RICHMOND, Va., Jan. 29, 2018 /PRNewswire/ -- Dominion Energy
Midstream Partners, LP (NYSE: DM), reported unaudited net income
attributable to the partnership of $52.3
million for the three months ended Dec. 31, 2017 and $195.1
million for the twelve months ended Dec. 31, 2017, nearly double 2016. Adjusted
earnings before interest, income taxes, depreciation and
amortization (Adjusted EBITDA) were $78.6
million for the fourth-quarter and $298.8 million for full-year 2017, almost two and
a half times 2016. Distributable cash flow was $47.6 million for the quarter and $178.2 million for the year, representing a 68
percent increase over 2016. The distribution coverage ratio was
1.22 times at the end of the fourth-quarter with the full-year
coverage ratio of 1.29 times.
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 Jan. 25, 2018, the Board of
Directors declared a quarterly distribution of $0.3180 per common and subordinated unit, payable
on Feb. 15, 2018, to such unitholders
of record at the close of business Feb. 5,
2018. This distribution represents a 5 percent increase over
last quarter and supports the partnership's 22 percent annual
distribution growth rate plan.
CONFERENCE CALL TODAY
Dominion Energy Midstream and Dominion Energy will jointly host a
fourth-quarter earnings conference call at 10 a.m. ET on Monday, Jan. 29, 2018.
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.dominionenergymidstream.com/investors.
A replay of the conference call will be available beginning
about 1 p.m. ET Jan. 29 and lasting until 11 p.m. ET Feb. 5. Domestic callers may
access the recording by dialing (877) 919-4059. International
callers should dial (334) 323-0140. The PIN for the replay is
72633771. Additionally, a replay of the webcast will be
available on the investor information pages by the end of the day
Jan. 29.
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
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(millions, except per
unit data)
|
|
|
|
|
|
|
|
Operating
Revenue
|
$
121.3
|
|
$
177.5
|
|
$
480.2
|
|
$
441.3
|
Operating
Expenses
|
|
|
|
|
|
|
|
Purchased
gas
|
24.0
|
|
33.4
|
|
55.1
|
|
41.7
|
Other operations and
maintenance
|
31.4
|
|
34.3
|
|
133.8
|
|
95.3
|
Depreciation and
amortization
|
24.0
|
|
24.0
|
|
100.8
|
|
56.6
|
Other
taxes
|
8.7
|
|
8.5
|
|
36.5
|
|
30.6
|
Total operating
expenses
|
88.1
|
|
100.2
|
|
326.2
|
|
224.2
|
Income from
operations
|
33.2
|
|
77.3
|
|
154.0
|
|
217.1
|
Earnings from equity
method investees
|
6.8
|
|
8.0
|
|
26.2
|
|
23.0
|
Other
income
|
2.0
|
|
1.0
|
|
6.3
|
|
3.2
|
Interest and related
charges
|
7.4
|
|
6.6
|
|
31.1
|
|
7.3
|
Income from
operations including noncontrolling interest before income
taxes
|
$
34.6
|
|
$
79.7
|
|
$
155.4
|
|
$
236.0
|
Income tax
expense
|
-
|
|
5.1
|
|
-
|
|
6.3
|
Net income
including noncontrolling interest and predecessors
|
$
34.6
|
|
$
74.6
|
|
$
155.4
|
|
$
229.7
|
Less: Net income
attributable to Dominion Energy Questar Pipeline
Predecessor1
|
-
|
|
8.7
|
|
-
|
|
5.5
|
Net income
including noncontrolling interest
