A Closer Look At Boardwalk Pipeline Partners' Q2'14 Distributable Cash Flow
- The 2014 DCF forecast is likely to be met or exceeded.
- The leverage target (4x Debt-to-EBITDA) is unlikely to be reached by year-end.
- Operating income and EBITDA trends in recent quarters and the TTM period are not encouraging.
- Valuation multiple lower than peers, but so is current yield. The likelihood of significant distribution growth in the next 2-3 years is low.
- BWP is well-positioned to benefit from increased demand to transport gas and NGLs from north to south. But this will require significant capital investments and time.