Western Refining Logistics, LP (NYSE:WNRL), reported fourth quarter
2016 net income attributable to limited partners of
$20.8 million, or $0.31 per common limited partner unit, which
compares to $14.8 million and $0.30 respectively in the fourth
quarter 2015. Fourth quarter 2016 EBITDA was $36.8 million and
distributable cash flow was $27.7 million; this compares to
$27.7 million and $20.8 million respectively for the
fourth quarter 2015.
"We are proud of the success we achieved in
2016. We had a number of organic growth projects in the
Delaware Basin and Four Corners area that are generating cash flow
and we completed the acquisition of the St. Paul Park logistics
assets in the Upper Midwest," said Jeff Stevens, President and
Chief Executive Officer of WNRL's general partner. "Crude oil
production estimates in the Permian Basin are increasing, which
should provide additional opportunities to grow throughput on our
system in 2017.”
On January 31, 2017, the board of directors
declared a quarterly cash distribution for the fourth quarter 2016
of $0.4375 per unit, or $1.75 per unit on an annualized basis. This
distribution represents a 3.6% increase over the third quarter
distribution of $0.4225 per unit, and an 11.5% increase over the
fourth quarter 2015 distribution.
Stevens continued, “With the organic projects we
have completed in 2016 and with several nearing completion, between
Western Refining (NYSE: WNR) and WNRL, we now have an integrated
crude oil logistics system from the Four Corners to Wink,
Texas. This system, which includes pipelines, crude oil
terminals and storage tanks for segregating and blending crude oil,
is ideal for supplying WNR's refineries and for gathering and
marketing crude oil for third parties. We are excited about
the potential for further development of our logistics presence in
the Permian and Williston Basins.”
Conference Call Information
On Tuesday, February 28, 2017, at 3:00 p.m.
ET, WNRL will hold a webcast and conference call to discuss the
reported results and provide an update on partnership operations.
The call will be webcast and can be accessed at Western Refining
Logistics' website, www.wnrl.com. The call can also be heard by
dialing (844) 831-3028 or (315) 625-6887, pass code: 49159984. The
audio replay will be available two hours after the end of the call
through March 7, 2017 by dialing (855) 859-2056 or (404) 537-3406,
pass code: 49159984.
About Western Refining Logistics,
LP
Western Refining Logistics, LP is principally a
fee-based, growth-oriented master limited partnership formed by
Western Refining, Inc. (NYSE:WNR) to own, operate, develop and
acquire terminals, storage tanks, pipelines and other logistics
assets related to the terminalling, transportation and storage of
crude oil and refined products. Headquartered in El Paso, Texas,
Western Refining Logistics, LP's assets include 705 miles of
pipelines, approximately 12.4 million barrels of active
storage capacity, distribution of wholesale petroleum products and
crude oil trucking.
More information about Western Refining Logistics
is available at www.wnrl.com.
Non-GAAP Financial Measures
In addition to our financial information presented
in accordance with U.S. generally accepted accounting principles
(GAAP), management utilizes non-GAAP measures to facilitate
comparisons of past performance. This press release and supporting
schedules include the non-GAAP measures Earnings Before Interest,
Taxes, Depreciation and Amortization (EBITDA) and Distributable
Cash Flow. We believe certain investors and financial analysts use
EBITDA and Distributable Cash Flow to evaluate WNRL’s financial
performance between periods and to compare WNRL's performance to
certain competitors. We believe certain investors and financial
analysts use Distributable Cash Flow to determine the amount of
cash available for distribution to our unitholders. These
additional financial measures are reconciled from the most directly
comparable measures as reported in accordance with GAAP and should
be viewed in addition to, and not in lieu of, financial information
that we report in accordance with GAAP.
