Southcross Energy Partners, L.P. (NYSE:SXE) (“Southcross” or the
“Partnership”) today announced third quarter 2016 financial and
operating results.
Southcross’ net loss was $32.6 million for the
quarter ended September 30, 2016, compared to $9.7 million for the
same period in the prior year and $7.4 million for the quarter
ended June 30, 2016. Net loss for the third quarter was
higher than the prior quarter loss due primarily to higher
depreciation and amortization expense and lower gain on sale of
assets.
Adjusted EBITDA (as defined below) was $14.8
million for the quarter ended September 30, 2016, compared to $23.6
million for the same period in the prior year and $15.6 million for
the quarter ended June 30, 2016. Adjusted EBITDA for the third
quarter was below the prior quarter due to lower processed gas
volumes, partially offset by lower expenses.
Processed gas volumes during the quarter averaged
299 MMcf/d, a decrease of 32% compared to 441 MMcf/d for the same
period in the prior year and a decrease of 6% compared to 319
MMcf/d for the quarter ended June 30, 2016. The sequential quarter
volumetric decline primarily represents a producer that reduced
volumes below the minimum volume commitment level. Any
deficiency payments associated with this volumetric shortfall will
be determined at the end of the year.
Southcross implemented several key initiatives
during the quarter that are expected to reduce operating expenses
and lower future capital expenditure requirements. These
initiatives include the planned shut-down and sale of two of its
older and less efficient processing facilities and the
reconfiguration of assets at the Lone Star processing facility to
reduce electricity costs. In 2017, Southcross expects to
realize $2 million in annual cost savings and $6 million in reduced
annual capital expenditure requirements. Southcross also
expects to receive $12 million in proceeds in 2017 related to these
activities, which includes insurance recoveries and the sale of
emissions credits. These represent the initial steps of a
comprehensive cost savings program that has been approved by
Southcross' Board of Directors and will be realized throughout
2017.
Capital Expenditures
For the quarter ended September 30, 2016,
growth capital expenditures were $3.9 million and were related
primarily to work to enhance system efficiency and capability.
Growth capital expenditures for the nine months ended September 30,
2016 were $13.3 million. Southcross expects that growth capital
expenditures for full year 2016 will be less than $30
million.
Capital and Liquidity
As of September 30, 2016, Southcross had total
outstanding debt of $561 million including $123 million under its
revolving credit facility as compared to total outstanding debt of
$570 million as of June 30, 2016. The reduction in debt on a
sequential quarter basis is due to the use of free cash flow from
the business to pay down the revolver as well as the mandatory term
loan amortization payment.
As of September 30, 2016, we were not in
compliance with the consolidated total leverage ratio of our
Financial Covenants absent an equity cure of $17.0 million. We
believe that we will have the ability to fund this equity cure
through the Equity Cure Contribution Agreement. Management is
pursuing multiple alternatives to enhance the Partnership’s
liquidity, including negotiation of amendments to certain covenants
and terms contained in our Revolving Credit Agreement, which may
include modifications to our existing Financial Covenants.
Distributable Cash Flow
Distributable cash flow (as defined below) for the
quarter ended September 30, 2016 was $5.8 million, compared to
$12.7 million for the same period in the prior year and $6.7
million for the quarter ended June 30, 2016.
Conference Call Information
Southcross will hold a conference call on Tuesday,
November 8, 2016, at 10:00 a.m. Central Time (11:00 a.m. Eastern
Time) to discuss its third quarter 2016 financial and operating
results. The call can be accessed live over the telephone by
dialing (877) 705-6003 or, for international callers, (201)
493-6725. The replay of the call will be available shortly after
the call and can be accessed by dialing (877) 870-5176 or, for
international callers, (858) 384-5517. The passcode for the replay
is 13645847. The replay of the call will be available for
approximately two weeks following the call.
