General | Quarterly / Earnings Reports | Third Quarter (3Q) Update
Marlin Midstream Sees Growth in Crude Oil Logistics Sector
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Marlin Midstream Partners, LP reported financial results for the third quarter of 2014.
For the third quarter of 2014, net income totaled $6.1 million, $0.33 per limited partner unit, and adjusted EBITDA was $8.8 million. Distributable cash flow for the third quarter of 2014 was $8.1 million resulting in a distribution coverage ratio of over 1.2x for the period.
Chairman and CEO W. Keith Maxwell III commented: "We are pleased to announce yet another quarter of strong financial results for the Partnership. With the completion of our first dropdown at the beginning of August this quarter, we have again achieved a coverage ratio well ahead of target and have increased our third quarter distribution by 1.4% to $0.365 per unit or $1.46 on an annualized basis. As we proceed in the last quarter of 2014, we will continue to focus on steadily increasing distributions to our unitholders while executing on growth opportunities."
Financial Results
For the third quarter of 2014, Marlin reported gross margin of $14.5 million compared to gross margin of $12.5 million for the third quarter of 2013. The gross margin increase is attributable to the new logistics contract entered into with Associated Energy Services, LP at the time of our initial public offering, the recent transloader dropdown, and the escalation of prices on existing contracts.
For the midstream natural gas gathering and processing segment, gross margin was $10.2 million for the third quarter of 2014. This compares to gathering and processing segment gross margin of $10.2 million for the third quarter of 2013.
For the crude oil logistics segment, gross margin was $4.2 million for the third quarter of 2014, compared to crude oil logistics segment gross margin of $2.3 million for the third quarter of 2013. The increase in crude oil logistics segment gross margin is primarily due to the recent transloader dropdown transaction that closed on August 1, 2014.
On October 16, 2014, the board of directors of Marlin's general partner declared a quarterly cash distribution of $0.365 per unit, or $1.46 per unit on an annualized basis, for the third quarter of 2014. This distribution represents an increase of 1.4% over the quarterly distribution of $0.360 per unit ($1.44 on an annualized basis) paid for the second quarter of 2014. The quarterly distribution will be paid on November 4, 2014 to unitholders of record as of October 30, 2014.