HOUSTON--(BUSINESS WIRE)--El Paso Pipeline Partners, L.P. (NYSE: EPB) today announced its third
quarter cash distribution per common unit of $0.65 ($2.60 annualized)
payable on Nov. 14, 2014, to unitholders of record as of Oct. 31, 2014.
This distribution is the same as the second quarter 2014 distribution.
“EPB had a good third quarter with distributable cash flow 18 percent
higher than in the same period last year, and we expect to exceed our
distributable cash flow budget for the full year,” said Chairman and CEO
Richard D. Kinder. “Earnings before DD&A and certain items were $289
million, slightly favorable compared to $286 million for the third
quarter of 2013. These results were attributable to contributions from
EPB’s acquisition of Kinder Morgan, Inc.’s (KMI) interests in Ruby
Pipeline, Gulf LNG and Young Gas Storage, partially offset by the
previously announced rate case settlements that resulted in lower rates
on Southern Natural Gas (SNG) and Wyoming Interstate Company (WIC)
pipelines, along with lower rates on contract renewals on WIC.”
EPB reported third quarter distributable cash flow before certain items
of $150 million, up 18 percent from $127 million for the same period
last year. Distributable cash flow per unit before certain items was
$0.65, a 12 percent increase from $0.58 for the third quarter of 2013.
Net income was $130 million in the third quarter of 2014 compared to
$141 million for the same period last year.
For the first nine months of 2014, EPB generated distributable cash flow
before certain items of $454 million, a 7 percent increase from $425
million for the same period in 2013. Distributable cash flow per unit
before certain items was $2.02 versus $1.96 for the first nine months
last year. Net income before certain items was $434 million compared to
$456 million for the first nine months of 2013. Including certain items,
net income was $434 million for the first three quarters compared to
$451 million for the same period last year.
Kim Dang Joins Office of the Chairman
The Kinder Morgan companies have named Chief Financial Officer Kim Dang
to the Office of the Chairman. Ms. Dang will be involved in the
strategic and policy decisions of the company, the day-to-day management
of the company and the company’s capital allocation to new investments.
“I’m delighted to add Kim to the Office of the Chairman in recognition
of her contributions over the years, as well as the considerable talent
and experience she will bring to bear on continuing our success at
Kinder Morgan,” said Kinder. The Office of the Chairman also includes
Chairman and CEO Rich Kinder and President and Chief Operating Officer
Steve Kean.
2014 Outlook
KMI announced Aug. 10, 2014, that it will acquire all of the publicly
held shares/units of Kinder Morgan Energy Partners, Kinder Morgan
Management, and EPB in an approximately $70 billion transaction. The
boards of all of the Kinder Morgan companies voted to recommend the
transaction to their respective unitholders and shareholders. After the
transaction, KMI will have a projected dividend of $2.00 per share for
2015, a 16 percent increase over the budgeted 2014 KMI dividend target
of $1.72 per share.
KMI has received all necessary regulatory approvals except its
Registration Statement on Form S-4 has not yet been declared effective
by the Securities and Exchange Commission. The company expects to
announce the date of EPB’s unitholder meeting in the near future and
continues to anticipate the transaction will close before year end. For
more information on this transaction, please visit the Kinder Morgan web
site at www.kindermorgan.com.
Absent a close of the proposed transaction with KMI prior to the fourth
quarter record date (typically in late January), EPB would expect to
declare cash distributions of $2.60 per unit for 2014. Assuming the
anticipated fourth quarter close of the transaction, all KMI
shareholders as of the fourth quarter record date will receive the KMI
dividend for that quarter.
