DENVER, Feb. 28, 2017 /PRNewswire/ -- Antero Midstream
Partners LP (NYSE: AM) ("Antero Midstream" or the
"Partnership") today released its fourth quarter and full year 2016
financial and operational results. The relevant combined
consolidated financial statements are included in Antero
Midstream's Annual Report on Form 10-K for the year ended
December 31, 2016, which has been
filed with the Securities and Exchange Commission ("SEC").
Fourth Quarter Highlights Include:
- Net income of $73 million, or
$0.37 per limited partner unit,
representing a per unit increase of 37% compared to the prior year
quarter
- Adjusted EBITDA of $126
million, a 52% increase compared to the prior year
quarter
- Distributable cash flow of $103
million, resulting in DCF coverage of 1.8x
- $0.28 per unit cash
distribution declared for the fourth quarter of 2016, a 27%
increase over the prior year quarter and a 6% increase
sequentially
Full Year 2016 Highlights Include:
- Net income of $237 million, or
$1.24 per limited partner unit,
representing a per unit increase of 63% compared to the prior
year
- Adjusted EBITDA of $404
million, a 45% increase compared to the prior year
- Distributable cash flow of $353
million, resulting in DCF coverage of 1.8x
- Leverage of 1.9x, pro forma for 6.9 million common unit
offering and Joint Venture capital contribution
Recent Developments
Strategic Processing and Fractionation Joint
Venture
During the first quarter of 2017, Antero Midstream announced the
formation of a joint venture (the "Joint Venture") to develop
processing and fractionation assets in Appalachia with MarkWest
Energy Partners, L.P., a wholly owned subsidiary of MPLX, L.P.
Antero Midstream and MarkWest will jointly develop processing
assets at the Sherwood Processing Facility in Doddridge County, WV, and a facility at an
additional site still to be designated, also located in
West Virginia in the southwestern
core of the Marcellus Shale. Since the Joint Venture
announcement, Antero Resources committed to plant 10 at the
Sherwood facility, which is expected to be placed in service in the
third quarter of 2018. The Joint Venture is underpinned by
long-term fee-based agreements with Antero Resources.
Additionally, the Joint Venture will own C3+ fractionation
capacity at the Hopedale complex
in Harrison County, Ohio supported
by Antero Resources and other third party producers and will have
the option to participate in incremental fractionation capacity
anticipated to be built in the future as needed.
Capital Budget and Guidance Increase
Concurrent with the Joint Venture announcement, Antero Midstream
increased its 2017 capital budget from $525
million to $800 million.
Additionally, Antero Midstream increased its 2017 Adjusted
EBITDA guidance to $520 million to $560
million and reaffirmed its compound annual distribution
growth target of 28% to 30% and increased its DCF coverage target
to greater than 1.25x through 2020. Antero Midstream is targeting
leverage in the low 2-times range over the corresponding
period.
Primary Unit Offering
In conjunction with the Joint Venture announcement, Antero
Midstream issued 6,900,000 common units, including the
underwriter's purchase option, resulting in net proceeds of
approximately $223 million.
Proceeds from the offering were used to fund the initial
$155 million capital contribution for
the Joint Venture and general partnership purposes.
Distribution for the Fourth Quarter of 2016 and Conversion
of Subordinated Units
The Board of Directors of Antero Resources Midstream Management
LLC, the general partner of the Partnership, declared and paid a
cash distribution of $0.28 per unit
($1.12 per unit annualized) for the
fourth quarter of 2016. The distribution represented a 27%
increase compared to the prior year quarter and a 6% increase
sequentially. The distribution was the Partnership's eighth
consecutive quarterly distribution increase since its initial
public offering in November 2014 and
was paid on February 8, 2017 to
unitholders of record as of February
1, 2017. Upon payment of this distribution, the
75,940,957 subordinated units owned by Antero Resources were
converted into common units on a one-for-one basis under the terms
of the Partnership agreement.
Commenting on the Joint Venture, Paul
Rady, Chairman and CEO, said, "Antero Midstream took another
step in becoming a full value chain Appalachian midstream provider
and diversifying its cash flow contribution with the addition of
processing and fractionation services. The Joint Venture supports
Antero Midstream's long term annual distribution growth target of
28% to 30% through 2020 while targeting a DCF coverage ratio
greater than 1.25x and leverage in the low 2-times. In
addition, the Joint Venture increases Antero Midstream's organic
investment opportunity set to $2.7
billion from 2017 through 2020 and is another example of
leveraging Antero Resources' status as the leader in C3+ NGL
production and drilling inventory in Appalachia."
Fourth Quarter 2016 Financial and Operational Results
Low pressure gathering volumes for the fourth quarter of 2016
averaged 1,522 MMcf/d, a 35% increase from the fourth quarter of
2015 and a 6% increase sequentially from the third quarter of
2016. Compression volumes for the fourth quarter of 2016
averaged 920 MMcf/d, a 92% increase from the fourth quarter of 2015
and an 18% increase sequentially. High pressure gathering
volumes for the fourth quarter of 2016 averaged 1,437 MMcf/d, a 20%
increase from the fourth quarter of 2015 and a 6% increase
sequentially. The increase in throughput volumes
was driven by Antero Resources' production growth in Antero
Midstream's area of dedication.
Fresh water delivery volumes averaged 149,682 Bbl/d during the
quarter, a 25% increase compared to the prior year quarter and a 7%
increase sequentially. The increase in volumes was driven by
an increase in wells serviced by the fresh water delivery system
and higher water intensity advanced completions.
|
|
Three Months
Ended
December
31,
|
|
|
Average Daily
Throughput:
|
|
2015
|
|
2016
|
|
%
Change
|
Low Pressure Gathering
(MMcf/d)
|
|
1,124
|
|
1,522
|
|
35%
|
Compression
(MMcf/d)
|
|
478
|
|
920
|
|
92%
|
High Pressure
Gathering (MMcf/d)
|
|
1,195
|
|
1,437
|
|
20%
|
|
|
|
|
|
|
|
Average Daily
Volumes:
|
|
|
|
|
|
|
Fresh Water Delivery
(Bbl/d)
|
|
119,671
|
|
149,682
|
|
25%
|
For the three months ended December 31,
2016, the Partnership reported revenues of $167 million, comprised of $88 million from the Gathering and Processing
segment and $79 million from the
Water Handling and Treatment segment. Revenues increased 27%
compared to the prior year quarter, primarily driven by growth in
natural gas throughput volumes and fresh water delivery volumes.
