DENVER, Aug. 2, 2016 /PRNewswire/ -- Antero
Midstream Partners LP (NYSE: AM) ("Antero Midstream" or the
"Partnership") today released its second quarter 2016 financial
results. The relevant condensed combined consolidated
financial statements are included in Antero Midstream's Quarterly
Report on Form 10-Q for the quarter ended June 30, 2016, which has been filed with the
Securities and Exchange Commission.
Highlights Include:
- Net income of $50 million, or
$0.27 per unit, representing a per
unit increase of 108% compared to the prior year quarter
- Adjusted EBITDA of $88
million, a 36% increase compared to the prior year
quarter
- Net cash provided by operating activities was $86 million and distributable cash flow was
$78 million, resulting in DCF
coverage of 1.7x
- Declared a cash distribution of $0.25 per unit for the second quarter of 2016, a
32% increase compared to the prior year quarter and a 6% increase
sequentially
- Exercised option to acquire a 15% equity interest in the
Stonewall Gathering Pipeline for $45
million
- Increased acreage dedication from Antero Resources by
approximately 20%, pro forma for Antero Resources' recently
announced Marcellus core acreage acquisition which is expected to
close in the third quarter of 2016
Recent Developments
Distribution for the Second Quarter of 2016
The Board of Directors of Antero Resources Midstream Management
LLC, the general partner of the Partnership, declared a cash
distribution of $0.25 per unit
($1.00 per unit annualized) for the
second quarter of 2016. The distribution represents a 32% increase
compared to the prior year quarter and a 6% increase sequentially.
The distribution is the Partnership's sixth consecutive
quarterly distribution increase since its initial public offering
in November 2014 and will be payable
on August 24, 2016 to unitholders of
record as of August 10, 2016.
Exercise of Option to Acquire Stonewall Gathering
Pipeline
On May 26, 2016, Antero Midstream
exercised its option to acquire a 15% non-operated equity interest
in the Stonewall Gathering Pipeline for $45
million. The 1.4 Bcf/d pipeline was placed into service on
November 30, 2015 and is currently
gathering approximately 1.0 Bcf/d. Antero Resources is an
anchor shipper on the Stonewall Gathering Pipeline, with a minimum
volume commitment of 900 MMcf/d. The pipeline connects Antero
Resources' Marcellus production with an interconnect that feeds a
firm sales agreement as well as additional firm transportation to
current favorably priced markets. The transaction was
financed with borrowings on Antero Midstream's revolving credit
facility and had an effective date of May
26, 2016.
Second Quarter 2016 Financial Results
Antero Midstream's acquisition of Antero Resources'
integrated water business in 2015 was accounted for as a transfer
of entities under common control. As a result, the
Partnership recast its condensed combined consolidated financial
statements to retrospectively reflect the integrated water business
as if the assets and liabilities were owned for all past periods
presented. Beginning in the third quarter of 2015, and as a
result of the acquisition, Antero Midstream began reporting its
results through two business segments, Gathering and Compression
and Water Handling and Treatment. To facilitate year over
year comparison and discussion, the second quarter 2016 and second
quarter 2015 results discussed below include both the Gathering and
Compression and Water Handling and Treatment segment
operations.
The term "Adjusted EBITDA" discussed below reflects the
Gathering and Compression and Water Handling and Treatment segments
on a recast combined basis, while the term "Adjusted EBITDA
attributable to the Partnership" reflects contribution from the
Water Handling and Treatment segments only after the third quarter
of 2015 based on the actual timing of the acquired assets.
For a reconciliation of net income to Adjusted EBITDA, please
read "Non-GAAP Financial Measures".
Low pressure gathering volumes for the second quarter of 2016
averaged 1,353 MMcf/d, a 40% increase from the second quarter of
2015 and a 4% increase sequentially. High pressure gathering
volumes for the second quarter of 2016 averaged 1,253 MMcf/d, a 5%
increase from the second quarter of 2015 and a 3% increase
sequentially. Compression volumes for the second quarter of
2016 averaged 658 MMcf/d, a 45% increase from the second quarter of
2015 and a 9% increase sequentially. The increase in
gathering and compression volumes was due to production growth from
Antero Resources in Antero Midstream's area of dedication.
