Shell Midstream Partners (SHLX) Misses Q1 EPS by 6c, Revenues Miss

Shell Midstream Partners (NYSE: SHLX) reported Q1 EPS of $0.36, $0.06 worse than the analyst estimate of $0.42. Revenue for the quarter came in at $121 million versus the consensus estimate of $125.35 million.

FINANCIAL HIGHLIGHTS

• Net income attributable to the Partnership was $138 million, compared to $140 million for the prior quarter.
• Net cash provided by operating activities was $162 million, compared to $139 million for the prior quarter.
• Cash available for distribution was $170 million, compared to $164 million for the prior quarter, primarily due to continued strong performance across the Gulf of Mexico portfolio, lower seasonal spending related to the Triton terminals and increased dividends from Colonial and Explorer. This increase was partially offset by the Mars storage revenue reimbursement received in the fourth quarter of 2019.
• Total cash distribution declared was $162 million, resulting in a coverage ratio of 1.0x.
• Adjusted EBITDA attributable to the Partnership was $196 million, compared to $187 million for the prior quarter.
• As of March 31, 2020, the Partnership had $292 million of consolidated cash and cash equivalents on hand.
• As of March 31, 2020, the Partnership had total debt of $2.7 billion, equating to 3.4x Debt to annualized Q1 2020 Adjusted EBITDA. Current debt levels are well within our targeted range and provide flexibility to the Partnership.

“I am pleased that we closed out our first quarter with strong delivery,” said Kevin Nichols, CEO, Shell Midstream Partners, GP LLC. “Like the entire industry, our Partnership is dealing with the dual shocks of both oversupply and demand destruction due to “Stay at Home” orders. As always, we will continue to focus on the safety and protection of our people and our assets as we remain operational. I am optimistic about Shell Midstream’s future as we lean on our resilient financial framework and diversified asset base.”

For earnings history and earnings-related data on Shell Midstream Partners (SHLX) click here.

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