RADNOR, PENNSYLVANIA - June 10, 2016 - Niska Gas
Storage Partners LLC (NYSE:NKA) ("Niska" or "the Company") reported
today its financial results for the fiscal year and quarter ended
March 31, 2016.
Financial Results
Niska's net loss for the year ended March 31, 2016
was $103.3 million ($2.67 per common unit), compared to a net loss
of $350.7 million ($9.34 per common unit) for the year ended March
31, 2015. For the three months ended March 31, 2016 net loss was
$25.3 million ($0.65 per common unit) compared to a net loss of
$43.2 million ($1.12 per common unit) for the three months ended
March 31, 2015. Results for the year ended March 31, 2015 include a
non-cash write-down of the Company's recorded goodwill of $245.6
million.
Niska's Adjusted EBITDA (as defined below) for the
year ended March 31, 2016 was $17.1 million, compared to $66.7
million for the year ended March 31, 2015. Adjusted EBITDA was $6.6
million for the three months ended March 31, 2016, compared to
$18.7 million for the three months ended March 31, 2015.
Adjusted EBITDA for the year and three months
ended March 31, 2016 include benefits from previous inventory
write-downs of $45.2 million and $2.3 million, respectively,
compared to $23.1 million and $14.3 million for the year and three
months ended March 31, 2015, respectively.
Merger Transaction Update
In June 2015, the Company announced that it and
its managing member, Niska Gas Storage Management LLC, had entered
into a definitive agreement to be acquired by Brookfield
Infrastructure and its institutional partners ("Brookfield").
Brookfield will acquire all of Niska's outstanding common units for
$4.225 per common unit in cash and will acquire the managing member
and the incentive distribution rights in Niska. The closing of the
transaction is dependent on certain customary conditions being
satisfied, including the approval by the California Public
Utilities Commission ("CPUC") of the transfer of control of the
Company's Wild Goose facility to Brookfield.
On June 9, 2016, the CPUC issued a final decision
which approved the transfer of control of the Wild Goose facility
to Brookfield. The decision is effective immediately. The Company
expects that the merger transaction will proceed in accordance with
the terms of the merger agreement and that it will close on or
prior to July 31, 2016.
Distribution
The Company has agreed not to make earnings
distributions until the earlier of the date of closing or
termination of the merger transaction. Accordingly, the Company
will not pay a distribution to unitholders with respect to the
fiscal quarter ended March 31, 2016.
Form 10-K
A copy of the Company's current Annual Report on
Form 10-K can be found on Niska's website, www.niskapartners.com
under "Investor Center-SEC Filings." Niska unitholders may
receive hard copies of the annual report and the other documents
filed with the SEC free of charge upon request by emailing
ir@niskapartners.com or by calling 403-513-8650.
About Niska
Niska is a midstream natural gas services provider
with operations focused on owning, operating, developing and
acquiring midstream energy assets in the United States and
Canada. The Company is currently the largest independent owner
and operator of natural gas storage in North America, with
strategically located assets in key natural gas producing and
consuming regions. Niska owns and operates three natural gas
storage facilities, including the AECO HubTM in Alberta,
Canada; Wild Goose in California; and Salt Plains in Oklahoma. The
Company also contracts for natural gas storage capacity in the U.S.
Mid-continent.
Forward Looking
Statements
This press release includes "forward-looking
statements" - that is, statements related to future, not past,
events. Forward-looking statements are based on current
expectations and include any statement that does not directly
relate to a current or historical fact. In this context,
forward-looking statements often address our expected future
business and financial performance, and often contain words such as
"anticipate," "believe," "intend," "expect," "plan," "will" or
other similar words. These forward-looking statements involve
certain risks and uncertainties that ultimately may not prove to be
accurate. Among these risks and uncertainties are (1) changes in
general economic conditions; (2) our level of exposure to the
market value of natural gas storage services which could adversely
affect our revenues and cash available to make distributions; (3)
competitive conditions in our industry; (4) actions taken by
third-party operators, processors and transporters; (5) changes in
the availability and cost of capital; (6) operating hazards,
natural disasters, weather-related delays, casualty losses and
other matters beyond our control; (7) the effects of existing and
future laws and governmental regulations; (8) the effects of future
litigation; and (9) other factors and uncertainties that are
unknown or unpredictable could also have a materially adverse
effect on future results. For further discussion of risks and
uncertainties, you should refer to Niska's filings with the United
States Securities and Exchange Commission. Actual results and
future events could differ materially from those anticipated in
such statements. Niska undertakes no obligation, and does not
intend to update these forward-looking statements to reflect events
or circumstances occurring after this press release. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press
release. All forward-looking statements are qualified in
their entirety by this cautionary statement.
