THE WOODLANDS, Texas,
Jan. 26, 2017 /PRNewswire/
-- Summit Midstream Partners, LP (NYSE: SMLP) announced today
that the board of directors of its general partner, Summit
Midstream GP, LLC, has declared a quarterly cash distribution of
$0.575 per unit on all of its
outstanding common units, or $2.30
per unit on an annualized basis, for the quarter ended December 31, 2016. This quarterly
distribution remains unchanged from the previous quarter and from
the quarter ended December 31,
2015. This distribution will be paid on February 14, 2017, to unitholders of record as of
the close of business on February 7,
2017.
2017 SMLP Financial Guidance
SMLP also
announced 2017 financial guidance with adjusted EBITDA expected to
range from $295.0 million to $315.0
million. SMLP expects to report 2016 adjusted EBITDA
that is at or above the top end of the $270.0 million to $290.0 million range.
SMLP's 2017 adjusted EBITDA guidance is based on information
received to date from its customers and the year over year increase
is supported by a recent increase in drilling activity across its
gathering systems. SMLP expects quarterly adjusted EBITDA to
increase throughout 2017, with an annualized fourth quarter
adjusted EBITDA run rate between $325.0
million and $345.0 million.
Steve Newby, President and Chief
Executive Officer, commented, "We expect the first half of 2017 to
be impacted by the slower pace of drilling activity that occurred
across many of our systems in late 2016. As we look towards
the second half of 2017, we expect to benefit from DUC completions
and increased drilling activity that is currently taking place
behind our gathering systems in the Utica, Williston, Piceance, DJ, and Marcellus. We
also expect to continue to benefit from our ongoing company-wide
efforts to control costs and optimize operations. We will
continue to evaluate resuming distribution growth in 2017 as the
outlook becomes more certain."
SMLP expects to incur $100.0 million to
$150.0 million of capex in 2017, including maintenance capex
of approximately $15.0 million to $20.0
million. SMLP's 2017 capex guidance reflects the
inclusion of our contributions to equity method investees.
SMLP expects full year distribution coverage will range from 1.15x
to 1.25x.
Fourth Quarter 2016 Earnings Release and Earnings Call
Schedule
SMLP also announced today that it will
report financial results for the fourth quarter of 2016 on
Thursday, February 23, 2017 after the
close of trading on the New York Stock Exchange.
SMLP will host a conference call at 10:00
a.m. Eastern on Friday, February 24,
2017, to discuss its quarterly operating and financial
results. Interested parties may participate in the call by
dialing 847-619-6397 or toll-free 800-708-4540 and entering the
passcode 44169352. The conference call will also be webcast
live and can be accessed through the Investors section of SMLP's
website at www.summitmidstream.com.
A replay of the conference call will be available until
March 10, 2017 at 11:59 p.m. Eastern, and can be accessed by
dialing 888-843-7419 and entering the replay passcode
44169352#. An archive of the conference call will also be
available on SMLP's website.
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 (100.0%) of SMLP's distributions to foreign
investors as being attributable to income that is effectively
connected with a United States
trade or business. Accordingly, SMLP's distributions to foreign
investors are subject to federal income tax withholding at the
highest applicable effective tax rate.
About Summit Midstream Partners, LP
SMLP is a
growth-oriented limited partnership focused on developing, owning
and operating midstream energy infrastructure assets that are
strategically located in the core producing areas of unconventional
resource basins, primarily shale formations, in the continental
United States. SMLP provides
natural gas, crude oil and produced water gathering services
pursuant to primarily long-term and fee-based gathering and
processing agreements with customers and counterparties in five
unconventional resource basins: (i) the Appalachian Basin, which
includes the Marcellus and Utica
shale formations in West Virginia
and Ohio; (ii) the Williston Basin, which includes the Bakken and
Three Forks shale formations in North
Dakota; (iii) the Fort
Worth Basin, which includes the Barnett Shale formation in
Texas; (iv) the Piceance Basin,
which includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in
Colorado and Utah; and (v) the Denver-Julesburg Basin,
which includes the Niobrara and Codell shale formations in
Colorado and Wyoming. SMLP
also owns substantially all of a 40% ownership interest in Ohio
Gathering, which is developing natural gas gathering and condensate
stabilization infrastructure in the Utica Shale in Ohio. SMLP
is headquartered in The Woodlands,
Texas, with regional corporate offices in Denver, Colorado and Atlanta, Georgia.
About Summit Midstream Partners, LLC
Summit
Midstream Partners, LLC ("Summit Investments") beneficially owns a
40.6% limited partner interest in SMLP and indirectly owns and
controls the general partner of SMLP, Summit Midstream GP, LLC,
which has sole responsibility for conducting the business and
managing the operations of SMLP. Summit Investments is a privately
held company controlled by Energy Capital Partners II, LLC, and
certain of its affiliates. An affiliate of Energy Capital
Partners II, LLC directly owns an 8.0% limited partner interest in
SMLP.
Forward-Looking Statements
This press
release includes certain statements concerning expectations for the
future that are forward-looking within the meaning of the federal
securities laws. Forward-looking statements contain known and
unknown risks and uncertainties (many of which are difficult to
predict and beyond management's control) that may cause SMLP's
actual results in future periods to differ materially from
anticipated or projected results. An extensive list of specific
material risks and uncertainties affecting SMLP is contained in its
2015 Annual Report on Form 10-K as updated and superseded by the
Current Report on Form 8-K/A filed with the Securities and Exchange
Commission on September 1, 2016, and
as amended and updated from time to time. Any forward-looking
statements in this press release are made as of the date of this
press release and SMLP undertakes no obligation to update or revise
any forward-looking statements to reflect new information or
events.
We do not provide the GAAP financial measures of net income
or loss or net cash provided by operating activities on a
forward-looking basis because we are unable to predict, without
unreasonable effort, certain components thereof including, but not
limited to, (i) income or loss from equity method investees, (ii)
deferred purchase price obligation income or expense and (iii)
asset impairments. These items are inherently uncertain and
depend on various factors, many of which are beyond our
control. As such, any associated estimate and its impact on
our GAAP performance and cash flow measures could vary materially
based on a variety of acceptable management assumptions.
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SOURCE Summit Midstream Partners, LP