HOUSTON--(BUSINESS WIRE)--LRR Energy, L.P. (NYSE:LRE) (“LRR Energy”) announced today its operating and financial results for the three months and year ended December 31, 2012.
Selected Financial and Operating Information
Our financial statements for the year ended December 31, 2012, have been recast as if we had owned the assets acquired on June 1, 2012, from Lime Rock Resources since our initial public offering, as the transaction was between entities under common control. A summary of selected financial and operating information follows. For consolidated financial statements, please see the accompanying tables on pages 7-9.
| Three Months Ended | Year Ended | |||||||
| December 31, 2012 | December 31, 2012 | |||||||
| (in thousands) | ||||||||
| Oil, natural gas and natural gas liquids sales | $ | 22,068 | $ | 93,363 | ||||
| Realized gain on commodity derivative instruments | $ | 5,474 | $ | 23,350 | ||||
| Unrealized loss on commodity derivative instruments | $ | (809 | ) | $ | (11,264 | ) | ||
| Lease operating expense | $ | 5,490 | $ | 25,617 | ||||
| Production and ad valorem taxes | $ | 1,661 | $ | 7,009 | ||||
| General and administrative expense | $ | 4,037 | $ | 12,632 | ||||
| Interest expense | $ | 2,055 | $ | 6,596 | ||||
| Net income (loss) | $ | (499 | ) | $ | 2,262 | |||
| Net income (loss) available to unitholders | $ | (499 | ) | $ | (3 | ) | ||
| Net loss per limited partner unit | $ | (0.02 | ) | $ | (0.00 | ) | ||
| Capital expenditures | $ | 4,740 | $ | 31,416 | ||||
| Adjusted EBITDA (1) | $ | 16,448 | $ | 71,813 | ||||
| Distributable cash flow (1) | $ | 9,219 | $ | 44,094 | ||||
| Distribution coverage ratio (1) | 0.85x | 1.03x | ||||||
|
(1) Non-GAAP financial measure. See reconciliation of non-GAAP financial measures on page 10. |
||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, 2012 | December 31, 2012 | ||||||||||||||
| Average net production (Boe/d) | 5,935 | 6,303 | |||||||||||||
| Average unit costs per Boe: | |||||||||||||||
| Lease operating expense | $ | 10.05 | $ | 11.11 | |||||||||||
| Production and ad valorem taxes | $ | 3.04 | $ | 3.04 | |||||||||||
| General and administrative expense | $ | 7.39 | $ | 5.48 | |||||||||||
Full year 2012 production of 6,303 Boe/d was in line with our public guidance. Fourth quarter 2012 production of 5,935 Boe/d was generally consistent with our internal forecast, albeit slightly lower. An unexpected compressor failure at our Pecos Slope field in late November 2012 negatively impacted fourth quarter production by approximately 35 Boe/d. The compressor was back in service in mid February 2013.
Proved Reserves
As of December 31, 2012, LRR Energy had 27.9 MMBoe of estimated proved reserves, of which approximately 85% were proved developed reserves. Our reserves are 53% natural gas and 47% oil and NGLs as measured by volume as of December 31, 2012. These estimates were calculated using the unweighted arithmetic average first-day-of-the-month closing price for each month of 2012. The average trailing twelve-month index prices were $94.71/Bbl for NYMEX-WTI and $2.76/MMBtu for NYMEX-Henry Hub natural gas. For NGL pricing, a differential is applied to the $94.71/Bbl average trailing twelve-month index price for oil. As of December 31, 2012, the standardized measure of our estimated proved reserves was $325.2 million.
Recent Events
On January 3, 2013, LRR Energy closed its previously announced acquisition of oil and natural gas properties in the Mid-Continent region in Oklahoma from its sponsor, Lime Rock Resources, for a purchase price of $21.0 million, subject to customary purchase price adjustments. In addition, as part of the transaction, LRE acquired in the money commodity hedge contracts valued at approximately $1.8 million as of the closing date. LRE funded the acquisition with borrowings under its revolving credit facility. As of March 6, 2013, LRE had $205 million of outstanding borrowings under its revolving credit facility and $50 million of outstanding borrowings under its term loan. LRE currently has $45 million available under its credit facility which management believes provides ample financial flexibility to execute our 2013 capital program and distribution strategy.
