Martin Midstream Partners Reports 2018 Second Quarter Financial Results
Agreement to Divest West Texas LPG Pipeline Interest
Improved Pro-Forma Total Leverage to 4.36 times
Quarterly Distribution Coverage Ratio In-Line with Guidance
KILGORE, Texas, July 25, 2018 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") announced today its financial results for the quarter ended June 30, 2018.
Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, "I am pleased to announce that the Partnership has entered into an agreement with ONEOK, Inc. to sell our 20 percent non-operating partnership interests in the West Texas LPG Pipeline Limited Partnership for $195.0 million. We expect the transaction to close on July 31, 2018 and will use net proceeds of approximately $193.7 million to reduce outstanding borrowings under the Partnership’s revolving credit facility. Accordingly, our pro-forma leverage is 4.36 times compared to actual leverage of 5.46 times at June 30, 2018. In addition, the Partnership’s forecasted growth capital expenditures will be reduced by approximately $24.2 million for the remainder of 2018.
"Addressing our second quarter 2018 performance, the Partnership generated a distribution coverage ratio of 0.56 times. While cash flow trailed guidance by approximately $5.7 million, our coverage ratio was substantially in line with our internal forecast based on lower maintenance capital expenditures. Our second quarter results include a one-time negative inventory adjustment of $3.9 million in the fertilizer division of our Sulfur Services segment. The adjustment is a result of utilizing newly implemented three-dimensional stockpile measurement technology to determine dry bulk inventory. Partially offsetting the inventory adjustment was better than forecasted Marine Transportation performance driven by improving day rates and fleet utilization.
"Based on lower project costs and timing differences we are reducing our full year maintenance capital expenditure guidance by $5.0 million to $24.3 million. After giving effect to the transaction, our six month pro-forma distribution coverage ratio is 1.01 times and our full year forecasted ratio remains at 1.00 times.
"Management continues to be focused on improving the leverage profile of the Partnership. By executing the pipeline divestiture we achieve our goal of less than 4.50 times."
The Partnership had net loss for the second quarter 2018 of $7.2 million, a loss of $0.18 per limited partner unit. The Partnership had net income for the second quarter 2017 of $1.0 million, or $0.03 per limited partner unit. The Partnership's adjusted EBITDA for the second quarter 2018 was $29.4 million compared to adjusted EBITDA from for the second quarter 2017 of $33.0 million.
The Partnership had net income for the six months ended June 30, 2018 of $5.6 million, or $0.14 per limited partner unit. The Partnership had net income for the six months ended June 30, 2017 of $14.6 million, or $0.38 per limited partner unit. The Partnership's adjusted EBITDA for the six months ended June 30, 2018 was $74.2 million compared to adjusted EBITDA for the six months ended June 30, 2017 of $79.8 million.
The Partnership's distributable cash flow for the second quarter 2018 was $11.0 million compared to distributable cash flow for the second quarter 2017 of $19.6 million.
The Partnership's distributable cash flow for the six months ended June 30, 2018 was $37.6 million compared to distributable cash flow for the six months ended June 30, 2017 of $49.9 million.
Revenues for the second quarter 2018 were $216.6 million compared to the second quarter 2017 of $193.9 million. Revenues for the six months ended June 30, 2018 were $500.8 million compared to the six months ended June 30, 2017 of $447.2 million.
Distributable cash flow, EBITDA and adjusted EBITDA are non-GAAP financial measures which are explained in greater detail below under the heading "Use of Non-GAAP Financial Information." The Partnership has also included below a table entitled "Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.
Included with this press release are the Partnership's consolidated and condensed financial statements as of and for the three and six months ended June 30, 2018 and certain prior periods. These financial statements should be read in conjunction with the information contained in the Partnership's Quarterly Report on Form 10-Q, to be filed with the Securities and Exchange Commission on July 25, 2018.
A conference call to review the second quarter results will be held on Thursday, July 26, 2018 at 8:00 a.m. Central Time. The live conference call can be accessed by calling (877) 878-2695. For a limited time, an audio replay of the conference call will be available by calling (855) 859-2056. The conference ID is 3192908. The replay will also be archived on Martin Midstream Partners’ website at www.martinmidstream.com
About Martin Midstream Partners
The Partnership is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership's primary business segments include: (1) natural gas services, including liquids transportation and distribution services and natural gas storage; (2) terminalling, storage and packaging services for petroleum products and by-products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) marine transportation services for petroleum products and by-products.
