Today, DCP Midstream, LP (NYSE: DCP) reported its financial results
for the three and nine months ended September 30, 2019 and
announced the signing with its general partner and closing of a
transaction to eliminate all incentive distribution rights (IDRs)
and general partner economic interests in DCP.
HIGHLIGHTS
- Signed and closed a $1.53 billion IDR elimination transaction
today, creating alignment among all stakeholders and reducing
future cost of capital.
- Net (loss) income attributable to partners of $(178) million
and $16 million for the three and nine months ended
September 30, 2019, respectively.
- Distributable cash flow (DCF) of $190 million and
$587 million for the three and nine months ended
September 30, 2019, resulting in a distribution coverage ratio
of 1.23 times and 1.27 times, respectively.
- Adjusted EBITDA of $300 million and $904 million for
the three and nine months ended September 30, 2019,
respectively.
- Increased Logistics and Marketing Adjusted EBITDA by 20%
compared to the third quarter of 2018, driven by new volumes from
the recently in-service Gulf Coast Express (GCX), Guadalupe, NGL
marketing efforts, and Sand Hills volumes.
- Gathering and Processing results driven by record DJ Basin
volumes and continued strong Permian and Eagle Ford
performance.
- Placed the 200 MMcf/d DJ Basin O'Connor 2 plant in service in
August.
- Gulf Coast Express pipeline placed in service in September,
adding approximately 2 Bcf/d of gas takeaway from the Delaware
basin.
- Exercised an increased ownership option of 50% in the Cheyenne
Connector in October, following FERC approval.
THIRD QUARTER 2019 SUMMARY FINANCIAL
RESULTS
|
Three Months
Ended |
|
Nine Months
Ended |
September
30, |
|
September
30, |
|
2019 |
|
|
2018 |
|
2019 |
|
|
2018 |
|
(Unaudited) |
|
(Millions, except per unit amounts) |
|
|
|
|
|
|
|
|
Net (loss) income attributable to partners |
$ |
(178 |
) |
|
$ |
81 |
|
$ |
16 |
|
|
$ |
204 |
Net (loss) income per limited
partner unit - basic and diluted |
$ |
(1.59 |
) |
|
$ |
0.18 |
|
$ |
(1.02 |
) |
|
$ |
0.33 |
Adjusted EBITDA(1) |
$ |
300 |
|
|
$ |
309 |
|
$ |
904 |
|
|
$ |
847 |
Distributable cash
flow(1) |
$ |
190 |
|
|
$ |
209 |
|
$ |
587 |
|
|
$ |
546 |
(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 are excited to announce that in addition to strong third
quarter results from our diversified portfolio, we have closed a
transaction to eliminate our IDRs, enhancing DCP’s value
proposition as a premier, fully integrated midstream service
provider," said Wouter van Kempen, chairman, president, and CEO.
“This transaction is strategically timed with our great
year-to-date performance, and we are well positioned for continued
long-term success and increasing cash flows given our slate of
predominately fee-based growth projects, including our now 50%
ownership interest in the Cheyenne Connector."
DCP ELIMINATION OF INCENTIVE DISTRIBUTION
RIGHTSDCP signed with its general partner and closed a
transaction to eliminate all general partner economic interests in
DCP and incentive distribution rights (IDRs) in exchange for 65
million newly issued DCP common units. DCP’s general partner is
equally owned by Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Phillips 66
(NYSE: PSX). The newly issued DCP common units have a total equity
value of approximately $1.53 billion based on a 20-day
volume-weighted average price of $23.62 as of the markets close on
November 5, 2019. Using current total general partner
distributions, the transaction value represents a multiple of
9.0x.
DCP’s general partner now holds a non-economic general partner
interest in DCP and approximately 118 million DCP common units,
representing approximately 57% of DCP’s outstanding common
units.
The terms of the transaction were unanimously approved by the
board of directors of the general partner of DCP following the
unanimous approval and recommendation of its conflicts committee,
comprised entirely of independent directors. J.P. Morgan Securities
LLC acted as financial advisor and Bracewell LLP acted as legal
advisor to DCP's general partner. The conflicts committee engaged
Evercore as its financial advisor and Hunton Andrews Kurth LLP and
Richards, Layton & Finger as its legal advisors.
GROWTH UPDATE
Logistics Growth
- The Gulf Coast Express pipeline was placed in service in
September of 2019, adding ~2.0 Bcf/d of gas takeaway from the
Delaware Basin. DCP owns a 25% equity interest in the
pipeline.
