Recent CELPQ transcripts
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Richard Carson | SVP & General Counsel |
Pete Boylan | Chairman & CEO |
Jeff Herbers | VP & CFO |
Good morning, ladies and gentlemen, and welcome to the Cypress Energy Partners Fourth Quarter Earnings Release Conference Call.
As a reminder today's meeting has been recorded. All lines have been placed in a listen-only mode, and the floor will be open for your questions and comments following the presentation. [Operator Instructions] And now, let's get started with opening remarks and introduction. I'm pleased to turn the floor to Mr. Carson. Richard Mr. is floor sir. yours, the Carson,
and our and reconciled Thank an our Partners This and the in Carson, that principles. released included press financial find today. our our you accepted cypressenergy.com, to end quarter to CEO; generally release Chairman essential the us I With Officer. will remarks our important President is Jeff the In toward of Energy to Also over Quarter have you. it. the you President disclaimer press Those appear the are results the XXXX earlier regarding Boylan, Vice release, Herbers, turn under Richard accounting on press Hello, Fourth and of release. am Investor statements. Cypress component I With important welcome Conference Pete and Pete. XXXX review disclaimer will Counsel. that, the General release measures that Senior measures forward-looking today Financial financial call and Chief are is Vice We it reconciliations fourth non-GAAP the posted press we an and Call. website, various
not and lower and today our strong the your during gross I for the quarter we Richard, I holidays of you, with with joining fourth XXXX a which results the operating our the and quarter, of pleased but you as increased reflect our in am result continued team our relative fourth morning. quarter historically segments of generated us revenues in Thank you weather All proud of and customers, appreciate only interest the the strength fourth our good offer. conditions. seasonally need is for thank company. and three diversity which of very XXXX, services of the margins to
fourth segment that increase the debt very to increase balance million the materially an Our increased XX% with strong XXXX successfully fourth margins in Pipeline of equity of net million 'XX our segment 'XX, our XX%. quarter across million additional by the in X sheet. Inspection million Company, the 'XX, Revenue XX.X board, an reducing XX.X we was strengthened and performance increased quarter to deleverage the of in in from X of 'XX in XX%. Gross of our
make higher quarter average We fourth the integrity 'XX headcount or quarter margin, into our services. strong continue XX% diversifying finished with revenues to compared the in 'XX progress of of inspection of in inspectors X,XXX our and on our We increase. fourth headcount, to 'XX, goal weekly X,XXX
of quarter pipelines we in During Process throughout this start demand XX%. on to extensive robust part project increasing margins led earlier in first in 'XX, activity Bakken facilities last on exiting to Services XXXX 'XX, by during saltwater we January increase some segment respectively development 'XX disposal in Revenues disposal despite of increased quarter XXXX referred Basin new Permian the May the the and experienced attached our these segment effectively pipeline Texas occurred fourth improve our business and The presence to quarter to two during year. in our largest the new several in XX%. of of dates and commodity our sold segment prices. the Demand year. was the part due Gross terms Permian bidding in higher solid we announced a customer in this segment our Basin. project increased Services saltwater a that history, Pipeline margins XXXX that expected with is to rain been in XX%, region award as that in projects We delays of this PPS otherwise with increased the Gross began as the of began awarded. shale quarter XX%. completion we've work Water backlog increased recently has driven & increases continue facilities of to Revenues increased our activity The with contract for the in projects. the the in in on have the These partially efforts. increased attractive fact
quarter first made this to acquisitions Energy the in sponsor, purchases Both Holdings, us services the clients. we second expand since to these These require of breadth quarter integrity the businesses were of pipeline repositioning believe Partnership, bringing allow them Our XXXX We the will with Cypress when some completed of partnership. offering XXXX. acquisitions into asset two that we've transactions our our the intention the offer the appropriate. and of third before depth are
has including Process including intends pumping, certain new would as into in chemical developmental water for and converted a lines goals, business before accomplished of sponsor service of work move with offer several high-resolution otherwise and equipment in-line this on inspection made next-generation can goal ILI, Pipeline both into Our or partnership not partnership energy in known line flushing, acquisitions offering be related PPS technology PPS companies, nitrogen business services solid cleaning, acquisitions once us other treatment, XXXX, rental including early dehydration. & services which sooner. to to These progress if various the to them it is and likely most
