Boardwalk Pipeline’s net-debt-to-adjusted EBITDA
Boardwalk Pipeline’s net-debt-to-adjusted EBITDA multiple stood at 4.5x at the end of 3Q16, which is within the average range for the industry. MLPs generally target a ratio between 4.0x–4.5x.
However, BWP’s leverage situation is high compared to its target level of 4.0x to resume distribution growth, which has concerned BWP’s stakeholders for several quarters. BWP declared a flat distribution of $0.10 per unit for 3Q16 despite a strong distribution coverage. Investors looking for BWP’s distribution growth would be curious to know BWP’s leverage situation in 4Q16.