Rattler Midstream LP (NASDAQ: RTLR) (“Rattler” or the “Company”), a
subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG)
(“Diamondback”), today announced financial and operating results
for the first quarter ended March 31, 2022.
FIRST QUARTER 2022 HIGHLIGHTS
- Q1 2022 consolidated net income
(including non-controlling interest) of $37.1 million
- Q1 2022 consolidated Adjusted
EBITDA (as defined and reconciled below) of $87.0 million
- Q1 2022 cash flow provided by
operating activities of $59.9 million
- Q1 2022 cash operated capital
expenditures of $17.9 million
- Q1 2022 consolidated Free Cash Flow
(as defined and reconciled below) of $44.9 million
- Board of Directors of Rattler's
general partner approved a cash distribution for the first quarter
of 2022 of $0.30 per common unit ($1.20 annualized); implies an
8.9% annualized yield based on the May 2, 2022 closing unit price
of $13.50
- In January 2022, Rattler acquired a
10% equity interest in BANGL, a long-haul NGL pipeline joint
venture, for $22.2 million
- Q1 2022 average produced water
gathering and disposal volumes of 846 MBbl/d
- Q1 2022 average sourced water
volumes of 388 MBbl/d; 39% of total sourced water volumes in Q1
2022 sourced from recycled produced water
- Q1 2022 average crude oil gathering
volumes of 78 MBbl/d
“Rattler continued its strong execution in the
first quarter of 2022. The effect of the series of transactions in
the last couple of quarters as well as continued focus on
operational cost resulted in sequential Adjusted EBITDA 8% greater
than Q4 2021. With greater exposure to Diamondback development
activity after the drop-down transaction in Q4 2021, this quarter's
results have set a new baseline for the operated business which
should benefit from stability of a fixed fee business and a flat
production plan from its primary customer,” stated Travis Stice,
Chief Executive Officer of Rattler’s general partner.
Mr. Stice continued, “On the non-operated side,
Rattler joined the BANGL joint venture and with the full start up
of the Wink to Webster joint venture, all six of Rattler's equity
method joint venture projects have entered full service. These
large intra-basin gathering systems and long-haul pipelines will
benefit from the expected growth of the Permian Basin for years to
come. Taken together with the operated business whose capital
expenditures are set to decline significantly after this year, the
free cash flow outlook of the operated and non-operated business of
Rattler is bright. With Rattler's stated priority of returning
capital to unitholders, Rattler looks forward to utilizing this
growing free cash flow to support the distribution and repurchase
program as market conditions warrant.”
OPERATIONS AND FINANCIAL
UPDATE
During the first quarter of 2022, the Company
recorded total operating income of $39.1 million, a decrease of 17%
compared to the fourth quarter of 2021. During the first quarter of
2022, the Company recorded consolidated net income (including
non-controlling interest) of $37.1 million, a decrease of 17% from
the fourth quarter of 2021. First quarter 2022 Adjusted EBITDA
(including non-controlling interest and as defined and reconciled
below) was $87.0 million, an increase of 8% from the fourth quarter
of 2021.
First quarter operated capital expenditures
totaled $17.9 million and aggregate contributions to equity method
joint ventures were $29.1 million. Rattler also received proceeds
of $7.6 million in distributions from equity method investments
related to operations during the quarter.
The following table summarizes the Company's throughput(a) on
its operated assets.
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
Crude oil gathering
(Bbl/d) |
77,989 |
|
85,210 |
Natural gas gathering
(MMBtu/d) |
— |
|
130,437 |
Produced water gathering and
disposal (Bbl/d) |
845,835 |
|
765,588 |
Sourced water gathering
(Bbl/d) |
387,542 |
|
267,834 |
(a) Does not include any volumes from our equity method
investment joint ventures.
CASH DISTRIBUTION
On April 27, 2022, the Board of Directors of
Rattler's general partner approved a cash distribution for the
first quarter of 2022 of $0.30 per common unit, payable on
May 20, 2022 to unitholders of record at the close of business
on May 13, 2022.
