CONE Midstream Partners LP (NYSE:CNNX) (“CONE Midstream” or the
“Partnership”) today reported financial and operational results for
the three months and the full year ending December 31,
2016.(1) The Partnership also announced financial guidance
for 2017.
Fourth Quarter Results
Highlights of fourth quarter 2016 results
attributable to the Partnership as compared to the fourth quarter
of 2015 include:
- Net income of $24.8 million as compared to $22.5 million
- Average daily throughput volumes of 933 billion Btu per day
(BBtu/d) as compared to 760 BBtu/d
- Net cash provided by operating activities of $37.2 million as
compared to $16.7 million
- Adjusted EBITDA(2) of $29.1 million as compared to $25.2
million
- Distributable cash flow (DCF)(2) of $24.7 million as compared
to $22.4 million
- Cash distribution coverage(2) of 1.37x on an as declared
basis
Full Year 2016 Results
Highlights of full year 2016 results attributable to the
Partnership as compared to full year 2015 include:
- Net income of $96.5 million as compared to $71.2 million
- Net cash provided by operating activities of $160.1 million as
compared to $116.0 million
- Adjusted EBITDA(2) of $110.5 million as compared to $80.3
million
- Distributable cash flow (DCF)(2) of $96.2 million as compared
to $70.9 million
Management Comment
"Our fourth quarter capped another year of
growth and strong financial and operating performance for CONE
Midstream," said John T. Lewis, Chief Executive Officer of CONE
Midstream GP LLC (the "General Partner"). "For the full year
2016, CNNX reported a 35% increase in net income, a 38% increase in
net cash provided by operating activities, a 38% increase in
Adjusted EBITDA over 2015 results, and distributable cash flow for
the year grew by 36%. Our cash distribution with respect to
the fourth quarter of $0.2724 per unit represents a 15.3% increase
over the distribution paid with respect to the fourth quarter of
2015.
"In addition, the quarter saw two significant
events for CONE," continued Mr. Lewis. "We completed the
acquisition of the remaining interest in the Anchor Systems, which
will provide additional support for distribution growth for the
future. Also, our Sponsors announced and closed a transaction
to separate their upstream joint venture, allowing each Sponsor to
have more flexibility in the timing and pace of development."
Quarterly Distribution
As previously announced, the Board of Directors
of the General Partner declared a quarterly cash distribution of
$0.2724 per unit with respect to the fourth quarter of 2016.
The distribution payment was made on February 14, 2017 to
unitholders of record on February 6, 2017. The distribution,
which equates to an annual rate of $1.0896 per unit, represents an
increase of 3.6% over the third quarter of 2016 and an increase of
15.3% over the distribution paid with respect to the fourth quarter
of 2015.
Capital Investment and
Resources
CONE Midstream's allocated fourth quarter 2016
share of investment in expansion projects was $4.8 million. Total
expansion capital investment at the three development companies in
which CONE Midstream holds controlling interests was $4.9
million. CONE Midstream's respective share of maintenance
capital expenditures for the three development companies for fourth
quarter 2016 was $3.8 million. Maintenance capital
expenditures in the aggregate for the development companies in
which CONE Midstream holds controlling interests totaled $5.3
million.
As of December 31, 2016, CONE Midstream had
outstanding borrowings of $167 million under its $250 million
revolving credit facility.
2017 Guidance
Based on current expectations, management is
providing the following guidance for 2017. Full year 2017 Adjusted
EBITDA(2) attributable to the Partnership is expected to be in the
range of $128 to $138 million and full year distributable cash
flow(2) attributable to the Partnership is expected to be in the
range of $105 to $115 million. Management currently anticipates
that 2017 capital expenditures attributable to the Partnership will
be in the range of $65 to $75 million, of which approximately $17
to $18 million will be for maintenance capital.
CONE Midstream’s financial guidance is based on
numerous assumptions about future events and conditions and,
therefore, could vary materially from actual results. These
estimates, including capital expenditure plans, are meant to
provide guidance only and are subject to revision for acquisitions
or operating environment changes.
Fourth Quarter and Full Year 2016
Financial and Operational Results Conference Call
A conference call and webcast, during which
management will discuss fourth quarter and full year 2016 financial
and operational results and guidance for 2017, is scheduled for
February 16, 2017 at 11:00 a.m. Eastern Time. Prepared
remarks by members of management will be followed by a question and
answer period. Interested parties may listen via webcast at
http://services.choruscall.com/links/cnnx170216.html. Participants
who would like to ask questions may join the conference by phone at
888-349-0097 (international 412-902-0126) five to ten minutes prior
to the scheduled start time (reference the CONE Midstream
call). An on-demand replay of the webcast will be also be
available at http://services.choruscall.com/links/cnnx170216.html
shortly after the conclusion of the conference call. A
telephonic replay will be available through March 2, 2017 by
dialing 877-344-7529 (international: 412-317-0088) and using the
conference playback number 10099756.
