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News Article | May 9, 2017
Site: www.prnewswire.com

Morgan Stanley, Barclays and J.P. Morgan acted as joint book-running managers for the offering. Baird, Citigroup, Goldman Sachs & Co. LLC and Wells Fargo Securities acted as book-running managers. In connection with the offering, Antero Resources Midstream Management LLC ("ARMM") has converted into a Delaware limited partnership, and, in connection with such conversion, has changed its name to Antero Midstream GP LP.  ARMM has filed a registration statement relating to these securities with the U.S. Securities and Exchange Commission (the "SEC"), which has been declared effective.  The offering of these securities is being made only by means of a written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.  A copy of the final prospectus for the offering may be obtained, when available, from: A copy of the final prospectus may be obtained free of charge by visiting the SEC's website at www.sec.gov. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Antero Midstream GP LP is a Delaware limited partnership that owns the general partner of Antero Midstream and incentive distribution rights in Antero Midstream. This release includes "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond AMGPs control. All statements, other than historical facts, included in this release are forward-looking statements. All forward-looking statements speak only as of the date of this release and are based upon a number of assumptions. Although AMGP believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that the assumptions underlying these forward-looking statements will be accurate or the plans, intentions or expectations expressed herein will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Nothing in this release is intended to constitute guidance with respect to Antero Midstream. AMGP cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond AMGP's and Antero Midstream's control, incident to Antero Midstream's business. These risks include, but are not limited to, commodity price volatility, inflation, environmental risks, drilling and completion and other operating risks, regulatory changes, the uncertainty inherent in projecting future rates of production, cash flow and access to capital and the timing of development expenditures. For more information, contact Michael Kennedy – CFO of Antero Midstream GP LP at (303) 357-6782 or mkennedy@anteroresources.com. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/antero-midstream-gp-lp-announces-closing-of-initial-public-offering-300454601.html


