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Boardwalk Pipeline Partners, LP (NYSE:BWP)

Q3 2012 Earnings Call

October 29, 2012 9:00 am ET

Executives

Molly Ladd Whitaker

Stanley C. Horton - Chief Executive Officer of Boardwalk GP LLC, President of Boardwalk GP LLC and Director of Boardwalk GP LLC

Jamie L. Buskill - Chief Financial Officer of Boardwalk GP LLC, Senior Vice President of Boardwalk GP LLC and Treasurer of Boardwalk GP LLC

Analysts

Harry Mateer - Barclays Capital, Research Division

Paul Jacob

John Edwards - Crédit Suisse AG, Research Division

Robert J. Schweich - Burnham Securities Inc.

Elvira Scotto - RBC Capital Markets, LLC, Research Division

Curt N. Launer - Deutsche Bank AG, Research Division

Yves Siegel

Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Q3 2012 Boardwalk Pipeline Partners Earnings Conference Call. My name is Marie, and I will be your operator today. [Operator Instructions] As a reminder, ladies and gentlemen, this conference is being recorded. And now, I would like to turn the call over to Molly Whitaker, Director of Investor Relations and Corporate Communications. Please proceed, ma'am.

Molly Ladd Whitaker

Thank you, Marie. Good morning, everyone, and welcome to the third quarter 2012 earnings call for Boardwalk Pipeline Partners, LP. I am Molly Whitaker, and I am pleased to be joined today by Mr. Stan Horton, our President and CEO; and Mr. Jamie Buskill, our CFO.

If you would like a copy of the earnings release associated with this call, please download it from our website at www.bwpmlp.com.

Following our prepared remarks this morning, we will turn the call over for your questions. We would like to remind you that this conference call will include statements that are forward-looking in nature. Statements in this earnings call related to matters that are not historical facts are forward-looking statements. These statements are based on management's beliefs and assumptions using currently available information and expectations. Actual results achieved by the company may differ materially from those projected in any forward-looking statement. The company expressly disclaims any obligation to update or revise any forward-looking statements made during this call.

I'd also like to remind you that during this call today, we may discuss certain non-GAAP financial measures, such as EBITDA and distributable cash flow. With regard to such financial measures, please refer to our earnings release for a reconciliation to the most comparable GAAP measures.

Now I'd like to turn the call over to Stan Horton.

Stanley C. Horton

Thank you, Molly, and good morning, everyone. I hope you've had a chance to review the earnings press release that we issued this morning. In addition to reporting earnings, we also announced a quarterly distribution of $0.5325 per unit or $2.13 annualized.

Since our second quarter call, we've been busy. We announced and closed on the acquisition of PL Midstream, we executed firm agreements on our Southeast market expansion project and we continue to make progress on our financial metrics and improve capital structure.

Turning now to an update on our growth activities. Since I joined Boardwalk, we've been communicating that part of our strategy is to diversify into the midstream energy businesses beyond our core natural gas pipelines and storage. Our first major initiative was forming Boardwalk Field Services in the fourth quarter of 2011, which expanded our footprint into the gas gathering and processing businesses.

Earlier this month, we acquired PL Midstream, which provides transportation and storage services of natural gas liquids. In addition to diversifying Boardwalk into the liquids transportation and storage business, this acquisition is strategic for a number of other reasons, including, first, the assets are high-quality and strategically located to serve the attractive and rapidly growing petrochemical industry in Southern Louisiana area. Second, PL Midstream has a strong growth record and a number of ongoing growth projects. The senior management has joined Boardwalk team and will continue to manage the company, which we have renamed Boardwalk Louisiana Midstream, LLC.

Allen Kirkley, who had been the President and CEO of PL Midstream, has joined us as the President of Boardwalk Louisiana Midstream; and Kevin Miller, who had been the Chief Operating Officer of PL Midstream, has joined us as Senior Vice President and Chief Operating Officer of Boardwalk Louisiana Midstream.

Prior to joining PL Midstream in 2009, Allen spent 29 years at Shell, including serving as the Regional President of Shell Chemicals for the U.S. operations. Kevin has more than 25 years of industry experience and prior to joining PL Midstream in 2009, he was the Regional Manager of Upstream Development at Shell Global Solutions.

Third, like Boardwalk's other operations, PL Midstream's contracts are long term and fee-based. In fact, approximately 66% of annual revenues are derived from contracted minimum revenues, and the average contract life is 10 years.