- FERC approval for the Cheyenne Connector was received in
September and DCP exercised an increased 50% ownership option in
October. The pipeline is expected to be in service in the first
half of 2020, alleviating constraints in the DJ Basin.
- DCP is adding new NGL takeaway to the DJ Basin with the
Southern Hills pipeline extension, via the White Cliffs conversion.
The initial capacity is expected to be 90 MBbls/d, expandable to
120 MBbls/d, with an anticipated fourth quarter 2019 in-service
date.
- The Southern Hills capacity expansion from ~190 to 230 MBbls/d
is expected to be in service by the fourth quarter of 2020.
- Expansions of Front Range and Texas Express will add
incremental NGL takeaway from the DJ Basin. Front Range pipeline is
expected to ramp to 255 MBbls/d of capacity in 2021 and Texas
Express pipeline is expected to ramp to 330 MBbls/d of capacity in
2022.
G&P Growth
- The 200 MMcf/d O’Connor 2 plant was placed into service in the
third quarter of 2019. The plant and the associated bypass of
up to 100 MMcf/d increases total available DJ Basin capacity to 1.4
Bcf/d. The bypass is expected to be online in the fourth
quarter.
- DCP is adding up to 225 MMcf/d of incremental DJ Basin
processing capacity by mid-2020 via a capital efficient offload
agreement.
Fractionation Growth
- DCP holds an option to acquire a 30% ownership interest in two
150 MBbls/d fractionators currently under construction within
Phillips 66's Sweeny Hub, exercisable at the in-service date, which
is expected to be in late 2020.
COMMON UNIT DISTRIBUTIONS
On October 22, 2019, 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 $190 million and
$587 million for the three and nine months ended September 30,
2019, respectively. Distributions declared were $155 million
and $464 million for the three and nine months ended September
30, 2019, respectively, resulting in distribution coverage ratios
of 1.23 times and 1.27 times for the three and nine months ended
September 30, 2019, respectively.
THIRD QUARTER 2019 OPERATING RESULTS BY BUSINESS
SEGMENT
Logistics and Marketing
Logistics and Marketing Segment net income attributable to
partners for the three months ended September 30, 2019 and 2018 was
$124 million and $148 million, respectively.
Adjusted segment EBITDA increased to $200 million for the three
months ended September 30, 2019, from $166 million for the three
months ended September 30, 2018, reflecting higher equity earnings
and distributions driven by solid volumes on Sand Hills, new
GCX volumes, and gas marketing margins associated with Guadalupe,
and higher realized cash settlement gains related to DCP's
commodity derivative program.
Gathering and Processing
Gathering and Processing Segment net (loss) income attributable
to partners for the three months ended September 30, 2019 and 2018
was $(147) million and $96 million, respectively.
Adjusted segment EBITDA decreased to $167 million for the three
months ended September 30, 2019, from $210 million for the three
months ended September 30, 2018, reflecting sustained lower
commodity prices and volume declines in the Midcontinent
region. These decreases were partially offset by DJ Basin
growth and higher realized cash settlement gains 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.
- 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, 2019, total available capacity
under the Credit Agreement was $1,175 million net of $15 million of
letters of credit and no outstanding borrowings.
- 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 2022. As of
September 30, 2019, DCP had $200 million of outstanding
borrowings under the accounts receivable securitization facility
included in current debt.
As of September 30, 2019, DCP had $5,785 million of total
consolidated principal debt outstanding, including
$600 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 quarter ending September 30,
2019, DCP's leverage ratio was 4.0 times. The effective interest
rate on DCP's overall debt position, as of September 30, 2019,
was 5.35%.
CAPITAL EXPENDITURES AND INVESTMENTS
During the three and nine months ended September 30, 2019,
DCP had expansion capital expenditures and equity investments
totaling $145 million and $684 million, and maintenance
capital expenditures totaling $19 million and $58 million,
respectively.
EARNINGS CALL
DCP will host a conference call webcast tomorrow,
November 7, 2019, at 10:00 a.m. ET, to discuss its third
quarter 2019 earnings and its IDR elimination transaction. 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
8355008. An audio webcast replay, presentation slides and
transcript will also be available by accessing the Investors
section on the DCP website.
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.
