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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 | |||||||||
Nine Months Ended September 30, 2017 | |||||||||||
Customer relationships, beginning of period | $ | 1,795.8 | $ | (171.6 | ) | $ | 1,624.2 | ||||
Amortization expense | — | (96.2 | ) | (96.2 | ) | ||||||
Customer relationships, end of period | $ | 1,795.8 | $ | (267.8 | ) | $ | 1,528.0 |
2017 (remaining) | $ | 30.8 | |
2018 | 123.4 | ||
2019 | 123.4 | ||
2020 | 123.4 | ||
2021 | 123.4 | ||
Thereafter | 1,003.6 | ||
Total | $ | 1,528.0 |
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September 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) | $ | — | $ | — | $ | — | $ | 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 | (6.5 | ) | 443.5 | 450.0 | (6.6 | ) | 443.4 | |||||||||||||||
5.45% Senior unsecured notes due 2047 | 500.0 | (0.1 | ) | 499.9 | — | — | — | ||||||||||||||||
Debt classified as long-term | $ | 3,500.0 | $ | (6.3 | ) | $ | 3,493.7 | $ | 3,282.5 | $ | 9.6 | $ | 3,292.1 | ||||||||||
Debt issuance cost (2) | (26.9 | ) | (24.1 | ) | |||||||||||||||||||
Long-term debt, net of unamortized issuance cost | $ | 3,466.8 | $ | 3,268.0 |
(1) | Bears interest based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was 2.3% at December 31, 2016. |
(2) | Net of amortization of $11.0 million and $8.3 million at September 30, 2017 and December 31, 2016, respectively. |
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(a) | Issuance of Common Units |
Declaration period | Distribution paid-in kind (1) | Cash Distribution (in millions) | 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 | |||||
Third Quarter of 2017 | 410,681 | $ | 15.9 | November 13, 2017 | |||||
2016 | |||||||||
First Quarter of 2016 | 992,445 | $ | — | May 12, 2016 | |||||
Second Quarter of 2016 | 1,083,589 | $ | — | August 11, 2016 | |||||
Third Quarter of 2016 | 1,106,616 | $ | — | November 10, 2016 |
(1) | Represents distributions paid or payable on the Series B Preferred Units through issuance of additional Series B Preferred Units. |
(c) | Issuance of Series C Preferred Units |
(d) | Common Unit Distributions |
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 | |||
Third Quarter of 2017 | $ | 0.39 | November 13, 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 | |||
Third Quarter of 2016 | $ | 0.39 | November 11, 2016 |
(e) | Earnings Per Unit and Dilution Computations |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Limited partners’ interest in net loss | $ | (8.6 | ) | $ | (11.4 | ) | $ | (18.4 | ) | $ | (602.1 | ) | |||
Distributed earnings allocated to: | |||||||||||||||
Common units (1) (2) | $ | 135.7 | $ | 131.5 | $ | 405.0 | $ | 387.0 | |||||||
Unvested restricted units (1) (2) | 1.1 | 0.9 | 3.0 | 2.6 | |||||||||||
Total distributed earnings | $ | 136.8 | $ | 132.4 | $ | 408.0 | $ | 389.6 | |||||||
Undistributed loss allocated to: | |||||||||||||||
Common units | $ | (144.3 | ) | $ | (142.8 | ) | $ | (423.3 | ) | $ | (985.1 | ) | |||
Unvested restricted units | (1.1 | ) | (1.0 | ) | (3.1 | ) | (6.6 | ) | |||||||
Total undistributed loss | $ | (145.4 | ) | $ | (143.8 | ) | $ | (426.4 | ) | $ | (991.7 | ) | |||
Net loss allocated to: | |||||||||||||||
Common units | $ | (8.6 | ) | $ | (11.3 | ) | $ | (18.3 | ) | $ | (598.1 | ) | |||
Unvested restricted units | — | (0.1 | ) | (0.1 | ) | (4.0 | ) | ||||||||
Total limited partners’ interest in net loss | $ | (8.6 | ) | $ | (11.4 | ) | $ | (18.4 | ) | $ | (602.1 | ) | |||
Basic and diluted net loss per unit: | |||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.05 | ) | $ | (1.82 | ) | |||
Diluted | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.05 | ) | $ | (1.82 | ) |
(1) | For the three months ended September 30, 2017 and 2016, distributed earnings included a declared distribution of $0.39 per unit payable on November 13, 2017 and a distribution of $0.39 per unit paid on November 11, 2016, respectively. |
(2) | For the nine months ended September 30, 2017, distributed earnings included a declared distribution of 0.39 per unit payable on November 13, 2017 and distributions of $0.39 per unit paid on August 11, 2017 and $0.39 per unit paid on May 12, 2017. For the nine months ended September 30, 2016, distributed earnings included distributions of $0.39 per unit paid on November 11, 2016, $0.39 per unit paid on August 11, 2016 and $0.39 per unit paid on May 12, 2016. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Basic weighted average units outstanding: | |||||||||||
