|
JP Energy Partners LP Announces Third Quarter 2015 Financial Results
JP Energy Partners LP (NYSE:JPEP) (“JP Energy”, “we,” “our,” or “us”)
today announced third quarter 2015 financial and operating results.
JP Energy reported Adjusted EBITDA of $10.4 million for the third
quarter of 2015, compared to $9.6 million for the third quarter of 2014,
and reported a loss from continuing operations of $8.4 million for the
third quarter of 2015, compared to a loss from continuing operations of
$5.6 million for the third quarter of 2014. Distributable Cash Flow was
$8.6 million for the third quarter of 2015, resulting in a distribution
coverage ratio for the quarter of approximately 0.7x.
For the nine months ended September 30, 2015, JP Energy reported $32.7
million of Adjusted EBITDA, a 51% increase compared to $21.6 million for
the first nine months of 2014, and reported a loss from continuing
operations of $12.7 million for the first nine months of 2015 compared
to a loss from continuing operations of $24.8 million for the same
period of 2014. Distributable Cash Flow was $26.8 million for the first
nine months of 2015 and the distribution coverage ratio was
approximately 0.7x.
“Our third quarter results reflect the investments we have made in our
integrated asset base over the last year, resulting in more than 50%
Adjusted EBITDA growth through the first nine months of 2015,” said J.
Patrick Barley, Executive Chairman and Chief Executive Officer of JP
Energy. “While many of our key assets continued to report strong volume
and Adjusted EBITDA growth along with market share gains, results were
partially offset by continued market pressures, particularly in our
Crude Oil Supply and Logistics business due to the impact of lower crude
oil prices and increased competition for barrels. We continue to have
strong support from our sponsor, both in pursuit of growth opportunities
and in the form of absorbing a portion of our corporate overhead this
quarter as we continue to execute on our plan to reduce the overall cost
structure for the company going forward. We expect to return to a
distribution coverage ratio of 1.0x in the fourth quarter and are
targeting a 1.0x distribution coverage ratio for the full year of 2016
as well.”
Review of Segment Performance
NGL Distribution and Sales – Adjusted EBITDA for the NGL Distribution
and Sales segment was $6.1 million for the third quarter of 2015,
compared to $2.3 million for the third quarter of 2014. The increase was
primarily a result of higher average NGL and refined products sales
margins due to more favorable market conditions.
Crude Oil Pipelines and Storage – Adjusted EBITDA for the Crude Oil
Pipelines and Storage segment was $6.0 million for the third quarter of
2015, compared to $5.3 million for the third quarter of 2014. The
increase was primarily due to an increase in pipeline throughput
following expansions of the Silver Dollar Pipeline System and the
addition of a significant new customer on the system during the quarter.
Crude Oil Supply and Logistics – Adjusted EBITDA for the Crude Oil
Supply and Logistics segment was a loss of $1.3 million for the third
quarter of 2015, compared to a gain of $5.5 million for the third
quarter of 2014. The decrease was primarily due to lower margins
associated with continued low crude oil prices driving lower production
volumes and creating more competition for crude purchases. This decline
was partially offset by an increase in crude oil sales volumes, which
was primarily due to the growth in our market share in the Permian Basin
from Silver Dollar Pipeline System expansions and customer additions.
Refined Products Terminals and Storage – Adjusted EBITDA for the Refined
Products Terminals and Storage segment was $2.3 million for the third
quarter of 2015, compared to $2.5 million for the third quarter of 2014.
The slight decrease was primarily due to moderately lower margins from a
shift in refined product volume mix along with a one-time operating
expense item, mostly offset by higher refined product sales from the
addition of butane blending capabilities at our North Little Rock
Terminal earlier in 2015.
