DCP Midstream, LP (NYSE: DCP), or DCP, today reported its financial
results for the fourth quarter and year ended December 31,
2018, and announced its 2019 guidance.
HIGHLIGHTS
- Reported net income attributable to partners of $94 million and
$298 million for the quarter and year ended December 31, 2018,
or $0.28 and $0.61 per basic and diluted limited partner unit,
respectively.
- Delivered strong 2018 results with distributable cash flow
("DCF") above the high end of guidance.
- Generated DCF of $138 million and $684 million for the quarter
and year ended December 31, 2018, resulting in a distribution
coverage ratio of 0.90 and 1.11 times, respectively.
- Reported adjusted EBITDA of $245 million and $1,092 million for
the quarter and year ended December 31, 2018,
respectively.
- Strong NGL pipeline throughput volumes increased approximately
20% from the fourth quarter of 2017, driven by record volumes on
Southern Hills and Sand Hills.
- Sand Hills capacity expanded to 485 MBbls/d in the fourth
quarter of 2018.
- Achieved record wellhead volumes in the DJ Basin in the fourth
quarter of 2018, up approximately 20% from the fourth quarter of
2017.
- Announced sale of wholesale propane business in January 2019,
with proceeds to support funding our strategic capital
program.
FOURTH QUARTER 2018 SUMMARY FINANCIAL
RESULTS
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
(Millions, except per unit
amounts) |
|
|
|
|
|
|
|
|
|
Net income attributable
to partners |
$ |
94 |
|
$ |
60 |
|
$ |
298 |
|
$ |
229 |
|
Net income per limited
partner unit - basic and diluted |
$ |
0.28 |
|
$ |
0.10 |
|
$ |
0.61 |
|
$ |
0.43 |
|
Adjusted EBITDA(1) |
$ |
245 |
|
$ |
280 |
|
$ |
1,092 |
|
$ |
1,017 |
|
Distributable cash
flow(1) |
$ |
138 |
|
$ |
176 |
|
$ |
684 |
|
$ |
643 |
|
(1) This press release includes the following financial
measures not presented in accordance with U.S. generally accepted
accounting principles, or GAAP: adjusted EBITDA, distributable cash
flow and adjusted segment EBITDA. Each such non-GAAP financial
measure is defined below under “Non-GAAP Financial Information”,
and each is reconciled to its most directly comparable GAAP
financial measure under “Reconciliation of Non-GAAP Financial
Measures” in schedules at the end of this press release.
CEO'S PERSPECTIVE
“We delivered strong 2018 results, including exceeding our
guidance for distributable cash flow, distribution coverage, and
bank leverage, while successfully executing our long term capital
allocation strategy,” said Wouter van Kempen, chairman, president,
and CEO. “Our proactive approach to optimizing our operations and
balancing our value chain continues to produce strong financial
results, better service for our customers, and record industry
safety performance. We are stepping into 2019 on solid ground with
a balanced portfolio, focus on fiscal discipline, and growing
cashflows.”
2019 OUTLOOK |
|
|
($ in Millions) |
Forecast Ranges |
Net income attributable
to partners |
$335 |
- |
$465 |
Forecasted adjusted
EBITDA(1) |
$1,145 |
- |
$1,285 |
Forecasted
distributable cash flow(1) |
$700 |
- |
$800 |
Maintenance capital
expenditures |
$90 |
- |
$110 |
Growth capital
expenditures |
$600 |
- |
$800 |
(1) This press release includes the following financial
measures not presented in accordance with U.S. generally accepted
accounting principles, or GAAP: adjusted EBITDA, distributable cash
flow, forecasted adjusted EBITDA and forecasted distributable cash
flow. Each such non-GAAP financial measure is defined below under
“Non-GAAP Financial Information”, and each is reconciled to its
most directly comparable GAAP financial measure under
“Reconciliation of Non-GAAP Financial Measures” in schedules at the
end of this press release.
