Delaware
|
|
001-34831
|
|
80-0534394
|
(State or other jurisdiction of incorporation or organization)
|
|
(Commission File No.)
|
|
(IRS Employer Identification No.)
|
525 Central Park Drive, Oklahoma City, Oklahoma
|
|
73105
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
(877) 413-1023
|
|
|
(Registrant’s telephone number, including area code)
|
|
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
|
|
ACCESS MIDSTREAM PARTNERS, L.P.
|
|
|
By: Access Midstream Partners GP, L.L.C.,
its general partner
|
|
|
|
|
|
|
|
By:
|
/S/ David C. Shiels
|
|
|
David C. Shiels
Chief Financial Officer
|
99.1 | Access Midstream Partners, L.P. Press Release dated April 29, 2014. |
News Release
|
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
|
· | 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. |
· | Addition of interest income; |
· | Subtraction of net cash paid for interest expense; |
· | Subtraction of maintenance capital expenditures; and |
· | Subtraction of income taxes. |
|
Three Months Ended
March 31,
|
|||||||
|
2014
|
2013
|
||||||
Revenues(1)
|
$
|
277,078
|
$
|
236,959
|
||||
|
||||||||
Operating Expenses
|
||||||||
Operating expenses
|
92,913
|
82,763
|
||||||
Depreciation and amortization expense
|
85,544
|
66,650
|
||||||
General and administrative expense
|
34,180
|
23,734
|
||||||
Other operating expense
|
1,805
|
91
|
||||||
|
||||||||
Total operating expenses
|
214,442
|
173,238
|
||||||
|
||||||||
Operating income
|
62,636
|
63,721
|
||||||
|
||||||||
Other income (expense)
|
||||||||
Income from unconsolidated affiliates
|
42,878
|
25,008
|
||||||
(38,573
|
)
|
(27,062
|
)
|
|||||
392
|
269
|
|||||||
|
||||||||
Income before income tax expense
|
67,333
|
61,936
|
||||||
Income tax expense
|
1,804
|
1,240
|
||||||
|
||||||||
Net income
|
65,529
|
60,696
|
||||||
Net income attributable to noncontrolling interests
|
4,451
|
1,158
|
||||||
|
||||||||
Net income attributable to Access Midstream Partners, L.P.
|
$
|
61,078
|
$
|
59,538
|
||||
|
||||||||
Limited partner interest in net income
|
||||||||
Net income attributable to Access Midstream Partners, L.P.
|
$
|
61,078
|
$
|
59,538
|
||||
Less general partner interest in net income
|
(19,616
|
)
|
(4,792
|
)
|
||||
|
||||||||
Limited partner interest in net income
|
$
|
41,462
|
$
|
54,746
|
||||
|
||||||||
Net income per limited partner unit – basic and diluted
|
||||||||
Common units
|
$
|
0.15
|
$
|
0.14
|
||||
Subordinated units
|
$
|
—
|
$
|
0.29
|
||||
|
||||||||
Weighted average limited partner units outstanding used for net income per unit calculation – basic and diluted (in thousands)
|
||||||||
Common units
|
184,228
|
98,421
|
||||||
Subordinated units
|
—
|
69,076
|
(1) | Excludes revenue from equity investments of $78.9 million and $47.1 million for the three months ended March 31, 2014 and 2013, respectively that is included in Income from unconsolidated affiliates. |
|
As of
March 31,
2014
|
As of
December 31,
2013
|
||||||
Assets
|
||||||||
|
||||||||
Total current assets
|
$
|
298,325
|
$
|
257,931
|
||||
|
||||||||
Property, plant and equipment
|
||||||||
Gathering systems
|
6,230,163
|
5,974,940
|
||||||
