Delaware | 1-12295 | 76-0513049 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
919 Milam Suite 2100, Houston, Texas | 77002 |
(Address of principal executive offices) | (Zip Code) |
(1) | the financial performance of our assets; |
(2) | our operating performance; |
(3) | the viability of potential projects, including our cash and overall return on alternative capital investments as compared to those of other companies in the midstream energy industry; |
(4) | the ability of our assets to generate cash sufficient to satisfy certain non-discretionary cash requirements, including interest payments and certain maintenance capital requirements; and |
(5) | our ability to make certain discretionary payments, such as distributions on our units, growth capital expenditures, certain maintenance capital expenditures and early payments of indebtedness. |
(1) | the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; |
(2) | our operating performance as compared to those of other companies in the midstream energy industry, without regard to financing and capital structure; |
(3) | the viability of potential projects, including our cash and overall return on alternative capital investments as compared to those of other companies in the midstream energy industry; |
(4) | the ability of our assets to generate cash sufficient to satisfy certain non-discretionary cash requirements, including interest payments and certain maintenance capital requirements; and |
(5) | our ability to make certain discretionary payments, such as distributions on our units, growth capital expenditures, certain maintenance capital expenditures and early payments of indebtedness. |
Exhibit No. | Description |
99.1 | Genesis Energy, L.P. press release, dated February 19, 2015 |
GENESIS ENERGY, L.P. (A Delaware Limited Partnership) | |||
By: | GENESIS ENERGY, LLC, as General Partner | ||
Date: | February 19, 2015 | By: | /s/ Robert V. Deere |
Robert V. Deere Chief Financial Officer |
• | We generated total Available Cash before Reserves of $62.9 million in the fourth quarter of 2014, an increase of $14.5 million, or 30.0%, from the fourth quarter of 2013. Adjusted EBITDA increased $20.5 million, or 33.1% over the prior year quarter, to $82.5 million. Available Cash before Reserves and Adjusted EBITDA are non-GAAP measures that are defined and reconciled later in this press release to the most directly comparable GAAP financial measure, income from continuing operations. |
• | We reported income from continuing operations of $26.2 million, or $0.28 per unit for the fourth quarter of 2014 compared to $16.7 million, or $0.19 per unit, for the same period in 2013. |
• | We expanded our reporting segments to five from our historical three. |
• | On February 13, 2015, we paid a total quarterly distribution of $56.5 million based on our quarterly declared distribution of $0.595 per unit attributable to our financial and operational results for the fourth quarter of 2014. Our Available Cash before Reserves provided 1.11 times coverage for this quarterly distribution. |
• | We increased our distribution to all unitholders for the thirty-eighth consecutive quarter, thirty-three of which have been 10% or greater over the prior year’s quarter and none less than 8.7%. |
Three Months Ended December 31, | |||||||
2014 | 2013 | ||||||
(in thousands) | |||||||
Onshore pipeline transportation | $ | 14,657 | $ | 14,326 | |||
Offshore pipeline transportation | 25,094 | 13,041 | |||||
Refinery services | 20,497 | 19,537 | |||||
Marine transportation | 24,727 | 17,820 | |||||
Supply and logistics | 7,467 | 8,305 | |||||
Total Segment Margin (1) | $ | 92,442 | $ | 73,029 |
Three Months Ended December 31, | |||||||
2014 | 2013 | ||||||
(in thousands) | |||||||
Income from continuing operations | $ | 26,166 | $ | 16,723 | |||
Depreciation and amortization | 25,989 | 18,005 | |||||
Cash received from direct financing leases not included in income | 1,416 | 1,324 | |||||
Cash effects of sales of certain assets and discontinued operations | 94 | 1,100 | |||||
Effects of distributable cash generated by equity method investees not included in income (1) | 10,767 | 7,230 | |||||
Cash effects of legacy stock appreciation rights plan | (315 | ) | (1,609 | ) | |||