|
$
34.6
|
|
$
65.9
|
|
$
155.4
|
|
$
224.2
|
Less: Net income
(loss) attributable to noncontrolling interest
|
(17.7)
|
|
29.4
|
|
(39.7)
|
|
117.8
|
Net income
attributable to partners
|
$
52.3
|
|
$
36.5
|
|
$
195.1
|
|
$
106.4
|
|
|
|
|
|
|
|
|
Net income
attributable to partners' ownership interest
|
|
|
|
|
|
|
|
Preferred
unitholders' interest in net income
|
$
9.5
|
|
$
3.2
|
|
$
38.0
|
|
$
3.2
|
General
partner's interest in net income
|
7.2
|
|
0.6
|
|
14.2
|
|
2.3
|
Common
unitholders' interest in net income
|
24.2
|
|
23.8
|
|
96.9
|
|
63.9
|
Subordinated
unitholder's interest in net income
|
11.4
|
|
8.9
|
|
46.0
|
|
37.0
|
|
|
|
|
|
|
|
|
Net income per
limited partner unit (basic)
|
|
|
|
|
|
|
|
Common
units
|
$
0.36
|
|
$
0.38
|
|
$
1.44
|
|
$
1.30
|
Subordinated
units
|
$
0.36
|
|
$
0.34
|
|
$
1.44
|
|
$
1.17
|
Net income per
limited partner unit (diluted)
|
|
|
|
|
|
|
|
Common
units
|
$
0.33
|
|
$
0.38
|
|
$
1.35
|
|
$
1.30
|
Subordinated
units
|
$
0.36
|
|
$
0.34
|
|
$
1.44
|
|
$
1.17
|
|
1
Represents amounts for the period from September 16, 2016 through
November 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
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(millions)
|
|
|
|
|
|
|
|
|
Net income
including noncontrolling interest and predecessors
|
|
$
34.6
|
|
$
74.6
|
|
$
155.4
|
|
$
229.7
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
24.0
|
|
24.0
|
|
100.8
|
|
56.6
|
Interest and related
charges
|
|
7.4
|
|
6.6
|
|
31.1
|
|
7.3
|
Income tax
expense
|
|
-
|
|
5.1
|
|
-
|
|
6.3
|
EBITDA
|
|
$
66.0
|
|
$
110.3
|
|
$
287.3
|
|
$
299.9
|
Distributions from
equity method investees
|
|
8.4
|
|
7.2
|
|
30.6
|
|
25.1
|
Less:
|
|
|
|
|
|
|
|
|
Earnings from equity
method investees
|
|
6.8
|
|
8.0
|
|
26.2
|
|
23.0
|
EBITDA attributable
to Dominion Energy Questar Pipeline Predecessor
1
|
|
-
|
|
26.8
|
|
-
|
|
28.0
|
EBITDA attributable
to noncontrolling interest
|
|
(11.0)
|
|
36.9
|
|
(7.1)
|
|
148.2
|
Adjusted
EBITDA
|
|
$
78.6
|
|
$
45.8
|
|
$
298.8
|
|
$
125.8
|
|
1Represents amounts for the period from
September 16, 2016 through November 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
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(millions)
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income including
noncontrolling interest and predecessors
|
|
$
34.6
|
|
$
74.6
|
|
$
155.4
|
|
$
229.7
|
Adjustments to
reconcile net income including noncontrolling interest and
predecessors to net cash provided by operating
activities
|
|
1.4
|
|
(14.6)
|
|
127.5
|
|
58.9
|
Net cash provided
by operating activities
|
|
$
36.0
|
|
$
60.0
|
|
$
282.9
|
|
$
288.6
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
$
(179.5)
|
|
$
(1,163.2)
|
|
$
(907.2)
|
|
$
(2,122.8)
|
|
|
|
|
|
|
|
|
|
Net cash provided
by financing activities
|
|
$
75.7
|
|
$
1,064.7
|
|
$
595.7
|
|
$
1,838.8
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
78.8
|
|
78.1
|
|
39.6
|
|
35.0
|
Cash and cash
equivalents at end of period
|
|
$
11.0
|
|
$
39.6
|
|
$
11.0
|
|
$
39.6
|
|
