HOUSTON, May 10, 2019 /PRNewswire/ -- American
Midstream Partners, LP (NYSE: AMID) ("American Midstream" or the
"Partnership") today reported financial and operational results for
the three months ended March 31,
2019. Net loss attributable to the Partnership was
$13.2 million for the three months
ended March 31, 2019 compared to
$13.9 million for 2018.
Adjusted EBITDA (1) was $54.7
million for the three months ended March 31, 2019, compared to $52.4 million for 2018. Total segment
gross margin (1) was $71.2
million for the three months ended March 31, 2019, compared to $64.7 million for 2018. The increases in
adjusted EBITDA and total segment gross margin were driven largely
by increased throughput on Delta House, reduction in operating
expenses resulting from decreases in the use of third-party
services and reductions in corporate expenses, due to a decrease in
acquisition activity compared to the prior period and general
corporate cost reduction as the Partnership prepares for the
completion of the pending merger and operating as a privately held
company.
SEGMENT PERFORMANCE
|
Segment Gross
Margin
|
|
(In
thousands)
|
|
Three months
ended
March 31,
|
|
2019
|
|
2018
|
|
|
|
|
Offshore Pipelines
and Services
|
$ 38,770
|
|
$ 25,317
|
Gas Gathering and
Processing Services
|
14,876
|
|
12,209
|
Liquid Pipelines and
Services
|
8,104
|
|
9,154
|
Natural Gas
Transportation Services
|
9,428
|
|
10,687
|
Terminalling
Services
|
-
|
|
7,289
|
Total Segment Gross
Margin
|
$ 71,178
|
|
$ 64,656
|
|
(1)
Adjusted EBITDA and Total Segment Gross Margin are Non-GAAP
supplemental financial measures. Please read "Non-GAAP
Financial Measures" in this press release.
|
PENDING MERGER
All customary conditions to the closing of the merger of the
Partnership and an affiliate of ArcLight have been satisfied, with
the exception of the expiration of the waiting period following
filing of a definitive information statement with the United States
Securities and Exchange Commission ("SEC"). The Partnership expects
the merger to close by the outside date under the merger agreement
of July 31, 2019.
As previously announced, the Partnership will not make any cash
distributions on its common units or preferred units prior to the
closing of the merger.
Upon closing of the merger, the Partnership will be a wholly
owned subsidiary of an affiliate of ArcLight and the common units
will cease to be publicly traded.
As a result of the pending merger, the Partnership will not hold
a conference call in connection with the issuance of this earnings
release.
CAPITAL MANAGEMENT
As of March 31, 2019, the Partnership had approximately
$1.0 billion of total debt
outstanding, comprising $534 million
outstanding under its revolving credit facility, $425 million in outstanding 8.50% senior
unsecured notes and $87 million in
outstanding non-recourse senior secured notes. The Partnership had
a consolidated total leverage ratio of approximately 5.8 times at
March 31, 2019.
For the three months ended March 31, 2019, capital
expenditures totaled approximately $19
million, including approximately $7
million of maintenance capital expenditures.
Non-GAAP Financial Measures
This press release and the accompanying tables include
supplemental non-GAAP financial measures, including "Adjusted
EBITDA," "Total Segment Gross Margin" and "Operating
Margin." For definitions and required reconciliations of
supplemental non-GAAP financial measures to the nearest comparable
GAAP financial measures, please read "Note About Non-GAAP Financial
Measures" set forth in a later section of this press release.
About American Midstream Partners, LP
American Midstream Partners, LP is a limited partnership formed
to provide critical midstream infrastructure that links producers
of natural gas, crude oil, NGLs and condensate to end-use markets.
American Midstream's assets are strategically located in some of
the most prolific offshore and onshore basins in the Permian, Eagle
Ford, East Texas, Bakken and Gulf
Coast. American Midstream owns or has an ownership interest in
approximately 5,100 miles of interstate and intrastate pipelines,
as well as gas processing plants, fractionation facilities, an
offshore semisubmersible floating production system with nameplate
processing capacity of 90 MBbl/d of crude oil and 220 MMcf/d of
natural gas, and terminal sites with approximately 3.0 MMBbls of
storage capacity.
