News Release
NuStar Energy L.P. Reports Strong Fourth Quarter and Full-Year 2022 Earnings Results
Highest Fourth Quarter Net Income and Adjusted EBITDA in Company History
Permian Crude System Volumes Hit Record-Breaking Average of 584,000 Barrels Per Day/13 Percent Above 4Q 2021
Operations Performing Well Across all Systems
Fuels Marketing Segment Up Almost
Optimization Initiative a Huge Success
Encouraging 2023 Full-Year Outlook
“Given how 2022’s historic inflation and volatility made for a bumpy ride around the globe and across financial markets, I am particularly proud of our results last year, which once again demonstrate the stability and strength of NuStar’s business,” said
In addition to the insurance proceeds, Barron noted that both 2022 and 2021 included non-cash charges that impacted full-year net income, making an apples-to-apples comparison difficult. For example, for full-year 2022,
“However, excluding the non-cash charges and insurance proceeds, as well as the EPU impact from the repurchase of a portion of the Series D preferred units in the fourth quarter of 2022, our full-year 2022 adjusted net income was
Barron continued, “Our adjusted EBITDA was
“We are proud to have generated higher adjusted EBITDA for 2022 through a combination of revenue improvement and expense optimization, which helped mitigate some of the impact of 2022’s historic inflation.”
Adjusted distributable cash flow (DCF) was
Adjusted DCF was
Operations Performing Well Across all Systems
“Our Pipeline Segment generated
NuStar’s Permian Crude System volumes hit another high in the fourth quarter of 2022 with a record-breaking average of 584,000 barrels per day (BPD), up 13 percent over fourth quarter of 2021 volumes.
He also noted that NuStar’s Mid-Continent refined product systems once again delivered solid, dependable revenue contribution in the fourth quarter of 2022.
“In South Texas, we are pleased that our Corpus Christi Crude System throughputs averaged over 368,000 BPD in the fourth quarter of 2022, which is above our minimum volume commitments for the system and eight percent higher than volumes in the third quarter of 2022. We are also encouraged by the continued improvement we saw in January on that system, as our average volumes rose to almost 400,000 BPD last month.”
Barron also noted that operating income and EBITDA in NuStar’s Fuels Marketing Segment were
“For full-year 2022, our Fuels Marketing Segment generated near-record operating income and EBITDA of
“In addition, our
Balance Sheet Continues to Improve
“We ended the fourth quarter of 2022 with a debt-to-EBITDA ratio of 3.98 times,” said Shoaf. “Our total debt balance was
“In November, we were able to repurchase about one-third of our Series D preferred units while keeping our debt-to-EBITDA ratio under 4 times for year-end 2022. As we mentioned last quarter, we are now positioned to accelerate our timeframe for addressing the Series D preferred units by completing the redemption in 2024, which is several years ahead of our previously scheduled timeframe. This redemption is another important step in our ongoing optimization and will meaningfully increase our cash flow over the next few years.”
Encouraging 2023 Outlook
Shoaf also gave full-year guidance for net income and EBITDA, as well as strategic capital and reliability capital for 2023.
“We expect to generate full-year 2023 net income in the range of
He also noted that
“We expect to allocate approximately
Optimization Initiative a Huge Success
Barron closed by mentioning how integral NuStar’s optimization initiative was to the company’s solid results and in facilitating an important first step to improve its capital structure in 2022.
“By systematically scrutinizing every dollar of spending, we have been able to significantly increase our cash flow with systematic changes that will continue to reap benefits in 2023 and beyond,” said Barron. “And by investing that increased cash flow in our growth footprint, we are already on the path to compounding those benefits, with the EBITDA growth we expect from organic capital projects on our Permian System and in our West Coast Renewables Network, as well as the projects we hope to announce later this year across our Ammonia System.
“We plan to continue to optimize our business and build our financial strength and unitholder value, while we continue to safely and reliably store and transport the essential energy that fuels our lives,” Barron concluded.
