DENVER, April 27, 2016 /PRNewswire/ -- Antero
Midstream Partners LP (NYSE: AM) ("Antero Midstream" or the
"Partnership") today released its first quarter 2016 financial
results and announced increased guidance. The relevant
condensed combined consolidated financial statements are included
in Antero Midstream's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2016, which
has been filed with the Securities and Exchange Commission.
Highlights for the First Quarter of 2016:
- Adjusted EBITDA of $80 million, a
32% increase compared to the prior year quarter
- Distributable cash flow of $69
million resulting in DCF coverage of 1.6x
- Increased 2016 adjusted EBITDA guidance by $25 million to a range of $325 - $350 million
- Increased 2016 distributable cash flow guidance by $25 million to a range of $275 - $300 million
- Increased year over year distribution growth guidance in 2016
to 30% while maintaining DCF coverage in excess of the
Partnership's 1.1x to 1.2x target
- Declared a cash distribution of $0.235 per unit for the first quarter of 2016, a
31% increase compared to the prior year quarter and a 7% increase
sequentially
Recent Developments
Increased 2016 Guidance
Antero Midstream is forecasting 2016 adjusted EBITDA of
$325 million to $350 million, which
represents a $25 million increase as
compared to the previous 2016 adjusted EBITDA guidance. The
Partnership is forecasting distributable cash flow of $275 million to $300 million, a $25 million increase compared to the previous
2016 distributable cash flow guidance. Driven by the increase in
adjusted EBITDA and distributable cash flow guidance, the
Partnership expects year over year distribution growth in 2016 of
30%, at the top end of the Partnership's previous distribution
growth guidance range, while still maintaining DCF coverage in
excess of the Partnership's 1.1x to 1.2x target.
|
|
Full Year
2016
|
|
|
|
|
Updated
Guidance
|
|
Prior
Guidance
|
|
Increase
|
Adjusted EBITDA
($MM)
|
|
$325 –
$350
|
|
$300 –
$325
|
|
$25
|
Distributable Cash
Flow ($MM)
|
|
$275 –
$300
|
|
$250 –
$275
|
|
$25
|
Year over Year
Distribution Growth
|
|
30%
|
|
28% – 30%
|
|
0% –
2%
|
DCF Coverage
Ratio
|
|
>1.1x –
1.2x
|
|
>1.1x –
1.2x
|
|
–
|
Commenting on increased guidance, Paul
Rady, Chairman of the Board and CEO said, "The increase in
adjusted EBITDA guidance is primarily driven by an increase in
expected fresh water delivery volumes, as Antero Resources plans to
utilize approximately 25% higher water volumes in its completions
in 2016 compared to 2015 completion designs. Early well
results from the new completion designs are encouraging.
Higher EURs and production per well would also benefit Antero
Midstream's gathering and compression business. The increased
volumetric throughput further highlights the benefit of being a
full cycle value chain midstream provider."
Commenting on first quarter results and the outlook for the
remainder of 2016, Michael Kennedy,
Chief Financial Officer of Antero Midstream said, "Antero
Midstream's strong first quarter puts us on track to deliver 30%
year over year distribution growth in 2016, while continuing to
maintain significant excess DCF coverage. Looking ahead to the
second quarter, we expect cash flows to be relatively in line with
the first quarter results as an increase in gathering and
compression volumes from recently completed wells is offset by a
modest decline in fresh water delivery volumes as a result of
reduced completion activity by Antero Resources. In the second half
of 2016, Antero Resources plans to reaccelerate completion
activities similar to its completion and production profile in
2015. The acceleration in completion activity in the second half of
2016 is expected to drive an increase in fresh water delivery
volumes, gathering volumes and cash flow."
Distribution for the First Quarter of 2016
The Board of Directors of Antero Resources Midstream Management
LLC, the general partner of the Partnership, declared a cash
distribution of $0.235 per unit
($0.94 per unit annualized) for the
first quarter of 2016. The distribution represents a 31% increase
compared to the prior year quarter and a 7% increase
sequentially. The distribution represents the Partnership's
fifth consecutive quarterly distribution increase since its initial
public offering in November 2014. The
distribution will be payable on May 25,
2016 to unitholders of record as of May 11, 2016.
