|
American Midstream Reports Fourth Quarter and Record Full Year 2015 Results
American Midstream Partners, LP (NYSE: AMID) (the "Partnership") today
reported financial results for the three and twelve months ended
December 31, 2015.
Highlights:
-
Generated year-over-year Adjusted EBITDA1 and Distributable
Cash Flow ("DCF")1 growth of greater than 40
percent in 2015 with forecasted growth of approximately 70 percent in
2016;
-
Acquired a minority interest in Delta House from an affiliate of the
general partner of the Partnership, contributing significant fee-based
cash flow to 2015 financial results;
-
Increased borrowing capacity under the revolving credit facility by 50
percent to $750 million; and
-
ArcLight Capital Partners, which controls the general partner of the
Partnership, initiated a purchase program in December 2015 to acquire
common units of the Partnership, purchasing more than five percent of
common units outstanding to-date.
1Indicates a non-GAAP financial measure.
EXECUTIVE COMMENTARY
"2015 marks the third consecutive year of Adjusted EBITDA and DCF
growth," said Lynn Bourdon, Chairman, President and Chief Executive
Officer. "Our financial results reflect a strong year of execution for
American Midstream, including the acquisition of a minority interest in
Delta House and transition to 90 percent fee-based cash flow in multiple
basins. Amidst a challenging environment, we delivered year-over-year
Adjusted EBITDA and DCF growth of greater than 40 percent, and we are
forecasting significant growth again in 2016.
"The Partnership's 2016 forecast reflects a full-year benefit of a
minority interest in Delta House and organic growth projects completed
in 2015, as well as fee-based organic growth projects coming online in
2016, including expansions at the Harvey terminal, startup of the
Longview rail facility, and contributions from off-spec processing in
the Permian. As a result, in 2016 we expect to generate top-quartile,
year-over-year Adjusted EBITDA and DCF growth of 70 percent with
distribution coverage in a range of 1.1 to 1.2 times.
"Our diversified portfolio of midstream assets in multiple key resource
plays provides a strong footprint to continue delivering long-term
growth. As we look ahead, we are actively evaluating organic growth and
acquisition opportunities in partnership with ArcLight Capital, who is
executing a $75 million common unit purchase program and currently holds
more than 10 percent of our outstanding common units. We remain
committed to operating prudently in the current environment while
remaining focused on delivering long-term, sustainable growth to
unitholders."
FINANCIAL RESULTS
|
Key Metrics
|
|
Three months ended December 31,
|
|
|
Years ended December 31,
|
|
|
|
|
(millions)
|
|
%
|
|
|
(millions)
|
|
%
|
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
Gross Margin
|
|
$28.1
|
|
$36.2
|
|
(22.4)
|
|
|
$123.3
|
|
$102.8
|
|
19.9
|
|
|
Adjusted EBITDA
|
|
$20.4
|
|
$19.2
|
|
6.3
|
|
|
$66.3
|
|
$45.6
|
|
45.4
|
|
|
Distributable Cash Flow
|
|
$14.3
|
|
$15.5
|
|
(7.7)
|
|
|
$46.6
|
|
$32.7
|
|
42.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin1 for the three months ended December 31, 2015
was $28.1 million, a decrease of $8.1 million, or 22.4 percent, from
$36.2 million in the prior-year period. For the twelve months ended
December 31, 2015, gross margin was $123.3 million compared to $102.8
million in 2014, an increase of $20.5 million, or 19.9 percent.
The decrease in gross margin for the three months ended December 31,
2015 was primarily due to lower natural gas liquids ("NGL") pricing,
lower condensate production, and a decrease in total average throughput
volumes in the Transmission segment. The increase in gross margin for
the twelve months ended December 31, 2015 was primarily due to higher
NGL and condensate production and higher throughput volumes in the
Gathering and Processing segment as a result of the Costar Midstream
acquisition in October 2014, partially offset by lower average
throughput volumes in the Transmission segment.
Adjusted EBITDA for the three and twelve months ended December 31, 2015
was $20.4 million and $66.3 million, respectively, compared to $19.2
million and $45.6 million for the same periods in 2014, increases of 6.3
percent and 45.4 percent, respectively. The increases were primarily
related to the October 2014 acquisition of Costar Midstream and
incremental earnings from unconsolidated affiliates, including Delta
House and the Main Pass Oil Gathering system.
DCF for the three and twelve months ended December 31, 2015 was $14.3
million and $46.6 million, respectively, representing distribution
coverage ratios of 0.84 and 0.81, respectively. The fourth quarter 2015
distribution of $0.4725 per common unit remains unchanged from the third
quarter 2015 distribution and was paid February 12, 2016.
Reconciliations of the non-GAAP financial measures gross margin,
Adjusted EBITDA, and DCF to net income (loss) attributable to the
Partnership, the most directly comparable GAAP financial measure, are
provided at the end of this press release.
Net loss attributable to the Partnership for the three and twelve months
ended December 31, 2015 was $121.6 million and $127.5 million,
respectively, which included a loss on impairment of goodwill of $118.6
million recorded in the fourth quarter of 2015. This compares to a net
loss of $94.3 million and $98.0 million for the same periods in 2014,
which included a $99.9 million asset impairment charge incurred in the
fourth quarter of 2014. During the fourth quarter of 2015, in which the
carrying value of the Partnership exceeded its market capitalization,
the Partnership completed annual impairment testing and recorded a
$118.6 million loss on impairment of goodwill primarily attributable to
changes in the assumptions supporting the fair value of goodwill related
to certain gathering and processing reporting units, including reduced
commodity price assumptions and delayed future growth.
SEGMENT PERFORMANCE
|
Gross Margin
|
|
Three months ended
December 31,
|
|
|
Years ended
December 31,
|
|
|
Percent Change (%)
|
|
|
|
|
(millions)
|
|
|
(millions)
|
|
|
quarter
|
|
year-to-date
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Gathering and Processing
|
|
$17.2
|
|
$19.7
|
|
|
$76.9
|
|
$50.8
|
|
|
(12.7)
|
|
51.4
|
|
|
Transmission
|
|
$8.3
|
|
$13.8
|
|
|
$35.3
|
|
$42.8
|
|
|
(39.9)
|
|
(17.5)
|
|
|
Terminals
|
|
$2.6
|
|
$2.7
|
|
|
$11.1
|
|
$9.2
|
|
|
(3.7)
|
|
20.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin for the Gathering and Processing segment was $17.2 million
and $76.9 million for the three and twelve months ended December 31,
2015, respectively, compared to $19.7 million and $50.8 million for the
same periods in 2014. The decrease in gross margin for the fourth
quarter was primarily due to lower condensate production and associated
margins. The increase in gross margin for the full year was primarily
attributable to incremental gross margin from the Costar-acquired assets
and higher gross margin from the Lavaca system, partially offset by
lower NGL and condensate production in the second-half of 2015 due to
lower off-spec volumes at Longview.
