Noble Midstream Partners Reports Record Third Quarter 2017 Results and Provides Updated Fourth Quarter 2017 Guidance

Oct 30, 2017 at 8:00 AM EDT

HOUSTON--(BUSINESS WIRE)-- Noble Midstream Partners LP (NYSE: NBLX) (Noble Midstream or the Partnership) today reported third quarter 2017 financial and operational results and provided updated fourth quarter 2017 guidance.

The Partnership's results are consolidated to include the non-controlling interests in the Partnership's development companies (DevCos) retained by Noble Energy, Inc. (Noble Energy); however, certain results are shown as "attributable to the Partnership," which excludes the non-controlling interests in the DevCos retained by Noble Energy. Noble Midstream believes the results "attributable to the Partnership" provide the best representation of the ongoing operations from which the Partnership's unitholders will benefit.

Third Quarter Records Include:

  • Net Income of $44 million, or $42 million attributable to the Partnership
  • Net Cash Provided by Operating Activities of $50 million
  • EBITDA1 of $48 million, or $46 million attributable to the Partnership, an increase over the prior quarter of 36% attributable to the Partnership
  • Distribution per unit of $0.4665, a 4.7% increase from the second quarter 2017 distribution and 24% above the minimum quarterly cash distribution
  • Distributable Cash Flow (DCF)1 attributable to the Partnership of $41 million, resulting in distribution coverage1 of 2.4x
  • Oil and gas gathering volumes of 95 thousand barrels of oil equivalent per day (MBoe/d), a 29% increase over second quarter 2017 volumes
  • Produced water gathering volumes of 27 thousand barrels of water per day (MBw/d), more than double second quarter 2017 volumes

Other Recent Highlights:

  • Successful startup of two major projects in the third quarter - the Billy Miner central gathering facility (CGF), the Partnership's first CGF in the Delaware Basin and the Partnership's oil and produced water gathering system in the DJ Basin for its third-party customer
  • Added gas compression service to the Partnership's service offering, beginning in 2018, for Noble Energy in the Delaware Basin, through Trinity River DevCo

"I'm proud of the successful completion of our first two major growth projects, core to our initial 20% distribution per unit growth outlook. Both projects were completed on budget and on schedule, and with increased throughput expectations, we anticipate strong returns on both projects," stated Terry R. Gerhart, Chief Executive Officer of the general partner of Noble Midstream.

"Over the last twelve months, we have enhanced Noble Midstream's outlook while maintaining a strong financial position, highlighted by third quarter distribution coverage of 2.4x and annualized leverage2 of 1.1x," added Gerhart.

Third Quarter 2017 Results

In the third quarter, oil and gas gathering volumes averaged 95 MBoe/d, a 29% increase above the prior quarter and produced water gathering volumes more than doubled from the prior quarter, averaging 27 MBw/d.

Third quarter volume growth in the Partnership's gathering segment was driven by (1) the startup of the oil and produced water gathering system for the Partnership's third-party customer in the DJ Basin through Laramie River DevCo, (2) the startup of the first CGF, gathering oil, gas and produced water in the Delaware Basin through Blanco River DevCo, and (3) connecting 65 equivalent wells, normalized to 4,500 lateral feet, in Colorado River DevCo.

Fresh water delivered in the third quarter averaged 175 MBw/d, a decrease of 5% from the prior quarter, primarily resulting from reduced completion activity in the DJ Basin by both Noble Energy and the Partnership's third-party customer in August and September. The Partnership delivered fresh water to 49 Noble Energy equivalent wells in the third quarter, including 30 equivalent wells in Wells Ranch averaging 260 MBw per equivalent well, and 19 equivalent wells on federal leases in the East Pony area, averaging 114 MBw per equivalent well.

In the third quarter, Noble Midstream's Billy Miner CGF was connected to the Advantage Pipeline, where total pipeline throughput averaged 36 thousand barrels of oil per day (MBbl/d).