Recent Developments
Expansions of Silver Dollar Pipeline System
In February 2015, we signed a 10-year fee based gathering agreement with
Discovery Natural Resources LLC (“Discovery”) to construct and operate
an extension of our Silver Dollar Pipeline crude oil gathering system
into the core of the Midland Basin. The agreement with Discovery is
supported by a dedication of approximately 53,000 acres in Reagan,
Glasscock, Sterling and Irion Counties. In addition to pipeline
gathering, we also provide crude oil trucking, marketing and related
services for Discovery. The gathering system extension will consist of
approximately 55 miles of pipeline, extending from southern Reagan
County north into Glasscock County across the Midland Basin. In
September 2015, we completed Phase I of the project: The construction
and commissioning of 32 miles of pipeline and associated truck and
measurement facilities. Phase II of the construction is expected to be
completed in January 2016.
In February 2015, we also commissioned a new 70,000 barrel crude oil
storage tank which increased our total crude oil storage capacity on the
Silver Dollar Pipeline to 110,000 barrels at that time.
In April 2015, we announced that we have executed an interconnection
agreement with an affiliate of Magellan Midstream Partners, L.P.
(“Magellan”) to connect our Silver Dollar Pipeline System to Magellan’s
Longhorn pipeline at the Barnhart Terminal in Crockett County, Texas.
The interconnection provides producers with a third takeaway option from
the Silver Dollar Pipeline System and direct access from the core of the
Midland Basin to end markets in Houston. The connection was completed
and began service in September 2015. As part of the Magellan project, we
also added 30,000 barrels of crude oil storage which further increased
the total crude oil storage capacity on the Silver Dollar Pipeline to
140,000 barrels.
Acquisition of Southern Propane Inc.
On May 8, 2015, we acquired substantially all of the assets of Southern
Propane Inc. (“Southern”), a Houston-based industrial and commercial
propane distribution and logistics company for approximately $16.3
million. The acquisition was funded through the use of borrowings from
our revolving credit facility and the issuance of approximately 267,000
of our common units. The Southern acquisition expanded the asset base
and market share of our NGL Distribution and Sales segment, specifically
the acceleration of our entry into the Houston, Texas market as well as
the expansion of our industrial, non-seasonal customer base.
Disposition of Crude Oil Supply and Logistics Assets
On September 30, 2015, we entered into an asset purchase agreement
pursuant to which we intend to sell certain crude oil supply and
logistics assets for a sales price of $1.8 million. We closed the
transaction on November 2, 2015 and expect to recognize a gain on
disposal of approximately $1.0 million.
Cash Distributions
On October 27, 2015, JP Energy announced that it would pay on November
13, 2015, to unitholders of record on November 6, 2015, a cash
distribution of $0.3250 per common and subordinated unit for the three
month period ended September 30, 2015.
Earnings Conference Call Information
We will hold a conference call on Tuesday, November 10, 2015, at 9:00
a.m. Central Time (10:00 a.m. Eastern Time) to discuss our third quarter
2015 financial results. The call can be accessed live over the telephone
by dialing (877) 407-0784, or for international callers, (201) 689-8560.
A replay will be available shortly after the call and can be accessed by
dialing (877) 870-5176, or for international callers (858) 384-5517. The
passcode for the replay is 13623247. The replay will be available until
November 24, 2015.
Interested parties may also listen to a simultaneous webcast of the
conference call by logging onto JP Energy’s website at www.jpenergypartners.com
in the Investors section. A replay of the webcast will also be available
for approximately 30 days following the conference call.
About JP Energy Partners LP
JP Energy Partners LP (JPEP) is a publicly traded, growth-oriented
limited partnership that owns, operates, develops and acquires a
diversified portfolio of midstream energy assets. Our operations
currently consist of: (i) crude oil pipelines and storage; (ii) crude
oil supply and logistics; (iii) refined products terminals and storage;
and (iv) NGL distribution and sales, which together provide midstream
infrastructure solutions for the growing supply of crude oil, refined
products and NGLs in the United States. To learn more, please visit our
website at www.jpenergypartners.com.
