DALLAS, May 3, 2016 /PRNewswire/ -- The EnLink Midstream
companies, EnLink Midstream Partners, LP (NYSE: ENLK) (the
Partnership) and EnLink Midstream, LLC (NYSE: ENLC) (the
General Partner), today reported results for the first quarter of
2016.
First-Quarter 2016 — EnLink Midstream Partners, LP Financial
Results
The Partnership realized adjusted EBITDA of $195.0 million and distributable cash flow of
$155.4 million in the first quarter
of 2016, compared with adjusted EBITDA of $129.9 million and distributable cash flow
of $98.7 million in the first
quarter of 2015.
The Partnership's net loss was $562.9
million and net cash provided by operating activities was
$189.1 million in the first quarter
of 2016, compared with net income of $35.7
million and net cash provided by operating activities of
$171.7 million in the first quarter
of 2015. The Partnership's operating loss was $515.9 million in the first quarter of 2016
compared with operating income of $51.5
million in the first quarter of 2015. The net loss in
the first quarter of 2016 was primarily due to a non-cash expense
of $566.3 million related to goodwill
impairments.
The Partnership's gross operating margin was $303.5 million in the first quarter of 2016
compared with gross operating margin of $283.1 million in the first quarter of 2015.
Adjusted EBITDA, distributable cash flow and gross operating margin
are explained in greater detail under "Non-GAAP Financial
Information," and reconciliations of these measures to their most
directly comparable GAAP measures are included in the tables at the
end of this news release.
"EnLink delivered strong results during the first quarter. Our
financial discipline and execution of our strategy enabled us to
grow cash flows through fee-based contracts with minimal direct
commodity exposure," said Barry E.
Davis, EnLink President and Chief Executive Officer. "We are
one of the best positioned midstream companies. Our strong platform
allows us to execute on opportunities in the 'first mile' of supply
in high-return basins like the STACK, SCOOP, and Permian, while our
premier natural gas and NGL footprint in Louisiana provides us the 'last mile' in a
high-demand growth market."
The Partnership's operating and reporting segments are based
principally upon geographic regions served and consist of the
following: the Texas segment,
which includes natural gas gathering, processing, transmission and
fractionation operations located in north Texas and west Texas; the Louisiana segment, which includes pipelines,
processing plants and NGL assets located in Louisiana; the Oklahoma segment, which includes natural gas
gathering and processing operations located in Oklahoma; the Crude and Condensate segment,
which includes rail, truck, pipeline and barge facilities to
deliver crude and condensate in Texas, Louisiana and the Ohio River Valley and brine
disposal wells in the Ohio River Valley; and the corporate segment,
which includes operating activity for intersegment eliminations and
gains or losses from derivative activities.
Each business segment's contribution to the first quarter 2016
gross operating margin compared with first quarter 2015, and the
factors affecting those contributions, is described below:
- Texas Segment. The Texas segment had an increase in gross
operating margin of $2.6 million for
the three months ended March 31, 2016
compared to the three months ended March 31,
2015. The Texas segment
increase was primarily attributable to an increase of $11.8 million in gross operating margin due to
the Coronado acquisition in March
2015, the Matador acquisition in October 2015 and the Deadwood acquisition in
November 2015. The increase
attributable to acquisitions was partially offset by a decrease of
$9.2 million in gross operating
margin from our other assets primarily due to volume declines on
our north Texas processing,
gathering and transmission assets.
- Louisiana Segment. The Louisiana segment had a decrease in gross
operating margin of $5.5 million for
the three months ended March 31, 2016
as compared to the three months ended March
31, 2015. This decrease was primarily attributable to a
decrease of $4.8 million from our NGL
business, which was driven by declines in fractionation volumes
between periods due to a decline in NGL prices coupled with a
decline in volumes due to scheduled maintenance on our
fractionators during the first quarter of 2016.
