|
Item 1. Financial Statements
|
March 31,
|
December 31,
|
|||||||
ASSETS
|
2010
|
2009
|
||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$ | 120.6 | $ | 45.8 | ||||
Receivables:
|
||||||||
Trade, net
|
88.2 | 95.5 | ||||||
Other
|
11.3 | 13.5 | ||||||
Gas transportation receivables
|
2.9 | 7.9 | ||||||
Costs recoverable from customers
|
9.1 | 6.0 | ||||||
Gas stored underground
|
4.4 | 2.1 | ||||||
Prepayments
|
7.6 | 10.1 | ||||||
Other current assets
|
16.6 | 10.0 | ||||||
Total current assets
|
260.7 | 190.9 | ||||||
Property, Plant and Equipment:
|
||||||||
Natural gas transmission plant
|
6,532.5 | 6,406.7 | ||||||
Other natural gas plant
|
220.7 | 217.1 | ||||||
Construction work in progress
|
140.4 | 231.4 | ||||||
Property, plant and equipment, gross
|
6,893.6 | 6,855.2 | ||||||
Less—accumulated depreciation and amortization
|
628.9 | 577.3 | ||||||
Property, plant and equipment, net
|
6,264.7 | 6,277.9 | ||||||
Other Assets:
|
||||||||
Goodwill
|
163.5 | 163.5 | ||||||
Gas stored underground
|
138.5 | 133.7 | ||||||
Costs recoverable from customers
|
16.0 | 16.1 | ||||||
Other
|
118.2 | 113.7 | ||||||
Total other assets
|
436.2 | 427.0 | ||||||
Total Assets
|
$ | 6,961.6 | $ | 6,895.8 |
March 31,
|
December 31,
|
|||||||
LIABILITIES AND PARTNERS’ CAPITAL
|
2010
|
2009
|
||||||
Current Liabilities:
|
||||||||
Payables:
|
||||||||
Trade
|
$ | 34.2 | $ | 58.4 | ||||
Affiliates
|
1.2 | 8.6 | ||||||
Other
|
25.7 | 17.8 | ||||||
Gas transportation payables
|
9.4 | 5.0 | ||||||
Accrued taxes, other
|
27.4 | 41.2 | ||||||
Accrued interest
|
30.9 | 41.8 | ||||||
Accrued payroll and employee benefits
|
11.4 | 16.4 | ||||||
Construction retainage
|
17.7 | 21.0 | ||||||
Deferred income
|
13.1 | 20.9 | ||||||
Other current liabilities
|
25.3 | 19.8 | ||||||
Total current liabilities
|
196.3 | 250.9 | ||||||
Long–term debt
|
3,125.6 | 3,000.0 | ||||||
Long–term debt – affiliate
|
100.0 | 100.0 | ||||||
Total long-term debt
|
3,225.6 | 3,100.0 | ||||||
Other Liabilities and Deferred Credits:
|
||||||||
Pension liability
|
30.4 | 31.6 | ||||||
Asset retirement obligation
|
17.6 | 18.0 | ||||||
Provision for other asset retirement
|
47.9 | 47.0 | ||||||
Payable to affiliate
|
19.7 | 20.6 | ||||||
Other
|
61.4 | 63.5 | ||||||
Total other liabilities and deferred credits
|
177.0 | 180.7 | ||||||
Commitments and Contingencies
|
||||||||
Partners’ Capital:
|
||||||||
Common units – 169.7 million units issued and outstanding as of
March 31, 2010, and December 31, 2009
|
2,633.2 | 2,640.5 | ||||||
Class B units – 22.9 million units issued and outstanding as of
March 31, 2010, and December 31, 2009
|
683.6 | 683.6 | ||||||
General partner
|
65.3 | 65.5 | ||||||
Accumulated other comprehensive loss
|
(19.4 | ) | (25.4 | ) | ||||
Total partners’ capital
|
3,362.7 | 3,364.2 | ||||||
Total Liabilities and Partners’ Capital
|
$ | 6,961.6 | $ | 6,895.8 |
For the Three Months Ended
March 31,
|
||||||||
2010
|
2009
|
|||||||
Operating Revenues:
|
||||||||
Gas transportation
|
$ | 271.9 | $ | 200.9 | ||||
Parking and lending
|
9.4 | 7.4 | ||||||
Gas storage
|
15.1 | 13.6 | ||||||
Other
|
4.1 | 1.5 | ||||||
Total operating revenues
|
300.5 | 223.4 | ||||||
Operating Costs and Expenses:
|
||||||||
Fuel and gas transportation
|
29.9 | 15.7 | ||||||
Operation and maintenance
|
29.4 | 30.8 | ||||||
Administrative and general
|
35.7 | 28.9 | ||||||
Depreciation and amortization
|
53.4 | 46.4 | ||||||
Asset impairment
|
0.3 | - | ||||||
Net loss on disposal of operating assets
|
1.1 | 0.9 | ||||||
Taxes other than income taxes
|
23.3 | 22.1 | ||||||
Total operating costs and expenses
|
173.1 | 144.8 | ||||||
|
||||||||
Operating income
|
127.4 | 78.6 | ||||||
Other Deductions (Income):
|
||||||||
Interest expense
|
35.2 | 26.6 | ||||||
