Today, DCP Midstream, LP (NYSE: DCP) reported its financial results
for the three and six months ended June 30, 2020.
HIGHLIGHTS
- For the respective three and six months ended June 30,
2020, DCP generated net income (loss) attributable to partners of
$47 million and $(503) million; net cash provided by operating
activities of $209 million and $523 million; adjusted EBITDA of
$311 million and $632 million; and distributable cash
flow (DCF) of $220 million and $440 million.
- Achieved one of the strongest first half DCF and Adjusted
EBITDA performances in company history, with an 11% increase in DCF
and a 5% increase in Adjusted EBITDA compared to the first half of
2019.
- Lowered bank leverage and achieved target of 4.0 times for the
twelve months ended June 30, 2020.
- Generated $54 million of free cash flow (FCF) in the second
quarter of 2020, after fully funding distributions and growth
capital expenses, as a result of our integrated asset base, early
mitigation efforts to reduce costs and capital, and DCP 2.0
transformation outcomes.
- Second quarter 2020 Logistics and Marketing Adjusted EBITDA
increased approximately 18% from second quarter 2019, driven by
increased margin from Gulf Coast Express, NGL marketing, and Sand
Hills, partially offset by lower Guadalupe earnings. Logistics and
Marketing accounted for ~65% of Q2 Adjusted EBITDA.
- Increased wellhead volumes in the DJ and Permian basins by 15%
and 5%, respectively, from the second quarter of 2019. Gathering
& Processing volumes exceeded expectations, partially due to
our proactive, short-term renegotiation of contracts to keep
volumes on the DCP system.
- Delivered best quarterly and first half cost performance since
company was combined with DCP Midstream, LLC, resulting in an over
$50 million year-over-year reduction in the second quarter, driven
by savings in contract services, consumables, labor, and
utilities.
- Reissuing original 2020 Adjusted EBITDA and DCF guidance, as
given in February 2020, driven by strong 1H results and confidence
in our ability to continue to generate significant FCF throughout
the remainder of 2020.
- Replacing distribution coverage ratio metric with free cash
flow, highlighting a more comprehensive measure of cash flow and
indicative of our ability to delever.
- Issued $500 million senior notes at 5.625% due 2027, securing
$1.1 billion of available liquidity.
- DJ Basin regulatory stability substantially increased by a
broad coalition, led by Governor Polis, committed to proactively
preventing anti-oil and gas ballot initiatives and significant
legislation through 2022 election cycle.
- Placed the fully-subscribed 600 MMcf/d Cheyenne Connector into
service, providing residue gas takeaway from the DJ Basin to the
Rockies Express Pipeline.
- Moved in-service date of Latham 2 offload to Q4, without
adverse impacts to minimum volume commitments or customer
service.
SECOND QUARTER 2020 SUMMARY FINANCIAL
RESULTS
|
Three Months
Ended |
|
Six Months
Ended |
June
30, |
|
June
30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(Unaudited) |
|
(Millions, except per unit amounts) |
|
|
|
|
|
|
|
|
Net income (loss) attributable to partners |
$ |
47 |
|
|
$ |
119 |
|
|
$ |
(503 |
) |
|
$ |
194 |
|
Net income (loss) per limited
partner unit - basic |
$ |
0.15 |
|
|
$ |
0.43 |
|
|
$ |
(2.55 |
) |
|
$ |
0.57 |
|
Net income (loss) per limited
partner unit - diluted |
$ |
0.15 |
|
|
$ |
0.43 |
|
|
$ |
(2.55 |
) |
|
$ |
0.57 |
|
Net cash provided by operating
activities |
$ |
209 |
|
|
$ |
229 |
|
|
$ |
523 |
|
|
$ |
546 |
|
Adjusted EBITDA(1) |
$ |
311 |
|
|
$ |
278 |
|
|
$ |
632 |
|
|
$ |
604 |
|
Distributable cash
flow(1) |
$ |
220 |
|
|
$ |
173 |
|
|
$ |
440 |
|
|
$ |
397 |
|
Free cash flow(1) |
$ |
54 |
|
|
$ |
(230 |
) |
|
$ |
22 |
|
|
$ |
(454 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 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
“I want to thank our dedicated team for delivering some of our
best ever safety, reliability, and financial results in what has
been an exceptionally challenging environment," said Wouter van
Kempen, chairman, president, and CEO. “Our supply long, capacity
short strategy, as well as our early and aggressive actions to
optimize our cost structure and proactively manage volumes has
positioned the company well for significant free cash flow
generation in 2020 and beyond. These strong second quarter and
first half results demonstrate the earnings power of our asset
base, our integrated value chain, our industry leading DCP 2.0
transformation, and our remarkable team."
