SNMP - Earnings call transcript Q1 2018 | Evolve Transition Infrastructure LP

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Operator

Good morning, and welcome to Sanchez Midstream Partners First Quarter 2018 Earnings Conference. My name is Denise and I will be moderating today's call. [Operator Instructions] I would now like to turn the call over to Chuck Ward, Chief Financial Officer of Sanchez Midstream Partners. Mr. Ward, you may begin.

Chuck Ward

for thanks and morning joining us. Good this Officer; Pat me morning Chief is Executive Chief our Willinger, Sanchez, Officer. Gerry Operating With our and President

we XXXX few our file and our a quick market before to get Just closes after today. notes we plan fourth report earnings started, quarter XX-Q this morning we released

updated XXXX, to that earnings our website on our XXXX quarter our we first available not which includes presentation forecast Please is note our for XXXX guidance. Our release, the reflect have yet full investor year www.sanchezmidstream.com.

expect The investment later our also on And to these These and uncertainties. include to use measures measures. understand with our that with file during Willinger. on this do unit MLPA We turn subject available so non-GAAP financial to to before the which website. And documents our would Gerry non-GAAP and will measures that, this our will are the the SEC, performance. now attending holders release morning's finally, described discussion morning forward-looking over Conference our are risks reconciliation call like we community note GAAP of statements, better more which month. fully are Also certain our discussion in includes help a to earnings to available the financial this I operating website on

Gerry Willinger

solid keep Thanks The start to quarter another relatively XXXX. Chuck. had it I'll partnership brief.

than financial in production at of months you the in sees the As variability impact the tend most first its schedules to of during times volumes first results normally quarter know our year. the joint business the other seasonal more as three timing the

for EBITDA Facility XXXX first of Seco quarter XXXX. the withstanding us, now by when adjusted than the of Now and XX% adjusted more our EBITDA to Pipeline first compared the Raptor Gas the behind completion Processing quarter increased with

one XXXX times unit and the per distribution ratio $X.XX a the November resulted for quarters distributed full two averaged which had XXXX Raptor in operations coverage Seco than both first Facility the Notably, Pipeline distribution of distribution the of in for approximately coverage a times. available quarter. Processing X.XX our cash and Gas quarter distribution since the partnership As $X.X restarting greater online, result over our ratio in the for was million, the since

Comanche Western to cubic per is be XX% by of Texas. In to XXX The to Gas owned We for release. and million Midstream thousand its Facility combined currently announced cubic earnings, partnership, day first full like XX.X to million operated XXXX Processing expected Raptor the from quarter Midstream Processing With per and from flow the feet Facility, range gas day addition with non-operated dry owned per in south Catarina Carnero volumes feet Gathering we XX Western and the Catarina thousand XXX Pipeline, morning's Line million markets by day. natural to Gas Catarina of our each interconnection wholly to XX from which will estimated million cubic volumes and project million at to gas day. Seco is from asset feet Targa, XX.X of the XXX oil per year barrels this forecast Raptor

for XXXX production equivalent. total the the we of oil to of project business, XXX,XXX On side currently approximately partnership's volume barrels of XXX,XXX

prices producing to and midstream less our reduce for expand their work which divestiture the to opportunistically are are commodity suited nature to forward. production activities, we the partnerships south continue activities business assets model in going by our exposure sensitive of As strategic Texas, to through we

small the to liquidity. package month, $X of assets, last the million our the our As sale filing we we reported about which with completed in producing X-K late of added SEC recently

the the XXXX, volumes, those wet currently we of supporting processing capture further balance year to on commitments the acreage margin they to raptor dedications, gas following. results. firm volumes Ward into which midstream distribution maintain across and with midstream metrics as dry the oil an Catarina debt unlock value continue first to value our Convert arbitrage headed chain from XXXX flowing the implement our to up M&A so to Comanche solid of strategy gas the volumes pick and the For space. grow down significant look capacity, and with of exceed do to and overview quarter here deliver, as potential potential maximize prudent maintain metrics Comanche discussion financial the coverage Charles opportunities will

Chuck Ward

Thanks Gerry.

amount, from quarter production the XX item. of this totaled million million the $X.X had balance hedge mark-to-market revenue was activities. and course settlements XXXX million. on is approximately midstream revenue X.X Of loss on from and of activities $XXX,XXX noncash We Our which came first activities $XX.X our for came million a loss

