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Form 8-K Dominion Midstream Partn For: Feb 06

February 6, 2015 4:13 PM EST
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 6, 2015

_______________

Dominion Midstream Partners, LP
(Exact name of registrant as specified in its charter)

_______________

Delaware
001-36684
46-5135781
(State or Other Jurisdiction of
Incorporation or Organization)
(Commission
File Number)
(I.R.S. Employer
Identification No.)

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

Registrants telephone number, including area code: (804) 819-2000

_______________
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:
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 6, 2015, Dominion Midstream Partners, LP issued a press release announcing preliminary unaudited earnings for the period from the closing of its initial public offering on October 20, 2014 through December 31, 2014.��The press release and related preliminary 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 6, 2015


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

By:
Dominion Midstream GP, LLC,
��� Its general partner


Date:��February 6, 2015
By:
/s/ Carter M. Reid
Name:
Carter M. Reid
Title:
Senior Vice President and
��� Corporate Secretary





[LOGO]����������������������������������������������������������[NEWS RELEASE]

���������������������February 6, 2015


DOMINION MIDSTREAM PARTNERS ANNOUNCES 2014 EARNINGS

���
Generated $9.6 million distributable cash flow for post-IPO period
���
Declared $0.1389 per unit initial quarterly prorated distribution

RICHMOND, Va.  Dominion Midstream Partners (NYSE: DM) reported unaudited net income attributable to DM of $9.5 million, or $0.15 per limited partner unit for the period from the closing of its initial public offering (IPO) on Oct. 20, 2014 through Dec. 31, 2014 (the post-IPO period).��Adjusted earnings before interest, income taxes, depreciation and amortization (Adjusted EBITDA) attributable to DM was $9.5 million and distributable cash flow attributable to DM was $9.6 million for the post-IPO period.

QUARTERLY DISTRIBUTION
On Jan. 23, the board of directors declared its fourth-quarter 2014 cash distribution of $0.1389 per unit for the post-IPO period.��The pro-rated distribution corresponds to the minimum quarterly distribution of $0.175 per unit, or $0.70 per unit annually.

Distributions are payable on Feb. 13, 2015, to unit holders of record at the close of business Feb. 3, 2015.

BASIS OF 2014 RESULTS
Results of operations for 2014 include the results of Dominion Midstream Partners predecessor through Oct. 19, 2014.��Because results presented for periods prior to the IPO do not factor into distributable cash flow, this earnings release focuses on results of operations for the post-IPO period.��A reconciliation of the post-IPO period to the full year 2014 results is provided in the tables attached to this release.

ANALYST MEETING
Dominion Midstream Partners will also host an analyst meeting at The Waldorf Astoria in New York on Monday, Feb. 9, 2015, from 9:00 a.m. to 11:30 a.m. ET.��Management will discuss its long-term growth plan for Dominion Midstream, distribution policies and other matters of interest to the financial community.��Following the formal presentation management will be available to those in attendance for questions.��A live webcast, including accompanying slides, will be available on the companys investor information page at www.dommidstream.com/investors.


ABOUT DOMINION MIDSTREAM
Dominion Midstream is a growth-oriented Delaware limited partnership formed by Dominion Resources, Inc. in March 2014 to initially own all of the outstanding preferred equity interests in Dominion Cove Point LNG, LP, a Delaware limited partnership, which owns liquefied natural gas import, storage, regasification and transportation 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 - Results of Operations*
(Unaudited)
Presented below are selected amounts related to Dominion Midstream's results of operations:
Year Ended
December 31,
2014
2013
���������������(millions)
Operating revenue
�$313.3
�$343.5
Purchased gas
�������59.6
�������91.7
����Net revenue
�����253.7
�����251.8
Other operations and maintenance
�������34.9
�������27.9
Depreciation and amortization
�������37.7
�������31.7
Other taxes
�������22.4
�������21.1
Income tax expense
�������51.8
�������61.7
Net income including noncontrolling interest
�$106.9
�$109.4
Less: Predecessor income prior to initial public offering on October 20, 2014
�������80.6
Net income including noncontrolling interest subsequent to initial public offering
�������26.3
Less: Net Income attributable to noncontrolling interest subsequent to initial public offering
�������16.8
Net income attributable to Dominion Midstream subsequent to IPO
�$9.5
EBITDA
�$196.4
�$202.8
Adjusted EBITDA 1
�$9.5
Distributable cash flow 1
�$9.6
Distributions to public common unitholders 1
���������2.8
Distributions to Dominion 1
����Common units
���������1.7
����Subordinated units
���������4.4
Total distributions
�$8.9
Aggregate Minimum Quarterly Distribution (MQD)
�$8.9
Excess cash available for distribution above MQD
�$0.7
% Excess cash available for distribution above MQD
7.3%
1) Represents amounts for the period from October 20, 2014 to December 31, 2014.
*The notes contained in Dominion Midstream's quarterly report on Form 10-Q or annual report on Form 10-K
��to be filed for year ended Dec. 31, 2014 are an integral part of the Consolidated Financial Statements.




