DENVER, May 8, 2017 /PRNewswire/ -- Antero
Midstream Partners LP (NYSE: AM) ("Antero Midstream" or the
"Partnership") today released its first quarter 2017 financial and
operational results. The relevant condensed consolidated
financial statements are included in Antero Midstream's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2017, which has been filed with the
Securities and Exchange Commission.
First Quarter Highlights Include:
- Net income of $75 million, or
$0.35 per limited partner unit,
representing a per unit increase of 52% compared to the prior year
quarter
- Adjusted EBITDA of $119
million, a 49% increase compared to the prior year
quarter
- Distributable cash flow of $91
million, resulting in DCF coverage of 1.4x
- Consolidated net debt to trailing twelve months EBITDA of
1.9x as of March 31, 2017
- Declared $0.30 per unit cash
distribution for the first quarter of 2017, a 28% increase compared
to the prior year quarter and a 7% increase sequentially
Recent Developments
Distribution for the First Quarter of 2017
The Board of Directors of the general partner of the
Partnership, declared a cash distribution of $0.30 per unit ($1.20 per unit annualized) for the first quarter
of 2017. The distribution represents a 28% increase compared to the
prior year quarter and a 7% increase sequentially. The
distribution is the Partnership's ninth consecutive quarterly
distribution increase since its initial public offering in
November 2014 and will be paid on
May 10, 2017 to unitholders of record
as of May 3, 2017. Cash
distributions to be paid on incentive distribution rights for the
first quarter of 2017 totaled $12
million.
Commenting on the outlook for Antero Midstream, Paul Rady, Chairman and CEO said, "Antero
Midstream continues to build momentum in expanding its operations
across the midstream value chain, further supported by Antero
Resources' recently announced commitment to Sherwood Plants 10 and 11, which will be owned
by the joint venture between Antero Midstream and MarkWest.
We continue to see significant opportunities for expansion in
Appalachia both on our organic development program and
opportunities that present themselves as a result of Antero
Resources' leadership in NGL production and liquids-rich drilling
inventory in Appalachia."
First Quarter 2017 Financial Results
Low pressure gathering volumes for the first quarter of 2017
averaged 1,659 MMcf/d, a 26% increase from the first quarter of
2016 and a 9% increase sequentially. Compression volumes for
the first quarter of 2017 averaged 1,028 MMcf/d, a 68% increase
from the first quarter of 2016 and a 12% increase sequentially.
High pressure gathering volumes for the first quarter of 2017
averaged 1,581 MMcf/d, a 28% increase from the first quarter of
2016 and a 12% increase sequentially. The increase in
gathering and compression volumes was driven by production growth
from Antero Resources in Antero Midstream's area of
dedication. Fresh water delivery volumes averaged 148 MBbl/d
during the quarter, a 51% increase compared to the prior year
quarter and a 1% decrease sequentially.
|
|
Three Months
Ended
March
31,
|
|
|
|
Average Daily
Throughput:
|
|
2016
|
|
2017
|
|
%
Change
|
|
Low Pressure Gathering
(MMcf/d)
|
|
1,303
|
|
1,659
|
|
26%
|
|
Compression
(MMcf/d)
|
|
606
|
|
1,028
|
|
68%
|
|
High Pressure
Gathering (MMcf/d)
|
|
1,222
|
|
1,581
|
|
28%
|
|
|
|
|
|
|
|
|
Average Daily
Volumes:
|
|
|
|
|
|
|
Fresh Water Delivery
(MBbl/d)
|
|
97
|
|
148
|
|
51%
|
|
For the three months ended March 31,
2017, the Partnership reported revenues of $175 million, comprised of $92 million from the Gathering and Processing
segment and $83 million from the
Water Handling and Treatment segment. Revenues increased 28%
compared to the prior year quarter, primarily driven by growth in
throughput volumes and fresh water delivery volumes. Water Handling
and Treatment segment revenues include $33
million from produced water handling and high rate water
transfer services provided to Antero Resources, which is billed at
cost plus 3%.
