EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1
 
News Release
 
FOR IMMEDIATE RELEASE
JULY 29, 2014

ACCESS MIDSTREAM PARTNERS, L.P. REPORTS FINANCIAL
RESULTS FOR THE 2014 SECOND QUARTER

Partnership Reports 2014 Second Quarter Adjusted EBITDA of $275 Million, Distributable Cash Flow of $200 Million and Net Income of $67 Million

Partnership Increases Quarterly Distribution to $0.595 per Unit

OKLAHOMA CITY, OKLAHOMA, JULY 29, 2014 – Access Midstream Partners, L.P. (NYSE:ACMP) today announced financial results for the 2014 second quarter.  The Partnership’s adjusted EBITDA for the 2014 second quarter totaled $275.1 million, an increase of $68.5 million, or 33.2%, from 2013 second quarter adjusted EBITDA of $206.6 million.  Net income attributable to the Partnership totaled $67.5 million in the 2014 second quarter, a decrease of $1.7 million, or 2.5%, from the 2013 second quarter net income of $69.2 million.   Distributable cash flow (DCF) for the 2014 second quarter totaled $200.4 million, an increase of $47.7 million, or 31.2%, from 2013 second quarter DCF of $152.7 million and resulted in a distribution coverage ratio of 1.45.  Financial terms are defined on pages two and three of this release.

Throughput for the 2014 second quarter totaled 356.6 billion cubic feet (bcf) of natural gas, or 3.92 bcf per day, an increase of 6.8% from 2013 second quarter throughput of 3.67 bcf per day. Throughput increased in the Partnership’s Marcellus, Utica, Eagle Ford and Niobrara Shale regions.  Partnership revenue for the 2014 second quarter totaled $292.9 million, an increase of $45.7 million, or 18.5%, compared to 2013 second quarter revenue of $247.2 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 2014 second quarter would have totaled $378.0 million, an increase of $71.4 million, or 23.3%, compared to the 2013 second quarter.

Capital expenditures during the 2014 second quarter totaled $307.7 million, including maintenance capital expenditures of $32.5 million.  These capital expenditures included $113.4 million for the Partnership’s share of capital expenditures in entities accounted for as equity investments.
 
Partnership Increases Cash Distribution
 
On July 24, 2014, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.595 per unit for the 2014 second quarter, a $0.11, or 22.7%, per unit increase over the 2013 second quarter distribution and a $0.02, or 3.5%, per unit increase over the 2014 first quarter distribution.  The distribution will be paid on August 14, 2014 to unitholders of record at the close of business on August 7, 2014.  DCF of $200.4 million for the 2014 second quarter provided distribution coverage of 1.45 times the amount required for the Partnership to fund the distribution to the general partner and the limited partners.
 
 
 
 
INVESTOR CONTACT:
 MEDIA CONTACTS:
 
 ACCESS MIDSTREAM
Dave Shiels, CFO
 Debbie Nauser
 Chris Callahan
 525 Central Park Drive
(405) 727-1740
 (405) 727-1612
 (405) 727-1186
 Oklahoma City, OK 73105
dave.shiels@accessmidstream.com
 debbie.nauser@accessmidstream.com
 chris.callahan@accessmidstream.com
 
Management Comments
 
J. Mike Stice, Access Midstream Partners’ Chief Executive Officer, commented, “We are excited about joining the Williams family through the recently completed acquisition of our general partner by The Williams Companies, Inc.  Meanwhile, our operating teams remain focused on executing our growth plan and serving our producer customers.  As highlighted by another strong quarter, the business continues to perform well as producers maintain their focus on the highly prolific unconventional basins we serve.  We expect focused execution of our business model to continue to deliver strong returns for our investors in 2014.”

