Andeavor Logistics LP Reports First-Quarter 2019 Results
- Reported first-quarter net earnings of
$157 million and EBITDA of$319 million , which provided 1.06x distribution coverage and resulted in 3.9x leverage - Terminalling and Transportation segment operating income of
$152 million and EBITDA of$191 million driven by drop downs and strong pipeline transportation volumes - Gathering and Processing segment operating income of
$63 million and EBITDA of$129 million impacted by lower Rockies volumes, offset by Permian crude oil and Bakken natural gas volume growth - Reported net cash from operating activities of
$219 million and DCF attributable to common unitholders of$255 million - Announced agreement to be acquired by
MPLX
The company also announced that
"
"Looking forward, we expect solid results in the Terminalling and Transportation segment, driven by the 2018 Drop Down and seasonally strong demand through our terminal and pipeline assets," Heminger continued. "We also expect strong results in the Gathering and Processing segment from continued growth in Permian crude, Bakken gas, and full operations on our NGL Logistics Hub project."
The company generated $219 million in net cash from operating activities and distributable cash flow (DCF) attributable to common unitholders of $255 million during the quarter. On April 29, 2019,
First-Quarter Results
Three Months Ended March 31, |
||||||
($ in millions) |
2019 |
2018 (a) |
||||
Net Earnings |
$ |
157 |
$ |
131 |
||
Segment Operating Income |
||||||
Terminalling and Transportation |
$ |
152 |
$ |
104 |
||
Gathering and Processing |
63 |
77 |
||||
Wholesale |
5 |
4 |
||||
EBITDA (b) |
$ |
319 |
$ |
275 |
||
Segment EBITDA (b) |
||||||
Terminalling and Transportation |
$ |
191 |
$ |
143 |
||
Gathering and Processing |
129 |
133 |
||||
Wholesale |
8 |
7 |
||||
Net Cash From Operating Activities |
$ |
219 |
$ |
266 |
||
Distributable Cash Flow Attributable to Common Unitholders (b) |
$ |
255 |
$ |
199 |
||
Total Distributions to be Paid to Common Unitholders |
$ |
240 |
$ |
205 |
||
Distribution Coverage Ratio (b) |
1.06x |
0.97x |
(a) |
Adjusted to include the historical results of the Predecessors. See "Items Impacting Comparability." |
(b) |
For more information on EBITDA, Segment EBITDA, Distributable Cash Flow Attributable to Common Unitholders and Distribution Coverage Ratio, see "Non-GAAP Measures." |
Segment Results
Terminalling and Transportation
Terminalling and Transportation segment operating income was $152 million for the first-quarter 2019, an increase of $48 million from the prior year, and segment EBITDA was $191 million, an increase of $48 million from the prior year. The year-over-year increase was primarily attributable to contributions from the 2018 Drop Down, stronger year-over-year pipeline transportation volumes associated with lower refinery turnaround activity, and the SLC Core Pipeline System acquisition. During the quarter, the 2018 Drop Down contributed $19 million of segment operating income and $26 million of segment EBITDA.
Gathering and Processing
Gathering and Processing segment operating income was
Wholesale
Wholesale segment operating income was $5 million for the first-quarter 2019, an increase of $1 million from the prior year, and segment EBITDA for the first-quarter 2019 was $8 million, an increase of $1 million from the prior year. The slight year-over-year increase was driven by higher volumes and a favorable wholesale margin environment.
Balance Sheet and Cash Flow
Net cash from operating activities was $219 million in the first-quarter 2019, and distributable cash flow attributable to common unitholders for the first-quarter was $255 million. As of
Net capital expenditures for the first-quarter 2019 were $106 million, which included $100 million of net growth investments and $6 million of net maintenance capital.
Conference Call
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws regarding
Factors that could cause MPC's actual results to differ materially from those implied in the forward-looking statements include: the risk that the cost savings and any other synergies from the Andeavor transaction may not be fully realized or may take longer to realize than expected; disruption from the Andeavor transaction making it more difficult to maintain relationships with customers, employees or suppliers; risks relating to any unforeseen liabilities of Andeavor; risks as set forth above related to the acquisition of ANDX by
We have based our forward-looking statements on our current expectations, estimates and projections about our industry. We caution that these statements are not guarantees of future performance and you should not rely unduly on them, as they involve risks, uncertainties, and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. While our respective management considers these assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast in our forward-looking statements. We undertake no obligation to update any forward-looking statements except to the extent required by applicable law.
