-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JOjpRtCu8Ll3fjO2510lqZCsHZfPYqhTInJmv6Uh8a8bFfT2aPPp6lCTkT+ba0ff JLYndzhAYKfAUFOnoM3q4Q== 0000950129-05-000994.txt : 20050208 0000950129-05-000994.hdr.sgml : 20050208 20050207175341 ACCESSION NUMBER: 0000950129-05-000994 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050207 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050208 DATE AS OF CHANGE: 20050207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHERN BORDER PARTNERS LP CENTRAL INDEX KEY: 0000909281 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION [4922] IRS NUMBER: 931120873 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12202 FILM NUMBER: 05581581 BUSINESS ADDRESS: STREET 1: 13710 FIRST NATIONAL BANK STREET 2: PARKWAY CITY: OMAHA STATE: NE ZIP: 68154-5200 BUSINESS PHONE: 4024927300 MAIL ADDRESS: STREET 1: 13710 FIRST NATIONAL BANK STREET 2: PARKWAY CITY: OMAHA STATE: NE ZIP: 68154-5200 8-K 1 h22278e8vk.txt NORTHERN BORDER PARTNERS, L.P.- FEBRUARY 7, 2005 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 7, 2005 NORTHERN BORDER PARTNERS, L.P. (Exact name of registrant as specified in its charter) DELAWARE 1-12202 93-1120873 (State or other jurisdiction of (Commission (IRS Employer incorporation) File Number) Identification No.) 13710 FNB PARKWAY OMAHA, NEBRASKA 68154-5200 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (402) 492-7300 ------------------------------------- (Former name or former address, if changed since last report.) 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 7.01 REGULATION FD DISCLOSURE. Attached as Exhibit 99.1 is a copy of Northern Border Partners, L.P.'s press release, dated February 7, 2005, announcing Northern Border Partners, L.P.'s financial results for the fourth quarter of 2004 and 2004 year-end results. The information in Item 7.01 of this report is being furnished, not filed, pursuant to Regulation FD. Accordingly, the information in Item 7.01 of this report will not be incorporated by reference into any registration statement filed by the Partnership under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. 99.1 Northern Border Partners, L.P. press release dated February 7, 2005. 2 SIGNATURES 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. NORTHERN BORDER PARTNERS, L.P. Date: February 7, 2005 By: /s/ Jerry L. Peters -------------------------------------- Name: Jerry L. Peters Title: Chief Financial and Accounting Officer 3 EXHIBIT INDEX Exhibit 99.1 -- Northern Border Partners, L.P. press release dated February 7, 2005. 4 EX-99.1 2 h22278exv99w1.txt PRESS RELEASE DATED FEBRUARY 7, 2005 EXHIBIT 99.1 [NORTHERN BORDER PARTNERS, L.P. LETTERHEAD] NORTHERN BORDER PARTNERS, L.P. - ------------------------------ REPORTS RECORD EARNINGS - ----------------------- FOR IMMEDIATE RELEASE: Monday, February 7, 2005 OMAHA - Northern Border Partners, L.P. (NYSE - NBP) today reported fourth quarter 2004 net income of $40.1 million or $0.80 per unit compared to net income of $30.5 million or $0.60 per unit in the fourth quarter 2003. For the full year 2004, Northern Border Partners reported net income of $144.7 million or $2.89 per unit as compared to a net loss of $88.5 million or a loss of $2.08 per unit in 2003. As reported earlier, 2003 net income reflected third-quarter non-cash charges of approximately $219 million to reflect asset and goodwill impairments in the gathering and processing segment. Full year 2003 earnings without the impairment charge would have been $130.6 million or $2.65 per unit. Cash flows as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $100.4 million in the fourth