Back to mobile site

Form 8-K Southcross Energy Partne For: Nov 08

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 8/14/2026

1. GLOB
2. AMAT
3. RDDT
4. ELUT
5. WDAY
6. EMAT
7. CV
8. YSS
9. SNDK
10. SMSI

November 8, 2016 6:08 AM EST



 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): November 8, 2016
 
Southcross Energy Partners, L.P.
(Exact name of registrant as specified in its charter)
 
Delaware
 
001-35719
 
45-5045230
(State or other jurisdiction
 
(Commission
 
(IRS Employer
of incorporation or
 organization)
 
File Number)
 
Identification No.)
 
1717 Main Street
Suite 5200
Dallas, Texas 75201
(Address of principal executive office) (Zip Code)
 
(214) 979-3720
(Registrant's telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 





Item 2.02 Results of Operations and Financial Condition.

On November 8, 2016, Southcross Energy Partners, L.P. (“Southcross”) announced its financial and operating results for the quarter ended September 30, 2016. A copy of the press release is attached hereto as Exhibit 99.1.

The information contained in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section.  In addition, none of such information shall be incorporated by reference in any filing made by Southcross under the Exchange Act or the Securities Act of 1933, as amended, except to the extent specifically referenced in any such filings.

Item 9.01 Financial Statements and Exhibits.
 
(d) Exhibits
 
Exhibit
 
 
Number
 
Description
99.1
 
Press Release of Southcross Energy Partners, L.P., dated November 8, 2016





SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
Southcross Energy Partners, L.P.
 
 
 
 
 
By:
Southcross Energy Partners GP, LLC,
 
 
its general partner
 
 
 
 
 
 
Dated: November 8, 2016
By:
/s/ Bret M. Allan
 
 
Name:
Bret M. Allan
 
 
Title:
Senior Vice President and Chief Financial Officer







 
EXHIBIT INDEX
 
Exhibit
Number
 
Description
99.1
 
Press Release of Southcross Energy Partners, L.P., dated November 8, 2016
 






Exhibit 99.1
southcrossenergylogoa02a08.jpg

NEWS RELEASE
Southcross Energy 1717 Main Street, Suite 5200, Dallas, Texas 75201, 214-979-3720


Southcross Energy Partners, L.P. Reports Third Quarter 2016 Results

DALLAS, Texas, November 8, 2016 - Southcross Energy Partners, L.P. (NYSE: SXE) (“Southcross” or the “Partnership”) today announced third quarter 2016 financial and operating results.

Southcross’ net loss was $32.6 million for the quarter ended September 30, 2016, compared to $9.7 million for the same period in the prior year and $7.4 million for the quarter ended June 30, 2016. Net loss for the third quarter was higher than the prior quarter loss due primarily to higher depreciation and amortization expense and lower gain on sale of assets.

Adjusted EBITDA (as defined below) was $14.8 million for the quarter ended September 30, 2016, compared to $23.6 million for the same period in the prior year and $15.6 million for the quarter ended June 30, 2016. Adjusted EBITDA for the third quarter was below the prior quarter due to lower processed gas volumes, partially offset by lower expenses.
 
Processed gas volumes during the quarter averaged 299 MMcf/d, a decrease of 32% compared to 441 MMcf/d for the same period in the prior year and a decrease of 6% compared to 319 MMcf/d for the quarter ended June 30, 2016. The sequential quarter volumetric decline primarily represents a producer that reduced volumes below the minimum volume commitment level. Any deficiency payments associated with this volumetric shortfall will be determined at the end of the year.

Southcross implemented several key initiatives during the quarter that are expected to reduce operating expenses and lower future capital expenditure requirements. These initiatives include the planned shut-down and sale of two of its older and less efficient processing facilities and the reconfiguration of assets at the Lone Star processing facility to reduce electricity costs. In 2017, Southcross expects to realize $2 million in annual cost savings and $6 million in reduced annual capital expenditure requirements. Southcross also expects to receive $12 million in proceeds in 2017 related to these activities, which includes insurance recoveries and the sale of emissions credits. These represent the initial steps of a comprehensive cost savings program that has been approved by Southcross' Board of Directors and will be realized throughout 2017.

Capital Expenditures

For the quarter ended September 30, 2016, growth capital expenditures were $3.9 million and were related primarily to work to enhance system efficiency and capability. Growth capital expenditures for the nine months ended September 30, 2016 were $13.3 million. Southcross expects that growth capital expenditures for full year 2016 will be less than $30 million.

