Today, DCP Midstream, LP (NYSE: DCP) reported its financial results
for the three and nine months ended September 30, 2020.
HIGHLIGHTS
- For the respective three and nine months ended
September 30, 2020, DCP generated net income (loss)
attributable to partners of $111 million and $(392) million; net
cash provided by operating activities of $268 million and $791
million; adjusted EBITDA of $331 million and $963 million; and
distributable cash flow of $232 million and $672 million.
- Generated $130 million and $152 million of excess free cash
flow for the three and nine months ended September 30, 2020, after
fully funding $82 million and $325 million in distributions and $20
million and $193 million in growth capital expenses,
respectively.
- Reduced debt by $175 million year to date, including $156
million in the third quarter, and lowered bank leverage to 3.9
times for the twelve months ended September 30, 2020.
- Third quarter costs down $43 million compared to the same
period in 2019, resulting in an 17%, or $130 million, year to date
reduction driven by continued cost discipline and DCP 2.0
transformation efforts.
- Year to date total capital, including all sustaining and growth
capital, has been reduced 71% compared to 2019.
- Logistics and Marketing segment accounted for 62% of Q3
Adjusted EBITDA, with third quarter Logistics and Marketing
Adjusted EBITDA increasing approximately 8% year over year, driven
by increased earnings on Gulf Coast Express, Sand Hills, Southern
Hills, and Front Range, partially offset by lower Guadalupe and NGL
Marketing earnings.
- Gathering and Processing segment Adjusted EBITDA increased 5%
year over year, driven by increased overall wellhead margin and
cost discipline, partially offset by lower volumes and dampened
commodity prices.
THIRD QUARTER 2020 SUMMARY FINANCIAL
RESULTS
|
Three Months
Ended |
|
Nine Months
Ended |
September
30, |
|
September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(Unaudited) |
|
(Millions,
except per unit amounts) |
|
|
|
|
|
|
|
|
Net income (loss) attributable
to partners |
$ |
111 |
|
|
$ |
(178 |
) |
|
|
$ |
(392 |
) |
|
|
$ |
16 |
|
|
Net income (loss) per limited
partner unit - basic and diluted |
$ |
0.46 |
|
|
$ |
(1.59 |
) |
|
|
$ |
(2.09 |
) |
|
|
$ |
(1.02 |
) |
|
Net cash provided by operating
activities |
$ |
268 |
|
|
$ |
91 |
|
|
|
$ |
791 |
|
|
|
$ |
637 |
|
|
Adjusted EBITDA(1) |
$ |
331 |
|
|
$ |
300 |
|
|
|
$ |
963 |
|
|
|
$ |
904 |
|
|
Distributable cash
flow(1) |
$ |
232 |
|
|
$ |
190 |
|
|
|
$ |
672 |
|
|
|
$ |
587 |
|
|
Excess free cash flow(1) |
$ |
130 |
|
|
$ |
(109 |
) |
|
|
$ |
152 |
|
|
|
$ |
(563 |
) |
|
(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, excess free 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 continues to execute successfully through the cycle,
delivering strong financial results while maintaining top safety
and reliability performance," said Wouter van Kempen, chairman,
president, and CEO. “With a focus on optimization and discipline,
our ability to generate $152 million of excess free cash flow and
reduce debt by $175 million year-to-date demonstrates the
resiliency and durability of the DCP business model, and we remain
committed to strengthening the balance sheet to ensure stability in
times of continued uncertainty."
COMMON UNIT DISTRIBUTIONS
On October 16, 2020, DCP announced a quarterly common unit
distribution of $0.39 per limited partner unit.
DCP generated distributable cash flow of $232 million and
$672 million for the three and nine months ended
September 30, 2020, respectively. Distributions declared were
$81 million and $244 million for the three and nine
months ended September 30, 2020, respectively.
THIRD QUARTER 2020 OPERATING RESULTS BY BUSINESS
SEGMENT
Logistics and Marketing
Logistics and Marketing Segment net income attributable to
partners for the three months ended September 30, 2020 and 2019 was
$206 million and $124 million, respectively.
Adjusted segment EBITDA increased to $216 million for the three
months ended September 30, 2020, from $200 million for the three
months ended September 30, 2019, reflecting higher equity earnings
and distributions driven by a full quarter of Gulf Coast Express
volumes and higher cash distributions on Sand Hills, partially
offset by lower earnings from Guadalupe and lower NGL marketing
earnings.
