Access Midstream Partners, L.P. Reports Financial Results for the 2013 Fourth Quarter and Full Year

Partnership Reports 2013 Fourth Quarter Adjusted EBITDA of $241 Million, Distributable Cash Flow of $180 Million and Net Income of $129 Million

2013 Full Year Adjusted EBITDA of $859 Million, Distributable Cash Flow of $635 Million and Net Income of $336 Million

Partnership Increases Quarterly Distribution to $0.555 per Unit

OKLAHOMA CITY--()--Access Midstream Partners, L.P. (NYSE:ACMP) today announced financial results for the 2013 fourth quarter and full year. The Partnership’s adjusted EBITDA for the 2013 fourth quarter totaled $240.6 million, an increase of $121.6 million, or 102.2%, from 2012 fourth quarter adjusted EBITDA of $119.0 million. Net income attributable to the Partnership totaled $129.1 million in the 2013 fourth quarter, an increase of $104.8 million from 2012 fourth quarter net income of $24.3 million. Distributable cash flow (DCF) for the 2013 fourth quarter totaled $180.3 million, an increase of $98.2 million, or 119.6%, from 2012 fourth quarter DCF of $82.1 million and resulted in a distribution coverage ratio of 1.48.

The Partnership’s 2013 full year adjusted EBITDA was $858.6 million, an increase of $380.7 million, or 79.7%, compared to 2012 full year adjusted EBITDA of $477.9 million. Net income attributable to the Partnership for the 2013 full year was $336.0 million, up $157.5 million, or 88.2%, compared to 2012 full year net income of $178.5 million. DCF for the 2013 full year was $635.1 million, an increase of 86.7% over the 2012 full year, and resulted in a full year coverage ratio of 1.49. Financial terms are defined on pages three and four of this release.

Capital expenditures for the 2013 fourth quarter totaled $345.5 million, including maintenance capital expenditures of $27.5 million. These capital expenditures included $135.4 million for the Partnership’s share of capital expenditures in entities accounted for as equity investments. Capital expenditures for the 2013 full year totaled $1.6 billion, including maintenance capital expenditures of $110.0 million. These capital expenditures included $671.4 million for the Partnership’s share of capital expenditures in entities accounted for as equity investments.

Throughput for the 2013 fourth quarter totaled 348.3 billion cubic feet (bcf) of natural gas, or 3.79 bcf per day, an increase of 31.1% from 2012 fourth quarter throughput of 2.89 bcf per day. The increase was driven primarily by well connect activity in the Marcellus Shale and throughput from the Eagle Ford assets acquired in 2012. Partnership revenue for the 2013 fourth quarter totaled $328.1 million, an increase of $179.8 million, or 121.2%, compared to 2012 fourth quarter revenue of $148.3 million. The 2013 fourth quarter results include $64.9 million of revenue associated with minimum volume commitments (MVC). No revenue associated with MVC was included in the 2012 fourth quarter. After excluding revenue attributable to MVC, 2013 fourth quarter revenue was up 77.5%. Revenue for the 2013 fourth quarter excludes revenue attributable to the Partnership’s equity investments as those revenues are accounted for as part of the Partnership’s investments in unconsolidated affiliates. If the Partnership’s proportional share of revenue from equity investments was included, revenue for the 2013 fourth quarter would have totaled $401.8 million, an increase of $211.4 million, or 111.0%, compared to the 2012 fourth quarter.

Partnership Increases Cash Distribution

On January 24, 2014, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.555 per unit for the 2013 fourth quarter, an increase of $0.105, or 23.3%, per unit over the 2012 fourth quarter distribution and an increase of $0.02, or 3.7%, per unit over the 2013 third quarter distribution. The distribution was paid on February 14, 2014 to unitholders of record at the close of business on February 7, 2014. DCF of $180.3 million for the 2013 fourth quarter provided distribution coverage of 1.48 times the amount required for the Partnership to fund the distribution to the limited partners and the general partner.