- Oklahoma Segment. The Oklahoma segment had an increase in gross
operating margin of $18.7 million for
the three months ended March 31, 2016
compared to the three months ended March 31,
2015. This increase was primarily driven by an increase of
$12.8 million in gross operating
margin due to the Tall Oak Midstream acquisition in January 2016. In addition, our gross operating
margin from our Cana gathering and processing assets increased by
$5.2 million between periods due to
increased volumes combined with the expansions of our compression
facilities, which were completed in October
2015.
- Crude & Condensate Segment. The Crude and Condensate
segment had an increase in gross operating margin of $5.2 million for the three months ended
March 31, 2016 as compared to the
three months ended March 31, 2015.
This increase was attributable to the LPC acquisition in
January 2015, which contributed an
increase in gross operating margin of $5.5
million between periods. In addition, gross operating margin
from our compression and condensate stabilization facilities
located in the ORV increased by $1.9
million between periods primarily due to the construction of
new facilities, which commenced operation at various times in 2015.
These increases were partially offset by a $2.5 million decrease from other crude operations
related to the termination of a customer contract in June 2015.
The Partnership's first quarter 2016 operating expenses were
$98.2 million, a decrease of
$0.2 million from the first quarter
of 2015. General and administrative expenses for the first quarter
of 2016 decreased by $8.7 million
from the first quarter of 2015. Depreciation and amortization
expense for the first quarter of 2016 increased by $30.6 million from the first quarter of 2015.
This increase was primarily due to the Tall Oak acquisition in
January 2016, the Coronado
acquisition in March 2015, the LPC
acquisition in January 2015, the
Matador acquisition in October 2015
and the decommissioning of certain pipeline assets in Louisiana. Net interest expense for the first
quarter of 2016 increased by $24.8
million from the first quarter of 2015 primarily due to an
increase in senior notes outstanding and amortization of
installment note discount.
Net loss per limited partner common unit for the first quarter
of 2016 was $1.74 per common unit
compared with net income of $0.03 per
common unit for the first quarter of 2015.
First-Quarter 2016 — EnLink Midstream, LLC Financial
Results
The General Partner reported a net loss of $871.3 million for the first quarter of 2016
compared with net income of $25.0
million in the first quarter of 2015. The net loss in the
first quarter of 2016 was primarily due to a non-cash expense of
$873.3 million related to goodwill
impairment. The General Partner's cash available for distribution
was $48.4 million in the first
quarter of 2016 compared with cash available for distribution of
$52.1 million in the first quarter of
2015, and much of that year-over-year decline was due to the EnLink
Midstream Holdings drop down transactions that were completed in
2015. The resulting distribution coverage ratio for the first
quarter of 2016 was approximately 1.04x on the declared
distribution of $0.255 per General
Partner unit. Cash available for distribution is explained in
greater detail under "Non-GAAP Financial Information," and a
reconciliation of this measure to its most directly comparable GAAP
measure is included in the tables at the end of this news
release.
EnLink Midstream to Hold Earnings Conference Call on
May 4, 2016
The General Partner and the Partnership will hold a conference
call to discuss first quarter financial results on Wednesday,
May 4, 2016, at 9:00 a.m. Central time (10:00 a.m.
Eastern time). The dial-in number for the call is 1-855-656-0924.
Callers outside the United States
should dial 1-412-542-4172. Participants can also preregister for
the conference call by navigating to http://dpregister.com/10083079
where they will receive their dial-in information upon completion
of their preregistration.
Interested parties can access an archived replay of the call on
the Investors page of EnLink Midstream's website at
www.enlink.com.
About the EnLink Midstream Companies
EnLink Midstream is a leading, integrated midstream company with
a diverse geographic footprint and a strong financial foundation,
delivering tailored customer solutions for sustainable growth.
EnLink Midstream is publicly traded through two entities: EnLink
Midstream, LLC (NYSE: ENLC), the publicly traded general partner
entity, and EnLink Midstream Partners, LP (NYSE: ENLK), the master
limited partnership.