* 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
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(millions)
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
$
36.0
|
|
$
60.0
|
|
$
282.9
|
|
$
288.6
|
Less:
|
|
|
|
|
|
|
|
|
Cash attributable to
(from) noncontrolling interest
|
|
(22.8)
|
|
17.9
|
|
(3.9)
|
|
150.5
|
Cash attributable to
Dominion Energy Questar Pipeline Predecessor
1
|
|
-
|
|
1.1
|
|
-
|
|
19.7
|
Other changes in
working capital and noncash adjustments
|
|
5.2
|
|
4.8
|
|
(3.1)
|
|
7.4
|
Cash received from
distribution reserve
|
|
12.5
|
|
-
|
|
12.5
|
|
-
|
Equity method
investee distributions included in investing activities
|
|
2.1
|
|
-
|
|
2.6
|
|
-
|
Adjusted
EBITDA
|
|
78.6
|
|
45.8
|
|
298.8
|
|
125.8
|
Adjustments to
cash:
|
|
|
|
|
|
|
|
|
Less:
Distributions to preferred unitholders
|
|
(9.5)
|
|
(3.2)
|
|
(38.0)
|
|
(3.2)
|
Plus: Deferred
revenue
|
|
0.3
|
|
3.0
|
|
(0.1)
|
|
5.0
|
Less:
Amortization of regulatory liability
|
|
(0.7)
|
|
(0.7)
|
|
(2.8)
|
|
(2.8)
|
Less:Maintenance capital
expenditures
|
|
(12.4)
|
|
(5.2)
|
|
(51.1)
|
|
(16.0)
|
Plus:Acquisition costs funded by Dominion
Energy
|
|
0.1
|
|
1.2
|
|
6.0
|
|
1.6
|
Less:Interest
expense and AFUDC equity
|
|
(8.9)
|
|
(3.3)
|
|
(34.9)
|
|
(4.8)
|
Plus:Non-cash
director compensation
|
|
0.1
|
|
0.1
|
|
0.3
|
|
0.3
|
Distributable cash
flow
|
|
$
47.6
|
|
$
37.7
|
|
$
178.2
|
|
$
105.9
|
|
1Represents amounts for the period from
September 16, 2016 through November 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 E -
Selected Financial Data*
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(millions)
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
78.6
|
|
$
45.8
|
|
$
298.8
|
|
$
125.8
|
Adjustments to
cash:
|
|
|
|
|
|
|
|
|
Less:
Distributions to preferred unitholders
|
|
(9.5)
|
|
(3.2)
|
|
(38.0)
|
|
(3.2)
|
Plus: Deferred
revenue
|
|
0.3
|
|
3.0
|
|
(0.1)
|
|
5.0
|
Less:
Amortization of regulatory liability
|
|
(0.7)
|
|
(0.7)
|
|
(2.8)
|
|
(2.8)
|
Less:Maintenance capital
expenditures
|
|
(12.4)
|
|
(5.2)
|
|
(51.1)
|
|
(16.0)
|
Plus:Acquisition costs funded by Dominion
Energy
|
|
0.1
|
|
1.2
|
|
6.0
|
|
1.6
|
Less:Interest
expense and AFUDC equity
|
|
(8.9)
|
|
(3.3)
|
|
(34.9)
|
|
(4.8)
|
Plus:Non-cash
director compensation
|
|
0.1
|
|
0.1
|
|
0.3
|
|
0.3
|
Distributable Cash
Flow
|
|
$
47.6
|
|
$
37.7
|
|
$
178.2
|
|
$
105.9
|
Distributions:
|
|
|
|
|
|
|
|
|
Incentive
distribution rights
|
|
7.3
|
|
1.7
|
|
20.2
|
|
3.9
|
Common
unitholders
|
|
21.6
|
|
17.5
|
|
79.7
|
|
53.8
|
Subordinated
unitholder
|
|
10.2
|
|
8.3
|
|
37.9
|
|
30.9
|
Total
distributions1
|
|
$
39.1
|
|
$
27.5
|
|
$
137.8
|
|
$
88.6
|
Coverage
Ratio
|
|
1.22x
|
|
1.37x
|
|
1.29x
|
|
1.20x
|
|
1
Distributions declared to common units is based on units
outstanding at December 31, 2017 and therefore excludes
distributions paid on units issued to the public through February
5, 2018.
|
|
* 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
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SOURCE Dominion Energy Midstream Partners