Non-GAAP Financial
Measures
Niska uses and discloses the financial measure
"Adjusted EBITDA" in this press release. Niska defines Adjusted
EBITDA as net earnings (loss) before interest, income taxes,
depreciation and amortization, unrealized risk management gains and
losses, loss on extinguishment of debt, foreign exchange gains and
losses, write-downs of inventory, gains and losses on asset
dispositions, non-cash compensation, asset impairments and other
income. Niska's Adjusted EBITDA is not presented in accordance with
Generally Accepted Accounting Principles in the United States
("GAAP"). Niska's management utilizes Adjusted EBITDA as a key
performance measure in order to assess:
-
the financial performance of Niska's assets,
operations and return on capital without regard to financing
methods, capital structure or historical cost basis;
-
the ability of Niska's assets to generate cash
sufficient to pay interest on its indebtedness and make
distributions to its equity holders;
-
repeatable operating performance that is not
distorted by non-recurring items or market volatility; and
-
the viability of acquisitions and capital
expenditure projects.
The GAAP measure most directly comparable to
Adjusted EBITDA is net earnings. For a reconciliation of
Adjusted EBITDA to net earnings, please see the schedule provided
in the attached pages. Niska believes that investors benefit from
having access to the same financial measures used by Niska's
management. Further, Niska believes that these measures are useful
to investors because they are one of the bases for comparing
Niska's operating performance with that of other companies with
similar operations, although Niska's measures may not be directly
comparable to similar measures used by other companies.
Niska Gas Storage Investor
Contact:
Sarah Steel or Kim Jackson
403-513-8650
ir@niskapartners.com
NISKA GAS STORAGE
PARTNERS LLC
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
(in thousands of U.S. dollars, except per share
amounts)
(unaudited)
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
| REVENUES |
|
|
|
|
|
|
|
|
|
| Fee-based
revenue |
|
$ |
14,593 |
|
$ |
18,325 |
|
$ |
54,734 |
|
$ |
92,340 |
|
| Optimization, net |
|
(5,449 |
) |
(25,192 |
) |
(389 |
) |
5,979 |
|
|
|
|
9,144 |
|
(6,867 |
) |
54,345 |
|
98,319 |
|
| |
|
|
|
|
|
|
|
|
|
| EXPENSES (INCOME) |
|
|
|
|
|
|
|
|
|
| Operating |
|
5,515 |
|
6,778 |
|
29,806 |
|
39,230 |
|
| General
and administrative |
|
6,315 |
|
6,325 |
|
29,993 |
|
26,833 |
|
| Depreciation and amortization |
|
14,504 |
|
9,593 |
|
57,435 |
|
117,323 |
|
|
Interest |
|
13,330 |
|
13,107 |
|
52,301 |
|
51,336 |
|
| Impairment of goodwill |
|
- |
|
- |
|
- |
|
245,604 |
|
| Losses
(gains) on disposals of assets |
|
- |
|
- |
|
268 |
|
(64 |
) |
| Foreign exchange (gains) losses |
|
(681 |
) |
347 |
|
(349 |
) |
380 |
|
| Other
income |
|
(1 |
) |
(7 |
) |
(4 |
) |
(11 |
) |
| |
|
38,982 |
|
36,143 |
|
169,450 |
|
480,631 |
|
|
|
|
|
|
|
|
|
|
|
|
| EARNINGS (LOSS) BEFORE INCOME
TAXES |
|
(29,838 |
) |
(43,010 |
) |
(115,105 |
) |
(382,312 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Income tax (benefit) expense |
|
(4,515 |
) |
219 |
|
(11,774 |
) |
(31,656 |
) |
|
|
|
|
|
|
|
|
|
|
|
| NET EARNINGS (LOSS) AND COMPREHENSIVE
INCOME (LOSS) |
|
$ |
(25,323 |
) |
$ |
(43,229 |
) |
$ |
(103,331 |
) |
$ |
(350,656 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) allocated to: |
