For the second quarter 2019, earnings before interest, taxes, depreciation and amortization ("EBITDA") was
Red River Pipeline Joint Venture
As announced on
During the second quarter 2019, the Red River joint venture generated
Distribution and Liquidity
On July 24, 2019,
As of June 30, 2019,
Financial Results
Revenue for the second quarter 2019 was
Pipelines and Transportation Segment
Contribution margin in the second quarter 2019 was
Wholesale Marketing and Terminalling Segment
During the second quarter 2019, contribution margin was
In the west
Average terminalling throughput volume of 156,922 barrels per day during the second quarter 2019 decreased on a year-over-year basis from 162,383 barrels per day in the second quarter 2018. During the second quarter 2019, average volume under the
Second Quarter 2019 Results | Conference Call Information
Investors may also wish to listen to Delek US’ (NYSE: DK) second quarter 2019 earnings conference call on
About
Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a substantial majority of
Non-GAAP Disclosures:
Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include:
- Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before net interest expense, income tax expense, depreciation and amortization expense, including amortization of customer contract intangible assets, which is included as a component of net revenues in our accompanying condensed consolidated statements of income.
- Distributable cash flow - calculated as net cash flow from operating activities plus or minus changes in assets and liabilities, less maintenance capital expenditures net of reimbursements and other adjustments not expected to settle in cash.
Delek Logistics believes this is an appropriate reflection of a liquidity measure by which users of its financial statements can assess its ability to generate cash.
EBITDA and distributable cash flow are non-U.S. GAAP supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
Delek Logistics' operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
Delek Logistics' ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net income and net cash provided by operating activities. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. Additionally, because EBITDA and distributable cash flow may be defined differently by other partnerships in its industry,
Delek Logistics Partners, LP | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
(In thousands, except unit and per unit data) | ||||||||
June 30, 2019 | December 31, 2018 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 5,440 | $ | 4,522 | ||||
Accounts receivable | 26,852 | 21,586 | ||||||
Inventory | 4,682 | 5,491 | ||||||
Other current assets | 467 | 969 | ||||||
Total current assets | 37,441 | 32,568 | ||||||
Property, plant and equipment: | ||||||||
Property, plant and equipment | 454,581 | 452,746 | ||||||
Less: accumulated depreciation | (153,036 | ) | (140,184 | ) | ||||
Property, plant and equipment, net | 301,545 | 312,562 | ||||||
Equity method investments | 241,597 | 104,770 | ||||||
Operating lease right-of-use assets | 18,793 | — | ||||||
Goodwill | 12,203 | 12,203 | ||||||
Marketing Contract Intangible, net | 134,605 | 138,210 | ||||||
Other non-current assets | 23,126 | 24,280 | ||||||
Total assets | $ | 769,310 | $ | 624,593 | ||||
LIABILITIES AND DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 8,214 | $ | 14,226 | ||||
Accounts payable to related parties | 9,636 | 7,833 | ||||||
Excise and other taxes payable | 4,238 | 4,069 | ||||||
Pipeline release liabilities | 2,888 | 4,419 | ||||||
Current portion of operating lease liabilities | 4,572 | — | ||||||
Accrued expenses and other current liabilities | 5,622 | 5,958 | ||||||
Total current liabilities | 35,170 | 36,505 | ||||||
Non-current liabilities: | ||||||||
Long-term debt | 840,920 | 700,430 | ||||||
Asset retirement obligations | 5,389 | 5,191 | ||||||
Operating lease liabilities, net of current portion | 14,220 | — | ||||||
Other non-current liabilities | 17,911 | 17,290 | ||||||
Total non-current liabilities | 878,440 | 722,911 | ||||||
Total liabilities | 913,610 | 759,416 | ||||||
Deficit: | ||||||||