Gathering and Processing revenues included a $4 million gain on asset sale related to the
divestiture of certain gathering and compression assets in
Pennsylvania during the
quarter. Water Handling and Treatment segment revenues
include $28 million from fluid
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 $29
million, respectively, for a total of $37 million compared to $40 million in direct operating expenses in the
prior year quarter. Water Handling and Treatment direct
operating expenses include $27
million from fluid handling and high rate water transfer
services. The decrease in direct operating expenses was
driven primarily by a reduction in fluid handling and high rate
transfer expenses. General and administrative expenses
including equity-based compensation were $14
million, a $1 million increase
compared to the fourth quarter of 2015. General and
administrative expenses excluding equity-based compensation were
$8 million during the fourth quarter
of 2016, in line with the fourth quarter of 2015. Total
operating expenses were $83 million,
including $26 million of
depreciation, $7 million of
equity-based compensation, and $6
million of accretion of contingent acquisition
consideration.
Net income for the fourth quarter of 2016 was $73 million, a 50% increase compared to the prior
year quarter. Net income per limited partner unit was
$0.37 per unit, a 37% increase
compared to the prior year quarter. Adjusted EBITDA was
$126 million, a 52% increase compared
to the prior year quarter. Adjusted EBITDA for the fourth
quarter included an $8 million
distribution from unconsolidated affiliates related to Antero
Midstream's 15% interest in Stonewall Gathering, LLC. The
distribution represents 2016 cash received from Stonewall
operations since acquiring the 15% interest in May of 2016.
The increase in net income and Adjusted EBITDA from the prior
year is primarily driven by increased gathering and compression
volumes and fresh water delivery volumes. Cash interest paid
and cash reserved for bond interest were $2
million and $10 million during
the quarter, respectively. Income tax withholding upon
vesting of Antero Midstream equity-based compensation awards was
$3 million. Maintenance capital
expenditures during the quarter totaled $5
million and distributable cash flow was $103 million, resulting in a DCF coverage ratio
of 1.8x.
Commenting on Antero Midstream's quarterly results, Michael Kennedy, CFO of Antero Midstream said,
"Antero Midstream closed out another strong year operationally and
financially, driven by the growth in throughput volumes from Antero
Resources. Additionally, during the fourth quarter, Antero
Midstream benefitted from Antero Resources' accelerated
completions, resulting in increased throughput and fresh water
delivery volumes that are projected to continue into 2017."
Gathering and Processing — Antero Midstream
increased compression capacity by placing into service a 145 MMcf/d
compressor station in Tyler County, West
Virginia late during the fourth quarter of 2016.
Antero's current compression capacity is approximately 1.1
Bcf/d in the Marcellus and Utica
combined and compression capacity was approximately 90% utilized in
the fourth quarter. Additionally, Antero Midstream connected
41 wells to its Marcellus and Utica gathering systems during the quarter,
bringing total wells connected to 440. Antero Resources is
currently operating six drilling rigs in the Marcellus and
Utica.
Water Handling and Treatment — Antero
Midstream's Marcellus and Utica
fresh water delivery systems serviced 35 well completions in the
fourth quarter of 2016, in line with the prior year quarter.
As a result of pilot tests utilizing advanced completions,
Antero Midstream's fresh water delivery volumes increased 25% as
compared to the prior year quarter despite servicing the same
number of wells. Antero's completions during the fourth
quarter averaged 46 barrels per foot in the Marcellus and 39
barrels per foot in the Utica, for
a quarterly weighted average of 44 barrels per foot. Antero
Resources is currently operating six completion crews in the
Marcellus and Utica.
Antero Midstream continued construction on the Antero Clearwater
Facility, which is expected to be placed into service during the
fourth quarter of 2017. Through year-end 2016, Antero Midstream has
invested $217 million, or
approximately 70% of the total estimated project cost, in the
Antero Clearwater Facility. The Antero Clearwater Facility
will be the largest advanced wastewater treatment facility in the
world designed for oil and gas operations.
Fourth Quarter Capital Spending
Antero Midstream's capital expenditures for the three months
ended December 31, 2016 were
$126 million as compared to
$128 million during the prior year
quarter. Capital expenditures included $75 million that was invested in gathering and
compression and $51 million invested
in water handling and treatment infrastructure. Water
handling and treatment infrastructure capital expenditures included
$36 million for the continued
construction of the Antero Clearwater Facility. Additionally,
Antero Midstream made a $30 million
capital contribution to Stonewall Gathering LLC to repay
outstanding debt, thereby releasing restrictions on cash
distributions to equity interest holders.
2016 Financial and Operational Results
Low pressure gathering volumes for 2016 averaged 1,403 MMcf/d, a
38% increase from the prior year. Compression volumes and
high pressure gathering volumes for 2016 averaged 741 MMcf/d and
1,316 MMcf/d representing a 72% and 11% increase, respectively,
from the prior year. The increase in gathering and
compression volumes was due to production growth from Antero
Resources in Antero Midstream's area of dedication. Fresh
water delivery volumes for 2016 averaged 123,258 Bbl/d, a 29%
increase compared to the prior year. The increase in volumes
was driven by an increase in wells serviced by the fresh water
delivery system and higher water intensity advanced
completions.
Total revenues for 2016 were $590
million, a 52% increase over the prior year, and were
comprised of $308 million from the
Gathering and Processing segment and $282
million from the Water Handling and Treatment segment.
Water Handling and Treatment segment revenues include $116 million from fluid handling and high rate
water transfer services provided to Antero Resources, which is
billed at cost plus 3%. Direct operating expenses for 2016
for the Gathering and Processing and Water Handling and Treatment
segments were $27 million and
$135 million, respectively, for a
total of $162 million. Water
Handling and Treatment direct operating expenses include
$113 million from fluid handling and
high rate water transfer services provided to Antero Resources,
which is billed at cost plus 3%. Direct operating expenses
increased 105% from the prior year, driven by the commencement of
fluid handling and high rate transfer services provided to Antero
Resources for a full twelve month period. General and
administrative expenses including equity-based compensation were
$54 million, a 6% increase compared
to the prior year. General and administrative expenses
excluding equity-based compensation for 2016 were $28 million, a 2% decrease from the prior year.
