American Midstream Partners, LP - FORM 8-K - EX-99.1 - EXHIBIT - March 12, 2014

Attached files

file filename
8-K - 8-K - American Midstream Partners, LPamidq413form8-k11.htm
Exhibit 99.1


American Midstream Partners, LP and Subsidiaries
Consolidated Statements of Operations
(Unaudited, in thousands, except for per unit amounts)
 
 
Three Months Ended December 31,
 
Year Ended December 31,
 
 
2013
 
2012
 
2013
 
2012
Revenue
 
$
76,014

 
$
56,420

 
$
292,626

 
$
194,843

Gain (loss) on commodity derivatives
 
94

 
243

 
28

 
3,400

Total revenue
 
76,108

 
56,663

 
292,654

 
198,243

Operating expenses:
 
 
 
 
 
 
 
 
Purchases of natural gas, NGLs and condensate
 
51,479

 
45,097

 
214,149

 
145,172

Direct operating expenses
 
8,654

 
5,248

 
29,553

 
16,798

Selling, general and administrative expenses
 
7,654

 
4,208

 
21,402

 
14,309

Equity compensation expense
 
217

 
511

 
2,094

 
1,783

Depreciation, amortization and accretion expense
 
7,728

 
5,562

 
29,999

 
21,284

Total operating expense
 
75,732

 
60,626

 
297,197

 
199,346

Gain (loss) on involuntary conversion of property, plant and equipment
 
(78
)
 
(1,021
)
 
343

 
(1,021
)
Gain on sale of assets, net
 
—

 
2

 
—

 
123

Loss on impairment of property, plant and equipment
 
(2,923
)
 
—

 
(18,155
)
 
—

Operating loss
 
(2,625
)
 
(4,982
)
 
(22,355
)
 
(2,001
)
Other expense:
 
 
 
 
 
 
 
 
Interest expense
 
(2,333
)
 
(1,487
)
 
(9,291
)
 
(4,570
)
Net loss before income tax benefit
 
(4,958
)
 
(6,469
)
 
(31,646
)
 
(6,571
)
Income tax benefit
 
(94
)
 
—

 
495

 
—

Net loss from continuing operations
 
(5,052
)
 
(6,469
)
 
(31,151
)
 
(6,571
)
Discontinued operations
 
 
 
 
 
 
 
 
(Loss) income from operations of disposal groups, net of tax
 
(489
)
 
225

 
(2,255
)
 
319

Net loss
 
(5,541
)
 
(6,244
)
 
(33,406
)
 
(6,252
)
Net income attributable to noncontrolling interests
 
100

 
7

 
633

 
256

Net loss attributable to the Partnership
 
$
(5,641
)
 
$
(6,251
)
 
$
(34,039
)
 
$
(6,508
)
 
 
 
 
 
 
 
 
 
General partner's interest in net loss
 
$
(209
)
 
$
(124
)
 
$
(1,405
)
 
$
(129
)
Limited partners’ interest in net loss
 
$
(5,432
)
 
$
(6,127
)
 
$
(32,634
)
 
$
(6,379
)
 
 
 
 
 
 
 
 
 
Limited partners' net loss per common unit:
 
 
 
Basic and diluted:
 
 
 
 
 
 
 
 
Loss from continuing operations
 
$
(1.55
)
 
$
(0.69
)
 
$
(6.76
)
 
$
(0.73
)
(Loss) income from operations of disposal groups
 
(0.07
)
 
0.02

 
(0.24
)
 
0.03

Net loss
 
$
(1.62
)
 
$
(0.67
)
 
$
(7.00
)
 
$
(0.70
)
Weighted average number of common units outstanding:
 
 
 
 
 
 
 
 
Basic and diluted
 
6,935

 
9,145

 
7,981

 
9,113





1

American Midstream Partners, LP and Subsidiaries
Reconciliation of Net (loss) income attributable to the Partnership
to Adjusted EBITDA to Distributable Cash Flow
(Unaudited, in thousands)

  
 
Three Months Ended December 31,
 
Year Ended December 31,
 
 
2013
 
2012
 
2013
 
2012
Reconciliation of Adjusted EBITDA to Net loss attributable to the Partnership
 
 
 
 
 
 
 
 
Net loss attributable to the Partnership
 
$
(5,641
)
 
$
(6,251
)
 
$
(34,039
)
 
$
(6,508
)
Add:
 
 
 
 
 
 
 
 
Depreciation, amortization and accretion expense
7,728

 
5,595

 
29,999

 
21,284

Interest expense
2,149

 
1,270

 
7,850

 
4,570

Debt issuance costs
518

 
424

 
2,113

 
1,564

Unrealized (gain) loss on derivatives, net
337

 
740

 
1,495

 
(992
)
Non-cash equity compensation expense
217

 
511

 
2,094

 
1,783

Transaction expenses
2,139

 
—

 
3,987

 
—

Impairment on property, plant and equipment
2,923

 
—

 
18,155

 
—

Loss on impairment of noncurrent assets held for sale
593

 
—

 
2,400

 
—

Deduct:
 
 
 
 
 
 
 