Capital and Liquidity

As of September 30, 2016, Southcross had total outstanding debt of $561 million including $123 million under its revolving credit facility as compared to total outstanding debt of $570 million as of June 30, 2016. The reduction in debt on a sequential quarter basis is due to the use of free cash flow from the business to pay down the revolver as well as the mandatory term loan amortization payment.

1



As of September 30, 2016, we were not in compliance with the consolidated total leverage ratio of our Financial Covenants absent an equity cure of $17.0 million. We believe that we will have the ability to fund this equity cure through the Equity Cure Contribution Agreement. Management is pursuing multiple alternatives to enhance the Partnership’s liquidity, including negotiation of amendments to certain covenants and terms contained in our Revolving Credit Agreement, which may include modifications to our existing Financial Covenants.

Distributable Cash Flow

Distributable cash flow (as defined below) for the quarter ended September 30, 2016 was $5.8 million, compared to $12.7 million for the same period in the prior year and $6.7 million for the quarter ended June 30, 2016.

Conference Call Information

Southcross will hold a conference call on Tuesday, November 8, 2016, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss its third quarter 2016 financial and operating results. The call can be accessed live over the telephone by dialing (877) 705-6003 or, for international callers, (201) 493-6725. The replay of the call will be available shortly after the call and can be accessed by dialing (877) 870-5176 or, for international callers, (858) 384-5517. The passcode for the replay is 13645847. The replay of the call will be available for approximately two weeks following the call.

Interested parties may also listen to a simultaneous webcast of the call on Southcross’ website at www.southcrossenergy.com under the “Investors” section. A replay of the webcast will also be available for approximately two weeks following the call.

About Southcross Energy Partners, L.P.

Southcross Energy Partners, L.P. is a master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama and include four gas processing plants, two fractionation plants and approximately 3,100 miles of pipeline. The South Texas assets are located in or near the Eagle Ford Shale region. Southcross is headquartered in Dallas, Texas. Visit www.southcrossenergy.com for more information.

About Southcross Holdings LP

Southcross Holdings LP, through its subsidiary Southcross Holdings Borrower LP, owns 100% of Southcross Energy Partners GP, LLC, the general partner of Southcross, as well as a portion of Southcross' common units, and all of Southcross' subordinated units and Class B convertible units. Holdings also owns natural gas gathering and treating assets as well as NGL pipelines and fractionation facilities in South Texas.

Forward-Looking Statements

This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words “expect,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “will be,” “will continue,” “will likely result,” and similar expressions, or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include: the expectations, plans, strategies, objectives and growth of Southcross; and anticipated capital expenditures and Adjusted EBITDA. Although Southcross believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, Southcross can give no assurance they will prove to be correct. Forward-looking statements contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management’s control) that may cause Southcross’ actual results in

2


future periods to differ materially from anticipated or projected results. An extensive list of specific material risks and uncertainties affecting Southcross is contained in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 14, 2016 and in other documents and reports filed from time to time with the SEC. Any forward-looking statements in this press release are made as of the date hereof and Southcross undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.

Use of Non-GAAP Financial Measures

We report our financial results in accordance with accounting principles generally accepted in the United States, or GAAP. We also present the non-GAAP financial measures of Adjusted EBITDA and distributable cash flow.

We define Adjusted EBITDA as net income/loss, plus interest expense, income tax expense, depreciation and amortization expense, equity in losses of joint venture investments, certain non-cash charges (such as non-cash unit-based compensation, impairments, loss on extinguishment of debt and unrealized losses on derivative contracts), major litigation costs net of recoveries, transaction-related costs, revenue deferral adjustment, loss on sale of assets and selected charges that are unusual or non-recurring; less interest income, income tax benefit, unrealized gains on derivative contracts, equity in earnings of joint venture investments and selected gains that are unusual or non-recurring. Adjusted EBITDA should not be considered an alternative to net income, operating cash flow or any other measure of financial performance presented in accordance with GAAP.

Adjusted EBITDA is a key metric used in measuring our compliance with our financial covenants under our debt agreements and is used as a supplemental measure by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others, to assess the ability of our assets to generate cash sufficient to support our indebtedness and make future cash distributions; operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing or capital structure; and the attractiveness of capital projects and acquisitions and the overall rates of return on investment opportunities.

We define distributable cash flow as Adjusted EBITDA, plus interest income and income tax benefit, less cash paid for interest (net of capitalized costs), income tax expense and maintenance capital expenditures. We use distributable cash flow to analyze our liquidity. Distributable cash flow does not reflect changes in working capital balances. Distributable cash flow is used to assess the ability of our assets to generate cash sufficient to support our indebtedness and make future cash distributions to our unitholders; and the attractiveness of capital projects and acquisitions and the overall rates of return on alternative investment opportunities.

