Revenue during the quarter dropped 6.22 percent to $67.90 million from $72.40 million in the previous year period. Gross margin for the quarter contracted 692 basis points over the previous year period to 75.41 percent. Total expenses were 46.98 percent of quarterly revenues, up from 32.46 percent for the same period last year. That has resulted in a contraction of 1452 basis points in operating margin to 53.02 percent.

Operating income for the quarter was $36 million, compared with $48.90 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $70.90 million compared with $78.40 million in the prior year period.

"Our systems have demonstrated resilience despite volatility in the industry and have delivered consistent results on a quarterly basis. We have continued to build the scale with six acquisitions over the last two years totaling $2.3 billion and have more than tripled the EBITDA of Shell Midstream Partners," said John Hollowell, chief executive officer, Shell Midstream Partners. "As we look ahead, and based on current market performance, we plan to acquire between $2.5 and $2.9 billion of assets from our sponsor through 2018. We also are targeting distributions growth at a 20% compound annual growth rate (CAGR) over the same period."