RADNOR, Pa., Feb. 13, 2014 /PRNewswire/ -- PVR Partners,
L.P. (NYSE: PVR) ("PVR") today reported financial and operational
results for the three months and the full year ended December 31, 2013.
(Logo:
http://photos.prnewswire.com/prnh/20110224/PH54022LOGO)
Full Year 2013 Results
Full year 2013 highlights and results, with comparisons to full
year 2012 results, included the following:
- Adjusted EBITDA of $314.5 million
as compared to $239.0 million.
- Distributable cash flow ("DCF") of $199.5 million as compared to $146.0 million.
- Average daily natural gas throughput volumes of 1.8 billion
cubic feet per day ("Bcfd") as compared to 1.0 Bcfd.
- Coal royalty tons of 25.1 million as compared to 30.2
million.
Adjusted EBITDA and distributable cash flow are not Generally
Accepted Accounting Principles ("GAAP") measures. Definitions
and reconciliations of these non-GAAP measures to GAAP reporting
measures appear in the financial tables which follow.
Fourth Quarter Results
Fourth quarter 2013 highlights and results, with comparisons to
fourth quarter 2012 results ("last year") and the third quarter of
2013 ("last quarter"), included the following:
- Adjusted EBITDA of $82.4 million
as compared to $67.8 million last
year and $79.9 million last
quarter.
- DCF of $51.1 million as compared
to $40.7 million last year and
$49.5 million last quarter.
- Average daily natural gas throughput volumes of 2.0 Bcfd as
compared to 1.4 Bcfd last year and 1.8 Bcfd last quarter.
- Coal royalty tons of 6.1 million as compared to 6.6 million
last year and 5.7 million last quarter.
Quarterly Distribution
As previously announced, the Board of Directors of PVR GP, LLC,
the general partner of PVR, declared a quarterly distribution of
$0.55 per unit payable in cash on
February 13, 2014 to common
unitholders of record at the close of business on February 7, 2014.
Management Comment
"PVR's fourth quarter financial and operating results were in
line with our expectations," said Bill
Shea, President and CEO of PVR's general partner.
"Adjusted EBITDA for the quarter increased by 21.5% from the fourth
quarter of 2012, with the gain driven by new business and
additional well connections in our Eastern Midstream segment."
Eastern Midstream Segment
The Eastern Midstream Segment reported fourth quarter 2013
results, with comparisons to fourth quarter 2012 results and the
third quarter of 2013, as follows:
- Adjusted EBITDA of $49.9 million
as compared to $33.1 million last
year and $43.5 million last
quarter.
- Quarterly average throughput volumes of 1.6 Bcfd, as compared
to 1.0 Bcfd last year and 1.4 Bcfd last quarter. The volume
increase reflected the continuing growth of business on PVR's
gathering and trunkline systems and completion of internal growth
projects.
Midcontinent Midstream Segment
The Midcontinent Midstream Segment reported fourth quarter 2013
results, with comparisons to fourth quarter 2012 results and the
third quarter of 2013, as follows:
- Adjusted EBITDA of $14.7 million
as compared to $14.2 million last
year and $17.1 million last
quarter.
- Quarterly average throughput volumes of 361 million cubic feet
per day ("MMcfd"), as compared to 421 MMcfd last year and 381 MMcfd
last quarter. Throughput volumes in the fourth quarter of
2013 were negatively impacted primarily by weather conditions.
Coal and Natural Resource Management Segment
The Coal and Natural Resource Management Segment reported fourth
quarter 2013 results, with comparisons to fourth quarter 2012
results and third quarter 2013 results, as follows:
- Adjusted EBITDA of $17.8 million
as compared to $20.5 million last
year and $19.3 million last
quarter. The variances were due to both volume and realized
prices received.
- Coal royalty tons of 6.1 million tons, as compared to 6.6
million tons last year and 5.7 million tons last quarter.
- Coal royalties revenue of $21.1
million, or $3.45 per ton, as
compared to $23.0 million, or
$3.47 per ton last year and
$20.8 million or $3.66 per ton last quarter.
Capital Investment and Resources
We invested $60.5 million on
internal growth projects in our midstream businesses during the
fourth quarter of 2013, of which $51.2
million was invested in the Eastern Midstream Segment.
