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(a) | Organization of Business |
(b) | Nature of Business |
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(a) | Basis of Presentation |
(b) | Adopted Accounting Standards |
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Consideration: | |||
Cash | $ | 783.6 | |
Total installment payable, net of discount of $79.1 million assuming payments made on January 7, 2017 and 2018 | 420.9 | ||
Contribution from ENLC | 237.1 | ||
Total consideration | $ | 1,441.6 | |
Purchase Price Allocation: | |||
Assets acquired: | |||
Current assets (including $12.8 million in cash) | $ | 23.0 | |
Property, plant and equipment | 406.1 | ||
Intangibles | 1,051.3 | ||
Liabilities assumed: | |||
Current liabilities | (38.8 | ) | |
Total identifiable net assets | $ | 1,441.6 |
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Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Six Months Ended June 30, 2017 | |||||||||||
Customer relationships, beginning of period | $ | 1,795.8 | $ | (171.6 | ) | $ | 1,624.2 | ||||
Amortization expense | — | (65.0 | ) | (65.0 | ) | ||||||
Customer relationships, end of period | $ | 1,795.8 | $ | (236.6 | ) | $ | 1,559.2 |
2017 (remaining) | $ | 61.7 | |
2018 | 123.4 | ||
2019 | 123.4 | ||
2020 | 123.4 | ||
2021 | 123.4 | ||
Thereafter | 1,003.9 | ||
Total | $ | 1,559.2 |
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June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Outstanding Principal | Premium (Discount) | Long-Term Debt | Outstanding Principal | Premium (Discount) | Long-Term Debt | ||||||||||||||||||
Partnership credit facility due 2020 (1) | $ | 166.0 | $ | — | $ | 166.0 | $ | 120.0 | $ | — | $ | 120.0 | |||||||||||
2.70% Senior unsecured notes due 2019 | 400.0 | (0.2 | ) | 399.8 | 400.0 | (0.3 | ) | 399.7 | |||||||||||||||
7.125% Senior unsecured notes due 2022 | — | — | — | 162.5 | 16.0 | 178.5 | |||||||||||||||||
4.40% Senior unsecured notes due 2024 | 550.0 | 2.3 | 552.3 | 550.0 | 2.5 | 552.5 | |||||||||||||||||
4.15% Senior unsecured notes due 2025 | 750.0 | (1.0 | ) | 749.0 | 750.0 | (1.1 | ) | 748.9 | |||||||||||||||
4.85% Senior unsecured notes due 2026 | 500.0 | (0.6 | ) | 499.4 | 500.0 | (0.7 | ) | 499.3 | |||||||||||||||
5.60% Senior unsecured notes due 2044 | 350.0 | (0.2 | ) | 349.8 | 350.0 | (0.2 | ) | 349.8 | |||||||||||||||
5.05% Senior unsecured notes due 2045 | 450.0 | (6.6 | ) | 443.4 | 450.0 | (6.6 | ) | 443.4 | |||||||||||||||
5.45% Senior unsecured notes due 2047 | 500.0 | (0.1 | ) | 499.9 | — | — | — | ||||||||||||||||
Debt classified as long-term | $ | 3,666.0 | $ | (6.4 | ) | $ | 3,659.6 | $ | 3,282.5 | $ | 9.6 | $ | 3,292.1 | ||||||||||
Debt issuance cost (2) | (27.9 | ) | (24.1 | ) | |||||||||||||||||||
Long-term debt, net of unamortized issuance cost | $ | 3,631.7 | $ | 3,268.0 |
(1) | Bears interest based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was 2.8% and 2.3% at June 30, 2017 and December 31, 2016, respectively. |
(2) | Net of amortization of $10.2 million and $8.3 million at June 30, 2017 and December 31, 2016, respectively. |
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(a) | Issuance of Common Units |
(b) | Distributions |
Declaration period | Distribution paid-in kind (1) | Date paid/payable | ||
2017 | ||||
Fourth Quarter of 2016 | 1,130,131 | February 13, 2017 | ||
First Quarter of 2017 | 1,154,147 | May 12, 2017 | ||
Second Quarter of 2017 | 1,178,672 | August 11, 2017 | ||
2016 | ||||
First Quarter of 2016 | 992,445 | May 12, 2016 | ||
Second Quarter of 2016 | 1,083,589 | August 11, 2016 |
(1) | Represents distributions paid on the Preferred Units through issuance of additional Preferred Units. |
Declaration period | Distribution/unit | Date paid/payable | |||
2017 | |||||
Fourth Quarter of 2016 | $ | 0.39 | February 13, 2017 | ||
First Quarter of 2017 | $ | 0.39 | May 12, 2017 | ||
Second Quarter of 2017 | $ | 0.39 | August 11, 2017 | ||
2016 | |||||
Fourth Quarter of 2015 | $ | 0.39 | February 11, 2016 | ||
First Quarter of 2016 | $ | 0.39 | May 12, 2016 | ||
Second Quarter of 2016 | $ | 0.39 | August 11, 2016 |
(c) | Earnings Per Unit and Dilution Computations |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Limited partners’ interest in net loss | $ | (0.5 | ) | $ | (23.5 | ) | $ | (9.8 | ) | $ | (590.7 | ) | |||
Distributed earnings allocated to: | |||||||||||||||
Common units (1) (2) | $ | 135.3 | $ | 128.6 | $ | 269.3 | $ | 255.5 | |||||||
Unvested restricted units (1) (2) | 1.0 | 0.9 | 1.9 | 1.7 | |||||||||||
Total distributed earnings | $ | 136.3 | $ | 129.5 | $ | 271.2 | $ | 257.2 | |||||||
Undistributed loss allocated to: | |||||||||||||||
Common units | $ | (135.8 | ) | $ | (151.6 | ) | $ | (279.0 | ) | $ | (842.3 | ) | |||
Unvested restricted units | (1.0 | ) | (1.4 | ) | (2.0 | ) | (5.6 | ) | |||||||
Total undistributed loss | $ | (136.8 | ) | $ | (153.0 | ) | $ | (281.0 | ) | $ | (847.9 | ) | |||
Net loss allocated to: | |||||||||||||||
Common units | $ | (0.5 | ) | $ | (23.0 | ) | $ | (9.7 | ) | $ | (586.8 | ) | |||
Unvested restricted units | — | (0.5 | ) | (0.1 | ) | (3.9 | ) | ||||||||
Total limited partners’ interest in net loss | $ | (0.5 | ) | $ | (23.5 | ) | $ | (9.8 | ) | $ | (590.7 | ) | |||
Basic and diluted net loss per unit: | |||||||||||||||
Basic | $ | — | $ | (0.07 | ) | $ | (0.03 | ) | $ | (1.80 | ) | ||||
Diluted | $ | — | $ | (0.07 | ) | $ | (0.03 | ) | $ | (1.80 | ) |
