Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 04, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CONE Midstream Partners LP | |
Entity Central Index Key | 1,610,418 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 34,422,212 | |
Subordinated Units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 29,163,121 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Revenue | |||
Gathering revenue — related party | $ 58,958 | $ 62,248 | |
Total Revenue | 58,958 | 62,248 | |
Expenses | |||
Operating expense — third party | 6,633 | 8,674 | |
Operating expense — related party | 7,628 | 8,344 | |
General and administrative expense — third party | 1,139 | 993 | |
General and administrative expense — related party | 2,936 | 1,684 | |
Pipe revaluation | 673 | 0 | |
Depreciation expense | 5,671 | 4,839 | |
Interest expense | 1,038 | 419 | |
Total Expense | 25,718 | 24,953 | |
Net Income | 33,240 | 37,295 | |
Less: Net income attributable to noncontrolling interest | 3,173 | 12,505 | |
Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP | 30,067 | 24,790 | |
Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP | 30,067 | 24,790 | |
Less: General partner interest in net income, including incentive distribution rights | 1,129 | 496 | |
Limited partner interest in net income | $ 28,938 | $ 24,294 | |
Net income per limited partner unit - Basic (in dollars per unit) | $ 0.46 | $ 0.42 | |
Net income per limited partner unit - Diluted (in dollars per unit) | $ 0.45 | $ 0.42 | |
Limited partner units outstanding - Basic (in shares) | 63,566 | 58,343 | |
Limited partner units outstanding - Diluted (in shares) | 63,617 | 58,365 | |
Cash distributions declared per unit (in dollars per share) | [1] | $ 0.2821 | $ 0.2450 |
[1] | Represents the cash distributions declared during the month following the end of each respective quarterly period. See Note 16. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash | $ 6,018 | $ 6,421 |
Receivables — related party (Note 6) | 22,892 | 22,434 |
Other current assets | 2,408 | 2,181 |
Total Current Assets | 31,318 | 31,036 |
Property and Equipment: | ||
Property and equipment (Note 7) | 944,672 | 930,732 |
Less — accumulated depreciation | 57,990 | 52,172 |
Property and Equipment — Net | 886,682 | 878,560 |
Other assets (Note 8) | 8,016 | 8,961 |
TOTAL ASSETS | 926,016 | 918,557 |
Current Liabilities: | ||
Accounts payable | 18,109 | 18,007 |
Accounts payable — related party (Note 9) | 5,510 | 8,289 |
Total Current Liabilities | 23,619 | 26,296 |
Other Liabilities: | ||
Revolving credit facility (Note 10) | 162,000 | 167,000 |
Total Liabilities | 185,619 | 193,296 |
Partners' Capital: | ||
General partner interest | (1,852) | (2,311) |
Partners' capital attributable to CONE Midstream Partners LP | 362,018 | 350,055 |
Noncontrolling interest | 378,379 | 375,206 |
Total Partners' Capital | 740,397 | 725,261 |
TOTAL LIABILITIES AND PARTNERS' CAPITAL | 926,016 | 918,557 |
Common units (34,420,012 units issued and outstanding at March 31, 2017 and 34,363,371 units issued and outstanding at December 31, 2016) | ||
Partners' Capital: | ||
Limited partners' capital | 424,526 | 418,352 |
Subordinated units (29,163,121 units issued and outstanding at March 31, 2017 and December 31, 2016) | ||
Partners' Capital: | ||
Limited partners' capital | $ (60,656) | $ (65,986) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Mar. 31, 2017 | Dec. 31, 2016 |
Common Units | ||
Common units issued | 34,420,012 | 34,363,371 |
Common units outstanding | 34,420,012 | 34,363,371 |
Subordinated Units | ||
Common units issued | 29,163,121 | 29,163,121 |
Common units outstanding | 29,163,121 | 29,163,121 |
CONSOLIDATED STATEMENTS OF PART
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL AND OTHER EQUITY - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Total | Total Capital Attributable to Partners | Total Capital Attributable to PartnersLimited PartnersCommon Units | Total Capital Attributable to PartnersLimited PartnersSubordinated Units | Total Capital Attributable to PartnersGeneral Partner | Noncontrolling Interest |
Partners' Capital, beginning balance at Dec. 31, 2016 | $ 725,261 | $ 350,055 | $ 418,352 | $ (65,986) | $ (2,311) | $ 375,206 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Net income | 33,240 | 30,067 | 15,664 | 13,274 | 1,129 | 3,173 |
General partner and noncontrolling interest holder activity | 28 | 28 | 28 | |||
Quarterly distributions to unitholders | (18,004) | (18,004) | (9,362) | (7,944) | (698) | |
Unit-based compensation | 283 | 283 | 283 | |||
Vested units withheld for unitholder taxes | (411) | (411) | (411) | |||
Partners' Capital, ending balance at Mar. 31, 2017 | $ 740,397 | $ 362,018 | $ 424,526 | $ (60,656) | $ (1,852) | $ 378,379 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 33,240 | $ 37,295 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense and amortization of debt issuance costs | 5,713 | 4,880 |
Unit-based compensation | 283 | 136 |
Pipe revaluation | 673 | 0 |
Other | 83 | 283 |
Changes in assets and liabilities: | ||
Receivables — related party | (458) | 7,851 |
Other current and non-current assets | 3 | 369 |
Accounts payable | (2,386) | (9,471) |
Accounts payable — related party | (2,975) | (163) |
Net Cash Provided by Operating Activities | 34,176 | 41,180 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (11,192) | (24,386) |
Net Cash Used in Investing Activities | (11,192) | (24,386) |
Cash Flows from Financing Activities: | ||
Partner and noncontrolling interest holder activity | 28 | 10,823 |
Quarterly distributions to unitholders | (18,004) | (14,061) |
Net (payments on) proceeds from revolving credit facility | (5,000) | 500 |
Vested units withheld for unitholders taxes | (411) | 0 |
Net Cash Used In Financing Activities | (23,387) | (2,738) |
Net (Decrease) Increase in Cash | (403) | 14,056 |
Cash at Beginning of Period | 6,421 | 217 |
Cash at End of Period | $ 6,018 | $ 14,273 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS CONE Midstream Partners LP (the “ Partnership") is a master limited partnership formed in May 2014 by CONSOL Energy Inc. (NYSE: CNX) ( “ CONSOL”) and Noble Energy, Inc. (NYSE: NBL) ( “ Noble Energy”), whom we refer to collectively as our Sponsors, primarily 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. The Partnership's general partner is CONE Midstream GP LLC (our “ general partner”), a wholly owned subsidiary of CONE Gathering LLC ( “ CONE Gathering”). CONE Gathering, a Delaware limited liability company, is a joint venture formed by our Sponsors in September 2011. In order to effectively manage our business we have divided our current midstream assets among three operating segments that we refer to as our “Anchor Systems,” “Growth Systems” and “Additional Systems” based on their relative current cash flows, growth profiles, capital expenditure requirements and the timing of their development. • Our Anchor Systems include our most developed midstream systems that generate the largest portion of our current cash flows, which includes our three primary midstream systems (the McQuay System, the Majorsville System and the Mamont System) and related assets. • Our Growth Systems are primarily located in the dry gas regions of our dedicated acreage that are generally in earlier phases of development and require substantial future expansion capital expenditures to materially increase production, which would primarily be funded by our Sponsors in proportion to CONE Gathering's 95% retained ownership interest. • Our Additional Systems include several gathering systems primarily located in the wet gas regions of our dedicated acreage that we expect will require lower levels of expansion capital investment relative to our Growth Systems. The substantial majority of capital investment on these systems would primarily be funded by our Sponsors in proportion to CONE Gathering's 95% retained ownership interest. On September 30, 2014 , in connection with the closing of the Partnership's initial public offering ( “ IPO”), CONE Gathering contributed to the Partnership a 75% controlling interest in the Anchor Systems, a 5% controlling interest in the Growth Systems and a 5% controlling interest in the Additional Systems. On November 16, 2016, the Partnership acquired the remaining 25% noncontrolling interest in the Anchor Systems from CONE Gathering (the “Acquisition”). Accordingly, at December 31, 2016 and March 31, 2017, the Partnership owned a 100% controlling limited partner interest in the Anchor Systems and a 5% controlling limited partner interest in each of the Growth and Additional Systems. In order to maintain operational flexibility, our operations are conducted through, and our operating assets are owned by, our operating subsidiaries. However, neither we nor our operating subsidiaries have any employees. Our general partner has the sole responsibility for providing the personnel necessary to conduct our operations, whether through directly hiring employees or by obtaining the services of personnel employed by our Sponsors or others. All of the personnel that conduct our business are employed or contracted by our general partner and its affiliates, including our Sponsors, but we sometimes refer to these individuals as our employees because they provide services directly to us. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Use of Estimates The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ( “ GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and various disclosures. Actual results could differ from those estimates, which are evaluated on an ongoing basis, utilizing historical experience and other methods considered reasonable under the particular circumstances. Although these estimates are based on management’s best available knowledge at the time, changes in facts and circumstances or discovery of new facts or circumstances may result in revised estimates and actual results may differ from these estimates. Effects on the Partnership’s business, financial position and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revision become known. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the accompanying consolidated financial statements have been included. The balance sheet at December 31, 2016 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Principles of Consolidation The consolidated financial statements include the accounts of the Partnership and all of its controlled subsidiaries, including 100% of each of the Anchor Systems, Growth Systems and Additional Systems. Although the Partnership has less than a 100% economic interest in the Growth and Additional Systems, each are consolidated fully with the results of the Partnership for all periods following the IPO. However, after adjusting for noncontrolling interests, net income attributable to general and limited partner ownership interests in the Partnership reflect only that portion of net income that is attributable to the Partnership's unitholders. As a result of the Acquisition, net income attributable to general and limited partner ownership interests in the Partnership includes 100% of the results of the Anchor Systems for periods subsequent to November 16, 2016. Transactions between the Partnership and its Sponsors have been identified in the consolidated financial statements as transactions between related parties and are discussed in Note 4. Jumpstart Our Business Startups Act ( “ JOBS Act ” ) Under the JOBS Act, for as long as the Partnership remains an “emerging growth company” as defined in the JOBS Act, we may take advantage of certain exemptions from the Securities and Exchange Commission's ( “ SEC”) reporting requirements that are applicable to other public companies that are not emerging growth companies, including not being required to provide an auditor’s attestation report on management’s assessment of the effectiveness of its system of internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and seeking unitholder approval of any golden parachute payments not previously approved. We may take advantage of these reporting exemptions until we are no longer an emerging growth company. We continue to be an emerging growth company at March 31, 2017 . The Partnership will remain an emerging growth company for up to five years from the date of our IPO (through December 31, 2019), although we will lose that status sooner if: • we have more than $1.0 billion of revenues in a fiscal year; • the limited partner interests held by non-affiliates have a market value of more than $700 million as of the last business day of our most recently completed second fiscal quarter, which determination shall be made as of the last day of such fiscal year; or • we issue more than $1.0 billion of non-convertible debt over a three -year period. The JOBS Act also provides that an emerging growth company can delay adopting new or revised accounting standards until such time as those standards apply to private companies. The Partnership has irrevocably elected to “opt out” of this exemption and, therefore, is and will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. Revenue Recognition Our revenues primarily consist of fees, which we charge on a per unit basis, for gathering natural gas that is produced by our Sponsors. We recognize revenue when services have been rendered, the prices are fixed or determinable, and collectibility is reasonably assured. All fees we receive are currently recorded in gathering revenue — related party in our consolidated financial statements. Cash Cash includes cash on hand and on deposit at banking institutions. Receivables Receivables are recorded at the invoiced amount and do not bear interest. When applicable, we reserve for specific accounts receivable when it is probable that all or a part of an outstanding balance will not be collected. Collectability is determined based on terms of sale, credit status of customers and various other circumstances. We regularly review collectability and establish or adjust the allowance as necessary using the specific identification method. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There were no reserves for uncollectible amounts at March 31, 2017 or December 31, 2016 . Fair Value Measurement The Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification ( “ ASC”) Topic 820, Fair Value Measurements and Disclosures, clarifies the definition of fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. This guidance also relates to all nonfinancial assets and liabilities that are not recognized or disclosed on a recurring basis (e.g., the initial recognition of asset retirement obligations and impairments of long‑lived assets). The fair value is the price that we estimate we would receive upon selling an asset or that we would pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to prioritize input to valuation techniques used to estimate fair value. An asset or liability subject to the fair value requirements is categorized within the hierarchy based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The highest priority (Level 1) is given to unadjusted quoted market prices in active markets for identical assets or liabilities, and the lowest priority (Level 3) is given to unobservable inputs. Level 2 inputs are data, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. The carrying values on our balance sheet of our current assets and liabilities approximate fair values due to their short maturities. The carrying value of our revolving credit facility approximates fair value as the facility bears interest at a variable, market rate that resets periodically. Property and Equipment Property and equipment is recorded at cost upon acquisition and is depreciated on a straight-line basis over their estimated useful lives or over the lease terms of the assets. Expenditures which extend the useful lives of existing property and equipment are capitalized. When properties are retired or otherwise disposed, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is recognized as a gain or loss. We routinely assess whether impairment indicators arise during any given quarter and have processes in place to ensure that we become aware of such indicators. Impairment indicators include, but are not limited to, sustained decreases in commodity prices, a decline in customer well results and lower throughput forecasts, and increases in construction or operating costs. For such long-lived assets, impairment exists when the carrying amount of an asset or group of assets exceeds our estimates of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or group of assets. If the carrying amount of the long-lived asset(s) is not recoverable, based on the estimated future undiscounted cash flows, the impairment loss would be measured as the excess of the asset’s carrying amount over its estimated fair value. In the event that impairment indicators exist, we conduct an impairment test. Fair value represents the estimated price between market participants to sell an asset in the principal or most advantageous market for the asset, based on assumptions a market participant would make. When warranted, management assesses the fair value of long-lived assets using commonly accepted techniques and may use more than one source in making such assessments. Sources used to determine fair value include, but are not limited to, recent third-party comparable sales, internally developed discounted cash flow analyses and analyses from outside advisors. Significant changes, such as the condition of an asset or management’s intent to utilize the asset, generally require management to reassess the cash flows related to long-lived assets. No property and equipment impairments were identified during the periods presented in the accompanying consolidated financial statements. Environmental Matters We are subject to various federal, state and local laws and regulations relating to the protection of the environment. Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and do not contribute to current or future revenue generation, are expensed. Liabilities are recorded when environmental assessments and/or clean-ups are probable, and the costs can be reasonably estimated. At this time, we are unable to assess the timing and/or effect of potential liabilities related to greenhouse gas emissions or other environmental issues. As of March 31, 2017 and December 31, 2016 , we had no material environmental matters that required the recognition of a separate liability or specific disclosure. Asset Retirement Obligations Our gathering pipelines and compressor stations have an indeterminate life. If properly maintained, they will operate for an indeterminate period as long as supply and demand for natural gas exists, which we expect for the foreseeable future. Accordingly, any retirement obligations associated with such assets cannot be estimated. A liability for asset retirement obligations will be recorded only if and when a future retirement obligation with a determinable life exists and can be estimated. We have not recorded any liabilities for asset retirement obligations at March 31, 2017 or December 31, 2016 . Variable Interest Entities Each of the Anchor, Growth and Additional Systems (the “ Limited Partnerships”) is also a limited partnership and a variable interest entity ( “ VIE”). These VIEs correspond with the manner in which we report our segment information in Note 14–Segment Information, which also includes information regarding the Partnership's involvement with each of these VIEs and their relative contributions to our financial position, operating results and cash flows. The Partnership fully consolidates each of the Limited Partnerships through its ownership of CONE Midstream Operating Company LLC (the “ Operating Company”). The Operating Company, through its general partner ownership interest in each of the Anchor, Growth and Additional Limited Partnerships, is considered to be the primary beneficiary for accounting purposes and has the power to direct all substantive strategic and day-to-day operational decisions of the Limited Partnerships. Equity Compensation Equity compensation expense for all unit-based compensation awards is based on the grant date fair value estimated in accordance with the provisions of the Stock Compensation Topic of the FASB Accounting Standards Codification. We recognize unit-based compensation costs on a straight-line basis over the requisite service period of an award, which is generally the same as the award's vesting term. See Note 15–Long Term Incentive Plan, for further discussion. Income Taxes We are treated as a partnership for federal and state income tax purposes, with each partner being separately taxed on its share of the Partnership's taxable income. Accordingly, no provision for federal or state income taxes has been recorded in the Partnership's consolidated financial statements for any period presented in the accompanying consolidated financial statements. Cash Distributions Our partnership agreement requires that we distribute all of our available cash within 45 days after the end of each quarter to unitholders of record on the applicable record date. This requirement forms the basis of our cash distribution policy and reflects a basic judgment that our unitholders will be better served by distributing our available cash rather than retaining it because, among other reasons, we believe we will generally finance any expansion capital expenditures from external financing sources. Under our current cash distribution policy, we intend to make a minimum quarterly distribution to the holders of our common units and subordinated units of $0.2125 per unit, or $0.85 per unit on an annualized basis, to the extent we have sufficient available cash after the establishment of cash reserves and the payment of costs and expenses, including the payment of expenses to our general partner. However, other than the requirement in our partnership agreement to distribute all of our available cash each quarter, we have no legal obligation to make quarterly cash distributions in this or any other amount, and the board of directors of our general partner has considerable discretion to determine the amount of our available cash each quarter. In addition, the board of directors of our general partner may change our cash distribution policy at any time, subject to the requirement in our partnership agreement to distribute all of our available cash quarterly. Generally, our available cash is the sum of (i) all cash on hand at the end of a quarter after the payment of our expenses and the establishment of cash reserves and (ii) if the board of directors of our general partner so determines, all or any portion of additional cash on hand resulting from working capital borrowings made after the end of the quarter. Incentive Distribution Rights Incentive distribution rights ( “ IDRs”) represent the right to receive an increasing percentage, up to a maximum of 48.0% (which doesn't include the 2% general partner interest), of quarterly distributions of available cash from operating surplus after the minimum quarterly distribution and the target distribution levels described in the table below have been achieved. All of the IDRs are currently held by our general partner. Our general partner may transfer the IDRs separately from its general partner interest. See Note 3–Net Income Per Limited Partner Unit for additional details regarding achievement of target distribution levels. Percentage Allocations of Available Cash from Operating Surplus The following table illustrates the percentage allocations of available cash from operating surplus between the unitholders and our general partner based on the specified target distribution levels. The amounts set forth under “Marginal Percentage Interest in Distributions” are the percentage interests of our general partner, as holder of our IDRs, and the unitholders in any available cash from operating surplus we distribute up to and including the corresponding amount in the column “Total Quarterly Distribution Per Unit Target Amount.” The percentage interests shown for our unitholders and our general partner for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests set forth below for our general partner include its 2% general partner interest and assume that our general partner has contributed any additional capital necessary to maintain its 2% general partner interest, our general partner has not transferred its incentive distribution rights and that there are no arrearages on common units. Marginal Percentage Interest in Distributions Distribution Targets Total Quarterly Distribution Per Unit Target Amount Unitholders General Partner (including IDRs) Minimum Quarterly Distribution $0.2125 98% 2% First Target Distribution Above $0.2125 up to $0.24438 98% 2% Second Target Distribution Above $0.24438 up to $0.26563 85% 15% Third Target Distribution Above $0.26563 up to $0.31875 75% 25% Thereafter Above $0.31875 50% 50% Subordinated Units Our partnership agreement provides that, during the subordination period, the common unitholders will have the right to receive distributions of available cash from operating surplus each quarter in an amount equal to $0.2125 per unit, which is defined in our partnership agreement as the minimum quarterly distribution, plus any arrearages in the payment of the minimum quarterly distribution on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. The practical effect of the subordinated units is to increase the likelihood that, during the subordination period, there will be available cash to be distributed on the common units. The subordination period will end, and the subordinated units will convert to common units, on a one-for-one basis, when certain distribution requirements, as defined in the partnership agreement, have been met. Our Sponsors currently own 29,163,121 subordinated units, which represents all of our subordinated units. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current reporting classifications with no effect on previously reported net income, partners' capital or operating cash flows. Recent Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update ( “ ASU”) 2017-01–Business Combinations (Topic 805): Clarifying the Definition of a Business, which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The updated guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets is not a business. ASU 2017-01 is effective for annual reporting periods beginning after December 31, 2017 and interim periods therein. The Partnership does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In December 2016, the FASB issued ASU 2016-19–Technical Corrections and Improvements, which covers a wide range of Topics in the ASC. The amendments in this ASU represent changes to clarify, correct errors, or make minor improvements to the ASC, making it easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments generally fall into one of the following categories: amendments related to differences between original guidance and the ASC, guidance clarification and reference corrections, simplification, or minor improvements. Most of the amendments in ASU 2016-19 do not require transition guidance and are effective immediately. In August 2016, the FASB issued ASU 2016-15–Classification of Certain Cash Receipts and Cash Payments (Topic 230). ASU 2016-15 addresses the existing diversity in practice of how several specific cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows. ASU 2016-15 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. The Partnership does not expect the adoption of this guidance will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02–Leases (Topic 842), which is intended to improve financial reporting about leasing transactions. The ASU will require organizations (“lessees”) that lease assets with terms of more than 12 months to recognize the assets and liabilities for the rights and obligations created by those leases on the balance sheet. Organizations that own the assets leased by lessees (“lessors”) will remain largely unchanged from current GAAP. In addition, the ASU will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The effective date of this ASU is for fiscal years beginning after December 31, 2018 and interim periods within that year. We are currently evaluating the impact that this standard will have on our financial statements and financial covenants with lenders; however, we do not believe this standard will materially adversely impact our existing credit agreements. In May 2014, the FASB issued ASU 2014-09–Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The objective of the amendments in this update is to improve financial reporting by creating common revenue recognition guidance under both U.S. GAAP and International Financial Reporting Standards ( “ IFRS”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and should disclose sufficient information, both qualitative and quantitative, to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The following updates to Topic 606 were made during 2016: • In March 2016, the FASB updated Topic 606 by issuing ASU 2016-08–Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies how an entity determines whether it is a principal or an agent for goods or services promised to a customer as well as the nature of the goods or services promised to their customers. • In April 2016, the FASB issued ASU 2016-10–Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which seeks to address implementation issues in the areas of identifying performance obligations and licensing. • In May 2016, the FASB issued ASU 2016-12–Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients. The update, which was issued in response to feedback received by the FASB-IASB joint revenue recognition transition resource group, seeks to address implementation issues in the areas of collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. After considering the FASB's issuance of a standard that delayed application of Topic 606 by one year, the new standards are effective for annual reporting periods beginning after December 15, 2017, with the option to adopt as early as annual reporting periods beginning after December 15, 2016. Management continues to evaluate the impacts that these standards will have on the Partnership's financial statements; however, the Partnership anticipates using the modified retrospective approach at adoption as it relates to ASU 2014-09. |
NET INCOME PER LIMITED PARTNER
NET INCOME PER LIMITED PARTNER AND GENERAL PARTNER INTEREST | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
NET INCOME PER LIMITED PARTNER AND GENERAL PARTNER INTEREST | NET INCOME PER LIMITED PARTNER UNIT We allocate net income between our general partner and limited partners using the two-class method, under which we allocate net income to our limited partners, our general partner and the holders of our IDRs in accordance with the terms of our partnership agreement. We also allocate any earnings in excess of distributions to our limited partners, our general partner and the holders of the IDRs in accordance with the terms of our partnership agreement. We allocate any distributions in excess of earnings for the period to our general partner and our limited partners based on their respective proportionate ownership interests in us, after taking into account distributions to be paid with respect to the IDRs, as set forth in our partnership agreement. The Second and Third Target Distributions were reached for the cash flow quarters ended March 31, 2016 and December 31, 2016, respectively, which were paid within 45 days following the ends of these quarters. All quarterly distributions prior to March 31, 2016 were paid in accordance with the First Target Distribution. The Partnership calculates historical earnings per unit under the two-class method and allocates the earnings or losses of a transferred business before the date of a dropdown transaction entirely to the general partner. If applicable, the previously reported earnings per unit of the limited partners would not change as a result of a dropdown transaction. Diluted net income per limited partner unit reflects the potential dilution that could occur if securities or agreements to issue common units, such as awards under the long-term incentive plan, were exercised, settled or converted into common units. When it is determined that potential common units resulting from an award subject to performance or market conditions should be included in the diluted net income per limited partner unit calculation, the impact is calculated by applying the treasury stock method. There were 50,905 and 11,314 phantom units that were not included in the calculation for the three months ended March 31, 2017 and 2016 , respectively, because the effect would have been antidilutive. The following table illustrates the Partnership’s calculation of net income per unit for common and subordinated partner units: Quarter Ended March 31, (in thousands, except per unit information) 2017 2016 Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP $ 30,067 $ 24,790 Less: General partner interest in net income, including incentive distribution rights 1,129 496 Limited partner interest in net income $ 28,938 $ 24,294 Net income allocable to common units - Basic and Diluted $ 15,664 $ 12,151 Net income allocable to subordinated units - Basic and Diluted 13,274 12,143 Limited partner interest in net income - Basic and Diluted $ 28,938 $ 24,294 Weighted average limited partner units outstanding — Basic Common units 34,403 29,180 Subordinated units 29,163 29,163 Total 63,566 58,343 Weighted average limited partner units outstanding — Diluted Common units 34,454 29,202 Subordinated units 29,163 29,163 Total 63,617 58,365 Net income per limited partner unit — Basic Common units $ 0.46 $ 0.42 Subordinated units $ 0.46 $ 0.42 Total $ 0.46 $ 0.42 Net income per limited partner unit — Diluted Common units $ 0.45 $ 0.42 Subordinated units $ 0.46 $ 0.42 Total $ 0.45 $ 0.42 |
RELATED PARTY
RELATED PARTY | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY | RELATED PARTY In the ordinary course of business, the Partnership has transactions with related parties that result in affiliate transactions. During each of the periods presented, we engaged in related party transactions with each of our Sponsors, CONSOL (and certain of its subsidiaries) and Noble Energy, to whom we provide natural gas gathering and compression services pursuant to the terms of our gas gathering agreements. Operating expense — related party consisted primarily of $7.6 million and $8.3 million of charges from our Sponsors for the three months ended March 31, 2017 and 2016 , respectively. In each period, $4.4 million of operating expense — related party was related to electrically-powered compression, which is reimbursed by the Sponsors pursuant to their respective Gathering Agreements. Sponsor-related charges within general and administrative expense – related party consisted of the following: Three Months Ended (in thousands) 2017 2016 CONSOL $ 2,764 $ 1,529 Noble Energy 172 155 Total General and Administrative Expense — Related Party $ 2,936 $ 1,684 Omnibus Agreement Concurrent with the closing of the IPO, we entered into an omnibus agreement with CONSOL, Noble Energy, CONE Gathering and our general partner that addresses the following matters: • our payment of an annually-determined administrative support fee, which will total $0.9 million for the year ending December 31, 2017, for the provision of certain services by CONSOL and its affiliates; • our payment of an annually-determined administrative support fee, which will total $0.7 million for the year ending December 31, 2017, for the provision of certain executive services by CONSOL and its affiliates; • our payment of an annually-determined administrative support fee, which will total $0.3 million for the year ending December 31, 2017, for the provision of certain executive services by Noble Energy and its affiliates; • our obligation to reimburse our Sponsors for all other direct or allocated costs and expenses incurred by our Sponsors in providing general and administrative services (which reimbursement is in addition to certain expenses of our general partner and its affiliates that are reimbursed under our partnership agreement); • our right of first offer to acquire (i) CONE Gathering’s retained interests in each of our Anchor Systems, Growth Systems and Additional Systems, (ii) CONE Gathering’s other ancillary midstream assets and (iii) any additional midstream assets that CONE Gathering develops; and • an indemnity from CONE Gathering for liabilities associated with the use, ownership or operation of our assets, including environmental liabilities, to the extent relating to the period of time prior to the closing of the IPO; and our obligation to indemnify CONE Gathering for events and conditions associated with the use, ownership or operation of our assets that occur after the closing of the IPO, including environmental liabilities. So long as CONE Gathering controls our general partner, the omnibus agreement will remain in full force and effect. If CONE Gathering ceases to control our general partner, either party may terminate the omnibus agreement, provided that the indemnification obligations will remain in full force and effect in accordance with their terms. Operational Services Agreement Concurrent with the closing of the IPO, we entered into an operational services agreement with CONSOL. On December 1, 2016, in connection with the consummation of our Sponsors' Exchange Agreement (the “ Exchange Agreement”), the operational services agreement was amended and restated. Consistent with the original operational services agreement, under the amended and restated operating agreement, CONSOL provides certain operational services to us in support of our gathering pipelines and dehydration, treating and compressor stations and facilities, including routine and emergency maintenance and repair services, routine operational activities, routine administrative services, construction and related services and such other services as we and CONSOL may mutually agree upon from time to time. CONSOL prepares and submits for our approval a maintenance, operating and capital budget on an annual basis. CONSOL submits actual expenditures for reimbursement on a monthly basis, and we reimburse CONSOL for any direct third-party costs incurred by CONSOL in providing these services. Gathering Agreements Upon consummation of the Exchange Agreement, we entered into new fixed-fee gathering agreements with each of CNX Gas Company LLC, a wholly owned subsidiary