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Boardwalk Pipeline Partners, LP (BWP)

  • Wed, Apr. 22, 3:33 PM
    • Niska Gas Storage Partners (NKA +8.6%), whose value has collapsed from more than $1B to just $80M and who stopped distributions to shareholders in February to preserve cash, is exploring a sale, Bloomberg reports.
    • NKA, controlled by P-E funds Riverstone Holdings and Carlyle Group, is said to be working with Evercore Partners to find a buyer, as part of a broader restructuring effort as it struggles to revive its prospects amid the natural gas glut.
    • Boardwalk Pipeline Partners (NYSE:BWP) and Crestwood Midstream Partners (NYSE:CMLP) also provide gas storage services and have struggled, but they are considered less vulnerable than NKA because they are more diversified.
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  • Sep. 10, 2014, 11:45 AM
    • Boardwalk Pipeline Partners' (BWP +2.6%) Gulf South subsidiary says it has entered into 20-year firm precedent agreements with foundation shippers to transport ~1.4B cf/day of natural gas to serve the first two trains of the planned Freeport LNG liquefaction terminal.
    • BWP plans to construct a 65-mile pipeline supply header to serve the terminal and expand and modify existing facilities to provide access to additional supply sources for the header, with an anticipated start date in 2018.
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  • Aug. 12, 2014, 7:59 AM
    • Boardwalk Pipeline Partners (NYSE:BWP+3% premarket, apparently thanks to Jim Cramer's recommendation on last night's MadMoney as a growth pipeline play and potential takeover target.
    • Cramer likes BWP's $1.2B spent on acquisitions over the past two years, which should generate great synergies, and thinks new projects underway, such as plans to reverse a pipeline between Ohio and Louisiana, could boost the bottom line.
    • BWP sold off earlier in the year when it announced plans to cut its distribution, but he believes BWP made the right decision: "By investing in growth, they'll be able to boost the distribution much more dramatically once these investments start paying off."
    • Also, "with Kinder Morgan buying up all of its master limited partnership subsidiaries, I can see someone buying Boardwalk, too," Cramer adds.
  • Apr. 29, 2014, 11:33 AM
    • Boardwalk Pipeline Partners (BWP +2.1%) enjoys three sellside upgrades from Credit Suisse, J.P. Morgan and Raymond James.
    • Credit Suisse upgrades units to Outperform from Underperform with a $20 price target, up from $15, noting that the price appears to have set a bottom amid a growing demand for north-to-south pipeline capacity; the firm believes BWP likely will be capable of raising its distribution back to a normalized payout as early as 2017, though it continues to assume 2018.
  • Apr. 14, 2014, 12:14 PM
    • Boardwalk Pipeline Partners (BWP +3.2%) is upgraded to Neutral from Underperform with a $16 price target, up from $14, at BofA/Merrill, as reports indicate BWP has concluded a successful binding open season in contracting some legacy south-to-north pipeline capacity to a north-to-south flow, which could help stabilize BWP's base business.
    • BWP also may have several other potential pipeline reversals on the table, and recent natural gas spreads and volatility also may provide some near-term uplift for BWP's storage and pipeline businesses.
    • The firm also upgrades Regency Energy Partners (RGP +0.4%), to Buy from Neutral with a $30 price target, believing units are overly discounting RGP's tight coverage and relatively expensive up-front multiples for recent acquisitions.
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  • Feb. 11, 2014, 3:12 PM
    • Boardwalk Pipeline Partners (BWP +7.1%) lost nearly half its value yesterday after slashing its payout by more than 80%, but some analysts see a buying opportunity amid the carnage.
    • Citigroup upgrades shares to Buy from Neutral, urging value investors to note the severity of yesterday’s move relative to where other midstream MLPs trade on a cash flow multiple basis; the firm figures BWP trades at 10.3x 2015 EBITDA and 9.4x 2016 EBITDA, more favorable than other midstream MLPs with similar challenges such as TC Pipelines (TCP) and Niska Gas Storage Partners (NKA).
    • Given the weaker outlook, Morgan Stanley says BWP/Loews (L) made the wisest choice to substantially reduce the distribution rate while remaining able to fund the capital plan internally, preserving maximum value.
