Commission file
number: 01-32665
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BOARDWALK
PIPELINE PARTNERS, LP
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||
(Exact
name of registrant as specified in its charter)
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DELAWARE
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(State
or other jurisdiction of incorporation or organization)
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20-3265614
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(I.R.S.
Employer Identification No.)
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9
Greenway Plaza, Suite 2800
Houston,
Texas 77046
(866)
913-2122
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(Address
and Telephone Number of Registrant’s Principal Executive
Office)
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Securities
registered pursuant to Section 12(b) of the Act:
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Title
of each class
|
Name
of each exchange on which registered
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Common
Units Representing Limited Partner Interests
|
New
York Stock Exchange
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Securities registered pursuant
to Section 12(g) of the Act: NONE
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Pipeline
|
Miles
of Pipeline
|
Peak-day
Delivery Capacity
|
Working
Gas Storage Capacity
|
Average
Daily Throughput
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||||||||||||
(Bcf/d)
|
(Bcf)
|
(Bcf/d)
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||||||||||||||
Gulf
Crossing
|
360 | 1.4 | (1) | - | 0.7 | (2) | ||||||||||
Gulf
South
|
7,700 | 6.2 | 83.0 | 3.1 | (2) | |||||||||||
Texas
Gas
|
6,110 | 4.3 | 80.0 | 2.8 | (2) | |||||||||||
(1) The
designated peak-day transmission capacity is expected to increase to 1.7
Bcf per day from the addition of compression, which is expected to be
placed in service in the first quarter 2010.
(2) The
average daily throughput was adversely impacted because we operated the
pipeline expansion projects at reduced operating pressures and shut down
segments of the pipelines for periods of time to remediate the pipe
anomalies. Expansion and
Growth Projects, in Item 7 of this Report, contains more
information regarding the pipe anomalies and related
remediation.
|
·
|
the
Clean Air Act and analogous state laws which impose obligations related to
air emissions, including, in the case of the Clean Air Act, greenhouse gas
emissions, which we will be required to report to the Environmental
Protection Agency (EPA) beginning in March
2011;
|
·
|
the
Water Pollution Control Act, commonly referred to as the Clean Water Act,
and analogous state laws which regulate discharge of wastewaters from our
facilities into state and federal
waters;
|
·
|
the
Comprehensive Environmental Response, Compensation and Liability Act,
commonly referred to as CERCLA, or the Superfund law, and analogous state
laws which regulate the cleanup of hazardous substances that may have been
released at properties currently or previously owned or operated by us or
locations to which we have sent wastes for
disposal;
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·
|
the
Resource Conservation and Recovery Act, and analogous state laws which
impose requirements for the handling and discharge of solid and hazardous
waste from our facilities.
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·
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existing
and new competition to deliver natural gas to our markets;
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·
|
development
of new supplies located near key
markets;
|
·
|
the
growth in demand for natural gas in our markets;
|
·
|
whether
the market will continue to support long-term
contracts;
|
·
|
the
current price differentials, or market price spreads between various
receipt and delivery points on our pipelines; and
|
·
|
the
effects of state regulation on customer contracting practices.
|
·
|
delays
in obtaining regulatory approvals, including delays in receiving
authorization from PHMSA to operate at higher than normal operating
pressures under special permits;
|
·
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difficult
construction conditions, including adverse weather
conditions;
|
·
|
delays
in obtaining, or high demand for, key materials;
and
|
·
|
shortages
of qualified labor and escalating costs of labor and materials resulting
from the high level of construction activity in the pipeline
industry.
|
·
|
worldwide
economic conditions;
|
·
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weather
conditions, seasonal trends and hurricane disruptions;
|
·
|
the
relationship between the available supplies and the demand for natural
gas;
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·
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the
availability of LNG;
|
·
|
the
availability of adequate transportation
capacity;
|
·
|
storage
inventory levels;
|
·
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the
price and availability of other forms of energy;
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·
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the
effect of energy conservation measures;
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·
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the
nature and extent of, and changes in, governmental regulation, for example
greenhouse gas legislation and taxation; and
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·
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the
anticipated future prices of natural gas, LNG and other
commodities.
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·
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operating
terms and conditions of service;
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·
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the
types of services we may offer to our customers;
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·
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construction
of new facilities;
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·
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creation,
extension or abandonment of services or
facilities;
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·
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accounts
and records; and
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·
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relationships
with certain types of affiliated companies involved in the natural gas
business.
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·
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BPHC
and its affiliates may engage in competition with
us.
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·
|
Neither
our partnership agreement nor any other agreement requires BPHC or its
affiliates (other than our general partner) to pursue a business strategy
that favors us. Directors and officers of BPHC and its affiliates have a
fiduciary duty to make decisions in the best interest of BPHC
shareholders, which may be contrary to our
interests.
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·
|
Our
general partner is allowed to take into account the interests of parties
other than us, such as BPHC and its affiliates, in resolving conflicts of
interest, which has the effect of limiting its fiduciary duty to our
unitholders.
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·
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Some
officers of our general partner who provide services to us may devote time
to affiliates of our general partner and may be compensated for services
rendered to such affiliates.
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·
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Our
partnership agreement limits the liability and reduces the fiduciary
duties of our general partner and the remedies available to our
unitholders for actions that, without these limitations, might constitute
breaches of fiduciary duty. By purchasing common units, unitholders are
consenting to some actions and conflicts of interest that might otherwise
constitute a breach of fiduciary or other duties under applicable
law.
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·
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Our
general partner determines the amount and timing of asset purchases and
sales, borrowings, repayments of indebtedness, issuances of additional
partnership securities and cash reserves, each of which can affect the
amount of cash that is available for distribution to our
unitholders.
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·
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Our
general partner determines the amount and timing of any capital
expenditures and whether an expenditure is for maintenance capital, which
reduces operating surplus, or a capital improvement expenditure, which
does not. Such determination can affect the amount of cash that is
distributed to our unitholders.
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·
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In
some instances, our general partner may cause us to borrow funds in order
to permit the payment of cash distributions, even if the purpose or effect
of the borrowing is to make incentive
distributions.
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·
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Our
general partner determines which costs, including allocated overhead,
incurred by it and its affiliates are reimbursable by
us.
|
·
|
Our
partnership agreement does not restrict our general partner from causing
us to pay it or its affiliates for any services rendered on terms that are
fair and reasonable to us or entering into additional contractual
arrangements with any of these entities on our behalf, and provides that
reimbursement to Loews for amounts allocable to us consistent with
accounting and allocation methodologies generally permitted by FERC for
rate-making purposes and past business practices is deemed fair and
reasonable to us.
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·
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Our
general partner controls the enforcement of obligations owed to us by it
and its affiliates.
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·
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Our
general partner intends to limit its liability regarding our contractual
obligations.
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·
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Our
general partner decides whether to retain separate counsel, accountants or
others to perform services for us.
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·
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Our
general partner may exercise its rights to call and purchase (1) all
of our common units if, at any time, it and its affiliates own more than
80% of the outstanding common units or (2) all of our equity
securities (including common units), if it and its affiliates own more
than 50% in the aggregate of the outstanding common units and any other
classes of equity securities and it receives an opinion of outside legal
counsel to the effect that our being a pass-through entity for tax
purposes has or is reasonably likely to have a material adverse effect on
the maximum applicable rates we can charge our
customers.
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·
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permits
our general partner to make a number of decisions in its individual
capacity, as opposed to its capacity as our general partner. This entitles
our general partner to consider only the interests and factors that it
desires, and it has no duty or obligation to give any consideration to any
interest of, or factors affecting us, our affiliates or any limited
partner. Decisions made by our general partner in its individual capacity
will be made by a majority of the owners of our general partner, and not
by the board of directors of our general partner. Examples of these kinds
of decisions include the exercise of its call rights, its voting rights
with respect to the units it owns and its registration rights and the
determination of whether to consent to any merger or consolidation of the
partnership;
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·
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provides
that our general partner shall not have any liability to us or our
unitholders for decisions made in its capacity as general partner so long
as it acted in good faith, meaning it believed that the decisions were in
the best interests of the partnership;
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·
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generally
provides that affiliate transactions and resolutions of conflicts of
interest not approved by the conflicts committee of the board of directors
of our general partner and not involving a vote of unitholders must be on
terms no less favorable to us than those generally provided to or
available from unrelated third parties or be “fair and reasonable” to us
and that, in determining whether a transaction or resolution is “fair and
reasonable,” our general partner may consider the totality of the
relationships between the parties involved, including other transactions
that may be particularly advantageous or beneficial to us; and
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·
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provides
that our general partner and its officers and directors will not be liable
for monetary damages to us, our limited partners or assignees for any acts
or omissions unless there has been a final and non-appealable judgment
entered by a court of competent jurisdiction determining that the general
partner or those other persons acted in bad faith or engaged in fraud or
willful misconduct.
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Sales
Price Range per
Common
Unit
|
Cash
Distributions
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|||||||||||
High
|
Low
|
per
Common Unit
(1)
(2)
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||||||||||
Year
ended December 31, 2009:
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||||||||||||
Fourth
quarter
|
$ | 30.77 | $ | 24.01 | $ | 0.500 | ||||||
Third
quarter
|
25.30 | 21.85 | 0.495 | |||||||||
Second
quarter
|
23.67 | 19.43 | 0.490 | |||||||||
First
quarter
|
23.67 | 17.82 | 0.485 | |||||||||
Year
ended December 31, 2008:
|
||||||||||||
Fourth
quarter
|
$ | 25.97 | $ | 14.00 | $ | 0.480 | ||||||
Third
quarter
|
24.96 | 17.11 | 0.475 | |||||||||
Second
quarter
|
28.65 | 23.34 | 0.470 | |||||||||
First
quarter
|
32.25 | 21.24 | 0.465 |
(1)
|
Represents
cash distributions attributable to the quarter and declared and paid to
limited partner unitholders within 60 days after quarter end.
|
(2)
|
We
also paid cash distributions to our general partner with respect to its 2%
general partner interest and, with respect to that portion of the
distribution in excess of $0.4025 per unit, its IDRs described below. The
class B unitholder participates in distributions on a pari passu basis
with our common units up to $0.30 per quarter, beginning with the
distribution attributable to the third quarter 2008. The class B units do
not participate in quarterly distributions above $0.30 per
unit.
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Total
Quarterly Distribution
|
Marginal Percentage Interest in
Distributions
|
||||
Target
Amount
|
Limited
Partner
Unitholders
(1)
|
General Partner
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||||
First
Target Distribution
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|
up to $0.4025
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98%
|
2%
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Second
Target Distribution
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|
above $0.4025 up to $0.4375
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85%
|
15%
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Third
Target Distribution
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above
$0.4375 up to $0.5250
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75%
|
25%
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Thereafter
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above
$0.5250
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50%
|
50%
|
(1)
|
Distributions
to our limited partner unitholders include distributions on behalf of our
class B units. The class B units share in quarterly distributions of
available cash from operating surplus on a pari passu basis with our
common units, until each common unit and class B unit has received a
quarterly distribution of $0.30. The class B units do not participate in
quarterly distributions above $0.30 per
unit.
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Boardwalk
Pipeline Partners, LP
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||||||||||||||||||||
For
the Year Ended December 31,
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||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
Total
operating revenues
|
$ | 909.2 | $ | 784.8 | $ | 643.2 | $ | 607.6 | $ | 560.5 | ||||||||||
Net
income
|
162.7 | 294.0 | 227.7 | 197.6 | 100.9 | |||||||||||||||
Total
assets
|
6,895.8 | 6,721.6 | 4,122.0 | 2,909.2 | 2,437.9 | |||||||||||||||
Long-term
debt
|
3,100.0 | 2,889.4 | 1,847.9 | 1,350.9 | 1,101.3 | |||||||||||||||
Net
income per common unit (1)
|
0.88 | 2.09 | 1.91 | 1.90 | (2 | ) | ||||||||||||||
Net
income per subordinated unit (1)
|
- | 1.68 | 1.86 | 1.88 | (2 | ) | ||||||||||||||
Net
income per class B unit (1)
|
0.08 | 0.60 | - | - | - | |||||||||||||||
Distributions
per common unit (3)
|
1.95 | 1.87 | 1.74 | 1.32 | (4) | - | ||||||||||||||
Distributions
per class B unit
|
1.20 | 0.30 | - | - | - | |||||||||||||||
EBITDA
(5)
|
498.0 | 474.6 | 349.8 | 331.5 | 289.0 |
(1)
|
In
the first quarter 2009, we changed the method used in computing our net
income per unit due to changes in GAAP. Net income per unit has been
retrospectively adjusted for all prior periods presented. Note 11 in Item
8 contains further information.
|
(2)
|
Our
net income was $36.0 million, or $0.35 per common and subordinated unit,
for the period from November 15, 2005, the closing date of our initial
public offering, through December 31,
2005.
|
(3)
|
Distributions
per subordinated unit were the same as the distributions per common unit
for the years ended December 31, 2005 through
2008.
|
(4)
|
The
first quarter 2006 distribution represented a prorated portion of the
$0.35 per unit “minimum quarterly distribution” (as defined in our
partnership agreement) for the period November 15, 2005 through December
31, 2005.
|
(5)
|
Non-GAAP
Financial Measure
|
·
|
our
financial performance without regard to financing methods, capital
structure or historical cost
basis;
|
·
|
our
ability to generate cash sufficient to pay interest on our indebtedness
and to make distributions to our
partners;
|
·
|
our
operating performance and return on invested capital as compared to those
of other companies in the natural gas transportation, gathering and
storage business, without regard to financing methods and capital
structure; and
|
·
|
the
viability of acquisitions and capital expenditure
projects.
|
Boardwalk
Pipeline Partners, LP
|
||||||||||||||||||||
For
the Year Ended December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
Net
income
|
$ | 162.7 | $ | 294.0 | $ | 227.7 | $ | 197.6 | $ | 100.9 | ||||||||||
Income
taxes and charge-in-lieu of income taxes
|
0.3 | 1.0 | 0.8 | 0.2 | 49.5 | |||||||||||||||
Elimination
of cumulative deferred taxes
|
- | - | - | - | 10.1 | |||||||||||||||
Depreciation
and amortization
|
203.1 | 124.8 | 81.8 | 75.8 | 72.1 | |||||||||||||||
Interest
expense
|
132.1 | 57.7 | 61.0 | 62.1 | 60.1 | |||||||||||||||
Interest
income
|
(0.2 | ) | (2.9 | ) | (21.5 | ) | (4.2 | ) | (3.7 | ) | ||||||||||
EBITDA
|
$ | 498.0 | $ | 474.6 | $ | 349.8 | $ | 331.5 | $ | 289.0 |
Estimated
Total Capital
Expenditures
(1)
|
Cash
Invested through
December
31, 2009
|
|||||||
Southeast
Expansion
|
$ | 755 | $ | 753.9 | ||||
Gulf
Crossing Project
|
1,765 | 1,648.5 | ||||||
Fayetteville
and Greenville Laterals
|
1,215 | 1,000.3 | ||||||
Pipe
Remediation (2)
|
130 | 82.0 | ||||||
Haynesville
Project
|
185 | 15.6 | ||||||
Clarence
Compression
|
30 | - | ||||||
Total
|
$ | 4,080 | $ | 3,500.3 |
(1)
|
Our
estimated total capital expenditures are based on internally developed
financial models and timelines. Factors in the estimates include, but are
not limited to, those related to pipeline costs based on mileage, size and
type of pipe, materials and construction and engineering
costs.
|
(2)
|
This
estimate represents the cost of remediating pipe anomalies on our East
Texas Pipeline, our Southeast Expansion, our Gulf Crossing Project and our
Fayetteville and Greenville
Laterals.
|
Month
of Issuance
|
Net
Cash Proceeds Received
|
Number
of Units
|
Issue
Price
|
Type
of Issuance
|
||||||
August
|
$
|
183.1
(1)
|
8.1
|
$
|
23.00
|
Public
offering of common units
|
||||
August
|
346.7
|
N/A
|
N/A
|
Public
offering of debt securities
|
||||||
June
|
150.0
(2)
|
6.7
|
21.99
|
Private
placement of common units to BPHC
|
||||||
May
|
200.0
|
N/A
|
N/A
|
Subordinated
loan with BPHC
|
(1)
|
Includes
a $3.8 million contribution received from our general partner to maintain
its 2% general partner interest.
|
(2)
|
Includes
a $3.0 million contribution received from our general partner to maintain
its 2% general partner interest.
|
Total
|
Less
than 1 Year
|
1-3
Years
|
4-5
Years
|
More
than 5 Years
|
||||||||||||||||
Principal
payments on long-term debt (1)
|
$ | 3,113.5 | $ | - | $ | 878.5 | $ | 250.0 | $ | 1,985.0 | ||||||||||
Interest
on long-term debt (2)
|
1,031.1 | 147.0 | 291.2 | 228.0 | 364.9 | |||||||||||||||
Capital
commitments (3)
|
47.8 | 47.7 | 0.1 | - | - | |||||||||||||||
Pipeline
capacity agreements (4)
|
79.8 | 12.4 | 20.6 | 20.6 | 26.2 | |||||||||||||||
Operating
lease commitments
|
24.0 | 4.1 | 6.5 | 5.9 | 7.5 | |||||||||||||||
Total
|
$ | 4,296.2 | $ | 211.2 | $ | 1,196.9 | $ | 504.5 | $ | 2,383.6 |
(1)
|
This
includes our senior unsecured notes, having maturity dates from 2012 to
2027, $553.5 million of loans outstanding under our revolving credit
facility, having a maturity date of June 29, 2012, and our Subordinated
Loans, which mature initially on December 29, 2012. The revolving credit
facility and Subordinated Loans are extendable by us on the same terms for
an additional year.
|
(2)
|
Interest
obligations represent interest due on our senior unsecured notes at fixed
rates. Future interest obligations under our revolving credit facility are
uncertain, due to the variable interest rate and fluctuating balances.