Weighted average limited partner basic common units outstanding (1) | 347.9 | 337.2 | 346.1 | 330.8 | |||||||
Diluted weighted average units outstanding: | |||||||||||
Weighted average limited partner basic common units outstanding (1) | 347.9 | 337.2 | 346.1 | 330.8 | |||||||
Dilutive effect of non-vested restricted units (2) | — | — | — | — | |||||||
Dilutive effect of convertible Series B Preferred Units (2) | — | — | — | — | |||||||
Total weighted average limited partner diluted common units outstanding | 347.9 | 337.2 | 346.1 | 330.8 |
(1) | For the three and nine months ended September 30, 2016, weighted average limited partner basic common units outstanding included the weighted average impact of 3,645,688 Class C Common Units that converted into common units on May 13, 2016. |
(2) | All common unit equivalents were antidilutive for the three and nine months ended September 30, 2017 and 2016 because the limited partners were allocated a net loss. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Income allocation for incentive distributions | $ | 14.8 | $ | 14.4 | $ | 44.1 | $ | 42.4 | |||||||
Unit-based compensation attributable to ENLC’s restricted units | (4.2 | ) | (3.6 | ) | (16.9 | ) | (11.2 | ) | |||||||
General partner share of net income (loss) | — | — | 0.1 | (2.4 | ) | ||||||||||
General partner interest in net income | $ | 10.6 | $ | 10.8 | $ | 27.3 | $ | 28.8 |
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Nine Months Ended September 30, 2017 | |||
Balance, beginning of period | $ | 13.5 | |
Accretion expense | 0.5 | ||
Balance, end of period | $ | 14.0 |
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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 September 30, 2017 and December 31, 2016; |
• | an approximate 30% ownership in Cedar Cove Midstream LLC (the “Cedar Cove JV”) at September 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% common unit ownership interest in Howard Energy Partners (“HEP”) at December 31, 2016, which was sold in March 2017 for aggregate net proceeds of $189.7 million. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Gulf Coast Fractionators | |||||||||||||||
Contributions | $ | — | $ | — | $ | — | $ | — | |||||||
Distributions | $ | 3.5 | $ | 0.9 | $ | 10.6 | $ | 4.4 | |||||||
Equity in income | $ | 4.5 | $ | 2.2 | $ | 8.5 | $ | 1.1 | |||||||
Howard Energy Partners | |||||||||||||||
Contributions (1) | $ | — | $ | 3.2 | $ | — | $ | 45.0 | |||||||
Distributions (2) | $ | — | $ | 36.5 | $ | — | $ | 47.9 | |||||||
Equity in loss (3) | $ | — | $ | (1.1 | ) | $ | (3.4 | ) | $ | (1.6 | ) | ||||
Cedar Cove JV | |||||||||||||||
Contributions | $ | 1.5 | $ | — | $ | 11.8 | $ | — | |||||||
Distributions | $ | 0.5 | $ | — | $ | 0.8 | $ | — | |||||||
Equity in loss | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | $ | — | |||||
Total | |||||||||||||||
Contributions (1) | $ | 1.5 | $ | 3.2 | $ | 11.8 | $ | 45.0 | |||||||
Distributions (2) | $ | 4.0 | $ | 37.4 | $ | 11.4 | $ | 52.3 | |||||||
Equity in income (loss) (3) | $ | 4.4 | $ | 1.1 | $ | 5.0 | $ | (0.5 | ) |
(1) | Contributions for the three and nine months ended September 30, 2016 included $3.2 million and $32.7 million, respectively, of contributions to HEP for preferred units issued by HEP, which were redeemed during the third quarter of 2016. |
(2) | Distributions for the three and nine months ended September 30, 2016 included a redemption of $32.7 million of preferred units issued by HEP. |
(3) | Includes a loss of $3.4 million for the nine months ended September 30, 2017 from the sale of our HEP interests. |
September 30, 2017 | December 31, 2016 | ||||||
Gulf Coast Fractionators | $ | 46.4 | $ | 48.5 | |||
Howard Energy Partners | — | 193.1 | |||||
Cedar Cove JV | 39.7 | 28.8 | |||||
Total investment in unconsolidated affiliates | $ | 86.1 | $ | 270.4 |
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(a) | Long-Term Incentive Plans |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of unit-based compensation charged to general and administrative expense | $ | 7.3 | $ | 5.7 | $ | 28.3 | $ | 17.5 | |||||||
Cost of unit-based compensation charged to operating expense | 2.8 | 1.6 | 10.4 | 5.0 | |||||||||||
Total unit-based compensation expense | $ | 10.1 | $ | 7.3 | $ | 38.7 | $ | 22.5 |
(b) | EnLink Midstream Partners, LP Restricted Incentive Units |
Nine Months Ended September 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) | 859,595 | 18.41 | ||||||
Vested (1)(2) | (851,753 | ) | 25.90 | |||||
Forfeited | (32,225 | ) | 16.28 | |||||
Non-vested, end of period | 2,000,437 | $ | 15.91 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 33.5 |