Third quarter revenue was $63 million, including $39 million in gathering revenue and $22 million in fresh water delivery revenue. Total operating expenses were $20 million, which included $14 million in direct operating expense, resulting in operating income of $43 million in the third quarter, an increase of 14% from the prior quarter. Third quarter investment income of $2 million is primarily comprised of $1 million from the Partnership's minority ownership in White Cliffs Pipeline LLC and $1 million from the Partnership's 50% ownership in the Advantage joint venture.

Net income for the third quarter was $44 million, or $42 million attributable to the Partnership, or $1.15 per limited partner unit. Net cash provided by operating activities was $50 million in the third quarter.

EBITDA was $48 million in the third quarter, or 15% above the prior quarter, while EBITDA attributable to the Partnership grew 36% above the second quarter to $46 million, or $31 million excluding fresh water delivery. The additional growth attributable to the Partnership is a result of Noble Midstream's previously announced acquisition of additional DevCo interest in Colorado River DevCo and Blanco River DevCo which closed on June 26, 2017.

In the third quarter, cash interest expense attributable to the Partnership was $1.4 million and maintenance capital expenditures attributable to the Partnership totaled $4 million, resulting in DCF attributable to the Partnership of $41 million and a distribution coverage ratio of 2.4x.

Capital Expenditures

Capital expenditures in the third quarter totaled $94 million, or $59 million attributable the Partnership, primarily due to the following items:

  • Laramie River DevCo - Completion of the Partnership's third-party oil and produced water gathering system in the DJ Basin which finished on an accelerated schedule. The Partnership connected four well pads in the third quarter.
  • Blanco River DevCo - Completion of the first CGF, Billy Miner I, construction on the second CGF, Jesse James, and associated gathering infrastructure for both facilities. Additionally, long-lead procurement for the three CGFs scheduled to be online by the first half of 2018 continued.
  • Trinity River DevCo - Completion of Noble Midstream's 15-mile connection between the Billy Miner I CGF and the Advantage Pipeline which became operational in August.
  • Colorado River DevCo - Well connections in Noble Energy's Wells Ranch (42 equivalent wells) and East Pony (23 equivalent wells) development areas.
  • Green River DevCo - Construction on fresh water delivery infrastructure expansion in Noble Energy's Mustang area and procurement and construction on the oil, gas and produced water gathering systems. The freshwater expansion is expected to be operational in December and the gathering system is expected to be operational in early 2018.
                         
                       

3Q Capital
Expenditures ($ MM)

DevCo       Basin      

NBLX
Ownership

      Gross Net
Laramie River       DJ       100%       $28 $28
Blanco River       Delaware       40%       $43 $17
Trinity River       Delaware       100%       $6 $6
Colorado River       DJ       100%       $5 $5
Green River       DJ       25%       $12 $3
Total Capital Expenditures       $94 $59
           

Liquidity

As of September 30, 2017, the Partnership had $161 million of liquidity with $11 million in cash on hand and $150 million undrawn under its $350 million unsecured revolving credit facility.

Quarterly Distribution

On October 26, 2017, the Board of Directors of Noble Midstream's general partner, Noble Midstream GP LLC, declared a third quarter cash distribution of $0.4665 per unit, a 4.7% increase from the second quarter 2017.

The third quarter distribution is payable on November 13, 2017, to unitholders of record as of November 6, 2017.

Compression

In October 2017, the Partnership, through Trinity River DevCo, entered into a Gas Compression Services agreement with Noble Energy. Beginning in 2018, the Partnership will provide gas compression services for a fixed per unit fee across Noble Energy's Delaware Basin acreage.

2017 Guidance

Gathering volumes are expected to continue to grow in the fourth quarter primarily as a result of a full quarter of contribution from growth projects in Laramie River DevCo and Blanco River DevCo. Additionally, the Jesse James CGF in Blanco River DevCo is expected to contribute volumes in December.

In total, fourth quarter oil and gas gathering volumes are expected to average 110 to 120 MBoe/d, 15% to 26% above the third quarter average. After third quarter produced water gathering volumes more than doubled from the second quarter, fourth quarter volumes are expected to grow between 41% and 79% above the third quarter records.

Full year 2017 oil and gas gathering volumes are now anticipated to average 86 to 88 MBoe/d, approximately 40% above the 2016 average, and produced water is now expected to average 22 to 24 MBw/d.