Management Comments

J. Mike Stice, Access Midstream Partners’ Chief Executive Officer, commented, “Access Midstream had a tremendous year in 2013. We delivered strong returns for our investors as we exceeded the consensus EBITDA estimate in each quarter of 2013. That financial success was driven by our operations teams which executed a capital program of $1.6 billion in 2013 that will contribute to our continued growth for many years to come. We also completed the enormous task of creating our own back office infrastructure over the last 18 months. In just three and a half years since our IPO in 2010, we have increased our enterprise value from $2.6 billion to $14.8 billion and I’m excited about continuing that growth profile as we execute on our many opportunities in 2014 and beyond. Our growth story is just beginning as our anchor positions in the most prolific unconventional plays in America will continue to be the source of long-term, predictable growth.”

Outlook for 2014 and 2015 Updated

Based on 2013 year end results and analysis, the Partnership has made two updates to its previously published financial outlook. First, the Partnership’s outlook for growth capital expenditures in 2014 has increased by $100 million to a range of $1.1 billion to $1.2 billion due to the cash impact of 2013 construction activity being pushed to 2014. In addition, the Partnership’s outlook for maintenance capital expenditures in 2014 has increased from $110 million to $130 million based on the Partnership's annual review of long range capital requirements. All other aspects of the Partnership's financial outlook for 2014 and 2015 remain unchanged.

Conference Call Information

A conference call to discuss this release of financial results has been scheduled for Wednesday, February 19, 2014 at 9:00 a.m. EST. The telephone number to access the conference call is 719-325-4908 or toll-free 877-440-5807. The passcode for the call is 7770077. We encourage those who would like to participate in the call to dial the access number between 8:50 and 9:00 a.m. EST. For those unable to participate in the conference call, a replay will be available for audio playback from 12:00 p.m. EST on February 19, 2014 through 12:00 p.m. EST on March 5, 2014. The number to access the conference call replay is 719-457-0820 or toll-free 888-203-1112. The passcode for the replay is 7770077. The conference call will also be webcast live on the Internet and can be accessed by going to the Partnership’s website at www.accessmidstream.com in the "Events" subsection of the "Investors" section of the website. An archive of the conference call webcast will also be available on the website.

Use of Non-GAAP Financial Measures

This press release and accompanying schedules include the non-GAAP financial measures of adjusted EBITDA and DCF. The accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered as an alternative to GAAP measures such as net income, net cash provided by operating activities or any other measure of liquidity or financial performance calculated and presented in accordance with GAAP. Investors should not consider adjusted EBITDA or DCF in isolation or as a substitute for analysis of the Partnership’s results as reported under GAAP. Because these non-GAAP financial measures may be defined differently by other companies in our industry, the Partnership’s definition of adjusted EBITDA and DCF may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

Adjusted EBITDA. The Partnership agreement defines adjusted EBITDA as net income (loss) before income tax expense, interest expense, depreciation and amortization expense and certain other items management believes affect the comparability of operating results. Adjusted EBITDA is a non-GAAP financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

  • The Partnership’s operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to capital structure, historical cost basis or financing methods;
  • The Partnership’s ability to incur and service debt and fund capital expenditures;
  • The ability of the Partnership’s assets to generate sufficient cash flow to make distributions to unitholders; and
  • The viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

Management believes it is appropriate to exclude certain items from EBITDA because management believes these items affect the comparability of operating results. The Partnership believes that the presentation of adjusted EBITDA in this press release provides information useful to investors in assessing its financial condition and results of operations. The GAAP measure most directly comparable to adjusted EBITDA is net income.

Distributable Cash Flow. The Partnership agreement defines DCF as adjusted EBITDA attributable to the Partnership adjusted for:

  • Addition of interest income;
  • Subtraction of net cash paid for interest expense;
  • Subtraction of maintenance capital expenditures; and
  • Subtraction of income taxes.