DCP estimates the following 2019 annualized commodity
sensitivities, including the effects of hedging:
Commodity |
Price
range |
Per unitchange |
After hedge impact($ in Millions) |
NGLs ($/gal) |
$0.60-$0.70 |
$0.01 |
$3 |
Natural Gas
($/MMBtu) |
$2.80-$3.10 |
$0.10 |
$7 |
Crude Oil ($/Bbl) |
$53-$63 |
$1.00 |
$4 |
DCP's 2019 guidance expectations include the following
assumptions:
- Expect to self-fund a portion of growth capital expenditures
with excess coverage and potential divestitures
- No planned common equity issuances
- Lower costs
- Higher volumes on Sand and Southern Hills associated with
expansions placed into service during 2018
- Higher Guadalupe margins
- Full year Mewbourn 3 and partial year O’Connor 2 adjusted
EBITDA
- Lower commodity prices
- Ethane rejection of 60 - 70 MBbls/d
GROWTH UPDATE
Permian Logistics Growth
- Increased Sand Hills NGL pipeline capacity to 485 MBbls/d in
the fourth quarter of 2018.
- The approximately 2.0 Bcf/d Gulf Coast Express ("GCX") gas
takeaway pipeline is fully subscribed and construction is
underway. GCX is expected to be placed in service in the
fourth quarter of 2019.
DJ Basin Logistics and G&P Growth
- Adding NGL takeaway to the DJ Basin with Southern Hills
pipeline extension via the White Cliffs pipeline. The initial
capacity out of the DJ Basin is expected to be 90 MBbls/d,
expandable to 120 MBbls/d, with an anticipated fourth quarter 2019
in-service date.
- Expanding Front Range by 100 MBbls/d and Texas Express by 90
MBbls/d, adding NGL takeaway from the DJ Basin. Both expansions are
expected to go into service in the third quarter of 2019.
- DCP holds an option to acquire a 33% interest in the Cheyenne
Connector, exercisable after FERC approval for the project, with an
anticipated fourth quarter 2019 in-service date.
- Construction of the 300 MMcf/d O'Connor 2 facility, comprised
of processing capacity of 200 MMcf/d and up to 100 MMcf/d of
bypass, is progressing well. The O'Connor 2 plant is expected to be
in-service in the second quarter of 2019, and associated bypass is
expected to be in-service in the third quarter of 2019.
- The Bighorn program is under development with focus on adding
additional gas processing and bypass infrastructure to the DJ
Basin.
Fractionation Growth
- DCP holds an option to acquire a 30% ownership interest in two
150 MBbls/d fractionators to be constructed within Phillips 66's
Sweeny Hub, exercisable at the in-service date, which is expected
to be in late 2020.
COMMON UNIT DISTRIBUTIONS
On January 23, 2019, DCP announced a quarterly common unit
distribution of $0.78 per limited partner unit. DCP generated
distributable cash flow of $138 million and $684 million for the
quarter and year ended December 31, 2018, respectively.
Distributions declared were $154 million for the fourth quarter of
2018 and $618 million for the year ended December 31, 2018,
resulting in a distribution coverage ratio of 0.90 and 1.11 times
for the quarter and year ended December 31, 2018,
respectively.
FOURTH QUARTER 2018 OPERATING RESULTS BY BUSINESS
SEGMENT
Logistics and Marketing
Logistics and Marketing Segment net income attributable to
partners for the three months ended December 31, 2018 and 2017 was
$152 million and $88 million, respectively.Adjusted segment EBITDA
increased to $148 million for the three months ended December 31,
2018, from $114 million for the three months ended December 31,
2017, reflecting higher equity earnings and distributions driven by
increasing volumes on Sand Hills and Southern Hills, and higher gas
marketing margins associated with Guadalupe, partially offset by
losses from realized cash settlements related to DCP's commodity
derivative program and impacts of the Sand Hills third party line
strike.
Gathering and Processing
Gathering and Processing Segment net income attributable to
partners for the three months ended December 31, 2018 and 2017 was
$89 million and $132 million, respectively.
Adjusted segment EBITDA decreased to $170 million for the three
months ended December 31, 2018, from $252 million for the three
months ended December 31, 2017, reflecting increased operating
costs associated with higher reliability and maintenance spending,
lower distributions from Discovery, and lower Permian results
including impacts of the Sand Hills third party line strike. These
decreases were partially offset by DJ Basin growth and higher
margins in the Midcontinent.