First Quarter 2016 Financial Results
Antero Midstream's acquisition of Antero Resources'
integrated water business was accounted for as a transfer of
entities under common control. As a result, the Partnership
recast its 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 first quarter 2016 and first
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 and
distributable cash flow, please read "Non-GAAP Financial
Measures
Low pressure gathering volumes for the first quarter of 2016
averaged 1,303 MMcf/d, a 39% increase from the first quarter of
2015 and a 16% increase sequentially. High pressure gathering
volumes for the first quarter of 2016 averaged 1,222 MMcf/d, an 8%
increase from the first quarter of 2015 and a 2% increase
sequentially. Compression volumes for the first quarter of
2016 averaged 606 MMcf/d, a 69% increase from the first quarter of
2015 and a 27% increase sequentially. Year over year
volumetric throughput growth was driven by production growth from
Antero Resources. Condensate gathering volumes averaged 2,965
Bbl/d during the quarter, a 23% increase from the first quarter of
2015 and 25% decrease sequentially. The sequential decrease was
driven by Antero Resources shifting Ohio Utica Shale development
from its Highly-Rich Gas / Condensate area to estimated higher rate
of return locations in the Highly-Rich Gas area. Fresh water
delivery volumes averaged 97,331 Bbl/d during the first quarter of
2016, a 7% decrease from the first quarter of 2015 and 19% decrease
sequentially. The year over year and sequential decrease in fresh
water delivery volumes was driven by reduced completion activity by
Antero Resources.
|
|
Three Months
Ended
March
31,
|
|
|
Average Daily
Throughput:
|
|
2015
|
|
2016
|
|
%
Change
|
Low Pressure Gathering
(MMcf/d)
|
|
935
|
|
1,303
|
|
39%
|
High Pressure
Gathering (MMcf/d)
|
|
1,134
|
|
1,222
|
|
8%
|
Compression
(MMcf/d)
|
|
358
|
|
606
|
|
69%
|
Condensate Gathering
(Bbl/d)
|
|
2,407
|
|
2,965
|
|
23%
|
|
|
|
|
|
|
|
Average Daily
Volumes:
|
|
|
|
|
|
|
Fresh Water Delivery
(Bbl/d)
|
|
104,781
|
|
97,331
|
|
(7)%
|
For the three months ended March 31,
2016, the Partnership reported revenues of $136 million, comprised of $69 million in revenues from the Gathering and
Compression segment and $67 million
in revenues from the Water Handling and Treatment segment. Revenues
increased 58% compared to the prior year quarter, primarily driven
by the startup of produced water handling and high rate transfer
services in the fourth quarter of 2015. Water Handling and
Treatment segment revenues include $34
million from produced water handling and high rate water
transfer services Antero Midstream provides 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 $41
million, respectively, for a total of $49 million in direct operating expenses. Water
Handling and Treatment direct operating expenses include
$33 million from produced water
handling and high rate water transfer services. Direct operating
expenses increased 155% 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 first quarter of 2016. General and
administrative expenses increased $1
million, or 16%, as compared to the first quarter of 2015.
Total cash and non-cash operating expenses increased by 72% year
over year totaling $89 million,
including $24 million of
depreciation.
Adjusted EBITDA for the first quarter of 2016 was $80 million, a 32% increase compared to the prior
year quarter due to increased gathering and compression volumes and
associated revenue. Cash interest expense and cash reserved
for payment of income tax withholding upon vesting of Antero
Midstream equity-based compensation awards were $3 million and $1
million, respectively. Maintenance capital expenditures
during the quarter totaled $6 million
and distributable cash flow was $69
million, resulting in a DCF coverage ratio of 1.6x.
Reconciliation of
Net Income to Adjusted EBITDA and DCF (Dollars in
thousands):
|
Three months
ended
|
March
31,
|
|
2015
|
|
2016
|
Net income
|
$
|
32,327
|
|
$
|
42,918
|
|
Add:
|
|
|
|
|
|
|
Interest expense
|
|
1,586
|
|
|
3,461
|
|
Depreciation expense
|
|
20,702
|
|
|
23,823
|
|
Contingent acquisition consideration accretion
|
|
—
|
|
|
3,396
|
|
Equity-based compensation
|
|
5,779
|
|
|
5,972
|
|
Adjusted
EBITDA
|
$
|
60,394
|
|
$
|
79,570
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
Pre-water acquisition net income attributed to parent
|
|
(16,679)
|
|
|
—
|
|
Pre-water acquisition depreciation expense attributed to
parent
|
|
(6,120)
|
|
|
—
|
|
Pre-water acquisition equity-based compensation expense attributed
to parent
|
|
(1,156)
|
|
|
—
|
|
Pre-water acquisition interest expense attributed to
parent
|
|
(763)
|
|
|
—
|
Adjusted EBITDA
attributable to the Partnership
|
$
|
35,676
|
|
$
|
79,570
|
Less:
|
|
|
|
|
|
Cash interest paid -
attributable to Partnership
|
|
(579)
|
|
|
(3,444)
|
Cash reserved for
payment of income tax withholding upon vesting of Antero
Midstream equity-based compensation
awards(1)
|
|
—
|
|
|
(1,000)
|
Maintenance capital
expenditures
|
|
(2,408)
|
|
|
(5,808)
|
Distributable cash
flow
|
$
|
32,689
|
|
$
|
69,318
|
|
|
|
|
|
|
Total
distributions declared
|
$
|
27,338
|
|
$
|
43,252
|
|
|
|
|
|
|
DCF coverage
ratio
|
|
1.2x
|
|
|
1.6x
|
|
|
|
|
|
|
|
|
|
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.
|
Balance Sheet and Liquidity
As of March 31, 2016, Antero
Midstream had $14 million of cash on
its balance sheet and $680 million
drawn on its $1.5 billion bank credit
facility, resulting in $834 million
in available liquidity. Antero Midstream expects to fund all
2016 capital expenditures with internally generated operating cash
flow and available borrowing capacity.
Capital Spending
Capital expenditures were $86
million in the first quarter of 2016 as compared to
$107 million in the first quarter of
2015. Capital invested in gathering and compression assets
was $49 million and capital invested
in the fresh water delivery business and the Antero Clearwater
Facility was $37 million.
Conference Call
Antero Midstream will hold a call on Thursday, April 28, 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, May 6,
2016 at 10:00 am MT at
877-870-5176 (U.S.) or 858-384-5517 (International) using the
passcode 10083150.
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, May 6, 2016 at 10:00 am MT.
Presentation
An updated presentation will be posted to the Partnership's
website before the April 28, 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
As used in this news release, adjusted EBITDA means net income
plus interest expense, depreciation expense, contingent acquisition
consideration accretion, income tax expense (if applicable), and
non-cash stock compensation expense. As used in this news
release, distributable cash flow means adjusted EBITDA less cash
interest expense, cash reserved for payment of income tax
withholding upon vesting of Antero Midstream LP equity-based
compensation awards and maintenance capital expenditures.
Distributable cash flow should not be viewed as indicative of the
actual amount of cash that the Partnership has available for
distributions from operating surplus or that the Partnership plans
to distribute. Adjusted EBITDA and distributable cash flow are
non-GAAP supplemental financial measures that management and
external users of the Partnership's consolidated financial
statements, such as industry analysts, investors, lenders and
rating agencies, use to assess:
- the Partnership's operating performance as compared to other
publicly traded partnerships in the midstream energy industry
without regard to historical cost basis or, in the case of adjusted
EBITDA, financing methods;
- the ability of the Partnership's assets to generate sufficient
cash flow to make distributions to the Partnership's
unitholders;
- the Partnership's 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.
The Partnership believes that adjusted EBITDA and distributable
cash flow provide useful information to investors in assessing the
Partnership's financial condition and results of operations.
Adjusted EBITDA and distributable cash flow should not be
considered as alternatives to net income, operating income, net
cash provided by operating activities or any other measure of
financial performance or liquidity presented in accordance with
GAAP. Adjusted EBITDA and distributable cash flow have important
limitations as analytical tools because they exclude some, but not
all, items that affect net income and net cash provided by
operating activities. Additionally, because adjusted EBITDA and
distributable cash flow may be defined differently by other
partnerships in its industry, the partnership's definition of
adjusted EBITDA and distributable cash flow may not be comparable
to similarly titled measures of other partnerships, thereby
diminishing their utility.
The partnership does not provide financial guidance for
projected net income or changes in working capital, and, therefore,
is unable to provide a reconciliation of its adjusted EBITDA and
distributable cash flow guidance to net income, operating income,
or net cash flow provided by operating activities, the most
comparable financial measures calculated in accordance with
GAAP.
