| NEWS RELEASE |
CONE MIDSTREAM REPORTS STRONG THIRD QUARTER RESULTS AND INCREASES FULL YEAR 2015 GUIDANCE
CANONSBURG, PA (November 3, 2015) — CONE Midstream Partners LP (NYSE:CNNX) ("CONE Midstream" or the "Partnership") today reported financial and operational results for the three months ended September 30, 2015.(1)
Third Quarter Results
Highlights of third quarter 2015 results attributable to the Partnership include:
| • | Net income of $19.7 million |
| • | Average daily throughput volumes of 642 billion Btu per day (BBtu/d) |
| • | Adjusted EBITDA(2) of $21.9 million |
| • | Distributable cash flow (DCF)(2) of $19.6 million |
| • | Cash distribution coverage of 1.45x on a declared basis |
Management Comment
"We are pleased to report very strong third quarter financial and operational results for CONE Midstream," said John T. Lewis, Chairman of the Board and Chief Executive Officer of CONE Midstream GP LLC (the "General Partner"). "Revenue and average throughput for the third quarter both increased by approximately 13% over their respective second quarter amounts as a result of new well connections and the impact of debottlenecking projects coming on line. Our continued focus on cost optimization yielded an approximate 19% decrease in this quarter's operating expense as compared with the second quarter. Our strong revenue growth combined with reduced operating expense resulted in record quarterly net income of $19.7 million, which represents a sequential quarterly increase of approximately 32%. Our entire operating team deserves recognition for their hard work to produce these outstanding results through their successful efforts in improving efficiency, reducing costs, and completing projects on schedule and on budget.
"In light of our strong results for the quarter and current anticipation for similar performance in the fourth quarter, we have increased our expectations for the year. As a result, we are raising our EBITDA and DCF guidance for full year 2015."
Quarterly Distribution
As previously announced, the Board of Directors of the General Partner declared a quarterly cash distribution of $0.228 per unit with respect to the third quarter of 2015. The distribution payment will be made on November 13, 2015 to unitholders of record at the close of business on November 9, 2015. The distribution, which equates to an annual rate of $0.912 per unit, represents an increase of 3.6% over the prior quarter and an increase of 7.3% over the Minimum Quarterly Distribution as defined in our Partnership Agreement.
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Capital Investment and Resources
CONE Midstream's allocated third quarter 2015 share of investment in expansion projects was $36.1 million. Total expansion capital investment at the three development companies in which CONE Midstream holds controlling interests was $90.8 million, with individual development company totals as follows:
| • | Anchor Systems (Development Company 1): Expansion investments totaled approximately$45.1 million and were primarily expended for continued gathering system extensions to nine well pads in Greene and Washington Counties (PA), additional compression at McQuay and Majorsville Stations, along with pipeline expansion and an additional tap to relieve bottlenecks in the North Nineveh field. |
| • | Growth Systems (Development Company 2): Expansion investments totaled approximately$2.2 million and primarily were expended on land and permitting associated with future development in Harrison and Lewis Counties (WV) and dehydration expansion at our Camden Facility. |
| • | Additional Systems (Development Company 3): Expansion investments totaled approximately$43.5 million for the continued construction of Shirley Station, construction of our Sherwood South gathering pipeline that connects the Oxford field in southern Doddridge County to MarkWest Sherwood, and additional pipeline construction in the Moundsville field and Allegheny County Airport project areas. |
CONE Midstream's respective share of maintenance capital expenditures for the three development companies for the third quarter 2015 was $2.3 million. Maintenance capital expenditures in the aggregate for the development companies in which CONE Midstream holds controlling interests totaled $4.0 million.
As of September 30, 2015, CONE Midstream had outstanding borrowings of $56.5 million under its $250 million revolving credit facility.
2015 Guidance
Based on current expectations, management is providing the following updated guidance for 2015. Full year 2015 EBITDA attributable to the Partnership, previously projected to be in the range of $66 - $72 million, is now expected to be in the range of $76 - $80 million. Full year Distributable Cash Flow attributable to the Partnership, previously projected to be in the range of $55 - $62 million, is now expected to be in the range of $66 - $70 million. Capital expenditures attributable to the Partnership, previously projected to be in the range of $95 - $115 million, are now expected to be in the range of $120 - $130 million of which approximately $8 - $10 million will be for maintenance capital. CONE Midstream’s financial guidance is based on numerous assumptions about future events and conditions and, therefore, could vary materially from actual results. These estimates are meant to provide guidance only and are subject to revision for acquisitions or operating environment changes.
