Southcross Energy Partners, L.P. (NYSE:SXE) (“Southcross” or the
“Partnership”) today announced fourth quarter and full-year 2016
financial and operating results.
Southcross’ net loss was $39.5 million for the
quarter ended December 31, 2016, compared to $16.5 million for the
same period in the prior year and $32.6 million for the quarter
ended September 30, 2016. Adjusted EBITDA (as defined below)
was $18.4 million for the quarter ended December 31, 2016, compared
to $24.9 million for the same period in the prior year and $14.8
million for the quarter ended September 30, 2016. Adjusted
EBITDA for the fourth quarter was higher than the prior quarter due
to improved frac spreads, annual deficiency payments from producers
and lower overall general and administrative expenses.
Processed gas volumes during the quarter
averaged 287 MMcf/d, a decrease of 34% compared to 437 MMcf/d for
the same period in the prior year and a decrease of 4% compared to
299 MMcf/d for the quarter ended September 30, 2016.
“In 2016, Southcross focused on improving safe,
reliable operation of its assets and beginning to reduce costs to
better align with the current energy market environment and
realities,” said Bruce A. Williamson, President and Chief Executive
Officer of Southcross’ general partner. “We began several
initiatives that should result in reduced 2017 general and
administrative and operating expenses and lower future capital
expenditure requirements. We also began rationalizing some of our
assets including the planned shut-down and sale of two of our older
and less efficient processing facilities.”
“Looking ahead to 2017, we will continue an
internal focus on safe, reliable operations while seeking to
accelerate and expand cost reductions, rationalize assets and
capacity, and reduce our overall debt level toward a sustainable
capital structure,” said Williamson. “Externally, with the recently
announced bank amendment, we are now focused on seeking to take
advantage of any potential upturn in the natural gas and NGL
markets.”
Capital Expenditures
For the quarter ended December 31, 2016,
growth and maintenance capital expenditures were $8.7 million
and were related primarily to work to enhance system efficiency and
capability. For the year ended December 31, 2016, growth and
maintenance capital expenditures were $26.1 million and were
related primarily to various expansion and reliability improvement
projects in the Partnership’s South Texas assets, compared to
$108.7 million for the year ended December 31, 2015.
Southcross expects that capital expenditures for
full-year 2017, including growth and maintenance expenditures, will
be in the range of $14 million to $20 million and will be limited
to projects with contractually committed volumes, along with
recurring maintenance spending.
Capital and Liquidity
As of December 31, 2016, Southcross had total outstanding debt
of $560 million including $123 million under its revolving credit
facility as compared to total outstanding debt of $561 million as
of September 30, 2016.
In conjunction with the amendment to Southcross’
revolving credit agreement executed December 29, 2016, Southcross
Holdings LP, the parent of Southcross’ general partner, invested
$17 million into Southcross to further improve Southcross’
liquidity position.
Cash Distributions and Distributable Cash
Flow
Distributable cash flow (as defined below) for
the quarter ended December 31, 2016 was $9.5 million, compared to
$11.4 million for the same period in the prior year and $5.8
million for the quarter ended September 30, 2016. The
Partnership did not make a cash distribution for the quarter ended
December 31, 2016 and is not allowed to make any cash distributions
until the Partnership’s consolidated total leverage ratio, as
defined under its credit agreement, is at or below 5.0x to 1.
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 two gas processing plants, one fractionation plant 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 described in reports filed with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K and in subsequent reports, which are available through
the SEC’s EDGAR system at www.sec.gov and on our website.