Interested parties may also listen to a
simultaneous webcast of the call on Southcross’ website at
www.southcrossenergy.com under the “Investors” section. A
replay of the webcast will also be available for approximately two
weeks following the call.
About Southcross Energy Partners,
L.P.
Southcross Energy Partners, L.P. is a master
limited partnership that provides natural gas gathering,
processing, treating, compression and transportation services and
NGL fractionation and transportation services. It also sources,
purchases, transports and sells natural gas and NGLs. Its assets
are located in South Texas, Mississippi and Alabama and include
four gas processing plants, two fractionation plants and
approximately 3,100 miles of pipeline. The South Texas assets are
located in or near the Eagle Ford Shale region. Southcross is
headquartered in Dallas, Texas. Visit www.southcrossenergy.com for
more information.
About Southcross Holdings LP
Southcross Holdings LP, through its subsidiary
Southcross Holdings Borrower LP, owns 100% of Southcross Energy
Partners GP, LLC, the general partner of Southcross, as well as a
portion of Southcross' common units, and all of Southcross'
subordinated units and Class B convertible units. Holdings also
owns natural gas gathering and treating assets as well as NGL
pipelines and fractionation facilities in South Texas.
Forward-Looking Statements
This press release includes certain statements
concerning expectations for the future that are forward-looking
within the meaning of the federal securities laws. Forward-looking
statements include, without limitation, any statement that may
project, indicate or imply future results, events, performance or
achievements, and may contain the words “expect,” “intend,” “plan,”
“anticipate,” “estimate,” “believe,” “will be,” “will continue,”
“will likely result,” and similar expressions, or future
conditional verbs such as “may,” “will,” “should,” “would” and
“could.” Without limiting the generality of the foregoing,
forward-looking statements contained in this press release
specifically include: the expectations, plans, strategies,
objectives and growth of Southcross; and anticipated capital
expenditures and Adjusted EBITDA. Although Southcross
believes the expectations and forecasts reflected in these and
other forward-looking statements are reasonable, Southcross can
give no assurance they will prove to be correct. Forward-looking
statements contain known and unknown risks and uncertainties (many
of which are difficult to predict and beyond management’s control)
that may cause Southcross’ actual results in future periods to
differ materially from anticipated or projected results. An
extensive list of specific material risks and uncertainties
affecting Southcross is contained in its Annual Report on Form 10-K
filed with the Securities and Exchange Commission (the “SEC”) on
April 14, 2016 and in other documents and reports filed from time
to time with the SEC. Any forward-looking statements in this press
release are made as of the date hereof and Southcross undertakes no
obligation to update or revise any forward-looking statements to
reflect new information or events.
Use of Non-GAAP Financial
Measures
We report our financial results in accordance with
accounting principles generally accepted in the United States, or
GAAP. We also present the non-GAAP financial measures of Adjusted
EBITDA and distributable cash flow.
We define Adjusted EBITDA as net income/loss, plus
interest expense, income tax expense, depreciation and amortization
expense, equity in losses of joint venture investments, certain
non-cash charges (such as non-cash unit-based compensation,
impairments, loss on extinguishment of debt and unrealized losses
on derivative contracts), major litigation costs net of recoveries,
transaction-related costs, revenue deferral adjustment, loss on
sale of assets and selected charges that are unusual or
non-recurring; less interest income, income tax benefit, unrealized
gains on derivative contracts, equity in earnings of joint venture
investments and selected gains that are unusual or non-recurring.
Adjusted EBITDA should not be considered an alternative to net
income, operating cash flow or any other measure of financial
performance presented in accordance with GAAP.
Adjusted EBITDA is a key metric used in measuring
our compliance with our financial covenants under our debt
agreements and is used as a supplemental measure by our management
and by external users of our financial statements, such as
investors, commercial banks, research analysts and others, to
assess the ability of our assets to generate cash sufficient to
support our indebtedness and make future cash distributions;
operating performance and return on capital as compared to those of
other companies in the midstream energy sector, without regard to
financing or capital structure; and the attractiveness of capital
projects and acquisitions and the overall rates of return on
investment opportunities.
