ENLINK MIDSTREAM, LLC, 10-Q filed on 5/4/2016
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2016
Apr. 22, 2016
Document Information [Line Items]
 
 
Document Type
10-Q 
 
Document Fiscal Period Focus
Q1 
 
Document Period End Date
Mar. 31, 2016 
 
Document Fiscal Year Focus
2016 
 
Amendment Flag
false 
 
Entity Registrant Name
EnLink Midstream, LLC 
 
Entity Central Index Key
0001592000 
 
Entity Current Reporting Status
Yes 
 
Entity Voluntary Filers
No 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Common Stock, Shares Outstanding
 
180,033,569 
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 5.8 
$ 18.0 
Accounts receivable:
 
 
Trade, net of allowance for bad debt of $0.3 and $0.3, respectively
40.0 
37.5 
Accrued revenue and other
261.3 
268.8 
Related party
88.3 
110.8 
Fair value of derivative assets
10.5 
16.8 
Natural gas and NGLs inventory, prepaid expenses and other
33.6 
41.8 
Total current assets
439.5 
493.7 
Property and equipment, net of accumulated depreciation of $1,847.3 and $1,757.6, respectively
6,117.0 
5,666.8 
Intangible assets, net of accumulated amortization of $82.1 and $54.6, respectively
1,696.7 
689.9 
Goodwill
1,540.6 
2,413.9 
Investment in unconsolidated affiliates
269.8 
274.3 
Other assets, net
2.7 
2.7 
Total assets
10,066.3 
9,541.3 
Current liabilities:
 
 
Accounts payable and drafts payable
35.7 
33.2 
Accounts payable to related party
22.8 
14.8 
Accrued gas, NGLs, condensate and crude oil purchases
202.9 
206.7 
Fair value of derivative liabilities
3.2 
2.9 
Installment payable, net of discount of $21.0
229.0 
Other current liabilities
187.2 
174.8 
Total current liabilities
680.8 
432.4 
Long-term debt
3,204.2 
3,066.0 
Fair value of derivative liabilities
0.1 
Asset retirement obligation
13.1 
12.9 
Other long-term liabilities
59.5 
65.9 
Installment payable, net of discount of $45.7
204.3 
Deferred tax liability
537.7 
532.1 
Redeemable non-controlling interest
6.8 
7.0 
Members' equity (180,033,569 and 164,242,160 units issued and outstanding at March 31, 2016 and December 31, 2015, respectively)
2,010.5 
2,285.7 
Non-controlling interest
3,349.4 
3,139.2 
Total members' equity
5,359.9 
5,424.9 
Commitment and Contingencies (Note 15)
   
   
Total liabilities and members’ equity
$ 10,066.3 
$ 9,541.3 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Assets [Abstract]
 
 
Allowance for bad debt
$ 0.3 
$ 0.3 
Property and equipment, accumulated depreciation
1,847.3 
1,757.6 
Intangible assets, accumulated amortization
82.1 
54.6 
Liabilities [Abstract]
 
 
Installment payable, net of discount of $21.0
21.0 
Installment payable, net of discount of $45.7
$ 45.7 
$ 0 
Members' Equity [Abstract]
 
 
Common Stock, Shares, Issued
180,033,569 
164,242,160 
Condensed Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Revenues:
 
 
Product sales
$ 588.5 
$ 670.7 
Product sales - affiliates
24.5 
16.2 
Midstream services
114.5 
102.4 
Midstream services - affiliates
162.6 
151.0 
Gain (loss) on derivative activity
(0.4)
0.2 
Total revenues
889.7 
940.5 
Operating costs and expenses:
 
 
Cost of sales (1)
586.2 
657.4 
Operating expenses (2)
98.2 
98.4 
General and administrative
35.1 
42.9 
Gain on disposition of assets
(0.2)
Depreciation and amortization
121.9 
91.3 
Impairments
873.3 
Total operating costs and expenses
1,714.5 
890.0 
Operating income (loss)
(824.8)
50.5 
Other income (expense):
 
 
Interest expense, net of interest income
(44.0)
(19.1)
Income (loss) from unconsolidated affiliates
(2.4)
3.7 
Other income
0.1 
0.5 
Total other expense
(46.3)
(14.9)
Income (loss) before non-controlling interest and income taxes
(871.1)
35.6 
Income tax provision
(0.2)
(10.6)
Net income (loss)
(871.3)
25.0 
Net income (loss) attributable to the non-controlling interest
(413.7)
8.0 
Net income (loss) attributable to EnLink Midstream, LLC
(457.6)
17.0 
Devon investment interest in net income
0.7 
EnLink Midstream, LLC interest in net income (loss)
$ (457.6)
$ 16.3 
Net income attributable to EnLink Midstream Partners, LLC per limited partners' unit:
 
 
Basic common unit
$ (2.56)
$ 0.1 
Diluted common unit
$ (2.56)
$ 0.1 
Condensed Consolidated Statements of Operations (parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Affiliate purchased gas, NGLs, condensate and crude
$ 586.2 
$ 657.4 
Affiliate Operating Costs and Expenses
98.2 
98.4 
Affiliated Entity [Member]
 
 
Affiliate purchased gas, NGLs, condensate and crude
42.6 
7.9 
Affiliate Operating Costs and Expenses
$ 0.1 
$ 0 
Consolidated Statements of Changes in Members' Equity (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Stockholders' Equity Attributable to Parent
$ 2,010.5 
$ 2,285.7 
Stockholders' Equity Attributable to Noncontrolling Interest
3,349.4 
3,139.2 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
5,359.9 
5,424.9 
Increase (Decrease) in Members' Equity
 
 
Unit-based compensation
8.0 
 
Issuance of common units by the Partnership
2.1 
 
Issuance of preferred units by the Partnership
724.5 
 
Issuance of common units
215.1 
 
Conversion of restricted units for common, net of units withheld for taxes
(1.1)
 
Non-controlling partner's impact of conversion of restricted units
(1.1)
 
Change in equity due to issuance of units by the Partnership
(6.4)
 
Non-controlling interest distributions
(92.9)
 
Non-controlling interest contribution
3.0 
 
Distributions to members
(46.3)
 
Contributions from Devon to the Partnership
1.4 
 
Net income (loss)
(871.3)
 
Increase (Decrease) in Temporary Equity
 
 
Redeemable Noncontrolling Interest, Equity, Carrying Amount
7.0 
 
Redeemable Noncontrolling Interest Reclassifications Between Permanent And Temporary Equity
(0.2)
 
Redeemable Noncontrolling Interest, Equity, Carrying Amount
6.8 
 
Common Units
 
 
Stockholders' Equity Attributable to Parent
2,010.5 
2,285.7 
Common Stock, Shares, Outstanding
180.0 
164.2 
Increase (Decrease) in Members' Equity
 
 
Unit-based compensation
4.0 
 
Issuance of common units
215.1 
 
Stock Issued During Period, Shares, New Issues
15.6 
 
Conversion of restricted units for common, net of units withheld for taxes
(1.1)
 
Conversion of restricted units for common, net of units withheld for taxes, units
0.2 
 
Change in equity due to issuance of units by the Partnership
10.7 
 
Distributions to members
(46.3)
 
Net income (loss)
(457.6)
 
Non-Controlling Interest
 
 
Stockholders' Equity Attributable to Noncontrolling Interest
3,349.4 
3,139.2 
Increase (Decrease) in Members' Equity
 
 
Unit-based compensation
4.0 
 
Issuance of common units by the Partnership
2.1 
 
Issuance of preferred units by the Partnership
724.5 
 
Non-controlling partner's impact of conversion of restricted units
(1.1)
 
Change in equity due to issuance of units by the Partnership
(17.1)
 
Non-controlling interest distributions
(92.9)
 
Non-controlling interest contribution
3.0 
 
Contributions from Devon to the Partnership
1.4 
 
Net income (loss)
$ (413.7)
 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Statement of Cash Flows [Abstract]
 
 
Net Income (Loss)
$ (871.3)
$ 25.0 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
Impairments
873.3 
Depreciation and amortization
121.9 
91.3 
Accretion expense
0.1 
0.1 
Gain on disposition of assets
(0.2)
Deferred tax (benefit) expense
(0.8)
5.4 
Non-cash unit-based compensation
8.0 
13.9 
(Gain) loss on derivatives recognized in net income (loss)
0.4 
(0.2)
Cash settlements on derivatives
5.6 
3.9 
Amortization of debt issue costs
0.9 
0.7 
Amortization of net (premium) discount on notes
11.7 
(0.8)
Redeemable non-controlling interest expense
0.2 
(2.6)
Distribution of earnings from unconsolidated affiliates
2.7 
(Income) loss from unconsolidated affiliates
2.4 
(3.7)
Changes in assets and liabilities net of assets acquired and liabilities assumed:
 
 
Accounts receivable, accrued revenue and other
32.0 
122.4 
Natural gas and NGLs inventory, prepaid expenses and other
22.4 
(16.1)
Accounts payable, accrued gas and crude oil purchases and other accrued liabilities
(12.2)
(71.3)
Net cash provided by operating activities
194.4 
170.7 
Cash flows from investing activities, net of assets acquired and liabilities assumed:
 
 
Additions to property and equipment
(135.4)
(161.1)
Acquisition of business, net of cash acquired
(796.8)
(312.0)
Proceeds from sale of property
0.2 
Investment in unconsolidated affiliates
(7.1)
Distribution from unconsolidated affiliates in excess of earnings
6.2 
4.1 
Net cash used in investing activities
(932.9)
(469.0)
Cash flows from financing activities:
 
 
Proceeds from borrowings
397.3 
959.1 
Payments on borrowings
(259.0)
(487.1)
Payments on capital lease obligations
(1.1)
(1.0)
Decrease in drafts payable
(12.7)
Debt financing costs
(0.3)
(1.8)
Conversion of restricted units, net of units withheld for taxes
(1.1)
(2.7)
Conversion of Partnership's restricted units, net of units withheld for taxes
(1.1)
(2.4)
Proceeds from issuance of Partnership's common units
2.1 
2.2 
Distributions to non-controlling partners
(93.1)
(85.8)
Distribution to Members
(46.3)
(38.8)
Contributions from Devon
1.4 
7.9 
Proceeds from issuance of Partnership preferred units
724.5 
Contributions by non-controlling interest
3.0 
2.8 
Net cash provided by financing activities
726.3 
339.7 
Net increase (decrease) in cash and cash equivalents
(12.2)
41.4 
Cash and cash equivalents, beginning of period
18.0 
68.4 
Cash and cash equivalents, end of period
5.8 
109.8 
Cash paid for interest
3.5 
2.3 
Cash paid (refund) for income taxes
$ (6.6)
$ (3.5)
Organization and Summary of Significant Agreement
Organization and Summary of Significant Agreements
(1) General
In this report, the terms “Company” or “Registrant” as well as the terms “ENLC,” “our,” “we,” and “us,” or like terms, are sometimes used as references to EnLink Midstream, LLC and its consolidated subsidiaries. References in this report to “EnLink Midstream Partners, LP,” the “Partnership,” “ENLK” or like terms refer to EnLink Midstream Partners, LP itself or EnLink Midstream Partners, LP together with its consolidated subsidiaries, including EnLink Midstream Operating, LP and EnLink TOM Holdings, LP and its consolidated subsidiaries (collectively, “TOM”). TOM is sometimes used to refer to EnLink TOM Holdings, LP itself or EnLink TOM Holdings, LP together with its consolidated subsidiaries.
(a)Organization of Business
EnLink Midstream, LLC is a Delaware limited liability company formed in October 2013. The Company’s common units are traded on the New York Stock Exchange under the symbol “ENLC.”
Our assets consist of equity interests in the Partnership and TOM. The Partnership is a publicly traded limited partnership engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids, or NGLs, condensate and crude oil, as well as providing crude oil, condensate and brine services to producers. TOM is a partnership held by us and the Partnership and is engaged in the gathering and processing of natural gas. As of March 31, 2016, our interests in the Partnership and TOM consist of the following:
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 TOM.
(b) Nature of Business
The Partnership primarily focuses on providing midstream energy services, including gathering, transmission, processing, fractionation, brine services and marketing to producers of natural gas, natural gas liquids (“NGLs”), crude oil and condensate. The Partnership connects the wells of natural gas producers in its market areas to its gathering systems, processes natural gas to remove NGLs, fractionates NGLs into purity products and markets those products for a fee, transports natural gas and ultimately provides natural gas to a variety of markets. The Partnership purchases natural gas from natural gas producers and other supply sources and sells that natural gas to utilities, industrial consumers, other marketers and pipelines. The Partnership operates processing plants that process gas transported to the plants by major interstate pipelines or from its own gathering systems under a variety of fee-based arrangements. The Partnership provides a variety of crude oil and condensate services, which include crude oil and condensate gathering and transmission via pipelines, barges, rail and trucks, condensate stabilization and brine disposal. The Partnership also has crude oil and condensate terminal facilities that provide access for crude oil and condensate producers to premium markets. The Partnership's gas gathering systems consist of networks of pipelines that collect natural gas from points near producing wells and transport it to larger pipelines for further transmission. The Partnership's transmission pipelines primarily receive natural gas from its gathering systems and from third party gathering and transmission systems and deliver natural gas to industrial end-users, utilities and other pipelines. The Partnership also has transmission lines that transport NGLs from east Texas and from our south Louisiana processing plants to its fractionators in south Louisiana. The Partnership's crude oil and condensate gathering and transmission systems consist of trucking facilities, pipelines, rail and barge facilities that, in exchange for a fee, transport oil from a producer site to an end user. The Partnership's processing plants remove NGLs and CO2 from a natural gas stream and its fractionators separate the NGLs into separate NGL products, including ethane, propane, iso-butane, normal butane and natural gasoline.
(c) Consolidation of the Partnership
In January 2016, we adopted Accounting Standards Updates (“ASU”) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. This ASU provides additional guidance to reporting entities in evaluating whether certain legal entities, such as limited partnerships, limited liability corporations and securitization structures, should be consolidated.  Due to ENLC’s ownership of the General Partner, the Partnership is considered a variable interest entity as the limited partners lack the ability to exercise kick-out rights over the General Partner and do not have substantive participating rights. Further, ENLC, including the consideration of the Incentive Distribution Rights, is considered the primary beneficiary as it has the power to direct the activities that most significantly impact the Partnership’s economic performance. The adoption of this standard has no impact on our consolidated financial statements as we will continue to consolidate the Partnership.
Significant Accounting Policies
Significant Accounting Policies
(2) Significant Accounting Policies
(a) Basis of Presentation
The accompanying condensed consolidated financial statements are prepared in accordance with the instructions to Form 10-Q, are unaudited and do not include all the information and disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of results of operations for a full year. All significant intercompany balances and transactions have been eliminated in consolidation.
During the first half of 2015, the Partnership acquired assets from Devon through drop down transactions. Due to our control of the Partnership through our ownership and control of the General Partner and Devon's control of us through its ownership of our managing member, the acquisition from Devon was considered a transfer of net assets between entities under common control. As such, the Company was required to recast its historical financial statements to include the activities of such assets from the date that these entities were under common control. The condensed consolidated financial statements for periods prior to the Partnership’s acquisition of the assets from Devon have been prepared from Devon's historical cost-basis accounts for the acquired assets and may not necessarily be indicative of the actual results of operations that would have occurred if the Partnership had owned the acquired assets during the periods reported. Net income attributable to the assets acquired from Devon for periods prior to the Partnership’s acquisition is allocated to “Devon investment interest in net income” on the Company's Condensed Consolidated Statements of Operations.
(b) Recent Accounting Pronouncements
In January 2016, we adopted ASU 2015-03, Interest - Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability and requires retrospective application.  The application of this new accounting guidance resulted in the reclassification of $23.8 million of debt issuance costs from “Other Assets, Net” to “Long-term debt” in our accompanying Condensed Consolidated Balance Sheet as of December 31, 2015.
In January 2016, we adopted ASU 2015-17, Balance Sheet Classification of Deferred Taxes on a prospective basis. This new standard required that deferred tax assets and liabilities be classified as noncurrent in our Condensed Consolidated Balance Sheet as of March 31, 2016.
In January 2016, we adopted ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, which eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated.
In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation – Stock Compensation (“ASU 2016-09”). First, the new standard will require all of the tax effects related to share-based payments at settlement (or expiration) to be recorded through the income statement, and is required to be applied prospectively. Second, the new standard also allows entities to withhold taxes of an amount up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award, and is required to be adopted using a modified retrospective approach. Third, under the ASU, forfeitures can be estimated, as currently required, or recognized when they occur. If elected, the change to recognize forfeitures when they occur must be adopted using a modified retrospective approach. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016 including interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact this standard will have on our condensed consolidated financial statements and related disclosures.
In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (“ASU 2016-08”). The new standard retained the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer, and revised and clarified the indicators to evaluate when making this determination. ASU 2016-08 has the same effective date and transition requirements as the new revenue standard, which is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. Early application is permitted for annual reporting periods beginning after December 15, 2016. The update will have no impact on our condensed consolidated financial statements or related disclosures.
In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). The new standard eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. Investors should add the cost of acquiring the additional interest in the investee (if any) to the current basis of their previously held interest. ASU 2016-07 is effective for annual reporting periods beginning after December 15, 2016 including interim periods within those annual periods. Early adoption is permitted. We do not expect this standard to impact our condensed consolidated financial statements and related disclosures.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) - Amendments to the FASB Accounting Standards Codification (“ASU 2016-02”). Lessees will need to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance is replaced with a new model applicable to both lessees and lessors. Additional revisions have been made to embedded leases, reassessment requirements, and lease term assessments including variable lease payment, discount rate, and lease incentives. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018 including interim periods within those annual periods. Early adoption is permitted, and is required to be adopted using a modified retrospective transition. We are currently evaluating the impact this standard will have on our condensed consolidated financial statements and related disclosures.
In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). Under this new standard, the FASB issued new guidance related to accounting for unconsolidated affiliate investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. ASU 2016-01 is effective for annual reporting periods beginning after December 15, 2017 including interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact this standard will have on our condensed consolidated financial statements and related disclosures.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 will replace existing revenue recognition requirements in GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Partnership expects to be entitled in exchange for transferring goods or services to a customer. The new standard will also require significantly expanded disclosures regarding the qualitative and quantitative information of the Partnership's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and is to be applied retrospectively, with early application permitted for annual reporting periods beginning after December 15, 2016. We are currently evaluating the impact the pronouncement will have on our condensed consolidated financial statements and related disclosures.
Acquisition
Acquisition
(3) Acquisitions
Matador Acquisition
On October 1, 2015, the Partnership acquired 100% of the voting equity interests in a subsidiary of Matador Resources Company (“Matador”), which has gathering and processing assets operations in the Delaware Basin, for approximately $141.3 million. The transaction was accounted for using the acquisition method.
The following table presents the fair value of the identified assets received and liabilities assumed at the acquisition date. The purchase price allocation has been prepared on a preliminary basis pending receipt of a final valuation report and is subject to change.
Purchase Price Allocation (in millions):
 
