RICHMOND, Va., Feb. 1, 2017 /PRNewswire/ -- Dominion Midstream
Partners, LP (NYSE: DM) reported unaudited net income attributable
to the partnership of $36.5 million
for the three months ended Dec. 31,
2016. Adjusted earnings before interest, income taxes,
depreciation and amortization (Adjusted EBITDA) was $45.8 million, and distributable cash flow was
$37.7 million for the quarter. On
Dec. 1, 2016, Dominion Midstream
successfully completed the acquisition of Questar Pipeline, LLC,
from Dominion Resources, Inc. (NYSE: D).
Dominion 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 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 Jan. 25, 2017, the Board of Directors declared a
quarterly distribution of $0.2605 per
common and subordinated unit, payable on Feb. 15, 2017, to such unitholders of record at
the close of business Feb. 6,
2017.
CONFERENCE CALL TODAY
Dominion Midstream and
Dominion Resources will jointly host a fourth-quarter earnings
conference call at 10 a.m. ET on
Wednesday, Feb. 1, 2017.
Management will discuss its fourth-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.dommidstream.com/investors.
A replay of the conference call will be available beginning
about 1 p.m. ET Feb. 1, 2017 and lasting until 11 p.m. ET Feb. 8,
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 61568881.
Additionally, a replay of the webcast will be available on the
investor information pages by the end of the day Feb. 1, 2017.
ABOUT DOMINION MIDSTREAM
Dominion Midstream is
a Delaware limited partnership
formed by Dominion Resources, 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 Midstream, visit its website at www.dommidstream.com.
Dominion Midstream
Partners, LP
|
Schedule A-
Consolidated Statements of Income*
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
(millions, except per
unit data)
|
|
|
|
|
|
|
|
Operating
Revenue
|
$
177.5
|
|
$
82.7
|
|
$
441.3
|
|
$
369.6
|
Operating
Expenses
|
|
|
|
|
|
|
|
Purchased
gas
|
33.4
|
|
1.8
|
|
41.7
|
|
54.6
|
Other operations and
maintenance
|
34.3
|
|
13.6
|
|
95.3
|
|
56.7
|
Depreciation and
amortization
|
24.0
|
|
10.0
|
|
56.6
|
|
40.4
|
Other
taxes
|
8.5
|
|
6.3
|
|
30.6
|
|
26.3
|
Total operating
expenses
|
100.2
|
|
31.7
|
|
224.2
|
|
178.0
|
Income from
operations
|
77.3
|
|
51.0
|
|
217.1
|
|
191.6
|
Earnings from equity
method investees
|
8.0
|
|
6.6
|
|
23.0
|
|
6.6
|
Other
income
|
1.0
|
|
0.4
|
|
3.2
|
|
1.0
|
Interest and related
charges
|
6.6
|
|
0.3
|
|
7.3
|
|
0.6
|
Income from
operations including noncontrolling interest before income
taxes
|
79.7
|
|
57.7
|
|
236.0
|
|
198.6
|
Income tax
expense
|
5.1
|
|
-
|
|
6.3
|
|
2.1
|
Net income
including noncontrolling interest and predecessors
|
$
74.6
|
|
$
57.7
|
|
$
229.7
|
|
$
196.5
|
Less: Net income
attributable to DCG Predecessor1
|
-
|
|
-
|
|
-
|
|
2.3
|
Less: Net income
attributable to Questar Pipeline Predecessor2
|
8.7
|
|
-
|
|
5.5
|
|
-
|
Net income
including noncontrolling interest
|
65.9
|
|
57.7
|
|
224.2
|
|
194.2
|
Less: Net income
attributable to noncontrolling interest
|
29.4
|
|
32.6
|
|
117.8
|
|
121.7
|
Net income
attributable to partners
|
$
36.5
|
|
$
25.1
|
|
$
106.4
|
|
$
72.5
|
|
|
|
|
|
|
|
|
Net income
attributable to partners' ownership interest
|
|
|
|
|
|
|
|
Preferred
unitholders' interest in net income
|
$
3.2
|
|
$
-
|
|
$
3.2
|
|
$
-
|
General
partner's interest in net income
|
0.6
|
|
0.2
|
|
2.3
|
|
(0.5)
|
Common
unitholders' interest in net income
|
23.8
|
|
14.6
|
|
63.9
|
|
41.3
|
Subordinated
unitholder's interest in net income
|
8.9
|
|
10.3
|
|
37.0
|
|
31.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
limited partner unit (basic and diluted)
|
|
|
|
|
|
|
|
Common
Units
|
$
0.38
|
|
$
0.32
|
|
$
1.30
|
|
$
1.08
|
Subordinated
Units
|
$
0.34
|
|
$
0.32
|
|
$
1.17
|
|
$
1.00
|
|
|
|
|
|
|
|
|
1Represents amounts for the period from
January 31, 2015 through March 31, 2015.
