Today, DCP Midstream, LP (NYSE: DCP) reported its financial results
for the quarter and year ended December 31, 2020.
HIGHLIGHTS
- For the quarter and year ended December 31, 2020, DCP
generated net income (loss) attributable to partners of $86 million
and $(306) million, net cash provided by operating activities of
$308 million and $1,099 million, adjusted EBITDA of $289 million
and $1,252 million, and distributable cash flow of $178 million and
$850 million.
- Generated $85 million and $237 million of excess free cash flow
for the quarter and year ended December 31, 2020, after fully
funding $81 million and $406 million in distributions and $12
million and $205 million in growth capital, respectively.
- Utilized $237 million of excess free cash flow and positive
working capital to reduce debt by $300 million in 2020, including
$125 million in the fourth quarter, achieving a bank leverage of
3.9 times for the year ended December 31, 2020.
- Fourth quarter costs were down $15 million compared to the same
period in 2019, resulting in a 14%, or $145 million, annualized
reduction compared to 2019, driven by DCP 2.0 transformation
efforts and workforce and operational efficiencies.
- Total capital in 2020, including all sustaining and growth
capital, was reduced by 74% compared to 2019.
- Conserved over $1.1 billion of cash flow via capital,
distribution, and cost reductions compared to 2019, to secure
liquidity, generate excess free cash flow, and reduce debt.
- Logistics and Marketing segment accounted for approximately 61%
of 2020 adjusted EBITDA, with adjusted segment EBITDA growing 10%
year over year, driven by a full year of Gulf Coast Express, the
expansions on Front Range and Texas Express, and NGL Marketing,
partially offset by lower Guadalupe earnings.
- Brought the 225 MMcf/d Latham 2 Offload online in the DJ Basin
at the end of the fourth quarter.
FOURTH QUARTER AND YEAR END 2020 SUMMARY FINANCIAL
RESULTS
|
Three Months Ended |
|
Year Ended |
December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Millions, except per unit amounts) |
|
|
|
|
|
|
|
|
Net income (loss) attributable to partners |
$ |
86 |
|
|
$ |
1 |
|
|
$ |
(306 |
) |
|
$ |
17 |
|
Net income (loss) per limited
partner unit - basic and diluted |
$ |
0.34 |
|
|
$ |
(0.08 |
) |
|
$ |
(1.75 |
) |
|
$ |
(1.05 |
) |
Net cash provided by operating
activities |
$ |
308 |
|
|
$ |
222 |
|
|
$ |
1,099 |
|
|
$ |
859 |
|
Adjusted EBITDA(1) |
$ |
289 |
|
|
$ |
296 |
|
|
$ |
1,252 |
|
|
$ |
1,200 |
|
Distributable cash
flow(1) |
$ |
178 |
|
|
$ |
175 |
|
|
$ |
850 |
|
|
$ |
762 |
|
Excess free cash flow(1) |
$ |
85 |
|
|
$ |
(183 |
) |
|
$ |
237 |
|
|
$ |
(746 |
) |
|
(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, including
forecasts of certain of the foregoing non-GAAP financial measures.
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 demonstrated tremendous execution in the face of
2020's challenges through early and impactful action to generate
$237 million of excess free cash flow and sustainably lower our
costs by $145 million, all while maintaining health and safety,
improving reliability, and lowering emissions," said Wouter van
Kempen, chairman, president, and CEO. “We are taking a conservative
approach to our 2021 volumes and commodity pricing outlook as a
result of continued uncertainty driven by COVID-19 and demand
recovery timing. We are committed to continuing the momentum
established in 2020 by growing excess free cash flow by over 60% in
2021, maintaining our cost reductions, retiring debt, and remaining
focused on our operational excellence."
