HOUSTON, Aug. 3, 2015 /PRNewswire/ -- Columbia
Pipeline Group, Inc. (NYSE: CPGX) reported net operating earnings
from continuing operations (non-GAAP) of $61.2 million for the three months ended
June 30, 2015, compared with
$59.4 million for the prior year
period. Operating earnings (non-GAAP) for the second quarter were
$109.1 million compared to
$103.9 million for the prior year
period. For the quarter, Adjusted EBITDA (non-GAAP) was
$138.6 million compared to
$126.6 million in 2014. Additionally,
distributable cash flow (non-GAAP) was $27.9
million for the second quarter. Please refer to
Schedules 1 and 2 in the financial tables below for a
reconciliation of our non-GAAP financial measures to the most
directly comparable GAAP financial measures.
On a GAAP basis, CPG reported income from continuing operations
for the three months ended June 30,
2015 of $60.1 million compared
to $59.4 million for the prior year
period. Operating income in the second quarter was $107.3 million compared to $103.9 million for the prior year period.
"Our core investment strategies continue to deliver solid
financial and operational results squarely in line with our
expectations," said CPG Chairman and Chief Executive Officer,
Robert C. Skaggs, Jr. "CPG
teams are successfully delivering on significant growth and
modernization projects as we continue to provide solutions for
Marcellus and Utica producers as
well as existing and prospective demand-side customers. These
investments are expected to drive strong long-term EBITDA and
dividend growth for CPG."
Second Quarter Highlights
CPG's separation from NiSource Inc. successfully
completed
On July 1, 2015, CPG's planned
separation from NiSource Inc. was successfully completed, creating
a stand-alone, public company, which trades on the New York Stock
Exchange under the ticker symbol "CPGX."
"A tremendous amount of hard work by the CPG and NiSource teams
allowed us to successfully execute our separation strategy. As a
standalone pipeline, midstream and storage company, we believe CPG
presents a compelling investment proposition -- a unique
combination of very stable cash flows, a high quality and diverse
customer base and highly visible growth driven by an unmatched
position in the country's most prolific shale basins," Skaggs
said.
Prior to separation, CPG successfully completed its debt
recapitalization process, issuing $2.75
billion of investment grade debt with a weighted average
term of 11 years and a weighted average coupon of approximately 4
percent. With a strong financial foundation, CPG is well positioned
to execute on its deep inventory of infrastructure investments.
Growth Project Update
In total, CPG is on track to invest approximately $1.2 billion during 2015 and expects to triple
its net investment level by 2020. During the second quarter, CPG
continued to strengthen its competitive market position in the
Marcellus and Utica Shale production regions by advancing several
major growth projects. CPG also continued to execute its long-term
system modernization program.
- On June 24, CPG announced that
the Mountaineer XPress (MXP) and Gulf XPress (GXP) projects had
received Board approval and moved into the execution phase. These
projects will provide significant new takeaway capacity for
Marcellus and Utica Shale production. Specifically, MXP will
provide up to 2.7 billion cubic feet per day of firm transportation
capacity on the Columbia Gas Transmission system and GXP will
provide nearly 900 million cubic feet per day of firm
transportation capacity on the Columbia Gulf Transmission system.
Together, the projects involve an investment of approximately
$2.7 billion and are targeted to be
placed in service in the fourth quarter of 2018.
- Separately, Columbia Midstream Group (CMG) recently announced
its Gibraltar project -- an
approximately $275 million investment
in a 1 billion cubic feet per day dry gas header pipeline in
southwest Pennsylvania targeting
Utica dry gas. CMG expects this to
be the first of multiple phases and anticipates that the total
investment could be as much as $600
million.
- CPG's East Side Expansion project continues to advance and is
expected to be placed in service in the fourth quarter of 2015. The
approximately $275 million project
will provide 312 million cubic feet per day of additional capacity
for Marcellus Shale supplies to
reach growing -- and capacity constrained -- northeastern and
mid-Atlantic markets.
- Progress continues on several other major growth projects,
including CPG's approximately $1.8
billion Leach and Rayne
XPress projects, the $850
million WB XPress project and the $310 million Cameron Access project. Together,
these projects will create approximately 4 billion cubic feet per
day of new capacity commitments across the CPG system, including
access to LNG export facilities in Louisiana and Maryland.
- CPG is executing on the third year of the Columbia Gas
Transmission long-term system modernization program, which is
underpinned by a first of its kind FERC approved customer
settlement. CPG expects to make approximately $300 million in modernization investments during
2015. Recovery of approximately $320
million of investments made in 2014 began earlier this year.
Discussions with customers are underway regarding the possible
extension of the program. As those discussions progress, periodic
updates will be provided.