Oil throughput on the Advantage Pipeline is expected to average 50 to 60 MBbl/d in the fourth quarter, approximately 44% above the third quarter average. Plains All American, L.P.'s connection into the Advantage Pipeline from its Wolfbone Ranch Station was completed in October.

As previously announced, both Noble Energy and the Partnership's third-party customer reduced completion activity in August 2017, and activity levels are expected to remain consistent from August through year-end. As a result, fourth quarter fresh water delivery volumes are expected to decrease approximately 26% from the third quarter.

Gathering volume growth is expected to more than offset the decline in fresh water delivery, as growth in key financial metrics is anticipated in the fourth quarter 2017. Net income in the fourth quarter is expected between $43 million and $47 million, and $160 million and $164 million for the full year 2017.

Fourth quarter EBITDA is expected to range between $48 million and $55 million, approximately 7% above the third quarter, while EBITDA attributable to the Partnership is anticipated to range between $45 million and $52 million, approximately 5% above the third quarter.

Full year 2017 EBITDA is expected between $175 million and $182 million, or $151 million and $158 million attributable to the Partnership. DCF and distribution coverage is anticipated in the fourth quarter between $39 million and $45 million and 2.2x and 2.5x, respectively, and between $134 million and $140 million and 2.1x and 2.2x, respectively, for the full year 2017.

The full year 2017 midpoint guidance for capital and capital attributable to the Partnership has increased by $10 million primarily due to spending in Colorado River DevCo. Fourth quarter 2018 capital is now expected to be between $131 million and $151 million, or $66 million to $76 million attributable to the Partnership.

Full year 2017 capital is anticipated to range between $385 million to $405 million, or $230 million to $240 million attributable to the Partnership, as compared to the prior full year 2017 capital guidance of $365 million to $405 million, or $215 million to $235 million attributable the Partnership.

                     
      Actuals             Guidance
      1Q     2Q     3Q             4Q           FY 2017

Gross Volumes

                                                           
Oil Gathered (MBbl/d)     44     54     71             82   -   90           63   -   65
Gas Gathered (MMcf/d)     112     122     146             165   -   180           137   -   140
Oil and Gas Gathered (MBoe/d)     63     74     95             110   -   120           86   -   88
Produced Water Gathered (MBw/d)     9     13     27             38   -   48           22   -   24
Fresh Water Delivered (MBw/d)     129     184     175             110   -   150           150   -   160
                                                             

Financials ($MM)

                                                           
Net Income     $35     $39     $44            

$43

  -   $47          

$160

  -   $164
Gross EBITDA1     $37     $42     $48             $48   -   $55           $175   -   $182
Net EBITDA1     $26     $34     $46             $45   -   $52           $151   -   $158
DCF1     $24     $30     $41             $39   -   $45           $134   -   $140
Distribution Coverage1     1.8x     1.9x     2.4x             2.2x   -   2.5x           2.1x   -   2.2x
                                                             
Gross Capital, Excluding Acquisitions     $76     $84     $94             $131   -   $151           $385   -   $405
Net Capital, Excluding Acquisitions     $59     $46     $59             $66   -   $76           $230   -   $240
                                                             

Further details with respect to the third quarter results and guidance can be found in the supplemental presentation on the Partnership's website, www.nblmidstream.com.

1 EBITDA and DCF are not Generally Accepted Accounting Principles ("GAAP") measures. Definitions and reconciliations of these non-GAAP measures to their most directly comparable GAAP reporting measures appear in Schedule 4 of the financial tables which follow.

2 Annualized Leverage Ratio defined as 3Q Debt / 3Q EBITDA * 4 ($200 million / $46 million * 4); EBITDA is a Non-GAAP measure, see Footnote 1

Conference Call

Noble Midstream will host a webcast and conference call tomorrow at 1:00 p.m. Central Time to discuss third quarter 2017 financial and operational results and updated 2017 guidance. The live audio webcast and related presentation material is accessible on the 'Investors' page of the Partnership's website at www.nblmidstream.com. Conference call numbers for participation are 877-883-0383, or 412-902-6506 for international calls. The passcode number is 9665376. A replay of the conference call will be available at the same web location following the event.