    • Deutsche Bank is staying away, however, maintaining its Sell rating with a $12 price target (from $20), expecting a longer, slower restoration of distribution.
  • Feb. 10, 2014, 12:45 PM
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  • Feb. 10, 2014, 9:58 AM
    • Boardwalk Pipeline Partners (BWP) -37.7% after declaring a $0.10/unit quarterly dividend, an 81% decrease from the prior dividend.
    • Distributable cash flow of $139M for Q4 and $558M for FY 2013 represented respective decreases of 3% and 12% vs. 2012.
    • Results were hurt by lower transportation revenues due to contract expirations and contract renewals and lower parking, lending and storage revenues due to decreased parking opportunities from a reduction in the level of and volatility in natural gas price spreads between time periods.
    • The distribution cut prompts Credit Suisse to downgrade BWP to Underperform from Neutral with a $20 price target, down from $32.
    • Loews (L), which owns 53% of BWP, is 3.8% lower; the company also released Q4 earnings.
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  • Feb. 10, 2014, 9:11 AM
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  • Oct. 31, 2013, 12:56 PM
    • Boardwalk Pipeline (BWP -1.7%) is downgraded to Underweight with a $27 price target, from $32, at Barclays.
    • The firm thinks it would be difficult for BWP to put on more debt in a declining EBITDA environment when its debt-to-EBITDA metric is already ~4.5x.
    • The incremental contribution from projects currently underway will only partially offset the impact of the structural shift underway in the natural gas transportation pipeline and storage backdrop, the firm adds.
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  • Aug. 23, 2013, 12:25 PM
    • TC Pipelines (TCP -2%) is downgraded to Underperform from Buy with a $51 price target (from $53) at BofA Merrill Lynch, which says the rating change brings TCP more in line with other dry natural gas exposed MLPs such as SEP, BWP and EPB.
    • The firm cites valuation after solid recent gains, minimal organic growth over the medium-term, some remaining re-contracting risk, expected low single-digit cash distribution growth, and the continued sporadic timing of potential dropdowns from general partner TransCanada (TRP).
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  • Jul. 29, 2013, 2:34 PM
    • Boardwalk Pipeline Partners (BWP -1.7%) is gauging customer interest in a liquefied natural gas processing facility in Louisiana, CEO Stanley Horton said during BWP's earnings call.
    • BWEP's Bluegrass Pipeline, which would take NGLs from the bottlenecked Marcellus and Utica shale regions to petrochemical and export facilities on the Gulf Coast, is in development; BWP is proposing to construct its own LNG facility at the end of the pipeline.
    • "We'll build it to size" upon getting commitments, Horton said.
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  • May 29, 2013, 5:54 PM
    After-hours top gainers, as of 5:15 p.m.: NVE +23.9%. IQNT +6.4%. AVGO +3.9%. HIMX +3.9%. ELN +2.7%.
    After-hours top losers: UCO -9.1%. BWP -4.4%. IOC -4.1%. VNR -4.0%. NBN -2.4%.
  • May 29, 2013, 4:35 PM
    Boardwalk Pipeline Partners (BWP) -4.6% AH after announcing a public offering of 11M common units. BWP expects to use net proceeds to pay down debt and possibly for other purposes such as funding capital expenditures for growth projects.
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  • Feb. 12, 2013, 10:47 AM
    Boardwalk Pipeline Partners (BWP -2.9%) is downgraded to Underperform at Credit Suisse, which believes BWP's modest distribution growth outlook, re-contracting headwinds and likely equity issuance to alleviate a relatively highly levered balance sheet leave it wanting when compared to other opportunities within the MLP sector.
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  • Oct. 3, 2012, 4:53 PM
    Boardwalk Pipeline Partners (BWP) -4.4% AH after announcing plans to offer 10M common units representing limited partner interests in a registered offering. BWP expects to use the net proceeds to repay borrowings or for other general partnership purposes.
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Company Description
Boardwalk Pipeline Partners LP operates in the midstream portion of the natural gas. The Company providestransportation, storage, gathering and processing services natural gas and NGL industry.