Dominion Energy Midstream Partners Announces Third-Quarter 2018 Earnings

Dominion Energy Midstream Partners, LP

Schedule A - Consolidated Statements of Income*

(Unaudited)

 Three Months Ended 

 Nine Months Ended 

 September 30, 

 September 30, 

2018

2017

2018

2017

(millions, except per unit data)

Operating Revenue

$   284.2

$   113.0

$   641.9

$   358.9

Operating Expenses

Purchased gas and other

0.3

9.1

12.9

31.1

Other operations and maintenance

54.6

33.2

147.3

102.4

Depreciation and amortization

51.0

26.5

122.8

76.8

Other taxes

18.9

9.3

38.1

27.8

124.8

78.1

321.1

238.1

Income from operations

159.4

34.9

320.8

120.8

Earnings from equity method investees

5.6

6.2

22.7

19.4

Other income

2.7

1.7

5.9

4.3

Interest and related charges 

9.1

7.9

24.9

23.7

Net income including noncontrolling interest 

158.6

34.9

324.5

120.8

111.1

(13.7)

171.8

(22.0)

Net income attributable to partners

$     47.5

$     48.6

$   152.7

$   142.8

Net income attributable to partners' ownership interest

  Preferred unitholders' interest in net income

$       9.5

$       9.5

$     28.5

$     28.5

  General partner's interest in net income

-

4.0

8.9

7.0

  Common unitholders' interest in net income

38.0

23.8

102.8

72.7

  Subordinated unitholder's interest in net income

-

11.3

12.5

34.6

Net income per limited partner unit (basic)

  Common units

$0.30

$0.35

$1.13

$1.08

  Subordinated units 

-

$0.35

$0.59

$1.08

Net income per limited partner unit (diluted)

  Common units

$0.30

$0.33

$1.07

$1.02

  Subordinated units 

-

$0.35

$0.59

$1.08

* The notes contained in Dominion Energy Midstream's most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements.

Dominion Energy Midstream Partners, LP

Schedule B - Reconciliation of EBITDA and Adjusted EBITDA to Net Income*

(Unaudited)

The following table presents a reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measure for each period.  

Three Months Ended 

Nine Months Ended

September 30, 

September 30,

2018

2017

2018

2017

(millions)

Net income including noncontrolling interest 

$  158.6

$  34.9

$  324.5

$  120.8

Add:

Depreciation and amortization

51.0

26.5

122.8

76.8

Interest and related charges

9.1

7.9

24.9

23.7

EBITDA

$  218.7

$  69.3

$  472.2

$  221.3

Distributions from equity method investees

8.5

8.2

25.7

22.2

Less:

Earnings from equity method investees

5.6

6.2

22.7

19.4

EBITDA attributable to noncontrolling interest

145.6

(4.9)

243.4

3.9

Adjusted EBITDA

$    76.0

$  76.2

$  231.8

$  220.2

* The notes contained in Dominion Energy Midstream's most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements.

Dominion Energy Midstream Partners, LP

Schedule C - Summary of Consolidated Statements of Cash Flows*

(Unaudited)

 Three Months Ended 

 Nine Months Ended 

 September 30, 

 September 30, 

2018

2017

2018

2017¹

(millions)

Cash flows from operating activities:

Net income including noncontrolling interest

$     158.6

$    34.9

$     324.5

$  120.8

Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities

(125.5)

37.0

25.4

126.6

Net cash provided by operating activities

$       33.1

$    71.9

$     349.9

$  247.4

Net cash used in investing activities

$ (2,030.8)

$ (190.6)

$ (2,211.2)

$ (728.2)

Net cash provided by financing activities

$  1,917.7

$  127.0

$  1,940.1

$  520.0

Cash, restricted cash and equivalents at beginning of period

182.5

95.5

23.7

64.6

Cash, restricted cash and equivalents at end of period

$     102.5

$  103.8

$     102.5

$  103.8

¹Amounts for 2017 have been recast to reflect the adoption of new accounting standards related to the presentation of equity method investment distributions and restricted cash and equivalents.

* The notes contained in Dominion Energy Midstream's most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements.

Dominion Energy Midstream Partners, LP

Schedule D - Reconciliation of Distributable Cash Flow to Net Cash from Operating Activities*

(Unaudited)

The following table presents a reconciliation of distributable cash flow to the most directly comparable GAAP financial measure for each period.  

Three Months Ended

Nine Months Ended

September 30,

September 30,

2018

2017

2018

2017¹

(millions)

Net cash provided by operating activities

$   33.1

$  71.9

$  349.9

$  247.4

Less:

Cash attributable to (from) noncontrolling interest

63.9

(1.7)

123.3

18.9

Restricted cash for customer deposits

(100.8)

-

19.6

-

Other changes in working capital and noncash adjustments

6.0

2.6

12.3

(8.3)

Cash received from distribution reserve

-

-

12.5

-

Adjusted EBITDA

76.0

76.2

231.8

220.2

Adjustments to cash:

Less:           Distributions to preferred unitholders

(9.5)

(9.5)

(28.5)

(28.5)

Plus (less): Contract liabilities

3.5

(0.1)

5.4

(0.4)

Less:           Amortization of regulatory liability

(0.7)

(0.7)

(2.1)

(2.1)

Less:           Maintenance capital expenditures

(10.8)

(12.8)

(28.9)

(38.7)

Plus:           Acquisition costs funded by Dominion Energy

-

1.7

-

5.9

Less:           Interest expense and AFUDC equity

(8.4)

(9.1)

(26.4)

(26.0)

Plus:           Non-cash director compensation

-

0.1

0.2

0.2

Distributable cash flow

$   50.1

$  45.8

$  151.5

$  130.6

¹Amounts for 2017 have been recast to reflect the adoption of a new accounting standard for the presentation of equity method investment distributions and therefore this reconciliation does not include an adjustment for equity method investment distributions included in investing activities.

* The notes contained in Dominion Energy Midstream's most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements.

Dominion Energy Midstream Partners, LP

Schedule E - Selected Financial Data*

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2018

2017

2018

2017

(millions, except ratio)

Adjusted EBITDA

$  76.0

$  76.2

$   231.8

$  220.2

Adjustments to cash:

Less:           Distributions to preferred unitholders

(9.5)

(9.5)

(28.5)

(28.5)

Plus (less): Contract liabilities

3.5

(0.1)

5.4

(0.4)

Less:           Amortization of regulatory liability

(0.7)

(0.7)

(2.1)

(2.1)

Less:           Maintenance capital expenditures

(10.8)

(12.8)

(28.9)

(38.7)

Plus:           Acquisition costs funded by Dominion Energy

-

1.7

-

5.9

Less:           Interest expense and AFUDC equity

(8.4)

(9.1)

(26.4)

(26.0)

Plus:           Non-cash director compensation

-

0.1

0.2

0.2

$  50.1

$  45.8

$   151.5

$  130.6

Distributions:

Incentive distribution rights

-

5.7

8.9

12.9

Common unitholders

46.7

20.3

113.8

58.1

Subordinated unitholder

-

9.7

10.7

27.7

Total distributions¹

$  46.7

$  35.7

$   133.4

$   98.7

Coverage ratio

1.07x

1.28x

1.14x

1.32x

¹For 2017, distributions declared to common units was based on units outstanding at September 30, 2017, and therefore excludes distributions paid on units issued to the public through November 6, 2017.

* The notes contained in Dominion Energy Midstream's most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements.

See schedules B and D for reconciliations of non-GAAP measures.