Q2 2021 Altus Midstream Co Earnings Call
21.
We provided updated guidance on the Investor presentation posted on the Altus website yesterday and I want to highlight a few of those items.
Our gathered volume outlook has been adjusted upwards and is now 415 to 430 million cubic feet per day with the percentage of rich gas now expected between 70% to 75%.
This reflects the encouraging early performance of the 7 new wells brought online at Alpine high during the first half of the year and strong execution across our facilities.
These higher G&P volumes are prompting a $10 million increase to the midpoint of our adjusted EBITDA guidance, the new range is $260 million to $270 million.
With Permian Highway construction and startup complete our growth capital obligations for the remainder of the year are minimal and we are trending towards the lower end of our previous guidance range of $30 million to $40 million.
Altice has a strong liquidity position and we continue to focus on the balance sheet.
Our priorities remain efficiently refinancing the preferred and supporting our strong dividend payout I would also like the highlight that in June Altice was added to the Russell U S. Indices. This followed the companys inclusion into the Cushing Midstream index in May of this.
The index listings recognize altus midstream performance over the past year and increased the company's exposure to a broader range of investors.
Overall, we had a very good quarter and the expectations for the year remain constructive as we are outperforming across the board.
Operator that concludes our prepared remarks, we can now move onto Q&A.
At this time, if you would like to ask a question. Please press Star then the number 1 on your telephone keypad once again to ask a question. Please press Star then the number 1.
Do you have a question from the line of Spiro Dennis with Credit Suisse.
Hi, This is Chad on for Spiro just 1 for me.
It looks like the debt.
The completion supported volumes in <unk> 'twenty, 1 on the GMP side low.
Looking forward it sounds like Apa's activity in the Alpine high will slow are there any growth opportunities not on the backlog yet that if realized do you expect could meaningfully stem the natural G&P volume declines.
And just generally how our conversation of developing regarding growth given the current natural gas price environment and more focus shifting the producers.
2022 production outlooks.
Yes, John Thanks for the question. This is clay branches and the answer to your you.
Your first question related to the the decline in the added throughput from.
From the Ducks, yes, we did see contribution from the Ducks, but we'll also say that we saw a flattening of the curve from the existing baseline of the alpine high production.
For the Ducks those wells that were not part of the ducks.
So that's encouraging to us because it's not as steep of a decline is what we had forecast we were able to as you can see improve our guidance on our on our forecasted volumes as we go forward as far as additional activity in the area, we're seeing other producers.
Activity increase we're seeing rigs in and around the area an uptick in the number of rigs not only in the Delaware basin, but in the immediate area, which is very encouraging.
We also heard on apache's call today that they were exceedingly.
Yes.
Happy about the the performance of the Ducks of the <unk> that came on in May.
We're exceeding expectations and that they would be competing for capital in the.
As a Apache makes decisions going forward, but it's a portfolio. So it will be in the conversation with other investment opportunities.
Including the oil opportunities in Apache's portfolio. So we think thats very encouraging net.
The thing is has been committed yet in terms of of capital, but we're glad that alpine high is in the conversation.
Great. That's all I had thanks for the time guys.
Thank you Chad.
Okay.
And once again to ask a question. Please press Star then the number 1 on your telephone.
A.
And at this time there are no audio questions I would like to turn the call back over to clay.
Okay. Thank you for joining us on our call today I'd like to leave you with the following closing thoughts on the whole our JV pipelines are on track and delivering as expected. The natural gas pipelines are full and performing as planned and we see upside potential in our liquids pipelines as drilling activity increases in the Permian.
Based.
Our G&P business is running very well, we have a very competitive low cost operating structure in place. The volume outlook has improved and costs are in check we are operating safely and carefully to protect our environment.
While we were pleased with our performance we continue to look for ways to more fully utilize our asset base and efficiently and grow our business.
I look forward to keeping you apprised of our progress on these fronts on.
Operator, I will now turn the call back to you.
Thank you for your participation. This concludes today's call you may now disconnect.
Okay.
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