Boardwalk Pipeline Partners, LP (BWP), a 74%-owned subsidiary of Loews Corp. (L), said Monday that its fourth-quarter net profit rose, while diluted net income per limited partner unit declined. Profit for the quarter ended December 31, 2009, was driven by strong revenue growth across segments, owing to expansion plans.
The Hudson, Texas-based company's quarterly net income rose 6% year-over-year to $71.6 million from $67.6 million. On a per limited partner unit basis, net income declined to $0.37 from $0.46 last year, while class B units earned $0.17 per limited partner unit versus $20 per limited partner unit.
On average, 14 analysts polled by Thomson Reuters expected earnings per share of $0.30 for the quarter. Analysts' estimate typically excludes one-time items.
Weighted-average number of limited partners common units outstanding were 169.7 million, higher than 132.8 million in the earlier-year quarter. In 2008, the group reinstated its results in accordance with GAAP provisions. Also, it benefited from a liability reversal of $9.8 million in the prior year.
Boardwalk Pipeline's quarterly operating revenue surged 36% to $279.0 million from $205.6 million last year, well ahead of Street prediction of $250.07 million. It attributed operational growth to higher gas transportation and storage revenues from expansion projects and higher parking and lending revenues from favorable natural gas price spreads.
By operating segments, revenue grew to $249.0 million, $9.6 million and $15.4 million from prior year's $188.7 million, $3.6 million and $13.5 million, in Gas Transportation; Parking and Lending and Gas Storage, respectively.
During the quarter under review, earnings before interest, taxes, depreciation and amortization, or EBITDA grew 44% year-over-year to $161.1 million from $112.1 million. Operating income increased to $108.3 million from $75.3 million, despite higher total operating cost and expenses of $170.7 million. Interest expenses and depreciation and amortization were $36.8 million and $52.6 million, up from $33.4 million and $11.7 million, respectively, a year before.
In the latest fourth-quarter, the company witnessed higher depreciation and property taxes resulting from an increase in asset base due to expansion. Also, it experienced increased interest expense as a result of lower capitalized interest associated with expansion projects being placed into service and increased debt levels.
Last week, the company declared a quarterly cash distribution per common unit of $0.50 payable on February 22 to unitholders on record as of February 15.
During the fiscal, net income plunged 45% year-over year to $162.7 million from $294.0 million. Also, on a per limited partner unit basis, it declined to $0.88 from $2.09.
On a year-to-date basis, operating revenues were up 16% to $909.2 million from $784.8 million in the comparable period of 2008.
Today, Loews Corp. reported a swing to profit for its fourth-quarter. It earned $403 million or $0.94 per share, compared to net loss of $958 million or $2.20 per share last year.
BWP closed Friday's regular trading at $28.99 and L closed Friday's trading session at $35.37, on the NYSE.
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