HOUSTON, May 3, 2016 /PRNewswire/ -- Columbia
Pipeline Group, Inc. (NYSE: CPGX) ("CPG") reported net operating
earnings from continuing operations - controlling interest
(non-GAAP) of $91.3 million for the
three months ended March 31, 2016,
compared with $90.0 million for the
prior-year period.
Operating earnings (non-GAAP) for the first quarter were
$180.2 million compared with
$162.7 million for the prior-year
period. For the first quarter, Adjusted EBITDA (non-GAAP) was
$223.8 million compared with
$198.1 million for the prior-year
period. Additionally, Distributable Cash Flow (non-GAAP) was
$161.4 million for the first quarter
compared with $150.4 million for the
prior-year period. Please refer to Schedules 1 and 2 in the
financial tables below for a reconciliation of non-GAAP financial
measures to the most directly comparable GAAP financial
measures.
On a GAAP basis, CPG reported income from continuing operations
- controlling interest for the three months ended March 31, 2016 of $72.0
million compared with $90.0
million for the prior-year period. Operating income for the
first quarter was $151.7 million
compared with $162.7 million for the
prior-year period.
As previously announced, on March 17,
2016, CPG entered into an agreement and plan of merger to be
acquired by a subsidiary of TransCanada Corporation (NYSE: TRP)
("TransCanada"). The acquisition is expected to close in the
second half of 2016.
"This quarter's performance was strong by any measure," said CPG
Chairman and Chief Executive Officer Robert C. Skaggs, Jr. "The CPG Team
continues to maintain its singular focus on the execution of our
business plan and on meeting all of our stakeholder
commitments."
Skaggs also noted that CPG's growth and modernization
investments continue to progress according to plan. Notable
developments in the first quarter included (i) the approval by the
Federal Energy Regulatory Commission (the "FERC") of a customer
settlement to extend and expand Columbia Gas Transmission's
modernization program for an additional three years through 2020;
and (ii) CPG's filing of certificate applications with the FERC for
its Mountaineer XPress and Gulf XPress projects. The projects
involve a combined investment of $2.7
billion and are targeted to be placed in service during the
fourth quarter of 2018.
Three Months Ended March 31,
2016 Operating Results
A comparison of operating results for the three months ended
March 31, 2016 to the three months
ended March 31, 2015 is summarized
below.
Operating revenues, excluding the impact of trackers, increased
by $34.6 million, primarily due to
higher demand margin revenue from growth projects placed into
service, partially offset by a decrease in mineral rights royalty
revenue.
Operating expenses, excluding the impact of trackers, increased
by $17.6 million, primarily due to
higher depreciation and amortization, increased employee and
administrative costs, higher outside service costs, increased
property and other taxes and decreased gains on the conveyances of
mineral interests. These variances were partially offset by
decreased maintenance expenses.
Equity earnings increased by $0.5
million.
Other income (deductions) for the three months ended
March 31, 2016 reduced income by
$22.4 million compared with a
reduction in income of $13.7 million
in the same period in 2015. The variance was primarily due to an
increase in interest expense resulting from the issuance of
long-term debt in May 2015, partially
offset by Allowance for Funds Used During Construction.
The effective tax rate of net operating earnings was 32.9%
compared with 34.8% for the same period in 2015. The 1.9% decrease
is primarily due to a full quarter of Columbia Pipeline Partners LP
("CPPL") earnings for which the noncontrolling public limited
partners are directly responsible for the related income taxes.
Non-GAAP Financial Measures
Net Operating Earnings, Adjusted EBITDA and Distributable Cash
Flow
We define Net Operating Earnings as net income adjusted for
transactions that are considered unusual, infrequent or not
representative of underlying trends. Examples of these transactions
include impairments, costs associated with CPG's separation from
NiSource Inc. (the "separation") and costs associated with CPG's
proposed merger with TransCanada (the "proposed merger"). We define
Adjusted EBITDA as net income before interest expense, income
taxes, and depreciation and amortization, plus distributions of
earnings received from equity investees, less equity earnings in
unconsolidated affiliates and other, net. In addition, to the
extent transactions occur that are considered unusual, infrequent
or not representative of underlying trends, we will remove the
effect of these items from Adjusted EBITDA. Examples of these
transactions include impairments, costs associated with the
separation and costs associated with the proposed merger. We define
Distributable Cash Flow as Adjusted EBITDA less interest expense,
maintenance capital expenditures, gain on sale of assets, net cash
paid for taxes and distributions to public unitholders plus
proceeds from sale of assets, interest income, capital costs
related to the separation and any other known differences between
cash and income.