For more information about American Midstream Partners, LP,
visit: www.americanmidstream.com. The content of our website is not
part of this release.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act of 1934, as amended. We have used the words
"could," "expect," "intend," "may," "will," "would," and similar
terms and phrases to identify forward-looking statements in this
press release. Although we believe the assumptions upon which these
forward-looking statements are based are reasonable, any of these
assumptions could prove to be inaccurate and the forward-looking
statements based on these assumptions could be incorrect. Many of
the factors that will determine these results are beyond our
ability to control or predict. These factors include actions by
ArcLight, lenders, regulatory agencies, and other third parties,
changes in market conditions, and information described in our
public disclosure and filings with the SEC, including the risk
factors and other information that will be included in our Annual
Report on Form 10-K for the year ended December 31, 2018 and our Quarterly Report on
From 10-Q for the quarter ended March 31,
2019. All future written and oral forward-looking
statements attributable to us or persons acting on our behalf are
expressly qualified in their entirety by the previous statements.
The forward-looking statements herein speak as of the date of this
press release. We undertake no obligation to update such statements
for any reason, except as required by law.
Investor Contact
American Midstream Partners, LP
Mark Schuck
Director of Investor Relations
(346) 241-3497
ir@americanmidstream.com
American Midstream
Partners, LP and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(Unaudited, in
thousands)
|
|
|
March
31, 2019
|
|
December
31, 2018
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
12,273
|
|
|
$
|
9,069
|
|
Restricted
cash
|
33,558
|
|
|
30,868
|
|
Accounts receivable,
net of allowance for doubtful accounts of $511 and $591 as of March
31, 2019 and December 31, 2018, respectively
|
87,355
|
|
|
76,632
|
|
Inventory
|
8,924
|
|
|
1,186
|
|
Other current
assets
|
21,728
|
|
|
26,236
|
|
Total current
assets
|
163,838
|
|
|
143,991
|
|
Property, plant and
equipment, net
|
995,755
|
|
|
997,708
|
|
Goodwill
|
51,723
|
|
|
51,723
|
|
Restricted cash -
long term
|
5,281
|
|
|
5,083
|
|
Intangible assets,
net
|
131,447
|
|
|
133,992
|
|
Investment in
unconsolidated affiliates
|
321,760
|
|
|
337,796
|
|
Other assets,
net
|
45,933
|
|
|
17,403
|
|
Total assets
|
$
|
1,715,737
|
|
|
$
|
1,687,696
|
|
Liabilities,
Equity and Partners' Capital
|
|
|
|
|
|
|
|
Total current
liabilities (1)
|
$
|
664,817
|
|
|
$
|
649,892
|
|
Asset retirement
obligations
|
68,338
|
|
|
67,451
|
|
Other long-term
liabilities
|
41,876
|
|
|
18,491
|
|
Long-term
debt
|
501,836
|
|
|
500,739
|
|
Deferred tax
liability
|
1,421
|
|
|
1,421
|
|
Total
liabilities
|
1,278,288
|
|
|
1,237,994
|
|
Convertible preferred
units
|
331,964
|
|
|
324,624
|
|
Total Equity and
partners' capital
|
105,485
|
|
|
125,078
|
|
Total liabilities,
equity and partners' capital
|
$
|
1,715,737
|
|
|
$
|
1,687,696
|
|
_________________________
|
(1)
Total current liabilities include $534.3 million and $514.8 million
for March 31, 2019 and December 31, 2018, respectively, outstanding
under the Partnership's revolving credit facility, which matures in
September 2019.