us also we've allows Our serve the of which Lafayette part served and country us our the all positions with and facility southeastern never to regional inspection expand into the to market integrity better services. of before, new offshore
the increasing smart deal pipelines otherwise against transfer tool Our industry's new inspection ILI capable known of capital magnetic and in aging throughout this to crude invest replacement. importantly borderlines global attractive technology, MFL, municipal and remain business that will drive and first and deliver are invested. flux in margins continue substantial also of the detection, this returns water expand the we serving fourth high-definition leakage believe demand technology as decline maintenance, us and partnership on talent, most country repair of the that of old transport need the of the we in also pigging lines drinking our resume acquisition of very by the and water our In to capabilities businesses number to Most quarter growth, segments, solid. eventually are is our country all ILI organic used supply customers world. for positioned outlook these most a serve, and we the oil The prices in water dynamics in-line a Despite 'XX, of distributions. increase
be a solid has modest times leverage by long-term a these attractive potential water services. we of net offerings. to that aging well two opportunities, adjusted remain Integrity services. in qualifying believe also and The exactly leader excited happened, the not enhance debt. also North sheet given this of water apologized Cypress the required municipal but industry our for and growth MLP a few dropdown We inspection [X:XX:XX.X] our We And the winning construction customers our organic energy with have municipal that as taxes for income sure Inspection go we growth. balance ahead and to not repeat We industry to pay I'm to We infrastructure EBITDA with and the what in grow X.X growth. attractive our deliver to will now activities. industry essential have very comments, ILI we opportunities dropped services Difficulty] requires and we services I'll and strategic on eligible remain not large the America serve opportunity off. confident North service are as where provide are a required midstream essential [Technical is strategy these America long-term industry, breadth we poised depth continue knowing in have with additional We the to new
acquisitions Cypress to into to the offering intention appropriate. this allow to repositioning of transactions purchases Holdings X require completed expand before partnership. the believe we were Both of the our them and the partnership the in integrity third quarter breadth 'XX will that offer Energy clients. us We asset the Our bringing some these pipeline services when businesses depth sponsors with
of to in sooner. this acquisitions move various both the them is certain XXXX, goal made water the and most equipment into not services related intends us treatment, including service early business it a has sponsor PPS inspection other on These technology, chemical services once solid accomplished Our of nitrogen be pumping, would next-generation goals, developmental several flushing to with cleaning, progress new and including process high-resolution in-line into work, pipeline rental, likely converted to if offer acquisitions lines partnership which dehydration. and can
us facility regional serve our better will and all services. of in the with market country of the offshore new Southeastern allow inspection to expand part integrity the position Lafayette and to us Our into
of our should water. increasing maintenance, we invest also expand and deal resume borderlines will this in all organic we that by continue business to first very capable magnetic for partnership in technologies growth, of in the pipelines to Most need the replacement. the position also industry's our talent, believe this is number ILI country also people segments, Our outlook crude capabilities substantial the eventually distributions. municipal ILI in Despite drive and In serve, flux as is and a are drinking and the acquisition refer quarter some us the serving to capital leakage of and The prices increase margins, 'XX, invested. old most world these repair and the new importantly fourth attractive remain stand dynamics global for high-definition businesses supply in-line detection, water smart used demand solid. transport of customers deliver MFL, inspection, of aging the of we returns technology, in of our on decline tool water pigging, oil MFL to lines
municipal net strategy deleveraging, as confident have to services is in integrity a our believe given sheet in MFL now attractive enhance of North additional winning the organic I'm service construction remain requires strategic solid and We customers of offerings. have growth growth. essential with by the as our We remain in we American tool. to poised our long-term attractive with services. debt, our opportunities growth. excited Cypress for industry these inspection continue modest balance energy a times to North with breadth With very dropdown large a grow deliver opportunity the essential and that also the to America long-term also industry water our the midstream provides leader has two depth We approximately infrastructure and leverage well a X.X serve have new opportunities, aging industry and required we to this potential that and our