News Article | May 8, 2017
Site: www.prnewswire.com

As a result of the recent spring borrowing base redetermination, the borrowing base under Antero's upstream credit facility was reaffirmed at $4.75 billion.  Lender commitments under the facility remain at $4.0 billion.  The bank syndicate, which is co-led by JPMorgan Chase Bank, N.A. and Wells Fargo, N.A., is currently comprised of 29 banks. In February 2017, Energy Transfer Partners, L.P. ("Energy Transfer") received FERC approval to proceed with the construction of the Rover Pipeline ("Rover").  Energy Transfer has confirmed its plans to place Rover into service in the third quarter of 2017, with Phases 1 and 2 expected to come on line in July 2017 and November 2017, respectively.  Antero is an anchor shipper on Rover with an 800,000 MMBtu/d firm commitment.  The pipeline will connect Antero's Marcellus and Utica Shale assets to the Midwest and Gulf Coast via additional downstream firm transportation already in service.  The project will also enable Antero to transport natural gas both from the Seneca (via Phase 1) and Sherwood (via Phase 2) Processing Facilities, allowing for maximum optionality on its firm transportation portfolio, and further strengthens the Company's ability to deliver on its long-term production targets through 2020. In February 2017, Sunoco Logistics Partners LP ("Sunoco") began construction on the Mariner East 2 pipeline project after receiving the necessary permits from the Pennsylvania Department of Environmental Protection.  The pipeline will transport NGLs from Southwestern Pennsylvania and Eastern Ohio to the Marcus Hook terminal and export facility near Philadelphia, Pennsylvania.  Antero is an anchor shipper on Mariner East 2 with a 61,500 barrel per day commitment (11,500 barrels of ethane, 35,000 barrels of propane and 15,000 barrels of butane).  The pipeline is expected to be placed into service in the fourth quarter of 2017.  Antero is forecasting a C3+ NGL price realization improvement once Mariner East 2 is placed into service as the Company will have the ability  to export ethane, propane and butane to international markets. Antero Resources recently committed to plants 8 through 11 at the Sherwood Facility and they are expected to be placed into service over the next 12 to 18 months. These four 200 MMcf/d plants at the Sherwood Processing Facility, in addition to Sherwood 7, will be owned by the recently formed joint venture between Antero Midstream Partners LP (NYSE: AM) ("Antero Midstream" or the "Partnership") and MarkWest Energy Partners, L.P. ("MarkWest"), a wholly owned subsidiary of MPLX, L.P.  Plants 8 through 11 are expected to be placed into service in the third quarter of 2017, first quarter of 2018, third quarter of 2018 and fourth quarter of 2018, respectively. Plant 7 was placed into service in February of 2017. First Quarter 2017 Financial and Operating Results As of March 31, 2017, Antero owned a 59% limited partner interest in Antero Midstream.  Antero Midstream's results are consolidated with Antero's results. For the three months ended March 31, 2017, the Company reported net income of $268 million, or $0.85 per basic and diluted share, compared to a net loss of $5 million, or $(0.02) per basic and diluted share, in the first quarter of 2016.  Net income for the first quarter of 2017 included the following items: Excluding the items detailed above, the Company's results for the first quarter of 2017 were as follows: For a description of adjusted net income and adjusted EBITDAX and reconciliations to their nearest comparable GAAP measures, please read "Non-GAAP Financial Measures." Antero's net daily production for the first quarter of 2017 averaged 2,144 MMcfe/d, including 99,119 Bbl/d of liquids (28% liquids).  First quarter 2017 production represents an organic production growth rate of 22% from the first quarter of 2016 and an 8% increase compared to the fourth quarter of 2016.  First quarter 2017 C3+ natural gas liquids ("NGLs") and oil production averaged 66,313 Bbl/d and 7,140 Bbl/d, respectively.  Ethane (C2) production averaged 25,666 Bbl/d while leaving approximately 68,000 Bbl/d of ethane in the natural gas stream.  Total liquids production for the first quarter of 2017 represents an organic production growth rate of 45% and 14% as compared to the first quarter of 2016 and fourth quarter of 2016, respectively. Antero's average natural gas price before hedging increased 61% from the prior year quarter to $3.35 per Mcf, a $0.03 per Mcf premium to the average Nymex natural gas price for the period.  Virtually all of Antero's first quarter 2017 natural gas revenue was realized at currently favorable price indices, including Columbia Gas Transmission (TCO), Chicago, MichCon, Gulf Coast and Nymex.  Antero's average realized natural gas price after hedging for the first quarter of 2017 was $3.89 per Mcf, a $0.57 premium to the Nymex average natural gas price for the period, and a 14% decrease compared to the prior year quarter.  During the quarter, Antero realized a cash settled natural gas hedge gain of $75 million, or $0.54 per Mcf compared to $302 million, or $2.46 per Mcf in the prior year quarter. The Company's average realized C3+ NGL price before hedging for the first quarter of 2017 was $29.52 per barrel, or 57% of the average Nymex WTI oil price, which represents a 110% increase as compared to the prior year quarter.  The improvement in C3+ NGL pricing is primarily due to an increase in Mont Belvieu pricing combined with an improvement in local differentials.  Antero's average realized C3+ NGL price including hedges was $24.01 per barrel, a 27% increase compared to the first quarter of 2016.  The Company's average realized ethane price before hedging for the first quarter of 2017 was $0.19 per gallon, or $8.00 per barrel.   Antero's average realized ethane price including hedges for the first quarter of 2017 was $0.21 per gallon, or $8.73 per barrel.  The average realized oil price before hedging was $41.96 per barrel, a $9.81 differential to Nymex WTI and a 95% increase as compared to the first quarter of 2016.  Antero's average realized oil price including hedges was $43.17 per barrel, an $8.60 differential to Nymex WTI for the period. Antero's average natural gas-equivalent price including C2+ NGLs and oil, but excluding hedge settlements, increased from the prior year quarter by 69% to $3.57 per Mcfe.  The Company's average natural gas-equivalent price, including C2+ NGLs, oil and hedge settlements, decreased by 8% to $3.80 per Mcfe compared to the prior year quarter.  For the first quarter of 2017, Antero realized a total cash settled hedge gain on all products of $45 million, or $0.23 per Mcfe. Commenting on NGL price improvements and the outlook on liquids production, Glen Warren, President and CFO, said, "NGL price realizations for the quarter were strong, as we were able to achieve a pre-hedge C3+ NGL price of 57% of the average Nymex WTI oil price, which is above the high end of our recently increased 2017 NGL price guidance range of 50% to 55%.  The uptick in liquids pricing compliments our market leading liquids-rich inventory in Appalachia and further highlights the momentum we have established through increased liquids production and forward-looking approach to capitalize on the NGL infrastructure buildout in the Northeast.  Looking ahead, we expect this momentum to continue as Antero Midstream's recently announced joint venture with MarkWest combined with the expected startup of Mariner East 2 pipeline later this year provides tremendous visibility around getting our NGLs to market at favorable pricing." Total operating revenue for the first quarter of 2017 was $1.2 billion as compared to $721 million for the first quarter of 2016.  Operating revenue for the first quarter of 2017 included a $394 million non-cash gain on unsettled hedges, while the first quarter of 2016 included a $44 million non-cash loss on unsettled hedges.  During the first quarter of 2017, the non-cash gain on unsettled hedges was driven by a decrease in natural gas futures pricing.  Revenue excluding the unrealized hedge gain was $802 million, a 5% increase compared to the first quarter of 2016.  Liquids production contributed 32% of total product revenues before hedges in the first quarter of 2017, as compared to a 25% contribution for the prior year quarter.  For a reconciliation of revenue excluding unrealized hedge gains to operating revenue, the most comparable GAAP measure, please read "Non-GAAP Financial Measures." Marketing revenue for the first quarter of 2017 was $66 million.  Antero's marketing revenue was primarily associated with the sale of third party gas purchased to utilize the Company's excess firm transportation capacity on the Tennessee, Columbia Gas and Rockies Express Pipelines.  Marketing expense for the first quarter of 2017 was $90 million, including costs related to excess capacity and the cost of purchasing third party gas.  Net marketing expense was $24 million, or $0.12 per Mcfe, for the first quarter of 2017, representing a 50%, or $0.12 per Mcfe decrease from the first quarter of 2016. Per unit cash production expense (lease operating, gathering, compression, processing, transportation, and production and ad valorem taxes) for the first quarter of 2017 was $1.59 per Mcfe, a 7% increase compared to $1.49 per Mcfe in the prior year quarter.  The increase is primarily due to increased utilization of a long haul pipeline which has higher per unit transportation costs as compared to our transportation portfolio average.  The per unit cash production expense for the quarter included $0.08 per Mcfe for lease operating costs, $1.38 per Mcfe for gathering, compression, processing and transportation costs and $0.13 per Mcfe for production and ad valorem taxes.  Per unit general and administrative expense for the first quarter of 2017, excluding non-cash equity-based compensation expense was $0.20 per Mcfe, a 5% decrease from the first quarter of 2016, driven by the increase in production.  Per unit depreciation, depletion and amortization expense decreased 13% from the prior year quarter to $1.05 per Mcfe, primarily driven by increases in Antero's estimated recoverable reserves as well as decreases in its per unit development costs. Adjusted EBITDAX of $365 million for the first quarter of 2017 represents a 3% increase compared to the prior year quarter.  Adjusted EBITDAX margin for the quarter was $1.89 per Mcfe, representing a 15% decrease from the prior year quarter, driven primarily by a reduction in gains on settled derivatives.  For the first quarter of 2017, cash flow from operations was $394 million, a 16% increase from the prior year quarter.  Cash flow from operations before changes in working capital was $297 million, a 2% increase from the first quarter of 2016. For a description of adjusted EBITDAX, adjusted EBITDAX margin, as well as cash flow from operations before changes in working capital and reconciliations to their nearest comparable GAAP measures, please read "Non-GAAP Financial Measures." The following table details the components of average net production and average realized prices for the three months ended March 31, 2017: Marcellus Shale — Antero completed and placed on line 25 horizontal Marcellus wells during the first quarter of 2017 with an average lateral length of 8,850 feet.  All 25 wells completed in the first quarter of 2017 have been on line for more than 30 days and had an average 30-day rate on choke of 18.6 MMcfe/d while rejecting ethane (21% liquids). Current average well costs are $0.87 million per 1,000 feet of lateral in the Marcellus, which represents a 29% reduction from 2015 and in line with the fourth quarter of 2016.  In the Marcellus, average drilling days from spud to final rig release declined to 12 days in the first quarter of 2017, a 49% reduction from 2015 and an 18% reduction from 2016.  Antero is currently operating four drilling rigs and five completion crews in the Marcellus Shale. One notable Marcellus pad that was completed late in the fourth quarter of 2016 had 4 wells with an average lateral length of 10,017 feet, an average BTU content of 1227 and an average of 1,700 pounds of proppant per foot.  The average EUR for this pad is 2.4 Bcf/1,000 at the wellhead and 2.9 Bcfe/1,000' processed (ethane rejection).  This pad had an all-in development cost of $0.39 per Mcfe, driving attractive rates of return. Ohio Utica Shale — Antero did not complete and place on line any wells during the quarter while managing Utica development ahead of the anticipated Rover in service date.  However, the Company drilled an average of 2,757 feet per day in its laterals while drilling and casing 13 wells during the quarter.  Antero is currently operating three drilling rigs and one completion crew in the Utica Shale.  