G&A $X.X taxes. and million, million and compensation expenses operating XXXX Our for adding related million. based for midstream in you $XX.X at production reported related million asset fees, in the during unit totaled non-cash in the the totaled operating million expenses X.X expenses expenses arrive includes G&A Cash first which which quarter to our quarter the quarter X.X management and operating $X.X $X.X and assets million totaled

to maintenance million in credit facility quarter, forecast CapEx about joint in for currently lender XX.X million, $X.X time. commitments. million with be interest our for EBITDA mentioned a the out million down in backing our third distributions million coverage a noting XXX earlier a X.X with available little cash have of maintenance adjusted X.X the in distribution X.XX cash for base resulted we CapEx distributions, After than was cash for for for have or XXXX. one XXX which $XXX first including outstanding Our debt Gerry borrowing million ratio for per that compared We XXXX $XXX,XXX quarter $XXX,XXX venture than generated preferred distributions, in quarter greater less million Targa. and and of to we million million It's in expense, XXXX as X.X from worth approximately

another over borrowing $X contribution, the at our set adjusted of facility. our strong midstream quarter anticipate covers noted base, to continue portion we when to the approximately for expected the midstream be crude of partners' MMBtu its later $XX hedged million a and is price hedges XX-Q. on With that currently is commitments production in more complete now XXX per feet which we line our additional and base of of the the hedged EBITDA quarter. borrowing XXXX we overview With some this conclude effective which we've approximately cubic hedges portion redetermination, lender barrels case around more natural portion firmly than XXXX barrel. X.X million, price credit of And next will As like this we fixed in last our gas of our XXX,XXX to collateralization about for slightly production XXXX, questions. production, moderator are covering per which partnership effective oil and the written for fixed has The of and below open on results, the

Operator

Thank you.

Instructions] We will now come of the Sibal go question-and-answer question Sunil Your [Operator ahead. Please Seaport first begin session. Global. from will

Sunil Sibal

morning good Hi, guys.

Gerry Willinger

Good Morning.

Chuck Ward

Sunil. morning, Good

Sunil Sibal

of touched Yeah, a growing you business couple midstream think of some so of questions 'XX, for in the me, on about that. clarifications couple but guys for goals I kind

of just what there the opportunities mentioned you little bit if on an be footprint on for as your terms of kind own? JV dedication kind entity its remainder be all Comanche, I are of the would of that year? a acreage it with of part - that And Targa or think would take from you and other the in kind about midstream growing the of elaborate then

Pat Sanchez

hold Targa, collaboration Comanche, we it's to with the I think on in up until do those look - us results we deals to are we're consummated for the though on until those Sure finished. best

Gerry Willinger

do to so for get capture have goals from above those we to continue Raptor Processing this rates. year as to grow Though volumes as volumes and for the ways Gas Catarina Comanche, nameplate look - they

goal volumes exceed to a forecasts, capture down So and million of Comanche can to systems volumes so full forecasting is continue through coming plant. our it you and market. continue we're plan day, We're and The feet eventually to our XXX plant. tell flow Catarina a they essentially day the assets the those to approach part from capacity as those to as expecting all volumes through that's XXX the try on our through cubic is

Sunil Sibal

just on growth guidance kind your complete kind maintenance of guidance on this you're discussion giving aspect, at X.X on a so is that to it any and off CapEx capital that and of Got stage, still holding fair?

Chuck Ward

That's correct.

Sunil Sibal

assets, of you on Okay, guidance of that's just clarifications the of then all kind right. for helpful and the couple non-operated provided, on me first that

earnings of should laid trading of just that way versus kind between part, a clarify the wanted kind how distributions, there anything for that of think margin are versus we timing operating of. aware distributions? is should the that be the operating there distribution, proxy distributions I in the You out issues about we is the earnings we operating get I but on earnings with good that realize to guidance,

Chuck Ward

those to Yeah, that for prior are so the hindrance. as be distributions was distributions out distributions for them timing of the our are from quarterly be the on basis receive it on meant works entity, a to we as never a Targa proxies made out actually to

Sunil Sibal

one water just on me volumes, it got Okay, the one from last then right. and

or Has Sanchez for I some moving extended we should how some that all a defined year think them that? which for volumes of think last of been based them, far arrangement on time. with 'XX water of you for had were volumes you kind about agreement period

Chuck Ward

currently processing are system. volumes our those We water through

of in XXXX well needs water the certainly coming will have the through out time water that through the to we to coming as system, based real sand through broader expect We It's and margins environment. goes the evaluate to system system those continue we so flowing that and monitor drawing and if bring as upon is schedule pretreatment really the through.

