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 August 2, 2017 |
GENESIS ENERGY, L.P. (A Delaware Limited Partnership) | |||
By: | GENESIS ENERGY, LLC, as General Partner | ||
Date: | August 3, 2017 | By: | /s/ Robert V. Deere |
Robert V. Deere Chief Financial Officer |
* | We reported the following results for the second quarter of 2017 compared to the same quarter in 2016: |
• | Net Income Attributable to Genesis Energy, L.P. of $33.7 million, or $0.28 per unit, for the second quarter of 2017 compared to $23.7 million, or $0.22 per unit, for the same period in 2016, representing an increase of $10.0 million, or 42%. |
• | Cash Flows from Operating Activities of $119.3 million for the second quarter of 2017 compared to $62.6 million for the same period in 2016, representing an increase of $56.8 million, or 91%. |
• | Available Cash before Reserves of $90.2 million in the second quarter of 2017, a decrease of $5.9 million over the prior year quarter, or 6.1%, providing 1.02 coverage for our quarterly distribution to unitholders attributable to that quarter, which is discussed below. |
• | Adjusted EBITDA for the second quarter of 2017 was $126.4 million, a decrease of $7.0 million, or 5.3%, over the prior year quarter. Our Adjusted Debt to Pro Forma EBITDA ratio is 5.40 as of June 30, 2017. These amounts are calculated and further discussed later in this press release. |
* | On August 14, 2017, we will pay a total quarterly distribution of $88.6 million based on our quarterly declared distribution of $0.7225 per unit attributable to our financial and operational results for the second quarter of 2017. This represents an increase in our distribution for the forty-eighth consecutive quarter. |
Three Months Ended June 30, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Offshore pipeline transportation | $ | 78,211 | $ | 84,282 | |||
Onshore facilities and transportation | 25,296 | 20,261 | |||||
Refinery services | 16,337 | 19,861 | |||||
Marine transportation | 14,156 | 18,082 | |||||
Total Segment Margin | $ | 134,000 | $ | 142,486 |
Distribution For | Date Paid | Per Unit Amount | ||||
2017 | ||||||
2nd Quarter | August 14, 2017 | $ | 0.7225 | |||
1st Quarter | May 15, 2017 | $ | 0.7200 | |||
2016 | ||||||
4th Quarter | February 14, 2017 | $ | 0.7100 | |||
3rd Quarter | November 14, 2016 | $ | 0.7000 | |||
2nd Quarter | August 12, 2016 | $ | 0.6900 | |||
1st Quarter | May 13, 2016 | $ | 0.6725 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
REVENUES | $ | 406,723 | $ | 445,976 | $ | 822,214 | $ | 824,390 | |||||||
COSTS AND EXPENSES: | |||||||||||||||
Costs of sales and operating expenses | 306,013 | 330,805 | 602,819 | 590,515 | |||||||||||
General and administrative expenses | 9,338 | 11,283 | 19,314 | 23,504 | |||||||||||
Depreciation and amortization | 56,609 | 55,900 | 112,721 | 102,535 | |||||||||||
Gain on sale of assets | (26,684 | ) | — | (26,684 | ) | — | |||||||||
OPERATING INCOME | 61,447 | 47,988 | 114,044 | 107,836 | |||||||||||
Equity in earnings of equity investees | 10,426 | 12,157 | 21,761 | 22,874 | |||||||||||
Interest expense | (37,990 | ) | (35,535 | ) | (74,729 | ) | (69,922 | ) | |||||||
INCOME BEFORE INCOME TAXES | 33,883 | 24,610 | 61,076 | 60,788 | |||||||||||
Income tax expense | (303 | ) | (1,009 | ) | (558 | ) | (2,010 | ) | |||||||
NET INCOME | 33,580 | 23,601 | 60,518 | 58,778 | |||||||||||
Net loss attributable to noncontrolling interests | 153 | 126 | 305 | 252 | |||||||||||
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. | $ | 33,733 | $ | 23,727 | $ | 60,823 | $ | 59,030 | |||||||
NET INCOME PER COMMON UNIT: | |||||||||||||||
Basic and Diluted | $ | 0.28 | $ | 0.22 | $ | 0.50 | $ | 0.54 | |||||||
WEIGHTED AVERAGE OUTSTANDING COMMON UNITS: | |||||||||||||||
Basic and Diluted | 122,579 | 109,979 | 120,495 | 109,979 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Offshore Pipeline Transportation Segment | |||||||||||
