CANONSBURG, Pa., Nov. 3, 2015 /PRNewswire/ -- CONE Midstream
Partners LP (NYSE: CNNX) ("CONE Midstream" or the "Partnership")
today reported financial and operational results for the three
months ended September 30,
2015.(1)
Third Quarter Results
Highlights of third quarter 2015 results attributable to the
Partnership include:
- Net income of $19.7 million
- Average daily throughput volumes of 642 billion Btu per day
(BBtu/d)
- Adjusted EBITDA(2) of $21.9
million
- Distributable cash flow (DCF)(2) of $19.6 million
- Cash distribution coverage of 1.45x on a declared basis
Management Comment
"We are pleased to report very strong third quarter financial
and operational results for CONE Midstream," said John T. Lewis, Chairman of the Board and Chief
Executive Officer of CONE Midstream GP LLC (the "General
Partner"). "Revenue and average throughput for the third
quarter both increased by approximately 13% over their respective
second quarter amounts as a result of new well connections and the
impact of debottlenecking projects coming on line. Our
continued focus on cost optimization yielded an approximate 19%
decrease in this quarter's operating expense as compared with the
second quarter. Our strong revenue growth combined with
reduced operating expense resulted in record quarterly net income
of $19.7 million, which represents a
sequential quarterly increase of approximately 32%. Our
entire operating team deserves recognition for their hard work to
produce these outstanding results through their successful efforts
in improving efficiency, reducing costs, and completing projects on
schedule and on budget.
"In light of our strong results for the quarter and current
anticipation for similar performance in the fourth quarter, we have
increased our expectations for the year. As a result, we are
raising our EBITDA and DCF guidance for full year 2015."
Quarterly Distribution
As previously announced, the Board of Directors of the General
Partner declared a quarterly cash distribution of $0.228 per
unit with respect to the third quarter of 2015. The
distribution payment will be made on November 13, 2015 to
unitholders of record at the close of business on November 9, 2015. The distribution, which equates
to an annual rate of $0.912 per unit,
represents an increase of 3.6% over the prior quarter and an
increase of 7.3% over the Minimum Quarterly Distribution as defined
in our Partnership Agreement.
Capital Investment and Resources
CONE Midstream's allocated third quarter 2015 share of
investment in expansion projects was $36.1
million. Total expansion capital investment at the three
development companies in which CONE Midstream holds controlling
interests was $90.8 million, with
individual development company totals as follows:
- Anchor Systems (Development Company 1): Expansion
investments totaled approximately $45.1
million and were primarily expended for continued gathering
system extensions to nine well pads in Greene and Washington Counties (PA), additional
compression at McQuay and Majorsville Stations, along with pipeline
expansion and an additional tap to relieve bottlenecks in the
North Nineveh field.
- Growth Systems (Development Company 2): Expansion
investments totaled approximately $2.2
million and primarily were expended on land and permitting
associated with future development in Harrison and Lewis Counties (WV) and
dehydration expansion at our Camden Facility.
- Additional Systems (Development Company 3): Expansion
investments totaled approximately $43.5
million for the continued construction of Shirley Station,
construction of our Sherwood South
gathering pipeline that connects the Oxford field in southern
Doddridge County to MarkWest Sherwood, and additional pipeline
construction in the Moundsville field and Allegheny County Airport
project areas.
CONE Midstream's respective share of maintenance capital
expenditures for the three development companies for the third
quarter 2015 was $2.3 million. Maintenance capital
expenditures in the aggregate for the development companies in
which CONE Midstream holds controlling interests totaled
$4.0 million.
As of September 30, 2015,
CONE Midstream had outstanding borrowings of $56.5 million under its $250 million revolving credit facility.
2015 Guidance
Based on current expectations, management is providing the
following updated guidance for 2015. Full year 2015 EBITDA
attributable to the Partnership, previously projected to be in the
range of $66 - $72 million, is now
expected to be in the range of $76 - $80
million. Full year Distributable Cash Flow
attributable to the Partnership, previously projected to be in the
range of $55 - $62 million, is now
expected to be in the range of $66 - $70
million. Capital expenditures attributable to the
Partnership, previously projected to be in the range of
$95 - $115 million, are now expected
to be in the range of $120 - $130
million of which approximately $8 -
$10 million will be for maintenance capital. CONE
Midstream's financial guidance is based on numerous assumptions
about future events and conditions and, therefore, could vary
materially from actual results. These estimates are meant to
provide guidance only and are subject to revision for acquisitions
or operating environment changes.