Total operating expenses were $332
million, including $100
million of depreciation, $26
million of equity-based compensation, and $16 million of accretion of contingent
acquisition consideration, representing a 51% increase over the
prior year.
Net income for 2016 was $237
million, a 49% increase compared to the prior year.
Net income per limited partner unit was $1.24 per unit, a 63% increase over the prior
year. Adjusted EBITDA was $404
million, a 45% increase compared to the prior year.
The increases in net income and Adjusted EBITDA were
primarily driven by increased throughput volumes and fresh water
delivery volumes. Cash interest paid and cash reserved for
bond interest for 2016 were $13
million and $10 million,
respectively. Income tax withholding upon vesting of Antero
Midstream equity-based compensation awards was $6 million. Maintenance capital
expenditures for 2016 totaled $22
million and distributable cash flow was $353 million, resulting in a DCF coverage ratio
of 1.8x.
2016 Capital Spending
Antero Midstream's capital expenditures for the year ended
December 31, 2016, including the
$75 million investment in Stonewall
Gathering LLC, totaled $475 million
as compared to $452 million during
the prior year. Capital expenditures included $228 million in gathering and compression and
$188 million in water handling and
treatment infrastructure. Water handling and treatment
infrastructure capital expenditures include $149 million for the continued construction of
the Antero Clearwater Facility.
The following table reconciles net income to Adjusted EBITDA and
distributable cash flow as used in this release (in thousands):
|
Three months
ended
|
|
Years
ended
|
December
31,
|
|
December
31,
|
2015
|
|
2016
|
|
2015
|
|
2016
|
Net
income
|
$
|
49,008
|
|
|
73,351
|
|
$
|
159,105
|
|
$
|
236,703
|
Interest
expense
|
|
2,892
|
|
|
9,008
|
|
|
8,158
|
|
|
21,893
|
Depreciation
expense
|
|
23,155
|
|
|
25,761
|
|
|
86,670
|
|
|
99,861
|
Accretion of contingent
acquisition consideration
|
|
3,333
|
|
|
6,105
|
|
|
3,333
|
|
|
16,489
|
Equity-based
compensation
|
|
4,807
|
|
|
6,683
|
|
|
22,470
|
|
|
26,049
|
Equity in (earnings)
loss of unconsolidated affiliate
|
|
—
|
|
|
1,542
|
|
|
—
|
|
|
(485)
|
Distributions from
unconsolidated affiliate
|
|
—
|
|
|
7,702
|
|
|
—
|
|
|
7,702
|
Gain on asset
sale
|
|
—
|
|
|
(3,859)
|
|
|
—
|
|
|
(3,859)
|
Adjusted
EBITDA
|
$
|
83,195
|
|
$
|
126,293
|
|
$
|
279,736
|
|
$
|
404,353
|
Pre-Water Acquisition
net income attributed to parent
|
|
—
|
|
|
—
|
|
|
(40,193)
|
|
|
—
|
Pre-Water Acquisition
depreciation expense attributed to parent
|
|
—
|
|
|
—
|
|
|
(18,767)
|
|
|
—
|
Pre-Water Acquisition
equity-based compensation expense attributed to parent
|
|
—
|
|
|
—
|
|
|
(3,445)
|
|
|
—
|
Pre-Water Acquisition
interest expense attributed to parent
|
|
—
|
|
|
—
|
|
|
(2,326)
|
|
|
—
|
Adjusted EBITDA
attributable to the Partnership
|
$
|
83,195
|
|
$
|
126,293
|
|
$
|
215,005
|
|
$
|
404,353
|
Cash interest paid, net
- attributable to the Partnership
|
|
(2,934)
|
|
|
(1,743)
|
|
|
(5,149)
|
|
|
(13,494)
|
Income tax withholding
upon vesting of Antero Midstream LP equity-based compensation
awards
|
|
(4,806)
|
|
|
(2,636)
|
|
|
(4,806)
|
|
|
(5,636)
|
Cash received from
unconsolidated affiliate
|
|
—
|
|
|
(2,998)
|
|
|
—
|
|
|
—
|
Cash reserved for bond
interest (1)
|
|
—
|
|
|
(10,481)
|
|
|
—
|
|
|
(10,481)
|
Maintenance capital
expenditures(2)
|
|
(3,096)
|
|
|
(5,466)
|
|
|
(13,097)
|
|
|
(21,622)
|
Distributable cash
flow
|
$
|
72,359
|
|
$
|
102,969
|
|
$
|
191,953
|
|
$
|
353,120
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions
declared
|
$
|
39,725
|
|
$
|
57,634
|
|
$
|
132,651
|
|
$
|
200,355
|
|
|
|
|
|
|
|
|
|
|
|
|
DCF coverage
ratio
|
|
1.82x
|
|
|
1.79x
|
|
|
1.45x
|
|
|
1.76x
|
|
|
1)
|
Cash reserved for
bond interest represents accrued 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.
|
2)
|
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.
|
Balance Sheet and Liquidity
As of December 31, 2016, Antero
Midstream had $210 million drawn on
its $1.5 billion bank credit facility
with current borrowing capacity of $1.4
billion, resulting in approximately $1.2 billion in available credit facility
capacity. Antero Midstream had $14
million of cash on its balance sheet and a consolidated net
debt to trailing twelve months Adjusted EBITDA ratio of 2.1x as of
December 31, 2016. Pro forma
for the initial capital contribution to the Joint Venture and the
6.9 million common unit offering, Antero Midstream's consolidated
net debt to trailing twelve months Adjusted EBITDA ratio was 1.9x.
For a reconciliation of consolidated net debt to consolidated
total debt, the most comparable GAAP measure, please read "Non-GAAP
Financial Measures."
