HOUSTON, April 1, 2019
/PRNewswire/ -- American Midstream Partners, LP (NYSE:
AMID) ("American Midstream" or the "Partnership") today reported
financial and operational results for the three and twelve months
ended December 31, 2018. Net
loss attributable to the Partnership was $7.8 million for the year ended December 31, 2018 compared to $223.0 million for 2017. Adjusted EBITDA
(1) was $184.6 million for
the year ended December 31, 2018,
compared to $176.4 million for
2017. The Partnership's distributable cash flow was
$69.8 million for the year ended
December 31, 2018, compared to
$91.1 million for 2017.
SEGMENT
PERFORMANCE
|
|
|
|
|
|
Three months
ended
December
31,
|
|
Twelve months
ended
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Offshore Pipelines
and Services
|
$45,636
|
|
$22,871
|
|
$134,106
|
|
$103,970
|
Gas Gathering and
Processing Services
|
11,847
|
|
10,946
|
|
51,888
|
|
48,053
|
Liquid Pipelines and
Services
|
10,771
|
|
9,698
|
|
40,542
|
|
39,870
|
Natural Gas
Transportation Services
|
8,746
|
|
6,306
|
|
36,130
|
|
23,005
|
Terminalling
Services
|
3,172
|
|
6,869
|
|
22,814
|
|
29,956
|
Total Segment Gross
Margin (1)
|
$80,172
|
|
$56,690
|
|
$285,480
|
|
$244,854
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA
and Total Segment Gross Margin are Non-GAAP supplemental financial
measures. Please read "Non-GAAP Financial Measures" in this
press release.
|
Offshore Pipelines and Services
Segment gross margin was $45.6
million for the three months ended December 31, 2018,
an increase of 100% compared to the same period in 2017. The
increase was primarily a result of a 32% increase in throughput
volumes on the Partnership's offshore consolidated assets, as well
as rate and imbalance adjustments on the Destin and Okeanos
pipelines. Quarterly cash distributions from unconsolidated
affiliates, Delta House, Destin and
Okeanos, were $29.8 million for the
three months ended December 31, 2018,
compared to $29.6 million for the
same period in 2017.
Gas Gathering and Processing Services
Segment gross margin was $11.8
million for the three months ended December 31, 2018,
an increase of 8% compared to the same period in 2017. The
increase reflected producer development activity across the
Partnership's Gas Gathering and Processing Services segment, which
contributed to a 20% increase in throughput volumes on the
Partnership's Permian Basin assets compared to the same period in
2017.
Liquid Pipelines and Services
Segment gross margin was $10.8 million for the three
months ended December 31, 2018, an increase of 11% as
compared to the same period in 2017. The Partnership
benefited from increased producer activity across the segment,
which contributed to an 11% increase in throughput volumes on the
Partnership's consolidated assets compared to the same period in
2017. Quarterly cash distributions from unconsolidated
affiliates were $3.7 million, a 60%
increase compared to the same period in 2017. The increase in
distributions was driven by a 43% increase in throughput volumes,
primarily attributable to the Partnership's interest in the Cayenne
pipeline, which commenced operation in January of 2018.
Natural Gas Transportation Services
Segment gross margin was $8.7
million for the three months ended December 31, 2018, a
39% increase compared to the same period in 2017. The
increase was primarily attributable to the acquisition of
Trans-Union pipeline in November 2017. Throughput volumes
grew 43% compared to the same period in 2017.
Terminalling Services
Segment gross margin was $3.2
million for the three months ended December 31, 2018, a
decrease of 54% compared to the same period in 2017. The
decrease in gross margin was primarily a result of the sale of the
Partnership's Marine Products Terminals, on August 1, 2018, for approximately $210 million and the Partnership's Refined
Products Terminals, on December 20,
2018, for approximately $125
million.
Pending Merger
On March 18, 2019, the Partnership
announced it had entered into a definitive agreement and plan of
merger with an affiliate (the "Purchaser") of ArcLight Energy
Partners Fund V, L.P. ("ArcLight"). The Purchaser will acquire, for
cash, in a merger transaction, all outstanding common units of the
Partnership not already held by affiliates of ArcLight, at a price
of $5.25 per common unit.
