UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (date of earliest event reported): December 7, 2016

AMERICAN MIDSTREAM PARTNERS, LP
(Exact name of Registrant as specified in its charter)

 
					
Delaware	 	001-35257	 	27-0855785	
(State or other jurisdiction of
incorporation or organization)	 	(Commission
file number)	 	(I.R.S. employer
identification number)	
		
2103 CityWest Boulevard
Building #4, Suite 800
Houston, Texas	 	77042	
(Address of principal executive offices)	 	(Zip code)	
(713) 815-3900
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☒	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 8.01	Other Events.	
Notes Offering
On December 7, 2016, American Midstream Partners, LP (the “Partnership”) and American Midstream Finance Corporation, a Delaware corporation and a wholly owned subsidiary of the Partnership (“American Midstream Finance”), issued a press release announcing that, subject to market and other conditions, the Partnership and American Midstream Finance intend to offer for sale $300 million in aggregate principal amount of senior unsecured notes due 2021 in a private offering to eligible purchasers that is exempt from registration under the Securities Act of 1933.
A copy of such press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Pro Forma Financial Information
As previously announced, on October 23, 2016, the Partnership agreed to acquire 100% of JP Energy Partners LP (“JPE”) in a unit-for-unit merger with JPE surviving as a wholly owned subsidiary of the Partnership.
The Partnership is filing its unaudited pro forma condensed consolidated financial statements (the “Pro Forma Financial Information”) to show the impact of the pending mergers on the Partnership’s condensed balance sheet as of September 30, 2016, and on its condensed consolidated statement of operations for the nine months ended September 30, 2016 and for the fiscal years ended December 31, 2015, December 31, 2014 and December 31, 2013, as set forth in Exhibit 99.2 to this report and presented in accordance with Article 11 of Regulation S-X. The Pro Forma Financial Information is derived from the historical consolidated financial statements of the Partnership and JPE as well as the entities underlying (i) the purchases by American Midstream Emerald, LLC, a wholly owned indirect subsidiary of the Partnership (“Emerald”), of membership interests in certain midstream entities from Emerald Midstream, LLC (the “Emerald Acquisitions”) and (ii) the purchase by the Partnership of a 26.33% interest in Pinto Offshore Holdings, LLC (the “Delta House Acquisition”).
The unaudited pro forma condensed consolidated balance sheet gives effect to (i) the merger of a wholly owned subsidiary of the Partnership with and into JPE, with JPE surviving as a wholly owned subsidiary of the Partnership (the “JPE Merger”), and (ii) the merger of a wholly owned subsidiary of the Partnership’s general partner (the “General Partner”) with and into JPE Energy GP II LLC (“JPE GP”), with JPE GP surviving as a wholly owned subsidiary of the General Partner (together with the JPE Merger, the “Mergers”), as if such Mergers had occurred on September 30, 2016. The unaudited pro forma condensed consolidated statement of operations gives effect to the Mergers as if they had occurred on January 1, 2013, and as if the Emerald Acquisitions and Delta House Acquisition had occurred on January 1, 2015.
Exhibit 99.2 is incorporated by reference into this Item 8.01.
Additional Information and Where to Find It
This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communication relates to a proposed business combination between AMID and JPE. In connection with the proposed transaction, AMID filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 containing a preliminary joint proxy statement/prospectus of AMID and JPE. The registration statement has not yet become effective. After the registration statement is declared effective by the SEC, AMID and JPE will each file with the SEC a definitive proxy statement/prospectus, and each of AMID and JPE will file other documents with respect to the proposed transaction and a definitive proxy statement/prospectus will be mailed to unitholders of JPE. SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. These documents (when they become available), and any other documents filed by AMID or JPE with the SEC, may be obtained free of charge at the SEC’s website, at www.sec.gov. In addition, investors and security holders will be able to obtain free copies of the registration statement and the proxy statement/prospectus by phone, e-mail or written request by contacting the investor relations department of AMID or JPE at the following:
American Midstream Partners, LP
2103 City West Blvd. Bldg. 4, Suite 800
Houston, TX 77042
Attention: Investor Relations
Phone: 713-815-3900

JP Energy Partners LP
600 East Las Colinas Blvd
Suite 2000
Irving, TX 75039
Attention: Investor Relations
Phone: 972-444-0300
Participants in the Solicitation
AMID, JPE and their respective directors and executive officers may be considered participants in the solicitation of proxies in connection with the proposed JPE Merger. Information regarding the directors and executive officers of AMID is contained in AMID’s Form 10-K for the year ended December 31, 2015, which was filed with the SEC on March 7, 2016. Information regarding the directors and executive officers of JPE is contained in JPE’s Form 10-K for the year ended December 31, 2015, which was filed with the SEC on February 29, 2016. Additional information regarding the interests of participants in the solicitation of proxies in connection with the proposed LP Merger will be included in the proxy statement/prospectus.
 
Item 9.01	Financial Statements and Exhibits.	
(d)     Exhibits .

EXHIBIT
NUMBER	  	 	  	DESCRIPTION	
			
99.1	  	—	  	Press Release issued by American Midstream Partners, LP dated December 7, 2016.	
			
99.2	  	—	  	Unaudited pro forma condensed consolidated financial statements.	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	 		 	AMERICAN MIDSTREAM PARTNERS, LP	
				
	 		 	By:	 	AMERICAN MIDSTREAM GP, LLC	
	 		 		 	its General Partner	
Date: December 7, 2016	 		 		 		
	 		 	By:	 	/s/ Eric Kalamaras	
	 		 	Name:	 	Eric Kalamaras	
	 		 	Title:	 	Senior Vice President and Chief Financial Officer	

INDEX TO EXHIBITS

EXHIBIT
NUMBER	  	 	  	DESCRIPTION	
			
99.1	  	—	  	Press Release issued by American Midstream Partners, LP dated December 7, 2016.	
			
99.2	  	—	  	Unaudited pro forma condensed consolidated financial statements.	

Exhibit 99.1

American Midstream Announces $300 Million Offering of Senior Notes
HOUSTON – December 7, 2016 – American Midstream Partners, LP (NYSE: AMID) (“Partnership” or “American Midstream”) announced today that it intends to offer $300 million in aggregate principal amount of senior unsecured notes due 2021, subject to market and other conditions.
The notes will be offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons, other than U.S. persons, outside of the United States pursuant to Regulation S under the Securities Act.
The net proceeds from the private placement will be deposited into escrow pending completion of the Partnership’s previously announced merger (the “Merger”) with JP Energy Partners LP (NYSE: JPEP) (“JP Energy”). Upon release of the net proceeds from escrow at the closing of the Merger, the Partnership expects to use the net proceeds from the offering to repay and terminate the revolving credit facility of JP Energy and to reduce borrowings under the Partnership’s senior secured revolving credit facility.
The Merger is expected to close during the first quarter of 2017, assuming all conditions to closing the Merger have been satisfied. The offering is not a condition to the closing of the Merger. If the closing of the Merger does not occur on or prior to June 30, 2017, or if the merger agreements regarding the Merger are terminated at any time on or prior to that date, then the escrowed funds will be applied to the mandatory redemption of the notes at a price equal to 100% of the initial offering price of the notes, plus accrued and unpaid interest to the redemption date.
The securities to be offered have not been registered under the Securities Act, or any state securities laws. Unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
This press release is being issued pursuant to Rule 135c under the Securities Act, and is neither an offer to sell nor a solicitation of an offer to purchase the notes or any other securities, and shall not constitute an offer to sell, a solicitation of an offer to buy, or a sale of, the notes or any other securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
About American Midstream Partners, LP
Houston-based American Midstream Partners, LP is a growth-oriented limited partnership formed to own, operate, develop and acquire a diversified 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. For more information about American Midstream Partners, LP, visit AmericanMidstream.com.
 
