Cypress Energy Partners, L.P. Announces Third Quarter 2017 Results TULSA, Okla.
Cypress Energy Partners, L.P. (NYSE:CELP)
today reported:
-
Revenues of $77.7 million for the third quarter, an increase of 4.2%
from the second quarter of 2017
-
Gross margin of $9.4 million for the third quarter, an increase of
9.1% from the second quarter of 2017
-
$19.2 million of cash as of September 30, 2017
-
Coverage ratio of 1.37x, an increase of 63.1% from the second quarter
of 2017
-
Cash distribution of $0.21 per unit, consistent with the last two
quarters
Peter C. Boylan III, CELP’s Chairman and Chief Executive Officer,
stated, “We are encouraged by the sequential improvement in third
quarter revenues and margins. We continue to focus on potential
acquisitions and growing and diversifying our customer base. During the
quarter, we added 18 new customers across our three business segments.
Average U.S. pipeline inspection and integrity inspector headcounts
continue to improve compared to prior quarters and our higher margin NDE
business achieved a new record during the quarter. Our Brown hydrostatic
testing business unit maintained its backlog from the second quarter to
the third quarter and reflected a strong utilization rate during the
quarter. The pipeline inspection and integrity business has growing
opportunities over the next several years as many projects previously
delayed have been recently approved by various regulators. Our water
volumes improved approximately 5% over the prior quarter, and 6% over
the prior year as activity has slowly picked up in North Dakota.
Additionally, we continued our development of three produced water
pipelines serving new multi-well pads in North Dakota for a public E&P
customer that will connect to one of our existing SWD’s in Williams
County. Unlike the substantial majority of MLPs, all of our business
units continue to require very modest levels of maintenance capital
expenditures and have the ability to grow organically as the industry
fundamentals improve.”
Mr. Boylan continued, “Our sponsor, Cypress Energy Holdings, LLC
(“CEH”), and its affiliates who control our general partner, remain
aligned with our common unitholders with an approximate 64% ownership
interest in CELP. Because of this ownership alignment, CEH has again
provided financial support to CELP with temporary relief through expense
reimbursements of $1.0 million this quarter. As with the Omnibus
Agreement relief provided in prior quarters, CEH did not require any
consideration from CELP for this additional support.
“We continue to evaluate several interesting acquisition opportunities,
including our continued due diligence of one sizeable opportunity
currently under a letter of intent with exclusivity. Areas of focus
continue to be traditional midstream opportunities and expansion in our
existing lines of business. CEH remains willing to deploy capital to
assist CELP in acquiring attractive assets that may be larger than what
CELP can currently acquire independently, with plans to offer those
assets to CELP as drop-down opportunities.
“We continue to believe the long term increasing demand for inspection
and integrity services and water solutions remains strong despite the
relatively slow pace of the recovery from the multi-year downturn.”
Third Quarter:
-
Revenue of $77.7 million for the three months ended September 30,
2017, compared with $74.6 million for the three months ended June 30,
2017, representing a 4.2% increase. For the same period a year ago,
revenue was $81.8 million.
-
Gross margin of $9.4 million or 12.1% for the three months ended
September 30, 2017, compared to $8.6 million or 11.5% for the three
months ended June 30, 2017, representing a 9.1% increase. Gross margin
was $9.9 million or 12.1% in the same period a year ago.
-
Net income of $0.6 million for the three months ended September 30,
2017 which was similar to the $0.5 million for the three months ended
June 30, 2017. Net income was $2.0 million for the same period of 2016.
-
Net income attributable to CELP limited partners of $1.6 million for
the three months ended September 30, 2017, compared to $1.5 million
for the three months ended June 30, 2017, representing a 6.5%
increase. Net income attributable to CELP limited partners was $3.3
million for the same period of 2016 due in part to greater sponsor
support during the downturn.
-
Adjusted EBITDA of $4.5 million for the three months ended September
30, 2017 (including non-controlling interests and amounts attributable
to our general partner), compared to $4.8 million for the three months
ended June 30, 2017 (including non-controlling interests and amounts
attributable to our general partner), representing a decrease of 7.2%.
Adjusted EBITDA was $6.6 million for the same period of 2016
(including non-controlling interests and amounts attributable to our
general partner) due in part to greater sponsor support during the
downturn.