EnLink Midstream's assets are located in many of North America's premier oil and gas regions,
including the Barnett Shale, Permian Basin, Cana-Woodford Shale, Arkoma-Woodford Shale,
Eagle Ford Shale, Haynesville Shale, Gulf Coast region, Utica Shale
and Marcellus Shale. Based in
Dallas, Texas, EnLink Midstream's
assets include approximately 9,900 miles of gathering and
transportation pipelines, 19 processing plants with approximately
3.9 billion cubic feet per day of processing capacity, seven
fractionators with approximately 284,000 barrels per day of
fractionation capacity, as well as barge and rail terminals,
product storage facilities, purchase and marketing capabilities,
brine disposal wells, an extensive crude oil trucking fleet and
equity investments in certain private midstream companies.
References in this press release 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, EnLink Midstream Holdings, LP ("Midstream
Holdings") and EnLink TOM Holdings, LP and its consolidated
subsidiaries (collectively, "TOM Entities"). TOM is sometimes used
to refer to EnLink TOM Holdings, LP itself or EnLink TOM Holdings,
LP together with its consolidated subsidiaries.
Additional information about the EnLink companies can be found
at www.enlink.com.
Non-GAAP Financial Information
This press release contains non-generally accepted accounting
principle financial measures that we refer to as adjusted EBITDA,
distributable cash flow, gross operating margin, maintenance
capital expenditures and the General Partner's cash available for
distribution. We define adjusted EBITDA as net income (loss) plus
interest expense, provision for income taxes, depreciation and
amortization expense, impairment expense, unit-based compensation,
(gain) loss on noncash derivatives, gain on disposition of assets,
transaction costs, accretion expense associated with asset
retirement obligations, reimbursed employee costs, non-cash rent
and distributions from unconsolidated affiliate investments less
payments under onerous performance obligation, non-controlling
interest and (income) loss from unconsolidated affiliate
investments. We define distributable cash flow as net cash
provided by operating activities plus adjusted EBITDA, net to
EnLink Midstream Partners, LP, less interest expense (excluding
amortization of the TOM Entities' installment note discount),
adjustments for the mandatorily redeemable non-controlling
interest, cash taxes and other, and maintenance capital
expenditures. Gross operating margin is defined as revenue minus
the cost of sales. Cash available for distribution is defined as
distributions due to the General Partner from the Partnership and
the General Partner's interest in the TOM Entities' adjusted EBITDA
(as defined herein), and the General Partner's interest in the
adjusted EBITDA of Midstream Holdings (as defined herein), less
maintenance capital, the General Partner's specific general and
administrative costs as a separate public reporting entity, the
interest costs associated with the General Partner's debt and
current taxes attributable to the General Partner's earnings, plus
ENLC standalone impairment.
The amounts included in the calculation of these measures are
computed in accordance with generally accepted accounting
principles (GAAP) with the exception of maintenance capital
expenditures, the TOM Entities' adjusted EBITDA and the adjusted
EBITDA of Midstream Holdings. Maintenance capital
expenditures are capital expenditures made to replace partially or
fully depreciated assets in order to maintain the existing
operating capacity of the assets and to extend their useful lives.
Adjusted EBITDA of Midstream Holdings is defined as Midstream
Holdings' earnings plus depreciation, provisions for income taxes
and distribution of equity investment less income on equity
investment. The TOM Entities' adjusted EBITDA means earnings
before depreciation and amortization.
The Partnership and General Partner believe these measures are
useful to investors because they may provide users of this
financial information with meaningful comparisons between current
results and prior-reported results and a meaningful measure of the
Partnership's and the General Partner's cash flow after it has
satisfied the capital and related requirements of its
operations.
Gross operating margin, adjusted EBITDA, distributable cash
flow, maintenance capital expenditures and cash available for
distribution, as defined above, are not measures of financial
performance or liquidity under GAAP. They should not be considered
in isolation or as an indicator of the Partnership's and the
General Partner's performance. Furthermore, they should not be seen
as a substitute for metrics prepared in accordance with GAAP.
