JP Energy Partners LP Announces Third Quarter 2016 Financial Results

JP Energy Partners LP (NYSE: JPEP) ("JP Energy," "we," "our," or "us") today announced financial and operating results for the third quarter of 2016.

JP Energy reported a net loss of $6.9 million for the third quarter of 2016, compared to a net loss of $8.4 million for the third quarter of 2015, and reported Adjusted EBITDA of $7.3 million for the third quarter of 2016, compared to $10.4 million for the third quarter of 2015. Adjusted EBITDA for the third quarter of 2015 included $3.0 million of corporate overhead support from our general partner. Distributable Cash Flow was $4.7 million for the third quarter of 2016, resulting in a distribution coverage ratio for the quarter of approximately 0.4x.

For the nine months ended September 30, 2016, JP Energy reported a net loss of $12.5 million, compared to a net loss of $12.7 million for the nine months ended September 30, 2015, and reported Adjusted EBITDA of $36.3 million for the first nine months of 2016, compared to $32.7 million for the first nine months of 2015. Adjusted EBITDA for the first nine months of 2016 and 2015 included $5.0 million and $3.0 million, respectively, of corporate overhead support from our general partner. Distributable Cash Flow was $29.3 million for the first nine months of 2016, resulting in a distribution coverage ratio for the first nine months of 2016 of approximately 0.8x.

"First, I would like to discuss our recently announced proposed merger with American Midstream Partners," said J. Patrick Barley, Executive Chairman, President and Chief Executive Officer of JP Energy. "We view the deal as an attractive opportunity to combine two growing midstream franchises that will benefit from scale and diversity, commercial and expense synergies as well as improved liquidity and access to the capital markets. We are excited about the growth potential at both companies, as well as expected additional M&A and drop-down opportunities the combined company may pursue. During the third quarter, we continued to execute on our efficiency and expense reduction efforts across the business and experienced significant year-over-year Adjusted EBITDA growth across our Pipelines and Storage and Refined Products Terminals segment. We are beginning to see early signs of a production recovery around our Silver Dollar pipeline system, including by our anchor tenants. Despite these positives, we continue to work through significant volume and margin pressure in our NGL business, resulting in a decline year-over-year in EBITDA in that segment. We have been negatively impacted by a decline in oilfield service related propane volumes as well as the prolonged impact of the previous winter's unseasonably warm weather. As a result of these factors, we expect Adjusted EBITDA for full year 2016 to be at the low end of our previously disclosed $42-$48 million guidance range excluding corporate overhead support. We will continue to manage costs, grow our business and prudently use our balance sheet as we work toward the closing of the merger."

If you liked this article you might like

3 Stocks With Upcoming Ex-Dividend Dates: JPEP, SDLP, IDA

Tomorrow's Ex-Dividends To Watch: JPEP, GNL, STL

Ex-Dividends To Watch: 3 Stocks Going Ex-Dividend Tomorrow: JPEP, EVEP, EEQ

What To Sell: 3 Sell-Rated Dividend Stocks JPEP, ENBL, NAO

What To Sell: 3 Sell-Rated Dividend Stocks JPEP, LGCY, NRP