Williams Acquisition
 
On July 1, 2014, Williams acquired all of the interests in ACMP and ACMP’s general partner that were previously held by entities affiliated with Global Infrastructure Partners.  Williams now owns 100% of and controls ACMP’s general partner, and Global Infrastructure Partners no longer has any ownership interest in ACMP.  Williams has proposed the merger of Williams Partners L.P. (NYSE:WPZ) with and into a subsidiary of ACMP.  The proposed merger is subject to negotiation, review and approval by conflicts committees of each partnership’s board of directors as well as approval by each partnership’s board of directors.  The conflicts committees, comprised solely of independent board members, have retained legal and financial advisors to consider the proposal.
 
Conference Call Information
 
A conference call to discuss this release of financial results has been scheduled for Wednesday, July 30, 2014 at 9:00 a.m. EDT.  The telephone number to access the conference call is 719-325-4836 or toll-free 888-695-0614.  The passcode for the call is 9620705.  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 July 30, 2014 through 12:00 p.m. EDT on August 13, 2014.  The number to access the conference call replay is 719-457-0820 or toll-free 888-203-1112.  The passcode for the replay is 9620705.  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 2013 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
June 30,
  
 
  
2014
    
2013
  
Revenues(1)
  
$
292,934
    
$
247,242
  
 
                
Operating Expenses
                
Operating expenses
    
97,523
      
82,844
  
Depreciation and amortization expense
    
89,976
      
71,869
  
General and administrative expense
    
37,257
      
25,089
  
Other operating (income) expense
    
(317
)
    
1,892
  
 
                
Total operating expenses
    
224,439
      
181,694
  
 
                
Operating income
    
68,495
      
65,548
  
 
                
Other income (expense)
                
Income from unconsolidated affiliates
    
48,063
      
33,745
  
Interest expense
    
(42,903
)
    
(27,732
)
Other income
    
198
      
126
  
 
                
Income before income tax expense
    
73,853
      
71,687
  
Income tax expense
    
1,385
      
1,260
  
 
                
Net income
    
72,468
      
70,427
  
Net income attributable to noncontrolling interests
    
5,014
      
1,214
  
 
                
Net income attributable to Access Midstream Partners, L.P.
  
$
67,454
    
$
69,213
  
 
                
Limited partner interest in net income
                
Net income attributable to Access Midstream Partners, L.P.
  
$
67,454
    
$
69,213
  
Less general partner interest in net income
    
(23,526
)
    
(5,995
)
 
                
Limited partner interest in net income
  
$
43,928
    
$
63,218
  
 
                
Net income per limited partner unit – basic and diluted
                
Common units
  
$
0.18
    
$
0.18
  
Subordinated units
  
$
—
    
$
0.31
  
 
                
Weighted average limited partner units outstanding used for net income per unit calculation – basic and diluted (in thousands)
                
Common units
    
190,954
      
108,673
  
Subordinated units
    
—
      
69,076
  

(1) Excludes revenue from equity investments of $85.1 million and $59.4 million for the three months ended June 30, 2014 and 2013, 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)
 
  
Six Months Ended
June 30,
  
 
  
2014
    
2013
  
Revenues(1)
  
$
570,012
    
$
484,201
  
 
                
Operating Expenses
                
Operating expenses
    
190,436
      
165,607
  
Depreciation and amortization expense
    
175,520
      
138,519
  
General and administrative expense
    
71,437
      
48,823
  
Other operating expense
    
1,488
      
1,983
  
 
                
Total operating expenses
    
438,881
      
354,932
  
 
                
Operating income
    
131,131
      
129,269
  
 
                
Other income (expense)
                
Income from unconsolidated affiliates
    
90,941
      
58,753
  
Interest expense
    
(81,476
)
    
(54,794
)
Other income
    
590
      
395
  
 
                
Income before income tax expense
    
141,186
      
133,623
  
Income tax expense
    
3,189
      
2,500
  
 
                
Net income
    
137,997
      
131,123
  
Net income attributable to noncontrolling interests
    
9,465
      
2,372
  
 
                
Net income attributable to Access Midstream Partners, L.P.
  
