Despite low natural gas prices, Boardwalk Pipeline Partners LP saw 3Q2011 revenue gains as the company continues to implement its 2Q2011 plans for growth through pipeline and storage expansions.

“Seasonal Nymex spreads have remained depressed, causing substantially lower parking and lending revenues this year and slightly lower storage revenues,” CEO Stan Horton said during an earnings conference call Monday. “Despite this weakness, overall revenues are higher than last year primarily due to pipeline expansion projects.”

While noting that pipelines and storage would remain its core business, Horton said, “Boardwalk is now focused on offering a greater array of new services to our customers while maintaining our current risk profile.

“Although we have a lot of work ahead of us, I’m pleased with the amount of progress we’ve made in achieving our strategic vision that we laid out just a few months ago.”

Boardwalk 3Q2011 operating revenues were $268.9 million, a 4% increase from $257.6 million during 3Q2010. However, the company’s net income took a bit of a dive for the quarter as it dropped 15% from $55.8 million during 3Q2010 to $47.2 million during 3Q2011.

The company said operating results for the third quarter 2011 were primarily driven by:

Boardwalk has had an extremely busy October as a unit of the company announced earlier in the month that it plans to build a $90 million gathering system in northeastern Pennsylvania to connect Southwestern Energy Co. wells in the region to Tennessee Gas Pipeline Co.’s Line 300 (see Shale Daily, Oct. 11). At mid-month Boardwalk and a joint venture it has formed with an affiliate of its general partner agreed to pay $550 million in cash to acquire Petal Gas Storage LLC and Hattiesburg Gas Storage Co. from Enterprise Products Partners LP (see Daily GPI, Oct. 18).

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