Condensate gathering volumes averaged 1,983 Bbl/d during the
quarter, a 34% decrease compared to the prior year quarter and a
33% decrease sequentially. The sequential decrease in condensate
gathering volumes was driven by Antero shifting Ohio Utica Shale
development from its Highly-Rich Gas/Condensate area to higher rate
of return drilling in the Highly-Rich Gas area, as well as the
shifting of Antero Resources' development program to the Marcellus
Shale from the Utica Shale, due to the firm transportation
constraints to favorable markets in the Utica Shale. Fresh
water delivery volumes averaged 105,379 Bbl/d during the quarter,
an 11% increase compared to the prior year quarter and an 8%
increase sequentially. The increase in volumes was driven by
accelerated Marcellus completions and an increase in the average
water used per foot in completions to 41 barrels, a 25% increase as
compared to 2015 and 11% increase compared to the first quarter of
2016.
|
|
Three Months
Ended
June
30,
|
|
|
|
Average Daily
Throughput:
|
|
2015
|
|
2016
|
|
%
Change
|
|
Low Pressure Gathering
(MMcf/d)
|
|
965
|
|
1,353
|
|
40%
|
|
Compression
(MMcf/d)
|
|
454
|
|
658
|
|
45%
|
|
High Pressure
Gathering (MMcf/d)
|
|
1,197
|
|
1,253
|
|
5%
|
|
Condensate Gathering
(Bbl/d)
|
|
2,989
|
|
1,983
|
|
(34)%
|
|
|
|
|
|
|
|
|
Average Daily
Volumes:
|
|
|
|
|
|
|
Fresh Water Delivery
(Bbl/d)
|
|
95,228
|
|
105,379
|
|
11%
|
|
For the three months ended June 30,
2016, the Partnership reported revenues of $137 million, comprised of $72 million in revenues from the Gathering and
Compression segment and $65 million
in revenues from the Water Handling and Treatment segment. Revenues
increased 55% compared to the prior year quarter, primarily driven
by the startup of produced water handling and high rate transfer
services in the first quarter of 2016. Water Handling and Treatment
segment revenues include $30 million
from produced water handling and high rate water transfer services
provided to Antero Resources billed at cost plus 3%.
Direct operating expenses for the Gathering and Compression and
Water Handling and Treatment segments were $8 million and $35
million, respectively, for a total of $43 million. Water Handling and Treatment direct
operating expenses include $29
million from produced water handling and high rate water
transfer services. Direct operating expenses increased 138% year
over year, driven primarily by the inclusion of produced water
handling and high rate water transfer services, as well as the
expansion of the Partnership's gathering and compression and fresh
water delivery assets to support the production growth of Antero
Resources. General and administrative expenses were
$7 million during the second quarter
of 2016, an increase of 17% compared to the second quarter of 2015.
Total cash and non-cash operating expenses were $84 million, including $24
million of depreciation, $7
million of equity-based compensation, and $3 million of accretion of contingent acquisition
consideration.
Net income for the second quarter of 2016 was $50 million, a 42% increase compared to the prior
year quarter. Adjusted EBITDA was $88
million, a 36% increase compared to the prior year quarter.
The increase in net income and Adjusted EBITDA is due to increased
gathering and compression volumes and fresh water delivery
volumes. Cash interest expense and cash reserved for payment
of income tax withholding upon vesting of Antero Midstream
equity-based compensation awards were $4
million and $1 million,
respectively. Maintenance capital expenditures during the quarter
totaled $6 million and distributable
cash flow was $78 million, resulting
in a DCF coverage ratio of 1.7x.