The Company has plans to move one of these rigs to the Marcellus Shale in the second quarter of 2017. Current average well costs are $1.01 million per 1,000 feet of lateral in the Utica, which represents a 26% reduction from 2015 and in line with the fourth quarter of 2016.  Drilling days from spud to final rig release averaged 18 days in the Utica in the first quarter of 2017. Commenting on the continued operational momentum and Antero's integrated business strategy, Paul Rady, Chairman and CEO said, "We continue to see increases in well productivity through the utilization of our advanced completion techniques while keeping drilling and completion costs down.  We have seen encouraging early results in the Marcellus with completions yielding wellhead EURs in the 2.0 to 2.4 Bcf/1,000' range.  Importantly, some of the early results are outside of our current high graded core areas and could lead to an extension of those areas.  The continued operational momentum compliments Antero's integrated business strategy which includes best quality rock, firm transport to favorable price indices, an industry leading hedge book, significant exposure to liquids pricing upside and value created by infrastructure buildout through our 59% ownership in Antero Midstream.  This high level of operational performance and integration gives us confidence in our ability to achieve our 2017 production growth guidance as well as our production growth targets through 2020." Antero Midstream results were released today and are available at www.anteromidstream.com. Low pressure gathering volumes for the first quarter of 2017 averaged 1,659 MMcf/d, a 26% increase from the first quarter of 2016 and a 9% increase sequentially.  Compression volumes for the first quarter of 2017 averaged 1,028 MMcf/d, a 68% increase from the first quarter of 2016 and a 12% increase sequentially. High pressure gathering volumes for the first quarter of 2017 averaged 1,581 MMcf/d, a 28% increase from the first quarter of 2016 and a 12% increase sequentially.  The increase in gathering and compression volumes was driven by production growth from Antero Resources in Antero Midstream's area of dedication.  Fresh water delivery volumes averaged 148 MBbl/d during the quarter, a 51% increase compared to the prior year quarter and a 1% decrease sequentially. For the three months ended March 31, 2017, the Partnership reported revenues of $175 million, comprised of $92 million from the Gathering and Processing segment and $83 million from the Water Handling and Treatment segment. Revenues increased 28% compared to the prior year quarter, primarily driven by growth in throughput volumes and fresh water delivery volumes. Water Handling and Treatment segment revenues include $33 million from produced water handling and high rate water transfer services provided to Antero Resources, which is billed at cost plus 3%. Direct operating expenses for the Gathering and Processing and Water Handling and Treatment segments were $8 million and $40 million, respectively, for a total of $48 million compared to $49 million in direct operating expenses in the prior year quarter. Water Handling and Treatment direct operating expenses include $32 million from produced water handling and high rate water transfer services.  General and administrative expenses including equity-based compensation were $14 million, a $1 million increase compared to the first quarter of 2016.  General and administrative expenses excluding equity-based compensation were $8 million during the first quarter of 2017, a 15% increase compared to the first quarter of 2016. The increase in general and administrative expenses was primarily driven by non-recurring expenses incurred from the processing and fractionation joint venture with MarkWest.  Total operating expenses were $93 million, including $28 million of depreciation and $4 million of accretion of contingent acquisition consideration. The Board of Directors of the general partner of the Partnership declared a cash distribution of $0.30 per unit ($1.20 per unit annualized) for the first quarter of 2017. The distribution represents a 28% increase compared to the prior year quarter and a 7% increase sequentially.  The distribution is the Partnership's ninth consecutive quarterly distribution increase since its initial public offering in November 2014 and will be paid on May 10, 2017 to unitholders of record as of May 3, 2017. As of March 31, 2017, Antero's consolidated net debt was $4.8 billion, of which $720 million were borrowings outstanding under the Company's and Antero Midstream's revolving credit facilities.  Total borrowing capacity under these two facilities is currently $5.5 billion.  Reduced for $710 million in letters of credit outstanding, the company had $4.1 billion in available consolidated liquidity as of March 31, 2017.  For a reconciliation of consolidated net debt to consolidated total debt, the most comparable GAAP measure, please read "Non-GAAP Financial Measures." Antero's drilling and completion costs for the three months ended March 31, 2017 were $307 million.  In addition, the Company invested $56 million for land and $50 million for proved property acquisitions.  Antero Midstream invested $67 million for gathering and compression systems, $37 million for water infrastructure projects, including $19 million on the Antero Clearwater Treatment Facility and $160 million in the recently announced processing and fractionation joint venture with MarkWest. Antero currently has hedged 3.3 Tcfe of future natural gas equivalent production using fixed price swaps covering the period from April 1, 2017 through December 31, 2023 at an average index price of $3.61 per MMBtu.  At March 31, 2017, the Company's estimated fair value of commodity derivative instruments was $2.0 billion. The following table summarizes Antero's hedge position as of March 31, 2017: A conference call is scheduled on Tuesday, May 9, 2017 at 9:00 am MT to discuss the results.  A brief Q&A session for security analysts will immediately follow the discussion of the results for the quarter.  To participate in the call, dial in at 888-347-8204 (U.S.), 855-669-9657 (Canada), or 412-902-4229 (International) and reference "Antero Resources". A telephone replay of the call will be available until Wednesday, May 17, 2017 at 9:00 am MT at 844-512-2921 (U.S.) or 412-317-6671 (International) using the passcode 10103993. A simultaneous webcast of the call may be accessed over the internet at www.anteroresources.com.  The webcast will be archived for replay on the Company's website until Wednesday, May 17, 2017 at 9:00 am MT. An updated presentation will be posted to the Company's website before the May 9, 2017 conference call.  The presentation can be found at www.anteroresources.com on the homepage.  Information on the Company's website does not constitute a portion of this press release. Revenue excluding unrealized hedge gains as set forth in this release represents total operating revenue adjusted for non-cash gains on unsettled hedges.  Antero believes that revenue excluding unrealized hedge gains is useful to investors in evaluating operational trends of the Company and its performance relative to other oil and gas producing companies.  Revenue excluding unrealized hedge gains is not a measure of financial performance under GAAP and should not be considered in isolation or as a substitute for total operating revenue as an indicator of financial performance.  The following table reconciles total operating revenue to revenue excluding unrealized hedge gains (in thousands): Adjusted net income as set forth in this release represents net income (loss), adjusted for certain items.  Antero believes that adjusted net income is useful to investors in evaluating operational trends of the Company and its performance relative to other oil and gas producing companies.  Adjusted net income is not a measure of financial performance under GAAP and should not be considered in isolation or as a substitute for net income (loss) as an indicator of financial performance.  The following table reconciles net income (loss) to adjusted net income (in thousands): Cash flow from operations before changes in working capital as presented in this release represents net cash provided by operating activities before changes in working capital items.  Cash flow from operations before changes in working capital is widely accepted by the investment community as a financial indicator of an oil and gas company's ability to generate cash to internally fund exploration and development activities and to service debt.  Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry.  In turn, many investors use this published research in making investment decisions.  Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered in isolation or as a substitute for cash flows from operating, investing, or financing activities, as an indicator of cash flows, or as a measure of liquidity. The following table reconciles net cash provided by operating activities to cash flow from operations before changes in working capital as used in this release (in thousands): The following table reconciles consolidated total debt to consolidated net debt as used in this release (in thousands): Adjusted EBITDAX is a non-GAAP financial measure that the Company defines as net income from continuing operations including noncontrolling interest after adjusting for those items shown in the table below.  Adjusted EBITDAX, as used and defined by the Company, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP.  Adjusted EBITDAX should not be considered in isolation or as a substitute for operating income, net income, cash flows from operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP.  Adjusted EBITDAX provides no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax position.  Adjusted EBITDAX does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital, income taxes, franchise taxes, exploration expenses, and other commitments and obligations.  However, Antero's management team believes adjusted EBITDAX is useful to an investor in evaluating the Company's financial performance because this measure: There are significant limitations to using adjusted EBITDAX as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect Antero's net income, the lack of comparability of results of operations of different companies and the different methods of calculating adjusted EBITDAX reported by different companies.  The following tables represent a reconciliation of the Company's net income from continuing operations including noncontrolling interest to adjusted EBITDAX, a reconciliation of adjusted EBITDAX to net cash provided by operating activities and a reconciliation of realized price before cash receipts for settled hedges to adjusted EBITDAX margin (in thousands except adjusted EBITDAX margin). Antero Resources is an independent natural gas and oil company engaged in the acquisition, development and production of unconventional liquids-rich natural gas properties located in the Appalachian Basin in West Virginia and Ohio. The Company's website is located at www.anteroresources.com. This release includes "forward-looking statements".  Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Antero's control. All statements, except for statements of historical fact, made in this release regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future production targets, completion of natural gas or natural gas liquids transportation projects, future earnings, future capital spending plans, improved and/or increasing capital efficiency, continued utilization of existing infrastructure, gas marketability, estimated realized natural gas and natural gas liquids prices, acreage quality, access to multiple gas markets, expected drilling and development plans, future financial position, future technical improvements and future marketing opportunities, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  All forward-looking statements speak only as of the date of this release. Although Antero believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Antero cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control, incident to the exploration for and development, production, gathering and sale of natural gas, NGLs and oil. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating natural gas and oil reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and the other risks described under the heading "Item 1A. Risk Factors" in Antero's Annual Report on Form 10-K for the year ended December 31, 2016. The following tables set forth selected operating data for the three months ended March 31, 2016 compared to the three months ended March 31, 2017: To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/antero-resources-reports-first-quarter-2017-financial-and-operational-results-300453490.html


