DALLAS, Feb. 20, 2018 /PRNewswire/ -- The EnLink
Midstream companies (EnLink), EnLink Midstream Partners, LP (NYSE:
ENLK) (the Partnership or ENLK) and EnLink Midstream, LLC
(NYSE: ENLC) (the General Partner or ENLC), today reported results
for the fourth quarter and full-year 2017, and provided an
operational update.
Highlights:
- Met or exceeded guidance metrics for fourth quarter and
full-year 2017 guidance
- Reaffirmed ENLC and ENLK 2018 financial and operational
guidance released on February 6,
2018
- Achieved strong volume increases across core growth regions
throughout 2017, including Central
Oklahoma, the Delaware
Basin, the Midland Basin and the Louisiana Gulf Coast
- Completed construction and placed into service strategic
development projects during 2017, including:
-
- Chisholm II and III facilities in Central Oklahoma
- Lobo II expansion in the Delaware Basin
- Greater Chickadee crude oil gathering system in the Midland
Basin
- Ascension Pipeline in southeast Louisiana
- Resumed distribution growth at ENLC beginning with fourth
quarter 2017 declared distribution; announced expectation for
distribution growth of approximately five percent in declared
distributions for full-year 2018 over full-year 2017
"Our fourth quarter performance caps off a very strong year for
EnLink," said Michael J. Garberding,
EnLink President and Chief Executive Officer. "Our team executed
tremendously well throughout 2017, resulting in extensions of our
footprint, further integration of our systems, improvements in our
strong balance sheet position, and solid growth in cash
flows. Our performance in 2017 sets the stage for a strong
2018.
"The industry has been through three years of a downturn, and
EnLink's strategic actions have positioned us for continued
growth. We're in the right places with the right partners,
and we are executing the right plan, all of which will drive strong
results for 2018 and beyond."
EnLink Midstream Partners, LP: Fourth Quarter and
Full-Year 2017 Financial Results
- The Partnership reported net income attributable to ENLK of
$75.7 million for the fourth quarter
of 2017, and $148.9 million for the
full-year 2017. Net income includes a $24.9 million tax benefit recorded as a result of
the recently enacted tax reform law known as the Tax Cuts and Jobs
Act. Comparatively, the Partnership reported a net loss
attributable to ENLK of $28.6 million
for the fourth quarter of 2016, and $565.2
million for the full-year 2016. The full-year 2016 net
loss was primarily due to a non-cash expense of $566.3
million related to impairments.
- The Partnership achieved $238.7
million of adjusted EBITDA net to ENLK for the fourth
quarter of 2017, and achieved $872.8
million for the full-year 2017. Comparatively, the
Partnership achieved $194.7 million of adjusted EBITDA
net to ENLK for the fourth quarter of 2016 and $774.6
million for the full-year 2016. Adjusted EBITDA is a
non-GAAP measure and is explained in greater detail under "Non-GAAP
Financial Information."
- The Partnership achieved net cash provided by operating
activities of $173.5 million for the
fourth quarter 2017, and $706.5
million for the full-year 2017. Comparatively, the
Partnership achieved net cash provided by operating activities
of $153.4 million for the fourth quarter of 2016,
and $662.6 million for the full-year 2016.
- Distributable cash flow was $163.7
million for the fourth quarter of 2017 and $621.1 million for the full-year 2017.
Comparatively, distributable cash flow was $146.3
million for the fourth quarter of 2016 and $607.1
million for the full-year 2016. Distributable cash flow
is a non-GAAP measure and is explained in greater detail under
"Non-GAAP Financial Information."
- Distribution coverage was 1.07x for the fourth quarter of 2017,
and 1.02x for the full-year 2017.
- Debt to adjusted EBITDA as of December
31, 2017 was 3.58x, compared to 3.70x as of December 31, 2016.
- Growth capital expenditures net to ENLK for the full-year 2017
were approximately $610 million
(excluding capitalized interest), in-line with the 2017 guidance
range of $505 million to $645 million.
- As of February 14, 2018, there were 350,022,931 ENLK
common units outstanding.
EnLink Midstream, LLC: Fourth Quarter and
Full-Year 2017 Financial Results
- The General Partner reported net income attributable to ENLC of
$202.6 million for the fourth quarter
of 2017 and $212.8 million for
full-year 2017. Net income includes a $210.6 million tax benefit recorded as a result
of the Tax Cuts and Jobs Act. Comparatively, the General
Partner reported a net loss attributable to ENLC of $3.9
million for the fourth quarter of 2016 and a 2016 full-year
net loss of $460.0 million. As noted above, the net losses
were primarily due to non-cash expenses related to
impairments.
- The General Partner's cash available for distribution was
$58.1 million for the fourth quarter
of 2017, and $216.5 million for the
full-year 2017. Comparatively, the General Partner's cash
available for distribution was $52.4 million for the
fourth quarter of 2016, and $201.7 million for the
full-year 2016. Cash available for distribution is a non-GAAP
measure and is explained in greater detail under "Non-GAAP
Financial Information."
- Distribution coverage was 1.23x for the fourth quarter of 2017,
and 1.16x for full-year 2017.