Additional Information and Where to Find It
In connection with the proposed transaction, a registration statement on Form S-4 will be filed with the
Participants in Solicitation
Investor Relations Contact:
Media Contact:
Non-GAAP Measures
As a supplement to our financial information presented in accordance with accounting principles generally accepted in
- Financial non-GAAP measures:
- EBITDA - U.S. GAAP-based net earnings before interest, income taxes, and depreciation and amortization expense;
- Distributable Cash Flow - U.S. GAAP-based net cash flow from EBITDA adjusted for amounts spent on maintenance capital net of reimbursements and other adjustments;
- Pro forma LTM EBITDA - Last twelve months ("LTM") of our EBITDA adjusted for pro forma contributions from acquisitions; and
- Segment EBITDA - A segment's U.S. GAAP-based operating income before depreciation and amortization expense plus equity in earnings (loss) of equity method investments and other income (expense), net.
- Liquidity non-GAAP measures:
- Distributable Cash Flow - U.S. GAAP-based net cash flow from operating activities adjusted for changes in working capital, amounts spent on maintenance capital net of reimbursements and other adjustments not expected to settle in cash;
- Distributable Cash Flow Attributable to Common Unitholders - Distributable Cash Flow minus distributions associated with the preferred units;
- Distribution Coverage Ratio - Distributable Cash Flow Attributable to Common Unitholders divided by total distributions to be paid to common unitholders for the reporting period; and
- Leverage Ratio - Total debt divided by Pro forma LTM EBITDA.
- Operating performance non-GAAP measure:
- Average Margin on Natural Gas Liquids ("NGLs") Sales per Barrel - NGL sales revenues minus amounts recognized as NGL expense divided by our NGL sales volumes in barrels.
We present these measures because we believe they may help investors, analysts, lenders and ratings agencies analyze our results of operations and liquidity in conjunction with our U.S. GAAP results, including but not limited to:
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow 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.
Management also uses these measures to assess internal performance, and we believe they may provide meaningful supplemental information to the users of our financial statements. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings, operating income and net cash from operating activities. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. See "Reconciliation of Amounts Reported Under U.S. GAAP," "Segment Reconciliation of Amounts Reported Under U.S. GAAP," and "Average Margin on NGL Sales per Barrel" for reconciliations between non-GAAP measures and their most directly comparable U.S. GAAP measures.
Items Impacting Comparability
The Partnership's results of operations may not be comparable to the historical results of operations for the reasons described below.
Acquisitions and Mergers
Other than certain assets acquired from the 2018 Drop Down, our Predecessors did not record revenues with Andeavor and our Predecessors recorded general and administrative expenses and financed operations differently than the Partnership. As previously mentioned, on
Andeavor Logistics LP |
||||||
Condensed Consolidated Balance Sheets (Unaudited) (In millions) |
||||||
March 31, 2019 |
December 31, |
|||||
Assets |
||||||
