The EBITDA for JP Energy’s crude oil storage suffered a decline as a result of continued low crude oil prices which have been driving a decrease in production volumes.
The company reported adjusted EBITDA for its reorganised crude oil pipelines and storage segment as $23.1 million for the year ended December 31, 2015 compared to $25.3 million the previous year.
The decrease was due to reduced margins as a result of declining production volumes. Additionally, the low crude prices are creating more competition for crude purchases, partially offset by higher crude oil sales volumes and throughput due to expansions of the Silver Dollar Pipeline System throughout 2015.
The refined products terminals and storage segment saw a slight increase in its year end adjusted EBITDA financials. In 2015 it was recorded at $10.9 million compared to $10.7 million in 2014.
This was attributed to an increase in refined products sales volumes due to the addition of butane blending capabilities at its North Little Rock terminal in the second quarter of 2015 and lower operating expenses.
J Patrick Barley, executive chairman, president and CEO of JP Energy says: ‘I am proud of the accomplishments our team was able to achieve in 2015 despite significant headwinds that we and the industry continue to face.
‘During the year, we increased our Silver Dollar crude oil storage capacity by 250%, completed a strategic interconnection and extension of our Silver Dollar pipeline in the Midland Basin, completed a strategic propane acquisition and sold certain non-core crude oil assets in the Mid-Continent.’