Other News
-
Work on a front-end engineering and design study is expected to be
completed by early 2015 for the proposed Gulf LNG project to install
LNG liquefaction and export facilities at the existing LNG
regasification terminal near Pascagoula, Mississippi. The required
environmental review by the Federal Energy Regulatory Commission
(FERC) is also underway. In the second quarter of 2015, Gulf LNG
Liquefaction Company (GLLC) expects to file with FERC for an
application for Natural Gas Act Section 3 authorization to construct
the project. As previously announced, the company entered into a
memorandum of understanding with a third party to begin negotiations
on a definitive liquefaction agreement. The proposed project, which
already has Free Trade Agreement (FTA) LNG export authority, would
provide up to 10 million tonnes per year of LNG export capacity. An
application to export to non-FTA countries is pending. Subject to
obtaining sufficient commitments from potential customers and
regulatory approval, construction could begin in June 2016, with
initial exports of LNG occurring in 2019.
-
Planning and engineering activities continue for the proposed Elba
Liquefaction Project near Savannah, Georgia. In the first quarter,
subsidiaries of EPB and Shell filed a certificate application with the
FERC for the Elba Liquefaction Project, seeking authority to construct
and operate new natural gas liquefaction and export facilities at
EPB’s Southern LNG Company’s natural gas terminal on Elba Island, near
Savannah. The project has already received FTA LNG export authority
and an application to export to non-FTA countries is pending, although
not a precondition for the liquefaction contract with Shell. At full
development, the Elba Liquefaction Project is expected to have total
capacity of approximately 350 million cubic feet per day of natural
gas (2.5 million tonnes per year of LNG). EPB’s expected investment in
the liquefaction project and related facilities is approximately $1.3
billion. Subject to regulatory approvals, initial production from the
project is expected to occur in early 2017.
-
As previously announced, work continues on the Elba Express Company
and SNG expansion projects to provide incremental natural gas
transportation service to support the needs of customers in Georgia,
South Carolina and northern Florida. Expansion capacity would also
serve the proposed Elba Liquefaction Project.
Financings
-
EPB raised approximately $75 million in gross proceeds under its
at-the-market equity program during the third quarter, bringing EPB’s
total equity issuances to approximately $503 million through the first
nine months of the year.
El Paso Pipeline Partners (NYSE: EPB) is a publicly traded pipeline
limited partnership. It owns an interest in or operates more than 13,000
miles of interstate natural gas transportation pipelines in the Rockies
and the Southeast, natural gas storage facilities with a capacity of
over 100 billion cubic feet and LNG assets in Georgia and Mississippi.
The general partner of EPB is owned by Kinder Morgan, Inc. (NYSE: KMI).
Kinder Morgan is the largest midstream and the third largest energy
company in North America with a combined enterprise value of
approximately $120 billion. It owns an interest in or operates
approximately 80,000 miles of pipelines and 180 terminals. Its pipelines
transport natural gas, gasoline, crude oil, CO2 and other
products, and its terminals store petroleum products and chemicals and
handle such products as ethanol, coal, petroleum coke and steel. KMI
owns the general partner interests of Kinder Morgan Energy Partners,
L.P. (NYSE: KMP) and El Paso Pipeline Partners, L.P. (NYSE: EPB), along
with limited partner interests in KMP, Kinder Morgan Management, LLC
(NYSE: KMR) and EPB. For more information please visit www.kindermorgan.com.
Please join Kinder Morgan at 4:30 p.m. Eastern Time on Wednesday,
Oct. 15, at www.kindermorgan.com
for a LIVE webcast conference call which will include a discussion of
EPB’s third quarter earnings.
The non-generally accepted accounting principles, or non-GAAP,
financial measures of distributable cash flow before certain items, both
in the aggregate and per unit, and earnings before depreciation,
depletion, amortization, or DD&A, and certain items, are presented in
this news release. Distributable cash flow before certain items
is a significant metric used by us and by external users of our
financial statements, such as investors, research analysts, commercial
banks and others, to compare basic cash flows generated by us to the
cash distributions we expect to pay our unitholders on an ongoing basis.
