Today, DCP Midstream, LP (NYSE: DCP) reported its financial results
for the three and six months ended June 30, 2021.
HIGHLIGHTS
- For the respective three and six months ended June 30,
2021, DCP had net (loss) income attributable to partners of $(31)
million and $22 million, net cash provided by operating activities
of $72 million and $68 million, adjusted EBITDA of $333 million and
$608 million, and distributable cash flow of $225 million and $400
million.
- Second quarter adjusted EBITDA and DCF increased by 21% and 29%
from first quarter 2021.
- Generated $132 million of excess free cash flow for the three
months ended June 30, 2021 and $221 million for the six months
ended June 30, 2021 after fully funding distributions and growth
capital.
- Excess FCF generated in second quarter 2021 represents a 48%
increase from first quarter 2021 and a 144% increase from second
quarter 2020.
- Gathering & Processing average wellhead volumes increased
from first quarter 2021 by 6% due to improved volumes across all
four regions.
- Logistics & Marketing throughput volumes increased by 16%
from first quarter 2021 due to improved Sand Hills and Southern
Hills volumes.
- Guiding towards high end of adjusted EBITDA, DCF, and excess
FCF guidance ranges due to strong first half results, favorable
commodity price outlook, and improving volumes.
- Issued Second Annual Sustainability Report and set
forward-looking targets, including:
- Long-term emissions reduction targets of reducing Scope 1 and 2
greenhouse gas emissions by 30% by 2030 and ultimately achieving
net zero emissions by 2050;
- Inclusion and diversity targets to ensure workforce and
leadership fully represent the gender and racial demographics of
the communities in which we operate by 2028.
SECOND QUARTER 2021 SUMMARY FINANCIAL
RESULTS
|
Three Months Ended |
|
Six Months Ended |
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
(Unaudited) |
|
(Millions, except per unit amounts) |
|
|
|
|
|
|
|
|
Net (loss) income attributable to partners |
$ |
(31 |
) |
|
|
$ |
47 |
|
|
$ |
22 |
|
|
|
$ |
(503 |
) |
|
Net (loss) income per limited
partner unit - basic and diluted |
$ |
(0.22 |
) |
|
|
$ |
0.15 |
|
|
$ |
(0.03 |
) |
|
|
$ |
(2.55 |
) |
|
Net cash provided by operating
activities |
$ |
72 |
|
|
|
$ |
209 |
|
|
$ |
68 |
|
|
|
$ |
523 |
|
|
Adjusted EBITDA(1) |
$ |
333 |
|
|
|
$ |
311 |
|
|
$ |
608 |
|
|
|
$ |
632 |
|
|
Distributable cash
flow(1) |
$ |
225 |
|
|
|
$ |
220 |
|
|
$ |
400 |
|
|
|
$ |
440 |
|
|
Excess free cash flow(1) |
$ |
132 |
|
|
|
$ |
54 |
|
|
$ |
221 |
|
|
|
$ |
22 |
|
|
- 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 reported another strong quarter of earnings,
positioning us to deliver financial results at the high end of our
2021 guidance and building momentum as we head into 2022," said
Wouter van Kempen, chairman, president, and CEO. "Additionally,
we're proud to highlight the team's accomplishment in reducing
Scope 1 and Scope 2 greenhouse gas emissions by 16% since 2018. In
a continuation of this effort, we have committed to further reduce
our emissions in the coming years, with goals of reaching a 30%
reduction by 2030 and achieving net zero emissions by 2050. I have
full confidence that our team will accomplish these aggressive
goals while creating incremental value for all DCP
stakeholders."
COMMON UNIT DISTRIBUTIONS
On July 20, 2021, DCP announced a quarterly common unit
distribution of $0.39 per limited partner unit. This distribution
remains unchanged from the previous quarter.
DCP generated distributable cash flow of $225 million and $400
million for three and six months ended June 30, 2021,
respectively. Distributions declared were $82 million and $163
million for the three and six months ended June 30, 2021,
respectively.
SECOND QUARTER 2021 OPERATING RESULTS BY BUSINESS
SEGMENT
Logistics and Marketing
Logistics and Marketing segment net income attributable to
partners for the three months ended June 30, 2021 and 2020 was $109
million and $177 million, respectively.
