Boardwalk Pipeline Partners (NYSE:BWP) today announced 2008 third quarter net income of $73.6 million, up 84% from the third quarter of 2007. Nearly 40% of that increase was attributed to increased gas sales and mark-to-market gains on the company’s expansion projects.
To date in 2008, Boardwalk has spent about $1.7 billion on threeexpansion projects for which the total cost is estimated at about $3.9billion. Financing these projects has been costly for the company, andthe failure of Lehman Brothers forced Boardwalk to max out its $1billion revolving credit facility. To raise more capital, the companyissue $1 billion in new partnership units. That’s the bad news. Thegood news is that Loews Corporation (NYSE:L), Boardwalk’s largestshareholder, has agreed to provide the money in case Boardwalk can’traise the cash. Loews’ stock is down about 40% for the year, so thatmay be a promise Loews keeps by selling off Boardwalk.
Shares are indicated up almost 4% at $21.88 right before the open, and its 52-week trading range is $14.00 to $32.74.
Paul Ausick
October 27, 2008
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.