Common unitholders - public; 9,123,239 units issued and outstanding at June 30, 2019 (9,109,807 at December 31, 2018) | 167,254 | 171,023 | ||||||
Common unitholders - Delek Holdings; 15,294,046 units issued and outstanding at June 30, 2019 (15,294,046 at December 31, 2018) | (305,827 | ) | (299,360 | ) | ||||
General partner - 498,312 units issued and outstanding at June 30, 2019 (498,038 at December 31, 2018) | (5,727 | ) | (6,486 | ) | ||||
Total deficit | (144,300 | ) | (134,823 | ) | ||||
Total liabilities and deficit | $ | 769,310 | $ | 624,593 |
Delek Logistics Partners, LP | ||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||
(In thousands, except unit and per unit data) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 (1) | 2019 | 2018 (1) | |||||||||||||
Net revenues: | ||||||||||||||||
Affiliate | $ | 61,918 | $ | 53,080 | $ | 124,883 | $ | 114,724 | ||||||||
Third-party | 93,424 | 113,200 | 182,942 | 219,477 | ||||||||||||
Net revenues | 155,342 | 166,280 | 307,825 | 334,201 | ||||||||||||
Cost of Sales: | ||||||||||||||||
Cost of materials and other | 93,854 | 106,016 | 190,119 | 225,048 | ||||||||||||
Operating expenses (excluding depreciation and amortization presented below) | 16,521 | 14,114 | 31,828 | 26,012 | ||||||||||||
Depreciation and amortization | 6,188 | 6,571 | 12,312 | 12,035 | ||||||||||||
Total cost of sales | 116,563 | 126,701 | 234,259 | 263,095 | ||||||||||||
Operating expenses related to wholesale business (excluding depreciation and amortization presented below) | 806 | 803 | 1,557 | 1,482 | ||||||||||||
General and administrative expenses | 5,293 | 3,747 | 9,766 | 6,722 | ||||||||||||
Depreciation and amortization | 451 | 448 | 901 | 984 | ||||||||||||
Loss on asset disposals | (27 | ) | (129 | ) | (25 | ) | (69 | ) | ||||||||
Total operating costs and expenses | 123,086 | 131,570 | 246,458 | 272,214 | ||||||||||||
Operating income | 32,256 | 34,710 | 61,367 | 61,987 | ||||||||||||
Interest expense, net | 11,354 | 10,926 | 22,655 | 18,988 | ||||||||||||
(Income) loss from equity method investments | (4,515 | ) | (1,899 | ) | (6,466 | ) | (2,757 | ) | ||||||||
Other expense (income), net | 461 | — | 461 | — | ||||||||||||
Total non-operating expenses, net | 7,300 | 9,027 | 16,650 | 16,231 | ||||||||||||
Income before income tax expense | 24,956 | 25,683 | 44,717 | 45,756 | ||||||||||||
Income tax expense | 71 | 101 | 136 | 179 | ||||||||||||
Net income attributable to partners | $ | 24,885 | $ | 25,582 | $ | 44,581 | $ | 45,577 | ||||||||
Comprehensive income attributable to partners | $ | 24,885 | $ | 25,582 | $ | 44,581 | $ | 45,577 | ||||||||
Less: General partner's interest in net income, including incentive distribution rights | 8,079 | 6,212 | 15,348 | 11,842 | ||||||||||||
Limited partners' interest in net income | $ | 16,806 | $ | 19,370 | $ | 29,233 | $ | 33,735 | ||||||||
Net income per limited partner unit: | ||||||||||||||||
Common units - (basic) | $ | 0.69 | $ | 0.79 | $ | 1.20 | $ | 1.38 | ||||||||
Common units - (diluted) | $ | 0.69 | $ | 0.79 | $ | 1.20 | $ | 1.38 | ||||||||
Weighted average limited partner units outstanding: | ||||||||||||||||
Common units - basic | 24,409,359 | 24,386,031 | 24,408,270 | 24,384,341 | ||||||||||||
Common units - diluted | 24,414,343 | 24,394,103 | 24,414,077 | 24,391,760 | ||||||||||||
Cash distribution per limited partner unit | $ | 0.850 | $ | 0.770 | $ | 1.670 | $ | 1.520 |
(1) | Certain changes to presentation of the prior period statements of income have been made in order to conform to the current period presentation, primarily relating to the addition of a subtotal entitled 'cost of sales' which includes all costs directly attributable to the generation of the related revenue, as defined by GAAP, and the retitling of what was previously referred to as 'cost of goods sold' to 'cost of materials and other'. Operating expenses and depreciation and amortization related to the wholesale business are excluded from cost of sales because they primarily relate to costs associated with selling the products. |
Delek Logistics Partners, LP | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
(In thousands) | ||||||||
