HOUSTON, Aug. 2, 2016 /PRNewswire/ -- Columbia Pipeline Partners LP (NYSE: CPPL) ("CPPL" or the "Partnership") today reported financial and operating results for the second quarter 2016.
CPPL reported net income attributable to limited partners of $18.1 million, or $0.18 per common unit compared with net income attributable to limited partners of $16.3 million, or $0.17 per common unit in the prior-year period. CPPL reported net cash flows from operating activities of $177.2 million compared with $151.2 million in the prior-year period. Additionally, CPPL reported net cash flows used for investing activities and net cash flows from financing activities of $264.3 million and $107.9 million, respectively, compared to $93.3 million and $71.0 million, respectively, in the prior-year period. CPPL reported Adjusted EBITDA attributable to the Partnership (a non-GAAP measure) of $24.7 million for the second quarter compared with $21.3 million in the prior-year period. CPPL generated Distributable Cash Flow (a non-GAAP measure) of $15.5 million for the second quarter compared with $12.5 million in the prior-year period and declared a distribution of $0.1975 per unit on August 1, 2016. The Distribution Coverage Ratio (a non-GAAP measure) for the year-to-date period is 1.17x compared with 1.09x in the prior-year period. Please see the definitions of such non-GAAP measures in the "Non-GAAP Financial Measures" section of this press release and a reconciliation to their most comparable measure calculated in accordance with GAAP on Schedule 1 of the financial tables below.
As previously announced, on March 17, 2016, Columbia Pipeline Group, Inc. ("CPG"), formerly the ultimate parent of CPPL's general partner, entered into an agreement and plan of merger to be acquired by a subsidiary of TransCanada Corporation (NYSE: TRP) ("TransCanada"). Effective July 1, 2016, CPG became an indirect, wholly owned subsidiary of TransCanada. With the completion of the transaction, TransCanada now owns the general partner of the Partnership, all of the Partnership's incentive distribution rights and all of the Partnership's subordinated units, which represent a 46.5% limited partnership interest in the Partnership.
Presentation of Financial Statements
CPPL's consolidated financial statements include the accounts of CPPL and its consolidated subsidiary, CPG OpCo LP ("Columbia OpCo"). CPPL holds a 15.7% limited partner interest and a non-economic general partner interest in Columbia OpCo. CPPL controls Columbia OpCo through the ownership of its general partner and, accordingly, CPPL consolidates Columbia OpCo in its consolidated financial statements. Columbia Energy Group (a wholly owned subsidiary of CPG), CPPL's sponsor, owns the remaining 84.3% limited partner interest in Columbia OpCo, which is reflected as a non-controlling interest in CPPL's financial statements.
Three Months Ended June 30, 2016 Operating Results
A comparison of operating results for the three months ended June 30, 2016 to the three months ended June 30, 2015 is summarized below.
Operating revenues decreased by $2.4 million. The decrease was primarily due to a decrease in trackers, which are offset in expense, and lower mineral rights royalty revenue. These decreases were partially offset by higher demand margin revenue from growth projects placed into service and increased shorter term transportation services.
Operating expenses decreased by $20.3 million. The decrease was primarily due to a decrease in trackers, which are offset in revenue. This decrease was partially offset by decreased gains on the conveyances of mineral interests, higher depreciation and amortization and increased employee and administrative expenses.
Equity earnings increased by $2.3 million, primarily due to earnings generated by Millennium Pipeline Company, L.L.C. resulting from increased demand margin revenue.
Other income (deductions) for the three months ended June 30, 2016 increased income by $1.0 million compared with a reduction in income of $1.4 million in the same period in 2015. The variance was primarily due to an increase in Allowance for Funds Used During Construction ("AFUDC"), partially offset by lower interest income.
Six Months Ended June 30, 2016 Operating Results
A comparison of operating results for the six months ended June 30, 2016 to the six months ended June 30, 2015 is summarized below. Earnings for the periods prior to the date of CPPL's initial public offering are derived from the financial statements and accounting records of CPPL's predecessor.
Operating revenues increased by $21.9 million. The increase was primarily due to higher demand margin revenue from growth projects placed into service and increased shorter term transportation services. These increases were partially offset by a decrease in trackers, which are offset in expense, and lower mineral rights royalty revenue.
Operating expenses decreased by $15.0 million. The decrease was primarily due to a decrease in trackers, which are offset in revenues, and lower maintenance expenses. These decreases were partially offset by higher depreciation and amortization, decreased gains on the conveyances of mineral interests, increased employee and administrative expenses, higher outside service costs and increased property and other taxes.
Equity earnings increased by $3.2 million, primarily due to earnings generated by Pennant Midstream, LLC.
Other income (deductions) for the six months ended June 30, 2016 reduced income by $0.7 million compared with a reduction in income of $8.5 million in the same period in 2015. The variance was primarily due to an increase in AFUDC and a decrease in interest expense resulting from the repayment of long-term debt, partially offset by lower interest income.
Non-GAAP Financial Measures
Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio
We define Adjusted EBITDA as net income before interest expense, income taxes, and depreciation and amortization, plus distributions of earnings received from equity investees, less equity earnings in unconsolidated affiliates and other, net. In addition, to the extent transactions occur that are considered unusual, infrequent or not representative of underlying trends, we will remove the effect of these items from Adjusted EBITDA. Examples of these transactions include impairments. We define Distributable Cash Flow as Adjusted EBITDA less interest expense, maintenance capital expenditures, gain on sale of assets and distributable cash flow attributable to noncontrolling interest, plus proceeds from sale of assets, interest income, capital (received) costs related to the separation and any other known differences between cash and income. We define Distribution Coverage Ratio as distributable cash flow divided by the total amount of cash distributions paid to the partners of CPPL with respect to such period.
Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are non-GAAP supplemental financial measures that management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
Management believes that the presentations of Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio will provide useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA and Distributable Cash Flow are Net Income and Net Cash Flows from Operating Activities. Our non-GAAP financial measures of Adjusted EBITDA and Distributable Cash Flow should not be considered as an alternative to GAAP Net Income or Net Cash Flows from Operating Activities. Adjusted EBITDA and Distributable Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash flows from operating activities. You should not consider Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio may be defined differently by other companies in our industry, our definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
About Columbia Pipeline Partners LP
Columbia Pipeline Partners LP is a Delaware master limited partnership with interests in three regulated U.S. natural gas pipelines which serve markets extending from New York to the Gulf of Mexico, as well as storage and related midstream assets. The Partnership's general partner became an indirect, wholly-owned subsidiary of TransCanada Corporation (NYSE:TRP) on July 1, 2016, and as a result, the Partnership is effectively managed by TransCanada. For more information about Columbia Pipeline Partners LP, visit the Partnership's website at www.columbiapipelinepartners.com. Additional information can be found at www.transcanada.com.
Forward-Looking Statements
Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are statements other than historical facts and that frequently use words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "position," "should," "strategy," "target," "will" and similar words. All such forward-looking statements speak only as of the date of this release. Although CPPL believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved and such statements are subject to various risks and uncertainties. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecasted in such statements and readers are cautioned not to place undue reliance on such statements. CPPL's business may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond CPPL's control. These factors include, but are not limited to, the occurrence of any event, change or other circumstance in connection with the recent merger between CPG and TransCanada; risks related to disruption of management's attention from CPPL's ongoing business operations due to the recent merger; and risks associated with the loss and ongoing replacement of key personnel; risks relating to unanticipated costs of integration in connection with the merger, including operating costs, customer loss or business disruption being greater than expected; changes in general economic conditions; competitive conditions in our industry; actions taken by third-party operators, processors and transporters; the demand for natural gas storage and transportation services; our ability to successfully implement our business plan; our ability to complete internal growth projects on time and on budget; the price and availability of debt and equity financing; the availability and price of natural gas to the consumer compared with the price of alternative and competing fuels; competition from the same and alternative energy sources; energy efficiency and technology trends; operating hazards and other risks incidental to transporting, storing and gathering natural gas; natural disasters, weather-related delays, casualty losses, acts of war and terrorism and other matters beyond our control; interest rates; labor relations; large customer defaults; changes in the availability and cost of capital; changes in tax status; the effects of existing and future laws and governmental regulations; and the effects of future litigation, including litigation relating to CPG's merger with TransCanada. We caution that the foregoing list of factors is not exhaustive. Additional information about these and other factors can be found in CPPL's Annual Report on Form 10-K filed with the SEC for the fiscal year ended December 31, 2015, as amended, and CPPL's Quarterly Report on Form 10-Q filed with the SEC for the quarter ended March 31, 2016 and CPPL's other filings with the SEC, which are available at http://www.sec.gov. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. CPPL expressly disclaims any obligation to update, amend or clarify any forward-looking statement to reflect events, new information or circumstances occurring after the date of this release except as required by applicable law.
Columbia Pipeline Partners LP | |||||||||||
Statements of Consolidated and Combined Operations (GAAP) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended |
Six Months Ended | ||||||||||
June 30, |
June 30, | ||||||||||
(in millions, except per unit amounts) |
2016 |
2015 |
2016 |
2015 | |||||||
Operating Revenues |
|||||||||||
Transportation revenues |
$ 258.8 |
$ 237.3 |
$ 566.6 |
$ 485.2 | |||||||
Transportation revenues-affiliated |
- |
18.4 |
- |
47.1 | |||||||
Storage revenues |
48.9 |
36.2 |
98.8 |
72.8 | |||||||
Storage revenues-affiliated |
- |
12.9 |
- |
26.2 | |||||||
Other revenues |
5.5 |
10.8 |
11.3 |
23.5 | |||||||
Total Operating Revenues |
313.2 |
315.6 |
676.7 |
654.8 | |||||||
Operating Expenses |
|||||||||||
Operation and maintenance |
106.1 |
138.0 |
205.3 |
248.0 | |||||||
Operation and maintenance-affiliated |
39.5 |
38.6 |
81.9 |
74.7 | |||||||
Depreciation and amortization |
37.7 |
33.0 |
75.3 |
65.3 | |||||||
Gain on sale of assets |
(3.4) |
(8.3) |
(6.0) |
(13.6) | |||||||
Property and other taxes |
20.2 |
19.1 |
41.0 |
38.1 | |||||||
