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• | 100.0% ownership interest in EnLink Midstream Partners GP, LLC, the general partner of the Partnership, which owns a 0.6% general partner interest and all of the incentive distribution rights in the Partnership; and |
• | 25% limited partner interest in Midstream Holdings. |
|
|
Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Property, plant and equipment | $ | 225.3 | ||
Intangibles | 13.0 | |||
Liabilities assumed: | ||||
Current liabilities | (6.8 | ) | ||
Total identifiable net assets | $ | 231.5 |
Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Current assets (including $21.1 million in cash) | $ | 106.1 | ||
Property, plant and equipment | 29.3 | |||
Intangibles | 49.2 | |||
Goodwill | 25.3 | |||
Liabilities assumed: | ||||
Current liabilities | (106.1 | ) | ||
Deferred tax liability | (3.8 | ) | ||
Total identifiable net assets | $ | 100.0 |
Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Current assets (including $9.6 million in cash) | $ | 26.2 | ||
Property, plant and equipment | 306.0 | |||
Intangibles | 294.0 | |||
Liabilities assumed: | ||||
Current liabilities | (24.1 | ) | ||
Total identifiable net assets | $ | 602.1 |
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in millions, except for per unit data) | ||||||||
Pro forma total revenues (1) | $ | 1,058.5 | $ | 1,381.2 | ||||
Pro forma net income | $ | 19.5 | $ | 19.8 | ||||
Pro forma net income attributable to EnLink Midstream, LLC | $ | 15.7 | $ | 18.4 | ||||
Pro forma net income per common unit: | ||||||||
Basic | $ | 0.10 | $ | 0.11 | ||||
Diluted | $ | 0.10 | $ | 0.11 |
(1) | Effective March 1, 2014, Midstream Holdings entered into gathering and processing agreements with Devon, which are described in Note 5. |
|
March 31, 2015 | December 31, 2014 | |||||||
(in millions) | ||||||||
Texas | $ | 1,168.2 | $ | 1,168.2 | ||||
Louisiana | 786.8 | 786.8 | ||||||
Oklahoma | 190.3 | 190.3 | ||||||
Crude and Condensate | 137.8 | 112.5 | ||||||
Corporate | 1,426.9 | 1,426.9 | ||||||
Total | $ | 3,710.0 | $ | 3,684.7 |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
March 31, 2015 | ||||||||||||
Customer relationships | $ | 925.8 | $ | (48.2 | ) | $ | 877.6 | |||||
December 31, 2014 | ||||||||||||
Customer relationships | $ | 569.5 | $ | (36.5 | ) | $ | 533.0 |
2015 | $ | 51.7 | |
2016 | 67.0 | ||
2017 | 67.0 | ||
2018 | 67.0 | ||
2019 | 66.1 | ||
Thereafter | 558.8 | ||
Total | $ | 877.6 |
|
Three Month Ended March 31, | |||
2014 | |||
Continuing Operations: | |||
Revenues - affiliates | $ | (436.4 | ) |
Operating cost and expenses - affiliates | 340.0 | ||
Net affiliate transactions | (96.4 | ) | |
Capital expenditures | 21.3 | ||
Other third-party transactions, net | 53.0 | ||
Net third-party transactions | 74.3 | ||
Net cash distributions to Devon - continuing operations | (22.1 | ) | |
Non-cash distribution of net assets to Devon | (26.2 | ) | |
Total net distributions per equity | $ | (48.3 | ) |
Discontinued operations: | |||
Revenues - affiliates | $ | (10.4 | ) |
Operating costs and expenses - affiliates | 5.0 | ||
Net affiliate transactions | (5.4 | ) | |
Capital expenditures | 0.6 | ||
Other third-party transactions, net | 0.4 | ||
Net third-party transactions | 1.0 | ||
Net cash distributions to Devon and non-controlling interests - discontinued operations | (4.4 | ) | |
Non-cash distribution of net assets to Devon | (39.9 | ) | |
Total net distributions per equity | $ | (44.3 | ) |
Total distributions- continuing and discontinued operations | $ | (92.6 | ) |
|
March 31, 2015 | December 31, 2014 | ||||||
Partnership credit facility (due 2020), interest based on Prime and/or LIBOR plus an applicable margin, interest rate at March 31, 2015 and December 31, 2014 was 1.6% and 1.9% respectively | $ | 709.0 | $ | 237.0 | |||
Company credit facility (due 2019) | — | — | |||||
