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• | 100.0% ownership interest in EnLink Midstream Partners GP, LLC, the general partner of the Partnership, which owns a 0.5% general partner interest and all of the incentive distribution rights in the Partnership. |
|
• | Product sales - Product sales represent the sale of natural gas, NGLs, crude oil and condensate where the product is purchased and resold in connection with providing its midstream services as outlined above. |
• | Midstream services - Midstream services represents all other revenue generated as a result of performing the Partnership's midstream services outlined above. |
|
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) | $ | 107.4 | ||
Property, plant and equipment | 29.8 | |||
Intangibles | 43.2 | |||
Goodwill | 29.6 | |||
Liabilities assumed: | ||||
Current liabilities | (97.9 | ) | ||
Deferred tax liability | (4.0 | ) | ||
Total identifiable net assets | $ | 108.1 |
Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Current assets (including $1.4 million in cash) | $ | 20.8 | ||
Property, plant and equipment | 302.1 | |||
Intangibles | 281.0 | |||
Goodwill | 18.6 | |||
Liabilities assumed: | ||||
Current liabilities | (22.3 | ) | ||
Total identifiable net assets | $ | 600.2 |
Nine Months Ended September 30, 2015 | ||||||||||||
Company Historical | VEX | Combined | ||||||||||
(in millions) | ||||||||||||
Revenues | $ | 3,381.4 | $ | 4.2 | $ | 3,385.6 | ||||||
Net income (loss) | $ | (688.7 | ) | $ | 0.7 | $ | (688.0 | ) | ||||
Net loss attributable to non-controlling interest | $ | (526.1 | ) | $ | — | $ | (526.1 | ) | ||||
Net income (loss) attributable to EnLink Midstream, LLC | $ | (162.6 | ) | $ | 0.7 | $ | (161.9 | ) | ||||
EnLink Midstream, LLC interest in net loss | $ | (162.6 | ) | $ | — | $ | (162.6 | ) |
Three Months Ended September 30, 2014 | ||||||||||||
Company Historical | VEX | Combined | ||||||||||
(in millions) | ||||||||||||
Revenues | $ | 855.0 | $ | 2.4 | $ | 857.4 | ||||||
Net income (loss) | $ | 66.5 | $ | (2.3 | ) | $ | 64.2 | |||||
Net income attributable to non-controlling interest | $ | 37.7 | $ | — | $ | 37.7 | ||||||
Net income (loss) attributable to EnLink Midstream, LLC | $ | 28.8 | $ | (2.3 | ) | $ | 26.5 | |||||
EnLink Midstream, LLC interest in net income | $ | 28.8 | $ | — | $ | 28.8 |
Nine Months Ended September 30, 2014 | ||||||||||||
Company Historical | VEX | Combined | ||||||||||
(in millions) | ||||||||||||
Revenues | $ | 2,505.3 | $ | 2.4 | $ | 2,507.7 | ||||||
Net income (loss) | $ | 180.4 | $ | (5.3 | ) | $ | 175.1 | |||||
Net income attributable to non-controlling interest | $ | 80.5 | $ | — | $ | 80.5 | ||||||
Net income attributable to EnLink Midstream, LLC | $ | 99.9 | $ | (5.3 | ) | $ | 94.6 | |||||
EnLink Midstream, LLC interest in net income (1) | $ | 64.4 | $ | — | $ | 64.4 |
(1) | Represents net income for the period from February 28, 2014 through September 30, 2014. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2014 | 2015 | 2014 | ||||||||||
(in millions) | ||||||||||||
Pro forma total revenues (1) | $ | 1,396.4 | $ | 3,507.8 | $ | 4,233.4 | ||||||
Pro forma net income (loss) | $ | 52.9 | $ | (693.2 | ) | $ | 126.9 | |||||
Pro forma net income (loss) attributable to EnLink Midstream, LLC | $ | 26.0 | $ | (163.7 | ) | $ | 68.6 | |||||
Pro forma net income (loss) per common unit: | ||||||||||||
Basic | $ | 0.17 | $ | (1.00 | ) | $ | 0.45 | |||||
Diluted | $ | 0.17 | $ | (1.00 | ) | $ | 0.45 |
(1) | On January 1, 2014, Midstream Holdings entered into gathering and processing agreements with Devon, which are described in Note 5. |
|
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||
Balance, beginning of period | $ | 1,168.2 | $ | 786.8 | $ | 190.3 | $ | 112.5 | $ | 1,426.9 | $ | 3,684.7 | |||||||||||
Acquisitions (1) | 18.6 | — | — | 29.6 | — | 48.2 | |||||||||||||||||
Impairment | — | (576.1 | ) | — | — | — | (576.1 | ) | |||||||||||||||
Balance, end of period | $ | 1,186.8 | $ | 210.7 | $ | 190.3 | $ | 142.1 | $ | 1,426.9 | $ | 3,156.8 |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Nine Months Ended September 30, 2015 | ||||||||||||
Customer relationships, beginning of period | $ | 569.5 | $ | (36.5 | ) | $ | 533.0 | |||||
Acquisitions | 337.2 | — | 337.2 | |||||||||
Amortization expense | — | (44.3 | ) | (44.3 | ) | |||||||
Impairment | (261.0 | ) | 37.9 | (223.1 | ) | |||||||
Customer relationships, end of period | $ | 645.7 | $ | (42.9 | ) | $ | 602.8 |
2015 (remaining) | $ | 10.3 | |
2016 | 41.2 | ||
2017 | 41.2 | ||
2018 | 41.2 | ||
2019 | 41.2 | ||
Thereafter | 427.7 | ||
Total | $ | 602.8 |
|
Nine Months Ended September 30, 2014 | |||
Continuing Operations: | |||
Revenues - affiliates | $ | (436.4 | ) |
Operating cost and expenses - affiliates | 340.0 | ||
Net affiliate transactions | (96.4 | ) | |
Capital expenditures | 16.2 | ||
Other third-party transactions, net | 53.0 | ||
Net third-party transactions | 69.2 | ||
Net cash distributions to Devon - continuing operations | (27.2 | ) | |
Non-cash distribution of net assets to Devon | (23.5 | ) | |
Total net distributions per equity | $ | (50.7 | ) |
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 | $ | (95.0 | ) |
|
September 30, 2015 | December 31, 2014 | ||||||
Partnership credit facility (due 2020), interest based on Prime and/or LIBOR plus an applicable margin, interest rate at September 30, 2015 and December 31, 2014 was 1.5% and 1.9% respectively | $ | 175.0 | $ | 237.0 | |||
Company credit facility (due 2019) | — | — | |||||
The Partnership's senior unsecured notes (due 2019), net of discount of $0.4 million at September 30, 2015 and $0.5 million at December 31, 2014, which bear interest at the rate of 2.70% | 399.6 | 399.5 | |||||