Interest expense – affiliates
|
2.0 | - | ||||||
Interest income
|
(0.1 | ) | (0.1 | ) | ||||
Miscellaneous other income, net
|
(0.1 | ) | (0.2 | ) | ||||
Total other deductions
|
37.0 | 26.3 | ||||||
Income before income taxes
|
90.4 | 52.3 | ||||||
Income taxes
|
0.1 | 0.3 | ||||||
Net income
|
$ | 90.3 | $ | 52.0 | ||||
Net Income per Unit:
|
||||||||
Basic and diluted net income per unit:
|
||||||||
Common units
|
$ | 0.46 | $ | 0.29 | ||||
Class B units
|
$ | 0.26 | $ | 0.11 | ||||
Cash distribution to common units
|
$ | 0.50 | $ | 0.48 | ||||
Cash distribution to class B units
|
$ | 0.30 | $ | 0.30 | ||||
Weighted-average number of units outstanding:
|
||||||||
Common units
|
169.7 | 154.9 | ||||||
Class B units
|
22.9 | 22.9 |
For the Three Months Ended
March 31,
|
||||||||
2010
|
2009
|
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 90.3 | $ | 52.0 | ||||
Adjustments to reconcile to cash provided by operations:
|
||||||||
Depreciation and amortization
|
53.4 | 46.4 | ||||||
Amortization of deferred costs
|
2.3 | 2.4 | ||||||
Net loss on disposal of operating assets
|
1.1 | 0.9 | ||||||
Asset impairment
|
0.3 | - | ||||||
Changes in operating assets and liabilities:
|
||||||||
Trade and other receivables
|
10.3 | (9.3 | ) | |||||
Gas receivables and storage assets
|
(2.7 | ) | (31.9 | ) | ||||
Costs recoverable from customers
|
(3.1 | ) | - | |||||
Inventories
|
- | (14.2 | ) | |||||
Other assets
|
6.7 | (39.3 | ) | |||||
Trade and other payables
|
(33.2 | ) | (4.7 | ) | ||||
Other payables, affiliates
|
0.7 | - | ||||||
Gas payables
|
(0.1 | ) | 29.0 | |||||
Accrued liabilities
|
(27.5 | ) | (18.5 | ) | ||||
Other liabilities
|
6.1 | 15.6 | ||||||
Net cash provided by operating activities
|
104.6 | 28.4 | ||||||
INVESTING ACTIVITIES:
|
||||||||
Capital expenditures
|
(49.7 | ) | (301.9 | ) | ||||
Sales of short-term investments
|
- | 175.0 | ||||||
Net cash used in investing activities
|
(49.7 | ) | (126.9 | ) | ||||
FINANCING ACTIVITIES:
|
||||||||
Proceeds from borrowings on revolving credit agreement
|
125.0 | 161.5 | ||||||
Payments on note payable
|
(0.3 | ) | (0.3 | ) | ||||
Payments associated with registration rights agreement
|
(10.7 | ) | - | |||||
Advances from affiliate
|
3.7 | - | ||||||
Distributions paid
|
(97.8 | ) | (85.8 | ) | ||||
Net cash provided by financing activities
|
19.9 | 75.4 | ||||||
Increase (decrease) in cash and cash equivalents
|
74.8 | (23.1 | ) | |||||
Cash and cash equivalents at beginning of period
|
45.8 | 137.7 | ||||||
Cash and cash equivalents at end of period
|
$ | 120.6 | $ | 114.6 |
Common
Units
|
Class B Units
|
General Partner
|
Accumulated Other Comp Income (Loss)
|
Total Partners’ Capital
|
||||||||||||||||
Balance January 1, 2009
|
$ | 2,504.8 | $ | 692.8 | $ | 62.9 | $ | (15.5 | ) | $ | 3,245.0 | |||||||||
Add (deduct):
|
||||||||||||||||||||
Net income
|
42.0 | 6.2 | 3.8 | - | 52.0 | |||||||||||||||
Distributions paid
|
(74.4 | ) | (6.9 | ) | (4.5 | ) | - | (85.8 | ) | |||||||||||
Other comprehensive income
|
- | - | - | 3.2 | 3.2 | |||||||||||||||
Balance March 31, 2009
|
$ | 2,472.4 | $ | 692.1 | $ | 62.2 | $ | (12.3 | ) | $ | 3,214.4 | |||||||||
Balance January 1, 2010
|
$ | 2,640.5 | $ | 683.6 | $ | 65.5 | $ | (25.4 | ) | $ | 3,364.2 | |||||||||
Add (deduct):
|
||||||||||||||||||||
Net income
|
77.5 | 6.9 | 5.9 | - | 90.3 | |||||||||||||||
Distributions paid
|
(84.8 | ) | (6.9 | ) | (6.1 | ) | - | (97.8 | ) | |||||||||||
Other comprehensive income
|
- | - | - | 6.0 | 6.0 | |||||||||||||||
Balance March 31, 2010
|
$ | 2,633.2 | $ | 683.6 | $ | 65.3 | $ | (19.4 | ) | $ | 3,362.7 |
For the Three Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
Net income
|
$ | 90.3 | $ | 52.0 | ||||
Other comprehensive income (loss):
|
||||||||
Gain on cash flow hedges
|
8.8 | 8.0 | ||||||
