Antero Midstream Partners LP Reports Fourth Quarter and Year-End 2015 Financial and Operating Results

Feb 24, 2016, 16:15 ET from Antero Midstream Partners LP

DENVER, Feb. 24, 2016 /PRNewswire/ -- Antero Midstream Partners LP (NYSE: AM) ("Antero Midstream" or the "Partnership") today released its fourth quarter and full-year 2015 financial and operating results. The relevant combined consolidated financial statements are included in Antero Midstream's Annual Report on Form 10-K for the year ended December 31, 2015, which has been filed with the Securities and Exchange Commission ("SEC").

Highlights for the fourth quarter of 2015:

  • Adjusted EBITDA of $83 million including contribution from the integrated water business, a 5% increase compared to the prior year quarter
  • Distributable cash flow of $72 million resulting in DCF coverage of 1.8x
  • Declared a cash distribution of $0.22 per unit for the fourth quarter of 2015, a 29% increase over the minimum quarterly distribution and a 7% increase sequentially
  • Low pressure gathering volumes averaged 1,124 MMcf/d, a 52% increase compared to the prior year quarter and an 8% increase sequentially
  • High pressure gathering volumes averaged 1,195 MMcf/d, a 32% increase compared to the prior year quarter and a 2% decrease sequentially
  • Compression volumes averaged 478 MMcf/d, a 115% increase compared to the prior year quarter and a 10% increase sequentially
  • Fresh water delivery volumes averaged 119,671 Bbl/d, a 36% decrease compared to the prior year quarter and a 78% increase sequentially

Recent Developments

Distribution for the Fourth Quarter of 2015

The Board of Directors of Antero Resources Midstream Management LLC, the general partner of the Partnership, declared a cash distribution of $0.22 per unit ($0.88 per unit annualized) for the fourth quarter of 2015. The distribution represents a 29% increase over the minimum quarterly distribution and a 7% increase quarter-over-quarter.  The distribution represents the Partnership's fourth consecutive quarterly distribution increase since its initial public offering in November 2014. The distribution will be payable on February 29, 2016 to unitholders of record as of February 15, 2016.

2016 Capital Budget and Guidance

On February 17, 2016, Antero Midstream announced a 2016 capital budget of $435 million, which includes $410 million of expansion capital and $25 million of maintenance capital. The capital budget includes $240 million of expansion capital on gathering and compression infrastructure, approximately 90% of which will be invested in the Marcellus Shale and the remaining 10% will be invested in the Utica Shale. The gathering and compression budget will result in 9 miles and 22 miles of additional low pressure and high pressure gathering pipelines, respectively, and 240 MMcf/d of incremental compression capacity in 2016. Antero Midstream also expects to invest $40 million of expansion capital in fresh water delivery infrastructure, approximately 75% of which will be invested in the Marcellus Shale and the remaining 25% will be invested in the Utica Shale. The Partnership expects to construct one fresh water storage impoundment as well as 11 miles and 19 miles of fresh water trunklines and surface pipelines, respectively.  Antero Midstream's 2016 budget also includes $130 million of construction capital for the advanced wastewater treatment facility (the "Antero Clearwater Facility"), which is expected to be placed into service in late 2017.

Antero Midstream is forecasting adjusted EBITDA of $300 million to $325 million and Distributable Cash Flow ("DCF") of $250 million to $275 million for 2016.  Additionally, the Partnership is forecasting aggregate distributions attributable to calendar year 2016 that are 28% to 30% higher than the aggregate 2015 distributions of $0.795 per unit, while maintaining an average DCF coverage ratio in excess of Antero Midstream's targeted ratio of 1.1x to 1.2x on an annual basis.  