Based on a 0.48% weighted-average interest rate on amounts outstanding
under our revolving credit facility as of December 31, 2009, $2.7 million
and $4.0 million would be due under the credit facility in less than one
year and 1-3 years.
|
(3)
|
Capital
commitments represent binding commitments under purchase orders for
materials ordered but not received and firm commitments under binding
construction service agreements existing at December 31, 2009. The amounts
shown do not reflect commitments we have made after December 31, 2009. For
information on these projects, see Expansion and Growth Capital
Expenditures.
|
(4)
|
The
amounts shown are associated with various pipeline capacity agreements on
third-party pipelines that allow our operating subsidiaries to transport
gas to off-system markets on behalf of our
customers.
|
·
|
our
ability to operate our East Texas Pipeline, Southeast Expansion, Gulf
Crossing Pipeline and Fayetteville Lateral at higher than normal operating
pressures;
|
·
|
the
timing, cost, scope and financial performance of our recent and future
expansion and growth projects;
|
·
|
our
ability to maintain or replace expiring gas transportation and storage
contracts at favorable rates;
|
·
|
volatility
or disruptions in the capital or financial
markets;
|
·
|
the
impact of FERC rate-making policies and actions on the services we offer
and the rates we charge and our ability to recover the full cost of
operating our pipelines, including earning a reasonable
return;
|
·
|
the
impact of laws and regulations, including changes to laws and regulations,
on our business, including our costs, liabilities and
revenues;
|
·
|
operational
hazards, litigation and unforeseen interruptions for which we may not have
adequate or appropriate insurance
coverage;
|
·
|
the
cost of insuring our assets may increase
dramatically;
|
·
|
our
ability to access new sources of natural gas and the impact on us of any
future decreases in supplies of natural gas in our supply
areas;
|
·
|
the
impact of changes in the supply of and demand for natural gas, including
as a result of commodity price changes, the impact on our system
throughput and revenues;
|
·
|
the
impact of new pipelines or new gas supply sources being located near the
markets served by our pipelines on the pricing of our services and our
ability to re-contract with
customers.
|
2009
|
2008
|
|||||||
Carrying
value of fixed-rate debt
|
$ | 2,546.5 | $ | 2,097.4 | ||||
Fair
value of fixed-rate debt
|
$ | 2,615.1 | $ | 1,863.3 | ||||
100
basis point increase in interest rates and resulting debt
decrease
|
$ | 130.7 | $ | 117.1 | ||||
100
basis point decrease in interest rates and resulting debt
increase
|
$ | 140.3 | $ | 126.1 | ||||
Weighted-average
interest rate
|
5.97 | % | 5.89 | % |
December
31,
|
||||||||
ASSETS
|
2009
|
2008
|
||||||
Current
Assets:
|
||||||||
Cash
and cash equivalents
|
$ | 45.8 | $ | 137.7 | ||||
Short-term
investments
|
- | 175.0 | ||||||
Receivables:
|
||||||||
Trade,
net
|
95.5 | 67.3 | ||||||
Other
|
13.5 | 18.0 | ||||||
Gas
transportation receivables
|
7.9 | 13.5 | ||||||
Costs
recoverable from customers
|
6.0 | 5.4 | ||||||
Gas
stored underground
|
2.1 | 0.2 | ||||||
Prepayments
|
10.1 | 17.3 | ||||||
Other
current assets
|
10.0 | 17.4 | ||||||
Total
current assets
|
190.9 | 451.8 | ||||||
Property,
Plant and Equipment:
|
||||||||
Natural
gas transmission plant
|
6,406.7 | 3,871.0 | ||||||
Other
natural gas plant
|
217.1 | 215.2 | ||||||
Construction
work in progress
|
231.4 | 2,196.4 | ||||||
Property,
plant and equipment, gross
|
6,855.2 | 6,282.6 | ||||||
Less—accumulated
depreciation and amortization
|
577.3 | 382.4 | ||||||
Property,
plant and equipment, net
|
6,277.9 | 5,900.2 | ||||||
Other
Assets:
|
||||||||
Goodwill
|
163.5 | 163.5 | ||||||
Gas
stored underground
|
133.7 | 124.8 | ||||||
Costs
recoverable from customers
|
16.1 | 15.4 | ||||||
Other
|
113.7 | 65.9 | ||||||
Total
other assets
|
427.0 | 369.6 | ||||||
Total
Assets
|
$ | 6,895.8 | $ | 6,721.6 |
December
31,
|
||||||||
LIABILITIES
AND PARTNERS’ CAPITAL
|
2009
|
2008
|
||||||
Current
Liabilities:
|
||||||||
Payables:
|
||||||||
Trade
|
$ | 58.4 | $ | 216.4 | ||||
Affiliates
|
8.6 | 1.8 | ||||||
Other
|
17.8 | 7.4 | ||||||
Gas
transportation payables
|
5.0 | 11.6 | ||||||
Accrued
taxes, other
|
41.2 | 35.2 | ||||||
Accrued
interest
|
41.8 | 40.1 | ||||||
Accrued
payroll and employee benefits
|
16.4 | 16.3 | ||||||
Construction
retainage
|
21.0 | 76.3 | ||||||
Deferred
income
|
20.9 | 1.8 | ||||||
Other
current liabilities
|
19.8 | 27.1 | ||||||
Total
current liabilities
|
250.9 | 434.0 | ||||||
Long–term
debt
|
3,000.0 | 2,889.4 | ||||||
Long–term
debt – affiliate
|
100.0 | - | ||||||
Total
long-term debt
|
3,100.0 | 2,889.4 | ||||||
Other
Liabilities and Deferred Credits:
|
||||||||
Pension
liability
|
31.6 | 35.7 | ||||||
Asset
retirement obligation
|
18.0 | 18.0 | ||||||
Provision
for other asset retirement
|
47.0 | 45.6 | ||||||
Payable
to affiliate
|
20.6 | 20.6 | ||||||
Other
|
63.5 | 33.3 | ||||||
Total
other liabilities and deferred credits
|
180.7 | 153.2 | ||||||
Commitments
and Contingencies
|
||||||||
Partners’
Capital:
|
||||||||
Common
units – 169.7 and 154.9 million units issued and outstanding as of
December 31, 2009 and 2008
|
2,640.5 | 2,504.8 | ||||||
Class
B units – 22.9 million units issued and outstanding as of December 31,
2009 and 2008
|
683.6 | 692.8 | ||||||
General
partner
|
65.5 | 62.9 | ||||||
Accumulated
other comprehensive loss, net of tax
|
(25.4 | ) | (15.5 | ) | ||||
Total
partners’ capital
|
3,364.2 | 3,245.0 | ||||||
Total
Liabilities and Partners’ Capital
|
$ | 6,895.8 | $ | 6,721.6 |
For
the Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Operating
Revenues:
|
||||||||||||
Gas
transportation
|
$ | 794.9 | $ | 698.2 | $ | 529.7 | ||||||
Parking
and lending
|
34.9 | 16.3 | 42.8 | |||||||||
Gas
storage
|
57.6 | 51.5 | 39.4 | |||||||||
Other
|
21.8 | 18.8 | 31.3 | |||||||||
Total
operating revenues
|
909.2 | 784.8 | 643.2 | |||||||||
Operating
Costs and Expenses:
|
||||||||||||
Fuel
and gas transportation
|
61.9 | 102.4 | 46.4 | |||||||||
Operation
and maintenance
|
142.2 | 119.9 | 127.4 | |||||||||
Administrative
and general
|
122.0 | 106.0 | 97.0 | |||||||||
Depreciation
and amortization
|
203.1 | 124.8 | 81.8 | |||||||||
Contract
settlement gain
|
- | (11.2 | ) | - | ||||||||
Asset
impairment
|
- | 3.0 | 19.2 | |||||||||
Net
loss (gain) on disposal of operating assets and related
contracts
|
8.2 | (49.2 | ) | (23.8 | ) | |||||||
Taxes
other than income taxes
|
77.3 | 42.5 | 29.2 | |||||||||
Total
operating costs and expenses
|
614.7 | 438.2 | 377.2 | |||||||||
|
||||||||||||
Operating
income
|
294.5 | 346.6 | 266.0 | |||||||||
Other
Deductions (Income):
|
||||||||||||
Interest
expense
|
125.3 | 57.7 | 61.0 | |||||||||
Interest
expense – affiliates, net
|
6.8 | - | - | |||||||||
Interest
income
|
(0.2 | ) | (2.9 | ) | (21.5 | ) | ||||||
Miscellaneous
other income, net
|
(0.4 | ) | (3.2 | ) | (2.0 | ) | ||||||
Total
other deductions
|
131.5 | 51.6 | 37.5 | |||||||||
Income
before income taxes
|
163.0 | 295.0 | 228.5 | |||||||||
Income
tax expense
|
0.3 | 1.0 | 0.8 | |||||||||
Net
income
|
$ | 162.7 | $ | 294.0 | $ | 227.7 | ||||||
Net
income per Unit:
|
||||||||||||
Basic
and diluted net income per limited partner unit:
|
||||||||||||
Common
units (1)
|
$ | 0.88 | $ | 2.09 | $ | 1.91 | ||||||
Class
B units
|
$ | 0.08 | $ | 0.60 | $ | - | ||||||
Subordinated
units (1)
|
$ | - | $ | 1.68 | $ | 1.86 | ||||||
Cash
distribution to common and subordinated unitholders (1)
|
$ | 1.95 | $ | 1.87 | $ | 1.74 | ||||||
Cash
distribution to class B units
|
$ | 1.20 | $ | 0.30 | $ | - | ||||||
Weighted-average
number of limited partners units outstanding:
|
||||||||||||
Common
units (1)
|
161.6 | 104.2 | 82.5 | |||||||||
Class
B units (2)
|
22.9 | 22.9 | - | |||||||||
Subordinated
units (1)
|
- | 28.7 | 33.1 | |||||||||
(1)
All of the 33.1 million subordinated units converted to common units on a
one-for-one basis in November 2008.
(2)
Number of class B units shown is weighted from July 1, 2008, which is the
date they became eligible to participate in
earnings.
The class B units do not participate in quarterly distributions above
$0.30 per unit.