Current Assets |
||||||
Cash and cash equivalents |
$ |
29 |
$ |
10 |
||
Receivables, net of allowance for doubtful accounts |
561 |
474 |
||||
Prepayments and other current assets |
58 |
79 |
||||
Total Current Assets |
648 |
563 |
||||
Property, Plant and Equipment, Net |
6,882 |
6,845 |
||||
Other Noncurrent Assets, Net |
3,004 |
2,887 |
||||
Total Assets |
$ |
10,534 |
$ |
10,295 |
||
Liabilities and Equity |
||||||
Current Liabilities |
||||||
Accounts payable |
$ |
482 |
$ |
466 |
||
Accrued interest and financing costs |
69 |
41 |
||||
Current maturities of debt |
503 |
504 |
||||
Other current liabilities |
91 |
81 |
||||
Total Current Liabilities |
1,145 |
1,092 |
||||
Debt, Net of Unamortized Issuance Costs |
4,622 |
4,460 |
||||
Other Noncurrent Liabilities |
177 |
69 |
||||
Equity |
4,590 |
4,674 |
||||
Total Liabilities and Equity |
$ |
10,534 |
$ |
10,295 |
Andeavor Logistics LP |
||||||
Results of Operations (Unaudited) (In millions, except per unit amounts) |
||||||
Three Months Ended March 31, |
||||||
2019 |
2018 (a) |
|||||
Revenues |
||||||
Terminalling and Transportation |
$ |
293 |
$ |
232 |
||
Gathering and Processing |
321 |
299 |
||||
Wholesale |
22 |
17 |
||||
Intersegment revenues |
(6) |
(2) |
||||
Total Revenues |
630 |
546 |
||||
Costs and Expenses |
||||||
NGL expense (excluding items shown separately below) |
59 |
48 |
||||
Operating expenses (excluding depreciation and amortization) |
239 |
201 |
||||
Depreciation and amortization expenses |
101 |
89 |
||||
General and administrative expenses |
20 |
31 |
||||
Operating Income |
211 |
177 |
||||
Interest and financing costs, net |
(61) |
(55) |
||||
Equity in earnings of equity method investments |
7 |
8 |
||||
Other income, net |
— |
1 |
||||
Net Earnings |
$ |
157 |
$ |
131 |
||
Loss attributable to Predecessors |
$ |
— |
$ |
8 |
||
Net Earnings Attributable to Partners |
157 |
139 |
||||
Preferred unitholders' interest in net earnings |
(10) |
(14) |
||||
Limited Partners' Interest in Net Earnings |
$ |
147 |
$ |
125 |
||
Net Earnings per Limited Partner Unit: |
||||||
Common - basic |
$ |
0.60 |
$ |
0.59 |
||
Common - diluted |
$ |
0.60 |
$ |
0.59 |
||
Weighted Average Limited Partner Units Outstanding: |
||||||
Common units - basic |
245.5 |
217.2 |
||||
Common units - diluted |
245.7 |
217.4 |
Andeavor Logistics LP |
||||||
Selected Operating Segment Data (Unaudited) (In millions) |
||||||
Three Months Ended March 31, |
||||||
2019 |
2018 (a) |
|||||
Earnings Before Income Taxes |
||||||
Terminalling and Transportation |
$ |
152 |
$ |
104 |
||
Gathering and Processing |
63 |
77 |
||||
Wholesale |
5 |
4 |
||||
Total Segment Operating Income |
220 |
185 |
||||
Unallocated general and administrative expenses |
(9) |
(8) |
||||
Operating Income |
211 |
177 |
||||
Interest and financing costs, net |
(61) |
(55) |
||||
Equity in earnings of equity method investments |
7 |
8 |
||||
Other income, net |
— |
1 |
||||
Earnings Before Income Taxes |
$ |
157 |
$ |
131 |
||
Depreciation and Amortization Expenses |
||||||
Terminalling and Transportation |
$ |
36 |
$ |
33 |
||
Gathering and Processing |
62 |
53 |
||||
Wholesale |
3 |
3 |
||||
Total Depreciation and Amortization Expenses |
$ |
101 |
$ |
89 |
||
Segment EBITDA (c) |
||||||
Terminalling and Transportation |
$ |
191 |
$ |
143 |
||
Gathering and Processing |
129 |
133 |
||||
Wholesale |
8 |
7 |
||||
Total Segment EBITDA |
$ |
328 |
$ |
283 |
||