-
Adjusted EBITDA attributable to limited partners of $5.3 million for
the three months ended September 30, 2017, compared to $4.8 million
for the three months ended June 30, 2017 representing an increase of
10.3%. Adjusted EBITDA attributable to limited partners was $6.8
million for the same period of 2016 due in part to greater sponsor
support during the downturn.
-
Distributable Cash Flow available to limited partners of $3.4 million
for the three months ended September 30, 2017, compared to $2.1
million for the three months ended June 30, 2017 representing an
increase of 62.5%. Distributable Cash Flow was $5.1 million for the
same period of 2016 due in part to greater sponsor support during the
downturn.
-
A coverage ratio of 1.37x in the third quarter of 2017, compared to a
coverage ratio of 0.84x in the second quarter of 2017 and a coverage
ratio of 1.06x in the third quarter of 2016.
-
A leverage ratio of approximately 3.77x compared to a 4.0x covenant
limit and an interest coverage ratio of 3.08x compared to a 3.0x
covenant requirement at September 30, 2017 pursuant to the terms of
our credit facilities.
Year-To-Date:
-
Revenue of $217.0 million for the nine months ended September 30,
2017, down 4.7% from the same period in the prior year.
-
Net loss of $3.9 million for the nine months ended September 30, 2017
(including impairment charges of $3.6 million), compared to $11.0
million for the same period in the prior year (including impairment
charges of $10.5 million).
-
Net income attributable to limited partners of $0.2 million for the
nine months ended September 30, 2017 (including impairment charges of
$2.8 million), compared to a net loss of $0.7 million for the same
period in the prior year (including impairment charges of $6.4
million).
-
Adjusted EBITDA of $12.1 million for the nine months ended September
30, 2017 (including non-controlling interests and amounts attributable
to our general partner), compared to $12.9 million for the same period
in the prior year, down 5.8%.
-
Adjusted EBITDA attributable to limited partners of $13.2 million for
the nine months ended September 30, 2017, compared to $15.5 million
for the same period in the prior year, down 14.9%.
-
Distributable Cash Flow attributable to limited partners of $6.8
million for the nine months ended September 30, 2017, down 34.8% from
the same period in the prior year.
Highlights Include:
-
We averaged 1,211 inspectors per week for the third quarter of 2017,
an increase of 2.1% compared to 1,186 in the second quarter of 2017
even though Hurricane Harvey delayed some projects in both our
inspection and integrity divisions. For the same period a year ago, we
averaged 1,231 inspectors. Our focus on maintenance and integrity work
and non-destructive examination (“NDE”) continues to benefit our gross
margins in comparison with our standard inspection work.
-
During the third quarter, we started a new mechanical integrity
business unit in our inspection and integrity division and it is off
to a great start, having won some excellent mandates from large
publicly traded energy companies. The additional overhead is reflected
in our margins and SG&A.
-
We disposed 3.1 million barrels of saltwater, an increase of 4.6% at
an average revenue per barrel of $0.68 for the third quarter of 2017
compared with the disposal of 3.0 million barrels of saltwater at an
average revenue per barrel of $0.68 for the second quarter of 2017.
This also represented a 5.6% increase over the 2.9 million barrels of
saltwater we disposed at an average revenue per barrel of $0.67 for
the same period of 2016.
-
Maintenance capital expenditures for the three months ended September
30, 2017 were $0.2 million, compared to $14 thousand in the second
quarter of 2017 and $56 thousand in the same period of 2016.
-
Our expansion capital expenditures during the first nine months of
2017 totaled $0.8 million and were primarily related to growth
opportunities in Pipeline Integrity Services to purchase new NDE
technology, a new line of business started to support our higher
margin pipeline integrity services, and to expand Water &
Environmental Services.
Looking Forward:
-
Our third quarter pipeline inspection headcounts increased slightly
over our second quarter headcounts, despite the loss of some work from
a significant Canadian customer previously reported in the first
quarter of 2017.
-
We continue to pursue new projects as they are announced, new
customers, and renew existing contracts.
-
Our Integrity Services business (hydrostatic testing) third quarter
results improved over the prior quarter with an increase in average
number of field personnel utilized of 16.7% and a slight increase in
average revenue per field personnel per week. We have also improved
our backlog going into the fourth quarter of 2017 and first quarter of
2018.
