• Net income of $13.1 million, or $0.40 per common unit
• Quarterly cash distribution increased 1.0 cent to $0.45 per unit
• Adjusted EBITDA of $16.7 million and distributable cash flow of $15.3 million, LTM distribution coverage ratio of 1.16x

OMAHA, Neb., July 31, 2017 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the second quarter of 2017. Net income was $13.1 million, or $0.40 per common unit, for the second quarter of 2017 compared with $14.0 million, or $0.43 per common unit, for the same period in 2016. The partnership reported adjusted EBITDA of $16.7 million and distributable cash flow of $15.3 million for the second quarter of 2017, compared with adjusted EBITDA of $16.0 million and distributable cash flow of $15.4 million for the same period in 2016. Distribution coverage for the last twelve months (LTM) ended June 30, 2017, was 1.16x.

“Overall storage and throughput volumes were lower this quarter versus last quarter, but we expect them to return to normal levels in the last half of the year,” said Todd Becker, president and chief executive officer of Green Plains Partners. “We maintained strong distribution coverage and increased our distributions for the seventh consecutive quarter. We continue to focus on growing our downstream platform and believe our strong base of business provides a strategic and financial advantage.”

Second Quarter Highlights

• On July 20, 2017, the board of directors of the partnership’s general partner declared a quarterly cash distribution of $0.45 per unit, or approximately $14.6 million, for the quarter ended June 30, 2017. The second quarter distribution is payable on Aug. 11, 2017, to unitholders of record at the close of business on Aug. 4, 2017.
   
• Effective June 1, 2017, the partnership’s joint venture with Delek Renewables LLC, NLR Energy Logistics LLC, signed a five-year lease with the Little Rock Port Authority to construct and operate an ethanol unit-train terminal within the 2,600-acre industrial park, which is served by two Class I railroads and has convenient access to major highways. The joint venture also executed five-year terminal throughput agreements with affiliates of its partners that will provide the terminal minimum volume commitments upon completion, which is expected during the first quarter of 2018.

Results of Operations
Consolidated revenues decreased $0.4 million for the three months ended June 30, 2017, compared with the same period for 2016. Revenues generated from the partnership’s rail transportation services agreement with Green Plains Trade decreased $0.6 million due to lower average rates charged for volumetric capacity provided. This decrease was offset by revenues generated from the partnership’s storage and throughput agreement and terminal agreements with Green Plains Trade, which increased $0.6 million due to higher throughput volumes related to ethanol storage assets acquired in September 2016, reduced by lower system-wide throughput volumes. Green Plains Trade experienced lower throughput volumes than expected due to the weak ethanol margin environment during the three months ended June 30, 2017. Revenues generated from the partnership’s terminal services agreements with other customers decreased $0.4 million due to lower third-party ethanol and biodiesel volumes at the partnership’s Birmingham facility and other terminals.

Operations and maintenance expenses decreased $0.2 million for the three months ended June 30, 2017, compared with the same period for 2016, primarily due to lower railcar lease expense. Selling, general and administrative expenses increased $0.1 million for the three months ended June 30, 2017, compared with the same period for 2016, due primarily to higher accounting expenses.

Green Plains Trade is obligated to throughput a minimum of 296.6 million gallons of ethanol per quarter, according to its storage and throughput agreement with the partnership. During the second quarter of 2017, Green Plains Inc. slowed its production in response to the weak ethanol margin environment, resulting in throughput below the minimum volume commitment. The partnership charged Green Plains Trade approximately $1.0 million for a deficiency payment related to the minimum volume commitment. The deficiency payment may be applied as a credit toward volumes throughput in excess of the minimum volume commitment during the next four quarters. As a result, it was recorded as unearned revenue and included in adjusted EBITDA for the three months ended June 30, 2017.

GREEN PLAINS PARTNERS LP
SELECTED OPERATING DATA
(unaudited, in million gallons)
	Three Months Ended June 30,								Six Months Ended June 30,
	2017		2016		% Var.				2017		2016		% Var.
Product volumes
Storage and throughput services	284.5		278.9		2.0		%		605.6		526.4		15.0		%
Terminal services:
Affiliate	42.5		30.2		40.7				91.4		58.9		55.2
Non-affiliate	35.0		47.4		(26.2)				60.5		91.6		(34.0)
	77.5		77.6		(0.1)				151.9		150.5		0.9
Railcar capacity billed (daily average)	91.4		77.2		18.4				90.3		75.0		20.4

Liquidity and Capital Resources
Total liquidity as of June 30, 2017, was $30.0 million, including $2.9 million in cash and cash equivalents, and $27.1 million available under the partnership’s revolving credit facility. The balance outstanding on the partnership’s revolving credit facility was $127.9 million as of June 30, 2017.