$
128,532
    
$
128,751
  
 
                
Limited partner interest in net income
                
Net income attributable to Access Midstream Partners, L.P.
  
$
128,532
    
$
128,751
  
Less general partner interest in net income
    
(43,142
)
    
(10,787
)
 
                
Limited partner interest in net income
  
$
85,390
    
$
117,964
  
 
                
Net income per limited partner unit – basic and diluted
                
Common units
  
$
0.33
    
$
0.32
  
Subordinated units
  
$
—
    
$
0.60
  
 
                
Weighted average limited partner units outstanding used for net income per unit calculation – basic and diluted (in thousands)
                
Common units
    
187,609
      
103,576
  
Subordinated units
    
—
      
69,076
  
 
(1)
Excludes revenue from equity investments of $164.0 million and $106.5 million for the six months ended June 30, 2014 and 2013, 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
June 30,
2014
    
As of
December 31,
2013
  
Assets
  
   
 
 
  
   
 
Total current assets
  
$
243,308
    
$
257,931
  
 
                
Property, plant and equipment
                
Gathering systems
    
6,406,548
      
5,974,940
  
Other fixed assets
    
361,933
      
175,411
  
Less: Accumulated depreciation
    
(999,219
)
    
(859,551
)
 
                
Total property, plant and equipment, net
    
5,769,262
      
5,290,800
  
 
                
Investments in unconsolidated affiliates
    
2,103,530
      
1,936,603
  
Intangible customer relationships, net
    
360,502
      
372,391
  
Deferred loan costs, net
    
64,061
      
59,721
  
 
                
Total assets
  
$
8,540,663
    
$
7,917,446
  
 
                
Liabilities and Partners’ Capital
                
 
                
Total current liabilities
  
$
336,204
    
$
306,472
  
 
                
Long-term liabilities
                
Long-term debt
    
3,805,397
      
3,249,230
  
Other liabilities
    
9,269
      
8,954
  
 
                
Total long-term liabilities
    
3,814,666
      
3,258,184
  
 
                
Total partners’ capital
    
4,389,793
      
4,352,790
  
 
                
Total liabilities and partners’ capital
  
$
8,540,663
    
$
7,917,446
  

7
Access Midstream Partners, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in thousands)
(unaudited)

 
  
Six Months Ended
June 30,
  
 
  
2014
    
2013
  
Cash flows from operating activities
  
   
 
Net income
  
$
137,997
    
$
131,123
  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Depreciation and amortization
    
175,520
      
138,519
  
Income from unconsolidated affiliates
    
(90,941
)
    
(58,753
)
Other non-cash items
    
12,602
      
6,676
  
Distribution of earnings received from unconsolidated affiliates
    
155,358
      
—
  
Changes in assets and liabilities
                
Decrease (increase) in accounts receivable
    
46,309
      
(23,592
)
(Increase) decrease in other assets
    
(5,312
)
    
1,905
  
Increase (decrease) in accounts payable
    
25,733
      
(10,896
)
Increase in accrued liabilities
    
5,495
      
32,598
  
 
                
Net cash provided by operating activities
    
462,761
      
217,580
  
 
                
Cash flows from investing activities
                
Additions to property, plant and equipment
    
(521,170
)
    
(545,594
)
Purchase of compression assets
    
(159,210
)
    
—
  
Investments in unconsolidated affiliates
    
(220,378
)
    
(263,710
)
Proceeds from sale of assets
    
14,296
      
31,696
  
 
                
Net cash used in investing activities
    
(886,462
)
    
(777,608
)
 
                
Cash flows from financing activities
                
Proceeds from long-term borrowings
    
1,053,471
      
875,500
  
Payments on long-term borrowings
    
(1,246,971
)
    
(659,300
)
Proceeds from issuance of common units
    
52,155
      
399,922
  
Proceeds from issuance of senior notes
    
750,000
      
—
  
Distribution to unitholders
    
(252,145
)
    