Third Quarter Financial and Operational Results Conference Call
A conference call and webcast, during which management will discuss third quarter 2015 financial and operational results, is scheduled for November 3, 2015 at 1:00 p.m. Eastern Time. Reference material for the call will be available on the "Events" page of our website, www.conemidstream.com, shortly before the start of the call. Prepared remarks by members of management will be followed by a question and answer period. Interested parties may listen via webcast by using the link posted on the "Events" page of our website or at www.webcaster4.com/Webcast/Page/998/11052. Participants who would like to ask questions may join the conference by phone at 888-349-0097 (international 412-902-0126) five to ten minutes prior to the scheduled start time (reference the CONE Midstream call). An on-demand replay of the webcast will be
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also be available at www.webcaster4.com/Webcast/Page/998/11052 shortly after the conclusion of the conference call. A telephonic replay will be available through November 10, 2015 by dialing 877-344-7529 (international: 412-317-0088) and using the conference playback number 10074249.
_______________
(1) | Unless otherwise indicated, the reporting measures included in this news release reflect the unallocated total activity of the three development companies jointly owned by the Partnership and CONE Gathering LLC (“CONE Gathering”). Because the Partnership owns a controlling interest in each of the three development companies, it fully consolidates their financial results. The Partnership's current financial interests in the development companies are: 75% in the Anchor Systems, 5% in the Growth Systems, and 5% in the Additional Systems. CONE Gathering is a midstream joint venture formed by CONSOL Energy Inc. and Noble Energy, Inc. and owns non-controlling interests in the Partnership’s development companies. |
(2) | EBITDA and DCF are not measures that are recognized under accounting principles generally accepted in the U.S. (“GAAP”). Definitions and reconciliations of these non-GAAP measures to GAAP reporting measures appear in the financial tables which follow. |
| Contact: | Stephen R. Milbourne |
CONE Investor Relations
| Phone: | 724-485-4408 |
| Email: | smilbourne@conemidstream.com |
* * * * *
CONE Midstream Partners is a master limited partnership formed by CONSOL Energy Inc. (NYSE: CNX) and Noble Energy, Inc. (NYSE: NBL), referred to as our Sponsors, to own, operate, develop and acquire natural gas gathering and other midstream energy assets to service our Sponsors' production in the Marcellus Shale in Pennsylvania and West Virginia. Our assets include natural gas gathering pipelines and compression and dehydration facilities, as well as condensate gathering, collection, separation and stabilization facilities. More information is available on our website www.conemidstream.com.
* * * * *
This press release is intended to be a qualified notice to nominees as provided for under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of CONE Midstream’s distributions to non-U.S. investors as being attributed to income that is effectively connected with a United States trade or business. Accordingly, CONE Midstream's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. Nominees, and not CONE Midstream, are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
* * * * *
This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words "believe," "expect," "anticipate," "intend," "estimate" and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, and there can be no assurance that actual outcomes and results will not differ materially from those expected by our management. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, among others: the effects of changes in market prices of natural gas, NGLs and crude oil on our Sponsors’
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drilling and development plan on our dedicated acreage and the volumes of natural gas and condensate that are produced on our dedicated acreage; changes in our Sponsors’ drilling and development plan in the Marcellus Shale; our Sponsors’ ability to meet their drilling and development plan in the Marcellus Shale; the demand for natural gas and condensate gathering services; changes in general economic conditions; competitive conditions in our industry; actions taken by third-party operators, gatherers, processors and transporters; our ability to successfully implement our business plan; and our ability to complete internal growth projects on time and on budget. You should not place undue reliance on our forward-looking statements. Although forward-looking statements reflect our good faith beliefs at the time they are made, forward-looking statements involve known and unknown risks, uncertainties and other factors, including the factors described under “Risk Factors” and “Forward-Looking Statements” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.