About Noble Midstream Partners

Noble Midstream Partners LP is a growth-oriented master limited partnership formed by Noble Energy, Inc. to own, operate, develop and acquire domestic midstream infrastructure assets. Noble Midstream currently provides crude oil, natural gas, and water-related midstream services in the DJ Basin in Colorado and the Delaware Basin in Texas. For more information, please visit www.nblmidstream.com.

Results included in this release reflect the results of our predecessor for accounting purposes for periods prior to the closing of our initial public offering (IPO) on September 20, 2016, as well as the results of the Partnership, for the period subsequent to the closing of the IPO.

This news release contains certain “forward-looking statements” within the meaning of federal securities law. Words such as “anticipates”, “believes”, “expects”, “intends”, “will”, “should”, “may”, “estimates”, and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect the Partnership’s current views about future events. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, Noble Energy’s ability to meet its drilling and development plans, changes in general economic conditions, competitive conditions in the Partnership’s industry, actions taken by third-party operators, gatherers, processors and transporters, the demand for crude oil and natural gas gathering and processing services, the Partnership’s ability to successfully implement its business plan, the Partnership’s ability to complete internal growth projects on time and on budget, the price and availability of debt and equity financing, the availability and price of crude oil and natural gas to the consumer compared to the price of alternative and competing fuels, and other risks inherent in the Partnership’s business, including those described under “Risk Factors” and “Forward-Looking Statements” in the Partnership's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and in other reports we file with the Securities and Exchange Commission. These reports are also available from the Partnership’s office or website, www.nblmidstream.com. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Noble Midstream does not assume any obligation to update forward-looking statements should circumstances, management’s estimates, or opinions change.

This news release also contains certain non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating Noble Midstream’s overall financial performance. Please see the attached schedules for reconciliations of the non-GAAP financial measures used in this news release to the most directly comparable GAAP financial measures.

This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b) that 100% of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.Nominees, and not the Partnership, are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

 
Schedule 1
Noble Midstream Partners LP
Revenue and Throughput Volume Statistics
(unaudited)
           
    Three Months Ended September 30,     Nine Months Ended September 30,
    2017   2016     2017   2016
Colorado River DevCo                  
Crude Oil Gathering Volumes (Bbl/d)   61,736     44,830       53,308     45,226
Natural Gas Gathering Volumes (MMBtu/d)   182,054     141,624       162,364     127,579
Produced Water Gathering Volumes (Bbl/d)   14,424     11,555       12,048     10,448
Fresh Water Delivery Volumes (Bbl/d)   80,395     113,466       89,372     60,316
Gathering and Fresh Water Delivery Revenues Affiliate (in thousands)   $ 45,501     $ 41,899       $ 126,442     $ 95,658
                   
San Juan River DevCo                  
Fresh Water Delivery Volumes (Bbl/d)   29,280     19,211       34,902     13,647
Fresh Water Delivery Revenues Affiliate (in thousands)   $ 8,366     $ 3,006       $ 28,829     $ 6,801
                   
Green River DevCo                  
Fresh Water Delivery Volumes (Bbl/d)       3,348           10,016
Fresh Water Delivery Revenues Affiliate (in thousands)   $     $ 625       $     $ 4,822
                   
Blanco River DevCo LP                  
Crude Oil Gathering Volumes (Bbl/d)   3,791           1,277    
Natural Gas Gathering Volumes (MMBtu/d)   7,926           2,671    
Produced Water Gathering Volumes (Bbl/d)   7,670           2,585    
Gathering Revenues Affiliate (in thousands)   $ 1,576     $       $ 1,576     $
                   
Laramie River DevCo LP                  
Crude Oil Gathering Volumes (Bbl/d)   5,353           1,804    
Produced Water Gathering Volumes (Bbl/d)   4,764           1,605    
Fresh Water Delivery Volumes (Bbl/d)   65,085           38,709    
Gathering and Fresh Water Delivery Revenues Third Party (in thousands)   $ 6,356     $       $ 10,022     $
                   