Management compares the DCF the Partnership generates to the cash distributions it expects to pay its partners. Using this metric, management computes a distribution coverage ratio. DCF is an important non-GAAP financial measure for our limited partners since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flows at a level that can sustain or support an increase in its quarterly cash distributions. DCF is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is in part measured by its yield, which is based on the amount of cash distributions a partnership can pay to a unitholder. The GAAP measure most directly comparable to DCF is net cash provided by operating activities.

Access Midstream Partners, L.P. (NYSE:ACMP) is the industry’s largest gathering and processing master limited partnership as measured by throughput volume. The Partnership owns, operates, develops and acquires natural gas gathering and processing systems and other midstream energy assets. Headquartered in Oklahoma City, the Partnership's operations are focused on the Barnett, Eagle Ford, Haynesville, Marcellus, Niobrara and Utica Shales and Mid-Continent region of the U.S. The Partnership’s common units are listed on the New York Stock Exchange under the symbol ACMP. Further information is available at www.accessmidstream.com where the Partnership routinely posts announcements, updates, events, investor information and presentations and all recent press releases.

This press release includes forward-looking statements. Forward-looking statements give our current expectations or forecasts of future events. They include but are not limited to our business strategy and plans and objectives for future operations. We caution you not to place undue reliance on our forward-looking statements, which speak only as of the date of this release, and we undertake no obligations to update this information. Although we believe the expectations and forecasts reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to be correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Factors that could cause actual results to differ materially from expected results are described under “Risk Factors” in our 2012 Annual Report on Form 10-K and our other SEC filings.

   
 
Access Midstream Partners, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except per unit data)
(unaudited)
 
Three Months Ended
December 31,
2013     2012
Revenues(1) $ 328,078 $ 148,349
 
Operating Expenses
Operating expenses 89,576 54,421
Depreciation and amortization expense 80,574 45,194
General and administrative expense 31,039 29,253
Other operating (income) expense   348     (333 )
 
Total operating expenses   201,537     128,535  
 
Operating income 126,541 19,814
 
Other income (expense)
Income from unconsolidated affiliates 38,832 22,860
Interest expense (33,384 ) (17,926 )
Other income   196     146  
 
Income before income tax expense 132,185 24,894
Income tax expense   1,370     707  
 
Net income 130,815 24,187
Net income (loss) attributable to noncontrolling interests   1,758     (68 )
 
Net income attributable to Access Midstream Partners, L.P. $ 129,057   $ 24,255  
 
Limited partner interest in net income
Net income attributable to Access Midstream Partners, L.P. $ 129,057 $ 24,255
Less general partner interest in net income   (17,303 )   (2,934 )
 
Limited partner interest in net income $ 111,754   $ 21,321  
 
Net income per limited partner unit – basic and diluted
Common units $ 0.47 $ 0.11
Subordinated units $ $ 0.14
 
Weighted average limited partner units outstanding used for net income per unit calculation – basic and diluted (in thousands)
Common units 178,486 82,230
Subordinated units 69,076
(1)   Excludes revenues from equity investments of $73.7 million and $42.1 million for the three months ended December 31, 2013 and 2012, respectively, that is included in Income from Unconsolidated Affiliates.
 
If either Chesapeake Energy Corporation (“Chesapeake”) or Total E&P USA, Inc. (“Total”) does not meet its minimum volume commitment to the Partnership in the Barnett Shale region or Chesapeake does not meet its minimum volume commitment in the Haynesville Shale region under the relevant gas gathering agreement for specified annual periods, Chesapeake or Total is obligated to pay the Partnership a fee equal to the applicable fee for each mcf by which the applicable party’s minimum volume commitment for the year exceeds the actual volumes gathered on the Partnership’s systems. The Partnership recognizes any associated revenue in the fourth quarter. For the year ended December 31, 2013, we recognized revenue related to volume shortfall of $64.9 million. No revenue associated with minimum volume commitments was recognized in 2012 as volumes exceeded commitment levels.
   