Conference Call Details
A conference call with management is scheduled for
The conference call may also be accessed through the “Investors” section of NuStar Energy L.P.’s website at https://investor.nustarenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes, and the related conference call will include, forward-looking statements regarding future events and expectations, such as NuStar’s future performance, plans and expenditures. All forward-looking statements are based on NuStar’s beliefs as well as assumptions made by and information currently available to
Consolidated Financial Information (Unaudited, Thousands of Dollars, Except Unit, Per Unit and Ratio Data) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Statement of Income Data: |
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Service revenues |
$ |
299,497 |
|
|
$ |
288,266 |
|
|
$ |
1,120,249 |
|
|
$ |
1,157,410 |
|
Product sales |
|
130,463 |
|
|
|
129,150 |
|
|
|
562,974 |
|
|
|
461,090 |
|
Total revenues |
|
429,960 |
|
|
|
417,416 |
|
|
|
1,683,223 |
|
|
|
1,618,500 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Costs associated with service revenues: |
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
92,353 |
|
|
|
100,155 |
|
|
|
364,989 |
|
|
|
388,078 |
|
Depreciation and amortization expense |
|
63,195 |
|
|
|
63,080 |
|
|
|
251,878 |
|
|
|
266,588 |
|
Total costs associated with service revenues |
|
155,548 |
|
|
|
163,235 |
|
|
|
616,867 |
|
|
|
654,666 |
|
Costs associated with product sales |
|
108,730 |
|
|
|
116,612 |
|
|
|
486,947 |
|
|
|
417,413 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
34,060 |
|
Other impairment losses |
|
— |
|
|
|
— |
|
|
|
46,122 |
|
|
|
154,908 |
|
General and administrative expenses |
|
34,460 |
|
|
|
33,873 |
|
|
|
117,116 |
|
|
|
113,207 |
|
Other depreciation and amortization expense |
|
1,776 |
|
|
|
1,951 |
|
|
|
7,358 |
|
|
|
7,792 |
|
Total costs and expenses |
|
300,514 |
|
|
|
315,671 |
|
|
|
1,274,410 |
|
|
|
1,382,046 |
|
Operating income |
|
129,446 |
|
|
|
101,745 |
|
|
|
408,813 |
|
|
|
236,454 |
|
Interest expense, net |
|
(55,956 |
) |
|
|
(51,774 |
) |
|
|
(209,009 |
) |
|
|
(213,985 |
) |
Other income, net |
|
19,024 |
|
|
|
7,900 |
|
|
|
26,182 |
|
|
|
19,644 |
|
Income before income tax expense |
|
92,514 |
|
|
|
57,871 |
|
|
|
225,986 |
|
|
|
42,113 |
|
Income tax expense |
|
911 |
|
|
|
353 |
|
|
|
3,239 |
|
|
|
3,888 |
|
Net income |
$ |
91,603 |
|
|
$ |
57,518 |
|
|
$ |
222,747 |
|
|
$ |
38,225 |
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net income (loss) per common unit |
$ |
0.18 |
|
|
$ |
0.19 |
|
|
$ |
0.36 |
|
|
$ |
(0.99 |
) |
Basic and diluted weighted-average common units outstanding |
|
110,566,272 |
|
|
|
109,771,943 |
|
|
|
110,341,206 |
|
|
|
109,585,635 |
|
Other Data (Note 1): |
|
|
|
|
|
|
|
||||
Adjusted net income |
$ |
75,237 |
|
$ |
52,030 |
|
$ |
249,795 |
|
$ |
212,333 |
Adjusted net income per common unit |
$ |
0.34 |
|
$ |
0.14 |
|
$ |
0.92 |
|
$ |
0.60 |
EBITDA |
$ |
213,441 |
|
$ |
174,676 |
|
$ |
694,231 |
|
$ |
530,478 |
Adjusted EBITDA |
$ |
197,075 |
|
$ |
169,188 |
|
$ |
722,423 |
|
$ |
704,586 |
DCF |
$ |
69,937 |
|
$ |
63,047 |
|
$ |
337,482 |
|
$ |
333,034 |
Adjusted DCF |
$ |
89,216 |
|
$ |
63,047 |
|
$ |
356,761 |
|
$ |
333,034 |
Distribution coverage ratio |
1.58x |
|
1.43x |
|
1.91x |
|
1.90x |
||||
Adjusted distribution coverage ratio |
2.01x |
|
1.43x |
|
2.02x |
|
1.90x |
|
For the Four Quarters Ended |
||
|
2022 |
|
2021 |
Consolidated Debt Coverage Ratio |
3.98x |
|
3.99x |
Consolidated Financial Information - Continued (Unaudited, Thousands of Dollars, Except Barrel Data) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Pipeline: |
|
|
|
|
|
|
|
||||||||
Crude oil pipelines throughput (barrels/day) |
|
1,410,966 |
|
|
|
1,401,498 |
|
|
|
1,319,360 |
|
|
|
1,281,568 |
|
Refined products and ammonia pipelines throughput (barrels/day) |
|
611,011 |
|
|
|
624,209 |
|
|
|
579,240 |
|
|
|
585,189 |
|
Total throughput (barrels/day) |
|
2,021,977 |
|
|
|
2,025,707 |
|
|
|
1,898,600 |
|
|
|
1,866,757 |
|
|
|
|
|
|
|
|
|
||||||||
