USD Partners LP Announces Fourth Quarter and Full Year 2016 Results
Houston, TX - USD Partners LP (NYSE: USDP) (the “Partnership”) announced today its operating and financial results for the three and twelve months ended December 31, 2016. Highlights with respect to the fourth quarter of 2016 include the following:
Generated Net Cash Provided by Operating Activities of $16.0 million, Adjusted EBITDA of $16.8 million and Distributable Cash Flow of $16.0 million
Reported Net Income of $4.0 million
Increased quarterly cash distribution to $0.33 per unit ($1.32 per unit on an annualized basis)
Ended quarter with $188.6 million of available liquidity
“We are pleased to report another strong quarter at USD Partners and to announce our seventh consecutive distribution increase while delivering over 2.0x distribution coverage,” said Dan Borgen, the Partnership’s Chief Executive Officer. “We believe that our high-quality customer base and strategically located assets will continue to provide an excellent foundation for future growth. As crude oil production in Western Canada and demand for our assets increase, we expect to grow the distribution by 5-10% in 2017.”
Fourth Quarter 2016 Operational and Financial Results
Substantially all of the Partnership’s cash flows are generated from multi-year, take-or-pay terminal service agreements related to the Hardisty and Casper terminals, which include minimum monthly commitment fees. The Partnership’s customers include major integrated oil companies, refiners and marketers, the majority of which are investment grade rated.
The Partnership achieved significant growth during the fourth quarter of 2016 relative to the fourth quarter of 2015. Net Cash Provided by Operating Activities increased by 61%, while Adjusted EBITDA and Distributable Cash Flow increased by 31% and 56%, respectively. This growth was primarily attributable to the Partnership’s acquisition of the Casper terminal in November 2015 and was partially offset by higher interest expense on additional borrowings used to fund the acquisition, as well as additional operating costs associated with managing and operating the terminal.
Distributable Cash Flow for the fourth quarter of 2016 also benefited from a partial tax refund with respect to 2015 of approximately $2.3 million related to the activities of its foreign subsidiaries. Additionally, the Partnership received the remaining outstanding tax refund of approximately C$0.9 million in February of 2017. The Partnership expects to pay approximately C$5.7 million in Canadian income taxes with respect to 2017. These estimates for income taxes are based on the Partnership’s current operations and are subject to fluctuations in the operating results of the Partnership’s foreign subsidiaries and the exchange rate between the U.S. dollar and the Canadian dollar, among other factors.
The following information was filed by Usd Partners Lp (USDP) on Wednesday, March 8, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: USDP CIK: 1610682 Form Type:10-K Annual Report Accession Number: 0001610682-17-000068 Submitted to the SEC: Thu Mar 09 2017 4:22:55 PM EST Accepted by the SEC: Thu Mar 09 2017 Period: Saturday, December 31, 2016 Industry: Railroad Switching And Terminal Establishments