(1) | For the three months ended June 30, 2017 and 2016, distributed earnings included a declared distribution of $0.39 per unit payable on August 11, 2017 and a distribution of $0.39 per unit paid on August 11, 2016, respectively. |
(2) | For the six months ended June 30, 2017, distributed earnings included a distribution of $0.39 per unit paid on May 12, 2017 and a declared distribution of $0.39 per unit payable on August 11, 2017. For the six months ended June 30, 2016, distributed earnings included distributions of $0.39 per unit paid on May 12, 2016 and $0.39 per unit paid on August 11, 2016. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Basic weighted average units outstanding: | |||||||||||
Weighted average limited partner basic common units outstanding (1) | 346.9 | 330.1 | 345.2 | 327.6 | |||||||
Diluted weighted average units outstanding: | |||||||||||
Weighted average limited partner basic common units outstanding (1) | 346.9 | 330.1 | 345.2 | 327.6 | |||||||
Dilutive effect of non-vested restricted units (2) | — | — | — | — | |||||||
Total weighted average limited partner diluted common units outstanding | 346.9 | 330.1 | 345.2 | 327.6 |
(1) | For the three and six months ended June 30, 2016, weighted average limited partner basic common units outstanding included the weighted average impact of 7,409,996 and 7,298,996 Common Class C Common Units, respectively, that converted into common units on May 13, 2016. |
(2) | All common unit equivalents were antidilutive for the three and six months ended June 30, 2017 and 2016 because the limited partners were allocated a net loss. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Income allocation for incentive distributions | $ | 14.6 | $ | 14.2 | $ | 29.3 | $ | 28.0 | |||||||
Unit-based compensation attributable to ENLC’s restricted units | (3.9 | ) | (3.6 | ) | (12.7 | ) | (7.6 | ) | |||||||
General partner share of net income (loss) | 0.1 | — | 0.1 | (2.4 | ) | ||||||||||
General partner interest in net income | $ | 10.8 | $ | 10.6 | $ | 16.7 | $ | 18.0 |
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Six Months Ended June 30, 2017 | |||
Balance, beginning of period | $ | 13.5 | |
Accretion expense | 0.3 | ||
Balance, end of period | $ | 13.8 |
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• | a contractual right to the economic benefits and burdens associated with Devon’s 38.75% ownership interest in Gulf Coast Fractionators (“GCF”) at June 30, 2017 and December 31, 2016; |
• | an approximate 30.0% ownership in Cedar Cove Midstream LLC (the “Cedar Cove JV”) at June 30, 2017 and December 31, 2016. On November 9, 2016, we formed the Cedar Cove JV with Kinder Morgan, Inc., which consists of gathering and compression assets in Blaine County, Oklahoma, the heart of the Sooner Trend Anadarko Basin Canadian and Kingfisher Counties play; and |
• | an approximate 31.0% common unit ownership interest in Howard Energy Partners (“HEP”) at December 31, 2016. In December 2016, we entered into an agreement to sell our ownership interest in HEP. We finalized the sale in March 2017 and received net proceeds of $189.7 million. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Gulf Coast Fractionators | |||||||||||||||
Contributions | $ | — | $ | — | $ | — | $ | — | |||||||
Distributions | $ | 4.4 | $ | 0.5 | $ | 7.1 | $ | 3.5 | |||||||
Equity in income (loss) | $ | — | $ | 0.5 | $ | 4.0 | $ | (1.2 | ) | ||||||
Howard Energy Partners | |||||||||||||||
Contributions | $ | — | $ | 34.7 | $ | — | $ | 41.8 | |||||||
Distributions | $ | — | $ | 5.1 | $ | — | $ | 11.3 | |||||||
Equity in income (loss) (1) | $ | — | $ | 0.3 | $ | (3.4 | ) | $ | (0.4 | ) | |||||
Cedar Cove JV | |||||||||||||||
Contributions | $ | 4.3 | $ | — | $ | 10.3 | $ | — | |||||||
Distributions | $ | 0.1 | $ | — | $ | 0.3 | $ | — | |||||||
Equity in loss | $ | (0.1 | ) | $ | — | $ | — | $ | — | ||||||
Total | |||||||||||||||
Contributions | $ | 4.3 | $ | 34.7 | $ | 10.3 | $ | 41.8 | |||||||
Distributions | $ | 4.5 | $ | 5.6 | $ | 7.4 | $ | 14.8 | |||||||
Equity in income (loss) (1) | $ | (0.1 | ) | $ | 0.8 | $ | 0.6 | $ | (1.6 | ) |
(1) | Includes a loss of $3.4 million for the six months ended June 30, 2017 from the sale of HEP in March 2017. |
June 30, 2017 | December 31, 2016 | ||||||
Gulf Coast Fractionators | $ | 45.4 | $ | 48.5 | |||
Howard Energy Partners | — | 193.1 | |||||
Cedar Cove JV | 38.8 | 28.8 | |||||
Total investment in unconsolidated affiliates | $ | 84.2 | $ | 270.4 |
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(a) | Long-Term Incentive Plans |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of unit-based compensation charged to general and administrative expense | $ | 6.7 | $ | 5.7 | $ | 21.0 | $ | 11.9 | |||||||
Cost of unit-based compensation charged to operating expense | 2.6 | 1.6 | 7.6 | 3.3 | |||||||||||
Total unit-based compensation expense | $ | 9.3 | $ | 7.3 | $ | 28.6 | $ | 15.2 |
(b) | EnLink Midstream Partners, LP Restricted Incentive Units |
Six Months Ended June 30, 2017 | ||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 2,024,820 | $ | 19.05 | |||||
Granted (1) | 841,069 | 18.44 | ||||||
Vested (1)(2) | (813,267 | ) | 25.78 | |||||
Forfeited | (29,669 | ) | 16.87 | |||||
Non-vested, end of period | 2,022,953 | $ | 16.12 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 34.3 |