|
2Represents amounts for the period from
September 16, 2016 through November 30, 2016.
|
|
|
|
|
|
|
|
|
* The notes contained
in Dominion 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 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
|
|
Year
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
(millions)
|
|
|
|
|
|
|
|
|
|
|
Net income
including noncontrolling interest and predecessors
|
|
|
|
$
74.6
|
|
$
57.7
|
|
$
229.7
|
|
$
196.5
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
24.0
|
|
10.0
|
|
56.6
|
|
40.4
|
Interest
and related charges
|
|
|
|
6.6
|
|
0.3
|
|
7.3
|
|
0.6
|
Income
tax expense
|
|
|
|
5.1
|
|
-
|
|
6.3
|
|
2.1
|
EBITDA
|
|
|
|
$
110.3
|
|
$
68.0
|
|
$
299.9
|
|
$
239.6
|
Distributions from
equity method investees
|
|
|
|
7.2
|
|
2.6
|
|
25.1
|
|
2.6
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Earnings
from equity method investees
|
|
|
|
8.0
|
|
6.6
|
|
23.0
|
|
6.6
|
EBITDA
attributable to DCG Predecessor1
|
|
|
|
-
|
|
-
|
|
-
|
|
5.7
|
EBITDA
attributable to Questar Pipeline Predecessor2
|
|
|
|
26.8
|
|
-
|
|
28.0
|
|
-
|
EBITDA
attributable to noncontrolling interest
|
|
|
|
36.9
|
|
40.4
|
|
148.2
|
|
154.3
|
Adjusted
EBITDA
|
|
|
|
$
45.8
|
|
$
23.6
|
|
$
125.8
|
|
$
75.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Represents amounts for the period from
January 31, 2015 through March 31, 2015.
|
|
2Represents amounts for the period from
September 16, 2016 through November 30, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
* The notes contained
in Dominion 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 Midstream
Partners, LP
|
Schedule C-
Summary of Consolidated Statements of Cash Flows*
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
(millions)
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income including
noncontrolling interest and predecessors
|
|
$
74.6
|
|
$
57.7
|
|
$229.7
|
|
$196.5
|
Adjustments to
reconcile net income including noncontrolling interest
and predecessors to net cash
provided by operating activities
|
|
|
|
|
|
|
|
|
|
(14.6)
|
|
(9.8)
|
|
58.9
|
|
47.0
|
Net cash provided
by operating activities
|
|
$
60.0
|
|
$
47.9
|
|
$288.6
|
|
$243.5
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
$
(1,163.2)
|
|
$
(432.3)
|
|
$(2,122.8)
|
|
$
(1,282.7)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Net cash provided
by financing activities
|
|
$
1,064.7
|
|
$
312.4
|
|
$1,838.8
|
|
$898.8
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
78.1
|
|
107.0
|
|
35.0
|
|
175.4
|
Cash and cash
equivalents at end of period
|
|
$
39.6
|
|
$
35.0
|
|
$
39.6
|
|
$
35.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The notes contained
in Dominion 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 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
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
(millions)
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
$
60.0
|
|
$
47.9
|
|
$
288.6
|
|
$
243.5
|
Less:
|
|
|
|
|
|
|
|
|
Cash
attributable to noncontrolling interest
|
|
17.9
|
|
25.5
|
|
150.5
|
|
154.4
|
Cash
attributable to DCG Predecessor1
|
|
-
|
|
-
|
|
-
|
|
10.4
|
Cash
attributable to Questar Pipeline Predecessor2
|
|
1.1
|
|
-
|
|
19.7
|
|
-
|
Other changes in
working capital and noncash adjustments
|
|
4.8
|
|
1.2
|
|
7.4
|
|
(3.1)
|
Adjusted
EBITDA
|
|
$
45.8
|
|
$
23.6
|
|
$
125.8
|
|
$
75.6
|
Adjustments to
cash3:
|
|
|
|
|
|
|
|
|
Less:
Distributions to preferred unitholders
|
|
$
(3.2)
|
|
$
-
|
|
$
(3.2)
|
|
$
-
|
Plus:
Deferred revenue
|
|
3.0
|
|
4.0
|
|
5.0
|
|
8.0
|
Less:
Amortization of regulatory liability
|
|
(0.7)
|
|
(0.7)
|
|
(2.8)
|
|
(2.1)
|
Less: Maintenance capital expenditures
|
|
(5.2)
|
|
(3.4)
|
|
(16.0)
|
|
(9.4)
|
Plus: Acquisition costs funded by Dominion
|
|
1.2
|
|
-
|
|
1.6
|
|
0.7
|
Less: Interest expense and AFUDC equity
|
|
(3.3)
|
|
(0.5)
|
|
(4.8)
|
|
(1.4)
|
Plus: Non-cash director compensation
|
|
0.1
|
|
0.1
|
|
0.3
|
|
0.2
|
Distributable cash
flow
|
|
$
37.7
|
|
$
23.1
|
|
$
105.9
|
|
$
71.6
|
|
|
|
|
|
|
|
|
|
1Represents amounts for the period from
January 31, 2015 through March 31, 2015.