Total Gathering Systems                  
Crude Oil Gathering Volumes (Bbl/d)   70,880     44,830       56,389     45,226
Natural Gas Gathering Volumes (MMBtu/d)   189,980     141,624       165,035     127,579
Barrels of Oil Equivalent (Boe/d)   95,236     62,987       77,547     61,582
Produced Water Gathering Volumes (Bbl/d)   26,858     11,555       16,238     10,448
Gathering Revenues (in thousands)   $ 39,428     $ 24,250       $ 100,165     $ 67,313
                   
Total Fresh Water Delivery                  
Fresh Water Delivery Volumes (Bbl/d)   174,760     136,025       162,983     83,979
Fresh Water Delivery Revenues (in thousands)   $ 22,371     $ 21,280       $ 66,704     $ 39,968
                                 
Schedule 2
Noble Midstream Partners LP
Consolidated Statement of Operations
(in thousands, except per unit amounts, unaudited)
           
    Three Months Ended September 30,     Nine Months Ended September 30,
    2017   2016     2017   2016
Midstream Services Revenues                  
Crude Oil, Natural Gas and Produced Water Gathering Affiliate   $ 37,854     $ 24,250       $ 98,591     $ 67,313  
Crude Oil, Natural Gas and Produced Water Gathering Third Party   1,574           1,574      
Fresh Water Delivery Affiliate   17,589     21,280       58,256     39,968  
Fresh Water Delivery — Third Party   4,782           8,448      
Crude Oil Treating Affiliate   1,037     1,397       3,473     4,090  
Other Affiliate   275     240       866     888  
Total Midstream Services Revenues   63,111     47,167       171,208     112,259  
Costs and Expenses                  
Direct Operating   13,712     7,426       39,406     19,999  
Depreciation and Amortization   3,562     2,290       8,483     6,652  
General and Administrative   3,087     2,587       9,281     7,411  
Total Operating Expenses   20,361     12,303       57,170     34,062  
Operating Income   42,750     34,864       114,038     78,197  
Other (Income) Expense                  
Interest Expense, Net of Amount Capitalized   594     2,462       961     3,107  
Investment Income   (1,633 )   (1,070 )     (4,339 )   (3,509 )
Total Other (Income) Expense   (1,039 )   1,392       (3,378 )   (402 )
Income Before Income Taxes   43,789     33,472       117,416     78,599  
Income Tax Provision   33     11,105       33     28,288  
Net Income and Comprehensive Income   43,756     22,367       117,383     50,311  
Less: Net Income Prior to the IPO on September 20, 2016       18,046           45,990  
Net Income Subsequent to the IPO on September 20, 2016   43,756     4,321       117,383     4,321  
Less: Net Income Attributable to Noncontrolling Interests   2,086     1,228       19,779     1,228  
Net Income Attributable to Noble Midstream Partners LP   41,670     3,093       97,604     3,093  
Less: Net Income Attributable to Incentive Distribution Rights   223           315      
Net Income Attributable to Limited Partners   $ 41,447     $ 3,093       $ 97,289     $ 3,093  
                   
Net Income Attributable to Limited Partners Per Limited Partner Unit Basic and Diluted                  
Common Units   $ 1.15     $ 0.10       $ 2.93     $ 0.10  
Subordinated Units   $ 1.15     $ 0.10       $ 2.92     $ 0.10  
                   
Weighted Average Limited Partner Units Outstanding Basic                  
Common Units — Public   17,900     14,375       15,627     14,375  
Common Units — Noble Energy   2,090     1,528       1,727     1,528  
Subordinated Units — Noble Energy   15,903     15,903       15,903     15,903  
Total Limited Partner Units   35,893     31,806       33,257     31,806  
                   
Weighted Average Limited Partner Units Outstanding Diluted                  
Common Units — Public   17,915     14,375       15,638     14,375  
Common Units — Noble Energy   2,090     1,528       1,727     1,528  
Subordinated Units — Noble Energy   15,903     15,903       15,903     15,903  
Total Limited Partner Units   35,908     31,806       33,268     31,806  
                           