The Partnership's senior unsecured notes (due 2022), including a premium of $19.7 million at September 30, 2015 and $21.9 million at December 31, 2014, which bear interest at the rate of 7.125% | 182.2 | 184.4 | |||||
The Partnership's senior unsecured notes (due 2024), net of premium of $2.9 million at September 30, 2015 and $3.2 million at December 31, 2014, which bear interest at the rate of 4.40% | 552.9 | 553.2 | |||||
Partnership's Senior unsecured notes (due 2025), net of discount of $1.2 million at September 30, 2015, which bear interest at the rate of 4.15% | 748.8 | — | |||||
The Partnership's senior unsecured notes (due 2044), net of discount of $0.3 million at September 30, 2015 and December 31, 2014, 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 $6.9 million at September 30, 2015 and $1.7 million at December 31, 2014, which bear interest at the rate of 5.05% | 443.1 | 298.3 | |||||
Other debt | 0.2 | 0.4 | |||||
Debt classified as long-term | $ | 2,851.5 | $ | 2,022.5 |
• | failure to pay any principal or interest when due; |
• | failure to observe any other agreement, obligation or other covenant in the indenture, subject to the cure periods for certain failures; |
• | our default under other indebtedness that exceeds a certain threshold amount; |
• | failure by us to pay final judgments that exceed a certain threshold amount; and |
• | bankruptcy or other insolvency events involving us. |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in millions) | ||||||||||||||||
Predecessor income tax expense | $ | — | $ | — | $ | — | $ | 19.4 | ||||||||
ENLC income tax expense | 0.2 | 17.3 | 21.1 | 40.1 | ||||||||||||
Total income tax expense | $ | 0.2 | $ | 17.3 | $ | 21.1 | $ | 59.5 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in millions) | ||||||||||||||||
Tax computed at statutory federal rate (35%) | $ | (67.6 | ) | $ | 16.1 | $ | (49.5 | ) | $ | 36.5 | ||||||
State income taxes, net of federal tax benefit | (4.8 | ) | 1.2 | (3.5 | ) | 2.6 | ||||||||||
Predecessor income tax expense | — | — | — | 19.4 | ||||||||||||
Income taxes from partnership | 0.6 | — | 1.7 | 0.8 | ||||||||||||
Non-deductible expense related to asset impairment | 72.3 | — | 72.3 | — | ||||||||||||
Other | (0.3 | ) | — | 0.1 | 0.2 | |||||||||||
Total income tax expense | $ | 0.2 | $ | 17.3 | $ | 21.1 | $ | 59.5 |
|
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 | |||
Second Quarter of 2015 (2) | $ | 0.385 | August 13, 2015 | |||
Third Quarter of 2015 | $ | 0.39 | November 12, 2015 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014* | ||||||||||||
Income allocation for incentive distributions | $ | 13.6 | $ | 6.3 | $ | 33.7 | $ | 13.6 | |||||||
Unit-based compensation attributable to ENLC’s restricted units | (3.7 | ) | (3.1 | ) | (14.6 | ) | (6.8 | ) | |||||||
General Partner share of net income (loss) | (3.6 | ) | 0.3 | (3.3 | ) | 0.7 | |||||||||
General Partner interest in drop down transactions | — | 39.4 | 34.4 | 89.3 | |||||||||||
General Partner interest in net income | $ | 6.3 | $ | 42.9 | $ | 50.2 | $ | 96.8 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014* | |||||||||||||
EnLink Midstream, LLC interest in net income (loss) | $ | (193.4 | ) | $ | 28.8 | $ | (162.6 | ) | $ | 64.4 | ||||||
Distributed earnings allocated to: | ||||||||||||||||
Common units (1) (2) | $ | 41.9 | $ | 37.7 | $ | 123.2 | $ | 88.3 | ||||||||
Unvested restricted units (1) | 0.3 | 0.2 | 0.9 | 0.6 | ||||||||||||
Total distributed earnings | $ | 42.2 | $ | 37.9 | $ | 124.1 | $ | 88.9 | ||||||||
Undistributed loss allocated to: | ||||||||||||||||
Common units | $ | (233.9 | ) | $ | (9.1 | ) | $ | (284.7 | ) | $ | (24.3 | ) | ||||
Unvested restricted units | (1.7 | ) | — | (2.0 | ) | (0.2 | ) | |||||||||
Total undistributed loss | $ | (235.6 | ) | $ | (9.1 | ) | $ | (286.7 | ) | $ | (24.5 | ) | ||||
Net income (loss) allocated to: | ||||||||||||||||
Common units | $ | (192.0 | ) | $ | 28.6 | $ | (161.5 | ) | $ | 64.0 | ||||||
Unvested restricted units | (1.4 | ) | 0.2 | (1.1 | ) | 0.4 | ||||||||||
Total net income (loss) | $ | (193.4 | ) | $ | 28.8 | $ | (162.6 | ) | $ | 64.4 | ||||||
Total basic and diluted net income (loss) per unit: | ||||||||||||||||
Basic | $ | (1.18 | ) | $ | 0.18 | $ | (0.99 | ) | $ | 0.39 | ||||||
Diluted | $ | (1.18 | ) | $ | 0.17 | $ | (0.99 | ) | $ | 0.39 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2015 | 2014 | 2015 | 2014* | |||||||||
Basic and diluted earnings per unit: | ||||||||||||
Weighted average common units outstanding | 164.2 | 164.0 | 164.2 | 164.0 | ||||||||
Diluted weighted average units outstanding: | ||||||||||||
Weighted average basic common units outstanding | 164.2 | 164.0 | 164.2 | 164.0 | ||||||||
Dilutive effect of restricted units issued | — | 0.4 | — | 0.3 | ||||||||
Total weighted average diluted common units outstanding | 164.2 | 164.4 | 164.2 | 164.3 |
|
September 30, 2015 | September 30, 2014 | ||||||
(in millions) | |||||||
Beginning asset retirement obligation | $ | 20.6 | $ | 8.1 | |||
Revisions to existing liabilities | (4.0 | ) | 3.2 | ||||
Liabilities acquired | — | 0.5 | |||||
Accretion | 0.4 | 0.4 | |||||
Liabilities settled | (3.2 | ) | — | ||||
Ending asset retirement obligation | $ | 13.8 | $ | 12.2 |
|
Gulf Coast Fractionators | Howard Energy Partners | Total | |||||||||
Three months ended | |||||||||||
September 30, 2015 | |||||||||||
Contributions | $ | — | $ | 8.1 | $ | 8.1 | |||||
Distributions | $ | 3.8 | $ | 8.4 | $ | 12.2 | |||||
Equity in income | $ | 3.4 | $ | 3.0 | $ | 6.4 | |||||