Other fixed assets
|
350,971
|
175,411
|
||||||
Less: Accumulated depreciation
|
(938,464
|
)
|
(859,551
|
)
|
||||
|
||||||||
Total property, plant and equipment, net
|
5,642,670
|
5,290,800
|
||||||
|
||||||||
Investments in unconsolidated affiliates
|
1,976,052
|
1,936,603
|
||||||
366,446
|
372,391
|
|||||||
Deferred loan costs, net
|
65,620
|
59,721
|
||||||
|
||||||||
Total assets
|
$
|
8,349,113
|
$
|
7,917,446
|
||||
|
||||||||
Liabilities and Partners’ Capital
|
||||||||
|
||||||||
Total current liabilities
|
$
|
327,709
|
$
|
306,472
|
||||
|
||||||||
Long-term liabilities
|
||||||||
Long-term debt
|
3,655,565
|
3,249,230
|
||||||
Other liabilities
|
9,583
|
8,954
|
||||||
|
||||||||
Total long-term liabilities
|
3,665,148
|
3,258,184
|
||||||
|
||||||||
Total partners’ capital
|
4,356,256
|
4,352,790
|
||||||
|
||||||||
Total liabilities and partners’ capital
|
$
|
8,349,113
|
$
|
7,917,446
|
|
Three Months Ended
March 31,
|
|||||||
|
2014
|
2013
|
||||||
Cash flows from operating activities
|
||||||||
Net income
|
$
|
65,529
|
$
|
60,696
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
85,544
|
66,650
|
||||||
Income from unconsolidated affiliates
|
(42,878
|
)
|
(25,008
|
)
|
||||
5,614
|
4,135
|
|||||||
Distribution of earnings received from unconsolidated affiliates
|
112,042
|
—
|
||||||
Changes in assets and liabilities
|
||||||||
Decrease (increase) in accounts receivable
|
48,758
|
(29,774
|
)
|
|||||
Increase in other assets
|
(12,036
|
)
|
(4,054
|
)
|
||||
Decrease in accounts payable
|
(5,806
|
)
|
(11,743
|
)
|
||||
Increase in accrued liabilities
|
13,057
|
19,228
|
||||||
|
||||||||
Net cash provided by operating activities
|
269,824
|
80,130
|
||||||
|
||||||||
Cash flows from investing activities
|
||||||||
Additions to property, plant and equipment
|
(269,631
|
)
|
(270,954
|
)
|
||||
Purchase of compression assets
|
(159,210
|
)
|
—
|
|||||
Investments in unconsolidated affiliates
|
(107,364
|
)
|
(111,808
|
)
|
||||
Proceeds from sale of assets
|
1,163
|
26,134
|
||||||
|
||||||||
Net cash used in investing activities
|
(535,042
|
)
|
(356,628
|
)
|
||||
|
||||||||
Cash flows from financing activities
|
||||||||
Proceeds from long-term borrowings
|
692,371
|
715,900
|
||||||
Payments on long-term borrowings
|
(1,035,871
|
)
|
(438,900
|
)
|
||||
Proceeds from issuance of senior notes
|
750,000
|
—
|
||||||
Proceeds from issuance of common units
|
7,548
|
—
|
||||||
Distribution to unitholders
|
(122,134
|
)
|
(84,073
|
)
|
||||
Capital contribution from noncontrolling interests
|
53,297
|
18,980
|
||||||
Payments on capital lease obligations
|
(1,005
|
)
|
—
|
|||||
Debt issuance costs
|
(8,009
|
)
|
—
|
|||||
Other
|
1,302
|
(91
|
)
|
|||||
|
||||||||
Net cash provided by financing activities
|
337,499
|
211,816
|
||||||
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
72,281
|
(64,682
|
)
|
|||||
|
||||||||
Cash and cash equivalents
|
||||||||
Beginning of period
|
17,229
|
64,994
|
||||||
|
||||||||
End of period
|
$
|
89,510
|
$
|
312
|
||||
|
|
Three Months Ended
March 31,
|
|||||||
|
2014
|
2013
|
||||||
Net Income attributable to Access Midstream Partners, L.P.