Natural gas throughput volumes increased in the Gathering and Processing
segment for the reported periods primarily due to the addition of the
Costar assets and incremental throughput volumes on Lavaca system,
partially offset by declines from legacy assets. Processed NGLs
increased during the same periods as a result of a full-year benefit of
Longview operations as part of the Costar acquisition.
Gross margin for the Transmission segment was $8.3 million and $35.3
million for the three and twelve months ended December 31, 2015,
respectively, compared to $13.8 million and $42.8 million for the same
periods in 2014. The decrease in gross margin for the reported periods
was primarily attributable to higher pipeline gains in 2014 and lower
interruptible transportation margins in 2015. Lower throughput volumes
in the segment were primarily due to lower average throughputs on the
High Point system and legacy Midla system.
Gross margin for the Terminals segment was $2.6 million and $11.1
million for the three and twelve months ended December 31, 2015,
respectively, compared to $2.7 million and $9.2 million for the same
periods in 2014. The change in gross margin was primarily attributable
to increases in contracted storage capacity and contractual storage rate
escalations, as well as increased ancillary services.
2016 FORECAST
The Partnership forecasts 2016 Adjusted EBITDA and DCF in a range of
$105 million to $120 million and $70 million to $85 million,
respectively, with distribution coverage in a range of 1.1 to 1.2 times,
leverage in a range of 4.0 to 4.5 times, and fee-based cash flow greater
than 90 percent. The 2016 forecast is based on current commodity pricing
and volume expectations. Growth capital expenditures in 2016, which
excludes maintenance capital, are forecasted to be in a range of $45
million to $55 million, a reduction of approximately 60 percent over
prior year, and primarily include the construction of organic growth
projects. The 2016 forecast does not include potential acquisitions,
drop downs, or asset development projects.
|
Key Metric
|
|
2016 Guidance
|
|
2015 Actual
|
|
|
Percent change
|
|
|
|
|
(millions)
|
|
|
(at the midpoint)
|
|
|
Adjusted EBITDA
|
|
$105 - $120
|
|
$66.3
|
|
|
69.7%
|
|
|
Distributable Cash Flow
|
|
$70 - $85
|
|
$46.6
|
|
|
66.3%
|
|
|
Growth Capital Expenditures
|
|
$45 - $55
|
|
$130.5
|
|
|
(61.7)%
|
|
|
|
|
|
|
|
|
|
|
|
The Partnership's 2016 guidance assumes WTI oil price of approximately
$34 per barrel, composite NGL pricing of $0.44 per gallon, and natural
gas prices of $2.35 per MMBtu. For every 10 percent change in oil and
composite NGL pricing, the Partnership estimates an impact to Adjusted
EBTIDA of $0.5 million and $1 million, respectively. The table in
Appendix A provides an overview of forecast Adjusted EBITDA's
sensitivity to changes in commodity prices as of March 4, 2016.
BALANCE SHEET
As of December 31, 2015, the Partnership had $526.9 million outstanding
under its senior secured revolving credit facility and its consolidated
total leverage ratio under the credit facility was 4.6 times. For the
three and twelve months ended December 31, 2015, capital expenditures
totaled $18.7 million and $130.5 million, respectively, which included
$1.1 million and $4.5 million for maintenance capital, respectively.
2015 capital expenditures were primarily attributable to construction of
the Lavaca system, Bakken system, Longview rail facility, Permian
off-spec treatment facility as well as the ongoing build-out of the
Harvey terminal and initial construction activities for the
Midla-Natchez pipeline.
DERIVATIVES
The Partnership enters into derivative agreements to hedge exposure to
commodity prices associated with natural gas, NGLs, and crude oil from
time to time. As of December 31, 2015, the Partnership had not entered
into commodity hedge contracts for 2016 and beyond.
CONFERENCE CALL INFORMATION
The Partnership will host a conference call at 10:00 a.m. Eastern Time
on Tuesday, March 8, 2016 to discuss these results. The call will be
webcast and archived on the Partnership’s website for a limited time.
|
Dial-In Numbers:
|
|
|
(877) 291-4570 (Domestic toll-free)
|
|
|
|
|
(647) 788-4919 (International)
|
|
Conference ID:
|
|
|
32307325
|
|
Webcast URL:
|
|
|
www.AmericanMidstream.com
under Investor Relations
|
Non-GAAP Financial Measures
This press release and the accompanying tables, include financial
measures in accordance with U.S. generally accepted accounting
principles, or GAAP, as well as non-GAAP financial measures, including “Adjusted
EBITDA,” “Gross Margin,” and “Distributable Cash Flow.”
The tables included in this press release include reconciliations of
these non-GAAP financial measures to the nearest comparable GAAP
financial measures. In addition, an “Explanation of Non-GAAP Financial
Measures” is set forth in Appendix A attached to this press release.
This press release does not include a reconciliation of forecasted
Adjusted EBITDA or forecasted DCF to forecasted net income (loss)
attributable to the Partnership because applicable information on which
this reconciliation is based is not readily available. Accordingly, such
a reconciliation is not available at this time without unreasonable
effort.
About American Midstream Partners, LP
Denver-based American Midstream Partners, LP is a growth-oriented
limited partnership formed to own, operate, develop and acquire a
diversified portfolio of midstream energy assets. The Partnership
provides midstream services in Texas, North Dakota, and the Gulf Coast
and Southeast regions of the United States. For more information about
American Midstream Partners, LP, visit www.AmericanMidstream.com.