On February 14, 2013, LRR Energy paid its cash distribution for the fourth quarter of 2012 to all unitholders of record as of the close of business on January 30, 2013. The Board of Directors of its general partner previously declared a cash distribution for the fourth quarter of 2012 of $0.4800 per outstanding unit, or $1.92 on an annualized basis.
Our average net production for February 2013 was approximately 5,900 Boe/d. We expect our first quarter 2013 production to be negatively impacted by approximately 109 Boe/d relating to the Pecos Slope compressor failure discussed above.
2013 Guidance
Based on current estimates, and assuming no future acquisitions, our 2013 guidance is as follows:
| 2013 Guidance | ||
| Daily Production (Boe/d) | 6,200 - 6,500 | |
| LOE ($/Boe) | $10.00 - $10.50 | |
| Capital Expenditures ($MM) | ||
| Maintenance |
$19.2 |
|
| Growth and other | 8.8 | |
| Total | $28.0 | |
Our annual maintenance capital expenditures were estimated based on 25% of pro forma trailing 12-month adjusted EBITDA. The guidance above sets forth management’s best estimate based on current and anticipated market conditions and other factors. While we believe that these estimates and assumptions are reasonable, they are inherently uncertain and are subject to, among other things, significant business, economic, regulatory, environmental and competitive risks and uncertainties that could cause actual results to differ materially from those we anticipate, as set forth under “Forward-Looking Statements.”
Commodity Derivative Contracts
As of December 31, 2012, LRR Energy had the following outstanding derivative contracts.
| Index | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||||||||||||||||
| Natural gas positions | |||||||||||||||||||||||||||||||
| Price swaps (MMBTUs) | NYMEX-HH | 7,267,590 | 5,876,100 | 5,326,560 | 4,878,990 | 4,605,396 | |||||||||||||||||||||||||
| Weighted average price | $ | 5.15 | $ | 5.52 | $ | 5.71 | $ | 4.28 | $ | 4.61 | |||||||||||||||||||||
| Basis swaps (MMBTUs) | NYMEX | 7,446,301 | 5,876,098 | 5,326,559 | 2,877,047 | - | |||||||||||||||||||||||||
| Weighted average price | $ | (0.1361 | ) | $ | (0.1521 | ) | $ | (0.1661 | ) | $ | (0.1115 | ) | $ | - | |||||||||||||||||
| Puts (MMBTUs) | NYMEX-HH | 178,710 | - | - | - | - | |||||||||||||||||||||||||
| Strike price | $ | 3.00 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
| Oil positions | |||||||||||||||||||||||||||||||
| Price swaps (BBLs) | NYMEX-WTI | 620,772 | 460,926 | 398,253 | 397,488 | 198,744 | |||||||||||||||||||||||||
| Weighted average price | $ | 95.19 | $ | 96.29 | $ | 94.49 | $ | 86.02 | $ | 85.75 | |||||||||||||||||||||
| NGL positions | |||||||||||||||||||||||||||||||
|
Price swaps (BBLs) |
Mont Belvieu | 144,323 | - | - | - | - | |||||||||||||||||||||||||
| Weighted average price | $ | 50.49 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Subsequent to December 31, 2012, LRR Energy entered into the following commodity hedges.
| Index | 2013 | 2014 | |||||||||||||||
| Oil Positions | |||||||||||||||||
| Basis swaps (Bbls) | Midland – WTI Cushing | 419,425 | 410,400 | ||||||||||||||
| Weighted average price | $ | (1.25 | ) | $ | (1.00 | ) | |||||||||||
As part of the 2013 acquisition described above, LRE acquired the following crude oil and natural gas hedges:
| Index | 2013 | 2014 | 2015 | |||||||||||||||||
| Natural gas positions | ||||||||||||||||||||
| Price swaps (MMBTUs) | NYMEX-HH | 248,950 | 200,916 | 173,676 | ||||||||||||||||
| Weighted average price | $ | 5.23 | $ | 5.58 | $ | 5.96 | ||||||||||||||
| Oil positions | ||||||||||||||||||||
| Price swaps (BBLs) | NYMEX-WTI | 39,794 | 28,176 | 22,128 | ||||||||||||||||
| Weighted average price | $ | 101.30 | $ | 100.01 | $ | 98.90 | ||||||||||||||
Annual Report
LRR Energy expects to file its Annual Report on Form 10-K with the Securities and Exchange Commission no later than March 13, 2013. The 10-K will be available on the Investor Relations page of LRR Energy’s website www.lrrenergy.com or from the Securities and Exchange Commission website www.sec.gov.