 
Schedule 3
Noble Midstream Partners LP
Consolidated Balance Sheet
(in thousands, unaudited)
         
  September 30,
2017
    December 31,
2016
ASSETS        
Current Assets        
Cash and Cash Equivalents $ 10,682       $ 57,421  
Accounts Receivable — Affiliate 22,608       19,191  
Accounts Receivable — Third Party 2,552        
Other Current Assets 490       380  
Total Current Assets 36,332       76,992  
Property, Plant and Equipment        
Total Property, Plant and Equipment, Gross 566,377       311,045  
Less: Accumulated Depreciation and Amortization (39,891 )     (31,642 )
Total Property, Plant and Equipment, Net 526,486       279,403  
Investments 79,748       11,151  
Deferred Charges 1,525       1,813  
Total Assets $ 644,091       $ 369,359  
LIABILITIES        
Current Liabilities        
Accounts Payable — Affiliate $ 2,386       $ 1,452  
Accounts Payable — Third Party 85,682       12,501  
Current Portion of Capital Lease 785       4,786  
Other Current Liabilities 1,700       1,617  
Total Current Liabilities 90,553       20,356  
Long-Term Liabilities        
Long-Term Debt 200,000        
Asset Retirement Obligations 7,215       5,415  
Long-Term Portion of Capital Lease 3,043        
Other Long-Term Liabilities 610       683  
Total Liabilities 301,421       26,454  
Commitments and Contingencies        
EQUITY        
Partners' Equity        
Limited Partner        
Common Units — Public (17,943 and 14,375 units outstanding, respectively) 476,426       311,872  
Common Units — Noble Energy (2,090 and 1,528 units outstanding, respectively) (22,727 )     (3,534 )
Subordinated Units — Noble Energy (15,903 units outstanding) (179,207 )     (36,799 )
General Partner 223        
Total Partner's Equity 274,715       271,539  
Noncontrolling Interests 67,955       71,366  
Total Equity 342,670       342,905  
Total Liabilities and Equity $ 644,091       $ 369,359  
                 

Schedule 4

Noble Midstream Partners LP

Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures

Non-GAAP Financial Measures

This news release, the financial tables and other supplemental information include EBITDA and Distributable Cash Flow, both of which are non-GAAP measures that may be used periodically by management when discussing our financial results with investors and analysts. The following presents a reconciliation of each of these non-GAAP financial measures to its nearest comparable GAAP measure.

We define EBITDA as net income before income taxes, net interest expense, depreciation and amortization. EBITDA is used as a supplemental financial measure by management and by external users of our financial statements, such as investors, industry analysts, lenders and ratings agencies to assess:

  • our operating performance as compared to those of other companies in the midstream energy industry, without regard to financing methods, historical cost basis or capital structure;
  • the ability of our assets to generate sufficient cash flow to make distributions to our partners;
  • our ability to incur and service debt and fund capital expenditures; and
  • the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

We define Distributable Cash Flow as EBITDA less estimated maintenance capital expenditures. Distributable Cash Flow is used by management to evaluate our overall performance. Our partnership agreement requires us to distribute all available cash on a quarterly basis, and Distributable Cash Flow is one of the factors used by the board of directors of our general partner to help determine the amount of cash that is available to our unitholders for a given period.

We believe that the presentation of EBITDA and Distributable Cash Flow provide information useful to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to EBITDA and Distributable Cash Flow are net income and net cash provided by operating activities. EBITDA and Distributable Cash Flow should not be considered alternatives to net income, net cash provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Distributable Cash Flow exclude some, but not all, items that affect net income or net cash, and these measures may vary from those of other companies. As a result, EBITDA and Distributable Cash Flow, as presented below, may not be comparable to similarly titled measures of other companies.

EBITDA and Distributable Cash Flow should not be considered as alternatives to GAAP measures, such as net income, operating income, cash flow from operating activities, or any other GAAP measure of financial performance.

