Boardwalk Pipeline Partners LP (BWP, Financial) filed Quarterly Report for the period ended 2009-09-30.
Boardwalk Pipeline Partners LP is a master limited partnership engaged through its subsidiaries Texas Gas Transmission LLC and Gulf South Pipeline Company LP in the interstate transportation and storage of natural gas. Boardwalk Pipeline Partners Lp has a market cap of $4.85 billion; its shares were traded at around $26.3 with a P/E ratio of 20.6 and P/S ratio of 6.2. The dividend yield of Boardwalk Pipeline Partners Lp stocks is 7.4%.
Operating costs and expenses for the third quarter 2009 increased $48.2 million, or 47%, to $151.0 million, compared to $102.8 million for the third quarter 2008. The primary factors for the increases were higher depreciation and property taxes of $27.8 million associated with a larger asset base from expansion. Administrative and general expenses increased $4.0 million mainly due to increases in employee benefits as a result of reductions in trust assets for our pension and post-retirement benefit plans driven by investment losses, and increases in unit-based compensation from an increase in the price of our common units. Operations and maintenance expenses and losses on disposal of assets were $1.9 million due to pipeline investigation and retirement costs related to the East Texas Pipeline. Fuel and gas transportation expenses decreased $21.2 million primarily as a result of lower natural gas prices. The 2008 period was favorably impacted by a $19.7 million gain on the sale of gas related to the Western Kentucky Storage Expansion project and a $16.5 million gain on the disposition of coal reserves.
Operating revenues for the nine months ended September 30, 2009, increased $51.0 million, or 9%, to $630.2 million, compared to $579.2 million for the nine months ended September 30, 2008. Gas transportation revenues, excluding fuel, increased $87.3 million primarily due to our expansion projects. PAL revenues increased $12.6 million as a result of favorable natural gas price spreads and gas storage revenues increased $4.2 million mainly from an increase in storage capacity associated with our Western Kentucky Storage Expansion project. These increases were partially offset by lower fuel revenues of $53.1 million due to lower natural gas prices, partly offset by higher retained volumes.
Operating costs and expenses for the nine months ended September 30, 2009, increased $136.1 million, or 44%, to $444.0 million, compared to $307.9 million for the nine months ended September 30, 2008. The primary drivers were increased depreciation and property taxes of $84.7 million associated with an increase in our asset base due to expansion. Operations and maintenance expense increased $10.6 million due to major maintenance projects and expansion project operations. Administrative and general expense increased $11.0 million due to increases in outside services, unit-based compensation from an increase in the price of our common units and employee benefits as a result of reductions in trust assets for our pension and post-retirement benefit plans driven by investment losses. Operations and maintenance expenses and losses on disposal of assets were approximately $6.0 million due to pipeline investigation and retirement costs related to the East Texas Pipeline. Fuel and gas transportation expenses decreased $41.8 million primarily as a result of reduced natural gas prices. The 2008 period was favorably impacted by a $34.4 million gain on the sale of gas related to the Western Kentucky Storage Expansion project, a $16.5 million gain on the disposition of coal reserves and an $11.2 million gain from the settlement of a contract claim.
In August 2009, we completed a public offering of 8.1 million of our common units at a price of $23.00 per unit. We received net cash proceeds of approximately $183.1 million after deducting underwriting discounts and offering expenses of $7.0 million and including a $3.8 million contribution received from our general partner to maintain its 2% general partner interest. Also in August 2009, we received net proceeds of approximately $346.7 million after deducting initial purchaser discounts and offering expenses of $3.3 million from the sale of $350.0 million of 5.75% senior unsecured notes of Boardwalk Pipelines due September 15, 2019.
Net cash provided by financing activities decreased $1,064.3 million to $201.4 million for the nine months ended September 30, 2009, compared to $1,265.7 million for the comparable 2008 period. These decreases resulted from a $615.7 million reduction in proceeds from the issuance and sale of equity, including related general partner contributions, a $370.0 million decrease in proceeds from the issuance of debt and net borrowings under our revolving credit facility and a $77.6 million increase in distributions to our partners.
