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Cypress Energy Partners, L.P. Announces Second Quarter 2019 Results

TULSA, Okla.--(BUSINESS WIRE)--

Cypress Energy Partners, L.P. (NYSE:CELP) today reported:

  • Revenues of $111.1 million for the second quarter of 2019, an increase of 45% from the second quarter of 2018;
  • Gross margin of $14.8 million for the second quarter of 2019, an increase of 35% from the second quarter of 2018;
  • Net income of $5.6 million for the second quarter of 2019, an increase of 59% from the second quarter of 2018;
  • Adjusted EBITDA attributable to limited partners of $8.7 million for the second quarter of 2019, an increase of 56% from the second quarter of 2018;
  • Common unit distribution coverage ratio of 2.07x for the second quarter of 2019, an increase of 66% from the second quarter of 2018;
  • Net debt leverage ratio of 2.85x for the second quarter of 2019, a decrease of 8% from the second quarter of 2018;
  • Cash distribution of $0.21 per unit, consistent with the last nine quarters.

Peter C. Boylan III, CELP’s Chairman and Chief Executive Officer, stated, “I am pleased to report a great second quarter with strong revenue growth driven by Tulsa Inspection Resources (“TIR”), our Pipeline Inspection segment. Pipeline inspection and integrity services, our primary businesses, represented 98% of our revenue and 86% of our gross margin during the first six months of 2019. We have continued to strengthen our balance sheet, materially reduced our leverage, and have strong distribution coverage.”

Mr. Boylan continued, “Revenues of our Pipeline Inspection segment increased from $70.4 million during the three months ended June 30, 2018 to $104.0 million during the three months ended June 30, 2019, an increase of 48%. Gross margins in this segment increased from $7.9 million during the three months ended June 30, 2018 to $11.4 million during the three months ended June 30, 2019, an increase of 45%.”

“Revenues of our Pipeline & Process Services segment increased from $3.1 million during the three months ended June 30, 2018 to $4.4 million during the three months ended June 30, 2019, an increase of 42%. Revenues of this segment benefitted from several large projects that were scheduled to begin in the first quarter, but were delayed by adverse weather. Gross margins in this segment increased from $1.0 million during the three months ended June 30, 2018 to $1.4 million during the three months ended June 30, 2019, an increase of 37%.”

“Revenues of our Water Services segment decreased from $3.0 million during the three months ended June 30, 2018 to $2.7 million during the three months ended June 30, 2019, a decrease of 11%. The decrease in revenues was due to slightly lower volumes, a planned reduction on pipeline transport fees, and lower crude oil prices on our oil sales.”

“Our sponsor, Cypress Energy Holdings, LLC (“CEH”), completed two acquisitions in the second half of 2018. CEH continues to make progress with both of these acquisitions and currently intends to offer them to the Partnership once it has accomplished certain developmental goals. These acquisitions would move us into several new pipeline services including water treatment, in-line inspection (“ILI”), equipment rental, and offshore pipeline process services. We remain excited about entering the ILI industry with next-generation high resolution MFL ILI technology capable of helping pipeline owners and operators better manage the integrity of their assets in both the energy and municipal water industries.”

Mr. Boylan further stated, “The long-term increasing demand for pipeline inspection, integrity services, and water solutions remains strong due to our nation’s aging pipeline infrastructure as well as growing production, and we believe we continue to be well-positioned to capitalize on the opportunities. Our ownership interests continue to remain fully aligned with our unitholders, as our General Partner and insiders collectively own 64% of our common units and an affiliate of our General Partner owns 100% of our preferred units or cumulatively 76% of our total common and preferred units.

Second Quarter:

