Dominion Energy Midstream Partners Announces Second-Quarter 2017 Earnings

Dominion Energy Midstream Partners, LP

Schedule A- Consolidated Statements of Income*

(Unaudited)

 Three Months Ended 

 Six Months Ended 

 June 30, 

 June 30, 

2017

2016

2017

2016

(millions, except per unit data)

Operating Revenue

$  115.7

$  85.6

$  245.9

$  168.6

Operating Expenses

Purchased gas

9.8

4.0

22.0

4.9

Other operations and maintenance

38.1

16.1

69.2

36.1

Depreciation and amortization

25.4

10.2

50.3

20.2

Other taxes

9.2

6.8

18.5

14.1

82.5

37.1

160.0

75.3

33.2

48.5

85.9

93.3

Earnings from equity method investees

5.2

3.7

13.2

10.1

Other income

1.3

0.9

2.6

1.4

Interest and related charges (benefit)

8.1

-

15.8

(0.1)

Net income including noncontrolling interest and predecessors

$    31.6

$  53.1

$    85.9

$  104.9

Less: Net income (loss) attributable to noncontrolling interest

(10.4)

30.6

(8.3)

59.3

Net income attributable to partners

$    42.0

$  22.5

$    94.2

$    45.6

Net income attributable to partners' ownership interest

  Preferred unitholders' interest in net income

$      9.5

$        -

$    19.0

$         -

  General partner's interest in net income

0.3

0.6

3.0

1.0

  Common unitholders' interest in net income

21.8

12.9

48.9

26.3

  Subordinated unitholder's interest in net income

10.4

9.0

23.3

18.3

Net income per limited partner unit (basic)

  Common units

$    0.33

$  0.28

$    0.73

$    0.57

  Subordinated units 

$    0.33

$  0.28

$    0.73

$    0.57

Net income per limited partner unit (diluted)

  Common units

$    0.31

$  0.28

$    0.67

$    0.57

  Subordinated units 

$    0.33

$  0.28

$    0.73

$    0.57

* The notes contained in Dominion Energy 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 Energy Midstream Partners, LP

Schedule C- Summary of Consolidated Statements of Cash Flows*

(Unaudited)

 Three Months Ended 

 Six Months Ended 

 June 30, 

 June 30, 

2017

2016

2017

2016

(millions)

Cash flows from operating activities:

  Net income including noncontrolling interest and predecessors

$     31.6

$     53.1

$     85.9

$   104.9

  Adjustments to reconcile net income including noncontrolling interest and
    predecessors to net cash provided by operating activities

33.4

8.8

89.1

25.5

Net cash provided by operating activities

$     64.7

$     61.9

$   175.0

$   130.4

Net cash used in investing activities

$ (175.3)

$ (354.4)

$ (537.1)

$ (654.2)

Net cash provided by financing activities

$     90.0

$   281.3

$   393.0

$   513.0

Cash and cash equivalents at beginning of period

91.1

35.4

39.6

35.0

Cash and cash equivalents at end of period

$     70.5

$     24.2

$     70.5

$     24.2

* The notes contained in Dominion Energy 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 Energy 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 each period.  

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

(millions)

Net cash provided by operating activities

$  64.7

$  61.9

$  175.0

$  130.4

Less:

  Cash attributable to noncontrolling interest

1.8

38.8

20.6

79.5

Other changes in working capital and noncash adjustments

5.5

4.1

(10.9)

1.2

0.2

-

0.5

-

Adjusted EBITDA

68.6

27.2

144.0

52.1

Adjustments to cash:

  Less:             Distributions to preferred unitholders

(9.5)

-

(19.0)

-

  Plus (less):   Deferred revenue

(0.2)

-

(0.3)

2.0

  Less:             Amortization of regulatory liability

(0.7)

(0.7)

(1.4)

(1.4)

  Less:             Maintenance capital expenditures

(12.7)

(2.3)

(25.9)

(7.8)

  Plus:              Acquisition costs funded by Dominion Energy

4.0

0.1

4.2

0.1

  Less:             Interest expense and AFUDC equity

(8.8)

(0.5)

(16.9)

(1.0)

  Plus:              Non-cash director compensation

-

-

0.1

0.1

$  40.7

$  23.8

$    84.8

$    44.1

* The notes contained in Dominion Energy 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 Energy Midstream Partners, LP

Schedule E- Selected Financial Data*

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

(millions, except ratio)

Adjusted EBITDA

$  68.6

$    27.2

$  144.0

$    52.1

Adjustments to cash:

  Less:            Distributions to preferred unitholders

(9.5)

-

(19.0)

-

  Plus (less):  Deferred revenue

(0.2)

-

(0.3)

2.0

  Less:            Amortization of regulatory liability

(0.7)

(0.7)

(1.4)

(1.4)

  Less:            Maintenance capital expenditures

(12.7)

(2.3)

(25.9)

(7.8)

  Plus:             Acquisition costs funded by Dominion Energy

4.0

0.1

4.2

0.1

  Less:            Interest expense and AFUDC equity

(8.8)

(0.5)

(16.9)

(1.0)

  Plus:             Non-cash director compensation

-

-

0.1

0.1

Distributable cash flow

$  40.7

$    23.8

$    84.8

$    44.1

Distributions:

  Incentive distribution rights

4.3

0.7

7.2

1.1

  Common unitholders

19.4

10.7

37.8

21.0

  Subordinated unitholder

9.2

7.6

18.0

14.7

Total distributions

$  32.9

$    19.0

$    63.0

$    36.8

Coverage ratio

1.24x

1.25x

1.35x

1.20x

* The notes contained in Dominion Energy 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 B and D for reconciliations of non-GAAP measures.