Full year 2013 internal growth project investment totaled
$338.4 million, including
$286.2 million in the Eastern
Midstream Segment.
In September and October of 2013, we issued a total of 6.1
million common units, including the over allotment exercise by the
underwriter, representing limited partner interests in PVR in a
registered public offering. Total net proceeds were approximately
$138.0 million, after deducting
estimated fees and expenses and underwriting discounts and
commissions. In December 2013,
we redeemed $127.4 million of our
8.375% Senior Notes. As a result of this redemption, we
incurred a charge of $13.7 million
related to the call premium and the write-off of unamortized debt
issuance costs.
As of December 31, 2013, we had
borrowings of $562.5 million under
our $1.0 billion revolving credit
facility.
Fourth Quarter / Full Year 2013 Financial and Operational
Results Conference Call
A conference call and webcast, during which management will
discuss full year and fourth quarter 2013 financial and operational
results, is scheduled for Thursday, February
13, 2014 at 11:00 a.m. Eastern
Time. Prepared remarks by members of company
management will be followed by a question and answer period.
Interested parties may listen via webcast at
http://www.videonewswire.com/event.asp?id=98002 or by logging on
using the link posted on our website, www.pvrpartners.com.
Participants who would like to ask questions may join the
conference via phone by dialing 800-860-2442 (international:
412-858-4600) five to ten minutes before the scheduled start of the
conference call (reference the PVR Partners' call). An
on-demand replay of the webcast will be available on our website
shortly after the conclusion of the call. A telephonic replay
of the call will be available through February 20 by dialing 877-344-7529
(international: 412-317-0088) and using conference playback number
10040867.
******
PVR Partners, L.P. (NYSE: PVR) is a publicly traded limited
partnership which owns and operates a network of natural gas
midstream pipelines and processing plants, and owns and manages
coal and natural resource properties. Our midstream assets,
located principally in Texas,
Oklahoma and Pennsylvania, provide gathering,
transportation, compression, processing, dehydration and related
services to natural gas producers. Our coal and natural
resource properties, located in the Appalachian, Illinois and San
Juan basins, are leased to experienced operators in exchange
for royalty payments. More information about PVR is available
on our website at www.pvrpartners.com.
******
This release is intended to be a qualified notice under
Treasury Regulation Section 1.1446-4(b). Brokers and nominees
should treat one hundred percent (100.0%) of the Partnership's
distributions to non-U.S. investors as being attributable to income
that is effectively connected with a United States trade or business.
Accordingly, the Partnership's distributions to non-U.S. investors
are subject to federal income tax withholding at the highest
applicable effective tax rate.
******
This press release includes "forward-looking statements"
within the meaning of federal securities laws. All statements,
other than statements of historical facts, included in this release
that address activities, events or developments that the
Partnership expects, believes or anticipates will or may occur in
the future are forward-looking statements. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of
uncertainties, factors and risks, many of which are outside the
Partnership's ability to control or predict, which could cause
results to differ materially from those expected by management.
Such risks and uncertainties include, but are not limited to,
regulatory, economic and market conditions, our ability to complete
the proposed merger with Regency Energy Partners L.P., the timing
and success of business development efforts and other
uncertainties. Additional information concerning these and
other factors can be found in our press releases and public
periodic filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the year ended
December 31, 2012 and most recently
filed Quarterly Reports on Form 10-Q. Readers should not
place undue reliance on forward-looking statements, which reflect
management's views only as of the date hereof. We undertake
no obligation to revise or update any forward-looking statements,
or to make any other forward-looking statements, whether as a
result of new information, future events or otherwise.
Contact:
|
Stephen R.