- CMG remains on schedule with the first phase of its
$120 million Washington County
Gathering project, as well as its $65
million Big Pine Expansion project -- both expected to be
placed in service before the end of 2015.
"Across all parts of the company, from the regulated interstate
pipelines to the growing midstream franchise and the system
modernization program, our team is highly focused on executing
CPG's transformational growth strategy," said Skaggs.
Three Months Ended June 30,
2015 Operating Results
CPG's net operating earnings from continuing operations
(non-GAAP) for the three months ended June
30, 2015 were $61.2 million
compared to $59.4 million for the
prior year period. Please refer to schedule 1 for a reconciliation
of net operating earnings to GAAP. A comparison of operating
results for the three months ended June 30,
2015 to the three months ended June
30, 2014 is summarized below. Earnings for the periods prior
to the date of CPG's separation from NiSource are derived from the
financial statements and accounting records of CPG's
predecessor.
Operating revenues, excluding the impact of trackers, increased
by $20.7 million, primarily due to
higher demand margin revenue as a result of growth projects placed
into service and new firm contracts.
Operating expenses, excluding the impact of trackers, increased
by $18.1 million, primarily due to
higher outside service costs, increased employee and administrative
costs and higher depreciation. These increases were partially
offset by increased gains on the conveyances of mineral
interests.
Equity earnings increased by $2.6
million, primarily due to certain Pennant facilities being
fully placed in-service.
Other deductions increased by $8.7
million, primarily due to an increase in interest expense
resulting from the issuance of long-term debt in May 2015, partially offset by the equity portion
of Allowance for Funds Used During Construction (AFUDC).
The effective tax rate of net operating earnings was 32.4%
compared to 36.8% for the same period last year. The 4.4% decrease
is primarily due to CPPL earnings for which the noncontrolling
public limited partners are directly responsible for the related
income taxes.
Six Months Ended June 30, 2015
Operating Results
CPG's net operating earnings from continuing operations
(non-GAAP) for the six months ended June 30,
2015 were $158.3 million
compared to $152.4 million for the
prior year period. Please refer to schedule 1 for a reconciliation
of net operating earnings to GAAP. A comparison of operating
results for the six months ended June 30,
2015 to the six months ended June 30,
2014 is summarized below. Earnings for the periods prior to
the date of CPG's separation from NiSource are derived from the
financial statements and accounting records of CPG's
predecessor.
Operating revenues, excluding the impact of trackers, increased
by $42.3 million, primarily due to
higher demand margin revenue as a result of growth projects placed
into service and new firm contracts. This increase was partially
offset by decreased mineral rights royalty revenue.
Operating expenses, excluding the impact of trackers, increased
by $41.7 million, primarily due to
higher employee and administrative costs, increased outside service
costs and higher depreciation. Additionally, there were decreased
gains on the conveyances of mineral interests and increased other
taxes.
Equity earnings increased by $8.2
million, primarily due to certain Pennant facilities being
fully placed in service and new compression assets being placed
into service at Millennium Pipeline.
Other deductions for the six months ended June 30, 2015 increased by $12.2 million compared to the same period in
2014. The increase was primarily due to an increase in interest
expense resulting from the issuance of long-term debt in
May 2015, partially offset by the
equity portion of AFUDC.
The effective tax rate of net operating earnings was 33.9%
compared to 37.3% for the same period last year. The 3.4% decrease
is primarily due to CPPL earnings for which the noncontrolling
public limited partners are directly responsible for the related
income taxes.
Conference Call
Columbia Pipeline Group and Columbia Pipeline Partners LP will
host a joint investor conference call at 10:00 a.m. ET (9:00 a.m.
CT) on Monday, August 3, 2015,
to review their second quarter 2015 financial results. All
interested parties may listen to the conference call live by
logging onto the Columbia Pipeline Group or Columbia Pipeline
Partners investor relations websites at http://investors.cpg.com or
http://investors.columbiapipelinepartners.com.
A replay of the call will be available beginning at 1:00 pm ET on August
3, through 11:59 p.m. ET on
August 10. To access the recording,
call (855) 859-2056 and enter conference ID 84781146. For
international participants to hear the replay, please dial (404)
537-3406 and enter the same pass code as above, 84781146. A
recording of the call also will be archived on the Columbia
Pipeline Group and Columbia Pipeline Partners websites.