of CONSOL ( “ CNX Gas”), and Noble Energy that replaced the gathering agreements that had been in place since the IPO. In addition to incorporating changes related to the Sponsors' termination of their upstream joint venture and Joint Development Agreement, the new gathering agreements provide more clarity on each Sponsor's acreage dedication to the Partnership and related releases and allow each Sponsor to independently advance its own development program. We also anticipate that the new gathering agreements will simplify the decision making process relating to the Partnership's ability to gather third party gas. Under the new gathering agreements, we continue to receive a fee based on the type and scope of the midstream services we provide, summarized as follows: • For the services we provide with respect to natural gas from the Marcellus Shale formation that does not require downstream processing, or dry gas, we will receive a fee of $0.42 per MMBtu in 2017. • For the services we provide with respect to the natural gas that requires downstream processing, or wet gas, we will receive in 2017: • a fee of $0.289 per MMBtu in the Moundsville area (Marshall County, West Virginia); • a fee of $0.289 per MMBtu in the Pittsburgh International Airport area; and • a fee of $0.578 per MMBtu for all other areas in the dedication area. • For the services we provide to each of our Sponsors with respect to natural gas from the Utica Shale formation, we will receive a weighted average rate of $0.22 per MMBtu in 2017, which is consistent with the fees charged to date. • For 2017, our fee for condensate services will be $5.25 per Bbl in the Majorsville area and $2.627 per Bbl in the Moundsville area. Each of the foregoing fees will escalate by 2.5% on January 1 of each year, beginning on January 1, 2018. Notwithstanding the foregoing, from time to time, each of our Sponsors may request rate reductions under certain circumstances, which are reviewed by the board of directors of our general partner, with oversight, as our board of directors deems necessary, by our conflicts committee. No rate reduction arrangements are currently active. We will continue to gather, compress, dehydrate and deliver all of our Sponsors’ dedicated natural gas in the Marcellus Shale on a first-priority basis and to gather, inject, stabilize and store all of our Sponsors’ dedicated condensate on a first-priority basis, with the exception of the following: • until December 1, 2018, CNX Gas will receive first-priority service in our Majorsville system with respect to a certain volume of production (revised bi-annually) and any excess production will receive second-priority service; and • until December 1, 2018, Noble Energy will receive first-priority service in our McQuay system with respect to a certain volume of production (revised bi-annually) and any excess production will receive second-priority service. Each of our Sponsors provides us with quarterly updates on its drilling and development operations, which include detailed descriptions of the drilling plans, production details and well locations for the following 24 months and a three to ten year plan that includes more general development plans. In addition, we regularly meet with our Sponsors to discuss our current plans to timely construct the necessary facilities to be able to provide midstream services to them on our dedicated acreage. In the event that we do not perform our obligations under a gathering agreement, CNX Gas or Noble Energy, as applicable, will be entitled to certain rights and procedural remedies thereunder, including the temporary and/or permanent release from dedication discussed below and indemnification from us. In addition to the natural gas and condensate that is produced from the dedicated acreage, each of our Sponsors may elect to dedicate non-Marcellus Shale properties located in the dedication area to us in which the Sponsor has an interest. If a Sponsor elects to dedicate any such property, then that Sponsor will propose a fee for the associated midstream services we would provide. So long as the proposed fee generates a rate of return consistent with the Sponsor’s existing gathering agreement on both incremental capital and operating expense associated with any expenditures necessary to gather gas from such property, any midstream services that we agree to provide will be on a second priority basis; second only to the first priority basis afforded to each of our Sponsors on their respective dedicated production. Throughput that we currently gather from Utica Shale wells operated by either one of our Sponsors is addressed in the new gathering agreements. While our gathering agreements run with the land and, subject to the exceptions described therein, are binding upon the transferee of any of our dedicated acreage, the agreements provide that each of our Sponsors may divest up to 25,000 net acres of its dedicated acreage (plus or minus the net of acreage acquired or divested within the dedicated area since our IPO) free of the dedication to us. The amount of net acreage that may be divested by each Sponsor free of the dedication will be increased by the amount, if any, of the net acreage acquired (or deemed to be acquired) by such Sponsor in the dedication area that will become automatically dedicated to us. For purposes of determining if acreage can be released free and clear of the dedications under our gathering agreements, the actual net acreage divested or acquired may be adjusted upwards or downwards based on the geographic location of such net acreage, the timing of the respective divestiture or acquisition and certain other conditions in the gas gathering agreements. There are no restrictions under our gathering agreements on a Sponsor’s ability to transfer acreage in the right of first offer ( “ ROFO”) area, and any transfer of a Sponsor’s acreage in the ROFO area will not be subject to our right of first offer. For additional information on the ROFO area, see Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations–How We Evaluate Our Operations–Throughput Volumes. Upon completion of its initial term in 2034, each of our gathering agreements will continue in effect from year to year until such time as the agreement is terminated by either us or the Sponsor party to such agreement on or before 180 days prior written notice. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 3 Months Ended |
Mar. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK The Sponsors accounted for all of the Partnership’s revenue in 2017 and 2016. Revenues attributable to each Sponsor were as follows for the periods presented: Three Months Ended March 31, (in thousands) 2017 2016 CONSOL $ 34,386 $ 31,799 Noble Energy 24,572 30,449 Total Revenue $ 58,958 $ 62,248 |
RECEIVABLES - RELATED PARTY
RECEIVABLES - RELATED PARTY | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
RECEIVABLES - RELATED PARTY | RECEIVABLES — RELATED PARTY Receivables consisted of the following: (in thousands) March 31, 2017 December 31, 2016 Gathering fees: CONSOL $ 11,295 $ 10,956 Noble Energy 8,368 8,268 Other 3,229 3,210 Total Receivables — Related Party $ 22,892 $ 22,434 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following: (in thousands) March 31, 2017 December 31, 2016 Estimated Useful Lives in Years Land $ 75,997 $ 72,878 N/A Gathering equipment 643,904 643,422 25 — 40 Compression equipment 170,824 169,681 30 — 40 Processing equipment 30,979 30,979 40 Assets under construction 22,968 13,772 N/A Total Property and Equipment $ 944,672 $ 930,732 Less: Accumulated depreciation Gathering equipment $ 41,825 $ 37,275 Compression equipment 11,651 10,590 Processing equipment 4,514 4,307 Total Accumulated Depreciation $ 57,990 $ 52,172 Property and Equipment, Net $ 886,682 $ 878,560 |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consisted of the following: (in thousands) March 31, 2017 December 31, 2016 Pipe stock $ 7,692 $ 8,596 Financing fees 245 286 Deposits 79 79 Total Other Assets $ 8,016 $ 8,961 In April 2017, the Partnership agreed to sell approximately $7.1 million of its existing pipe stock that was not dedicated to specific projects to an unrelated third party for an amount that was $0.7 million below its carrying value. Accordingly, we recorded a $0.7 million market value adjustment within the pipe revaluation caption in the accompanying consolidated statements of operations for the quarter ended March 31, 2017. The pipe that will be sold is within the Growth Systems reporting unit. |
ACCOUNTS PAYABLE - RELATED PART
ACCOUNTS PAYABLE - RELATED PARTY | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE - RELATED PARTY | ACCOUNTS PAYABLE — RELATED PARTY Related party payables consisted of the following: (in thousands) March 31, 2017 December 31, 2016 CONSOL: Expense reimbursements $ 1,134 $ 999 Capital expenditures reimbursements 1,343 1,148 General and administrative services 1,044 1,964 Operational expenditures reimbursements 401 395 Other reimbursement — 1,060 Due to CONSOL total $ 3,922 $ 5,566 Noble Energy: Capital expenditures reimbursements 1,105 1,105 General and administrative services 82 53 Operational expenditures reimbursements 401 401 Other reimbursement — 1,060 Due to Noble Energy total $ 1,588 $ 2,619 CONE Gathering LLC: Capital expenditures reimbursement to CONE Gathering LLC — 104 Due to CONE Gathering LLC total $ — $ 104 Total Accounts Payable — Related Party $ 5,510 $ 8,289 |
REVOLVING CREDIT FACILITY
REVOLVING CREDIT FACILITY | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY | REVOLVING CREDIT FACILITY We are party to a credit facility agreement which provides for a $250 million unsecured five year revolving credit facility that matures on September 30, 2019. Our revolving credit facility is available for working capital, capital expenditures, certain acquisitions, distributions, unit repurchases and other lawful partnership purposes. Borrowings under our revolving credit facility bear interest at our option at either: • the base rate, which is defined as the highest of (i) the federal funds rate plus 0.50% ; (ii) JP Morgan’s prime rate; or (iii) the daily LIBOR rate for a one month interest period plus 1.00% ; in each case, plus a margin varying from 0.125% to 1.00% , depending on our most recent consolidated total leverage ratio (as defined in the agreement governing our revolving credit facility) or our credit rating; or • the LIBOR rate plus a margin varying from 1.125% to 2.00% , in each case, depending on our most recent consolidated leverage ratio (as defined in the agreement governing our revolving credit facility) or our credit rating, as the case may be. Interest on base rate loans is payable quarterly. Interest on LIBOR loans is payable on the last day of each interest period or, in the case of interest periods longer than three months, every three months. The unused portion of our revolving credit facility is subject to a commitment fee ranging from 0.15% to 0.35% per annum depending on our most recent consolidated leverage ratio or our credit rating, as the case may be. The outstanding balances and LIBOR interest rates in effect (plus applicable margin) on our revolving credit facility are as follows for the dates presented. March 31, 2017 December 31, 2016 (in thousands, except percentages) Debt Interest Rate Debt Interest Rate Credit facility, due September 30, 2019 $ 162,000 2.50 % $ 167,000 2.26 % In addition, our revolving credit facility contains covenants and conditions that, among other things, limit (subject to certain exceptions) our ability to incur or guarantee additional debt, make cash distributions (though there will be an exception for distributions permitted under the partnership agreement, subject to certain customary conditions), incur certain liens or permit them to exist, make certain investments and acquisitions, enter into certain types of transactions with affiliates, merge or consolidate with another company, and transfer, sell or otherwise dispose of assets. We are also subject to covenants that require us to maintain certain financial ratios, the most important of which are as follows: • The ratio of (i) consolidated total funded debt (as defined in the agreement governing our revolving credit facility) as of the last day of each fiscal quarter to (ii) consolidated EBITDA (as defined in the agreement governing our revolving credit facility) for the four consecutive fiscal quarters ending on the last day of such fiscal quarter may not exceed (A) at any time other than during a qualified acquisition period (as defined in the agreement governing our revolving credit facility), 5.0 to 1.0 and (B) during a qualified acquisition period, 5.5 to 1.0. This consolidated leverage ratio is calculated as the total amount outstanding on our credit facility divided by EBITDA Attributable to General and Limited Partner Ownership Interest in the CONE Midstream Partners LP. The Partnership is in compliance with this financial covenant at March 31, 2017 . • The ratio of (i) consolidated EBITDA for the four consecutive fiscal quarters ending on the last day of each fiscal quarter to (ii) consolidated interest expense (as defined in the agreement governing our revolving credit facility) for such four consecutive fiscal quarters may not be less than 3.0 to 1.0. This consolidated interest coverage ratio is calculated as EBITDA Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP divided by total interest charges. The Partnership is in compliance with this financial covenant at March 31, 2017 . Based on our compliance with the financial covenants, the Partnership had $88.0 million , the maximum amount of revolving credit, available for borrowing at March 31, 2017 . As of March 31, 2017 , we had outstanding debt issuance costs of $0.4 million, net of accumulated amortization, which were incurred in connection with the issuance of our credit facility. The debt issuance costs are being amortized in interest expense through September 30, 2019, which is the maturity date of the credit facility. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION As of March 31, 2017 , we had a receivable of $2.4 million from CONE Gathering related to capital expenditures. Additionally, we had capital expenditures of $1.3 million and $1.1 million due to CONSOL and Noble Energy, respectively. We also paid $1.1 million in interest on our revolving credit facility during the quarter ended March 31, 2017. As of March 31, 2016 , we had $0.1 million in capital expenditures due to be reimbursed to CONSOL. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We may become involved in claims and other legal matters arising in the ordinary course of business. Although claims are inherently unpredictable, we are not aware of any matters that may have a material adverse effect on our business, financial position, results of operations or cash flows. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2017 | |
Leases, Operating [Abstract] | |
LEASES | LEASES We have entered into various non-cancelable operating leases, primarily related to compression facilities. Future minimum lease payments under operating leases as of March 31, 2017 are as follows: (in thousands) Minimum Lease Payments remainder of 2017 $ 3,791 2018 2,494 2019 1,068 2020 183 $ 7,536 Rental expense under operating leases was $1.9 million and $2.1 million for the three months ended March 31, 2017 and 2016 , respectively. These expenses are included within operating expense - third party on our consolidated statement of operations. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Operating segments are the revenue-producing components of a company for which separate financial information is produced internally and is subject to evaluation by the chief operating decision maker in deciding how to allocate resources. The Partnership has three operating segments, which are also its reportable segments - the Anchor Systems, Growth Systems and Additional Systems, each of which does business entirely within the United States of America. See Note 1–Description of Business for details. Segment results for the periods presented were as follows: Three Months Ended (in thousands) 2017 2016 Gathering Revenue - Related Party: Anchor Systems $ 49,539 $ 50,290 Growth Systems 2,225 2,891 Additional Systems 7,194 9,067 Total Gathering Revenue - Related Party $ 58,958 $ 62,248 Net Income: Anchor Systems $ 29,900 $ 32,751 Growth Systems (53 ) 937 Additional Systems 3,393 3,607 Total Net Income $ 33,240 $ 37,295 Depreciation Expense: Anchor Systems $ 3,743 $ 3,303 Growth Systems 545 529 Additional Systems 1,383 1,007 Total Depreciation Expense $ 5,671 $ 4,839 Capital Expenditures for Segment Assets: Anchor Systems $ 10,153 $ 15,171 Growth Systems 439 69 Additional Systems 600 9,146 Total Capital Expenditures $ 11,192 $ 24,386 Segment assets as of the dates presented were as follows: (in thousands) March 31, December 31, Segment Assets Anchor Systems $ 579,060 $ 571,415 Growth Systems 98,231 98,447 Additional Systems 248,725 248,695 Total Segment Assets $ 926,016 $ 918,557 |
LONG-TERM INCENTIVE PLAN
LONG-TERM INCENTIVE PLAN | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
LONG-TERM INCENTIVE PLAN | LONG-TERM INCENTIVE PLAN Under the CONE Midstream Partners LP 2014 Long-Term Incentive Plan (our “LTIP”), our general partner may issue long-term equity based awards to directors, officers and employees of the general partner or its affiliates, or to any consultants, affiliates of our general partner or other individuals who perform services on behalf of the Partnership. The Partnership is responsible for the cost of awards granted under the LTIP, which limits the number of units that may be delivered pursuant to vested awards to 5,800,000 common units, subject to proportionate adjustment in the event of unit splits and similar events. Common units subject to awards that are canceled, forfeited, withheld to satisfy tax withholding obligations or otherwise terminated without delivery of the common units will be available for delivery pursuant to other awards. During the three months ended March 31, 2017 , our general partner granted equity-based phantom units under our LTIP. Awards granted to independent directors vest over a period of one year, and awards granted to certain officers and employees of the general partner vest 33% per year over a period of three years. The following table presents activity related to the number of outstanding unvested units from December 31, 2016 to March 31, 2017: Number of Units Weighted Average Grant Date Fair Value Total awarded and unvested at December 31, 2016 158,117 $ 10.57 Granted 62,997 24.00 Vested (73,534) 10.49 Forfeited (2,680) 15.04 Total awarded and unvested at March 31, 2017 144,900 $ 16.37 The Partnership accounts for phantom units as equity awards and records compensation expense based on the fair value of the awards at their grant date. The Partnership recognized $0.3 million and $0.1 million of compensation expense for the three months ended March 31, 2017 and 2016 , respectively, which was included in general and administrative expense - related party in the consolidated statements of operations. At March 31, 2017 , the unrecognized compensation related to all outstanding awards was $ 2.0 million . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On April 20, 2017 , the Board of Directors of CONE Midstream GP LLC, the Partnership's general partner, declared a cash distribution to the Partnership’s unitholders with respect to the first quarter of 2017 of $0.2821 per common and subordinated unit. The cash distribution will be paid on May 15, 2017 to unitholders of record at the close of business on May 4, 2017 . On May 2, 2017, Noble Energy announced that it had entered into an agreement providing for the divestiture of all of its upstream natural gas assets in Appalachia. The buyer of these assets will succeed to, and the buyer's production on the acreage that is dedicated to the Partnership will continue to be gathered by us at the fees that are outlined in, our existing gathering agreement with Noble Energy. The transaction is anticipated to close during the quarter ending June 30, 2017. Noble Energy's interests in the Partnership will not change as a result of this transaction. |
SIGNIFICANT ACCOUNTING POLICI23
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ( “ GAAP”). |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and various disclosures. Actual results could differ from those estimates, which are evaluated on an ongoing basis, utilizing historical experience and other methods considered reasonable under the particular circumstances. Although these estimates are based on management’s best available knowledge at the time, changes in facts and circumstances or discovery of new facts or circumstances may result in revised estimates and actual results may differ from these estimates. Effects on the Partnership’s business, financial position and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revision become known. |
Principles of Consolidation | The consolidated financial statements include the accounts of the Partnership and all of its controlled subsidiaries, including 100% of each of the Anchor Systems, Growth Systems and Additional Systems. Although the Partnership has less than a 100% economic interest in the Growth and Additional Systems, each are consolidated fully with the results of the Partnership for all periods following the IPO. However, after adjusting for noncontrolling interests, net income attributable to general and limited partner ownership interests in the Partnership reflect only that portion of net income that is attributable to the Partnership's unitholders. As a result of the Acquisition, net income attributable to general and limited partner ownership interests in the Partnership includes 100% of the results of the Anchor Systems for periods subsequent to November 16, 2016. Transactions between the Partnership and its Sponsors have been identified in the consolidated financial statements as transactions between related parties and are discussed in Note 4. |
Revenue Recognition | Our revenues primarily consist of fees, which we charge on a per unit basis, for gathering natural gas that is produced by our Sponsors. We recognize revenue when services have been rendered, the prices are fixed or determinable, and collectibility is reasonably assured. All fees we receive are currently recorded in gathering revenue — related party in our consolidated financial statements. |
Cash | Cash includes cash on hand and on deposit at banking institutions. |
Receivables | Receivables are recorded at the invoiced amount and do not bear interest. When applicable, we reserve for specific accounts receivable when it is probable that all or a part of an outstanding balance will not be collected. Collectability is determined based on terms of sale, credit status of customers and various other circumstances. We regularly review collectability and establish or adjust the allowance as necessary using the specific identification method. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Fair Value Measurement | The Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification ( “ ASC”) Topic 820, Fair Value Measurements and Disclosures, clarifies the definition of fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. This guidance also relates to all nonfinancial assets and liabilities that are not recognized or disclosed on a recurring basis (e.g., the initial recognition of asset retirement obligations and impairments of long‑lived assets). The fair value is the price that we estimate we would receive upon selling an asset or that we would pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to prioritize input to valuation techniques used to estimate fair value. An asset or liability subject to the fair value requirements is categorized within the hierarchy based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The highest priority (Level 1) is given to unadjusted quoted market prices in active markets for identical assets or liabilities, and the lowest priority (Level 3) is given to unobservable inputs. Level 2 inputs are data, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. The carrying values on our balance sheet of our current assets and liabilities approximate fair values due to their short maturities. The carrying value of our revolving credit facility approximates fair value as the facility bears interest at a variable, market rate that resets periodically. |
Property and Equipment | Property and equipment is recorded at cost upon acquisition and is depreciated on a straight-line basis over their estimated useful lives or over the lease terms of the assets. Expenditures which extend the useful lives of existing property and equipment are capitalized. When properties are retired or otherwise disposed, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is recognized as a gain or loss. We routinely assess whether impairment indicators arise during any given quarter and have processes in place to ensure that we become aware of such indicators. Impairment indicators include, but are not limited to, sustained decreases in commodity prices, a decline in customer well results and lower throughput forecasts, and increases in construction or operating costs. For such long-lived assets, impairment exists when the carrying amount of an asset or group of assets exceeds our estimates of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or group of assets. If the carrying amount of the long-lived asset(s) is not recoverable, based on the estimated future undiscounted cash flows, the impairment loss would be measured as the excess of the asset’s carrying amount over its estimated fair value. In the event that impairment indicators exist, we conduct an impairment test. Fair value represents the estimated price between market participants to sell an asset in the principal or most advantageous market for the asset, based on assumptions a market participant would make. When warranted, management assesses the fair value of long-lived assets using commonly accepted techniques and may use more than one source in making such assessments. Sources used to determine fair value include, but are not limited to, recent third-party comparable sales, internally developed discounted cash flow analyses and analyses from outside advisors. Significant changes, such as the condition of an asset or management’s intent to utilize the asset, generally require management to reassess the cash flows related to long-lived assets. No property and equipment impairments were identified during the periods presented in the accompanying consolidated financial statements. |
