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• | 88,528,451 common units representing an aggregate 23.0% limited partner interest in the Partnership; |
• | 100.0% ownership interest in EnLink Midstream Partners GP, LLC, the general partner of the Partnership (the “General Partner”), which owns a 0.4% general partner interest and all of the incentive distribution rights in the Partnership; and |
• | 16% limited partner interest in EnLink Oklahoma T.O. |
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Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Current assets | $ | 1.1 | ||
Property, plant and equipment | 35.5 | |||
Intangibles | 98.8 | |||
Goodwill | 9.8 | |||
Liabilities assumed: | ||||
Current liabilities | (3.9 | ) | ||
Total identifiable net assets | $ | 141.3 |
Consideration (in millions): | ||||
Cash | $ | 806.4 | ||
Issuance of common units | 214.9 | |||
The Partnership's total installment payable, net of discount of $79.1 million assuming payments are made on January 7, 2017 and 2018 | 420.9 | |||
Total consideration | $ | 1,442.2 | ||
Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Current assets (including $12.8 million in cash) | $ | 23.0 | ||
Property, plant and equipment | 423.2 | |||
Intangibles | 1,034.3 | |||
Liabilities assumed: | ||||
Current liabilities | (38.3 | ) | ||
Total identifiable net assets | $ | 1,442.2 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2015 | 2015 | |||||||
(in millions) | ||||||||
Pro forma total revenues | $ | 1,283.3 | $ | 2,350.9 | ||||
Pro forma net income | $ | 27.7 | $ | 31.5 | ||||
Pro forma net income attributable to EnLink Midstream, LLC | $ | 12.2 | $ | 22.8 | ||||
Pro forma net income per common unit: | ||||||||
Basic | $ | 0.07 | $ | 0.13 | ||||
Diluted | $ | 0.07 | $ | 0.13 |
|
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||
Balance, beginning of period | $ | 703.5 | $ | — | $ | 190.3 | $ | 93.2 | $ | 1,426.9 | $ | 2,413.9 | |||||||||||
Impairment | (473.1 | ) | — | — | (93.2 | ) | (307.0 | ) | (873.3 | ) | |||||||||||||
Acquisition adjustment | 0.7 | — | — | — | — | 0.7 | |||||||||||||||||
Balance, end of period | $ | 231.1 | $ | — | $ | 190.3 | $ | — | $ | 1,119.9 | $ | 1,541.3 |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Six Months Ended June 30, 2016 | ||||||||||||
Customer relationships, beginning of period | $ | 744.5 | $ | (54.6 | ) | $ | 689.9 | |||||
Acquisitions | 1,034.3 | — | 1,034.3 | |||||||||
Amortization expense | — | (57.5 | ) | (57.5 | ) | |||||||
Customer relationships, end of period | $ | 1,778.8 | $ | (112.1 | ) | $ | 1,666.7 |
2016 (remaining) | $ | 58.4 | |
2017 | 116.7 | ||
2018 | 116.7 | ||
2019 | 116.7 | ||
2020 | 116.7 | ||
Thereafter | 1,141.5 | ||
Total | $ | 1,666.7 |
|
|
June 30, 2016 | December 31, 2015 | ||||||
Partnership credit facility (due 2020), interest based on Prime and/or LIBOR plus an applicable margin, interest rate at June 30, 2016 and December 31, 2015 was 2.2% and 1.8%, respectively | $ | 697.0 | $ | 414.0 | |||
Company credit facility (due 2019), interest based on LIBOR plus an applicable margin, interest rate at June 30, 2016 was 4.25% | 15.1 | — | |||||
The Partnership's senior unsecured notes (due 2019), net of discount of $0.3 million at June 30, 2016 and $0.4 million at December 31, 2015, which bear interest at the rate of 2.70% | 399.7 | 399.6 | |||||
The Partnership's senior unsecured notes (due 2022), including a premium of $17.5 million at June 30, 2016 and $18.9 million at December 31, 2015, which bear interest at the rate of 7.125% | 180.0 | 181.4 | |||||
The Partnership's senior unsecured notes (due 2024), net of premium of $2.7 million at June 30, 2016 and $2.9 million at December 31, 2015, which bear interest at the rate of 4.40% | 552.7 | 552.9 | |||||
The Partnership's senior unsecured notes (due 2025), net of discount of $1.2 million at June 30, 2016 and $1.2 million at December 31, 2015, which bear interest at the rate of 4.15% | 748.8 | 748.8 | |||||
The Partnership's senior unsecured notes (due 2044), net of discount of $0.2 million at June 30, 2016 and $0.2 million at December 31, 2015, which bear interest at the rate of 5.60% | 349.8 | 349.8 | |||||
The Partnership's senior unsecured notes (due 2045), net of discount of $6.8 million at June 30, 2016 and $6.9 million at December 31, 2015, which bear interest at the rate of 5.05% | 443.2 | 443.1 | |||||
Debt issuance cost, net of amortization of $7.0 million at June 30, 2016 and $5.1 million at December 31, 2015. | (22.2 | ) | (23.8 | ) | |||
Other debt | — | 0.2 | |||||
Debt classified as long-term | $ | 3,364.1 | $ | 3,066.0 |
|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(in millions) | ||||||||||||||||
ENLC income tax expense (benefit) | $ | (1.8 | ) | $ | 10.2 | $ | (1.6 | ) | $ | 20.9 | ||||||
Total income tax expense (benefit) | $ | (1.8 | ) | $ | 10.2 | $ | (1.6 | ) | $ | 20.9 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(in millions) | ||||||||||||||||
Tax expense (benefit) at statutory federal rate (35%) | $ | 0.5 | $ | 8.4 | $ | (160.0 | ) | $ | 17.4 | |||||||
State income taxes expense (benefit), net of federal tax benefit | — | 0.6 | (14.9 | ) | 1.2 | |||||||||||
Income tax expense (benefit) from partnership | (2.3 | ) | 0.7 | (1.3 | ) | 1.9 | ||||||||||
Non-deductible expense related to asset impairment | — | — | 173.9 | — | ||||||||||||
Other | — | 0.5 | 0.7 | 0.4 | ||||||||||||