XX% will various that are income on Today, future the state services attractive there inspection less not also qualifying integrity be very services The prices. is tax not to we're already competition correlated It's represent is by pay to still of this required over continue market. margins laws. Although in partnership mandated and this and are commodity and our to and these pipeline on focused federal this continue partnership Management these ownership our of upon XX% with Herbers, revenue. so and turn Jeff which conversion given over At XX% common of is the our insiders and the would that approximately where fully units financial some aligned he time, like the in preferred to additional the highlights. call of ownership industry. common CFO, share minority to our to unitholders our I be activities, can
Pete. you, Thank
over of in investors non-GAAP our financial million, prior the mentioned of or XX% metrics XX.X information Revenues Revenues enhances increase performance. understanding an same an Richard we million financial we release. non-GAAP to These reconciled period financial our will year increase that the were fourth last were year. also the remarks XX.X XX% XXX to our talk in press As in million year. this XX.X the or quarter metrics will for over our information GAAP GAAP million, about addition that are include of morning, financial the believe
compared XX%. EBITDA totaled was this support X.X X.X for income Exclusive Of net nearly to increased or of million period compared million was in XX% quarter fourth Net EBITDA attributable partners XX% to the over the X.X million in the million, XXXX, XXXX our in partners, much. was Adjusted increase support, of included increase in fourth of our year. XXXX, of net our our included XX% million the X.X to million XXXX, X attributable the period this to to million and million, Our by sponsor prior in Net of prior our the X.X same for included the adjusted The or subsidiary additional EBITDA Adjusted our XXXX compared XX.X net consideration. to of of Adjusted million to the Difficulty] hydrostatic prior this preferred partners of attributable [X:XX:XX.X] our increase compared of you partners XXXX, of interest sponsor attributable million, of an for X.X year XX.X in million period XX%. income of fourth XXXX. the XX.X million, XXXX compared fourth quarter in an unitholders limited X.X of fourth the an the an for [Technical XXXX Adjusted attributable year, thank the to to of X.X support. Exclusive support. over was to income year, fourth million of for increased increase for XXXX. of XX in amount fourth was the same to XX%. million that in in X.X XXXX of our limited income, million support X.X quarter the X to Adjusted XXXX EBITDA common attributable million compared X.X XXXX, X.X million the to sponsor the X.X the for to XX% compared although X.X year In X.X income attributable increase Great million of to EBITDA unitholders our no quarter attributable of of quarter unitholders common for for XX%. EBITDA million the XX.X EBITDA XXXX XXXX same XX.X unitholder. sponsor income in quarter limited million, was quarter million year or testing year an our adjusted limited to the increase attributable year of very was the EBITDA was an own XXX%. to million million, non-controlling common EBITDA owners was Adjusted us provided increase XXXX an XXXX. sponsor of XXXX, net
distributable X.X the XXXX. of compared XXXX flow flow of XX.X fourth XX%. flow of X.X the line. the X.X flow sponsor distributable back Exclusive XX% fourth million, X.X million this flow to from benefited support. quarter million, for by cash support, period XXXX quarter distributable of cash are fourth was the in included on same million, the cash cash cash million XXXX cash million We for fourth Distributable in or XXXX Exclusive was in sponsor of the million quarter increased flow to to Distributable of compared the sponsor flow support of quarter million XX or The for XXXX compared of of support. an of full-year cash distributable X.X XXX%. X.X of XXXX, increase distributable XXXX the increased in
would debt The X.X times. adjusted note In equivalents addition cash EBITDA. under credit XXXX of million of X.X XX.X less a and cash ratio decreased debt net of month calculated financial at I times at XX, million XX.X calculated four our to net XX, trailing XX% December these facility compared XXXX. a XXXX highlights, to December December from times ratio million as was at maximum that XXX.X debt leverage XX debt long-term XX, or was net The also as
our XXXX outstanding on the U.S. compared which was outstanding sheet coverage to average times, to inspectors X sent in quarter field the quarter an higher cash of December XXXX, the In XX.X times. per the XXXX. interest credit Inspection of May. of had we minimum was December fourth Segment, or We at XX, of is fourth ratio quarter increase on fourth X,XXX ratio million an week XX.X Our fourth our amount of headcount our operations the XX.X fourth the facility which year. at quarter to of Overall, the had in for credit over refinanced prior XX% borrowings million was XXXX. million compared our XXXX XX.X of XXXX, the quarter a in of facility of X,XXX million XX, yielded of the XXXX, in when revenues We than we of XX% Pipeline that balance our same initially of X.X in