Capital Expenditures |
||||||
Terminalling and Transportation |
$ |
25 |
$ |
46 |
||
Gathering and Processing |
97 |
110 |
||||
Wholesale |
— |
1 |
||||
Total Capital Expenditures |
$ |
122 |
$ |
157 |
(c) |
See "Non-GAAP Reconciliations" section below for further information regarding this non-GAAP measure. |
Andeavor Logistics LP |
||||||
Components of Cash Flows (Unaudited) (In millions) |
||||||
Three Months Ended March 31, |
||||||
2019 |
2018 (a) |
|||||
Cash Flows From (Used In) |
||||||
Net earnings |
$ |
157 |
$ |
131 |
||
Depreciation and amortization expenses |
101 |
89 |
||||
Changes in assets and liabilities |
(43) |
38 |
||||
Other operating activities |
4 |
8 |
||||
Net Cash Flows from Operating Activities |
219 |
266 |
||||
Investing Activities |
(119) |
(324) |
||||
Financing Activities |
(81) |
10 |
||||
Increase (Decrease) in Cash and Cash Equivalents |
$ |
19 |
$ |
(48) |
Andeavor Logistics LP |
||||||
Selected Operating Segment Data (Unaudited) |
||||||
(In millions, except volumes and revenue per barrel) |
||||||
Three Months Ended March 31, |
||||||
2019 |
2018 (a) |
|||||
Terminalling and Transportation Segment |
||||||
Revenues |
||||||
Terminalling |
$ |
245 |
$ |
199 |
||
Pipeline transportation |
46 |
31 |
||||
Other revenues |
2 |
2 |
||||
Total Revenues |
293 |
232 |
||||
Costs and Expenses |
||||||
Operating expenses |
101 |
85 |
||||
Depreciation and amortization expenses |
36 |
33 |
||||
General and administrative expenses |
4 |
10 |
||||
Terminalling and Transportation Segment Operating Income |
$ |
152 |
$ |
104 |
||
Volumes |
||||||
Terminalling throughput (Mbpd) |
1,789 |
1,751 |
||||
Average terminalling revenue per barrel (d) |
$ |
1.53 |
$ |
1.26 |
||
Pipeline transportation throughput (Mbpd) |
1,067 |
877 |
||||
Average pipeline transportation revenue per barrel (d) |
$ |
0.47 |
$ |
0.39 |
(d) |
Management uses average margin per barrel, average revenue per Million British thermal units ("MMBtu"), average revenue per barrel and fuel sales per gallon to evaluate performance and compare profitability to other companies in the industry. |
|
|
There are a variety of ways to calculate these measures; other companies may calculate these in a different way. Amounts may not recalculate due to rounding of dollar and volume information. |
Andeavor Logistics LP |
||||||
Selected Operating Segment Data (Unaudited) |
||||||
(In millions, except volumes, margin per barrel, revenue per barrel and revenue per MMBtu) |
||||||
Three Months Ended March 31, |
||||||
2019 |
2018 (a) |
|||||
Gathering and Processing Segment |
||||||
Revenues |
||||||
NGL sales (e) |
$ |
122 |
$ |
104 |
||
Gas gathering and processing |
70 |
85 |
||||
Crude oil and water gathering |
97 |
75 |
||||
Pass-thru and other |
32 |
35 |
||||
Total Revenues |
321 |
299 |
||||
Costs and Expenses |
||||||
NGL expense (excluding items shown separately below) |
59 |
48 |
||||
Operating expenses |
131 |
108 |
||||
Depreciation and amortization expenses |
62 |
53 |
||||
General and administrative expenses |
6 |
13 |
||||
Gathering and Processing Segment Operating Income |
$ |
63 |
$ |
77 |
||
Volumes |
||||||
NGL sales (Mbpd) (e) |
6.8 |
11.8 |
||||
Average margin on NGL sales per barrel (c)(d)(e) |
$ |
103.76 |
$ |
53.22 |
||
Gas gathering and processing throughput (thousands of MMBtu/d) |
699 |
831 |
||||
Average gas gathering and processing revenue per MMBtu (d) |
$ |
1.11 |
$ |
1.13 |
||