|
American Midstream
Partners, LP and Subsidiaries
|
Condensed
Consolidated Statements of Operations
|
(Unaudited, in
thousands, except for per unit amounts)
|
|
|
|
Three months ended
March 31,
|
|
|
2019
|
|
2018
|
Revenues
|
|
$
|
172,830
|
|
|
$
|
205,829
|
|
Operating
expenses:
|
|
|
|
|
Cost of
sales
|
|
128,061
|
|
|
150,166
|
|
Direct operating
expenses
|
|
17,978
|
|
|
23,446
|
|
Corporate
expenses
|
|
19,401
|
|
|
22,692
|
|
Depreciation,
amortization and accretion
|
|
21,180
|
|
|
21,997
|
|
Loss (gain) on sale of
assets, net
|
|
55
|
|
|
(95)
|
|
Impairment of
long-lived assets
|
|
829
|
|
|
—
|
|
Total operating
expenses
|
|
187,504
|
|
|
218,206
|
|
Operating
loss
|
|
(14,674)
|
|
|
(12,377)
|
|
Other income
(expense), net:
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
(24,363)
|
|
|
(13,876)
|
|
Other income,
net
|
|
8
|
|
|
22
|
|
Earnings in
unconsolidated affiliates
|
|
26,110
|
|
|
12,673
|
|
Loss before income
taxes
|
|
(12,919)
|
|
|
(13,558)
|
|
Income tax
expense
|
|
(218)
|
|
|
(280)
|
|
Net loss
|
|
(13,137)
|
|
|
(13,838)
|
|
Net income
attributable to noncontrolling interests
|
|
(77)
|
|
|
(45)
|
|
Net loss attributable
to the Partnership
|
|
$
|
(13,214)
|
|
|
$
|
(13,883)
|
|
|
|
|
|
|
Limited Partners' net
loss per common unit:
|
|
|
|
|
Basic and
diluted:
|
|
|
|
|
Net loss per common
unit
|
|
$
|
(0.38)
|
|
|
$
|
(0.42)
|
|
|
|
|
|
|
Weighted average
number of common units outstanding
|
|
|
|
|
Basic and
diluted
|
|
54,082
|
|
|
52,769
|
|
American Midstream
Partners, LP and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited, in
thousands)
|
|
|
Three months ended
March 31,
|
|
2019
|
|
2018
|
Net cash (used in)
provided by operating activities
|
$
|
(4,240)
|
|
|
$
|
14,847
|
|
|
|
|
|
Net cash used in
investing activities
|
(6,481)
|
|
|
(15,744)
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
16,813
|
|
|
(1,774)
|
|
|
|
|
|
Net decrease in Cash,
Cash equivalents, and Restricted cash
|
6,092
|
|
|
(2,671)
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
Beginning of
period
|
45,020
|
|
|
34,179
|
|
End of
period
|
$
|
51,112
|
|
|
$
|
31,508
|
|
American Midstream
Partners, LP and Subsidiaries
|
Reconciliation of
Net income (loss) attributable to the Partnership to
|
Adjusted EBITDA
and Distributable Cash Flow
|
(Unaudited, in
thousands)
|
|
|
Three months ended
March 31,
|
|
2019
|
|
2018
|
Reconciliation of
Net loss Attributable to the Partnership to Adjusted
EBITDA:
|
|
|
|
Net loss
attributable to the Partnership
|
$
|
(13,214)
|
|
|
$
|
(13,883)
|
|
Depreciation,
amortization and accretion
|
21,180
|
|
|
21,997
|
|
Interest expense, net
of capitalized interest
|
24,363
|
|
|
13,876
|
|
Amortization of
deferred financing costs
|
(2,549)
|
|
|
(1,316)
|
|
Debt issuance costs
paid
|
61
|
|
|
1,085
|
|
Unrealized loss
(gain) on commodity derivatives, net
|
254
|
|
|
59
|
|
Non-cash equity
compensation expense
|
1,026
|
|
|
1,014
|
|
Transaction
expenses
|
6,370
|
|
|
8,877
|
|
Impairment of
long-lived assets
|
829
|
|
|
—
|
|
Income tax
expense
|
218
|
|
|
280
|
|
Distributions from
unconsolidated affiliates
|
42,146
|
|
|
23,853
|
|
General Partner
contribution
|
—
|
|
|
9,417
|
|
Earnings in
unconsolidated affiliates
|
(26,110)
|
|
|
(12,673)
|
|
Other
|
46
|
|
|
(90)
|
|
Other post-employment
benefits plan net periodic benefit
|
(19)
|
|
|
15
|
|
(Gain) loss on sale
of assets, net
|
55
|
|
|
(95)
|
|
Adjusted EBITDA
|
$
|
54,656
|
|
|
$
|
52,416
|
|
American Midstream
Partners, LP and Subsidiaries
|
Reconciliation of
Total Gross Margin to Net loss attributable to the
Partnership
|
(Unaudited, in
thousands)
|
|
|
Three months ended