Reconciliation of
Net Income to Adjusted EBITDA and DCF (Dollars in
thousands):
|
Three months
ended
|
June
30,
|
|
2015
|
|
2016
|
Net income
|
$
|
35,124
|
|
$
|
49,912
|
Add:
|
|
|
|
|
|
Interest expense
|
|
1,636
|
|
|
3,879
|
Depreciation expense
|
|
21,253
|
|
|
24,140
|
Accretion of contingent acquisition consideration
|
|
—
|
|
|
3,461
|
Equity-based compensation
|
|
6,597
|
|
|
6,793
|
Less:
|
|
|
|
|
|
Equity in earnings of unconsolidated affiliate
|
|
—
|
|
|
484
|
Adjusted
EBITDA
|
$
|
64,610
|
|
$
|
87,701
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
Pre-water acquisition net income attributed to parent
|
|
15,674
|
|
|
—
|
Pre-water acquisition depreciation expense attributed to
parent
|
|
6,162
|
|
|
—
|
Pre-water acquisition equity-based compensation expense attributed
to parent
|
|
1,209
|
|
|
—
|
Pre-water acquisition interest expense attributed to
parent
|
|
793
|
|
|
—
|
Adjusted EBITDA
attributable to the Partnership
|
$
|
40,772
|
|
$
|
87,701
|
Less:
|
|
|
|
|
|
Cash interest paid, net
- attributable to the Partnership
|
|
598
|
|
|
4,264
|
Cash reserved for
payment of income tax withholding upon vesting of Antero Midstream
equity-based compensation awards(1)
|
|
—
|
|
|
1,000
|
Maintenance capital
expenditures
|
|
3,379
|
|
|
5,710
|
Add:
|
|
|
|
|
|
Cash distribution to be
received from unconsolidated affiliate(2)
|
|
—
|
|
|
778
|
Distributable cash
flow
|
$
|
36,795
|
|
$
|
77,505
|
|
|
|
|
|
|
Total distributions
declared
|
$
|
28,858
|
|
$
|
46,775
|
|
|
|
|
|
|
DCF coverage
ratio
|
|
1.28x
|
|
|
1.66x
|
|
|
|
|
|
|
|
|
1)
|
Estimate of current
period portion of expected cash payment for income tax withholding
attributable to vesting of Antero Midstream LTIP equity-based
compensation awards to be paid in the fourth quarter of
2016.
|
2)
|
Based on management
estimate from exercise date of May 26, 2016 through June 30,
2016.
|
Balance Sheet and Liquidity
As of June 30, 2016, Antero
Midstream had $9 million of cash on
its balance sheet and $760 million
drawn on its $1.5 billion bank credit
facility, resulting in $749 million
in available liquidity.
Capital Spending
Capital expenditures, excluding acquisitions, were $90 million in the second quarter of 2016 as
compared to $86 million in the second
quarter of 2015. Capital invested in gathering and
compression assets was $48 million
and capital invested in water handling and treatment assets was
$42 million, including $33 million invested in the Antero Clearwater
Facility. Additionally, Antero Midstream's capital investment
for acquiring a 15% interest in the Stonewall Gathering Pipeline
was $45 million during the
quarter.
Conference Call
Antero Midstream will hold a call on Wednesday, August 3, 2016 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. To participate in the call, dial
in at 888-347-8204 (U.S.), 855-669-9657 (Canada), or 412-902-4229 (International) and
reference "Antero Midstream". A telephone replay of the call
will be available until Friday, August 12,
2016 at 10:00 am MT at
877-870-5176 (U.S.) or 858-384-5517 (International) using the
passcode 10086426.
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, August 12, 2016 at 10:00 am MT.
Presentation
An updated presentation will be posted to the Partnership's
website before the August 3, 2016
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, 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 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.