- Growth capital expenditures net to ENLC for full-year 2017 were
approximately $65 million (excluding
capitalized interest), in-line with the 2017 guidance range of
$60 million to $70 million.
- As of February 14, 2018, there were 180,883,369 ENLC
common units outstanding.
Operational Update:
- Oklahoma:
-
- EnLink's Oklahoma segment
achieved growth of more than 40 percent in segment profit and
average processing volumes for full-year 2017 as compared to
full-year 2016, and average gas gathering and transmission volumes
increased by approximately 30 percent. EnLink's Oklahoma segment is expected to achieve
approximately 50 percent growth in both average volumes and segment
profit for full-year 2018, as compared to full-year 2017.
- EnLink increased gas processing capacity at its Chisholm
complex in Central Oklahoma by 400
million cubic feet per day (MMcf/d) during 2017. With these
completed expansions, EnLink now operates 1 billion cubic feet per
day (Bcf/d) of processing capacity in Central Oklahoma, and remains one of the
largest full-service midstream providers in the STACK.
EnLink's previously announced plans to construct the Thunderbird
plant, will add 200 MMcf/d of processing capacity in Central
Oklahoma. The Thunderbird facility is expected to be
operational during the first quarter of 2019.
- The construction of EnLink's previously announced Black Coyote
crude oil gathering system is progressing well, and is expected to
be completed during the first quarter of 2018. Once the Black
Coyote system is operational, EnLink will generate revenue by
serving the full range of products produced by Devon Energy's
multi-zone large-scale developments, including natural gas, natural
gas liquids (NGL) and crude oil.
- Midland Basin:
-
- EnLink's Midland Basin natural gas system, achieved 15 percent
growth in average volumes for the full-year 2017, as compared to
full-year 2016. EnLink expects additional volume growth on its
system, as producer customers are expected to bring large scale
developments on-line during 2018, resulting in average volume
growth of around 40 percent for full-year 2018 as compared to
full-year 2017. EnLink expects to achieve around 80 percent
processing capacity utilization of its processing capacity by the
end of 2018.
- EnLink also placed into full service the Greater Chickadee
crude oil gathering system during 2017. Volumes on the system
increased steadily throughout 2017, and EnLink expects to achieve
continued growth on the system throughout 2018.
- Delaware Basin:
-
- EnLink's Delaware Basin Joint
Venture (JV) achieved significant volume growth during 2017, with
full-year 2017 average gas gathering and processing volumes
increasing by approximately 300 percent as compared to the
full-year 2016 average. EnLink expects to achieve continued volume
growth throughout 2018, with average volumes expected to increase
by approximately 150 percent for full-year 2018 as compared to the
full-year 2017 average.
- To support continued volume growth across the Delaware Basin footprint, the Delaware Basin JV expanded its Lobo II
facility by 60 MMcf/d during 2017, and plans to further expand the
facility by 15 MMcf/d in 2018. Additionally, EnLink previously
announced the construction of Lobo III, a new 200 MMcf/d expansion
expected to be fully operational around year-end 2018. Today,
EnLink's Delaware Basin JV
operates a total of 155 MMcf/d of processing capacity, with 370
MMcf/d of processing capacity expected to be operational around the
end of 2018.
- Louisiana:
-
- NGL fractionation volumes experienced 10 percent growth on
average for the full-year 2017 as compared to full-year 2016.
EnLink expects throughput on its Cajun-Sibon pipeline to reach full
capacity during 2018, largely driven by the completion of the
Chisholm II and III expansions during 2017. NGLs produced
from EnLink's Chisholm complex are preferentially shipped to
EnLink's Gulf Coast operations for further transportation,
fractionation and downstream value creation.
- Record gas gathering and transmission volumes of over 2 Bcf/d
were achieved on EnLink's Louisiana gas system during the second half of
2017, as demand across the footprint remained robust and EnLink
continued to enhance operational capacity and capture new
business.
- Barnett Shale:
-
- Producer customers have become increasingly active in the
Barnett Shale, with one to two rigs expected to be operating on
EnLink's dedicated acreage throughout 2018. Redevelopment
activity, new well drilling, and pressure optimization initiatives
are projected to reduce annual volume decline for 2018, as compared
to 2017.
- EnLink's key producer customer in the Barnett Shale,
Devon recently announced results
related to its 6-well drilling pilot that leveraged an improved
completion design. Initial 30-day production rates from this
6-well pilot program attained per-well rates as high as 6.5 million
cubic feet equivalent per day, with capital costs of approximately
$3 million per well.
Devon also announced its 2018
capital outlook, and plans to allocate $50
million to Barnett operations during 2018.
- Additionally, Devon provided
an update regarding its intent to divest select portions of
its Barnett Shale position, with a focus on Johnson
County and surrounding areas. EnLink holds acreage dedication
rights related to Devon's East
Johnson County operations, with current midstream services provided
in this area representing approximately seven percent of EnLink's
total North Texas gross operating margin for both
2017 and 2018. Devon
announced that it is currently in advanced negotiations with a
preferred buyer, and a sale announcement is expected by
March 31, 2018.