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CONE MIDSTREAM PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per unit data)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Revenue | |||||||||||||||
| Gathering Revenue — Related Party | $ | 53,753 | $ | 35,770 | $ | 144,638 | $ | 87,687 | |||||||
| Total Revenue | 53,753 | 35,770 | 144,638 | 87,687 | |||||||||||
| Expenses | |||||||||||||||
| Operating Expense — Third Party | 4,736 | 6,908 | 22,205 | 18,336 | |||||||||||
| Operating Expense — Related Party | 8,095 | 6,030 | 22,079 | 18,553 | |||||||||||
| General and Administrative Expense — Third Party | 968 | 107 | 3,533 | 936 | |||||||||||
| General and Administrative Expense — Related Party | 2,413 | 1,599 | 6,385 | 2,957 | |||||||||||
| Depreciation Expense | 3,769 | 1,808 | 10,430 | 5,105 | |||||||||||
| Interest Expense | 158 | — | 270 | — | |||||||||||
| Total Expense | 20,139 | 16,452 | 64,902 | 45,887 | |||||||||||
| Net Income | 33,614 | 19,318 | 79,736 | 41,800 | |||||||||||
| Less: Net Income Attributable to Noncontrolling Interest | 13,957 | 82 | 30,954 | 82 | |||||||||||
| Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP | $ | 19,657 | $ | 19,236 | $ | 48,782 | $ | 41,718 | |||||||
| Calculation of Limited Partner Interest in Net Income: | |||||||||||||||
Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP (1) | $ | 19,657 | $ | 127 | $ | 48,782 | $ | 127 | |||||||
| Less: General Partner Interest in Net Income | 393 | 3 | 976 | 3 | |||||||||||
| Limited Partner Interest in Net Income | $ | 19,264 | $ | 124 | $ | 47,806 | $ | 124 | |||||||
| Net Income per Limited Partner Unit - Basic | $ | 0.33 | $ | — | $ | 0.82 | $ | — | |||||||
| Net Income per Limited Partner Unit - Diluted | $ | 0.33 | $ | — | $ | 0.82 | $ | — | |||||||
| Limited Partner Units Outstanding - Basic | 58,326 | 58,326 | 58,326 | 58,326 | |||||||||||
| Limited Partner Unit Outstanding - Diluted | 58,333 | 58,326 | 58,331 | 58,326 | |||||||||||
Cash Distributions Declared per Unit (2) | $ | 0.2280 | N/A | $ | 0.6605 | N/A | |||||||||
| (1) | Includes general and limited partner interest in net income since closing of the IPO. |
| (2) | Represents the cash distributions declared related to the period presented. |
CONE MIDSTREAM PARTNERS LP
RECONCILIATION OF NET INCOME TO EBITDA AND DISTRIBUTABLE CASH FLOW
(in thousands)
Non-GAAP Financial Measures
Adjusted EBITDA
We define adjusted EBITDA as net income (loss) before net interest expense, depreciation and amortization, as adjusted for certain non-cash items which should not be included in the calculation of distributable cash flow. Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess:
| • | our operating performance as compared to those of other companies in the midstream energy industry, without regard to financing methods, historical cost basis or capital structure; |
| • | the ability of our assets to generate sufficient cash flow to make distributions to our partners; |
| • | our 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. |
We believe that the presentation of adjusted EBITDA provides information that is useful to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to adjusted EBITDA are net income and net cash provided by operating activities. Adjusted EBITDA should not be considered an alternative to net income, net cash provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA excludes some, but not all, items that affect net income or net cash, and these measures may vary from those of other companies. As a result, adjusted EBITDA as presented below may not be comparable to similarly titled measures of other companies.
Distributable Cash Flow
We define distributable cash flow as adjusted EBITDA less net cash interest paid and maintenance capital expenditures. Distributable cash flow does not reflect changes in working capital balances.
Distributable cash flow is used as a supplemental financial measure by management and by external users of our financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess:
| • | the ability of our assets to generate cash sufficient to support our indebtedness and make future cash distributions to our unitholders; and |
| • | the attractiveness of capital projects and acquisitions and the overall rates of return on alternative investment opportunities. |
We believe that the presentation of distributable cash flow provides information useful to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to distributable cash flow are net income and net cash provided by operating activities. Distributable cash flow should not be considered an alternative to net income, net cash provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Distributable cash flow excludes some, but not all, items that affect net income or net cash, and these measures may vary from those of other companies. As a result, our distributable cash flow may not be comparable to similarly titled measures of other companies.