Full Year 2016 Capacity Additions
During 2016, Antero Midstream added 315 MMcf/d of compression
capacity, resulting in significant growth in compression volumes
during the year. Additionally, the Partnership placed into
service 12 miles of low pressure pipeline and 22 miles of high
pressure pipeline. The below table summarizes the
Partnership's cumulative miles of pipeline and compression capacity
at year-end 2015 and 2016:
|
|
Gathering and
Compression System
|
|
|
|
Low
Pressure
Pipeline
(miles)
|
|
High
Pressure
Pipeline
(miles)
|
|
Compression
Capacity
(MMcf/d)
|
|
|
|
|
As of December
31,
|
|
Marcellus
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
106
|
115
|
76
|
98
|
700
|
1,015
|
|
Utica
|
|
55
|
|
58
|
|
36
|
|
36
|
|
120
|
|
120
|
|
|
Total
|
|
161
|
|
173
|
112
|
134
|
820
|
1,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During 2016, Antero Midstream added 27 miles of buried and
surface fresh water pipelines in the Marcellus and Ohio Utica Shale
plays combined. Additionally, the Partnership built one fresh
water storage impoundment in the Ohio Utica Shale. The below
table summarizes the Partnership's cumulative miles of fresh water
pipeline and fresh water storage impoundments at year-end 2015 and
2016, in addition to wells serviced by fresh water delivery and
water per foot used in completions during the period:
|
|
Water Handling
System
|
|
|
Fresh Water
Pipeline
(miles)
|
|
Fresh Water
Impoundments
|
|
Wells Serviced
by
Water Delivery
|
|
Water Per Foot
Used
in Completions
(Bbls/ft)
|
|
|
As of December
31,
|
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
Marcellus
|
|
184
|
|
203
|
|
22
|
|
22
|
|
62
|
|
99
|
|
33
|
|
41
|
Utica
|
|
75
|
|
83
|
|
13
|
|
14
|
|
62
|
|
32
|
|
34
|
|
37
|
Total
|
|
259
|
|
286
|
|
35
|
|
36
|
|
124
|
|
131
|
|
34
|
|
40
|
Conference Call
A conference call is scheduled on Wednesday, March 1, 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 1-888-347-8204 (U.S.), 1-855-669-9657
(Canada), or 1-412-902-4229
(International) and reference "Antero Midstream". A telephone
replay of the call will be available until Friday, March 10 , 2017 at 10:00 am MT at 1-877-870-5176 (U.S.) or
1-858-384-5517 (International) using the passcode 10098008.
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 Friday, March 10, 2017 at 10:00 am MT.
Presentation
An updated presentation will be posted to the Partnership's
website before the March 1, 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 equity-based compensation
expense, interest expense, depreciation expense, accretion of
contingent acquisition consideration, gain on asset sale, excluding
pre-acquisition income and expenses attributable to the parent and
equity in earnings of unconsolidated affiliate, and including cash
distributions from 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, cash reserved for bond interest and ongoing
maintenance capital expenditures paid, excluding pre-acquisition
amounts attributable to the parent less cash 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 or targets 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.
The following table reconciles consolidated total debt to
consolidated net debt as used in this release (in thousands):
|
|
December
31,
|
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
Bank credit
facility
|
|
$
|
620,000
|
|
$
|
210,000
|
5.375% AM senior
notes due 2024
|
|
|
—
|
|
|
650,000
|
Net unamortized debt
issuance costs
|
|
|
—
|
|
|
(10,086)
|
Consolidated total
debt
|
|
$
|
620,000
|
|
$
|
849,914
|
Cash and cash
equivalents
|
|
|
6,883
|
|
|
14,042
|
Consolidated net
debt
|
|
$
|
613,117
|
|
$
|
835,872
|
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 Combined
Consolidated Balance Sheets
December 31, 2015 and 2016
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2016
|
|
Assets
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,883
|
|
$
|
14,042
|
|
Accounts
receivable–Antero Resources
|
|
|
65,712
|
|
|
64,139
|
|
Accounts
receivable–third party
|
|
|
2,707
|
|
|
1,240
|
|
Prepaid
expenses
|
|
|
—
|
|
|
529
|
|
Total current
assets
|
|
|
75,302
|
|
|
79,950
|
|
Property and
equipment:
|
|
|
|
|
|
|
|
Gathering and
compression systems
|
|
|
1,485,835
|
|
|
1,705,839
|
|
Water handling and
treatment systems
|
|
|
565,616
|
|
|
744,682
|
|
|
|
|
2,051,451
|
|
|
2,450,521
|
|
Less accumulated
depreciation
|
|
|
(157,625)
|
|
|
(254,642)
|
|
Property and
equipment, net
|
|
|
1,893,826
|
|
|
2,195,879
|
|
Investment in
unconsolidated affiliate
|
|
|
—
|
|
|
68,299
|
|
Other assets,
net
|
|
|
10,904
|
|
|
5,767
|
|
Total
assets
|
|
$
|
1,980,032
|
|
$
|
2,349,895
|
|
Liabilities and
Partners' Capital
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
10,941
|
|
$
|
16,979
|
|
Accounts payable–Antero
Resources
|
|
|
2,138
|
|
|
3,193
|
|
Accrued
liabilities
|
|
|
85,385
|
|
|
61,641
|
|
Other current
liabilities
|
|
|
150
|
|
|
200
|
|
Total current
liabilities
|
|
|
98,614
|
|
|
82,013
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
620,000
|
|
|
849,914
|
|
Contingent acquisition
consideration
|
|
|
178,049
|
|
|
194,538
|
|
Other
|
|
|
624
|
|
|
620
|
|
Total
liabilities
|
|
|
897,287
|
|
|
1,127,085