Total income tax expense (benefit) | $ | (1.8 | ) | $ | 10.2 | $ | (1.6 | ) | $ | 20.9 |
|
Declaration period | Distribution/unit | Date paid/payable | ||||
Fourth Quarter of 2015 | $ | 0.39 | February 11, 2016 | |||
First Quarter of 2016 | $ | 0.39 | May 12, 2016 | |||
Second Quarter of 2016 | $ | 0.39 | August 11, 2016 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Income allocation for incentive distributions | $ | 14.2 | $ | 11.3 | $ | 28.0 | $ | 20.1 | |||||||
Unit-based compensation attributable to ENLC’s restricted units | (3.6 | ) | (3.9 | ) | (7.6 | ) | (10.9 | ) | |||||||
General Partner share of net income (loss) | — | 0.2 | (2.4 | ) | 0.3 | ||||||||||
General Partner interest in drop down transactions | — | 11.5 | — | 36.1 | |||||||||||
General Partner interest in net income | $ | 10.6 | $ | 19.1 | $ | 18.0 | $ | 45.6 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
EnLink Midstream, LLC interest in net income (loss) | $ | 0.8 | $ | 14.5 | $ | (456.8 | ) | $ | 30.8 | ||||||
Distributed earnings allocated to: | |||||||||||||||
Common units (1) (2) | $ | 45.9 | $ | 41.1 | $ | 91.5 | $ | 81.3 | |||||||
Unvested restricted units (1) (2) | 0.5 | 0.3 | 1.0 | 0.5 | |||||||||||
Total distributed earnings | $ | 46.4 | $ | 41.4 | $ | 92.5 | $ | 81.8 | |||||||
Undistributed loss allocated to: | |||||||||||||||
Common units | $ | (44.7 | ) | $ | (26.7 | ) | $ | (543.2 | ) | $ | (50.7 | ) | |||
Unvested restricted units | (0.9 | ) | (0.2 | ) | (6.1 | ) | (0.3 | ) | |||||||
Total undistributed loss | $ | (45.6 | ) | $ | (26.9 | ) | $ | (549.3 | ) | $ | (51.0 | ) | |||
Net income (loss) allocated to: | |||||||||||||||
Common units | $ | 1.2 | $ | 14.4 | $ | (451.7 | ) | $ | 30.6 | ||||||
Unvested restricted units | (0.4 | ) | 0.1 | (5.1 | ) | 0.2 | |||||||||
Total net income (loss) | $ | 0.8 | $ | 14.5 | $ | (456.8 | ) | $ | 30.8 | ||||||
Basic and diluted net income (loss) per unit: | |||||||||||||||
Basic | $ | 0.01 | $ | 0.09 | $ | (2.55 | ) | $ | 0.19 | ||||||
Diluted | $ | 0.01 | $ | 0.09 | $ | (2.55 | ) | $ | 0.19 |
(1) | Three months ended June 30, 2016 and 2015 represents a declared distribution of $0.255 per unit payable August 12, 2016 and a distribution of $0.25 per unit paid on August 14, 2015, respectively. |
(2) | Six months ended June 30, 2016 and 2015 represents a distribution of $0.255 per unit paid on May 13, 2016, a declared distribution of $0.255 per unit payable on August 12, 2016 and distributions of $0.245 per unit paid on May 15, 2015 and of $0.25 per unit paid on August 14, 2015. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Basic and diluted earnings per unit: | |||||||||||
Weighted average common units outstanding | 180.0 | 164.2 | 179.4 | 164.2 | |||||||
Diluted weighted average units outstanding: | |||||||||||
Weighted average basic common units outstanding | 180.0 | 164.2 | 179.4 | 164.2 | |||||||
Dilutive effect of restricted units issued | 0.8 | 0.4 | — | 0.4 | |||||||
Total weighted average diluted common units outstanding | 180.8 | 164.6 | 179.4 | 164.6 |
|
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Beginning asset retirement obligations | $ | 14.0 | $ | 20.6 | |||
Revisions to existing liabilities | (0.4 | ) | (4.0 | ) | |||
Accretion | 0.2 | 0.3 | |||||
Liabilities settled | (0.6 | ) | (3.2 | ) | |||
Ending asset retirement obligations | $ | 13.2 | $ | 13.7 |
|
Gulf Coast Fractionators | Howard Energy Partners | Total | |||||||||
Three months ended | |||||||||||
June 30, 2016 | |||||||||||
Contributions | $ | — | $ | 34.7 | $ | 34.7 | |||||
Distributions | $ | 0.5 | $ | 5.1 | $ | 5.6 | |||||
Equity in net income | $ | 0.5 | $ | 0.3 | $ | 0.8 | |||||
June 30, 2015 | |||||||||||
Distributions | $ | 4.2 | $ | 8.2 | $ | 12.4 | |||||
Equity in net income | $ | 2.9 | $ | 3.0 | $ | 5.9 | |||||
Six months ended | |||||||||||
June 30, 2016 | |||||||||||
Contributions | $ | — | $ | 41.8 | $ | 41.8 | |||||
Distributions | $ | 3.5 | $ | 11.3 | $ | 14.8 | |||||
Equity in net loss | $ | (1.2 | ) | $ | (0.4 | ) | $ | (1.6 | ) | ||
June 30, 2015 | |||||||||||
Distributions | $ | 6.9 | $ | 12.3 | $ | 19.2 | |||||
Equity in net income | $ | 6.3 | $ | 3.4 | $ | 9.7 |
June 30, 2016 | December 31, 2015 | ||||||
Gulf Coast Fractionators | $ | 47.9 | $ | 52.6 | |||
Howard Energy Partners | 251.8 | 221.7 | |||||
Total investment in unconsolidated affiliates | $ | 299.7 | $ | 274.3 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Cost of unit-based compensation charged to general and administrative expense | $ | 5.7 | $ | 6.6 | $ | 12.0 | $ | 18.5 | |||||||
Cost of unit-based compensation charged to operating expense | 1.7 | 1.1 | 3.4 | 3.0 | |||||||||||
Total amount charged to income | $ | 7.4 | $ | 7.7 | $ | 15.4 | $ | 21.5 | |||||||
Interest of non-controlling partners in unit-based compensation | $ | 2.7 | $ | 3.7 | $ | 5.6 | $ | 9.2 | |||||||
Amount of related income tax benefit recognized in income | $ | 1.8 | $ | 1.5 | $ | 3.7 | $ | 4.6 |
Six Months Ended June 30, 2016 | ||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 1,253,729 | $ | 29.59 | |||||
Granted | 1,046,685 | 10.03 | ||||||
Vested* | (297,439 | ) | 30.33 | |||||
Forfeited | (40,998 | ) | 22.17 | |||||
Non-vested, end of period | 1,961,977 | $ | 19.20 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 32.6 |
* | Vested units include 85,366 units withheld for payroll taxes paid on behalf of employees. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.1 | $ | 0.4 | $ | 3.8 | $ | 7.2 | ||||||||