Non-GAAP Financial Measures
Operating Earnings, Adjusted EBITDA and Partnership
Distributable Cash Flow
We define Operating Earnings as operating income adjusted for
transactions that are considered unusual, infrequent or not
representative of underlying trends. Examples of these transactions
include impairments and costs associated with CPG's separation from
NiSource. We define Adjusted EBITDA as net income before interest
expense, income taxes, and depreciation and amortization, plus
distributions of earnings received from equity investees, less
equity earnings in unconsolidated affiliates and other, net. In
addition, to the extent transactions occur that are considered
unusual, infrequent or not representative of underlying trends, we
will remove the effect of these items from Adjusted EBITDA.
Examples of these transactions include impairments and costs
associated with the separation. We define Distributable Cash Flow
as Adjusted EBITDA less net cash interest expense, maintenance
capital expenditures, gain on sale of assets and distributable cash
flow attributable to noncontrolling interest plus proceeds from
sale of assets, capital costs related to the separation and any
other known differences between cash and income.
Operating Earnings, Adjusted EBITDA and Distributable Cash Flow
are non-GAAP supplemental financial measures that management and
external users of our financial statements, such as industry
analysts, investors, lenders and rating agencies, may use to assess
the viability of acquisitions and other capital expenditure
projects and the returns on investment of various investment
opportunities.
We believe that the presentations of Operating Earnings,
Adjusted EBITDA and Distributable Cash Flow will provide useful
information to investors in assessing our financial condition and
results of operations. The GAAP measures most directly comparable
to Operating Earnings is Operating Income. The GAAP measures most
directly comparable to Adjusted EBITDA and Distributable Cash Flow
are Net Income and Net Cash Flows from Operating Activities. Our
non-GAAP financial measures of Operating Earnings, Adjusted EBITDA
and Distributable Cash Flow should not be considered as an
alternative to GAAP operating income, net income or net cash flows
from operating activities. Operating Earnings, Adjusted EBITDA and
Distributable Cash Flow have important limitations as analytical
tools because they exclude some but not all items that affect
operating income, net income and net cash flows from operating
activities. You should not consider Operating Earnings, Adjusted
EBITDA or Distributable Cash Flow in isolation or as a substitute
for analysis of our results as reported under GAAP. Because
Operating Earnings, Adjusted EBITDA or Distributable Cash Flow may
be defined differently by other companies in our industry, our
definitions of Operating Earnings, Adjusted EBITDA or Distributable
Cash Flow may not be comparable to similarly titled measures of
other companies, thereby diminishing their utility.
About Columbia Pipeline Group, Inc.
Columbia Pipeline Group, Inc. operates approximately 15,000
miles of strategically located interstate pipeline, gathering and
processing assets extending from New
York to the Gulf of Mexico,
including an extensive footprint in the Marcellus and Utica Shale
production areas. Columbia Pipeline Group also operates one
of the nation's largest underground natural gas storage systems.
Columbia Pipeline Group is listed on the NYSE under the ticker
symbol CPGX. Additional information can be found at
www.cpg.com.
Forward-Looking Statement
This release includes "forward-looking statements" within the
meaning of federal securities laws, which are statements other than
historical facts and that frequently use words such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"forecast," "intend," "may," "plan," "position," "should,"
"strategy," "target," "will" and similar words. All forward-looking
statements speak only as of the date of this release. Although CPG
believes that the plans, intentions and expectations reflected in
or suggested by the forward-looking statements are reasonable,
there is no assurance that these plans, intentions or expectations
will be achieved. Therefore, actual outcomes and results could
materially differ from what is expressed, implied or forecasted in
such statements. This release contains certain forward-looking
statements that are based on current plans and expectations and are
subject to various risks and uncertainties. CPG's business may be
influenced by many factors that are difficult to predict, involve
uncertainties that may materially affect actual results and are
often beyond CPG's control. These factors include, but are not
limited to, changes in general economic conditions; competitive
conditions in our industry; actions taken by third-party operators,
processors and transporters; the demand for natural gas storage and
transportation services; our ability to successfully implement our
business plan; our ability to complete internal growth projects on
time and on budget; the price and availability of debt and equity
financing; the availability and price of natural gas to the
consumer compared to the price of alternative and competing fuels;
competition from the same and alternative energy sources; energy
efficiency and technology trends; operating hazards and other risks
incidental to transporting, storing and gathering natural gas;
natural disasters, weather-related delays, casualty losses and
other matters beyond our control; interest rates; labor relations;
large customer defaults; changes in the availability and cost of
capital; changes in tax status; the effects of existing and future
laws and governmental regulations; and the effects of future
litigation. For a full discussion of these risks and uncertainties,
please refer to the "Risk Factors" section of CPG's Registration
Statement on Form 10 dated and filed with the Securities Exchange
Commission on February 6, 2015, as
amended and declared effective on June 3,
2015. All forward-looking statements included in this press
release are expressly qualified in their entirety by such
cautionary statements. CPG expressly disclaims any obligation to
update, amend or clarify any forward-looking statement to reflect
events, new information or circumstances occurring after the date
of this press release except as required by applicable law.
