American Midstream Reports Third Quarter 2015 Financial Results
Partnership Provides Initial 2016 Guidance;
Adjusted EBITDA Expected to Increase Approximately 65 Percent in
2016
American Midstream Partners, LP (NYSE: AMID) (the "Partnership") today
reported financial results for the three and nine months ended September
30, 2015.
Third quarter highlights:
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Generated Adjusted EBITDA1 of $15.8 million and $45.9
million for the three and nine months ended September 30, 2015,
respectively, an increase of approximately 75 percent over prior-year
periods;
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Continued to execute on long-term growth strategy with the acquisition
of a minority interest in Delta House from an affiliate of ArcLight
Capital Partners, partially funded with net proceeds from a public
offering of 7.5 million common units;
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De-leveraged the balance sheet and improved financial flexibility,
including a 50 percent increase in borrowing capacity under the
revolving credit facility to $750 million; and
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Maintained distribution per unit of $0.4725 for the third quarter.
Initial 2016 guidance:
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2016 Adjusted EBITDA1 in a range of $105 million to $120
million, an increase of approximately 65 percent year-over-year;
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Distributable Cash Flow1 in a range of $70 million to $85
million, an increase of approximately 50 percent year-over-year;
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Growth capital expenditures in a range of $45 million to $55 million;
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Distribution coverage in a range of 1.1 to 1.2 times; and
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Leverage in a range of 4.0 to 4.5 times.
1Indicates a non-GAAP financial measure.
FINANCIAL RESULTS
Gross margin1 for the three months ended September 30, 2015
was $29.1 million, an increase of $7.8 million, or 36.6 percent, from
$21.3 million in the prior-year period. For the nine months ended
September 30, 2015, gross margin was $95.2 million compared to $66.6
million in the prior-year period, an increase of $28.6 million, or 42.9
percent. The increase in gross margin for the three and nine months
ended September 30, 2015 was primarily due to incremental gross margin
in the Partnership's Gathering and Processing segment from the 2014
Costar Midstream and Lavaca system acquisitions and related organic
growth projects.
Adjusted EBITDA for the three and nine months ended September 30, 2015
was $15.8 million and $45.9 million, respectively, compared to $9.0
million and $26.4 million for the same periods in 2014, increases of
75.6 percent and 73.9 percent, respectively. The increases were
primarily related to the above-mentioned acquisitions, including organic
growth projects associated with the acquisition, and incremental
earnings from unconsolidated affiliates, including Main Pass Oil
Gathering (“MPOG”) and Delta House.
Distributable cash flow ("DCF") for the three and nine months ended
September 30, 2015 was $11.0 million and $32.4 million, respectively,
representing distribution coverage ratios of 0.68 and 0.79,
respectively, including the impact of 7.5 million common units issued in
September 2015 to partially fund the Delta House acquisition. The third
quarter 2015 distribution of $16.3 million, or $0.4725 per common unit,
remains unchanged from the third quarter 2014 distribution and will be
paid November 13, 2015 to unitholders of record as of November 4, 2015.
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 nine months
ended September 30, 2015 was $4.7 million and $5.9 million,
respectively, compared to net loss of $2.5 million and $3.7 million for
the same periods in 2014. The increase in net loss attributable to the
Partnership was primarily attributable to additional interest expense
incurred in the quarter and year-to-date, as well as higher
depreciation, amortization and accretion expenses related to incremental
fixed assets associated with acquisitions and organic growth projects.
These changes were partially offset by higher incremental earnings in
unconsolidated affiliates.
BUSINESS HIGHLIGHTS
Delta House - On September 18, 2015, the Partnership
acquired a 12.9 percent non-operated minority interest in Delta House
from an affiliate of ArcLight Capital Partners LLC ("ArcLight"). Delta
House is a fee-based, semi-submersible floating production system with
associated oil and gas export pipelines in the deepwater Gulf of Mexico
with nameplate capacity of 80,000 barrels of oil per day ("Bbl/d") and
200 million cubic feet of gas per day ("MMcf/d"). The purchase price of
$162 million equated to an Adjusted EBITDA multiple of approximately
five times for the twelve months following the acquisition and full-year
2016 and was immediately accretive to the Partnership's current
distribution. The acquisition was funded using a combination of net
proceeds from the 7.5 million common unit offering and borrowings under
the revolving credit facility. Eight wells are currently online, which
exceeds original expectations, with volumes of approximately 70,000
Bbl/d and 150 MMcf/d. Delta House is expected to operate at or above
nameplate capacity for a minimum of four years beginning in early 2016.
Republic Midstream Crude Oil System - The Partnership
previously executed an option agreement with a right to acquire a 50
percent interest in Republic Midstream, LLC (“Republic”), a crude oil
gathering, storage, blending, and intermediate takeaway system in the
Eagle Ford being developed by an affiliate of ArcLight. Construction of
the system is nearly complete, and the system is expected to commence
operations in early 2016. As a result of current market conditions and
the anchor producer customer’s current drilling program, the timing of a
potential future drop-down of the system is uncertain.
Capital Markets
Public Issuance of Common Units - On September 15, 2015,
the Partnership executed a public offering of 7.5 million common units
for net proceeds of approximately $81 million.
Increase in Borrowing Capacity on Revolving Credit Facility - On September
18, 2015, the Partnership executed an amendment to its revolving credit
facility to increase borrowing capacity by 50 percent, from $500 million
to $750 million, with the option to further increase borrowing capacity
to $900 million. The Partnership expects to use the credit facility to
fund growth and for other general partnership purposes.
Gathering and Processing Segment
Bakken Crude Oil Gathering System - The Bakken
crude oil gathering and transportation system commenced initial
operations during the third quarter of 2015 and reached full operations
in early fourth quarter of 2015. The 50-mile Bakken system is located in
the core of McKenzie County, North Dakota and has a design capacity of
up to 40,000 Bbl/d of crude oil for delivery to an interstate pipeline.
