Boardwalk Partners announces 168 percent increase in net income

Boardwalk Pipeline Partners, LP (NYSE: BWP) on July 26 announced its results for the second quarter ended June 30, which included the following items:
- Operating revenues of $256.7 million for the quarter and $557.2 million for the six months ended June 30, 2010, a 27 percent and 31 percent increase from $201.4 million and $424.8 million in the comparable 2009 periods;
- Net income of $54.4 million for the quarter and $144.7 million for the six months ended June 30, 2010, a 168 percent and 100 percent increase from $20.3 million and $72.3 million in the comparable 2009 periods; and
- Earnings before interest, taxes, depreciation and amortization (EBITDA) of $145.7 million for the quarter and $326.6 million for the six months ended June 30, 2010, a 39 percent and 42 percent increase from $104.8 million and $230.0 million in the comparable 2009 periods.
- Distributable cash flow of $109.8 million for the quarter and $243.7 million for the six months ended June 30, a 60 percent and 63 percent increase from $68.7 million and $149.7 million in the comparable 2009 periods.
Operating results for the second quarter and six months were primarily driven by:
- Higher gas transportation revenues from expansion projects, partly offset by lower interruptible and short-term firm transportation revenues due to reduced price spreads between locations on the pipeline systems. The 2009 gas transportation revenues, excluding fuel, from expansion projects were lower than expected due to operating those pipelines at reduced pressures and temporary shutdowns following the discovery and remediation of anomalies in certain joints of pipe;
- Higher operating costs and expenses due to higher depreciation and property taxes resulting from an increase in asset base due to expansion assets being placed into service and higher operations and maintenance expense due to increased maintenance activities; and
- Higher interest expense as a result of increased debt levels in 2010. In addition, interest expense for the six months ended June 30, 2010, was higher due to lower capitalized interest associated with expansion projects being placed into service.