INERGY, L.P. 
By HOUSTON, Aug. 6, 2013 /PRNewswire/ -- Crestwood Midstream Partners LP (NYSE: CMLP) ("Crestwood" or "CMLP") reported today its unaudited financial results for the three months ended June 30, 2013. Key financial and operating results included the following:
Second Quarter 2013 Highlights
-- Adjusted earnings before interest, taxes, depreciation, amortization and
accretion ("Adjusted EBITDA") was $38.9 million, 21% higher than second
quarter 2012;
-- Adjusted distributable cash flow was $27.6 million, 16% higher than
second quarter 2012;
-- Total gathering volumes averaged 993 million cubic feet per day
("MMcf/d"), 21% higher than second quarter 2012, with 65% of gathering
volumes from rich gas areas; and
-- On May 6, 2013, we announced a series of definitive agreements whereby
the owner of our general partner, Crestwood Holdings LLC ("Crestwood
Holdings"), would acquire the general partner interest and approximately
29% of the outstanding limited partnership interest of Inergy, L.P.
("NRGY"), contribute its ownership of Crestwood's general partner to
NRGY, and Crestwood would merge into Inergy Midstream, L.P. ("Inergy
Midstream"). Crestwood Holdings completed the acquisition of its
interest in NRGY and contribution of Crestwood's general partner in June
2013. The merger of CMLP into Inergy Midstream is currently expected to
be finalized late third quarter or early fourth quarter 2013.
Collectively, NRGY and Inergy Midstream are referred to herein as
"Inergy."
"We are pleased to report another quarter of solid performance," stated Robert G. Phillips, Chairman, President and Chief Executive Officer of Crestwood's general partner. "As expected, our Marcellus assets continued to drive the increase in our gathering volumes and offset natural production declines in the Barnett segment. We continue to focus our growth capital spending on pipeline expansions and compression additions in the Marcellus region to keep up with Antero Resources' aggressive development program in the area.
"We expect that Adjusted EBITDA and distributable cash flow will increase in the second half of 2013 due primarily to Marcellus growth. Our significant expansion projects are expected to commence service in the next several weeks which should boost volumes.
"In addition, we are pleased with the significant progress we have made to complete the transformational merger between Crestwood and Inergy Midstream. The combined partnership will have a diverse platform of midstream assets in virtually every premier shale play in the United States and will provide a full suite of services expanding across the midstream value chain. Now that NRGY owns the general partner of Crestwood, we are focused on an efficient integration of our assets and organizations to position our diverse midstream operating platform to provide 'best-in-class' customer service and leverage the capabilities of the combined organization. With the larger size and scale of the combined partnerships, we will be better positioned to provide a more comprehensive and competitive suite of customer services that expand margins and enhance returns. We have an excellent foothold in all of the premier shale plays and continue to execute on new opportunities.
"We are excited about our new investment in the Powder River Basin Niobrara rich gas and crude oil focused shale play. As announced last month, Crestwood completed its acquisition of a 50% interest in the Jackalope system. The $108 million transaction is supported by a 20-year gathering and processing agreement and a 311,000 acre area of dedication from Chesapeake Energy Corporation and RKI Exploration & Production. The Jackalope transaction highlights the benefits of the merger with Inergy Midstream as the Niobrara play provides additional opportunities to extend value chain services such as crude oil storage, blending, truck and rail terminalling, transportation and marketing services that Inergy specializes in," added Phillips.
Second Quarter 2013 Financial and Operating Results
Our Adjusted EBITDA for the second quarter 2013 was $38.9 million, $6.9 million higher than the second quarter 2012. Second quarter 2013 results included $12.9 million of EBITDA from our Marcellus segment, $26.6 million from our Barnett segment and $5.0 million from our other segments.