The system primarily serves an anchor producer and the Partnership
expects to add third-party trucked volumes to the system in the near
future.
Longview rail facility - Construction of the rail facility
is nearly complete, with operations expected to commence in the fourth
quarter of 2015 with initial capacity up to 4,500 Bbl/d for receipt of
off-spec product and delivery of natural gas liquids ("NGLs") and
marketable condensate. The rail terminal is located adjacent to the
Longview processing facility in East Texas and has the potential for
expansion, including additional transloading facilities and the option
to add unit train capacity.
Permian off-spec treatment facility - Construction
of the off-spec facility, a 50/50 joint venture with EnLink Midstream
Partners, LP ("EnLink Midstream"), will expand an existing rail terminal
and fractionator owned by EnLink Midstream near Midland, Texas, allowing
for the receipt of off-spec condensate and NGLs to be treated and sold
via pipeline, truck and rail. The facility is the first of its kind in
the region and will consist of 5,000 Bbl/d off-spec and 5,000 Bbl/d
condensate treating facilities. Construction is expected to be complete
by EnLink Midstream in early 2016 with operations commencing in the
second quarter of 2016, a shift from original expectations due to vendor
equipment delays.
Transmission Segment
Midla-Natchez Pipeline - On June 29, 2015, the Partnership
filed with the Federal Energy and Regulatory Commission (“FERC”) for
authorization to construct the Midla-Natchez pipeline. The Midla-Natchez
pipeline will replace the existing 1920s vintage Midla pipeline with a
new, 12-inch pipeline extending approximately 50 miles from Winnsboro,
Louisiana to Natchez, Mississippi. The Partnership expects to receive
final FERC approval to construct the system in the fourth quarter of
2015, begin construction in the first half of 2016, and commence service
in late 2016.
High Point Lateral - In February 2015, the Partnership
executed a 15-year, fee-based agreement to construct a 15-mile extension
of the High Point system to serve an existing refinery customer in
southeast Louisiana. Construction timing has shifted to early 2016 due
to permitting delays, and service is currently expected to begin in
mid-2016.
Terminals Segment
Harvey - Terminal storage capacity at Harvey increased to
535,200 barrels with the completion of 300,000 barrels of incremental
storage capacity year-to-date, all of which is leased under multi-year,
firm storage contracts. The deepwater ship dock was completed in July
2015 and can now accommodate ocean-bound vessels in one of the world’s
busiest ports. Harvey has the potential for more than two million
barrels of capacity when fully developed, and construction of an
additional 250,000 barrels of storage capacity is underway and expected
to be complete in the first quarter of 2016.
2015 ADJUSTED EBITDA, DCF, AND GROWTH CAPITAL EXPENDITURE FORECAST
The Partnership updated its forecast for 2015 Adjusted EBITDA and DCF to
a range of $65 million to $70 million and $50 million to $55 million,
respectively. Forecast revisions include the impact of delayed start-up
for the Permian off-spec, Longview rail, and Bakken projects, and
lower-than-expected off-spec volumes in East Texas, partially offset by
distributions from Delta House. The 2015 forecast is based on the
Partnership's current expectations of operational volumes and prices for
crude oil, natural gas, natural gas liquids, and derivative instruments
outstanding. Growth capital expenditures in 2015, which exclude capital
for maintenance, are forecast to be approximately $125 million, which
primarily includes capital expenditures associated with construction of
the Lavaca system, Permian off-spec facility, Bakken system, and
Longview rail facility as well as the ongoing build-out of the Harvey
terminal and initial construction activities for the Midla-Natchez
pipeline, among other organic growth projects.
INITIAL 2016 ADJUSTED EBITDA, DCF, AND GROWTH CAPITAL EXPENDITURE
FORECAST
The Partnership’s initial forecast for 2016 Adjusted EBITDA is in a
range of $105 million to $120 million and DCF in a range of $70 million
to $85 million, with distribution coverage forecasted in a range of 1.1
to 1.2 times and leverage in a range of 4.0 to 4.5 times. The initial
2016 forecast is based on current expectations of operational volumes
and current strip pricing for crude oil, natural gas, and natural gas
liquids. 2016 forecasted Adjusted EBITDA and DCF does not include the
benefit of potential acquisitions, drop downs, or asset development
projects. Growth capital expenditures in 2016, which exclude capital for
maintenance, are forecasted to be in a range of $45 million to $55
million and primarily includes the construction of organic growth
projects.
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2016 Guidance
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2015 Guidance
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Percent change
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(millions)
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(at the midpoint)
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Adjusted EBITDA
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$105 - $120
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$65 - $70
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66.7%
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Distributable Cash Flow
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$70 - $85
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$50 - $55
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47.6%
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Growth Capital Expenditures
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$45 - $55
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$125
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(60.0)%
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EXECUTIVE COMMENTARY
"The successful execution of our growth strategy continues to diversify
the Partnership," said Steve Bergstrom, Executive Chairman, President
and Chief Executive Officer. "While third quarter financial results were
impacted primarily by lower-than-expected contributions from certain
assets and start-up delays on several organic growth projects, we closed
the acquisition of a minority interest in Delta House, executed a common
unit offering, and increased the borrowing capacity under our revolving
credit facility by 50 percent. Our primary near-term focus is completing
fee-based expansion and development projects that contribute to
year-over-year growth in Adjusted EBITDA and position us for ongoing
long-term success in key resource plays in the U.S.
