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How Boardwalk Pipeline’s Stock Performed So Far in 2016

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Boardwalk Pipeline’s market performance

Boardwalk Pipeline Partners (BWP), which mainly provides natural gas and natural gas liquids transportation and storage services, has gained 32.1% YTD (year-to-date). At the same time, the Alerian MLP ETF (AMLP), which comprises 26 midstream energy MLPs, has gained 10.0%.

However, BWP is still trading 27.2% lower than the levels before the distribution cuts. BWP’s YTD outperformance relative to AMLP could be attributed to its low crude oil exposure and involvement in fee-based natural gas activities.

Among Boardwalk Pipeline Partners’s (BWP) peers, EQT Midstream Partners (EQM) and Williams Partners (WPZ) have gained 6.0% and 46.3%, respectively, in 2016.

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A look at BWP’s moving averages

Currently, Boardwalk Pipeline Partners is trading just below its 50-day moving average and 10.6% above its 200-day moving average. Plus, the 50-day moving average surpassed the 200-day moving average in June 2016, indicating a bullish trend in BWP’s stock.

Boardwalk Pipeline’s 2Q16 earnings

Boardwalk Pipeline Partners’s (BWP) 2Q16 adjusted EBITDA[1. earnings before interest, taxes, depreciation, and amortization] increased to $190.3 million from $167.3 million in 2Q15, a year-over-year increase of 13.7%. The increase in BWP’s 2Q16 adjusted EBITDA was mainly driven by the following factors:

  • return to service of Evangeline pipeline
  • expansion projects placed into service
  • $13 million of proceeds from the settlement of a legal claim

In this series, we’ll analyze BWP’s balance position and cash flow measures. Following an analysis of BWP’s operating results, we’ll look into BWP’s valuations, commodity price exposure, key performance indicators, and analyst projections.

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