Direct operating expenses for the Gathering and Processing and
Water Handling and Treatment segments were $8 million and $40
million, respectively, for a total of $48 million compared to $49 million in direct operating expenses in the
prior year quarter. Water Handling and Treatment direct operating
expenses include $32 million from
produced water handling and high rate water transfer services.
General and administrative expenses including equity-based
compensation were $14 million, a
$1 million increase compared to the
first quarter of 2016. General and administrative expenses
excluding equity-based compensation were $8
million during the first quarter of 2017, a 15% increase
compared to the first quarter of 2016. The increase in general and
administrative expenses was primarily driven by non-recurring legal
expenses incurred from the processing and fractionation joint
venture. Total operating expenses were $93
million, including $28 million
of depreciation and $4 million of
accretion of contingent acquisition consideration.
Net income for the first quarter of 2017 was $75 million, a 75% increase compared to the prior
year quarter. Net income per limited partner unit was $0.35 per unit, a 52% increase compared to the
prior year quarter. Adjusted EBITDA was $119
million, a 49% increase compared to the prior year quarter.
The increase in net income and Adjusted EBITDA is primarily driven
by increased throughput volumes and fresh water delivery
volumes. Adjusted EBITDA during the quarter did not include
cash distributions from unconsolidated affiliates related to
Stonewall Gathering LLC ("Stonewall") and the joint venture with
MarkWest Energy Partners, L.P. ("MarkWest"), a wholly owned
subsidiary of MPLX, due to the timing of the declaration of the
distributions. The Partnership estimates cash distributions
from unconsolidated affiliates for the full year 2017 to be
approximately $18 million to $22
million, consistent with previously provided 2017
guidance. Cash interest paid, net of cash previously reserved
for bond interest, was $9 million.
Cash reserved for bond interest during the quarter was $2 million and cash reserved for payment of
income tax withholding upon vesting of Antero Midstream
equity-based compensation awards was $2
million. Maintenance capital expenditures during the quarter
totaled $16 million and distributable
cash flow was $91 million, resulting
in a DCF coverage ratio of 1.4x.
Commenting on Antero Midstream's quarterly results, Michael Kennedy, CFO of Antero Midstream said,
"Antero Midstream continued to execute on its organically driven
business plan in the first quarter of 2017, reporting a 49%
year-over-year increase in adjusted EBITDA and peer-leading
distribution growth of 28%. Importantly, the first quarter places
Antero Midstream on track to achieve its previously provided 2017
adjusted EBITDA, distributable cash flow, distribution growth and
coverage guidance."
The following table reconciles net income to adjusted EBITDA and
distributable cash flow as used in this release (in thousands):
|
Three months
ended
|
March
31,
|
2016
|
|
2017
|
Net
income
|
$
|
42,918
|
|
$
|
75,091
|
Interest
expense
|
|
3,704
|
|
|
8,836
|
Depreciation
expense
|
|
23,823
|
|
|
27,536
|
Accretion of contingent
acquisition consideration
|
|
3,396
|
|
|
3,526
|
Equity-based
compensation
|
|
5,972
|
|
|
6,286
|
Equity in earnings of
unconsolidated affiliates
|
|
—
|
|
|
(2,231)
|
Distributions from
unconsolidated affiliates
|
|
—
|
|
|
—
|
Adjusted
EBITDA
|
$
|
79,813
|
|
$
|
119,044
|
Interest
paid(1)
|
|
(3,444)
|
|
|
(9,187)
|
Cash reserved for
payment of income tax withholding upon vesting of Antero Midstream
Partners LP equity-based compensation
awards(2)
|
|
(1,000)
|
|
|
(1,500)
|
Cash reserved for bond
interest (3)
|
|
—
|
|
|
(1,552)
|
Maintenance capital
expenditures(4)
|
|
(5,808)
|
|
|
(15,903)
|
Distributable cash
flow
|
$
|
69,561
|
|
$
|
90,902
|
|
|
|
|
|
|
Total distributions
declared
|
$
|
43,252
|
|
$
|
67,306
|
|
|
|
|
|
|
DCF coverage
ratio
|
|
1.6x
|
|
|
1.4x
|
|
|
1)
|
Interest for the
three months ended March 31, 2017 includes $20 million of cash
interest paid, partially offset by $11 million of cash reserved for
bond interest in the fourth quarter of 2016.
