Sanchez Midstream Partners LP (NYSE American: SNMP) (“SNMP” or the
“Partnership”) today reported third quarter 2018 results.
Highlights include:
- Net income of $0.4 million for third quarter 2018, which
compares to a net loss of $1.8 million for second quarter 2018 and
net income of $3.8 million for third quarter 2017;
- Adjusted EBITDA (a non-GAAP financial measure) of $18.4 million
for third quarter 2018, which compares to Adjusted EBITDA of $17.6
million for second quarter 2018 and $17.8 million for third quarter
2017, respectively;
- A third quarter 2018 cash distribution on common units of $0.15
per unit ($0.60 per unit annualized), which is payable Nov. 30,
2018; and
- Cash available for distribution (a non-GAAP financial measure)
of approximately $6.6 million, resulting in a distribution coverage
ratio of 2.7 times.
MANAGEMENT COMMENTARY“We
continue to successfully execute our 2018 plan,” said Gerry
Willinger, Chief Executive Officer of the general partner of
SNMP. “While the Partnership saw lower than expected volumes
on our midstream systems during third quarter 2018, we are aware
that Sanchez Energy Corporation has undertaken a number of key
initiatives to improve operations and capital efficiency since the
beginning of the year, which include an increase in capital
spending at their core Catarina asset. These initiatives have
resulted in increased production, including strong production at
Catarina in October 2018, which we anticipate will positively
impact throughput on the Partnership’s midstream assets.
Accordingly, we believe we remain within the range of our forecast
for the full year and continue to see opportunities for upside in
the years to come.
“Notwithstanding, we note that capital markets
have generally shifted away from valuing master limited
partnerships on yield and see little opportunity to fund growth at
the Partnership with equity issuances in the current
environment. With this in mind, we have made the decision to
set the third quarter 2018 cash distribution at $0.15 per common
unit in order to enhance the Partnership’s financial flexibility
and meaningfully impact distribution coverage. Having
declared the new cash distribution, we plan to use cash from
operations to fund growth capital, reduce debt and position the
Partnership to repurchase common units over time. The
Partnership’s third quarter 2018 net income and Adjusted EBITDA
improved when compared to second quarter 2018. As a result,
cash available for distribution this quarter was approximately $6.6
million, which covers the new cash distribution on common units by
2.7 times.”
FINANCIAL RESULTSThe
Partnership’s revenue totaled $18.2 million during third quarter
2018. Included in total revenue is $14.7 million from the
midstream activities of Western Catarina Midstream and the Seco
Pipeline, approximately $5.9 million from production activities, a
$0.6 million loss on hedge settlements and a $1.8 million loss on
mark-to-market activities, which is a non-cash item.
Earnings from Carnero G&P LLC, the
Partnership’s 50/50 midstream joint venture with Targa Resources
Corp. (NYSE: TRGP) in South Texas (“the Carnero JV”) totaled $2.3
million during third quarter 2018. Cash distributions to the
Partnership from the Carnero JV related to third quarter 2018
operating results were $6.4 million.
The Partnership recorded net income of $0.4
million for third quarter 2018, which compares to a net loss of
$1.8 million for second quarter 2018 and net income of $3.8 million
for third quarter 2017.
The Partnership’s Adjusted EBITDA (a non-GAAP
financial measure) for third quarter 2018 was $18.4 million, which
compares to Adjusted EBITDA of approximately $17.6 million for
second quarter 2018 and Adjusted EBITDA of $17.8 million for third
quarter 2017. The Partnership’s calculation of Adjusted
EBITDA is discussed in further detail below.
LIQUIDITY UPDATEAs of Sept. 30,
2018, the Partnership had $184 million in debt outstanding under
its credit facility, which has a current borrowing base of $310
million and an elected commitment amount of $210 million. The
midstream portion of the borrowing base is $275 million, which
results in the Partnership’s midstream collateral covering the $210
million elected commitment amount by approximately 1.3 times.
The Partnership had approximately $2.3 million
in cash and cash equivalents as of Sept. 30, 2018.
HEDGE UPDATEFor the full year
2018, the Partnership has hedged approximately 497,328 million
British thermal units (“MMBtu”) of its natural gas production at an
effective NYMEX fixed price of approximately $3.00 per
MMBtu and approximately 260 thousand barrels of its crude oil
production at an effective NYMEX fixed price of
approximately $59.73 per barrel. The Partnership
has additional hedges covering a portion of its production in 2019
and 2020. Additional information about SNMP’s hedges can be
found in the Partnership’s documents on file with the U.S.