 

Access Midstream Partners, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per unit data)

(unaudited)

 
Twelve Months Ended
December 31,
2013     2012
Revenues(1) $ 1,073,222 $ 608,447
 
Operating Expenses
Operating expenses 338,716 197,639
Depreciation and amortization expense 296,179 165,517
General and administrative expense 104,332 67,579
Other operating (income) expense   2,092     (766 )
 
Total operating expenses   741,319     429,969  
 
Operating income 331,903 178,478
 
Other income (expense)
Income from unconsolidated affiliates 130,420 67,542
Interest expense (116,778 ) (64,739 )
Other income   827     320  
 
Income before income tax expense 346,372 181,601
Income tax expense   5,223     3,214  
 
Net income 341,149 178,387
Net income (loss) attributable to noncontrolling interests   5,124     (68 )
 
Net income attributable to Access Midstream Partners, L.P. $ 336,025   $ 178,455  
 
Limited partner interest in net income
Net income attributable to Access Midstream Partners, L.P. $ 336,025 $ 178,455
Less general partner interest in net income   (40,681 )   (8,481 )
 
Limited partner interest in net income $ 295,344   $ 169,974  
 
Net income per limited partner unit – basic and diluted
Common units $ 1.01 $ 1.11
Subordinated units $ 0.93 $ 1.14
 
Weighted average limited partner units outstanding used for net income per unit calculation – basic and diluted (in thousands)
Common units 132,709 80,059
Subordinated units 42,770 69,076
(1)  

Excludes revenues from equity investments of $246.8 million and $140.5 million for the twelve months ended December 31, 2013 and 2012, respectively, that is included in Income from Unconsolidated Affiliates.

 
If either Chesapeake Energy Corporation (“Chesapeake”) or Total E&P USA, Inc. (“Total”) does not meet its minimum volume commitment to the Partnership in the Barnett Shale region or Chesapeake does not meet its minimum volume commitment in the Haynesville Shale region under the relevant gas gathering agreement for specified annual periods, Chesapeake or Total is obligated to pay the Partnership a fee equal to the applicable fee for each mcf by which the applicable party’s minimum volume commitment for the year exceeds the actual volumes gathered on the Partnership’s systems. The Partnership recognizes any associated revenue in the fourth quarter. For the year ended December 31, 2013, we recognized revenue related to volume shortfall of $64.9 million. No revenue associated with minimum volume commitments was recognized in 2012 as volumes exceeded commitment levels.
       
 
Access Midstream Partners, L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands)
(unaudited)
 
As of As of
December 31, December 31,
2013 2012
Assets
 
Total current assets $ 257,931   $ 219,766  
 
Property, plant and equipment
Gathering systems 5,974,940 5,125,746
Other fixed assets 175,411 96,916
Less: Accumulated depreciation   (859,551 )   (590,614 )
 
Total property, plant and equipment, net   5,290,800     4,632,048  
 
Investments in unconsolidated affiliates 1,936,603 1,297,811
Intangible customer relationships, net 372,391 355,217
Deferred loan costs, net   59,721     56,258  
 
Total assets $ 7,917,446   $ 6,561,100  
 
Liabilities and Partners’ Capital
 
Total current liabilities $ 306,472   $ 259,261  
 
Long-term liabilities
Long-term debt 3,249,230 2,500,000
Other liabilities   8,954     5,333  
 
Total long-term liabilities   3,258,184     2,505,333  
 
Total partners’ capital   4,352,790     3,796,506  
 
Total liabilities and partners’ capital $ 7,917,446   $ 6,561,100  
   
 
Access Midstream Partners, L.P.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
($ in thousands)
(unaudited)
 
Twelve Months Ended
December 31,
2013     2012
Cash flows from operating activities
Net income $ 341,149 $ 178,387
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 296,179 165,517
Income from unconsolidated affiliates (130,420 ) (67,542 )
Other non-cash items 20,577 8,296
Distribution of earnings received from unconsolidated affiliates 82,871
Changes in assets and liabilities
(Increase) decrease in accounts receivable (97,507 ) 18,484
(Increase) decrease in other assets 2,244 (9,925 )
Increase (decrease) in accounts payable (10,492 ) 8,800
Increase in accrued liabilities   59,361     16,113  
 