ANTERO MIDSTREAM
PARTNERS LP
|
Condensed Combined
Consolidated Balance Sheets
|
December 31, 2015 and June 30,
2016
|
(Unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
June
30,
|
|
|
2015
|
|
2016
|
Assets
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,883
|
|
$
|
8,684
|
Accounts
receivable–Antero
|
|
|
65,712
|
|
|
54,794
|
Accounts
receivable–third party
|
|
|
2,707
|
|
|
1,259
|
Prepaid
expenses
|
|
|
—
|
|
|
106
|
Total current
assets
|
|
|
75,302
|
|
|
64,843
|
Property and
equipment:
|
|
|
|
|
|
|
Gathering and
compressions systems
|
|
|
1,485,835
|
|
|
1,579,568
|
Water handling and
treatment systems
|
|
|
565,616
|
|
|
655,251
|
|
|
|
2,051,451
|
|
|
2,234,819
|
Less accumulated
depreciation
|
|
|
(157,625)
|
|
|
(205,588)
|
Property and
equipment, net
|
|
|
1,893,826
|
|
|
2,029,231
|
Investment in
unconsolidated affiliate
|
|
|
—
|
|
|
45,528
|
Other assets,
net
|
|
|
10,904
|
|
|
13,268
|
Total
assets
|
|
$
|
1,980,032
|
|
$
|
2,152,870
|
Liabilities and
partners' capital
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
10,941
|
|
$
|
19,206
|
Accounts
payable–Antero
|
|
|
2,138
|
|
|
2,142
|
Accrued capital
expenditures
|
|
|
50,022
|
|
|
54,043
|
Accrued ad valorem
taxes
|
|
|
7,195
|
|
|
9,737
|
Accrued
liabilities
|
|
|
28,168
|
|
|
16,789
|
Other current
liabilities
|
|
|
150
|
|
|
158
|
Total current
liabilities
|
|
|
98,614
|
|
|
102,075
|
Long-term
liabilities:
|
|
|
|
|
|
|
Long-term
debt
|
|
|
620,000
|
|
|
760,000
|
Contingent acquisition
consideration
|
|
|
178,049
|
|
|
184,906
|
Other
|
|
|
624
|
|
|
543
|
Total
liabilities
|
|
|
897,287
|
|
|
1,047,524
|
|
|
|
|
|
|
|
Partners'
capital:
|
|
|
|
|
|
|
Common unitholders -
public (59,286 units and 67,302 units issued and outstanding at
December 31, 2015 and June 30, 2016, respectively)
|
|
|
1,351,317
|
|
|
1,364,766
|
Common unitholder -
Antero (40,929 units and 32,929 units issued and outstanding at
December 31, 2015 and June 30, 2016, respectively)
|
|
|
30,186
|
|
|
29,799
|
Subordinated unitholder
- Antero (75,941 units issued and outstanding at December 31, 2015
and June 30, 2016)
|
|
|
(299,727)
|
|
|
(291,950)
|
General
partner
|
|
|
969
|
|
|
2,731
|
Total partners'
capital
|
|
|
1,082,745
|
|
|
1,105,346
|
Total
liabilities and partners' capital
|
|
$
|
1,980,032
|
|
$
|
2,152,870
|
ANTERO MIDSTREAM
PARTNERS LP
|
Condensed Combined
Consolidated Statements of Operations and Comprehensive
Income
|
Three Months Ended
June 30, 2015, and 2016
|
(Unaudited)
|
(In thousands, except
per unit amounts)
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
|
2015
|
|
2016
|
|
|
|
Revenue:
|
|
|
|
|
|
|
Gathering and
compression–Antero
|
|
$
|
56,593
|
|
$
|
71,715
|
Water handling and
treatment–Antero
|
|
|
31,500
|
|
|
64,893
|
Gathering and
compression–third party
|
|
|
—
|
|
|
202
|
Total
revenue
|
|
|
88,093
|
|
|
136,810
|
Operating
expenses:
|
|
|
|
|
|
|
Direct
operating
|
|
|
17,921
|
|
|
42,597
|
General and
administrative (including $6,597 and $6,793 of equity-based
compensation in 2015 and 2016, respectively)
|
|
|
12,159
|
|
|
13,305
|
Depreciation
|
|
|
21,253
|
|
|
24,140
|
Accretion of
contingent acquisition consideration
|
|
|
—
|
|
|
3,461
|
Total operating
expenses
|
|
|
51,333
|
|
|
83,503
|
Operating
income
|
|
|
