Press Release Details

October 28, 2015

Antero Midstream Partners LP Announces Third Quarter 2015 Results

DENVER, Oct. 28, 2015 /PRNewswire/ -- Antero Midstream Partners LP (NYSE: AM) ("Antero Midstream" or the "Partnership") today released its third quarter 2015 financial and operating results.  The relevant financial statements are included in Antero Midstream's Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, which has been filed with the Securities and Exchange Commission.

Antero Midstream Partners, LP Logo

Highlights for the Third Quarter of 2015:

  • Adjusted EBITDA of $55.4 million, a 194% increase compared to the prior year quarter
  • Distributable cash flow of $50.1 million resulting in DCF coverage of 1.38x
  • Increased quarterly cash distribution to $0.205 per unit ($0.82/unit annualized), an 8% increase compared to the second quarter 2015 distribution and 21% increase over the minimum quarterly distribution
  • Low pressure gathering volumes averaged 1,038 MMcf/d, a 95% increase compared to the prior year quarter and a 8% increase sequentially
  • High pressure gathering volumes averaged 1,216 MMcf/d, a 129% increase compared to the prior year quarter and a 2% increase sequentially
  • Compression volumes averaged 435 MMcf/d, a 275% increase compared to the prior year quarter and a 4% decrease sequentially
  • Completed $1.05 billion acquisition of water business from Antero Resources
  • Strong liquidity position of $1.0 billion

Recent Developments

Distribution for the Third Quarter of 2015

The Board of Directors of Antero Resources Midstream Management LLC, the general partner of the Partnership, declared a cash distribution of $0.205 per unit ($0.82 per unit annualized) for the third quarter of 2015.  The distribution represents an 8% increase quarter-over-quarter and the Partnership's third consecutive quarterly distribution increase since its initial public offering in November 2014.  The distribution will be payable on November 30, 2015 to unitholders of record as of November 11, 2015.

Water Business Acquisition Closed

On September 24, 2015, the Partnership announced the completion of the $1.05 billion water business acquisition from Antero Resources Corporation ("Antero Resources").  In connection with the transaction, the Partnership paid Antero Resources $552 million in cash and issued 23,886,421 common units.  The net proceeds of $242 million from the Partnership's private placement of 12,898,000 common units were also paid to Antero Resources and the 23,886,421 of common units initially issued to Antero Resources were reduced by the 12,898,000 common units issued in the private placement, reducing the common units issued to Antero Resources to 10,998,421.

Third Quarter 2015 Financial Results

The following reflects results for Antero Midstream for the three and nine months ended September 30, 2015, and predecessor results for the three and nine months ended September 30, 2014. In addition, Antero Midstream's recent 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 condensed 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 will report its results through two business segments, Gathering and Compression and Water Handling.  To facilitate comparison and discussion for third quarter 2015 distributable cash flow the results below are only for the Gathering and Compression segment operations.  For a reconciliation of net income to Adjusted EBITDA and distributable cash flow, please read "Non-GAAP Financial Measures."  For operating results associated with the Water Handling segment and its contribution to the recast condensed combined consolidated financial statements contained in Antero Midstream's Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, please read "Non-GAAP Financial Measures."

Low pressure gathering volumes for the third quarter of 2015 averaged 1,038 MMcf/d, a 95% increase from the third quarter of 2014 and an 8% increase from the second quarter of 2015.  High pressure gathering volumes for the third quarter of 2015 averaged 1,216 MMcf/d, a 129% increase from the third quarter of 2014 and a 2% increase from the second quarter of 2015.  Compression volumes for the third quarter of 2015 averaged 435 MMcf/d, a 275% increase from the third quarter of 2014 and a 4% decrease from the second quarter of 2015.  Condensate gathering volumes averaged 2,856 Bbl/d during the quarter, a 143% increase from the third quarter of 2014 and in line with the second quarter of 2015.  Volumetric growth was driven by production growth from Antero Resources.