(1) | Restricted incentive units typically vest at the end of three years. In March 2017, we granted 262,288 restricted incentive units with a fair value of $5.1 million to officers and certain employees as bonus payments for 2016, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. |
(2) | Vested units included 263,342 units withheld for payroll taxes paid on behalf of employees. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.4 | $ | 0.1 | $ | 15.7 | $ | 3.8 | ||||||||
Fair value of units vested | $ | 0.5 | $ | — | $ | 21.0 | $ | 9.0 |
(c) | EnLink Midstream Partners, LP Performance Units |
EnLink Midstream Partners, LP Performance Units: | March 2017 | |||
Beginning TSR Price | $ | 17.55 | ||
Risk-free interest rate | 1.62 | % | ||
Volatility factor | 43.94 | % | ||
Distribution yield | 8.7 | % |
Six Months Ended June 30, 2017 | ||||||||
EnLink Midstream Partners, LP Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 408,637 | $ | 11.53 | |||||
Granted | 176,648 | 25.73 | ||||||
Forfeited | — | — | ||||||
Non-vested, end of period | 585,285 | $ | 15.82 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 9.9 |
(d) | EnLink Midstream, LLC Restricted Incentive Units |
Six Months Ended June 30, 2017 | ||||||||
EnLink Midstream, LLC Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 1,897,298 | $ | 19.96 | |||||
Granted (1) | 799,499 | 19.27 | ||||||
Vested (1)(2) | (743,484 | ) | 27.98 | |||||
Forfeited | (28,838 | ) | 17.31 | |||||
Non-vested, end of period | 1,924,475 | $ | 16.61 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 33.9 |
(1) | Restricted incentive units typically vest at the end of three years. In March 2017, ENLC granted 258,606 restricted incentive units with a fair value of $5.0 million to officers and certain employees as bonus payments for 2016, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. |
(2) | Vested units included 229,455 units withheld for payroll taxes paid on behalf of employees. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
EnLink Midstream, LLC Restricted Incentive Units: | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.3 | $ | — | $ | 14.6 | $ | 3.8 | ||||||||
Fair value of units vested | $ | 0.4 | $ | — | $ | 20.8 | $ | 11.8 |
(e) | EnLink Midstream, LLC’s Performance Units |
EnLink Midstream, LLC Performance Units: | March 2017 | |||
Beginning TSR Price | $ | 18.29 | ||
Risk-free interest rate | 1.62 | % | ||
Volatility factor | 52.07 | % | ||
Distribution yield | 5.4 | % |
Six Months Ended June 30, 2017 | ||||||||
EnLink Midstream, LLC Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 384,264 | $ | 19.30 | |||||
Granted | 164,575 | 28.77 | ||||||
Forfeited | — | — | ||||||
Non-vested, end of period | 548,839 | $ | 22.14 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 9.7 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Change in fair value of derivatives | $ | 1.8 | $ | (8.4 | ) | $ | 7.1 | $ | (14.4 | ) | |||||
Realized gain (loss) on derivatives | (0.2 | ) | 2.7 | (2.7 | ) | 8.3 | |||||||||
Gain (loss) on derivative activity | $ | 1.6 | $ | (5.7 | ) | $ | 4.4 | $ | (6.1 | ) |
June 30, 2017 | December 31, 2016 | ||||||
Fair value of derivative assets — current | $ | 4.0 | $ | 1.3 | |||
Fair value of derivative assets — long-term | 0.7 | — | |||||
Fair value of derivative liabilities — current | (3.6 | ) | (7.6 | ) | |||
Fair value of derivative liabilities — long-term | (0.3 | ) | — | ||||
Net fair value of derivatives | $ | 0.8 | $ | (6.3 | ) |
June 30, 2017 | |||||||||||
Commodity | Instruments | Unit | Volume | Fair Value | |||||||
NGL (short contracts) | Swaps | Gallons | (44.6 | ) | $ | 1.4 | |||||
NGL (long contracts) | Swaps | Gallons | 27.4 | (1.8 | ) | ||||||
Natural Gas (short contracts) | Swaps | MMBtu | (23.0 | ) | 1.2 | ||||||
Natural Gas (long contracts) | Swaps | MMBtu | 19.4 | — | |||||||
Total fair value of derivatives | $ | 0.8 |
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Level 2 | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Commodity Swaps (1) | $ | 0.8 | $ | (6.3 | ) | ||
Total | $ | 0.8 | $ | (6.3 | ) |
(1) | The fair values of derivative contracts included in assets or liabilities for risk management activities represent the amount at which the instruments could be exchanged in a current arms-length transaction adjusted for our credit risk and/or the counterparty credit risk as required under ASC 820. |
June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt (1) | $ | 3,631.7 | $ | 3,692.4 | $ | 3,268.0 | $ | 3,225.8 | |||||||
Installment Payables | $ | 236.6 | $ | 238.0 | $ | 473.2 | $ | 476.6 | |||||||
Obligations under capital lease | $ | 4.8 | $ | 4.0 | $ | 6.6 | $ | 6.1 |
(1) | The carrying value of long-term debt is reduced by debt issuance costs of $27.9 million and $24.1 million at June 30, 2017 and December 31, 2016, respectively. The respective fair values do not factor in debt issuance costs. |
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(a) | Severance and Change in Control Agreements |
(b) | Environmental Issues |
(c) | Litigation Contingencies |
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Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
Three Months Ended June 30, 2017 | |||||||||||||||||||||||
Product sales | $ | 74.6 | $ | 548.7 | $ | 27.7 | $ | 276.2 | $ | — | $ | 927.2 | |||||||||||
Product sales—related parties | 115.5 | 5.4 | 62.4 | — | (154.0 | ) | 29.3 | ||||||||||||||||
Midstream services | 28.2 | 56.3 | 33.0 | 14.4 | — | 131.9 | |||||||||||||||||