1

Investor Contact
Mark Buscovich, (713) 815-3967
mbuscovich@americanmidstream.com
Manager of Finance
Additional Information and Where to Find It
This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval with respect to the Merger. This communication relates to a proposed business combination between AMID and JPE. In connection with the proposed transaction, AMID filed with the Securities and Exchange Commission (“SEC”) a registration statement on Form S-4 containing a preliminary joint proxy statement/prospectus of AMID and JPE. The registration statement has not yet become effective. After the registration statement is declared effective by the SEC, AMID and JPE will each file with the SEC a definitive proxy statement/prospectus, and each of AMID and JPE will file other documents with respect to the proposed transaction and a definitive proxy statement/prospectus will be mailed to unitholders of JPE. WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE PROXY STATEMENT/PROSPECTUS, THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT HAVE BEEN FILED OR MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Any definitive proxy statement(s) (if and when available) will be mailed to unitholders of JP Energy. Investors and security holders will be able to obtain these materials (if and when they are available) free of charge at the SEC’s website, www.sec.gov. In addition, copies of any documents filed with the SEC may be obtained free of charge from JP Energy’s internet website for investors at http://ir.jpenergypartners.com, and from American Midstream’s investor relations website at http://www.americanmidstream.com/investor-relations. Investors and security holders may also read and copy any reports, statements and other information filed by American Midstream and JP Energy with the SEC at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 or visit the SEC’s website for further information on its public reference room.
Participation in the Solicitation of Votes
American Midstream and JP Energy and their respective directors and executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information regarding JP Energy’s directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 29, 2016. Information regarding American Midstream’s directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 7, 2016. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available.
Forward Looking Statements
This press release includes forward-looking statements. These statements relate to, among other things, the completion of the Merger and the size, timing and use of proceeds of the offering. We have used the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” “potential,” and similar terms and phrases to identify forward-looking statements in this press release. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors which are described in greater detail in our filings with the SEC. Please

see “Risk Factors” and other disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 7, 2016, our Form 10-Q for the quarter ended September 30, 2016, filed with the SEC on November 8, 2016, and our other filings with the SEC. All future written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. The forward-looking statements herein speak as of the date of this press release. We undertake no obligation to update any information contained herein or to publicly release the results of any revisions to any forward-looking statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this press release.

Exhibit 99.2
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Introduction
The unaudited pro forma condensed consolidated financial statements show the impact of the following pending or completed transactions on AMID’s consolidated financial statements for the periods indicated. References to “American Midstream,” “the Partnership,” “AMID,” “we”, “us” or “our” in this section refer to American Midstream Partners, LP, and its consolidated subsidiaries.
JP Energy Partners . On October 23, 2016, AMID entered into a merger agreement (the “JPE Merger Agreement”) with JP Energy Partners LP (“JPE”), an entity controlled by ArcLight Capital Partners, L.P. (“ArcLight Capital”), who manages ArcLight Energy Partners Fund V, L.P. (“ArcLight Fund V”), the majority owner of AMID’s general partner. Under the JPE Merger Agreement, a wholly owned subsidiary of AMID will merge with and into JPE, with JPE surviving as a wholly-owned subsidiary of AMID (the “JPE Merger”). Immediately prior to and as a condition to the JPE Merger, a wholly owned subsidiary of AMID’s general partner will merge with and into JPE Energy GP II LLC (“JPE GP”), with JPE GP surviving as a wholly owned subsidiary of AMID’s general partner (the “GP Merger” and, together with the JPE Merger, the “Mergers”).
In the JPE Merger, AMID will issue new common units in exchange for all of JPE’s outstanding common and subordinated units (collectively, the “JPE Units”). The conversion ratio applicable to a holder of JPE Units depends upon whether such JPE Units are held by ArcLight Fund V and its affiliates, which are entitled to receive 0.5225 of a common unit of AMID (an “AMID Common Unit”) for each JPE Unit held, or by unrelated parties, which are entitled to receive 0.5775 of a common unit of AMID (an “AMID Common Unit”) for each JPE Unit held. Since ArcLight Fund V and its affiliates own 50.9% of the 36.7 million JPE Units currently outstanding, ArcLight Fund V and its affiliates will receive 9.7 million new AMID Common Units and unrelated parties will receive 10.4 million new AMID Common Units.
The accompanying unaudited pro forma financial information shows the impact of the pending Mergers on AMID’s condensed consolidated balance sheet as of September 30, 2016, and on its condensed consolidated statement of operations for the nine months ended September 30, 2016 and for the years ended December 31, 2015, 2014 and 2013.
AMID and JPE are under the common control of ArcLight. Despite the legal form of the transaction whereby AMID will be acquiring JPE, as ArcLight obtained control of JPE prior to obtaining control of AMID, JPE is considered to be acquiring AMID for financial reporting purposes and will account for the Mergers as a reorganization of entities under common control. As a result, JPE will record AMID’s historical financial statements after adjustments to reflect ArcLight’s related historical cost basis in AMID. JPE will also retrospectively adjust its historical financial statements to include the operating results of AMID beginning April 15, 2013, the date upon which common control began.
Emerald . On April 25, 2016 and April 27, 2016, American Midstream Emerald, LLC (“Emerald”), a wholly-owned indirect subsidiary of AMID, entered into separate agreements with Emerald Midstream, LLC, an ArcLight affiliate, for the purchase of membership interests in the midstream entities described below (the “Emerald Acquisitions”).
On April 25, 2016, Emerald entered an agreement for the purchase of membership interests in entities that own and operate natural gas pipeline systems in and around Louisiana, Alabama, Mississippi, and the Gulf of Mexico. Pursuant to the agreement, Emerald acquired (i) 49.7% of the issued and outstanding membership interests of Destin Pipeline Company, L.L.C. (“Destin”), (ii) 16.7% of the issued and outstanding membership interests of Tri-States NGL Pipeline, L.L.C. (“Tri-States”), and (iii) 25.3% of the issued and outstanding membership interests of Wilprise Pipeline Company, L.L.C. (“Wilprise”), in exchange for approximately $183.6 million.
The Destin pipeline is a FERC-regulated, 255-mile natural gas transport system with total capacity of 1.2 Bcf/d. The system originates offshore in the Gulf of Mexico and includes connections with four producing platforms, and six producer-operated laterals, including Delta House (as defined below). The