Let me provide a quick overview of the business. For those of you who are not yet familiar with it, Boardwalk Louisiana Midstream provides salt-dome storage, pipeline transportation, fractionation and brine supply services for producers and consumers of petrochemicals, natural gas liquids and natural gas in South Louisiana at 2 hubs, the Sulphur Hub, in Lake Charles area, and the Choctaw Hub, in the Mississippi River industrial corridor. Boardwalk Louisiana Midstream's assets represent approximately 53.5 million barrels of salt-dome storage capacity, including 11.2 billion cubic feet of working natural gas storage capacity, significant brine supply infrastructure and more than 240 miles of pipeline transportation assets, including the most extensive ethylene distribution system in Louisiana.

Now I'd like to review our organic growth projects, starting with our Southeast market expansion project. In August, we announced that we had received binding commitments for our Southeast market expansion and that we would move forward with the project, which will allow us to transport approximately an additional 450 million cubic feet a day of natural gas into the growing areas of demand in the Southeast region in the United States, including markets in Mississippi, Alabama and Florida.

I am pleased to announce that this project is now fully contracted, with 10-year firm agreements with primarily electric generation and industrial customers. We are currently in the pre-filing process with the FERC, we are targeting construction to begin in early 2014 and for the project to go into service by late 2014. The project cost is approximately $300 million. This project would not have been possible without last year's acquisition of HP Storage. HP Storage not only offers a high-turn salt-dome storage service to our Southeast market expansion customers, it also provides an existing 105-mile, 36-inch diameter pipeline that can be used for the expansion project and significantly reduces the amount of new pipe that needs to be installed to reach our new markets.

In addition, the customers of the Southeast market expansion project will be able to utilize Gulf South's 42-inch diameter East Texas pipeline to access multiple mid continent sources of natural gas within the Perryville exchange.

The HP storage salt cavern expansion is on schedule for gas injections to begin in the second quarter of 2013, and the new cavern has been leached to approximately 80% of its designed volume. When complete, the cavern will add approximately 5 billion cubic feet of working gas capacity. This incremental storage capacity has been sold for the first year, and the new cavern is -- the first year, the new cavern is scheduled to go into service.

The construction of our Eagle Ford expansion project is proceeding as planned. We are on budget, and the project is expected to go into service in the first quarter of 2013.

Construction of the Karnes County lateral is underway, and we have begun laying pipe in the ground. We've also broken ground on the Flag City Processing Plant, with the foundation work nearly complete.

The acquisition of PL Midstream, together with the organic growth projects, once completed, will result in approximately $1.2 billion of new assets for Boardwalk.

That concludes my comments, and I will now turn the call over to Jamie.

Jamie L. Buskill

Thank you, Stan, and good morning. Operating revenues for the third quarter were $271 million, which is slightly higher than the $269 million reported for the comparable period in 2011. Net of fuel and transportation expense, revenues for the quarter were $252 million, an increase of $10 million or 4% from $242 million for the comparable period in 2011. The increase is driven by the revenues associated with the acquisition of HP Storage, which contributed $12 million in net revenues for the quarter and increased park and lending revenues from improved market condition. The increase was partially offset by lower interruptible revenues from reduced basis spreads.

Natural gas throughput for the quarter was 596 TBtu, bringing our year-to-date throughput to 1,891 TBtu.

Turning now to operating expenses. We reported operating expenses of $168 million for the quarter, a decrease of $9 million or 5% from $177 million for the comparable period in 2011. The primary drivers for the decrease were due to lower expenses related to maintenance project costs, mainly due to timing, and lower administrative and general expenses related to cost management activities.

We have been focused on reducing our G&A cost, including the elimination or restructuring of contracts with outside services providers and the reduction and realignment of senior management. The decreases were partially offset by operating expenses incurred by HP Storage at $6 million. The 2011 period was favorably impacted by $6 million in gains on the sale of storage gas.

EBITDA for the quarter was $163 million, an increase of $15 million or 10% from $148 million for the comparable period in 2011. EBITDA for the quarter was primarily impacted by the revenue and expense drivers previously discussed.

Net income for the quarter was $59 million, an increase of $12 million or 25% from $47 million for the comparable period last year. We generated $98 million of distributable cash for the quarter. This compares to $64 million generated in the third quarter of 2011, an increase of 53%.

Turning now to liquidity. Since our last earnings call, we have raised approximately $616 million in equity, bringing the total equity raised this year to approximately $866 million.