Second Quarter 2013 Segment Performance
Marcellus Segment
Marcellus segment revenues more than doubled to $15.4 million in the second quarter 2013, compared to $7.0 million in the second quarter 2012. Gathering volumes increased 61% to 415 MMcf/d in the second quarter 2013, compared to 257 MMcf/d in the second quarter 2012. Compression revenues attributable to the compression assets acquired from Enerven Compression LLC in December 2012 were $3.9 million in the second quarter 2013. Operating and maintenance expenses totaled $2.5 million during the second quarter 2013, an increase of approximately $2.0 million from the second quarter 2012, reflecting higher costs associated with the acquired assets and increased volumes.
Barnett Segment
Barnett segment revenues increased 5% to $33.1 million in the second quarter 2013, compared to $31.5 million in the second quarter 2012. Gathering volumes increased 9% to 438 MMcf/d in the second quarter 2013, compared to 401 MMcf/d in the second quarter 2012. Processing volumes increased 53% to 197 MMcf/d in the second quarter 2013, compared with 129 MMcf/d in the second quarter 2012. The increase in gathering and processing volumes was driven by the West Johnson County assets acquired from Devon Energy Corporation in August 2012, which contributed approximately $6.6 million of revenue in the second quarter 2013. The increase was partially offset by natural production declines on existing wells as Quicksilver Resources has not connected any additional wells during 2013.
Operating and maintenance expenses totaled $6.3 million during the second quarter 2013, an increase of $1.0 million from the second quarter 2012, due primarily to the operation of the West Johnson County assets.
Other Segments
The EBITDA contribution from our Fayetteville, Granite Wash and Other segments totaled approximately $5.0 million for the second quarter 2013, a decline of 12% from $5.7 million in the second quarter 2012. The decrease in EBITDA was primarily attributable to the expiration of a minimum throughout agreement on the Haynesville gathering system.
General and Administrative Expenses
General and administrative expenses totaled $10.4 million in the second quarter 2013, $1.7 million higher than the second quarter 2012. During the second quarter 2013, $4.8 million of our general and administrative expense related to transaction and due diligence activities, compared to $2.3 million in the second quarter 2012. The increase in transaction related expenses was primarily due to our anticipated merger with Inergy Midstream.
Capital Investment and Resources
At June 30, 2013, Crestwood had approximately $777.6 million of debt outstanding, comprised of $350.0 million of 7.75% fixed-rate senior notes due 2019, $300.2 million under the CMLP revolving credit facility and $127.4 million under the Crestwood Marcellus Midstream LLC ("CMM") revolving credit facility, which is used to fund our Marcellus capital projects. The CMLP and CMM credit facilities have total committed capacity of $550 million and $200 million, respectively.
Crestwood's capital spending for the six months ended June 30, 2013, totaled approximately $80.3 million. The majority of capital spending related to construction of pipeline laterals and compression equipment in the Marcellus segment.
Basis of Presentation and Non-GAAP Financial Measures
Pursuant to U.S. generally accepted accounting principles ("GAAP"), the acquisition of CMM in January 2013 was accounted for as a reorganization of entities under common control. As such, the historic operations of CMM were retroactively adjusted to reflect Crestwood's results as if Crestwood owned 100% of CMM since CMM's formation and commencement of operations at the end of March 2012. Full year 2012 results were recast in a Form 8-K filed with the Securities and Exchange Commission on May 10, 2013. Information related to 2012 reflected in this news release reflects the recast nature of these amounts.
Adjusted EBITDA and adjusted distributable cash flow are non-GAAP financial measures. The accompanying schedules of this news release provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Our non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income or operating income or any other GAAP measure of liquidity or financial performance.
Conference Call
Crestwood will host a conference call and internet webcast for investors and analysts today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss the second quarter 2013 performance. The call will be jointly hosted with Inergy. To participate by phone, dial 1-480-629-9723, and ask for the Crestwood/Inergy call. A replay of the call will be available for one week by dialing 1-303-590-3030 and using access code 4631393. A webcast of the conference call will also be available live and by replay and can be accessed via the "Presentations" page of Crestwood's Investor Relations website at www.crestwoodlp.com.