Fair value of units vested | $ | — | $ | 0.5 | $ | 9.0 | $ | 7.5 |
EnLink Midstream Partners, LP Performance Units: | January 2016 | February 2016 | ||||||
Beginning TSR Price | $ | 14.82 | $ | 14.82 | ||||
Risk-free interest rate | 1.10 | % | 0.89 | % | ||||
Volatility factor | 39.71 | % | 42.33 | % | ||||
Distribution yield | 12.10 | % | 19.20 | % |
Six Months Ended June 30, 2016 | ||||||||
EnLink Midstream Partners, LP Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | 118,126 | $ | 35.41 | |||||
Granted | 258,078 | 9.81 | ||||||
Forfeited | (2,798 | ) | 36.18 | |||||
Non-vested, end of period | 373,406 | $ | 17.71 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 6.2 |
Six Months Ended June 30, 2016 | ||||||||
EnLink Midstream, LLC Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 1,148,893 | $ | 34.78 | |||||
Granted | 1,038,619 | 9.44 | ||||||
Vested* | (320,497 | ) | 36.92 | |||||
Forfeited | (37,952 | ) | 23.95 | |||||
Non-vested, end of period | 1,829,063 | $ | 20.24 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 29.1 |
* | Vested units include 91,256 units withheld for payroll taxes paid on behalf of employees. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
EnLink Midstream, LLC Restricted Incentive Units: | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Aggregate intrinsic value of units vested | $ | — | $ | 0.6 | $ | 3.8 | $ | 8.9 | ||||||||
Fair value of units vested | $ | — | $ | 0.6 | $ | 11.8 | $ | 9.2 |
EnLink Midstream, LLC Performance Units: | January 2016 | February 2016 | ||||||
Beginning TSR Price | $ | 15.38 | $ | 15.38 | ||||
Risk-free interest rate | 1.10 | % | 0.89 | % | ||||
Volatility factor | 46.02 | % | 52.05 | % | ||||
Distribution yield | 8.60 | % | 14.00 | % |
Six Months Ended June 30, 2016 | ||||||||
EnLink Midstream, LLC Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | 105,080 | $ | 40.50 | |||||
Granted | 242,646 | 9.59 | ||||||
Forfeited | (2,525 | ) | 41.31 | |||||
Non-vested, end of period | 345,201 | $ | 18.76 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 5.5 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Change in fair value of derivatives | $ | (8.4 | ) | $ | (2.5 | ) | $ | (14.4 | ) | $ | (6.3 | ) | |||
Realized gain on derivatives | 2.7 | 3.7 | 8.3 | 7.7 | |||||||||||
Gain (loss) on derivative activity | $ | (5.7 | ) | $ | 1.2 | $ | (6.1 | ) | $ | 1.4 |
June 30, 2016 | December 31, 2015 | ||||||
Fair value of derivative assets — current | $ | 5.3 | $ | 16.8 | |||
Fair value of derivative liabilities — current | (5.8 | ) | (2.9 | ) | |||
Fair value of derivative liabilities — long term | — | (0.1 | ) | ||||
Net fair value of derivatives | $ | (0.5 | ) | $ | 13.8 |
June 30, 2016 | |||||||||||
Commodity | Instruments | Unit | Volume | Fair Value | |||||||
(In millions) | |||||||||||
NGL (short contracts) | Swaps | Gallons | (31.9 | ) | $ | 3.4 | |||||
NGL (long contracts) | Swaps | Gallons | 11.4 | (0.4 | ) | ||||||
Natural Gas (short contracts) | Swaps | MMBtu | (6.3 | ) | (2.9 | ) | |||||
Natural Gas (long contracts) | Swaps | MMBtu | 1.3 | (0.1 | ) | ||||||
Condensate (short contracts) | Swaps | MMBbls | (0.1 | ) | (0.5 | ) | |||||
Total fair value of derivatives | $ | (0.5 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Settlement gains on derivatives | $ | — | $ | 3.6 | $ | — | $ | 3.6 |
|
June 30, 2016 Level 2 | December 31, 2015 Level 2 | ||||||
Commodity Swaps* | $ | (0.5 | ) | $ | 13.8 | ||
Total | $ | (0.5 | ) | $ | 13.8 |
* | The fair value of derivative contracts included in assets or liabilities for risk management activities represents the amount at which the instruments could be exchanged in a current arms-length transaction adjusted for the Partnership's and/or the counterparty credit risk of the Partnership as required under FASB ASC 820. |
June 30, 2016 | December 31, 2015 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt | $ | 3,364.1 | $ | 3,148.5 | $ | 3,066.0 | $ | 2,585.5 | |||||||
Installment Payables | $ | 446.5 | $ | 451.6 | $ | — | $ | — | |||||||
Obligations under capital leases | $ | 12.3 | $ | 11.5 | $ | 16.7 | $ | 15.6 |
|
|
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 41.9 | $ | 399.5 | $ | 8.9 | $ | 288.0 | $ | — | $ | 738.3 | |||||||||||
Product sales-affiliates | 72.7 | 15.2 | 22.5 | 0.9 | (79.6 | ) | 31.7 | ||||||||||||||||
Midstream services | 23.2 | 52.7 | 18.0 | 14.4 | — | 108.3 | |||||||||||||||||
Midstream services-affiliates | 111.9 | 25.5 | 41.7 | 4.0 | (22.5 | ) | 160.6 | ||||||||||||||||
Cost of sales | (103.6 | ) | (425.5 | ) | (31.6 | ) | (273.8 | ) | 102.1 | (732.4 | ) | ||||||||||||
Operating expenses | (43.0 | ) | (25.4 | ) | (11.8 | ) | (19.9 | ) | — | (100.1 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (5.7 | ) | (5.7 | ) | |||||||||||||||
Segment profit | $ | 103.1 | $ | 42.0 | $ | 47.7 | $ | 13.6 | $ | (5.7 | ) | $ | 200.7 | ||||||||||
Depreciation and amortization | $ | (48.7 | ) | $ | (28.6 | ) | $ | (34.8 | ) | $ | (10.6 | ) | $ | (2.2 | ) | $ | (124.9 | ) | |||||
Goodwill | $ | 231.1 | $ | — | $ | 190.3 | $ | — | $ | 1,119.9 | $ | 1,541.3 | |||||||||||
Capital expenditures | $ | 57.2 | $ | 14.1 | $ | 63.1 | $ | 0.9 | $ | 4.9 | $ | 140.2 | |||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||||||
Product sales | $ | 81.2 | $ | 401.2 | $ | 0.1 | $ | 473.7 | $ | — | $ | 956.2 | |||||||||||