-
During the third quarter, approximately 90% of total water volumes
came from produced water, and piped water represented approximately
45% of total water volumes. As commodity prices continue to improve
and drilling activity increases, we expect to have operating leverage
with our cost structure and minimal maintenance capital expenditure
requirements as volumes increase. Private equity investors have been
very active acquiring acreage and production in the Bakken this year
that will likely lead to increased new drilling activity. Our latest
research shows that there are an estimated 500 drilled and uncompleted
wells (“DUCs”) within a 15-mile radius of our facilities, 300 in North
Dakota and 200 in the Permian. As prices continue to improve, we
expect to benefit from the completion of these DUCs and other newly
completed wells from both existing Bakken operators and many new
private equity backed operators.
-
Our SWD facilities have substantial unused capacity to support growth
with current utilization of approximately 25%. We anticipate
completing the rebuild of our Delaware basin SWD facility in near
Orla, Texas in December that was struck by lightning. We continue to
work with our insurance carrier on the lightning strike property loss
settlement on one of our facilities in the Bakken that currently
remains out of service.
-
We continue to evaluate several acquisition opportunities in
traditional midstream lines of business and our existing lines of
business including some very large transformational opportunities that
would need to initially be acquired by CEH with the expectation that
they would be offered to CELP in the future as a drop-down opportunity.
-
LIBOR interest rates have risen over the last quarter by approximately
19 basis points and by almost 71 basis points compared to this time
last year. This has increased our interest expense and negatively
impacted our distributable cash flow and coverage ratios.
CELP will file its quarterly report on Form 10-Q for the period ended
September 30, 2017 with the Securities and Exchange Commission later
today. CELP will also post a copy of the Form 10-Q on its website at www.cypressenergy.com.
CELP will host an earnings call on Tuesday, November 14th,
2017, at 11:00 am EST (10:00 am CST) to discuss its third quarter 2017
financial results. Analysts, investors, and other interested parties may
access the conference call by dialing Toll-Free (US & Canada): (888)
437-3179 or International Dial-In (Toll): (404) 267-0369. An archived
audio replay of the call will be available on the investor section of
our website at www.cypressenergy.com
beginning at 11:00 am EST (10:00 am CST) on November 16th,
2017.
Non-GAAP Measures:
CELP defines Adjusted EBITDA as net income (loss), plus interest
expense, depreciation, amortization and accretion expenses, income tax
expenses, impairments, non-cash allocated expenses, and equity based
compensation, plus or minus other extraordinary or non-recurring items.
CELP defines Adjusted EBITDA attributable to limited partners as net
income (loss) attributable to limited partners, plus interest expense
attributable to limited partners, depreciation, amortization and
accretion attributable to limited partners, impairments attributable to
limited partners, income tax expense attributable to limited partners,
and equity based compensation attributable to limited partners, plus or
minus other extraordinary or non-recurring items attributable to limited
partners. CELP defines Distributable Cash Flow as Adjusted EBITDA
attributable to limited partners excluding, cash interest paid, cash
income taxes paid, maintenance capital expenditures and other
extraordinary or non-recurring items. These 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
mid-stream 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; the
viability of acquisitions and other capital expenditure projects; and
the returns on investment of various investment opportunities. The GAAP
measures most directly comparable to Adjusted EBITDA, Adjusted EBITDA
attributable to limited partners, and Distributable Cash Flow are net
income (loss) and cash flow from operating activities, respectively.
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. Adjusted EBITDA, Adjusted
EBITDA attributable to limited partners and Distributable Cash Flow
should not be considered an alternative to net income, income before
income taxes, net income attributable to limited partners, cash flows
from operating activities, or any other measure of financial performance
calculated in accordance with GAAP as those items are used to measure
operating performance, liquidity, or the ability to service debt
obligations. CELP believes that the presentation of Adjusted EBITDA,
Adjusted EBITDA attributable to limited partners and Distributable Cash
Flow will provide useful information to investors in assessing our
financial condition and results of operations. CELP uses Adjusted
EBITDA, Adjusted EBITDA attributable to limited partners and
Distributable Cash Flow as a supplemental financial measure to both
manage our business and assess the cash flows generated by our assets
(prior to the establishment of any retained cash reserves by the general
partner) to fund the cash distributions we expect to pay to unitholders,
to evaluate our success in providing a cash return on investment, and
whether or not the Partnership is generating cash flow at a level that
can sustain or support an increase in its quarterly distribution rates
and to determine the yield of our units, which is a quantitative
standard used throughout the investment community with respect to
publicly-traded partnerships, as the value of a unit is generally
determined by a unit’s yield (which in turn is based on the amount of
cash distributions the entity pays to a unitholder). Because adjusted
EBITDA, adjusted EBITDA attributable to limited partners and
Distributable Cash Flow may be defined differently by other companies in
our industry, our definitions of Adjusted EBITDA, Adjusted EBITDA
attributable to limited partners and Distributable Cash Flow may not be
comparable to similarly titled measures of other companies, thereby
diminishing their utility. Reconciliations of (i) Adjusted EBITDA to net
income, (ii) Adjusted EBITDA attributable to limited partners and
Distributable Cash Flow to net income attributable to limited partners
and (iii) Adjusted EBITDA to net cash provided by operating activities
are provided below.