Non-cash legacy stock appreciation rights plan expense | (1,717 | ) | 550 | ||||
Expenses related to acquiring or constructing growth capital assets | 638 | 1,582 | |||||
Unrealized loss (gain) on derivative transactions excluding fair value hedges, net of changes in inventory value | 695 | 4,053 | |||||
Maintenance capital expenditures (2) | — | (1,125 | ) | ||||
Maintenance capital utilized (2) | (390 | ) | — | ||||
Non-cash tax expense | 511 | 34 | |||||
Other items, net | (952 | ) | 526 | ||||
Available Cash before Reserves | $ | 62,902 | $ | 48,393 |
Distribution For | Date Paid | Per Unit Amount | ||||
2014 | ||||||
4th Quarter | February 13, 2015 | $ | 0.5950 | |||
3rd Quarter | November 14, 2014 | $ | 0.5800 | |||
2nd Quarter | August 14, 2014 | $ | 0.5650 | |||
1st Quarter | May 15, 2014 | $ | 0.5500 | |||
2013 | ||||||
4th Quarter | February 14, 2014 | $ | 0.5350 | |||
3rd Quarter | November 14, 2013 | $ | 0.5225 | |||
2nd Quarter | August 14, 2013 | $ | 0.5100 | |||
1st Quarter | May 15, 2013 | $ | 0.4975 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
REVENUES | $ | 847,282 | $ | 961,035 | $ | 3,846,164 | $ | 4,134,830 | |||||||
COSTS AND EXPENSES: | |||||||||||||||
Costs of sales | 780,448 | 907,652 | 3,572,013 | 3,912,499 | |||||||||||
General and administrative expenses | 10,221 | 12,078 | 50,692 | 46,790 | |||||||||||
Depreciation and amortization | 25,989 | 18,005 | 90,908 | 64,784 | |||||||||||
OPERATING INCOME | 30,624 | 23,300 | 132,551 | 110,757 | |||||||||||
Equity in earnings of equity investees | 15,378 | 6,057 | 43,135 | 22,675 | |||||||||||
Interest expense | (19,325 | ) | (12,300 | ) | (66,639 | ) | (48,583 | ) | |||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 26,677 | 17,057 | 109,047 | 84,849 | |||||||||||
Income tax expense | (511 | ) | (335 | ) | (2,845 | ) | (845 | ) | |||||||
INCOME FROM CONTINUING OPERATIONS | 26,166 | 16,722 | 106,202 | 84,004 | |||||||||||
Income from discontinued operations | — | 1,164 | — | 2,105 | |||||||||||
NET INCOME | $ | 26,166 | $ | 17,886 | $ | 106,202 | $ | 86,109 | |||||||
BASIC AND DILUTED NET INCOME PER COMMON UNIT: | |||||||||||||||
Continuing operations | $ | 0.28 | $ | 0.19 | $ | 1.18 | $ | 1.00 | |||||||
Discontinued operations | — | 0.01 | — | 0.03 | |||||||||||
Net income per common unit | $ | 0.28 | $ | 0.20 | $ | 1.18 | $ | 1.03 | |||||||
WEIGHTED AVERAGE OUTSTANDING COMMON UNITS: | |||||||||||||||
Basic and Diluted | 93,873 | 88,691 | 90,060 | 83,957 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
Onshore Pipeline Transportation Segment | |||||||||||
Crude oil pipelines (barrels/day): | |||||||||||
Texas | 63,739 | 43,463 | 58,829 | 51,067 | |||||||
Jay | 21,658 | 33,649 | 24,131 | 34,933 | |||||||
Mississippi | 14,565 | 16,437 | 14,829 | 18,026 | |||||||
Louisiana (1) | 16,283 | — | 18,436 | — | |||||||
Onshore crude oil pipelines total | 116,245 | 93,549 | 116,225 | 104,026 | |||||||
CO2 pipeline (Mcf/day) | |||||||||||
Free State | 180,839 | 124,674 | 173,770 | 190,274 | |||||||
Offshore Pipeline Transportation Segment | |||||||||||
Crude oil pipelines (barrels/day): | |||||||||||
CHOPS (2) | 187,745 | 173,487 | 183,726 | 143,854 | |||||||
Poseidon (2) | 212,466 | 200,425 | 209,647 | 207,372 | |||||||
Odyssey (2) | 51,960 | 47,126 | 46,717 | 44,978 | |||||||
GOPL | 6,575 | 7,951 | 6,458 | 8,583 | |||||||
Offshore crude oil pipelines total | 458,746 | 428,989 | 446,548 | 404,787 | |||||||
Refinery Services Segment | |||||||||||
NaHS (dry short tons sold) | 35,098 | 38,064 | 150,038 | 147,297 | |||||||
NaOH (caustic soda dry short tons sold) | 23,226 | 22,021 | 94,693 | 87,463 | |||||||
Marine Transportation Segment | |||||||||||
Inland Fleet Utilization Percentage (3) | 96.6 | % | 99.2 | % | 97.5 | % | 99.2 | % | |||
Offshore Fleet Utilization Percentage (3) | 99.1 | % | 100 | % | 99.6 | % | 99.8 | % | |||
Supply and Logistics Segment | |||||||||||
Crude oil and petroleum products sales (barrels/day) | 103,627 | 94,308 | 99,139 | 99,651 | |||||||
Rail load/unload volumes (barrels/day) (4) | 35,538 | 22,322 | 32,559 | 19,721 | |||||||
December 31, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 9,462 | $ | 8,866 | |||
Accounts receivable - trade, net | 271,529 | 368,033 | |||||
Inventories | 46,829 | 85,330 | |||||