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Boardwalk Pipeline Partners LP is a master limited partnership engaged through its subsidiaries Texas Gas Transmission LLC and Gulf South Pipeline Company LP in the interstate transportation and storage of natural gas. Boardwalk Pipeline Partners Lp has a market cap of $4.85 billion; its shares were traded at around $26.3 with a P/E ratio of 20.6 and P/S ratio of 6.2. The dividend yield of Boardwalk Pipeline Partners Lp stocks is 7.4%.
Highlight of Business Operations:
Operating revenues for the third quarter 2009 increased $13.8 million, or 7%, to $205.4 million, compared to $191.6 million for the third quarter 2008. Gas transportation revenues, excluding fuel, increased $27.7 million, primarily from our expansion projects. PAL revenues increased $6.5 million due to increased parking opportunities and favorable summer-to-summer natural gas price spreads. The increases were partially offset by lower fuel revenues of $21.0 million due to unfavorable natural gas prices.Operating costs and expenses for the third quarter 2009 increased $48.2 million, or 47%, to $151.0 million, compared to $102.8 million for the third quarter 2008. The primary factors for the increases were higher depreciation and property taxes of $27.8 million associated with a larger asset base from expansion. Administrative and general expenses increased $4.0 million mainly due to increases in employee benefits as a result of reductions in trust assets for our pension and post-retirement benefit plans driven by investment losses, and increases in unit-based compensation from an increase in the price of our common units. Operations and maintenance expenses and losses on disposal of assets were $1.9 million due to pipeline investigation and retirement costs related to the East Texas Pipeline. Fuel and gas transportation expenses decreased $21.2 million primarily as a result of lower natural gas prices. The 2008 period was favorably impacted by a $19.7 million gain on the sale of gas related to the Western Kentucky Storage Expansion project and a $16.5 million gain on the disposition of coal reserves.
Operating revenues for the nine months ended September 30, 2009, increased $51.0 million, or 9%, to $630.2 million, compared to $579.2 million for the nine months ended September 30, 2008. Gas transportation revenues, excluding fuel, increased $87.3 million primarily due to our expansion projects. PAL revenues increased $12.6 million as a result of favorable natural gas price spreads and gas storage revenues increased $4.2 million mainly from an increase in storage capacity associated with our Western Kentucky Storage Expansion project. These increases were partially offset by lower fuel revenues of $53.1 million due to lower natural gas prices, partly offset by higher retained volumes.
Operating costs and expenses for the nine months ended September 30, 2009, increased $136.1 million, or 44%, to $444.0 million, compared to $307.9 million for the nine months ended September 30, 2008. The primary drivers were increased depreciation and property taxes of $84.7 million associated with an increase in our asset base due to expansion. Operations and maintenance expense increased $10.6 million due to major maintenance projects and expansion project operations. Administrative and general expense increased $11.0 million due to increases in outside services, unit-based compensation from an increase in the price of our common units and employee benefits as a result of reductions in trust assets for our pension and post-retirement benefit plans driven by investment losses. Operations and maintenance expenses and losses on disposal of assets were approximately $6.0 million due to pipeline investigation and retirement costs related to the East Texas Pipeline. Fuel and gas transportation expenses decreased $41.8 million primarily as a result of reduced natural gas prices. The 2008 period was favorably impacted by a $34.4 million gain on the sale of gas related to the Western Kentucky Storage Expansion project, a $16.5 million gain on the disposition of coal reserves and an $11.2 million gain from the settlement of a contract claim.
In August 2009, we completed a public offering of 8.1 million of our common units at a price of $23.00 per unit. We received net cash proceeds of approximately $183.1 million after deducting underwriting discounts and offering expenses of $7.0 million and including a $3.8 million contribution received from our general partner to maintain its 2% general partner interest. Also in August 2009, we received net proceeds of approximately $346.7 million after deducting initial purchaser discounts and offering expenses of $3.3 million from the sale of $350.0 million of 5.75% senior unsecured notes of Boardwalk Pipelines due September 15, 2019.
Net cash provided by financing activities decreased $1,064.3 million to $201.4 million for the nine months ended September 30, 2009, compared to $1,265.7 million for the comparable 2008 period. These decreases resulted from a $615.7 million reduction in proceeds from the issuance and sale of equity, including related general partner contributions, a $370.0 million decrease in proceeds from the issuance of debt and net borrowings under our revolving credit facility and a $77.6 million increase in distributions to our partners.
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