DOMINION ENERGY MIDSTREAM PARTNERS LP RICHMOND, Va., Oct. 30, 2017 /PRNewswire/ -- Dominion Energy Midstream Partners, LP (NYSE: DM) reported unaudited net income attributable to the partnership of $48.6 million for the three months ended Sept. 30, 2017, double third quarter 2016. Adjusted earnings before interest, income taxes, depreciation and amortization (Adjusted EBITDA) was $76.2 million, nearly three times third quarter 2016. Distributable cash flow was $45.8 million for the quarter, almost 90 percent higher than third quarter 2016. The distribution coverage ratio was 1.28 times at the end of the third quarter.
Dominion Energy Midstream uses Adjusted EBITDA and distributable cash flow as the primary performance measurements of its earnings and results for public communications with analysts and investors. Dominion Energy Midstream also uses Adjusted EBITDA and distributable cash flow internally for budgeting, reporting to the Board of Directors and other purposes. Management believes Adjusted EBITDA and distributable cash flow provide a more meaningful representation of the partnership's financial performance and liquidity. Schedules B and D of this press release include reconciliations to the most directly comparable GAAP measures.
QUARTERLY DISTRIBUTION
On Oct. 24, 2017, the Board of Directors declared a quarterly distribution of $0.3025 per common and subordinated unit, payable on Nov. 15, 2017, to such unitholders of record at the close of business Nov. 6, 2017. This distribution represents a 5 percent increase over last quarter and supports our 22 percent annual distribution growth rate plan.
CONFERENCE CALL TODAY
Dominion Energy Midstream and Dominion Energy will jointly host a third-quarter earnings conference call at 10 a.m. ET on Monday, Oct. 30, 2017. Management will discuss its third-quarter financial results and other matters of interest to the financial community.
Domestic callers should dial (877) 410-5657. International callers should dial (334) 323-9872. The passcode for the conference call is "Dominion." Participants should dial in 10 to 15 minutes prior to the scheduled start time. Members of the media also are invited to listen.
A live webcast of the conference call, including accompanying slides, will be available on the partnership's investor information page at www.dominionenergymidstream.com/investors.
A replay of the conference call will be available beginning about 1 p.m. ET Oct. 30, 2017 and lasting until 11 p.m. ET Nov. 6, 2017. Domestic callers may access the recording by dialing (877) 919-4059. International callers should dial (334) 323-0140. The PIN for the replay is 82859043. Additionally, a replay of the webcast will be available on the investor information pages by the end of the day Oct. 30, 2017.
ABOUT DOMINION ENERGY MIDSTREAM
Dominion Energy Midstream is a Delaware limited partnership formed by Dominion Energy, Inc., to grow a portfolio of natural gas terminaling, processing, storage, transportation and related assets. It is headquartered in Richmond, Va. For more information about Dominion Energy Midstream, visit its website at www.dominionenergymidstream.com.
Dominion Energy Midstream Partners, LP
Schedule A - Consolidated Statements of Income*
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(millions, except per unit data)
Operating Revenue $113.0 $95.2 $358.9 $263.8
----------------- ------ ----- ------ ------
Operating Expenses
Purchased gas 9.1 3.4 31.1 8.3
Other operations and
maintenance 33.2 24.9 102.4 61.0
Depreciation and
amortization 26.5 12.4 76.8 32.6
Other taxes 9.3 8.0 27.8 22.1
Total operating
expenses 78.1 48.7 238.1 124.0
--------------- ---- ---- ----- -----
Income from operations 34.9 46.5 120.8 139.8
Earnings from equity
method investees 6.2 4.9 19.4 15.0
Other income 1.7 0.8 4.3 2.2
Interest and related
charges 7.9 0.8 23.7 0.7
-------------------- --- --- ---- ---
Income from operations
including
noncontrolling
interest before income
taxes $34.9 $51.4 $120.8 $156.3
----------------------- ----- ----- ------ ------