Cautionary Statement on Forward-Looking
Statements
This press release contains forward-looking
statements. The forward-looking statements reflect WNRL’s current
expectation regarding future events, results or outcomes. The
forward-looking statements contained herein include statements
related to, among other things: the ability of WNRL's organic
growth projects to generate cash flow; increase of crude oil
production in the Permian Basin; growth of WNRL's system;
completion of WNRL's on-going organic growth project; the ability
of WNRL's assets to supply WNR's refineries; WNRL's ability to
gather and market crude oil for third parties; and further
development of WNRL's logistics presence in the Permian and
Williston Basins. These statements are subject to the general
risks inherent in WNRL’s business. These expectations may or may
not be realized and some of these expectations may be based upon
assumptions or judgments that prove to be incorrect. In addition,
WNRL’s business and operations involve numerous risks and
uncertainties, many of which are beyond its control, which could
result in WNRL’s expectations not being realized, or otherwise
materially affect WNRL’s financial condition, results of
operations, and cash flows. Additional information relating to the
uncertainties affecting WNRL’s business is contained in its filings
with the Securities and Exchange Commission to which you are
referred. The forward-looking statements are only as of the date
made. Except as required by law, WNRL does not undertake any
obligation to (and expressly disclaims any obligation to) update
any forward-looking statements to reflect events or circumstances
after the date such statements were made, or to reflect the
occurrence of unanticipated events.
Results of Operations
The following tables set forth WNRL's summary
historical financial and operating data for the periods indicated
below:
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
(In thousands, except per unit
data) |
Revenues: |
|
|
|
|
|
|
|
Fee
based: |
|
|
|
|
|
|
|
Affiliate |
$ |
65,482 |
|
|
$ |
52,381 |
|
|
$ |
223,124 |
|
|
$ |
203,435 |
|
Third-party |
730 |
|
|
682 |
|
|
2,911 |
|
|
2,771 |
|
Sales
based: |
|
|
|
|
|
|
|
Affiliate |
123,574 |
|
|
126,693 |
|
|
479,033 |
|
|
582,888 |
|
Third-party |
417,030 |
|
|
396,141 |
|
|
1,517,650 |
|
|
1,810,773 |
|
Total
revenues |
606,816 |
|
|
575,897 |
|
|
2,222,718 |
|
|
2,599,867 |
|
Operating costs
and expenses: |
|
|
|
|
|
|
|
Cost of
products sold: |
|
|
|
|
|
|
|
Affiliate |
121,124 |
|
|
124,177 |
|
|
468,935 |
|
|
573,264 |
|
Third-party |
399,607 |
|
|
376,676 |
|
|
1,447,178 |
|
|
1,734,873 |
|
Operating
and maintenance expenses |
43,833 |
|
|
44,611 |
|
|
174,936 |
|
|
175,767 |
|
Selling,
general and administrative expenses |
5,532 |
|
|
6,546 |
|
|
23,386 |
|
|
25,063 |
|
Gain and
impairments on disposal of assets, net |
(91 |
) |
|
(21 |
) |
|
(1,054 |
) |
|
(278 |
) |
Depreciation and amortization |
9,772 |
|
|
9,568 |
|
|
39,242 |
|
|
35,384 |
|
Total
operating costs and expenses |
579,777 |
|
|
561,557 |
|
|
2,152,623 |
|
|
2,544,073 |
|
Operating
income |
27,039 |
|
|
14,340 |
|
|
70,095 |
|
|
55,794 |
|
Other income
(expense): |
|
|
|
|
|
|
|
Interest
and debt expense |
(6,358 |
) |
|
(6,691 |
) |
|
(25,972 |
) |
|
(23,107 |
) |
Other
income (expense), net |
17 |
|
|
15 |
|
|
(70 |
) |
|
66 |
|
Net
income before income taxes |
20,698 |
|
|
7,664 |
|
|
44,053 |
|
|
32,753 |
|
Provision
for income taxes |
54 |
|
|
307 |
|
|
(706 |