_______________
(1) Unless otherwise indicated, the reporting
measures included in this news release reflect the unallocated
total activity of the three development companies that have been
jointly owned by the Partnership and CONE Gathering LLC (“CONE
Gathering”) since completion of the Partnership’s initial public
offering ("IPO") in September 2014. Effective November 16,
2016, the Partnership acquired the remaining 25% controlling
interest in the Anchor Systems, which brought its controlling
interest in that system to 100%. The Partnership's current
financial interests in the development companies are: 100% in the
Anchor Systems, 5% in the Growth Systems, and 5% in the Additional
Systems. Because the Partnership owns a controlling interest
in each of the three development companies, it fully consolidates
their financial results. CONE Gathering is a midstream joint
venture formed by CONSOL Energy Inc. and Noble Energy, Inc. that
continues to own noncontrolling interests in two of the
Partnership’s development companies.
(2) Adjusted EBITDA, DCF and cash distribution
coverage are not Generally Accepted Accounting Principles (“GAAP”)
measures. Definitions and reconciliations of these non-GAAP
measures to their nearest comparable GAAP reporting measures appear
in the financial tables which follow.
* * * * *
CONE Midstream Partners is a master limited
partnership formed by CONSOL Energy Inc. (NYSE:CNX) and Noble
Energy, Inc. (NYSE:NBL), referred to as our Sponsors, to own,
operate, develop and acquire natural gas gathering and other
midstream energy assets to service our Sponsors' production in the
Marcellus Shale in Pennsylvania and West Virginia. Our assets
include natural gas gathering pipelines and compression and
dehydration facilities, as well as condensate gathering,
collection, separation and stabilization facilities.
* * * * *
This press release is intended to be a qualified
notice to nominees as provided for under Treasury Regulation
Section 1.1446-4(b). Brokers and nominees should treat one hundred
percent (100.0%) of CONE Midstream’s distributions to non-U.S.
investors as being attributed to income that is effectively
connected with a United States trade or business.
Accordingly, CONE Midstream's distributions to non-U.S. investors
are subject to federal income tax withholding at the highest
applicable effective tax rate. Nominees, and not CONE
Midstream, are treated as withholding agents responsible for
withholding on the distributions received by them on behalf of
foreign investors.
* * * * *
This press release contains forward-looking
statements within the meaning of the federal securities laws.
Statements that are predictive in nature, that depend upon or refer
to future events or conditions or that include the words "will,"
"believe," "expect," "anticipate," "intend," "estimate" and other
expressions that are predictions of or indicate future events and
trends and that do not relate to historical matters identify
forward-looking statements. You should not place undue reliance on
forward-looking statements. Forward-looking statements are
not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict, and
there can be no assurance that actual outcomes and results will not
differ materially from those expected by our management. You
should not place undue reliance on forward-looking statements.
Although forward-looking statements reflect our
good faith beliefs at the time they are made, they involve known
and unknown risks, uncertainties and other factors. For more
information concerning factors that could cause actual results to
differ materially from those conveyed in the forward-looking
statements, including, among others, that our business plans may
change as circumstances warrant, please refer to the "Risk Factors"
and "Forward-Looking Statements" sections of our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q. We undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events,
changed circumstances or otherwise, unless required by law.