Additional Information and Where to Find It
This communication contains information about the proposed merger transaction involving Crestwood and Inergy Midstream. In connection with the proposed merger transaction, Inergy Midstream has filed with the SEC a preliminary registration statement on Form S-4 that includes a proxy statement/prospectus for the unitholders of Crestwood. Crestwood will mail the final proxy statement/prospectus to its unitholders. INVESTORS AND UNITHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT CRESTWOOD, INERGY MIDSTREAM, THE PROPOSED MERGER TRANSACTION AND RELATED MATTERS. Investors and unitholders are able to obtain free copies of the proxy statement/prospectus and other documents filed with the SEC by Inergy Midstream and Crestwood through the website maintained by the SEC at www.sec.gov. In addition, investors and unitholders are able to obtain free copies of documents filed by Crestwood with the SEC from Crestwood's website, www.crestwoodlp.com, under the heading "SEC Filings" in the "Investor Relations" tab and free copies of documents filed by Inergy Midstream with the SEC from Inergy Midstream's website, www.inergylp.com/midstream, under the heading "SEC Filings" in the "Investor Relations" tab.
Participants in the Solicitation
Crestwood, Inergy Midtream and Inergy and their respective general partners' directors and executive officers may be deemed to be participants in the solicitation of proxies from the unitholders of Crestwood in respect of the proposed merger transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the unitholders of Crestwood in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement/prospectus when it is filed with the SEC. Information regarding Crestwood's directors and executive officers is contained in Crestwood's Annual Report on Form 10-K for the year ended December 31, 2012, which is filed with the SEC. Information regarding Inergy's directors and executive officers is contained in Inergy's Annual Report on Form 10-K for the year ended September 30, 2012, which is filed with the SEC. Free copies of these documents may be obtained from the sources described above.
Forward-Looking Statements
The statements in this news release regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements. Although these statements reflect the current views, assumptions and expectations of Crestwood and Inergy management, the matters addressed herein are subject to numerous risks and uncertainties which could cause actual activities, performance, outcomes and results to differ materially from those indicated. Such forward-looking statements include, but are not limited to, statements about the future financial and operating results, objectives, expectations and intentions and other statements that are not historical facts. Factors that could result in such differences or otherwise materially affect Crestwood's or Inergy's financial condition, results of operations and cash flows include , without limitation, failure to satisfy closing conditions with respect to the merger; the risks that the Crestwood and Inergy businesses will not be integrated successfully or may take longer than anticipated; the possibility that expected synergies will not be realized, or will not be realized within the expected timeframe; fluctuations in oil, natural gas and NGL prices; the extent and success of drilling efforts, as well as the extent and quality of natural gas volumes produced within proximity of Crestwood or Inergy assets; failure or delays by customers in achieving expected production in their natural gas projects; competitive conditions in the industry and their impact on the ability of Crestwood or Inergy to connect natural gas supplies to Crestwood or Inergy gathering and processing assets or systems; actions or inactions taken or non-performance by third parties, including suppliers, contractors, operators, processors, transporters and customers; the ability of Crestwood or Inergy to consummate acquisitions, successfully integrate the acquired businesses, realize any cost savings and other synergies from any acquisition; changes in the availability and cost of capital; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond Crestwood or Inergy's control; timely receipt of necessary government approvals and permits, the ability of Crestwood or Inergy to control the costs of construction, including costs of materials, labor and right-of-way and other factors that may impact either company's ability to complete projects within budget and on schedule; the effects of existing and future laws and governmental regulations, including environmental and climate change requirements; the effects of existing and future litigation; and risks related to the substantial indebtedness, of either company, as well as other factors disclosed in Crestwood and Inergy's filings with the U.S. Securities and Exchange Commission. You should read filings made by Crestwood and Inergy with the U.S. Securities and Exchange Commission, including Annual Reports on Form 10-K for the year ended December 31, 2012 and September 30, 2012, respectively, and the most recent Quarterly Reports and Current Reports for a more extensive list of factors that could affect results. Crestwood and Inergy do not assume any obligation to update these forward-looking statements.
