DCP Midstream, LP (NYSE: DCP), or DCP, today reported its financial
results for three and nine months ended September 30, 2018.
HIGHLIGHTS
- Reported net income attributable to partners of $81 million and
$204 million for the three and nine months ended September 30,
2018, or $0.18 and $0.33 per basic and diluted limited partner
unit, respectively.
- Generated distributable cash flow of $209 million and $546
million for the three and nine months ended September 30, 2018,
resulting in a distribution coverage ratio of 1.35 and 1.18 times,
respectively.
- Reported adjusted EBITDA of $309 million and $847 million for
the three and nine months ended September 30, 2018,
respectively.
- Expecting to exceed the high end of 2018 Adjusted EBITDA and
DCF guidance ranges.
- Strong NGL pipeline throughput volumes increased ~35% from the
third quarter of 2017, driven by record volumes on Sand Hills and
Southern Hills.
- Sand Hills capacity expanded to 440 MBbls/d at the end of the
third quarter 2018 and is expected to be at 485 MBbls/d by the end
of 2018. Southern Hills capacity increased to 190+ MBbls/d at the
end of the third quarter of 2018 via innovative optimization.
- Natural gas wellhead volumes within DCP's Gathering and
Processing segment increased ~10% from the third quarter of 2017
across its footprint, driven by Midcontinent, Eagle Ford, and DJ
Basin.
- 200 MMcf/d Mewbourn 3 plant at full capacity about a month
after going into service on August 1, 2018.
THIRD QUARTER 2018 SUMMARY FINANCIAL
RESULTS
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
(Unaudited) |
|
|
(Millions, except per unit
amounts) |
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to partners |
$ |
81 |
|
$ |
(20 |
) |
$ |
204 |
|
$ |
169 |
|
Net income
(loss) per limited partner unit - basic and diluted |
$ |
0.18 |
|
$ |
(0.41 |
) |
$ |
0.33 |
|
$ |
0.33 |
|
Adjusted
EBITDA(1) |
$ |
309 |
|
$ |
276 |
|
$ |
847 |
|
$ |
737 |
|
Distributable cash flow(1) |
$ |
209 |
|
$ |
187 |
|
$ |
546 |
|
$ |
467 |
|
(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
“Our team delivered outstanding third quarter results, while
successfully executing a long-term capital allocation strategy
focused on disciplined growth and driving cash flows,” said Wouter
van Kempen, president, chairman and CEO of DCP Midstream. “As an
outcome of our dedicated focus on operational excellence and
optimizing our fully integrated portfolio, we are excited to
announce that we expect to exceed the high end of our 2018 EBITDA
and DCF guidance ranges.”
GROWTH UPDATE
DJ Basin Growth Projects
- Placed the 200 MMcf/d Mewbourn 3 plant into service August 1,
2018.
- 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 and expected to be in-service in the second
quarter of 2019.
- Awaiting outcome of Colorado Setback Proposition 112 prior to
making a final investment decision on the Bighorn facility.
- Adding NGL takeaway to the DJ Basin with Southern Hills
pipeline extension via the White Cliffs NGL 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.
Permian Growth Projects
- Increased Sand Hills NGL pipeline capacity to 440 MBbls/d at
the end of the third quarter of 2018, with expansion to 485 MBbls/d
expected by the end 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.
Fractionation Growth Project
- 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 AND IDR GIVEBACK
On October 23, 2018, DCP announced a quarterly common unit
distribution of $0.78 per limited partner unit. This distribution
remains unchanged from the previous quarter.
DCP generated distributable cash flow of $209 million and $546
million for the three and nine months ended September 30, 2018,
respectively. Distributions declared were $155 million for the
third quarter of 2018 and $464 million for the nine months ended
September 30, 2018. The distribution coverage ratio was 1.35 and
1.18 times for the three and nine months ended September 30, 2018,
respectively.
Phillips 66 and Enbridge, Inc. (Owners) have agreed, if
necessary, to reduce incentive distributions payable to DCP's
general partner under the partnership agreement (the "IDR
giveback") of up to $100 million annually through 2019 to target an
approximate 1.0 times annual distribution coverage ratio, which
provides downside protection for limited partners. During the
three and nine months ended September 30, 2018 no IDR giveback was
withheld from the distribution declared.
THIRD QUARTER 2018 OPERATING RESULTS BY BUSINESS
SEGMENT
Gathering and Processing
Gathering and Processing Segment net income attributable to
partners for the three months ended September 30, 2018 and 2017 was
$96 million and $29 million, respectively.
