Boardwalk Pipeline Partners L.P.

S&P Global Ratings' stable outlook on Boardwalk Pipeline Partners L.P. reflects our expectation that the company's adjusted debt-to-EBITDA ratio will be 4.5x to 5.0x in both 2019 and 2020. We expect Boardwalk's capital spending will remain relatively high in 2019 as the company focuses on growth projects backed by long term contracts. While the company still has some meaningful contract expirations in 2019 and 2020, we expect lower contracting rates to be offset by growth projects that were recently put in place or will be put in place in 2019 and 2020. The largest growth project that the company has put in place is the Coastal Bend Header project, of which Phase 2 was put in place in the fourth

...We expect the average contract length to improve as growth projects come online. The Coastal Bend Header project, of which Phase 2 came online in the fourth quarter of 2018, has added 1.4 billion cubic feet/day (bcf/d) of firm natural gas transportation capacity and has a weighted average contract life approaching 20 years. In 2019, we expect the partnership's capital spending budget to be $450 million to $500 million, of which approximately $150 million is for sustaining capital expenditures. Modestly lower contract renewal rates. Boardwalk has recontracted and continues to recontract expansion projects that it placed into service between 2008 and 2010, including its Fayetteville and Greenville lateral pipelines and Gulf Crossing. In late 2017, the company extended its contract with Southwestern Energy on the Fayetteville and Greenville Laterals through 2030, at much lower rates. Recontracting at Gulf Crossing, while still ongoing, has improved with the expectation of increased natural...

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