Attached files
| file | filename |
|---|---|
| 8-K - ACCESS MIDSTREAM PARTNERS LP 8-K 10-29-2013 - WILLIAMS PARTNERS L.P. | form8-k.htm |
|
News Release
|
 |
FOR IMMEDIATE RELEASE
OCTOBER 29, 2013
ACCESS MIDSTREAM PARTNERS, L.P. REPORTS FINANCIAL
RESULTS FOR THE 2013 THIRD QUARTER
Partnership Reports 2013 Third Quarter Adjusted EBITDA of $227 Million, Distributable Cash Flow of $171 Million and Net Income of $78 Million
Partnership Increases Quarterly Distribution to $0.535 per Unit
OKLAHOMA CITY, OKLAHOMA, OCTOBER 29, 2013 – Access Midstream Partners, L.P. (NYSE:ACMP) today announced financial results for the 2013 third quarter. The Partnership’s adjusted EBITDA for the 2013 third quarter totaled $227.0 million, an increase of $107.5 million, or 90.0%, from 2012 third quarter adjusted EBITDA of $119.5 million. Net income attributable to the Partnership totaled $78.2 million in the 2013 third quarter, an increase of $28.0 million, or 55.8%, from 2012 third quarter net income of $50.2 million. Distributable cash flow (DCF) for the 2013 third quarter totaled $171.5 million, an increase of $85.2 million, or 98.7%, from 2012 third quarter DCF of $86.3 million and resulted in a distribution coverage ratio of 1.51. Financial terms are defined on pages two through four of this release.
Throughput for the 2013 third quarter totaled 349.2 billion cubic feet (bcf) of natural gas, or 3.80 bcf per day, an increase of 34.3% from 2012 third quarter throughput of 2.83 bcf per day. The increase was driven primarily by throughput from the Eagle Ford and Haynesville assets acquired in December 2012, as well as an increase in Marcellus throughput. The Partnership’s revenues for the 2013 third quarter totaled $260.9 million, an increase of $104.8 million, or 67.1%, compared to 2012 third quarter revenues of $156.1 million. Revenues in both periods exclude revenues attributable to the Partnership’s equity investments as those revenues are accounted for as part of the Partnership’s investments in unconsolidated affiliates. If the Partnership’s proportional share of revenue from equity investments was included, revenue for the 2013 third quarter would have totaled $327.5 million, an increase of $136.3 million, or 71.3%, compared to the 2012 third quarter.
Capital expenditures during the 2013 third quarter totaled $398.9 million, including maintenance capital expenditures of $27.5 million. These capital expenditures included $180.3 million for the Partnership’s share of capital expenditures in entities accounted for as equity investments. Capital expenditures during the nine months ended September 30, 2013 totaled $1,232.9 million, including maintenance capital expenditures of $82.5 million. These capital expenditures included $536.0 million for the Partnership’s share of capital expenditures in entities accounted for as equity investments.
Partnership Increases Cash Distribution
On October 25, 2013, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.535 per unit for the 2013 third quarter, an increase of $0.10, or 23.0%, per unit over the 2012 third quarter distribution and an increase of $0.05, or 10.3%, per unit over the 2013 second quarter distribution. The distribution will be paid on November 14, 2013 to unitholders of record at the close of business on November 7, 2013. DCF of $171.5 million for the 2013 third quarter provided distribution coverage of 1.51 times the amount required for the Partnership to fund the distribution to the limited partners and the general partner.
|
INVESTOR CONTACT:
|
MEDIA CONTACTS:
|
ACCESS MIDSTREAM
|
|
|
Dave Shiels, CFO
(405) 727-1740
dave.shiels@accessmidstream.com
|
Debbie Nauser
(405) 727-1612
debbie.nauser@accessmidstream.com
|
Tom Johnson
(212) 371-5999
tbj@abmac.com
|
525 Central Park Drive
Oklahoma City, OK 73105
|
Management Comments
J. Mike Stice, Access Midstream Partners’ Chief Executive Officer, commented, “I could not be more pleased with our execution this quarter. From our on-time delivery of gathering, processing and fractionation facilities in the Utica region by Access and its partners, to the record dry gas volumes in the Marcellus North, our execution of these world-class facilities and assets has been extraordinary. We have delivered another quarter of strong financial results consistent with our best-in-class fixed fee business model. As a result of continued outstanding operational and financial performance, the Board has elected to step-up the distribution this quarter by five cents per unit, returning strong, predictable cash flow back to our investors. From this new baseline, the Partnership expects to grow limited partner distributions at a sustained 15% rate consistent with previous guidance.”
Senior Notes Offering
On August 14, 2013, the Partnership closed the offering of $400 million of additional 5.875% senior notes due 2021. The notes were issued at a price of 101.5% of the principal amount. The notes form a single series with the Partnership’s existing 5.875% senior notes due 2021, which were initially issued on April 19, 2011. The Partnership received net proceeds of $400.8 million from the senior notes offering, which were used for general partnership purposes, including funding working capital, repayment of indebtedness and funding the Partnership’s capital expenditure program.