(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 273,848 units withheld for payroll taxes paid on behalf of employees. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.6 | $ | 0.3 | $ | 16.3 | $ | 4.1 | ||||||||
Fair value of units vested | $ | 1.1 | $ | 0.5 | $ | 22.1 | $ | 9.5 |
(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 | % |
Nine Months Ended September 30, 2017 | ||||||||
EnLink Midstream Partners, LP Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 408,637 | $ | 18.27 | |||||
Granted | 176,648 | 25.73 | ||||||
Forfeited | — | — | ||||||
Non-vested, end of period | 585,285 | $ | 20.52 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 9.8 |
(d) | EnLink Midstream, LLC Restricted Incentive Units |
Nine Months Ended September 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) | 817,201 | 19.24 | ||||||
Vested (1)(2) | (775,973 | ) | 28.28 | |||||
Forfeited | (31,636 | ) | 16.53 | |||||
Non-vested, end of period | 1,906,890 | $ | 16.32 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 32.9 |
(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 238,312 units withheld for payroll taxes paid on behalf of employees. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
EnLink Midstream, LLC Restricted Incentive Units: | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.6 | $ | 0.3 | $ | 15.2 | $ | 4.1 | ||||||||
Fair value of units vested | $ | 1.1 | $ | 0.6 | $ | 21.9 | $ | 12.4 |
(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 | % |
Nine Months Ended September 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) | $ | 9.5 |
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Change in fair value of derivatives | $ | (3.3 | ) | $ | (1.6 | ) | $ | 3.8 | $ | (16.0 | ) | ||||
Realized gain (loss) on derivatives | (2.2 | ) | 1.1 | (4.9 | ) | 9.4 | |||||||||
Loss on derivative activity | $ | (5.5 | ) | $ | (0.5 | ) | $ | (1.1 | ) | $ | (6.6 | ) |
September 30, 2017 | December 31, 2016 | ||||||
Fair value of derivative assets — current | $ | 4.6 | $ | 1.3 | |||
Fair value of derivative assets — long-term | 0.1 | — | |||||
Fair value of derivative liabilities — current | (7.2 | ) | (7.6 | ) | |||
Net fair value of derivatives | $ | (2.5 | ) | $ | (6.3 | ) |
September 30, 2017 | |||||||||||
Commodity | Instruments | Unit | Volume | Fair Value | |||||||
NGL (short contracts) | Swaps | Gallons | (35.8 | ) | $ | (4.9 | ) | ||||
NGL (long contracts) | Swaps | Gallons | 25.1 | 1.9 | |||||||
Natural Gas (short contracts) | Swaps | MMBtu | (20.5 | ) | 1.3 | ||||||
Natural Gas (long contracts) | Swaps | MMBtu | 23.2 | (0.7 | ) | ||||||
Condensate (short contracts) | Swaps | MMbbls | 0.1 | (0.1 | ) | ||||||
Total fair value of derivatives | $ | (2.5 | ) |
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Level 2 | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Commodity Swaps (1) | $ | (2.5 | ) | $ | (6.3 | ) | |
Total | $ | (2.5 | ) | $ | (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. |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt (1) | $ | 3,466.8 | $ | 3,564.7 | $ | 3,268.0 | $ | 3,225.8 | |||||||
Installment Payables | $ | 243.0 | $ | 243.7 | $ | 473.2 | $ | 476.6 | |||||||
Obligations under capital lease | $ | 4.4 | $ | 3.7 | $ | 6.6 | $ | 6.1 |
(1) | The carrying value of long-term debt is reduced by debt issuance costs of $26.9 million and $24.1 million at September 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 September 30, 2017 | |||||||||||||||||||||||
Product sales | $ | 80.8 | $ | 642.3 | $ | 42.5 | $ | 291.1 | $ | — | $ | 1,056.7 | |||||||||||
Product sales—related parties | 130.6 | 10.0 | 94.6 | — | (199.9 | ) | 35.3 | ||||||||||||||||
Midstream services | 29.1 | 50.3 | 44.3 | 12.7 | — | 136.4 | |||||||||||||||||
Midstream services—related parties | 106.7 | 35.9 | 63.0 | 4.8 | (35.4 | ) | 175.0 | ||||||||||||||||
Cost of sales | (198.5 | ) | (662.7 | ) | (148.2 | ) | (279.1 | ) | 235.3 | (1,053.2 | ) | ||||||||||||
Operating expenses | (41.1 | ) | (24.8 | ) | (17.1 | ) | (19.1 | ) | — | (102.1 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (5.5 | ) | (5.5 | ) | |||||||||||||||
Segment profit (loss) | $ | 107.6 | $ | 51.0 | $ | 79.1 | $ | 10.4 | $ | (5.5 | ) | $ | 242.6 | ||||||||||
Depreciation and amortization | $ | (52.5 | ) | $ | (29.3 | ) | $ | (40.2 | ) | $ | (11.7 | ) | $ | (2.6 | ) | $ | (136.3 | ) | |||||
Impairments | $ | — | $ | — | $ | — | $ | (1.8 | ) | $ | — | $ | (1.8 | ) | |||||||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 39.1 | $ | 7.5 | $ | 107.7 | $ | 13.3 | $ | 2.1 | $ | 169.7 | |||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 61.3 | $ | 430.9 | $ | 16.2 | $ | 262.6 | $ | — | $ | 771.0 | |||||||||||