Midstream services—related parties | 107.2 | 35.3 | 59.4 | 5.3 | (33.6 | ) | 173.6 | ||||||||||||||||
Cost of sales | (177.0 | ) | (575.7 | ) | (99.0 | ) | (268.3 | ) | 187.6 | (932.4 | ) | ||||||||||||
Operating expenses | (42.9 | ) | (24.6 | ) | (14.7 | ) | (20.4 | ) | — | (102.6 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 1.6 | 1.6 | |||||||||||||||||
Segment profit | $ | 105.6 | $ | 45.4 | $ | 68.8 | $ | 7.2 | $ | 1.6 | $ | 228.6 | |||||||||||
Depreciation and amortization | $ | (59.6 | ) | $ | (29.4 | ) | $ | (38.6 | ) | $ | (12.6 | ) | $ | (2.3 | ) | $ | (142.5 | ) | |||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 39.7 | $ | 15.6 | $ | 135.0 | $ | 13.7 | $ | 14.5 | $ | 218.5 | |||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 41.9 | $ | 399.5 | $ | 8.9 | $ | 288.0 | $ | — | $ | 738.3 | |||||||||||
Product sales—related parties | 72.7 | 15.2 | 22.5 | 0.9 | (79.6 | ) | 31.7 | ||||||||||||||||
Midstream services | 23.2 | 52.7 | 18.0 | 14.4 | — | 108.3 | |||||||||||||||||
Midstream services—related parties | 111.9 | 25.5 | 41.7 | 4.0 | (22.5 | ) | 160.6 | ||||||||||||||||
Cost of sales | (103.6 | ) | (425.5 | ) | (31.6 | ) | (273.8 | ) | 102.1 | (732.4 | ) | ||||||||||||
Operating expenses | (43.0 | ) | (25.4 | ) | (11.8 | ) | (19.9 | ) | — | (100.1 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (5.7 | ) | (5.7 | ) | |||||||||||||||
Segment profit (loss) | $ | 103.1 | $ | 42.0 | $ | 47.7 | $ | 13.6 | $ | (5.7 | ) | $ | 200.7 | ||||||||||
Depreciation and amortization | $ | (48.7 | ) | $ | (28.6 | ) | $ | (34.8 | ) | $ | (10.6 | ) | $ | (2.2 | ) | $ | (124.9 | ) | |||||
Goodwill | $ | 231.1 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 421.4 | |||||||||||
Capital expenditures | $ | 57.2 | $ | 14.1 | $ | 63.1 | $ | 0.9 | $ | 4.9 | $ | 140.2 |
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
Six Months Ended June 30, 2017 | |||||||||||||||||||||||
Product sales | $ | 159.7 | $ | 1,093.2 | $ | 42.2 | $ | 622.1 | $ | — | $ | 1,917.2 | |||||||||||
Product sales—related parties | 222.0 | 15.6 | 126.8 | 0.8 | (293.2 | ) | 72.0 | ||||||||||||||||
Midstream services | 56.0 | 109.4 | 60.9 | 33.0 | — | 259.3 | |||||||||||||||||
Midstream services—related parties | 212.3 | 64.3 | 108.8 | 8.6 | (61.4 | ) | 332.6 | ||||||||||||||||
Cost of sales | (356.2 | ) | (1,140.4 | ) | (187.7 | ) | (605.0 | ) | 354.6 | (1,934.7 | ) | ||||||||||||
Operating expenses | (86.8 | ) | (50.0 | ) | (28.8 | ) | (41.1 | ) | — | (206.7 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 4.4 | 4.4 | |||||||||||||||||
Segment profit | $ | 207.0 | $ | 92.1 | $ | 122.2 | $ | 18.4 | $ | 4.4 | $ | 444.1 | |||||||||||
Depreciation and amortization | $ | (109.4 | ) | $ | (57.5 | ) | $ | (75.1 | ) | $ | (24.1 | ) | $ | (4.7 | ) | $ | (270.8 | ) | |||||
Impairments | $ | — | $ | — | $ | — | $ | (7.0 | ) | $ | — | $ | (7.0 | ) | |||||||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 68.0 | $ | 48.3 | $ | 275.7 | $ | 51.1 | $ | 23.5 | $ | 466.6 | |||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 104.4 | $ | 687.2 | $ | 16.7 | $ | 518.5 | $ | — | $ | 1,326.8 | |||||||||||
Product sales—related parties | 110.0 | 22.6 | 33.1 | 1.1 | (110.6 | ) | 56.2 | ||||||||||||||||
Midstream services | 50.6 | 107.9 | 33.1 | 31.2 | — | 222.8 | |||||||||||||||||
Midstream services—related parties | 222.2 | 38.2 | 86.7 | 9.2 | (33.1 | ) | 323.2 | ||||||||||||||||
Cost of sales | (194.9 | ) | (727.6 | ) | (50.9 | ) | (488.9 | ) | 143.7 | (1,318.6 | ) | ||||||||||||
Operating expenses | (82.3 | ) | (48.7 | ) | (24.6 | ) | (42.7 | ) | — | (198.3 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (6.1 | ) | (6.1 | ) | |||||||||||||||
Segment profit (loss) | $ | 210.0 | $ | 79.6 | $ | 94.1 | $ | 28.4 | $ | (6.1 | ) | $ | 406.0 | ||||||||||
Depreciation and amortization | $ | (94.9 | ) | $ | (57.9 | ) | $ | (68.6 | ) | $ | (21.0 | ) | $ | (4.4 | ) | $ | (246.8 | ) | |||||
Impairments | $ | (473.1 | ) | $ | — | $ | — | $ | (93.2 | ) | $ | — | $ | (566.3 | ) | ||||||||
Goodwill | $ | 231.1 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 421.4 | |||||||||||
Capital expenditures | $ | 80.5 | $ | 36.8 | $ | 132.3 | $ | 4.2 | $ | 6.8 | $ | 260.6 |
Segment Identifiable Assets: | June 30, 2017 | December 31, 2016 | |||||
Texas | $ | 3,113.5 | $ | 3,142.6 | |||
Louisiana | 2,322.7 | 2,349.3 | |||||
Oklahoma | 2,731.4 | 2,524.5 | |||||
Crude and Condensate | 833.3 | 836.8 | |||||
Corporate | 135.2 | 300.2 | |||||
Total identifiable assets | $ | 9,136.1 | $ | 9,153.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment profits | $ | 228.6 | $ | 200.7 | $ | 444.1 | $ | 406.0 | |||||||
General and administrative expenses | (29.6 | ) | (29.1 | ) | (64.6 | ) | (62.3 | ) | |||||||
Gain (loss) on disposition of assets | 5.4 | (0.3 | ) | 0.3 | (0.1 | ) | |||||||||
Depreciation and amortization | (142.5 | ) | (124.9 | ) | (270.8 | ) | (246.8 | ) | |||||||
Impairments | — | — | (7.0 | ) | (566.3 | ) | |||||||||
Gain on litigation settlement | 8.5 | — | 26.0 | — | |||||||||||
Operating income (loss) | $ | 70.4 | $ | 46.4 | $ | 128.0 | $ | (469.5 | ) |
|
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Non-cash financing activities: | |||||||
Installment payable, net of discount of $79.1 million (1) | $ | — | $ | 420.9 | |||
Contribution from ENLC (2) | — | 237.1 |