Third Quarter Financial and Operational Results Conference
Call
A conference call and webcast, during which management will
discuss third quarter 2015 financial and operational results, is
scheduled for November 3, 2015 at
1:00 p.m. Eastern Time. Reference
material for the call will be available on the "Events" page
of our website, www.conemidstream.com, shortly before the start of
the call. Prepared remarks by members of management will be
followed by a question and answer period. Interested parties
may listen via webcast by using the link posted on the "Events"
page of our website or at
www.webcaster4.com/Webcast/Page/998/11052. Participants who would
like to ask questions may join the conference by phone at
888-349-0097 (international 412-902-0126) five to ten minutes prior
to the scheduled start time (reference the CONE Midstream
call). An on-demand replay of the webcast will be also be
available at www.webcaster4.com/Webcast/Page/998/11052
shortly after the conclusion of the conference call. A
telephonic replay will be available through November 10, 2015 by dialing 877-344-7529
(international: 412-317-0088) and using the conference playback
number 10074249.
_______________
(1) Unless otherwise indicated, the reporting
measures included in this news release reflect the unallocated
total activity of the three development companies jointly owned by
the Partnership and CONE Gathering LLC ("CONE Gathering").
Because the Partnership owns a controlling interest in each of the
three development companies, it fully consolidates their financial
results. The Partnership's current financial interests in the
development companies are: 75% in the Anchor Systems, 5% in the
Growth Systems, and 5% in the Additional Systems. CONE
Gathering is a midstream joint venture formed by CONSOL Energy Inc.
and Noble Energy, Inc. and owns non-controlling interests in the
Partnership's development companies.
(2) EBITDA and DCF are not measures that are
recognized under accounting principles generally accepted in the
U.S. ("GAAP"). Definitions and reconciliations of these
non-GAAP measures to GAAP reporting measures appear in the
financial tables which follow.
Contact:
|
Stephen R.
Milbourne
|
|
CONE Investor
Relations
|
Phone:
|
724-485-4408
|
Email:
|
smilbourne@conemidstream.com
|
* * * * *
CONE Midstream Partners is a master limited partnership
formed by CONSOL Energy Inc. (NYSE: CNX) and Noble Energy,
Inc. (NYSE: NBL), referred to as our Sponsors, to own, operate,
develop and acquire natural gas gathering and other midstream
energy assets to service our Sponsors' production in the Marcellus
Shale in Pennsylvania and West
Virginia. Our assets include natural gas gathering pipelines
and compression and dehydration facilities, as well as condensate
gathering, collection, separation and stabilization facilities.
More information is available on our website
www.conemidstream.com.
* * * * *
This press release is intended to be a qualified notice to
nominees as provided for under Treasury Regulation Section
1.1446-4(b). Brokers and nominees should treat one hundred percent
(100.0%) of CONE Midstream's distributions to non-U.S.
investors as being attributed to income that is effectively
connected with a United States
trade or business. Accordingly, CONE Midstream's
distributions to non-U.S. investors are subject to federal income
tax withholding at the highest applicable effective tax rate.
Nominees, and not CONE Midstream, are treated as withholding agents
responsible for withholding on the distributions received by them
on behalf of foreign investors.
* * * * *
This press release contains forward-looking statements within
the meaning of the federal securities laws. Statements that
are predictive in nature, that depend upon or refer to future
events or conditions or that include the words "believe," "expect,"
"anticipate," "intend," "estimate" and other expressions that are
predictions of or indicate future events and trends and that do not
relate to historical matters identify forward-looking
statements. Forward-looking statements are not guarantees of
future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict, and there can be no
assurance that actual outcomes and results will not differ
materially from those expected by our management. Factors
that could cause our actual results to differ materially from the
results contemplated by such forward-looking statements include,
among others: the effects of changes in market prices of natural
gas, NGLs and crude oil on our Sponsors' drilling and development
plan on our dedicated acreage and the volumes of natural gas and
condensate that are produced on our dedicated acreage; changes in
our Sponsors' drilling and development plan in the Marcellus Shale;
our Sponsors' ability to meet their drilling and development plan
in the Marcellus Shale; the demand for natural gas and condensate
gathering services; changes in general economic conditions;
competitive conditions in our industry; actions taken by
third-party operators, gatherers, processors and transporters; our
ability to successfully implement our business plan; and our
ability to complete internal growth projects on time and on budget.