) |
|
(47 |
) |
Net
income |
20,752 |
|
|
7,971 |
|
|
43,347 |
|
|
32,706 |
|
Less net
loss attributable to General Partner |
— |
|
|
(6,871 |
) |
|
(23,309 |
) |
|
(29,867 |
) |
Net
income attributable to limited partners |
$ |
20,752 |
|
|
$ |
14,842 |
|
|
$ |
66,656 |
|
|
$ |
62,573 |
|
|
|
|
|
|
|
|
|
Net income per limited
partner unit: |
|
|
|
|
|
|
|
Common -
basic |
$ |
0.31 |
|
|
$ |
0.30 |
|
|
$ |
1.16 |
|
|
$ |
1.31 |
|
Common -
diluted |
0.31 |
|
|
0.30 |
|
|
1.16 |
|
|
1.30 |
|
Subordinated - basic and diluted |
0.31 |
|
|
0.29 |
|
|
1.21 |
|
|
1.30 |
|
|
|
|
|
|
|
|
|
Weighted average
limited partner units outstanding: |
|
|
|
|
|
|
|
Common -
basic |
38,074 |
|
|
24,314 |
|
|
29,979 |
|
|
24,084 |
|
Common -
diluted |
38,095 |
|
|
24,321 |
|
|
29,994 |
|
|
24,099 |
|
Subordinated - basic and diluted |
22,811 |
|
|
22,811 |
|
|
22,811 |
|
|
22,811 |
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
(In thousands) |
Cash Flow
Data |
|
|
|
|
|
|
|
Net cash
provided by (used in): |
|
|
|
|
|
|
|
Operating
activities |
$ |
27,471 |
|
|
$ |
19,136 |
|
|
$ |
108,180 |
|
|
$ |
72,546 |
|
Investing
activities |
(1,392 |
) |
|
(13,864 |
) |
|
(25,005 |
) |
|
(67,119 |
) |
Financing
activities |
(27,969 |
) |
|
(32,039 |
) |
|
(113,128 |
) |
|
(15,120 |
) |
Capital
expenditures |
5,690 |
|
|
13,917 |
|
|
30,308 |
|
|
67,625 |
|
Other
Data |
|
|
|
|
|
|
|
EBITDA
(1) |
$ |
36,828 |
|
|
$ |
27,703 |
|
|
$ |
126,212 |
|
|
$ |
106,662 |
|
Distributable cash flow (1) |
27,737 |
|
|
20,774 |
|
|
100,059 |
|
|
78,631 |
|
Balance Sheet
Data (at end of period) |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
|
|
|
$ |
14,652 |
|
|
$ |
44,605 |
|
Property,
plant and equipment, net |
|
|
|
|
412,170 |
|
|
430,141 |
|
Total
assets |
|
|
|
|
580,854 |
|
|
610,222 |
|
Total
debt |
|
|
|
|
313,032 |
|
|
437,467 |
|
Total
liabilities |
|
|
|
|
482,530 |
|
|
570,632 |
|
Division
equity |
|
|
|
|
— |
|
|
108,013 |
|
Partners'
capital |
|
|
|
|
98,324 |
|
|
(68,423 |
) |
Total
liabilities, division equity and partners' capital |
|
|
|
|
580,854 |
|
|
610,222 |
|
(1) We define EBITDA as earnings before interest and debt
expense, provision for income taxes and depreciation and
amortization. We define Distributable Cash Flow as EBITDA plus the
change in deferred revenues, less interest accruals, income taxes
paid, maintenance capital expenditures and distributions declared
on our TexNew Mex units. The GAAP performance measure most directly
comparable to EBITDA is net income. The GAAP liquidity measure most
directly comparable to EBITDA and distributable cash flow is net
cash provided by operating activities. These non-GAAP financial
measures should not be considered alternatives to GAAP net income
or net cash provided by operating activities.
EBITDA has limitations as an analytical tool, and
you should not consider it in isolation, or as a substitute for
analysis of our results as reported under GAAP. Some of these
limitations are:
- EBITDA does not reflect our cash expenditures or future
requirements for capital expenditures or contractual
commitments;
- EBITDA does not reflect the interest expense or the cash
requirements necessary to service interest or principal payments on
our debt;
- EBITDA does not reflect changes in, or cash requirements for,
our working capital needs; and
- EBITDA, as we calculate it, may differ from the EBITDA
calculations of our affiliates or other companies in our industry,
thereby limiting its usefulness as a comparative measure.