|
$
|
61,078
|
$
|
59,538
|
||||
|
||||||||
Adjusted for:
|
||||||||
Interest expense
|
38,573
|
27,062
|
||||||
Income tax expense
|
1,804
|
1,240
|
||||||
Depreciation and amortization expense
|
85,544
|
66,650
|
||||||
(781
|
)
|
(640
|
)
|
|||||
Income from unconsolidated affiliates
|
(42,878
|
)
|
(25,008
|
)
|
||||
EBITDA from unconsolidated affiliates(1) (2)
|
66,526
|
39,459
|
||||||
Expense for non-cash equity awards
|
9,814
|
7,390
|
||||||
Implied minimum volume commitment
|
30,500
|
8,750
|
||||||
|
||||||||
Adjusted EBITDA
|
$
|
250,180
|
$
|
184,441
|
||||
|
||||||||
Adjusted for:
|
||||||||
Maintenance capital expenditures
|
(32,500
|
)
|
(27,500
|
)
|
||||
Cash portion of interest expense
|
(36,624
|
)
|
(25,092
|
)
|
||||
Income tax expense
|
(1,804
|
)
|
(1,240
|
)
|
||||
|
||||||||
Distributable cash flow
|
$
|
179,252
|
$
|
130,609
|
||||
|
||||||||
|
||||||||
Cash provided by operating activities
|
$
|
269,824
|
$
|
80,130
|
||||
|
||||||||
Adjusted for:
|
||||||||
Change in assets and liabilities
|
(43,973
|
)
|
26,343
|
|||||
Distribution of earnings received from unconsolidated affiliates
|
(112,042
|
)
|
—
|
|||||
Interest expense
|
38,573
|
27,062
|
||||||
Income tax expense
|
1,804
|
1,240
|
||||||
Other non-cash items
|
(10,846
|
)
|
(5,933
|
)
|
||||
EBITDA from unconsolidated affiliates(1) (2)
|
66,526
|
39,459
|
||||||
Expense for non-cash equity awards
|
9,814
|
7,390
|
||||||
Implied minimum volume commitment
|
30,500
|
8,750
|
||||||
|
||||||||
Adjusted EBITDA
|
$
|
250,180
|
$
|
184,441
|
||||
|
||||||||
Adjusted for:
|
||||||||
Maintenance capital expenditures
|
(32,500
|
)
|
(27,500
|
)
|
||||
Cash portion of interest expense
|
(36,624
|
)
|
(25,092
|
)
|
||||
Income tax expense
|
(1,804
|
)
|
(1,240
|
)
|
||||
|
||||||||
Distributable cash flow
|
$
|
179,252
|
$
|
130,609
|
||||
|
||||||||
|
||||||||
Cash distribution
|
||||||||
Limited partner units 2014: ($0.575 x 189,562,283 units) 2013: ($0.4675 x 187,999,820 units)
|
$
|
108,998
|
$
|
87,890
|
||||
General partner interest
|
20,995
|
5,468
|
||||||
|
||||||||
Total cash distribution
|
$
|
129,993
|
$
|
93,358
|
||||
|
||||||||
Distribution coverage ratio
|
1.38
|
1.40
|
(1) | EBITDA from unconsolidated affiliates is calculated as follows: |
Net Income
|
$
|
42,878
|
$
|
25,008
|
||||
|
||||||||
Adjusted for:
|
||||||||
Depreciation and amortization expense
|
23,650
|
14,466
|
||||||
Other
|
(2
|
)
|
(15
|
)
|
||||
|
||||||||
EBITDA from unconsolidated affiliates
|
$
|
66,526
|
$
|
39,459
|
(2) | The Partnership maintains equity investments in 10 gathering systems in the Marcellus Shale, Utica East Ohio Midstream, LLC and Ranch Westex JV, LLC. |
|
Three Months Ended
March 31,
|
|||||||
|
2014
|
2013
|
||||||
GAAP Capital Expenditures
|
$
|
269,631
|
$
|
270,954
|
||||
|
||||||||
Adjusted for:
|
||||||||
Capital expenditures included in unconsolidated affiliates
|
109,390
|
165,506
|
||||||
Capital expenditures attributable to non-controlling interest
|
(46,947
|
)
|
(27,752
|
)
|
||||
|
||||||||
Net Capital Expenditures
|
$
|
332,074
|
$
|
408,708
|
|
Three Months Ended
March 31,
|
|||||||
|
2014
|
2013
|
||||||
Revenues
|
$
|
277,078
|
$
|
236,959
|
||||
|
||||||||
Adjusted for:
|
||||||||
Revenues included in investments in unconsolidated affiliates
|
78,880
|
47,147
|
||||||
|
||||||||
Total Revenues including revenues from equity investments
|
$
|
355,958
|
$
|
284,106
|
|
Three Months Ended
March 31,
|
|||||||
|
2014
|
2013
|
||||||