Use of Non-GAAP Financial Measures
Adjusted EBITDA, distributable cash flow and adjusted gross margin are
supplemental, non-GAAP financial measures used by management and by
external users of our financial statements, such as investors and
commercial banks, to assess:
-
our operating performance as compared to those of other companies in
the midstream sector, without regard to financing methods, historical
cost basis or capital structure;
-
the ability of our assets to generate sufficient cash flow to make
distributions to our unitholders;
-
our ability to incur and service debt and fund capital expenditures;
and
-
the viability of acquisitions and other capital expenditure projects
and the returns on investment of various investment opportunities.
We believe that the presentation of Adjusted EBITDA, distributable cash
flow and adjusted gross margin provides information useful to investors
in assessing our financial condition and results of operations. The GAAP
measures most directly comparable to Adjusted EBITDA and distributable
cash flow are net income (loss) and cash flow from operating activities,
respectively, and the GAAP measure most directly comparable to adjusted
gross margin is operating income (loss). These non-GAAP measures should
not be considered as alternatives to the most directly comparable GAAP
financial measure. Each of these non-GAAP financial measures exclude
some, but not all, items that affect the most directly comparable GAAP
financial measure. Because Adjusted EBITDA, distributable cash flow and
adjusted gross margin may be defined differently by other companies in
the our industry, our definitions of these non-GAAP financial measures
may not be comparable to similarly titled measures of other companies,
thereby diminishing their utility.
We define Adjusted EBITDA as net income (loss) plus (minus) interest
expense (income), income tax expense (benefit), depreciation and
amortization expense, asset impairments, (gains) losses on asset sales,
certain non-cash charges such as non-cash equity compensation, non-cash
vacation expense, non-cash (gains) losses on commodity derivative
contracts (total (gain) loss on commodity derivatives less net cash flow
associated with commodity derivatives settled during the period) and
selected (gains) charges and transaction costs that are unusual or
non-recurring. We define distributable cash flow as Adjusted EBITDA plus
proceeds from the sale of assets, less net cash interest paid, income
taxes paid and maintenance capital expenditures. We define adjusted
gross margin as total revenues minus cost of sales, excluding
depreciation and amortization, and certain non-cash charges such as
non-cash vacation expense and non-cash gains (losses) on derivative
contracts (total gain (losses) on commodity derivatives less net cash
flow associated with commodity derivatives settled during the period).
Forward-Looking Statements
Disclosures in this press release contain “forward-looking statements.”
The words “believe,” “expect,” “anticipate,” “plan,” “intend,”
“foresee,” “should,” “would,” “could” or other similar expressions are
intended to identify forward-looking statements, which are generally not
historical in nature. These forward-looking statements are based on our
current expectations and beliefs concerning future developments and
their potential effect on us. While management believes that these
forward-looking statements are reasonable as and when made, there can be
no assurance that future developments affecting us will be those that we
anticipate. All comments concerning our expectations for future revenues
and operating results are based on our forecasts for our existing
operations and do not include the potential impact of any future
acquisitions. Our forward-looking statements involve significant risks
and uncertainties (some of which are beyond our control) and assumptions
that could cause actual results to differ materially from our historical
experience and our present expectations or projections. Important
factors that could cause actual results to differ materially from those
in the forward-looking statements include, but are not limited to the
price of, and the demand for, crude oil, refined products and NGLs in
the markets we serve; the volumes of crude oil that we gather, transport
and store, the throughput volumes at our refined products terminals and
our NGL sales volumes; the fees we receive for the crude oil, refined
products and NGL volumes we handle; pressures from our competitors, some
of which may have significantly greater resources than us; the cost of
propane that we buy for resale, including due to disruptions in its
supply, and whether we are able to pass along cost increases to our
customers; competitive pressures from other energy sources such as
natural gas, which could reduce existing demand for propane; the risk of
contract cancellation, non-renewal or failure to perform by our
customers, and our inability to replace such contracts and/or customers;
leaks or releases of hydrocarbons into the environment that result in
significant costs and liabilities; the level of our operating,
maintenance and general and administrative expenses; regulatory action
affecting our existing contracts, our operating costs or our operating
flexibility; failure to secure or maintain contracts with our largest
customers, or non-performance of any of those customers under the
applicable contract; competitive conditions in our industry; changes in
the long-term supply of and demand for oil and natural gas; volatility
of fuel prices; actions taken by our customers, competitors and
third-party operators; our ability to complete growth projects on time
and on budget; inclement or hazardous weather conditions, including
flooding, and the physical impacts of climate change; environmental
hazards; industrial accidents; changes in laws and regulations (or the
interpretation thereof) related to the transportation, storage or
terminaling of crude oil and refined products or the distribution and
sales of NGLs; fires, explosions or other accidents; the effects of
future litigation; and other factors discussed from time to time in each
of our documents and reports filed with the Securities and Exchange
Commission. Any forward-looking statement applies only as of the date on
which such statement is made and we do not intend to correct or update
any forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by law.