Net cash provided by operating activities   563,962     318,130  
 
Cash flows from investing activities
Additions to property, plant and equipment (1,058,599 ) (350,500 )
Acquisition of gathering system assets (2,160,000 )
Investments in unconsolidated affiliates (572,370 ) (185,039 )
Proceeds from sale of assets   74,551     9,574  
 
Net cash used in investing activities   (1,556,418 )   (2,685,965 )
 
Cash flows from financing activities
Proceeds from long-term borrowings 2,015,700 1,387,800
Payments on long-term borrowings (1,672,200 ) (2,100,700 )
Proceeds from issuance of common units 449,312 569,255
Proceeds from issuance of Class B units 343,000
Proceeds from issuance of Class C units 343,000
Proceeds from issuance of senior notes 414,094 2,150,000
Distribution to unitholders (389,128 ) (251,720 )
Capital contribution from noncontrolling interests 151,976
Payments on capital lease obligations (3,552 )
Payments on leasehold improvement financing (17,798 )
Debt issuance costs (12,414 ) (39,626 )
Other adjustments   8,701     31,798  
 
Net cash provided by financing activities   944,691     2,432,807  
 
Net increase (decrease) in cash and cash equivalents (47,765 ) 64,972
 
Cash and cash equivalents
Beginning of period   64,994     22  
 
End of period $ 17,229   $ 64,994  
   
 
Access Midstream Partners, L.P.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in thousands)
(unaudited)
 
Three Months Ended
December 31,
2013     2012
 
Net Income attributable to Access Midstream Partners, L.P. $ 129,057 $ 24,255
 
Adjusted for:
Interest expense 33,384 17,926
Income tax expense 1,370 707
Depreciation and amortization expense 80,574 45,194
Other (1,038 ) (387 )
Income from unconsolidated affiliates (38,832 ) (22,860 )
EBITDA from unconsolidated affiliates(1) (2) 60,791 36,766
Expense for non-cash equity awards 12,840
Implied minimum volume commitment (37,500 )
Acquisition transaction costs       17,432  
 
Adjusted EBITDA $ 240,646   $ 119,033  
 
Adjusted for:
Maintenance capital expenditures (27,500 ) (19,684 )
Cash portion of interest expense (31,433 ) (16,576 )
Income tax expense   (1,370 )   (707 )
 
 
Distributable cash flow $ 180,343   $ 82,066  
 
 
Cash provided by operating activities $ 205,956 $ 75,457
 
Adjusted for:
Change in assets and liabilities 56,531 (26,301 )
Distribution of earnings received from unconsolidated affiliates (78,134 )
Interest expense 33,384 17,926
Income tax expense 1,370 707
Other non-cash items (14,592 ) (2,954 )
EBITDA from unconsolidated affiliates(1) (2) 60,791 36,766
Expense for non-cash equity awards 12,840
Implied minimum volume commitment (37,500 )
Acquisition transaction costs       17,432  
 
Adjusted EBITDA $ 240,646   $ 119,033  
 
Adjusted for:
Maintenance capital expenditures (27,500 ) (19,684 )
Cash portion of interest expense (31,433 ) (16,576 )
Income tax expense   (1,370 )   (707 )
 
Distributable cash flow $ 180,343   $ 82,066  

 

Cash distribution
Limited partner units 2013: ($0.555 x 189,129,347 units) 2012: ($0.45 x 177,648,724 units) $ 104,967 $ 79,942
General partner interest   17,164     4,131  
 
Total cash distribution $ 122,131   $ 84,073  
 
Distribution coverage ratio   1.48     0.98  
 

(1) EBITDA from unconsolidated affiliates is calculated as follows:

Net Income $ 38,832

$

22,860

 
Adjusted for:
Depreciation and amortization expense 21,956 13,925
Other   3     (19 )
 
EBITDA from unconsolidated affiliates $ 60,791  

$

36,766

 
 
(2)   The Partnership maintains equity investments in 10 gathering systems in the Marcellus Shale, Utica East Ohio Midstream, LLC. and Ranch Westex JV, LLC.
   