Forward-Looking Statements
This press release includes forward-looking statements. These statements
relate to, among other things, projections of 2016 financial
performance, operational volumetrics and improvements, growth projects,
cash flows and capital expenditures. We have used the words
"anticipate," "believe," "could," "estimate," "expect," "intend," "may,"
"plan," "predict," "project," "should," "will," "potential,"
"line-of-sight," and similar terms and phrases to identify
forward-looking statements in this press release. Although we believe
the assumptions upon which these forward-looking statements are based
are reasonable, any of these assumptions could prove to be inaccurate
and the forward-looking statements based on these assumptions could be
incorrect. Our operations and future growth involve risks and
uncertainties, many of which are outside our control, and any one of
which, or a combination of which, could materially affect our results of
operations and whether the forward-looking statements ultimately prove
to be correct. Actual results and trends in the future may differ
materially from those suggested or implied by the forward-looking
statements depending on a variety of factors which are described in
greater detail in our filings with the SEC. Construction of growth
projects described in this press release is subject to risks beyond our
control including cost overruns and delays resulting from numerous
factors. In addition, we face risks associated with the integration of
acquired businesses, decreased liquidity, increased interest and other
expenses, assumption of potential liabilities, diversion of management’s
attention, and other risks associated with growth and acquisitions, if
consummated. Please see our Risk Factor disclosures included in our
Annual Report on Form 10-K for the year ended December 31, 2015, filed
with the SEC on March 7, 2016. All future written and oral
forward-looking statements attributable to us or persons acting on our
behalf are expressly qualified in their entirety by the previous
statements. The forward-looking statements herein speak as of the date
of this press release. We undertake no obligation to update any
information contained herein or to publicly release the results of any
revisions to any forward-looking statements that may be made to reflect
events or circumstances that occur, or that we become aware of, after
the date of this press release.
|
|
|
|
|
|
|
|
American Midstream Partners, LP and Subsidiaries
Consolidated
Balance Sheets
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
—
|
|
|
$
|
499
|
|
|
Accounts receivable
|
|
|
3,181
|
|
|
4,924
|
|
|
Unbilled revenue
|
|
|
15,559
|
|
|
24,619
|
|
|
Risk management assets
|
|
|
365
|
|
|
688
|
|
|
Other current assets
|
|
|
10,094
|
|
|
15,554
|
|
|
Total current assets
|
|
|
29,199
|
|
|
46,284
|
|
|
Property, plant and equipment, net
|
|
|
648,013
|
|
|
582,182
|
|
|
Goodwill
|
|
|
16,262
|
|
|
142,236
|
|
|
Intangible assets, net
|
|
|
100,965
|
|
|
106,306
|
|
|
Investment in unconsolidated affiliates
|
|
|
82,301
|
|
|
22,252
|
|
|
Other assets, net
|
|
|
14,556
|
|
|
14,298
|
|
|
Total assets
|
|
|
$
|
891,296
|
|
|
$
|
913,558
|
|
|
Liabilities and Partners’ Capital
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
4,667
|
|
|
$
|
20,326
|
|
|
Accrued gas purchases
|
|
|
7,281
|
|
|
14,326
|
|
|
Accrued expenses and other current liabilities
|
|
|
25,035
|
|
|
25,800
|
|
|
Current portion of long-term debt
|
|
|
2,338
|
|
|
2,908
|
|
|
Risk management liabilities
|
|
|
—
|
|
|
215
|
|
|
Total current liabilities
|
|
|
39,321
|
|
|
63,575
|
|
|
Asset retirement obligations
|
|
|
28,549
|
|
|
34,645
|
|
|
Other liabilities
|
|
|
1,001
|
|
|
126
|
|
|
Long-term debt
|
|
|
525,100
|
|
|
372,950
|
|
|
Deferred tax liability
|
|
|
5,826
|
|
|
5,113
|
|
|
Total liabilities
|
|
|
599,797
|
|
|
476,409
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Convertible preferred units
|
|
|
|
|
|
|
Series A convertible preferred units (9,210 thousand and 5,745
thousand units issued and outstanding as of December 31, 2015 and
December 31, 2014, respectively)
|
|
|
169,712
|
|
|
107,965
|
|
|
Equity and partners' capital
|
|
|
|
|
|
|
General Partner Interest (536 thousand and 392 thousand units issued
and outstanding as of December 31, 2015 and December 31, 2014,
respectively)
|
|
|
(104,853
|
)
|
|
(2,450
|
)
|
|
Limited Partner Interests (30,427 thousand and 22,670 thousand units
issued and outstanding as of December 31, 2015 and December 31,
2014, respectively)
|
|
|
188,477
|
|
|
294,695
|
|
|
Series B convertible units (1,350 thousand and 1,255 thousand units
issued and outstanding as of December 31, 2015 and December 31,
2014, respectively)
|
|
|
33,593
|
|
|
32,220
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
40
|
|
|
2
|
|
|
Total partners’ capital
|
|
|
117,257
|
|
|
324,467
|
|
|
Noncontrolling interests
|
|
|
4,530
|
|
|
4,717
|
|
|
Total equity and partners' capital
|
|
|
121,787
|
|
|
329,184
|
|
|
Total liabilities, equity and partners' capital
|
|
|
$
|
891,296
|
|
|
$
|
913,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Midstream Partners, LP and Subsidiaries
Consolidated
Statements of Operations
(Unaudited, in thousands,
except for per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Years Ended December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2013
|
|
Revenue
|
|
|
$
|
48,549
|
|
|
$
|
