Antero Midstream Partners (AM) Raises FY16 Guidance

September 6, 2016 7:33 AM EDT
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Antero Midstream Partners LP (NYSE: AM) today announced increased 2016 guidance.

Highlights Include:

  • Increased net income guidance by $35 to $40 million to a range of $205 - $225 million
  • Increased 2016 adjusted EBITDA guidance by $35 to $40 million to a range of $365 - $385 million
  • Increased 2016 distributable cash flow guidance by $35 to $40 million to a range of $315 - $335 million
  • Maintained previous 2016 year-over-year distribution growth guidance of 30% and capital expenditure guidance of $480 million

Increased 2016 Guidance

Antero Midstream is forecasting net income of $205 million to $225 million, a 21% increase from previous guidance. The Partnership is forecasting 2016 adjusted EBITDA of $365 million to $385 million and distributable cash flow of $315 million to $335 million, increases of $35 to $40 million, or 11% and 13%, respectively, compared to the previous 2016 guidance. The increase in guidance is primarily due to an increase in expected fresh water delivery volumes to Antero Resources driven by higher proppant intensity requirements for advanced completions as well as increased gathering and compression throughput. In a separate release, Antero Resources announced an increase in 2016 production guidance from 1.75 Bcfe/d to 1.80 Bcfe/d, which represents 20% year-over-year production growth. The Partnership expects year over year distribution growth in 2016 of 30% and estimated DCF coverage of 1.55x to 1.65x. In addition, the Partnership is targeting 2017 year-over-year distribution growth of 28% to 30%.

Full Year 2016

Updated Guidance

Prior Guidance

Increase

Net Income ($MM)

$205 – $225

$165 – $190

$35 – $40

Adjusted EBITDA ($MM)

$365 – $385

$325 – $350

$35 – $40

Distributable Cash Flow ($MM)

$315 – $335

$275 – $300

$35 – $40

Year over Year Distribution Growth

30%

30%

2016 DCF Coverage Ratio

1.55x – 1.65x

1.40x – 1.50x

0.15x

Capital Expenditures ($MM)

$480

$480

Please see the Non-GAAP disclosures section of this news release.

Commenting on increased guidance, Paul Rady, Chairman of the Board and CEO said, "Antero Midstream continues to benefit from the operational improvements and efficiencies at Antero Resources, which continues to be the most active operator in Appalachia. Focusing on the second half of 2016, we expect Antero Midstream's water business to benefit from increased water volumes as Antero Resources pilots additional advanced completion techniques utilizing more water and sand per lateral foot in completions compared to the previous forecast. Additionally, Antero Resources' increased production guidance for 2016 increases expected throughput at Antero Midstream and builds further momentum heading into 2017."

In conjunction with Antero Midstream's guidance update, Antero Resources released a guidance update which can be found at www.anteroresources.com.



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