Crude oil and water gathering volume (Mbpd) |
528 |
400 |
||||
Average crude oil and water gathering revenue per barrel (d) |
$ |
2.03 |
$ |
2.08 |
(e) |
We had 29.7 Mbpd and 26.7 Mbpd of NGL sales under percent of proceeds ("POP") and keep-whole arrangements, for the three months ended March 31, 2019 and March 31, 2018, respectively, of which we retained 6.8 Mbpd and 11.8 Mbpd, respectively. The difference between gross sales barrels and barrels retained is reflected in NGL expense resulting from the gross presentation required for the POP arrangements. Volumes represent barrels sold under our keep-whole arrangements, net barrels retained under our POP arrangements and other associated products. |
Andeavor Logistics LP |
|||||||
Selected Operating Segment Data (Unaudited) |
|||||||
(In millions, except per gallon) |
|||||||
Three Months Ended March 31, |
|||||||
2019 |
2018 (a) |
||||||
Wholesale Segment |
|||||||
Revenues |
|||||||
Fuel sales |
$ |
12 |
$ |
9 |
|||
Other wholesale |
10 |
8 |
|||||
Total Revenues |
22 |
17 |
|||||
Costs and Expenses |
|||||||
Operating expenses |
13 |
10 |
|||||
Depreciation and amortization expenses |
3 |
3 |
|||||
General and administrative expenses |
1 |
— |
|||||
Wholesale Operating Income |
$ |
5 |
$ |
4 |
|||
Volumes |
|||||||
Fuel sales volumes (millions of gallons) |
326 |
286 |
|||||
Wholesale fuel sales per gallon (d) |
3.6 |
¢ |
3.1 |
¢ |
Non-GAAP Reconciliations
Andeavor Logistics LP |
||||||
Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited) |
||||||
(In millions, except ratios) |
||||||
Three Months Ended March 31, |
||||||
2019 |
2018 (a) |
|||||
Reconciliation of Net Earnings to EBITDA |
||||||
Net earnings |
$ |
157 |
$ |
131 |
||
Depreciation and amortization expenses |
101 |
89 |
||||
Interest and financing costs, net of capitalized interest |
61 |
55 |
||||
EBITDA |
319 |
275 |
||||
Predecessor impact |
— |
2 |
||||
Maintenance capital expenditures (f) |
(29) |
(22) |
||||
Reimbursement for maintenance capital expenditures (f) |
15 |
6 |
||||
Changes in deferred revenue (g) |
1 |
(3) |
||||
Interest and financing costs, net |
(61) |
(55) |
||||
Amortized debt costs |
2 |
3 |
||||
Adjustments for equity method investments |
7 |
3 |
||||
Other (h) |
11 |
— |
||||
Distributable Cash Flow |
265 |
209 |
||||
Less: Preferred unit distributions (i) |
(10) |
(10) |
||||
Distributable Cash Flow Attributable to Common Unitholders |
$ |
255 |
$ |
199 |
(f) |
We adjust our reconciliation of distributable cash flows for maintenance capital expenditures, tank restoration costs and expenditures required to ensure the safety, reliability, integrity and regulatory compliance of our assets with an offset for any reimbursements received for such expenditures. |
(g) |
Included in changes in deferred revenue are adjustments to remove the impact of the adoption of the new revenue recognition accounting standard on January 1, 2018 as well as the impact from the timing of recognition with certain of our contracts that contain minimum volume commitment with clawback provisions. |
(h) |
Other includes transaction costs related to recent acquisitions, non-cash legal reserves and unit-based compensation expense. |
(i) |
Represents the cash distributions earned by the Preferred Units for the three months ended March 31, 2019 assuming a distribution is declared by the Board of Directors. Cash distributions to be paid to holders of the Preferred Units are not available to common unitholders. |