Forward-Looking Statements
Statements about the Partnership's outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the Partnership's control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise except where required to do so by law.
Use of Non-GAAP Financial Information
The Partnership's management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") to analyze its performance. These include: (1) net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), (2) adjusted EBITDA and (3) distributable cash flow. The Partnership's management views these measures as important performance measures of core profitability for its operations and the ability to generate and distribute cash flow, and as key components of its internal financial reporting. The Partnership's management believes investors benefit from having access to the same financial measures that management uses.
EBITDA and Adjusted EBITDA. Certain items excluded from EBITDA and adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets. The Partnership has included information concerning EBITDA and adjusted EBITDA because it provides investors and management with additional information to better understand the following: financial performance of the Partnership's assets without regard to financing methods, capital structure or historical cost basis; the Partnership's operating performance and return on capital as compared to those of other similarly situated entities; and the viability of acquisitions and capital expenditure projects. The Partnership's method of computing adjusted EBITDA may not be the same method used to compute similar measures reported by other entities. The economic substance behind the Partnership's use of adjusted EBITDA is to measure the ability of the Partnership's assets to generate cash sufficient to pay interest costs, support its indebtedness and make distributions to its unitholders.
Distributable Cash Flow. Distributable cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by the Partnership to the cash distributions it expects to pay unitholders. Distributable cash flow is also an important financial measure for the Partnership's unitholders since it serves as an indicator of the Partnership's success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flow at a level that can sustain or support an increase in its quarterly distribution rates. Distributable cash flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.
EBITDA, adjusted EBITDA and distributable cash flow should not be considered alternatives to, or more meaningful than, net income, cash flows from operating activities, or any other measure presented in accordance with GAAP. The Partnership's method of computing these measures may not be the same method used to compute similar measures reported by other entities.
Additional information concerning the Partnership is available on the Partnership's website at www.martinmidstream.com or by contacting:
Sharon Taylor - Head of Investor Relations (877) 256-6644
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED BALANCE SHEETS (Dollars in thousands)
June 30, 2018
December 31, 2017
(Unaudited)
(Audited)
Assets
Cash
$
610
$
27
Accounts and other receivables, less allowance for doubtful accounts of $405 and $314, respectively
60,884
107,242
Product exchange receivables
174
29
Inventories (Note 6)
113,100
97,252
Due from affiliates
21,031
23,668
Other current assets
5,368
4,866
Assets held for sale (Note 4)
8,158
9,579
Total current assets
209,325
242,663
Property, plant and equipment, at cost
1,273,392
1,253,065
Accumulated depreciation
(450,564
)
(421,137
)
Property, plant and equipment, net
822,828
831,928
Goodwill
17,296
17,296
Investment in WTLPG (Note 7)
141,114
128,810
Other assets, net (Note 9)
28,202
32,801
Total assets
$
1,218,765
$
1,253,498
Liabilities and Partners’ Capital
Trade and other accounts payable
$
72,945
$
92,567
Product exchange payables
13,015
11,751
Due to affiliates
1,271
3,168
Income taxes payable
400
510
Fair value of derivatives (Note 10)
572
72
Other accrued liabilities (Note 9)
23,093
26,340
Total current liabilities
111,296
134,408
Long-term debt, net (Note 8)
831,928
812,632
Other long-term obligations
10,842
8,217
Total liabilities
954,066
955,257
Commitments and contingencies (Note 15)
Partners’ capital (Note 11)
264,699
298,241
Total partners’ capital
264,699
298,241
Total liabilities and partners' capital
$
1,218,765
$
1,253,498
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on July 25, 2018.