We define distributable cash flow as Adjusted
EBITDA, plus interest income and income tax benefit, less cash paid
for interest (net of capitalized costs), income tax expense and
maintenance capital expenditures. We use distributable cash flow to
analyze our liquidity. Distributable cash flow does not reflect
changes in working capital balances. Distributable cash flow is
used to assess the ability of our assets to generate cash
sufficient to support our indebtedness and make future cash
distributions to our unitholders; and the attractiveness of capital
projects and acquisitions and the overall rates of return on
alternative investment opportunities.
Adjusted EBITDA and distributable cash flow are not
financial measures presented in accordance with GAAP. We believe
that the presentation of these non-GAAP financial measures provides
useful information to investors in assessing our financial
condition, results of operations and cash flows from operations.
Reconciliations of Adjusted EBITDA and distributable cash flow to
their most directly comparable GAAP measure are included in this
press release. Net income and net cash provided by operating
activities are the GAAP measures most directly comparable to
Adjusted EBITDA. The GAAP measure most directly comparable to
distributable cash flow is net cash provided by operating
activities. Our non-GAAP financial measures should not be
considered as alternatives to the most directly comparable GAAP
financial measure. Each of these non-GAAP financial measures has
important limitations as an analytical tool because each excludes
some but not all items that affect the most directly comparable
GAAP financial measure. You should not consider Adjusted EBITDA or
distributable cash flow in isolation or as a substitute for
analysis of our results as reported under GAAP. Because Adjusted
EBITDA and distributable cash flow may be defined differently by
other companies in our industry, our definitions of these non-GAAP
financial measures may not be comparable to similarly titled
measures of other companies, thereby diminishing their utility.
SOUTHCROSS ENERGY PARTNERS, L.P. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands, except for per unit
data) |
(Unaudited) |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenues: |
|
|
|
|
|
|
|
Revenues |
$ |
123,043 |
|
|
$ |
147,114 |
|
|
$ |
316,673 |
|
|
$ |
471,735 |
|
Revenues - affiliates |
21,619 |
|
|
32,455 |
|
|
72,418 |
|
|
60,993 |
|
Total revenues |
144,662 |
|
|
179,569 |
|
|
389,091 |
|
|
532,728 |
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Cost of natural gas and liquids
sold |
108,572 |
|
|
133,401 |
|
|
273,638 |
|
|
399,111 |
|
Operations and maintenance |
17,781 |
|
|
19,139 |
|
|
54,173 |
|
|
61,528 |
|
Depreciation and amortization |
31,449 |
|
|
17,853 |
|
|
68,898 |
|
|
52,456 |
|
General and administrative |
6,831 |
|
|
6,803 |
|
|
22,879 |
|
|
23,612 |
|
Impairment of assets |
476 |
|
|
— |
|
|
476 |
|
|
193 |
|
Loss (gain) on sale of assets,
net |