Milbourne
|
|
Director - Investor
Relations
|
|
Phone:
610-975-8204
|
|
E-Mail:
invest@pvrpartners.com
|
PVR PARTNERS,
L.P.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS - unaudited
|
(in thousands,
except per unit data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
|
|
|
|
|
Natural gas
|
|
$
91,396
|
|
$
99,462
|
|
$
374,226
|
|
$
315,242
|
Natural gas
liquids
|
|
115,058
|
|
108,377
|
|
413,621
|
|
424,538
|
Gathering fees
|
|
31,640
|
|
19,736
|
|
105,115
|
|
53,831
|
Trunkline
fees
|
|
28,704
|
|
18,609
|
|
98,847
|
|
47,002
|
Coal royalties
|
|
21,085
|
|
22,983
|
|
88,075
|
|
114,133
|
Gain on sale of
assets
|
|
-
|
|
-
|
|
-
|
|
31,292
|
Other
|
|
3,763
|
|
411
|
|
37,602
|
|
21,716
|
Total
revenues
|
|
291,646
|
|
269,578
|
|
1,117,486
|
|
1,007,754
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Cost of gas
purchased
|
|
177,133
|
|
176,802
|
|
666,239
|
|
630,345
|
Operating
|
|
17,951
|
|
20,786
|
|
67,977
|
|
68,316
|
General and
administrative
|
|
14,149
|
|
12,878
|
|
54,508
|
|
47,452
|
Merger and acquisition
costs
|
|
8,138
|
|
-
|
|
8,138
|
|
14,049
|
Impairments
|
|
-
|
|
-
|
|
-
|
|
124,845
|
Depreciation, depletion and
amortization
|
|
49,909
|
|
43,043
|
|
187,941
|
|
127,344
|
Total
expenses
|
|
267,280
|
|
253,509
|
|
984,803
|
|
1,012,351
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
24,366
|
|
16,069
|
|
132,683
|
|
(4,597)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(27,886)
|
|
(23,157)
|
|
(106,248)
|
|
(68,773)
|
Loss on extinguishment of
debt
|
|
(13,703)
|
|
-
|
|
(13,703)
|
|
-
|
Derivatives
|
|
(510)
|
|
90
|
|
(1,070)
|
|
2,291
|
Interest income and
other
|
|
94
|
|
128
|
|
1,332
|
|
457
|
Net income
(loss)
|
|
$
(17,639)
|
|
$
(6,870)
|
|
$
12,994
|
|
$
(70,622)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common unit, basic
|
|
$
(0.35)
|
|
$
(0.30)
|
|
$
(0.83)
|
|
$
(1.43)
|
Earnings (loss) per
common unit, diluted
|
|
$
(0.37)
|
|
$
(0.30)
|
|
$
(0.83)
|
|
$
(1.43)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common units outstanding, basic
|
|
108,268
|
|
93,333
|
|
99,304
|
|
86,222
|
Weighted average
number of common units outstanding, diluted
|
|
112,429
|
|
93,333
|
|
99,304
|
|
86,222
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Class B units outstanding
|
|
24,094
|
|
22,149
|
|
23,372
|
|
13,630
|
Weighted average
number of Special units outstanding
|
|
4,161
|
|
10,346
|
|
8,787
|
|
6,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other data by
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eastern
Midstream:
|
|
|
|
|
|
|
|
|
Gathered volumes
(MMcfd)
|
|
776
|
|
562
|
|
649
|
|
389
|
Trunkline volumes
(MMcfd) (1)
|
|
820
|
|
405
|
|
742
|
|
197
|
Midcontinent
Midstream:
|
|
|
|
|
|
|
|
|
Daily throughput
volumes (MMcfd)
|
|
361
|
|
421
|
|
379
|
|
432
|
Coal and Natural
Resource Management:
|
|
|
|
|
|
|
|
|
Coal royalty tons (in
thousands)
|
|
6,119
|
|
6,630
|
|
25,142
|
|
30,214
|
|
|
|
|
|
|
|
|
|
(1) Trunkline volumes
include a significant portion of gathered volumes.