Adjusted segment EBITDA decreased to $210 million for the three
months ended September 30, 2018, from $220 million for the three
months ended September 30, 2017, reflecting lower realized cash
settlements related to DCP's commodity derivative program,
increased operating costs and lower production volumes from two
offshore wells from DCP's Discovery equity method investment which
drove lower distributions. These decreases were partially offset by
higher commodity prices, higher volumes in the Midcontinent, Eagle
Ford in the South region and growth related to DCP’s DJ Basin in
the North region.
Logistics and Marketing
Logistics and Marketing Segment net income attributable to
partners for the three months ended September 30, 2018 and 2017 was
$148 million and $99 million, respectively.
Adjusted segment EBITDA increased to $166 million for the three
months ended September 30, 2018, from $124 million for the three
months ended September 30, 2017, reflecting higher equity earnings
and distributions from Sand Hills primarily due to continued volume
ramp associated with NGL production growth from the Permian basin
and ongoing capacity expansions of Sand Hills, and higher gas
marketing margins. These increases were partially offset by lower
realized cash settlements related to DCP's commodity derivative
program.
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.
- In August 2018, DCP entered into an accounts receivable
securitization facility (the “Securitization Facility”) that
provides up to $200 million of borrowing capacity at LIBOR market
index rates plus a margin through August 2019. As of
September 30, 2018, DCP had $200 million of outstanding
borrowings under the Securitization Facility included in current
debt.
- DCP has a $1.4 billion senior unsecured revolving credit
agreement that matures on December 6, 2022, or the Credit
Agreement. As of September 30, 2018, total available capacity
under the Credit Agreement was $1,242 million net of $145 million
of outstanding borrowings and $13 million of letters of
credit.
On July 17, 2018, DCP issued $500 million of
5.375% Senior Notes due July 2025. The proceeds of these notes were
used to redeem DCP's $450 million 9.750% Senior Notes due March
2019 and for general partnership purposes.
As of September 30, 2018, DCP had $5,120 million of total
consolidated principal debt outstanding, including $525 million of
current. 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
third quarter ended September 30, 2018, DCP's leverage ratio
was approximately 3.6 times. The effective interest rate on DCP's
overall debt position, as of September 30, 2018, was 5.2%
percent.
Issuance of Preferred Equity
In October, 2018, DCP issued 4,400,000 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
its revolving credit agreement.
CAPITAL EXPENDITURES AND INVESTMENTS
During the three and nine months ended September 30, 2018, DCP
had expansion capital expenditures and equity investments totaling
$281 million and $630 million, respectively, and maintenance
capital expenditures totaling $20 million and $69 million,
respectively.
DCP's 2018 plan includes maintenance capital expenditures
between $100 million and $120 million. DCP is updating its
expansion capital expenditure range to between $825 million and
$900 million.
EARNINGS CALL
DCP will host a conference call webcast tomorrow, November 6, at