quarter 2004 from $82.5 million in the fourth quarter of 2003. EBITDA for the full year 2004 was $366.9 million compared to $341.7 million for 2003. The impairment charges had no impact on 2003 EBITDA. Distributable cash flow (DCF) for fourth quarter 2004 was $54.3 million ($1.11 per unit) compared to $44.0 million ($0.89 per unit) in the fourth quarter 2003. DCF was $203.8 million ($4.15 per unit) for 2004 compared to $194.5 million ($4.05 per unit) for 2003. Results during the fourth quarter 2004 include an after-tax gain of $3.4 million from the sale of the Partnership's minority interest in the Gregg Lake/Obed Pipeline located in Alberta, Canada. The gain is reported in discontinued operations in the attached financial tables. Other items affecting fourth quarter 2004 results include a $1.2 million increase in net income due to a reduction in the allowance for doubtful accounts related to potential recoveries in the Enron bankruptcy. In addition, the fourth quarter 2004 net income includes $4.8 million from the reversal of a 2003 accrual related to the Partnership's potential costs of Enron's termination of its pension plans. The Partnership's potential obligation for pension plan termination costs was resolved late in 2004. Delivered volumes in the Partnership's interstate natural gas pipelines segment decreased slightly during fourth quarter 2004 to 283 billion cubic feet (Bcf) from 289 Bcf for the fourth quarter of 2003. Average gathering volumes increased to 1,048 million cubic feet per day (MMcf/d) during the fourth quarter 2004 compared to 998 MMcf/d for the fourth quarter 2003. Volumes on the Partnership's wholly-owned gathering systems in the Powder River Basin increased to 211 MMcf/d in the fourth quarter 5 of 2004 from 204 MMcf/d in the fourth quarter of 2003. Processing volumes in the Williston Basin also increased to 58 MMcf/d for the fourth quarter of 2004 compared to 54 MMcf/d for the fourth quarter 2003. "We are pleased to report record earnings for 2004, driven by excellent performance in each of our business segments," said Bill Cordes, chairman and chief executive officer of Northern Border Partners. "In addition, 2004 was a watershed year for us, in that the relationship with Enron was brought to a close with ONEOK's purchase of their general partner interest and through the favorable resolution of a number of outstanding financial issues." "The management team has worked aggressively with both of our general partners to sharpen our focus on growth. With the support of these strong general partners, our strategy is to grow distributions to unitholders through both organic growth projects and strategic acquisitions," said Cordes. "2005 promises to be a challenging and exciting year for Northern Border." On January 21, 2005 the Partnership Policy Committee declared the Partnership's quarterly cash distribution of $0.80 per unit for the fourth quarter of 2004. The indicated annual rate is $3.20. The distribution is payable February 14, 2005 to unitholders of record on January 31, 2005. The Partnership also reiterated its guidance for 2005, stating that it continues to expect net income, excluding acquisitions, for 2005 to be in the range of $126 million to $131 million ($2.50 to $2.60 per unit). EBITDA in 2005 is anticipated to be approximately $345 million to $355 million. DCF for 2005 is expected to be $174 million to $182 million. An integral assumption underlying the Partnership's guidance for 2005 is fully recontracting Northern Border Pipeline at maximum rate levels. Northern Border Pipeline has a significant amount of capacity, approximately 