 
Assets acquired:
 
 
Current assets
 
$
1.1

Property, plant and equipment
 
36.2

Intangibles
 
98.8

Goodwill
 
9.1

Liabilities assumed:
 
 
Current liabilities
 
(3.9
)
Total identifiable net assets
 
$
141.3


The Partnership recognized intangible assets related to customer relationships. The acquired intangible assets will be amortized on a straight-line basis over the estimated customer life of approximately 15 years. Goodwill recognized from the acquisition primarily relates to the value created from additional growth opportunities and greater operating leverage in the Permian Basin. All such goodwill is allocated to the Partnership's Texas segment and is non-deductible for tax purposes.
Deadwood Acquisition
Prior to November 2015, the Partnership co-owned the Deadwood natural gas processing plant with a subsidiary of Apache Corporation (“Apache”). On November 16, 2015, the Partnership acquired Apache's 50% ownership interest in the Deadwood natural gas processing facility for approximately $40.1 million, all of which is considered property, plant and equipment. The final working capital settlement was approximately $1.5 million. The transaction was accounted for using the acquisition method.
Tall Oak Acquisition
On January 7, 2016, the Partnership and ENLC acquired an 84% and 16% interest, respectively, in TOM for approximately $1.4 billion. The first installment of $1.02 billion for the acquisition was paid at closing. The final installment of $500.0 million is due by the Partnership no later than the first anniversary of the closing date with the option to defer $250.0 million of the final installment up to 24 months following the closing date. The Partnership's installment payables are valued net of discount within the total purchase price.
The first installment consisted of approximately $1.02 billion and was funded by (a) approximately $783.9 million in cash paid by the Partnership, the majority of which was derived from the proceeds from the issuance of Preferred Units, and (b) 15,564,009 common units representing limited liability company interests in ENLC issued directly by ENLC and approximately $22.0 million in cash paid by us. The transaction was accounted for using the acquisition method.
The following table presents the consideration we paid and the fair value of the identified assets received and liabilities assumed at the acquisition date. The purchase price allocation has been prepared on a preliminary basis pending receipt of a final valuation report and is subject to change.
Consideration (in millions):
 
 
Cash
 
$
805.9

Issuance of common units
 
215.1

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
 
$
1,441.9

 
 
 
Purchase Price Allocation (in millions):
 
 
Assets acquired:
 
 
Current assets (including $6.8 million in cash)
 
$
20.2

Property, plant and equipment
 
423.2

Intangibles
 
1,034.3

Liabilities assumed:
 
 
Current liabilities
 
(35.8
)
Total identifiable net assets
 
$
1,441.9


We recognized intangible assets related to customer relationships. The acquired intangible assets will be amortized on a straight-line basis over the estimated customer life of approximately 15 years.
We incurred $4.3 million of direct transaction costs for the three months ended March 31, 2016. These costs are included in general and administrative costs in the accompanying Condensed Consolidated Statements of Operations.
For the period from January 7, 2016 to March 31, 2016, we recognized $27.3 million of revenues and $14.2 million of net loss related to the assets acquired.
Pro Forma Information
The following unaudited pro forma condensed financial information for the three months ended March 31, 2015 gives effect to the January 2015 LPC acquisition, March 2015 Coronado acquisition, October 2015 Matador acquisition, November 2015 Deadwood acquisition and January 2016 Tall Oak acquisition as if they had occurred on January 1, 2015. The unaudited pro forma condensed financial information has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the transactions taken place on the dates indicated and is not intended to be a projection of future results. Pro forma financial information associated with the acquisitions is reflected below.
 
 
Three Months Ended
March 31,
 
 
2015
 
 
(in millions)

Pro forma total revenues
 
$
1,067.6

Pro forma net income
 
$
3.8

Pro forma net income attributable to EnLink Midstream, LLC
 
$
10.6

Pro forma net income per common unit:
 
 
Basic
 
$
0.06

Diluted
 
$
0.06

Goodwill and Intangible Assets
Goodwill Disclosure
(4) Goodwill and Intangible Assets
Goodwill
Goodwill is the cost of an acquisition less the fair value of the net identifiable assets of the acquired business. We evaluate goodwill for impairment annually as of October 31, and whenever events or changes in circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. We first assess qualitative factors to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as the basis for determining whether it is necessary to perform the two-step goodwill impairment test. We may elect to perform the two-step goodwill impairment test without completing a qualitative assessment. If a two-step goodwill impairment test is elected or required, the first step involves comparing the fair value of the reporting unit to its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, the second step of the process involves comparing the implied fair value of goodwill to the carrying value of the goodwill for that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the implied fair value of that goodwill, the excess of the carrying value over the implied fair value is recognized as an impairment loss. During February 2016, we determined that continued further weakness in the overall energy sector driven by low commodity prices together with a further decline in our unit price and the Partnership's unit price subsequent to year-end caused a change in circumstances warranting an interim impairment test. Based on these triggering events, we performed a goodwill impairment analysis on all reporting units.
We and the Partnership perform our goodwill assessments at the reporting unit level for all reporting units. The Partnership uses a discounted cash flow analysis to perform the assessments for the Texas and Crude and Condensate reporting units. We use a market approach to perform the assessment for our Corporate reporting unit. Key assumptions in the analysis include the use of an appropriate discount rate, terminal year multiples, control premium and estimated future cash flows including volume and price forecasts and estimated operating and general and administrative costs. In estimating cash flows, the Partnership incorporates current and historical market and financial information, among other factors.
Using the fair value approaches described above, in step one of the goodwill impairment test, we and the Partnership determined that the estimated fair values of the Partnership's Texas and Crude and Condensate reporting units and our Corporate reporting unit were less than their respective carrying amounts. At the Partnership's Texas and Crude and Condensate reporting units, this is primarily related to increases in the discount rate subsequent to year-end. For our Corporate reporting unit, this is primarily due to a further decline in our unit price subsequent to year-end. The second step of the goodwill impairment test at the Partnership measures the amount of impairment loss and involves allocating the estimated fair value of the reporting unit among all of the assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. Through the analysis, a goodwill impairment loss for the Texas, Crude and Condensate, and Corporate reporting units in the amount of $873.3 million was recognized for the three months ended March 31, 2016, which is included in impairment expense in the Condensed Consolidated Statements of Operations.
We and the Partnership concluded that the fair value of goodwill of the Oklahoma reporting unit exceeded its carrying value, and the entire amount of goodwill disclosed on the Condensed Consolidated Balance Sheet associated with this remaining reporting unit is recoverable. Therefore, no other goodwill impairment was identified or recorded for this reporting unit as a result of our goodwill impairment analysis.
Our and the Partnership's respective impairment determinations involved significant assumptions and judgments, as discussed above. Differing assumptions regarding any of these inputs could have a significant effect on the various valuations. If actual results are not consistent with our and the Partnership's assumptions and estimates, or assumptions and estimates change due to new information, we and the Partnership may be exposed to additional goodwill impairment charges, which would be recognized in the period in which the carrying value exceeds fair value. The estimated fair values of our Corporate reporting unit and the Partnership's Texas reporting unit may be impacted in the future by a further decline in our unit price or the Partnership's unit price or a continuing prolonged period of lower commodity prices which may adversely affect the Partnership's estimate of future cash flows all of which could result in future goodwill impairment charges.
The table below provides a summary of our change in carrying amount of goodwill, by assigned reporting unit (in millions):
 
Texas
 
Louisiana
 
Oklahoma
 
Crude and Condensate
 
Corporate
 
Totals
Three Months Ended March 31, 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
)
Balance, end of period
$
230.4

 
$


$
190.3


$


$
1,119.9


$
1,540.6


Intangible Assets
Intangible assets associated with customer relationships are amortized on a straight-line basis over the expected period of benefits of the customer relationships, which range from ten to twenty years.
The following table represents the Partnership's change in carrying value of intangible assets (in millions):
 
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Three Months Ended March 31, 2016
 
 
 
 
 
 
Customer relationships, beginning of period
 
$
744.5

 
$
(54.6
)
 
$
689.9

Acquisitions
 
1,034.3

 

 
1,034.3

Amortization expense
 

 
(27.5
)
 
(27.5
)
Customer relationships, end of period
 
$
1,778.8

 
$
(82.1
)
 
$
1,696.7


The weighted average amortization period for intangible assets is 14 years. Amortization expense for intangibles was approximately $27.5 million and $11.5 million for the three months ended March 31, 2016 and 2015, respectively.
The following table summarizes the Partnership's estimated aggregate amortization expense for the next five years (in millions):
2016 (remaining)
$
86.3

2017
115.1

2018
115.1

2019
115.1

2020
115.1

Thereafter
1,150.0

Total
$
1,696.7

Affiliate Transactions
Related Party Transactions Disclosure
(5) Affiliate Transactions
The Partnership engages in various transactions with Devon and other affiliated entities. For the three months ended March 31, 2016 and 2015, Devon was a significant customer to the Partnership. Devon accounted for 21.0% and 17.8% of the Partnership's revenues for the three months ended March 31, 2016 and 2015, respectively. The Partnership had an accounts receivable balance related to transactions with Devon of $88.3 million as of March 31, 2016 and $110.8 million as of December 31, 2015. Additionally, the Partnership had an accounts payable balance related to transactions with Devon of $22.8 million as of March 31, 2016 and $14.8 million as of December 31, 2015. Management believes these transactions are executed on terms that are fair and reasonable and are consistent with terms for transactions with nonaffiliated third parties. The amounts related to affiliate transactions are specified in the accompanying financial statements.
TOM Gathering and Processing Agreement with Devon
In January 2016, in connection with the Tall Oak acquisition, we acquired a Gas Gathering and Processing Agreement with Devon Energy Production Company, L.P. (“DEPC”) pursuant to which TOM provides gathering, treating, compression, dehydration, stabilization, processing and fractionation services, as applicable, for natural gas delivered by DEPC. The agreement has a minimum volume commitment that will remain in place during each calendar quarter for the next five years and a remaining overall term of approximately 13 years. Additionally, the agreement provides TOM with dedication of all of the natural gas owned or controlled by DEPC and produced from or attributable to existing and future wells located on certain oil, natural gas and mineral leases covering land within the acreage dedications, excluding properties previously dedicated to other natural gas gathering systems not owned and operated by DEPC. DEPC is entitled to firm service, meaning a level of gathering and processing service in which DEPC’s reserved capacity may not be interrupted, except due to force majeure, and may not be displaced by another customer or class of service. TOM will take delivery of as much Devon natural gas as is permitted in accordance with applicable law.
Long-Term Debt
Long-Term Debt
(6) Long-Term Debt
As of March 31, 2016 and December 31, 2015, long-term debt consisted of the following (in millions):
 
March 31,
2016
 
December 31,
2015
Partnership credit facility (due 2020), interest based on Prime and/or LIBOR plus an applicable margin, interest rate at March 31, 2016 and December 31, 2015 was 2.2% and 1.8%, respectively
$
543.0

 
$
414.0

Company credit facility (due 2019), interest based on LIBOR plus an applicable margin, interest rate at March 31, 2016 was 4.25%
9.3

 

The Partnership's senior unsecured notes (due 2019), net of discount of $0.4 million at March 31, 2016 and $0.4 million at December 31, 2015, which bear interest at the rate of 2.70%
399.6

 
399.6

The Partnership's senior unsecured notes (due 2022), including a premium of $18.2 million at March 31, 2016 and $18.9 million at December 31, 2015, which bear interest at the rate of 7.125%
180.7

 
181.4

The Partnership's senior unsecured notes (due 2024), net of premium of $2.8 million at March 31, 2016 and $2.9 million at December 31, 2015, which bear interest at the rate of 4.40%
552.8

 
552.9

The Partnership's senior unsecured notes (due 2025), net of discount of $1.2 million at March 31, 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 $0.3 million at March 31, 2016 and $0.2 million at December 31, 2015, which bear interest at the rate of 5.60%
349.7

 
349.8

The Partnership's senior unsecured notes (due 2045), net of discount of $6.8 million at March 31, 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 $6.0 million at March 31, 2016 and $5.1 million at December 31, 2015.
(23.1
)
 
