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 about 4.5x-5.0x in both 2020 and 2021. We expect Boardwalk's capital spending will remain relatively high in 2020 as the company focuses on growth projects backed by long-term contracts. We expect the company to re-contract at lower rates, but also grow in scale as new growth projects come online. We would lower the rating on Boardwalk if the company's growth projects are delayed or experience cost overruns, or if EBITDA fell below our base case expectations, leading to leverage above 5.5x on a sustained basis. EBITDA declines would likely be driven by some combination of lower contract renewal rates,

...The company's contract profile is strong compared with peers. Most volumes are transported under fixed-fee, take-or-pay style contracts with investment grade counterparties, effectively shielding the company from commodity risk and volumetric risk. Boardwalk recently recontracted many of its legacy contracts, supporting the weighted average length of its contract profile, which is currently about seven years. We expect leverage to remain within the 4.5x-5.0x range, despite modestly lower contract renewal rates. We expect EBITDA to generally remain in the $775 million area over the next few years while debt levels decline incrementally as the company generates free cash flow and works to support its balance sheet. We expect capital expenditures (capex) to be elevated in 2020 at about $450 million, but return to $250 million-$300 million annual run rate spending in 2021 and beyond. We expect dividends to remain flat at about $100 million annually. Loews Corp will continue to provide parental...

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