(179 |
) |
|
(33 |
) |
|
(12,755 |
) |
|
146 |
|
Total expenses |
164,930 |
|
|
177,163 |
|
|
407,309 |
|
|
537,046 |
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
(20,268 |
) |
|
2,406 |
|
|
(18,218 |
) |
|
(4,318 |
) |
Other expense: |
|
|
|
|
|
|
|
Equity in losses of joint venture
investments |
(3,694 |
) |
|
(3,567 |
) |
|
(10,656 |
) |
|
(10,722 |
) |
Interest expense |
(8,598 |
) |
|
(8,688 |
) |
|
(26,601 |
) |
|
(24,087 |
) |
Total other expense |
(12,292 |
) |
|
(12,255 |
) |
|
(37,257 |
) |
|
(34,809 |
) |
Loss before income tax
benefit |
(32,560 |
) |
|
(9,849 |
) |
|
(55,475 |
) |
|
(39,127 |
) |
Income tax benefit |
— |
|
|
190 |
|
|
2 |
|
|
113 |
|
Net loss |
$ |
(32,560 |
) |
|
$ |
(9,659 |
) |
|
$ |
(55,473 |
) |
|
$ |
(39,014 |
) |
General partner unit
in-kind distribution |
(12 |
) |
|
(28 |
) |
|
(38 |
) |
|
(165 |
) |
Net loss attributable
to Holdings |
— |
|
|
— |
|
|
— |
|
|
(4,258 |
) |
Net loss attributable
to partners |
$ |
(32,572 |
) |
|
$ |
(9,687 |
) |
|
$ |
(55,511 |
) |
|
$ |
(34,921 |
) |
|
|
|
|
|
|
|
|
Earnings per unit and
distributions declared |
|
|
|
|
|
|
|
Net loss allocated to
limited partner common units |
$ |
(17,915 |
) |
|
$ |
(4,799 |
) |
|
$ |
(29,235 |
) |
|
$ |
(16,711 |
) |
Weighted average number
of limited partner common units outstanding |
|
36,947 |
|
|
|
28,372 |
|
|
|
33,119 |
|
|
|
26,234 |
|
Basic and diluted loss
per common unit |
$ |
(0.48 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.88 |
) |
|
$ |
(0.64 |
) |
|
|
|
|
|
|
|
|
Net loss allocated to
limited partner subordinated units |
$ |
(5,920 |
) |
|
$ |
(2,065 |
) |
|
$ |
(10,777 |
) |
|
$ |
(7,777 |
) |
Weighted average number
of limited partner subordinated units outstanding |
|
12,214 |
|
|
|
12,214 |
|
|
|
12,214 |
|
|
|
12,214 |
|
Basic and diluted loss
per subordinated unit |
$ |
(0.48 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.88 |
) |
|
$ |
(0.64 |
) |
Distributions declared
and paid per common unit |
$ |
— |
|
|
$ |
0.40 |
|
|
$ |
— |
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOUTHCROSS ENERGY PARTNERS, L.P. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands, except for unit
data) |
(Unaudited) |
|
|
September 30, 2016 |
|
December 31, 2015 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
4,115 |
|
|
$ |
11,348 |
|
Trade accounts receivable |
37,120 |
|
|
39,585 |
|
Accounts receivable -
affiliates |
5,283 |
|
|
49,734 |
|
Prepaid expenses |
3,995 |
|
|
3,915 |
|
Other current assets |
1,526 |
|
|
1,256 |
|
Total current assets |
52,039 |
|
|
105,838 |
|
|
|
|
|
Property, plant and
equipment, net |
1,008,342 |
|
|
1,066,001 |
|
Investments in joint
ventures |
134,457 |
|
|
140,526 |
|
Other assets |
2,222 |
|
|
6,595 |
|
Total assets |
$ |
1,197,060 |
|
|
$ |
1,318,960 |
|
|
|
|
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable and accrued
liabilities |
$ |
48,074 |
|
|
$ |
66,458 |
|
Accounts payable - affiliates |
— |
|
|
7,871 |
|
Current portion of long-term
debt |
4,500 |
|
|