September 30, 2014 (1) | |||||||||||
Contributions | $ | — | $ | — | $ | — | |||||
Distributions | $ | 5.2 | $ | 3.0 | $ | 8.2 | |||||
Equity in income | $ | 5.2 | $ | 0.4 | $ | 5.6 | |||||
Nine months ended | |||||||||||
September 30, 2015 | |||||||||||
Contributions | $ | — | $ | 8.1 | $ | 8.1 | |||||
Distributions | $ | 10.7 | $ | 20.7 | $ | 31.4 | |||||
Equity in income | $ | 9.7 | $ | 6.4 | $ | 16.1 | |||||
September 30, 2014 (1) | |||||||||||
Contributions | $ | — | $ | 5.7 | $ | 5.7 | |||||
Distributions | $ | 5.2 | $ | 8.7 | $ | 13.9 | |||||
Equity in income | $ | 13.2 | $ | 1.1 | $ | 14.3 |
September 30, 2015 | December 31, 2014 | ||||||
Gulf Coast Fractionators | $ | 53.0 | $ | 54.1 | |||
Howard Energy Partners | 210.5 | 216.7 | |||||
Total investments in unconsolidated affiliates | $ | 263.5 | $ | 270.8 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 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 | 6.3 | 5.0 | 24.9 | 11.0 | |||||||||||
Cost of unit-based compensation charged to operating expense | 1.0 | 0.8 | 4.0 | 1.8 | |||||||||||
Total amount charged to income | $ | 7.3 | $ | 5.8 | $ | 28.9 | $ | 15.6 | |||||||
Interest of non-controlling partners in unit-based compensation | $ | 2.6 | $ | 2.5 | $ | 11.4 | $ | 5.4 | |||||||
Amount of related income tax benefit recognized in income | $ | 1.8 | $ | 1.3 | $ | 6.5 | $ | 3.9 |
(1) | Unit-based compensation expense was treated as a contribution by the Predecessor in the Consolidated Statement of Changes in Members' Equity in 2014. |
Nine Months Ended September 30, 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 | 581,047 | 26.82 | ||||||
Vested* | (264,651 | ) | 28.81 | |||||
Forfeited | (68,913 | ) | 30.92 | |||||
Non-vested, end of period | 1,269,674 | $ | 29.75 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 20.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.1 | $ | 1.2 | $ | 7.2 | $ | 1.2 | ||||||||
Fair value of units vested | $ | 0.1 | $ | 1.2 | $ | 7.6 | $ | 1.2 |
EnLink Midstream Partners, LP Performance Units: | 2015 | |||
Beginning TSR Price | $ | 27.68 | ||
Risk-free interest rate | 0.99 | % | ||
Volatility factor | 33.01 | % | ||
Distribution yield | 5.66 | % |
Nine Months Ended September 30, 2015 | ||||||||
EnLink Midstream Partners, LP Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | — | $ | — | |||||
Granted | 118,126 | 35.41 | ||||||
Vested | — | — | ||||||
Non-vested, end of period | 118,126 | $ | 35.41 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 1.9 |
Nine Months Ended September 30, 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 | 493,582 | 31.58 | ||||||
Vested* | (261,144 | ) | 35.79 | |||||
Forfeited | (59,203 | ) | 35.99 | |||||
Non-vested, end of period | 1,159,707 | $ | 35.04 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 21.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
EnLink Midstream, LLC Restricted Incentive Units: | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.1 | $ | 2.4 | $ | 8.9 | $ | 2.4 | ||||||||
Fair value of units vested | $ | 0.1 | $ | 2.2 | $ | 9.3 | $ | 2.2 |
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 | % |
Nine Months Ended September 30, 2015 | ||||||||
EnLink Midstream, LLC Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | — | $ | — | |||||
Granted | 105,080 | 40.5 | ||||||
Vested | — | — | ||||||
Non-vested, end of period | 105,080 | $ | 40.5 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 1.9 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2015 | 2015 | |||||||
Settlement gains on derivatives | $ | — | $ | 3.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014* | ||||||||||||
Change in fair value of derivatives | $ | (0.2 | ) | $ | 1.8 | $ | (6.4 | ) | $ | (0.2 | ) | ||||
Realized gain (loss) on derivatives | 5.4 | (0.8 | ) | 13.0 | (1.7 | ) | |||||||||
Gain (loss) on derivative activity | $ | 5.2 | $ | 1.0 | $ | 6.6 | $ | (1.9 | ) |
September 30, 2015 | December 31, 2014 | ||||||
Fair value of derivative assets — current | $ | 15.5 | $ | 16.7 | |||
Fair value of derivative assets — long term | 2.9 | 10.0 | |||||
Fair value of derivative liabilities — current | (3.4 | ) | (3.0 | ) | |||
Fair value of derivative liabilities — long term | (0.5 | ) | (2.0 | ) | |||
Net fair value of derivatives | $ | 14.5 | $ | 21.7 |
September 30, 2015 | |||||||||||
Commodity | Instruments | Unit | Volume | Fair Value | |||||||
(In millions) | |||||||||||
NGL (short contracts) | Swaps | Gallons | (53.3 | ) | $ | 16.4 | |||||
NGL (long contracts) | Swaps | Gallons | 35.8 | (2.4 | ) | ||||||
Natural Gas (short contracts) | Swaps | MMBtu | (3.1 | ) | 1.3 | ||||||
Natural Gas (long contracts) | Swaps | MMBtu | 1.3 | (0.9 | ) | ||||||
Condensate (long contracts) | Swaps | MBbls | 0.1 | 0.1 | |||||||
Total fair value of derivatives | $ | 14.5 |
Maturity Periods | |||||||||||||||
Less than one year | One to two years | More than two years | Total fair value | ||||||||||||
September 30, 2015 | $ | 12.1 | $ | 2.4 | $ | — | $ | 14.5 |
|
September 30, 2015 Level 2 | December 31, 2014 Level 2 | ||||||
Commodity Swaps* | $ | 14.5 | $ | 21.7 | |||
Total | $ | 14.5 | $ | 21.7 |
September 30, 2015 | December 31, 2014 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt | $ | 2,851.5 | $ | 2,663.2 | $ | 2,022.5 | $ | 2,026.1 | |||||||
Obligations under capital leases | $ | 17.7 | $ | 17.0 | $ | 20.3 | $ | 19.8 |
|
|
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||||||
Product sales | $ | 106.9 | $ | 399.0 | $ | 3.9 | $ | 353.7 | $ | — | $ | 863.5 | |||||||||||
Product sales-affiliates | 35.3 | 17.6 | 4.6 | 0.4 | (17.6 | ) | 40.3 | ||||||||||||||||
Midstream services | 20.3 | 63.3 | 9.4 | 18.3 | — | 111.3 | |||||||||||||||||