Fourth Quarter 2015 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 fourth quarter 2015 and full year 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 during the fourth quarter of 2015 in order to facilitate a comparison to Antero Midstream's previously provided financial guidance.  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 fourth quarter of 2015 averaged 1,124 MMcf/d, a 52% increase from the fourth quarter of 2014 and an 8% increase sequentially.  High pressure gathering volumes for the fourth quarter of 2015 averaged 1,195 MMcf/d, a 32% increase from the fourth quarter of 2014 and a 2% decrease sequentially.  Compression volumes for the fourth quarter of 2015 averaged 478 MMcf/d, a 115% increase from the fourth quarter of 2014 and a 10% increase sequentially.  Condensate gathering volumes averaged 3,977 Bbl/d during the quarter, a 48% increase from the fourth quarter of 2014 and 39% increase sequentially.  Volumetric throughput growth was driven by production growth from Antero Resources. Fresh water delivery volumes averaged 119,671 Bbl/d during the fourth quarter of 2015, a 36% decrease from the fourth quarter of 2014 and 78% increase sequentially, as Antero began completing 12 Marcellus wells that had been deferred from earlier in the year.

Three months ended

December 31,

Year ended

December 31,

Average Daily Throughput:

2014

2015

% Change

2014

2015

% Change

Low pressure gathering (MMcf/d)

738

1,124

52%

498

1,016

104%

High pressure gathering (MMcf/d)

908

1,195

32%

460

1,186

158%

Compression (MMcf/d)

222

478

115%

104

432

313%

Condensate gathering (Bbl/d)

2,676

3,977

48%

1,701

3,061

80%

Average Daily Volumes:

Fresh water delivery (Bbl/d)

186,221

119,671

(36)%

132,421

96,010

(27)%

 

For the three months ended December 31, 2015, the Partnership reported revenues of $132 million, comprised of $63 million in revenues from the Gathering and Compression segment and $69 million in revenues from the Water Handling and Treatment segment. Revenues increased 31% compared to the prior year quarter, driven by increased gathering and compression volumes.  Direct operating expenses for the Gathering and Compression and Water Handling and Treatment segments were $6 million and $34 million, respectively, for a total of $40 million in direct operating expenses. Direct operating expenses increased 146% year over year, driven by the continued 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 totaled $13 million during the fourth quarter of 2015, including $5 million of non-cash equity-based compensation expense. General and administrative expenses increased $4 million, or 45%, as compared to the fourth quarter of 2014. Total cash and non-cash operating expenses increased by 87% year over year totaling $80 million, including $23 million of depreciation.

Adjusted EBITDA for the fourth quarter of 2015, which includes contribution from the Water Handling and Treatment segment, was $83 million, a 5% increase compared to the prior year quarter due to increased gathering and compression volumes and associated revenue.  Cash interest expense and income tax withholding from the vesting of equity based compensation awards were $3 million and $5 million, respectively. Maintenance capital expenditures during the quarter totaled $3 million and distributable cash flow was $72 million, resulting in a DCF coverage ratio of 1.8x.

2015 Financial Results

Low pressure gathering volumes for 2015 averaged 1,016 MMcf/d, a 104% increase over the prior year, while high pressure gathering volumes averaged 1,186 MMcf/d, a 158% increase over the prior year.  Compression volumes for 2015 averaged 432 MMcf/d, a 313% increase over the prior year.  Condensate gathering volumes averaged 3,061 Bbl/d, an 80% increase over the prior year. Fresh water delivery volumes averaged 96,010 Bbl/d during 2015, a 27% decrease compared to the prior year. 

Total revenues for 2015 were $388 million, a 45% increase over the prior year, and were comprised of $231 million in revenues from the Gathering and Compression segment and $157 million in revenues from the Water Handling and Treatment segment. Direct operating expenses for the Gathering and Compression and Water Handling and Treatment segments were $26 million and $53 million, respectively, for a total of $79 million in direct operating expenses. Direct operating expenses increased 62% year over year due to the expansion of the Partnership's assets and operations. General and administrative expenses totaled $51 million, including $22 million of non-cash equity-based compensation expense, a 69% increase compared to 2014. Total cash and non-cash operating expenses totaled $220 million, including $87 million of depreciation.

Adjusted EBITDA of $280 million for 2015 was 41% higher than the prior year, due to increased throughput and associated revenue. Adjusted EBITDA attributable to the Partnership, which included the contribution from the Water Handling and Treatment segment only during the fourth quarter of 2015 and corresponds to the Partner ship's previously provided 2015 guidance, was $215 million. Cash interest paid attributable to the Partnership was $5 million and maintenance capital expenditures totaled $13 million, resulting in distributable cash flow of $192 million.  DCF coverage for 2015 of 1.4x was in excess of the Partnership's targeted ratio of 1.1x to 1.2x.

