Boardwalk Pipeline Partners LP (BWP, Financial) filed Quarterly Report for the period ended 2009-03-31.
Boardwalk Pipeline Partners LP is a master limited partnership engaged through its subsidiaries Texas Gas Transmission LLC and Gulf South Pipeline Company LP in the interstate transportation and storage of natural gas. Boardwalk Pipeline Partners LP has a market cap of $3.8 billion; its shares were traded at around $21.35 with a P/E ratio of 10.9 and P/S ratio of 4.8. The dividend yield of Boardwalk Pipeline Partners LP stocks is 9%.
Operating costs and expenses for the three months ended March 31, 2009, increased $49.0 million, or 51%, to $144.8 million, compared to $95.8 million for the three months ended March 31, 2008. The primary factors for the increases were higher depreciation and other taxes, comprised primarily of property taxes, of $29.1 million associated with an increase in our asset base. Operations and maintenance expense increased $5.9 million due to major maintenance projects and expansion project operations. Administrative and general expense increased $3.7 million due to increases in outside services, unit-based compensation driven by an increase in the price of our common units and employee benefits from reductions in trust assets for our pension and post-retirement benefit plans. The 2008 period was favorably impacted by an $11.2 million contract settlement gain.
Total other deductions increased by $13.2 million, or 100%, to $26.3 million for the three months ended March 31, 2009, compared to $13.1 million for the 2008 period. The primary factor for the increase was higher interest expense of $7.6 million resulting from increased debt levels in 2009 and lower capitalized interest associated with our expansion projects. The 2008 period included $3.1 million of gains from the mark-to-market effect of derivatives associated with the purchase of line pack for our expansion projects.
Net cash provided by operating activities decreased $45.9 million to $28.4 million for the three months ended March 31, 2009, compared to $74.3 million for the comparable 2008 period, primarily due to a $22.2 million increase in inventories and trade receivables, and $11.0 million from the change in net income, excluding non-cash items such as depreciation and amortization and the recognition of income previously deferred.
Net cash used in investing activities decreased $415.9 million to $126.9 million for the three months ended March 31, 2009, compared to $542.8 million for the comparable 2008 period, from a $240.6 million decrease in capital expenditures related to our expansion projects, and the sale of $175.0 million of short-term investments.
Net cash provided by financing activities decreased $112.2 million to $75.4 million for the three months ended March 31, 2009, compared to $187.6 million for the comparable 2008 period. These decreases resulted from an $85.7 million decrease in proceeds from the issuance of debt and net borrowings under our revolving credit facility and a $26.2 million increase in distributions to our partners.
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Boardwalk Pipeline Partners LP is a master limited partnership engaged through its subsidiaries Texas Gas Transmission LLC and Gulf South Pipeline Company LP in the interstate transportation and storage of natural gas. Boardwalk Pipeline Partners LP has a market cap of $3.8 billion; its shares were traded at around $21.35 with a P/E ratio of 10.9 and P/S ratio of 4.8. The dividend yield of Boardwalk Pipeline Partners LP stocks is 9%.
Highlight of Business Operations:
Operating revenues for the three months ended March 31, 2009, increased $26.1 million, or 13%, to $223.4 million, compared to $197.3 million for the three months ended March 31, 2008. Gas transportation revenues, excluding fuel, increased $28.2 million, primarily from our expansion projects. Gas storage revenues increased $2.9 million related to an increase in storage capacity associated with our Western Kentucky Storage Expansion and PAL revenues increased $2.3 million due to favorable winter-to-summer natural gas price spreads. These increases were partially offset by lower fuel revenues of $7.3 million due to unfavorable natural gas prices.Operating costs and expenses for the three months ended March 31, 2009, increased $49.0 million, or 51%, to $144.8 million, compared to $95.8 million for the three months ended March 31, 2008. The primary factors for the increases were higher depreciation and other taxes, comprised primarily of property taxes, of $29.1 million associated with an increase in our asset base. Operations and maintenance expense increased $5.9 million due to major maintenance projects and expansion project operations. Administrative and general expense increased $3.7 million due to increases in outside services, unit-based compensation driven by an increase in the price of our common units and employee benefits from reductions in trust assets for our pension and post-retirement benefit plans. The 2008 period was favorably impacted by an $11.2 million contract settlement gain.
Total other deductions increased by $13.2 million, or 100%, to $26.3 million for the three months ended March 31, 2009, compared to $13.1 million for the 2008 period. The primary factor for the increase was higher interest expense of $7.6 million resulting from increased debt levels in 2009 and lower capitalized interest associated with our expansion projects. The 2008 period included $3.1 million of gains from the mark-to-market effect of derivatives associated with the purchase of line pack for our expansion projects.
Net cash provided by operating activities decreased $45.9 million to $28.4 million for the three months ended March 31, 2009, compared to $74.3 million for the comparable 2008 period, primarily due to a $22.2 million increase in inventories and trade receivables, and $11.0 million from the change in net income, excluding non-cash items such as depreciation and amortization and the recognition of income previously deferred.
Net cash used in investing activities decreased $415.9 million to $126.9 million for the three months ended March 31, 2009, compared to $542.8 million for the comparable 2008 period, from a $240.6 million decrease in capital expenditures related to our expansion projects, and the sale of $175.0 million of short-term investments.
Net cash provided by financing activities decreased $112.2 million to $75.4 million for the three months ended March 31, 2009, compared to $187.6 million for the comparable 2008 period. These decreases resulted from an $85.7 million decrease in proceeds from the issuance of debt and net borrowings under our revolving credit facility and a $26.2 million increase in distributions to our partners.
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