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Dollars in thousands, except per unit amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2018
2017
2018
2017
Revenues:
Terminalling and storage *
$
24,090
$
24,695
$
48,154
$
49,353
Marine transportation *
12,739
12,433
24,193
25,254
Natural gas services*
13,804
14,838
29,160
29,503
Sulfur services
2,787
2,850
5,574
5,700
Product sales: *
Natural gas services
90,643
73,666
249,806
200,323
Sulfur services
35,684
32,027
70,584
71,554
Terminalling and storage
36,824
33,413
73,304
65,560
163,151
139,106
393,694
337,437
Total revenues
216,571
193,922
500,775
447,247
Costs and expenses:
Cost of products sold: (excluding depreciation and amortization)
Natural gas services *
87,642
70,198
230,599
178,377
Sulfur services *
28,739
21,207
52,635
45,690
Terminalling and storage *
33,206
29,897
66,166
58,026
149,587
121,302
349,400
282,093
Expenses:
Operating expenses *
31,510
32,552
62,964
65,926
Selling, general and administrative *
8,572
8,909
18,240
18,830
Depreciation and amortization
20,891
20,326
40,101
45,662
Total costs and expenses
210,560
183,089
470,705
412,511
Other operating income (loss)
(490
)
15
(492
)
(140
)
Operating income
5,521
10,848
29,578
34,596
Other income (expense):
Equity in earnings of WTLPG
1,131
853
2,726
1,758
Interest expense, net
(13,766
)
(11,219
)
(26,451
)
(22,139
)
Other, net
—
520
—
550
Total other expense
(12,635
)
(9,846
)
(23,725
)
(19,831
)
Net income (loss) before taxes
(7,114
)
1,002
5,853
14,765
Income tax expense
(132
)
(13
)
(281
)
(193
)
Net income (loss)
(7,246
)
989
5,572
14,572
Less general partner's interest in net (income) loss
145
(19
)
(111
)
(291
)
Less (income) loss allocable to unvested restricted units
6
(3
)
(2
)
(38
)
Limited partners' interest in net income (loss)
$
(7,095
)
$
967
$
5,459
$
14,243
Net income (loss) per unit attributable to limited partners - basic
$
(0.18
)
$
0.03
$
0.14
$
0.38
Net income (loss) per unit attributable to limited partners - diluted
$
(0.18
)
$
0.03
$
0.14
$
0.38
Weighted average limited partner units - basic
38,722
38,357
38,829
37,842
Weighted average limited partner units - diluted
38,722
38,414
38,834
37,895
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on July 25, 2018.
*Related Party Transactions Shown Below
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per unit amounts)
*Related Party Transactions Included Above
Three Months Ended
Six Months Ended
June 30,
June 30,
2018
2017
2018
2017
Revenues:*
Terminalling and storage
$
20,507
$
20,331
$
40,532
$
40,035
Marine transportation
4,105
4,187
7,718
8,512
Natural gas services
—
6
—
118
Product Sales
426
724
1,068
2,154
Costs and expenses:*
Cost of products sold: (excluding depreciation and amortization)
Natural gas services
3,099
2,909
7,417
11,803
Sulfur services
4,345
3,767
8,871
7,442
Terminalling and storage
8,009
4,119
14,567
9,186
Expenses:
Operating expenses
14,339
16,452
27,723
32,828
Selling, general and administrative
6,498
6,500
14,219
14,068
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on July 25, 2018.
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (Dollars in thousands)
Partners’ Capital
Common Limited
General Partner Amount
Units
Amount
Total
Balances - January 1, 2017
35,452,062
$
304,594
$
7,412
$
312,006
Net income
—
14,281
291
14,572
Issuance of common units, net
2,990,000
51,071
—
51,071
Issuance of restricted units
12,000
—
—
—
Forfeiture of restricted units
(1,750
)
—
—
—
General partner contribution
—
—
1,098
1,098
Cash distributions
—
(36,952
)
(754
)
(37,706
)
Unit-based compensation
—
405
—
405
Purchase of treasury units
(200
)
(4
)
—
(4
)
Excess purchase price over carrying value of acquired assets
—
(7,887
)
—
(7,887
)
Reimbursement of excess purchase price over carrying value of acquired assets
—
1,125
—
1,125
Balances - June 30, 2017
38,452,112
$
326,633
$
8,047
$
334,680
Balances - January 1, 2018
38,444,612
$
290,927
$
7,314
$
298,241
Net income
—
5,461
111
5,572
Issuance of common units, net of issuance related costs
—
(118
)
—
(118
)
Issuance of restricted units
633,425
—
—
—
Forfeiture of restricted units
(7,000
)
—
—
—
Cash distributions
—
(38,433
)
(784
)
(39,217
)
Unit-based compensation
—
520
—
520
Excess purchase price over carrying value of acquired assets
—
(26
)
—
(26
)
Purchase of treasury units
(18,800
)
(273
)
—
(273
)
Balances - June 30, 2018
39,052,237
$
258,058
$
6,641
$
264,699
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on July 25, 2018.