(1) | We incurred installment purchase obligations, net of discount, payable to the seller in connection with the EnLink Oklahoma T.O. assets. We paid the first installment on January 6, 2017 and will pay the final installment no later than January 7, 2018. See “Note 3—Acquisition” for further discussion. |
(2) | Contribution from ENLC in connection with the acquisition of EnLink Oklahoma T.O. assets. See “Note 3—Acquisition” for further discussion. |
|
June 30, 2017 | December 31, 2016 | ||||||
Natural gas and NGLs inventory | $ | 42.1 | $ | 17.4 | |||
Prepaid expenses and other | 17.5 | 13.6 | |||||
Natural gas and NGLs inventory, prepaid expenses and other | $ | 59.6 | $ | 31.0 |
June 30, 2017 | December 31, 2016 | ||||||
Accrued interest | $ | 37.2 | $ | 34.2 | |||
Accrued wages and benefits, including taxes | 16.9 | 19.0 | |||||
Accrued ad valorem taxes | 23.2 | 23.5 | |||||
Capital expenditure accruals | 59.2 | 64.6 | |||||
Onerous performance obligations | 15.6 | 15.9 | |||||
Other | 61.9 | 59.8 | |||||
Other current liabilities | $ | 214.0 | $ | 217.0 |
|
|
Consideration: | |||
Cash | $ | 783.6 | |
Total installment payable, net of discount of $79.1 million assuming payments made on January 7, 2017 and 2018 | 420.9 | ||
Contribution from ENLC | 237.1 | ||
Total consideration | $ | 1,441.6 | |
Purchase Price Allocation: | |||
Assets acquired: | |||
Current assets (including $12.8 million in cash) | $ | 23.0 | |
Property, plant and equipment | 406.1 | ||
Intangibles | 1,051.3 | ||
Liabilities assumed: | |||
Current liabilities | (38.8 | ) | |
Total identifiable net assets | $ | 1,441.6 |
|
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Six Months Ended June 30, 2017 | |||||||||||
Customer relationships, beginning of period | $ | 1,795.8 | $ | (171.6 | ) | $ | 1,624.2 | ||||
Amortization expense | — | (65.0 | ) | (65.0 | ) | ||||||
Customer relationships, end of period | $ | 1,795.8 | $ | (236.6 | ) | $ | 1,559.2 |
2017 (remaining) | $ | 61.7 | |
2018 | 123.4 | ||
2019 | 123.4 | ||
2020 | 123.4 | ||
2021 | 123.4 | ||
Thereafter | 1,003.9 | ||
Total | $ | 1,559.2 |
|
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Outstanding Principal | Premium (Discount) | Long-Term Debt | Outstanding Principal | Premium (Discount) | Long-Term Debt | ||||||||||||||||||
Partnership credit facility due 2020 (1) | $ | 166.0 | $ | — | $ | 166.0 | $ | 120.0 | $ | — | $ | 120.0 | |||||||||||
2.70% Senior unsecured notes due 2019 | 400.0 | (0.2 | ) | 399.8 | 400.0 | (0.3 | ) | 399.7 | |||||||||||||||
7.125% Senior unsecured notes due 2022 | — | — | — | 162.5 | 16.0 | 178.5 | |||||||||||||||||
4.40% Senior unsecured notes due 2024 | 550.0 | 2.3 | 552.3 | 550.0 | 2.5 | 552.5 | |||||||||||||||||
4.15% Senior unsecured notes due 2025 | 750.0 | (1.0 | ) | 749.0 | 750.0 | (1.1 | ) | 748.9 | |||||||||||||||
4.85% Senior unsecured notes due 2026 | 500.0 | (0.6 | ) | 499.4 | 500.0 | (0.7 | ) | 499.3 | |||||||||||||||
5.60% Senior unsecured notes due 2044 | 350.0 | (0.2 | ) | 349.8 | 350.0 | (0.2 | ) | 349.8 | |||||||||||||||
5.05% Senior unsecured notes due 2045 | 450.0 | (6.6 | ) | 443.4 | 450.0 | (6.6 | ) | 443.4 | |||||||||||||||
5.45% Senior unsecured notes due 2047 | 500.0 | (0.1 | ) | 499.9 | — | — | — | ||||||||||||||||
Debt classified as long-term | $ | 3,666.0 | $ | (6.4 | ) | $ | 3,659.6 | $ | 3,282.5 | $ | 9.6 | $ | 3,292.1 | ||||||||||
Debt issuance cost (2) | (27.9 | ) | (24.1 | ) | |||||||||||||||||||
Long-term debt, net of unamortized issuance cost | $ | 3,631.7 | $ | 3,268.0 |
(1) | Bears interest based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was 2.8% and 2.3% at June 30, 2017 and December 31, 2016, respectively. |
(2) | Net of amortization of $10.2 million and $8.3 million at June 30, 2017 and December 31, 2016, respectively. |
|
Declaration period | Distribution paid-in kind (1) | Date paid/payable | ||
2017 | ||||
Fourth Quarter of 2016 | 1,130,131 | February 13, 2017 | ||
First Quarter of 2017 | 1,154,147 | May 12, 2017 | ||
Second Quarter of 2017 | 1,178,672 | August 11, 2017 | ||
2016 | ||||
First Quarter of 2016 | 992,445 | May 12, 2016 | ||
Second Quarter of 2016 | 1,083,589 | August 11, 2016 |
(1) | Represents distributions paid on the Preferred Units through issuance of additional Preferred Units. |
Declaration period | Distribution/unit | Date paid/payable | |||
2017 | |||||
Fourth Quarter of 2016 | $ | 0.39 | February 13, 2017 | ||
First Quarter of 2017 | $ | 0.39 | May 12, 2017 | ||
Second Quarter of 2017 | $ | 0.39 | August 11, 2017 | ||
2016 | |||||
Fourth Quarter of 2015 | $ | 0.39 | February 11, 2016 | ||
First Quarter of 2016 | $ | 0.39 | May 12, 2016 | ||
Second Quarter of 2016 | $ | 0.39 | August 11, 2016 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Limited partners’ interest in net loss | $ | (0.5 | ) | $ | (23.5 | ) | $ | (9.8 | ) | $ | (590.7 | ) | |||
Distributed earnings allocated to: | |||||||||||||||
Common units (1) (2) | $ | 135.3 | $ | 128.6 | $ | 269.3 | $ | 255.5 | |||||||
Unvested restricted units (1) (2) | 1.0 | 0.9 | 1.9 | 1.7 | |||||||||||
Total distributed earnings | $ | 136.3 | $ | 129.5 | $ | 271.2 | $ | 257.2 | |||||||
Undistributed loss allocated to: | |||||||||||||||
Common units | $ | (135.8 | ) | $ | (151.6 | ) | $ | (279.0 | ) | $ | (842.3 | ) | |||
Unvested restricted units | (1.0 | ) | (1.4 | ) | (2.0 | ) | (5.6 | ) | |||||||
Total undistributed loss | $ | (136.8 | ) | $ | (153.0 | ) | $ | (281.0 | ) | $ | (847.9 | ) | |||
Net loss allocated to: | |||||||||||||||