|
For
the Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
OPERATING
ACTIVITIES:
|
||||||||||||
Net
income
|
$ | 162.7 | $ | 294.0 | $ | 227.7 | ||||||
Adjustments
to reconcile to cash provided by operations:
|
||||||||||||
Depreciation
and amortization
|
203.1 | 124.8 | 81.8 | |||||||||
Amortization
of deferred costs
|
9.4 | 9.0 | 8.3 | |||||||||
Amortization
of acquired executory contracts
|
- | (0.2 | ) | (1.1 | ) | |||||||
Asset
impairment
|
- | 3.0 | 19.2 | |||||||||
Net
loss (gain) on disposal of operating assets and related
contracts
|
8.2 | (49.2 | ) | (23.8 | ) | |||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Trade
and other receivables
|
(23.4 | ) | (16.6 | ) | (4.1 | ) | ||||||
Gas
receivables and storage assets
|
(5.0 | ) | 26.2 | (1.4 | ) | |||||||
Costs
recoverable from customers
|
(1.6 | ) | 0.9 | 3.6 | ||||||||
Inventories
|
- | (8.8 | ) | (2.5 | ) | |||||||
Other
assets
|
(18.0 | ) | (30.5 | ) | (13.3 | ) | ||||||
Trade
and other payables
|
25.9 | 9.5 | (15.9 | ) | ||||||||
Other
payables, affiliates
|
0.7 | - | - | |||||||||
Gas
payables
|
2.4 | (15.1 | ) | (11.1 | ) | |||||||
Accrued
liabilities
|
4.3 | 7.0 | 12.9 | |||||||||
Other
liabilities
|
31.8 | (3.7 | ) | 1.4 | ||||||||
Net
cash provided by operating activities
|
400.5 | 350.3 | 281.7 | |||||||||
INVESTING
ACTIVITIES:
|
||||||||||||
Capital
expenditures
|
(846.8 | ) | (2,652.5 | ) | (1,209.8 | ) | ||||||
Proceeds
from sale of operating assets, net
|
- | 63.8 | 28.7 | |||||||||
Proceeds
from insurance reimbursements and other recoveries
|
- | 4.7 | 1.7 | |||||||||
Advances
to affiliates, net
|
- | 1.6 | (0.9 | ) | ||||||||
Sales
(purchases) of short-term investments
|
175.0 | (175.0 | ) | - | ||||||||
Net
cash used in investing activities
|
(671.8 | ) | (2,757.4 | ) | (1,180.3 | ) | ||||||
FINANCING
ACTIVITIES:
|
||||||||||||
Proceeds
from long-term debt, net of issuance costs
|
346.7 | 247.2 | 495.3 | |||||||||
Proceeds
from borrowings on revolving credit agreement
|
411.5 | 1,484.0 | - | |||||||||
Repayment
of borrowings on revolving credit agreement
|
(650.0 | ) | (692.0 | ) | - | |||||||
Payments
on note payable
|
(1.3 | ) | - | - | ||||||||
Proceeds
from long-term debt – affiliate
|
200.0 | - | - | |||||||||
Repayment
of long-term debt – affiliate
|
(100.0 | ) | - | - | ||||||||
Distributions
paid
|
(360.6 | ) | (260.5 | ) | (205.0 | ) | ||||||
Proceeds
from sale of common units
|
326.3 | 733.6 | 515.9 | |||||||||
Proceeds
from sale of class B units
|
- | 686.0 | - | |||||||||
Capital
contribution from general partner
|
6.8 | 29.2 | 10.7 | |||||||||
Net
cash provided by financing activities
|
179.4 | 2,227.5 | 816.9 | |||||||||
Decrease in
cash and cash equivalents
|
(91.9 | ) | (179.6 | ) | (81.7 | ) | ||||||
Cash
and cash equivalents at beginning of period
|
137.7 | 317.3 | 399.0 | |||||||||
Cash
and cash equivalents at end of period
|
$ | 45.8 | $ | 137.7 | $ | 317.3 |
Common
Units
|
Class
B
Units
|
Subordinated Units
|
General
Partner
|
Accumulated Other
Comp (Loss) Income
|
Total
Partners’ Capital
|
|||||||||||||||||||
Balance
January 1, 2007
|
$ | 941.8 | $ | - | $ | 285.6 | $ | 22.1 | $ | 23.0 | $ | 1,272.5 | ||||||||||||
Add
(deduct):
|
||||||||||||||||||||||||
Net
income
|
157.2 | - | 63.5 | 7.0 | - | 227.7 | ||||||||||||||||||
Distributions
paid
|
(141.0 | ) | - | (57.4 | ) | (6.6 | ) | - | (205.0 | ) | ||||||||||||||
Sale
of common units, net of
related
transaction costs
|
515.9 | - | - | - | - | 515.9 | ||||||||||||||||||
Capital
contribution from general
partner
|
- | - | - | 10.7 | - | 10.7 | ||||||||||||||||||
Other
comprehensive loss, net of tax
|
- | - | - | - | (18.8 | ) | (18.8 | ) | ||||||||||||||||
Balance
December 31, 2007
|
$ | 1,473.9 | $ | - | $ | 291.7 | $ | 33.2 | $ | 4.2 | $ | 1,803.0 | ||||||||||||
Add
(deduct):
|
||||||||||||||||||||||||
Net
income
|
207.4 | 13.7 | 59.7 | 13.2 | - | 294.0 | ||||||||||||||||||
Distributions
paid
|
(179.0 | ) | (6.9 | ) | (61.9 | ) | (12.7 | ) | - | (260.5 | ) | |||||||||||||
Sale
of common units, net of
related
transaction costs
|
713.0 | - | - | - | - | 713.0 | ||||||||||||||||||
Sale
of class B units
|
- | 686.0 | - | - | - | 686.0 | ||||||||||||||||||
Conversion
of subordinated units
to
common units
|
289.5 | - | (289.5 | ) | - | - | - | |||||||||||||||||
Capital
contribution from
general
partner
|
- | - | - | 29.2 | - | 29.2 | ||||||||||||||||||
Other
comprehensive loss, net of tax
|
- | - | - | - | (19.7 | ) | (19.7 | ) | ||||||||||||||||
Balance
December 31, 2008
|
$ | 2,504.8 | $ | 692.8 | $ | - | $ | 62.9 | $ | (15.5 | ) | $ | 3,245.0 | |||||||||||
Add
(deduct):
|
||||||||||||||||||||||||
Net
income
|
128.2 | 18.2 | - | 16.3 | - | 162.7 | ||||||||||||||||||
Distributions
paid
|
(312.7 | ) | (27.4 | ) | - | (20.5 | ) | - | (360.6 | ) | ||||||||||||||
Sale
of common units, net of
related
transaction costs
|
320.2 | - | - | - | - | 320.2 | ||||||||||||||||||
Capital
contribution from
general
partner
|
- | - | - | 6.8 | - | 6.8 | ||||||||||||||||||
Other
comprehensive loss, net of tax
|
- | - | - | - | (9.9 | ) | (9.9 | ) | ||||||||||||||||
Balance
December 31, 2009
|
$ | 2,640.5 | $ | 683.6 | $ | - | $ | 65.5 | $ | (25.4 | ) | $ | 3,364.2 |
For
the Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Net
income
|
$ | 162.7 | $ | 294.0 | $ | 227.7 | ||||||
Other
comprehensive income (loss):
|
||||||||||||
Gain
(loss) on cash flow hedges
|
10.5 | (16.7 | ) | (9.8 | ) | |||||||
Reclassification
adjustment transferred to Net income
from
cash flow hedges
|
(16.5 | ) | 24.9 | (7.3 | ) | |||||||
Pension
and other postretirement benefits costs
|
(3.9 | ) | (27.9 | ) | (1.7 | ) | ||||||
Total
comprehensive income
|
$ | 152.8 | $ | 274.3 | $ | 208.9 |
For
the Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Capitalized
interest and allowance for borrowed funds used during
construction
|
$ | 10.3 | $ | 71.1 | $ | 27.1 | ||||||
Allowance
for equity funds used during construction
|
0.4 | 0.2 | 3.0 |
2010
|
$ | 4.1 | ||
2011
|
3.4 | |||
2012
|
3.1 | |||
2013
|
3.1 | |||
2014
|
2.8 | |||
Thereafter
|
7.5 | |||
Total
|
$ | 24.0 |
2010
|
$ | 47.7 | ||
2011
|
0.1 | |||
2012
|
- | |||
2013
|
- | |||
2014
|
- | |||
Thereafter
|
- | |||
Total
|
$ | 47.8 |
2010
|
$ | 12.4 | ||
2011
|
10.3 | |||
2012
|
10.3 | |||
2013
|
10.3 | |||
2014
|
10.3 | |||
Thereafter
|
26.2 | |||
Total
|
$ | 79.8 |
Category
|
2009
Class Amount
|
Weighted-Average
Useful Lives (Years)
|
2008
Class Amount
|
Weighted-Average
Useful Lives (Years)
|
||||||||||||
Depreciable
plant:
|
||||||||||||||||
Transmission
|
$ | 6,040.8 | 37 | $ | 3,537.2 | 39 | ||||||||||
Storage
|
275.1 | 45 | 248.9 | 47 | ||||||||||||
Gathering
|
91.6 | 19 | 91.4 | 19 | ||||||||||||
General
|
93.5 | 16 | 88.3 | 15 | ||||||||||||
Rights
of way and other
|
34.8 | 28 | 36.9 | 24 | ||||||||||||
Total
utility depreciable plant
|
6,535.8 | 37 | 4,002.7 | 39 | ||||||||||||
Non-depreciable:
|
||||||||||||||||
Construction
work in progress
|
231.4 | 2,196.4 | ||||||||||||||
Storage
|
55.4 | 61.6 | ||||||||||||||
Land
|
15.3 | 13.3 | ||||||||||||||
Other
|
17.3 | 8.6 | ||||||||||||||
Total
other
|
319.4 | 2,279.9 | ||||||||||||||
Total
PPE
|
6,855.2 | 6,282.6 | ||||||||||||||
Less: accumulated depreciation
|
577.3 | 382.4 | ||||||||||||||
Total
PPE, net
|
$ | 6,277.9 | $ | 5,900.2 |
2009
|
2008
|
|||||||||||||||
Gross
PPE Investment
|
Accumulated
Depreciation
|
Gross
PPE Investment
|
Accumulated
Depreciation
|
|||||||||||||
Bistineau
storage
|
$ | 58.0 | $ | 8.7 | $ | 57.1 | $ | 6.9 | ||||||||
Mobile
Bay Pipeline
|
11.3 | 1.7 | 11.2 | 1.4 | ||||||||||||
Offshore
and other assets
|
19.2 | 11.9 | 19.0 | 11.5 | ||||||||||||
Total
|
$ | 88.5 | $ | 22.3 | $ | 87.3 | $ | 19.8 |
2009
|
2008
|
|||||||
Balance
at beginning of year
|
$ | 18.0 | $ | 16.1 | ||||
Liabilities
recorded
|
2.1 | 1.6 | ||||||
Liabilities
settled
|
(2.9 | ) | (0.5 | ) | ||||
Accretion
expense
|
0.8 | 0.8 | ||||||
Balance
at end of year
|
$ | 18.0 | $ | 18.0 |
2009
|
2008
|
|||||||
Regulatory
Assets:
|
||||||||
Pension
|
$ | 10.6 | $ | 9.5 | ||||
Tax
effect of AFUDC equity
|
5.5 | 5.9 | ||||||
Unamortized
debt expense and premium on reacquired debt
|
8.9 | 10.0 | ||||||
Postretirement
benefits other than pension
|
5.4 | 5.4 | ||||||
Fuel
tracker
|
0.6 | - | ||||||
Total
regulatory assets
|
$ | 31.0 | $ | 30.8 | ||||
Regulatory
Liabilities:
|
||||||||
Cashout
and fuel tracker
|
$ | 1.9 | $ | 2.3 | ||||
Provision
for other asset retirement
|
47.0 | 45.6 | ||||||
Unamortized
discount on long-term debt
|
(2.9 | ) | (3.5 | ) | ||||
Postretirement
benefits other than pension
|
17.6 | 4.7 | ||||||
Other
|
0.5 | - | ||||||
Total
regulatory liabilities
|
$ | 64.1 | $ | 49.1 |
2009
|
2008
|
|||||||
Notes
and Debentures:
|
||||||||
Boardwalk
Pipelines
|
||||||||
5.88%
Notes due 2016
|
$ | 250.0 | $ | 250.0 | ||||
5.20%
Notes due 2018
|
185.0 | 185.0 | ||||||
5.50%
Notes due 2017
|
300.0 | 300.0 | ||||||
5.75%
Notes due 2019
|
350.0 | - | ||||||
Gulf
South
|
||||||||
6.30%
Notes due 2017
|
275.0 | 275.0 | ||||||
5.75%
Notes due 2012
|
225.0 | 225.0 | ||||||
5.05%
Notes due 2015
|
275.0 | 275.0 | ||||||
Texas
Gas
|
||||||||
7.25%
Debentures due 2027
|
100.0 | 100.0 | ||||||
4.60%
Notes due 2015
|
250.0 | 250.0 | ||||||
5.50%
Notes due 2013
|
250.0 | 250.0 | ||||||
Total
notes and debentures
|
2,460.0 | 2,110.0 | ||||||
Revolving
Credit Facility:
|
||||||||
Boardwalk
Pipelines
|
135.0 | 285.0 | ||||||
Gulf
South
|
228.5 | 317.0 | ||||||
Texas
Gas
|
190.0 | 190.0 | ||||||
Total
revolving credit facility
|
553.5 | 792.0 | ||||||
Subordinated
Loan Agreement with BPHC
|
100.0 | - | ||||||
3,113.5 | 2,902.0 | |||||||
Less:
unamortized debt discount
|
(13.5 | ) | (12.6 | ) | ||||
Total
Long-Term Debt
|
$ | 3,100.0 | $ | 2,889.4 |
2010
|
- | |||
2011
|
- | |||
2012
|
$ | 878.5 | ||
2013
|
250.0 | |||
2014
|
- | |||
Thereafter
|
1,985.0 | |||
Total
long-term debt
|
$ | 3,113.5 |
Date
of Issuance
|
Issuing
Subsidiary
|
Amount
of
Issuance
|
Purchaser
Discounts and Expenses
|
Net
Proceeds
|
Interest
Rate
|
Maturity
Date
|
Interest
Payable
|
||||||||||||
August
2009
|
Boardwalk
Pipelines
|
$ | 350.0 | $ | 3.3 | $ | 346.7 | 5.75 | % |
September
15, 2019
|
March
15 and September 15
|
||||||||
March
2008
|
Texas
Gas
|
250.0 | 2.8 | 247.2 | 5.50 | % |
April
1, 2013
|
April
1 and October 1
|
|||||||||||
August
2007
|
Gulf
South
|
225.0 | 2.0 | 223.0 | 5.75 | % |
August
15, 2012
|
February
15 and August 15
|
|||||||||||
August
2007
|
Gulf
South
|
275.0 | 2.7 | 272.3 | 6.30 | % |
August
15, 2017
|
February
15 and August 15
|
Month
of Offering
|
Number
of Common Units
|
Issuance
Price
|
Less
Underwriting Discounts and Expenses
|
Net
Proceeds
(including
General Partner Contribution)
|
Common
Units Outstanding
After
Offering
|
Common
Units Held by the Public
After
Offering
|
||||||||||||||||||
August
2009 (1)
|
8.1 | $ | 23.00 | $ | 7.0 | $ | 183.1 | 169.7 | 55.5 | |||||||||||||||
June
2009 (1) (2)
|
6.7 | 21.99 | - | 150.0 | 161.6 | (3) | 47.4 | |||||||||||||||||
October
2008 (2)
|
21.2 | 23.13 | - | 500.0 | 121.8 | 47.4 | ||||||||||||||||||
June
2008
|
10.0 | 25.30 | 9.4 | 248.8 | 100.7 | 47.4 | ||||||||||||||||||
November
2007
|
7.4 | 30.90 | 3.7 | 232.8 | 90.7 | 37.4 | ||||||||||||||||||
March
2007
|
8.0 | 36.50 | 4.2 | 293.8 | 83.2 | 29.9 |
(1)
|
BPHC
waived the mandatory prepayment required pursuant to provisions associated
with the Subordinated Loans as a result of this
offering.
|
(2)
|
Sold
to BPHC in a private placement.
|
(3)
|
Includes
the conversion of all of the 33.1 million subordinated units into common
units in November 2008.
|
Common
Units
|
Class
B Units
|
Subordinated
Units
|
||||||||||
Balance,
January 1, 2007
|
75.2 | - | 33.1 | |||||||||
Common
units issued in connection with underwritten offerings
|
15.4 | - | - | |||||||||
Balance,
December 31, 2007
|
90.6 | - | 33.1 | |||||||||
Common
units issued in connection with underwritten offerings
|
10.0 | - | - | |||||||||
Class
B units issued and sold to BPHC in a private placement
|
- | 22.9 | - | |||||||||
Common
units issued and sold to BPHC in a private placement
|
21.2 | - | - | |||||||||
Conversion
of subordinated units to common units
|
33.1 | - | (33.1 | ) | ||||||||
Balance,
December 31, 2008
|
154.9 | 22.9 | - | |||||||||
Common
units issued and sold to BPHC in a private placement
|
6.7 | - | - | |||||||||
Common
units issued in connection with underwritten offerings
|
8.1 | - | - | |||||||||
Balance,
December 31, 2009
|
169.7 | 22.9 | - |
Asset
Derivatives
|
Liability
Derivatives
|
|||||||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||
Balance
sheet location
|
Fair
Value
|
Balance
sheet
location
|
Fair
Value
|
Balance
sheet location
|
Fair
Value
|
Balance
sheet
location
|
Fair
Value
|
|||||||||||||
Derivatives
designated as hedging instruments
|
||||||||||||||||||||
Commodity
contracts
|
Other
current
assets
|
$ | 6.2 |
Other
current
assets
|
$ | 10.5 |
Other
current
liabilities
|
$ | - |
Other
current
liabilities
|
$ | 0.1 | ||||||||
Other
assets
|
- |
Other
assets
|
3.7 |
Other
liabilities
|
- |
Other
liabilities
|
- | |||||||||||||
$ | 6.2 | $ | 14.2 | $ | - | $ | 0.1 |
Amount
of gain/(loss) recognized in AOCI on derivatives (effective
portion)
|
Location
of gain/(loss) reclassified from AOCI into income (effective
portion)
|
Amount of gain/(loss)
reclassified from AOCI into income (effective
portion)
|
Location
of gain/(loss) recognized in income on derivative (in- effective portion
and amount excluded from effectiveness testing)
|
Amount
of gain/(loss) recognized in income on derivative (in- effective portion
and amount excluded from effectiveness testing)
|
|||||||||||||
Derivatives
in Cash Flow Hedging Relationship
|
|||||||||||||||||
Commodity
contracts
|
$ | 10.5 |
Operating
revenues
|
$ | 18.6 |
Net
gain/(loss) on disposal of operating assets and related
contracts
|
$ | (0.4 | ) | ||||||||
Interest
rate contracts (1)
|
- |
Interest
expense
|
(1.7 | ) | N/A | - | |||||||||||
$ | 10.5 | $ | 16.9 | $ | (0.4 | ) |
(1)
|
Related
to amounts deferred in AOCI from Treasury rate locks used in hedging
interest payments associated with debt offerings which were settled in
previous periods and are being amortized to earnings over the terms of
related interest payments, generally the terms of the related
debt.