Product sales—related parties | 81.9 | 24.4 | 36.0 | — | (99.2 | ) | 43.1 | ||||||||||||||||
Midstream services | 27.5 | 57.2 | 24.2 | 16.8 | — | 125.7 | |||||||||||||||||
Midstream services—related parties | 109.5 | 29.9 | 47.7 | 5.2 | (27.0 | ) | 165.3 | ||||||||||||||||
Cost of sales | (134.1 | ) | (471.5 | ) | (58.3 | ) | (250.5 | ) | 126.2 | (788.2 | ) | ||||||||||||
Operating expenses | (42.9 | ) | (23.5 | ) | (12.6 | ) | (19.0 | ) | — | (98.0 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (0.5 | ) | (0.5 | ) | |||||||||||||||
Segment profit (loss) | $ | 103.2 | $ | 47.4 | $ | 53.2 | $ | 15.1 | $ | (0.5 | ) | $ | 218.4 | ||||||||||
Depreciation and amortization | $ | (48.7 | ) | $ | (28.8 | ) | $ | (35.6 | ) | $ | (10.7 | ) | $ | (2.4 | ) | $ | (126.2 | ) | |||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 51.8 | $ | 15.4 | $ | 58.3 | $ | 12.8 | $ | 8.6 | $ | 146.9 |
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||
Product sales | $ | 240.5 | $ | 1,735.5 | $ | 84.7 | $ | 913.2 | $ | — | $ | 2,973.9 | |||||||||||
Product sales—related parties | 352.6 | 25.6 | 221.4 | 0.8 | (493.1 | ) | 107.3 | ||||||||||||||||
Midstream services | 85.1 | 159.7 | 105.2 | 45.7 | — | 395.7 | |||||||||||||||||
Midstream services—related parties | 319.0 | 100.2 | 171.8 | 13.4 | (96.8 | ) | 507.6 | ||||||||||||||||
Cost of sales | (554.7 | ) | (1,803.1 | ) | (335.9 | ) | (884.1 | ) | 589.9 | (2,987.9 | ) | ||||||||||||
Operating expenses | (127.9 | ) | (74.8 | ) | (45.9 | ) | (60.2 | ) | — | (308.8 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (1.1 | ) | (1.1 | ) | |||||||||||||||
Segment profit (loss) | $ | 314.6 | $ | 143.1 | $ | 201.3 | $ | 28.8 | $ | (1.1 | ) | $ | 686.7 | ||||||||||
Depreciation and amortization | $ | (161.9 | ) | $ | (86.8 | ) | $ | (115.3 | ) | $ | (35.8 | ) | $ | (7.3 | ) | $ | (407.1 | ) | |||||
Impairments | $ | — | $ | — | $ | — | $ | (8.8 | ) | $ | — | $ | (8.8 | ) | |||||||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 107.1 | $ | 55.8 | $ | 383.4 | $ | 64.4 | $ | 25.6 | $ | 636.3 | |||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 165.7 | $ | 1,118.1 | $ | 32.9 | $ | 781.1 | $ | — | $ | 2,097.8 | |||||||||||
Product sales—related parties | 191.9 | 47.0 | 69.1 | 1.1 | (209.8 | ) | 99.3 | ||||||||||||||||
Midstream services | 78.1 | 165.1 | 57.3 | 48.0 | — | 348.5 | |||||||||||||||||
Midstream services—related parties | 331.7 | 68.1 | 134.4 | 14.4 | (60.1 | ) | 488.5 | ||||||||||||||||
Cost of sales | (329.0 | ) | (1,199.1 | ) | (109.2 | ) | (739.4 | ) | 269.9 | (2,106.8 | ) | ||||||||||||
Operating expenses | (125.2 | ) | (72.2 | ) | (37.2 | ) | (61.7 | ) | — | (296.3 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (6.6 | ) | (6.6 | ) | |||||||||||||||
Segment profit (loss) | $ | 313.2 | $ | 127.0 | $ | 147.3 | $ | 43.5 | $ | (6.6 | ) | $ | 624.4 | ||||||||||
Depreciation and amortization | $ | (143.6 | ) | $ | (86.7 | ) | $ | (104.2 | ) | $ | (31.7 | ) | $ | (6.8 | ) | $ | (373.0 | ) | |||||
Impairments | $ | (473.1 | ) | $ | — | $ | — | $ | (93.2 | ) | $ | — | $ | (566.3 | ) | ||||||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 132.3 | $ | 52.2 | $ | 190.6 | $ | 17.0 | $ | 15.4 | $ | 407.5 |
Segment Identifiable Assets: | September 30, 2017 | December 31, 2016 | |||||
Texas | $ | 3,113.0 | $ | 3,142.6 | |||
Louisiana | 2,395.5 | 2,349.3 | |||||
Oklahoma | 2,814.7 | 2,524.5 | |||||
Crude and Condensate | 847.2 | 836.8 | |||||
Corporate | 255.7 | 300.2 | |||||
Total identifiable assets | $ | 9,426.1 | $ | 9,153.4 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment profits | $ | 242.6 | $ | 218.4 | $ | 686.7 | $ | 624.4 | |||||||
General and administrative expenses | (30.0 | ) | (28.3 | ) | (94.6 | ) | (90.6 | ) | |||||||
Gain (loss) on disposition of assets | (1.1 | ) | 3.0 | (0.8 | ) | 2.9 | |||||||||
Depreciation and amortization | (136.3 | ) | (126.2 | ) | (407.1 | ) | (373.0 | ) | |||||||
Impairments | (1.8 | ) | — | (8.8 | ) | (566.3 | ) | ||||||||
Gain on litigation settlement | — | — | 26.0 | — | |||||||||||
Operating income (loss) | $ | 73.4 | $ | 66.9 | $ | 201.4 | $ | (402.6 | ) |
|
Nine Months Ended September 30, | ||||||||
Non-cash financing activities: | 2017 | 2016 | ||||||
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. |
|
September 30, 2017 | December 31, 2016 | ||||||
Natural gas and NGLs inventory | $ | 59.1 | $ | 17.4 | |||
Prepaid expenses and other | 13.9 | 13.6 | |||||