Product sales-affiliates | 35.0 | 17.0 | 1.7 | 14.0 | (36.0 | ) | 31.7 | ||||||||||||||||
Midstream services | 36.0 | 63.2 | 9.8 | 26.9 | — | 135.9 | |||||||||||||||||
Midstream services-affiliates | 115.8 | 0.3 | 29.1 | 4.3 | — | 149.5 | |||||||||||||||||
Cost of sales | (118.4 | ) | (418.2 | ) | (2.0 | ) | (465.6 | ) | 36.0 | (968.2 | ) | ||||||||||||
Operating expenses | (45.5 | ) | (27.2 | ) | (9.1 | ) | (27.3 | ) | — | (109.1 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 1.2 | 1.2 | |||||||||||||||||
Segment profit | $ | 104.1 | $ | 36.3 | $ | 29.6 | $ | 26.0 | $ | 1.2 | $ | 197.2 | |||||||||||
Depreciation and amortization | $ | (42.8 | ) | $ | (26.9 | ) | $ | (11.8 | ) | $ | (14.5 | ) | $ | (1.7 | ) | $ | (97.7 | ) | |||||
Goodwill | $ | 1,185.0 | $ | 786.8 | $ | 190.3 | $ | 142.1 | $ | 1,427.0 | $ | 3,731.2 | |||||||||||
Capital expenditures | $ | 80.9 | $ | 14.7 | $ | 12.3 | $ | 54.4 | $ | 2.5 | $ | 164.8 | |||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 104.4 | $ | 687.2 | $ | 16.7 | $ | 518.5 | $ | — | $ | 1,326.8 | |||||||||||
Product sales-affiliates | 110.0 | 22.6 | 33.1 | 1.1 | (110.6 | ) | 56.2 | ||||||||||||||||
Midstream services | 50.6 | 107.9 | 33.1 | 31.2 | — | 222.8 | |||||||||||||||||
Midstream services-affiliates | 222.2 | 38.2 | 86.7 | 9.2 | (33.1 | ) | 323.2 | ||||||||||||||||
Cost of sales | (194.9 | ) | (727.6 | ) | (50.9 | ) | (488.9 | ) | 143.7 | (1,318.6 | ) | ||||||||||||
Operating expenses | (82.3 | ) | (48.7 | ) | (24.6 | ) | (42.7 | ) | — | (198.3 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (6.1 | ) | (6.1 | ) | |||||||||||||||
Segment profit | $ | 210.0 | $ | 79.6 | $ | 94.1 | $ | 28.4 | $ | (6.1 | ) | $ | 406.0 | ||||||||||
Depreciation and amortization | $ | (94.9 | ) | $ | (57.9 | ) | $ | (68.6 | ) | $ | (21.0 | ) | $ | (4.4 | ) | $ | (246.8 | ) |
Impairments | $ | (473.1 | ) | $ | — | $ | — | $ | (93.2 | ) | $ | (307.0 | ) | $ | (873.3 | ) | |||||||
Goodwill | $ | 231.1 | $ | — | $ | 190.3 | $ | — | $ | 1,119.9 | $ | 1,541.3 | |||||||||||
Capital expenditures | $ | 80.5 | $ | 36.8 | $ | 132.3 | $ | 4.2 | $ | 6.8 | $ | 260.6 | |||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||||||
Product sales | $ | 131.0 | $ | 773.4 | $ | 0.1 | $ | 722.4 | $ | — | $ | 1,626.9 | |||||||||||
Product sales-affiliates | 60.9 | 24.1 | 5.4 | 14.0 | (56.5 | ) | 47.9 | ||||||||||||||||
Midstream services | 55.6 | 121.1 | 20.5 | 41.1 | — | 238.3 | |||||||||||||||||
Midstream services-affiliates | 231.3 | 0.4 | 60.3 | 8.5 | — | 300.5 | |||||||||||||||||
Cost of sales | (185.6 | ) | (789.1 | ) | (7.1 | ) | (700.3 | ) | 56.5 | (1,625.6 | ) | ||||||||||||
Operating expenses | (92.6 | ) | (51.5 | ) | (16.1 | ) | (47.4 | ) | — | (207.6 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 1.4 | 1.4 | |||||||||||||||||
Segment profit | $ | 200.6 | $ | 78.4 | $ | 63.1 | $ | 38.3 | $ | 1.4 | $ | 381.8 | |||||||||||
Depreciation and amortization | $ | (79.2 | ) | $ | (54.4 | ) | $ | (25.3 | ) | $ | (26.9 | ) | $ | (3.2 | ) | $ | (189.0 | ) | |||||
Goodwill | $ | 1,185.0 | $ | 786.8 | $ | 190.3 | $ | 142.1 | $ | 1,427.0 | $ | 3,731.2 | |||||||||||
Capital expenditures | $ | 154.4 | $ | 29.9 | $ | 17.5 | $ | 132.0 | $ | 6.7 | $ | 340.5 |
June 30, 2016 | December 31, 2015 | ||||||
Segment Identifiable Assets: | (In millions) | ||||||
Texas | $ | 3,179.9 | $ | 3,709.5 | |||
Louisiana | 2,330.9 | 2,309.3 | |||||
Oklahoma | 2,413.6 | 873.4 | |||||
Crude and Condensate | 780.6 | 898.0 | |||||
Corporate | 1,457.3 | 1,751.1 | |||||
Total identifiable assets | $ | 10,162.3 | $ | 9,541.3 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Segment profits | $ | 200.7 | $ | 197.2 | $ | 406.0 | $ | 381.8 | |||||||
General and administrative expenses | (30.3 | ) | (28.1 | ) | (65.4 | ) | (70.8 | ) | |||||||
Loss on disposition of assets | (0.3 | ) | — | (0.1 | ) | — | |||||||||
Depreciation and amortization | (124.9 | ) | (97.7 | ) | (246.8 | ) | (189.0 | ) | |||||||
Impairments | — | — | (873.3 | ) | — | ||||||||||
Operating income (loss) | $ | 45.2 | $ | 71.4 | $ | (779.6 | ) | $ | 122.0 |
|
Six Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
(In millions) | ||||||||
Non-cash financing activities: | ||||||||
Non-cash issuance of common units (1) | $ | 214.9 | $ | — | ||||
Non-cash issuance of common units of the Partnership (2) | — | 180.0 | ||||||
Non-cash issuance of Class C Common Units of the Partnership (2) | — | 180.0 | ||||||
Installment payable, net of discount of $79.1 million (3) | 420.9 | — |
(1) | For the six months ended June 30, 2016, non-cash common units were issued as partial consideration for the Tall Oak acquisition. See Note 3 - Acquisitions for further discussion. |
(2) | For the six months ended June 30, 2015, non-cash common units and Class C Common Units were issued by the Partnership as partial consideration for the Coronado acquisition. |
(3) | The Partnership incurred installment purchase obligations, net of discount, assuming payments of $250.0 million are made on January 7, 2017 and 2018, payable to the seller in connection with the Tall Oak acquisition. See Note 3 - Acquisitions for further discussion. |
|
June 30, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Accrued interest | $ | 23.6 | $ | 23.2 | |||
Accrued wages and benefits, including taxes | 10.3 | 27.7 | |||||
Accrued ad valorem taxes | 23.7 | 27.0 | |||||
Capital expenditure accruals | 23.6 | 22.3 | |||||