Reclassification adjustment transferred to Net income from cash flow hedges
|
(1.3 | ) | (0.9 | ) | ||||
Pension and other postretirement benefits costs
|
(1.5 | ) | (3.9 | ) | ||||
Total comprehensive income
|
$ | 96.3 | $ | 55.2 |
Asset Derivatives
|
Liability Derivatives
|
|||||||||||||||||||
March 31, 2010
|
December 31, 2009
|
March 31, 2010
|
December 31, 2009
|
|||||||||||||||||
Balance sheet location
|
Fair Value
|
Balance
sheet location
|
Fair Value
|
Balance sheet location
|
Fair Value
|
Balance
sheet
location
|
Fair Value
|
|||||||||||||
Derivatives designated as hedging instruments
|
||||||||||||||||||||
Commodity contracts
|
Other current
assets
|
$ | 13.3 |
Other current
assets
|
$ | 6.2 |
Other current
liabilities
|
$ | - |
Other current
liabilities
|
$ | - |
Amount of gain/(loss) recognized in AOCI on derivatives (effective portion)
|
Location of gain/(loss) reclassified from AOCI into income (effective portion)
|
Amount of gain/(loss) reclassified from AOCI into income (effective portion
)
|
Location of gain/(loss) recognized in income on derivative (in- effective portion and amount excluded from effectiveness testing)
|
Amount of gain/(loss) recognized in income on derivative (in- effective portion and amount excluded from effectiveness testing)
|
|||||||||||||
Derivatives in Cash Flow Hedging Relationship
|
|||||||||||||||||
Commodity contracts
|
$ | 8.8 |
Operating revenues
|
$ | 1.7 | N/A | $ | - | |||||||||
Interest rate contracts (1)
|
- |
Interest expense
|
(0.4 | ) | N/A | - | |||||||||||
$ | 8.8 | $ | 1.3 | $ | - |
|
(1)
|
Related to amounts deferred in AOCI from Treasury rate locks used in hedging interest payments associated with debt offerings which were settled in previous periods and are being amortized to earnings over the terms of related anticipated interest payments, generally the terms of the related debt.
|
Amount of gain/(loss) recognized in AOCI on derivatives (effective portion)
|
Location of gain/(loss) reclassified from AOCI into income (effective portion)
|
Amount of gain/(loss) reclassified from AOCI into income (effective portion
)
|
Location of gain/(loss) recognized in income on derivative (in- effective portion and amount excluded from effectiveness testing)
|
Amount of gain/(loss) recognized in income on derivative (in- effective portion and amount excluded from effectiveness testing)
|
|||||||||||||
Derivatives in Cash Flow Hedging Relationship
|
|||||||||||||||||
Commodity contracts
|
$ | 8.0 |
Operating revenues
|
$ | 1.3 | N/A | $ | - | |||||||||
Interest rate contracts (1)
|
- |
Interest expense
|
(0.4 | ) | N/A | - | |||||||||||
$ | 8.0 | $ | 0.9 | $ | - |
|
(1)
|
Related to amounts deferred in AOCI from Treasury rate locks used in hedging interest payments associated with debt offerings which were settled in previous periods and are being amortized to earnings over the terms of related anticipated interest payments, generally the terms of the related debt.
|
Less than 1 year
|
$ | 54.4 | ||
1-3 years
|
- | |||
4-5 years
|
- | |||
More than 5 years
|
- | |||
Total
|
$ | 54.4 |
|
Total Quarterly Distribution
|
Marginal Percentage
Interest in
Distributions
|
||||||||||||
|
Target Amount
|
Limited Partner
Unitholders
(1)
|
General
Partner
and IDRs
|
|||||||||||
First Target Distribution
|
|
up to $0.4025
|
|
98%
|
2%
|
|||||||||
Second Target Distribution
|
|
above $0.4025 up to $0.4375
|
|
85%
|
15%
|
|||||||||
Third Target Distribution
|
|
above $0.4375 up to $0.5250
|
|
75%
|
25%
|
|||||||||
Thereafter
|
|
Above $0.5250
|
|
50%
|
50%
|
(1)
|
The class B unitholders participate in distributions on a pari passu basis with the Partnership’s common units up to $0.30 per unit per quarter. The class B units do not participate in quarterly distributions above $0.30 per unit.