Management uses this metric to evaluate our overall performance. It
also allows management to simply calculate the coverage ratio of
estimated ongoing cash flows to expected cash distributions. Distributable
cash flow before certain items is also an important non-GAAP financial
measure for our unitholders because it serves as an indicator of our
success in providing a cash return on investment. This financial
measure indicates to investors whether or not we are generating cash
flow at a level that can sustain or support an increase in the quarterly
distributions we are paying pursuant to our partnership agreement. Our
partnership agreement requires us to distribute all available cash. Distributable
cash flow before certain items and similar measures used by other
publicly traded partnerships are also quantitative measures used in the
investment community because the value of a unit of such an entity is
generally determined by the unit’s yield (which in turn is based on the
amount of cash distributions the entity pays to a unitholder relative to
unit price). The economic substance behind our use of
distributable cash flow before certain items is to measure and estimate
the ability of our assets to generate cash flows sufficient to make
distributions to our investors.
We define distributable cash flow before certain items to be limited
partners’ pretax income before certain items and DD&A, less sustaining
capital expenditures for EPB, plus DD&A less sustaining capital
expenditures for our equity method investees Bear Creek, WYCO, beginning
January 1, 2013 Elba Liquefaction, and beginning April 30, 2014 Ruby
Pipeline, Gulf LNG, and Young Gas Storage plus certain other
income and expenses, net (which primarily includes deferred revenue,
non-cash AFUDC equity and other items). Distributable cash flow
before certain items per unit is distributable cash flow before certain
items divided by average outstanding units. “Certain items” are
items that are required by GAAP to be reflected in net income, but
typically either (1) do not have a cash impact, for example, goodwill
impairments, allocated compensation for which we will never be
responsible, and results from assets prior to our ownership that are
required to be reflected in our results due to accounting rules
regarding entities under common control, or (2) by their nature are
separately identifiable from our normal business operations and in our
view are likely to occur only sporadically, for example certain legal
settlements, hurricane impacts and casualty losses. Management
uses this measure and believes it is important to users of our financial
statements because it believes the measure more effectively reflects our
business’ ongoing cash generation capacity than a similar measure with
the certain items included. For similar reasons, management uses
earnings before DD&A and certain items in its analysis of the
performance and management of our business. We believe earnings
before DD&A and certain items is a significant performance metric
because it enables us and external users of our financial statements to
better understand our ability to generate cash on an ongoing basis. We
believe it is useful to investors because it is a measure that
management believes is important and that our chief operating decision
makers use for purposes of making decisions and assessing our
performance.
We believe the GAAP measure most directly comparable to distributable
cash flow before certain items is net income. Our calculation of
distributable cash flow before certain items, which begins with net
income after adjusting for certain items that are specifically
identified in the accompanying tables, is set forth in those tables. Net
income before certain items is presented primarily because we use it in
this calculation. Earnings before DD&A as presented in our GAAP
financials is the measure most directly comparable to earnings before
DD&A and certain items. Earnings before DD&A and certain
items is calculated by adjusting for the certain items attributable to
the partnership, which are specifically identified in the footnotes to
the accompanying tables, from earnings before DD&A.
Our non-GAAP measures described above should not be considered as an
alternative to GAAP net income, operating income or any other GAAP
measure. Distributable cash flow before certain items and
earnings before DD&A and certain items are not financial measures in
accordance with GAAP and have important limitations as analytical tools.
You should not consider either of these non-GAAP measures in
isolation or as a substitute for an analysis of our results as reported
under GAAP. Because distributable cash flow before certain items
excludes some but not all items that affect net income and because
distributable cash flow measures are defined differently by different
companies in our industry, our distributable cash flow before certain
items may not be comparable to distributable cash flow measures of other
companies. Earnings before DD&A and certain items has similar
limitations. Management compensates for the limitations of these
non-GAAP measures by reviewing our comparable GAAP measures,
understanding the differences between the measures and taking this
information into account in its analysis and its decision making
processes.
This news release includes forward-looking statements. These
forward-looking statements are subject to risks and uncertainties and
are based on the beliefs and assumptions of management, based on
information currently available to them. Although EPB believes
that these forward-looking statements are based on reasonable
assumptions, it can give no assurance that such assumptions will
materialize. Important factors that could cause actual results to
differ materially from those in the forward-looking statements herein
include those enumerated in EPB’s reports filed with the Securities and
Exchange Commission. Forward-looking statements speak only as of
the date they were made, and except to the extent required by law, EPB
undertakes no obligation to update or review any forward-looking
statement because of new information, future events or other factors.