   
Schedule 4 (Continued)
Noble Midstream Partners LP
Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures
   
Reconciliation of Net Income (GAAP) to EBITDA and Distributable Cash Flow (Non-GAAP)
(in thousands, unaudited)
       
    Three Months Ended September 30,
    2017     2016
Reconciliation from Net Income (GAAP)          
Net Income and Comprehensive Income (GAAP)   $ 43,756     $ 22,367
Add:          
Depreciation and Amortization   3,562     2,290
Interest Expense, Net of Amount Capitalized   594     2,462
Income Tax Provision   33     11,105
Unit-Based Compensation   248     $
EBITDA (Non-GAAP)   48,193     $ 38,224
Less:          
EBITDA Prior to the IPO on September 20, 2016       33,646
EBITDA Subsequent to the IPO on September 20, 2016   48,193     4,578
Less:          
EBITDA Attributable to Noncontrolling Interests   2,188     1,293
EBITDA Attributable to Noble Midstream Partners LP (Non-GAAP)   46,005     3,285
Less:          
Cash Interest Paid   1,351    
Maintenance Capital Expenditures   3,952     205
Distributable Cash Flow of Noble Midstream Partners LP (Non-GAAP)   $ 40,702     $ 3,080
Distributions (Declared)   $ 16,967     N/A
Distribution Coverage Ratio (Declared)   2.4x     N/A
           
     
Schedule 4 (Continued)
Noble Midstream Partners LP
Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures
     
Reconciliation of Net Cash Provided by Operating Activities (GAAP) to EBITDA
and Distributable Cash Flow (Non-GAAP)
(in thousands, unaudited)
       
  Three Months Ended September 30,
  2017     2016
Reconciliation from Net Cash Provided by Operating Activities (GAAP)          
Net Cash Provided by Operating Activities (GAAP) $ 49,830     $ 33,564  
Add:          
Interest Expense, Net of Amount Capitalized 594     2,462  
Changes in Operating Assets and Liabilities (2,583 )   11,617  
Change in Income Tax Payable 33     (9,367 )
Stock Based Compensation and Other 319     (52 )
EBITDA (Non-GAAP) 48,193     $ 38,224  
Less:          
EBITDA Prior to the IPO on September 20, 2016     33,646  
EBITDA Subsequent to the IPO on September 20, 2016 48,193     4,578  
Less:          
EBITDA Attributable to Noncontrolling Interests 2,188     1,293  
EBITDA Attributable to Noble Midstream Partners LP (Non-GAAP) 46,005     3,285  
Less:          
Cash Interest Paid 1,351      
Maintenance Capital Expenditures 3,952     205  
Distributable Cash Flow of Noble Midstream Partners LP (Non-GAAP) $ 40,702     $ 3,080  
Distributions (Declared) $ 16,967     N/A  
Distribution Coverage Ratio (Declared) 2.4x     N/A  
           
       

Schedule 4 (Continued)

Noble Midstream Partners LP

Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures

 

 

Reconciliation of 2017 GAAP Guidance to 2017 Non-GAAP Guidance

(in millions, unaudited)

       
      2017 Guidance
      4Q         Full Year
Reconciliation from Net Income (GAAP)                
Net Income and Comprehensive Income (GAAP)    

$43 - $47

       

$160 - $164

Add: Depreciation and Amortization     4 - 6         12 - 14
Add: Interest Expense, Net of Amount Capitalized    

1 - 2

       

2 - 3

Add: Income Tax Provision     0        

0

Add: Unit-Based Compensation     0         1
EBITDA (Non-GAAP)     $48 - $55         $175 - $182
Less: EBITDA Attributable to Noncontrolling Interests    

3

       

24

EBITDA Attributable to Noble Midstream Partners LP (Non-GAAP)     $45 - $52         $151 - $158
Less: Maintenance Capital Expenditures and Cash Interest     6 - 7         17 - 18
Distributable Cash Flow of Noble Midstream Partners LP (Non-GAAP)     $39 - $45         $134 - $140
Distribution Coverage Ratio     2.2x - 2.5x         2.1x - 2.2x

 

Noble Midstream
Chris Hickman
VP, Investor Relations
(281) 943-1622
chris.hickman@nblmidstream.com

 

Source: Noble Midstream

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