Inergy Midstream, L.P. (NYSE:NRGM) (“Inergy Midstream”) today reported results of operations for the quarter ended June 30, 2012, the third quarter of fiscal 2012. Effective May 2012, Inergy Midstream acquired US Salt, LLC (“US Salt”) from Inergy, L.P. (“Inergy”). This acquisition is reflected in Inergy Midstream’s consolidated financial statements, and periods prior to the acquisition have been recast to include the historical results of operations of US Salt. This accounting treatment is required as the transaction is amongst entities under common control.
Inergy Midstream reported Adjusted EBITDA of $33.4 million for the quarter ended June 30, 2012, an increase of $7.0 million, or approximately 27%, from $26.4 million for the quarter ended June 30, 2011. Included in Adjusted EBITDA is a one-time business interruption insurance recovery amount of approximately $3.6 million received this quarter from an occurrence in December 2010. Net income was $18.0 million for the quarter ended June 30, 2012, and $15.5 million in the same quarter of last year.
For the nine-month period ended June 30, 2012, Adjusted EBITDA increased approximately 29% to $93.9 million from $72.8 million for the same prior-year period. Net income was $52.0 million for the nine months ended June 30, 2012, and $39.7 million in the same prior-year period.
“We continue to perform consistently across the board while executing our growth strategy,” said John Sherman, President and CEO of Inergy Midstream. “Our expansion projects are moving forward, and we are experiencing solid fundamentals supportive of our natural gas and natural gas liquids platform. The recent acquisition of US Salt adds to our potential, and we remain focused on delivering cash earnings growth to our investors.”
As previously announced, the Board of Directors of Inergy Midstream’s general partner declared a cash distribution of $0.38 per limited partner unit ($1.52 annually) for the quarter ended June 30, 2012, representing an approximate 2.7% increase over the distribution paid for the previous quarter. The distribution will be paid on August 14, 2012.