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 presents a reconciliation of the non-GAAP measures adjusted EBITDA and distributable cash flow with the most directly comparable GAAP financial measures of net income and net cash provided by operating activities.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (unaudited) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Net Income | $ | 33,614 | $ | 19,318 | $ | 79,736 | $ | 41,800 | ||||||||
| Interest Expense | 158 | — | 270 | — | ||||||||||||
| Depreciation Expense | 3,769 | 1,808 | 10,430 | 5,105 | ||||||||||||
| EBITDA | 37,541 | 21,126 | 90,436 | 46,905 | ||||||||||||
| Non-Cash Unit-Based Compensation Expense | 118 | — | 310 | — | ||||||||||||
| Adjusted EBITDA | 37,659 | 21,126 | 90,746 | 46,905 | ||||||||||||
| Less: | ||||||||||||||||
Net Income Attributable to Noncontrolling Interest (1) | 13,957 | 82 | 30,954 | 82 | ||||||||||||
Interest Expense Attributable to Noncontrolling Interest (1) | 63 | — | 97 | — | ||||||||||||
Depreciation Expense Attributable to Noncontrolling Interest (1) | 1,728 | 6 | 4,553 | 6 | ||||||||||||
| Adjusted EBITDA Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP | $ | 21,911 | $ | 21,038 | $ | 55,142 | $ | 46,817 | ||||||||
| Less: Ongoing Maintenance Capital Expenditures, Net of Expected Reimbursements | 2,291 | 1,644 | 6,430 | 3,344 | ||||||||||||
| Distributable Cash Flow | $ | 19,620 | $ | 19,394 | $ | 48,712 | $ | 43,473 | ||||||||
| Net Cash Provided by Operating Activities | $ | 38,808 | $ | 23,731 | $ | 99,268 | $ | 62,363 | ||||||||
| Interest Expense | 158 | — | 270 | — | ||||||||||||
| Other, Including Changes in Working Capital | (1,307 | ) | (2,605 | ) | (8,792 | ) | (15,458 | ) | ||||||||
| Adjusted EBITDA | 37,659 | 21,126 | 90,746 | 46,905 | ||||||||||||
| Less: | ||||||||||||||||
Net Income Attributable to Noncontrolling Interest (1) | 13,957 | 82 | 30,954 | 82 | ||||||||||||
Interest Expense Attributable to Noncontrolling Interest (1) | 63 | — | 97 | — | ||||||||||||
Depreciation Expense Attributable to Noncontrolling Interest (1) | 1,728 | 6 | 4,553 | 6 | ||||||||||||
| Adjusted EBITDA Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP | $ | 21,911 | $ | 21,038 | $ | 55,142 | $ | 46,817 | ||||||||
| Less: Ongoing Maintenance Capital Expenditures, Net of Expected Reimbursements | 2,291 | 1,644 | 6,430 | 3,344 | ||||||||||||
| Distributable Cash Flow | $ | 19,620 | $ | 19,394 | $ | 48,712 | $ | 43,473 | ||||||||
(1) Noncontrolling interest amounts for the three and nine months ended September 30, 2014 are for a one day period because the closing of the initial public offering of CNNX occurred on September 30, 2014.
The following table presents a reconciliation of the non-GAAP measures adjusted EBITDA and distributable cash flow by quarter and for the most recently completed twelve month period with the most directly comparable GAAP financial measures, which are net income and net cash provided by operating activities.