Onerous performance obligations | 16.3 | 17.0 | |||||
Other | 48.6 | 57.6 | |||||
Other current liabilities | $ | 146.1 | $ | 174.8 |
|
|
|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2015 | 2015 | |||||||
(in millions) | ||||||||
Pro forma total revenues | $ | 1,283.3 | $ | 2,350.9 | ||||
Pro forma net income | $ | 27.7 | $ | 31.5 | ||||
Pro forma net income attributable to EnLink Midstream, LLC | $ | 12.2 | $ | 22.8 | ||||
Pro forma net income per common unit: | ||||||||
Basic | $ | 0.07 | $ | 0.13 | ||||
Diluted | $ | 0.07 | $ | 0.13 |
Consideration (in millions): | ||||
Cash | $ | 806.4 | ||
Issuance of common units | 214.9 | |||
The Partnership's total installment payable, net of discount of $79.1 million assuming payments are made on January 7, 2017 and 2018 | 420.9 | |||
Total consideration | $ | 1,442.2 | ||
Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Current assets (including $12.8 million in cash) | $ | 23.0 | ||
Property, plant and equipment | 423.2 | |||
Intangibles | 1,034.3 | |||
Liabilities assumed: | ||||
Current liabilities | (38.3 | ) | ||
Total identifiable net assets | $ | 1,442.2 |
Purchase Price Allocation (in millions): | ||||
Assets acquired: | ||||
Current assets | $ | 1.1 | ||
Property, plant and equipment | 35.5 | |||
Intangibles | 98.8 | |||
Goodwill | 9.8 | |||
Liabilities assumed: | ||||
Current liabilities | (3.9 | ) | ||
Total identifiable net assets | $ | 141.3 |
|
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||
Balance, beginning of period | $ | 703.5 | $ | — | $ | 190.3 | $ | 93.2 | $ | 1,426.9 | $ | 2,413.9 | |||||||||||
Impairment | (473.1 | ) | — | — | (93.2 | ) | (307.0 | ) | (873.3 | ) | |||||||||||||
Acquisition adjustment | 0.7 | — | — | — | — | 0.7 | |||||||||||||||||
Balance, end of period | $ | 231.1 | $ | — | $ | 190.3 | $ | — | $ | 1,119.9 | $ | 1,541.3 |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Six Months Ended June 30, 2016 | ||||||||||||
Customer relationships, beginning of period | $ | 744.5 | $ | (54.6 | ) | $ | 689.9 | |||||
Acquisitions | 1,034.3 | — | 1,034.3 | |||||||||
Amortization expense | — | (57.5 | ) | (57.5 | ) | |||||||
Customer relationships, end of period | $ | 1,778.8 | $ | (112.1 | ) | $ | 1,666.7 |
2016 (remaining) | $ | 58.4 | |
2017 | 116.7 | ||
2018 | 116.7 | ||
2019 | 116.7 | ||
2020 | 116.7 | ||
Thereafter | 1,141.5 | ||
Total | $ | 1,666.7 |
|
June 30, 2016 | December 31, 2015 | ||||||
Partnership credit facility (due 2020), interest based on Prime and/or LIBOR plus an applicable margin, interest rate at June 30, 2016 and December 31, 2015 was 2.2% and 1.8%, respectively | $ | 697.0 | $ | 414.0 | |||
Company credit facility (due 2019), interest based on LIBOR plus an applicable margin, interest rate at June 30, 2016 was 4.25% | 15.1 | — | |||||
The Partnership's senior unsecured notes (due 2019), net of discount of $0.3 million at June 30, 2016 and $0.4 million at December 31, 2015, which bear interest at the rate of 2.70% | 399.7 | 399.6 | |||||
The Partnership's senior unsecured notes (due 2022), including a premium of $17.5 million at June 30, 2016 and $18.9 million at December 31, 2015, which bear interest at the rate of 7.125% | 180.0 | 181.4 | |||||
The Partnership's senior unsecured notes (due 2024), net of premium of $2.7 million at June 30, 2016 and $2.9 million at December 31, 2015, which bear interest at the rate of 4.40% | 552.7 | 552.9 | |||||
The Partnership's senior unsecured notes (due 2025), net of discount of $1.2 million at June 30, 2016 and $1.2 million at December 31, 2015, which bear interest at the rate of 4.15% | 748.8 | 748.8 | |||||
The Partnership's senior unsecured notes (due 2044), net of discount of $0.2 million at June 30, 2016 and $0.2 million at December 31, 2015, which bear interest at the rate of 5.60% | 349.8 | 349.8 | |||||
The Partnership's senior unsecured notes (due 2045), net of discount of $6.8 million at June 30, 2016 and $6.9 million at December 31, 2015, which bear interest at the rate of 5.05% | 443.2 | 443.1 | |||||
Debt issuance cost, net of amortization of $7.0 million at June 30, 2016 and $5.1 million at December 31, 2015. | (22.2 | ) | (23.8 | ) | |||
Other debt | — | 0.2 | |||||
Debt classified as long-term | $ | 3,364.1 | $ | 3,066.0 |
|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(in millions) | ||||||||||||||||
ENLC income tax expense (benefit) | $ | (1.8 | ) | $ | 10.2 | $ | (1.6 | ) | $ | 20.9 | ||||||
Total income tax expense (benefit) | $ | (1.8 | ) | $ | 10.2 | $ | (1.6 | ) | $ | 20.9 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(in millions) | ||||||||||||||||
Tax expense (benefit) at statutory federal rate (35%) | $ | 0.5 | $ | 8.4 | $ | (160.0 | ) | $ | 17.4 | |||||||
State income taxes expense (benefit), net of federal tax benefit | — | 0.6 | (14.9 | ) | 1.2 | |||||||||||
Income tax expense (benefit) from partnership | (2.3 | ) | 0.7 | (1.3 | ) | 1.9 | ||||||||||
Non-deductible expense related to asset impairment | — | — | 173.9 | — | ||||||||||||
Other | — | 0.5 | 0.7 | 0.4 | ||||||||||||
Total income tax expense (benefit) | $ | (1.8 | ) | $ | 10.2 | $ | (1.6 | ) | $ | 20.9 |
|
Declaration period | Distribution/unit | Date paid/payable | ||||
Fourth Quarter of 2015 | $ | 0.39 | February 11, 2016 | |||
First Quarter of 2016 | $ | 0.39 | May 12, 2016 | |||
Second Quarter of 2016 | $ | 0.39 | August 11, 2016 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Income allocation for incentive distributions | $ | 14.2 | $ | 11.3 | $ | 28.0 | $ | 20.1 | |||||||