You should not place undue reliance on our forward-looking
statements. Although forward-looking statements reflect our
good faith beliefs at the time they are made, forward-looking
statements involve known and unknown risks, uncertainties and other
factors, including the factors described under "Risk Factors" and
"Forward-Looking Statements" in our Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q, which may cause our actual results,
performance or achievements to differ materially from anticipated
future results, performance or achievements expressed or implied by
such forward-looking statements. We undertake no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events, changed circumstances
or otherwise, unless required by law.
CONE MIDSTREAM
PARTNERS LP
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per unit data)
|
(unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue
|
|
|
|
|
|
|
|
Gathering Revenue —
Related Party
|
$
|
53,753
|
|
|
$
|
35,770
|
|
|
$
|
144,638
|
|
|
$
|
87,687
|
|
Total
Revenue
|
53,753
|
|
|
35,770
|
|
|
144,638
|
|
|
87,687
|
|
Expenses
|
|
|
|
|
|
|
|
Operating Expense —
Third Party
|
4,736
|
|
|
6,908
|
|
|
22,205
|
|
|
18,336
|
|
Operating Expense —
Related Party
|
8,095
|
|
|
6,030
|
|
|
22,079
|
|
|
18,553
|
|
General and
Administrative Expense — Third Party
|
968
|
|
|
107
|
|
|
3,533
|
|
|
936
|
|
General and
Administrative Expense — Related Party
|
2,413
|
|
|
1,599
|
|
|
6,385
|
|
|
2,957
|
|
Depreciation
Expense
|
3,769
|
|
|
1,808
|
|
|
10,430
|
|
|
5,105
|
|
Interest
Expense
|
158
|
|
|
—
|
|
|
270
|
|
|
—
|
|
Total
Expense
|
20,139
|
|
|
16,452
|
|
|
64,902
|
|
|
45,887
|
|
Net
Income
|
33,614
|
|
|
19,318
|
|
|
79,736
|
|
|
41,800
|
|
Less: Net Income
Attributable to Noncontrolling Interest
|
13,957
|
|
|
82
|
|
|
30,954
|
|
|
82
|
|
Net Income
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP
|
$
|
19,657
|
|
|
$
|
19,236
|
|
|
$
|
48,782
|
|
|
$
|
41,718
|
|
|
|
|
|
|
|
|
|
Calculation of
Limited Partner Interest in Net Income:
|
|
|
|
|
|
|
|
Net Income
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP (1)
|
$
|
19,657
|
|
|
$
|
127
|
|
|
$
|
48,782
|
|
|
$
|
127
|
|
Less: General Partner
Interest in Net Income
|
393
|
|
|
3
|
|
|
976
|
|
|
3
|
|
Limited Partner
Interest in Net Income
|
$
|
19,264
|
|
|
$
|
124
|
|
|
$
|
47,806
|
|
|
$
|
124
|
|
|
|
|
|
|
|
|
|
Net Income per
Limited Partner Unit - Basic
|
$
|
0.33
|
|
|
$
|
—
|
|
|
$
|
0.82
|
|
|
$
|
—
|
|
Net Income per
Limited Partner Unit - Diluted
|
$
|
0.33
|
|
|
$
|
—
|
|
|
$
|
0.82
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
Limited Partner Units
Outstanding - Basic
|
58,326
|
|
|
58,326
|
|
|
58,326
|
|
|
58,326
|
|
Limited Partner Unit
Outstanding - Diluted
|
58,333
|
|
|
58,326
|
|
|
58,331
|
|
|
58,326
|
|
|
|
|
|
|
|
|
|
Cash Distributions
Declared per Unit (2)
|
$
|
0.2280
|
|
|
N/A
|
|
$
|
0.6605
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes general and limited partner interest in net income since
closing of the IPO.
|
(2)
Represents the cash distributions declared related to the period
presented.
|
CONE MIDSTREAM PARTNERS LP
RECONCILIATION OF NET
INCOME TO EBITDA AND DISTRIBUTABLE CASH FLOW
(in
thousands)
Non-GAAP Financial Measures
Adjusted EBITDA
We define adjusted EBITDA as net income (loss) before net
interest expense, depreciation and amortization, as adjusted for
certain non-cash items which should not be included in the
calculation of distributable cash flow. Adjusted EBITDA is used as
a supplemental financial measure by management and by external
users of our financial statements, such as investors, industry
analysts, lenders and ratings agencies, to assess:
- our operating performance as compared to those of other
companies in the midstream energy industry, without regard to
financing methods, historical cost basis or capital structure;
- the ability of our assets to generate sufficient cash flow to
make distributions to our partners;
- our ability to incur and service debt and fund capital
expenditures; and
- the viability of acquisitions and other capital expenditure
projects and the returns on investment of various investment
opportunities.
