Southcross Energy reports financial and operating results

Southcross Energy Partners, L.P. (the Partnership) has announced its 4Q14 and full year 2014 financial and operating results.

“2014 was a landmark year of growth and positive momentum for Southcross,” said John Bonn, Chief Executive Officer of Southcross’ general partner. “During the course of 2014, we completed a significant acquisition of gathering and processing assets in the active Eagle Ford Shale area and successfully completed several organic projects that resulted in significant growth of rich gas volumes on our system. Southcross today has increased stability, scale and growth potential across the Eagle Ford.”

“We believe Southcross is well positioned to manage the current commodity price environment,” added Bonn. “Growing portions of our revenue streams are fixed fee in nature. We have meaningful growth opportunities which include filling our existing processing capacity, organic growth projects and the opportunity to execute drop-down transactions that we anticipate will support distribution growth for our unit holders.”

4Q14 results

Southcross’ Adjusted EBITDA was US$20.6 million for the three month period ended 31 December 2014, compared to US$14.0 million for the same period in the prior year, and US$11.3 million for the three month period ended 30 September 2014.

Gross operating margin totalled US$37.2 million for the three month period ended 31 December 2014, compared to US$28.2 million for the same period in the prior year. Net income/(loss) was (US$2.3) million for the three month period ended 31 December 2014, compared to US$0.7 million for the same period in the prior year. Results in 4Q14 benefited from expense reductions, including an adjustment to incentive compensation accruals in response to performance results and the lower commodity price environment.

Processed gas volumes averaged 515 046 million Btu/d during the three month period ended 31 December 2014, an increase of 91% compared to 268 957 million Btu/d during the same period in the prior year. Fractionated NGLs during the three month period ended 31 December 2014 averaged 22 394 bpd, an increase of 36% compared to 16 407 bpd for the same period in the prior year.

2014 results

Southcross’ Adjusted EBITDA was US$54.5 million for the year ended 31 December 2014, compared to US$34.5 million for the year ended 31 December 2013.

Gross operating margin totalled US$121.6 million for the year ended 31 December 2014, compared to US$93.5 million for the year ended 31 December 2013. Net loss was (US$31.3) million for the year ended 31 December 2014, compared to (US$16.0) million for the year ended 31 December 2013. Results for full year 2014 were impacted by transaction and other expenses related to the August 2014 TexStar transactions.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/09032015/southcross-energy-reports-financial-and-operating-results-394/