Boardwalk Announces Fourth Quarter 2011 Results And Increases Quarterly Distribution To $0.53 Per Unit

Boardwalk Pipeline Partners, LP, (NYSE:BWP) announced today that it has declared a quarterly cash distribution per common unit of $0.53 ($2.12 annualized) payable on February 23, 2012, to unitholders of record as of February 16, 2012.

The Partnership also announced its results for the fourth quarter and year ended December 31, 2011, which included the following items:

• Operating revenues of $296.9 million for the quarter and $1,138.8 million for the year ended December 31, 2011, a 2% decrease and a 2% increase from $302.0 million and $1,116.8 million in the comparable 2010 periods;
• Net income of $74.6 million for the quarter and $220.0 million for the year ended December 31, 2011, a 16% and 24% decrease from $88.9 million and $289.4 million in the comparable 2010 periods;
• Earnings before interest, taxes, depreciation and amortization (EBITDA) of $170.7 million for the quarter and $617.7 million for the year ended December 31, 2011, a 7% and 6% decrease from $184.3 million and $658.2 million in the comparable 2010 periods; and
• Distributable cash flow of $127.4 million for the quarter and $390.9 million for the year ended December 31, 2011, an 8% increase and 14% decrease from $118.0 million and $454.3 million in the comparable 2010 periods.

Operating results for the fourth quarter of 2011 were primarily driven by lower operating revenues due to lower throughput mainly from mild winter weather and lower natural gas prices negatively impacting revenues from retained fuel. Operating expenses were essentially flat as compared with the 2010 period, excluding impairments and losses of $3.0 million related to the disposal of materials and other assets and the effects of a $5.4 million gain on the sale of storage gas which impacted the 2010 period. The effects of the impairment charges and losses, the acquisition of the Petal and Hattiesburg assets in which the Partnership holds a 20% equity interest and the 2010 gain on the sale of storage gas reduced net income and EBITDA for the fourth quarter of 2011 compared to the 2010 period by $9.5 million.