Three months ended

September 30,




Nine months ended

September 30,



Average Daily Throughput:


2014


2015


% Change


2014


2015


% Change

Low pressure gathering (MMcf/d)


531


1,038


95%


417


980


135%

High pressure gathering (MMcf/d)


531


1,216


129%


309


1,183


283%

Compression (MMcf/d)


116


435


275%


65


416


540%

Condensate gathering (Bbl/d)


1,174


2,856


143%


1,374


2,751


100%














Gathering and Compression revenue for the third quarter of 2015 was $59.3 million as compared to $26.3 million for the prior year quarter, driven primarily by increased throughput volumes across Antero Midstream's systems.  Gathering and Compression direct operating expenses were a $3.2 million credit, driven by an $8.4 million reduction in the estimated property tax liability accrued for in prior periods and a slight decrease in other operating expenses during the quarter.  Gathering and Compression general and administrative expenses totaled $11.3 million, including $4.2 million of non-cash equity-based compensation.  Total cash and non-cash operating expenses were $23.2 million, including $15.1 million of depreciation.

Adjusted EBITDA of $55.4 million for the third quarter of 2015 was 194% higher than the prior year quarter, due to increased throughput and associated revenue.  Gathering and Compression cash interest expense was $1.0 million and maintenance capital expenditures totaled $4.2 million, resulting in distributable cash flow ("DCF") of $50.1 million.

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


Three months ended


Nine months ended


September 30,


September 30,



2014


2015


2014


2015

Net income


$

34,290


$

42,648


$

71,977


$

110,097


Add:














  Interest expense



2,455



2,044



4,121



5,266


Less:














Pre-water acquisition net income attributed to parent



(29,211)



(7,841)



(66,859)



(40,193)


Pre-water acquisition interest expense attributed to parent



(522)



(770)



(988)



(2,326)


Pre-water acquisition operating income attributed to parent



(29,733)



(8,611)



(67,847)



(42,519)


Operating income - attributable to partnership


$

7,012


$

36,081


$

8,251


$

72,844














Add:













Depreciation expense - attributable to Partnership



10,227



15,076



24,991



44,748

Equity-based compensation expense - attributable to Partnership



1,562



4,205



 

5,365



 

14,218

Adjusted EBITDA


$

18,801


$

55,362


$

38,607


$

131,810

Less:













Cash interest paid - attributable to Partnership






(1,038)






(2,215)

Maintenance capital expenditures






(4,214)






(10,001)

Distributable cash flow





$

50,110





$

119,594














Total distributions declared





$

36,333





$

92,529














DCF coverage ratio






1.38x






1.29x
















Financial Guidance

As previously disclosed, Antero Midstream expects to generate Adjusted EBITDA of $180 million to $190 million and distributable cash flow of $160 million to $170 million during the year ending December 31, 2015, while delivering year over year distribution growth of 28% to 30%.  Financial guidance assumes contribution from the water business subsequent to the acquisition.

Antero Midstream Financial Guidance


Year Ending December 31, 2015




Adjusted EBITDA ($MM)


$180 – $190

Distributable Cash Flow ($MM)


$160 – $170

Year Over Year Distribution Growth(1)


28% – 30%

DCF Coverage Ratio


> 1.2x




Low Pressure Gathering Capital ($MM)


$90 – $95

High Pressure Gathering Capital ($MM)


$70 – $75

Compression Capital ($MM)


$165 – $170

Condensate Gathering Capital ($MM)


$5 – $5

Water Handling & Treatment Capital ($MM)


$80 – $90

Maintenance Capital ($MM)


$15 – $15

     Total Antero Midstream Capital Budget ($MM)


$425 – $450



1)

Year over year distribution growth reflects the expected distribution in the fourth quarter of 2015 vs. the minimum quarterly distribution ("MQD") of $0.17/unit (not full year 2015 distributions vs. the annualized MQD)

Third Quarter 2015 Capital Spending

During the three months ended September 30, 2015, capital expenditures associated with the Gathering and Compression segment totaled $83 million, including $55 million invested in the Marcellus and $28 million invested in the Utica.  Gathering and Compression capital expenditures were primarily related to the build-out of midstream infrastructure to support Antero Resources' development program.  Additionally, Antero Midstream invested $29 million in the acquired water delivery assets during the quarter(2)Antero Midstream expects to fund the remaining 2015 capital expenditures including those for its new Water Handling segment with borrowings under its credit facility.