Fourth Quarter and Full-Year 2017 Results Call
Details
The General Partner and the Partnership will hold a conference
call to discuss fourth quarter and full-year 2017 financial results
on Wednesday, February 21, 2018, at 9
a.m. Central Time (10 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/10115154 where they will
receive dial-in information upon completion of preregistration.
Interested parties can access an archived replay of the call on the
Investors' page of EnLink's website at www.EnLink.com.
About the EnLink Midstream Companies
EnLink provides integrated midstream services across natural
gas, crude oil, condensate, and NGL commodities. EnLink
operates in several top U.S. basins and is strategically focused on
the core growth areas of the Permian's Midland
and Delaware basins, Oklahoma's Midcontinent,
and Louisiana's Gulf Coast. Headquartered in Dallas,
EnLink is publicly traded through EnLink Midstream,
LLC (NYSE: ENLC), the General Partner, and EnLink
Midstream Partners, LP (NYSE: ENLK), the Master Limited
Partnership. Visitwww.EnLink.com for more information on how
EnLink connects energy to life.
Non-GAAP Financial Information
This press release
contains non-generally accepted accounting principles ("GAAP")
financial measures that we refer to as adjusted EBITDA,
distributable cash flow available to common unitholders
("distributable cash flow"), gross operating margin, and the
General Partner's cash available for distribution.
We define adjusted EBITDA as net income (loss) plus interest
expense, provision (benefit) for income taxes, depreciation and
amortization expense, impairments, unit-based compensation, (gain)
loss on non-cash derivatives, (gain) loss on disposition of assets,
(gain) loss on extinguishment of debt, successful acquisition
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 obligations, non-controlling
interest and (income) loss from unconsolidated affiliate
investments.
We define distributable cash flow as adjusted EBITDA (as defined
above), net to the Partnership, less interest expense (excluding
amortization of the EnLink Oklahoma Gas Processing LP (together
with its subsidiaries, "EnLink Oklahoma T.O.") acquisition
installment payable discount), litigation settlement adjustment,
adjustments for the redeemable non-controlling interest, interest
rate swaps, current income taxes and other non-distributable cash
flows, accrued cash distributions on Series B Cumulative
Convertible Preferred Units (the "Series B Preferred Units") and
Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual
Preferred Units (the "Series C Preferred Units") paid or expected
to be paid, and maintenance capital expenditures, excluding
maintenance capital expenditures that were contributed by other
entities and relate to the non-controlling interest share of our
consolidated entities.
We define gross operating margin as revenues less cost of
sales.
The General Partner's cash available for distribution is defined
as net income (loss) of the General Partner less the net income
(loss) attributable to the Partnership, which is consolidated into
the General Partner's net income (loss), plus the General Partner's
(i) share of distributions from the Partnership, (ii) share of
EnLink Oklahoma T.O. non-cash expenses, (iii) deferred income tax
(benefit) expense, (iv) corporate goodwill impairment, (v)
acquisition transaction costs attributable to its share of the
EnLink Oklahoma T.O. acquisition, less the General Partner's
interest in maintenance capital expenditures of EnLink Oklahoma
T.O. and less third-party non-controlling interest share of net
income (loss) from consolidated affiliates.
The Partnership's distribution coverage is calculated by
dividing distributable cash flow by distributions declared to the
General Partner and the common unitholders. The General Partner's
distribution coverage is calculated by dividing cash available for
distribution by distributions declared by the General Partner.
Growth capital expenditures generally include capital
expenditures made for acquisitions or capital improvements that we
expect will increase our asset base, operating income or operating
capacity over the long-term.
Maintenance capital expenditures generally include 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.
Segment profit (loss) is defined as operating income (loss) plus
general and administrative expenses, depreciation and amortization,
(gain) loss on disposition of assets, impairments and (gain) loss
on litigation settlement. Segment profit (loss) includes non-cash
compensation expenses reflected in operating expenses. See "Item 1.
Financial Statements- Note 14 Segment Information" in ENLK's
Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 and, when available, "Item 1.
Financial Statements- Note 15 Segment Information" in ENLK's Annual
Report on Form 10-K for the year ended December 31, 2017, for further information about
segment profit (loss).
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 previously reported results and a meaningful measure of
the Partnership's and the General Partner's cash flow after
satisfaction of the capital and related requirements of their
respective operations. In addition, adjusted EBITDA
achievement is a primary metric used in the Partnership's credit
facility and short-term incentive program for compensating its
employees.
Gross operating margin, adjusted EBITDA, distributable cash flow
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 for the periods that are
presented in this press release are included in the following
tables. See ENLK's and ENLC's filings with
the Securities and Exchange Commission for more
information.
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.
