Tallgrass Energy Partners, LP (TEGP) has reported a 42.30 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $60.73 million, or $0.45 a share in the quarter, compared with $42.68 million, or $0.50 a share for the same period last year.
Revenue during the quarter grew 10.10 percent to $152.12 million from $138.17 million in the previous year period. Gross margin for the quarter expanded 332 basis points over the previous year period to 69.21 percent. Total expenses were 57.54 percent of quarterly revenues, down from 61.70 percent for the same period last year. This has led to an improvement of 416 basis points in operating margin to 42.46 percent.
Operating income for the quarter was $64.60 million, compared with $52.92 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $123.82 million compared with $169.74 million in the prior year period.
“Tallgrass Energy delivered another excellent quarter underpinned by stable performance in our segments and a full quarter of a 25 percent interest in REX at TEP. All contributed to another consecutive increase in distributions at TEP and TEGP," said Tallgrass Energy president and chief executive officer David G. Dehaemers, Jr. "TEP's inaugural senior notes offering marks another milestone towards achieving an investment grade capital structure. Moving forward we look ahead to the in-service of REX's Capacity Enhancement Project. TEP is well-positioned to conclude an outstanding 2016 and to continue delivering top-tier distribution growth in 2017."
Operating cash flow improves significantly
Tallgrass Energy Partners, LP has generated cash of $305.92 million from operating activities during the nine month period, up 54.91 percent or $108.43 million, when compared with the last year period.
The company has spent $549.57 million cash to meet investing activities during the nine month period as against cash outgo of $769.77 million in the last year period.
Cash flow from financing activities was $242.46 million for the nine month period, down 58.91 percent or $347.67 million, when compared with the last year period.
Cash and cash equivalents stood at $0.42 million as on Sep. 30, 2016, down 97.77 percent or $18.29 million from $18.70 million on Sep. 30, 2015.
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