American Midstream Partners (AMID) Sees FY14 adj.-EBITDA at Lower-End of Outlook

American Midstream Partners (NYSE: AMID) announced a quarterly distribution and preliminary expectations for 2014 financial performance.

The Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.4725 per common unit, or $1.89 per unit on an annualized basis. The fourth quarter 2014 distribution is unchanged compared to the distribution for the third quarter 2014 and represents an increase of $0.02 per unit, or 4.4 percent, compared to the distribution for the fourth quarter 2013. Distributions for full-year 2014 increased approximately 6 percent compared to full-year 2013.

The distribution will be paid February 13, 2015, to unitholders of record as of the close of business February 6, 2015, together with the general partner of American Midstream Partners, LP. The ex-dividend date is February 4, 2015.

The Partnership expects 2014 Adjusted EBITDA to be at the low end of the Partnership’s guidance range of $46 million to $48 million. As previously announced, the distribution coverage ratio for the fourth quarter and full-year 2014 is expected to be approximately 1.2 and approximately 1.0, respectively.

As a result of the commodity price environment, the Partnership is evaluating the magnitude and timing of future quarterly and annual distribution increases. Importantly, the Partnership anticipates maintaining the current distribution level through 2015, including the impact of the recent decreases in commodity prices.

“We successfully executed our growth strategy in 2014, including the acquisition and continued expansion of the Lavaca system in the Eagle Ford, as well as the acquisitions of Main Pass Oil Gathering and Costar Midstream,” said Steve Bergstrom, Executive Chairman, President, and Chief Executive Officer. “We announced in October our intention to increase the fourth quarter distribution as a result of the Costar acquisition. However, we elected to maintain our current distribution given recent volatility in commodity prices. We are evaluating the impact of commodity price changes to our 2015 guidance and will provide updated 2015 guidance, as well as updates on growth projects and acquisitions from our general partner, in our fourth quarter earnings press release. It is important to note that we expect to sustain our current quarterly distribution in 2015 in the current commodity price environment. In addition, ArcLight Capital Partners, which controls our general partner, remains strongly supportive of American Midstream, and we remain confident in our ability to continue executing a long-term growth strategy through a combination of organic growth projects as well as third-party and drop-down acquisitions. Looking forward, we will continue to operate prudently while remaining committed to providing long-term, sustainable distribution growth.”

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