News Article | May 8, 2017
Site: www.prnewswire.com

Distribution for the First Quarter of 2017 The Board of Directors of the general partner of the Partnership, declared a cash distribution of $0.30 per unit ($1.20 per unit annualized) for the first quarter of 2017. The distribution represents a 28% increase compared to the prior year quarter and a 7% increase sequentially.  The distribution is the Partnership's ninth consecutive quarterly distribution increase since its initial public offering in November 2014 and will be paid on May 10, 2017 to unitholders of record as of May 3, 2017.  Cash distributions to be paid on incentive distribution rights for the first quarter of 2017 totaled $12 million. Commenting on the outlook for Antero Midstream, Paul Rady, Chairman and CEO said, "Antero Midstream continues to build momentum in expanding its operations across the midstream value chain, further supported by Antero Resources' recently announced commitment to Sherwood Plants 10 and 11, which will be owned by the joint venture between Antero Midstream and MarkWest.  We continue to see significant opportunities for expansion in Appalachia both on our organic development program and opportunities that present themselves as a result of Antero Resources' leadership in NGL production and liquids-rich drilling inventory in Appalachia." Low pressure gathering volumes for the first quarter of 2017 averaged 1,659 MMcf/d, a 26% increase from the first quarter of 2016 and a 9% increase sequentially.  Compression volumes for the first quarter of 2017 averaged 1,028 MMcf/d, a 68% increase from the first quarter of 2016 and a 12% increase sequentially. High pressure gathering volumes for the first quarter of 2017 averaged 1,581 MMcf/d, a 28% increase from the first quarter of 2016 and a 12% increase sequentially.  The increase in gathering and compression volumes was driven by production growth from Antero Resources in Antero Midstream's area of dedication.  Fresh water delivery volumes averaged 148 MBbl/d during the quarter, a 51% increase compared to the prior year quarter and a 1% decrease sequentially. For the three months ended March 31, 2017, the Partnership reported revenues of $175 million, comprised of $92 million from the Gathering and Processing segment and $83 million from the Water Handling and Treatment segment. Revenues increased 28% compared to the prior year quarter, primarily driven by growth in throughput volumes and fresh water delivery volumes. Water Handling and Treatment segment revenues include $33 million from produced water handling and high rate water transfer services provided to Antero Resources, which is billed at cost plus 3%. Direct operating expenses for the Gathering and Processing and Water Handling and Treatment segments were $8 million and $40 million, respectively, for a total of $48 million compared to $49 million in direct operating expenses in the prior year quarter. Water Handling and Treatment direct operating expenses include $32 million from produced water handling and high rate water transfer services.  General and administrative expenses including equity-based compensation were $14 million, a $1 million increase compared to the first quarter of 2016.  General and administrative expenses excluding equity-based compensation were $8 million during the first quarter of 2017, a 15% increase compared to the first quarter of 2016. The increase in general and administrative expenses was primarily driven by non-recurring legal expenses incurred from the processing and fractionation joint venture. Total operating expenses were $93 million, including $28 million of depreciation and $4 million of accretion of contingent acquisition consideration. Net income for the first quarter of 2017 was $75 million, a 75% increase compared to the prior year quarter. Net income per limited partner unit was $0.35 per unit, a 52% increase compared to the prior year quarter. Adjusted EBITDA was $119 million, a 49% increase compared to the prior year quarter. The increase in net income and Adjusted EBITDA is primarily driven by increased throughput volumes and fresh water delivery volumes.  Adjusted EBITDA during the quarter did not include cash distributions from unconsolidated affiliates related to Stonewall Gathering LLC ("Stonewall") and the joint venture with MarkWest Energy Partners, L.P. ("MarkWest"), a wholly owned subsidiary of MPLX, due to the timing of the declaration of the distributions.  The Partnership estimates cash distributions from unconsolidated affiliates for the full year 2017 to be approximately $18 million to $22 million, consistent with previously provided 2017 guidance.  Cash interest paid, net of cash previously reserved for bond interest, was $9 million. Cash reserved for bond interest during the quarter was $2 million and cash reserved for payment of income tax withholding upon vesting of Antero Midstream equity-based compensation awards was $2 million. Maintenance capital expenditures during the quarter totaled $16 million and distributable cash flow was $91 million, resulting in a DCF coverage ratio of 1.4x. Commenting on Antero Midstream's quarterly results, Michael Kennedy, CFO of Antero Midstream said, "Antero Midstream continued to execute on its organically driven business plan in the first quarter of 2017, reporting a 49% year-over-year increase in adjusted EBITDA and peer-leading distribution growth of 28%. Importantly, the first quarter places Antero Midstream on track to achieve its previously provided 2017 adjusted EBITDA, distributable cash flow, distribution growth and coverage guidance." The following table reconciles net income to adjusted EBITDA and distributable cash flow as used in this release (in thousands): Gathering and Processing — During the first quarter, Antero Midstream added a total of 305 MMcf/d of compression capacity by placing in service two compressor stations in the Marcellus Shale.  Antero's current compression capacity is approximately 1.4 Bcf/d in the Marcellus and Utica combined and compression capacity was over 82% utilized on average in the first quarter. Additionally, Antero Midstream connected 21 wells to its Marcellus gathering system during the quarter.  Antero Resources is currently operating seven drilling rigs on Antero Midstream dedicated acreage. Water Handling and Treatment — Antero Midstream's Marcellus and Utica fresh water delivery systems serviced 34 well completions during the first quarter of 2017, a 13% increase from the first quarter of 2016 and 3% decrease sequentially.  Antero Resources is currently operating six completion crews on Antero Midstream dedicated acreage. During the quarter Antero Midstream continued construction on the Antero Clearwater Facility, which is expected to be placed into service in the fourth quarter of 2017. As of March 31, 2017, Antero Midstream had $200 million drawn on its $1.5 billion bank credit facility, resulting in approximately $1.3 billion in available credit facility capacity.  Antero Midstream's net debt to trailing twelve months adjusted EBITDA was 1.9x as of March 31, 2017.  For a reconciliation of consolidated net debt to consolidated total debt, the most comparable GAAP measure, please read "Non-GAAP Financial Measures." Capital expenditures, excluding investments in the processing and fractionation joint venture were $104 million in the first quarter of 2017 as compared to $86 million in the first quarter of 2016.  Capital invested in gathering systems and facilities was $67 million and capital invested in water handling and treatment assets was $37 million, including $19 million invested in the Antero Clearwater Facility. Capital invested in the MarkWest joint venture was $160 million during the quarter. Antero Midstream will hold a call on Tuesday, May 9, 2017 at 10:00 am MT to discuss the results.  A brief Q&A session for security analysts will immediately follow the discussion of the results for the quarter.  To participate in the call, dial in at 888-347-8204  (U.S.), 855-669-9657  (Canada), or 412-902-4229  (International) and reference "Antero Midstream".  A telephone replay of the call will be available until Wednesday, May 17, 2017 at 10:00 am MT at 844-512-2921 (U.S.) or 412-317-6671 (International) using the passcode 10103995. To access the live webcast and view the related earnings conference call presentation, visit Antero Midstream's website at www.anteromidstream.com.  The webcast will be archived for replay on the Partnership's website until Wednesday, May 17, 2017 at 10:00 am MT. An updated presentation will be posted to the Partnership's website before the May 9, 2017 conference call. The presentation can be found at www.anteromidstream.com on the homepage.  Information on the Partnership's website does not constitute a portion of this press release. Antero Midstream views Adjusted EBITDA as an important indicator of the Partnership's performance.  Antero Midstream defines Adjusted EBITDA as Net Income before interest expense, depreciation expense, accretion of contingent acquisition consideration, equity-based compensation expense, excluding equity in earnings of unconsolidated affiliates, and including cash distributions from unconsolidated affiliates. The Partnership defines Distributable Cash Flow as Adjusted EBITDA less interest paid, cash reserved for income tax withholding payments upon vesting of equity-based compensation awards, cash reserved for bond interest and ongoing maintenance capital expenditures paid.  Antero Midstream uses Distributable Cash Flow as a performance metric to compare the cash generating performance of the Partnership from period to period and to compare the cash generating performance for specific periods to the cash distributions (if any) that are expected to be paid to unitholders.  Distributable Cash Flow does not reflect changes in working capital balances. Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures.  The GAAP measure most directly comparable to Adjusted EBITDA and Distributable Cash Flow is Net Income.  The non-GAAP financial measures of Adjusted EBITDA and Distributable Cash Flow should not be considered as alternatives to the GAAP measure of Net Income.  Adjusted EBITDA and Distributable Cash Flow are not presentations made in accordance with GAAP and have important limitations as an analytical tool because they include some, but not all, items that affect Net Income and Adjusted EBITDA.  You should not consider Adjusted EBITDA and Distributable Cash Flow in isolation or as a substitute for analyses of results as reported under GAAP.  Antero Midstream's definition of Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of other partnerships. The following table reconciles consolidated total debt to consolidated net debt as used in this release (in thousands): The following table reconciles net income to adjusted EBITDA for the twelve months ended March 31, 2017 as used in this release (in thousands): Antero Midstream is a limited partnership that owns, operates and develops midstream gathering, compression, processing and fractionation assets located in West Virginia and Ohio, as well as integrated water assets that primarily service Antero Resources' properties located in West Virginia and Ohio. This release includes "forward-looking statements" within the meaning of federal securities laws.  Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Partnership's control.  All statements, other than historical facts included in this release, are forward-looking statements.  All forward-looking statements speak only as of the date of this release and are based upon a number of assumptions.  Although the Partnership believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that the assumptions underlying these forward-looking statements will be accurate or the plans, intentions or expectations expressed herein will be achieved.  For example, future acquisitions, dispositions or other strategic transactions may materially impact the forecasted or targeted results described in this release.  Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.  Nothing in this release is intended to constitute guidance with respect to Antero Resources. Antero Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond the Partnership's control, incident to the gathering and processing and fresh water and waste water treatment businesses.  These risks include, but are not limited to, Antero Resources' expected future growth, Antero Resources' ability to meet its drilling and development plan, commodity price volatility, ability to execute the Partnership's business strategy, competition and government regulations, actions taken by third-party producers, operators, processors and transporters, inflation, environmental risks, drilling and completion and other operating risks, regulatory changes, the uncertainty inherent in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and the other risks described under "Risk Factors" in Antero Midstream's Annual Report on Form 10-K for the year ended December 31, 2016. For more information, contact Michael Kennedy – CFO of Antero Midstream at (303) 357-6782 or mkennedy@anteroresources.com. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/antero-midstream-reports-first-quarter-2017-financial-and-operational-results-300453472.html


