BP Midstream Partners LP, a spinoff company that owns the pipelines that bring oil to, and ship refined gasoline from, the BP Whiting Refinery, beat expectations with a $30.5 million profit in the second quarter.
The spinoff, which was launched last year, was expected to make $27 million during the second quarter. It pulled in $33.6 million in Earnings Before Interest, Taxes, Depreciation and Amortization in the second quarter after forecasting in its initial public offering it would only rake in $29.3 million.
BP Midstream Partners brought in $45.8 million in cash from operating activities and has $40.5 million in cash on hand. After the strong quarter, the company raised its guidance to $130 million to $135 million in cash for distribution this year, up from $126 million.
“Our second quarter operational and financial performance across the asset portfolio was strong, exceeding the IPO forecast for the same period," CEO Robert Zinsmeister said. "With continued growth in earnings and cash available for distribution, we increased the quarterly cash distribution by half a cent over the first quarter distribution, and one cent over the minimum quarterly distribution. This clearly demonstrates our commitment to delivering our differentiated investment proposition — to deliver unit holders consistent, top-tier distribution growth.”
The company's assets include the BP2 crude oil pipeline system that transports crude oil for BP from the Griffith Terminal to BP’s Whiting Refinery, the River Rogue refined pipeline system that sends petroleum products from the BP Whiting Refinery to Detroit, the Diamondback pipeline system that sends diluent from Black Oak Junction in Gary to Illinois, and pipelines in the Gulf of Mexico.