RICHMOND, Va., Aug. 2, 2017 /PRNewswire/ -- Dominion Energy
Midstream Partners, LP (NYSE: DM) reported unaudited net income
attributable to the partnership of $42.0
million for the three months ended June 30, 2017. Adjusted earnings before
interest, income taxes, depreciation and amortization (Adjusted
EBITDA) was $68.6 million, which
includes $4.0 million of Dominion
Energy Questar Pipeline integration costs that were reimbursed by
its general partner. Distributable cash flow was $40.7 million for the 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 July 21, 2017, the Board of Directors declared a
quarterly distribution of $0.2880 per
common and subordinated unit, payable on Aug. 15, 2017, to such unitholders of record at
the close of business Aug. 4, 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 second-quarter earnings
conference call at 9 a.m. ET on
Wednesday, Aug. 2, 2017.
Management will discuss its second-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 Aug. 2, 2017 and lasting until 11 p.m. ET Aug. 9,
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 89026239.
Additionally, a replay of the webcast will be available on the
investor information pages by the end of the day Aug. 2, 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(millions, except per
unit data)
|
|
|
|
|
|
|
|
|
Operating
Revenue
|
$
115.7
|
|
$
85.6
|
|
$
245.9
|
|
$
168.6
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Purchased
gas
|
9.8
|
|
4.0
|
|
22.0
|
|
4.9
|
|
Other operations and
maintenance
|
38.1
|
|
16.1
|
|
69.2
|
|
36.1
|
|
Depreciation and
amortization
|
25.4
|
|
10.2
|
|
50.3
|
|
20.2
|
|
Other
taxes
|
9.2
|
|
6.8
|
|
18.5
|
|
14.1
|
|
Total operating
expenses
|
82.5
|
|
37.1
|
|
160.0
|
|
75.3
|
|
Income from
operations
|
33.2
|
|
48.5
|
|
85.9
|
|
93.3
|
|
Earnings from equity
method investees
|
5.2
|
|
3.7
|
|
13.2
|
|
10.1
|
|
Other
income
|
1.3
|
|
0.9
|
|
2.6
|
|
1.4
|
|
Interest and related
charges (benefit)
|
8.1
|
|
-
|
|
15.8
|
|
(0.1)
|
|
Net income
including noncontrolling interest and predecessors
|
$
31.6
|
|
$
53.1
|
|
$
85.9
|
|
$
104.9
|
|
Less: Net income
(loss) attributable to noncontrolling interest
|
(10.4)
|
|
30.6
|
|
(8.3)
|
|
59.3
|
|
Net income
attributable to partners
|
$
42.0
|
|
$
22.5
|
|
$
94.2
|
|
$
45.6
|
|
|
|
|
|
|
|
|
|
Net income
attributable to partners' ownership interest
|
|
|
|
|
|
|
|
|
Preferred
unitholders' interest in net income
|
$
9.5
|
|
$
-
|
|
$
19.0
|
|
$
-
|
|
General
partner's interest in net income
|
0.3
|
|
0.6
|
|
3.0
|
|
1.0
|
|
Common
unitholders' interest in net income
|
21.8
|
|
12.9
|
|
48.9
|
|
26.3
|
|
Subordinated
unitholder's interest in net income
|
10.4
|
|
9.0
|
|
23.3
|
|
18.3
|
|
|
|
|
|
|
|
|
|
Net income per
limited partner unit (basic)
|
|
|
|
|
|
|
|
|
Common
units
|
$
0.33
|
|
$
0.28
|
|
$
0.73
|
|
$
0.57
|
|
Subordinated
units
|
$
0.33
|
|
$
0.28
|
|
$
0.73
|
|
$
0.57
|
|
Net income per
limited partner unit (diluted)
|
|
|
|
|
|
|
|
|
Common
units
|
$
0.31
|
|
$
0.28
|
|
$
0.67
|
|
$
0.57
|
|
Subordinated
units
|
$
0.33
|
|
$
0.28
|
|
$
0.73
|
|
$
0.57
|
|
|
|
|
|
|
|
|
|
* 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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(millions)
|
|
|
|
|
|
|
|
|
|
Net income
including noncontrolling interest and predecessors
|
|
$
31.6
|
|
$
53.1
|
|
$
85.9
|
|
$
104.9
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
25.4
|
|
10.2
|
|
50.3
|
|
20.2
|
|
Interest and related
charges (benefit)
|
|
8.1
|
|
-
|
|
15.8
|
|
(0.1)
|
|
EBITDA
|
|
$
65.1
|
|
$
63.3
|
|
$
152.0
|
|
$
125.0
|
|
Distributions from
equity method investees
|
|
7.0
|
|
5.9
|
|
14.0
|
|
11.7
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Earnings from equity
method investees
|
|
5.2
|
|
3.7
|
|
13.2
|
|
10.1
|
|
EBITDA attributable
to noncontrolling interest
|
|
(1.7)
|
|
38.3
|
|
8.8
|
|
74.5
|