"Looking ahead, our initial guidance for 2016 includes the full-year
benefit of 2015 growth projects and acquisitions, including expansions
of the Harvey terminal, completion of the Bakken, Longview rail,
Permian, and High Point lateral projects, and importantly, the recently
acquired minority interest in Delta House. We are forecasting strong
year-over-year growth in Adjusted EBITDA of approximately 65 percent in
2016 compared to 2015, which follows strong forecasted growth of
approximately 50 percent in 2015 compared to 2014. Importantly, we are
forecasting distribution coverage of 1.1 to 1.2 times and leverage in
the low-to-mid 4 times range, with no assumed capital markets
transactions other than modest proceeds from our At-the-Market equity
issuance program. It is also important to note that our initial 2016
guidance does not include drop downs or third-party acquisitions.
However, if market conditions improve, we continue to have access to
growth opportunities not contemplated in our initial guidance.
"Over the past two years, the Partnership has transformed from a
primarily Gulf-Coast, commodity-exposed midstream operator to a
geographically diversified, fee-based MLP operating in key resource
plays in the U.S. With the ongoing support of ArcLight, we have an
inventory of significant growth opportunities and we remain committed to
delivering long-term, sustainable distribution growth to unitholders."
SEGMENT PERFORMANCE
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Three months ended
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Nine months ended
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Gross Margin
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September 30,
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September 30,
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Percent change
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(millions)
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(millions)
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quarter
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year-to-date
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2015
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2014
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2015
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2014
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Gathering and Processing
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$18.4
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$10.5
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$59.7
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$31.1
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75.2%
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92.0%
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Transmission
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$7.6
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$8.6
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$27.0
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$29.0
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(11.6)%
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(6.9)%
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Terminals
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$3.1
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$2.2
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$8.6
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$6.5
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40.9%
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32.3%
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Gathering and Processing - The Gathering and Processing segment
provides "wellhead-to-market" services to producers of natural gas and
oil, which include transporting raw natural gas from the wellhead
through gathering systems, treating the raw natural gas, processing raw
natural gas to separate NGLs from the natural gas, fractionating NGLs,
and selling or delivering pipeline-quality natural gas and NGLs to
various markets and pipeline systems.
Segment gross margin for the Gathering and Processing segment was $18.4
million and $59.7 million for the three and nine months ended September
30, 2015, respectively, compared to $10.5 million and $31.1 million for
the same periods in 2014. The increase in gross margin was primarily
attributable to incremental gross margin from the Costar-acquired
assets, including incremental margin from the Bakken system that
commenced initial operations in the third quarter 2015, and higher gross
margin from the Lavaca system in the Eagle Ford.
Natural gas throughput volumes averaged 332.1 MMcf/d and 344 MMcf/d for
the three and nine months ended September 30, 2015, respectively,
compared to 229.8 MMcf/d and 259.9 MMcf/d for the same periods in 2014.
Processed NGLs averaged 203.1 thousand gallons per day ("Mgal/d") and
254.4 Mgal/d for the three and nine months ended September 30, 2015,
respectively, compared to 39.1 Mgal/d and 39.5 Mgal/d for the same
periods in 2014. The increase in natural gas throughput volumes for the
reported periods was primarily attributable to the addition of the
Costar assets and higher throughput volumes on the Lavaca system of
approximately 120 MMcf/d, partially offset by lower throughput volumes
from the Partnership's legacy assets. The increase in processed NGLs for
the three and nine months ended September 30, 2015 was primarily
attributable to the addition of the Longview operations as part of the
Costar acquisition.
Transmission - The Transmission segment transports and delivers
natural gas from producing wells, receipt points, or pipeline
interconnects to pipeline or end-use markets primarily under fee-based
and firm transportation agreements.
Segment gross margin for the Transmission segment was $7.6 million and
$27.0 million for the three and nine months ended September 30, 2015,
respectively, compared to $8.6 million and $29.0 million for the same
periods in 2014. The decrease in gross margin for the reported periods
was attributable to changes in pipeline imbalances and lower
interruptible transportation margins, partially offset by slightly
higher average throughput volumes over the prior-year periods.
Total natural gas throughput volumes averaged 693.8 MMcf/d and 733.4
MMcf/d for the three and nine months ended September 30, 2015,
respectively, compared to 683.8 MMcf/d and 770.6 MMcf/d for the same
periods in 2014. Lower throughput volumes for the reported periods were
primarily attributable to lower throughputs on the legacy Midla system,
seasonally lower demand on certain systems, as expected, and offshore
producer and pipeline maintenance activities on the High Point System.
Terminals - The Terminals segment provides above-ground,
fee-based storage services at the Partnership's marine terminals to
support various commercial customers, including commodity brokers,
refiners and chemical manufacturers to store a range of products,
including petroleum products, distillates, and agricultural products.
Segment gross margin for the Terminals segment was $3.1 million and $8.6
million for the three and nine months ended September 30, 2015,
respectively, compared to $2.2 million and $6.5 million for the same
periods in 2014. The increase in gross margin was primarily attributable
to increases in contracted storage capacity and contractual storage rate
escalations.
BALANCE SHEET
As of September 30, 2015, the Partnership had $510.0 million outstanding
under its senior secured revolving credit facility and its consolidated
total leverage ratio under the credit facility was 4.4 times. For the
three months ended September 30, 2015, capital expenditures totaled
$32.2 million, which included $3.3 million for maintenance capital.
Third quarter 2015 capital expenditures were primarily attributable to
construction of the Bakken system, Longview rail facility, Permian
off-spec treatment facility, and ongoing build-out of the Harvey
terminal.
DERIVATIVES
The Partnership enters into derivative agreements to hedge exposure to
commodity prices associated with natural gas, NGLs, and crude oil. As of
September 30, 2015, approximately 31 percent and 34 percent of the
Partnership's expected exposure to NGL and oil prices by volume,
respectively, was hedged through the end of 2015. Details regarding the
Partnership's hedge program are found in its Quarterly Report on Form
10-Q for the quarter ended September 30, 2015, which was filed with the
Securities and Exchange Commission ("SEC") on November 9, 2015.