The merger is expected to close in the second quarter of
2019. The merger is subject to customary closing conditions,
including an amendment to the Partnership's credit agreement.
The Partnership will not make any cash distributions on its common
units or preferred units prior to the closing of the merger.
Upon closing of the merger, the Partnership will be a wholly
owned subsidiary of the Purchaser and its common units will cease
to be publicly traded.
As a result of the pending merger, the Partnership will not hold
a conference call in connection with the issuance of this earnings
release.
CAPITAL MANAGEMENT
As of December 31, 2018, the Partnership had approximately
$1.0 billion of total debt
outstanding, comprising of $515
million outstanding under its revolving credit facility,
$425 million in outstanding 8.50%
senior unsecured notes and $88
million in outstanding non-recourse senior secured notes.
The Partnership had a consolidated total leverage ratio of
approximately 5.8 times at December
31, 2018.
For the three months ended December 31, 2018, capital
expenditures totaled approximately $24
million, including approximately $6
million of maintenance capital expenditures. For the
twelve months ended December 31, 2018, capital expenditures
totaled approximately $97 million,
including approximately $16 million
of maintenance capital expenditures.
Non-GAAP Financial Measures
This press release and the accompanying tables include
supplemental non-GAAP financial measures, including "Adjusted
EBITDA," "Total Segment Gross Margin," "Operating
Margin," and "Distributable Cash Flow." For definitions
and required reconciliations of supplemental non-GAAP financial
measures to the nearest comparable GAAP financial measures, please
read "Note About Non-GAAP Financial Measures" set forth in a later
section of this press release.
About American Midstream Partners, LP
American Midstream Partners, LP is a limited partnership formed
to provide critical midstream infrastructure that links producers
of natural gas, crude oil, NGLs and condensate to end-use markets.
American Midstream's assets are strategically located in some of
the most prolific offshore and onshore basins in the Permian, Eagle
Ford, East Texas, Bakken and Gulf
Coast. American Midstream owns or has an ownership interest in
approximately 5,100 miles of interstate and intrastate pipelines,
as well as ownership in gas processing plants, fractionation
facilities, an offshore semisubmersible floating production system
with nameplate processing capacity of 90 MBbl/d of crude oil and
220 MMcf/d of natural gas; and terminal sites with approximately
3.0 MMBbls of storage capacity.
For more information about American Midstream Partners, LP,
visit: www.americanmidstream.com. The content of our website is not
part of this release.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act of 1934, as amended. We have used the words
"could," "expect," "intend," "may," "will," "would," 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. Many of
the factors that will determine these results are beyond our
ability to control or predict. These factors include actions by
ArcLight, lenders, regulatory agencies, and other third parties,
changes in market conditions, and information described in our
public disclosure and filings with the SEC, including the risk
factors and other information that will be included in our Annual
Report on Form 10-K for the year ended 2018. 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 such statements for any reason, except as
required by law.