(23.8
)
Other debt
0.2

 
0.2

Debt classified as long-term
$
3,204.2

 
$
3,066.0


Company Credit Facility
The Company has a $250.0 million revolving credit facility, which includes a $125.0 million letter of credit subfacility (the “credit facility”). Our obligations under the credit facility are guaranteed by two of our wholly-owned subsidiaries and secured by first priority liens on (i) 88,528,451 Partnership common units and the 100% membership interest in the General Partner indirectly held by us, (ii) the 100% equity interest in each of our wholly-owned subsidiaries held by us and (iii) any additional equity interests subsequently pledged as collateral under the credit facility.
The credit facility will mature on March 7, 2019. The credit facility contains certain financial, operational and legal covenants. The financial covenants are tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter, and include (i) maintaining a maximum consolidated leverage ratio (as defined in the credit facility, but generally computed as the ratio of consolidated funded indebtedness to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) of 4.00 to 1.00, provided that the maximum consolidated leverage ratio is 4.50 to 1.00 during an acquisition period (as defined in the credit facility) and (ii) maintaining a minimum consolidated interest coverage ratio (as defined in the credit facility, but generally computed as the ratio of consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges to consolidated interest charges) of 2.50 to 1.00 at all times unless an investment grade event (as defined in the credit facility) occurs.
Borrowings under the credit facility bear interest, at our option, at either the Eurodollar Rate (the LIBOR Rate) plus an applicable margin or the Base Rate (the highest of the Federal Funds Rate plus 0.5%, the 30-day Eurodollar Rate plus 1.0%, or the administrative agent’s prime rate) plus an applicable margin. The applicable margins vary depending on our leverage ratio. Upon breach by us of certain covenants governing the credit facility, amounts outstanding under the credit facility, if any, may become due and payable immediately and the liens securing the credit facility could be foreclosed upon.
As of March 31, 2016 there was $9.3 million in outstanding borrowings under the credit facility, leaving approximately $240.7 million available for future borrowing based on the borrowing capacity of $250.0 million. The Company expect to be in compliance with all credit facility covenants for at least the next twelve months.
Partnership Credit Facility
The Partnership has a $1.5 billion unsecured revolving credit facility, which includes a $500.0 million letter of credit subfacility (the “Partnership credit facility”) that matures on March 6, 2020. Under the Partnership credit facility, the Partnership is permitted to, (1) subject to certain conditions and the receipt of additional commitments by one or more lenders, increase the aggregate commitments under the Partnership credit facility by an additional amount not to exceed $500 million and, (2) subject to certain conditions and the consent of the requisite lenders, on two separate occasions extend the maturity date of the Partnership credit facility by one year on each occasion. The Partnership credit facility contains certain financial, operational and legal covenants. Among other things, these covenants include maintaining a ratio of consolidated indebtedness to consolidated EBITDA (as defined in the Partnership credit facility, which definition includes projected EBITDA from certain capital expansion projects) of no more than 5.0 to 1.0. If the Partnership consummates one or more acquisitions in which the aggregate purchase price is $50.0 million or more, the maximum allowed ratio of consolidated indebtedness to consolidated EBITDA may be increased to 5.5 to 1.0 for the quarter of the acquisition and the three following quarters.
Borrowings under the Partnership credit facility bear interest at the Partnership’s option at the Eurodollar Rate (the LIBOR Rate) plus an applicable margin or the Base Rate (the highest of the Federal Funds Rate plus 0.50%, the 30-day Eurodollar Rate plus 1.0% or the administrative agent’s prime rate) plus an applicable margin. The applicable margins vary depending on the Partnership’s credit rating. Upon breach by the Partnership of certain covenants governing the Partnership credit facility, amounts outstanding under the Partnership credit facility, if any, may become due and payable immediately.
As of March 31, 2016, there were $10.8 million in outstanding letters of credit and $543.0 million in outstanding borrowings under the Partnership’s credit facility, leaving approximately $946.2 million available for future borrowing based on the borrowing capacity of $1.5 billion.
All other material terms and conditions of the Partnership credit facility are described in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Indebtedness” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The Partnership expects to be in compliance with all credit facility covenants for at least the next twelve months.
Income Tax
Income Tax Disclosure
(7)     Income Taxes
Income taxes included in the condensed consolidated financial statements were as follows for the periods presented:
 
 
Three Months Ended  
 March 31,
 
 
2016
 
2015
 
 
(in millions)
ENLC income tax expense
 
$
0.2

 
$
10.6

       Total income tax expense
 
$
0.2

 
$
10.6

The following schedule reconciles total income tax expense and the amount computed by applying the statutory U.S. federal tax rate to income before income taxes:
 
 
Three Months Ended  
 March 31,
 
 
2016
 
2015
 
 
(in millions)
Tax expense (benefit) at statutory federal rate (35%)
 
$
(160.5
)
 
$
9.0

State income taxes expense (benefit), net of federal tax benefit
 
(14.9
)
 
0.6

Income taxes from partnership
 
1.0

 
1.2

Non-deductible expense related to asset impairment
 
173.9

 

Other
 
0.7

 
(0.2
)
       Total income tax expense
 
$
0.2

 
$
10.6

Certain Provision of the Partnership Agreement
Certain Provisions of the Partnership Agreement
(8)      Certain Provisions of the Partnership Agreement
(a) Issuance of Common Units
In November 2014, the Partnership entered into an Equity Distribution Agreement (the “BMO EDA”) with BMO Capital Markets Corp., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Jefferies LLC, Raymond James & Associates, Inc. and RBC Capital Markets, LLC (collectively, the “Sales Agents”) to sell up to $350.0 million in aggregate gross sales of the Partnership’s common units from time to time through an “at the market” equity offering program. The Partnership may also sell common units to any Sales Agent as principal for the Sales Agent’s own account at a price agreed upon at the time of sale. The Partnership has no obligation to sell any of the common units under the BMO EDA and may at any time suspend solicitation and offers under the BMO EDA. For the three months ended March 31, 2016, the Partnership sold an aggregate of 0.2 million common units under the BMO EDA, generating proceeds of approximately $2.1 million (net of approximately $0.1 million of commissions). The Partnership used the net proceeds for general partnership purposes. As of March 31, 2016, approximately $314.8 million remains available to be issued under the BMO EDA.
(b) Class C Common Units
In March 2015, the Partnership issued 6,704,285 Class C Common Units representing a new class of limited partner interests as partial consideration for the acquisition of Coronado. The Class C Common Units are substantially similar in all respects to the Partnership's common units, except that distributions paid on the Class C Common Units may be paid in cash or in additional Class C Common Units issued in kind, as determined by the General Partner in its sole discretion. The Class C Common Units will automatically convert into common units on a one-for-one basis on May 13, 2016. Distributions on the Class C Common Units for the three months ended December 31, 2015 were paid-in-kind (“PIK”) through the issuance of 209,044 Class C Common Units on February 11, 2016. A distribution on the Class C Common Units of $0.390 per unit was declared for the three months ended March 31, 2016, which will result in the issuance of 233,107 additional Class C Common Units on May 12, 2016.
(c) Preferred Units
In January 2016, the Partnership issued an aggregate of 50,000,000 Series B Cumulative Convertible Preferred Units representing the Partnership's limited partner interests to Enfield Holdings, L.P. (“Enfield”) in a private placement for a cash purchase price of $15.00 per Preferred Unit (the “Issue Price”), resulting in net proceeds of approximately $724.5 million after fees and deductions. Proceeds from the Private Placement were used to partially fund the Partnership's portion of the purchase price payable in connection with the Tall Oak acquisition. Affiliates of the Goldman Sachs Group, Inc. and affiliates of TPG Global, LLC own interests in the general partner of Enfield. The Preferred Units are convertible into the Partnership's common units on a one-for-one basis, subject to certain adjustments, at any time after the record date for the quarter ending June 30, 2017 (a) in full, at the Partnership's option, if the volume weighted average price of a common unit over the 30-trading day period ending two trading days prior to the conversion date (the “Conversion VWAP”) is greater than 150% of the Issue Price or (b) in full or in part, at Enfield’s option. In addition, upon certain events involving a change of control of the General Partner or our managing member, all of the Preferred Units will automatically convert into a number of common units equal to the greater of (i) the number of common units into which the Preferred Units would then convert and (ii) the number of Preferred Units to be converted multiplied by an amount equal to (x) 140% of the Issue Price divided by (y) the Conversion VWAP.
Enfield will receive a quarterly distribution, subject to certain adjustments, equal to (x) during the quarter ending March 31, 2016 through the quarter ending June 30, 2017, an annual rate of 8.5% on the Issue Price payable in-kind in the form of additional Preferred Units and (y) thereafter, at an annual rate of 7.5% on the Issue Price payable in cash (the “Cash Distribution Component”) plus an in-kind distribution equal to the greater of (A) an annual rate of 1.0% of the Issue Price and (B) an amount equal to (i) the excess, if any, of the distribution that would have been payable had the Preferred Units converted into common units over the Cash Distribution Component, divided by (ii) the Issue Price. A distribution on the Preferred Units was declared for the three months ended March 31, 2016, which will result in the issuance of 992,445 additional Preferred Units distributable on May 12, 2016. Income was allocated to the preferred units in an amount equal to the quarterly distribution with respect to the period earned. For the three months ended March 31, 2016, $11.8 million of income was allocated to the preferred units.
(d)  Distributions
Unless restricted by the terms of the Partnership credit facility and/or the indentures governing the Partnership’s senior unsecured notes, the Partnership must make distributions of 100% of available cash, as defined in the partnership agreement, within 45 days following the end of each quarter. Distributions are made to the General Partner in accordance with its current percentage interest with the remainder to the common unitholders, subject to the payment of incentive distributions as described below to the extent that certain target levels of cash distributions are achieved. The General Partner is not entitled to its general partner or incentive distributions with respect to the Class C Common Units and Preferred Units issued in kind.
Under the quarterly incentive distribution provisions, generally the Partnership's General Partner is entitled to 13.0% of amounts the Partnership distributes in excess of $0.25 per unit, 23% of the amounts the Partnership distributes in excess of $0.3125 per unit and 48.0% of amounts the Partnership distributes in excess of $0.375 per unit.
A summary of the Partnership's distribution activity relating to the common units for the three months ended March 31, 2016 is provided below:
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

(e) Allocation of Partnership Income
Net income is allocated to the General Partner in an amount equal to its incentive distributions as described in (d) above. The General Partner's share of net income consists of incentive distributions to the extent earned, a deduction for unit-based compensation attributable to ENLC’s restricted units and the percentage interest of the Partnership’s net income adjusted for ENLC's unit-based compensation specifically allocated to the General Partner. The net income allocated to the General Partner is as follows for the three months ended March 31, 2016 and 2015 (in millions):
 
Three Months Ended
March 31,
 
2016
 
2015
Income allocation for incentive distributions
$
13.8

 
$
8.8

Unit-based compensation attributable to ENLC’s restricted units
(4.0
)
 
(7.0
)
General Partner share of net income (loss)
(2.4
)
 
0.1

General Partner interest in drop down transactions

 
24.6

General Partner interest in net income
$
7.4

 
$
26.5

Earnings per Unit and Dilution Computations
Earnings per Unit and Dilution Computations
(9) Earnings per Unit and Dilution Computations
As required under FASB ASC 260-10-45-61A, unvested unit-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities, as defined in FASB ASC 260-10-20, for earnings per unit calculations. Net income (loss) attributable to the VEX Interests acquired from Devon for periods prior to acquisition are not allocated for purposes of calculating net income (loss) per common unit as they were fully assigned to the general partner interest. The following table reflects the computation of basic and diluted earnings per unit for the three months ended March 31, 2016 and 2015 (in millions, except per unit amounts):
 
Three Months Ended
March 31,
 
2016
 
2015
EnLink Midstream, LLC interest in net income (loss)
$
(457.6
)
 
$
16.3

Distributed earnings allocated to:
 
 
 
Common units (1)
$
45.6

 
$
40.2

Unvested restricted units (1)
0.5

 
0.2

Total distributed earnings
$
46.1

 
$
40.4

Undistributed loss allocated to:
 
 
 
Common units
$
(498.5
)
 
$
(24.0
)
Unvested restricted units
(5.2
)
 
(0.1
)
Total undistributed loss
$
(503.7
)
 
$
(24.1
)
Net income (loss) allocated to:
 
 
 
Common units
$
(452.9
)
 
$
16.2

Unvested restricted units
(4.7
)
 
0.1

Total net income (loss)
$
(457.6
)
 
$
16.3

Total basic and diluted net income (loss) per unit:
 
 
 
Basic
$
(2.56
)
 
$
0.10

Diluted
$
(2.56
)
 
$
0.10

(1)
Three months ended March 31, 2016 and 2015 represents a declared distribution of $0.255 per unit payable May 13, 2016 and a distribution of $0.245 per unit paid on May 15, 2015.
The following are the unit amounts used to compute the basic and diluted earnings per unit for the periods presented (in millions):
 
Three Months Ended
March 31,
 
2016
 
2015
Basic and diluted earnings per unit:
 
 
 
Weighted average common units outstanding
178.7

 
164.2

Diluted weighted average units outstanding:
 
 
 
Weighted average basic common units outstanding
178.7

 
164.2

Dilutive effect of restricted units issued

 
0.3

Total weighted average diluted common units outstanding
178.7

 
164.5


All outstanding units were included in the computation of diluted earnings per unit and weighted based on the number of days such units were outstanding during the periods presented.
Asset Retirement Obligation
Asset Retirement Obligation Disclosure
(10) Asset Retirement Obligations
The schedule below summarizes the changes in the Partnership’s asset retirement obligation:
 
Three Months Ended
March 31,
 
2016
 
2015
 
(in millions)
Beginning asset retirement obligations
$
14.0

 
$
20.6

Revisions to existing liabilities
(0.4
)
 
(3.9
)
Accretion
0.1

 
0.1

    Liabilities settled
(0.6
)
 
(3.2
)
Ending asset retirement obligations
$
13.1

 
$
13.6


There are no asset retirement obligations included in Other Current Liabilities as of March 31, 2016. Asset retirement obligations of $1.1 million is included in Other Current Liabilities as of March 31, 2015.
Investment in Unconsolidated Affiliate
Investment in unconsolidated affiliate
(11) Investment in Unconsolidated Affiliates
The Partnership's unconsolidated investments consisted of a contractual right to the economic benefits and burdens associated with Devon's 38.75% ownership interest in Gulf Coast Fractionators (“GCF”) at March 31, 2016 and 2015 and a 30.6% ownership interest in Howard Energy Partners (“HEP”) at March 31, 2016 and 2015.
The following table shows the activity related to the Partnership’s investment in unconsolidated affiliates for the periods indicated (in millions):
 
Gulf Coast Fractionators
 
Howard Energy Partners
 
Total
Three months ended
 
 
 
 
 
March 31, 2016
 
 
 
 
 
Contributions
$

 
$
7.1

 
$
7.1

Distributions
$
3.0

 
$
6.2

 
$
9.2

Equity in net loss
$
(1.7
)
 
$
(0.7
)
 
$
(2.4
)
 
 
 
 
 
 
March 31, 2015
 
 
 
 
 
Distributions
$
2.7

 
$
4.1

 
$
6.8

Equity in net income
$
3.3

 
$
0.4

 
$
3.7


The following table shows the balances related to the Partnership’s investment in unconsolidated affiliates for the periods indicated (in millions):
 
March 31,
2016
 
December 31,
2015
Gulf Coast Fractionators
$
47.9

 
$
52.6

Howard Energy Partners
221.9

 
221.7

Total investment in unconsolidated affiliates
$
269.8

 
$
274.3

Employee Incentive Plans
Employee Incentive Plans
(12) Employee Incentive Plans
(a)         Long-Term Incentive Plans
The Partnership accounts for unit-based compensation in accordance with FASB ASC 718, which requires that compensation related to all unit-based awards, including unit options, be recognized in the condensed consolidated financial statements. On April 7, 2016, the General Partner amended and restated the EnLink Midstream GP, LLC Long-Term Incentive Plan (the “GP Plan”). Amendments to the GP Plan included an increase to the number of the Partnership's common units authorized for issuance under the GP Plan by 5,000,000 common units to an aggregate of 14,070,000 common units and other technical changes.
The Partnership and ENLC each have similar unit-based compensation payment plans for officers and employees, which are described below.  Unit-based compensation associated with ENLC's unit-based compensation plan awarded to officers and employees of the Partnership is recorded by the Partnership since ENLC has no substantial or managed operating activities other than its interests in the Partnership and TOM. Amounts recognized in the condensed consolidated financial statements with respect to these plans are as follows (in millions): 
 
Three Months Ended
March 31,
 
2016
 
2015
Cost of unit-based compensation charged to general and administrative expense
$
6.3

 
$
12.0

Cost of unit-based compensation charged to operating expense
1.7

 
1.9

    Total amount charged to income
$
8.0

 
$
13.9

Interest of non-controlling partners in unit-based compensation
$
2.9

 
$
5.4

Amount of related income tax benefit recognized in income
$
1.9

 
$
3.2


(b)  EnLink Midstream Partners, LP Restricted Incentive Units
The Partnership's restricted incentive units are valued at their fair value at the date of grant, which is equal to the market value of common units on such date. A summary of the restricted incentive unit activity for the three months ended March 31, 2016 is provided below:
 
 
Three Months Ended 
 March 31, 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
 
1,041,022

 
10.01

Vested*
 
(294,460
)
 
30.40

Forfeited
 
(27,797
)
 
24.12

Non-vested, end of period
 
1,972,494

 
$
19.21

Aggregate intrinsic value, end of period (in millions)
 
$
23.8

 
 


 * Vested units include 84,429 units withheld for payroll taxes paid on behalf of employees.
A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested during the three months ended March 31, 2016 and 2015 are provided below (in millions):


Three Months Ended  
 March 31,
EnLink Midstream Partners, LP Restricted Incentive Units:

2016
 
2015
Aggregate intrinsic value of units vested

$
3.7

 
$
6.8

Fair value of units vested

$
9.0

 
$
7.0


As of March 31, 2016, there was $22.4 million of unrecognized compensation cost related to non-vested restricted incentive units. That cost is expected to be recognized over a weighted-average period of 1.9 years.
(c)       EnLink Midstream Partners, LP Performance Units
During the first quarter of 2016, the General Partner and the managing member of ENLC granted performance awards under the GP Plan and the EnLink Midstream, LLC 2014 Long-Term Incentive Plan (the “LLC Plan”), respectively. The performance award agreements provide that the vesting of restricted incentive units granted thereunder is dependent on the achievement of certain total shareholder return (“TSR”) performance goals relative to the TSR achievement of a peer group of companies (the “Peer Companies”) over the applicable performance period. The performance award agreements contemplate that the Peer Companies for an individual performance award (the “Subject Award”) are the companies comprising the Alerian MLP Index for Master Limited Partnerships (“AMZ”), excluding the Partnership and the Company (collectively, “EnLink”), on the grant date for the Subject Award. The performance units will vest based on the percentile ranking of the average of the Partnership’s and ENLC’s TSR achievement (“EnLink TSR”) for the applicable performance period relative to the TSR achievement of the Peer Companies.
At the end of the vesting period, recipients receive distribution equivalents, if any, with respect to the number of performance units vested. The vesting of units range from zero to 200 percent of the units granted depending on the EnLink TSR as compared to the TSR of the Peer Companies on the vesting date. The fair value of each performance unit is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all performance unit grants made under the plan: (i) a risk-free interest rate based on United States Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of the Partnership's common units and the designated peer group securities; (iii) an estimated ranking of the Partnership among the designated peer group and (iv) the distribution yield. The fair value of the unit on the date of grant is expensed over a vesting period of three years. The following table presents a summary of the grant-date fair values of performance units granted and the related assumptions:
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
%

The following table presents a summary of the Partnership's performance units:
 
 
Three Months Ended 
 March 31, 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)
 
$
4.5

 
 

As of March 31, 2016 there was $4.9 million of unrecognized compensation expense that related to non-vested Partnership performance units. That cost is expected to be recognized over a weighted-average period of 2.2 years.
(d)         EnLink Midstream, LLC Restricted Incentive Units
ENLC restricted incentive units are valued at their fair value at the date of grant, which is equal to the market value of the common units on such date. A summary of the restricted incentive unit activity for the three months ended March 31, 2016 is provided below:
 
 
Three Months Ended 
 March 31, 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
 
1,032,976

 
9.42

Vested*
 
(317,726
)
 
37.03

Forfeited
 
(24,970
)
 
26.85

Non-vested, end of period
 
1,839,173

 
$
20.26

Aggregate intrinsic value, end of period (in millions)
 
$
20.7

 
 


 * Vested units include 90,326 units withheld for payroll taxes paid on behalf of employees.
A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested during the three months ended March 31, 2016 and 2015 are provided below (in millions):
 
 
Three Months Ended 
 March 31,
EnLink Midstream, LLC Restricted Incentive Units:
 
2016
 
2015
Aggregate intrinsic value of units vested
 
$
3.8

 
$
8.3

Fair value of units vested
 
$
11.8

 
$
8.6


As of March 31, 2016, there was $21.9 million of unrecognized compensation costs related to non-vested ENLC restricted incentive units. The cost is expected to be recognized over a weighted average period of 1.9 years.
(e) EnLink Midstream, LLC's Performance Units
In 2016, ENLC granted performance awards under the LLC Plan discussed in Note (c) above. At the end of the vesting period, recipients receive distribution equivalents, if any, with respect to the number of performance units vested. The vesting of units range from zero to 200 percent of the units granted depending on the EnLink TSR as compared to the TSR of the Peer Companies on the vesting date. The fair value of each performance unit is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all performance unit grants made under the plan: (i) a risk-free interest rate based on United States Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of ENLC's common units and the designated peer group securities; (iii) an estimated ranking of ENLC among the designated peer group and (iv) the distribution yield. The fair value of the unit on the date of grant is expensed over a vesting period of three years. The following table presents a summary of the grant-date fair values of performance units granted and the related assumptions:
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
%

The following table presents a summary of the Company's performance units:
 
 
Three Months Ended 
 March 31, 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)
 
$
3.9

 
 

As of March 31, 2016 there was $4.7 million of unrecognized compensation expense that related to non-vested ENLC performance units. That cost is expected to be recognized over a weighted-average period of 2.2 years.
Derivatives
Derivatives
(13) Derivatives
Commodity Swaps
The Partnership manages its exposure to fluctuation in commodity prices by hedging the impact of market fluctuations. Swaps are used to manage and hedge price and location risk related to these market exposures. Swaps are also used to manage margins on offsetting fixed-price purchase or sale commitments for physical quantities of natural gas and NGLs. The Partnership does not designate transactions as cash flow or fair value hedges for hedge accounting treatment under FASB ASC 815. Therefore, changes in the fair value of the Partnership's derivatives are recorded in revenue in the period incurred. In addition, the Partnership's risk management policy does not allow the Partnership to take speculative positions with its derivative contracts.
The Partnership commonly enters into index (float-for-float) or fixed-for-float swaps in order to mitigate its cash flow exposure to fluctuations in the future prices of natural gas, NGLs and crude oil. For natural gas, index swaps are used to protect against the price exposure of daily priced gas versus first-of-month priced gas. They are also used to hedge the basis location price risk resulting from supply and markets being priced on different indices. For natural gas, NGLs, condensate and crude, fixed-for-float swaps are used to protect cash flows against price fluctuations: (1) where the Partnership receives a percentage of liquids as a fee for processing third-party gas or where the Partnership receives a portion of the proceeds of the sales of natural gas and liquids as a fee, (2) in the natural gas processing and fractionation components of its business and (3) where the Partnership is mitigating the price risk for product held in inventory or storage.
The components of gain (loss) on derivative activity in the Condensed Consolidated Statements of Operations relating to commodity swaps are (in millions):
 
Three Months Ended  
 March 31,
 
2016
 
2015
Change in fair value of derivatives
$
(6.0
)
 
$
(3.7
)
Realized gain on derivatives
5.6

 
3.9

    Gain (loss) on derivative activity
$
(0.4
)
 
$
0.2


The fair value of derivative assets and liabilities relating to commodity swaps are as follows (in millions):
 
March 31,
2016
 
December 31,
2015
Fair value of derivative assets — current
$
10.5

 
$
16.8

Fair value of derivative liabilities — current
(3.2
)
 
(2.9
)
Fair value of derivative liabilities — long term

 
(0.1
)
    Net fair value of derivatives
$
7.3

 
$
13.8


The total estimated fair value of derivative contracts of $7.3 million as of March 31, 2016 has a maturity date of less than one year.
Set forth below is the summarized notional volumes and fair value of all instruments held for price risk management purposes and related physical offsets at March 31, 2016. The remaining term of the contracts extend no later than March 2017.
 
 
 
 
 
 
March 31, 2016
Commodity
 
Instruments
 
Unit
 
Volume
 
Fair Value
 
 
 
 
 
 
(In millions)
NGL (short contracts)
 
Swaps
 
Gallons
 
(42.9
)
 
$
8.8

NGL (long contracts)
 
Swaps
 
Gallons
 
17.1

 
(1.8
)
Natural Gas (short contracts)
 
Swaps
 
MMBtu
 
(6.7
)
 
0.8

Natural Gas (long contracts)
 
Swaps
 
MMBtu
 
2.2

 
(0.3
)
Condensate (short contracts)
 
Swaps
 
MMBbls
 
(0.1
)
 
(0.2
)
Total fair value of derivatives
 
 
 
 
 
 
 
$
7.3


On all transactions where the Partnership is exposed to counterparty risk, the Partnership analyzes the counterparty's financial condition prior to entering into an agreement, establishes limits and monitors the appropriateness of these limits on an ongoing basis. The Partnership primarily deals with two types of counterparties, financial institutions and other energy companies, when entering into financial derivatives on commodities. The Partnership has entered into Master International Swaps and Derivatives Association Agreements (“ISDAs”) that allow for netting of swap contract receivables and payables in the event of default by either party. If the Partnership's counterparties failed to perform under existing swap contracts, the Partnership's maximum loss as of March 31, 2016 of $10.5 million would be reduced to $7.3 million due to the offsetting of gross fair value payables against gross fair value receivables as allowed by the ISDAs.
Fair Value Measurements
Fair Value Measurements
(14)      Fair Value Measurements
FASB ASC 820 sets forth a framework for measuring fair value and required disclosures about fair value measurements of assets and liabilities. Fair value under FASB ASC 820 is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, unobservable prices or inputs are used to estimate the current fair value, often using an internal valuation model. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the item being valued.
FASB ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The Partnership’s derivative contracts primarily consist of commodity swap contracts which are not traded on a public exchange. The fair values of commodity swap contracts are determined using discounted cash flow techniques. The techniques incorporate Level 1 and Level 2 inputs for future commodity prices that are readily available in public markets or can be derived from information available in publicly quoted markets. These market inputs are utilized in the discounted cash flow calculation considering the instrument’s term, notional amount, discount rate and credit risk and are classified as Level 2 in hierarchy.
Net liabilities measured at fair value on a recurring basis are summarized below (in millions):
 
March 31, 2016
Level 2
 
December 31, 2015
Level 2
Commodity Swaps*
$
7.3

 
$
13.8

Total
$
7.3

 
$
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.
Fair Value of Financial Instruments
The Partnership has determined the estimated fair value of its financial instruments using available market information and valuation methodologies. Considerable judgment is required to develop the estimates of fair value; thus, the estimates provided below are not necessarily indicative of the amount the Partnership could realize upon the sale or refinancing of such financial instruments (in millions):
 
March 31, 2016
 
December 31, 2015
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
Long-term debt
$
3,204.2

 
$
2,638.3

 
$
3,066.0

 
$
2,585.5

Obligations under capital leases
$
13.4

 
$
12.7

 
$
16.7

 
$
15.6


The carrying amounts of the Partnership’s cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these assets and liabilities.
The Partnership had $543.0 million and $414.0 million in outstanding borrowings under its revolving credit facility as of March 31, 2016 and December 31, 2015, respectively. We had $9.3 million in outstanding borrowings under our credit facility as of March 31, 2016. As borrowings under either credit facility accrue interest under floating interest rate structures, the carrying value of such indebtedness approximates fair value for the amounts outstanding under the applicable credit facility. As of March 31, 2016 and December 31, 2015, the Partnership had total borrowings of $2.7 billion under senior unsecured notes maturing between 2019 and 2045 with fixed interest rates ranging from 2.7% to 7.1%. The fair value of all senior unsecured notes as of March 31, 2016 and December 31, 2015 was based on Level 2 inputs from third-party market quotations.  The fair value of obligations under capital leases was calculated using Level 2 inputs from third-party banks.
Commitments and Contingencies
Commitments and Contingencies Disclosure
(15) Commitments and Contingencies
(a) Severance and Change in Control Agreements
Certain members of management of the Partnership are parties to severance and change of control agreements with EnLink Midstream Operating, LP. The severance and change in control agreements provide those individuals with severance payments in certain circumstances and prohibit such individual from, among other things, competing with the General Partner or its affiliates during his or her employment. In addition, the severance and change of control agreements prohibit subject individuals from, among other things, disclosing confidential information about the General Partner or interfering with a client or customer of the General Partner or its affiliates, in each case during his or her employment and for certain periods (including indefinite periods) following the termination of such person’s employment.
(b) Environmental Issues
The operation of pipelines, plants and other facilities for the gathering, processing, transmitting or disposing of natural gas, NGLs, crude oil, condensate, brine and other products is subject to stringent and complex laws and regulations pertaining to health, safety and the environment. As an owner or operator of these facilities, the Partnership must comply with United States laws and regulations at the federal, state and local levels that relate to air and water quality, hazardous and solid waste management and disposal, and other environmental matters. The cost of planning, designing, constructing and operating pipelines, plants, and other facilities must incorporate compliance with environmental laws and regulations and safety standards. Failure to comply with these laws and regulations may trigger a variety of administrative, civil and potentially criminal enforcement measures, including citizen suits, which can include the assessment of monetary penalties, the imposition of remedial requirements, and the issuance of injunctions or restrictions on operation. Management believes that, based on currently known information, compliance with these laws and regulations will not have a material adverse effect on the Partnership's results of operations, financial condition or cash flows. In February 2016, a spill occurred at the Partnership's Kill Buck Station in the Ohio operations.  State and federal agencies were notified and clean-up response efforts were promptly executed, which significantly lessened the impact of the spill.  On April 7, 2016, the state agency determined that the clean-up recovery efforts were completed and has internally transitioned monitoring to their water quality division.  The Partnership does not anticipate a material fine or penalty by either the state or federal agencies.  Additionally, although the spill that previously occurred in the Partnership's West Virginia operations in the third quarter of 2015 is still pending, the Partnership does not believe that any fine or penalty that may be issued will be material to their operations.  Lastly, the Partnership continues to work with Pipeline and Hazardous Materials Safety Administration regarding the notice of potential violation discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015.
(c) Litigation Contingencies
The Partnership is involved in various litigation and administrative proceedings arising in the normal course of business. In the opinion of management, any liabilities that may result from these claims would not individually or in the aggregate have a material adverse effect on its financial position, results of operations or cash flows. 
At times, the Partnership’s subsidiaries acquire pipeline easements and other property rights by exercising rights of eminent domain and common carrier. As a result, from time to time the Partnership (or its subsidiaries) is a party to a number of lawsuits under which a court will determine the value of pipeline easements or other property interests obtained by the Partnership’s subsidiaries by condemnation. Damage awards in these suits should reflect the value of the property interest acquired and the diminution in the value of the remaining property owned by the landowner. However, some landowners have alleged unique damage theories to inflate their damage claims or assert valuation methodologies that could result in damage awards in excess of the amounts anticipated. Although it is not possible to predict the ultimate outcomes of these matters, the Partnership does not expect that awards in these matters will have a material adverse impact on its consolidated results of operations, financial condition, or cash flows.
The Partnership (or its subsidiaries) is defending lawsuits filed by owners of property located near processing facilities or compression facilities constructed by the Partnership as part of its systems. The suits generally allege that the facilities create a private nuisance and have damaged the value of surrounding property. Claims of this nature have arisen as a result of the industrial development of natural gas gathering, processing and treating facilities in urban and occupied rural areas. 
In July 2013, the Board of Commissioners for the Southeast Louisiana Flood Protection Authority for New Orleans and surrounding areas filed a lawsuit against approximately 100 energy companies, seeking, among other relief, restoration of wetlands allegedly lost due to historic industry operations in those areas. The suit was filed in Louisiana state court in New Orleans, but was removed to the United States District Court for the Eastern District of Louisiana.  The amount of damages is unspecified. The Partnership's subsidiary, EnLink LIG, LLC, is one of the named defendants as the owner of pipelines in the area.  On February 13, 2015, the court granted defendants’ joint motion to dismiss and dismissed the plaintiff’s claims with prejudice. Plaintiffs have appealed the matter to the United States Court of Appeals for the Fifth Circuit. The Partnership intends to vigorously defend the case. The success of the plaintiffs' appeal as well as the Partnership's costs and legal exposure, if any, related to the lawsuit are not currently determinable.
The Partnership owns and operates a high-pressure pipeline and underground natural gas and NGL storage reservoirs and associated facilities near Bayou Corne, Louisiana. In August 2012, a large sinkhole formed in the vicinity of this pipeline and underground storage reservoirs. The Partnership is seeking to recover its losses from responsible parties. The Partnership has sued Texas Brine Company, LLC (“Texas Brine”), the operator of a failed cavern in the area and its insurers, seeking recovery for these losses.  The Partnership has also sued Occidental Chemical Company and Legacy Vulcan Corp. f/k/a Vulcan Materials Company, two Chlor-Alkali plant operators that participated in Texas Brine’s operational decisions regarding the mining of the failed cavern. The Partnership also filed a claim with its insurers, which the Partnership's insurers denied. The Partnership disputed the denial and has also sued its insurers. In August 2014, the Partnership received a partial settlement with respect to the Texas Brine claims in the amount of $6.1 million but additional claims remain outstanding. The Partnership cannot give assurance that the Partnership will be able to fully recover its losses through insurance recovery or claims against responsible parties.
In June 2014, a group of landowners in Assumption Parish, Louisiana added a subsidiary of the Partnership, EnLink Processing Services, LLC, as a defendant in a pending lawsuit they had filed against Texas Brine, Occidental Chemical Corporation, and Vulcan Materials Company relating to claims arising from the Bayou Corne sinkhole. The suit is pending in the 23rd Judicial Court, Assumption Parish, Louisiana. Although plaintiffs’ claims against the other defendants have been pending since October 2012, plaintiffs are now alleging that EnLink Processing Services, LLC’s negligence also contributed to the formation of the sinkhole. The amount of damages is unspecified. The validity of the causes of action, as well as the Partnership's costs and legal exposure, if any, related to the lawsuit are not currently determinable. The Partnership intends to vigorously defend the case. The Partnership has also filed a claim for defense and indemnity with its insurers.
Segment Information
Segment Information
(16) Segment Information
Identification of the majority of the Company's operating segments is based principally upon geographic regions served.  The Company’s reportable segments consist of the following: natural gas gathering, processing, transmission and fractionation operations located in north Texas, south Texas and the Permian Basin in west Texas (“Texas”), the pipelines and processing plants located in Louisiana and NGL assets located in south Louisiana (“Louisiana”), natural gas gathering and processing operations located throughout Oklahoma (“Oklahoma”) and crude rail, truck, pipeline and barge facilities in west Texas, south Texas, Louisiana and Ohio River Valley (“Crude and Condensate”). Operating activity for intersegment eliminations is shown in the corporate segment.  The Company’s sales are derived from external domestic customers.
Corporate expenses include general partnership expenses associated with managing all reportable operating segments. Corporate assets consist primarily of cash, property and equipment, including software, for general corporate support, debt financing costs and investments in HEP and GCF. The Company evaluates the performance of its operating segments based on operating revenues and segment profits.
Summarized financial information concerning the Company’s reportable segments is shown in the following tables:
 
