RICHMOND, Va., Feb. 6, 2015 /PRNewswire/ -- Dominion
Midstream Partners (NYSE: DM) reported unaudited net income
attributable to DM of $9.5 million,
or $0.15 per limited partner unit for
the period from the closing of its initial public offering (IPO) on
Oct. 20, 2014 through Dec. 31, 2014 (the post-IPO period).
Adjusted earnings before interest, income taxes, depreciation and
amortization (Adjusted EBITDA) attributable to DM was $9.5 million and distributable cash flow
attributable to DM was $9.6 million
for the post-IPO period.
QUARTERLY DISTRIBUTION
On Jan. 23, the board of directors declared its
fourth-quarter 2014 cash distribution of $0.1389 per unit for the post-IPO period.
The pro-rated distribution corresponds to the minimum quarterly
distribution of $0.175 per unit, or
$0.70 per unit annually.
Distributions are payable on Feb. 13,
2015, to unit holders of record at the close of business
Feb. 3, 2015.
BASIS OF 2014 RESULTS
Results of operations
for 2014 include the results of Dominion Midstream Partners'
predecessor through Oct. 19,
2014. Because results presented for periods prior to the IPO
do not factor into distributable cash flow, this earnings release
focuses on results of operations for the post-IPO period. A
reconciliation of the post-IPO period to the full year 2014 results
is provided in the tables attached to this release.
ANALYST MEETING
Dominion Midstream Partners
will also host an analyst meeting at The Waldorf Astoria in
New York on Monday, Feb. 9, 2015, from 9:00 a.m. to 11:30 a.m. ET. Management will
discuss its long-term growth plan for Dominion Midstream,
distribution policies and other matters of interest to the
financial community. Following the formal presentation
management will be available to those in attendance for
questions. A live webcast, including accompanying slides,
will be available on the company's investor information page at
www.dommidstream.com/investors.
ABOUT DOMINION MIDSTREAM
Dominion Midstream is
a growth-oriented Delaware limited
partnership formed by Dominion Resources, Inc. in March 2014 to initially own all of the
outstanding preferred equity interests in Dominion Cove Point LNG,
LP, a Delaware limited
partnership, which owns liquefied natural gas import, storage,
regasification and transportation 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 -
Results of Operations*
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(Unaudited)
|
|
Presented below are
selected amounts related to Dominion Midstream's results of
operations:
|
|
|
|
|
|
|
|
Year Ended
|
|
|
December
31,
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
(millions)
|
|
|
|
|
|
Operating
revenue
|
|
$ 313.3
|
|
$ 343.5
|
Purchased
gas
|
|
59.6
|
|
91.7
|
Net revenue
|
|
253.7
|
|
251.8
|
Other operations and
maintenance
|
|
34.9
|
|
27.9
|
Depreciation and
amortization
|
|
37.7
|
|
31.7
|
Other
taxes
|
|
22.4
|
|
21.1
|
Income tax
expense
|
|
51.8
|
|
61.7
|
Net income including
noncontrolling interest
|
|
$ 106.9
|
|
$ 109.4
|
Less: Predecessor
income prior to initial public offering on October 20,
2014
|
|
80.6
|
|
|
Net income including
noncontrolling interest subsequent to initial public
offering
|
|
26.3
|
|
|
Less: Net Income
attributable to noncontrolling interest subsequent to initial
public offering
|
|
16.8
|
|
|
Net income
attributable to Dominion Midstream subsequent to IPO
|
|
$ 9.5
|
|
|
|
|
|
|
|
EBITDA
|
|
$ 196.4
|
|
$ 202.8
|
Adjusted EBITDA
1
|
|
$ 9.5
|
|
|
Distributable cash
flow 1
|
|
$ 9.6
|
|
|
|
|
|
|
|
Distributions to
public common unitholders 1
|
|
2.8
|
|
|
Distributions to
Dominion 1
|
|
|
|
|
Common units
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|
1.7
|
|
|
Subordinated units
|
|
4.4
|
|
|
Total
distributions
|
|
$ 8.9
|
|
|
|
|
|
|
|
Aggregate Minimum
Quarterly Distribution (MQD)
|
|
$ 8.9
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|
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Excess cash available
for distribution above MQD
|
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$ 0.7
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|
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% Excess cash
available for distribution above MQD
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|
7.3%
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|
|
|
|
|
|
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1)
Represents amounts for the period from October 20, 2014 to December
31, 2014.