Investor Contact
American Midstream Partners, LP
Mark Schuck
Director of Investor Relations
(346) 241-3497
ir@americanmidstream.com
American Midstream
Partners, LP and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
9,069
|
|
|
$
|
8,782
|
|
Restricted
cash
|
|
30,868
|
|
|
20,352
|
|
Accounts receivable,
net of allowance for doubtful accounts of $591 and $225 as
of December 31, 2018
and December 31, 2017, respectively
|
|
76,632
|
|
|
98,132
|
|
Inventory and other
current assets
|
|
27,422
|
|
|
26,386
|
|
Total current assets
|
|
143,991
|
|
|
153,652
|
|
Property, plant and
equipment, net
|
|
997,708
|
|
|
1,095,585
|
|
Goodwill
|
|
51,723
|
|
|
128,866
|
|
Restricted cash -
long term
|
|
5,083
|
|
|
5,045
|
|
Intangible and other
assets, net
|
|
133,992
|
|
|
174,010
|
|
Investment in
unconsolidated affiliates
|
|
337,796
|
|
|
348,434
|
|
Other assets,
net
|
|
17,403
|
|
|
17,874
|
|
Total
assets
|
|
$
|
1,687,696
|
|
|
$
|
1,923,466
|
|
Liabilities,
Equity and Partners' Capital
|
|
|
|
|
|
|
|
|
|
Total current
liabilities (1)
|
|
$
|
649,892
|
|
|
$
|
137,493
|
|
Asset retirement
obligations
|
|
67,451
|
|
|
66,194
|
|
Other long-term
liabilities
|
|
18,491
|
|
|
2,080
|
|
Long-term
debt
|
|
500,739
|
|
|
1,201,456
|
|
Deferred tax
liability
|
|
1,421
|
|
|
8,123
|
|
Total
liabilities
|
|
1,237,994
|
|
|
1,415,346
|
|
Convertible preferred
units
|
|
324,624
|
|
|
317,180
|
|
Total Equity and
partners' capital
|
|
125,078
|
|
|
190,940
|
|
Total liabilities,
equity and partners' capital
|
|
$
|
1,687,696
|
|
|
$
|
1,923,466
|
|
__________________________
|
|
|
|
|
(1)
Total current liabilities include $514.8 million outstanding under
the Partnership's revolving credit facility, which matures
September
2019.
|
American Midstream
Partners, LP and Subsidiaries
|
Condensed
Consolidated Statements of Operations
|
(Unaudited, in
thousands, except for per unit amounts)
|
|
|
|
|
|
|
|
Three months
ended
December
31,
|
|
Twelve months
ended
December
31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenues
|
|
$
|
176,962
|
|
|
$
|
163,037
|
|
|
$
|
805,354
|
|
|
$
|
651,435
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
130,092
|
|
|
114,485
|
|
|
592,040
|
|
|
457,371
|
|
Direct operating
expenses
|
|
22,082
|
|
|
25,437
|
|
|
87,677
|
|
|
82,256
|
|
Corporate
expenses
|
|
19,786
|
|
|
27,489
|
|
|
89,706
|
|
|
112,058
|
|
Termination fee
|
|
—
|
|
|
—
|
|
|
17,000
|
|
|
—
|
|
Depreciation, amortization
and accretion
|
|
20,897
|
|
|
24,614
|
|
|
87,171
|
|
|
103,448
|
|
Gain on sale of assets,
net
|
|
4,373
|
|
|
—
|
|
|
(95,118)
|
|
|
(4,063)
|
|
Impairment of long-lived
assets and intangible assets
|
|
1,610
|
|
|
116,609
|
|
|
1,610
|
|
|
116,609
|
|
Impairment of
goodwill
|
|
—
|
|
|
77,961
|
|
|
—
|
|
|
77,961
|
|
Total operating expenses
|
|
198,840
|
|
|
386,595
|
|
|
780,086
|
|
|
945,640
|
|
Operating income
(loss)
|
|
(21,878)
|
|
|
(223,558)
|
|
|
25,268
|
|
|
(294,205)
|
|
Other income
(expense), net:
|
|
|
|
|
|
|
|
|
Interest expense, net of
capitalized interest
|
|
