SAN ANTONIO, Aug. 11, 2014 /PRNewswire/ -- Valero Energy
Partners LP (NYSE: VLP, the Partnership), today reported second
quarter 2014 net income of $12.2
million, or $0.21 per limited
partner unit. The Partnership generated earnings before
interest, income taxes, depreciation, and amortization (EBITDA) of
$15.6 million and distributable cash
flow of $15.7 million, and had a
coverage ratio of 1.20 in the second quarter of 2014.
Second quarter 2014 revenues were $23.7
million versus second quarter 2013 revenues of $22.9 million. The increase was related
primarily to higher throughput volumes in the Port Arthur Logistics
System, which were partially offset by lower throughput volumes in
the Memphis Logistics System.
Total operating expenses in the second quarter of 2014 were
$5.7 million, general and
administrative expenses were $2.9
million, and depreciation expense was $3.0 million. Combined, these expenses were
$1.7 million greater than those for
the second quarter of 2013, mainly due to incremental costs related
to the management fee charged by Valero Energy Corporation,
effective with the Partnership's initial public offering of common
units in December 2013, and
additional costs of operating as a separate publicly traded limited
partnership.
As of June 30, 2014, the
Partnership had $682 million of total
liquidity consisting of $382 million
in cash and cash equivalents plus $300
million in an undrawn revolving credit facility.
"Our results for the second quarter were solid," said Chairman
and Chief Executive Officer Joe
Gorder. "We increased the Partnership's distribution by
nearly 5 percent to $0.2225 per unit,
and subsequent to the close of the quarter, we completed our first
acquisition of assets. These actions are consistent with our
previously communicated growth strategy for the
Partnership."
On July 1, 2014, the Partnership
closed its acquisition of the Texas Crude Systems Business from
subsidiaries of Valero Energy Corporation for total cash
consideration of $154 million.
The acquired assets included the McKee Crude System, the Three
Rivers Crude System, and the Wynnewood Products System.
The Partnership's senior management will host a conference call
at 3 p.m. ET (2 p.m. CT) today to discuss this earnings
release. A live broadcast of the conference call will be
available on the Partnership's web site at
www.valeroenergypartners.com.
About Valero Energy Partners LP
Valero Energy Partners LP is a fee-based, growth-oriented,
traditional master limited partnership formed by Valero Energy
Corporation to own, operate, develop, and acquire crude oil and
refined petroleum products pipelines, terminals, and other
transportation and logistics assets. With headquarters in
San Antonio, the Partnership's
assets include crude oil and refined petroleum products pipeline
and terminal systems in the Gulf Coast and Mid-Continent regions of
the United States that are
integral to the operations of several of Valero's refineries.
Contacts
Investors:
John Locke, Executive Director –
Investor Relations, 210-345-3077
Karen Ngo, Manager – Investor
Relations, 210-345-4574
Media:
Bill Day, Vice President –
Communications, 210-345-2928
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Safe-Harbor Statement
This release contains forward-looking statements within the meaning
of federal securities laws. These statements discuss future
expectations, contain projections of results of operations or of
financial condition or state other forward-looking information. You
can identify forward-looking statements by words such as
"anticipate," "believe," "estimate," "expect," "forecast,"
"project," "could," "may," "should," "would," "will" or other
similar expressions that convey the uncertainty of future events or
outcomes. These forward-looking statements are not guarantees of
future performance and are subject to risks, uncertainties and
other factors, some of which are beyond the Partnership's control
and are difficult to predict. These statements are often based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including examination of historical operating trends
made by the management of the Partnership. Although the Partnership
believes that these assumptions were reasonable when made, because
assumptions are inherently subject to significant uncertainties and
contingencies, which are difficult or impossible to predict
and are beyond its control, the Partnership cannot give assurance
that it will achieve or accomplish these expectations, beliefs or
intentions. When considering these forward-looking
statements, you should keep in mind the risk factors and other
cautionary statements contained in the Partnership's filings with
the U.S. Securities and Exchange Commission, including the Form S-1
and prospectus relating to the initial public offering of the
Partnership's common units and the Partnership's annual report on
Form 10-K for the year ended December 31,
2013. These risks could cause the Partnership's actual
results to differ materially from those contained in any
forward-looking statement.