COMMON UNIT REPURCHASE PROGRAM
On October 29, 2020, the Board of Directors of
Rattler's general partner approved a common unit repurchase program
to acquire up to $100.0 million of Rattler's outstanding common
units through December 31, 2021. Pursuant to this program, during
the first quarter of 2022, the Company repurchased 0.2 million
common units at an average unit price of $11.90 per unit for a
total cost of $2.6 million.
On October 27, 2021, the Board of Directors of
Rattler's general partner approved an increase of $50.0 million to
the common unit repurchase program, bringing the total
authorization to $150.0 million of Rattler's outstanding common
units. The Board of Directors removed the expiration of the
authorization, extending the term of the repurchase authorization
indefinitely. In total from the program's inception through April
29, 2022, Rattler has repurchased 6.3 million common units for a
total cost of $64.9 million, utilizing 43% of the $150.0 million
authorization.
The Company may purchase common units under the
repurchase program opportunistically with cash on hand, free cash
flow from operations and proceeds from potential liquidity events
such as the sale of assets. The repurchase program may be suspended
from time to time, modified, extended or discontinued by the Board
of Directors of Rattler’s general partner at any time. Purchases
under the repurchase program may be made from time to time in open
market or privately negotiated transactions in compliance with Rule
10b-18 under the Securities Exchange Act of 1934, as amended, and
will be subject to market conditions, applicable legal
requirements, contractual obligations and other factors. Any common
units purchased as part of this program will be retired.
ACQUISITION
BANGL JOINT VENTURE
On January 19, 2022, Rattler invested
approximately $22.2 million in cash to acquire a 10% interest in
the BANGL joint venture. The BANGL pipeline, which began full
commercial service in the fourth quarter of 2021, provides NGL
takeaway capacity from MPLX and WTG gas processing plants in the
Permian Basin to the NGL fractionation hub in Sweeny, Texas and has
expansion capacity of up to 300,000 Bbl/d.
GUIDANCE
Below is Rattler's guidance for the full year
2022.
|
|
|
Rattler Midstream LP Guidance |
|
2022 |
|
|
Rattler Operated
Volumes(a) |
|
Produced Water Gathering and
Disposal (MBbl/d) |
800 - 900 |
Sourced Water (MBbl/d) |
300 - 400 |
Crude Oil Gathering
(MBbl/d) |
65 - 80 |
|
|
Financial Metrics ($ millions
except per unit metrics) |
|
Net Income |
$160 - $200 |
Adjusted EBITDA |
$320 - $360 |
Operated Midstream Capex |
$80 - $100 |
Equity Method Investment
EBITDA |
$100 - $130 |
Equity Method Investment
Distributions |
$45 - $55 |
Equity Method Investment
Contributions(b) |
$10 - $15 |
Depreciation, Amortization
& Accretion |
$40 - $60 |
Distribution per Unit(c) |
$1.20 |
(a) Excludes any volumes from Rattler's equity
method investment joint ventures(b) Excludes the
approximate $22 million paid for the acquisition of the interest in
BANGL joint venture in January 2022(c) Represents
distribution paid during calendar yearCONFERENCE
CALL
Rattler will host a conference call and webcast
for investors and analysts to discuss its results for the first
quarter of 2022 on Wednesday, May 4, 2022 at 9:00 a.m. CT.
Participants should call (877) 288-2756 (United States/Canada) or
(470) 495-9481 (International) and use the confirmation code
2976565. A telephonic replay will be available from 12:00 p.m. CT
on Wednesday, May 4, 2022 through Wednesday, May 11, 2022 at 12:00
p.m. CT. To access the replay, call (855) 859-2056 (United
States/Canada) or (404) 537-3406 (International) and enter
confirmation code 2976565. A live broadcast of the earnings
conference call will also be available via the internet at
www.rattlermidstream.com under the “Investors” section of the site.
A replay will also be available on the website following the
call.
About Rattler Midstream LP
Rattler Midstream LP is a Delaware limited
partnership formed by Diamondback Energy to own, operate, develop
and acquire midstream and energy-related infrastructure assets.
Rattler owns crude oil, natural gas and water-related midstream
assets in the Permian Basin that provide services to Diamondback
Energy and third party customers under primarily long-term,
fixed-fee contracts. For more information, please visit
www.rattlermidstream.com.
About Diamondback Energy, Inc.
