“We had an excellent 2018 year with strong growth and we are off to a great start in 2019.” Peter Boylan, CEO at Cypress Energy.
Cypress Energy Partners, L.P. in Tulsa reported first quarter 2019 revenues totaled $90.4 million, an increase of 39 percent over the previous year.
The company’s net income was $1.4 million which was 44 percent over the prior year. Adjusted EBITDA came to $4.5 million which was a 58 percent increase over a year earlier. It resulted in a cash distribution of 21 cents per unit, consistent with the last eight quarters.
Peter C. Boylan III, CELP’s Chairman and Chief Executive Officer, stated, “We posted a great first quarter with strong revenue growth driven by Tulsa Inspection Resources (“TIR”), our Pipeline Inspection segment. During the fourth quarter of 2018, we began work on the largest contract in the 15-year history of TIR.”
He anticipates “very strong results” in the second quarter of the year.
“Revenues of our Pipeline Inspection segment grew from $58.0 million in the first quarter of 2018 to $86.2 million in the first quarter of 2019, an increase of 49%. This increase was due to growing demand for our services and increased business development efforts,” said Boylan.
The company revenues from the pipeline and process segment dropped in the first quarter primarily because of adverse weather which delayed several large projects. Boylan said it has resulted in the largest project backlog in the segment’s history.
“We had an excellent 2018 year with strong growth and we are off to a great start in 2019. The long-term increasing demand for pipeline inspection, integrity services, and water solutions remains strong due to our nation’s aging pipeline infrastructure as well as growing production, and we believe we are well-positioned to capitalize on the opportunities that improving market conditions will create,” he said.
Here is how the company described its activities.
- Deployed an average of 1,432 inspectors per week for the first quarter of 2019, compared to 1,030 in the first quarter of 2018, an increase of 39%.
- Disposed of 2.8 million barrels of saltwater during the first quarter of 2019 at an average revenue per barrel of $0.77, compared to the disposal of 3.1 million barrels at an average revenue per barrel of $0.82 in the first quarter of 2018, a decrease in volume of 8%.
- Maintenance capital expenditures for the first quarter of 2019 and 2018 were $0.1 million, reflecting the minimal maintenance capital expenditures necessary for the operations of its businesses.
- Expansion capital expenditures during the three months ended March 31, 2019 were $0.3 million. The expansion capital expenditures included the purchase of new equipment to support inspection and integrity business.