Net Operating Earnings, Adjusted EBITDA and Distributable Cash
Flow are non-GAAP supplemental financial measures that management
and external users of our financial statements, such as industry
analysts, investors, lenders and rating agencies, may use to assess
the viability of acquisitions and other capital expenditure
projects and the returns on investment of various investment
opportunities.
We believe that the presentations of Net Operating Earnings,
Adjusted EBITDA and Distributable Cash Flow will provide useful
information to investors in assessing our financial condition and
results of operations. The GAAP measure most directly comparable to
Net Operating Earnings is Net Income. The GAAP measures most
directly comparable to Adjusted EBITDA and Distributable Cash Flow
are Net Income and Net Cash Flows from Operating Activities. Our
non-GAAP financial measures of Net Operating Earnings, Adjusted
EBITDA and Distributable Cash Flow should not be considered as an
alternative to GAAP net income or net cash flows from operating
activities. Net Operating Earnings, Adjusted EBITDA and
Distributable Cash Flow have important limitations as analytical
tools because they exclude some but not all items that affect net
income and net cash flows from operating activities. You should not
consider Net Operating Earnings, Adjusted EBITDA or Distributable
Cash Flow in isolation or as a substitute for analysis of our
results as reported under GAAP. Because Net Operating Earnings,
Adjusted EBITDA or Distributable Cash Flow may be defined
differently by other companies in our industry, our definitions of
Net Operating Earnings, Adjusted EBITDA or Distributable Cash Flow
may not be comparable to similarly titled measures of other
companies, thereby diminishing their utility.
About Columbia Pipeline Group, Inc.
Columbia Pipeline Group, Inc. operates approximately 15,000
miles of strategically located interstate pipeline, gathering and
processing assets extending from New
York to the Gulf of Mexico,
including an extensive footprint in the Marcellus and Utica shale
production areas. Columbia Pipeline Group, Inc. also operates
one of the nation's largest underground natural gas storage
systems. Columbia Pipeline Group, Inc. is listed on the NYSE under
the ticker symbol CPGX. Additional information can be found at
www.cpg.com.
Forward-Looking Statements
Certain statements in this release may constitute
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended (the "Exchange
Act") and the Private Securities Litigation Reform Act of 1995
concerning CPG and the proposed merger with TransCanada.
Forward-looking statements are statements other than historical
facts and that frequently use words such as "anticipate,"
"believe," "continue," "could," "estimate," "expect," "forecast,"
"intend," "may," "plan," "position," "should," "strategy,"
"target," "will" and similar words. All such forward-looking
statements speak only as of the date of this release. Although CPG
believes that the plans, intentions and expectations reflected in
or suggested by the forward-looking statements are reasonable,
there is no assurance that these plans, intentions or expectations
will be achieved and such statements are subject to various risks
and uncertainties. Therefore, actual outcomes and results could
materially differ from what is expressed, implied or forecasted in
such statements and readers are cautioned not to place undue
reliance on such statements. CPG's business may be influenced by
many factors that are difficult to predict, involve uncertainties
that may materially affect actual results and are often beyond
CPG's control. These factors include, but are not limited to, the
occurrence of any event, change or other circumstance that could
give rise to termination of the merger agreement with TransCanada;
the inability to complete the proposed merger due to the failure to
obtain stockholder approval for the proposed merger or the failure
to satisfy other conditions to completion of the proposed merger,
including that a governmental entity may prohibit, delay or refuse
to grant approval for the consummation of the merger; risks related
to disruption of management's attention from CPG's ongoing business
operations due to the pending merger; the impact of the
announcement of the proposed merger on relationships with third
parties, including commercial counterparties, employees and
competitors, and risks associated with the loss and ongoing
replacement of key personnel; risks relating to unanticipated costs
of integration in connection with the proposed merger, including
operating costs, customer loss or business disruption being greater
than expected; changes in general economic conditions; competitive
conditions in our industry; actions taken by third-party operators,
processors and transporters; the demand for natural gas storage and
transportation services; our ability to successfully implement our
business plan; our ability to complete internal growth projects on
time and on budget; the price and availability of debt and equity
financing; the availability and price of natural gas to the
consumer compared with the price of alternative and competing
fuels; competition from the same and alternative energy sources;
energy efficiency and technology trends; operating hazards and
other risks incidental to transporting, storing and gathering
natural gas; natural disasters, weather-related delays, casualty
losses, acts of war and terrorism and other matters beyond our
control; interest rates; labor relations; large customer defaults;
changes in the availability and cost of capital; changes in tax
status; the effects of existing and future laws and governmental
regulations; and the effects of future litigation, including
litigation relating to the proposed merger with TransCanada. We
caution that the foregoing list of factors is not exhaustive.
