| Overview
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenues | $ | 34,533 | $ | 30,112 | $ | 67,807 | $ | 60,785 | |||||||
Operating, general and administrative expenses | $ | 5,539 | $ | 4,113 | $ | 12,307 | $ | 9,292 | |||||||
Depreciation and amortization expense | $ | 4,537 | $ | 4,715 | $ | 8,930 | $ | 9,430 | |||||||
Net income | $ | 24,457 | $ | 21,284 | $ | 46,570 | $ | 42,063 |
|
• | On June 23, 2014, we acquired the remaining 33% interest in SCPL from SemGroup for (i) cash of approximately $114.4 million, (ii) the issuance of 2.425 million common units, (iii) the issuance of 1.25 million Class A units, and (iv) an increase of the capital account of our general partner and a related issuance of general partner interest, to allow our general partner to maintain its 2% general partner interest in us. SCPL owns a 51% membership interest in White Cliffs. As the transaction was between entities under common control, we recorded our investment in SCPL based on SemGroup's historical cost. The purchase price in excess of historical cost was treated as an equity transaction with SemGroup, which reduced the partners' capital accounts of our general and limited partners on a pro-rata basis. |
• | On June 24, 2014, we acquired crude oil trucking assets from a subsidiary of Chesapeake Energy Corporation ("Chesapeake") for $44.0 million in cash. Highlights of the transaction include: |
◦ | 124 trucks, 122 trailers and miscellaneous equipment; and |
◦ | a long-term transportation agreement with Chesapeake Energy Marketing, Inc. |
Property, plant and equipment | $ | 21,700 | |
Customer contract intangible | 4,459 | ||
Goodwill | 17,835 | ||
Total assets acquired | $ | 43,994 |
Balance at December 31, 2013 | $ | 28,322 | |
Acquisition | 17,835 | ||
Barcas Field Services, L.L.C. purchase price adjustment | (98 | ) | |
Balance at June 30, 2014 | $ | 46,059 |
• | On January 11, 2013, we acquired a 33% interest in SCPL from SemGroup for (i) cash of approximately $189.5 million, (ii) the issuance of 1.5 million common units, (iii) the issuance of 1.25 million Class A units, and (iv) an increase of the capital account of our general partner and a related issuance of general partner interest, to allow our general partner to maintain its 2% general partner interest in us. Subsequent to the transaction, our condensed consolidated financial statements reflected our ownership in SCPL on an equity method basis. As the transaction was between entities under common control, we recorded our investment in SCPL based on SemGroup's historical cost. The purchase price in excess of historical cost was treated as an equity transaction with SemGroup, which reduced the partners' capital accounts of our general and limited partners on a pro-rata basis. |
• | On September 1, 2013, we completed the acquisition of the assets of Barcas Field Services, L.L.C. for $49.0 million. During the six months ended June 30, 2014, we recorded a non-cash adjustment to the purchase price allocation which decreased goodwill and other intangible assets by $0.1 million, with an offsetting increase to property, plant and equipment. |
• | On November 8, 2013, we acquired a 12-mile, 12-inch crude oil pipeline from Noble Energy, Inc. that extends from Platteville, Colorado to Tampa, Colorado for a purchase price of $8.2 million. |
• | On December 16, 2013, we acquired an additional 33% interest in SCPL from SemGroup in exchange for (i) cash of approximately $173.1 million, (ii) the issuance of 1.5 million common units, (iii) the issuance of 1.25 million Class A units, and (iv) an increase of the capital account of our general partner and a related issuance of general partner interest, to allow our general partner to maintain its 2% general partner interest in us. Subsequent to the transaction, we consolidated SCPL and our condensed consolidated financial statements reflect our ownership of White Cliffs under the equity method. As the transaction was between entities under common control, we recorded our investment in White Cliffs based on SemGroup's historical cost. The purchase price in excess of historical cost was treated as an equity transaction with SemGroup, which reduced the partners' capital accounts of our general and limited partners on a pro-rata basis. |
|
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
Level 1 | Netting* | Total | Level 1 | Netting* | Total | ||||||||||||||||||
Assets | $ | 185 | $ | — | $ | 185 | $ | 36 | $ | (36 | ) | $ | — | ||||||||||
Liabilities | — | — | — | 96 | (36 | ) | 60 | ||||||||||||||||
Net assets (liabilities) at fair value | $ | 185 | $ | — | $ | 185 | $ | (60 | ) | $ | — | $ | (60 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
Sales | 1,135 | 720 | 1,950 | 1,330 | |||||||
Purchases | 1,005 | 615 | 1,815 | 1,290 |
June 30, 2014 | December 31, 2013 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Commodity contracts | $ | 185 | $ | — | $ | — | $ | 60 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Commodity contracts | $ | (1,942 | ) | $ | (233 | ) | $ | (2,749 | ) | $ | (777 | ) |
|
Year | Percentage | |
2017 | 104.219% | |
2018 | 102.813% | |
2019 | 101.406% | |
2020 and thereafter | 100.000% |
|
(a) | Confirmation order appeal |
(b) | Claims reconciliation process |
Volume (Barrels) | Value | |||||
Fixed price purchases | 145 | $ | 13,348 | |||
Fixed price sales | 175 | $ | 17,720 | |||
Floating price purchases | 9,329 | $ | 949,093 | |||
Floating price sales | 9,603 | $ | 986,856 |
|
Common Units - Public | Common Units - SemGroup | Subordinated Units | Class A Units | General Partner Interest | Non-controlling Interests | Total Equity | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 159,961 | $ | 79,218 | $ | (5,375 | ) | $ | 40,772 | $ | 5,995 | $ | 78,557 | $ | 359,128 | ||||||||||||
Net income | 11,250 | 4,369 | 6,860 | (795 | ) | 1,847 | 7,758 | 31,289 | |||||||||||||||||||
Cash distributions to noncontrolling interest in SCPL | — | — | — | — | — | (10,683 | ) | (10,683 | ) | ||||||||||||||||||
Contributions from noncontrolling interest in SCPL | — | — | — | — | — | 14,367 | 14,367 | ||||||||||||||||||||
Purchase of remaining one-third interest in SCPL | — | — | — | — | — | (89,999 | ) | (89,999 | ) | ||||||||||||||||||
Equity issuance | — | 120,013 | — | 58,563 | 3,644 | — | 182,220 | ||||||||||||||||||||
Purchase price in excess of historical cost of interest in SCPL | (85,173 | ) | (42,183 | ) | (51,931 | ) | (23,213 | ) | (4,133 | ) | — | (206,633 | ) | ||||||||||||||
Unvested distribution equivalent rights | (43 | ) | — | — | — | — | — | (43 | ) | ||||||||||||||||||
Cash distributions to partners | (13,209 | ) | (4,214 | ) | (8,054 | ) | — | (1,267 | ) | — | (26,744 | ) | |||||||||||||||
Non-cash equity compensation | 390 | — | — | — | — | — | 390 | ||||||||||||||||||||
Balance at June 30, 2014 | $ | 73,176 | $ | 157,203 | $ | (58,500 | ) | $ | 75,327 | $ | 6,086 | $ | — | $ | 253,292 |
Quarter Ended | Record Date | Payment Date | Distribution Per Unit | |||
December 31, 2012 | February 4, 2013 | February 14, 2013 | $0.4025 | |||
March 31, 2013 | May 6, 2013 | May 15, 2013 | $0.4300 | |||
June 30, 2013 | August 5, 2013 | August 14, 2013 | $0.4400 | |||
September 30, 2013 | November 5, 2013 | November 14, 2013 | $0.4500 | |||
December 31, 2013 | February 4, 2014 | February 14, 2014 | $0.4650 | |||
March 31, 2014 | May 5, 2014 | May 15, 2014 | $0.4950 | |||
June 30, 2014 | August 4, 2014 | August 14, 2014 | $0.5350 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income attributable to Rose Rock Midstream, L.P. | $ | 11,048 | $ | 9,134 | $ | 23,531 | $ | 21,128 | |||||||