10:00 a.m. ET, to discuss its third quarter 2018 results. 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
4697508. A replay of the audio webcast 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. 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, LP |
FINANCIAL RESULTS AND |
SUMMARY FINANCIAL DATA |
(Unaudited) |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
(Millions, except per unit
amounts) |
Sales of
natural gas, NGLs and condensate |
$ |
2,682 |
|
$ |
1,936 |
|
$ |
7,008 |
|
$ |
5,641 |
|
Transportation, processing and other |
|
133 |
|
|
162 |
|
|
371 |
|
|
474 |
|
Trading and
marketing (losses) gains, net |
|
(56 |
) |
|
(43 |
) |
|
(164 |
) |
|
10 |
|
|
Total operating
revenues |
|
2,759 |
|
|
2,055 |
|
|
7,215 |
|
|
6,125 |
|
Purchases
and related costs |
|
(2,327 |
) |
|
(1,695 |
) |
|
(6,024 |
) |
|
(4,939 |
) |
Operating
and maintenance expense |
|
(196 |
) |
|
(168 |
) |
|
(543 |
) |
|
(513 |
) |
Depreciation and amortization expense |
|
(98 |
) |
|
(94 |
) |
|
(289 |
) |
|
(282 |
) |
General and
administrative expense |
|
(70 |
) |
|
(69 |
) |
|
(199 |
) |
|
(202 |
) |
Asset
impairments |
|
— |
|
|
(48 |
) |
|
— |
|
|
(48 |
) |
Gain on
sale of assets, net |
|
— |
|
|
— |
|
|
— |
|
|
34 |
|
Other
expense, net |
|
(2 |
) |
|
— |
|
|
(7 |
) |
|
(15 |
) |
|
Total operating costs
and expenses |
|
(2,693 |
) |
|
(2,074 |
) |
|
(7,062 |
) |
|
(5,965 |
) |
Operating
income (loss) |
|
66 |
|
|
(19 |
) |
|
153 |
|
|
160 |
|
Loss from
financing activities |
|
(19 |
) |
|
— |
|
|
(19 |
) |
|
— |
|
Interest
expense, net |
|
(69 |
) |
|
(73 |
) |
|
(203 |
) |
|
(219 |
) |
Earnings
from unconsolidated affiliates |
|
104 |
|
|
74 |
|
|
278 |
|
|
234 |
|
Income tax
expense |
|
— |
|
|
(2 |
) |
|
(2 |
) |
|
(5 |
) |
Net income
attributable to noncontrolling interests |
|
(1 |
) |
|
— |
|
|
(3 |
) |
|
(1 |
) |
|
Net income (loss)
attributable to partners |
|
81 |
|
|
(20 |
) |
|
204 |
|
|
169 |
|
Series A
preferred partner's interest in net income |
|
(10 |
) |
|
— |
|
|
(28 |
) |
|
— |
|
Series B
preferred partner's interest in net income |
|
(3 |
) |
|
— |
|
|
(5 |
) |
|
— |
|
General
partner's interest in net income |
|
(42 |
) |
|
(39 |
) |
|
(123 |
) |
|
(122 |
) |
Net income
(loss) allocable to limited partners |
$ |
26 |
|
$ |
(59 |
) |
$ |
48 |
|
$ |
47 |
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per limited partner unit — basic and diluted |
$ |
0.18 |
|
$ |
(0.41 |
) |
$ |
0.33 |
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average limited partner units outstanding — basic and
diluted |
|
143.3 |
|
|
143.3 |
|
|
143.3 |
|
|
143.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
2018 |
|
2017 |
|
|
|
|
|
(Millions) |
|
|
|
|
|
Cash and cash
equivalents |
$ |
1 |
|
$ |
156 |
|
Other current
assets |
|
1,525 |
|
|
1,166 |
|
Property, plant and
equipment, net |
|
9,163 |
|
|
8,983 |
|
Other long-term
assets |
|
3,796 |
|
|
3,573 |
|
Total assets |
$ |
14,485 |
|
$ |
13,878 |
|
|
|
|
|
|
Current
liabilities |
$ |
1,808 |
|
$ |
1,488 |
|
Current debt |
|
525 |
|
|
— |
|
Long-term debt |
|
4,575 |
|
|
4,707 |
|
Other long-term
liabilities |
|
301 |
|
|
245 |
|
Partners' equity |
|
7,246 |
|
|
7,408 |
|
Noncontrolling
interests |
|
30 |
|
|
30 |
|
Total liabilities and
equity |
$ |
14,485 |
|
$ |
13,878 |
|
|
|
|
|
|
|
|
|
DCP MIDSTREAM, LP |
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