|
JP ENERGY PARTNERS LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
ASSETS
|
|
|
|
(in thousands, except unit data)
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
8,529
|
|
$
|
3,325
|
|
|
Restricted cash
|
|
|
|
|
-
|
|
|
600
|
|
|
Accounts receivable, net
|
|
|
|
|
75,170
|
|
|
108,725
|
|
|
Receivables from related parties
|
|
|
|
8,531
|
|
|
10,548
|
|
|
Inventory
|
|
|
|
|
14,985
|
|
|
20,826
|
|
|
Prepaid expenses and other current assets
|
|
|
|
10,039
|
|
|
4,915
|
|
|
|
Total Current Assets
|
|
|
|
117,254
|
|
|
148,939
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
296,749
|
|
|
262,148
|
|
|
Goodwill
|
|
|
|
|
254,527
|
|
|
248,721
|
|
|
Intangible assets, net
|
|
|
|
|
141,613
|
|
|
148,311
|
|
|
Deferred financing costs and other assets, net
|
|
|
|
3,920
|
|
|
5,054
|
|
|
|
Total Non-Current Assets
|
|
|
|
696,809
|
|
|
664,234
|
|
|
|
Total Assets
|
|
|
$
|
814,063
|
|
$
|
813,173
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND PARTNERS' CAPITAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
60,504
|
|
$
|
88,052
|
|
|
Payables to related parties
|
|
|
|
|
64
|
|
|
-
|
|
|
Accrued liabilities
|
|
|
|
|
19,449
|
|
|
28,971
|
|
|
Capital leases and short-term debt
|
|
|
|
113
|
|
|
229
|
|
|
Customer deposits and advances
|
|
|
|
4,082
|
|
|
5,050
|
|
|
Current portion of long-term debt
|
|
|
|
564
|
|
|
383
|
|
|
|
Total Current Liabilities
|
|
|
|
84,776
|
|
|
122,685
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
167,737
|
|
|
84,125
|
|
|
Other long-term liabilities
|
|
|
|
|
1,925
|
|
|
5,683
|
|
|
|
Total Liabilities
|
|
|
|
254,438
|
|
|
212,493
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partners' capital
|
|
|
|
|
|
|
|
|
General partner interest
|
|
|
|
|
2,568
|
|
|
-
|
|
|
Common units (22,119,170 and 21,852,219 units authorized as of
September 30, 2015 and December 31, 2014 respectively; 18,464,685
and 18,209,519 units issued and outstanding as of September 30, 2015
and December 31, 2014, respectively)
|
|
295,701
|
|
|
315,630
|
|
|
Subordinated units (18,197,249 units authorized; 18,131,023 and
18,197,249 units issued and outstanding as of September 30, 2015 and
December 31, 2014, respectively)
|
|
261,356
|
|
|
285,050
|
|
|
|
Total Partners' Capital
|
|
|
|
559,625
|
|
|
600,680
|
|
|
|
Total Liabilities and Partners' Capital
|
|
|
$
|
814,063
|
|
$
|
813,173
|
|
JP ENERGY PARTNERS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
(in thousands, except unit and per unit data)
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil sales
|
|
|
|
$
|
210,422
|
|
|
$
|
371,623
|
|
|
$
|
730,859
|
|
|
$
|
1,102,030
|
|
