Access Midstream Partners’ outlook for 2014 and 2015

Market Realist

An investor’s must-know guide to Access Midstream Partners (ACMP) (Part 4 of 5)

(Continued from Part 3)

Outlook

In 2013, Access Midstream Partners (ACMP) spent $1.468 billion in growth capex and $110 million in maintenance capex. Access Midstream Partners has given guidance for growth capital expenditures in 2014 of $1.1 billion to $1.2 billion. Plus, the outlook for maintenance capital expenditures in 2014 is ~$130 million. For 2015, ACMP expects growth capex of $800 million to $900 million and maintenance capex of ~$130 million.

Much of ACMP’s capital expenditures will focus on the Utica Shale, where it expects to invest $1.8 billion by 2015, and the Niobrara Shale, where it expects to invest $300 million by 2015.

ACMP’s 2013 EBITDA was $859 million. The company expects to grow EBITDA to between $1.0 billion and $1.1 billion in 2014, and to between $1.2 billion and $1.3 billion in 2015.

Given current EBITDA and maintenance capex projections, ACMP noted in its latest presentation that it believes the company is capable of delivering ~15% annual distribution growth.

Note that ACMP is part of the Alerian MLP ETF (AMLP) as well as the Global X MLP ETF (MLPA). Other associated companies include Chesapeake Energy (CHK), which is ACMP’s major customer. Plus, Williams Companies (WMB) owns 50% of the general partner of ACMP and therefore has significant control over the company.

Please read on to the next part of this series to read about one key factor that sets ACMP apart from most other natural gas gathering and processing MLPs.

Continue to Part 5

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