Therefore, you should not rely on any of these forward-looking
statements. All statements, other than statements of historical
fact, included in this press release constitute forward-looking
statements, including but not limited to statements identified by
the words "forecast," "may," "believe," "will," "should," "plan,"
"predict," "anticipate," "intend," "estimate" and "expect" and
similar expressions. Such forward-looking statements include, but
are not limited to, statements about guidance, projected or
forecasted financial and operating results, when additional
capacity will be operational, operational results of our customers,
results in certain basins, future rig count information,
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) conducting certain of our
operations through joint ventures, (k) reductions in our credit
ratings, (l) our debt levels and restrictions contained in our
debt documents, (m) our ability to consummate future
acquisitions, successfully integrate any acquired businesses,
realize any cost savings and other synergies from any acquisition,
(n) changes in the availability and cost of capital,
(o) competitive conditions in our industry and their impact on
our ability to connect hydrocarbon supplies to our assets,
(p) operating hazards, natural disasters, weather-related
delays, casualty losses and other matters beyond our control,
(q) a failure in our computing systems or a cyber-attack on
our systems, and (r) 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.
The assumptions and estimates underlying the forecasted
financial information included in the guidance information in this
press release are inherently uncertain and, though considered
reasonable by the EnLink Midstream management team as of the date
of its preparation, are subject to a wide variety of significant
business, economic, and competitive risks and uncertainties that
could cause actual results to differ materially from those
contained in the forecasted financial information. Accordingly,
there can be no assurance that the forecasted results are
indicative of EnLink Midstream's future performance or that actual
results will not differ materially from those presented in the
forecasted financial information. Inclusion of the forecasted
financial information in this press release should not be regarded
as a representation by any person that the results contained in the
forecasted financial information will be achieved.
EnLink Midstream
Partners, LP
|
Selected Financial
Data
|
(All amounts in
millions except per unit amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
|
|
|
Total
revenues
|
$
|
1,756.2
|
|
|
$
|
1,224.9
|
|
|
$
|
5,739.6
|
|
|
$
|
4,252.4
|
|
Cost of
sales
|
1,373.6
|
|
|
908.7
|
|
|
4,361.5
|
|
|
3,015.5
|
|
Gross operating
margin
|
382.6
|
|
|
316.2
|
|
|
1,378.1
|
|
|
1,236.9
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Operating
expenses
|
109.9
|
|
|
102.2
|
|
|
418.7
|
|
|
398.5
|
|
General and
administrative
|
28.9
|
|
|
28.7
|
|
|
123.5
|
|
|
119.3
|
|
(Gain) loss on
disposition of assets
|
(0.8)
|
|
|
16.1
|
|
|
—
|
|
|
13.2
|
|
Depreciation and
amortization
|
138.2
|
|
|
130.9
|
|
|
545.3
|
|
|
503.9
|
|
Impairments
|
8.3
|
|
|
—
|
|
|
17.1
|
|
|
566.3
|
|
Gain on litigation
settlement
|
—
|
|
|
—
|
|
|
(26.0)
|
|
|
—
|
|
Total operating costs
and expenses, excluding cost of sales
|
284.5
|
|
|
277.9
|
|
|
1,078.6
|
|
|
1,601.2
|
|
Operating income
(loss)
|
98.1
|
|
|
38.3
|
|
|
299.5
|
|
|
(364.3)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(47.4)
|
|
|
(50.2)
|
|
|
(187.9)
|
|
|
(188.1)
|
|
Gain on
extinguishment of debt
|
—
|
|
|
—
|
|
|
9.0
|
|
|
—
|
|
Income (loss) from
unconsolidated affiliates
|
4.6
|
|
|
(19.4)
|
|
|
9.6
|
|
|
(19.9)
|
|
Other
income
|
0.1
|
|
|
0.2
|
|
|
0.6
|
|
|
0.3
|
|
Total other
expense
|
(42.7)
|
|
|
(69.4)
|
|
|
(168.7)
|
|
|
(207.7)
|
|
Income (loss) before
non-controlling interest and income taxes
|
55.4
|
|
|
(31.1)
|
|
|
130.8
|
|
|
(572.0)
|
|
Income tax benefit
(provision)
|
24.7
|
|
|
—
|
|
|
24.0
|
|
|
(1.3)
|
|
Net income
(loss)
|
80.1
|
|
|
(31.1)
|
|
|
154.8
|
|
|
(573.3)
|
|
Net income (loss)
attributable to non-controlling interest