March 31,
|
Reconciliation of
Total Segment Gross Margin and Operating Margin to Net Loss
Attributable to the Partnership:
|
2019
|
|
2018
|
Total Segment
Gross Margin
|
$
|
71,178
|
|
|
$
|
64,656
|
|
Direct operating
expenses
|
(17,978)
|
|
|
(19,799)
|
|
Operating
margin
|
53,200
|
|
|
44,857
|
|
|
|
|
|
Gain (loss) on
commodity derivatives, net
|
(1,521)
|
|
|
60
|
|
Corporate
expenses
|
(19,401)
|
|
|
(22,692)
|
|
Depreciation,
amortization and accretion expense
|
(21,180)
|
|
|
(21,997)
|
|
Gain (loss) on sale
of assets, net
|
(55)
|
|
|
95
|
|
Impairment of
long-lived assets
|
(829)
|
|
|
—
|
|
Interest expense, net
of capitalized interest
|
(24,363)
|
|
|
(13,876)
|
|
Other income,
net
|
1,230
|
|
|
(5)
|
|
Income tax
expense
|
(218)
|
|
|
(280)
|
|
Net income
attributable to noncontrolling interest
|
(77)
|
|
|
(45)
|
|
Net loss
attributable to the Partnership
|
$
|
(13,214)
|
|
|
$
|
(13,883)
|
|
American Midstream
Partners, LP and Subsidiaries
|
Segment Financial
and Operating Data
|
(Unaudited, in
thousands, except for operating and pricing data)
|
|
|
|
Three months
ended
March 31,
|
|
|
2019
|
|
2018
|
Segment Financial
and Operating Data:
|
|
|
|
|
|
|
|
|
|
Offshore
Pipelines and Services Segment
|
|
|
|
|
Financial
data:
|
|
|
|
|
Segment gross
margin
|
|
$
|
38,770
|
|
|
$
|
25,317
|
|
Direct operating
expenses
|
|
5,939
|
|
|
7,795
|
|
Segment operating
margin
|
|
$
|
32,831
|
|
|
$
|
17,522
|
|
|
|
|
|
|
Distributions:
|
|
|
|
|
Destin/Okeanos
|
|
$
|
15,373
|
|
|
$
|
15,113
|
|
Delta House
|
|
21,817
|
|
|
6,524
|
|
Total
|
|
$
|
37,190
|
|
|
$
|
21,637
|
|
|
|
|
|
|
Operating
data:
|
|
|
|
|
Average throughput
(MMcfe/d)
|
|
617.5
|
|
|
498.6
|
|
Average Destin/Okeanos
throughput (MMcf/d)
|
|
828.6
|
|
|
982.8
|
|
Average Delta House
throughput (MBoe/d)
|
|
102.9
|
|
|
57.8
|
|
|
|
|
|
|
Gas Gathering and
Processing Services Segment
|
|
|
|
|
Financial
data:
|
|
|
|
|
Segment gross
margin
|
|
$
|
14,876
|
|
|
$
|
12,209
|
|
Direct operating
expenses
|
|
6,349
|
|
|
7,170
|
|
Segment
operating margin
|
|
$
|
8,527
|
|
|
$
|
5,039
|
|
Operating
data:
|
|
|
|
|
Average throughput
(MMcf/d)
|
|
200.9
|
|
|
160.5
|
|
|
|
|
|
|
Liquid Pipelines
& Services
|
|
|
|
|
Financial
data:
|
|
|
|
|
Segment gross
margin
|
|
$
|
8,104
|
|
|
$
|
9,154
|
|
Direct operating
expenses
|
|
2,978
|
|
|
3,161
|
|
Segment operating
margin
|
|
$
|
5,126
|
|
|
$
|
5,993
|
|
|
|
|
|
|
Distributions:
|
|
|
|
|
Distributions from
unconsolidated affiliates
|
|
$
|
4,956
|
|
|
$
|
2,217
|
|
|
|
|
|
|
Operating
data:
|
|
|
|
|
Average unconsolidated
affiliate throughput (MBbls/d)
|
|
127.4
|
|
|
104.4
|
|
Average other liquid
pipelines throughput (MBbls/d)
|
|
71.0
|
|
|
73.9
|
|
|
|
|
|
|
Natural Gas
Transportation Services Segment
|
|
|
|
|
Financial
data:
|
|
|
|
|
Segment gross
margin
|
|
$
|
9,428
|
|
|
$
|
10,687
|
|
Direct operating
expenses
|
|
2,712
|
|
|
1,673
|
|
Segment operating
margin
|
|
$
|
6,716
|
|
|
$
|
9,014
|
|
Operating
data:
|
|
|
|
|
Average throughput
(MMcf/d)
|
|
640.3
|
|
|
810.1
|
|
|
|
|
|
|
Terminalling
Services Segment
|
|
|
|
|
Financial
data:
|
|
|
|
|
Segment
revenue
|
|
$
|
—
|
|
|
$
|
15,959
|
|
Cost of
sales
|
|
—
|
|
|
5,023
|
|
Direct operating
expenses
|
|
—
|
|
|
3,647
|
|
Segment operating
margin
|
|
$
|
—
|
|
|
$
|
7,289
|
|
Note About Non-GAAP Financial Measures
Total segment gross margin, operating margin, Adjusted EBITDA
and distributable cash flow are performance measures that are
non-GAAP financial measures. Each has important limitations as an
analytical tool because they exclude some, but not all, items that
affect the most directly comparable GAAP financial measures.