Because of these uncertainties, readers should not place undue
reliance on these forward-looking statements.
IMPORTANT ADDITIONAL INFORMATION AND WHERE TO FIND IT
This communication may be deemed to be solicitation material in
respect of the proposed acquisition by KMI of each of Kinder Morgan
Energy Partners, L.P. (“KMP”), Kinder Morgan Management, LLC (“KMR”) and
El Paso Pipeline Partners, L.P. (“EPB”) (collectively, the “Proposed
Transactions”). KMI has filed with the Securities and Exchange
Commission (“SEC”) an amendment to its registration statement on Form
S-4 (“Registration Statement”), which contains a preliminary proxy
statement for KMI and a preliminary proxy statement / prospectus for
each of KMP, KMR and EPB. The Registration Statement has not yet
been declared effective by the SEC. Each of KMI, KMP, KMR and EPB
plan to mail to their respective security holders, as applicable, a
proxy statement or proxy statement / prospectus in connection with the
Proposed Transactions following the Registration Statement being
declared effective by the SEC. The Registration Statement, the
preliminary KMI proxy statement and each preliminary proxy statement /
prospectus contain important information about KMI, KMP, KMR, EPB, the
Proposed Transactions and related matters. INVESTORS AND
SECURITY HOLDERS ARE URGED TO READ CAREFULLY THE REGISTRATION STATEMENT,
THE APPLICABLE PROXY STATEMENT OR PROXY STATEMENT / PROSPECTUS AND ANY
OTHER DOCUMENTS THAT HAVE BEEN FILED OR WILL BE FILED WITH THE SEC,
INCLUDING THE DEFINITIVE KMI PROXY STATEMENT AND EACH DEFINITIVE PROXY
STATEMENT / PROSPECTUS, IN CONNECTION WITH THE PROPOSED TRANSACTIONS OR
INCORPORATED BY REFERENCE IN THE PROXY STATEMENT OR THE APPLICABLE PROXY
STATEMENT / PROSPECTUS.
Investors and security holders will be able to obtain copies of the
KMI proxy statement and each proxy statement / prospectus as well as
other filings containing information about KMI, KMP, KMR and EPB,
without charge, at the SEC’s website, http://www.sec.gov.
Copies of documents filed with the SEC by KMI, KMP, KMR and EPB will
be made available free of charge on Kinder Morgan, Inc.’s website at http://www.kindermorgan.com/investor/
or by written request by contacting the investor relations department of
KMI, KMP, KMR or EPB at the following address: 1001 Louisiana Street,
Suite 1000, Houston, Texas 77002, Attention: Investor Relations or by
phone at (713) 369-9490 or by email at km_ir@kindermorgan.com.
NO OFFER OR SOLICITATION
This communication shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to buy
any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction. No offer of securities shall be made except by
means of a prospectus meeting the requirements of Section 10 of the
Securities Act of 1933, as amended.
PARTICIPANTS IN THE SOLICITATION
KMI, KMP, KMR and EPB, and their respective directors and executive
officers, may be deemed to be participants in the solicitation of
proxies in respect of the Proposed Transactions. Information
regarding the directors and executive officers of KMI is contained in
KMI’s Form 10-K for the year ended December 31, 2013, and its proxy
statement filed on April 9, 2014, each of which has been filed with the
SEC. Information regarding the directors and executive officers of KMP’s
general partner and KMR, the delegate of KMP’s general partner, is
contained in KMP’s Form 10-K for the year ended December 31, 2013, which
has been filed with the SEC. Information regarding the directors and
executive officers of KMR is contained in KMR’s Form 10-K for the year
ended December 31, 2013, which has been filed with the SEC. Information
regarding the directors and executive officers of EPB’s general partner
is contained in EPB’s Form 10-K for the year ended December 31, 2013,
which has been filed with the SEC.