Total Operating Expenses |
200.1 |
220.4 |
397.5 |
412.5 | |||||||
Equity Earnings in Unconsolidated Affiliates |
16.3 |
14.0 |
32.1 |
28.9 | |||||||
Operating Income |
129.4 |
109.2 |
311.3 |
271.2 | |||||||
Other Income (Deductions) |
|||||||||||
Interest expense |
(1.9) |
- |
(2.5) |
- | |||||||
Interest expense-affiliated |
(7.0) |
(6.3) |
(14.2) |
(17.7) | |||||||
Other, net |
9.9 |
4.9 |
16.0 |
9.2 | |||||||
Total Other Income (Deductions), net |
1.0 |
(1.4) |
(0.7) |
(8.5) | |||||||
Income before Income Taxes |
130.4 |
107.8 |
310.6 |
262.7 | |||||||
Income Taxes |
0.1 |
- |
0.1 |
23.7 | |||||||
Net Income |
130.3 |
107.8 |
310.5 |
239.0 | |||||||
Less: Predecessor net income prior to IPO on February 11, 2015 |
- |
- |
- |
42.7 | |||||||
Net income subsequent to IPO |
130.3 |
107.8 |
310.5 |
196.3 | |||||||
Less: Net income attributable to noncontrolling interest in Columbia |
112.2 |
91.5 |
265.1 |
166.7 | |||||||
Net income attributable to limited partners subsequent to IPO |
$ 18.1 |
$ 16.3 |
$ 45.4 |
$ 29.6 | |||||||
Net income attributable to partners' ownership interest |
|||||||||||
Common units |
$ 0.18 |
$ 0.17 |
$ 0.43 |
$ 0.30 | |||||||
Subordinated units |
0.18 |
0.16 |
0.43 |
0.29 | |||||||
Weighted average limited partner units outstanding (basic and diluted) |
|||||||||||
Common units |
53.8 |
53.8 |
53.8 |
53.8 | |||||||
Subordinated units |
46.8 |
46.8 |
46.8 |
46.8 | |||||||
Throughput (MMDth) |
|||||||||||
Columbia Gas Transmission |
375.9 |
315.1 |
920.3 |
812.4 | |||||||
Columbia Gulf |
116.1 |
137.3 |
269.1 |
283.0 | |||||||
Total |
492.0 |
452.4 |
1,189.4 |
1,095.4 |
Columbia Pipeline Partners LP | |||||||||||
Schedule 1 - Non-GAAP Reconciliation of Adjusted EBITDA and Distributable Cash Flow | |||||||||||
(unaudited) | |||||||||||
Three Months Ended |
Six Months Ended | ||||||||||
June 30, |
June 30, | ||||||||||
(in millions) |
2016 |
2015 |
2016 |
2015 | |||||||
Net Income |
$ 130.3 |
$ 107.8 |
$ 310.5 |
$ 239.0 | |||||||
Add: |
|||||||||||
Interest expense |
1.9 |
- |
2.5 |
- | |||||||
Interest expense-affiliated |
7.0 |
6.3 |
14.2 |
17.7 | |||||||
Income taxes |
0.1 |
- |
0.1 |
23.7 | |||||||
Depreciation and amortization |
37.7 |
33.0 |
75.3 |
65.3 | |||||||
Distributions of earnings received from equity investees |
12.1 |
9.6 |
31.0 |
27.9 | |||||||
Less: |
|||||||||||
Equity earnings in unconsolidated affiliates |
16.3 |
14.0 |
32.1 |
28.9 | |||||||
Other, net |
9.9 |
4.9 |
16.0 |
9.2 | |||||||
Adjusted EBITDA |
$ 162.9 |
$ 137.8 |
$ 385.5 |
$ 335.5 | |||||||
Less: |
|||||||||||
Adjusted EBITDA attributable to Predecessor prior to IPO |
- |
- |
- |
79.4 | |||||||
Adjusted EBITDA attributable to noncontrolling interest in |
138.2 |
116.5 |
326.5 |
216.6 | |||||||
Adjusted EBITDA attributable to Partnership subsequent to IPO |
$ 24.7 |
$ 21.3 |
$ 59.0 |
$ 39.5 | |||||||
Net Cash Flows from Operating Activities |
$ 177.2 |
$ 151.2 |
$ 309.1 |
$ 324.9 | |||||||
Interest expense |
1.9 |
- |
2.5 |
- | |||||||
Interest expense-affiliated |
7.0 |
6.3 |
14.2 |
17.7 | |||||||
Current taxes |
0.1 |
- |
0.1 |
13.2 | |||||||
Gain on sale of assets |
3.4 |
8.3 |
6.0 |
13.6 | |||||||
Other adjustments to operating cash flows |
(2.3) |
3.7 |
(1.1) |
(4.5) | |||||||
Changes in assets and liabilities |
(24.4) |
(31.7) |
54.7 |
(29.4) | |||||||
Adjusted EBITDA |
$ 162.9 |
$ 137.8 |
$ 385.5 |
$ 335.5 | |||||||
Less: |
|||||||||||
Adjusted EBITDA attributable to Predecessor prior to IPO |
- |
- |
- |
79.4 | |||||||
Adjusted EBITDA attributable to noncontrolling interest in |
138.2 |
116.5 |
326.5 |
216.6 | |||||||
Adjusted EBITDA attributable to Partnership subsequent to IPO |
$ 24.7 |
$ 21.3 |
$ 59.0 |
$ 39.5 | |||||||
Adjusted EBITDA |
$ 162.9 |
$ 137.8 |
$ 385.5 |
$ 335.5 | |||||||
Less: |
|||||||||||
Interest expense |
8.9 |
6.3 |
16.7 |
17.7 | |||||||
Maintenance capital expenditures |
37.7 |
49.5 |
52.6 |
68.0 | |||||||
Separation maintenance capital expenditures |
- |
0.6 |
- |
2.7 | |||||||
Gain on sale of assets |
3.4 |
8.3 |
6.0 |
13.6 | |||||||
Distributable cash flow attributable to Predecessor prior to IPO |
- |
- |
- |
67.8 | |||||||
Distributable cash flow attributable to noncontrolling interest subsequent to IPO |
97.6 |
70.0 |
265.1 |
159.0 | |||||||
Add: |
|||||||||||
Proceeds from sales of assets |
0.1 |
8.8 |
0.1 |
19.0 | |||||||
Interest income |
0.1 |
- |
0.3 |
- | |||||||
Capital costs related to Separation |
- |
0.6 |
- |
2.7 | |||||||
Distributable Cash Flow |
$ 15.5 |
$ 12.5 |
$ 45.5 |
$ 28.4 |
Columbia Pipeline Partners LP | |||||||
Consolidated Balance Sheets (GAAP) | |||||||
(unaudited) | |||||||
June 30, |
December 31, | ||||||
(in millions) |
2016 |
2015 | |||||
ASSETS |
|||||||
Current Assets |
|||||||
Cash and cash equivalents |
$ 55.0 |
$ 78.9 | |||||
Accounts receivable (less reserve of $0.3 and $0.3, respectively) |
161.1 |
145.9 | |||||
Accounts receivable-affiliated |
102.0 |
149.4 | |||||
Materials and supplies, at average cost |
26.5 |
32.8 | |||||
Exchange gas receivable |
11.2 |
18.8 | |||||
Deferred property taxes |
36.4 |
52.0 | |||||
Prepayments and other |
33.2 |
33.8 | |||||
Total Current Assets |
425.4 |
511.6 | |||||
Investments |
|||||||
Unconsolidated affiliates |
440.2 |
437.1 | |||||
Other investments |
1.8 |
1.8 | |||||
Total Investments |
442.0 |
438.9 | |||||
Property, Plant and Equipment |
|||||||
Property, plant and equipment |
9,670.9 |
8,930.9 | |||||
Accumulated depreciation and amortization |
(3,023.4) |
(2,960.1) | |||||
Net Property, Plant and Equipment |
6,647.5 |
5,970.8 | |||||
Other Noncurrent Assets |
|||||||
Regulatory assets |
129.9 |
134.1 | |||||
Goodwill |
1,975.5 |
1,975.5 | |||||
Postretirement and postemployment benefits assets |
124.2 |
120.5 | |||||
Deferred charges and other |
10.1 |
10.6 | |||||
Total Other Noncurrent Assets |
2,239.7 |
2,240.7 | |||||
Total Assets |
$ 9,754.6 |
$ 9,162.0 |
Columbia Pipeline Partners LP | |||||||
Consolidated Balance Sheets (GAAP) (continued) | |||||||
(unaudited) | |||||||
June 30, |
December 31, | ||||||
(in millions, except unit amounts) |
2016 |
2015 | |||||
LIABILITIES AND EQUITY |
|||||||
Current Liabilities |
|||||||
Short-term borrowings |
$ - |
$ 15.0 | |||||
Short-term borrowings-affiliated |
658.2 |
42.1 | |||||
Accounts payable |
105.4 |
49.9 | |||||
Accounts payable-affiliated |
28.7 |
86.3 | |||||
Customer deposits |
15.3 |
17.8 | |||||
Taxes accrued |
94.8 |
108.2 | |||||
Exchange gas payable |
11.2 |
18.2 | |||||
Deferred revenue |
6.6 |
15.0 | |||||
Accrued capital expenditures |
132.7 |
95.9 | |||||
Accrued compensation and related costs |
26.0 |
26.6 | |||||
Other accruals |
61.9 |
43.8 | |||||
Total Current Liabilities |
1,140.8 |
518.8 | |||||
Noncurrent Liabilities |
|||||||
Long-term debt-affiliated |
630.9 |
630.9 | |||||
Deferred income taxes |
1.0 |
1.0 | |||||
Accrued liability for postretirement and postemployment benefits |
33.5 |
36.1 | |||||
Regulatory liabilities |
284.4 |
309.7 | |||||
Asset retirement obligations |
23.9 |
25.3 | |||||
Other noncurrent liabilities |
65.3 |
63.5 | |||||
Total Noncurrent Liabilities |
1,039.0 |
1,066.5 | |||||
Total Liabilities |
2,179.8 |
1,585.3 | |||||
Commitments and Contingencies |
|||||||
Equity and Partners' Capital |
|||||||
Common unitholders-public (53,846,446 and 53,834,784 units issued and |
963.0 |
958.5 | |||||
Subordinated unitholders-CEG (46,811,398 units issued and outstanding) |
307.9 |
304.0 | |||||
Accumulated other comprehensive loss |
(3.8) |
(4.0) | |||||
Total Columbia Pipeline Partners LP partners' equity and capital |
1,267.1 |
1,258.5 | |||||
Noncontrolling Interest in Columbia OpCo |
6,307.7 |
6,318.2 | |||||
Total Equity and Partners' Capital |
7,574.8 |
7,576.7 | |||||
Total Liabilities and Equity and Partners' Capital |
$ 9,754.6 |
$ 9,162.0 |
Columbia Pipeline Partners LP | |||||||
Statements of Consolidated and Combined Cash Flows (GAAP) | |||||||
(unaudited) | |||||||
Six Months Ended June 30, (in millions) |
2016 |
2015 | |||||
Operating Activities |
|||||||
Net Income |
$ 310.5 |
$ 239.0 | |||||
Adjustments to Reconcile Net Income to Net Cash from Operating Activities: |
|||||||
Depreciation and amortization |
75.3 |
65.3 | |||||
Deferred income taxes and investment tax credits |
- |
10.5 | |||||
Deferred revenue |
(2.4) |
(0.1) | |||||
Equity-based compensation expense and profit sharing contribution |
1.8 |
3.6 | |||||
Gain on sale of assets |
(6.0) |
(13.6) | |||||
Equity earnings in unconsolidated affiliates |
(32.1) |
(28.9) | |||||
Amortization of debt related costs |
1.6 |
0.2 | |||||
AFUDC equity |
(15.9) |
(8.4) | |||||
Distributions of earnings received from equity investees |
31.0 |
27.9 | |||||
Changes in Assets and Liabilities: |
|||||||
Accounts receivable |
(9.1) |
13.9 | |||||
Accounts receivable-affiliated |
6.7 |
17.1 | |||||
Accounts payable |
2.7 |
1.0 | |||||
Accounts payable-affiliated |
(59.1) |
(14.7) | |||||
Customer deposits |
(2.5) |
1.0 | |||||
Taxes accrued |
(13.5) |
(10.2) | |||||
Exchange gas receivable/payable |
0.6 |
0.3 | |||||
Other accruals |
2.3 |
(4.5) | |||||
Prepayments and other current assets |
22.7 |
17.0 | |||||
Regulatory assets/liabilities |
(2.3) |
25.5 | |||||
Postretirement and postemployment benefits |
(2.3) |
(13.5) | |||||
Deferred charges and other noncurrent assets |
(4.8) |
(1.9) | |||||
Other noncurrent liabilities |
3.9 |
(1.6) | |||||
Net Cash Flows from Operating Activities |
309.1 |
324.9 | |||||
Investing Activities |
|||||||
Capital expenditures |
(656.6) |
(430.6) | |||||
Insurance recoveries |
- |
2.1 | |||||
Change in short-term lendings-affiliated |
40.7 |
(527.1) | |||||
Proceeds from disposition of assets |
0.1 |
19.0 | |||||
Contributions to equity investees |
(1.9) |
- | |||||
Distributions from equity investees |
0.8 |
2.2 | |||||
Other investing activities |
(3.6) |
(13.4) | |||||
Net Cash Flows used for Investing Activities |
(620.5) |
(947.8) | |||||
Financing Activities |
|||||||
Change in short-term borrowings |
(15.0) |
20.0 | |||||
Change in short-term borrowings-affiliated |
615.9 |
(180.2) | |||||
Payments of long-term debt-affiliated, including current portion |
- |
(957.8) | |||||
Proceeds from the issuance of common units, net of offering costs |
- |
1,168.4 | |||||
Distribution of IPO proceeds to parent |
- |
(500.0) | |||||
Contribution of capital from parent |
- |
1,217.3 | |||||
Quarterly distributions to unitholders |
(37.0) |
(9.2) | |||||
Distribution to noncontrolling interest in Columbia OpCo |
(276.4) |
- | |||||
Net Cash Flows from Financing Activities |
287.5 |
758.5 | |||||
Change in cash and cash equivalents |
(23.9) |
135.6 | |||||
Cash and cash equivalents at beginning of period |
78.9 |
0.5 | |||||
Cash and Cash Equivalents at End of Period |
$ 55.0 |
$ 136.1 |
SOURCE Columbia Pipeline Partners LP
HOUSTON, Aug. 1, 2016 /PRNewswire/ -- The Board of Directors of CPP GP LLC, as general partner of Columbia Pipeline Partners LP (NYSE: CPPL) ("CPPL" or the "Partnership"), today approved a quarterly distribution payment of $0.1975 per unit for CPPL, payable on August 19, 2016, to both common and subordinated unit holders of record at the close of business on August 12, 2016. This distribution represents an approximately 5.3 percent increase over the prior quarter's distribution of $0.1875 per unit.
1446 Qualified Notice
This notice is intended to serve as qualified notice to nominees pursuant to Treasury Regulation 1.1446-4(b). All of the partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the partnership's distributions to foreign investors are subject to U.S. federal income tax withholding at the highest applicable effective tax rate.
About Columbia Pipeline Partners LP
Columbia Pipeline Partners LP is a Delaware master limited partnership with interests in three regulated U.S. natural gas pipelines which serve markets extending from New York to the Gulf of Mexico, as well as storage and related midstream assets. The Partnership's general partner became an indirect, wholly-owned subsidiary of TransCanada Corporation (NYSE:TRP) on July 1, 2016, and as a result, the Partnership is effectively managed by TransCanada. For more information about Columbia Pipeline Partners LP, visit the Partnership's website at www.columbiapipelinepartners.com. Additional information can be found at www.transcanada.com.
Forward Looking Statements
This release may include "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Partnership's control. All statements, other than historical facts included in this release, are forward-looking statements. All forward-looking statements speak only as of the date of this release. Although the Partnership believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.