|
Total
|
Common Units
|
Class B Units
|
General Partner and IDRs
|
|||||||||||||
Net income
|
$ | 90.3 | ||||||||||||||
Declared distribution
|
99.0 | $ | 85.7 | $ | 6.9 | $ | 6.4 | |||||||||
Assumed allocation of undistributed net loss
|
(8.7 | ) | (7.5 | ) | (1.0 | ) | (0.2 | ) | ||||||||
Assumed allocation of net income
|
$ | 90.3 | $ | 78.2 | $ | 5.9 | $ | 6.2 | ||||||||
Weighted average units outstanding
|
169.7 | 22.9 | ||||||||||||||
Net income per unit
|
$ | 0.46 | $ | 0.26 |
Total
|
Common Units
|
Class B
Units
|
General Partner and IDRs
|
|||||||||||||
Net income
|
$ | 52.0 | ||||||||||||||
Declared distribution
|
86.8 | $ | 75.1 | $ | 6.9 | $ | 4.8 | |||||||||
Assumed allocation of undistributed net income
|
(34.8 | ) | (29.7 | ) | (4.4 | ) | (0.7 | ) | ||||||||
Assumed allocation of net income
|
$ | 52.0 | $ | 45.4 | $ | 2.5 | $ | 4.1 | ||||||||
Weighted average units outstanding
|
154.9 | 22.9 | ||||||||||||||
Net income per unit
|
$ | 0.29 | $ | 0.11 |
Retirement Plans
|
PBOP
|
|||||||||||||||
For the Three Months Ended
|
For the Three Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Service cost
|
$ | 0.9 | $ | 0.9 | $ | 0.1 | $ | 0.1 | ||||||||
Interest cost
|
1.7 | 1.7 | 0.7 | 0.8 | ||||||||||||
Expected return on plan assets
|
(1.7 | ) | (1.4 | ) | (0.9 | ) | (1.0 | ) | ||||||||
Amortization of prior service credit
|
- | - | (1.9 | ) | (1.9 | ) | ||||||||||
Amortization of unrecognized net loss
|
0.3 | 0.5 | 0.2 | 0.3 | ||||||||||||
Regulatory asset decrease
|
- | - | 1.4 | 1.4 | ||||||||||||
Net periodic benefits expense
|
$ | 1.2 | $ | 1.7 | $ | (0.4 | ) | $ | (0.3 | ) |
As of
|
As of
|
|||||||
March 31,
2010
|
December 31,
2009
|
|||||||
Gain (loss) on cash flow hedges
|
$ | 0.8 | $ | (6.7 | ) | |||
Deferred components of net periodic benefit cost
|
(20.2 | ) | (18.7 | ) | ||||
Total Accumulated other comprehensive loss
|
$ | (19.4 | ) | $ | (25.4 | ) |
March 31, 2010
|
December 31, 2009
|
|||||||||||||||
Financial Assets
|
Carrying Amount
|
Fair Value
|
Carrying Amount
|
Fair Value
|
||||||||||||
Cash and cash equivalents
|
$ | 120.6 | $ | 120.6 | $ | 45.8 | $ | 45.8 | ||||||||
Financial Liabilities
|
||||||||||||||||
Long-term debt
|
$ | 3,125.6 | $ | 3,253.0 | $ | 3,000.0 | $ | 3,060.6 | ||||||||
Long-term debt – affiliate
|
100.0 | 103.5 | 100.0 | 108.0 |
For the Three Months Ended
March 31,
|
||||||||
2010
|
2009
|
|||||||
Cash paid during the period for:
|
||||||||
Interest (net of amount capitalized)
|
$ | 44.7 | $ | 34.8 | ||||
Non-cash adjustments:
|
||||||||
Accounts payable and PPE
|
$ | 37.6 | $ | 51.0 |
Assets
|
Parent Guarantor
|
Subsidiary Issuer
|
Non-guarantor Subsidiaries
|
Eliminations
|
Consolidated Boardwalk Pipeline Partners, LP
|
|||||||||||||||
Cash and cash equivalents
|
$
|
-
|
$
|
112.9
|
$
|
7.7
|
$
|
-
|
$
|
120.6
|
||||||||||
Receivables
|
-
|
-
|
133.7
|
(34.2
|
)
|
99.5
|
||||||||||||||
Gas stored underground
|
-
|
-
|
4.4
|
-
|
4.4
|
|||||||||||||||
Prepayments
|
0.2
|
-
|
7.4
|
-
|
7.6
|
|||||||||||||||
Advances to affiliates
|
-
|
161.1
|
-
|
(161.1
|
)
|
-
|
||||||||||||||
Other current assets
|
0.3
|
-
|
33.5
|
(5.2
|
)
|
28.6
|
||||||||||||||
Total current assets
|
0.5
|
274.0
|
186.7
|
(200.5
|
)
|
260.7
|
||||||||||||||
Investment in consolidated subsidiaries
|
745.2
|
4,705.8
|
-
|
(5,451.0
|
)
|
-
|
||||||||||||||
Property, plant and equipment, gross
|
0.6
|
-
|
6,893.0
|
-
|
6,893.6
|
|||||||||||||||
Less–accumulated depreciation and
amortization
|
(0.4
|
)
|
-
|
(628.5
|
)
|
-
|
(628.9
|
)
|
||||||||||||
Property, plant and equipment, net
|
0.2
|
-
|
6,264.5
|
-
|
6,264.7
|
|||||||||||||||
Other noncurrent assets
|
0.2
|
2.0
|
432.6
|
1.4
|
436.2
|