79,369
|
|
|
$
|
235,034
|
|
|
$
|
307,309
|
|
|
$
|
294,051
|
|
|
Gain (loss) on commodity derivatives, net
|
|
|
50
|
|
|
808
|
|
|
1,324
|
|
|
1,091
|
|
|
28
|
|
|
Total revenue
|
|
|
48,599
|
|
|
80,177
|
|
|
236,358
|
|
|
308,400
|
|
|
294,079
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of natural gas, NGLs and condensate
|
|
|
19,141
|
|
|
42,223
|
|
|
105,883
|
|
|
197,952
|
|
|
215,053
|
|
|
Direct operating expenses
|
|
|
16,387
|
|
|
13,813
|
|
|
59,549
|
|
|
45,702
|
|
|
32,236
|
|
|
Selling, general and administrative expenses
|
|
|
7,087
|
|
|
5,998
|
|
|
27,232
|
|
|
23,103
|
|
|
19,079
|
|
|
Equity compensation expense
|
|
|
952
|
|
|
404
|
|
|
3,774
|
|
|
1,536
|
|
|
2,094
|
|
|
Depreciation, amortization and accretion expense
|
|
|
9,915
|
|
|
9,482
|
|
|
38,014
|
|
|
28,832
|
|
|
30,002
|
|
|
Total operating expenses
|
|
|
53,482
|
|
|
71,920
|
|
|
234,452
|
|
|
297,125
|
|
|
298,464
|
|
|
Gain (loss) on involuntary conversion of property, plant and
equipment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
343
|
|
|
Gain (loss) on sale of assets, net
|
|
|
(1
|
)
|
|
2
|
|
|
(3,011
|
)
|
|
(122
|
)
|
|
—
|
|
|
Loss on impairment of property, plant and equipment
|
|
|
—
|
|
|
(99,892
|
)
|
|
—
|
|
|
(99,892
|
)
|
|
(18,155
|
)
|
|
Loss on impairment of goodwill
|
|
|
(118,592
|
)
|
|
—
|
|
|
(118,592
|
)
|
|
—
|
|
|
—
|
|
|
Operating income (loss)
|
|
|
(123,476
|
)
|
|
(91,633
|
)
|
|
(119,697
|
)
|
|
(88,739
|
)
|
|
(22,197
|
)
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(5,026
|
)
|
|
(2,564
|
)
|
|
(14,745
|
)
|
|
(7,577
|
)
|
|
(9,291
|
)
|
|
Other income (expense)
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(670
|
)
|
|
—
|
|
|
Earnings in unconsolidated affiliates
|
|
|
6,936
|
|
|
231
|
|
|
8,201
|
|
|
348
|
|
|
—
|
|
|
Net income (loss) before income tax (expense) benefit
|
|
|
(121,566
|
)
|
|
(93,964
|
)
|
|
(126,241
|
)
|
|
(96,638
|
)
|
|
(31,488
|
)
|
|
Income tax (expense) benefit
|
|
|
(69
|
)
|
|
(297
|
)
|
|
(1,134
|
)
|
|
(557
|
)
|
|
495
|
|
|
Net income (loss) from continuing operations
|
|
|
(121,635
|
)
|
|
(94,261
|
)
|
|
(127,375
|
)
|
|
(97,195
|
)
|
|
(30,993
|
)
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(1
|
)
|
|
(29
|
)
|
|
(80
|
)
|
|
(611
|
)
|
|
(2,413
|
)
|
|
Net income (loss)
|
|
|
(121,636
|
)
|
|
(94,290
|
)
|
|
(127,455
|
)
|
|
(97,806
|
)
|
|
(33,406
|
)
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
(55
|
)
|
|
7
|
|
|
25
|
|
|
214
|
|
|
633
|
|
|
Net income (loss) attributable to the Partnership
|
|
|
$
|
(121,581
|
)
|
|
$
|
(94,297
|
)
|
|
$
|
(127,480
|
)
|
|
$
|
(98,020
|
)
|
|
$
|
(34,039
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Partner's Interest in net income (loss)
|
|
|
$
|
(1,569
|
)
|
|
$
|
(1,231
|
)
|
|
$
|
(1,645
|
)
|
|
$
|
(1,279
|
)
|
|
$
|
(1,405
|
)
|
|
Limited Partners' Interest in net income (loss)
|
|
|
$
|
(120,012
|
)
|
|
$
|
(93,066
|
)
|
|
$
|
(125,835
|
)
|
|
$
|
(96,741
|
)
|
|
$
|
(32,634
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution declared per common unit (a)
|
|
|
$
|
0.4725
|
|
|
$
|
0.4725
|
|
|
$
|
1.8900
|
|
|
$
|
1.8500
|
|
|
$
|
1.7500
|
|
|
Limited partners' net income (loss) per common unit
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
$
|
(4.16
|
)
|
|
$
|
(4.98
|
)
|
|
$
|
(6.00
|
)
|
|
$
|
(8.54
|
)
|
|
$
|
(7.15
|
)
|
|
Income (loss) from discontinued operations
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.04
|
)
|
|
(0.27
|
)
|
|
Net income (loss)
|
|
|
$
|
(4.16
|
)
|
|
$
|
(4.98
|
)
|
|
$
|
(6.00
|
)
|
|
$
|
(8.58
|
)
|
|
$
|
(7.42
|
)
|
|
Weighted average number of common units outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
30,412
|
|
|
19,597
|
|
|
24,983
|
|
|
13,472
|
|
|
7,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Declared and paid for the three and twelve months ended December 31,
2015, 2014 and 2013.
|
|
|
|
|
|
|
|
|
|
|
|
American Midstream Partners, LP and Subsidiaries
Consolidated
Statements of Cash Flows
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(127,455
|
)
|
|
$
|
(97,806
|
)
|
|
$
|
(33,406
|
)
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion expense
|
|
|
38,014
|
|
|
28,832
|
|
|
29,999
|
|
|
Amortization of deferred financing costs
|
|
|
1,482
|
|
|
2,212
|
|
|
1,334
|
|
|
Amortization of weather derivative premium
|
|
|
912
|
|
|
1,035
|
|
|
662
|
|
|
Unrealized (gain) loss on derivative contracts, net
|
|
|
71
|
|
|
(595
|
)
|
|
1,505
|
|
|
Non-cash compensation
|
|
|
3,863
|
|
|
1,626
|
|
|
2,094
|
|
|
Postretirement expense (benefit)
|
|
|
(14
|
)
|
|
(45
|
)
|
|
(73
|
)
|
|
(Gain) loss on involuntary conversion of property, plant and
equipment
|
|
|
—
|
|
|
—
|
|
|
(343
|
)
|
|
(Gain) loss on sale of assets, net
|
|
|
3,161
|
|
|
207
|
|
|
75
|
|
|
Loss on impairment of property, plant and equipment
|
|
|
—
|
|
|
99,892
|
|
|
18,155
|
|
|
Loss on impairment of noncurrent assets held for sale
|
|
|
—
|
|
|
673
|
|
|
2,400
|
|
|
Loss on impairment of goodwill
|
|
|
118,592
|
|
|
—
|
|
|
—
|
|
|
Earnings in unconsolidated affiliates
|
|
|
(8,201
|
)
|
|
(348
|
)
|
|
—
|
|
|
Distributions from unconsolidated affiliates
|
|
|
8,201
|
|
|
348
|
|
|
—
|
|
|
Deferred tax expense (benefit)
|
|
|
953
|
|
|
213
|
|
|
(847
|
)
|
|
Changes in operating assets and liabilities, net of effects of
assets acquired and liabilities assumed:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
1,743
|
|
|
13,067
|
|
|