Throughput and other revenues |
$ |
229,935 |
|
|
$ |
203,897 |
|
|
$ |
828,191 |
|
|
$ |
762,238 |
|
Operating expenses |
|
53,609 |
|
|
|
54,719 |
|
|
|
210,719 |
|
|
|
202,481 |
|
Depreciation and amortization expense |
|
44,726 |
|
|
|
43,798 |
|
|
|
178,802 |
|
|
|
179,088 |
|
Other impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
59,197 |
|
Segment operating income |
$ |
131,600 |
|
|
$ |
105,380 |
|
|
$ |
438,670 |
|
|
$ |
321,472 |
|
Storage: |
|
|
|
|
|
|
|
||||||||
Throughput (barrels/day) (a) |
|
512,504 |
|
|
|
557,448 |
|
|
|
480,129 |
|
|
|
516,094 |
|
|
|
|
|
|
|
|
|
||||||||
Throughput terminal revenues |
$ |
26,288 |
|
|
$ |
31,623 |
|
|
$ |
110,591 |
|
|
$ |
122,331 |
|
Storage terminal revenues |
|
53,165 |
|
|
|
60,081 |
|
|
|
223,958 |
|
|
|
305,337 |
|
Total revenues |
|
79,453 |
|
|
|
91,704 |
|
|
|
334,549 |
|
|
|
427,668 |
|
Operating expenses |
|
38,744 |
|
|
|
45,436 |
|
|
|
154,270 |
|
|
|
185,597 |
|
Depreciation and amortization expense |
|
18,469 |
|
|
|
19,282 |
|
|
|
73,076 |
|
|
|
87,500 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
34,060 |
|
Other impairment losses |
|
— |
|
|
|
— |
|
|
|
46,122 |
|
|
|
95,711 |
|
Segment operating income |
$ |
22,240 |
|
|
$ |
26,986 |
|
|
$ |
61,081 |
|
|
$ |
24,800 |
|
Fuels Marketing: |
|
|
|
|
|
|
|
||||||||
Product sales |
$ |
120,574 |
|
|
$ |
121,818 |
|
|
$ |
520,486 |
|
|
$ |
428,608 |
|
Cost of goods |
|
107,850 |
|
|
|
116,056 |
|
|
|
484,477 |
|
|
|
417,000 |
|
Gross margin |
|
12,724 |
|
|
|
5,762 |
|
|
|
36,009 |
|
|
|
11,608 |
|
Operating expenses |
|
882 |
|
|
|
559 |
|
|
|
2,473 |
|
|
|
427 |
|
Segment operating income |
$ |
11,842 |
|
|
$ |
5,203 |
|
|
$ |
33,536 |
|
|
$ |
11,181 |
|
Consolidation and Intersegment Eliminations: |
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
(2 |
) |
|
$ |
(3 |
) |
|
$ |
(3 |
) |
|
$ |
(14 |
) |
Cost of goods |
|
(2 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(14 |
) |
Total |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Consolidated Information: |
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
429,960 |
|
|
$ |
417,416 |
|
|
$ |
1,683,223 |
|
|
$ |
1,618,500 |
|
Costs associated with service revenues: |
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
92,353 |
|
|
|
100,155 |
|
|
|
364,989 |
|
|
|
388,078 |
|
Depreciation and amortization expense |
|
63,195 |
|
|
|
63,080 |
|
|
|
251,878 |
|
|
|
266,588 |
|
Total costs associated with service revenues |
|
155,548 |
|
|
|
163,235 |
|
|
|
616,867 |
|
|
|
654,666 |
|
Costs associated with product sales |
|
108,730 |
|
|
|
116,612 |
|
|
|
486,947 |
|
|
|
417,413 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
34,060 |
|
Other impairment losses |
|
— |
|
|
|
— |
|
|
|
46,122 |
|
|
|
154,908 |
|
Segment operating income |
|
165,682 |
|
|
|
137,569 |
|
|
|
533,287 |
|
|
|
357,453 |
|
General and administrative expenses |
|
34,460 |
|
|
|
33,873 |
|
|
|
117,116 |
|
|
|
113,207 |
|
Other depreciation and amortization expense |
|
1,776 |
|
|
|
1,951 |
|
|
|
7,358 |
|
|
|
7,792 |
|
Consolidated operating income |
$ |
129,446 |
|
|
$ |
101,745 |
|
|
$ |
408,813 |
|
|
$ |
236,454 |
|
(a) |
Prior period throughputs for our Corpus |
|
Reconciliation of Non-GAAP Financial Information |
(Unaudited, Thousands of Dollars, Except Ratio Data) |
Note 1:
Our board of directors and management use EBITDA and/or DCF when assessing the following: (i) the performance of our assets, (ii) the viability of potential projects, (iii) our ability to fund distributions, (iv) our ability to fund capital expenditures and (v) our ability to service debt. In addition, our board of directors uses EBITDA, DCF and a distribution coverage ratio, which is calculated based on DCF, as some of the factors in its compensation determinations. DCF is a financial indicator used by the master limited partnership (MLP) investment community to compare partnership performance. DCF is used by the MLP investment community, in part, because the value of a partnership unit is partially based on its yield, and its yield is based on the cash distributions a partnership can pay its unitholders.