CAPITAL PROJECT UPDATE
Logistics and Marketing Projects
- The Cheyenne Connector was placed into service in the second
quarter of 2020, adding 600 MMcf/d of residue gas takeaway and
eliminating logistics constraints in the DJ Basin.
- Front Range’s expansion to a capacity of 260 MBbls/d and Texas
Express’ expansion to a capacity of 370 MBbls/d were placed into
service in the second quarter of 2020.
Gathering and Processing Projects
- DCP has moved the Latham 2 offload project to the fourth
quarter of 2020. The delay will not hinder DCP's ability to meet
minimum volume commitments effective January 1, 2021. The Latham 2
offload will add up to 225 MMcf/d of incremental DJ Basin
processing capacity.
COMMON UNIT DISTRIBUTIONS
On July 21, 2020, 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 $220 million and
$440 million for the three and six months ended June 30,
2020, respectively. Distributions declared were $82 million
and $163 million for the three and six months ended
June 30, 2020, respectively.
SECOND QUARTER 2020 OPERATING RESULTS BY BUSINESS
SEGMENT
Logistics and Marketing
Logistics and Marketing Segment net income attributable to
partners for the three months ended June 30, 2020 and 2019 was $177
million and $185 million, respectively.
Adjusted segment EBITDA increased to $213 million for the three
months ended June 30, 2020, from $181 million for the three months
ended June 30, 2019, reflecting higher equity earnings and
distributions driven by Gulf Coast Express volumes, favorable NGL
marketing margins, and higher cash distributions on Sand Hills,
partially offset by lower earnings from Guadalupe.
Gathering and Processing
Gathering and Processing Segment net income attributable to
partners for the three months ended June 30, 2020 and 2019 was $11
million and $90 million, respectively.
Adjusted segment EBITDA decreased to $158 million for the three
months ended June 30, 2020, from $173 million for the three months
ended June 30, 2019, reflecting sustained lower commodity prices,
lower volumes in the South and Midcontinent regions due to recent
producer shut-ins, partially offset by increased volumes in the
North and Permian regions, and lower operating costs.
CAPITALIZATION, LIQUIDITY, AND FINANCING
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, 2020, total available
capacity under the Credit Agreement was $1,105 million net of $281
million of outstanding borrowings and $14 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 June 30, 2020, DCP had
$350 million of outstanding borrowings under the accounts
receivable securitization facility.
On June 24, 2020, we issued $500 million of 5.625% Senior Notes
due July 2027. We received proceeds of $494 million, net of
underwriters' fees and related expenses, which we used for general
partnership purposes, including the repayment of indebtedness under
our Credit Agreement and the funding of capital expenditures.
As of June 30, 2020, DCP had $5,906 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 June 30, 2020, DCP's leverage
ratio was 4.0 times. The effective interest rate on DCP's overall
debt position, as of June 30, 2020, was 5.10%.
CAPITAL EXPENDITURES AND INVESTMENTS
During the three and six months ended June 30, 2020, DCP
had expansion capital expenditures and equity investments totaling
$84 million and $173 million, and sustaining capital
expenditures totaling $6 million and $16 million,
respectively.
EARNINGS CALL
DCP will host a conference call webcast tomorrow, August 6,
2020, 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
8398286. 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, 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 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 free cash flow as distributable cash flow, as
defined above, less distributions to limited partners and the
general partner, less distributions to noncontrolling interests,
and less expansion capital expenditures and contributions to equity
method investments. 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.