CAPITALIZATION, LIQUIDITY AND FINANCING
Debt and Credit Facilities
DCP has two credit facilities with up to $1.6 billion of total
capacity. Proceeds from these facilities can be used for
working capital requirements and other general partnership purposes
including growth and acquisitions.
- DCP has a $1.4 billion senior unsecured revolving credit
agreement that matures on December 6, 2022, or the Credit
Agreement. As of December 31, 2018, total available capacity
under the Credit Agreement was $1,036 million net of $351 million
of outstanding borrowings and $13 million of letters of
credit.
- DCP has an accounts receivable securitization facility that
provides up to $200 million of borrowing capacity at LIBOR market
index rates plus a margin through August 2019. As of
December 31, 2018, DCP had $200 million of outstanding
borrowings under the accounts receivable securitization facility
included in current debt.
On January 18, 2019, DCP issued $325 million of
additional aggregate principal amount to our existing $500 million
5.375% Senior Notes due July 2025. The proceeds will be used for
general partnership purposes including the funding of capital
expenditures and repayment of outstanding indebtedness under the
Credit Agreement.
As of December 31, 2018, DCP had $5,326 million of total
consolidated principal debt outstanding, including $525 million of
current maturities. The total debt outstanding includes $550
million of junior subordinated notes which are excluded from
debt pursuant to DCP's Credit Agreement leverage ratio
calculation. For the year ended December 31, 2018, DCP's
leverage ratio was approximately 3.8 times. The effective interest
rate on DCP's overall debt position, as of December 31, 2018,
was 5.2%.
Issuance of Preferred Equity
In October, 2018, DCP issued 4,400,000 of
7.950% Series C Preferred Units, at a price
of $25 per unit. DCP used the net proceeds of $106
million from this issuance for general partnership purposes,
including funding capital expenditures and the repayment of
outstanding indebtedness under the Credit Agreement.
CAPITAL EXPENDITURES AND INVESTMENTS
During the three months and year ended December 31, 2018, DCP
had expansion capital expenditures and equity investments totaling
$226 million and $856 million, respectively, and maintenance
capital expenditures totaling $30 million and $99 million,
respectively.
EARNINGS CALL
DCP will host a conference call webcast tomorrow, February 12,
at 11:00 a.m. ET, to discuss its fourth quarter and full year 2018
earnings and 2019 guidance. The live audio webcast of the
conference call and presentation slides can be accessed through the
Investors section on the DCP website at www.dcpmidstream.com and
the conference call can be accessed by dialing (844) 233-0113 in
the United States or (574) 990-1008 outside the United States. The
conference confirmation number is 8359947. An audio webcast replay,
presentation slides and transcript will also be available by
accessing the Investors section on the DCP website at
www.dcpmidstream.com.
NON-GAAP FINANCIAL INFORMATION
This press release and the accompanying financial schedules
include the following non-GAAP financial measures: adjusted EBITDA,
distributable cash flow and adjusted segment EBITDA, forecasted
adjusted EBITDA and forecasted distributable cash flow. The
accompanying schedules provide reconciliations of these non-GAAP
financial measures to their most directly comparable GAAP financial
measures. DCP's non-GAAP financial measures should not be
considered in isolation or as an alternative to its financial
measures presented in accordance with GAAP, including operating
revenues, net income or loss attributable to partners, net cash
provided by or used in operating activities or any other measure of
liquidity or financial performance presented in accordance with
GAAP as a measure of operating performance, liquidity or ability to
service debt obligations and make cash distributions to
unitholders. The non-GAAP financial measures presented by DCP may
not be comparable to similarly titled measures of other companies
because they may not calculate their measures in the same
manner.
DCP defines adjusted EBITDA as net income or loss attributable
to partners adjusted for (i) distributions from unconsolidated
affiliates, net of earnings, (ii) depreciation and amortization
expense, (iii) net interest expense, (iv) noncontrolling interest
in depreciation and income tax expense, (v) unrealized gains and
losses from commodity derivatives, (vi) income tax expense or
benefit, (vii) impairment expense and (viii) certain other non-cash
items. Adjusted EBITDA further excludes items of income or loss
that we characterize as unrepresentative of our ongoing
operations.