The Partnership's senior unsecured notes (due 2019), net of discount of $0.5 million, which bear interest at the rate of 2.70% | 399.5 | 399.5 | |||||
The Partnership's senior unsecured notes (due 2022), including a premium of $21.1 million at March 31, 2015 and $21.9 million at December 31, 2014, which bear interest at the rate of 7.125% | 183.7 | 184.4 | |||||
The Partnership's senior unsecured notes (due 2024), net of premium of $3.1 million at March 31, 2015 and $3.2 million at December 31, 2014, which bear interest at the rate of 4.40% | 553.1 | 553.2 | |||||
The Partnership's senior unsecured notes (due 2044), net of discount of $0.3 million, which bear interest at the rate of 5.60% | 349.7 | 349.7 | |||||
The Partnership's senior unsecured notes (due 2045), net of discount of $1.6 million at March 31, 2015 and $1.7 million at December 31, 2014, which bear interest at the rate of 5.05% | 298.4 | 298.3 | |||||
Other debt | 0.3 | 0.4 | |||||
Debt classified as long-term | $ | 2,493.7 | $ | 2,022.5 |
|
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Predecessor income tax expense | $ | — | $ | 19.4 | ||||
ENLC income tax expense | 10.6 | 4.3 | ||||||
Total income tax expense | $ | 10.6 | $ | 23.7 |
|
Declaration period | Distribution/unit | Date paid/payable | ||||
Fourth Quarter of 2014 | $ | 0.375 | February 12, 2015 | |||
First Quarter of 2015 (1) | $ | 0.38 | May 14, 2015 |
Three Months Ended March 31, | |||||||
2015 | 2014* | ||||||
Income allocation for incentive distributions | $ | 8.8 | $ | 1.4 | |||
Unit-based compensation attributable to ENLC’s restricted units | (7.0 | ) | (0.6 | ) | |||
General Partner interest in net income | 0.1 | 0.1 | |||||
General Partner interest in drop down transactions | 8.6 | 5.1 | |||||
General Partner share of net income | $ | 10.5 | $ | 6.0 |
|
Three Months Ended March 31, | ||||||||
2015 | 2014* | |||||||
Net income attributable to EnLink Midstream, LLC | $ | 16.3 | $ | 6.8 | ||||
Distributed earnings allocated to: | ||||||||
Common units (1) (2) | $ | 40.2 | $ | 14.5 | ||||
Unvested restricted units (1) | 0.2 | 0.1 | ||||||
Total distributed earnings | $ | 40.4 | $ | 14.6 | ||||
Undistributed loss allocated to: | ||||||||
Common units | $ | (24.0 | ) | $ | (7.8 | ) | ||
Unvested restricted units | (0.1 | ) | — | |||||
Total undistributed loss | $ | (24.1 | ) | $ | (7.8 | ) | ||
Net income allocated to: | ||||||||
Common units | $ | 16.2 | $ | 6.7 | ||||
Unvested restricted units | 0.1 | 0.1 | ||||||
Total net income | $ | 16.3 | $ | 6.8 | ||||
Total basic and diluted net income per unit: | ||||||||
Basic | $ | 0.10 | $ | 0.04 | ||||
Diluted | $ | 0.10 | $ | 0.04 |
Three Months Ended March 31, | ||||||
2015 | 2014* | |||||
Basic and diluted earnings per unit: | ||||||
Weighted average Class B Units outstanding | — | 115.5 | ||||
Weighted average common units outstanding | 164.2 | 48.5 | ||||
Total weighted average common units outstanding | 164.2 | 164.0 | ||||
Diluted weighted average units outstanding: | ||||||
Weighted average basic common units outstanding | 164.2 | 164.0 | ||||
Dilutive effect of restricted units issued | 0.3 | 0.7 | ||||
Total weighted average diluted common units outstanding | 164.5 | 164.7 |
|
March 31, 2015 | March 31, 2014 | ||||||
(in millions) | |||||||
Beginning asset retirement obligations | $ | 19.1 | $ | 7.7 | |||
Revisions to existing liabilities | (3.9 | ) | — | ||||
Liabilities acquired | — | 0.5 | |||||
Accretion | 0.1 | 0.2 | |||||
Liabilities settled | (3.2 | ) | — | ||||
Ending asset retirement obligations | $ | 12.1 | $ | 8.4 |
|
Gulf Coast Fractionators | Howard Energy Partners | Total | |||||||||
Three months ended | |||||||||||
March 31, 2015 | |||||||||||
Distributions | $ | 2.7 | $ | 4.1 | $ | 6.8 | |||||
Equity in income | $ | 3.3 | $ | 0.4 | $ | 3.7 | |||||
March 31, 2014 | |||||||||||
Distributions (1) | $ | — | $ | 2.7 | $ | 2.7 | |||||
Equity in income | $ | 4.1 | $ | 0.1 | $ | 4.2 |
March 31, 2015 | December 31, 2014 | ||||||