4,500 |
|
Other current liabilities |
7,466 |
|
|
10,406 |
|
Total current liabilities |
60,040 |
|
|
89,235 |
|
|
|
|
|
Long-term debt |
544,409 |
|
|
604,518 |
|
Other non-current
liabilities |
8,665 |
|
|
3,871 |
|
Total liabilities |
613,114 |
|
|
697,624 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Partners' capital: |
|
|
|
Common units (36,987,913 and
28,420,619 units outstanding as of September 30, 2016 and December
31, 2015, respectively) |
257,977 |
|
|
271,236 |
|
Class B Convertible units
(16,811,649 and 15,958,990 units issued and outstanding as of
September 30, 2016 and December 31, 2015) |
288,080 |
|
|
300,596 |
|
Subordinated units (12,213,713
units issued and outstanding as of September 30, 2016 and December
31, 2015) |
26,689 |
|
|
37,920 |
|
General partner interest |
11,200 |
|
|
11,584 |
|
Total partners' capital |
583,946 |
|
|
621,336 |
|
Total liabilities and partners'
capital |
$ |
1,197,060 |
|
|
$ |
1,318,960 |
|
|
|
|
|
|
|
|
|
SOUTHCROSS ENERGY PARTNERS, L.P. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
(Unaudited) |
|
|
Nine Months Ended September 30 |
|
2016 |
|
2015 |
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(55,473 |
) |
|
$ |
(39,014 |
) |
Adjustments to
reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
68,898 |
|
|
52,456 |
|
Unit-based compensation |
2,635 |
|
|
3,513 |
|
Amortization of deferred financing
costs and PIK interest |
2,796 |
|
|
2,615 |
|
Loss (gain) on sale of assets,
net |
(12,755 |
) |
|
146 |
|
Unrealized loss (gain) on financial
instruments |
(116 |
) |
|
289 |
|
Equity in losses of joint venture
investments |
10,656 |
|
|
10,722 |
|
Distribution from joint venture
investment |
740 |
|
|
500 |
|
Impairment of assets |
476 |
|
|
193 |
|
Other, net |
(247 |
) |
|
(69 |
) |
Changes in operating assets and
liabilities: |
|
|
|
Trade accounts receivable,
including affiliates |
46,444 |
|
|
5,613 |
|
Prepaid expenses and other current
assets |
(656 |
) |
|
(1,516 |
) |
Other non-current assets |
(63 |
) |
|
77 |
|
Accounts payable and accrued
liabilities |
(24,685 |
) |
|
(14,180 |
) |
Other liabilities, including
affiliates |
2,553 |
|
|
3,163 |
|
Net cash provided by operating
activities |
41,203 |
|
|
24,508 |
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
(17,329 |
) |
|
(93,946 |
) |
Insurance proceeds (expenditures)
from property damage claims |
125 |
|
|
(2,482 |
) |
Net proceeds from sales of
assets |
20,734 |
|
|
4,693 |
|
Consideration paid for Holdings'
drop-down acquisition |
— |
|
|
(15,000 |
) |
Investment contributions to joint
venture investments |
(5,327 |
) |
|
(2,474 |
) |
Net cash used in investing
activities |
(1,797 |
) |
|
(109,209 |
) |
Cash flows from
financing activities: |
|
|
|
Borrowings under our credit
facility |
3,110 |
|
|
136,000 |
|
Repayments under our credit
facility |
(62,250 |
) |
|
(31,000 |
) |
Repayments under our term loan
agreement |
(3,375 |
) |
|
(3,375 |
) |
Payments on capital lease
obligations |
(314 |
) |
|
(406 |
) |
Financing costs |