The commodity derivative non-cash losses and gains result from
the marking to market of certain financial derivatives used by us
for risk management purposes that we do not account for under the
hedge method of accounting. These non-cash losses or gains may or
may not be realized in future periods when the derivative contracts
are settled, due to fluctuating commodity prices.
Adjusted EBITDA is used as a supplemental liquidity and
performance measure and adjusted segment EBITDA is used as a
supplemental performance measure by DCP's management and by
external users of its financial statements, such as investors,
commercial banks, research analysts and others to assess:
- financial performance of DCP's assets without regard to
financing methods, capital structure or historical cost basis;
- DCP's operating performance and return on capital as compared
to those of other companies in the midstream energy industry,
without regard to financing methods or capital structure;
- viability and performance of acquisitions and capital
expenditure projects and the overall rates of return on investment
opportunities;
- performance of DCP's business excluding non-cash commodity
derivative gains or losses; and
- in the case of Adjusted EBITDA, the ability of DCP's assets to
generate cash sufficient to pay interest costs, support its
indebtedness, make cash distributions to its unitholders and
general partner, and pay maintenance capital expenditures.
DCP defines adjusted segment EBITDA for each segment as segment
net income or loss attributable to partners adjusted for (i)
distributions from unconsolidated affiliates, net of earnings, (ii)
depreciation and amortization expense, (iii) net interest expense,
(iv) noncontrolling interest in depreciation and income tax
expense, (v) unrealized gains and losses from commodity
derivatives, (vi) income tax expense or benefit, (vii) impairment
expense and (viii) certain other non-cash items. Adjusted segment
EBITDA further excludes items of income or loss that we
characterize as unrepresentative of our ongoing operations for that
segment.
DCP defines distributable cash flow as adjusted EBITDA less
maintenance capital expenditures, net of reimbursable projects,
interest expense, cumulative cash distributions earned by the
Series A, Series B and Series C Preferred Units (collectively the
"Preferred Limited Partnership Units") and certain other items.
Maintenance capital expenditures are cash expenditures made to
maintain DCP's cash flows, operating capacity or earnings capacity.
These expenditures add on to or improve capital assets owned,
including certain system integrity, compliance and safety
improvements. Maintenance capital expenditures also include certain
well connects, and may include the acquisition or construction of
new capital assets. Income attributable to preferred units
represent cash distributions earned by the Preferred Limited
Partnership Units. Cash distributions to be paid to the
holders of the Preferred Limited Partnership Units, assuming a
distribution is declared by DCP's board of directors, are not
available to common unit holders. Non-cash mark-to-market of
derivative instruments is considered to be non-cash for the purpose
of computing distributable cash flow because settlement will not
occur until future periods, and will be impacted by future changes
in commodity prices and interest rates. DCP compares the
distributable cash flow it generates to the cash distributions it
expects to pay to its partners. Using this metric, DCP computes its
distribution coverage ratio. Distributable cash flow is used as a
supplemental liquidity and performance measure by DCP's management
and by external users of its financial statements, such as
investors, commercial banks, research analysts and others, to
assess DCP's ability to make cash distributions to its unitholders
and its general partner.
ABOUT DCP MIDSTREAM, LP
DCP Midstream, LP (NYSE: DCP) is a Fortune 500 midstream master
limited partnership headquartered in Denver, Colorado, with a
diversified portfolio of gathering, processing, logistics and
marketing assets. DCP is one of the largest natural gas liquids
producers and marketers and one of the largest natural gas
processors in the U.S. The owner of DCP’s general partner is a
joint venture between Enbridge and Phillips 66. For more
information, visit the DCP Midstream, LP website at
www.dcpmidstream.com.