In addition, this year, we issued $300 million in 10-year 4% notes at our Gulf South subsidiary and entered into a $225 million term loan at PL Midstream.

In total, through October, we have raised approximately $1.4 billion in capital, which we used to purchase the remaining interest in HP Storage for $285 million, repaid the $200 million term loan at HP Storage, purchased PL Midstream for $625 million and retired $225 million, 5.75% notes at Gulf South that matured in August.

From a financial standpoint, these actions have reduced our debt-to-EBITDA ratios considerably since the beginning of the year.

As of September 30, outstanding borrowing under our revolving credit facility was $350 million, with an average borrowing capacity -- available borrowing capacity at $650 million.

Growth capital expenditures were $30 million in the third quarter. We expect our 2012 growth capital expenditures to be approximately $200 million, which includes approximately $20 million for the Boardwalk Louisiana Midstream growth projects. Maintenance capital was $15 million for the quarter compared to $19 million in the third quarter 2011. Our spending target for maintenance capital remains consistent with previous estimates provided.

That concludes my remarks. I will now turn the call over to the operator for questions.

Question-and-Answer Session

Operator

[Operator Instructions] And our first question comes from the line of Harry Mateer from Barclays.

Harry Mateer - Barclays Capital, Research Division

Jamie, first question. Can you just give us the number on total debt at the end of 3Q? And then second question, can you just talk a little bit about how tariffs on rollover transportation contracts might have trended during the quarter? And does that trend, similar to last few quarters, accelerating or decelerating?

Jamie L. Buskill

Okay. As far as total debt, total debt at the end of the quarter was $3,164,000,000, and the equity was $3,625,000,000. As relating to contract renewals, the second part of that question, for 2012, as we stated before, the contract renewals are basically flat to what the -- came to us apt in prior periods. But you may recall, during the last earnings call, Stan talked about the current market dynamics and the impact it may have on our firm transportation revenues beyond 2012. And as we start to look at 2013, the amount of contracted capacity coming up for renewal is higher than in recent years, as we start to experience contract renewals related to some of our earlier expansion projects on our Gulf South system. And since the inception of those contracts, the basis spreads have compressed significantly. So although we can't really predict the ultimate outcome for contract renewals in 2013 at this time, we do expect that the revenues earned from these contracts in 2013 will be less than what they've been previously. Now as we've outlined in our strategy, what we've been trying to do is grow the end-use market on both our Gulf South and Texas Gas pipelines, and we'll utilize some of that capacity as those contracts come on. And those contracts include the initiatives underway regarding Texas and Louisiana gas-fired generation projects, the Southeast market expansion project that Stan mentioned earlier.

Operator

And our next question comes from the line of Paul Jacob from Raymond James.

Paul Jacob

Just looking at the PL Midstream acquisition and the expanded growth opportunities there that you kind of highlighted during your comments, how do you think about CapEx in 2013, given that expanded portfolio of growth and then heading into 2014?

Jamie L. Buskill

We really haven't given guidance yet on 2013. That's something we'll probably do on our fourth quarter earnings call. But it does give us opportunity to grow that asset. As Stan mentioned, we've got a few projects underway today, and we think there'll be others that come in the future as well.

Paul Jacob

Okay. And then I guess would it be fair to say that it's going to be similar to what it was in 2012 or nothing?

Jamie L. Buskill

I'd really rather not comment. We just got that dropped down. We're integrating the asset. We will provide more color to the future growth on that, probably again, in the fourth quarter earnings call.

Paul Jacob

Okay. And then just to make sure that I understand this. So the maintenance CapEx that you're targeting for 2012 is in line with the $91 million that you've said prior?

Jamie L. Buskill

Yes, that's correct. We still think that's a good estimate for the year, and I think we're about $54 million at the end of the third -- or $51 million at the end of the 9 months.

Paul Jacob

Okay. And then on the Southeast market expansion, are there further opportunities to extend your footprint for gas-fired power or is this kind of the majority of what you guys are looking at right now?

Stanley C. Horton

No. We have other opportunities. In fact, this project can easily be expanded up to about 750 million cubic feet a day, which is some addition of compression facilities on it. But right now, the firm market commitments we have are the 450 million a day, but it does have the ability to be upsized to the extent that the market asks for that additional service.

Operator

And our next question comes from John Edwards from Crédit Suisse.

John Edwards - Crédit Suisse AG, Research Division

Just, Jamie, I didn't catch the gas volume throughput number. Could you repeat that?