|
|
Crude oil sales - related parties
|
|
|
|
196
|
|
|
|
-
|
|
|
|
196
|
|
|
|
-
|
|
|
|
Gathering, transportation and storage fees
|
|
|
|
6,457
|
|
|
|
8,130
|
|
|
|
20,057
|
|
|
|
23,923
|
|
|
|
Gathering, transportation and storage fees - related parties
|
|
|
|
926
|
|
|
|
-
|
|
|
|
1,206
|
|
|
|
-
|
|
|
|
NGL and refined product sales
|
|
|
|
34,773
|
|
|
|
41,982
|
|
|
|
127,028
|
|
|
|
142,146
|
|
|
|
NGL and refined product sales - related parties
|
|
|
|
-
|
|
|
|
476
|
|
|
|
-
|
|
|
|
7,409
|
|
|
|
Refined products terminals and storage fees
|
|
|
|
3,373
|
|
|
|
3,069
|
|
|
|
9,549
|
|
|
|
7,290
|
|
|
|
Refined products terminals and storage fees - related parties
|
|
|
|
-
|
|
|
|
74
|
|
|
|
-
|
|
|
|
1,521
|
|
|
|
Other revenues
|
|
|
|
|
3,436
|
|
|
|
3,237
|
|
|
|
10,461
|
|
|
|
10,086
|
|
|
|
Total revenues
|
|
|
|
|
259,583
|
|
|
|
428,591
|
|
|
|
899,356
|
|
|
|
1,294,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding depreciation and amortization
|
|
|
|
224,425
|
|
|
|
392,662
|
|
|
|
781,173
|
|
|
|
1,190,859
|
|
|
|
Operating expense
|
|
|
|
|
19,119
|
|
|
|
17,048
|
|
|
|
53,676
|
|
|
|
52,304
|
|
|
|
General and administrative
|
|
|
|
10,669
|
|
|
|
11,315
|
|
|
|
36,132
|
|
|
|
35,196
|
|
|
|
Depreciation and amortization
|
|
|
|
12,343
|
|
|
|
10,395
|
|
|
|
35,768
|
|
|
|
30,569
|
|
|
|
(Gain) loss on disposal of assets, net
|
|
|
|
(14
|
)
|
|
|
533
|
|
|
|
1,395
|
|
|
|
1,193
|
|
|
|
Total costs and expenses
|
|
|
|
|
266,542
|
|
|
|
431,953
|
|
|
|
908,144
|
|
|
|
1,310,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING LOSS
|
|
|
|
|
(6,959
|
)
|
|
|
(3,362
|
)
|
|
|
(8,788
|
)
|
|
|
(15,716
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
(1,514
|
)
|
|
|
(2,406
|
)
|
|
|
(4,069
|
)
|
|
|
(7,957
|
)
|
|
|
Loss on extinguishment of debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,634
|
)
|
|
|
Other income, net
|
|
|
|
|
107
|
|
|
|
-
|
|
|
|
470
|
|
|
|
506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
|
(8,366
|
)
|
|
|
(5,768
|
)
|
|
|
(12,387
|
)
|
|
|
(24,801
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit
|
|
|
|
(82
|
)
|
|
|
158
|
|
|
|
(333
|
)
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING OPERATIONS
|
|
|
|
(8,448
|
)
|
|
|
(5,610
|
)
|
|
|
(12,720
|
)
|
|
|
(24,799
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from discontinued operations
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,608
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
|
|
$
|
(8,448
|
)
|
|
$
|
(5,610
|
)
|
|
$
|
(12,720
|
)
|
|
$
|
(34,407
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per unit
|
