Cypress Energy Partners, L.P. Announces Timing of First Quarter Earnings Release and Conference Call and Recent Actions Taken
Cypress Energy Partners, L.P. (NYSE: CELP) today reported it will host an earnings call on Monday, May 16, 2016, at 11:00am EDT (10:00am CDT) to discuss its first quarter 2016 financial results. Analysts, investors, and other interested parties may access the conference call by dialing Toll-Free (US & Canada): (888) 390-3983 or International Dial-In (Toll): (862) 255-5354. An archived audio replay of the call will be available on the investor section of our website at www.cypressenergy.com beginning at 10:00am EDT (9:00am CDT) on May 18, 2016.
CELP also announced several other actions taken to right-size our cost structure that total approximately $5 million in annual cost savings, which should protect liquidity and distributions during this downturn:
- In the Water & Environmental Services segment, we temporarily shut-in one facility and have reduced hours of operations and staffing at several other facilities. We are also investing in some automation technology that may lead to additional cost reductions.
- In the Pipeline Inspection Services segment, we modified our G&A cost structure to more efficiently execute our current volume of business while maintaining capacity to grow.
- In the Integrity Services segment, we consolidated our Texas operations to reduce both duplication and our cost structure in response to the material slow-down in offshore hydro-testing work.
These actions are complete and the annual cost savings will commence immediately in the second quarter and carry through future periods. We expect to enjoy over 60% of these benefits for the balance of 2016 and the full year benefit of these cost reductions in 2017.
Our sponsor, Cypress Energy Holdings, LLC (“CEH”), and its affiliates are aligned with our common unitholders, with an approximate 65% ownership interest in CELP. As a result of this alignment, CEH has stepped forward in support of the unitholders with temporary relief of the administrative fee paid to CEH pursuant to the Omnibus Agreement, which would have charged $1.0 million to CELP in the first quarter. This temporary relief will likely continue until the end of 2016 or such earlier time that our business results improve, as determined by CEH.
This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While CELP believes its expectations as reflected in the forward-looking statements are reasonable, CELP can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in CELP’s Annual Report filed on Form 10-K and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” CELP undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.
About Cypress Energy Partners, L.P.
Cypress Energy Partners, L.P. is a growth-oriented master limited partnership that provides midstream services including pipeline inspection, integrity and hydrostatic testing services to energy, public utility companies, E&P, and midstream companies and their vendors throughout the U.S. and Canada. Cypress also provides saltwater disposal and other water and environmental services to U.S. energy E&P companies and their vendors in North Dakota in the Williston Basin, and West Texas in the Permian Basin. In all three of these business segments, Cypress works closely with its customers to help them comply with increasingly complex and strict environmental and safety rules and regulations and reduce their operating costs. Cypress is headquartered in Tulsa, Oklahoma.
Cypress Energy Partners, L.P.
Les Austin, 918-748-3907
Chief Financial Officer