Gulf Coast Fractionators | $ | 54.7 | $ | 54.1 | |||
Howard Energy Partners | 213.1 | 216.7 | |||||
Total investments in unconsolidated affiliates | $ | 267.8 | $ | 270.8 |
|
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Cost of unit-based compensation allocated to Predecessor general and administrative expense (1) | $ | — | $ | 2.8 | |||
Cost of unit-based compensation charged to general and administrative expense | 12.0 | 1.0 | |||||
Cost of unit-based compensation charged to operating expense | 1.9 | 0.2 | |||||
Total amount charged to income | $ | 13.9 | $ | 4.0 | |||
Interest of non-controlling partners in unit-based compensation | $ | 5.4 | $ | 0.5 | |||
Amount of related income tax benefit recognized in income | $ | 3.2 | $ | 1.2 |
(1) | Unit-based compensation expense was treated as a contribution by the Predecessor in the Consolidated Statement of Changes in Members' Equity in 2014. |
Three Months Ended March 31, 2015 | ||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 1,022,191 | $ | 31.25 | |||||
Granted | 542,723 | 27.07 | ||||||
Vested* | (244,998 | ) | 28.62 | |||||
Forfeited | (55,193 | ) | 31.48 | |||||
Non-vested, end of period | 1,264,723 | $ | 29.96 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 31.3 |
Three Months Ended March 31, | ||||
EnLink Midstream Partners, LP Restricted Incentive Units: | 2015 | |||
Aggregate intrinsic value of units vested | $ | 6.8 | ||
Fair value of units vested | $ | 7.0 |
Three Months Ended March 31, | ||||
2015 | ||||
Beginning TSR Price | $ | 27.68 | ||
Risk-free interest rate | 0.99 | % | ||
Volatility factor | 33.01 | % | ||
Distribution yield | 5.66 | % |
Three Months Ended March 31, 2015 | ||||||||
EnLink Midstream Partners, LP Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | — | $ | — | |||||
Granted | 108,713 | 36.18 | ||||||
Vested | — | — | ||||||
Non-vested, end of period | 108,713 | $ | 36.18 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 2.7 |
Three Months Ended March 31, 2015 | ||||||||
EnLink Midstream, LLC Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 986,472 | $ | 37.03 | |||||
Granted | 462,875 | 31.74 | ||||||
Vested* | (240,760 | ) | 35.71 | |||||
Forfeited | (47,473 | ) | 36.60 | |||||
Non-vested, end of period | 1,161,114 | $ | 35.21 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 37.8 |
Three Months Ended March 31, | ||||
EnLink Midstream, LLC Restricted Incentive Units: | 2015 | |||
Aggregate intrinsic value of units vested | $ | 8.3 | ||
Fair value of units vested | $ | 8.6 |
Three Months Ended March 31, | ||||
EnLink Midstream, LLC Performance Units: | 2015 | |||
Beginning TSR Price | $ | 34.24 | ||
Risk-free interest rate | 0.99 | % | ||
Volatility factor | 33.02 | % | ||
Distribution yield | 2.98 | % |
Three Months Ended March 31, 2015 | ||||||||
EnLink Midstream, LLC Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | — | $ | — | |||||
Granted | 96,963 | 41.31 | ||||||
Vested | — | — | ||||||
Non-vested, end of period | 96,963 | $ | 41.31 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 3.2 |
|
Three Months Ended March 31, | |||||||
2015 | 2014* | ||||||
Change in fair value of derivatives | $ | (3.7 | ) | $ | (0.7 | ) | |
Realized gain (loss) on derivatives | 3.9 | (0.6 | ) | ||||
Gain (loss) on derivative activity | $ | 0.2 | $ | (1.3 | ) |
March 31, 2015 | December 31, 2014 | ||||||
Fair value of derivative assets — current | $ | 14.3 | $ | 16.7 | |||
Fair value of derivative assets — long term | 7.6 | 10.0 | |||||
Fair value of derivative liabilities — current | (3.0 | ) | (3.0 | ) | |||
Fair value of derivative liabilities — long term | (1.5 | ) | (2.0 | ) | |||
Net fair value of derivatives | $ | 17.4 | $ | 21.7 |
March 31, 2015 | |||||||||||
Commodity | Instruments | Unit | Volume | Fair Value | |||||||
(In millions) | |||||||||||
NGL (short contracts) | Swaps | Gallons | (54.7 | ) | $ | 21.7 | |||||
