MarkWest Energy Partners, L.P. Reports Unaudited Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Revised Earnings Guidance for the Year of 2014; Provides Earnings Guidance for the Year of 2015; Provides Capex Guidance for the Full Year of 2016
Nov 5 14
MarkWest Energy Partners, L.P. reported unaudited earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported total revenue of $607,086,000 compared to $420,516,000 a year ago. Income from operations was $139,495,000 compared to $7,763,000 a year ago. Income before provision for income tax was $97,078,000 compared to loss before provision for income tax of $30,283,000 a year ago. Net income attributable to the partnership's unit holders was $77,434,000 or $0.41 per diluted common unit compared to net loss attributable to the partnership's unit holders of $23,604,000 or $0.17 per diluted common unit a year ago. Net cash flow provided by operating activities was $139,257,000 compared to $153,063,000 a year ago. Adjusted EBITDA was $235,519,000 compared to $153,936,000 a year ago. Distributable cash flow was $195,223,000 compared to $117,897,000 a year ago. Maintenance capital expenditures were $5,312,000 compared to $7,080,000 a year ago. Operating income before items not allocated to segments was $256.9 million, an increase of $75.0 million when compared to $181.9 million over the same period in 2013. This increase was primarily attributable to higher processing volumes.
For the nine months, the company reported total revenue of $1,637,928,000 compared to $1,208,909,000 a year ago. Income from operations was $267,122,000 compared to $211,448,000 a year ago. Income before provision for income tax was $135,648,000 compared to $56,924,000 a year ago. Net income attributable to the partnership's unit holders was $98,903,000 or $0.54 per diluted common unit compared to $44,637,000 or $0.29 per diluted common unit a year ago. Net cash flow provided by operating activities was $496,080,000 compared to $330,659,000 a year ago. Adjusted EBITDA was $631,316,000 compared to $450,477,000 a year ago. Distributable cash flow was $505,402,000 compared to $356,113,000 a year ago. Maintenance capital expenditures were $15,064,000 compared to $13,175,000 a year ago. Operating income before items not allocated to segments was $694,897,000 compared to $521,067,000 a year ago.
The partnership has increased its forecast of 2014 adjusted EBITDA to a range of $860 million to $880 million and has narrowed its 2014 DCF forecast to a range of $680 million to $700 million. The partnership's portion of growth capital expenditures for 2014 is forecasted in a range of $2.0 billion to $2.3 billion. Maintenance capital for 2014 is forecasted at approximately $25 million.
For 2015, the partnership forecasts adjusted EBITDA in a range of $1.0 to $1.1 billion and DCF in a range of $800 million to $880 million based on its current forecast of operational volumes and prices for natural gas liquids, crude oil, natural gas, and derivative instruments currently outstanding. The partnership's portion of growth capital expenditures for 2015 is forecasted in a range of $1.8 billion to $2.3 billion. Maintenance capital for 2015 is forecasted at approximately $30 million.
Additionally, its preliminary forecast for 2016 growth CapEx will be approximately $2 billion.
MarkWest Energy Partners, L.P. Presents at Wells Fargo Securities Research, Economics & Strategy 2014 Energy Symposium, Dec-09-2014 08:40 AM
Oct 25 14
MarkWest Energy Partners, L.P. Presents at Wells Fargo Securities Research, Economics & Strategy 2014 Energy Symposium, Dec-09-2014 08:40 AM. Venue: The Waldorf Astoria, 301 Park Avenue, New York, NY 1002, United States. Speakers: Frank M. Semple, Chairman of Markwest Energy GP LLC, Chief Executive Officer of Markwest EnergyGP LLC, President of Markwest Energy GP LLC, Chief Executive Officer of Markwest Hydrocarbon and President of Markwest Hydrocarbon, Joshua P. Hallenbeck, Vice President of Finance - Markwest Energy GP LLC and Treasurer of Markwest Energy GP LLC, Nancy K. Buese, Chief Financial Officer of Markwest Energy GP LLC and Executive Vice President of Markwest Energy GP LLC.
MarkWest Energy Partners, L.P. Increases Quarterly Cash Distribution for the Third Quarter of 2014, Payable on November 14, 2014; Provides Earnings Guidance for the Year 2014; Provides Operational Update
Oct 22 14
MarkWest Energy Partners, L.P. announced that the Board of Directors of the General Partner of company declared a cash distribution of $0.89 per common unit for the third quarter of 2014, for an implied annual rate of $3.56 per common unit. The third quarter 2014 distribution represents an increase of $0.04 per common unit, or 4.7%, compared to the third quarter 2013 distribution and an increase of $0.01 per common unit, or 1.1%, compared to the second quarter 2014 distribution. The third quarter 2014 distribution is payable on November 14, 2014, to unitholders of record on November 5, 2014. The ex-dividend date is November 3, 2014.
As a result of strong year-to-date operational and financial performance, the Partnership is increasing its 2014 DCF guidance to a range of $680 to $700 million and 2014 Adjusted EBITDA to a range of $860 to $880 million. Achieving the mid-point of these revised ranges would result in year-over-year DCF growth of 43% and year-over-year Adjusted EBITDA growth of 44%.
The company provided operational update. The partnership continues to develop its leading midstream presence in the Northeast with the addition of critical gathering, processing, fractionation, and NGL transportation infrastructure to support over 20 producer customers in the Marcellus and Utica Shales. Due to accelerating gas volumes from producer customers, utilization of the Partnership's processing and fractionation assets in the Northeast continues to increase. In the Marcellus Shale, total average utilization of all processing facilities increased from 79% to approximately 84% over the second to third quarters 2014. In the Utica Shale, total average utilization of processing facilities increased from 56% to approximately 63% over the same period. The Partnership's propane and heavier NGL fractionation capacity has also experienced a significant gain in average utilization, increasing from 75% to approximately 90% over the second to third quarters 2014. At the Sherwood complex in Doddridge County, West Virginia the Partnership completed an expansion in August with the startup of Sherwood IV, a new 200 million cubic feet per day (MMcf/d) processing plant. The Sherwood complex currently consists of four plants totaling 800 MMcf/d of processing capacity and supports growing rich-gas production from Antero Resources Corporation (Antero) and other producers. Antero's significant Marcellus development program throughout northern West Virginia continues to anchor the rapid growth of volumes at the Sherwood complex. Prior to the end of 2014, the Partnership is expected to complete Sherwood V and next year is scheduled to commence operations of plants VI and VII. Upon completion of these facilities, the Sherwood complex will have 1.4 billion cubic feet of total processing capacity. In addition to gas processing infrastructure, the Partnership is also developing 40,000 barrels per day (Bbl/d) of ethane fractionation capacity at the Sherwood complex by the third quarter of 2015. At the Cadiz complex in Harrison County, Ohio, MarkWest Utica EMG, a joint venture between the Partnership and The Energy & Minerals Group, is in startup mode for Cadiz II, a 200 MMcf/d processing plant that supports Gulfport Energy Corporation (Gulfport Energy) and other producers. The new facility increases total processing capacity at the Cadiz complex in Harrison County, Ohio to 325 MMcf/d. MarkWest Utica EMG is currently constructing Cadiz III, a 200 MMcf/d plant that is scheduled to become operational in the first quarter of 2015. The Partnership now has 19 major infrastructure projects under development in the Northeast, with three projects scheduled to be completed by the end of 2014.