Conference Call Information
A conference call to discuss this release of financial results has been scheduled for Wednesday, October 30, 2013 at 9:00 a.m. EDT. The telephone number to access the conference call is 719-325-2338 or toll-free 800-946-0713. The passcode for the call is 2116952. We encourage those who would like to participate in the call to dial the access number between 8:50 and 9:00 a.m. EDT. For those unable to participate in the conference call, a replay will be available for audio playback from 12:00 p.m. EDT on October 30, 2013 through 12:00 p.m. EDT on November 13, 2013. The number to access the conference call replay is 719-457-0820 or toll-free 888-203-1112. The passcode for the replay is 2116952. The conference call will also be webcast live on the Internet and can be accessed by going to the Partnership’s website at www.accessmidstream.com in the "Events" subsection of the "Investors" section of the website. An archive of the conference call webcast will also be available on the website.
Use of Non-GAAP Financial Measures
This press release and accompanying schedules include the non-GAAP financial measures of adjusted EBITDA and DCF. The accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered as an alternative to GAAP measures such as net income, net cash provided by operating activities or any other measure of liquidity or financial performance calculated and presented in accordance with GAAP. Investors should not consider adjusted EBITDA, DCF or adjusted DCF in isolation or as a substitute for analysis of the Partnership’s results as reported under GAAP. Because these non-GAAP financial measures may be defined differently by other companies in our industry, the Partnership’s definition of adjusted EBITDA, DCF and adjusted DCF may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
2
Adjusted EBITDA. The Partnership agreement defines adjusted EBITDA as net income (loss) before income tax expense, interest expense, depreciation and amortization expense and certain other items management believes affect the comparability of operating results. Adjusted EBITDA is a non-GAAP financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
| · | The Partnership’s operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to capital structure, historical cost basis or financing methods; |
| · | The Partnership’s ability to incur and service debt and fund capital expenditures; |
| · | The ability of the Partnership’s assets to generate sufficient cash flow to make distributions to unitholders; and |
| · | The viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. |
Management believes it is appropriate to exclude certain items from EBITDA because management believes these items affect the comparability of operating results. The Partnership believes that the presentation of adjusted EBITDA in this press release provides information useful to investors in assessing its financial condition and results of operations. The GAAP measure most directly comparable to adjusted EBITDA is net income.
Distributable Cash Flow. The Partnership agreement defines DCF as adjusted EBITDA attributable to the Partnership adjusted for:
| · | Addition of interest income; |
| · | Subtraction of net cash paid for interest expense; |
| · | Subtraction of maintenance capital expenditures; and |
| · | Subtraction of income taxes. |
Management compares the DCF the Partnership generates to the cash distributions it expects to pay its partners. Using this metric, management computes a distribution coverage ratio. DCF is an important non-GAAP financial measure for our limited partners since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flows at a level that can sustain or support an increase in its quarterly cash distributions. DCF is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is in part measured by its yield, which is based on the amount of cash distributions a partnership can pay to a unitholder. The GAAP measure most directly comparable to DCF is net cash provided by operating activities.
3
Access Midstream Partners, L.P. (NYSE:ACMP) is the industry’s largest gathering and processing master limited partnership as measured by throughput volume. The Partnership owns, operates, develops and acquires natural gas gathering and processing systems and other midstream energy assets. Headquartered in Oklahoma City, the Partnership's operations are focused on the Barnett, Eagle Ford, Haynesville, Marcellus, Niobrara and Utica Shales and Mid-Continent region of the U.S. The Partnership’s common units are listed on the New York Stock Exchange under the symbol ACMP. Further information is available at www.accessmidstream.com where the Partnership routinely posts announcements, updates, events, investor information and presentations and all recent press releases.
This press release includes forward-looking statements. Forward-looking statements give our current expectations or forecasts of future events. They include but are not limited to our business strategy and plans and objectives for future operations. We caution you not to place undue reliance on our forward-looking statements, which speak only as of the date of this release, and we undertake no obligations to update this information. Although we believe the expectations and forecasts reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to be correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Factors that could cause actual results to differ materially from expected results are described under “Risk Factors” in our 2012 Annual Report on Form 10-K and our other SEC filings.