Midstream services-affiliates | 111.6 | 5.1 | 34.5 | 3.6 | (4.5 | ) | 150.3 | ||||||||||||||||
Cost of sales | (124.5 | ) | (415.2 | ) | (9.4 | ) | (334.8 | ) | 22.1 | (861.8 | ) | ||||||||||||
Operating expenses | (44.3 | ) | (27.2 | ) | (7.2 | ) | (26.3 | ) | — | (105.0 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 5.2 | 5.2 | |||||||||||||||||
Segment profit | $ | 105.3 | $ | 42.6 | $ | 35.8 | $ | 14.9 | $ | 5.2 | $ | 203.8 | |||||||||||
Depreciation and amortization | $ | (44.4 | ) | $ | (27.4 | ) | $ | (11.9 | ) | $ | (12.9 | ) | $ | (1.8 | ) | $ | (98.4 | ) | |||||
Impairments | $ | — | $ | (576.1 | ) | $ | — | $ | (223.1 | ) | $ | — | $ | (799.2 | ) | ||||||||
Goodwill | $ | 1,186.8 | $ | 210.7 | $ | 190.3 | $ | 142.1 | $ | 1,426.9 | $ | 3,156.8 | |||||||||||
Capital expenditures | $ | 29.0 | $ | 13.5 | $ | 19.7 | $ | 38.6 | $ | 3.9 | $ | 104.7 | |||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||||||
Product sales | $ | 52.5 | $ | 426.5 | $ | — | $ | 100.1 | $ | — | $ | 579.1 | |||||||||||
Product sales-affiliates | 19.2 | 36.4 | — | — | (17.8 | ) | 37.8 | ||||||||||||||||
Midstream services | 19.1 | 38.9 | — | 10.6 | — | 68.6 | |||||||||||||||||
Midstream services-affiliates | 122.7 | 2.0 | 45.8 | 2.4 | (2.0 | ) | 170.9 | ||||||||||||||||
Cost of sales | (64.2 | ) | (462.6 | ) | — | (90.2 | ) | 19.8 | (597.2 | ) | |||||||||||||
Operating expenses | (37.9 | ) | (20.3 | ) | (7.0 | ) | (14.6 | ) | — | (79.8 | ) | ||||||||||||
Gain on litigation settlement | — | 6.1 | — | — | — | 6.1 | |||||||||||||||||
Gain on derivative activity | — | — | — | — | 1.0 | 1.0 | |||||||||||||||||
Segment profit | $ | 111.4 | $ | 27.0 | $ | 38.8 | $ | 8.3 | $ | 1.0 | $ | 186.5 | |||||||||||
Depreciation and amortization | $ | (31.6 | ) | $ | (19.1 | ) | $ | (11.8 | ) | $ | (11.7 | ) | $ | (0.9 | ) | $ | (75.1 | ) |
Goodwill | $ | 1,168.2 | $ | 786.8 | $ | 190.3 | $ | 112.5 | $ | 1,436.8 | $ | 3,694.6 | |||||||||||
Capital expenditures | $ | 79.7 | $ | 79.1 | $ | 2.5 | $ | 43.8 | $ | 3.9 | $ | 209.0 | |||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||
Product sales | $ | 237.3 | $ | 1,173.6 | $ | 2.4 | $ | 1,075.5 | $ | — | $ | 2,488.8 | |||||||||||
Product sales-affiliates | 91.5 | 37.4 | 10.2 | 0.8 | (50.3 | ) | 89.6 | ||||||||||||||||
Midstream services | 76.2 | 184.5 | 29.9 | 60.7 | — | 351.3 | |||||||||||||||||
Midstream services-affiliates | 342.5 | 14.3 | 94.7 | 10.6 | (12.8 | ) | 449.3 | ||||||||||||||||
Cost of sales | (305.1 | ) | (1,210.4 | ) | (14.6 | ) | (1,020.4 | ) | 63.1 | (2,487.4 | ) | ||||||||||||
Operating expenses | (136.9 | ) | (78.7 | ) | (23.3 | ) | (73.7 | ) | — | (312.6 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 6.6 | 6.6 | |||||||||||||||||
Segment profit | $ | 305.5 | $ | 120.7 | $ | 99.3 | $ | 53.5 | $ | 6.6 | $ | 585.6 | |||||||||||
Depreciation and amortization | $ | (123.6 | ) | $ | (81.8 | ) | $ | (37.2 | ) | $ | (41.5 | ) | $ | (5.0 | ) | $ | (289.1 | ) | |||||
Impairments | $ | — | $ | (576.1 | ) | $ | — | $ | (223.1 | ) | $ | — | $ | (799.2 | ) | ||||||||
Goodwill | $ | 1,186.8 | $ | 210.7 | $ | 190.3 | $ | 142.1 | $ | 1,426.9 | $ | 3,156.8 | |||||||||||
Capital expenditures | $ | 183.4 | $ | 43.4 | $ | 37.2 | $ | 170.6 | $ | 10.6 | $ | 445.2 | |||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||||
Product sales | $ | 167.0 | $ | 1,075.6 | $ | 11.5 | $ | 226.3 | $ | — | $ | 1,480.4 | |||||||||||
Product sales-affiliates | 331.1 | 38.7 | 147.9 | — | (43.5 | ) | 474.2 | ||||||||||||||||
Midstream services | 38.6 | 87.3 | — | 28.9 | — | 154.8 | |||||||||||||||||
Midstream services-affiliates | 289.7 | 2.0 | 108.1 | 2.4 | (2.0 | ) | 400.2 | ||||||||||||||||
Cost of sales | (397.6 | ) | (1,104.2 | ) | (133.9 | ) | (207.8 | ) | 45.5 | (1,798.0 | ) | ||||||||||||
Operating expenses | (108.2 | ) | (41.9 | ) | (21.0 | ) | (29.3 | ) | — | (200.4 | ) | ||||||||||||
Gain on litigation settlement | — | 6.1 | — | — | — | 6.1 | |||||||||||||||||
Loss on derivative activity | — | — | — | — | (1.9 | ) | (1.9 | ) | |||||||||||||||
Segment profit | $ | 320.6 | $ | 63.6 | $ | 112.6 | $ | 20.5 | $ | (1.9 | ) | $ | 515.4 | ||||||||||
Depreciation and amortization | $ | (91.7 | ) | $ | (43.4 | ) | $ | (37.6 | ) | $ | (24.4 | ) | $ | (1.5 | ) | $ | (198.6 | ) | |||||
Goodwill | $ | 1,168.2 | $ | 786.8 | $ | 190.3 | $ | 112.5 | $ | 1,436.8 | $ | 3,694.6 | |||||||||||
Capital expenditures | $ | 180.2 | $ | 222.4 | $ | 10.5 | $ | 91.3 | $ | 12.6 | $ | 517.0 |
September 30, 2015 | December 31, 2014 | ||||||
Segment Identifiable Assets: | (In millions) | ||||||
Texas | $ | 3,995.0 | $ | 3,303.0 | |||
Louisiana | 2,562.3 | 3,316.5 | |||||
Oklahoma | 895.7 | 892.8 | |||||
Crude and Condensate | 980.8 | 871.9 | |||||
Corporate | 1,840.1 | 1,822.5 | |||||
Total identifiable assets | $ | 10,273.9 | $ | 10,206.7 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Segment profits | $ | 203.8 | $ | 186.5 | $ | 585.6 | $ | 515.4 | |||||||
General and administrative expenses | (34.8 | ) | (24.4 | ) | (105.6 | ) | (66.9 | ) | |||||||
Loss on disposition of assets | (3.2 | ) | — | (3.2 | ) | — | |||||||||
Depreciation and amortization | (98.4 | ) | (75.1 | ) | (289.1 | ) | (198.6 | ) | |||||||
Impairments | (799.2 | ) | — | (799.2 | ) | — | |||||||||
Operating income (loss) | $ | (731.8 | ) | $ | 87.0 | $ | (611.5 | ) | $ | 249.9 |
|
Nine Months Ended September 30, | ||||
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 |
|
Nine Months Ended September 30, | ||||
2015 | ||||
(In 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 |
|
September 30, 2015 | December 31, 2014 | ||||||
(in millions) | |||||||
