For the year ended December 31, 2013, the Partnership reported gross margin of $76.6 million, an increase of $27.9 million or 57.3 percent, compared to $48.7 million in the same period in the prior year. The increase in gross margin for the three months and year ended December 31, 2013 was primarily due to higher gross margin in the Partnership’s Transmission segment as a result of the April 2013 acquisition of the High Point system in addition to the December 2013 acquisition of Blackwater Midstream Holdings, LLC, a developer and operator of terminal storage facilities (“Blackwater”). High Point and Blackwater were acquired from affiliates of ArcLight Capital Partners, LLC (“ArcLight”), which controls the Partnership’s general partner. Accordingly, the acquisitions are accounted for as transactions under common control pursuant to applicable accounting standards, which requires that the Partnership’s financial statements be recast to include both acquisitions as of April 15, 2013. The increase in gross margin was also partially attributable to higher gross margin in the Gathering and Processing segment due to improved condensate production. The higher gross margin was partially offset by lower margins associated with the Partnership’s percent-of-proceeds and elective processing agreements in the Gathering and Processing segment.

Business Highlights

Blackwater Acquisition

On December 17, 2013, the Partnership completed the acquisition of Blackwater for approximately $60 million. Blackwater operates 1.3 million barrels of storage capacity across four terminal sites located in Westwego, Louisiana; Brunswick, Georgia; Harvey, Louisiana; andSalisbury, Maryland. These terminal sites provide storage services to support various commercial customers, including commodity brokers, refiners, and chemical manufacturers, to store a range of products, including crude oil, bunker fuel, distillates, chemicals and agricultural products.

In conjunction with the acquisition, the Partnership issued 2,568,712 common units representing limited partner interests in the Partnership in a public offering at a price to the public of $22.47per common unit for net proceeds of $54.9 million.

PVA Acquisition

On January 31, 2014, the Partnership acquired, from Penn Virginia Corporation (“PVA”), a natural gas gathering system and associated facilities located in the Eagle Ford shale inGonzales and Lavaca Counties, Texas (the “Lavaca System”)for approximately $100 million. In conjunction with the PVA acquisition, the Partnership issued 3,400,000 common units representing limited partner interests in a public offering at a price to the public of $26.75 per common unit for net proceeds of $87.3 million. In addition, the Partnership issued the Partnership’s general partner 1,168,225 Series B PIK Units representing series B limited partnership interests in the Partnership. Net proceeds from the public offering and Series B PIK Units were $117.3 million.

Executive Commentary

“2013 was a transformational year for American Midstream and we finished the year with strong fourth quarter and full-year financial results,” stated Steve Bergstrom, Executive Chairman, President and Chief Executive Officer. “Our EBITDA and DCF for the fourth quarter and full year are record results for American Midstream and are directly related to steps we took to strengthen the Partnership for long-term growth. During 2013, ArcLight completed a strategic investment in our general partner, we added scale and incremental cash flow to the Partnership with the High Point and Blackwater acquisitions, increased distributable cash flow available to common unitholders through the equity restructuring, and increased distributions per unit by nearly 5 percent while also significantly improving distribution coverage. We also strengthened our management team, implemented meaningful improvements to our existing operations, and improved our leverage ratio.

“We recently completed two equity offerings to finance the December acquisition of Blackwater and the January acquisition of Eagle Ford midstream assets from Penn Virginia. These acquisitions diversify our cash flow, provide significant growth opportunities, and increase our fee-based gross margin. Importantly, in conjunction with the acquisitions we announced our intent to recommend to our Board that we increase our quarterly distributions for both the first quarter and the third quarter 2014.

“As we look ahead, we are focused on making 2014 a productive year for the Partnership with the goal of significantly increasing the size and scale of American Midstream, diversifying geographically into some of the rapidly growing basins in the US, and delivering long-term sustainable distribution growth to our unitholders.”