Reconciliations of these measures to their most directly comparable
GAAP measures are included in the following tables.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Although these
statements reflect the current views, assumptions and expectations
of our management, the matters addressed herein involve certain
assumptions, risks and uncertainties that could cause actual
activities, performance, outcomes and results to differ materially
from those indicated. Such forward-looking statements include, but
are not limited to, statements about future financial and operating
results, guidance, projected or forecasted financial results,
objectives, project timing, expectations and intentions and other
statements that are not historical facts. Factors that could result
in such differences or otherwise materially affect our financial
condition, results of operations and cash flows include, without
limitation,(a) the dependence on Devon for a substantial portion of
the natural gas that we gather, process and transport, (b)
developments that materially and adversely affect Devon or our
other customers, (c) adverse developments in the midstream business
may reduce our ability to make distributions, (d) our vulnerability
to having a significant portion of our operations concentrated in
the Barnett Shale, (e) the amount of hydrocarbons transported in
our gathering and transmission lines and the level of our
processing and fractionation operations, (f) impairments to
goodwill, long-lived assets and equity method investments, (g) our
ability to balance our purchases and sales, (h) fluctuations in
oil, natural gas and NGL prices, (i) construction risks in our
major development projects, (j) reductions in our credit ratings,
(k) our debt levels and restrictions contained in our debt
documents, (l) our ability to consummate future acquisitions,
successfully integrate any acquired businesses, realize any cost
savings and other synergies from any acquisition, (m) changes in
the availability and cost of capital, (n) competitive conditions in
our industry and their impact on our ability to connect hydrocarbon
supplies to our assets, (o) operating hazards, natural disasters,
weather-related delays, casualty losses and other matters beyond
our control, (p) a failure in our computing systems or a
cyber-attack on our systems, and (q) the effects of existing and
future laws and governmental regulations, including environmental
and climate change requirements and other uncertainties. These and
other applicable uncertainties, factors and risks are described
more fully in EnLink Midstream Partners, LP's and EnLink Midstream,
LLC's filings with the Securities and Exchange Commission,
including EnLink Midstream Partners, LP's and EnLink Midstream,
LLC's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K. Neither EnLink Midstream Partners,
LP nor EnLink Midstream, LLC assumes any obligation to update any
forward-looking statements.
|
Contact:
|
Jill McMillan,
Vice President of Communications and Investor
Relations
|
|
Phone: (214)
721-9271
|
|
Jill.McMillan@enlink.com
|
(Tables follow)
|
EnLink Midstream
Partners, LP
|
|
Selected Financial
Data
|
|
(All amounts in
millions except per unit amounts)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
(Unaudited)
(In millions, except per unit
amounts)
|
|
Total
revenues
|
$
|
889.7
|
|
|
$
|
940.5
|
|
|
Cost of sales
(1)
|
586.2
|
|
|
657.4
|
|
|
Gross operating
margin
|
303.5
|
|
|
283.1
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Operating expenses
(2)
|
98.2
|
|
|
98.4
|
|
|
General and
administrative
|
33.2
|
|
|
41.9
|
|
|
Gain on disposition
of assets
|
(0.2)
|
|
|
—
|
|
|
Depreciation and
amortization
|
121.9
