Page 14 - NorthAmOil Week 18

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NEWS IN BRIEF
NorthAmOil
to a minimum of 15 wells per year beginning with the third program year.
“We are excited to partner with Aethon, one of the most experienced operators in the Haynesville shale, to restart development of this important, high-net interest area for Black Stone,” stated Thomas L. Carter, Jr., Black Stone Minerals’ chairman and chief executive officer. “The Shelby Trough holds enormous resource potential, and our deal with
Aethon positions both companies to benefit from decades of attractive development opportunities.”
BLACK STONE MINERALS, May 05, 2020
MIDSTREAM
MagellanMidstreamreports
first-quarter 2020 financial
results
Magellan Midstream Partners today reported net income of $287.6mn for first quarter 2020 compared to $207.7mn for first quarter 2019. The increase in first quarter 2020 net income was primarily driven by mark-to-market (MTM) adjustments for hedge positions related to the partnership’s commodity-related activities.
Diluted net income per common unit
was $1.26 in first quarter 2020 and 91 cents
in first quarter 2019. Diluted net income per unit excluding MTM commodity-related pricing adjustments, a non-generally accepted accounting principles (non-GAAP) financial measure, of $1.28 for first quarter 2020 was higher than the $1.08 guidance previously provided by management primarily as a result of lower operating expenses, higher gas liquids blending margins as well as a $12.9mn, or 6-cent per unit, gain on the sale of a portion of the partnership’s investment in Saddlehorn Pipeline Company during February 2020.
Distributable cash flow (DCF), a non- GAAP financial measure that represents the amount of cash generated during the period that is available to pay distributions, was
$306.5mn for first quarter 2020 compared to $318.0mn for first quarter 2019.
“While we are pleased with our solid financial results for the first quarter of 2020, we remain focused on managing Magellan’s business through the current challenging environment. Our employees have ensured Magellan’s essential operations remain fully functional to provide continuity of fuel supply to the communities we serve, and we thank them for their professionalism and dedication during this difficult time,” said Michael Mears, chief executive officer. “Although we expect near-term financial impacts from the significantly lower commodity prices and unprecedented reductions in refined products demand, Magellan’s disciplined management approach,resilientbusinessmodeland financial strength position us well to respond not only to the short-term industry challenges but to successfully manage our company for the long term.”
MAGELLAN MIDSTREAM PARTNERS, May 01, 2020
NuStar Energy reports
first-quarter 2020 earnings
results
NuStar Energy today reported its first quarter 2020 earnings, which included a net loss of $148mn, resulting from a $225mn non-
cash goodwill impairment charge related to its crude oil pipelines reporting unit. The non-cash impairment charge also resulted
in unadjusted earnings per unit, or EPU, of ($1.68) for the first quarter, and unadjusted earnings before interest, taxes, depreciation and amortization from continuing operations, or EBITDA, of ($29mn) for the first quarter.
To put those results in perspective, and
to provide an “apples-to-apples” comparison with first quarter 2019 results, without the non-cash impairment charge, NuStar’s adjusted net income from continuing operations was $77mn for the first quarter of 2020, up $48mn or 167% from $29mn for the first quarter of 2019, while adjusted EPU from
continuing operations for the first quarter of 2020 were $0.39, compared to a loss per unit from continuing operations of ($0.06) for the first quarter of 2019.
Adjusted EBITDA from continuing operations were $196mn for the first quarter of 2020, up $54mn or 38% from $141mn for the first quarter of 2019, while distributable cash flow (DCF) from continuing operations available to common limited partners was $122mn for the first quarter of 2020, up $55mn or 81% compared to $67mn in the first quarter of 2019.
NuStar’s distribution coverage ratio to common limited partners from continuing operations was 2.8 times for the three months ended March 31, 2020, and the Debt-to- EBITDA ratio was 3.73 times as of March
31, 2020, marking the partnership’s fourth consecutive quarter below 4.0 times, far below its debt covenant limit of 5.0 times.
NUSTAR ENERGY, May 05, 2020
Summit Midstream Partners, LP to acquire Summit Midstream Partners, LLC, the owner
of its general partner,
in transformational simplification transaction; suspends common & series a preferred unit distributions; provides updated 2020 guidance and preliminary 1Q 2020 results; schedules 1Q 2020 earnings call
Summit Midstream Partners, LP announced today that it has entered into a definitive agreement with Energy Capital Partners II, LLC (ECP) to acquire Summit Midstream Partners, LLC (Summit Investments), the privately held company that indirectly owns SMLP’s general partner, Summit Midstream GP, LLC (the GP), as well as 5.9mn SMLP common units owned separately by ECP, for $35mn in cash plus warrants covering 10mn SMLP common units. Pursuant to terms of
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Week 18 07•May•2020