Reconciliation of
Adjusted EBITDA to Cash Provided by Operating Activities (Dollars
in thousands):
|
|
|
|
Three months
ended
March
31,
|
|
|
2015
|
|
2016
|
Adjusted
EBITDA
|
|
$
|
60,394
|
|
$
|
79,570
|
|
Add:
|
|
|
|
|
|
|
|
Amortization of
deferred financing costs Interest expense
|
|
|
244
|
|
|
366
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
Interest expense
Interest expense
|
|
|
(1,586)
|
|
|
(3,461)
|
|
Changes in operating
assets and liabilities
|
|
|
11,020
|
|
|
5,873
|
Net cash provided by
operating activities
|
|
$
|
70,072
|
|
$
|
82,348
|
|
|
|
|
|
|
|
|
|
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 March 31, 2016
(Unaudited)
(In thousands, except
unit counts)
|
|
|
|
|
|
|
|
December
31,
|
|
March
31,
|
|
2015
|
|
2016
|
Assets
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
6,883
|
|
$
|
14,478
|
Accounts
receivable–Antero
|
|
65,712
|
|
|
63,445
|
Accounts
receivable–third party
|
|
2,707
|
|
|
1,292
|
Prepaid
expenses
|
|
—
|
|
|
336
|
Total current
assets
|
|
75,302
|
|
|
79,551
|
Property and
equipment
|
|
|
|
|
|
Gathering and
compressions systems
|
|
1,485,835
|
|
|
1,527,205
|
Water handling and
treatment systems
|
|
565,616
|
|
|
582,331
|
Less accumulated
depreciation
|
|
(157,625)
|
|
|
(181,448)
|
Property and
equipment, net
|
|
1,893,826
|
|
|
1,928,088
|
Other assets,
net
|
|
10,904
|
|
|
19,807
|
Total
assets
|
$
|
1,980,032
|
|
$
|
2,027,446
|
Liabilities and
Partners' Capital
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
10,941
|
|
$
|
11,338
|
Accounts
payable–Antero
|
|
2,138
|
|
|
3,736
|
Accrued capital
expenditures
|
|
50,022
|
|
|
22,101
|
Accrued ad valorem
tax
|
|
7,195
|
|
|
8,454
|
Accrued
liabilities
|
|
28,168
|
|
|
27,722
|
Other current
liabilities
|
|
150
|
|
|
156
|
Total current
liabilities
|
|
98,614
|
|
|
73,507
|
Long-term
liabilities
|
|
|
|
|
|
Long-term
debt
|
|
620,000
|
|
|
680,000
|
Contingent acquisition
consideration
|
|
178,049
|
|
|
181,445
|
Other
|
|
624
|
|
|
584
|
Total
liabilities
|
|
897,287
|
|
|
935,536
|
|
|
|
|
|
|
Partners'
capital:
|
|
|
|
|
|
Common unitholders -
public (59,286,451 units and 67,292,931 units issued and
outstanding at December 31, 2015 and March 31, 2016,
respectively)
|
|
1,351,317
|
|
|
1,360,212
|
Common unitholder -
Antero (40,929,378 units and 32,929,378 units issued and
outstanding at December 31, 2015 and March 31, 2016,
respectively)
|
|
30,186
|
|
|
26,611
|
Subordinated unitholder
- Antero (75,940,957 units issued and outstanding at December 31,
2015 and March 31, 2016)
|
|
(299,727)
|
|
|
(296,763)
|
General
partner
|
|
969
|
|
|
1,850
|
Total partners'
capital
|
|
1,082,745
|
|
|
1,091,910
|
Total liabilities and
partners' capital
|
$
|
1,980,032
|
|
$
|
2,027,446
|
ANTERO MIDSTREAM
PARTNERS LP
Condensed Combined
Consolidated Results of Operations
March 31, 2015
and 2016
(Unaudited)
($ in thousands, except average realized fees)
|
|
|
|
|
|
|
|
Amount
of
|
|
|
|
Three months ended
March 31,
|
|
Increase
|
|
Percentage
|
|
2015
|
|
2016
|
|
(Decrease)
|
|
Change
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Revenue -
Antero
|
$
|
85,684
|
|
$
|
135,555
|
|
$
|
49,871
|
|
58
|
%
|
Revenue -
third-party
|
|
151
|
|
|
275
|
|
|
124
|
|
82
|
%
|
Total
revenue
|
|
85,835
|
|
|
135,830
|
|
|
49,995
|
|
58
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
19,301
|
|
|
49,141
|
|
|
29,840
|
|
155
|
%
|
General and