Unit-based compensation attributable to ENLC’s restricted units | (3.6 | ) | (3.9 | ) | (7.6 | ) | (10.9 | ) | |||||||
General Partner share of net income (loss) | — | 0.2 | (2.4 | ) | 0.3 | ||||||||||
General Partner interest in drop down transactions | — | 11.5 | — | 36.1 | |||||||||||
General Partner interest in net income | $ | 10.6 | $ | 19.1 | $ | 18.0 | $ | 45.6 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
EnLink Midstream, LLC interest in net income (loss) | $ | 0.8 | $ | 14.5 | $ | (456.8 | ) | $ | 30.8 | ||||||
Distributed earnings allocated to: | |||||||||||||||
Common units (1) (2) | $ | 45.9 | $ | 41.1 | $ | 91.5 | $ | 81.3 | |||||||
Unvested restricted units (1) (2) | 0.5 | 0.3 | 1.0 | 0.5 | |||||||||||
Total distributed earnings | $ | 46.4 | $ | 41.4 | $ | 92.5 | $ | 81.8 | |||||||
Undistributed loss allocated to: | |||||||||||||||
Common units | $ | (44.7 | ) | $ | (26.7 | ) | $ | (543.2 | ) | $ | (50.7 | ) | |||
Unvested restricted units | (0.9 | ) | (0.2 | ) | (6.1 | ) | (0.3 | ) | |||||||
Total undistributed loss | $ | (45.6 | ) | $ | (26.9 | ) | $ | (549.3 | ) | $ | (51.0 | ) | |||
Net income (loss) allocated to: | |||||||||||||||
Common units | $ | 1.2 | $ | 14.4 | $ | (451.7 | ) | $ | 30.6 | ||||||
Unvested restricted units | (0.4 | ) | 0.1 | (5.1 | ) | 0.2 | |||||||||
Total net income (loss) | $ | 0.8 | $ | 14.5 | $ | (456.8 | ) | $ | 30.8 | ||||||
Basic and diluted net income (loss) per unit: | |||||||||||||||
Basic | $ | 0.01 | $ | 0.09 | $ | (2.55 | ) | $ | 0.19 | ||||||
Diluted | $ | 0.01 | $ | 0.09 | $ | (2.55 | ) | $ | 0.19 |
(1) | Three months ended June 30, 2016 and 2015 represents a declared distribution of $0.255 per unit payable August 12, 2016 and a distribution of $0.25 per unit paid on August 14, 2015, respectively. |
(2) | Six months ended June 30, 2016 and 2015 represents a distribution of $0.255 per unit paid on May 13, 2016, a declared distribution of $0.255 per unit payable on August 12, 2016 and distributions of $0.245 per unit paid on May 15, 2015 and of $0.25 per unit paid on August 14, 2015. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Basic and diluted earnings per unit: | |||||||||||
Weighted average common units outstanding | 180.0 | 164.2 | 179.4 | 164.2 | |||||||
Diluted weighted average units outstanding: | |||||||||||
Weighted average basic common units outstanding | 180.0 | 164.2 | 179.4 | 164.2 | |||||||
Dilutive effect of restricted units issued | 0.8 | 0.4 | — | 0.4 | |||||||
Total weighted average diluted common units outstanding | 180.8 | 164.6 | 179.4 | 164.6 |
|
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Beginning asset retirement obligations | $ | 14.0 | $ | 20.6 | |||
Revisions to existing liabilities | (0.4 | ) | (4.0 | ) | |||
Accretion | 0.2 | 0.3 | |||||
Liabilities settled | (0.6 | ) | (3.2 | ) | |||
Ending asset retirement obligations | $ | 13.2 | $ | 13.7 |
|
Gulf Coast Fractionators | Howard Energy Partners | Total | |||||||||
Three months ended | |||||||||||
June 30, 2016 | |||||||||||
Contributions | $ | — | $ | 34.7 | $ | 34.7 | |||||
Distributions | $ | 0.5 | $ | 5.1 | $ | 5.6 | |||||
Equity in net income | $ | 0.5 | $ | 0.3 | $ | 0.8 | |||||
June 30, 2015 | |||||||||||
Distributions | $ | 4.2 | $ | 8.2 | $ | 12.4 | |||||
Equity in net income | $ | 2.9 | $ | 3.0 | $ | 5.9 | |||||
Six months ended | |||||||||||
June 30, 2016 | |||||||||||
Contributions | $ | — | $ | 41.8 | $ | 41.8 | |||||
Distributions | $ | 3.5 | $ | 11.3 | $ | 14.8 | |||||
Equity in net loss | $ | (1.2 | ) | $ | (0.4 | ) | $ | (1.6 | ) | ||
June 30, 2015 | |||||||||||
Distributions | $ | 6.9 | $ | 12.3 | $ | 19.2 | |||||
Equity in net income | $ | 6.3 | $ | 3.4 | $ | 9.7 |
June 30, 2016 | December 31, 2015 | ||||||
Gulf Coast Fractionators | $ | 47.9 | $ | 52.6 | |||
Howard Energy Partners | 251.8 | 221.7 | |||||
Total investment in unconsolidated affiliates | $ | 299.7 | $ | 274.3 |
|
EnLink Midstream, LLC Performance Units: | January 2016 | February 2016 | ||||||
Beginning TSR Price | $ | 15.38 | $ | 15.38 | ||||
Risk-free interest rate | 1.10 | % | 0.89 | % | ||||
Volatility factor | 46.02 | % | 52.05 | % | ||||
Distribution yield | 8.60 | % | 14.00 | % |
EnLink Midstream Partners, LP Performance Units: | January 2016 | February 2016 | ||||||
Beginning TSR Price | $ | 14.82 | $ | 14.82 | ||||
Risk-free interest rate | 1.10 | % | 0.89 | % | ||||
Volatility factor | 39.71 | % | 42.33 | % | ||||
Distribution yield | 12.10 | % | 19.20 | % |
Six Months Ended June 30, 2016 | ||||||||
EnLink Midstream Partners, LP Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | 118,126 | $ | 35.41 | |||||
Granted | 258,078 | 9.81 | ||||||
Forfeited | (2,798 | ) | 36.18 | |||||
Non-vested, end of period | 373,406 | $ | 17.71 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 6.2 |
Six Months Ended June 30, 2016 | ||||||||
EnLink Midstream, LLC Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-Vested, beginning of period | 105,080 | $ | 40.50 | |||||
Granted | 242,646 | 9.59 | ||||||
Forfeited | (2,525 | ) | 41.31 | |||||
Non-vested, end of period | 345,201 | $ | 18.76 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 5.5 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Cost of unit-based compensation charged to general and administrative expense | $ | 5.7 | $ | 6.6 | $ | 12.0 | $ | 18.5 | |||||||