Jamie L. Buskill

Yes. The throughput number for the quarter was 596 TBtu, and year-to-date, that brings us to 1,891 TBtu.

John Edwards - Crédit Suisse AG, Research Division

Okay. And then can you talk at all about kind of the amount of projects that are under evaluation? I mean, I know you're not commenting on CapEx numbers, but if you can just give us an idea of maybe the kind of projects you might be considering in terms of what that potential backlog might be.

Stanley C. Horton

We really like to only talk about those projects that have been approved by our board and that we've announced. We look at a number of things, from acquisitions to new projects all the time, and to comment on those is just not something we do until the project comes to fruition and our board approved it.

John Edwards - Crédit Suisse AG, Research Division

Okay. And then could you -- maybe could you talk a little bit about where things -- I mean, you held distribution last quarter and this quarter. Where -- what's the latest thought process on your distribution policy?

Stanley C. Horton

We look at the distribution each and every quarter before we make a recommendation to the board on what we ought to be doing for that quarter, and we look at a number of things. I mean, we look at current earnings, we look at the future forecast, we look at our capital needs within the company, our debt-to-EBITDA ratios, our coverage ratios. So there's a lot of things that we evaluate before we make a recommendation to our board. We look at it on a quarter-by-quarter basis, and that's -- and we just aren't giving any guidance on when we might change that distribution. It's a quarter-by-quarter analysis that we do.

John Edwards - Crédit Suisse AG, Research Division

Okay. Fair enough. And then as far as trends in parking and lending, what's your thoughts regarding that outlook?

Stanley C. Horton

Well, the spreads right now have come down, but fortunately, with the spreads that have widened up in 2012, we did get a lot of park and lending business done in 2012, which determined that service extends on into 2013. So a lot of the power revenue that we'll have in 2013 is already under contract. We still have some space to contract. Spreads have come down from what they were in 2012, but what we have seen is it's pretty volatile. A lot of it is depending what kind of storage that we wind up with as we go into the winter, the severity of the winter that we have and what storage levels are like when we come out of the winter. So if we're anywhere like last year, PAL will be very strong. If it's a very, very cold winter and the spreads contract, PAL will be less than strong. But again, a good portion of our 2013 was contracted for in 2012, as we look at putting 12-month PAL service in.

John Edwards - Crédit Suisse AG, Research Division

Have you seen any kind of firming up in the rates? I mean, I realize you've got most of yours under contract, but have you seen any firming up in pricing?

Stanley C. Horton

Really, the PAL moves almost on a daily basis. I mean -- and so much of it is based upon what people's perceptions of where storage is going to be and the winter weather. I mean, I've seen these spreads change just because somebody's come up with a new forecast of whether it's going to be cold in January and February or whether it's going to be cold in November and December. So it's pretty volatile. So the only thing I can say is what I've said. I mean, the spreads change just almost daily and do change daily, and we watch it. We've got a good pricing desk, and they take advantage of when the spreads get to the point where we think we ought to put some additional contracts in place.

Jamie L. Buskill

And John, I'll just point you to the income statement. If you look at park and lending for the quarter, we're up about 4x where we were third quarter of last year. And for the 9 months, we're running more longer historical average numbers than what we saw last year.

Operator

And our next question comes from the line of Robert Schweich from Burnham Securities.

Robert J. Schweich - Burnham Securities Inc.

I want to commend you on the extent to which you've diversified your business today, and I appreciate your explanations today. I have 2 questions. First, I wonder if you would analyze the decline in gas transportation in the third quarter in greater detail for us. And second, and this may be a little bit more difficult for you to answer, but do you expect that the impact -- the full year impact of your various capital programs and diversification in 2013, will offset the adverse effect of a compression in spreads?

Jamie L. Buskill

I'll handle the first part of that question. When you look at our gas transportation line for the quarter, it appears on a gross revenue basis that revenues were down approximately $10 million. But you really have to look at the fuel and gas transportation expense line and net those out because there's a component that we collect that's fuel revenue, and there's -- for the most part, it's offset in fuel expense. And because gas prices are lower this year, that's reflecting a lower revenue. So expenses were down. Fuel and gas transportation expenses were down approximately $8 million. So if you offset that in that transportation line, you'll see we're down about $3 million to $4 million, and most of that was related to interruptible transportation.

Stanley C. Horton

And can you repeat the second part of your question, please?