4
Access Midstream Partners, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except per unit data)
(unaudited)
|
|
Three Months Ended
September 30,
|
|||||||
|
|
2013
|
2012
|
||||||
|
Revenues(1)
|
$
|
260,943
|
$
|
156,092
|
||||
|
|
||||||||
|
Operating Expenses
|
||||||||
|
Operating expenses
|
83,533
|
49,805
|
||||||
|
Depreciation and amortization expense
|
77,086
|
41,163
|
||||||
|
General and administrative expense
|
24,470
|
15,283
|
||||||
|
Other operating income
|
(239
|
)
|
(628
|
)
|
||||
|
|
||||||||
|
Total operating expenses
|
184,850
|
105,623
|
||||||
|
|
||||||||
|
Operating income
|
76,093
|
50,469
|
||||||
|
|
||||||||
|
Other income (expense)
|
||||||||
|
Income from unconsolidated affiliates
|
32,835
|
15,724
|
||||||
|
(28,600
|
)
|
(15,219
|
)
|
|||||
|
236
|
115
|
|||||||
|
|
||||||||
|
Income before income tax expense
|
80,564
|
51,089
|
||||||
|
Income tax expense
|
1,353
|
861
|
||||||
|
|
||||||||
|
Net income
|
79,211
|
50,228
|
||||||
|
Net income attributable to noncontrolling interests
|
994
|
—
|
||||||
|
|
||||||||
|
Net income attributable to Access Midstream Partners, L.P.
|
$
|
78,217
|
$
|
50,228
|
||||
|
|
||||||||
|
Limited partner interest in net income
|
||||||||
|
Net income attributable to Access Midstream Partners, L.P.
|
$
|
78,217
|
$
|
50,228
|
||||
|
Less general partner interest in net income
|
(12,591
|
)
|
(2,364
|
)
|
||||
|
|
||||||||
|
Limited partner interest in net income
|
$
|
65,626
|
$
|
47,864
|
||||
|
|
||||||||
|
Net income per limited partner unit – basic and diluted
|
||||||||
|
Common units
|
$
|
0.22
|
$
|
0.32
|
||||
|
Subordinated units
|
$
|
0.33
|
$
|
0.32
|
||||
|
|
||||||||
|
Weighted average limited partner units outstanding used for net income per unit calculation – basic and diluted (in thousands)
|
||||||||
|
Common units
|
144,248
|
79,434
|
||||||
|
Subordinated units
|
33,787
|
69,076
|
||||||
| (1) | Excludes revenues from equity investments of $66.5 million and $35.2 million for the three months ended September 30, 2013 and 2012, respectively that is included in Income from Unconsolidated Affiliates. |
If either Chesapeake Energy Corporation (“Chesapeake”) or Total E&P USA, Inc. (“Total”) does not meet its minimum volume commitment to the Partnership in the Barnett Shale region or Chesapeake does not meet its minimum volume commitment in the Haynesville Shale region under the relevant gas gathering agreement for specified annual periods, Chesapeake or Total is obligated to pay the Partnership a fee equal to the applicable fee for each mcf by which the applicable party’s minimum volume commitment for the year exceeds the actual volumes gathered on the Partnership’s systems. Should payments be due under the minimum volume commitment with respect to any year, the Partnership recognizes the associated revenue in the fourth quarter of that year.
5
Access Midstream Partners, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except per unit data)
(unaudited)
|
|
Nine Months Ended
September 30,
|
|||||||
|
|
2013
|
2012
|
||||||
|
Revenues(1)
|
$
|
745,144
|
$
|
460,098
|
||||
|
|
||||||||
|
Operating Expenses
|
||||||||
|
Operating expenses
|
249,140
|
143,218
|
||||||
|
Depreciation and amortization expense
|
215,605
|
120,323
|
||||||
|
General and administrative expense
|
73,293
|
38,326
|
||||||
|
Other operating (income) expense
|
1,744
|
(433
|
)
|
|||||
|
|
||||||||
|
Total operating expenses
|
539,782
|
301,434
|
||||||
|
|
||||||||
|
Operating income
|
205,362
|
158,664
|
||||||
|
|
||||||||
|
Other income (expense)
|
||||||||
|
Income from unconsolidated affiliates
|
91,588
|
44,682
|
||||||
|
Interest expense
|
(83,394
|
)
|
(46,813
|
)
|
||||
|
Other income
|
631
|
174
|
||||||
|
|
||||||||
|
Income before income tax expense
|
214,187
|
156,707
|
||||||
|
Income tax expense
|
3,853
|
2,507
|
||||||
|
|
||||||||
|
Net income
|
210,334
|
154,200
|
||||||
|
Net income attributable to noncontrolling interests
|
3,366
|
—
|
||||||
|
|
||||||||
|
Net income attributable to Access Midstream Partners, L.P.
|
$
|
206,968
|
$
|
154,200
|
||||
|
|
||||||||
|
Limited partner interest in net income
|
||||||||
|
Net income attributable to Access Midstream Partners, L.P.
