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Form 8-K Dominion Midstream Partn For: Feb 01

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February 1, 2016 8:16 AM EST

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, DC  20549

 FORM 8‑K


CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
 Securities Exchange Act of 1934


Date of report (Date of earliest event reported) February 1, 2016

Dominion Midstream Partners, LP
(Exact Name of Registrant as Specified in Its Charter)


Delaware
(State or other jurisdiction
 of incorporation)
001-36684
(Commission
 File Number)
46-5135781
(IRS Employer
 Identification No.)


120 Tredegar Street
Richmond, Virginia
 (Address of Principal Executive Offices)
 
23219
 (Zip Code)


Registrant's Telephone Number, Including Area Code (804) 819-2000



(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 2.02 Results of Operations and Financial Condition

On February 1, 2016, Dominion Midstream Partners, LP issued a press release announcing unaudited earnings for the three and twelve months ended December 31, 2015.  The press release and related unaudited earnings tables are furnished with this Form 8-K as Exhibit 99.

Item 9.01 Financial Statements and Exhibits.

Exhibit
  
99
Dominion Midstream Partners, LP press release dated February 1, 2016



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DOMINION MIDSTREAM PARTNERS, LP
Registrant
 
By:  Dominion Midstream GP, LLC
        Its general partner
 
/s/ Carter M. Reid
Carter M. Reid
 Senior Vice President and Corporate Secretary
 
 

Date:  February 1, 2016
February 1, 2016


Dominion Midstream Partners Announces Fourth-Quarter 2015 Earnings

·
Generated $24.7 million distributable cash flow for fourth-quarter 2015
·
Declared $0.2135 per unit quarterly distribution, a 7 percent increase above third-quarter
·
Management affirms targeted 22% annual distribution growth through 2020

RICHMOND, Va. – Dominion Midstream Partners, LP (NYSE: DM) reported unaudited net income attributable to the partnership of $25.1 million, or $0.32 per common limited partner unit for the three months ended Dec. 31, 2015.  Adjusted earnings before interest, income taxes, depreciation and amortization (Adjusted EBITDA) was $23.6 million and distributable cash flow was $24.7 million for the quarter.

Dominion Midstream uses Adjusted EBITDA and distributable cash flow as the primary performance measurement of its earnings and results for public communications with analysts and investors.  Dominion Midstream also uses Adjusted EBITDA and distributable cash flow internally for budgeting, reporting to the Board of Directors and other purposes. Management believes Adjusted EBITDA and distributable cash flow provide a more meaningful representation of the company's financial performance.

QUARTERLY DISTRIBUTION
On Jan. 21, 2016, the Board of Directors declared a quarterly distribution of $0.2135 per unit, payable on Feb. 15, 2016, to unitholders of record at the close of business Feb. 5, 2016.

CONFERENCE CALL TODAY
Dominion Midstream and Dominion Resources will jointly host a fourth-quarter earnings conference call at 12 p.m. ET on Monday, February 1.  Dominion management will discuss its fourth-quarter financial results and other matters of interest to the financial community.

Domestic callers should dial (877) 410-5657.  The passcode for the conference call is "Dominion."  International callers should dial (334) 323-9872.  Participants should dial in 10 to 15 minutes prior to the scheduled start time.  Members of the media also are invited to listen.

A live webcast of the conference call, including accompanying slides, will be available on the company's investor information page at www.dommidstream.com/investors.

A replay of the conference call will be available beginning about 3 p.m. ET February 1 and lasting until 11 p.m. ET February 8.  Domestic callers may access the recording by dialing (877) 919-4059.  International callers should dial (334) 323-0140.  The PIN for the replay is 70708300.  Additionally, a replay of the webcast will be available on the investor information pages by the end of the day February 1.

ABOUT DOMINION MIDSTREAM
Dominion Midstream is a Delaware limited partnership formed by Dominion Resources, Inc., to grow a portfolio of natural gas terminaling, processing, storage, transportation and related assets.  It is headquartered in Richmond, Va. For more information about Dominion Midstream, visit its website at www.dommidstream.com.

#####

CONTACTS:     Media: Ryan Frazier, (804) 819-2521 or [email protected]
                                        Financial analysts: Kristy Babcock, (804) 819-2492 or [email protected]
Dominion Midstream Partners, LP
Schedule A - Selected Financial Data*
(Unaudited)
         
         
 
Three Months Ended
  
Year Ended
   
December 31,
  
December 31,
   
2015
  
2015
(millions)
        
         
Adjusted EBITDA
  
 $                23.6
  
 $                75.6
Adjustments to cash:
        
   Plus: Other taxes
  
                     1.6
  
                     4.1
   Plus: Deferred revenue
  
                     4.0
  
                     8.0
   Less: Amortization of regulatory liability
  
                   (0.7)
  
                   (2.1)
   Less: Maintenance capital expenditures
  
                   (3.4)
  
                   (9.4)
   Plus: Transition costs funded by Dominion
  
                       -
  
                     0.7
   Less: Interest expense and AFUDC equity
  
                   (0.5)
  
                   (1.4)
   Plus: Non-cash director compensation
  
                     0.1
  
                     0.2
Distributable Cash Flow
  
 $                24.7
  
 $                75.7
         
Distributions:
        
   Incentive distribution rights
  
                     0.2
  
                     0.2
   Common unitholders
  
                     9.8
  
                   32.3
   Subordinated unitholder
  
                     6.8
  
                   24.8
Total distributions
  
 $                16.8
  
 $                57.3
         
Coverage Ratio
  
1.47x
  
1.32x
         
* The notes contained in Dominion 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 C and D for reconciliations of non-GAAP measures.
      