Additional information about these and other factors can be found
in CPG's Annual Report on Form 10-K filed with the U.S.
Securities and Exchange Commission (the "SEC") for the fiscal year
ended December 31, 2015, as amended, and CPG's other filings
with the SEC, which are available at http://www.sec.gov. All
forward-looking statements included in this press release are
expressly qualified in their entirety by such cautionary
statements. CPG expressly disclaims any obligation to update, amend
or clarify any forward-looking statement to reflect events, new
information or circumstances occurring after the date of this
release except as required by applicable law.
Additional Information and Where to Find It
This release may be deemed to be solicitation material in
respect of the proposed acquisition of CPG by TransCanada. In
connection with the proposed merger transaction, CPG filed a
preliminary proxy statement with the SEC on April 8, 2016, and intends to file other relevant
documents with the SEC, including a proxy statement in definitive
form (which CPG expects to commence disseminating to stockholders
on or about May 18, 2016). BEFORE
MAKING ANY VOTING DECISION, CPG'S STOCKHOLDERS ARE URGED TO READ
THE DEFINITIVE PROXY STATEMENT AND ANY OTHER DOCUMENTS TO BE FILED
WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED
BY REFERENCE IN THE PROXY STATEMENT WHEN THEY BECOME AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
MERGER.
Investors and security holders will be able to obtain, free of
charge, a copy of the definitive proxy statement (when available)
and other relevant documents filed with the SEC from the SEC's
website at http://www.sec.gov. In addition, the proxy statement and
CPG's annual reports on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K and amendments to
those reports filed or furnished pursuant to section 13(a) or
15(d) of the Exchange Act will be available free of charge through
CPG's website at https://www.cpg.com/ as soon as reasonably
practicable after they are electronically filed with, or furnished
to, the SEC.
Participants in Solicitation
CPG and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from the holders of CPG
common stock in respect of the proposed merger. Information about
the directors and executive officers of CPG can be found in CPG's
Annual Report on Form 10-K for the fiscal year ended
December 31, 2015, filed with the SEC on February 18, 2016, as amended by Amendment No. 1
thereto on Form 10-K/A, filed with the SEC on April 7, 2016.
Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect
interests in the merger, which may be different than those of CPG's
stockholders generally, will be contained in the proxy statement
and other relevant materials that will be filed with the SEC in
connection with the proposed merger when they become available.
Columbia Pipeline
Group, Inc.
