Q4 2021 Shell Midstream Partners LP Earnings Call
Good morning, Ladies and gentlemen, my name is Livia and I will be your.
A conference operator today.
At this time I would like to welcome everyone to today's webcast.
All participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session. Just a question. During this session you will need to press. The Star then one key on your Touchtone telephone.
I will now turn the call over to Jamie Parker Investor Relations Officer, you May begin your conference.
Thank you.
Welcome to today's webcast for shell Midstream partners with me today are Steve Ledbetter, CEO , Shawn Carsten, CFO , and Sean jewelry, VP commercial and business development.
Slide two contains our safe Harbor statement.
We will be making forward looking statements related to future events and expectations during the presentation and Q&A session.
Actual results may differ materially from such statements and factors that could cause actual results to be different are included here as well as in today's press release and under risk factors in our filings with the SEC.
Today's call also contains certain non-GAAP financial measures. Please refer to the earnings press release and appendix one of this presentation for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measures.
We will take questions at the end of the presentation and with that I'll turn the call over to Steve Ledbetter. Thanks.
Thanks, Jamie.
And welcome to our fourth quarter earnings webcast no doubt you have all seen the recent announcement that our board received a non binding preliminary offer from shell pipeline company to acquire all of our remaining publicly held units at $12 89 per unit.
The board has appointed accomplished committee to review and evaluate and negotiate the offer of course, if a transaction materializes. It will be subject to a number of contingencies, including board and conflicts committee approval as well as the execution of a definitive agreement.
For now we are continuing business as usual we will continue.
To focus on delivering unitholder value by fueling stable ratable cash flows and honoring our contracts and commitments to our customers and partners. Our day to day business focus has not changed and we will remain steadfast throughout the process.
In light of the announcement, we will suspend providing forward guidance as well as our formal unit holder engagement program, such as attending Investor conferences and Roadshows. We will however continue to report on our operational and financial performance as usual so with that I'll turn it over to Shaun to walk through the financial results.
For the fourth quarter Shawn Thanks, Steve. So first let me cover a few of our key financial metrics for the quarter.
Our total revenue was $141 million, an increase of $13 million from the third quarter. This increase was primarily related to increased transportation revenue as our assets returned to normal operations. Following the hurricane impacts experienced in Q3.
Operating expense was $87 million up about $8 million from the prior quarter. This was mostly due to timing of normal maintenance expenses being delayed by the storm.
Income from equity investments was $59 million down about $27 million from the prior quarter, mostly related to the impairment charge recorded by colonial.
All of this was partially offset by increased earnings from Mars and Amberjack.
So with all of this adjusted EBITDA attributable to the partnership was 167 million.
And after interest expense maintenance capital and other adjustments total cash available for distribution was $142 million.
Our partnership declared a distribution of <unk> 30 per LP unit. This resulted in a coverage ratio for the quarter one two times.
And finally, we incurred $4 million of maintenance Capex in the fourth quarter and this was a mix of various routine maintenance projects across the assets.
And as of December 31, the partnership had total debt outstanding of $2 7 billion. This equates to a debt to EBITDA ratio of four times based on annualized Q4 adjusted EBITDA.
In light of the offer from shell and our suspension of forward guidance. The Q&A portion of our call today will be limited to our operational and financial performance for the fourth quarter.
We will not be able to elaborate any further regarding shells offer we will not be able to take questions relating related to future guidance for future performance.
So thank you again for joining our call today.
It doesn't look like we have any questions in the queue. So with that I'll turn the call back over to Jane.
Everyone. We thank you very much for your interest in shell Midstream partners. If you have any follow up questions. Following today's presentation and call. Please feel free to call me directly my contact information can be found on the presentation materials as well as on our website shell midstream partners Dot com.
Ladies and gentlemen.
Yes.
Thank you.
You may now disconnect.
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