EBITDA and Distributable Cash Flow are used as
supplemental financial measures by management and by external users
of our financial statements, such as investors and commercial
banks, to assess:
- our operating performance as compared to those of other
companies in the midstream energy industry, without regard to
financial methods, historical cost basis or capital structure;
- the ability of our assets to generate sufficient cash to make
distributions to our unitholders;
- our ability to incur and service debt and fund capital
expenditures; and
- the viability of acquisitions and other capital expenditure
projects and the returns on investment of various investment
opportunities.
Distributable Cash Flow is a standard used by the
investment community with respect to publicly traded partnerships
because the value of a partnership unit is, in part, measured by
its yield. Yield is based on the amount of cash distributions a
partnership can pay to a unitholder. Although distributable cash
flow is a liquidity measure, it is presented in this reconciliation
to net income as supplemental information.
We believe that the presentation of these non-GAAP
measures provides useful information to investors in assessing our
financial condition and results of operations. These non-GAAP
measures should not be considered as alternatives to net income or
any other measure of financial performance presented in accordance
with GAAP. EBITDA excludes some, but not all, items that affect net
income attributable to limited partners. These non-GAAP measures
may vary from those of other companies. As a result, EBITDA and
Distributable Cash Flow as presented herein may not be comparable
to similarly titled measures of other companies.
The calculation of EBITDA and Distributable Cash
Flow includes the results of operations for the period subsequent
to the Offering, the results of operations for the wholesale
segment for the period subsequent to the Wholesale Acquisition, the
results of the TexNew Mex Pipeline System subsequent to the TexNew
Mex Pipeline Acquisition and the results of the St. Paul Park
Logistics Assets subsequent to the St. Paul Park Logistics
Transaction.
The following table reconciles net income
attributable to limited partners to EBITDA and Distributable Cash
Flow for the periods presented:
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
(In thousands) |
Net income attributable
to limited partners |
$ |
20,752 |
|
|
$ |
14,842 |
|
|
$ |
66,656 |
|
|
$ |
62,573 |
|
Interest
and debt expense |
6,358 |
|
|
6,691 |
|
|
25,972 |
|
|
23,107 |
|
Provision
for income taxes |
(54 |
) |
|
(307 |
) |
|
706 |
|
|
47 |
|
Depreciation and amortization |
9,772 |
|
|
6,477 |
|
|
32,878 |
|
|
20,935 |
|
EBITDA |
36,828 |
|
|
27,703 |
|
|
126,212 |
|
|
106,662 |
|
|
|
|
|
|
|
|
|
Change in
deferred revenues |
864 |
|
|
1,122 |
|
|
9,002 |
|
|
3,351 |
|
Interest
accruals |
(6,154 |
) |
|
(6,345 |
) |
|
(25,312 |
) |
|
(21,836 |
) |
Income
taxes paid |
(171 |
) |
|
281 |
|
|