CONFERENCE CALL INFORMATION
The Partnership will host a conference call at 10:00 a.m. Eastern Time
on Tuesday, November 10, 2015 to discuss these results. The call will be
webcast and archived on the Partnership’s website for a limited time.
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Dial-In Numbers:
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(877) 201-0168 (Domestic toll-free)
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(647) 788-4901 (International)
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Conference ID:
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51403690
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Webcast URL:
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www.AmericanMidstream.com
under Investor Relations
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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 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 the 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, 2014, filed
with the SEC on March 10, 2015, and our Quarterly Report on Form 10-Q
for the quarter ended September 30, 2015, filed with the SEC on November
9, 2015. 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.
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American Midstream Partners, LP and Subsidiaries
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Condensed Consolidated Balance Sheets
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(Unaudited, in thousands)
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September 30,
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December 31,
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2015
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2014
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Assets
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Current assets
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Cash and cash equivalents
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$
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—
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$
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499
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Accounts receivable
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4,966
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4,924
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Unbilled revenue
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16,065
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24,619
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Risk management assets
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1,177
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688
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Other current assets
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7,136
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15,554
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Current deferred tax assets
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3,326
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3,086
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Total current assets
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32,670
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49,370
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Property, plant and equipment, net
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638,939
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582,182
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Goodwill
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134,853
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142,236
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Intangible assets, net
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102,052
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106,306
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Investment in unconsolidated affiliates
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82,571
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22,252
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Other assets, net
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14,401
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14,298
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Total assets
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$
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1,005,486
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$
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916,644
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Liabilities and Partners’ Capital
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Current liabilities
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Accounts payable
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$
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3,754
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$
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20,326
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Accrued gas purchases
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7,881
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14,326
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Accrued expenses and other current liabilities
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17,364
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25,800