Balance Sheet and Liquidity

As of September 30, 2015, Antero Midstream had $18 million of cash on its balance sheet and $525 million drawn on its $1.5 billion revolving credit facility, resulting in $1.0 billion of available liquidity.

Conference Call

Antero Midstream will hold a call on Thursday, October 29, 2015 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, November 6, 2015 at 10:00 am MT at 877-870-5176 (U.S.) or 858-384-5517 (International) using the passcode 10072157.

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, November 6, 2015 at 10:00 am MT.

2)

Capital expenditure referenced does not include water handling capital invested by Antero Resources prior to the closing date of the drop down transaction.

Presentation

An updated presentation will be posted to the Partnership's website before the October 29, 2015 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 equity-based compensation expense, less pre-acquisition income and expenses attributable to the parent.  As used in this news release, distributable cash flow means Adjusted EBITDA less cash interest paid and maintenance capital expenditures, during the period, excluding pre-acquisition amounts attributable to the parent.  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 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 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 projections to net income, operating income, or net cash flow provided by operating activities, the most comparable financial measures calculated in accordance with GAAP.

The following table represents a reconciliation of our Adjusted EBITDA and distributable cash flow to the most directly comparable GAAP financial measures for the periods presented (in thousands):
















Three months ended

September 30,


Nine months ended

 September 30,




2014


2015


2014


2015


Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow:














Net income


$

34,290


$

42,648


$

71,977


$

110,097


Add:














  Interest expense



2,455



2,044



4,121



5,266


Less:














Pre-water acquisition net income attributed to parent



(29,211)



(7,841)



(66,859)



(40,193)


Pre-water acquisition interest expense attributed to parent



(522)



(770)



(988)



(2,326)


Pre-water acquisition operating income attributed to parent



(29,733)



(8,611)



(67,847)



(42,519)


Operating income - attributable to Partnership


$

7,012


$

36,081


$

8,251


$

72,844


Add:














Depreciation expense - attributable to Partnership



10,227



15,076



24,991



44,748


Equity-based compensation expense - attributable to Partnership



1,562



4,205



5,365



14,218


Adjusted EBITDA


$

18,801


$

55,362


$

38,607


$

131,810
















Less:














Cash interest paid - attributable to Partnership






(1,038)






(2,215)


Maintenance capital expenditures attributable to Partnership






(4,214)






(10,001)


Distributable cash flow





$

50,110





$

119,594
















Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities:














Adjusted EBITDA


$

18,801


$

55,362


$

38,607


$

131,810


Add:














Pre-water acquisition net income attributed to parent



29,211



7,841



66,859



40,193


Pre-water acquisition depreciation expense attributed to parent



4,390



6,485



10,748



18,767


Pre-water acquisition equity based compensation expense attributed to parent



549



1,079



2,027



3,445


Pre-water acquisition interest expense attributed to parent



522



770



988



2,326


Amortization of deferred financing costs attributed to parent





285





774


Less:














Interest expense



(2,455)



(2,044)



(4,121)



(5,266)


Changes in operating assets and liabilities



(8,258)



(15,311)



(12,612)



7,510


Net cash provided by operating activities


$

42,760


$

54,467


$

102,496


$

199,559















Summarized financial information for the Gathering and Compression and Water Handling segments is shown for the periods indicated below:


Gathering and


Water


Consolidated


Compression


Handling


Total

Three months ended September 30, 2014









Revenues:









Revenue - affiliate

$

26,282


$

42,631


$

68,913

Revenue - third-party




2,671



2,671

Total revenues


26,282



45,302



71,584










Operating expenses:









Direct operating


3,525



9,054



12,579

General and administrative (before equity-based compensation)


3,956



1,576



5,532

Equity-based compensation


1,562



549



2,111

Depreciation


10,227



4,390



14,617

Total


19,270



15,569



34,839

Operating income

$

7,012


$

29,733


$

36,745










Three months ended September 30, 2015









Revenues:









Revenue - affiliate

$

59,220


$

21,819


$

81,039

Revenue - third-party


38



627



665

Total revenues


59,258



22,446



81,704










Operating expenses:









Direct operating


(3,164)



4,773



1,609

General and administrative (before equity-based compensation)