Crude oil pipelines (barrels/day unless otherwise noted): | |||||||||||
CHOPS | 219,693 | 214,884 | 228,851 | 205,878 | |||||||
Poseidon (1) | 256,727 | 265,157 | 258,507 | 257,386 | |||||||
Odyssey (1) | 116,663 | 104,816 | 115,645 | 106,304 | |||||||
GOPL | 6,719 | 5,030 | 8,089 | 5,612 | |||||||
Offshore crude oil pipelines total | 599,802 | 589,887 | 611,092 | 575,180 | |||||||
Natural gas transportation volumes (MMbtus/d) (1) | 502,801 | 588,068 | 539,347 | 592,933 | |||||||
Refinery Services Segment | |||||||||||
NaHS (dry short tons sold) | 30,665 | 30,011 | 65,194 | 61,817 | |||||||
NaOH (caustic soda dry short tons sold) | 17,809 | 21,387 | 34,216 | 40,149 | |||||||
Marine Transportation Segment | |||||||||||
Inland Fleet Utilization Percentage (2) | 90.6 | % | 91.7 | % | 90.3 | % | 93.3 | % | |||
Offshore Fleet Utilization Percentage (2) | 99.3 | % | 91.6 | % | 97.9 | % | 88.5 | % | |||
Onshore Facilities and Transportation Segment | |||||||||||
Crude oil pipelines (barrels/day): | |||||||||||
Texas | 31,598 | 40,568 | 19,822 | 56,963 | |||||||
Jay | 14,435 | 14,583 | 14,868 | 14,178 | |||||||
Mississippi | 8,520 | 10,715 | 8,668 | 11,164 | |||||||
Louisiana (3) | 131,300 | 20,213 | 107,100 | 24,869 | |||||||
Wyoming | 20,638 | 13,987 | 18,603 | 10,684 | |||||||
Onshore crude oil pipelines total | 206,491 | 100,066 | 169,061 | 117,858 | |||||||
Free State- CO2 Pipeline (Mcf/day) | 60,070 | 83,965 | 75,420 | 107,795 | |||||||
Crude oil and petroleum products sales (barrels/day) | 48,564 | 65,929 | 47,819 | 67,955 | |||||||
Rail load/unload volumes (barrels/day) (4) | 69,362 | 5,735 | 61,511 | 13,472 |
June 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 10,077 | $ | 7,029 | |||
Accounts receivable - trade, net | 217,834 | 224,682 | |||||
Inventories | 68,787 | 98,587 | |||||
Other current assets | 31,012 | 29,271 | |||||
Total current assets | 327,710 | 359,569 | |||||
Fixed assets, net | 4,213,814 | 4,214,864 | |||||
Investment in direct financing leases, net | 129,164 | 132,859 | |||||
Equity investees | 390,326 | 408,756 | |||||
Intangible assets, net | 193,389 | 204,887 | |||||
Goodwill | 325,046 | 325,046 | |||||
Other assets, net | 60,927 | 56,611 | |||||
Total assets | $ | 5,640,376 | $ | 5,702,592 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Accounts payable - trade | $ | 117,100 | $ | 119,841 | |||
Accrued liabilities | 120,096 | 140,962 | |||||
Total current liabilities | 237,196 | 260,803 | |||||
Senior secured credit facility | 1,211,000 | 1,278,200 | |||||
Senior unsecured notes, net of debt issuance costs | 1,816,259 | 1,813,169 | |||||
Deferred tax liabilities | 26,249 | 25,889 | |||||
Other long-term liabilities | 199,835 | 204,481 | |||||
Partners' capital: | |||||||
Common unitholders | 2,159,698 | 2,130,331 | |||||
Noncontrolling interests | (9,861 | ) | (10,281 | ) | |||
Total partners' capital | 2,149,837 | 2,120,050 | |||||
Total liabilities and partners' capital | $ | 5,640,376 | $ | 5,702,592 | |||
Units Data: | |||||||
Total common units outstanding | 122,579,218 | 117,979,218 |
Three Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Total Segment Margin (1) | $ | 134,000 | $ | 142,486 | |||
Corporate general and administrative expenses | (7,137 | ) | (10,491 | ) | |||
Non-cash items included in general and administrative costs | (763 | ) | 778 | ||||
Cash expenditures not included in Adjusted EBITDA | 327 | 747 | |||||
Cash expenditures not included in net income | (8 | ) | (57 | ) | |||
Adjusted EBITDA | 126,419 | 133,463 | |||||
Depreciation, amortization and accretion | (59,382 | ) | (62,213 | ) | |||
Interest expense, net | (37,990 | ) | (35,535 | ) | |||
Cash expenditures not included in Adjusted EBITDA | (319 | ) | (690 | ) | |||
Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income | (9,140 | ) | (11,141 | ) | |||
Differences in timing of cash receipts for certain contractual arrangements (2) | 3,166 | 3,163 | |||||
Other non-cash items | (2,813 | ) | (2,311 | ) | |||
