Columbia Pipeline Partners LP, a NiSource Inc. company, has provided its average distribution growth outlook through 2020. Subject to the key assumptions described below, CPPL expects to offer unitholders an average annual distribution growth rate of approximately 20%.
"With approximately US$8 billion in capital being deployed over the next several years at Columbia Pipeline Group, we plan to create value for CPPL unitholders through transparent and long-term distribution growth," Robert C. Skaggs Jr., Chairman and Chief Executive Officer of CPPL said. "Most of this investment is supported by long-term, fee-based, take-or-pay contracts."
CPPL's minimum quarterly distribution is US$0.1675 per unit, or US$0.67 per unit annually. On 29 April, CPPL announced its initial prorated quarterly distribution of US$0.0912 per unit to both common and subordinated unitholders, which covered the portion of the first quarter 2015 between the day following the close of the initial public offering on 11 February, 2015, and 31 March, 2015.
CPPL's business and operations are conducted through its 15.7% interest in CPG OpCo LP and its subsidiaries, which own and operate substantially all of the natural gas transmission, storage and midstream assets of NiSource Inc.'s Columbia Pipeline Group (CPG) unit.
Adapted from press release by Hannah Priestley-Eaton