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

November 12, 2019 GMT

TULSA, Okla.--(BUSINESS WIRE)--Nov 12, 2019--

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

Third quarter 2019 results compared to third quarter of 2018 and other highlights:

  • Revenue of $108.9 million, an increase of 28%;
  • Gross margin of $15.4 million, an increase of 19%;
  • Net income of $5.5 million, an increase of 11%;
  • Adjusted EBITDA attributable to limited partners of $8.7 million, an increase of 21%;
  • Cash and cash equivalents of $12.7 million, an increase of 121% or $7.0 million from June 30, 2019;
  • Net debt leverage ratio of 2.34x, a decrease of 17% from the third quarter of 2018;
  • Cash distribution of $0.21 per unit, consistent with the last ten quarters;
  • Common unit distribution coverage ratio of 2.28x for the third quarter 2019 and 1.62x for the twelve months ended September 30, 2019;
  • In October 2019, we increased the total capacity on our credit facility from $90 million to $110 million.

Peter C. Boylan III, CELP’s Chairman and Chief Executive Officer, stated, “We are pleased to report a strong third quarter driven by our broad and growing suite of environmental services we offer our clients. Our two inspection and integrity segments represented 97% of our revenue and 86% of our gross margin during the first nine months of 2019. During the third quarter, we reduced our long-term debt and increased our cash on hand.”

Mr. Boylan continued, “Revenues of our Pipeline Inspection segment increased 28% during the three months ended September 30, 2019 and gross margins in this segment increased 20% compared to the three months ended September 30, 2018.

“Revenues of our Pipeline & Process Services segment increased 60%, and gross margin 59%, during the three months ended September 30, 2019 compared to the three months ended September 30, 2018. As previously noted, revenues of this segment benefitted from several large projects that were scheduled to begin in the first quarter, but were delayed by adverse weather.

“Revenues of our Environmental Services segment decreased 8% from the prior year period during the three months ended September 30, 2019. 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.

“In 2018 our sponsor, Cypress Energy Holdings, LLC (“CEH”), completed two acquisitions to further broaden our suite of environmental services that we can offer to both the municipal water and energy industries. CEH continues to make solid progress with both of these acquisitions and intends to offer them to the Partnership next year once it has accomplished certain developmental goals. These acquisitions would move us into several new important environmental services including water treatment, in-line inspection (“ILI”), equipment rental, and offshore pipeline and process services. We remain excited about entering the ILI industry with next-generation 5G high resolution magnetic flux leakage ILI technology capable of helping pipeline owners and operators better manage the integrity of their assets in both the energy and municipal water industries. We believe we are the only technology provider today capable of offering this service to the large and diverse municipal water industry that provides drinking water to our communities. Our ownership interests continue to remain fully aligned with our unitholders, as our General Partner and insiders collectively own approximately 76% of our total common and preferred units.”

Mr. Boylan further stated, “The U.S. Pipeline and Hazardous Materials Safety Administration (“PHMSA”) recently finalized a rule that significantly revises certain aspects of the hazardous liquid pipeline safety regulations codified at Title 49 Code of Federal Regulations Parts 190-199. Nearly nine years in the making, the final rule is PHMSA’s response to several significant hazardous liquid pipeline accidents that have occurred in recent years, most notably the 2010 crude oil spill near Marshall, Michigan. The final rule also addresses 2011 and 2016 outstanding congressional mandates and U.S. Government Accountability Office recommendations.

“A version of this rule was initially scheduled for publication in the Federal Register during the last week of the prior presidential administration in 2017. It was held back as a result of the regulatory freeze and subsequent deregulatory review by the Trump administration, which removed certain of the requirements of the prior rule in the recent final rule.

“Effective July 1, 2020, this rule expands requirements to address risks to pipelines outside of environmentally sensitive and populated areas, requiring the performance of periodic integrity assessments and the use of leak detection systems for all regulated hazardous liquids pipelines (except for offshore gathering and regulated rural gathering lines). In addition, the rule makes changes to the integrity management requirements, including revising data integration requirements and emphasizing the use of in-line inspection technology. The long-term increasing demand for environmental services such as pipeline inspection, integrity services, and water solutions remains strong due to our nation’s aging pipeline infrastructure, and we believe we continue to be well-positioned to capitalize on these opportunities.”