Webcast and Conference Call
LRR Energy will host a webcast and conference call on Thursday, March 7, 2013, at 3:00 p.m. EST (2:00 p.m. CST) to discuss these results. Interested parties are invited to participate in the call by dialing 1-877-493-8071 (conference ID: 91224569). It is recommended that participants dial in approximately 10 minutes prior to the start of the conference call. Participants may access the webcast from LRR Energy’s website, www.lrrenergy.com, under the tab for "Investor Relations."
A telephonic replay will be available after the call through March 25, 2013. Participants may access this replay by dialing 1-800-585-8367 (conference ID: 91224569).
About LRR Energy, L.P.
LRR Energy is a Delaware limited partnership formed in April 2011 by affiliates of Lime Rock Resources to operate, acquire, exploit and develop producing oil and natural gas properties in North America. LRR Energy's properties are located in the Permian Basin region in West Texas and southeast New Mexico, the Mid-Continent region in Oklahoma and East Texas and the Gulf Coast region in Texas.
Forward-Looking Statements
This press release includes "forward-looking statements" — that is, statements related to future events. Forward-looking statements are based on the current expectations of LRR Energy and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "may," "predict," "pursue," "expect," "estimate," "project," "plan," "believe," "intend," "achievable," "anticipate," "target," "continue," "potential," "should," "could" and other similar words. Actual results and future events could differ materially from those anticipated or implied in such statements. Forward-looking statements involve certain risks and uncertainties, and ultimately may not prove to be accurate. These risks and uncertainties include, among other things, a decline in oil, natural gas or NGL prices, the risk and uncertainties involved in producing oil and natural gas, competition in the oil and natural gas industry, governmental regulations and other factors. Actual results could differ materially from those anticipated or implied in the forward-looking statements due to the factors described under the captions "Risk Factors" in LRR Energy's Annual Report on Form 10-K for the year ended December 31, 2011 and LRR Energy's subsequent filings with the SEC. All forward-looking statements speak only as of the date of this press release. LRR Energy does not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise. All forward-looking statements are qualified in their entirety by this cautionary statement.
| LRR Energy, L.P. | ||||||||
| Selected Operating Data | ||||||||
| For the Three Months and Year Ended December 31, 2012 | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | Year Ended | |||||||
| December 31, 2012 | December 31, 2012 | |||||||
| Production: | ||||||||
| Oil (MBbls) | 166 | 696 | ||||||
| Natural gas (MMcf) | 1,844 | 7,942 | ||||||
| NGLs (MBbls) | 73 | 287 | ||||||
| Total (MBoe) | 546 | 2,307 | ||||||
| Average net production (Boe/d) | 5,935 | 6,303 | ||||||
| Average sales price: | ||||||||
| Oil (per Bbl): | ||||||||
| Sales price | $ | 81.44 | $ | 87.55 | ||||
| Effect of realized commodity derivative instruments | 9.16 | 5.25 | ||||||
| Realized sales price | $ | 90.60 | $ | 92.80 | ||||
| Natural gas (per Mcf): | ||||||||
| Sales price | $ | 3.28 | $ | 2.71 | ||||
| Effect of realized commodity derivative instruments | 1.86 | 2.28 | ||||||
| Realized sales price | $ | 5.14 | $ | 4.99 | ||||
| NGLs (per Bbl): | ||||||||
| Sales price | $ | 34.30 | $ | 38.00 | ||||
| Effect of realized commodity derivative instruments | 7.26 | 5.66 | ||||||
| Realized sales price | $ | 41.56 | $ | 43.66 | ||||
| Average unit costs per Boe: | ||||||||
| Lease operating expenses | $ | 10.05 | $ | 11.11 | ||||
| Production and ad valorem taxes | $ | 3.04 | $ | 3.04 | ||||
| General and administrative expenses | $ | 7.39 | $ | 5.48 | ||||
| Depletion and depreciation | $ | 24.63 | $ | 18.03 | ||||
| LRR Energy, L.P. | |||||||||||||
| Consolidated Condensed Statement of Operations | |||||||||||||
