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• | 88,528,451 common units representing an aggregate 23.0% limited partner interest in the Partnership; |
• | 100.0% ownership interest in EnLink Midstream Partners GP, LLC, the general partner of the Partnership (the “General Partner”), which owns a 0.4% general partner interest and all of the incentive distribution rights in the Partnership; and |
• | 16% limited partner interest in TOM. |
|
|
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 |
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 |
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 |
|
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 |
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 |
2016 (remaining) | $ | 86.3 | |
2017 | 115.1 | ||
2018 | 115.1 | ||
2019 | 115.1 | ||
2020 | 115.1 | ||
Thereafter | 1,150.0 | ||
Total | $ | 1,696.7 |
|
|
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 |
|
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 |
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 |
|
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 |
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 |
|
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. |
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 |
|
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 |
|
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 |
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 |
|
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 |
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 |
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 |
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 | % |
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 |
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 |
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 |
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 | % |
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 |
|
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 |
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 |
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 |
|
March 31, 2016 Level 2 | December 31, 2015 Level 2 | ||||||
Commodity Swaps* | $ | 7.3 | $ | 13.8 | |||
Total | $ | 7.3 | $ | 13.8 |
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 |
|
|
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 |
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 |
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 |
|
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 | — |
|
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 |
|
|
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 |
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 |
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 |
|
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 |
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 |
2016 (remaining) | $ | 86.3 | |
2017 | 115.1 | ||
2018 | 115.1 | ||
2019 | 115.1 | ||
2020 | 115.1 | ||
Thereafter | 1,150.0 | ||
Total | $ | 1,696.7 |
|
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 |
|
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 |
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 |
|
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 |
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 |
|
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. |
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 |
|
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 |
|
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 |
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 |
|
EnLink Midstream, LLC Performance Units: | January 2016 | February 2016 | ||||||
Beginning TSR Price | $ | 15.38 | $ | 15.38 | ||||
Risk-free interest rate | 1.10 | % | 0.89 | % | ||||
Volatility factor | 46.02 | % | 52.05 | % | ||||
Distribution yield | 8.60 | % | 14.00 | % |
EnLink Midstream Partners, LP Performance Units: | January 2016 | February 2016 | ||||||
Beginning TSR Price | $ | 14.82 | $ | 14.82 | ||||
Risk-free interest rate | 1.10 | % | 0.89 | % | ||||
Volatility factor | 39.71 | % | 42.33 | % | ||||
Distribution yield | 12.10 | % | 19.20 | % |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
|
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 |
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 |
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 |
|
March 31, 2016 Level 2 | December 31, 2015 Level 2 | ||||||
Commodity Swaps* | $ | 7.3 | $ | 13.8 | |||
Total | $ | 7.3 | $ | 13.8 |
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 |
|
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 |
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 |
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 |
|
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 | — |
|
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 |
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