(177,430
)
Capital contribution from noncontrolling interests
    
95,441
      
71,414
  
Payments on capital lease obligations
    
(1,983
)
    
—
  
Debt issuance costs
    
(8,777
)
    
(5,377
)
Other
    
1,956
      
8,328
  
 
                
Net cash provided by financing activities
    
443,147
      
513,057
  
 
                
Net increase (decrease) in cash and cash equivalents
    
19,446
      
(46,971
)
 
                
Cash and cash equivalents
                
Beginning of period
    
17,229
      
64,994
  
 
                
End of period
  
$
36,675
    
$
18,023
  

8
Access Midstream Partners, L.P.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in thousands)
(unaudited)

 
  
Three Months Ended
June 30,
  
 
  
2014
    
2013
  
 
  
   
 
Net Income attributable to Access Midstream Partners, L.P.
  
$
67,454
    
$
69,213
  
 
                
Adjusted for:
                
Interest expense
    
42,903
      
27,732
  
Income tax expense
    
1,385
      
1,260
  
Depreciation and amortization expense
    
89,976
      
71,869
  
Other
    
(2,116
)
    
320
  
Income from unconsolidated affiliates
    
(48,063
)
    
(33,745
)
EBITDA from unconsolidated affiliates(1) (2)
    
73,042
      
49,751
  
Expense for non-cash equity awards
    
13,975
      
8,933
  
Implied minimum volume commitment
    
36,500
      
11,250
  
 
                
Adjusted EBITDA
  
$
275,056
    
$
206,583
  
 
                
Adjusted for:
                
Maintenance capital expenditures
    
(32,500
)
    
(27,500
)
Cash portion of interest expense
    
(40,750
)
    
(25,115
)
Income tax expense
    
(1,385
)
    
(1,260
)
 
                
Distributable cash flow
  
$
200,421
    
$
152,708
  
 
                
 
                
Cash provided by operating activities
  
$
192,937
    
$
137,450
  
 
                
Adjusted for:
                
Change in assets and liabilities
    
(28,252
)
    
(26,358
)
Distribution of earnings received from unconsolidated affiliates
    
(43,316
)
    
—
  
Interest expense
    
42,903
      
27,732
  
Income tax expense
    
1,385
      
1,260
  
Other non-cash items
    
(14,118
)
    
(3,435
)
EBITDA from unconsolidated affiliates(1) (2)
    
73,042
      
49,751
  
Expense for non-cash equity awards
    
13,975
      
8,933
  
Implied minimum volume commitment
    
36,500
      
11,250
  
 
                
Adjusted EBITDA
  
$
275,056
    
$
206,583
  
 
                
Adjusted for:
                
Maintenance capital expenditures
    
(32,500
)
    
(27,500
)
Cash portion of interest expense
    
(40,750
)
    
(25,115
)
Income tax expense
    
(1,385
)
    
(1,260
)
 
                
Distributable cash flow
  
$
200,421
    
$
152,708
  
 
                
Cash distribution
                
Limited partner units 2014: ($0.595 x  190,794,183 units) 2013: ($0.485 x  188,068,160 units)
  
$
113,522
    
$
91,213
  
General partner interest
    
24,947
      
6,567
  
 
                
Total cash distribution
  
$
138,469
    
$
97,780
  
 
                
Distribution coverage ratio
    
1.45
      
1.56
  
 
(1) 
EBITDA from unconsolidated affiliates is calculated as follows:
 
Net Income
  
$
48,063
    
$
33,745
  
                 
Adjusted for:
                
Depreciation and amortization expense
    
24,857
      
16,007
  
Other
    
122
      
(1
)
                 
EBITDA from unconsolidated affiliates
  
$
73,042
    
$
49,751
  
 
(2)
The Partnership maintains equity investments in 10 gathering systems in the Marcellus Shale, an equity investment in Utica East Ohio Midstream, LLC. and an equity investment in Ranch Westex JV, LLC.
9
Access Midstream Partners, L.P.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in thousands)
(unaudited)
 
 
  
Six Months Ended
June 30,
  
 
  
2014
    
2013
  
 
  
   
 
Net Income attributable to Access Midstream Partners, L.P.
  