Management compensates for the limitations of these non-GAAP
measures as analytical tools by reviewing the comparable GAAP
measures, understanding the differences between the measures and
incorporating these data points into management's decision-making
process.
You should not consider total segment gross margin, operating
margin or Adjusted EBITDA in isolation or as a substitute for, or
more meaningful than analysis of, our results as reported under
GAAP. Total segment gross margin, operating margin and Adjusted
EBITDA may be defined differently by other companies in our
industry. Our definitions of these non-GAAP financial measures may
not be comparable to similarly titled measures of other companies,
thereby diminishing their utility.
Adjusted EBITDA is a supplemental non-GAAP financial measure
used by our management and external users of our financial
statements, such as investors, commercial banks, research analysts
and others, to assess: the financial performance of our assets
without regard to financing methods, capital structure or
historical cost basis; the ability of our assets to generate cash
flow to make cash distributions to our equity holders; our
operating performance and return on capital as compared to those of
other companies in the midstream energy sector, without regard to
financing or capital structure; and the attractiveness of capital
projects and acquisitions and the overall rates of return on
alternative investment opportunities.
We define Adjusted EBITDA as net income (loss) attributable to
the Partnership, plus depreciation, amortization and accretion
expense ("DAA") excluding non-controlling interest share of
DAA, interest expense, net of capitalized interest excluding , debt
issuance costs paid during the period, unrealized gains
(losses) on commodity derivatives, non-cash charges such as
non-cash equity compensation expense, charges that are unusual such
as transaction expenses primarily associated with our acquisitions,
income tax expense, distributions from unconsolidated affiliates
and General Partner's contribution, less earnings in unconsolidated
affiliates, discontinued operations, gains (losses) that are
unusual, such as gain on revaluation of equity interest and gain
(loss) on sale of assets, net, and other non-recurring items that
impact our business, such as construction and operating management
agreement income ("COMA") and other post-employment benefits plan
net periodic benefit. The GAAP measure most directly
comparable to our performance measure Adjusted EBITDA is Net income
(loss) attributable to the Partnership.
Segment gross margin and total segment gross margin are metrics
that we use to evaluate our performance. These metrics are
useful for understanding our operating performance because it
measures the operating results of our segments before DD&A and
certain expenses that are generally not controllable by our
business segment development managers, such as certain operating
costs, general and administrative expenses, interest expense and
income taxes. Operating margin is useful for similar reasons
except that it also includes all direct operating expenses in
order to assess the performance of our operating managers.
We define segment gross margin in our Gas Gathering and
Processing Services segment as total revenue plus unconsolidated
affiliate earnings less unrealized gains or plus unrealized losses
on commodity derivatives, construction and operating management
agreement income and the cost of natural gas, and NGLs and
condensate purchased.
We define segment gross margin in our Liquid Pipelines and
Services segment as total revenue plus unconsolidated affiliate
earnings less unrealized gains or plus unrealized losses on
commodity derivatives and the cost of crude oil purchased in
connection with fixed-margin arrangements. Substantially all of our
gross margin in this segment is fee-based or fixed-margin, with
little to no direct commodity price risk.
We define segment gross margin in our Natural Gas Transportation
Services segment as total revenue plus unconsolidated affiliate
earnings less the cost of natural gas purchased in connection with
fixed-margin arrangements. Substantially all of our gross margin in
this segment is fee-based or fixed-margin, with little to no direct
commodity price risk.
We define segment gross margin in our Offshore Pipelines and
Services segment as total revenue plus unconsolidated affiliate
earnings less the cost of natural gas purchased in connection with
fixed-margin arrangements. Substantially all of our gross
margin in this segment is fee-based or fixed-margin, with little to
no direct commodity price risk.
We define segment gross margin in our Terminalling Services
segment as total revenue less cost of sales and direct operating
expense which includes direct labor, general materials and supplies
and direct overhead.
Total segment gross margin is a supplemental non-GAAP financial
measure that we use to evaluate our performance. We define total
segment gross margin as the sum of the segment gross margins for
our Gas Gathering and Processing Services, Liquid Pipelines and
Services, Natural Gas Transportation Services, Offshore Pipelines
and Services and Terminalling Services segments. The GAAP measure
most directly comparable to total segment gross margin is Net
Income (Loss) attributable to the Partnership.
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SOURCE American Midstream Partners, LP