VALERO ENERGY
PARTNERS LP
|
EARNINGS
RELEASE
|
(In Thousands,
Except per Unit Amounts, per Barrel Amounts, and
Ratios)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Statement of
income data (a):
|
|
|
|
|
|
|
Operating revenues –
related party
|
|
$23,660
|
|
$22,865
|
|
$45,191
|
|
$46,343
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Operating
expenses (b)
|
|
5,738
|
|
5,551
|
|
11,464
|
|
9,847
|
General and
administrative expenses (c)
|
|
2,848
|
|
1,357
|
|
5,443
|
|
2,414
|
Depreciation
expense (d)
|
|
3,024
|
|
2,984
|
|
6,082
|
|
6,453
|
Total costs
and expenses
|
|
11,610
|
|
9,892
|
|
22,989
|
|
18,714
|
Operating
income
|
|
12,050
|
|
12,973
|
|
22,202
|
|
27,629
|
Other income, net
(e)
|
|
491
|
|
24
|
|
1,139
|
|
50
|
Interest expense
(f)
|
|
(221)
|
|
(47)
|
|
(449)
|
|
(102)
|
Income before income
taxes
|
|
12,320
|
|
12,950
|
|
22,892
|
|
27,577
|
Income tax expense
(g)
|
|
120
|
|
1,337
|
|
210
|
|
1,444
|
Net income
|
|
12,200
|
|
$11,613
|
|
22,682
|
|
$26,133
|
Less:
General partner's interest in net income
|
|
244
|
|
|
|
|
454
|
|
|
|
Limited partners'
interest in net income
|
|
$11,956
|
|
|
|
|
$22,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
limited partner unit (basic
and diluted):
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
units
|
|
$0.21
|
|
|
|
|
$0.39
|
|
|
|
Subordinated
units
|
|
$0.21
|
|
|
|
|
$0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
limited partner units outstanding (basic and
diluted):
|
|
|
|
|
|
|
|
|
|
|
|
|
Common units –
public
|
|
17,250
|
|
|
|
|
17,250
|
|
|
|
Common units –
Valero
|
|
11,540
|
|
|
|
|
11,540
|
|
|
|
Subordinated
units – Valero
|
|
28,790
|
|
|
|
|
28,790
|
|
|
|
VALERO ENERGY
PARTNERS LP
|
EARNINGS
RELEASE
|
(In Thousands,
Except per Unit Amounts, per Barrel Amounts, and
Ratios)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Operating
highlights:
|
|
|
|
|
|
|
|
|
Pipeline
transportation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline
transportation revenues
|
|
$11,128
|
|
$13,647
|
|
$21,608
|
|
$27,853
|
Pipeline
transportation throughput (BPD) (h)
|
|
622,209
|
|
571,026
|
|
598,492
|
|
581,307
|
Average
pipeline transportation revenue per barrel (i)
|
|
$0.20
|
|
$0.26
|
|
$0.20
|
|
$0.26
|
Terminaling:
|
|
|
|
|
|
|
|
|
|
|
|
|
Terminaling
revenues
|
|
$12,532
|
|
$4,293
|
|
$23,583
|
|
$8,490
|
Terminaling
throughput (BPD)
|
|
499,424
|
|
132,962
|
|
469,297
|
|
132,603
|
Average
terminaling revenue per barrel (i)
|
|
$0.28
|
|
$0.35
|
|
$0.28
|
|
$0.35
|
Storage revenues
(j)
|
|
$—
|
|
$4,925
|
|
$—
|
|
$10,000
|
Total
operating revenues – related party
|
|
$23,660
|
|
$22,865
|
|
$45,191
|
|
$46,343
|
Capital
expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance
|
|
$1,005
|
|
$289
|
|
$1,869
|
|
$547
|
Expansion
|
|
1,355
|
|
700
|
|
1,355
|
|
1,607
|
Total capital expenditures
|
|
2,360
|
|
989
|
|
3,224
|
|
2,154
|
Less: Capital expenditures attributable to Predecessor (a)
|
|
—
|
|
989
|
|
—
|
|
2,154
|
Capital
expenditures attributable to Partnership
|
|
$2,360
|
|
$—
|
|
$3,224
|
|
$—
|
Other financial
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
declared per unit
|
|
$0.2225
|
|
n/a
|
|
$0.4350
|
|
n/a
|
EBITDA
attributable to Partnership (k)
|
|
$15,565
|
|
n/a
|
|
$29,423
|
|
n/a
|
Distributable
cash flow (k)
|
|
$15,650
|
|
n/a
|
|
$29,215
|
|
n/a
|
Distribution
declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partner units – public
|
|
$3,839
|
|
n/a
|
|
$7,506
|
|
n/a
|
Limited partner units – Valero
|
|
8,974
|
|
n/a
|
|
17,544
|
|
n/a
|
General partner units – Valero
|
|
261
|
|
n/a
|
|
511
|
|
n/a
|
Total distribution declared
|
|
$13,074
|
|
n/a
|
|
$25,561
|
|
n/a
|
Coverage ratio
(k)
|
|
1.20x
|
|
n/a
|
|
1.14x
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
|
December 31,
2013
|
Balance sheet data
(a):
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
$381,815
|
|
$375,118
|
Total
assets
|