None of these financial measures are presented as an alternative to net income. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with GAAP.
The following is a reconciliation of net income to EBITDA, DCF and distribution coverage ratio.
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net income |
$ |
91,603 |
|
|
$ |
57,518 |
|
|
$ |
222,747 |
|
|
$ |
38,225 |
|
Interest expense, net |
|
55,956 |
|
|
|
51,774 |
|
|
|
209,009 |
|
|
|
213,985 |
|
Income tax expense |
|
911 |
|
|
|
353 |
|
|
|
3,239 |
|
|
|
3,888 |
|
Depreciation and amortization expense |
|
64,971 |
|
|
|
65,031 |
|
|
|
259,236 |
|
|
|
274,380 |
|
EBITDA |
|
213,441 |
|
|
|
174,676 |
|
|
|
694,231 |
|
|
|
530,478 |
|
Interest expense, net |
|
(55,956 |
) |
|
|
(51,774 |
) |
|
|
(209,009 |
) |
|
|
(213,985 |
) |
Reliability capital expenditures |
|
(8,118 |
) |
|
|
(12,028 |
) |
|
|
(32,775 |
) |
|
|
(40,266 |
) |
Income tax expense |
|
(911 |
) |
|
|
(353 |
) |
|
|
(3,239 |
) |
|
|
(3,888 |
) |
Long-term incentive equity awards (a) |
|
3,337 |
|
|
|
3,222 |
|
|
|
11,434 |
|
|
|
11,959 |
|
Preferred unit distributions |
|
(32,511 |
) |
|
|
(31,736 |
) |
|
|
(127,589 |
) |
|
|
(127,399 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
34,060 |
|
Other impairment losses |
|
— |
|
|
|
— |
|
|
|
46,122 |
|
|
|
154,908 |
|
Income tax benefit related to impairment loss |
|
— |
|
|
|
— |
|
|
|
(1,144 |
) |
|
|
— |
|
Premium on repurchase of Series D Cumulative Convertible Preferred Units |
|
(49,600 |
) |
|
|
— |
|
|
|
(49,600 |
) |
|
|
— |
|
Other items |
|
255 |
|
|
|
(18,960 |
) |
|
|
9,051 |
|
|
|
(12,833 |
) |
DCF |
$ |
69,937 |
|
|
$ |
63,047 |
|
|
$ |
337,482 |
|
|
$ |
333,034 |
|
|
|
|
|
|
|
|
|
||||||||
Distributions applicable to common limited partners |
$ |
44,328 |
|
|
$ |
44,008 |
|
|
$ |
176,746 |
|
|
$ |
175,470 |
|
Distribution coverage ratio (b) |
1.58x |
|
1.43x |
|
1.91x |
|
1.90x |
(a) |
We intend to satisfy the vestings of these equity-based awards with the issuance of our common units. As such, the expenses related to these awards are considered non-cash and added back to DCF. Certain awards include distribution equivalent rights (DERs). Payments made in connection with DERs are deducted from DCF. |
|
(b) |
Distribution coverage ratio is calculated by dividing DCF by distributions applicable to common limited partners. |
|
Reconciliation of Non-GAAP Financial Information - Continued |
(Unaudited, Thousands of Dollars, Except Ratio and Per Unit Data) |
The following is the reconciliation for the calculation of our Consolidated Debt Coverage Ratio, as defined in our revolving credit agreement (the Revolving Credit Agreement).