|
4.4
|
|
|
(2.5)
|
|
|
5.9
|
|
|
(8.1)
|
|
Net income (loss)
attributable to EnLink Midstream Partners, LP
|
$
|
75.7
|
|
|
$
|
(28.6)
|
|
|
$
|
148.9
|
|
|
$
|
(565.2)
|
|
General partner
interest in net income
|
$
|
11.0
|
|
|
$
|
10.7
|
|
|
$
|
38.3
|
|
|
$
|
39.5
|
|
Limited partners'
interest in net income (loss) attributable to EnLink Midstream
Partners, LP
|
$
|
36.3
|
|
|
$
|
(60.0)
|
|
|
$
|
17.9
|
|
|
$
|
(662.1)
|
|
Class C partners'
interest in net loss attributable to EnLink Midstream Partners,
LP
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(12.5)
|
|
Series B preferred
interest in net income attributable to EnLink Midstream Partners,
LP
|
$
|
22.4
|
|
|
$
|
20.7
|
|
|
$
|
86.0
|
|
|
$
|
69.9
|
|
Series C preferred
interest in net income attributable to EnLink Midstream Partners,
LP
|
$
|
6.0
|
|
|
$
|
—
|
|
|
$
|
6.7
|
|
|
$
|
—
|
|
Net income (loss)
attributable to EnLink Midstream Partners, LP per limited partners'
unit:
|
|
|
|
|
|
|
|
Basic common
unit
|
$
|
0.10
|
|
|
$
|
(0.18)
|
|
|
$
|
0.05
|
|
|
$
|
(1.99)
|
|
Diluted common
unit
|
$
|
0.10
|
|
|
$
|
(0.18)
|
|
|
$
|
0.05
|
|
|
$
|
(1.99)
|
|
EnLink Midstream
Partners, LP
|
Reconciliation of
Net Income (Loss) to Adjusted EBITDA and
|
Distributable Cash
Flow and Calculation of Coverage Ratio
|
(All amounts in
millions except ratios and per unit amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
(loss)
|
$
|
80.1
|
|
|
$
|
(31.1)
|
|
|
$
|
154.8
|
|
|
$
|
(573.3)
|
|
Interest expense, net
of interest income
|
47.4
|
|
|
50.2
|
|
|
187.9
|
|
|
188.1
|
|
Depreciation and
amortization
|
138.2
|
|
|
130.9
|
|
|
545.3
|
|
|
503.9
|
|
Impairments
|
8.3
|
|
|
—
|
|
|
17.1
|
|
|
566.3
|
|
(Income) loss from
unconsolidated affiliate investments (1)
|
(4.6)
|
|
|
19.4
|
|
|
(9.6)
|
|
|
19.9
|
|
Distributions from
unconsolidated affiliate investments (2)
|
2.1
|
|
|
5.5
|
|
|
13.5
|
|
|
25.0
|
|
(Gain) loss on
disposition of assets
|
(0.8)
|
|
|
16.1
|
|
|
—
|
|
|
13.2
|
|
Gain on
extinguishment of debt
|
—
|
|
|
—
|
|
|
(9.0)
|
|
|
—
|
|
Unit-based
compensation
|
9.1
|
|
|
7.5
|
|
|
47.8
|
|
|
30.0
|
|
Income tax provision
(benefit)
|
(24.7)
|
|
|
—
|
|
|
(24.0)
|
|
|
1.3
|
|
(Gain) loss on
non-cash derivatives
|
(0.9)
|
|
|
4.2
|
|
|
(4.7)
|
|
|
20.1
|
|
Payments under
onerous performance obligation offset to other current and
long-term liabilities
|
(4.4)
|
|
|
(4.4)
|
|
|
(17.9)
|
|
|
(17.9)
|
|
Other (3)
|
1.1
|
|
|
(0.9)
|
|
|
4.6
|
|
|
6.9
|
|
Adjusted EBITDA
before non-controlling interest
|
$
|
250.9
|
|
|
$
|
197.4
|
|
|
$
|
905.8
|
|
|
$
|
783.5
|
|
Non-controlling
interest share of adjusted EBITDA (4)
|
(12.2)
|
|
|
(2.7)
|
|
|
(33.0)
|
|
|
(8.9)
|
|
Adjusted EBITDA, net
to EnLink Midstream Partners, LP
|
$
|
238.7
|
|
|
$
|
194.7
|
|
|
$
|
872.8
|
|
|
$
|
774.6
|
|
Interest expense, net
of interest income
|
(47.4)
|
|
|
(50.2)
|
|
|
(187.9)
|
|
|
(188.1)
|
|
Amortization of
EnLink Oklahoma T.O. installment payable discount included in
interest expense (5)
|
6.5
|
|
|
13.3
|
|
|
26.4
|
|
|
52.3
|
|
Litigation settlement
adjustment (6)
|
—
|
|
|
—
|
|
|
(18.1)
|
|
|
—
|
|
Non-cash adjustment
for redeemable non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
Interest rate swap
(7)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
Current taxes and
other
|
(1.6)
|
|
|
(0.3)
|
|
|
(2.5)
|
|
|
(1.9)
|
|
Maintenance capital
expenditures, net to EnLink Midstream Partners, LP (8)
|
(10.4)
|
|
|
(11.2)
|
|
|
(30.9)
|
|
|
(30.5)
|
|
Preferred unit
accrued cash distributions (9)
|
(22.1)
|
|
|
—
|
|
|
(38.7)
|
|
|
—
|
|
Distributable cash
flow
|
$
|
163.7
|
|
|
$
|
146.3
|
|
|
$
|
621.1
|
|
|
$
|
607.1
|
|
|
|
|
|
|
|
|
|
Actual declared
distribution to common unitholders
|
$
|
152.4
|
|
|
$
|
149.8
|
|
|
$
|
607.9
|
|
|
$
|
587.5
|
|
Distribution
Coverage
|
1.07x
|
|
|
0.98x
|
|
|
1.02x
|
|
|
1.03x
|
|
Distributions
declared per limited partner unit
|
$
|
0.39
|
|
|
$
|
0.39
|
|
|
$
|
1.56
|
|
|
$
|
1.56
|
|
|
|
(1)
|
Includes a loss of
$3.4 million for the year ended December 31, 2017 and $20.1 million
for the three months and year ended December 31, 2016 related to
the sale of our HEP interests.
