Andeavor Logistics LP (NYSE:ANDX) Q4 2018 Earnings Conference Call - Final Transcript
Feb 07, 2019 • 01:00 pm ET
Welcome to the ANDX Fourth Quarter 2018 Earnings Call. My name is Elon and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions). Please note that this conference is now being recorded. And I would now like to turn the call over to Kristina Kazarian. Kristina you may begin.
Kristina A. Kazarian
Good afternoon and welcome to the Andeavor Logistics' fourth quarter 2018 earnings webcast and conference call. The synchronized slides that accompany this call can be found on andeavorlogistics.com under the Investor tab. On the call today are Gary Heminger, Chairman and CEO of Andeavor Logistics; Don Sorensen, President of Andeavor Logistics; Greg Goff, Executive Vice Chairman of MPC; Tim Griffith, CFO of MPC and Andy Woodward, Vice President of Finance of Andeavor Logistics as well as other members of the management team. We invite you to read the Safe Harbor statements and non-GAAP disclaimer on slide 2, it's a reminder that we will be making forward-looking statements during the call, and during the question-and-answer session that follows. Actual results may differ materially from what we expect today. Factors that could cause actual results to differ are included there as well as in our filings with the SEC. Now I will turn the call over to Gary Heminger for some fourth quarter and full year highlights.
Thanks, Christina. And thank you for joining our call this afternoon. This morning, we reported fourth quarter and full year results, which included many milestones for Andeavor Logistics. Andeavor Logistics delivered EBITDA of $333 million for the quarter, an increase of $52 million over the prior year. Full-year EBITDA of $1.2 billion increased $252 million over 2017. The primary drivers of the year-over-year increase in earnings for the August dropdown of midstream assets, the acquisition of the SLC Core Pipeline System and execution of several organic growth projects in the Permian and Bakken regions.
Full distributable cash flow attributable to common unit holders was $907 million, up 36% year-over-year. This provided distribution coverage of 1.02 times for both the quarter and for full year. The company ended the year with a $5 billion of debt, which is approximately 3.8 times last 12 months pro forma EBITDA. As we look forward into 2019, the dynamics in the Permian Basin continue to be compelling and we believe we'll continue to support attractive organic growth opportunities. In the Bakken, crude production continues to increase and with our line of sight on well connects across our footprint and associated gas production in the region, we continue to see opportunities for our business.
As we move into 2019, we remain focused on enhancing the financial profile of Andeavor Logistics on a standalone basis and plan to carefully manage our leverage levels and focus on meaningfully increasing our distribution coverage in the coming quarters. Lastly, as stated on its earlier conference call, MPC is currently reviewing the various options for its 2 MLPs. Our comments