|
|
|
91.3
|
|
|
Impairments
|
566.3
|
|
|
—
|
|
|
Total operating costs
and expenses
|
819.4
|
|
|
231.6
|
|
|
Operating income
(loss)
|
(515.9)
|
|
|
51.5
|
|
|
Other income
(expense):
|
|
|
|
|
Interest expense, net
of interest income
|
(43.7)
|
|
|
(18.9)
|
|
|
Income (loss) from
unconsolidated affiliates
|
(2.4)
|
|
|
3.7
|
|
|
Other
income
|
0.1
|
|
|
0.6
|
|
|
Total other
expense
|
(46.0)
|
|
|
(14.6)
|
|
|
Income (loss) before
non-controlling interest and income taxes
|
(561.9)
|
|
|
36.9
|
|
|
Income tax
provision
|
(1.0)
|
|
|
(1.2)
|
|
|
Net income
(loss)
|
(562.9)
|
|
|
35.7
|
|
|
Net income (loss)
attributable to the non-controlling interest
|
(2.5)
|
|
|
0.1
|
|
|
Net income (loss)
attributable to EnLink Midstream Partners, LP
|
$
|
(560.4)
|
|
|
$
|
35.6
|
|
|
General partner
interest in net income
|
$
|
7.4
|
|
|
$
|
26.5
|
|
|
Limited partners'
interest in net income (loss) attributable to EnLink Midstream
Partners, LP
|
$
|
(567.2)
|
|
|
$
|
9.0
|
|
|
Class C partners'
interest in net income (loss) attributable to EnLink Midstream
Partners, LP
|
$
|
(12.4)
|
|
|
$
|
0.1
|
|
|
Preferred interest in
net income attributable to EnLink Midstream Partners, LP
|
$
|
11.8
|
|
|
$
|
—
|
|
|
Net income (loss)
attributable to EnLink Midstream Partners, LP per limited partners'
unit:
|
|
|
|
|
Basic common
unit
|
$
|
(1.74)
|
|
|
$
|
0.03
|
|
|
Diluted common
unit
|
$
|
(1.74)
|
|
|
$
|
0.03
|
|
|
|
|
(1)
|
Includes $42.6
million and $7.9 million for the three months ended March 31, 2016
and 2015, respectively, of affiliate purchased gas, NGLs,
condensate and crude oil.
|
|
(2)
|
Includes $0.1 million
for the three months ended March 31, 2016 of affiliate operating
expenses.
|
|
EnLink Midstream
Partners, LP
|
|
Reconciliation of
Net Income to Adjusted EBITDA and Distributable Cash
Flow
|
|
(All amounts in
millions except ratios and per unit amounts)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
Net income
(loss)
|
$
|
(562.9)
|
|
|
$
|
35.7
|
|
|
Interest
expense
|
43.7
|
|
|
18.9
|
|
|
Depreciation and
amortization
|
121.9
|
|
|
91.3
|
|
|
Impairments
|
566.3
|
|
|
—
|
|
|
(Income) loss from
unconsolidated affiliate investments
|
2.4
|
|
|
(3.7)
|
|
|
Distributions from
unconsolidated affiliate investments
|
9.2
|
|
|
6.8
|
|
|
Gain on disposition
of assets
|
(0.2)
|
|
|
—
|
|
|
Unit-based
compensation
|
7.9
|
|
|
13.8
|
|
|
Income
taxes
|
1.0
|
|
|
1.2
|
|
|
Payments under
onerous performance obligation offset to other current and
long-term liabilities
|
(4.4)
|
|
|
(4.5)
|
|
|
Other (1)
|
10.9
|
|
|
10.7
|
|
|
Adjusted EBITDA
before non-controlling interest
|
195.8
|
|
|
170.2
|
|
|
Non-controlling
interest share of adjusted EBITDA
|
(0.8)
|
|
|
(0.1)
|
|
|
Transferred interest
adjusted EBITDA (2)
|
—
|
|
|
(40.2)
|
|
|
Adjusted EBITDA, net
to EnLink Midstream Partners, LP
|
$
|
195.0
|
|
|
$
|
129.9
|
|
|
Interest
expense
|
(43.7)
|
|
|
(18.9)
|
|
|
Amortization of TOM
Entities' installment payable discount included in interest expense
(3)
|
12.4
|
|
|
—
|
|
|
Non-cash adjustment
for mandatorily redeemable non-controlling interest
|
0.2
|
|
|
(2.6)
|
|
|
Cash taxes and
other
|
(1.0)
|
|
|
(0.8)
|
|
|
Maintenance capital
expenditures
|
(7.5)
|
|
|
(8.9)
|
|
|
Distributable cash
flow
|
$
|
155.4
|
|
|
$
|
98.7
|
|
|
|
|
|
|
Actual declared
distribution (4)
|
$
|
142.2
|
|
|
$
|
111.7
|
|
|
Distribution
Coverage
|
1.09x
|
|
|
0.88x
|
|
|
Distributions
declared per limited partner unit
|
$
|
0.390
|
|
|
$
|
0.380
|
|
|
|
|
(1)
|
Includes financial
derivatives marked-to-market, accretion expense associated with
asset retirement obligations, reimbursed employee costs from Devon
and LPC, acquisition transaction costs and non-cash
rent.