|
$
|
206,968
|
$
|
154,200
|
||||
|
Less general partner interest in net income
|
(23,378
|
)
|
(5,545
|
)
|
||||
|
|
||||||||
|
Limited partner interest in net income
|
$
|
183,590
|
$
|
148,655
|
||||
|
|
||||||||
|
Net income per limited partner unit – basic and diluted
|
||||||||
|
Common units
|
$
|
0.54
|
$
|
1.00
|
||||
|
Subordinated units
|
$
|
0.93
|
$
|
1.00
|
||||
|
|
||||||||
|
Weighted average limited partner units outstanding used for net income per unit calculation – basic and diluted (in thousands)
|
||||||||
|
Common units
|
117,282
|
79,330
|
||||||
|
Subordinated units
|
57,184
|
69,076
|
||||||
| (1) | Excludes revenues from equity investments of $173.0 million and $98.5 million for the nine months ended September 30, 2013 and 2012, respectively that is included in Income from Unconsolidated Affiliates. |
If either Chesapeake Energy Corporation (“Chesapeake”) or Total E&P USA, Inc. (“Total”) does not meet its minimum volume commitment to the Partnership in the Barnett Shale region or Chesapeake does not meet its minimum volume commitment in the Haynesville Shale region under the relevant gas gathering agreement for specified annual periods, Chesapeake or Total is obligated to pay the Partnership a fee equal to the applicable fee for each mcf by which the applicable party’s minimum volume commitment for the year exceeds the actual volumes gathered on the Partnership’s systems. Should payments be due under the minimum volume commitment with respect to any year, the Partnership recognizes the associated revenue in the fourth quarter of that year.
6
Access Midstream Partners, L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands)
(unaudited)
|
|
As of
September 30,
2013
|
As of
December 31,
2012
|
||||||
|
Assets
|
||||||||
|
|
||||||||
|
Total current assets
|
$
|
204,691
|
$
|
219,766
|
||||
|
|
||||||||
|
Property, plant and equipment
|
||||||||
|
Gathering systems
|
5,745,115
|
5,125,746
|
||||||
|
Other fixed assets
|
139,468
|
96,916
|
||||||
|
Less: Accumulated depreciation
|
(785,354
|
)
|
(590,614
|
)
|
||||
|
|
||||||||
|
Total property, plant and equipment, net
|
5,099,229
|
4,632,048
|
||||||
|
|
||||||||
|
Investment in unconsolidated affiliates
|
1,827,448
|
1,297,811
|
||||||
|
379,258
|
355,217
|
|||||||
|
Deferred loan costs, net
|
61,466
|
56,258
|
||||||
|
|
||||||||
|
Total assets
|
$
|
7,572,092
|
$
|
6,561,100
|
||||
|
|
||||||||
|
Liabilities and Partners’ Capital
|
||||||||
|
|
||||||||
|
Total current liabilities
|
$
|
302,374
|
$
|
259,261
|
||||
|
|
||||||||
|
Long-term liabilities
|
||||||||
|
Long-term debt
|
3,010,693
|
2,500,000
|
||||||
|
Other liabilities
|
7,853
|
5,333
|
||||||
|
|
||||||||
|
Total long-term liabilities
|
3,018,546
|
2,505,333
|
||||||
|
|
||||||||
|
Total partners’ capital
|
4,251,172
|
3,796,506
|
||||||
|
|
||||||||
|
Total liabilities and partners’ capital
|
$
|
7,572,092
|
$
|
6,561,100
|
||||
7
Access Midstream Partners, L.P.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
($ in thousands)
(unaudited)
|
|
Nine Months Ended
September 30,
|
|||||||
|
|
2013
|
2012
|
||||||
|
Cash flows from operating activities
|
||||||||
|
Net income
|
$
|
210,334
|
$
|
154,200
|
||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
215,605
|
120,323
|
||||||
|
Income from unconsolidated affiliates
|
(91,588
|
)
|
(44,682
|
)
|
||||
|
8,781
|
5,661
|
|||||||
|
Distribution of earnings received from unconsolidated affiliates
|
4,737
|
—
|
||||||
|
Changes in assets and liabilities
|
||||||||
|
(Increase) decrease in accounts receivable
|
(42,218
|
)
|
12,547
|
|||||
|
(Increase) decrease in other assets
|
1,721
|
(15,289
|
)
|
|||||
|
Decrease in accounts payable
|
(12,595
|
)
|
(6,579
|
)
|
||||
|
Increase in accrued liabilities
|
63,229
|
16,492
|
||||||
|
|
||||||||
|
Net cash provided by operating activities
|
358,006
|
242,673
|
||||||
|
|
||||||||
|
Cash flows from investing activities
|
||||||||
|
Additions to property, plant and equipment
|
(811,111
|
)
|
(231,632
|
)
|
||||
|
Investments in unconsolidated affiliates
|
(425,298
|
)
|
(139,216
|
)
|
||||
|
Proceeds from sale of assets
|
72,408
|
9,316
|
||||||
|
|
||||||||
|
Net cash used in investing activities
|
(1,164,001
|
)
|
(361,532
|
)
|
||||
|
|
||||||||
|
Cash flows from financing activities
|
||||||||
|
Proceeds from long-term borrowings
|
1,445,500
|
847,500
|
||||||
|
Payments on long-term borrowings
|
(1,340,700
|
)
|
(1,285,900
|
)
|
||||
|
Proceeds from issuance of common units
|
399,812
|
—
|
||||||
|
Proceeds from issuance of senior notes
|
414,094
|
750,000
|
||||||
|
Distribution to unitholders
|
(275,199
|
)
|
(184,639
|
)
|
||||
|
Capital contribution from noncontrolling interests
|
120,594
|
—
|
||||||
|
Debt issuance costs
|
(11,735
|
)
|
(13,824
|
)
|
||||
|
Other adjustments
|
8,598
|
5,720
|
||||||
|
|
||||||||
|
Net cash provided by financing activities
|
760,964
|
118,857
|
||||||
|
|
||||||||
|
Net decrease in cash and cash equivalents
|
(45,031
|
)
|
(2
|
)
|
||||
|
|
||||||||
|
Cash and cash equivalents
|
||||||||
|
Beginning of period
|
64,994
|
22
|
||||||
|
|
||||||||
|
End of period
|
$
|
19,963
|
$
|
20
|
||||
8
Access Midstream Partners, L.P.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in thousands)
(unaudited)
|
|
Three Months Ended
September 30,
|
|||||||
|
|
2013
|
2012
|
||||||
|
Net Income attributable to Access Midstream Partners, L.P.