NGL (long contracts) | Swaps | Gallons | 44.6 | (4.1 | ) | ||||||
Natural Gas (short contracts) | Swaps | MMBtu | (0.6 | ) | 0.1 | ||||||
Natural Gas (long contracts) | Swaps | MMBtu | 0.4 | (0.3 | ) | ||||||
Condensate (short contracts) | Swaps | MBbls | — | (0.1 | ) | ||||||
Condensate (long contracts) | Swaps | MBbls | — | 0.1 | |||||||
Total fair value of derivatives | $ | 17.4 |
Maturity Periods | |||||||||||||||
Less than one year | One to two years | More than two years | Total fair value | ||||||||||||
March 31, 2015 | $ | 11.3 | $ | 6.1 | $ | — | $ | 17.4 |
|
March 31, 2015 Level 2 | December 31, 2014 Level 2 | ||||||
Commodity Swaps* | $ | 17.4 | $ | 21.7 | |||
Total | $ | 17.4 | $ | 21.7 |
March 31, 2015 | December 31, 2014 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt | $ | 2,493.7 | $ | 2,571.2 | $ | 2,022.5 | $ | 2,026.1 | |||||||
Obligations under capital leases | $ | 19.3 | $ | 18.7 | $ | 20.3 | $ | 19.8 |
|
|
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Sales to external customers | $ | 70.7 | $ | 429.7 | $ | 9.0 | $ | 263.7 | $ | — | $ | 773.1 | |||||||||||
Sales to affiliates | 140.6 | 11.9 | 34.9 | — | (24.4 | ) | 163.0 | ||||||||||||||||
Purchased gas, NGLs, condensate and crude oil | (66.5 | ) | (376.4 | ) | (3.4 | ) | (235.5 | ) | 24.4 | (657.4 | ) | ||||||||||||
Operating expenses | (48.5 | ) | (22.5 | ) | (7.9 | ) | (17.3 | ) | — | (96.2 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 0.2 | 0.2 | |||||||||||||||||
Segment profit | $ | 96.3 | $ | 42.7 | $ | 32.6 | $ | 10.9 | $ | 0.2 | $ | 182.7 | |||||||||||
Depreciation and amortization | $ | (36.5 | ) | $ | (27.4 | ) | $ | (13.5 | ) | $ | (11.1 | ) | $ | (1.5 | ) | $ | (90.0 | ) | |||||
Goodwill | $ | 1,168.2 | $ | 786.8 | $ | 190.3 | $ | 137.8 | $ | 1,426.9 | $ | 3,710.0 | |||||||||||
Capital expenditures | $ | 73.7 | $ | 17.8 | $ | 5.4 | $ | 52.3 | $ | 4.3 | $ | 153.5 | |||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Sales to external customers | $ | 48.3 | $ | 152.5 | $ | 11.5 | $ | 20.1 | $ | — | $ | 232.4 | |||||||||||
Sales to affiliates | 335.9 | 0.5 | 162.9 | — | (7.4 | ) | 491.9 | ||||||||||||||||
Purchased gas, NGLs, condensate and crude oil | (257.7 | ) | (140.5 | ) | (133.8 | ) | (14.3 | ) | 7.4 | (538.9 | ) | ||||||||||||
Operating expenses | (31.7 | ) | (5.1 | ) | (6.7 | ) | (2.7 | ) | — | (46.2 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (1.3 | ) | (1.3 | ) | |||||||||||||||
Segment profit | $ | 94.8 | $ | 7.4 | $ | 33.9 | $ | 3.1 | $ | (1.3 | ) | $ | 137.9 | ||||||||||
Depreciation and amortization | $ | (27.2 | ) | $ | (5.2 | ) | $ | (14.2 | ) | $ | (1.5 | ) | $ | (0.1 | ) | $ | (48.2 | ) | |||||
Goodwill | $ | 1,256.7 | $ | 885.1 | $ | 190.3 | $ | 106.0 | $ | 1,383.5 | $ | 3,821.6 | |||||||||||
Capital expenditures | $ | 25.1 | $ | 22.1 | $ | 10.2 | $ | 5.0 | $ | 5.5 | $ | 67.9 |
March 31, 2015 | December 31, 2014 | ||||||
Segment Identifiable Assets: | (In millions) | ||||||
Texas | $ | 3,958.7 | $ | 3,303.0 | |||
Louisiana | 3,175.7 | 3,316.5 | |||||
Oklahoma | 883.4 | 892.8 | |||||
Crude and Condensate | 1,036.7 | 762.5 | |||||
Corporate | 1,838.0 | 1,822.5 | |||||
Total identifiable assets | $ | 10,892.5 | $ | 10,097.3 |
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Segment profits | $ | 182.7 | $ | 137.9 | |||
General and administrative expenses | (42.9 | ) | (15.7 | ) | |||
Depreciation and amortization | (90.0 | ) | (48.2 | ) | |||
Operating income | $ | 49.8 | $ | 74.0 |
|
Three Months Ended March 31, | |||
2014 | |||
Revenues: | |||
Revenues | $ | 6.8 | |
Revenues - affiliates | 10.5 | ||
Total revenues | 17.3 | ||
Operating costs and expenses: | |||
Operating expenses | 15.7 | ||
Total operating costs and expenses | 15.7 | ||
Income before income taxes | 1.6 | ||
Income tax provision | 0.6 | ||
Net income | $ | 1.0 |
|
Three Months Ended March 31, | ||||
2015 | ||||
(Millions) | ||||
Non-cash financing activities: | ||||
