CNX Midstream Partners LP (NYSE: CNXM) announced today that in response to the uncertainty surrounding the global macroeconomic environment, oil and gas markets, debt and equity capital markets, together with the continued impact of the coronavirus, it is re-evaluating its current capital allocation opportunities and will remain flexible based on market conditions and availability of opportunities.
CNXM is well prepared for this scenario as the resilience and strength of our assets and business model are projected to generate significant free cash flow in 2020 and 2021. Combined with our strong balance sheet that reflects a conservative leverage profile and significant liquidity, CNXM is in an advantageous position with the optionality to pursue one or more of the following: debt retirement of the Partnership's revolving credit facility or bonds, opportunistic repurchases of its equity securities, accretive investment or divestment opportunities and/or examination of its existing distribution target. During this period of extreme volatility, CNXM remains focused on continuing its strong track record of delivery on its financial and operating targets, generating free cash flow, preserving liquidity, and maintaining optionality to generate low risk returns through capital market dislocations.
The chief executive officer of CNXM, Nicholas DeIuliis, stated, "With the continued uncertainty and volatility of the markets, CNXM will remain flexible in these challenging times to make the decisions that it believes are in the best interests of our unitholders; as variables continue to change over the coming days, weeks and months, we will remain steadfast in our commitment to react promptly and prudently, and to make decisions that create value for our unitholders." Mr. DeIuliis concluded by stating that "we believe that CNXM will be well positioned to navigate through the current climate to seize opportunities and further the Partnership's strategic vision."
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.