| (unaudited) | Q4 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Twelve Months Ended September 30, 2015 | |||||||||||||||
| Net Income | $ | 23,027 | $ | 21,216 | $ | 24,905 | $ | 33,614 | $ | 102,762 | ||||||||||
| Interest Expense | 24 | 65 | 47 | 158 | 294 | |||||||||||||||
| Depreciation Expense | 2,225 | 2,994 | 3,667 | 3,769 | 12,655 | |||||||||||||||
| EBITDA | 25,276 | 24,275 | 28,619 | 37,541 | 115,711 | |||||||||||||||
| Non-Cash Unit-Based Compensation Expense | — | 96 | 96 | 118 | 310 | |||||||||||||||
| Adjusted EBITDA | 25,276 | 24,371 | 28,715 | 37,659 | 116,021 | |||||||||||||||
| Less: | ||||||||||||||||||||
Net Income Attributable to Noncontrolling Interest (1) | 7,776 | 7,004 | 9,993 | 13,957 | 38,730 | |||||||||||||||
Interest Expense Attributable to Noncontrolling Interest (1) | — | 20 | 14 | 63 | 97 | |||||||||||||||
Depreciation Expense Attributable to Noncontrolling Interest (1) | 857 | 1,166 | 1,659 | 1,728 | 5,410 | |||||||||||||||
| Adjusted EBITDA Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP | $ | 16,643 | $ | 16,181 | $ | 17,049 | $ | 21,911 | $ | 71,784 | ||||||||||
| Less: Ongoing Maintenance Capital Expenditures, Net of Expected Reimbursements | 1,799 | 1,991 | 2,148 | 2,291 | 8,229 | |||||||||||||||
| Distributable Cash Flow | $ | 14,844 | $ | 14,190 | $ | 14,901 | $ | 19,620 | $ | 63,555 | ||||||||||
| Net Cash Provided by Operating Activities | $ | 22,331 | $ | 10,206 | $ | 50,254 | $ | 38,808 | $ | 121,599 | ||||||||||
| Interest Expense | 24 | 65 | 47 | 158 | 294 | |||||||||||||||
| Other, Including Changes in Working Capital | 2,921 | 14,100 | (21,586 | ) | (1,307 | ) | (5,872 | ) | ||||||||||||
| Adjusted EBITDA | 25,276 | 24,371 | 28,715 | 37,659 | 116,021 | |||||||||||||||
| Less: | ||||||||||||||||||||
Net Income Attributable to Noncontrolling Interest (1) | 7,776 | 7,004 | 9,993 | 13,957 | 38,730 | |||||||||||||||
Interest Expense Attributable to Noncontrolling Interest (1) | — | 20 | 14 | 63 | 97 | |||||||||||||||
Depreciation Expense Attributable to Noncontrolling Interest (1) | 857 | 1,166 | 1,659 | 1,728 | 5,410 | |||||||||||||||
| Adjusted EBITDA Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP | $ | 16,643 | $ | 16,181 | $ | 17,049 | $ | 21,911 | $ | 71,784 | ||||||||||
| Less: Ongoing Maintenance Capital Expenditures, Net of Expected Reimbursements | 1,799 | 1,991 | 2,148 | 2,291 | 8,229 | |||||||||||||||
| Distributable Cash Flow | $ | 14,844 | $ | 14,190 | $ | 14,901 | $ | 19,620 | $ | 63,555 | ||||||||||
Distributions Declared (2) | $ | 12,784 | $ | 12,647 | $ | 13,094 | $ | 13,570 | $ | 52,095 | ||||||||||
| Distribution Coverage Ratio - Declared | 1.16 | x | 1.12 | x | 1.14 | x | 1.45 | x | 1.22 | x | ||||||||||
| Distributable Cash Flow | $ | 14,844 | $ | 14,190 | $ | 14,901 | $ | 19,620 | ||||||||||||
| Distributions Paid | $ | — | $ | 12,784 | $ | 12,647 | $ | 13,094 | ||||||||||||
| Distribution Coverage Ratio - Paid | — | 1.11 | x | 1.18 | x | 1.50 | x | |||||||||||||
(1) Noncontrolling interest amounts for the three and nine months ended September 30, 2014 are for a one day period because the closing of the initial public offering of CNNX occurred on September 30, 2014.
(2) The Partnership's cash distribution for the period ended December 31, 2014 was $0.2148 per unit, which was prorated with respect to the period commencing on September 30, 2014 (the closing date of the Partnership's initial public offering) through December 31, 2014. The prorated amount corresponds to the Partnership's minimum quarterly distribution of $0.2125 per unit, or $0.85 per unit on an annualized basis.