Common units | $ | (0.5 | ) | $ | (23.0 | ) | $ | (9.7 | ) | $ | (586.8 | ) | |||
Unvested restricted units | — | (0.5 | ) | (0.1 | ) | (3.9 | ) | ||||||||
Total limited partners’ interest in net loss | $ | (0.5 | ) | $ | (23.5 | ) | $ | (9.8 | ) | $ | (590.7 | ) | |||
Basic and diluted net loss per unit: | |||||||||||||||
Basic | $ | — | $ | (0.07 | ) | $ | (0.03 | ) | $ | (1.80 | ) | ||||
Diluted | $ | — | $ | (0.07 | ) | $ | (0.03 | ) | $ | (1.80 | ) |
(1) | For the three months ended June 30, 2017 and 2016, distributed earnings included a declared distribution of $0.39 per unit payable on August 11, 2017 and a distribution of $0.39 per unit paid on August 11, 2016, respectively. |
(2) | For the six months ended June 30, 2017, distributed earnings included a distribution of $0.39 per unit paid on May 12, 2017 and a declared distribution of $0.39 per unit payable on August 11, 2017. For the six months ended June 30, 2016, distributed earnings included distributions of $0.39 per unit paid on May 12, 2016 and $0.39 per unit paid on August 11, 2016. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Basic weighted average units outstanding: | |||||||||||
Weighted average limited partner basic common units outstanding (1) | 346.9 | 330.1 | 345.2 | 327.6 | |||||||
Diluted weighted average units outstanding: | |||||||||||
Weighted average limited partner basic common units outstanding (1) | 346.9 | 330.1 | 345.2 | 327.6 | |||||||
Dilutive effect of non-vested restricted units (2) | — | — | — | — | |||||||
Total weighted average limited partner diluted common units outstanding | 346.9 | 330.1 | 345.2 | 327.6 |
(1) | For the three and six months ended June 30, 2016, weighted average limited partner basic common units outstanding included the weighted average impact of 7,409,996 and 7,298,996 Common Class C Common Units, respectively, that converted into common units on May 13, 2016. |
(2) | All common unit equivalents were antidilutive for the three and six months ended June 30, 2017 and 2016 because the limited partners were allocated a net loss. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Income allocation for incentive distributions | $ | 14.6 | $ | 14.2 | $ | 29.3 | $ | 28.0 | |||||||
Unit-based compensation attributable to ENLC’s restricted units | (3.9 | ) | (3.6 | ) | (12.7 | ) | (7.6 | ) | |||||||
General partner share of net income (loss) | 0.1 | — | 0.1 | (2.4 | ) | ||||||||||
General partner interest in net income | $ | 10.8 | $ | 10.6 | $ | 16.7 | $ | 18.0 |
|
Six Months Ended June 30, 2017 | |||
Balance, beginning of period | $ | 13.5 | |
Accretion expense | 0.3 | ||
Balance, end of period | $ | 13.8 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Gulf Coast Fractionators | |||||||||||||||
Contributions | $ | — | $ | — | $ | — | $ | — | |||||||
Distributions | $ | 4.4 | $ | 0.5 | $ | 7.1 | $ | 3.5 | |||||||
Equity in income (loss) | $ | — | $ | 0.5 | $ | 4.0 | $ | (1.2 | ) | ||||||
Howard Energy Partners | |||||||||||||||
Contributions | $ | — | $ | 34.7 | $ | — | $ | 41.8 | |||||||
Distributions | $ | — | $ | 5.1 | $ | — | $ | 11.3 | |||||||
Equity in income (loss) (1) | $ | — | $ | 0.3 | $ | (3.4 | ) | $ | (0.4 | ) | |||||
Cedar Cove JV | |||||||||||||||
Contributions | $ | 4.3 | $ | — | $ | 10.3 | $ | — | |||||||
Distributions | $ | 0.1 | $ | — | $ | 0.3 | $ | — | |||||||
Equity in loss | $ | (0.1 | ) | $ | — | $ | — | $ | — | ||||||
Total | |||||||||||||||
Contributions | $ | 4.3 | $ | 34.7 | $ | 10.3 | $ | 41.8 | |||||||
Distributions | $ | 4.5 | $ | 5.6 | $ | 7.4 | $ | 14.8 | |||||||
Equity in income (loss) (1) | $ | (0.1 | ) | $ | 0.8 | $ | 0.6 | $ | (1.6 | ) |
(1) | Includes a loss of $3.4 million for the six months ended June 30, 2017 from the sale of HEP in March 2017. |
June 30, 2017 | December 31, 2016 | ||||||
Gulf Coast Fractionators | $ | 45.4 | $ | 48.5 | |||
Howard Energy Partners | — | 193.1 | |||||
Cedar Cove JV | 38.8 | 28.8 | |||||
Total investment in unconsolidated affiliates | $ | 84.2 | $ | 270.4 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of unit-based compensation charged to general and administrative expense | $ | 6.7 | $ | 5.7 | $ | 21.0 | $ | 11.9 | |||||||
Cost of unit-based compensation charged to operating expense | 2.6 | 1.6 | 7.6 | 3.3 | |||||||||||
Total unit-based compensation expense | $ | 9.3 | $ | 7.3 | $ | 28.6 | $ | 15.2 |
Six Months Ended June 30, 2017 | ||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 2,024,820 | $ | 19.05 | |||||
Granted (1) | 841,069 | 18.44 | ||||||
Vested (1)(2) | (813,267 | ) | 25.78 | |||||
Forfeited | (29,669 | ) | 16.87 | |||||
Non-vested, end of period | 2,022,953 | $ | 16.12 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 34.3 |
(1) | Restricted incentive units typically vest at the end of three years. In March 2017, we granted 262,288 restricted incentive units with a fair value of $5.1 million to officers and certain employees as bonus payments for 2016, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. |
(2) | Vested units included 263,342 units withheld for payroll taxes paid on behalf of employees. |
Six Months Ended June 30, 2017 | ||||||||
EnLink Midstream, LLC Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 1,897,298 | $ | 19.96 | |||||
Granted (1) | 799,499 | 19.27 | ||||||
Vested (1)(2) | (743,484 | ) | 27.98 | |||||
Forfeited | (28,838 | ) | 17.31 | |||||
Non-vested, end of period | 1,924,475 | $ | 16.61 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 33.9 |