Adjusted segment EBITDA decreased to $194 million for the three
months ended June 30, 2021, from $213 million for the three months
ended June 30, 2020, reflecting lower earnings from NGL and gas
marketing, partially offset by an increase in Southern Hills
volumes.
The following table represents volumes for the Logistics and
Marketing segment:
|
|
|
|
|
|
Three Months Ended June 30, 2021 |
|
Three Months Ended March 31, 2021 |
|
Three Months EndedJune 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 |
|
|
288 |
|
|
228 |
|
|
312 |
|
Southern Hills |
|
67 |
% |
|
128 |
|
|
116 |
|
|
105 |
|
|
100 |
|
Front Range |
|
33 |
% |
|
87 |
|
|
60 |
|
|
56 |
|
|
56 |
|
Texas Express |
|
10 |
% |
|
37 |
|
|
21 |
|
|
19 |
|
|
19 |
|
Other |
|
Various |
|
310 |
|
|
186 |
|
|
170 |
|
|
189 |
|
Total |
|
|
|
895 |
|
|
671 |
|
|
578 |
|
|
676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering and Processing
Gathering and Processing segment net income attributable to
partners for the three months ended June 30, 2021 and 2020 was $3
million and $11 million, respectively.
Adjusted segment EBITDA increased to $197 million for the three
months ended June 30, 2021, from $158 million for the three months
ended June 30, 2020, reflecting higher commodity prices, higher
wellhead volumes in the North, partially offset by lower volumes in
the South and Permian, and increased operating costs.
The following table represents volumes for the Gathering and
Processing segment:
|
|
Three Months Ended June 30, 2021 |
|
Three Months Ended June 30, 2021 |
|
Three Months Ended March 31, 2021 |
|
Three Months Ended June 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 |
|
|
1,540 |
|
|
1,520 |
|
|
1,531 |
|
Midcontinent |
|
1,110 |
|
|
850 |
|
|
799 |
|
|
842 |
|
Permian |
|
1,200 |
|
|
926 |
|
|
858 |
|
|
987 |
|
South |
|
1,730 |
|
|
1,022 |
|
|
900 |
|
|
1,127 |
|
Total |
|
5,620 |
|
|
4,338 |
|
|
4,077 |
|
|
4,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2021, total unused
borrowing capacity under the Credit Agreement was $780 million net
of $618 million of outstanding borrowings and $2 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, 2024. As of
June 30, 2021, DCP had $350 million of outstanding borrowings
under the accounts receivable securitization facility.
As of June 30, 2021, DCP had $5.7 billion of total
consolidated principal debt outstanding. 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 June 30, 2021,
DCP's leverage ratio was 4.2 times. The effective interest rate on
DCP's overall debt position, as of June 30, 2021, was
4.90%.
CAPITAL EXPENDITURES AND INVESTMENTS
During the three months ended June 30, 2021, DCP had
expansion capital expenditures and equity investments totaling
$11 million, and sustaining capital expenditures totaling
$17 million.
SECOND QUARTER 2021 EARNINGS CALL
DCP will host a conference call webcast tomorrow, August 5,
2021, at 10:00 a.m. ET, to discuss its second 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
6537779. 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 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, 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:
Mike Fullman
mfullman@dcpmidstream.com
303-605-1628
DCP MIDSTREAM,
LPFINANCIAL RESULTS ANDSUMMARY
FINANCIAL DATA(Unaudited)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(Millions, except per unit amounts) |