Income tax expense | (303 | ) | (1,009 | ) | |||
Gain on sale of assets | 26,684 | — | |||||
Non-cash provision for leased items no longer in use | (12,589 | ) | — | ||||
Net income attributable to Genesis Energy, L.P. | $ | 33,733 | $ | 23,727 |
Three Months Ended June 30, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Net income attributable to Genesis Energy, L.P. | $ | 33,733 | $ | 23,727 | |||
Depreciation, amortization and accretion | 59,382 | 62,213 | |||||
Cash received from direct financing leases not included in income | 1,709 | 1,548 | |||||
Cash effects of sales of certain assets | 5,003 | 209 | |||||
Effects of distributable cash generated by equity method investees not included in income | 9,140 | 11,141 | |||||
Expenses related to acquiring or constructing growth capital assets | 327 | 747 | |||||
Unrealized (gain) loss on derivative transactions excluding fair value hedges, net of changes in inventory value | 480 | (338 | ) | ||||
Maintenance capital utilized (1) | (3,120 | ) | (1,795 | ) | |||
Non-cash tax expense | 153 | 710 | |||||
Differences in timing of cash receipts for certain contractual arrangements (2) | (3,166 | ) | (3,163 | ) | |||
Gain on sale of assets | (26,684 | ) | — | ||||
Non-cash provision for leased items no longer in use | 12,589 | — | |||||
Other items, net | 618 | 1,036 | |||||
Available Cash before Reserves | $ | 90,164 | $ | 96,035 |
Three Months Ended June 30, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Cash Flows from Operating Activities | $ | 119,349 | $ | 62,566 | |||
Maintenance capital utilized (1) | (3,120 | ) | (1,795 | ) | |||
Proceeds from asset sales | 5,003 | 209 | |||||
Amortization of debt issuance costs and discount | (2,678 | ) | (2,551 | ) | |||
Effects of available cash from joint ventures not included in operating cash flows | 4,805 | 6,063 | |||||
Net effect of changes in components of operating assets and liabilities not included in calculation of Available Cash before Reserves | (37,381 | ) | 38,174 | ||||
Non-cash effect of equity based compensation expense | 2,248 | (4,679 | ) | ||||
Expenses related to acquiring or constructing growth capital assets | 327 | 747 | |||||
Differences in timing of cash receipts for certain contractual arrangements (2) | (3,166 | ) | (3,163 | ) | |||
Other items affecting available cash | 4,777 | 464 | |||||
Available Cash before Reserves | $ | 90,164 | $ | 96,035 |
Three Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Cash Flows from Operating Activities | $ | 119,349 | $ | 62,566 | |||
Interest Expense | 37,990 | 35,535 | |||||
Amortization of debt issuance costs and discount | (2,678 | ) | (2,551 | ) | |||
Effects of available cash from equity method investees not included in operating cash flows | 4,805 | 6,063 | |||||
Net effect of changes in components of operating assets and liabilities not included in calculation of Adjusted EBITDA | (37,381 | ) | 38,174 | ||||
Non-cash effect of equity based compensation expense | 2,248 | (4,679 | ) | ||||
Expenses related to acquiring or constructing growth capital assets | 327 | 747 | |||||
Differences in timing of cash receipts for certain contractual arrangements (1) | (3,166 | ) | (3,163 | ) | |||
Other items, net | 4,925 | 771 | |||||
Adjusted EBITDA | $ | 126,419 | $ | 133,463 |
June 30, 2017 | ||||
Senior secured credit facility | $ | 1,211,000 | ||
Senior unsecured notes | 1,816,259 | |||
Less: Outstanding inventory financing sublimit borrowings | (47,600 | ) | ||
Less: Cash and cash equivalents | (10,077 | ) | ||
Adjusted Debt (1) | $ | 2,969,582 | ||
Pro Forma LTM | ||||
June 30, 2017 | ||||
LTM Adjusted EBITDA (as reported) (2) | $ | 522,723 | ||
Acquisitions and material projects EBITDA adjustment (3) | 26,763 | |||
Pro Forma EBITDA | $ | 549,486 | ||
Adjusted Debt-to-Pro Forma EBITDA | 5.40 | 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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