(1) | Restricted incentive units typically vest at the end of three years. In March 2017, ENLC granted 258,606 restricted incentive units with a fair value of $5.0 million to officers and certain employees as bonus payments for 2016, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. |
(2) | Vested units included 229,455 units withheld for payroll taxes paid on behalf of employees. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.4 | $ | 0.1 | $ | 15.7 | $ | 3.8 | ||||||||
Fair value of units vested | $ | 0.5 | $ | — | $ | 21.0 | $ | 9.0 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
EnLink Midstream, LLC Restricted Incentive Units: | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.3 | $ | — | $ | 14.6 | $ | 3.8 | ||||||||
Fair value of units vested | $ | 0.4 | $ | — | $ | 20.8 | $ | 11.8 |
EnLink Midstream Partners, LP Performance Units: | March 2017 | |||
Beginning TSR Price | $ | 17.55 | ||
Risk-free interest rate | 1.62 | % | ||
Volatility factor | 43.94 | % | ||
Distribution yield | 8.7 | % |
EnLink Midstream, LLC Performance Units: | March 2017 | |||
Beginning TSR Price | $ | 18.29 | ||
Risk-free interest rate | 1.62 | % | ||
Volatility factor | 52.07 | % | ||
Distribution yield | 5.4 | % |
Six Months Ended June 30, 2017 | ||||||||
EnLink Midstream Partners, LP Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 408,637 | $ | 11.53 | |||||
Granted | 176,648 | 25.73 | ||||||
Forfeited | — | — | ||||||
Non-vested, end of period | 585,285 | $ | 15.82 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 9.9 |
Six Months Ended June 30, 2017 | ||||||||
EnLink Midstream, LLC Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 384,264 | $ | 19.30 | |||||
Granted | 164,575 | 28.77 | ||||||
Forfeited | — | — | ||||||
Non-vested, end of period | 548,839 | $ | 22.14 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 9.7 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Change in fair value of derivatives | $ | 1.8 | $ | (8.4 | ) | $ | 7.1 | $ | (14.4 | ) | |||||
Realized gain (loss) on derivatives | (0.2 | ) | 2.7 | (2.7 | ) | 8.3 | |||||||||
Gain (loss) on derivative activity | $ | 1.6 | $ | (5.7 | ) | $ | 4.4 | $ | (6.1 | ) |
June 30, 2017 | December 31, 2016 | ||||||
Fair value of derivative assets — current | $ | 4.0 | $ | 1.3 | |||
Fair value of derivative assets — long-term | 0.7 | — | |||||
Fair value of derivative liabilities — current | (3.6 | ) | (7.6 | ) | |||
Fair value of derivative liabilities — long-term | (0.3 | ) | — | ||||
Net fair value of derivatives | $ | 0.8 | $ | (6.3 | ) |
June 30, 2017 | |||||||||||
Commodity | Instruments | Unit | Volume | Fair Value | |||||||
NGL (short contracts) | Swaps | Gallons | (44.6 | ) | $ | 1.4 | |||||
NGL (long contracts) | Swaps | Gallons | 27.4 | (1.8 | ) | ||||||
Natural Gas (short contracts) | Swaps | MMBtu | (23.0 | ) | 1.2 | ||||||
Natural Gas (long contracts) | Swaps | MMBtu | 19.4 | — | |||||||
Total fair value of derivatives | $ | 0.8 |
|
Level 2 | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Commodity Swaps (1) | $ | 0.8 | $ | (6.3 | ) | ||
Total | $ | 0.8 | $ | (6.3 | ) |
(1) | The fair values of derivative contracts included in assets or liabilities for risk management activities represent the amount at which the instruments could be exchanged in a current arms-length transaction adjusted for our credit risk and/or the counterparty credit risk as required under ASC 820. |
June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt (1) | $ | 3,631.7 | $ | 3,692.4 | $ | 3,268.0 | $ | 3,225.8 | |||||||
Installment Payables | $ | 236.6 | $ | 238.0 | $ | 473.2 | $ | 476.6 | |||||||
Obligations under capital lease | $ | 4.8 | $ | 4.0 | $ | 6.6 | $ | 6.1 |
(1) | The carrying value of long-term debt is reduced by debt issuance costs of $27.9 million and $24.1 million at June 30, 2017 and December 31, 2016, respectively. The respective fair values do not factor in debt issuance costs. |
|
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
Three Months Ended June 30, 2017 | |||||||||||||||||||||||
Product sales | $ | 74.6 | $ | 548.7 | $ | 27.7 | $ | 276.2 | $ | — | $ | 927.2 | |||||||||||
Product sales—related parties | 115.5 | 5.4 | 62.4 | — | (154.0 | ) | 29.3 | ||||||||||||||||
Midstream services | 28.2 | 56.3 | 33.0 | 14.4 | — | 131.9 | |||||||||||||||||
Midstream services—related parties | 107.2 | 35.3 | 59.4 | 5.3 | (33.6 | ) | 173.6 | ||||||||||||||||
Cost of sales | (177.0 | ) | (575.7 | ) | (99.0 | ) | (268.3 | ) | 187.6 | (932.4 | ) | ||||||||||||
Operating expenses | (42.9 | ) | (24.6 | ) | (14.7 | ) | (20.4 | ) | — | (102.6 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 1.6 | 1.6 | |||||||||||||||||
Segment profit | $ | 105.6 | $ | 45.4 | $ | 68.8 | $ | 7.2 | $ | 1.6 | $ | 228.6 | |||||||||||
Depreciation and amortization | $ | (59.6 | ) | $ | (29.4 | ) | $ | (38.6 | ) | $ | (12.6 | ) | $ | (2.3 | ) | $ | (142.5 | ) | |||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 39.7 | $ | 15.6 | $ | 135.0 | $ | 13.7 | $ | 14.5 | $ | 218.5 | |||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 41.9 | $ | 399.5 | $ | 8.9 | $ | 288.0 | $ | — | $ | 738.3 | |||||||||||
Product sales—related parties | 72.7 | 15.2 | 22.5 | 0.9 | (79.6 | ) | 31.7 | ||||||||||||||||
Midstream services | 23.2 | 52.7 | 18.0 | 14.4 | — | 108.3 | |||||||||||||||||
Midstream services—related parties | 111.9 | 25.5 | 41.7 | 4.0 | (22.5 | ) | 160.6 | ||||||||||||||||