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 |
|
Six Months
Ended |
|
June
30, |
|
June
30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(Millions, except per unit amounts) |
Sales of
natural gas, NGLs and condensate |
$ |
1,172 |
|
|
$ |
1,659 |
|
|
$ |
2,565 |
|
|
$ |
3,770 |
|
Transportation, processing and other |
109 |
|
|
110 |
|
|
221 |
|
|
225 |
|
Trading and marketing (losses) gains, net |
(7 |
) |
|
29 |
|
|
145 |
|
|
2 |
|
Total operating revenues |
1,274 |
|
|
1,798 |
|
|
2,931 |
|
|
3,997 |
|
Purchases and related costs |
(974 |
) |
|
(1,356 |
) |
|
(2,120 |
) |
|
(3,160 |
) |
Operating and maintenance expense |
(148 |
) |
|
(182 |
) |
|
(301 |
) |
|
(360 |
) |
Depreciation and amortization expense |
(93 |
) |
|
(101 |
) |
|
(192 |
) |
|
(204 |
) |
General and administrative expense |
(51 |
) |
|
(68 |
) |
|
(107 |
) |
|
(135 |
) |
Asset impairments |
— |
|
|
— |
|
|
(746 |
) |
|
— |
|
Loss on sale of assets, net |
— |
|
|
(5 |
) |
|
— |
|
|
(14 |
) |
Restructuring costs |
(9 |
) |
|
(9 |
) |
|
(9 |
) |
|
(9 |
) |
Other expense, net |
(5 |
) |
|
(1 |
) |
|
(8 |
) |
|
(6 |
) |
Total operating costs and expenses |
(1,280 |
) |
|
(1,722 |
) |
|
(3,483 |
) |
|
(3,888 |
) |
Operating (loss) income |
(6 |
) |
|
76 |
|
|
(552 |
) |
|
109 |
|
Interest expense, net |
(71 |
) |
|
(73 |
) |
|
(149 |
) |
|
(142 |
) |
Earnings from unconsolidated affiliates |
125 |
|
|
117 |
|
|
201 |
|
|
230 |
|
Income tax expense |
— |
|
|
— |
|
|
(1 |
) |
|
(1 |
) |
Net income attributable to noncontrolling interests |
(1 |
) |
|
(1 |
) |
|
(2 |
) |
|
(2 |
) |
Net income (loss) attributable to partners |
47 |
|
|
119 |
|
|
(503 |
) |
|
194 |
|
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 |
) |
General partner's interest in net income |
— |
|
|
(42 |
) |
|
— |
|
|
(83 |
) |
Net income (loss) allocable to limited partners |
$ |
32 |
|
|
$ |
62 |
|
|
$ |
(532 |
) |
|
$ |
82 |
|
|
|
|
|
|
|
|
|
Net income (loss) per limited partner unit — basic |
$ |
0.15 |
|
|
$ |
0.43 |
|
|
$ |
(2.55 |
) |
|
$ |
0.57 |
|
Net income (loss) per limited partner unit — diluted |
$ |
0.15 |
|
|
$ |
0.43 |
|
|
$ |
(2.55 |
) |
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30, |
|
December
31, |
2020 |
|
2019 |
|
(Millions) |
Cash and cash
equivalents |
$ |
12 |
|
|
$ |
1 |
|
Other current assets |
790 |
|
|
1,079 |
|
Property, plant and equipment, net |
8,116 |
|
|
8,811 |
|
Other long-term assets |
4,028 |
|
|
4,236 |
|
Total assets |
$ |
12,946 |
|
|
$ |
14,127 |
|
|
|
|
|
Current liabilities |
$ |
809 |
|
|
$ |
1,190 |
|
Current debt |
3 |
|
|
603 |
|
Long-term debt |
5,897 |
|
|
5,321 |
|
Other long-term liabilities |
378 |
|
|
380 |
|
Partners' equity |
5,831 |
|
|
6,605 |
|
Noncontrolling interests |
28 |
|
|
28 |
|
Total liabilities and equity |
$ |
12,946 |
|
|
$ |
14,127 |
|
|
|
|
|
|
|
|
|
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
Three Months
Ended |
|
Six Months
Ended |
June
30, |
|
June
30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(Millions) |
Reconciliation of Non-GAAP Financial
Measures: |
|
|
|
|
|
|