|
Consolidated Net
Operating Earnings (Non-GAAP)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March 31,
|
|
(in millions,
except per share amounts)
|
|
|
|
|
2016
|
|
2015
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
Transportation
revenues
|
|
|
|
|
$ 275.2
|
|
$ 207.5
|
|
Transportation
revenues-affiliated
|
|
|
|
|
-
|
|
26.6
|
|
Transportation
revenues-trackers
|
|
|
|
|
33.3
|
|
43.3
|
|
Storage
revenues
|
|
|
|
|
49.7
|
|
36.4
|
|
Storage
revenues-affiliated
|
|
|
|
|
-
|
|
13.2
|
|
Storage
revenues-trackers
|
|
|
|
|
0.2
|
|
0.3
|
|
Other
revenues
|
|
|
|
|
6.1
|
|
12.7
|
|
Total Operating
Revenues
|
|
|
|
|
364.5
|
|
340.0
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Operation and
maintenance
|
|
|
|
|
107.1
|
|
74.8
|
|
Operation and
maintenance-affiliated
|
|
|
|
|
-
|
|
28.0
|
|
Operation and
maintenance-trackers
|
|
|
|
|
33.5
|
|
43.6
|
|
Depreciation and
amortization
|
|
|
|
|
40.4
|
|
32.5
|
|
Gain on sale of
assets
|
|
|
|
|
(2.6)
|
|
(5.3)
|
|
Property and other
taxes
|
|
|
|
|
21.8
|
|
19.1
|
|
Total Operating
Expenses
|
|
|
|
|
200.2
|
|
192.7
|
|
Equity Earnings in
Unconsolidated Affiliates
|
|
|
|
|
15.9
|
|
15.4
|
|
Operating
Earnings
|
|
|
|
|
180.2
|
|
162.7
|
|
Other Income
(Deductions)
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
(29.4)
|
|
-
|
|
Interest
expense-affiliated
|
|
|
|
|
-
|
|
(18.3)
|
|
Other, net
|
|
|
|
|
7.0
|
|
4.6
|
|
Total Other
Deductions, net
|
|
|
|
|
(22.4)
|
|
(13.7)
|
|
Operating Earnings
from Continuing Operations before Income Taxes
|
|
|
|
|
157.8
|
|
149.0
|
|
Income
Taxes
|
|
|
|
|
51.9
|
|
51.9
|
|
Net Operating
Earnings from Continuing Operations
|
|
|
|
|
105.9
|
|
97.1
|
|
Less: Net
Operating Earnings from Continuing Operations - Noncontrolling
Interest
|
|
14.6
|
|
7.1
|
|
Net Operating
Earnings from Continuing Operations - Controlling
Interest
|
|
|
|
91.3
|
|
90.0
|
|
GAAP
Adjustment
|
|
|
|
|
(19.3)
|
|
-
|
|
GAAP Income from
Continuing Operations - Controlling Interest
|
|
|
|
|
$ 72.0
|
|
$ 90.0
|
|
Basic Net
Operating Earnings Per Share from Continuing
Operations
|
|
|
|
|
$ 0.23
|
|
$ 0.28
|
|
GAAP Basic
Earnings Per Share from Continuing Operations
|
|
|
|
|
$ 0.18
|
|
$ 0.28
|
|
Basic Average
Common Shares Outstanding
|
|
|
|
|
400.3
|
|
317.6
|
|
Throughput
(MMDth)
|
|
|
|
|
|
|
|
|
Columbia Gas
Transmission
|
|
|
|
|
544.4
|
|
497.3
|
|
Columbia
Gulf
|
|
|
|
|
153.0
|
|
145.7
|
|
Crossroads
|
|
|
|
|
4.6
|
|
5.1
|
|
Total
|
|
|
|
|
702.0
|
|
648.1
|
|
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
Schedule 1 -
Reconciliation of Net Operating Earnings to GAAP
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March 31,
|
|
(in
millions)
|
|
|
|
|
2016
|
|
2015
|
|
Net Operating
Earnings from Continuing Operations - Controlling
Interest
|
|
|
|
$ 91.3
|
|
$ 90.0
|
|
Items excluded
from operating earnings
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Separation
costs
|
|
|
|
|
(17.6)
|
|
-
|
|
Merger
costs
|
|
|
|
|
(10.9)
|
|
-
|
|