(130 |
) |
|
(685 |
) |
Tax withholdings on unit-based
compensation vested units |
(122 |
) |
|
(420 |
) |
Payments of distributions and
distribution equivalent rights |
— |
|
|
(35,088 |
) |
Expenses paid by Holdings on behalf
of Valley Wells' assets |
— |
|
|
17,858 |
|
Borrowing of senior unsecured PIK
notes |
14,000 |
|
|
— |
|
Repayment of senior unsecured PIK
notes and PIK interest |
(14,260 |
) |
|
— |
|
Valley Wells operating expense cap
adjustment |
4,053 |
|
|
518 |
|
Contributions from general
partner |
— |
|
|
1,301 |
|
Common unit issuances to Holdings
related to equity cures |
12,416 |
|
|
— |
|
Interest on receivable due from
Holdings |
233 |
|
|
— |
|
Net cash provided by (used in)
financing activities |
(46,639 |
) |
|
84,703 |
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
(7,233 |
) |
|
2 |
|
Cash and cash
equivalents — Beginning of period |
11,348 |
|
|
1,649 |
|
Cash and cash
equivalents — End of period |
$ |
4,115 |
|
|
$ |
1,651 |
|
|
|
|
|
|
|
|
|
SOUTHCROSS ENERGY PARTNERS, L.P. |
SELECTED FINANCIAL AND OPERATIONAL
DATA |
(In thousands, except for operating
data) |
(Unaudited) |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Financial
data: |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
14,834 |
|
|
$ |
23,573 |
|
|
$ |
51,129 |
|
|
$ |
58,991 |
|
|
|
|
|
|
|
|
|
Maintenance capital
expenditures |
$ |
969 |
|
|
$ |
3,351 |
|
|
$ |
4,081 |
|
|
$ |
8,968 |
|
Growth capital
expenditures |
3,926 |
|
|
25,636 |
|
|
13,248 |
|
|
84,978 |
|
|
|
|
|
|
|
|
|
Distributable cash
flow |
$ |
5,830 |
|
|
$ |
12,662 |
|
|
$ |
20,853 |
|
|
$ |
28,818 |
|
Cash distributions
declared |
— |
|
|
11,826 |
|
|
— |
|
|
33,546 |
|
|
|
|
|
|
|
|
|
Operating
data: |
|
|
|
|
|
|
|
Average volume of
processed gas (MMcf/d) |
299 |
|
|
441 |
|
|
320 |
|
|
432 |
|
Average volume of NGLs
produced (Bbls/d) |
29,675 |
|
|
43,541 |
|
|
35,043 |
|
|
42,031 |
|
Average daily
throughput Mississippi/Alabama (MMcf/d) |
|
136 |
|
|
|
216 |
|
|
|
146 |
|
|
|
234 |
|
|
|
|
|
|
|
|
|
Realized prices on
natural gas volumes ($/Mcf) |
$ |
2.76 |
|
|
$ |
3.61 |
|
|
$ |
2.15 |
|
|
$ |
3.07 |
|
Realized prices on NGL
volumes ($/gal) |
0.18 |
|
|
0.34 |
|
|
0.34 |
|
|
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SOUTHCROSS ENERGY PARTNERS, L.P. |
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
(In thousands) |
(Unaudited) |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net cash
provided by operating activities |
$ |
11,256 |
|
|
$ |
20,005 |
|
|
$ |
41,203 |
|
|
$ |
24,508 |
|
Add (deduct): |
|
|
|
|
|
|
|
Depreciation and amortization |
(31,449 |
) |
|
(17,853 |
) |
|
(68,898 |
) |
|
(52,456 |
) |
Unit-based compensation |
(929 |
) |
|
(1,038 |
) |
|
(2,635 |
) |
|
(3,513 |
) |
Amortization of deferred financing
costs and PIK interest |
(892 |
) |
|
(888 |
) |
|
(2,796 |
) |
|
(2,615 |
) |
Gain (loss) on sale of assets,
net |
179 |
|
|
33 |
|
|
12,755 |
|
|
(146 |
) |
Unrealized gain (loss) on financial
instruments |
61 |
|
|
(68 |
) |
|
116 |