|||||||||||||||
Advances to affiliates – noncurrent
|
2,639.4
|
63.0
|
206.8
|
(2,909.2
|
)
|
-
|
||||||||||||||
Total other assets
|
2,639.6
|
65.0
|
639.4
|
(2,907.8
|
)
|
436.2
|
||||||||||||||
Total Assets
|
$
|
3,385.5
|
$
|
5,044.8
|
$
|
7,090.6
|
$
|
(8,559.3
|
)
|
$
|
6,961.6
|
Liabilities & Partners' Capital/Member’s
Equity
|
Parent Guarantor
|
Subsidiary
Issuer
|
Non-guarantor Subsidiaries
|
Eliminations
|
Consolidated Boardwalk Pipeline Partners, LP
|
|||||||||||||
Payables
|
$
|
2.9
|
$
|
0.2
|
$
|
92.2
|
$
|
(34.2
|
)
|
$
|
61.1
|
|||||||
Advances from affiliates
|
-
|
-
|
161.1
|
(161.1
|
)
|
-
|
||||||||||||
Other current liabilities
|
0.2
|
14.5
|
124.3
|
(3.8
|
)
|
135.2
|
||||||||||||
Total current liabilities
|
3.1
|
14.7
|
377.6
|
(199.1
|
)
|
196.3
|
||||||||||||
Total long-term debt
|
-
|
1,438.7
|
1,786.9
|
-
|
3,225.6
|
|||||||||||||
Payable to affiliate
|
19.7
|
2,846.2
|
63.0
|
(2,909.2
|
)
|
19.7
|
||||||||||||
Other noncurrent liabilities
|
-
|
-
|
157.3
|
-
|
157.3
|
|||||||||||||
Total other liabilities and deferred credits
|
19.7
|
2,846.2
|
220.3
|
(2,909.2
|
)
|
177.0
|
||||||||||||
Total partners’ capital/member’s equity
|
3,362.7
|
745.2
|
4,705.8
|
(5,451.0
|
)
|
3,362.7
|
||||||||||||
Total Liabilities and Partners'
Capital/Member’s Equity
|
$
|
3,385.5
|
$
|
5,044.8
|
$
|
7,090.6
|
$
|
(8,559.3
|
)
|
$
|
6,961.6
|
Assets
|
Parent Guarantor
|
Subsidiary Issuer
|
Non-guarantor Subsidiaries
|
Eliminations
|
Consolidated Boardwalk Pipeline Partners, LP
|
|||||||||||||||
Cash and cash equivalents
|
$
|
-
|
$
|
45.6
|
$
|
0.2
|
$
|
-
|
$
|
45.8
|
||||||||||
Receivables
|
-
|
-
|
137.9
|
(28.9
|
)
|
109.0
|
||||||||||||||
Gas stored underground
|
-
|
-
|
2.1
|
-
|
2.1
|
|||||||||||||||
Prepayments
|
-
|
-
|
10.1
|
-
|
10.1
|
|||||||||||||||
Advances to affiliates
|
-
|
128.0
|
-
|
(128.0
|
)
|
-
|
||||||||||||||
Other current assets
|
0.3
|
-
|
25.2
|
(1.6
|
)
|
23.9
|
||||||||||||||
Total current assets
|
0.3
|
173.6
|
175.5
|
(158.5
|
)
|
190.9
|
||||||||||||||
Investment in consolidated subsidiaries
|
754.9
|
4,592.2
|
-
|
(5,347.1
|
)
|
-
|
||||||||||||||
Property, plant and equipment, gross
|
0.6
|
-
|
6,854.6
|
-
|
6,855.2
|
|||||||||||||||
Less–accumulated depreciation and
amortization
|
(0.4
|
)
|
-
|
(576.9
|
)
|
-
|
(577.3
|
)
|
||||||||||||
Property, plant and equipment, net
|
0.2
|
-
|
6,277.7
|
-
|
6,277.9
|
|||||||||||||||
Other noncurrent assets
|
0.4
|
2.1
|
424.5
|
-
|
427.0
|
|||||||||||||||
Advances to affiliates – noncurrent
|
2,638.2
|
121.6
|
165.8
|
(2,925.6
|
)
|
-
|
||||||||||||||
Total other assets
|
2,638.6
|
123.7
|
590.3
|
(2,925.6
|
)
|
427.0
|
||||||||||||||
Total Assets
|
$
|
3,394.0
|
$
|
4,889.5
|
$
|
7,043.5
|
$
|
(8,431.2
|
)
|
$
|
6,895.8
|
Liabilities & Partners' Capital/Member’s
Equity
|
Parent Guarantor
|
Subsidiary
Issuer
|
Non-guarantor Subsidiaries
|
Eliminations
|
Consolidated Boardwalk Pipeline Partners, LP
|
|||||||||||||
Payables
|
$
|
8.9
|
$
|
0.3
|
$
|
104.5
|
$
|
(28.9
|
)
|
$
|
84.8
|
|||||||
Advances from affiliates
|
-
|
-
|
128.0
|
(128.0
|
)
|
-
|
||||||||||||
Other current liabilities
|
0.3
|
16.9
|
150.5
|
(1.6
|
)
|
166.1
|
||||||||||||
Total current liabilities
|
9.2
|
17.2
|
383.0
|
(158.5
|
)
|
250.9
|
||||||||||||
Total long-term debt
|
-
|
1,313.5
|
1,786.5
|
-
|
3,100.0
|
|||||||||||||
Payable to affiliate
|
20.6
|
2,804.0
|
121.6
|
(2,925.6
|
)
|
20.6
|
||||||||||||
Other noncurrent liabilities
|
-
|
(0.1
|
)
|
160.2
|
-
|
160.1
|
||||||||||||
Total other liabilities and deferred credits
|
20.6
|
2,803.9
|
281.8
|
(2,925.6
|
)
|
180.7
|
||||||||||||
Total partners’ capital/member’s equity
|
3,364.2
|
754.9
|
4,592.2
|
