Fourth Quarter 2012 Revenue Highlights
Revenues for the quarter were $81.4 million, a $12.3 million increase compared to the fourth quarter of 2011. The revenue increase was due to increased pipeline shipments, revenues attributable to our July 2012 and November 2011 acquisitions, the effect of annual tariff increases and an increase of $2.1 million in previously deferred revenue realized under our guaranteed shipping contracts, partially offset by the crude oil pipeline settlement of $5.5 million with HollyFrontier in the fourth quarter of 2011. Overall pipeline volumes were up 1% compared to the fourth quarter of 2011.
- Revenues from our refined product pipelines were $30.6 million, an increase of $6.7 million primarily due to increased refined pipeline shipments, revenues attributable to UNEV, annual tariff increases and an increase of $1.8 million in previously deferred revenue realized. Shipments averaged 182.3 thousand barrels per day (“mbpd”) compared to 163.5 mbpd for the fourth quarter of 2011 .
- Revenues from our intermediate pipelines were $7.5 million, an increase of $1.2 million primarily due to increased shipments on our intermediate lines serving the Navajo refinery and an increase of $0.3 million in previously deferred revenue realized. Shipments averaged 115.8 mbpd compared to 128.4 mbpd for the fourth quarter of 2011. The overall volume decrease was attributable to a scheduled refinery turnaround that reduced volumes on our Tulsa interconnect pipelines.
- Revenues from our crude pipelines were $12.0 million, a decrease of $5.2 million, on shipments averaging 174.4 mbpd compared to 174.2 mbpd for the fourth quarter of 2011. Revenues in 2011 included $5.5 million attributable to a crude oil pipeline settlement with HollyFrontier in October 2011.
- Revenues from terminal, tankage and loading rack fees were $31.3 million, an increase of $9.7 million compared to the fourth quarter of 2011. This includes $7.2 million of increased throughput revenues attributable to our assets acquired in November 2011 that serve HollyFrontier's El Dorado and Cheyenne refineries. Refined products terminalled in our facilities increased to an average of 343.3 mbpd compared to 300.8 mbpd for the fourth quarter of 2011.
Revenues for the three months ended December 31, 2012 include the recognition of $4.6 million of prior shortfalls billed to shippers in 2011 and 2012. As of December 31, 2012, deferred revenue in our consolidated balance sheet was $7.8 million. Such deferred revenue will be recognized in earnings either as payment for shipments in excess of guaranteed levels, if and to the extent the pipeline system will not have the necessary capacity for shipments in excess of guaranteed levels, or when shipping rights expire unused over the contractual make-up period.
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