Reconciliation of Net Income to Adjusted EBITDA and DCF (Dollars in thousands):

Three months ended

Year ended

December 31,

December 31,

2014

2015

2014

2015

Net income

$

55,898

$

49,008

$

127,875

$

159,105

Add:

Interest expense

2,062

2,892

6,183

8,158

Depreciation expense

17,290

23,152

53,029

86,670

Contingent acquisition consideration accretion

3,333

3,333

Equity-based compensation

4,226

4,810

11,618

22,470

Adjusted EBITDA

$

79,476

$

83,195

$

198,705

$

279,736

Less:

Pre-water acquisition net income attributed

to parent

(22,234)

(22,234)

(40,193)

Pre-water acquisition depreciation expense attributed

to parent

(3,086)

(3,086)

(18,767)

Pre-water acquisition equity-based compensation expense attributed to  parent

(654)

(654)

(3,445)

Pre-water acquisition interest expense attributed to  parent

(359)

(359)

(2,326)

Pre-IPO EBITDA(1)

(36,464)

(155,693)

Adjusted EBITDA attributable to the Partnership

$

16,679

$

83,195

$

16,679

$

215,005

Less:

Cash interest paid - attributable to Partnership

(331)

(2,934)

(331)

(5,149)

Income tax withholding upon vesting of Antero Midstream LP equity-based compensation awards

(4,806)

(4,806)

Maintenance capital expenditures

(1,157)

(3,096)

(1,157)

(13,097)

Distributable cash flow

$

15,191

$

72,359

$

15,191

$

191,953

Total distributions declared

$

14,322

$

39,725

$

14,322

$

132,651

DCF coverage ratio

1.06x

1.82x

1.06x

1.45x

1)

Represents EBITDA generated during 2014 prior to the initial public offering on November 10, 2014.

 

Balance Sheet and Liquidity

As of December 31, 2015, Antero Midstream had $7 million of cash on its balance sheet and $620 million drawn on its credit facility, resulting in $887 billion in available liquidity.  Antero Midstream expects to fund all 2016 capital expenditures with internally generated operating cash flow and available borrowing capacity under Antero Midstream's $1.5 billion bank credit facility.

2015 Capital Spending

Capital expenditures were $445 million in 2015 as compared to $798 million in 2014.  Including $40 million paid by Antero Resources in connection with payables related to capital expenditures associated with assets contributed to Antero Midstream prior to the Partnership IPO, gathering and compression infrastructure capital expenditures were $360 million. Additionally, $60 million was invested in fresh water delivery infrastructure, including $53 million invested during the nine months ended September 30, 2015 from the impact of the recast combined consolidated financial statements. The $445 million of capital invested also includes $69 million related to the ongoing construction of Antero Clearwater Facility.

During 2015, Antero Midstream added 325 MMcf/d of compression capacity in the Marcellus Shale and 120 MMcf/d in the Utica Shale.  Additionally, the Partnership placed into service 25 miles of low pressure pipeline, 15 miles of high pressure pipeline and three miles of condensate pipeline.  The below table summarizes the Partnership's cumulative miles of pipeline and compression capacity at year-end 2014 and 2015:

Gathering and Compression System

Low Pressure Pipeline (miles)

High Pressure Pipeline (miles)

Condensate Pipeline (miles)

Compression Capacity (MMcf/d)

As of December 31,

Marcellus

2014

2015

2014

2015

2014

2015

2014

2015

91

106

62

76

375

700

Utica

45

55

35

36

16

19

120

Total

136

161

97

112

16

19

375

820

 

During 2015, Antero Midstream added 48 miles of buried and surface fresh water pipelines in the Marcellus and Utica Shale combined. Additionally, the Partnership built 5 fresh water storage impoundments.  The below table summarizes the Partnership's cumulative miles of pipeline, wells serviced by water distribution and fresh water storage impoundments at year-end 2014 and 2015.