Robert J. Schweich - Burnham Securities Inc.

Yes. Do you expect that the full year effect and -- of your capital programs and your acquired -- newly acquired businesses, will offset the negative effect of compression in spreads?

Stanley C. Horton

Well, as you know, we don't offer guidance in -- on earnings guidance into 2013. So I can't answer that with a great degree of specificity. But I can say this, one of the reasons that we wanted to diversify our business is where we would have more tools to be able to counteract weaknesses in one business's with the strength in the other businesses. Certainly, right now, when you look at liquids prices, it certainly is helping the petrochemical business, and we expect good growth in our recent acquisition of the company that we're now calling Boardwalk Louisiana Midstream. We will have our fuel services business coming on in 2013, and a couple of the smaller pipeline projects will be coming on in 2013, like the cavern expansion at HP Storage. The larger one is not due to hit into 2014. So all of those things will help and will contribute to earnings in 2013.

Robert J. Schweich - Burnham Securities Inc.

Could you comment further on, going out to 2014, the extent of the renewables contracts coming up? Is it going to also be a fairly big number like in 2013?

Jamie L. Buskill

One reason we really can't is a lot will depend on how the 2013 renewals go because what happens is some of the 2013 renewals may renew just for a year, which will put those renewals back into play in the '14 time period. So when you look out, the renewals generally are -- look lower than what they ultimately end up being because -- as you handle your current contracts that are coming due.

Stanley C. Horton

One of the things that the Southeast expansion project does for us, and it's an important thing it does for us, is not only are we going to move another 450 million cubic feet a day into that Southeastern marketplace, but that 450 million a day will put increased utilization across our pipeline systems, as people look to buy gas at the various supply basins that our pipelines connect to. So any time that we do a project like this, we are picking up throughput across our system. Any time you pick up throughput across your system, it's going to have some impact on prices.

Operator

And our next question comes from the line of Elvira Scotto from RBC.

Elvira Scotto - RBC Capital Markets, LLC, Research Division

A couple of questions for me. First, on the PL Midstream acquisition, how long do you think the integration process will take? What's involved? And then number 2 on that, are there any potential synergies that you see?

Stanley C. Horton

The transition is almost complete. It was the smoothest transition that I've seen anyone go through, and I've been through a lot of these things during my career. There's some minor things to do, but essentially, the transition is over. Jamie has all of the administration functions of Boardwalk under him right now, and so it's really under his leadership and the leadership of Allen Kirkley that everything went so smoothly. As I said, there's some minor things that need to be done, but that's -- it's basically over with. So -- and having Allen and Kevin both come over has been a big, big help in having this transition run smoothly and having the business just continue to operate without any hiccups whatsoever during the transition period.

Elvira Scotto - RBC Capital Markets, LLC, Research Division

Okay. Are there any potential synergies that you see?

Stanley C. Horton

Well, yes, we do. They do have some natural gas, storage assets. A lot of those natural gas, storage assets, we'll start pricing those from our pricing desk, and we are looking at opportunities now to have those storage assets combined into our pipeline system. We haven't made any decision on doing that. And as our commercial people continue to work together, they are finding other potential synergies, none of which we are ready to discuss publicly, but some of them could be very exciting.

Elvira Scotto - RBC Capital Markets, LLC, Research Division

Great. And then on the expense side, I think you had mentioned that there was some maintenance -- project maintenance expense that would lower, and that was a timing issue. Does that come back?

Jamie L. Buskill

We anticipate on the operation and maintenance side that will come into our targets that we talked about earlier. We may be slightly below on the expense side because we did have some realignment activities in that area, but it's not going to be anything material.

Operator

And our next question comes from the line of Curt Launer from Deutsche Bank.

Curt N. Launer - Deutsche Bank AG, Research Division

I'd like to extend the conversation a little bit relative to distribution coverage on the comments that you made coming out of the second quarter as well. The caution you took at that time was looking at the park and lending business. Hopefully, that would get better. It seems like it has. Now we can look ahead, I think, to 2013 and include the ethylene business in Boardwalk Louisiana Midstream and talk about the commodity environment a little bit and see whether or not that's the kind of situation that will allow you to get back to the one-to-one coverage ratio that you've talked about before.