Natural gas and NGLs inventory, prepaid expenses and other | $ | 73.0 | $ | 31.0 |
September 30, 2017 | December 31, 2016 | ||||||
Accrued interest | $ | 64.7 | $ | 34.2 | |||
Accrued wages and benefits, including taxes | 23.2 | 19.0 | |||||
Accrued ad valorem taxes | 33.5 | 23.5 | |||||
Capital expenditure accruals | 43.6 | 64.6 | |||||
Onerous performance obligations | 15.4 | 15.9 | |||||
Other | 54.1 | 59.8 | |||||
Other current liabilities | $ | 234.5 | $ | 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 | |||||||||
Nine Months Ended September 30, 2017 | |||||||||||
Customer relationships, beginning of period | $ | 1,795.8 | $ | (171.6 | ) | $ | 1,624.2 | ||||
Amortization expense | — | (96.2 | ) | (96.2 | ) | ||||||
Customer relationships, end of period | $ | 1,795.8 | $ | (267.8 | ) | $ | 1,528.0 |
2017 (remaining) | $ | 30.8 | |
2018 | 123.4 | ||
2019 | 123.4 | ||
2020 | 123.4 | ||
2021 | 123.4 | ||
Thereafter | 1,003.6 | ||
Total | $ | 1,528.0 |
|
September 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) | $ | — | $ | — | $ | — | $ | 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 | (6.5 | ) | 443.5 | 450.0 | (6.6 | ) | 443.4 | |||||||||||||||
5.45% Senior unsecured notes due 2047 | 500.0 | (0.1 | ) | 499.9 | — | — | — | ||||||||||||||||
Debt classified as long-term | $ | 3,500.0 | $ | (6.3 | ) | $ | 3,493.7 | $ | 3,282.5 | $ | 9.6 | $ | 3,292.1 | ||||||||||
Debt issuance cost (2) | (26.9 | ) | (24.1 | ) | |||||||||||||||||||
Long-term debt, net of unamortized issuance cost | $ | 3,466.8 | $ | 3,268.0 |
(1) | Bears interest based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was 2.3% at December 31, 2016. |
(2) | Net of amortization of $11.0 million and $8.3 million at September 30, 2017 and December 31, 2016, respectively. |
|
Declaration period | Distribution paid-in kind (1) | Cash Distribution (in millions) | 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 | |||||
Third Quarter of 2017 | 410,681 | $ | 15.9 | November 13, 2017 | |||||
2016 | |||||||||
First Quarter of 2016 | 992,445 | $ | — | May 12, 2016 | |||||
Second Quarter of 2016 | 1,083,589 | $ | — | August 11, 2016 | |||||
Third Quarter of 2016 | 1,106,616 | $ | — | November 10, 2016 |
(1) | Represents distributions paid or payable on the Series B Preferred Units through issuance of additional Series B 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 | |||
Third Quarter of 2017 | $ | 0.39 | November 13, 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 | |||
Third Quarter of 2016 | $ | 0.39 | November 11, 2016 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Limited partners’ interest in net loss | $ | (8.6 | ) | $ | (11.4 | ) | $ | (18.4 | ) | $ | (602.1 | ) | |||
Distributed earnings allocated to: | |||||||||||||||
Common units (1) (2) | $ | 135.7 | $ | 131.5 | $ | 405.0 | $ | 387.0 | |||||||
Unvested restricted units (1) (2) | 1.1 | 0.9 | 3.0 | 2.6 | |||||||||||
Total distributed earnings | $ | 136.8 | $ | 132.4 | $ | 408.0 | $ | 389.6 | |||||||
Undistributed loss allocated to: | |||||||||||||||
Common units | $ | (144.3 | ) | $ | (142.8 | ) | $ | (423.3 | ) | $ | (985.1 | ) | |||
Unvested restricted units | (1.1 | ) | (1.0 | ) | (3.1 | ) | (6.6 | ) | |||||||
Total undistributed loss | $ | (145.4 | ) | $ | (143.8 | ) | $ | (426.4 | ) | $ | (991.7 | ) | |||
Net loss allocated to: | |||||||||||||||
Common units | $ | (8.6 | ) | $ | (11.3 | ) | $ | (18.3 | ) | $ | (598.1 | ) | |||
Unvested restricted units | — | (0.1 | ) | (0.1 | ) | (4.0 | ) | ||||||||
Total limited partners’ interest in net loss | $ | (8.6 | ) | $ | (11.4 | ) | $ | (18.4 | ) | $ | (602.1 | ) | |||
Basic and diluted net loss per unit: | |||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.05 | ) | $ | (1.82 | ) | |||
Diluted | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.05 | ) | $ | (1.82 | ) |
(1) | For the three months ended September 30, 2017 and 2016, distributed earnings included a declared distribution of $0.39 per unit payable on November 13, 2017 and a distribution of $0.39 per unit paid on November 11, 2016, respectively. |
(2) | For the nine months ended September 30, 2017, distributed earnings included a declared distribution of 0.39 per unit payable on November 13, 2017 and distributions of $0.39 per unit paid on August 11, 2017 and $0.39 per unit paid on May 12, 2017. For the nine months ended September 30, 2016, distributed earnings included distributions of $0.39 per unit paid on November 11, 2016, $0.39 per unit paid on August 11, 2016 and $0.39 per unit paid on May 12, 2016. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Basic weighted average units outstanding: | |||||||||||