$
128,532
    
$
128,751
  
 
                
Adjusted for:
                
Interest expense
    
81,476
      
54,794
  
Income tax expense
    
3,189
      
2,500
  
Depreciation and amortization expense
    
175,520
      
138,519
  
Other
    
(2,897
)
    
(320
)
Income from unconsolidated affiliates
    
(90,941
)
    
(58,753
)
EBITDA from unconsolidated affiliates(1) (2)
    
139,568
      
89,210
  
Expense for non-cash equity awards
    
23,789
      
16,323
  
Implied minimum volume commitment
    
67,000
      
20,000
  
 
                
Adjusted EBITDA
  
$
525,236
    
$
391,024
  
 
                
Adjusted for:
                
Maintenance capital expenditures
    
(65,000
)
    
(55,000
)
Cash portion of interest expense
    
(77,374
)
    
(50,207
)
Income tax expense
    
(3,189
)
    
(2,500
)
 
                
Distributable cash flow
  
$
379,673
    
$
283,317
  
 
                
 
                
Cash provided by operating activities
  
$
462,761
    
$
217,580
  
 
                
Adjusted for:
                
Change in assets and liabilities
    
(72,225
)
    
(15
)
Distribution of earnings received from unconsolidated affiliates
    
(155,358
)
    
—
  
Interest expense
    
81,476
      
54,794
  
Income tax expense
    
3,189
      
2,500
  
Other non-cash items
    
(24,964
)
    
(9,368
)
EBITDA from unconsolidated affiliates(1) (2)
    
139,568
      
89,210
  
Expense for non-cash equity awards
    
23,789
      
16,323
  
Implied minimum volume commitment
    
67,000
      
20,000
  
 
                
Adjusted EBITDA
  
$
525,236
    
$
391,024
  
 
                
Adjusted for:
                
Maintenance capital expenditures
    
(65,000
)
    
(55,000
)
Cash portion of interest expense
    
(77,374
)
    
(50,207
)
Income tax expense
    
(3,189
)
    
(2,500
)
 
                
Distributable cash flow
  
$
379,673
    
$
283,317
  
 
(1) 
EBITDA from unconsolidated affiliates is calculated as follows:
 
Net Income
  
$
90,941
    
$
58,753
  
                 
Adjusted for:
                
Depreciation and amortization expense
    
48,507
      
30,473
  
Other
    
120
      
(16
)
                 
EBITDA from unconsolidated affiliates
  
$
139,568
    
$
89,210
  
 
(2)
The Partnership maintains equity investments in 10 gathering systems in the Marcellus Shale, an equity investment in Utica East Ohio Midstream, LLC. and an equity investment in Ranch Westex JV, LLC.
10
Access Midstream Partners, L.P.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in thousands)
(unaudited)

 
  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
 
  
2014
    
2013
    
2014
    
2013
  
 
  
($ in thousands)
  
 
  
   
   
   
 
GAAP Capital Expenditures
  
$
251,539
    
$
274,640
    
$
521,170
    
$
545,594
  
 
                                
Adjusted for:
                                
Capital expenditures included in unconsolidated affiliates
    
113,454
      
190,172
      
222,844
      
355,678
  
Capital expenditures attributable to noncontrolling interest
    
(57,315
)
    
(39,594
)
    
(104,262
)
    
(67,346
)
 
                                
Net Capital Expenditures
  
$
307,678
    
$
425,218
    
$
639,752
    
$
833,926
  
 
 
 
  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
 
  
2014
    
2013
    
2014
    
2013
  
 
  
($ in thousands)
  
 
  
   
   
   
 
Revenues
  
$
292,934
    
$
247,242
    
$
570,012
    
$
484,201
  
 
                                