|
CONE MIDSTREAM PARTNERS LP |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per unit
data) |
(unaudited) |
|
|
|
Three Months EndedDecember 31, |
|
Twelve Months EndedDecember 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenue |
|
|
|
|
|
|
|
|
Gathering
revenue — related party |
|
$ |
57,827 |
|
|
$ |
58,785 |
|
|
$ |
239,211 |
|
|
$ |
203,423 |
|
Total Revenue |
|
57,827 |
|
|
58,785 |
|
|
239,211 |
|
|
203,423 |
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
Operating
expense — third party |
|
6,084 |
|
|
6,781 |
|
|
30,405 |
|
|
28,987 |
|
Operating
expense — related party |
|
7,140 |
|
|
7,858 |
|
|
29,771 |
|
|
29,937 |
|
General
and administrative expense — third party |
|
1,978 |
|
|
911 |
|
|
5,174 |
|
|
4,444 |
|
General
and administrative expense — related party |
|
4,135 |
|
|
2,251 |
|
|
10,656 |
|
|
8,636 |
|
Pipe
revaluation |
|
— |
|
|
— |
|
|
10,083 |
|
|
— |
|
Depreciation expense |
|
5,818 |
|
|
4,623 |
|
|
21,201 |
|
|
15,053 |
|
Interest
expense |
|
694 |
|
|
565 |
|
|
1,799 |
|
|
835 |
|
Total Expense |
|
25,849 |
|
|
22,989 |
|
|
109,089 |
|
|
87,892 |
|
Net
Income |
|
31,978 |
|
|
35,796 |
|
|
130,122 |
|
|
115,531 |
|
Less: Net income
attributable to noncontrolling interest |
|
7,130 |
|
|
13,330 |
|
|
33,636 |
|
|
44,284 |
|
Net Income
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP |
|
$ |
24,848 |
|
|
$ |
22,466 |
|
|
$ |
96,486 |
|
|
$ |
71,247 |
|
|
|
|
|
|
|
|
|
|
Calculation of
Limited Partner Interest in Net Income: |
|
|
|
|
|
|
|
|
Net Income Attributable
to General and Limited Partner Ownership Interest in CONE Midstream
Partners LP |
|
$ |
24,848 |
|
|
$ |
22,466 |
|
|
$ |
96,486 |
|
|
$ |
71,247 |
|
Less: General partner
interest in net income, including incentive distribution
rights |
|
1,093 |
|
|
449 |
|
|
2,526 |
|
|
1,425 |
|
Limited partner
interest in net income |
|
$ |
23,755 |
|
|
$ |
22,017 |
|
|
$ |
93,960 |
|
|
$ |
69,822 |
|
|
|
|
|
|
|
|
|
|
Net income per limited
partner unit - Basic |
|
$ |
0.38 |
|
|
$ |
0.38 |
|
|
$ |
1.59 |
|
|
$ |
1.20 |
|
Net Income per limited
partner unit - Diluted |
|
$ |
0.38 |
|
|
$ |
0.38 |
|
|
$ |
1.58 |
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
Limited partner unit
outstanding - Basic |
|
61,799 |
|
|
58,326 |
|
|
59,207 |
|
|
58,326 |
|
Limited partner unit
outstanding - Diluted |
|
61,911 |
|
|
58,337 |
|
|
59,289 |
|
|
58,340 |
|
CONE MIDSTREAM PARTNERS LP |
CONSOLIDATED BALANCE SHEETS |
(in thousands, except number of
units) |
|
|
|
(Unaudited) |
|
|
|
|
December 31, 2016 |
|
December 31, 2015 |
ASSETS |
|
|
|
|
Current Assets: |
|
|
|
|
Cash |
|
$ |
6,421 |
|
|
$ |
217 |
|
Receivables — related party |
|
22,434 |
|
|
36,418 |
|
Inventory |
|
— |
|
|
18,916 |
|
Other
current assets |
|
2,181 |
|
|
2,037 |
|
Total Current Assets |
|
31,036 |
|
|
57,588 |
|
Property and
Equipment: |
|
|
|
|
Property
and equipment |
|
930,732 |
|
|
897,918 |
|
Less —
accumulated depreciation |
|
52,172 |
|
|
31,609 |
|
Property and Equipment — Net |
|
878,560 |
|
|
866,309 |
|
Other assets |
|
8,961 |
|
|
528 |
|
TOTAL ASSETS |
|
$ |
918,557 |
|
|
$ |
924,425 |
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
Current
Liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
18,007 |
|
|
$ |
46,155 |
|
Accounts
payable — related party |
|
8,289 |
|
|
1,628 |
|
Total Current Liabilities |
|
26,296 |
|
|
47,783 |
|
Other Liabilities: |
|
|
|
|
Revolving
credit facility |
|
167,000 |
|
|
73,500 |
|
Total Liabilities |
|
193,296 |
|
|
121,283 |
|
Partners' Capital: |
|
|
|
|
Common
units - (34,363,371 units issued and outstanding at December 31,
2016 and 29,163,121 units issued and outstanding at December 31,
2015) |
|
418,352 |
|
|
399,399 |
|
Subordinated units (29,163,121 units issued and outstanding at
December 31, 2016 and 2015) |
|
(65,986 |
) |
|
(82,900 |
) |
General
partner interest |
|
(2,311 |
) |
|
(3,389 |
) |
Partners'
capital attributable to CONE Midstream Partners LP |
|
350,055 |
|
|
313,110 |
|
Noncontrolling interest |
|
375,206 |
|
|
490,032 |
|
Total Partners' Capital |
|
725,261 |
|
|
803,142 |
|
TOTAL LIABILITIES AND PARTNERS' CAPITAL |
|
$ |
918,557 |
|
|
$ |
924,425 |
|
CONE MIDSTREAM PARTNERS LP |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(in thousands) |
|
|
Year Ended December 31, |
|
2016 |
|
2015 |
|
(Unaudited) |
|