36,760
|
|
|
53,307
|
Interest expense,
net
|
|
|
(1,636)
|
|
|
(3,879)
|
Equity in earnings of
unconsolidated affiliate
|
|
|
—
|
|
|
484
|
Net income and
comprehensive income
|
|
|
35,124
|
|
|
49,912
|
Pre-water acquisition
net income attributed to parent
|
|
|
(15,674)
|
|
|
—
|
General partner
interest in net income attributable to incentive distribution
rights
|
|
|
—
|
|
|
(2,731)
|
Limited
partners' interest in net income
|
|
$
|
19,450
|
|
$
|
47,181
|
Net income per limited
partner unit:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Common
units
|
|
$
|
0.13
|
|
$
|
0.27
|
Subordinated
units
|
|
$
|
0.13
|
|
$
|
0.27
|
Diluted:
|
|
|
|
|
|
|
Common
units
|
|
$
|
0.13
|
|
$
|
0.27
|
Subordinated
units
|
|
$
|
0.13
|
|
$
|
0.27
|
Weighted average number
of limited partner units outstanding:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Common
units
|
|
|
75,941
|
|
|
100,231
|
Subordinated
units
|
|
|
75,941
|
|
|
75,941
|
Diluted:
|
|
|
|
|
|
|
Common
units
|
|
|
75,958
|
|
|
100,285
|
Subordinated units
|
|
|
75,941
|
|
|
75,941
|
ANTERO MIDSTREAM
PARTNERS LP
|
Condensed Combined
Consolidated Statements of Operations and Comprehensive
Income
|
Six Months Ended June
30, 2015, and 2016
|
(Unaudited)
|
(In thousands, except
per unit amounts)
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30,
|
|
|
2015
|
|
2016
|
|
|
|
Revenue:
|
|
|
|
|
|
|
Gathering and
compression–Antero
|
|
$
|
108,836
|
|
$
|
141,066
|
Water handling and
treatment–Antero
|
|
|
64,941
|
|
|
131,339
|
Gathering and
compression–third party
|
|
|
—
|
|
|
477
|
Water handling and
treatment–third party
|
|
|
151
|
|
|
—
|
Total
revenue
|
|
|
173,928
|
|
|
272,882
|
Operating
expenses:
|
|
|
|
|
|
|
Direct
operating
|
|
|
37,222
|
|
|
91,738
|
General and
administrative (including $12,376 and $12,766 of equity-based
compensation in 2015 and 2016, respectively)
|
|
|
24,078
|
|
|
26,397
|
Depreciation
|
|
|
41,955
|
|
|
47,963
|
Accretion of contingent
acquisition consideration
|
|
|
—
|
|
|
6,857
|
Total operating
expenses
|
|
|
103,255
|
|
|
172,955
|
Operating
income
|
|
|
70,673
|
|
|
99,927
|
Interest expense,
net
|
|
|
(3,222)
|
|
|
(7,582)
|
Equity in earnings of
unconsolidated affiliate
|
|
|
—
|
|
|
484
|
Net income and
comprehensive income
|
|
|
67,451
|
|
|
92,829
|
Pre-Water Acquisition
net income attributed to parent
|
|
|
(32,353)
|
|
|
—
|
General partner
interest in net income attributable to incentive distribution
rights
|
|
|
—
|
|
|
(4,581)
|
Limited
partners' interest in net income
|
|
$
|
35,098
|
|
$
|
88,248
|
Net income per limited
partner unit:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Common
units
|
|
$
|
0.23
|
|
$
|
0.50
|
Subordinated
units
|
|
$
|
0.23
|
|
$
|
0.50
|
Diluted:
|
|
|
|
|
|
|
Common
units
|
|
$
|
0.23
|
|
$
|
0.50
|
Subordinated
units
|
|
$
|
0.23
|
|
$
|
0.50
|
Weighted average number
of limited partner units outstanding:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Common
units
|
|
|
75,941
|
|
|
100,226
|
Subordinated
units
|
|
|
75,941
|
|
|
75,941
|
Diluted:
|
|
|
|
|
|
|
Common
units
|
|
|
75,956
|
|
|
100,262
|
Subordinated
units
|
|
|
75,941
|
|
|
75,941
|
ANTERO MIDSTREAM
PARTNERS LP
|
Combined Consolidated
Results of Segment Operations
|
Three Months Ended
June 30, 2015, and 2016
