CNX Midstream Partners LP (NYSE: CNXM) today reported financial and operational results for the three and nine months ended September 30, 2019(1).
Third Quarter Results
The Partnership continued its solid financial performance during the three and nine months ended September 30, 2019. Comparative results net to the Partnership, with the exception of net cash provided by operating activities, which is presented on a gross consolidated basis, were as follows:
"CNXM delivered another strong quarter," commented Nicholas J. DeIuliis, CEO of CNX Midstream GP LLC, the general partner of the Partnership (the "General Partner"). "As compared to the third quarter of 2018, Adjusted EBITDA and distributable cash flow were up by 26% and 25%, respectively. This marks the 18th consecutive quarterly cash distribution increase at the targeted 15% annual growth rate. The 2019 capital build-out is nearly complete, and CNXM continues to expect capital to decline significantly in 2020, resulting in approximately $130 million in free cash flow(3)."
2019 and 2020 Updated Guidance
In 2020, despite a lower volume range compared to the previous guidance, Adjusted EBITDA remains unchanged due primarily to offsetting general and administrative cost reductions.
Quarterly Distribution
As previously announced, the Board of Directors of its general partner, CNX Midstream GP LLC, has declared a cash distribution of $0.4001 per unit with respect to the third quarter of 2019. The distribution will be paid on November 12, 2019 to unitholders of record as of the close of business on November 5, 2019. The distribution, which equates to an annual rate of $1.6004 per unit, represents an increase of 3.5% over the prior quarter, and an increase of 15% over the distribution paid with respect to the third quarter of 2018.
Capital Investment and Resources
For the third quarter of 2019, CNX Midstream's total capital investment net to the Partnership was $63.9 million, which includes investment in expansion projects of $58.5 million and maintenance capital of $5.4 million.
As of September 30, 2019, CNX Midstream had outstanding borrowings of $246.0 million under its $600.0 million revolving credit facility.
CNX Midstream is a growth-oriented master limited partnership that owns, operates, develops and acquires gathering and other midstream energy assets to service natural gas production in the Appalachian Basin in Pennsylvania and West Virginia. Our assets include natural gas gathering pipelines and compression and dehydration facilities, as well as condensate gathering, collection, separation and stabilization facilities. More information is available at our website www.cnxmidstream.com.