|
El Paso Pipeline Partners, L.P.
|
Preliminary Consolidated Statements of Income
|
(Unaudited)
|
(in millions, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
352
|
|
|
|
$
|
369
|
|
|
|
|
$
|
1,087
|
|
|
|
$
|
1,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs, expenses and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and maintenance
|
|
|
|
61
|
|
|
|
|
68
|
|
|
|
|
|
166
|
|
|
|
|
177
|
|
Depreciation and amortization
|
|
|
|
53
|
|
|
|
|
49
|
|
|
|
|
|
160
|
|
|
|
|
144
|
|
General and administrative
|
|
|
|
20
|
|
|
|
|
21
|
|
|
|
|
|
59
|
|
|
|
|
63
|
|
Taxes, other than income taxes
|
|
|
|
20
|
|
|
|
|
19
|
|
|
|
|
|
64
|
|
|
|
|
63
|
|
|
|
|
|
154
|
|
|
|
|
157
|
|
|
|
|
|
449
|
|
|
|
|
447
|
|
Operating income
|
|
|
|
198
|
|
|
|
|
212
|
|
|
|
|
|
638
|
|
|
|
|
667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from equity investments
|
|
|
|
18
|
|
|
|
|
3
|
|
|
|
|
|
35
|
|
|
|
|
9
|
|
Amortization of excess cost of equity investments
|
|
|
|
(8
|
)
|
|
|
|
-
|
|
|
|
|
|
(14
|
)
|
|
|
|
-
|
|
Interest expense, net
|
|
|
|
(78
|
)
|
|
|
|
(75
|
)
|
|
|
|
|
(227
|
)
|
|
|
|
(226
|
)
|
Other, net
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
|
|
2
|
|
|
|
|
1
|
|
Net income
|
|
|
$
|
130
|
|
|
|
$
|
141
|
|
|
|
|
$
|
434
|
|
|
|
$
|
451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Limited Partners' interest in
net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
130
|
|
|
|
$
|
141
|
|
|
|
|
$
|
434
|
|
|
|
$
|
451
|
|
Plus: Severance costs allocated to General Partner
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
1
|
|
Less: General Partner's 2% interest allocation
|
|
|
|
(3
|
)
|
|
|
|
(3
|
)
|
|
|
|
|
(9
|
)
|
|
|
|
(9
|
)
|
Less: General Partner's incentive distribution
|
|
|
|
(55
|
)
|
|
|
|
(52
|
)
|
|
|
|
|
(162
|
)
|
|
|
|
(144
|
)
|
Limited Partners' interest in net income
|
|
|
$
|
72
|
|
|
|
$
|
86
|
|
|
|
|
$
|
263
|
|
|
|
$
|
299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited Partners' net income per unit -
Basic and Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
0.31
|
|
|
|
$
|
0.40
|
|
|
|
|
$
|
1.17
|
|
|
|
$
|
1.38
|
|
Weighted average units outstanding
|
|
|
|
231
|
|
|
|
|
218
|
|
|
|
|
|
225
|
|
|
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per unit cash distribution declared for the period
|
|
|
$
|
0.65
|
|
|
|
$
|
0.65
|
|
|
|
|
$
|
1.95
|
|
|
|
$
|
1.90
|
|
|
Notes:
|
|
Effective at the close of business on April 30, 2014, EPB acquired
from KMI a 50% equity interest in Ruby Pipeline, an indirect 50%
equity interest in Gulf LNG and an indirect equity interest of
47.5% in Young Gas Storage. Results related to these acquired
equity method investments are included in "Earnings from equity
investments" effective with the date of acquisition.
|
|
|
El Paso Pipeline Partners, L.P.