|
Adjusted
EBITDA
|
|
$
68.6
|
|
$
27.2
|
|
$
144.0
|
|
$
52.1
|
|
|
|
|
|
|
|
|
|
|
* 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 C-
Summary of Consolidated Statements of Cash Flows*
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(millions)
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
including noncontrolling interest and predecessors
|
|
$
31.6
|
|
$
53.1
|
|
$
85.9
|
|
$
104.9
|
|
Adjustments to
reconcile net income including noncontrolling interest and
predecessors to net cash provided by operating
activities
|
|
33.4
|
|
8.8
|
|
89.1
|
|
25.5
|
|
Net cash provided
by operating activities
|
|
$
64.7
|
|
$
61.9
|
|
$
175.0
|
|
$
130.4
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
$
(175.3)
|
|
$ (354.4)
|
|
$
(537.1)
|
|
$ (654.2)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by financing activities
|
|
$
90.0
|
|
$
281.3
|
|
$
393.0
|
|
$
513.0
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
91.1
|
|
35.4
|
|
39.6
|
|
35.0
|
|
Cash and cash
equivalents at end of period
|
|
$
70.5
|
|
$
24.2
|
|
$
70.5
|
|
$
24.2
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(millions)
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
$
64.7
|
|
$
61.9
|
|
$
175.0
|
|
$
130.4
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Cash
attributable to noncontrolling interest
|
|
1.8
|
|
38.8
|
|
20.6
|
|
79.5
|
|
Other changes in
working capital and noncash adjustments
|
|
5.5
|
|
4.1
|
|
(10.9)
|
|
1.2
|
|
Equity method
investee distributions included in investing activities
|
0.2
|
|
-
|
|
0.5
|
|
-
|
|
Adjusted
EBITDA
|
|
68.6
|
|
27.2
|
|
144.0
|
|
52.1
|
|
Adjustments to
cash:
|
|
|
|
|
|
|
|
|
|
Less:
Distributions to preferred unitholders
|
|
(9.5)
|
|
-
|
|
(19.0)
|
|
-
|
|
Plus
(less): Deferred revenue
|
|
(0.2)
|
|
-
|
|
(0.3)
|
|
2.0
|
|
Less:
Amortization of regulatory liability
|
|
(0.7)
|
|
(0.7)
|
|
(1.4)
|
|
(1.4)
|
|
Less:
Maintenance capital expenditures
|
|
(12.7)
|
|
(2.3)
|
|
(25.9)
|
|
(7.8)
|
|
Plus:
Acquisition costs funded by Dominion Energy
|
|
4.0
|
|
0.1
|
|
4.2
|
|
0.1
|
|
Less:
Interest expense and AFUDC equity
|
|
(8.8)
|
|
(0.5)
|
|
(16.9)
|
|
(1.0)
|
|
Plus:
Non-cash director compensation
|
|
-
|
|
-
|
|
0.1
|
|
0.1
|
|
Distributable cash
flow
|
|
$
40.7
|
|
$
23.8
|
|
$
84.8
|
|
$
44.1
|
|
|
|
|
|
|
|
|
|
|
* 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.
|
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
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(millions, except
ratio)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
68.6
|
|
$
27.2
|
|
$
144.0
|
|
$
52.1
|
|
Adjustments to
cash:
|
|
|
|
|
|
|
|
|
|
Less:
Distributions to preferred unitholders
|
|
(9.5)
|
|
-
|
|
(19.0)
|
|
-
|
|
Plus
(less): Deferred revenue
|
|
(0.2)
|
|
-
|
|
(0.3)
|
|
2.0
|
|
Less:
Amortization of regulatory liability
|
|
(0.7)
|
|
(0.7)
|
|
(1.4)
|
|
(1.4)
|
|
Less:
Maintenance capital expenditures
|
|
(12.7)
|
|
(2.3)
|
|
(25.9)
|
|
(7.8)
|
|
Plus:
Acquisition costs funded by Dominion Energy
|
|
4.0
|
|
0.1
|
|
4.2
|
|
0.1
|
|
Less:
Interest expense and AFUDC equity
|
|
(8.8)
|
|
(0.5)
|
|
(16.9)
|
|
(1.0)
|
|
Plus:
Non-cash director compensation
|
|
-
|
|
-
|
|
0.1
|
|
0.1
|
|
Distributable cash
flow
|
|
$
40.7
|
|
$
23.8
|
|
$
84.8
|
|
$
44.1
|
|
Distributions:
|
|
|
|
|
|
|
|
|
|
Incentive
distribution rights
|
|
4.3
|
|
0.7
|
|
7.2
|
|
1.1
|
|
Common
unitholders
|
|
19.4
|
|
10.7
|
|
37.8
|
|
21.0
|
|
Subordinated
unitholder
|
|
9.2
|
|
7.6
|
|
18.0
|
|
14.7
|
|
Total
distributions
|
|
$
32.9
|
|
$
19.0
|
|
$
63.0
|
|
$
36.8
|
|
Coverage
ratio
|
|
1.24x
|
|
1.25x
|
|
1.35x
|
|
1.20x
|
|
|
* 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.
|
|
|
View original
content:http://www.prnewswire.com/news-releases/dominion-energy-midstream-partners-announces-second-quarter-2017-earnings-300497856.html
SOURCE Dominion Midstream Partners