Third Quarter:

  • Revenue of $108.9 million for the three months ended September 30, 2019, compared with $84.8 million for the three months ended September 30, 2018, representing a 28% increase.
  • Gross margin of $15.4 million for the three months ended September 30, 2019, compared to $12.9 million for the three months ended September 30, 2018, representing a 19% increase.
  • Net income of $5.5 million for the three months ended September 30, 2019, compared to $5.0 million for the three months ended September 30, 2018, representing an 11% increase. Net income for the three months ended September 30, 2018 included gains on asset sales of $0.8 million.
  • Net income attributable to common unitholders of $3.8 million for the three months ended September 30, 2019, compared to $3.6 million for the three months ended September 30, 2018, representing a 5% increase. Net income attributable to common unitholders for the three months ended September 30, 2018 included gains on asset sales of $0.8 million.
  • Adjusted EBITDA of $9.5 million for the three months ended September 30, 2019 (including noncontrolling interests), compared to $7.6 million for the three months ended September 30, 2018, representing a 25% increase.
  • Adjusted EBITDA attributable to limited partners of $8.7 million for the three months ended September 30, 2019, compared to $7.2 million for the three months ended September 30, 2018, representing a 21% increase.
  • Distributable Cash Flow of $5.8 million for the three months ended September 30, 2019, compared to $5.7 million for the three months ended September 30, 2018. Distributable Cash Flow for the three months ended September 30, 2019 was reduced by $1.0 million of distributions on preferred equity. The preferred equity was issued in May 2018, and the first distribution was paid in November 2018.
  • A net debt (debt, including finance leases, net of cash and cash equivalents) leverage ratio of 2.3x, a credit facility covenant leverage ratio of 2.8x, and a credit facility interest coverage ratio of 6.4x, on September 30, 2019.

Year-To-Date:

  • Revenue of $310.4 million for the nine months ended September 30, 2019, compared with $226.1 million for the nine months ended September 30, 2018, representing a 37% increase.
  • Gross margin of $40.2 million for the nine months ended September 30, 2019, compared to $32.0 million for the nine months ended September 30, 2018, representing a 26% increase.
  • Net income of $12.5 million for the nine months ended September 30, 2019, compared with $9.5 million for the nine months ended September 30, 2018, representing a 32% increase. Net income for the nine months ended September 30, 2018 included gains on asset disposals of $4.1 million.
  • Net income attributable to common unitholders of $8.7 million for the nine months ended September 30, 2019, compared with $7.4 million for the nine months ended September 30, 2018, representing an 18% increase. Net income attributable to common unitholders for the nine months ended September 30, 2018 included gains on asset disposals of $4.1 million.
  • Adjusted EBITDA of $23.1 million for the nine months ended September 30, 2019 (including noncontrolling interests), compared with $16.8 million for the nine months ended September 30, 2018, representing a 38% increase.
  • Adjusted EBITDA attributable to limited partners of $22.0 million for the nine months ended September 30, 2019, compared with $15.7 million for the nine months ended September 30, 2018, representing a 40% increase.
  • Distributable Cash Flow of $13.3 million for the nine months ended September 30, 2019, compared with $9.8 million for the nine months ended September 30, 2018, representing an 36% increase. Distributable Cash Flow for the nine months ended September 30, 2019 was reduced by $3.1 million of distributions on preferred equity. The preferred equity was issued in May 2018, and the first distribution was paid in November 2018.

Highlights include:

  • An attractive mix of environmental service lines driving solid gross margin, EBITDA, and Distributable Cash Flow growth.
  • We deployed an average of 1,540 inspectors per week for the third quarter of 2019 compared to 1,263 inspectors per week in the third quarter of 2018, representing a 22% increase.
  • We disposed 4.0 million barrels of saltwater at an average revenue per barrel of $0.76 during the third quarter of 2019, compared with 4.3 million barrels of saltwater at an average revenue per barrel of $0.78 during the third quarter of 2018.
  • Maintenance capital expenditures for the third quarter of 2019 were $0.2 million, reflecting the minimal maintenance capital expenditures necessary for the operations of our businesses.
  • Our expansion capital expenditures during the first nine months of 2019 totaled $1.2 million. The expansion capital expenditures included the purchase of equipment to support our nondestructive examination inspection 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. Earlier in 2019, our Pipeline Inspection segment reached the highest inspector headcount 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 nine months ended September 30, 2019, 92% of total saltwater disposal volumes came from produced water, and piped water represented 41% 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.
  • The interest rate on our borrowings ranged between 5.54% and 6.02% for the nine months ended September 30, 2019. The interest rate on our revolving credit facility borrowings was 5.54% at September 30, 2019, as we have begun to benefit from recent reductions in interest rates.
  • 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 agreed to pay $1.7 million of our pre-petition receivables under this program in advance of PG&E’s emergence from bankruptcy. 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. Collecting the pre-petition accounts receivable would substantially improve our cash position and net debt leverage ratio.
  • In an effort to simplify our financial statements and presentation for investors beginning in 2020, the Omnibus Agreement with CEH will be amended to replace the administrative fee with a direct expense pass-through. Management believes this change will likely result in a cost savings to CELP.