|
Net income
(loss) attributable to partners |
$ |
47 |
|
|
$ |
119 |
|
|
$ |
(503 |
) |
|
$ |
194 |
|
Interest expense, net |
71 |
|
|
73 |
|
|
149 |
|
|
142 |
|
Depreciation, amortization and income tax expense, net of
noncontrolling interests |
92 |
|
|
101 |
|
|
192 |
|
|
204 |
|
Distributions from unconsolidated affiliates, net of earnings |
42 |
|
|
18 |
|
|
119 |
|
|
29 |
|
Asset impairments |
— |
|
|
— |
|
|
746 |
|
|
— |
|
Other non-cash charges |
2 |
|
|
1 |
|
|
6 |
|
|
6 |
|
Loss on sale of assets |
— |
|
|
5 |
|
|
— |
|
|
14 |
|
Non-cash commodity derivative mark-to-market |
57 |
|
|
(39 |
) |
|
(77 |
) |
|
15 |
|
Adjusted EBITDA |
311 |
|
|
278 |
|
|
632 |
|
|
604 |
|
Interest expense, net |
(71 |
) |
|
(73 |
) |
|
(149 |
) |
|
(142 |
) |
Sustaining capital expenditures, net of noncontrolling interest
portion and reimbursable projects |
(6 |
) |
|
(19 |
) |
|
(16 |
) |
|
(39 |
) |
Distributions to preferred limited partners *** |
(15 |
) |
|
(15 |
) |
|
(29 |
) |
|
(29 |
) |
Other, net |
1 |
|
|
2 |
|
|
2 |
|
|
3 |
|
Distributable cash flow |
$ |
220 |
|
|
$ |
173 |
|
|
$ |
440 |
|
|
$ |
397 |
|
Distributions to limited partners and general partner |
(81 |
) |
|
(155 |
) |
|
(243 |
) |
|
(309 |
) |
Distributions to noncontrolling interests |
(1 |
) |
|
(2 |
) |
|
(2 |
) |
|
(3 |
) |
Expansion capital expenditures and equity investments |
(84 |
) |
|
(246 |
) |
|
(173 |
) |
|
(539 |
) |
Free cash flow |
54 |
|
|
(230 |
) |
|
22 |
|
|
(454 |
) |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
209 |
|
|
$ |
229 |
|
|
$ |
523 |
|
|
$ |
546 |
|
Interest expense, net |
71 |
|
|
73 |
|
|
149 |
|
|
142 |
|
Net changes in operating assets and liabilities |
(19 |
) |
|
15 |
|
|
57 |
|
|
(97 |
) |
Non-cash commodity derivative mark-to-market |
57 |
|
|
(39 |
) |
|
(77 |
) |
|
15 |
|
Other, net |
(7 |
) |
|
— |
|
|
(20 |
) |
|
(2 |
) |
Adjusted EBITDA |
311 |
|
|
278 |
|
|
632 |
|
|
604 |
|
Interest expense, net |
(71 |
) |
|
(73 |
) |
|
(149 |
) |
|
(142 |
) |
Sustaining capital expenditures, net of noncontrolling interest
portion and reimbursable projects |
(6 |
) |
|
(19 |
) |
|
(16 |
) |
|
(39 |
) |
Distributions to preferred limited partners *** |
(15 |
) |
|
(15 |
) |
|
(29 |
) |
|
(29 |
) |
Other, net |
1 |
|
|
2 |
|
|
2 |
|
|
3 |
|
Distributable cash flow |
220 |
|
|
173 |
|
|
440 |
|
|
397 |
|
Distributions to limited partners and general partner |
(81 |
) |
|
(155 |
) |
|
(243 |
) |
|
(309 |
) |
Distributions to noncontrolling interests |
(1 |
) |
|
(2 |
) |
|
(2 |
) |
|
(3 |
) |
Expansion capital expenditures and equity investments |
(84 |
) |
|
(246 |
) |
|
(173 |
) |
|
(539 |
) |
Free cash flow |
$ |
54 |
|
|
$ |
(230 |
) |
|
$ |
22 |
|
|
$ |
(454 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*** 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 |
|
Six Months
Ended |
|
June
30, |
|
June
30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(Millions, except as indicated) |
Logistics and Marketing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net
income attributable to partners |
$ |
177 |
|