Diamondback is an independent oil and natural
gas company headquartered in Midland, Texas focused on the
acquisition, development, exploration and exploitation of
unconventional, onshore oil and natural gas reserves in the Permian
Basin in West Texas. For more information, please visit
www.diamondbackenergy.com.
Forward-Looking Statements
This news release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
and Section 21E of the Exchange Act, which involve risks,
uncertainties, and assumptions. All statements, other than
statements of historical fact, including statements regarding
Rattler’s: future performance; business strategy; future
operations; estimates and projections of revenues, losses, costs,
expenses, returns, cash flow, and financial position; anticipated
benefits of strategic transactions (including acquisitions and
divestitures); and plans and objectives of management (including
plans for future cash flow from operations) are forward-looking
statements. When used in this news release, the words “aim,”
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“forecast,” “future,” “guidance,” “intend,” “may,” “model,”
“outlook,” “plan,” “positioned,” “potential,” “predict,” “project,”
“seek,” “should,” “target,” “will,” “would,” and similar
expressions (including the negative of such terms) as they relate
to Rattler are intended to identify forward-looking statements,
although not all forward-looking statements contain such
identifying words. Although Rattler believes that the expectations
and assumptions reflected in its forward-looking statements are
reasonable as and when made, they involve risks and uncertainties
that are difficult to predict and, in many cases, beyond Rattler’s
control. Accordingly, forward-looking statements are not guarantees
of future performance and Rattler’s actual outcomes could differ
materially from what Rattler has expressed in its forward-looking
statements.
Factors that could cause the outcomes to differ
materially include (but are not limited to) the following: changes
in supply and demand levels for oil, natural gas, and natural gas
liquids, and the resulting impact on the price for those
commodities; the impact of public health crises, including epidemic
or pandemic diseases such as the COVID-19 pandemic, and any related
company or government policies or actions; actions taken by the
members of OPEC and Russia affecting the production and pricing of
oil, as well as other domestic and global political, economic, or
diplomatic developments, including any impact of the ongoing
Russian-Ukrainian conflict on the global energy markets and
geopolitical stability; regional supply and demand factors,
including delays, curtailment delays or interruptions of
production, or governmental orders, rules or regulations that
impose production limits; federal and state legislative and
regulatory initiatives relating to hydraulic fracturing, including
the effect of existing and future laws and governmental
regulations; and the risks and other factors disclosed in Rattler’s
filings with the Securities and Exchange Commission, including its
Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on
the Securities and Exchange Commission’s web site at
http://www.sec.gov.
In light of these factors, the events
anticipated by Rattler’s forward-looking statements may not occur
at the time anticipated or at all. Moreover, Rattler operates in a
very competitive and rapidly changing environment and new risks
emerge from time to time. Rattler cannot predict all risks, nor can
it assess the impact of all factors on its business or the extent
to which any factor, or combination of factors, may cause actual
results to differ materially from those anticipated by any
forward-looking statements it may make. Accordingly, you should not
place undue reliance on any forward-looking statements made in this
news release. All forward-looking statements speak only as of the
date of this news release or, if earlier, as of the date they were
made. Rattler does not intend to, and disclaims any obligation to,
update or revise any forward-looking statements unless required by
applicable law.