Income tax expense - 1.2 - 1.2
------------------ --- --- --- ---
Net income including
noncontrolling
interest and
predecessors $34.9 $50.2 $120.8 $155.1
-------------------- ----- ----- ------ ------
Less: Net loss
attributable to
Dominion Energy
Questar Pipeline
Predecessor(1) - (3.2) - (3.2)
----------------- --- ---- --- ----
Net income including
noncontrolling
interest $34.9 $53.4 $120.8 $158.3
-------------------- ----- ----- ------ ------
Less: Net income (loss)
attributable to
noncontrolling
interest (13.7) 29.1 (22.0) 88.4
----------------------- ----- ---- ----- ----
Net income attributable
to partners $48.6 $24.3 $142.8 $69.9
----------------------- ----- ----- ------ -----
Net income attributable to partners' ownership
interest
Preferred unitholders'
interest in net income $9.5 $ - $28.5 $ -
General partner's
interest in net income 4.0 0.7 7.0 1.7
Common unitholders'
interest in net income 23.8 13.8 72.7 40.1
Subordinated
unitholder's interest
in net income 11.3 9.8 34.6 28.1
Net income per limited partner unit (basic)
Common units $0.35 $0.30 $1.08 $0.88
Subordinated units $0.35 $0.30 $1.08 $0.88
Net income per limited partner unit (diluted)
Common units $0.33 $0.30 $1.02 $0.88
Subordinated units $0.35 $0.30 $1.08 $0.88
------------------ ----- ----- ----- -----
1 Represents amounts for the
period from September 16, 2016
through September 30, 2016.
* The notes contained in Dominion
Energy Midstream's most recent
quarterly report on Form 10-Q or
annual report on Form 10-K are
an integral part of the
Consolidated Financial
Statements.
Dominion Energy Midstream Partners, LP
Schedule B - Reconciliation of EBITDA and Adjusted EBITDA to Net Income*
(Unaudited)
The following table presents a reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measure for each period.
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(millions)
Net income including
noncontrolling interest and
predecessors $34.9 $50.2 $120.8 $155.1
Add:
Depreciation and amortization 26.5 12.4 76.8 32.6
Interest and related charges 7.9 0.8 23.7 0.7
Income tax expense - 1.2 - 1.2
------------------ --- --- --- ---
EBITDA $69.3 $64.6 $221.3 $189.6
------ ----- ----- ------ ------
Distributions from equity method
investees 8.2 6.2 22.2 17.9
Less:
Earnings from equity method
investees 6.2 4.9 19.4 15.0
EBITDA attributable to Dominion
Energy Questar Pipeline
Predecessor(1) - 1.2 - 1.2
EBITDA attributable to
noncontrolling interest (4.9) 36.8 3.9 111.3
Adjusted EBITDA $76.2 $27.9 $220.2 $80.0
--------------- ----- ----- ------ -----
1 Represents amounts for the
period from September 16, 2016
through September 30, 2016.
* The notes contained in Dominion
Energy Midstream's most recent
quarterly report on Form 10-Q or
annual report on Form 10-K are
an integral part of the
Consolidated Financial
Statements.
Dominion Energy Midstream Partners, LP
Schedule C - Summary of Consolidated Statements of Cash Flows*
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(millions)
Cash flows from operating
activities:
Net income including
noncontrolling interest and
predecessors $34.9 $50.2 $120.8 $155.1
Adjustments to reconcile net
income including
noncontrolling interest and
predecessors to net cash
provided by operating
activities 37.0 48.0 126.1 73.5
---- ---- ----- ----
Net cash provided by operating
activities $71.9 $98.2 $246.9 $228.6
------------------------------ ----- ----- ------ ------
Net cash used in investing
activities $(190.6) $(305.4) $(727.7) $(959.6)
-------------------------- ------- ------- ------- -------
Net cash provided by financing
activities $127.0 $261.1 $520.0 $774.1
------------------------------ ------ ------ ------ ------
Cash and cash equivalents at
beginning of period 70.5 24.2 39.6 35.0
Cash and cash equivalents at
end of period $78.8 $78.1 $78.8 $78.1
---------------------------- ----- ----- ----- -----
* The notes contained in Dominion
Energy Midstream's most recent
quarterly report on Form 10-Q or
annual report on Form 10-K are
an integral part of the
Consolidated Financial
Statements.