|
|
|
|
PVR PARTNERS,
L.P.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS - unaudited
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
7,298
|
|
$
14,713
|
|
|
|
|
Accounts
receivable
|
|
147,978
|
|
133,546
|
|
|
|
|
Assets held for
sale
|
|
-
|
|
11,450
|
|
|
|
|
Other current
assets
|
|
6,821
|
|
5,446
|
|
|
|
|
Total current assets
|
|
162,097
|
|
165,155
|
|
|
|
|
Property, plant and
equipment, net
|
|
2,189,278
|
|
1,989,346
|
|
|
|
|
Other long-term
assets
|
|
774,295
|
|
844,208
|
|
|
|
|
Total assets
|
|
$
3,125,670
|
|
$
2,998,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Partners' Capital
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
|
$
142,225
|
|
$
197,034
|
|
|
|
|
Deferred income
|
|
6,214
|
|
3,788
|
|
|
|
|
Total current liabilities
|
|
148,439
|
|
200,822
|
|
|
|
|
Other long-term
liabilities
|
|
30,595
|
|
35,468
|
|
|
|
|
Senior
notes
|
|
1,172,600
|
|
900,000
|
|
|
|
|
Revolving credit
facility
|
|
562,500
|
|
590,000
|
|
|
|
|
Partners' capital
|
|
1,211,536
|
|
1,272,419
|
|
|
|
|
Total liabilities and partners' capital
|
|
$
3,125,670
|
|
$
2,998,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS - unaudited
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Cash flows from
operating activities
|
|
|
|
|
Net income (loss)
|
|
$
(17,639)
|
|
$
(6,870)
|
|
$
12,994
|
|
$
(70,622)
|
Adjustments to reconcile net
income (loss) to
|
|
|
|
|
|
|
|
|
net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Loss on extinguishment of
debt
|
|
13,703
|
|
-
|
|
13,703
|
|
-
|
Gain on sale of
assets
|
|
-
|
|
-
|
|
(14,302)
|
|
(31,292)
|
Depreciation, depletion and
amortization
|
|
49,909
|
|
43,043
|
|
187,941
|
|
127,344
|
Impairments
|
|
-
|
|
-
|
|
-
|
|
124,845
|
Commodity derivative
contracts:
|
|
|
|
|
|
|
|
|
Total derivative losses
(gains) included in net income
|
|
510
|
|
(90)
|
|
1,070
|
|
(2,291)
|
Cash receipts (payments) to
settle derivatives for the period
|
|
(453)
|
|
(1,701)
|
|
(766)
|
|
(10,279)
|
Non-cash interest
expense
|
|
1,907
|
|
1,607
|
|
7,306
|
|
5,824
|
Non-cash unit-based
compensation
|
|
803
|
|
(215)
|
|
4,159
|
|
4,428
|
Equity earnings, net of
distributions received
|
|
2,007
|
|
11,166
|
|
7,642
|
|
11,308
|
Other
|
|
(101)
|
|
(103)
|
|
(3,460)
|
|
(1,032)
|
Changes in operating assets
and liabilities
|
|
(26,313)
|
|
(36,368)
|
|
(12,841)
|
|
(12,972)
|
Net cash provided by
operating activities
|
|
24,333
|
|
10,469
|
|
203,446
|
|
145,261
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
-
|
|
-
|
|
(2,334)
|
|
(850,156)
|
Additions to
property, plant and equipment
|
|
(69,348)
|
|
(163,926)
|
|
(413,451)
|
|
(512,375)
|
Joint venture capital
contributions
|
|
(5,100)
|
|
(15,300)
|
|
(15,800)
|
|
(37,200)
|
Proceeds from sale of
assets
|
|
-
|
|
-
|
|
70,592
|
|
62,271
|
Other
|
|
412
|
|
378
|
|
2,530
|
|
1,286
|
Net cash used in
investing activities
|
|
(74,036)
|
|
(178,848)
|
|
(358,463)
|
|
(1,336,174)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Distributions to
partners
|
|
(56,140)
|
|
(47,740)
|
|
(214,442)
|
|
(176,256)
|
Net proceeds from
equity offering
|
|
13,401
|
|
165,705
|
|
138,044
|
|
743,448
|
Proceeds from
issuance of senior notes
|
|
-
|
|
-
|
|
400,000
|
|
600,000
|
Payment to extinguish
debt
|
|
(138,070)
|
|
-
|
|
(138,070)
|
|
-
|
Repayments (proceeds)
from borrowings, net
|
|
230,000
|
|
55,000
|
|
(27,500)
|
|
49,000
|
Cash paid for debt
issuance costs
|
|
(77)
|
|
-
|
|
(9,772)
|
|
(19,206)
|
Other
|
|
(14)
|
|
-
|
|
(658)
|
|
-
|
Net cash provided by
financing activities
|
|
49,100
|
|
172,965
|
|
147,602
|
|
1,196,986
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(603)
|
|
4,586
|
|
(7,415)
|
|
6,073
|
Cash and cash
equivalents - beginning of period
|
|
7,901
|
|
10,127
|
|
14,713
|
|
8,640
|
Cash and cash
equivalents - end of period
|
|
$
7,298
|
|
$
14,713
|
|
$
7,298
|
|
$
14,713
|
|
|
|
|
|
|
|
|
|
|
|
PVR PARTNERS,
L.P.