Rattler Midstream LP |
Consolidated Balance Sheets |
(unaudited, in thousands) |
|
|
|
|
|
March 31, |
|
December 31, |
|
2022 |
|
2021 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash |
$ |
13,702 |
|
|
$ |
19,897 |
|
Accounts receivable—related-party |
|
49,885 |
|
|
|
58,154 |
|
Accounts receivable—third-party, net |
|
14,107 |
|
|
|
9,415 |
|
Sourced water inventory |
|
13,512 |
|
|
|
13,081 |
|
Other current assets |
|
1,008 |
|
|
|
1,181 |
|
Total current assets |
|
92,214 |
|
|
|
101,728 |
|
Property, plant and
equipment: |
|
|
|
Land |
|
98,646 |
|
|
|
98,645 |
|
Property, plant and equipment |
|
1,119,113 |
|
|
|
1,075,405 |
|
Accumulated depreciation, amortization and accretion |
|
(130,989 |
) |
|
|
(121,507 |
) |
Property, plant and equipment, net |
|
1,086,770 |
|
|
|
1,052,543 |
|
Equity method investments |
|
643,205 |
|
|
|
612,541 |
|
Real estate assets, net |
|
84,563 |
|
|
|
84,609 |
|
Intangible lease assets,
net |
|
3,544 |
|
|
|
3,650 |
|
Deferred tax asset |
|
59,548 |
|
|
|
62,356 |
|
Other assets |
|
6,160 |
|
|
|
3,708 |
|
Total assets |
$ |
1,976,004 |
|
|
$ |
1,921,135 |
|
Liabilities and Unitholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
$ |
58,480 |
|
|
$ |
48,267 |
|
Taxes payable |
|
603 |
|
|
|
603 |
|
Asset retirement obligations |
|
— |
|
|
|
79 |
|
Total current liabilities |
|
59,083 |
|
|
|
48,949 |
|
Long-term debt |
|
723,460 |
|
|
|
687,956 |
|
Asset retirement
obligations |
|
33,932 |
|
|
|
16,911 |
|
Total liabilities |
|
816,475 |
|
|
|
753,816 |
|
Unitholders’ equity: |
|
|
|
General Partner—Diamondback |
|
799 |
|
|
|
819 |
|
Common units—public (38,146,047 units issued and outstanding as of
March 31, 2022 and 38,356,771 units issued and outstanding as
of December 31, 2021) |
|
347,628 |
|
|
|
350,230 |
|
Class B units—Diamondback (107,815,152 units issued and outstanding
as of March 31, 2022 and as of December 31, 2021) |
|
799 |
|
|
|
819 |
|
Accumulated other comprehensive income (loss) |
|
11 |
|
|
|
10 |
|
Total Rattler Midstream LP unitholders’ equity |
|
349,237 |
|
|
|
351,878 |
|
Non-controlling interest |
|
810,292 |
|
|
|
815,441 |
|
Total equity |
|
1,159,529 |
|
|
|
1,167,319 |
|
Total liabilities and unitholders’ equity |
$ |
1,976,004 |
|
|
$ |
1,921,135 |
|
Rattler Midstream LP |
Consolidated Statements of Operations |
(unaudited, in thousands, except per unit
data) |
|
|
|
|
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
Revenues: |
|
|
|
Midstream revenues—related-party |
$ |
90,302 |
|
|
$ |
87,078 |
|
Midstream revenues—third-party |
|
10,446 |
|
|
|
8,121 |
|
Other revenues—related-party |
|
1,751 |
|
|
|
2,540 |
|
Other revenues—third-party |
|
964 |
|
|
|
1,069 |
|
Total revenues |
|
103,463 |
|
|
|
98,808 |
|
Costs and
expenses: |
|
|
|
Direct operating expenses |
|
21,628 |
|
|
|
32,511 |
|
Cost of goods sold (exclusive of depreciation and
amortization) |
|
15,180 |
|
|
|
8,811 |
|
Real estate operating expenses |
|
533 |
|
|
|
517 |
|
Depreciation, amortization and accretion |
|
20,687 |
|
|
|
11,246 |
|
Impairment and abandonments |
|
1,082 |
|
|
|
3,371 |
|
General and administrative expenses |
|
5,345 |
|
|
|
4,634 |
|
(Gain) loss on disposal of assets |
|
(71 |
) |
|
|
6 |
|
Total costs and expenses |
|
64,384 |
|
|
|
61,096 |
|
Income (loss) from
operations |
|
39,079 |
|
|
|
37,712 |
|
Other income
(expense): |
|
|
|
Interest income (expense), net |
|
(8,684 |
) |
|
|
(7,310 |
) |
Income (loss) from equity method investments |
|
9,080 |
|
|
|
(2,823 |
) |
Total other income (expense), net |
|
396 |
|
|
|
(10,133 |
) |
Net income (loss)
before income taxes |
|
39,475 |
|
|
|
27,579 |
|
Provision for (benefit from) income taxes |
|
2,384 |
|
|
|
1,671 |
|
Net income
(loss) |
|
37,091 |
|
|
|
25,908 |
|
Less: Net income (loss)
attributable to non-controlling interest |
|
29,160 |
|
|
|
19,893 |
|
Net income (loss)
attributable to Rattler Midstream LP |
$ |
7,931 |
|
|
$ |
6,015 |
|
|
|
|
|
Net income (loss)
attributable to limited partners per common unit: |