The following table represents volumes for the Logistics and
Marketing segment:
|
|
|
|
|
|
Three Months Ended September 30, 2019 |
|
Three Months Ended June 30, 2020 |
|
Three Months Ended September 30, 2020 |
NGL Pipeline |
|
% Owned |
|
Net Pipeline Capacity (MBbls/d) |
|
Average NGL Throughput (MBpd) |
|
Average NGL Throughput (MBpd) |
|
Average NGL Throughput (MBpd) |
Sand Hills |
|
67 % |
|
333 |
|
|
321 |
|
|
312 |
|
|
307 |
|
Southern Hills |
|
67 % |
|
128 |
|
|
86 |
|
|
100 |
|
|
104 |
|
Front Range |
|
33 % |
|
87 |
|
|
45 |
|
|
56 |
|
|
57 |
|
Texas Express |
|
10 % |
|
37 |
|
|
17 |
|
|
19 |
|
|
20 |
|
Other |
|
Various |
|
310 |
|
|
129 |
|
|
189 |
|
|
192 |
|
Total |
|
|
|
895 |
|
|
598 |
|
|
676 |
|
|
680 |
|
Gathering and Processing
Gathering and Processing Segment net income (loss) attributable
to partners for the three months ended September 30, 2020 and 2019
was $50 million and $(147) million, respectively.
Adjusted segment EBITDA increased to $176 million for the three
months ended September 30, 2020, from $167 million for the three
months ended September 30, 2019, reflecting lower operating costs
and increased volumes in the North and Permian regions, partially
offset by lower commodity prices and lower volumes in the South and
Midcontinent regions.
The following table represents volumes for the Gathering and
Processing segment:
|
|
Three Months Ended September 30, 2020 |
|
Three Months Ended September 30, 2019 |
|
Three Months Ended June 30, 2020 |
|
Three Months Ended September 30, 2020 |
|
|
|
|
|
|
|
|
|
System |
|
Net Plant/Treater Capacity (MMCF/d) |
|
Average Wellhead Volumes (MMcf/d) |
|
Average Wellhead Volumes (MMcf/d) |
|
Average Wellhead Volumes (MMcf/d) |
North |
|
1,580 |
|
|
1,488 |
|
|
1,531 |
|
|
1,506 |
|
Permian |
|
1,200 |
|
|
957 |
|
|
987 |
|
|
975 |
|
Midcontinent |
|
1,110 |
|
|
1,106 |
|
|
842 |
|
|
834 |
|
South |
|
2,120 |
|
|
1,406 |
|
|
1,127 |
|
|
1,049 |
|
Total |
|
6,010 |
|
|
4,957 |
|
|
4,487 |
|
|
4,364 |
|
CREDIT FACILITIES AND DEBT
DCP has two credit facilities with up to $1.75 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, or the Credit Agreement, that matures on
December 9, 2024. As of September 30, 2020, total
available capacity under the Credit Agreement was $1,265 million
net of $125 million of outstanding borrowings and $10 million of
letters of credit.
- DCP has an accounts receivable securitization facility that
provides up to $350 million of borrowing capacity that matures
August 12, 2022. As of September 30, 2020, DCP had $350
million of outstanding borrowings under the accounts receivable
securitization facility.
As of September 30, 2020, DCP had $5,750 million of total
consolidated principal debt outstanding, with the next maturity not
until September 2021. 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 twelve months ended September 30, 2020, DCP's leverage
ratio was 3.9 times. The effective interest rate on DCP's overall
debt position, as of September 30, 2020, was 5.18%.
CAPITAL EXPENDITURES AND INVESTMENTS
During the three and nine months ended September 30, 2020,
DCP had expansion capital expenditures and equity investments
totaling $20 million and $193 million, and sustaining
capital expenditures totaling $7 million and $23 million,
respectively.
CAPITAL PROJECT UPDATE
Gathering and Processing ProjectsThe Latham 2
offload will add up to 225 MMcf/d of incremental DJ Basin
processing capacity and is expected to be in-service in the fourth
quarter of 2020.
THIRD QUARTER 2020 EARNINGS CALL
DCP will host a conference call webcast tomorrow, November 5,
2020, at 11:00 a.m. ET, to discuss its third quarter earnings. 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
9598426. 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, excess free 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 pay
sustaining 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
sustaining 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.
DCP defines excess free cash flow as distributable cash flow, as
defined above, less distributions to limited partners and the
general partner, less expansion capital expenditures, net of
reimbursable projects, and contributions to equity method
investments, and less certain other items. Expansion capital
expenditures are cash expenditures to increase DCP's cash flows,
operating or earnings capacity. Expansion capital expenditures add
on to or improve the capital assets owned, or acquire or construct
new gathering lines and well connects, treating facilities,
processing plants, fractionation facilities, pipelines, terminals,
docks, truck racks, tankage and other storage, distribution or
transportation facilities and related or similar midstream
assets.
