Shell Midstream Partners, L.P. (SHLX), a growth-oriented mainstream midstream master limited partnership formed by Royal Dutch Shell, plc (RDS), reported net income attributable to the partnership of $57.0 million for the fourth quarter of 2015, which equates to $0.38 per common limited partner unit. Shell Midstream Partners also generated adjusted earnings before interest, income taxes, depreciation and amortization attributable to the partnership of $65.5 million and cash available for distribution of $67.9 million. Total cash available for distribution excluding non-recurring payments was $55.0 million.
“Shell Midstream Partners’ underlying business remained resilient despite the volatile environment. Strong performance over the quarter supported the 7.3% increase in quarterly distribution, while affording the partnership ample distribution coverage. Furthermore, distributions to our unitholders have increased over 35% from the same quarter last year, which demonstrates our ability to deliver sustainable growth to unitholders,” said John Hollowell, CEO.
The runway of North American assets owned or under development by RDS that could be dropped into Shell Midstream Partners is currently estimated at $3.0 - $3.5 billion of EBITDA. This runway of assets could support distribution growth for Shell Midstream Partners well into the future.