News Article | May 16, 2017
Site: www.prnewswire.com

Chisholm intends to pursue unconventional resource opportunities where it can leverage its horizontal drilling and completions expertise.  The Company is led by Chief Executive Officer Mark Whitley, who since 2014 had served as an advisor to Warburg Pincus.  Prior to this affiliation, Mr. Whitley had a long and successful career in the industry, most recently as Senior Vice President of the Southwest Division of Range Resources Corporation ("Range").  While at Range, he assembled a more than 100,000 net acre position in the Barnett Shale and subsequently led Range's initial efforts in both the liquids-rich and dry gas portions of the Marcellus Shale. Mr. Whitley is joined at Chisholm by a senior team with a strong track record of industry-leading operating performance.  This team includes industry veterans Mike Middlebrook, Chief Operating Officer; Aaron Gaydosik, Chief Financial Officer; Martin Emery, Senior Vice President – Geosciences; Andrew Tullis, Vice President – Engineering; Brad Grandstaff, Vice President – Operations; and Scott Herstein, Vice President – Business Development.  The team has deep operating experience in multiple unconventional plays across the United States, including the northern Delaware Basin. Mr. Whitley commented, "We are excited to be building a new enterprise focused on the Delaware Basin of New Mexico, where we continue to see many untapped and compelling opportunities.  We are pleased to have partnered with Warburg Pincus and to have their support behind our ongoing efforts." James R. Levy, Managing Director, Warburg Pincus, said, "Having known Mark for several years, we are highly confident in his and the entire Chisholm team's ability to create value through their considerable drilling and completions expertise.  We look forward to supporting them as they pursue their strategy." About Chisholm Energy Holdings, LLC Chisholm is a start-up oil and gas production company with operational headquarters in Fort Worth, Texas.  The Company is focused on pursuing unconventional resource opportunities in the northern Delaware Basin.  Chisholm is led by a seasoned team of oil and gas executives in partnership with Warburg Pincus, a global private equity firm with a 25-year track record of building businesses and creating value in the energy sector.  For more information, visit www.chisholmenergy.com. About Warburg Pincus Warburg Pincus LLC is a leading global private equity firm focused on growth investing.  The firm has more than $44 billion in private equity assets under management.  The firm's active portfolio of more than 140 companies is highly diversified by stage, sector and geography.  Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value.  Founded in 1966, Warburg Pincus has raised 16 private equity funds which have invested more than $60 billion in over 780 companies in more than 40 countries. For more than two decades, Warburg Pincus has invested or committed over $13 billion across more than 70 energy investments around the world involved in upstream, midstream and downstream oil and gas; energy services and technology; power generation and transmissions; alternative energy and renewables; and mining and metals.  Notable current and former oil and gas portfolio companies for which Warburg Pincus was a founding institutional investor include Antero Resources, Bill Barrett Corporation, Brigham Resources and Minerals, Broad Oak Energy, Encore Acquisition Company, Kosmos Energy, Laredo Petroleum, Newfield Exploration, Spinnaker Exploration and Targa Resources. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore.  For more information please visit www.warburgpincus.com. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/chisholm-energy-holdings-announces-acquisition-in-the-new-mexico-delaware-basin-300457880.html


DENVER, April 24, 2017 /PRNewswire/ -- Antero Resources (NYSE: AR) ("Antero" or the "Company") announced today that the Company plans to issue its first quarter 2017 earnings release on Monday, May 8, 2017 after the close of trading on the New York Stock Exchange. A conference call is scheduled on Tuesday, May 9, 2017 at 9:00 am MT to discuss the results.  A brief Q&A session for security analysts will immediately follow the discussion of the results for the quarter.  To participate in the call, dial in at 1-888-347-8204 (U.S.), 1-855-669-9657 (Canada), or 1-412-902-4229 (International) and reference "Antero Resources".  A telephone replay of the call will be available until Wednesday, May 17, 2017 at 9:00 am MT at 1-844-512-2921 (U.S.) or 1-412-317-6671 (International) using the passcode 10103993.


