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 18, 2016 |
GENESIS ENERGY, L.P. (A Delaware Limited Partnership) | |||
By: | GENESIS ENERGY, LLC, as General Partner | ||
Date: | February 18, 2016 | By: | /s/ Robert V. Deere |
Robert V. Deere Chief Financial Officer |
• | We generated a record amount of total Available Cash before Reserves of $102.3 million in the fourth quarter of 2015, an increase of $39.4 million, or 63%, from the fourth quarter of 2014. Adjusted EBITDA for the fourth quarter of 2015 was $137.6 million, an increase of $55.1 million, or 67%, over the prior year quarter. 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, net income. These increases are primarily attributable to our acquisition on July 24, 2015 of the offshore pipelines and services business of Enterprise Products Partners, L.P. and its affiliates (the "Enterprise acquisition"). |
• | We reported Net Income Attributable to Genesis Energy, L.P. of $27.4 million, or $0.25 per unit, for the fourth quarter of 2015 compared to $26.2 million, or $0.28 per unit, for the same period in 2014. |
• | On February 12, 2016, we paid a total quarterly distribution of $72.0 million based on our quarterly declared distribution of $0.655 per unit attributable to our financial and operational results for the fourth quarter of 2015. Our Available Cash before Reserves provided 1.42 times coverage for this quarterly distribution. |
• | We increased our distribution to all unitholders for the forty-second consecutive quarter, thirty-seven of which have been 10% or greater over the prior year’s quarter and none less than 8.7%. |
Three Months Ended December 31, | |||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Offshore pipeline transportation | 76,482 | 25,094 | |||||
Onshore pipeline transportation | 15,249 | 14,657 | |||||
Refinery services | 20,173 | 20,497 | |||||
Marine transportation | 23,721 | 24,727 | |||||
Supply and logistics | 7,562 | 7,467 | |||||
Total Segment Margin (1) | $ | 143,187 | $ | 92,442 |
Three Months Ended December 31, | |||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Net income attributable to Genesis Energy, L.P. | $ | 27,434 | $ | 26,166 | |||
Depreciation and amortization | 53,640 | 25,989 | |||||
Cash received from direct financing leases not included in income | 1,470 | 1,416 | |||||
Cash effects of sales of certain assets | 240 | 94 | |||||
Effects of distributable cash generated by equity method investees not included in income | 17,635 | 10,767 | |||||
Cash effects of legacy stock appreciation rights plan | (356 | ) | (315 | ) | |||
Non-cash legacy stock appreciation rights plan expense | (462 | ) | (1,717 | ) | |||
Expenses related to acquiring or constructing growth capital assets | 3,726 | 638 | |||||
Unrealized gain (loss) on derivative transactions excluding fair value hedges, net of changes in inventory value | (486 | ) | 695 | ||||
Maintenance capital utilized (1) | (1,350 | ) | (390 | ) | |||
Non-cash tax expense | 545 | 511 | |||||
Adjustment to step up of historical basis on CHOPS and SEKCO | 2,880 | — | |||||
Other items, net | (2,627 | ) | (952 | ) | |||
Available Cash before Reserves | $ | 102,289 | $ | 62,902 |
Distribution For | Date Paid | Per Unit Amount | ||||
2015 | ||||||
4th Quarter | February 12, 2016 | $ | 0.6550 | |||
