BP Midstream Partners LP — Q1 2020 Earnings Presentation
21 slides from BP Midstream Partners LP's earnings presentation, May 8, 2020
Slide 1: bp midstream partners 1Q 2020 Financial results
bp midstream partners bp midstream partners 1Q 2020 Financial results May 8, 2020 Demonstrating resilience in a challenging environment bp midstream partners 1Q 2020 results 1
Slide 2: Brian Sullivan, Vice president, investor relations
Brian Sullivan Vice president, investor relations bp midstream partners 1Q 2020 results 2
Slide 3: Cautionary statement
Cautionary statement bp midstream partners FORWARD-LOOKING STATEMENTS This presentation includes various “forward looking statements” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical
Slide 4: Rip Zinsmeister, Chief executive officer
Rip Zinsmeister Chief executive officer bp midstream partners 1Q 2020 results 4
Slide 5: Agenda
bp midstream partners Resilience in a challenging environment Onshore portfolio with stability An advantaged offshore portfolio Strong liquidity position Agenda Results Operational results Financial results Adapting our 2020 guidance Q&A bp midstream partners 1Q 2020 results 5
Slide 6: Resilience in a challenging environment
Resilience in a challenging environment bp midstream partners Exceptional uncertainty in near-term industry outlook A portfolio with financial strength and resilience bp midstream partners 1Q 2020 results 6
Slide 7: Onshore portfolio with stability
Onshore portfolio with stability bp midstream partners Highly integrated with BP’s Whiting refinery – advantaged refinery 1 in US Midwest 2 Fee-based revenues with limited direct exposure to commodity price fluctuations 3 Majority of revenues generated from investment grade credit rating sponsor 4 T
Slide 8: An advantaged offshore portfolio
An advantaged offshore portfolio bp midstream partners Crude qualities highly desired by US Gulf 1 Coast refiners Shippers with extensive capabilities to 2 market & trade 3 Investment grade counterparties Production with low relative variable 4 operating costs 5 Forecast production growth underpinne
Slide 9: Craig Coburn, Chief financial officer
Craig Coburn Chief financial officer bp midstream partners 1Q 2020 results 9
Slide 10: Strong liquidity position
Strong liquidity position bp midstream partners Financial frame Liquidity position at end 1Q 2020 Strong financial position entering downturn Cash and cash equivalents of $105.5m Receivables of $10.8m − $10.4m with BP – investment grade counterparty Conservative financial framework Term loan and cre
Slide 11: Operational results
Operational results bp midstream partners Quarterly pipeline gross throughput1 Thousands, boed BP2 River rouge Diamondback Mars Ursa Caesar Cleopatra Proteus Endymion 1Q20 Highlights 2,000 Gross throughput broadly flat vs. 4Q19 1,722 1,729 1,557 Higher diluent volumes on Diamondback 1,500 Lowe
Slide 12: Financial results ($ million)
Financial results1 ($ million) bp midstream partners 1Q19 4Q19 1Q20 Revenue 30.2 35.0 30.7 Costs and expenses 10.2 10.8 11.1 Operating income 20.0 24.2 19.6 Income from equity method investments 24.4 33.4 31.3 Interest expense, net 3.7 3.8 3.4 Net income 40.7 53.8 47.5 Less: Net income attributable
Slide 13: Adapting our 2020 guidance
Adapting our 2020 guidance bp midstream partners Full year 2020 guidance 2Q20 guidance2 Factors impacting guidance Reflected in guidance − Reduced FLA revenues − Lower onshore asset throughput Slightly lower gross throughput − Reduced financing costs Adjusted EBITDA $190-200m − COVID-19 impacts acro
Slide 14: Rip Zinsmeister, Chief executive officer
Rip Zinsmeister Chief executive officer bp midstream partners 1Q 2020 results 14
Slide 15: Q&A
Q&A bp midstream partners Craig Coburn Rip Zinsmeister Brian Sullivan Chief financial officer Chief executive officer Vice president, investor relations bp midstream partners 1Q 2020 results 15
Slide 16: Supplementary information
bp midstream partners Supplementary information bp midstream partners 1Q 2020 results 16
Slide 17: Reconciliation of Adjusted EBITDA and CAFD to Net Income
Reconciliation of Adjusted EBITDA and CAFD to Net Income1 bp midstream partners ($ million) 1Q19 4Q19 1Q20 Net income 40.7 53.8 47.5 Add: Depreciation 0.6 0.7 0.7 Interest expense, net 3.7 3.8 3.4 Cash distributions received from equity method investments2 28.5 36.6 34.2 Less: Income from equity met
Slide 18: Reconciliation of Adjusted EBITDA and CAFD to Net Income (continued)
Reconciliation of Adjusted EBITDA and CAFD to Net bp midstream partners Income1 Continues from previous slide ($ million) 1Q19 4Q19 1Q20 Adjusted EBITDA attributable to the Partnership 44.5 54.2 47.8 Add: Net adjustments from volume deficiency agreements (0.7) 2.8 0.1 Maintenance capital recovery2 -
Slide 19: Reconciliation of Adjusted EBITDA and CAFD to Net Cash Provided by Operating Activities
Reconciliation of Adjusted EBITDA and CAFD to Net bp midstream partners Cash Provided by Operating Activities1 ($ million) 1Q19 4Q19 1Q20 Net cash provided by operating activities 37.0 47.1 48.9 Add: Interest expense, net 3.7 3.8 3.4 Distributions in excess of earnings from equity method investments
Slide 20: Reconciliation of Adjusted EBITDA and CAFD to Net Cash Provided by Operating Activities (continued)
Reconciliation of Adjusted EBITDA and CAFD to Net bp midstream partners Cash Provided by Operating Activities1 Continues from previous slide ($ million) 1Q19 4Q19 1Q20 Adjusted EBITDA attributable to the Partnership 44.5 54.2 47.8 Add: Net adjustments from volume deficiency agreements (0.7) 2.8 0.1
Slide 21: Gross Debt to annualized Adjusted EBITDA attributable to the Partnership
Gross Debt to annualized Adjusted EBITDA bp midstream partners attributable to the Partnership1 ($ million) 1Q19 4Q19 1Q20 Gross debt 468.0 468.0 468.0 Annualized Adjusted EBITDA attributable to the Partnership2 178.4 216.8 191.2 Gross Debt to annualized Adjusted EBITDA attributable to the partnersh
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