|
Retirement
Plans
|
PBOP
|
|||||||||||||||
For
the Year Ended
December
31,
|
For
the Year Ended
December
31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Change
in benefit obligation:
|
||||||||||||||||
Benefit
obligation at beginning of period
|
$ | 109.9 | $ | 108.5 | $ | 52.4 | $ | 56.9 | ||||||||
Service
cost
|
3.7 | 3.7 | 0.5 | 0.6 | ||||||||||||
Interest
cost
|
7.0 | 6.5 | 3.0 | 3.2 | ||||||||||||
Plan
participants’ contributions
|
- | - | 1.0 | 1.1 | ||||||||||||
Actuarial
loss (gain)
|
6.5 | (3.4 | ) | (0.1 | ) | (6.2 | ) | |||||||||
Benefits
paid
|
(5.1 | ) | (4.0 | ) | (3.6 | ) | (3.2 | ) | ||||||||
Settlement
|
- | (1.4 | ) | - | - | |||||||||||
Benefit
obligation at end of period
|
$ | 122.0 | $ | 109.9 | $ | 53.2 | $ | 52.4 | ||||||||
Change
in plan assets:
|
||||||||||||||||
Fair
value of plan assets at beginning of period
|
$ | 74.2 | $ | 91.3 | $ | 66.7 | $ | 84.2 | ||||||||
Actual
return on plan assets
|
15.3 | (16.3 | ) | 8.7 | (16.2 | ) | ||||||||||
Benefits
paid
|
(5.1 | ) | (4.0 | ) | (3.6 | ) | (3.2 | ) | ||||||||
Company
contributions
|
6.0 | 4.6 | - | 0.8 | ||||||||||||
Plan
participants’ contributions
|
- | - | 1.0 | 1.1 | ||||||||||||
Settlement
|
- | (1.4 | ) | - | - | |||||||||||
Fair
value of plan assets at end of period
|
$ | 90.4 | $ | 74.2 | $ | 72.8 | $ | 66.7 | ||||||||
Funded
status
|
$ | (31.6 | ) | $ | (35.7 | ) | $ | 19.6 | $ | 14.3 | ||||||
Items
not recognized as components of net periodic cost:
|
||||||||||||||||
Prior
service cost (credit)
|
$ | 0.1 | $ | 0.1 | $ | (47.5 | ) | $ | (55.2 | ) | ||||||
Net
actuarial loss
|
25.7 | 31.0 | 18.7 | 25.6 | ||||||||||||
Total
|
$ | 25.8 | $ | 31.1 | $ | (28.8 | ) | $ | (29.6 | ) |
For
the Year Ended
December
31,
|
||||||||
2009
|
2008
|
|||||||
Projected
benefit obligation
|
$ | 122.0 | $ | 109.9 | ||||
Accumulated
benefit obligation
|
109.3 | 97.4 | ||||||
Fair
value of plan assets
|
90.4 | 74.2 |
Retirement
Plans
|
PBOP
|
|||||||||||||||||||||||
For
the Year Ended December 31,
|
For
the Year Ended December 31,
|
|||||||||||||||||||||||
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
|||||||||||||||||||
Service
cost
|
$ | 3.7 | $ | 3.7 | $ | 3.9 | $ | 0.5 | $ | 0.6 | $ | 0.6 | ||||||||||||
Interest
cost
|
7.0 | 6.5 | 6.6 | 3.0 | 3.2 | 3.3 | ||||||||||||||||||
Expected
return on plan assets
|
(5.6 | ) | (6.8 | ) | (7.1 | ) | (3.4 | ) | (5.0 | ) | (4.7 | ) | ||||||||||||
Amortization
of prior service credit
|
- | - | - | (7.7 | ) | (7.8 | ) | (7.8 | ) | |||||||||||||||
Amortization
of unrecognized net loss
|
2.1 | 0.1 | 0.2 | 1.5 | 0.1 | 0.7 | ||||||||||||||||||
Settlement
charge
|
- | 0.3 | 4.5 | - | - | - | ||||||||||||||||||
Regulatory
asset (increase) decrease
|
(1.1 | ) | - | (1.7 | ) | 5.4 | 5.4 | 5.4 | ||||||||||||||||
Net
periodic benefit cost
|
$ | 6.1 | $ | 3.8 | $ | 6.4 | $ | (0.7 | ) | $ | (3.5 | ) | $ | (2.5 | ) |
Retirement
Plans
|
PBOP
|
|||||||
2010
|
$ | 5.3 | $ | 4.2 | ||||
2011
|
5.4 | 4.1 | ||||||
2012
|
9.2 | 3.9 | ||||||
2013
|
10.3 | 3.8 | ||||||
2014
|
11.4 | 3.8 | ||||||
2015-2019
|
77.6 | 19.0 |
Retirement
Plans
|
PBOP
|
|||||||||||||||
For
the Year Ended
December
31,
|
For
the Year Ended
December
31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Discount
rate
|
5.70 | % | 6.30 | % | 5.70 | % | 6.30 | % | ||||||||
Rate
of compensation increase
|
4.00 | % | 4.00 | % | - | - |
Retirement
Plans
|
PBOP
|
||||||
For
the Year Ended
December
31,
|
For
the Year Ended
December
31,
|
||||||
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
||
Discount rate
|
6.30%
|
6.00%
|
5.94%
|
6.30%
|
6.00%
|
5.75%
|
|
Expected return on plan assets
|
7.50%
|
7.50%
|
7.50%
|
5.35%to5.35%
|
6.15%to6.15%
|
5.00%to6.15%
|
|
Rate of compensation increase
|
4.00%
|
4.00%
|
5.50%
|
-
|
-
|
-
|
Effect of 1% Increase:
|
2009
|
|||
Benefit
obligation at end of year
|
$ | 1.3 | ||
Total
of service and interest costs for year
|
0.1 |
Effect of 1% Decrease:
|
||||
Benefit
obligation at end of year
|
$ | (1.5 | ) | |
Total
of service and interest costs for year
|
(0.1 | ) |
Master
Trust Assets
|
||||||||||||||||
Level
1
|
Level
2
|
Level
3
|
Total
|
|||||||||||||
Equity
securities
|
$ | 26.2 | $ | - | $ | - | $ | 26.2 | ||||||||
Short-term
investments
|
11.5 | - | - | 11.5 | ||||||||||||
Corporate
and other taxable bonds
|
- | 71.8 | - | 71.8 | ||||||||||||
Asset-backed
securities
|
- | 4.0 | - | 4.0 | ||||||||||||
Limited
partnerships and other invested assets
|
- | 36.8 | 35.6 | 72.4 | ||||||||||||
Total
investments
|
$ | 37.7 | $ | 112.6 | $ | 35.6 | $ | 185.9 |
Limited
Partnerships
|
||||
Beginning
Balance - January 1, 2009
|
$ | 54.6 | ||
Actual
return on assets still held
|
14.5 | |||
Actual
return on assets sold
|
0.6 | |||
Purchases,
sales and settlements
|
2.7 | |||
Net
transfers in/(out) of Level 3
|
(36.8 | ) | ||
Ending
Balance - December 31, 2009
|
$ | 35.6 |
PBOP
Trust Assets
|
||||||||||||||||
Level
1
|
Level
2
|
Level
3
|
Total
|
|||||||||||||
Short-term
investments
|
$ | 9.5 | $ | - | $ | - | $ | 9.5 | ||||||||
Asset-backed
securities
|
- | 2.0 | - | 2.0 | ||||||||||||
Corporate
and other taxable bonds
|
- | 17.2 | - | 17.2 | ||||||||||||
Tax
exempt securities
|
- | 28.5 | - | 28.5 | ||||||||||||
Limited
partnerships
|
- | - | 15.6 | 15.6 | ||||||||||||
Total
investments
|
$ | 9.5 | $ | 47.7 | $ | 15.6 | $ | 72.8 |
Limited
Partnerships
|
||||
Beginning
Balance - January 1, 2009
|
$ | 22.9 | ||
Actual
return on assets still held
|
3.7 | |||
Actual
return on assets sold
|
- | |||
Purchases,
sales and settlements
|
(11.0 | ) | ||
Net
transfers in/(out) of Level 3
|
- | |||
Ending
Balance - December 31, 2009
|
$ | 15.6 |
Phantom
GP Units
|
Total
Fair Value
(in
millions)
|
Weighted-Average
Vesting Period
(in
years)
|
||||||||||
Outstanding
at January 1, 2008 (1)
|
361 | $ | 18.1 | 3.0 | ||||||||
Granted
(2)
|
125 | 6.3 | 4.0 | |||||||||
Paid
|
(33 | ) | (0.4 | ) | - | |||||||
Forfeited
|
(76 | ) | - | - | ||||||||
Outstanding
at December 31, 2008 (1)
|
377 | 16.9 | 2.7 | |||||||||
Granted
(2)
|
79 | 3.9 | 2.9 | |||||||||
Paid
|
- | - | - | |||||||||
Forfeited
|
- | - | - | |||||||||
Outstanding
at December 31, 2009 (1)
|
456 | 20.6 | 2.0 |
(1)
|
Represents
fair value and remaining weighted-average vesting period of outstanding
awards at the end of the period.
|
(2)
|
Represents
fair value and weighted-average vesting period of awards at grant
date.
|
Phantom
Common Units
|
Total
Fair Value
(in
millions)
|
Weighted-Average
Vesting Period
(in
years)
|
||||||||||
Outstanding
at January 1, 2008 (1)
|
108,521 | $ | 3.5 | 1.8 | ||||||||
Granted
|
54,033 | 1.1 | 2.5 | |||||||||
Paid
|
(32,907 | ) | (0.8 | ) | - | |||||||
Forfeited
|
(21,359 | ) | - | - | ||||||||
Outstanding
at December 31, 2008 (1)
|
108,288 | 2.1 | 1.8 | |||||||||
Granted
(2)
|
1,245 | - | 1.5 | |||||||||
Paid
|
(2,462 | ) | (0.1 | ) | - | |||||||
Forfeited
|
- | - | - | |||||||||
Outstanding
at December 31, 2009 (1)
|
107,071 | 3.5 | 1.4 |
(1)
|
Represents
fair value and remaining weighted-average vesting period of outstanding
awards at the end of the period.
|
(2)
|
The
grant date fair value of these awards is less than $0.1
million.
|
|
Total
Quarterly Distribution
|
Marginal Percentage
Interest in
Distributions
|
|||||||||||
|
Target
Amount
|
Limited
Partner
Unitholders
(1)
|
General
Partner
|
||||||||||
First
Target Distribution
|
|
up to $0.4025
|
|
98%
|
2%
|
||||||||
Second
Target Distribution
|
|
above $0.4025 up to $0.4375
|
|
85%
|
15%
|
||||||||
Third
Target Distribution
|
|
above
$0.4375 up to $0.5250
|
|
75%
|
25%
|
||||||||
Thereafter
|
|
above
$0.5250
|
|
50%
|
50%
|
(1)
|
The
class B unitholders participate in distributions on a pari passu basis
with the Partnership’s common units up to $0.30 per unit per quarter. The
class B units do not participate in quarterly distributions above $0.30
per unit. The class B units began sharing in income allocations and
distributions with respect to the third quarter
2008.
|
Payment
Date
|
Distribution
per Unit
|
Amount
Paid to Common and Subordinated Unitholders
(1)
|
Amount
Paid to Class B Unitholder
|
Amount
Paid to General Partner (Including IDRs)
(2)
|
||||||||||||
November
9, 2009
|
$ | 0.495 | $ | 84.0 | $ | 6.8 | $ | 5.9 | ||||||||
August
10, 2009
|
0.490 | 79.2 | 6.9 | 5.2 | ||||||||||||
May
11, 2009
|
0.485 | 75.1 | 6.8 | 4.9 | ||||||||||||
February
23, 2009
|
0.480 | 74.4 | 6.9 | 4.5 | ||||||||||||
November
10, 2008
|
0.475 | 63.6 | 6.9 | 3.7 | ||||||||||||
August
11, 2008
|
0.470 | 62.8 | - | 3.4 | ||||||||||||
May
12, 2008
|
0.465 | 57.6 | - | 2.9 | ||||||||||||
February
25, 2008
|
0.460 | 56.9 | - | 2.7 | ||||||||||||
November
12, 2007
|
0.450 | 52.3 | - | 2.2 | ||||||||||||
August
13, 2007
|
0.440 | 51.1 | - | 1.7 | ||||||||||||
May
14, 2007
|
0.430 | 50.1 | - | 1.5 | ||||||||||||
February
27, 2007
|
0.415 | 44.9 | - | 1.2 | ||||||||||||
(1)
|
All
of the 33.1 million subordinated units converted to common units on a
one-for-one basis two days following the November 10, 2008
distribution.
|
(2)
|
In
2009, 2008 and 2007, the Partnership paid $13.3 million, $7.5 million and
$2.5 million in distributions on behalf of
IDRs.
|
Total
|
Common
Units
|
Class
B Units
|
General
Partner and IDRs
|
|||||||||||||
Net
income
|
$ | 162.7 | ||||||||||||||
Declared
distribution
|
372.7 | $ | 323.2 | $ | 27.4 | $ | 22.1 | |||||||||
Assumed
allocation of undistributed net loss
|
(210.0 | ) | (180.3 | ) | (25.5 | ) | (4.2 | ) | ||||||||
Assumed
allocation of net income
|
$ | 162.7 | $ | 142.9 | $ | 1.9 | $ | 17.9 | ||||||||
Weighted
average units outstanding
|
161.6 | 22.9 | ||||||||||||||
Net
income per unit
|
$ | 0.88 | $ | 0.08 |
Total
|
Common
Units
|
Class
B Units (1)
|
Subordinated
Units (2)
|
General
Partner
And IDRs
|
||||||||||||||||
Net
income
|
$ | 294.0 | ||||||||||||||||||
Declared
distribution
|
286.7 | $ | 211.7 | $ | 13.7 | $ | 46.7 | $ | 14.6 | |||||||||||
Assumed
allocation of undistributed net income
|
7.3 | 5.6 | - | 1.5 | 0.2 | |||||||||||||||
Assumed
allocation of net income
|
$ | 294.0 | $ | 217.3 | $ | 13.7 | $ | 48.2 | $ | 14.8 | ||||||||||
Weighted
average units outstanding
|
104.2 | 22.9 | 28.7 | |||||||||||||||||
Net
income per unit
|
$ | 2.09 | $ | 0.60 | $ | 1.68 | ||||||||||||||
(1)
|
The
number of units shown is weighted from July 1, 2008, which is the date the
class B units became eligible to participate in income
allocations. As a result, no assumed allocations of net income
were made to the class B units for purposes of computing net income per
unit prior to July 1, 2008.
|
(2)
|
All
of the 33.1 million subordinated units converted to common units on a
one-to-one basis in November 2008.