|
2)
|
Estimate of current
period portion of expected cash payment for income tax withholding
attributable to vesting of Midstream LTIP equity-based compensation
awards to be paid in the fourth quarter.
|
3)
|
Cash reserved for
bond interest expense on Antero Midstream's 5.375% senior notes
outstanding during the period that is paid on a semi-annual basis
on March 15th and September 15th of each
year.
|
4)
|
Maintenance capital
expenditures represent that portion of our estimated capital
expenditures associated with (i) the connection of new wells to our
gathering and compression systems that we believe will be necessary
to offset the natural production declines Antero Resources will
experience on all of its wells over time, and (ii) water
distribution to new wells necessary to maintain the average
throughput volume on our systems.
|
Gathering and Processing — During the first
quarter, Antero Midstream added a total of 305 MMcf/d of
compression capacity by placing in service two compressor stations
in the Marcellus Shale. Antero's current compression capacity
is approximately 1.4 Bcf/d in the Marcellus and Utica combined and
compression capacity was over 82% utilized on average in the first
quarter. Additionally, Antero Midstream connected 21 wells to its
Marcellus gathering system during the quarter. Antero
Resources is currently operating seven drilling rigs on Antero
Midstream dedicated acreage.
Water Handling and Treatment — Antero
Midstream's Marcellus and Utica fresh water delivery systems
serviced 34 well completions during the first quarter of 2017, a
13% increase from the first quarter of 2016 and 3% decrease
sequentially. Antero Resources is currently operating six
completion crews on Antero Midstream dedicated acreage. During the
quarter Antero Midstream continued construction on the Antero
Clearwater Facility, which is expected to be placed into service in
the fourth quarter of 2017.
Balance Sheet and Liquidity
As of March 31, 2017, Antero
Midstream had $200 million drawn on
its $1.5 billion bank credit
facility, resulting in approximately $1.3
billion in available credit facility capacity. Antero
Midstream's net debt to trailing twelve months adjusted EBITDA was
1.9x as of March 31, 2017. For
a reconciliation of consolidated net debt to consolidated total
debt, the most comparable GAAP measure, please read "Non-GAAP
Financial Measures."
Capital Spending
Capital expenditures, excluding investments in the processing
and fractionation joint venture were $104
million in the first quarter of 2017 as compared to
$86 million in the first quarter of
2016. Capital invested in gathering systems and facilities
was $67 million and capital invested
in water handling and treatment assets was $37 million, including $19
million invested in the Antero Clearwater Facility. Capital
invested in the MarkWest joint venture was $160 million during the quarter.
Conference Call
Antero Midstream will hold a call on Tuesday, May 9, 2017 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 Wednesday, May 17, 2017 at 10:00 am MT at 844-512-2921 (U.S.) or
412-317-6671 (International) using the passcode 10103995.
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 Wednesday, May 17, 2017 at 10:00 am MT.
Presentation
An updated presentation will be posted to the Partnership's
website before the May 9, 2017
conference call. The presentation can be found at
www.anteromidstream.com on the homepage. Information on the
Partnership's website does not constitute a portion of this press
release.
Non-GAAP Financial Measures
Antero Midstream views Adjusted EBITDA as an important indicator
of the Partnership's performance. Antero Midstream defines
Adjusted EBITDA as Net Income before interest expense, depreciation
expense, accretion of contingent acquisition consideration,
equity-based compensation expense, excluding equity in earnings of
unconsolidated affiliates, and including cash distributions from
unconsolidated affiliates.