Adjusted for:
                                
Revenues included in investments in unconsolidated affiliates
    
85,088
      
59,363
      
163,968
      
106,510
  
 
                                
Total revenues including revenues from equity investments
  
$
378,022
    
$
306,605
    
$
733,980
    
$
590,711
  

11
Access Midstream Partners, L.P.
SEGMENT INFORMATION AND OPERATING STATISTICS
($ in thousands)
(unaudited)

 
  
Three Months Ended
June 30,
  
 
  
2014
    
2013
  
Barnett Shale
  
   
 
Operating income
    
36,170
      
42,421
  
Income from unconsolidated affiliates
    
—
      
—
  
Capital expenditures
    
2,777
      
13,395
  
Throughput, bcf per day
    
0.925
      
1.024
  
Approximate miles of pipe at end of period
    
860
      
851
  
Gas compression (horsepower) at end of period
    
144,045
      
153,115
  
 
                
Eagle Ford Shale
                
Operating income
    
52,780
      
39,439
  
Income from unconsolidated affiliates
    
—
      
—
  
Capital expenditures
    
46,090
      
83,443
  
Throughput, bcf per day
    
0.293
      
0.258
  
Approximate miles of pipe at end of period
    
911
      
751
  
Gas compression (horsepower) at end of period
    
111,117
      
70,812
  
 
                
Haynesville Shale
                
Operating income (loss)
    
(2,534
)
    
2,041
  
Income from unconsolidated affiliates
    
—
      
—
  
Capital expenditures
    
2,596
      
2,777
  
Throughput, bcf per day
    
0.608
      
0.695
  
Approximate miles of pipe at end of period
    
581
      
581
  
Gas compression (horsepower) at end of period
    
21,970
      
20,195
  
 
                
Marcellus Shale
                
Operating income (loss)
    
(597
)
    
3,776
  
Income from unconsolidated affiliates
    
40,671
      
34,492
  
Capital expenditures(1)
    
47,028
      
75,946
  
Throughput, bcf per day(2)
    
1.186
      
0.996
  
Approximate miles of pipe at end of period
    
855
      
1,332
  
Gas compression (horsepower) at end of period
    
136,780
      
89,850
  
 
                
Niobrara Shale
                
Operating income (loss)
    
1,094
      
(671
)
Income from unconsolidated affiliates
    
—
      
—
  
Capital expenditures(1)
    
28,930
      
5,835
  
Throughput, bcf per day(2)
    
0.022
      
0.010
  
Approximate miles of pipe at end of period
    
150
      
113
  
Gas compression (horsepower) at end of period
    
15,865
      
13,595
  
 
                
Utica Shale
                
Operating income
    
16,725
      
2,704
  
Income (loss) from unconsolidated affiliates
    
4,584
      
(929
)
Capital expenditures(1)
    
132,911
      
172,227
  
Throughput, bcf per day(2)
    
0.320
      
0.074
  
Approximate miles of pipe at end of period
    
323
      
149
  
Gas compression (horsepower) at end of period
    
88,330
      
16,880
  
 
                
Mid-Continent
                
Operating income
    
22,390
      
19,621
  
Income from unconsolidated affiliates
    
2,808
      
182
  
Capital expenditures(1)
    
22,452
      
31,403
  
Throughput, bcf per day
    
0.564
      
0.608
  
Approximate miles of pipe at end of period
    
2,815
      
2,602
  
Gas compression (horsepower) at end of period
    
105,789
      
108,370
  
 
                
Corporate
                
Operating loss
    
(57,533
)
    
(43,783
)
Capital expenditures
    
24,894
      
40,192
  
 
                
Total
                
Operating income
    
68,495
      
65,548
  
Income from unconsolidated affiliates
    
48,063
      
33,745
  
Capital expenditures(1)
    
307,678
      
425,218
  
Throughput, bcf per day(2)
    