Securities and Exchange Commission and in the Investor Presentation
available on the Partnership’s website
(www.sanchezmidstream.com).
DISTRIBUTIONSOn Nov. 8, 2018,
the Partnership declared a third quarter 2018 cash distribution on
its common units of $0.15 per unit ($0.60 per unit
annualized). The Partnership also declared a third quarter
2018 distribution to the holders of its Class B preferred units of
$0.28225 per Class B preferred unit. The distributions are
payable on Nov. 30, 2018 to holders of record on Nov. 20, 2018.
Based on third quarter 2018 Adjusted EBITDA of
$18.4 million, cash interest expense of $2.5 million, maintenance
capital of $0.4 million, and $8.8 million in preferred unit
distributions made in cash, the Partnership generated approximately
$6.6 million in cash available for distribution (a non-GAAP
financial measure) during third quarter 2018, resulting in a
distribution coverage ratio of 2.7 times.
CONFERENCE CALL INFORMATIONThe
Partnership will host a conference call at 10 a.m. Central Time (11
a.m. Eastern Time) on Friday, Nov. 9, 2018 to discuss third quarter
2018 results.
Interested parties in the U.S. may participate
in the conference call by dialing (844) 824-3837 shortly before 10
a.m. Central Time (11 a.m. Eastern Time). The international
phone number is (412) 317-5161. Callers should request the
“Sanchez Midstream Partners Conference Call” once reaching the
operator.
A live audio webcast of the conference call and
the earnings release will be available on the Partnership’s website
(www.sanchezmidstream.com) under the Investor Relations page.
A replay will be available approximately three hours after the call
through Nov. 16, 2018, at 10:59 p.m. Central Time (11:59 p.m.
Eastern Time). The replay may be accessed by dialing (844)
512-2921 (U.S.) or (412) 317-6671 (International), and referencing
the replay passcode: 10125188.
ABOUT THE PARTNERSHIPSanchez
Midstream Partners LP (NYSE American: SNMP) is a growth-oriented
publicly-traded limited partnership focused on the acquisition,
development, ownership and operation of midstream and other energy
related assets in North America. The Partnership has
ownership stakes in oil and natural gas gathering systems, natural
gas pipelines and natural gas processing facilities, all located in
the Western Eagle Ford in South Texas.
ADDITIONAL
INFORMATIONAdditional information about SNMP can be found
in the Partnership’s documents on file with the U.S. Securities and
Exchange Commission (www.sec.gov) and in the “Investor
Presentation” available on the Partnership’s website
(www.sanchezmidstream.com).
NON-GAAP MEASURESWe present
Adjusted EBITDA and cash available for distribution, non-GAAP
financial measures, in addition to our reported net income (loss),
the most comparable GAAP financial measure, in this news
release.
Adjusted EBITDA is a non-GAAP financial measure
that is defined as net income (loss) adjusted by: (i) interest
(income) expense, net, which includes interest expense, interest
expense net (gain) loss on interest rate derivative contracts, and
interest (income); (ii) income tax expense (benefit);
(iii) depreciation, depletion and amortization;
(iv) asset impairments; (v) accretion expense;
(vi) (gain) loss on sale of assets; (vii) unit-based
compensation expense; (viii) unit-based asset management fees;
(ix) distributions in excess of equity earnings; (x) (gain)
loss on mark-to-market activities; (xi) commodity derivatives
settled early; (xii) (gain) loss on embedded derivatives; and
(xiii) acquisition and divestiture costs. For a
reconciliation of net income (loss) to Adjusted EBITDA, the most
directly comparable GAAP measure, see the tables at the end of this
news release. Cash available for distribution is defined as
Adjusted EBITDA less cash interest expense; cash distributions on
preferred units; and maintenance capital. For a
reconciliation of net income (loss) to cash available for
distribution, the most directly comparable GAAP measure, see the
tables at the end of this news release.
Adjusted EBITDA and cash available for
distribution are significant performance metrics used by our
management to indicate (prior to the establishment of any cash
reserves by the board of directors of our general partner) the
distributions that we would expect to pay to our unitholders.
