Columbia Pipeline Partners LP - 10-Q filing on 2015-04-30

Basis of Accounting Presentation

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Formed in Delaware on December 5, 2007, Columbia Pipeline Partners LP (the "Partnership") is a subsidiary of NiSource Inc. (“NiSource”). NiSource is a Delaware corporation and holding company whose subsidiaries provide natural gas, electricity and other products and services to approximately 3.8 million customers located within a corridor that runs from the Gulf Coast through the Midwest to New England. Columbia Pipeline Partners LP Predecessor (the “Predecessor”) is comprised of NiSource’s Columbia Pipeline Group Operations reportable segment.

The Partnership is engaged in regulated interstate gas transportation and storage services for LDCs, marketers and industrial and commercial customers located in northeastern, mid-Atlantic, midwestern and southern states and the District of Columbia along with unregulated businesses that include midstream services, including gathering, treating, conditioning, processing, compression and liquids handling, and development of mineral rights positions. The regulated services are performed under tariffs at rates subject to FERC approval.

Concurrent with the completed IPO, NiSource contributed substantially all of the assets and operations of the Predecessor to Columbia OpCo, a Delaware limited partnership formed by CEG, a wholly owned subsidiary of NiSource and CPG OpCo GP LLC (“OpCo GP”), a wholly owned subsidiary of the Partnership. The contribution is considered to be a reorganization of entities under common control. Subsequent to the IPO, the Partnership owns a 15.7% limited partner interest in Columbia OpCo and CEG owns the remaining 84.3% limited partner interest. CPP GP LLC (“MLP GP”), a wholly owned subsidiary of CEG, serves as the general partner of the Partnership. OpCo GP serves as the general partner for Columbia OpCo. Columbia Pipeline Group Services Company provides services to the Partnership pursuant to an omnibus agreement. MLP GP, the Partnership, Columbia OpCo and OpCo GP have all adopted a fiscal year end of December 31. Through our ownership of Columbia OpCo’s general partner, we control all of Columbia OpCo’s assets and operations. As a result, we consolidate Columbia OpCo and CEG's retained interest of 84.3% is recorded as noncontrolling interest in the Partnership's consolidated financial statements.

For periods subsequent to the closing of the IPO, the financial statements included in this quarterly report are the financial statements and accounting records of the Partnership. For periods prior to the closing of the IPO, the financial statements included in this quarterly report are the financial statements and accounting records of the Predecessor. The consolidated and combined financial statements were prepared as follows:


•	The Condensed Consolidated and Combined Balance Sheets (unaudited) as of March 31, 2015 consists of the consolidated balance sheet of the Partnership, while the combined balance sheet as of December 31, 2014 consists of the Predecessor.


•	The Condensed Statement of Consolidated and Combined Operations (unaudited) for the three months ended March 31, 2015 consists of consolidated results of the Partnership for the period from February 11, 2015 through March 31, 2015 and the combined results of the Predecessor for the period from January 1, 2015 through February 10, 2015 and for the three months ended March 31, 2014.


•	The Condensed Statement of Consolidated and Combined Comprehensive Income (unaudited) for the three months ended March 31, 2015 consists of consolidated results of the Partnership for the period from February 11, 2015 through March 31, 2015 and the combined results of the Predecessor for the period from January 1, 2015 through February 10, 2015 and for the three months ended March 31, 2014.


•	The Condensed Statement of Consolidated and Combined Cash Flows (unaudited) for the three months ended March 31, 2015 consists of consolidated cash flows of the Partnership for the period from February 11, 2015 through March 31, 2015 and the combined cash flows of the Predecessor for the period from January 1, 2015 through February 10, 2015 and for the three months ended March 31, 2014.

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The Condensed Statement of Consolidated and Combined Equity and Partners' Capital (unaudited) for the three months ended March 31, 2015 consists of consolidated activity of the Partnership for the period from February 11, 2015 through March 31, 2015 and the combined activity of the Predecessor for the period from January 1, 2015 through February 10, 2015 and for the three months ended March 31, 2014.

The Condensed Consolidated and Combined Financial Statements (unaudited) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Partnership believes that the disclosures made are adequate to make the information not misleading. These financial statements should be read in conjunction with the Predecessor’s combined financial statements included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2014 (the "2014 Form 10-K"). These financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the Partnership’s results of operations and financial position in accordance with GAAP in the United States of America. Amounts reported in the Condensed Statement of Consolidated and Combined Operations (unaudited) are not necessarily indicative of amounts expected for the respective annual periods.

On September 26, 2014, the NiSource board of directors approved in principle the spin-off of CPG through a distribution to NiSource stockholders of all of the outstanding common stock of CPG. The spin-off is expected to occur on July 1, 2015, subject to the satisfaction of various conditions. There is no assurance that the spin-off will in fact occur. In the event the spin-off does occur, CPG will continue to indirectly own MLP GP, our general partner, 84.3% of the limited partner interests in Columbia OpCo and the limited partnership interests in us that are not owned by the public. Even if the spin-off is not consummated, we expect our future involvement with NiSource will be principally conducted through CEG, our sponsor.