Attached files

file filename
8-K - FORM 8-K - Southcross Energy Partners, L.P.d885696d8k.htm

Exhibit 99.1

 

LOGO

 

NEWS RELEASE
Southcross Energy 1700 Pacific Avenue, Suite 2900, Dallas, Texas 75201, 214-979-3720

Southcross Energy Partners, L.P. Reports Fourth Quarter and Full-Year 2014

Financial and Operating Results

DALLAS, Texas, March 6, 2015 – Southcross Energy Partners, L.P. (NYSE: SXE) (“Southcross” or the “Partnership”) today announced fourth quarter and full-year 2014 financial and operating results.

Fourth Quarter 2014 Highlights

 

    Adjusted EBITDA of $20.6 million, an 82% increase from the third quarter of 2014

 

    Processed natural gas volumes averaged 515,046 million MMBtu/d, an increase of 35% from the third quarter of 2014

 

    Natural gas liquids (“NGL”) fractionated averaged 22,394 barrels per day, an increase of 23% from the third quarter of 2014

CEO Commentary

“2014 was a landmark year of growth and positive momentum for Southcross,” said John Bonn, Chief Executive Officer of Southcross’ general partner. “During the course of 2014, we completed a significant acquisition of gathering and processing assets in the active Eagle Ford Shale area and successfully completed several organic projects that resulted in significant growth of rich gas volumes on our system. Southcross today has increased stability, scale and growth potential across the Eagle Ford.”

“We believe Southcross is well-positioned to manage the current commodity price environment,” added Mr. Bonn. “Growing portions of our revenue streams are fixed-fee in nature. We have meaningful growth opportunities which include filling our existing processing capacity, organic growth projects and the opportunity to execute drop-down transactions that we anticipate will support distribution growth for our unit holders.”

Fourth Quarter Results

Southcross’ Adjusted EBITDA (as defined below) was $20.6 million for the three month period ended December 31, 2014, compared to $14.0 million for the same period in the prior year, and $11.3 million for the three month period ended September 30, 2014.

Gross operating margin (as defined below) totaled $37.2 million for the three month period ended December 31, 2014, compared to $28.2 million for the same period in the prior year. Net income/(loss) was ($2.3) million for the three month period ended December 31, 2014, compared to $0.7 million for the same period in the prior year. Results in the fourth quarter 2014 benefited from expense reductions, including an adjustment to incentive compensation accruals in response to performance results and the lower commodity price environment.

Processed gas volumes averaged 515,046 MMBtu/d during the three month period ended December 31, 2014, an increase of 91% compared to 268,957 MMBtu/d during the same period in the prior year. Fractionated NGLs during the three month period ended December 31, 2014 averaged 22,394 barrels per day, an increase of 36% compared to 16,407 barrels per day for the same period in the prior year.

 

1


Full-Year 2014 Results

Southcross’ Adjusted EBITDA was $54.5 million for the year ended December 31, 2014, compared to $34.5 million for the year ended December 31, 2013.

Gross operating margin totaled $121.6 million for the year ended December 31, 2014, compared to $93.5 million for the year ended December 31, 2013. Net loss was ($31.3) million for the year ended December 31, 2014, compared to ($16.0) million for the year ended December 31, 2013. Results for full-year 2014 were impacted by transaction and other expenses related to the August 2014 TexStar transactions.

Capital Expenditures

Growth capital expenditures for the three month period ended December 31, 2014 totaled $33.1 million, compared to $6.4 million for the same period in the prior year. For the year ended December 31, 2014, growth capital expenditures were $115.0 million, which included spending for the construction of the Webb Pipeline, compared to $90.5 million for the year ended December 31, 2013.

Capital and Liquidity

As of December 31, 2014, Southcross had total outstanding debt of $475.6 million including $30.0 million under its revolving credit facility. Based on the terms of its credit facilities, Southcross’ total leverage ratio (as generally defined as debt divided by credit agreement EBITDA) was 5.3 to 1 as of December 31, 2014 compared to its credit facility covenant of 5.75 to 1.

