HOUSTON, March 13, 2020 (GLOBE NEWSWIRE) — Sanchez Midstream Partners LP (NYSE American: SNMP) (“SNMP” or the “Partnership”) today reported fourth-quarter and full year 2019 results. Highlights from the report include:
Fourth-quarter 2019 net loss of $47.8 million, compared to a net loss of $6.8 million for third-quarter 2019 and net income of $15.6 million for fourth-quarter 2018;Fourth-quarter 2019 Adjusted EBITDA (a non-GAAP financial measure) of approximately $12.2 million, compared to Adjusted EBITDA of $17.4 million for third-quarter 2019 and approximately $14.9 million for fourth-quarter 2018; andThe Partnership has reduced debt by $36.0 million (20 percent) since Dec. 31, 2018.FINANCIAL RESULTSThe Partnership’s fourth-quarter 2019 revenues totaled approximately $16.4 million, of which $14.4 million came from the midstream activities of Western Catarina Midstream and the Seco Pipeline. The balance of the Partnership’s fourth-quarter 2019 revenues came from production activities (approximately $3.7 million, which includes a gain on hedge settlements of $0.2 million) and a loss on mark-to-market activities ($1.7 million), which is a non-cash item.The Partnership’s full-year 2019 revenues totaled $76.6 million, of which $65.9 million came from the midstream activities of Western Catarina Midstream and the Seco Pipeline. The balance of the Partnership’s full-year 2019 revenues came from production activities ($15.4 million, which includes a gain on hedge settlements of $0.9 million) and a loss on mark-to-market activities (approximately $4.7 million), which is a non-cash item.The activities of Carnero G&P LLC (the “Carnero JV”) contributed a loss of approximately $0.2 million for fourth-quarter 2019 and income of $2.8 million for full-year 2019. The Partnership received a cash distribution of $1.6 million from the Carnero JV in February 2020 related to fourth-quarter 2019 activity, resulting in total cash distributions from midstream joint ventures of approximately $14.2 million for full-year 2019.On a GAAP basis, the Partnership reported a net loss of $47.8 million for fourth-quarter 2019, compared to a net loss of $6.8 million for third-quarter 2019 and net income of $15.6 million for fourth-quarter 2018. The Partnership reported a net loss of $51.1 million for full-year 2019, compared to net income of approximately $15.7 million for full-year 2018.Adjusted EBITDA was approximately $12.2 million for fourth-quarter 2019, compared to Adjusted EBITDA of $17.4 million for third-quarter 2019 and approximately $14.9 million for fourth-quarter 2018. The Partnership’s full-year 2019 Adjusted EBITDA was approximately $65.7 million, which is more than five percent lower when compared to Adjusted EBITDA of approximately $69.4 million for full-year 2018.Adjusted EBITDA is a non-GAAP financial measure that is defined below and reconciled in a table included with this press release.LIQUIDITY AND CREDIT FACILITY UPDATEThe Partnership had approximately $5.1 million in cash and cash equivalents as of Dec. 31, 2019.As of Dec. 31, 2019, the Partnership had $150.0 million in debt outstanding under its credit facility, which has a current borrowing base of $235.5 million and a revolving commitment amount of $20.0 million. The Partnership has made principal payments totaling $6 million since Dec. 31, 2019, resulting in $144.0 million in debt outstanding under the credit facility as of March 13, 2020. Since Dec. 31, 2018, the Partnership has reduced its debt outstanding by $36.0 million (20 percent), from $180.0 million to $144.0 million.COMMON UNITSThe Partnership had 19,975,193 common units issued and outstanding as of March 13, 2020.CLASS C DISTRIBUTIONAs required by the Third Amended and Restated Agreement of Limited Partnership of the Partnership, if a quarterly distribution on the Partnership’s Class C Preferred Units cannot be paid in cash, it must be paid 100 percent in Class C Preferred PIK Units. Accordingly, on Feb. 13, 2020, the Partnership declared a fourth-quarter 2019 distribution to the holders of its Class C Preferred Units consisting of 1,039,314 Class C Preferred PIK Units which was paid on Feb. 28, 2020 to holders of record on Feb. 20, 2020.ABOUT THE PARTNERSHIPSanchez Midstream Partners LP (NYSE American: SNMP) is a growth-oriented publicly-traded limited partnership focused on the acquisition, development, ownership and operation of midstream and other energy-related assets in North America. The Partnership has ownership stakes in oil and natural gas gathering systems, natural gas pipelines and natural gas processing facilities, all located in the Western Eagle Ford in South Texas.ADDITIONAL INFORMATIONAdditional information about SNMP can be found in our documents on file with the SEC which are available on our website at www.sanchezmidstream.com and on the SEC’s website at www.sec.gov.UNITHOLDER ACCESS TO 2019 10-KThe Partnership has filed its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019 (“Form 10-K”) with the SEC. A copy of the Form 10-K, which includes the Partnership’s complete audited financial statements, may be found on the SEC’s website at www.sec.gov and on the Partnership’s website at www.sanchezmidstream.com by selecting the “Investors” tab and then selecting “SEC Filings” from the dropdown menu. The Partnership will provide any unitholder with a hard copy of its Form 10-K, which includes SNMP’s complete audited financial statements, free of charge at any time upon request. Requests can be directed in writing to SNMP Investor Relations, 1000 Main Street, Suite 3000, Houston, TX 77002 or by email to ir@sanchezmidstream.com.
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