(790
|
)
|
|
Unbilled revenue
|
|
|
9,060
|
|
|
2,272
|
|
|
(226
|
)
|
|
Risk management assets and liabilities
|
|
|
(875
|
)
|
|
(809
|
)
|
|
(1,147
|
)
|
|
Other current assets
|
|
|
(962
|
)
|
|
(7,533
|
)
|
|
(1,614
|
)
|
|
Other assets, net
|
|
|
(522
|
)
|
|
6,049
|
|
|
(823
|
)
|
|
Accounts payable
|
|
|
(3,643
|
)
|
|
(12,026
|
)
|
|
(845
|
)
|
|
Accrued gas purchases
|
|
|
(7,045
|
)
|
|
(5,540
|
)
|
|
462
|
|
|
Accrued expenses and other current liabilities
|
|
|
2,857
|
|
|
(9,149
|
)
|
|
769
|
|
|
Asset retirement obligations
|
|
|
(90
|
)
|
|
(1,030
|
)
|
|
—
|
|
|
Other liabilities
|
|
|
835
|
|
|
(67
|
)
|
|
(118
|
)
|
|
Net cash provided by operating activities
|
|
|
40,937
|
|
|
21,478
|
|
|
17,223
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
Cost of acquisitions, net of cash acquired and settlements
|
|
|
7,383
|
|
|
(362,316
|
)
|
|
—
|
|
|
Additions to property, plant and equipment
|
|
|
(130,549
|
)
|
|
(96,998
|
)
|
|
(27,196
|
)
|
|
Proceeds from disposal of property, plant and equipment
|
|
|
4,813
|
|
|
6,323
|
|
|
500
|
|
|
Insurance proceeds from involuntary conversion of property, plant
and equipment
|
|
|
—
|
|
|
—
|
|
|
482
|
|
|
Investment in unconsolidated affiliates
|
|
|
(71,597
|
)
|
|
(12,000
|
)
|
|
—
|
|
|
Proceeds from equity method investment, return of capital
|
|
|
12,367
|
|
|
1,632
|
|
|
—
|
|
|
Restricted cash
|
|
|
6,475
|
|
|
(8,511
|
)
|
|
(2,000
|
)
|
|
Net cash used in investing activities
|
|
|
(171,108
|
)
|
|
(471,870
|
)
|
|
(28,214
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common units to public, net of offering
costs
|
|
|
82,488
|
|
|
204,255
|
|
|
54,853
|
|
|
Unitholder contributions
|
|
|
1,905
|
|
|
5,588
|
|
|
13,075
|
|
|
Unitholder distributions
|
|
|
(53,386
|
)
|
|
(28,009
|
)
|
|
(16,120
|
)
|
|
Issuance of Series A Units, net of issuance costs
|
|
|
44,768
|
|
|
—
|
|
|
14,393
|
|
|
Issuance of Series B Units
|
|
|
—
|
|
|
30,000
|
|
|
—
|
|
|
Unitholder distributions for common control transactions
|
|
|
(96,297
|
)
|
|
—
|
|
|
(27,650
|
)
|
|
Acquisition of noncontrolling interests
|
|
|
(74
|
)
|
|
(8
|
)
|
|
(752
|
)
|
|
Net distributions to noncontrolling interests
|
|
|
(40
|
)
|
|
(314
|
)
|
|
(661
|
)
|
|
LTIP tax netting unit repurchase
|
|
|
(756
|
)
|
|
(256
|
)
|
|
(630
|
)
|
|
Deferred financing costs
|
|
|
(2,238
|
)
|
|
(3,841
|
)
|
|
(2,113
|
)
|
|
Payments on other debt
|
|
|
(3,557
|
)
|
|
(2,589
|
)
|
|
(2,640
|
)
|
|
Borrowings on other debt
|
|
|
4,709
|
|
|
3,449
|
|
|
3,795
|
|
|
Payments on loan to affiliate
|
|
|
—
|
|
|
—
|
|
|
(20,000
|
)
|
|
Payments on bank loans
|
|
|
—
|
|
|
—
|
|
|
(34,730
|
)
|
|
Borrowings on bank loans
|
|
|
—
|
|
|
—
|
|
|
27,546
|
|
|
Payments on long-term debt
|
|
|
(189,150
|
)
|
|
(250,870
|
)
|
|
(131,571
|
)
|
|
Borrowings on long-term debt
|
|
|
341,300
|
|
|
493,085
|
|
|
134,021
|
|
|
Net cash provided by financing activities
|
|
|
129,672
|
|
|
450,490
|
|
|
10,816
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(499
|
)
|
|
98
|
|
|
(175
|
)
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
499
|
|
|
401
|
|
|
576
|
|
|
End of period
|
|
|
$
|
—
|
|
|
$
|
499
|
|
|
$
|
401
|
|
|
Supplemental cash flow information
|
|
|
|
|
|
|
|
|
|
Interest payments, net
|
|
|
$
|
12,013
|
|
|
$
|
6,726
|
|
|
$
|
6,416
|
|
|
Supplemental non-cash information
|
|
|
|
|
|
|
|
|
|
(Decrease) increase in accrued property, plant and equipment
|
|
|
$
|
(25,637
|
)
|
|
$
|
31,390
|
|
|
$
|
(5,181
|
)
|
|
Net assets contributed by General Partner in the Blackwater
Acquisition
|
|
|
—
|
|
|
—
|
|
|
22,121
|
|
|
Net assets contributed by General Partner in exchange for the
issuance of Series A Units
|
|
|
—
|
|
|
—
|
|
|
59,995
|
|
|
Fair value of Series A Units in excess of net assets received
|
|
|
—
|
|
|
—
|
|
|
15,612
|
|
|
Accrued and paid-in-kind unitholder distribution for Series A Units
|
|
|
16,978
|
|
|
13,154
|
|
|
4,811
|
|
|
Paid-in-kind unitholder distribution for Series B Units
|
|
|
1,373
|
|
|
2,220
|
|
|
—
|
|
|
Common unit issuance related to Costar Acquisition
|
|
|
—
|
|
|
147,296
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Midstream Partners, LP and Subsidiaries
Reconciliation
of Adjusted EBITDA and Distributable Cash Flow
to Net
income (loss) attributable to the Partnership
(Unaudited,
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Years Ended December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2013
|
|
Reconciliation of Adjusted EBITDA to Net income (loss)
attributable to the Partnership:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to the Partnership
|
|
|
$
|
(121,581
|
)
|
|
$
|
(94,297
|
)
|
|
$
|
(127,480
|
)
|
|
$
|
(98,020
|
)
|
|
$
|
(34,039
|
)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion expense
|
|
|
9,915
|
|
|
9,482
|
|
|
38,014
|
|
|
28,832
|
|
|
30,002
|
|
|
Interest expense
|
|
|
4,602
|
|
|
2,405
|
|
|
13,631
|
|
|
6,433
|
|
|
7,850
|
|
|
Debt issuance costs
|
|
|
254
|
|
|
461
|
|
|
2,238
|
|
|
3,841
|
|
|
2,113
|
|
|
Unrealized (gain) loss on derivatives, net
|
|
|
594
|
|
|
(2
|
)
|
|
71
|
|
|
(595
|
)
|
|
1,495
|
|
|
Non-cash equity compensation expense
|
|
|
973
|
|
|
427
|
|
|
3,863
|
|
|
1,626
|
|
|
2,094
|
|
|
Transaction expenses
|
|
|
59
|
|
|
234
|
|
|
1,426
|
|
|
1,794
|
|
|
3,987
|
|
|
Income tax expense (benefit)
|
|
|
76
|
|
|
282
|
|
|
953
|
|
|
224
|
|
|
(847
|
)
|
|
Impairment on property, plant and equipment
|
|
|
—