|
$
|
78,217
|
$
|
50,228
|
||||
|
|
||||||||
|
Adjusted for:
|
||||||||
|
Interest expense
|
28,600
|
15,219
|
||||||
|
Income tax expense
|
1,353
|
861
|
||||||
|
Depreciation and amortization expense
|
77,086
|
41,163
|
||||||
|
(1,257
|
)
|
(628
|
)
|
|||||
|
Income from unconsolidated affiliates
|
(32,835
|
)
|
(15,724
|
)
|
||||
|
EBITDA from unconsolidated affiliates(1) (2)
|
52,452
|
28,403
|
||||||
|
Expense for non-cash equity awards
|
5,847
|
—
|
||||||
|
Implied minimum volume commitment
|
17,500
|
—
|
||||||
|
|
||||||||
|
Adjusted EBITDA
|
$
|
226,963
|
$
|
119,522
|
||||
|
|
||||||||
|
Adjusted for:
|
||||||||
|
Maintenance capital expenditures
|
(27,500
|
)
|
(18,500
|
)
|
||||
|
Cash portion of interest expense
|
(26,645
|
)
|
(13,868
|
)
|
||||
|
Income tax expense
|
(1,353
|
)
|
(861
|
)
|
||||
|
|
||||||||
|
Distributable cash flow
|
$
|
171,465
|
$
|
86,293
|
||||
|
|
||||||||
|
|
||||||||
|
Cash provided by operating activities
|
$
|
140,426
|
$
|
106,275
|
||||
|
|
||||||||
|
Adjusted for:
|
||||||||
|
Change in assets and liabilities
|
(10,122
|
)
|
(28,656
|
)
|
||||
|
Distribution of earnings received from unconsolidated affiliates
|
(4,737
|
)
|
—
|
|||||
|
Interest expense
|
28,600
|
15,219
|
||||||
|
Income tax expense
|
1,353
|
861
|
||||||
|
Other non-cash items
|
(4,356
|
)
|
(2,580
|
)
|
||||
|
EBITDA from unconsolidated affiliates(1) (2)
|
52,452
|
28,403
|
||||||
|
Expense for non-cash equity awards
|
5,847
|
—
|
||||||
|
Implied minimum volume commitment
|
17,500
|
—
|
||||||
|
|
||||||||
|
Adjusted EBITDA
|
$
|
226,963
|
$
|
119,522
|
||||
|
|
||||||||
|
Adjusted for:
|
||||||||
|
Maintenance capital expenditures
|
(27,500
|
)
|
(18,500
|
)
|
||||
|
Cash portion of interest expense
|
(26,645
|
)
|
(13,868
|
)
|
||||
|
Income tax expense
|
(1,353
|
)
|
(861
|
)
|
||||
|
|
||||||||
|
Distributable cash flow
|
$
|
171,465
|
$
|
86,293
|
||||
|
|
||||||||
|
|
||||||||
|
Cash distribution
|
||||||||
|
Limited partner units
2013: ($0.535 x 188,047,721 units) 2012: ($0.435 x 147,998,610 units) |
$
|
100,606
|
$
|
64,380
|
||||
|
General partner interest
|
13,304
|
2,701
|
||||||
|
|
||||||||
|
Total cash distribution
|
$
|
113,910
|
$
|
67,081
|
||||
|
|
||||||||
|
Distribution coverage ratio
|
1.51
|
1.29
|
||||||
| (1) | EBITDA from unconsolidated affiliates is calculated as follows: |
|
Net Income
|
$
|
32,835
|
$
|
15,724
|
||||
|
|
||||||||
|
Adjusted for:
|
||||||||
|
Depreciation and amortization expense
|
19,624
|
12,742
|
||||||
|
Other
|
(7
|
)
|
(63
|
)
|
||||
|
|
||||||||
|
EBITDA from unconsolidated affiliates
|
$
|
52,452
|
$
|
28,403
|
| (2) | The Partnership maintains equity investments in 10 gathering systems in the Marcellus Shale, Utica East Ohio Midstream, LLC. and Ranch Westex JV, LLC. |
9
Access Midstream Partners, L.P.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in thousands)
(unaudited)
|
|
Nine Months Ended
September 30,
|
|||||||
|
|
2013
|
2012
|
||||||
|
Net Income attributable to Access Midstream Partners, L.P.
