Valero Energy Partners LP Reports Fourth Quarter 2013 Results
SAN ANTONIO, March 7, 2014 - Valero Energy Partners LP (NYSE: VLP, the Partnership), a growth-oriented, master limited partnership formed by Valero Energy Corporation, today reported fourth quarter 2013 net income of $12.1 million. For the period from the initial public offering (IPO) that closed on December 16, 2013, through December 31, 2013, net income was $2.0 million, or $0.03 per common unit. During this same period, the Partnership generated earnings before interest, income taxes, depreciation and amortization (EBITDA) of $2.6 million and distributable cash flow of $2.6 million.
On December 11, 2013, Valero Energy Partners’ common units began trading on the New York Stock Exchange under the ticker symbol “VLP.” The Partnership completed its IPO of 17,250,000 common units on December 16, 2013. The public owns a 29.4 percent limited partner interest in the Partnership, with Valero Energy Corporation, through certain of its subsidiaries, owning the remaining limited partner interests and the 2 percent general partner interest.
For the post-IPO period, transportation and terminaling throughput revenues were $4.0 million. Total operating expenses were $1.0 million, general and administrative expenses were $0.4 million, and depreciation expense was $0.5 million.
At the end of the year, the Partnership had $375 million in cash and cash equivalents, primarily related to net IPO proceeds, which the Partnership retained primarily to fund future acquisitions and capital expenditures. In addition, the Partnership has an undrawn $300 million revolving credit facility.
On January 20, 2014, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.037 per unit, or $2.2 million, which corresponds to the minimum quarterly distribution of $0.2125 per unit, or $0.85 per unit on an annualized basis. This distribution was prorated for the period following the closing of the IPO and was paid on February 12.
Commenting on growth opportunities for the coming year, the Partnership’s CEO, Joe Gorder, said “Our strategic sponsorship by the world’s largest independent refiner, Valero Energy Corporation, positions us very well to fuel our growth. We are actively evaluating acquisition opportunities and seek to deliver top-tier distribution growth to our unitholders.”
Results of operations for the fourth quarter of 2013 include the results of the Partnership’s predecessor through December 15, 2013. Because results presented for periods prior to the IPO do not factor into distributable cash flow, this earnings release focuses on results of operations for the post-IPO period. A reconciliation of the post-IPO period to the full fourth quarter 2013 results is provided in the tables attached to this release. Predecessor activity, when combined with Partnership results, is not necessarily reflective of future performance.
The Partnership’s senior management will host a conference call at 11 a.m. ET (10 a.m. CT) today to discuss this earnings release and provide an update on the Partnership’s operations. A live broadcast of the conference call will be available on the Partnership’s web site at www.valeroenergypartners.com.
The following information was filed by Valero Energy Partners Lp (VLP) on Friday, March 7, 2014 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.