Boston, MA 05\/19\/2014 (wallstreetpr) \u2013 Rose Rock Midstream LP (NYSE:RRMS)<\/b> posted solid growth in its first quarter result as a result of acquisitions made during 2013.<\/p>\n
Operating highlights<\/b><\/p>\n
In 1Q2014, total revenues increased by 70% to $291 million due to a significant increase in revenue from transportation (+222%) and marketing activities (+69%). Fixed fee services primarily drove the transportation revenue that increased to $18.7 million during 1Q2014 (1Q2013: $5.8 million) as a result of $1.4 million of pipeline transportation fees, $13.5 million of fees from trucking and $3.8 million of fixed margin.<\/p>\n
Adjusted gross margin improved by 66% to $37.0 million during the quarter (1Q2013: $22.3 million), due to higher pipeline and trucks transportation volumes, more storage capacity and higher marketing volumes. The increased gross margin and reduction in operating and G&A costs raised the adjusted EBITDA by 70% to $27.8 million (1Q2013: $16.4 million) and net income of $16.2 million (1Q2013: $12.0 million).<\/p>\n
Rose Rock\u2019s cash distribution<\/b><\/p>\n
Higher adjusted EBITDA and lower maintenance costs ($907K) improved Rose Rock\u2019s distribution cash flow to $24.9 million in 1Q2014 compared to $12.7 million during 1Q2013. Therefore, the Partnership increased the quarterly distribution to $0.495 per unit (1Q2013: $0.465) with distribution coverage ratio of 1.79x (1Q2013: 1.43x).<\/p>\n
Strong liquidity position<\/b><\/p>\n
Rose Rock Midstream LP (NYSE:RRMS) is financially sound with strong liquidity of $301 million including available revolver of $298 million and cash and cash equivalent of $3 million as of March 31, 2014. During the period, the partnership has a total capitalization of $605 million with total equity of $360 million and total debt of $245 million. So, the leverage ratio (net debt\/adjusted EBITDA LTM) was 3.0x.<\/p>\n
Going forward<\/b><\/p>\n
Considering the positive trends, Rose Rock Midstream LP (NYSE:RRMS) expects growth in performance and anticipates adjusted EBITDA of $92-$97 million in FY2014. The partnership continues to focus on organic growth as well as growth oriented acquisitions, therefore, targets capital investments of $75 million in 2014.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/19\/2014 (wallstreetpr) \u2013 Rose Rock Midstream LP (NYSE:RRMS) posted solid growth in its first quarter result as a result of acquisitions made during […]<\/p>\n","protected":false},"author":2,"featured_media":22615,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[5822,5821],"stock_ticker":[],"class_list":["post-22611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nyserrms","tag-rose-rock-midstream-lp-nyserrms","entry"],"acf":[],"yoast_head":"\n