Six Months Ended June 30, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 44,581 | $ | 45,577 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 13,213 | 13,019 | ||||||
Non-cash lease expense | 1,409 | — | ||||||
Amortization of customer contract intangible assets | 3,605 | 2,404 | ||||||
Amortization of deferred revenue | (803 | ) | (723 | ) | ||||
Amortization of deferred financing costs and debt discount | 1,480 | 1,334 | ||||||
Accretion of asset retirement obligations | 198 | 175 | ||||||
Deferred income taxes | (3 | ) | — | |||||
Income from equity method investments | (6,466 | ) | (2,757 | ) | ||||
Dividends from equity method investments | 3,833 | 2,302 | ||||||
Loss on asset disposals | (25 | ) | (69 | ) | ||||
Unit-based compensation expense | 290 | 302 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (5,266 | ) | 1,132 | |||||
Inventories and other current assets | 1,311 | 8,226 | ||||||
Accounts payable and other current liabilities | (8,928 | ) | (9,123 | ) | ||||
Accounts receivable/payable to related parties | 1,803 | (8,446 | ) | |||||
Non-current assets and liabilities, net | 95 | (1,710 | ) | |||||
Changes in assets and liabilities | (10,985 | ) | (9,921 | ) | ||||
Net cash provided by operating activities | 50,327 | 51,643 | ||||||
Cash flows from investing activities | ||||||||
Asset acquisitions, net of assumed asset retirement obligation liabilities | — | (72,376 | ) | |||||
Purchases of property, plant and equipment | (2,437 | ) | (5,949 | ) | ||||
Proceeds from sales of property, plant and equipment | 75 | 356 | ||||||
Purchases of intangible assets | — | (144,219 | ) | |||||
Distributions from equity method investments | 804 | 660 | ||||||
Equity method investment contributions | (134,998 | ) | (172 | ) | ||||
Net cash (used in) investing activities | (136,556 | ) | (221,700 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of additional units to maintain 2% General Partner interest | 8 | 13 | ||||||
Distributions to general partner | (14,603 | ) | (10,810 | ) | ||||
Distributions to common unitholders - public | (14,825 | ) | (13,463 | ) | ||||
Distributions to common unitholders - Delek Holdings | (24,929 | ) | (22,558 | ) | ||||
Distributions to Delek Holdings unitholders and general partner related to Big Spring Logistic Assets Acquisition | — | (98,798 | ) | |||||
Proceeds from revolving credit facility | 364,300 | 517,000 | ||||||
Payments of revolving credit facility | (224,300 | ) | (203,000 | ) | ||||
Deferred financing costs paid | — | (525 | ) | |||||
Reimbursement of capital expenditures by Delek Holdings | 1,496 | 2,700 | ||||||
Net cash provided by financing activities | 87,147 | 170,559 | ||||||
Net increase in cash and cash equivalents | 918 | 502 | ||||||
Cash and cash equivalents at the beginning of the period | 4,522 | 4,675 | ||||||
Cash and cash equivalents at the end of the period | $ | 5,440 | $ | 5,177 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 21,068 | $ | 17,890 | ||||
Income taxes | $ | 141 | $ | 2 | ||||
Non-cash investing activities: | ||||||||
Decrease in accrued capital expenditures | $ | (191 | ) | $ | (1,529 | ) | ||
Non-cash financing activities: | ||||||||
Non-cash lease liability arising from recognition of right of use assets upon adoption of ASU 2016-02 | $ | 20,202 | $ | — |
Delek Logistics Partners, LP | ||||||||||||||||
Reconciliation of Amounts Reported Under U.S. GAAP | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Reconciliation of Net Income to EBITDA: | ||||||||||||||||
Net income | $ | 24,885 | $ | 25,582 | $ | 44,581 | $ | 45,577 | ||||||||
Add: | ||||||||||||||||
Income tax expense | 71 | 101 | 136 | 179 | ||||||||||||
Depreciation and amortization | 6,639 | 7,019 | 13,213 | 13,019 | ||||||||||||
Amortization of customer contract intangible assets | 1,802 | 1,803 | 3,605 | 2,404 | ||||||||||||
Interest expense, net | 11,354 | 10,926 | 22,655 | 18,988 | ||||||||||||
EBITDA | $ | 44,751 | $ | 45,431 | $ | 84,190 | $ | 80,167 | ||||||||
Reconciliation of net cash from operating activities to distributable cash flow: | ||||||||||||||||
Net cash provided by operating activities | $ | 24,123 | $ | 27,987 | $ | 50,327 | $ | 51,643 | ||||||||