|
|
|
(2)
|
Distributions for the
year ended December 31, 2016 do not include $32.7 million of
distributions received from HEP during the third quarter of 2016
attributable to the redemption of preferred units. The preferred
units were issued to us by HEP during the second and third quarters
of 2016 for contributions of $29.5 million and $3.2 million,
respectively.
|
|
|
(3)
|
Includes accretion
expense associated with asset retirement obligations; reimbursed
employee costs from Devon and LPC Crude Oil Marketing LLC ("LPC");
successful acquisition transaction costs, which we do not consider
in determining adjusted EBITDA because operating cash flows are not
used to fund such costs; and non-cash rent, which relates to lease
incentives pro-rated over the lease term.
|
|
|
(4)
|
Non-controlling
interest share of adjusted EBITDA includes ENLC's 16.1% share of
adjusted EBITDA from EnLink Oklahoma T.O., which was acquired in
January 2016, NGP Natural Resources XI, L.P.'s ("NGP") 49.9% share
of adjusted EBITDA from the Delaware Basin JV, which was formed in
August 2016, Marathon Petroleum's 50% share of adjusted EBITDA from
the Ascension JV, which began operations in April 2017, and other
minor non-controlling interests.
|
|
|
(5)
|
Amortization of the
EnLink Oklahoma T.O. installment payable discount is considered
non-cash interest under our credit facility since the payment under
the payable is consideration for the acquisition of the EnLink
Oklahoma T.O. assets.
|
|
|
(6)
|
Represents recoveries
from litigation settlement for amounts not previously deducted from
distributable cash flow.
|
|
|
(7)
|
During 2016, we
entered into an interest rate swap arrangement to mitigate our
exposure to interest rate movements prior to our note issuance. The
gain on settlement of the interest rate swaps was considered excess
proceeds for the note issuance and is therefore excluded from
distributable cash flow.
|
|
|
(8)
|
Excludes maintenance
capital expenditures that were contributed by other entities and
relate to the non-controlling interest share of our consolidated
entities.
|
|
|
(9)
|
Represents the cash
distributions earned by the Series B Preferred Units of $16.1
million and $32.0 million for the three months and year ended
December 31, 2017, respectively, and $6.0 million and $6.7
million earned by the Series C Preferred Units for the three months
and year ended December 31, 2017, respectively. Cash
distributions to be paid to holders of the Series B Preferred Units
and Series C Preferred Units are not available to common
unitholders.
|
EnLink Midstream
Partners, LP
|
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted
EBITDA
|
and Distributable
Cash Flow
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net cash provided by
operating activities
|
$
|
173.5
|
|
|
$
|
153.4
|
|
|
$
|
706.5
|
|
|
$
|
662.6
|
|
Interest expense, net
(1)
|
39.9
|
|
|
36.6
|
|
|
158.8
|
|
|
135.3
|
|
Current income tax
expense
|
1.7
|
|
|
0.3
|
|
|
2.6
|
|
|
1.9
|
|
Distributions from
unconsolidated affiliate investment in excess of earnings
(2)
|
(7.1)
|
|
|
3.0
|
|
|
0.2
|
|
|
21.9
|
|
Other (3)
|
2.3
|
|
|
(2.2)
|
|
|
6.3
|
|
|
4.2
|
|
Changes in operating
assets and liabilities which (provided) used cash:
|
|
|
|
|
|
|
|
Accounts receivable,
accrued revenues, inventories and other
|
107.7
|
|
|
93.5
|
|
|
213.2
|
|
|
107.7
|
|
Accounts payable,
accrued gas and crude oil purchases and other (4)
|
(67.1)
|
|
|
(87.2)
|
|
|
(181.8)
|
|
|
(150.1)
|
|
Adjusted EBITDA
before non-controlling interest
|
$
|
250.9
|
|
|
$
|
197.4
|
|
|
$
|
905.8
|
|
|
$
|
783.5
|
|
Non-controlling
interest share of adjusted EBITDA (5)
|
(12.2)
|
|
|
(2.7)
|
|
|
(33.0)
|
|
|
(8.9)
|
|
Adjusted EBITDA, net
to EnLink Midstream Partners, LP
|
$
|
238.7
|
|
|
$
|
194.7
|
|
|
$
|
872.8
|
|
|
$
|
774.6
|
|
Interest expense, net
of interest income
|
(47.4)
|
|
|
(50.2)
|
|
|
(187.9)
|
|
|
(188.1)
|
|
Amortization of
EnLink Oklahoma T.O. installment payable discount included in
interest expense (6)
|
6.5
|
|
|
13.3
|
|
|
26.4
|
|
|
52.3
|
|
Litigation settlement
adjustment (7)
|
—
|
|
|
—
|
|
|
(18.1)
|
|
|
—
|
|
Non-cash adjustment
for redeemable non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
Interest rate swap
(8)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
Current taxes and
other
|
(1.6)
|
|
|
(0.3)
|
|
|
(2.5)
|
|
|
(1.9)
|
|
Maintenance capital
expenditures, net to EnLink Midstream Partners, LP (9)
|
(10.4)
|
|
|
(11.2)
|
|
|
(30.9)
|
|
|
(30.5)
|
|
Preferred unit
accrued cash distributions (10)
|
(22.1)
|
|
|
—
|
|
|
(38.7)
|
|
|
—
|
|
Distributable cash
flow
|
$
|
163.7
|
|
|
$
|
146.3
|
|
|
$
|
621.1
|
|
|
$
|
607.1
|
|
|
|
(1)
|
Net of amortization
of debt issuance costs, discount and premium, and valuation
adjustment for redeemable non-controlling interest included in
interest expense but not included in net cash provided by operating
activities.