120-mile offshore portion of the Destin system terminates at Enterprise Product Partners, LP’s (“Enterprise”) Pascagoula processing plant and is the single source of raw natural gas to the plant. The onshore portion of Destin is the sole delivery point for merchant-quality gas from the Pascagoula processing plant and extends 135 miles north in Mississippi. Destin currently serves as the primary transfer of gas flows from the Barnett and Haynesville shale plays to Florida markets through interconnections with major interstate pipelines. Contracted volumes on the Destin pipeline are based on life-of-field dedication, dedicated volumes over a given period, or interruptible volumes as capacity permits. The Destin pipeline was operated by BP plc (“BP”) through October 31, 2016, after which AMID became the operator.
The Tri-States pipeline is a FERC-regulated, 161-mile NGL pipeline and sole form of transport to Louisiana based fractionators for NGLs produced at the Pascagoula plant served by Destin, the Mobile Bay plant owned by Williams Partners, L.P., and the Mobile Bay plant owned by DCP Midstream Partners, L.P. The Tri-States pipeline terminates at the Kenner Louisiana Junction where NGLs access Enterprise’s Norco fractionation facility, the Wilprise pipeline and the Belle Rose NGL pipeline. The Tri-States pipeline was operated by BP through September 30, 2016 after which Enterprise became the operator.
The Wilprise pipeline is a FERC-regulated, 30-mile NGL pipeline that originates at the Kenner Junction and terminates in Sorrento, Louisiana where volumes flow via pipeline to a Baton Rouge fractionator operated by Energy Production Corporation. Enterprise is the majority interest holder and operator of the Wilprise pipeline.
On April 27, 2016, Emerald entered an agreement for the purchase of 66.7% of the issued and outstanding membership interests of Okeanos Gas Gathering Company, LLC (“Okeanos”), in exchange for a cash purchase price of approximately $27.4 million. The Okeanos pipeline is a 100-mile natural gas gathering system located in the Gulf of Mexico with a total capacity of 1.0 Bcf/d. The Okeanos pipeline connects two platforms and one lateral, terminating at the Destin Main Pass 260 platform in the Mississippi Canyon region of the Gulf of Mexico. Contracted volumes on the Okeanos pipeline are based on life-of-field dedication. The Okeanos pipeline was operated by BP through October 31, 2016, after which AMID became the operator.
AMID’s investments in the membership interests of Destin, Tri-States, Wilprise and Okeanos are accounted for on the equity method and were recorded at Emerald Midstream, LLC’s historical cost basis as the related transactions were between entities under common control. Such transactions were accounted for prospectively from the respective acquisition dates.
AMID funded the aggregate purchase price for the Emerald Acquisitions with the issuance of 8,571,429 newly designated Series C convertible preferred units (the “Series C Preferred Units”) representing limited partner interests in AMID and a warrant to purchase up to 800,000 common units of AMID at an exercise price of $7.25 with a combined value of $120.0 million, plus additional borrowings of $91.0 million under its credit facility. ArcLight Capital affiliates hold and participate in distributions on the Series C Preferred Units with such distributions being made in paid-in-kind Series C Preferred Units, cash, or a combination thereof at the election of the Board of Directors of our general partner.
Pinto/Delta House . On September 18, 2015, AMID completed the $162.0 million cash purchase of a 26.33% interest in Pinto Offshore Holdings, LLC (“Pinto”), which is owned by Toga Offshore, LLC, an affiliate of ArcLight Capital (the “Delta House Acquisition”). Pinto owns (i) approximately 49% of the limited liability company interests of Delta House FPS LLC and (ii) approximately 49% of the limited liability company interests of Delta House Oil and Gas Lateral LLC, which collectively own the Delta House floating production system and related pipeline infrastructure (collectively, “Delta House”). AMID funded its acquisition of the 26.33% interest in Pinto through a public offering of 7.5 million common units on September 15, 2015 which yielded net proceeds of approximately $81.6 million and $80.4 million of additional borrowings under its credit facility.
AMID’s investment in the membership interest of Pinto is accounted for on the equity method and was recorded at Toga Offshore, LLC’s historical cost basis as the related transaction was between entities under common control. Such transaction was accounted for prospectively from the acquisition date.

Pro Forma Adjustments
The accompanying unaudited pro forma condensed consolidated financial statements should be read in conjunction with (i) AMID’s unaudited condensed consolidated financial statements and the related notes thereto included in Part I, Item 2 of AMID’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016, that was filed with the Securities and Exchange Commission (“SEC”) on November 8, 2016, (ii) AMID’s audited consolidated financial statements and notes thereto included in Part IV, Item 15 of AMID’s Annual Report on Form 10-K for the year ended December 31, 2015, that was filed with the SEC on March 7, 2016, (iii) JPE’s unaudited historical condensed consolidated financial statements and notes thereto included in Part I, Item 2 of JPE’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016, filed with the SEC on November 7, 2016, and (iv) JPE’s audited consolidated financial statements and notes thereto included in Part IV, Item 15 of JPE’s Annual Report on Form 10-K for the year ended December 31, 2015, that was filed with the SEC on February 29, 2016.
The unaudited pro forma condensed consolidated balance sheet is presented to show potential financial position of AMID if the Mergers occurred on September 30, 2016. The unaudited pro forma condensed consolidated statements of operations are presented to show the potential results from operations of AMID if the Mergers occurred on January 1, 2013, and if the Emerald Acquisitions and Delta House Acquisition occurred on January 1, 2015. We derived the unaudited pro forma condensed consolidated financial statements by applying pro forma adjustments to the historical consolidated financial statements of AMID and JPE as well as the entities underlying the Emerald Acquisitions and the Delta House Acquisitions.
The pro forma adjustments are based upon currently available information and certain estimates and assumptions; therefore, actual results may differ from the pro forma adjustments. Management believes that the assumptions provide a reasonable basis for presenting the significant effects of the transactions outlined above and are supportable, directly attributable and are expected to have a continuing impact on AMID’s operating results. Additionally, the pro forma adjustments give appropriate effect to management’s assumptions and are properly applied in the unaudited pro forma condensed consolidated financial statements. The Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements provide a detailed discussion of how such adjustments were derived and presented in the unaudited pro forma condensed consolidated financial statements.
The unaudited pro forma condensed consolidated financial statements account for our acquisition, on April 25, 2016, of (i) 912.4 Class A Units of Delta House FPS LLC and (ii) 53.5 Class A Units of Delta House Oil and Gas Lateral LLC, in exchange for a cash purchase price of approximately $9.9 million, on April 25, 2016, after April 25, 2016. The unaudited pro forma condensed consolidated financial statements do not account for the following because they occurred after the execution of the Merger Agreements:
 
 	•	 	our acquisition of an additional 6.2% non-operated direct interest in Delta House (the “Third Delta House Acquisition”) on October 31, 2016, for a purchase price of approximately $48.8 million which was funded with $34.5 million in net proceeds from the issuance of 2,333,333 newly issued Series D convertible preferred units (the “Series D Issuance”) plus $14.3 million of additional borrowings under our revolving credit facility (the “Delta House Borrowings”);	
 
 	•	 	the Series D Issuance;	
 
 	•	 	the Delta House Borrowings; or	
 
 	•	 	the sale of the notes offered hereby and the application of the net proceeds therefrom following the completion of the JPE Merger.	
The unaudited pro forma condensed consolidated financial statements are presented for informational purposes only and do not purport to represent what our results of operations or financial condition would have been had the transactions to which the pro forma adjustments relate occurred on the dates indicated and they do not purport to project our results of operations or financial condition for any future period or as of any future date.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
As of September 30, 2016
(amounts in thousands, except per unit data)