(415 |
) |
|
(456 |
) |
Maintenance capital expenditures |
(3,630 |
) |
|
(1,677 |
) |
|
(9,428 |
) |
|
(9,562 |
) |
Distributions on TexNew Mex Units |
— |
|
|
(310 |
) |
|
— |
|
|
(310 |
) |
Proceeds
from asset sale to affiliate |
— |
|
|
— |
|
|
— |
|
|
782 |
|
Distributable cash
flow |
$ |
27,737 |
|
|
$ |
20,774 |
|
|
$ |
100,059 |
|
|
$ |
78,631 |
|
Logistics |
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
(In thousands, except key operating
statistics) |
Revenues: |
|
|
|
|
|
|
|
Fee based
revenues: |
|
|
|
|
|
|
|
Affiliate |
$ |
52,312 |
|
|
$ |
43,813 |
|
|
$ |
178,600 |
|
|
$ |
161,536 |
|
Third-party |
730 |
|
|
682 |
|
|
2,911 |
|
|
2,771 |
|
Total
revenues |
53,042 |
|
|
44,495 |
|
|
181,511 |
|
|
164,307 |
|
Operating costs
and expenses: |
|
|
|
|
|
|
|
Operating
and maintenance expenses |
25,596 |
|
|
25,809 |
|
|
101,328 |
|
|
99,430 |
|
General
and administrative expenses |
627 |
|
|
785 |
|
|
2,627 |
|
|
2,953 |
|
Loss
(gain) and impairments on disposal of assets, net |
— |
|
|
22 |
|
|
(17 |
) |
|
146 |
|
Depreciation and amortization |
8,627 |
|
|
8,412 |
|
|
33,710 |
|
|
30,898 |
|
Total
operating costs and expenses |
34,850 |
|
|
35,028 |
|
|
137,648 |
|
|
133,427 |
|
Operating
income |
$ |
18,192 |
|
|
$ |
9,467 |
|
|
$ |
43,863 |
|
|
$ |
30,880 |
|
Key Operating
Statistics |
|
|
|
|
|
|
|
Pipeline and gathering
(bpd) (1): |
|
|
|
|
|
|
|
Mainline
movements: |
|
|
|
|
|
|
|
Permian/Delaware Basin system |
52,090 |
|
|
52,068 |
|
|
51,805 |
|
|
47,368 |
|
TexNew
Mex system |
7,790 |
|
|
14,566 |
|
|
9,543 |
|
|
12,302 |
|
Four
Corners system |
49,278 |
|
|
60,115 |
|
|
53,204 |
|
|
56,079 |
|
Gathering
(truck offloading) (bpd): |
|
|
|
|
|
|
|
Permian/Delaware Basin system |
16,809 |
|
|
21,865 |
|
|
17,662 |
|
|
23,617 |
|
Four
Corners system |
8,417 |
|
|
13,589 |
|
|
10,464 |
|
|
13,438 |
|
Pipeline
Gathering and Injection system: |
|
|
|
|
|
|
|
Permian/Delaware Basin system |
14,706 |
|
|
7,367 |
|
|
12,295 |
|
|
5,861 |
|
TexNew
Mex system |
3,379 |
|
|
— |
|
|
1,354 |
|
|
— |
|
Four
Corners system |
26,788 |
|
|
26,360 |
|
|
25,052 |
|
|
24,490 |
|
Tank
storage capacity (bbls) (2) |
959,087 |
|
|
783,879 |
|
|
898,307 |
|
|
669,356 |
|
Terminalling,
transportation and storage: |
|
|
|
|
|
|
|
Shipments
into and out of storage (bpd) (includes asphalt) |
568,288 |
|
|
377,698 |
|
|
441,865 |
|
|
391,842 |
|
Terminal
storage capacity (bbls) (2) |
11,376,805 |
|
|
7,397,408 |
|
|
8,564,061 |
|
|
7,447,391 |
|
(1) Some barrels of crude oil in route to Western's Gallup
refinery and Permian/Delaware Basin are transported on more than
one of our mainlines. Mainline movements for the Four Corners and
Delaware Basin systems include each barrel transported on each
mainline. During the second quarter of 2015, we began shipping
crude oil from the Four Corners system, through the TexNew Mex
Pipeline System, to the Permian/Delaware system.(2) Storage shell
capacities represent weighted-average capacities for the periods
indicated.
