CONE Midstream Reports Strong Fourth Quarter Results
CANONSBURG, Pa., Feb. 17, 2016 /PRNewswire/ -- 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, 2015.(1) The Partnership also announced financial guidance for 2016.
Fourth Quarter Results
Highlights of fourth quarter 2015 results attributable to the Partnership as compared to the fourth quarter of 2014 include:
- Net income of $22.5 million as compared to $15.3 million
- Average daily throughput volumes of 760 billion Btu per day (BBtu/d) as compared to 545 BBtu/d
- Adjusted EBITDA(2) of $25.2 million as compared to $16.6 million
- Distributable cash flow (DCF)(2) of $22.4 million as compared to $14.8 million
- Cash distribution coverage of 1.59x on an as declared basis
Full Year 2015 Results
Highlights of full year 2015 results attributable to the Partnership include:
- Net income of $71.2 million
- Adjusted EBITDA(2) of $80.3 million
- Distributable cash flow (DCF)(2) of $70.9 million
Management Comment
"We are pleased to report another quarter of excellent financial and operational results for CONE Midstream," said John T. Lewis, Chairman of the Board and Chief Executive Officer of CONE Midstream GP LLC (the "General Partner"). "Our throughput volume, net income, adjusted EBITDA and DCF all exhibited strong and steady growth during each consecutive quarter of 2015. Fourth quarter average throughput increased by 215 BBtu/d which equates to volume growth of 39% over fourth quarter 2014. Our focus on operational efficiencies and cost control boosted our financial results, with net income for the quarter increasing by 47% over last year, and fourth quarter adjusted EBITDA and DCF each growing by more than 50% from a year ago.
Mr. Lewis continued, "Based on these strong results and our current outlook, the Partnership paid a quarterly cash distribution of $0.2362 per unit on February 12th. The distribution rate represents a sequential quarterly increase of 3.6% which equates to an annual growth rate of 15.2%. Our distribution coverage during 2015 also increased steadily each quarter and reached 1.59x for the fourth quarter on an as declared basis.
"We have maintained our strong financial position during 2015," concluded Mr. Lewis. "Our business model was built for measured growth driven by a strong balance sheet, underlying organic growth with stacked pays, and potentially supplemented by the drop down of additional interests in our three different development companies. In addition, CONE's business development function should help supplement sponsor driven revenues. While commodity prices have receded and the MLP space faces various challenges, our robust balance sheet and distribution coverage ratio has CONE Midstream Partners advantageously positioned."
Quarterly Distribution
As previously announced, the Board of Directors of the General Partner declared a quarterly cash distribution of $0.2362 per unit with respect to the fourth quarter of 2015. The distribution payment was made on February 12, 2016 to unitholders of record on February 4, 2016. The distribution, which equates to an annual rate of $0.9448 per unit, represents an increase of 3.6% over the prior quarter and an increase of 11.2% over the Minimum Quarterly Distribution as defined in our Partnership Agreement.
Capital Investment and Resources
CONE Midstream's allocated fourth quarter 2015 share of investment in expansion projects was $23.0 million. Total expansion capital investment at the three development companies in which CONE Midstream holds controlling interests was $53.9 million,(3) with individual development company totals as follows:
- Anchor Systems - $29.0 million
- Growth Systems - $0.2 million
- Additional Systems - $24.6 million
CONE Midstream's respective share of maintenance capital expenditures for the three development companies for fourth quarter 2015 was $2.6 million. Maintenance capital expenditures in the aggregate for the development companies in which CONE Midstream holds controlling interests totaled $4.4 million.
As of December 31, 2015, CONE Midstream had outstanding borrowings of $73.5 million under its $250.0 million revolving credit facility.
2016 Guidance
Based on current expectations, management is providing the following guidance for 2016. Full year 2016 adjusted EBITDA attributable to the Partnership is expected to be in the range of $93 - $103 million and full year Distributable Cash Flow attributable to the Partnership is expected to be in the range of $79 - $89 million. Management currently anticipates that total 2016 capital expenditures attributable to the Partnership will be in the range of $30 to $35 million, of which approximately $10 to $12 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 Financial and Operational Results Conference Call
A conference call and webcast, during which management will discuss fourth quarter 2015 financial and operational results, is scheduled for February 17, 2016 at 1:00 p.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 https://www.webcaster4.com/webcast/page/998/12905. 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 https://www.webcaster4.com/webcast/page/998/12905 shortly after the conclusion of the conference. A telephonic replay will be available through February 24, 2016 by dialing 877-344-7529 (international: 412-317-0088) and using the conference playback number 10079438.
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_______________ | |
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(1) |
Unless otherwise indicated, the reporting measures included in this news release reflect the unallocated total activity of the three development companies jointly owned by the Partnership and CONE Gathering LLC ("CONE Gathering"). Because the Partnership owns a controlling interest in each of the three development companies, it fully consolidates their financial results. The Partnership's current financial interests in the development companies are: 75% in the Anchor Systems, 5% in the Growth Systems, and 5% in the Additional Systems. CONE Gathering is a midstream joint venture formed by CONSOL Energy Inc. and Noble Energy, Inc. and owns non-controlling interests in the Partnership's development companies. |
|
(2) |
Adjusted EBITDA and DCF are not Generally Accepted Accounting Principles ("GAAP") measures. Definitions and reconciliations of these non-GAAP measures to GAAP reporting measures appear in the financial tables which follow. |
|
(3) |
Detail may not foot due to rounding. |
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Contact: |
Stephen R. Milbourne |
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CONE Investor Relations | |
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Phone: |
724-485-4408 |
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Email: |
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* * * * *
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 "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. 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. These forward-looking statements involve certain risks and uncertainties, including, among others, that our business plans may change as circumstances warrant. For more information concerning factors that could cause actual results to differ materially from those conveyed in the forward-looking statements, please refer to the "Risk Factors" section 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.
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CONE MIDSTREAM PARTNERS LP CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per unit data) (unaudited) | ||||||||||||||||
|
Three Months Ended |
Twelve Months Ended | |||||||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||||||
|
Revenue |
||||||||||||||||
|
Gathering Revenue — Related Party |
$ |
58,785 |
$ |
42,400 |
$ |
203,423 |
$ |
130,087 |
||||||||
|
Other Income |
— |
85 |
— |
85 |
||||||||||||
|
Total Revenue |
58,785 |
42,485 |
203,423 |
130,172 |
||||||||||||
|
Expenses |
||||||||||||||||
|
Operating Expense — Third Party |
6,781 |
9,035 |
28,987 |
27,371 |
||||||||||||
|
Operating Expense — Related Party |
7,858 |
5,519 |
29,937 |
24,072 |
||||||||||||
|
General and Administrative Expense — Third Party |
911 |
886 |
4,444 |
1,822 |
||||||||||||
|
General and Administrative Expense — Related Party |
2,251 |
1,769 |
8,636 |
4,726 |
||||||||||||
|
Depreciation Expense |
4,623 |
2,225 |
15,053 |
7,330 |
||||||||||||
|
Interest Expense |
565 |
24 |
835 |
24 |
||||||||||||
|
Total Expense |
22,989 |
19,458 |
87,892 |
65,345 |
||||||||||||
|
Net Income |
35,796 |
23,027 |
115,531 |
64,827 |
||||||||||||
|
Less: Net Income Attributable to Noncontrolling Interest |
13,330 |
7,776 |
44,284 |
7,858 |
||||||||||||
|
Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP |
$ |
22,466 |
$ |
15,251 |
$ |
71,247 |
$ |
56,969 |
||||||||
|
Calculation of Limited Partner Interest in Net Income: |
||||||||||||||||
|
Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP (1) |
$ |
22,466 |
$ |
15,251 |
$ |
71,247 |
$ |
15,378 |
||||||||
|
Less: General Partner Interest in Net Income |
449 |
305 |
1,425 |
308 |
||||||||||||
|
Limited Partner Interest in Net Income |
$ |
22,017 |
$ |
14,946 |
$ |
69,822 |
$ |
15,070 |
||||||||
|
Net Income per Limited Partner Unit - Basic |
$ |
0.38 |
$ |
0.26 |
$ |
1.20 |
$ |
0.26 |
||||||||
|
Net Income per Limited Partner Unit - Diluted |
$ |
0.38 |
$ |
0.26 |
$ |
1.20 |
$ |
0.26 |
||||||||
|
Limited Partner Units Outstanding - Basic |
58,326 |
58,326 |
58,326 |
58,326 |
||||||||||||
|
Limited Partner Unit Outstanding - Diluted |
58,337 |
58,326 |
58,340 |
58,326 |
||||||||||||
|
(1) |
Reflective of general and limited partner interest in net income since closing of the IPO. |
CONE MIDSTREAM PARTNERS LP
RECONCILIATION OF NET INCOME TO EBITDA AND DISTRIBUTABLE CASH FLOW
(in thousands)
(unaudited)
Definition of Non-GAAP Financial Measures
Adjusted EBITDA
We define adjusted EBITDA as net income (loss) before net interest expense, depreciation and amortization, as adjusted for non-cash items which should not be included in the calculation of distributable cash flow. Adjusted EBITDA 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:
- 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 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 adjusted EBITDA are net income and net cash provided by operating activities. Adjusted EBITDA should not be considered an alternative to net income, net cash provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA 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, adjusted EBITDA as presented below 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 report 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.
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CONE MIDSTREAM PARTNERS LP | |||||||||||||||||
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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 |
Twelve Months Ended | ||||||||||||||||
|
2015 |
2014 |
2015 |
2014 | ||||||||||||||
|
Net Income |
$ |
35,796 |
$ |
23,027 |
$ |
115,531 |
$ |
64,827 |
|||||||||
|
Interest Expense |
565 |
24 |
835 |
24 |
|||||||||||||
|
Depreciation Expense |
4,623 |
2,225 |
15,053 |
7,330 |
|||||||||||||
|
EBITDA |
40,984 |
25,276 |
131,419 |
72,181 |
|||||||||||||
|
Non-Cash Unit-Based Compensation |
92 |
— |
402 |
— |
|||||||||||||
|
Adjusted EBITDA |
41,076 |
25,276 |
131,821 |
72,181 |
|||||||||||||
|
Less: |
|||||||||||||||||
|
Net Income Attributable to Noncontrolling Interest |
13,330 |
7,776 |
44,284 |
7,858 |
|||||||||||||
|
Interest Expense Attributable to Noncontrolling Interest |
331 |
— |
428 |
— |
|||||||||||||
|
Depreciation Expense Attributable to Noncontrolling Interest |
2,246 |
857 |
6,799 |
863 |
|||||||||||||
|
Adjusted EBITDA Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP |
$ |
25,169 |
$ |
16,643 |
$ |
80,310 |
$ |
63,460 |
|||||||||
|
Less: Cash Interest Paid, net |
234 |
— |
407 |
— |
|||||||||||||
|
Less: Ongoing Maintenance Capital Expenditures, Net of Expected Reimbursements |
2,554 |
1,799 |
8,984 |
6,008 |
|||||||||||||
|
Distributable Cash Flow |
$ |
22,381 |
$ |
14,844 |
$ |
70,919 |
$ |
57,452 |
|||||||||
|
Net Cash Provided by Operating Activities |
$ |
16,749 |
$ |
22,331 |
$ |
116,017 |
$ |
84,694 |
|||||||||
|
Interest Expense |
565 |
24 |
835 |
24 |
|||||||||||||
|
Other, Including Changes in Working Capital |
23,762 |
2,921 |
14,969 |
(12,537) |
|||||||||||||
|
Adjusted EBITDA |
41,076 |
25,276 |
131,821 |
72,181 |
|||||||||||||
|
Less: |
|||||||||||||||||
|
Net Income Attributable to Noncontrolling Interest |
13,330 |
7,776 |
44,284 |
7,858 |
|||||||||||||
|
Interest Expense Attributable to Noncontrolling Interest |
331 |
— |
428 |
— |
|||||||||||||
|
Depreciation Expense Attributable to Noncontrolling Interest |
2,246 |
857 |
6,799 |
863 |
|||||||||||||
|
Adjusted EBITDA Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP |
$ |
25,169 |
$ |
16,643 |
$ |
80,310 |
$ |
63,460 |
|||||||||
|
Less: Cash Interest Paid, net |
234 |
— |
407 |
— |
|||||||||||||
|
Less: Ongoing Maintenance Capital Expenditures, Net of Expected Reimbursements |
2,554 |
1,799 |
8,984 |
6,008 |
|||||||||||||
|
Distributable Cash Flow |
$ |
22,381 |
$ |
14,844 |
$ |
70,919 |
$ |
57,452 |
|||||||||
|
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 2015 |
Q2 2015 |
Q3 2015 |
Q4 2015 |
Twelve | ||||||||||||||
|
Net Income |
$ |
21,216 |
$ |
24,905 |
$ |
33,614 |
$ |
35,796 |
$ |
115,531 |
|||||||||
|
Interest Expense |
65 |
47 |
158 |
565 |
835 |
||||||||||||||
|
Depreciation Expense |
2,994 |
3,667 |
3,769 |
4,623 |
15,053 |
||||||||||||||
|
EBITDA |
24,275 |
28,619 |
37,541 |
40,984 |
131,419 |
||||||||||||||
|
Non-Cash Unit-Based Compensation Expense |
96 |
96 |
118 |
92 |
402 |
||||||||||||||
|
Adjusted EBITDA |
24,371 |
28,715 |
37,659 |
41,076 |
131,821 |
||||||||||||||
|
Less: |
|||||||||||||||||||
|
Net Income Attributable to Noncontrolling Interest |
7,004 |
9,993 |
13,957 |
13,330 |
44,284 |
||||||||||||||
|
Interest Expense Attributable to Noncontrolling Interest |
20 |
14 |
63 |
331 |
428 |
||||||||||||||
|
Depreciation Expense Attributable to Noncontrolling Interest |
1,166 |
1,659 |
1,728 |
2,246 |
6,799 |
||||||||||||||
|
Adjusted EBITDA Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP |
$ |
16,181 |
$ |
17,049 |
$ |
21,911 |
$ |
25,169 |
$ |
80,310 |
|||||||||
|
Less: Cash Interest Paid, net |
45 |
33 |
95 |
234 |
407 |
||||||||||||||
|
Less: Ongoing Maintenance Capital Expenditures, Net of |
1,991 |
2,148 |
2,291 |
2,554 |
8,984 |
||||||||||||||
|
Distributable Cash Flow |
$ |
14,145 |
$ |
14,868 |
$ |
19,525 |
$ |
22,381 |
$ |
70,919 |
|||||||||
|
Net Cash Provided by Operating Activities |
$ |
10,206 |
$ |
50,254 |
$ |
38,808 |
$ |
16,749 |
$ |
116,017 |
|||||||||
|
Interest Expense |
65 |
47 |
158 |
565 |
835 |
||||||||||||||
|
Other, Including Changes in Working Capital |
14,100 |
(21,586) |
(1,307) |
23,762 |
14,969 |
||||||||||||||
|
Adjusted EBITDA |
24,371 |
28,715 |
37,659 |
41,076 |
131,821 |
||||||||||||||
|
Less: |
|||||||||||||||||||
|
Net Income Attributable to Noncontrolling Interest |
7,004 |
9,993 |
13,957 |
13,330 |
44,284 |
||||||||||||||
|
Interest Expense Attributable to Noncontrolling Interest |
20 |
14 |
63 |
331 |
428 |
||||||||||||||
|
Depreciation Expense Attributable to Noncontrolling Interest |
1,166 |
1,659 |
1,728 |
2,246 |
6,799 |
||||||||||||||
|
Adjusted EBITDA Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP |
$ |
16,181 |
$ |
17,049 |
$ |
21,911 |
$ |
25,169 |
$ |
80,310 |
|||||||||
|
Less: Cash Interest Paid, net |
45 |
33 |
95 |
234 |
407 |
||||||||||||||
|
Less: Ongoing Maintenance Capital Expenditures, Net of |
1,991 |
2,148 |
2,291 |
2,554 |
8,984 |
||||||||||||||
|
Distributable Cash Flow |
$ |
14,145 |
$ |
14,868 |
$ |
19,525 |
$ |
22,381 |
$ |
70,919 |
|||||||||
|
Distributions Declared |
$ |
12,647 |
$ |
13,094 |
$ |
13,570 |
$ |
14,062 |
$ |
53,373 |
|||||||||
|
Distribution Coverage Ratio - Declared |
1.12 |
x |
1.14 |
x |
1.44 |
x |
1.59 |
x |
1.33 |
x | |||||||||
|
Distributable Cash Flow |
$ |
14,145 |
$ |
14,868 |
$ |
19,525 |
$ |
22,381 |
$ |
70,919 |
|||||||||
|
Distributions Paid |
$ |
12,784 |
$ |
12,647 |
$ |
13,094 |
$ |
13,570 |
$ |
52,095 |
|||||||||
|
Distribution Coverage Ratio - Paid |
1.11 |
x |
1.18 |
x |
1.49 |
x |
1.65 |
x |
1.36 |
x | |||||||||
|
CONE MIDSTREAM PARTNERS LP CONSOLIDATED BALANCE SHEETS (in thousands, except number of units) (Unaudited) | |||||||
|
December 31, |
December 31, | ||||||
|
ASSETS |
|||||||
|
Current Assets: |
|||||||
|
Cash |
$ |
217 |
$ |
3,252 |
|||
|
Receivables — Related Party |
36,418 |
58,749 |
|||||
|
Inventory |
18,916 |
— |
|||||
|
Prepaid Expenses |
1,873 |
1,280 |
|||||
|
Other Current Assets |
164 |
164 |
|||||
|
Total Current Assets |
57,588 |
63,445 |
|||||
|
Property and Equipment: |
|||||||
|
Property and Equipment |
897,918 |
639,735 |
|||||
|
Less — Accumulated Depreciation |
31,609 |
16,989 |
|||||
|
Property and Equipment — Net |
866,309 |
622,746 |
|||||
|
Other Non-Current Assets |
528 |
613 |
|||||
|
TOTAL ASSETS |