Antero Midstream uses Adjusted EBITDA to assess:
- the financial performance of the Partnership's assets, without
regard to financing methods in the case of Adjusted EBITDA, capital
structure or historical cost basis;
- its operating performance and return on capital as compared to
other publicly traded partnerships in the midstream energy sector,
without regard to financing or capital structure; and
- the viability of acquisitions and other capital expenditure
projects.
The Partnership defines Distributable Cash Flow as Adjusted
EBITDA less interest paid, cash reserved for income tax withholding
payments upon vesting of equity-based compensation awards, cash
reserved for bond interest and ongoing maintenance capital
expenditures paid. Antero Midstream uses Distributable Cash
Flow as a performance metric to compare the cash generating
performance of the Partnership from period to period and to compare
the cash generating performance for specific periods to the cash
distributions (if any) that are expected to be paid to
unitholders. Distributable Cash Flow does not reflect changes
in working capital balances.
Adjusted EBITDA and Distributable Cash Flow are non-GAAP
financial measures. The GAAP measure most directly comparable
to Adjusted EBITDA and Distributable Cash Flow is Net Income.
The non-GAAP financial measures of Adjusted EBITDA and
Distributable Cash Flow should not be considered as alternatives to
the GAAP measure of Net Income. Adjusted EBITDA and
Distributable Cash Flow are not presentations made in accordance
with GAAP and have important limitations as an analytical tool
because they include some, but not all, items that affect Net
Income and Adjusted EBITDA. You should not consider Adjusted
EBITDA and Distributable Cash Flow in isolation or as a substitute
for analyses of results as reported under GAAP. Antero
Midstream's definition of Adjusted EBITDA and Distributable Cash
Flow may not be comparable to similarly titled measures of other
partnerships.
The following table reconciles consolidated total debt to
consolidated net debt as used in this release (in thousands):
|
|
March
31,
|
|
|
2017
|
|
|
|
|
Bank credit
facility
|
|
$
|
200,000
|
5.375% AM senior
notes due 2024
|
|
|
650,000
|
Net unamortized debt
issuance costs
|
|
|
(9,821)
|
Consolidated total
debt
|
|
$
|
840,179
|
Cash and cash
equivalents
|
|
|
—
|
Consolidated net
debt
|
|
$
|
840,179
|
The following table reconciles net income to adjusted EBITDA for
the twelve months ended March 31,
2017 as used in this release (in thousands):
|
|
Twelve Months
Ended
March
31,
|
|
|
2017
|
|
|
|
Net income
|
$
|
268,877
|
Add:
|
|
|
Interest expense
|
|
27,026
|
Depreciation expense
|
|
103,574
|
Accretion of
contingent acquisition consideration
|
|
16,619
|
Equity-based compensation
|
|
26,361
|
Equity in (earnings) of unconsolidated affiliate
|
|
(2,716)
|
Distributions from
unconsolidated affiliates
|
|
7,702
|
Gain on asset
sale
|
|
(3,859)
|
Adjusted
EBITDA
|
$
|
443,584
|
Antero Midstream is a limited partnership that owns, operates
and develops midstream gathering, compression, processing and
fractionation assets located in West
Virginia and Ohio, 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 and are based
upon a number of assumptions. 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 the assumptions underlying these
forward-looking statements will be accurate or the plans,
intentions or expectations expressed herein will be achieved.
For example, future acquisitions, dispositions or other strategic
transactions may materially impact the forecasted or targeted
results described in this release. 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 processing and
fresh water and waste water treatment businesses. 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, 2016.
For more information, contact Michael
Kennedy – CFO of Antero Midstream at (303) 357-6782 or
mkennedy@anteroresources.com.