Adjusted EBITDA and distributable cash flow are not financial measures presented in accordance with GAAP. We believe that the presentation of these non-GAAP financial measures provides useful information to investors in assessing our financial condition, results of operations and cash flows from operations. Reconciliations of Adjusted EBITDA and distributable cash flow to their most directly comparable GAAP measure are included in this press release. Net income and net cash provided by operating activities are the GAAP measures most directly comparable to Adjusted EBITDA. The GAAP measure most directly comparable to distributable cash flow is net cash provided by operating activities. Our non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measure. Each of these non-GAAP financial measures has important limitations as an analytical tool because each excludes some but not all items that affect the most directly comparable GAAP financial measure. You should not consider Adjusted EBITDA or distributable cash flow in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA and distributable cash flow may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

###
Contact:

3


Southcross Energy Partners, L.P.            
David Lawrence, 214-979-3720
Investor Relations

4


SOUTHCROSS ENERGY PARTNERS, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per unit data)
(Unaudited)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 


 


Revenues
$
123,043

 
$
147,114

 
$
316,673

 
$
471,735

Revenues - affiliates
21,619

 
32,455

 
72,418

 
60,993

Total revenues
144,662

 
179,569

 
389,091

 
532,728

 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 

 
 

Cost of natural gas and liquids sold
108,572

 
133,401

 
273,638

 
399,111

Operations and maintenance
17,781

 
19,139

 
54,173

 
61,528

Depreciation and amortization
31,449

 
17,853

 
68,898

 
52,456

General and administrative
6,831

 
6,803

 
22,879

 
23,612

Impairment of assets
476

 
—

 
476

 
193

Loss (gain) on sale of assets, net
(179
)
 
(33
)
 
(12,755
)
 
146

Total expenses
164,930

 
177,163

 
407,309

 
537,046

 
 
 
 
 
 
 
 
Income (loss) from operations
(20,268
)
 
2,406

 
(18,218
)
 
(4,318
)
Other expense:


 


 


 


Equity in losses of joint venture investments
(3,694
)
 
(3,567
)
 
(10,656
)
 
(10,722
)
Interest expense
(8,598
)
 
(8,688
)
 
(26,601
)
 
(24,087
)
Total other expense
(12,292
)
 
(12,255
)
 
(37,257
)
 
(34,809
)
Loss before income tax benefit
(32,560
)
 
(9,849
)
 
(55,475
)
 
(39,127
)
Income tax benefit
—

 
190

 
2

 
113

Net loss
$
(32,560
)
 
$
(9,659
)
 
$
(55,473
)
 
$
(39,014
)
General partner unit in-kind distribution
(12
)
 
(28
)
 
(38
)
 
(165
)
Net loss attributable to Holdings
—

 
—

 
—

 
(4,258
)
Net loss attributable to partners
$
(32,572
)
 
$
(9,687
)
 
$
(55,511
)
 
$
(34,921
)
 
 
 
 
 


 


Earnings per unit and distributions declared
 
 
 
 


 


Net loss allocated to limited partner common units
$
(17,915
)
 
$
(4,799
)
 
$
(29,235
)
 
$
(16,711
)
Weighted average number of limited partner common units outstanding
36,947
 
28,372
 
33,119
 
26,234
Basic and diluted loss per common unit
$
(0.48
)
 
$
(0.17
)
 
$
(0.88
)
 
$
(0.64
)
 
 
 
 
 


 


Net loss allocated to limited partner subordinated units
$
(5,920
)
 
$
(2,065
)
 
$
(10,777
)
 
$
(7,777
)
Weighted average number of limited partner subordinated units outstanding
12,214
 
12,214
 
12,214
 
12,214
Basic and diluted loss per subordinated unit
$
(0.48
)
 
$
(0.17
)
 
$
(0.88
)
 
$
(0.64
)
Distributions declared and paid per common unit
$
—

 
$
0.40

 
$
—

 
$
1.20







5


SOUTHCROSS ENERGY PARTNERS, L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for unit data)
(Unaudited)
 
September 30, 2016
 
December 31, 2015
ASSETS
 

 
 

Current assets:
 

 
 

Cash and cash equivalents
$
4,115

 
$
11,348

Trade accounts receivable
37,120

 
39,585

Accounts receivable - affiliates
5,283

 
49,734

Prepaid expenses
3,995

 
3,915

Other current assets
1,526

 
1,256

Total current assets
52,039

 
105,838

 
 
 
 
Property, plant and equipment, net
1,008,342

 
1,066,001

Investments in joint ventures
134,457

 
140,526

Other assets
2,222

 
6,595

Total assets
$
1,197,060

 
$
1,318,960

 
 