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Current portion of long-term debt
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—
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2,908
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Risk management liabilities
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—
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215
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Total current liabilities
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28,999
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63,575
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Asset retirement obligations
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35,254
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34,645
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Other liabilities
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299
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126
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Long-term debt
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508,650
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372,950
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Deferred tax liabilities
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9,075
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8,199
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Total liabilities
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582,277
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479,495
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Commitments and contingencies
|
|
|
|
|
|
|
|
Convertible preferred units
|
|
|
|
|
|
|
|
Series A convertible preferred units (8,930 thousand and 5,745
thousand units issued and outstanding as of September 30, 2015 and
December 31, 2014, respectively)
|
|
|
|
|
165,332
|
|
|
|
|
107,965
|
|
Equity and partners' capital
|
|
|
|
|
|
|
|
General Partner Interests (536 thousand and 392 thousand units
issued and outstanding as of September 30, 2015 and December 31,
2014, respectively)
|
|
|
|
|
(105,869
|
)
|
|
|
|
(2,450
|
)
|
Limited Partner Interests (30,269 thousand and 22,670 thousand units
issued and outstanding as of September 30, 2015 and December 31,
2014, respectively)
|
|
|
|
|
325,867
|
|
|
|
|
294,695
|
|
Series B convertible units (1,325 thousand and 1,255 thousand units
issued and outstanding as of September 30, 2015 and December 31,
2014, respectively)
|
|
|
|
|
33,377
|
|
|
|
|
32,220
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
|
(22
|
)
|
|
|
|
2
|
|
Total partners’ capital
|
|
|
|
|
253,353
|
|
|
|
|
324,467
|
|
Noncontrolling interests
|
|
|
|
|
4,524
|
|
|
|
|
4,717
|
|
Total equity and partners' capital
|
|
|
|
|
257,877
|
|
|
|
|
329,184
|
|
Total liabilities, equity and partners' capital
|
|
|
|
$
|
1,005,486
|
|
|
|
$
|
916,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Midstream Partners, LP and Subsidiaries
|
Condensed Consolidated Statements of Operations
|
(Unaudited, in thousands, except for per unit amounts)
|
|
|
|
|
|
Three months ended September 30,
|
|
|
Nine months ended September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Revenue
|
|
|
|
$
|
54,825
|
|
|
|
$
|
69,699
|
|
|
|
$
|
186,485
|
|
|
|
$
|
227,940
|
|
Gain (loss) on commodity derivatives, net
|
|
|
|
816
|
|
|
|
606
|
|
|
|
1,274
|
|
|
|
283
|
|
Total revenue
|
|
|
|
55,641
|
|
|
|
70,305
|
|
|
|
187,759
|
|
|
|
228,223
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of natural gas, NGLs and condensate
|
|
|
|
24,431
|
|
|
|
46,690
|
|
|
|
86,742
|
|
|
|
155,729
|
|
Direct operating expenses
|
|
|
|
15,328
|
|
|
|
11,884
|
|
|
|
43,162
|
|
|
|
31,889
|
|
Selling, general and administrative expenses
|
|
|
|
7,639
|
|
|
|
5,875
|
|
|
|
20,145
|
|
|
|
17,105
|
|
Equity compensation expense
|
|
|
|
574
|
|
|
|
337
|
|
|
|
2,822
|
|
|
|
1,132
|
|
Depreciation, amortization and accretion expense
|
|
|
|
9,160
|
|
|
|
5,706
|
|
|
|
28,099
|
|
|
|
19,350
|
|
Total operating expenses
|
|
|
|
57,132
|
|
|
|
70,492
|
|
|
|
180,970
|
|
|
|
225,205
|
|
Gain (loss) on sale of assets, net
|
|
|
|
(32
|
)
|
|
|
(103
|
)
|
|
|
(3,010
|
)
|
|
|
(124
|
)
|
Operating income (loss)
|
|
|
|
(1,523
|
)
|
|
|
(290
|
)
|
|
|
3,779
|
|
|
|
2,894
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(3,553
|
)
|
|
|
(1,430
|
)
|
|
|
(9,719
|
)
|
|
|
(5,013
|
)
|
Other income (expense)
|
|
|
|
—
|
|
|
|
(672
|
)
|
|
|
—
|
|
|
|
(672
|
)
|
Earnings in unconsolidated affiliates
|
|
|
|
1,094
|
|
|
|
117
|
|
|
|
1,265
|
|
|
|
117
|
|
Net income (loss) before income tax (expense) benefit
|
|
|
|
(3,982
|
)
|
|
|
(2,275
|
)
|
|
|
(4,675
|
)
|
|
|
(2,674
|
)
|
Income tax (expense) benefit
|
|
|
|
(592
|
)
|
|
|
(122
|
)
|
|
|
(1,065
|
)
|
|
|
(260
|
)
|
Net income (loss) from continuing operations
|
|
|
|
(4,574
|
)
|
|
|
(2,397
|
)
|
|
|
(5,740
|
)
|
|
|
(2,934
|
)
|
Income (loss) from discontinued operations, net of tax
|
|
|
|
(53
|
)
|
|
|
(26
|
)
|
|
|
(79
|
)
|
|
|
(582
|
)
|
Net income (loss)
|
|
|
|
(4,627
|
)
|
|
|
(2,423
|
)
|
|
|
(5,819
|
)
|
|
|
(3,516
|
)
|
Net income (loss) attributable to noncontrolling interests
|
|
|
|
34
|
|
|
|
33
|
|
|
|
80
|
|
|
|
207
|
|
Net income (loss) attributable to the Partnership
|
|
|
|
$
|
(4,661
|
)
|
|
|
$
|
(2,456
|
)
|
|
|
$
|
(5,899
|
)
|
|
|
$
|
(3,723
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Partner's Interest in net income (loss)
|
|
|
|
$
|
(60
|
)
|
|
|
$
|
(32
|
)
|
|
|
$
|
(76
|
)
|
|
|
$
|
(48
|
)
|
Limited Partners' Interest in net income (loss)