 	  	JPEP
Historical	 	  	AMID
Historical	 	 	Pushdown of
ArcLight’s
Cost Basis
in AMID	 	 	AMID
Pushdown	 	 	Adjustments
to Reflect
the Merger	 	 	AMID
Consolidated	 	
Assets	  				  				 				 				 				 				
Current assets	  				  				 				 				 				 				
Cash and cash equivalents	  	$	1,768	  	  	$	4,879	  	 	$	—  	  	 	$	4,879	  	 	$	—  	  	 	$	6,647	  	
Accounts receivable, net	  	 	45,625	  	  	 	8,309	  	 	 	—  	  	 	 	8,309	  	 	 	(30,849	)(d) 	 	 	23,085	  	
Unbilled revenue	  	 	—  	  	  	 	20,126	  	 	 	—  	  	 	 	20,126	  	 	 	31,449	(d) 	 	 	51,575	  	
Accounts receivable from related parties	  	 	600	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(600	)(d) 	 	 	—  	  	
Inventory	  	 	8,827	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	8,827	  	
Prepaid expenses and other current assets	  	 	4,722	  	  	 	9,570	  	 	 	—  	  	 	 	9,570	  	 	 	—  	  	 	 	14,292	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total current assets	  	 	61,542	  	  	 	42,884	  	 	 	—  	  	 	 	42,884	  	 	 	—  	  	 	 	104,426	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-current assets	  				  				 				 				 				 				
Property, plant and equipment, net	  	 	281,316	  	  	 	699,978	  	 	 	64,497	(a) 	 	 	764,475	  	 	 	—  	  	 	 	1,045,791	  	
Goodwill	  	 	216,692	  	  	 	16,262	  	 	 	—  	  	 	 	16,262	  	 	 	—  	  	 	 	232,954	  	
Intangible assets, net	  	 	122,256	  	  	 	97,702	  	 	 	—  	  	 	 	97,702	  	 	 	—  	  	 	 	219,958	  	
Investment in unconsolidated affiliates	  	 	—  	  	  	 	284,485	  	 	 	—  	  	 	 	284,485	  	 	 	—  	  	 	 	284,485	  	
Other assets, net	  	 	2,666	  	  	 	57,816	  	 	 	—  	  	 	 	57,816	  	 	 	—  	  	 	 	60,482	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total non-current assets	  	 	622,930	  	  	 	1,156,243	  	 	 	64,497	  	 	 	1,220,740	  	 	 	—  	  	 	 	1,843,670	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	684,472	  	  	$	1,199,127	  	 	$	64,497	  	 	$	1,263,624	  	 	$	—  	  	 	$	1,948,096	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities and Partners’ Capital	  				  				 				 				 				 				
Current liabilities	  				  				 				 				 				 				
Accounts payable	  	$	37,250	  	  	$	3,878	  	 	$	—  	  	 	$	3,878	  	 	$	12,250	(c) 	 	$	53,378	  	
Accrued liabilities	  	 	16,833	  	  	 	57,466	  	 	 	—  	  	 	 	57,466	  	 	 	—  	  	 	 	74,299	  	
Current portion of long-term debt	  	 	933	  	  	 	1,351	  	 	 	—  	  	 	 	1,351	  	 	 	—  	  	 	 	2,284	  	
Accounts payable to related parties	  	 	88	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(88	)(d) 	 	 	—  	  	
Capital leases and short term debt	  	 	27	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(27	)(d) 	 	 	—  	  	
Customer deposits and advances	  	 	3,871	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(3,871	)(d) 	 	 	—  	  	
Other current liabilities	  	 	—  	  	  	 	604	  	 	 	—  	  	 	 	604	  	 	 	3,986	(d) 	 	 	4,590	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total current liabilities	  	 	59,002	  	  	 	63,299	  	 	 	—  	  	 	 	63,299	  	 	 	12,250	  	 	 	134,551	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-current liabilities	  				  				 				 				 				 				
Long-term debt	  	 	159,000	  	  	 	672,694	  	 	 	—  	  	 	 	672,694	  	 	 	—  	  	 	 	831,694	  	
Asset retirement obligations	  	 	—  	  	  	 	43,876	  	 	 	—  	  	 	 	43,876	  	 	 	—  	  	 	 	43,876	  	
Other long-term liabilities	  	 	1,003	  	  	 	57,524	  	 	 	—  	  	 	 	57,524	  	 	 	—  	  	 	 	58,527	  	
Deferred tax liability	  	 	347	  	  	 	7,102	  	 	 	—  	  	 	 	7,102	  	 	 	—  	  	 	 	7,449	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Liabilities	  	 	219,352	  	  	 	844,495	  	 	 	—  	  	 	 	844,495	  	 	 	12,250	  	 	 	1,076,097	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Convertible preferred units	  				  				 				 				 				 				
Series A convertible preferred units	  	 	—  	  	  	 	178,653	  	 	 	—  	  	 	 	178,653	  	 	 	—  	  	 	 	178,653	  	
Series C convertible preferred units	  	 	—  	  	  	 	118,229	  	 	 	—  	  	 	 	118,229	  	 	 	—  	  	 	 	118,229	  	
Equity and partners’ capital	  				  				 				 				 				 				
General partner	  	 	13,068	  	  	 	(105,483	) 	 	 	61,497	(a) 	 	 	(43,986	) 	 	 	(13,068	)(b) 	 	 	(43,986	) 	
Limited partner interests	  	 	—  	  	  	 	153,975	  	 	 	—  	  	 	 	153,975	  	 	 	465,120	(b) 	 	 	606,845	  	
	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(12,250	)(c) 	 	 	—  	  	
Common units	  	 	243,189	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(243,189	)(b) 	 	 	—  	  	
Subordinated units	  	 	208,863	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(208,863	)(b) 	 	 	—  	  	
Accumulated other comprehensive income	  	 	—  	  	  	 	73	  	 	 	—  	  	 	 	73	  	 	 	—  	  	 	 	73	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total partner’s capital	  	 	465,120	  	  	 	48,565	  	 	 	61,497	  	 	 	110,062	  	 	 	(12,250	) 	 	 	562,932	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-controlling interest	  	 	—  	  	  	 	9,185	  	 	 	3,000	(a) 	 	 	12,185	  	 	 	—  	  	 	 	12,185	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity and partner’s capital	  	 	465,120	  	  	 	57,750	  	 	 	64,497	  	 	 	122,247	  	 	 	(12,250	) 	 	 	575,117	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, equity and partners’ capital	  	$	684,472	  	  	$	1,199,127	  	 	$	64,497	  	 	$	1,263,624	  	 	$	—  	  	 	$	1,948,096	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
See accompanying notes to unaudited pro forma condensed consolidated financial statements.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the nine months ended September 30, 2016
(amounts in thousands, except per unit data)

 	  	JPEP
Historical	 	 	AMID
Historical	 	 	Pushdown of
ArcLight’s
Cost Basis
in AMID	 	 	AMID
Pushdown	 	 	AMID
Subtotal	 	 	Emerald
Acquisitions	 	 	AMID
Consolidated	 	
Revenue	  	$	351,065	  	 	$	165,220	  	 	$	—  	  	 	$	165,220	  	 	$	516,285	  	 	$	—  	  	 	$	516,285	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses	  				 				 				 				 				 				 				
Costs of sales	  	 	242,119	  	 	 	65,096	  	 	 	—  	  	 	 	65,096	  	 	 	307,215	  	 	 	—  	  	 	 	307,215	  	
Direct operating expenses	  	 	48,345	  	 	 	46,754	  	 	 	—  	  	 	 	46,754	  	 	 	95,099	  	 	 	—  	  	 	 	95,099	  	
Selling, general and administrative expenses	  	 	30,307	  	 	 	33,255	  	 	 	—  	  	 	 	33,255	  	 	 	63,562	  	 	 	—  	  	 	 	63,562	  	
Depreciation, amortization and accretion expense	  	 	34,663	  	 	 	32,015	  	 	 	3,242	(a) 	 	 	35,257	  	 	 	69,920	  	 	 	—  	  	 	 	69,920	  	
Other expenses, net	  	 	—  	  	 	 	2,213	  	 	 	—  	  	 	 	2,213	  	 	 	2,213	  	 	 	—  	  	 	 	2,213	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	355,434	  	 	 	179,333	  	 	 	3,242	  	 	 	182,575	  	 	 	538,009	  	 	 	—  	  	 	 	538,009	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain (loss) on sale of assets, net	  	 	(2,451	) 	 	 	90	  	 	 	—  	  	 	 	90	  	 	 	(2,361	) 	 	 	—  	  	 	 	(2,361	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	  	 	(6,820	) 	 	 	(14,023	) 	 	 	(3,242	) 	 	 	(17,265	) 	 	 	(24,085	) 	 	 	—  	  	 	 	(24,085	) 	
Other income (expense):	  				 				 				 				 				 				 				
Interest expense	  	 	(5,216	) 	 	 	(19,535	) 	 	 	—  	  	 	 	(19,535	) 	 	 	(24,751	) 	 	 	(1,218	)(e) 	 	 	(25,969	) 	
	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(86	)(f) 	 	 	(86	) 	
Other Income	  	 	627	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	627	  	 	 	—  	  	 	 	627	  	
Earnings in unconsolidated affiliates	  	 	—  	  	 	 	29,983	  	 	 	—  	  	 	 	29,983	  	 	 	29,983	  	 	 	6,047	(g) 	 	 	36,030	  	
	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	541	(h) 	 	 	541	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) before income tax (expense)	  	 	(11,409	) 	 	 	(3,575	) 	 	 	(3,242	) 	 	 	(6,817	) 	 	 	(18,226	) 	 	 	5,284	  	 	 	(12,942	) 	
Income tax (expense) benefit	  	 	(536	) 	 	 	(1,301	) 	 	 	—  	  	 	 	(1,301	) 	 	 	(1,837	) 	 	 	—  	  	 	 	(1,837	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) from continuing operations	  	$	(11,945	) 	 	$	(4,876	) 	 	$	(3,242	) 	 	$	(8,118	) 	 	$	(20,063	) 	 	$	5,284	  	 	$	(14,779	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Limited partners’ net income (loss) per common unit:	  				 				 				 				 				 				 				
Basic and diluted:	  				 				 				 				 				 				 				
Income (loss) from continuing operations	  	$	(0.33	) 	 	$	(0.91	) 	 				 				 				 				 	$	(0.75	) 	
	  	 	 	 	 	 	 	 	 				 				 				 				 	 	 	 	
