Cypress Energy Partners will pay out a cash distribution for the fourth quarter of 2015. The Tulsa company’s board of directors approved the distribution of .406413 per limited partner unit which is unchanged from the previous quarter. It is a 4.88 percent increase over the company’s target minimum quarterly cash distribution.
“We were pleased to announce that our fourth quarter 2015 cash distribution remains unchanged despite the significant pressure in the energy markets in general and the MLP (midstream limited partnerships) market specifically. CELP’s (Cypress Energy Partners) low capital expenditure business model is not typical of the industry, and consequently we do not have the internal competition between funding infrastructure build-outs versus making quarterly cash distributions with which many other MLPs must contend,” said Cypress Energy Partners President and Chief Executive Officers Peter C. Boylan III.
He has confidence the Cypress will be able to make it through the lower price environment.
“We also have ample liquidity with our credit facility and approximately $24 million of cash at December 31, 2015. Additionally, the subordinated nature of approximately 50 percent of our units protects common unitholders who have the right to first receive available cash up to the minimum quarterly distribution before subordinated unitholders would receive any cash distribution. Our general partner and its affiliates are aligned with our common unit holders, with an approximate 65 percent ownership in CELP, and have the ability to support or protect the distribution coverage ratio.”
The quarterly distribution will be paid to unitholders of record on February 5, 2016, on February 12.