Cost of unit-based compensation charged to operating expense | 1.7 | 1.1 | 3.4 | 3.0 | |||||||||||
Total amount charged to income | $ | 7.4 | $ | 7.7 | $ | 15.4 | $ | 21.5 | |||||||
Interest of non-controlling partners in unit-based compensation | $ | 2.7 | $ | 3.7 | $ | 5.6 | $ | 9.2 | |||||||
Amount of related income tax benefit recognized in income | $ | 1.8 | $ | 1.5 | $ | 3.7 | $ | 4.6 |
Six Months Ended June 30, 2016 | ||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 1,253,729 | $ | 29.59 | |||||
Granted | 1,046,685 | 10.03 | ||||||
Vested* | (297,439 | ) | 30.33 | |||||
Forfeited | (40,998 | ) | 22.17 | |||||
Non-vested, end of period | 1,961,977 | $ | 19.20 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 32.6 |
* | Vested units include 85,366 units withheld for payroll taxes paid on behalf of employees. |
Six Months Ended June 30, 2016 | ||||||||
EnLink Midstream, LLC Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | 1,148,893 | $ | 34.78 | |||||
Granted | 1,038,619 | 9.44 | ||||||
Vested* | (320,497 | ) | 36.92 | |||||
Forfeited | (37,952 | ) | 23.95 | |||||
Non-vested, end of period | 1,829,063 | $ | 20.24 | |||||
Aggregate intrinsic value, end of period (in millions) | $ | 29.1 |
* | Vested units include 91,256 units withheld for payroll taxes paid on behalf of employees. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
EnLink Midstream, LLC Restricted Incentive Units: | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Aggregate intrinsic value of units vested | $ | — | $ | 0.6 | $ | 3.8 | $ | 8.9 | ||||||||
Fair value of units vested | $ | — | $ | 0.6 | $ | 11.8 | $ | 9.2 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Aggregate intrinsic value of units vested | $ | 0.1 | $ | 0.4 | $ | 3.8 | $ | 7.2 | ||||||||
Fair value of units vested | $ | — | $ | 0.5 | $ | 9.0 | $ | 7.5 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Settlement gains on derivatives | $ | — | $ | 3.6 | $ | — | $ | 3.6 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Change in fair value of derivatives | $ | (8.4 | ) | $ | (2.5 | ) | $ | (14.4 | ) | $ | (6.3 | ) | |||
Realized gain on derivatives | 2.7 | 3.7 | 8.3 | 7.7 | |||||||||||
Gain (loss) on derivative activity | $ | (5.7 | ) | $ | 1.2 | $ | (6.1 | ) | $ | 1.4 |
June 30, 2016 | December 31, 2015 | ||||||
Fair value of derivative assets — current | $ | 5.3 | $ | 16.8 | |||
Fair value of derivative liabilities — current | (5.8 | ) | (2.9 | ) | |||
Fair value of derivative liabilities — long term | — | (0.1 | ) | ||||
Net fair value of derivatives | $ | (0.5 | ) | $ | 13.8 |
June 30, 2016 | |||||||||||
Commodity | Instruments | Unit | Volume | Fair Value | |||||||
(In millions) | |||||||||||
NGL (short contracts) | Swaps | Gallons | (31.9 | ) | $ | 3.4 | |||||
NGL (long contracts) | Swaps | Gallons | 11.4 | (0.4 | ) | ||||||
Natural Gas (short contracts) | Swaps | MMBtu | (6.3 | ) | (2.9 | ) | |||||
Natural Gas (long contracts) | Swaps | MMBtu | 1.3 | (0.1 | ) | ||||||
Condensate (short contracts) | Swaps | MMBbls | (0.1 | ) | (0.5 | ) | |||||
Total fair value of derivatives | $ | (0.5 | ) |
|
June 30, 2016 Level 2 | December 31, 2015 Level 2 | ||||||
Commodity Swaps* | $ | (0.5 | ) | $ | 13.8 | ||
Total | $ | (0.5 | ) | $ | 13.8 |
* | The fair value of derivative contracts included in assets or liabilities for risk management activities represents the amount at which the instruments could be exchanged in a current arms-length transaction adjusted for the Partnership's and/or the counterparty credit risk of the Partnership as required under FASB ASC 820. |
June 30, 2016 | December 31, 2015 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt | $ | 3,364.1 | $ | 3,148.5 | $ | 3,066.0 | $ | 2,585.5 | |||||||
Installment Payables | $ | 446.5 | $ | 451.6 | $ | — | $ | — | |||||||
Obligations under capital leases | $ | 12.3 | $ | 11.5 | $ | 16.7 | $ | 15.6 |
|
Texas | Louisiana | Oklahoma | Crude and Condensate | Corporate | Totals | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 41.9 | $ | 399.5 | $ | 8.9 | $ | 288.0 | $ | — | $ | 738.3 | |||||||||||
Product sales-affiliates | 72.7 | 15.2 | 22.5 | 0.9 | (79.6 | ) | 31.7 | ||||||||||||||||
Midstream services | 23.2 | 52.7 | 18.0 | 14.4 | — | 108.3 | |||||||||||||||||
Midstream services-affiliates | 111.9 | 25.5 | 41.7 | 4.0 | (22.5 | ) | 160.6 | ||||||||||||||||
Cost of sales | (103.6 | ) | (425.5 | ) | (31.6 | ) | (273.8 | ) | 102.1 | (732.4 | ) | ||||||||||||
Operating expenses | (43.0 | ) | (25.4 | ) | (11.8 | ) | (19.9 | ) | — | (100.1 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (5.7 | ) | (5.7 | ) | |||||||||||||||
Segment profit | $ | 103.1 | $ | 42.0 | $ | 47.7 | $ | 13.6 | $ | (5.7 | ) | $ | 200.7 | ||||||||||
Depreciation and amortization | $ | (48.7 | ) | $ | (28.6 | ) | $ | (34.8 | ) | $ | (10.6 | ) | $ | (2.2 | ) | $ | (124.9 | ) | |||||
Goodwill | $ | 231.1 | $ | — | $ | 190.3 | $ | — | $ | 1,119.9 | $ | 1,541.3 | |||||||||||
Capital expenditures | $ | 57.2 | $ | 14.1 | $ | 63.1 | $ | 0.9 | $ | 4.9 | $ | 140.2 | |||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||||||
Product sales | $ | 81.2 | $ | 401.2 | $ | 0.1 | $ | 473.7 | $ | — | $ | 956.2 | |||||||||||
Product sales-affiliates | 35.0 | 17.0 | 1.7 | 14.0 | (36.0 | ) | 31.7 | ||||||||||||||||
Midstream services | 36.0 | 63.2 | 9.8 | 26.9 | — | 135.9 | |||||||||||||||||
Midstream services-affiliates | 115.8 | 0.3 | 29.1 | 4.3 | — | 149.5 | |||||||||||||||||