|
|
|
(2)
|
Distributions for the
year ended December 31, 2016 do not include $32.7 million of
distributions received from HEP during the third quarter of 2016
attributable to the redemption of preferred units. The preferred
units were issued to us by HEP during the second and third quarters
of 2016 for contributions of $29.5 million and $3.2 million,
respectively.
|
|
|
(3)
|
Includes successful
acquisition transaction costs, which we do not consider in
determining adjusted EBITDA because operating cash flows are not
used to fund such costs, non-cash rent, which relates to lease
incentives pro-rated over the lease term, gains and losses on
settled interest rate swaps designated as hedges related to debt
issuances, which are recorded in other comprehensive income (loss),
and reimbursed employee costs from Devon and LPC, which are costs
reimbursed to us by previous employers pursuant to acquisition or
merger.
|
|
|
(4)
|
Net of payments under
onerous performance obligation offset to other current and
long-term liabilities.
|
|
|
(5)
|
Non-controlling
interest share of adjusted EBITDA includes ENLC's 16.1% share of
adjusted EBITDA from EnLink Oklahoma T.O., which was acquired in
January 2016, NGP's 49.9% share of adjusted EBITDA from the
Delaware Basin JV, which was formed in August 2016, Marathon
Petroleum's 50% share of adjusted EBITDA from the Ascension JV,
which began operations in April 2017, and other minor
non-controlling interests.
|
|
|
(6)
|
Amortization of the
EnLink Oklahoma T.O. installment payable discount is considered
non-cash interest under our credit facility since the payment under
the payable is consideration for the acquisition of the EnLink
Oklahoma T.O. assets.
|
|
|
(7)
|
Represents recoveries
from litigation settlement for amounts not previously deducted from
distributable cash flow.
|
|
|
(8)
|
During 2016, we
entered into an interest rate swap arrangement to mitigate our
exposure to interest rate movements prior to our note issuance. The
gain on settlement of the interest rate swaps was considered excess
proceeds for the note issuance and is therefore excluded from
distributable cash flow.
|
|
|
(9)
|
Excludes maintenance
capital expenditures that were contributed by other entities and
relate to the non-controlling interest share of our consolidated
entities.
|
|
|
(10)
|
Represents the cash
distributions earned by the Series B Preferred Units of $16.1
million and $32.0 million for the three months and year ended
December 31, 2017, respectively, and $6.0 million and $6.7
million earned by the Series C Preferred Units for the three months
and year ended December 31, 2017, respectively. Cash
distributions to be paid to holders of the Series B Preferred Units
and Series C Preferred Units are not available to common
unitholders.
|
EnLink Midstream
Partners, LP
|
Operating
Data
|
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Midstream
Volumes:
|
|
|
|
|
|
|
|
Texas
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d) (1)
|
2,254,100
|
|
|
2,518,100
|
|
|
2,262,900
|
|
|
2,622,600
|
|
Processing
(MMBtu/d)
|
1,201,100
|
|
|
1,128,200
|
|
|
1,184,400
|
|
|
1,173,100
|
|
Louisiana
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,101,200
|
|
|
1,897,600
|
|
|
1,995,800
|
|
|
1,676,600
|
|
Processing
(MMBtu/d)
|
455,700
|
|
|
472,100
|
|
|
453,300
|
|
|
490,300
|
|
NGL Fractionation
(Gals/d)
|
6,200,500
|
|
|
5,204,300
|
|
|
5,772,800
|
|
|
5,197,100
|
|
Oklahoma
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
953,600
|
|
|
644,200
|
|
|
829,300
|
|
|
626,300
|
|
Processing
(MMBtu/d)
|
978,700
|
|
|
584,100
|
|
|
810,300
|
|
|
574,900
|
|
Crude and
Condensate
|
|
|
|
|
|
|
|
Crude Oil Handling
(Bbls/d)
|
119,200
|
|
|
81,200
|
|
|
108,200
|
|
|
94,000
|
|
Brine Disposal
(Bbls/d)
|
2,900
|
|
|
3,800
|
|
|
4,200
|
|
|
3,600
|
|
|
|
(1)
|
Gathering and
transportation volumes in Texas for the three months and year ended
December 31, 2016 included 232,000 and 257,000 MMBtu/d,
respectively, related to the North Texas Pipeline, which was
divested in the fourth quarter of 2016.