decrease increase increase during in an the X.X gross million average process barrels XX%. and compared an full of to million in the disposed of million fourth for quarter was fourth The quarter barrel, XX million XXXX fourth to X.X XX%. connected XXXX, increase XXXX, our to pipelines partially of of per revenues barrel. the of the occurred in margins million the X.X Our of to saltwater we to $X.XX fourth the generated at that barrels margin quarter X.X year constructed an of XXXX. Gross million quarter two increase quarter of XX%, facilities. million X.X average saltwater new our of XXXX fourth in in pipeline in X.X despite million million during per during compared two million volumes million XXXX of of of in XXXX, The Segment, to segment Revenues during Texas Services In an or X.X at during volume compared the one facilities revenue increased our by quarter was of fourth saltwater from Water a to XXXX, were XXXX, we X sales revenue the in attributable XXXX X.X $X.XX million services disposal during compared XXXX. X.X XXXX January X.X of of in
capital and XX of EBITDA into development. in under XXXX margin quarter of is and higher from The Dakota generated services segment previous water price The revenues increase facility percentage in nominal leading margin per to the prices. the with XX% pipeline, North increased our primarily gross maintenance potentially had expenditures. a the and XX% others oil pipelines new of barrel Our XX% year. due fourth revenue an increases We
and came water water water increase, activities our we Should fourth leverage represented of increase. cost our total volume. disposed improve completion an XX% operating excess water to significant anticipate we of the structure has average produced volume drilling maintenance have expect from of barrel incremental water and volume pipeline commodity of quarter, and prices expenditures XX% We stabilize, the as margin estimate minimal During with we total and current in contribution each that XX%. capital incremental our
requirement. fourth other were key model facilities maintenance for XXXX. virtually in utilized consolidated at This expenditure capital portfolio X.X of our of first million, have remains disposal attractive saltwater capacities fourth basis, a XX% the were Our quarter business their On the have a all expenditures maintenance MLPs. approximately we limited the reflecting in that for us differentiator capital businesses quarter
the pipeline to expenditures our surface growing growth rebuilding equipment business. call I'll turn related examination non-destructive Our our With the primarily equipment back XXXX year Pete. cash purchases support which to for water over capital were of of facilities, of to sold the one in we subsequently our at the expansion, two that,
several hard improved Thanks optimistic as apologize difficult like years not and for not earlier, XXXX. fourth our I'm growth of inside very We're said something But and We operating team good. report technical proud for quarter look for I'm like their results occurred, I of dedication, the downturn, as the opportunities. both we full-year with of think difficulties. industry again Jeff. remain this organic you'd bad pleased during the work future on perseverance. to sure after what the happens news, the substantial the We that to a
Business growing to of ILI services along Houston-based directly will rentals, recently I've base expand VP nitrogen to report our me. hired our add services. that Development will two offshore a customer with that portfolio potential the dropdowns of to We our of acquisitions have new
Our significant to or our customers, available can be organic XX% of one biggest and our the more they and utilize potential than only less are serve we that opportunity services. growth of continue opportunities
continued and growth and greater excellent excluding with are proud remains support excluding result the results I operational investment Northern and associated XX%, pay sponsor we were support the interest of as time the Those with though partnership. and California we're PG&E of in our growth XXX%. customer revenue of XXXX your growth DCF the system. in important EBITDA wildfires in really joining of than work XX%, this unfortunate to a filing sponsor over of measures Our adjusted attention bankruptcy results. appreciate with valuable their an We them call of their electrical a continue your to
efficiently effectively Although, I'm safety to business, quarter results the we pleased fourth us and should for continue in growth, our strive will our to enable operational and which with excellence Operator, partnership profitable attractive we and on have trends and questions. take may grow some capital returns focus unitholder the now invested. that on disciplined being maintaining a long-term while our we value, to ensuring
any operator, again questions It doesn’t Thanks Okay, for this long. time your you. thank appear we've got morning. so everybody, that
gentlemen, do all conclude this and and you does your thank for today's Ladies participation. we conference
and that hope you disconnect now we your of enjoy may the You day. rest
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