|CSI Compressco LP Announces Fourth Quarter And Full Year 2016 Results|
Consolidated revenues for the quarter ended
Unaudited results of operations for the three month period ended
"As of December, 31, 2016, 851,733 horsepower of our compression services fleet was generating revenue, with fleet utilization increased by 1.2% compared to prior quarter and the first quarterly increase in utilized horsepower since the first quarter of 2015. Fourth quarter 2016 compression services results included a
"As we enter 2017 seeing what we believe are early signs of recovery throughout the oil and gas industry, we will continue with a conservative approach to capital spending, continuing our efforts to maximize the utilization of existing assets and searching for opportunities to capture appropriate financial return on new investments. Our 2017 business plan calls for
Fourth Quarter 2016 Cash Distribution on Common Units
CSI Compressco Overview
Forward Looking Statements
This press release contains "forward-looking statements" and information based on our beliefs and those of our general partner,
Reconciliation of Non-GAAP Financial Measures
The Partnership includes in this release the non-GAAP financial measures Adjusted EBITDA, distributable cash flow, distribution coverage ratio, and free cash flow. Adjusted EBITDA is used as a supplemental financial measure by the Partnership's management to:
The Partnership defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, and before certain non-cash charges consisting of impairments, bad debt expense attributable to bankruptcy of customer, non-cash costs of compressors sold, equity compensation, fair value adjustments of our Preferred Units, gain on extinguishment of debt, administrative expenses under the Omnibus Agreement paid in equity using common units and excluding acquisition and transaction costs, and severance expense.
Distributable cash flow is used as a supplemental financial measure by the Partnership's management as it provides important information relating to the relationship between our financial operating performance and our cash distribution capability. Additionally, the Partnership uses distributable cash flow in setting forward expectations and in communications with the board of directors of our general partner. The Partnership defines distributable cash flow as Adjusted EBITDA less current income tax expense, maintenance capital expenditures, interest expense, and severance expense, plus non-cash interest expense.
The Partnership believes that the distribution coverage ratio provides important information relating to the relationship between the Partnership's financial operating performance and its cash distribution capability. The Partnership defines the distribution coverage ratio as the ratio of distributable cash flow to the total quarterly distribution payable, which includes, as applicable, distributions payable on all outstanding common units, the general partner interest, and the general partner's incentive distribution rights.
The Partnership defines free cash flow as net cash provided by operating activities less capital expenditures, net of sales proceeds. Management primarily uses this metric to assess our ability to retire debt, evaluate our capacity to further invest and grow, and measure our performance as compared to our peer group of companies.
These non-GAAP financial measures should not be considered an alternative to net income, operating income, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. These non-GAAP financial measures may not be comparable to Adjusted EBITDA, distributable cash flow, free cash flow or other similarly titled measures of other entities, as other entities may not calculate these non-GAAP financial measures in the same manner as
The following table reconciles net income (loss) to Adjusted EBITDA, distributable cash flow and distribution coverage ratio for the three month periods ended
The following table reconciles cash from operations to free cash flow for the three month periods ended
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/csi-compressco-lp-announces-fourth-quarter-and-full-year-2016-results-300414612.html
CSI Compressco LP, The Woodlands, Texas, Derek Coffie, Chief Financial Officer, Phone: 281-364-2244, Fax: 281-364-4398, www.csicompressco.com