2021 OUTLOOK
($ in Millions) |
Ranges |
Net income attributable to partners |
$335 |
|
- |
|
$475 |
Adjusted EBITDA(1) |
$1,120 |
|
- |
|
$1,260 |
Distributable cash
flow(1) |
$710 |
|
- |
|
$810 |
Excess free cash flow (1) |
$310 |
|
- |
|
$460 |
Sustaining capital
expenditures |
$45 |
|
- |
|
$85 |
Growth capital
expenditures |
$25 |
|
- |
|
$75 |
|
(1) |
This press release includes the following financial measures not
presented in accordance with U.S. generally accepted accounting
principles, or GAAP: adjusted EBITDA, distributable cash flow,
excess free cash flow, and adjusted segment EBITDA. Each such
non-GAAP financial measure is defined below under “Non-GAAP
Financial Information”, and each is reconciled to its most directly
comparable GAAP financial measure under “Reconciliation of Non-GAAP
Financial Measures” in schedules at the end of this press
release. |
|
|
|
DCP estimates the following 2021 annualized commodity
sensitivities, including the effects of hedging:
Commodity |
Price Target |
Per unitchange |
After hedge impact($ in Millions) |
NGLs ($/gal) |
$0.52 |
$0.01 |
$5 |
Natural Gas ($/MMBtu) |
$2.60 |
$0.10 |
$1 |
Crude Oil ($/Bbl) |
$49.00 |
$1.00 |
$2 |
DCP's 2021 guidance expectations include the following
assumptions:
- Sustaining 2020 cost reductions via DCP 2.0 transformation
efforts
- No capital markets needs
- Absolute debt reduction while maintaining bank leverage ratio
around 4.0 times
- Conservative commodity price deck
- Industry overbuild driving margin compression in both
segments
- Slightly increased NGL pipeline volumes due to increased ethane
recovery
- Full year earnings from the Cheyenne Connector
- Decreasing Guadalupe earnings as a result of tighter price
spreads
- Overall Gathering and Processing volumes slightly declining
compared to 2020
- Maintain stable distribution at $1.56 per common unit
(annualized)
COMMON UNIT DISTRIBUTIONS
On January 21, 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 $178 million and
$850 million for the quarter and year ended December 31,
2020, respectively. Distributions declared were $81 million
and $325 million for the quarter and year ended
December 31, 2020, respectively.
FOURTH QUARTER 2020 OPERATING RESULTS BY BUSINESS
SEGMENT
Logistics and Marketing
Logistics and Marketing segment net income attributable to
partners for the three months ended December 31, 2020 and 2019 was
$158 million and $149 million, respectively.
Adjusted segment EBITDA increased to $183 million for the three
months ended December 31, 2020, from $178 million for the three
months ended December 31, 2019, reflecting higher earnings from
Southern Hills and new earnings from the Cheyenne Connector, put
into service in 2020, partially offset by lower earnings from Sand
Hills and Guadalupe.
The following table represents volumes for the Logistics and
Marketing segment:
|
|
|
|
|
|
Three Months EndedDecember 31, 2020 |
|
Three Months EndedSeptember 30, 2020 |
|
Three Months EndedDecember 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
NGL Pipeline |
|
% Owned |
|
Net PipelineCapacity (MBbls/d) |
|
Average NGLThroughput (MBpd) |
|
Average NGLThroughput (MBpd) |
|
Average NGLThroughput (MBpd) |
Sand Hills |
|
67 |
% |
|
333 |
|
|
257 |
|
|
307 |
|
|
316 |
|
Southern Hills |
|
67 |
% |
|
128 |
|
|
108 |
|
|
104 |
|
|
74 |
|
Front Range |
|
33 |
% |
|
87 |
|
|
57 |
|
|
57 |
|
|
56 |
|
Texas Express |
|
10 |
% |
|
37 |
|
|
21 |
|
|
20 |
|
|
20 |
|
Other |
|
Various |
|
310 |
|
|
167 |
|
|
192 |
|
|
133 |
|
Total |
|
|
|
895 |
|
|
610 |
|
|
680 |
|
|
599 |
|
Gathering and Processing
Gathering and Processing segment net income attributable to
partners for the three months ended December 31, 2020 and 2019 was
$85 million and $12 million, respectively.
Adjusted segment EBITDA decreased to $181 million for the three
months ended December 31, 2020, from $190 million for the three
months ended December 31, 2019, reflecting lower volumes in the
South and Midcontinent regions compared to fourth quarter 2019,
partially offset by lower operating costs.
The following table represents volumes for the Gathering and
Processing segment:
|
|
Three Months EndedDecember 31, 2020 |
|
Three Months EndedDecember 31, 2020 |
|
Three Months EndedSeptember 30, 2020 |
|
Three Months EndedDecember 31, 2019 |
|
|
|
|
|
|
|
|
|
System |
|
Net Plant/TreaterCapacity (MMcf/d) |
|
Average WellheadVolumes (MMcf/d) |
|
Average WellheadVolumes (MMcf/d) |
|
Average WellheadVolumes (MMcf/d) |
North |
|
1,580 |
|
|
1,510 |
|
|
1,506 |
|
|
1,527 |
|
Midcontinent |
|
1,110 |
|
|
804 |
|
|
834 |
|
|
991 |
|
Permian |
|
1,200 |
|
|
1,014 |
|
|
975 |
|
|
1,053 |
|
South |
|
2,120 |
|
|
1,114 |
|
|
1,049 |
|
|
1,427 |
|
Total |
|
6,010 |
|
|
4,442 |
|
|
4,364 |
|
|
4,998 |
|
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 December 31, 2020, total
available capacity under the Credit Agreement was $1,390 million
net of $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
December 31, 2020, DCP had $350 million of outstanding
borrowings under the accounts receivable securitization
facility.