This press release includes “forward-looking statements.” All
statements, other than statements of historical facts included or
incorporated herein, may constitute forward-looking statements. Actual
results could vary significantly from those expressed or implied in such
statements, and are subject to a number of risks and uncertainties.
While CELP believes its expectations, as reflected in the
forward-looking statements, are reasonable, CELP can give no assurance
that such expectations will prove to be correct. The forward-looking
statements involve risks and uncertainties that affect operations,
financial performance, and other factors as discussed in filings with
the Securities and Exchange Commission. Other factors that could impact
any forward-looking statements are those risks described in CELP’s
Annual Report filed on Form 10-K and other public filings. You are urged
to carefully review and consider the cautionary statements and other
disclosures made in those filings, specifically those under the heading
“Risk Factors.” CELP undertakes no obligation to publicly update or
revise any forward-looking statements except as required by law.
About Cypress Energy Partners, L.P.
Cypress Energy Partners, L.P. is a master limited partnership that
provides essential mid-stream services, including pipeline inspection,
integrity, and hydrostatic testing services to various energy companies
and their vendors throughout the U.S. and Canada. Cypress also provides
saltwater disposal environmental services to upstream energy companies,
and their vendors in North Dakota in the Bakken region of the Williston
Basin, and West Texas in the Permian Basin. In all of these business
segments, Cypress works closely with its customers to help them comply
with increasingly complex and strict environmental and safety rules and
regulations, and reduce their operating costs. Cypress is headquartered
in Tulsa, Oklahoma.
|
|
CYPRESS ENERGY PARTNERS, L.P.
|
Unaudited Condensed Consolidated Balance Sheets
|
As of September 30, 2017 and December 31, 2016
|
(in thousands, except unit data)
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
19,238
|
|
|
|
$
|
26,693
|
|
Trade accounts receivable, net
|
|
|
|
49,945
|
|
|
|
|
38,482
|
|
Prepaid expenses and other
|
|
|
|
1,610
|
|
|
|
|
1,042
|
|
Total current assets
|
|
|
|
70,793
|
|
|
|
|
66,217
|
|
Property and equipment:
|
|
|
|
|
|
|
Property and equipment, at cost
|
|
|
|
20,355
|
|
|
|
|
22,459
|
|
Less: Accumulated depreciation
|
|
|
|
8,634
|
|
|
|
|
7,840
|
|
Total property and equipment, net
|
|
|
|
11,721
|
|
|
|
|
14,619
|
|
Intangible assets, net
|
|
|
|
26,180
|
|
|
|
|
29,624
|
|
Goodwill
|
|
|
|
55,430
|
|
|
|
|
56,903
|
|
Other assets
|
|
|
|
188
|
|
|
|
|
149
|
|
Total assets
|
|
|
$
|
164,312
|
|
|
|
$
|
167,512
|
|
|
|
|
|
|
|
|
LIABILITIES AND OWNERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
2,171
|
|
|
|
$
|
1,690
|
|
Accounts payable - affiliates
|
|
|
|
3,568
|
|
|
|
|
1,638
|
|
Accrued payroll and other
|
|
|
|
12,242
|
|
|
|
|
7,585
|
|
Income taxes payable
|
|
|
|
748
|
|
|
|
|
1,011
|
|
Total current liabilities
|
|
|
|
18,729
|
|
|
|
|
11,924
|
|
Long-term debt
|
|
|
|
136,142
|
|
|
|
|
135,699
|
|
Deferred tax liabilities
|
|
|
|
-
|
|
|
|
|
362
|
|
Asset retirement obligations
|
|
|
|
161
|
|
|
|
|
139
|
|
Total liabilities
|
|
|
|
155,032
|
|
|
|
|
148,124
|
|
|
|
|
|
|
|
|
Owners' equity:
|
|
|
|
|
|
|
Partners’ capital:
|
|
|
|
|
|
|
Common units (11,889,958 and 5,945,348 units outstanding at
September 30, 2017 and December 31, 2016, respectively)
|
|
|
|
34,133
|
|
|
|
|
(7,722
|
)
|
Subordinated units (5,913,000 units outstanding at December 31, 2016)
|
|
|
|
-
|
|
|
|
|
50,474
|
|
General partner
|
|
|
|
(25,876
|
)
|
|
|
|
(25,876
|
)
|
Accumulated other comprehensive loss
|
|
|
|
(2,725
|
)
|
|
|
|
(2,538
|
)
|
Total partners' capital
|
|
|
|
5,532
|
|
|
|
|
14,338
|
|
Noncontrolling interests
|
|
|
|
3,748
|
|
|
|
|
5,050
|
|
Total owners' equity
|
|
|
|
9,280
|
|
|
|
|
19,388
|
|
Total liabilities and owners' equity
|
|
|
$
|
164,312
|
|
|
|
$
|
167,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CYPRESS ENERGY PARTNERS, L.P.
