Quarterly Results Roundup: MLPs' Performance in 3Q17

1 2 3 4 5 6 7 8 9 10 11 12 13 14
Part 13
Quarterly Results Roundup: MLPs' Performance in 3Q17 PART 13 OF 14

Boardwalk Pipeline Partners’ Earnings Recover in 3Q17

Earnings in 3Q17

Boardwalk Pipeline Partners (BWP), mainly involved in natural gas and NGL (natural gas liquid) transportation, storage, and marketing, saw a recovery in its 3Q17 earnings after a dismal 2Q17. BWP’s EBITDA (earnings before interest, tax, depreciation, and amortization) rose 8.8% to $191.7 million in 3Q17 from $176.2 million in 3Q16. Moreover, the partnership met its 3Q17 EBITDA estimate.

Boardwalk Pipeline Partners&#8217; Earnings Recover in 3Q17

Interested in BWP? Don't miss the next report.

Receive e-mail alerts for new research on BWP

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

BWP’s 3Q17 EBITDA growth was mainly driven by expansion projects placed into service. This growth was partially offset by lower parking and lending revenue and a fall resulting from the sale of its interest in the Flag City processing plant. The partnership’s distributable cash flow grew to $112 million in 3Q17 from $90 million in 3Q16, a YoY (year-over-year) rise of 24.4%, driving the partnership’s distribution coverage higher to 4.4x. However, the partnership will likely keep its distribution flat at $0.10 per unit, considering its high leverage and significant capital expansion plans.

Analysts’ recommendations

RBC Capital Markets last downgraded BWP from “outperform” to “sector perform,” which is equivalent to “hold,” in August 2017—the only rating update for BWP in 2017. Of the analysts covering BWP, 50.0% had recommended “buy,” 40.0% had recommended “hold,” and the remaining 10.0% had recommended “sell” as of November 8. BWP’s average target price of $19.40 implies a 33.0% potential upside based on its current price.


Please select a profession that best describes you: