2013-02-11 22:31:08 -
SAN ANTONIO - February 11, 2013 - Tesoro Logistics LP (NYSE: TLLP) ("TLLP" or
the "Partnership") today reported fourth quarter 2012 net income of $15.7
million, or $0.53 per diluted common limited partner unit. This amount includes
historical results reported by the predecessor on assets TLLP acquired during
the quarter. Excluding predecessor results, TLLP earned net income of $16.6
million.
For the twelve months ended December 31, 2012 (the "2012 Period"), the
Partnership reported net income of $55.5 million, or $1.89 per diluted common
limited partner unit. Excluding historical results reported by the predecessor
on assets acquired during the 2012 Period, TLLP reported net income of $56.8
million.
Distributable cash flow,
excluding predecessor results, for the fourth quarter
was $19.6 million. On January 23, 2013, the Partnership announced its quarterly
cash distribution of $22.9 million, or $0.4725 per limited partnership unit, or
$1.89 on an annualized basis. This distribution represents a four percent
increase over the quarterly distribution of $0.4550 per unit ($1.82 per unit on
an annualized basis) paid in November 2012 and a thirty percent increase over
the fourth quarter 2011 distribution paid in February 2012. Distributable cash
flow, excluding predecessor results, for the 2012 Period was $67.0 million.
"This was another strong quarter for TLLP as we continued to capture the
benefits of our growth strategy," said Greg Goff, TLLP's Chairman and Chief
Executive Officer. "We continued to focus on delivering organic growth from our
existing assets with the expansion of our proprietary trucking fleet and
increasing volumes through the High Plains System. We captured the first full
quarter from the Long Beach assets acquisition and completed the third asset
purchase from Tesoro with the acquisition of the Anacortes Rail Facility.
Additionally, we announced the acquisition of the Chevron Northwest Products
System which will be immediately accretive and adds significant third party
revenue."
Fourth Quarter 2012 Highlights
Results of operations for the three months ended December 31, 2012 include the
historical results prior to our acquisition of the Anacortes Rail Facility
acquired from Tesoro Refining and Marketing Company ("Tesoro") during the
quarter. As a result, operating income and volumes are not comparable on a
period-to-period basis. We have provided additional information that is
comparable on a period-to-period basis focusing on the results of operations of
TLLP assets following their acquisition from Tesoro and excluding predecessor
results of operations. A reconciliation of the TLLP results to the full fourth
quarter results can be found in the attached tables.
Revenues for the fourth quarter totaled $47.7 million which were up $6.9 million
from the prior quarter, excluding predecessor results. Volumes and revenues
within the Crude Oil Gathering segment increased over the prior quarter, driven
by strong demand for crude oil in the Bakken region. Additionally, revenues in
the Terminalling, Transportation and Storage segment increased quarter over
quarter due to a full quarter's throughput contribution from the Long Beach
assets acquired mid-third quarter and a partial quarter contribution from the
Anacortes Rail Unloading Facility.
Total costs and expenses for the fourth quarter were $26.5 million. Excluding
predecessor results, total costs and expenses for the fourth quarter totaled
$25.6 million, which were up $2.1 million from the prior quarter. The increase
in operating expenses during the quarter is primarily attributable to a full
quarter's operation of the Long Beach assets and the addition of the Anacortes
Rail Unloading Facility during the fourth quarter. Costs for the fourth quarter
include $1.2 million of transaction costs related to the recently acquired
assets and the announced acquisition of the Chevron Northwest Products System.
The resulting EBITDA for the fourth quarter was $25.7 million, excluding
predecessor results.
On October 5, 2012, TLLP closed a public offering of 4,255,000 common units at
an offering price of $41.80 per unit, which included a 555,000 unit over-
allotment option that was exercised by the underwriters. Net proceeds to TLLP
from the sale of the units were approximately $171 million.
On November 15, 2012, TLLP purchased the Anacortes Rail Unloading Facility owned
by Tesoro's subsidiary, Tesoro Refining and Marketing Company, for a purchase
price of $180 million, which included cash of $162 million and Tesoro Logistics
equity valued at approximately $18 million. In connection with the closing of
the transaction, Tesoro and the Partnership entered into a throughput and use
agreement for the rail unloading facility. The Anacortes Rail Unloading Facility
added about $2.4 million of segment EBITDA following its acquisition on November
15, 2012.
On December 11, 2012, TLLP announced that it had executed a definitive agreement
to purchase Chevron Pipe Line Company's Northwest Products System for $400
million. The Northwest Products System allows TLLP to grow its portfolio of
well-positioned, fee-based logistics assets in the western U.S., while
significantly increasing third-party revenue. The Northwest Products System is
expected to generate annual EBITDA of about $33 million in the first twelve
months post-closing. The transaction is expected to close during the first
quarter of 2013, subject to regulatory approval.
On January 4, 2013 TLLP amended its $300 million revolving credit facility to
increase the capacity to $500 million and reduce interest rates in support of
our expanding operations and opportunities.
On January 14, 2013, TLLP closed a public offering of 9,775,000 common units at
an offering price of $41.70 per unit, which included a 1,275,000 unit over-
allotment option that was exercised by the underwriters. The Partnership
expects to use net proceeds from the offering, totaling approximately $392
million, to fund a portion of the consideration for the Partnership's announced
acquisition of Chevron Pipe Line Company's Northwest Products System.
2012 Highlights
Revenues for the 2012 Period totaled $156.8 million. Excluding predecessor
results, revenues for the 2012 Period totaled $148.8 million. Relative to the
fourth quarter of 2011, the Partnership ended the year with pipeline throughput
volumes in the Crude Oil Gathering segment up almost thirty percent, driven by
expansion of Tesoro's Mandan Refinery, additional volumes destined for Tesoro's
Anacortes refinery and the establishment of interconnection points with other
regional pipelines at Richey, Montana and Dry Fork, North Dakota. For the base
assets within the Terminalling, Transportation and Storage segment, five
terminals set record annual throughput volumes for the year, driven by continued
optimization efforts, the physical expansion of the Vancouver terminal and the
revision of the ethanol permit at the Los Angeles terminal. Total EBITDA for
the 2012 Period was $76.7 million, excluding predecessor results.
The Partnership continues to be focused on driving EBITDA growth into the future
through the completion of current and future organic growth projects within the
Crude Oil Gathering and Terminalling, Transportation and Storage segments, as
well as the successful integration of the Northwest Products System. Excluding
announced acquisitions, which are currently pending regulatory approval, the
Partnership expects to generate EBITDA of about $140 million in 2013.
Public Invited to Listen to Analyst Conference Call
At 7:30 a.m. CST on February 12, 2013, TLLP will broadcast, live, its conference
call with analysts regarding fourth quarter 2012 and annual results and other
business matters. Interested parties may listen to the live conference call over
the Internet by logging on to
www.tesorologistics.com.
About Tesoro Logistics LP
Tesoro Logistics LP, headquartered in San Antonio, Texas, is a fee-based,
growth-oriented Delaware limited partnership formed by Tesoro Corporation to
own, operate, develop and acquire crude oil and refined products logistics
assets.
This earnings release contains certain statements that are "forward-looking"
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, concerning expected growth
projects and our expectations about 2013 EBITDA, as well as expectations
regarding the timing and benefits of the Chevron Northwest Products System
acquisition, including expectations regarding accretion, third party revenue,
EBITDA contribution and integration. For more information concerning factors
that could affect these statements see our annual report on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K filed with the Securities
and Exchange Commission. We undertake no obligation to publicly release the
result of any revisions to any such forward-looking statements that may be made
to reflect events or circumstances that occur, or which we become aware of,
after the date hereof.
Contact:
Investors:
Louie Rubiola, Director, Investor Relations, (210) 626-4355
Media:
Tesoro Media Relations,
media@tsocorp.com, (210) 626-7702
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present net income, distributable cash flow, earnings
before interest, income taxes, depreciation and amortization expenses ("EBITDA")
and related operational information for the three and twelve months ended
December 31, 2012 and 2011. The information presented contains the unaudited
combined financial results of Tesoro Logistics LP Predecessor (the "TLLP
Predecessor"), our predecessor for accounting purposes, for periods presented
through April 25, 2011. The TLLP Predecessor includes the financial results of
the initial assets acquired from Tesoro during the initial public offering (the
"Initial Offering"). The unaudited combined consolidated financial results for
the three and twelve months ended December 31, 2012 and 2011 also include the
results of operations for Tesoro Logistics LP ("TLLP" or the
"Partnership") for
the period beginning April 26, 2011, the date TLLP commenced operations.
The financial information contained herein of the TLLP Predecessor and TLLP have
been retrospectively adjusted to include the historical results of the Martinez
crude oil marine terminal assets (collectively, the "Martinez Crude Oil Marine
Terminal") prior to the acquisition through April 1, 2012, the Long Beach marine
terminal assets and related short-haul pipelines, including the Los Angeles
short-haul pipelines (collectively, the "Long Beach Assets") prior to the
acquisition through September 14, 2012 and the Anacortes rail car unloading
facility assets (collectively, the "Anacortes Rail Facility") prior to the
acquisition through November 15, 2012. We refer to the historical results of
the TLLP Predecessor, the Martinez Crude Oil Marine Terminal, the Long Beach
Assets and the Anacortes Rail Facility prior to the acquisition dates
collectively as our "Predecessor(s)." The results of the Martinez Crude Oil
Marine Terminal, the Long Beach Assets and the Anacortes Rail Facility are
included in the Terminalling, Transportation and Storage segment.
Our Predecessors generally recognized only the costs and did not record revenue
for transactions with Tesoro in the Terminalling, Transportation and Storage
segment or for trucking services in the Crude Oil Gathering segment prior to the
Initial Offering and the subsequent acquisitions. Accordingly, the revenues in
our Predecessors' historical combined financial statements relate only to
amounts received from third parties for these services and amounts received from
affiliates with respect to transportation regulated by the Federal Energy
Regulatory Commission and the North Dakota Public Service Commission on our High
Plains system. Affiliate revenues have been recorded for all of our assets in
the Crude Oil Gathering segment and the Terminalling, Transportation and Storage
segment subsequent to the commencement of the commercial agreements with Tesoro
upon completion of the Initial Offering and subsequent acquisitions. As a
result, the information included in the following tables is not comparable on a
year-over-year basis.
TESORO LOGISTICS LP
RESULTS OF OPERATIONS
(Unaudited)
(In thousands, except units and per unit amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------------- ----------------------------
2012 2011 2012 2011
-------------- -------------- -------------- -------------
REVENUES (a)
Crude Oil
Gathering $ 21,410 $ 14,912 $ 72,432 $ 44,959
Terminalling,
Transportation and
Storage 26,328 14,545 84,407 42,378
-------------- -------------- -------------- -------------
Total Revenues 47,738 29,457 156,839 87,337
-------------- -------------- -------------- -------------
COSTS AND EXPENSES
Operating and
maintenance
expenses 18,091 14,006 63,083 47,149
Depreciation and
amortization
expenses 3,934 2,828 13,057 11,277
General and
administrative
expenses (a) 4,155 2,778 15,713 8,776
Loss on asset
disposals 278 - 535 26
-------------- -------------- -------------- -------------
Total Costs and
Expenses 26,458 19,612 92,388 67,228
-------------- -------------- -------------- -------------
OPERATING INCOME 21,280 9,845 64,451 20,109
Less: Interest and
financing costs,
net 5,632 548 8,992 1,610
Add: Interest
income 48 - 48 -
-------------- -------------- -------------- -------------
NET INCOME 15,696 9,297 55,507 18,499
Less: Loss
attributable to
Predecessors (876 ) (2,249 ) (1,284 ) (16,069 )
-------------- -------------- -------------- -------------
Net income
attributable to
partners 16,572 11,546 56,791 34,568
Less: General
partner's interest
in net income,
including
incentive
distribution
rights 1,238 232 2,674 692
-------------- -------------- -------------- -------------
Limited partners'
interest in net
income $ 15,334 $ 11,314 $ 54,117 $ 33,876
-------------- -------------- -------------- -------------
Net income per
limited partner
unit:
Common - basic $ 0.53 $ 0.37 $ 1.90 $ 1.11
Common - diluted $ 0.53 $ 0.37 $ 1.89 $ 1.11
Subordinated -
basic and diluted $ 0.30 $ 0.37 $ 1.47 $ 1.11
Weighted average
limited partner
units outstanding:
Common units -
basic 20,158,703 15,254,890 16,614,668 15,254,890
Common units -
diluted 20,270,174 15,275,844 16,708,950 15,282,366
Subordinated units
- basic and
diluted 15,254,890 15,254,890 15,254,890 15,254,890
Cash distributions
per unit (b) $ 0.4725 $ 0.3625 $ 1.7150 $ 0.9573
TESORO LOGISTICS LP
RESULTS OF OPERATIONS
RECONCILIATION OF PARTNERSHIP AND PREDECESSOR (c)
(Unaudited)
(In thousands)
Three Months
Ended
Tesoro December
Logistics LP Predecessors 31, 2012
----------------- -------------- ---------------
REVENUES (a)
|
Crude Oil Gathering $ 21,410 | $ - $ 21,410
|
Terminalling, Transportation |
and Storage 26,328 | - 26,328
----------------- | -------------- ---------------
Total Revenues 47,738 | - 47,738
----------------- | -------------- ---------------
COSTS AND EXPENSES |
|
Operating and maintenance |
expenses 17,621 | 470 18,091
|
Depreciation and |
amortization expenses 3,534 | 400 3,934
|
General and administrative |
expenses (a) 4,149 | 6 4,155
|
Loss on asset disposals 278 | - 278
----------------- | -------------- ---------------
Total Costs and Expenses 25,582 | 876 26,458
----------------- | -------------- ---------------
OPERATING INCOME (LOSS) 22,156 | (876 ) 21,280
|
Less: Interest and financing |
costs, net 5,632 | - 5,632
|
Add: Interest income 48 | - 48
----------------- | -------------- ---------------
NET INCOME (LOSS) 16,572 | (876 ) 15,696
|
Less: Loss attributable to |
Predecessors - | (876 ) (876 )
----------------- | -------------- ---------------
Net income attributable to |
partners $ 16,572 | $ - $ 16,572
----------------- | -------------- ---------------
Year Ended
Tesoro December
Logistics LP Predecessors 31, 2012
----------------- -------------- --------------
REVENUES (a)
|
Crude Oil Gathering $ 72,432 | $ - $ 72,432
|
Terminalling, Transportation |
and Storage 76,416 | 7,991 84,407
----------------- | -------------- --------------
Total Revenues 148,848 | 7,991 156,839
----------------- | -------------- --------------
COSTS AND EXPENSES |
|
Operating and maintenance |
expenses 56,587 | 6,496 63,083
|
Depreciation and amortization |
expenses 10,969 | 2,088 13,057
|
General and administrative |
expenses (a) 15,266 | 447 15,713
|
Loss on asset disposals 291 | 244 535
----------------- | -------------- --------------
Total Costs and Expenses 83,113 | 9,275 92,388
----------------- | -------------- --------------
OPERATING INCOME (LOSS) 65,735 | (1,284 ) 64,451
|
Less: Interest and financing |
costs, net 8,992 | - 8,992
|
Add: Interest income 48 | - 48
----------------- | -------------- --------------
NET INCOME (LOSS) 56,791 | (1,284 ) 55,507
|
Less: Loss attributable to |
Predecessors - | (1,284 ) (1,284 )
----------------- | -------------- --------------
Net income attributable to |
partners $ 56,791 | $ - $ 56,791
----------------- | -------------- --------------
TESORO LOGISTICS LP
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP
(Unaudited)
(In thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------- ------------------------
2012 2011 2012 2011
-------------- ------------ ------------ -----------
Reconciliation of EBITDA
and Distributable Cash
Flow to Net Income:
Net income $ 15,696 $ 9,297 $ 55,507 $ 18,499
Add: Depreciation and
amortization expenses 3,934 2,828 13,057 11,277
Add: Interest and
financing costs, net 5,632 548 8,992 1,610
Less: Interest income 48 - 48 -
------------ ------------ ------------ -----------
EBITDA (c) $ 25,214 $ 12,673 $ 77,508 $ 31,386
------------ ------------ ------------ -----------
Less: Maintenance capital
expenditures (d) 3,794 2,849 10,719 8,268
Less: Interest and
financing costs, net 5,632 548 8,992 1,610
Add: Reimbursement for
maintenance capital
expenditures (d) 3,241 - 6,169 8
Add: Non-cash unit-based
compensation expense 328 178 1,191 479
Add: Loss on asset
disposals 278 - 535 26
Add: Change in deferred
revenue related to
shortfall payments 130 - 309 -
Add: Interest income 48 - 48 -
Add: Other reimbursements (703 ) - - -
------------ ------------ ------------ -----------
Distributable Cash Flow
(c) $ 19,110 $ 9,454 $ 66,049 $ 22,021
------------ ------------ ------------ -----------
Reconciliation of EBITDA to Net Cash from Operating
Activities:
Net cash from operating
activities $ 23,834 $ 12,261 $ 77,505 $ 26,505
Less: Changes in assets
and liabilities 3,115 (196 ) 6,068 (4,196 )
Less: Amortization of debt
issuance costs 483 154 1,147 420
Less: Unit-based
compensation expense 328 178 1,191 479
Less: Loss on asset
disposals 278 - 535 26
Less: Interest income 48 - 48 -
Add: Interest and
financing costs, net 5,632 548 8,992 1,610
------------ ------------ ------------ -----------
EBITDA (c) $ 25,214 $ 12,673 $ 77,508 $ 31,386
------------ ------------ ------------ -----------
TESORO LOGISTICS LP
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP
RECONCILIATION OF PARTNERSHIP AND PREDECESSORS (c)
(Unaudited)
(In thousands)
Three Months
Ended
Tesoro December
Logistics LP Predecessors 31, 2012
----------------- -------------- ---------------
Reconciliation of EBITDA and
Distributable Cash Flow to
Net Income (Loss):
|
Net income (loss) $ 16,572 | $ (876 ) $ 15,696
|
Add: Depreciation and |
amortization expenses 3,534 | 400 3,934
|
Add: Interest and financing |
costs, net 5,632 | - 5,632
|
Less: Interest income 48 | - 48
----------------- | -------------- ---------------
EBITDA (c) $ 25,690 | $ (476 ) $ 25,214
----------------- | -------------- ---------------
Less: Maintenance capital |
expenditures (d) 3,794 | - 3,794
|
Less: Interest and financing |
costs, net 5,632 | - 5,632
|
Add: Reimbursement for |
maintenance capital |
expenditures (d) 3,241 | - 3,241
|
Add: Non-cash unit-based |
compensation expense 328 | - 328
|
Add: Loss on asset disposals 278 | - 278
|
Add: Change in deferred |
revenue related to shortfall |
payments 130 | - 130
|
Add: Interest income 48 | - 48
|
Add: Other reimbursements (703 ) | - (703 )
----------------- | -------------- ---------------
Distributable Cash Flow (c) $ 19,586 | $ (476 ) $ 19,110
----------------- | -------------- ---------------
|
|
Reconciliation of EBITDA to |
Net Cash from (used in) |
Operating Activities: |
|
Net cash from (used in) |
operating activities $ 23,666 | $ 168 $ 23,834
|
Less: Changes in assets and |
liabilities 2,471 | 644 3,115
|
Less: Amortization of debt |
issuance costs 483 | - 483
|
Less: Unit-based |
compensation expense 328 | - 328
|
Less: Loss on asset |
disposals 278 | - 278
|
Less: Interest income 48 | - 48
|
Add: Interest and financing |
costs, net 5,632 | - 5,632
----------------- | -------------- ---------------
EBITDA (c) $ 25,690 | $ (476 ) $ 25,214
----------------- | -------------- ---------------
Year Ended
Tesoro December
Logistics LP Predecessors 31, 2012
----------------- -------------- --------------
Reconciliation of EBITDA and
Distributable Cash Flow to
Net Income (Loss):
|
Net income (loss) $ 56,791 | $ (1,284 ) $ 55,507
|
Add: Depreciation and |
amortization expenses 10,969 | 2,088 13,057
|
Add: Interest and financing |
costs, net 8,992 | - 8,992
|
Less: Interest income 48 | - 48
----------------- | -------------- --------------
EBITDA (c) $ 76,704 | $ 804 $ 77,508
----------------- | -------------- --------------
Less: Maintenance capital |
expenditures (d) 8,701 | 2,018 10,719
|
Less: Interest and financing |
costs, net 8,992 | - 8,992
|
Add: Reimbursement for |
maintenance capital |
expenditures (d) 6,169 | - 6,169
|
Add: Non-cash unit-based |
compensation expense 1,191 | - 1,191
|
Add: Loss on asset disposals 291 | 244 535
|
Add: Change in deferred |
revenue related to shortfall |
payments 309 | - 309
|
Add: Interest income 48 | - 48
----------------- | -------------- --------------
Distributable Cash Flow (c) $ 67,019 | $ (970 ) $ 66,049
----------------- | -------------- --------------
|
|
Reconciliation of EBITDA to |
Net Cash from Operating |
Activities: |
|
Net cash from operating |
activities $ 75,763 | $ 1,742 $ 77,505
|
Less: Changes in assets and |
liabilities 5,374 | 694 6,068
|
Less: Amortization of debt |
issuance costs 1,147 | - 1,147
|
Less: Unit-based compensation |
expense 1,191 | - 1,191
|
Less: Loss on asset disposals 291 | 244 535
|
Less: Interest income 48 | - 48
|
Add: Interest and financing |
costs, net 8,992 | - 8,992
----------------- | -------------- --------------
EBITDA (c) $ 76,704 | $ 804 $ 77,508
----------------- | -------------- --------------
TESORO LOGISTICS LP
SELECTED OPERATING SEGMENT DATA
(Unaudited)
(In thousands, except barrel and per barrel amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------- ------------------------
2012 2011 2012 2011
------------ ------------ ------------ -----------
OPERATING SEGMENTS
CRUDE OIL GATHERING
Pipeline:
Pipeline revenues $ 9,190 $ 7,558 $ 33,012 $ 26,839
Pipeline throughput
(barrels per day ("bpd"))
(e) 77,459 60,064 66,615 57,900
Average pipeline revenue
per barrel (f) $ 1.29 $ 1.37 $ 1.35 $ 1.27
Trucking:
Trucking revenues (a) $ 12,220 $ 7,354 $ 39,420 $ 18,120
Trucking volume (bpd) 46,837 27,007 37,537 24,059
Average trucking revenue
per barrel (f) $ 2.84 $ 2.96 $ 2.87 $ 2.06
------------ ------------ ------------ -----------
Total Revenues $ 21,410 $ 14,912 $ 72,432 $ 44,959
------------ ------------ ------------ -----------
Costs and Expenses:
Operating and maintenance
expenses $ 12,063 $ 7,847 $ 39,774 $ 23,721
Depreciation and
amortization expenses 901 786 3,383 3,141
General and administrative
expenses (a) 511 483 2,875 1,304
Gain on asset disposals - - - (10 )
------------ ------------ ------------ -----------
Total Costs and Expenses 13,475 9,116 46,032 28,156
------------ ------------ ------------ -----------
CRUDE OIL GATHERING
SEGMENT OPERATING INCOME $ 7,935 $ 5,796 $ 26,400 $ 16,803
------------ ------------ ------------ -----------
TERMINALLING, TRANSPORTATION AND
STORAGE
Terminalling:
Terminalling revenues (a) $ 23,092 $ 11,610 $ 71,896 $ 34,077
Terminalling throughput
(bpd) (g) 383,660 328,794 344,431 314,386
Average terminalling
revenue per barrel (f) $ 0.65 $ 0.38 $ 0.57 $ 0.30
Pipeline transportation:
Pipeline transportation
revenues (a) $ 1,856 $ 1,597 $ 7,072 $ 4,673
Pipeline transportation
throughput (bpd) (g) 79,129 91,757 88,857 90,721
Average pipeline
transportation revenue per
barrel (f) $ 0.25 $ 0.19 $ 0.22 $ 0.14
Storage:
Storage revenues (a) $ 1,380 $ 1,338 $ 5,439 $ 3,628
Storage capacity reserved
(shell capacity barrels) 878,000 878,000 878,000 878,000
Storage revenue per barrel
on shell capacity (per
month) (f) $ 0.52 $ 0.51 $ 0.52 $ 0.50
------------ ------------ ------------ -----------
Total Revenues $ 26,328 $ 14,545 $ 84,407 $ 42,378
------------ ------------ ------------ -----------
Costs and Expenses:
Operating and maintenance
expenses $ 6,028 $ 6,159 $ 23,309 $ 23,428
Depreciation and
amortization expenses 3,033 2,042 9,674 8,136
General and administrative
expenses (a) 647 794 3,131 2,352
Loss on asset disposals 278 - 535 36
------------ ------------ ------------ -----------
Total Costs and Expenses 9,986 8,995 36,649 33,952
------------ ------------ ------------ -----------
TERMINALLING,
TRANSPORTATION AND STORAGE
SEGMENT OPERATING INCOME $ 16,342 $ 5,550 $ 47,758 $ 8,426
------------ ------------ ------------ -----------
TESORO LOGISTICS LP
SELECTED OPERATING SEGMENT DATA
RECONCILIATION OF PARTNERSHIP AND PREDECESSOR (c)
(Unaudited)
(In thousands, except barrel and per barrel amounts)
Three Months
Ended
Tesoro December
Logistics LP Predecessors 31, 2012
----------------- -------------- ---------------
REVENUES (a)
|
Terminalling revenues $ 23,092 | $ - $ 23,092
|
Pipeline transportation |
revenues 1,856 | - 1,856
|
Storage revenues 1,380 | - 1,380
----------------- | -------------- ---------------
Total Revenues 26,328 | - 26,328
|
COSTS AND EXPENSES |
|
Operating and maintenance |
expenses 5,558 | 470 6,028
|
Depreciation and |
amortization expenses 2,633 | 400 3,033
|
General and administrative |
expenses (a) 641 | 6 647
|
Loss on asset disposals 278 | - 278
----------------- | -------------- ---------------
Total Costs and Expenses 9,110 | 876 9,986
----------------- | -------------- ---------------
TERMINALLING, TRANSPORTATION |
AND STORAGE SEGMENT |
OPERATING INCOME (LOSS) $ 17,218 | $ (876 ) $ 16,342
----------------- | -------------- ---------------
VOLUMES (bpd) |
|
Terminalling throughput 366,574 |
|
Average terminalling revenue |
per barrel (f) $ 0.68 |
|
Pipeline transportation |
throughput 79,129 |
|
Average pipeline |
transportation revenue per |
barrel (f) $ 0.25 |
|
Storage capacity reserved |
(shell capacity barrels) 878,000 |
|
Storage revenue per barrel |
on shell capacity (per |
month) (f) $ 0.52 |
Year Ended
Tesoro December
Logistics LP Predecessors 31, 2012
----------------- -------------- --------------
REVENUES (a)
|
Terminalling revenues $ 64,158 | $ 7,738 $ 71,896
|
Pipeline transportation |
revenues 6,819 | 253 7,072
|
Storage revenues 5,439 | - 5,439
----------------- | -------------- --------------
Total Revenues 76,416 | 7,991 84,407
|
COSTS AND EXPENSES |
|
Operating and maintenance |
expenses 16,813 | 6,496 23,309
|
Depreciation and amortization |
expenses 7,586 | 2,088 9,674
|
General and administrative |
expenses (a) 2,684 | 447 3,131
|
Loss on asset disposals 291 | 244 535
----------------- | -------------- --------------
Total Costs and Expenses 27,374 | 9,275 36,649
----------------- | -------------- --------------
TERMINALLING, TRANSPORTATION |
AND STORAGE SEGMENT OPERATING |
INCOME (LOSS) $ 49,042 | $ (1,284 ) $ 47,758
----------------- | -------------- --------------
VOLUMES (bpd) |
|
Terminalling throughput 245,250 |
|
Average terminalling revenue |
per barrel (f) $ 0.71 |
|
Pipeline transportation |
throughput 72,933 |
|
Average pipeline |
transportation revenue per |
barrel (f) $ 0.26 |
|
Storage capacity reserved |
(shell capacity barrels) 878,000 |
|
Storage revenue per barrel on |
shell capacity (per month) |
(f) $ 0.52 |
TESORO LOGISTICS LP
SELECTED FINANCIAL DATA
(Unaudited)
(In thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------ ------------------------
2012 2011 2012 2011
------------ ----------- ------------ -----------
Capital Expenditures
Expansion $ 12,260 $ 6,887 $ 80,633 $ 10,418
Maintenance (d) 3,794 2,849 10,719 8,268
------------ ----------- ------------ -----------
Total Capital Expenditures $ 16,054 $ 9,736 $ 91,352 $ 18,686
------------ ----------- ------------ -----------
TESORO LOGISTICS LP
SELECTED FINANCIAL DATA
RECONCILIATION OF PARTNERSHIP AND PREDECESSOR (c)
(Unaudited)
(In thousands)
Three Months
Ended
Tesoro December
Logistics LP Predecessors 31, 2012
----------------- -------------- ---------------
Capital Expenditures
|
Expansion $ 9,674 | $ 2,586 $ 12,260
|
Maintenance (d) 3,794 | - 3,794
----------------- | -------------- ---------------
Total Capital Expenditures $ 13,468 | $ 2,586 $ 16,054
----------------- | -------------- ---------------
Year Ended
Tesoro December
Logistics LP Predecessors 31, 2012
----------------- -------------- --------------
Capital Expenditures
|
Expansion $ 29,152 | $ 51,481 $ 80,633
|
Maintenance (d) 8,701 | 2,018 10,719
----------------- | -------------- --------------
Total Capital Expenditures $ 37,853 | $ 53,499 $ 91,352
----------------- | -------------- --------------
TESORO LOGISTICS LP
SELECTED FINANCIAL DATA
(Unaudited)
(In thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- -----------------------
2012 2011 2012 2011
----------- ----------- ------------ ----------
General and Administrative
Expenses (a)
Crude Oil Gathering $ 511 $ 483 $ 2,875 $ 1,304
Terminalling, Transportation
and Storage 647 794 3,131 2,352
Unallocated 2,997 1,501 9,707 5,120
----------- ----------- ------------ ----------
Total General and
Administrative Expenses $ 4,155 $ 2,778 $ 15,713 $ 8,776
----------- ----------- ------------ ----------
TESORO LOGISTICS LP
BALANCE SHEET DATA
(Unaudited)
(In thousands)
December 31, December 31,
2012 2011
------------------ -----------------
Cash and cash equivalents $ 19,290 $ 18,326
Total Assets 363,178 233,809
Total Debt 354,032 50,000
Total Equity (Deficit) (18,123 ) 166,672
TESORO LOGISTICS LP
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP
ANACORTES RAIL FACILITY, EXCLUDING PREDECESSOR (c)
(Unaudited)
(In thousands)
Three Months Ended
December 31, 2012
Reconciliation of EBITDA to Net Income:
Net income $ 1,138
Less: Loss attributable to Predecessor (876 )
---------------------
Net income, excluding Predecessor $ 2,014
---------------------
Add: Depreciation and amortization expenses 383
Add: Interest and financing costs, net -
---------------------
EBITDA (c) $ 2,397
---------------------
TESORO LOGISTICS LP
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP
LONG BEACH ASSETS
(Unaudited)
(In thousands)
Three Months Ended
December 31, 2012
Reconciliation of EBITDA to Net Income:
Net income $ 4,076
Add: Depreciation and amortization expenses 449
Add: Interest and financing costs, net -
---------------------
EBITDA (c) $ 4,525
---------------------
TESORO LOGISTICS LP
RECONCILIATION OF FORECASTED EBITDA TO AMOUNTS UNDER U.S. GAAP
(Unaudited)
(In millions)
Chevron Northwest Products
System
Twelve Months Post-Closing
------------------------------
Reconciliation of Forecasted EBITDA to
Forecasted Net Income:
Forecasted net income $ 3.0
Add: Depreciation and amortization expenses 18.0
Add: Interest and financing costs, net (h) 12.0
------------------------------
Forecasted EBITDA (c) $ 33.0
------------------------------
Full Year 2013
Excluding Announced
Acquisitions
-----------------------------
Reconciliation of Forecasted EBITDA to Forecasted
Net Income:
Forecasted net income $ 101.0
Add: Depreciation and amortization expenses 17.5
Add: Interest and financing costs, net 21.5
-----------------------------
Forecasted EBITDA (c) $ 140.0
-----------------------------
_____________
(a) See discussion of the factors affecting comparability noted on page 4.
The Partnership's results of operations may not be comparable to the
Predecessors' historical results of operations for the reasons described below:
Revenues-- There are differences in the way our Predecessors recorded revenues
and the way the Partnership records revenues after completion of the Initial
Offering and subsequent acquisitions as discussed under "Factors Affecting
Comparability."