Other current assets | 27,546 | 72,994 | |||||
Total current assets | 355,366 | 535,223 | |||||
Fixed assets, net | 1,631,001 | 1,128,744 | |||||
Investment in direct financing leases, net | 145,959 | 151,903 | |||||
Equity investees | 628,780 | 620,247 | |||||
Intangible assets, net | 82,931 | 62,928 | |||||
Goodwill | 325,046 | 325,046 | |||||
Other assets, net | 61,291 | 38,111 | |||||
Total assets | $ | 3,230,374 | $ | 2,862,202 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Accounts payable - trade | $ | 245,405 | $ | 316,204 | |||
Accrued liabilities | 117,740 | 130,349 | |||||
Total current liabilities | 363,145 | 446,553 | |||||
Senior secured credit facility | 550,400 | 582,800 | |||||
Senior unsecured notes | 1,050,639 | 700,772 | |||||
Deferred tax liabilities | 18,754 | 15,944 | |||||
Other long-term liabilities | 18,233 | 18,396 | |||||
Partners' capital: | |||||||
Common unitholders | 1,229,203 | 1,097,737 | |||||
Total liabilities and partners' capital | $ | 3,230,374 | $ | 2,862,202 | |||
Units Data: | |||||||
Total common units outstanding | 95,029,218 | 88,690,985 |
Three Months Ended December 31, | |||||||
2014 | 2013 | ||||||
Segment Margin (1) | $ | 92,442 | $ | 73,029 | |||
Corporate general and administrative expenses | (9,350 | ) | (11,098 | ) | |||
Non-cash items included in general and administrative costs | (892 | ) | 116 | ||||
Cash expenditures not included in Adjusted EBITDA | 638 | 1,582 | |||||
Cash expenditures not included in net income | (315 | ) | (1,609 | ) | |||
Adjusted EBITDA | 82,523 | 62,020 | |||||
Depreciation and amortization | (25,989 | ) | (18,005 | ) | |||
Interest expense, net | (19,325 | ) | (12,300 | ) | |||
Cash expenditures not included in Adjusted EBITDA or net income | (323 | ) | 27 | ||||
Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income (2) | (10,767 | ) | (7,230 | ) | |||
Non-cash legacy stock appreciation rights plan expense | 1,717 | (550 | ) | ||||
Other non-cash items | (1,159 | ) | (5,613 | ) | |||
Income tax expense | (511 | ) | (335 | ) | |||
Discontinued operations | — | (1,292 | ) | ||||
Income from continuing operations | $ | 26,166 | $ | 16,722 |
December 31, 2014 | ||||
Senior secured credit facility | $ | 550,400 | ||
Senior unsecured notes (excluding unamortized premium of $639) | 1,050,000 | |||
Less: Outstanding inventory financing sublimit borrowings | (45,000 | ) | ||
Less: Cash and cash equivalents | (9,462 | ) | ||
Adjusted Debt (1) | $ | 1,545,938 | ||
Pro Forma LTM | ||||
December 31, 2014 | ||||
LTM Adjusted EBITDA (as reported) (2) | $ | 300,903 | ||
Acquisitions and material projects EBITDA adjustment (3) | 49,953 | |||
Pro Forma EBITDA | $ | 350,856 | ||
Adjusted Debt-to-Pro Forma EBITDA | 4.41 | x |
(1) | the financial performance of our assets; |
(2) | our operating performance; |
(3) | the viability of potential projects, including our cash and overall return on alternative capital investments as compared to those of other companies in the midstream energy industry; |
(4) | the ability of our assets to generate cash sufficient to satisfy certain non-discretionary cash requirements, including interest payments and certain maintenance capital requirements; and |
(5) | our ability to make certain discretionary payments, such as distributions on our units, growth capital expenditures, certain maintenance capital expenditures and early payments of indebtedness. |
(1) | the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; |
(2) | our operating performance as compared to those of other companies in the midstream energy industry, without regard to financing and capital structure; |
(3) | the viability of potential projects, including our cash and overall return on alternative capital investments as compared to those of other companies in the midstream energy industry; |
(4) | the ability of our assets to generate cash sufficient to satisfy certain non-discretionary cash requirements, including interest payments and certain maintenance capital requirements; and |
(5) | our ability to make certain discretionary payments, such as distributions on our units, growth capital expenditures, certain maintenance capital expenditures and early payments of indebtedness. |
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