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water
|
|
|
|
|
|
Gathering and
|
|
Handling and
|
|
Consolidated
|
|
|
Compression
|
|
Treatment
|
|
Total
|
Three months ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenue -
Antero
|
|
$
|
56,593
|
|
$
|
31,500
|
|
$
|
88,093
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
11,292
|
|
|
6,629
|
|
|
17,921
|
General and
administrative (before equity-based compensation)
|
|
|
4,529
|
|
|
1,033
|
|
|
5,562
|
Equity-based
compensation
|
|
|
5,388
|
|
|
1,209
|
|
|
6,597
|
Depreciation
|
|
|
15,091
|
|
|
6,162
|
|
|
21,253
|
Total
expenses
|
|
|
36,300
|
|
|
15,033
|
|
|
51,333
|
|
|
$
|
20,293
|
|
$
|
16,467
|
|
$
|
36,760
|
Operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,392,898
|
|
$
|
416,909
|
|
$
|
1,809,807
|
Additions to property
and equipment
|
|
$
|
74,061
|
|
$
|
11,950
|
|
$
|
86,011
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenue -
Antero
|
|
$
|
71,715
|
|
$
|
64,893
|
|
$
|
136,608
|
Revenue -
third-party
|
|
|
202
|
|
|
—
|
|
|
202
|
Total
revenues
|
|
|
71,917
|
|
|
64,893
|
|
|
136,810
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
7,447
|
|
|
35,150
|
|
|
42,597
|
General and
administrative (before equity-based compensation)
|
|
|
4,837
|
|
|
1,675
|
|
|
6,512
|
Equity-based
compensation
|
|
|
5,301
|
|
|
1,492
|
|
|
6,793
|
Depreciation
|
|
|
16,964
|
|
|
7,176
|
|
|
24,140
|
Contingent acquisition
consideration accretion
|
|
|
-
|
|
|
3,461
|
|
|
3,461
|
Total
expenses
|
|
|
34,549
|
|
|
48,954
|
|
|
83,503
|
|
|
$
|
37,368
|
|
|
|
|
53,307
|
Operating
income
|
|
|
$
|
15,939
|
|
$
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,583,246
|
|
$
|
569,624
|
|
$
|
2,152,870
|
Additions to property
and equipment
|
|
$
|
48,283
|
|
$
|
41,589
|
|
$
|
89,872
|
ANTERO MIDSTREAM
PARTNERS LP
|
Combined Consolidated
Results of Segment Operations
|
Six Months Ended June
30, 2015, and 2016
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water
|
|
|
|
|
|
Gathering and
|
|
Handling and
|
|
Consolidated
|
|
|
Compression
|
|
Treatment
|
|
Total
|
Six months ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenue -
Antero
|
|
$
|
108,836
|
|
$
|
64,941
|
|
$
|
173,777
|
Revenue -
third-party
|
|
|
—
|
|
|
151
|
|
|
151
|
Total
revenues
|
|
|
108,836
|
|
|
65,092
|
|
|
173,928
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
22,981
|
|
|
14,241
|
|
|
37,222
|
General and
administrative (before equity-based compensation)
|
|
|
9,407
|
|
|
2,295
|
|
|
11,702
|
Equity-based
compensation
|
|
|
10,011
|
|
|
2,365
|
|
|
12,376
|
Depreciation
|
|
|
29,673
|
|
|
12,282
|
|
|
41,955
|
Total
expenses
|
|
|
72,072
|
|
|
31,183
|
|
|
103,255
|
|
|
$
|
36,764
|
|
$
|
33,909
|
|
$
|
70,673
|
Operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,392,898
|
|
$
|
416,909
|
|
$
|
1,809,807
|
Additions to property
and equipment
|
|
$
|
159,798
|
|
$
|
33,265
|
|
$
|
193,063
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenue -
Antero
|
|
$
|
141,066
|
|
$
|
131,339
|
|
$
|
272,405
|
Revenue -
third-party
|
|
|
477
|
|
|
—
|
|
|
477
|
Total
revenues
|
|
|
141,543
|
|
|
131,339
|
|
|
272,882
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
15,066
|
|
|
76,672
|
|
|
91,738
|
General and
administrative (before equity-based compensation)