  • Revenue of $111.1 million for the three months ended June 30, 2019, compared with $76.5 million for the three months ended June 30, 2018, representing a 45% increase.
  • Gross margin of $14.8 million for the three months ended June 30, 2019, compared to $10.9 million for the three months ended June 30, 2018, representing a 35% increase. The gross margin percentage was 13.3% for the three months ended June 30, 2019 compared to 14.3% for the three months ended June 30, 2018.
  • Net income of $5.6 million for the three months ended June 30, 2019, compared to $3.6 million for the three months ended June 30, 2018, representing a 59% increase. Net income included gains on asset sales of $1.6 million for the three months ended June 30, 2018.
  • Net income attributable to common unitholders of $4.3 million for the three months ended June 30, 2019, compared to $3.0 million for the three months ended June 30, 2018 (after giving effect to $1.0 million of net income attributable to preferred unitholders for each of the three months ended June 30, 2019 and 2018 related to preferred units that were issued in May 2018), representing a 43% increase. Net income attributable to common unitholders included gains on asset sales of $1.6 million for the three months ended June 30, 2018.
  • Adjusted EBITDA of $9.2 million for the three months ended June 30, 2019 (including noncontrolling interests and amounts attributable to our general partner), compared to $5.9 million for the three months ended June 30, 2018 (including noncontrolling interests and amounts attributable to our general partner), representing a 55% increase.
  • Adjusted EBITDA attributable to limited partners of $8.7 million for the three months ended June 30, 2019, compared to $5.6 million for the three months ended June 30, 2018, representing a 56% increase.
  • Distributable Cash Flow of $5.2 million for the three months ended June 30, 2019, compared to $3.1 million for the three months ended June 30, 2018, representing a 68% increase. Distributable Cash Flow for the three months ended June 30, 2019 was reduced by $1.0 million of distributions on preferred equity.
  • A net debt (debt, including finance leases, net of cash and cash equivalents) leverage ratio of 2.85x, a credit facility covenant leverage ratio of 3.1x, and a credit facility interest coverage ratio of 5.5x, on June 30, 2019.

Year-To-Date:

  • Revenue of $201.5 million for the six months ended June 30, 2019, compared with $141.3 million for the six months ended June 30, 2018, representing a 43% increase. This increase was due to increased customer activity, primarily in our Pipeline Inspection segment.
  • Net income of $7.0 million for the six months ended June 30, 2019, compared with $4.5 million for the six months ended June 30, 2018, representing a 56% increase. Net income included gains on asset sales of $3.3 million for the six months ended June 30, 2018.
  • Net income attributable to common unitholders of $4.9 million for the six months ended June 30, 2019, compared with $3.8 million for the six months ended June 30, 2018, representing a 30% increase. Net income attributable to common unitholders included gains on asset sales of $3.3 million for the six months ended June 30, 2018.
  • Adjusted EBITDA of $13.6 million for the six months ended June 30, 2019 (including noncontrolling interests), compared with $9.1 million for the six months ended June 30, 2018, representing a 49% increase.
  • Adjusted EBITDA attributable to limited partners of $13.3 million for the six months ended June 30, 2019, compared with $8.5 million for the six months ended June 30, 2018, representing a 56% increase.
  • Distributable Cash Flow of $7.5 million for the six months ended June 30, 2019, compared with $4.1 million for the six months ended June 30, 2018, representing an 86% increase.

Highlights include:

  • An attractive mix of business driving solid gross margin, EBITDA, and distributable cash flow growth.
  • We deployed an average of 1,673 inspectors per week for the second quarter of 2019 compared to 1,188 inspectors per week in the second quarter of 2018, representing a 41% increase.
  • We disposed 3.5 million barrels of saltwater at an average revenue per barrel of $0.77 during the second quarter of 2019, compared with the disposal of 3.6 million barrels of saltwater at an average revenue per barrel of $0.85 during the second quarter of 2018.
  • Maintenance capital expenditures for the second quarter of 2019 and 2018 were $0.1 million, reflecting the minimal maintenance capital expenditures necessary for the operations of our businesses.
  • Our expansion capital expenditures during the first six months of 2019 totaled $0.9 million. The expansion capital expenditures included the purchase of equipment to support our nondestructive examination business and costs associated with a new software system for payroll and human resources management that we are in the process of implementing.