(5,347.1
|
)
|
3,364.2
|
||||||||||||
Total Liabilities and Partners'
Capital/Member’s Equity
|
$
|
3,394.0
|
$
|
4,889.5
|
$
|
7,043.5
|
$
|
(8,431.2
|
)
|
$
|
6,895.8
|
Parent Guarantor
|
Subsidiary Issuer
|
Non-guarantor Subsidiaries
|
Eliminations
|
Consolidated Boardwalk Pipeline Partners, LP
|
||||||||||||||||
Operating revenues:
|
||||||||||||||||||||
Gas transportation
|
$
|
-
|
$
|
-
|
$
|
301.0
|
$
|
(29.1
|
)
|
$
|
271.9
|
|||||||||
Parking and lending
|
-
|
-
|
10.4
|
(1.0
|
)
|
9.4
|
||||||||||||||
Gas storage
|
-
|
-
|
15.1
|
-
|
15.1
|
|||||||||||||||
Other
|
-
|
-
|
4.1
|
-
|
4.1
|
|||||||||||||||
Total operating revenues
|
-
|
-
|
330.6
|
(30.1
|
)
|
300.5
|
||||||||||||||
Operating cost and expenses:
|
||||||||||||||||||||
Fuel and gas transportation
|
-
|
-
|
60.0
|
(30.1
|
)
|
29.9
|
||||||||||||||
Operation and maintenance
|
-
|
-
|
29.4
|
-
|
29.4
|
|||||||||||||||
Administrative and general
|
1.6
|
-
|
34.1
|
-
|
35.7
|
|||||||||||||||
Other operating costs and expenses
|
0.1
|
-
|
78.0
|
-
|
78.1
|
|||||||||||||||
Total operating costs and
Expenses
|
1.7
|
-
|
201.5
|
(30.1
|
)
|
173.1
|
||||||||||||||
Operating income (loss)
|
(1.7
|
)
|
-
|
129.1
|
-
|
127.4
|
||||||||||||||
Other deductions (income):
|
||||||||||||||||||||
Interest expense, affiliate, net
|
(8.2
|
)
|
9.9
|
0.3
|
-
|
2.0
|
||||||||||||||
Interest expense
|
-
|
15.8
|
19.4
|
-
|
35.2
|
|||||||||||||||
Interest income
|
-
|
-
|
(0.1
|
)
|
-
|
(0.1
|
)
|
|||||||||||||
Equity in earnings of subsidiaries
|
(83.8
|
)
|
(109.5
|
)
|
-
|
193.3
|
-
|
|||||||||||||
Miscellaneous other income, net
|
-
|
-
|
(0.1
|
)
|
-
|
(0.1
|
)
|
|||||||||||||
Total other deductions (income)
|
(92.0
|
)
|
(83.8
|
)
|
19.5
|
193.3
|
37.0
|
|||||||||||||
Income before income taxes
|
90.3
|
83.8
|
109.6
|
(193.3
|
)
|
90.4
|
||||||||||||||
Income Taxes
|
-
|
-
|
0.1
|
-
|
0.1
|
|||||||||||||||
Net Income
|
$
|
90.3
|
$
|
83.8
|
$
|
109.5
|
$
|
(193.3
|
)
|
$
|
90.3
|
Parent Guarantor
|
Subsidiary Issuer
|
Non-guarantor Subsidiaries
|
Eliminations
|
Consolidated Boardwalk Pipeline Partners, LP
|
||||||||||||||||
Operating revenues:
|
||||||||||||||||||||
Gas transportation
|
$
|
-
|
$
|
-
|
$
|
205.2
|
$
|
(4.3
|
)
|
$
|
200.9
|
|||||||||
Parking and lending
|
-
|
-
|
7.4
|
-
|
7.4
|
|||||||||||||||
Gas storage
|
-
|
-
|
13.8
|
(0.2
|
)
|
13.6
|
||||||||||||||
Other
|
-
|
-
|
1.5
|
-
|
1.5
|
|||||||||||||||
Total operating revenues
|
-
|
-
|
227.9
|
(4.5
|
)
|
223.4
|
||||||||||||||
Operating cost and expenses:
|
||||||||||||||||||||
Fuel and gas transportation
|
-
|
-
|
20.0
|
(4.3
|
)
|
15.7
|
||||||||||||||
Operation and maintenance
|
-
|
-
|
31.0
|
(0.2
|
)
|
30.8
|
||||||||||||||
Administrative and general
|
(0.1
|
)
|
-
|
29.0
|
-
|
28.9
|
||||||||||||||
Other operating costs and expenses
|
-
|
-
|
69.4
|
-
|
69.4
|
|||||||||||||||
Total operating costs and
Expenses
|
(0.1
|
)
|
-
|
149.4
|
(4.5
|
)
|
144.8
|
|||||||||||||
Operating income
|
0.1
|
-
|
78.5
|
-
|
78.6
|
|||||||||||||||
Other deductions (income):
|
||||||||||||||||||||
Interest expense, affiliate, net
|
(12.3
|
)
|
12.3
|
-
|
-
|
-
|
||||||||||||||
Interest expense
|
-
|
9.7
|
16.9
|
-
|
26.6
|
|||||||||||||||
Interest income
|
-
|
(0.1
|
)
|
-
|
-
|
(0.1
|
)
|
|||||||||||||
Equity in earnings of subsidiaries
|
(39.6
|
)
|
(61.5
|
)
|
-
|
101.1
|
-
|
|||||||||||||
Miscellaneous other income, net
|
-
|
-
|
(0.2
|
)
|
-
|
(0.2
|
)
|
|||||||||||||
Total other deductions (income)
|
(51.9
|
)
|
(39.6
|
)
|
16.7
|
101.1
|
26.3
|
|||||||||||||
-
|
||||||||||||||||||||
Income before income taxes
|
52.0
|
39.6
|
61.8
|
(101.1
|
)
|
52.3
|
||||||||||||||
Income Taxes
|
-
|
-
|
0.3
|
-
|
0.3
|