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to common units
|
|
|
$
|
(4,215
|
)
|
|
|
|
$
|
(6,273
|
)
|
|
|
|
Weighted average number of common units outstanding
|
|
|
|
18,465,839
|
|
|
|
|
|
18,343,137
|
|
|
|
|
Basic and diluted loss per common unit
|
|
|
$
|
(0.23
|
)
|
|
|
|
$
|
(0.34
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to subordinated units
|
|
|
$
|
(4,233
|
)
|
|
|
|
$
|
(6,447
|
)
|
|
|
|
Weighted average number of subordinated units outstanding
|
|
|
|
18,142,293
|
|
|
|
|
|
18,159,181
|
|
|
|
|
Basic and diluted loss per subordinated unit
|
|
|
$
|
(0.23
|
)
|
|
|
|
$
|
(0.36
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution declared per common and subordinated unit
|
|
|
$
|
0.325
|
|
|
|
|
$
|
0.975
|
|
|
|
|
JP ENERGY PARTNERS LP
NON-GAAP RECONCILIATIONS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
Segment Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
Crude oil pipelines and storage
|
$
|
5,988
|
|
|
$
|
5,301
|
|
|
$
|
17,593
|
|
|
$
|
15,447
|
|
|
|
Crude oil supply and logistics
|
|
(1,276
|
)
|
|
|
5,477
|
|
|
|
394
|
|
|
|
7,139
|
|
|
|
Refined products terminals and storage
|
|
2,261
|
|
|
|
2,525
|
|
|
|
7,601
|
|
|
|
7,666
|
|
|
|
NGL distribution and sales
|
|
6,135
|
|
|
|
2,256
|
|
|
|
23,083
|
|
|
|
9,902
|
|
|
|
Discontinued operations
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
983
|
|
|
|
Corporate and other
|
|
|
(2,661
|
)
|
|
|
(5,966
|
)
|
|
|
(15,971
|
)
|
|
|
(19,502
|
)
|
|
Total Adjusted EBITDA
|
|
|
10,447
|
|
|
|
9,593
|
|
|
|
32,700
|
|
|
|
21,635
|
|
|
|
Depreciation and amortization
|
|
(12,343
|
)
|
|
|
(10,395
|
)
|
|
|
(35,768
|
)
|
|
|
(30,569
|
)
|
|
|
Interest expense
|
|
|
(1,514
|
)
|
|
|
(2,406
|
)
|
|
|
(4,069
|
)
|
|
|
(7,957
|
)
|
|
|
Loss on extinguishment of debt
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,634
|
)
|
|
|
Income tax (expense) benefit
|
|
(82
|
)
|
|
|
158
|
|
|
|
(333
|
)
|
|
|
2
|
|
|
|
Gain (loss) on disposal of assets, net
|
|
14
|
|
|
|
(533
|
)
|
|
|
(1,395
|
)
|
|
|
(1,193
|
)
|
|
|
Unit-based compensation
|
|
(323
|
)
|
|
|
(578
|
)
|
|
|
(875
|
)
|
|
|
(1,163
|
)
|
|
|
Total gain (loss) on commodity derivatives
|
|
3,471
|
|
|
|
(762
|
)
|
|
|
(1,449
|
)
|
|
|
(730
|
)
|
|
|
Net cash (receipts) payments for commodity derivatives
settled during the period
|
|
7,503
|
|
|
|
105
|
|
|
|
15,918
|
|
|
|
(483
|
)
|
|
|
Early settlement of commodity derivatives
|
|
(8,745
|
)
|
|
|
-
|
|
|
|
(8,745
|
)
|
|
|
-
|
|
|
|
Non-cash inventory costing adjustment
|
|
(3,662
|
)
|
|
|
-
|
|
|
|
(2,671
|
)
|
|
|
-
|
|
|
|
Corporate overhead support from general partner
|
|
(3,000