Three Months Ended March 31, |
||||||
2019 |
2018 (a) |
|||||
Reconciliation of Net Cash from Operating Activities to Distributable Cash Flow |
||||||
Net cash from operating activities |
$ |
219 |
$ |
266 |
||
Changes in assets and liabilities |
43 |
(38) |
||||
Predecessors impact |
— |
2 |
||||
Maintenance capital expenditures (f) |
(29) |
(22) |
||||
Reimbursement for maintenance capital expenditures (f) |
15 |
6 |
||||
Adjustments for equity method investments |
7 |
(1) |
||||
Changes in deferred revenue (g) |
1 |
(3) |
||||
Other (j) |
9 |
(1) |
||||
Distributable Cash Flow |
265 |
209 |
||||
Less: Preferred unit distributions (i) |
(10) |
(10) |
||||
Distributable Cash Flow Attributable to Common Unitholders |
$ |
255 |
$ |
199 |
(j) |
Other includes transaction costs related to recent acquisitions and non-cash legal reserves. |
Three Months Ended March 31, |
||||||
2019 |
2018 (a) |
|||||
Distributions |
||||||
Limited partner's distributions on common units |
$ |
240 |
$ |
205 |
||
Distributions on preferred units |
10 |
10 |
||||
Total Distributions to be Paid |
250 |
215 |
||||
Less: Distributions on preferred units |
(10) |
(10) |
||||
Total Distributions to be Paid to Common Unitholders |
$ |
240 |
$ |
205 |
||
Distributable Cash Flow Attributable to Common Unitholders |
$ |
255 |
$ |
199 |
||
Distribution Coverage Ratio |
1.06x |
0.97x |
Andeavor Logistics LP |
||||||
Segment Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited) |
||||||
(In millions) |
||||||
Three Months Ended March 31, |
||||||
2019 |
2018 (a) |
|||||
Reconciliation of Segment Operating Income to Segment EBITDA |
||||||
Terminalling and Transportation segment operating income |
$ |
152 |
$ |
104 |
||
Depreciation and amortization expenses |
36 |
33 |
||||
Equity in earnings of equity method investments |
3 |
5 |
||||
Other income, net |
— |
1 |
||||
Terminalling and Transportation Segment EBITDA |
$ |
191 |
$ |
143 |
||
Gathering and Processing segment operating income |
$ |
63 |
$ |
77 |
||
Depreciation and amortization expenses |
62 |
53 |
||||
Equity in earnings of equity method investments |
4 |
3 |
||||
Gathering and Processing Segment EBITDA |
$ |
129 |
$ |
133 |
||
Wholesale segment operating income |
$ |
5 |
$ |
4 |
||
Depreciation and amortization expenses |
3 |
3 |
||||
Wholesale Segment EBITDA |
$ |
8 |
$ |
7 |
Andeavor Logistics LP |
||||||
Average Margin on NGL Sales per Barrel (Unaudited) |
||||||
(In millions, except days and per barrel amounts) |
||||||
Three Months Ended March 31, |
||||||
2019 |
2018 (a) |
|||||
Segment Operating Income |
$ |
63 |
$ |
77 |
||
Add back: |
||||||
Operating expenses (excluding depreciation and amortization) |
131 |
108 |
||||
General and administrative expenses |
6 |
13 |
||||
Depreciation and amortization expenses |
62 |
53 |
||||
Subtract: |
||||||
Gas gathering and processing revenues |
(70) |
(85) |
||||
Crude oil gathering revenues |
(97) |
(75) |
||||
Pass-thru and other revenues |
(32) |
(35) |
||||
Margin on NGL Sales |
$ |
63 |
$ |
56 |
||
Divided by Total Volumes for the Period: |
||||||
NGLs sales volumes (Mbpd) |
6.8 |
11.8 |
||||
Number of days in the period |
90 |
90 |
||||
Total volumes for the period (thousands of barrels) (k) |
612 |
1,062 |
||||
Average Margin on NGL Sales per Barrel (k) |
$ |
103.76 |
$ |
53.22 |
(k) |
Amounts may not recalculate due to rounding of dollar and volume information. |