|
|
|
|
|
|
|
|
|
| Managing
member |
|
$ |
(456 |
) |
$ |
(778 |
) |
$ |
(1,861 |
) |
$ |
(6,352 |
) |
| Common unitholders |
|
$ |
(24,867 |
) |
$ |
(42,451 |
) |
$ |
(101,470 |
) |
$ |
(344,304 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) per unit allocated to common
unitholders |
|
|
|
|
|
|
|
|
|
| - basic
and diluted |
|
$ |
(0.65 |
) |
$ |
(1.12 |
) |
$ |
(2.67 |
) |
$ |
(9.34 |
) |
NISKA GAS STORAGE
PARTNERS LLC
SELECTED FINANCIAL DATA AND NON-GAAP
RECONCILIATIONS
(in thousands of U.S. dollars, except capacity
amounts)
(unaudited)
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
| Reconciliation of Net Earnings (Loss)
to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
| Net
earnings (loss) |
|
$ |
(25,323 |
) |
$ |
(43,229 |
) |
$ |
(103,331 |
) |
$ |
(350,656 |
) |
| Add (deduct): |
|
|
|
|
|
|
|
|
|
| Interest
expense |
|
13,330 |
|
13,107 |
|
52,301 |
|
51,336 |
|
| Income tax (benefit) expense |
|
(4,515 |
) |
219 |
|
(11,774 |
) |
(31,656 |
) |
|
Depreciation and amortization |
|
14,504 |
|
9,593 |
|
57,435 |
|
117,323 |
|
| Non-cash compensation expense |
|
380 |
|
617 |
|
1,653 |
|
2,305 |
|
|
Impairment of goodwill |
|
- |
|
- |
|
- |
|
245,604 |
|
| Unrealized risk management losses (gains) |
|
5,161 |
|
16,433 |
|
16,566 |
|
(31,694 |
) |
| Foreign
exchange (gains) losses |
|
(681 |
) |
347 |
|
(349 |
) |
380 |
|
| Losses (gains) on disposals of assets |
|
- |
|
- |
|
268 |
|
(64 |
) |
| Other
income |
|
(1 |
) |
(7 |
) |
(4 |
) |
(11 |
) |
| Write-downs of inventory |
|
3,700 |
|
21,600 |
|
4,300 |
|
63,800 |
|
| Adjusted EBITDA |
|
$ |
6,555 |
|
$ |
18,680 |
|
$ |
17,065 |
|
$ |
66,667 |
|
| |
|
|
|
|
|
|
|
|
|
| Revenue: |
|
|
|
|
|
|
|
|
|
| Fee-based revenue |
|
|
|
|
|
|
|
|
|
| Long-term
contract revenue |
|
$ |
8,936 |
|
$ |
12,825 |
|
$ |
36,263 |
|
$ |
80,781 |
|
| Short-term contract revenue |
|
5,657 |
|
5,500 |
|
18,471 |
|
11,559 |
|
|
|
|
$ |
14,593 |
|
$ |
18,325 |
|
$ |
54,734 |
|
$ |
92,340 |
|
| Proprietary optimization: |
|
|
|
|
|
|
|
|
|
| Realized
optimization, net |
|
$ |
3,412 |
|
$ |
12,841 |
|
$ |
20,477 |
|
$ |
38,085 |
|
| Unrealized risk management (losses) gains |
|
(5,161 |
) |
(16,433 |
) |
(16,566 |
) |
31,694 |
|
|
Write-downs of inventory |
|
(3,700 |
) |
(21,600 |
) |
(4,300 |
) |
(63,800 |
) |
| |
|
$ |
(5,449 |
) |
$ |
(25,192 |
) |
$ |
(389 |
) |
$ |
5,979 |
|
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures: |
|
|
|
|
|
|
|
|
|
|
Maintenance |
|
$ |
982 |
|
$ |
1,604 |
|
$ |
2,926 |
|
$ |
4,844 |
|
| Expansion |
|
(1 |
) |
30 |
|
81 |
|
540 |
|
|
|
|
$ |
981 |
|
$ |
1,634 |
|
$ |
3,007 |
|
$ |
5,384 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating data: |
|
|
|
|
|
|
|
|
|
| Effective working gas capacity (Bcf) |
|
244.9 |
|
250.5 |
|
244.9 |
|
250.5 |
|
|
|
|
As of March 31, |
|
|
|
|
2016 |
|
2015 |
|
| Selected Consolidated Balance Sheet
data : |
|
|
|
|
|
| Cash and
cash equivalents |
|
$ |
10,246 |
|
$ |
11,699 |
|
| Inventory |
|
$ |
41,268 |
|
$ |
136,295 |
|
|
Obligations under credit facilities |
|
$ |
146,086 |
|
$ |
193,500 |
|
| Total debt excluding short-term credit facilities |
|
$ |
584,587 |
|
$ |
585,926 |
|
| Members'
equity |
|
$ |
80,639 |
|
$ |
185,671 |
|
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Niska Gas Storage Partners LLC via
Globenewswire
HUG#2019689
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