Weighted average number of common units outstanding:	  				 				 				 				 				 				 				
Basic and diluted	  	 	36,634	  	 	 	30,979	  	 				 				 				 				 	 	51,108	(l) 	
See accompanying notes to unaudited pro forma condensed consolidated financial statements.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the year ended December 31, 2015
(amounts in thousands, except per unit data)

 	  	JPEP
Historical	 	 	AMID
Historical	 	 	Pushdown
of
ArcLight’s
Cost Basis
in AMID	 	 	AMID
Pushdown	 	 	AMID
Subtotal	 	 	Emerald
Acquisitions	 	 	Delta House
Acquisitions	 	 	AMID
Consolidated	 	
Revenue	  	$	680,585	  	 	$	236,358	  	 	$	—  	  	 	$	236,358	  	 	$	916,943	  	 	$	—  	  	 	$	—  	  	 	$	916,943	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses	  				 				 				 				 				 				 				 				
Costs of sales	  	 	527,476	  	 	 	105,883	  	 	 	—  	  	 	 	105,883	  	 	 	633,359	  	 	 	—  	  	 	 	—  	  	 	 	633,359	  	
Direct operating expenses	  	 	69,377	  	 	 	59,549	  	 	 	—  	  	 	 	59,549	  	 	 	128,926	  	 	 	—  	  	 	 	—  	  	 	 	128,926	  	
Selling, general and administrative expenses	  	 	45,383	  	 	 	27,232	  	 	 	—  	  	 	 	27,232	  	 	 	72,615	  	 	 	—  	  	 	 	—  	  	 	 	72,615	  	
Depreciation, amortization and accretion expense	  	 	46,852	  	 	 	38,014	  	 	 	4,806	(a) 	 	 	42,820	  	 	 	89,672	  	 	 	—  	  	 	 	—  	  	 	 	89,672	  	
Other expenses, net	  	 	—  	  	 	 	3,774	  	 	 	—  	  	 	 	3,774	  	 	 	3,774	  	 	 	—  	  	 	 	—  	  	 	 	3,774	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	689,088	  	 	 	234,452	  	 	 	4,806	  	 	 	239,258	  	 	 	928,346	  	 	 	—  	  	 	 	—  	  	 	 	928,346	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain (loss) on sale of assets, net	  	 	(909	) 	 	 	(3,011	) 	 	 	—  	  	 	 	(3,011	) 	 	 	(3,920	) 	 	 	—  	  	 	 	—  	  	 	 	(3,920	) 	
Loss on impairment of goodwill	  	 	(29,896	) 	 	 	(118,592	) 	 	 	—  	  	 	 	(118,592	) 	 	 	(148,488	) 	 	 	—  	  	 	 	—  	  	 	 	(148,488	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	  	 	(39,308	) 	 	 	(119,697	) 	 	 	(4,806	) 	 	 	(124,503	) 	 	 	(163,811	) 	 	 	—  	  	 	 	—  	  	 	 	(163,811	) 	
Other income (expense):	  				 				 				 				 				 				 				 				
Interest expense	  	 	(5,375	) 	 	 	(14,745	) 	 	 	—  	  	 	 	(14,745	) 	 	 	(20,120	) 	 	 	(3,390	)(e) 	 	 	(2,047	)(i) 	 	 	(25,557	) 	
	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(265	)(f) 	 	 	(307	)(j) 	 	 	(572	) 	
Other income	  	 	1,732	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1,732	  	 	 	—  	  	 	 	—  	  	 	 	1,732	  	
Earnings in unconsolidated affiliates	  	 	—  	  	 	 	8,201	  	 	 	—  	  	 	 	8,201	  	 	 	8,201	  	 	 	12,719	(g) 	 	 	5,443	(k) 	 	 	26,363	  	
	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1,639	(h) 	 	 	—  	  	 	 	1,639	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) before income tax (expense) benefit	  	 	(42,951	) 	 	 	(126,241	) 	 	 	(4,806	) 	 	 	(131,047	) 	 	 	(173,998	) 	 	 	10,703	  	 	 	3,089	  	 	 	(160,206	) 	
Income tax (expense) benefit	  	 	(754	) 	 	 	(1,134	) 	 	 	—  	  	 	 	(1,134	) 	 	 	(1,888	) 	 	 	—  	  	 	 	—  	  	 	 	(1,888	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) from continuing operations	  	$	(43,705	) 	 	$	(127,375	) 	 	$	(4,806	) 	 	$	(132,181	) 	 	$	(175,886	) 	 	$	10,703	  	 	$	3,089	  	 	$	(162,094	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Limited Partner’s net income (loss) per common unit:	  				 				 				 				 				 				 				 				
Basic and diluted:	  				 				 				 				 				 				 				 				
Income (loss) from continuing operations	  	$	(1.20	) 	 	$	(6.00	) 	 				 				 				 				 				 	$	(4.10	) 	
	  	 	 	 	 	 	 	 	 				 				 				 				 				 	 	 	 	
Weighted average number of common units outstanding:	  				 				 				 				 				 				 				 				
Basic and diluted	  	 	36,525	  	 	 	24,983	  	 				 				 				 				 				 	 	45,050	(l) 	
See accompanying notes to unaudited pro forma condensed consolidated financial statements.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the year ended December 31, 2014
(amounts in thousands, except per unit data)