Specifically, these financial measures indicate to investors
whether or not we are generating cash flow at a level that can
sustain or support a quarterly distribution or any increase in our
quarterly distribution rates. Adjusted EBITDA and cash
available for distribution are also used as quantitative standards
by our management and by external users of our financial statements
such as investors, research analysts, our lenders and others to
assess: (i) the financial performance of our assets without
regard to financing methods, capital structure or historical cost
basis; (ii) the ability of our assets to generate cash
sufficient to pay interest costs and support our indebtedness; and
(iii) our operating performance and return on capital as
compared to those of other companies in our industry, without
regard to financing or capital structure.
We believe that the presentation of Adjusted
EBITDA and cash available for distribution provides useful
information to investors in assessing our financial condition and
results of operations. The GAAP measure most directly
comparable to Adjusted EBITDA and cash available for distribution
is net income (loss). Our non-GAAP financial measures of
Adjusted EBITDA and cash available for distribution should not be
considered as an alternative to GAAP net income (loss).
Adjusted EBITDA and cash available for distribution have
important limitations as analytical tools because they exclude some
but not all items that affect net income (loss). Adjusted
EBITDA and cash available for distribution should not be considered
in isolation or as substitutes for analysis of our results as
reported under GAAP. Because Adjusted EBITDA and cash
available for distribution may be defined differently by other
companies in our industry, our definition of Adjusted EBITDA and
cash available for distribution may not be comparable to similarly
titled measures of other companies, thereby diminishing their
utility. For reconciliations of Adjusted EBITDA and cash
available for distribution to net income (loss), the most
comparable GAAP financial metric, please see the tables below.
FORWARD-LOOKING STATEMENTSThis
news release contains, and the officers and representatives of the
Partnership and its general partner may from time to time make,
statements that are considered forward–looking statements within
the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934. These forward-looking statements are
subject to a number of risks and uncertainties, many of which are
beyond our control, which may include statements about our business
strategy; our acquisition strategy; our financing strategy; our
ability to make, maintain and grow distributions; our future
operating results; the ability of our customers to meet their
drilling and development plans on a timely basis, or at all, and
perform under gathering, processing and other agreements; the
ability of our partners to perform under our joint ventures and
partnerships; our future capital expenditures; and our plans,
objectives, expectations, forecasts, outlook and intentions. All of
these types of statements, other than statements of historical fact
included in this news release, are forward-looking statements. In
some cases, forward-looking statements can be identified by
terminology such as “may,” “could,” “should,” “expect,” “plan,”
“project,” “intend,” “anticipate,” “believe,” “estimate,”
“predict,” “potential,” “pursue,” “target,” “continue,” the
negative of such terms or other comparable terminology.
The forward-looking statements contained in this
news release are largely based on our expectations, which reflect
estimates and assumptions made by the management of our general
partner. These estimates and assumptions reflect our best
judgment based on currently known market conditions and other
factors. Although we believe such estimates and assumptions
to be reasonable, they are inherently uncertain and involve a
number of risks and uncertainties that are beyond our
control. Important factors that could cause our actual
results to differ materially from the expectations listed in the
forward-looking statements include, among others, our ability to
successfully execute our business, acquisition and financing
strategies; our ability to make, maintain and grow distributions;
the ability of our customers to meet their drilling and development
plans on a timely basis, or at all, and perform under gathering,
processing and other agreements; the ability of our partners to
perform under our joint ventures and partnerships; the
availability, proximity and capacity of, and costs associated with,
gathering, processing, compression and transportation facilities;
our ability to access the credit and capital markets to obtain
financing on terms we deem acceptable, if at all, and to otherwise
satisfy our capital expenditure requirements; the timing and extent
of changes in prices for, and demand for, natural gas, natural gas
liquids and oil; our ability to successfully execute our hedging
strategy and the resulting realized prices therefrom; the credit
worthiness and performance of our counterparties, including
financial institutions, operating partners and other parties; and
other factors described in our most recent Annual Report on Form
10-K and any updates to those risk factors set forth in our
Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
Our filings with the U.S. Securities and Exchange Commission
are available on our website at www.sanchezmidstream.com and on the
SEC’s website at www.sec.gov. Management’s assumptions about
future events may prove to be inaccurate. Management cautions
all readers that the forward-looking statements contained in this
news release are not guarantees of future performance, and we
cannot assure any reader that such statements will be realized or
the forward-looking events and circumstances will occur.