CAUTIONARY STATEMENTS
This press release may contain or incorporate by reference
forward-looking statements as defined under the federal securities
laws regarding DCP Midstream, LP, including projections, estimates,
forecasts, plans and objectives. Although management believes that
expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will
prove to be correct. In addition, these statements are subject to
certain risks, uncertainties and other assumptions that are
difficult to predict and may be beyond DCP's control. If any of
these risks or uncertainties materialize, or if underlying
assumptions prove incorrect, DCP's actual results may vary
materially from what management forecasted, anticipated, estimated,
projected or expected.
The key risk factors that may have a direct bearing on DCP's
results of operations and financial condition are described in
detail in the "Risk Factors" section of DCP's most recently filed
annual report and subsequently filed quarterly reports with the
Securities and Exchange Commission. Investors are encouraged to
closely consider the disclosures and risk factors contained in
DCP's annual and quarterly reports filed from time to time with the
Securities and Exchange Commission. The forward looking statements
contained herein speak as of the date of this announcement. DCP
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
securities laws. Information contained in this press release is
unaudited and subject to change.
Investors or Analysts:
Irene Lofland, 303-605-1822
DCP MIDSTREAM,
LPFINANCIAL RESULTS ANDSUMMARY
FINANCIAL DATA(Unaudited)
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions, except per unit
amounts) |
Sales of
natural gas, NGLs and condensate |
$ |
2,366 |
|
$ |
2,209 |
|
$ |
9,374 |
|
$ |
7,850 |
|
Transportation, processing and other |
|
118 |
|
|
178 |
|
|
489 |
|
|
652 |
|
Trading and
marketing gains (losses), net |
|
123 |
|
|
(50 |
) |
|
(41 |
) |
|
(40 |
) |
|
Total operating
revenues |
|
2,607 |
|
|
2,337 |
|
|
9,822 |
|
|
8,462 |
|
Purchases
and related costs |
|
(1,995 |
) |
|
(1,946 |
) |
|
(8,019 |
) |
|
(6,885 |
) |
Operating
and maintenance expense |
|
(217 |
) |
|
(148 |
) |
|
(760 |
) |
|
(661 |
) |
Depreciation and amortization expense |
|
(99 |
) |
|
(97 |
) |
|
(388 |
) |
|
(379 |
) |
General and
administrative expense |
|
(77 |
) |
|
(88 |
) |
|
(276 |
) |
|
(290 |
) |
Asset
impairments |
|
(145 |
) |
|
— |
|
|
(145 |
) |
|
(48 |
) |
Gain on
sale of assets, net |
|
— |
|
|
— |
|
|
— |
|
|
34 |
|
Other
(expense) income, net |
|
(4 |
) |
|
4 |
|
|
(11 |
) |
|
(11 |
) |
|
Total operating costs
and expenses |
|
(2,537 |
) |
|
(2,275 |
) |
|
(9,599 |
) |
|
(8,240 |
) |
Operating
income |
|
70 |
|
|
62 |
|
|
223 |
|
|
222 |
|
Loss from
financing activities |
|
— |
|
|
— |
|
|
(19 |
) |
|
— |
|
Interest
expense, net |
|
(66 |
) |
|
(70 |
) |
|
(269 |
) |
|
(289 |
) |
Earnings
from unconsolidated affiliates |
|
92 |
|
|
69 |
|
|
370 |
|
|
303 |
|
Income tax
(expense) benefit |
|
(1 |
) |
|
3 |
|
|
(3 |
) |
|
(2 |
) |
Net income
attributable to noncontrolling interests |
|
(1 |
) |
|
(4 |
) |
|
(4 |
) |
|
(5 |
) |
|
Net income attributable
to partners |
|
94 |
|
|
60 |
|
|
298 |
|
|
229 |
|
Series A
preferred partner's interest in net income |
|
(9 |
) |
|
(4 |
) |
|
(37 |
) |
|
(4 |
) |
Series B
preferred partner's interest in net income |
|
(3 |
) |
|
— |
|
|
(8 |
) |
|
— |
|
Series C
preferred partner's interest in net income |
|
(2 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
General