800 MMcf/d, under contracts that expire by May 31, 2005. Northern Border Pipeline is aggressively marketing this capacity; however, it is possible that natural gas price differentials between Western Canada and the Midcontinent may not be great enough at certain times of the year to support maximum rate levels. Consequently, the Partnership believes a reduction in its guidance for 2005 net income and cash flow of $5 million to $10 million is possible. The impact on net income and cash flow may vary outside this range depending on actual natural gas price differentials experienced during the year. Northern Border Partners will host a conference call on Tuesday, February 8, 2005 at 10:00 a.m. Eastern Time to review fourth quarter and full year 2004 results and discuss 2005 guidance. This call is being web cast by CCBN and may be accessed via the Partnership's website at http://www.northernborderpartners.com. An audio replay of the call will be available through February 15, 2005 by dialing, toll free in the United States and Canada, 800-405-2236 and entering passcode 11021526. The Partnership has disclosed in this press release EBITDA and DCF amounts that are non-GAAP financial measures. Management believes EBITDA and DCF provide useful information to investors as a measure of comparability to peer companies. However, these calculations may vary from company to company, so the Partnership's computations may not be comparable to other companies'. Management further uses EBITDA to compare the financial performance of its segments and to internally manage those business segments. Fourth quarter and full year 2003 and 2004 reconciliations of EBITDA to our net income and cash flows from operating activities and computations of DCF are included in the financial information with this release. On a consolidated basis, EBITDA is reconciled to cash flows from operating activities determined under GAAP. For segment information of this press release, EBITDA is reconciled to net income rather than to cash flows from operating activities, since the Partnership does not determine segment cash flows from operating activities due to its intercompany cash management activity. Reconciliations of 2005 projected EBITDA to projected net income and computations of projected DCF are also attached to this release. 6 Northern Border Partners, L.P. is a publicly traded partnership formed to own, operate and acquire a diversified portfolio of energy assets. The Partnership owns and manages natural gas pipelines and is engaged in the gathering and processing of natural gas. More information can be found at http://www.northernborderpartners.com. This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Northern Border Partners, L.P. believes that its expectations are based on reasonable assumptions, it can give no assurance that such expectations will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements include natural gas development in the Western Canadian Sedimentary Basin; competitive conditions in the overall natural gas and electricity markets; our ability to market pipeline capacity on favorable terms; performance of contractual obligations by the shippers; our ability to recover costs in pipeline rates relating to the settlement with the Fort Peck Tribes on rights-of-way and tax issues; prices of natural gas and natural gas liquids; the rate of development, gas quality, and competitive conditions in gas fields near the Partnership's natural gas gathering systems in the Powder River and Williston Basins and its investments in the Powder River and Wind River Basins; regulatory actions and receipt