Non-cash issuance of common units (1) | $ | 180.0 | ||
Non-cash issuance of Class C Common Units (1) | $ | 180.0 |
(1) | Non-cash common units and Class C Common Units were issued as partial consideration for the Coronado acquisition. See Note 3 - Acquisitions for further discussion. |
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Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in millions, except for per unit data) | ||||||||
Pro forma total revenues (1) | $ | 1,058.5 | $ | 1,381.2 | ||||
Pro forma net income | $ | 19.5 | $ | 19.8 | ||||
Pro forma net income attributable to EnLink Midstream, LLC | $ | 15.7 | $ | 18.4 | ||||
Pro forma net income per common unit: | ||||||||
Basic | $ | 0.10 | $ | 0.11 | ||||
Diluted | $ | 0.10 | $ | 0.11 |
Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Property, plant and equipment | $ | 225.3 | ||
Intangibles | 13.0 | |||
Liabilities assumed: | ||||
Current liabilities | (6.8 | ) | ||
Total identifiable net assets | $ | 231.5 |
Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Current assets (including $21.1 million in cash) | $ | 106.1 | ||
Property, plant and equipment | 29.3 | |||
Intangibles | 49.2 | |||
Goodwill | 25.3 | |||
Liabilities assumed: | ||||
Current liabilities | (106.1 | ) | ||
Deferred tax liability | (3.8 | ) | ||
Total identifiable net assets | $ | 100.0 |
Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Current assets (including $9.6 million in cash) | $ | 26.2 | ||
Property, plant and equipment | 306.0 | |||
Intangibles | 294.0 | |||
Liabilities assumed: | ||||
Current liabilities | (24.1 | ) | ||
Total identifiable net assets | $ | 602.1 |
|
March 31, 2015 | December 31, 2014 | |||||||
(in millions) | ||||||||
Texas | $ | 1,168.2 | $ | 1,168.2 | ||||
Louisiana | 786.8 | 786.8 | ||||||
Oklahoma | 190.3 | 190.3 | ||||||
Crude and Condensate | 137.8 | 112.5 | ||||||
Corporate | 1,426.9 | 1,426.9 | ||||||
Total | $ | 3,710.0 | $ | 3,684.7 |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
March 31, 2015 | ||||||||||||
Customer relationships | $ | 925.8 | $ | (48.2 | ) | $ | 877.6 | |||||
December 31, 2014 | ||||||||||||
Customer relationships | $ | 569.5 | $ | (36.5 | ) | $ | 533.0 |
2015 | $ | 51.7 | |
2016 | 67.0 | ||
2017 | 67.0 | ||
2018 | 67.0 | ||
2019 | 66.1 | ||
Thereafter | 558.8 | ||
Total | $ | 877.6 |
|
Three Month Ended March 31, | |||
2014 | |||
Continuing Operations: | |||
Revenues - affiliates | $ | (436.4 | ) |
Operating cost and expenses - affiliates | 340.0 | ||
Net affiliate transactions | (96.4 | ) | |
Capital expenditures | 21.3 | ||
Other third-party transactions, net | 53.0 | ||
Net third-party transactions | 74.3 | ||
Net cash distributions to Devon - continuing operations | (22.1 | ) | |
Non-cash distribution of net assets to Devon | (26.2 | ) | |
Total net distributions per equity | $ | (48.3 | ) |
Discontinued operations: | |||
Revenues - affiliates | $ | (10.4 | ) |
Operating costs and expenses - affiliates | 5.0 | ||
Net affiliate transactions | (5.4 | ) | |
Capital expenditures | 0.6 | ||
Other third-party transactions, net | 0.4 | ||
Net third-party transactions | 1.0 | ||
Net cash distributions to Devon and non-controlling interests - discontinued operations | (4.4 | ) | |
Non-cash distribution of net assets to Devon | (39.9 | ) | |
Total net distributions per equity | $ | (44.3 | ) |
Total distributions- continuing and discontinued operations | $ | (92.6 | ) |
|
March 31, 2015 | December 31, 2014 | ||||||
Partnership credit facility (due 2020), interest based on Prime and/or LIBOR plus an applicable margin, interest rate at March 31, 2015 and December 31, 2014 was 1.6% and 1.9% respectively | $ | 709.0 | $ | 237.0 | |||
Company credit facility (due 2019) | — | — | |||||
The Partnership's senior unsecured notes (due 2019), net of discount of $0.5 million, which bear interest at the rate of 2.70% | 399.5 | 399.5 | |||||