We believe that the presentation of adjusted EBITDA provides
information that is useful to investors in assessing our financial
condition and results of operations. The GAAP measures most
directly comparable to adjusted EBITDA are net income and net cash
provided by operating activities. Adjusted EBITDA should not be
considered an alternative to net income, net cash provided by (used
in) operating activities or any other measure of financial
performance or liquidity presented in accordance with GAAP.
Adjusted EBITDA excludes some, but not all, items that affect net
income or net cash, and these measures may vary from those of other
companies. As a result, adjusted EBITDA as presented below may not
be comparable to similarly titled measures of other companies.
Distributable Cash Flow
We define distributable cash flow as adjusted EBITDA less net
cash interest paid and maintenance capital expenditures.
Distributable cash flow does not reflect changes in working capital
balances.
Distributable cash flow is used as a supplemental financial
measure by management and by external users of our financial
statements, such as investors, industry analysts, lenders and
ratings agencies, to assess:
- the ability of our assets to generate cash sufficient to
support our indebtedness and make future cash distributions to our
unitholders; and
- the attractiveness of capital projects and acquisitions and the
overall rates of return on alternative investment
opportunities.
We believe that the presentation of distributable cash flow
provides information useful to investors in assessing our financial
condition and results of operations. The GAAP measures most
directly comparable to distributable cash flow are net income and
net cash provided by operating activities. Distributable cash flow
should not be considered an alternative to net income, net cash
provided by (used in) operating activities or any other measure of
financial performance or liquidity presented in accordance with
GAAP. Distributable cash flow excludes some, but not all, items
that affect net income or net cash, and these measures may vary
from those of other companies. As a result, our distributable cash
flow may not be comparable to similarly titled measures of other
companies.
The partnership does not provide financial guidance for
projected net income or changes in working capital, and, therefore,
is unable to provide a reconciliation of its adjusted EBITDA and
distributable cash flow projections to net income, operating
income, or net cash flow provided by operating activities, the most
comparable financial measures calculated in accordance with
GAAP.
The following table presents a reconciliation of the
non-GAAP measures adjusted EBITDA and distributable cash flow with
the most directly comparable GAAP financial measures of net income
and net cash provided by operating activities.
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(unaudited)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Income
|
|
$
|
33,614
|
|
|
$
|
19,318
|
|
|
$
|
79,736
|
|
|
$
|
41,800
|
|
Interest
Expense
|
|
158
|
|
|
—
|
|
|
270
|
|
|
—
|
|
Depreciation
Expense
|
|
3,769
|
|
|
1,808
|
|
|
10,430
|
|
|
5,105
|
|
EBITDA
|
|
37,541
|
|
|
21,126
|
|
|
90,436
|
|
|
46,905
|
|
Non-Cash Unit-Based
Compensation Expense
|
|
118
|
|
|
—
|
|
|
310
|
|
|
—
|
|
Adjusted
EBITDA
|
|
37,659
|
|
|
21,126
|
|
|
90,746
|
|
|
46,905
|
|
Less:
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Noncontrolling Interest (1)
|
|
13,957
|
|
|
82
|
|
|
30,954
|
|
|
82
|
|
Interest Expense
Attributable to Noncontrolling Interest (1)
|
|
63
|
|
|
—
|
|
|
97
|
|
|
—
|
|
Depreciation Expense
Attributable to Noncontrolling Interest (1)
|
|
1,728
|
|
|
6
|
|
|
4,553
|
|
|
6
|
|
Adjusted EBITDA
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP
|
|
$
|
21,911
|
|
|
$
|
21,038
|
|
|
$
|
55,142
|
|
|
$
|
46,817
|
|
Less: Ongoing
Maintenance Capital Expenditures, Net of Expected
Reimbursements
|
|
2,291
|
|
|
1,644
|
|
|
6,430
|
|
|
3,344
|
|
Distributable Cash
Flow
|
|
$
|
19,620
|
|
|
$
|
19,394
|
|
|
$
|
48,712
|
|
|
$
|
43,473
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities
|
|
$
|
38,808
|
|
|
$
|
23,731
|
|
|
$
|
99,268
|
|
|
$
|
62,363
|
|
Interest
Expense
|
|
158
|
|
|
—
|
|
|
270
|
|
|
—
|
|
Other, Including
Changes in Working Capital
|
|
(1,307)
|
|
|
(2,605)
|
|
|
(8,792)
|
|
|
(15,458)
|
|
Adjusted
EBITDA
|
|
37,659
|
|
|
21,126
|
|
|
90,746
|
|
|
46,905
|
|
Less:
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Noncontrolling Interest (1)
|
|
13,957
|
|
|
82
|
|
|
30,954
|
|
|
82
|
|
Interest Expense
Attributable to Noncontrolling Interest (1)
|
|
63
|
|
|
—
|
|
|
97
|
|
|
—
|
|
Depreciation Expense
Attributable to Noncontrolling Interest (1)
|
|
1,728
|
|
|
6
|
|
|
4,553
|
|
|
6
|
|
Adjusted EBITDA
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP
|
|
$
|
21,911
|
|
|
$
|
21,038
|
|
|
$
|
55,142
|
|
|
$
|
46,817
|
|
Less: Ongoing
Maintenance Capital Expenditures, Net of Expected
Reimbursements
|
|
2,291
|
|
|
1,644
|
|
|
6,430
|
|
|
3,344
|
|
Distributable Cash
Flow
|
|
$
|
19,620
|
|
|
$
|
19,394
|
|
|
$
|
48,712
|
|
|
$
|
43,473
|
|
|
(1)
Noncontrolling interest amounts for the three and nine months
ended September 30, 2014 are for a one day period because the
closing of the initial public offering of CNNX occurred on
September 30, 2014.