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands)
Six Months Ended
June 30,
2018
2017
Cash flows from operating activities:
Net income
$
5,572
$
14,572
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
40,101
45,662
Amortization of deferred debt issuance costs
1,689
1,445
Amortization of premium on notes payable
(153
)
(153
)
Loss on sale of property, plant and equipment
492
140
Equity in earnings of WTLPG
(2,726
)
(1,758
)
Derivative (income) loss
(2,069
)
2,392
Net cash received (paid) for commodity derivatives
2,569
(6,429
)
Unit-based compensation
520
405
Cash distributions from WTLPG
3,000
2,500
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables
46,592
29,522
Product exchange receivables
(145
)
(13
)
Inventories
(15,900
)
(19,065
)
Due from affiliates
2,632
(9,726
)
Other current assets
(699
)
(1,372
)
Trade and other accounts payable
(17,333
)
(4,067
)
Product exchange payables
1,264
246
Due to affiliates
(1,897
)
(5,774
)
Income taxes payable
(110
)
(468
)
Other accrued liabilities
(5,480
)
(2,761
)
Change in other non-current assets and liabilities
584
490
Net cash provided by operating activities
58,503
45,788
Cash flows from investing activities:
Payments for property, plant and equipment
(23,566
)
(19,756
)
Acquisitions
—
(19,533
)
Payments for plant turnaround costs
—
(1,591
)
Proceeds from sale of property, plant and equipment
98
1,597
Proceeds from repayment of Note receivable - affiliate
—
15,000
Contributions to WTLPG
(12,578
)
(145
)
Net cash used in investing activities
(36,046
)
(24,428
)
Cash flows from financing activities:
Payments of long-term debt
(199,000
)
(184,000
)
Proceeds from long-term debt
218,000
155,000
Proceeds from issuance of common units, net of issuance related costs
(118
)
51,071
General partner contribution
—
1,098
Purchase of treasury units
(273
)
(4
)
Payment of debt issuance costs
(1,240
)
(40
)
Excess purchase price over carrying value of acquired assets
(26
)
(7,887
)
Reimbursement of excess purchase price over carrying value of acquired assets
—
1,125
Cash distributions paid
(39,217
)
(37,706
)
Net cash used in financing activities
(21,874
)
(21,343
)
Net increase in cash
583
17
Cash at beginning of period
27
15
Cash at end of period
$
610
$
32
Non-cash additions to property, plant and equipment
$
1,811
$
3,666
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on July 25, 2018.
MARTIN MIDSTREAM PARTNERS L.P. SEGMENT OPERATING INCOME (Dollars and volumes in thousands, except BBL per day)
Terminalling and Storage Segment
Comparative Results of Operations for the Three Months Ended June 30, 2018 and 2017
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)
6,500
6,500
—
—
%
MARTIN MIDSTREAM PARTNERS L.P. SEGMENT OPERATING INCOME (Dollars and volumes in thousands, except BBL per day)
Natural Gas Services Segment
Comparative Results of Operations for the Three Months Ended June 30, 2018 and 2017
Three Months Ended June 30,
Percent
2018
2017
Variance
Change
(In thousands)
Revenues:
Services
$
13,804
$
14,838
$
(1,034
)
(7
)%
Products
90,643
73,666
16,977
23
%
Total revenues
104,447
88,504
15,943
18
%
Cost of products sold
88,394
71,003
17,391
24
%
Operating expenses
5,895
5,567
328
6
%
Selling, general and administrative expenses
1,759
2,115
(356
)
(17
)%
Depreciation and amortization
5,304
6,205
(901
)
(15
)%
3,095
3,614
(519
)
(14
)%
Other operating income (loss)
(120
)
5
(125
)
(2,500
)%
Operating income
$
2,975
$
3,619
$
(644
)
(18
)%
Distributions from WTLPG
$
1,500
$
1,300
$
200
15
%
NGL sales volumes (Bbls)
1,743
1,794
(51
)
(3
)%
Comparative Results of Operations for the Six Months Ended June 30, 2018 and 2017
Six Months Ended June 30,
Percent
2018
2017
Variance
Change
(In thousands)
Revenues:
Services
$
29,160
$
29,503
$
(343
)
(1
)%
Products
249,806
200,323
49,483
25
%
Total revenues
278,966
229,826
49,140
21
%
Cost of products sold
232,142
180,306
51,836
29
%
