Houston, Aug. 02, 2018 (GLOBE NEWSWIRE) -- Shell Midstream Partners, L.P. (NYSE: SHLX), a growth-oriented midstream master limited partnership formed by Royal Dutch Shell plc (“RDS”), reported net income attributable to the partnership of $110.7 million for the second quarter of 2018, which equated to $0.35 per common limited partner unit. Shell Midstream Partners also generated adjusted earnings before interest, income taxes, depreciation and amortization attributable to the partnership of $155.2 million.
“I'm very pleased with the operational and financial results for the quarter. We saw strong performance from our base business, as evidenced by record high volume on our Zydeco Pipeline,” said Kevin Nichols, CEO Shell Midstream Partners, GP LLC. “In addition, we are seeing strong results from our most recent acquisition, an ownership interest in the Amberjack Pipeline. This is a pipeline system with a strong growth outlook - over 18% growth in dividends in 2018 alone and a clear line of sight to additional growth in 2019.”
Total cash available for distribution was $136.6 million, approximately $57 million higher than the prior quarter. The improved financial results of the quarter were largely driven by the Zydeco pipeline returning to normal operations and the acquisition of an ownership interest in the Amberjack Pipeline, partially offset by the one-time increased Colonial dividend paid in the first quarter and planned producer maintenance offshore.
The Board of Directors of the general partner previously declared a cash distribution of $0.3650 per limited partnership unit for the second quarter of 2018. This distribution represented an increase of 4.9% over the first quarter 2018 distribution and 20% increase over the second quarter 2017 distribution. This represents the thirteenth consecutive quarter of distribution growth, which supports the partnership's intent to increase distributions by 20% in 2017 and 2018.
FINANCIAL HIGHLIGHTS
Net income attributable to the partnership was $110.7 million, compared to $64.0 million for the prior quarter.
Net cash provided by operating activities was $104.2 million, compared to $109.0 million for the prior quarter.
Cash available for distribution was $136.6 million, compared to $80.1 million for the prior quarter, largely driven by Zydeco returning to normal operations and the acquisition of an interest in the Amberjack Pipeline, partially offset by the one-time increased Colonial dividend paid in the first quarter and planned producer maintenance offshore.
Total cash distribution declared was $113.4 million resulting in a healthy coverage ratio of 1.2x.
Adjusted EBITDA attributable to the partnership was $155.2 million, compared to $95.8 million for the prior quarter.
As of June 30, 2018, the Partnership had $174.9 million of consolidated cash and cash equivalents on hand.
As of June 30, 2018, the Partnership had total debt of $2.1 billion, equating to 3.4x Debt to Adjusted EBITDA. Current debt levels are well within targeted range and provide full flexibility to continue to grow in line with guidance.
On July 31, 2018, we entered into a seven-year fixed rate credit facility with Shell Treasury Center (West) Inc. with a borrowing capacity of $600 million. The new facility was fully drawn on August 1, 2018 to partially repay borrowings under an existing revolving credit facility.