Texas
 
Louisiana
 
Oklahoma
 
Crude and Condensate
 
Corporate
 
Totals
 
(In millions)
Three Months Ended March 31, 2016
 

 
 

 
 

 
 

 
 

 
 

Product sales
$
62.5

 
$
287.7

 
$
7.8

 
$
230.5

 
$

 
$
588.5

Product sales-affiliates
37.3

 
7.4

 
10.6

 
0.2

 
(31.0
)
 
24.5

Midstream services
27.4

 
55.2

 
15.1

 
16.8

 

 
114.5

Midstream services-affiliates
110.3

 
12.7

 
45.0

 
5.2

 
(10.6
)
 
162.6

Cost of sales
(91.3
)
 
(302.1
)
 
(19.3
)
 
(215.1
)
 
41.6

 
(586.2
)
Operating expenses
(39.3
)
 
(23.3
)
 
(12.8
)
 
(22.8
)
 

 
(98.2
)
Loss on derivative activity

 

 

 

 
(0.4
)
 
(0.4
)
Segment profit
$
106.9

 
$
37.6

 
$
46.4

 
$
14.8

 
$
(0.4
)
 
$
205.3

Depreciation and amortization
$
(46.2
)
 
$
(29.3
)
 
$
(33.8
)
 
$
(10.4
)
 
$
(2.2
)
 
$
(121.9
)
Impairments
$
(473.1
)
 
$

 
$

 
$
(93.2
)
 
$
(307.0
)
 
$
(873.3
)
Goodwill
$
230.4

 
$

 
$
190.3

 
$

 
$
1,119.9

 
$
1,540.6

Capital expenditures
$
23.3

 
$
22.7

 
$
69.2

 
$
3.3

 
$
1.9

 
$
120.4

Three Months Ended March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Product sales
$
49.8

 
$
372.2

 
$

 
$
248.7

 
$

 
$
670.7

Product sales-affiliates
25.9

 
7.1

 
3.7

 

 
(20.5
)
 
16.2

Midstream services
19.6

 
57.9

 
10.7

 
14.2

 

 
102.4

Midstream services-affiliates
115.5

 
0.1

 
31.2

 
4.2

 

 
151.0

Cost of sales
(67.2
)
 
(370.9
)
 
(5.1
)
 
(234.7
)
 
20.5

 
(657.4
)
Operating expenses
(47.0
)
 
(24.3
)
 
(7.0
)
 
(20.1
)
 

 
(98.4
)
Gain on derivative activity

 

 

 

 
0.2

 
0.2

Segment profit
$
96.6

 
$
42.1

 
$
33.5

 
$
12.3

 
$
0.2

 
$
184.7

Depreciation and amortization
$
(36.4
)
 
$
(27.5
)
 
$
(13.5
)
 
$
(12.4
)
 
$
(1.5
)
 
$
(91.3
)
Goodwill
$
1,168.2

 
$
786.8

 
$
190.3

 
$
137.8

 
$
1,426.9

 
$
3,710.0

Capital expenditures
$
73.5

 
$
15.2

 
$
5.2

 
$
77.6

 
$
4.2

 
$
175.7



The table below presents information about segment assets as of March 31, 2016 and December 31, 2015:
 
March 31,
2016
 
December 31,
2015
Segment Identifiable Assets:
(In millions)
Texas
$
3,175.4

 
$
3,709.5

Louisiana
2,290.6

 
2,309.3

Oklahoma
2,380.7

 
873.4

Crude and Condensate
798.1

 
898.0

Corporate
1,421.5

 
1,751.1

Total identifiable assets
$
10,066.3

 
$
9,541.3


The following table reconciles the segment profits reported above to the operating income (loss) as reported in the Condensed Consolidated Statements of Operations (in millions):

Three Months Ended  
 March 31,
 
2016
 
2015
Segment profits
$
205.3

 
$
184.7

General and administrative expenses
(35.1
)
 
(42.9
)
Gain on disposition of assets
0.2

 

Depreciation and amortization
(121.9
)
 
(91.3
)
Impairments
(873.3
)
 

Operating income (loss)
$
(824.8
)
 
$
50.5

Supplemental Cash Flow Information
Cash Flow, Supplemental Disclosures
(17) Supplemental Cash Flow Information
The following schedule summarizes non-cash financing activities for the period presented:
 
 
Three Months Ended 
 March 31,
 
 
2016
 
2015
 
 
(In millions)
Non-cash financing activities:
 
 
 
 
Non-cash issuance of common units (1)
 
$
215.1

 
$

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 three months ended March 31, 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 three months ended March 31, 2015, non-cash common units and Class C Common Units were issued by the Partnership as partial consideration for the Coronado acquisition.
(3) We 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.
Other Information
Other Liabilities Disclosure [Text Block]
(18) Other Information
The following table presents additional detail for certain balance sheet captions.
Other Current Liabilities
Other current liabilities consisted of the following:
 
March 31,
2016
 
December 31,
2015
 
(in millions)
Accrued interest
$
53.3

 
$
23.2

Accrued wages and benefits, including taxes
7.5

 
27.7

Accrued ad valorem taxes
12.5

 
27.0

Capital expenditure accruals
32.0

 
22.3

Onerous performance obligations
16.6

 
17.0

Other
65.3

 
57.6

Other current liabilities
$
187.2

 
$
174.8

Significant Accounting Policies (Policies)
(a) Basis of Presentation
The accompanying condensed consolidated financial statements are prepared in accordance with the instructions to Form 10-Q, are unaudited and do not include all the information and disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of results of operations for a full year. All significant intercompany balances and transactions have been eliminated in consolidation.
During the first half of 2015, the Partnership acquired assets from Devon through drop down transactions. Due to our control of the Partnership through our ownership and control of the General Partner and Devon's control of us through its ownership of our managing member, the acquisition from Devon was considered a transfer of net assets between entities under common control. As such, the Company was required to recast its historical financial statements to include the activities of such assets from the date that these entities were under common control. The condensed consolidated financial statements for periods prior to the Partnership’s acquisition of the assets from Devon have been prepared from Devon's historical cost-basis accounts for the acquired assets and may not necessarily be indicative of the actual results of operations that would have occurred if the Partnership had owned the acquired assets during the periods reported. Net income attributable to the assets acquired from Devon for periods prior to the Partnership’s acquisition is allocated to “Devon investment interest in net income” on the Company's Condensed Consolidated Statements of Operations.
(b) Recent Accounting Pronouncements
In January 2016, we adopted ASU 2015-03, Interest - Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability and requires retrospective application.  The application of this new accounting guidance resulted in the reclassification of $23.8 million of debt issuance costs from “Other Assets, Net” to “Long-term debt” in our accompanying Condensed Consolidated Balance Sheet as of December 31, 2015.
In January 2016, we adopted ASU 2015-17, Balance Sheet Classification of Deferred Taxes on a prospective basis. This new standard required that deferred tax assets and liabilities be classified as noncurrent in our Condensed Consolidated Balance Sheet as of March 31, 2016.
In January 2016, we adopted ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, which eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated.
In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation – Stock Compensation (“ASU 2016-09”). First, the new standard will require all of the tax effects related to share-based payments at settlement (or expiration) to be recorded through the income statement, and is required to be applied prospectively. Second, the new standard also allows entities to withhold taxes of an amount up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award, and is required to be adopted using a modified retrospective approach. Third, under the ASU, forfeitures can be estimated, as currently required, or recognized when they occur. If elected, the change to recognize forfeitures when they occur must be adopted using a modified retrospective approach. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016 including interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact this standard will have on our condensed consolidated financial statements and related disclosures.
In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (“ASU 2016-08”). The new standard retained the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer, and revised and clarified the indicators to evaluate when making this determination. ASU 2016-08 has the same effective date and transition requirements as the new revenue standard, which is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. Early application is permitted for annual reporting periods beginning after December 15, 2016. The update will have no impact on our condensed consolidated financial statements or related disclosures.
In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). The new standard eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. Investors should add the cost of acquiring the additional interest in the investee (if any) to the current basis of their previously held interest. ASU 2016-07 is effective for annual reporting periods beginning after December 15, 2016 including interim periods within those annual periods. Early adoption is permitted. We do not expect this standard to impact our condensed consolidated financial statements and related disclosures.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) - Amendments to the FASB Accounting Standards Codification (“ASU 2016-02”). Lessees will need to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance is replaced with a new model applicable to both lessees and lessors. Additional revisions have been made to embedded leases, reassessment requirements, and lease term assessments including variable lease payment, discount rate, and lease incentives. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018 including interim periods within those annual periods. Early adoption is permitted, and is required to be adopted using a modified retrospective transition. We are currently evaluating the impact this standard will have on our condensed consolidated financial statements and related disclosures.
In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). Under this new standard, the FASB issued new guidance related to accounting for unconsolidated affiliate investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. ASU 2016-01 is effective for annual reporting periods beginning after December 15, 2017 including interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact this standard will have on our condensed consolidated financial statements and related disclosures.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 will replace existing revenue recognition requirements in GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Partnership expects to be entitled in exchange for transferring goods or services to a customer. The new standard will also require significantly expanded disclosures regarding the qualitative and quantitative information of the Partnership's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and is to be applied retrospectively, with early application permitted for annual reporting periods beginning after December 15, 2016. We are currently evaluating the impact the pronouncement will have on our condensed consolidated financial statements and related disclosures.
Acquisition (Table)
Pro Forma Information
The following unaudited pro forma condensed financial information for the three months ended March 31, 2015 gives effect to the January 2015 LPC acquisition, March 2015 Coronado acquisition, October 2015 Matador acquisition, November 2015 Deadwood acquisition and January 2016 Tall Oak acquisition as if they had occurred on January 1, 2015. The unaudited pro forma condensed financial information has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the transactions taken place on the dates indicated and is not intended to be a projection of future results. Pro forma financial information associated with the acquisitions is reflected below.
 
 
Three Months Ended
March 31,
 
 
2015
 
 
(in millions)

Pro forma total revenues
 
$
1,067.6

Pro forma net income
 
$
3.8

Pro forma net income attributable to EnLink Midstream, LLC
 
$
10.6

Pro forma net income per common unit:
 
 
Basic
 
$
0.06

Diluted
 
$
0.06

The following table presents the consideration we paid and the fair value of the identified assets received and liabilities assumed at the acquisition date. The purchase price allocation has been prepared on a preliminary basis pending receipt of a final valuation report and is subject to change.
Consideration (in millions):
 
 
Cash
 
$
805.9

Issuance of common units
 
215.1

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
 
$
1,441.9

 
 
 
Purchase Price Allocation (in millions):
 
 
Assets acquired:
 
 
Current assets (including $6.8 million in cash)
 
$
20.2

Property, plant and equipment
 
423.2

Intangibles
 
1,034.3

Liabilities assumed:
 
 
Current liabilities
 
(35.8
)
Total identifiable net assets
 
$
1,441.9

The following table presents the fair value of the identified assets received and liabilities assumed at the acquisition date. The purchase price allocation has been prepared on a preliminary basis pending receipt of a final valuation report and is subject to change.
Purchase Price Allocation (in millions):
 
 
Assets acquired:
 
 
Current assets
 
$
1.1

Property, plant and equipment
 
36.2

Intangibles
 
98.8

Goodwill
 
9.1

Liabilities assumed:
 
 
Current liabilities
 
(3.9
)
Total identifiable net assets
 
$
141.3

Goodwill and Intangible Assets (Tables)
The table below provides a summary of our change in carrying amount of goodwill, by assigned reporting unit (in millions):
 
Texas
 
Louisiana
 
Oklahoma
 
Crude and Condensate
 
Corporate
 
Totals
Three Months Ended March 31, 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
)
Balance, end of period
$
230.4

 
$


$
190.3


$


$
1,119.9


$
1,540.6

The following table represents the Partnership's change in carrying value of intangible assets (in millions):
 
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Three Months Ended March 31, 2016
 
 
 
 
 
 
Customer relationships, beginning of period
 
$
744.5

 
$
(54.6
)
 
$
689.9

Acquisitions
 
1,034.3

 

 
1,034.3

Amortization expense
 

 
(27.5
)
 
(27.5
)
Customer relationships, end of period
 
$
1,778.8

 
$
(82.1
)
 
$
1,696.7

The following table summarizes the Partnership's estimated aggregate amortization expense for the next five years (in millions):
2016 (remaining)
$
86.3

2017
115.1

2018
115.1

2019
115.1

2020
115.1

Thereafter
1,150.0

Total
$
1,696.7

Long-Term Debt (Tables)
Indebtedness Table
As of March 31, 2016 and December 31, 2015, long-term debt consisted of the following (in millions):
 
March 31,
2016
 
December 31,
2015
Partnership credit facility (due 2020), interest based on Prime and/or LIBOR plus an applicable margin, interest rate at March 31, 2016 and December 31, 2015 was 2.2% and 1.8%, respectively
$
543.0

 
$
414.0

Company credit facility (due 2019), interest based on LIBOR plus an applicable margin, interest rate at March 31, 2016 was 4.25%
9.3

 

The Partnership's senior unsecured notes (due 2019), net of discount of $0.4 million at March 31, 2016 and $0.4 million at December 31, 2015, which bear interest at the rate of 2.70%
399.6

 
399.6

The Partnership's senior unsecured notes (due 2022), including a premium of $18.2 million at March 31, 2016 and $18.9 million at December 31, 2015, which bear interest at the rate of 7.125%
180.7

 
181.4

The Partnership's senior unsecured notes (due 2024), net of premium of $2.8 million at March 31, 2016 and $2.9 million at December 31, 2015, which bear interest at the rate of 4.40%
552.8

 
552.9

The Partnership's senior unsecured notes (due 2025), net of discount of $1.2 million at March 31, 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 $0.3 million at March 31, 2016 and $0.2 million at December 31, 2015, which bear interest at the rate of 5.60%
349.7

 
349.8

The Partnership's senior unsecured notes (due 2045), net of discount of $6.8 million at March 31, 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 $6.0 million at March 31, 2016 and $5.1 million at December 31, 2015.
(23.1
)
 
(23.8
)
Other debt
0.2

 
0.2

Debt classified as long-term
$
3,204.2

 
$
3,066.0

Income Tax (Tables)
Schedule of Components of Income Tax Expense (Benefit)
Income taxes included in the condensed consolidated financial statements were as follows for the periods presented:
 
 
Three Months Ended  
 March 31,
 
 
2016
 
2015
 
 
(in millions)
ENLC income tax expense
 
$
0.2

 
$
10.6

       Total income tax expense
 
$
0.2

 
$
10.6

The following schedule reconciles total income tax expense and the amount computed by applying the statutory U.S. federal tax rate to income before income taxes:
 
 
Three Months Ended  
 March 31,
 
 
2016
 
2015
 
 
(in millions)
Tax expense (benefit) at statutory federal rate (35%)
 
$
(160.5
)
 
$
9.0

State income taxes expense (benefit), net of federal tax benefit
 
(14.9
)
 
0.6

Income taxes from partnership
 
1.0

 
1.2

Non-deductible expense related to asset impairment
 
173.9

 