 
Access Midstream Partners, L.P.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in thousands)
(unaudited)
 
Twelve Months Ended
December 31,
2013     2012
 
Net Income attributable to Access Midstream Partners, L.P. $ 336,025 $ 178,455
 
Adjusted for:
Interest expense 116,778 64,739
Income tax expense 5,223 3,214
Depreciation and amortization expense 296,179 165,517
Other (2,615 ) (820 )
Income from unconsolidated affiliates (130,420 ) (67,542 )
EBITDA from unconsolidated affiliates(1) (2) 202,453 116,887
Expense for non-cash equity awards 35,010
Implied minimum volume commitment
Acquisition transaction costs       17,432  
 
Adjusted EBITDA $ 858,633   $ 477,882  
 
Adjusted for:
Maintenance capital expenditures (110,000 ) (75,184 )
Cash portion of interest expense (108,285 ) (59,411 )
Income tax expense   (5,223 )   (3,214 )
 
 
Distributable cash flow $ 635,125   $ 340,073  
 
 
Cash provided by operating activities $ 563,962 $ 318,130
 
Adjusted for:
Change in assets and liabilities 46,394 (33,472 )
Distribution of earnings received from unconsolidated affiliates (82,871 )
Interest expense 116,778 64,739
Income tax expense 5,223 3,214
Other non-cash items (28,316 ) (9,048 )
EBITDA from unconsolidated affiliates(1) (2) 202,453 116,887
Expense for non-cash equity awards 35,010
Implied minimum volume commitment
Acquisition transaction costs       17,432  
 
Adjusted EBITDA $ 858,633   $ 477,882  
 
Adjusted for:
Maintenance capital expenditures (110,000 ) (75,184 )
Cash portion of interest expense (108,285 ) (59,411 )
Income tax expense   (5,223 )   (3,214 )
 
Distributable cash flow $ 635,125   $ 340,073  
 
Cash Distribution
Limited partner units $ 384,675 $ 266,412
General partner interest   42,504     10,449  
 
Total cash distribution $ 427,179   $ 276,861  
 
Distribution coverage ratio   1.49     1.23  
 

(1) EBITDA from unconsolidated affiliates is calculated as follows:

Net Income $ 130,420 $ 67,542
 
Adjusted for:
Depreciation and amortization expense 72,053 49,458
Other   (20 )   (113 )
 
EBITDA from unconsolidated affiliates $ 202,453   $ 116,887  
 
(2)   The Partnership maintains equity investments in 10 gathering systems in the Marcellus Shale, Utica East Ohio Midstream, LLC. and Ranch Westex JV, LLC.
       
 
Access Midstream Partners, L.P.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in thousands)
(unaudited)
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2013     2012 2013     2012
($ in thousands)
 
GAAP capital expenditures $ 247,488 $ 118,868 $ 1,058,599 $ 350,500
 
Adjusted for:
Capital expenditures included in unconsolidated affiliates 135,430 93,686 671,394 384,403
Capital expenditures attributable to noncontrolling interest   (37,376 )     (151,584 )  
 
Net capital expenditures $ 345,542   $ 212,554 $ 1,578,409   $ 734,903
 
 
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2013 2012 2013 2012
($ in thousands)
 
Revenues $ 328,078 $ 148,349 $ 1,073,222 $ 608,447
 
Adjusted for:
Revenues included in investments in unconsolidated affiliates   73,734     42,084   246,769     140,541
 
Total revenues including revenues from equity investments $ 401,812   $ 190,433 $ 1,319,991   $ 748,988
       
 
Access Midstream Partners, L.P.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in thousands)
(unaudited)
 
Twelve Months Ended Twelve Months Ended
December 31, December 31,
2014 (Low)     2014 (High) 2015 (Low)     2015 (High)
($ in thousands)
 
GAAP capital expenditures $ 1,030,000 $ 1,130,000 $ 855,000 $ 955,000
 
Adjusted for:
Capital expenditures included in unconsolidated affiliates 425,000 450,000 200,000 225,000
Capital expenditures attributable to noncontrolling interest   (225,000 )   (250,000 )   (125,000 )   (150,000 )
 