|
|
CERTAIN NON-GAAP
FINANCIAL MEASURES - unaudited
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Reconciliation of
Non-GAAP "Total Segment Adjusted EBITDA" to GAAP "Net income
(loss)":
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA (a):
|
|
|
|
|
|
|
|
|
|
Eastern
Midstream
|
|
$
49,931
|
|
$
33,104
|
|
$
169,227
|
|
$
82,164
|
|
Midcontinent
Midstream
|
|
14,650
|
|
14,167
|
|
62,383
|
|
52,168
|
|
Coal and Natural
Resource Management
|
|
17,832
|
|
20,541
|
|
82,850
|
|
104,717
|
|
Total segment
adjusted EBITDA
|
|
$
82,413
|
|
$
67,812
|
|
$
314,460
|
|
$
239,049
|
|
Adjustments to
reconcile total Segment Adjusted EBITDA to Net income
(loss)
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
(49,909)
|
|
(43,043)
|
|
(187,941)
|
|
(127,344)
|
|
Impairments on
PP&E and equity investments
|
|
-
|
|
(8,700)
|
|
-
|
|
(133,545)
|
|
Merger and
acquisition costs
|
|
(8,138)
|
|
-
|
|
(8,138)
|
|
(14,049)
|
|
Gain on sale of
assets
|
|
-
|
|
-
|
|
14,302
|
|
31,292
|
|
Interest
expense
|
|
(27,886)
|
|
(23,157)
|
|
(106,248)
|
|
(68,773)
|
|
Loss on
extinguishment of debt
|
|
(13,703)
|
|
-
|
|
(13,703)
|
|
-
|
|
Derivatives
|
|
(510)
|
|
90
|
|
(1,070)
|
|
2,291
|
|
Other
|
|
94
|
|
128
|
|
1,332
|
|
457
|
|
Net income
(loss)
|
|
$
(17,639)
|
|
$
(6,870)
|
|
$
12,994
|
|
$
(70,622)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP "Net income (loss)" to Non-GAAP "Distributable cash
flow":
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(17,639)
|
|
$
(6,870)
|
|
$
12,994
|
|
$
(70,622)
|
|
Depreciation,
depletion and amortization
|
|
49,909
|
|
43,043
|
|
187,941
|
|
127,344
|
|
Impairments on
PP&E and equity investments
|
|
-
|
|
8,700
|
|
-
|
|
133,545
|
|
Merger and
acquisition costs
|
|
8,138
|
|
-
|
|
8,138
|
|
14,049
|
|
Gain on sale of
assets
|
|
-
|
|
-
|
|
(14,302)
|
|
(31,292)
|
|
Loss on
extinguishment of debt
|
|
13,703
|
|
-
|
|
13,703
|
|
-
|
|
Derivative
contracts:
|
|
|
|
|
|
|
|
|
|
Derivative
(gains) losses included in net income
|
|
510
|
|
(90)
|
|
1,070
|
|
(2,291)
|
|
Cash payments
to settle derivatives for the period
|
|
(453)
|
|
(1,701)
|
|
(766)
|
|
(10,279)
|
|
Equity earnings from
joint ventures, net of distributions
|
|
2,007
|
|
2,466
|
|
7,642
|
|
2,608
|
|
Maintenance capital
expenditures
|
|
(5,047)
|
|
(4,821)
|
|
(16,905)
|
|
(17,018)
|
|
|
|
|
|
|
|
|
|
|
|
Distributable cash
flow (b)
|
|
$
51,128
|
|
$
40,727
|
|
$
199,515
|
|
$
146,044
|
|
|
|
|
|
|
|
|
|
|
|
Distribution to
Partners:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash
distribution paid during the period
|
|
$
56,140
|
|
$
47,740
|
|
$
214,442
|
|
$
176,256
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP "Net income (loss)" to Non-GAAP "Net income as
adjusted":
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(17,639)
|
|
$
(6,870)
|
|
$
12,994
|
|
$
(70,622)
|
|
Impairments on
PP&E and equity investments
|
|
-
|
|
8,700
|
|
-
|
|
133,545
|
|
Acquisition related
costs
|
|
8,138
|
|
-
|
|
8,138
|
|
14,049
|
|
Gain on sale of
assets
|
|
-
|
|
-
|
|
(14,302)
|
|
(31,292)
|
|
Loss from
extinguishment of debt
|
|
13,703
|
|
-
|
|
13,703
|
|
-
|
|
Adjustments for
derivatives:
|
|
|
|
|
|
|
|
|
|
Derivative (gains)
losses included in net income
|
|
510
|
|