|
Total
|
Common
Units
|
Subordinated
Units
|
General
Partner
And
IDRs
|
|||||||||||||
Net
income
|
$ | 227.7 | ||||||||||||||
Declared
distribution
|
218.5 | $ | 151.5 | $ | 58.9 | $ | 8.1 | |||||||||
Assumed
allocation of undistributed net income
|
9.2 | 6.4 | 2.6 | 0.2 | ||||||||||||
Assumed
allocation of net income
|
$ | 227.7 | $ | 157.9 | $ | 61.5 | $ | 8.3 | ||||||||
Weighted
average units outstanding
|
82.5 | 33.1 | ||||||||||||||
Net
income per unit
|
$ | 1.91 | $ | 1.86 |
For
the Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Current
expense:
|
||||||||||||
State
|
$ | 0.2 | $ | 0.7 | $ | 0.8 | ||||||
Total
|
0.2 | 0.7 | 0.8 | |||||||||
Deferred
provision:
|
||||||||||||
State
|
0.1 | 0.3 | - | |||||||||
Total
|
0.1 | 0.3 | - | |||||||||
Income
taxes
|
$ | 0.3 | $ | 1.0 | $ | 0.8 |
2009
|
2008
|
|||||||||||||||
Financial
Assets
|
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
||||||||||||
Cash
and cash equivalents
|
$ | 45.8 | $ | 45.8 | $ | 137.7 | $ | 137.7 | ||||||||
Short-term
investments
|
- | - | 175.0 | 175.0 | ||||||||||||
Financial
Liabilities
|
||||||||||||||||
Long-term
debt
|
$ | 3,000.0 | $ | 3,060.6 | $ | 2,889.4 | $ | 2,655.3 | ||||||||
Long-term
debt – affiliate
|
100.0 | 108.0 | - | - |
For
the Year Ended
December
31,
|
||||||||
2009
|
2008
|
|||||||
Loss
on cash flow hedges, net of tax
|
$ | (6.7 | ) | $ | (0.7 | ) | ||
Deferred
components of net periodic benefit cost, net of tax
|
(18.7 | ) | (14.8 | ) | ||||
Total
Accumulated other comprehensive loss, net of tax
|
$ | (25.4 | ) | $ | (15.5 | ) |
For
the Year Ended December 31,
|
||||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||
Customer
|
Revenue
|
%
|
Revenue
|
%
|
Revenue
|
%
|
||||||||||||||||||
Devon
Energy Production
Company,
LP
|
$ | 102.6 | 11 | % | $ | 47.2 | 6 | % | $ | 16.8 | 3 | % | ||||||||||||
Atmos
Energy
|
53.7 | 6 | % | 73.0 | 9 | % | 63.9 | 10 | % |
For
the Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Cash
paid during the period for:
|
||||||||||||
Interest
(net of amount capitalized)
|
$ | 124.4 | $ | 42.8 | $ | 46.1 | ||||||
Income
taxes, net
|
0.2 | 0.8 | 0.3 | |||||||||
Non-cash
adjustments:
|
||||||||||||
Accounts
payable and PPE
|
$ | 173.2 | $ | 86.8 | $ | 175.8 | ||||||
Accrued
registration rights costs
|
6.1 | 20.6 | - |
2009
For
the Quarter Ended:
|
||||||||||||||||
December
31
|
September
30
|
June
30
|
March
31
|
|||||||||||||
Operating
revenues
|
$ | 279.0 | $ | 205.4 | $ | 201.4 | $ | 223.4 | ||||||||
Operating
expenses
|
170.7 | 151.0 | 148.2 | 144.8 | ||||||||||||
Operating
income
|
108.3 | 54.4 | 53.2 | 78.6 | ||||||||||||
Interest
expense, net
|
36.8 | 35.7 | 32.9 | 26.5 | ||||||||||||
Other
(income) expense
|
(0.2 | ) | - | - | (0.2 | ) | ||||||||||
Income
before income taxes
|
71.7 | 18.7 | 20.3 | 52.3 | ||||||||||||
Income
taxes (benefit)
|
0.1 | (0.1 | ) | - | 0.3 | |||||||||||
Net
income
|
$ | 71.6 | $ | 18.8 | $ | 20.3 | $ | 52.0 | ||||||||
Net
income per unit:
|
||||||||||||||||
Common
units
|
$ | 0.37 | $ | 0.10 | $ | 0.12 | $ | 0.29 | ||||||||
Class
B units
|
$ | 0.17 | $ | (0.10 | ) | $ | (0.09 | ) | $ | 0.11 | ||||||
Total
Comprehensive Income
|
$ | 73.6 | $ | 11.7 | $ | 12.3 | $ | 55.2 | ||||||||
2008
For
the Quarter Ended:
|
||||||||||||||||
December
31
|
September
30
|
June
30
|
March
31
|
|||||||||||||
Operating
revenues
|
$ | 205.6 | $ | 191.6 | $ | 190.3 | $ | 197.3 | ||||||||
Operating
expenses
|
130.3 | 102.8 | 109.3 | 95.8 | ||||||||||||
Operating
income
|
75.3 | 88.8 | 81.0 | 101.5 | ||||||||||||
Interest
expense, net
|
10.9 | 8.6 | 17.3 | 18.0 | ||||||||||||
Other
(income) expense
|
(3.4 | ) | 6.3 | (1.2 | ) | (4.9 | ) | |||||||||
Income
before income taxes
|
67.8 | 73.9 | 64.9 | 88.4 | ||||||||||||
Income
taxes
|
0.2 | 0.3 | 0.2 | 0.3 | ||||||||||||
Net
income
|
$ | 67.6 | $ | 73.6 | $ | 64.7 | $ | 88.1 | ||||||||
Net
income per unit:
|
||||||||||||||||
Common
units
|
$ | 0.46 | (1) | $ | 0.47 | $ | 0.50 | $ | 0.68 | |||||||
Class
B units
|
$ | 0.20 | (1) | $ | 0.30 | $ | - | $ | - | |||||||
Subordinated
units
|
$ | (0.10 | ) (1) | $ | 0.47 | $ | 0.46 | $ | 0.68 | |||||||
Total
Comprehensive Income
|
$ | 55.4 | $ | 100.3 | $ | 56.5 | $ | 62.1 | ||||||||
(1)
|
As
discussed in Note 11, in the first quarter 2009, the Partnership changed
the method used in computing its net income per unit due to a change in
GAAP. As a result, the net income per unit for the quarter
ended December 31, 2008, has been retrospectively adjusted from $0.40 per
common and subordinated unit to $0.46 per common unit and $(0.10) per
subordinated unit. Additionally, net income per unit for the quarter ended
December 31, 2008, was retrospectively adjusted from $0.30 per class B
unit to $0.20 per class B unit.
|
Assets
|
Parent
Guarantor
|
Subsidiary
Issuer
|
Non-guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Boardwalk Pipeline Partners, LP
|
|||||||||||||||
Cash
|
$
|
-
|
$
|
45.6
|
$
|
0.2
|
$
|
-
|
$
|
45.8
|
||||||||||
Receivables
|
-
|
-
|
137.9
|
(28.9
|
)
|
109.0
|
||||||||||||||
Gas
stored underground
|
-
|
-
|
2.1
|
-
|
2.1
|
|||||||||||||||
Prepayments
|
-
|
-
|
10.1
|
-
|
10.1
|
|||||||||||||||
Advances
to affiliates
|
-
|
128.0
|
-
|
(128.0
|
)
|
-
|
||||||||||||||
Other
current assets
|
0.3
|
-
|
25.2
|
(1.6
|
)
|
23.9
|
||||||||||||||
Total
current assets
|
0.3
|
173.6
|
175.5
|
(158.5
|
)
|
190.9
|
||||||||||||||
Investment
in consolidated
subsidiaries
|
754.9
|
4,592.2
|
-
|
(5,347.1
|
)
|
-
|
||||||||||||||
Property,
plant and equipment, gross
|
0.6
|
-
|
6,854.6
|
-
|
6,855.2
|
|||||||||||||||
Less–accumulated
depreciation and
amortization
|
(0.4
|
)
|
-
|
(576.9
|
)
|
-
|
(577.3
|
)
|
||||||||||||
Property,
plant and equipment, net
|
0.2
|
-
|
6,277.7
|
-
|
6,277.9
|
|||||||||||||||
Other
noncurrent assets
|
0.4
|
2.1
|
424.5
|
-
|
427.0
|
|||||||||||||||
Advances
to affiliates - noncurrent
|
2,638.2
|
121.6
|
165.8
|
(2,925.6
|
)
|
-
|
||||||||||||||
Total
other assets
|
2,638.6
|
123.7
|
590.3
|
(2,925.6
|
)
|
427.0
|
||||||||||||||
Total
Assets
|
$
|
3,394.0
|
$
|
4,889.5
|
$
|
7,043.5
|
$
|
(8,431.2
|
)
|
$
|
6,895.8
|
Liabilities
& Partners' Capital/Member’s Equity
|
Parent
Guarantor
|
Subsidiary
Issuer
|
Non-guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Boardwalk Pipeline Partners, LP
|
|||||||||||||
Payables
|
$
|
8.9
|
$
|
0.3
|
$
|
104.5
|
$
|
(28.9
|
)
|
$
|
84.8
|
|||||||
Advances
from affiliates
|
-
|
-
|
128.0
|
(128.0
|
)
|
-
|
||||||||||||
Other
current liabilities
|
0.3
|
16.9
|
150.5
|
(1.6
|
)
|
166.1
|
||||||||||||
Total
current liabilities
|
9.2
|
17.2
|
383.0
|
(158.5
|
)
|
250.9
|
||||||||||||
Total
long-term debt
|
-
|
1,313.5
|
1,786.5
|
-
|
3,100.0
|
|||||||||||||
Advances
from affiliates - noncurrent
|
20.6
|
2,804.0
|
121.6
|
(2,925.6
|
)
|
20.6
|
||||||||||||
Other
noncurrent liabilities
|
-
|
(0.1
|
)
|
160.2
|
-
|
160.1
|
||||||||||||
Total
other liabilities and
deferred credits
|
20.6
|
2,803.9
|
281.8
|
(2,925.6
|
)
|
180.7
|
||||||||||||
Total
partners’ capital/member’s
equity
|
3,364.2
|
754.9
|
4,592.2
|
(5,347.1
|
)
|
3,364.2
|
||||||||||||
Total
Liabilities and Partners'
Capital/Member’s
Equity
|
$
|
3,394.0
|
$
|
4,889.5
|
$
|
7,043.5
|
$
|
(8,431.2
|
)
|
$
|
6,895.8
|
Assets
|
Parent
Guarantor
|
Subsidiary
Issuer
|
Non-guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Boardwalk Pipeline Partners, LP
|
|||||||||||||||
Cash
|
$
|
-
|
$
|
137.6
|
$
|
0.1
|
$
|
-
|
$
|
137.7
|
||||||||||
Short-term
investments
|
-
|
175.0
|
-
|
-
|
175.0
|
|||||||||||||||
Receivables
|
-
|
-
|
190.1
|
(104.8
|
)
|
85.3
|
||||||||||||||
Gas
stored underground
|
-
|
-
|
0.2
|
-
|
0.2
|
|||||||||||||||
Prepayments
|
-
|
-
|
17.3
|
-
|
17.3
|
|||||||||||||||
Advances
to affiliates
|
-
|
-
|
223.8
|
(223.8
|
)
|
-
|
||||||||||||||
Other
current assets
|
0.8
|
-
|
36.1
|
(0.6
|
)
|
36.3
|
||||||||||||||
Total
current assets
|
0.8
|
312.6
|
467.6
|
(329.2
|
)
|
451.8
|
||||||||||||||
Investment
in consolidated
subsidiaries
|
1,005.0
|
4,303.9
|
-
|
(5,308.9
|
)
|
-
|
||||||||||||||
Property,
plant and equipment, gross
|
0.6
|
-
|
6,282.0
|
-
|
6,282.6
|
|||||||||||||||
Less–accumulated
depreciation and
amortization
|
(0.3
|
)
|
-
|
(382.1
|
)
|
-
|
(382.4
|
)
|
||||||||||||
Property,
plant and equipment, net
|
0.3
|
-
|
5,899.9
|
-
|
5,900.2
|
|||||||||||||||
Other
noncurrent assets
|
1.7
|
2.0
|
366.7
|
(0.8
|
)
|
369.6
|
||||||||||||||
Advances
to affiliates - noncurrent
|
2,262.0
|
154.2
|
253.2
|
(2,669.4
|
)
|
-
|
||||||||||||||
Total
other assets
|
2,263.7
|
156.2
|
619.9
|
(2,670.2
|
)
|
369.6
|
||||||||||||||
Total
Assets
|
$
|
3,269.8
|
$
|
4,772.7
|
$
|
6,987.4
|
$
|
(8,308.3
|
)
|
$
|
6,721.6
|
Liabilities
& Partners' Capital/Member’s Equity
|
Parent
Guarantor
|
Subsidiary
Issuer
|
Non-guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Boardwalk Pipeline Partners, LP
|
|||||||||||||
Payables
|
$
|
2.1
|
$
|
-
|
$
|
328.3
|
$
|
(104.8
|
)
|
$
|
225.6
|
|||||||
Advances
from affiliates
|
-
|
223.8
|
-
|
(223.8
|
)
|
-
|
||||||||||||
Other
current liabilities
|
1.6
|
12.7
|
195.5
|
(1.4
|
)
|
208.4
|
||||||||||||
Total
current liabilities
|
3.7
|
236.5
|
523.8
|
(330.0
|
)
|
434.0
|
||||||||||||
Total
long-term debt
|
-
|
1,015.9
|
1,873.5
|
-
|
2,889.4
|
|||||||||||||
Advances
from affiliates - noncurrent
|
20.6
|
2,515.3
|
154.1
|
(2,669.4
|
)
|
20.6
|
||||||||||||
Other
noncurrent liabilities
|
0.5
|
-
|
132.1
|
-
|
132.6
|
|||||||||||||
Total
other liabilities and
deferred credits
|
21.1
|
2,515.3
|
286.2
|
(2,669.4
|
)
|
153.2
|
||||||||||||
Total
partners’ capital/member’s
equity
|
3,245.0
|
1,005.0
|
4,303.9
|
(5,308.9
|
)
|
3,245.0
|
||||||||||||
Total
Liabilities and Partners'
Capital/Member’s
Equity
|
$
|
3,269.8
|
$
|
4,772.7
|
$
|
6,987.4
|
$
|
(8,308.3
|
)
|
$
|
6,721.6
|
Parent
Guarantor
|
Subsidiary
Issuer
|
Non-guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Boardwalk Pipeline Partners, LP
|
||||||||||||||||
Operating
revenues:
|
||||||||||||||||||||
Gas
transportation
|
$
|
-
|
$
|
-
|
$
|
845.6
|
$
|
(50.7
|
)
|
$
|
794.9
|
|||||||||
Parking
and lending
|
-
|
-
|
41.0
|
(6.1
|
)
|
34.9
|
||||||||||||||
Gas
storage
|
-
|
-
|
57.9
|
(0.3
|
)
|
57.6
|
||||||||||||||
Other
|
-
|
-
|
21.8
|
-
|
21.8
|
|||||||||||||||
Total
operating revenues
|
-
|
-
|
966.3
|
(57.1
|
)
|
909.2
|
||||||||||||||
Operating
cost and expenses:
|
||||||||||||||||||||
Fuel
and gas transportation
|
-
|
-
|
119.0
|
(57.1
|
)
|
61.9
|
||||||||||||||
Operation
and maintenance
|
-
|
-
|
142.2
|
-
|
142.2
|
|||||||||||||||
Administrative
and general
|
(0.2
|
)
|
-
|
122.2
|
-
|
122.0
|
||||||||||||||
Other
operating costs and expenses
|
0.2
|
-
|
288.4
|
-
|
288.6
|
|||||||||||||||
Total
operating costs and
expenses
|
-
|
-
|
671.8
|
(57.1
|
)
|
614.7
|
||||||||||||||
Operating
income
|
-
|
-
|
294.5
|
-
|
294.5
|
|||||||||||||||
Other
deductions (income):
|
||||||||||||||||||||
Interest
expense, affiliate
|
-
|
55.9
|
11.8
|
(60.9
|
)
|
6.8
|
||||||||||||||
Interest
expense
|
-
|
49.9
|
75.4
|
-
|
125.3
|
|||||||||||||||
Interest
income
|
(42.2
|
)
|
(12.0
|
)
|
(6.9
|
)
|
60.9
|
(0.2
|
)
|
|||||||||||
Equity
in earnings of subsidiaries
|
(120.5
|
)
|
(214.3
|
)
|
-
|
334.8
|
-
|
|||||||||||||
Miscellaneous
other income
|
-
|
-
|
(0.4
|
)
|
-
|
(0.4
|
)
|
|||||||||||||
(162.7
|
)
|
(120.5
|
)
|
79.9
|
334.8
|
131.5
|
||||||||||||||
-
|
||||||||||||||||||||
Income
before income taxes
|
162.7
|
120.5
|
214.6
|
(334.8
|
)
|
163.0
|
||||||||||||||
Income
Taxes
|
-
|
-
|
0.3
|
-
|
0.3
|
|||||||||||||||
Net
Income
|
$
|
162.7
|
$
|
120.5
|
$
|
214.3
|
$
|
(334.8
|
)
|
$
|
162.7
|
Parent
Guarantor
|
Subsidiary
Issuer
|
Non-guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Boardwalk Pipeline Partners, LP
|
||||||||||||||||
Operating
revenues:
|
||||||||||||||||||||
Gas
transportation
|
$
|
-
|
$
|
-
|
$
|
712.7
|
$
|
(14.5
|
)
|
$
|
698.2
|
|||||||||
Parking
and lending
|
-
|
-
|
16.3
|
-
|
16.3
|
|||||||||||||||
Gas
storage
|
-
|
-
|
51.6
|
(0.1
|
)
|
51.5
|
||||||||||||||
Other
|
-
|
-
|
18.8
|
-
|
18.8
|
|||||||||||||||