Conference Call Information
On Aug. 1, 2017, Green Plains Partners LP and Green Plains Inc. will host a joint conference call at 11 a.m. Eastern time (10 a.m. Central time) to discuss second quarter 2017 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 888.417.8531 and 719.457.2080, respectively. The company advises participants to call at least 10 minutes prior to the start time. Alternatively, the conference call, transcript and presentation will be accessible on Green Plains Partners’ website at http://ir.greenplainspartners.com.

Non-GAAP Financial Measures
Adjusted EBITDA and distributable cash flow are supplemental financial measures used to assess the partnership’s financial performance. Management believes adjusted EBITDA and distributable cash flow provide investors useful information in assessing the partnership’s financial condition and results of operations. Adjusted EBITDA is defined as earnings before interest expense, income tax expense, depreciation and amortization, and adjustments for transaction costs related to acquisitions or financings, minimum volume commitment deficiency payments, unit-based compensation expense and net gains or losses on asset sales. Distributable cash flow is defined as adjusted EBITDA less interest paid or payable, income taxes paid or payable and maintenance capital expenditures. Adjusted EBITDA and distributable cash flow are not presented in accordance with generally accepted accounting principles (GAAP) and therefore should not be considered in isolation or as alternatives to net income or any other measure of financial performance presented in accordance with GAAP to analyze the partnership’s results.

About Green Plains Partners LP
Green Plains Partners LP (NASDAQ:GPP) is a fee-based Delaware limited partnership formed by Green Plains Inc. to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses. For more information about Green Plains Partners, visit www.greenplainspartners.com.

About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a diversified commodity-processing business with operations related to ethanol production, grain handling and storage, cattle feedlots, food ingredients, and commodity marketing and logistics services. The company is the second largest consolidated owner of ethanol production facilities in the world with 17 dry mill plants, producing nearly 1.5 billion gallons of ethanol at full capacity. Green Plains owns a 62.5% limited partner interest and a 2.0% general partner interest in Green Plains Partners. For more information about Green Plains, visit www.gpreinc.com.

Forward-Looking Statements
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements reflect management’s current views, which are subject to risks and uncertainties including, but not limited to, anticipated financial and operating results, plans and objectives that are not historical in nature. These statements may be identified by words such as “believe,” “expect,” “may,” “should,” “will” and similar expressions. Factors that could cause actual results to differ materially from those expressed or implied are discussed in Green Plains Partners’ reports filed with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. Green Plains Partners assumes no obligation to update any such forward-looking statements, except as required by law.

Consolidated Financial Results

GREEN PLAINS PARTNERS LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
	June 30,				December 31,
		2017				2016
ASSETS	(unaudited)
Current assets
Cash and cash equivalents	$	2,939			$	622
Accounts receivable, including from affiliates		16,303				20,290
Other current assets		1,162				1,363
Total current assets		20,404				22,275
Property and equipment, net		50,073				51,022
Other assets		20,150				20,479
Total assets	$	90,627			$	93,776
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities
Accounts payable, including to affiliates	$	7,194			$	6,201
Other current liabilities		8,631				11,102
Total current liabilities		15,825				17,303
Long-term debt		135,851				136,927
Other liabilities		3,167				3,712
Total liabilities		154,843				157,942
Partners’ capital		(64,216)				(64,166)
Total liabilities and partners’ capital	$	90,627			$	93,776