7,060



1,498



8,558

Equity-based compensation


4,205



1,079



5,284

Depreciation


15,076



6,485



21,561

Total


23,177



13,835



37,012

Operating income

$

36,081


$

8,611


$

44,692

 


Gathering and


Water


Consolidated


Compression


Handling


Total

Nine months ended September 30, 2014









Revenues:









Revenue - affiliate

$

54,978


$

107,907


$

162,885

Revenue - third-party




2,671



2,671

Total revenues


54,978



110,578



165,556










Operating expenses:









Direct operating


6,661



25,871



32,532

General and administrative (before equity-based compensation)


9,710



4,085



13,795

Equity-based compensation


5,365



2,027



7,392

Depreciation


24,991



10,748



35,739

Total


46,727



42,731



89,458

Operating income

$

8,251


$

67,847


$

76,098










Nine months ended September 30, 2015









Revenues:









Revenue - affiliate

$

168,056


$

86,759


$

254,815

Revenue - third-party


38



778



816

Total revenues


168,094



87,537



255,631










Operating expenses:









Direct operating


19,817



19,013



38,830

General and administrative (before equity-based compensation)


16,467



3,793



20,260

Equity-based compensation


14,218



3,445



17,663

Depreciation


44,748



18,767



63,515

Total


95,250



45,018



140,268

Operating income

$

72,844


$

42,519


$

115,363

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' production located in the Appalachian Basin 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 forecasted in such statements. 

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 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, 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, 2014 and "Item 1A. Risk Factors" in Antero Midstream's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015.

For more information, contact Michael Kennedy – VP Finance, at (303) 357-6782 or mkennedy@anteroresources.com.

 

ANTERO MIDSTREAM PARTNERS LP

Condensed Combined Consolidated Balance Sheets

December 31, 2014, and September 30, 2015

(Unaudited)

(In thousands, except unit counts)
























December 31,


September 30,



2014


2015

                                                Assets




Current assets:







Cash and cash equivalents


$

230,192


$

17,510

Accounts receivable–affiliate



31,563



42,188

Accounts receivable–third party



5,574



664

Prepaid expenses



518



62

Total current assets



267,847



60,424

Property and equipment:







Gathering and compressions systems



1,180,707



1,431,850

Water handling systems



421,012



517,518

Less accumulated depreciation



(70,124)



(134,469)

Property and equipment, net



1,531,595



1,814,899

Other assets, net



17,168



7,468

Total assets


$

1,816,610


$

1,882,791








Liabilities and Partners' Capital

Current liabilities:







Accounts payable


$

13,021


$

22,668

Accounts payable–affiliate



1,380



3,560

Accrued capital expenditures



49,974



62,679

Accrued ad valorem tax



5,862



5,924

Accrued liabilities



9,254



7,919

Other current liabilities



357



131

Total current liabilities



79,848



102,881

Long-term liabilities







Long-term debt



115,000



525,000

Contingent acquisition consideration





174,716

Other



859



514

Total liabilities



195,707



803,111

Contingencies







Partners' capital:







Common units - public (58,922,054 units issued and outstanding)



1,090,037



1,334,265

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



71,665



45,721

Subordinated units (75,940,957 units issued and outstanding)



180,757



(300,601)

General partner





295

Total partners' capital



1,342,459



1,079,680

Parent net investment



278,444



Total capital



1,620,903



1,079,680

Total liabilities and partners' capital


$

1,816,610


$

1,882,791

 

ANTERO MIDSTREAM PARTNERS LP

Three Months Ended September 30, 2014, and 2015

Condensed Combined Consolidated Statements of Operations and Comprehensive Income

 (Unaudited)

(In thousands, except unit counts and per unit amounts)













2014


2015




Revenue:







Gathering and compression–affiliate


$

26,282


$

59,220

Water handling–affiliate



42,631



21,819

Gathering and compression–third party





38

Water handling–third party



2,671



627

Total revenue



71,584



81,704

Operating expenses:







Direct operating



12,579



1,609

General and administrative (including $2,111 and $5,284 of equity-based compensation in 2014 and 2015, respectively)



