MarkWest Energy Partners Reports Record Second Quarter Results And Announces Plans To Form A Joint Venture With Kinder Morgan To Support Northern Ohio Rich-Gas Development And NGL Pipeline To Gulf Coast
MarkWest Energy Partners, L.P. (NYSE: MWE) (the Partnership) today reported record quarterly cash available for distribution to common unitholders, or distributable cash flow (DCF), of $128.4 million for the three months ended June 30, 2013, and $238.2 million for the six months ended June 30, 2013. DCF for the three months ended June 30, 2013 represents 108 percent coverage of the second quarter distribution of $118.4 million or $0.84 per common unit, which will be paid to unitholders on August 14, 2013. The second quarter 2013 distribution represents an increase of $0.01 per common unit or 1.2 percent over the first quarter 2013 distribution and an increase of $0.04 per common unit or 5.0 percent compared to the second quarter 2012 distribution. As a Master Limited Partnership, cash distributions to common unitholders are largely determined based on DCF. A reconciliation of DCF to net income, the most directly comparable GAAP financial measure, is provided within the financial tables of this press release.
The Partnership reported Adjusted EBITDA for the three and six months ended June 30, 2013, of $156.1 million and $296.5 million, respectively, as compared to $121.9 million and $275.0 million for the three and six months ended June 30, 2012. The Partnership believes the presentation of Adjusted EBITDA provides useful information because it is commonly used by investors in Master Limited Partnerships to assess financial performance and operating results of ongoing business operations. A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure, is provided within the financial tables of this press release.
The Partnership reported income before provision for income tax for the three and six months ended June 30, 2013, of $101.8 million and $87.2 million, respectively. Income before provision for income tax includes non-cash gains associated with the change in fair value of derivative instruments of $37.3 million and $46.3 million for the three and six months ended June 30, 2013, a gain of $38.2 million related to the divestiture of gathering assets in the Marcellus Shale for the three months ended June 30, 2013 and a loss associated with the redemption of debt of $38.5 million for the six months ended June 30, 2013. Excluding these items, income before provision for income tax for the three and six months ended June 30, 2013 would have been $26.3 million and $41.2 million, respectively.
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