Tulsa’s Cypress Energy Partners, L.P. reported third quarter 2018 revenues of $84.8 million or a 9% increase compared to a year ago. It also represented a jump of 11% over the second quarter of this year proving the saltwater disposal business has been good this year.
The increased revenues resulted in a 21 cent a unit cash distribution which was consistent with the company’s last six quarters.
Net income grew for $0.6 million in the third quarter of 2017 to $5 million for the 2018 third quarter. It was also more than the $3.6 million net income reported at the end of the second quarter of this year.
For the year, the company’s revenue totaled $226.1 million, or 4% higher than the previous year. Cypress management indicated the growth was due to increased customer activity in each of the business segments, despite the sale this year of the two saltwater disposal operations in Texas and a reduction in the Canadian operations.
Peter C. Boylan III, Cypress Energy Partners, L.P.’s (“CELP” or the “Partnership”) Chairman and Chief Executive Officer stated, “I am very pleased with our strong, organic operating results during the quarter across all three of our reporting segments. During the quarter we generated a gross margin of $12.9 million, representing a 15% gross margin and a 37% increase over the same period last year, reflecting our solid improvement in focusing on higher margin opportunities. ”
Adjusted earnings for the year were up 38% over the same period in 2017.
The company stated its Water Serves segment disposed of 4.3 million barrels of saltwater at an average revenue per barrel of 78 cents for the third quarter. That’s more than the 3.1 million barrels and 68 cents-a-barrel revenue for the third quarter of last year. Why the growth and increased revenue? The company said it reflects the divestiture of two saltwater disposal operations in the Permian Basin, two new pipelines in the Bakken and the reopening of a saltwater disposal facility that had been struck by lightning in 2017.
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