|
Unaudited Condensed Consolidated Statements of Operations
|
For the Three and Nine Months Ended September 30, 2017 and 2016
|
(in thousands, except unit and per unit data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
77,682
|
|
|
|
$
|
81,806
|
|
|
|
|
$
|
216,971
|
|
|
|
$
|
227,591
|
|
Costs of services
|
|
|
|
68,292
|
|
|
|
|
71,880
|
|
|
|
|
|
192,643
|
|
|
|
|
202,540
|
|
Gross margin
|
|
|
|
9,390
|
|
|
|
|
9,926
|
|
|
|
|
|
24,328
|
|
|
|
|
25,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs, expenses and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
|
5,574
|
|
|
|
|
5,056
|
|
|
|
|
|
16,013
|
|
|
|
|
16,805
|
|
Depreciation, amortization and accretion
|
|
|
|
1,184
|
|
|
|
|
1,214
|
|
|
|
|
|
3,561
|
|
|
|
|
3,685
|
|
Impairments
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
3,598
|
|
|
|
|
10,530
|
|
Losses on asset disposals, net
|
|
|
|
208
|
|
|
|
|
-
|
|
|
|
|
|
95
|
|
|
|
|
-
|
|
Operating income (loss)
|
|
|
|
2,424
|
|
|
|
|
3,656
|
|
|
|
|
|
1,061
|
|
|
|
|
(5,969
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
(1,907
|
)
|
|
|
|
(1,641
|
)
|
|
|
|
|
(5,411
|
)
|
|
|
|
(4,878
|
)
|
Foreign currency gains
|
|
|
|
557
|
|
|
|
|
-
|
|
|
|
|
|
824
|
|
|
|
|
-
|
|
Other, net
|
|
|
|
17
|
|
|
|
|
210
|
|
|
|
|
|
122
|
|
|
|
|
257
|
|
Net income (loss) before income tax expense
|
|
|
|
1,091
|
|
|
|
|
2,225
|
|
|
|
|
|
(3,404
|
)
|
|
|
|
(10,590
|
)
|
Income tax expense
|
|
|
|
529
|
|
|
|
|
227
|
|
|
|
|
|
458
|
|
|
|
|
389
|
|
Net income (loss)
|
|
|
|
562
|
|
|
|
|
1,998
|
|
|
|
|
|
(3,862
|
)
|
|
|
|
(10,979
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) attributable to noncontrolling interests
|
|
|
|
8
|
|
|
|
|
81
|
|
|
|
|
|
(1,290
|
)
|
|
|
|
(4,898
|
)
|
Net income (loss) attributable to partners / controlling interests
|
|
|
|
554
|
|
|
|
|
1,917
|
|
|
|
|
|
(2,572
|
)
|
|
|
|
(6,081
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to general partner
|
|
|
|
(1,000
|
)
|
|
|
|
(1,431
|
)
|
|
|
|
|
(2,750
|
)
|
|
|
|
(5,366
|
)
|
Net income (loss) attributable to limited partners
|
|
|
$
|
1,554
|
|
|
|
$
|
3,348
|
|
|
|
|
$
|
178
|
|
|
|
$
|
(715
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to limited partners allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders
|
|
|
$
|
1,554
|
|
|
|
$
|
1,676
|
|
|
|
|
$
|
178
|
|
|
|
$
|
(358
|
)
|
Subordinated unitholders
|
|
|
|
-
|
|
|
|
|
1,672
|
|
|
|
|
|
-
|
|
|
|
|
(357
|
)
|
|
|
|
$
|
1,554
|
|
|
|
$
|
3,348
|
|
|
|
|
$
|
178
|
|
|
|
$
|
(715
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common limited partner unit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.13
|
|
|
|
$
|
0.28
|
|
|
|
|
$
|
0.02
|
|
|
|
$
|
(0.06
|
)
|
Diluted
|
|
|
$
|
0.13
|
|
|
|
$
|
0.27
|
|
|
|
|
$
|
0.02
|
|
|
|
$
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per subordinated limited partner unit - basic and
diluted
|
|
|
$
|
-
|
|
|
|
$
|
0.28
|