|
|
|
9,785
|
|
|
3,846
|
|
|
13,631
|
Equity-based
compensation
|
|
|
9,688
|
|
|
3,078
|
|
|
12,766
|
Depreciation
|
|
|
33,826
|
|
|
14,137
|
|
|
47,963
|
Accretion of
contingent acquisition consideration
|
|
|
—
|
|
|
6,857
|
|
|
6,857
|
Total
expenses
|
|
|
68,365
|
|
|
104,590
|
|
|
172,955
|
|
|
$
|
73,178
|
|
$
|
26,749
|
|
$
|
99,927
|
Operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,583,246
|
|
$
|
569,624
|
|
$
|
2,152,870
|
Additions to property
and equipment
|
|
$
|
96,969
|
|
$
|
78,625
|
|
$
|
175,594
|
ANTERO MIDSTREAM
PARTNERS LP
|
Condensed Combined
Consolidated Statements of Cash Flows
|
Six Months Ended June
30, 2015, and 2016
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30,
|
|
|
|
2015
|
|
2016
|
|
Cash flows provided
by operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
67,451
|
|
$
|
92,829
|
|
Adjustment to reconcile
net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
41,955
|
|
|
47,963
|
|
Accretion of
contingent acquisition consideration
|
|
|
—
|
|
|
6,857
|
|
Equity-based
compensation
|
|
|
12,376
|
|
|
12,766
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
—
|
|
|
(484)
|
|
Amortization of
deferred financing costs
|
|
|
489
|
|
|
726
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable–Antero
|
|
|
6,375
|
|
|
10,918
|
|
Accounts
receivable–third party
|
|
|
5,574
|
|
|
1,448
|
|
Prepaid
expenses
|
|
|
309
|
|
|
(106)
|
|
Accounts
payable
|
|
|
1,103
|
|
|
4,515
|
|
Accounts
payable–Antero
|
|
|
50
|
|
|
4
|
|
Accrued ad valorem
tax
|
|
|
9,517
|
|
|
2,542
|
|
Accrued
liabilities
|
|
|
(107)
|
|
|
(11,379)
|
|
Net cash provided by
operating activities
|
|
|
145,092
|
|
|
168,599
|
|
Cash flows used in
investing activities:
|
|
|
|
|
|
|
|
Additions to gathering
and compression systems
|
|
|
(159,798)
|
|
|
(96,969)
|
|
Additions to water
handling and treatment systems
|
|
|
(33,265)
|
|
|
(78,625)
|
|
Investment in
unconsolidated affiliate
|
|
|
—
|
|
|
(45,044)
|
|
Change in other
assets
|
|
|
(126)
|
|
|
(3,090)
|
|
Net cash used in
investing activities
|
|
|
(193,189)
|
|
|
(223,728)
|
|
Cash flows provided
by (used in) financing activities:
|
|
|
|
|
|
|
|
Deemed distribution to
Antero, net
|
|
|
(65,385)
|
|
|
—
|
|
Distributions to
unitholders
|
|
|
(41,660)
|
|
|
(82,977)
|
|
Borrowings on bank
credit facilities, net
|
|
|
38,000
|
|
|
140,000
|
|
Payments of deferred
financing costs
|
|
|
(19)
|
|
|
—
|
|
Other
|
|
|
(164)
|
|
|
(93)
|
|
Net cash provided by
(used in) financing activities
|
|
|
(69,228)
|
|
|
56,930
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
(117,325)
|
|
|
1,801
|
|
Cash and cash
equivalents, beginning of period
|
|
|
230,192
|
|
|
6,883
|
|
Cash and cash
equivalents, end of period
|
|
$
|
112,867
|
|
$
|
8,684
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
Cash paid during the
period for interest
|
|
$
|
2,784
|
|
$
|
7,708
|
|
Supplemental
disclosure of noncash investing activities:
|
|
|
|
|
|
|
|
Increase (decrease) in
accrued capital expenditures and accounts payable for property and
equipment
|
|
$
|
(27,984)
|
|
$
|
7,770
|
|
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/antero-midstream-reports-second-quarter-2016-financial-results-300307944.html
SOURCE Antero Midstream Partners LP