DALLAS--(BUSINESS WIRE)--Southcross Energy Partners, L.P. (NYSE:SXE) (“Southcross” or the “Partnership”) today announced that the board of directors of its general partner has declared a cash distribution for the second quarter of 2015 of $0.40 per common unit. The distribution will be paid on August 14, 2015 to unitholders of record on August 10, 2015.
In addition, the board of directors of the Partnership’s general partner declared a $0.3257 per unit distribution for the second quarter of 2015 on the Partnership’s Class B convertible units. The distribution on the Class B convertible units will be paid in the form of additional Class B convertible units.
As previously announced, to support the Partnership’s acquisition of certain assets from TexStar Midstream Services LP in August 2014, Southcross Holdings LP, the owner of the Partnership’s general partner and all of the Partnership’s subordinated units, elected to forgo distributions on any subordinated units that would cause the Partnership’s distributions to exceed its distributable cash flow for any quarterly period. This election will continue until the Partnership has distributable cash flow in excess of total distributions on the Partnership’s common and subordinated units. Additionally, as a result of the amendment to its revolving credit agreement in May 2015, Southcross has further restrictions on its ability to pay subordinated distributions. The amount of subordinated unit distributions for the second quarter of 2015, if any, will be calculated in conjunction with Southcross’ filing of its Form 10-Q, which is expected to take place on August 7, 2015.
This release serves as qualified notice to nominees under Treasury Regulation Sections 1.1446-4(b) (4) and (d). Please note that 100.0% of the Partnership’s distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of the Partnership’s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not the Partnership, are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words “expect,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “will be,” “will continue,” “will likely result,” and similar expressions, or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” Although Southcross believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, Southcross can give no assurance they will prove to be correct. Forward-looking statements contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management’s control) that may cause Southcross’ actual results in future periods to differ materially from anticipated or projected results. An extensive list of specific material risks and uncertainties affecting Southcross is contained in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2015 and in other documents and reports filed from time to time with the SEC. Any forward-looking statements in this press release are made as of the date hereof and Southcross undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.
About Southcross Energy Partners, L.P.
Southcross Energy Partners, L.P. is a master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama and include four gas processing plants, two fractionation plants and approximately 3,100 miles of pipeline. The South Texas assets are located in or near the Eagle Ford shale region. Southcross is headquartered in Dallas, Texas. Visit www.southcrossenergy.com for more information.