(26,576)
|
|
|
(15,428)
|
|
|
(82,410)
|
|
|
(66,465)
|
|
Other income
(expense), net
|
|
498
|
|
|
4,006
|
|
|
560
|
|
|
36,254
|
|
Earnings in
unconsolidated affiliates
|
|
34,187
|
|
|
13,269
|
|
|
81,929
|
|
|
63,050
|
|
Income (loss) from
continuing operations before income taxes
|
|
(13,769)
|
|
|
(221,711)
|
|
|
25,347
|
|
|
(261,366)
|
|
Income tax
expense
|
|
(950)
|
|
|
1,376
|
|
|
(32,995)
|
|
|
(1,235)
|
|
Income (loss) from
continuing operations
|
|
(14,719)
|
|
|
(220,335)
|
|
|
(7,648)
|
|
|
(262,601)
|
|
Income from
discontinued operations, including gain on sale
|
|
—
|
|
|
1,910
|
|
|
—
|
|
|
44,095
|
|
Net income
(loss)
|
|
(14,719)
|
|
|
(218,425)
|
|
|
(7,648)
|
|
|
(218,506)
|
|
Net income
attributable to noncontrolling interests
|
|
(33)
|
|
|
(1,087)
|
|
|
(116)
|
|
|
(4,473)
|
|
Net income (loss)
attributable to the Partnership
|
|
$
|
(14,752)
|
|
|
$
|
(219,512)
|
|
|
$
|
(7,764)
|
|
|
$
|
(222,979)
|
|
|
|
|
|
|
|
|
|
|
Limited Partners' net
income (loss) per common unit:
|
|
|
|
|
|
|
|
|
Basic and
diluted:
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
(0.41)
|
|
|
$
|
(4.32)
|
|
|
$
|
(0.75)
|
|
|
$
|
(5.70)
|
|
Income from
discontinued operations
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
0.85
|
|
Net income (loss) per
common unit
|
|
$
|
(0.41)
|
|
|
$
|
(4.29)
|
|
|
$
|
(0.75)
|
|
|
$
|
(4.85)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common units outstanding
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
53,239
|
|
|
52,697
|
|
|
53,136
|
|
|
52,043
|
|
American Midstream
Partners, LP and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited, in
thousands)
|
|
|
|
|
|
Twelve months
ended
December
31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
5,175
|
|
|
$
|
9,620
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
248,800
|
|
|
(40,491)
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(243,134)
|
|
|
(264,180)
|
|
|
|
|
|
|
Net decrease in Cash,
Cash equivalents, and Restricted cash
|
|
10,841
|
|
|
(295,051)
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
Beginning of
period
|
|
34,179
|
|
|
329,230
|
|
End of
period
|
|
$
|
45,020
|
|
|
$
|
34,179
|
|
American Midstream
Partners, LP and Subsidiaries
|
Reconciliation of
Net income (loss) attributable to the Partnership to
|
Adjusted EBITDA
and Distributable Cash Flow
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
Three months
ended
December
31,
|
|
Twelve months
ended
December
31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Reconciliation of
Net loss attributable to the Partnership to Adjusted
EBITDA and
DCF:
|
|
|
|
|
|
|
|
|
Net loss
attributable to the Partnership
|
|
$
|
(14,752)
|
|
|
$
|
(219,512)
|
|
|
$
|
(7,764)
|
|
|
$
|
(222,979)
|
|
Depreciation,
amortization and accretion
|
|
20,897
|
|
|
24,593
|
|
|
87,171
|
|
|
102,766
|
|
Interest expense, net
of capitalized interest
|
|
26,576
|
|
|
15,428
|
|
|
82,410
|
|
|
66,465
|
|
Amortization of
deferred financing costs
|
|
(2,343)
|
|
|
(1,507)
|
|
|
(7,485)
|
|
|
(5,117)
|
|