|
|
|
|
|
|
|
|
|
|
Partners'
capital:
|
|
|
|
|
|
|
|
Common unitholders -
public (59,286 units and 70,020 units issued and outstanding at
December 31, 2015 and 2016, respectively)
|
|
|
1,351,317
|
|
|
1,458,410
|
|
Common unitholder -
Antero Resources (40,929 units and 32,929 units issued and
outstanding at December 31, 2015 and 2016, respectively)
|
|
|
30,186
|
|
|
26,820
|
|
Subordinated unitholder
- Antero Resources (75,941 units issued and outstanding at December
31, 2015 and 2016)
|
|
|
(299,727)
|
|
|
(269,963)
|
|
General
partner
|
|
|
969
|
|
|
7,543
|
|
Total partners'
capital
|
|
|
1,082,745
|
|
|
1,222,810
|
|
Total
liabilities and partners' capital
|
|
$
|
1,980,032
|
|
$
|
2,349,895
|
|
ANTERO MIDSTREAM
PARTNERS LP Condensed Combined Consolidated Statements of
Operations and Comprehensive Income
Three Months Ended December 31, 2015, and 2016
(In thousands, except per unit amounts)
|
|
|
2015
|
|
2016
|
|
|
Revenue:
|
|
|
|
|
|
Gathering and
compression–Antero Resources
|
$
|
62,154
|
|
$
|
84,312
|
Water handling and
treatment–Antero Resources
|
|
69,195
|
|
|
78,517
|
Gathering and
compression–third party
|
|
344
|
|
|
166
|
Water handling and
treatment–third party
|
|
—
|
|
|
—
|
Gain on sale of
assets
|
|
—
|
|
|
3,859
|
Total
revenue
|
|
131,693
|
|
|
166,854
|
Operating
expenses:
|
|
|
|
|
|
Direct
operating
|
|
40,022
|
|
|
36,636
|
General and
administrative (including $4,807 and $6,683 of equity-based
compensation in 2015 and 2016, respectively)
|
|
13,283
|
|
|
14,451
|
Depreciation
|
|
23,155
|
|
|
25,761
|
Accretion of contingent
acquisition consideration
|
|
3,333
|
|
|
6,105
|
Total operating
expenses
|
|
79,793
|
|
|
82,953
|
Operating
income
|
|
51,900
|
|
|
83,901
|
Interest expense,
net
|
|
(2,892)
|
|
|
(9,008)
|
Equity in earnings
(loss) of unconsolidated affiliate
|
|
—
|
|
|
(1,542)
|
Net income and
comprehensive income
|
|
49,008
|
|
|
73,351
|
General partner interest in net income attributable to incentive
distribution rights
|
|
(969)
|
|
|
(7,557)
|
Limited partners'
interest in net income
|
$
|
48,039
|
|
$
|
65,794
|
Net income per limited
partner unit:
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
Common
units
|
$
|
0.27
|
|
$
|
0.37
|
Subordinated
units
|
$
|
0.27
|
|
$
|
0.37
|
Diluted:
|
|
|
|
|
|
Common
units
|
$
|
0.27
|
|
$
|
0.37
|
Subordinated
units
|
$
|
0.27
|
|
$
|
0.37
|
Weighted average number
of limited partner units outstanding:
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
Common
units
|
|
100,036
|
|
|
101,910
|
Subordinated
units
|
|
75,941
|
|
|
75,941
|
Diluted:
|
|
|
|
|
|
Common
units
|
|
100,075
|
|
|
102,254
|
Subordinated
units
|
|
75,941
|
|
|
75,941
|
ANTERO MIDSTREAM
PARTNERS LP Combined Consolidated Statements of Operations
and Comprehensive Income
Years Ended December 31, 2014, 2015, and 2016
(In thousands, except unit counts and per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2015
|
|
2016
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Gathering and
compression–Antero Resources
|
$
|
95,746
|
|
$
|
230,210
|
|
$
|
303,250
|
Water handling and
treatment–Antero Resources
|
|
162,283
|
|
|
155,954
|
|
|
282,267
|
Gathering and
compression–third party
|
|
—
|
|
|
382
|
|
|
835
|
Water handling and
treatment–third party
|
|
8,245
|
|
|
778
|
|
|
—
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
3,859
|
Total
revenue
|
|
266,274
|
|
|
387,324
|
|
|
590,211
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
48,821
|
|
|
78,852
|
|
|
161,587
|
General and
administrative (including $11,618, $22,470 and $26,049 of
equity-based compensation in 2014, 2015, and 2016,
respectively)
|
|
30,366
|
|
|
51,206
|
|
|
54,163
|
Depreciation
|
|
53,029
|
|
|
86,670
|
|
|
99,861
|
Accretion of contingent
acquisition consideration
|
|
—
|
|
|
3,333
|
|
|
16,489
|
Total operating
expenses
|
|
132,216
|
|
|
220,061
|
|
|
332,100
|
Operating
income
|
|
134,058
|
|
|
167,263
|
|
|
258,111
|
Interest expense,
net
|
|
(6,183)
|
|
|
(8,158)
|
|
|
(21,893)
|
Equity in earnings of
unconsolidated affiliate
|
|
—
|
|
|
—
|
|
|
485
|
Net income and
comprehensive income
|
|
127,875
|
|
|
159,105
|
|
|
236,703
|
Pre-IPO net income
attributed to parent
|
|
(98,219)
|
|
|
—
|
|
|
—
|
Pre-Water Acquisition
net income attributed to parent
|
|
(22,234)
|
|
|
(40,193)
|
|
|
—
|
General partner
interest in net income attributable to incentive distribution
rights
|
|
—
|
|
|
(1,264)
|
|
|
(16,944)
|
Limited partners'
interest in net income
|
$
|
7,422
|
|
$
|
117,648
|
|
$
|
219,759
|
Net income per limited
partner unit:
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Common
units
|
$
|
0.05
|
|
$
|
0.76
|
|
$
|
1.24
|
Subordinated
units
|
$
|
0.05
|
|
$
|
0.73
|
|
$
|
1.24
|
Diluted:
|
|
|
|
|
|
|
|
|
Common
units
|
$
|
0.05
|
|
$
|
0.76
|
|
$
|
1.24
|
Subordinated
units
|
$
|
0.05
|
|
$
|
0.73
|
|
$
|
1.24
|
Weighted average number
of limited partner units outstanding:
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Common
units
|
|
75,941
|
|
|
82,538
|
|
|
100,706
|
Subordinated
units
|
|
75,941
|
|
|
75,941
|
|
|
75,941
|
Diluted:
|
|
|
|
|
|
|
|
|
Common
units
|
|
75,941
|
|
|
82,586
|
|
|
100,860
|
Subordinated
units