Total
operating revenues
|
-
|
-
|
799.4
|
(14.6
|
)
|
784.8
|
||||||||||||||
Operating
cost and expenses:
|
||||||||||||||||||||
Fuel
and gas transportation
|
-
|
-
|
116.9
|
(14.5
|
)
|
102.4
|
||||||||||||||
Operation
and maintenance
|
-
|
-
|
119.9
|
-
|
119.9
|
|||||||||||||||
Administrative
and general
|
(0.2
|
)
|
-
|
106.2
|
-
|
106.0
|
||||||||||||||
Other
operating costs and expenses
|
0.2
|
-
|
109.7
|
-
|
109.9
|
|||||||||||||||
Total
operating costs and
expenses
|
-
|
-
|
452.7
|
(14.5
|
)
|
438.2
|
||||||||||||||
Operating
income
|
-
|
-
|
346.7
|
(0.1
|
)
|
346.6
|
||||||||||||||
Other
deductions (income):
|
||||||||||||||||||||
Interest
expense
|
0.1
|
82.5
|
58.1
|
(83.0
|
)
|
57.7
|
||||||||||||||
Interest
income
|
(54.9
|
)
|
(10.4
|
)
|
(20.5
|
)
|
82.9
|
(2.9
|
)
|
|||||||||||
Equity
in earnings of subsidiaries
|
(239.2
|
)
|
(311.3
|
)
|
-
|
550.5
|
-
|
|||||||||||||
Miscellaneous
other income, net
|
-
|
-
|
(3.2
|
)
|
-
|
(3.2
|
)
|
|||||||||||||
(294.0
|
)
|
(239.2
|
)
|
34.4
|
550.4
|
51.6
|
||||||||||||||
-
|
||||||||||||||||||||
Income
before income taxes
|
294.0
|
239.2
|
312.3
|
(550.5
|
)
|
295.0
|
||||||||||||||
Income
Taxes
|
-
|
-
|
1.0
|
-
|
1.0
|
|||||||||||||||
Net
Income
|
$
|
294.0
|
$
|
239.2
|
$
|
311.3
|
$
|
(550.5
|
)
|
$
|
294.0
|
Parent
Guarantor
|
Subsidiary
Issuer
|
Non-guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Boardwalk Pipeline Partners, LP
|
||||||||||||||||
Operating
revenues:
|
||||||||||||||||||||
Gas
transportation
|
$
|
-
|
$
|
-
|
$
|
538.8
|
$
|
(9.1
|
)
|
$
|
529.7
|
|||||||||
Parking
and lending
|
-
|
-
|
42.8
|
-
|
42.8
|
|||||||||||||||
Gas
storage
|
-
|
-
|
39.4
|
-
|
39.4
|
|||||||||||||||
Other
|
-
|
-
|
31.3
|
-
|
31.3
|
|||||||||||||||
Total
operating revenues
|
-
|
-
|
652.3
|
(9.1
|
)
|
643.2
|
||||||||||||||
Operating
cost and expenses:
|
||||||||||||||||||||
Fuel
and gas transportation
|
-
|
-
|
55.5
|
(9.1
|
)
|
46.4
|
||||||||||||||
Operation
and maintenance
|
-
|
-
|
127.4
|
-
|
127.4
|
|||||||||||||||
Administrative
and general
|
(0.2
|
)
|
-
|
97.2
|
-
|
97.0
|
||||||||||||||
Other
operating costs and expenses
|
0.2
|
-
|
106.2
|
-
|
106.4
|
|||||||||||||||
Total
operating costs and
expenses
|
-
|
-
|
386.3
|
(9.1
|
)
|
377.2
|
||||||||||||||
Operating
income
|
-
|
-
|
266.0
|
-
|
266.0
|
|||||||||||||||
Other
deductions (income):
|
||||||||||||||||||||
Interest
expense
|
0.2
|
107.8
|
23.7
|
(70.7
|
)
|
61.0
|
||||||||||||||
Interest
income
|
(30.0
|
)
|
(20.0
|
)
|
(42.2
|
)
|
70.7
|
(21.5
|
)
|
|||||||||||
Equity
in earnings of subsidiaries
|
(197.9
|
)
|
(285.7
|
)
|
-
|
483.6
|
-
|
|||||||||||||
Miscellaneous
other income
|
-
|
-
|
(2.0
|
)
|
-
|
(2.0
|
)
|
|||||||||||||
(227.7
|
)
|
(197.9
|
)
|
(20.5
|
)
|
483.6
|
37.5
|
|||||||||||||
-
|
||||||||||||||||||||
Income
before income taxes
|
227.7
|
197.9
|
286.5
|
(483.6
|
)
|
228.5
|
||||||||||||||
Income
Taxes
|
-
|
-
|
0.8
|
-
|
0.8
|
|||||||||||||||
Net
Income
|
$
|
227.7
|
$
|
197.9
|
$
|
285.7
|
$
|
(483.6
|
)
|
$
|
227.7
|
Parent
Guarantor
|
Subsidiary
Issuer
|
Non-guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Boardwalk Pipeline Partners, LP
|
||||||||||||||||
Net Cash Provided by
(Used In) Operating Activities
|
$
|
165.0
|
$
|
(85.0
|
)
|
$
|
443.0
|
$
|
(122.5)
|
$
|
400.5
|
|||||||||
Investing
Activities:
|
||||||||||||||||||||
Capital
expenditures
|
-
|
-
|
(846.8
|
)
|
-
|
(846.8
|
)
|
|||||||||||||
Advances to affiliates,
net
|
(376.2)
|
(250.6)
|
311.3
|
315.5
|
|
-
|
||||||||||||||
Distribution
from consolidated subsidiary
|
240.0
|
-
|
-
|
(240.0
|
)
|
-
|
||||||||||||||
Investment
in consolidated subsidiary
|
-
|
(85.6
|
)
|
-
|
85.6
|
-
|
||||||||||||||
Notes
receivable from affiliates
|
-
|
153.2
|
-
|
(153.2
|
)
|
-
|
||||||||||||||
Sale
of short-term investments
|
-
|
175.0
|
-
|
-
|
175.0
|
|||||||||||||||
Net Cash (Used in) Provided
by Investing Activities
|
(136.2)
|
(8.0)
|
(535.5
|
)
|
7.9
|
|
(671.8
|
)
|
||||||||||||
Financing Activities:
|
||||||||||||||||||||
Proceeds
from long-term debt, net of issuance costs
|
-
|
346.7
|
-
|
-
|
346.7
|
|||||||||||||||
Proceeds from
borrowings on revolving credit
agreement
|
-
|
250.0
|
161.5
|
-
|
411.5
|
|||||||||||||||
Repayment
of borrowings on revolving credit agreement
|
-
|
(400.0
|
)
|
(250.0
|
)
|
-
|
(650.0
|
)
|
||||||||||||
Payments
on note payable
|
(1.3
|
)
|
-
|
-
|
-
|
(1.3
|
)
|
|||||||||||||
Proceeds
from long-term debt - affiliate
|
-
|
200.0
|
-
|
-
|
200.0
|
|||||||||||||||
Repayment
of long-term debt - affiliate
|
-
|
(100.0
|
)
|
(153.2
|
)
|
153.2
|
(100.0
|
)
|
||||||||||||
Contribution
from parent
|
-
|
-
|
85.6
|
(85.6
|
)
|
-
|
||||||||||||||
Distributions
paid
|
(360.6
|
)
|
(360.6
|
)
|
-
|
360.6
|
(360.6
|
)
|
||||||||||||
Capital
contribution from general partner
|
6.8
|
-
|
-
|
-
|
6.8
|
|||||||||||||||
Advances
from affiliates, net
|
-
|
|
64.9
|
|
248.7
|
(313.6)
|
-
|
|||||||||||||
Proceeds
from sale of common units, net of related transaction
costs
|
326.3
|
-
|
-
|
-
|
326.3
|
|||||||||||||||
Net Cash
Provided by
(Used in) Financing Activities
|
(28.8
|
)
|
1.0
|
|
92.6
|
|
114.6
|
179.4
|
||||||||||||
(Decrease)
Increase
in Cash and Cash Equivalents
|
-
|
(92.0
|
)
|
0.1
|
-
|
(91.9
|
)
|
|||||||||||||
Cash and Cash Equivalents at Beginning of Period
|
-
|
137.6
|
0.1
|
-
|
137.7
|
|||||||||||||||
Cash and Cash Equivalents at End of Period
|
$
|
-
|
$
|
45.6
|
$
|
0.2
|
$
|
-
|
$
|
45.8
|
Parent
Guarantor
|
Subsidiary
Issuer
|
Non-guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Boardwalk Pipeline Partners, LP
|
||||||||||||||||
Net Cash Provided by
(Used In) Operating Activities
|
$
|
294.4
|
$
|
(80.8)
|
$
|
375.9
|
$
|
(239.2
|
)
|
$
|
350.3
|
|||||||||
Investing
Activities:
|
||||||||||||||||||||
Capital
expenditures
|
-
|
-
|
(2,652.5
|
)
|
-
|
(2,652.5
|
)
|
|||||||||||||
Proceeds
from sale of operating assets, net
|
-
|
-
|
63.8
|
-
|
63.8
|
|||||||||||||||
Proceeds
from insurance reimbursements and other recoveries
|
-
|
-
|
4.7
|
-
|
4.7
|
|||||||||||||||
Advances to affiliates,
net
|
-
|
1,505.6
|
32.2
|
(1,536.2
|
)
|
1.6
|
||||||||||||||
Distribution
from consolidated subsidiary
|
21.3
|
-
|
-
|
(21.3
|
)
|
-
|
||||||||||||||
Investment
in consolidated subsidiary
|
-
|
(1,268.1
|
)
|
-
|
1,268.1
|
-
|
||||||||||||||
Notes
receivable from affiliates
|
-
|
(153.2
|
)
|
-
|
153.2
|
-
|
||||||||||||||
Purchases
of short-term investments
|
-
|
(175.0
|
)
|
-
|
-
|
(175.0
|
)
|
|||||||||||||
Net Cash (Used in) Provided
by Investing Activities
|
21.3
|
(90.7
|
)
|
(2,551.8
|
)
|
(136.2
|
)
|
(2,757.4
|
)
|
|||||||||||
Financing Activities:
|
||||||||||||||||||||
Proceeds
from long-term debt, net of issuance costs
|
-
|
-
|
247.2
|
-
|
247.2
|
|||||||||||||||
Proceeds from
borrowings on revolving credit agreement
|
-
|
285.0
|
1,199.0
|
-
|
1,484.0
|
|||||||||||||||
Repayment
of borrowings on revolving credit agreement
|
-
|
-
|
(692.0
|
)
|
-
|
(692.0
|
)
|
|||||||||||||
Notes
payable to affiliates
|
-
|
-
|
153.2
|
(153.2
|
)
|
-
|
||||||||||||||
Contribution
from parent
|
-
|
-
|
1,268.1
|
(1,268.1
|
)
|
-
|
||||||||||||||
Distributions
paid
|
(260.5
|
)
|
(260.5
|
)
|
-
|
260.5
|
(260.5
|
)
|
||||||||||||
Capital
contribution from general partner
|
29.2
|
-
|
-
|
-
|
29.2
|
|||||||||||||||
Advances
from affiliates, net
|
(1,504.0
|
)
|
(32.2
|
)
|
-
|
1,536.2
|
-
|
|||||||||||||
Proceeds from sale
of class B units
|
686.0
|
-
|
-
|
-
|
686.0
|
|||||||||||||||
Proceeds
from sale of common units, net of related transaction
costs
|
733.6
|
-
|
-
|
-
|
733.6
|
|||||||||||||||
Net Cash
Provided by(Used in) Financing Activities
|
(315.7
|
)
|
(7.7
|
)
|
2,175.5
|
375.4
|
2,227.5
|
|||||||||||||
Decrease
in Cash and Cash Equivalents
|
-
|
(179.2
|
)
|
(0.4
|
)
|
-
|
(179.6
|
)
|
||||||||||||
Cash and Cash Equivalents at Beginning of Period
|
-
|
316.8
|
0.5
|
-
|
317.3
|
|||||||||||||||
Cash and Cash Equivalents at End of
Period
|
$
|
-
|
$
|
137.6
|
$
|
0.1
|
$
|
-
|
$
|
137.7
|
Parent
Guarantor
|
Subsidiary
Issuer
|
Non-guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Boardwalk Pipeline Partners, LP
|
||||||||||||||||
Net Cash Provided by
(Used In) Operating Activities
|
$
|
225.9
|
$
|
(90.7
|
)
|
$
|
344.4
|
$
|
(197.9
|
)
|
$
|
281.7
|
||||||||
Investing
Activities:
|
||||||||||||||||||||
Capital
expenditures
|
-
|
-
|
(1,210.7
|
)
|
0.9
|
(1,209.8
|
)
|
|||||||||||||
Proceeds
from sale of operating assets, net
|
-
|
-
|
28.7
|
-
|
28.7
|
|||||||||||||||
Proceeds
from insurance reimbursements and other recoveries
|
-
|
-
|
1.7
|
-
|
1.7
|
|||||||||||||||
Advances to affiliates,
net
|
(554.6
|
)
|
(1.6
|
)
|
204.4
|
350.9
|
(0.9
|
)
|
||||||||||||
Distribution
from consolidated subsidiary
|
7.1
|
-
|
-
|
(7.1
|
)
|
-
|
||||||||||||||
Investment
in consolidated subsidiary
|
-
|
(135.9
|
)
|
-
|
135.9
|
-
|
||||||||||||||
Net Cash (Used in) Provided
by Investing Activities
|
(547.5
|
)
|
(137.5
|
)
|
(975.9
|
)
|
480.6
|
(1,180.3
|
)
|
|||||||||||
Financing Activities:
|
||||||||||||||||||||
Proceeds
from long-term debt, net of issuance costs
|
-
|
-
|
495.3
|
-
|
495.3
|
|||||||||||||||
Contribution
from parent
|
-
|
-
|
135.9
|
(135.9
|
)
|
-
|
||||||||||||||
Distributions
paid
|
(205.0
|
)
|
(205.0
|
)
|
-
|
205.0
|
(205.0
|
)
|
||||||||||||
Capital
contribution from general partner
|
10.7
|
-
|
-
|
-
|
10.7
|
|||||||||||||||
Advances
from affiliates, net
|
-
|
351.8
|
-
|
(351.8
|
)
|
-
|
||||||||||||||
Proceeds
from sale of common units, net of related transaction
costs
|
515.9
|
-
|
-
|
-
|
515.9
|
|||||||||||||||
Net Cash
Provided by Financing Activities
|
321.6
|
146.8
|
631.2
|
(282.7
|
)
|
816.9
|
||||||||||||||
Decrease
in Cash and Cash Equivalents
|
-
|
(81.4
|
)
|
(0.3
|
)
|
-
|
(81.7
|
)
|
||||||||||||
Cash and Cash Equivalents at Beginning of Period
|
-
|
398.2
|
0.8
|
-
|
399.0
|
|||||||||||||||
Cash and Cash Equivalents at End of
Period
|
$
|
-
|
$
|
316.8
|
$
|
0.5
|
$
|
-
|
$
|
317.3
|
Name
|
Age
|
Position
|
||
Rolf
A. Gafvert
|
56
|
Chief
Executive Officer, President and Director
|
||
Jamie
L. Buskill
|
45
|
Chief
Financial Officer, Senior Vice President and Treasurer
|
||
Brian
A. Cody
|
52
|
Chief
Operating Officer
|
||
Michael
E. McMahon
|
54
|
Senior
Vice President, General Counsel and Secretary
|
||
Arthur
L. Rebell
|
69
|
Director,
Chairman of the Board
|
||
Kenneth
I. Siegel
|
52
|
Director
|
||
William
R. Cordes
|
61
|
Director
|
||
Thomas
E. Hyland
|
64
|
Director
|
||
Jonathan
E. Nathanson
|
48
|
Director
|
||
Mark
L. Shapiro
|
65
|
Director
|
||
Andrew
H. Tisch
|
60
|
Director
|
(i)
|
during
the past three years the director has been an employee, or an immediate
family member has been an executive officer, of
us;
|
(ii)
|
the
director or an immediate family member received, during any twelve month
period within the past three years, more than $120,000 in direct
compensation from us, excluding director and committee fees, pension
payments and certain forms of deferred
compensation;
|
(iii)
|
the
director is a current partner or employee or an immediate family member is
a current partner of a firm that is our internal or external auditor, or
an immediate family member is a current employee of such a firm and
personally works on our audit, or, within the last three years, the
director or an immediate family member was a partner employee of such a
firm and personally worked on our audit within that
time;
|
(iv)
|
the
director or an immediate family member has at any time during the past
three years been employed as an executive officer of another company where
any of our present executive officers at the same time serves or served on
that company’s compensation committee;
or
|
(v)
|
the
director is a current employee, or an immediate family member is a current
executive officer, of a company that has made payments to, or received
payments from, us for property or services in an amount which, in any of
the last three years, exceeds the greater of $1.0 million, or 2% of the
other company’s consolidated gross
revenues.