HOW WE EVALUATE OUR OPERATIONS

Dominion Midstream management uses a variety of financial metrics to analyze our performance. These metrics are significant factors in assessing our operating results and include: (1) EBITDA; (2) Adjusted EBITDA; and (3) distributable cash flows.

EBITDA represents net income including noncontrolling interest before interest and related charges, income tax and depreciation and amortization. Adjusted EBITDA represents EBITDA after adjustment for a noncontrolling interest in Cove Point held by Dominion subsequent to the IPO. Distributable cash flows is defined as EBITDA adjusted for known timing differences between cash and income, less capital expenditures, plus contributions from Dominion to fund capital expenditures, and less cash attributable to the noncontrolling interest in Cove Point held by Dominion subsequent to the IPO.

The GAAP measure most directly comparable to EBITDA and Adjusted EBITDA is net income, and the GAAP measure most directly comparable to distributable cash flows is net cash provided by operating activities. EBITDA, Adjusted EBITDA and distributable cash flows should not be considered alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA, Adjusted EBITDA and distributable cash flows exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Therefore, EBITDA, Adjusted EBITDA and distributable cash flows as presented may not be comparable to similarly titled measures of other companies.



Dominion 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 year.��The Adjusted EBITDA measure is not
applicable to the year ending Dec. 31, 2013.
Year Ended
December 31,
2014
2013
Net income including noncontrolling interest
�$106.9
�$109.4
Add:
Depreciation and amortization
�������37.7
31.7
Interest and related charges
�����������-
�����������-
Income tax expense
�������51.8
61.7
EBITDA
�$196.4
�$202.8
Less:
Predecessor EBITDA prior to initial public offering
�����157.5
EBITDA subsequent to initial public offering
�������38.9
EBITDA attributable to noncontrolling interest 1
�������29.4
Adjusted EBITDA 1
�$9.5
1)
Represents amounts for the period from October 20, 2014 to December 31, 2014.
*The notes contained in Dominion Midstream's quarterly report on Form 10-Q or annual report on Form 10-K
to be filed for year ended Dec. 31, 2014 are an integral part of the Consolidated Financial Statements.