News Article | April 25, 2017
Site: www.forbes.com

Fort Worth natural gas producer Range Resources Corp. surprised Wall Street with its first quarter results last night, with Ebitdax (earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses) coming in 4% higher than analysts expected due to lower costs. By comparison, the company lost money in the same quarter of last year. While its natural gas production was in line with estimates, Range expects its second quarter production to be flat partially due to downtime at one of its processing facilities, which is being upgraded. However, it's keeping its outlook for this year the same with its $1.5 billion capital budget expected to boost its production by around 34%. Analysts at Seaport Global Securities Inc. think the stock is a buy, noting the company's production growth along with its capital efficiency, inventory of properties and upside associated with its Terryville natural gas complex in northern Louisiana (picked up as part of its $4.2 billion acquisition of Memorial Resource Development Corp. this past fall). Seaport has a stock price target of $41, a 50% bump-up from its recent $27.23. Range -- led by CEO Jeff Ventura -- has been beaten up in the market, with its stock down 16% so far this year and 30% over the last 12 months. The reason? Its focus on natural gas, which hasn't exactly been a hot commodity lately. It's been trading at around $3 per thousand cubic feet equivalent, versus around $5 three years ago and almost $14 in 2008. But with smart investors such as billionaire Jeffery Hildebrand of Hilcorp Energy picking up $3 billion worth of natural gas properties from ConocoPhillips recently, could the commodity be coming back into favor? As Ventura himself noted at the CERAWeek conference in March, increasing demand for the fuel could lead to shortages in the future, which would result in higher prices -- maybe in 10 years. "In my opinion, the futures price of natural gas is not capturing this," he said. Range also has been named as a potential takeover or merger candidate, most notably with the larger EQT Corp. but also with like-sized competitor Antero Resources Corp. Combining with either of these two companies could help it lower costs further. Analysts at Tudor, Pickering, Holt & Co. aren't as bullish on Range with a hold rating on the stock, noting the company's underwhelming production guidance for the second quarter. Raymond James, however, has an outperform rating on the stock, noting that its cash flow per share beat analyst expectations by 10%.


News Article | May 8, 2017
Site: www.prnewswire.com

"We are pleased to welcome the Choice team to Rubicon and believe this transaction will significantly enhance our participation in the multi-stage completions market, fueled by passionate people and one of the most exciting downhole completion product offerings in the industry," said Michael Reeves, President and Chief Executive Officer of Rubicon.  "The combination of best-in-class engineering, manufacturing and customer service capabilities from Rubicon and Choice will immediately enable our teams to offer higher value and more comprehensive completions solutions to customers." "Choice technology was born from listening to customers' pain points and applying practical innovation to create one of the most exciting frac plug and toe sleeve offerings in the market," said Jayme Sperring, Chief Commercial Officer of Rubicon.  "Today's announcement represents another important step in Rubicon's path to delivering an exceptional customer experience, offering value-driven products and a highly specialized team of professionals." "The Choice team has built something truly special and I am very excited by the opportunities this transaction will create for our employees and customers," said Wes Pixley, CEO of Choice.  "Rubicon's strong footprint, commitment to customer service and robust balance sheet will dramatically accelerate the growth of our business." Rubicon Oilfield International Holdings, L.P. designs, manufactures and sells/rents downhole oilfield products in every major market around the globe.  Rubicon was formed in 2015 and through the acquisition of leading downhole products businesses such as Tercel Oilfield Products, Top-Co Holdings and Logan International provides a broad suite of technology used throughout an oil and gas well's lifecycle. Headquartered in Houston, Texas with activity in over 50 countries and over 800 employees globally, Rubicon is fueled by strong commercial, manufacturing and engineering teams working closely together to deliver a world-class customer experience.  Rubicon is led by a seasoned team of oilfield service and equipment industry executives and is committed to building a best-in-class global enterprise in the oilfield products and equipment sector.  For more information, please visit www.rubicon-oilfield.com. Choice Completions Systems, LLC was established in 2016 as a technology business specializing in the design and deployment of differentiated frac plug and toe sleeve products to enhance unconventional multi-stage completion operations.  Based in Houston, TX, Choice Completions Systems uses modern engineering to deliver technologies intended to solve customers' challenges in complex completion applications.  Their management, engineers and technicians have extensive experience in downhole completion products and services and an intense focus on customer service. Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $44 billion in private equity assets under management. The firm's active portfolio of more than 140 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 16 private equity funds, which have invested more than $60 billion in over 780 companies in more than 40 countries. For more than two decades, Warburg Pincus has invested or committed over $13 billion across more than 75 energy investments around the world with a focus on upstream, midstream and downstream oil and gas; energy services and technology; power generation and transmission; alternative energy and renewables; and mining and metals. Notable investments include Antero Resources, Bill Barrett Corporation, Broad Oak Energy, Encore Acquisition Company, Kosmos Energy, Laredo Petroleum, MEG Energy, Newfield Exploration, Spinnaker Exploration and Targa Resources. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore. For more information please visit www.warburgpincus.com. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/rubicon-oilfield-international-acquires-choice-completions-systems-300452751.html


