HOUSTON--(EON: Enhanced Online News)--Noble Midstream Partners LP (NYSE: NBLX) (“Noble Midstream” or “the Partnership”) today provided fourth quarter guidance for volumes and select financial metrics.
Fourth Quarter 2016 Guidance
- Oil and Gas gathering volumes of 62 – 65 thousand barrels of oil equivalent per day (MBoe/d)
- Produced water gathering volumes of 10 – 12 thousand barrels of water per day (MBw/d)
- Fresh water delivery volumes of 125 – 150 (MBw/d)
- Net Income of $34 - $37 million
- EBITDA(1) of $36 - $40 million, or attributable to the Partnership of $26 - $29 million
- Distributable Cash Flow (“DCF”) (1) of $24 - $27 million
Terry R. Gerhart, Chief Executive Officer of Noble Midstream added, “We are pleased with the operational momentum that has carried over from the third quarter when new volumetric records were set in all segments. The business continues to significantly exceed our IPO forecast and activity levels on dedicated acreage are already ahead of our expectations.”
Wells Fargo Conference
Noble Midstream today announced that it will participate in the Wells Fargo Pipeline, MLP and Utility Symposium in New York City, on Tuesday, December 6 and Wednesday, December 7, 2016. An investor presentation to be used at the Symposium, which includes additional fourth quarter guidance, has been made available on the Investors page of the Partnership’s website at www.nblmidstream.com.
About Noble Midstream Partners LP
Noble Midstream is a growth-oriented Delaware master limited partnership formed by our sponsor, Noble Energy, Inc. (“Noble Energy”), to own, operate, develop and acquire a wide range of domestic midstream infrastructure assets. We currently provide crude oil, natural gas, and water-related midstream services for Noble Energy in the DJ Basin in Colorado. Our areas of focus are in the DJ Basin in Colorado and the Delaware Basin in Texas. For more information, please visit www.nblmidstream.com.
Non-GAAP Financial Measures
This news release includes EBITDA and Distributable Cash Flow, both of which are non-GAAP measures which may be used periodically by management when discussing our financial results with investors and analysts. The following presents a reconciliation of each of these non-GAAP financial measures to their nearest comparable GAAP measure.
We define EBITDA as net income before income taxes, net interest expense, depreciation and amortization. EBITDA is used as a supplemental financial measure by management and by external users of our financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess:
- our operating performance as compared to those of other companies in the midstream energy industry, without regard to financing methods, historical cost basis or capital structure;
- the ability of our assets to generate sufficient cash flow to make distributions to our partners;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
We define Distributable Cash Flow as EBITDA less estimated maintenance capital expenditures. Distributable Cash Flow is used by management to evaluate our overall performance. Our partnership agreement requires us to distribute all available cash on a quarterly basis, and Distributable Cash Flow is one of the factors used by the board of directors of our general partner to help determine the amount of available cash that is available to our unitholders for a given period.
We believe that the presentation of EBITDA and Distributable Cash Flow provide information useful to investors in assessing our financial condition and results of operations. The GAAP measure most directly comparable to EBITDA and Distributable Cash Flow is net income. EBITDA and Distributable Cash Flow should not be considered alternatives to net income, net cash provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA and Distributable Cash Flow exclude some, but not all, items that affect net income, and these measures may vary from those of other companies. As a result, EBITDA and Distributable Cash Flow as presented herein may not be comparable to similarly titled measures of other companies.
EBITDA and Distributable Cash Flow should not be considered as alternatives to GAAP measures, such as net income, operating income, cash flow from operating activities, or any other GAAP measure of financial performance.
|(1)||EBITDA and Distributable Cash Flow are not financial measures presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Definitions and reconciliations of these non-GAAP measures to their most closely comparable GAAP measures appear in the table which follows.|
$ in millions
|Net Income||$34 - $37||$22.4|
|Add: Depreciation and Amortization||2 – 3||2.3|
|Add: Interest Expense, Net of Amount Capitalized||0||2.5|
|Add: Income Tax Provision||0||11.1|
|EBITDA||$36 - $40||$38.2|
|Less: EBITDA Attributable to Noncontrolling Interests||10 – 11||8.6|
|EBITDA Attributable to NBLX||$26 - $29||$29.6|
|Less: Maintenance Capital Expenditures||2||1.9|
|Distributable Cash Flow of NBLX||$24 - $27||$27.7|
This news release contains certain “forward-looking statements” within the meaning of federal securities law. Words such as “anticipates”, “believes”, “expects”, “intends”, “will”, “should”, “may”, “estimates”, and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect the Partnership’s current views about future events. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, Noble Energy’s ability to meet their drilling and development plans, changes in general economic conditions, competitive conditions in the Partnership’s industry, actions taken by third-party operators, gatherers, processors and transporters, the demand for crude oil and natural gas gathering and processing services, the Partnership’s ability to successfully implement its business plan, the Partnership’s ability to complete internal growth projects on time and on budget, the price and availability of debt and equity financing, the availability and price of crude oil and natural gas to the consumer compared to the price of alternative and competing fuels, and other risks inherent in the Partnership’s business that are discussed in its most recent registration statement on Form S-1 and in the Partnership’s other reports on file with the Securities and Exchange Commission (“SEC”). These reports are also available from the Partnership’s office or website, www.nblmidstream.com. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Noble Midstream does not assume any obligation to update forward-looking statements should circumstances, management’s estimates, or opinions change.
This news release also contains certain non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating Noble Midstream’s overall financial performance. Please see the reconciliations provided above of the non-GAAP financial measures used in this news release to the most directly comparable GAAP financial measures.
In this new release, we refer to certain results as “attributable to the Partnership.” Unless otherwise indicated herein, these amounts exclude the non-controlling interests in the development companies (DevCos) retained by Noble Midstream in connection with our initial public offering. We believe the results “attributable to the Partnership” provide the best representation of the operations from which our unitholders benefit.