UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 12, 2014
 
AMERICAN MIDSTREAM PARTNERS, LP
(Exact name of registrant as specified in its charter)

	

Delaware	 	001-35257	 	27-0855785	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(I.R.S. Employer
Identification No.)	
 	 	
1400 16th Street, Suite 310
Denver, Colorado	 	80202	
(Address of principal executive offices)	 	(Zip Code)	

Registrant’s telephone number, including area code: (720) 457-6060
Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

		
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	

		
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	

		
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	

		
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 
Item 2.02 Results of Operations and Financial Condition

On March 10, 2014, American Midstream Partners, LP (the “Partnership”) issued a press release announcing its financial results for the three months and year ended December 31, 2013. Additional information regarding the Partnership’s financial results for the quarter ended December 31, 2013 is attached hereto as Exhibit 99.1.

The information in this report, including the Exhibit attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, or the Exchange Act, except as specifically identified therein as being incorporated by reference.

Item 9.01 Financial Statements and Exhibits
(d) Exhibits.

See “Index to Exhibits” attached to this Current Report on Form 8-K, which is incorporated by reference herein.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	

 	 	 	 	 	

 	 	 	 	 	
 	 	American Midstream Partners, LP	
 	 	
 	 	By: American Midstream GP, LLC,	
 	 	its General Partner	
Date:	 	 	
March 12, 2014	 	By:	 	/s/ Daniel C. Campbell	
 	 	Name:	 	Daniel C. Campbell	
 	 	Title:	 	Senior Vice President and Chief Financial Officer	

Exhibit Index

	

 	 	 	 	 	

 	 	 	 	
Exhibit Number	  	Description	 	
99.1	 	  	American Midstream Partners, LP Fourth Quarter 2013 Selected Financial Information	March 12, 2014	

Exhibit 99.1

American Midstream Partners, LP and Subsidiaries
Consolidated Statements of Operations
(Unaudited, in thousands, except for per unit amounts)

																	
 	 	Three Months Ended December 31,	 	Year Ended December 31,	
 	 	2013	 	2012	 	2013	 	2012	
Revenue	 	$	76,014		 	$	56,420		 	$	292,626		 	$	194,843		
Gain (loss) on commodity derivatives	 	94		 	243		 	28		 	3,400		
Total revenue	 	76,108		 	56,663		 	292,654		 	198,243		
Operating expenses:	 	 	 	 	 	 	 	 	
Purchases of natural gas, NGLs and condensate	 	51,479		 	45,097		 	214,149		 	145,172		
Direct operating expenses	 	8,654		 	5,248		 	29,553		 	16,798		
Selling, general and administrative expenses	 	7,654		 	4,208		 	21,402		 	14,309		
Equity compensation expense	 	217		 	511		 	2,094		 	1,783		
Depreciation, amortization and accretion expense	 	7,728		 	5,562		 	29,999		 	21,284		
Total operating expense	 	75,732		 	60,626		 	297,197		 	199,346		
Gain (loss) on involuntary conversion of property, plant and equipment	 	(78	)	 	(1,021	)	 	343		 	(1,021	)	
Gain on sale of assets, net	 	—		 	2		 	—		 	123		
Loss on impairment of property, plant and equipment	 	(2,923	)	 	—		 	(18,155	)	 	—		
Operating loss	 	(2,625	)	 	(4,982	)	 	(22,355	)	 	(2,001	)	
Other expense:	 	 	 	 	 	 	 	 	
Interest expense	 	(2,333	)	 	(1,487	)	 	(9,291	)	 	(4,570	)	
Net loss before income tax benefit	 	(4,958	)	 	(6,469	)	 	(31,646	)	 	(6,571	)	
Income tax benefit	 	(94	)	 	—		 	495		 	—		
Net loss from continuing operations	 	(5,052	)	 	(6,469	)	 	(31,151	)	 	(6,571	)	
Discontinued operations	 	 	 	 	 	 	 	 	
(Loss) income from operations of disposal groups, net of tax	 	(489	)	 	225		 	(2,255	)	 	319		
Net loss	 	(5,541	)	 	(6,244	)	 	(33,406	)	 	(6,252	)	
Net income attributable to noncontrolling interests	 	100		 	7		 	633		 	256		
Net loss attributable to the Partnership	 	$	(5,641	)	 	$	(6,251	)	 	$	(34,039	)	 	$	(6,508	)	
 	 	 	 	 	 	 	 	 	