|
Cash Flows from
Operating Activities: |
|
|
|
Net
Income |
$ |
130,122 |
|
|
$ |
115,531 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation expense and amortization of debt issuance costs |
21,364 |
|
|
15,217 |
|
Unit-based compensation |
775 |
|
|
402 |
|
Pipe
revaluation |
10,083 |
|
|
— |
|
Other |
695 |
|
|
— |
|
Changes
in assets and liabilities: |
|
|
|
Receivables — related party |
7,265 |
|
|
(3,148 |
) |
Other
current and non-current assets |
(144 |
) |
|
(673 |
) |
Accounts
payable |
(16,691 |
) |
|
(10,954 |
) |
Accounts
payable - related party |
6,620 |
|
|
(358 |
) |
Net Cash Provided by Operating Activities |
160,089 |
|
|
116,017 |
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
Capital
expenditures |
(50,660 |
) |
|
(291,211 |
) |
Proceeds
from sale of assets |
5,332 |
|
|
— |
|
Net Cash Used in Investing Activities |
(45,328 |
) |
|
(291,211 |
) |
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
Partner
and noncontrolling interest holder activity |
(2,344 |
) |
|
182,053 |
|
Quarterly
distribution to unitholders |
(59,690 |
) |
|
(52,094 |
) |
Net
proceeds on revolving credit facility |
93,500 |
|
|
42,200 |
|
Vested
units withheld for unitholder taxes |
(23 |
) |
|
— |
|
Acquisition of remaining 25.0% noncontrolling interest in the
Anchor Systems |
(140,000 |
) |
|
— |
|
Net Cash (Used In) Provided by Financing
Activities |
(108,557 |
) |
|
172,159 |
|
|
|
|
|
Net Increase
(Decrease) in Cash |
6,204 |
|
|
(3,035 |
) |
Cash at
Beginning of Period |
217 |
|
|
3,252 |
|
Cash at End of
Period |
$ |
6,421 |
|
|
$ |
217 |
|
CONE MIDSTREAM PARTNERS LP |
SUPPLEMENTAL STATEMENTS OF CASH
FLOWS |
(in thousands) |
(unaudited) |
|
|
Three Months Ended December 31, |
|
2016 |
|
2015 |
Cash Flows from
Operating Activities: |
|
|
|
Net
income |
$ |
31,978 |
|
|
$ |
35,796 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation expense and amortization of debt issuance costs |
5,857 |
|
|
4,664 |
|
Unit-based compensation |
198 |
|
|
92 |
|
Other |
115 |
|
|
— |
|
Changes
in assets and liabilities: |
|
|
|
Receivables — related party |
(2,146 |
) |
|
(2,046 |
) |
Other
current and non-current assets |
(750 |
) |
|
(1,133 |
) |
Accounts
payable |
(4,728 |
) |
|
(15,482 |
) |
Accounts
payable — related party |
6,627 |
|
|
(5,142 |
) |
Net Cash Provided by Operating Activities |
37,151 |
|
|
16,749 |
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
Capital
expenditures |
(10,194 |
) |
|
(58,261 |
) |
Proceeds
from sale of assets |
5,095 |
|
|
— |
|
Net Cash Used in Investing Activities |
(5,099 |
) |
|
(58,261 |
) |
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
Partners
and noncontrolling interest holders activity |
— |
|
|
37,093 |
|
Quarterly
distribution to unitholders |
(15,827 |
) |
|
(13,569 |
) |
Net
proceeds on revolver credit facility |
126,000 |
|
|
17,000 |
|
Acquisition of remaining 25.0% noncontrolling interest in the
Anchor Systems |
(140,000 |
) |
|
— |
|
Net Cash (Used In) Provided By Financing
Activities |
(29,827 |
) |
|
40,524 |
|
|
|
|
|
Net Increase
(Decrease) in Cash |
2,225 |
|
|
(988 |
) |
Cash at
Beginning of Period |
4,196 |
|
|
1,205 |
|
Cash at End of
Period |
$ |
6,421 |
|
|
$ |
217 |
|
|
CONE MIDSTREAM PARTNERS
LPRECONCILIATION OF NET INCOME TO EBITDA AND
DISTRIBUTABLE CASH FLOW(in
thousands)(unaudited)
Definition of Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
We define EBITDA as net income (loss) before net interest
expense, depreciation and amortization, and Adjusted EBITDA as
EBITDA adjusted for non-cash items which should not be included in
the calculation of distributable cash flow. EBITDA and Adjusted
EBITDA are used as supplemental financial measures by management
and by external users of our financial statements, such as
investors, industry analysts, lenders and ratings agencies, to
assess:
- our operating performance as compared to those of other
companies in the midstream energy industry, without regard to
financing methods, historical cost basis or capital structure;
- the ability of our assets to generate sufficient cash flow to
make distributions to our partners;
- our ability to incur and service debt and fund capital
expenditures; and
- the viability of acquisitions and other capital expenditure
projects and the returns on investment of various investment
opportunities.
