Guidance Update
Rattler 2020 Guidance | |
($ millions) | |
Adjusted EBITDA(a) | |
Equity Method Investment EBITDA(b) | |
Operated Midstream Capex |
(a) Includes Equity Method Investment EBITDA
(b) Includes EPIC,
“Rattler has dramatically reduced its 2020 capital budget by over 40% due to the lower expected activity levels at Diamondback for the year. EBITDA guidance has been reduced by ~25% at the midpoint, which assumes a 15% - 25% reduction in equity method EBITDA contributions for the year as well as less volumes for the base business due to lower activity levels. At this time, Rattler expects to maintain its distribution, and has sufficient liquidity to fund its capital commitments and distribution for the foreseeable future. Should Diamondback cut activity further, Rattler’s capital expenditures will be reduced accordingly,” stated
About
About
Diamondback is an independent oil and natural gas company headquartered in
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Rattler assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events, including but not limited to political and economic conditions in the oil and gas industry, domestic and foreign supply of oil and natural gas, the level of consumer demand, the impact of the coronavirus outbreak on global economic conditions and oil demand, future distributions on Rattler’s units and capital expenditures. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Rattler. Information concerning these risks and other factors can be found in Rattler’s filings with the
Non-GAAP Financial Measures
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure.
Rattler defines Adjusted EBITDA as net income before income taxes, interest expense, net of amount capitalized, interest expense related to equity method investments, non-cash unit-based compensation expense, depreciation, amortization and accretion and other non-cash transactions. Depreciation, amortization and accretion includes depreciation, amortization and accretion on assets and liabilities of
Investor Contact:
+1 432.221.7467
IR@rattlermidstream.com
Source:
2020 GlobeNewswire, Inc., source