|
|
|
Basic |
$ |
0.19 |
|
|
$ |
0.13 |
|
Diluted |
$ |
0.19 |
|
|
$ |
0.13 |
|
Weighted average
number of limited partner common units outstanding: |
|
|
|
Basic |
|
38,159 |
|
|
|
41,742 |
|
Diluted |
|
38,376 |
|
|
|
41,742 |
|
Rattler Midstream LP |
Consolidated Statements of Cash Flows |
(unaudited, in thousands) |
|
|
|
|
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
Cash flows from
operating activities: |
|
|
|
Net income (loss) |
$ |
37,091 |
|
|
$ |
25,908 |
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
Provision for deferred income taxes |
|
2,387 |
|
|
|
1,671 |
|
Depreciation, amortization and accretion |
|
20,687 |
|
|
|
11,246 |
|
Unit-based compensation expense |
|
2,520 |
|
|
|
2,332 |
|
Impairment and abandonments |
|
1,082 |
|
|
|
3,371 |
|
(Income) loss from equity method investments |
|
(9,080 |
) |
|
|
2,823 |
|
Distributions from equity method investments |
|
7,550 |
|
|
|
— |
|
Other |
|
574 |
|
|
|
509 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable—related-party |
|
5,740 |
|
|
|
11,209 |
|
Accounts receivable—third-party |
|
(4,660 |
) |
|
|
(1,402 |
) |
Accounts payable and accrued liabilities |
|
(4,067 |
) |
|
|
(6,092 |
) |
Other |
|
64 |
|
|
|
1,093 |
|
Net cash provided by (used in)
operating activities |
|
59,888 |
|
|
|
52,668 |
|
Cash flows from
investing activities: |
|
|
|
Additions to property, plant and equipment |
|
(17,888 |
) |
|
|
(5,860 |
) |
Acquisitions of property, plant and equipment |
|
(4,334 |
) |
|
|
— |
|
Contributions to equity method investments |
|
(29,133 |
) |
|
|
(3,663 |
) |
Distributions from equity method investments |
|
— |
|
|
|
9,107 |
|
Other |
|
(2,750 |
) |
|
|
— |
|
Net cash provided by (used in)
investing activities |
|
(54,105 |
) |
|
|
(416 |
) |
Cash flows from
financing activities: |
|
|
|
Proceeds from borrowings from Credit Agreement |
|
35,000 |
|
|
|
12,000 |
|
Payments on Credit Agreement |
|
— |
|
|
|
(37,000 |
) |
Repurchased units as part of unit buyback |
|
(2,582 |
) |
|
|
(11,114 |
) |
Distribution to public |
|
(11,444 |
) |
|
|
(8,263 |
) |
Distribution to Diamondback |
|
(32,365 |
) |
|
|
(21,583 |
) |
Other |
|
(587 |
) |
|
|
(459 |
) |
Net cash provided by (used in)
financing activities |
|
(11,978 |
) |
|
|
(66,419 |
) |
Net increase
(decrease) in cash |
|
(6,195 |
) |
|
|
(14,167 |
) |
Cash at beginning of period |
|
19,897 |
|
|
|
23,927 |
|
Cash at end of period |
$ |
13,702 |
|
|
$ |
9,760 |
|
The following tables provide information
regarding our gathering, compression and transportation system as
of March 31, 2022 and utilization for the quarter ended
March 31, 2022:
Rattler Midstream LP |
Pipeline Infrastructure Assets |
(unaudited) |
|
|
|
|
|
|
|
As of March 31, 2022 |
(miles)(a) |
Delaware Basin |
|
Midland Basin |
|
Permian Total |
Crude oil |
113 |
|
46 |
|
159 |
Produced water |
273 |
|
327 |
|
600 |
Sourced water |
27 |
|
101 |
|
128 |
Total |
413 |
|
474 |
|
887 |
(a) Does not include any assets of the equity
method investment joint ventures
Rattler Midstream LP |
Capacity/Capability |
(unaudited) |
|
|
|
|
|
|
|
|
|
As of March 31, 2022 |
(capacity/capability)(a) |
Delaware Basin |
|
Midland Basin |
|
Permian Total |
|
Utilization |
Crude oil gathering (Bbl/d) |
240,000 |
|
65,000 |
|
305,000 |
|
26 |
% |
Produced water gathering and
disposal (Bbl/d) |
1,330,000 |
|
2,112,000 |
|
3,442,000 |
|
23 |
% |
Sourced water gathering
(Bbl/d) |
120,000 |
|
544,000 |
|
664,000 |
|
40 |
% |
(a) Does not include any assets of the equity
method investment joint ventures
Rattler Midstream LP |
Throughput |
(unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
(throughput)(a) |
2022 |
|
2021 |
Crude oil gathering
(Bbl/d) |
77,989 |
|
85,210 |
Natural gas gathering
(MMBtu/d) |
— |
|
130,437 |
Produced water gathering and
disposal (Bbl/d) |
845,835 |
|
765,588 |
Sourced water gathering
(Bbl/d) |
387,542 |
|
267,834 |
(a) Does not include any assets of the equity
method investment joint ventures.