ANTERO MIDSTREAM
PARTNERS LP
|
Condensed
Consolidated Balance Sheets
|
December 31, 2016 and March 31,
2017
|
(Unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
December 31,
2016
|
|
March 31,
2017
|
Assets
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
14,042
|
|
|
—
|
Accounts
receivable–Antero Resources
|
|
|
64,139
|
|
|
71,500
|
Accounts
receivable–third party
|
|
|
1,240
|
|
|
1,200
|
Prepaid
expenses
|
|
|
529
|
|
|
498
|
Total
current assets
|
|
|
79,950
|
|
|
73,198
|
Property and
equipment:
|
|
|
|
|
|
|
Gathering systems and
facilities
|
|
|
1,705,839
|
|
|
1,767,741
|
Water handling and
treatment systems
|
|
|
744,682
|
|
|
771,239
|
|
|
|
2,450,521
|
|
|
2,538,980
|
Less accumulated
depreciation
|
|
|
(254,642)
|
|
|
(282,178)
|
Property and
equipment, net
|
|
|
2,195,879
|
|
|
2,256,802
|
Investment in
unconsolidated affiliates
|
|
|
68,299
|
|
|
230,419
|
Other assets,
net
|
|
|
5,767
|
|
|
11,274
|
Total
assets
|
|
$
|
2,349,895
|
|
|
2,571,693
|
Liabilities and
Partners' Capital
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
16,979
|
|
|
13,512
|
Accounts payable–Antero
Resources
|
|
|
3,193
|
|
|
2,428
|
Accrued
liabilities
|
|
|
61,641
|
|
|
47,083
|
Other current
liabilities
|
|
|
200
|
|
|
187
|
Total current
liabilities
|
|
|
82,013
|
|
|
63,210
|
Long-term
liabilities:
|
|
|
|
|
|
|
Long-term
debt
|
|
|
849,914
|
|
|
840,179
|
Contingent acquisition
consideration
|
|
|
194,538
|
|
|
198,064
|
Other
|
|
|
620
|
|
|
567
|
Total
liabilities
|
|
|
1,127,085
|
|
|
1,102,020
|
|
|
|
|
|
|
|
Partners'
capital:
|
|
|
|
|
|
|
Common unitholders -
public (70,020 units and 76,924 units issued and outstanding
at December 31, 2016 and March 31,
2017, respectively)
|
|
|
1,458,410
|
|
|
1,689,681
|
Common unitholder -
Antero Resources (32,929 units and 108,870 units issued and
outstanding at December 31, 2016 and
March 31, 2017, respectively)
|
|
|
26,820
|
|
|
(231,561)
|
Subordinated unitholder
- Antero Resources (75,941 and zero units issued and
outstanding at December 31, 2016 and
March 31, 2017, respectively)
|
|
|
(269,963)
|
|
|
—
|
General
partner
|
|
|
7,543
|
|
|
11,553
|
Total
partners' capital
|
|
|
1,222,810
|
|
|
1,469,673
|
Total
liabilities and partners' capital
|
|
$
|
2,349,895
|
|
|
2,571,693
|
|
|
|
|
|
|
|
ANTERO MIDSTREAM
PARTNERS LP
|
Condensed
Consolidated Statements of Operations and Comprehensive
Income
|
Three Months Ended
March 31, 2016, and 2017
|
(Unaudited)
|
(In thousands, except
per unit amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2016
|
|
2017
|
|
|
|
Revenue:
|
|
|
|
|
|
|
Gathering and
compression–Antero Resources
|
|
$
|
69,359
|
|
|
91,524
|
Water handling and
treatment–Antero Resources
|
|
|
66,439
|
|
|
83,110
|
Gathering and
compression–third party
|
|
|
275
|
|
|
135
|
Total
revenue
|
|
|
136,073
|
|
|
174,769
|
Operating
expenses:
|
|
|
|
|
|
|
Direct
operating
|
|
|
49,141
|
|
|
47,554
|
General and
administrative (including $5,972 and $6,286 of equity-based
compensation in 2016 and 2017,
respectively)
|
|
|
13,091
|
|
|
14,457
|
Depreciation
|
|
|
23,823
|
|
|
27,536
|
Accretion of contingent
acquisition consideration
|
|
|
3,396
|
|
|
3,526
|
Total
operating expenses
|
|
|
89,451
|
|
|
93,073
|
Operating
income
|
|
|
46,622
|
|
|
81,696
|
Interest expense,
net
|
|
|
(3,704)
|
|
|
(8,836)
|
Equity in earnings of
unconsolidated affiliates
|
|
|
—
|
|
|
2,231
|
Net income and
comprehensive income
|
|
|
42,918
|
|
|
75,091
|
Net income attributable
to incentive distribution rights
|
|
|
(1,850)
|
|
|
(11,553)
|
Limited
partners' interest in net income
|
|
$
|
41,068
|
|
|
63,538
|
|
|
|
|
|
|
|
Net
income per limited partner unit - basic and diluted
|
|
$
|
0.23
|
|
|
0.35
|
|
|
|
|
|
|
|
Weighted
average limited partner units outstanding - basic
|
|
|
176,154
|
|
|
183,033
|
Weighted
average limited partner units outstanding - diluted
|
|
|
176,160
|
|
|
183,447
|
ANTERO MIDSTREAM
PARTNERS LP
|
Consolidated Results
of Segment Operations
|
Three Months Ended
March 31, 2016, and 2017
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water
|
|
|
|
|
|
Gathering and
|
|
Handling
and
|
|
Consolidated
|
|
|
Processing
|
|
Treatment
|
|
Total
|
Three months ended
March 31, 2016
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenue - Antero
Resources
|
|
$
|
69,359
|
|
|
66,439
|
|
|
135,798
|
Revenue – third
party
|
|
|
275
|
|
|
—
|
|
|
275
|
Total
revenues
|
|
|
69,634
|
|
|
66,439
|
|
|
136,073
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
7,619
|
|
|
41,522
|
|
|
49,141
|
General and
administrative (before equity-based compensation)
|
|
|
4,949
|
|
|
2,170
|
|
|
7,119
|
Equity-based
compensation
|
|
|
4,386
|
|
|
1,586
|
|
|
5,972
|
Depreciation
|
|
|
16,861
|
|
|
6,962
|
|
|
23,823
|
Accretion of
contingent acquisition consideration
|
|
|
—
|
|
|
3,396
|
|
|
3,396
|
Total
expenses
|
|
|
33,815
|
|
|
55,636
|
|
|
89,451
|
Operating
income
|
|
$
|
35,819
|
|
|
10,803
|
|
|
46,622
|
|
|
|
|
|
|
|
|
|
|
Segment and
consolidated Adjusted EBITDA
|
|
$
|
57,066
|
|
|
22,747
|
|
|
79,813
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2017
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenue - Antero
Resources
|
|
$
|
91,524
|
|
|
83,110
|
|
|
174,634
|
Revenue – third
party
|
|
|
135
|
|
|
—
|
|
|
135
|
Total
revenues
|
|
|
91,659
|
|
|
83,110
|
|
|
174,769
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
8,114
|
|
|
39,440
|
|
|
47,554
|
General and
administrative (before equity-based compensation)
|
|
|
5,549
|
|
|
2,622
|
|
|
8,171
|
Equity-based
compensation
|
|
|
4,589
|
|
|
1,697
|
|
|
6,286
|
Depreciation
|
|
|
19,700
|
|
|
7,836
|
|
|
27,536
|
Accretion of
contingent acquisition consideration
|
|
|
—
|
|
|
3,526