Sales of natural gas, NGLs and condensate |
|
$ |
2,113 |
|
|
|
$ |
1,172 |
|
|
|
$ |
4,682 |
|
|
|
$ |
2,565 |
|
|
Transportation, processing and
other |
|
125 |
|
|
|
109 |
|
|
|
243 |
|
|
|
221 |
|
|
Trading and marketing (losses)
gains, net |
|
(153 |
) |
|
|
(7 |
) |
|
|
(522 |
) |
|
|
145 |
|
|
Total operating revenues |
|
2,085 |
|
|
|
1,274 |
|
|
|
4,403 |
|
|
|
2,931 |
|
|
Purchases and related
costs |
|
(1,839 |
) |
|
|
(974 |
) |
|
|
(3,876 |
) |
|
|
(2,120 |
) |
|
Operating and maintenance
expense |
|
(165 |
) |
|
|
(148 |
) |
|
|
(314 |
) |
|
|
(301 |
) |
|
Depreciation and amortization
expense |
|
(93 |
) |
|
|
(93 |
) |
|
|
(184 |
) |
|
|
(192 |
) |
|
General and administrative
expense |
|
(57 |
) |
|
|
(51 |
) |
|
|
(95 |
) |
|
|
(107 |
) |
|
Asset impairments |
|
(20 |
) |
|
|
— |
|
|
|
(20 |
) |
|
|
(746 |
) |
|
Loss on sale of assets,
net |
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
Restructuring costs |
|
— |
|
|
|
(9 |
) |
|
|
— |
|
|
|
(9 |
) |
|
Other income (expense) |
|
6 |
|
|
|
(5 |
) |
|
|
6 |
|
|
|
(8 |
) |
|
Total operating costs and expenses |
|
(2,169 |
) |
|
|
(1,280 |
) |
|
|
(4,484 |
) |
|
|
(3,483 |
) |
|
Operating loss |
|
(84 |
) |
|
|
(6 |
) |
|
|
(81 |
) |
|
|
(552 |
) |
|
Interest expense, net |
|
(77 |
) |
|
|
(71 |
) |
|
|
(154 |
) |
|
|
(149 |
) |
|
Earnings from unconsolidated
affiliates |
|
131 |
|
|
|
125 |
|
|
|
259 |
|
|
|
201 |
|
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
Net income attributable to
noncontrolling interests |
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
Net (loss) income attributable to partners |
|
(31 |
) |
|
|
47 |
|
|
|
22 |
|
|
|
(503 |
) |
|
Series A preferred partner's
interest in net income |
|
(10 |
) |
|
|
(10 |
) |
|
|
(19 |
) |
|
|
(19 |
) |
|
Series B preferred partner's
interest in net income |
|
(3 |
) |
|
|
(3 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
|
Series C preferred partner's
interest in net income |
|
(2 |
) |
|
|
(2 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
|
Net (loss) income allocable to
limited partners |
|
$ |
(46 |
) |
|
|
$ |
32 |
|
|
|
$ |
(7 |
) |
|
|
$ |
(532 |
) |
|
Net (loss) income per limited
partner unit — basic and diluted |
|
$ |
(0.22 |
) |
|
|
$ |
0.15 |
|
|
|
$ |
(0.03 |
) |
|
|
$ |
(2.55 |
) |
|
Weighted-average limited
partner units outstanding — basic |
|
208.4 |
|
|
|
208.3 |
|
|
|
208.4 |
|
|
|
208.3 |
|
|
Weighted-average limited
partner units outstanding — diluted |
|
208.4 |
|
|
|
208.7 |
|
|
|
208.4 |
|
|
|
208.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
2021 |
|
2020 |
|
|
(Millions) |
Cash and cash equivalents |
|
$ |
5 |
|
|
|
$ |
52 |
|
|
Other current assets |
|
1,517 |
|
|
|
956 |
|
|
Property, plant and equipment,
net |
|
7,837 |
|
|
|
7,993 |
|
|
Other long-term assets |
|
3,941 |
|
|
|
3,956 |
|
|
Total assets |
|
$ |
13,300 |
|
|
|
$ |
12,957 |
|
|
|
|
|
|
|
Current liabilities |
|
$ |
1,454 |
|
|
|
$ |
1,116 |
|
|
Current debt |
|
354 |
|
|
|
505 |
|
|
Long-term debt |
|
5,388 |
|
|
|
5,119 |
|
|
Other long-term
liabilities |
|
407 |
|
|
|
356 |
|
|
Partners' equity |
|
5,670 |
|
|
|
5,834 |
|
|
Noncontrolling interests |
|
27 |
|
|
|
27 |
|
|
Total liabilities and
equity |
|
$ |
13,300 |
|
|
|
$ |
12,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
(Millions) |
Reconciliation of