Actual results may differ materially from those anticipated
or implied in forward-looking statements. The forward-looking
statements speak only as of the date made, and other than as
required by law, we do not intend to publicly update or revise any
forward-looking statements as a result of new information, future
events or otherwise. These cautionary statements qualify all
forward-looking statements attributable to us or persons acting on
our behalf.
PARTNERSHIP CONTACTKevin
SmithVP of Investor Relations(281) 925-4828
General Inquiries: (713)
783-8000www.sanchezmidstream.com
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Sanchez
Midstream Partners LP |
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Operating
Statistics |
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Three Months Ended September
30, |
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Nine Months Ended September
30, |
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2018 |
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2017 |
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2018 |
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2017 |
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Gathering and
Transportation Throughput: |
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Seco
Pipeline |
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Natural
gas (MMcf) |
|
1,475 |
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|
5,298 |
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|
12,381 |
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5,298 |
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Western
Catarina Midstream |
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Oil
(MBbls) |
|
1,180 |
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|
984 |
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|
3,301 |
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|
3,049 |
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Oil
(MBbls/d) |
|
13 |
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|
11 |
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|
12 |
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|
11 |
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|
Natural
gas (MMcf) |
|
14,271 |
|
|
|
14,952 |
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|
42,070 |
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|
44,040 |
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|
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|
Natural
gas (MMcf/d) |
|
155 |
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|
|
163 |
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|
154 |
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|
161 |
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Net Production
in MBoe: |
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Total production
(MBoe) |
|
98 |
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|
|
188 |
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|
|
357 |
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|
788 |
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Average daily
production (Boe/d) |
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1,065 |
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|
2,043 |
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|
|
1,308 |
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|
2,886 |
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Average Sales
Price per Boe: |
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Net realized price,
including hedges (1) |
$ |
53.60 |
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$ |
60.39 |
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$ |
47.34 |
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$ |
39.44 |
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Net realized price,
excluding hedges (2) |
$ |
59.72 |
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$ |
32.12 |
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$ |
51.11 |
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$ |
28.32 |
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(1) Excludes
impact of mark-to-market gains (losses). |
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(2) Excludes the
impact of all hedging gains (losses). |
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Sanchez
Midstream Partners LP |
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Condensed
Consolidated Statements of Operations |
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Three Months Ended September
30, |
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Nine Months Ended September
30, |
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2018 |
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2017 |
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2018 |
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2017 |
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($ in thousands, except per unit
amounts) |
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Oil, liquids, and gas
sales |
$ |
5,853 |
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$ |
6,046 |
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$ |
18,245 |
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$ |
22,227 |
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Gathering and
transportation sales |
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1,582 |
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14,234 |
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4,931 |
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39,621 |
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Gathering and
transportation lease revenues |
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13,148 |
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— |
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38,634 |
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— |
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Gain (loss) on
mark-to-market activities |
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(2,431 |
) |
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(1,684 |
) |
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(8,083 |
) |
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|
7,584 |
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Total
revenues |
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18,152 |
