HOUSTON, Jan. 29, 2014 – Phillips 66 Partners LP (NYSE: PSXP) announces fourth-quarter earnings of $17.0 million, resulting in $0.24 per limited partner unit. Earnings before interest, income taxes, depreciation and amortization (EBITDA) was $18.8 million and distributable cash flow was $17.8 million.
From the closing of its initial public offering (IPO) on July 26, 2013, through Dec. 31, 2013, the partnership's earnings were $28.9 million, resulting in $0.40 per limited partner unit. During this period, EBITDA was $32.0 million and distributable cash flow was $30.4 million.
"We are pleased with our operating and financial performance in our first full quarter,” said Phillips 66 Partners Chairman and CEO Greg Garland. “Consistent with our commitment to create value for unitholders, we recently increased our quarterly cash distribution by nearly 6 percent and are actively pursuing our initial acquisition in the first half of 2014."
Total revenues for the fourth quarter were $30.0 million, up $0.4 million from the third quarter. The increase primarily resulted from higher pipeline and terminal throughput volumes. Total costs of $12.9 million were up $0.8 million from the prior quarter, primarily driven by higher general and administrative expenses. These increased expenses reflect the higher costs of operating as a stand-alone publicly traded partnership, as well as due diligence costs associated with planned asset acquisitions.
On Jan. 22, 2014, the board of directors of our general partner declared a quarterly cash distribution of $0.2248 per unit, for a total distribution of $16.2 million. This distribution is 5.8 percent greater than the partnership's minimum quarterly distribution of $0.2125 per unit.
At Dec. 31, 2013, Phillips 66 Partners LP had $425.1 million in cash and cash equivalents, the majority of which is available to fund future acquisitions and expansion capital opportunities. The partnership also has an unused revolving credit facility of $250 million.
Later today, Phillips 66 Partners President Tim Taylor, Vice President and Chief Financial Officer Greg Maxwell, and Vice President and Chief Operating Officer Tom Liberti will host a webcast at 3 p.m. EST to discuss the partnership’s fourth-quarter performance. To listen to the conference call and view related presentation materials, go to www.phillips66partners.com/events. For detailed supplemental information, go to www.phillips66partners.com/reports.
On April 10, 2014, Phillips 66 Partners will participate in the Phillips 66 analyst meeting in New York. The meeting will be available via webcast. Additional details will be provided in a news release prior to the event.
About Phillips 66 Partners
Phillips 66 Partners is a growth-oriented master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and natural gas liquids pipelines and terminals and other transportation and midstream assets. Headquartered in Houston, the partnership’s assets include the Clifton Ridge crude oil pipeline, terminal and storage system in Louisiana; the Sweeny to Pasadena refined petroleum product pipeline, terminal and storage system in Texas; and the Hartford Connector refined petroleum product pipeline, terminal and storage system in Illinois. For more information, visit www.phillips66partners.com.
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Rich Johnson (media)
William Steen (investors)
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This news release includes forward-looking statements. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “intends,” “objectives,” “projects,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Phillips 66 Partners’ operations are based on management’s expectations, estimates and projections about the partnership, its interests and the energy industry in general on the date this news release was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include the continued ability of Phillips 66 to satisfy its obligations under our commercial and other agreements; the volume of crude oil and refined petroleum products we transport; the tariff rates with respect to volumes that we transport through our regulated assets, which rates are subject to review and possible adjustment by federal and state regulators; fluctuations in the prices for crude oil and refined petroleum products; liabilities associated with the risks and operational hazards inherent in transporting, terminaling and storing crude oil and refined petroleum products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; and other economic, business, competitive and/or regulatory factors affecting Phillips 66 Partners’ businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 Partners is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Information -- This news release includes the terms EBITDA and distributable cash flow. These are non-GAAP financial measures. EBITDA and distributable cash flow are included to help facilitate comparisons of operating performance of the partnership with other companies in our industry, as well as help facilitate an assessment of our assets’ ability to generate sufficient cash flow to make distributions to our partners. We believe that the presentation of EBITDA and distributable cash flow provides useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to EBITDA and distributable cash flow are net income and net cash provided by operating activities. EBITDA and distributable cash flow should not be considered as alternatives to GAAP net income or net cash provided by operating activities. EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. EBITDA and distributable cash flow should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because EBITDA and distributable cash flow may be defined differently by other companies in our industry, our definitions of EBITDA and distributable cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
References in the release to earnings refer to net income.