Noble Midstream Partners LP (NYSE:NBLX) Q3 2019 Earnings Conference Call Transcript
Nov 07, 2019 • 12:30 pm ET
Good morning and welcome to the Noble Midstream Third Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.
I would like to now turn the conference over to Park Carrere, Manager, Investor Relations. Please go ahead.
Thank you, Jay. Good morning, everyone, and welcome to the Noble Midstream Partners third quarter 2019 earnings call. With me today to review our results is Brent Smolik, CEO; and Tom Christensen, CFO. Following our prepared remarks, we will hold a question-and-answer session.
Here to participate in the question-and-answer session, we also have Chris Stefano [Phonetic], Director of Capital Projects, and Barry Guice, Director of Operations. This morning, we announced third quarter 2019 results as well as fourth quarter and updated full-year guidance. The press release and supplemental slides are on the Investors section of our website nblmidstream.com. Upon filing later today, our 10-Q will be available in the same location.
As a reminder, today's discussion will contain forward-looking statements and certain non-GAAP financial measures. Please refer to our latest news releases for non-GAAP reconciliations as well as our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements.
At this time, I'll turn the call over to Brent.
Thank you and good morning everyone. I apologize in advance. I got something going on over my voice today, but I'll get you through it. This is my first earnings call in the Midstream CEO role and the first call that Tom and I have hosted together. And I feel fortunate because we've got a really strong third quarter to update you on. You may have seen in the release, we made good progress on both operational and financial objectives.
During the quarter, we continue to focus on execution and cost management. And we announced some new business development wins as planned in the second half ramp up in throughput and an EBITDA began to show up in the third quarter and we expect that momentum to continue into the fourth quarter. So I'll give you a few more details beginning on Slide 3. For the third quarter in a row now, we've delivered record throughput volumes as our gathering business continue to grow and as connection cost per well continue to trend lower, which has resulted in capital spending that was below guidance as combination allowed NBLX to deliver higher than forecasted distributable cash flow and coverage for the quarter.
Oil and gas gathering throughput averaged 319,000 barrels of oil equivalent per day, up above the high end of guidance and up 8% versus the second quarter. Produced water volumes were consistent with guidance and up 10% versus Q2. Fresh water volumes of 135,000 barrels per day declined quarter-over-quarter, consistent with upstream activity. The Partnership delivered water to 2 frac crews during the third quarter compared to approximately 2.3 crews during the second quarter.
We continue to diversify our