(Unaudited) |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
(Millions) |
Reconciliation of Non-GAAP Financial
Measures: |
|
|
|
|
|
|
|
|
Net income
(loss) attributable to partners |
$ |
81 |
|
$ |
(20 |
) |
$ |
204 |
|
$ |
169 |
|
|
Interest expense |
|
69 |
|
|
73 |
|
|
203 |
|
|
219 |
|
|
Depreciation,
amortization and income tax expense, net of noncontrolling
interests |
|
97 |
|
|
96 |
|
|
290 |
|
|
287 |
|
|
Distributions from
unconsolidated affiliates, net of earnings |
|
28 |
|
|
19 |
|
|
47 |
|
|
36 |
|
|
Asset impairments |
|
— |
|
|
48 |
|
|
— |
|
|
48 |
|
|
Loss from financing
activities |
|
19 |
|
|
— |
|
|
19 |
|
|
— |
|
|
Other non-cash
charges |
|
2 |
|
|
1 |
|
|
5 |
|
|
13 |
|
|
Gain on sale of assets,
net |
|
— |
|
|
— |
|
|
— |
|
|
(34 |
) |
|
Non-cash commodity
derivative mark-to-market |
|
13 |
|
|
59 |
|
|
79 |
|
|
(1 |
) |
Adjusted
EBITDA |
$ |
309 |
|
$ |
276 |
|
$ |
847 |
|
$ |
737 |
|
|
Interest expense |
|
(69 |
) |
|
(73 |
) |
|
(203 |
) |
|
(219 |
) |
|
Maintenance capital
expenditures, net of noncontrolling interest portion and
reimbursable projects |
|
(20 |
) |
|
(20 |
) |
|
(69 |
) |
|
(64 |
) |
|
Preferred unit
distributions *** |
|
(13 |
) |
|
— |
|
|
(33 |
) |
|
— |
|
|
Other, net |
|
2 |
|
|
4 |
|
|
4 |
|
|
13 |
|
Distributable cash flow |
$ |
209 |
|
$ |
187 |
$ |
546 |
|
$ |
467 |
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities |
$ |
210 |
|
$ |
324 |
|
$ |
541 |
|
$ |
684 |
|
|
Interest expense |
|
69 |
|
|
73 |
|
|
203 |
|
|
219 |
|
|
Net changes in
operating assets and liabilities |
|
21 |
|
|
(175 |
) |
|
34 |
|
|
(153 |
) |
|
Non-cash commodity
derivative mark-to-market |
|
13 |
|
|
59 |
|
|
79 |
|
|
(1 |
) |
|
Other, net |
|
(4 |
) |
|
(5 |
) |
|
(10 |
) |
|
(12 |
) |
Adjusted
EBITDA |
$ |
309 |
|
$ |
276 |
|
$ |
847 |
|
$ |
737 |
|
|
Interest expense |
|
(69 |
) |
|
(73 |
) |
|
(203 |
) |
|
(219 |
) |
|
Maintenance capital
expenditures, net of noncontrolling interest portion and
reimbursable projects |
|
(20 |
) |
|
(20 |
) |
|
(69 |
) |
|
(64 |
) |
|
Preferred unit
distributions *** |
|
(13 |
) |
|
— |
|
|
(33 |
) |
|
— |
|
|
Other, net |
|
2 |
|
|
4 |
|
|
4 |
|
|
13 |
|
Distributable cash flow |
$ |
209 |
|
$ |
187 |
|
$ |
546 |
|
$ |
467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*** Represents cumulative cash distributions earned by the
Series A and B Preferred Units, assuming distributions are declared
by DCP's board of directors.
|
DCP MIDSTREAM, LP |
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
SEGMENT FINANCIAL RESULTS AND OPERATING
DATA |
(Unaudited) |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
(Millions, except as indicated) |
|
(Millions, except as indicated) |
Gathering and Processing Segment: |
|
|
|
|
|
|
|
|
Financial
results: |
|
|
|
|
|
|
|
|
Segment net
income attributable to partners |
$ |
96 |
|
$ |
29 |
|
$ |
285 |
|
$ |
322 |
|
|
Non-cash commodity
derivative mark-to-market |
|
21 |
|
|
51 |
|
|
49 |
|
|
4 |
|
|
Depreciation and
amortization expense, net of noncontrolling interest |
|
85 |
|
|
85 |
|
|
257 |
|
|
256 |
|
|
Asset impairments |
|
— |
|
|
48 |
|
|
— |
|
|
48 |
|
|
Gain on sale of assets,
net |
|
— |
|
|
— |
|
|
— |
|
|
(34 |
) |
|
Distributions from
unconsolidated affiliates, net of earnings |
|
7 |
|
|
6 |
|
|
16 |
|
|
10 |
|
|
Other charges |
|
1 |
|
|
1 |
|
|
4 |
|
|
4 |
|
Adjusted
segment EBITDA |
$ |
210 |
|
$ |
220 |
|
$ |
611 |
|
$ |
610 |
