Financing Activity
Inter Pipeline continues to maintain a strong balance sheet and took additional measures throughout 2012 to ensure continued financial flexibility. During the year, $2.3 billion of committed credit facilities were extended by one year. In May, $400 million of senior medium term notes were issued at an attractive interest rate. To maintain a strong equity position, Inter Pipeline raised over $200 million in new equity capital through a highly successful distribution reinvestment program over the course of the year. At December 31, Inter Pipeline had access to approximately $700 million in unutilized credit capacity.
Debt levels were prudently managed during the year. Inter Pipeline's total outstanding debt balance was approximately $3.1 billion at December 31, resulting in a total debt to capitalization ratio of 65.3%. Excluding approximately $1.7 billion of non-recourse debt held by Inter Pipeline (Corridor) Inc., Inter Pipeline's recourse debt to capitalization ratio remained relatively low at 47.0%.
Inter Pipeline continues to maintain strong investment grade credit ratings, supported by our stable business performance and prudently capitalized balance sheet. Inter Pipeline is well positioned to finance its long term capital expenditure program.
Conference Call & Webcast
Inter Pipeline will hold a conference call and webcast today at 2:30 p.m. (Mountain Time) / 4:30 p.m. (Eastern Time) to discuss fourth quarter and year end 2012 financial and operating results.
To participate in the conference call, please dial 866-226-1792 or 416-340-2216. A pass code is not required. A recording of the call will be available for replay until February 28, 2013, by dialling 800-408-3053 or 905-694-9451. The pass code for the replay is 4511704.
A webcast of the conference call can be accessed on Inter Pipeline's website at www.interpipelinefund.com by selecting "Investor Relations" then "Webcasts & Conference Calls". An archived version of the webcast will be available for approximately 90 days.
Selected Financial and Operating Highlights----------------------------------------------------------------------------(millions of dollars, except where noted) Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011----------------------------------------------------------------------------Pipeline volumes (000 b/d) Oil sands transportation(1) 838.2 769.4 812.6 786.2 Conventional oil pipelines 176.7 175.7 175.5 170.0 -------------------------------------------- Total pipeline volumes 1,014.9 945.1 988.1 956.2Extraction production(1) (000 b/d) Ethane 72.9 69.0 72.6 73.2 Propane plus 33.0 30.2 35.0 33.8 -------------------------------------------- Total extraction production 105.9 99.2 107.6 107.0Revenue Oil sands transportation $ 84.1 $ 71.3 $ 300.3 $ 284.8 NGL extraction $ 133.5 $ 129.1 $ 499.9 $ 584.6 Conventional oil pipelines $ 62.0 $ 46.3 $ 231.2 $ 177.8 Bulk liquid storage $ 38.8 $ 26.5 $ 155.6 $ 104.4 --------------------------------------------Total revenue $ 318.4 $ 273.2 $ 1,187.0 $ 1,151.6Net income $ 57.3 $ 45.8 $ 307.2 $ 247.9 Per unit (basic & diluted) $ 0.21 $ 0.17 $ 1.14 $ 0.95Funds from operations(2) $ 100.9 $ 90.1 $ 422.6 $ 394.2 Per unit(2) $ 0.37 $ 0.35 $ 1.57 $ 1.52Cash distributions declared $ 73.4 $ 65.1 $ 285.2 $ 251.7 Per unit $ 0.2675 $ 0.2475 $ 1.0550 $ 0.9675Payout ratio before sustaining capital(2) 72.8% 72.3% 67.5% 63.9%Payout ratio after sustaining capital(2) 86.0% 78.5% 74.6% 67.2%Capital expenditures Growth(2) $ 125.7 $ 34.2 $ 339.5 $ 132.6 Sustaining(2) $ 15.6 $ 7.2 $ 40.1 $ 19.4 --------------------------------------------Total capital expenditures $ 141.3 $ 41.4 $ 379.6 $ 152.0