We believe that the presentation of EBITDA and Adjusted EBITDA
provides information that is useful to investors in assessing our
financial condition and results of operations. The GAAP measures
most directly comparable to EBITDA and Adjusted EBITDA are net
income and net cash provided by operating activities. EBITDA and
Adjusted EBITDA should not be considered an alternative to net
income, net cash provided by operating activities or any other
measure of financial performance or liquidity presented in
accordance with GAAP. EBITDA and Adjusted EBITDA exclude
some, but not all, items that affect net income or net cash, and
these measures may vary from those of other companies. As a result,
EBITDA and Adjusted EBITDA as presented herein may not be
comparable to similarly titled measures of other companies.
Distributable Cash Flow
We define distributable cash flow as Adjusted EBITDA less net
income attributable to noncontrolling interest, net cash interest
paid and maintenance capital expenditures. Distributable cash flow
does not reflect changes in working capital balances.
Distributable cash flow is used as a supplemental financial
measure by management and by external users of our financial
statements, such as investors, industry analysts, lenders and
ratings agencies, to assess:
- the ability of our assets to generate cash sufficient to
support our indebtedness and make future cash distributions to our
unitholders; and
- the attractiveness of capital projects and acquisitions and the
overall rates of return on alternative investment
opportunities.
We believe that the presentation of distributable cash flow in
this release provides information useful to investors in assessing
our financial condition and results of operations. The GAAP
measures most directly comparable to distributable cash flow are
net income and net cash provided by operating activities.
Distributable cash flow should not be considered an alternative to
net income, net cash provided by operating activities or any other
measure of financial performance or liquidity presented in
accordance with GAAP. Distributable cash flow excludes some,
but not all, items that affect net income or net cash, and these
measures may vary from those of other companies. As a result, our
distributable cash flow may not be comparable to similarly titled
measures of other companies.
CONE MIDSTREAM PARTNERS
LPRECONCILIATION OF NET INCOME AND NET CASH
PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED EBITDA AND
DISTRIBUTABLE CASH FLOW(in
thousands)(unaudited)
The following table presents a reconciliation of the non-GAAP
measures Adjusted EBITDA and distributable cash flow with the most
directly comparable GAAP financial measures of net income and net
cash provided by operating activities.
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net Income |
|
$ |
31,978 |
|
|
$ |
35,796 |
|
|
$ |
130,122 |
|
|
$ |
115,531 |
|
Depreciation expense |
|
5,818 |
|
|
4,623 |
|
|
21,201 |
|
|
15,053 |
|
Interest
expense |
|
694 |
|
|
565 |
|
|
1,799 |
|
|
835 |
|
EBITDA |
|
38,490 |
|
|
40,984 |
|
|
153,122 |
|
|
131,419 |
|
Non-cash
unit-based compensation |
|
198 |
|
|
92 |
|
|
775 |
|
|
402 |
|
Pipe
revaluation |
|
— |
|
|
— |
|
|
10,083 |
|
|
— |
|
Adjusted EBITDA |
|
38,688 |
|
|
41,076 |
|
|
163,980 |
|
|
131,821 |
|
