El Paso Pipeline Partners is reporting today first quarter 2009 financial and operational results for the partnership.
"We are very pleased with our performance this quarter as we saw tangible results from the projects we placed into service over the past year, as well as the acquisition we completed from our sponsor, El Paso Corporation," said Jim Yardley, president and chief executive officer of El Paso Pipeline Partners. "Moreover, in this challenging environment the stable cash flows generated by our regulated pipelines demonstrate why El Paso Pipeline Partners is positioned to deliver predictable long-term growth for our unitholders."
For the quarter ended March 31, 2009, El Paso Pipeline Partners reported net income of $46.0 million, compared with $27.6 million for the same period in 2008. EBIT rose to $51.1 million from $33.2 million for the first quarter of 2008. The improvement in net income and EBIT is primarily due to increased earnings from equity investments following the acquisition of additional interests in Colorado Interstate Gas (CIG) and Southern Natural Gas (SNG) on September 30, 2008, and the completion of expansion projects.
Operating income for the quarter ended March 31, 2009, was $21.9 million compared with $18.2 million for the same 2008 period. The increase is due to higher revenues, primarily from increased demand on the Wyoming Interstate Company (WIC) system as well as the completion of the Medicine Bow expansion project, partially offset by higher operating expenses.
Distributable cash flow for the quarter ended March 31, 2009 was $51.2 million, compared with $27.8 million for the same 2008 period. Distribution coverage for the first quarter of 2009 was 1.37 times.
During the quarter ended March 31, 2009, WIC invested $8.5 million, primarily for the Piceance Lateral expansion. Maintenance capital expenditures for the same 2009 period were $0.6 million.
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