3rd Quarter | November 13, 2015 | $ | 0.6400 | |||
2nd Quarter | August 14, 2015 | $ | 0.6250 | |||
1st Quarter | May 15, 2015 | $ | 0.6100 | |||
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 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
REVENUES | $ | 491,011 | $ | 847,282 | $ | 2,246,529 | $ | 3,846,164 | |||||||
COSTS AND EXPENSES: | |||||||||||||||
Costs of sales | 369,358 | 780,448 | 1,874,527 | 3,572,013 | |||||||||||
General and administrative expenses | 10,143 | 10,221 | 64,995 | 50,692 | |||||||||||
Depreciation and amortization | 53,640 | 25,989 | 150,140 | 90,908 | |||||||||||
OPERATING INCOME | 57,870 | 30,624 | 156,867 | 132,551 | |||||||||||
Equity in earnings of equity investees | 6,010 | 15,378 | 54,450 | 43,135 | |||||||||||
Interest expense | (33,859 | ) | (19,325 | ) | (100,596 | ) | (66,639 | ) | |||||||
Gain on basis step up on historical interest | (2,880 | ) | — | 332,380 | — | ||||||||||
Other income/(expense), net | — | — | (17,529 | ) | — | ||||||||||
INCOME BEFORE INCOME TAXES | 27,141 | 26,677 | 425,572 | 109,047 | |||||||||||
Income tax expense | (845 | ) | (511 | ) | (3,987 | ) | (2,845 | ) | |||||||
NET INCOME | 26,296 | 26,166 | 421,585 | 106,202 | |||||||||||
Net loss attributable to noncontrolling interests | 1,138 | — | 943 | — | |||||||||||
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. | $ | 27,434 | $ | 26,166 | $ | 422,528 | $ | 106,202 | |||||||
NET INCOME PER COMMON UNIT: | |||||||||||||||
Basic and Diluted | $ | 0.24 | $ | 0.28 | $ | 4.09 | $ | 1.18 | |||||||
WEIGHTED AVERAGE OUTSTANDING COMMON UNITS: | |||||||||||||||
Basic and Diluted | 109,979 | 93,873 | 103,004 | 90,060 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Offshore Pipeline Transportation Segment | |||||||||||
Crude oil pipelines (barrels/day unless otherwise noted): | |||||||||||
CHOPS (3) | 175,238 | 187,745 | 172,647 | 183,726 | |||||||
Poseidon (3) | 269,334 | 212,466 | 259,568 | 209,647 | |||||||
Odyssey (3) | 100,918 | 51,960 | 72,958 | 46,717 | |||||||
GOPL | 10,099 | 6,575 | 13,038 | 6,458 | |||||||
Offshore crude oil pipelines total | 555,589 | 458,746 | 518,211 | 446,548 | |||||||
SEKCO (3) | 76,021 | — | 61,766 | — | |||||||
Natural gas transportation volumes (MMBBtus/d) (3) | 689,529 | — | 708,556 | — | |||||||
Onshore Pipeline Transportation Segment | |||||||||||
Crude oil pipelines (barrels/day): | |||||||||||
Texas | 75,142 | 63,739 | 71,906 | 58,829 | |||||||
Jay | 16,194 | 21,658 | 16,828 | 24,131 | |||||||
Mississippi | 13,177 | 14,565 | 15,472 | 14,829 | |||||||
Louisiana (1) | 42,808 | 16,283 | 32,481 | 18,436 | |||||||
Wyoming (2) | 7,195 | — | 7,397 | — | |||||||
Onshore crude oil pipelines total | 154,516 | 116,245 | 144,084 | 116,225 | |||||||
CO2 pipeline (Mcf/day) | |||||||||||
Free State | 142,428 | 180,839 | 161,409 | 173,770 | |||||||
Refinery Services Segment | |||||||||||
NaHS (dry short tons sold) | 31,409 | 35,098 | 127,063 | 150,038 | |||||||
NaOH (caustic soda dry short tons sold) | 19,691 | 23,226 | 86,914 | 94,693 | |||||||
Marine Transportation Segment | |||||||||||
Inland Fleet Utilization Percentage (4) | 93.6 | % | 96.6 | % | 96.7 | % | 97.5 | % | |||
Offshore Fleet Utilization Percentage (4) | 95.1 | % | 99.1 | % | 98.7 | % | 99.6 | % | |||
Supply and Logistics Segment | |||||||||||