General partner's interest in net loss	 	$	(209	)	 	$	(124	)	 	$	(1,405	)	 	$	(129	)	
Limited partners’ interest in net loss	 	$	(5,432	)	 	$	(6,127	)	 	$	(32,634	)	 	$	(6,379	)	
 	 	 	 	 	 	 	 	 	
Limited partners' net loss per common unit:	 	 	 	
Basic and diluted:	 	 	 	 	 	 	 	 	
Loss from continuing operations	 	$	(1.55	)	 	$	(0.69	)	 	$	(6.76	)	 	$	(0.73	)	
(Loss) income from operations of disposal groups	 	(0.07	)	 	0.02		 	(0.24	)	 	0.03		
Net loss	 	$	(1.62	)	 	$	(0.67	)	 	$	(7.00	)	 	$	(0.70	)	
Weighted average number of common units outstanding:	 	 	 	 	 	 	 	 	
Basic and diluted	 	6,935		 	9,145		 	7,981		 	9,113		

1

American Midstream Partners, LP and Subsidiaries
Reconciliation of Net (loss) income attributable to the Partnership
to Adjusted EBITDA to Distributable Cash Flow
(Unaudited, in thousands)

	
																	
   	 	Three Months Ended December 31,	 	Year Ended December 31,	
 	 	2013	 	2012	 	2013	 	2012	
Reconciliation of Adjusted EBITDA to Net loss attributable to the Partnership	 	 	 	 	 	 	 	 	
Net loss attributable to the Partnership	 	$	(5,641	)	 	$	(6,251	)	 	$	(34,039	)	 	$	(6,508	)	
Add:	 	 	 	 	 	 	 	 	
Depreciation, amortization and accretion expense	7,728		 	5,595		 	29,999		 	21,284		
Interest expense	2,149		 	1,270		 	7,850		 	4,570		
Debt issuance costs	518		 	424		 	2,113		 	1,564		
Unrealized (gain) loss on derivatives, net	337		 	740		 	1,495		 	(992	)	
Non-cash equity compensation expense	217		 	511		 	2,094		 	1,783		
Transaction expenses	2,139		 	—		 	3,987		 	—		
Impairment on property, plant and equipment	2,923		 	—		 	18,155		 	—		
Loss on impairment of noncurrent assets held for sale	593		 	—		 	2,400		 	—		
Deduct:	 	 	 	 	 	 	 	 	
Income tax benefit	 	185		 	—		 	847		 	—		
COMA income	299		 	393		 	843		 	3,373		
Straight-line amortization of put costs (a)	30		 	22		 	119		 	291		
OPEB plan net periodic benefit (cost)	19		 	24		 	73		 	88		
Gain (loss) on involuntary conversion of property, plant and equipment	—		 	(1,021	)	 	343		 	(1,021	)	
Gain (loss) on sale of assets, net	(75	)	 	2		 	(75	)	 	123		
Adjusted EBITDA	 	$	10,505		 	$	2,869		 	$	31,904		 	$	18,847		
Deduct:	 	 	 	 	 	 	 	 	
Cash interest expense (b)	 	$	1,713		 	$	1,264		 	$	7,295		 	$	3,854		
Normalized maintenance capital	 	1,196		 	1,037		 	4,685		 	3,828		
Normalized integrity management (c)	 	—		 	315		 	—		 	1,007		
Series A Convertible Preferred payment	 	1,321		 	—		 	3,696		 	—		
Distributable Cash Flow	 	$	6,275		 	$	253		 	$	16,228		 	$	10,158		

(a)	Amounts noted represent the straight-line amortization of the cost of commodity put contracts over the life of the contract.	
		
(b)	Excludes amortization of debt issuance costs and mark-to-market adjustments related to interest rate derivatives.	
		