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is a supplemental non-GAAP
financial measure used by management and external users of its
financial statements, such as industry analysts, investors, lenders
and rating agencies. Management believes Adjusted EBITDA is useful
because the measure allows it to more effectively evaluate the
Company's operating performance and compare the results of its
operations period to period without regard to its financing methods
or capital structure.
The Company defines Adjusted EBITDA as net
income (loss) attributable to the Company plus net income (loss)
attributable to non-controlling interest before interest expense
(net of amount capitalized), depreciation, amortization and
accretion on assets and liabilities of Rattler Midstream Operating
LLC, its proportional depreciation and interest expense related to
equity method investments, its proportional impairments and
abandonments related to equity method investments, non-cash
unit-based compensation expense, impairment and abandonments,
(gain) loss on disposal of assets, provision for income taxes and
other. The GAAP measure most directly comparable to Adjusted EBITDA
is net income (loss). However, Adjusted EBITDA should not be
considered an alternative to net income (loss) or any other measure
of financial performance or liquidity presented in accordance with
generally accepted accounting principles in the United States
("GAAP"). The Company excludes the items listed above from net
income (loss) in arriving at Adjusted EBITDA because these amounts
can vary substantially from company to company within our industry
depending upon accounting methods and book values of assets,
capital structures and the method by which the assets were
acquired. As such, Adjusted EBITDA as presented below may not be
comparable to similarly titled measures of other companies, and may
not be comparable to similarly titled measures in Rattler Midstream
Operating LLC’s credit agreement and in the indenture that governs
its senior notes. Certain items excluded from Adjusted EBITDA are
significant components in understanding and assessing a company’s
financial performance, such as a company’s cost of capital and tax
structure, as well as historic costs of depreciable assets.
This release provides 2022 guidance for Adjusted
EBITDA (non-GAAP measure) and net income (loss) (the comparable
GAAP measure). We do not provide guidance on the reconciling items
between forecasted net income (loss) and forecasted Adjusted EBITDA
due to the uncertainty regarding timing and estimates of these
items. We provide a range for the forecasts of net income (loss)
and Adjusted EBITDA to allow for the variability in timing and
uncertainty of estimates of reconciling items between forecasted
net income (loss) and forecasted Adjusted EBITDA. Such reconciling
items could be significant. Therefore, we cannot reconcile
forecasted net income (loss) to forecasted Adjusted EBITDA without
unreasonable effort.The following table presents a reconciliation
of net income (loss), the most directly comparable GAAP financial
measure, to Adjusted EBITDA for each of the periods indicated:
Rattler Midstream LP |
Adjusted EBITDA |
(unaudited, in thousands) |
|
|
|
|
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
Reconciliation of Net
Income (Loss) to Adjusted EBITDA: |
|
|
|
Net income (loss) attributable to Rattler Midstream
LP |
$ |
7,931 |
|
|
$ |
6,015 |
Net income (loss) attributable to non-controlling interest |
|
29,160 |
|
|
|
19,893 |
Net income
(loss) |
|
37,091 |
|
|
|
25,908 |
Interest expense, net of amount capitalized |
|
8,684 |
|
|
|
7,310 |
Depreciation, amortization and accretion |
|
20,687 |
|
|
|
11,246 |
Depreciation and interest expense related to equity method
investments |
|
14,371 |
|
|
|
10,525 |
Impairments and abandonments related to equity method