The Partnership's business may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond the Partnership's control. These factors include, but are not limited to, changes to business plans as circumstances warrant. For a full discussion of these risks and uncertainties and other factors, please refer to the Partnership's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the Securities and Exchange Commission (the SEC), as updated and supplemented by subsequent filings with the SEC. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. CPPL expressly disclaims any obligation to update, amend or clarify any forward looking statement to reflect events, new information or circumstances occurring after the date of this release except as required by applicable law.
SOURCE Columbia Pipeline Partners LP
HOUSTON, May 3, 2016 /PRNewswire/ -- Columbia Pipeline Partners LP (NYSE: CPPL) ("CPPL" or the "Partnership"), a Columbia Pipeline Group, Inc. (NYSE: CPGX) ("CPG") company, today reported financial and operating results for the first quarter 2016.
CPPL reported net income attributable to limited partners of $27.3 million, or $0.25 per common unit compared with net income attributable to limited partners of $13.3 million, or $0.13 per common unit in the prior-year period. CPPL reported Adjusted EBITDA attributable to the Partnership (a non-GAAP measure) of $34.3 million for the first quarter compared with $18.2 million in the prior-year period. CPPL generated Distributable Cash Flow (a non-GAAP measure) of $30.0 million for the first quarter compared with $15.9 million in the prior-year period and declared a distribution of $0.1875 per unit on May 2, 2016. The distribution coverage ratio (a non-GAAP measure) for the year-to-date period is 1.59x compared with 1.73x in the prior-year period. Please see the definitions of such non-GAAP measures in the "Non-GAAP Financial Measures" section of this press release and a reconciliation to their most comparable measure calculated in accordance with GAAP on Schedule 1 of the financial tables below.
"Columbia Pipeline Partners delivered another solid quarter squarely in line with our expectations," said Robert C. Skaggs Jr., chairman and chief executive officer of CPP GP LLC, the general partner of CPPL. "The execution of our deep investment backlog continues to progress and remains on time and on budget."
As previously announced, on March 17, 2016, CPG, the ultimate parent of CPPL's general partner, entered into an agreement and plan of merger to be acquired by a subsidiary of TransCanada Corporation (NYSE: TRP). The acquisition is expected to close in the second half of 2016. Upon closing of the transaction, CPPL will remain a publicly traded partnership.
Presentation of Financial Statements
CPPL's consolidated financial statements include the accounts of CPPL and its consolidated subsidiary, CPG OpCo LP ("Columbia OpCo"). CPPL holds a 15.7% limited partner interest and a non-economic general partner interest in Columbia OpCo. CPPL controls Columbia OpCo through the ownership of its general partner and, accordingly, CPPL consolidates Columbia OpCo in its consolidated financial statements. Columbia Energy Group (a wholly owned subsidiary of CPG), CPPL's sponsor, owns the remaining 84.3% limited partner interest in Columbia OpCo, which is reflected as a non-controlling interest in CPPL's financial statements.
Balance Sheet
CPPL has a $500.0 million revolving credit facility, under which $15.0 million was drawn as of March 31, 2016.
Growth and Modernization Capital Expenditures
Growth and Modernization capital expenditures totaled $362.9 million for the first quarter. These expenditures were mostly attributable to the Leach XPress, Rayne XPress and Cameron Access projects, as well as the Columbia Gas Transmission modernization program.
Three Months Ended March 31, 2016 Operating Results
A comparison of operating results for the three months ended March 31, 2016 to the three months ended March 31, 2015 is summarized below. Earnings for the periods prior to the date of CPPL's initial public offering are derived from the financial statements and accounting records of CPPL's predecessor.
Operating revenues, excluding the impact of a $10.1 million decrease in trackers, which is offset in expense, increased by $34.4 million. The increase was primarily due to higher demand margin revenue from growth projects placed into service, partially offset by a decrease in mineral rights royalty revenue.
Operating expenses, excluding the impact of a $10.1 million decrease in trackers, which is offset in revenues, increased by $15.4 million. The increase was primarily due to higher depreciation and amortization, increased employee and administrative expenses, higher outside service costs, decreased gains on the conveyances of mineral interests and higher property and other taxes. These variances were partially offset by decreased maintenance expenses.
Equity earnings increased by $0.9 million.
Other income (deductions) for the first quarter of 2016 reduced income by $1.7 million compared with a reduction in income of $7.1 million in the same period in 2015. The variance was primarily due to a decrease in interest expense resulting from the repayment of long-term debt and an increase in Allowance for Funds Used During Construction, partially offset by lower interest income.
Non-GAAP Financial Measures
Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio
We define Adjusted EBITDA as net income before interest expense, income taxes, and depreciation and amortization, plus distributions of earnings received from equity investees, less equity earnings in unconsolidated affiliates and other, net. In addition, to the extent transactions occur that are considered unusual, infrequent or not representative of underlying trends, we will remove the effect of these items from Adjusted EBITDA. Examples of these transactions include impairments. We define Distributable Cash Flow as Adjusted EBITDA less interest expense, maintenance capital expenditures, gain on sale of assets and distributable cash flow attributable to noncontrolling interest plus proceeds from sale of assets, interest income, capital (received) costs related to the separation and any other known differences between cash and income. We define Distribution Coverage Ratio as the ratio of distributable cash flow per outstanding unit (as of the end of the period) to cash distributions payable per outstanding unit with respect to such period.
Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are non-GAAP supplemental financial measures that management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
We believe that the presentations of Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio will provide useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA and Distributable Cash Flow are Net Income and Net Cash Flows from Operating Activities. Our non-GAAP financial measures of Adjusted EBITDA and Distributable Cash Flow should not be considered as an alternative to GAAP Net Income or Net Cash Flows from Operating Activities. Adjusted EBITDA and Distributable Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash flows from operating activities. You should not consider Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio may be defined differently by other companies in our industry, our definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Columbia Pipeline Partners LP Files 2015 10-K
CPPL filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as amended, with the Securities Exchange Commission ("SEC") on February 18, 2016. A copy of the Form 10-K may be found on CPPL's website, www.columbiapipelinepartners.com, by selecting "Investors", "Financial Results & Filings" and then "SEC Filings." CPPL unitholders may receive hard copies of this document free of charge upon request by emailing ir@cpg.com.
About Columbia Pipeline Partners LP
Columbia Pipeline Partners LP, based in Houston, Texas, is a fee-based, growth-oriented master limited partnership formed to own, operate and develop a growing portfolio of natural gas pipelines, storage and related midstream assets.
Columbia Pipeline Partners' business and operations are conducted through CPG OpCo LP and its subsidiaries, which own and operate substantially all of the natural gas transmission, storage and midstream assets of Columbia Pipeline Group, Inc. Columbia Pipeline Group operates approximately 15,000 miles of strategically located interstate pipelines extending from New York to the Gulf of Mexico, one of the nation's largest underground natural gas storage systems, and a growing portfolio of related gathering and processing assets. The majority of its assets overlay the Marcellus and Utica Shale production areas. Additional information can be found at www.columbiapipelinepartners.com or www.cpg.com.
Forward-Looking Statements
Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are statements other than historical facts and that frequently use words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "position," "should," "strategy," "target," "will" and similar words. All such forward-looking statements speak only as of the date of this release. Although CPPL believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved and such statements are subject to various risks and uncertainties. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecasted in such statements and readers are cautioned not to place undue reliance on such statements. CPPL's business may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond CPPL's control. These factors include, but are not limited to, the occurrence of any event, change or other circumstance that could give rise to termination of the merger agreement among CPG and TransCanada; the inability of CPG to complete the proposed merger due to the failure to obtain CPG stockholder approval for the proposed merger or the failure to satisfy other conditions to completion of the proposed merger, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the merger; risks related to disruption of management's attention from CPPL's ongoing business operations due to the pending merger; the impact of the announcement of the proposed merger on relationships with third parties, including commercial counterparties, employees and competitors, and risks associated with the loss and ongoing replacement of key personnel; risks relating to unanticipated costs of integration in connection with the proposed merger, including operating costs, customer loss or business disruption being greater than expected; changes in general economic conditions; competitive conditions in our industry; actions taken by third-party operators, processors and transporters; the demand for natural gas storage and transportation services; our ability to successfully implement our business plan; our ability to complete internal growth projects on time and on budget; the price and availability of debt and equity financing; the availability and price of natural gas to the consumer compared with the price of alternative and competing fuels; competition from the same and alternative energy sources; energy efficiency and technology trends; operating hazards and other risks incidental to transporting, storing and gathering natural gas; natural disasters, weather-related delays, casualty losses, acts of war and terrorism and other matters beyond our control; interest rates; labor relations; large customer defaults; changes in the availability and cost of capital; changes in tax status; the effects of existing and future laws and governmental regulations; and the effects of future litigation, including litigation relating to CPG's proposed merger with TransCanada. We caution that the foregoing list of factors is not exhaustive. Additional information about these and other factors can be found in CPPL's Annual Report on Form 10-K filed with the SEC for the fiscal year ended December 31, 2015, as amended, and CPPL's other filings with the SEC, which are available at http://www.sec.gov. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. CPPL expressly disclaims any obligation to update, amend or clarify any forward-looking statement to reflect events, new information or circumstances occurring after the date of this release except as required by applicable law.
Additional Information and Where to Find It
This release may be deemed to be solicitation material in respect of the proposed acquisition of CPG by TransCanada. In connection with the proposed merger transaction, CPG filed a preliminary proxy statement with the SEC on April 8, 2016, and intends to file other relevant documents with the SEC, including a proxy statement in definitive form (which CPG expects to commence disseminating to stockholders on or about May 18, 2016). BEFORE MAKING ANY VOTING DECISION, CPG'S STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER.
Investors and security holders will be able to obtain, free of charge, a copy of the definitive proxy statement (when available) and other relevant documents filed with the SEC from the SEC's website at http://www.sec.gov. In addition, the proxy statement and CPG's annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to section 13(a) or 15(d) of the Exchange Act will be available free of charge through CPG's website at https://www.cpg.com/ as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC.
Participants in Solicitation
CPPL and its general partner's directors and executive officers may be deemed to be participants in the solicitation of proxies from the holders of CPG common stock in respect of the proposed merger. Information about the directors and executive officers of CPPL's general partner can be found in CPPL's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on February 18, 2016, as amended by Amendment No. 1 thereto on Form 10-K/A, filed with the SEC on April 7, 2016. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests in the merger, which may be different than those of CPG's stockholders generally, will be contained in the proxy statement and other relevant materials that will be filed with the SEC in connection with the proposed merger when they become available.
