USA: El Paso Pipeline Partners Net Income Up

El Paso Pipeline Partners reported first quarter 2012 financial and operational results.

First Quarter 2012 Highlights:

--  $0.54 earnings per common unit
--  $170 million distributable cash flow, a 12 percent increase from first
    quarter 2011
--  $246 million adjusted earnings before interest, taxes, depreciation
    and amortization (Adjusted EBITDA), up 7 percent from 2011 levels
--  Raised quarterly cash distributions to $0.51 per common unit, an 11
    percent increase from first quarter 2011

“We’ve started the year with another quarter of good results,” said Jim Yardley, president and chief executive officer of the general partner of El Paso Pipeline Partners.

“The partnership continues to grow; as a result, we raised the quarterly distributions to our unitholders for the 16th consecutive time, something we’ve done every quarter since our initial public offering (IPO) in November 2007.”

The partnership’s first quarter financial results reflect the benefits of acquisitions during 2011 and the completion of the first two phases of the Southern Natural Gas (SNG) South System III Expansion. Acquisitions included an aggregate 40 percent additional interest in SNG in March and June 2011 and an additional 28 percent interest in Colorado Interstate Gas (CIG) in June 2011. The benefits of acquisitions and expansions were partially offset by nonrenewal and restructuring of expiring contracts.

Net income attributable to limited partners continues to grow; as the partnership reported $111 million for the first quarter of 2012, which is an 8 percent jump from the same 2011 period. However, earnings per common unit were slightly lower than a year ago due to higher general partner distributions and an increase in weighted average units outstanding.

Adjusted EBITDA grew 7 percent to $246 million, while distributable cash flow was up 12 percent to $170 million. Adjusted EBITDA and distributable cash flow were higher as a result of the acquisition of 15 percent of SNG and 28 percent of CIG in June 2011 and the expansion projects referenced above. Also contributing to the increase was lower maintenance capital costs, as a result of project timing, which was partially offset by higher interest expenses. Distribution coverage remained strong at 1.3 for the first quarter of 2012.

[mappress]
LNG World News Staff, May 4, 2012