Weighted average limited partner basic common units outstanding (1) | 347.9 | 337.2 | 346.1 | 330.8 | |||||||
Diluted weighted average units outstanding: | |||||||||||
Weighted average limited partner basic common units outstanding (1) | 347.9 | 337.2 | 346.1 | 330.8 | |||||||
Dilutive effect of non-vested restricted units (2) | — | — | — | — | |||||||
Dilutive effect of convertible Series B Preferred Units (2) | — | — | — | — | |||||||
Total weighted average limited partner diluted common units outstanding | 347.9 | 337.2 | 346.1 | 330.8 |
(1) | For the three and nine months ended September 30, 2016, weighted average limited partner basic common units outstanding included the weighted average impact of 3,645,688 Class C Common Units that converted into common units on May 13, 2016. |
(2) | All common unit equivalents were antidilutive for the three and nine months ended September 30, 2017 and 2016 because the limited partners were allocated a net loss. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Income allocation for incentive distributions | $ | 14.8 | $ | 14.4 | $ | 44.1 | $ | 42.4 | |||||||
Unit-based compensation attributable to ENLC’s restricted units | (4.2 | ) | (3.6 | ) | (16.9 | ) | (11.2 | ) | |||||||
General partner share of net income (loss) | — | — | 0.1 | (2.4 | ) | ||||||||||
General partner interest in net income | $ | 10.6 | $ | 10.8 | $ | 27.3 | $ | 28.8 |
|
Nine Months Ended September 30, 2017 | |||
Balance, beginning of period | $ | 13.5 | |
Accretion expense | 0.5 | ||
Balance, end of period | $ | 14.0 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Gulf Coast Fractionators | |||||||||||||||
Contributions | $ | — | $ | — | $ | — | $ | — | |||||||
Distributions | $ | 3.5 | $ | 0.9 | $ | 10.6 | $ | 4.4 | |||||||
Equity in income | $ | 4.5 | $ | 2.2 | $ | 8.5 | $ | 1.1 | |||||||
Howard Energy Partners | |||||||||||||||
Contributions (1) | $ | — | $ | 3.2 | $ | — | $ | 45.0 | |||||||
Distributions (2) | $ | — | $ | 36.5 | $ | — | $ | 47.9 | |||||||
Equity in loss (3) | $ | — | $ | (1.1 | ) | $ | (3.4 | ) | $ | (1.6 | ) | ||||
Cedar Cove JV | |||||||||||||||
Contributions | $ | 1.5 | $ | — | $ | 11.8 | $ | — | |||||||
Distributions | $ | 0.5 | $ | — | $ | 0.8 | $ | — | |||||||
Equity in loss | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | $ | — | |||||
Total | |||||||||||||||
Contributions (1) | $ | 1.5 | $ | 3.2 | $ | 11.8 | $ | 45.0 | |||||||
Distributions (2) | $ | 4.0 | $ | 37.4 | $ | 11.4 | $ | 52.3 | |||||||
Equity in income (loss) (3) | $ | 4.4 | $ | 1.1 | $ | 5.0 | $ | (0.5 | ) |
(1) | Contributions for the three and nine months ended September 30, 2016 included $3.2 million and $32.7 million, respectively, of contributions to HEP for preferred units issued by HEP, which were redeemed during the third quarter of 2016. |
(2) | Distributions for the three and nine months ended September 30, 2016 included a redemption of $32.7 million of preferred units issued by HEP. |
(3) | Includes a loss of $3.4 million for the nine months ended September 30, 2017 from the sale of our HEP interests. |
September 30, 2017 | December 31, 2016 | ||||||
Gulf Coast Fractionators | $ | 46.4 | $ | 48.5 | |||
Howard Energy Partners | — | 193.1 | |||||
Cedar Cove JV | 39.7 | 28.8 | |||||
Total investment in unconsolidated affiliates | $ | 86.1 | $ | 270.4 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of unit-based compensation charged to general and administrative expense | $ | 7.3 | $ | 5.7 | $ | 28.3 | $ | 17.5 | |||||||
Cost of unit-based compensation charged to operating expense | 2.8 | 1.6 | 10.4 | 5.0 | |||||||||||
Total unit-based compensation expense | $ | 10.1 | $ | 7.3 | $ | 38.7 | $ | 22.5 |
Nine Months Ended September 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) | 817,201 | 19.24 | ||||||
Vested (1)(2) | (775,973 | ) | 28.28 | |||||
Forfeited | (31,636 | ) | 16.53 | |||||
Non-vested, end of period | 1,906,890 | $ | 16.32 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 32.9 |
(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 238,312 units withheld for payroll taxes paid on behalf of employees. |
Nine Months Ended September 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) | 859,595 | 18.41 | ||||||
Vested (1)(2) | (851,753 | ) | 25.90 | |||||
Forfeited | (32,225 | ) | 16.28 | |||||
Non-vested, end of period | 2,000,437 | $ | 15.91 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 33.5 |