Columbia Pipeline Partners LP | ||||||
Statements of Consolidated and Combined Operations (GAAP) | ||||||
(unaudited) | ||||||
Three Months Ended | ||||||
March 31, | ||||||
(in millions, except per unit amounts) |
2016 |
2015 | ||||
Operating Revenues |
||||||
Transportation revenues |
$ 307.8 |
$ 247.9 | ||||
Transportation revenues-affiliated |
- |
28.7 | ||||
Storage revenues |
49.9 |
36.6 | ||||
Storage revenues-affiliated |
- |
13.3 | ||||
Other revenues |
5.8 |
12.7 | ||||
Total Operating Revenues |
363.5 |
339.2 | ||||
Operating Expenses |
||||||
Operation and maintenance |
99.2 |
110.0 | ||||
Operation and maintenance-affiliated |
42.4 |
36.1 | ||||
Depreciation and amortization |
37.6 |
32.3 | ||||
Gain on sale of assets |
(2.6) |
(5.3) | ||||
Property and other taxes |
20.8 |
19.0 | ||||
Total Operating Expenses |
197.4 |
192.1 | ||||
Equity Earnings in Unconsolidated Affiliates |
15.8 |
14.9 | ||||
Operating Income |
181.9 |
162.0 | ||||
Other Income (Deductions) |
||||||
Interest expense |
(0.6) |
- | ||||
Interest expense-affiliated |
(7.2) |
(11.4) | ||||
Other, net |
6.1 |
4.3 | ||||
Total Other Deductions, net |
(1.7) |
(7.1) | ||||
Income before Income Taxes |
180.2 |
154.9 | ||||
Income Taxes |
- |
23.7 | ||||
Net Income |
180.2 |
131.2 | ||||
Less: Predecessor net income prior to IPO on February 11, 2015 |
- |
42.7 | ||||
Net income subsequent to IPO |
180.2 |
88.5 | ||||
Less: Net income attributable to noncontrolling interest in Columbia OpCo subsequent to IPO |
152.9 |
75.2 | ||||
Net income attributable to limited partners subsequent to IPO |
$ 27.3 |
$ 13.3 | ||||
Net income attributable to partners' ownership interest subsequent to IPO per limited partner unit (basic and diluted) |
||||||
Common units |
$ 0.25 |
$ 0.13 | ||||
Subordinated units |
0.25 |
0.13 | ||||
Weighted average limited partner units outstanding (basic and diluted) |
||||||
Common units |
53.8 |
53.8 | ||||
Subordinated units |
46.8 |
46.8 | ||||
Throughput (MMDth) |
||||||
Columbia Gas Transmission |
544.4 |
497.3 | ||||
Columbia Gulf |
153.0 |
145.7 | ||||
Total |
697.4 |
643.0 | ||||
Columbia Pipeline Partners LP | |||||||
Schedule 1 - Non-GAAP Reconciliation of Adjusted EBITDA and Distributable Cash Flow | |||||||
(unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
(in millions) |
2016 |
2015 | |||||
Net Income |
$ 180.2 |
$ 131.2 | |||||
Add: |
|||||||
Interest expense |
0.6 |
- | |||||
Interest expense-affiliated |
7.2 |
11.4 | |||||
Income taxes |
- |
23.7 | |||||
Depreciation and amortization |
37.6 |
32.3 | |||||
Distributions of earnings received from equity investees |
18.9 |
18.3 | |||||
Less: |
|||||||
Equity earnings in unconsolidated affiliates |
15.8 |
14.9 | |||||
Other, net |
6.1 |
4.3 | |||||
Adjusted EBITDA |
$ 222.6 |
$ 197.7 | |||||
Less: |
|||||||
Adjusted EBITDA attributable to Predecessor prior to IPO |
- |
79.4 | |||||
Adjusted EBITDA attributable to noncontrolling interest in OpCo subsequent to IPO |
188.3 |
100.1 | |||||
Adjusted EBITDA attributable to Partnership subsequent to IPO |
$ 34.3 |
$ 18.2 | |||||
Net Cash Flows from Operating Activities |
$ 131.9 |
$ 173.7 | |||||
Interest expense |
0.6 |
- | |||||
Interest expense-affiliated |
7.2 |
11.4 | |||||
Current taxes |
- |
13.2 | |||||
Gain on sale of assets |
2.6 |
5.3 | |||||
Other adjustments to operating cash flows |
1.2 |
(8.2) | |||||
Changes in assets and liabilities |
79.1 |
2.3 | |||||
Adjusted EBITDA |
$ 222.6 |
$ 197.7 | |||||
Less: |
|||||||
Adjusted EBITDA attributable to Predecessor prior to IPO |
- |
79.4 | |||||
Adjusted EBITDA attributable to noncontrolling interest in OpCo subsequent to IPO |
188.3 |
100.1 | |||||
Adjusted EBITDA attributable to Partnership subsequent to IPO |
$ 34.3 |
$ 18.2 | |||||
Adjusted EBITDA |
$ 222.6 |
$ 197.7 | |||||
Less: |
|||||||
Interest expense |
7.8 |
11.4 | |||||
Maintenance capital expenditures |
14.9 |
18.5 | |||||
Separation maintenance capital expenditures |
- |
2.1 | |||||
Gain on sale of assets |
2.6 |
5.3 | |||||
Distributable cash flow attributable to Predecessor prior to IPO |
- |
67.8 | |||||
Distributable cash flow attributable to noncontrolling interest subsequent to IPO |
167.5 |
89.0 | |||||
Add: |
|||||||
Proceeds from sales of assets |
- |
10.2 | |||||
Interest income |
0.2 |
- | |||||
Capital costs related to Separation |
- |
2.1 | |||||
Distributable Cash Flow |
$ 30.0 |
$ 15.9 | |||||
Columbia Pipeline Partners LP | |||||||
Consolidated Balance Sheets (GAAP) | |||||||
(unaudited) | |||||||
March 31, |
December 31, | ||||||
(in millions) |
2016 |
2015 | |||||
ASSETS |
|||||||
Current Assets |
|||||||
Cash and cash equivalents |
$ 34.2 |
$ 78.9 | |||||
Accounts receivable (less reserve of $0.3 and $0.3, respectively) |
154.1 |
145.9 | |||||
Accounts receivable-affiliated |
122.6 |
149.4 | |||||
Materials and supplies, at average cost |
33.2 |
32.8 | |||||
Exchange gas receivable |
11.8 |
18.8 | |||||
Deferred property taxes |
54.2 |
52.0 | |||||
Prepayments and other |
31.0 |
33.8 | |||||
Total Current Assets |
441.1 |
511.6 | |||||
Investments |
|||||||
Unconsolidated affiliates |
436.2 |
437.1 | |||||
Other investments |
1.8 |
1.8 | |||||
Total Investments |
438.0 |
438.9 | |||||
Property, Plant and Equipment |
|||||||
Property, plant and equipment |
9,297.6 |
8,930.9 | |||||
Accumulated depreciation and amortization |
(2,994.0) |
(2,960.1) | |||||
Net Property, Plant and Equipment |
6,303.6 |
5,970.8 | |||||
Other Noncurrent Assets |
|||||||
Regulatory assets |
132.6 |
134.1 | |||||
Goodwill |
1,975.5 |
1,975.5 | |||||
Postretirement and postemployment benefits assets |
122.3 |
120.5 | |||||
Deferred charges and other |
10.9 |
10.6 | |||||
Total Other Noncurrent Assets |
2,241.3 |
2,240.7 | |||||
Total Assets |
$ 9,424.0 |
$ 9,162.0 | |||||
Columbia Pipeline Partners LP | |||||||
Consolidated Balance Sheets (GAAP) (continued) | |||||||
(unaudited) | |||||||
March 31, |
December 31, | ||||||
(in millions, except unit amounts) |
2016 |
2015 | |||||
LIABILITIES AND EQUITY |
|||||||
Current Liabilities |
|||||||
Short-term borrowings |
$ 15.0 |
$ 15.0 | |||||
Short-term borrowings-affiliated |
348.8 |
42.1 | |||||
Accounts payable |
46.2 |
49.9 | |||||
Accounts payable-affiliated |
22.6 |
86.3 | |||||
Customer deposits |
18.7 |
17.8 | |||||
Taxes accrued |
103.6 |
108.2 | |||||
Exchange gas payable |
11.7 |
18.2 | |||||
Deferred revenue |
10.5 |
15.0 | |||||
Accrued capital expenditures |
88.0 |
95.9 | |||||
Accrued compensation and related costs |
21.5 |
26.6 | |||||
Other accruals |
56.9 |
43.8 | |||||
Total Current Liabilities |
743.5 |
518.8 | |||||
Noncurrent Liabilities |
|||||||
Long-term debt-affiliated |
630.9 |
630.9 | |||||
Deferred income taxes |
1.0 |
1.0 | |||||
Accrued liability for postretirement and postemployment benefits |
35.8 |
36.1 | |||||
Regulatory liabilities |
291.9 |
309.7 | |||||
Asset retirement obligations |
24.7 |
25.3 | |||||
Other noncurrent liabilities |
65.8 |
63.5 | |||||
Total Noncurrent Liabilities |
1,050.1 |
1,066.5 | |||||
Total Liabilities |
1,793.6 |
1,585.3 | |||||
Commitments and Contingencies |
|||||||
Equity and Partners' Capital |
|||||||
Common unitholders-public (53,834,784 units issued and outstanding) |
963.4 |
958.5 | |||||
Subordinated unitholders-CEG (46,811,398 units issued and outstanding) |
308.3 |
304.0 | |||||
Accumulated other comprehensive loss |
(3.9) |
(4.0) | |||||
Total Columbia Pipeline Partners LP partners' equity and capital |
1,267.8 |
1,258.5 | |||||
Noncontrolling Interest in Columbia OpCo |
6,362.6 |
6,318.2 | |||||
Total Equity and Partners' Capital |
7,630.4 |
7,576.7 | |||||
Total Liabilities and Equity and Partners' Capital |
$ 9,424.0 |
$ 9,162.0 | |||||
Columbia Pipeline Partners LP | |||||||
Statements of Consolidated and Combined Cash Flows (GAAP) | |||||||
(unaudited) | |||||||
Three Months Ended March 31, (in millions) |
2016 |
2015 | |||||
Operating Activities |
|||||||
Net Income |
$ 180.2 |
$ 131.2 | |||||
Adjustments to Reconcile Net Income to Net Cash from Operating Activities: |
|||||||
Depreciation and amortization |
37.6 |
32.3 | |||||
Deferred income taxes and investment tax credits |
- |
10.5 | |||||
Deferred revenue |
(2.0) |
5.3 | |||||
Equity-based compensation expense and profit sharing contribution |
0.7 |
2.0 | |||||
Gain on sale of assets |
(2.6) |
(5.3) | |||||
Equity earnings in unconsolidated affiliates |
(15.8) |
(14.9) | |||||
Amortization of debt related costs |
0.1 |
0.1 | |||||
AFUDC equity |
(6.1) |
(3.5) | |||||
Distributions of earnings received from equity investees |
18.9 |
18.3 | |||||
Changes in Assets and Liabilities: |
|||||||
Accounts receivable |
(5.7) |
12.2 | |||||
Accounts receivable-affiliated |
1.8 |
15.1 | |||||
Accounts payable |
(11.3) |
(15.6) | |||||
Accounts payable-affiliated |
(65.7) |
(15.1) | |||||
Customer deposits |
0.9 |
0.6 | |||||
Taxes accrued |
(4.7) |
2.4 | |||||
Exchange gas receivable/payable |
0.6 |
- | |||||
Other accruals |
(5.3) |
(7.8) | |||||
Prepayments and other current assets |
8.1 |
2.9 | |||||
Regulatory assets/liabilities |
1.4 |
11.8 | |||||
Postretirement and postemployment benefits |
(0.1) |
(7.7) | |||||
Deferred charges and other noncurrent assets |
(2.1) |
(1.9) | |||||
Other noncurrent liabilities |
3.0 |
0.8 | |||||
Net Cash Flows from Operating Activities |
131.9 |
173.7 | |||||
Investing Activities |
|||||||
Capital expenditures |
(377.4) |
(163.9) | |||||
Change in short-term lendings-affiliated |
24.9 |
(699.6) | |||||
Proceeds from disposition of assets |
- |
10.2 | |||||
Contributions to equity investees |
(1.9) |
- | |||||
Distributions from equity investees |
0.2 |
1.3 | |||||
Other investing activities |
(2.0) |
(2.5) | |||||
Net Cash Flows used for Investing Activities |
(356.2) |
(854.5) | |||||
Financing Activities |
|||||||
Change in short-term borrowings-affiliated |
306.6 |
(240.4) | |||||
Payments of long-term debt-affiliated, including current portion |
- |
(957.8) | |||||
Proceeds from the issuance of common units, net of offering costs |
- |
1,168.4 | |||||
Distribution of IPO proceeds to parent |
- |
(500.0) | |||||
Contribution of capital from parent |
- |
1,217.3 | |||||
Quarterly distributions to unitholders |
(18.1) |
- | |||||
Distribution to noncontrolling interest in Columbia OpCo |
(108.9) |
- | |||||
Net Cash Flows from Financing Activities |
179.6 |
687.5 | |||||
Change in cash and cash equivalents |
(44.7) |
6.7 | |||||
Cash and cash equivalents at beginning of period |
78.9 |
0.5 | |||||
Cash and Cash Equivalents at End of Period |
$ 34.2 |
$ 7.2 | |||||
SOURCE Columbia Pipeline Partners LP
HOUSTON, May 2, 2016 /PRNewswire/ -- The Board of Directors of CPP GP LLC, as general partner of Columbia Pipeline Partners LP (NYSE: CPPL) ("CPPL"), today approved a quarterly distribution payment of $0.1875 per unit for CPPL, payable on May 20, 2016, to both common and subordinated unit holders of record at the close of business on May 13, 2016. This distribution represents an approximately 4.2 percent increase over the prior quarter's distribution of $0.18 per unit.
1446 Qualified Notice
This notice is intended to serve as qualified notice to nominees pursuant to Treasury Regulation 1.1446-4(b). All of the partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the partnership's distributions to foreign investors are subject to U.S. federal income tax withholding at the highest applicable effective tax rate.
About Columbia Pipeline Partners LP
Columbia Pipeline Partners LP, based in Houston, Texas, is a fee-based, growth-oriented master limited partnership formed to own, operate and develop a growing portfolio of natural gas pipelines, storage and related midstream assets.
Columbia Pipeline Partners' business and operations are conducted through CPG OpCo LP and its subsidiaries, which own and operate substantially all of the natural gas transmission, storage and midstream assets of Columbia Pipeline Group, Inc. Columbia Pipeline Group operates approximately 15,000 miles of strategically located interstate pipelines extending from New York to the Gulf of Mexico, one of the nation's largest underground natural gas storage systems, and a growing portfolio of related gathering and processing assets. The majority of its assets overlay the Marcellus and Utica Shale production areas. Additional information can be found at www.columbiapipelinepartners.com and www.cpg.com.
Forward Looking Statements
This release may include "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Partnership's control. All statements, other than historical facts included in this release, are forward-looking statements. All forward-looking statements speak only as of the date of this release. Although the Partnership believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.
The Partnership's business may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond the Partnership's control. These factors include, but are not limited to, changes to business plans as circumstances warrant. For a full discussion of these risks and uncertainties, please refer to the "Risk Factors" section of the Partnership's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and the information included in subsequent filings it makes with the SEC.
SOURCE Columbia Pipeline Partners LP
HOUSTON, April 28, 2016 /PRNewswire/ -- Columbia Pipeline Group, Inc. (NYSE: CPGX) ("CPG") and Columbia Pipeline Partners LP (NYSE: CPPL) ("CPPL") will each release first quarter 2016 earnings before U.S. financial markets open on May 3, 2016.
