Continuing our work in the MLP space, we will host an Expert Call TODAY at 1pm EST with Roger Burks, Founder and Managing Director of WG Consulting (WGC) and formerly the Lead Partner for Deloitte’s energy practice.
Toll Free Number:
Direct Dial Number:
Conference Code: 536617#
Given the importance of non-GAAP financial measures to MLPs (distributable cash flow, adjusted EBITDA, maintenance CapEx, etc.), we are looking to gain a better understanding of how and why MLPs use them. We also seek to understand how the use and calculation of non-GAAP measures is audited (independent auditors) and regulated (SEC), if at all.
A few questions on our mind…
- What is “maintenance CapEx”? What is this measure supposed to represent?
- Is “maintenance CapEx” a non-GAAP financial measure? Why isn’t “maintenance CapEx” reconciled back to its nearest GAAP financial measure?
- Why are recurring, non-cash expenses like stock-based compensation and non-cash interest expense added back to non-GAAP financial measures like adjusted EBITDA and distributable cash flow? What is the rationale for doing so?
- To what extent are non-GAAP financial measures audited?
- To what extent are non-GAAP financial measures regulated by the SEC?
- With the SEC’s renewed focus on accounting fraud, do you think that MLPs’ use of non-GAAP financial measures will come under increased scrutiny? Have you any indication of this already happening?
- And more...
About Roger Burks…
Roger Burks is Founder and Managing Director of WG Consulting (WGC). Mr. Burks is a CPA with over 30 years of experience, including over 20 years with Deloitte & Touche and 10 years as a senior executive in the energy industry. Prior to WGC, Mr. Burks led Deloitte’s energy practice. He served as Lead Partner for many of Deloitte’s energy clients, and led various transaction projects including external audits, acquisitions, divestitures, public and private stock, debt offerings, and merger integration, many involving early Master Limited Partnerships (MLPs). In 2012, Mr. Burks founded a financial advisory firm that was effectively merged into WGC. Today, Mr. Burks and his team at WGC serve as the Interim-CFO for a number of companies and provide all financial, operational, and transactional services to them. Additionally, Mr. Burks serves on the Board of STR Marketplace, The Houston Chapter of CPAs, and has previously served on the Board of Superior Offshore International as well as various other private company and non-profit boards.
If you have any questions for Mr. Burks, email them over to me.