GREEN PLAINS PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per unit amounts)
	Three Months Ended June 30,												Six Months Ended June 30,
		2017				2016			% Var.					2017				2016			% Var.
Revenues
Affiliate	$	23,514			$	23,538			(0.1)		%		$	49,271			$	45,306			8.8		%
Non-affiliate		1,551				1,955			(20.7)					3,023				3,975			(23.9)
Total revenues		25,065				25,493			(1.7)					52,294				49,281			6.1
Operating expenses
Operations and maintenance		8,284				8,504			(2.6)					16,815				17,149			(1.9)
Selling, general and administrative		1,124				1,051			6.9					2,336				2,259			3.4
Depreciation and amortization		1,247				1,488			(16.2)					2,501				2,705			(7.5)
Total operating expenses		10,655				11,043			(3.5)					21,652				22,113			(2.1)
Operating income		14,410				14,450			(0.3)					30,642				27,168			12.8
Other income (expense)
Interest income		21				21			-					41				42			(2.4)
Interest expense		(1,301)				(410)			217.3					(2,529)				(794)			218.5
Total other expense		(1,280)				(389)			229.0					(2,488)				(752)			230.9
Income before income taxes		13,130				14,061			(6.6)					28,154				26,416			6.6
Income tax expense		45				79			(43.0)					92				252			(63.5)
Net income	$	13,085			$	13,982			(6.4)		%		$	28,062			$	26,164			7.3		%
Net income attributable to partners’ ownership interests:
General partner	$	262			$	280			(6.4)		%		$	561			$	523			7.3		%
Limited partners - common unitholders		6,416				6,852			(6.4)					13,759				12,824			7.3
Limited partners - subordinated unitholders		6,407				6,850			(6.5)					13,742				12,817			7.2
Earnings per limited partner unit (basic and diluted):
Common units	$	0.40			$	0.43			(6.5)		%		$	0.86			$	0.81			7.2		%
Subordinated units	$	0.40			$	0.43			(6.5)		%		$	0.86			$	0.81			7.2		%
Weighted average limited partner units outstanding  (basic and diluted):
Common units		15,910				15,895			0.1					15,910				15,897			0.1
Subordinated units		15,890				15,890			-					15,890				15,890			-
Supplemental Revenues Data:
Storage and throughput services	$	14,225			$	13,945			2.0		%		$	30,279			$	26,320			15.0		%
Terminal services		2,917				2,950			(1.1)					6,028				5,845			3.1
Railcar transportation services		7,255				7,901			(8.2)					14,785				15,675			(5.7)
Other		668				697			(4.2)					1,202				1,441			(16.6)
Total revenues	$	25,065			$	25,493			(1.7)		%		$	52,294			$	49,281			6.1		%

GREEN PLAINS PARTNERS LP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands)
	Six Months Ended June 30,
		2017				2016
Cash flows from operating activities:
Net income	$	28,062			$	26,164
Noncash operating adjustments:
Depreciation and amortization		2,501				2,705
Deferred income taxes		-				(3)
Other		509				560
Net change in working capital		1,707				(1,210)
Net cash provided by operating activities		32,779				28,216
Cash flows from investing activities:
Purchases of property and equipment		(1,131)				(331)
Acquisition of assets from sponsor		-				(62,312)
Net cash used by investing activities		(1,131)				(62,643)
Cash flows from financing activities:
Payments of distributions		(28,231)				(26,193)
Net proceeds (payments) - revolving credit facility		(1,100)				47,000
Other		-				(1)
Net cash provided (used) by financing activities		(29,331)				20,806
Net change in cash and cash equivalents		2,317				(13,621)
Cash and cash equivalents, beginning of period		622				16,385
Cash and cash equivalents, end of period	$	2,939			$	2,764

GREEN PLAINS PARTNERS LP
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES
(unaudited, dollars in thousands)
	Three Months Ended June 30,						Six Months Ended June 30,							LTM Ended June 30,
		2017			2016			2017			2016				2017
Net income	$	13,085		$	13,982		$	28,062		$	26,164			$	58,703
Interest expense		1,301			410			2,529			794				4,280
Income tax expense		45			79			92			252				64
Depreciation and amortization		1,247			1,488			2,501			2,705				5,443
Minimum volume commitments		1,010			-			1,010			-				1,010
Transaction costs		-			-			-			(4)				355
Unit-based compensation expense		60			37			119			22				240
Adjusted EBITDA		16,748			15,996			34,313			29,933				70,095
Less:
Interest paid or payable		1,301			410			2,529			794				4,280
Income taxes paid or payable		45			83			92			255				63
Maintenance capital expenditures		58			140			164			174				254
Distributable cash flow	$	15,344		$	15,363		$	31,528		$	28,710			$	65,498
Distributions declared(1)	$	14,608		$	13,298		$	28,886		$	26,434			$	56,468
Coverage ratio	1.05x			1.16x			1.09x			1.09x				1.16x
(1) Represents distributions declared for the applicable period and paid in the subsequent quarter.

Contact: Jim Stark | Vice President, Investor & Media Relations | 402.884.8700 | jim.stark@gpreinc.com