2013-01-03 00:28:48 -
DENVER, CO -January 2, 2013- American Midstream Partners, LP (NYSE: AMID)
provided today an update regarding certain items that affected the fourth
quarter 2012, including the impact of Hurricane Isaac and the turnaround of the
Bazor Ridge processing plant, among other items as more fully described below.
"We had several exciting developments in the fourth quarter, including the
completion of the initial gathering system for Silver Oak in the Woodbine as
well as significant progress on other commercial opportunities that we hope to
announce soon," stated Brian Bierbach, President and Chief Executive Officer.
"We also had several events during the fourth quarter, mostly one-time and
short-term in nature, that will negatively affect our financial results for the
quarter. These items are mostly behind us, and we remain enthusiastic about our
of expansion opportunities as we head into 2013."
The items impacting the fourth quarter of 2012 include:
* As previously disclosed, the financial impact of Hurricane Isaac is expected
to exceed $2 million, of which approximately $1 million was incurred in the
third quarter 2012 and the balance incurred in the fourth quarter. A
portion of this amount related to foregone cash flows resulting from
production curtailments immediately following the hurricane, and the
remainder resulted from costs incurred to repair the damaged assets. The
Partnership is insured for named windstorms on the affected assets after a
$1 million deductible.
* As previously disclosed, the Partnership completed a scheduled turnaround of
its Bazor Ridge processing plant in eastern Mississippi. The turnaround
took longer than anticipated as a result of unscheduled repairs and upgrades
that slowed the turnaround process but are expected to deliver long-term,
improved efficiencies at the plant. The Partnership estimates the financial
impact of the turnaround in the fourth quarter was approximately $1
* As previously disclosed, the Partnership saw a decline in volumes on one of
its offshore pipeline systems during the third and fourth quarters as a
result of a producer completing work on one of its platforms. The
Partnership continues to work with this producer to return volumes to
historical levels, although the contract terms may change for a portion of
the volumes going forward and a change in contract terms may have a material
negative impact on financial results. While the Partnership expects the
volumes to return to recent historical levels during the first quarter of
2013, the reduced volumes during the fourth quarter of 2012 resulted in an
estimated financial impact of approximately $1 million.
* During the fourth quarter, the Partnership executed a separation agreement
with a former officer of the Partnership that resulted in a one-time charge
of approximately $0.5 million.
Also during the fourth quarter, the Partnership obtained a waiver of the
leverage covenant on its $200 million credit facility for the quarter ended
December 31, 2012.
About American Midstream Partners
Denver-based American Midstream Partners, LP is a growth-oriented limited
partnership formed to own, operate, develop and acquire a diversified portfolio
of natural gas midstream energy assets. The company provides midstream services
in the Gulf Coast and Southeast regions of the United States. For more
information about American Midstream Partners, LP visit
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Source: American Midstream Partners, LP via Thomson Reuters ONE