(c)	Amounts noted represent average estimated integrity management costs over the seven-year mandatory testing cycle, net of integrity management costs that are expensed in direct operating expenses.  Following a recent re-evaluation of the integrity management program, management determined that integrity management expenses will continue to be expensed as incurred in direct operating expenses consistent with past practice.  However, beginning with the third quarter of 2013, integrity management expenses are no longer normalized in the calculation of distributable cash flow.	

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American Midstream Partners, LP and Subsidiaries
Segment Operating Data
(Unaudited, in thousands, except for operating and pricing data)

																	
 	 	Three Months Ended December 31,	 	Year Ended December 31,	
 	 	2013	 	2012	 	2013	 	2012	
Segment Financial and Operating Data:	 	 	 	 	 	 	 	 	
Gathering and Processing segment	 	 	 	 	 	 	 	 	
Financial data:	 	 	 	 	 	 	 	 	
Revenue	 	$	49,146		 	$	44,407		 	$	192,446		 	$	145,714		
Gain (loss) on commodity derivatives, net	 	94		 	243		 	28		 	3,400		
Total revenue	 	49,240		 	44,650		 	192,474		 	149,114		
Purchases of natural gas, NGLs and condensate	 	41,106		 	33,880		 	156,334		 	108,656		
Direct operating expenses	 	3,525		 	4,236		 	14,214		 	11,767		
Other financial data:	 	 	 	 	 	 	 	 	
Segment gross margin	 	$	7,955		 	$	8,072		 	$	36,464		 	$	35,393		
Operating data:	 	 	 	 	 	 	 	 	
Average throughput (MMcf/d)	 	298.2		 	209.7		 	277.2		 	291.2		
Average plant inlet volume (MMcf/d) (a)	 	125.8		 	73.6		 	117.3		 	116.1		
Average gross NGL production (Mgal/d) (a)	 	49.6		 	38.5		 	52.0		 	49.9		
Average gross condensate production (Mgal/d) (a)	 	47.2		 	32.7		 	46.2		 	22.6		
Average realized prices:	 	 	 	 	 	 	 	 	
Natural gas ($/MMcf)	 	$	4.24		 	$	3.62		 	$	4.03		 	$	2.98		
NGLs ($/gal)	 	$	1.01		 	$	0.97		 	$	0.90		 	$	1.08		
Condensate ($/gal)	 	$	2.14		 	$	2.25		 	$	2.29		 	$	2.30		
Transmission segment	 	 	 	 	 	 	 	 	
Financial data:	 	 	 	 	 	 	 	 	
Total revenue	 	$	23,361		 	$	15,413		 	$	90,377		 	$	52,529		
Purchases of natural gas, NGLs and condensate	 	10,373		 	11,216		 	57,815		 	36,516		
Direct operating expenses	 	4,310		 	1,012		 	13,259		 	5,031		
Other financial data:	 	 	 	 	 	 	 	 	
Segment gross margin	 	$	12,966		 	$	3,841		 	$	32,408		 	$	13,313		
Operating data:	 	 	 	 	 	 	 	 	
Average throughput (MMcf/d)	 	743.8		 	365.2		 	644.7		 	398.5		
Average firm transportation - capacity reservation (MMcf/d)	 	587.6		 	736.4		 	640.7		 	703.6		
Average interruptible transportation - throughput (MMcf/d)	 	497.0		 	113.3		 	389.2		 	86.6		
Terminals segment (b)	 	 	 	 	 	 	 	 	
Financial data:	 	 	 	 	 	 	 	 	
Total revenue	 	$	3,507		 	$	—		 	$	9,831		 	$	—		
Direct operating expenses	 	819		 	—		 	2,080		 	—		
Other financial data:	 	 	 	 	 	 	 	 	
Segment gross margin	 	$	2,688		 	$	—		 	$	7,751		 	$	—		
Operating data:	 	 	 	 	 	 	 	 	
Storage utilization	 	96	%	 	—		 	96	%	 	—		
(a)     Excludes volumes and gross production under our elective processing arrangements.
(b)     Terminals segment amounts are for the period from April 15, 2013 to December 31, 2013.

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