investments |
|
237 |
|
|
|
2,933 |
Impairment and abandonments |
|
1,082 |
|
|
|
3,371 |
Non-cash unit-based compensation expense |
|
2,520 |
|
|
|
2,344 |
(Gain) loss on disposal of assets |
|
(71 |
) |
|
|
6 |
Provision for income taxes |
|
2,384 |
|
|
|
1,671 |
Other |
|
— |
|
|
|
12 |
Adjusted
EBITDA |
|
86,985 |
|
|
|
65,326 |
Less: Adjusted EBITDA
attributable to non-controlling interest |
|
64,254 |
|
|
|
47,135 |
Adjusted EBITDA
attributable to Rattler Midstream LP |
$ |
22,731 |
|
|
$ |
18,191 |
Operating cash flow before working capital
changes, which is a supplemental non-GAAP financial measure,
represents net cash provided by operating activities as determined
under GAAP without regard to changes in operating assets and
liabilities. The GAAP financial measure most directly comparable to
operating cash flow before working capital changes is net cash
provided by operating activities. Management believes operating
cash flow before working capital changes is an accepted measure
which reflects cash flow from operating activities, additions to
property, plant and equipment and net investments in its equity
method investments across periods on a consistent basis. The
Company also uses this measure because adjusted operating cash flow
relates to the timing of cash receipts and disbursements that the
Company may not control and may not relate to the period in which
the operating activities occurred. This allows the Company to
compare its operating performance with that of other companies
without regard to financing methods and capital structure.
Free Cash Flow, which is a supplemental non-GAAP
financial measure, is operating cash flow before working capital
changes net of additions to property, plant and equipment and
distributions from equity method investments. The GAAP financial
measure most directly comparable to Free Cash Flow is net cash
provided by operating activities. Management believes that Free
Cash Flow is useful to investors as it provides the amount of cash
available for reducing debt, investing in additional capital
projects or paying dividends. This measure should not be considered
as an alternative to, or more meaningful than, net cash provided by
operating activities as an indicator of operating performance. The
Company's computation of operating cash flow before working capital
changes and Free Cash Flow may not be comparable to other similarly
titled measures of other companies.
The following tables present a reconciliation of net cash
provided by operating activities to operating cash flow before
working capital changes and Free Cash Flow:
Rattler Midstream LP |
Operating Cash Flow and Free Cash Flow |
(unaudited, in thousands) |
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
Net cash provided by operating activities |
$ |
59,888 |
|
|
$ |
52,668 |
|
Less: Changes in cash due to
changes in operating assets and liabilities: |
|
|
|
Accounts receivable—related-party |
|
5,740 |
|
|
|
11,209 |
|
Accounts receivable—third-party |
|
(4,660 |
) |
|
|
(1,402 |
) |
Accounts payable and accrued liabilities |
|
(4,067 |
) |
|
|
(6,092 |
) |
Other |
|
64 |
|
|
|
1,093 |
|
Total working capital
changes |
|
(2,923 |
) |
|
|
4,808 |
|
Operating cash flow
before working capital changes |
|
62,811 |
|
|
|
47,860 |
|
Additions to property, plant and equipment |
|
(17,888 |
) |
|
|
(5,860 |
) |
Distributions from equity method investments |
|
— |
|
|
|
9,107 |
|
Free Cash
Flow |
$ |
44,923 |
|
|
$ |
51,107 |
|
Investor Contact:Adam Lawlis+1
432.221.7467alawlis@rattlermidstream.com
Jared Carameros+1
432.247.6213jcarameros@rattlermidstream.com
Source: Rattler Midstream LP; Diamondback Energy, Inc.
Rattler Midstream (NASDAQ:RTLR)
Historical Stock Chart
From May 2024 to Jun 2024
Rattler Midstream (NASDAQ:RTLR)
Historical Stock Chart
From Jun 2023 to Jun 2024