Sustaining 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. Sustaining 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. 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.
Excess free cash flow is used as a supplemental liquidity and
performance measure by our management and by external users of our
financial statements, such as investors, commercial banks, research
analysts and others, and is useful to investors and management as a
measure of our ability to generate cash particularly in light of an
ongoing transition in the midstream industry that has shifted
investor focus from distribution growth to capital discipline, cost
efficiency, and balance-sheet strength. Once business needs and
obligations are met, including cash reserves to provide funds for
distribution payments on our units and the proper conduct of our
business, which includes cash reserves for future capital
expenditures and anticipated credit needs, this cash can be used to
reduce debt, reinvest in the company for future growth, or return
to unitholders.
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:
Sarah Sandberg
scsandberg@dcpmidstream.com
303-605-1626
DCP MIDSTREAM,
LPFINANCIAL RESULTS ANDSUMMARY
FINANCIAL DATA(Unaudited)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(Millions,
except per unit amounts) |
Sales of natural gas, NGLs and condensate |
|
$ |
1,466 |
|
|
|
$ |
1,599 |
|
|
|
$ |
4,031 |
|
|
|
$ |
5,369 |
|
|
Transportation, processing and other |
|
109 |
|
|
|
101 |
|
|
|
330 |
|
|
|
326 |
|
|
Trading and marketing gains (losses), net |
|
11 |
|
|
|
(1 |
) |
|
|
156 |
|
|
|
1 |
|
|
Total operating revenues |
|
1,586 |
|
|
|
1,699 |
|
|
|
4,517 |
|
|
|
5,696 |
|
|
Purchases and related costs |
|
(1,218 |
) |
|
|
(1,308 |
) |
|
|
(3,338 |
) |
|
|
(4,468 |
) |
|
Operating and maintenance expense |
|
(146 |
) |
|
|
(187 |
) |
|
|
(447 |
) |
|
|
(547 |
) |
|
Depreciation and amortization expense |
|
(92 |
) |
|
|
(100 |
) |
|
|
(284 |
) |
|
|
(304 |
) |
|
General and administrative expense |
|
(66 |
) |
|
|
(66 |
) |
|
|
(173 |
) |
|
|
(201 |
) |
|
Asset impairments |
|
— |
|
|
|
(247 |
) |
|
|
(746 |
) |
|
|
(247 |
) |
|
Loss on sale of assets, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14 |
) |
|
Restructuring costs |
|
— |
|
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(11 |
) |
|
Other expense, net |
|
(4 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
(6 |
) |
|
Total operating costs and expenses |
|
(1,526 |
) |
|
|
(1,910 |
) |
|
|
(5,009 |
) |
|
|
(5,798 |
) |
|
Operating (loss) income |
|
60 |
|
|
|
(211 |
) |
|
|
(492 |
) |
|
|
(102 |
) |
|
Interest expense, net |
|
(77 |
) |
|
|
(79 |
) |
|
|
(226 |
) |
|
|
(221 |
) |
|
Earnings from unconsolidated affiliates |
|
130 |
|
|
|
114 |
|
|
|
331 |
|
|
|
344 |
|
|
Income tax expense |
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
Net income attributable to noncontrolling interests |
|
(1 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
Net income (loss) attributable to partners |
|
111 |
|
|
|
(178 |
) |
|
|
(392 |
) |
|
|
16 |
|
|
Series A preferred partner's interest in net income |
|
(9 |
) |
|
|
(9 |
) |
|
|
(28 |
) |
|
|
(28 |
) |
|
Series B preferred partner's interest in net income |
|
(3 |
) |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(9 |
) |
|
Series C preferred partner's interest in net income |
|
(3 |
) |
|
|
(3 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
General partner's interest in net income |