(90)
|
|
1,070
|
|
(2,291)
|
|
Cash payments to
settle derivatives for the period
|
|
(453)
|
|
(1,701)
|
|
(766)
|
|
(10,279)
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as
adjusted (c)
|
|
$
4,259
|
|
$
39
|
|
$
20,837
|
|
$
33,110
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Segment Adjusted
EBITDA, or earnings before interest, tax and depreciation,
depletion and amortization ("DD&A"), represents net income plus
DD&A, plus impairments, plus merger and acquisition costs,
minus gain on sale of assets, plus interest expense, plus loss on
extinguishment of debt, (plus) minus derivative (losses) gains and
minus other items included in net income. We believe EBITDA
or a version of Adjusted EBITDA is commonly used by investors and
professional research analysts in the valuation, comparison, rating
and investment recommendations of companies in the natural gas
midstream and coal industries. We use this information for
comparative purposes within the industry. Adjusted EBITDA is
not a measure of financial performance under GAAP and should not be
considered as a measure of liquidity or as an alternative to net
income.
|
|
|
(b)
|
Distributable cash
flow represents net income (loss) plus DD&A, plus impairments,
plus merger and acquisition costs, minus gain on sale of assets,
plus loss on extinguishment of debt, plus (minus) derivative losses
(gains) included in net income, plus (minus) cash received (paid)
for derivative settlements, minus equity earnings in joint
ventures, plus cash distributions from joint ventures, minus
maintenance capital expenditures. At management's discretion,
a fixed amount of $1.8 million per quarter in 2013 and $1.3 million
per quarter in 2012 has been included in maintenance capital for
well connects. Distributable cash flow is also the quantitative
standard used by investors and professional research analysts in
the valuation, comparison, rating and investment recommendations of
publicly traded partnerships. Distributable cash flow is presented
because we believe it is a useful adjunct to net cash provided by
operating activities under GAAP. Distributable cash flow is not a
measure of financial performance under GAAP and should not be
considered as an alternative to cash flows from operating,
investing or financing activities, as an indicator of cash flows,
as a measure of liquidity or as an alternative to net income. For
comparative purposes, prior year amounts exclude replacement
capital expenditures.
|
|
|
(c)
|
Net income, as
adjusted, represents net income adjusted to exclude the effects of
non-cash impairment charges, one-time charges related to
merger and acquisition costs, minus gain on sale of assets,
plus loss from extinguishment of debt, and changes in the fair
value of derivatives. We believe this presentation is commonly used
by investors and professional research analysts in the valuation,
comparison, rating and investment recommendations of companies in
the natural gas midstream industry. We use this information for
comparative purposes within the industry. Net income, as adjusted,
is not a measure of financial performance under GAAP and should not
be considered as a measure of liquidity or as an alternative to net
income.
|
PVR PARTNERS,
L.P.
