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JP Energy Partners Touts 1Q Results; Guidance on Track
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JP Energy Partners LP announced first quarter 2015 financial and operating results.
JP Energy reported Adjusted EBITDA of $15.2 million for the first quarter of 2015, compared to $8.5 million for the first quarter of 2014 and reported net income of $0.7 million for the first quarter of 2015, compared to a net loss of $8.6 million for the first quarter of 2014. Distributable Cash Flow was $13.3 million for the first quarter of 2015, resulting in a distribution coverage ratio for the quarter of 1.11x.
J. Patrick Barley, Executive Chairman and Chief Executive Officer of JP Energy, commented: "We had a great first quarter and we are on track to meet our full year guidance. Our first quarter performance demonstrated the diversity of our operating platform as our NGL business benefited from the lower commodity price environment, and even though rig counts fell significantly across all of the major shale plays due to lower crude oil prices, we still experienced increased volumes through our crude oil gathering platform. In addition, we also announced three expansions in the first four months of this year; two organic opportunities to expand and improve our Silver Dollar pipeline and an accretive acquisition in the NGL segment. We will continue to execute our business strategy and we look forward to building on the success of the first quarter."
Review of Segment Performance
NGL Distribution and Sales – Adjusted EBITDA for the NGL Distribution and Sales segment was $12.1 million for the first quarter of 2015, compared to $5.3 million for the first quarter of 2014. The increase was primarily due to a $6.9 million increase in adjusted gross margin as a result of an increase in sales volumes from the expansion of our customer base as well as an increase in the average sales margin of NGL and refined products from more favorable market conditions.
Crude Oil Pipelines and Storage – Adjusted EBITDA for the Crude Oil Pipelines and Storage segment was $5.5 million for the first quarter of 2015, compared to $5.0 million for the first quarter of 2014. The increase was primarily due to a $0.6 million increase in adjusted gross margin as a result of significantly increased volumes from the expansion of the Silver Dollar Pipeline System in the fourth quarter of 2014.
Crude Oil Supply and Logistics – Adjusted EBITDA for the Crude Oil Supply and Logistics segment was $2.0 million for the first quarter of 2015, compared to $0.7 million for the first quarter of 2014. The increase was primarily due to a $1.9 million increase in adjusted gross margin in the Permian Basin related to the expansion of the Silver Dollar Pipeline System in the fourth quarter of 2014. This was partially offset by higher operating expenses and lower margin per barrel due to the competitive environment.
Refined Products Terminals and Storage – Adjusted EBITDA for the Refined Products Terminals and Storage segment was $2.8 million for the first quarter of 2015, compared to $4.9 million for the first quarter of 2014. The decrease was primarily due to a $2.2 million decrease in adjusted gross margin from lower volumes and realized prices for refined products sold.
Cash Distributions
On April 28, 2015, JP Energy announced that it would pay on May 14, 2015, to unitholders of record on May 7, 2015, a cash distribution of $0.3250 per common and subordinated unit for the three month period ended March 31, 2015.