|
The following table presents a reconciliation of the
non-GAAP measures adjusted EBITDA and distributable cash flow by
quarter and for the most recently completed twelve month period
with the most directly comparable GAAP financial measures, which
are net income and net cash provided by operating
activities.
|
(unaudited)
|
|
Q4
2014
|
|
Q1
2015
|
|
Q2
2015
|
|
Q3
2015
|
|
Twelve Months
Ended September 30, 2015
|
Net Income
|
|
$
|
23,027
|
|
|
$
|
21,216
|
|
|
$
|
24,905
|
|
|
$
|
33,614
|
|
|
$
|
102,762
|
|
Interest
Expense
|
|
24
|
|
|
65
|
|
|
47
|
|
|
158
|
|
|
294
|
|
Depreciation
Expense
|
|
2,225
|
|
|
2,994
|
|
|
3,667
|
|
|
3,769
|
|
|
12,655
|
|
EBITDA
|
|
25,276
|
|
|
24,275
|
|
|
28,619
|
|
|
37,541
|
|
|
115,711
|
|
Non-Cash Unit-Based
Compensation Expense
|
|
—
|
|
|
96
|
|
|
96
|
|
|
118
|
|
|
310
|
|
Adjusted
EBITDA
|
|
25,276
|
|
|
24,371
|
|
|
28,715
|
|
|
37,659
|
|
|
116,021
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Noncontrolling Interest (1)
|
|
7,776
|
|
|
7,004
|
|
|
9,993
|
|
|
13,957
|
|
|
38,730
|
|
Interest Expense
Attributable to Noncontrolling Interest (1)
|
|
—
|
|
|
20
|
|
|
14
|
|
|
63
|
|
|
97
|
|
Depreciation Expense
Attributable to Noncontrolling Interest (1)
|
|
857
|
|
|
1,166
|
|
|
1,659
|
|
|
1,728
|
|
|
5,410
|
|
Adjusted EBITDA
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP
|
|
$
|
16,643
|
|
|
$
|
16,181
|
|
|
$
|
17,049
|
|
|
$
|
21,911
|
|
|
$
|
71,784
|
|
Less: Ongoing
Maintenance Capital Expenditures, Net of Expected
Reimbursements
|
|
1,799
|
|
|
1,991
|
|
|
2,148
|
|
|
2,291
|
|
|
8,229
|
|
Distributable Cash
Flow
|
|
$
|
14,844
|
|
|
$
|
14,190
|
|
|
$
|
14,901
|
|
|
$
|
19,620
|
|
|
$
|
63,555
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities
|
|
$
|
22,331
|
|
|
$
|
10,206
|
|
|
$
|
50,254
|
|
|
$
|
38,808
|
|
|
$
|
121,599
|
|
Interest
Expense
|
|
24
|
|
|
65
|
|
|
47
|
|
|
158
|
|
|
294
|
|
Other, Including
Changes in Working Capital
|
|
2,921
|
|
|
14,100
|
|
|
(21,586)
|
|
|
(1,307)
|
|
|
(5,872)
|
|
Adjusted
EBITDA
|
|
25,276
|
|
|
24,371
|
|
|
28,715
|
|
|
37,659
|
|
|
116,021
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Noncontrolling Interest (1)
|
|
7,776
|
|
|
7,004
|
|
|
9,993
|
|
|
13,957
|
|
|
38,730
|
|
Interest Expense
Attributable to Noncontrolling Interest (1)
|
|
—
|
|
|
20
|
|
|
14
|
|
|
63
|
|
|
97
|
|
Depreciation Expense
Attributable to Noncontrolling Interest (1)
|
|
857
|
|
|
1,166
|
|
|
1,659
|
|
|
1,728
|
|
|
5,410
|
|
Adjusted EBITDA
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP
|
|
$
|
16,643
|
|
|
$
|
16,181
|
|
|
$
|
17,049
|
|
|
$
|
21,911
|
|
|
$
|
71,784
|
|
Less: Ongoing
Maintenance Capital Expenditures, Net of Expected
Reimbursements
|
|
1,799
|
|
|
1,991
|
|
|
2,148
|
|
|
2,291
|
|
|
8,229
|
|
Distributable Cash
Flow
|
|
$
|
14,844
|
|
|
$
|
14,190
|
|
|
$
|
14,901
|
|
|
$
|
19,620
|
|
|
$
|
63,555
|
|
Distributions
Declared (2)
|
