TULSA, Okla–(BUSINESS WIRE)–#celp–Cypress Energy Partners, L.P. (NYSE: CELP) announced today that the board of directors of its general partner declared a cash distribution for the fourth quarter of 2016. The cash distribution is $0.406413 per limited partner unit. This amount remains unchanged from the third quarter of 2016 and reflects a 4.88% increase over the target minimum quarterly cash distribution of $0.3875. The distribution will be payable on February 13, 2017 to all unitholders of record on February 6, 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 continued to support 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 this quarter.
CELP also announced today that the board of directors of its general partner has confirmed that, upon payment of the Partnership’s fourth quarter 2016 distribution, the financial tests under the Partnership’s partnership agreement required for the conversion of all its outstanding subordinated units into common units will have been satisfied. Accordingly, the Partnership’s 5,913,000 subordinated units will be converted on a one-for-one basis into common units on the first business day following the payment of the Partnership’s fourth quarter 2016 distribution to unitholders. Upon conversion, the Partnership will have an estimated 11,868,186 common units outstanding.
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, E&P, public utility companies 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.
This release is a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100% of Cypress Energy Partners L.P.’s distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Therefore, distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Cypress Energy Partners, L.P.
Les Austin, 918-748-3907
Chief Financial Officer