|
QUARTERLY SEGMENT
INFORMATION - unaudited
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Eastern
Midstream
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
|
|
|
|
|
|
|
Gathering fees
|
|
$
30,999
|
|
$
18,659
|
|
$
102,161
|
|
$
46,975
|
Trunkline fees
|
|
28,704
|
|
18,608
|
|
98,847
|
|
47,002
|
Other
|
|
(540)
|
|
2,686
|
|
(791)
|
|
5,373
|
Total
revenues
|
|
59,163
|
|
39,953
|
|
200,217
|
|
99,350
|
Expenses
|
|
|
|
|
|
|
|
|
Operating
|
|
3,128
|
|
3,121
|
|
11,173
|
|
7,332
|
General and
administrative
|
|
6,104
|
|
3,728
|
|
19,817
|
|
9,854
|
Merger and acquisition
costs
|
|
2,713
|
|
-
|
|
2,713
|
|
14,049
|
Depreciation, depletion and
amortization
|
|
26,512
|
|
20,391
|
|
97,973
|
|
42,713
|
Total
expenses
|
|
38,457
|
|
27,240
|
|
131,676
|
|
73,948
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
20,706
|
|
$
12,713
|
|
$
68,541
|
|
$
25,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midcontinent
Midstream
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
|
|
|
|
|
|
|
Natural gas
|
|
$
91,396
|
|
$
99,462
|
|
$
374,226
|
|
$
315,242
|
Natural gas
liquids
|
|
115,058
|
|
108,377
|
|
413,621
|
|
424,538
|
Gathering fees
|
|
641
|
|
1,078
|
|
2,954
|
|
6,856
|
Gain on sale of
plant
|
|
-
|
|
-
|
|
-
|
|
31,292
|
Other (1)
|
|
181
|
|
(8,247)
|
|
16,364
|
|
(6,205)
|
Total
revenues
|
|
207,276
|
|
200,670
|
|
807,165
|
|
771,723
|
Expenses
|
|
|
|
|
|
|
|
|
Cost of gas
purchased
|
|
177,133
|
|
176,802
|
|
666,239
|
|
630,345
|
Operating
|
|
10,922
|
|
12,567
|
|
43,441
|
|
44,209
|
General and
administrative
|
|
4,571
|
|
5,834
|
|
20,800
|
|
22,409
|
Merger and acquisition
costs
|
|
2,713
|
|
-
|
|
2,713
|
|
-
|
Impairments
|
|
-
|
|
-
|
|
-
|
|
124,845
|
Depreciation, depletion and
amortization
|
|
16,130
|
|
14,609
|
|
61,809
|
|
51,829
|
Total
expenses
|
|
211,469
|
|
209,812
|
|
795,002
|
|
873,637
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
(4,193)
|
|
$
(9,142)
|
|
$
12,163
|
|
$
(101,914)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal and Natural
Resource Management
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
|
|
|
|
|
|
|
Coal royalties
|
|
$
21,085
|
|
$
22,983
|
|
$
88,075
|
|
$
114,133
|
Coal services
|
|
146
|
|
1,038
|
|
2,698
|
|
5,621
|
Timber
|
|
1,176
|
|
1,620
|
|
5,644
|
|
5,904
|
Oil and gas
royalties
|
|
1,165
|
|
691
|
|
3,410
|
|
2,856
|
Other
|
|
1,635
|
|
2,623
|
|
10,277
|
|
8,167
|
Total
revenues
|
|
25,207
|
|
28,955
|
|
110,104
|
|
136,681
|
Expenses
|
|
|
|
|
|
|
|
|
Operating
|
|
3,901
|
|
5,098
|
|
13,363
|
|
16,775
|
General and
administrative
|
|
3,474
|
|
3,316
|
|
13,891
|
|
15,189
|
Merger and acquisition
costs
|
|
2,712
|
|
-
|
|
2,712
|
|
-
|
Depreciation, depletion and
amortization
|
|
7,267
|
|
8,043
|
|
28,159
|
|
32,802
|
Total
expenses
|
|
17,354
|
|
16,457
|
|
58,125
|
|
64,766
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
7,853
|
|
$
12,498
|
|
$
51,979
|
|
$
71,915
|
|
|
|
|
|
|
|
|
|
(1) Includes a $14.3
million third quarter 2013 gain on sale of assets and a $8.7
million impairment charge related to an equity investment
in the fourth quarter of 2012.
|
|
|
|
|
|
|
|
|
|
|
PVR PARTNERS,
L.P.