Gain on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,870)
|
|
Debt issuance costs
paid
|
|
2,276
|
|
|
3,470
|
|
|
6,977
|
|
|
5,705
|
|
Unrealized loss
(gain) on commodity derivatives, net
|
|
(350)
|
|
|
(498)
|
|
|
2
|
|
|
—
|
|
Non-cash equity
compensation expense
|
|
1,112
|
|
|
1,965
|
|
|
4,641
|
|
|
8,032
|
|
Transaction
expenses
|
|
5,869
|
|
|
11,705
|
|
|
28,791
|
|
|
42,860
|
|
Termination
fee
|
|
—
|
|
|
—
|
|
|
17,000
|
|
|
—
|
|
Income tax
expense
|
|
950
|
|
|
(1,376)
|
|
|
32,995
|
|
|
1,235
|
|
Impairment of
long-lived assets and intangible assets
|
|
1,610
|
|
|
116,609
|
|
|
1,610
|
|
|
116,609
|
|
Impairment of
goodwill
|
|
—
|
|
|
77,961
|
|
|
—
|
|
|
77,961
|
|
Discontinued
operations
|
|
—
|
|
|
(965)
|
|
|
—
|
|
|
(37,212)
|
|
Distributions from
unconsolidated affiliates
|
|
33,453
|
|
|
31,870
|
|
|
97,713
|
|
|
90,846
|
|
General Partner
contribution
|
|
—
|
|
|
—
|
|
|
17,732
|
|
|
34,614
|
|
Earnings in
unconsolidated affiliates
|
|
(34,187)
|
|
|
(13,269)
|
|
|
(81,929)
|
|
|
(63,050)
|
|
Other
income
|
|
257
|
|
|
(153)
|
|
|
(132)
|
|
|
(409)
|
|
(Gain) loss on sale
of assets, net
|
|
4,373
|
|
|
—
|
|
|
(95,118)
|
|
|
(4,063)
|
|
Gain on revaluation
of equity interest
|
|
—
|
|
|
(3,616)
|
|
|
—
|
|
|
(35,999)
|
|
Adjusted EBITDA
|
|
$
|
45,741
|
|
|
$
|
42,705
|
|
|
$
|
184,614
|
|
|
$
|
176,394
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
(26,576)
|
|
|
(15,428)
|
|
|
(82,410)
|
|
|
(66,465)
|
|
Amortization of
deferred financing costs
|
|
2,343
|
|
|
1,507
|
|
|
7,485
|
|
|
5,117
|
|
Unrealized (loss)
gain on interest rate swaps
|
|
7,277
|
|
|
(2,897)
|
|
|
1,154
|
|
|
(1,109)
|
|
Gain on extinguishment
of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,870
|
|
Letter of credit
fees
|
|
—
|
|
|
307
|
|
|
21
|
|
|
517
|
|
Maintenance
capital
|
|
(6,339)
|
|
|
(2,322)
|
|
|
(15,970)
|
|
|
(8,892)
|
|
Preferred unit
distributions
|
|
—
|
|
|
—
|
|
|
(25,061)
|
|
|
(16,311)
|
|
Distributable cash flow
|
|
$
|
22,446
|
|
|
$
|
23,872
|
|
|
$
|
69,833
|
|
|
$
|
91,121
|
|
|
|
|
|
|
|
|
|
|
American Midstream
Partners, LP and Subsidiaries
|
Reconciliation of
Total Gross Margin to Net loss attributable to the
Partnership
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
Three months
ended
December
31,
|
|
Twelve months
ended
December
31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Total Segment
Gross Margin
|
|
$
|
80,172
|
|
|
$
|
56,690
|
|
|
$
|
285,480
|
|
|
$
|
244,854
|
|
Direct operating
expenses
|
|
(21,297)
|
|
|
(21,047)
|
|
|
(78,012)
|
|
|
(70,385)
|
|
Operating
margin
|
|
58,875
|
|
|
35,643
|
|
|
207,468
|
|
|
174,469
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) on
commodity derivatives, net
|
|
2,566
|
|
|
(86)
|
|
|
2,036
|
|
|
(119)
|
|
Corporate
expenses
|
|
(19,784)
|
|
|
(27,488)
|
|
|
(89,706)
|
|
|
(112,058)
|
|
Termination
fee
|
|
—
|
|
|
—
|
|
|
(17,000)
|
|
|
—
|
|
Depreciation,
amortization and accretion
|
|
(20,897)
|
|
|
(24,615)
|
|
|
(87,171)
|
|
|
(103,448)
|
|
Gain (loss) on sale
of assets, net
|
|
(4,373)
|
|
|