|
|
|
|
|
|
|
658,771
|
|
656,442
|
Total capital
lease obligations
|
|
|
|
|
|
|
|
3,441
|
|
4,127
|
Partners'
capital
|
|
|
|
|
|
|
|
649,648
|
|
641,591
|
Working
capital
|
|
|
|
|
|
|
|
382,903
|
|
372,230
|
VALERO ENERGY
PARTNERS LP
|
EARNINGS
RELEASE
|
(In Thousands,
Except per Unit Amounts, per Barrel Amounts, and
Ratios)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Reconciliation of
net income to EBITDA and
distributable cash flow (k):
|
|
|
|
|
|
|
|
|
Net income
|
|
$12,200
|
|
$11,613
|
|
$22,682
|
|
$26,133
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
3,024
|
|
2,984
|
|
6,082
|
|
6,453
|
Interest
expense
|
|
221
|
|
47
|
|
449
|
|
102
|
Income tax
expense
|
|
120
|
|
1,337
|
|
210
|
|
1,444
|
EBITDA
|
|
15,565
|
|
15,981
|
|
29,423
|
|
34,132
|
Less:
Predecessor EBITDA prior to IPO on
December 16, 2013 (a)
|
|
—
|
|
15,981
|
|
—
|
|
34,132
|
EBITDA attributable
to Partnership
|
|
15,565
|
|
$—
|
|
29,423
|
|
$—
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
related to minimum throughput Commitments
|
|
475
|
|
|
|
|
507
|
|
|
|
Projects
prefunded by Valero
|
|
853
|
|
|
|
|
1,628
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash interest
paid
|
|
229
|
|
|
|
|
465
|
|
|
|
Income taxes
paid
|
|
9
|
|
|
|
|
9
|
|
|
|
Maintenance
capital expenditures
|
|
1,005
|
|
|
|
|
1,869
|
|
|
|
Distributable
cash flow
|
|
$15,650
|
|
|
|
|
$29,215
|
|
|
|
Reconciliation of
net cash provided by operating activities to EBITDA and distributable cash flow
(k):
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities
|
|
$13,060
|
|
$15,789
|
|
$29,382
|
|
$33,563
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
current assets and current liabilities
|
|
2,191
|
|
(60)
|
|
(580)
|
|
46
|
Amortization
of fair value adjustment to
capital lease obligations
|
|
90
|
|
109
|
|
180
|
|
218
|
Amortization
of debt issuance costs
|
|
(82)
|
|
—
|
|
(164)
|
|
—
|
Unit-based
compensation expense
|
|
(25)
|
|
—
|
|
(36)
|
|
—
|
Other noncash
expense
|
|
(2)
|
|
—
|
|
(2)
|
|
—
|
Interest
expense
|
|
221
|
|
47
|
|
449
|
|
102
|
Current income
tax expense
|
|
112
|
|
96
|
|
194
|
|
203
|
EBITDA
|
|
15,565
|
|
15,981
|
|
29,423
|
|
34,132
|
Less: Predecessor EBITDA prior to IPO on December 16, 2013 (a)
|
|
—
|
|
15,981
|
|
—
|
|
34,132
|
EBITDA attributable
to Partnership
|
|
15,565
|
|
$—
|
|
29,423
|
|
$—
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
related to minimum throughput commitments
|
|
475
|
|
|
|
|
507
|
|
|
|
Projects
prefunded by Valero
|
|
853
|
|
|
|
|
1,628
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash interest
paid
|
|
229
|
|
|
|
|
465
|
|
|
|
Income taxes
paid
|
|
9
|
|
|
|
|
9
|
|
|
|
Maintenance
capital expenditures
|
|
1,005
|
|
|
|
|
1,869
|
|
|
|
Distributable cash
flow
|
|
$15,650
|
|
|
|
|
$29,215
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Comparison of
ratio of net income attributable to partners divided by total
distribution declared to coverage ratio (k):
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to partners
|
|
$12,200
|
|
n/a
|
|
$22,682
|
|
n/a
|
Total distribution
declared
|
|
$13,074
|
|
n/a
|
|
$25,561
|
|
n/a
|
Ratio of net income
attributable to partners divided by total distribution
declared
|
|
0.93x
|
|
n/a
|
|
0.89x
|
|
n/a
|
Coverage ratio:
Distributable cash flow divided by total distribution
declared
|
|
1.20x
|
|
n/a
|
|
1.14x
|
|
n/a
|
VALERO ENERGY
PARTNERS LP
|
NOTES TO EARNINGS
RELEASE
|
|
|
(a)
|
References in these
notes to the "Partnership," "we," "us," or "our" refer to Valero
Energy Partners LP, one or more of its subsidiaries, or all of them
taken as a whole for periods after December 16, 2013, the date of
completion of the Partnership's initial public offering (IPO) of
17,250,000 common units representing limited partner interests. For
periods prior to the IPO, those terms refer to Valero Energy
Partners LP Predecessor, our Predecessor for accounting purposes.