Neither CPG nor CPPL will be hosting an investor conference call to review first quarter financial results.
About Columbia Pipeline Group, Inc.
Columbia Pipeline Group, Inc. operates approximately 15,000 miles of strategically located interstate pipeline, gathering and processing assets extending from New York to the Gulf of Mexico, including an extensive footprint in the Marcellus and Utica Shale production areas. Columbia Pipeline Group also operates one of the nation's largest underground natural gas storage systems. Columbia Pipeline Group is listed on the NYSE under the ticker symbol CPGX. Additional information can be found at www.cpg.com.
About Columbia Pipeline Partners LP
Columbia Pipeline Partners LP, based in Houston, Texas, is a fee-based, growth-oriented master limited partnership formed to own, operate and develop a growing portfolio of natural gas pipelines, storage and related midstream assets.
Columbia Pipeline Partners' business and operations are conducted through CPG OpCo LP and its subsidiaries, which own and operate substantially all of the natural gas transmission, storage and midstream assets of Columbia Pipeline Group, Inc. Columbia Pipeline Group operates approximately 15,000 miles of strategically located interstate pipelines extending from New York to the Gulf of Mexico, one of the nation's largest underground natural gas storage systems, and a growing portfolio of related gathering and processing assets. The majority of its assets overlay the Marcellus and Utica Shale production areas. Additional information can be found at www.columbiapipelinepartners.com and www.cpg.com.
SOURCE Columbia Pipeline Group, Inc.
HOUSTON, March 17, 2016 /PRNewswire/ -- Columbia Pipeline Group, Inc. ("CPG") (NYSE: CPGX) today announced that it has entered into a definitive agreement to be acquired by TransCanada Corporation ("TransCanada") (TSX, NYSE: TRP) for $25.50 per share in cash. Including the assumption of CPG debt, the total enterprise value of the transaction is approximately $13 billion. The agreement, which has been unanimously approved by CPG's Board of Directors, represents a premium of approximately 32% to the volume weighted average price over the last 30 days.
"This transaction delivers tremendous value to our shareholders and places CPG within a leading energy platform that can maximize the value of our strategic positioning and deep inventory of transformational growth projects," said CPG Chairman and Chief Executive Officer Robert C. Skaggs, Jr. "The value presented here is a strong endorsement of our team's outstanding work. I am confident that this newly enhanced business will continue to deliver on our core commitments to customers, employees, stakeholders and stockholders."
"This transaction is truly transformational for TransCanada," said Russ Girling, President and CEO of TransCanada. "CPG's interstate pipeline and midstream assets sit directly on top of the fastest growing areas of the Marcellus and Utica Shale regions. This provides us with a complementary asset base, a substantial growth pipeline network and a broad team that has a solid track record of executing on projects and delivering results."
Transaction Details
The transaction is expected to close in the second half of 2016, subject to customary closing conditions, including receipt of regulatory approvals. The transaction requires the affirmative vote of holders of a majority of CPG's outstanding shares.
TransCanada has senior unsecured bridge credit facilities in place for up to US $10.3 billion with a syndicate of lenders.
Following completion of the transaction, TransCanada will own the general partner of Columbia Pipeline Partners LP (NYSE: CPPL) ("CPPL"), all of CPPL's incentive distribution rights and all of CPPL's subordinated units, which represent a 46.5% limited partnership interest in CPPL. Upon closing of the transaction, CPPL will remain a publicly traded partnership. Additional detail on the transaction can be found on the TransCanada website at www.transcanada.com.
Goldman, Sachs & Co. and Lazard acted as financial advisors to CPG. Sullivan & Cromwell LLP and Bennett Jones LLP acted as legal counsel to CPG.
Investor Conference Call to be Held Today
TransCanada will hold a brief teleconference and webcast today - Thursday, March 17, 2016 - to discuss this transaction. Russ Girling, TransCanada's President and Chief Executive Officer, and Don Marchand, Executive Vice-President, Corporate Development and Chief Financial Officer will take part in the call at 2:45 p.m. (MST) / 4:45 p.m. (EST).
Analysts, members of the media and other interested parties are invited to listen in by calling (866) 696-5910 or (416) 695-7806 (Toronto area). Please dial in 10 minutes prior to the start of the call. The pass code is 7894855. Russ Girling and Don Marchand will deliver short remarks but there will not be a question and answer session.
A live webcast of the teleconference will be available at www.transcanada.com. A copy of the slides presented during the call will be posted to TransCanada's website.
A replay of the teleconference will be available two hours after the conclusion of the call until midnight (EST) on March 24, 2016. Please call (800) 408-3053 or (905) 694-9451 (Toronto area) and enter pass code 5742144.
About Columbia Pipeline Group, Inc.
Columbia Pipeline Group, Inc. operates approximately 15,000 miles of strategically located interstate pipeline, gathering and processing assets extending from New York to the Gulf of Mexico, including an extensive footprint in the Marcellus and Utica shale production areas. Columbia Pipeline Group, Inc. also operates one of the nation's largest underground natural gas storage systems. Columbia Pipeline Group, Inc. is listed on the NYSE under the ticker symbol CPGX. Additional information can be found at www.cpg.com.
About TransCanada
With more than 65 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 67,000 kilometers (42,000 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with 368 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns or has interests in over 13,100 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest liquids delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. Visit TransCanada.com and our blog to learn more, or connect with us on social media and 3BL Media.
Forward-Looking Statements
Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and the Private Securities Litigation Reform Act of 1995 concerning CPG and the proposed merger with TransCanada. Forward-looking statements are statements other than historical facts and that frequently use words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "position," "should," "strategy," "target," "will" and similar words. All forward-looking statements speak only as of the date of this release. Although CPG believes that the plans, intentions and expectations reflected in or suggested by the forward looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved and such statements are subject to various risks and uncertainties. Therefore, actual outcomes and results could materially differ from what is express, implied or forecasted in such statements and readers are cautioned not to place undue reliance on such statements. CPG's business may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond CPG's control. These factors include, but are not limited to, the occurrence of any event, change or other circumstance that could give rise to termination of the merger agreement with TransCanada; the inability to complete the proposed merger due to the failure to obtain stockholder approval for the proposed merger or the failure to satisfy other conditions to completion of the proposed merger, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; risks related to disruption of management's attention from CPG's ongoing business operations due to the transaction; the impact of the announcement of the proposed merger on relationships with third parties, including commercial counterparties, employees and competitors, and risks associated with the loss and ongoing replacement of key personnel; risks relating to unanticipated costs of integration in connection with the proposed merger, including operating costs, customer loss or business disruption being greater than expected; changes in general economic conditions; competitive conditions in our industry; actions taken by third-party operators, processors and transporters; the demand for natural gas storage and transportation services; our ability to successfully implement our business plan; our ability to complete internal growth projects on time and on budget; the price and availability of debt and equity financing; the availability and price of natural gas to the consumer compared with the price of alternative and competing fuels; competition from the same and alternative energy sources; energy efficiency and technology trends; operating hazards and other risks incidental to transporting, storing and gathering natural gas; natural disasters, weather-related delays, casualty losses, acts of war and terrorism and other matters beyond our control; interest rates; labor relations; large customer defaults; changes in the availability and cost of capital; changes in tax status; the effects of existing and future laws and governmental regulations; and the effects of future litigation, including litigation relating to the proposed merger with TransCanada. We caution that the foregoing list of factors is not exhaustive. Additional information about these and other factors can be found in CPG's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") for the fiscal year ended December 31, 2015 and CPG's other filings with the SEC, which are available at http://www.sec.gov. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. CPG expressly disclaims any obligation to update, amend or clarify any forward-looking statement to reflect events, new information or circumstances occurring after the date of this release except as required by applicable law.
ADDITIONAL INFORMATION AND WHERE TO FIND IT:
This communication may be deemed to be solicitation material in respect of the proposed acquisition of CPG by TransCanada. In connection with the proposed merger transaction, CPG will file with the SEC and furnish to CPG's stockholders a proxy statement and other relevant documents. Before making any voting decision, CPG's stockholders are urged to read the proxy statement when it becomes available and any other documents to be filed with the SEC in connection with the proposed merger or incorporated by reference in the proxy statement because they will contain important information about the proposed merger.
Investors and security holders will be able to obtain, free of charge, a copy of the proxy statement (when available) and other relevant documents filed with the SEC from the SEC's website at http://www.sec.gov. In addition, the proxy statement and our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to section 13(a) or 14(d) of the Exchange Act are available free of charge through our website at https://www.cpg.com/ as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC.
PARTICIPANTS IN SOLICITATION:
CPG and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the holders of CPG common stock in respect of the proposed transaction. Information about the directors and executive officers of CPG can be found in the Information Statement included as an exhibit to CPG's amended Registration Statement on Form 10, which was filed with the SEC on June 2, 2015. Investors may obtain additional information regarding the interests of such participants in the merger, which may be different than those of CPG's stockholders generally, by reading the proxy statement and other relevant documents regarding the merger when such documents are filed with the SEC.
SOURCE Columbia Pipeline Group, Inc.
HOUSTON, Feb. 18, 2016 /PRNewswire/ -- Columbia Pipeline Partners LP (NYSE: CPPL) ("CPPL"), a Columbia Pipeline Group, Inc. (NYSE: CPGX) ("CPG") company, today reported financial and operating results for the fourth quarter as well as year-end 2015.
"Columbia Pipeline Partners' IPO in February 2015 was an integral part of a landmark year at CPG. The partnership delivered solid results, squarely in line with our expectations," said Robert C. Skaggs Jr., chairman and chief executive officer of CPP GP LLC, the general partner of CPPL. "Despite the dislocation of the financial markets, our outlook remains unchanged -- specifically, delivering 20 percent annual distribution growth through 2020."
CPPL reported Adjusted EBITDA attributable to the Partnership (a non-GAAP measure) of $93.3 million for the 12 months ended December 31, 2015 and generated Distributable Cash Flow (a non-GAAP measure) of $68.7 million. The distribution coverage ratio (a non-GAAP measure) for the year-to-date period is 1.12x. CPPL also reported net income attributable to limited partners of $74.0 million, or $0.74 per common unit, for the year.
CPPL reported Adjusted EBITDA attributable to the Partnership (a non-GAAP measure) of $26.3 million for the three months ended December 31, 2015 and generated Distributable Cash Flow (a non-GAAP measure) of $19.5 million. CPPL also reported net income attributable to limited partners of $22.4 million, or $0.22 per common unit, for the quarter.
Please see the definitions of such non-GAAP measures in the "Non-GAAP Financial Measures" section of this press release and a reconciliation to their most comparable measure calculated in accordance with GAAP on Schedule 1 of the financial tables below.
2016 Financial Guidance
For 2016, CPPL expects to generate between $700 million and $710 million of Adjusted EBITDA and continues to expect to deliver 20 percent annual distribution growth through 2020.
Presentation of Financial Statements
CPPL's consolidated financial statements include the accounts of CPPL and its consolidated subsidiary, CPG OpCo LP ("Columbia OpCo"). CPPL holds a 15.7% limited partner interest and a non-economic general partner interest in Columbia OpCo. CPPL controls Columbia OpCo through the ownership of its general partner and, accordingly, CPPL consolidates Columbia OpCo in its consolidated financial statements. Columbia Energy Group (a wholly owned subsidiary of CPG), CPPL's sponsor, owns the remaining 84.3% limited partner interest in Columbia OpCo, which is reflected as a non-controlling interest in CPPL's financial statements.
Balance Sheet
CPPL has a $500 million revolving credit facility, under which $15 million was drawn as of December 31, 2015 and maintains total liquidity of $485.7 million.
Growth and Modernization Capital Expenditures
Growth and Modernization capital expenditures totaled $225.9 million for the fourth quarter and $1.1 billion for the year. These expenditures were mostly attributable to the Leach XPress and Rayne XPress projects, the East Side Expansion project and the Columbia Gas Transmission modernization program. Additional details about CPPL's growth projects can be found in CPG's fourth quarter 2015 earnings release, which has also been issued on February 18, 2016.
Distributable Cash Flow
CPPL's Distributable Cash Flow (a non-GAAP measure) totaled $19.5 million for the fourth quarter and $68.7 million for the year. Please see a reconciliation to the most comparable measure calculated in accordance with GAAP on Schedule 1 of the financial tables below.
Year Ended December 31, 2015 Operating Results
A comparison of operating results for the year ended December 31, 2015 to the year ended December 31, 2014 is summarized below. Earnings for the periods prior to the date of CPPL's initial public offering are derived from the financial statements and accounting records of CPPL's predecessor.
Operating revenues, excluding the impact of a $112.4 million decrease in trackers, which is offset in expense, increased by $97.3 million. That increase was primarily due to higher demand margin revenue from growth projects placed into service and new firm contracts and increased shorter term transportation services, partially offset by a decrease in mineral rights royalty revenue, lower condensate revenues, decreased revenue from the settlement of gas imbalances and lower commodity revenue.