Less: |
|
|
|
|
|
|
|
|
Net
income attributable to noncontrolling interest |
|
7,130 |
|
|
13,330 |
|
|
33,636 |
|
|
44,284 |
|
Depreciation expense attributable to noncontrolling interest |
|
2,313 |
|
|
2,246 |
|
|
9,597 |
|
|
6,799 |
|
Other
expenses attributable to noncontrolling interest |
|
100 |
|
|
331 |
|
|
621 |
|
|
428 |
|
Pipe
revaluation attributable to noncontrolling interest |
|
— |
|
|
— |
|
|
9,579 |
|
|
— |
|
Adjusted EBITDA
attributable to general and limited partner ownership interest in
CONE Midstream Partners LP |
|
$ |
29,145 |
|
|
$ |
25,169 |
|
|
$ |
110,547 |
|
|
$ |
80,310 |
|
Less: cash interest
paid, net |
|
628 |
|
|
234 |
|
|
1,310 |
|
|
407 |
|
Less: ongoing
maintenance capital expenditures, net of expected
reimbursements |
|
3,837 |
|
|
2,554 |
|
|
13,071 |
|
|
8,984 |
|
Distributable Cash
Flow |
|
$ |
24,680 |
|
|
$ |
22,381 |
|
|
$ |
96,166 |
|
|
$ |
70,919 |
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities |
|
$ |
37,151 |
|
|
$ |
16,749 |
|
|
$ |
160,089 |
|
|
$ |
116,017 |
|
Interest
expense |
|
694 |
|
|
565 |
|
|
1,799 |
|
|
835 |
|
Pipe
revaluation |
|
— |
|
|
— |
|
|
10,083 |
|
|
— |
|
Other,
including changes in working capital |
|
843 |
|
|
23,762 |
|
|
(7,991 |
) |
|
14,969 |
|
Adjusted EBITDA |
|
38,688 |
|
|
41,076 |
|
|
163,980 |
|
|
131,821 |
|
Less: |
|
|
|
|
|
|
|
|
Net
income attributable to noncontrolling interest |
|
7,130 |
|
|
13,330 |
|
|
33,636 |
|
|
44,284 |
|
Depreciation expense attributable to noncontrolling interest |
|
2,313 |
|
|
2,246 |
|
|
9,597 |
|
|
6,799 |
|
Other
expenses attributable to noncontrolling interest |
|
100 |
|
|
331 |
|
|
621 |
|
|
428 |
|
Pipe
revaluation attributable to noncontrolling interest |
|
— |
|
|
— |
|
|
9,579 |
|
|
— |
|
Adjusted EBITDA
attributable to general and limited partner ownership interest in
CONE Midstream Partners LP |
|
$ |
29,145 |
|
|
$ |
25,169 |
|
|
$ |
110,547 |
|
|
$ |
80,310 |
|
Less:
cash interest paid, net |
|
628 |
|
|
234 |
|
|
1,310 |
|
|
407 |
|
Less:
ongoing maintenance capital expenditures, net of expected
reimbursements |
|
3,837 |
|
|
2,554 |
|
|
13,071 |
|
|
8,984 |
|
Distributable Cash
Flow |
|
$ |
24,680 |
|
|
$ |
22,381 |
|
|
$ |
96,166 |
|
|
$ |
70,919 |
|
The following table presents a reconciliation of the non-GAAP
measures Adjusted EBITDA and distributable cash flow by quarter and
for the most recently completed twelve month period with the most
directly comparable GAAP financial measures, which are net income
and net cash provided by operating activities.
(unaudited) |
Q1 2016 |
|
Q2 2016 |
|
Q3 2016 |
|
Q4 2016 |
|
TwelveMonths Ended December 31,
2016 |
Net Income |
$ |
37,295 |
|
|
$ |
24,468 |
|
|
$ |
36,381 |
|
|
$ |
31,978 |
|
|
$ |
130,122 |
|
Depreciation expense |
4,839 |
|
|
5,152 |
|
|
5,392 |
|
|
5,818 |
|
|
21,201 |
|
Interest
expense |
419 |
|
|
381 |
|
|
305 |
|
|
694 |
|
|
1,799 |
|
EBITDA |
42,553 |
|
|
30,001 |
|
|
42,078 |
|
|
38,490 |
|
|
153,122 |
|
Non-cash
unit-based compensation expense |
136 |
|
|
219 |
|
|
222 |
|
|
198 |
|
|
775 |
|
Pipe
revaluation |
— |
|
|
10,083 |
|
|
— |
|
|
— |
|
|
10,083 |
|
Adjusted EBITDA |
42,689 |
|
|
40,303 |
|
|
42,300 |
|
|
38,688 |
|
|
163,980 |
|
Less: |
|
|
|
|
|
|
|
|
|
Net
income attributable to noncontrolling interest |
12,505 |
|
|
1,251 |
|
|
12,750 |
|
|