Net capital expenditures $ 1,230,000   $ 1,330,000   $ 930,000   $ 1,030,000  
 
 
 
Twelve Months Ended Twelve Months Ended
December 31, December 31,
2014 (Low)

2014 (High)

2015 (Low)

2015 (High)
($ in thousands)
 
Net income attributable to Access Midstream Partners, L.P. $ 420,000 $ 595,000 $ 545,000 $ 720,000
 
Adjusted for:
Interest expense 200,000 150,000 225,000 175,000
Income tax expense 5,000 5,000 5,000 5,000
Depreciation and amortization expense   375,000     350,000     425,000     400,000  
 
Adjusted EBITDA $ 1,000,000   $ 1,100,000   $ 1,200,000   $ 1,300,000  
   
 
Access Midstream Partners, L.P.
SEGMENT INFORMATION AND OPERATING STATISTICS
(unaudited)
 
Three Months Ended
December 31,
2013     2012
Barnett Shale
Operating income 105,385 38,577
Income from unconsolidated affiliates
Capital expenditures(1) 4,891 17,894
Throughput, bcf per day 1.025 1.005
Approximate miles of pipe at end of period 859 850
Gas compression (horsepower) at end of period 150,945 161,275
 
Eagle Ford Shale
Operating income 48,474 4,660
Income from unconsolidated affiliates
Capital expenditures(1) 69,849 11,796
Throughput, bcf per day 0.271 0.023
Approximate miles of pipe at end of period 870 618
Gas compression (horsepower) at end of period 93,847 38,007
 
Haynesville Shale
Operating income (loss) (5,400 ) 3,384
Income from unconsolidated affiliates
Capital expenditures(1) 3,677 6,097
Throughput, bcf per day 0.584 0.422
Approximate miles of pipe at end of period 582 575
Gas compression (horsepower) at end of period 20,195 34,395
 
Marcellus Shale
Operating income (loss) (445 ) 589
Income from unconsolidated affiliates 39,373 22,910
Capital expenditures(1) 47,646 93,686
Throughput, bcf per day(2) 1.150 0.859
Approximate miles of pipe at end of period 823 549
Gas compression (horsepower) at end of period 136,090 53,710
 
Niobrara Shale
Operating income (loss) 2,831 (48 )
Income from unconsolidated affiliates
Capital expenditures(1) 7,539 1,967
Throughput, bcf per day(2) 0.024
Approximate miles of pipe at end of period 132 79
Gas compression (horsepower) at end of period 15,665 4,625
 
Utica Shale
Operating income 2,658 146
Loss from unconsolidated affiliates (1,299 ) (38 )
Capital expenditures(1) 140,301 126
Throughput, bcf per day(2) 0.158 0.006
Approximate miles of pipe at end of period 265 62
Gas compression (horsepower) at end of period 63,505
 
Mid-Continent
Operating income 18,217 12,742
Income (loss) from unconsolidated affiliates 758 (12 )
Capital expenditures(1) 19,075 71,237
Throughput, bcf per day 0.575 0.570
Approximate miles of pipe at end of period 2,805 2,584
Gas compression (horsepower) at end of period 108,735 103,456
 
Corporate
Operating loss (45,179 ) (40,236 )
Capital expenditures(1) 52,564 9,751
 
Total
Operating income 126,541 19,814
Income from unconsolidated affiliates 38,832 22,860
Capital expenditures(1) 345,542 212,554
Throughput, bcf per day(2) 3.787 2.885
Approximate miles of pipe at end of period 6,336 5,317
Gas compression (horsepower) at end of period 588,982 395,468

(1)

  Includes capital expenditures accounted for as part of the Partnership’s equity investments and excludes capital expenditures attributable to noncontrolling interests. See page 11 of this release for required reconciliation to GAAP capital expenditures.
 