Operating expenses, excluding the impact of a $112.4 million decrease in trackers, which is offset in revenues, increased by $49.3 million. That increase was primarily due to higher employee and administrative costs, increased depreciation, higher outside service costs and increased property and other taxes. These increases were partially offset by increased gains on the conveyances of mineral interests.
Equity earnings increased by $13.6 million, primarily due to earnings generated by new Pennant facilities being fully placed in service and increased revenues from growth projects placed in service at Millennium Pipeline.
Other income (deductions) for the year ended December 31, 2015 increased income by $57.0 million compared to the prior period. The variance was primarily due to a decrease in interest expense resulting from the repayment of long-term debt, an increase in Allowance for Funds Used During Construction ("AFUDC") and higher interest income.
Three Months Ended December 31, 2015 Operating Results
A comparison of operating results for the three months ended December 31, 2015 to the three months ended December 31, 2014 is summarized below. Earnings for the periods prior to the date of CPPL's initial public offering are derived from the financial statements and accounting records of CPPL's predecessor.
Operating revenues, excluding the impact of a $22.1 million decrease in trackers, which is offset in expense, increased by $38.7 million. That increase was primarily due to higher demand margin revenue from growth projects placed into service and new firm contracts and increased shorter term transportation services, partially offset by a decrease in mineral rights royalty revenue.
Operating expenses, excluding the impact of a $22.1 million decrease in trackers, which is offset in revenues, increased by $37.9 million. That increase was primarily due to higher employee and administrative costs, decreased gains on the conveyances of mineral interests and higher depreciation. These items were partially offset by decreased outside service costs.
Equity earnings increased by $2.3 million, primarily due to earnings generated by new Pennant facilities being fully placed in service.
Other income (deductions) for the fourth quarter of 2015 increased income by $32.6 million compared to the prior period. The variance was primarily due to a decrease in interest expense resulting from the repayment of long-term debt and an increase in AFUDC.
Conference Call
CPPL and CPG will host a joint investor conference call at 9:00 a.m. ET (8:00 a.m. CT) on Thursday, February 18, 2016, to review their fourth quarter and year-end 2015 financial results. All interested parties may listen to the conference call live by logging on to the Columbia Pipeline Partners or Columbia Pipeline Group investor websites at http://investors.columbiapipelinepartners.com or http://investors.cpg.com.
A replay of the call will be available beginning at 1:00 p.m. ET on February 18, 2016 through 11:59 p.m. ET on February 25, 2016. To access the recording, call (855) 859-2056 and enter conference ID 25506873. For international participants to hear the replay, please dial (404) 537-3406 and enter the same conference ID as above, 25506873. A recording of the call will also be archived on the Columbia Pipeline Partners and Columbia Pipeline Group websites.
Non-GAAP Financial Measures
Adjusted EBITDA , Distributable Cash Flow and Distribution Coverage Ratio
We define Adjusted EBITDA as net income before interest expense, income taxes, and depreciation and amortization, plus distributions of earnings received from equity investees and one-time transition costs, less equity earnings in unconsolidated affiliates and other, net. In addition, to the extent transactions occur that are considered unusual, infrequent or not representative of underlying trends, we will remove the effect of these items from Adjusted EBITDA. Examples of these transactions include impairments. We define Distributable Cash Flow as Adjusted EBITDA less interest expense, maintenance capital expenditures, gain on sale of assets and distributable cash flow attributable to noncontrolling interest, plus proceeds from sale of assets, interest income, capital (received) costs related to the separation and any other known differences between cash and income. We define Distribution Coverage Ratio as the ratio of distributable cash flow per outstanding unit (as of the end of the period) to cash distributions payable per outstanding unit with respect to such period.
Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are non-GAAP supplemental financial measures that management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
We believe that the presentations of Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio will provide useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA and Distributable Cash Flow are Net Income and Net Cash Flows from Operating Activities. Our non-GAAP financial measures of Adjusted EBITDA and Distributable Cash Flow should not be considered as an alternative to GAAP Net Income or Net Cash Flows from Operating Activities. Adjusted EBITDA and Distributable Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash flows from operating activities. You should not consider Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio may be defined differently by other companies in our industry, our definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
About Columbia Pipeline Partners LP
Columbia Pipeline Partners LP, based in Houston, Texas, is a fee-based, growth-oriented master limited partnership formed to own, operate and develop a growing portfolio of natural gas pipelines, storage and related midstream assets.
Columbia Pipeline Partners' business and operations are conducted through CPG OpCo LP and its subsidiaries, which own and operate substantially all of the natural gas transmission, storage and midstream assets of Columbia Pipeline Group, Inc. Columbia Pipeline Group operates approximately 15,000 miles of strategically located interstate pipelines extending from New York to the Gulf of Mexico, one of the nation's largest underground natural gas storage systems, and a growing portfolio of related gathering and processing assets. The majority of its assets overlay the Marcellus and Utica Shale production areas. Additional information can be found at www.columbiapipelinepartners.com or www.cpg.com.
Forward-Looking Statements
This release includes "forward-looking statements" within the meaning of federal securities laws, which are statements other than historical facts and that frequently use words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "position," "should," "strategy," "target," "will" and similar words. All forward-looking statements speak only as of the date of this release. Although CPPL believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecasted in such statements. This release contains certain forward-looking statements that are based on current plans and expectations and are subject to various risks and uncertainties. CPPL's business may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond CPPL's control. These factors include, but are not limited to, changes in general economic conditions; competitive conditions in our industry; actions taken by third-party operators, processors and transporters; the demand for natural gas storage and transportation services; our ability to successfully implement our business plan; our ability to complete internal growth projects on time and on budget; the price and availability of debt and equity financing; the availability and price of natural gas to the consumer compared with the price of alternative and competing fuels; competition from the same and alternative energy sources; energy efficiency and technology trends; operating hazards and other risks incidental to transporting, storing and gathering natural gas; natural disasters, weather-related delays, casualty losses and other matters beyond our control; interest rates; labor relations; large customer defaults; changes in the availability and cost of capital; changes in tax status; the effects of existing and future laws and governmental regulations; and the effects of future litigation. For a full discussion of these risks and uncertainties, please refer to the "Risk Factors" section of CPPL's Annual Report on Form 10-K for the year ended December 31, 2014 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, each filed with the Securities and Exchange Commission. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2015. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. CPPL expressly disclaims any obligation to update, amend or clarify any forward-looking statement to reflect events, new information or circumstances occurring after the date of this press release except as required by applicable law.
Columbia Pipeline Partners LP | |||||||||||
Statements of Consolidated and Combined Operations (GAAP) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended |
Year Ended |
||||||||||
December 31, |
December 31, |
||||||||||
(in millions, except per unit amounts) |
2015 |
2014 |
2015 |
2014 |
|||||||
Predecessor |
Predecessor |
||||||||||
Operating Revenues |
|||||||||||
Transportation revenues |
$ 301.2 |
$ 247.4 |
$ 1,052.2 |
$ 990.9 |
|||||||
Transportation revenues-affiliated |
- |
29.5 |
47.1 |
95.8 |
|||||||
Storage revenues |
49.1 |
35.8 |
171.4 |
144.0 |
|||||||
Storage revenues-affiliated |
- |
13.1 |
26.2 |
53.2 |
|||||||
Other revenues |
6.7 |
14.6 |
34.9 |
63.0 |
|||||||
Total Operating Revenues |
357.0 |
340.4 |
1,331.8 |
1,346.9 |
|||||||
Operating Expenses |
|||||||||||
Operation and maintenance |
133.2 |
153.6 |
526.1 |
630.7 |
|||||||
Operation and maintenance-affiliated |
52.0 |
33.3 |
164.1 |
122.9 |
|||||||
Depreciation and amortization |
36.3 |
30.9 |
135.0 |
118.6 |
|||||||
Gain on sale of assets and impairment, net |
(2.7) |
(13.7) |
(54.7) |
(34.5) |
|||||||
Property and other taxes |
17.9 |
16.8 |
71.2 |
67.1 |
|||||||
Total Operating Expenses |
236.7 |
220.9 |
841.7 |
904.8 |
|||||||
Equity Earnings in Unconsolidated Affiliates |
16.0 |
13.7 |
60.2 |
46.6 |
|||||||
Operating Income |
136.3 |
133.2 |
550.3 |
488.7 |
|||||||
Other Income (Deductions) |
|||||||||||
Interest expense |
(0.2) |
- |
(1.4) |
- |
|||||||
Interest expense-affiliated |
(2.7) |
(22.9) |
(26.8) |
(62.0) |
|||||||
Other, net |
13.4 |
0.8 |
32.0 |
8.8 |
|||||||
Total Other Income (Deductions), net |
10.5 |
(22.1) |
3.8 |
(53.2) |
|||||||
Income before Income Taxes |
146.8 |
111.1 |
554.1 |
435.5 |
|||||||
Income Taxes |
0.2 |
46.7 |
23.9 |
166.4 |
|||||||
Net Income |
$ 146.6 |
$ 64.4 |
$ 530.2 |
$ 269.1 |
|||||||
Less: Predecessor net income prior to IPO on February 11, 2015 |
- |
42.7 |
|||||||||
Net income subsequent to IPO |
146.6 |
487.5 |
|||||||||
Less: Net income attributable to noncontrolling interest in Columbia OpCo subsequent to IPO |
124.2 |
413.5 |
|||||||||
Net income attributable to limited partners subsequent to IPO |
$ 22.4 |
$ 74.0 |
|||||||||
Net income attributable to partners' ownership interest subsequent to IPO per limited partner |
|||||||||||
Common units |
$ 0.22 |
$ 0.74 |
|||||||||
Subordinated units |
0.22 |
0.72 |
|||||||||
Weighted average limited partner units outstanding (basic and diluted) |
|||||||||||
Common units |
53.8 |
53.8 |
|||||||||
Subordinated units |
46.8 |
46.8 |
|||||||||
Throughput (MMDth) |
|||||||||||
Columbia Gas Transmission |
363.4 |
355.5 |
1,460.1 |
1,379.4 |
|||||||
Columbia Gulf |
142.2 |
153.4 |
562.7 |
626.7 |
|||||||
Total |
505.6 |
508.9 |
2,022.8 |
2,006.1 |
|||||||
Columbia Pipeline Partners LP |
||||||||||||
Schedule 1 - Non-GAAP Reconciliation of Adjusted EBITDA and Distributable Cash Flow |
||||||||||||
(unaudited) |
||||||||||||
Three Months Ended |
Year Ended |
|||||||||||
December 31, |
December 31, |
|||||||||||
(in millions) |
2015 |
2014 |
2015 |
2014 |
||||||||
Predecessor |
Predecessor |
|||||||||||
Net Income |
$ 146.6 |
$ 64.4 |
$ 530.2 |
$ 269.1 |
||||||||
Add: |
||||||||||||
Interest expense |
0.2 |
- |
1.4 |
- |
||||||||
Interest expense-affiliated |
2.7 |
22.9 |
26.8 |
62.0 |
||||||||
Income taxes |
0.2 |
46.7 |
23.9 |
166.4 |
||||||||
Depreciation and amortization |
36.3 |
30.9 |
135.0 |
118.6 |
||||||||
Asset impairment |
- |
- |
0.6 |
- |
||||||||
Distributions of earnings received from equity investees |
13.1 |
10.2 |
57.2 |
37.8 |
||||||||
Less: |
||||||||||||
Equity earnings in unconsolidated affiliates |
16.0 |
13.7 |
60.2 |
46.6 |
||||||||
Other, net |
13.4 |
0.8 |
32.0 |
8.8 |