(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 273,848 units withheld for payroll taxes paid on behalf of employees. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.6 | $ | 0.3 | $ | 16.3 | $ | 4.1 | ||||||||
Fair value of units vested | $ | 1.1 | $ | 0.5 | $ | 22.1 | $ | 9.5 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
EnLink Midstream, LLC Restricted Incentive Units: | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.6 | $ | 0.3 | $ | 15.2 | $ | 4.1 | ||||||||
Fair value of units vested | $ | 1.1 | $ | 0.6 | $ | 21.9 | $ | 12.4 |
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 | % |
Nine Months Ended September 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) | $ | 9.5 |
Nine Months Ended September 30, 2017 | ||||||||
EnLink Midstream Partners, LP Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 408,637 | $ | 18.27 | |||||
Granted | 176,648 | 25.73 | ||||||
Forfeited | — | — | ||||||
Non-vested, end of period | 585,285 | $ | 20.52 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 9.8 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Change in fair value of derivatives | $ | (3.3 | ) | $ | (1.6 | ) | $ | 3.8 | $ | (16.0 | ) | ||||
Realized gain (loss) on derivatives | (2.2 | ) | 1.1 | (4.9 | ) | 9.4 | |||||||||
Loss on derivative activity | $ | (5.5 | ) | $ | (0.5 | ) | $ | (1.1 | ) | $ | (6.6 | ) |
September 30, 2017 | December 31, 2016 | ||||||
Fair value of derivative assets — current | $ | 4.6 | $ | 1.3 | |||
Fair value of derivative assets — long-term | 0.1 | — | |||||
Fair value of derivative liabilities — current | (7.2 | ) | (7.6 | ) | |||
Net fair value of derivatives | $ | (2.5 | ) | $ | (6.3 | ) |
September 30, 2017 | |||||||||||
Commodity | Instruments | Unit | Volume | Fair Value | |||||||
NGL (short contracts) | Swaps | Gallons | (35.8 | ) | $ | (4.9 | ) | ||||
NGL (long contracts) | Swaps | Gallons | 25.1 | 1.9 | |||||||
Natural Gas (short contracts) | Swaps | MMBtu | (20.5 | ) | 1.3 | ||||||
Natural Gas (long contracts) | Swaps | MMBtu | 23.2 | (0.7 | ) | ||||||
Condensate (short contracts) | Swaps | MMbbls | 0.1 | (0.1 | ) | ||||||
Total fair value of derivatives | $ | (2.5 | ) |
|
Level 2 | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Commodity Swaps (1) | $ | (2.5 | ) | $ | (6.3 | ) | |
Total | $ | (2.5 | ) | $ | (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. |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt (1) | $ | 3,466.8 | $ | 3,564.7 | $ | 3,268.0 | $ | 3,225.8 | |||||||
Installment Payables | $ | 243.0 | $ | 243.7 | $ | 473.2 | $ | 476.6 | |||||||
Obligations under capital lease | $ | 4.4 | $ | 3.7 | $ | 6.6 | $ | 6.1 |
(1) | The carrying value of long-term debt is reduced by debt issuance costs of $26.9 million and $24.1 million at September 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 September 30, 2017 | |||||||||||||||||||||||
Product sales | $ | 80.8 | $ | 642.3 | $ | 42.5 | $ | 291.1 | $ | — | $ | 1,056.7 | |||||||||||
Product sales—related parties | 130.6 | 10.0 | 94.6 | — | (199.9 | ) | 35.3 | ||||||||||||||||
Midstream services | 29.1 | 50.3 | 44.3 | 12.7 | — | 136.4 | |||||||||||||||||
Midstream services—related parties | 106.7 | 35.9 | 63.0 | 4.8 | (35.4 | ) | 175.0 | ||||||||||||||||
Cost of sales | (198.5 | ) | (662.7 | ) | (148.2 | ) | (279.1 | ) | 235.3 | (1,053.2 | ) | ||||||||||||
Operating expenses | (41.1 | ) | (24.8 | ) | (17.1 | ) | (19.1 | ) | — | (102.1 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (5.5 | ) | (5.5 | ) | |||||||||||||||
Segment profit (loss) | $ | 107.6 | $ | 51.0 | $ | 79.1 | $ | 10.4 | $ | (5.5 | ) | $ | 242.6 | ||||||||||
Depreciation and amortization | $ | (52.5 | ) | $ | (29.3 | ) | $ | (40.2 | ) | $ | (11.7 | ) | $ | (2.6 | ) | $ | (136.3 | ) | |||||
Impairments | $ | — | $ | — | $ | — | $ | (1.8 | ) | $ | — | $ | (1.8 | ) | |||||||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 39.1 | $ | 7.5 | $ | 107.7 | $ | 13.3 | $ | 2.1 | $ | 169.7 | |||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 61.3 | $ | 430.9 | $ | 16.2 | $ | 262.6 | $ | — | $ | 771.0 | |||||||||||
Product sales—related parties | 81.9 | 24.4 | 36.0 | — | (99.2 | ) | 43.1 | ||||||||||||||||
Midstream services | 27.5 | 57.2 | 24.2 | 16.8 | — | 125.7 | |||||||||||||||||
Midstream services—related parties | 109.5 | 29.9 | 47.7 | 5.2 | (27.0 | ) | 165.3 | ||||||||||||||||
Cost of sales | (134.1 | ) | (471.5 | ) | (58.3 | ) | (250.5 | ) | 126.2 | (788.2 | ) | ||||||||||||
Operating expenses | (42.9 | ) | (23.5 | ) | (12.6 | ) | (19.0 | ) | — | (98.0 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (0.5 | ) | (0.5 | ) | |||||||||||||||