|
|
|
|
$
|
(4,601
|
)
|
|
|
$
|
(2,424
|
)
|
|
|
$
|
(5,823
|
)
|
|
|
$
|
(3,675
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution declared per common unit (a)
|
|
|
|
$
|
0.4725
|
|
|
|
$
|
0.4625
|
|
|
|
$
|
1.4175
|
|
|
|
$
|
1.3775
|
|
Limited partners' net income (loss) per common unit
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
(0.48
|
)
|
|
|
$
|
(0.58
|
)
|
|
|
$
|
(1.02
|
)
|
|
|
$
|
(1.52
|
)
|
Income (loss) from discontinued operations
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.05
|
)
|
Net income (loss)
|
|
|
|
$
|
(0.48
|
)
|
|
|
$
|
(0.58
|
)
|
|
|
$
|
(1.02
|
)
|
|
|
$
|
(1.57
|
)
|
Weighted average number of common units outstanding:
|
Basic and diluted
|
|
|
|
23,987
|
|
|
|
13,204
|
|
|
|
23,154
|
|
|
|
11,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
|
Distributions declared and paid during the three and nine months
ended September 30, 2015 and 2014 related to prior periods' earnings.
|
|
|
|
|
|
|
American Midstream Partners, LP and Subsidiaries
|
Condensed Consolidated Statements of Cash Flows
|
(Unaudited, in thousands)
|
|
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
2015
|
|
|
2014
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
(5,819
|
)
|
|
|
$
|
(3,516
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion expense
|
|
|
|
28,099
|
|
|
|
19,350
|
|
Amortization of deferred financing costs
|
|
|
|
1,029
|
|
|
|
1,894
|
|
Amortization of weather derivative premium
|
|
|
|
694
|
|
|
|
794
|
|
Unrealized (gain) loss on commodity derivatives, net
|
|
|
|
(523
|
)
|
|
|
(592
|
)
|
Non-cash compensation expense
|
|
|
|
2,891
|
|
|
|
1,200
|
|
Postretirement expense (benefit)
|
|
|
|
55
|
|
|
|
(35
|
)
|
(Gain) loss on sale of assets, net
|
|
|
|
3,160
|
|
|
|
209
|
|
Loss on impairment of noncurrent assets held for sale
|
|
|
|
—
|
|
|
|
673
|
|
Deferred tax expense (benefit)
|
|
|
|
876
|
|
|
|
(58
|
)
|
Changes in operating assets and liabilities, net of effects of
assets acquired and liabilities assumed:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(42
|
)
|
|
|
(599
|
)
|
Unbilled revenue
|
|
|
|
8,554
|
|
|
|
1,913
|
|
Risk management assets and liabilities
|
|
|
|
(875
|
)
|
|
|
(965
|
)
|
Other current assets
|
|
|
|
1,996
|
|
|
|
2,858
|
|
Other assets, net
|
|
|
|
21
|
|
|
|
(608
|
)
|
Accounts payable
|
|
|
|
(3,847
|
)
|
|
|
624
|
|
Accrued gas purchases
|
|
|
|
(6,445
|
)
|
|
|
(2,734
|
)
|
Accrued expenses and other current liabilities
|
|
|
|
1,652
|
|
|
|
(1,446
|
)
|
Asset retirement obligations
|
|
|
|
—
|
|
|
|
(690
|
)
|
Other liabilities
|
|
|
|
155
|
|
|
|
(32
|
)
|
Net cash provided by operating activities
|
|
|
|
31,631
|
|
|
|
18,240
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Cost of acquisitions, net of cash acquired and settlements
|
|
|
|
7,383
|
|
|
|
(110,909
|
)
|
Additions to property, plant and equipment
|
|
|
|
(111,864
|
)
|
|
|
(41,257
|
)
|
Proceeds from disposals of property, plant and equipment
|
|
|
|
4,797
|
|
|
|
6,323
|
|
Investment in unconsolidated affiliates
|
|
|
|
(64,406
|
)
|
|
|
(12,000
|
)
|
Return of capital from unconsolidated affiliates
|
|
|
|
5,303
|
|
|
|
983
|
|
Restricted cash
|
|
|
|
6,475
|
|
|
|
—
|
|
Net cash used in investing activities
|
|
|
|
(152,312
|
)
|
|
|
(156,860
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Proceeds from issuance of common units to public, net of offering
costs
|
|
|
|
80,983
|
|
|
|
204,335
|
|
Unitholder contributions
|
|
|
|
1,905
|
|
|
|
2,896
|
|
Unitholder distributions
|
|
|
|
(36,935
|
)
|
|
|
(19,549
|
)
|
Issuance of Series A Units
|
|
|
|
45,000
|
|
|
|
—
|
|
Issuance of Series B Units
|
|
|
|
—
|
|
|
|
30,000
|
|
Unitholder distributions for Delta House
|
|
|
|
(100,649
|
)
|
|
|
—
|
|
Acquisition of noncontrolling interests
|
|
|
|
(74
|
)
|
|
|
(8
|
)
|
Net distributions to noncontrolling interests
|
|
|
|
(101
|
)
|
|
|
(273
|
)
|
LTIP tax netting unit repurchase
|
|
|
|
(755
|
)
|
|
|
(253
|
)
|
Payment of deferred financing costs
|
|
|
|
(1,984
|
)
|
|
|
(3,380
|
)
|
Payments on other debt
|
|
|
|
(2,908
|
)
|
|
|
(2,217
|
)
|
Borrowings on other debt
|
|
|
|
—
|
|
|
|
170
|
|
Payments on long-term debt
|
|
|
|
(152,000
|
)
|
|
|
(212,670
|
)
|
Borrowings on long-term debt
|
|
|
|
287,700
|
|
|
|
139,635
|
|
Net cash provided by financing activities
|
|
|
|
120,182
|
|
|
|
138,686
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
(499
|
)
|
|
|
66
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
499
|
|
|
|
393
|
|
End of period
|
|
|
|
$
|
—
|
|
|
|
$
|
459
|
|
Supplemental cash flow information
|
|
|
|
|
|
|
|
Interest payments, net
|
|
|
|
$
|
7,606
|
|
|
|
$
|
4,064
|
|
Supplemental non-cash information
|
|
|
|
|
|
|
|
Increase (decrease) in accrued property, plant and equipment
|
|
|
|
$
|
(24,666
|
)
|
|
|
$
|
17,746
|
|
Accrued paid in-kind unitholder distributions for Series A Units
|
|
|
|
12,598
|
|
|
|
9,925
|
|
In-kind unitholder distributions for Series B Units
|
|
|
|
1,157
|
|
|
|
1,671
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30,
|
|
|
Nine months ended September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Reconciliation of Adjusted EBITDA to Net income (loss)
attributable to the Partnership:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to the Partnership
|
|
|
|
$
|
(4,661
|
)
|
|
|
$
|
(2,456
|
)
|
|
|
$
|
(5,899
|
)
|
|
|
$
|
(3,723
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion expense
|
|
|
|
9,160
|
|
|
|
5,706
|
|
|
|
28,099
|
|
|
|
19,350
|
|
Interest expense
|
|