|
$
|
206,968
|
$
|
154,200
|
||||
|
|
||||||||
|
Adjusted for:
|
||||||||
|
Interest expense
|
83,394
|
46,813
|
||||||
|
Income tax expense
|
3,853
|
2,507
|
||||||
|
Depreciation and amortization expense
|
215,605
|
120,323
|
||||||
|
Other
|
(1,577
|
)
|
(433
|
)
|
||||
|
Income from unconsolidated affiliates
|
(91,588
|
)
|
(44,682
|
)
|
||||
|
EBITDA from unconsolidated affiliates(1) (2)
|
141,662
|
80,121
|
||||||
|
Expense for non-cash equity awards
|
22,170
|
—
|
||||||
|
Implied minimum volume commitment
|
37,500
|
—
|
||||||
|
|
||||||||
|
Adjusted EBITDA
|
$
|
617,987
|
$
|
358,849
|
||||
|
|
||||||||
|
Adjusted for:
|
||||||||
|
Maintenance capital expenditures
|
(82,500
|
)
|
(55,500
|
)
|
||||
|
Cash portion of interest expense
|
(76,852
|
)
|
(42,835
|
)
|
||||
|
Income tax expense
|
(3,853
|
)
|
(2,507
|
)
|
||||
|
|
||||||||
|
Distributable cash flow
|
$
|
454,782
|
$
|
258,007
|
||||
|
|
||||||||
|
|
||||||||
|
Cash provided by operating activities
|
$
|
358,006
|
$
|
242,673
|
||||
|
|
||||||||
|
Adjusted for:
|
||||||||
|
Change in assets and liabilities
|
(10,137
|
)
|
(7,171
|
)
|
||||
|
Distribution of earnings received from unconsolidated affiliates
|
(4,737
|
)
|
—
|
|||||
|
Interest expense
|
83,394
|
46,813
|
||||||
|
Income tax expense
|
3,853
|
2,507
|
||||||
|
Other non-cash items
|
(13,724
|
)
|
(6,094
|
)
|
||||
|
EBITDA from unconsolidated affiliates(1) (2)
|
141,662
|
80,121
|
||||||
|
Expense for non-cash equity awards
|
22,170
|
—
|
||||||
|
Implied minimum volume commitment
|
37,500
|
—
|
||||||
|
|
||||||||
|
Adjusted EBITDA
|
$
|
617,987
|
$
|
358,849
|
||||
|
|
||||||||
|
Adjusted for:
|
||||||||
|
Maintenance capital expenditures
|
(82,500
|
)
|
(55,500
|
)
|
||||
|
Cash portion of interest expense
|
(76,852
|
)
|
(42,835
|
)
|
||||
|
Income tax expense
|
(3,853
|
)
|
(2,507
|
)
|
||||
|
|
||||||||
|
Distributable cash flow
|
$
|
454,782
|
$
|
258,007
|
||||
|
(1)
|
EBITDA from unconsolidated affiliates is calculated as follows:
|
|
Net Income
|
$
|
91,588
|
$
|
44,682
|
||||
|
|
||||||||
|
Adjusted for:
|
||||||||
|
Depreciation and amortization expense
|
50,097
|
35,530
|
||||||
|
Other
|
(23
|
)
|
(91
|
)
|
||||
|
|
||||||||
|
EBITDA from unconsolidated affiliates
|
$
|
141,662
|
$
|
80,121
|
|
(2)
|
The Partnership maintains equity investments in 10 gathering systems in the Marcellus Shale, Utica East Ohio Midstream, LLC. and Ranch Westex JV, LLC.
|
10
Access Midstream Partners, L.P.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in thousands)
(unaudited)
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
($ in thousands)
|
||||||||||||||||
|
GAAP capital expenditures
|
$
|
265,517
|
$
|
90,711
|
$
|
811,111
|
$
|
231,632
|
||||||||
|
Adjusted for:
|
||||||||||||||||
|
Capital expenditures included in unconsolidated affiliates
|
180,286
|
115,536
|
535,964
|
290,717
|
||||||||||||
|
Capital expenditures attributable to noncontrolling interest
|
(46,862
|
)
|
—
|
(114,208
|
)
|
—
|
||||||||||
|
Net capital expenditures
|
$
|
398,941
|
$
|
206,247
|
$
|
1,232,867
|
$
|
522,349
|
||||||||
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
($ in thousands)
|
||||||||||||||||
|
Revenues
|
$
|
260,943
|
$
|
156,092
|
$
|
745,144
|
$
|
460,098
|
||||||||
|
Adjusted for:
|
||||||||||||||||
|
Revenues included in investments in unconsolidated affiliates
|
66,525
|
35,112
|
173,035
|
98,457
|
||||||||||||
|
Total revenues including revenues from equity investments
|
$
|
327,468
|
$
|
191,204
|
$
|
918,179
|
$
|
558,555
|
||||||||
11
Access Midstream Partners, L.P.