Other
 
0.7

 
(0.2
)
       Total income tax expense
 
$
0.2

 
$
10.6

Certain Provision of the Partnership Agreement (Tables)
A summary of the Partnership's distribution activity relating to the common units for the three months ended March 31, 2016 is provided below:
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
The net income allocated to the General Partner is as follows for the three months ended March 31, 2016 and 2015 (in millions):
 
Three Months Ended
March 31,
 
2016
 
2015
Income allocation for incentive distributions
$
13.8

 
$
8.8

Unit-based compensation attributable to ENLC’s restricted units
(4.0
)
 
(7.0
)
General Partner share of net income (loss)
(2.4
)
 
0.1

General Partner interest in drop down transactions

 
24.6

General Partner interest in net income
$
7.4

 
$
26.5

Earnings per Unit and Dilution Computations (Tables)
The following table reflects the computation of basic and diluted earnings per unit for the three months ended March 31, 2016 and 2015 (in millions, except per unit amounts):
 
Three Months Ended
March 31,
 
2016
 
2015
EnLink Midstream, LLC interest in net income (loss)
$
(457.6
)
 
$
16.3

Distributed earnings allocated to:
 
 
 
Common units (1)
$
45.6

 
$
40.2

Unvested restricted units (1)
0.5

 
0.2

Total distributed earnings
$
46.1

 
$
40.4

Undistributed loss allocated to:
 
 
 
Common units
$
(498.5
)
 
$
(24.0
)
Unvested restricted units
(5.2
)
 
(0.1
)
Total undistributed loss
$
(503.7
)
 
$
(24.1
)
Net income (loss) allocated to:
 
 
 
Common units
$
(452.9
)
 
$
16.2

Unvested restricted units
(4.7
)
 
0.1

Total net income (loss)
$
(457.6
)
 
$
16.3

Total basic and diluted net income (loss) per unit:
 
 
 
Basic
$
(2.56
)
 
$
0.10

Diluted
$
(2.56
)
 
$
0.10

(1)
Three months ended March 31, 2016 and 2015 represents a declared distribution of $0.255 per unit payable May 13, 2016 and a distribution of $0.245 per unit paid on May 15, 2015.
The following are the unit amounts used to compute the basic and diluted earnings per unit for the periods presented (in millions):
 
Three Months Ended
March 31,
 
2016
 
2015
Basic and diluted earnings per unit:
 
 
 
Weighted average common units outstanding
178.7

 
164.2

Diluted weighted average units outstanding:
 
 
 
Weighted average basic common units outstanding
178.7

 
164.2

Dilutive effect of restricted units issued

 
0.3

Total weighted average diluted common units outstanding
178.7

 
164.5

Asset Retirement Obligation (Table)
Schedule of Change in Asset Retirement Obligation
The schedule below summarizes the changes in the Partnership’s asset retirement obligation:
 
Three Months Ended
March 31,
 
2016
 
2015
 
(in millions)
Beginning asset retirement obligations
$
14.0

 
$
20.6

Revisions to existing liabilities
(0.4
)
 
(3.9
)
Accretion
0.1

 
0.1

    Liabilities settled
(0.6
)
 
(3.2
)
Ending asset retirement obligations
$
13.1

 
$
13.6

Investment in Unconsolidated Affiliate (Tables)
Equity Method Investments
The following table shows the activity related to the Partnership’s investment in unconsolidated affiliates for the periods indicated (in millions):
 
Gulf Coast Fractionators
 
Howard Energy Partners
 
Total
Three months ended
 
 
 
 
 
March 31, 2016
 
 
 
 
 
Contributions
$

 
$
7.1

 
$
7.1

Distributions
$
3.0

 
$
6.2

 
$
9.2

Equity in net loss
$
(1.7
)
 
$
(0.7
)
 
$
(2.4
)
 
 
 
 
 
 
March 31, 2015
 
 
 
 
 
Distributions
$
2.7

 
$
4.1

 
$
6.8

Equity in net income
$
3.3

 
$
0.4

 
$
3.7

The following table shows the balances related to the Partnership’s investment in unconsolidated affiliates for the periods indicated (in millions):
 
March 31,
2016
 
December 31,
2015
Gulf Coast Fractionators
$
47.9

 
$
52.6

Howard Energy Partners
221.9

 
221.7

Total investment in unconsolidated affiliates
$
269.8

 
$
274.3

Employee Incentive Plans (Tables)
The following table presents a summary of the grant-date fair values of performance units granted and the related assumptions:
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
%
The following table presents a summary of the grant-date fair values of performance units granted and the related assumptions:
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
%
The following table presents a summary of the Company's performance units:
 
 
Three Months Ended 
 March 31, 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)
 
$
3.9

 
 
The following table presents a summary of the Partnership's performance units:
 
 
Three Months Ended 
 March 31, 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)
 
$
4.5

 
 
The Partnership and ENLC each have similar unit-based compensation payment plans for officers and employees, which are described below.  Unit-based compensation associated with ENLC's unit-based compensation plan awarded to officers and employees of the Partnership is recorded by the Partnership since ENLC has no substantial or managed operating activities other than its interests in the Partnership and TOM. Amounts recognized in the condensed consolidated financial statements with respect to these plans are as follows (in millions): 
 
Three Months Ended
March 31,
 
2016
 
2015
Cost of unit-based compensation charged to general and administrative expense
$
6.3

 
$
12.0

Cost of unit-based compensation charged to operating expense
1.7

 
1.9

    Total amount charged to income
$
8.0

 
$
13.9

Interest of non-controlling partners in unit-based compensation
$
2.9

 
$
5.4

Amount of related income tax benefit recognized in income
$
1.9

 
$
3.2

A summary of the restricted incentive unit activity for the three months ended March 31, 2016 is provided below:
 
 
Three Months Ended 
 March 31, 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
 
1,032,976

 
9.42

Vested*
 
(317,726
)
 
37.03

Forfeited
 
(24,970
)
 
26.85

Non-vested, end of period
 
1,839,173

 
$
20.26

Aggregate intrinsic value, end of period (in millions)
 
$
20.7

 
 


 * Vested units include 90,326 units withheld for payroll taxes paid on behalf of employees.
A summary of the restricted incentive unit activity for the three months ended March 31, 2016 is provided below:
 
 
Three Months Ended 
 March 31, 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
 
1,041,022

 
10.01

Vested*
 
(294,460
)
 
30.40

Forfeited
 
(27,797
)
 
24.12

Non-vested, end of period
 
1,972,494

 
$
19.21

Aggregate intrinsic value, end of period (in millions)
 
$
23.8

 
 


 * Vested units include 84,429 units withheld for payroll taxes paid on behalf of employees.
A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested during the three months ended March 31, 2016 and 2015 are provided below (in millions):
 
 
Three Months Ended 
 March 31,
EnLink Midstream, LLC Restricted Incentive Units:
 
2016
 
2015
Aggregate intrinsic value of units vested
 
$
3.8

 
$
8.3

Fair value of units vested
 
$
11.8

 
$
8.6

A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested during the three months ended March 31, 2016 and 2015 are provided below (in millions):


Three Months Ended  
 March 31,
EnLink Midstream Partners, LP Restricted Incentive Units:

2016
 
2015
Aggregate intrinsic value of units vested

$
3.7

 
$
6.8

Fair value of units vested

$
9.0

 
$
7.0

Derivatives (Tables)
The components of gain (loss) on derivative activity in the Condensed Consolidated Statements of Operations relating to commodity swaps are (in millions):
 
Three Months Ended  
 March 31,
 
2016
 
2015
Change in fair value of derivatives
$
(6.0
)
 
$
(3.7
)
Realized gain on derivatives
5.6

 
3.9

    Gain (loss) on derivative activity
$
(0.4
)
 
$
0.2

The fair value of derivative assets and liabilities relating to commodity swaps are as follows (in millions):
 
March 31,
2016
 
December 31,
2015
Fair value of derivative assets — current
$
10.5

 
$
16.8

Fair value of derivative liabilities — current
(3.2
)
 
(2.9
)
Fair value of derivative liabilities — long term

 
(0.1
)
    Net fair value of derivatives
$
7.3

 
$
13.8

Set forth below is the summarized notional volumes and fair value of all instruments held for price risk management purposes and related physical offsets at March 31, 2016. The remaining term of the contracts extend no later than March 2017.
 
 
 
 
 
 
March 31, 2016
Commodity
 
Instruments
 
Unit
 
Volume
 
Fair Value
 
 
 
 
 
 
(In millions)
NGL (short contracts)
 
Swaps
 
Gallons
 
(42.9
)
 
$
8.8

NGL (long contracts)
 
Swaps
 
Gallons
 
17.1

 
(1.8
)
Natural Gas (short contracts)
 
Swaps
 
MMBtu
 
(6.7
)
 
0.8

Natural Gas (long contracts)
 
Swaps
 
MMBtu
 
2.2

 
(0.3
)
Condensate (short contracts)
 
Swaps
 
MMBbls
 
(0.1
)
 
(0.2
)
Total fair value of derivatives
 
 
 
 
 
 
 
$
7.3

Fair Value Measurements (Tables)
Net liabilities measured at fair value on a recurring basis are summarized below (in millions):
 
March 31, 2016
Level 2
 
December 31, 2015
Level 2
Commodity Swaps*
$
7.3

 
$
13.8

Total
$
7.3

 
$
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.
Considerable judgment is required to develop the estimates of fair value; thus, the estimates provided below are not necessarily indicative of the amount the Partnership could realize upon the sale or refinancing of such financial instruments (in millions):
 
March 31, 2016
 
December 31, 2015
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
Long-term debt
$
3,204.2

 
$
2,638.3

 
$
3,066.0

 
$
2,585.5

Obligations under capital leases
$
13.4

 
$
12.7

 
$
16.7

 
$
15.6

Segment Information (Tables)
Summarized financial information concerning the Company’s reportable segments is shown in the following tables:
 
Texas
 
Louisiana
 
Oklahoma
 
Crude and Condensate
 
Corporate
 
Totals
 
(In millions)
Three Months Ended March 31, 2016
 

 
 

 
 

 
 

 
 

 
 

Product sales
$
62.5

 
$
287.7

 
$
7.8

 
$
230.5

 
$

 
$
588.5

Product sales-affiliates
37.3

 
7.4

 
10.6

 
0.2

 
(31.0
)
 
24.5

Midstream services
27.4

 
55.2

 
15.1

 
16.8

 

 
114.5

Midstream services-affiliates
110.3

 
12.7

 
45.0

 
5.2

 
(10.6
)
 
162.6

Cost of sales
(91.3
)
 
(302.1
)
 
(19.3
)
 
(215.1
)
 
41.6

 
(586.2
)
Operating expenses
(39.3
)
 
(23.3
)
 
(12.8
)
 
(22.8
)
 

 
(98.2
)
Loss on derivative activity

 

 

 

 
(0.4
)
 
(0.4
)
Segment profit
$
106.9

 
$
37.6

 
$
46.4

 
$
14.8

 
$
(0.4
)
 
$
205.3

Depreciation and amortization
$
(46.2
)
 
$
(29.3
)
 
$
(33.8
)
 
$
(10.4
)
 
$
(2.2
)
 
$
(121.9
)
Impairments
$
(473.1
)
 
$

 
$

 
$
(93.2
)
 
$
(307.0
)
 
$
(873.3
)
Goodwill
$
230.4

 
$

 
$
190.3

 
$

 
$
1,119.9

 
$
1,540.6

Capital expenditures
$
23.3

 
$
22.7

 
$
69.2

 
$
3.3

 
$
1.9

 
$
120.4

Three Months Ended March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Product sales
$
49.8

 
$
372.2

 
$

 
$
248.7

 
$

 
$
670.7

Product sales-affiliates
25.9

 
7.1

 
3.7

 

 
(20.5
)
 
16.2

Midstream services
19.6

 
57.9

 
10.7

 
14.2

 

 
102.4

Midstream services-affiliates
115.5

 
0.1

 
31.2

 
4.2

 

 
151.0

Cost of sales
(67.2
)
 
(370.9
)
 
(5.1
)
 
(234.7
)
 
20.5

 
(657.4
)
Operating expenses
(47.0
)
 
(24.3
)
 
(7.0
)
 
(20.1
)
 

 
(98.4
)
Gain on derivative activity

 

 

 

 
0.2

 
0.2

Segment profit
$
96.6

 
$
42.1

 
$
33.5

 
$
12.3

 
$
0.2

 
$
184.7

Depreciation and amortization
$
(36.4
)
 
$
(27.5
)
 
$
(13.5
)
 
$
(12.4
)
 
$
(1.5
)
 
$
(91.3
)
Goodwill
$
1,168.2

 
$
786.8

 
$
190.3

 
$
137.8

 
$
1,426.9

 
$
3,710.0

Capital expenditures
$
73.5

 
$
15.2

 
$
5.2

 
$
77.6

 
$
4.2

 
$
175.7

The table below presents information about segment assets as of March 31, 2016 and December 31, 2015:
 
March 31,
2016
 
December 31,
2015
Segment Identifiable Assets:
(In millions)
Texas
$
3,175.4

 
$
3,709.5

Louisiana
2,290.6

 
2,309.3

Oklahoma
2,380.7

 
873.4

Crude and Condensate
798.1

 
898.0

Corporate
1,421.5

 
1,751.1

Total identifiable assets
$
10,066.3

 
$
9,541.3

The following table reconciles the segment profits reported above to the operating income (loss) as reported in the Condensed Consolidated Statements of Operations (in millions):

Three Months Ended  
 March 31,
 
2016
 
2015
Segment profits
$
205.3

 
$
184.7

General and administrative expenses
(35.1
)
 
(42.9
)
Gain on disposition of assets
0.2

 

Depreciation and amortization
(121.9
)
 
(91.3
)
Impairments
(873.3
)
 

Operating income (loss)
$
(824.8
)
 
$
50.5

Supplemental Cash Flow Information (Tables)
Schedule of Cash Flow, Supplemental Disclosures
The following schedule summarizes non-cash financing activities for the period presented:
 
 
Three Months Ended 
 March 31,
 
 
2016
 
2015
 
 
(In millions)
Non-cash financing activities:
 
 
 
 
Non-cash issuance of common units (1)
 
$
215.1

 
$

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 three months ended March 31, 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 three months ended March 31, 2015, non-cash common units and Class C Common Units were issued by the Partnership as partial consideration for the Coronado acquisition.
(3) We 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.
Other Information (Tables)
Other Current Liabilities [Table Text Block]
The following table presents additional detail for certain balance sheet captions.
Other Current Liabilities
Other current liabilities consisted of the following:
 
March 31,
2016
 
December 31,
2015
 
(in millions)
Accrued interest
$
53.3

 
$
23.2

Accrued wages and benefits, including taxes
7.5

 
27.7

Accrued ad valorem taxes
12.5

 
27.0

Capital expenditure accruals
32.0

 
22.3

Onerous performance obligations
16.6

 
17.0

Other
65.3

 
57.6

Other current liabilities
$
187.2

 
$
174.8

Organization and Summary of Significant Agreements (Details Textuals)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2016
ENLC [Member]
Mar. 31, 2016
Tall Oak [Member]
ENLC [Member]
Jan. 7, 2016
Tall Oak [Member]
ENLC [Member]
Business Acquisition [Line Items]
 
 
 
 
Limited Liability Company (LLC) Or Limited Partnership (LP) Members Or Limited Partners Ownership Interest, Shares
 
88,528,451 
 
 
Partnership name
EnLink Midstream Partners GP, LLC 
 
 
 
Managing Member Or General Partner Ownership Interest In The Limited Partnership
0.40% 
 
 
 
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest
100.00% 
23.00% 
 
 
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest
100.00% 
 
 
 
Business Acquisition, Percentage of Voting Interests Acquired
 
 
16.00% 
16.00% 
Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Accounting Policies [Abstract]
 
 
Deferred Finance Costs, Noncurrent, Net
$ 23.1 
$ 23.8 
Acquisition (Details Textuals) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 0 Months Ended
Mar. 31, 2016
Oct. 1, 2015
Matador [Member]
Oct. 1, 2015
Matador [Member]
Nov. 16, 2015
Deadwood Acquisition [Member]
Nov. 16, 2015
Deadwood Acquisition [Member]
Jan. 7, 2016
Tall Oak [Member]
Mar. 31, 2016
Tall Oak [Member]
Mar. 31, 2016
Tall Oak [Member]
Jan. 7, 2016
Common Unit
Tall Oak [Member]
Jan. 7, 2016
EnLink Midstream LP [Member]
Tall Oak [Member]
Jan. 7, 2016
ENLC [Member]
Tall Oak [Member]
Mar. 31, 2016
ENLC [Member]
Tall Oak [Member]
Jan. 7, 2016
ENLC [Member]
Tall Oak [Member]
Jan. 7, 2016
EnLink Midstream Partners, LP
Tall Oak [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Transaction Costs
 