 
 
LIABILITIES AND PARTNERS’ CAPITAL
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued liabilities
$
48,074

 
$
66,458

Accounts payable - affiliates
—

 
7,871

Current portion of long-term debt
4,500

 
4,500

Other current liabilities
7,466

 
10,406

Total current liabilities
60,040

 
89,235

 
 
 
 
Long-term debt
544,409

 
604,518

Other non-current liabilities
8,665

 
3,871

Total liabilities
613,114

 
697,624

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Partners' capital:
 
 
 
Common units (36,987,913 and 28,420,619 units outstanding as of September 30, 2016 and December 31, 2015, respectively)
257,977

 
271,236

Class B Convertible units (16,811,649 and 15,958,990 units issued and outstanding as of September 30, 2016 and December 31, 2015)
288,080

 
300,596

Subordinated units (12,213,713 units issued and outstanding as of September 30, 2016 and December 31, 2015)
26,689

 
37,920

General partner interest
11,200

 
11,584

Total partners' capital
583,946

 
621,336

Total liabilities and partners' capital
$
1,197,060

 
$
1,318,960








6


SOUTHCROSS ENERGY PARTNERS, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited) 
 
Nine Months Ended September 30,
 
2016
 
2015
Cash flows from operating activities:
 
 
 
Net loss
$
(55,473
)
 
$
(39,014
)
Adjustments to reconcile net loss to net cash provided by operating activities:

 

Depreciation and amortization
68,898

 
52,456

Unit-based compensation
2,635

 
3,513

Amortization of deferred financing costs and PIK interest
2,796

 
2,615

Loss (gain) on sale of assets, net
(12,755
)
 
146

Unrealized loss (gain) on financial instruments
(116
)
 
289

Equity in losses of joint venture investments
10,656

 
10,722

Distribution from joint venture investment
740

 
500

Impairment of assets
476

 
193

Other, net
(247
)
 
(69
)
Changes in operating assets and liabilities:


 


Trade accounts receivable, including affiliates
46,444

 
5,613

Prepaid expenses and other current assets
(656
)
 
(1,516
)
Other non-current assets
(63
)
 
77

Accounts payable and accrued liabilities
(24,685
)
 
(14,180
)
Other liabilities, including affiliates
2,553

 
3,163

Net cash provided by operating activities
41,203

 
24,508

Cash flows from investing activities:


 


Capital expenditures
(17,329
)
 
(93,946
)
Insurance proceeds (expenditures) from property damage claims
125

 
(2,482
)
Net proceeds from sales of assets
20,734

 
4,693

Consideration paid for Holdings' drop-down acquisition
—

 
(15,000
)
Investment contributions to joint venture investments
(5,327
)
 
(2,474
)
Net cash used in investing activities
(1,797
)
 
(109,209
)
Cash flows from financing activities:


 


Borrowings under our credit facility
3,110

 
136,000

Repayments under our credit facility
(62,250
)
 
(31,000
)
Repayments under our term loan agreement
(3,375
)
 
(3,375
)
Payments on capital lease obligations
(314
)
 
(406
)
Financing costs
(130
)
 
(685
)
Tax withholdings on unit-based compensation vested units
(122
)
 
(420
)
Payments of distributions and distribution equivalent rights
—

 
(35,088
)
Expenses paid by Holdings on behalf of Valley Wells' assets
—

 
17,858

Borrowing of senior unsecured PIK notes
14,000

 
—

Repayment of senior unsecured PIK notes and PIK interest
(14,260
)
 
—

Valley Wells operating expense cap adjustment
4,053

 
518

Contributions from general partner
—

 
1,301

Common unit issuances to Holdings related to equity cures
12,416

 
—

Interest on receivable due from Holdings
233

 
—

Net cash provided by (used in) financing activities
(46,639
)
 
84,703

 
 
 
 
Net increase (decrease) in cash and cash equivalents
(7,233
)
 
2

Cash and cash equivalents — Beginning of period
11,348

 
1,649

Cash and cash equivalents — End of period
$
4,115

 
$
1,651


7


SOUTHCROSS ENERGY PARTNERS, L.P.
SELECTED FINANCIAL AND OPERATIONAL DATA
(In thousands, except for operating data)
(Unaudited)

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Financial data:
 
 
 
 
 
 
 
Adjusted EBITDA
$
14,834

 
$
23,573

 
$
51,129

 
$
58,991

 
 
 
 
 
 
 
 
Maintenance capital expenditures
$
969

 
$
3,351

 
$
4,081

 
$
8,968

Growth capital expenditures
3,926

 
25,636

 
13,248

 
84,978

 
 