|
|
3,285
|
|
|
|
1,184
|
|
|
|
9,029
|
|
|
|
4,028
|
|
Debt issuance costs
|
|
|
|
1,708
|
|
|
|
3,226
|
|
|
|
1,984
|
|
|
|
3,380
|
|
Unrealized (gain) loss on derivatives, net
|
|
|
|
(311
|
)
|
|
|
(706
|
)
|
|
|
(523
|
)
|
|
|
(592
|
)
|
Non-cash equity compensation expense
|
|
|
|
643
|
|
|
|
405
|
|
|
|
2,891
|
|
|
|
1,200
|
|
Transaction expenses
|
|
|
|
1,325
|
|
|
|
521
|
|
|
|
1,368
|
|
|
|
1,559
|
|
Income tax expense (benefit)
|
|
|
|
419
|
|
|
|
103
|
|
|
|
876
|
|
|
|
(58
|
)
|
Loss on impairment of noncurrent assets held for sale
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
673
|
|
Return of capital from unconsolidated affiliates
|
|
|
|
3,974
|
|
|
|
983
|
|
|
|
5,303
|
|
|
|
983
|
|
General Partner contribution for cost reimbursement
|
|
|
|
330
|
|
|
|
—
|
|
|
|
330
|
|
|
|
—
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMA income
|
|
|
|
221
|
|
|
|
66
|
|
|
|
702
|
|
|
|
601
|
|
OPEB plan net periodic benefit
|
|
|
|
3
|
|
|
|
12
|
|
|
|
9
|
|
|
|
36
|
|
Gain (loss) on sale of assets, net
|
|
|
|
(182
|
)
|
|
|
(103
|
)
|
|
|
(3,160
|
)
|
|
|
(209
|
)
|
Adjusted EBITDA
|
|
|
|
$
|
15,830
|
|
|
|
$
|
8,991
|
|
|
|
$
|
45,907
|
|
|
|
$
|
26,372
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash interest expense (a)
|
|
|
|
3,260
|
|
|
|
1,146
|
|
|
|
8,904
|
|
|
|
3,909
|
|
Normalized maintenance capital (b)
|
|
|
|
1,550
|
|
|
|
1,300
|
|
|
|
4,650
|
|
|
|
3,900
|
|
Series A convertible preferred payment
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,338
|
|
Distributable Cash Flow
|
|
|
|
$
|
11,020
|
|
|
|
$
|
6,545
|
|
|
|
$
|
32,353
|
|
|
|
$
|
17,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
American Midstream Partners, LP and Subsidiaries
|
Reconciliation of Gross Margin to Net income (loss) attributable
to the Partnership
|
(Unaudited, in thousands)
|
|
|
|
|
|
Three months ended September 30,
|
|
|
Nine months ended September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Reconciliation of Gross Margin to Net income (loss) attributable
to the Partnership:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering and processing segment gross margin
|
|
|
|
$
|
18,422
|
|
|
|
$
|
10,513
|
|
|
|
$
|
59,687
|
|
|
|
$
|
31,122
|
|
Transmission segment gross margin
|
|
|
|
7,581
|
|
|
|
8,619
|
|
|
|
26,975
|
|
|
|
28,983
|
|
Terminals segment gross margin
|
|
|
|
3,131
|
|
|
|
2,200
|
|
|
|
8,553
|
|
|
|
6,475
|
|
Total Gross Margin
|
|
|
|
29,134
|
|
|
|
21,332
|
|
|
|
95,215
|
|
|
|
66,580
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on commodity derivatives, net
|
|
|
|
816
|
|
|
|
606
|
|
|
|
1,274
|
|
|
|
283
|
|
Earnings in unconsolidated affiliates
|
|
|
|
1,094
|
|
|
|
117
|
|
|
|
1,265
|
|
|
|
117
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating expenses (a)
|
|
|
|
13,714
|
|
|
|
10,282
|
|
|
|
38,369
|
|
|
|
27,050
|
|
Selling, general and administrative expenses
|
|
|
|
7,639
|
|
|
|
5,875
|
|
|
|
20,145
|
|
|
|
17,105
|
|
Equity compensation expense
|
|
|
|
574
|
|
|
|
337
|
|
|
|
2,822
|
|
|
|
1,132
|
|
Depreciation, amortization and accretion expense
|
|
|
|
9,160
|
|
|
|
5,706
|
|
|
|
28,099
|
|
|
|
19,350
|
|
(Gain) loss on sale of assets, net
|
|
|
|
32
|
|
|
|
103
|
|
|
|
3,010
|
|
|
|
124
|
|
Interest expense
|
|
|
|
3,553
|
|
|
|
1,430
|
|
|
|
9,719
|
|
|
|
5,013
|
|
Other expense
|
|
|
|
—
|
|
|
|
672
|
|
|
|
—
|
|
|
|
672
|
|
Other, net (b)
|
|
|
|
354
|
|
|
|
(75
|
)
|
|
|
265
|
|
|
|
(792
|
)
|
Income tax expense (benefit)
|
|
|
|
592
|
|
|
|
122
|
|
|
|
1,065
|
|
|
|
260
|
|
Gain (loss) from discontinued operations, net of tax
|
|
|
|
53
|
|
|
|
26
|
|
|
|
79
|
|
|
|
582
|
|
Net income (loss) attributable to noncontrolling interest
|
|
|
|
34
|
|
|
|
33
|
|
|
|
80
|
|
|
|
207
|
|
Net income (loss) attributable to the Partnership
|
|
|
|
$
|
(4,661
|
)
|
|
|
$
|
(2,456
|
)
|
|
|
$
|
(5,899
|
)
|
|
|
$
|
(3,723
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
|
Direct operating expenses includes Gathering and Processing segment
direct operating expenses of $10.1 million and $5.2 million,
respectively, and Transmission segment direct operating expenses of
$3.6 million and $5.0 million, respectively, for the three months
ended September 30, 2015 and 2014. Direct operating expenses related
to our Terminals segment of $1.6 million and $1.6 million for the
three months ended September 30, 2015 and 2014, respectively, are
included within the calculation of Terminals segment gross margin.
|
|
|
|
|
|
|
|
|
|
Direct operating expenses includes Gathering and Processing segment
direct operating expenses of $28.3 million and $15.2 million,
respectively, and Transmission segment direct operating of $10.0
million and $11.9 million, respectively, for the nine months ended
September 30, 2015 and 2014. Direct operating expenses related to
our Terminals segment of $4.8 million and $4.8 million,
respectively, for the nine months ended September 30, 2015 and 2014
are included within the calculation of Terminals segment gross
margin.
|
|
|
|
|
|
(b)
|
|
|
|
Other, net includes realized gain (loss) on commodity derivatives of
$0.6 million and less than ($0.1) million, respectively, and COMA
income of $0.2 million and $0.1 million, respectively, for the three
months ended September 30, 2015 and 2014.
|
|
|
|
|
|
|
|
|
|
Other, net includes realized gain (loss) on commodity derivatives
of $1.0 million and $(0.2) million, respectively, and COMA income
of $0.7 million and $0.6 million, respectively, for the nine
months ended September 30, 2015 and 2014.