 
 
 
 
 
$ 4.3 
$ 4.3 
 
 
 
 
 
 
Consideration Transferred
 
141.3 
 
40.1 
 
1,441.9 
 
 
 
 
 
 
 
 
BusinessCombinationFirstInstallment
 
 
 
 
 
1,020.0 
 
 
 
 
 
 
 
 
Business Combination Total Installment Payable
 
 
 
 
 
500.0 
 
 
 
 
 
 
 
 
Business Combination, Installment, Long-term Payable
 
 
 
 
 
250.0 
 
250.0 
 
 
 
 
 
 
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual
 
 
 
 
 
 
27.3 
 
 
 
 
 
 
 
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual
 
 
 
 
 
 
14.2 
 
 
 
 
 
 
 
Business Acquisition, Percentage of Voting Interests Acquired
 
 
100.00% 
 
50.00% 
 
 
 
 
84.00% 
 
16.00% 
16.00% 
 
Finite-Lived Intangible Asset, Useful Life
14 years 
15 years 
 
 
 
15 years 
 
 
 
 
 
 
 
 
Business Combination, Consideration Transferred, Other
 
 
 
1.5 
 
 
 
 
 
 
 
 
 
 
Business Combination Cash Consideration Transferred
 
 
 
 
 
$ 805.9 
 
 
 
 
$ 22.0 
 
 
$ 783.9 
Common Unit, Issued
 
 
 
 
 
 
 
 
15,564,009 
 
 
 
 
 
Acquisition (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Jan. 7, 2016
Tall Oak [Member]
Mar. 31, 2016
Tall Oak [Member]
Jan. 7, 2016
Tall Oak [Member]
Oct. 1, 2015
Matador [Member]
Oct. 1, 2015
Matador [Member]
Mar. 31, 2016
Common Stock [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
Issuance of common units
$ 215.1 
 
 
$ 215.1 
 
 
 
 
$ 215.1 
Business Combination Cash Consideration Transferred
 
 
 
805.9 
 
 
 
 
 
Business Combination, Consideration Transferred, Liabilities Incurred
 
 
 
420.9 
420.9 
 
 
 
 
Consideration Transferred
 
 
 
1,441.9 
 
 
141.3 
 
 
Assets acquired [Abstract]
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
20.2 
 
1.1 
 
Property, plant and equipment
 
 
 
 
 
423.2 
 
36.2 
 
Intangibles
 
 
 
 
 
1,034.3 
 
98.8 
 
Goodwill
1,540.6 
2,413.9 
3,710.0 
 
 
 
 
9.1 
 
Liabilities assumed:
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
(35.8)
 
(3.9)
 
Net assets acquired
 
 
 
 
 
$ 1,441.9 
 
$ 141.3 
 
Acquisition (Proforma) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Business Acquisition [Line Items]
 
Pro forma total revenues
$ 1,067.6 
Pro forma net income
3.8 
Pro forma net income attributable to EnLink Midstream, LLC
$ 10.6 
Basic
$ 0.06 
Diluted
$ 0.06 
Acquisition (Phantom) (Details) (Tall Oak [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended
Jan. 7, 2016
Mar. 31, 2016
Jan. 7, 2016
Tall Oak [Member]
 
 
 
Business Acquisition [Line Items]
 
 
 
Cash Acquired from Acquisition
$ 6.8 
 
 
Debt Instrument, Unamortized Discount (Premium), Net
 
$ 79.1 
$ 79.1 
Goodwill and Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Goodwill [Line Items]
 
 
 
Goodwill
$ 1,540.6 
$ 2,413.9 
$ 3,710.0 
Goodwill, Impairment Loss
(873.3)
 
 
Finite-Lived Intangible Asset, Useful Life
14 years 
 
 
Texas Operating Segment
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
230.4 
703.5 
1,168.2 
Goodwill, Impairment Loss
(473.1)
 
 
Louisiana Operating Segment
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
786.8 
Goodwill, Impairment Loss
 
 
Oklahoma Operating Segment
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
190.3 
190.3 
190.3 
Goodwill, Impairment Loss
 
 
Crude And Condensate Segment
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
93.2 
137.8 
Goodwill, Impairment Loss
(93.2)
 
 
Corporate Segment
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
1,119.9 
1,426.9 
1,426.9 
Goodwill, Impairment Loss
$ (307.0)
 
 
Minimum [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Finite-Lived Intangible Asset, Useful Life
10 years 
 
 
Maximum [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Finite-Lived Intangible Asset, Useful Life
20 years 
 
 
Goodwill and Intangible Assets (Intangible Asset by Major Class) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Finite-Lived Intangible Assets, Gross
$ 1,778.8 
 
$ 744.5 
Finite-Lived Intangible Assets, Accumulated Amortization
(82.1)
 
(54.6)
Finite-Lived Intangible Assets, Net
1,696.7 
 
689.9 
Finite-lived Intangible Assets Acquired
1,034.3 
 
 
Amortization of Intangible Assets
$ (27.5)
$ (11.5)
 
Goodwill and Intangible Assets (Amortization Expense Table) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Finite-Lived Intangibles Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
2016 (remaining)
$ 86.3 
 
2017
115.1 
 
2018
115.1 
 
2019
115.1 
 
2020
115.1 
 
Thereafter
1,150.0 
 
Total
$ 1,696.7 
$ 689.9 
Affiliate Transactions (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2016
Devon Energy Corporation
Mar. 31, 2015
Devon Energy Corporation
Dec. 31, 2015
Devon Energy Corporation
Mar. 31, 2016
Devon Energy Production Company [Member]
Related Party Transaction [Line Items]
 
 
 
 
 
 
Concentration Risk, Percentage
 
 
21.00% 
17.80% 
 
 
Due from Affiliate, Current
 
 
$ 88.3 
 
$ 110.8 
 
Due to Related Parties, Current
$ 22.8 
$ 14.8 
$ 22.8 
 
$ 14.8 
 
Minimum Volume Commitment
 
 
 
 
 
5 years 
Term Of Contract
 
 
 
 
 
13 years 
Long-Term Debt (Indebtedness Table) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Deferred Finance Costs, Noncurrent, Net
$ (23.1)
$ (23.8)
Other Long-term Debt
0.2 
0.2 
Partnership [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Amount Outstanding
543.0 
414.0 
ENLC Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Amount Outstanding
9.3 
2.7% Senior Notes due 2019
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
399.6 
399.6 
7.125% Senior Notes due 2022
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
180.7 
181.4 
4.4% Senior Notes due 2024
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
552.8 
552.9 
4.15% Senior Notes due 2025 [Member] [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
748.8 
748.8 
5.6% Senior Notes due 2044
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
349.7 
349.8 
5.05% Senior Notes due 2045
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
$ 443.2 
$ 443.1 
Long-Term Debt (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest
100.00% 
 
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest
100.00% 
 
Line of Credit Facility, Interest Rate During Period
0.50% 
 
Percentage Rate
1.00% 
 
ENLC [Member]
 
 
Debt Instrument [Line Items]
 
 
Limited Liability Company (LLC) Or Limited Partnership (LP) Members Or Limited Partners Ownership Interest, Shares
88,528,451 
 
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest
23.00% 
 
Minimum [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Coverge Ratio
2.50 
 
ENLC Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Maximum Borrowing Capacity
$ 250.0 
 
Line of Credit Facility, Interest Rate During Period
4.25% 
 
Line of Credit Facility, Amount Outstanding
9.3 
Line of Credit Facility, Remaining Borrowing Capacity
240.7 
 
ENLC Credit Facility [Member] |
Maximum [Member]
 
 
Debt Instrument [Line Items]
 
 
Leverage ratios
4.00 
 
ENLC Credit Facility [Member] |
AcquisitionPeriod [Member] |
Maximum [Member]
 
 
Debt Instrument [Line Items]
 
 
Leverage ratios
4.50 
 
Partnership [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Maximum Borrowing Capacity
1,500.0 
 
Line Of Credit Facility, Additional Borrowing Limit
500.0 
 
Letters of Credit Outstanding, Amount
10.8 
 
Line of Credit Facility, Amount Outstanding
543.0 
414.0 
Line of Credit Facility, Remaining Borrowing Capacity
946.2 
 
Partnership [Member] |
Maximum [Member]
 
 
Debt Instrument [Line Items]
 
 
Leverage ratios
5.0 
 
Conditional acquisition purchase price
50.0 
 
Partnership [Member] |
Revolving Credit Facility [Member] |
Maximum [Member]
 
 
Debt Instrument [Line Items]
 
 
Leverage ratios
5.5 
 
Partnership [Member] |
Base Rate [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Interest Rate During Period
0.50% 
 
Partnership [Member] |
Eurodollar [Member] |
Revolving Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Interest Rate During Period
1.00% 
 
Letter of Credit [Member] |
ENLC [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Maximum Borrowing Capacity
125.0 
 
Letter of Credit [Member] |
EnLink Midstream Partners, LP
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Maximum Borrowing Capacity
$ 500.0 
 
Line of Credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Interest Rate During Period
2.20% 
1.80% 
Long-term Debt (Phantom) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Interest Rate During Period
0.50% 
 
Accumulated Amortization, Deferred Finance Costs
$ 6.0 
$ 5.1 
Line of Credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Interest Rate During Period
2.20% 
1.80% 
2.7% Senior Notes due 2019
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.70% 
2.70% 
Debt Instrument, Unamortized Discount (Premium), Net
0.4 
0.4 
7.125% Senior Notes due 2022
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
7.125% 
7.125% 
Debt Instrument, Unamortized Discount (Premium), Net
(18.2)
(18.9)
4.4% Senior Notes due 2024
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
4.40% 
4.40% 
Debt Instrument, Unamortized Discount (Premium), Net
(2.8)
(2.9)
5.6% Senior Notes due 2044
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
5.60% 
5.60% 
Debt Instrument, Unamortized Discount (Premium), Net
0.3 
0.2 
5.05% Senior Notes due 2045
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
5.05% 
5.05% 
Debt Instrument, Unamortized Discount (Premium), Net
6.8 
6.9 
4.15% Senior Notes due 2025 [Member] [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
4.15% 
4.15% 
Debt Instrument, Unamortized Discount (Premium), Net
$ 1.2 
$ 1.2 
Income Tax (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Operating Loss Carryforwards [Line Items]
 
 
Tax expense (benefit) at statutory federal rate (35%)
$ (160.5)
$ 9.0 
State income taxes expense (benefit), net of federal tax benefit
(14.9)
0.6 
Income taxes from partnership
1.0 
1.2 
Non-deductible expense related to asset impairment
173.9 
Other Tax Expense (Benefit)
0.7 
(0.2)
Income Tax Expense (Benefit)
0.2 
10.6 
Enlink midstream, LLC [Member]
 
 
Operating Loss Carryforwards [Line Items]
 
 
Income Tax Expense (Benefit)
$ 0.2 
$ 10.6 
Certain Provision of the Partnership Agreement (Textual) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended
Jan. 7, 2016
Mar. 31, 2016
Mar. 31, 2015
Jan. 7, 2016
Mar. 31, 2016
General Partner Interest
13% Distribution
Mar. 31, 2016
General Partner Interest
23% Distribution
Mar. 31, 2016
General Partner Interest
48% Distribution
Mar. 31, 2016
BMO Capital Markets Corp, Merrilly Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc, Jeffries LLC, Raymond James and Associates, Inc and RBC Capital Markets LLC
EDA [Member]
Nov. 30, 2014
BMO Capital Markets Corp, Merrilly Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc, Jeffries LLC, Raymond James and Associates, Inc and RBC Capital Markets LLC
EDA [Member]
Mar. 31, 2016
Common Units
Dec. 31, 2015
Common Units
Mar. 16, 2015
Common Class C [Member]
Mar. 31, 2016
Common Class C [Member]
Dec. 31, 2015
Common Class C [Member]
Mar. 31, 2016
Preferred Stock [Member]
Subsidiary Sale Of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Incentive Distribution Percentage Levels
 
 
 
 
13.00% 
23.00% 
48.00% 
 
 
 
 
 
 
 
 
Incentive Distribution, Distribution Per Unit
 
 
 
 
$ 0.25 
$ 0.3125 
$ 0.375 
 
 
 
 
 
 
 
 
Distributions Declared, Per Unit
 
 
 
 
 
 
 
 
 
$ 0.39 
$ 0.390 
 
$ 0.390 
 
 
Distribution Made to Limited Partner, Distribution Date
 
 
 
 
 
 
 
 
 
May 12, 2016 
Feb. 11, 2016 
 
 
 
 
Proceeds from Issuance of common units
 
$ 2.1 
$ 2.2 
 
 
 
 
$ 2.1 
 
 
 
 
 
 
 
Payments of Stock Issuance Costs
 
 
 
 
 
 
 
0.1 
 
 
 
 
 
 
 
Aggregate Amount Of Equity Securities Allowed Under Equity Distribution Agreement
 
 
 
 
 
 
 
 
350.0 
 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
 
 
 
 
200,000 
 
 
 
 
 
 
 
AggregateAmountOfEquitySecurityRemainingUnderEquityDistributionAgreement
 
 
 
 
 
 
 
314.8 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Acquisitions
 
 
 
 
 
 
 
 
 
 
 
6,704,285 
 
 
 
Preferred Units, Issued
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
Percentage Of Avaliable Cash to Distribute
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution Made to Limited Partner, Distribution Period
 
45 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares Issued, Price Per Share
 
 
 
$ 15.00 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from Issuance of Preferred Limited Partners Units
724.5 
724.5 
 
 
 
 
 
 
 
 
 
 
 
 
Conversion VWAP Percentage
 
150.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent Of Issue Price
 
140.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Rate On Issue Price Payable In-Kind
 
8.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Rate On Issue Price Payable In Cash
 
7.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Rate On Issue Price
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock Dividends, Shares
 
 
 
 
 
 
 
 
 
 
 
 
233,107 
209,044 
992,445 
Net Income (Loss) Allocated To Preferred
 
$ 11.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
Certain Provision of the Partnership Agreement (Allocated Net Income (loss) to the General Partner) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Incentive Distribution Made to Managing Member or General Partner [Line Items]
 
 
General Partner interest in net income
$ 7.4 
$ 26.5 
General Partner Interest
 
 
Incentive Distribution Made to Managing Member or General Partner [Line Items]
 
 
Income allocation for incentive distributions
13.8 
8.8 
Unit-based compensation attributable to ENLC’s restricted units
(4.0)
(7.0)
General Partner interest in net income (loss)
(2.4)
0.1 
General Partners interest in drop down transactions
$ 0 
$ 24.6 
Earnings per Unit and Dilution Computations (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Capital Unit [Line Items]
 
 
EnLink Midstream, LLC interest in net income (loss)
$ (457.6)
$ 16.3 
Total distributed earnings
46.1 
40.4 
Total undistributed loss
(503.7)
(24.1)
Basic common unit (usd per unit)
$ (2.56)
$ 0.1 
Diluted common unit (usd per unit)
$ (2.56)
$ 0.1 
Distribution paid (usd per unit)
$ 0.255 
$ 0.245 
Common Unit
 
 
Capital Unit [Line Items]
 
 
EnLink Midstream, LLC interest in net income (loss)
(452.9)
16.2 
Total distributed earnings
45.6 
40.2 
Total undistributed loss
(498.5)
(24.0)
Restricted Stock Units (RSUs)
 
 
Capital Unit [Line Items]
 
 
EnLink Midstream, LLC interest in net income (loss)
(4.7)
0.1 
Total distributed earnings
0.5 
0.2 
Total undistributed loss
$ (5.2)
$ (0.1)
Earnings per Unit and Dilution Computations (Unit Weighted Average Schedule) (Details)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Capital Unit [Line Items]
 
 
Weighted Average Number of Shares Outstanding, Basic
178.7 
164.2 
Weighted Average Number Diluted Shares Outstanding Adjustment
0.3 
Weighted average common shares outstanding: Basic (usd per share)
178.7 
164.5 
Common Unit
 
 
Capital Unit [Line Items]
 