|
)
|
|
|
-
|
|
|
|
(3,000
|
)
|
|
|
-
|
|
|
|
Transaction costs and other
|
|
(214
|
)
|
|
|
(792
|
)
|
|
|
(3,033
|
)
|
|
|
(1,724
|
)
|
|
|
Discontinued operations
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(10,591
|
)
|
|
Net loss
|
|
|
|
$
|
(8,448
|
)
|
|
$
|
(5,610
|
)
|
|
$
|
(12,720
|
)
|
|
$
|
(34,407
|
)
|
|
|
|
|
|
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
Segment Adjusted gross margin
|
|
|
|
|
|
|
|
|
|
Crude oil pipelines and storage
|
$
|
7,120
|
|
|
$
|
6,501
|
|
|
$
|
21,117
|
|
|
$
|
18,868
|
|
|
|
Crude oil supply and logistics
|
|
1,282
|
|
|
|
8,234
|
|
|
|
8,471
|
|
|
|
14,702
|
|
|
|
Refined products terminals and storage
|
|
3,480
|
|
|
|
3,573
|
|
|
|
10,524
|
|
|
|
13,379
|
|
|
|
NGL distribution and sales
|
|
24,709
|
|
|
|
18,635
|
|
|
|
75,320
|
|
|
|
58,540
|
|
|
Total Adjusted gross margin
|
|
36,591
|
|
|
|
36,943
|
|
|
|
115,432
|
|
|
|
105,489
|
|
|
|
Operating expenses
|
|
|
(19,119
|
)
|
|
|
(17,048
|
)
|
|
|
(53,676
|
)
|
|
|
(52,304
|
)
|
|
|
General and administrative
|
|
(10,669
|
)
|
|
|
(11,315
|
)
|
|
|
(36,132
|
)
|
|
|
(35,196
|
)
|
|
|
Depreciation and amortization
|
|
(12,343
|
)
|
|
|
(10,395
|
)
|
|
|
(35,768
|
)
|
|
|
(30,569
|
)
|
|
|
Gain (loss) on disposal of assets, net
|
|
14
|
|
|
|
(533
|
)
|
|
|
(1,395
|
)
|
|
|
(1,193
|
)
|
|
|
Total gain (loss) on commodity derivatives
|
|
3,471
|
|
|
|
(762
|
)
|
|
|
(1,449
|
)
|
|
|
(730
|
)
|
|
|
Net cash (receipts) payments for commodity derivatives
settled during the period
|
|
7,503
|
|
|
|
105
|
|
|
|
15,918
|
|
|
|
(483
|
)
|
|
|
Early settlement of commodity derivatives
|
|
(8,745
|
)
|
|
|
-
|
|
|
|
(8,745
|
)
|
|
|
-
|
|
|
|
Non-cash inventory costing adjustment
|
|
(3,662
|
)
|
|
|
-
|
|
|
|
(2,671
|
)
|
|
|
-
|
|
|
|
Other non-cash items
|
|
|
-
|
|
|
|
(357
|
)
|
|
|
(302
|
)
|
|
|
(730
|
)
|
|
Operating loss
|
|
|
$
|
(6,959
|
)
|
|
$
|
(3,362
|
)
|
|
$
|
(8,788
|
)
|
|
$
|
(15,716
|
)
|
|
JP ENERGY PARTNERS
NON-GAAP RECONCILIATION (CONTINUED)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2015
|
|
Nine months ended
September 30, 2015
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
Net cash provided by operating activities
|
$
|
4,944
|
|
|
|
$
|
24,266
|
|
|
|
Depreciation and amortization
|
|
(12,343
|
)
|
|
|
|
(35,768
|
)
|
|
|
Derivative valuation changes
|
|
|
11,024
|
|
|
|
|
14,625
|
|
|
|
Amortization of deferred financing costs
|
|
(227
|
)
|
|
|
|
(682
|
)
|
|
|
Unit-based compensation
|
|
|
(323
|
)
|
|
|
|
(875
|
)
|
|
|
Loss on disposal of assets
|
|
|
14
|
|
|
|
|
(1,395
|
)
|
|
|
Bad debt expense
|
|
|
|
(307
|
)
|
|
|
|
(999
|
)
|
|
|