The Partnership's senior unsecured notes (due 2022), including a premium of $21.1 million at March 31, 2015 and $21.9 million at December 31, 2014, which bear interest at the rate of 7.125% | 183.7 | 184.4 | |||||
The Partnership's senior unsecured notes (due 2024), net of premium of $3.1 million at March 31, 2015 and $3.2 million at December 31, 2014, which bear interest at the rate of 4.40% | 553.1 | 553.2 | |||||
The Partnership's senior unsecured notes (due 2044), net of discount of $0.3 million, which bear interest at the rate of 5.60% | 349.7 | 349.7 | |||||
The Partnership's senior unsecured notes (due 2045), net of discount of $1.6 million at March 31, 2015 and $1.7 million at December 31, 2014, which bear interest at the rate of 5.05% | 298.4 | 298.3 | |||||
Other debt | 0.3 | 0.4 | |||||
Debt classified as long-term | $ | 2,493.7 | $ | 2,022.5 |
|
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Predecessor income tax expense | $ | — | $ | 19.4 | ||||
ENLC income tax expense | 10.6 | 4.3 | ||||||
Total income tax expense | $ | 10.6 | $ | 23.7 |
|
Declaration period | Distribution/unit | Date paid/payable | ||||
Fourth Quarter of 2014 | $ | 0.375 | February 12, 2015 | |||
First Quarter of 2015 (1) | $ | 0.38 | May 14, 2015 |
Three Months Ended March 31, | |||||||
2015 | 2014* | ||||||
Income allocation for incentive distributions | $ | 8.8 | $ | 1.4 | |||
Unit-based compensation attributable to ENLC’s restricted units | (7.0 | ) | (0.6 | ) | |||
General Partner interest in net income | 0.1 | 0.1 | |||||
General Partner interest in drop down transactions | 8.6 | 5.1 | |||||
General Partner share of net income | $ | 10.5 | $ | 6.0 |
|
Three Months Ended March 31, | ||||||||
2015 | 2014* | |||||||
Net income attributable to EnLink Midstream, LLC | $ | 16.3 | $ | 6.8 | ||||
Distributed earnings allocated to: | ||||||||
Common units (1) (2) | $ | 40.2 | $ | 14.5 | ||||
Unvested restricted units (1) | 0.2 | 0.1 | ||||||
Total distributed earnings | $ | 40.4 | $ | 14.6 | ||||
Undistributed loss allocated to: | ||||||||
Common units | $ | (24.0 | ) | $ | (7.8 | ) | ||
Unvested restricted units | (0.1 | ) | — | |||||
Total undistributed loss | $ | (24.1 | ) | $ | (7.8 | ) | ||
Net income allocated to: | ||||||||
Common units | $ | 16.2 | $ | 6.7 | ||||
Unvested restricted units | 0.1 | 0.1 | ||||||
Total net income | $ | 16.3 | $ | 6.8 | ||||
Total basic and diluted net income per unit: | ||||||||
Basic | $ | 0.10 | $ | 0.04 | ||||
Diluted | $ | 0.10 | $ | 0.04 |
Three Months Ended March 31, | ||||||
2015 | 2014* | |||||
Basic and diluted earnings per unit: | ||||||
Weighted average Class B Units outstanding | — | 115.5 | ||||
Weighted average common units outstanding | 164.2 | 48.5 | ||||
Total weighted average common units outstanding | 164.2 | 164.0 | ||||
Diluted weighted average units outstanding: | ||||||
Weighted average basic common units outstanding | 164.2 | 164.0 | ||||
Dilutive effect of restricted units issued | 0.3 | 0.7 | ||||
Total weighted average diluted common units outstanding | 164.5 | 164.7 |
|
March 31, 2015 | March 31, 2014 | ||||||
(in millions) | |||||||
Beginning asset retirement obligations | $ | 19.1 | $ | 7.7 | |||
Revisions to existing liabilities | (3.9 | ) | — | ||||
Liabilities acquired | — | 0.5 | |||||
Accretion | 0.1 | 0.2 | |||||
Liabilities settled | (3.2 | ) | — | ||||
Ending asset retirement obligations | $ | 12.1 | $ | 8.4 |
|
March 31, 2015 | December 31, 2014 | ||||||
Gulf Coast Fractionators | $ | 54.7 | $ | 54.1 | |||
Howard Energy Partners | 213.1 | 216.7 | |||||
Total investments in unconsolidated affiliates | $ | 267.8 | $ | 270.8 |
Gulf Coast Fractionators | Howard Energy Partners | Total | |||||||||
Three months ended | |||||||||||
March 31, 2015 | |||||||||||
Distributions | $ | 2.7 | $ | 4.1 | $ | 6.8 | |||||
Equity in income | $ | 3.3 | $ | 0.4 | $ | 3.7 | |||||
March 31, 2014 | |||||||||||
Distributions (1) | $ | — | $ | 2.7 | $ | 2.7 | |||||