WGL Holdings, Inc. (NYSE: WGL), the parent company of Washington Gas Light Company (Washington Gas) and other energy-related subsidiaries, today reported net income applicable to common stock determined in accordance with generally accepted accounting principles in the United States of America (GAAP) for the three months ended March 31, 2017, of $123.1 million, or $2.39 per share, an improvement of $16.8 million, or $0.28 per share, over net income applicable to common stock of $106.3 million, or $2.11 per share, reported for the three months ended March 31, 2016. For the six months ended March 31, 2017, net income applicable to common stock was $181.0 million, or $3.52 per share, an improvement of $6.5 million, or $0.04 per share, over net income applicable to common stock of $174.5 million, or $3.48 per share for the same period of the prior fiscal year. On a consolidated basis, WGL also uses non-GAAP operating earnings (loss) to evaluate overall financial performance, and evaluates segment financial performance based on earnings before interest and taxes (EBIT) and adjusted EBIT. Operating earnings (loss) and adjusted EBIT are non-GAAP financial measures, which are not recognized in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. Both non-GAAP operating earnings (loss) and adjusted EBIT adjust for the accounting recognition of certain transactions that are not representative of the ongoing earnings of the company. Additionally, we believe that adjusted EBIT enhances the ability to evaluate segment performance because it excludes interest and income tax expense, which are affected by corporate-wide strategies such as capital financing and tax sharing allocations. Refer to “Reconciliation of Non-GAAP Financial Measures,” attached to this news release, for a more detailed discussion of management’s use of these measures and for reconciliations to GAAP financial measures. For the three months ended March 31, 2017, operating earnings were $96.1 million, or $1.87 per share, an increase of $6.6 million, or $0.09 per share, over operating earnings of $89.5 million, or $1.78 per share, for the same quarter of the prior fiscal year. For the six months ended March 31, 2017, operating earnings were $155.4 million, or $3.02 per share, an improvement of $6.7 million, or $0.06 per share, over operating earnings of $148.7 million, or $2.96 per share, for the same period of the prior fiscal year. For the three and six months ended March 31, 2017, the EBIT comparisons reflect higher unrealized margins associated with our asset optimization program, partially offset by unfavorable effects of warmer than normal weather in the District of Columbia. Additionally, for the three months ended March 31, 2017, the comparisons of EBIT and adjusted EBIT reflect new base rates in Virginia and increased customer growth, more than offset by: (i) lower realized margins associated with our asset optimization program; (ii) higher depreciation and amortization expense related to our new billing system as well as the growth in our utility plant; and (iii) higher operation and maintenance expenses. For the six months ended March 31, 2017, the comparisons in EBIT and adjusted EBIT primarily reflect: (i) new base rates in Virginia and (ii) increased customer growth. These favorable variances were partially offset by higher depreciation and amortization expense and higher operation and maintenance expenses. For the three months ended March 31, 2017, the comparisons in EBIT and adjusted EBIT reflect higher realized natural gas margins primarily due to higher margins on storage-sourced sales, when compared to the same period in the prior fiscal year. Favorable natural gas margins were partially offset by slightly lower electricity margins due to lower sales volumes and average unit margins. For the six months ended March 31, 2017, the comparisons in EBIT and adjusted EBIT reflect higher natural gas margins due to higher margins on storage-sourced sales, partially offset by unfavorable weather and price conditions as well as lower portfolio optimization activities early in the winter. In addition, electricity margins were higher due to lower capacity charges from the regional power grid operator (PJM) associated with fixed-price retail contracts. Additionally, for the three and six months ended March 31, 2017, the EBIT comparisons reflect higher unrealized mark-to-market valuations on energy-related derivatives. For the three and six months ended March 31, 2017, improvements in EBIT and adjusted EBIT reflect: (i) the growth in distributed generation assets in service, including increased solar renewable energy credit sales and (ii) higher earnings from alternative energy investments, including tax equity ventures. These improvements were partially offset by lower revenues from the energy-efficiency contracting business due to the completion of certain projects and higher depreciation expenses related to new projects placed in service. For the three months ended March 31, 2017, the increase in EBIT primarily reflects: (i) increased valuations on our derivative contracts associated with our long-term transportation strategies; (ii) higher valuations and realized margins related to storage inventory and the associated economic hedging transactions and (iii) higher income related to our pipeline investments. For the six months ended March 31, 2017, the decrease in EBIT primarily reflects: (i) lower valuations on our derivative contracts associated with our long-term transportation strategies; (ii) lower valuations and realized margins related to storage inventory and the associated economic hedging transactions; and (iii) lower realized margins on our transportation strategies. For the three months ended March 31, 2017, the increase in adjusted EBIT is primarily due to higher realized margins on our transportation strategies, as well as higher income related to our pipeline investments. The comparison of adjusted EBIT for the six months ended March 31, 2017, primarily reflects lower income related to unfavorable storage spreads when compared to the same period in the prior fiscal year as well as lower realized margins on our transportation strategies. Lower realized margins on our transportation strategies are primarily a result of losses associated with certain gas purchases from Antero Resources Corporation (Antero) beginning in January 2016. The index price used to invoice these purchases had been the subject of an arbitration proceeding which WGL expected to result in a favorable outcome; therefore, the unfavorable impacts of these purchases had been removed from previously reported adjusted EBIT. In February 2017, the arbitral tribunal ruled in favor of Antero, and as a result, both operating earnings and adjusted EBIT for prior periods have been recast, as appropriate, to reflect the impact of these losses. Losses realized during the three and six months ending March 31, 2017, were $0.5 million and $7.3 million, respectively, associated with this purchase contract. Losses for both the three and six months ending March 31, 2016 were $3.8 million. Accumulated losses from the inception of the contract are $22.5 million. In March 2017, we filed suit in state court in Colorado related to the delivery point to which the gas is being delivered by Antero. To date, no rulings have been obtained from the Court. For the three and six months ended March 31, 2017, the decrease in EBIT primarily relates to external costs associated with the planned merger with AltaGas. We provide earnings guidance for consolidated non-GAAP operating earnings. In providing fiscal year 2017 guidance, we note that there will likely be differences between our reported GAAP earnings and our non-GAAP operating earnings due to matters such as, but not limited to, unrealized mark-to-market positions for our energy-related derivatives and changes in the measured value of our trading inventory for WGL Midstream. On a year-to-date basis, non-GAAP operating earnings are lower than GAAP earnings due to $25.6 million of after-tax non-GAAP adjustments. Non-GAAP adjustments could change significantly and are subject to swings from period to period. As a result, WGL management is not able to reasonably estimate the aggregate impact of these items to derive GAAP earnings guidance and therefore is not able to provide a corresponding GAAP equivalent for its non-GAAP operating earnings guidance. We are updating our consolidated non-GAAP operating earnings estimate for fiscal year 2017 in a range of $3.10 per share to $3.30 per share. We are lowering guidance as a result of losses associated with the index price used in certain gas purchases from Antero, as well as lower expected results at the regulated utility related to asset optimization and other revenues. We assume no obligation to update this guidance. The absence of any statement by us in the future should not be presumed to represent an affirmation of this earnings guidance. During the pendency period of the acquisition agreement between WGL and AltaGas, WGL will not conduct earnings calls. Additional information regarding financial results and recent regulatory events can be found in WGL's and Washington Gas' Form 10-Q for the quarter ended March 31, 2017, as filed with the Securities and Exchange Commission, and which is also available at www.wglholdings.com. WGL, headquartered in Washington, D.C., is a leading source for clean, efficient and diverse energy solutions. With activities and assets across the U.S., WGL consists of Washington Gas, WGL Energy, WGL Midstream and Hampshire Gas. WGL provides natural gas, electricity, green power and energy services, including generation, storage, transportation, distribution, supply and efficiency. Our calling as a company is to make energy surprisingly easy for our employees, our community and all our customers. Whether you are a homeowner or renter, small business or multinational corporation, state and local or federal agency, WGL is here to provide Energy Answers. Ask Us. For more information, visit us at www.wgl.com. Unless otherwise noted, earnings per share amounts are presented on a diluted basis, and are based on weighted average common and common equivalent shares outstanding. Please see the attached comparative statements for additional information on our operating results. Also attached to this news release are reconciliations of non-GAAP financial measures. This communication may be deemed to be solicitation material in respect of the proposed merger transaction. WGL Holdings, Inc. (“WGL”) filed a definitive proxy statement in connection with the proposed merger transaction with the U.S. Securities and Exchange Commission (the “SEC”) on March 31, 2017 (the “Proxy Statement”) and first mailed the Proxy Statement to its shareholders on or about April 3, 2017. THE INVESTORS AND SECURITY HOLDERS OF WGL ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION about AltaGas, Ltd. (“AltaGas”), WGL and the proposed merger transaction. Investors and security holders are able to obtain these materials and other documents filed with the SEC free of charge at the SEC’s website, www.sec.gov. In addition, a copy of WGL’s proxy statement may be obtained free of charge upon request by contacting WGL Holdings, Inc., Leslie T. Thornton, Corporate Secretary, 101 Constitution Avenue N.W., Washington, District of Columbia, 20080. WGL’s filings with the SEC are also available on WGL’s website at: http://wglholdings.com/sec.cfm. Investors and security holders may also read and copy any reports, statements and other information filed by WGL with the SEC, at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 or visit the SEC’s website for further information on its public reference room. AltaGas, WGL and certain of their respective directors, executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed merger transaction. Information regarding AltaGas’ directors and executive officers is available in AltaGas’ Management Information Circular, filed on March 24, 2017 (in English and French) with the Canadian Securities Administrators (the “CSA”) and in AltaGas’ Annual Information Form, filed on February 23, 2017 (in English) and February 27, 2017 (in French) with the CSA, each of which are available at: www.sedar.com. Information regarding WGL’s directors and executive officers is available in the Proxy Statement. WGL’s proxy statement filed with the SEC on December 23, 2016 in connection with its 2017 annual meeting of shareholders, and its Annual Report on Form 10-K for the fiscal year ended September 30, 2016, each of which may be obtained from the sources indicated in Additional Information and Where to Find It. Other information regarding persons who may be deemed participants in the proxy solicitation and a description of their direct and indirect interests (which may be different than those of WGL’s investors and security holders), by security holdings or otherwise, will be contained in the proxy statement and other relevant materials filed or to be filed with the SEC when they become available. This news release and other statements by us include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the outlook for earnings, revenues, dividends and other future financial business performance, strategies, legal developments relating to the Constitution Pipeline, AltaGas Ltd.’s proposed acquisition of us and other expectations. Forward-looking statements are typically identified by words such as, but not limited to, “estimates,” “expects,” “anticipates,” “intends,” “believes,” “plans,” and similar expressions, or future or conditional verbs such as “will,” “should,” “would,” and “could.” Although we believe such forward-looking statements are based on reasonable assumptions, we cannot give assurance that every objective will be achieved. Forward-looking statements speak only as of today, and we assume no duty to update them. Factors that could cause actual results to differ materially from those expressed or implied include, but are not limited to, general economic conditions, the closing of the AltaGas transaction may not occur or may be delayed; our stockholders may not approve the AltaGas transaction; litigation related to the AltaGas transaction or limitations or restrictions imposed by regulatory authorities may delay or negatively impact the transaction and there may be a loss of customers, employees or business partners as a result of the transaction and the factors discussed under the “Risk Factors” heading in our most recent annual report on Form 10-K and other documents that we have filed with, or furnished to, the U.S. Securities and Exchange Commission. The tables below reconcile operating earnings (loss) on a consolidated basis to GAAP net income (loss) applicable to common stock and adjusted EBIT on a segment basis to EBIT. Management believes that operating earnings (loss) and adjusted EBIT provide a meaningful representation of our earnings from ongoing operations on a consolidated and segment basis, respectively. These measures facilitate analysis by providing consistent and comparable measures to help management, investors and analysts better understand and evaluate our operating results and performance trends, and assist in analyzing period-to-period comparisons. Additionally, we use these non-GAAP measures to report to the board of directors and to evaluate management’s performance. To derive our non-GAAP measures, we adjust for the accounting recognition of certain transactions (non-GAAP adjustments) based on at least one of the following criteria: There are limits in using operating earnings (loss) and adjusted EBIT to analyze our consolidated and segment results, respectively, as they are not prepared in accordance with GAAP and may be different than non-GAAP financial measures used by other companies. In addition, using operating earnings (loss) and adjusted EBIT to analyze our results may have limited value as they exclude certain items that may have a material impact on our reported financial results. We compensate for these limitations by providing investors with the attached reconciliations to the most directly comparable GAAP financial measures. The following tables represent the reconciliation of non-GAAP operating earnings to GAAP net income applicable to common stock (consolidated by quarter):