Changes in assets and liabilities | 7,816 | 6,215 | 10,985 | 9,921 | ||||||||||||
Non-cash lease expense | (393 | ) | $ | — | ||||||||||||
Distributions from equity method investments in investing activities | — | — | 804 | 660 | ||||||||||||
Maintenance and regulatory capital expenditures | (963 | ) | (1,017 | ) | (1,781 | ) | (1,341 | ) | ||||||||
Reimbursement from Delek Holdings for capital expenditures | 670 | 314 | 1,384 | 705 | ||||||||||||
Accretion of asset retirement obligations | (99 | ) | (97 | ) | (198 | ) | (175 | ) | ||||||||
Deferred income taxes | 3 | — | 3 | — | ||||||||||||
Loss on asset disposals | 27 | 129 | 25 | 69 | ||||||||||||
Distributable Cash Flow | $ | 31,184 | $ | 33,531 | $ | 61,549 | $ | 61,482 |
Delek Logistics Partners, LP | ||||||||||||||||
Distributable Coverage Ratio Calculation | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Distributions to partners of Delek Logistics, LP | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Limited partners' distribution on common units | $ | 20,755 | 18,784 | $ | 40,769 | $ | 37,071 | |||||||||
General partner's distributions | 423 | 383 | 831 | 756 | ||||||||||||
General partner's incentive distribution rights | 7,736 | 5,817 | 14,752 | 11,154 | ||||||||||||
Total distributions to be paid | $ | 28,914 | $ | 24,984 | $ | 56,352 | $ | 48,981 | ||||||||
Distributable cash flow | $ | 31,184 | $ | 33,531 | $ | 61,549 | 61,482 | |||||||||
Distributable cash flow coverage ratio (1) | 1.08x | 1.34x | 1.09x | 1.26x |
(1) | Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period. |
Delek Logistics Partners, LP | ||||||||||||||||
Segment Data (unaudited) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Pipelines and Transportation | ||||||||||||||||
Net revenues: | ||||||||||||||||
Affiliate | $ | 36,731 | $ | 34,030 | $ | 73,390 | $ | 63,492 | ||||||||
Third party | 7,477 | 3,714 | 11,451 | 7,965 | ||||||||||||
Total pipelines and transportation | 44,208 | 37,744 | 84,841 | 71,457 | ||||||||||||
Cost of sales: | ||||||||||||||||
Cost of materials and other | 7,357 | 5,195 | 12,924 | 9,636 | ||||||||||||
Operating expenses (excluding depreciation and amortization) | 12,728 | 9,933 | 23,562 | 19,555 | ||||||||||||
Segment contribution margin | $ | 24,123 | $ | 22,616 | $ | 48,355 | $ | 42,266 | ||||||||
Total Assets | $ | 525,070 | $ | 439,311 | ||||||||||||
Wholesale Marketing and Terminalling | ||||||||||||||||
Net revenues: | ||||||||||||||||
Affiliates (1) | $ | 25,187 | $ | 19,050 | $ | 51,493 | $ | 51,232 | ||||||||
Third party | 85,947 | 109,486 | 171,491 | 211,512 | ||||||||||||
Total wholesale marketing and terminalling | 111,134 | 128,536 | 222,984 | 262,744 | ||||||||||||
Cost of sales: | ||||||||||||||||
Cost of materials and other | 86,497 | 100,821 | 177,195 | 215,412 | ||||||||||||
Operating expenses (excluding depreciation and amortization) | 4,599 | 4,984 | 9,823 | 7,939 | ||||||||||||
Segment contribution margin | $ | 20,038 | $ | 22,731 | $ | 35,966 | $ | 39,393 | ||||||||
Total Assets | $ | 244,240 | $ | 211,038 | ||||||||||||
Consolidated | ||||||||||||||||
Net revenues: | ||||||||||||||||
Affiliates | $ | 61,918 | $ | 53,080 | $ | 124,883 | $ | 114,724 | ||||||||
Third party | 93,424 | 113,200 | 182,942 | 219,477 | ||||||||||||
Total consolidated | 155,342 | 166,280 | 307,825 | 334,201 | ||||||||||||
Cost of sales: | ||||||||||||||||
Cost of materials and other | 93,854 | 106,016 | 190,119 | 225,048 | ||||||||||||
Operating expenses (excluding depreciation and amortization presented below) | 17,327 | 14,917 | 33,385 | 27,494 | ||||||||||||
Contribution margin | 44,161 | 45,347 | 84,321 | 81,659 | ||||||||||||
General and administrative expenses | 5,293 | 3,747 | 9,766 | 6,722 | ||||||||||||
Depreciation and amortization | 6,639 | 7,019 | 13,213 | 13,019 | ||||||||||||
Loss (gain) on asset disposals | (27 | ) | (129 | ) | (25 | ) | (69 | ) | ||||||||
Operating income | $ | 32,256 | $ | 34,710 | $ | 61,367 | $ | 61,987 | ||||||||
Total Assets | $ | 769,310 | $ | 650,349 |
(1) | Affiliate revenue for the wholesale marketing and terminalling segment is presented net of amortization expense pertaining to the marketing contract intangible we acquired in connection with the Big Spring acquisition. |