of expected regulatory clearances; regulatory actions relative to rate recovery of income tax allowances for partnerships; renewal of the coal slurry transportation contract under favorable terms and preparation for a possible temporary shutdown of the coal slurry pipeline; any costs related to changes in the systems and services currently provided to us by Enron Corp. and CrossCountry Energy and their affiliates and costs related to replacing these systems and services or transitioning them to ONEOK; actions by rating agencies; our ability to complete acquisitions or growth projects and their future performance; timely receipt of right-of-way, regulatory clearances and approval for the expansion projects; our ability to control operating costs; and conditions in the capital markets and our ability to access the capital markets. ###### 7 NORTHERN BORDER PARTNERS, L.P. FINANCIAL HIGHLIGHTS -------------------- (Unaudited: In Millions Except Net Income Per Unit)
FOURTH QUARTER YEAR TO DATE 2004 2003 2004 2003 ------ ------ ------ ------ Operating Revenue $156.8 $140.4 $590.4 $550.9 Income (Loss) From Continuing Operations $ 37.8 $ 27.2 $140.9 $(97.2) Net Income (Loss) $ 40.1 $ 30.5 $144.7 $(88.5) Per Unit Income (Loss) From Continuing Operations $ 0.76 $ 0.53 $ 2.81 $(2.27) Per Unit Net Income (Loss) $ 0.80 $ 0.60 $ 2.89 $(2.08) Cash Flows From Operating Activities $ 52.7 $ 55.4 $244.6 $224.7 EBITDA(1) $100.4 $ 82.5 $366.9 $341.7 Distributable Cash Flow $ 54.3 $ 44.0 $203.8 $194.5 Distributable Cash Flow Per Unit $ 1.11 $ 0.89 $ 4.15 $ 4.05
CONSOLIDATED STATEMENT OF INCOME -------------------------------- (Unaudited: In Millions Except Net Income Per Unit)
FOURTH QUARTER YEAR TO DATE 2004 2003 2004 2003 -------- -------- -------- -------- Operating Revenue $ 156.8 $ 140.4 $ 590.4 $ 550.9 -------- -------- -------- -------- Operating Expenses Product Purchases 32.2 20.0 103.2 80.8 Operations and Maintenance 24.4 38.0 109.8 127.1 Depreciation and Amortization (2) 22.3 21.2 86.4 299.8 Taxes Other Than Income 8.8 8.5 36.2 35.4 -------- -------- -------- -------- Total Operating Expenses 87.7 87.7 335.6 543.1 -------- -------- -------- -------- Operating Income 69.1 52.7 254.8 7.8 Interest Expense, Net (20.6) (18.7) (77.0) (79.0) Other Income, Net 0.0 (0.2) 0.2 4.4 Equity Earnings from Investments 4.1 4.0 18.0 18.8 Minority Interest (13.8) (11.0) (50.0) (44.5) -------- -------- -------- -------- Income (Loss) From Continuing Operations Before Income Taxes 38.8 26.8 146.0 (92.5) Income Taxes 1.0 (0.4) 5.1 4.7 -------- -------- -------- -------- Income (Loss) From Continuing Operations 37.8 27.2 140.9 (97.2) Discontinued Operations, net of tax 2.3 3.3 3.8 9.3 Cumulative Effect of Change in Accounting Principle, net of tax 0.0 0.0 0.0 (0.6) -------- -------- -------- -------- Net Income (Loss) $ 40.1 $ 30.5 $ 144.7 ($ 88.5) ======== ======== ======== ======== Per Unit Income (Loss) From Continuing Operations $ 0.76 $ 0.53 $ 2.81 ($ 2.27) ======== ======== ======== ======== Per Unit Net Income (Loss) $ 0.80 $ 0.60 $ 2.89 ($ 2.08) ======== ======== ======== ======== Average Units Outstanding 46.4 46.4 46.4 45.4 ======== ======== ======== ========
NORTHERN BORDER PARTNERS, L.P. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES --------------------------------------------- (Unaudited: In Millions)