Segment profit (loss) | $ | 103.2 | $ | 47.4 | $ | 53.2 | $ | 15.1 | $ | (0.5 | ) | $ | 218.4 | ||||||||||
Depreciation and amortization | $ | (48.7 | ) | $ | (28.8 | ) | $ | (35.6 | ) | $ | (10.7 | ) | $ | (2.4 | ) | $ | (126.2 | ) | |||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 51.8 | $ | 15.4 | $ | 58.3 | $ | 12.8 | $ | 8.6 | $ | 146.9 |
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||
Product sales | $ | 240.5 | $ | 1,735.5 | $ | 84.7 | $ | 913.2 | $ | — | $ | 2,973.9 | |||||||||||
Product sales—related parties | 352.6 | 25.6 | 221.4 | 0.8 | (493.1 | ) | 107.3 | ||||||||||||||||
Midstream services | 85.1 | 159.7 | 105.2 | 45.7 | — | 395.7 | |||||||||||||||||
Midstream services—related parties | 319.0 | 100.2 | 171.8 | 13.4 | (96.8 | ) | 507.6 | ||||||||||||||||
Cost of sales | (554.7 | ) | (1,803.1 | ) | (335.9 | ) | (884.1 | ) | 589.9 | (2,987.9 | ) | ||||||||||||
Operating expenses | (127.9 | ) | (74.8 | ) | (45.9 | ) | (60.2 | ) | — | (308.8 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (1.1 | ) | (1.1 | ) | |||||||||||||||
Segment profit (loss) | $ | 314.6 | $ | 143.1 | $ | 201.3 | $ | 28.8 | $ | (1.1 | ) | $ | 686.7 | ||||||||||
Depreciation and amortization | $ | (161.9 | ) | $ | (86.8 | ) | $ | (115.3 | ) | $ | (35.8 | ) | $ | (7.3 | ) | $ | (407.1 | ) | |||||
Impairments | $ | — | $ | — | $ | — | $ | (8.8 | ) | $ | — | $ | (8.8 | ) | |||||||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 107.1 | $ | 55.8 | $ | 383.4 | $ | 64.4 | $ | 25.6 | $ | 636.3 | |||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 165.7 | $ | 1,118.1 | $ | 32.9 | $ | 781.1 | $ | — | $ | 2,097.8 | |||||||||||
Product sales—related parties | 191.9 | 47.0 | 69.1 | 1.1 | (209.8 | ) | 99.3 | ||||||||||||||||
Midstream services | 78.1 | 165.1 | 57.3 | 48.0 | — | 348.5 | |||||||||||||||||
Midstream services—related parties | 331.7 | 68.1 | 134.4 | 14.4 | (60.1 | ) | 488.5 | ||||||||||||||||
Cost of sales | (329.0 | ) | (1,199.1 | ) | (109.2 | ) | (739.4 | ) | 269.9 | (2,106.8 | ) | ||||||||||||
Operating expenses | (125.2 | ) | (72.2 | ) | (37.2 | ) | (61.7 | ) | — | (296.3 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (6.6 | ) | (6.6 | ) | |||||||||||||||
Segment profit (loss) | $ | 313.2 | $ | 127.0 | $ | 147.3 | $ | 43.5 | $ | (6.6 | ) | $ | 624.4 | ||||||||||
Depreciation and amortization | $ | (143.6 | ) | $ | (86.7 | ) | $ | (104.2 | ) | $ | (31.7 | ) | $ | (6.8 | ) | $ | (373.0 | ) | |||||
Impairments | $ | (473.1 | ) | $ | — | $ | — | $ | (93.2 | ) | $ | — | $ | (566.3 | ) | ||||||||
Goodwill | $ | 232.0 | $ | — | $ | 190.3 | $ | — | $ | — | $ | 422.3 | |||||||||||
Capital expenditures | $ | 132.3 | $ | 52.2 | $ | 190.6 | $ | 17.0 | $ | 15.4 | $ | 407.5 |
Segment Identifiable Assets: | September 30, 2017 | December 31, 2016 | |||||
Texas | $ | 3,113.0 | $ | 3,142.6 | |||
Louisiana | 2,395.5 | 2,349.3 | |||||
Oklahoma | 2,814.7 | 2,524.5 | |||||
Crude and Condensate | 847.2 | 836.8 | |||||
Corporate | 255.7 | 300.2 | |||||
Total identifiable assets | $ | 9,426.1 | $ | 9,153.4 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment profits | $ | 242.6 | $ | 218.4 | $ | 686.7 | $ | 624.4 | |||||||
General and administrative expenses | (30.0 | ) | (28.3 | ) | (94.6 | ) | (90.6 | ) | |||||||
Gain (loss) on disposition of assets | (1.1 | ) | 3.0 | (0.8 | ) | 2.9 | |||||||||
Depreciation and amortization | (136.3 | ) | (126.2 | ) | (407.1 | ) | (373.0 | ) | |||||||
Impairments | (1.8 | ) | — | (8.8 | ) | (566.3 | ) | ||||||||
Gain on litigation settlement | — | — | 26.0 | — | |||||||||||
Operating income (loss) | $ | 73.4 | $ | 66.9 | $ | 201.4 | $ | (402.6 | ) |
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Nine Months Ended September 30, | ||||||||
Non-cash financing activities: | 2017 | 2016 | ||||||
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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September 30, 2017 | December 31, 2016 | ||||||
Natural gas and NGLs inventory | $ | 59.1 | $ | 17.4 | |||
Prepaid expenses and other | 13.9 | 13.6 | |||||
Natural gas and NGLs inventory, prepaid expenses and other | $ | 73.0 | $ | 31.0 |
September 30, 2017 | December 31, 2016 | ||||||
Accrued interest | $ | 64.7 | $ | 34.2 | |||
Accrued wages and benefits, including taxes | 23.2 | 19.0 | |||||
Accrued ad valorem taxes | 33.5 | 23.5 | |||||
Capital expenditure accruals | 43.6 | 64.6 | |||||
Onerous performance obligations | 15.4 | 15.9 | |||||
Other | 54.1 | 59.8 | |||||
Other current liabilities | $ | 234.5 | $ | 217.0 |
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