Valero Energy Partners LP Reports Solid Fourth Quarter 2015 and Full Year Results
Reported fourth quarter 2015 EBITDA of $57 million and distributable cash flow of $53 million
Delivered annual distribution growth of 27 percent in 2015
Reported 2.33x coverage ratio for the fourth quarter of 2015
Targeting 25 percent annual distribution growth through 2017
Expanded revolving credit facility to $750 million
SAN ANTONIO, February 4, 2016 – Valero Energy Partners LP (NYSE: VLP, the “Partnership”) today reported fourth quarter 2015 net income attributable to partners of $45 million, or $0.69 per common limited partner unit. The Partnership generated earnings before interest, income taxes, depreciation, and amortization (“EBITDA”) of $57 million and distributable cash flow of $53 million. VLP’s coverage ratio for the fourth quarter was 2.33x.
For the year ended December 31, 2015, net income attributable to partners was $132 million, or $2.12 per common limited partner unit. EBITDA was $171 million and distributable cash flow was $162 million.
“With solid operations, a strong balance sheet, and a healthy coverage ratio, VLP is well positioned to achieve our distribution growth target,” said Joe Gorder, Chairman and Chief Executive Officer of VLP’s general partner.
The Partnership expects to grow distributions at an annual rate of 25 percent through 2017.
On January 25, the board of directors of VLP’s general partner declared a fourth quarter 2015 cash distribution of $0.32 per unit. This distribution represents a 4 percent increase from the third quarter of 2015 and results in a 27 percent annual increase.
Revenues were $79 million for the fourth quarter of 2015 and $244 million for 2015. Operating expenses in the fourth quarter of 2015 were $19 million, general and administrative expenses were $3 million, and depreciation expense was $9 million. For 2015, operating expenses were $84 million, general and administrative expenses were $14 million, and depreciation expense was $38 million. Revenues for the Partnership were higher in 2015 compared to 2014 primarily due to the acquisition of the Houston, St. Charles, and Corpus Christi terminals in 2015.
Liquidity and Financial Position
In November, VLP expanded its revolving credit facility from $300 million to $750 million and completed its first equity offering subsequent to its initial public offering, issuing 4.25 million common units. The offering generated gross proceeds of $197 million, of which $185 million was used to pay down a subordinated loan with Valero Energy Corporation (NYSE: VLO). As of
The following information was filed by Valero Energy Partners Lp (VLP) on Thursday, February 4, 2016 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.