|
|
|
|
|
|
|
|
|
|
|
Operating
and financial data: |
|
|
|
|
|
|
|
|
|
Natural gas wellhead
(MMcf/d) |
|
4,881 |
|
|
4,460 |
|
|
4,715 |
|
|
4,508 |
|
|
NGL gross production
(MBbls/d) |
|
439 |
|
|
376 |
|
|
416 |
|
|
365 |
|
|
Operating and
maintenance expense |
$ |
175 |
|
$ |
154 |
|
$ |
492 |
|
$ |
469 |
|
|
|
|
|
|
|
|
|
|
|
Logistics and Marketing Segment: |
|
|
|
|
|
|
|
|
Financial
results: |
|
|
|
|
|
|
|
|
Segment net
income attributable to partners |
$ |
148 |
|
$ |
99 |
|
$ |
357 |
|
$ |
278 |
|
|
Non-cash commodity
derivative mark-to-market |
|
(8 |
) |
|
8 |
|
|
30 |
|
|
(5 |
) |
|
Depreciation and
amortization expense |
|
5 |
|
|
4 |
|
|
11 |
|
|
11 |
|
|
Distributions from
unconsolidated affiliates, net of earnings |
|
21 |
|
|
13 |
|
|
31 |
|
|
26 |
|
|
Other charges |
|
— |
|
|
— |
|
|
— |
|
|
9 |
|
Adjusted
segment EBITDA |
$ |
166 |
|
$ |
124 |
|
$ |
429 |
|
$ |
319 |
|
|
|
|
|
|
|
|
|
|
|
Operating
and financial data: |
|
|
|
|
|
|
|
|
|
NGL pipelines
throughput (MBbls/d) |
|
616 |
|
|
462 |
|
|
575 |
|
|
447 |
|
|
NGL fractionator
throughput (MBbls/d) |
|
60 |
|
|
49 |
|
|
59 |
|
|
48 |
|
|
Operating and
maintenance expense |
$ |
14 |
|
$ |
9 |
|
$ |
36 |
|
$ |
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DCP MIDSTREAM, LP |
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
(Unaudited) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2018 |
|
2018 |
|
|
|
|
|
(Millions, except as indicated) |
Reconciliation
of Non-GAAP Financial Measures: |
|
|
|
|
|
Distributable cash
flow |
$ |
209 |
|
|
$ |
546 |
|
|
Distributions declared
** |
$ |
155 |
|
|
$ |
464 |
|
|
Distribution coverage
ratio - declared |
|
1.35 |
|
x |
|
1.18 |
|
x |
|
|
|
|
|
|
|
Distributable cash
flow |
$ |
209 |
|
|
$ |
546 |
|
|
Distributions paid
*** |
$ |
154 |
|
|
$ |
503 |
|
|
Distribution coverage
ratio - paid |
|
1.36 |
|
x |
|
1.09 |
|
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
QuarterEndedDecember
31,2017 |
|
QuarterEndedMarch
31,2018 |
|
QuarterEndedJune
30,2018 |
|
QuarterEndedSeptember
30,2018 |
|
Twelve
MonthsEndedSeptember
30,2018 |
|
|
(Millions, except as indicated) |
|
|
|
|
|
|
|
|
|
|
|
Distributable cash
flow |
$ |
176 |
|
$ |
171 |
|
$ |
166 |
|
$ |
209 |
|
$ |
722 |
|
Distributions declared
** |
$ |
194 |
|
$ |
155 |
|
$ |
154 |
|
$ |
155 |
|
$ |
658 |
|
Distribution coverage
ratio - declared |
|
0.91x |
|
|
1.10x |
|
|
1.08x |
|
|
1.35x |
|
|
1.10x |
|
|
|
|
|
|
|
|
|
|
|
|
Distributable cash
flow |
$ |
176 |
|
$ |
171 |
|
$ |
166 |
|
$ |
209 |
|
$ |
722 |
|
Distributions declared
without IDR giveback |
$ |
154 |
|
$ |
155 |
|
$ |
154 |
|
$ |
155 |
|
$ |
618 |
|
Distribution coverage
ratio - declared without IDR giveback |
|
1.14x |
|
|
1.10x |
|
|
1.08x |
|
|
1.35x |
|
|
1.17x |
|
|
|
|
|
|
|
|
|
|
|
|
Distributable cash
flow |
$ |
176 |
|
$ |
171 |
|
$ |
166 |
|
$ |
209 |
|
$ |
722 |
|
Distributions paid
*** |
$ |
155 |
|
$ |
194 |
|
$ |
155 |
|
$ |
154 |
|
$ |
658 |
|
Distribution coverage
ratio - paid |
|
1.14x |
|
|
0.88x |
|
|
1.07x |
|
|
1.36x |
|
|
1.10x |
|
|
|
|
|
|
|
|
|
|
|
|
** There were no IDR givebacks reflected in distributions
declared for the three, nine and twelve months ended September 30,
2018.
*** Distributions paid reflect the payment of $40 million of IDR
givebacks previously withheld during the three months ended March
31, 2018.
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