Accrued interest | $ | 54.7 | $ | 16.9 | |||
Accrued wages and benefits, including taxes | 29.9 | 19.7 | |||||
Accrued ad valorem taxes | 30.2 | 23.2 | |||||
Capital expenditure accruals | 18.4 | 22.6 | |||||
Suspense producer payments | 17.5 | — | |||||
Other | 54.8 | 69.9 | |||||
Other current liabilities | $ | 205.5 | $ | 152.3 |
|
|
• | Product sales - Product sales represent the sale of natural gas, NGLs, crude oil and condensate where the product is purchased and resold in connection with providing its midstream services as outlined above. |
• | Midstream services - Midstream services represents all other revenue generated as a result of performing the Partnership's midstream services outlined above. |
|
Nine Months Ended September 30, 2015 | ||||||||||||
Company Historical | VEX | Combined | ||||||||||
(in millions) | ||||||||||||
Revenues | $ | 3,381.4 | $ | 4.2 | $ | 3,385.6 | ||||||
Net income (loss) | $ | (688.7 | ) | $ | 0.7 | $ | (688.0 | ) | ||||
Net loss attributable to non-controlling interest | $ | (526.1 | ) | $ | — | $ | (526.1 | ) | ||||
Net income (loss) attributable to EnLink Midstream, LLC | $ | (162.6 | ) | $ | 0.7 | $ | (161.9 | ) | ||||
EnLink Midstream, LLC interest in net loss | $ | (162.6 | ) | $ | — | $ | (162.6 | ) |
Nine Months Ended September 30, 2014 | ||||||||||||
Company Historical | VEX | Combined | ||||||||||
(in millions) | ||||||||||||
Revenues | $ | 2,505.3 | $ | 2.4 | $ | 2,507.7 | ||||||
Net income (loss) | $ | 180.4 | $ | (5.3 | ) | $ | 175.1 | |||||
Net income attributable to non-controlling interest | $ | 80.5 | $ | — | $ | 80.5 | ||||||
Net income attributable to EnLink Midstream, LLC | $ | 99.9 | $ | (5.3 | ) | $ | 94.6 | |||||
EnLink Midstream, LLC interest in net income (1) | $ | 64.4 | $ | — | $ | 64.4 |
(1) | Represents net income for the period from February 28, 2014 through September 30, 2014. |
Three Months Ended September 30, 2014 | ||||||||||||
Company Historical | VEX | Combined | ||||||||||
(in millions) | ||||||||||||
Revenues | $ | 855.0 | $ | 2.4 | $ | 857.4 | ||||||
Net income (loss) | $ | 66.5 | $ | (2.3 | ) | $ | 64.2 | |||||
Net income attributable to non-controlling interest | $ | 37.7 | $ | — | $ | 37.7 | ||||||
Net income (loss) attributable to EnLink Midstream, LLC | $ | 28.8 | $ | (2.3 | ) | $ | 26.5 | |||||
EnLink Midstream, LLC interest in net income | $ | 28.8 | $ | — | $ | 28.8 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2014 | 2015 | 2014 | ||||||||||
(in millions) | ||||||||||||
Pro forma total revenues (1) | $ | 1,396.4 | $ | 3,507.8 | $ | 4,233.4 | ||||||
Pro forma net income (loss) | $ | 52.9 | $ | (693.2 | ) | $ | 126.9 | |||||
Pro forma net income (loss) attributable to EnLink Midstream, LLC | $ | 26.0 | $ | (163.7 | ) | $ | 68.6 | |||||
Pro forma net income (loss) per common unit: | ||||||||||||
Basic | $ | 0.17 | $ | (1.00 | ) | $ | 0.45 | |||||
Diluted | $ | 0.17 | $ | (1.00 | ) | $ | 0.45 |
(1) | On January 1, 2014, Midstream Holdings entered into gathering and processing agreements with Devon, which are described in Note 5. |
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) | $ | 107.4 | ||
Property, plant and equipment | 29.8 | |||
Intangibles | 43.2 | |||
Goodwill | 29.6 | |||
Liabilities assumed: | ||||
Current liabilities | (97.9 | ) | ||
Deferred tax liability | (4.0 | ) | ||
Total identifiable net assets | $ | 108.1 |
Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Current assets (including $1.4 million in cash) | $ | 20.8 | ||
Property, plant and equipment | 302.1 | |||
Intangibles | 281.0 | |||
Goodwill | 18.6 | |||
Liabilities assumed: | ||||
Current liabilities | (22.3 | ) | ||
Total identifiable net assets | $ | 600.2 |
|
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||
Balance, beginning of period | $ | 1,168.2 | $ | 786.8 | $ | 190.3 | $ | 112.5 | $ | 1,426.9 | $ | 3,684.7 | |||||||||||
Acquisitions (1) | 18.6 | — | — | 29.6 | — | 48.2 | |||||||||||||||||
Impairment | — | (576.1 | ) | — | — | — | (576.1 | ) | |||||||||||||||
Balance, end of period | $ | 1,186.8 | $ | 210.7 | $ | 190.3 | $ | 142.1 | $ | 1,426.9 | $ | 3,156.8 |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Nine Months Ended September 30, 2015 | ||||||||||||
Customer relationships, beginning of period | $ | 569.5 | $ | (36.5 | ) | $ | 533.0 | |||||
Acquisitions | 337.2 | — | 337.2 | |||||||||
Amortization expense | — | (44.3 | ) | (44.3 | ) | |||||||
Impairment | (261.0 | ) | 37.9 | (223.1 | ) | |||||||
Customer relationships, end of period | $ | 645.7 | $ | (42.9 | ) | $ | 602.8 |
2015 (remaining) | $ | 10.3 | |
2016 | 41.2 | ||
2017 | 41.2 | ||
2018 | 41.2 | ||
2019 | 41.2 | ||
Thereafter | 427.7 | ||
Total | $ | 602.8 |
|
Nine Months Ended September 30, 2014 | |||
Continuing Operations: | |||
Revenues - affiliates | $ | (436.4 | ) |
Operating cost and expenses - affiliates | 340.0 | ||
Net affiliate transactions | (96.4 | ) | |
Capital expenditures | 16.2 | ||
Other third-party transactions, net | 53.0 | ||
Net third-party transactions | 69.2 | ||
Net cash distributions to Devon - continuing operations | (27.2 | ) | |
Non-cash distribution of net assets to Devon | (23.5 | ) | |
Total net distributions per equity | $ | (50.7 | ) |
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 | $ | (95.0 | ) |
|
September 30, 2015 | December 31, 2014 | ||||||
Partnership credit facility (due 2020), interest based on Prime and/or LIBOR plus an applicable margin, interest rate at September 30, 2015 and December 31, 2014 was 1.5% and 1.9% respectively | $ | 175.0 | $ | 237.0 | |||
Company credit facility (due 2019) | — | — | |||||