Looking forward:

  • We continue to pursue new customers and new projects as they are announced and to renew existing contracts. During the second quarter of 2019, our Pipeline Inspection segment set a new inspector headcount record in its sixteen-year history.
  • We continue our focus on maintenance, integrity, and nondestructive examination services. These business lines yield higher gross margins than our standard inspection work.
  • During the second quarter of 2019, 95% of total saltwater disposal volumes came from produced water, and piped water represented 45% of total water volumes. We have significant operating leverage with our unused capacity, cost structure and minimal maintenance capital expenditure requirements should drilling activity and water volumes increase.
  • LIBOR interest rates remained relatively unchanged over the last quarter but have risen by about 31 basis points compared to this time last year. However, our outstanding borrowings were significantly reduced as a result of our preferred equity offering and debt refinancing in May 2018. The interest rate on our borrowings ranged between 5.90% and 6.02% for the six months ended June 30, 2019.
  • Our relationship with PG&E remains strong. We have continued to provide services to PG&E after their bankruptcy filing and have been receiving prompt payment for such services. The bankruptcy court (the “Court”) granted a motion authorizing PG&E to pay certain pre-petition claims to certain key suppliers, including “operational integrity suppliers.” PG&E has advised us that we have been approved to receive a payment under the operational integrity supplier order. Details regarding the amount of such award and associated release terms have not yet been finalized. The Court also authorized PG&E to pay pre-petition claims to certain suppliers that have filed or could file liens on PG&E’s assets. We filed and perfected liens in the counties in which we performed services that are subject to our pre-petition receivables. We are working with PG&E to ensure they have all the required information to support our liens as they work through their payment approval process. Collecting the pre-petition accounts receivable would substantially improve our cash position and net debt leverage ratio.

CELP will file its quarterly report on Form 10-Q for the period ended June 30, 2019 with the Securities and Exchange Commission on August 14, 2019. CELP will also post a copy of the Form 10-Q on its website at www.cypressenergy.com.

Non-GAAP Measures:

Cypress defines Adjusted EBITDA as net income, plus interest expense, depreciation, amortization and accretion expenses, income tax expenses, impairments, non-cash allocated expenses, and equity-based compensation, less certain other unusual or non-recurring items. Cypress defines Adjusted EBITDA attributable to limited partners as net income attributable to limited partners, plus interest expense attributable to limited partners, depreciation, amortization and accretion attributable to limited partners, impairments attributable to limited partners, income tax expense attributable to limited partners, and equity-based compensation attributable to limited partners, less certain other unusual or non-recurring items attributable to limited partners. Cypress defines Distributable Cash Flow as Adjusted EBITDA attributable to limited partners less cash interest paid, cash income taxes paid, maintenance capital expenditures, and cash distributions on preferred equity. These are supplemental, non-GAAP financial measures used by management and by external users of our financial statements, such as investors and commercial banks, to assess our operating performance as compared to those of other companies in the midstream sector, without regard to financing methods, historical cost basis or capital structure; the ability of our assets to generate sufficient cash flow to make distributions to our unitholders; our ability to incur and service debt and fund capital expenditures; the viability of acquisitions and other capital expenditure projects; and the returns on investment of various investment opportunities. The GAAP measures most directly comparable to Adjusted EBITDA, Adjusted EBITDA attributable to limited partners, and Distributable Cash Flow are net income and cash flow from operating activities, respectively. These non-GAAP measures should not be considered as alternatives to the most directly comparable GAAP financial measure. Each of these non-GAAP financial measures exclude some, but not all, items that affect the most directly comparable GAAP financial measure. Adjusted EBITDA, Adjusted EBITDA attributable to limited partners and Distributable Cash Flow should not be considered an alternative to net income, income before income taxes, net income attributable to limited partners, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP as those items are used to measure operating performance, liquidity, or the ability to service debt obligations. Cypress believes that the presentation of Adjusted EBITDA, Adjusted EBITDA attributable to limited partners and Distributable Cash Flow will provide useful information to investors in assessing our financial condition and results of operations. Cypress uses Adjusted EBITDA, Adjusted EBITDA attributable to limited partners and Distributable Cash Flow as a supplemental financial measure to both manage our business and assess the cash flows generated by our assets (prior to the establishment of any retained cash reserves by the general partner) to fund the cash distributions we expect to pay to unitholders, to evaluate our success in providing a cash return on investment, and whether or not the Partnership is generating cash flow at a level that can sustain or support an increase in its quarterly distribution rates and to determine the yield of our units, which is a quantitative standard used throughout the investment community with respect to publicly-traded partnerships, as the value of a unit is generally determined by a unit’s yield (which in turn is based on the amount of cash distributions the entity pays to a unitholder). Because Adjusted EBITDA, Adjusted EBITDA attributable to limited partners and Distributable Cash Flow may be defined differently by other companies in our industry, our definitions of Adjusted EBITDA, Adjusted EBITDA attributable to limited partners and Distributable Cash Flow may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. Reconciliations of (i) Net Income to Adjusted EBITDA and Distributable Cash Flow, (ii) Net Income attributable to limited partners to Adjusted EBITDA attributable to limited partners and Distributable Cash Flow and (iii) Net Cash Provided by (Used In) Operating Activities to Adjusted EBITDA and Distributable Cash Flow are provided below.