Total items excluded
from operating earnings
|
|
|
|
|
(28.5)
|
|
-
|
|
Other
Deductions:
|
|
|
|
|
|
|
|
|
Income taxes -
discrete items
|
|
|
|
|
(1.2)
|
|
-
|
|
Tax effect of above
items
|
|
|
|
|
10.4
|
|
-
|
|
Total items excluded
from net operating earnings
|
|
|
|
|
(19.3)
|
|
-
|
|
GAAP Income from
Continuing Operations - Controlling Interest
|
|
|
|
|
$ 72.0
|
|
$ 90.0
|
|
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
Schedule 2 - Non-GAAP
Reconciliation of Adjusted EBITDA and Distributable Cash
Flow
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March 31,
|
|
(in
millions)
|
|
|
|
|
2016
|
|
2015
|
|
Net
Income
|
|
|
|
|
$ 86.8
|
|
$ 97.1
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
29.4
|
|
-
|
|
Interest
expense-affiliated
|
|
|
|
|
-
|
|
18.3
|
|
Income
taxes
|
|
|
|
|
42.7
|
|
51.9
|
|
Depreciation and
amortization
|
|
|
|
|
40.4
|
|
32.5
|
|
Separation
costs
|
|
|
|
|
17.6
|
|
-
|
|
Merger
costs
|
|
|
|
|
10.9
|
|
-
|
|
Distributions of
earnings received from equity investees
|
|
|
|
|
18.9
|
|
18.3
|
|
Less:
|
|
|
|
|
|
|
|
|
Equity earnings in
unconsolidated affiliates
|
|
|
|
|
15.9
|
|
15.4
|
|
Other, net
|
|
|
|
|
7.0
|
|
4.6
|
|
Adjusted
EBITDA
|
|
|
|
|
$ 223.8
|
|
$ 198.1
|
|
Less:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
18.4
|
|
9.7
|
|
Adjusted EBITDA
attributable to CPG
|
|
|
|
|
$ 205.4
|
|
$ 188.4
|
|
Net Cash Flows
from Operating Activities
|
|
|
|
|
$ 170.3
|
|
$ 163.8
|
|
Interest
expense
|
|
|
|
|
29.4
|
|
-
|
|
Interest
expense-affiliated
|
|
|
|
|
-
|
|
18.3
|
|
Current
taxes
|
|
|
|
|
2.1
|
|
15.8
|
|
Gain on sale of
assets
|
|
|
|
|
2.6
|
|
5.3
|
|
Other adjustments to
operating cash flows
|
|
|
|
|
22.4
|
|
(8.5)
|
|
Changes in assets and
liabilities
|
|
|
|
|
(3.0)
|
|
3.4
|
|
Adjusted
EBITDA
|
|
|
|
|
$ 223.8
|
|
$ 198.1
|
|
Less:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
18.4
|
|
9.7
|
|
Adjusted EBITDA
attributable to CPG
|
|
|
|
|
$ 205.4
|
|
$ 188.4
|
|
Adjusted
EBITDA
|
|
|
|
|
$ 223.8
|
|
$ 198.1
|
|
Less:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
29.4
|
|
18.3
|
|
Maintenance capital
expenditures
|
|
|
|
|
19.5
|
|
18.5
|
|
Separation
maintenance capital expenditures
|
|
|
|
|
3.4
|
|
2.1
|
|
Gain on sale of
assets
|
|
|
|
|
2.6
|
|
5.3
|
|
Net cash paid for
taxes
|
|
|
|
|
2.1
|
|
15.8
|
|
Distributions to
public unitholders
|
|
|
|
|
9.7
|
|
-
|
|
Add:
|
|
|
|
|
|
|
|
|
Proceeds from sales
of assets
|
|
|
|
|
-
|
|
10.2
|
|
Interest
income
|
|
|
|
|
0.9
|
|
-
|
|
Capital costs related
to Separation
|
|
|
|
|
3.4
|
|
2.1
|
|
Distributable Cash
Flow
|
|
|
|
|
$ 161.4
|
|
$ 150.4
|
|
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
|
Statements of
Consolidated Operations (GAAP)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March 31,
|
|
(in millions,
except per share amounts)
|
|
|
|
2016
|
|
2015
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
Transportation
revenues
|
|
|
|
$ 308.5
|
|
$ 248.4
|
|
Transportation
revenues-affiliated
|
|
|
|
-
|
|
29.0