partner's interest in net income |
|
(41 |
) |
|
(42 |
) |
|
(164 |
) |
|
(164 |
) |
Net income
allocable to limited partners |
|
39 |
|
|
14 |
|
|
87 |
|
|
61 |
|
|
|
|
|
|
|
|
|
|
|
Net income
per limited partner unit — basic and diluted |
$ |
0.28 |
|
$ |
0.10 |
|
$ |
0.61 |
|
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average limited partner units outstanding — basic and
diluted |
|
143.3 |
|
|
143.3 |
|
|
143.3 |
|
|
143.3 |
|
|
|
December 31, |
|
December 31, |
|
2018 |
|
2017 |
|
|
|
|
|
|
(Millions) |
|
|
|
|
|
Cash and cash
equivalents |
$ |
1 |
|
$ |
156 |
|
Other current
assets |
|
1,270 |
|
|
1,166 |
|
Property, plant and
equipment, net |
|
9,135 |
|
|
8,983 |
|
Other long-term
assets |
|
3,860 |
|
|
3,573 |
|
Total assets |
$ |
14,266 |
|
$ |
13,878 |
|
|
|
|
|
|
Current
liabilities |
$ |
1,379 |
|
$ |
1,488 |
|
Current debt |
|
525 |
|
|
— |
|
Long-term debt |
|
4,782 |
|
|
4,707 |
|
Other long-term
liabilities |
|
283 |
|
|
245 |
|
Partners' equity |
|
7,268 |
|
|
7,408 |
|
Noncontrolling
interests |
|
29 |
|
|
30 |
|
Total liabilities and
equity |
$ |
14,266 |
|
$ |
13,878 |
|
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions) |
Reconciliation of Non-GAAP Financial
Measures: |
|
|
|
|
|
|
|
|
Net income
attributable to partners |
$ |
94 |
|
$ |
60 |
|
$ |
298 |
|
$ |
229 |
|
|
Interest expense,
net |
|
66 |
|
|
70 |
|
|
269 |
|
|
289 |
|
|
Depreciation,
amortization and income tax expense, net ofnoncontrolling
interests |
|
100 |
|
|
93 |
|
|
390 |
|
|
380 |
|
|
Distributions from
unconsolidated affiliates, net of earnings |
|
24 |
|
|
28 |
|
|
71 |
|
|
64 |
|
|
Asset impairments |
|
145 |
|
|
— |
|
|
145 |
|
|
48 |
|
|
Loss from financing
activities |
|
— |
|
|
— |
|
|
19 |
|
|
— |
|
|
Other non-cash
charges |
|
3 |
|
|
— |
|
|
8 |
|
|
13 |
|
|
Gain on sale of assets,
net |
|
— |
|
|
— |
|
|
— |
|
|
(34 |
) |
|
Non-cash commodity
derivative mark-to-market |
|
(187 |
) |
|
29 |
|
|
(108 |
) |
|
28 |
|
Adjusted
EBITDA |
$ |
245 |
|
$ |
280 |
|
$ |
1,092 |
|
$ |
1,017 |
|
|
Interest expense,
net |
|
(66 |
) |
|
(70 |
) |
|
(269 |
) |
|
(289 |
) |
|
Maintenance capital
expenditures, net of noncontrollinginterest portion and
reimbursable projects |
|
(30 |
) |
|
(26 |
) |
|
(99 |
) |
|
(90 |
) |
|
Preferred unit
distributions *** |
|
(14 |
) |
|
(4 |
) |
|
(47 |
) |
|
(4 |
) |
|
Other, net |
|
3 |
|
|
(4 |
) |
|
7 |
|
|
9 |
|
Distributable cash flow |
$ |
138 |
|
$ |
176 |
$ |
684 |
|
$ |
643 |
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities |
$ |
121 |
|
$ |
212 |
|
$ |
662 |
|
$ |
896 |
|
|
Interest expense,
net |
|
66 |
|
|
70 |
|
|
269 |
|
|
289 |
|
|
Net changes in
operating assets and liabilities |
|
244 |
|
|
(20 |
) |
|
278 |
|
|
(173 |
) |
|
Non-cash commodity
derivative mark-to-market |
|
(187 |
) |
|
29 |
|
|
(108 |
) |
|
28 |
|
|
Other, net |
|
1 |
|
|
(11 |
) |
|
(9 |
) |
|
(23 |
) |
Adjusted
EBITDA |
$ |
245 |
|
$ |
280 |
|
$ |
1,092 |
|
$ |
1,017 |
|
|
Interest expense,
net |
|
(66 |
) |
|
(70 |
) |
|
(269 |
) |
|
(289 |
) |
|
Maintenance capital
expenditures, net of noncontrollinginterest portion and
reimbursable projects |
|
(30 |
) |
|
(26 |
) |
|
(99 |
) |
|
(90 |
) |
|
Preferred unit
distributions *** |
|
(14 |
) |
|
(4 |
) |
|
(47 |
) |
|
(4 |
) |
|
Other, net |
|
3 |
|
|
(4 |
) |
|
7 |
|
|
9 |
|
Distributable cash flow |
$ |
138 |
|
$ |
176 |
|
$ |
684 |
|
$ |
643 |
|
*** Represents cumulative cash distributions earned by the
Series A, B and C Preferred Units, assuming distributions are
declared by DCP's board of directors.