7,130 |
|
|
33,636 |
|
Depreciation expenses attributable to noncontrolling interest |
2,286 |
|
|
2,409 |
|
|
2,589 |
|
|
2,313 |
|
|
9,597 |
|
Other
expenses attributable to noncontrolling interest |
189 |
|
|
127 |
|
|
205 |
|
|
100 |
|
|
621 |
|
Pipe
revaluation attributable to noncontrolling interest |
— |
|
|
9,579 |
|
|
— |
|
|
— |
|
|
9,579 |
|
Adjusted EBITDA
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP |
$ |
27,709 |
|
|
$ |
26,937 |
|
|
$ |
26,756 |
|
|
$ |
29,145 |
|
|
$ |
110,547 |
|
Less:
cash interest paid, net |
230 |
|
|
254 |
|
|
198 |
|
|
628 |
|
|
1,310 |
|
Less: ongoing maintenance capital expenditures, net of
expected reimbursements |
2,839 |
|
|
3,112 |
|
|
3,283 |
|
|
3,837 |
|
|
13,071 |
|
Distributable Cash
Flow |
$ |
24,640 |
|
|
$ |
23,571 |
|
|
$ |
23,275 |
|
|
$ |
24,680 |
|
|
$ |
96,166 |
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities |
$ |
41,180 |
|
|
$ |
41,777 |
|
|
$ |
39,981 |
|
|
$ |
37,151 |
|
|
$ |
160,089 |
|
Interest
expense |
419 |
|
|
381 |
|
|
305 |
|
|
694 |
|
|
1,799 |
|
Pipe
revaluation |
— |
|
|
10,083 |
|
|
— |
|
|
— |
|
|
10,083 |
|
Other,
including changes in working capital |
1,090 |
|
|
(11,938 |
) |
|
2,014 |
|
|
843 |
|
|
(7,991 |
) |
Adjusted EBITDA |
42,689 |
|
|
40,303 |
|
|
42,300 |
|
|
38,688 |
|
|
163,980 |
|
Less: |
|
|
|
|
|
|
|
|
|
Net
income attributable to noncontrolling interest |
12,505 |
|
|
1,251 |
|
|
12,750 |
|
|
7,130 |
|
|
33,636 |
|
Depreciation expense attributable to noncontrolling interest |
2,286 |
|
|
2,409 |
|
|
2,589 |
|
|
2,313 |
|
|
9,597 |
|
Other
expenses attributable to noncontrolling interest |
189 |
|
|
127 |
|
|
205 |
|
|
100 |
|
|
621 |
|
Pipe
revaluation attributable to noncontrolling interest |
— |
|
|
9,579 |
|
|
— |
|
|
— |
|
|
9,579 |
|
Adjusted EBITDA
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP |
$ |
27,709 |
|
|
$ |
26,937 |
|
|
$ |
26,756 |
|
|
$ |
29,145 |
|
|
$ |
110,547 |
|
Less:
cash interest paid, net |
230 |
|
|
254 |
|
|
198 |
|
|
628 |
|
|
1,310 |
|
Less: ongoing maintenance capital expenditures, net of
expected reimbursements |
2,839 |
|
|
3,112 |
|
|
3,283 |
|
|
3,837 |
|
|
13,071 |
|
Distributable Cash
Flow |
$ |
24,640 |
|
|
$ |
23,571 |
|
|
$ |
23,275 |
|
|
$ |
24,680 |
|
|
$ |
96,166 |
|
Distributions Declared |
$ |
14,591 |
|
|
$ |
15,209 |
|
|
$ |
15,827 |
|
|
$ |
18,004 |
|
|
$ |
63,631 |
|
Distribution Coverage Ratio - Declared |
1.69 |
x |
|
1.55 |
x |
|
1.47 |
x |
|
1.37 |
x |
|
1.51 |
x |
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow |
$ |
24,640 |
|
|
$ |
23,571 |
|
|
$ |
23,275 |
|
|
$ |
24,680 |
|
|
$ |
96,166 |
|
Distributions Paid |
$ |
14,062 |
|
|
$ |
14,591 |
|
|
$ |
15,209 |
|
|
$ |
15,827 |
|
|
$ |
59,689 |
|
Distribution Coverage Ratio - Paid |
1.75 |
x |
|
1.62 |
x |
|
1.53 |
x |
|
1.56 |
x |
|
1.61 |
x |
Development Companies Jointly Owned by CONE
Gathering LLC and CONE Midstream Partners LP |
Operating Income Summary, Selected Operating
Statistics and Capital Investment |
(in thousands) |
(unaudited) |
|
|
Three Months Ended December 31,
2016 |
|
Development Company |
|
Anchor |
|
Growth |
|
Additional |
|
TOTAL |
Income Summary |
|
|
|
|
|
|
|
Revenue |
$ |
48,728 |
|
|
$ |
2,173 |
|
|
$ |
6,926 |
|
|
$ |
57,827 |
|
Expenses |
20,013 |
|
|
1,593 |
|
|
4,243 |
|
|
25,849 |
|
Net
Income |