As of December 31, 2020, DCP had $5,625 million of total
consolidated principal debt outstanding, with the next maturity in
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 December 31, 2020, DCP's leverage
ratio was 3.9 times. The effective interest rate on DCP's overall
debt position, as of December 31, 2020, was 5.26%.
CAPITAL EXPENDITURES AND INVESTMENTS
During the quarter and year ended December 31, 2020, DCP
had expansion capital expenditures and equity investments totaling
$12 million and $205 million, and sustaining capital
expenditures totaling $22 million and $45 million,
respectively.
CAPITAL PROJECT UPDATE
Gathering and Processing ProjectsThe Latham 2
offload entered into service in the fourth quarter of 2020 and adds
up to 225 MMcf/d of incremental DJ Basin processing capacity.
FOURTH QUARTER 2020 EARNINGS CALL
DCP will host a conference call webcast tomorrow, February 11,
2021, at 10:00 a.m. ET, to discuss its fourth quarter and full year
2020 earnings and its 2021 guidance. 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 2893317. 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, including forecasts of certain of the foregoing non-GAAP
financial measures. 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 EndedDecember 31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
(Millions, except per unit amounts) |
Sales of natural gas, NGLs and condensate |
$ |
1,660 |
|
|
$ |
1,830 |
|
|
$ |
5,691 |
|
|
$ |
7,199 |
|
Transportation, processing and
other |
125 |
|
|
113 |
|
|
455 |
|
|
439 |
|
Trading and marketing (losses)
gains, net |
— |
|
|
(14 |
) |
|
156 |
|
|
(13 |
) |
Total operating revenues |
1,785 |
|
|
1,929 |
|
|
6,302 |
|
|
7,625 |
|
Purchases and related
costs |
(1,405 |
) |
|
(1,554 |
) |
|
(4,743 |
) |
|
(6,022 |
) |
Operating and maintenance
expense |
(160 |
) |
|
(181 |
) |
|
(607 |
) |
|
(728 |
) |
Depreciation and amortization
expense |
(92 |
) |
|
(100 |
) |
|
(376 |
) |
|
(404 |
) |
General and administrative
expense |
(80 |
) |
|
(74 |
) |
|
(253 |
) |
|
(275 |
) |
Asset impairments |
— |
|
|
— |
|
|
(746 |
) |
|
(247 |
) |
Loss on sale of assets,
net |
— |
|
|
(66 |
) |
|
— |
|
|
(80 |
) |
Restructuring costs |
— |
|
|
— |
|
|
(9 |
) |
|
(11 |
) |
Other expense, net |
(3 |
) |
|
(2 |
) |
|
(15 |
) |
|
(8 |
) |
Total operating costs and expenses |
(1,740 |
) |
|
(1,977 |
) |
|
(6,749 |
) |
|
(7,775 |
) |
Operating income (loss) |
45 |
|
|
(48 |
) |
|
(447 |
) |
|
(150 |
) |
Interest expense, net |
(76 |
) |
|
(83 |
) |
|
(302 |
) |
|
(304 |
) |
Earnings from unconsolidated
affiliates |
116 |
|
|
130 |
|
|
447 |
|
|
474 |
|
Income tax expense |
2 |
|
|
3 |
|
|
— |
|
|
1 |
|
Net income attributable to
noncontrolling interests |
(1 |
) |
|
(1 |
) |
|
(4 |
) |
|
(4 |
) |
Net income (loss) attributable to partners |
86 |
|
|
1 |
|
|
(306 |
) |
|
17 |
|
Series A preferred partner's
interest in net income |
(9 |
) |
|
(9 |
) |
|
(37 |
) |
|
(37 |
) |
Series B preferred partner's
interest in net income |
(4 |
) |
|
(4 |
) |
|
(13 |
) |
|
(13 |
) |
Series C preferred partner's
interest in net income |
(2 |
) |
|
(2 |
) |
|
(9 |
) |
|
(9 |
) |
General partner's interest in