|
— |
|
|
|
(35 |
) |
|
|
— |
|
|
|
(118 |
) |
|
Net income (loss) allocable to limited partners |
|
$ |
96 |
|
|
|
$ |
(228 |
) |
|
|
$ |
(436 |
) |
|
|
$ |
(146 |
) |
|
Net income (loss) per limited partner unit — basic and
diluted |
|
$ |
0.46 |
|
|
|
$ |
(1.59 |
) |
|
|
$ |
(2.09 |
) |
|
|
$ |
(1.02 |
) |
|
Weighted-average limited
partner units outstanding — basic |
|
208.3 |
|
|
|
143.3 |
|
|
|
208.3 |
|
|
|
143.3 |
|
|
Weighted-average limited
partner units outstanding — diluted |
|
208.7 |
|
|
|
143.3 |
|
|
|
208.3 |
|
|
|
143.3 |
|
|
|
|
September 30, |
|
December 31, |
|
2020 |
|
2019 |
|
|
(Millions) |
Cash and cash
equivalents |
|
$ |
14 |
|
|
$ |
1 |
|
Other current assets |
|
852 |
|
|
1,079 |
|
Property, plant and equipment, net |
|
8,046 |
|
|
8,811 |
|
Other long-term assets |
|
4,002 |
|
|
4,236 |
|
Total assets |
|
$ |
12,914 |
|
|
$ |
14,127 |
|
|
|
|
|
|
Current liabilities |
|
$ |
909 |
|
|
$ |
1,190 |
|
Current debt |
|
504 |
|
|
603 |
|
Long-term debt |
|
5,244 |
|
|
5,321 |
|
Other long-term liabilities |
|
375 |
|
|
380 |
|
Partners' equity |
|
5,854 |
|
|
6,605 |
|
Noncontrolling interests |
|
28 |
|
|
28 |
|
Total liabilities and equity |
|
$ |
12,914 |
|
|
$ |
14,127 |
|
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(Millions) |
Reconciliation of Non-GAAP Financial
Measures: |
|
|
|
|
|
|
|
Net income (loss) attributable to partners |
$ |
111 |
|
|
|
$ |
(178 |
) |
|
|
$ |
(392 |
) |
|
|
$ |
16 |
|
|
Interest expense, net |
77 |
|
|
|
79 |
|
|
|
226 |
|
|
|
221 |
|
|
Depreciation, amortization and income tax expense, net of
noncontrolling interests |
94 |
|
|
|
101 |
|
|
|
286 |
|
|
|
305 |
|
|
Distributions from unconsolidated affiliates, net of earnings |
39 |
|
|
|
25 |
|
|
|
158 |
|
|
|
54 |
|
|
Asset impairments |
— |
|
|
|
247 |
|
|
|
746 |
|
|
|
247 |
|
|
Other non-cash charges |
(1 |
) |
|
|
— |
|
|
|
5 |
|
|
|
6 |
|
|
Loss on sale of assets |
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
Non-cash commodity derivative mark-to-market |
11 |
|
|
|
26 |
|
|
|
(66 |
) |
|
|
41 |
|
|
Adjusted EBITDA |
331 |
|
|
|
300 |
|
|
|
963 |
|
|
|
904 |
|
|
Interest expense, net |
(77 |
) |
|
|
(79 |
) |
|
|
(226 |
) |
|
|
(221 |
) |
|
Sustaining capital expenditures, net of noncontrolling interest
portion and reimbursable projects (a) |
(7 |
) |
|
|
(17 |
) |
|
|
(23 |
) |
|
|
(56 |
) |
|
Distributions to preferred limited partners (b) |
(15 |
) |
|
|
(15 |
) |
|
|
(44 |
) |
|
|
(44 |
) |
|
Other, net |
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
4 |
|
|
Distributable cash flow |
232 |
|
|
|
190 |
|
|
|
672 |
|
|
|
587 |
|
|
Distributions to limited partners and general partner |
(82 |
) |
|
|
(154 |
) |
|
|
(325 |
) |
|
|
(463 |
) |
|
Expansion capital expenditures and equity investments, net of
reimbursable projects |
(20 |
) |
|
|
(145 |
) |
|
|
(193 |
) |
|
|
(684 |
) |
|
Other, net |
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(3 |
) |
|
Excess free cash flow |
$ |
130 |
|
|
|
$ |
(109 |
) |
|
|
$ |
152 |
|
|
|
$ |
(563 |
) |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
268 |
|
|
|
$ |
91 |
|
|
|
$ |
791 |
|
|
|
$ |
637 |
|
|
Interest expense, net |
77 |
|
|
|
79 |
|
|
|
226 |
|
|
|
221 |
|
|
Net changes in operating assets and liabilities |
(22 |
) |
|
|
107 |
|
|
|
35 |
|
|
|
10 |
|
|
Non-cash commodity derivative mark-to-market |
11 |
|
|
|
26 |
|
|
|
(66 |
) |
|
|
41 |
|
|
Other, net |
(3 |
) |
|
|
(3 |
) |
|
|
(23 |
) |
|
|
(5 |
) |
|