Cash Distributions and Distributable Cash Flow

On February 13, 2015, Southcross paid to all unit holders of record on February 9, 2015, a cash distribution of $0.40 per common unit for the three month period ended December 31, 2014 and also paid to all Class B convertible unit holders of record on February 9, 2015 a distribution of $0.3257 per unit, paid in-kind in the form of additional Class B convertible units. Cash distributions on February 13, 2015 totaled $10.0 million.

As previously announced, to support the Partnership’s acquisition of gathering and processing assets completed in August 2014, Southcross Holdings LP, the owner of the Partnership’s general partner and all of the Partnership’s subordinated units, elected to forgo distributions on any subordinated units that would cause the Partnership’s cash distributions to exceed its distributable cash flow for any quarterly period. This election will continue until the Partnership has distributable cash flow in excess of total cash distributions on the Partnership’s common and subordinated units. Southcross Holdings LP also elected to defer any distribution payable on the subordinated units for the fourth quarter of 2014 until the Partnership filed its Form 10-K for its fiscal year ended December 31, 2014. Southcross intends to make a cash distribution with respect to its subordinated units for the fourth quarter of 2014 of approximately $3.4 million in conjunction with the filing of its Form 10-K such that the total of the Partnership’s cash distributions is equal to the Partnership’s distributable cash flow for such period.

Distributable cash flow (as defined below) for the three month period ended December 31, 2014 was $13.4 million, compared to $9.3 million for the same period in the prior year. Distributable cash flow for the three month period ended December 31, 2014 corresponds to distribution coverage of 1.0 times, including the distributions to be paid on the subordinated units.

Updated Financial Guidance

Southcross expects that its Adjusted EBITDA for the first quarter of 2015 will be approximately $17.5 million to $19.5 million, which reflects an approximate $2.0 million impact related to the Gregory fire that temporarily reduced processed gas volumes and increased operating expenses during January and February 2015. Southcross anticipates that its growth capital expenditures for the full year 2015 will be in the range of $25 million to $30 million.

 

2


The guidance above sets forth management’s best estimate based on current and anticipated market conditions and other factors. While we believe that these estimates and assumptions are reasonable, they are inherently uncertain and are subject to, among other things, significant business, economic, regulatory, environmental and competitive risks and uncertainties that could cause actual results to differ materially from those that we anticipate, as set forth under “Forward-Looking Statements.”

Conference Call Information

Southcross will hold a conference call on Friday, March 6, 2015, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss its fourth quarter and full-year 2014 financial and operating results. The call can be accessed live over the telephone by dialing (877) 705-6003 or, for international callers, (201) 493-6725. The replay of the call will be available shortly after the call and can be accessed by dialing (877) 870-5176 or, for international callers, (858) 384-5517. The passcode for the replay is 13600597. The replay of the conference call will be available for approximately two weeks following the call.

Interested parties may also listen to a simultaneous webcast of the call on Southcross’ website at www.southcrossenergy.com under the “Investors” section. A replay of the webcast will also be available for approximately two weeks following the call.

About Southcross Energy Partners, L.P.

Southcross Energy Partners, L.P. is a master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama and include four gas processing plants, two fractionation plants and approximately 3,000 miles of pipeline. The South Texas assets are located in or near the Eagle Ford shale region. Southcross is headquartered in Dallas, Texas. Visit www.southcrossenergy.com for more information.