Delek Logistics Partners, LP | ||||||||||||||||
Segment Capital Spending | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Pipelines and Transportation | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Maintenance capital spending | $ | 818 | $ | 540 | $ | 1,228 | $ | 1,057 | ||||||||
Discretionary capital spending | — | 286 | 14 | 1,177 | ||||||||||||
Segment capital spending | $ | 818 | $ | 826 | $ | 1,242 | $ | 2,234 | ||||||||
Wholesale Marketing and Terminalling | ||||||||||||||||
Maintenance capital spending | $ | 302 | $ | 436 | 409 | $ | 574 | |||||||||
Discretionary capital spending | 222 | 990 | 595 | 1,641 | ||||||||||||
Segment capital spending | $ | 524 | $ | 1,426 | $ | 1,004 | $ | 2,215 | ||||||||
Consolidated | ||||||||||||||||
Maintenance capital spending | $ | 1,120 | $ | 976 | $ | 1,637 | $ | 1,631 | ||||||||
Discretionary capital spending | 222 | 1,276 | 609 | 2,818 | ||||||||||||
Total capital spending | $ | 1,342 | $ | 2,252 | $ | 2,246 | $ | 4,449 |
Delek Logistics Partners, LP | ||||||||||||||||
Segment Data (Unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Pipelines and Transportation Segment: | ||||||||||||||||
Throughputs (average bpd) | ||||||||||||||||
Lion Pipeline System: | ||||||||||||||||
Crude pipelines (non-gathered) | 37,625 | 56,088 | 33,179 | 55,412 | ||||||||||||
Refined products pipelines to Enterprise Systems | 29,893 | 48,013 | 26,511 | 48,879 | ||||||||||||
SALA Gathering System | 17,777 | 16,738 | 17,390 | 16,705 | ||||||||||||
East Texas Crude Logistics System | 19,550 | 16,902 | 18,835 | 17,478 | ||||||||||||
Wholesale Marketing and Terminalling Segment: | ||||||||||||||||
East Texas - Tyler Refinery sales volumes (average bpd) (1) | 71,123 | 79,330 | 69,857 | 76,304 | ||||||||||||
Big Spring marketing throughputs (average bpd)(2) | 82,964 | 80,536 | 85,339 | 79,165 | ||||||||||||
West Texas marketing throughputs (average bpd) | 11,404 | 12,261 | 12,418 | 14,091 | ||||||||||||
West Texas gross margin per barrel | $ | 6.25 | $ | 8.06 | $ | 4.84 | $ | 6.43 | ||||||||
Terminalling throughputs (average bpd) (3) | 156,922 | 162,383 | 154,643 | 154,917 |
(1) | Excludes jet fuel and petroleum coke. |
(2) | Throughputs for the six months ended June 30, 2018 are for the 122 days we marketed certain finished products produced at or sold from the Big Spring Refinery following the execution of the Big Spring Marketing Agreement, effective March 31, 2018. |
(3) | Consists of terminalling throughputs at our Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas, our El Dorado and North Little Rock, Arkansas and our Memphis and Nashville, Tennessee terminals. Throughputs for the Big Spring terminal for six months ended June 30, 2018 are for the 122 days we operated the terminal following its acquisition effective March 1, 2018. Barrels per day are calculated for only the days we operated each terminal. Total throughput for the three and six months ended June 30, 2018 was 26.0 million barrels, which averaged 143,593 bpd for the period. |
Delek Logistics Partners, LP | |||||||||||||
Reconciliation of Forecasted Incremental Annualized Net Income to Forecasted Incremental Annualized Adjusted EBITDA for the Red River Pipeline Joint Venture | |||||||||||||
($ in millions) | |||||||||||||
Pre-Expansion Range (closing to est. Expansion completion) | Post-Expansion Range (12 months following Expansion) | ||||||||||||
Forecasted Incremental Annualized Net Income | $ | 5.6 | $ | 7.6 | $ | 10.1 | $ | 15.1 | |||||
Add Forecasted Incremental Amounts for: | |||||||||||||
Interest Expense, net | 6.6 | 6.6 | 7.6 | 7.6 | |||||||||
Depreciation and amortization | — | — | — | — | |||||||||
Forecasted Incremental EBITDA | $ | 12.2 | $ | 14.2 | $ | 17.7 | $ | 22.7 | |||||
Adjustments: | |||||||||||||
Add Forecasted incremental distributions from operations of non-controlled entities in excess of earnings | $ | 1.3 | $ | 1.3 | $ | 2.3 | $ | 2.3 | |||||
Forecasted Incremental Annualized Adjusted EBITDA | $ | 13.5 | $ | 15.5 | $ | 20.0 | $ | 25.0 |
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