|
$
|
12,784
|
|
|
$
|
12,647
|
|
|
$
|
13,094
|
|
|
$
|
13,570
|
|
|
$
|
52,095
|
|
Distribution Coverage
Ratio - Declared
|
|
1.16
|
x
|
|
1.12
|
x
|
|
1.14
|
x
|
|
1.45
|
x
|
|
1.22
|
x
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow
|
|
$
|
14,844
|
|
|
$
|
14,190
|
|
|
$
|
14,901
|
|
|
$
|
19,620
|
|
|
|
Distributions
Paid
|
|
$
|
—
|
|
|
$
|
12,784
|
|
|
$
|
12,647
|
|
|
$
|
13,094
|
|
|
|
Distribution Coverage
Ratio - Paid
|
|
—
|
|
|
1.11
|
x
|
|
1.18
|
x
|
|
1.50
|
x
|
|
|
|
(1)
Noncontrolling interest amounts for the three and nine months
ended September 30, 2014 are for a one day period because the
closing of the initial public offering of CNNX occurred on
September 30, 2014.
|
(2) The
Partnership's cash distribution for the period ended December 31,
2014 was $0.2148 per unit, which was prorated with respect to the
period commencing on September 30, 2014 (the closing date of
the Partnership's initial public offering) through December 31,
2014. The prorated amount corresponds to the Partnership's
minimum quarterly distribution of $0.2125 per unit, or $0.85 per
unit on an annualized basis.
|
CONE MIDSTREAM
PARTNERS LP
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except number of units)
|
|
|
(unaudited)
|
|
|
|
September 30,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash
|
$
|
1,205
|
|
|
$
|
3,252
|
|
Receivables — Related
Party
|
32,220
|
|
|
58,749
|
|
Inventory
|
18,916
|
|
|
—
|
|
Prepaid
Expenses
|
740
|
|
|
1,280
|
|
Other Current
Assets
|
164
|
|
|
164
|
|
Total Current
Assets
|
53,245
|
|
|
63,445
|
|
Property and
Equipment:
|
|
|
|
Property and
Equipment
|
853,999
|
|
|
639,735
|
|
Less — Accumulated
Depreciation
|
27,102
|
|
|
16,989
|
|
Property and
Equipment — Net
|
826,897
|
|
|
622,746
|
|
Other Non-Current
Assets
|
569
|
|
|
613
|
|
TOTAL
ASSETS
|
$
|
880,711
|
|
|
$
|
686,804
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
Payable
|
$
|
74,772
|
|
|
$
|
70,635
|
|
Accounts Payable —
Related Party
|
8,778
|
|
|
2,106
|
|
Total Current
Liabilities
|
83,550
|
|
|
72,741
|
|
Other
Liabilities:
|
|
|
|
Revolving Credit
Facility
|
56,500
|
|
|
31,300
|
|
Total
Liabilities
|
140,050
|
|
|
104,041
|
|
Partners'
Capital:
|
|
|
|
Common Units
(29,163,121 Units Issued and Outstanding at September 30, 2015 and
December 31, 2014)
|
394,948
|
|
|
389,612
|
|
Subordinated Units
(29,163,121 Units Issued and Outstanding at September 30, 2015 and
December 31, 2014)
|
(87,259)
|
|
|
(92,285)
|
|
General Partner
Interest
|
(3,567)
|
|
|
(3,772)
|
|
Partners' Capital
Attributable to CONE Midstream Partners LP
|
304,122
|
|
|
293,555
|
|
Noncontrolling Interest
|
436,539
|
|
|
289,208
|
|
Total
Partners' Capital
|
740,661
|
|
|
582,763
|
|
TOTAL LIABILITIES
AND PARTNERS' CAPITAL
|
$
|
880,711
|
|
|
$
|
686,804
|
|
CONE MIDSTREAM
PARTNERS LP
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months Ended
September 30,
|
|
2015