7,643



13,842

Depreciation



14,617



21,561

Total operating expenses



34,839



37,012

Operating income



36,745



44,692

Interest expense



2,455



2,044

Net income and comprehensive income


$

34,290


$

42,648








Less pre-water acquisition net income attributed to parent






(7,841)

Less general partner's interest in net income






(295)

Limited partners' interest in net income





$

34,512

Net income per limited partner unit:







Basic:







Common units





$

0.23

Subordinated units





$

0.22

Diluted:







Common units





$

0.23

Subordinated units





$

0.22

Weighted average number of limited partner units outstanding:







Basic:







Common units






78,018,037

Subordinated units






75,940,957

Diluted:







Common units






78,034,156

Subordinated units






75,940,957

 

ANTERO MIDSTREAM PARTNERS LP

Condensed Combined Consolidated Statements of Operations and Comprehensive Income

Nine Months Ended September 30, 2014, and 2015

(Unaudited)

(In thousands, except unit counts and per unit amounts)




















2014


2015




Revenue:







Gathering and compression–affiliate


$

54,978


$

168,056

Water handling–affiliate



107,907



86,759

Gathering and compression–third party





38

Water handling–third party



2,671



778

Total revenue



165,556



255,631

Operating expenses:







Direct operating



32,532



38,830

General and administrative (including $7,392 and $17,663 of equity-based compensation in 2014 and 2015, respectively)



21,187



37,923

Depreciation



35,739



63,515

Total operating expenses



89,458



140,268

Operating income



76,098



115,363

Interest expense



4,121



5,266

Net income and comprehensive income


$

71,977


$

110,097








Less pre-water acquisition net income attributed to parent






(40,193)

Less general partner's interest in net income






(295)

Limited partners' interest in net income





$

69,609

Net income per limited partner unit:







Basic:







Common units





$

0.46

Subordinated units





$

0.45

Diluted:







Common units





$

0.46

Subordinated units





$

0.45

Weighted average number of limited partner units outstanding:







Basic:







Common units






76,640,925

Subordinated units






75,940,957

Diluted:







Common units






76,657,439

Subordinated units






75,940,957

 

ANTERO MIDSTREAM PARTNERS LP

Condensed Combined Consolidated Statements of Cash Flows

Nine Months Ended September 30, 2014, and 2015

(Unaudited)

(In thousands)













2014


2015

Cash flows provided by operating activities:







Net income


$

71,977


$

110,097

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







Depreciation



35,739



63,515

Equity-based compensation



7,392



17,663

Amortization of deferred financing costs





774

Changes in assets and liabilities:







Accounts receivable–affiliate



(20,715)



1,963

Accounts receivable–third party



(860)



4,910

Prepaid expenses



(16)



457

Accounts payable



1,750



673

Accounts payable–affiliate





781

Accrued ad valorem tax



3,376



62

Accrued liabilities



3,853



(1,336)

Net cash provided by operating activities



102,496



199,559

Cash flows used in investing activities:







Additions to gathering and compression systems



(428,036)



(282,826)

Additions to water handling systems



(159,097)



(53,086)

Acquired water handling assets





(28,560)

Change in working capital of affiliate related to property and equipment





40,277

Change in other assets



(6,761)



10,883

Net cash used in investing activities



(593,894)



(313,312)

Cash flows provided by (used in) financing activities:







Deemed distribution from parent, net



(5,491)



(43,723)

Water Acquisition





(633,457)

Distributions to unitholders





(70,519)

Proceeds from issuance of common units to public, net





240,972

Borrowings on credit facilities, net



500,000



410,000

Payments of deferred financing costs





(1,956)

Other



(330)



(246)

Payments of IPO related costs



(2,781)



Net cash provided by (used in) financing activities



491,398



(98,929)

Net decrease in cash and cash equivalents





(212,682)

Cash and cash equivalents, beginning of period





230,192

Cash and cash equivalents, end of period


$


$

17,510

Supplemental disclosure of cash flow information:







Cash paid during the period for interest and commitment fees


$

3,586


$

4,725

Supplemental disclosure of noncash investing activities:







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


$

76,384


$

21,962

 

The following table sets forth selected operating data for the three months ended September 30, 2014 compared to the three months ended September 30, 2015:
















