Oiltanking Partners, L.P. provides integrated terminaling, storage, pipeline, and related services for companies engaged in the production, distribution, and marketing of crude oil, refined petroleum products, and LPG in the United States.
The company handles crude oil; chemical feedstocks, such as naphtha and condensate; liquefied petroleum gas; and refined petroleum products, including gasoline and distillates. It also operates a crude oil and refined petroleum products terminal on the Houston Ship Channel; and a Beaumont terminal on the Neches River that serves as a regional hub for refined petroleum products for refineries located in the Gulf Coast region.
As of December 31, 2012, the company’s Houston terminal had an aggregate active storage capacity of approximately 16.2 million barrels; and Beaumont Terminal had an aggregate active storage capacity of approximately 5.5 million barrels. It serves oil companies, refiners, marketers, distributors, and chemical and petrochemical companies. OTLP GP, LLC serves as the general partner of Oiltanking Partners, L.P.
The company was founded in 2011 and is headquartered in Houston, Texas. As of October 1, 2014, Oiltanking Partners, L.P. operates as a subsidiary of Enterprise Products Partners L.P.
Initially, we will pay our common unitholders distributions of $0.3375 per common unit per quarter, or $1.35 per common unit annually, to the extent we have sufficient cash from our operations after the establishment of cash reserves and payment of fees and expenses, including reimbursements to our general partner and its affiliates, before we pay any distributions to our subordinated unitholders.
For the year ended December 31, 2010, we generated approximately 75% of our revenues from storage services fees, which our customers pay to reserve the storage space in our tanks and to compensate us for handling up to a fixed amount of product volumes, or throughput, at our terminals. These fees are owed to us regardless of the actual storage capacity utilized by our customers or the volume of products that we receive.
Our cash flows are primarily generated by fee-
We generate the remainder of our revenues from (i) throughput fees independent of or incremental to those included as part of our storage services and (ii) ancillary services fees, charged to our storage customers for services such as heating, mixing and blending their products stored in our tanks, transferring their products between our tanks and marine vapor recovery.
As of March 31, 2011, 99% of our active storage capacity was under contract, and our customer contracts had a weighted-