|
|
(2)
|
Represents recast
adjusted EBITDA from assets acquired from ENLC and Devon in drop
down transactions during the first half of 2015 for the period
prior to the date of the drop down transactions.
|
|
(3)
|
Amortization of the
TOM Entities acquisition installment payable discount is considered
non-cash interest under ENLK's credit facility since the payment
under the installment payable is consideration for the acquisition
of the TOM Entities.
|
|
(4)
|
The actual declared
distribution does not assume full quarter distributions on the
Class D units in the first quarter of 2015.
|
|
EnLink Midstream
Partners, LP
|
|
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted
EBITDA
|
|
and Distributable
Cash Flow
|
|
(All amounts in
millions)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
Net cash provided by
operating activities
|
$
|
189.1
|
|
|
$
|
171.7
|
|
|
Interest expense, net
(1)
|
31.4
|
|
|
21.7
|
|
|
Current income
tax
|
1.0
|
|
|
1.2
|
|
|
Distributions from
unconsolidated affiliate investments in excess of
earnings
|
9.2
|
|
|
4.1
|
|
|
Other (2)
|
4.5
|
|
|
6.9
|
|
|
Changes in operating
assets and liabilities which provided cash:
|
|
|
|
|
Accounts
receivable, accrued revenues, inventories and other
|
(46.9)
|
|
|
(102.5)
|
|
|
Accounts
payable, accrued gas and crude oil purchases and other
(3)
|
7.5
|
|
|
67.1
|
|
|
Adjusted EBITDA
before non-controlling interest
|
195.8
|
|
|
170.2
|
|
|
Non-controlling
interest share of adjusted EBITDA
|
(0.8)
|
|
|
(0.1)
|
|
|
Transferred interest
adjusted EBITDA (4)
|
—
|
|
|
(40.2)
|
|
|
Adjusted EBITDA, net
to EnLink Midstream Partners, LP
|
$
|
195.0
|
|
|
$
|
129.9
|
|
|
Interest
expense
|
(43.7)
|
|
|
(18.9)
|
|
|
Amortization of TOM
Entities' installment payable discount included in interest expense
(5)
|
12.4
|
|
|
—
|
|
|
Non-cash adjustment
for mandatorily redeemable non-controlling interest
|
0.2
|
|
|
(2.6)
|
|
|
Cash taxes and
other
|
(1.0)
|
|
|
(0.8)
|
|
|
Maintenance capital
expenditures
|
(7.5)
|
|
|
(8.9)
|
|
|
Distributable cash
flow
|
$
|
155.4
|
|
|
$
|
98.7
|
|
|
|
|
(1)
|
Net of amortization
of debt issuance costs, discount and premium, and valuation
adjustment for mandatorily redeemable non-controlling interest
included in interest expense.
|
|
(2)
|
Includes acquisition
transaction costs and reimbursed employee costs from Devon and
LPC.
|
|
(3)
|
Net of payments under
onerous performance obligation offset to other current and
long-term liabilities.
|
|
(4)
|
Represents recast
adjusted EBITDA from assets acquired from ENLC and Devon in drop
down transactions during the first half of 2015 for the period
prior to the date of the drop down transactions.
|
|
(5)
|
Amortization of the
TOM Entities acquisition installment note discount is considered
non-cash interest under ENLK's credit facility since the payment
under the note is consideration for the acquisition of the TOM
Entities.