|
|
75,941
|
|
|
75,941
|
|
|
75,941
|
ANTERO MIDSTREAM
PARTNERS LP Combined Consolidated Results of Segment
Operations
Three Months Ended December 31, 2015, and 2016
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water
|
|
|
|
|
|
Gathering and
|
|
Handling
and
|
|
Consolidated
|
|
|
Processing
|
|
Treatment
|
|
Total
|
Three Months Ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenue - Antero
Resources
|
|
$
|
62,154
|
|
$
|
69,195
|
|
$
|
131,349
|
Revenue -
third-party
|
|
|
344
|
|
|
—
|
|
|
344
|
Total
revenues
|
|
|
62,498
|
|
|
69,195
|
|
|
131,693
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
5,966
|
|
|
34,056
|
|
|
40,022
|
General and
administrative (before equity-based compensation)
|
|
|
6,141
|
|
|
2,335
|
|
|
8,476
|
Equity-based
compensation
|
|
|
3,622
|
|
|
1,185
|
|
|
4,807
|
Depreciation
|
|
|
16,090
|
|
|
7,065
|
|
|
23,155
|
Accretion of
contingent acquisition consideration
|
|
|
—
|
|
|
3,333
|
|
|
3,333
|
Total
expenses
|
|
|
31,819
|
|
|
47,974
|
|
|
79,793
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
30,679
|
|
$
|
21,221
|
|
$
|
51,900
|
|
|
|
|
|
|
|
|
|
|
Segment and
consolidated Adjusted EBITDA
|
|
$
|
50,391
|
|
$
|
32,804
|
|
$
|
83,195
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2016
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenue - Antero
Resources
|
|
$
|
84,312
|
|
$
|
78,517
|
|
$
|
162,829
|
Revenue -
third-party
|
|
|
166
|
|
|
—
|
|
|
166
|
Gain on sale of
assets
|
|
|
3,859
|
|
|
—
|
|
|
3,859
|
Total
revenues
|
|
|
88,337
|
|
|
78,517
|
|
|
166,854
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
7,531
|
|
|
29,105
|
|
|
36,636
|
General and
administrative (before equity-based compensation)
|
|
|
5,265
|
|
|
2,503
|
|
|
7,768
|
Equity-based
compensation
|
|
|
4,812
|
|
|
1,871
|
|
|
6,683
|
Depreciation
|
|
|
17,837
|
|
|
7,924
|
|
|
25,761
|
Accretion of
contingent acquisition consideration
|
|
|
—
|
|
|
6,105
|
|
|
6,105
|
Total
expenses
|
|
|
35,445
|
|
|
47,508
|
|
|
82,953
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
52,892
|
|
$
|
31,009
|
|
$
|
83,901
|
|
|
|
|
|
|
|
|
|
|
Segment and
consolidated Adjusted EBITDA
|
|
$
|
79,384
|
|
$
|
46,909
|
|
$
|
126,293
|
ANTERO MIDSTREAM
PARTNERS LP Combined Consolidated Results of Segment
Operations
Year Ended December 31, 2015, and 2016
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water
|
|
|
|
|
|
Gathering and
|
|
Handling
and
|
|
Consolidated
|
|
|
Processing
|
|
Treatment
|
|
Total
|
Year Ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenue - Antero
Resources
|
|
$
|
230,210
|
|
$
|
155,954
|
|
$
|
386,164
|
Revenue -
third-party
|
|
|
382
|
|
|
778
|
|
|
1,160
|
Total
revenues
|
|
|
230,592
|
|
|
156,732
|
|
|
387,324
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
25,783
|
|
|
53,069
|
|
|
78,852
|
General and
administrative (before equity-based compensation)
|
|
|
22,608
|
|
|
6,128
|
|
|
28,736
|
Equity-based
compensation
|
|
|
17,840
|
|
|
4,630
|
|
|
22,470
|
Depreciation
|
|
|
60,838
|
|
|
25,832
|
|
|
86,670
|
Accretion of
contingent acquisition consideration
|
|
|
—
|
|
|
3,333
|
|
|
3,333
|
Total
expenses
|
|
|
127,069
|
|
|
92,992
|
|
|
220,061
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
103,523
|
|
$
|
63,740
|
|
$
|
167,263
|
|
|
|
|
|
|
|
|
|
|
Segment and
consolidated Adjusted EBITDA
|
|
$
|
182,201
|
|
$
|
97,535
|
|
$
|
279,736
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2016
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenue - Antero
Resources
|
|
$
|
303,250
|
|
$
|
282,267
|
|
$
|
585,517
|
Revenue -
third-party
|
|
|
835
|
|
|
—
|
|
|
835
|
Gain on sale of
assets
|
|
|
3,859
|
|
|
—
|
|
|
3,859
|
Total
revenues
|
|
|
307,944
|
|
|
282,267
|
|
|
590,211
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
27,289
|
|
|
134,298
|
|
|
161,587
|
General and
administrative (before equity-based compensation)
|
|
|
20,118
|
|
|
7,996
|
|
|
28,114
|
Equity-based
compensation
|
|
|
19,714
|
|
|
6,335
|
|
|
26,049
|
Depreciation
|
|
|
69,962
|
|
|
29,899
|
|
|
99,861
|
Accretion of
contingent acquisition consideration
|
|
|
—
|
|
|
16,489
|
|
|
16,489
|
Total
expenses
|
|
|
137,083
|
|
|
195,017
|
|
|
332,100
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
170,861
|
|
$
|
87,250
|
|
$
|
258,111
|
|
|
|
|
|
|
|
|
|
|
Segment and
consolidated Adjusted EBITDA
|
|
$
|
264,380
|
|
$
|
139,973
|
|
$
|
404,353
|
ANTERO MIDSTREAM
PARTNERS LP Selected Operating Data
Three Months Ended December 31, 2015, and 2016
(In thousands, except average realized fees)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
December
31,
|
|
Amount
of
Increase
|
|
Percentage
|
|
|
2015
|
|
2016
|
|
(Decrease)
|
|
Change
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue - Antero
Resources
|
|
$
|
131,349
|
|
$
|
162,829
|
|
$
|
31,480
|
|
24
|
%
|
Revenue -
third-party
|
|
|
344
|
|
|
166
|
|
|
(178)
|
|
(52)
|
%
|
Gain on sale of
assets
|
|
|
—
|
|
|
3,859
|
|
|
3,859
|
|
*
|
|
Total
revenue
|
|
|
131,693
|
|
|
166,854
|
|
|
35,161
|
|
27
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
40,022
|
|
|
36,636
|
|
|
(3,386)
|
|
(8)
|
%
|
General and
administrative (before equity-based compensation)
|
|
|
8,476