|||||||||||||||
Net Income
|
$
|
52.0
|
$
|
39.6
|
$
|
61.5
|
$
|
(101.1
|
)
|
$
|
52.0
|
Parent Guarantor
|
Subsidiary Issuer
|
Non-guarantor Subsidiaries
|
Eliminations
|
Consolidated Boardwalk Pipeline Partners, LP
|
||||||||||||||||
Net Cash Provided by (Used In) Operating Activities
|
$
|
92.2
|
$
|
(27.6
|
)
|
$
|
123.7
|
$
|
(83.7
|
)
|
$
|
104.6
|
||||||||
Investing Activities:
|
||||||||||||||||||||
Capital expenditures
|
-
|
-
|
(49.7
|
)
|
-
|
(49.7
|
)
|
|||||||||||||
Advances to affiliates, net
|
(1.2
|
)
|
25.5
|
(41.0
|
)
|
16.7
|
-
|
|||||||||||||
Distribution from consolidated subsidiary
|
14.1
|
-
|
-
|
(14.1
|
)
|
-
|
||||||||||||||
Net Cash (Used in) Provided by Investing Activities
|
12.9
|
25.5
|
(90.7
|
)
|
2.6
|
(49.7
|
)
|
|||||||||||||
Financing Activities:
|
||||||||||||||||||||
Proceeds from borrowings on revolving credit agreement
|
-
|
125.0
|
-
|
-
|
125.0
|
|||||||||||||||
Payments on note payable
|
(0.3
|
)
|
-
|
-
|
-
|
(0.3
|
)
|
|||||||||||||
Distributions paid
|
(97.8
|
)
|
(97.8
|
)
|
-
|
97.8
|
(97.8
|
)
|
||||||||||||
Payments associated with registration rights agreement
|
(10.7
|
)
|
-
|
-
|
-
|
(10.7
|
)
|
|||||||||||||
Advances from affiliates, net
|
3.7
|
42.2
|
(25.5
|
)
|
(16.7
|
)
|
3.7
|
|||||||||||||
Net Cash Provided by (Used in) Financing Activities
|
(105.1
|
)
|
69.4
|
(25.5
|
)
|
81.1
|
19.9
|
|||||||||||||
Increase in Cash and Cash Equivalents
|
-
|
67.3
|
7.5
|
-
|
74.8
|
|||||||||||||||
Cash and Cash Equivalents at Beginning of Period
|
-
|
45.6
|
0.2
|
-
|
45.8
|
|||||||||||||||
Cash and Cash Equivalents at End of
Period
|
$
|
-
|
$
|
112.9
|
$
|
7.7
|
$
|
-
|
$
|
120.6
|
Parent Guarantor
|
Subsidiary Issuer
|
Non-guarantor Subsidiaries
|
Eliminations
|
Consolidated Boardwalk Pipeline Partners, LP
|
||||||||||||||||
Net Cash Provided by (Used In) Operating Activities
|
$
|
52.0
|
$
|
(22.6)
|
$
|
38.6
|
$
|
(39.6
|
)
|
$
|
28.4
|
|||||||||
Investing Activities:
|
||||||||||||||||||||
Capital expenditures
|
-
|
-
|
(301.9
|
)
|
-
|
(301.9
|
)
|
|||||||||||||
Advances to affiliates, net
|
(12.1
|
)
|
(39.2
|
)
|
(15.7
|
)
|
67.0
|
-
|
||||||||||||
Distribution from consolidated subsidiary
|
46.2
|
-
|
-
|
(46.2
|
)
|
-
|
||||||||||||||
Investment in consolidated subsidiary
|
-
|
(85.0
|
)
|
-
|
85.0
|
-
|
||||||||||||||
Sales of short-term investments
|
-
|
175.0
|
-
|
-
|
175.0
|
|||||||||||||||
Net Cash (Used in) Provided by Investing Activities
|
34.1
|
50.8
|
(317.6
|
)
|
105.8
|
(126.9
|
)
|
|||||||||||||
Financing Activities:
|
||||||||||||||||||||
Proceeds from borrowings on revolving credit agreement
|
-
|
-
|
161.5
|
-
|
161.5
|
|||||||||||||||
Payments on notes payable
|
(0.3
|
)
|
-
|
-
|
-
|
(0.3
|
)
|
|||||||||||||
Contribution from parent
|
-
|
-
|
85.0
|
(85.0
|
)
|
-
|
||||||||||||||
Distributions paid
|
(85.8
|
)
|
(85.8
|
)
|
-
|
85.8
|
(85.8
|
)
|
||||||||||||
Advances from affiliates, net
|
-
|
27.8
|
39.2
|
(67.0
|
)
|
-
|
||||||||||||||
Net Cash Provided by (Used in) Financing Activities
|
(86.1
|
)
|
(58.0
|
)
|
285.7
|
(66.2
|
)
|
75.4
|
||||||||||||
Increase (decrease) in Cash and Cash Equivalents
|
-
|
(29.8
|
)
|
6.7
|
-
|
(23.1
|
)
|
|||||||||||||
Cash and Cash Equivalents at Beginning of Period
|
-
|
137.6
|
0.1
|
-
|
137.7
|
|||||||||||||||
Cash and Cash Equivalents at End of
Period
|
$
|
-
|
$
|
107.8
|
$
|
6.8
|
$
|
-
|
$
|
114.6
|
Estimated
Total Cost
(1)
|
Cash Invested through
March 31, 2010
|
|||||||
Haynesville Project
|
$ | 185 | $ | 20.4 | ||||
Clarence Compression
|
30 | - | ||||||
Total
|
$ | 215 | $ | 20.4 |
(1)
|
Our estimated total capital expenditures are based on internally developed financial models and timelines.