Columbia Pipeline
Group, Inc.
|
Consolidated Net
Operating Earnings (Non-GAAP)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
June
30,
|
(in
millions)
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Predecessor
|
|
|
|
Predecessor
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
revenues
|
|
|
|
|
$ 178.7
|
|
$ 153.5
|
|
$ 386.2
|
|
$ 332.7
|
Transportation
revenues-affiliated
|
|
|
|
|
17.1
|
|
16.9
|
|
43.7
|
|
42.6
|
Transportation
revenues-trackers
|
|
|
|
|
60.5
|
|
108.9
|
|
103.8
|
|
179.5
|
Storage
revenues
|
|
|
|
|
35.5
|
|
35.7
|
|
71.9
|
|
71.7
|
Storage
revenues-affiliated
|
|
|
|
|
12.9
|
|
13.1
|
|
26.1
|
|
26.7
|
Storage
revenues-trackers
|
|
|
|
|
0.7
|
|
0.4
|
|
1.0
|
|
0.8
|
Other
revenues
|
|
|
|
|
10.7
|
|
15.0
|
|
23.4
|
|
35.3
|
Total Operating
Revenues
|
|
|
|
|
316.1
|
|
343.5
|
|
656.1
|
|
689.3
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Operation and
maintenance
|
|
|
|
|
89.9
|
|
66.3
|
|
164.7
|
|
132.5
|
Operation and
maintenance-affiliated
|
|
|
|
|
24.9
|
|
29.3
|
|
52.9
|
|
57.8
|
Operation and
maintenance-trackers
|
|
|
|
|
61.2
|
|
109.3
|
|
104.8
|
|
180.3
|
Depreciation and
amortization
|
|
|
|
|
33.9
|
|
28.8
|
|
66.4
|
|
58.6
|
Gain on sale of
assets
|
|
|
|
|
(8.3)
|
|
(0.3)
|
|
(13.6)
|
|
(17.8)
|
Property and other
taxes
|
|
|
|
|
19.1
|
|
17.3
|
|
38.2
|
|
35.8
|
Total Operating
Expenses
|
|
|
|
|
220.7
|
|
250.7
|
|
413.4
|
|
447.2
|
Equity Earnings in
Unconsolidated Affiliates
|
|
|
|
|
13.7
|
|
11.1
|
|
29.1
|
|
20.9
|
Operating
Earnings
|
|
|
|
|
109.1
|
|
103.9
|
|
271.8
|
|
263.0
|
Other Income
(Deductions)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
(12.9)
|
|
-
|
|
(12.9)
|
|
-
|
Interest
expense-affiliated
|
|
|
|
|
(11.0)
|
|
(12.6)
|
|
(29.3)
|
|
(24.7)
|
Other, net
|
|
|
|
|
5.3
|
|
2.7
|
|
9.9
|
|
4.6
|
Total Other
Deductions, net
|
|
|
|
|
(18.6)
|
|
(9.9)
|
|
(32.3)
|
|
(20.1)
|
Operating Earnings
from Continuing Operations before Income Taxes
|
|
|
|
|
90.5
|
|
94.0
|
|
239.5
|
|
242.9
|
Income
Taxes
|
|
|
|
|
29.3
|
|
34.6
|
|
81.2
|
|
90.5
|
Net Operating
Earnings from Continuing Operations
|
|
|
|
|
61.2
|
|
59.4
|
|
158.3
|
|
152.4
|
Less: Net
Operating Earnings from Continuing Operations - Noncontrolling
Interest
|
|
9.0
|
|
-
|
|
16.1
|
|
-
|
Net Operating
Earnings from Continuing Operations - Controlling
Interest
|
|
|
|
52.2
|
|
59.4
|
|
142.2
|
|
152.4
|
GAAP
Adjustment
|
|
|
|
|
(1.1)
|
|
-
|
|
(1.1)
|
|
-
|
GAAP Income from
Continuing Operations - Controlling Interest
|
|
|
|
|
$ 51.1
|
|
$ 59.4
|
|
$ 141.1
|
|
$ 152.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
Schedule 1 -
Reconciliation of Net Operating Earnings to GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
June
30,
|
(in
millions)
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Predecessor
|
|
|
|
Predecessor
|
Net Operating
Earnings from Continuing Operations -
Controlling
Interest
|
|
|
|
$ 52.2
|
|
$ 59.4
|
|
$ 142.2
|
|
$ 152.4
|
Items excluded
from operating earnings