Other non-cash items
|
|
|
7
|
|
|
|
|
193
|
|
|
|
Changes in assets and liabilities
|
|
(11,237
|
)
|
|
|
|
(12,085
|
)
|
|
Net loss
|
|
|
|
|
$
|
(8,448
|
)
|
|
|
$
|
(12,720
|
)
|
|
|
Depreciation and amortization
|
|
12,343
|
|
|
|
|
35,768
|
|
|
|
Interest expense
|
|
|
|
1,514
|
|
|
|
|
4,069
|
|
|
|
Income tax expense
|
|
|
|
82
|
|
|
|
|
333
|
|
|
|
(Gain) loss on disposal of assets, net
|
|
(14
|
)
|
|
|
|
1,395
|
|
|
|
Unit-based compensation
|
|
|
323
|
|
|
|
|
875
|
|
|
|
Total gain (loss) on commodity derivatives
|
|
(3,471
|
)
|
|
|
|
1,449
|
|
|
|
Net cash payments for commodity derivatives
settled during the period
|
|
(7,503
|
)
|
|
|
|
(15,918
|
)
|
|
|
Early settlement of commodity derivatives
|
|
8,745
|
|
|
|
|
8,745
|
|
|
|
Non-cash inventory costing adjustment
|
|
3,662
|
|
|
|
|
2,671
|
|
|
|
Corporate overhead support from general partner
|
|
3,000
|
|
|
|
|
3,000
|
|
|
|
Transaction costs and other
|
|
|
214
|
|
|
|
|
3,033
|
|
|
Adjusted EBITDA
|
|
|
$
|
10,447
|
|
|
|
$
|
32,700
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Cash interest paid, net of interest income
|
|
1,238
|
|
|
|
|
3,209
|
|
|
Cash taxes paid
|
|
|
|
-
|
|
|
|
|
450
|
|
|
Maintenance capital expenditures, net
|
|
585
|
|
|
|
|
2,290
|
|
|
Distributable cash flow
|
|
$
|
8,624
|
|
|
|
$
|
26,751
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Distributions
|
|
|
|
|
12,028
|
|
|
|
|
36,040
|
|
|
Amount in excess of (less than) distributions
|
$
|
(3,404
|
)
|
|
|
$
|
(9,289
|
)
|
|
Distribution coverage
|
|
|
0.72x
|
|
|
0.74x
|
|
JP ENERGY PARTNERS
SUPPLEMENTAL OPERATIONAL DATA
(Unaudited)
|
|
|
|
|
|
|
Three months ended September 30,
|
|
Segment
|
|
|
Key Operational Data
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil pipelines and storage
|
|
Crude oil pipeline throughput (Bbls/d) (1)
|
28,240
|
|
20,411
|
|
7,829
|
|
|
Crude oil supply and logistics
|
|
Crude oil sales (Bbls/d)
|
|
65,043
|
|
43,063
|
|
21,980
|
|
|
Refined products terminals and storage
|
|
Terminal and storage throughput (Bbls/d)
|
66,967
|
|
67,628
|
|
(661
|
)
|
|
NGL distribution and sales
|
|
NGL and refined product sales (Mgal/d)
|
175
|
|
176
|
|
(1
|
)
|
(1) Represents the average daily throughput volume in our crude oil
pipelines operations. The volumes in our crude oil storage operations
have no effect on operations as we receive a set fee per month that does
not fluctuate with the volume of crude oil stored.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151109006739/en/ Copyright Business Wire 2015
Source: Business Wire
(November 9, 2015 - 4:30 PM EST)
News by QuoteMedia
www.quotemedia.com
|