|
|
|
7,768
|
|
|
(708)
|
|
(8)
|
%
|
Equity-based
compensation
|
|
|
4,807
|
|
|
6,683
|
|
|
1,876
|
|
39
|
%
|
Depreciation
|
|
|
23,155
|
|
|
25,761
|
|
|
2,606
|
|
11
|
%
|
Accretion of contingent
acquisition consideration
|
|
|
3,333
|
|
|
6,105
|
|
|
2,772
|
|
83
|
%
|
Total operating
expenses
|
|
|
79,793
|
|
|
82,953
|
|
|
3,160
|
|
4
|
%
|
Operating
income
|
|
|
51,900
|
|
|
83,901
|
|
|
32,003
|
|
62
|
%
|
Interest
expense
|
|
|
(2,892)
|
|
|
(9,008)
|
|
|
(6,116)
|
|
211
|
%
|
Equity in earnings of
unconsolidated affiliate
|
|
|
—
|
|
|
(1,542)
|
|
|
(1,542)
|
|
*
|
|
Net income
|
|
$
|
49,008
|
|
$
|
73,351
|
|
$
|
24,343
|
|
50
|
%
|
Adjusted
EBITDA
|
|
$
|
83,195
|
|
$
|
126,293
|
|
$
|
43,098
|
|
52
|
%
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering—low pressure
(MMcf)
|
|
|
103,388
|
|
|
140,052
|
|
|
36,664
|
|
35
|
%
|
Gathering—high pressure
(MMcf)
|
|
|
109,931
|
|
|
132,206
|
|
|
22,275
|
|
20
|
%
|
Compression
(MMcf)
|
|
|
43,932
|
|
|
84,654
|
|
|
40,722
|
|
93
|
%
|
Condensate gathering
(MBbl)
|
|
|
366
|
|
|
5
|
|
|
(361)
|
|
(99)
|
%
|
Fresh water
distribution (MBbl)
|
|
|
11,011
|
|
|
13,771
|
|
|
2,760
|
|
25
|
%
|
Wells serviced by fresh
water delivery
|
|
|
35
|
|
|
35
|
|
|
—
|
|
0
|
%
|
Gathering—low pressure
(MMcf/d)
|
|
|
1,124
|
|
|
1,522
|
|
|
398
|
|
35
|
%
|
Gathering—high pressure
(MMcf/d)
|
|
|
1,195
|
|
|
1,437
|
|
|
242
|
|
20
|
%
|
Compression
(MMcf/d)
|
|
|
478
|
|
|
920
|
|
|
442
|
|
93
|
%
|
Condensate gathering
(MBbl/d)
|
|
|
3,978
|
|
|
—
|
|
|
(3,978)
|
|
(99)
|
%
|
Fresh water delivery
(MBbl/d)
|
|
|
120
|
|
|
150
|
|
|
30
|
|
32
|
%
|
Average realized
fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gathering—low
pressure fee ($/Mcf)
|
|
$
|
0.31
|
|
$
|
0.31
|
|
$
|
—
|
|
*
|
|
Average gathering—high
pressure fee ($/Mcf)
|
|
$
|
0.19
|
|
$
|
0.19
|
|
$
|
—
|
|
*
|
|
Average compression fee
($/Mcf)
|
|
$
|
0.19
|
|
$
|
0.19
|
|
$
|
—
|
|
*
|
|
Average
gathering—condensate fee ($/Bbl)
|
|
$
|
4.16
|
|
$
|
4.17
|
|
$
|
0.01
|
|
*
|
|
Average fresh water
delivery fee - Antero Resources ($/Bbl)
|
|
$
|
3.66
|
|
$
|
3.68
|
|
$
|
0.02
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Not meaningful or
applicable.
|
ANTERO MIDSTREAM
PARTNERS LP Selected Operating Data
Year Ended December 31, 2015, and 2016
(In thousands, except average realized fees)
|
|
|
|
|
|
|
|
|
|
Amount
of
|
|
|
|
|
|
Year ended
December 31,
|
|
Increase
|
|
Percentage
|
|
|
2015
|
|
2016
|
|
(Decrease)
|
|
Change
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue - Antero
Resources
|
|
$
|
386,164
|
|
$
|
585,517
|
|
$
|
199,353
|
|
52
|
%
|
Revenue -
third-party
|
|
|
1,160
|
|
|
835
|
|
|
(325)
|
|
(28)
|
%
|
Gain on sale of
assets
|
|
|
—
|
|
|
3,859
|
|
|
3,859
|
|
*
|
|
Total
revenue
|
|
|
387,324
|
|
|
590,211
|
|
|
202,887
|
|
52
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
78,852
|
|
|
161,587
|
|
|
82,735
|
|
105
|
%
|
General and
administrative (before equity-based compensation)
|
|
|
28,736
|
|
|
28,114
|
|
|
(622)
|
|
(2)
|
%
|
Equity-based
compensation
|
|
|
22,470
|
|
|
26,049
|
|
|
3,579
|
|
16
|
%
|
Depreciation
|
|
|
86,670
|
|
|
99,861
|
|
|
13,191
|
|
15
|
%
|
Accretion of contingent
acquisition consideration
|
|
|
3,333
|
|
|
16,489
|
|
|
13,156
|
|
395
|
%
|
Total operating
expenses
|
|
|
220,061
|
|
|
332,100
|
|
|
112,039
|
|
51
|
%
|
Operating
income
|
|
|
167,263
|
|
|
258,111
|
|
|
90,848
|
|
54
|
%
|
Interest
expense
|
|
|
(8,158)
|
|
|
(21,893)
|
|
|
(13,735)
|
|
168
|
%
|
Equity in earnings of
unconsolidated affiliate
|
|
|
—
|
|
|
485
|
|
|
485
|
|
*
|
|
Net income
|
|
$
|
159,105
|
|
$
|
236,703
|
|
$
|
77,598
|
|
49
|
%
|
Adjusted
EBITDA(1)
|
|
$
|
279,736
|
|
$
|
404,353
|
|
$
|
124,617
|
|
45
|
%
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering—low pressure
(MMcf)
|
|
|
370,830
|
|
|
513,390
|
|
|
142,560
|
|
38
|
%
|
Gathering—high pressure
(MMcf)
|
|
|
432,861
|
|
|
481,646
|
|
|
48,785
|
|
11
|
%
|
Compression
(MMcf)
|
|
|
157,515
|
|
|
271,060
|
|
|
113,545
|
|
72
|
%
|
Condensate gathering
(MBbl)
|
|
|
1,117
|
|
|
503
|
|
|
(614)
|
|
(55)
|
%
|
Fresh water delivery
(MBbl)
|
|
|
35,044
|
|
|
45,112
|
|
|
10,068
|
|
29
|
%
|
Wells serviced by fresh
water delivery
|
|
|
124
|
|
|
131
|
|
|
7
|
|
6
|
%
|
Gathering—low pressure
(MMcf/d)
|
|
|
1,016
|
|
|
1,403
|
|
|
387
|
|
38
|
%
|
Gathering—high pressure
(MMcf/d)
|
|
|
1,186
|
|
|
1,316
|
|
|
130
|
|
11
|
%
|
Compression
(MMcf/d)
|
|
|
432
|
|
|
741
|
|
|
309
|
|
72
|
%
|
Condensate gathering
(MBbl/d)
|
|
|
3
|
|
|
1
|
|
|
(2)
|
|
(55)
|
%
|
Fresh water delivery
(MBbl/d)
|
|
|
96
|
|
|
123
|
|
|
27
|
|
29
|
%
|
Average realized
fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gathering—low
pressure fee ($/Mcf)
|
|
$
|
0.31
|
|
$
|
0.31
|
|
$
|
—
|
|
*
|
|
Average gathering—high
pressure fee ($/Mcf)
|
|
$
|
0.19
|
|
$
|
0.19
|
|
$
|
—
|
|
*
|
|
Average compression fee
($/Mcf)
|
|
$
|
0.19
|
|
$
|
0.19
|
|
$
|
—
|
|
*
|
|
Average
gathering—condensate fee ($/Bbl)
|
|
$
|
4.16
|
|
$
|
4.17
|
|
$
|
0.01
|
|
*
|
|
Average fresh water
delivery fee - Antero Resources ($/Bbl)
|
|
$
|
3.64
|
|
$
|
3.68
|
|
$
|
0.04
|
|
1
|
%
|
|
|
*
|
Not meaningful or
applicable.