net income |
— |
|
|
— |
|
|
— |
|
|
(118 |
) |
Net income (loss) allocable to
limited partners |
$ |
71 |
|
|
$ |
(14 |
) |
|
$ |
(365 |
) |
|
$ |
(160 |
) |
Net income (loss) per limited
partner unit — basic and diluted |
$ |
0.34 |
|
|
$ |
(0.08 |
) |
|
$ |
(1.75 |
) |
|
$ |
(1.05 |
) |
Weighted-average limited
partner units outstanding — basic |
208.4 |
|
|
143.3 |
|
|
208.3 |
|
|
153.1 |
|
Weighted-average limited
partner units outstanding — diluted |
208.7 |
|
|
143.3 |
|
|
208.3 |
|
|
153.1 |
|
|
December 31, |
|
December 31, |
2020 |
|
2019 |
|
|
|
|
(Millions) |
Cash and cash equivalents |
$ |
52 |
|
|
$ |
1 |
|
Other current assets |
956 |
|
|
1,079 |
|
Property, plant and equipment,
net |
7,993 |
|
|
8,811 |
|
Other long-term assets |
3,956 |
|
|
4,236 |
|
Total assets |
$ |
12,957 |
|
|
$ |
14,127 |
|
|
|
|
|
Current liabilities |
$ |
1,116 |
|
|
$ |
1,190 |
|
Current debt |
505 |
|
|
603 |
|
Long-term debt |
5,119 |
|
|
5,321 |
|
Other long-term
liabilities |
356 |
|
|
380 |
|
Partners' equity |
5,834 |
|
|
6,605 |
|
Noncontrolling interests |
27 |
|
|
28 |
|
Total liabilities and
equity |
$ |
12,957 |
|
|
$ |
14,127 |
|
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
Three Months EndedDecember 31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
(Millions) |
Reconciliation of
Non-GAAP Financial Measures: |
|
|
|
|
|
|
|
Net income (loss) attributable to partners |
$ |
86 |
|
|
$ |
1 |
|
|
$ |
(306 |
) |
|
$ |
17 |
|
Interest expense, net |
76 |
|
|
83 |
|
|
302 |
|
|
304 |
|
Depreciation, amortization and income tax expense, net of
noncontrolling interests |
89 |
|
|
97 |
|
|
375 |
|
|
402 |
|
Distributions from unconsolidated affiliates, net of earnings |
26 |
|
|
12 |
|
|
184 |
|
|
66 |
|
Asset impairments |
— |
|
|
— |
|
|
746 |
|
|
247 |
|
Other non-cash charges |
1 |
|
|
— |
|
|
6 |
|
|
6 |
|
Loss on sale of assets |
— |
|
|
66 |
|
|
— |
|
|
80 |
|
Non-cash commodity derivative mark-to-market |
11 |
|
|
37 |
|
|
(55 |
) |
|
78 |
|
Adjusted EBITDA |
289 |
|
|
296 |
|
|
1,252 |
|
|
1,200 |
|
Interest expense, net |
(76 |
) |
|
(83 |
) |
|
(302 |
) |
|
(304 |
) |
Sustaining capital expenditures, net of noncontrolling interest
portion and reimbursable projects (a) |
(22 |
) |
|
(27 |
) |
|
(45 |
) |
|
(83 |
) |
Distributions to preferred limited partners (b) |
(15 |
) |
|
(15 |
) |
|
(59 |
) |
|
(59 |
) |
Other, net |
2 |
|
|
4 |
|
|
4 |
|
|
8 |
|
Distributable cash flow |
178 |
|
|
175 |
|
|
850 |
|
|
762 |
|
Distributions to limited partners and general partner |
(81 |
) |
|
(155 |
) |
|
(406 |
) |
|
(618 |
) |
Expansion capital expenditures and equity investments, net of
reimbursable projects |
(12 |
) |
|
(203 |
) |
|
(205 |
) |
|
(887 |
) |
Other, net |
— |
|
|
— |
|
|
(2 |
) |
|
(3 |
) |
Excess free cash flow |
$ |
85 |
|
|
$ |
(183 |
) |
|
$ |
237 |
|
|
$ |
(746 |
) |
|
|
|
|
|
|
|
|
Net cash provided by operating
activities |
$ |
308 |
|
|
$ |
222 |
|
|
$ |
1,099 |
|
|
$ |
859 |
|
Interest expense, net |
76 |
|
|
83 |
|
|
302 |
|
|
304 |
|
Net changes in operating assets and liabilities |
(108 |
) |
|
(30 |
) |
|
(73 |
) |
|
(20 |
) |
Non-cash commodity derivative mark-to-market |
11 |
|
|