|
|
(289 |
) |
Equity in losses of joint venture
investments |
(3,694 |
) |
|
(3,567 |
) |
|
(10,656 |
) |
|
(10,722 |
) |
Distribution from joint venture
investment |
(350 |
) |
|
(500 |
) |
|
(740 |
) |
|
(500 |
) |
Impairment of assets |
(476 |
) |
|
— |
|
|
(476 |
) |
|
(193 |
) |
Other, net |
63 |
|
|
67 |
|
|
247 |
|
|
69 |
|
Changes in operating assets and
liabilities: |
|
|
|
|
|
|
|
Trade accounts receivable,
including affiliates |
(2,035 |
) |
|
11,338 |
|
|
(46,444 |
) |
|
(5,613 |
) |
Prepaid expenses and other current
assets |
(1,679 |
) |
|
2,296 |
|
|
656 |
|
|
1,516 |
|
Other non-current assets |
63 |
|
|
(1 |
) |
|
63 |
|
|
(77 |
) |
Accounts payable and accrued
liabilities |
(3,123 |
) |
|
(17,224 |
) |
|
24,685 |
|
|
14,180 |
|
Other liabilities, including
affiliates |
445 |
|
|
(2,259 |
) |
|
(2,553 |
) |
|
(3,163 |
) |
Net
loss |
$ |
(32,560 |
) |
|
$ |
(9,659 |
) |
|
$ |
(55,473 |
) |
|
$ |
(39,014 |
) |
Add (deduct): |
|
|
|
|
|
|
|
Depreciation and amortization |
$ |
31,449 |
|
|
$ |
17,853 |
|
|
$ |
68,898 |
|
|
$ |
52,456 |
|
Interest expense |
8,598 |
|
|
8,688 |
|
|
26,601 |
|
|
24,087 |
|
Income tax benefit |
— |
|
|
(190 |
) |
|
(2 |
) |
|
(113 |
) |
Unrealized loss on commodity swap
derivatives |
— |
|
|
(15 |
) |
|
— |
|
|
(126 |
) |
Loss (gain) on sale of assets,
net |
(179 |
) |
|
(33 |
) |
|
(12,755 |
) |
|
146 |
|
Revenue deferral adjustment |
754 |
|
|
754 |
|
|
2,262 |
|
|
2,262 |
|
Unit-based compensation |
929 |
|
|
1,038 |
|
|
2,635 |
|
|
3,513 |
|
Major litigation costs, net of
recoveries |
173 |
|
|
18 |
|
|
416 |
|
|
509 |
|
Transaction-related costs |
— |
|
|
613 |
|
|
6 |
|
|
1,785 |
|
Equity in losses of joint venture
investments |
3,694 |
|
|
3,567 |
|
|
10,656 |
|
|
10,722 |
|
Severance expense |
— |
|
|
— |
|
|
16 |
|
|
734 |
|
Retention bonus due from
Holdings |
898 |
|
|
— |
|
|
2,694 |
|
|
— |
|
Valley Wells' operating expense cap
adjustment |
— |
|
|
505 |
|
|
2,406 |
|
|
1,023 |
|
Fees related to Equity Cure
Agreement |
12 |
|
|
— |
|
|
589 |
|
|
— |
|
Distribution from joint venture
investment |
350 |
|
|
500 |
|
|
740 |
|
|
500 |
|
Impairment of assets |
476 |
|
|
— |
|
|
476 |
|
|
193 |
|
Other, net (1) |
240 |
|
|
(66 |
) |
|
964 |
|
|
314 |
|
Adjusted
EBITDA |
$ |
14,834 |
|
|
$ |
23,573 |
|
|
$ |
51,129 |
|
|
$ |
58,991 |
|
Cash interest, net of capitalized
costs |
(8,035 |
) |
|
(7,750 |
) |
|
(26,197 |
) |
|
(21,317 |
) |
Income tax benefit |
— |
|
|
190 |
|
|
2 |
|
|
112 |
|
Maintenance capital
expenditures |
(969 |
) |
|
(3,351 |
) |
|
(4,081 |
) |
|
(8,968 |
) |
Distributable
cash flow |
$ |
5,830 |
|
|
$ |
12,662 |
|
|
$ |
20,853 |
|
|
$ |
28,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These amounts include an immaterial amount related to the
effects of presenting our financial results on an as-if pooled
basis (in connection with the 2015 Holdings Acquisition).
Contact:
Southcross Energy Partners, L.P.
David Lawrence, 214-979-3720
Investor Relations
investorrelations@southcrossenergy.com