|
|
|
|
|
|
|
American Midstream Partners, LP and Subsidiaries
|
Segment Financial and Operating Data
|
(Unaudited, in thousands, except for operating and pricing data)
|
|
|
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Segment Financial and Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering and Processing segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
40,103
|
|
|
|
$
|
45,569
|
|
|
|
$
|
138,991
|
|
|
|
$
|
147,209
|
|
Gain (loss) on commodity derivatives, net
|
|
|
|
816
|
|
|
|
606
|
|
|
|
1,274
|
|
|
|
283
|
|
Total revenue
|
|
|
|
40,919
|
|
|
|
46,175
|
|
|
|
140,265
|
|
|
|
147,492
|
|
Purchases of natural gas, NGLs and condensate
|
|
|
|
22,055
|
|
|
|
35,024
|
|
|
|
79,645
|
|
|
|
115,383
|
|
Direct operating expenses
|
|
|
|
10,119
|
|
|
|
5,249
|
|
|
|
28,342
|
|
|
|
15,163
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment gross margin
|
|
|
|
$
|
18,422
|
|
|
|
$
|
10,513
|
|
|
|
$
|
59,687
|
|
|
|
$
|
31,122
|
|
Operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average throughput (MMcf/d)
|
|
|
|
332.1
|
|
|
|
229.8
|
|
|
|
344.0
|
|
|
|
259.9
|
|
Average plant inlet volume (MMcf/d) (a) (b)
|
|
|
|
120.7
|
|
|
|
62.1
|
|
|
|
125.5
|
|
|
|
78.6
|
|
Average gross NGL production (Mgal/d) (a) (c)
|
|
|
|
203.1
|
|
|
|
39.1
|
|
|
|
254.4
|
|
|
|
39.5
|
|
Average gross condensate production (Mgal/d) (a)
|
|
|
|
88.2
|
|
|
|
38.7
|
|
|
|
99.6
|
|
|
|
40.9
|
|
Average realized prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas ($/Mcf)
|
|
|
|
$
|
2.99
|
|
|
|
$
|
4.60
|
|
|
|
$
|
3.11
|
|
|
|
$
|
5.14
|
|
NGLs ($/gal)
|
|
|
|
$
|
0.51
|
|
|
|
$
|
0.97
|
|
|
|
$
|
0.60
|
|
|
|
$
|
1.02
|
|
Condensate ($/gal)
|
|
|
|
$
|
0.91
|
|
|
|
$
|
2.17
|
|
|
|
$
|
1.00
|
|
|
|
$
|
2.21
|
|
Transmission segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
|
$
|
9,977
|
|
|
|
$
|
20,328
|
|
|
|
$
|
34,148
|
|
|
|
$
|
69,417
|
|
Purchases of natural gas, NGLs and condensate
|
|
|
|
2,376
|
|
|
|
11,666
|
|
|
|
7,097
|
|
|
|
40,346
|
|
Direct operating expenses
|
|
|
|
3,595
|
|
|
|
5,033
|
|
|
|
10,027
|
|
|
|
11,887
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment gross margin
|
|
|
|
$
|
7,581
|
|
|
|
$
|
8,619
|
|
|
|
$
|
26,975
|
|
|
|
$
|
28,983
|
|
Operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average throughput (MMcf/d)
|
|
|
|
693.8
|
|
|
|
683.8
|
|
|
|
733.4
|
|
|
|
770.6
|
|
Average firm transportation - capacity reservation (MMcf/d)
|
|
|
|
623.6
|
|
|
|
534.2
|
|
|
|
658.4
|
|
|
|
568.8
|
|
Average interruptible transportation - throughput (MMcf/d)
|
|
|
|
405.3
|
|
|
|
393.4
|
|
|
|
421.9
|
|
|
|
463.9
|
|
Terminals segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
|
$
|
4,745
|
|
|
|
$
|
3,802
|
|
|
|
$
|
13,346
|
|
|
|
$
|
11,314
|
|
Direct operating expenses
|
|
|
|
1,614
|
|
|
|
1,602
|
|
|
|
4,793
|
|
|
|
4,839
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment gross margin
|
|
|
|
$
|
3,131
|
|
|
|
$
|
2,200
|
|
|
|
$
|
8,553
|
|
|
|
$
|
6,475
|
|
Operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted Capacity (Bbls)
|
|
|
|
1,587,900
|
|
|
1,244,333
|
|
|
1,453,678
|
|
|
1,223,478
|
Design Capacity (Bbls)
|
|
|
|
1,784,133
|
|
|
1,520,667
|
|
|
1,651,667
|
|
|
1,317,289
|
Storage utilization (d)
|
|
|
|
89.0
|
%
|
|
|
81.8
|
%
|
|
|
88.0
|
%
|
|
|
92.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
|
Excludes volumes and gross production under our elective processing
arrangements.
|
(b)
|
|
|
|
Includes gross plant inlet volume associated with our interest in
the Burns Point processing plant.
|
(c)
|
|
|
|
Includes net NGL production associated with our interest in the
Burns Point processing plant.
|
(d)
|
|
|
|
Excludes storage utilization associated with our discontinued
operations.
|
|
|
|
|
|
Appendix A
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
expense, certain non-cash charges such as non-cash equity compensation,
unrealized losses on commodity derivative contracts, return of capital
from unconsolidated affiliates and selected charges that are unusual or
nonrecurring, less interest income, income tax benefit, unrealized gains
on commodity derivative contracts, amortization of commodity put
purchase costs, and selected gains that are unusual or nonrecurring. The
GAAP measure most directly comparable to 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 2015 and approximately $28
million to $32 million in 2016.
This press release includes forecasted non-GAAP financial measures for
the Delta House acquisition, including “Adjusted EBITDA.” The GAAP
measure most directly comparable to Adjusted EBITDA is Net income (loss)
attributable to the acquisition. The Partnership’s interest in Net
income (loss) attributable to the acquisition is forecasted to be
approximately $31 million for the twelve months following the
acquisition and approximately $33 million for 2016.
Gross margin and segment 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 less the cost of natural gas, 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 treating of natural gas and from the
sale of natural gas, 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/20151109006695/en/ Copyright Business Wire 2015
Source: Business Wire
(November 9, 2015 - 4:01 PM EST)
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