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURESSEGMENT FINANCIAL RESULTS AND OPERATING
DATA (Unaudited)
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions, except as indicated) |
|
(Millions, except as indicated) |
Logistics and Marketing Segment: |
|
|
|
|
|
|
|
|
Financial
results: |
|
|
|
|
|
|
|
|
Segment net
income attributable to partners |
$ |
152 |
|
$ |
88 |
|
$ |
509 |
|
$ |
366 |
|
|
Non-cash commodity
derivative mark-to-market |
|
(26 |
) |
|
9 |
|
|
4 |
|
|
4 |
|
|
Depreciation and
amortization expense |
|
4 |
|
|
3 |
|
|
15 |
|
|
14 |
|
|
Distributions from
unconsolidated affiliates, net of earnings |
|
18 |
|
|
14 |
|
|
49 |
|
|
40 |
|
|
Other charges |
|
— |
|
|
— |
|
|
— |
|
|
9 |
|
Adjusted
segment EBITDA |
$ |
148 |
|
$ |
114 |
|
$ |
577 |
|
$ |
433 |
|
|
|
|
|
|
|
|
|
|
|
Operating
and financial data: |
|
|
|
|
|
|
|
|
|
NGL pipelines
throughput (MBbls/d) |
|
601 |
|
|
503 |
|
|
582 |
|
|
460 |
|
|
NGL fractionator
throughput (MBbls/d) |
|
55 |
|
|
47 |
|
|
58 |
|
|
48 |
|
|
Operating and
maintenance expense |
$ |
11 |
|
$ |
10 |
|
$ |
47 |
|
$ |
41 |
|
|
|
|
|
|
|
|
|
|
Gathering and Processing Segment: |
|
|
|
|
|
|
|
|
Financial
results: |
|
|
|
|
|
|
|
|
Segment net
income attributable to partners |
$ |
89 |
|
$ |
132 |
|
$ |
374 |
|
$ |
454 |
|
|
Non-cash commodity
derivative mark-to-market |
|
(161 |
) |
|
20 |
|
|
(112 |
) |
|
24 |
|
|
Depreciation and
amortization expense, net ofnoncontrolling interest |
|
88 |
|
|
86 |
|
|
345 |
|
|
342 |
|
|
Asset impairments |
|
145 |
|
|
— |
|
|
145 |
|
|
48 |
|
|
Gain on sale of assets,
net |
|
— |
|
|
— |
|
|
— |
|
|
(34 |
) |
|
Distributions from
unconsolidated affiliates, net of earnings |
|
6 |
|
|
14 |
|
|
22 |
|
|
24 |
|
|
Other charges |
|
3 |
|
|
— |
|
|
7 |
|
|
4 |
|
Adjusted
segment EBITDA |
$ |
170 |
|
$ |
252 |
|
$ |
781 |
|
$ |
862 |
|
|
|
|
|
|
|
|
|
|
|
Operating
and financial data: |
|
|
|
|
|
|
|
|
|
Natural gas wellhead
(MMcf/d) |
|
4,930 |
|
|
4,603 |
|
|
4,769 |
|
|
4,531 |
|
|
NGL gross production
(MBbls/d) |
|
403 |
|
|
406 |
|
|
413 |
|
|
375 |
|
|
Operating and
maintenance expense |
$ |
200 |
|
$ |
133 |
|
$ |
692 |
|
$ |
602 |
|
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
|
2018 |
|
2018 |
|
|
|
|
|
|
|
(Millions, except as indicated) |
Reconciliation
of Non-GAAP Financial Measures: |
|
|
|
|
|
Distributable cash
flow |
$ |
138 |
|
$ |
684 |
|
Distributions declared
** |
$ |
154 |
|
$ |
618 |
|
Distribution coverage