Equity in income | $ | 4.1 | $ | 0.1 | $ | 4.2 |
|
Three Months Ended March 31, | ||||
2015 | ||||
Beginning TSR Price | $ | 27.68 | ||
Risk-free interest rate | 0.99 | % | ||
Volatility factor | 33.01 | % | ||
Distribution yield | 5.66 | % |
Three Months Ended March 31, | ||||
EnLink Midstream, LLC Performance Units: | 2015 | |||
Beginning TSR Price | $ | 34.24 | ||
Risk-free interest rate | 0.99 | % | ||
Volatility factor | 33.02 | % | ||
Distribution yield | 2.98 | % |
Three Months Ended March 31, 2015 | ||||||||
EnLink Midstream Partners, LP Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | — | $ | — | |||||
Granted | 108,713 | 36.18 | ||||||
Vested | — | — | ||||||
Non-vested, end of period | 108,713 | $ | 36.18 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 2.7 |
Three Months Ended March 31, 2015 | ||||||||
EnLink Midstream, LLC Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | — | $ | — | |||||
Granted | 96,963 | 41.31 | ||||||
Vested | — | — | ||||||
Non-vested, end of period | 96,963 | $ | 41.31 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 3.2 |
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Cost of unit-based compensation allocated to Predecessor general and administrative expense (1) | $ | — | $ | 2.8 | |||
Cost of unit-based compensation charged to general and administrative expense | 12.0 | 1.0 | |||||
Cost of unit-based compensation charged to operating expense | 1.9 | 0.2 | |||||
Total amount charged to income | $ | 13.9 | $ | 4.0 | |||
Interest of non-controlling partners in unit-based compensation | $ | 5.4 | $ | 0.5 | |||
Amount of related income tax benefit recognized in income | $ | 3.2 | $ | 1.2 |
(1) | Unit-based compensation expense was treated as a contribution by the Predecessor in the Consolidated Statement of Changes in Members' Equity in 2014. |
Three Months Ended March 31, 2015 | ||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 1,022,191 | $ | 31.25 | |||||
Granted | 542,723 | 27.07 | ||||||
Vested* | (244,998 | ) | 28.62 | |||||
Forfeited | (55,193 | ) | 31.48 | |||||
Non-vested, end of period | 1,264,723 | $ | 29.96 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 31.3 |
Three Months Ended March 31, 2015 | ||||||||
EnLink Midstream, LLC Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 986,472 | $ | 37.03 | |||||
Granted | 462,875 | 31.74 | ||||||
Vested* | (240,760 | ) | 35.71 | |||||
Forfeited | (47,473 | ) | 36.60 | |||||
Non-vested, end of period | 1,161,114 | $ | 35.21 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 37.8 |
Three Months Ended March 31, | ||||
EnLink Midstream Partners, LP Restricted Incentive Units: | 2015 | |||
Aggregate intrinsic value of units vested | $ | 6.8 | ||
Fair value of units vested | $ | 7.0 |
Three Months Ended March 31, | ||||
EnLink Midstream, LLC Restricted Incentive Units: | 2015 | |||
Aggregate intrinsic value of units vested | $ | 8.3 | ||
Fair value of units vested | $ | 8.6 |
|
Three Months Ended March 31, | |||||||
2015 | 2014* | ||||||
Change in fair value of derivatives | $ | (3.7 | ) | $ | (0.7 | ) | |
Realized gain (loss) on derivatives | 3.9 | (0.6 | ) | ||||
Gain (loss) on derivative activity | $ | 0.2 | $ | (1.3 | ) |
March 31, 2015 | December 31, 2014 | ||||||
Fair value of derivative assets — current | $ | 14.3 | $ | 16.7 | |||
Fair value of derivative assets — long term | 7.6 | 10.0 | |||||
Fair value of derivative liabilities — current | (3.0 | ) | (3.0 | ) | |||
Fair value of derivative liabilities — long term | (1.5 | ) | (2.0 | ) | |||
Net fair value of derivatives | $ | 17.4 | $ | 21.7 |
March 31, 2015 | |||||||||||
Commodity | Instruments | Unit | Volume | Fair Value | |||||||
(In millions) | |||||||||||
NGL (short contracts) | Swaps | Gallons | (54.7 | ) | $ | 21.7 | |||||
NGL (long contracts) | Swaps | Gallons | 44.6 | (4.1 | ) | ||||||
Natural Gas (short contracts) | Swaps | MMBtu | (0.6 | ) | 0.1 | ||||||
