Adjusted EBTIDA, which is a financial measure not presented in accordance with U.S. generally accepted accounting principles, is defined and reconciled to net income below.

“We are pleased to again deliver record revenue and Adjusted EBITDA in the first quarter of 2013,” said Anne-Marie Ainsworth, President and Chief Executive Officer of the Partnership’s general partner.  

“Our solid results were driven by significant increases in capacity, dock utilization and hydrocarbon movement at our facilities.  

Our terminals’ throughput volumes were approximately 80 million barrels of crude oil, refined products and liquefied petroleum gas during first quarter of 2013.  As our customers’ need for additional storage and handling services has continued to expand, we are successfully executing our organic growth plans to generate higher cash flow.”

“Our announced expansion plans will continue to drive strong revenue growth that is backed by long-term, fixed-fee contracts and will generate accretive distributable cash flow per unit for our unitholders.”

The Partnership’s overall operating income for the first quarter of 2013 improved 31.1% compared to the prior year period primarily due to higher storage and throughput volumes that generated increased service fees, partially offset by lower ancillary service revenues and higher selling, general and administrative expenses.

Revenues increased approximately $5.9 million, or 17.2%, to $40.2 million during the first quarter of 2013 compared to the same period in 2012, mainly due to higher storage and throughput fee revenues.

Storage service fee revenue grew $3.7 million due to new storage capacity placed into service in April 2012 and in the first quarter of 2013 and to an escalation in storage fees.

Throughput fee revenues grew by $3.6 million during the first quarter of 2013 attributable to revenues from the new pipelines placed into service in the first quarter of 2013 and to higher liquefied petroleum gas exports and revenue from the new arrangement with Enterprise Products Partners L.P. (“Enterprise”).

Ancillary services fee revenues decreased by $1.4 million during the quarter, largely attributable to a one-time pipeline-related construction project for a customer that was completed and recognized during the first quarter of 2012.

In Houston, during the first quarter of 2013, the Partnership placed into service 825,000 barrels of crude storage under long-term fixed-fee contracts and completed pipeline projects on-time and on-budget.

The final 275,000 barrel tank of this four tank expansion is in the final stages of construction and should be placed into service in the second quarter of 2013. 

In Beaumont, we placed into service two new refined products storage tanks with a total capacity of 325,000 barrels.

Based on our current plans, we expect to spend $135 million to $145 million on capital expenditures in 2013 as we continue construction on our previously announced growth projects.

The two crude storage expansion projects that we announced during 2012 are expected to add 3.2 million and 3.3 million barrels of new storage capacity by the end of 2013 and the end of 2014, respectively, bringing total capacity to over 25 million barrels by the end of 2014.

In addition, on March 6, 2013, we announced a new $44 million project and an expansion of our relationship with Enterprise with plans to increase our ability to import and export liquefied petroleum gas at our terminal on the Houston Ship Channel.

In connection with the new multi-year agreement with Enterprise, we are constructing a new vessel dock and adding infrastructure to existing docks with the capability of handling significantly more liquefied petroleum gas vessels at multiple docks.

“We are pleased with the progress at our Appelt property with 6.5 million barrels of storage capacity currently in varying stages of construction with the first tanks expected to come on-line during the third quarter of this year, providing for further growth in distributable cash flow,” continued Ainsworth.

“We are continuing to actively identify and evaluate additional expansion projects as well as alternate growth avenues that we believe will contribute to our EBITDA growth and position us to continue to increase distributable cash flow to our unitholders.

In addition to the organic crude oil logistics projects, we anticipate that the increased natural gas liquids production in the U.S. will drive more demand for the movement and export of liquefied petroleum gas from our facilities.”