Phillips 66 Partners LP (NYSE:PSXP) announces first-quarter adjusted earnings of $18.3 million, which includes one month's financial results of the Gold Line products system and Medford Spheres (collectively referred to as the "acquired assets"). Including the results of the acquired assets prior to their acquisition on March 1, 2014 ("predecessor results"), the partnership's net income was $28.0 million.
Distributable cash flow, including one month's results of the acquired assets, was $23.3 million, a 31 percent increase compared with the fourth quarter of 2013. Excluding predecessor results, adjusted EBITDA for first-quarter 2014 was $21.5 million.
“Our commitment to growing the partnership was demonstrated by our successful completion of a significant post-IPO acquisition,” said Greg Garland, Phillips 66 Partners chairman and CEO. “We increased our distribution by 22 percent this quarter and are pursuing additional investment opportunities to deliver top-quartile distribution growth.”
Excluding predecessor results, total adjusted revenues for the first quarter were $36.0 million, up $6.0 million from the fourth quarter of 2013. The increase primarily resulted from one month of post-acquisition revenues from the acquired assets, partially offset by lower pipeline throughput and terminal volumes on the Sweeny to Pasadena products system due to maintenance activities at Phillips 66's Sweeny Refinery. Including predecessor results, total reported revenues were $51.9 million in the first quarter of 2014.
Excluding predecessor results, total adjusted costs were $17.4 million, up $4.5 million from the fourth quarter of last year. The increase was primarily driven by post-acquisition costs from the acquired assets, as well as transaction costs associated with the acquisition. The increase also reflects interest expense associated with a 5-year, $160 million note payable to Phillips 66 the partnership assumed as part of the acquisition. Including predecessor results, total reported costs were $23.6 million in the first quarter of 2014.
On April 23, 2014, the board of directors of our general partner declared a quarterly cash distribution of $0.2743 per limited partner unit. This distribution represents a 22 percent increase over the previous quarterly distribution of $0.2248 per unit, and is 29 percent above the partnership's minimum quarterly distribution of $0.2125 per unit. Together with the general partner distributions, the total distribution will be $21.1 million.