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Asset
impairment
|
|
|
|
|
(1.8)
|
|
-
|
|
(1.8)
|
|
-
|
Total items excluded
from operating earnings
|
|
|
|
|
(1.8)
|
|
-
|
|
(1.8)
|
|
-
|
Other
Deductions:
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect of above
items
|
|
|
|
|
0.7
|
|
-
|
|
0.7
|
|
-
|
Total items excluded
from net operating earnings
|
|
|
|
|
(1.1)
|
|
-
|
|
(1.1)
|
|
-
|
GAAP Income from
Continuing Operations -
Controlling
Interest
|
|
|
|
|
$ 51.1
|
|
$ 59.4
|
|
$ 141.1
|
|
$ 152.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
Schedule 2 - Non-GAAP
Reconciliation of Adjusted EBITDA and Distributable Cash
Flow
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
June
30,
|
(in
millions)
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Predecessor
|
|
|
|
Predecessor
|
Net
Income
|
|
|
|
|
$ 59.8
|
|
$ 59.1
|
|
$ 156.9
|
|
$ 151.9
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
12.9
|
|
-
|
|
12.9
|
|
-
|
Interest
expense-affiliated
|
|
|
|
|
11.0
|
|
12.6
|
|
29.3
|
|
24.7
|
Income
taxes
|
|
|
|
|
28.6
|
|
34.6
|
|
80.5
|
|
90.5
|
Depreciation and
amortization
|
|
|
|
|
33.9
|
|
28.8
|
|
66.4
|
|
58.6
|
Asset
impairment
|
|
|
|
|
1.8
|
|
-
|
|
1.8
|
|
-
|
Distributions of
earnings received from equity investees
|
|
|
|
|
9.6
|
|
5.3
|
|
27.9
|
|
12.9
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings in
unconsolidated affiliates
|
|
|
|
|
13.7
|
|
11.1
|
|
29.1
|
|
20.9
|
Other, net
|
|
|
|
|
5.3
|
|
2.7
|
|
9.9
|
|
4.6
|
Adjusted
EBITDA
|
|
|
|
|
$ 138.6
|
|
$ 126.6
|
|
$ 336.7
|
|
$ 313.1
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
11.4
|
|
|
|
21.1
|
|
|
Adjusted EBITDA
attributable to CPG
|
|
|
|
|
$ 127.2
|
|
|
|
$ 315.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Flows
from Operating Activities
|
|
|
|
|
$ 103.0
|
|
$ 133.8
|
|
$ 266.8
|
|
$ 337.4
|
Interest
expense
|
|
|
|
|
12.9
|
|
-
|
|
12.9
|
|
-
|
Interest
expense-affiliated
|
|
|
|
|
11.0
|
|
12.6
|
|
29.3
|
|
24.7
|
Current
taxes
|
|
|
|
|
32.8
|
|
16.0
|
|
48.6
|
|
42.9
|
Other adjustments to
operating cash flows
|
|
|
|
|
10.7
|
|
(2.1)
|
|
7.5
|
|
13.3
|
Changes in assets and
liabilities
|
|
|
|
|
(31.8)
|
|
(33.7)
|
|
(28.4)
|
|
(105.2)
|
Adjusted
EBITDA
|
|
|
|
|
$ 138.6
|
|
$ 126.6
|
|
$ 336.7
|
|
$ 313.1
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
11.4
|
|
|
|
21.1
|
|
|
Adjusted EBITDA
attributable to CPG
|
|
|
|
|
$ 127.2
|
|
|
|
$ 315.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
$ 138.6
|
|
|
|
$ 336.7
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Cash interest,
net
|
|
|
|
|
23.9
|
|
|
|
42.2
|
|
|
Maintenance capital
expenditures
|
|
|
|
|
89.4
|
|
|
|
110.0
|
|
|
Gain on sale of
assets
|
|
|
|
|
8.3
|
|
|
|
13.6
|
|
|
Net cash paid for
income taxes
|
|
|
|
|
32.8
|
|
|
|
48.6
|
|
|
Distributions to
public unitholders
|
|
|
|
|
4.9
|
|
|
|
4.9
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sales
of assets
|
|
|
|
|
7.1
|
|
|
|
17.3
|
|
|
Capital costs related
to spin-off
|
|
|
|
|
41.5
|
|
|
|
43.6
|
|
|
Distributable Cash