Less: General partner's incentive distribution earned | 888 | 72 | 1,376 | 112 | |||||||||||
Less: General partner's 2.0% ownership | 221 | 183 | 471 | 423 | |||||||||||
Net income allocated to limited partners | $ | 9,939 | $ | 8,879 | $ | 21,684 | $ | 20,593 | |||||||
Numerator for basic and diluted earnings per limited partner unit (*): | |||||||||||||||
Allocation of net income among limited partner interests: | |||||||||||||||
Net income allocable to common units | $ | 7,513 | $ | 5,208 | $ | 15,619 | $ | 11,975 | |||||||
Net income allocable to subordinated units | 3,063 | 3,674 | 6,860 | 8,447 | |||||||||||
Net income (loss) allocable to Class A units | (637 | ) | (3 | ) | (795 | ) | 171 | ||||||||
Net income allocated to limited partners | $ | 9,939 | $ | 8,879 | $ | 21,684 | $ | 20,593 | |||||||
Denominator for basic and diluted earnings per limited partner unit: | |||||||||||||||
Basic weighted average number of common units outstanding | 18,336 | 11,894 | 18,243 | 11,680 | |||||||||||
Effect of non-vested restricted units | 61 | 39 | 54 | 30 | |||||||||||
Diluted weighted average number of common units outstanding | 18,397 | 11,933 | 18,297 | 11,710 | |||||||||||
Basic and diluted weighted average number of subordinated units outstanding | 8,390 | 8,390 | 8,390 | 8,390 | |||||||||||
Basic and diluted weighted average number of Class A units outstanding | 2,596 | 1,250 | 2,548 | 1,174 | |||||||||||
Net income per limited partner unit: | |||||||||||||||
Common unit (basic) | $ | 0.41 | $ | 0.44 | $ | 0.86 | $ | 1.02 | |||||||
Common unit (diluted) | $ | 0.41 | $ | 0.44 | $ | 0.85 | $ | 1.02 | |||||||
Subordinated unit (basic and diluted) | $ | 0.37 | $ | 0.44 | $ | 0.82 | $ | 1.01 | |||||||
Class A unit (basic and diluted) | $ | (0.25 | ) | $ | 0.00 | $ | (0.31 | ) | $ | 0.15 |
|
|
|
|
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenues | $ | 34,533 | $ | 30,112 | $ | 67,807 | $ | 60,785 | |||||||
Operating, general and administrative expenses | $ | 5,539 | $ | 4,113 | $ | 12,307 | $ | 9,292 | |||||||
Depreciation and amortization expense | $ | 4,537 | $ | 4,715 | $ | 8,930 | $ | 9,430 | |||||||
Net income | $ | 24,457 | $ | 21,284 | $ | 46,570 | $ | 42,063 |
|
Property, plant and equipment | $ | 21,700 | |
Customer contract intangible | 4,459 | ||
Goodwill | 17,835 | ||
Total assets acquired | $ | 43,994 |
Balance at December 31, 2013 | $ | 28,322 | |
Acquisition | 17,835 | ||
Barcas Field Services, L.L.C. purchase price adjustment | (98 | ) | |
Balance at June 30, 2014 | $ | 46,059 |
|
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
Level 1 | Netting* | Total | Level 1 | Netting* | Total | ||||||||||||||||||
Assets | $ | 185 | $ | — | $ | 185 | $ | 36 | $ | (36 | ) | $ | — | ||||||||||
Liabilities | — | — | — | 96 | (36 | ) | 60 | ||||||||||||||||
Net assets (liabilities) at fair value | $ | 185 | $ | — | $ | 185 | $ | (60 | ) | $ | — | $ | (60 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
Sales | 1,135 | 720 | 1,950 | 1,330 | |||||||
Purchases | 1,005 | 615 | 1,815 | 1,290 |
June 30, 2014 | December 31, 2013 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Commodity contracts | $ | 185 | $ | — | $ | — | $ | 60 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Commodity contracts | $ | (1,942 | ) | $ | (233 | ) | $ | (2,749 | ) | $ | (777 | ) |
|
Year | Percentage | |
2017 | 104.219% | |
2018 | 102.813% | |
2019 | 101.406% | |
2020 and thereafter | 100.000% |
|
Volume (Barrels) | Value | |||||
Fixed price purchases | 145 | $ | 13,348 | |||
Fixed price sales | 175 | $ | 17,720 | |||
Floating price purchases | 9,329 | $ | 949,093 | |||
Floating price sales | 9,603 | $ | 986,856 |
|
Common Units - Public | Common Units - SemGroup | Subordinated Units | Class A Units | General Partner Interest | Non-controlling Interests | Total Equity | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 159,961 | $ | 79,218 | $ | (5,375 | ) | $ | 40,772 | $ | 5,995 | $ | 78,557 | $ | 359,128 | ||||||||||||
Net income | 11,250 | 4,369 | 6,860 | (795 | ) | 1,847 | 7,758 | 31,289 | |||||||||||||||||||
Cash distributions to noncontrolling interest in SCPL | — | — | — | — | — | (10,683 | ) | (10,683 | ) | ||||||||||||||||||
Contributions from noncontrolling interest in SCPL | — | — | — | — | — | 14,367 | 14,367 | ||||||||||||||||||||
Purchase of remaining one-third interest in SCPL | — | — | — | — | — | (89,999 | ) | (89,999 | ) | ||||||||||||||||||
Equity issuance | — | 120,013 | — | 58,563 | 3,644 | — | 182,220 | ||||||||||||||||||||
Purchase price in excess of historical cost of interest in SCPL | (85,173 | ) | (42,183 | ) | (51,931 | ) | (23,213 | ) | (4,133 | ) | — | (206,633 | ) | ||||||||||||||
Unvested distribution equivalent rights | (43 | ) | — | — | — | — | — | (43 | ) | ||||||||||||||||||
Cash distributions to partners | (13,209 | ) | (4,214 | ) | (8,054 | ) | — | (1,267 | ) | — | (26,744 | ) | |||||||||||||||
Non-cash equity compensation | 390 | — | — | — | — | — | 390 | ||||||||||||||||||||
Balance at June 30, 2014 | $ | 73,176 | $ | 157,203 | $ | (58,500 | ) | $ | 75,327 | $ | 6,086 | $ | — | $ | 253,292 |
Quarter Ended | Record Date | Payment Date | Distribution Per Unit | |||
December 31, 2012 | February 4, 2013 | February 14, 2013 | $0.4025 | |||
March 31, 2013 | May 6, 2013 | May 15, 2013 | $0.4300 | |||
June 30, 2013 | August 5, 2013 | August 14, 2013 | $0.4400 | |||
September 30, 2013 | November 5, 2013 | November 14, 2013 | $0.4500 | |||
December 31, 2013 | February 4, 2014 | February 14, 2014 | $0.4650 | |||
March 31, 2014 | May 5, 2014 | May 15, 2014 | $0.4950 | |||
June 30, 2014 | August 4, 2014 | August 14, 2014 | $0.5350 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income attributable to Rose Rock Midstream, L.P. | $ | 11,048 | $ | 9,134 | $ | 23,531 | $ | 21,128 | |||||||
Less: General partner's incentive distribution earned | 888 | 72 | 1,376 | 112 | |||||||||||
Less: General partner's 2.0% ownership | 221 | 183 | 471 | 423 | |||||||||||
Net income allocated to limited partners | $ | 9,939 | $ | 8,879 | $ | 21,684 | $ | 20,593 | |||||||
Numerator for basic and diluted earnings per limited partner unit (*): | |||||||||||||||
Allocation of net income among limited partner interests: | |||||||||||||||
Net income allocable to common units | $ | 7,513 | $ | 5,208 | $ | 15,619 | $ | 11,975 | |||||||
Net income allocable to subordinated units | 3,063 | 3,674 | 6,860 | 8,447 | |||||||||||
Net income (loss) allocable to Class A units | (637 | ) | (3 | ) | (795 | ) | 171 | ||||||||
Net income allocated to limited partners | $ | 9,939 | $ | 8,879 | $ | 21,684 | $ | 20,593 | |||||||
Denominator for basic and diluted earnings per limited partner unit: | |||||||||||||||
Basic weighted average number of common units outstanding | 18,336 | 11,894 | 18,243 | 11,680 | |||||||||||
Effect of non-vested restricted units | 61 | 39 | 54 | 30 | |||||||||||
Diluted weighted average number of common units outstanding | 18,397 | 11,933 | 18,297 | 11,710 | |||||||||||
Basic and diluted weighted average number of subordinated units outstanding | 8,390 | 8,390 | 8,390 | 8,390 | |||||||||||
Basic and diluted weighted average number of Class A units outstanding | 2,596 | 1,250 | 2,548 | 1,174 | |||||||||||
Net income per limited partner unit: | |||||||||||||||
Common unit (basic) | $ | 0.41 | $ | 0.44 | $ | 0.86 | $ | 1.02 | |||||||
Common unit (diluted) | $ | 0.41 | $ | 0.44 | $ | 0.85 | $ | 1.02 | |||||||
Subordinated unit (basic and diluted) | $ | 0.37 | $ | 0.44 | $ | 0.82 | $ | 1.01 | |||||||
Class A unit (basic and diluted) | $ | (0.25 | ) | $ | 0.00 | $ | (0.31 | ) | $ | 0.15 |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|