|
|
|
3,526
|
Total
expenses
|
|
|
37,952
|
|
|
55,121
|
|
|
93,073
|
Operating
income
|
|
$
|
53,707
|
|
|
27,989
|
|
|
81,696
|
|
|
|
|
|
|
|
|
|
|
Segment and
consolidated Adjusted EBITDA
|
|
$
|
77,996
|
|
|
41,048
|
|
|
119,044
|
ANTERO MIDSTREAM
PARTNERS LP
|
Selected Operating
Data
|
Three Months Ended
March 31, 2016, and 2017
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
of
|
|
|
|
|
|
Three months ended
March 31,
|
|
Increase
|
|
Percentage
|
|
|
2016
|
|
2017
|
|
(Decrease)
|
|
Change
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue - Antero
Resources
|
|
$
|
135,798
|
|
|
174,634
|
|
|
38,836
|
|
29
|
%
|
Revenue – third
party
|
|
|
275
|
|
|
135
|
|
|
(140)
|
|
(51)
|
%
|
Total
revenue
|
|
|
136,073
|
|
|
174,769
|
|
|
38,696
|
|
28
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
49,141
|
|
|
47,554
|
|
|
(1,587)
|
|
(3)
|
%
|
General and
administrative (before equity-based compensation)
|
|
|
7,119
|
|
|
8,171
|
|
|
1,052
|
|
15
|
%
|
Equity-based
compensation
|
|
|
5,972
|
|
|
6,286
|
|
|
314
|
|
5
|
%
|
Depreciation
|
|
|
23,823
|
|
|
27,536
|
|
|
3,713
|
|
16
|
%
|
Accretion of contingent
acquisition consideration
|
|
|
3,396
|
|
|
3,526
|
|
|
130
|
|
4
|
%
|
Total operating
expenses
|
|
|
89,451
|
|
|
93,073
|
|
|
3,622
|
|
4
|
%
|
Operating
income
|
|
|
46,622
|
|
|
81,696
|
|
|
35,074
|
|
75
|
%
|
Interest
expense
|
|
|
(3,704)
|
|
|
(8,836)
|
|
|
(5,132)
|
|
139
|
%
|
Equity in earnings of
unconsolidated affiliates
|
|
|
—
|
|
|
2,231
|
|
|
2,231
|
|
*
|
|
Net
income
|
|
$
|
42,918
|
|
|
75,091
|
|
|
32,173
|
|
75
|
%
|
Adjusted
EBITDA
|
|
$
|
79,813
|
|
|
119,044
|
|
|
39,231
|
|
49
|
%
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering—low pressure
(MMcf)
|
|
|
118,597
|
|
|
149,268
|
|
|
30,671
|
|
26
|
%
|
Gathering—high pressure
(MMcf)
|
|
|
111,162
|
|
|
142,313
|
|
|
31,151
|
|
28
|
%
|
Compression
(MMcf)
|
|
|
55,102
|
|
|
92,521
|
|
|
37,419
|
|
68
|
%
|
Condensate gathering
(MBbl)
|
|
|
270
|
|
|
15
|
|
|
(255)
|
|
(94)
|
%
|
Fresh water delivery
(MBbl)
|
|
|
8,857
|
|
|
13,363
|
|
|
4,506
|
|
51
|
%
|
Wastewater handling
(MBbl)
|
|
|
2,304
|
|
|
3,199
|
|
|
895
|
|
39
|
%
|
Wells serviced by fresh
water delivery
|
|
|
30
|
|
|
34
|
|
|
4
|
|
13
|
%
|
Gathering—low pressure
(MMcf/d)
|
|
|
1,303
|
|
|
1,659
|
|
|
356
|
|
26
|
%
|
Gathering—high pressure
(MMcf/d)
|
|
|
1,222
|
|
|
1,581
|
|
|
359
|
|
28
|
%
|
Compression
(MMcf/d)
|
|
|
606
|
|
|
1,028
|
|
|
422
|
|
68
|
%
|
Condensate gathering
(MBbl/d)
|
|
|
3
|
|
|
—
|
|
|
(3)
|
|
*
|
|
Fresh water delivery
(MBbl/d)
|
|
|
97
|
|
|
148
|
|
|
51
|
|
51
|
%
|
Wastewater handling
(MBbl/d)
|
|
|
25
|
|
|
36
|
|
|
11
|
|
39
|
%
|
Average realized
fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gathering—low
pressure fee ($/Mcf)
|
|
$
|
0.31
|
|
|
0.32
|
|
|
0.01
|
|
3
|
%
|
Average gathering—high