Forward-Looking Statements

This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words “expect,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “will be,” “will continue,” “will likely result,” and similar expressions, or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations, plans, strategies, objectives and growth of Southcross, including its ability to manage the current commodity price environment; filling its processing capacity; guidance regarding Adjusted EBITDA; acquisition activity, including Southcross’ ability to complete any potential future drop-down transaction; projected capital expenditures and sources of funds for capital expenditures; and liquidity and financing requirements, including funding sources for a drop-down transaction. Although Southcross believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, Southcross can give no assurance they will prove to be correct. Forward-looking statements contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management’s control) that may cause Southcross’ actual results in future periods to differ materially from anticipated or projected results. An extensive list of specific material risks and uncertainties affecting Southcross is contained in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2014 and in other documents and reports filed from time to time with the SEC. Any forward-looking statements in this press release are made as of the date hereof and Southcross undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.

Use of Non-GAAP Financial Measures

We report our financial results in accordance with accounting principles generally accepted in the United States, or GAAP. We also present the non-GAAP financial measures of Adjusted EBITDA, gross operating margin and distributable cash flow.

 

3


We define Adjusted EBITDA as net income/loss, plus interest expense, income tax expense, depreciation and amortization expense, equity in losses of joint venture investments, certain non-cash charges (such as non-cash unit-based compensation, impairments, loss on extinguishment of debt and unrealized losses on derivative contracts), major litigation costs net of recoveries, transaction-related costs, revenue deferral adjustment, loss on sale of assets and selected charges that are unusual or non-recurring; less interest income, income tax benefit, unrealized gains on derivative contracts, equity in earnings of joint venture investments and selected gains that are unusual or non-recurring. Adjusted EBITDA should not be considered an alternative to net income, operating cash flow or any other measure of financial performance presented in accordance with GAAP.

Adjusted EBITDA is used as a supplemental measure by our management and by external users of our financial statements such as investors, commercial banks, research analysts and others, to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis; the ability of our assets to generate cash sufficient to support our indebtedness and make future cash distributions; operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing or capital structure; and the attractiveness of capital projects and acquisitions and the overall rates of return on investment opportunities.

We define gross operating margin as the sum of revenues less the cost of natural gas and NGLs sold. For our fixed-fee contracts, we record the fee as revenue and there is no offsetting cost of natural gas and NGLs sold. For our fixed-spread and commodity-sensitive arrangements, we record as revenue all of our proceeds from the sale of the natural gas and NGLs and record as an expense the associated cost of natural gas and NGLs sold.

We define distributable cash flow as Adjusted EBITDA, plus interest income and income tax benefit, less cash paid for interest (net of capitalized costs), income tax expense and maintenance capital expenditures. We use distributable cash flow to analyze our performance and liquidity. Distributable cash flow does not reflect changes in working capital balances. Distributable cash flow is used to assess the ability of our assets to generate cash sufficient to support our indebtedness and make future cash distributions to our unit holders; and the attractiveness of capital projects and acquisitions and the overall rates of return on alternative investment opportunities.

We believe that the presentation of these non-GAAP financial measures provides useful information to investors in assessing our financial condition, results of operations and cash flows from operations. Reconciliations of Adjusted EBITDA, gross operating margin and distributable cash flow to their most directly comparable GAAP measure are included in this press release. Our non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measure. Each of these non-GAAP financial measures has important limitations as an analytical tool because each excludes some but not all items that affect the most directly comparable GAAP financial measure. You should not consider any of Adjusted EBITDA, gross operating margin or distributable cash flow in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA, gross operating margin and distributable cash flow may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

###

Contact:

Southcross Energy Partners, L.P.

David Lawrence, 214-979-3720

Investor Relations

investorrelations@southcrossenergy.com

 

4


SOUTHCROSS ENERGY PARTNERS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per unit data)

(Unaudited)

 

     Three Months Ended     Year Ended  
     December 31,     December 31,  
     2014     2013     2014     2013  

Revenues:

        

Revenues

   $ 215,603      $ 175,139      $ 829,460      $ 634,722   

Revenues - affiliates

     6,977        —          13,267        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

  222,580      175,139      842,727      634,722   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

