Southcross announces 4Q14 distribution

Southcross Energy Partners, L.P. announced that the board of directors of its general partner has declared a cash distribution for the fourth quarter of 2014 of US$0.40 per common unit. The distribution will be paid on 13 February, 2015 to unitholders of record on 9 February, 2015.

In addition, the board of directors of the Partnership’s general partner declared a US$0.3257 per unit distribution for the fourth quarter of 2014 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. Southcross Holdings LP has also elected to defer any distribution that is expected to be payable on the subordinated units for the fourth quarter of 2014 until the Partnership files its Form 10-K for its fiscal year ended 31 December, 2014. Southcross intends to make a cash distribution with respect to the subordinated units for the fourth quarter of 2014 such that the total of the subordinated, common and cash pay general partner unit distributions is equal to the Partnership’s distributable cash flow for such period.

Adapted from press release by Hannah Priestley-Eaton

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