Environmental Matters | We are subject to various federal, state and local laws and regulations relating to the protection of the environment. Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and do not contribute to current or future revenue generation, are expensed. Liabilities are recorded when environmental assessments and/or clean-ups are probable, and the costs can be reasonably estimated. At this time, we are unable to assess the timing and/or effect of potential liabilities related to greenhouse gas emissions or other environmental issues. As of March 31, 2017 and December 31, 2016 , we had no material environmental matters that required the recognition of a separate liability or specific disclosure. |
Asset Retirement Obligations | Our gathering pipelines and compressor stations have an indeterminate life. If properly maintained, they will operate for an indeterminate period as long as supply and demand for natural gas exists, which we expect for the foreseeable future. Accordingly, any retirement obligations associated with such assets cannot be estimated. A liability for asset retirement obligations will be recorded only if and when a future retirement obligation with a determinable life exists and can be estimated. We have not recorded any liabilities for asset retirement obligations at March 31, 2017 or December 31, 2016 . |
Variable Interest Entities | These VIEs correspond with the manner in which we report our segment information in Note 14–Segment Information, which also includes information regarding the Partnership's involvement with each of these VIEs and their relative contributions to our financial position, operating results and cash flows. The Partnership fully consolidates each of the Limited Partnerships through its ownership of CONE Midstream Operating Company LLC (the “ Operating Company”). The Operating Company, through its general partner ownership interest in each of the Anchor, Growth and Additional Limited Partnerships, is considered to be the primary beneficiary for accounting purposes and has the power to direct all substantive strategic and day-to-day operational decisions of the Limited Partnerships. |
Equity Compensation | Equity compensation expense for all unit-based compensation awards is based on the grant date fair value estimated in accordance with the provisions of the Stock Compensation Topic of the FASB Accounting Standards Codification. We recognize unit-based compensation costs on a straight-line basis over the requisite service period of an award, which is generally the same as the award's vesting term. |
Income Taxes | We are treated as a partnership for federal and state income tax purposes, with each partner being separately taxed on its share of the Partnership's taxable income. Accordingly, no provision for federal or state income taxes has been recorded in the Partnership's consolidated financial statements for any period presented in the accompanying consolidated financial statements. |
Cash Distributions | Our partnership agreement requires that we distribute all of our available cash within 45 days after the end of each quarter to unitholders of record on the applicable record date. This requirement forms the basis of our cash distribution policy and reflects a basic judgment that our unitholders will be better served by distributing our available cash rather than retaining it because, among other reasons, we believe we will generally finance any expansion capital expenditures from external financing sources. Under our current cash distribution policy, we intend to make a minimum quarterly distribution to the holders of our common units and subordinated units of $0.2125 per unit, or $0.85 per unit on an annualized basis, to the extent we have sufficient available cash after the establishment of cash reserves and the payment of costs and expenses, including the payment of expenses to our general partner. However, other than the requirement in our partnership agreement to distribute all of our available cash each quarter, we have no legal obligation to make quarterly cash distributions in this or any other amount, and the board of directors of our general partner has considerable discretion to determine the amount of our available cash each quarter. In addition, the board of directors of our general partner may change our cash distribution policy at any time, subject to the requirement in our partnership agreement to distribute all of our available cash quarterly. Generally, our available cash is the sum of (i) all cash on hand at the end of a quarter after the payment of our expenses and the establishment of cash reserves and (ii) if the board of directors of our general partner so determines, all or any portion of additional cash on hand resulting from working capital borrowings made after the end of the quarter. |
Subordinated Units and Incentive Distribution Rights | Incentive distribution rights ( “ IDRs”) represent the right to receive an increasing percentage, up to a maximum of 48.0% (which doesn't include the 2% general partner interest), of quarterly distributions of available cash from operating surplus after the minimum quarterly distribution and the target distribution levels described in the table below have been achieved. All of the IDRs are currently held by our general partner. Our general partner may transfer the IDRs separately from its general partner interest. See Note 3–Net Income Per Limited Partner Unit for additional details regarding achievement of target distribution levels. Our partnership agreement provides that, during the subordination period, the common unitholders will have the right to receive distributions of available cash from operating surplus each quarter in an amount equal to $0.2125 per unit, which is defined in our partnership agreement as the minimum quarterly distribution, plus any arrearages in the payment of the minimum quarterly distribution on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. The practical effect of the subordinated units is to increase the likelihood that, during the subordination period, there will be available cash to be distributed on the common units. The subordination period will end, and the subordinated units will convert to common units, on a one-for-one basis, when certain distribution requirements, as defined in the partnership agreement, have been met. |
Reclassifications | Certain amounts in prior periods have been reclassified to conform to the current reporting classifications with no effect on previously reported net income, partners' capital or operating cash flows. |
Recent Accounting Pronouncements | In January 2017, the FASB issued Accounting Standards Update ( “ ASU”) 2017-01–Business Combinations (Topic 805): Clarifying the Definition of a Business, which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The updated guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets is not a business. ASU 2017-01 is effective for annual reporting periods beginning after December 31, 2017 and interim periods therein. The Partnership does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In December 2016, the FASB issued ASU 2016-19–Technical Corrections and Improvements, which covers a wide range of Topics in the ASC. The amendments in this ASU represent changes to clarify, correct errors, or make minor improvements to the ASC, making it easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments generally fall into one of the following categories: amendments related to differences between original guidance and the ASC, guidance clarification and reference corrections, simplification, or minor improvements. Most of the amendments in ASU 2016-19 do not require transition guidance and are effective immediately. In August 2016, the FASB issued ASU 2016-15–Classification of Certain Cash Receipts and Cash Payments (Topic 230). ASU 2016-15 addresses the existing diversity in practice of how several specific cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows. ASU 2016-15 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. The Partnership does not expect the adoption of this guidance will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02–Leases (Topic 842), which is intended to improve financial reporting about leasing transactions. The ASU will require organizations (“lessees”) that lease assets with terms of more than 12 months to recognize the assets and liabilities for the rights and obligations created by those leases on the balance sheet. Organizations that own the assets leased by lessees (“lessors”) will remain largely unchanged from current GAAP. In addition, the ASU will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The effective date of this ASU is for fiscal years beginning after December 31, 2018 and interim periods within that year. We are currently evaluating the impact that this standard will have on our financial statements and financial covenants with lenders; however, we do not believe this standard will materially adversely impact our existing credit agreements. In May 2014, the FASB issued ASU 2014-09–Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The objective of the amendments in this update is to improve financial reporting by creating common revenue recognition guidance under both U.S. GAAP and International Financial Reporting Standards ( “ IFRS”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and should disclose sufficient information, both qualitative and quantitative, to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The following updates to Topic 606 were made during 2016: • In March 2016, the FASB updated Topic 606 by issuing ASU 2016-08–Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies how an entity determines whether it is a principal or an agent for goods or services promised to a customer as well as the nature of the goods or services promised to their customers. • In April 2016, the FASB issued ASU 2016-10–Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which seeks to address implementation issues in the areas of identifying performance obligations and licensing. • In May 2016, the FASB issued ASU 2016-12–Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients. The update, which was issued in response to feedback received by the FASB-IASB joint revenue recognition transition resource group, seeks to address implementation issues in the areas of collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. After considering the FASB's issuance of a standard that delayed application of Topic 606 by one year, the new standards are effective for annual reporting periods beginning after December 15, 2017, with the option to adopt as early as annual reporting periods beginning after December 15, 2016. Management continues to evaluate the impacts that these standards will have on the Partnership's financial statements; however, the Partnership anticipates using the modified retrospective approach at adoption as it relates to ASU 2014-09. |
SIGNIFICANT ACCOUNTING POLICI24
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Target Distributions | Percentage Allocations of Available Cash from Operating Surplus The following table illustrates the percentage allocations of available cash from operating surplus between the unitholders and our general partner based on the specified target distribution levels. The amounts set forth under “Marginal Percentage Interest in Distributions” are the percentage interests of our general partner, as holder of our IDRs, and the unitholders in any available cash from operating surplus we distribute up to and including the corresponding amount in the column “Total Quarterly Distribution Per Unit Target Amount.” The percentage interests shown for our unitholders and our general partner for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests set forth below for our general partner include its 2% general partner interest and assume that our general partner has contributed any additional capital necessary to maintain its 2% general partner interest, our general partner has not transferred its incentive distribution rights and that there are no arrearages on common units. Marginal Percentage Interest in Distributions Distribution Targets Total Quarterly Distribution Per Unit Target Amount Unitholders General Partner (including IDRs) Minimum Quarterly Distribution $0.2125 98% 2% First Target Distribution Above $0.2125 up to $0.24438 98% 2% Second Target Distribution Above $0.24438 up to $0.26563 85% 15% Third Target Distribution Above $0.26563 up to $0.31875 75% 25% Thereafter Above $0.31875 50% 50% |
