Net loss attributable to the partnership for the nine months ended Sept. 30, 2016 was $7.1 million, a decrease of 20% as compared to the same period in 2015.

American Midstream is a limited partnership formed to own, operate, develop and acquire a portfolio of midstream energy assets. The partnership provides midstream services in Texas, North Dakota, and the Gulf Coast and Southeast regions of the United States.

Gross margin was $33.8 million for the third quarter, an increase of 16% as compared to the same period in 2015, due to 3% higher average throughput volumes in its Transmission segment.

Gross margin was $93.7 million for the nine months ended Sept. 30, 2016, a decrease of 2% as compared to the same period in 2015, primarily due to lower NGL production and lower average plant inlet volume in its Gathering and Processing segment, partially offset by increased demand and higher contracted firm storage capacity in its Terminals segment.

Adjusted EBITDA was $35.8 million for the third quarter, an increase of $20.0 million or 126% as compared to the same period in 2015. Adjusted EBITDA was $92.2 million for the nine months ended Sept. 30, 2016, an increase of $46.3 million or 101% as compared to the same period in 2015.

Third-quarter and year-to-date increases were primarily related to earnings from its Gulf Coast acquisitions of interests in the Destin natural gas pipeline, the Okeanos, a 100-mile gas gathering system, and the Tri-States and Wilprise natural gas liquids pipelines acquired in April 2016.

Gathering and Processing gross margin was $18.8 million for the third quarter, an increase of $0.4 million or 2.2% as compared to the same period in 2015, primarily attributable to higher realized NGL prices of 3.9% and higher average throughput volumes, offset by lower average NGL production and higher purchase costs associated with its Magnolia, Chatom and Chapel Hill systems.

Transmission gross margin was $12.1 million for the third quarter, an increase of $4.5 million or 59% as compared to the same period in 2015, primarily attributable to 3% higher average throughput volumes through its High Point
system.

Terminals gross margin was $2.9 million for the third quarter, a decrease of $0.2 million or 6% as compared to the same period in 2015, primarily attributable to earn-out incentive awards for cash flow success of the Harvey
plant expansion. Pro forma for exclusion of the cash earn-out, gross margin would have been $4.1 million for the third quarter or an increase of 32%.

American Midstream said that at the beginning of the third quarter, the Destin pipeline was shut in due to a non-affiliated, third-party plant outage in Pascagoula, Miss. Through other integrated assets the partnership operates in the Gulf of Mexico, take-away volumes on the Destin Pipeline were redirected onto the partnership’s High Point transmission system, enabling customers to resume gas flow at or above previous levels.

For its Harvey terminal expansion in New Orleans, La., the partnership received on Oct. 19 a site plan approval from Jefferson Parish to construct an additional 1.35 million barrels of capacity at its Harvey terminal. The project includes the construction of eight 100,0000-bbl tanks and eleven 50,000-bbl tanks, additional rail capacity, and a second deepwater ship berth that will have a draft of greater than 50 feet.

The planned $50 to $60 million expansion over the next three years will bring the total site capacity to approximately 2.5 million bbl. The expansion is slated to commence in the first quarter of 2017 with the first phase of 400,000 bbl scheduled to be in service by fourth quarter of 2017.

The Harvey site currently has 1.1 million bbl of storage capacity, with a utilization rate of greater than 98%, and is well-positioned on the Mississippi River to serve a diverse customer base, including local refiners, chemical manufacturers, and product distributors with flexibility to store distillates, fuel oil, petroleum feedstocks, commodity, agricultural, and specialty chemicals.

There has been steady demand for storage capacity in the Port of New Orleans, and the partnership’s Harvey site continues to attract interest for long-term storage positions with full modal access for ships, barges, railcars and tank trucks to serve both the domestic and import/export markets, American Midstream said.

Meanwhile, American Midstream expects to close its JP Energy merger deal between late 2016 and early 2017. Until the closing of the proposed merger, American Midstream and JP Energy will continue to operate independently.

The merger of American Midstream and JP Energy creates a midstream business operating in North American basins, including the Permian, Gulf of Mexico, Eagle Ford and Bakken. The combined partnership will have an estimated enterprise value of $2 billion.