|
|
OPERATING
STATISTICS
|
|
($ Amounts in
000s)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
EASTERN
MIDSTREAM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes
(MMcfd)
|
|
|
|
|
|
|
|
Lycoming
Trunkline
|
303
|
|
200
|
|
318
|
|
146
|
Wyoming
Trunkline
|
517
|
|
205
|
|
424
|
|
51
|
Total Trunkline
Volume
|
820
|
|
405
|
|
742
|
|
197
|
|
|
|
|
|
|
|
|
Lycoming
Gathering
|
286
|
|
246
|
|
249
|
|
170
|
Wyoming
Gathering
|
308
|
|
205
|
|
225
|
|
154
|
East Lycoming
Gathering
|
122
|
|
92
|
|
117
|
|
53
|
Bradford
Gathering
|
52
|
|
15
|
|
50
|
|
9
|
Preston
Gathering
|
1
|
|
-
|
|
-
|
|
-
|
Greene
Gathering
|
7
|
|
4
|
|
8
|
|
3
|
Total
Gathering
|
776
|
|
562
|
|
649
|
|
389
|
Total
Throughput
|
1,596
|
|
967
|
|
1,391
|
|
586
|
|
|
|
|
|
|
|
|
Total Trunkline
Fees
|
$
28,704
|
|
$
18,608
|
|
$
98,847
|
|
$
47,002
|
Total Gathering
Fees
|
$
30,999
|
|
$
18,659
|
|
$
102,161
|
|
$
46,975
|
|
|
|
|
|
|
|
|
Trunkline Fees /
Mcf
|
$
0.38
|
|
$
0.50
|
|
$
0.36
|
|
$
0.65
|
Gathering Fees /
Mcf
|
$
0.43
|
|
$
0.36
|
|
$
0.43
|
|
$
0.33
|
|
|
|
|
|
|
|
|
MIDCONTINENT
MIDSTREAM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes
(MMcfd)
|
|
|
|
|
|
|
|
Panhandle
System
|
310
|
|
369
|
|
327
|
|
354
|
Crossroads System
(1)
|
-
|
|
-
|
|
-
|
|
27
|
Crescent
System
|
29
|
|
28
|
|
29
|
|
25
|
Hamlin
System
|
6
|
|
6
|
|
6
|
|
7
|
Total Processing
Systems
|
345
|
|
403
|
|
362
|
|
413
|
|
|
|
|
|
|
|
|
Arkoma
System
|
8
|
|
9
|
|
9
|
|
9
|
North Texas
System
|
8
|
|
9
|
|
8
|
|
10
|
Total Gathering Only
Systems
|
16
|
|
18
|
|
17
|
|
19
|
|
|
|
|
|
|
|
|
Total All
Systems
|
361
|
|
421
|
|
379
|
|
432
|
|
|
|
|
|
|
|
|
Total Gathering and
Processing Fees, Net(2)
|
$
29,962
|
|
$
32,115
|
|
$
124,562
|
|
$
116,291
|
|
|
|
|
|
|
|
|
Fees Per
Mcf
|
$
0.90
|
|
$
0.83
|
|
$
0.90
|
|
$
0.74
|
|
|
|
|
|
|
|
|
(1)
Crossroads System was sold July 3, 2012
|
|
|
|
|
|
|
|
(2)
Processing fees include revenues from natural gas, natural
gas liquids and gathering fees less cost of gas
purchased
|
|
|
|
|
|
|
|
|
COAL
PRODUCTION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal royalty tons
by region (000s)
|
|
|
|
|
|
|
|
Central
Appalachia
|
2,251
|
|
2,830
|
|
10,261
|
|
13,920
|
Northern
Appalachia
|
938
|
|
1,093
|
|
3,320
|
|
4,004
|
Illinois
Basin
|
629
|
|
782
|
|
2,382
|
|
3,682
|
San Juan
Basin
|
2,301
|
|
1,925
|
|
9,179
|
|
8,608
|
Total
Tons
|
6,119
|
|
6,630
|
|
25,142
|
|
30,214
|
|
|
|
|
|
|
|
|
Total Coal
Royalties
|
$
21,085
|
|
$
22,983
|
|
$
88,075
|
|
$
114,133
|
|
|
|
|
|
|
|
|
Average Coal
Royalty per ton
|
$
3.45
|
|
$
3.47
|
|
$
3.50
|
|
$
3.78
|
SOURCE PVR Partners, L.P.