This press release includes “forward-looking statements.” All statements, other than statements of historical facts included or incorporated herein, may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While CELP believes its expectations, as reflected in the forward-looking statements, are reasonable, CELP can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in CELP’s Annual Report filed on Form 10-K and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” CELP undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.

About Cypress Energy Partners, L.P.

Cypress Energy Partners, L.P. is a master limited partnership that provides essential midstream services, including pipeline inspection, integrity, and hydrostatic testing services to various energy companies and their vendors throughout the U.S. and Canada. Cypress also provides saltwater disposal and environmental services to upstream energy companies and their vendors in North Dakota in the Bakken region of the Williston Basin. In all of these business segments, Cypress works closely with its customers to help them comply with increasingly complex and strict environmental and safety rules and regulations and reduce their operating costs. Cypress is headquartered in Tulsa, Oklahoma.

CYPRESS ENERGY PARTNERS, L.P.

Unaudited Condensed Consolidated Balance Sheets

As of June 30, 2019 and December 31, 2018

(in thousands)

June 30,

 

December 31,

 

2019

 

 

 

2018

 

 

ASSETS

Current assets:

Cash and cash equivalents

$

5,770

 

$

15,380

 

Trade accounts receivable, net

 

74,388

 

 

48,789

 

Prepaid expenses and other

 

1,002

 

 

1,396

 

Total current assets

 

81,160

 

 

65,565

 

Property and equipment:

Property and equipment, at cost

 

24,584

 

 

23,988

 

Less: Accumulated depreciation

 

12,479

 

 

11,266

 

Total property and equipment, net

 

12,105

 

 

12,722

 

Intangible assets, net

 

21,411

 

 

22,759

 

Goodwill

 

50,346

 

 

50,294

 

Finance lease right-of-use assets, net

 

595

 

 

-

 

Operating lease right-of-use assets

 

3,198

 

 

-

 

Debt issuance costs, net

 

1,000

 

 

1,260

 

Other assets

 

470

 

 

253

 

Total assets

$

170,285

 

$

152,853

 

 

LIABILITIES AND OWNERS' EQUITY

Current liabilities:

Accounts payable

$

6,380

 

$

4,848

 

Accounts payable - affiliates

 

4,514

 

 

4,060

 

Accrued payroll and other

 

16,721

 

 

12,276

 

Income taxes payable

 

484

 

 

737

 

Finance lease obligations

 

158

 

 

90

 

Operating lease obligations

 

511

 

 

-

 

Total current liabilities

 

28,768

 

 

22,011

 

Long-term debt

 

83,929

 

 

76,129

 

Finance lease obligations

 

376

 

 

248

 

Operating lease obligations

 

2,675

 

 

-

 

Other noncurrent liabilities

 

184

 

 

178

 

Total liabilities

 

115,932

 

 

98,566

 

 

Owners' equity:

Partners’ capital:

Common units (12,053 and 11,947 units outstanding at

June 30, 2019 and December 31, 2018, respectively)

 

34,820

 

 

34,677

 

Preferred units (5,769 units outstanding at June 30, 2019 and December 31, 2018)

 

44,291

 

 

44,291

 

General partner

 

(25,876

)

 

(25,876

)

Accumulated other comprehensive loss

 

(2,549

)

 

(2,414

)

Total partners' capital

 

50,686

 

 

50,678

 

Noncontrolling interests

 

3,667

 

 

3,609

 

Total owners' equity

 

54,353

 

 

54,287

 

Total liabilities and owners' equity

$

170,285

 

$

152,853

 

 

CYPRESS ENERGY PARTNERS, L.P.