|
|
Storage
revenues
|
|
|
|
49.9
|
|
36.6
|
|
Storage
revenues-affiliated
|
|
|
|
-
|
|
13.3
|
|
Other
revenues
|
|
|
|
6.1
|
|
12.7
|
|
Total Operating
Revenues
|
|
|
|
364.5
|
|
340.0
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Operation and
maintenance
|
|
|
|
169.1
|
|
118.4
|
|
Operation and
maintenance-affiliated
|
|
|
|
-
|
|
28.0
|
|
Depreciation and
amortization
|
|
|
|
40.4
|
|
32.5
|
|
Gain on sale of
assets
|
|
|
|
(2.6)
|
|
(5.3)
|
|
Property and other
taxes
|
|
|
|
21.8
|
|
19.1
|
|
Total Operating
Expenses
|
|
|
|
228.7
|
|
192.7
|
|
Equity Earnings in
Unconsolidated Affiliates
|
|
|
|
15.9
|
|
15.4
|
|
Operating
Income
|
|
|
|
151.7
|
|
162.7
|
|
Other Income
(Deductions)
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
(29.4)
|
|
-
|
|
Interest
expense-affiliated
|
|
|
|
-
|
|
(18.3)
|
|
Other, net
|
|
|
|
7.0
|
|
4.6
|
|
Total Other
Deductions, net
|
|
|
|
(22.4)
|
|
(13.7)
|
|
Income from
Continuing Operations before Income Taxes
|
|
|
|
129.3
|
|
149.0
|
|
Income
Taxes
|
|
|
|
42.7
|
|
51.9
|
|
Income from
Continuing Operations
|
|
|
|
86.6
|
|
97.1
|
|
Income from
Discontinued Operations-net of taxes
|
|
|
|
0.2
|
|
-
|
|
Net
Income
|
|
|
|
86.8
|
|
97.1
|
|
Less: Net income
attributable to noncontrolling interest
|
14.6
|
|
7.1
|
|
Net income
attributable to CPG
|
|
|
|
$ 72.2
|
|
$ 90.0
|
|
Amounts
attributable to CPG:
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
|
$ 72.0
|
|
$ 90.0
|
|
Income from
discontinued operations-net of taxes
|
|
|
|
0.2
|
|
-
|
|
Net income
attributable to CPG
|
|
|
|
$ 72.2
|
|
$ 90.0
|
|
Basic Earnings Per
Share
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
|
|
$ 0.18
|
|
$ 0.28
|
|
Discontinued
Operations
|
|
|
|
-
|
|
-
|
|
Basic Earnings Per
Share
|
|
|
|
$ 0.18
|
|
$ 0.28
|
|
Diluted Earnings
Per Share
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
|
|
$ 0.18
|
|
$ 0.28
|
|
Discontinued
Operations
|
|
|
|
-
|
|
-
|
|
Diluted Earnings
Per Share
|
|
|
|
$ 0.18
|
|
$ 0.28
|
|
Basic Average
Common Shares Outstanding
|
|
|
|
400.3
|
|
317.6
|
|
Diluted Average
Common Shares
|
|
|
|
400.7
|
|
317.6
|
|
Dividends Declared
Per Common Share
|
|
|
|
$ 0.26
|
|
$ -
|
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
Consolidated Balance
Sheets (GAAP)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
(in
millions)
|
|
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
640.9
|
|
$
930.9
|
Accounts receivable
(less reserve of $0.3 and $0.6, respectively)
|
|
|
|
|
161.5
|
|
152.4
|
Materials and
supplies, at average cost
|
|
|
|
|
33.2
|
|
32.8
|
Exchange gas
receivable
|
|
|
|
|
12.0
|
|
19.0
|
Deferred property
taxes
|
|
|
|
|
54.2
|
|
52.0
|
Prepayments and
other
|
|
|
|
|
46.5
|
|
48.5
|
Total Current
Assets
|
|
|
|
|
948.3
|
|
1,235.6
|
Investments
|
|
|
|
|
|
|
|
Unconsolidated
affiliates
|
|
|
|
|
437.3
|
|
438.1
|
Other
investments
|
|
|
|
|
13.8
|
|
13.8
|
Total
Investments
|
|
|
|
|
451.1
|
|
451.9
|
Property, Plant
and Equipment
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