—
|
|
|
95,118
|
|
|
4,063
|
|
Impairment of
long-lived assets and intangible assets
|
|
(1,610)
|
|
|
(116,609)
|
|
|
(1,610)
|
|
|
(116,609)
|
|
Impairment of
goodwill
|
|
—
|
|
|
(77,961)
|
|
|
—
|
|
|
(77,961)
|
|
Interest expense, net
of capitalized interest
|
|
(26,576)
|
|
|
(15,428)
|
|
|
(82,410)
|
|
|
(66,465)
|
|
Other income,
net
|
|
498
|
|
|
4,005
|
|
|
560
|
|
|
36,254
|
|
Other, net
|
|
(2,468)
|
|
|
829
|
|
|
(1,938)
|
|
|
508
|
|
Income tax
expense
|
|
(950)
|
|
|
1,375
|
|
|
(32,995)
|
|
|
(1,235)
|
|
Income (loss) from
discontinued operations, including gain on sale
|
|
—
|
|
|
1,910
|
|
|
—
|
|
|
44,095
|
|
Net income
attributable to noncontrolling interest
|
|
(33)
|
|
|
(1,087)
|
|
|
(116)
|
|
|
(4,473)
|
|
Net income (loss)
attributable to the Partnership
|
|
$
|
(14,752)
|
|
|
$
|
(219,512)
|
|
|
$
|
(7,764)
|
|
|
$
|
(222,979)
|
|
American Midstream
Partners, LP and Subsidiaries
|
Segment Financial
and Operating Data
|
(Unaudited, in
thousands, except for operating and pricing data)
|
|
|
|
|
|
|
|
Three months
ended
December
31,
|
|
Twelve months
ended
December
31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Segment Financial
and Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Offshore
Pipelines and Services Segment
|
|
|
|
|
|
|
|
|
Financial
data:
|
|
|
|
|
|
|
|
|
Segment gross margin
|
|
$
|
45,636
|
|
|
$
|
22,871
|
|
|
$
|
134,106
|
|
|
$
|
103,970
|
|
Direct operating
expenses
|
|
7,373
|
|
|
6,988
|
|
|
30,578
|
|
|
17,040
|
|
Segment operating
margin
|
|
$
|
38,263
|
|
|
$
|
15,883
|
|
|
$
|
103,528
|
|
|
$
|
86,930
|
|
|
|
|
|
|
|
|
|
|
Distributions:
|
|
|
|
|
|
|
|
|
Destin/Okeanos
|
|
$
|
12,726
|
|
|
$
|
12,000
|
|
|
$
|
46,205
|
|
|
$
|
38,667
|
|
Delta House
|
|
17,053
|
|
|
17,572
|
|
|
40,385
|
|
|
43,746
|
|
Total
|
|
$
|
29,779
|
|
|
$
|
29,572
|
|
|
$
|
86,590
|
|
|
$
|
82,413
|
|
|
|
|
|
|
|
|
|
|
Operating data:
|
|
|
|
|
|
|
|
|
Average throughput (MMcfe/d)
|
|
557.2
|
|
|
422.8
|
|
|
498.1
|
|
|
497.1
|
|
Average Destin/Okeanos throughput (MMcf/d)
|
|
1,038.5
|
|
|
1,035.1
|
|
|
1,029.9
|
|
|
1,094.0
|
|
Average Delta House throughput (MBoe/d)
|
|
89.4
|
|
|
63.3
|
|
|
68.7
|
|
|
101.2
|
|
|
|
|
|
|
|
|
|
|
Gas Gathering
and Processing Services Segment
|
|
|
|
|
|
|
|
|
Financial
data:
|
|
|
|
|
|
|
|
|
Segment gross
margin
|
|
$
|
11,847
|
|
|
$
|
10,946
|
|
|
$
|
51,888
|
|
|
$
|
48,053
|
|
Direct operating
expenses
|
|
8,246
|
|
|
8,028
|
|
|
28,000
|
|
|
34,040
|
|
Segment operating margin
|
|
$
|
3,601
|
|
|
$
|
2,918
|
|
|
$
|
23,888
|
|
|
$
|
14,013
|
|
Operating
data:
|
|
|
|
|
|
|
|
|
Average throughput
(MMcf/d)
|
|
176.8
|
|
|
192.7
|
|
|
170.8
|
|
|
202.0
|
|
|
|
|
|
|
|
|
|
|
Liquid
Pipelines & Services
|
|
|
|
|
|
|
|
|
Financial
data:
|
|
|
|
|
|
|
|
|
Segment gross margin
|
|
$
|
10,771
|
|
|
$
|
9,698
|
|
|
$
|
40,542
|
|
|
$
|
39,870
|
|
Direct operating
expenses
|
|
2,883
|
|
|
5,152
|
|
|
11,162
|
|
|
13,061
|
|
Segment operating
margin
|
|
$
|
7,888
|
|
|
$
|
4,546
|
|
|
$
|
29,380
|
|
|
$
|
26,809
|
|
|
|
|
|
|
|
|
|
|