|
|
|
99,892
|
|
|
—
|
|
|
99,892
|
|
|
18,155
|
|
|
Loss on impairment of noncurrent assets held for sale
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
673
|
|
|
2,400
|
|
|
Loss on impairment of goodwill
|
|
|
118,592
|
|
|
—
|
|
|
118,592
|
|
|
—
|
|
|
—
|
|
|
Proceeds from equity method investment, return of capital
|
|
|
7,064
|
|
|
649
|
|
|
12,367
|
|
|
1,632
|
|
|
—
|
|
|
General Partner contribution for cost reimbursement
|
|
|
—
|
|
|
—
|
|
|
330
|
|
|
—
|
|
|
—
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
COMA income
|
|
|
139
|
|
|
342
|
|
|
841
|
|
|
943
|
|
|
843
|
|
|
Straight-line amortization of put costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
119
|
|
|
OPEB plan net periodic benefit
|
|
|
5
|
|
|
10
|
|
|
14
|
|
|
45
|
|
|
73
|
|
|
Gain (loss) on involuntary conversion of property, plant and
equipment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
343
|
|
|
Gain (loss) on sale of assets, net
|
|
|
(1
|
)
|
|
2
|
|
|
(3,161
|
)
|
|
(207
|
)
|
|
(75
|
)
|
|
Adjusted EBITDA
|
|
|
$
|
20,405
|
|
|
$
|
19,179
|
|
|
$
|
66,311
|
|
|
$
|
45,551
|
|
|
$
|
31,907
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash interest expense (a)
|
|
|
4,573
|
|
|
2,366
|
|
|
13,478
|
|
|
6,275
|
|
|
7,295
|
|
|
Normalized maintenance capital (b)
|
|
|
1,550
|
|
|
1,300
|
|
|
6,200
|
|
|
5,200
|
|
|
4,685
|
|
|
Series A convertible preferred payment (c)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,338
|
|
|
3,696
|
|
|
Distributable Cash Flow
|
|
|
$
|
14,282
|
|
|
$
|
15,513
|
|
|
$
|
46,633
|
|
|
$
|
32,738
|
|
|
$
|
16,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Excludes amortization of debt issuance costs and mark-to-market
adjustments related to interest rate derivatives.
|
|
(b)
|
|
Represents quarterly maintenance capital expenditures in each given
period, which is what the Partnership expects to be required to
maintain assets over the long term.
|
|
(c)
|
|
Calculated on a pro-rata basis for the number of days the Series A
units were outstanding during the given periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
American Midstream Partners, LP and Subsidiaries
Reconciliation
of Gross Margin to Net income (loss) attributable to the
Partnership
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Years Ended December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015 (a)
|
|
2014 (a)
|
|
2013 (a)
|
|
Reconciliation of Gross Margin to Net income (loss) attributable
to the Partnership
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering and processing segment gross margin
|
|
|
$
|
17,179
|
|
|
$
|
19,694
|
|
|
$
|
76,865
|
|
|
$
|
50,817
|
|
|
$
|
36,985
|
|
|
Transmission segment gross margin
|
|
|
8,326
|
|
|
13,846
|
|
|
35,301
|
|
|
42,828
|
|
|
32,408
|
|
|
Terminals segment gross margin (b)
|
|
|
2,562
|
|
|
2,687
|
|
|
11,115
|
|
|
9,162
|
|
|
5,428
|
|
|
Total gross margin
|
|
|
28,067
|
|
|
36,227
|
|
|
123,281
|
|
|
102,807
|
|
|
74,821
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on commodity derivatives, net
|
|
|
50
|
|
|
808
|
|
|
1,324
|
|
|
1,091
|
|
|
28
|
|
|
Earnings in unconsolidated affiliates
|
|
|
6,936
|
|
|
231
|
|
|
8,201
|
|
|
348
|
|
|
—
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating expenses (b)
|
|
|
14,540
|
|
|
12,310
|
|
|
52,909
|
|
|
39,360
|
|
|
27,833
|
|
|
Selling, general and administrative expenses
|
|
|
7,087
|
|
|
5,998
|
|
|
27,232
|
|
|
23,103
|
|
|
19,079
|
|
|
Equity compensation expense
|
|
|
952
|
|
|
404
|
|
|
3,774
|
|
|
1,536
|
|
|
2,094
|
|
|
Depreciation, amortization and accretion expense
|
|
|
9,915
|
|
|
9,482
|
|
|
38,014
|
|
|
28,832
|
|
|
30,002
|
|
|
(Gain) loss on involuntary conversion of property, plant and
equipment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(343
|
)
|
|
(Gain) loss on sale of assets, net
|
|
|
1
|
|
|
(2
|
)
|
|
3,011
|
|
|
122
|
|
|
—
|
|
|
Loss on impairment of property, plant and equipment
|
|
|
—
|
|
|
99,892
|
|
|
—
|
|
|
99,892
|
|
|
18,155
|
|
|
Loss on impairment of goodwill
|
|
|
118,592
|
|
|
—
|
|
|
118,592
|
|
|
—
|
|
|
—
|
|
|
Interest expense
|
|
|
5,026
|
|
|
2,564
|
|
|
14,745
|
|
|
7,577
|
|
|
9,291
|
|
|
Other (income) expense
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
670
|
|
|
—
|
|
|
Other, net (c)
|
|
|
506
|
|
|
584
|
|
|
770
|
|
|
(208
|
)
|
|
226
|
|
|
Income tax expense (benefit)
|
|
|
69
|
|
|
297
|
|
|
1,134
|
|
|
557
|
|
|
(495
|
)
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
1
|
|
|
29
|
|
|
80
|
|
|
611
|
|
|
2,413
|
|
|
Net income (loss) attributable to noncontrolling interest
|
|
|
(55
|
)
|
|
7
|
|
|
25
|
|
|
214
|
|
|
633
|
|
|
Net income (loss) attributable to the Partnership
|
|
|
$
|
(121,581
|
)
|
|
$
|
(94,297
|
)
|
|
$
|
(127,480
|
)
|
|
$
|
(98,020
|
)
|
|
$
|
(34,039
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
During these years, we had the following transactions that affect
comparability: i) in September 2015, we acquired a non-operated
12.9% indirect interest in Delta House, which we account for as an
equity method investment; ii) in October 2014 and January 2014, we
acquired the Costar and Lavaca systems, respectively, both of which
are included in our Gathering and Processing segment; iii) in
December 2013, we acquired Blackwater, which is included in our
Terminals segment; and iv) in April 2013, we acquired the High Point
System, a portion of which is included in our Transmission segment.