|
|
2014
|
Cash Flows from
Operating Activities:
|
|
|
|
Net Income
|
$
|
33,614
|
|
|
$
|
19,318
|
|
Adjustments to
Reconcile Net Income to Net Cash Provided By Operating
Activities:
|
|
|
|
Depreciation Expense
and Amortization of Debt Issuance Costs
|
3,810
|
|
|
1,808
|
|
Unit Based
Compensation
|
118
|
|
|
—
|
|
Changes in Operating
Assets:
|
|
|
|
Receivables — Related
Party
|
(10,894)
|
|
|
(4,846)
|
|
Inventory
|
(2,284)
|
|
|
—
|
|
Prepaid
Expenses
|
18
|
|
|
(482)
|
|
Non-Current
Assets
|
(80)
|
|
|
(168)
|
|
Changes in Operating
Liabilities:
|
|
|
|
Accounts
Payable
|
10,137
|
|
|
5,120
|
|
Accounts Payable —
Related Party
|
4,369
|
|
|
2,981
|
|
Net Cash Provided
by Operating Activities
|
38,808
|
|
|
23,731
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
Expenditures
|
(94,781)
|
|
|
(67,462)
|
|
Net Cash Used in
Investing Activities
|
(94,781)
|
|
|
(67,462)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Partners'
Investments
|
36,611
|
|
|
37,626
|
|
Proceeds from
Issuance of Common Units, Net of Offering Costs
|
—
|
|
|
412,741
|
|
Distribution of
Proceeds
|
—
|
|
|
(407,971)
|
|
Distributions to
Unitholders
|
(13,094)
|
|
|
—
|
|
Proceeds from
Revolver
|
33,500
|
|
|
—
|
|
Payment of Revolver
Fees
|
—
|
|
|
(685)
|
|
Net Cash Provided
By Financing Activities
|
57,017
|
|
|
41,711
|
|
Net Increase
(Decrease) in Cash
|
1,044
|
|
|
(2,020)
|
|
Cash at Beginning
of Period
|
161
|
|
|
9,368
|
|
Cash at End of
Period
|
$
|
1,205
|
|
|
$
|
7,348
|
|
Development
Companies Jointly Owned by CONE Midstream Partners LP and CONE
Gathering LLC
|
Operating Income
Summary, Selected Operating Statistics and Capital
Investment
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months Ended
September 30, 2015
|
|
Development
Company
|
|
Anchor
|
|
Growth
|
|
Additional
|
|
TOTAL
|
Income
Summary
|
|
|
|
|
|
|
|
Revenue
|
$
|
40,327
|
|
|
$
|
3,467
|
|
|
$
|
9,959
|
|
|
$
|
53,753
|
|
Expenses
|
14,647
|
|
|
1,881
|
|
|
3,611
|
|
|
20,139
|
|
Net
Income
|
25,680
|
|
|
1,586
|
|
|
6,348
|
|
|
33,614
|
|
Less: Net Income
Attributable to Noncontrolling Interest
|
6,420
|
|
|
1,506
|
|
|
6,031
|
|
|
13,957
|
|
Net Income
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP
|
$
|
19,260
|
|
|
$
|
80
|
|
|
$
|
317
|
|
|
$
|
19,657
|
|
|
|
|
|
|
|
|
|
Operating Statistics
- Gathered Volumes
|
|
|
|
|
|
|
|
Dry Gas
(BBtu/d)
|
480
|
|
|
82
|
|
|
6
|
|
|
568
|
|
Wet Gas
(BBtu/d)
|
348
|
|
|
10
|
|
|
207
|
|
|
565
|
|
Condensate
(MMcfe/d)
|
7
|
|
|
—
|
|
|
16
|
|
|
23
|
|
Total Gathered
Volumes
|
835
|
|
|
92
|
|
|
229
|
|
|
1,156
|
|
|
|
|
|
|
|
|
|
Total Volumes Net
to CONE Midstream Partners LP
|
626
|
|
|
5
|
|
|
11
|
|
|
642
|
|
|
|
|
|
|
|
|
|
Capital
Investment
|
|
|
|
|
|
|
|
Maintenance
Capital
|
$
|
2,990
|
|
|
$
|
346
|
|
|
$
|
628
|
|
|
$
|
3,964
|
|
Expansion
Capital
|
45,108
|
|
|
2,202
|
|
|
43,507
|
|
|
90,817
|
|
Total Capital
Investment
|
$
|