28,715 |
|
|
580 |
|
|
2,683 |
|
|
31,978 |
|
Less: Net income
attributable to noncontrolling interest |
4,030 |
|
|
551 |
|
|
2,549 |
|
|
7,130 |
|
Net Income
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP |
$ |
24,685 |
|
|
$ |
29 |
|
|
$ |
134 |
|
|
$ |
24,848 |
|
|
|
|
|
|
|
|
|
Operating Statistics -
Gathered Volumes |
|
|
|
|
|
|
|
Dry gas
(BBtu/d) |
665 |
|
|
59 |
|
|
26 |
|
|
750 |
|
Wet gas
(BBtu/d) |
387 |
|
|
5 |
|
|
155 |
|
|
547 |
|
Condensate (Bcfe/d) |
4 |
|
|
— |
|
|
4 |
|
|
8 |
|
Total Gathered
Volumes |
1,056 |
|
|
64 |
|
|
185 |
|
|
1,305 |
|
|
|
|
|
|
|
|
|
Total Volumes
Net to CONE Midstream Partners LP |
921 |
|
|
3 |
|
|
9 |
|
|
933 |
|
|
|
|
|
|
|
|
|
Capital Investment |
|
|
|
|
|
|
|
Maintenance capital |
$ |
4,328 |
|
|
$ |
271 |
|
|
$ |
715 |
|
|
$ |
5,314 |
|
Expansion
capital |
5,696 |
|
|
125 |
|
|
(941 |
) |
|
4,880 |
|
Total Capital
Investment |
$ |
10,024 |
|
|
$ |
396 |
|
|
$ |
(226 |
) |
|
$ |
10,194 |
|
|
|
|
|
|
|
|
|
Capital Investment Net
to CONE Midstream Partners LP |
|
|
|
|
|
|
|
Maintenance capital |
$ |
3,787 |
|
|
$ |
14 |
|
|
$ |
36 |
|
|
$ |
3,837 |
|
Expansion
capital |
4,803 |
|
|
6 |
|
|
(47 |
) |
|
4,762 |
|
Total Capital
Investment Net to CONE Midstream Partners LP |
$ |
8,590 |
|
|
$ |
20 |
|
|
$ |
(11 |
) |
|
$ |
8,599 |
|
Development Companies Jointly Owned by CONE
Gathering LLC and CONE Midstream Partners LP |
Operating Income Summary, Selected Operating
Statistics and Capital Investment |
(in thousands) |
(unaudited) |
|
|
Three Months Ended December 31,
2015 |
|
Development Company |
|
Anchor |
|
Growth |
|
Additional |
|
TOTAL |
Income Summary |
|
|
|
|
|
|
|
Revenue |
$ |
46,063 |
|
|
$ |
3,080 |
|
|
$ |
9,642 |
|
|
$ |
58,785 |
|
Expenses |
16,525 |
|
|
1,546 |
|
|
4,918 |
|
|
22,989 |
|
Net
Income |
29,538 |
|
|
1,534 |
|
|
4,724 |
|
|
35,796 |
|
Less: Net income
attributable to noncontrolling interest |
7,385 |
|
|
1,457 |
|
|
4,488 |
|
|
13,330 |
|
Net Income
Attributable to General and Limited Partner Ownership Interest in
CONE Midstream Partners LP |
$ |
22,153 |
|
|
$ |
77 |
|
|
$ |
236 |
|
|
$ |
22,466 |
|
|
|
|
|
|
|
|
|
Operating Statistics -
Gathered Volumes |
|
|
|
|
|
|
|
Dry gas
(BBtu/d) |
614 |
|
|
73 |
|
|
11 |
|
|
698 |
|
Wet gas
(BBtu/d) |
372 |
|
|
8 |
|
|
196 |
|
|
576 |
|
Condensate (Bcfe/d) |
7 |
|
|
— |
|
|
10 |
|
|
17 |
|
Total Gathered
Volumes |
993 |
|
|
81 |
|
|
217 |
|
|
1,291 |
|
|
|
|
|
|
|
|
|
Total Volumes
Net to CONE Midstream Partners LP |
745 |
|
|
4 |
|
|
11 |
|
|
760 |
|
|
|
|
|
|
|
|
|
Capital Investment |
|
|
|
|
|
|
|
Maintenance capital |
$ |
3,333 |
|
|
$ |
352 |
|
|
$ |
725 |
|
|
$ |
4,410 |
|
Expansion
capital |
29,034 |
|
|
188 |
|
|
24,629 |
|
|
53,851 |
|
Total Capital
Investment |
$ |
32,367 |
|
|
$ |
540 |
|
|
$ |
25,354 |
|
|
$ |
58,261 |
|
|
|
|
|
|
|
|
|
Capital Investment Net
to CONE Midstream Partners LP |
|
|
|
|
|
|
|
Maintenance capital |
$ |
2,500 |
|
|
$ |
18 |
|
|
$ |
36 |
|
|
$ |
2,554 |
|
Expansion
capital |
21,776 |
|
|
9 |
|
|
1,231 |
|
|
23,016 |
|
Total Capital
Investment Net to CONE Midstream Partners LP |
$ |
24,276 |
|
|
$ |
27 |
|
|
$ |
1,267 |
|
|
$ |
25,570 |
|
Contact: Stephen R. Milbourne
CONE Investor Relations
Phone: 724-485-4408
Email: smilbourne@conemidstream.com
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