Sunil Sibal

just three the volume the growth. clearly lumpiness you fair from laid that we Got for ratable? it a like then bit volume last quarters should there growth guidance of cadence or me, there any fairly for of of it in it kind terms growth, and in is Is remaining of is seems out expect one so

Chuck Ward

the roll over at the first could end out the and well, and through you out. have last the first We quarter typically do ramps we they're isolated second it's quarter the a typically Well, quarter, coming bit certainly how projected schedules year if in drawing see let's in the see as typically have but year do - and lumpiness year. we of little

So as that's I XXXX half well. of at look always way back weighted half we we as good business weighted to volumes our a really front more year think than approach and think it's as

Sunil Sibal

it, Thanks guys. the color. a for Got all lot

Operator

from ahead. be Georg will Venturatos Rice. of question Johnson next Please The go

Georg Venturatos

morning good guys. Hey,

Chuck Ward

Good morning, George.

Gerry Willinger

George. morning, Good

Georg Venturatos

if sale. further nice but details missed Just, I here, in progress production apologize obviously [indiscernible] announced some I any you

assets Palmetto update out an of the get but demits there production side. on and stuff, like we of there small to bigger that what sense what pieces to the on some other wanted EWI's kind of wanted if any largely and just remaining the get were Just kind remaining. opportunities of left a are had of, Feels other maybe

Pat Sanchez

up asset. we EWI Sure, on makes you're Palmetto portion right. the of The the have remaining still the what upstream largest

one EWI bricks have small of of off we the of we've on bought Oklahoma 'XX, - portals. had of recently we part auction online back all we sold guess as part just our we remains other the of actually of week one another then on the those holdings acquisitions back remainder I this Additionally right. then the the of that that ranch and closed assets some last was and have go that And in

some there big Palmetto to –that's Texas little in then of down kind the and we're it. then Louisiana, So South and more non-off bit in a

record. the of assets think liquidity and deals, we kind big just keep some the do easier we small doing of it's than the I reinforcing lot through position on EBITDA but to metrics adjusted but chunking of those keep the some deals it, debt a to on and

Georg Venturatos

strategically mean Got is associated would sure, still that then that portion level that we're I you divestment there? a think just be still obviously so do on how look today, that make to and terms were midstream growth as maintain EBITDA with opportunities you either of coinciding with - it, obviously it's good hopefully wanted about to I guess, an acquisition perfect there able to at see. page world to we in distribution do in fill the same as you as opportunity And you at that look or

Chuck Ward

further of following and had if you Comanche investment I that out you a say to give Catarina would to right, you then keep us would think exactly part that with transaction and the think production come the perfect an to That's that molecules reduction of timing about assets. look the opportunity the supplement degree of

low So to metrics. is world and theoretical that's perfect that the having the being one of the capacity able that to opposed and keys having debt actual world do to as the debt

Georg Venturatos

XQ. it consistent see least it then guys had in Got second trajectory got as you of and continue it's the seasonality and and thought in guidance me, kind I a that in we one half largely Care seems volume for about what of is last to out half the typically distribution Catarina like talked after we throw improve anticipate kind where bogie just north you being second there. coverage of the at upward

Chuck Ward

of staying you kind through we're within cash our think yield I work kind going think a I result, of guidance for if flows. but us balance the that to

advantage of follow are I the opportunities. think molecules a and position take to good that we'll sure balance actively investment in trying to we make

like need the going the to we capital balance hard for markets, it's seems year here So it increase. in tap to don't keep just today, it on so of coverage not you're if see I through

Georg Venturatos

it no, definitely thanks this year, looks Got answer improve it, for but it the like through Chuck. will

Operator

Instructions] to ward chuck time [Operator at for remarks And any to will session. we I like would the back hand question-and-answer conference the conclude over closing this

Chuck Ward

with look joining MLPA again us soon. the Conference very this with meeting speaking Orlando. morning at in forward thanks and you to of we Investor you Well, We're for some

Operator

gentlemen has lines. Thank now the Thank you, has and conference once presentation attending now Ladies .You disconnect you the again may for sir. conference today's And your concluded. concluded.

You disconnect your may lines.

Evolve Transition Infrastructure (SNMP) 10 May 182018 Q1 Earnings call transcript