Cost of natural gas and liquids sold

  185,342      146,964      721,132      541,176   

Operations and maintenance

  12,408      10,186      51,902      41,254   

Depreciation and amortization

  13,071      8,590      42,206      33,548   

General and administrative

  4,662      4,914      32,385      21,764   

Impairment of assets

  —        —        1,556      —     

Loss (gain) on sale of assets

  73      (25   365      (25
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

  215,556      170,629      849,546      637,717   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

  7,024      4,510      (6,819   (2,995

Other (expense) income:

Equity in losses of joint venture investments

  (3,188   —        (6,496   —     

Interest expense

  (6,222   (3,855   (15,562   (12,590

Loss on extinguishment of debt

  —        —        (2,316   —     

Other income (expense)

  9      —        (77   —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense

  (9,401   (3,855   (24,451   (12,590
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income before income tax expense

  (2,377   655      (31,270   (15,585

Income tax benefit (expense)

  81      19      (52   (385
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

$ (2,296 $ 674    $ (31,322 $ (15,970
  

 

 

   

 

 

   

 

 

   

 

 

 

Series A Preferred fair value adjustment

  —        (414   (4,596   (1,670

Series A Preferred unit in-kind distribution

  —        —        (534   —     

General partner unit in-kind distribution

  (84   —        (207   —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income attributable to partners

$ (2,380 $ 260    $ (36,659 $ (17,640
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per unit:

Net (loss) income allocated to limited partner common units

  (1,091   104      (20,175   (8,683

Weighted average number of limited partner common units outstanding

  23,808,317      12,240,719      21,641,635      12,224,997   

Basic and diluted (loss) income per common unit

  (0.05   0.01      (0.93   (0.71

Distributions declared per common unit

  0.40      0.40      1.60      1.60   

Net (loss) income allocated to limited partner subordinated units

  (560   141      (8,355   (8,638

Weighted average number of limited partner subordinated units outstanding

  12,213,713      12,213,713      12,213,713      12,213,713   

Basic and diluted (loss) income per subordinated unit

  (0.05   0.01      (0.68   (0.71

Distributions declared per subordinated unit

  0.28      0.40      1.08      1.60   


SOUTHCROSS ENERGY PARTNERS, L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

     December 31, 2014      December 31, 2013  

ASSETS

     

Current assets:

     

Cash and cash equivalents

   $ 1,649       $ 3,349   

Trade accounts receivable

     71,159         57,669   

Accounts receivable - affiliates

     11,325         —     

Prepaid expenses

     3,073         3,061   

Other current assets

     1,813         5,105   
  

 

 

    

 

 

 

Total current assets

  89,019      69,184   

Property, plant and equipment, net

  968,810      575,795   

Intangible assets, net

  1,511      1,568   

Investments in joint ventures

  147,098      —     

Other assets

  17,189      5,768   
  

 

 

    

 

 

 

Total assets

$ 1,223,627    $ 652,315   
  

 

 

    

 

 

 

LIABILITIES, PREFERRED UNITS AND PARTNERS’ CAPITAL

Current liabilities:

Accounts payable and accrued liabilities

$ 103,188    $ 62,451   

Accounts payable - affiliates

  12,856      —     

Current portion of long-term debt

  4,500      —     

Other current liabilities

  11,061      5,344   
  

 

 

    

 

 

 

Total current liabilities

  131,605      67,795   

Long-term debt

  471,129      267,300   

Other non-current liabilities

  1,109      1,692   
  

 

 

    

 

 

 

Total liabilities

  603,843      336,787   
  

 

 

    

 

 

 

Commitments and contingencies

Series A convertible preferred units (1,769,915 units issued and outstanding as of December 31, 2013)

  —        40,504   

Partners’ capital:

Common units (23,800,943 and 12,253,985 units outstanding as of December 31, 2014 and 2013, respectively)

  259,735      169,141   

Class B Convertible units (14,889,078 units issued and outstanding as of December 31, 2014)

  298,833      —     

Subordinated units (12,213,713 units outstanding as of December 31, 2014 and 2013)