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18,596 |
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53,727 |
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69,432 |
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Operating
expenses: |
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Lease
operating expenses |
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1,905 |
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1,735 |
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5,883 |
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10,599 |
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Transportation operating expenses |
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3,061 |
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2,661 |
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8,979 |
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|
8,989 |
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Cost of
sales |
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— |
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— |
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— |
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|
77 |
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Production taxes |
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292 |
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340 |
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901 |
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1,166 |
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General
and administrative |
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5,109 |
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5,614 |
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17,193 |
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17,576 |
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Unit-based compensation expense |
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155 |
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|
631 |
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|
2,940 |
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|
1,951 |
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Gain on
sale of assets |
|
(238 |
) |
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(2,546 |
) |
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|
(2,626 |
) |
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(2,546 |
) |
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Depreciation, depletion and amortization |
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6,507 |
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6,899 |
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19,680 |
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28,017 |
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Asset
impairments |
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— |
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— |
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— |
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|
4,688 |
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Accretion
expense |
|
123 |
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|
149 |
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|
372 |
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|
647 |
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Total
operating expenses |
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16,914 |
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15,483 |
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53,322 |
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71,164 |
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Other (income)
expense: |
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Interest
expense, net |
|
2,786 |
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|
2,215 |
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8,165 |
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|
5,994 |
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Earnings
from equity investments |
|
(2,313 |
) |
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(2,873 |
) |
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|
(9,696 |
) |
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|
(4,397 |
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Other
expense |
|
352 |
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|
|
— |
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|
1,876 |
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|
— |
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Total
expenses, net |
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17,739 |
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|
14,825 |
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|
53,667 |
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|
72,761 |
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Income (loss) before
income taxes |
|
413 |
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|
|
3,771 |
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|
60 |
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(3,329 |
) |
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Income
tax expense |
|
— |
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|
— |
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|
— |
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— |
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Net income (loss) |
|
413 |
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|
3,771 |
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|
60 |
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(3,329 |
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Less: |
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Preferred
unit paid-in-kind distributions |
|
— |
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|
— |
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(3,500 |
) |
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|
(2,625 |
) |
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Preferred
unit distributions |
|
(8,838 |
) |
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|
(8,750 |
) |
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|
(24,588 |
) |
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|
(24,500 |
) |
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Preferred
unit amortization |
