Noble Midstream sees FY17 CapEx $365M-$405M
The 2017 capital budget remains $365 million to $405 million, or $215 million to $235 million attributable to the Partnership. Following the record volumes in the second quarter, new growth projects are expected to become operational in the third and fourth quarter of 2017, which are expected to provide continued gathering volume growth throughout the year. Highlighting the volume guidance is expected oil and gas gathering volume growth of 36% in the second half of 2017 above the first half average, with third quarter volumes expected to grow 5% to 16% above the record second quarter average volumes, and fourth quarter volumes expected to grow 28% above anticipated third quarter volumes. Produced water gathering volumes are also expected to continue to set records as the average volume in the second half is expected to nearly triple the first half average, with third quarter volumes expected to grow 43% to 74% above the second quarter average, and fourth quarter volumes expected to grow 94% to 105% from the expected third quarter volumes. Third and fourth quarter fresh water delivery volumes are expected to range between 100 MBw/d and 130 MBw/d, or 27% below the first half daily fresh water delivery average due primarily to the Partnership's continued use of conservative fresh water per equivalent well estimates and projected reduced completion activity. Second half of 2017 reduced fresh water delivery is expected to be offset by the gathering segment growth in net income and EBITDA, while EBTIDA attributable to the Partnership is estimated to grow approximately 29% in the second half of 2017 as a results of the additional DevCo interests recently acquired in the drop down. The second half of 2017 financial guidance is highlighted by DCF coverage of 1.6x to 1.9x in the third quarter and 1.8x to 2.1x in the fourth quarter.