|
9,426.0
|
|
9,052.3
|
Accumulated
depreciation and amortization
|
|
|
|
|
(3,025.1)
|
|
(2,988.6)
|
Net Property, Plant
and Equipment
|
|
|
|
|
6,400.9
|
|
6,063.7
|
Other Noncurrent
Assets
|
|
|
|
|
|
|
|
Regulatory
assets
|
|
|
|
|
182.2
|
|
177.7
|
Goodwill
|
|
|
|
|
1,975.5
|
|
1,975.5
|
Postretirement and
postemployment benefits assets
|
|
|
|
|
117.7
|
|
115.7
|
Deferred charges and
others
|
|
|
|
|
15.4
|
|
15.5
|
Total Other
Noncurrent Assets
|
|
|
|
|
2,290.8
|
|
2,284.4
|
Total
Assets
|
|
|
|
|
$ 10,091.1
|
|
$ 10,035.6
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
Consolidated Balance
Sheets (GAAP) (continued)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
(in millions,
except share amounts)
|
|
|
|
|
2016
|
|
2015
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
|
|
$
15.0
|
|
$
15.0
|
Accounts
payable
|
|
|
|
|
58.7
|
|
56.8
|
Dividends
payable
|
|
|
|
|
53.6
|
|
-
|
Customer
deposits
|
|
|
|
|
18.8
|
|
17.9
|
Taxes
accrued
|
|
|
|
|
101.0
|
|
106.0
|
Interest
accrued
|
|
|
|
|
37.2
|
|
9.5
|
Exchange gas
payable
|
|
|
|
|
12.1
|
|
18.6
|
Deferred
revenue
|
|
|
|
|
10.5
|
|
15.0
|
Accrued capital
expenditures
|
|
|
|
|
88.7
|
|
100.1
|
Accrued compensation
and related costs
|
|
|
|
|
28.5
|
|
51.9
|
Other
accruals
|
|
|
|
|
89.9
|
|
70.0
|
Total Current
Liabilities
|
|
|
|
|
514.0
|
|
460.8
|
Noncurrent
Liabilities
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
|
2,725.9
|
|
2,725.6
|
Deferred income
taxes
|
|
|
|
|
1,395.3
|
|
1,348.1
|
Accrued liability for
postretirement and postemployment benefits
|
|
|
|
|
48.9
|
|
49.4
|
Regulatory
liabilities
|
|
|
|
|
303.6
|
|
321.6
|
Asset retirement
obligations
|
|
|
|
|
25.1
|
|
25.7
|
Other noncurrent
liabilities
|
|
|
|
|
94.4
|
|
91.4
|
Total Noncurrent
Liabilities
|
|
|
|
|
4,593.2
|
|
4,561.8
|
Total
Liabilities
|
|
|
|
|
5,107.2
|
|
5,022.6
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Common stock, $0.01
par value, 2,000,000,000 shares authorized; 400,383,243 and
399,841,350 shares outstanding, respectively
|
|
|
|
|
4.0
|
|
4.0
|
Additional paid-in
capital
|
|
|
|
|
4,037.1
|
|
4,032.7
|
Retained
earnings
|
|
|
|
|
14.0
|
|
46.9
|
Treasury
stock
|
|
|
|
|
(6.0)
|
|
-
|
Accumulated other
comprehensive loss
|
|
|
|
|
(26.6)
|
|
(27.0)
|
Total CPG
Equity
|
|
|
|
|
4,022.5
|
|
4,056.6
|
Noncontrolling
Interest
|
|
|
|
|
961.4
|
|
956.4
|
Total
Equity
|
|
|
|
|
4,983.9
|
|
5,013.0
|
Total Liabilities
and Equity
|
|
|
|
|
$ 10,091.1
|
|
$ 10,035.6
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
Statements of
Consolidated Cash Flows (GAAP)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, (in millions)
|
|
|
|
|
2016
|
|
2015
|
Operating
Activities
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
$
86.8
|
|
$
97.1
|
Adjustments to
Reconcile Net Income to Net Cash from Continuing
Operations:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
40.4
|
|
32.5
|
Deferred income taxes
and investment tax credits
|
|
|
|
|
40.6
|
|