|
·
|
base
salary;
|
·
|
annual
incentive compensation awards, including cash bonuses and grants of
phantom common units (Phantom Common Units) under our Long-Term Incentive
Plan (LTIP);
|
·
|
annual
grants of phantom general partner units (Phantom GP Units) under our
Strategic Long-Term Incentive Plan (SLTIP);
and
|
·
|
retirement,
medical and related benefits.
|
·
|
Achieving
2009 EBITDA, as defined in Item 6, Non-GAAP Financial
Measure, adjusted for expected unusual items, of $598.8 million and
declaring annual distributions with respect to 2009 of $1.97 per
unit;
|
·
|
Operating
a safe, reliable pipeline system;
|
·
|
Timely
completion of our announced pipeline expansion projects within budget;
and
|
·
|
Contracting
the available capacity of our expansion projects and renegotiating or
replacing expiring contracts on our existing pipelines for longer terms
and at favorable rates.
|
Name
and
Principal
Position
|
Year
|
Salary
(1)
($)
|
Bonus
($)
|
Stock
Awards
(2)
($)
|
Change
in
Pension
Value
and
Nonqualified
Deferred Compensation Earnings
($)
|
All
Other
Compensation
($)
|
Total
($)
|
||||||||||||||||||
Rolf
A. Gafvert, CEO (PEO)
|
|||||||||||||||||||||||||
2009
|
337,500 | 450,000 | - | - | 33,842 | (3) | 821,342 | ||||||||||||||||||
2008
|
325,000 | 300,000 | 1,424,997 | - | 33,589 | 2,083,586 | |||||||||||||||||||
2007
|
323,365 | 300,000 | 1,450,010 | - | 35,360 | 2,108,735 | |||||||||||||||||||
Jamie
L. Buskill, CFO (PFO)
|
|||||||||||||||||||||||||
2009
|
311,538 | 275,000 | - | 91,527 | (4) | 17,085 | (5) | 695,150 | |||||||||||||||||
2008
|
292,500 | 150,000 | 675,000 | 43,464 | 23,934 | 1,184,898 | |||||||||||||||||||
2007
|
225,000 | 225,000 | 600,000 | 46,602 | 14,386 | 1,110,988 | |||||||||||||||||||
Brian
A. Cody, Chief Operating Officer
|
|||||||||||||||||||||||||
2009
|
262,500 | 300,000 | - | - | 28,118 | (6) | 590,618 | ||||||||||||||||||
2008
|
240,000 | 200,000 | 675,000 | - | 27,615 | 1,142,615 | |||||||||||||||||||
2007
|
228,846 | 175,000 | 600,005 | - | 23,107 | 1,026,958 | |||||||||||||||||||
Michael
E. McMahon, Senior Vice President, General Counsel and
Secretary
|
|||||||||||||||||||||||||
2009
|
249,231 | 275,000 | - | - | 26,928 | (7) | 551,159 | ||||||||||||||||||
2008
|
230,769 | 200,000 | 650,000 | - | 20,666 | 1,101,435 | |||||||||||||||||||
2007
|
216,346 | 125,000 | 550,005 | - | 28,938 | 920,289 |
(1)
|
The
2009 payroll cycle contained one additional pay period as compared to
2008, resulting in more salary paid to the Named Executive Officers
in 2009.
|
(2)
|
The
amounts reflected in this column represent the aggregate grant date fair
value for grants during the fiscal year. Note 9 in Item 8 of this Report
contains information regarding the assumptions we made in determining
these values.
|
(3)
|
Includes
matching contributions under 401(k) plan ($14,700), employer contributions
to the Gulf South Money Purchase Plan, club memberships, imputed life
insurance premiums, travel clubs, preferred parking and spouse
travel.
|
(4)
|
Includes
the change in qualified retirement plan account balance ($56,446) and
interest and pay credits for the supplemental retirement plan
($35,081).
|
(5)
|
Includes
matching contributions under 401(k) plan ($14,700), imputed life insurance
premiums and preferred parking.
|
(6)
|
Includes
matching contributions under 401(k) plan ($14,700), employer contributions
to the Gulf South Money Purchase Plan, spouse travel, imputed life
insurance premiums, preferred parking and travel
clubs.
|
(7)
|
Includes
matching contributions under 401(k) plan ($14,700), employer contributions
to the Gulf South Money Purchase Plan, imputed life insurance premiums,
preferred parking and travel clubs.
|
Named
Executive Officer
|
Year
|
Percentage
of Salary and Bonus Paid to Total Compensation
|
||
Rolf
A. Gafvert
|
2009
|
96%
|
||
2008
|
30%
|
|||
2007
|
30%
|
|||
Jamie
L. Buskill
|
2009
|
84%
|
||
2008
|
37%
|
|||
2007
|
41%
|
|||
Brian
A. Cody
|
2009
|
95%
|
||
2008
|
39%
|
|||
2007
|
39%
|
|||
Michael
E. McMahon
|
2009
|
95%
|
||
2008
|
39%
|
|||
2007
|
37%
|
Outstanding
Equity Awards at December 31, 2009
|
|||||||||
Stock
Awards
|
|||||||||
Name
|
Plan
Name
|
Number
of Shares or Units that Have Not Vested
(1)
(#)
|
Market
Value of Shares or Units of Stock that Have not Vested
(2)(3)
($)
|
||||||
Rolf
A. Gafvert
|
LTIP
|
11,981 | 359,789 | ||||||
SLTIP
|
100 | 3,026,798 | |||||||
Jamie
L. Buskill
|
LTIP
|
3,735 | 112,162 | ||||||
SLTIP
|
46 | 1,392,327 | |||||||
Brian
A. Cody
|
LTIP
|
5,368 | 161,201 | ||||||
SLTIP
|
49 | 1,483,131 | |||||||
Michael
E. McMahon
|
LTIP
|
4,123 | 123,814 | ||||||
SLTIP
|
43 | 1,301,523 |
(1)
|
There
were no grants of Phantom Common Units or Phantom GP Units under our LTIP
and SLTIP awarded to Messrs. Gafvert, Buskill, Cody and McMahon in 2009.
On December 16, 2008, Messrs. Gafvert, Buskill, Cody, and McMahon were
awarded grants of Phantom Common Units under our LTIP of 8,715, 3,735,
3,735 and 2,490 and Phantom GP Units under our SLTIP in the amount of 25,
12, 12, and 12. On December 14, 2007, Messrs. Gafvert, Buskill, Cody and
McMahon were awarded grants of Phantom Common Units under our LTIP of
6,532, 0, 3,266 and 3,266 and Phantom GP Units under our SLTIP in the
amount of 25, 12, 10 and 12. On December 20, 2006, Messrs. Gafvert and
Buskill were awarded grants of Phantom Common Units under our LTIP of
6,427 and 1,205 and Phantom GP Units under our SLTIP in the amount of 25
and 10.
|
(2)
|
The
market value per unit reported in the above table is based on the NYSE
closing market price on December 31, 2009 of
$30.03.
|
(3)
|
In
addition to the Phantom Common Units, Messrs. Gafvert, Buskill, Cody and
McMahon have accumulated non-vested amounts related to the DER that are
tandem grants to the Phantom Common Units. Such DER amounts for Messrs.
Gafvert, Buskill, Cody, and McMahon were $29,470, $7,283, $13,521 and
$11,094 in 2009.
|
Option
Exercises and Stock Vested for 2009
|
||||||||||||||||
Stock
Awards
|
||||||||||||||||
Name
|
Number
of LTIP Awards Vesting
(#)
|
Value
Received on Vesting (1)
($)
|
Number
of
SLTIP
Awards Vesting
(#)
|
Value
Received on Vesting
($)
|
||||||||||||
Rolf
A. Gafvert
|
6,479 | 221,063 | - | - | ||||||||||||
Jamie
L. Buskill
|
602 | 21,097 | - | - | ||||||||||||
Brian
A. Cody
|
3,239 | 110,514 | - | - | ||||||||||||
Michael
E. McMahon
|
3,239 | 110,514 | - | - |
(1)
|
The
LTIP awards vested in December 2009 and were paid out as a lump sum cash
payment in January 2010. At no time were units issued to or owned by the
Named Executive Officers.
|
Pension
Benefits for 2009
|
|||||||||||||
Name
|
Plan
Name
|
Number
of Years Credited Service
(#)
|
Present
Value of Accumulated Benefit
($)
|
Payments
During Last Fiscal Year
($)
|
|||||||||
Jamie
L. Buskill
|
TGRP
|
23.3 | 242,555 | - | |||||||||
SRP
|
23.3 | 100,566 | - |
Potential
Payments Upon Termination or Change of Control at December 31,
2009
|
|||||||||||||||||||||
Name
|
Plan
Name
|
Change
of Control
(1)
($)
|
Termination
Other than for Cause
($)
|
Termination
for Cause, or Voluntary Resignation
($)
|
Retirement
(2)
($)
|
Death
or Disability
($)
|
|||||||||||||||
Rolf
A. Gafvert
|
LTIP
(3)
|
389,260 | 389,260 | - | 389,260 | 389,260 | |||||||||||||||
SLTIP
(4)
|
3,026,798 | 3,026,798 | - | 3,026,798 | 3,026,798 | ||||||||||||||||
PTO
(5)
|
- | - | - | - | - | ||||||||||||||||
Total
|
3,416,058 | 3,416,058 | - | 3,416,058 | 3,416,058 | ||||||||||||||||
Jamie
L. Buskill (6)
|
LTIP
(3)
|
119,445 | 119,445 | - | 119,445 | 119,445 | |||||||||||||||
SLTIP
(4)
|
1,392,327 | 1,392,327 | - | 1,392,327 | 1,392,327 | ||||||||||||||||
PTO
(5)
|
11,538 | 11,538 | 11,538 | 11,538 | 11,538 | ||||||||||||||||
Total
|
1,523,310 | 1,523,310 | 11,538 | 1,523,310 | 1,523,310 | ||||||||||||||||
Brian
A. Cody
|
LTIP
(3)
|
174,722 | 174,722 | - | 174,722 | 174,722 | |||||||||||||||
SLTIP
(4)
|
1,483,131 | 1,483,131 | - | 1,483,131 | 1,483,131 | ||||||||||||||||
PTO
(5)
|
- | - | - | - | - | ||||||||||||||||
Total
|
1,657,853 | 1,657,853 | - | 1,657,853 | 1,657,853 | ||||||||||||||||
Michael
E. McMahon
|
LTIP
(3)
|
134,907 | 134,907 | - | 134,907 | 134,907 | |||||||||||||||
SLTIP
(4)
|
1,301,523 | 1,301,523 | - | 1,301,523 | 1,301,523 | ||||||||||||||||
PTO
(5)
|
9,231 | 9,231 | 9,231 | 9,231 | 9,231 | ||||||||||||||||
Total
|
1,445,661 | 1,445,661 | 9,231 | 1,445,661 | 1,445,661 |
(1)
|
The
amounts listed under the “Change of Control” column will apply only in the
event that the Change of Control definition for that particular plan has
been triggered.
|
(2)
|
Retirement
age is defined under the LTIP and SLTIP as age 65 or older, although a
participant in the plan can become fully vested in outstanding awards at
age 60 with Board approval. Retirement of a participant prior to age 60
would result in the forfeiture of outstanding awards. As of December 31,
2009, none of the named executive officers were eligible for retirement as
defined in the LTIP and the SLTIP.
|
(3)
|
LTIP
amounts were determined by multiplying the number of unvested Phantom
Common Units each executive held on December 31, 2009, by the value of our
common units on that date, or $30.03. The resulting number was then added
to the value of the DERs that were associated with the accelerated Phantom
Common Units. As of December 31, 2009, Messrs. Gafvert, Buskill, Cody and
McMahon held Phantom Common Units of 11,981, 3,735, 5,368 and 4,123,
respectively. The amount of DERs accrued for these units were
for Messrs. Gafvert, Buskill, Cody and McMahon, $29,470, $7,283, $13,521
and $11,094, respectively.
|
(4)
|
SLTIP
amounts were determined by multiplying the number of unvested Phantom GP
Units each executive held on December 31, 2009, by the value of each GP
unit on that date ($30,268) based upon full vesting of outstanding awards
and valued using the plan formula value assuming cash distributions made
by the Partnership to our general partner for the four consecutive
quarters ending on December 31, 2009, of $20.0 million and an implied
yield on our common units of 6.59% at December 31, 2009. As of
December 31, 2009, Messrs. Gafvert, Buskill, Cody and McMahon held 100,
46, 49, and 43 Phantom GP Units,
respectively.
|
(5)
|
Includes
earned but unused vacation at December 31,
2009.
|
(6)
|
Mr.
Buskill would also be entitled to receive payment under the SRP six months
after termination for any reason, which amounts are reported in the
Pension Benefits table above.
|
Director
Compensation for 2009
|
||||||||||||
Name
|
Fees
Earned or Paid in Cash
($)
|
Stock
Awards
(1)
($)
|
Total
($)
|
|||||||||
William
R. Cordes
|
36,250 | 10,290 | 46,540 | |||||||||
Thomas
E. Hyland (2)
|
45,000 | 10,290 | 55,290 | |||||||||
Mark
L. Shapiro
|
36,250 | 10,290 | 46,540 |
(1)
|
On
March 5, 2009, Messrs. Cordes, Hyland and Shapiro were each granted 500
common units. The grant date fair value of each unit award,
based on the closing market price of $20.58, was $10,290. Note 9 in Item 8
of this Report contains information regarding the assumptions we made in
determining these values.
|
(2)
|
Chair
of the Audit Committee.
|
Name
of Beneficial Owner
|
Common
Units
Beneficially Owned
|
Percentage of
Common
Units
Beneficially Owned
(1)
|
Class
B
Units
Beneficially Owned
|
Percentage
of
Class
B Units Beneficially Owned
(1)
|
Percentage
of Total Limited Partner Units Beneficially Owned
|
|||||||||||||||
Jamie
L. Buskill
|
- | - | - | - | - | |||||||||||||||
Brian
A. Cody
|
- | - | - | - | - | |||||||||||||||
William
R. Cordes
|
1,500 | * | - | - | * | |||||||||||||||
Rolf
A. Gafvert
|
- | - | - | - | - | |||||||||||||||
Thomas
E. Hyland
|
7,400 | (2) | * | - | - | * | ||||||||||||||
Michael
E. McMahon
|
- | - | - | - | - | |||||||||||||||
Jonathan
E. Nathanson
|
15,000 | * | - | - | * | |||||||||||||||
Arthur
L. Rebell
|
39,083 | (3) | * | - | - | * | ||||||||||||||
Mark
L. Shapiro
|
12,000 | * | - | - | * | |||||||||||||||
Kenneth
I. Siegel
|
- | - | - | - | - | |||||||||||||||
Andrew
H. Tisch
|
81,050 | (4) | * | - | - | * | ||||||||||||||
All
directors and
executive
officers
as
a group
|
156,033 | * | - | - | - | |||||||||||||||
BPHC
(5)
|
114,219,466 | 67 | % | 22,866,667 | 100 | % | 71 | % | ||||||||||||
Loews
Corporation (5)
|
114,219,466 | 67 | % | 22,866,667 | 100 | % | 71 | % |
(1)
|
As
of February 10, 2010, we had 169,721,916 common units
and 22,866,667 class B units issued and
outstanding.
|
(2)
|
400
of these units are owned by Mr. Hyland’s
spouse.
|
(3)
|
32,984
of these units are owned by ARebell, LLC, a limited liability company
controlled by Mr. Rebell.
|
(4)
|
Represents
one quarter of the number of units owned by a general partnership in which
a one-quarter interest is held by a trust of which Mr. Tisch is managing
trustee.