About Crestwood Midstream Partners LP
Houston, Texas-based Crestwood is a growth-oriented, midstream master limited partnership that owns and operates predominately fee-based gathering, processing, treating and compression assets servicing natural gas producers in the Barnett Shale in north Texas, the Marcellus Shale in northern West Virginia, the Fayetteville Shale in northwest Arkansas, the Granite Wash in the Texas Panhandle, the Avalon Shale/Bone Spring in southeastern New Mexico and the Haynesville/Bossier Shale in western Louisiana. For more information about Crestwood, visit www.crestwoodlp.com. The general partner of Crestwood is owned by Inergy, L.P. (NYSE: NRGY).
About Inergy, L.P.
Inergy, L.P. is a publicly traded master limited partnership that controls, owns, and operates energy midstream businesses. Inergy's operations include a natural gas storage business in Texas and an NGL and crude oil supply and logistics business that serves customers in the United States and Canada. Through its general partner interest in Inergy Midstream, L.P. and Crestwood Midstream Partners LP, Inergy is also engaged in the development and operation of natural gas, NGL and crude oil gathering, processing, storage, and transportation assets in multiple unconventional shale plays across the United States. For more information about Inergy, L.P., visit www.inergylp.com.
About Inergy Midstream, L.P.
Inergy Midstream, L.P. is a publicly traded master limited partnership that develops, owns, and operates predominantly fee-based natural gas, NGL and crude oil storage and transportation businesses in the Northeast region of the United States and in North Dakota.
Investor Contact:
Mark Stockard
832-519-2207
mstockard@crestwoodlp.com
CRESTWOOD MIDSTREAM PARTNERS LP
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per unit data)
(Unaudited)
Three Months
Ended Six Months Ended Three Months Ended
June 30, June 30, March 31,
-------- -------- ---------
2013 2012(1) 2013 2012(1) 2013
---- ------ ---- ------ ----
Operating
revenues
Gathering
revenues $24,103 $17,761 $48,099 $29,598 $23,996
Gathering
revenues -
related party 19,066 21,616 38,973 45,462 19,907
Processing
revenues 3,926 1,198 7,974 2,394 4,048
Processing
revenues -
related party 5,515 6,550 11,197 13,321 5,682
Compression
revenues 3,873 - 7,799 - 3,926
Product sales 14,616 8,104 29,473 18,187 14,857
Total
operating
revenues 71,099 55,229 143,515 108,962 72,416
------ ------ ------- ------- ------
Operating
expenses
Product
purchases 6,154 7,441 12,902 16,414 6,748
Product
purchases -
related party 7,878 - 14,635 - 6,757
Operations and
maintenance 12,592 9,400 25,608 19,111 13,016
General and
administrative 10,380 8,657 18,169 15,395 7,789
Depreciation,
amortization
and accretion 17,701 13,695 35,061 24,341 17,360
Total
operating
expenses 54,705 39,193 106,375 75,261 51,670
------ ------ ------- ------ ------
Operating
income 16,394 16,036 37,140 33,701 20,746
Interest and
debt expense (11,185) (8,963) (22,635) (16,520) (11,450)
------- ------ ------- -------
Income before
income taxes 5,209 7,073 14,505 17,181 9,296
Income tax
expense 339 275 677 578 338
--- --- --- --- ---
Net income $4,870 $6,798 $13,828 $16,603 $8,958
====== ====== ======= ======= ======
General
partner's
interest in
net income $5,192 $4,154 $10,393 $7,522 $5,201
Limited
partners'
interest in
net income $(322) $2,644 $3,435 $9,081 $3,757
Basic earnings
(loss) per
unit:
Net income
(loss) per
limited
partner unit $(0.01) $0.06 $0.06 $0.21 $0.07
Diluted
earnings
(loss) per
unit:
Net income
(loss) per
limited
partner unit $(0.01) $0.06 $0.06 $0.21 $0.07
Weighted-
average
number of
limited
partner
units:
Basic 60,004 43,333 57,400 43,014 54,766
Diluted 60,004 43,534 57,673 43,204 55,042
Distributions
declared per
limited
partner unit
(attributable
to the period
ended) $0.51 $0.50 $1.02 $1.00 $0.51
(1) Financial
information has been
revised to include
the results of
Crestwood Marcellus
Midstream LLC.