36.1
|
Deferred
revenue
|
|
|
|
|
(2.0)
|
|
5.3
|
Equity-based
compensation expense and profit sharing contribution
|
|
|
|
|
6.2
|
|
2.1
|
Gain on sale of
assets
|
|
|
|
|
(2.6)
|
|
(5.3)
|
Equity earnings in
unconsolidated affiliates
|
|
|
|
|
(15.9)
|
|
(15.4)
|
Income from
discontinued operations-net of taxes
|
|
|
|
|
(0.2)
|
|
-
|
Amortization of debt
related costs
|
|
|
|
|
1.3
|
|
-
|
AFUDC
equity
|
|
|
|
|
(6.1)
|
|
(3.5)
|
Distributions of
earnings received from equity investees
|
|
|
|
|
18.9
|
|
18.3
|
Changes in Assets and
Liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
|
(6.6)
|
|
12.2
|
Accounts
receivable-affiliated
|
|
|
|
|
-
|
|
15.2
|
Accounts
payable
|
|
|
|
|
(4.4)
|
|
(15.6)
|
Accounts
payable-affiliated
|
|
|
|
|
-
|
|
(8.6)
|
Customer
deposits
|
|
|
|
|
0.9
|
|
0.6
|
Taxes
accrued
|
|
|
|
|
(5.0)
|
|
(8.8)
|
Interest
accrued
|
|
|
|
|
27.7
|
|
-
|
Exchange gas
receivable/payable
|
|
|
|
|
0.5
|
|
(0.1)
|
Other
accruals
|
|
|
|
|
(19.3)
|
|
(9.1)
|
Prepayments and other
current assets
|
|
|
|
|
7.1
|
|
2.7
|
Regulatory
assets/liabilities
|
|
|
|
|
1.5
|
|
15.3
|
Postretirement and
postemployment benefits
|
|
|
|
|
(0.1)
|
|
(8.7)
|
Deferred charges and
other noncurrent assets
|
|
|
|
|
(2.3)
|
|
(0.2)
|
Other noncurrent
liabilities
|
|
|
|
|
2.6
|
|
1.7
|
Net Operating
Activities from Continuing Operations
|
|
|
|
|
170.0
|
|
163.8
|
Net Operating
Activities from Discontinued Operations
|
|
|
|
|
0.3
|
|
-
|
Net Cash Flows
from Operating Activities
|
|
|
|
|
170.3
|
|
163.8
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
(388.9)
|
|
(163.9)
|
Change in short-term
lendings-affiliated
|
|
|
|
|
-
|
|
(698.0)
|
Proceeds from
disposition of assets
|
|
|
|
|
-
|
|
10.2
|
Contributions to
equity investees
|
|
|
|
|
(1.9)
|
|
-
|
Distributions from
equity investees
|
|
|
|
|
0.2
|
|
1.3
|
Other investing
activities
|
|
|
|
|
(2.0)
|
|
(2.4)
|
Net Cash Flows
used for Investing Activities
|
|
|
|
|
(392.6)
|
|
(852.8)
|
Financing
Activities
|
|
|
|
|
|
|
|
Change in short-term
borrowings-affiliated
|
|
|
|
|
-
|
|
(232.1)
|
Debt related
costs
|
|
|
|
|
(0.5)
|
|
-
|
Issuance of long-term
debt-affiliated
|
|
|
|
|
-
|
|
1,217.3
|
Payments of long-term
debt-affiliated, including current portion
|
|
|
|
|
-
|
|
(957.8)
|
Proceeds from the
issuance of common units, net of offering costs
|
|
|
|
|
-
|
|
1,168.4
|
Distribution of IPO
proceeds to parent
|
|
|
|
|
-
|
|
(500.0)
|
Distribution to
noncontrolling interest
|
|
|
|
|
(9.7)
|
|
-
|
Acquisition of
treasury stock
|
|
|
|
|
(6.0)
|
|
-
|
Dividends paid -
common stock
|
|
|
|
|
(51.5)
|
|
-
|
Net Cash Flows
(used for) from Financing Activities
|
|
|
|
|
(67.7)
|
|
695.8
|
Change in cash and
cash equivalents
|
|
|
|
|
(290.0)
|
|
6.8
|
Cash and cash
equivalents at beginning of period
|
|
|
|
|
930.9
|
|
0.5
|
Cash and Cash
Equivalents at End of Period
|
|
|
|
|
$
640.9
|
|
$
7.3
|
|
|
|
|
|
|
|
|
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SOURCE Columbia Pipeline Group, Inc.