The Partnership's senior unsecured notes (due 2019), net of discount of $0.4 million at September 30, 2015 and $0.5 million at December 31, 2014, which bear interest at the rate of 2.70% | 399.6 | 399.5 | |||||
The Partnership's senior unsecured notes (due 2022), including a premium of $19.7 million at September 30, 2015 and $21.9 million at December 31, 2014, which bear interest at the rate of 7.125% | 182.2 | 184.4 | |||||
The Partnership's senior unsecured notes (due 2024), net of premium of $2.9 million at September 30, 2015 and $3.2 million at December 31, 2014, which bear interest at the rate of 4.40% | 552.9 | 553.2 | |||||
Partnership's Senior unsecured notes (due 2025), net of discount of $1.2 million at September 30, 2015, which bear interest at the rate of 4.15% | 748.8 | — | |||||
The Partnership's senior unsecured notes (due 2044), net of discount of $0.3 million at September 30, 2015 and December 31, 2014, 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 $6.9 million at September 30, 2015 and $1.7 million at December 31, 2014, which bear interest at the rate of 5.05% | 443.1 | 298.3 | |||||
Other debt | 0.2 | 0.4 | |||||
Debt classified as long-term | $ | 2,851.5 | $ | 2,022.5 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in millions) | ||||||||||||||||
Predecessor income tax expense | $ | — | $ | — | $ | — | $ | 19.4 | ||||||||
ENLC income tax expense | 0.2 | 17.3 | 21.1 | 40.1 | ||||||||||||
Total income tax expense | $ | 0.2 | $ | 17.3 | $ | 21.1 | $ | 59.5 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in millions) | ||||||||||||||||
Tax computed at statutory federal rate (35%) | $ | (67.6 | ) | $ | 16.1 | $ | (49.5 | ) | $ | 36.5 | ||||||
State income taxes, net of federal tax benefit | (4.8 | ) | 1.2 | (3.5 | ) | 2.6 | ||||||||||
Predecessor income tax expense | — | — | — | 19.4 | ||||||||||||
Income taxes from partnership | 0.6 | — | 1.7 | 0.8 | ||||||||||||
Non-deductible expense related to asset impairment | 72.3 | — | 72.3 | — | ||||||||||||
Other | (0.3 | ) | — | 0.1 | 0.2 | |||||||||||
Total income tax expense | $ | 0.2 | $ | 17.3 | $ | 21.1 | $ | 59.5 |
|
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 | |||
Second Quarter of 2015 (2) | $ | 0.385 | August 13, 2015 | |||
Third Quarter of 2015 | $ | 0.39 | November 12, 2015 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014* | ||||||||||||
Income allocation for incentive distributions | $ | 13.6 | $ | 6.3 | $ | 33.7 | $ | 13.6 | |||||||
Unit-based compensation attributable to ENLC’s restricted units | (3.7 | ) | (3.1 | ) | (14.6 | ) | (6.8 | ) | |||||||
General Partner share of net income (loss) | (3.6 | ) | 0.3 | (3.3 | ) | 0.7 | |||||||||
General Partner interest in drop down transactions | — | 39.4 | 34.4 | 89.3 | |||||||||||
General Partner interest in net income | $ | 6.3 | $ | 42.9 | $ | 50.2 | $ | 96.8 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014* | |||||||||||||
EnLink Midstream, LLC interest in net income (loss) | $ | (193.4 | ) | $ | 28.8 | $ | (162.6 | ) | $ | 64.4 | ||||||
Distributed earnings allocated to: | ||||||||||||||||
Common units (1) (2) | $ | 41.9 | $ | 37.7 | $ | 123.2 | $ | 88.3 | ||||||||
Unvested restricted units (1) | 0.3 | 0.2 | 0.9 | 0.6 | ||||||||||||
Total distributed earnings | $ | 42.2 | $ | 37.9 | $ | 124.1 | $ | 88.9 | ||||||||
Undistributed loss allocated to: | ||||||||||||||||
Common units | $ | (233.9 | ) | $ | (9.1 | ) | $ | (284.7 | ) | $ | (24.3 | ) | ||||
Unvested restricted units | (1.7 | ) | — | (2.0 | ) | (0.2 | ) | |||||||||
Total undistributed loss | $ | (235.6 | ) | $ | (9.1 | ) | $ | (286.7 | ) | $ | (24.5 | ) | ||||
Net income (loss) allocated to: | ||||||||||||||||
Common units | $ | (192.0 | ) | $ | 28.6 | $ | (161.5 | ) | $ | 64.0 | ||||||
Unvested restricted units | (1.4 | ) | 0.2 | (1.1 | ) | 0.4 | ||||||||||
Total net income (loss) | $ | (193.4 | ) | $ | 28.8 | $ | (162.6 | ) | $ | 64.4 | ||||||
Total basic and diluted net income (loss) per unit: | ||||||||||||||||
Basic | $ | (1.18 | ) | $ | 0.18 | $ | (0.99 | ) | $ | 0.39 | ||||||
Diluted | $ | (1.18 | ) | $ | 0.17 | $ | (0.99 | ) | $ | 0.39 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2015 | 2014 | 2015 | 2014* | |||||||||
Basic and diluted earnings per unit: | ||||||||||||
Weighted average common units outstanding | 164.2 | 164.0 | 164.2 | 164.0 | ||||||||
Diluted weighted average units outstanding: | ||||||||||||
Weighted average basic common units outstanding | 164.2 | 164.0 | 164.2 | 164.0 | ||||||||
Dilutive effect of restricted units issued | — | 0.4 | — | 0.3 | ||||||||
Total weighted average diluted common units outstanding | 164.2 | 164.4 | 164.2 | 164.3 |
|
September 30, 2015 | September 30, 2014 | ||||||
(in millions) | |||||||
Beginning asset retirement obligation | $ | 20.6 | $ | 8.1 | |||
Revisions to existing liabilities | (4.0 | ) | 3.2 | ||||
Liabilities acquired | — | 0.5 | |||||
Accretion | 0.4 | 0.4 | |||||
Liabilities settled | (3.2 | ) | — | ||||
Ending asset retirement obligation | $ | 13.8 | $ | 12.2 |
|
Gulf Coast Fractionators | Howard Energy Partners | Total | |||||||||
Three months ended | |||||||||||
September 30, 2015 | |||||||||||
Contributions | $ | — | $ | 8.1 | $ | 8.1 | |||||
Distributions | $ | 3.8 | $ | 8.4 | $ | 12.2 | |||||
Equity in income | $ | 3.4 | $ | 3.0 | $ | 6.4 | |||||
September 30, 2014 (1) | |||||||||||
Contributions | $ | — | $ | — | $ | — | |||||
Distributions | $ | 5.2 | $ | 3.0 | $ | 8.2 | |||||
Equity in income | $ | 5.2 | $ | 0.4 | $ | 5.6 | |||||
Nine months ended | |||||||||||
September 30, 2015 | |||||||||||
Contributions | $ | — | $ | 8.1 | $ | 8.1 | |||||
Distributions | $ | 10.7 | $ | 20.7 | $ | 31.4 | |||||
