Houston, Feb. 19, 2021 (GLOBE NEWSWIRE) -- Shell Midstream Partners, L.P. (NYSE: SHLX) reported net income attributable to the Partnership of $129 million for the fourth quarter of 2020, which equated to $0.29 per diluted common limited partner unit. Shell Midstream Partners also generated adjusted earnings before interest, income taxes, depreciation and amortization attributable to the Partnership of $188 million.

Total cash available for distribution was $162 million, approximately $1 million lower than the prior quarter. The Partnership was impacted by late season storms in the Gulf of Mexico, planned turnaround activities and the continuing effects of the COVID-19 pandemic. However, these headwinds were largely offset by increased throughput on the Zydeco system, as well as on certain offshore systems, when compared to the prior quarter.

“We had another solid performance this quarter—ending what was a very challenging year for our industry and the world in general,” said Kevin Nichols, CEO, Shell Midstream Partners GP LLC. “Throughout the year, we were able to rely on our strong operational capabilities and resilient portfolio to deliver value to the partnership while keeping the safety of our employees and assets a priority.”

The Board of Directors of the general partner previously declared a cash distribution of $0.4600 per limited partner common unit for the fourth quarter of 2020. This distribution was consistent with the prior quarter.

FINANCIAL HIGHLIGHTS

• Net income attributable to the Partnership was $129 million, compared to $135 million for the prior quarter.
• Net cash provided by operating activities was $147 million, compared to $149 million for the prior quarter.
• Cash available for distribution was $162 million, compared to $163 million for the prior quarter.
• Total cash distribution declared was $161 million, resulting in a coverage ratio of 1.0x.
• Adjusted EBITDA attributable to the Partnership was $188 million, compared to $191 million for the prior quarter.
• As of December 31, 2020, the Partnership had $320 million of consolidated cash and cash equivalents on hand.
• As of December 31, 2020, the Partnership had total debt of $2.7 billion, equating to 3.6x Debt to annualized Q4 2020 Adjusted EBITDA. Current debt levels are well within our targeted range and provide flexibility to the Partnership.

Adjusted EBITDA and Cash available for distribution are non-GAAP supplemental financial measures. See the reconciliation to their most comparable GAAP measures later in this press release.

ASSET HIGHLIGHTS

Significant Onshore Pipeline Transportation:

• Zydeco - Mainline volumes were 583 kbpd in the current quarter, compared to 524 kbpd in the prior quarter, primarily due to increased offshore volumes as production came back online following the impacts of hurricanes and planned producer turnarounds.

Significant Offshore Pipeline Transportation:

• During the quarter, the Partnership experienced a reduction in volumes across the Gulf of Mexico as producers shut-in offshore production several times due to storms and certain planned turnarounds were delayed until the fourth quarter.
  • Mars - Volumes were 441 kbpd compared to 479 kbpd in the prior quarter.
  • Amberjack - Volumes were 301 kbpd compared to 295 kbpd in the prior quarter.
  • Eastern Corridor - Volumes were 347 kbpd compared to 261 kbpd in the prior quarter.
  • Auger - Volumes were 110 kbpd compared to 55 kbpd in the prior quarter.
• Our assets sustained no material damage, and volumes returned to pre-storm levels once the producers restarted production.

2021 OUTLOOK

• Based on current producer schedules, we expect an impact of approximately $10 million to net income and cash available for distribution in 2021 related to certain planned producer turnarounds.
• Acknowledging the continuing impacts of the global COVID-19 pandemic and lack of clarity on crude and finished products supply and demand in the near-term, the Partnership’s Board of Directors will monitor the business environment and make decisions regarding future distributions on a quarter-by-quarter basis.
• The Partnership has approximately $1.2 billion in available liquidity, which is a combination of cash and cash equivalents and availability under credit facilities.

ABOUT SHELL MIDSTREAM PARTNERS, L.P.

Shell Midstream Partners, L.P., headquartered in Houston, Texas, owns, operates, develops and acquires pipelines and other midstream and logistics assets. The Partnership’s assets include interests in entities that own (a) crude oil and refined products pipelines and terminals that serve as key infrastructure to transport onshore and offshore crude oil production to Gulf Coast and Midwest refining markets and deliver refined products from those markets to major demand centers and (b) storage tanks and financing receivables that are secured by pipelines, storage tanks, docks, truck and rail racks and other infrastructure used to stage and transport intermediate and finished products. The Partnership’s assets also include interests in entities that own natural gas and refinery gas pipelines that transport offshore natural gas to market hubs and deliver refinery gas from refineries and plants to chemical sites along the Gulf Coast.

For more information on Shell Midstream Partners and the assets owned by the Partnership, please visit www.shellmidstreampartners.com.