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

Non-GAAP Measures:

CELP 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. CELP 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. CELP 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 alternatives 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. CELP 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. CELP uses Adjusted EBITDA, Adjusted EBITDA attributable to limited partners and Distributable Cash Flow as supplemental financial measures 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 Flows Provided by 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 environmental services, including pipeline inspection, integrity, and hydrostatic testing services to various energy and utility 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 September 30, 2019 and December 31, 2018

(in thousands)

September 30,

December 31,

 

2019

 

 

2018

 

 

ASSETS

Current assets:

Cash and cash equivalents

$

12,735

 

$

15,380

 

Trade accounts receivable, net

 

69,672

 

 

48,789

 

Prepaid expenses and other

 

958

 

 

1,396

 

Total current assets

 

83,365

 

 

65,565

 

Property and equipment:

Property and equipment, at cost

 

25,394

 

 

23,988

 

Less: Accumulated depreciation

 

13,134

 

 

11,266

 

Total property and equipment, net

 

12,260

 

 

12,722

 

Intangible assets, net

 

20,737

 

 

22,759

 

Goodwill

 

50,334

 

 

50,294

 

Finance lease right-of-use assets, net

 

596

 

 

-

 

Operating lease right-of-use assets

 

3,068

 

 

-

 

Debt issuance costs, net

 

869

 

 

1,260

 

Other assets

 

513

 

 

253

 

Total assets

$

171,742

 

$

152,853

 

 

LIABILITIES AND OWNERS' EQUITY

Current liabilities:

Accounts payable

$

7,191

 

$

4,848

 

Accounts payable - affiliates

 

4,429

 

 

4,060

 

Accrued payroll and other

 

17,996

 

 

12,276

 

Income taxes payable

 

902

 

 

737

 

Finance lease obligations

 

167

 

 

90

 

Operating lease obligations

 

453

 

 

-

 

Total current liabilities

 

31,138

 

 

22,011

 

Long-term debt

 

80,929

 

 

76,129

 

Finance lease obligations

 

366

 

 

248

 

Operating lease obligations

 

2,551

 

 

-

 

Other noncurrent liabilities

 

205

 

 

178

 

Total liabilities

 

115,189

 

 

98,566

 

 

Owners' equity:

Partners’ capital:

Common units (12,065 and 11,947 units outstanding at

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

 

36,352

 

 

34,677

 

Preferred units (5,769 units outstanding at September 30, 2019

and December 31, 2018)

 

44,291

 

 

44,291

 

General partner

 

(25,876

)

 

(25,876

)

Accumulated other comprehensive loss

 

(2,515

)

 

(2,414

)

Total partners' capital

 

52,252

 

 

50,678

 

Noncontrolling interests

 

4,301

 

 

3,609

 

Total owners' equity

 

56,553

 

 

54,287

 

Total liabilities and owners' equity

$

171,742

 

$

152,853

 

 

CYPRESS ENERGY PARTNERS, L.P.