3.918
      
3.665
  
Approximate miles of pipe at end of period
    
6,495
      
6,379
  
Gas compression (horsepower) at end of period
    
623,896
      
472,817
  
 
(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.
SEGMENT INFORMATION AND OPERATING STATISTICS
(unaudited)

 
  
Six Months Ended
June 30,
  
 
  
2014
    
2013
  
Barnett Shale
  
   
 
Operating income
    
73,466
      
87,651
  
Income from unconsolidated affiliates
    
—
      
—
  
Capital expenditures
    
8,792
      
34,399
  
Throughput, bcf per day
    
0.949
      
1.045
  
Approximate miles of pipe at end of period
    
860
      
851
  
Gas compression (horsepower) at end of period
    
144,045
      
153,115
  
 
                
Eagle Ford Shale
                
Operating income
    
99,996
      
72,911
  
Income from unconsolidated affiliates
    
—
      
—
  
Capital expenditures
    
123,573
      
165,359
  
Throughput, bcf per day
    
0.280
      
0.243
  
Approximate miles of pipe at end of period
    
911
      
751
  
Gas compression (horsepower) at end of period
    
111,117
      
70,812
  
 
                
Haynesville Shale
                
Operating income (loss)
    
(5,474
)
    
4,914
  
Income from unconsolidated affiliates
    
—
      
—
  
Capital expenditures
    
6,246
      
10,562
  
Throughput, bcf per day
    
0.583
      
0.732
  
Approximate miles of pipe at end of period
    
581
      
581
  
Gas compression (horsepower) at end of period
    
21,970
      
20,195
  
 
                
Marcellus Shale
                
Operating income (loss)
    
(1,049
)
    
4,785
  
Income from unconsolidated affiliates
    
81,203
      
59,738
  
Capital expenditures(1)
    
86,682
      
169,376
  
Throughput, bcf per day(2)
    
1.196
      
0.930
  
Approximate miles of pipe at end of period
    
855
      
1,332
  
Gas compression (horsepower) at end of period
    
136,780
      
89,850
  
 
                
Niobrara Shale
                
Operating income (loss)
    
3,921
      
(632
)
Income from unconsolidated affiliates
    
—
      
—
  
Capital expenditures(1)
    
43,564
      
11,598
  
Throughput, bcf per day(2)
    
0.024
      
0.010
  
Approximate miles of pipe at end of period
    
150
      
113
  
Gas compression (horsepower) at end of period
    
15,865
      
13,595
  
 
                
Utica Shale
                
Operating income
    
28,847
      
4,454
  
Income (loss) from unconsolidated affiliates
    
5,110
      
(1,090
)
Capital expenditures(1)
    
273,817
      
287,975
  
Throughput, bcf per day(2)
    
0.277
      
0.064
  
Approximate miles of pipe at end of period
    
323
      
149
  
Gas compression (horsepower) at end of period
    
88,330
      
16,880
  
 
                
Mid-Continent
                
Operating income
    
45,136
      
33,734
  
Income from unconsolidated affiliates
    
4,628
      
105
  
Capital expenditures(1)
    
39,474
      
70,678
  
Throughput, bcf per day
    
0.564
      
0.583
  
Approximate miles of pipe at end of period
    
2,815
      
2,602
  
Gas compression (horsepower) at end of period
    
105,789
      
108,370
  
 
                
Corporate
                
Operating loss
    
(113,712
)
    
(78,548
)
Capital expenditures
    
57,604
      
83,979
  
 
                
Total
                
Operating income
    
131,131
      
129,269
  
Income from unconsolidated affiliates
    
90,941
      
58,753
  
Capital expenditures(1)
    
639,752
      
833,926
  
Throughput, bcf per day(2)
    
3.873
      
3.607
  
Approximate miles of pipe at end of period
    
6,495
      
6,379
  
Gas compression (horsepower) at end of period
    
623,896
      
472,817
  
 
(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.
 
 
13