Cost of sales | (103.6 | ) | (425.5 | ) | (31.6 | ) | (273.8 | ) | 102.1 | (732.4 | ) | ||||||||||||
Operating expenses | (43.0 | ) | (25.4 | ) | (11.8 | ) | (19.9 | ) | — | (100.1 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (5.7 | ) | (5.7 | ) | |||||||||||||||
Segment profit (loss) | $ | 103.1 | $ | 42.0 | $ | 47.7 | $ | 13.6 | $ | (5.7 | ) | $ | 200.7 | ||||||||||
Depreciation and amortization | $ | (48.7 | ) | $ | (28.6 | ) | $ | (34.8 | ) | $ | (10.6 | ) | $ | (2.2 | ) | $ | (124.9 | ) | |||||
Goodwill | $ | 231.1 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 421.4 | |||||||||||
Capital expenditures | $ | 57.2 | $ | 14.1 | $ | 63.1 | $ | 0.9 | $ | 4.9 | $ | 140.2 |
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
Six Months Ended June 30, 2017 | |||||||||||||||||||||||
Product sales | $ | 159.7 | $ | 1,093.2 | $ | 42.2 | $ | 622.1 | $ | — | $ | 1,917.2 | |||||||||||
Product sales—related parties | 222.0 | 15.6 | 126.8 | 0.8 | (293.2 | ) | 72.0 | ||||||||||||||||
Midstream services | 56.0 | 109.4 | 60.9 | 33.0 | — | 259.3 | |||||||||||||||||
Midstream services—related parties | 212.3 | 64.3 | 108.8 | 8.6 | (61.4 | ) | 332.6 | ||||||||||||||||
Cost of sales | (356.2 | ) | (1,140.4 | ) | (187.7 | ) | (605.0 | ) | 354.6 | (1,934.7 | ) | ||||||||||||
Operating expenses | (86.8 | ) | (50.0 | ) | (28.8 | ) | (41.1 | ) | — | (206.7 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 4.4 | 4.4 | |||||||||||||||||
Segment profit | $ | 207.0 | $ | 92.1 | $ | 122.2 | $ | 18.4 | $ | 4.4 | $ | 444.1 | |||||||||||
Depreciation and amortization | $ | (109.4 | ) | $ | (57.5 | ) | $ | (75.1 | ) | $ | (24.1 | ) | $ | (4.7 | ) | $ | (270.8 | ) | |||||
Impairments | $ | — | $ | — | $ | — | $ | (7.0 | ) | $ | — | $ | (7.0 | ) | |||||||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 68.0 | $ | 48.3 | $ | 275.7 | $ | 51.1 | $ | 23.5 | $ | 466.6 | |||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 104.4 | $ | 687.2 | $ | 16.7 | $ | 518.5 | $ | — | $ | 1,326.8 | |||||||||||
Product sales—related parties | 110.0 | 22.6 | 33.1 | 1.1 | (110.6 | ) | 56.2 | ||||||||||||||||
Midstream services | 50.6 | 107.9 | 33.1 | 31.2 | — | 222.8 | |||||||||||||||||
Midstream services—related parties | 222.2 | 38.2 | 86.7 | 9.2 | (33.1 | ) | 323.2 | ||||||||||||||||
Cost of sales | (194.9 | ) | (727.6 | ) | (50.9 | ) | (488.9 | ) | 143.7 | (1,318.6 | ) | ||||||||||||
Operating expenses | (82.3 | ) | (48.7 | ) | (24.6 | ) | (42.7 | ) | — | (198.3 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (6.1 | ) | (6.1 | ) | |||||||||||||||
Segment profit (loss) | $ | 210.0 | $ | 79.6 | $ | 94.1 | $ | 28.4 | $ | (6.1 | ) | $ | 406.0 | ||||||||||
Depreciation and amortization | $ | (94.9 | ) | $ | (57.9 | ) | $ | (68.6 | ) | $ | (21.0 | ) | $ | (4.4 | ) | $ | (246.8 | ) | |||||
Impairments | $ | (473.1 | ) | $ | — | $ | — | $ | (93.2 | ) | $ | — | $ | (566.3 | ) | ||||||||
Goodwill | $ | 231.1 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 421.4 | |||||||||||
Capital expenditures | $ | 80.5 | $ | 36.8 | $ | 132.3 | $ | 4.2 | $ | 6.8 | $ | 260.6 |
Segment Identifiable Assets: | June 30, 2017 | December 31, 2016 | |||||
Texas | $ | 3,113.5 | $ | 3,142.6 | |||
Louisiana | 2,322.7 | 2,349.3 | |||||
Oklahoma | 2,731.4 | 2,524.5 | |||||
Crude and Condensate | 833.3 | 836.8 | |||||
Corporate | 135.2 | 300.2 | |||||
Total identifiable assets | $ | 9,136.1 | $ | 9,153.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment profits | $ | 228.6 | $ | 200.7 | $ | 444.1 | $ | 406.0 | |||||||
General and administrative expenses | (29.6 | ) | (29.1 | ) | (64.6 | ) | (62.3 | ) | |||||||
Gain (loss) on disposition of assets | 5.4 | (0.3 | ) | 0.3 | (0.1 | ) | |||||||||
Depreciation and amortization | (142.5 | ) | (124.9 | ) | (270.8 | ) | (246.8 | ) | |||||||
Impairments | — | — | (7.0 | ) | (566.3 | ) | |||||||||
Gain on litigation settlement | 8.5 | — | 26.0 | — | |||||||||||
Operating income (loss) | $ | 70.4 | $ | 46.4 | $ | 128.0 | $ | (469.5 | ) |
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Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Non-cash financing activities: | |||||||
Installment payable, net of discount of $79.1 million (1) | $ | — | $ | 420.9 | |||
Contribution from ENLC (2) | — | 237.1 |
(1) | We incurred installment purchase obligations, net of discount, payable to the seller in connection with the EnLink Oklahoma T.O. assets. We paid the first installment on January 6, 2017 and will pay the final installment no later than January 7, 2018. See “Note 3—Acquisition” for further discussion. |
(2) | Contribution from ENLC in connection with the acquisition of EnLink Oklahoma T.O. assets. See “Note 3—Acquisition” for further discussion. |
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June 30, 2017 | December 31, 2016 | ||||||
Natural gas and NGLs inventory | $ | 42.1 | $ | 17.4 | |||
Prepaid expenses and other | 17.5 | 13.6 | |||||
Natural gas and NGLs inventory, prepaid expenses and other | $ | 59.6 | $ | 31.0 |
June 30, 2017 | December 31, 2016 | ||||||
Accrued interest | $ | 37.2 | $ | 34.2 | |||
Accrued wages and benefits, including taxes | 16.9 | 19.0 | |||||
Accrued ad valorem taxes | 23.2 | 23.5 | |||||
Capital expenditure accruals | 59.2 | 64.6 | |||||
Onerous performance obligations | 15.6 | 15.9 | |||||
Other | 61.9 | 59.8 | |||||
Other current liabilities | $ | 214.0 | $ | 217.0 |
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