Cost of sales | (118.4 | ) | (418.2 | ) | (2.0 | ) | (465.6 | ) | 36.0 | (968.2 | ) | ||||||||||||
Operating expenses | (45.5 | ) | (27.2 | ) | (9.1 | ) | (27.3 | ) | — | (109.1 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 1.2 | 1.2 | |||||||||||||||||
Segment profit | $ | 104.1 | $ | 36.3 | $ | 29.6 | $ | 26.0 | $ | 1.2 | $ | 197.2 | |||||||||||
Depreciation and amortization | $ | (42.8 | ) | $ | (26.9 | ) | $ | (11.8 | ) | $ | (14.5 | ) | $ | (1.7 | ) | $ | (97.7 | ) | |||||
Goodwill | $ | 1,185.0 | $ | 786.8 | $ | 190.3 | $ | 142.1 | $ | 1,427.0 | $ | 3,731.2 | |||||||||||
Capital expenditures | $ | 80.9 | $ | 14.7 | $ | 12.3 | $ | 54.4 | $ | 2.5 | $ | 164.8 | |||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||
Product sales | $ | 104.4 | $ | 687.2 | $ | 16.7 | $ | 518.5 | $ | — | $ | 1,326.8 | |||||||||||
Product sales-affiliates | 110.0 | 22.6 | 33.1 | 1.1 | (110.6 | ) | 56.2 | ||||||||||||||||
Midstream services | 50.6 | 107.9 | 33.1 | 31.2 | — | 222.8 | |||||||||||||||||
Midstream services-affiliates | 222.2 | 38.2 | 86.7 | 9.2 | (33.1 | ) | 323.2 | ||||||||||||||||
Cost of sales | (194.9 | ) | (727.6 | ) | (50.9 | ) | (488.9 | ) | 143.7 | (1,318.6 | ) | ||||||||||||
Operating expenses | (82.3 | ) | (48.7 | ) | (24.6 | ) | (42.7 | ) | — | (198.3 | ) | ||||||||||||
Loss on derivative activity | — | — | — | — | (6.1 | ) | (6.1 | ) | |||||||||||||||
Segment profit | $ | 210.0 | $ | 79.6 | $ | 94.1 | $ | 28.4 | $ | (6.1 | ) | $ | 406.0 | ||||||||||
Depreciation and amortization | $ | (94.9 | ) | $ | (57.9 | ) | $ | (68.6 | ) | $ | (21.0 | ) | $ | (4.4 | ) | $ | (246.8 | ) |
Impairments | $ | (473.1 | ) | $ | — | $ | — | $ | (93.2 | ) | $ | (307.0 | ) | $ | (873.3 | ) | |||||||
Goodwill | $ | 231.1 | $ | — | $ | 190.3 | $ | — | $ | 1,119.9 | $ | 1,541.3 | |||||||||||
Capital expenditures | $ | 80.5 | $ | 36.8 | $ | 132.3 | $ | 4.2 | $ | 6.8 | $ | 260.6 | |||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||||||
Product sales | $ | 131.0 | $ | 773.4 | $ | 0.1 | $ | 722.4 | $ | — | $ | 1,626.9 | |||||||||||
Product sales-affiliates | 60.9 | 24.1 | 5.4 | 14.0 | (56.5 | ) | 47.9 | ||||||||||||||||
Midstream services | 55.6 | 121.1 | 20.5 | 41.1 | — | 238.3 | |||||||||||||||||
Midstream services-affiliates | 231.3 | 0.4 | 60.3 | 8.5 | — | 300.5 | |||||||||||||||||
Cost of sales | (185.6 | ) | (789.1 | ) | (7.1 | ) | (700.3 | ) | 56.5 | (1,625.6 | ) | ||||||||||||
Operating expenses | (92.6 | ) | (51.5 | ) | (16.1 | ) | (47.4 | ) | — | (207.6 | ) | ||||||||||||
Gain on derivative activity | — | — | — | — | 1.4 | 1.4 | |||||||||||||||||
Segment profit | $ | 200.6 | $ | 78.4 | $ | 63.1 | $ | 38.3 | $ | 1.4 | $ | 381.8 | |||||||||||
Depreciation and amortization | $ | (79.2 | ) | $ | (54.4 | ) | $ | (25.3 | ) | $ | (26.9 | ) | $ | (3.2 | ) | $ | (189.0 | ) | |||||
Goodwill | $ | 1,185.0 | $ | 786.8 | $ | 190.3 | $ | 142.1 | $ | 1,427.0 | $ | 3,731.2 | |||||||||||
Capital expenditures | $ | 154.4 | $ | 29.9 | $ | 17.5 | $ | 132.0 | $ | 6.7 | $ | 340.5 |
June 30, 2016 | December 31, 2015 | ||||||
Segment Identifiable Assets: | (In millions) | ||||||
Texas | $ | 3,179.9 | $ | 3,709.5 | |||
Louisiana | 2,330.9 | 2,309.3 | |||||
Oklahoma | 2,413.6 | 873.4 | |||||
Crude and Condensate | 780.6 | 898.0 | |||||
Corporate | 1,457.3 | 1,751.1 | |||||
Total identifiable assets | $ | 10,162.3 | $ | 9,541.3 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Segment profits | $ | 200.7 | $ | 197.2 | $ | 406.0 | $ | 381.8 | |||||||
General and administrative expenses | (30.3 | ) | (28.1 | ) | (65.4 | ) | (70.8 | ) | |||||||
Loss on disposition of assets | (0.3 | ) | — | (0.1 | ) | — | |||||||||
Depreciation and amortization | (124.9 | ) | (97.7 | ) | (246.8 | ) | (189.0 | ) | |||||||
Impairments | — | — | (873.3 | ) | — | ||||||||||
Operating income (loss) | $ | 45.2 | $ | 71.4 | $ | (779.6 | ) | $ | 122.0 |
|
Six Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
(In millions) | ||||||||
Non-cash financing activities: | ||||||||
Non-cash issuance of common units (1) | $ | 214.9 | $ | — | ||||
Non-cash issuance of common units of the Partnership (2) | — | 180.0 | ||||||
Non-cash issuance of Class C Common Units of the Partnership (2) | — | 180.0 | ||||||
Installment payable, net of discount of $79.1 million (3) | 420.9 | — |
(1) | For the six months ended June 30, 2016, non-cash common units were issued as partial consideration for the Tall Oak acquisition. See Note 3 - Acquisitions for further discussion. |
(2) | For the six months ended June 30, 2015, non-cash common units and Class C Common Units were issued by the Partnership as partial consideration for the Coronado acquisition. |
(3) | The Partnership incurred installment purchase obligations, net of discount, assuming payments of $250.0 million are made on January 7, 2017 and 2018, payable to the seller in connection with the Tall Oak acquisition. See Note 3 - Acquisitions for further discussion. |
|
June 30, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Accrued interest | $ | 23.6 | $ | 23.2 | |||
Accrued wages and benefits, including taxes | 10.3 | 27.7 | |||||
Accrued ad valorem taxes | 23.7 | 27.0 | |||||
Capital expenditure accruals | 23.6 | 22.3 | |||||
Onerous performance obligations | 16.3 | 17.0 | |||||
Other | 48.6 | 57.6 | |||||
Other current liabilities | $ | 146.1 | $ | 174.8 |
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