Distributions:
|
|
|
|
|
|
|
|
|
Distributions from unconsolidated affiliates
|
|
$
|
3,675
|
|
|
$
|
2,298
|
|
|
$
|
11,123
|
|
|
$
|
7,334
|
|
|
|
|
|
|
|
|
|
|
Operating data:
|
|
|
|
|
|
|
|
|
Average unconsolidated affiliate throughput (MBbls/d)
|
|
128.9
|
|
|
90.2
|
|
|
117.1
|
|
|
87.7
|
|
Average other liquid pipelines throughput (MBbls/d)
|
|
79.5
|
|
|
71.6
|
|
|
76.8
|
|
|
67.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
Transportation Services Segment
|
|
|
|
|
|
|
|
|
Financial
data:
|
|
|
|
|
|
|
|
|
Segment gross
margin
|
|
$
|
8,746
|
|
|
$
|
6,306
|
|
|
$
|
36,130
|
|
|
$
|
23,005
|
|
Direct operating
expenses
|
|
2,795
|
|
|
883
|
|
|
8,272
|
|
|
6,244
|
|
Segment operating
margin
|
|
$
|
5,951
|
|
|
$
|
5,423
|
|
|
$
|
27,858
|
|
|
$
|
16,761
|
|
Operating
data:
|
|
|
|
|
|
|
|
|
Average throughput
(MMcf/d)
|
|
612.4
|
|
|
429.4
|
|
|
678.9
|
|
|
394.7
|
|
|
|
|
|
|
|
|
|
|
Terminalling
Services Segment
|
|
|
|
|
|
|
|
|
Financial
data:
|
|
|
|
|
|
|
|
|
Segment
revenue
|
|
$
|
7,414
|
|
|
$
|
16,497
|
|
|
$
|
45,363
|
|
|
$
|
54,541
|
|
Cost of
sales
|
|
3,457
|
|
|
5,242
|
|
|
12,885
|
|
|
12,715
|
|
Direct operating
expenses
|
|
785
|
|
|
4,386
|
|
|
9,664
|
|
|
11,870
|
|
Segment operating
margin
|
|
$
|
3,172
|
|
|
$
|
6,869
|
|
|
$
|
22,814
|
|
|
$
|
29,956
|
|
Note About Non-GAAP Financial Measures
Total segment gross margin, operating margin, Adjusted EBITDA
and distributable cash flow are performance measures that are
non-GAAP financial measures. Each has important limitations as an
analytical tool because they exclude some, but not all, items that
affect the most directly comparable GAAP financial measures.
Management compensates for the limitations of these non-GAAP
measures as analytical tools by reviewing the comparable GAAP
measures, understanding the differences between the measures and
incorporating these data points into management's decision-making
process.
You should not consider total segment gross margin, operating
margin, Adjusted EBITDA or distributable cash flow in isolation or
as a substitute for, or more meaningful than analysis of, our
results as reported under GAAP. Total segment gross margin,
operating margin, Adjusted EBITDA or distributable cash flow 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.
Adjusted EBITDA is a supplemental non-GAAP financial measure
used by our management and external users of our financial
statements, such as investors, commercial banks, research analysts
and others, to assess: the financial performance of our assets
without regard to financing methods, capital structure or
historical cost basis; the ability of our assets to generate cash
flow to make cash distributions to our unitholders and our General
Partner; our operating performance and return on capital as
compared to those of other companies in the midstream energy
sector, without regard to financing or capital structure; and the
attractiveness of capital projects and acquisitions and the overall
rates of return on alternative investment opportunities.