OPERATING STATISTICS
(unaudited)
|
|
Three Months Ended
September 30,
|
|||||||
|
|
2013
|
2012
|
||||||
|
Barnett Shale
|
||||||||
|
Operating income
|
45,806
|
54,790
|
||||||
|
Income from unconsolidated affiliates
|
—
|
—
|
||||||
|
Capital expenditures(1)
|
11,337
|
21,619
|
||||||
|
1.064
|
1.236
|
|||||||
|
Approximate miles of pipe at end of period
|
858
|
845
|
||||||
|
Gas compression (horsepower) at end of period
|
154,495
|
161,115
|
||||||
|
|
||||||||
|
Eagle Ford Shale
|
||||||||
|
Operating income
|
46,405
|
—
|
||||||
|
Income from unconsolidated affiliates
|
—
|
—
|
||||||
|
Capital expenditures(1)
|
80,794
|
—
|
||||||
|
Throughput, bcf per day
|
0.295
|
—
|
||||||
|
Approximate miles of pipe at end of period
|
804
|
—
|
||||||
|
Gas compression (horsepower) at end of period
|
77,672
|
—
|
||||||
|
|
||||||||
|
Haynesville Shale
|
||||||||
|
Operating income
|
(2,251
|
)
|
3,990
|
|||||
|
Income from unconsolidated affiliates
|
—
|
—
|
||||||
|
Capital expenditures(1)
|
2,947
|
5,625
|
||||||
|
Throughput, bcf per day
|
0.632
|
0.325
|
||||||
|
Approximate miles of pipe at end of period
|
581
|
263
|
||||||
|
Gas compression (horsepower) at end of period
|
20,195
|
23,745
|
||||||
|
|
||||||||
|
Marcellus Shale
|
||||||||
|
Operating income
|
434
|
—
|
||||||
|
Income from unconsolidated affiliates
|
33,925
|
15,724
|
||||||
|
Capital expenditures(1)
|
75,310
|
115,536
|
||||||
|
Throughput, bcf per day(2)
|
1.065
|
0.691
|
||||||
|
Approximate miles of pipe at end of period
|
1,389
|
458
|
||||||
|
Gas compression (horsepower) at end of period
|
99,905
|
50,950
|
||||||
|
|
||||||||
|
Niobrara Shale
|
||||||||
|
Operating income
|
(478
|
)
|
—
|
|||||
|
Income from unconsolidated affiliates
|
—
|
—
|
||||||
|
Capital expenditures(1)
|
10,419
|
—
|
||||||
|
Throughput, bcf per day(2)
|
0.016
|
—
|
||||||
|
Approximate miles of pipe at end of period
|
123
|
—
|
||||||
|
Gas compression (horsepower) at end of period
|
15,665
|
—
|
||||||
|
|
||||||||
|
Utica Shale
|
||||||||
|
Operating income
|
8,435
|
—
|
||||||
|
Income from unconsolidated affiliates
|
(1,453
|
)
|
—
|
|||||
|
Capital expenditures(1)
|
169,317
|
—
|
||||||
|
Throughput, bcf per day(2)
|
0.140
|
—
|
||||||
|
Approximate miles of pipe at end of period
|
220
|
—
|
||||||
|
Gas compression (horsepower) at end of period
|
57,730
|
—
|
||||||
|
|
||||||||
|
Mid-Continent
|
||||||||
|
Operating income
|
12,880
|
12,842
|
||||||
|
Income from unconsolidated affiliates
|
363
|
—
|
||||||
|
Capital expenditures(1)
|
21,838
|
58,352
|
||||||
|
Throughput, bcf per day
|
0.584
|
0.573
|
||||||
|
Approximate miles of pipe at end of period
|
2,791
|
2,589
|
||||||
|
Gas compression (horsepower) at end of period
|
108,410
|
99,394
|
||||||
|
|
||||||||
|
Corporate
|
||||||||
|
Operating income
|
(35,138
|
)
|
(21,153
|
)
|
||||
|
Capital expenditures(1)
|
26,979
|
5,115
|
||||||
|
|
||||||||
|
Total
|
||||||||
|
Operating income
|
76,093
|
50,469
|
||||||
|
Income from unconsolidated affiliates
|
32,835
|
15,724
|
||||||
|
Capital expenditures(1)
|
398,941
|
206,247
|
||||||
|
Throughput, bcf per day(2)
|
3.796
|
2.825
|
||||||
|
Approximate miles of pipe at end of period
|
6,766
|
4,155
|
||||||
|
Gas compression (horsepower) at end of period
|
534,072
|
335,204
|
||||||
| (1) | Includes capital expenditures accounted for as part of the Partnership’s equity investments and excludes capital expenditures attributable to noncontrolling interests. See page 11 of this release for required reconciliation to GAAP capital expenditures. |
| (2) | Throughput in all regions represents the net throughput allocated to the Partnership’s interest. |
12
Access Midstream Partners, L.P.