Natural Gas (long contracts) | Swaps | MMBtu | 0.4 | (0.3 | ) | ||||||
Condensate (short contracts) | Swaps | MBbls | — | (0.1 | ) | ||||||
Condensate (long contracts) | Swaps | MBbls | — | 0.1 | |||||||
Total fair value of derivatives | $ | 17.4 |
Maturity Periods | |||||||||||||||
Less than one year | One to two years | More than two years | Total fair value | ||||||||||||
March 31, 2015 | $ | 11.3 | $ | 6.1 | $ | — | $ | 17.4 |
|
March 31, 2015 Level 2 | December 31, 2014 Level 2 | ||||||
Commodity Swaps* | $ | 17.4 | $ | 21.7 | |||
Total | $ | 17.4 | $ | 21.7 |
March 31, 2015 | December 31, 2014 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt | $ | 2,493.7 | $ | 2,571.2 | $ | 2,022.5 | $ | 2,026.1 | |||||||
Obligations under capital leases | $ | 19.3 | $ | 18.7 | $ | 20.3 | $ | 19.8 |
|
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Sales to external customers | $ | 70.7 | $ | 429.7 | $ | 9.0 | $ | 263.7 | $ | — | $ | 773.1 | |||||||||||
Sales to affiliates | 140.6 | 11.9 | 34.9 | — | (24.4 | ) | 163.0 | ||||||||||||||||
Purchased gas, NGLs, condensate and crude oil | (66.5 | ) | (376.4 | ) | (3.4 | ) | (235.5 | ) | 24.4 | (657.4 | ) | ||||||||||||
Operating expenses | (48.5 | ) | (22.5 | ) | (7.9 | ) | (17.3 | ) | — | (96.2 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 0.2 | 0.2 | |||||||||||||||||
Segment profit | $ | 96.3 | $ | 42.7 | $ | 32.6 | $ | 10.9 | $ | 0.2 | $ | 182.7 | |||||||||||
Depreciation and amortization | $ | (36.5 | ) | $ | (27.4 | ) | $ | (13.5 | ) | $ | (11.1 | ) | $ | (1.5 | ) | $ | (90.0 | ) | |||||
Goodwill | $ | 1,168.2 | $ | 786.8 | $ | 190.3 | $ | 137.8 | $ | 1,426.9 | $ | 3,710.0 | |||||||||||
Capital expenditures | $ | 73.7 | $ | 17.8 | $ | 5.4 | $ | 52.3 | $ | 4.3 | $ | 153.5 | |||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Sales to external customers | $ | 48.3 | $ | 152.5 | $ | 11.5 | $ | 20.1 | $ | — | $ | 232.4 | |||||||||||
Sales to affiliates | 335.9 | 0.5 | 162.9 | — | (7.4 | ) | 491.9 | ||||||||||||||||
Purchased gas, NGLs, condensate and crude oil | (257.7 | ) | (140.5 | ) | (133.8 | ) | (14.3 | ) | 7.4 | (538.9 | ) | ||||||||||||
Operating expenses | (31.7 | ) | (5.1 | ) | (6.7 | ) | (2.7 | ) | — | (46.2 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (1.3 | ) | (1.3 | ) | |||||||||||||||
Segment profit | $ | 94.8 | $ | 7.4 | $ | 33.9 | $ | 3.1 | $ | (1.3 | ) | $ | 137.9 | ||||||||||
Depreciation and amortization | $ | (27.2 | ) | $ | (5.2 | ) | $ | (14.2 | ) | $ | (1.5 | ) | $ | (0.1 | ) | $ | (48.2 | ) | |||||
Goodwill | $ | 1,256.7 | $ | 885.1 | $ | 190.3 | $ | 106.0 | $ | 1,383.5 | $ | 3,821.6 | |||||||||||
Capital expenditures | $ | 25.1 | $ | 22.1 | $ | 10.2 | $ | 5.0 | $ | 5.5 | $ | 67.9 |
March 31, 2015 | December 31, 2014 | ||||||
Segment Identifiable Assets: | (In millions) | ||||||
Texas | $ | 3,958.7 | $ | 3,303.0 | |||
Louisiana | 3,175.7 | 3,316.5 | |||||
Oklahoma | 883.4 | 892.8 | |||||
Crude and Condensate | 1,036.7 | 762.5 | |||||
Corporate | 1,838.0 | 1,822.5 | |||||
Total identifiable assets | $ | 10,892.5 | $ | 10,097.3 |
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Segment profits | $ | 182.7 | $ | 137.9 | |||
General and administrative expenses | (42.9 | ) | (15.7 | ) | |||
Depreciation and amortization | (90.0 | ) | (48.2 | ) | |||
Operating income | $ | 49.8 | $ | 74.0 |
|
Three Months Ended March 31, | |||
2014 | |||
Revenues: | |||
Revenues | $ | 6.8 | |
Revenues - affiliates | 10.5 | ||
Total revenues | 17.3 | ||
Operating costs and expenses: | |||
Operating expenses | 15.7 | ||
Total operating costs and expenses | 15.7 | ||
Income before income taxes | 1.6 | ||
Income tax provision | 0.6 | ||
Net income | $ | 1.0 |
|
Three Months Ended March 31, | ||||
2015 | ||||
(Millions) | ||||
Non-cash financing activities: | ||||
Non-cash issuance of common units (1) | $ | 180.0 | ||
Non-cash issuance of Class C Common Units (1) | $ | 180.0 |
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