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, severance expense 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 December 31, |
|
Twelve Months Ended December 31, |
| |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| Revenues: |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
134,598 |
|
|
$ |
132,080 |
|
|
$ |
451,271 |
|
|
$ |
603,815 |
|
| Revenues
- affiliates |
|
25,126 |
|
|
33,665 |
|
|
97,452 |
|
|
94,658 |
|
| Total
revenues |
|
159,724 |
|
|
165,745 |
|
|
548,723 |
|
|
698,473 |
|
| |
|
|
|
|
|
|
|
|
| Expenses: |
|
|
|
|
|
|
|
|
| Cost of
natural gas and liquids sold |
|
122,236 |
|
|
118,046 |
|
|
395,874 |
|
|
517,157 |
|
|
Operations and maintenance |
|
16,069 |
|
|
21,001 |
|
|
70,242 |
|
|
82,529 |
|
|
Depreciation and amortization |
|
38,049 |
|
|
18,358 |
|
|
106,947 |
|
|
70,814 |
|
| General
and administrative |
|
5,757 |
|
|
6,414 |
|
|
28,546 |
|
|
30,026 |
|
|
Impairment of assets |
|
— |
|
|
6,874 |
|
|
476 |
|
|
7,067 |
|
| Loss
(gain) on sale of assets, net |
|
987 |
|
|
270 |
|
|
(11,768 |
) |
|
416 |
|
| Total
expenses |
|
183,098 |
|
|
170,963 |
|
|
590,317 |
|
|
708,009 |
|
| |
|
|
|
|
|
|
|
|
| Loss from
operations |
|
(23,374 |
) |
|
(5,218 |
) |
|
(41,594 |
) |
|
(9,536 |
) |
| Other income
(expense): |
|
|
|
|
|
|
|
|
| Equity in
losses of joint venture investments |
|
(10,466 |
) |
|
(2,730 |
) |
|
(21,123 |
) |
|
(13,452 |
) |
| Interest
expense |
|
(8,565 |
) |
|
(8,651 |
) |
|
(35,166 |
) |
|
(32,738 |
) |
| Write-off
of deferred financing costs |
|
(1,006 |
) |
|
— |
|
|
(1,006 |
) |
|
— |
|
| Gain on
legal settlements |
|
3,939 |
|
|
— |
|
|
3,939 |
|
|
— |
|
| Total
other expense |
|
(16,098 |
) |
|
(11,381 |
) |
|
(53,356 |
) |
|
(46,190 |
) |
| Loss before income tax
benefit |
|
(39,472 |
) |
|
(16,599 |
) |
|
(94,950 |
) |
|
(55,726 |
) |
| Income tax benefit |
|
— |
|
|
120 |
|
|
2 |
|
|
233 |
|
| Net loss |
|
$ |
(39,472 |
) |
|
$ |
(16,479 |
) |
|
$ |
(94,948 |
) |
|
$ |
(55,493 |
) |
| General partner unit
in-kind distribution |
|
(9 |
) |
|
— |
|
|
(47 |
) |
|
(164 |
) |
| Net loss attributable
to Holdings |
|
— |
|
|
— |
|
|
— |
|
|
(4,258 |
) |
| Net loss attributable
to partners |
|
$ |
(39,481 |
) |
|
$ |
(16,479 |
) |
|
$ |
(94,995 |
) |
|
$ |
(51,399 |
) |
| |
|
|
|
|
|
|
|
|
| Earnings per unit and
distributions declared |
|
|
|
|
|
|
|
|
| Net loss allocated to
limited partner common units |
|
$ |
(21,705 |
) |
|
$ |
(4,799 |
) |
|
$ |
(50,612 |
) |
|
$ |
(24,790 |
) |
| Weighted average number
of limited partner common units outstanding |
|
37,265 |
|
|
28,372 |
|
|
34,161 |
|
|
26,781 |
|
| Basic and diluted loss
per common unit |
|
$ |
(0.58 |
) |
|
$ |
(0.17 |
) |
|
$ |
(1.48 |
) |
|
$ |
(0.93 |
) |
| |
|
|
|
|
|
|
|
|
| Net loss allocated to
limited partner subordinated units |
|
$ |
(7,111 |
) |
|
$ |
(2,065 |
) |
|
$ |
(18,089 |
) |
|
$ |
(11,300 |
) |
| Weighted average number
of limited partner subordinated units outstanding |
|
12,214 |
|
|
12,214 |
|
|
12,214 |
|
|
12,214 |
|
| Basic and diluted loss
per subordinated unit |
|
$ |
(0.58 |
) |
|
$ |
(0.17 |
) |
|
$ |
(1.48 |
) |
|
$ |
(0.93 |
) |
| Distributions declared
and paid per common unit |
|
$ |
— |
|
|
$ |
0.40 |
|
|
$ |
— |
|
|
$ |
1.60 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SOUTHCROSS ENERGY PARTNERS, L.P. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (In thousands, except for unit data) |