Wholesale |
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
(In thousands, except key operating
statistics) |
Revenues: |
|
|
|
|
|
|
|
Fee based
revenues (1): |
|
|
|
|
|
|
|
Affiliate |
$ |
13,170 |
|
|
$ |
8,568 |
|
|
$ |
44,524 |
|
|
$ |
41,899 |
|
Sales
based revenues (1): |
|
|
|
|
|
|
|
Affiliate |
123,574 |
|
|
126,693 |
|
|
479,033 |
|
|
582,888 |
|
Third
party |
417,030 |
|
|
396,141 |
|
|
1,517,650 |
|
|
1,810,773 |
|
Total
revenues |
553,774 |
|
|
531,402 |
|
|
2,041,207 |
|
|
2,435,560 |
|
Operating costs
and expenses: |
|
|
|
|
|
|
|
Cost of
products sold: |
|
|
|
|
|
|
|
Affiliate |
121,124 |
|
|
124,177 |
|
|
468,935 |
|
|
573,264 |
|
Third-party |
399,607 |
|
|
376,676 |
|
|
1,447,178 |
|
|
1,734,873 |
|
Operating
and maintenance expenses |
18,237 |
|
|
18,802 |
|
|
73,608 |
|
|
76,337 |
|
Selling,
general and administrative expenses |
1,484 |
|
|
2,150 |
|
|
7,607 |
|
|
8,865 |
|
Gain and
impairments on disposal of assets, net |
(91 |
) |
|
(43 |
) |
|
(1,037 |
) |
|
(424 |
) |
Depreciation and amortization |
1,145 |
|
|
1,156 |
|
|
5,532 |
|
|
4,486 |
|
Total
operating costs and expenses |
541,506 |
|
|
522,918 |
|
|
2,001,823 |
|
|
2,397,401 |
|
Operating
income |
$ |
12,268 |
|
|
$ |
8,484 |
|
|
$ |
39,384 |
|
|
$ |
38,159 |
|
Key Operating
Statistics: |
|
|
|
|
|
|
|
Fuel
gallons sold (in thousands) |
317,998 |
|
|
318,186 |
|
|
1,258,027 |
|
|
1,237,994 |
|
Fuel
gallons sold to retail (included in fuel gallons sold, above) (in
thousands) |
81,521 |
|
|
78,780 |
|
|
332,214 |
|
|
314,604 |
|
Fuel
margin per gallon (2) |
$ |
0.030 |
|
|
$ |
0.026 |
|
|
$ |
0.028 |
|
|
$ |
0.030 |
|
Lubricant
gallons sold (in thousands) |
1,385 |
|
|
2,728 |
|
|
6,787 |
|
|
11,697 |
|
Lubricant
margin per gallon (3) |
$ |
0.83 |
|
|
$ |
0.77 |
|
|
$ |
0.85 |
|
|
$ |
0.73 |
|
Asphalt
trucking volume (bpd) |
5,518 |
|
|
— |
|
|
4,727 |
|
|
— |
|
Crude oil
trucking volume (bpd) |
40,586 |
|
|
39,675 |
|
|
38,582 |
|
|
45,337 |
|
Average
crude oil revenue per barrel |
$ |
2.12 |
|
|
$ |
2.35 |
|
|
$ |
2.16 |
|
|
$ |
2.53 |
|
(1) All wholesale fee based revenues are generated
through fees charged to Western's refining segment for truck
transportation and delivery of crude oil and asphalt. Affiliate and
third-party sales based revenues result from sales of refined
products to Western and third-party customers at a delivered price
that includes charges for product transportation.(2) Fuel margin
per gallon is a measurement calculated by dividing the difference
between fuel sales, net of transportation charges, and cost of fuel
sales for our wholesale segment by the number of gallons sold. Fuel
margin per gallon is a measure frequently used in the petroleum
products wholesale industry to measure operating results related to
fuel sales.(3) Lubricant margin per gallon is a measurement
calculated by dividing the difference between lubricant sales, net
of transportation charges, and lubricant cost of products sold by
the number of gallons sold. Lubricant margin is a measure
frequently used in the petroleum products wholesale industry to
measure operating results related to lubricant sales.
Investor and Analyst Contact:
Michelle Clemente
(602) 286-1533
Jeffrey S. Beyersdorfer
(602) 286-1530
Media Contact:
Gary W. Hanson
(602) 286-1777
Grafico Azioni Western Refining (NYSE:WNR)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Western Refining (NYSE:WNR)
Storico
Da Giu 2023 a Giu 2024