Dominion Midstream Partners, LP
Schedule C - 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 2014.
Year Ended
December 31, 2014
Net cash provided by operating activities
�$����������������156.1
Add:
Income tax expense
��������������������51.8
Changes in working capital
�������������������(11.5)
EBITDA
�������������������196.4
Less:
Predecessor EBITDA prior to initial public offering
�������������������157.5
EBITDA subsequent to initial public offering
��������������������38.9
Adjustments to cash:
Plus:��Other taxes 1
����������������������4.3
Less: Renegotiated contract payments 2
���������������������(2.6)
Less:��Maintenance capital expenditures 3
���������������������(4.5)
Less:��Expansion capital expenditures 3
������������������(208.0)
Plus:��Net proceeds from the IPO to fund capital expenditures 4
�������������������340.9
Less:��Net proceeds from the IPO to be��used to fund future capital expenditures 3
������������������(128.4)
Plus:��Non-cash director compensation
����������������������0.1
Cash available to Dominion Midstream and noncontrolling interest 5
��������������������40.7
Cash attributable to noncontrolling interest 5, 6
��������������������31.1
Distributable cash flows 5
�$�������������������9.6
1)
Adjustment to reflect the timing difference between cash paid for property taxes and the amount recognized
into expense.
2)
Cove Point renegotiated certain import-related contracts that resulted, and will result, in annual payments in the
years 2013 through 2017 totaling approximately $50 million. This is to adjust for the difference between cash
received and revenue recognized.
3)
Reflects maintenance capital expenditures on the Cove Point LNG Facility and Cove Point Pipeline to maintain
Cove Points long-term operating capacity and operating income and expansion capital expenditures, primarily for
the Liquefaction Project, made to increase Cove Points long-term operating capacity and operating income whether
through construction or acquisitions. Dominion has indicated that it intends to provide the funding necessary for
the maintenance and expansion capital expenditures for both the existing Cove Point LNG Facility and Cove Point Pipeline
and the Liquefaction Project, but is under no obligation to do so.
4)
Net proceeds from the IPO were contributed to Cove Point to fund capital expenditures. Any excess of net proceeds
from the IPO over capital expenditures for the year will be used to fund capital expenditures in future periods.
5)
Represents amounts for the period from October 20, 2014 to December 31, 2014.
6)
The Preferred Equity Interest is a perpetual, non-convertible preferred equity interest entitled to the first
$50 million of annual cash distributions made by Cove Point.��Any excess in cash available over $50 million is
attributable to the noncontrolling interest but not available for distribution until the distribution reserve
has been fully funded.
*The notes contained in Dominion Midstream's quarterly report on Form 10-Q or annual report on Form 10-K to be filed for year ended
��Dec. 31, 2014 are an integral part of the Consolidated Financial Statements.




Dominion Midstream Partners, LP
Schedule D - Consolidated Statements of Income*
Unaudited (GAAP Based)
Three Months Ended
�December 31,
Year Ended
�December 31,
2014
2013
2014
2013
(Predecessor)
(Predecessor)
(in millions, except per unit data)
Operating Revenue
�$�������������67.5
�$�������������67.5
�$�����������313.3
�$�����������343.5
Operating Expenses
����Purchased gas
�����������������4.1
�����������������4.1
����������������59.6
���������������91.7
����Other operations and maintenance
�����������������6.7
�����������������6.4
����������������34.9
���������������27.9
����Depreciation and amortization
����������������14.2
�����������������7.7
����������������37.7
���������������31.7
����Other taxes
�����������������5.6
�����������������5.4
����������������22.4
���������������21.1
�������Total operating expenses
����������������30.6
����������������23.6
��������������154.6
��������������172.4
Income from operations
����������������36.9
����������������43.9
��������������158.7
��������������171.1
Other income
�����������������0.1
�������������������-
�������������������-
�������������������-
Income from operations including noncontrolling interest before income taxes
����������������37.0
43.9
��������������158.7
171.1
Income tax expense
�����������������5.3
����������������16.6
����������������51.8
���������������61.7
Net income including noncontrolling interest
�$�������������31.7
�$�������������27.3
�$�����������106.9
�$�����������109.4
Less: Predecessor income prior to initial public offering on October 20, 2014
�����������������5.4
����������������80.6
Net income��including noncontrolling interest subsequent to initial public offering
����������������26.3
����������������26.3
Less: Net income attributable to noncontrolling interest subsequent to initial public offering
����������������16.8
����������������16.8
Net income attributable to limited partners subsequent to initial public offering
�$���������������9.5
�$���������������9.5
Net income attributable to partners ownership interest subsequent to initial public offering
��Common unitholder's interest in net income
�����������������4.8
�����������������4.8
��Subordinated unitholder's interest in net income
�����������������4.7
�����������������4.7
Net income attributable to Dominion Midstream Partners, LP
�����������������9.5
�����������������9.5
Net income subsequent to initial public offering per partner unit (basic and diluted)
��Common Units
�$�������������0.15
�$�������������0.15
��Subordinated Units
�$�������������0.15
�$�������������0.15
*The notes contained in Dominion Midstream's quarterly report on Form 10-Q or annual report on Form 10-K to be filed for year ended
��Dec. 31, 2014 are an integral part of the Consolidated Financial Statements.






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