|
Total
|
Less than 1 Year
|
1-3 Years
|
4-5 Years
|
More than 5 Years
|
||||||||||||||||
Principal payments on long-term debt (1)
|
$ | 3,238.5 | $ | - | $ | 1,003.5 | $ | 250.0 | $ | 1,985.0 | ||||||||||
Interest on long-term debt (2)
|
985.7 | 105.2 | 291.2 | 227.9 | 361.4 | |||||||||||||||
Capital commitments (3)
|
54.4 | 54.4 | - | - | - | |||||||||||||||
Total
|
$ | 4,278.6 | $ | 159.6 | $ | 1,294.7 | $ | 477.9 | $ | 2,346.4 |
(1)
|
Includes our senior unsecured notes, having maturity dates from 2012 to 2027, and $678.5 million of loans outstanding under our revolving credit facility, having a maturity date of June 29, 2012, and our Subordinated Loans, which mature initially on December 29, 2012. The revolving credit facility and Subordinated Loans are extendable by us on the same terms for an additional year.
|
(2)
|
Interest obligations represent interest due on our senior unsecured notes at fixed rates. Future interest obligations under our revolving credit facility are uncertain, due to the variable interest rate and fluctuating balances. Based on a 0.49% weighted-average interest rate on amounts outstanding under our revolving credit facility as of March 31, 2010, $2.5 million and $5.0 million would be due under the credit facility in less than one year and 1-3 years.
|
(3)
|
Capital commitments represent binding commitments under purchase orders for materials ordered but not received and firm commitments under binding construction service agreements existing at March 31, 2010. The amounts shown do not reflect commitments we have made after March 31, 2010. For information on these projects, see
Growth Capital Expenditures
.
|
·
|
our ability to maintain or replace expiring gas transportation and storage contracts including the impact of new pipelines or new gas supply sources on the pricing of our services and our ability to re-contract with customers;
|
·
|
the timing, cost, scope and financial performance of our recent and future expansion and growth projects, including our ability to operate our East Texas Pipeline, Southeast Expansion, Gulf Crossing Pipeline and Fayetteville Lateral at higher than normal operating pressures;
|
·
|
volatility or disruptions in the capital or financial markets;
|
·
|
the impact of FERC rate-making policies and actions on the services we offer and the rates we charge and our ability to recover the full cost of operating our pipelines, including earning a reasonable return;
|
·
|
the impact of laws and regulations, including changes to laws and regulations, such as the proposed greenhouse gas legislation, on our business, including our costs, liabilities and revenues;
|
·
|
operational hazards, litigation and unforeseen interruptions for which we may not have adequate or appropriate insurance coverage;
|
·
|
the cost of insuring our assets may increase dramatically;
|
·
|
our ability to access new sources of natural gas and the impact on us of any future decreases in supplies of natural gas in our supply areas; and
|
·
|
the impact on our system throughput and revenues from changes in the supply of and demand for natural gas, including as a result of commodity price changes.
|
Exhibit
Number
|
Description
|
*10.1
|
Boardwalk Operating GP, LLC Short-Term Incentive Plan
|
|
*31.1
|
Certification of Rolf A. Gafvert, Chief Executive Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a).
|
|
*31.2
|
Certification of Jamie L. Buskill, Chief Financial Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a).
|
|
*32.1
|
Certification of Rolf A. Gafvert, Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
*32.2
|
Certification of Jamie L. Buskill, Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Extension Definitions Document
|
|
101.LAB
|
XBRL Taxonomy Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase Document
|
|
* Filed herewith
|
Boardwalk Pipeline Partners, LP
|
||||
By: Boardwalk GP, LP
|
||||
its general partner
|
||||
By: Boardwalk GP, LLC
|
||||
its general partner
|
||||
Dated: April 27, 2010
|
By:
|
/s/ Jamie L. Buskill
|
||
Jamie L. Buskill
|
||||
Senior Vice President, Chief Financial Officer and Treasurer
|
Measure
|
Objectives
|
Operational
|
Operate without a significant safety incident and provide reliable firm transportation and storage service.
|
Financial
|
Deliver strong financial performance as measured by key financial metrics including distributable cash, return on investment, and EBITDA.
|
Capital Projects
|
Successfully complete capital projects in a timely and cost effective manner.
|
Asset Utilization
|
Utilize Boardwalk’s assets to improve operating efficiencies and maximize growth opportunities.
|
Contracts
|
Successfully renegotiate or remarket existing contracts that are terminating.
|
Growth
|
Pursue growth projects, while managing risk, allowing for the long-term stable growth of distributions to our investors.
|
1)
|
I have reviewed this Quarterly Report on Form 10-Q of Boardwalk Pipeline Partners, LP;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations or cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated: April 27, 2010
|
/s/ Rolf A. Gafvert
|
||
Rolf A. Gafvert
|
|||
President, Chief Executive Officer and Director
|
1)
|
I have reviewed this Quarterly Report on Form 10-Q of Boardwalk Pipeline Partners, LP;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations or cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated: April 27, 2010
|
/s/ Jamie L. Buskill
|
||
Jamie L. Buskill
|
|||
Senior Vice President, Chief Financial Officer and Treasurer
|