USD Partners LP Announces First Quarter 2019 Results
Houston, TX - USD Partners LP (NYSE: USDP) (the “Partnership”) announced today its operating and financial results for the three months ended March 31, 2019. Financial highlights with respect to the first quarter of 2019 include the following:
Generated Net Cash Provided by Operating Activities of $10.2 million, Adjusted EBITDA(1) of $11.5 million and Distributable Cash Flow of $8.4 million
Reported Net Income of $1.3 million
Increased quarterly cash distribution to $0.3625 per unit ($1.45 per unit on an annualized basis), delivering distribution growth of 0.7% over the prior quarter and 2.8% over the first quarter of 2018
Ended quarter with $181 million of available liquidity
“We are pleased to announce our sixteenth consecutive quarterly distribution increase, which is consistent with our previously stated 2019 distribution guidance,” said Dan Borgen, the Partnership’s Chief Executive Officer. “As we mentioned on our fourth quarter earnings call, we look forward to transitioning into the second half of this year, when the higher rates from our recently extended terminalling services agreements will begin to show up in our financial results. In addition, the forward curves today show the spread between a Western Canadian Select and a West Texas Intermediate barrel of crude oil widening to levels that should incentivize our customers to fully utilize the capacity at our terminals.”
First Quarter 2019 Liquidity, Operational and Financial Results
Substantially all of the Partnership’s cash flows are generated from multi-year, take-or-pay terminalling services agreements related to its crude oil 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’s results during the first quarter of 2019 relative to the same quarter in 2018 were primarily influenced by lower revenues at its Casper terminal resulting from the conclusion of a customer agreement at the end of 2018, which were partially offset by higher revenues at its Stroud terminal associated with additional contracts that were executed in March and April of 2018. Additionally, the Partnership experienced higher variable operating costs at its Hardisty and Stroud terminals, which it incurred with the anticipation of higher volumes during the quarter, as well as higher operations and maintenance costs at its Stroud terminal, which were partially offset by a reduction in pipeline fees and a decrease in depreciation expense.
Net Cash Provided by Operating Activities increased by 26% relative to the first quarter of 2018, primarily due to the timing of receipts and payments on accounts receivable, accounts payable and deferred revenue balances.
Adjusted EBITDA decreased by 15% and Distributable Cash Flow (“DCF”) decreased by 24% relative to the first quarter of 2018. The decrease in Adjusted EBITDA was primarily a result of the operating factors
(1) The Partnership presents both GAAP and non-GAAP financial measures in this press release to assist in understanding the Partnership’s liquidity and ability to fund distributions. See “Non-GAAP Financial Measures” on page 3 and reconciliations of Net Cash Provided by Operating Activities, the most directly comparable GAAP measure, to Adjusted EBITDA and Distributable Cash Flow on page 8 of this press release.
The following information was filed by Usd Partners Lp (USDP) on Monday, May 6, 2019 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.