Unaudited Condensed Consolidated Statements of Operations

For the Three and Six Months Ended June 30, 2019 and 2018

(in thousands, except per unit data)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2018

 

 

Revenue

$

111,091

 

$

76,468

 

$

201,467

 

$

141,294

 

Costs of services

 

96,284

 

 

65,525

 

 

176,637

 

 

122,222

 

Gross margin

 

14,807

 

 

10,943

 

 

24,830

 

 

19,072

 

 

Operating costs and expense:

General and administrative

 

6,158

 

 

5,822

 

 

12,389

 

 

11,277

 

Depreciation, amortization and accretion

 

1,109

 

 

1,110

 

 

2,213

 

 

2,244

 

Gain on asset disposals, net

 

(2

)

 

(1,606

)

 

(23

)

 

(3,315

)

Operating income

 

7,542

 

 

5,617

 

 

10,251

 

 

8,866

 

 

Other (expense) income:

Interest expense, net

 

(1,415

)

 

(1,668

)

 

(2,726

)

 

(3,624

)

Debt issuance cost write-off

 

-

 

 

(114

)

 

-

 

 

(114

)

Foreign currency gains (losses)

 

84

 

 

(117

)

 

185

 

 

(451

)

Other, net

 

50

 

 

125

 

 

138

 

 

207

 

Net income before income tax expense

 

6,261

 

 

3,843

 

 

7,848

 

 

4,884

 

Income tax expense

 

618

 

 

287

 

 

824

 

 

368

 

Net income

 

5,643

 

 

3,556

 

 

7,024

 

 

4,516

 

 

Net income attributable to noncontrolling interests

 

277

 

 

149

 

 

58

 

 

384

 

Net income attributable to partners / controlling interests

 

5,366

 

 

3,407

 

 

6,966

 

 

4,132

 

 

Net income attributable to preferred unitholder

 

1,033

 

 

367

 

 

2,066

 

 

367

 

Net income attributable to common unitholders

$

4,333

 

$

3,040

 

$

4,900

 

$

3,765

 

 

Net income per common limited partner unit:

Basic

$

0.36

 

$

0.25

 

$

0.41

 

$

0.32

 

Diluted

$

0.29

 

$

0.24

 

$

0.38

 

$

0.31

 

 

Weighted average common units outstanding:

Basic

 

12,053

 

 

11,933

 

 

12,012

 

 

11,916

 

Diluted

 

18,218

 

 

14,298

 

 

18,163

 

 

13,324

 

 

Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow

 

Three Months ended June 30,

 

Six Months ended June 30,

2019

 

2018

 

2019

 

2018

(in thousands)

 

Net income

$

5,643

$

3,556

$

7,024

$

4,516

Add:

Interest expense

 

1,415

 

1,668

 

2,726

 

3,624

Debt issuance cost write-off

 

-

 

114

 

-

 

114

Depreciation, amortization and accretion

 

1,388

 

1,375

 

2,764

 

2,793

Income tax expense (benefit)

 

618

 

287

 

824

 

368

Equity-based compensation

 

174

 

335

 

443

 

547

Foreign currency losses

 

-

 

117

 

-

 

451

Less:

Foreign currency gains

 

84

 

-

 

185

 

-

Gain on asset disposals, net

 

-

 

1,561

 

-

 

3,270

Adjusted EBITDA

$

9,154

$

5,891

$

13,596

$

9,143

 

Adjusted EBITDA attributable to noncontrolling interests

 

420

 

278

 

331

 

664

Adjusted EBITDA attributable to limited partners / controlling interests

$

8,734

$

5,613

$

13,265

$

8,479

 

Less:

Preferred unit distributions

 

1,033

 

-

 

2,066

 

-

Cash interest paid, cash taxes paid, maintenance capital expenditures

 

2,464

 

2,492

 

3,682

 

4,428

Distributable cash flow

$

5,237

$

3,121

$

7,517

$

4,051

 
 

Reconciliation of Net Income Attributable to Limited Partners to Adjusted

EBITDA Attributable to Limited Partners and Distributable Cash Flow

Three Months ended June 30,

 

Six Months ended June 30,

2019

 

2018

 

2019

 

2018

(in thousands)

 

Net income attributable to limited partners

$

5,366

$

3,407

$

6,966

$

4,132

Add:

Interest expense attributable to limited partners

 

1,415

 

1,668

 

2,726

 

3,624

Debt issuance cost write-off attributable to limited partners

 