Unaudited Condensed Consolidated Statements of Operations

For the Three and Nine Months Ended September 30, 2019 and 2018

(in thousands, except per unit data)

 

Three Months Ended

 

Nine Months Ended

September 30

 

September 30

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2018

 

 

Revenue

$

108,934

 

$

84,778

 

$

310,401

 

$

226,072

 

Costs of services

 

93,533

 

 

71,870

 

 

270,170

 

 

194,092

 

Gross margin

 

15,401

 

 

12,908

 

 

40,231

 

 

31,980

 

 

Operating costs and expense:

General and administrative

 

6,557

 

 

6,064

 

 

18,946

 

 

17,341

 

Depreciation, amortization and accretion

 

1,116

 

 

1,124

 

 

3,329

 

 

3,368

 

Gain on asset disposals, net

 

-

 

 

(822

)

 

(23

)

 

(4,137

)

Operating income

 

7,728

 

 

6,542

 

 

17,979

 

 

15,408

 

 

Other (expense) income:

Interest expense, net

 

(1,376

)

 

(1,283

)

 

(4,102

)

 

(4,907

)

Debt issuance cost write-off

 

-

 

 

-

 

 

-

 

 

(114

)

Foreign currency gains (losses)

 

(47

)

 

97

 

 

138

 

 

(354

)

Other, net

 

82

 

 

95

 

 

220

 

 

302

 

Net income before income tax expense

 

6,387

 

 

5,451

 

 

14,235

 

 

10,335

 

Income tax expense

 

907

 

 

497

 

 

1,731

 

 

865

 

Net income

 

5,480

 

 

4,954

 

 

12,504

 

 

9,470

 

 

Net income attributable to noncontrolling interests

 

634

 

 

289

 

 

692

 

 

673

 

Net income attributable to partners / controlling interests

 

4,846

 

 

4,665

 

 

11,812

 

 

8,797

 

 

Net income attributable to preferred unitholder

 

1,033

 

 

1,045

 

 

3,099

 

 

1,412

 

Net income attributable to common unitholders

$

3,813

 

$

3,620

 

$

8,713

 

$

7,385

 

 

Net income per common limited partner unit:

Basic

$

0.32

 

$

0.30

 

$

0.72

 

$

0.62

 

Diluted

$

0.26

 

$

0.26

 

$

0.65

 

$

0.59

 

 

Weighted average common units outstanding:

Basic

 

12,065

 

 

11,940

 

 

12,030

 

 

11,924

 

Diluted

 

18,350

 

 

18,141

 

 

18,207

 

 

14,970

 

 

Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow

 

Three Months ended September 30

 

Nine Months ended September 30

 

2019

 

 

2018

 

 

2019

 

 

2018

(in thousands)

 

 

 

Net income

$

5,480

$

4,954

$

12,504

$

9,470

Add:

Interest expense

 

1,376

 

1,283

 

4,102

 

4,907

Debt issuance cost write-off

 

-

 

-

 

-

 

114

Depreciation, amortization and accretion

 

1,391

 

1,393

 

4,155

 

4,186

Income tax expense

 

907

 

497

 

1,731

 

865

Equity-based compensation

 

303

 

361

 

746

 

908

Foreign currency losses

 

47

 

-

 

-

 

354

Less:

Foreign currency gains

 

-

 

97

 

138

 

-

Gain on asset disposals, net

 

-

 

769

 

-

 

4,039

Adjusted EBITDA

$

9,504

$

7,622

$

23,100

$

16,765

 

Adjusted EBITDA attributable to noncontrolling interests

 

783

 

412

 

1,114

 

1,076

Adjusted EBITDA attributable to limited partners /

controlling interests

$

8,721

$

7,210

$

21,986

$

15,689

 

Less:

Preferred unit distributions

 

1,033

 

-

 

3,099

 

-

Cash interest paid, cash taxes paid, maintenance

capital expenditures

 

1,922

 

1,469

 

5,604

 

5,897

Distributable cash flow

$

5,766

$

5,741

$

13,283

$

9,792

 
 
 

Reconciliation of Net Income Attributable to Limited Partners to Adjusted

EBITDA Attributable to Limited Partners and Distributable Cash Flow

Three Months ended September 30

 

Nine Months ended September 30

 

2019

 

 

2018

 

 

2019

 

 

2018

(in thousands)

 

Net income attributable to limited partners

$

4,846

$

4,665

$

11,812

$

8,797

Add:

Interest expense attributable to limited partners

 

1,376

 

1,283

 

4,102

 

4,907

Debt issuance cost write-off attributable to limited partners

 

-

 

-

 

-

 

114

Depreciation, amortization and accretion attributable

to limited partners

 

1,255

 

1,277

 

3,759

 

3,804

Income tax expense attributable to limited partners

 

894

 

490

 

1,705

 

844

Equity based compensation attributable to limited partners

 

303

 

361

 

746

 

908

Foreign currency losses attributable to limited partners

 

47

 

-

 