 
Income tax benefit
 
185

 
—

 
847

 
—

COMA income
299

 
393

 
843

 
3,373

Straight-line amortization of put costs (a)
30

 
22

 
119

 
291

OPEB plan net periodic benefit (cost)
19

 
24

 
73

 
88

Gain (loss) on involuntary conversion of property, plant and equipment
—

 
(1,021
)
 
343

 
(1,021
)
Gain (loss) on sale of assets, net
(75
)
 
2

 
(75
)
 
123

Adjusted EBITDA
 
$
10,505

 
$
2,869

 
$
31,904

 
$
18,847

Deduct:
 
 
 
 
 
 
 
 
Cash interest expense (b)
 
$
1,713

 
$
1,264

 
$
7,295

 
$
3,854

Normalized maintenance capital
 
1,196

 
1,037

 
4,685

 
3,828

Normalized integrity management (c)
 
—

 
315

 
—

 
1,007

Series A Convertible Preferred payment
 
1,321

 
—

 
3,696

 
—

Distributable Cash Flow
 
$
6,275

 
$
253

 
$
16,228

 
$
10,158


(a)
Amounts noted represent the straight-line amortization of the cost of commodity put contracts over the life of the contract.
(b)
Excludes amortization of debt issuance costs and mark-to-market adjustments related to interest rate derivatives.
(c)
Amounts noted represent average estimated integrity management costs over the seven-year mandatory testing cycle, net of integrity management costs that are expensed in direct operating expenses.  Following a recent re-evaluation of the integrity management program, management determined that integrity management expenses will continue to be expensed as incurred in direct operating expenses consistent with past practice.  However, beginning with the third quarter of 2013, integrity management expenses are no longer normalized in the calculation of distributable cash flow.





2

American Midstream Partners, LP and Subsidiaries
Segment Operating Data
(Unaudited, in thousands, except for operating and pricing data)
 
 
Three Months Ended December 31,
 
Year Ended December 31,
 
 
2013
 
2012
 
2013
 
2012
Segment Financial and Operating Data:
 
 
 
 
 
 
 
 
Gathering and Processing segment
 
 
 
 
 
 
 
 
Financial data:
 
 
 
 
 
 
 
 
Revenue
 
$
49,146

 
$
44,407

 
$
192,446

 
$
145,714

Gain (loss) on commodity derivatives, net
 
94

 
243

 
28

 
3,400

Total revenue
 
49,240

 
44,650

 
192,474

 
149,114

Purchases of natural gas, NGLs and condensate
 
41,106

 
33,880

 
156,334

 
108,656

Direct operating expenses
 
3,525

 
4,236

 
14,214

 
11,767

Other financial data:
 
 
 
 
 
 
 
 
Segment gross margin
 
$
7,955

 
$
8,072

 
$
36,464

 
$
35,393

Operating data:
 
 
 
 
 
 
 
 
Average throughput (MMcf/d)
 
298.2

 
209.7

 
277.2

 
291.2

Average plant inlet volume (MMcf/d) (a)
 
125.8

 
73.6

 
117.3

 
116.1

Average gross NGL production (Mgal/d) (a)
 
49.6

 
38.5

 
52.0

 
49.9

Average gross condensate production (Mgal/d) (a)
 
47.2

 
32.7

 
46.2

 
22.6

Average realized prices:
 
 
 
 
 
 
 
 
Natural gas ($/MMcf)
 
$
4.24

 
$
3.62

 
$
4.03

 
$
2.98

NGLs ($/gal)
 
$
1.01

 
$
0.97

 
$
0.90

 
$
1.08

Condensate ($/gal)
 
$
2.14

 
$
2.25

 
$
2.29

 
$
2.30

Transmission segment
 
 
 
 
 
 
 
 
Financial data:
 
 
 
 
 
 
 
 
Total revenue
 
$
23,361

 
$
15,413

 
$
90,377

 
$
52,529

Purchases of natural gas, NGLs and condensate
 
10,373

 
11,216

 
57,815

 
36,516

Direct operating expenses
 
4,310

 
1,012

 
13,259

 
5,031

Other financial data:
 
 
 
 
 
 
 
 
Segment gross margin
 
$
12,966

 
$
3,841

 
$
32,408

 
$
13,313

Operating data:
 
 
 
 
 
 
 
 
Average throughput (MMcf/d)
 
743.8

 
365.2

 
644.7

 
398.5

Average firm transportation - capacity reservation (MMcf/d)
 
587.6

 
736.4

 
640.7

 
703.6

Average interruptible transportation - throughput (MMcf/d)
 
497.0

 
113.3

 
389.2

 
86.6

Terminals segment (b)
 
 
 
 
 
 
 
 
Financial data:
 
 
 
 
 
 
 
 
Total revenue
 
$
3,507

 
$
—

 
$
9,831

 
$
—

Direct operating expenses
 
819

 
—

 
2,080

 
—

Other financial data:
 
 
 
 
 
 
 
 
Segment gross margin
 
$
2,688

 
$
—

 
$
7,751

 
$
—

Operating data:
 
 
 
 
 
 
 
 
Storage utilization
 
96
%
 
—

 
96
%
 
—

(a)     Excludes volumes and gross production under our elective processing arrangements.
(b)     Terminals segment amounts are for the period from April 15, 2013 to December 31, 2013.

3

Stock widget

Investing forum

American Midstream Partners, LP Reports