Benefits to hold this: Shell Midstream Partners, L.P.’s (NYSE:SHLX)

On 28 August 2k19, Shell Midstream Partners, L.P.’s (NYSE:SHLX) stock showed the gain by 1.26% during the normal trading session on Wednesday and reaching a 52-week high of -16.77% during the day while it closed the day at $19.35. The stock last traded volume of 1.5 million shares was above it’s an average volume of 0.68 million shares.

Shell Midstream Partners, L.P. (SHLX) stated net income attributable to the joint venture of $115M for the second quarter of 2k19, which equated to $0.38 per ordinary limited partner unit. Shell Midstream Partners also generated adjusted earnings before interest, income taxes, depreciation and amortization attributable to the joint venture of $187M.

FINANCIAL HIGHLIGHTS

  • Net income attributable to the joint venture was $115M, contrast to $132M for the previous quarter.
  • Net cash provided by operating activities was $133M, contrast to $150M for the previous quarter.
  • Cash accessible for distribution was $162M, contrast to $140M for the previous quarter, largely driven by increased distributions related to the Colonial and Explorer acquisition, which were partially offset by lower Zydeco revenues.
  • Total cash distribution reported was $131M, resulting in a coverage ratio of 1.2x.
  • Adjusted EBITDA attributable to the joint venture was $187M, contrast to $170M for the previous quarter.
  • As of June 30, 2k19, the Joint Venture had $257M of consolidated cash and cash equivalents on hand.
  • As of June 30, 2k19, the Joint Venture had total debt of $2.7B, equating to 3.6x Debt to annualized Q2 2k19 Adjusted EBITDA. Current debt levels are well within our targeted range and provide full flexibility to continue to grow in line with guidance.

ASSET HIGHLIGHTS

Important Onshore Pipeline Transportation:

  • Zydeco – Mainline volumes were 635 kbpd in the current quarter, contrast to 628 kbpd in the previous quarter. The increase in volumes was related to increased offshore volumes, partially offset by volumes related to a contract which expired in the second quarter of 2k19.

Important Offshore Pipeline Transportation:

  • Amberjack – Volumes were 359 kbpd in the current quarter, contrast to 362 kbpd in the previous quarter. Lower volume related to an eight day planned producer turnabout. Continued growth is predictable on the pipeline as new production ramps up.
  • Mars – Volumes were 569 kbpd contrast to 556 kbpd in the previous quarter. The higher volumes were related to growth on Ursa, partially offset by planned producer turnabouts.
  • Auger – Volumes were 78 kbpd, lower than the previous quarter of 86 kbpd. We received $3M in the second quarter of 2k19 for business interruption recoveries associated with outages in 2k18.
  • Eastern Corridor – Volumes were 433 kbpd contrast to 470 kbpd in the previous quarter, largely Because of planned producer turnabouts.

The Corporation has PEG ratio of 1.11 and price to cash ratio of 18.59. Net profit margin of the firm was recorded at 73.70% and operating profit margin was calculated at 48.10% while gross profit margin was measured as 92.70%. Beta factor, which measures the riskiness of the security, was registered at 1.05.

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