Equity in income | $ | 9.7 | $ | 6.4 | $ | 16.1 | |||||
September 30, 2014 (1) | |||||||||||
Contributions | $ | — | $ | 5.7 | $ | 5.7 | |||||
Distributions | $ | 5.2 | $ | 8.7 | $ | 13.9 | |||||
Equity in income | $ | 13.2 | $ | 1.1 | $ | 14.3 |
September 30, 2015 | December 31, 2014 | ||||||
Gulf Coast Fractionators | $ | 53.0 | $ | 54.1 | |||
Howard Energy Partners | 210.5 | 216.7 | |||||
Total investments in unconsolidated affiliates | $ | 263.5 | $ | 270.8 |
|
EnLink Midstream Partners, LP Performance Units: | 2015 | |||
Beginning TSR Price | $ | 27.68 | ||
Risk-free interest rate | 0.99 | % | ||
Volatility factor | 33.01 | % | ||
Distribution yield | 5.66 | % |
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 | % |
Nine Months Ended September 30, 2015 | ||||||||
EnLink Midstream Partners, LP Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | — | $ | — | |||||
Granted | 118,126 | 35.41 | ||||||
Vested | — | — | ||||||
Non-vested, end of period | 118,126 | $ | 35.41 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 1.9 |
Nine Months Ended September 30, 2015 | ||||||||
EnLink Midstream, LLC Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | — | $ | — | |||||
Granted | 105,080 | 40.5 | ||||||
Vested | — | — | ||||||
Non-vested, end of period | 105,080 | $ | 40.5 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 1.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 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 | 6.3 | 5.0 | 24.9 | 11.0 | |||||||||||
Cost of unit-based compensation charged to operating expense | 1.0 | 0.8 | 4.0 | 1.8 | |||||||||||
Total amount charged to income | $ | 7.3 | $ | 5.8 | $ | 28.9 | $ | 15.6 | |||||||
Interest of non-controlling partners in unit-based compensation | $ | 2.6 | $ | 2.5 | $ | 11.4 | $ | 5.4 | |||||||
Amount of related income tax benefit recognized in income | $ | 1.8 | $ | 1.3 | $ | 6.5 | $ | 3.9 |
(1) | Unit-based compensation expense was treated as a contribution by the Predecessor in the Consolidated Statement of Changes in Members' Equity in 2014. |
Nine Months Ended September 30, 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 | 581,047 | 26.82 | ||||||
Vested* | (264,651 | ) | 28.81 | |||||
Forfeited | (68,913 | ) | 30.92 | |||||
Non-vested, end of period | 1,269,674 | $ | 29.75 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 20.0 |
Nine Months Ended September 30, 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 | 493,582 | 31.58 | ||||||
Vested* | (261,144 | ) | 35.79 | |||||
Forfeited | (59,203 | ) | 35.99 | |||||
Non-vested, end of period | 1,159,707 | $ | 35.04 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 21.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
EnLink Midstream, LLC Restricted Incentive Units: | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.1 | $ | 2.4 | $ | 8.9 | $ | 2.4 | ||||||||
Fair value of units vested | $ | 0.1 | $ | 2.2 | $ | 9.3 | $ | 2.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.1 | $ | 1.2 | $ | 7.2 | $ | 1.2 | ||||||||
Fair value of units vested | $ | 0.1 | $ | 1.2 | $ | 7.6 | $ | 1.2 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2015 | 2015 | |||||||
Settlement gains on derivatives | $ | — | $ | 3.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014* | ||||||||||||
Change in fair value of derivatives | $ | (0.2 | ) | $ | 1.8 | $ | (6.4 | ) | $ | (0.2 | ) | ||||
Realized gain (loss) on derivatives | 5.4 | (0.8 | ) | 13.0 | (1.7 | ) | |||||||||
Gain (loss) on derivative activity | $ | 5.2 | $ | 1.0 | $ | 6.6 | $ | (1.9 | ) |
September 30, 2015 | December 31, 2014 | ||||||
Fair value of derivative assets — current | $ | 15.5 | $ | 16.7 | |||
Fair value of derivative assets — long term | 2.9 | 10.0 | |||||
Fair value of derivative liabilities — current | (3.4 | ) | (3.0 | ) | |||
Fair value of derivative liabilities — long term | (0.5 | ) | (2.0 | ) | |||
Net fair value of derivatives | $ | 14.5 | $ | 21.7 |
September 30, 2015 | |||||||||||
Commodity | Instruments | Unit | Volume | Fair Value | |||||||
(In millions) | |||||||||||
NGL (short contracts) | Swaps | Gallons | (53.3 | ) | $ | 16.4 | |||||
NGL (long contracts) | Swaps | Gallons | 35.8 | (2.4 | ) | ||||||
Natural Gas (short contracts) | Swaps | MMBtu | (3.1 | ) | 1.3 | ||||||
Natural Gas (long contracts) | Swaps | MMBtu | 1.3 | (0.9 | ) | ||||||
Condensate (long contracts) | Swaps | MBbls | 0.1 | 0.1 | |||||||
Total fair value of derivatives | $ | 14.5 |
Maturity Periods | |||||||||||||||
Less than one year | One to two years | More than two years | Total fair value | ||||||||||||
September 30, 2015 | $ | 12.1 | $ | 2.4 | $ | — | $ | 14.5 |
|
September 30, 2015 Level 2 | December 31, 2014 Level 2 | ||||||
Commodity Swaps* | $ | 14.5 | $ | 21.7 | |||
Total | $ | 14.5 | $ | 21.7 |
September 30, 2015 | December 31, 2014 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt | $ | 2,851.5 | $ | 2,663.2 | $ | 2,022.5 | $ | 2,026.1 | |||||||
Obligations under capital leases | $ | 17.7 | $ | 17.0 | $ | 20.3 | $ | 19.8 |
|
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||||||
Product sales | $ | 106.9 | $ | 399.0 | $ | 3.9 | $ | 353.7 | $ | — | $ | 863.5 | |||||||||||
Product sales-affiliates | 35.3 | 17.6 | 4.6 | 0.4 | (17.6 | ) | 40.3 | ||||||||||||||||
Midstream services | 20.3 | 63.3 | 9.4 | 18.3 | — | 111.3 | |||||||||||||||||
Midstream services-affiliates | 111.6 | 5.1 | 34.5 | 3.6 | (4.5 | ) | 150.3 | ||||||||||||||||
Cost of sales | (124.5 | ) | (415.2 | ) | (9.4 | ) | (334.8 | ) | 22.1 | (861.8 | ) | ||||||||||||
Operating expenses | (44.3 | ) | (27.2 | ) | (7.2 | ) | (26.3 | ) | — | (105.0 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 5.2 | 5.2 | |||||||||||||||||