Flow
|
|
|
|
|
$ 27.9
|
|
|
|
$ 178.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
Statements of
Consolidated and Combined Operations (GAAP)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
June
30,
|
(in
millions)
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Predecessor
|
|
|
|
Predecessor
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
revenues
|
|
|
|
|
$ 237.8
|
|
$ 260.5
|
|
$ 486.2
|
|
$ 507.4
|
Transportation
revenues-affiliated
|
|
|
|
|
18.5
|
|
18.8
|
|
47.5
|
|
47.4
|
Storage
revenues
|
|
|
|
|
36.2
|
|
36.0
|
|
72.8
|
|
72.3
|
Storage
revenues-affiliated
|
|
|
|
|
12.9
|
|
13.2
|
|
26.2
|
|
26.9
|
Other
revenues
|
|
|
|
|
10.7
|
|
15.0
|
|
23.4
|
|
35.3
|
Total Operating
Revenues
|
|
|
|
|
316.1
|
|
343.5
|
|
656.1
|
|
689.3
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Operation and
maintenance
|
|
|
|
|
151.1
|
|
175.6
|
|
269.5
|
|
312.8
|
Operation and
maintenance-affiliated
|
|
|
|
|
24.9
|
|
29.3
|
|
52.9
|
|
57.8
|
Depreciation and
amortization
|
|
|
|
|
33.9
|
|
28.8
|
|
66.4
|
|
58.6
|
Gain on sale of
assets
|
|
|
|
|
(6.5)
|
|
(0.3)
|
|
(11.8)
|
|
(17.8)
|
Property and other
taxes
|
|
|
|
|
19.1
|
|
17.3
|
|
38.2
|
|
35.8
|
Total Operating
Expenses
|
|
|
|
|
222.5
|
|
250.7
|
|
415.2
|
|
447.2
|
Equity Earnings in
Unconsolidated Affiliates
|
|
|
|
|
13.7
|
|
11.1
|
|
29.1
|
|
20.9
|
Operating
Income
|
|
|
|
|
107.3
|
|
103.9
|
|
270.0
|
|
263.0
|
Other Income
(Deductions)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
(12.9)
|
|
-
|
|
(12.9)
|
|
-
|
Interest
expense-affiliated
|
|
|
|
|
(11.0)
|
|
(12.6)
|
|
(29.3)
|
|
(24.7)
|
Other, net
|
|
|
|
|
5.3
|
|
2.7
|
|
9.9
|
|
4.6
|
Total Other
Deductions, net
|
|
|
|
|
(18.6)
|
|
(9.9)
|
|
(32.3)
|
|
(20.1)
|
Income from
Continuing Operations before Income Taxes
|
|
|
|
|
88.7
|
|
94.0
|
|
237.7
|
|
242.9
|
Income
Taxes
|
|
|
|
|
28.6
|
|
34.6
|
|
80.5
|
|
90.5
|
Income from
Continuing Operations
|
|
|
|
|
$ 60.1
|
|
$ 59.4
|
|
$ 157.2
|
|
$ 152.4
|
Loss from
Discontinued Operations-net of taxes
|
|
|
|
|
(0.3)
|
|
(0.3)
|
|
(0.3)
|
|
(0.5)
|
Net
Income
|
|
|
|
|
$ 59.8
|
|
$ 59.1
|
|
$ 156.9
|
|
$ 151.9
|
Less: Net income
attributable to noncontrolling interest
|
|
9.0
|
|
|
|
16.1
|
|
|
Net income
attributable to CPG
|
|
|
|
|
$ 50.8
|
|
|
|
$ 140.8
|
|
|
Amounts
attributable to CPG:
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
|
|
$ 51.1
|
|
$ 59.4
|
|
$ 141.1
|
|
$ 152.4
|
Loss from
discontinued operations
|
|
|
|
|
(0.3)
|
|
(0.3)
|
|
(0.3)
|
|
(0.5)
|
Net income
attributable to CPG
|
|
|
|
|
$ 50.8
|
|
$ 59.1
|
|
$ 140.8
|
|
$ 151.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
Consolidated Balance
Sheets (GAAP)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
(in
millions)
|
|
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
136.8
|
|
$
0.5
|
Accounts receivable
(less reserve of $0.6 and $0.6, respectively)
|
|
|
|
|
123.6
|
|
149.4
|
Accounts
receivable-affiliated
|
|
|
|
|
678.8
|
|
180.0
|
Materials and
supplies, at average cost
|
|
|
