Antero Midstream Partners LP (AM) has reported 49.67 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $73.35 million in the quarter, compared with $49.01 million for the same period last year. Revenue during the quarter grew 26.70 percent to $166.85 million from $131.69 million in the previous year period. Gross margin for the quarter expanded 843 basis points over the previous year period to 78.04 percent. Total expenses were 49.72 percent of quarterly revenues, down from 60.59 percent for the same period last year. This has led to an improvement of 1087 basis points in operating margin to 50.28 percent.
Operating income for the quarter was $83.90 million, compared with $51.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $126.29 million compared with $83.20 million in the prior year period. At the same time, adjusted EBITDA margin improved 1252 basis points in the quarter to 75.69 percent from 63.17 percent in the last year period.
Commenting on the Joint Venture, Paul Rady, Chairman and Chief executive officer, said, “Antero Midstream took another step in becoming a full value chain Appalachian midstream provider and diversifying its cash flow contribution with the addition of processing and fractionation services. The Joint Venture supports Antero Midstream’s long term annual distribution growth target of 28% to 30% through 2020 while targeting a DCF coverage ratio greater than 1.25x and leverage in the low 2-times. In addition, the Joint Venture increases Antero Midstream’s organic investment opportunity set to $2.7 billion from 2017 through 2020 and is another example of leveraging Antero Resources’ status as the leader in C3+ NGL production and drilling inventory in Appalachia.”
Operating cash flow improves significantly
Antero Midstream Partners LP has generated cash of $378.61 million from operating activities during the year, up 45.80 percent or $118.93 million, when compared with the last year. The company has spent $478.16 million cash to meet investing activities during the year as against cash outgo of $445.46 million in the last year.
Cash flow from financing activities was $106.72 million for the year as against cash outgo of $37.53 million in the last year period.
Cash and cash equivalents stood at $14.04 million as on Dec. 31, 2016, up 104.01 percent or $7.16 million from $6.88 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Antero Midstream Partners LP was negative $2.06 million on Dec. 31, 2016 compared with negative $23.31 million on Dec. 31, 2015. Current ratio was at 0.97 as on Dec. 31, 2016, up from 0.76 on Dec. 31, 2015.
Days sales outstanding went down to 18 days for the quarter compared with 24 days for the same period last year.
At the same time, days payable outstanding went up to 21 days for the quarter from 13 for the same period last year.
Debt increases substantially
Antero Midstream Partners LP has witnessed an increase in total debt over the last one year. It stood at $849.91 million as on Dec. 31, 2016, up 37.08 percent or $229.91 million from $620 million on Dec. 31, 2015. Antero Midstream Partners LP has witnessed an increase in long-term debt over the last one year. It stood at $849.91 million as on Dec. 31, 2016, up 37.08 percent or $229.91 million from $620 million on Dec. 31, 2015. Total debt was 36.17 percent of total assets as on Dec. 31, 2016, compared with 31.31 percent on Dec. 31, 2015. Interest coverage ratio deteriorated to 9.31 for the quarter from 17.95 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