pressure fee ($/Mcf)
|
|
$
|
0.19
|
|
|
0.19
|
|
|
—
|
|
—
|
|
Average compression fee
($/Mcf)
|
|
$
|
0.19
|
|
|
0.19
|
|
|
—
|
|
—
|
|
Average
gathering—condensate fee ($/Bbl)
|
|
$
|
4.17
|
|
|
4.20
|
|
|
0.03
|
|
1
|
%
|
Average fresh water
delivery fee—Antero Resources($/Bbl)
|
|
$
|
3.67
|
|
|
3.72
|
|
|
0.05
|
|
1
|
%
|
ANTERO MIDSTREAM
PARTNERS LP
|
Consolidated
Statements of Cash Flows
|
Three Months Ended
March 31, 2016, and 2017
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
Three
months ended March 31,
|
|
2016
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
$
|
42,918
|
|
|
75,091
|
Adjustment to reconcile
net income to net cash provided by operating activities:
|
|
|
|
|
|
Depreciation
|
|
23,823
|
|
|
27,536
|
Accretion of
contingent acquisition consideration
|
|
3,396
|
|
|
3,526
|
Equity-based
compensation
|
|
5,972
|
|
|
6,286
|
Equity in earnings of
unconsolidated affiliates
|
|
—
|
|
|
(2,231)
|
Amortization of
deferred financing costs
|
|
366
|
|
|
631
|
Changes in assets and
liabilities:
|
|
|
|
|
|
Accounts
receivable–Antero Resources
|
|
2,267
|
|
|
(7,360)
|
Accounts
receivable–third party
|
|
1,415
|
|
|
41
|
Prepaid
expenses
|
|
(336)
|
|
|
31
|
Accounts
payable
|
|
116
|
|
|
2,504
|
Accounts
payable–Antero Resources
|
|
1,598
|
|
|
(765)
|
Accrued
liabilities
|
|
813
|
|
|
(5,542)
|
Net cash provided by
operating activities
|
|
82,348
|
|
|
99,748
|
Cash flows used in
investing activities:
|
|
|
|
|
|
Additions to gathering
systems and facilities
|
|
(48,686)
|
|
|
(66,559)
|
Additions to water
handling and treatment systems
|
|
(37,036)
|
|
|
(36,954)
|
Investment in
unconsolidated affiliates
|
|
—
|
|
|
(159,889)
|
Change in other
assets
|
|
(9,270)
|
|
|
(5,874)
|
Net cash used in
investing activities
|
|
(94,992)
|
|
|
(269,276)
|
Cash flows provided
by financing activities:
|
|
|
|
|
|
Distributions to
unitholders
|
|
(39,725)
|
|
|
(57,633)
|
Borrowings
(repayments) on bank credit facilities, net
|
|
60,000
|
|
|
(10,000)
|
Issuance of common
units, net of offering costs
|
|
—
|
|
|
223,119
|
Other
|
|
(36)
|
|
|
—
|
Net cash provided by
financing activities
|
|
20,239
|
|
|
155,486
|
Net increase
(decrease) in cash and cash equivalents
|
|
7,595
|
|
|
(14,042)
|
Cash and cash
equivalents, beginning of period
|
|
6,883
|
|
|
14,042
|
Cash and cash
equivalents, end of period
|
$
|
14,478
|
|
|
—
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
Cash paid during the
period for interest
|
$
|
3,686
|
|
|
19,668
|
Supplemental
disclosure of noncash investing activities:
|
|
|
|
|
|
Decrease in accrued
capital expenditures and accounts payable for property and
equipment
|
$
|
27,640
|
|
|
14,989
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/antero-midstream-reports-first-quarter-2017-financial-and-operational-results-300453472.html
SOURCE Antero Midstream Partners LP