  48,831      99,726   

General Partner interest

  12,385      6,367   

Accumulated other comprehensive loss

  —        (210
  

 

 

    

 

 

 

Total partners’ capital

  619,784      275,024   
  

 

 

    

 

 

 

Total liabilities, preferred units and partners’ capital

$ 1,223,627    $ 652,315   
  

 

 

    

 

 

 


SOUTHCROSS ENERGY PARTNERS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Year Ended December 31,  
     2014     2013  

Cash flows from operating activities:

    

Net loss

   $ (31,322   $ (15,970

Adjustments to reconcile net loss to net cash provided by operating activities:

    

Depreciation and amortization

     42,206        33,548   

Unit-based compensation

     10,074        2,186   

Loss on extinguishment of debt

     2,316        —     

Amortization of deferred financing costs

     2,005        1,287   

Loss (gain) on sale of assets, net

     365        (25

Unrealized loss (gain) on financial instruments

     168        (120

Equity in losses of joint venture investments

     6,496        —     

Impairment of assets

     1,556        —     

Other, net

     65        130   

Changes in operating assets and liabilities:

    

Trade accounts receivable, including affiliates

     (22,695     (6,675

Prepaid expenses and other current assets

     (5     (1,197

Other non-current assets

     (29     215   

Accounts payable and accrued liabilities

     34,480        1,411   

Other liabilities, including affiliates

     2,655        1,183   
  

 

 

   

 

 

 

Net cash provided by operating activities

  48,335      15,973   
  

 

 

   

 

 

 

Cash flows from investing activities:

Capital expenditures

  (120,759   (93,863

Expenditures for assets subject to property damage claims, net of insurance proceeds and deductibles

  2,706      (3,383

Investment contribution to joint venture investments

  (148   —     

TexStar Rich Gas System acquisition from affiliate

  (79,955   —     

Other acquisitions

  (44,038   —     

Proceeds from sale of assets

  1,624      137   
  

 

 

   

 

 

 

Net cash used in investing activities

  (240,570   (97,109
  

 

 

   

 

 

 

Cash flows from financing activities:

Proceeds from issuance of common units, net

  144,671      —     

Borrowings under our credit facility

  244,500      129,300   

Borrowings under our term loan agreement

  450,000      —     

Repayments under our credit facility

  (481,800   (53,000

Repayments under our term loan agreement

  (2,250   —     

Payments on capital lease obligations

  (599   (542

Financing costs

  (17,777   (2,139

Proceeds from issuance of Series A convertible preferred units, net of issuance costs

  —        38,832   

Contributions from general partner

  9,967      800   

Payments of distributions and distribution equivalent rights

  (52,645   (35,992

Assumption and repayment of debt in TexStar Rich Gas System Transaction

  (100,000   —     

Tax withholdings on unit-based compensation vested units

  (3,532   (264
  

 

 

   

 

 

 

Net cash provided by financing activities

  190,535      76,995   
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

  (1,700   (4,141

Cash and cash equivalents — Beginning of year

  3,349      7,490   
  

 

 

   

 

 

 

Cash and cash equivalents — End of year

$ 1,649    $ 3,349   
  

 

 

   

 

 

 


SOUTHCROSS ENERGY PARTNERS, L.P.

SELECTED FINANCIAL AND OPERATIONAL DATA

(In thousands, except for operational data)

(Unaudited)

 

     Three Months Ended
December 31,
     Year Ended
December 31,
 
     2014      2013      2014      2013  

Financial data:

           

Adjusted EBITDA

   $ 20,555       $ 14,038       $ 54,503       $ 34,486   

Gross operating margin

     37,239         28,175         121,595         93,546   

Maintenance capital expenditures

     1,730         1,296         5,777         3,353   

Growth capital expenditures

     33,138         6,418         114,983         90,510   

Distributable cash flow

     13,368         9,330         35,303         19,561   

Cash distributions declared

     13,368         13,755         51,638         43,701   

Operating data:

           

Average throughput volumes of natural gas (MMBtu/d) (1)

     972,240         636,661         884,259         622,238   

Average volume of processed gas (MMBtu/d)

     515,046         268,957         353,456         240,825   

Average volume of NGLs fractionated (Bbls/d)

     22,394         16,407         17,815         12,545   

Realized prices on natural gas volumes sold ($/MMBtu)

   $ 3.98       $ 3.75       $ 4.40       $ 3.75   

Realized prices on NGL volumes sold ($/gallon)

     0.57         0.91         0.78         0.88   

 

(1) Average throughput volumes of natural gas per day include sales, transportation, fuel and shrink volumes.


SOUTHCROSS ENERGY PARTNERS, L.P.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(In thousands)

(Unaudited)

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 
     2014     2013     2014     2013  

Reconciliation of gross operating margin to net (loss) income:

        

Gross operating margin

   $ 37,239      $ 28,175      $ 121,595      $ 93,546   

Add (deduct):

        

Income tax benefit (expense)

     81        19        (52     (385

Equity in losses of joint venture investments

     (3,188     —          (6,496     —     

Interest expense

     (6,222     (3,855     (15,562     (12,590

Loss on extinguishment of debt

     —          —          (2,316     —     

Other income (expense)

     9        —          (77     —     

Loss (gain) on sale of assets

     (73     25        (365     25   

General and administrative expense

     (4,663     (4,914     (32,385     (21,764

Impairment of assets

     —          —          (1,556     —     

Depreciation and amortization expense

     (13,071     (8,590     (42,206     (33,548

Operations and maintenance expense

     (12,408     (10,186     (51,902     (41,254
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

$ (2,296 $ 674    $ (31,322 $ (15,970
  

 

 

   

 

 

   

 

 

   

 

 

 

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 
     2014     2013     2014     2013  

Reconciliation of net income (loss) to Adjusted EBITDA and distributable cash flow:

        

Net income (loss)

   $ (2,296   $ 674      $ (31,322   $ (15,970

Add (deduct):

        

Depreciation and amortization expense

     13,071        8,590        42,206        33,548   

Interest expense

     6,222        3,855        15,562        12,590   

Unrealized (gain) loss on commodity swaps

     (330     (120     8        (120

Loss on extinguishment of debt

     —          —          2,316        —     

Revenue deferral adjustment

     444        —          2,514        —     

Unit-based compensation

     711        542        2,931        2,186   

Income tax (benefit) expense

     (81     (19     52        385   

Loss (gain) on sale of assets

     73        (25     365        (25

Major litigation costs, net of recoveries

     513        517        1,904        517   

Equity in losses of joint venture investments

     3,188        —          6,496        —     

Transaction-related costs

     (963     —          9,850        —     

Impairment of assets

     —          —          1,556        —     

Other, net

     3        24        65        1,375   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

$ 20,555    $ 14,038    $ 54,503    $ 34,486   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash interest, net of capitalized costs

  (5,538   (3,431   (13,371   (11,187

Income tax benefit (expense)

  81      19      (52   (385

Maintenance capital expenditures

  (1,730   (1,296   (5,777   (3,353
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributable cash flow

$ 13,368      9,330    $ 35,303    $ 19,561   
  

 

 

   

 

 

   

 

 

   

 

 

 


SOUTHCROSS ENERGY PARTNERS, L.P.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(In thousands)

(Unaudited)

 

     Low     High  

Reconciliation of net income (loss) to Adjusted

    

EBITDA guidance:

    

Net income (loss):

   $ (2,000   $   

Add:

    

Interest expense

     6,250        6,250   

Income tax expense

     50        50   

Depreciation and amortization expense

     13,200        13,200   
  

 

 

   

 

 

 

Adjusted EBITDA

$ 17,500    $ 19,500