|
Year Ended
|
||||||
|
2022 |
|
2021 |
||||
Operating income |
$ |
408,813 |
|
|
$ |
236,454 |
|
Depreciation and amortization expense |
|
259,236 |
|
|
|
274,380 |
|
|
|
— |
|
|
|
34,060 |
|
Other impairment losses |
|
46,122 |
|
|
|
154,908 |
|
Amortization expense of equity-based awards |
|
13,781 |
|
|
|
14,209 |
|
Pro forma effects of dispositions (a) |
|
(1,760 |
) |
|
|
(22,710 |
) |
Other |
|
(3,607 |
) |
|
|
1,762 |
|
Consolidated EBITDA, as defined in the Revolving Credit Agreement |
$ |
722,585 |
|
|
$ |
693,063 |
|
|
|
|
|
||||
Long-term debt, less current portion of finance leases |
$ |
3,293,415 |
|
|
$ |
3,183,555 |
|
Finance leases (long-term) |
|
(51,127 |
) |
|
|
(52,930 |
) |
Net fair value adjustments, unamortized discounts and unamortized debt issuance costs |
|
33,252 |
|
|
|
38,315 |
|
|
|
(402,500 |
) |
|
|
(402,500 |
) |
Consolidated Debt, as defined in the Revolving Credit Agreement |
$ |
2,873,040 |
|
|
$ |
2,766,440 |
|
|
|
|
|
||||
Consolidated Debt Coverage Ratio (Consolidated Debt to Consolidated EBITDA) |
3.98x |
|
3.99x |
(a) |
These adjustments represent the pro forma effects of the dispositions of the Point Tupper terminal, which was sold in |
The following are reconciliations of net income / net income (loss) per common unit to adjusted net income / adjusted net income per common unit.
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
Net income / net income per common unit |
|
$ |
91,603 |
|
|
$ |
0.18 |
|
|
$ |
222,747 |
|
|
$ |
0.36 |
|
Gain from insurance recoveries |
|
|
(16,366 |
) |
|
|
(0.15 |
) |
|
|
(16,366 |
) |
|
|
(0.15 |
) |
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
46,122 |
|
|
|
0.42 |
|
Income tax benefit related to impairment loss |
|
|
— |
|
|
|
— |
|
|
|
(1,144 |
) |
|
|
(0.01 |
) |
Gain on sale |
|
|
— |
|
|
|
— |
|
|
|
(1,564 |
) |
|
|
(0.01 |
) |
Premium on repurchase of Series D Cumulative Convertible Preferred Units |
|
|
— |
|
|
|
0.31 |
|
|
|
— |
|
|
|
0.31 |
|
Adjusted net income / adjusted net income per common unit |
|
$ |
75,237 |
|
|
$ |
0.34 |
|
|
$ |
249,795 |
|
|
$ |
0.92 |
|
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
Net income / net income (loss) per common unit |
|
$ |
57,518 |
|
|
$ |
0.19 |
|
|
$ |
38,225 |
|
|
$ |
(0.99 |
) |
Gain from insurance recoveries |
|
|
(5,488 |
) |
|
|
(0.05 |
) |
|
|
(14,860 |
) |
|
|
(0.13 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
34,060 |
|
|
|
0.31 |
|
Other impairment losses |
|
|
— |
|
|
|
— |
|
|
|
154,908 |
|
|
|
1.41 |
|
Adjusted net income / adjusted net income per common unit |
|
$ |
52,030 |
|
|
$ |
0.14 |
|
|
$ |
212,333 |
|
|
$ |
0.60 |
|
|
Reconciliation of Non-GAAP Financial Information - Continued |
(Unaudited, Thousands of Dollars, Except Ratio Data) |
The following is a reconciliation of EBITDA to adjusted EBITDA.