OPERATING STATISTICS
(unaudited)
|
|
Nine Months Ended
September 30,
|
|||||||
|
|
2013
|
2012
|
||||||
|
Barnett Shale
|
||||||||
|
Operating income
|
133,457
|
161,844
|
||||||
|
Income from unconsolidated affiliates
|
—
|
—
|
||||||
|
Capital expenditures(1)
|
45,736
|
80,613
|
||||||
|
Throughput, bcf per day
|
1.051
|
1.259
|
||||||
|
Approximate miles of pipe at end of period
|
858
|
845
|
||||||
|
Gas compression (horsepower) at end of period
|
154,495
|
161,115
|
||||||
|
|
||||||||
|
Eagle Ford Shale
|
||||||||
|
Operating income
|
119,316
|
—
|
||||||
|
Income from unconsolidated affiliates
|
—
|
—
|
||||||
|
Capital expenditures(1)
|
246,153
|
—
|
||||||
|
Throughput, bcf per day
|
0.260
|
—
|
||||||
|
Approximate miles of pipe at end of period
|
804
|
—
|
||||||
|
Gas compression (horsepower) at end of period
|
77,672
|
—
|
||||||
|
|
||||||||
|
Haynesville Shale
|
||||||||
|
Operating income
|
2,663
|
15,948
|
||||||
|
Income from unconsolidated affiliates
|
—
|
—
|
||||||
|
Capital expenditures(1)
|
13,509
|
17,481
|
||||||
|
Throughput, bcf per day
|
0.698
|
0.363
|
||||||
|
Approximate miles of pipe at end of period
|
581
|
263
|
||||||
|
Gas compression (horsepower) at end of period
|
20,195
|
23,745
|
||||||
|
|
||||||||
|
Marcellus Shale
|
||||||||
|
Operating income
|
5,219
|
—
|
||||||
|
Income from unconsolidated affiliates
|
93,663
|
44,682
|
||||||
|
Capital expenditures(1)
|
244,686
|
290,717
|
||||||
|
Throughput, bcf per day(2)
|
0.976
|
0.648
|
||||||
|
Approximate miles of pipe at end of period
|
1,389
|
458
|
||||||
|
Gas compression (horsepower) at end of period
|
99,905
|
50,950
|
||||||
|
|
||||||||
|
Niobrara Shale
|
||||||||
|
Operating income
|
(1,110
|
)
|
—
|
|||||
|
Income from unconsolidated affiliates
|
—
|
—
|
||||||
|
Capital expenditures(1)
|
22,018
|
—
|
||||||
|
Throughput, bcf per day(2)
|
0.012
|
—
|
||||||
|
Approximate miles of pipe at end of period
|
123
|
—
|
||||||
|
Gas compression (horsepower) at end of period
|
15,665
|
—
|
||||||
|
|
||||||||
|
Utica Shale
|
||||||||
|
Operating income
|
12,889
|
—
|
||||||
|
Income from unconsolidated affiliates
|
(2,543
|
)
|
—
|
|||||
|
Capital expenditures(1)
|
457,291
|
—
|
||||||
|
Throughput, bcf per day(2)
|
0.090
|
—
|
||||||
|
Approximate miles of pipe at end of period
|
220
|
—
|
||||||
|
Gas compression (horsepower) at end of period
|
57,730
|
—
|
||||||
|
|
||||||||
|
Mid-Continent
|
||||||||
|
Operating income
|
46,614
|
38,549
|
||||||
|
Income from unconsolidated affiliates
|
468
|
—
|
||||||
|
Capital expenditures(1)
|
92,516
|
113,048
|
||||||
|
Throughput, bcf per day
|
0.584
|
0.562
|
||||||
|
Approximate miles of pipe at end of period
|
2,791
|
2,589
|
||||||
|
Gas compression (horsepower) at end of period
|
108,410
|
99,394
|
||||||
|
|
||||||||
|
Corporate
|
||||||||
|
Operating income
|
(113,686
|
)
|
(57,677
|
)
|
||||
|
Capital expenditures(1)
|
110,958
|
20,490
|
||||||
|
|
||||||||
|
Total
|
||||||||
|
Operating income
|
205,362
|
158,664
|
||||||
|
Income from unconsolidated affiliates
|
91,588
|
44,682
|
||||||
|
Capital expenditures(1)
|
1,232,867
|
522,349
|
||||||
|
Throughput, bcf per day(2)
|
3.671
|
2.832
|
||||||
|
Approximate miles of pipe at end of period
|
6,766
|
4,155
|
||||||
|
Gas compression (horsepower) at end of period
|
534,072
|
335,204
|
||||||
| (1) | Includes capital expenditures accounted for as part of the Partnership’s equity investments and excludes capital expenditures attributable to noncontrolling interests. See page 11 of this release for required reconciliation to GAAP capital expenditures. |
| (2) | Throughput in all regions represents the net throughput allocated to the Partnership’s interest. |
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