 	  	JPEP
Historical	 	 	AMID
Historical	 	 	Pushdown of
ArcLight’s
Cost Basis
in AMID	 	 	AMID
Pushdown	 	 	AMID
Consolidated	 	
Revenue	  	$	726,154	  	 	$	308,400	  	 	$	—  	  	 	$	308,400	  	 	$	1,034,554	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses	  				 				 				 				 				
Costs of sales	  	 	605,682	  	 	 	197,952	  	 	 	—  	  	 	 	197,952	  	 	 	803,634	  	
Direct operating expenses	  	 	65,584	  	 	 	45,702	  	 	 	—  	  	 	 	45,702	  	 	 	111,286	  	
Selling, general and administrative expenses	  	 	46,362	  	 	 	23,103	  	 	 	—  	  	 	 	23,103	  	 	 	69,465	  	
Depreciation, amortization and accretion expense	  	 	40,230	  	 	 	28,832	  	 	 	4,357	(a) 	 	 	33,189	  	 	 	73,419	  	
Other expenses, net	  	 	—  	  	 	 	1,536	  	 	 	—  	  	 	 	1,536	  	 	 	1,536	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	757,858	  	 	 	297,125	  	 	 	4,357	  	 	 	301,482	  	 	 	1,059,340	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain (loss) on sale of assets, net	  	 	(1,137	) 	 	 	(122	) 	 	 	—  	  	 	 	(122	) 	 	 	(1,259	) 	
Loss on impairment of property, plant and equipment	  	 	—  	  	 	 	(99,892	) 	 	 	78,548	(a) 	 	 	(21,344	) 	 	 	(21,344	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	  	 	(32,841	) 	 	 	(88,739	) 	 	 	74,191	  	 	 	(14,548	) 	 	 	(47,389	) 	
Other income (expense):	  				 				 				 				 				
Interest expense	  	 	(8,981	) 	 	 	(7,577	) 	 	 	—  	  	 	 	(7,577	) 	 	 	(16,558	) 	
Loss on extinguishment of debt	  	 	(1,634	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(1,634	) 	
Other income/(expense)	  	 	8	  	 	 	(670	) 	 	 	—  	  	 	 	(670	) 	 	 	(662	) 	
Earnings in unconsolidated affiliates	  	 	—  	  	 	 	348	  	 	 	—  	  	 	 	348	  	 	 	348	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) before income tax (expense) benefit	  	 	(43,448	) 	 	 	(96,638	) 	 	 	74,191	  	 	 	(22,447	) 	 	 	(65,895	) 	
Income tax (expense) benefit	  	 	(300	) 	 	 	(557	) 	 	 	—  	  	 	 	(557	) 	 	 	(857	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) from continuing operations	  	 	(43,748	) 	 	 	(97,195	) 	 	 	74,191	  	 	 	(23,004	) 	 	 	(66,752	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Limited Partner’s net income (loss) per common unit:	  				 				 				 				 				
Basic and diluted:	  				 				 				 				 				
Income (loss) from continuing operations	  	$	(1.72	) 	 	$	(8.54	) 	 				 				 	$	(3.02	) 	
	  	 	 	 	 	 	 	 	 				 				 	 	 	 	
Weighted average number of common units outstanding:	  				 				 				 				 				
Basic and diluted	  	 	24,676	  	 	 	13,472	  	 				 				 	 	27,524	(l) 	
See accompanying notes to unaudited pro forma condensed consolidated financial statements.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the year ended December 31, 2013
(amounts in thousands, except per unit data)

 	  	JPEP
Historical	 	 	AMID
Historical	 	 	Eliminate
AMID
Activity
from
January 1 —
April 14	 	 	Pushdown of
ArcLight’s
Cost Basis
in AMID	 	 	AMID
Subtotal	 	 	AMID
Consolidated	 	
Revenue	  	$	390,869	  	 	$	294,079	  	 	$	(70,960	) 	 	$	—  	  	 	$	223,119	  	 	$	613,988	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses	  				 				 				 				 				 				
Costs of sales	  	 	276,804	  	 	 	215,053	  	 	 	(56,976	) 	 	 	—  	  	 	 	158,077	  	 	 	434,881	  	
Direct operating expenses	  	 	57,728	  	 	 	32,236	  	 	 	(8,626	) 	 	 	—  	  	 	 	23,610	  	 	 	81,338	  	
Selling, general and administrative expenses	  	 	44,488	  	 	 	19,079	  	 	 	(1,979	) 	 	 	—  	  	 	 	17,100	  	 	 	61,588	  	
Depreciation, amortization and accretion expense	  	 	30,987	  	 	 	30,002	  	 	 	(6,706	) 	 	 	2,855	(a) 	 	 	26,151	  	 	 	57,138	  	
Other expenses, net	  	 	—  	  	 	 	2,094	  	 	 	(712	) 	 	 	—  	  	 	 	1,382	  	 	 	1,382	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	410,007	  	 	 	298,464	  	 	 	(74,999	) 	 	 	2,855	  	 	 	226,320	  	 	 	636,327	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain (loss) on involuntary conversion of property, plant and equipment	  	 	—  	  	 	 	343	  	 	 	(343	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Gain (loss) on sale of assets, net	  	 	(1,492	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(1,492	) 	
Loss on impairment of property, plant and equipment	  	 	—  	  	 	 	(18,155	) 	 	 	—  	  	 	 	9,325	(a) 	 	 	(8,830	) 	 	 	(8,830	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	  	 	(20,630	) 	 	 	(22,197	) 	 	 	3,696	  	 	 	6,470	  	 	 	(12,031	) 	 	 	(32,661	) 	
Other income (expense):	  				 				 				 				 				 				
Interest expense	  	 	(8,245	) 	 	 	(9,291	) 	 	 	2,023	  	 	 	—  	  	 	 	(7,268	) 	 	 	(15,513	) 	
Other income	  	 	887	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	887	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) before income tax (expense) benefit	  	 	(27,988	) 	 	 	(31,488	) 	 	 	5,719	  	 	 	6,470	  	 	 	(19,299	) 	 	 	(47,287	) 	
Income tax (expense) benefit	  	 	(208	) 	 	 	495	  	 	 	—  	  	 	 	—  	  	 	 	495	  	 	 	287	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) from continuing operations	  	$	(28,196	) 	 	$	(30,993	) 	 	$	5,719	  	 	$	6,470	  	 	$	(18,804	) 	 	$	(47,000	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Limited Partner’s net income (loss) per common unit:	  				 				 				 				 				 				
Basic and diluted:	  				 				 				 				 				 				
Income (loss) from continuing operations	  				 	$	(7.15	) 	 				 				 				 	$	(3.17	) 	
	  				 	 	 	 	 				 				 				 	 	 	 	
Weighted average number of common units outstanding:	  				 				 				 				 				 				
Basic and diluted	  				 	 	7,525	  	 				 				 				 	 	18,931	(l) 	
See accompanying notes to unaudited pro forma condensed consolidated financial statements.

Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements of American Midstream, L.P.
Note 1 — Basis of Presentation
The accompanying unaudited pro forma condensed consolidated financial statements are based on the historical audited and unaudited consolidated financial statements and related notes of AMID, JPE and the entities underlying the Emerald and Delta House transactions.
The unaudited pro forma condensed consolidated financial statements present the impact of the JPE, Emerald and Pinto/Delta House transactions on AMID’s financial position and results of operations.
Note 2 — Pro Forma Adjustments
The following pro forma adjustments have been applied to AMID’s and JPE’s historical condensed consolidated financial statements to depict AMID’s condensed consolidated balance sheet as if the Mergers occurred on September 30, 2016, and AMID’s condensed consolidated statements of operations as if the Mergers occurred on January 1, 2013, and the Emerald Acquisitions and Delta House Acquisition had occurred on January 1, 2015. The pro forma adjustments are based on currently available information and assumptions that management believes to be appropriate in the circumstances.
(a) ArcLight Capital obtained control of the Partnership on April 15, 2013 and of JPE on June 27, 2011. Despite the legal form of the merger whereby the Partnership will be issuing units to JPE unitholders to affect the transaction, JPE is considered to be the acquirer for financial reporting purposes as ArcLight obtained control of JPE before it obtained control of the Partnership.
As both the Partnership and JPE are under the control of ArcLight Capital, the merger will be accounted for as a transaction between entities under common control. In accordance with the related accounting requirements, JPE must record its acquisition of the Partnership at ArcLight Capital’s historical cost. When ArcLight Capital obtained control of the Partnership on April 15, 2013 from a third party, a related purchase price allocation and associated pushdown of that allocation into the Partnership’s historical financial statements was not required. However, given the accounting requirements for a common control transaction, a purchase price allocation and related pushdown of that allocation into the Partnership’s financial statements will be required.
For purposes of the accompanying unaudited pro forma condensed consolidated financial statements, a purchase price allocation was performed to reflect ArcLight Capital’s acquisition of the Partnership using the acquisition method of accounting. As a result, the related purchase price was allocated to the assets acquired, liabilities assumed and a non-controlling interest based on their respective fair values as of April 15, 2013. The purchase allocation was then pushed down into the Partnership’s historical financial statements for pro forma purposes.
The purchase price allocation resulted in a net increase in property, plant and equipment of $59.7 million as of April 15, 2013, with certain assets being written up and others being written down to their respective fair values. An adjustment has been made in the accompanying unaudited pro forma condensed consolidated statements of operations for the years ended December 31, 2013, 2014 and 2015 and for the nine months ended September 30, 2016 to reflect a net increase in the Partnership’s historical depreciation expense of $2.9 million, $4.4 million. $4.8 million and $3.2 million, respectively. Additionally, for certain assets that were written down in the purchase price allocation, impairment charges originally recorded by the Partnership in 2013 and 2014 were reduced by $9.3 million and $78.5 million, respectively. Finally, an adjustment was made in the accompanying unaudited pro forma condensed consolidated balance sheet as of September 30, 2016 to increase the Partnership’s property, plant and equipment, net balance by $64.5 million and to increase general partner capital by $61.5 million and non-controlling interest by $3.0 million as a result of the pushdown of the purchase price allocation.

(b) Represents the issuance of 20.1 million Partnership common units in exchange for JPE’s outstanding common and subordinated units based on the exchange ratios specified in the merger agreement. Under the terms of that agreement, ArcLight will receive 9.7 million units while other JPE unitholders will receive 10.4 million units.
(c) Represents an increase in accounts payable and a reduction in limited partner capital to reflect estimated expenses (primarily investment adviser, legal, accounting and other professional fees) to be incurred by the Partnership in completing the JPE merger.
(d) Represents adjustments to reflect post-merger classification.
(e) Represents interest expense on $92.3 million of incremental credit facility borrowings at a weighted average rate of 3.67% for the year ended December 31, 2015 and 4.13% for the nine months ended September 30, 2016, which would have been incurred had the Emerald Acquisitions occurred on January 1, 2015. A 0.125% change in the weighted average interest rate would result in an adjustment to interest expense of $0.12 million for the year ended December 31, 2015 and $0.1 million for the nine months ended September 30, 2016.
(f) Represents amortization of deferred financing costs which would have been recognized if the Emerald Acquisitions had occurred on January 1, 2015. The Partnership incurred $1.2 million of deferred financing costs in April 2016 to increase its credit facility to fund a portion of the Emerald Acquisitions.
(g) The Partnership accounts for its investments in the entities underlying the Emerald Acquisitions on the equity method. The following table summarizes the net income for those entities for the nine months ended September 30, 2016 and the year ended December 3, 2015. The pro forma adjustment reflects the incremental earnings in unconsolidated affiliates which would have been recognized if the Emerald transactions had occurred on January 1, 2015.

 	  	 	 	 	Nine months ended
September 30, 2016	 	  	Year Ended
December 31, 2015	 	
Entity — Member Interest	  	AMID
Ownership %	 	 	100%
Net Income	 	  	AMID
Percentage	 	  	100%
Net Income	 	  	AMID
Percentage	 	
Destin	  	 	49.67	% 	 	$	6,354	  	  	$	3,155	  	  	$	10,292	  	  	$	5,111	  	
Tri-States- JV	  	 	16.67	% 	 	 	8,332	  	  	 	1,389	  	  	 	22,325	  	  	 	3,719	  	
Wilprise	  	 	25.30	% 	 	 	925	  	  	 	234	  	  	 	3,766	  	  	 	953	  	
Okeanos	  	 	66.67	% 	 	 	1,903	  	  	 	1,269	  	  	 	4,404	  	  	 	2,936	  	
	  				 				  	 	 	 	  				  	 	 	 	
Total	  				 				  	$	6,047	  	  				  	$	12,719	  	
	  				 				  	 	 	 	  				  	 	 	 	
(h) Represents the amortization of existing basis differences between the carrying value of the Partnership’s respective investments and its share of the net assets of the entities underlying the Emerald Acquisitions. The differences are being amortized on a straight-line basis over the estimated weighted average remaining useful lives of the underlying assets.
(i) Represents interest expense on $82.1 million of incremental credit facility borrowings at a weighted average rate of 3.5% for the year ended December 31, 2015, which would have been incurred had the Pinto/Delta House Acquisition occurred on January 1, 2015. A 0.125% change in the weighted average interest rate would result in an adjustment to interest expense of $0.1 million.
(j) Amortization of deferred financing costs which would have been recognized if the Pinto/ Delta House Acquisition had occurred on January 1, 2015. The Partnership incurred $1.7 million of deferred financing costs in September 2015 to increase its credit facility to fund a portion of the Pinto/ Delta House Acquisition.

(k) The Partnership accounts for its investments in Pinto/Delta House on the equity method. The following table summarizes the net income for the Delta House entities for the year ended December 31, 2015. The pro forma adjustment reflects the incremental earnings in unconsolidated affiliates which would have been recognized if the Pinto/Delta House Acquisition had occurred on January 1, 2015.

 	  	 	 	 	Twelve Months Ended
December 31, 2015	 	
Entity — Member Interest	  	AMID
Ownership %	 	 	100%
Net Income	 	  	AMID
Percentage	 	
Delta House Oil and Gas Lateral, LLC	  	 	12.90	% 	 	$	11,114	  	  	$	1,434	  	
Delta House FPS, LLC	  	 	12.90	% 	 	 	31,075	  	  	 	4,009	  	
	  				 				  	 	 	 	
Total	  				 				  	$	5,443	  	
	  				 				  	 	 	 	
(l) As of September 30, 2016, JPE had approximately 36.7 million common and subordinated units outstanding. Additionally, as of that date, ArcLight Capital owned approximately 18.7 million or 50.9% of those units while other unitholders owned approximately 18.0 million or 49.1% of those units. In order to affect the merger, the Partnership will issue .5225 of its common units for each JPE unit held by ArcLight Capital or approximately 9.7 million units and .5775 common units of its common units for each JPE unit held by other unitholders or approximately 10.4 million units. The Partnership will issue a total of 20.1 million units to affect the merger.
In order to determine the weighted average number of units outstanding for purposes of calculating limited partner earnings per unit in the accompanying unaudited pro forma condensed consolidated statements of operations, the Partnership’s historical weighted average number of units outstanding for the applicable pro forma period was added to an assumed weighted average number of JPE units outstanding after applying the applicable exchange ratios mentioned previously. JPE’s common units were not publicly traded until October 7, 2014, when it completed its initial public offering (“IPO”). Concurrent with its IPO, JPE completed an equity restructuring whereby it converted its previously outstanding equity interests into approximately 22.7 million common and subordinated units.
For purposes of calculating pro forma earnings per unit for the year ended December 31, 2013, the applicable exchange ratios were applied to the 22.7 million of JPE common and subordinated units resulting from JPE’s equity restructuring as if such restructuring had occurred on January 1, 2013, and the resulting units were assumed to be outstanding for the entire year. That amount was then added to the Partnership’s actual weighted average number of units outstanding for the period from April 15, 2013 (the date on which ArcLight Capital obtained control of the Partnership) through December 31, 2013, to arrive at the pro forma weighted average number of units outstanding for the year.
For the year ended December 31, 2014, the applicable exchange ratios were applied 1) to the 22.7 million of JPE common and subordinated units resulting from the previously mentioned equity restructuring as if such units were outstanding for the entire year, and 2) to the common units issued in connection with JPE’s IPO on October 7, 2014 as if such units were outstanding for approximately 25% of the year. The aggregate amount was then added to the Partnership’s actual weighted average number of units outstanding for the year to arrive at the pro forma weighted average number of units outstanding for the year.
For the year ended December 31, 2015 and the nine months ended September 30, 2016, the applicable exchange ratios were applied to JPE’s actual weighted average number of units outstanding for the respective periods and such amounts were added to the Partnership’s actual weighted average number of units outstanding for the respective periods to arrive at the pro forma weighted average number of units outstanding for the respective periods.

