Rice Midstream Partners (RMP), which was formed by Rice Energy (RICE) to provide natural gas gathering and compression and water services, has gained 45.6% YTD (year-to-date), despite touching multiyear lows in the beginning of 2016. The YTD gain in RMP’s share price could be attributed to the growth in RMP’s throughput volumes, despite lower overall drilling activity, and an increase in RMP’s core dedication.
Currently, RMP is trading 4.4% above its 50-day moving average and 33.2% above its 200-day moving average. The company’s 50-day moving average surpassed its 200-day moving average in April 2016, indicating a bullish trend in the stock.
Rice Midstream’s 1Q16 EBITDA (earnings before interest, taxes, depreciation, and amortization) increased to $42.2 million from $12.4 million in 1Q15, a YoY (year-over-year) jump of 239%. The partnership’s recent performance was driven by strong throughput volume growth and the dropdown acquisition of Rice Energy’s (RICE) water business.
In this series, we’ll analyze RMP’s balance position and cash flow measures. We’ll also look into RMP’s valuations, commodity price exposure, key performance indicators, and analyst projections.
Let’s start with throughput guidance.