| (Unaudited) |
| |
|
|
|
|
| |
|
December 31, 2016 |
|
December 31, 2015 |
|
ASSETS |
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and
cash equivalents |
|
$ |
21,226 |
|
|
$ |
11,348 |
|
| Trade
accounts receivable |
|
51,894 |
|
|
39,585 |
|
| Accounts
receivable - affiliates |
|
7,976 |
|
|
49,734 |
|
| Prepaid
expenses |
|
2,751 |
|
|
3,915 |
|
| Other
current assets |
|
4,343 |
|
|
1,256 |
|
| Total
current assets |
|
88,190 |
|
|
105,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| Property, plant and
equipment, net |
|
971,286 |
|
|
1,066,001 |
|
| Investments in joint
ventures |
|
124,096 |
|
|
140,526 |
|
| Other assets |
|
2,504 |
|
|
6,595 |
|
| Total
assets |
|
$ |
1,186,076 |
|
|
$ |
1,318,960 |
|
| |
|
|
|
|
| LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
|
| Current
liabilities: |
|
|
|
|
| Accounts
payable and accrued liabilities |
|
$ |
50,639 |
|
|
$ |
66,458 |
|
| Accounts
payable - affiliates |
|
524 |
|
|
7,871 |
|
| Current
portion of long-term debt |
|
4,500 |
|
|
4,500 |
|
| Other
current liabilities |
|
10,976 |
|
|
10,406 |
|
| Total
current liabilities |
|
66,639 |
|
|
89,235 |
|
| |
|
|
|
|
| Long-term debt |
|
543,872 |
|
|
604,518 |
|
| Other non-current
liabilities |
|
11,936 |
|
|
3,871 |
|
| Total
liabilities |
|
622,447 |
|
|
697,624 |
|
| |
|
|
|
|
| Commitments and
contingencies |
|
|
|
|
| |
|
|
|
|
| Partners' capital: |
|
|
|
|
| Common
units (48,502,090 and 28,420,619 units outstanding as of December
31, 2016 and December 31, 2015, respectively) |
|
255,124 |
|
|
271,236 |
|
| Class B
Convertible units (17,105,875 and 15,958,990 units issued and
outstanding as of December 31, 2016 and December 31, 2015) |
|
278,508 |
|
|
300,596 |
|
|
Subordinated units (12,213,713 units issued and outstanding as of
December 31, 2016 and 2015) |
|
19,240 |
|
|
37,920 |
|
| General
partner interest |
|
10,757 |
|
|
11,584 |
|
| Total
partners' capital |
|
563,629 |
|
|
621,336 |
|
| Total
liabilities and partners' capital |
|
$ |
1,186,076 |
|
|
$ |
1,318,960 |
|
| |
|
|
|
|
|
|
|
|
| SOUTHCROSS ENERGY PARTNERS, L.P. |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
| (In thousands) (Unaudited) |
| |
| |
|
Twelve Months Ended December 31, |
| |
|
2016 |
|
2015 |
| Cash flows from
operating activities: |
|
|
|
|
| Net loss |
|
$ |
(94,948 |
) |
|
$ |
(55,493 |
) |
| Adjustments to
reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
Depreciation and amortization |
|
106,947 |
|
|
70,814 |
|
|
Unit-based compensation |
|
3,523 |
|
|
4,573 |
|
|
Amortization of deferred financing costs and PIK interest |
|
3,614 |
|
|
3,494 |
|
| Loss
(gain) on sale of assets, net |
|
(11,768 |
) |
|
416 |
|
|
Unrealized loss (gain) on financial instruments |
|
(147 |
) |
|
110 |
|
| Equity in
losses of joint venture investments |
|
21,123 |
|
|
13,452 |
|
|
Distribution from joint venture investment |
|
740 |
|
|
500 |
|
|
Impairment of assets |
|
476 |
|
|
7,067 |
|
| Gain on
legal settlements |
|
(2,375 |
) |
|
— |
|
| Write-off
of deferred financing costs |
|
1,006 |
|
|
— |
|
| Other,
net |
|
(310 |
) |
|
(82 |
) |
| Changes
in operating assets and liabilities: |
|
|
|
|
| Trade
accounts receivable, including affiliates |
|
31,554 |
|
|
(3,069 |
) |
| Prepaid
expenses and other current assets |
|
947 |
|
|
(495 |
) |
| Other
non-current assets |
|
(358 |
) |
|
296 |
|
| Accounts
payable and accrued liabilities |