Non-GAAP Financial Measures: |
|
|
|
|
|
|
|
Net (loss) income attributable to partners |
$ |
(31 |
) |
|
|
$ |
47 |
|
|
|
$ |
22 |
|
|
|
$ |
(503 |
) |
|
Interest expense, net |
77 |
|
|
|
71 |
|
|
|
154 |
|
|
|
149 |
|
|
Depreciation, amortization and income tax expense, net of
noncontrolling interests |
91 |
|
|
|
92 |
|
|
|
182 |
|
|
|
192 |
|
|
Distributions from unconsolidated affiliates, net of earnings |
39 |
|
|
|
42 |
|
|
|
40 |
|
|
|
119 |
|
|
Asset impairments |
20 |
|
|
|
— |
|
|
|
20 |
|
|
|
746 |
|
|
Other non-cash charges |
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
6 |
|
|
Non-cash commodity derivative mark-to-market |
136 |
|
|
|
57 |
|
|
|
189 |
|
|
|
(77 |
) |
|
Adjusted EBITDA |
333 |
|
|
|
311 |
|
|
|
608 |
|
|
|
632 |
|
|
Interest expense, net |
(77 |
) |
|
|
(71 |
) |
|
|
(154 |
) |
|
|
(149 |
) |
|
Sustaining capital expenditures, net of noncontrolling interest
portion and reimbursable projects (a) |
(17 |
) |
|
|
(6 |
) |
|
|
(27 |
) |
|
|
(16 |
) |
|
Distributions to preferred limited partners (b) |
(15 |
) |
|
|
(15 |
) |
|
|
(29 |
) |
|
|
(29 |
) |
|
Other, net |
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
Distributable cash flow |
225 |
|
|
|
220 |
|
|
|
400 |
|
|
|
440 |
|
|
Distributions to limited partners |
(82 |
) |
|
|
(81 |
) |
|
|
(163 |
) |
|
|
(243 |
) |
|
Expansion capital expenditures and equity investments, net of
reimbursable projects |
(11 |
) |
|
|
(84 |
) |
|
|
(15 |
) |
|
|
(173 |
) |
|
Other, net |
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
Excess free cash flow |
$ |
132 |
|
|
|
$ |
54 |
|
|
|
$ |
221 |
|
|
|
$ |
22 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities |
$ |
72 |
|
|
|
$ |
209 |
|
|
|
$ |
68 |
|
|
|
$ |
523 |
|
|
Interest expense, net |
77 |
|
|
|
71 |
|
|
|
154 |
|
|
|
149 |
|
|
Net changes in operating assets and liabilities |
53 |
|
|
|
(19 |
) |
|
|
205 |
|
|
|
57 |
|
|
Non-cash commodity derivative mark-to-market |
136 |
|
|
|
57 |
|
|
|
189 |
|
|
|
(77 |
) |
|
Other, net |
(5 |
) |
|
|
(7 |
) |
|
|
(8 |
) |
|
|
(20 |
) |
|
Adjusted EBITDA |
333 |
|
|
|
311 |
|
|
|
608 |
|
|
|
632 |
|
|
Interest expense, net |
(77 |
) |
|
|
(71 |
) |
|
|
(154 |
) |
|
|
(149 |
) |
|
Sustaining capital expenditures, net of noncontrolling interest
portion and reimbursable projects (a) |
(17 |
) |
|
|
(6 |
) |
|
|
(27 |
) |
|
|
(16 |
) |
|
Distributions to preferred limited partners (b) |
(15 |
) |
|
|
(15 |
) |
|
|
(29 |
) |
|
|
(29 |
) |
|
Other, net |
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
Distributable cash flow |
225 |
|
|
|
220 |
|
|
|
400 |
|
|
|
440 |
|
|
Distributions to limited partners |
(82 |
) |
|
|
(81 |
) |
|
|
(163 |
) |
|
|
(243 |
) |
|
Expansion capital expenditures and equity investments, net of
reimbursable projects |
(11 |
) |
|
|
(84 |
) |
|
|
(15 |
) |
|
|
(173 |
) |
|
Other, net |
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
Excess free cash flow |
$ |
132 |
|
|
|
$ |
54 |
|
|
|
$ |
221 |
|
|
|
$ |
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Excludes reimbursements for leasehold improvements
- 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 June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
(Millions, except as indicated) |
Logistics and
Marketing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net income attributable to partners |
$ |
109 |
|
|
|
$ |
177 |