|
|
(b)
|
|
Direct operating expenses includes Gathering and Processing segment
direct operating expenses of $10.8 million and $8.6 million and
Transmission segment direct operating expenses of $3.7 million and
$3.7 million, respectively, for the three months ended December 31,
2015 and 2014. Direct operating expenses related to our Terminals
segment of $1.8 million and $1.5 million, respectively, for the
three months ended December 31, 2015 and 2014 are included within
the calculation of Terminals segment gross margin. Direct operating
expenses includes Gathering and Processing segment direct operating
expenses of $39.2 million, $23.8 million, and $14.6 million and
Transmission segment direct operating expenses of $13.7 million,
$15.6 million, and $13.3 million for the for each of the three years
ended December 31, 2015, 2014 and 2013, respectively. Direct
operating expenses related to our Terminals segment of $6.6 million,
$6.3 million, and $4.4 million are included within the calculation
of Terminals segment gross margin for each of the three years ended
December 31, 2015, 2014 and 2013, respectively.
|
|
(c)
|
|
Other, net includes realized gain on commodity derivatives of $0.6
million and $0.9 million and COMA income of $0.1 million and $0.3
million for the three months ended December 31, 2015 and 2014,
respectively. Other, net includes realized gain on commodity
derivatives of $1.6 million, $0.7 million and $1.1 million and COMA
income of $0.8 million, $0.9 million and $0.8 million for each of
the years ended December 31, 2015, 2014 and 2013, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
American Midstream Partners, LP and Subsidiaries
Segment
Financial and Operating Data
(Unaudited, in thousands,
except for operating and pricing data)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Years Ended December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2013
|
|
Segment Financial and Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering and Processing segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
34,606
|
|
|
$
|
56,406
|
|
|
$
|
173,597
|
|
|
$
|
203,616
|
|
|
$
|
205,179
|
|
|
Gain (loss) on commodity derivatives, net
|
|
|
50
|
|
|
808
|
|
|
1,324
|
|
|
1,091
|
|
|
28
|
|
|
Total revenue
|
|
|
34,656
|
|
|
57,214
|
|
|
174,921
|
|
|
204,707
|
|
|
205,207
|
|
|
Purchases of natural gas, NGLs and condensate
|
|
|
17,934
|
|
|
37,307
|
|
|
97,580
|
|
|
152,690
|
|
|
168,574
|
|
|
Direct operating expenses
|
|
|
10,847
|
|
|
8,620
|
|
|
39,189
|
|
|
23,783
|
|
|
14,574
|
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment gross margin
|
|
|
$
|
17,179
|
|
|
$
|
19,694
|
|
|
$
|
76,865
|
|
|
$
|
50,817
|
|
|
$
|
36,985
|
|
|
Operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average throughput (MMcf/d)
|
|
|
322.1
|
|
|
320.3
|
|
|
338.2
|
|
|
274.8
|
|
|
277.2
|
|
|
Average plant inlet volume (MMcf/d) (a)
|
|
|
107.1
|
|
|
120.2
|
|
|
120.9
|
|
|
89.1
|
|
|
117.3
|
|
|
Average gross NGL production (Mgal/d) (a)
|
|
|
155.2
|
|
|
138.4
|
|
|
231.1
|
|
|
64.2
|
|
|
52.0
|
|
|
Average gross condensate production (Mgal/d) (a)
|
|
|
77.6
|
|
|
167.1
|
|
|
99.8
|
|
|
75.2
|
|
|
46.2
|
|
|
Average realized prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas ($/Mcf)
|
|
|
$
|
2.31
|
|
|
$
|
4.27
|
|
|
$
|
2.91
|
|
|
$
|
4.92
|
|
|
$
|
4.03
|
|
|
NGLs ($/gal)
|
|
|
$
|
0.45
|
|
|
$
|
0.76
|
|
|
$
|
0.58
|
|
|
$
|
0.91
|
|
|
$
|
0.90
|
|
|
Condensate ($/gal)
|
|
|
$
|
0.84
|
|
|
$
|
1.15
|
|
|
$
|
0.97
|
|
|
$
|
1.62
|
|
|
$
|
2.29
|
|
|
Transmission segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
9,534
|
|
|
$
|
18,773
|
|
|
$
|
43,682
|
|
|
$
|
88,189
|
|
|
$
|
79,041
|
|
|
Purchases of natural gas, NGLs and condensate
|
|
|
1,206
|
|
|
4,916
|
|
|
8,303
|
|
|
45,262
|
|
|
46,479
|
|
|
Direct operating expenses
|
|
|
3,693
|
|
|
3,690
|
|
|
13,720
|
|
|
15,577
|
|
|
13,259
|
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment gross margin
|
|
|
$
|
8,326
|
|
|
$
|
13,846
|
|
|
$
|
35,301
|
|
|
$
|
42,828
|
|
|
$
|
32,408
|
|
|
Operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average throughput (MMcf/d)
|
|
|
634.7
|
|
|
803.4
|
|
|
708.6
|
|
|
778.9
|
|
|
644.7
|
|
|
Average firm transportation - capacity reservation (MMcf/d)
|
|
|
635.4
|
|
|
605.3
|
|
|
653.7
|
|
|
577.9
|
|
|
640.7
|
|
|
Average interruptible transportation - throughput (MMcf/d)
|
|
|
375.5
|
|
|
483.8
|
|
|
410.3
|
|
|
468.9
|
|
|
389.2
|
|
|
Terminals segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
4,409
|
|
|
$
|
4,190
|
|
|
$
|
17,755
|
|
|
$
|
15,504
|
|
|
$
|
9,831
|
|
|
Direct operating expenses
|
|
|
1,847
|
|
|
1,503
|
|
|
6,640
|
|
|
6,342
|
|
|
4,403
|
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment gross margin
|
|
|
$
|
2,562
|
|
|
$
|
2,687
|
|
|
$
|
11,115
|
|
|
$
|
9,162
|
|
|
$
|
5,428
|
|
|
Operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted Capacity (Bbls)
|
|
|
1,589,133
|
|
1,317,800
|
|
1,487,542
|
|
1,247,058
|
|
1,114,792
|
|
Design Capacity (Bbls)
|
|
|
1,800,800
|
|
1,503,400
|
|
1,688,950
|
|
1,363,817
|
|
1,165,600
|
|
Storage utilization (b)
|
|
|
88.2
|
%
|
|
87.7
|
%
|
|
88.1
|
%
|
|
91.4
|
%
|
|
95.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Excludes volumes and gross production under our elective processing
arrangements.