|
|
EnLink Midstream
Partners, LP
|
|
Operating
Data
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
Midstream
Volumes:
|
|
|
|
|
Texas
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,743,400
|
|
|
2,751,000
|
|
|
Processing
(MMBtu/d)
|
1,198,100
|
|
|
1,136,300
|
|
|
Louisiana
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,475,000
|
|
|
1,355,400
|
|
|
Processing
(MMBtu/d)
|
517,800
|
|
|
434,400
|
|
|
NGL Fractionation
(Gals/d)
|
5,020,200
|
|
|
5,632,000
|
|
|
Oklahoma
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
617,000
|
|
|
431,800
|
|
|
Processing
(MMBtu/d)
|
569,700
|
|
|
356,500
|
|
|
Crude and
Condensate
|
|
|
|
|
Crude Oil Handling
(Bbls/d)
|
124,700
|
|
|
89,900
|
|
|
Brine Disposal
(Bbls/d)
|
3,500
|
|
|
3,600
|
|
|
EnLink Midstream,
LLC
|
|
Selected Financial
Data
|
|
(All amounts in
millions except per unit amounts)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
(Unaudited)
(In millions, except per unit
amounts)
|
|
Total
revenues
|
$
|
889.7
|
|
|
$
|
940.5
|
|
|
Cost of sales
(1)
|
586.2
|
|
|
657.4
|
|
|
Gross operating
margin
|
303.5
|
|
|
283.1
|
|
|
Operating costs and
expenses:
|
|
|
|
|
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
|
1,128.3
|
|
|
232.6
|
|
|
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 (loss)
attributable to EnLink Midstream, LLC per unit:
|
|
|
|
|
Basic per
common unit
|
$
|
(2.56)
|
|
|
$
|
0.10
|
|
|
Diluted per
common unit
|
$
|
(2.56)
|
|
|
$
|
0.10
|
|
|
|
|
(1)
|
Includes $42.6
million and $7.9 million for the three months ended March 31, 2016
and 2015, respectively, of affiliate purchased gas, NGLs,
condensate and crude oil.
|
|
(2)
|
Includes $0.1 million
for the three months ended March 31, 2016 of affiliate operating
expenses.
|
|
EnLink Midstream,
LLC
|
|
Cash Available for
Distribution
|
|
(All amounts in
millions except ratios and per unit amounts)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
Distribution declared
by ENLK associated with (1):
|
|
|
|
|
General partner interest
|
$
|
0.6
|
|
|
$
|
0.6
|
|
|
Incentive distribution rights
|
13.8
|
|
|
8.8
|
|
|
ENLK common units owned
|
34.5
|
|
|
12.3
|
|
|
Total
share of ENLK distributions declared
|
$
|
48.9
|
|
|
$
|
21.7
|
|
|
Transferred interest
EBITDA (2)
|
—
|
|
|
38.3
|
|
|
Adjusted EBITDA of
the TOM Entities (3)
|
0.9
|
|
|
$
|
—
|
|
|
Transaction
costs
|
0.7
|
|
|
$
|
—
|
|
|
Total cash
available
|
$
|
50.5
|
|
|
$
|
60.0
|
|
|
Uses of
cash:
|
|
|
|
|
General and administrative expenses
|
(1.8)
|
|
|
(0.8)
|
|
|
Current income taxes (4)
|
—
|
|
|
(4.4)
|
|
|
Interest expense
|
(0.3)
|
|
|
(0.2)
|
|
|
Maintenance capital expenditures (5)
|
—
|
|
|
(2.5)
|
|
|
Total cash
used
|
$
|
(2.1)
|
|
|
$
|
(7.9)
|
|
|
ENLC cash available
for distribution
|
$
|
48.4
|
|
|
$
|
52.1
|
|
|
|
|
|
|
Distribution declared
per ENLC unit
|
$
|
0.255
|
|
|
$
|
0.245
|
|
|
Cash distribution
declared
|
$
|
46.5
|
|
|
$
|
40.5
|
|
|
Distribution
coverage
|
1.04x
|
|
|
1.29x
|
|
|
|
|
(1)
|
Represents
distributions to be paid to ENLC on May 12, 2016 and distributions
paid to ENLC on May 14, 2015.