|
ANTERO MIDSTREAM
PARTNERS LP Condensed Combined Consolidated Statements of
Cash Flows
Year Ended December 31, 2014, 2015, and 2016
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2015
|
|
2016
|
Cash flows provided
by (used in) operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
$
|
127,875
|
|
$
|
159,105
|
|
$
|
236,703
|
Adjustment to reconcile
net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
53,029
|
|
|
86,670
|
|
|
99,861
|
Accretion of
contingent acquisition consideration
|
|
—
|
|
|
3,333
|
|
|
16,489
|
Equity-based
compensation
|
|
11,618
|
|
|
22,470
|
|
|
26,049
|
Equity in earnings of
unconsolidated affiliate
|
|
—
|
|
|
—
|
|
|
(485)
|
Distribution of
earnings from unconsolidated affiliate
|
|
—
|
|
|
—
|
|
|
7,702
|
Amortization of
deferred financing costs
|
|
135
|
|
|
1,144
|
|
|
1,814
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
(3,859)
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable–Antero Resources
|
|
(29,988)
|
|
|
(35,148)
|
|
|
1,573
|
Accounts
receivable–third party
|
|
(5,574)
|
|
|
2,867
|
|
|
1,467
|
Prepaid
expenses
|
|
(518)
|
|
|
518
|
|
|
(529)
|
Accounts
payable
|
|
863
|
|
|
2,803
|
|
|
95
|
Accounts
payable–Antero Resources
|
|
1,059
|
|
|
475
|
|
|
1,055
|
Accrued
liabilities
|
|
10,934
|
|
|
15,441
|
|
|
(9,328)
|
Net cash provided by
operating activities
|
|
169,433
|
|
|
259,678
|
|
|
378,607
|
Cash flows provided
by (used in) investing activities:
|
|
|
|
|
|
|
|
|
Additions to gathering
and compression systems
|
|
(553,582)
|
|
|
(320,002)
|
|
|
(228,100)
|
Additions to water
handling and treatment systems
|
|
(200,116)
|
|
|
(132,633)
|
|
|
(188,220)
|
Amounts paid to Antero
Resources for gathering and compression systems
|
|
(40,277)
|
|
|
—
|
|
|
—
|
Investment in
unconsolidated affiliate
|
|
—
|
|
|
—
|
|
|
(75,516)
|
Proceeds from sale of
assets
|
|
—
|
|
|
—
|
|
|
10,000
|
Change in other
assets
|
|
(3,530)
|
|
|
7,180
|
|
|
3,673
|
Net cash used in
investing activities
|
|
(797,505)
|
|
|
(445,455)
|
|
|
(478,163)
|
Cash flows provided
by (used in) financing activities:
|
|
|
|
|
|
|
|
|
Deemed distribution to
Antero Resources, net
|
|
(5,375)
|
|
|
(52,669)
|
|
|
—
|
Distributions to
Antero Resources
|
|
(332,500)
|
|
|
(620,997)
|
|
|
—
|
Distributions to
unitholders
|
|
—
|
|
|
(107,248)
|
|
|
(182,446)
|
Issuance of senior
notes
|
|
—
|
|
|
—
|
|
|
650,000
|
Borrowings
(repayments) on bank credit facilities, net
|
|
115,000
|
|
|
505,000
|
|
|
(410,000)
|
Issuance of common
units, net of offering costs
|
|
1,087,224
|
|
|
240,703
|
|
|
65,395
|
Payments of deferred
financing costs
|
|
(4,871)
|
|
|
(2,059)
|
|
|
(10,435)
|
Employee tax
witholding for settlement of equity compensation awards
|
|
—
|
|
|
—
|
|
|
(5,636)
|
Other
|
|
(1,214)
|
|
|
(262)
|
|
|
(163)
|
Net cash provided by
(used in) financing activities
|
|
858,264
|
|
|
(37,532)
|
|
|
106,715
|
Net increase
(decrease) in cash and cash equivalents
|
|
230,192
|
|
|
(223,309)
|
|
|
7,159
|
Cash and cash
equivalents, beginning of period
|
|
—
|
|
|
230,192
|
|
|
6,883
|
Cash and cash
equivalents, end of period
|
$
|
230,192
|
|
$
|
6,883
|
|
$
|
14,042
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid during the
period for interest
|
$
|
5,864
|
|
$
|
7,765
|
|
$
|
13,494
|
Supplemental
disclosure of noncash investing activities:
|
|
|
|
|
|
|
|
|
Increase (decrease) in
accrued capital expenditures and accounts payable for property and
equipment
|
$
|
37,596
|
|
$
|
4,552
|
|
$
|
(8,471)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/antero-midstream-reports-fourth-quarter-and-full-year-2016-financial-and-operational-results-300415212.html
SOURCE Antero Midstream Partners LP