Altus Midstream announces 2Q20 results
Published by Aimee Knight,
Altus Midstream Company has announced its results for the three-month period ending 30 June, 2020.
The company reported second-quarter 2020 net income, including noncontrolling interests, of US$17.7 million. Adjusted EBITDA for the second quarter 2020 was US$43.6 million. Gathering and processing (G&P) throughput volumes for the period averaged 434 million ft3/d, approximately 75% of which was rich gas. Volumes were impacted by curtailments of approximately 110 million ft3/d due to commodity pricing and unscheduled downtime.
Capital investments during the quarter were approximately US$74 million, which included US$2 million for G&P infrastructure and US$72 million for joint venture (JV) pipelines, comprising capital calls for ownership in the Permian Highway Pipeline (PHP).
“Altus Midstream has a healthy balance sheet and diversified cash flow streams from JV pipelines and its gathering and processing businesses. We remain well-positioned to meet the headwinds facing our industry due to COVID-19 and the associated market shocks. We anticipate generating free cash flow with the startup of the Permian Highway Pipeline in early 2021,” said Clay Bretches, Altus Midstream CEO and President. “I’m proud to share that, in April, our dedicated team achieved a full year without a recordable injury at our operated facilities. That period included construction, commissioning and operation of three state-of-the-art cryogenic gas processing plants, new procedures to address COVID-19, and a laser focus on cost reduction that has yielded tremendous results. Our G&P operating costs are down 10% and 23% compared to the first quarter of 2020 and fourth quarter of 2019, respectively. We will continue to focus on safe operations, cost control, and bringing in additional third-party business.”
“The Gulf Coast Express natural gas pipeline continues to make steady contributions to Altus’ quarterly results thanks to its minimum volume commitments,” Bretches continued.
Reduced drilling activity and production curtailments in the Permian Basin, along with low NGL prices, impacted second-quarter volumes on the Shin Oak Natural Gas Liquids Pipeline.
“We expect higher volumes and EBITDA contributions from Shin Oak during the third quarter as production activity across the basin resumes and margins remain favourable for producers to recover and ship ethane,” Bretches added.
The EPIC crude line, which went into full service on 1 April, is supported by a combination of acreage dedications and minimum volume commitments. EPIC continues to attract volumes from operators looking for access to storage and ship-loading facilities in the Corpus Christi area.
PHP, a natural gas pipeline that will connect West Texas to the Gulf Coast near Houston, remains on schedule for startup in early 2021 and forecasted project costs remain within 5% of the original budget.
“Looking ahead, we don’t see a need to access any external capital sources to execute our plans,” said Ben Rodgers, Altus Midstream Chief Financial Officer. “We are raising the lower end of our 2020 EBITDA guidance, resulting in a new expected range between US$160 million and US$190 million and have updated 2021 guidance, including an EBITDA range of US$220 million to US$260 million.”
Read the article online at: https://www.worldpipelines.com/business-news/30072020/altus-midstream-announces-2q20-results/
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