|
|
(2)
|
Represents ENLC's
interest in Midstream Holdings' adjusted EBITDA, which was
disbursed to ENLC by Midstream Holdings on a monthly basis, prior
to the transfer of all interest in Midstream Holdings to the
Partnership in drop down transactions ("EMH Drop Downs"). Midstream
Holdings' adjusted EBITDA is defined as earnings plus depreciation,
provision for income taxes and distributions from equity
investments less income from equity investment.
|
|
(3)
|
Represents ENLC's
interest in the TOM Entities' adjusted EBITDA, which is disbursed
to ENLC by the TOM Entities on a monthly basis. The TOM
Entities' adjusted EBITDA is defined as earnings before
depreciation and amortization and provision for income
taxes.
|
|
(4)
|
Represents ENLC's
stand-alone current tax expense.
|
|
(5)
|
Represents ENLC's
interest in Midstream Holdings' maintenance capital expenditures
prior to the EMH Drop Downs which is netted against the monthly
disbursement of Midstream Holdings' adjusted EBITDA per (2) above.
There are no maintenance capital expenditures attributable to
ENLC's share of the TOM Entities during 2016. All of the TOM
Entities' capital expenditures during 2016 are growth related which
are not considered in determining cash flow available for
distribution.
|
|
EnLink Midstream, LLC
|
|
Reconciliation of
Net Income of ENLC to ENLC Cash Available for
Distribution
|
|
(All amounts in
millions)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
Net income (loss) of
ENLC
|
$
|
(871.3)
|
|
|
$
|
25.0
|
|
|
Less: Net income (loss) attributable to ENLK
|
(560.4)
|
|
|
35.6
|
|
|
Net loss of ENLC
excluding ENLK
|
$
|
(310.9)
|
|
|
$
|
(10.6)
|
|
|
ENLC's share of
distributions from ENLK (1)
|
48.9
|
|
|
21.7
|
|
|
ENLC's interest in
the TOM Entities' depreciation
|
3.2
|
|
|
—
|
|
|
ENLC deferred income
tax (benefit) expense (2)
|
(0.8)
|
|
|
5.4
|
|
|
Maintenance capital
expenditures (3)
|
—
|
|
|
(2.5)
|
|
|
Transferred interest
EBITDA (4)
|
—
|
|
|
38.3
|
|
|
ENLC corporate
goodwill impairment
|
307.0
|
|
|
—
|
|
|
Other items
(5)
|
1.0
|
|
|
(0.2)
|
|
|
ENLC cash available
for distribution
|
$
|
48.4
|
|
|
$
|
52.1
|
|
|
|
|
(1)
|
Represents
distributions declared by ENLK and to be paid to ENLC on May 12,
2016 and distributions paid by ENLK to ENLC on May 14,
2015.
|
|
(2)
|
Represents ENLC's
stand-alone deferred taxes.
|
|
(3)
|
Represents ENLC's
interest in the adjusted EBITDA of Midstream Holdings prior to the
EMH Drop Downs. Adjusted EBITDA of Midstream Holdings is defined as
maintenance capital expenditures prior to the EMH Drop Downs netted
against the monthly disbursement of Midstream Holdings' adjusted
EBITDA. There are no maintenance capital expenditures attributable
to ENLC's share of the TOM Entities during 2016. All of the TOM
Entities' capital expenditures during 2016 are growth related which
are not considered in determining cash flow available for
distribution.
|
|
(4)
|
Represents ENLC's
interest in Midstream Holdings' adjusted EBITDA prior to the EMH
Drop Downs.
|
|
(5)
|
Represents
transaction costs and other non-cash items not included in cash
available for distributions.
|
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SOURCE EnLink Midstream