Noble Midstream Partners LP (NBLX) Misses Q3 EPS by 3c, Revenues Beat

Noble Midstream Partners LP (NYSE: NBLX) reported Q3 EPS of $0.88, $0.03 worse than the analyst estimate of $0.91. Revenue for the quarter came in at $169.32 million versus the consensus estimate of $148.69 million.

Third Quarter Highlights Include:

• Net Income was $66 million ($41 million to the Partnership) and Adjusted EBITDA¹ came in at $94 million, a 35% and 31% increase over the third quarter of 2018, driven by record gathering and produced water volumes of 319 MBoe/d and 180 MBw/d, respectively. Adjusted EBITDA attributable to the Partnership was $60 million. Distributable cash flow (DCF)¹ increased sequentially to $50 million, above the top end of the guidance range.
• A 15% reduction in per well connection capital drove quarterly organic capital below the low end of guidance. FY19 organic capital expenditure has been reduced by 25% versus original guidance.
• Declared a 20% annual increase in distribution per unit to $0.6716, with DCF of $50 million and a Distribution Coverage Ratio¹ of 1.6x.
• Entered into a strategic relationship in August with Saddlehorn Pipeline, through Black Diamond Gathering, including an option for up to 20% ownership, and expanded the Black Diamond Gathering oil gathering dedication by 85,000 acres, or 54%.
• EPIC Y-Grade interim crude service started up on time in 3Q19 with permanent crude service on schedule for 1Q20 startup.

“Our high-quality assets in the DJ and Delaware Basins and operational execution drove the outperformance in our year-to-date and third quarter results through continued focus on efficiencies and accomplishing higher throughput volumes with less capital. The outlook for our business remains strong and increasingly resilient, as we add high-quality cash flows from new services and customers. Consistent customer activity in our gathering business, along with the team’s work to deliver strong execution and drive enhanced capital efficiency during 2019, provides a solid foundation as we enter a transformational year in 2020 when major project capital rolls off and the inflection in cash flow begins,” stated Brent Smolik, Chief Executive Officer of Noble Midstream.

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

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