Crude oil and petroleum products sales (barrels/day) | 80,698 | 103,627 | 91,074 | 99,139 | |||||||
Rail load/unload volumes (barrels/day) (5) | 35,949 | 35,538 | 27,044 | 32,559 | |||||||
December 31, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 10,895 | $ | 9,462 | |||
Accounts receivable - trade, net | 219,532 | 271,529 | |||||
Inventories | 43,775 | 46,829 | |||||
Other current assets | 32,114 | 27,546 | |||||
Total current assets | 306,316 | 355,366 | |||||
Fixed assets, net | 3,931,979 | 1,631,001 | |||||
Investment in direct financing leases, net | 139,728 | 145,959 | |||||
Equity investees | 474,392 | 628,780 | |||||
Intangible assets, net | 223,446 | 82,931 | |||||
Goodwill | 325,046 | 325,046 | |||||
Other assets, net | 58,692 | 41,541 | |||||
Total assets | $ | 5,459,599 | $ | 3,210,624 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Accounts payable - trade | $ | 140,726 | $ | 245,405 | |||
Accrued liabilities | 161,410 | 117,740 | |||||
Total current liabilities | 302,136 | 363,145 | |||||
Senior secured credit facility | 1,115,000 | 550,400 | |||||
Senior unsecured notes | 1,807,054 | 1,030,889 | |||||
Deferred tax liabilities | 22,586 | 18,754 | |||||
Other long-term liabilities | 192,072 | 18,233 | |||||
Partners' capital: | |||||||
Common unitholders | 2,029,101 | 1,229,203 | |||||
Noncontrolling interests | (8,350 | ) | — | ||||
Total partners' capital | 2,020,751 | 1,229,203 | |||||
Total liabilities and partners' capital | $ | 5,459,599 | $ | 3,210,624 | |||
Units Data: | |||||||
Total common units outstanding | 109,979,218 | 95,029,218 |
Three Months Ended December 31, | |||||||
2015 | 2014 | ||||||
Segment Margin (1) | $ | 143,187 | $ | 92,442 | |||
Corporate general and administrative expenses | (9,178 | ) | (9,350 | ) | |||
Non-cash items included in general and administrative costs | 206 | (892 | ) | ||||
Cash expenditures not included in Adjusted EBITDA | 3,726 | 638 | |||||
Cash expenditures not included in net income | (358 | ) | (315 | ) | |||
Adjusted EBITDA | 137,583 | 82,523 | |||||
Depreciation and amortization | (53,640 | ) | (25,989 | ) | |||
Interest expense, net | (33,859 | ) | (19,325 | ) | |||
Cash expenditures not included in Adjusted EBITDA or net income | (3,368 | ) | (323 | ) | |||
Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income | (17,635 | ) | (10,767 | ) | |||
Non-cash legacy stock appreciation rights plan expense | 462 | 1,717 | |||||
Adjustment on step up of historical basis in CHOPS and SEKCO | (2,880 | ) | — | ||||
Other non-cash items | 1,616 | (1,159 | ) | ||||
Income tax expense | (845 | ) | (511 | ) | |||
Net income attributable to Genesis Energy, L.P. | $ | 27,434 | $ | 26,166 |
December 31, 2015 | ||||
Senior secured credit facility | $ | 1,115,000 | ||
Senior unsecured notes | 1,850,000 | |||
Less: Outstanding inventory financing sublimit borrowings | (33,800 | ) | ||
Less: Cash and cash equivalents | (10,895 | ) | ||
Adjusted Debt (1) | $ | 2,920,305 | ||
Pro Forma LTM | ||||
December 31, 2015 | ||||
LTM Adjusted EBITDA (as reported) (2) | $ | 434,139 | ||
Acquisitions and material projects EBITDA adjustment (3) | 132,818 | |||
Pro Forma EBITDA | $ | 566,957 | ||
Adjusted Debt-to-Pro Forma EBITDA | 5.15 | 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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