|
|
|
|
$
|
-
|
|
|
|
$
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
11,884,196
|
|
|
|
|
5,939,158
|
|
|
|
|
|
10,902,838
|
|
|
|
|
5,930,718
|
|
Diluted
|
|
|
|
11,994,881
|
|
|
|
|
6,158,961
|
|
|
|
|
|
11,111,454
|
|
|
|
|
5,930,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average subordinated units outstanding - basic and diluted
|
|
|
|
-
|
|
|
|
|
5,913,000
|
|
|
|
|
|
974,670
|
|
|
|
|
5,913,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended September 30,
|
|
|
|
Nine Months ended September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
562
|
|
|
$
|
1,998
|
|
|
|
$
|
(3,862
|
)
|
|
|
$
|
(10,979
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
1,907
|
|
|
|
1,641
|
|
|
|
|
5,411
|
|
|
|
|
4,878
|
|
Depreciation, amortization and accretion
|
|
|
|
1,465
|
|
|
|
1,447
|
|
|
|
|
4,378
|
|
|
|
|
4,354
|
|
Impairments
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,598
|
|
|
|
|
10,530
|
|
Income tax expense
|
|
|
|
529
|
|
|
|
227
|
|
|
|
|
458
|
|
|
|
|
389
|
|
Non-cash allocated expenses
|
|
|
|
-
|
|
|
|
931
|
|
|
|
|
1,750
|
|
|
|
|
2,866
|
|
Equity based compensation
|
|
|
|
371
|
|
|
|
322
|
|
|
|
|
1,137
|
|
|
|
|
829
|
|
Losses on asset disposals, net
|
|
|
|
208
|
|
|
|
-
|
|
|
|
|
77
|
|
|
|
|
-
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency gains
|
|
|
|
557
|
|
|
|
-
|
|
|
|
|
824
|
|
|
|
|
-
|
|
Adjusted EBITDA
|
|
|
$
|
4,485
|
|
|
$
|
6,566
|
|
|
|
$
|
12,123
|
|
|
|
$
|
12,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss Attributable to Limited Partners to
Adjusted EBITDA Attributable to Limited Partners and Distributable
Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended September 30,
|
|
|
|
Nine Months ended September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to limited partners
|
|
|
$
|
1,554
|
|
|
$
|
3,348
|
|
|
|
$
|
178
|
|
|
|
$
|
(715
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense attributable to limited partners
|
|
|
|
1,907
|
|
|
|
1,578
|
|
|
|
|
5,411
|
|
|
|
|
4,690
|
|
Depreciation, amortization and accretion attributable to limited
partners
|
|
|
|
1,322
|
|
|
|
1,306
|
|
|
|
|
3,952
|
|
|
|
|
3,921
|
|
Impairments attributable to limited partners
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
2,823
|
|
|
|
|
6,409
|
|
Income tax expense attributable to limited partners
|
|
|
|
517
|
|
|
|
218
|
|
|
|
|
442
|
|
|
|
|
370
|
|
Equity based compensation attributable to limited partners
|
|
|
|
371
|
|
|
|
322
|
|
|
|
|
1,137
|
|
|
|
|
829
|
|
Losses on asset disposals attributable to limited partners, net
|
|
|
|
208
|
|
|
|
-
|
|
|
|
|
77
|
|
|
|
|
-
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency gains attributable to limited partners
|
|
|
|
557
|
|
|
|
-
|
|
|
|
|
824
|
|
|
|
|
-
|
|
Adjusted EBITDA attributable to limited partners
|
|
|
|
5,322
|
|
|
|
6,772
|
|
|
|
|
13,196
|
|
|
|
|
