American Midstream Partners LP (NYSE:AMID) Q3 2018 Earnings Conference Call - Final Transcript
Nov 08, 2018 • 10:00 am ET
Good morning, and welcome to the American Midstream Third Quarter 2018 Earnings Call. (Operator Instructions) Please note, this event is being recorded.
I will now like to turn the conference over to Mark Schuck. Please go ahead.
Thank you, Debbie. Good morning, everyone, and welcome to the Third Quarter 2018 Earnings Call for American Midstream Partners. This morning, we issued our press release, outlining our third quarter results, which can be found in the Investor Relations section of the Partnership's website at americanmidstream.com. In addition, a replay of this call will be archived on the Partnership's website for a limited time.
(Forward-Looking Cautionary Statements)
We will discuss non-GAAP financial measures on today's call. Please refer to the table in our earnings release and presentation, both posted in the Investor Relations section of our website to find a reconciliation of non-GAAP financial measures referenced in today's call to their corresponding GAAP measures.
Finally, as previously announced on September 28, 2018, an affiliate of ArcLight Energy Partners Fund V, proposed to acquire all outstanding publicly held units of American Midstream Partners it does not already own. The Conflicts Committee, which is comprised of the independent directors of the Board of Directors of American Midstream's General Partner, is currently evaluating this proposal.
Management will be unable to comment on this proposal or the evaluation process during today's call. In view of this ongoing process, following today's call, we will not open the line for questions. Leading the call today will be Lynn Bourdon, President and Chief Executive Officer; followed by Eric T. Kalamaras, Senior Vice President and Chief Financial Officer.
Lynn and Eric will discuss operational and financial results for the third quarter of 2018.
I will now turn the call over to our Chief Executive Officer, Lynn Bourdon.
Thank you, Mark. We appreciate everyone joining us on the call this morning. Today, we will discuss our third quarter 2018 results, including the continued execution and improving performance of our core businesses. We continue to see producer activity, either increasing or remaining elevated across our Gathering and Processing business as a result of the continued strength in commodity prices and downstream demand.
The high activity level in other regions also has benefited our liquids fractionation and marketing business with rail and truck volumes both higher than in 2017. Our anchor producer in the Eagle Ford Lavaca system continues to run an active multi-rig drilling program, and has brought online over 40 new wells during the first 9 months of 2018. And we anticipate the total for the year to be approximately 55.
The results of this drilling program has driven a 30% increase in throughput volumes on our system from third quarter of 2017 and a 7% increase from the second quarter.
We have invested approximately $8 million in the third quarter to increase compression and system capabilities, benefiting both AMID and our customer.
Our East Texas and Permian basin gas Gathering and Processing systems are also experiencing increased producer activity in and around