|
|
28.2
|
|
24.9
|
Exchange gas
receivable
|
|
|
|
|
24.8
|
|
34.8
|
Regulatory
assets
|
|
|
|
|
5.3
|
|
6.1
|
Deferred property
taxes
|
|
|
|
|
32.3
|
|
48.9
|
Deferred income
taxes
|
|
|
|
|
91.8
|
|
60.0
|
Prepayments and
other
|
|
|
|
|
20.3
|
|
14.7
|
Total Current
Assets
|
|
|
|
|
1,141.9
|
|
519.3
|
Investments
|
|
|
|
|
|
|
|
Unconsolidated
affiliates
|
|
|
|
|
444.6
|
|
444.3
|
Other
investments
|
|
|
|
|
12.1
|
|
2.7
|
Total
Investments
|
|
|
|
|
456.7
|
|
447.0
|
Property, Plant
and Equipment
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
|
8,476.6
|
|
7,935.4
|
Accumulated
depreciation and amortization
|
|
|
|
|
(2,993.0)
|
|
(2,976.8)
|
Net Property, Plant
and Equipment
|
|
|
|
|
5,483.6
|
|
4,958.6
|
Other Noncurrent
Assets
|
|
|
|
|
|
|
|
Regulatory
assets
|
|
|
|
|
149.0
|
|
151.9
|
Goodwill
|
|
|
|
|
1,975.5
|
|
1,975.5
|
Postretirement and
postemployment benefits assets
|
|
|
|
|
110.8
|
|
90.0
|
Deferred charges and
others
|
|
|
|
|
39.4
|
|
15.2
|
Total Other
Noncurrent Assets
|
|
|
|
|
2,274.7
|
|
2,232.6
|
Total
Assets
|
|
|
|
|
$
9,356.9
|
|
$ 8,157.5
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
Consolidated Balance
Sheets (GAAP) (continued)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
(in
millions)
|
|
|
|
|
2015
|
|
2014
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
Current portion of
long-term debt-affiliated
|
|
|
|
|
$
-
|
|
$
115.9
|
Short-term
borrowings
|
|
|
|
|
20.0
|
|
-
|
Short-term
borrowings-affiliated
|
|
|
|
|
718.9
|
|
252.5
|
Accounts
payable
|
|
|
|
|
67.6
|
|
56.0
|
Accounts
payable-affiliated
|
|
|
|
|
29.6
|
|
53.6
|
Customer
deposits
|
|
|
|
|
41.8
|
|
13.4
|
Taxes
accrued
|
|
|
|
|
96.9
|
|
103.2
|
Exchange gas
payable
|
|
|
|
|
24.9
|
|
34.7
|
Deferred
revenue
|
|
|
|
|
13.7
|
|
22.5
|
Regulatory
liabilities
|
|
|
|
|
9.0
|
|
1.3
|
Legal and
environmental
|
|
|
|
|
2.1
|
|
2.0
|
Accrued capital
expenditures
|
|
|
|
|
146.3
|
|
61.1
|
Other
accruals
|
|
|
|
|
92.7
|
|
68.0
|
Total Current
Liabilities
|
|
|
|
|
1,263.5
|
|
784.2
|
Noncurrent
Liabilities
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
|
2,745.9
|
|
-
|
Long-term
debt-affiliated
|
|
|
|
|
-
|
|
1,472.8
|
Deferred income
taxes
|
|
|
|
|
1,326.2
|
|
1,255.7
|
Accrued liability for
postretirement and postemployment benefits
|
|
|
|
|
46.7
|
|
53.0
|
Regulatory
liabilities
|
|
|
|
|
304.1
|
|
295.7
|
Asset retirement
obligations
|
|
|
|
|
24.2
|
|
23.2
|
Other noncurrent
liabilities
|
|
|
|
|
85.5
|
|
96.6
|
Total Noncurrent
Liabilities
|
|
|
|
|
4,532.6
|
|
3,197.0
|
Total
Liabilities
|
|
|
|
|
5,796.1
|
|
3,981.2
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Net parent
investment
|
|
|
|
|
2,635.0
|
|
4,210.8
|
Accumulated other
comprehensive loss
|
|
|
|
|
(24.5)
|
|
(34.5)
|
Total CPG
Equity
|
|
|
|
|
2,610.5
|
|
4,176.3
|
Noncontrolling
Interest
|
|
|
|
|
950.3
|
|
-
|
Total
Equity
|
|
|
|
|
3,560.8
|
|
4,176.3
|
Total Liabilities
and Equity
|
|
|
|
|
$
9,356.9
|
|
$ 8,157.5
|
|
|
|
|
|
|
|
|
Columbia Pipeline
Group, Inc.