NET INCOME PER LIMITED PARTNE25
NET INCOME PER LIMITED PARTNER AND GENERAL PARTNER INTEREST (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income (Loss) Per Unit | The following table illustrates the Partnership’s calculation of net income per unit for common and subordinated partner units: Quarter Ended March 31, (in thousands, except per unit information) 2017 2016 Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP $ 30,067 $ 24,790 Less: General partner interest in net income, including incentive distribution rights 1,129 496 Limited partner interest in net income $ 28,938 $ 24,294 Net income allocable to common units - Basic and Diluted $ 15,664 $ 12,151 Net income allocable to subordinated units - Basic and Diluted 13,274 12,143 Limited partner interest in net income - Basic and Diluted $ 28,938 $ 24,294 Weighted average limited partner units outstanding — Basic Common units 34,403 29,180 Subordinated units 29,163 29,163 Total 63,566 58,343 Weighted average limited partner units outstanding — Diluted Common units 34,454 29,202 Subordinated units 29,163 29,163 Total 63,617 58,365 Net income per limited partner unit — Basic Common units $ 0.46 $ 0.42 Subordinated units $ 0.46 $ 0.42 Total $ 0.46 $ 0.42 Net income per limited partner unit — Diluted Common units $ 0.45 $ 0.42 Subordinated units $ 0.46 $ 0.42 Total $ 0.45 $ 0.42 |
RELATED PARTY (Tables)
RELATED PARTY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Sponsor-related charges within general and administrative expense – related party consisted of the following: Three Months Ended (in thousands) 2017 2016 CONSOL $ 2,764 $ 1,529 Noble Energy 172 155 Total General and Administrative Expense — Related Party $ 2,936 $ 1,684 |
CONCENTRATION OF CREDIT RISK (T
CONCENTRATION OF CREDIT RISK (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenue from Sponsors | Revenues attributable to each Sponsor were as follows for the periods presented: Three Months Ended March 31, (in thousands) 2017 2016 CONSOL $ 34,386 $ 31,799 Noble Energy 24,572 30,449 Total Revenue $ 58,958 $ 62,248 |
RECEIVABLES - RELATED PARTY (Ta
RECEIVABLES - RELATED PARTY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Related Party Accounts Receivable | Receivables consisted of the following: (in thousands) March 31, 2017 December 31, 2016 Gathering fees: CONSOL $ 11,295 $ 10,956 Noble Energy 8,368 8,268 Other 3,229 3,210 Total Receivables — Related Party $ 22,892 $ 22,434 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: (in thousands) March 31, 2017 December 31, 2016 Estimated Useful Lives in Years Land $ 75,997 $ 72,878 N/A Gathering equipment 643,904 643,422 25 — 40 Compression equipment 170,824 169,681 30 — 40 Processing equipment 30,979 30,979 40 Assets under construction 22,968 13,772 N/A Total Property and Equipment $ 944,672 $ 930,732 Less: Accumulated depreciation Gathering equipment $ 41,825 $ 37,275 Compression equipment 11,651 10,590 Processing equipment 4,514 4,307 Total Accumulated Depreciation $ 57,990 $ 52,172 Property and Equipment, Net $ 886,682 $ 878,560 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following: (in thousands) March 31, 2017 December 31, 2016 Pipe stock $ 7,692 $ 8,596 Financing fees 245 286 Deposits 79 79 Total Other Assets $ 8,016 $ 8,961 |
ACCOUNTS PAYABLE - RELATED PA31
ACCOUNTS PAYABLE - RELATED PARTY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Related Party Payables | Related party payables consisted of the following: (in thousands) March 31, 2017 December 31, 2016 CONSOL: Expense reimbursements $ 1,134 $ 999 Capital expenditures reimbursements 1,343 1,148 General and administrative services 1,044 1,964 Operational expenditures reimbursements 401 395 Other reimbursement — 1,060 Due to CONSOL total $ 3,922 $ 5,566 Noble Energy: Capital expenditures reimbursements 1,105 1,105 General and administrative services 82 53 Operational expenditures reimbursements 401 401 Other reimbursement — 1,060 Due to Noble Energy total $ 1,588 $ 2,619 CONE Gathering LLC: Capital expenditures reimbursement to CONE Gathering LLC — 104 Due to CONE Gathering LLC total $ — $ 104 Total Accounts Payable — Related Party $ 5,510 $ 8,289 |
REVOLVING CREDIT FACILITY (Tabl
REVOLVING CREDIT FACILITY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | The outstanding balances and LIBOR interest rates in effect (plus applicable margin) on our revolving credit facility are as follows for the dates presented. March 31, 2017 December 31, 2016 (in thousands, except percentages) Debt Interest Rate Debt Interest Rate Credit facility, due September 30, 2019 $ 162,000 2.50 % $ 167,000 2.26 % |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Leases, Operating [Abstract] | |
Future minimum lease payments | Future minimum lease payments under operating leases as of March 31, 2017 are as follows: (in thousands) Minimum Lease Payments remainder of 2017 $ 3,791 2018 2,494 2019 1,068 2020 183 $ 7,536 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Operating Revenues and Income from Operations | Segment results for the periods presented were as follows: Three Months Ended (in thousands) 2017 2016 Gathering Revenue - Related Party: Anchor Systems $ 49,539 $ 50,290 Growth Systems 2,225 2,891 Additional Systems 7,194 9,067 Total Gathering Revenue - Related Party $ 58,958 $ 62,248 Net Income: Anchor Systems $ 29,900 $ 32,751 Growth Systems (53 ) 937 Additional Systems 3,393 3,607 Total Net Income $ 33,240 $ 37,295 Depreciation Expense: Anchor Systems $ 3,743 $ 3,303 Growth Systems 545 529 Additional Systems 1,383 1,007 Total Depreciation Expense $ 5,671 $ 4,839 Capital Expenditures for Segment Assets: Anchor Systems $ 10,153 $ 15,171 Growth Systems 439 69 Additional Systems 600 9,146 Total Capital Expenditures $ 11,192 $ 24,386 |
Reconciliation of Assets from Segment to Consolidated | Segment assets as of the dates presented were as follows: (in thousands) March 31, December 31, Segment Assets Anchor Systems $ 579,060 $ 571,415 Growth Systems 98,231 98,447 Additional Systems 248,725 248,695 Total Segment Assets $ 926,016 $ 918,557 |
LONG-TERM INCENTIVE PLAN (Table
LONG-TERM INCENTIVE PLAN (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Performance-based Units Activity | ctivity related to the number of outstanding unvested units from December 31, 2016 to March 31, 2017: Number of Units Weighted Average Grant Date Fair Value Total awarded and unvested at December 31, 2016 158,117 $ 10.57 Granted 62,997 24.00 Vested (73,534) 10.49 Forfeited (2,680) 15.04 Total awarded and unvested at March 31, 2017 144,900 $ 16.37 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) - segment | 3 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | Nov. 16, 2016 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Number of operating segments | 3 | |||
Anchor Systems | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage (as a percent) | 75.00% | |||
Growth Systems | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage (as a percent) | 5.00% | |||
Ownership percentage after all transactions | 5.00% | 5.00% | ||
Growth Systems | CONE Gathering | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Noncontrolling interest, percent | 95.00% | |||
Additional Systems | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage (as a percent) | 5.00% | |||
Ownership percentage after all transactions | 5.00% | 5.00% | ||
Additional Systems | CONE Gathering | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Noncontrolling interest, percent | 95.00% | |||
Anchor Systems | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Limited partner controlling interest acquired, percentage | 25.00% | |||
Ownership percentage after all transactions | 100.00% | 100.00% |
SIGNIFICANT ACCOUNTING POLICI37
SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule of Target Distributions [Line Items] | ||
Period to distribute available cash (in days) | 45 days | |
Quarterly distribution to limited partner (in dollars per unit) | $ 0.2125 | |
Annual distribution to limited partner (in dollars per unit) | $ 0.85 | |
General partner's ownership interest (as a percent) | 2.00% | |
Maximum | ||
Schedule of Target Distributions [Line Items] | ||
Incentive distribution, rate (as a percent) | 48.00% | |
Subordinated Units | ||
Schedule of Target Distributions [Line Items] | ||
Units outstanding (in shares) | 29,163,121 | 29,163,121 |
SIGNIFICANT ACCOUNTING POLICI38
SIGNIFICANT ACCOUNTING POLICIES - SCHEDULE OF TARGET DISTRIBUTIONS (Details) | 3 Months Ended |
Mar. 31, 2017$ / shares | |
Schedule of Target Distributions [Line Items] | |
Quarterly distribution to limited partner (in dollars per unit) | $ 0.2125 |
Minimum Quarterly Distribution | |
Schedule of Target Distributions [Line Items] | |
Marginal percentage interest in distributions, unitholders (as a percent) | 98.00% |
Marginal percentage interest in distributions, general partner (as a percent) | 2.00% |
First Target Distribution | |
Schedule of Target Distributions [Line Items] | |
Marginal percentage interest in distributions, unitholders (as a percent) | 98.00% |
Marginal percentage interest in distributions, general partner (as a percent) | 2.00% |
First Target Distribution | Minimum | |
Schedule of Target Distributions [Line Items] | |
Quarterly distribution to limited partner (in dollars per unit) | $ 0.2125 |
First Target Distribution | Maximum | |
Schedule of Target Distributions [Line Items] | |
Quarterly distribution to limited partner (in dollars per unit) | $ 0.24438 |
Second Target Distribution | |
Schedule of Target Distributions [Line Items] | |
Marginal percentage interest in distributions, unitholders (as a percent) | 85.00% |
Marginal percentage interest in distributions, general partner (as a percent) | 15.00% |
Second Target Distribution | Minimum | |
Schedule of Target Distributions [Line Items] | |
Quarterly distribution to limited partner (in dollars per unit) | $ 0.24438 |
Second Target Distribution | Maximum | |
Schedule of Target Distributions [Line Items] | |
Quarterly distribution to limited partner (in dollars per unit) | $ 0.26563 |
Third Target Distribution | |
Schedule of Target Distributions [Line Items] | |
Marginal percentage interest in distributions, unitholders (as a percent) | 75.00% |
Marginal percentage interest in distributions, general partner (as a percent) | 25.00% |
Third Target Distribution | Minimum | |
Schedule of Target Distributions [Line Items] | |
Quarterly distribution to limited partner (in dollars per unit) | $ 0.26563 |
Third Target Distribution | Maximum | |
Schedule of Target Distributions [Line Items] | |
Quarterly distribution to limited partner (in dollars per unit) | $ 0.31875 |
Thereafter Distributions | |
Schedule of Target Distributions [Line Items] | |
Marginal percentage interest in distributions, unitholders (as a percent) | 50.00% |
Marginal percentage interest in distributions, general partner (as a percent) | 50.00% |
Thereafter Distributions | Minimum | |
Schedule of Target Distributions [Line Items] | |
Quarterly distribution to limited partner (in dollars per unit) | $ 0.31875 |
NET INCOME PER LIMITED PARTNE39
NET INCOME PER LIMITED PARTNER AND GENERAL PARTNER INTEREST (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Limited Partners' Capital Account [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 50,905 | 11,314 |
Net Income Attributable to General and Limited Partner Ownership Interest in CONE Midstream Partners LP | $ 30,067 | $ 24,790 |
Less: General partner interest in net income, including incentive distribution rights | 1,129 | 496 |
Limited partner interest in net income | $ 28,938 | $ 24,294 |
Weighted average limited partner units outstanding — Basic (in units) | 63,566,000 | 58,343,000 |
Weighted average limited partner units outstanding — Diluted (in units) | 63,617,000 | 58,365,000 |
Net income per limited partner unit — Basic (in dollars per unit) | $ 0.46 | $ 0.42 |
Net income per limited partner unit - Diluted (in dollars per unit) | $ 0.45 | $ 0.42 |
Common Units | ||
Limited Partners' Capital Account [Line Items] | ||
Limited partner interest in net income | $ 15,664 | $ 12,151 |
Weighted average limited partner units outstanding — Basic (in units) | 34,403,000 | 29,180,000 |
Weighted average limited partner units outstanding — Diluted (in units) | 34,454,000 | 29,202,000 |