CONE MIDSTREAM PARTNERS LP
CONSOLIDATED BALANCE SHEETS
(in thousands, except number of units)
| (unaudited) | |||||||
| September 30, 2015 | December 31, 2014 | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash | $ | 1,205 | $ | 3,252 | |||
| Receivables — Related Party | 32,220 | 58,749 | |||||
| Inventory | 18,916 | — | |||||
| Prepaid Expenses | 740 | 1,280 | |||||
| Other Current Assets | 164 | 164 | |||||
| Total Current Assets | 53,245 | 63,445 | |||||
| Property and Equipment: | |||||||
| Property and Equipment | 853,999 | 639,735 | |||||
| Less — Accumulated Depreciation | 27,102 | 16,989 | |||||
| Property and Equipment — Net | 826,897 | 622,746 | |||||
| Other Non-Current Assets | 569 | 613 | |||||
| TOTAL ASSETS | $ | 880,711 | $ | 686,804 | |||
| LIABILITIES AND EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts Payable | $ | 74,772 | $ | 70,635 | |||
| Accounts Payable — Related Party | 8,778 | 2,106 | |||||
| Total Current Liabilities | 83,550 | 72,741 | |||||
| Other Liabilities: | |||||||
| Revolving Credit Facility | 56,500 | 31,300 | |||||
| Total Liabilities | 140,050 | 104,041 | |||||
| Partners' Capital: | |||||||
| Common Units (29,163,121 Units Issued and Outstanding at September 30, 2015 and December 31, 2014) | 394,948 | 389,612 | |||||
| Subordinated Units (29,163,121 Units Issued and Outstanding at September 30, 2015 and December 31, 2014) | (87,259 | ) | (92,285 | ) | |||
| General Partner Interest | (3,567 | ) | (3,772 | ) | |||
| Partners' Capital Attributable to CONE Midstream Partners LP | 304,122 | 293,555 | |||||
| Noncontrolling Interest | 436,539 | 289,208 | |||||
| Total Partners' Capital | 740,661 | 582,763 | |||||
| TOTAL LIABILITIES AND PARTNERS' CAPITAL | $ | 880,711 | $ | 686,804 | |||
CONE MIDSTREAM PARTNERS LP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Three Months Ended September 30, | |||||||
| 2015 | 2014 | ||||||
| Cash Flows from Operating Activities: | |||||||
| Net Income | $ | 33,614 | $ | 19,318 | |||
| Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | |||||||
| Depreciation Expense and Amortization of Debt Issuance Costs | 3,810 | 1,808 | |||||
| Unit Based Compensation | 118 | — | |||||
| Changes in Operating Assets: | |||||||
| Receivables — Related Party | (10,894 | ) | (4,846 | ) | |||
| Inventory | (2,284 | ) | — | ||||
| Prepaid Expenses | 18 | (482 | ) | ||||
| Non-Current Assets | (80 | ) | (168 | ) | |||
| Changes in Operating Liabilities: | |||||||
| Accounts Payable | 10,137 | 5,120 | |||||
| Accounts Payable — Related Party | 4,369 | 2,981 | |||||
| Net Cash Provided by Operating Activities | 38,808 | 23,731 | |||||
| Cash Flows from Investing Activities: | |||||||
| Capital Expenditures | (94,781 | ) | (67,462 | ) | |||
| Net Cash Used in Investing Activities | (94,781 | ) | (67,462 | ) | |||
| Cash Flows from Financing Activities: | |||||||
| Partners' Investments | 36,611 | 37,626 | |||||
| Proceeds from Issuance of Common Units, Net of Offering Costs | — | 412,741 | |||||
| Distribution of Proceeds | — | (407,971 | ) | ||||
| Distributions to Unitholders | (13,094 | ) | — | ||||
| Proceeds from Revolver | 33,500 | — | |||||
| Payment of Revolver Fees | — | (685 | ) | ||||
| Net Cash Provided By Financing Activities | 57,017 | 41,711 | |||||
| Net Increase (Decrease) in Cash | 1,044 | (2,020 | ) | ||||
| Cash at Beginning of Period | 161 | 9,368 | |||||
| Cash at End of Period | $ | 1,205 | $ | 7,348 | |||
Development Companies Jointly Owned by CONE Midstream Partners LP and CONE Gathering LLC
Operating Income Summary, Selected Operating Statistics and Capital Investment
(in thousands)
(unaudited)
| Three Months Ended September 30, 2015 | |||||||||||||||