References in these notes to "Valero" may refer to Valero Energy
Corporation, one or more of its subsidiaries, or all of them taken
as a whole, other than Valero Energy Partners LP, any of its
subsidiaries, or its general partner.
On December 16, 2013,
Valero contributed certain crude oil and refined petroleum products
pipelines, terminals, and other logistics assets (the Contributed
Assets) to us and we completed the IPO of our common units,
which represented a 29.4 percent limited partner interest in
us. Valero owns the remaining 68.6 percent limited partner interest
in us and the 2 percent general partner interest.
The statement of
income data for the three and six months ended June 30, 2013
reflects the results of operations of the Contributed Assets. The
financial data for these periods are for our Predecessor. The
statement of income data for the three and six months ended
June 30, 2014 and the balance sheet data as of June 30,
2014 and December 31, 2013 reflect the results of operations,
assets, liabilities, and partners' capital of the
Partnership.
The Partnership's
results of operations may not be comparable to our Predecessor's
historical results of operations for the reasons described
below:
• Revenues. Our Predecessor
generated revenues by providing fee-based transportation and
terminaling services to Valero and by leasing certain crude oil and
refined petroleum products storage capacity to Valero. Subsequent
to the IPO, we entered into a master transportation services
agreement and a master terminal services agreement with Valero with
respect to our pipelines and terminals. Under these commercial
agreements, the historical storage capacity lease arrangements were
replaced with terminaling throughput fees. In addition, we began
charging a terminaling throughput fee for crude oil delivered to
our Lucas terminal for which we did not historically charge a
throughput fee, and we revised the rates charged for transportation
services provided by certain of our pipelines.
• General and administrative
expenses. Our Predecessor's general and administrative expenses
include direct charges for the management and operation of our
logistics assets and certain expenses allocated by Valero for
general corporate services, such as treasury, accounting, and legal
services. These expenses were charged, or allocated, to our
Predecessor based on the nature of the expenses. Effective with the
IPO, the Partnership pays a fee to Valero for the management of our
operations and general corporate services. In addition, the
Partnership incurs additional incremental general and
administrative expenses as a result of being a separate publicly
traded limited partnership.
|
(b)
|
The increase in
operating expenses for the three months ended June 30, 2014
compared to the three months ended June 30, 2013 is due to
higher insurance expense of $545,000 as a result of us acquiring
our own insurance policies. Prior to being a separate publicly
traded limited partnership, we were allocated a portion of Valero's
insurance costs. The increased insurance expense was partially
offset by a charge for sales taxes of $312,000 during the three
months ended June 30, 2013 related to the settlement of a
Texas sales tax audit that did not recur.
The increase in
operating expenses for the six months ended June 30, 2014
compared to the six months ended June 30, 2013 is due
primarily to an increase of $1.1 million in insurance expense as a
result of us acquiring our own insurance policies as described
above. In addition, maintenance expense increased $622,000
primarily due to work at our Collierville crude system, which
included repair of a crude prover and tank inspection, cleaning,
and repair work for regulatory and compliance purposes.
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(c)
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The increase in
general and administrative expenses for the three and six months
ended June 30, 2014 compared to the three and six months ended
June 30, 2013 is due primarily to $629,000 and $1.6 million,
respectively, in incremental costs related to the management fee
charged to us by Valero effective with the IPO; and $554,000 and
$1.2 million, respectively, of additional incremental costs of
being a separate publicly traded limited partnership. During the
three months ended June 30, 2014, we also incurred $308,000 in
costs related to the acquisition of the Texas Crude Systems
Business from Valero that occurred on July 1, 2014.
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(d)
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The decrease in
depreciation expense for the six months ended June 30, 2014
compared to the six months ended June 30, 2013 is due
primarily to the write-off of the remaining net book value of
$306,000 in 2013 associated with a tank at our Lucas crude system
that was no longer in service.
