DENVER, July 14, 2016 /PRNewswire/ -- Antero
Midstream Partners LP (NYSE: AM) ("Antero Midstream" or the
"Partnership") today announced an increased second quarter 2016
distribution and provided its second quarter 2016 operations
update.
Highlights Include:
- Declared a cash distribution of $0.25 per unit for the second quarter of 2016, a
32% increase compared to the prior year quarter and a 6% increase
sequentially
- Increased gross acreage that is subject to dedication by
Antero Resources by approximately 20%, pro forma for Antero
Resources' recently announced Marcellus core acreage acquisition,
which is expected to close in the third quarter of 2016
- Exercised option to acquire a 15% equity interest in the
Stonewall Gathering Pipeline for $45
million
- Low pressure gathering volumes averaged 1,353 MMcf/d, a 40%
increase compared to the prior year quarter and a 4% increase
sequentially
- Compression volumes averaged 657 MMcf/d, a 45% increase
compared to the prior year quarter and a 9% increase
sequentially
- High pressure gathering volumes averaged 1,253 MMcf/d, a 5%
increase compared to the prior year quarter and a 3% increase
sequentially
- Fresh water delivery volumes averaged 105,379 Bbl/d, an 11%
increase compared to the prior year quarter and an 8% increase
sequentially
Increased Quarterly Distribution
The Board of Directors of Antero Resources Midstream Management
LLC, the general partner of the Partnership, declared a cash
distribution of $0.25 per unit
($1.00 per unit annualized) for the
second quarter of 2016. The distribution represents a 32% increase
compared to the prior year quarter and a 6% increase sequentially.
The distribution is the Partnership's sixth consecutive
quarterly distribution increase since its initial public offering
in November 2014 and will be payable
on August 24, 2016 to unitholders of
record as of August 10, 2016.
Antero Resources Core Acreage Acquisition
On June 9, 2016, Antero Resources
Corporation ("Antero Resources") announced the acquisition of
55,000 net acres in the core of the Marcellus Shale, primarily
located in Wetzel, Tyler and Doddridge Counties. Substantially all
of the approximately 106,000 gross acre footprint will be dedicated
to Antero Midstream for gathering, compression, and water
services. The acquisition translates to approximately
$500 million of identified organic
growth opportunities over the next five years for Antero Midstream
to invest in gathering, compression and water services
infrastructure at attractive organic EBITDA build-out multiples
ranging from 4-times to 7-times. In addition, Antero
Resources increased its 2017 production growth target to 20% to
25%, providing further support for Antero Midstream's 2017
distribution growth target of 28% to 30%.
Exercise of Option in Stonewall Gathering Pipeline
On May 26, 2016, Antero Midstream
exercised its option to acquire a 15% non-operated equity interest
in the Stonewall Gathering Pipeline for $45
million. The 1.4 Bcf/d Stonewall Gathering Pipeline was
placed into service on November 30,
2015 and is currently gathering approximately 1.0 Bcf/d.
Antero Resources is an anchor shipper on the Stonewall
Gathering Pipeline, with a minimum volume commitment of 900
BBtu/d. The pipeline connects Antero Resources' Marcellus
production with downstream firm sales agreements and additional
firm transportation to currently favorably priced markets.
The transaction was financed with borrowings on Antero Midstream's
revolving credit facility and has an effective date of May 26, 2016.
Paul Rady, Chairman and CEO of
Antero Midstream commented, "The investment in the Stonewall
Pipeline represents another step in Antero Midstream's strategy of
becoming a full value chain midstream provider in Appalachia.
The investment enhances Antero Midstream's overall portfolio
of attractive infrastructure projects, with the volume being driven
by Antero Resources' development plan. Based on estimated
midstream cash flows over the next twelve months, we expect
attractive capital investment to cash flow multiples of 4.5-times
to 5.5-times."
Operations Update
All operational figures are as of the date of this release
unless otherwise noted.
Low pressure gathering volumes for the second quarter of 2016
averaged 1,353 MMcf/d, a 40% increase from the second quarter of
2015 and a 4% increase from the first quarter of 2016.
Compression volumes for the second quarter of 2016 averaged 657
MMcf/d, a 45% increase from the second quarter of 2015 and a 9%
increase from the first quarter of 2016. High pressure
gathering volumes for the second quarter of 2016 averaged 1,253
MMcf/d, a 5% increase from the second quarter of 2015 and a 3%
increase compared to the first quarter of 2016. The increase in
gathering and compression volumes was due to production growth from
Antero Resources. Condensate gathering volumes averaged 1,983
Bbl/d during the quarter, a 34% decrease compared to the prior year
quarter and a 33% decrease sequentially. The sequential decrease in
condensate gathering volumes was driven by Antero Resources
shifting Ohio Utica Shale development from its Highly-Rich
Gas/Condensate area to higher rate of return locations in the
Highly-Rich Gas area, as well as the shifting of Antero Resources'
development program to the Marcellus Shale from the Utica Shale,
given the firm transportation constraints in the Utica Shale.
