Q3 2024 Earnings Summary
- Boardwalk Pipelines is performing very well and anticipates funding growth projects using its own balance sheet.
- Boardwalk is likely to maintain distributions to Loews at or near current levels while financing these prospective projects.
- Despite ongoing shareholder litigation, the company remains very confident in their case, expecting final resolution in 2025.
- Boardwalk Pipelines anticipates significant capital expenditures in the coming years, which may impact its future cash flow and financial stability.
- Ongoing shareholder litigation for Boardwalk continues, with the Delaware Supreme Court expected to rule by fall 2025, introducing legal uncertainties that could affect Loews.
- While Boardwalk plans to maintain distributions to Loews at or near current levels, funding future projects may strain resources, potentially affecting Loews' income from this subsidiary.
| Topic | Previous Mentions | Current Period | Trend |
|---|---|---|---|
Boardwalk Pipelines | Consistently emphasized, higher re-contracting rates, growth projects, and Bayou Ethane acquisition. | Strong EBITDA growth (>20% YoY), net income up, financed via own balance sheet, limited near-term capex. | Consistently discussed, performance remains positive |
Boardwalk Shareholder Litigation | No mention in Q2, Q1, or Q4. | Delaware Supreme Court hearing expected spring 2025, ruling likely summer/fall 2025. | New topic in Q3 |
CNA Combined Ratio | Q2 at 94.8%, Q1 at 94.6%, Q4 showed full-year ratio at 93.5%. Overall profitable but slightly higher cat losses. | Rose to 97.2% (vs. 94.3% last year), driven by catastrophe losses (Hurricane Helene) and pressure on commercial auto, management liability. | Consistently covered; slight negative shift in Q3 |
Loews Hotels | Q2: Impacted by higher interest expense and depreciation. Q1: Occupancy challenges in Orlando, new Arlington property costs. Q4: Ongoing expansions (Arlington). | $64M Adjusted EBITDA (up from $60M), but net loss of $8M due to impairment charge and higher depreciation/interest expense. | Recurring topic; profitability pressured by new projects |
Leadership Changes | Q2: CNA CEO Dino Robusto retiring Dec 2024; Doug Worman named successor. Loews CEO change also announced effective end of 2024. Q1: Only changes at Boardwalk. | James Tisch leaving CEO role in 2 months, moving to Chairman. | Continuing leadership transitions at Loews and CNA |
Share Repurchase | Only discussed in Q4 2023: 14M shares repurchased for $852M. | No mention in Q3 about a share repurchase program. | Previously mentioned in Q4, not repeated |
Emphasis on Net Income/BVPS | Q2, Q1, Q4: Repeated focus on strong earnings, book value increases, and subsidiary performance. | Net income rose to $401M (vs. $253M), book value/share at $79.28 (from $70.69 at end of 2023). | Consistent focus on growth in earnings and BVPS |
Higher Interest Rates | Q2: Raised Loews Hotels’ interest expense. Q1: No major effect yet; staggering maturities but anticipating future impact. Q4: No mention | Mentioned as driver of higher expenses for new hotel property. | Ongoing concern, gradually increasing impact |
AI Demand for Boardwalk | Q2: No mention. Q1: Referenced AI-driven data centers; new gas-fired plants may be needed. Q4: No mention | Highlighted AI/data centers as driving electricity demand and boosting natural gas usage. | Re-emerged in Q3 after earlier Q1 reference |
-
Boardwalk Funding and Capex Plans
Q: How will Boardwalk fund growth projects and when will capex occur?
A: Boardwalk is performing well and expects to finance all its capital needs using its own balance sheet. The company anticipates maintaining distributions to Loews at or near current levels while funding these projects. Significant capital expenditures are not expected for a few years due to the lead times involved. -
Shareholder Litigation Timeline
Q: When do you expect a resolution of the shareholder litigation?
A: The Delaware Supreme Court is likely to hear the plaintiff's appeal in spring 2025, with a ruling expected in summer or fall of 2025. The company remains very confident in their case.
Research analysts covering LOEWS.