DENVER, Sept. 6, 2016 /PRNewswire/ -- Antero Midstream
Partners LP (NYSE: AM) ("Antero Midstream" or the
"Partnership") today announced increased 2016 guidance.
Highlights Include:
- Increased net income guidance by $35 to
$40 million to a range of $205 - $225
million
- Increased 2016 adjusted EBITDA guidance by $35 to $40 million to a range of $365 - $385 million
- Increased 2016 distributable cash flow guidance by $35 to $40 million to a range of $315 - $335 million
- Maintained previous 2016 year-over-year distribution growth
guidance of 30% and capital expenditure guidance of $480 million
Increased 2016 Guidance
Antero Midstream is forecasting net income of $205 million to $225 million, a 21% increase from
previous guidance. The Partnership is forecasting 2016 adjusted
EBITDA of $365 million to $385
million and distributable cash flow of $315 million to $335 million, increases of
$35 to $40
million, or 11% and 13%, respectively, compared to the
previous 2016 guidance. The increase in guidance is primarily due
to an increase in expected fresh water delivery volumes to Antero
Resources driven by higher proppant intensity requirements for
advanced completions as well as increased gathering and compression
throughput. In a separate release, Antero Resources announced an
increase in 2016 production guidance from 1.75 Bcfe/d to 1.80
Bcfe/d, which represents 20% year-over-year production
growth. The Partnership expects year over year distribution
growth in 2016 of 30% and estimated DCF coverage of 1.55x to 1.65x.
In addition, the Partnership is targeting 2017 year-over-year
distribution growth of 28% to 30%.
|
|
Full Year
2016
|
|
|
|
|
Updated
Guidance
|
|
Prior
Guidance
|
|
Increase
|
Net Income
($MM)
|
|
$205 –
$225
|
|
$165 –
$190
|
|
$35 – $40
|
Adjusted EBITDA
($MM)
|
|
$365 –
$385
|
|
$325 –
$350
|
|
$35 – $40
|
Distributable Cash
Flow ($MM)
|
|
$315 –
$335
|
|
$275 –
$300
|
|
$35 – $40
|
Year over Year
Distribution Growth
|
|
30%
|
|
30%
|
|
–
|
2016 DCF Coverage
Ratio
|
|
1.55x –
1.65x
|
|
1.40x –
1.50x
|
|
0.15x
|
Capital Expenditures
($MM)
|
|
$480
|
|
$480
|
|
–
|
Please see the Non-GAAP disclosures section of this news
release.
Commenting on increased guidance, Paul
Rady, Chairman of the Board and CEO said, "Antero Midstream
continues to benefit from the operational improvements and
efficiencies at Antero Resources, which continues to be the most
active operator in Appalachia. Focusing on the second half of 2016,
we expect Antero Midstream's water business to benefit from
increased water volumes as Antero Resources pilots additional
advanced completion techniques utilizing more water and sand per
lateral foot in completions compared to the previous forecast.
Additionally, Antero Resources' increased production guidance
for 2016 increases expected throughput at Antero Midstream and
builds further momentum heading into 2017."
In conjunction with Antero Midstream's guidance update, Antero
Resources released a guidance update which can be found at
www.anteroresources.com.
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 equity-based compensation
expense, interest expense, depreciation expense, accretion of
contingent acquisition consideration, excluding pre-acquisition
income and expenses attributable to the parent and equity in
earnings of unconsolidated affiliate.
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 cash interest paid, income tax withholding payments and
cash reserved for payments upon vesting of equity-based
compensation awards and ongoing maintenance capital expenditures
paid, excluding pre-acquisition amounts attributable to the parent
plus cash distribution to be received from unconsolidated
affiliate. 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.
Antero Midstream does not provide guidance on equity earnings,
among other items, that are reconciling items between forecasted
Adjusted EBITDA and forecasted net income due to the uncertainty
regarding timing and estimates of reconciling items. Antero
Midstream provides a range for the forecasts of net income,
Adjusted EBITDA, and Distributable Cash Flow to allow for the
variability in timing and uncertainty of estimates of reconciling
items between forecasted Adjusted EBITDA and forecasted net income.
Therefore, the Partnership cannot reconcile Adjusted EBITDA to
forecasted net income without unreasonable effort.
Antero Midstream Partners LP is a limited partnership that
owns, operates and develops midstream gathering and compression
assets located in West Virginia,
Ohio and Pennsylvania, as well as integrated water
assets that primarily service Antero Resources' properties located
in West Virginia and Ohio.
This release includes "forward-looking statements" within the
meaning of federal securities laws. Such forward-looking
statements are subject to a number of risks and uncertainties, many
of which are beyond the Partnership's control. All
statements, other than historical facts included in this release,
are forward-looking statements. All forward-looking
statements speak only as of the date of this release.
Although the Partnership believes that the plans, intentions and
expectations reflected in or suggested by the forward-looking
statements are reasonable, there is no assurance that these plans,
intentions or expectations will be achieved. Therefore,
actual outcomes and results could materially differ from what is
expressed, implied or forecast in such statements. Nothing in
this release is intended to constitute guidance with respect to
Antero Resources.
Antero Midstream cautions you that these forward-looking
statements are subject to all of the risks and uncertainties, most
of which are difficult to predict and many of which are beyond the
Partnership's control, incident to the gathering and compression
and water handling and treatment business. These risks include, but
are not limited to, Antero Resources' expected future growth,
Antero Resources' ability to meet its drilling and development
plan, commodity price volatility, ability to execute the
Partnership's business strategy, competition and government
regulations, actions taken by third-party producers, operators,
processors and transporters, inflation, environmental risks,
drilling and completion and other operating risks, regulatory
changes, the uncertainty inherent in projecting future rates of
production, cash flow and access to capital, the timing of
development expenditures, and the other risks described under "Risk
Factors" in Antero Midstream's Annual Report on Form 10-K for the
quarter ended December 31,
2015.
For more information, contact Michael
Kennedy – CFO of Antero Midstream at (303) 357-6782 or
mkennedy@anteroresources.com.
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SOURCE Antero Midstream Partners LP