Management believes these measures provide investors meaningful
insight into results from 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 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 STATEMENTSThis 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:
Sarah Sandberg
scsandberg@dcpmidstream.com
303-605-1626
DCP MIDSTREAM,
LPFINANCIAL RESULTS ANDSUMMARY
FINANCIAL DATA(Unaudited)
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September
30, |
|
September
30, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
(Millions, except per unit amounts) |
Sales of
natural gas, NGLs and condensate |
|
$ |
1,599 |
|
|
$ |
2,682 |
|
|
$ |
5,369 |
|
|
$ |
7,008 |
|
Transportation, processing and other |
|
101 |
|
|
133 |
|
|
326 |
|
|
371 |
|
Trading and marketing losses, net |
|
(1 |
) |
|
(56 |
) |
|
1 |
|
|
(164 |
) |
Total operating revenues |
|
1,699 |
|
|
2,759 |
|
|
5,696 |
|
|
7,215 |
|
Purchases and related costs |
|
(1,308 |
) |
|
(2,327 |
) |
|
(4,468 |
) |
|
(6,024 |
) |
Operating and maintenance expense |
|
(187 |
) |
|
(196 |
) |
|
(547 |
) |
|
(543 |
) |
Depreciation and amortization expense |
|
(100 |
) |
|
(98 |
) |
|
(304 |
) |
|
(289 |
) |
General and administrative expense |
|
(66 |
) |
|
(70 |
) |
|
(201 |
) |
|
(199 |
) |
Asset impairments |
|
(247 |
) |
|
— |
|
|
(247 |
) |
|
— |
|
Loss on sale of assets |
|
— |
|
|
— |
|
|
(14 |
) |
|
— |
|
Restructuring costs |
|
(2 |
) |
|
— |
|
|
(11 |
) |
|
— |
|
Other income (expense), net |
|
— |
|
|
(2 |
) |
|
(6 |
) |
|
(7 |
) |
Total operating costs and expenses |
|
(1,910 |
) |
|
(2,693 |
) |
|
(5,798 |
) |
|
(7,062 |
) |
Operating income |
|
(211 |
) |
|
66 |
|
|
(102 |
) |
|
153 |
|
Loss from financing activities |
|
— |
|
|
(19 |
) |
|
— |
|
|
(19 |
) |
Interest expense, net |
|
(79 |
) |
|
(69 |
) |
|
(221 |
) |
|
(203 |
) |
Earnings from unconsolidated affiliates |
|
114 |
|
|
104 |
|
|
344 |
|
|
278 |
|
Income tax expense |
|
(1 |
) |
|
— |
|
|
(2 |
) |
|
(2 |
) |
Net income attributable to noncontrolling interests |
|
(1 |
) |
|
(1 |
) |
|
(3 |
) |
|
(3 |
) |
Net (loss) income attributable to partners |
|
(178 |
) |
|
81 |
|
|
16 |
|
|
204 |
|
Series A preferred partner's interest in net income |
|
(9 |
) |
|
(10 |
) |
|
(28 |
) |
|
(28 |
) |
Series B preferred partner's interest in net income |
|
(3 |
) |
|
(3 |
) |
|
(9 |
) |
|
(5 |
) |
Series C preferred partner's interest in net income |
|
(3 |
) |
|
— |
|
|
(7 |
) |
|
— |
|
General partner's interest in net income |
|
(35 |
) |
|
(42 |
) |
|
(118 |
) |
|
(123 |
) |
Net (loss) income allocable to limited partners |
|
$ |
(228 |
) |
|
$ |
26 |
|
|
$ |
(146 |
) |
|
$ |
48 |
|
|
|
|
|
|
|
|
|
|
Net (loss) income per limited partner unit — basic and
diluted |
|
$ |
(1.59 |
) |
|
$ |
0.18 |
|
|
$ |
(1.02 |
) |
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
Weighted-average limited
partner units outstanding — basic and diluted |
|
143.3 |
|
|
143.3 |
|
|
143.3 |
|
|
143.3 |
|
|
|
September
30, |
|
December
31, |
|
2019 |
|
2018 |
|
|
(Millions) |
Cash and cash
equivalents |
|
$ |
2 |
|
$ |
1 |
Other current assets |
|
1,057 |
|
1,270 |
Property, plant and equipment, net |