We define Adjusted EBITDA as net income (loss) attributable to
the Partnership, plus depreciation, amortization and accretion
expense ("DAA") excluding non-controlling interest share of
DAA, interest expense, net of capitalized interest excluding , debt
issuance costs paid during the period, unrealized gains
(losses) on commodity derivatives, non-cash charges such as
non-cash equity compensation expense, charges that are unusual such
as transaction expenses primarily associated with our acquisitions,
income tax expense, distributions from unconsolidated affiliates
and General Partner's contribution, less earnings in unconsolidated
affiliates, discontinued operations, gains (losses) that are
unusual, such as gain on revaluation of equity interest and gain
(loss) on sale of assets, net, and other non-recurring items that
impact our business, such as construction and operating management
agreement income ("COMA") and other post-employment benefits plan
net periodic benefit. The GAAP measure most directly
comparable to our performance measure Adjusted EBITDA is Net income
(loss) attributable to the Partnership.
DCF is a significant performance metric used by us and by
external users of the Partnership's financial statements, such as
investors, commercial banks and research analysts, to compare basic
cash flows generated by us to the cash distributions we expect to
pay the Partnership's unitholders. Using this metric, management
and external users of the Partnership's financial statements can
quickly compute the coverage ratio of estimated cash flows to
planned cash distributions. DCF is also an important financial
measure for the Partnership's unitholders since it serves as an
indicator of the Partnership's success in providing a cash return
on investment. Specifically, this financial measure may indicate to
investors whether we are generating cash flow at a level that can
sustain or support an increase in the Partnership's quarterly
distribution rates. DCF is also a quantitative standard used
throughout the investment community with respect to publicly traded
partnerships and limited liability companies because the value of a
unit of such an entity is generally determined by the unit's yield
(which in turn is based on the amount of cash distributions the
entity pays to a unitholder). DCF will not reflect changes in
working capital balances.
We define DCF as Adjusted EBITDA, less interest expense, net of
capitalized interest excluding realized gain/(loss) on interest
rate swaps and letter of credit fees, maintenance capital
expenditures, and distributions related to the Series A and Series
C convertible preferred units. The GAAP financial measure most
comparable to DCF is Net income (loss) attributable to the
Partnership.
Segment gross margin and total segment gross margin are metrics
that we use to evaluate our performance. These metrics are
useful for understanding our operating performance because it
measures the operating results of our segments before DD&A and
certain expenses that are generally not controllable by our
business segment development managers, such as certain operating
costs, general and administrative expenses, interest expense and
income taxes. Operating margin is useful for similar reasons
except that it also includes all direct operating expenses in
order to assess the performance of our operating managers.
We define segment gross margin in our Gas Gathering and
Processing Services segment as total revenue plus unconsolidated
affiliate earnings less unrealized gains or plus unrealized losses
on commodity derivatives, construction and operating management
agreement income and the cost of natural gas, and NGLs and
condensate purchased.
We define segment gross margin in our Liquid Pipelines and
Services segment as total revenue plus unconsolidated affiliate
earnings less unrealized gains or plus unrealized losses on
commodity derivatives and the cost of crude oil 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 Natural Gas Transportation
Services segment as total revenue plus unconsolidated affiliate
earnings 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 Offshore Pipelines and
Services segment as total revenue plus unconsolidated affiliate
earnings 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 Terminalling Services
segment as total revenue less cost of sales and direct operating
expense which includes direct labor, general materials and supplies
and direct overhead.
Total segment gross margin is a supplemental non-GAAP financial
measure that we use to evaluate our performance. We define total
segment gross margin as the sum of the segment gross margins for
our Gas Gathering and Processing Services, Liquid Pipelines and
Services, Natural Gas Transportation Services, Offshore Pipelines
and Services and Terminalling Services segments. The GAAP measure
most directly comparable to total segment gross margin is Net
Income (Loss) attributable to the Partnership.
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SOURCE American Midstream Partners, LP