Noble Midstream Partners LP (NBLX) Reports Q1 Revenues Beat

Noble Midstream Partners LP (NASDAQ: NBLX) reported Q1 EPS of $0.11, $0.45 worse than the analyst estimate of $0.56. Revenue for the quarter came in at $224.05 million versus the consensus estimate of $178.6 million.

First-Quarter 2020 and Recent Highlights

• Gathered 335 thousand barrels of gross oil and gas equivalent per day (MBoe/d) and 204 thousand barrels of produced water per day (MBw/d)
• Generated $10 million of Net Income, $107 million of Adjusted Net EBITDA1 and $94 million of Distributable Cash Flow1 attributable to the Partnership
• Closed the acquisition of Black Diamond’s 20% interest in the Saddlehorn Pipeline in the DJ Basin, increasing Noble Midstream’s exposure to high-quality, contracted cash flows
• Commenced full service from the EPIC Crude pipeline (30% interest), connecting the Delaware Basin to Gulf Coast refining and export capacity
• Commenced full service on the Delaware Crossing intermediate oil pipeline (50% interest), connecting the southern Delaware Basin to a growing pricing hub in Wink, Texas

“Noble Midstream extended the positive momentum from the back half of 2019 and began 2020 with strong first quarter results. We have adjusted to the current macro challenges and will continue to focus on safely executing projects and managing daily operations for all of our customers. We offer best-in-class connectivity to major market hubs, with improving operational and cost efficiencies in each part of the business.” stated Brent J. Smolik, Chief Executive Officer of the general partner of Noble Midstream.

Full-Year 2020 Updated Guidance Highlights

• Lowered 2020 net organic capital by an incremental $65 million, totaling $140 million or more than 65% from original 2020 guidance, to a range of $60 to $80 million
• Reduced annual operating expenses outlook by ~15% or $15 to $20 million through continued efficiencies, deferred work, and G&A cost reductions
• Preserved approximately $200 million in cash flow in 2020 by reducing the quarterly distribution nearly 75% to $0.1875 per unit and suspending the growth rate
• Revised the 2020 net adjusted EBITDA range to $370 to $410 million and DCF range to $280 to $310 million
• Tightened the Equity Investment capital range to $240 million to $260 million to reflect the completion of the EPIC Crude mainline and closing of the Saddlehorn acquisition

“Noble Midstream responded quickly to the challenging market environment by reducing organic capital, deferring project expenditures and reducing our quarterly distribution. These measures minimize the cash flow impact from lower expected producer activity and enable the Partnership to reduce total debt, even in a low to no activity environment. Our portfolio benefits from strong base volumes from our gathering business and growing cash flow from our transmission segments. With the flex down of our organic capital program, and our equity-investment pipelines online, Noble Midstream is positioned to self fund, including distributions, starting this quarter.” stated Smolik.

For earnings history and earnings-related data on Noble Midstream Partners LP (NBLX) click here.

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