Andeavor Logistics LP |
||||||
Selected Financial Data (Unaudited) (In millions) |
||||||
Three Months Ended March 31, |
||||||
2019 |
2018 (a) |
|||||
Capital Expenditures |
||||||
Growth |
$ |
104 |
$ |
142 |
||
Maintenance |
18 |
15 |
||||
Total Capital Expenditures |
$ |
122 |
$ |
157 |
||
Capital Expenditures, Net of Reimbursements |
||||||
Growth |
$ |
100 |
$ |
132 |
||
Maintenance |
6 |
13 |
||||
Total Capital Expenditures, Net of Reimbursements |
$ |
106 |
$ |
145 |
||
Capital Expenditures, Andeavor Logistics LP (l) |
||||||
Growth |
$ |
104 |
$ |
71 |
||
Maintenance |
18 |
12 |
||||
Total Capital Expenditures, Andeavor Logistics LP |
$ |
122 |
$ |
83 |
||
Capital Expenditures, Net of Reimbursements, Andeavor Logistics LP (l) |
||||||
Growth |
$ |
100 |
$ |
61 |
||
Maintenance |
6 |
10 |
||||
Total Capital Expenditures, Net of Reimbursements, Andeavor Logistics LP |
$ |
106 |
$ |
71 |
||
Capital Expenditures, Predecessors |
||||||
Growth |
$ |
— |
$ |
71 |
||
Maintenance |
— |
3 |
||||
Total Capital Expenditures, Predecessors |
$ |
— |
$ |
74 |
||
Deferred Costs |
||||||
Turnarounds & Catalysts |
$ |
1 |
$ |
7 |
||
Tank Restoration |
10 |
6 |
||||
Total Deferred Costs |
$ |
11 |
$ |
13 |
(l) |
We believe that this presentation of our results of operations, excluding results of our Predecessors, will provide useful information to investors in assessing our results of operations. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. |
Three Months Ended March 31, |
|||||||
2019 |
2018 (a) |
||||||
General and Administrative Expenses |
|||||||
Terminalling and Transportation |
$ |
4 |
$ |
10 |
|||
Gathering and Processing |
6 |
13 |
|||||
Wholesale |
1 |
— |
|||||
Unallocated |
9 |
8 |
|||||
Total General and Administrative Expenses |
$ |
20 |
$ |
31 |
Andeavor Logistics LP |
||||||||||
Reconciliation of Combined Financial Statements (Unaudited) (In millions) |
||||||||||
Three Months Ended March 31, 2018 |
||||||||||
Combined |
Andeavor |
Predecessors |
||||||||
Revenues |
||||||||||
Affiliate |
$ |
327 |
$ |
318 |
$ |
9 |
||||
Third-party |
219 |
217 |
2 |
|||||||
Total Revenues |
546 |
535 |
11 |
|||||||
Costs and Expenses |
||||||||||
NGL expense (exclusive of items shown separately below) |
48 |
48 |
— |
|||||||
Operating expenses (exclusive of depreciation and amortization) |
201 |
190 |
11 |
|||||||
Depreciation and amortization expenses |
89 |
80 |
9 |
|||||||
General and administrative expenses |
31 |
27 |
4 |
|||||||
Operating Income (Loss) |
177 |
190 |
(13) |
|||||||
Interest and financing costs, net |
(55) |
(54) |
(1) |
|||||||
Equity in earnings of equity method investments |
8 |
2 |
6 |
|||||||
Other income, net |
1 |
1 |
— |
|||||||
Net Earnings (Loss) |
$ |
131 |
$ |
139 |
$ |
(8) |
||||
Loss attributable to Predecessors |
8 |
— |
8 |
|||||||
Net Earnings Attributable to Partners |
139 |
139 |
— |
|||||||
Preferred unitholders' interest in net earnings |
(14) |
(14) |
— |
|||||||
Limited Partners' Interest in Net Earnings |
$ |
125 |
$ |
125 |
$ |
— |
Andeavor Logistics LP |
||||||||||
Terminalling and Transportation Segment Reconciliation of Combined Financial Statements |
||||||||||
(Unaudited) (In millions) |
||||||||||
Three Months Ended March 31, 2018 |
||||||||||
Combined |
Andeavor |
Predecessors |
||||||||
Revenues |
||||||||||
Terminalling |
$ |
199 |
$ |
198 |
$ |
1 |
||||
Pipeline transportation |
31 |
31 |
— |
|||||||