Note 3 — Limited Partner’s Net Income (Loss) per Common Unit
Net income (loss) is allocated to AMID’s general partner and limited partners in accordance with their respective ownership percentages, after giving effect to contractual distributions on the Series A and Series C convertible preferred units, limited partner units and general partner units, including incentive distribution rights, if applicable. Basic and diluted net income (loss) per limited partner unit is calculated by dividing limited partners’ interest in net income (loss) by the weighted average number of limited partner units outstanding during the period.
AMID computes earnings per unit using the two-class method, which requires that securities that meet the definition of a participating security be considered for inclusion in the computation of basic earnings per unit. Under the two-class method, earnings per unit is calculated as if all of the earnings for the period were distributed under the terms of AMID’s partnership agreement, regardless of whether the general partner has discretion over the amount of distributions to be made in any particular period, whether those earnings would actually be distributed during a particular period from an economic or practical perspective, or whether the general partner has other legal or contractual limitations on its ability to pay distributions that would prevent it from distributing all earnings for a particular period.
The two-class method does not impact AMID’s overall net income (loss) or other financial results; however, in periods in which aggregate net income exceeds AMID’s aggregate distributions for such period, it will have the impact of reducing net income (loss) per limited partner unit. This result occurs as a larger portion of AMID’s aggregate earnings, as if distributed, is allocated to the incentive distribution rights of the general partner, even though we make distributions on the basis of available cash and not earnings. In periods in which our aggregate net income does not exceed our aggregate distributions for the period, the two-class method does not have any impact on our calculation of earnings per limited partner unit. We have no dilutive securities and therefore basic and diluted net income (loss) per common unit are the same.

Note About Non-GAAP Financial Measure
Adjusted EBITDA is a non-GAAP financial measure. It has important limitations as an analytical tool because it excludes some, but not all, items that reflect the most directly comparable GAAP financial measures. We compensate for the limitations of this non-GAAP financial measure as an analytical tool by reviewing the nearest comparable GAAP financial measure, understanding the differences between the measures and incorporating these data points into management’s decision-making process.
Investors should not consider Adjusted EBITDA in isolation or as a substitute for or more meaningful than our results as reported under GAAP. Adjusted EBITDA may be defined differently by other companies in our industry. Our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
Adjusted EBITDA is a non-GAAP financial measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others, to assess: the financial performance of our assets without regard to financing methods, capital structure or historical cost basis; the ability of our assets to generate cash flow to make cash distributions to our unitholders and our general partner; our operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing or capital structure; and the attractiveness of capital projects and acquisitions and the overall rates of return on alternative investment opportunities.
We define Adjusted EBITDA as net income (loss) attributable to the combined company, plus interest expense, income tax expense, depreciation, amortization and accretion expense attributable to the combined company, certain non-cash charges such as non-cash equity compensation expense, unrealized (gains) losses on derivatives, debt issuance costs paid during the period, distributions from investments in unconsolidated affiliates, transaction expenses and selected charges that are unusual or nonrecurring, less, earnings in unconsolidated affiliates, gains (losses) on sale of assets, net and selected gains that are unusual or nonrecurring. The GAAP measure most directly comparable to our performance measure Adjusted EBITDA is Net income (loss) attributable to the combined company.
The following table reconciles the non-GAAP financial measure of Adjusted EBITDA used by our management to Net income (loss) attributable to the combined company, its most directly comparable GAAP measure, for each of the three years ended December 31, 2015, 2014 and 2013, and for the nine months ended September 30, 2016:

 	  	Pro Forma (unaudited)	 	
 	  	Nine Months	 	 	 	 	 	 	 	 	 	 	
 	  	Ended	 	 	 	 	 	 	 	 	 	 	
 	  	September 30,	 	 	Year Ended December 31,	 	
 	  	2016	 	 	2015	 	 	2014	 	 	2013	 	
 	  	(in thousands)	 	
Reconciliation of Net income (loss) attributable to the Partnership to Adjusted EBITDA:	  				 				 				 				
Net income (loss) Pro Forma from continuing operations	  	$	(14,779	) 	 	$	(162,094	) 	 	$	(66,752	) 	 	$	(47,000	) 	
Add:	  				 				 				 				
Depreciation, amortization and accretion	  				 				 				 				
expense	  	 	69,436	  	 	 	89,672	  	 	 	73,419	  	 	 	57,138	  	
Interest expense	  	 	23,374	  	 	 	25,015	  	 	 	15,414	  	 	 	14,072	  	
Loss on extinguishment of debt	  	 	—  	  	 	 	—  	  	 	 	1,634	  	 	 	—  	  	
Debt issuance costs paid	  	 	3,987	  	 	 	2,238	  	 	 	3,841	  	 	 	2,113	  	
Unrealized (gain) loss on derivatives, net	  	 	2,072	  	 	 	3,128	  	 	 	13,167	  	 	 	593	  	
Early settlement of commodity derivatives	  	 	—  	  	 	 	8,745	  	 	 	—  	  	 	 	—  	  	
Non-cash equity compensation expense / Unit-based compensation	  	 	3,606	  	 	 	5,080	  	 	 	3,284	  	 	 	2,884	  	
Transaction expenses	  	 	9,145	  	 	 	3,303	  	 	 	5,560	  	 	 	5,273	  	
Income tax expense	  	 	1,837	  	 	 	1,707	  	 	 	524	  	 	 	(639	) 	
Impairment on property, plant and equipment	  	 	—  	  	 	 	—  	  	 	 	21,344	  	 	 	8,830	  	
Loss on impairment of noncurrent assets held for sale	  	 	—  	  	 	 	—  	  	 	 	673	  	 	 	2,400	  	
Loss on impairment of goodwill	  	 	—  	  	 	 	148,488	  	 	 	—  	  	 	 	—  	  	
Distributions from unconsolidated affiliates	  	 	62,797	  	 	 	20,568	  	 	 	1,980	  	 	 	—  	  	
Non-cash inventory costing adjustment	  	 	227	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
General Partner contribution for cost reimbursement	  	 	5,000	  	 	 	5,830	  	 	 	—  	  	 	 	—  	  	
Deduct:	  				 				 				 				
Earnings in unconsolidated affiliates	  	 	36,571	  	 	 	28,002	  	 	 	348	  	 	 	—  	  	
Net cash payments for commodity derivatives settled during the period	  	 	1,082	  	 	 	14,821	  	 	 	1,071	  	 	 	209	  	
COMA income	  	 	341	  	 	 	841	  	 	 	943	  	 	 	843	  	
Straight-line amortization of put costs	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	119	  	
OPEB plan net periodic benefit	  	 	13	  	 	 	14	  	 	 	45	  	 	 	73	  	
Gain (loss) on sale of assets, net	  	 	(2,361	) 	 	 	(4,070	) 	 	 	(1,344	) 	 	 	(1,567	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	  	$	131,056	  	 	$	112,072	  	 	$	73,025	  	 	$	45,987