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
EBITDA |
$ |
213,441 |
|
|
$ |
174,676 |
|
|
$ |
694,231 |
|
|
$ |
530,478 |
|
Gain from insurance recoveries |
|
(16,366 |
) |
|
|
(5,488 |
) |
|
|
(16,366 |
) |
|
|
(14,860 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
34,060 |
|
Other impairment losses |
|
— |
|
|
|
— |
|
|
|
46,122 |
|
|
|
154,908 |
|
Gain on sale |
|
— |
|
|
|
— |
|
|
|
(1,564 |
) |
|
|
— |
|
Adjusted EBITDA |
$ |
197,075 |
|
|
$ |
169,188 |
|
|
$ |
722,423 |
|
|
$ |
704,586 |
|
The following is a reconciliation of DCF to adjusted DCF and adjusted distribution coverage ratio.
|
Three Months Ended
|
|
Year Ended
|
||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||
DCF |
$ |
69,937 |
|
|
$ |
63,047 |
|
$ |
337,482 |
|
|
$ |
333,034 |
Gain from insurance recoveries |
|
(16,366 |
) |
|
|
— |
|
|
(16,366 |
) |
|
|
— |
Premium on repurchase of Series D Cumulative Convertible Preferred Units |
|
49,600 |
|
|
|
— |
|
|
49,600 |
|
|
|
— |
Other |
|
(13,955 |
) |
|
|
— |
|
|
(13,955 |
) |
|
|
— |
Adjusted DCF |
$ |
89,216 |
|
|
$ |
63,047 |
|
$ |
356,761 |
|
|
$ |
333,034 |
|
|
|
|
|
|
|
|
||||||
Distributions applicable to common limited partners |
$ |
44,328 |
|
|
$ |
44,008 |
|
$ |
176,746 |
|
|
$ |
175,470 |
Adjusted distribution coverage ratio (a) |
2.01x |
|
1.43x |
|
2.02x |
|
1.90x |
(a) |
Adjusted distribution coverage ratio is calculated by dividing adjusted DCF by distributions applicable to common limited partners. |
The following is a reconciliation of projected net income to EBITDA.
|
Projected for the Year Ended
|
|
Net income |
$ |
202,000 - 240,000 |
Interest expense, net |
235,000 - 245,000 |
|
Income tax expense |
3,000 - 5,000 |
|
Depreciation and amortization expense |
260,000 - 270,000 |
|
EBITDA |
$ |
700,000 - 760,000 |
|
Reconciliation of Non-GAAP Financial Information - Continued |
(Unaudited, Thousands of Dollars) |
The following are reconciliations for our reported segments of operating income to segment EBITDA and adjusted segment EBITDA.
|
Three Months Ended
|
|||||||
|
Pipeline |
|
Storage |
|
Fuels Marketing |
|||
Operating income |
$ |
131,600 |
|
$ |
22,240 |
|
$ |
11,842 |
Depreciation and amortization expense |
|
44,726 |
|
|
18,469 |
|
|
— |
Segment EBITDA |
$ |
176,326 |
|
$ |
40,709 |
|
$ |
11,842 |
|
|
|
|
|
|
|||
|
Three Months Ended
|
|||||||
|
Pipeline |
|
Storage |
|
Fuels Marketing |
|||
Operating income |
$ |
105,380 |
|
$ |
26,986 |
|
$ |
5,203 |
Depreciation and amortization expense |
|
43,798 |
|
|
19,282 |
|
|
— |
Segment EBITDA |
$ |
149,178 |
|
$ |
46,268 |
|
$ |
5,203 |
|
|
|
|
|
|
|||
|
Year Ended
|
|||||||
|
Pipeline |
|
Storage |
|
Fuels Marketing |
|||
Operating income |
$ |
438,670 |
|
$ |
61,081 |
|
$ |
33,536 |
Depreciation and amortization expense |
|
178,802 |
|
|
73,076 |
|
|
— |
Segment EBITDA |
|
617,472 |
|
|
134,157 |
|
|
33,536 |
Impairment loss |
|
— |
|
|
46,122 |
|
|
— |
Adjusted segment EBITDA |
$ |
617,472 |
|
$ |
180,279 |
|
$ |
33,536 |
|
|
|
|
|
|
|||
|
Year Ended
|
|||||||
|
Pipeline |
|
Storage |
|
Fuels Marketing |
|||
Operating income |
$ |
321,472 |
|
$ |
24,800 |
|
$ |
11,181 |
Depreciation and amortization expense |
|
179,088 |
|
|
87,500 |
|
|
— |
Segment EBITDA |
|
500,560 |
|
|
112,300 |
|
|
11,181 |
Impairment losses |
|
59,197 |
|
|
129,771 |
|
|
— |
Adjusted segment EBITDA |
$ |
559,757 |
|
$ |
242,071 |
|
$ |
11,181 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230131006184/en/
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