Last Friday at the close, shares in Houston, Texas headquartered Atwood Oceanics Inc. ended 9.24% higher at $7.92. The stock recorded a trading volume of 4.40 million shares, which was above its three months average volume of 3.34 million shares. The Company's shares are trading below their 50-day moving average by 12.09%. Furthermore, shares of Atwood Oceanics, which engages in the drilling and completion of exploratory and developmental oil and gas wells, have a Relative Strength Index (RSI) of 45.38. On April 18th, 2017, Atwood Oceanics announced that it will release Q2 FY17 earnings after the market closes on Monday, May 08th, 2017. The Company will hold its conference call and webcast to discuss its Q2 FY17 earnings release on Tuesday, May 09th, 2017, at 10:00 a.m. EDT. Sign up and read the free research report on ATW at: Houston, Texas headquartered Patterson-UTI Energy Inc.'s stock finished Friday's session 5.22% higher at $21.77. A total volume of 5.06 million shares was traded, which was above their three months average volume of 4.16 million shares. The Company's shares are trading below their 200-day moving average by 9.13%. Additionally, shares of Patterson-UTI Energy, which through its subsidiaries, provides onshore contract drilling services to major and independent oil and natural gas operators in the US and Canada, have an RSI of 39.66. On April 28th, 2017, research firm Morgan Stanley resumed its 'Overweight' rating on the Company's stock. On May 03rd, 2017, Patterson-UTI Energy reported that for the month of April 2017, the Company had an average of 115 drilling rigs operating in the US and two rigs in Canada. Average drilling rigs operating reported in the Company's monthly announcements represent the average number of its drilling rigs that were operating under a drilling contract. The complimentary research report on PTEN can be downloaded at: Shares in Denver, Colorado headquartered Antero Resources Corp. ended the session 4.17% higher at $21.25 with a total trading volume of 2.96 million shares. The stock is trading below its 50-day moving average by 7.12%. Shares of the Company, which acquires, explores, produces, and develops natural gas, natural gas liquids, and oil properties in the US, have an RSI of 40.79. On April 24th, 2017, Antero Resources announced that it plans to issue its Q1 2017 earnings release on Monday, May 08th, 2017, after the close of trading on the NYSE. A conference call is scheduled on Tuesday, May 09th, 2017, at 9:00 a.m. MT to discuss the results. A brief Q&A session for security analysts will immediately follow the discussion of the results for the quarter. Register for free on Stock-Callers.com and access the latest report on AR at: Houston, Texas-based Ocean Rig UDW LLC's shares recorded a trading volume of 917,375 shares, and finished 1.97% lower at $0.22. The stock is trading 52.64% below its 50-day moving average. Shares of the Company, which operates as a subsidiary of Ocean Rig UDW Inc., have an RSI of 36.97. On April 24th, 2017, Ocean Rig UDW announced the results of its 2017 Annual General Meeting of Shareholders ("Meeting"). Among the approved proposals were the election of Mr. George Economou and Mr. Michael Pearson to serve as Class A Directors until the 2020 Meeting of the Company, and the appointment of Ernst & Young (Hellas) Certified Auditors Accountants S.A. as the Company's independent auditors for the fiscal year ending December 31st, 2017. Get free access to your research report on ORIG at: Stock Callers (SC) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. SC has two distinct and independent departments. 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News Article | May 3, 2017
Site: www.prnewswire.com

Morgan Stanley, Barclays and J.P. Morgan have acted as joint book-running managers for the offering. Baird, Citigroup, Goldman Sachs & Co. LLC and Wells Fargo Securities have acted as book-running managers. In connection with the offering, Antero Resources Midstream Management LLC ("ARMM") will be converted into a Delaware limited partnership, and, in connection with such conversion, will change its name to Antero Midstream GP LP.  ARMM has filed a registration statement relating to these securities with the U.S. Securities and Exchange Commission (the "SEC"), which has been declared effective. The offering of these securities is being made only by means of a written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.  A copy of the prospectus for the offering may be obtained, when available, from: A copy of the prospectus may be obtained free of charge by visiting the SEC's website at www.sec.gov. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Antero Midstream GP LP will be a Delaware limited partnership that, following the completion of the offering, will own the general partner of Antero Midstream and incentive distribution rights in Antero Midstream. This release includes "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond AMGPs control. All statements, other than historical facts, included in this release are forward-looking statements. All forward-looking statements speak only as of the date of this release and are based upon a number of assumptions. Although AMGP believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that the assumptions underlying these forward-looking statements will be accurate or the plans, intentions or expectations expressed herein will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Nothing in this release is intended to constitute guidance with respect to Antero Midstream. AMGP cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond AMGP's and Antero Midstream's control, incident to Antero Midstream's business. These risks include, but are not limited to, commodity price volatility, inflation, environmental risks, drilling and completion and other operating risks, regulatory changes, the uncertainty inherent in projecting future rates of production, cash flow and access to capital and the timing of development expenditures. For more information, contact Michael Kennedy – CFO of Antero Midstream GP LP at (303) 357-6782 or mkennedy@anteroresources.com. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/antero-midstream-gp-lp-announces-pricing-of-initial-public-offering-300451168.html

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