Dominion Energy Midstream Partners, LP
Schedule D - Reconciliation of Distributable Cash Flow to Net Cash from Operating Activities*
(Unaudited)
The following table presents a reconciliation of distributable cash flow to the most directly comparable GAAP financial measure for each period.
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(millions)
Net cash provided by operating activities $71.9 $98.2 $246.9 $228.6
Less:
Cash attributable to (from) noncontrolling interest (1.7) 53.1 18.9 132.6
Cash attributable to Dominion Energy Questar Pipeline Predecessor(1) - 18.6 - 18.6
Other changes in working capital and noncash adjustments 2.6 1.4 (8.3) 2.6
Equity method investee distributions included in investing activities - - 0.5 -
--------------------------------------------------------------------- --- --- --- ---
Adjusted EBITDA 76.2 27.9 220.2 80.0
--------------- ---- ---- ----- ----
Adjustments to cash:
Less: Distributions to preferred unitholders (9.5) - (28.5) -
Plus (less): Deferred revenue (0.1) - (0.4) 2.0
Less: Amortization of regulatory liability (0.7) (0.7) (2.1) (2.1)
Less: Maintenance capital expenditures (12.8) (3.0) (38.7) (10.8)
Plus: Acquisition costs funded by Dominion Energy 1.7 0.3 5.9 0.4
Less: Interest expense and AFUDC equity (9.1) (0.5) (26.0) (1.5)
Plus: Non-cash director compensation 0.1 0.1 0.2 0.2
------------------------------------------------ --- --- --- ---
Distributable cash flow $45.8 $24.1 $130.6 $68.2
----------------------- ----- ----- ------ -----
1 Represents amounts for the period
from September 16, 2016 through
September 30, 2016.
* The notes contained in Dominion
Energy Midstream's most recent
quarterly report on Form 10-Q or
annual report on Form 10-K are an
integral part of the Consolidated
Financial Statements.
HOW WE EVALUATE OUR OPERATIONS
Subsequent to the acquisition of
Dominion Energy Questar Pipeline, we
define distributable cash flow as
Adjusted EBITDA less distributions
to preferred unitholders,
maintenance capital expenditures and
interest expense and adjusted for
known timing differences between
cash and income.
Dominion Energy Midstream Partners, LP
Schedule E - Selected Financial Data*
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
(millions, except ratio)
Adjusted EBITDA $76.2 $27.9 $220.2 $80.0
Adjustments to cash:
Less: Distributions
to preferred unitholders (9.5) - (28.5) -
Plus (less): Deferred revenue (0.1) - (0.4) 2.0
Less: Amortization of
regulatory liability (0.7) (0.7) (2.1) (2.1)
Less: Maintenance
capital expenditures (12.8) (3.0) (38.7) (10.8)
Plus: Acquisition
costs funded by Dominion
Energy 1.7 0.3 5.9 0.4
Less: Interest
expense and AFUDC equity (9.1) (0.5) (26.0) (1.5)
Plus: Non-cash
director compensation 0.1 0.1 0.2 0.2
------------------------ --- --- --- ---
Distributable cash flow $45.8 $24.1 $130.6 $68.2
----------------------- ----- ----- ------ -----
Distributions:
Incentive distribution rights 5.7 1.0 12.9 2.1
Common unitholders 20.3 11.3 58.1 32.3
Subordinated unitholder 9.7 7.9 27.7 22.6
Total distributions(1) $35.7 $20.2 $98.7 $57.0
--------------------- ----- ----- ----- -----
Coverage ratio 1.28x 1.19x 1.32x 1.20x
-------------- ----- ----- ----- -----
1 Distributions declared to common
units is based on units
outstanding at September 30, 2017
and 2016, and therefore excludes
distributions paid on units issued
to the public through November 6,
2017 and November 4, 2016,
respectively.
* The notes contained in Dominion
Energy Midstream's most recent
quarterly report on Form 10-Q or
annual report on Form 10-K are an
integral part of the Consolidated
Financial Statements.
See schedules B and D for
reconciliations of non-GAAP
measures.
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SOURCE Dominion Energy Midstream Partners