RECONCILIATION OF EBITDA TO NET INCOME FOURTH QUARTER YEAR TO DATE 2004 2003 2004 2003 -------- -------- -------- -------- EBITDA(1) $ 100.4 $ 82.5 $ 366.9 $ 341.7 Minority Interest (13.8) (11.0) (50.0) (44.5) Interest Expense, Net (20.6) (18.7) (77.0) (79.0) Depreciation and Amortization (including amounts in Other Income, Net and Discontinued Operations)(2) (22.5) (22.4) (87.2) (302.0) Income taxes (including amounts in Discontinued Operations) (3.4) 0.0 (8.1) (4.4) Equity AFUDC (included in Other Income, Net) 0.0 0.1 0.1 0.3 Cumulative Effect of Change in Accounting Principle, net of tax 0.0 0.0 0.0 (0.6) -------- -------- -------- -------- Net Income $ 40.1 $ 30.5 $ 144.7 ($ 88.5) ======== ======== ======== ======== RECONCILIATION OF EBITDA TO CASH FLOWS FROM OPERATING ACTIVITIES EBITDA(1) $ 100.4 $ 82.5 $ 366.9 $ 341.7 Interest Expense, Net (20.6) (18.7) (77.0) (79.0) Changes in Current Assets and Liabilities (21.8) (9.4) (19.3) (18.6) Equity Earnings from Investments (4.1) (4.0) (18.0) (18.8) Distributions Received from Equity Investments 3.4 0.2 13.9 16.3 Changes in Reserves and Deferred Credits 0.4 2.6 (2.7) (5.7) Gain on Sale of Assets (3.2) 0.0 (6.6) (4.9) Other (1.8) 2.2 (12.6) (6.3) -------- -------- -------- -------- Cash Flows From Operating Activities $ 52.7 $ 55.4 $ 244.6 $ 224.7 ======== ======== ======== ======== RECONCILIATION OF EBITDA TO DISTRIBUTABLE CASH FLOW EBITDA(1) $ 100.4 $ 82.5 $ 366.9 $ 341.7 Interest Expense, Net (20.6) (18.7) (77.0) (79.0) Maintenance Capital (8.2) (6.4) (21.0) (17.4) Distributions to Minority Interest (14.9) (12.3) (61.7) (46.2) Other (2.4) (1.1) (3.4) (4.6) -------- -------- -------- -------- Distributable Cash Flow $ 54.3 $ 44.0 $ 203.8 $ 194.5 ======== ======== ======== ======== Distributable Cash Flow Per Unit $ 1.11 $ 0.89 $ 4.15 $ 4.05 ======== ======== ======== ========
NORTHERN BORDER PARTNERS, L.P. OTHER FINANCIAL INFORMATION --------------------------- (Unaudited: In Millions)
DECEMBER 31, DECEMBER 31, 2004 2003 -------- -------- SUMMARY BALANCE SHEET DATA Total assets by segment: Interstate Natural Gas Pipelines $1,900.6 $1,970.8 Natural Gas Gathering and Processing 570.1 552.8 Coal Slurry Pipeline 18.3 21.3 Other (assets not allocated to segments) 21.6 25.7 -------- -------- Total consolidated assets $2,510.6 $2,570.6 ======== ======== Consolidated capitalization: Long-term debt, including current maturities $1,330.4 $1,416.0 Partners' capital 780.2 795.1 Minority interests in partners' equity 290.1 240.7 Accumulated other comprehensive income 9.2 5.5 -------- -------- Total capitalization 2,409.9 2,457.3 Consolidated other current liabilities and reserves and deferred credits 100.7 113.3 -------- -------- Total liabilities and capitalization $2,510.6 $2,570.6 ======== ========
FOURTH QUARTER YEAR TO DATE 2004 2003 2004 2003 ------ ------ ------ ------ Capital Expenditures and Equity Investments(3) Maintenance - Interstate Natural Gas Pipelines $ 6.8 $ 5.7 $ 15.9 $ 12.9 Natural Gas Gathering and Processing 1.4 0.6 3.5 2.7 Coal Slurry Pipeline 0.0 0.1 1.6 1.8 ------ ------ ------ ------ 8.2 6.4 21.0 17.4 ------ ------ ------ ------ Growth - Interstate Natural Gas Pipelines 0.2 6.1 0.3 128.7 Natural Gas Gathering and Processing 17.1 2.9 22.1 7.3 Coal Slurry Pipeline 0.0 0.0 0.0 0.0 ------ ------ ------ ------ 17.3 9.0 22.4 136.0 ------ ------ ------ ------ Total $ 25.5 $ 15.4 $ 43.4 $153.4 ====== ====== ====== ======
(1) EBITDA is computed from (a) net income plus (b) the cumulative effect of change in accounting principle; (c) minority interest; (d) interest expense, net; (e) income taxes; and (f) depreciation and amortization less (g) equity AFUDC. (2) Year to date depreciation and amortization includes an asset impairment charge of $76.0 million and a goodwill impairment charge of $143.1 million for total impairment charges of $219.1 million. (3) Management classifies expenditures that are expected to generate additional revenues or significant operating efficiency as growth capital expenditures and equity investments. Any remaining capital expenditures are classified as maintenance. (4) Volume information presented in operating results includes 100% of the volumes for joint ventures and equity investments as well as for wholly-owned subsidiaries. NORTHERN BORDER PARTNERS, L.P. SUMMARY SEGMENT INFORMATION --------------------------- (Unaudited)