-

 

114

 

-

 

114

Depreciation, amortization and accretion attributable to limited partners

 

1,255

 

1,252

 

2,504

 

2,527

Income tax expense attributable to limited partners

 

608

 

281

 

811

 

354

Equity based compensation attributable to limited partners

 

174

 

335

 

443

 

547

Foreign currency losses attributable to limited partners

 

-

 

117

 

-

 

451

Less:

Foreign currency gains attributable to limited partners

 

84

 

-

 

185

 

-

Gain on asset disposals attributable to limited partners, net

 

-

 

1,561

 

-

 

3,270

Adjusted EBITDA attributable to limited partners

 

8,734

 

5,613

 

13,265

 

8,479

 

Less:

Preferred unit distributions

 

1,033

 

-

 

2,066

 

-

Cash interest paid, cash taxes paid and maintenance capital

 

 

 

 

expenditures attributable to limited partners

 

2,464

 

2,492

 

3,682

 

4,428

Distributable cash flow

$

5,237

$

3,121

$

7,517

$

4,051

Reconciliation of Net Cash Flows (Used in) Provided by Operating

Activities to Adjusted EBITDA and Distributable Cash Flow

Six Months ended June 30,

 

2019

 

 

 

2018

 

(in thousands)

 

Cash flows (used in) provided by operating activities

$

(9,040

)

$

2,059

 

Changes in trade accounts receivable, net

 

25,595

 

 

6,059

 

Changes in prepaid expenses and other

 

(128

)

 

(1,358

)

Changes in accounts payable and accrued liabilities

 

(6,358

)

 

(1,744

)

Change in income taxes payable

 

252

 

 

300

 

Interest expense (excluding non-cash interest)

 

2,465

 

 

3,377

 

Income tax expense (excluding deferred tax benefit)

 

824

 

 

368

 

Other

 

(14

)

 

82

 

Adjusted EBITDA

$

13,596

 

$

9,143

 

 

Adjusted EBITDA attributable to noncontrolling interests

 

331

 

 

664

 

Adjusted EBITDA attributable to limited partners / controlling interests

$

13,265

 

$

8,479

 

 

Less:

Preferred unit distributions

 

 

2,066

 

 

 

-

 

Cash interest paid, cash taxes paid, maintenance capital expenditures

 

3,682

 

 

4,428

 

Distributable cash flow

$

7,517

 

$

4,051

 

Operating Data

Three Months

 

Six Months

Ended June 30,

 

Ended June 30,

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2018

 

 

Total barrels of saltwater disposed (in thousands)

 

3,518

 

 

3,577

 

 

6,333

 

 

6,652

 

Average revenue per barrel

$

0.77

 

$

0.85

 

$

0.77

 

$

0.83

 

Water services gross margins

 

74.3

%

 

68.3

%

 

69.8

%

 

63.5

%

Average number of inspectors

 

1,673

 

 

1,188

 

 

1,553

 

 

1,109

 

Average number of U.S. inspectors

 

1,669

 

 

1,183

 

 

1,545

 

 

1,102

 

Average revenue per inspector per week

$

4,782

 

$

4,556

 

$

4,737

 

$

4,475

 

Pipeline inspection services gross margins

 

11.0

%

 

11.2

%

 

10.4

%

 

10.4

%

Average number of field personnel

 

29

 

 

22

 

 

28

 

 

22

 

Average revenue per field personnel per week

$

11,621

 

$

10,755

 

$

8,778

 

$

13,054

 

Pipeline integrity services gross margins

 

30.9

%

 

32.0

%

 

25.3

%

 

29.3

%

Maintenance capital expenditures (in thousands)

$

147

 

$

139

 

$

199

 

$

263

 

Expansion capital expenditures (in thousands)

$

561

 

$

1,725

 

$

862

 

$

3,632

 

Common unit distributions (in thousands)

$

2,531

 

$

2,506

 

$

5,062

 

$

5,012

 

Preferred unit distributions (in thousands)

 

$

1,033

 

 

$

-

 

 

$

2,066

 

 

$

-

 

Coverage ratio

2.07x

1.25x

1.48x

0.81x

Net debt leverage ratio

 

2.85x

 

3.09x

 

2.85x

 

3.09x

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20190814005740/en/