 

Dominion Midstream Partners, LP
Schedule B - Consolidated Statements of Income*
(Unaudited)
               
 
 Three Months Ended
  
 Year Ended
 
 December 31,
  
 December 31,
 
2015
  
2014
  
2015
  
2014
(millions, except per unit data)
              
Operating Revenue
 $            82.7
  
 $            67.5
  
 $          369.6
  
 $          313.3
Operating Expenses
              
   Purchased gas
                 1.8
  
                 4.1
  
               54.6
  
               59.6
   Other operations and maintenance
               13.6
  
                 6.7
  
               56.7
  
               34.9
   Depreciation and amortization
               10.0
  
               14.2
  
               40.4
  
               37.7
   Other taxes
                 6.3
  
                 5.6
  
               26.3
  
               22.4
      Total operating expenses
               31.7
  
               30.6
  
             178.0
  
             154.6
Income from operations
               51.0
  
               36.9
  
             191.6
  
             158.7
Earnings from equity method investee
                 6.6
  
                    -
  
                 6.6
  
                    -
Other income
                 0.4
  
                 0.1
  
                 1.0
  
                    -
Interest and related charges
                 0.3
  
                    -
  
                 0.6
  
                    -
Income from operations including noncontrolling interest before income taxes
               57.7
  
               37.0
  
             198.6
  
             158.7
Income tax expense
                    -
  
                 5.3
  
                 2.1
  
               51.8
Net income including noncontrolling interest and DCG Predecessor
 $            57.7
  
 $            31.7
  
 $          196.5
  
 $          106.9
Less: Predecessor income prior to initial public offering on October 20, 2014
                    -
  
                 5.4
  
                    -
  
               80.6
Less: Net income attributable to DCG Predecessor 1
                    -
  
                    -
  
                 2.3
  
                    -
Net income including noncontrolling interest
               57.7
  
               26.3
  
             194.2
  
               26.3
Less: Net income attributable to noncontrolling interest
               32.6
  
               16.8
  
             121.7
  
               16.8
Net income attributable to partners
 $            25.1
  
 $              9.5
  
 $            72.5
  
 $              9.5
               
Net income attributable to partners' ownership interest
              
  General partner's interest in net income
 $              0.2
  
 $                -
  
 $            (0.5)
  
 $                -
  Common unitholders' interest in net income
               14.6
  
                 4.8
  
               41.3
  
                 4.8
  Subordinated unitholder's interest in net income
               10.3
  
                 4.7
  
               31.7
  
                 4.7
               
Net income per limited partner unit (basic and diluted)
              
  Common Units
$0.32
  
$0.15
  
$1.08
  
$0.15
  Subordinated Units
$0.32
  
$0.15
  
$1.00
  
$0.15
               
1 Represents amounts for the period from January 31, 2015 through March 31, 2015.
              
               
* The notes contained in Dominion 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 Midstream Partners, LP
Schedule C - 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
  
Year Ended
   
December 31,
  
December 31,
       
2015
      
2015
(millions)
                
Net income including noncontrolling interest and DCG Predecessor
      
 $            57.7
      
 $          196.5
Add:
                
   Depreciation and amortization
      
                10.0
      
               40.4
   Interest and related charges
      
                  0.3
      
                 0.6
   Income tax expense
      
                    -
      
                 2.1
EBITDA
      
 $            68.0
      
 $          239.6
Distributions from equity method investee
      
                  2.6
      
                 2.6
Less:
                
   Earnings from equity method investee
      
                  6.6
      
                 6.6
   EBITDA attributable to DCG Predecessor 1
      
                    -
      
                 5.7
   EBITDA attributable to noncontrolling interest
      
                40.4
      
             154.3
Adjusted EBITDA
      
 $            23.6
      
 $            75.6
                 
1 Represents amounts for the period from January 31, 2015 through March 31, 2015.
              
                 
* The notes contained in Dominion 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 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 the three and twelve month periods ended December 31, 2015.
         
         
         
         
 
Three Months Ended
  
Year Ended
   
December 31,
  
December 31,
   
2015
  
2015
(millions)
        
Net cash provided by operating activities
  
 $                  47.9
  
 $                243.5
Less:
        
   Cash attributable to noncontrolling interest
  
                     25.5
  
                   154.4
   Cash attributable to DCG Predecessor 1
  
                          -
  
                     10.4
Other changes in working capital and noncash adjustments
  
                       1.2
  
                     (3.1)
Adjusted EBITDA
  
                     23.6
  
                     75.6
Adjustments to cash:
        
   Plus: Other taxes
  
                       1.6
  
                       4.1
   Plus: Deferred revenue
  
                       4.0
  
                       8.0
   Less: Amortization of regulatory liability
  
                     (0.7)
  
                     (2.1)
   Less: Maintenance capital expenditures
  
                     (3.4)
  
                     (9.4)
   Plus: Transition costs funded by Dominion
  
                          -
  
                       0.7
   Less: Interest expense and AFUDC equity
  
                     (0.5)
  
                     (1.4)
   Plus: Non-cash director compensation
  
                       0.1
  
                       0.2
Distributable cash flow
  
 $                  24.7
  
 $                  75.7
         
1 Represents amounts for the period from January 31, 2015 through March 31, 2015.
      
         
* The notes contained in Dominion 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.
         
HOW WE EVALUATE OUR OPERATIONS
Subsequent to the acquisition of DCG, we define distributable cash flow as Adjusted EBITDA less maintenance capital expenditures, less interest expense and adjusted for known timing differences between cash and income.  All periods presented have been calculated to reflect a consistent approach.
         

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