Segment profit | $ | 105.3 | $ | 42.6 | $ | 35.8 | $ | 14.9 | $ | 5.2 | $ | 203.8 | |||||||||||
Depreciation and amortization | $ | (44.4 | ) | $ | (27.4 | ) | $ | (11.9 | ) | $ | (12.9 | ) | $ | (1.8 | ) | $ | (98.4 | ) | |||||
Impairments | $ | — | $ | (576.1 | ) | $ | — | $ | (223.1 | ) | $ | — | $ | (799.2 | ) | ||||||||
Goodwill | $ | 1,186.8 | $ | 210.7 | $ | 190.3 | $ | 142.1 | $ | 1,426.9 | $ | 3,156.8 | |||||||||||
Capital expenditures | $ | 29.0 | $ | 13.5 | $ | 19.7 | $ | 38.6 | $ | 3.9 | $ | 104.7 | |||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||||||
Product sales | $ | 52.5 | $ | 426.5 | $ | — | $ | 100.1 | $ | — | $ | 579.1 | |||||||||||
Product sales-affiliates | 19.2 | 36.4 | — | — | (17.8 | ) | 37.8 | ||||||||||||||||
Midstream services | 19.1 | 38.9 | — | 10.6 | — | 68.6 | |||||||||||||||||
Midstream services-affiliates | 122.7 | 2.0 | 45.8 | 2.4 | (2.0 | ) | 170.9 | ||||||||||||||||
Cost of sales | (64.2 | ) | (462.6 | ) | — | (90.2 | ) | 19.8 | (597.2 | ) | |||||||||||||
Operating expenses | (37.9 | ) | (20.3 | ) | (7.0 | ) | (14.6 | ) | — | (79.8 | ) | ||||||||||||
Gain on litigation settlement | — | 6.1 | — | — | — | 6.1 | |||||||||||||||||
Gain on derivative activity | — | — | — | — | 1.0 | 1.0 | |||||||||||||||||
Segment profit | $ | 111.4 | $ | 27.0 | $ | 38.8 | $ | 8.3 | $ | 1.0 | $ | 186.5 | |||||||||||
Depreciation and amortization | $ | (31.6 | ) | $ | (19.1 | ) | $ | (11.8 | ) | $ | (11.7 | ) | $ | (0.9 | ) | $ | (75.1 | ) |
Goodwill | $ | 1,168.2 | $ | 786.8 | $ | 190.3 | $ | 112.5 | $ | 1,436.8 | $ | 3,694.6 | |||||||||||
Capital expenditures | $ | 79.7 | $ | 79.1 | $ | 2.5 | $ | 43.8 | $ | 3.9 | $ | 209.0 | |||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||
Product sales | $ | 237.3 | $ | 1,173.6 | $ | 2.4 | $ | 1,075.5 | $ | — | $ | 2,488.8 | |||||||||||
Product sales-affiliates | 91.5 | 37.4 | 10.2 | 0.8 | (50.3 | ) | 89.6 | ||||||||||||||||
Midstream services | 76.2 | 184.5 | 29.9 | 60.7 | — | 351.3 | |||||||||||||||||
Midstream services-affiliates | 342.5 | 14.3 | 94.7 | 10.6 | (12.8 | ) | 449.3 | ||||||||||||||||
Cost of sales | (305.1 | ) | (1,210.4 | ) | (14.6 | ) | (1,020.4 | ) | 63.1 | (2,487.4 | ) | ||||||||||||
Operating expenses | (136.9 | ) | (78.7 | ) | (23.3 | ) | (73.7 | ) | — | (312.6 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 6.6 | 6.6 | |||||||||||||||||
Segment profit | $ | 305.5 | $ | 120.7 | $ | 99.3 | $ | 53.5 | $ | 6.6 | $ | 585.6 | |||||||||||
Depreciation and amortization | $ | (123.6 | ) | $ | (81.8 | ) | $ | (37.2 | ) | $ | (41.5 | ) | $ | (5.0 | ) | $ | (289.1 | ) | |||||
Impairments | $ | — | $ | (576.1 | ) | $ | — | $ | (223.1 | ) | $ | — | $ | (799.2 | ) | ||||||||
Goodwill | $ | 1,186.8 | $ | 210.7 | $ | 190.3 | $ | 142.1 | $ | 1,426.9 | $ | 3,156.8 | |||||||||||
Capital expenditures | $ | 183.4 | $ | 43.4 | $ | 37.2 | $ | 170.6 | $ | 10.6 | $ | 445.2 | |||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||||
Product sales | $ | 167.0 | $ | 1,075.6 | $ | 11.5 | $ | 226.3 | $ | — | $ | 1,480.4 | |||||||||||
Product sales-affiliates | 331.1 | 38.7 | 147.9 | — | (43.5 | ) | 474.2 | ||||||||||||||||
Midstream services | 38.6 | 87.3 | — | 28.9 | — | 154.8 | |||||||||||||||||
Midstream services-affiliates | 289.7 | 2.0 | 108.1 | 2.4 | (2.0 | ) | 400.2 | ||||||||||||||||
Cost of sales | (397.6 | ) | (1,104.2 | ) | (133.9 | ) | (207.8 | ) | 45.5 | (1,798.0 | ) | ||||||||||||
Operating expenses | (108.2 | ) | (41.9 | ) | (21.0 | ) | (29.3 | ) | — | (200.4 | ) | ||||||||||||
Gain on litigation settlement | — | 6.1 | — | — | — | 6.1 | |||||||||||||||||
Loss on derivative activity | — | — | — | — | (1.9 | ) | (1.9 | ) | |||||||||||||||
Segment profit | $ | 320.6 | $ | 63.6 | $ | 112.6 | $ | 20.5 | $ | (1.9 | ) | $ | 515.4 | ||||||||||
Depreciation and amortization | $ | (91.7 | ) | $ | (43.4 | ) | $ | (37.6 | ) | $ | (24.4 | ) | $ | (1.5 | ) | $ | (198.6 | ) | |||||
Goodwill | $ | 1,168.2 | $ | 786.8 | $ | 190.3 | $ | 112.5 | $ | 1,436.8 | $ | 3,694.6 | |||||||||||
Capital expenditures | $ | 180.2 | $ | 222.4 | $ | 10.5 | $ | 91.3 | $ | 12.6 | $ | 517.0 |
September 30, 2015 | December 31, 2014 | ||||||
Segment Identifiable Assets: | (In millions) | ||||||
Texas | $ | 3,995.0 | $ | 3,303.0 | |||
Louisiana | 2,562.3 | 3,316.5 | |||||
Oklahoma | 895.7 | 892.8 | |||||
Crude and Condensate | 980.8 | 871.9 | |||||
Corporate | 1,840.1 | 1,822.5 | |||||
Total identifiable assets | $ | 10,273.9 | $ | 10,206.7 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Segment profits | $ | 203.8 | $ | 186.5 | $ | 585.6 | $ | 515.4 | |||||||
General and administrative expenses | (34.8 | ) | (24.4 | ) | (105.6 | ) | (66.9 | ) | |||||||
Loss on disposition of assets | (3.2 | ) | — | (3.2 | ) | — | |||||||||
Depreciation and amortization | (98.4 | ) | (75.1 | ) | (289.1 | ) | (198.6 | ) | |||||||
Impairments | (799.2 | ) | — | (799.2 | ) | — | |||||||||
Operating income (loss) | $ | (731.8 | ) | $ | 87.0 | $ | (611.5 | ) | $ | 249.9 |
|
Nine Months Ended September 30, | ||||
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 |
|
Nine Months Ended September 30, | ||||
2015 | ||||
(In 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 |
|
September 30, 2015 | December 31, 2014 | ||||||
(in millions) | |||||||
Accrued interest | $ | 54.7 | $ | 16.9 | |||
Accrued wages and benefits, including taxes | 29.9 | 19.7 | |||||
Accrued ad valorem taxes | 30.2 | 23.2 | |||||
Capital expenditure accruals | 18.4 | 22.6 | |||||
Suspense producer payments | 17.5 | — | |||||
Other | 54.8 | 69.9 | |||||
Other current liabilities | $ | 205.5 | $ | 152.3 |
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