administrative (before equity-based compensation)
|
|
6,140
|
|
|
7,119
|
|
|
979
|
|
16
|
%
|
Equity-based
compensation
|
|
5,779
|
|
|
5,972
|
|
|
193
|
|
3
|
%
|
Depreciation
|
|
20,702
|
|
|
23,823
|
|
|
3,121
|
|
15
|
%
|
Contingent acquisition
consideration accretion
|
|
—
|
|
|
3,396
|
|
|
3,396
|
|
*
|
|
Total operating
expenses
|
|
51,922
|
|
|
89,451
|
|
|
37,529
|
|
72
|
%
|
Operating
income
|
|
33,913
|
|
|
46,379
|
|
|
12,466
|
|
37
|
%
|
Interest
expense
|
|
1,586
|
|
|
3,461
|
|
|
1,875
|
|
118
|
%
|
Net income
|
$
|
32,327
|
|
$
|
42,918
|
|
$
|
10,591
|
|
33
|
%
|
Adjusted
EBITDA
|
$
|
60,394
|
|
$
|
79,570
|
|
$
|
19,176
|
|
32
|
%
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Gathering—low pressure
(MMcf)
|
|
84,168
|
|
|
118,597
|
|
|
34,429
|
|
41
|
%
|
Gathering—high pressure
(MMcf)
|
|
102,080
|
|
|
111,162
|
|
|
9,082
|
|
9
|
%
|
Compression
(MMcf)
|
|
32,201
|
|
|
55,102
|
|
|
22,901
|
|
71
|
%
|
Condensate gathering
(MBbl)
|
|
217
|
|
|
270
|
|
|
53
|
|
24
|
%
|
Fresh water
distribution (MBbl)
|
|
9,430
|
|
|
8,857
|
|
|
(573)
|
|
(6)
|
%
|
Waste water handling
and treatment (MBbl)
|
|
—
|
|
|
2,206
|
|
|
2,206
|
|
*
|
|
Wells serviced by fresh
water distribution
|
|
40
|
|
|
30
|
|
|
(10)
|
|
(25)
|
%
|
Gathering—low pressure
(MMcf/d)
|
|
935
|
|
|
1,303
|
|
|
368
|
|
41
|
%
|
Gathering—high pressure
(MMcf/d)
|
|
1,134
|
|
|
1,222
|
|
|
88
|
|
9
|
%
|
Compression
(MMcf/d)
|
|
358
|
|
|
606
|
|
|
248
|
|
71
|
%
|
Condensate gathering
(MBbl/d)
|
|
2
|
|
|
3
|
|
|
1
|
|
24
|
%
|
Fresh water
distribution (MBbl/d)
|
|
105
|
|
|
97
|
|
|
(8)
|
|
(6)
|
%
|
Waste water handling
and treatment (MBbl/d)
|
|
—
|
|
|
24
|
|
|
24
|
|
*
|
|
Average realized
fees:
|
|
|
|
|
|
|
|
|
|
|
|
Average gathering—low
pressure fee ($/Mcf)
|
$
|
0.31
|
|
$
|
0.31
|
|
$
|
0.00
|
|
2
|
%
|
Average gathering—high
pressure fee ($/Mcf)
|
$
|
0.19
|
|
$
|
0.19
|
|
$
|
0.00
|
|
2
|
%
|
Average compression fee
($/Mcf)
|
$
|
0.19
|
|
$
|
0.19
|
|
$
|
0.00
|
|
2
|
%
|
Average
gathering—condensate fee ($/Bbl)
|
$
|
4.16
|
|
$
|
4.17
|
|
$
|
0.01
|
|
2
|
%
|
Average fresh water
distribution fee - Antero ($/Bbl)
|
$
|
3.64
|
|
$
|
3.67
|
|
$
|
0.03
|
|
1
|
%
|
|
* Not
meaningful or applicable
|
ANTERO MIDSTREAM
PARTNERS LP
Combined Consolidated
Results of Segment Operations
March 31, 2015
and 2016
(Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water
|
|
|
|
|
Gathering and
|
|
Handling and
|
|
Consolidated
|
|
Compression
|
|
Treatment
|
|
Total
|
Three months ended
March 31, 2015
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Revenue -
Antero
|
$
|
52,243
|
|
$
|
33,441
|
|
$
|
85,684
|
Revenue -
third-party
|
|
—
|
|
|
151
|
|
|
151
|
Total
revenues
|
|
52,243
|
|
|
33,592
|
|
|
85,835
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
11,689
|
|
|
7,612
|
|
|
19,301
|
General and
administrative (before equity-based compensation)
|
|
4,878
|
|
|
1,262
|
|
|
6,140
|
Equity-based
compensation
|
|
4,623
|
|
|
1,156
|
|
|
5,779
|
Depreciation
|
|
14,582
|
|
|
6,120
|
|
|
20,702
|
Total
expenses
|
|
35,772
|
|
|
16,150
|
|
|
51,922
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
|
16,471
|
|
$
|
17,442
|
|
$
|
33,913
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,394,349
|
|
$
|
420,481
|
|
$
|
1,814,830
|
Additions to property
and equipment
|
$
|
85,737
|
|
$
|
21,315
|
|
$
|
107,052
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2016