(2)

Throughput in all regions represents the net throughput allocated to the Partnership’s interest. Throughput for 2012 includes 12 days of activity for assets we acquired in December 2012.
   
 

Access Midstream Partners, L.P.

SEGMENT INFORMATION AND OPERATING STATISTICS

(unaudited)

 

Twelve Months Ended
December 31,
2013     2012
Barnett Shale
Operating income 238,842 200,421
Income from unconsolidated affiliates
Capital expenditures(1) 50,627 98,507
Throughput, bcf per day 1.045 1.195
Approximate miles of pipe at end of period 859 850
Gas compression (horsepower) at end of period 150,945 161,275
 
Eagle Ford Shale
Operating income 167,790 4,660
Income from unconsolidated affiliates
Capital expenditures(1) 316,002 11,796
Throughput, bcf per day 0.263 0.006
Approximate miles of pipe at end of period 870 618
Gas compression (horsepower) at end of period 93,847 38,007
 
Haynesville Shale
Operating income (loss) (2,737 ) 19,332
Income from unconsolidated affiliates
Capital expenditures(1) 17,186 23,578
Throughput, bcf per day 0.669 0.378
Approximate miles of pipe at end of period 582 575
Gas compression (horsepower) at end of period 20,195 34,395
 
Marcellus Shale
Operating income 4,774 589
Income from unconsolidated affiliates 133,036 67,592
Capital expenditures(1) 292,332 384,403
Throughput, bcf per day(2) 1.019 0.701
Approximate miles of pipe at end of period 823 549
Gas compression (horsepower) at end of period 136,090 53,710
 
Niobrara Shale
Operating income (loss) 1,721 (48 )
Income from unconsolidated affiliates
Capital expenditures(1) 29,557 1,967
Throughput, bcf per day(2) 0.015
Approximate miles of pipe at end of period 132 79
Gas compression (horsepower) at end of period 15,665 4,625
 
Utica Shale
Operating income 15,547 146
Loss from unconsolidated affiliates (3,842 ) (38 )
Capital expenditures(1) 597,592 126
Throughput, bcf per day(2) 0.107 0.001
Approximate miles of pipe at end of period 265 62
Gas compression (horsepower) at end of period 63,505
 
Mid-Continent
Operating income 64,831 51,291
Income (loss) from unconsolidated affiliates 1,226 (12 )
Capital expenditures(1) 111,591 184,285
Throughput, bcf per day 0.581 0.564
Approximate miles of pipe at end of period 2,805 2,584
Gas compression (horsepower) at end of period 108,735 103,456
 
Corporate
Operating loss (158,865 ) (97,913 )
Capital expenditures(1) 163,522 30,241
 
Total
Operating income 331,903 178,478
Income from unconsolidated affiliates 130,420 67,542
Capital expenditures(1) 1,578,409 734,903
Throughput, bcf per day(2) 3.699 2.845
Approximate miles of pipe at end of period 6,336 5,317
Gas compression (horsepower) at end of period 588,982 395,468
(1)   Includes capital expenditures accounted for as part of the Partnership’s equity investments and excludes capital expenditures attributable to noncontrolling interests. See page 11 of this release for required reconciliation to GAAP capital expenditures.
(2) Throughput in all regions represents the net throughput allocated to the Partnership’s interest. Throughput for 2012 includes 12 days of activity for assets we acquired in December 2012.

Contacts

Access Midstream Partners, L.P.
Investor Contact:
Dave Shiels, CFO, 405-727-1740
dave.shiels@accessmidstream.com
or
Media Contacts:
Debbie Nauser, 405-727-1612
debbie.nauser@accessmidstream.com
or
Tom Johnson, 212-371-5999
tbj@abmac.com

Sharing

Contacts

Access Midstream Partners, L.P.
Investor Contact:
Dave Shiels, CFO, 405-727-1740
dave.shiels@accessmidstream.com
or
Media Contacts:
Debbie Nauser, 405-727-1612
debbie.nauser@accessmidstream.com
or
Tom Johnson, 212-371-5999
tbj@abmac.com