48,098
|
|
|
$
|
2,548
|
|
|
$
|
44,135
|
|
|
$
|
94,781
|
|
|
|
|
|
|
|
|
|
Capital Investment
Net to CONE Midstream Partners LP
|
|
|
|
|
|
|
|
Maintenance
Capital
|
$
|
2,243
|
|
|
$
|
17
|
|
|
$
|
31
|
|
|
$
|
2,291
|
|
Expansion
Capital
|
33,831
|
|
|
110
|
|
|
2,175
|
|
|
36,116
|
|
Total Capital
Investment Net to CONE Midstream Partners LP
|
$
|
36,074
|
|
|
$
|
127
|
|
|
$
|
2,206
|
|
|
$
|
38,407
|
|
Development
Companies Jointly Owned by CONE Midstream Partners LP and CONE
Gathering LLC
|
Operating Income
Summary, Selected Operating Statistics and Capital
Investment
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months Ended
September 30, 2014
|
|
Development
Company
|
|
Anchor
|
|
Growth
|
|
Additional
|
|
TOTAL
(1)
|
Income
Summary
|
|
|
|
|
|
|
|
Revenue
|
$
|
31,260
|
|
|
$
|
2,589
|
|
|
$
|
1,431
|
|
|
$
|
35,280
|
|
Expenses
|
13,736
|
|
|
1,599
|
|
|
861
|
|
|
16,196
|
|
Net
Income
|
17,524
|
|
|
990
|
|
|
570
|
|
|
19,084
|
|
Less: Net Income
Attributable to Noncontrolling Interest
|
42
|
|
|
36
|
|
|
4
|
|
|
82
|
|
Net Income
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP
|
$
|
17,482
|
|
|
$
|
954
|
|
|
$
|
566
|
|
|
$
|
19,002
|
|
|
|
|
|
|
|
|
|
Operating Statistics
- Gathered Volumes
|
|
|
|
|
|
|
|
Dry Gas
(BBtu/d)
|
415
|
|
|
55
|
|
|
—
|
|
|
470
|
|
Wet Gas
(BBtu/d)
|
258
|
|
|
—
|
|
|
31
|
|
|
289
|
|
Condensate
(MMcfe/d)
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
Total Gathered
Volumes
|
682
|
|
|
55
|
|
|
31
|
|
|
768
|
|
|
|
|
|
|
|
|
|
Total Volumes Net
to CONE Midstream Partners LP
|
512
|
|
|
3
|
|
|
2
|
|
|
517
|
|
|
|
|
|
|
|
|
|
Capital
Investment
|
|
|
|
|
|
|
|
Maintenance
Capital
|
$
|
1,634
|
|
|
$
|
8
|
|
|
$
|
2
|
|
|
$
|
1,644
|
|
Expansion
Capital
|
25,045
|
|
|
3,836
|
|
|
33,655
|
|
|
62,536
|
|
Total Capital
Investment
|
$
|
26,679
|
|
|
$
|
3,844
|
|
|
$
|
33,657
|
|
|
$
|
64,180
|
|
|
|
|
|
|
|
|
|
Capital Investment
Net to CONE Midstream Partners LP
|
|
|
|
|
|
|
|
Maintenance
Capital
|
$
|
1,226
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,226
|
|
Expansion
Capital
|
18,784
|
|
|
192
|
|
|
1,683
|
|
|
20,659
|
|
Total Capital
Investment Net to CONE Midstream Partners LP
|
$
|
20,010
|
|
|
$
|
192
|
|
|
$
|
1,683
|
|
|
$
|
21,885
|
|
|
(1)
Total consists of the 100% activity of the three
Development Companies (Anchor, Growth and Additional) which CONE
Midstream Partners LP owns a controlling interest of 75%, 5% and
5%, respectively. Other systems that were part of the Predecessor,
CONE Gathering LLC, that have been included in the Historical
Financial statements as the Predecessor are excluded from the table
above, as these systems are not included in the consolidated
operations of the Partnership.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cone-midstream-reports-strong-third-quarter-results-and-increases-full-year-2015-guidance-300170871.html
SOURCE CONE Midstream Partners LP