 
 
 
 
 
 
Distributable cash flow
$
5,830

 
$
12,662

 
$
20,853

 
$
28,818

Cash distributions declared
—

 
11,826

 
—

 
33,546

 
 
 
 
 
 
 
 
Operating data:
 
 
 
 
 
 
 
Average volume of processed gas (MMcf/d)
299

 
441

 
320

 
432

Average volume of NGLs produced (Bbls/d)
29,675

 
43,541

 
35,043

 
42,031

Average daily throughput Mississippi/Alabama (MMcf/d)
136

 
216

 
146

 
234

 
 
 
 
 
 
 
 
Realized prices on natural gas volumes ($/Mcf)
$
2.76

 
$
3.61

 
$
2.15

 
$
3.07

Realized prices on NGL volumes ($/gal)
0.18

 
0.34

 
0.34

 
0.38






























8



SOUTHCROSS ENERGY PARTNERS, L.P.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands)
(Unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Net cash provided by operating activities
$
11,256

 
$
20,005

 
$
41,203

 
$
24,508

Add (deduct):
 
 
 
 
 
 
 
Depreciation and amortization
(31,449
)
 
(17,853
)
 
(68,898
)
 
(52,456
)
Unit-based compensation
(929
)
 
(1,038
)
 
(2,635
)
 
(3,513
)
Amortization of deferred financing costs and PIK interest
(892
)
 
(888
)
 
(2,796
)
 
(2,615
)
Gain (loss) on sale of assets, net
179

 
33

 
12,755

 
(146
)
Unrealized gain (loss) on financial instruments
61

 
(68
)
 
116

 
(289
)
Equity in losses of joint venture investments
(3,694
)
 
(3,567
)
 
(10,656
)
 
(10,722
)
Distribution from joint venture investment
(350
)
 
(500
)
 
(740
)
 
(500
)
Impairment of assets
(476
)
 
—

 
(476
)
 
(193
)
Other, net
63

 
67

 
247

 
69

Changes in operating assets and liabilities:


 


 


 


Trade accounts receivable, including affiliates
(2,035
)
 
11,338

 
(46,444
)
 
(5,613
)
Prepaid expenses and other current assets
(1,679
)
 
2,296

 
656

 
1,516

Other non-current assets
63

 
(1
)
 
63

 
(77
)
Accounts payable and accrued liabilities
(3,123
)
 
(17,224
)
 
24,685

 
14,180

Other liabilities, including affiliates
445

 
(2,259
)
 
(2,553
)
 
(3,163
)
Net loss
$
(32,560
)
 
$
(9,659
)
 
$
(55,473
)
 
$
(39,014
)
Add (deduct):
 
 
 
 
 
 
 
Depreciation and amortization
$
31,449

 
$
17,853

 
$
68,898

 
$
52,456

Interest expense
8,598

 
8,688

 
26,601

 
24,087

Income tax benefit
—

 
(190
)
 
(2
)
 
(113
)
Unrealized loss on commodity swap derivatives
—

 
(15
)
 
—

 
(126
)
Loss (gain) on sale of assets, net
(179
)
 
(33
)
 
(12,755
)
 
146

Revenue deferral adjustment
754

 
754

 
2,262

 
2,262

Unit-based compensation
929

 
1,038

 
2,635

 
3,513

Major litigation costs, net of recoveries
173

 
18

 
416

 
509

Transaction-related costs
—

 
613

 
6

 
1,785

Equity in losses of joint venture investments
3,694

 
3,567

 
10,656

 
10,722

Severance expense
—

 
—

 
16

 
734

Retention bonus due from Holdings
898

 
—

 
2,694

 
—

Valley Wells' operating expense cap adjustment
—

 
505

 
2,406

 
1,023

Fees related to Equity Cure Agreement
12

 
—

 
589

 
—

Distribution from joint venture investment
350

 
500

 
740

 
500

Impairment of assets
476

 
—

 
476

 
193

Other, net (1)
240

 
(66
)
 
964

 
314

Adjusted EBITDA
$
14,834

 
$
23,573

 
$
51,129

 
$
58,991

Cash interest, net of capitalized costs
(8,035
)
 
(7,750
)
 
(26,197
)
 
(21,317
)
Income tax benefit
—

 
190

 
2

 
112

Maintenance capital expenditures
(969
)
 
(3,351
)
 
(4,081
)
 
(8,968
)
Distributable cash flow
$
5,830

 
$
12,662

 
$
20,853

 
$
28,818


(1) These amounts include an immaterial amount related to the effects of presenting our financial results on an as-if pooled basis (in connection with the 2015 Holdings Acquisition).

9


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings