Tallgrass Energy Partners, LP (TEGP) has reported a 64.03 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $66.68 million, or $0.51 a share in the quarter, compared with $40.65 million, or $0.40 a share for the same period last year.
Revenue during the quarter grew 6.83 percent to $160.66 million from $150.38 million in the previous year period. Gross margin for the quarter expanded 41 basis points over the previous year period to 68.53 percent. Total expenses were 55.88 percent of quarterly revenues, down from 58.16 percent for the same period last year. This has led to an improvement of 228 basis points in operating margin to 44.12 percent.
Operating income for the quarter was $70.89 million, compared with $62.92 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $143.96 million compared with $184.57 million in the prior year period.
"Tallgrass Energy again outperformed our expectations and guidance for 2016, largely driven by strong asset performance and the acquisitions of interests in the Pony Express and Rockies Express pipelines," said Tallgrass Energy president and chief executive officer David G. Dehaemers Jr. "We steadily managed TEP through a volatile energy market in 2016, and delivered outstanding distribution growth of approximately 27 percent for TEP and 60 percent for TEGP while maintaining low leverage and healthy excess distribution coverage."
Operating cash flow improves significantly
Tallgrass Energy Partners, LP has generated cash of $409.48 million from operating activities during the year, up 41.54 percent or $120.19 million, when compared with the last year.
The company has spent $581.70 million cash to meet investing activities during the year as against cash outgo of $845.27 million in the last year.
Cash flow from financing activities was $172.48 million for the year, down 69.02 percent or $384.24 million, when compared with the last year.
Cash and cash equivalents stood at $1.87 million as on Dec. 31, 2016, up 16.26 percent or $0.26 million from $1.61 million on Dec. 31, 2015.
Debt increases substantially
Tallgrass Energy Partners, LP has witnessed an increase in total debt over the last one year. It stood at $1,407.98 million as on Dec. 31, 2016, up 86.98 percent or $654.98 million from $753 million on Dec. 31, 2015. Tallgrass Energy has witnessed an increase in long-term debt over the last one year. It stood at $1,407.98 million as on Dec. 31, 2016, up 86.98 percent or $654.98 million from $753 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 5.43 for the quarter from 14.60 for the same period last year.
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