|
(18,234 |
) |
|
(24,559 |
) |
| Other
liabilities, including affiliates |
|
9,112 |
|
|
1,701 |
|
| Net cash
provided by operating activities |
|
50,902 |
|
|
18,725 |
|
| Cash flows from
investing activities: |
|
|
|
|
| Capital
expenditures |
|
(26,066 |
) |
|
(108,698 |
) |
| Insurance
proceeds from property damage claims, net of expenditures |
|
125 |
|
|
78 |
|
| Net
proceeds from sales of assets |
|
22,470 |
|
|
4,693 |
|
|
Investment contribution to joint venture investments |
|
(5,433 |
) |
|
(8,910 |
) |
|
Consideration paid for Holdings' drop-down acquisition |
|
— |
|
|
(15,000 |
) |
| Net cash
used in investing activities |
|
(8,904 |
) |
|
(127,837 |
) |
| Cash flows from
financing activities: |
|
|
|
|
|
Borrowings under our credit facility |
|
11,210 |
|
|
187,695 |
|
|
Repayments under our credit facility |
|
(70,350 |
) |
|
(36,000 |
) |
|
Repayments under our term loan agreement |
|
(4,500 |
) |
|
(4,500 |
) |
| Payments
on capital lease obligations |
|
(419 |
) |
|
(528 |
) |
| Financing
costs |
|
(1,366 |
) |
|
(698 |
) |
| Tax
withholdings on unit-based compensation vested units |
|
(138 |
) |
|
— |
|
|
Contributions from general partner |
|
— |
|
|
1,301 |
|
| Common
unit issuances to Holdings for equity contributions |
|
29,416 |
|
|
— |
|
| Payments
of distributions and distribution equivalent rights |
|
— |
|
|
(46,915 |
) |
| 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 adjustments |
|
4,053 |
|
|
1,023 |
|
| Other,
net |
|
234 |
|
|
(425 |
) |
| Net cash
provided by (used in) financing activities |
|
(32,120 |
) |
|
118,811 |
|
| |
|
|
|
|
| Net increase in cash
and cash equivalents |
|
9,878 |
|
|
9,699 |
|
| Cash and cash
equivalents — Beginning of period |
|
11,348 |
|
|
1,649 |
|
| Cash and cash
equivalents — End of period |
|
$ |
21,226 |
|
|
$ |
11,348 |
|
| |
|
|
|
|
|
|
|
|
| SOUTHCROSS ENERGY PARTNERS, L.P. |
| SELECTED FINANCIAL AND OPERATIONAL DATA |
| (In thousands, except for operating
data) |
| (Unaudited) |
|
|
| |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
| |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| Financial
data: |
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
18,398 |
|
|
$ |
24,892 |
|
|
$ |
69,527 |
|
|
$ |
83,883 |
|
| |
|
|
|
|
|
|
|
|
| Maintenance capital
expenditures |
|
$ |
630 |
|
|
$ |
2,650 |
|
|
$ |
4,711 |
|
|
$ |
11,618 |
|
| Growth capital
expenditures |
|
8,107 |
|
|
8,740 |
|
|
21,355 |
|
|
93,718 |
|
| |
|
|
|
|
|
|
|
|
| Operating
data: |
|
|
|
|
|
|
|
|
| Average volume of
processed gas (MMcf/d) |
|
287 |
|
|
437 |
|
|
312 |
|
|
434 |
|
| Average volume of NGLs
produced (Bbls/d) |
|
30,987 |
|
|
43,234 |
|
|
32,271 |
|
|
43,234 |
|
| Average daily
throughput Mississippi/Alabama (MMcf/d) |
|
158 |
|
|
156 |
|
|
160 |
|
|
145 |
|
| |
|
|
|
|
|
|
|
|
| Realized prices on
natural gas volumes ($/Mcf) |
|
$ |
2.95 |
|
|
$ |
2.51 |
|
|
$ |
2.34 |
|
|
$ |
3.16 |
|
| Realized prices on NGL
volumes ($/gal) |
|
0.37 |
|
|
0.36 |
|
|
0.34 |
|
|
0.36 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| SOUTHCROSS ENERGY PARTNERS, L.P. |
| RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
| (In thousands) |
| (Unaudited) |
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
| |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| Net cash
provided by operating activities |
|
$ |
9,301 |
|
|
$ |
(5,783 |
) |
|
$ |
50,902 |
|
|
$ |
18,725 |
|
