Boardwalk Pipeline Partners Reports Fourth Quarter and Year-End 2006 Results.

OWENSBORO, Ky. -- Boardwalk Pipeline Partners, LP (NYSE:BWP) announced today its results for the fourth quarter and year ended December 31, 2006, which included the following items:

* Income before income taxes of $65.2 million for the quarter and $197.8 million for the year ended December 31, 2006, a 3% decrease and 23% increase from $67.3 million and $160.5 million in the comparable 2005 periods;

* Operating revenues of $171.5 million for the quarter and $607.6 million for the year ended December 31, 2006, a slight increase for the quarter and 8% increase for the year from $170.9 million and $560.5 million in the comparable 2005 periods;

* Earnings before interest, taxes, depreciation and amortization (EBITDA) of $98.5 million for the quarter and $331.5 million for the year ended December 31, 2006, a 2% decrease and 15% increase from $100.7 million and $289.0 million in the comparable 2005 periods.

The financial information presented includes the results of operations of Boardwalk Pipeline Partners, LP and its subsidiaries and, for periods prior to the Partnership's initial public offering in November 2005, its predecessor, Boardwalk Pipelines, LP and its subsidiaries. Subsequent to November 2005, with the exception of certain income-based state taxes, the Partnership no longer includes income taxes in its results of operations. As a result, for the quarter and year ended December 31, 2006, the Partnership's net income approximates its income before income taxes.

Fourth quarter and year-end 2006 operating results were driven primarily by the following:

* Continued strong environment for parking-and-lending and storage services due to favorable natural gas price spreads and high volatility in the forward price of natural gas;

* Strong demand for firm transportation services due to wide natural gas basis differentials primarily between South and East Texas and other points on the Partnership's system;

* Lower interruptible transportation revenues of $6.7 million and $10.5 million, respectively, for the fourth quarter and year ended 2006 compared to 2005 resulting from unseasonably warm weather in our market areas during the 2006 fourth quarter and higher interruptible revenues in the third and fourth quarters of 2005 due to supply disruptions caused by Hurricanes Katrina and Rita;

* Higher EBITDA of $14.8 million and $23.5 million, respectively, in the fourth quarter and year ended 2006 resulting from hurricane-related insurance recoveries in the fourth quarter of 2006 and a reduction in hurricane-related casualty losses incurred in the third and fourth quarters of 2005;

* A $12.2 million gain on the sale of storage gas related to the Western Kentucky Phase I storage expansion project in the fourth quarter of 2005.

Expansion capital expenditures were $74.4 million for the quarter and $158.6 million for the year ended December 31, 2006. Maintenance capital expenditures were $2.1 million for the quarter and $38.1 million for the year ended December 31, 2006.

Earnings Per Unit

Earnings per limited partner unit for the fourth quarter and year ended December 31, 2006, of $0.55 and $1.85, respectively, for both common and subordinated units, have been reduced by an assumed allocation to the general partner's incentive distribution rights (IDRs) in accordance with generally accepted accounting principles applicable to companies having two classes of securities (EITF No. 03-6). Under EITF No. 03-6, earnings are allocated to participating securities in accordance with contractual participation rights assuming that all earnings for the period were distributed. The assumed allocation to the general partner's IDRs was a result of the Partnership's earnings exceeding the threshold in its partnership agreement for allocation of a portion of distributions to the IDRs. Payments made on account of the IDRs would be determined in relation to actual declared distributions and not based on the assumed allocation required by EITF 03-6.

The following schedule provides a reconciliation of limited partners' interest in net income as reported to net income allocable to common limited partner units in accordance with EITF No. 03-6 utilized in calculating earnings per common and subordinated limited partner unit.

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Conference Call

The Partnership has scheduled a conference call for February 12, 2007, at 8:00 a.m. CT, to review the fourth quarter and annual results. The earnings call may be accessed via the Boardwalk website at www.boardwalkpipelines.com. Please go to the website at least 15 minutes before the broadcast to register and download and install any necessary audio software. Those interested in participating in the question and answer session of the conference call should dial [phone]. The PIN number to access the call is 82135639.

Replay

An audio replay will also be available on the Boardwalk website www.boardwalkpipelines.com immediately following the call.

Non-GAAP Financial Measure - EBITDA

EBITDA is used as a supplemental financial measure by management and by external users of the Partnership's financial statements, such as investors, commercial banks, research analysts, and rating agencies, to assess the Partnership's operating and financial performance, ability to generate cash and return on invested capital as compared to those of other companies in the natural gas transportation, gathering, and storage business. EBITDA should not be considered an alternative to net income, operating income, cash flow from operating activities, or any other measure of financial performance or liquidity presented in accordance with generally accepted accounting principles (GAAP). EBITDA is not necessarily comparable to a similarly titled measure of another company.

The following table presents a reconciliation of the Partnership's EBITDA to its net income, the most directly comparable GAAP financial measure, for each of the periods presented below.

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About Boardwalk

Boardwalk Pipeline Partners, LP is a limited partnership engaged, through its subsidiaries, Texas Gas Transmission, LLC and Gulf South Pipeline Company, LP, in the interstate transportation and storage of natural gas. Boardwalk owns and operates interstate natural gas pipeline systems, comprised of an aggregate of approximately 13,400 miles of pipeline and underground storage fields having aggregate working gas capacity of approximately 146 Bcf.

Forward-Looking Statements

Statements contained in this press release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management. A discussion of the important risk factors and other considerations that could materially impact these matters, as well as the Partnership's overall business and financial performance, can be found in the reports and other documents filed by the Partnership and its predecessor with the Securities and Exchange Commission. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this press release. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to its forward-looking statements to reflect any change in the Partnership's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

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