Three months ended September 30,


Amount of


Percentage



2014


2015


Increase (Decrease)


Change



($ in thousands, except average realized fees)




Revenue:













Revenue - affiliate


$

68,913


$

81,039


$

12,126


18

%

Revenue - third-party



2,671



665



(2,006)


(75)

%

Total revenues



71,584



81,704



10,120


14

%

Operating expenses:













Direct operating



12,579



1,609



(10,970)


(87)

%

General and administrative (before equity-based compensation)



5,532



8,558



3,026


55

%

Equity-based compensation expense



2,111



5,284



3,173


150

%

Depreciation



14,617



21,561



6,944


48

%

Total operating expenses



34,839



37,012



2,173


6

%

Operating income



36,745



44,692



7,947


22

%

Interest expense



2,455



2,044



(411)


(17)

%

Net income


$

34,290


$

42,648


$

8,358


24

%

Adjusted EBITDA


$

53,473


$

71,537


$

18,064


34

%

Operating Data:













Gathering—low pressure (MMcf)



48,893



95,471



46,578


95

%

Gathering—high pressure (MMcf)



48,877



111,896



63,019


129

%

Compression (MMcf)



10,715



40,063



29,348


274

%

Condensate gathering (MBbl)



108



263



155


144

%

Fresh water distribution (MBbl)



12,865



6,168



(6,697)


(52)

%

Wells serviced by water distribution



53



28



(25)


(47)

%

Gathering—low pressure (MMcf/d)



531



1,038



507


95

%

Gathering—high pressure (MMcf/d)



531



1,216



685


129

%

Compression (MMcf/d)



116



435



319


275

%

Condensate gathering (MBbl/d)



1



3



2


200

%

Fresh water distribution (MBbl/d)



140



67



(73)


(52)

%

Average realized fees:













Average gathering—low pressure fee ($/Mcf)


$

0.31


$

0.31


$

0.00


2

%

Average gathering—high pressure fee - affiliate ($/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 - affiliate ($/Bbl)


$

3.56


$

3.62


$

0.06


2

%

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


$

3.00


$

4.75


$

1.75


58

%














 

The following table sets forth selected operating data for the nine months ended September 30, 2014 compared to the nine months ended September 30, 2015:






















Amount of






Nine months ended September 30,


Increase


Percentage



2014


2015


(Decrease)


Change



($ in thousands, except average realized fees)




Revenue:













Revenue - affiliate


$

162,885


$

254,815


$

91,930


56

%

Revenue - third-party



2,671



816



(1,855)


(69)

%

Total revenue



165,556



255,631



90,075


54

%

Operating expenses:













Direct operating



32,532



38,830



6,298


19

%

General and administrative (before equity-based compensation)



13,795



20,260



6,465


47

%

Equity-based compensation expense



7,392



17,663



10,271


139

%

Depreciation



35,739



63,515



27,776


78

%

Total operating expenses



89,458



140,268



50,810


57

%

Operating income



76,098



115,363



39,265


52

%

Interest expense



4,121



5,266



1,145


28

%

Net income


$

71,977


$

110,097


$

38,120


53

%

Adjusted EBITDA


$

119,229


$

196,541


$

77,312


65

%

Operating Data:













Gathering—low pressure (MMcf)



113,828



267,442



153,614


135

%

Gathering—high pressure (MMcf)



84,401



322,930



238,529


284

%

Compression (MMcf)



17,710



113,583



95,873


541

%

Condensate gathering (MBbl)



375



751



376


100

%

Fresh water distribution (MBbl)



31,201



24,034



(7,167)


(23)

%

Wells serviced by water distribution



137



89



(48)


(35)

%

Gathering—low pressure (MMcf/d)



417



980



563


135

%

Gathering—high pressure (MMcf/d)



309



1,183



874


283

%

Compression (MMcf/d)



65



416



351


540

%

Condensate gathering (MBbl/d)



1



3



2


200

%

Fresh water distribution (MBbl/d)



114



88



(26)


(23)

%

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 - affiliate ($/Bbl)


$

3.56


$

3.63


$

0.07


2

%

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


$

3.00


$

4.75


$

1.75


58

%

 

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SOURCE Antero Midstream Partners LP