Boardwalk Pipeline Partners LP (BWP, Financial) filed Quarterly Report for the period ended 2010-09-30.
Boardwalk Pipeline Partners Lp has a market cap of $6.47 billion; its shares were traded at around $33.62 with a P/E ratio of 27.6 and P/S ratio of 7.1. The dividend yield of Boardwalk Pipeline Partners Lp stocks is 6.1%.BWP is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, John Keeley of Keeley Fund Management.
Operating revenues for the nine months ended September 30, 2010 increased $184.6 million, or 29%, to $814.8 million, compared to $630.2 million for the nine months ended September 30, 2009. Gas transportation revenues, excluding fuel, increased $171.5 million and fuel retained increased $29.0 million primarily due to our pipeline expansion projects. The increases were partially offset by $13.7 million of lower interruptible and short-term firm transportation services resulting from lower basis spreads between delivery points on our pipeline systems.
Operating costs and expenses for the nine months ended September 30, 2010 increased $58.3 million, or 13%, to $502.3 million, compared to $444.0 million for the nine months ended September 30, 2009. The primary factors for the increase were increased fuel consumed of $43.7 million due to our pipeline expansion projects and higher depreciation and property taxes of $19.6 million associated with an increase in our asset base. Administrative and general expenses increased $9.5 million due to a legal settlement, an increase in outside services and unit-based compensation driven by an increase in the price of our common units. Impairment losses of $5.8 million were recognized in 2010 related to assets in the Overton Field area in northeast Texas, which were sold in the third quarter 2010, and a portion of pipe materials which we expect to dispose of by sale. The increased expenses were partly offset by a $12.3 million gain from the sale of gas related to our Western Kentucky Storage Expansion project. The 2009 period was unfavorably impacted by $6.0 million as a result of pipeline investigation and retirement costs related to the East Texas Pipeline.
In the third quarter, we reduced our cost estimates from $185.0 million to $110.0 million for the Haynesville Project resulting in a $75.0 million reduction, primarily due to lower materials and labor costs and placing the project in service earlier than expected. Growth capital expenditures, including our pipeline expansion projects, were $145.0 million for the nine months ended September 30, 2010. As discussed in Growth Projects, our major pipeline expansion projects are complete. However, we will continue to incur costs for post-construction activities such as clean up, right-of-way restoration and system optimization. For the remainder of 2010 and 2011, we expect to invest approximately $125.0 million to complete our growth projects. Our cost and timing estimates for these projects are subject to a variety of risks and uncertainties as discussed in Item 1A, Risk Factors, of our Annual Report on Form 10-K for the year ended December 31, 2009.
Net cash used in investing activities decreased $324.1 million to $157.8 million for the nine months ended September 30, 2010, compared to $481.9 million for the comparable 2009 period. The decrease was driven by a $482.7 million decrease in capital expenditures primarily related to the completion of our pipeline expansion projects and $16.4 million in proceeds from the sale of assets, mainly comprised of gas sales as a result of the Western Kentucky Storage Expansion. The decreases were partially offset by the sale of $175.0 million of short-term investments which occurred in the 2009 period.
Net cash used in financing activities increased $355.4 million to a use of cash of $154.0 million for the nine months ended September 30, 2010, compared to cash provided by financing activities of $201.4 million for the comparable 2009 period. The increase in cash used in financing activities resulted from a $779.8 million reduction in proceeds from the issuance and sale of debt and equity, including related general partner contributions, a $33.0 million increase in distributions to our partners and $10.7 million of payments made under our registration rights agreement. The increases were partly offset by a decrease of $463.5 million in net repayments related to our revolving credit facility.
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Boardwalk Pipeline Partners Lp has a market cap of $6.47 billion; its shares were traded at around $33.62 with a P/E ratio of 27.6 and P/S ratio of 7.1. The dividend yield of Boardwalk Pipeline Partners Lp stocks is 6.1%.BWP is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, John Keeley of Keeley Fund Management.