FOURTH QUARTER YEAR TO DATE 2004 2003 2004 2003 ------------ ------------ ------------ ------------ Interstate Natural Gas Pipelines Segment Operating Results(4): Gas Delivered (MMcf) 283,129 288,793 1,130,634 1,110,969 Average Throughput (MMcf/d) 3,159 3,218 3,166 3,147 Financial Results (In Millions): Operating Revenue $ 96.5 $ 96.2 $ 383.6 $ 375.2 ------------ ------------ ------------ ------------ Operating Expenses Operations and Maintenance 9.2 20.0 52.7 63.6 Depreciation and Amortization 17.1 17.0 67.1 65.9 Taxes Other Than Income 7.9 7.9 32.8 32.9 ------------ ------------ ------------ ------------ Total Operating Expenses 34.2 44.9 152.6 162.4 ------------ ------------ ------------ ------------ Operating Income 62.3 51.3 231.0 212.8 Interest Expense, Net (11.8) (11.1) (43.9) (47.6) Other Income, Net 0.4 (0.3) 0.8 0.5 Equity Earnings from Investments 0.6 0.5 1.6 2.0 ------------ ------------ ------------ ------------ Income Before Income Taxes 51.5 40.4 189.5 167.7 Income Taxes 1.0 (0.7) 4.8 3.6 ------------ ------------ ------------ ------------ Net Income 50.5 41.1 184.7 164.1 Net income to Minority Interest (13.8) (11.0) (50.0) (44.5) ------------ ------------ ------------ ------------ Net Income to Northern Border Partners $ 36.7 $ 30.1 $ 134.7 $ 119.6 ============ ============ ============ ============ EBITDA(1) $ 80.5 $ 68.5 $ 300.8 $ 281.2 ============ ============ ============ ============ Distributions from Northern Border Pipeline: Paid to Northern Border Partners $ 34.7 $ 28.7 $ 143.9 $ 107.8 Paid to Minority Interest $ 14.9 $ 12.3 $ 61.7 $ 46.2 ------------ ------------ ------------ ------------ Total Distributions $ 49.6 $ 41.0 $ 205.6 $ 154.0 ============ ============ ============ ============ RECONCILIATION OF EBITDA TO NET INCOME EBITDA (1) $ 80.5 $ 68.5 $ 300.8 $ 281.2 Minority Interest (13.8) (11.0) (50.0) (44.5) Interest Expense, Net (11.8) (11.1) (43.9) (47.6) Depreciation and Amortization (17.2) (17.1) (67.5) (66.2) Income taxes (1.0) 0.7 (4.8) (3.6) Equity AFUDC (included in Other Income (Expense)) 0.0 0.1 0.1 0.3 ------------ ------------ ------------ ------------ Net Income $ 36.7 $ 30.1 $ 134.7 $ 119.6 ============ ============ ============ ============
NORTHERN BORDER PARTNERS, L.P. SUMMARY SEGMENT INFORMATION --------------------------- (Unaudited)
FOURTH QUARTER YEAR TO DATE 2004 2003 2004 2003 -------- -------- -------- -------- NATURAL GAS GATHERING AND PROCESSING SEGMENT Operating Results (4): Volumes (MMcf/d): Gathering 1,048 998 1,022 1,037 Processing 58 54 55 52 Financial Results (In Millions): Operating Revenue $ 54.6 $ 38.8 $ 184.7 $ 154.3 -------- -------- -------- -------- Operating Expenses Product Purchases 32.2 20.0 103.2 80.8 Operations and Maintenance 9.6 12.1 35.9 42.8 Depreciation and Amortization (2) 3.7 3.6 14.8 232.1 Taxes Other Than Income 0.7 0.4 2.5 1.7 -------- -------- -------- -------- Total Operating Expenses 46.2 36.1 156.4 357.4 -------- -------- -------- -------- Operating Income 8.4 2.7 28.3 (203.1) Interest Expense, Net (0.1) (0.1) (0.4) (0.6) Other Income (Expense) 0.0 0.1 0.2 3.9 Equity Earnings from Investments 3.5 3.5 16.4 16.8 -------- -------- -------- -------- Income Before Income Taxes 11.8 6.2 44.5 (183.0) Income Taxes 0.0 0.0 0.0 0.0 -------- -------- -------- -------- Net Income 11.8 6.2 44.5 (183.0) ======== ======== ======== ======== EBITDA (1) $ 15.6 $ 9.9 $ 59.7 $ 49.7 ======== ======== ======== ======== Distributions Received from Equity Investments $ 3.4 $ 0.2 $ 13.9 $ 16.3 ======== ======== ======== ======== RECONCILIATION OF EBITDA TO NET INCOME EBITDA (1) $ 15.6 $ 9.9 $ 59.7 $ 49.7 Interest Expense, Net (0.1) (0.1) (0.4) (0.6) Depreciation and Amortization (3.7) (3.6) (14.8) (232.1) Income taxes 0.0 0.0 0.0 0.0 -------- -------- -------- -------- Net Income $ 11.8 $ 6.2 $ 44.5 ($ 183.0) ======== ======== ======== ========
NORTHERN BORDER PARTNERS, L.P. SUMMARY SEGMENT INFORMATION --------------------------- (Unaudited)
FOURTH QUARTER YEAR TO DATE 2004 2003 2004 2003 -------- -------- -------- -------- COAL SLURRY PIPELINE SEGMENT Operating Results: Tons of Coal Shipped (In Thousands) 1,306 1,296 4,652 4,451 Financial Results (In Millions): Operating Revenue $ 5.7 $ 5.4 $ 22.0 $ 21.4 -------- -------- -------- -------- Operating Expenses Operations and Maintenance 3.4 3.6 13.3 13.7 Depreciation and Amortization 1.5 0.6 4.5 1.9 Taxes Other Than Income 0.2 0.2 0.8 0.7 -------- -------- -------- -------- Total Operating Expenses 5.1 4.4 18.6 16.3 -------- -------- -------- -------- Operating Income 0.6 1.0 3.4 5.1 Other Income 0.0 0.1 0.0 0.1 -------- -------- -------- -------- Income From Continuing Operations Before Income Taxes 0.6 1.1 3.4 5.2 Income Taxes 0.0 0.3 0.3 1.1 -------- -------- -------- -------- Income From Continuing Operations 0.6 0.8 3.1 4.1 Cumulative Effect of Change in Accounting Principle, net of tax 0.0 0.0 0.0 (0.4) -------- -------- -------- -------- Net Income $ 0.6 $ 0.8 $ 3.1 $ 3.7 ======== ======== ======== ======== EBITDA (1) $ 2.1 $ 1.7 $ 7.9 $ 7.1 ======== ======== ======== ======== RECONCILIATION OF EBITDA TO NET INCOME EBITDA (1) $ 2.1 $ 1.7 $ 7.9 $ 7.1 Depreciation and Amortization (1.5) (0.6) (4.5) (1.9) Income taxes 0.0 (0.3) (0.3) (1.1) Cumulative Effect of Change in Accounting Principle, net of tax 0.0 0.0 0.0 (0.4) -------- -------- -------- -------- Net Income $ 0.6 $ 0.8 $ 3.1 $ 3.7 ======== ======== ======== ========
NORTHERN BORDER PARTNERS, L.P. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES --------------------------------------------- (Unaudited: In millions) RECONCILIATION OF EBITDA TO NET INCOME - PROJECTED 2005
Projected 2005 ------------------------------------ Low High ---------------- ---------------- EBITDA $345 $355 Minority Interest ($48) ($49) Interest Expense, Net ($80) ($84) Depreciation and Amortization Expense ($86) ($87) Income Taxes ($4) ($5) ================ ================ Net Income* $126 $131 ================ ================
*The reconciliation of EBITDA and Net Income does not total due to use of ranges for the various components of the reconciliation. RECONCILIATION OF EBITDA TO DISTRIBUTABLE CASH FLOW - PROJECTED 2005
Projected 2005 ------------------------------------ Low High ---------------- ---------------- EBITDA (from above) $345 $355 Interest Expense, Net ($80) ($84) Maintenance Capital ($30) ($35) Distributions to Minority Interest ($56) ($58) Other ($2) ($3) ================ ================ Distributable Cash Flow** $174 $182 ================ ================ Distributable Cash Flow per Unit $3.50 $3.70 ================ ================
**The reconciliation of EBITDA and Distributable Cash Flow does not total due to use of ranges for the various components of the reconciliation. -----END PRIVACY-ENHANCED MESSAGE-----