CRESTWOOD MIDSTREAM PARTNERS LP
CONSOLIDATED BALANCE SHEETS
(In thousands, except for unit data)
(Unaudited)
June 30, December 31,
2013 2012
---- ----
ASSETS
Current assets
Cash and cash
equivalents $110 $111
Accounts
receivable 21,772 21,636
Accounts
receivable -
related party 20,851 23,755
Insurance
receivable 3,496 2,920
Prepaid
expenses and
other 1,476 1,941
Assets held
for sale 6,680 -
Total current assets 54,385 50,363
Property, plant and equipment, net of
accumulated depreciation of 1,016,770 939,846
$153,421 in 2013 and $130,030 in 2012
Intangible assets, net of accumulated
amortization of 490,503 501,380
$23,821 in 2013 and $12,814 in 2012
Goodwill 95,031 95,031
Deferred financing costs, net 21,134 22,528
Other assets 2,107 1,321
----- -----
Total assets $1,679,930 $1,610,469
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities
Accrued
additions to
property,
plant and
equipment $36,173 $9,213
Capital leases 3,408 3,862
Deferred
revenue 2,426 2,634
Accounts
payable -
related party 2,997 3,088
Accounts
payable,
accrued
expenses and
other
liabilities 34,056 29,717
------
Total current liabilities 79,060 48,514
Long-term debt 778,944 685,161
Long-term capital leases 1,509 3,161
Asset retirement obligations 14,425 14,024
Partners' capital
Common
unitholders
(53,766,588
and
41,164,737
units issued
and
outstanding at
June 30, 2013
and December
31, 2012) 676,214 442,348
Class C
unitholders
(7,165,819
units issued
and
outstanding at
December 31,
2012) - 159,908
Class D
unitholder
(6,341,707
units issued
and
outstanding at
June 30,
2013) 126,644 -
General
partner
(1,112,674
and 979,614
units issued
and
outstanding at
June 30, 2013
and December
31, 2012) 3,134 257,353
Total partners' capital 805,992 859,609
Total liabilities and
partners' capital $1,679,930 $1,610,469
========== ==========
CRESTWOOD MIDSTREAM PARTNERS LP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
-----------------
2013 2012(1)
---- ------
Cash flows from operating activities
Net income $13,828 $16,603
Adjustments to reconcile net income to
net cash provided by
operating activities:
Depreciation,
amortization and
accretion 35,061 24,341
Equity-based
compensation 1,378 994
Other non-cash
income items 2,067 2,546
Changes in assets and liabilities:
Accounts
receivable (136) 245
Accounts
receivable -
related party 2,904 4,010
Insurance
receivable (576) -
Prepaid expenses
and other assets (321) (560)
Accounts payable
-related party (91) (1,046)
Accounts payable,
accrued expenses
and other
liabilities 3,415 (4,919)
Net cash provided
by operating
activities 57,529 42,214
------ ------
Cash flows from investing activities
Capital
expenditures (80,297) (22,373)
Acquisitions, net
of cash acquired - (376,805)
Other 20 -
Net cash used in
investing
activities (80,277) (399,178)
------- --------
Cash flows from financing activities
Proceeds from
credit
facilities 316,900 244,700
Repayments of
credit
facilities (223,000) (176,250)
Payments on
capital leases (2,248) (1,375)
Deferred
financing costs
paid (82) (6,486)
Proceeds from
issuance of
common units,
net 118,562 103,034
Contributions
from partners - 247,163
Distribution to
General Partner
for additional
interest in CMM (129,000) -
Distributions to
partners (57,709) (45,471)
Taxes paid for
equity-based
compensation
vesting (676) (402)
Net cash provided
by financing
activities 22,747 364,913
------ -------
Change in cash
and cash
equivalents (1) 7,949
Cash and cash
equivalents at
beginning of
period 111 797
Cash and cash
equivalents at
end of period $110 $8,746
==== ======
Supplemental cash flow information:
Interest paid,
net of amounts
capitalized $20,270 $14,903
(1) Financial
information has been
revised to include
the results of
Crestwood Marcellus
Midstream LLC.
