RBC Capital Markets MLP Conference Dallas, TX

Transcription

1 RBC Capital Markets MLP Conference 2007 Dallas, TX November 15-17, 17, 2007

2 2 FORWARD-LOOKING STATEMENTS DISCLOSURE NYSE:BWP Statements made at this conference or in the materials distributed in conjunction with this conference that contain "forward-looking statements" include, but are not limited to, statements using the words believe, expect, plan, intend, anticipate, estimate, project, should and similar expressions, as well as other statements concerning our future plans, objectives, and expected performance, including statements with respect to the completion, cost, timing and financial performance of expansion projects. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements speak only as of the date they are made, and the company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein or made at this conference to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Important risk factors that could cause our actual results to differ from those expressed in the forward-looking statements contained in this presentation or discussed at this conference are discussed in detail in our Annual Report on Form 10-K for the year ended December 31, 2006 and other filings made by us with the Securities and Exchange Commission, copies of which may be accessed from our website at or from the SEC s website at Given the risk factors discussed in these documents, investors and analysts should not place undue reliance on forward-looking statements. NON-GAAP FINANCIAL MEASURES This presentation includes certain non-gaap financial measures, such as EBITDA (earnings before interest, taxes, depreciation and amortization), when describing the historical and projected results of operations and financial performance of Boardwalk Pipeline Partners, LP. Included at the end of this presentation is additional information regarding our EBITDA, including a reconciliation of EBITDA to the most directly comparable GAAP measure, net income.

3 ASSET OVERVIEW

4 4 BOARDWALK OVERVIEW Complementary interstate pipelines Gulf South Pipeline: web-like system Texas Gas Transmission: long-haul CHICAGO Connectivity to other interstate pipelines allows Boardwalk to serve off-system markets Northeast, Midwest, Southeast and Florida OWENSBORO, KY Key statistics 13,400 miles of pipeline before expansions 3.7 Bcf/d average daily throughput (2006) 11 underground storage fields with working gas capacity of 146 Bcf DALLAS HOUSTON Four expansions accessing new supply sources Estimated $3.7 billion capex ~1,000 miles of large-diameter pipe Projects coming online in

5 5 REVENUES PREDOMINANTLY SUPPORTED BY FIRM CONTRACTS Firm transportation, storage and storage-linked services ~80% of revenue under firm contracts 62% of revenue represents capacity reservation charges Interruptible Services and Other Service Type 21% Payable monthly regardless of utilization FIRM CONTRACTS Utilization Charges FIRM CONTRACTS Capacity Reservation Charges Note: As of December 31, 2006

6 INDUSTRY THEME: Unconventional gas plays are reshaping gas flow dynamics

7 ESTIMATED U.S. PRODUCTION BY REGION Growth from (Bcf/d) WEST COAST 0.7 Bcf/d (0.3) Bcf/d ROCKIES (includes San Juan) 12.0 Bcf/d +2.9 Bcf/d MIDCONTINENT/GULF COAST (Anadarko, Arkoma, Caney- Woodford, Fayetteville, Bossier, Cotton Valley, TX-LA-MS Salt) 20.6 Bcf/d +5.0 Bcf/d NORTHEAST 3.0 Bcf/d +0.9 Bcf/d PERMIAN 4.1 Bcf/d +0.6 Bcf/d GULF OF MEXICO 9.4 Bcf/d (2.0) Bcf/d Source: Boardwalk Research Legend: 2006 Data +/- Growth to 2015

8 GO EAST, YOUNG MAN! Rockies +3-4 Bcf/d 2 Bcf/d LEBANON Caney/Woodford Shale +1 Bcf/d +1-2 Bcf/d Fayetteville Shale 1 Bcf/d KOSCIUSKO Barnett Shale +5-6 Bcf/d Bossier Sands 5 Bcf/d PERRYVILLE TRANSCO STATION 85 HENRY HUB

9 PRODUCTION REGIONS AND PIPELINE CAPACITY Growth in shale production creates an environment for growing pipeline capacity Rockies +3-4 Bcf/d 2 Bcf/d LEBANON Caney/Woodford Shale +1 Bcf/d +1-2 Bcf/d Fayetteville Shale 1 Bcf/d KOSCIUSKO Barnett Shale +5-6 Bcf/d Bossier Sands 5 Bcf/d PERRYVILLE TRANSCO STATION 85 HENRY HUB

10 WORLD-CLASS COMPANIES ADDED TO OUR CUSTOMER BASE

11 OPTIONALITY IS THE KEY No longer moving from A to B Fayetteville and Greenville Laterals, Gulf Crossing, East Texas to Mississippi, and Southeast Expansions give options to customers to drop off gas to new and different markets New interconnects for each project

12 INTERCONNECTIONS WITH OTHER PIPELINES ALLOW BOARDWALK TO SERVE OFF-SYSTEM MARKETS Project Boardwalk Company Interconnecting Company (Zone) East Texas to Mississippi Expansion Gulf South Texas Gas (Zone 1) ANR Pipeline (Zone 2) Trunkline (Mainline) Columbia Gulf (Mainline) Southeast Supply Header (N/A) Texas Eastern Florida Gas Southeast Expansion Gulf South SONAT (Zone 1) Tentative Transco (Station 85 pool) Florida Gas (Zone 3) via Destin Gulfstream via Destin Tennessee (500 Leg) Greenville Lateral Texas Gas Columbia Gulf (Mainline) ANR Pipeline (Zone 2) Trunkline (Mainline) Tennessee (800 Leg) Tennessee (100 Leg) Texas Eastern (M1) SONAT Gulf South (Kosci)

13 RBC Capital Markets MLP Conference 2007 Dallas, TX November 15-17, 17, 2007