|
2Represents amounts for the period from
September 16, 2016 through November 30, 2016.
|
3Beginning
in the first quarter of 2016, distributable cash flow no longer
reflects an adjustment for the timing difference between cash paid
for property taxes and the amount recognized into expense. All
prior periods presented have been recalculated to reflect a
consistent approach. Previously, distributable cash flow for
the three and twelve months ended December 31, 2015 was $24.7
million and $75.7 million, respectively.
|
|
|
|
|
|
|
|
|
|
* The notes contained
in Dominion 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
Questar Pipeline Acquisition, 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 Midstream
Partners, LP
|
Schedule E-
Selected Financial Data*
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
45.8
|
|
$
23.6
|
|
$
125.8
|
|
$
75.6
|
Adjustments to
cash1:
|
|
|
|
|
|
|
|
|
Less:
Distributions to preferred unitholders
|
|
(3.2)
|
|
-
|
|
(3.2)
|
|
-
|
Plus:
Deferred revenue
|
|
3.0
|
|
4.0
|
|
5.0
|
|
8.0
|
Less:
Amortization of regulatory liability
|
|
(0.7)
|
|
(0.7)
|
|
(2.8)
|
|
(2.1)
|
Less: Maintenance capital expenditures
|
|
(5.2)
|
|
(3.4)
|
|
(16.0)
|
|
(9.4)
|
Plus: Acquisition costs funded by Dominion
|
|
1.2
|
|
-
|
|
1.6
|
|
0.7
|
Less: Interest expense and AFUDC equity
|
|
(3.3)
|
|
(0.5)
|
|
(4.8)
|
|
(1.4)
|
Plus: Non-cash director compensation
|
|
0.1
|
|
0.1
|
|
0.3
|
|
0.2
|
Distributable Cash
Flow
|
|
$
37.7
|
|
$
23.1
|
|
$
105.9
|
|
$
71.6
|
|
|
|
|
|
|
|
|
|
Distributions:
|
|
|
|
|
|
|
|
|
Incentive distribution rights
|
|
$
1.7
|
|
$
0.2
|
|
$
3.9
|
|
$
0.2
|
Common
unitholders
|
|
17.5
|
|
9.8
|
|
53.8
|
|
32.3
|
Subordinated unitholder
|
|
8.3
|
|
6.8
|
|
30.9
|
|
24.8
|
Total
distributions
|
|
$
27.5
|
|
$
16.8
|
|
$
88.6
|
|
$
57.3
|
|
|
|
|
|
|
|
|
|
Coverage
Ratio
|
|
1.37x
|
|
1.38x
|
|
1.20x
|
|
1.25x
|
1Beginning
in the first quarter of 2016, distributable cash flow no longer
reflects an adjustment for the timing difference between cash paid
for property taxes and the amount recognized into expense. All
prior periods presented have been recalculated to reflect a
consistent approach. Previously, distributable cash flow for
the three and twelve months ended December 31, 2015 was $24.7
million and $75.7 million, respectively.
|
|
|
|
|
|
|
|
|
|
* The notes contained
in Dominion 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.
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dominion-midstream-partners-announces-fourth-quarter-2016-earnings-300399949.html
SOURCE Dominion Midstream Partners