Highlight of Business Operations:
Operating costs and expenses for the three months ended September 30, 2010 increased $13.5 million, or 9%, to $164.5 million, compared to $151.0 million for the three months ended September 30, 2009. The primary factors for the increase were increased fuel consumed of $16.5 million due to our pipeline expansion projects and higher natural gas prices, higher depreciation and property taxes of $3.7 million associated with an increase in our asset base and increased maintenance activities of $2.4 million. An impairment loss of $3.3 million was recognized in the third quarter 2010 related to a portion of pipe materials which we expect to dispose of by sale. The increased expenses were partly offset by a $12.3 million gain from the sale of gas related to our Western Kentucky Storage Expansion project. The 2009 period was unfavorably impacted by $1.9 million from pipeline investigation and retirement costs related to the East Texas Pipeline, which impacted operations and maintenance expenses and loss on disposal of assets.Operating revenues for the nine months ended September 30, 2010 increased $184.6 million, or 29%, to $814.8 million, compared to $630.2 million for the nine months ended September 30, 2009. Gas transportation revenues, excluding fuel, increased $171.5 million and fuel retained increased $29.0 million primarily due to our pipeline expansion projects. The increases were partially offset by $13.7 million of lower interruptible and short-term firm transportation services resulting from lower basis spreads between delivery points on our pipeline systems.
Operating costs and expenses for the nine months ended September 30, 2010 increased $58.3 million, or 13%, to $502.3 million, compared to $444.0 million for the nine months ended September 30, 2009. The primary factors for the increase were increased fuel consumed of $43.7 million due to our pipeline expansion projects and higher depreciation and property taxes of $19.6 million associated with an increase in our asset base. Administrative and general expenses increased $9.5 million due to a legal settlement, an increase in outside services and unit-based compensation driven by an increase in the price of our common units. Impairment losses of $5.8 million were recognized in 2010 related to assets in the Overton Field area in northeast Texas, which were sold in the third quarter 2010, and a portion of pipe materials which we expect to dispose of by sale. The increased expenses were partly offset by a $12.3 million gain from the sale of gas related to our Western Kentucky Storage Expansion project. The 2009 period was unfavorably impacted by $6.0 million as a result of pipeline investigation and retirement costs related to the East Texas Pipeline.
In the third quarter, we reduced our cost estimates from $185.0 million to $110.0 million for the Haynesville Project resulting in a $75.0 million reduction, primarily due to lower materials and labor costs and placing the project in service earlier than expected. Growth capital expenditures, including our pipeline expansion projects, were $145.0 million for the nine months ended September 30, 2010. As discussed in Growth Projects, our major pipeline expansion projects are complete. However, we will continue to incur costs for post-construction activities such as clean up, right-of-way restoration and system optimization. For the remainder of 2010 and 2011, we expect to invest approximately $125.0 million to complete our growth projects. Our cost and timing estimates for these projects are subject to a variety of risks and uncertainties as discussed in Item 1A, Risk Factors, of our Annual Report on Form 10-K for the year ended December 31, 2009.
Net cash used in investing activities decreased $324.1 million to $157.8 million for the nine months ended September 30, 2010, compared to $481.9 million for the comparable 2009 period. The decrease was driven by a $482.7 million decrease in capital expenditures primarily related to the completion of our pipeline expansion projects and $16.4 million in proceeds from the sale of assets, mainly comprised of gas sales as a result of the Western Kentucky Storage Expansion. The decreases were partially offset by the sale of $175.0 million of short-term investments which occurred in the 2009 period.
Net cash used in financing activities increased $355.4 million to a use of cash of $154.0 million for the nine months ended September 30, 2010, compared to cash provided by financing activities of $201.4 million for the comparable 2009 period. The increase in cash used in financing activities resulted from a $779.8 million reduction in proceeds from the issuance and sale of debt and equity, including related general partner contributions, a $33.0 million increase in distributions to our partners and $10.7 million of payments made under our registration rights agreement. The increases were partly offset by a decrease of $463.5 million in net repayments related to our revolving credit facility.
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