|
|
|
$ |
255 |
|
|
|
$ |
413 |
|
|
Non-cash commodity derivative mark-to-market |
35 |
|
|
|
(5 |
) |
|
|
40 |
|
|
|
(47 |
) |
|
Depreciation and amortization expense |
3 |
|
|
|
3 |
|
|
|
6 |
|
|
|
6 |
|
|
Distributions from unconsolidated affiliates, net of earnings |
34 |
|
|
|
37 |
|
|
|
35 |
|
|
|
47 |
|
|
Asset impairments |
13 |
|
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
Other charges |
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
Adjusted segment EBITDA |
$ |
194 |
|
|
|
$ |
213 |
|
|
|
$ |
349 |
|
|
|
$ |
421 |
|
|
|
|
|
|
|
|
|
|
Operating and financial
data: |
|
|
|
|
|
|
|
NGL pipelines throughput (MBbls/d) |
671 |
|
|
|
676 |
|
|
|
625 |
|
|
|
677 |
|
|
NGL fractionator throughput (MBbls/d) |
51 |
|
|
|
51 |
|
|
|
47 |
|
|
|
54 |
|
|
Operating and maintenance expense |
$ |
12 |
|
|
|
$ |
9 |
|
|
|
$ |
18 |
|
|
|
$ |
16 |
|
|
|
|
|
|
|
|
|
|
Gathering and
Processing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net income (loss)
attributable to partners |
$ |
3 |
|
|
|
$ |
11 |
|
|
|
$ |
30 |
|
|
|
$ |
(634 |
) |
|
Non-cash commodity derivative mark-to-market |
101 |
|
|
|
62 |
|
|
|
149 |
|
|
|
(30 |
) |
|
Depreciation and amortization expense, net of noncontrolling
interest |
80 |
|
|
|
81 |
|
|
|
161 |
|
|
|
170 |
|
|
Asset impairments |
7 |
|
|
|
— |
|
|
|
7 |
|
|
|
746 |
|
|
Distributions from unconsolidated affiliates, net of losses |
5 |
|
|
|
5 |
|
|
|
5 |
|
|
|
72 |
|
|
Other charges |
1 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
2 |
|
|
Adjusted segment EBITDA |
$ |
197 |
|
|
|
$ |
158 |
|
|
|
$ |
353 |
|
|
|
$ |
326 |
|
|
|
|
|
|
|
|
|
|
Operating and financial
data: |
|
|
|
|
|
|
|
Natural gas wellhead (MMcf/d) |
4,338 |
|
|
|
4,487 |
|
|
|
4,206 |
|
|
|
4,713 |
|
|
NGL gross production (MBbls/d) |
409 |
|
|
|
376 |
|
|
|
385 |
|
|
|
390 |
|
|
Operating and maintenance expense |
$ |
146 |
|
|
|
$ |
134 |
|
|
|
$ |
286 |
|
|
|
$ |
276 |
|
|
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
|
|
Twelve Months Ended |
|
|
|
December 31, 2021 |
|
|
|
Low |
|
High |
|
|
|
Forecast |
|
Forecast |
|
|
|
(millions) |
Reconciliation of Non-GAAP Measures: |
|
|
|
Forecasted net income attributable to partners |
$ |
335 |
|
|
|
$ |
475 |
|
|
|
|
Distributions from
unconsolidated affiliates, net of earnings |
120 |
|
|
|
120 |
|
|
|
|
Interest expense, net of
interest income |
300 |
|
|
|
300 |
|
|
|
|
Income taxes |
5 |
|
|
|
5 |
|
|
|
|
Depreciation and amortization,
net of noncontrolling interests |
365 |
|
|
|
365 |
|
|
|
|
Non-cash commodity derivative
mark-to-market and other |
(5 |
) |
|
|
(5 |
) |
|
Forecasted
adjusted EBITDA |
1,120 |
|
|
|
1,260 |
|
|
|
|
Interest expense, net of
interest income |
(300 |
) |
|
|
(300 |
) |
|
|
|
Sustaining capital
expenditures, net of reimbursable projects |
(45 |
) |
|
|
(85 |
) |
|
|
|
Preferred unit distributions
*** |
(60 |
) |
|
|
(60 |
) |
|
|
|
Other, net |
(5 |
) |
|
|
(5 |
) |
|
Forecasted
distributable cash flow |
710 |
|
|
|
810 |
|
|
|
|
Distributions to limited
partners and general partner |
(325 |
) |
|
|
(325 |
) |
|
|
|
Expansion capital expenditures
and equity investments |
(75 |
) |
|
|
(25 |
) |
|
Forecasted excess
free cash flow |
$ |
310 |
|
|
|
$ |
460 |
|
|
|
|
|
|
|
|
|
|
|
|
*** 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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