| Development Company | |||||||||||||||
| Anchor | Growth | Additional | TOTAL | ||||||||||||
| Income Summary | |||||||||||||||
| Revenue | $ | 40,327 | $ | 3,467 | $ | 9,959 | $ | 53,753 | |||||||
| Expenses | 14,647 | 1,881 | 3,611 | 20,139 | |||||||||||
| Net Income | 25,680 | 1,586 | 6,348 | 33,614 | |||||||||||
| Less: Net Income Attributable to Noncontrolling Interest | 6,420 | 1,506 | 6,031 | 13,957 | |||||||||||
| Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP | $ | 19,260 | $ | 80 | $ | 317 | $ | 19,657 | |||||||
| Operating Statistics - Gathered Volumes | |||||||||||||||
| Dry Gas (BBtu/d) | 480 | 82 | 6 | 568 | |||||||||||
| Wet Gas (BBtu/d) | 348 | 10 | 207 | 565 | |||||||||||
| Condensate (MMcfe/d) | 7 | — | 16 | 23 | |||||||||||
| Total Gathered Volumes | 835 | 92 | 229 | 1,156 | |||||||||||
| Total Volumes Net to CONE Midstream Partners LP | 626 | 5 | 11 | 642 | |||||||||||
| Capital Investment | |||||||||||||||
| Maintenance Capital | $ | 2,990 | $ | 346 | $ | 628 | $ | 3,964 | |||||||
| Expansion Capital | 45,108 | 2,202 | 43,507 | 90,817 | |||||||||||
| Total Capital Investment | $ | 48,098 | $ | 2,548 | $ | 44,135 | $ | 94,781 | |||||||
| Capital Investment Net to CONE Midstream Partners LP | |||||||||||||||
| Maintenance Capital | $ | 2,243 | $ | 17 | $ | 31 | $ | 2,291 | |||||||
| Expansion Capital | 33,831 | 110 | 2,175 | 36,116 | |||||||||||
| Total Capital Investment Net to CONE Midstream Partners LP | $ | 36,074 | $ | 127 | $ | 2,206 | $ | 38,407 | |||||||
Development Companies Jointly Owned by CONE Midstream Partners LP and CONE Gathering LLC
Operating Income Summary, Selected Operating Statistics and Capital Investment
(in thousands)
(unaudited)
| Three Months Ended September 30, 2014 | |||||||||||||||
| Development Company | |||||||||||||||
| Anchor | Growth | Additional | TOTAL (1) | ||||||||||||
| Income Summary | |||||||||||||||
| Revenue | $ | 31,260 | $ | 2,589 | $ | 1,431 | $ | 35,280 | |||||||
| Expenses | 13,736 | 1,599 | 861 | 16,196 | |||||||||||
| Net Income | 17,524 | 990 | 570 | 19,084 | |||||||||||
| Less: Net Income Attributable to Noncontrolling Interest | 42 | 36 | 4 | 82 | |||||||||||
| Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP | $ | 17,482 | $ | 954 | $ | 566 | $ | 19,002 | |||||||
| Operating Statistics - Gathered Volumes | |||||||||||||||
| Dry Gas (BBtu/d) | 415 | 55 | — | 470 | |||||||||||
| Wet Gas (BBtu/d) | 258 | — | 31 | 289 | |||||||||||
| Condensate (MMcfe/d) | 9 | — | — | 9 | |||||||||||
| Total Gathered Volumes | 682 | 55 | 31 | 768 | |||||||||||
| Total Volumes Net to CONE Midstream Partners LP | 512 | 3 | 2 | 517 | |||||||||||
| Capital Investment | |||||||||||||||
| Maintenance Capital | $ | 1,634 | $ | 8 | $ | 2 | $ | 1,644 | |||||||
| Expansion Capital | 25,045 | 3,836 | 33,655 | 62,536 | |||||||||||
| Total Capital Investment | $ | 26,679 | $ | 3,844 | $ | 33,657 | $ | 64,180 | |||||||
| Capital Investment Net to CONE Midstream Partners LP | |||||||||||||||
| Maintenance Capital | $ | 1,226 | $ | — | $ | — | $ | 1,226 | |||||||
| Expansion Capital | 18,784 | 192 | 1,683 | 20,659 | |||||||||||
| Total Capital Investment Net to CONE Midstream Partners LP | $ | 20,010 | $ | 192 | $ | 1,683 | $ | 21,885 | |||||||
(1) | Total consists of the 100% activity of the three Development Companies (Anchor, Growth and Additional) which CONE Midstream Partners LP owns a controlling interest of 75%, 5% and 5%, respectively. Other systems that were part of the Predecessor, CONE Gathering LLC, that have been included in the Historical Financial statements as the Predecessor are excluded from the table above, as these systems are not included in the consolidated operations of the Partnership. |