Fresh water delivery volumes averaged 105,379 Bbl/d during the
quarter, an 11% increase compared to the prior year quarter and an
8% increase sequentially. The increase in volumes was driven
by operational efficiencies and Marcellus completions averaging 41
barrels of water per foot, a 25% increase as compared to 2015 and
11% increase compared to the first quarter of 2016.
Commenting on the second quarter, Mr. Rady said, "Antero
Midstream continued to deliver strong volumetric growth during the
quarter ahead of expectations, driven by the operational
efficiencies and strong well results at Antero Resources. Antero
Midstream continues to reap the benefits of having a full service
midstream platform, benefitting from larger volume completion
techniques enhancing water services, and improved well results and
estimated recoveries benefitting gathering and compression
throughput."
|
|
Three Months
Ended
June
30,
|
|
|
|
|
|
|
|
%
|
|
Average Daily
Throughput:
|
|
2016
|
|
2015
|
|
Change
|
|
Low Pressure Gathering
(MMcf/d)
|
|
1,353
|
|
965
|
|
40%
|
|
Compression
(MMcf/d)
|
|
657
|
|
454
|
|
45%
|
|
High Pressure
Gathering (MMcf/d)
|
|
1,253
|
|
1,197
|
|
5%
|
|
Condensate Gathering
(Bbl/d)
|
|
1,983
|
|
2,989
|
|
(34)%
|
|
|
|
|
|
|
|
|
|
Average Daily
Volumes:
|
|
|
|
|
|
|
|
Fresh Water Delivery
(Bbl/d)
|
|
105,379
|
|
95,228
|
|
11%
|
|
In conjunction with Antero Midstream's operations update, Antero
Resources released a second quarter 2016 operations update, which
can be found at www.anteroresources.com.
Antero Midstream Second Quarter Earnings Release and
Call
Antero Midstream plans to issue its second quarter 2016 earnings
release on Tuesday, August 2, 2016
after the close of trading on the New York Stock Exchange.
Antero Midstream will hold a call on Wednesday, August 3, 2016 at 10:00 am MT to discuss the results. A brief
Q&A session for security analysts will immediately follow the
discussion of the results for the quarter. To participate in
the call, dial in at 888-347-8204 (U.S.), 855-669-9657
(Canada), or 412-902-4229
(International) and reference "Antero Midstream". A telephone
replay of the call will be available until Friday, August 12, 2016 at 10:00 am MT at 877-870-5176 (U.S.) or
858-384-5517 (International) using the passcode 10086426.
To access the live webcast and view the related earnings
conference call presentation, visit Antero Midstream's website at
www.anteromidstream.com. The webcast will be archived for
replay on the Partnership's website until Friday, August 12, 2016 at 10:00 am MT.
Antero Midstream Partners LP is a limited partnership that
owns, operates and develops midstream gathering and compression
assets located in West Virginia,
Ohio and Pennsylvania, as well as integrated water
assets that primarily service Antero Resources' properties located
in West Virginia and Ohio.
This release includes "forward-looking statements" within the
meaning of federal securities laws. Such forward-looking
statements are subject to a number of risks and uncertainties, many
of which are beyond the Partnership's control. All
statements, other than historical facts included in this release,
are forward-looking statements. All forward-looking
statements speak only as of the date of this release.
Although the Partnership believes that the plans, intentions and
expectations reflected in or suggested by the forward-looking
statements are reasonable, there is no assurance that these plans,
intentions or expectations will be achieved. Therefore,
actual outcomes and results could materially differ from what is
expressed, implied or forecast in such statements. Nothing in
this release is intended to constitute guidance with respect to
Antero Resources.
Antero Midstream cautions you that these forward-looking
statements are subject to all of the risks and uncertainties, most
of which are difficult to predict and many of which are beyond the
Partnership's control, incident to the gathering and compression
and water handling and treatment business. These risks include, but
are not limited to, Antero Resources' expected future growth,
Antero Resources' ability to meet its drilling and development
plan, commodity price volatility, ability to execute the
Partnership's business strategy, competition and government
regulations, actions taken by third-party producers, operators,
processors and transporters, inflation, environmental risks,
drilling and completion and other operating risks, regulatory
changes, the uncertainty inherent in projecting future rates of
production, cash flow and access to capital, the timing of
development expenditures, and the other risks described under "Risk
Factors" in Antero Midstream's Annual Report on Form 10-K for the
year ended December 31, 2015.
This release is intended to be a qualified notice under
Treasury Regulation Section 1.1446-4(b). Brokers and nominees
should treat one hundred percent (100%) of the Partnership's
distributions to non-U.S. investors as being attributable to income
that is effectively connected with a United States trade or business. Accordingly,
the Partnership's distributions to non-U.S. investors are
subject to federal income tax withholding at the highest applicable
effective tax rate.
For more information, contact Michael
Kennedy – CFO of Antero Midstream at (303) 357-6782 or
mkennedy@anteroresources.com.
Logo - http://photos.prnewswire.com/prnh/20141209/163435LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/antero-midstream-announces-increased-quarterly-distribution-and-second-quarter-2016-operations-update-300298564.html
SOURCE Antero Midstream