Other revenues |
2 |
2 |
— |
|||||||
Terminalling and Transportation Revenues |
232 |
231 |
1 |
|||||||
Costs and Expenses |
||||||||||
Operating expenses (exclusive of depreciation and amortization) |
85 |
74 |
11 |
|||||||
Depreciation and amortization expenses |
33 |
29 |
4 |
|||||||
General and administrative expenses |
10 |
8 |
2 |
|||||||
Terminalling and Transportation Segment Operating Income (Loss) |
104 |
120 |
(16) |
|||||||
Depreciation and amortization expenses |
33 |
29 |
4 |
|||||||
Equity in earnings of unconsolidated affiliates |
5 |
— |
5 |
|||||||
Other income, net |
1 |
1 |
— |
|||||||
Terminalling and Transportation Segment EBITDA |
$ |
143 |
$ |
150 |
$ |
(7) |
Andeavor Logistics LP |
||||||||||
Gathering and Processing Segment Reconciliation of Combined Financial Statements |
||||||||||
(Unaudited) (In millions) |
||||||||||
Three Months Ended March 31, 2018 |
||||||||||
Combined |
Andeavor |
Predecessors |
||||||||
Revenues |
||||||||||
NGL sales |
$ |
104 |
$ |
104 |
$ |
— |
||||
Gas gathering and processing |
85 |
85 |
— |
|||||||
Crude oil and water gathering |
75 |
65 |
10 |
|||||||
Pass-thru and other |
35 |
35 |
— |
|||||||
Total Revenues |
299 |
289 |
10 |
|||||||
Costs and Expenses |
||||||||||
NGL expense (exclusive of items shown separately below) |
48 |
48 |
— |
|||||||
Operating expenses (exclusive of depreciation and amortization) |
108 |
108 |
— |
|||||||
Depreciation and amortization expenses |
53 |
48 |
5 |
|||||||
General and administrative expenses |
13 |
11 |
2 |
|||||||
Gathering and Processing Segment Operating Income |
77 |
74 |
3 |
|||||||
Depreciation and amortization expenses |
53 |
48 |
5 |
|||||||
Equity in earnings of equity method investments |
3 |
2 |
1 |
|||||||
Gathering and Processing Segment EBITDA |
$ |
133 |
$ |
124 |
$ |
9 |
Andeavor Logistics LP |
||||||||||
Reconciliation of EBITDA to Amounts Under U.S. GAAP (Unaudited) (In millions) |
||||||||||
2018 Drop Down Three Months |
||||||||||
Net Earnings |
$ |
33 |
||||||||
Add: Depreciation and amortization expense |
7 |
|||||||||
Add: Interest and financing costs, net |
7 |
|||||||||
EBITDA |
$ |
47 |
||||||||
2018 Drop Down Segment EBITDA Contribution Three Months Ended March 31, 2019 |
||||||||||
Terminalling and |
Gathering and |
Total |
||||||||
Operating Income |
$ |
19 |
$ |
17 |
$ |
36 |
||||
Add: Depreciation and amortization expenses |
4 |
3 |
7 |
|||||||
Add: Equity in earnings of equity method investments |
3 |
1 |
4 |
|||||||
Segment EBITDA |
$ |
26 |
$ |
21 |
$ |
47 |
Andeavor Logistics LP |
||||||||||||||||||
Reconciliation of EBIToDA to Amounts Under U.S. GAAP (Unaudited) (In millions) |
||||||||||||||||||
Three Months Ended |
||||||||||||||||||
June 30, |
September |
December |
March 31, |
Trailing Four |
||||||||||||||
Net Earnings |
$ |
132 |
$ |
166 |
$ |
171 |
$ |
157 |
$ |
626 |
||||||||
Add: Depreciation and amortization expense |
93 |
85 |
101 |
101 |
380 |
|||||||||||||
Add: Interest and financing costs, net |
60 |
57 |
61 |
61 |
239 |
|||||||||||||
EBITDA |
$ |
285 |
$ |
308 |
$ |
333 |
$ |
319 |
1,245 |
|||||||||
Add: Pro forma adjustment for acquisitions |
75 |
|||||||||||||||||
Pro forma LTM EBITDA |
$ |
1,320 |
March 31, 2019 |
||
Total debt |
$ |
5,167 |
Pro forma LTM EBITDA |
1,320 |
|
Leverage ratio |
3.9x |
View original content:http://www.prnewswire.com/news-releases/andeavor-logistics-lp-reports-first-quarter-2019-results-300846178.html
SOURCE