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|
*The notes contained
in Dominion Midstream's quarterly report on Form 10-Q or annual
report on Form 10-K to be
filed for year ended Dec. 31, 2014 are an integral part of the
Consolidated Financial Statements.
|
HOW WE EVALUATE OUR OPERATIONS
Dominion Midstream management uses a variety of financial
metrics to analyze our performance. These metrics are significant
factors in assessing our operating results and include: (1) EBITDA;
(2) Adjusted EBITDA; and (3) distributable cash flows.
EBITDA represents net income including noncontrolling interest
before interest and related charges, income tax and depreciation
and amortization. Adjusted EBITDA represents EBITDA after
adjustment for a noncontrolling interest in Cove Point held by
Dominion subsequent to the IPO. Distributable cash flows is defined
as EBITDA adjusted for known timing differences between cash and
income, less capital expenditures, plus contributions from Dominion
to fund capital expenditures, and less cash attributable to the
noncontrolling interest in Cove Point held by Dominion subsequent
to the IPO.
The GAAP measure most directly comparable to EBITDA and Adjusted
EBITDA is net income, and the GAAP measure most directly comparable
to distributable cash flows is net cash provided by operating
activities. EBITDA, Adjusted EBITDA and distributable cash flows
should not be considered alternatives to net income, operating
income, cash flow from operating activities or any other measure of
financial performance or liquidity presented in accordance with
GAAP. EBITDA, Adjusted EBITDA and distributable cash flows exclude
some, but not all, items that affect net income and operating
income, and these measures may vary among other companies.
Therefore, EBITDA, Adjusted EBITDA and distributable cash flows as
presented may not be comparable to similarly titled measures of
other companies.
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 year. The Adjusted EBITDA measure is
not
applicable to the
year ending Dec. 31, 2013.
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
December
31,
|
|
|
2014
|
|
2013
|
Net income
including noncontrolling interest
|
|
$ 106.9
|
|
$ 109.4
|
Add:
|
|
|
|
|
|
Depreciation and
amortization
|
|
37.7
|
|
31.7
|
|
Interest and related
charges
|
|
-
|
|
-
|
|
Income tax
expense
|
|
51.8
|
|
61.7
|
EBITDA
|
|
$ 196.4
|
|
$ 202.8
|
Less:
|
|
|
|
|
|
Predecessor EBITDA
prior to initial public offering
|
|
157.5
|
|
|
EBITDA subsequent
to initial public offering
|
|
38.9
|
|
|
|
EBITDA attributable
to noncontrolling interest 1
|
|
29.4
|
|
|
Adjusted EBITDA
1
|
|
$ 9.5
|
|
|
|
|
|
|
|
|
1)
Represents amounts for the period from
October 20, 2014 to December 31, 2014.
|
|
*The notes contained
in Dominion Midstream's quarterly report on Form 10-Q or annual
report on Form 10-K to be filed
for year ended Dec. 31, 2014 are an integral part of the
Consolidated Financial Statements.
|
Dominion Midstream
Partners, LP
|
Schedule C -
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 2014.
|
|
|
|
|
|
|
|
Year Ended
|
|
|
December 31,
2014
|
|
|
|
Net cash provided
by operating activities
|
$
156.1
|
Add:
|
|
|
Income tax
expense
|
51.8
|
|
Changes in working
capital
|
(11.5)
|
EBITDA
|
196.4
|
Less:
|
|
|
Predecessor EBITDA
prior to initial public offering
|
157.5
|
EBITDA subsequent
to initial public offering
|
38.9
|
|
|
|
Adjustments to
cash:
|
|
|
Plus:
Other taxes 1
|
4.3
|
|
Less:
Renegotiated contract payments 2
|
(2.6)
|
|
Less:
Maintenance capital expenditures 3
|
(4.5)
|
|
Less:
Expansion capital expenditures 3
|
(208.0)
|
|
Plus: Net
proceeds from the IPO to fund capital expenditures
4
|
340.9
|
|
Less: Net
proceeds from the IPO to be used to fund future capital
expenditures 3
|
(128.4)
|
|
Plus:
Non-cash director compensation
|
0.1
|
Cash available to
Dominion Midstream and noncontrolling interest
5
|
40.7
|
|
|
|
Cash attributable to
noncontrolling interest 5, 6
|
31.1
|
Distributable cash
flows 5
|
$
9.6
|
|
|
|
1)
|
Adjustment to reflect
the timing difference between cash paid for property taxes and the
amount recognized into
expense.
|
2)
|
Cove Point
renegotiated certain import-related contracts that resulted, and
will result, in annual payments in the years 2013 through 2017 totaling approximately $50
million. This is to adjust for the difference between cash
received and revenue
recognized.