|
Preliminary Reconciliation of Distributable Cash Flow to Net
Income
|
(Unaudited)
|
(in millions, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
Earnings before DD&A, amortization of excess investments and certain
items
|
|
|
$
|
289
|
|
|
|
$
|
286
|
|
|
|
|
$
|
894
|
|
|
|
$
|
888
|
|
DD&A and amortization of excess investments
|
|
|
|
61
|
|
|
|
|
49
|
|
|
|
|
|
174
|
|
|
|
|
144
|
|
Earnings contribution
|
|
|
|
228
|
|
|
|
|
237
|
|
|
|
|
|
720
|
|
|
|
|
744
|
|
General and administrative expense
|
|
|
|
(20
|
)
|
|
|
|
(21
|
)
|
|
|
|
|
(59
|
)
|
|
|
|
(62
|
)
|
Interest expense, net
|
|
|
|
(78
|
)
|
|
|
|
(75
|
)
|
|
|
|
|
(227
|
)
|
|
|
|
(226
|
)
|
Net income before certain items
|
|
|
|
130
|
|
|
|
|
141
|
|
|
|
|
|
434
|
|
|
|
|
456
|
|
Certain items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash severance costs (1)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
SNG offshore assets hurricane repair costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(2
|
)
|
Sales and use tax reserve adjustment (2)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(2
|
)
|
Sub-total certain items
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(5
|
)
|
Net Income
|
|
|
$
|
130
|
|
|
|
$
|
141
|
|
|
|
|
$
|
434
|
|
|
|
$
|
451
|
|
Plus: Severance costs allocated to General Partner (1)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
1
|
|
Less: General Partner's 2% interest allocation
|
|
|
|
(3
|
)
|
|
|
|
(3
|
)
|
|
|
|
|
(9
|
)
|
|
|
|
(9
|
)
|
Less: General Partner's incentive distribution
|
|
|
|
(55
|
)
|
|
|
|
(52
|
)
|
|
|
|
|
(162
|
)
|
|
|
|
(144
|
)
|
Limited Partners' net income
|
|
|
$
|
72
|
|
|
|
$
|
86
|
|
|
|
|
$
|
263
|
|
|
|
$
|
299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before certain items
|
|
|
$
|
130
|
|
|
|
$
|
141
|
|
|
|
|
$
|
434
|
|
|
|
$
|
456
|
|
Less: General Partner's 2% interest allocation
|
|
|
|
(3
|
)
|
|
|
|
(3
|
)
|
|
|
|
|
(9
|
)
|
|
|
|
(9
|
)
|
Less: General Partner's incentive distribution
|
|
|
|
(55
|
)
|
|
|
|
(52
|
)
|
|
|
|
|
(162
|
)
|
|
|
|
(144
|
)
|
Limited Partners' net income before certain items
|
|
|
|
72
|
|
|
|
|
86
|
|
|
|
|
|
263
|
|
|
|
|
303
|
|
Depreciation and amortization (3)
|
|
|
|
92
|
|
|
|
|
49
|
|
|
|
|
|
226
|
|
|
|
|
144
|
|
Sustaining capital expenditures (4)
|
|
|
|
(12
|
)
|
|
|
|
(9
|
)
|
|
|
|
|
(28
|
)
|
|
|
|
(24
|
)
|
Other (5)
|
|
|
|
(2
|
)
|
|
|
|
1
|
|
|
|
|
|
(7
|
)
|
|
|
|
2
|
|
DCF before certain items - Limited Partners
|
|
|
$
|
150
|
|
|
|
$
|
127
|
|
|
|
|
$
|
454
|
|
|
|
$
|
425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / unit before certain items
|
|
|
$
|
0.31
|
|
|
|
$
|
0.40
|
|
|
|
|
$
|
1.17
|
|
|
|
$
|
1.40
|
|
DCF / unit before certain items
|
|
|
$
|
0.65
|
|
|
|
$
|
0.58
|
|
|
|
|
$
|
2.02
|
|
|
|
$
|
1.96
|
|
Weighted average units outstanding
|
|
|
|
231
|
|
|
|
|
218
|
|
|
|
|
|
225
|
|
|
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes ($ millions):
|
(1) Represents the non-cash severance costs included in General
and administrative expense allocated to EPB from El Paso as a
result of KMI's acquisition of El Paso in May 2012. EPB does not
have any obligation nor did EPB pay any amounts related to this
expense.
