Dakota Plains Holdings Inc. announced financial results for the three and 12 months ended Dec. 31, 2015. The company:
- Transloaded 16.8 million barrels of crude oil, an increase of approximately 19 percent compared to 2014.
- Transloaded 605,000 tons of frac sand, an increase of approximately 251 percent compared to 2014. The company commenced sand transloading operations in June of 2014.
- Materially reduced operating costs by bringing transloading operations in-house in the second quarter of 2015.
- Completed construction of a 90,000-barrel crude oil storage tank in the second quarter of 2015.
Revenue from frac sand transloading was $1.1 million for the fourth quarter of 2015 compared to $0.6 million for the same period of 2014. The increase in revenue was driven by volume as the company transloaded approximately 159,000 tons of frac sand during the fourth quarter of 2015 compared to approximately 81,000 tons during the same period of 2014, a 97 percent increase. The cost of revenue related to frac sand transloading was $0.1 million compared to $0.3 million for the fourth quarter of 2014. The decrease was due to improved efficiencies as a result of bringing the transloading operations in-house during the second quarter of 2015.
Craig McKenzie, chief executive officer of Dakota Plains, said: “The energy industry, including the U.S. midstream segment, experienced a significant downturn in 2015. Despite this challenge, we were able to increase throughput volumes in both oil and sand transloading, and gain significant market share in both businesses. In addition, by materially reducing our operating costs, we were able to increase our cash margin for operations and delivered a 151 percent increase in EBITDA.”
McKenzie continued, “Notwithstanding the recent uptick in oil prices, future development and production levels in the Bakken remain uncertain. We are maintaining diligent oversight of our operations, as well as our financials, while we also pursue strategic alternatives.”