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(e)
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The increase in
"other income, net" for the three and six months ended
June 30, 2014 compared to the three and six months ended
June 30, 2013 is due primarily to interest income (net of bank
fees) of $258,000 and $556,000, respectively, earned on our cash
and cash equivalents; incremental income of $34,000 and $379,000,
respectively, from the sale of scrap metal; and incremental income
of $143,000 during the three months ended June 30, 2014
related to right-of-way fees collected. Prior to the IPO, our
Predecessor participated in Valero's centralized cash management
system; therefore, it held no cash or cash equivalents, and no
interest income was allocated to our Predecessor by
Valero.
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(f)
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The increase in
interest expense for the three and six months ended June 30,
2014 compared to the three and six months ended June 30, 2013
is due primarily to commitment fees and amortization of the debt
issuance costs related to the Partnership's revolving credit
facility, which was entered into in connection with the
IPO.
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(g)
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Our income tax
expense is associated with the Texas margin tax. Our effective tax
rate was 1 percent during the three and six months ended
June 30, 2014 compared to 10 percent and 5 percent during the
three and six months ended June 30, 2013, respectively. The
decrease was due primarily to deferred tax expense recorded in 2013
in connection with the initial recognition of a deferred tax
liability associated with a change in the law with respect to the
Texas margin tax. Because this was a one-time item associated with
a law change, our effective tax rate returned to previous
levels.
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(h)
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Represents the sum of
volumes transported through each separately tariffed pipeline
segment.
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(i)
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Management uses
average revenue per barrel to evaluate performance and compare
profitability to other companies in the industry. There are a
variety of ways to calculate average revenue per barrel; different
companies may calculate it in different ways. We calculate average
revenue per barrel as revenue divided by throughput for the period.
Throughput can be derived by multiplying the throughput barrels per
day (BPD) by the number of days in the period. Investors and
analysts use this financial measure to help analyze and compare
companies in the industry on the basis of operating performance.
This financial measure should not be considered as an alternative
to revenues presented in accordance with U.S. generally accepted
accounting principles (GAAP).
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(j)
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Prior to the IPO, our
Predecessor leased some of our refined petroleum products and crude
oil storage capacity to Valero. Subsequent to the IPO, under our
commercial agreements with Valero, these storage capacity lease
agreements were replaced with terminaling fees.
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(k)
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We define EBITDA as
net income before income tax expense, interest expense, and
depreciation expense. We define distributable cash flow as EBITDA
less cash payments during the period for interest, income taxes,
and maintenance capital expenditures, plus adjustments related to
minimum throughput commitments and capital projects prefunded by
Valero. We define coverage ratio as the ratio of distributable cash
flow to the total distribution declared.
EBITDA, distributable
cash flow, and coverage ratio are supplemental financial measures
that are not defined under GAAP; they may be used by management and
external users of our financial statements, such as industry
analysts, investors, lenders, and rating agencies, to
assess:
• our operating performance as compared
to other publicly traded limited partnerships in the transportation
and logistics industry, without regard to historical cost basis or,
in the case of EBITDA, financing methods;
• the ability of our business to
generate sufficient cash to support our decision 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.
We believe that the
presentation of EBITDA provides useful information to investors in
assessing our financial condition and results of operations. The
GAAP measures most directly comparable to EBITDA are net income and
net cash provided by operating activities. EBITDA should not be
considered an alternative to net income or net cash provided by
operating activities presented in accordance with GAAP. EBITDA has
important limitations as an analytical tool because it excludes
some, but not all, items that affect net income or net cash
provided by operating activities. EBITDA should not be considered
in isolation or as a substitute for analysis of our results as
reported under GAAP. Additionally, because EBITDA may be defined
differently by other companies in our industry, our definition of
EBITDA may not be comparable to similarly titled measures of other
companies, thereby diminishing its utility.
We use distributable
cash flow to measure whether we have generated from our operations,
or "earned," an amount of cash sufficient to support the payment of
the minimum quarterly distributions. Our partnership agreement
contains the concept of "operating surplus" to determine whether
our operations are generating sufficient cash to support the
distributions that we are paying, as opposed to returning capital
to our partners. Because operating surplus is a cumulative concept
(measured from the IPO date and compared to cumulative
distributions from the IPO date), we use the term distributable
cash flow to approximate operating surplus on a quarterly or
annual, rather than a cumulative, basis. As a result, distributable
cash flow is not necessarily indicative of the actual cash we have
on hand to distribute or that we are required to
distribute.
We use the coverage
ratio to reflect the relationship between our distributable cash
flow and the total distribution declared. We have also provided the
ratio of net income attributable to partners, the most directly
comparable GAAP measure to distributable cash flow, to the total
distribution declared.
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SOURCE Valero Energy Partners LP