|
|
(b)
|
|
Excludes storage utilization associated with our discontinued
operations.
|
|
|
|
|
Appendix A
2016 Forecast Adjusted EBITDA Commodity Price Sensitivity
|
Weighted
Average
NGLs* ($/gal)
|
|
WTI Crude ($/Bbl)
|
|
|
$27
|
|
$30
|
|
$34
|
|
$37
|
|
$40
|
|
$0.35
|
|
$109.5
|
|
$110.0
|
|
$110.5
|
|
$111.0
|
|
$111.5
|
|
$0.39
|
|
$110.5
|
|
$111.0
|
|
$111.5
|
|
$112.0
|
|
$112.5
|
|
$0.44
|
|
$111.5
|
|
$112.0
|
|
$112.5
|
|
$113.0
|
|
$113.5
|
|
$0.48
|
|
$112.5
|
|
$113.0
|
|
$113.5
|
|
$114.0
|
|
$114.5
|
|
$0.52
|
|
$113.5
|
|
$114.0
|
|
$114.5
|
|
$115.0
|
|
$115.5
|
|
*Assumes Ethane 22%, Propane 32%, Iso-Butane 8%, N. Butane 14%, and
N. Gasoline 24%.
|
|
|
Note About Non-GAAP Financial Measures
Gross margin, Adjusted EBITDA and DCF are all non-GAAP financial
measures. Each has important limitations as an analytical tool because
it excludes some, but not all, items that affect the most directly
comparable GAAP financial measures. Management compensates for the
limitations of these non-GAAP financial measures as analytical tools by
reviewing the nearest comparable GAAP financial measures, understanding
the differences between the measures and incorporating these data points
into management’s decision-making process.
You should not consider any of gross margin, Adjusted EBITDA or DCF in
isolation or as a substitute for or more meaningful than our results as
reported under GAAP. Gross margin, Adjusted EBITDA and DCF may be
defined differently by other companies in our industry. Our definitions
of these non-GAAP financial measures may not be comparable to similarly
titled measures of other companies, thereby diminishing their utility.
We define Adjusted EBITDA as net income (loss) attributable to the
Partnership, plus interest expense, income tax expense, depreciation,
amortization and accretion expense, certain non-cash charges such as
non-cash equity compensation expense, unrealized losses on commodity
derivative contracts, debt issuance costs, return of capital from
unconsolidated affiliates, transaction expenses and selected charges
that are unusual or nonrecurring, less interest income, income tax
benefit, unrealized gains on commodity derivative contracts, and
selected gains that are unusual or nonrecurring. The GAAP measure most
directly comparable to our performance measure Adjusted EBITDA is net
income (loss) attributable to the Partnership.
DCF is a significant performance metric used by us and by external users
of the Partnership's financial statements, such as investors, commercial
banks and research analysts, to compare basic cash flows generated by us
to the cash distributions we expect to pay the Partnership's
unitholders. Using this metric, management and external users of the
Partnership's financial statements can quickly compute the coverage
ratio of estimated cash flows to planned cash distributions. DCF is also
an important financial measure for the Partnership's unitholders since
it serves as an indicator of the Partnership's success in providing a
cash return on investment. Specifically, this financial measure may
indicate to investors whether we are generating cash flow at a level
that can sustain or support an increase in the Partnership's quarterly
distribution rates. DCF is also a quantitative standard used throughout
the investment community with respect to publicly traded partnerships
and limited liability companies because the value of a unit of such an
entity is generally determined by the unit's yield (which in turn is
based on the amount of cash distributions the entity pays to a
unitholder). DCF will not reflect changes in working capital balances.
We define DCF as Adjusted EBITDA plus interest income, less cash paid
for interest expense, normalized maintenance capital expenditures, and
dividends related to the Series A convertible preferred units. The GAAP
financial measure most comparable to DCF is net income (loss)
attributable to the Partnership.
The GAAP measure most directly comparable to forecasted Adjusted EBITDA
and DCF is forecasted net income (loss) attributable to the Partnership.
Net income (loss) attributable to the Partnership is forecasted to be
approximately $2 million to $6 million in 2016.
Segment gross margin and gross margin are metrics that we use to
evaluate our performance. We define segment gross margin in our
Gathering and Processing segment as revenue generated from gathering and
processing operations and realized gains or (losses) on commodity
derivatives, less the cost of natural gas, crude oil, NGLs and
condensate purchased and revenue from construction, operating and
maintenance agreements ("COMA"). Revenue includes revenue generated from
fixed fees associated with the gathering and treatment of natural gas
and crude oil and from the sale of natural gas, crude oil, NGLs and
condensate resulting from gathering and processing activities under
fixed-margin and percent-of-proceeds arrangements. The cost of natural
gas, NGLs and condensate includes volumes of natural gas, NGLs and
condensate remitted back to producers pursuant to percent-of-proceeds
arrangements and the cost of natural gas purchased for our own account,
including pursuant to fixed-margin arrangements.
We define segment gross margin in our Transmission segment as revenue
generated from firm and interruptible transportation agreements and
fixed-margin arrangements, plus other related fees, less the cost of
natural gas purchased in connection with fixed-margin arrangements.
Substantially all of our gross margin in this segment is fee-based or
fixed-margin, with little to no direct commodity price risk.
We define segment gross margin in our Terminals segment as revenue
generated from fee-based compensation on guaranteed firm storage
contracts and throughput fees charged to our customers less direct
operating expense which includes direct labor, general materials and
supplies and direct overhead.
We define gross margin as the sum of our segment gross margin for our
Gathering and Processing, Transmission and Terminals segments. The GAAP
measure most directly comparable to gross margin is net income (loss)
attributable to the Partnership.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160307006506/en/ Copyright Business Wire 2016
Source: Business Wire
(March 7, 2016 - 4:16 PM EST)
News by QuoteMedia
www.quotemedia.com
|