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Revenue -
Antero
|
$
|
69,116
|
|
$
|
66,439
|
|
$
|
135,555
|
Revenue -
third-party
|
|
275
|
|
|
—
|
|
|
275
|
Total
revenues
|
|
69,391
|
|
|
66,439
|
|
|
135,830
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
7,619
|
|
|
41,522
|
|
|
49,141
|
General and
administrative (before equity-based compensation)
|
|
4,949
|
|
|
2,170
|
|
|
7,119
|
Equity-based
compensation
|
|
4,386
|
|
|
1,586
|
|
|
5,972
|
Depreciation
|
|
16,861
|
|
|
6,962
|
|
|
23,823
|
Contingent acquisition
consideration accretion
|
|
-
|
|
|
3,396
|
|
|
3,396
|
Total
expenses
|
|
33,815
|
|
|
55,636
|
|
|
89,451
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
|
35,576
|
|
$
|
10,803
|
|
$
|
46,379
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,503,098
|
|
$
|
524,348
|
|
$
|
2,027,446
|
Additions to property
and equipment
|
$
|
48,686
|
|
$
|
37,036
|
|
$
|
85,722
|
ANTERO MIDSTREAM
PARTNERS LP
Condensed Combined
Consolidated Statements of Cash Flows
Three Months Ended
March 31, 2015, and 2016
(Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2015
|
|
2016
|
|
Cash flows provided
by operating activities:
|
|
|
|
|
|
|
Net income
|
$
|
32,327
|
|
$
|
42,918
|
|
Adjustment to reconcile
net income to net cash provided by operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
20,702
|
|
|
23,823
|
|
Accretion of
contingent acquisition consideration
|
|
—
|
|
|
3,396
|
|
Equity-based
compensation
|
|
5,779
|
|
|
5,972
|
|
Amortization of
deferred financing costs
|
|
244
|
|
|
366
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
Accounts
receivable–Antero
|
|
1,880
|
|
|
2,267
|
|
Accounts
receivable–third party
|
|
4,458
|
|
|
1,415
|
|
Prepaid
expenses
|
|
162
|
|
|
(336)
|
|
Accounts
payable
|
|
577
|
|
|
116
|
|
Accounts
payable–Antero
|
|
641
|
|
|
1,598
|
|
Accrued ad valorem
tax
|
|
—
|
|
|
1,259
|
|
Accrued
liabilities
|
|
3,302
|
|
|
(446)
|
|
Net cash provided by
operating activities
|
|
70,072
|
|
|
82,348
|
|
Cash flows used in
investing activities:
|
|
|
|
|
|
|
Additions to gathering
and compression systems
|
|
(85,737)
|
|
|
(48,686)
|
|
Additions to water
handling and treatment systems
|
|
(21,315)
|
|
|
(37,036)
|
|
Change in other
assets
|
|
(7,515)
|
|
|
(9,270)
|
|
Net cash used in
investing activities
|
|
(114,567)
|
|
|
(94,992)
|
|
Cash flows provided
by (used in) financing activities:
|
|
|
|
|
|
|
Deemed distribution to
Antero, net
|
|
(28,937)
|
|
|
—
|
|
Distributions to
unitholders
|
|
(14,322)
|
|
|
(39,725)
|
|
Borrowings on bank
credit facilities, net
|
|
20,000
|
|
|
60,000
|
|
Payments of deferred
financing costs
|
|
(14)
|
|
|
—
|
|
Other
|
|
(85)
|
|
|
(36)
|
|
Net cash provided by
(used in) financing activities
|
|
(23,358)
|
|
|
20,239
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(67,853)
|
|
|
7,595
|
|
Cash and cash
equivalents, beginning of period
|
|
230,192
|
|
|
6,883
|
|
Cash and cash
equivalents, end of period
|
$
|
162,339
|
|
$
|
14,478
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
Cash paid during the
period for interest
|
$
|
1,393
|
|
$
|
3,686
|
|
Supplemental
disclosure of noncash investing activities:
|
|
|
|
|
|
|
Decrease in accrued
capital expenditures and accounts payable for property and
equipment
|
$
|
(21,062)
|
|
$
|
(27,640)
|
|
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SOURCE Antero Midstream Partners LP