| Add (deduct): |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
(38,049 |
) |
|
(18,358 |
) |
|
(106,947 |
) |
|
(70,814 |
) |
|
Unit-based compensation |
|
(888 |
) |
|
(1,060 |
) |
|
(3,523 |
) |
|
(4,573 |
) |
|
Amortization of deferred financing costs and PIK interest |
|
(818 |
) |
|
(879 |
) |
|
(3,614 |
) |
|
(3,494 |
) |
| Gain
(loss) on sale of assets, net |
|
(987 |
) |
|
(270 |
) |
|
11,768 |
|
|
(416 |
) |
|
Unrealized gain (loss) on financial instruments |
|
31 |
|
|
179 |
|
|
147 |
|
|
(110 |
) |
| Equity in
losses of joint venture investments |
|
(10,466 |
) |
|
(2,730 |
) |
|
(21,123 |
) |
|
(13,452 |
) |
|
Impairment of assets |
|
— |
|
|
(6,874 |
) |
|
(476 |
) |
|
(7,067 |
) |
|
Distribution from joint venture investment |
|
— |
|
|
— |
|
|
(740 |
) |
|
(500 |
) |
| Gain on
legal settlements |
|
2,375 |
|
|
— |
|
|
2,375 |
|
|
— |
|
| Write-off
of deferred financing costs |
|
(1,006 |
) |
|
— |
|
|
(1,006 |
) |
|
— |
|
| Other,
net |
|
64 |
|
|
13 |
|
|
310 |
|
|
82 |
|
| Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Trade
accounts receivable, including affiliates |
|
14,890 |
|
|
8,682 |
|
|
(31,554 |
) |
|
3,069 |
|
| Prepaid
expenses and other current assets |
|
(1,603 |
) |
|
(1,021 |
) |
|
(947 |
) |
|
495 |
|
| Other
non-current assets |
|
295 |
|
|
(219 |
) |
|
358 |
|
|
(296 |
) |
| Accounts
payable and accrued expenses |
|
(6,417 |
) |
|
10,379 |
|
|
18,234 |
|
|
24,559 |
|
| Other
liabilities, including affiliates |
|
(6,194 |
) |
|
1,462 |
|
|
(9,112 |
) |
|
(1,701 |
) |
| Net
loss |
|
$ |
(39,472 |
) |
|
$ |
(16,479 |
) |
|
$ |
(94,948 |
) |
|
$ |
(55,493 |
) |
| Add (deduct): |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
$ |
38,049 |
|
|
$ |
18,358 |
|
|
$ |
106,947 |
|
|
$ |
70,814 |
|
| Interest
expense |
|
8,565 |
|
|
8,651 |
|
|
35,166 |
|
|
32,738 |
|
|
Unrealized loss on commodity swap derivatives |
|
— |
|
|
237 |
|
|
— |
|
|
111 |
|
| Revenue
deferral adjustment |
|
754 |
|
|
754 |
|
|
3,016 |
|
|
3,016 |
|
|
Unit-based compensation |
|
888 |
|
|
1,060 |
|
|
3,523 |
|
|
4,573 |
|
| Income
tax benefit |
|
— |
|
|
(120 |
) |
|
(2 |
) |
|
(233 |
) |
| Loss
(gain) on sale of assets, net |
|
987 |
|
|
270 |
|
|
(11,768 |
) |
|
416 |
|
| Major
litigation costs, net of recoveries |
|
79 |
|
|
4 |
|
|
495 |
|
|
513 |
|
| Equity in
losses of joint venture investments |
|
10,466 |
|
|
2,730 |
|
|
21,123 |
|
|
13,452 |
|
| Severance
expense |
|
456 |
|
|
222 |
|
|
472 |
|
|
956 |
|
| Retention
bonus funded by Holdings |
|
474 |
|
|
— |
|
|
3,168 |
|
|
— |
|
| Valley
Wells' operating expense cap adjustments |
|
— |
|
|
1,647 |
|
|
2,406 |
|
|
2,670 |
|
| Fees
related to Equity Cure Agreement |
|
61 |
|
|
— |
|
|
650 |
|
|
— |
|
|
Distribution from joint venture investment |
|
— |
|
|
— |
|
|
740 |
|
|
500 |
|
|
Transaction-related costs |
|
— |
|
|
698 |
|
|
6 |
|
|
2,483 |
|
|
Impairment of assets |
|
— |
|
|
6,874 |
|
|
476 |
|
|
7,067 |
|
| Gain on
legal settlements |
|
(3,939 |
) |
|
— |
|
|
(3,939 |
) |
|
— |
|
| Write-off
of deferred financing costs |
|
1,006 |
|
|
— |
|
|
1,006 |
|
|
— |
|
| Other,
net |
|
24 |
|
|
(14 |
) |
|
990 |
|
|
300 |
|
| Adjusted
EBITDA |
|
$ |
18,398 |
|
|
$ |
24,892 |
|
|
$ |
69,527 |
|
|
$ |
83,883 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Southcross Energy Partners, L.P.
Mallory Biegler, 214-979-3720
Investor Relations
investorrelations@southcrossenergy.com