Net income per limited partner unit — Basic (in dollars per unit) | $ 0.46 | $ 0.42 |
Net income per limited partner unit - Diluted (in dollars per unit) | $ 0.45 | $ 0.42 |
Subordinated Units | ||
Limited Partners' Capital Account [Line Items] | ||
Limited partner interest in net income | $ 13,274 | $ 12,143 |
Weighted average limited partner units outstanding — Basic (in units) | 29,163,000 | 29,163,000 |
Weighted average limited partner units outstanding — Diluted (in units) | 29,163,000 | 29,163,000 |
Net income per limited partner unit — Basic (in dollars per unit) | $ 0.46 | $ 0.42 |
Net income per limited partner unit - Diluted (in dollars per unit) | $ 0.46 | $ 0.42 |
RELATED PARTY (Details)
RELATED PARTY (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)a$ / bbl$ / MMBTU | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | |
Gas Gathering Agreements | |||
Related Party Transaction [Line Items] | |||
Downstream fees receivable (in dollars per MMBtu) | $ / MMBTU | 0.578 | ||
Conditional fee increase, percent | 2.50% | ||
Operational update period plan (in months) | 24 months | ||
Termination period (in days) | 180 days | ||
Gas Gathering Agreements | Minimum | |||
Related Party Transaction [Line Items] | |||
Term of Agreement (in years) | 3 years | ||
Sponsors may divest up to (in net acres) | a | 25,000 | ||
Gas Gathering Agreements | Maximum | |||
Related Party Transaction [Line Items] | |||
Term of Agreement (in years) | 10 years | ||
Gas Gathering Agreements | Marcellus Shale Formation | |||
Related Party Transaction [Line Items] | |||
Fees receivable, excluding downstream (in dollars per MMBtu) | $ / MMBTU | 0.42 | ||
Gas Gathering Agreements | West Virgina | |||
Related Party Transaction [Line Items] | |||
Downstream fees receivable (in dollars per MMBtu) | $ / MMBTU | 0.289 | ||
Condensate fees receivable (in dollars per Bbl) | $ / bbl | 2.627 | ||
Gas Gathering Agreements | Pennsylvania | |||
Related Party Transaction [Line Items] | |||
Downstream fees receivable (in dollars per MMBtu) | $ / MMBTU | 0.289 | ||
Condensate fees receivable (in dollars per Bbl) | $ / bbl | 5.25 | ||
Gas Gathering Agreements | Utica Shale Formation | |||
Related Party Transaction [Line Items] | |||
Fees receivable, excluding downstream (in dollars per MMBtu) | $ / MMBTU | 0.22 | ||
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses | $ 2,936 | $ 1,684 | |
Affiliated Entity | CONSOL and Noble | Shared Service Agreement | |||
Related Party Transaction [Line Items] | |||
Charges for services | 7,600 | 8,300 | |
Affiliated Entity | CONSOL and Noble | Electrically-Powered Compression Reimbursement | |||
Related Party Transaction [Line Items] | |||
Charges for services | 4,400 | ||
Affiliated Entity | CONSOL | Shared Service Agreement | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses | 2,764 | 1,529 | |
Affiliated Entity | CONSOL | Forecast | Administrative Services | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses | $ 900 | ||
Affiliated Entity | CONSOL | Forecast | Executive Administrative Services | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses | 700 | ||
Affiliated Entity | Noble Energy | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses | $ 172 | $ 155 | |
Affiliated Entity | Noble Energy | Forecast | Executive Administrative Services | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses | $ 300 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Concentration Risk [Line Items] | ||
Revenue | $ 58,958 | $ 62,248 |
CONSOL | ||
Concentration Risk [Line Items] | ||
Revenue | 34,386 | 31,799 |
Noble Energy | ||
Concentration Risk [Line Items] | ||
Revenue | $ 24,572 | $ 30,449 |
RECEIVABLES - RELATED PARTY (De
RECEIVABLES - RELATED PARTY (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Receivables — Related Party | $ 22,892 | $ 22,434 |
Affiliated Entity | Gathering Fees | CONSOL | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Receivables — Related Party | 11,295 | 10,956 |
Affiliated Entity | Gathering Fees | Noble Energy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Receivables — Related Party | 8,368 | 8,268 |
Affiliated Entity | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Receivables — Related Party | $ 3,229 | $ 3,210 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | $ 944,672 | $ 930,732 |
Less — accumulated depreciation | 57,990 | 52,172 |
Property and Equipment, Net | 886,682 | 878,560 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | 75,997 | 72,878 |
Gathering equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | 643,904 | 643,422 |
Less — accumulated depreciation | $ 41,825 | 37,275 |
Gathering equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 25 years | |
Gathering equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Compression equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | $ 170,824 | 169,681 |
Less — accumulated depreciation | $ 11,651 | 10,590 |
Compression equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 30 years | |
Compression equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Processing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | $ 30,979 | 30,979 |
Less — accumulated depreciation | $ 4,514 | 4,307 |
Estimated useful life | 40 years | |
Assets under construction | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | $ 22,968 | $ 13,772 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Pipe stock | $ 7,692 | $ 8,596 |
Financing fees | 245 | 286 |
Deposits | 79 | 79 |
Total Other Assets | $ 8,016 | $ 8,961 |
OTHER ASSETS - NARRATIVE (Detai
OTHER ASSETS - NARRATIVE (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
Subsequent Event [Line Items] | |||
Pipe revaluation | $ 673 | $ 0 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Sale of other assets | $ 7,100 | ||
Gain (loss) on sale of other assets - amount below carrying value | $ (700) |
ACCOUNTS PAYABLE - RELATED PA46
ACCOUNTS PAYABLE - RELATED PARTY (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | $ 5,510 | $ 8,289 |
Affiliated Entity | CONSOL | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 3,922 | 5,566 |
Affiliated Entity | CONSOL | Expense reimbursements | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 1,134 | 999 |
Affiliated Entity | CONSOL | Capital expenditures reimbursements | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 1,343 | 1,148 |
Affiliated Entity | CONSOL | General and administrative services | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 1,044 | 1,964 |
Affiliated Entity | CONSOL | Operational expenditures reimbursements | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 401 | 395 |
Affiliated Entity | CONSOL | Other reimbursement | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 0 | 1,060 |
Affiliated Entity | Noble Energy | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 1,588 | 2,619 |
Affiliated Entity | Noble Energy | Capital expenditures reimbursements | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 1,105 | 1,105 |
Affiliated Entity | Noble Energy | General and administrative services | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 82 | 53 |
Affiliated Entity | Noble Energy | Operational expenditures reimbursements | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 401 | 401 |
Affiliated Entity | Noble Energy | Other reimbursement | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 0 | 1,060 |
Affiliated Entity | CONE Gathering LLC | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | 0 | 104 |
Affiliated Entity | CONE Gathering LLC | Capital expenditures reimbursements | ||
Related Party Transaction [Line Items] | ||
Total Accounts Payable — Related Party | $ 0 | $ 104 |
REVOLVING CREDIT FACILITY - ADD
REVOLVING CREDIT FACILITY - ADDITIONAL INFORMATION (Details) - Credit Facility | Sep. 30, 2014USD ($) | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||
Debt instrument, term | 5 years | |
Revolving credit facility | $ 250,000,000 | |
Debt covenant, consolidated total funded debt to EBITDA ratio measurement period (in years) | 1 year | |
Consolidated total funded debt to EBITDA ratio, outside acquisition period | 5 | |
Debt covenant, funded debt to EBITDA ratio, acquisition period | 5.50 | |
Interest expense ratio | 3 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 88,000,000 | |
Unamortized debt issuance expense | $ 400,000 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 0.15% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 0.35% | |
Federal Funds Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Base Rate, London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
LIBOR plus 1% | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.125% | |
LIBOR plus 1% | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.125% | |
LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% |
REVOLVING CREDIT FACILITY - SUM
REVOLVING CREDIT FACILITY - SUMMARY OF REVOLVING CREDIT FACILITY (Details) - Credit Facility - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
Line of credit, outstanding amount | $ 162,000 | $ 167,000 |
Stated interest rate | 2.50% | 2.26% |
SUPPLEMENTAL CASH FLOW INFORM49
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest paid | $ 1,100 | ||
Related Party Transaction [Line Items] | |||
Total Receivables — Related Party | 22,892 | $ 22,434 | |
Affiliated Entity | CONE Gathering LLC | Capital expenditure | |||
Related Party Transaction [Line Items] | |||
Total Receivables — Related Party | 2,400 | ||
Affiliated Entity | CONSOL | Capital expenditure | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 1,300 | ||
Affiliated Entity | CONSOL | Capital Project Reimbursements | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 100 | ||
Affiliated Entity | Noble Energy | Capital Project Reimbursements | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 1,100 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Leases, Operating [Abstract] | ||
remainder of 2017 | $ 3,791 | |
2,018 | 2,494 | |
2,019 | 1,068 | |
2,020 | 183 | |
Total future minimum lease payments | 7,536 | |
Rental expense | $ 1,900 | $ 2,100 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 3 | ||
Segment Reporting Information [Line Items] | |||
Gathering Revenue - Related Party: | $ 58,958 | $ 62,248 | |
Net Income: | 33,240 | 37,295 | |
Depreciation Expense: | 5,671 | 4,839 | |
Capital Expenditures for Segment Assets: | 11,192 | 24,386 | |
Segment Assets | 926,016 | $ 918,557 | |
Anchor Systems | |||
Segment Reporting Information [Line Items] | |||
Gathering Revenue - Related Party: | 49,539 | 50,290 | |
Net Income: | 29,900 | 32,751 | |
Depreciation Expense: | 3,743 | 3,303 | |
Capital Expenditures for Segment Assets: | 10,153 | 15,171 | |
Segment Assets | 579,060 | 571,415 | |
Growth Systems | |||
Segment Reporting Information [Line Items] | |||
Gathering Revenue - Related Party: | 2,225 | 2,891 | |
Net Income: | (53) | 937 | |
Depreciation Expense: | 545 | 529 | |
Capital Expenditures for Segment Assets: | 439 | 69 | |
Segment Assets | 98,231 | 98,447 | |
Additional Systems | |||
Segment Reporting Information [Line Items] | |||
Gathering Revenue - Related Party: | 7,194 | 9,067 | |
Net Income: | 3,393 | 3,607 | |
Depreciation Expense: | 1,383 | 1,007 | |
Capital Expenditures for Segment Assets: | 600 | $ 9,146 | |
Segment Assets | $ 248,725 | $ 248,695 |
LONG-TERM INCENTIVE PLAN (Detai
LONG-TERM INCENTIVE PLAN (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | $ 2 | |
Phantom Share Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Total awarded and unvested, beginning balance (in shares) | 158,117 | |
Granted (in shares) | 62,997 | |
Vested (in shares) | (73,534) | |
Forfeited (in shares) | (2,680) | |
Total awarded and unvested, ending balance (in shares) | 144,900 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Total awarded and unvested, beginning balance (in shares) | $ 10.57 | |
Granted (in dollars per share) | 24 | |
Vested (in dollars per share) | 10.49 | |
Forfeited (in dollars per share) | 15.04 | |
Total awarded and unvested, ending balance (in shares) | $ 16.37 | |
2014 LTIP | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
2014 LTIP | Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Annual award vesting percentage | 33.00% | |
2014 LTIP | Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Annual award vesting percentage | 33.00% | |
2014 LTIP | Common Units | Stock Compensation Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of common units authorized (in units) | 5,800,000 | |
2014 LTIP | Common Units | Phantom Share Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unit based compensation | $ 0.3 | $ 0.1 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Subsequent Events [Abstract] | |||
Cash distributions declared per unit (in dollars per share) | [1] | $ 0.2821 | $ 0.2450 |
[1] | Represents the cash distributions declared during the month following the end of each respective quarterly period. See Note 16. |