| For the Three Months and Year Ended December 31, 2012 | |||||||||||||
| (in thousands, except per unit amounts) | |||||||||||||
| (unaudited) | |||||||||||||
| Three Months | |||||||||||||
| Ended | Year Ended | ||||||||||||
| December 31, 2012 | December 31, 2012 | ||||||||||||
| Revenues: | |||||||||||||
| Oil sales | $ | 13,519 | $ | 60,934 | |||||||||
| Natural gas sales | 6,045 | 21,522 | |||||||||||
| Natural gas liquids sales | 2,504 | 10,907 | |||||||||||
|
Realized gain on commodity derivative instruments |
5,474 | 23,350 | |||||||||||
|
Unrealized loss on commodity derivative instruments |
(809 | ) | (11,264 | ) | |||||||||
| Other income | 12 | 45 | |||||||||||
| Total revenues | 26,745 | 105,494 | |||||||||||
| Operating expenses: | |||||||||||||
| Lease operating expense | 5,490 | 25,617 | |||||||||||
| Production and ad valorem taxes | 1,661 | 7,009 | |||||||||||
| Depletion and depreciation | 13,457 | 41,583 | |||||||||||
|
Impairment of oil and natural gas properties |
- | 3,544 | |||||||||||
| Accretion expense | 374 | 1,460 | |||||||||||
|
Loss (gain) on settlement of asset retirement obligations |
(17 | ) | (31 | ) | |||||||||
| General and administrative expense | 4,037 | 12,632 | |||||||||||
| Total operating expenses | 25,002 | 91,814 | |||||||||||
| Operating income | 1,743 | 13,680 | |||||||||||
| Other income (expense), net | |||||||||||||
| Interest expense | (2,055 | ) | (6,596 | ) | |||||||||
|
Realized loss on interest rate derivative instruments |
(171 | ) | (465 | ) | |||||||||
|
Unrealized loss on interest rate derivative instruments |
(14 | ) | (4,185 | ) | |||||||||
| Other income (expense), net | (2,240 | ) | (11,246 | ) | |||||||||
| Income (loss) before taxes | (497 | ) | 2,434 | ||||||||||
| Income tax expense | (2 | ) | (172 | ) | |||||||||
| Net income (loss) | $ | (499 | ) | $ | 2,262 | ||||||||
|
Net income (loss) attributable to predecessor operations |
- | (2,265 | ) | ||||||||||
| Net loss available to unitholders | $ | (499 | ) | $ | (3 | ) | |||||||
|
Computation of net loss per limited partner unit: |
|||||||||||||
| General partners’ interest in net loss | $ | - | $ | - | |||||||||
| Limited partners’ interest in net loss | $ | (499 | ) | $ | (3 | ) | |||||||
| Net loss per limited partner unit | $ | (0.02 | ) | $ | (0.00 | ) | |||||||
|
Weighted average number of limited partner units outstanding |
22,429 | 22,425 | |||||||||||
| LRR Energy, L.P. | |||||||||
| Consolidated Condensed Statement of Cash Flows | |||||||||
| For the Year Ended December 31, 2012 | |||||||||
| (in thousands) | |||||||||
| (unaudited) | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
| Net income | $ | 2,262 | |||||||
|
Adjustments to reconcile net income to net cash provided by operating activities |
|||||||||
| Depletion and depreciation | 41,583 | ||||||||
| Impairment of oil and natural gas properties | 3,544 | ||||||||
| Unrealized loss on derivative instruments, net | 15,449 | ||||||||
| Accretion expense | 1,460 | ||||||||
| Amortization of equity awards | 313 | ||||||||
| Amortization of deferred financing costs and other | 388 | ||||||||
| Gain on settlement of asset retirement obligations | (31 | ) | |||||||
| Purchase of derivative contracts | (59 | ) | |||||||
| Changes in operating assets and liabilities | |||||||||
| Change in oil and natural gas sales | 4,552 | ||||||||
| Change in trade and other | 1,122 | ||||||||
| Change in prepaid expenses | (170 | ) | |||||||
| Change in trade accounts payable | (2,707 | ) | |||||||
| Change in amounts due from affiliates | 1,441 | ||||||||
| Change in accrued liabilities | (1,331 | ) | |||||||
| Change in deferred tax liability | 85 | ||||||||
| Net cash provided by operating activities | 67,901 | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
| Acquisition of oil and natural gas properties | (1,003 | ) | |||||||
| Development of oil and natural gas properties | (30,397 | ) | |||||||
| Expenditures for other property and equipment | (16 | ) | |||||||
| Net cash used in investing activities | (31,416 | ) | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
| Contribution to Fund I | (4,869 | ) | |||||||