ratio - declared |
|
0.90 |
x |
|
1.11 |
x |
|
|
|
|
|
|
|
Distributable cash
flow |
$ |
138 |
|
$ |
684 |
|
Distributions paid
*** |
$ |
155 |
|
$ |
658 |
|
Distribution coverage
ratio - paid |
|
0.89 |
x |
|
1.04 |
x |
|
|
Quarter Ended March 31,
2018 |
|
Quarter Ended June 30,
2018 |
|
Quarter Ended September 30,
2018 |
|
Quarter EndedDecember
31,2018 |
|
Twelve
MonthsEndedDecember
31,2018 |
|
|
(Millions, except as indicated) |
|
|
|
|
|
|
|
|
|
|
|
Distributable cash
flow |
$ |
171 |
|
$ |
166 |
|
$ |
209 |
|
$ |
138 |
|
$ |
684 |
|
Distributions declared
** |
$ |
155 |
|
$ |
154 |
|
$ |
155 |
|
$ |
154 |
|
$ |
618 |
|
Distribution coverage
ratio - declared |
|
1.10x |
|
|
1.08x |
|
|
1.35x |
|
|
0.90x |
|
|
1.11x |
|
|
|
|
|
|
|
|
|
|
|
|
Distributable cash
flow |
$ |
171 |
|
$ |
166 |
|
$ |
209 |
|
$ |
138 |
|
$ |
684 |
|
Distributions paid
*** |
$ |
194 |
|
$ |
155 |
|
$ |
154 |
|
$ |
155 |
|
$ |
658 |
|
Distribution coverage
ratio - paid |
|
0.88x |
|
|
1.07x |
|
|
1.36x |
|
|
0.89x |
|
|
1.04x |
|
** There were no IDR givebacks reflected in distributions
declared for the three and twelve months ended December 31,
2018.
*** Distributions paid reflect the payment of $40 million of IDR
givebacks previously withheld during the three months ended March
31, 2018.
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
December 31, 2019 |
|
|
|
Low |
|
High |
|
|
|
Forecast |
|
Forecast |
|
|
|
|
|
|
|
|
|
(Millions) |
Reconciliation of Non-GAAP Measures: |
|
|
|
Forecasted
net income attributable to partners |
$ |
335 |
|
|
$ |
465 |
|
|
|
Distributions from
unconsolidated affiliates, net of earnings |
65 |
|
|
75 |
|
|
|
Interest expense, net
of interest income |
290 |
|
|
310 |
|
|
|
Income taxes |
5 |
|
|
5 |
|
|
|
Depreciation and
amortization, net of noncontrolling interests |
410 |
|
|
420 |
|
|
|
Non-cash commodity
derivative mark-to-market |
40 |
|
|
10 |
|
Forecasted
adjusted EBITDA |
1,145 |
|
|
1,285 |
|
|
|
Interest expense, net
of interest income |
(290 |
) |
|
(310 |
) |
|
|
Maintenance capital
expenditures, net of reimbursable projects |
(90 |
) |
|
(110 |
) |
|
|
Preferred unit
distributions *** |
(60 |
) |
|
(60 |
) |
|
|
Other, net |
(5 |
) |
|
(5 |
) |
Forecasted
distributable cash flow |
$ |
700 |
|
|
$ |
800 |
|
*** Represents cumulative cash distributions earned by the
Series A, B and C Preferred Units, assuming distributions are
declared by DCP's board of directors.
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