|
8,871 |
|
9,135 |
Other long-term assets |
|
4,104 |
|
3,860 |
Total assets |
|
$ |
14,034 |
|
$ |
14,266 |
|
|
|
|
|
Current liabilities |
|
$ |
1,091 |
|
$ |
1,379 |
Current debt |
|
601 |
|
525 |
Long-term debt |
|
5,165 |
|
4,782 |
Other long-term liabilities |
|
362 |
|
283 |
Partners' equity |
|
6,787 |
|
7,268 |
Noncontrolling interests |
|
28 |
|
29 |
Total liabilities and equity |
|
$ |
14,034 |
|
$ |
14,266 |
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
Three Months
Ended |
|
Nine Months
Ended |
September
30, |
|
September
30, |
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
|
(Millions) |
Reconciliation of Non-GAAP Financial
Measures: |
|
|
|
|
|
|
|
Net (loss)
income attributable to partners |
(178 |
) |
|
81 |
|
|
16 |
|
|
204 |
|
Interest expense, net |
79 |
|
|
69 |
|
|
221 |
|
|
203 |
|
Depreciation, amortization and income tax expense, net of
noncontrolling interests |
101 |
|
|
97 |
|
|
305 |
|
|
290 |
|
Distributions from unconsolidated affiliates, net of earnings |
25 |
|
|
28 |
|
|
54 |
|
|
47 |
|
Asset impairments |
247 |
|
|
— |
|
|
247 |
|
|
— |
|
Loss from financing activities |
— |
|
|
19 |
|
|
— |
|
|
19 |
|
Other non-cash charges |
— |
|
|
2 |
|
|
6 |
|
|
5 |
|
Loss on sale of assets |
— |
|
|
— |
|
|
14 |
|
|
— |
|
Non-cash commodity derivative mark-to-market |
26 |
|
|
13 |
|
|
41 |
|
|
79 |
|
Adjusted EBITDA |
300 |
|
|
309 |
|
|
904 |
|
|
847 |
|
Interest expense, net |
(79 |
) |
|
(69 |
) |
|
(221 |
) |
|
(203 |
) |
Maintenance capital expenditures, net of noncontrolling interest
portion and reimbursable projects |
(17 |
) |
|
(20 |
) |
|
(56 |
) |
|
(69 |
) |
Preferred unit distributions *** |
(15 |
) |
|
(13 |
) |
|
(44 |
) |
|
(33 |
) |
Other, net |
1 |
|
|
2 |
|
|
4 |
|
|
4 |
|
Distributable cash flow |
190 |
|
|
209 |
|
|
587 |
|
|
546 |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
91 |
|
|
210 |
|
|
637 |
|
|
541 |
|
Interest expense, net |
79 |
|
|
69 |
|
|
221 |
|
|
203 |
|
Net changes in operating assets and liabilities |
107 |
|
|
21 |
|
|
10 |
|
|
34 |
|
Non-cash commodity derivative mark-to-market |
26 |
|
|
13 |
|
|
41 |
|
|
79 |
|
Other, net |
(3 |
) |
|
(4 |
) |
|
(5 |
) |
|
(10 |
) |
Adjusted EBITDA |
300 |
|
|
309 |
|
|
904 |
|
|
847 |
|
Interest expense, net |
(79 |
) |
|
(69 |
) |
|
(221 |
) |
|
(203 |
) |
Maintenance capital expenditures, net of noncontrolling interest
portion and reimbursable projects |
(17 |
) |
|
(20 |
) |
|
(56 |
) |
|
(69 |
) |
Preferred unit distributions *** |
(15 |
) |
|
(13 |
) |
|
(44 |
) |
|
(33 |
) |
Other, net |
1 |
|
|
2 |
|
|
4 |
|
|
4 |
|
Distributable cash flow |
190 |
|
|
209 |
|
|
587 |
|
|
546 |
|
*** 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 |
|
Nine Months
Ended |
|
September
30, |
|
September
30, |
|
2019 |
|
|
2018 |
|
|
2019 |
|
2018 |
|
(Millions, except as indicated) |
Logistics and Marketing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net
income attributable to partners |
$ |
124 |
|
|
$ |
148 |
|
|
$ |
456 |
|
$ |
357 |
Non-cash commodity derivative mark-to-market |
21 |
|
|
(8 |
) |
|
15 |
|
30 |
Depreciation and amortization expense |
4 |