|
Statements of
Consolidated and Combined Cash Flows (GAAP)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, (in millions)
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Predecessor
|
Operating
Activities
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
$
156.9
|
|
$
151.9
|
Adjustments to
Reconcile Net Income to Net Cash from Continuing
Operations:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
66.4
|
|
58.6
|
Deferred income taxes
and investment tax credits
|
|
|
|
|
31.9
|
|
47.6
|
Deferred
revenue
|
|
|
|
|
(0.1)
|
|
2.0
|
Equity-based
compensation expense and 401(k) profit sharing
contribution
|
|
|
|
3.9
|
|
1.7
|
Gain on sale of
assets
|
|
|
|
|
(11.8)
|
|
(17.8)
|
Income from
unconsolidated affiliates
|
|
|
|
|
(29.1)
|
|
(20.9)
|
Loss from
discontinued operations-net of taxes
|
|
|
|
|
0.3
|
|
0.5
|
Amortization of debt
related costs
|
|
|
|
|
0.6
|
|
-
|
AFUDC
equity
|
|
|
|
|
(8.5)
|
|
(4.3)
|
Distributions of
earnings received from equity investees
|
|
|
|
|
27.9
|
|
12.9
|
Changes in Assets and
Liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
|
13.9
|
|
(25.2)
|
Accounts
receivable-affiliated
|
|
|
|
|
1.7
|
|
19.1
|
Accounts
payable
|
|
|
|
|
2.3
|
|
24.3
|
Accounts
payable-affiliated
|
|
|
|
|
(26.9)
|
|
(17.7)
|
Customer
deposits
|
|
|
|
|
1.0
|
|
75.2
|
Taxes
accrued
|
|
|
|
|
(0.4)
|
|
(9.4)
|
Exchange gas
receivable/payable
|
|
|
|
|
0.2
|
|
4.7
|
Other
accruals
|
|
|
|
|
13.5
|
|
4.3
|
Prepayments and other
current assets
|
|
|
|
|
7.8
|
|
20.5
|
Regulatory
assets/liabilities
|
|
|
|
|
25.5
|
|
25.6
|
Postretirement and
postemployment benefits
|
|
|
|
|
(15.5)
|
|
(11.1)
|
Deferred charges and
other noncurrent assets
|
|
|
|
|
(2.2)
|
|
(3.3)
|
Other noncurrent
liabilities
|
|
|
|
|
7.6
|
|
(0.8)
|
Net Operating
Activities from Continuing Operations
|
|
|
|
|
266.9
|
|
338.4
|
Net Operating
Activities from Discontinued Operations
|
|
|
|
|
(0.1)
|
|
(1.0)
|
Net Cash Flows
from Operating Activities
|
|
|
|
|
266.8
|
|
337.4
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
(470.2)
|
|
(296.6)
|
Insurance
recoveries
|
|
|
|
|
2.1
|
|
6.8
|
Change in short-term
lendings-affiliated
|
|
|
|
|
(500.2)
|
|
(10.4)
|
Proceeds from
disposition of assets
|
|
|
|
|
17.3
|
|
4.9
|
Distributions from
(contributions to) equity investees
|
|
|
|
|
2.2
|
|
(54.8)
|
Other investing
activities
|
|
|
|
|
(17.0)
|
|
(3.4)
|
Net Cash Flows
used for Investing Activities
|
|
|
|
|
(965.8)
|
|
(353.5)
|
Financing
Activities
|
|
|
|
|
|
|
|
Change in short-term
borrowings
|
|
|
|
|
20.0
|
|
-
|
Change in short-term
borrowings-affiliated
|
|
|
|
|
466.3
|
|
(312.6)
|
Issuance of long-term
debt
|
|
|
|
|
2,745.9
|
|
-
|
Debt related
costs
|
|
|
|
|
(22.5)
|
|
-
|
Issuance of long-term
debt-affiliated
|
|
|
|
|
1,217.3
|
|
328.4
|
Payments of long-term
debt-affiliated, including current portion
|
|
|
|
|
(2,806.0)
|
|
-
|
Proceeds from the
issuance of common units, net of offering costs
|
|
|
|
|
1,168.4
|
|
-
|
Distribution of IPO
proceeds to parent
|
|
|
|
|
(500.0)
|
|
-
|
Distribution to
parent
|
|
|
|
|
(1,450.0)
|
|
-
|
Distribution to
noncontrolling interest
|
|
|
|
|
(4.9)
|
|
-
|
Transfer from
parent
|
|
|
|
|
0.8
|
|
-
|
Net Cash Flows
from Financing Activities
|
|
|
|
|
835.3
|
|
15.8
|
Change in cash and
cash equivalents
|
|
|
|
|
136.3
|
|
(0.3)
|
Cash and cash
equivalents at beginning of period
|
|
|
|
|
0.5
|
|
0.4
|
Cash and Cash
Equivalents at End of Period
|
|
|
|
|
$
136.8
|
|
$
0.1
|
|
|
|
|
|
|
|
|
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SOURCE Columbia Pipeline Group, Inc.