General and Administrative Expenses-- Our Predecessors' general and
administrative expenses included direct charges for the management and operation
of our logistics assets and certain expenses allocated by Tesoro for general
corporate services, such as treasury, accounting and legal services. These
expenses were charged, or allocated, to our Predecessors based on the nature of
the expenses. Tesoro continues to charge the Partnership a combination of
direct charges for the management and operation of our logistics assets and a
fixed annual fee for general corporate services, such as treasury, accounting
and legal services. We also incur additional incremental general and
administrative expenses as a result of being a separate publicly-traded
partnership.
(b) On January 23, 2013, we declared a quarterly cash distribution of $0.4725
per limited partner unit for the fourth quarter of 2012.
(c) We define EBITDA as net income (loss) before net interest and financing
costs, interest income and depreciation and amortization expenses. We define
distributable cash flow as EBITDA less net interest and financing costs and
maintenance capital expenditures, plus interest income, loss on asset disposals,
the change in deferred revenue related to shortfall payments, reimbursement by
Tesoro for certain maintenance capital expenditures and other reimbursements by
Tesoro and non-cash unit-based compensation expense. EBITDA and distributable
cash flow are not measures prescribed by U.S. GAAP ("non-GAAP") but are
supplemental financial measures that are used by management and may be used by
external users of our combined consolidated financial statements, such as
industry analysts, investors, lenders and rating agencies, to assess:
* our operating performance as compared to other publicly traded partnerships
in the midstream energy industry, without regard to historical cost basis or
financing methods;
* 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; and
* the viability of acquisitions and other capital expenditure projects and the
returns on investment of various investment opportunities.
We believe that the presentation of EBITDA will provide useful information to
investors in assessing our financial condition and results of operations. The
U.S. GAAP measures most directly comparable to EBITDA are net income (loss) and
net cash from (used in) operating activities. EBITDA should not be considered as
an alternative to U.S. GAAP net income (loss) or net cash from (used in)
operating activities. EBITDA has important limitations as an analytical tool,
because it excludes some, but not all, items that affect net income (loss) and
net cash from (used in) operating activities.
We believe that the presentation of distributable cash flow will provide useful
information to investors as it is a widely accepted financial indicator used by
investors to compare partnership performance, as it provides investors an
enhanced perspective of the operating performance of our assets and the cash our
business is generating. The U.S. GAAP measure most directly comparable to
distributable cash flow is net income (loss). The amounts included in the
calculation of distributable cash flow are derived from amounts separately
presented in our combined consolidated financial statements, with the exception
of deferred revenue related to shortfall payments, maintenance capital
expenditures, reimbursement by Tesoro for certain maintenance capital
expenditures and other reimbursements by Tesoro.
We also include the results of our operations excluding the results of our
Predecessors. We believe that the presentation of our results of operations and
capital expenditures excluding results of our Predecessors will provide useful
information to investors in assessing our financial condition and results of
operations. We believe investors want to analyze operations of our business
under our current commercial agreements with Tesoro.
These non-GAAP financial metrics should not be considered in isolation or as a
substitute for analysis of our results as reported under U.S. GAAP. Our
definitions of these non-GAAP financial metrics may not be comparable to
similarly titled measures of other companies, because they may be defined
differently by other companies in our industry, thereby limiting their utility.
(d) Maintenance capital expenditures include expenditures required to maintain
equipment, equipment reliability, tankage and pipeline integrity and safety, and
to address environmental regulations.
(e) Also includes barrels that were gathered and then delivered into our High
Plains Pipeline by truck.
(f) Management uses average revenue per barrel and storage revenue per barrel
on shell capacity to evaluate performance and compare profitability to other
companies in the industry. There are a variety of ways to calculate average
revenue per barrel; different companies may calculate it in different ways. We
calculate average revenue per barrel as revenue divided by the number of days in
the period divided by throughput (bpd). We calculate storage revenue per barrel
on shell capacity as revenue divided by number of months in the period divided
by shell capacity barrels. Investors and analysts use this financial measure to
help analyze and compare companies in the industry on the basis of operating
performance. These financial measures should not be considered as an alternative
to segment operating income, revenues and operating expenses or any other
measure of financial performance presented in accordance with U.S. GAAP.
(g) Terminalling throughput volumes were higher in the three months and year
ended December 31, 2012 primarily as a result of the completion of the Anacortes
Rail Facility in September 2012. Pipeline transportation throughput volumes in
the three months and year ended December 31, 2012 were lower as a result of
lower throughput volumes in 2012 related to Tesoro's refinery maintenance
activities.
(h) Forecasted net interest and financing costs associated with the Chevron
Northwest Products System acquisition assumes an equal split of debt and equity
financing.
TLLP - 2012 4Q and FY Results:
hugin.info/147417/R/1677252/546933.pdf
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(i) the releases contained herein are protected by copyright and
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Tesoro L