 
Weighted Average Number of Shares Outstanding, Basic
178.7 
164.2 
Asset Retirement Obligation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Asset Retirement Obligation Disclosure [Abstract]
 
 
 
 
Asset Retirement Obligation, Current
$ 0 
$ 1.1 
 
 
Asset Retirement Obligation
13.1 
13.6 
14.0 
20.6 
Revisions to existing liabilities
(0.4)
(3.9)
 
 
Accretion
0.1 
0.1 
 
 
Liabilities settled
$ (0.6)
$ (3.2)
 
 
Investment in Unconsolidated Affiliate (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]
 
 
 
Contributions
$ 7.1 
 
 
Distributions
9.2 
6.8 
 
Equity in income of equity investments
(2.4)
3.7 
 
Investment in equity investment
269.8 
 
274.3 
Gulf Coast Fractionators [Member]
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
Contributions
 
 
Distributions
3.0 
2.7 
 
Equity in income of equity investments
(1.7)
3.3 
 
Investment in equity investment
47.9 
 
52.6 
Ownership Percentage
38.75% 
38.75% 
 
Howard Energy Partners [Member]
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
Contributions
7.1 
 
 
Distributions
6.2 
4.1 
 
Equity in income of equity investments
(0.7)
0.4 
 
Investment in equity investment
$ 221.9 
 
$ 221.7 
Ownership Percentage
30.60% 
30.60% 
 
Investment in Unconsolidated Affiliate (Phantom) (Details)
Mar. 31, 2016
Mar. 31, 2015
Gulf Coast Fractionators [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Ownership Percentage
38.75% 
38.75% 
Howard Energy Partners [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Ownership Percentage
30.60% 
30.60% 
Employee Incentive Plans (Textuals) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 0 Months Ended
Mar. 31, 2016
Restricted Stock Units (RSUs)
ENLC Restricted Units
Mar. 31, 2016
EnLink Midstream Partners, LP
Performance Based Restricted Unit [Member]
Mar. 31, 2016
EnLink Midstream Partners, LP
Performance Based Restricted Unit [Member]
Mar. 31, 2016
EnLink Midstream Partners, LP
Restricted Stock Units (RSUs)
Mar. 31, 2016
Enlink midstream, LLC [Member]
Performance Based Restricted Unit [Member]
Mar. 31, 2016
Minimum [Member]
EnLink Midstream Partners, LP
Performance Based Restricted Unit [Member]
Mar. 31, 2016
Minimum [Member]
Enlink midstream, LLC [Member]
Performance Based Restricted Unit [Member]
Mar. 31, 2016
Maximum [Member]
EnLink Midstream Partners, LP
Performance Based Restricted Unit [Member]
Mar. 31, 2016
Maximum [Member]
Enlink midstream, LLC [Member]
Performance Based Restricted Unit [Member]
Apr. 7, 2016
Subsequent Event [Member]
Apr. 7, 2016
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized
 
 
 
 
 
 
 
 
 
5,000,000 
 
Unrecognized compensation cost related to non-vested restricted incentive units
$ 21.9 
 
$ 4.9 
$ 22.4 
$ 4.7 
 
 
 
 
 
 
Vesting Period
 
3 years 
 
 
3 years 
 
 
 
 
 
 
Unrecognized compensation costs, weighted average period for recognition
1 year 11 months 
 
2 years 2 months 
1 year 11 months 
2 years 2 months 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage
 
 
 
 
 
0.00% 
0.00% 
200.00% 
200.00% 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized
 
 
 
 
 
 
 
 
 
 
14,070,000 
Employee Incentive Plans (Expense Schedule) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Allocated Share-based Compensation Expense
$ 8.0 
$ 13.9 
Amount of related income tax expense recognized in income
1.9 
3.2 
General and Administrative Expense
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Allocated Share-based Compensation Expense
6.3 
12.0 
Cost of unit-based compensation charged to operating expense
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Allocated Share-based Compensation Expense
1.7 
1.9 
Interest of non-controlling partners in unit-based compensation
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Allocated Share-based Compensation Expense
$ 2.9 
$ 5.4 
Employee Incentive Plans (Compensation Schedule) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
ENLK Restricted Units |
Restricted Stock Units (RSUs)
 
Number of Units
 
Non-vested, beginning of period (Units)
1,253,729 
Granted (Units)
1,041,022 
Vested (Units)
(294,460)
Forfeited (Units)
(27,797)
Non-vested, end of period (Units)
1,972,494 
Weighted Average Grant-Date Fair Value
 
Non-vested, beginning of period (usd per share)
$ 29.59 
Granted (usd per share)
$ 10.01 
Vested (usd per share)
$ 30.40 
Forfeited (usd per share)
$ 24.12 
Non-vested, end of period (usd per share)
$ 19.21 
Aggregate intrinsic value, end of period (in millions)
$ 23.8 
Units withheld for payroll taxes on behalf of employees
84,429 
ENLC Restricted Units |
Restricted Stock Units (RSUs)
 
Number of Units
 
Non-vested, beginning of period (Units)
1,148,893 
Granted (Units)
1,032,976 
Vested (Units)
(317,726)
Forfeited (Units)
(24,970)
Non-vested, end of period (Units)
1,839,173 
Weighted Average Grant-Date Fair Value
 
Non-vested, beginning of period (usd per share)
$ 34.78 
Granted (usd per share)
$ 9.42 
Vested (usd per share)
$ 37.03 
Forfeited (usd per share)
$ 26.85 
Non-vested, end of period (usd per share)
$ 20.26 
Aggregate intrinsic value, end of period (in millions)
20.7 
Units withheld for payroll taxes on behalf of employees
90,326 
Enlink midstream, LLC [Member] |
Performance Based Restricted Unit [Member]
 
Number of Units
 
Non-vested, beginning of period (Units)
105,080 
Granted (Units)
242,646 
Forfeited (Units)
(2,525)
Non-vested, end of period (Units)
345,201 
Weighted Average Grant-Date Fair Value
 
Non-vested, beginning of period (usd per share)
$ 40.50 
Granted (usd per share)
$ 9.59 
Forfeited (usd per share)
$ 41.31 
Non-vested, end of period (usd per share)
$ 18.76 
Aggregate intrinsic value, end of period (in millions)
3.9 
EnLink Midstream Partners, LP |
Performance Based Restricted Unit [Member]
 
Number of Units
 
Non-vested, beginning of period (Units)
118,126 
Granted (Units)
258,078 
Forfeited (Units)
(2,798)
Non-vested, end of period (Units)
373,406 
Weighted Average Grant-Date Fair Value
 
Non-vested, beginning of period (usd per share)
$ 35.41 
Granted (usd per share)
$ 9.81 
Forfeited (usd per share)
$ 36.18 
Non-vested, end of period (usd per share)
$ 17.71 
Aggregate intrinsic value, end of period (in millions)
$ 4.5 
Employee Incentive Plans (Intrinsic and Fair Value of Units Vested) (Details) (Restricted Stock Units (RSUs), USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
ENLK Restricted Units
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Aggregate intrinsic value of units vested
$ 3.7 
$ 6.8 
Fair value of units vested
9.0 
7.0 
ENLC Restricted Units
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Aggregate intrinsic value of units vested
3.8 
8.3 
Fair value of units vested
$ 11.8 
$ 8.6 
Employee Incentive Plans Total Shareholder Return Unit Summary (Details) (Performance Based Restricted Unit [Member], USD $)
0 Months Ended
Feb. 19, 2016
Jan. 22, 2016
Enlink midstream, LLC [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Beginning TSR Price
$ 15.38 
$ 15.38 
Risk-free interest rate
0.89% 
1.097% 
Volatility factor
52.05% 
46.02% 
Distribution yield
14.00% 
8.60% 
EnLink Midstream Partners, LP
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Beginning TSR Price
$ 14.82 
$ 14.82 
Risk-free interest rate
0.89% 
1.097% 
Volatility factor
42.33% 
39.71% 
Distribution yield
19.20% 
12.10% 
Derivatives (Summary of Derivative Income Expense) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain (loss) on derivative activity
$ (0.4)
$ 0.2 
Commodity Swap
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Change in fair value of derivatives
(6.0)
(3.7)
Realized gain on derivatives
$ 5.6 
$ 3.9 
Derivatives (Schedule of Derivative Assets Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets — current
$ 10.5 
$ 16.8 
Fair value of derivative liabilities — current
(3.2)
(2.9)
Fair value of derivative liabilities — long term
(0.1)
Net fair value of derivatives
7.3 
13.8 
Not Designated as Hedging Instrument
 
 
Derivatives, Fair Value [Line Items]
 
 
Net fair value of derivatives
$ 7.3 
 
Derivatives (Derivatives Outstanding) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Derivative [Line Items]
 
 
Net fair value of derivatives
$ 7.3 
$ 13.8 
Not Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Net fair value of derivatives
7.3 
 
Liquids |
Short Contracts
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
42,900,000 
 
Net fair value of derivatives
8.8 
 
Liquids |
Long Contracts
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
17,100,000 
 
Net fair value of derivatives
(1.8)
 
Gas |
Short Contracts
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
6,700,000 
 
Net fair value of derivatives
0.8 
 
Gas |
Long Contracts
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
2,200,000 
 
Net fair value of derivatives
(0.3)
 
Condensate [Member] |
Short Contracts
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
100,000 
 
Net fair value of derivatives
$ (0.2)
 
Derivatives (Details Textuals) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
$ 7.3 
Maximum counterparty loss
10.5 
Maximum counterparty loss with netting feature
$ 7.3 
Fair Value Measurement (Fair Measurement on a Recurring Nonrecurring Basis) (Details) (Fair Value, Inputs, Level 2, Commodity Swap, Fair Value, Measurements, Recurring, USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Fair Value, Inputs, Level 2 |
Commodity Swap |
Fair Value, Measurements, Recurring
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net Fair Value of Derivative
$ 7.3 
$ 13.8 
Fair Value Measurement (Fair Value of Financial Instrument) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Reported Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Long-term Debt
$ 3,204.2 
$ 3,066.0 
Obligations under capital lease
13.4 
16.7 
Estimate of Fair Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Long-term Debt, Fair Value
2,638.3 
2,585.5 
Obligations under capital lease
$ 12.7 
$ 15.6 
Fair Value Measurement (Details Textuals) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Unsecured Debt
$ 2,674.8 
$ 2,674.8 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
2.70% 
2.70% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
7.10% 
7.10% 
Partnership [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Amount Outstanding
543.0 
414.0 
ENLC Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Amount Outstanding
$ 9.3 
$ 0 
Fair Value Measurement (Phantom) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Unsecured Debt
$ 2,674.8 
$ 2,674.8 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
2.70% 
2.70% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
7.10% 
7.10% 
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended
Aug. 31, 2014
Gain Contingencies [Line Items]
 
Gain on Litigation Settlement
$ 6.1 
Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
Product sales
$ 588.5 
$ 670.7 
 
Product sales - affiliates
24.5 
16.2 
 
Midstream services
114.5 
102.4 
 
Midstream services - affiliates
162.6 
151.0 
 
Cost of sales
(586.2)
(657.4)
 
Operating expenses
(98.2)
(98.4)
 
Loss on derivative activity
(0.4)
0.2 
 
Segment profit
205.3 
184.7 
 
Depreciation and amortization
(121.9)
(91.3)
 
Impairments
(873.3)
 
Goodwill
1,540.6 
3,710.0 
2,413.9 
Capital expenditures
120.4 
175.7 
 
Segment identifiable assets
10,066.3 
 
9,541.3 
Texas Operating Segment
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Product sales
62.5 
49.8 
 
Product sales - affiliates
37.3 
25.9 
 
Midstream services
27.4 
19.6 
 
Midstream services - affiliates
110.3 
115.5 
 
Cost of sales
(91.3)
(67.2)
 
Operating expenses
(39.3)
(47.0)
 
Loss on derivative activity
 
Segment profit
106.9 
96.6 
 
Depreciation and amortization
(46.2)
(36.4)
 
Impairments
(473.1)
 
 
Goodwill
230.4 
1,168.2 
703.5 
Capital expenditures
23.3 
73.5 
 
Segment identifiable assets
3,175.4 
 
3,709.5 
Louisiana Operating Segment
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Product sales
287.7 
372.2 
 
Product sales - affiliates
7.4 
7.1 
 
Midstream services
55.2 
57.9 
 
Midstream services - affiliates
12.7 
0.1 
 
Cost of sales
(302.1)
(370.9)
 
Operating expenses
(23.3)
(24.3)
 
Loss on derivative activity
 
Segment profit
37.6 
42.1 
 
Depreciation and amortization
(29.3)
(27.5)
 
Impairments
 
 
Goodwill
786.8 
Capital expenditures
22.7 
15.2 
 
Segment identifiable assets
2,290.6 
 
2,309.3 
Oklahoma Operating Segment
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Product sales
7.8 
 
Product sales - affiliates
10.6 
3.7 
 
Midstream services
15.1 
10.7 
 
Midstream services - affiliates
45.0 
31.2 
 
Cost of sales
(19.3)
(5.1)
 
Operating expenses
(12.8)
(7.0)
 
Loss on derivative activity
 
Segment profit
46.4 
33.5 
 
Depreciation and amortization
(33.8)
(13.5)
 
Impairments
 
 
Goodwill
190.3 
190.3 
190.3 
Capital expenditures
69.2 
5.2 
 
Segment identifiable assets
2,380.7 
 
873.4 
Crude And Condensate Segment
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Product sales
230.5 
248.7 
 
Product sales - affiliates
0.2 
 
Midstream services
16.8 
14.2 
 
Midstream services - affiliates
5.2 
4.2 
 
Cost of sales
(215.1)
(234.7)
 
Operating expenses
(22.8)
(20.1)
 
Loss on derivative activity
 
Segment profit
14.8 
12.3 
 
Depreciation and amortization
(10.4)
(12.4)
 
Impairments
(93.2)
 
 
Goodwill
137.8 
93.2 
Capital expenditures
3.3 
77.6 
 
Segment identifiable assets
798.1 
 
898.0 
Corporate Segment
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Product sales
 
Product sales - affiliates
(31.0)
(20.5)
 
Midstream services
 
Midstream services - affiliates
(10.6)
 
Cost of sales
41.6 
20.5 
 
Operating expenses
 
Loss on derivative activity
(0.4)
0.2 
 
Segment profit
(0.4)
0.2 
 
Depreciation and amortization
(2.2)
(1.5)
 
Impairments
(307.0)
 
 
Goodwill
1,119.9 
1,426.9 
1,426.9 
Capital expenditures
1.9 
4.2 
 
Segment identifiable assets
$ 1,421.5 
 
$ 1,751.1 
Segment Information (Reconciliation of Segment Profit to Operating Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Segment Reporting [Abstract]
 
 
Segment profits
$ 205.3 
$ 184.7 
General and administrative expenses
(35.1)
(42.9)
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property
0.2 
Depreciation and amortization
(121.9)
(91.3)
Impairments
(873.3)
Operating income (loss)
$ (824.8)
$ 50.5 
Supplemental Cash Flow Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 0 Months Ended 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Common Class C [Member]
Mar. 31, 2015
Common Class C [Member]
Jan. 7, 2016
Tall Oak [Member]
Mar. 31, 2016
Tall Oak [Member]
Other Significant Noncash Transactions [Line Items]
 
 
 
 
 
 
Business Combination, Installment, Current
$ 250.0 
 
 
 
 
 
Other Significant Noncash Transaction, Value of Consideration Given
215.1 
180.0 
180.0 
 
 
Business Combination, Consideration Transferred, Liabilities Incurred
 
 
 
 
$ 420.9 
$ 420.9 
Supplemental Cash Flow Information (Phantom) (Details) (Tall Oak [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended
Jan. 7, 2016
Mar. 31, 2016
Jan. 7, 2016
Tall Oak [Member]
 
 
 
Other Significant Noncash Transactions [Line Items]
 
 
 
Debt Instrument, Unamortized Discount (Premium), Net
 
$ 79.1 
$ 79.1 
Business Combination, Installment, Long-term Payable
$ 250.0 
$ 250.0 
 
Other Information (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
 
 
Accrued interest
$ 53.3 
$ 23.2 
Accrued wages and benefits, including taxes
7.5 
27.7 
Accrued ad valorem taxes
12.5 
27.0 
Capital expenditure accruals
32.0 
22.3 
Onerous performance obligation
16.6 
17.0 
Current Other Liabilities
65.3 
57.6 
Other current liabilities
$ 187.2 
$ 174.8