TransMontaigne, now a part of ArcLight Capital Partners, is planning terminal expansion in Mississippi.

Consolidated EBITDA for the quarter ended Dec. 31, 2015 was $23.4 million, compared to $18.3 million for the quarter ended Dec. 31, 2014.

Operating income for the quarter ended Dec. 31, 2015 was $13.1 million compared to $7.9 million for the quarter ended Dec. 31, 2014.

Revenue was $40.3 million compared to $36.9 million due to increases in revenue at the Gulf Coast, River and Southeast terminals of approximately $3.4 million, $0.4 million and $0.4 million, respectively, offset by decreases in revenue at the Midwest and Brownsville terminals of approximately $0.2 million and $0.6 million, respectively.

Direct operating costs and expenses were $16.6 million compared to $17.9 million due to decreases in direct operating costs and expenses at the Midwest, Brownsville, River and Southeast terminals of approximately $0.2 million, $1.1 million, $0.5 million and $0.1 million, respectively, offset by an increase in direct operating costs and expenses at the Gulf Coast terminals of approximately $0.6 million.

Quarterly net earnings for the quarter ended Dec. 31, 2015 were $11.7 million compared to $5.9 million for the quarter ended Dec. 31, 2014, principally due to the changes in quarterly operating income discussed above and a decrease in interest expense of approximately $0.5 million.

TransMontaigne’s investments in unconsolidated affiliates include a 42.5% interest in BOSTCO and a 50% interest in Frontera. BOSTCO is a newly constructed terminal facility located on the Houston Ship Channel.

BOSTCO began initial commercial operations in the fourth quarter of 2013, with the completion of its approximately 7.1 million bbl of storage capacity and related infrastructure occurring at the end of the third quarter of 2014.

Frontera is a terminal facility located in Brownsville, Texas, that encompasses approximately 1.5 million bbl of light petroleum product storage capacity, as well as related ancillary facilities.

Effective Feb. 1, 2016, NGL Energy Partners consummated the sale of its indirect 100% ownership interest in TransMontaigne to an affiliate of ArcLight Energy Partners for $350 million in cash.

In connection with the consummation of this transaction, TransMontaigne’s Southeast terminaling services agreement with NGL was amended to extend the term of the agreement through July 31, 2040 at the prevailing contract rates contained within the agreement.

Subsequent to Jan. 31, 2023, NGL has the ability to terminate the agreement at any time upon at least 24 months’ prior notice of its intent to terminate the agreement.
 
TransMontaigne is planning to expand its Collins/Purvis, Miss.,. bulk storage terminal. With a current active storage capacity of approximately 3.4 million bbl, it is the only independent terminal capable of receiving from, delivering to, and transferring refined petroleum products between the Colonial and Plantation pipeline systems.

In October 2015, TransMontaigne entered into a six-year terminaling services agreement with NGL for about 1.2 million bbl of new product storage capacity and about 0.1 million bbl of existing storage capacity. The terminaling services agreement with NGL was effective Jan. 1, 2016 with the majority of the contract revenue to come on line upon completion of the construction of the new tank capacity.

In the first quarter of 2016, TransMontaigne entered into five-year terminaling services agreements with various third parties for approximately 0.8 million bbl of new product storage capacity. The term of the terminaling services agreements will commence upon construction of the new tank capacity.

The above additional capacity brings the total new tank capacity currently under construction at its Collins/Purvis facility to approximately 2 million bbl, at an expected cost of approximately $75 million.

The completion of the construction of the new tank capacity, which is commensurate with the associated new contract revenue coming on line, is expected to occur during the fourth quarter of 2016 through the second quarter of 2017.

In addition, during 2015 TransMontaigne purchased land adjacent to its Collins/Purvis facility and has begun the process of permitting at least 3 million bbl of additional capacity. It is in discussions with potential customers for this future capacity.

Effective Jan. 28, 2016, TransMontaigne Partners acquired from TransMontaigne LLC its Port Everglades, Fla., hydrant system for a cash payment of $12 million. The hydrant system encompasses a system of pipelines that connect the Port’s ship berths to its Port Everglades North terminal. It is the only pipeline system in Port Everglades for fueling cruise ships, and it is currently under contract with one of its existing terminal customers for approximately three more years.