Oiltanking Partners, L.P.

CIK:0001516007|SEC Filings

Earnings Per Limited Partner Unit

9 Months Ended

Sep. 30, 2014

The following table sets forth the computation of basic and diluted earnings per limited partner unit for the periods indicated (amounts in thousands, except per unit data):



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013

Net income	$	36,454	$	32,883	$	111,961	$	82,551

Less: General partner’s incentive distribution earned (1)	7,850		6,755		24,826		12,822
Less: General partner’s 2.0% ownership interest	729		658		2,239		1,651
Net income allocated to limited partners	$	27,875	$	25,470	$	84,896	$	68,078

Numerator for basic and diluted earnings per limited partner unit:
Allocation of net income among limited partner interests:
Net income allocable to common units	$	14,831	$	12,735	$	45,128	$	34,039
Net income allocable to subordinated units	13,044		12,735		39,768		34,039
Net income allocated to limited partners	$	27,875	$	25,470	$	84,896	$	68,078

Denominator:
Basic and diluted weighted average number of limited partner units outstanding:
Common units	44,211		38,900		44,137		38,900
Subordinated units	38,900		38,900		38,900		38,900

Basic and diluted net income per limited partner unit:
Common units	$	0.34	$	0.33	$	1.02	$	0.88
Subordinated units	$	0.34	$	0.33	$	1.02	$	0.88

____________

(1)

Based on the amount of net income for the three and nine months ended September 30, 2014 and 2013, our general partner was allocated income associated with its IDRs. Under the two-class method, because our partnership agreement does not limit distributions to our general partner with respect to IDRs to available cash, we allocate undistributed earnings to our general partner utilizing the distribution waterfall for available cash specified in our partnership agreement. Cash payments made to our general partner and limited partners are determined in relation to actual distributions declared rather than the net income allocations used in the calculation of earnings per unit.

Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2014

Supplemental Cash Flow Elements [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flows and non-cash transactions were as follows for the periods indicated (in thousands):



	Nine Months Ended
	September 30,
	2014		2013

Cash paid for interest of $5,565 and $4,685 (net of capitalized interest)	$	795	$	3,040
Cash taxes paid	923		943
Interest costs capitalized	4,770		1,645

Non-cash transactions:
Change in accounts payable related to capital expenditures	$	17,970	$	10,908

Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 21,558	$ 17,332
Receivables:
Trade	32,405	18,013
Affiliates	1,001	127
Other	2,864	613
Notes receivable, affiliate	0	100,000
Prepaid expenses and other	5,177	1,502
Total current assets	63,005	137,587
Property, plant and equipment, net	787,578	585,826
Intangible assets	3,739	3,739
Other assets, net	4,247	1,822
Total assets	858,569	728,974
Current liabilities:
Accounts payable and accrued liabilities	79,658	38,104
Current maturities of long-term debt, affiliate	2,500	2,500
Accounts payable, affiliates	2,673	4,264
Total current liabilities	84,831	44,868
Long-term debt, affiliate, less current maturities	223,250	188,300
Deferred revenue	10,321	2,159
Total liabilities	318,402	235,327
Commitments and contingencies
Partners’ capital:
Common units (44,228,692 and 44,099,802 units issued and outstanding at September 30, 2014 and December 31, 2013, respectively)	432,022	418,435
Subordinated units (38,899,802 units issued and outstanding at September 30, 2014 and December 31, 2013)	61,496	50,611
General partner’s interest	46,649	24,601
Total partners’ capital	540,167	493,647
Total liabilities and partners’ capital	$ 858,569	$ 728,974