Shell Midstream Partners (SHLX) increases quarterly distribution to $0.333/unit

• Shell Midstream Partners increases quarterly distribution to $0.333/unit from $0.318/unit

 

Shell Midstream Partners (SHLX) reported earnings on Fri 3 Nov 2017 (b/o)

Pipeline transportation of crude oil company

• Headquarters: Houston, TX
• Founded: 2014
• shellmidstreampartners.com
• Div/yield 0.32/4.87

** charts before earnings **

 

** charts after earnings **

Shell Midstream Partners beats by $0.03, beats on revs; co declared a cash distribution of $0.3180/limited partnership for Q3, a 4.6% increase 

• Reports Q3 (Sep) earnings of $0.31 per share, $0.03 better than the Capital IQ Consensus of $0.28; revenues rose 39.0% year/year to $94.4 mln vs the $86.36 mln Capital IQ Consensus
• Cash available for distribution was $83.9 million, compared to $88.7 million for the prior quarter, driven by better underlying performance offset by impacts from Hurricane Harvey
• Total cash distribution declared was $77.4 million resulting in a 1.1x coverage ratio
• "Underlying performance across Shell Midstream Partners in the third quarter was good: throughput volumes increased across the portfolio, distribution growth remained in line with our promise, and we achieved a 1.1x coverage ratio for the quarter. And these positive results were accomplished despite the impact of Hurricane Harvey, which as everyone knows, was a significant event for the Texas Gulf Coast" said John Hollowell, CEO of Shell Midstream Partners  

Shell Midstream Partners LP (SHLX) began trading on the NYSE on Wed 29 Oct 2014

(Reuters) - Shell Midstream Partners LP SHLX), a master limited partnership formed by Royal Dutch Shell Plc , priced its enlarged initial public offering of 40 million units at $23 per unit, above its expected price range of $19-$21 per unit.

The company’s IPO raised about $920 million, valuing the company at up to $1.56 billion. It had planned to sell 37.5 million units.

Shell Midstream owns stakes in four onshore and offshore pipelines in Texas and Louisiana.

This includes a 43 percent stake in a crude oil pipeline connecting Houston to Houma, a 28.6 percent stake in a pipeline to the offshore Mars field in the Gulf of Mexico, and a 49 percent stake in a refined products pipeline linked to four Louisiana refineries.

The MLP structure allows companies to raise money in the stock market while having income taxed only at the unit holder level, avoiding corporate income taxes.

MLPs that hold midstream assets such as pipelines and storage facilities have found favor with investors since they distribute most of their earnings to shareholders.

Barclays and Citigroup are among the lead underwriters for the IPO.