Adjusted EBITDA |
331 |
|
|
|
300 |
|
|
|
963 |
|
|
|
904 |
|
|
Interest expense, net |
(77 |
) |
|
|
(79 |
) |
|
|
(226 |
) |
|
|
(221 |
) |
|
Sustaining capital expenditures, net of noncontrolling interest
portion and reimbursable projects (a) |
(7 |
) |
|
|
(17 |
) |
|
|
(23 |
) |
|
|
(56 |
) |
|
Distributions to preferred limited partners (b) |
(15 |
) |
|
|
(15 |
) |
|
|
(44 |
) |
|
|
(44 |
) |
|
Other, net |
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
4 |
|
|
Distributable cash flow |
232 |
|
|
|
190 |
|
|
|
672 |
|
|
|
587 |
|
|
Distributions to limited partners and general partner |
(82 |
) |
|
|
(154 |
) |
|
|
(325 |
) |
|
|
(463 |
) |
|
Expansion capital expenditures and equity investments, net of
reimbursable projects |
(20 |
) |
|
|
(145 |
) |
|
|
(193 |
) |
|
|
(684 |
) |
|
Other, net |
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(3 |
) |
|
Excess free cash flow |
$ |
130 |
|
|
|
$ |
(109 |
) |
|
|
$ |
152 |
|
|
|
$ |
(563 |
) |
|
(a) Excludes reimbursements for leasehold improvements(b)
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 September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
(Millions, except as indicated) |
Logistics and Marketing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net income attributable to partners |
$ |
206 |
|
|
|
$ |
124 |
|
|
|
$ |
619 |
|
|
|
$ |
456 |
|
Non-cash commodity derivative mark-to-market |
(28 |
) |
|
|
21 |
|
|
|
(75 |
) |
|
|
15 |
|
Depreciation and amortization expense |
3 |
|
|
|
4 |
|
|
|
9 |
|
|
|
10 |
|
Distributions from unconsolidated affiliates, net of earnings |
35 |
|
|
|
16 |
|
|
|
82 |
|
|
|
37 |
|
Asset impairments |
— |
|
|
|
35 |
|
|
|
— |
|
|
|
35 |
|
Loss on sale of assets |
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
Other charges |
— |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
Adjusted segment EBITDA |
$ |
216 |
|
|
|
$ |
200 |
|
|
|
$ |
637 |
|
|
|
$ |
564 |
|
|
|
|
|
|
|
|
|
Operating and financial data: |
|
|
|
|
|
|
|
NGL pipelines throughput (MBbls/d) |
680 |
|
|
|
598 |
|
|
|
678 |
|
|
|
634 |
|
NGL fractionator throughput (MBbls/d) |
58 |
|
|
|
57 |
|
|
|
55 |
|
|
|
61 |
|
Operating and maintenance expense |
$ |
8 |
|
|
|
$ |
9 |
|
|
|
$ |
24 |
|
|
|
$ |
29 |
|
|
|
|
|
|
|
|
|
Gathering and Processing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net income (loss) attributable to partners |
$ |
50 |
|
|
|
$ |
(147 |
) |
|
|
$ |
(584 |
) |
|
|
$ |
10 |
|
Non-cash commodity derivative mark-to-market |
39 |
|
|
|
5 |
|
|
|
9 |
|
|
|
26 |
|
Depreciation and amortization expense, net of noncontrolling
interest |
82 |
|
|
|
88 |
|
|
|
252 |
|
|
|
271 |
|
Asset impairments |
— |
|
|
|
212 |
|
|
|
746 |
|
|
|
212 |
|
Loss on sale of assets |
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
Distributions from unconsolidated affiliates, net of losses |
4 |
|
|
|
9 |
|
|
|
76 |
|
|
|
17 |
|
Other charges |
1 |
|
|
|
— |
|
|
|
3 |
|
|
|
5 |
|
Adjusted segment EBITDA |
$ |
176 |
|
|
|
$ |
167 |
|
|
|
$ |
502 |
|
|
|
$ |
545 |
|
|
|
|
|
|
|
|
|
Operating and financial data: |
|
|
|
|
|
|
|
Natural gas wellhead (MMcf/d) |
4,364 |
|
|
|
4,957 |
|
|
|
4,597 |
|
|
|
4,920 |
|
NGL gross production (MBbls/d) |
406 |
|
|
|
406 |
|
|
|
394 |
|
|
|
421 |
|
Operating and maintenance expense |
$ |
135 |
|
|
|
$ |
172 |
|
|
|
$ |
411 |
|
|
|
$ |
502 |
|
DCP Midstream (NYSE:DCP)
Historical Stock Chart
From Aug 2024 to Sep 2024
DCP Midstream (NYSE:DCP)
Historical Stock Chart
From Sep 2023 to Sep 2024