|
$ |
185 |
|
|
$ |
413 |
|
|
$ |
332 |
|
Non-cash commodity derivative mark-to-market |
(5 |
) |
|
(24 |
) |
|
(47 |
) |
|
(6 |
) |
Depreciation and amortization expense |
3 |
|
|
3 |
|
|
6 |
|
|
6 |
|
Distributions from unconsolidated affiliates, net of earnings |
37 |
|
|
15 |
|
|
47 |
|
|
21 |
|
Loss on sale of assets |
— |
|
|
1 |
|
|
— |
|
|
10 |
|
Other charges |
1 |
|
|
1 |
|
|
2 |
|
|
1 |
|
Adjusted segment EBITDA |
$ |
213 |
|
|
$ |
181 |
|
|
$ |
421 |
|
|
$ |
364 |
|
|
|
|
|
|
|
|
|
Operating and financial data: |
|
|
|
|
|
|
|
NGL pipelines throughput (MBbls/d) |
676 |
|
|
637 |
|
|
677 |
|
|
652 |
|
NGL fractionator throughput (MBbls/d) |
51 |
|
|
61 |
|
|
54 |
|
|
62 |
|
Operating and maintenance expense |
$ |
9 |
|
|
$ |
11 |
|
|
$ |
16 |
|
|
$ |
20 |
|
|
|
|
|
|
|
|
|
Gathering and Processing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net income (loss) attributable to partners |
$ |
11 |
|
|
$ |
90 |
|
|
$ |
(634 |
) |
|
$ |
157 |
|
Non-cash commodity derivative mark-to-market |
62 |
|
|
(15 |
) |
|
(30 |
) |
|
21 |
|
Depreciation and amortization expense, net of noncontrolling
interest |
81 |
|
|
91 |
|
|
170 |
|
|
183 |
|
Asset impairments |
— |
|
|
— |
|
|
746 |
|
|
— |
|
Loss on sale of assets |
— |
|
|
4 |
|
|
— |
|
|
4 |
|
Distributions from unconsolidated affiliates, net of losses |
5 |
|
|
3 |
|
|
72 |
|
|
8 |
|
Other charges |
(1 |
) |
|
— |
|
|
2 |
|
|
5 |
|
Adjusted segment EBITDA |
$ |
158 |
|
|
$ |
173 |
|
|
$ |
326 |
|
|
$ |
378 |
|
|
|
|
|
|
|
|
|
Operating and financial data: |
|
|
|
|
|
|
|
Natural gas wellhead (MMcf/d) |
4,487 |
|
|
4,866 |
|
|
4,713 |
|
|
4,902 |
|
NGL gross production (MBbls/d) |
376 |
|
|
422 |
|
|
390 |
|
|
429 |
|
Operating and maintenance expense |
$ |
134 |
|
|
$ |
165 |
|
|
$ |
276 |
|
|
$ |
330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
Twelve Months Ended |
|
December 31, 2020 |
|
Low |
|
High |
|
Forecast |
|
Forecast |
|
(millions) |
Reconciliation of
Non-GAAP Measures: |
|
|
|
Forecasted net income attributable to partners |
$ |
380 |
|
|
$ |
480 |
|
Distributions from unconsolidated affiliates, net of earnings |
65 |
|
|
85 |
|
Interest expense, net of interest income |
320 |
|
|
340 |
|
Income taxes |
5 |
|
|
5 |
|
Depreciation and amortization, net of noncontrolling interests |
420 |
|
|
440 |
|
Non-cash commodity derivative mark-to-market |
15 |
|
|
(5 |
) |
Forecasted adjusted
EBITDA |
1,205 |
|
|
1,345 |
|
Interest expense, net of interest income |
(320 |
) |
|
(340 |
) |
Sustaining capital expenditures, net of reimbursable projects |
(75 |
) |
|
(95 |
) |
Preferred unit distributions *** |
(60 |
) |
|
(60 |
) |
Other, net |
(20 |
) |
|
(20 |
) |
Forecasted distributable cash
flow |
730 |
|
|
830 |
|
Distributions to limited partners and general partner |
(406 |
) |
|
(406 |
) |
Distributions to noncontrolling interests |
(5 |
) |
|
(5 |
) |
Expansion capital expenditures and equity investments |
(190 |
) |
|
(150 |
) |
Forecasted Free Cash Flow |
$ |
129 |
|
|
$ |
269 |
|
|
|
|
|
|
|
|
|
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