|
(5)
|
Loews
Corporation is the parent company of BPHC and may, therefore, be deemed to
beneficially own the units held by BPHC. The address of BPHC is 9 Greenway
Plaza, Suite 2800, Houston, TX 77046. The address of Loews is 667 Madison
Avenue, New York, New York 10065. Boardwalk GP, an indirect, wholly-owned
subsidiary of BPHC, also holds the 2% general partner interest and all of
our incentive distribution rights. Including the general partner interest
but excluding the impact of the incentive distribution rights, Loews
indirectly owns approximately 72% of our total ownership interests. Our Partnership
Interests in Item 5 contains more information regarding our
calculation of BPHC’s equity
ownership.
|
Plan
category
|
Number
of securities to be issued upon exercise of outstanding options, warrants
and rights
|
Weighted-average
exercise price of outstanding options, warrants and
rights
|
Number
of securities remaining available for future issuance under equity
compensation plan (excluding securities reflected in the first
column)
|
|||
Equity
compensation plans approved by security holders
|
-
|
N/A
|
-
|
|||
Equity
compensation plans not approved by security holders
|
-
|
N/A
|
3,519,500
|
2009
|
2008
|
|||||||
Audit
fees (1)
|
$ | 2.0 | $ | 1.9 | ||||
Audit
related fees (2)
|
0.1 | 0.5 | ||||||
Total
|
$ | 2.1 | $ | 2.4 |
(1)
|
Includes
the aggregate fees and expenses for annual financial statement audit and
quarterly financial statement
reviews.
|
(2)
|
Includes
the aggregate fees and expenses for services that were reasonably related
to the performance of the financial statement audits or reviews described
above and not included under Audit fees above, including, principally,
consents and comfort letters and audits of employee benefits
plans.
|
Additions:
|
||||||||||||||||||||
Description
|
Balance
at Beginning of Period
|
Charged
to Costs and Expenses
|
Other
Additions
|
Deductions
|
Balance
at End of Period
|
|||||||||||||||
Allowance
for doubtful accounts:
|
||||||||||||||||||||
2009
|
$ | 0.3 | $ | 0.3 | $ | - | $ | (0.3 | ) | $ | 0.3 | |||||||||
2008
|
0.4 | - | (0.1 | ) | - | 0.3 | ||||||||||||||
2007
|
2.6 | 2.7 | (4.7 | ) | (0.2 | ) | 0.4 | |||||||||||||
|
||||||||||||||||||||
Inventory
obsolescence:
|
||||||||||||||||||||
2009
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
2008
|
0.1 | - | - | (0.1 | ) | - | ||||||||||||||
2007
|
- | - | 0.1 | - | 0.1 |
Exhibit
Number
|
||
Description
|
||
3.1
|
Certificate
of Limited Partnership of Boardwalk Pipeline Partners, LP (Incorporated by
reference to Exhibit 3.1 to the Registrant’s Registration Statement on
Form S-1, Registration No. 333-127578, filed on August 16,
2005).
|
|
3.2
|
Third
Amended and Restated Agreement of Limited Partnership of Boardwalk
Pipeline Partners, LP dated as of June 17, 2008, (Incorporated by
reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K
filed on June 18, 2008).
|
|
3.3
|
Certificate
of Limited Partnership of Boardwalk GP, LP (Incorporated by reference to
Exhibit 3.3 to the Registrant’s Registration Statement on Form S-1,
Registration No. 333-127578, filed on August 16, 2005).
|
|
3.4
|
Agreement
of Limited Partnership of Boardwalk GP, LP (Incorporated by reference to
Exhibit 3.4 to Amendment No. 1 to the Registrant’s Registration Statement
on Form S-1, Registration No. 333-127578, filed on September 22,
2005).
|
|
3.5
|
Certificate
of Formation of Boardwalk GP, LLC (Incorporated by reference to Exhibit
3.5 to the Registrant’s Registration Statement on Form S-1, Registration
No. 333-127578, filed on August 16, 2005).
|
|
3.6
|
Amended
and Restated Limited Liability Company Agreement of Boardwalk GP, LLC
(Incorporated by reference to Exhibit 3.6 to Amendment No. 4 to
Registrant’s Registration Statement on Form S-1, Registration No.
333-127578, filed on October 31, 2005).
|
|
4.1
|
Amended
and Restated Registration Rights Agreement dated June 26 2009, by and
between Boardwalk Pipeline Partners, LP and Boardwalk Pipelines Holding
Corp. (Incorporated by reference to Exhibit 4.1 to the Registrant’s
Current Report on Form 8-K filed on June 26, 2009).
|
|
4.2
|
Indenture
dated July 15, 1997, between Texas Gas Transmission Corporation (now known
as Texas Gas Transmission, LLC) and The Bank of New York, as Trustee
(Incorporated by reference to Exhibit 4.1 to Texas Gas Transmission
Corporation’s Registration Statement on Form S-3, Registration No.
333-27359, filed on May 19, 1997).
|
|
4.3
|
Indenture
dated as of May 28, 2003, between TGT Pipeline, LLC and The Bank of New
York, as Trustee (Incorporated by reference to Exhibit 3.6 to TGT
Pipeline, LLC’s (now known as Boardwalk Pipelines, LP) Registration
Statement on Form S-4, Registration No. 333-108693, filed on September 11,
2003).
|
|
4.4
|
Indenture
dated as of May 28, 2003, between Texas Gas Transmission, LLC and The Bank
of New York, as Trustee (Incorporated by reference to Exhibit 3.5 to
Boardwalk Pipelines, LLC’s (now known as Boardwalk Pipelines, LP)
Registration Statement on Form S-4, Registration No. 333-108693, filed on
September 11, 2003).
|
4.5
|
Indenture
dated as of January 18, 2005, between TGT Pipeline, LLC and The Bank of
New York, as Trustee, (Incorporated by reference to Exhibit 10.1 to TGT
Pipeline, LLC’s (now known as Boardwalk Pipelines, LP) Current Report on
Form 8-K filed on January 24, 2005).
|
|
4.6
|
Indenture
dated as of January 18, 2005, between Gulf South Pipeline Company, LP and
The Bank of New York, as Trustee (Incorporated by reference to Exhibit
10.2 to Boardwalk Pipelines, LLC’s (now known as Boardwalk Pipelines, LP)
Current Report on Form 8-K filed on January 24, 2005).
|
|
4.7
|
Indenture
dated as of November 21, 2006, between Boardwalk Pipelines, LP, as issuer,
the Registrant, as guarantor, and The Bank of New York Trust Company,
N.A., as Trustee (Incorporated by reference to Exhibit 4.1 to the
Registrant’s Current Report on Form 8-K filed on November 22,
2006).
|
|
4.8
|
Indenture
dated August 17, 2007, between Gulf South Pipeline Company, LP and the
Bank of New York Trust Company, N.A. therein (Incorporated by reference to
Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on August
17, 2007).
|
|
4.9
|
Indenture
dated August 17, 2007, between Gulf South Pipeline Company, LP and the
Bank of New York Trust Company, N.A. (Incorporated by reference to Exhibit
4.2 to the Registrant’s Current Report on Form 8-K filed on August 17,
2007).
|
|
4.10
|
Indenture
dated March 27, 2008, between Texas Gas Transmission, LLC and the Bank of
New York Trust Company, N.A. (Incorporated by reference to Exhibit 4.1 to
the Registrant’s Current Report on Form 8-K filed on March 27,
2008).
|
|
4.11
|
Subordination
Agreement, dated as of May 1, 2009, among Boardwalk Pipelines Holding
Corp., as Subordinated Creditor, Wachovia Bank, National Association, as
Senior Creditor Representative, and Boardwalk Pipelines, LP, as Borrower
(Incorporated by reference to Exhibit 4.1 to the Registrant’s Current
Report on Form 8-K filed on May 5, 2009).
|
|
4.12
|
Indenture
dated August 21, 2009, by and among Boardwalk Pipelines, LP, as issuer ,
Boardwalk Pipeline Partners, LP, as guarantor, and The Bank of New York
Mellon Trust Company, N.A., as trustee (Incorporated by reference to
Exhibit 4.1 to Boardwalk Pipeline Partners, LP’s Current Report on Form
8-K, filed on August 21, 2009).
|
|
4.13
|
First
Supplemental Indenture dated August 21, 2009, by and among Boardwalk
Pipelines, LP, as issuer , Boardwalk Pipeline Partners, LP, as guarantor,
and The Bank of New York Mellon Trust Company, N.A., as trustee
(Incorporated by reference to Exhibit 4.2 to Boardwalk Pipeline Partners,
LP’s Current Report on Form 8-K, filed on August 21, 2009).
|
|
10.1
|
Amended
and Restated Revolving Credit Agreement, dated as of June 29, 2006, among
Boardwalk Pipelines, LP, Boardwalk Pipeline Partners, LP, the several
banks and other financial institutions or entities parties to the
agreement as lenders, the issuers party to the agreement, Wachovia Bank,
National Association, as administrative agent for the lenders and the
issuers, Citibank, N.A., as syndication agent, JPMorgan Chase Bank, N.A.,
Deutsche Bank Securities, Inc. and Union Bank of California, N.A., as
co-documentation agents, and Wachovia Capital Markets LLC and Citigroup
Global Markets Inc., as joint lead arrangers and joint book managers
(Incorporated by reference to Exhibit 10.1 to the Registrant’s Current
Report on Form 8-K filed on July 5, 2006).
|
|
10.2
|
Amendment
No. 1 to Amended and Restated Revolving Credit Agreement, dated as of
April 2, 2007, among the Registrant, Boardwalk Pipelines, LP, Texas Gas
Transmission, LLC and Gulf South Pipeline Company, LP, each a wholly-owned
subsidiary of the Registrant, as Borrowers, and the agent and lender
parties identified therein (Incorporated by reference to Exhibit 10.1 to
the Registrant’s Current Report on Form 8-K filed on April 5,
2007).
|
|
10.3
|
Amendment
No. 2 to Amended and Restated Revolving Credit Agreement, dated as of
November 27, 2007, among the Registrant, Boardwalk Pipelines, LP, Texas
Gas Transmission, LLC and Gulf South Pipeline Company, LP, and the agent
and lender parties identified therein (Incorporated by reference to
Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on
November 29, 2007).
|
|
10.4
|
Amendment
No. 3 to Amended and Restated Revolving Credit Agreement, dated as of
March 6, 2008, among the Registrant, Boardwalk Pipelines, LP, Texas Gas
Transmission, LLC and Gulf South Pipeline Company, LP, and the agent and
lender parties identified therein. (Incorporated by reference to Exhibit
10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on April 29,
2008).
|
10.5
|
Services
Agreement dated as of May 16, 2003, by and between Loews Corporation
and Texas Gas Transmission, LLC. (Incorporated by reference to Exhibit
10.8 to Amendment No. 3 to the Registrant’s Registration Statement on Form
S-1, Registration No. 333-127578, filed on October 24, 2005).
(1)
|
|
**10.6
|
Boardwalk
Pipeline Partners, LP Long-Term Incentive Plan (Incorporated by reference
to Exhibit 10.9 to Amendment No. 4 to the Registrant’s Registration
Statement on Form S-1, Registration No. 333-127578, filed on October 31,
2005).
|
|
**10.7
|
Form
of Phantom Unit Award Agreement under the Boardwalk Pipeline Partners, LP
Long-Term Incentive Plan (Incorporated by reference to Exhibit 10.10 to
the Registrant’s 2005 Annual Report on Form 10-K filed on March 16,
2006).
|
|
**10.8
|
Boardwalk
Pipeline Partners, LP Strategic Long-Term Incentive Plan (Incorporated by
reference to Exhibits 10.1 and 10.2 to the Registrant’s Current Report on
Form 8-K filed on July 28, 2006).
|
|
**10.9
|
Form
of GP Phantom Unit Award Agreement under the Boardwalk Pipeline Partners,
LP Strategic Long-Term Incentive Plan (Incorporated by reference to
Exhibits 10.1 and 10.2 to the Registrant’s Current Report on Form 8-K
filed on July 28, 2006).
|
|
10.10
|
Loan
Agreement, dated December 1, 2008, Mississippi Business Finance
Corporation and Gulf South Pipeline Company, LP (Incorporated by reference
to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed on
December 9, 2008).
|
|
10.11
|
Bond
Purchase Agreement, dated December 1, 2008, among Boardwalk Pipelines, LP,
Mississippi Business Finance Corporation and Gulf South Pipeline Company,
LP (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current
Report on Form 8-K filed on December 9, 2008).
|
|
10.12
|
Subordinated
Loan Agreement dated as of May 1, 2009 between Boardwalk Pipelines, LP, as
Borrower, and Boardwalk Pipelines Holding Corp., as Lender (Incorporated
by reference to Exhibit 10.1 to the Registrant’s Current Report on Form
8-K filed on May 5, 2009).
|
|
*21.1
|
List
of Subsidiaries of the Registrant.
|
|
*23.0
|
Consent
Of Independent Registered Public Accounting Firm.
|
|
*31.1
|
Certification
of Rolf A. Gafvert, Chief Executive Officer, pursuant to Rule 13a-14(a)
and Rule 15d-14(a).
|
|
*31.2
|
Certification
of Jamie L. Buskill, Chief Financial Officer, pursuant to Rule 13a-14(a)
and Rule 15d-14(a).
|
*32.1
|
Certification
of Rolf A. Gafvert, Chief Executive Officer, pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002.
|
|
*32.2
|
Certification
of Jamie L. Buskill, Chief Financial Officer, pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002.
|
|
101.INS
|
XBRL
Instance Document
|
|
101.SCH
|
XBRL
Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL
Taxonomy Calculation Linkbase Document
|
|
101.DEF
|
XBRL
Taxonomy Extension Definitions Document
|
|
101.LAB
|
XBRL
Taxonomy Label Linkbase Document
|
|
101.PRE
|
XBRL
Taxonomy Presentation Linkbase Document
|
|
*
Filed herewith
**
Management contract or compensatory plan or arrangement
(1) The
Services Agreements between Gulf South Pipeline Company, LP and Loews
Corporation and between Boardwalk Pipelines, LP (formerly known as
Boardwalk Pipelines, LLC) and Loews Corporation are not filed because they
are identical to exhibit 10.9 except for the identities of Gulf South
Pipeline Company, LP and Boardwalk Pipelines, LLC and the date of the
agreement.
|
Boardwalk
Pipeline Partners, LP
|
||||
By:
Boardwalk GP, LP
|
||||
its
general partner
|
||||
By:
Boardwalk GP, LLC
|
||||
its
general partner
|
||||
Dated:
February 16, 2010
|
By:
|
/s/ Jamie L.
Buskill
|
||
Jamie
L. Buskill
|
||||
Senior
Vice President, Chief Financial Officer and
Treasurer
|
Dated: February
16, 2010
|
/s/ Rolf A.
Gafvert
|
|
Rolf
A. Gafvert
President,
Chief Executive Officer and Director
(principal
executive officer)
|
||
Dated: February
16, 2010
|
/s/ Jamie
L.
Buskill
|
|
Jamie
L. Buskill
Senior
Vice President, Chief Financial Officer and Treasurer
(principal
financial officer)
|
|
|
Dated: February
16, 2010
|
/s/ Steven A.
Barkauskas
|
|
Steven
A. Barkauskas
Vice
President, Controller and Chief Accounting Officer
(principal
accounting officer)
|
|
|
Dated: February
16, 2010
|
/s/ William R.
Cordes
|
|
William
R. Cordes
Director
|
||
Dated: February
16, 2010
|
/s/ Thomas
E.
Hyland
|
|
Thomas
E. Hyland
Director
|
||
Dated: February
16, 2010
|
/s/ Jonathan E.
Nathanson
|
|
Jonathan
E. Nathanson
Director
|
||
Dated: February
16, 2010
|
/s/ Arthur
L.
Rebell
|
|
Arthur
L. Rebell
Director
|
||
Dated: February
16, 2010
|
/s/ Mark L.
Shapiro
|
|
Mark
L. Shapiro
Director
|
||
Dated: February
16, 2010
|
/s/ Kenneth I.
Siegel
|
|
Kenneth
I. Siegel
Director
|
||
Dated: February
16, 2010
|
/s/ Andrew
H.
Tisch
|
|
Andrew
H. Tisch
Director
|