CRESTWOOD MIDSTREAM PARTNERS LP
OPERATING STATISTICS
(In thousands)
(Unaudited)
Three Months Six Months
Ended Ended Three Months Ended
June 30, June 30, March 31,
-------- -------- ---------
2013 2012(1) 2013 2012(1) 2013
---- ------ ---- ------ ----
Marcellus:
Gathering
revenues $11,524 $7,027 $21,872 $7,027 $10,348
Compression
revenues 3,873 - 7,799 - 3,926
----- --- ----- --- -----
Total
operating
revenues $15,397 $7,027 $29,671 $7,027 $14,274
Product
purchases - - - - -
Operations and
maintenance
expense 2,545 513 4,942 513 2,397
----- --- ----- --- -----
EBITDA $12,852 $6,514 $24,729 $6,514 $11,877
======= ====== ======= ====== =======
Gathering
volumes (in
MMcf) 37,765 23,424 71,674 23,424 33,909
Compression
volumes (in
MMcf) 25,882 - 50,157 - 24,275
Barnett:
Gathering
revenues $23,568 $23,771 $47,910 $49,830 $24,342
Processing
revenues 9,440 7,732 19,168 15,616 9,728
Product sales 64 - 544 - 480
--- --- --- ---
Total
operating
revenues $33,072 $31,503 $67,622 $65,446 $34,550
Product
purchases 146 - 401 - 255
Operations and
maintenance
expense 6,312 5,345 13,567 11,475 7,255
----- ----- ------ ------ -----
EBITDA $26,614 $26,158 $53,654 $53,971 $27,040
======= ======= ======= ======= =======
Gathering
volumes (in
MMcf) 39,833 36,529 80,206 77,182 40,373
Processing
volumes (in
MMcf) 17,913 11,765 36,235 23,822 18,322
Fayetteville:
Gathering
revenues $6,140 $6,228 $13,099 $12,994 $6,959
Product sales 191 102 485 200 294
--- --- --- ---
Total
operating
revenues $6,331 $6,330 $13,584 $13,194 $7,253
Product
purchases 190 124 483 206 293
Operations and
maintenance
expense 2,310 2,231 4,444 4,544 2,134
----- ----- ----- -----
EBITDA $3,831 $3,975 $8,657 $8,444 $4,826
====== ====== ====== ====== ======
Gathering
volumes (in
MMcf) 7,696 7,112 15,141 14,647 7,445
Granite Wash:
Gathering
revenues $478 $270 $992 $409 $514
Processing
revenues 1 16 3 99 2
Product sales 13,157 7,436 26,490 16,811 13,333
------ ----- ------ ------
Total
operating
revenues $13,636 $7,722 $27,485 $17,319 $13,849
Product
purchases 12,492 6,732 24,699 15,033 12,207
Operations and
maintenance
expense 685 541 1,293 1,059 608
--- --- ----- -----
EBITDA $459 $449 $1,493 $1,227 $1,034
==== ==== ====== ====== ======
Gathering
volumes (in
MMcf) 1,870 1,367 3,905 2,720 2,035
Processing
volumes (in
MMcf) 1,864 1,362 3,709 2,707 1,845
Other:
Gathering
revenues $1,459 $2,081 $3,199 $4,800 $1,740
Product sales 1,204 566 1,954 1,176 750
----- --- ----- -----
Total
operating
revenues $2,663 $2,647 $5,153 $5,976 $2,490
Product
purchases 1,204 585 1,954 1,175 750
Operations and
maintenance
expense 740 770 1,362 1,520 622
--- --- ----- -----
EBITDA $719 $1,292 $1,837 $3,281 $1,118
==== ====== ====== ====== ======
Gathering
volumes (in
MMcf) 3,176 6,044 7,115 12,107 3,939
(1) Financial
information has been
revised to include
the results of
Crestwood Marcellus
Midstream LLC.
