TransMontaigne Partners L.P. Expects No Direct Financial Impact from Proposed FERC Pipeline Policy Revisions
23 March 2018 - 2:49AM
Business Wire
The Federal Energy Regulatory Commission ("FERC") recently
announced proposed revisions to its 2005 Policy Statement for
Recovery of Income Tax Costs such that it will no longer allow
master limited partnerships to recover an income tax allowance in
their pipeline cost of service-based rates. In response to this
announcement, TransMontaigne Partners L.P. (NYSE:TLP) (the
"Partnership") confirms that it does not currently provide services
pursuant to FERC jurisdictional cost of service-based rates, and as
such, expects no direct financial impact from the FERC’s Policy
revisions.
The Partnership’s pipelines include the Razorback Pipeline,
which provides transportation services between Mount Vernon,
Missouri and Rogers, Arkansas and the Diamondback Pipeline, which
runs between Brownsville, Texas and the United States-Mexico
border. Together, these two pipelines constitute less than 3% of
our total 2017 revenue. Revenue from these assets is earned by
charging fees to contracted customers. Current fees for the
FERC-regulated Razorback and Diamondback Pipelines were established
via agreement with non-affiliated shippers, as opposed to
service-based rates.
About TransMontaigne Partners
L.P.
TransMontaigne Partners L.P. is a terminaling and transportation
company based in Denver, Colorado with operations in the United
States along the Gulf Coast, in the Midwest, in Houston and
Brownsville, Texas, along the Mississippi and Ohio Rivers, the
Southeast and the West Coast. We provide integrated terminaling,
storage, transportation and related services for customers engaged
in the distribution and marketing of light refined petroleum
products, heavy refined petroleum products, crude oil, chemicals,
fertilizers and other liquid products. Light refined products
include gasolines, diesel fuels, heating oil and jet fuels; heavy
refined products include residual fuel oils and asphalt. We do not
purchase or market products that we handle or transport. News and
additional information about TransMontaigne Partners L.P. is
available on our website: www.transmontaignepartners.com.
Forward-Looking
Statements
This press release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
These statements include, but are not limited to, statements with
respect to the FERC Policy's impact on expected financial results
and the FERC Policy's expected impact on the Partnership's
operations. Although the Partnership believes that the expectations
reflected in such forward-looking statements are based on
reasonable assumptions, such statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those projected. Additional important factors that could cause
actual results to differ materially from the Partnership’s
expectations and may adversely affect its business and results of
operations are disclosed in "Item 1A. Risk Factors" in the
Partnership’s Annual Report on Form 10-K for the year ended
December 31, 2017, filed with the Securities and Exchange
Commission on March 15, 2018. The Partnership undertakes no
obligation to publicly update or revise any forward-looking
statements except as required by law.
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TransMontaigne Partners L.P.Frederick W. Boutin,
303-626-8200Chief Executive OfficerorRobert T. Fuller,
303-626-8200Chief Financial Officer
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