Water Handling System

Buried Fresh Water Pipeline (miles)

Surface Fresh Water Pipeline (miles)

Wells Serviced by Water Distribution

Fresh Water Impoundments

As of December 31,

2014

2015

2014

2015

2014

2015

2014

2015

Marcellus

103

104

53

80

151

62

22

22

Utica

49

49

6

26

41

62

8

13

Total

152

153

59

106

192

124

30

35

 

Conference Call

Antero Midstream will hold a call on Thursday, February 25, 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, March 4, 2016 at 10:00 am MT at 877-870-5176 (U.S.) or 858-384-5517 (International) using the passcode 10078389.

To access the live webcast and view the related earnings conference call presentation, visit Antero Midstream's website at www.anteromidstream.com.  The webcast will be archived for replay on the Partnership's website until Friday, March 4, 2016 at 10:00 am MT.

Presentation

An updated presentation will be posted to the partnership's website before the February 25, 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 and amortization expense, 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, income tax withholding payments upon vesting of 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

December 31,

Year ended

December 31,

2014

2015

2014

2015

Adjusted EBITDA

$

79,476

$

83,195

$

198,705

$

279,736

Add:

Amortization of deferred financing costs

135

370

135

1,144

Less:

Interest expense

(2,062)

(2,892)

(6,183)

(8,158)

Changes in operating assets and liabilities

(10,612)

(20,554)

(23,224)

(13,044)

Net cash provided by operating activities

$

66,937

$

60,119

$

169,433

$

259,678

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. 

The Partnership 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 our 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 year 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

Combined Consolidated Balance Sheets

December 31, 2014 and 2015

(In thousands, except unit counts)

2014

2015

Assets

Current assets:

Cash and cash equivalents

$

230,192

$

6,883

Accounts receivable–Antero

31,563

65,712

Accounts receivable–third party

5,574

2,707

Prepaid expenses

518

Total current assets

267,847

75,302

Property and equipment:

Gathering and compressions systems

1,180,707

1,485,835

Water handling and treatment systems

421,012

565,616

Less accumulated depreciation

(70,124)

(157,625)

Property and equipment, net

1,531,595

1,893,826

Other assets, net

17,168

10,904

Total assets

$

1,816,610

$

1,980,032

Liabilities and Partners' capital

Current liabilities:

Accounts payable

$

13,021

$

10,941

Accounts payable–Antero

1,380

2,138

Accrued capital expenditures

49,974

50,022

Accrued ad valorem tax

5,862

7,195

Accrued liabilities

9,254

28,168

Other current liabilities

357

150

Total current liabilities

79,848

98,614

Long-term liabilities

Long-term debt

115,000

620,000

Contingent acquisition consideration

178,049

Other

859

624

Total liabilities

195,707

897,287

Partners' capital:

Common unitholders - public (59,286,451 units issued and outstanding)

1,090,037

1,351,317

Common unitholder - Antero (40,929,378 units issued and outstanding)

71,665

30,186

Subordinated unitholder - Antero (75,940,957 units issued and outstanding)

180,757

(299,727)

General partner

969

Total partners' capital

1,342,459

1,082,745

Parent net investment

278,444

Total capital

1,620,903

1,082,745

Total liabilities and partners' capital

$

1,816,610

$

1,980,032

 

ANTERO MIDSTREAM PARTNERS LP

Combined Consolidated Results of Operations

December 31, 2014 and 2015

($ in thousands, except average realized fees)

Year ended December 31, 

Amount of

Percentage

2014

2015

Increase

Change

Revenue:

Revenue - Antero

$

258,029

$

386,164

$

128,135

50

%

Revenue - third-party

8,245

1,160

(7,085)

(86)

%

Total revenue

266,274

387,324

121,050

45

%

Operating expenses:

Direct operating

48,821

78,852

30,031

62

%

General and administrative (before equity-based compensation)

18,748

28,736

9,988

53

%

Equity-based compensation

11,618

22,470

10,852

93

%

Depreciation

53,029

86,670

33,641

63

%

Contingent acquisition consideration accretion

3,333

3,333

*

Total operating expenses

132,216

220,061

87,845

66

%

Operating income

134,058

167,263

33,205

25

%

Interest expense

6,183

8,158

1,975

32

%

Net income

$

127,875

$

159,105

$

31,230

24

%

Adjusted EBITDA

$

198,705

$

279,736

$

81,031

41

%

Operating Data:

Gathering—low pressure (MMcf)

181,727

370,830

189,103

104

%

Gathering—high pressure (MMcf)

167,935

432,861

264,926

158

%

Compression (MMcf)

38,104

157,515

119,411

313

%

Condensate gathering (MBbl)

621

1,117

496

80

%

Fresh water distribution (MBbl)

48,333

35,044

(13,289)

(27)

%

Wells serviced by water distribution

192

124

(68)

(35)

%

Gathering—low pressure (MMcf/d)

498

1,016

518

104

%

Gathering—high pressure (MMcf/d)

460

1,186

726

158

%

Compression (MMcf/d)

104

432

328

313

%

Condensate gathering (MBbl/d)

2

3

1

80

%

Fresh water distribution (MBbl/d)

132

96

(36)

(27)

%

Average realized fees:

Average gathering—low pressure fee ($/Mcf)

$

0.31

$

0.31

$

0.00

2

%

Average gathering—high pressure fee ($/Mcf)

$

0.18

$

0.19

$

0.01

2

%

Average compression fee ($/Mcf)

$

0.18

$

0.19

$

0.01

2

%

Average gathering—condensate fee ($/Bbl)

$

4.08

$

4.16

$

0.08

2

%

Average fresh water distribution fee—Antero ($/Bbl)

$

3.56

$

3.64

$

0.08

2

%

Average fresh water distribution fee—third party ($/Bbl)

$

3.00

$

4.75

$

1.75

58

%

* Not meaningful or applicable.

 

ANTERO MIDSTREAM PARTNERS LP

Combined Consolidated Results of Operations

December 31, 2014 and 2015

($ in thousands, except average realized fees)

Three Months Ended

December 31,

Amount of

2014

2015

Increase

(Decrease)

Percentage Change

Revenue:

Revenue - Antero

$

95,144

$

131,348

$

36,204

38

%

Revenue - third-party

5,574

345

(5,229)

(94)

%

Total revenue

100,718

131,693

30,975

31

%

Operating expenses:

Direct operating

16,289

40,021

23,732

146

%

General and administrative (before equity-based compensation)

4,953

8,476

3,523

71

%

Equity-based compensation

4,226

4,810

584

14

%

Depreciation

17,290

23,152

5,863

34

%

Contingent acquisition consideration accretion

3,333

3,333

*

Total operating expenses

42,758

79,793

37,035

87

%

Operating income

57,960

51,900

(6,060)

(10)

%

Interest expense

2,062

2,892

830

40

%

Net income

$

55,898

$

49,008

$

(6,890)

(12)

%

Adjusted EBITDA

$

79,476

$

83,195

$

3,719

5

%

Operating Data:

Gathering—low pressure (MMcf)

67,899

103,388

35,489

52

%

Gathering—high pressure (MMcf)

83,534

109,931

26,397

32

%

Compression (MMcf)

20,394

43,932

23,538

115

%

Condensate gathering (MBbl)

246

366

119

48

%

Fresh water distribution (MBbl)

17,132

11,011

(6,121)

(36)

%

Wells serviced by water distribution

55

39

(16)

(29)

%

Gathering—low pressure (MMcf/d)

738

1,124

386

52

%

Gathering—high pressure (MMcf/d)

908

1,195

287

32

%

Compression (MMcf/d)

222

478

256

115

%

Condensate gathering (MBbl/d)

3

4

1

48

%

Fresh water distribution (MBbl/d)

186

120

(66)

(36)

%

Average realized fees:

Average gathering—low pressure fee ($/Mcf)

$

0.31

$

0.31

$

0.00

2

%

Average gathering—high pressure fee ($/Mcf)

$

0.18

$

0.19

$

0.01

2

%

Average compression fee ($/Mcf)

$

0.18

$

0.19

$

0.01

2

%

Average gathering—condensate fee ($/Bbl)

$

4.08

$

4.16

$

0.08

2

%

Average fresh water distribution fee—Antero ($/Bbl)

$

3.56

$

3.66

$

0.10

3

%

Average fresh water distribution fee—third party ($/Bbl)

$

3.00

$

$

(3.00)

(100)

%

* Not meaningful or applicable.