|
(2) Non-cash reserve adjustment related to periods prior to July
2012.
|
(3) Includes EPB's share of equity investees' DD&A: 3Q 2013 -
$0.2, YTD 2013 - $0.6, 3Q 2014 - $31.4 and YTD 2014 - $52.5.
|
(4) Includes EPB's share of equity investees' sustaining capital
expenditures: 3Q 2013 - $0.8, YTD 2013 - $2.4, 3Q 2014 - $0.7 and
YTD 2014 - $5.3.
|
(5) Includes deferred revenue and other non-cash items such as
AFUDC equity and other items.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transport Volumes (BBtu/d) (6)
|
|
|
|
8,798
|
|
|
|
|
8,025
|
|
|
|
|
|
8,590
|
|
|
|
|
8,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) Includes pipeline volumes for WIC, CIG, SNG, CPG, Elba Express
and Ruby. Volumes for the acquired pipeline are included for all
periods.
|
|
|
El Paso Pipeline Partners, L.P.
|
Preliminary Abbreviated Consolidated Balance Sheets
|
(Unaudited)
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
148
|
|
|
$
|
78
|
Other current assets
|
|
|
|
202
|
|
|
|
226
|
Property, plant and equipment, net
|
|
|
|
5,797
|
|
|
|
5,879
|
Investments
|
|
|
|
1,807
|
|
|
|
87
|
Regulatory assets and other assets
|
|
|
|
217
|
|
|
|
225
|
TOTAL ASSETS
|
|
|
$
|
8,171
|
|
|
$
|
6,495
|
|
|
|
|
|
|
|
LIABILITIES AND PARTNERS' CAPITAL
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
|
$
|
41
|
|
|
$
|
77
|
Other current liabilities
|
|
|
|
275
|
|
|
|
200
|
Long-term debt
|
|
|
|
4,741
|
|
|
|
4,171
|
Other
|
|
|
|
90
|
|
|
|
108
|
Total liabilities
|
|
|
|
5,147
|
|
|
|
4,556
|
|
|
|
|
|
|
|
Partners' capital
|
|
|
|
|
|
|
Accumulated other comprehensive income
|
|
|
|
3
|
|
|
|
10
|
Other partners' capital
|
|
|
|
3,021
|
|
|
|
1,929
|
Total partners' capital
|
|
|
|
3,024
|
|
|
|
1,939
|
TOTAL LIABILITIES AND PARTNERS' CAPITAL
|
|
|
$
|
8,171
|
|
|
$
|
6,495
|
|
|
|
|
|
|
|
Total Debt, net of cash and cash equivalents (1)
|
|
|
$
|
4,642
|
|
|
$
|
4,178
|
EBITDA (2) (3)
|
|
|
$
|
1,174
|
|
|
$
|
1,113
|
Debt to EBITDA
|
|
|
|
4.0
|
|
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
September 30, 2014
|
|
|
December 31, 2013
|
Net Income
|
|
|
$
|
593
|
|
|
$
|
610
|
Certain items
|
|
|
|
-
|
|
|
|
5
|
Depreciation and amortization (3)
|
|
|
|
280
|
|
|
|
198
|
Interest expense, net
|
|
|
|
301
|
|
|
|
300
|
EBITDA
|
|
|
$
|
1,174
|
|
|
$
|
1,113
|
|
|
|
|
|
|
|
|
|
Notes ($ millions):
|
(1)
|
|
Amounts reflect the gross debt balance before unamortized discount
of $8 for each of the periods presented.
|
(2)
|
|
Amounts represent the last twelve months and are before certain
items.
|
(3)
|
|
Includes add back of EPB's share of equity investees' DD&A, which
was approximately $52.7 and $0.7 for the twelve months ended
September 30, 2014, and December 31, 2013, respectively.
|