|
|
5 |
|
|
10 |
|
11 |
Distributions from unconsolidated affiliates, net of earnings |
16 |
|
|
21 |
|
|
37 |
|
31 |
Asset impairments |
35 |
|
|
— |
|
|
35 |
|
— |
Loss on sale of assets |
— |
|
|
— |
|
|
10 |
|
— |
Other charges |
— |
|
|
— |
|
|
1 |
|
— |
Adjusted segment EBITDA |
$ |
200 |
|
|
$ |
166 |
|
|
$ |
564 |
|
$ |
429 |
|
|
|
|
|
|
|
|
Operating and financial data: |
|
|
|
|
|
|
|
NGL pipelines throughput (MBbls/d) |
598 |
|
|
616 |
|
|
634 |
|
575 |
NGL fractionator throughput (MBbls/d) |
57 |
|
|
60 |
|
|
61 |
|
59 |
Operating and maintenance expense |
$ |
9 |
|
|
$ |
14 |
|
|
$ |
29 |
|
$ |
36 |
|
|
|
|
|
|
|
|
Gathering and Processing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net income attributable to partners |
$ |
(147 |
) |
|
$ |
96 |
|
|
$ |
10 |
|
$ |
285 |
Non-cash commodity derivative mark-to-market |
5 |
|
|
21 |
|
|
26 |
|
49 |
Depreciation and amortization expense, net of noncontrolling
interest |
88 |
|
|
85 |
|
|
271 |
|
257 |
Asset impairments |
212 |
|
|
— |
|
|
212 |
|
— |
Loss on sale of assets |
— |
|
|
— |
|
|
4 |
|
— |
Distributions from unconsolidated affiliates, net of earnings |
9 |
|
|
7 |
|
|
17 |
|
16 |
Other charges |
— |
|
|
1 |
|
|
5 |
|
4 |
Adjusted segment EBITDA |
$ |
167 |
|
|
$ |
210 |
|
|
$ |
545 |
|
$ |
611 |
|
|
|
|
|
|
|
|
Operating and financial data: |
|
|
|
|
|
|
|
Natural gas wellhead (MMcf/d) |
4,957 |
|
|
4,881 |
|
|
4,920 |
|
4,715 |
NGL gross production (MBbls/d) |
406 |
|
|
439 |
|
|
421 |
|
416 |
Operating and maintenance expense |
$ |
172 |
|
|
$ |
175 |
|
|
$ |
502 |
|
$ |
492 |
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
Three Months
Ended |
|
Nine Months
Ended |
September
30, |
|
September
30, |
|
2019 |
|
2019 |
|
(Millions, except as indicated) |
Reconciliation of Non-GAAP Financial
Measures: |
|
|
|
|
|
Distributable cash flow |
$ |
190 |
|
|
$ |
587 |
|
Distributions declared ** |
$ |
155 |
|
|
$ |
464 |
|
Distribution coverage ratio -
declared |
1.23 |
x |
|
1.27 |
x |
|
|
|
|
|
|
Distributable cash flow |
$ |
190 |
|
|
$ |
587 |
|
Distributions paid |
$ |
154 |
|
|
$ |
463 |
|
Distribution coverage ratio -
paid |
1.23 |
x |
|
1.27 |
x |
|
|
Quarter
Ended December 31,
2018 |
|
Quarter
Ended March 31,
2019 |
|
Quarter
Ended June 30,
2019 |
|
Quarter
Ended September 30,
2019 |
|
Twelve
MonthsEnded
September 30,2019 |
|
|
(Millions, except as indicated) |
|
|
|
|
|
|
|
|
|
|
|
Distributable cash flow |
|
$ |
138 |
|
$ |
224 |
|
$ |
173 |
|
$ |
190 |
|
$ |
725 |
Distributions declared ** |
|
$ |
154 |
|
$ |
155 |
|
$ |
154 |
|
$ |
155 |
|
$ |
618 |
Distribution coverage ratio -
declared |
|
0.90x |
|
1.45x |
|
1.12x |
|
1.23x |
|
1.17x |
|
|
|
|
|
|
|
|
|
|
|
Distributable cash flow |
|
$ |
138 |
|
$ |
224 |
|
$ |
173 |
|
$ |
190 |
|
$ |
725 |
Distributions paid |
|
$ |
155 |
|
$ |
154 |
|
$ |
155 |
|
$ |
154 |
|
$ |
618 |
Distribution coverage ratio -
paid |
|
0.89x |
|
1.45x |
|
1.12x |
|
1.23x |
|
1.17x |
** There were no IDR givebacks reflected in distributions
declared for the three and nine months ended September 30, 2019 and
2018, respectively.
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