|
3)
|
Reflects maintenance
capital expenditures on the Cove Point LNG Facility and Cove Point
Pipeline to maintain Cove Point's
long-term operating capacity and operating income and expansion
capital expenditures, primarily for the Liquefaction Project, made to increase Cove
Point's long-term operating capacity and operating income
whether through construction or
acquisitions. Dominion has indicated that it intends to provide the
funding necessary for the
maintenance and expansion capital expenditures for both the
existing Cove Point LNG Facility and Cove Point Pipeline
and the Liquefaction Project, but is
under no obligation to do so.
|
4)
|
Net proceeds from the
IPO were contributed to Cove Point to fund capital expenditures.
Any excess of net proceeds from
the IPO over capital expenditures for the year will be used to fund
capital expenditures in future periods.
|
5)
|
Represents amounts
for the period from October 20, 2014 to December 31,
2014.
|
6)
|
The Preferred Equity
Interest is a perpetual, non-convertible preferred equity interest
entitled to the first $50
million of annual cash distributions made by Cove Point. Any excess
in cash available over $50 million is attributable to the noncontrolling interest but not
available for distribution until the distribution reserve
has been fully funded.
|
|
*The notes contained
in Dominion Midstream's quarterly report on Form 10-Q or annual
report on Form 10-K to be filed for year
ended Dec. 31, 2014 are an
integral part of the Consolidated Financial
Statements.
|
Dominion Midstream
Partners, LP
|
Schedule D -
Consolidated Statements of Income*
|
Unaudited (GAAP
Based)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year Ended
December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
(Predecessor)
|
|
|
|
(Predecessor)
|
(in millions, except
per unit data)
|
|
|
|
|
|
|
|
|
Operating
Revenue
|
|
$
67.5
|
|
$
67.5
|
|
$
313.3
|
|
$
343.5
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Purchased gas
|
|
4.1
|
|
4.1
|
|
59.6
|
|
91.7
|
Other
operations and maintenance
|
|
6.7
|
|
6.4
|
|
34.9
|
|
27.9
|
Depreciation and amortization
|
|
14.2
|
|
7.7
|
|
37.7
|
|
31.7
|
Other
taxes
|
|
5.6
|
|
5.4
|
|
22.4
|
|
21.1
|
Total
operating expenses
|
|
30.6
|
|
23.6
|
|
154.6
|
|
172.4
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
36.9
|
|
43.9
|
|
158.7
|
|
171.1
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
0.1
|
|
-
|
|
-
|
|
-
|
Income from
operations including noncontrolling interest before income
taxes
|
|
37.0
|
|
43.9
|
|
158.7
|
|
171.1
|
Income tax
expense
|
|
5.3
|
|
16.6
|
|
51.8
|
|
61.7
|
|
|
|
|
|
|
|
|
|
Net income
including noncontrolling interest
|
|
$
31.7
|
|
$
27.3
|
|
$
106.9
|
|
$
109.4
|
Less: Predecessor
income prior to initial public offering on October 20,
2014
|
|
5.4
|
|
|
|
80.6
|
|
|
Net income
including noncontrolling interest subsequent to initial public
offering
|
|
26.3
|
|
|
|
26.3
|
|
|
Less: Net income
attributable to noncontrolling interest subsequent to initial
public offering
|
|
16.8
|
|
|
|
16.8
|
|
|
Net income
attributable to limited partners subsequent to initial public
offering
|
|
$
9.5
|
|
|
|
$
9.5
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to partners ownership interest subsequent to initial
public offering
|
|
|
|
|
|
|
|
|
Common unitholder's interest in net income
|
|
4.8
|
|
|
|
4.8
|
|
|
Subordinated unitholder's interest in net income
|
|
4.7
|
|
|
|
4.7
|
|
|
Net income
attributable to Dominion Midstream Partners, LP
|
|
9.5
|
|
|
|
9.5
|
|
|
|
|
|
|
|
|
|
|
|
Net income
subsequent to initial public offering per partner unit (basic and
diluted)
|
|
|
|
|
|
|
|
|
Common Units
|
|
$
0.15
|
|
|
|
$
0.15
|
|
|
Subordinated Units
|
|
$
0.15
|
|
|
|
$
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*The notes contained
in Dominion Midstream's quarterly report on Form 10-Q or annual
report on Form 10-K to be filed for year ended Dec. 31, 2014 are an integral part of the
Consolidated Financial Statements.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dominion-midstream-partners-announces-2014-earnings-300032328.html
SOURCE Dominion Midstream Partners