|
(608 |
) |
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|
(463 |
) |
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|
(1,707 |
) |
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|
(1,300 |
) |
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Net loss attributable
to common unitholders |
$ |
(9,033 |
) |
|
$ |
(5,442 |
) |
|
$ |
(29,735 |
) |
|
$ |
(31,754 |
) |
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Adjusted EBITDA |
$ |
18,355 |
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|
$ |
17,751 |
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|
$ |
54,534 |
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|
$ |
43,623 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per unit |
|
|
|
|
|
|
|
|
|
|
|
Common
units - Basic |
$ |
(0.59 |
) |
|
$ |
(0.38 |
) |
|
$ |
(1.97 |
) |
|
$ |
(2.29 |
) |
|
|
|
|
Weighted Average Units
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
Common
units - Basic |
|
15,398,453 |
|
|
|
14,313,999 |
|
|
|
15,114,671 |
|
|
|
13,888,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sanchez
Midstream Partners LP |
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December
31, |
|
|
|
|
|
|
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
$ |
10,986 |
|
|
$ |
17,527 |
|
|
|
|
|
|
|
|
|
Midstream and
production assets, net |
|
200,997 |
|
|
|
213,145 |
|
|
|
|
|
|
|
|
|
Other assets |
|
280,285 |
|
|
|
297,751 |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
492,268 |
|
|
$ |
528,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
$ |
13,347 |
|
|
$ |
13,413 |
|
|
|
|
|
|
|
|
|
Long-term debt, net of
debt issuance costs |
|
182,300 |
|
|
|
187,808 |
|
|
|
|
|
|
|
|
|
Other long-term
liabilities |
|
17,114 |
|
|
|
12,598 |
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
212,761 |
|
|
|
213,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mezzanine equity |
|
349,207 |
|
|
|
343,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partners' deficit |
|
(69,700 |
) |
|
|
(29,308 |
) |
|
|
|
|
|
|
|
|
Total partners'
deficit |
|
(69,700 |
) |
|
|
(29,308 |
) |
|
|
|
|
|
|
|
|
Total
liabilities and partners' capital |
$ |
492,268 |
|
|
$ |
528,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sanchez
Midstream Partners LP |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Income (Loss) to Adjusted EBITDA and Cash Available for
Distribution |
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
|
Three Months Ended |
|
Ended |
|
Ended |
|
Nine Months Ended |
|
September 30, |
|
March 31, |
|
June 30, |
|
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
413 |
|
|
$ |
3,771 |
|
|
$ |
1,442 |
|
|
$ |
(1,795 |
) |
|
$ |
60 |
|
|
$ |
(3,329 |
) |
Adjusted by: |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
2,786 |
|
|
|
2,215 |
|
|
|
2,599 |
|
|
|
2,780 |
|
|
|
8,165 |
|
|
|
5,994 |
|
Depreciation, depletion and amortization |
|
6,507 |
|
|
|
6,899 |
|
|
|
6,628 |
|
|
|
6,545 |
|
|
|
19,680 |
|
|
|
28,017 |
|
Asset
impairments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,688 |
|
Accretion
expense |
|
123 |
|
|
|
149 |
|
|
|
126 |
|
|
|
123 |
|
|
|
372 |
|
|
|
647 |
|
Gain on
sale of assets |
|
(238 |
) |
|
|
(2,546 |
) |
|
|
— |
|
|
|
(2,388 |
) |
|
|
(2,626 |
) |
|
|
(2,546 |
) |
Unit-based compensation expense |
|
155 |
|
|
|
631 |
|
|
|
1,438 |
|
|
|
1,347 |
|
|
|
2,940 |
|
|
|
2,648 |
|
Unit-based asset management fees |
|
2,365 |
|
|
|
2,103 |
|
|
|
2,279 |
|
|
|
2,647 |
|
|
|
7,291 |
|
|
|
6,478 |
|
Distributions in excess of equity earnings |
|
4,061 |
|
|
|
517 |
|
|
|
1,837 |
|
|
|
2,360 |
|
|
|
8,258 |
|
|
|
2,288 |
|
Loss on
mark-to-market activities |
|
2,183 |
|
|
|
7,000 |
|
|
|
1,978 |
|
|
|
4,453 |
|
|
|
8,614 |
|
|
|
1,173 |
|
Commodity
derivatives settled early |
|
— |
|
|
|
(3,602 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,602 |
) |
Acquisition and divestiture costs |
|
— |
|
|
|
614 |
|
|
|
251 |
|
|
|
1,529 |
|
|
|
1,780 |
|
|
|
1,167 |
|
Adjusted EBITDA
(1) |
$ |
18,355 |
|
|
$ |
17,751 |
|
|
$ |
18,578 |
|
|
$ |
17,601 |
|
|
$ |
54,534 |
|
|
$ |
43,623 |
|
Adjusted by: |
|
|
|
|
|
|
|
|
|
|
|
Maintenance capital expenditures(2) |
|
(400 |
) |
|
|
(600 |
) |
|
|
(400 |
) |
|
|
(400 |
) |
|
|
(1,200 |
) |
|
|
(1,800 |
) |
Cash
interest expense |
|
(2,528 |
) |
|
|
(2,013 |
) |
|
|
(2,300 |
) |
|
|
(2,488 |
) |
|
|
(7,316 |
) |
|
|
(5,394 |
) |
Cash
distributions on preferred units |
|
(8,838 |
) |
|
|
(8,750 |
) |
|
|
(8,750 |
) |
|
|
(7,000 |
) |
|
|
(24,588 |
) |
|
|
(24,500 |
) |
Cash available for
distribution |
$ |
6,589 |
|
|
$ |
6,388 |
|
|
$ |
7,128 |
|
|
$ |
7,713 |
|
|
$ |
21,430 |
|
|
$ |
11,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) To supplement our financial results and guidance
presented in accordance with U.S. generally accepted accounting
principles (“GAAP”), we use Adjusted EBITDA, a non-GAAP financial
measure, in this quarterly report. We believe that non-GAAP
financial measures are helpful in understanding our past financial
performance and potential future results, particularly in light of
the effect of various transactions effected by us. We define
Adjusted EBITDA as net income (loss) adjusted by: (i) interest
(income) expense, net, which includes interest expense, interest
expense net, (gain) loss on interest rate derivative contracts, and
interest (income); (ii) income tax expense (benefit); (iii)
depreciation, depletion and amortization; (iv) asset impairments;
(v) accretion expense; (vi) (gain) loss on sale of assets; (vii)
unit-based compensation expense; (viii) unit-based asset management
fees; (ix) distributions in excess of equity earnings; (x) (gain)
loss on mark-to-market activities; (xi) commodity derivatives
settled early; (xii) (gain) loss on embedded derivatives; and
(xiii) acquisition and divestiture costs. |
|
(2) Represents estimated maintenance capital
expenditures attributable to our controlling interest in our
midstream and production assets. Maintenance capital expenditures
are cash expenditures made to maintain, over the long-term, our
operating capacity, operating income or asset base. Examples of
maintenance capital expenditures are expenditures to develop and
replace our oil and natural gas reserves as well as the repair,
refurbishment and replacement of gathering and transportation
assets, to maintain equipment reliability, integrity and safety and
to address environmental laws and regulations. |
|
|
|
|
|
|
|
|
|
|
|
|
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