37 |
|
|
(55 |
) |
|
78 |
|
Other, net |
2 |
|
|
(16 |
) |
|
(21 |
) |
|
(21 |
) |
Adjusted EBITDA |
289 |
|
|
296 |
|
|
1,252 |
|
|
1,200 |
|
Interest expense, net |
(76 |
) |
|
(83 |
) |
|
(302 |
) |
|
(304 |
) |
Sustaining capital expenditures, net of noncontrolling interest
portion and reimbursable projects (a) |
(22 |
) |
|
(27 |
) |
|
(45 |
) |
|
(83 |
) |
Distributions to preferred limited partners (b) |
(15 |
) |
|
(15 |
) |
|
(59 |
) |
|
(59 |
) |
Other, net |
2 |
|
|
4 |
|
|
4 |
|
|
8 |
|
Distributable cash flow |
178 |
|
|
175 |
|
|
850 |
|
|
762 |
|
Distributions to limited partners and general partner |
(81 |
) |
|
(155 |
) |
|
(406 |
) |
|
(618 |
) |
Expansion capital expenditures and equity investments, net of
reimbursable projects |
(12 |
) |
|
(203 |
) |
|
(205 |
) |
|
(887 |
) |
Other, net |
— |
|
|
— |
|
|
(2 |
) |
|
(3 |
) |
Excess free cash flow |
$ |
85 |
|
|
$ |
(183 |
) |
|
$ |
237 |
|
|
$ |
(746 |
) |
|
(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 EndedDecember 31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
(Millions,
except as indicated) |
Logistics and Marketing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net
income attributable to partners |
$ |
158 |
|
|
$ |
149 |
|
|
$ |
777 |
|
|
$ |
605 |
|
Non-cash commodity derivative mark-to-market |
(3 |
) |
|
14 |
|
|
(78 |
) |
|
29 |
|
Depreciation and amortization expense |
4 |
|
|
9 |
|
|
13 |
|
|
19 |
|
Distributions from unconsolidated affiliates, net of earnings |
24 |
|
|
7 |
|
|
106 |
|
|
44 |
|
Asset impairments |
— |
|
|
— |
|
|
— |
|
|
35 |
|
Loss on sale of assets |
— |
|
|
— |
|
|
— |
|
|
10 |
|
Other charges |
— |
|
|
(1 |
) |
|
2 |
|
|
— |
|
Adjusted segment EBITDA |
$ |
183 |
|
|
$ |
178 |
|
|
$ |
820 |
|
|
$ |
742 |
|
|
|
|
|
|
|
|
|
Operating and financial
data: |
|
|
|
|
|
|
|
NGL pipelines throughput (MBbls/d) |
610 |
|
|
599 |
|
|
661 |
|
|
626 |
|
NGL fractionator throughput (MBbls/d) |
54 |
|
|
58 |
|
|
55 |
|
|
60 |
|
Operating and maintenance expense |
$ |
12 |
|
|
$ |
13 |
|
|
$ |
36 |
|
|
$ |
42 |
|
|
|
|
|
|
|
|
|
Gathering and
Processing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net income (loss)
attributable to partners |
$ |
85 |
|
|
$ |
12 |
|
|
$ |
(499 |
) |
|
$ |
22 |
|
Non-cash commodity derivative mark-to-market |
14 |
|
|
23 |
|
|
23 |
|
|
49 |
|
Depreciation and amortization expense, net of noncontrolling
interest |
80 |
|
|
83 |
|
|
332 |
|
|
354 |
|
Asset impairments |
— |
|
|
— |
|
|
746 |
|
|
212 |
|
Loss on sale of assets |
— |
|
|
66 |
|
|
— |
|
|
70 |
|
Distributions from unconsolidated affiliates, net of losses |
2 |
|
|
5 |
|
|
78 |
|
|
22 |
|
Other charges |
— |
|
|
1 |
|
|
3 |
|
|
6 |
|
Adjusted segment EBITDA |
$ |
181 |
|
|
$ |
190 |
|
|
$ |
683 |
|
|
$ |
735 |
|
|
|
|
|
|
|
|
|
Operating and financial
data: |
|
|
|
|
|
|
|
Natural gas wellhead (MMcf/d) |
4,442 |
|
|
4,998 |
|
|
4,558 |
|
|
4,941 |
|
NGL gross production (MBbls/d) |
414 |
|
|
404 |
|
|
400 |
|
|
417 |
|
Operating and maintenance expense |
$ |
143 |
|
|
$ |
162 |
|
|
$ |
554 |
|
|
$ |
664 |
|
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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