USD Partners LP Announces First Quarter 2017 Results
Houston, TX - USD Partners LP (NYSE: USDP) (the “Partnership”) announced today its operating and financial results for the three months ended March 31, 2017. Highlights with respect to the first quarter of 2017 include the following:
Generated Net cash provided by operating activities of $12.8 million, Adjusted EBITDA of $15.4 million and Distributable cash flow of $12.3 million
Reported Net income of $5.2 million
Increased quarterly cash distribution for eighth consecutive quarter to $0.335 per unit ($1.34 per unit on an annualized basis)
Ended quarter with $192.2 million of available liquidity
“The Partnership’s results continue to benefit from stable and predictable cash flows from high-quality customers,” said Dan Borgen, the Partnership’s Chief Executive Officer. “This enabled us to deliver another quarter of distribution growth, with approximately 1.6x coverage, while remaining well-positioned to execute on accretive growth opportunities.”
First Quarter 2017 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.
For the first quarter of 2017 relative to the first quarter of 2016, Net cash provided by operating activities increased by 39%, while Adjusted EBITDA and Distributable cash flow increased by 7% and 12%, respectively. These increases were primarily driven by a reduction in operating expenses due to one-time costs associated with the integration of the Casper terminal during the first quarter of 2016 and were partially offset by higher interest expense associated with the Partnership’s revolving credit facility.
Distributable cash flow for the first quarter of 2017 also benefited from an approximate $1.1 million decrease in Cash paid for income taxes, primarily due to the receipt of the remaining C$0.9 million tax refund, as well as lower Canadian income taxes paid during the quarter.
Net income, which increased 142% for the first quarter of 2017 relative to 2016, also benefited from additional Terminalling services revenue due to the recognition of greater amounts of previously deferred revenues in the current period as compared to the prior year. Additionally, the value of the Canadian dollar relative to the U.S. dollar strengthened to a lesser extent during the first quarter of 2017 relative to 2016, which resulted in smaller non-cash losses from changes in the fair value of the Partnership’s derivative instruments.
The following information was filed by Usd Partners Lp (USDP) on Wednesday, May 3, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.