Barnett Shale
|
||||||||
37,296
|
45,230
|
|||||||
Income from unconsolidated affiliates
|
—
|
—
|
||||||
Capital expenditures
|
6,015
|
21,004
|
||||||
Throughput, bcf per day
|
0.973
|
1.066
|
||||||
Approximate miles of pipe at end of period
|
861
|
854
|
||||||
Gas compression (horsepower) at end of period
|
150,945
|
153,115
|
||||||
|
||||||||
Eagle Ford Shale
|
||||||||
Operating income
|
47,216
|
33,472
|
||||||
Income from unconsolidated affiliates
|
—
|
—
|
||||||
Capital expenditures
|
77,483
|
81,916
|
||||||
Throughput, bcf per day
|
0.267
|
0.228
|
||||||
Approximate miles of pipe at end of period
|
871
|
687
|
||||||
Gas compression (horsepower) at end of period
|
97,987
|
58,667
|
||||||
|
||||||||
Haynesville Shale
|
||||||||
Operating income (loss)
|
(2,940
|
)
|
2,873
|
|||||
Income from unconsolidated affiliates
|
—
|
—
|
||||||
Capital expenditures
|
3,650
|
7,785
|
||||||
Throughput, bcf per day
|
0.558
|
0.770
|
||||||
Approximate miles of pipe at end of period
|
582
|
581
|
||||||
Gas compression (horsepower) at end of period
|
20,195
|
20,195
|
||||||
|
||||||||
Marcellus Shale
|
||||||||
Operating income (loss)
|
(452
|
)
|
1,009
|
|||||
Income from unconsolidated affiliates
|
40,532
|
25,246
|
||||||
Capital expenditures(1)
|
39,654
|
93,430
|
||||||
Throughput, bcf per day(2)
|
1.205
|
0.863
|
||||||
Approximate miles of pipe at end of period
|
844
|
1,204
|
||||||
Gas compression (horsepower) at end of period
|
137,470
|
94,975
|
||||||
|
||||||||
Niobrara Shale
|
||||||||
Operating income
|
2,827
|
39
|
||||||
Income from unconsolidated affiliates
|
—
|
—
|
||||||
Capital expenditures(1)
|
14,634
|
5,763
|
||||||
Throughput, bcf per day(2)
|
0.027
|
0.010
|
||||||
Approximate miles of pipe at end of period
|
147
|
100
|
||||||
Gas compression (horsepower) at end of period
|
15,865
|
9,455
|
||||||
|
||||||||
Utica Shale
|
||||||||
Operating income
|
12,122
|
1,750
|
||||||
Income (loss) from unconsolidated affiliates
|
526
|
(161
|
)
|
|||||
Capital expenditures(1)
|
140,906
|
115,748
|
||||||
Throughput, bcf per day(2)
|
0.233
|
0.054
|
||||||
Approximate miles of pipe at end of period
|
293
|
72
|
||||||
Gas compression (horsepower) at end of period
|
86,580
|
11,555
|
||||||
|
||||||||
Mid-Continent
|
||||||||
Operating income
|
22,746
|
14,113
|
||||||
Income (loss) from unconsolidated affiliates
|
1,820
|
(77
|
)
|
|||||
Capital expenditures(1)
|
17,022
|
39,275
|
||||||
Throughput, bcf per day
|
0.565
|
0.559
|
||||||
Approximate miles of pipe at end of period
|
2,816
|
2,603
|
||||||
Gas compression (horsepower) at end of period
|
108,590
|
107,356
|
||||||
|
||||||||
Corporate
|
||||||||
Operating loss
|
(56,179
|
)
|
(34,765
|
)
|
||||
Capital expenditures
|
32,710
|
43,787
|
||||||
|
||||||||
Total
|
||||||||
Operating income
|
62,636
|
63,721
|
||||||
Income from unconsolidated affiliates
|
42,878
|
25,008
|
||||||
Capital expenditures(1)
|
332,074
|
408,708
|
||||||
Throughput, bcf per day(2)
|
3.828
|
3.550
|
||||||
Approximate miles of pipe at end of period
|
6,414
|
6,101
|
||||||
Gas compression (horsepower) at end of period
|
617,632
|
455,318
|
(1) | Includes capital expenditures accounted for as part of the Partnership’s equity investments and excludes capital expenditures attributable to noncontrolling interests. See page 9 of this release for required reconciliation to GAAP capital expenditures. |
(2) | Throughput represents the net throughput allocated to the Partnership’s interest. |