CRESTWOOD MIDSTREAM PARTNERS LP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except for per unit data)
(Unaudited)
Three Months Ended Six Months Ended Three Months Ended
June 30, June 30, March 31,
-------- -------- ---------
2013 2012(1) 2013 2012(1) 2013
---- ------ ---- ------ ----
Net income $4,870 $6,798 $13,828 $16,603 $8,958
Items
impacting
net income:
Significant
transaction-
related
expenses 4,799 2,295 5,517 2,346 718
Non-cash
interest
expense
(write-off
of deferred
financing
costs) - - - 370 -
Adjusted net
income $9,669 $9,093 $19,345 $19,319 $9,676
====== ====== ======= ======= ======
Net income
(loss) per
limited
partner
unit
(diluted
basis) $(0.01) $0.06 $0.06 $0.21 $0.07
Items
impacting
net income $0.08 $0.05 $0.10 $0.06 0.01
Adjusted net
income per
limited
partner
unit
(diluted
basis) $0.07 $0.11 $0.16 $0.27 $0.08
===== ===== ===== ===== =====
Three Months Ended Six Months Ended Three Months Ended
June 30, June 30, March 31,
-------- -------- ---------
2013 2012(1) 2013 2012(1) 2013
---- ------ ---- ------ ----
Net income $4,870 $6,798 $13,828 $16,603 $8,958
Depreciation,
amortization
and
accretion
expense 17,701 13,695 35,061 24,341 17,360
Income tax
expense 339 275 677 578 338
Amortization
of deferred
financing
fees 1,125 1,339 2,253 2,641 1,128
Amortization
of debt
premium (59) - (117) - (58)
Non-cash
equity
compensation 781 500 1,378 994 597
Maintenance
capital
expenditures (2,002) (1,079) (2,923) (1,593) (921)
------ ------ ------ ------
Distributable
cash flow 22,755 21,528 50,157 43,564 27,402
Add:
Significant
transaction-
related
expenses 4,799 2,295 5,688 2,346 889
Adjusted
distributable
cash flow $27,554 $23,823 $55,845 $45,910 $28,291
======= ======= ======= ======= =======
Three Months Ended Six Months Ended Three Months Ended
June 30, June 30, March 31,
-------- -------- ---------
2013 2012(1) 2013 2012(1) 2013
---- ------ ---- ------ ----
Total
operating
revenues $71,099 $55,229 $143,515 $108,962 $72,416
Product
purchases 14,032 7,441 27,537 16,414 13,505
Operations
and
maintenance
expense 12,592 9,400 25,608 19,111 13,016
General and
administrative
expense 10,380 8,657 18,169 15,395 7,789
EBITDA 34,095 29,731 72,201 58,042 38,106
Items
impacting
EBITDA:
Add:
Significant
transaction-
related
expenses 4,799 2,295 5,517 2,346 718
Adjusted
EBITDA 38,894 32,026 77,718 60,388 38,824
Less:
Interest and
debt
expense 11,185 8,963 22,635 16,520 11,450
Income tax
expense 339 275 677 578 338
Depreciation,
amortization
and
accretion
expense 17,701 13,695 35,061 24,341 17,360
Items
impacting
EBITDA 4,799 2,295 5,517 2,346 718
----- ----- ----- ----- ---
Net income $4,870 $6,798 $13,828 $16,603 $8,958
====== ====== ======= ======= ======
(1) Financial
information has been
revised to include
the results of
Crestwood Marcellus
Midstream LLC.
SOURCE Crestwood Midstream Partners LP; Inergy, L.P.