 

ANTERO MIDSTREAM PARTNERS LP

Combined Consolidated Results of Operations

December 31, 2014 and 2015

(In thousands)

Gathering and

Water

Consolidated

Compression

Handling

Total

Year Ended December 31, 2014

Revenues:

Revenue - Antero

$

95,746

$

162,283

$

258,029

Revenue - third-party

-

8,245

8,245

Total revenues

95,746

170,528

266,274

Operating expenses:

Direct operating

15,470

33,351

48,821

General and administrative (before equity-based compensation)

13,416

5,332

18,748

Equity-based compensation

8,619

2,999

11,618

Depreciation

36,789

16,240

53,029

Total expenses

74,294

57,922

132,216

Operating income

$

21,452

$

112,606

$

134,058

Capital expenditures

$

553,582

$

200,116

$

753,698

Year Ended December 31, 2015

Revenues:

Revenue - Antero

$

230,210

$

155,954

$

386,164

Revenue - third-party

382

778

1,160

Total revenues

230,592

156,732

387,324

Operating expenses:

Direct operating

25,783

53,069

78,852

General and administrative (before equity-based compensation)

22,608

6,128

28,736

Equity-based compensation

17,840

4,630

22,470

Depreciation

60,838

25,832

86,670

Contingent acquisition consideration accretion

-

3,333

3,333

Total expenses

127,069

92,992

220,061

Operating income

$

103,523

$

63,740

$

167,263

Capital expenditures

$

320,002

$

132,633

$

452,635

 

ANTERO MIDSTREAM PARTNERS LP

Consolidated Statements of Cash Flows

Years Ended December 31, 2013, 2014 and 2015

(In thousands)

2013

2014

2015

Cash flows provided by operating activities:

Net income

$

2,015

$

127,875

$

159,105

Adjustment to reconcile net income to net cash provided by operating activities:

Depreciation

14,119

53,029

86,670

Accretion of contingent acquisition consideration

3,333

Equity-based compensation

24,349

11,618

22,470

Amortization of deferred financing costs

135

1,144

Changes in assets and liabilities:

Accounts receivable–Antero

(6,267)

(29,988)

(35,148)

Accounts receivable–third party

(5,574)

2,867

Prepaid expenses

(518)

518

Accounts payable

863

2,803

Accounts payable–Antero

1,059

475

Accrued ad valorem tax

1,948

3,868

1,333

Accrued liabilities

2,081

7,066

14,108

Net cash provided by operating activities

38,245

169,433

259,678

Cash flows used in investing activities:

Additions to gathering and compression systems

(389,340)

(553,582)

(320,002)

Additions to Water handling and treatment systems

(200,256)

(200,116)

(132,633)

Amounts paid to Antero for property and equipment

(40,277)

Change in other assets

(8,581)

(3,530)

7,180

Net cash used in investing activities

(598,177)

(797,505)

(445,455)

Cash flows provided by (used in) financing activities:

Deemed contribution from (distribution to) Antero, net

560,800

(5,375)

(52,669)

Distributions to unitholders

(107,248)

Net proceeds from initial public offering

1,087,224

Borrowings on bank credit facilities, net

115,000

505,000

Distribution to Antero

(332,500)

(620,997)

Proceeds from private placement of common units, net

240,703

Payments of deferred financing costs

(4,871)

(2,059)

Other

(868)

(1,214)

(262)

Net cash provided by (used in) financing activities

559,932

858,264

(37,532)

Net increase (decrease) in cash and cash equivalents

230,192

(223,309)

Cash and cash equivalents, beginning of period

230,192

Cash and cash equivalents, end of period

$

$

230,192

$

6,883

Supplemental disclosure of cash flow information:

Cash paid during the period for interest

$

164

$

5,864

$

7,765

Supplemental disclosure of noncash investing activities:

Increase in accrued capital expenditures and accounts payable for property and equipment

$

29,852

$

37,596

$

4,552

 

Logo - http://photos.prnewswire.com/prnh/20141209/163435LOGO

 

SOURCE Antero Midstream Partners LP



RELATED LINKS

http://www.anteromidstream.com