| Deferred financing costs | (562 | ) | |||||||
| Borrowings under revolving credit facility | 77,200 | ||||||||
| Payments on revolving credit facility | (55,000 | ) | |||||||
| Borrowings under term loan | 50,000 | ||||||||
| Distribution to Fund I | (64,038 | ) | |||||||
| Distributions to unitholders | (37,262 | ) | |||||||
| Net cash used in financing activities | (34,531 | ) | |||||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,954 | ||||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 1,513 | ||||||||
| CASH AND CASH EQUIVALENTS, END OF THE PERIOD | $ | 3,467 | |||||||
|
Supplemental disclosure of non-cash items to reconcile investing and financing activities |
|||||||||
| Property and equipment: | |||||||||
| Accrued capital costs | 940 | ||||||||
| Asset retirement obligations | (257 | ) | |||||||
| LRR Energy, L.P. | ||||||||||
| Consolidated Condensed Balance Sheet | ||||||||||
| December 31, 2012 | ||||||||||
| (in thousands, except unit amounts) | ||||||||||
| (unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 3,467 | ||||||||
| Accounts receivable | 7,250 | |||||||||
| Commodity derivative instruments | 15,399 | |||||||||
| Prepaid expenses | 748 | |||||||||
| Total current assets | 26,864 | |||||||||
| Property and equipment (successful efforts method) | 763,817 | |||||||||
| Accumulated depletion, depreciation and impairment | (308,569 | ) | ||||||||
| Total property and equipment, net | 455,248 | |||||||||
| Commodity derivative instruments | 18,815 | |||||||||
| Deferred financing costs, net of accumulated amortization | 1,559 | |||||||||
| TOTAL ASSETS | $ | 502,486 | ||||||||
| LIABILITIES AND UNITHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accrued liabilities | $ | 1,415 | ||||||||
| Accrued capital cost | 2,361 | |||||||||
| Commodity derivative instruments | 1,671 | |||||||||
| Due to affiliates | 1,977 | |||||||||
| Interest rate derivative instruments | 659 | |||||||||
| Asset retirement obligations | 500 | |||||||||
| Total current liabilities | 8,583 | |||||||||
| Long-term liabilities: | ||||||||||
| Commodity derivative instruments | 874 | |||||||||
| Interest rate derivative instruments | 3,526 | |||||||||
| Term loan | 50,000 | |||||||||
| Revolving credit facility | 178,000 | |||||||||
| Asset retirement obligations | 31,548 | |||||||||
| Deferred tax liabilities | 120 | |||||||||
| Total long-term liabilities | 264,068 | |||||||||
| Total liabilities | 272,651 | |||||||||
| Unitholders’ equity: | ||||||||||
|
General partner (22,400 units issued and outstanding as of December 31, 2012) |
396 | |||||||||
|
Public common unitholders (10,676,742 units issued and outstanding as of December 31, 2012) |
169,919 | |||||||||
|
Affiliated common unitholders (5,049,600 units issued and outstanding as of December 31, 2012) |
25,563 | |||||||||
|
Subordinated unitholders (6,720,000 units issued and outstanding as of December 31, 2012) |
33,957 | |||||||||
| Total unitholders’ equity | 229,835 | |||||||||
| TOTAL LIABILITIES AND UNITHOLDERS’ EQUITY | $ | 502,486 | ||||||||
|
LRR Energy, L.P. |
|
Non-GAAP Reconciliation |
|
For the Three Months and Year Ended December 31, 2012 |
|
(in thousands) |
|
(unaudited) |
We define Adjusted EBITDA as net income (loss) plus income tax expense (benefit); interest expense-net, including realized and unrealized losses on interest rate derivative contracts; depletion and depreciation; accretion of asset retirement obligations; amortization of equity awards; (gain) loss on settlement of asset retirement obligations; unrealized losses on commodity derivative contracts; impairment of oil and natural gas properties; less interest income; unrealized gains on commodity derivative contracts and other non-recurring items that we deem appropriate. Distributable Cash Flow is defined as Adjusted EBITDA less income tax expense; cash interest expense; and estimated maintenance capital expenditures. Distribution Coverage Ratio is defined as the ratio of Distributable Cash Flow to the total quarterly distribution payable on all of our outstanding common, subordinated and general partner units.