Jamie L. Buskill

Well, from a coverage -- pure coverage ratio standpoint, if you look this year -- first of all, you've got to remember, for those not familiar with our company, we have seasonality in our revenues. So you really have to look at the entire year when looking at coverage because, typically, the second and third quarters are our lower quarters from a revenue standpoint, and our first and fourth quarters typically are our strongest quarters. But if you look at where we are through the 9 months and compare that through where we were last year at the time, you'll see our coverage has much more improved, and I'm pretty pleased at the progress we've made there. I'll speak to -- I'll reiterate what Stan said earlier, really can't comment to looking forward. That's something that's -- as far as distribution goes, that's a decision made by our board, and we don't provide guidance related to earnings. So it's about all we can say about it at this time.

Operator

And our next question comes from Yves Siegel from Neuberger Berman.

Yves Siegel

Just as a quick one. Stan, you mentioned that since you took over, you've spent -- Boardwalk has spent about $1.2 billion. When you think about the $1.2 billion that have been spent, what percentage of that do you think is actually contributing to EBITDA?

Stanley C. Horton

Well, first of all, let me correct the statement. The $1.2 billion that I talked about was the acquisition of PL Midstream and the projects that we have on the board, some of which will come in, in 2013 and 2014. If you look at what we've done since I've been here, we've completed 2 acquisitions. If you add them both up, it's about $1.1 billion. And both of those will contribute and have been -- will contribute to earnings in 2013. We've been getting contributions from HP Storage. We'll pick up contributions from PL Midstream in the fourth quarter of this year and on into 2013. So of the $1.1 billion of acquisitions, we are having contributions now. The projects that I talked about, the HP Storage cavern, will contribute to earnings in 2013. We previously have talked about $50 million worth of expansion projects having to do with new electric generation load, one in Texas and one in Louisiana. But we'll start getting some earnings impact in the latter part of 2013 and just about all of 2014. The Southeast expansion project won't contribute to earnings until the latter part of 2014 when it goes into service. So just kind of a portfolio here of stuff. If you add it all up, it's about $1.8 billion. Again, about $1.1 billion of the acquisitions already contributing and the projects starting to contribute some in 2013 and the rest in 2014.

Yves Siegel

Yes. I guess the point that I was trying to get to is the fact that you spent a lot of money, you've raised a lot of capital. But in terms of getting a full cash flow contribution, it seems like you've made the investments, but you still have to sort of harvest the cash flow from more of those investments. And I don't think that could be meaningful going forward.

Stanley C. Horton

Well, we think it's going to be meaningful going forward. They -- again, the HP Storage has been a very good asset for us. It is contributing to earnings, but one of the things that we told people when we bought that was the tremendous amount of synergy opportunities that we had with that. And that Southeast expansion project would not have happened without HP Storage. The ability of these customers to be able to have access to HP Storage and that salt-dome storage and the pipeline facility that we are able to utilize, it reduces substantially the amount of capital cost to get in that Southeast market. That's just the kind of projects that we were -- that we thought we could deliver with the HP Storage. It's -- but when you're building new pipeline projects, there's some lead time to it. So we think we're going to have even more opportunities out of that HP Storage. And let me say before we go further, we hope our friends in the northeastern part of the United States, that you weather the storm safely and that you and your families are going to be safe throughout the storm.

Operator

And we have another question from the line of John Edwards from Crédit Suisse.

John Edwards - Crédit Suisse AG, Research Division

Just a follow-up, if you could just comment. What's the -- your average contract duration right now? And then, as you said, there was a significant amount coming up. Do you have actually the percentage that's coming up for renewals?

Jamie L. Buskill

The -- as far as contract life, it's still approximately 6 years on contract life. As far as renewals for next year on the firm transportation agreements, we're probably looking at an additional $25 million from what we historically have seen.

John Edwards - Crédit Suisse AG, Research Division

Okay. What's the percent -- approximate percentage?

Jamie L. Buskill

Percent of -- well, if you're looking at our...

John Edwards - Crédit Suisse AG, Research Division

Of contracted, yes.

Jamie L. Buskill

Of how much is contracted?

John Edwards - Crédit Suisse AG, Research Division

Yes, as a percentage of what's contracted and what's coming up for renewal.

Jamie L. Buskill

That's about -- that's worth about 10% of our total revenue.

Operator

We have no further questions in the queue.

Molly Ladd Whitaker

Okay. Thank you, Marie. Once again, we'd like to thank everyone for joining us this morning and for your continued interest in Boardwalk Pipeline Partners, LP. As a reminder, an online replay of this call is available at our website at www.bwpmlp.com. This concludes today's conference call. Thank you. And have a great day.

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