-

 

354

Less:

Foreign currency gains attributable to limited partners

 

-

 

97

 

138

 

-

Gain on asset disposals attributable to limited partners, net

 

-

 

769

 

-

 

4,039

Adjusted EBITDA attributable to limited partners

 

8,721

 

7,210

 

21,986

 

15,689

 

Less:

Preferred unit distributions

 

1,033

 

-

 

3,099

 

-

Cash interest paid, cash taxed paid and maintenance

capital expenditures attributable to limited partners

 

1,922

 

1,469

 

5,604

 

5,897

Distributable cash flow

$

5,766

$

5,741

$

13,283

$

9,792

 

Reconciliation of Net Cash Flows Provided by Operating

Activities to Adjusted EBITDA and Distributable Cash Flow

Nine Months ended September 30

 

2019

 

 

 

2018

 

(in thousands)

 

Cash flows provided by operating activities

$

5,055

 

$

6,955

 

Changes in trade accounts receivable, net

 

20,879

 

 

9,395

 

Changes in prepaid expenses and other

 

(121

)

 

(891

)

Changes in accounts payable and accrued liabilities

 

(8,023

)

 

(4,129

)

Change in income taxes payable

 

(166

)

 

(62

)

Interest expense (excluding non-cash interest)

 

3,711

 

 

4,478

 

Income tax expense (excluding deferred tax benefit)

 

1,731

 

 

865

 

Other

 

34

 

 

154

 

Adjusted EBITDA

$

23,100

 

$

16,765

 

 

Adjusted EBITDA attributable to noncontrolling interests

 

1,114

 

 

1,076

 

Adjusted EBITDA attributable to limited partners / controlling interests

$

21,986

 

$

15,689

 

 

Less:

 

Preferred unit distributions

 

3,099

 

 

-

 

Cash interest paid, cash taxes paid, maintenance capital expenditures

 

5,604

 

 

5,897

 

Distributable cash flow

$

13,283

 

$

9,792

 

 

Operating Data

Three Months

 

Nine Months

Ended September 30

 

Ended September 30

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2018

 

 

Total barrels of saltwater disposed (in thousands)

 

3,989

 

 

4,276

 

 

10,322

 

 

10,928

 

Average revenue per barrel

$

0.76

 

$

0.78

 

$

0.77

 

$

0.81

 

Environmental Services gross margins

 

74.1

%

 

71.1

%

 

71.5

%

 

66.4

%

Average number of inspectors

 

1,540

 

 

1,263

 

 

1,548

 

 

1,160

 

Average number of U.S. inspectors

 

1,539

 

 

1,259

 

 

1,547

 

 

1,154

 

Average revenue per inspector per week

$

4,925

 

$

4,675

 

$

4,802

 

$

4,552

 

Pipeline Inspection Services gross margins

 

11.1

%

 

11.9

%

 

10.7

%

 

11.0

%

Average number of field personnel

 

29

 

 

23

 

 

28

 

 

22

 

Average revenue per field personnel per week

$

16,264

 

$

12,839

 

$

11,496

 

$

13,178

 

Pipeline & Process Services gross margins

 

33.1

%

 

33.2

%

 

29.2

%

 

30.7

%

Maintenance capital expenditures (in thousands)

$

234

 

$

258

 

$

521

 

$

560

 

Expansion capital expenditures (in thousands)

$

296

 

$

1,296

 

$

1,158

 

$

4,928

 

Common unit distributions (in thousands)

$

2,534

 

$

2,509

 

$

7,599

 

$

7,521

 

Preferred unit distributions (in thousands)

$

1,033

 

$

-

 

$

3,099

 

$

-

 

Common unit distribution coverage ratio

2.28x

 

2.29x

 

1.75x

 

1.30x

 

Net debt leverage ratio

2.34x

 

2.83x

 

2.34x

 

2.83x

 

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191112006086/en/

CONTACT: Cypress Energy Partners, L.P.

Jeff Herbers, Chief Financial Officer

918-947-5730

jeff.herbers@cypressenergy.com

KEYWORD: OKLAHOMA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: OIL/GAS ENERGY

SOURCE: Cypress Energy Partners, L.P.

Copyright Business Wire 2019.

PUB: 11/12/2019 04:25 PM/DISC: 11/12/2019 04:25 PM

http://www.businesswire.com/news/home/20191112006086/en