Adjusted EBITDA, Distributable Cash Flow and the Distribution Coverage Ratio are used as supplemental financial measures by our management and by external users of our financial statements, such as investors, commercial banks and others, to assess our operating performance as compared to that of other companies and partnerships in our industry, without regard to financing methods, capital structure or historical cost basis and the ability of our assets to generate sufficient cash flow to make distributions to our unitholders.
Our management believes that Adjusted EBITDA, Distributable Cash Flow and the Distribution Coverage Ratio are useful to investors because these measures are used by many partnerships in the industry as measures of operating and financial performance and are commonly employed by financial analysts and others to evaluate our operating and financial performance from period to period and to compare it with the performance of other publicly traded partnerships within the industry. Adjusted EBITDA, Distributable Cash Flow and the Distribution Coverage Ratio should not be considered alternatives to net income, operating income, cash flow from operating activities or any other measures of financial performance presented in accordance with GAAP. Our Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA, Distributable Cash Flow or the Distribution Coverage Ratio in the same manner. The following table presents a reconciliation of Adjusted EBITDA to net income, our most directly comparable GAAP financial performance measure, for the three months and year ended December 31, 2012.
| Three Months Ended | Year Ended | |||||||||||
| December 31, 2012 | December 31, 2012 | |||||||||||
| Net income (loss) | $ | (499 | ) | $ | 2,262 | |||||||
| Income tax expense | 2 | 172 | ||||||||||
| Interest expense, net | 2,240 | 11,246 | ||||||||||
| Depletion and depreciation | 13,457 | 41,583 | ||||||||||
| Accretion of asset retirement obligations | 374 | 1,460 | ||||||||||
| Amortization of equity awards | 82 | 313 | ||||||||||
| (Gain) loss on settlement of asset retirement obligations | (17 | ) | (31 | ) | ||||||||
| Unrealized losses on commodity derivative instruments | 809 | 11,264 | ||||||||||
| Impairment of oil and natural gas properties | - | 3,544 | ||||||||||
| Interest income | - | - | ||||||||||
| Unrealized gain on commodity derivative instruments | - | - | ||||||||||
| Adjusted EBITDA | $ | 16,448 | $ | 71,813 | ||||||||
The following table presents a reconciliation of Distributable Cash Flow and the Distribution Coverage Ratio to Adjusted EBITDA for the three months and year ended December 31, 2012. Adjusted EBITDA is reconciled to net income, our most directly comparable GAAP financial performance measure, above.
| Three Months Ended | Year Ended | |||||||||||||
| December 31, 2012 | December 31, 2012 | |||||||||||||
| Adjusted EBITDA | $ | 16,448 | $ | 71,813 | ||||||||||
| Income tax expense | (2 | ) | (172 | ) | ||||||||||
| Cash Interest expense | (1,977 | ) | (6,547 | ) | ||||||||||
| Estimated maintenance capital (1) | (5,250 | ) | (21,000 | ) | ||||||||||
| Distributable Cash Flow | $ | 9,219 | $ | 44,094 | ||||||||||
| Cash distribution | $ | 10,785 | $ | 42,834 | ||||||||||
| Distribution Coverage Ratio | 0.85x | 1.03x | ||||||||||||
|
(1) Amount represents annual amount pro-rated for the period. |
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