Operating expenses
11,675
11,225
450
4
%
Selling, general and administrative expenses
4,829
5,166
(337
)
(7
)%
Depreciation and amortization
10,605
12,366
(1,761
)
(14
)%
19,715
20,763
(1,048
)
(5
)%
Other operating income (loss)
(120
)
5
(125
)
(2,500
)%
Operating income
$
19,595
$
20,768
$
(1,173
)
(6
)%
Distributions from WTLPG
$
3,000
$
2,500
$
500
20
%
NGL sales volumes (Bbls)
5,184
4,604
580
13
%
MARTIN MIDSTREAM PARTNERS L.P. SEGMENT OPERATING INCOME (Dollars and volumes in thousands, except BBL per day)
Sulfur Services Segment
Comparative Results of Operations for the Three Months Ended June 30, 2018 and 2017
Three Months Ended June 30,
Percent
2018
2017
Variance
Change
(In thousands)
Revenues:
Services
$
2,787
$
2,850
$
(63
)
(2
)%
Products
35,684
32,027
3,657
11
%
Total revenues
38,471
34,877
3,594
10
%
Cost of products sold
28,829
21,297
7,532
35
%
Operating expenses
2,929
3,417
(488
)
(14
)%
Selling, general and administrative expenses
1,046
1,007
39
4
%
Depreciation and amortization
2,086
2,030
56
3
%
3,581
7,126
(3,545
)
(50
)%
Other operating income
16
—
16
Operating income
$
3,597
$
7,126
$
(3,529
)
(50
)%
Sulfur (long tons)
178
192
(14
)
(7
)%
Fertilizer (long tons)
93
71
22
31
%
Total sulfur services volumes (long tons)
271
263
8
3
%
Comparative Results of Operations for the Six Months Ended June 30, 2018 and 2017
Six Months Ended June 30,
Percent
2018
2017
Variance
Change
(In thousands)
Revenues:
Services
$
5,574
$
5,700
$
(126
)
(2
)%
Products
70,584
71,554
(970
)
(1
)%
Total revenues
76,158
77,254
(1,096
)
(1
)%
Cost of products sold
52,816
45,871
6,945
15
%
Operating expenses
5,841
6,664
(823
)
(12
)%
Selling, general and administrative expenses
2,081
2,028
53
3
%
Depreciation and amortization
4,150
4,063
87
2
%
11,270
18,628
(7,358
)
(39
)%
Other operating income (loss)
14
(22
)
36
(164
)%
Operating income
$
11,284
$
18,606
$
(7,322
)
(39
)%
Sulfur (long tons)
354
409
(55
)
(13
)%
Fertilizer (long tons)
181
165
16
10
%
Total sulfur services volumes (long tons)
535
574
(39
)
(7
)%
MARTIN MIDSTREAM PARTNERS L.P. SEGMENT OPERATING INCOME (Dollars and volumes in thousands, except BBL per day)
Marine Transportation Segment
Comparative Results of Operations for the Three Months Ended June 30, 2018 and 2017
Three Months Ended June 30,
Percent
2018
2017
Variance
Change
(In thousands)
Revenues
$
13,168
$
13,144
$
24
—
%
Operating expenses
10,374
11,062
(688
)
(6
)%
Selling, general and administrative expenses
87
71
16
23
%
Depreciation and amortization
1,811
1,764
47
3
%
896
247
649
263
%
Other operating loss
(350
)
—
(350
)
Operating income
$
546
$
247
$
299
121
%
Comparative Results of Operations for the Six Months Ended June 30, 2018 and 2017
Six Months Ended June 30,
Percent
2018
2017
Variance
Change
(In thousands)
Revenues
$
25,196
$
26,558
$
(1,362
)
(5
)%
Operating expenses
20,278
22,155
(1,877
)
(8
)%
Selling, general and administrative expenses
163
175
(12
)
(7
)%
Depreciation and amortization
3,497
3,429
68
2
%
$
1,258
$
799
$
459
57
%
Other operating loss
(350
)
(120
)
(230
)
192
%
Operating income
$
908
$
679
$
229
34
%
Non-GAAP Financial Measures
The following table reconciles the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three and six months ended June 30, 2018 and 2017, which represents EBITDA, Adjusted EBITDA and Distributable Cash Flow.
Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow
Three Months Ended
Six Months Ended
June 30,
June 30,
2018
2017
2018
2017
(in thousands)
Net income (loss)
$
(7,246
)
$
989
$
5,572
$
14,572
Adjustments:
Interest expense, net
13,766
11,219
26,451
22,139
Income tax expense
132
13
281
193
Depreciation and amortization
20,891
20,326
40,101
45,662
EBITDA
27,543
32,547
72,405
82,566
Adjustments:
Equity in earnings of WTLPG
(1,131
)
(853
)
(2,726
)
(1,758
)
(Gain) loss on sale of property, plant and equipment
490
(15
)
492
140
Unrealized mark-to-market on commodity derivatives