15,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash interest paid, cash taxed paid and maintenance capital
expenditures attributable to limited partners
|
|
|
|
1,910
|
|
|
|
1,671
|
|
|
|
|
6,380
|
|
|
|
|
5,058
|
|
Distributable cash flow
|
|
|
$
|
3,412
|
|
|
$
|
5,101
|
|
|
|
$
|
6,816
|
|
|
|
$
|
10,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash Flows Provided by Operating Activities to
Adjusted EBITDA
|
|
|
|
|
Nine Months ended September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
Cash flows provided by operating activities
|
|
|
$
|
263
|
|
|
|
$
|
17,659
|
|
Changes in trade accounts receivable, net
|
|
|
|
11,583
|
|
|
|
|
(4,999
|
)
|
Changes in prepaid expenses and other
|
|
|
|
765
|
|
|
|
|
(1,053
|
)
|
Changes in accounts payable and accrued liabilities
|
|
|
|
(6,552
|
)
|
|
|
|
(3,802
|
)
|
Changes in income taxes payable
|
|
|
|
271
|
|
|
|
|
84
|
|
Interest expense (excluding non-cash interest)
|
|
|
|
4,968
|
|
|
|
|
4,452
|
|
Income tax expense (excluding deferred tax benefit)
|
|
|
|
819
|
|
|
|
|
428
|
|
Other
|
|
|
|
6
|
|
|
|
|
98
|
|
Adjusted EBITDA
|
|
|
$
|
12,123
|
|
|
|
$
|
12,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
Nine Months
|
|
|
|
Ended September 30,
|
|
|
|
Ended September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total barrels of saltwater disposed (in thousands)
|
|
|
|
3,102
|
|
|
|
|
2,937
|
|
|
|
|
|
8,841
|
|
|
|
|
9,917
|
|
Average revenue per barrel
|
|
|
$
|
0.68
|
|
|
|
$
|
0.67
|
|
|
|
|
$
|
0.68
|
|
|
|
$
|
0.67
|
|
Water and environmental services gross margins
|
|
|
|
60.4
|
%
|
|
|
|
62.2
|
%
|
|
|
|
|
61.2
|
%
|
|
|
|
53.5
|
%
|
Average number of inspectors
|
|
|
|
1,211
|
|
|
|
|
1,231
|
|
|
|
|
|
1,160
|
|
|
|
|
1,165
|
|
Average revenue per inspector per week
|
|
|
$
|
4,570
|
|
|
|
$
|
4,655
|
|
|
|
|
$
|
4,532
|
|
|
|
$
|
4,597
|
|
Pipeline inspection services gross margins
|
|
|
|
10.2
|
%
|
|
|
|
10.3
|
%
|
|
|
|
|
9.6
|
%
|
|
|
|
9.5
|
%
|
Average number of integrity field personnel
|
|
|
|
21
|
|
|
|
|
25
|
|
|
|
|
|
18
|
|
|
|
|
24
|
|
Average revenue per field personnel per week
|
|
|
$
|
10,268
|
|
|
|
$
|
13,772
|
|
|
|
|
$
|
8,443
|
|
|
|
$
|
12,059
|
|
Integrity services gross margins
|
|
|
|
24.8
|
%
|
|
|
|
21.4
|
%
|
|
|
|
|
15.6
|
%
|
|
|
|
14.7
|
%
|
Maintenance capital expenditures (in thousands)
|
|
|
$
|
224
|
|
|
|
$
|
56
|
|
|
|
|
$
|
312
|
|
|
|
$
|
206
|
|
Expansion capital expenditures (in thousands)
|
|
|
$
|
511
|
|
|
|
$
|
132
|
|
|
|
|
$
|
802
|
|
|
|
$
|
528
|
|
Distributions (in thousands)
|
|
|
$
|
2,497
|
|
|
|
$
|
4,819
|
|
|
|
|
$
|
7,487
|
|
|
|
$
|
14,448
|
|
Coverage ratio
|
|
|
1.37
|
x
|
|
|
1.06
|
x
|
|
|
|
0.91
|
x
|
|
|
0.72
|
x
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171113006472/en/ Copyright Business Wire 2017
Source: Business Wire
(November 13, 2017 - 7:56 PM EST)
News by QuoteMedia
www.quotemedia.com
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