$ |
924,425 |
$ |
686,804 |
|||
|
LIABILITIES AND EQUITY |
|||||||
|
Current Liabilities: |
|||||||
|
Accounts Payable |
$ |
46,155 |
$ |
70,635 |
|||
|
Accounts Payable — Related Party |
1,628 |
2,106 |
|||||
|
Total Current Liabilities |
47,783 |
72,741 |
|||||
|
Other Liabilities: |
|||||||
|
Revolving Credit Facility |
73,500 |
31,300 |
|||||
|
Total Liabilities |
121,283 |
104,041 |
|||||
|
Partners' Capital: |
|||||||
|
Common Units - (29,163,121 Units Issued and Outstanding at December 31, 2015 and 2014) |
399,399 |
389,612 |
|||||
|
Subordinated Units (29,163,121 Units Issued and Outstanding at December 31, 2015 and 2014) |
(82,900) |
(92,285) |
|||||
|
General Partner Interest |
(3,389) |
(3,772) |
|||||
|
Capital Attributable to CONE Midstream Partners LP |
313,110 |
293,555 |
|||||
|
Noncontrolling Interest |
490,032 |
289,208 |
|||||
|
Total Partners' Capital |
803,142 |
582,763 |
|||||
|
TOTAL LIABILITIES AND PARTNERS' CAPITAL |
$ |
924,425 |
$ |
686,804 |
|||
|
CONE MIDSTREAM PARTNERS LP CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) | |||||||
|
Twelve Months Ended | |||||||
|
2015 |
2014 | ||||||
|
Cash Flows from Operating Activities: |
|||||||
|
Net Income |
$ |
115,531 |
$ |
64,827 |
|||
|
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: |
|||||||
|
Depreciation Expense and Amortization of Debt Issuance Costs |
15,217 |
7,330 |
|||||
|
Gain on Disposition of Equipment |
— |
(85) |
|||||
|
Unit Based Compensation |
402 |
— |
|||||
|
Changes in Operating Assets: |
|||||||
|
Receivables — Related Party |
(3,148) |
(9,029) |
|||||
|
Inventory |
(2,284) |
— |
|||||
|
Prepaid Expenses |
(663) |
(1,280) |
|||||
|
Non-Current Assets |
(10) |
— |
|||||
|
Changes in Operating Liabilities: |
|||||||
|
Accounts Payable |
(8,670) |
23,806 |
|||||
|
Accounts Payable — Related Party |
(358) |
(875) |
|||||
|
Net Cash Provided by Operating Activities |
116,017 |
84,694 |
|||||
|
Cash Flows from Investing Activities: |
|||||||
|
Capital Expenditures |
(291,211) |
(269,686) |
|||||
|
Proceeds on Sale of Equipment |
— |
85 |
|||||
|
Net Cash Used in Investing Activities |
(291,211) |
(269,601) |
|||||
|
Cash Flows from Financing Activities: |
|||||||
|
Investments by Partners and Noncontrolling Interest Holders |
182,053 |
146,626 |
|||||
|
Proceeds from Issuance of Common Units, Net of Offering Costs |
— |
413,005 |
|||||
|
Distribution of Proceeds |
— |
(407,971) |
|||||
|
Distributions to Unitholders |
(52,094) |
— |
|||||
|
Payment of Revolver Fees |
— |
(777) |
|||||
|
Proceeds from Revolver |
42,200 |
31,300 |
|||||
|
Net Cash Provided by Financing Activities |
172,159 |
182,183 |
|||||
|
Net Decrease in Cash |
(3,035) |
(2,724) |
|||||
|
Cash at Beginning of Period |
3,252 |
5,976 |
|||||
|
Cash at End of Period |
$ |
217 |
$ |
3,252 |
|||
|
CONE MIDSTREAM PARTNERS LP SUPPLEMENTAL STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||
|
Three Months Ended | |||||||
|
2015 |
2014 | ||||||
|
Cash Flows from Operating Activities: |
|||||||
|
Net Income |
$ |
35,796 |
$ |
23,027 |
|||
|
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: |
|||||||
|
Depreciation Expense and Amortization of Debt Issuance Costs |
4,664 |
2,225 |
|||||
|
Gain on Disposition of Equipment |
