Tallgrass Energy Partners, LP (TEP) has released its financial and operating results for Q2 2014. The results have been recast to reflect the results of operations of Trailblazer Pipeline Company LLC, which TEP acquired on 1 April 2014. Net income totalled US$ 16.87 million during the reporting period, compared to US$ 13.23 million in Q2 2013. Total revenues for Q2 2014 increase to US$ 77.32 million, from US$ 69.35 million in Q2 2013.
Tallgrass President and CEO David G. Dehaemers, Jr. commented on the results: "As we expected and previously communicated on our first quarter earnings call, our second quarter coverage was lower than Q1 2014, and we continue to expect the second quarter results to be the lowest quarter during 2014. While quarterly distribution coverage is rarely linear, our coverage for the last four quarters, excluding the impact of the units issued in July 2014, was 1.18x, which represents approximately US$ 10 million of excess distributable cash generated. TEP remains committed to safe operations and delivering outstanding returns to our unit holders. Our recent offering in the equity capital markets positions us to deliver those returns through opportunities like the potential Pony Express acquisition."
Gas Transportation and Storage
Adjusted EBITDA in the Gas Transportation and Storage segment for Q2 2014 was US$ 15.1 million, an increase of US$ 3.6 million as compared to Q2 2013, primarily due to lower operating costs and expenses. The most significant decrease in costs was a reduction in costs of sales and transportation services at Trailblazer resulting from the new tariff established in the rate case that provides for recovery of compression costs. Average firm contracted transportation capacity of 1.49 billion ft3/d for Q2 2014 was comparable to 1.44 billion ft3/d for Q2 2013.
The Processing segment generated adjusted EBITDA of US$ 5.5 million for Q2 2014, representing an increase of US$ 300 000 as compared to Q2 2013. The increase was primarily due to distributions received from the fresh water transportation pipeline. However, the Processing segment’s adjusted EBITDA of US$ 5.5 million for Q2 2014 was negatively impacted by the effects of plant downtime at Douglas associated with planned maintenance and off-spec deliveries and related costs. Approximate average inlet volumes were 136 million ft3/d for the second quarter of 2014 as compared to 137 million ft3/d for Q2 2013, reflecting the impact of plant downtime, and to a lesser extent, lower than expected volumes delivered by its customers.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/18082014/tallgrass-energy-partners-q2-2014-results-730/