||||||||
Adjusted EBITDA |
$ 169.7 |
$ 160.6 |
$ 682.9 |
$ 598.5 |
||||||||
Less: |
||||||||||||
Adjusted EBITDA attributable to Predecessor prior to IPO |
- |
79.4 |
||||||||||
Adjusted EBITDA attributable to noncontrolling interest in OpCo subsequent to IPO |
143.4 |
510.2 |
||||||||||
Adjusted EBITDA attributable to Partnership subsequent to IPO |
$ 26.3 |
$ 93.3 |
||||||||||
Net Cash Flows from Operating Activities |
$ 188.8 |
$ 121.5 |
$ 627.7 |
$ 568.1 |
||||||||
Interest expense |
0.2 |
- |
1.4 |
- |
||||||||
Interest expense-affiliated |
2.7 |
22.9 |
26.8 |
62.0 |
||||||||
Current taxes |
0.2 |
(23.1) |
13.4 |
27.1 |
||||||||
Gain on sale of assets and impairment, net |
2.7 |
13.7 |
54.7 |
34.5 |
||||||||
Other adjustments to operating cash flows |
(5.1) |
0.8 |
(13.3) |
(5.7) |
||||||||
Changes in assets and liabilities |
(19.8) |
24.8 |
(27.8) |
(87.5) |
||||||||
Adjusted EBITDA |
$ 169.7 |
$ 160.6 |
$ 682.9 |
$ 598.5 |
||||||||
Less: |
||||||||||||
Adjusted EBITDA attributable to Predecessor prior to IPO |
- |
79.4 |
||||||||||
Adjusted EBITDA attributable to noncontrolling interest in OpCo subsequent to IPO |
143.4 |
510.2 |
||||||||||
Adjusted EBITDA attributable to Partnership subsequent to IPO |
$ 26.3 |
$ 93.3 |
||||||||||
Adjusted EBITDA |
$ 169.7 |
$ 682.9 |
||||||||||
Less: |
||||||||||||
Interest expense |
2.9 |
28.2 |
||||||||||
Maintenance capital expenditures |
36.3 |
133.8 |
||||||||||
Separation maintenance capital expenditures |
1.1 |
3.5 |
||||||||||
Gain on sale of assets |
2.7 |
55.3 |
||||||||||
Distributable cash flow attributable to Predecessor prior to IPO |
- |
67.8 |
||||||||||
Distributable cash flow attributable to noncontrolling interest subsequent to IPO |
109.2 |
385.4 |
||||||||||
Add: |
||||||||||||
Proceeds from sales of assets |
29.1 |
84.1 |
||||||||||
Interest income |
0.7 |
4.9 |
||||||||||
Capital (received) costs related to Separation |
(27.8) |
(29.2) |
||||||||||
Partnership Distributable Cash Flow |
$ 19.5 |
$ 68.7 |
||||||||||
Columbia Pipeline Partners LP | ||||||||
Schedule 2 - Non-GAAP Reconciliation of Forecasted Adjusted EBITDA | ||||||||
(unaudited) | ||||||||
Net income and net cash flows from operating activities are the most directly comparable GAAP measures to adjusted EBITDA. We reconcile adjusted EBITDA to net income for the 2016 guidance presented below. It is, however, impractical to reconcile adjusted EBITDA to net cash flows from operating activities for the forecasted period. Schedule 1 of this earnings release presents a historical reconciliation of adjusted EBITDA to net income and net cash flows from operating activities. | ||||||||
Year Ended |
||||||||
December 31, 2016 |
||||||||
(in millions) |
Low |
High |
||||||
Net Income |
$ 543 |
$ 557 |
||||||
Add: |
||||||||
Interest expense |
35 |
27 |
||||||
Depreciation and amortization |
154 |
154 |
||||||
Distributions of earnings received from equity investees |
58 |
62 |
||||||
Less: |
||||||||
Equity earnings in unconsolidated affiliates |
58 |
62 |
||||||
Other, net |
32 |
28 |
||||||
Adjusted EBITDA |
$ 700 |
$ 710 |
||||||
Columbia Pipeline Partners LP | |||||||
Consolidated and Combined Balance Sheets (GAAP) | |||||||
(unaudited) | |||||||
December 31, |
December 31, | ||||||
(in millions) |
2015 |
2014 | |||||
Predecessor | |||||||
ASSETS |
|||||||
Current Assets |
|||||||
Cash and cash equivalents |
$ 78.9 |
$ 0.5 | |||||
Accounts receivable (less reserve of $0.3 and $0.3, respectively) |
145.9 |
149.3 | |||||
Accounts receivable-affiliated |
149.4 |
153.8 | |||||
Materials and supplies, at average cost |
32.8 |
24.9 | |||||
Exchange gas receivable |
18.8 |
34.8 | |||||
Deferred property taxes |
52.0 |
48.9 | |||||
Deferred income taxes |
- |
24.6 | |||||
Prepayments and other |
33.8 |
20.9 | |||||
Total Current Assets |
511.6 |
457.7 | |||||
Investments |
|||||||
Unconsolidated affiliates |
437.1 |
444.3 | |||||
Other investments |
1.8 |
6.2 | |||||
Total Investments |
438.9 |
450.5 | |||||
Property, Plant and Equipment |
|||||||
Property, plant and equipment |
8,930.9 |
7,931.6 | |||||
Accumulated depreciation and amortization |
(2,960.1) |
(2,971.4) | |||||
Net Property, Plant and Equipment |
5,970.8 |
4,960.2 | |||||
Other Noncurrent Assets |
|||||||
Regulatory assets |
134.1 |
151.9 | |||||
Goodwill |
1,975.5 |
1,975.5 | |||||
Postretirement and postemployment benefits assets |
120.5 |
102.7 | |||||
Deferred charges and other |
10.6 |
9.0 | |||||
Total Other Noncurrent Assets |
2,240.7 |
2,239.1 | |||||
Total Assets |
$ 9,162.0 |
$ 8,107.5 | |||||
Columbia Pipeline Partners LP | |||||||
Consolidated and Combined Balance Sheets (GAAP) (continued) | |||||||
(unaudited) | |||||||
December 31, |
December 31, | ||||||
(in millions, except unit amounts) |
2015 |
2014 | |||||
Predecessor | |||||||
LIABILITIES AND EQUITY |
|||||||
Current Liabilities |
|||||||
Current portion of long-term debt-affiliated |
$ - |
$ 115.9 | |||||
Short-term borrowings |
15.0 |
- | |||||
Short-term borrowings-affiliated |
42.1 |
247.3 | |||||
Accounts payable |
49.9 |
56.1 | |||||
Accounts payable-affiliated |
86.3 |
49.9 | |||||
Customer deposits |
17.8 |
13.4 | |||||
Taxes accrued |
108.2 |
106.9 | |||||
Exchange gas payable |
18.2 |
34.7 | |||||
Deferred revenue |
15.0 |
22.2 | |||||
Accrued capital expenditures |
95.9 |
61.1 | |||||
Accrued compensation and related costs |
26.6 |
31.2 | |||||
Other accruals |
43.8 |
39.0 | |||||
Total Current Liabilities |
518.8 |
777.7 | |||||
Noncurrent Liabilities |
|||||||
Long-term debt-affiliated |
630.9 |
1,472.8 | |||||
Deferred income taxes |
1.0 |
1,239.0 | |||||
Accrued liability for postretirement and postemployment benefits |
36.1 |
44.7 | |||||
Regulatory liabilities |
309.7 |
294.3 | |||||
Asset retirement obligations |
25.3 |
23.2 | |||||
Other noncurrent liabilities |
63.5 |
84.5 | |||||
Total Noncurrent Liabilities |
1,066.5 |
3,158.5 | |||||
Total Liabilities |
1,585.3 |
3,936.2 | |||||
Commitments and Contingencies |
|||||||
Equity and Partners' Capital |
|||||||
Net parent investment |
- |
4,188.0 | |||||
Common unitholders-public (53,834,784 units issued and outstanding) |
958.5 |
- | |||||
Subordinated unitholders-CEG (46,811,398 units issued and outstanding) |
304.0 |
- | |||||
Accumulated other comprehensive loss |
(4.0) |
(16.7) | |||||
Total Columbia Pipeline Partners LP partners' equity and capital |
1,258.5 |
4,171.3 | |||||
Noncontrolling Interest in Columbia OpCo |
6,318.2 |
- | |||||
Total Equity and Partners' Capital |
7,576.7 |
4,171.3 | |||||
Total Liabilities and Equity and Partners' Capital |
$ 9,162.0 |
$ 8,107.5 | |||||
Columbia Pipeline Partners LP | |||||||
Statements of Consolidated and Combined Cash Flows (GAAP) | |||||||
Year Ended December 31, (in millions) |
2015 |
2014 | |||||
Predecessor | |||||||
Operating Activities |
|||||||
Net Income |
$ 530.2 |
$ 269.1 | |||||
Adjustments to Reconcile Net Income to Net Cash from Operating Activities: |
|||||||
Depreciation and amortization |
135.0 |
118.6 | |||||
Deferred income taxes and investment tax credits |
10.5 |
139.3 | |||||
Deferred revenue |
4.2 |
1.6 | |||||
Equity-based compensation expense and profit sharing contribution |
5.6 |
6.3 | |||||
Gain on sale of assets and impairment, net |
(54.7) |
(34.5) | |||||
Equity earnings in unconsolidated affiliates |
(60.2) |
(46.6) | |||||
Amortization of debt related costs |
0.4 |
- | |||||
AFUDC equity |
(28.3) |
(11.0) | |||||
Distributions of earnings received from equity investees |
57.2 |
37.8 | |||||
Changes in Assets and Liabilities: |
|||||||
Accounts receivable |
(11.0) |
(20.3) | |||||
Accounts receivable-affiliated |
21.6 |
2.2 | |||||
Accounts payable |
(10.0) |
2.8 | |||||
Accounts payable-affiliated |
30.1 |
8.6 | |||||
Customer deposits |
(22.9) |
77.5 | |||||
Taxes accrued |
19.5 |
11.8 | |||||
Exchange gas receivable/payable |
- |
1.1 | |||||
Other accruals |
10.5 |
0.6 | |||||
Prepayments and other current assets |
(13.5) |
(4.4) | |||||
Regulatory assets/liabilities |
27.6 |
9.0 | |||||
Postretirement and postemployment benefits |
(5.2) |
2.2 | |||||
Deferred charges and other noncurrent assets |
(13.8) |
(4.3) | |||||
Other noncurrent liabilities |
(5.1) |
0.7 | |||||
Net Cash Flows from Operating Activities |
627.7 |
568.1 | |||||
Investing Activities |
|||||||
Capital expenditures |
(1,106.6) |
(747.2) | |||||
Insurance recoveries |
2.1 |
11.3 | |||||
Change in short-term lendings-affiliated |
(24.3) |
(61.6) | |||||
Proceeds from disposition of assets |
84.1 |
9.3 | |||||
Contributions to equity investees |
(1.4) |
(69.2) | |||||
Distributions from equity investees |
16.0 |
- | |||||
Other investing activities |
(22.4) |
(7.1) | |||||
Net Cash Flows (used for) Investing Activities |
(1,052.5) |
(864.5) | |||||
Financing Activities |
|||||||
Change in short-term borrowings |
15.0 |
- | |||||
Change in short-term borrowings-affiliated |
(207.2) |
(472.3) | |||||
Issuance of long-term debt-affiliated |
- |
768.9 | |||||
Payments of long-term debt-affiliated, including current portion |
(959.6) |
- | |||||
Proceeds from the issuance of common units, net of offering costs |
1,168.4 |
- | |||||
Distribution of IPO proceeds to parent |
(500.0) |
- | |||||
Contribution of capital from parent |
1,217.3 |
- | |||||
Quarterly distributions to unitholders |
(43.4) |
- | |||||
Distribution to noncontrolling interest in Columbia OpCo |
(187.3) |
- | |||||
Net Cash Flows from Financing Activities |
503.2 |
296.6 | |||||
Change in cash and cash equivalents |
78.4 |
0.2 | |||||
Cash and cash equivalents at beginning of period |
0.5 |
0.3 | |||||
Cash and Cash Equivalents at End of Period |
$ 78.9 |
$ 0.5 | |||||
SOURCE Columbia Pipeline Partners LP
HOUSTON, Jan. 29, 2016 /PRNewswire/ -- Columbia Pipeline Partners LP ("CPPL") (NYSE: CPPL) announced that Peggy A. Heeg has joined its board of directors.
"Peggy brings 30 years of energy and management experience to our board. Peggy's strategic knowledge of the midstream business and master limited partnerships will strengthen our board," Board Chairman Robert C. Skaggs, Jr. noted. "We are pleased to welcome Peggy to our team."
Ms. Heeg is a corporate partner and has served on the Executive Committee of Norton Rose Fulbright US LLP, a leading global law firm. She previously served as Executive Vice President and General Counsel of the El Paso Corporation.
Ms. Heeg served as an independent director, chaired the Nomination and Governance Committee and served on the Audit and Conflicts Committees of Eagle Rock Energy Partners from July 2010 through the October 2015 sale of the partnership. She has volunteered for numerous charitable organizations in the Houston area and has served on the board of directors of the DePelchin Children's Center and the United Way of Greater Houston.
Other members of the CPPL board of directors include: G. Stephen Finley, Thomas W. Hofmann, Glen L. Kettering, Stephen P. Smith, Robert Smith, Stanley Chapman III and Mr. Skaggs.
For more information on CPPL and corporate governance, visit the investor relations section of our website at www.columbiapipelinepartners.com.
About Columbia Pipeline Partners LP
Columbia Pipeline Partners LP, based in Houston, Texas, is a fee-based, growth-oriented master limited partnership formed to own, operate and develop a growing portfolio of natural gas pipelines, storage and related midstream assets.
Columbia Pipeline Partners' business and operations are conducted through CPG OpCo LP and its subsidiaries, which own and operate substantially all of the natural gas transmission, storage and midstream assets of Columbia Pipeline Group, Inc. Columbia Pipeline Group operates approximately 15,000 miles of strategically located interstate pipelines extending from New York to the Gulf of Mexico, one of the nation's largest underground natural gas storage systems, and a growing portfolio of related gathering and processing assets. The majority of its assets overlay the Marcellus and Utica Shale production areas. Additional information can be found at www.columbiapipelinepartners.com and www.cpg.com.
About Columbia Pipeline Group, Inc.
Columbia Pipeline Group, Inc. operates approximately 15,000 miles of strategically located interstate pipeline, gathering and processing assets extending from New York to the Gulf of Mexico, including an extensive footprint in the Marcellus and Utica shale production areas. Columbia Pipeline Group, Inc. also operates one of the nation's largest underground natural gas storage systems. Columbia Pipeline Group, Inc. is listed on the NYSE under the ticker symbol CPGX. Additional information can be found at www.cpg.com.
