Rice Midstream Partners LP Announces 2015 Capital Budget and Guidance

CANONSBURG, Pa., Feb. 17, 2015 /PRNewswire/ -- Rice Midstream Partners LP (NYSE: RMP) ("RMP") today announced its 2015 capital budget and guidance. Estimated capital investments and financial guidance include:

• 2015 capital budget of $180 million
• Adjusted EBITDA of $55 – $60 million⁽¹⁾
• Distributable cash flow of $48 - $53 million⁽¹⁾
• Average DCF coverage ratio of 1.1x to 1.2x during 2015
• Forecasted 2015 annual distribution of $0.75/unit

2015 Capital Budget

We expect to invest $180 million in capital expenditures during 2015, including $175 million of expansion capital investments and $5 million for maintenance related activities. We plan to spend $85 million constructing 29 miles of high pressure gas gathering pipelines and $90 million adding compression capacity in Washington and Greene Counties, Pennsylvania. By year end 2015, we expect to have 111 miles of high pressure gathering pipelines in service, which is expected to provide available throughput capacity of 4.1 MMDth/d to service development programs of Rice Energy Inc. (NYSE: RICE) ("Rice Energy") and third parties. During 2015, we will add meaningful compression capacity, which we expect to be placed into service mid-2016 and compress substantially all of our throughput volumes. Rice Energy announced its 2015 capital expenditure budget this morning in a separate news release, which is available on www.riceenergy.com.

2015 Financial Guidance

We anticipate 2015 Adjusted EBITDA of $55 – 60 million and distributable cash flow of $48 – $53 million. We expect to pay a quarterly distribution of $0.1875 per unit ($0.75 per unit annualized) while maintaining an average DCF coverage ratio of 1.1x to 1.2x over the course of the year.

Commenting on the 2015 RMP capital budget and guidance, Daniel J. Rice IV, Chief Executive Officer, said, "After completing our successful initial public offering, we are looking forward to our bright future and significant growth opportunities ahead of us. We plan to build coverage this year in preparation for strong distribution growth beginning in 2016."

Financial Position and Liquidity

As of December 31, 2014, RMP had $27 million of cash on hand and $450 million available with zero drawn under our new senior credit facility, providing total liquidity of $477 million to fund our 2015 capital budget.

Conference Call

RMP will host a conference call on March 12, 2015 at 11:00 a.m. Eastern time (10:00 a.m. Central time) to discuss fourth quarter 2014 financial and operating results. To listen to a live audio webcast of the conference call, please visit RMP's website at www.ricemidstream.com.

A replay of the conference call will be available following the call for two weeks and can be accessed from www.ricemidstream.com.

About Rice Midstream Partners

Rice Midstream Partners LP is a fee-based, growth-oriented limited partnership formed by Rice Energy Inc. (NYSE: RICE) to own, operate, develop and acquire midstream assets in the Appalachian basin. RMP provides midstream services to Rice Energy and third-party companies through its natural gas gathering and compression assets in the rapidly developing dry gas core of the Marcellus Shale in southwestern Pennsylvania.

For more information, please visit www.ricemidstream.com.

Forward Looking Statements

This release includes forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than historical facts included in this release, that address activities, events or developments that we expect or anticipate will or may occur in the future, including such things as, forecasted gathering volumes, revenues, Adjusted EBITDA, distribution growth, and distributable cash flow, the timing of completion of midstream projects, future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strengths, goals, expansion and growth of our business and operations, plans, market conditions, references to future success, references to intentions as to future matters and other such matters are forward-looking statements. All forward-looking statements speak only as of the date of this release. Although we believe 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.

We caution you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the exploration for and development, production, gathering and sale of natural gas and oil. These risks include, but are not limited to: commodity price volatility; inflation; lack of availability of drilling and production equipment and services; environmental risks; drilling and other operating risks; regulatory changes; the uncertainty inherent in estimating natural gas reserves and in projecting future rates of production, cash flow and access to capital; and the timing of development expenditures. Information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our Forms 10-K, 10-Q and 8-K. Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements and there can be no assurances that the actual results or developments anticipated by us will be realized, or even if realized, that they will have the expected consequences to or effects on us, our business or operations. We have no intention, and disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

Supplemental Non-GAAP Financial Measures
(Unaudited)

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as securities analysts, investors and lenders. We define Adjusted EBITDA as net income (loss) before interest expense, income tax benefit, depreciation and amortization, stock compensation expense and incentive unit expense. Adjusted EBITDA is not a measure of net income as determined by GAAP.

Distributable cash flow is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as securities analysts, investors and lenders. We define distributable cash flow as Adjusted EBITDA, plus interest income, less cash interest expense, estimated maintenance capital expenditures and income taxes. Distributable cash flow does not reflect changes in working capital balances and is not a presentation made in accordance with GAAP.

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SOURCE Rice Midstream Partners LP

Related Links

http://www.ricemidstream.com