— |
(85) |
|||||
|
Unit Based Compensation |
92 |
— |
|||||
|
Changes in Operating Assets: |
|||||||
|
Receivables — Related Party |
(2,046) |
(9,344) |
|||||
|
Prepaid Expenses |
(1,133) |
(798) |
|||||
|
Non-Current Assets |
— |
168 |
|||||
|
Changes in Operating Liabilities: |
|||||||
|
Accounts Payable |
(15,482) |
9,404 |
|||||
|
Accounts Payable — Related Party |
(5,142) |
(2,266) |
|||||
|
Net Cash Provided by Operating Activities |
16,749 |
22,331 |
|||||
|
Cash Flows from Investing Activities: |
|||||||
|
Capital Expenditures |
(58,261) |
(83,985) |
|||||
|
Proceeds on Sale of Equipment |
— |
85 |
|||||
|
Net Cash Used in Investing Activities |
(58,261) |
(83,900) |
|||||
|
Cash Flows from Financing Activities: |
|||||||
|
Investments by Partners and Noncontrolling Interest Holders |
37,093 |
26,000 |
|||||
|
Proceeds from Issuance of Common Units, Net of Offering Costs |
— |
264 |
|||||
|
Distribution to Unitholders |
(13,569) |
— |
|||||
|
Payment of Revolver Fees |
— |
(91) |
|||||
|
Proceeds from Revolver |
17,000 |
31,300 |
|||||
|
Net Cash Provided by Financing Activities |
40,524 |
57,473 |
|||||
|
Net Decrease in Cash |
(988) |
(4,096) |
|||||
|
Cash at Beginning of Period |
1,205 |
7,348 |
|||||
|
Cash at End of Period |
$ |
217 |
$ |
3,252 |
|||
|
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 CNNX |
|||||||||||||||
|
Maintenance Capital |
$ |
2,500 |
$ |
18 |
$ |
36 |
$ |
2,554 |
|||||||
|
Expansion Capital |
21,776 |
9 |
1,231 |
23,016 |
|||||||||||
|
Total Capital Investment Net to CNNX |
$ |
24,276 |
$ |
27 |
$ |
1,267 |
$ |
25,570 |
|||||||
|
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, 2014 | |||||||||||||||
|
Development Company | |||||||||||||||
|
Anchor |
Growth |
Additional |
TOTAL | ||||||||||||
|
Income Summary |
|||||||||||||||
|
Revenue |
$ |
35,166 |
$ |
2,464 |
$ |
4,855 |
$ |
42,485 |
|||||||
|
Expenses |
15,025 |
1,847 |
2,586 |
19,458 |
|||||||||||
|
Net Income |
20,141 |
617 |
2,269 |
23,027 |
|||||||||||
|
Less: Net Income Attributable to Noncontrolling Interest |
5,035 |
586 |
2,155 |
7,776 |
|||||||||||
|
Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP |
$ |
15,106 |
$ |
31 |
$ |
114 |
$ |
15,251 |
|||||||
|
Operating Statistics - Gathered Volumes |
|||||||||||||||
|
Dry Gas (BBtu/d) |
389 |
71 |
17 |
477 |
|||||||||||
|
Wet Gas (BBtu/d) |
313 |
— |
81 |
394 |
|||||||||||
|
Condensate (Bcfe/d) |
12 |
— |
— |
12 |
|||||||||||
|
Total Gathered Volumes |
714 |
71 |
98 |
883 |
|||||||||||
|
Total Volumes Net to CONE Midstream Partners LP |
536 |
4 |
5 |
545 |
|||||||||||
|
Capital Investment |
|||||||||||||||
|
Maintenance Capital |
$ |
2,372 |
$ |
230 |
$ |
157 |
$ |
2,759 |
|||||||
|
Expansion Capital |
18,465 |
22,296 |
40,465 |
81,226 |
|||||||||||
|
Total Capital Investment |
$ |
20,837 |
$ |
22,526 |
$ |
40,622 |
$ |
83,985 |
|||||||
|
Capital Investment Net to CNNX |
|||||||||||||||
|
Maintenance Capital |
$ |
1,779 |
$ |
12 |
$ |
8 |
$ |
1,799 |
|||||||
|
Expansion Capital |
13,849 |
1,114 |
2,023 |
16,986 |
|||||||||||
|
Total Capital Investment Net to CNNX |
$ |
15,628 |
$ |
1,126 |
$ |
2,031 |
$ |
18,785 |
|||||||
SOURCE CONE Midstream Partners LP
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