Forward-Looking Statement
This release may include "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond CPPL's control. All statements, other than historical facts included in this release, are forward-looking statements. All forward-looking statements speak only as of the date of this release. Although CPG believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. For a full discussion of these risks and uncertainties, please refer to the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2014 and the information included in subsequent filings made with the SEC. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2015.
SOURCE Columbia Pipeline Partners LP
HOUSTON, Jan. 29, 2016 /PRNewswire/ -- The Board of Directors of CPP GP LLC, as general partner of Columbia Pipeline Partners LP (NYSE: CPPL) ("CPPL" or the "Partnership"), a Columbia Pipeline Group, Inc. (NYSE: CPGX) company, today approved a quarterly distribution payment of $0.18 per unit for CPPL, payable on February 19, 2016, to both common and subordinated unit holders of record at the close of business on February 11, 2016. This distribution represents an approximately 4.3 percent increase over the prior quarter's distribution of $0.1725 per unit.
"Despite the prolonged dislocation of the financial markets, the fundamentals for Columbia Pipeline Partners are as strong as ever," said Robert C. Skaggs Jr., chairman and chief executive officer of CPP GP LLC, the general partner of CPPL. "Our footprint, growth profile and robust liquidity levels continue to distinguish CPPL and are expected to drive 20 percent annual distribution growth through 2020, as measured by the distribution paid in the fourth quarter of each calendar year," said Skaggs.
1446 Qualified Notice
This notice is intended to serve as qualified notice to nominees pursuant to Treasury Regulation 1.1446-4(b). All of the partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the partnership's distributions to foreign investors are subject to U.S. federal income tax withholding at the highest applicable effective tax rate.
About Columbia Pipeline Partners LP
Columbia Pipeline Partners LP, based in Houston, Texas, is a fee-based, growth-oriented master limited partnership formed to own, operate and develop a growing portfolio of natural gas pipelines, storage and related midstream assets.
Columbia Pipeline Partners' business and operations are conducted through CPG OpCo LP and its subsidiaries, which own and operate substantially all of the natural gas transmission, storage and midstream assets of Columbia Pipeline Group, Inc. Columbia Pipeline Group operates approximately 15,000 miles of strategically located interstate pipelines extending from New York to the Gulf of Mexico, one of the nation's largest underground natural gas storage systems, and a growing portfolio of related gathering and processing assets. The majority of its assets overlay the Marcellus and Utica Shale production areas. Additional information can be found at www.columbiapipelinepartners.com and www.cpg.com.
Forward Looking Statements
This release may include "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Partnership's control. All statements, other than historical facts included in this release, are forward-looking statements. All forward-looking statements speak only as of the date of this release. Although the Partnership believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.
The Partnership's business may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond the Partnership's control. These factors include, but are not limited to, changes to business plans as circumstances warrant. For a full discussion of these risks and uncertainties, please refer to the "Risk Factors" section of the Partnership's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and the information included in subsequent filings it makes with the SEC. Additional information will also be set forth in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2015. The Partnership refers you to those discussions for further information.
SOURCE Columbia Pipeline Partners LP
HOUSTON, Jan. 28, 2016 /PRNewswire/ -- Columbia Pipeline Group, Inc. (NYSE: CPGX) and Columbia Pipeline Partners LP (NYSE: CPPL) will host a joint investor conference call at 9:00 a.m. ET (8:00 a.m. CT) on Thursday, February 18, 2016, to review their fourth quarter and year end 2015 financial results.
Columbia Pipeline Group and Columbia Pipeline Partners will each release its fourth quarter and year end 2015 earnings before U.S. financial markets open on February 18.
All interested parties may listen to the conference call live on February 18 by logging onto the Columbia Pipeline Group or Columbia Pipeline Partners investor relations website at http://investors.cpg.com or http://investors.columbiapipelinepartners.com, respectively.
A replay of the call will be available beginning at 1:00 pm ET on February 18, through 11:59 p.m. ET on February 25. To access the recording, call (855) 859-2056 and enter conference ID 25506873. For international participants to hear the replay, please dial (404) 537-3406 and enter the same pass code as above, 25506873. A recording of the call will also be archived on both the Columbia Pipeline Group and Columbia Pipeline Partners websites.
About Columbia Pipeline Group, Inc.
Columbia Pipeline Group, Inc. operates approximately 15,000 miles of strategically located interstate pipeline, gathering and processing assets extending from New York to the Gulf of Mexico, including an extensive footprint in the Marcellus and Utica Shale production areas. Columbia Pipeline Group also operates one of the nation's largest underground natural gas storage systems. Columbia Pipeline Group is listed on the NYSE under the ticker symbol CPGX. Additional information can be found at www.cpg.com.
About Columbia Pipeline Partners LP
Columbia Pipeline Partners LP, based in Houston, Texas, is a fee-based, growth-oriented master limited partnership formed to own, operate and develop a growing portfolio of natural gas pipelines, storage and related midstream assets.
Columbia Pipeline Partners' business and operations are conducted through CPG OpCo LP and its subsidiaries, which own and operate substantially all of the natural gas transmission, storage and midstream assets of Columbia Pipeline Group, Inc. Columbia Pipeline Group operates approximately 15,000 miles of strategically located interstate pipelines extending from New York to the Gulf of Mexico, one of the nation's largest underground natural gas storage systems, and a growing portfolio of related gathering and processing assets. The majority of its assets overlay the Marcellus and Utica Shale production areas. Additional information can be found at www.columbiapipelinepartners.com and www.cpg.com.
SOURCE Columbia Pipeline Group, Inc.; Columbia Pipeline Partners LP
HOUSTON, Jan. 8, 2016 /PRNewswire/ -- Columbia Pipeline Group, Inc. ("CPG") (NYSE: CPGX) and Columbia Pipeline Partners LP (NYSE: CPPL) (together, "Columbia") announced today that the Federal Energy Regulatory Commission ("FERC") has issued a certificate authorizing Columbia Gas Transmission, LLC ("Columbia Gas") to construct and operate the Utica Access Project in West Virginia.
"We are pleased that the FERC has approved our application to construct the Utica Access Project," said Columbia President Glen Kettering. "This is another Columbia growth project that connects abundant, but constrained, Appalachian supplies to higher value domestic markets."
The Utica Access Project will be placed in service in the fourth quarter of 2016 and deliver up to 205 million cubic feet per day of Utica supply to the highly liquid Columbia Gas, Appalachia Pool.
Columbia also announced that Columbia Gas has formally filed a certificate application with the FERC for its WB XPress Project in West Virginia and Virginia.
The approximately $850 million WB XPress Project will deliver up to 1.3 billion cubic feet per day of Appalachian supply to expanding Mid-Atlantic markets, as well as Gulf Coast markets via a downstream, third-party interstate pipeline expansion from an existing interconnect in West Virginia.
"The CPG team is sharply focused on the execution of our extensive growth and modernization investment inventory," said Kettering. "Hitting these key project milestones keeps us squarely on track to deliver these projects on time and on budget."
Prior to filing its WB XPress certificate application, Columbia worked with a number of communities, landowners and agencies at the federal, state and local level for well over a year. Columbia will continue to work closely with all stakeholders throughout each phase of the project.
Pending FERC authorization, Columbia expects to commence WB XPress construction in 2017 and place the project in service in the second half of 2018.
About Columbia Pipeline Group, Inc.
Columbia Pipeline Group, Inc. operates approximately 15,000 miles of strategically located interstate pipeline, gathering and processing assets extending from New York to the Gulf of Mexico, including an extensive footprint in the Marcellus and Utica shale production areas. Columbia Pipeline Group, Inc. also operates one of the nation's largest underground natural gas storage systems. Columbia Pipeline Group, Inc. is listed on the NYSE under the ticker symbol CPGX.
About Columbia Pipeline Partners LP
Columbia Pipeline Partners LP, based in Houston, Texas, is a fee-based, growth-oriented master limited partnership formed to own, operate and develop a growing portfolio of natural gas pipelines, storage and related midstream assets.
Columbia Pipeline Partners' business and operations are conducted through CPG OpCo LP and its subsidiaries, which own and operate substantially all of the natural gas transmission, storage and midstream assets of Columbia Pipeline Group, Inc. Columbia Pipeline Group operates approximately 15,000 miles of strategically located interstate pipelines extending from New York to the Gulf of Mexico, one of the nation's largest underground natural gas storage systems, and a growing portfolio of related gathering and processing assets. The majority of its assets overlay the Marcellus and Utica Shale production areas. Additional information can be found at www.columbiapipelinepartners.com or www.cpg.com.
Forward-Looking Statements
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission ("SEC"). These statements include statements regarding the intent, belief or current expectations of Columbia and its management. Although Columbia believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition, and other risk factors included in Columbia's reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Columbia expressly disclaims any duty to update any of the forward-looking statements contained in this press release.
SOURCE Columbia Pipeline Group, Inc.
Alberta Carbon Grid (ACG) Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Pembina Pipeline Corporation
TC Energy Corporation
Alberta XPress Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Bison XPress Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Northern Border Pipeline Company
TC Energy Corporation
Buckeye Xpress (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
CITGO Sour Lake Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Canadian Mainline Expansion (2019) (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Canadian Mainline Tolling Option (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Central Mexico Refined Products Distribution Hub (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Grupo TMM SA
Sierra Oil & Gas
Collierville Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Columbia Gulf Mainline 100 and Mainline 200 Replacement Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Columbia Gulf Transmission, LLC
East Lateral XPress (subscriber access)
Status: (subscriber access)
Parent Entities:
Columbia Gulf Transmission, LLC
TC Energy Corporation
El Encino - Topolobampo Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Transportadora de Gas Natural del Noroeste
Elwood Power/ANR Horsepower Replacement Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
ANR Pipeline Company
Energy East Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
GTN Xpress Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Gas Transmission Northwest LLC
Gibraltar Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Gillis Access Extension (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Gills Access Projcect (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Grand Chenier XPress Phase 1 (subscriber access)
Status: (subscriber access)
Parent Entities:
ANR Pipeline Company
TC Energy Corporation
Grand Chenier XPress Phase 2 (subscriber access)
Status: (subscriber access)
Parent Entities:
ANR Pipeline Company
TC Energy Corporation
Grand Rapids Pipeline Project Phase I (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Brion Energy
Grand Rapids Pipeline Project Phase II (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Brion Energy
Heartland Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
HoustonLink Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Magellan Midstream Partners LP
Iroquois ExC Project (Enhancement by Compression) (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Iroquois Gas Transmission System, LP.
Keystone Hardisty Terminal (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Keystone Motiva Port Arthur Lateral (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Keystone Port Neches Lateral (TC Energy) (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Keystone XL Crude Oil Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
King's North Connection Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Leach Xpress (subscriber access)
Status: (subscriber access)
Parent Entities:
Columbia Pipeline Group
TC Energy Corporation
Line 8000 Replacement Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Louisiana Xpress Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Columbia Gulf Transmission, LLC
NGTL 2021 System Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
NGTL 2023 North Corridor System Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
NGTL Edson Mainline Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
North Montney Mainline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Northern Courier Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Ontario Pumped Storage Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Prince Rupert Gas Transmission Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Rayne Xpress (subscriber access)
Status: (subscriber access)
Parent Entities:
Columbia Gulf Transmission, LLC
Saddle West Natural Gas Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Saint Sébastien Extension Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Southeast Gateway Pipeline (Mexico) (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Comisión Federal de Electricidad
Sundre Crossover Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
TC Energy Valhalla North and Berland River Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
TC Terminals Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Texas - Tuxpan (Marine) Pipeline (Sur de Texas) (subscriber access)
Status: (subscriber access)
Parent Entities:
Infraestructura Marina del Golfo (IMG)
TC Energy Corporation
IEnova Infraestructura Energetica
Towerbirch Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
TransCanada Eastern Mainline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
TransCanada Merrick Mainline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
TransCanada NGTL System Expansion (2021-2022) (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
TransCanada NGTL System Upgrades (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Tula-Villa de Reyes Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Transportadora de Gas Natural de la Huasteca, S. de RL de CV
Tuscarora Xpress Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Tuscarora Gas Transmission Company
TC Energy Corporation
Tuxpan - Tula Pipeline (Tula Pipeline Project) (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Transportadora de Gas Natural de la Huasteca, S. de RL de CV
Tuxpan Refined Products Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Grupo TMM SA
Sierra Oil & Gas
Tuxpan Refined Products Terminal (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Grupo TMM SA
Sierra Oil & Gas
Tuxpan-Mayakan Natural Gas Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
VNBR NGTL System Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
VR Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Columbia Gas Transmission, LLC
TC Energy Corporation
Vaughan Mainline Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Ventura Express Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Virginia Reliability Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Columbia Gas Transmission, LLC
TC Energy Corporation
WR Project (subscriber access)
Status: (subscriber access)
Parent Entities:
ANR Pipeline Company
TC Energy Corporation
West Path Delivery Program (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
White Spruce Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
Wisconsin Access Project (subscriber access)
Status: (subscriber access)
Parent Entities:
TC Energy Corporation
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