|
EnLink Midstream,
LLC
|
Selected Financial
Data
|
(All amounts in
millions except per unit amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
|
|
|
Total
revenues
|
$
|
1,756.2
|
|
|
$
|
1,224.9
|
|
|
$
|
5,739.6
|
|
|
$
|
4,252.4
|
|
Cost of
sales
|
1,373.6
|
|
|
908.7
|
|
|
4,361.5
|
|
|
3,015.5
|
|
Gross operating
margin
|
382.6
|
|
|
316.2
|
|
|
1,378.1
|
|
|
1,236.9
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Operating
expenses
|
109.9
|
|
|
102.2
|
|
|
418.7
|
|
|
398.5
|
|
General and
administrative
|
30.1
|
|
|
27.8
|
|
|
128.6
|
|
|
122.5
|
|
(Gain) loss on
disposition of assets
|
(0.8)
|
|
|
16.1
|
|
|
—
|
|
|
13.2
|
|
Depreciation and
amortization
|
138.2
|
|
|
130.9
|
|
|
545.3
|
|
|
503.9
|
|
Impairments
|
8.3
|
|
|
—
|
|
|
17.1
|
|
|
873.3
|
|
Gain on litigation
settlement
|
—
|
|
|
—
|
|
|
(26.0)
|
|
|
—
|
|
Total operating
costs and expenses, excluding cost of sales
|
285.7
|
|
|
277.0
|
|
|
1,083.7
|
|
|
1,911.4
|
|
Operating income
(loss)
|
96.9
|
|
|
39.2
|
|
|
294.4
|
|
|
(674.5)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(48.2)
|
|
|
(50.6)
|
|
|
(190.4)
|
|
|
(189.5)
|
|
Gain on
extinguishment of debt
|
—
|
|
|
—
|
|
|
9.0
|
|
|
—
|
|
Income (loss) from
unconsolidated affiliates
|
4.6
|
|
|
(19.4)
|
|
|
9.6
|
|
|
(19.9)
|
|
Other
income
|
0.1
|
|
|
0.2
|
|
|
0.6
|
|
|
0.3
|
|
Total other
expense
|
(43.5)
|
|
|
(69.8)
|
|
|
(171.2)
|
|
|
(209.1)
|
|
Income (loss) before
non-controlling interest and income taxes
|
53.4
|
|
|
(30.6)
|
|
|
123.2
|
|
|
(883.6)
|
|
Income tax benefit
(provision)
|
206.1
|
|
|
1.4
|
|
|
196.8
|
|
|
(4.6)
|
|
Net income
(loss)
|
259.5
|
|
|
(29.2)
|
|
|
320.0
|
|
|
(888.2)
|
|
Net income (loss)
attributable to non-controlling interest
|
56.9
|
|
|
(25.3)
|
|
|
107.2
|
|
|
(428.2)
|
|
Net income (loss)
attributable to EnLink Midstream, LLC
|
$
|
202.6
|
|
|
$
|
(3.9)
|
|
|
$
|
212.8
|
|
|
$
|
(460.0)
|
|
Net income (loss)
attributable to EnLink Midstream, LLC per unit:
|
|
|
|
|
|
|
|
Basic common
unit
|
$
|
1.12
|
|
|
$
|
(0.02)
|
|
|
$
|
1.18
|
|
|
$
|
(2.56)
|
|
Diluted common
unit
|
$
|
1.11
|
|
|
$
|
(0.02)
|
|
|
$
|
1.17
|
|
|
$
|
(2.56)
|
|
EnLink Midstream,
LLC
|
Cash Available for
Distribution and Calculation of Coverage Ratio
|
(All amounts in
millions except ratios and per unit amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Distribution declared
by ENLK associated with (1):
|
|
|
|
|
|
|
|
General partner
interest
|
$
|
0.6
|
|
|
$
|
0.5
|
|
|
$
|
2.5
|
|
|
$
|
2.1
|
|
Incentive
distribution rights
|
14.8
|
|
|
14.4
|
|
|
58.9
|
|
|
56.8
|
|
ENLK common units
owned
|
34.5
|
|
|
34.5
|
|
|
138.1
|
|
|
138.1
|
|
Total share of
ENLK distributions declared
|
$
|
49.9
|
|
|
$
|
49.4
|
|
|
$
|
199.5
|
|
|
$
|
197.0
|
|
Adjusted EBITDA of
EnLink Oklahoma T.O. (2)
|
7.7
|
|
|
3.1
|
|
|
22.3
|
|
|
9.0
|
|
Transaction costs
(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
Total cash
available
|
$
|
57.6
|
|
|
$
|
52.5
|
|
|
$
|
221.8
|
|
|
$
|
206.6
|
|
Uses of
cash:
|
|
|
|
|
|
|
|
General and
administrative expenses
|
(1.1)
|
|
|
1.0
|
|
|
(4.8)
|
|
|
(2.8)
|
|
Current income taxes
(4)
|
2.5
|
|
|
(0.6)
|
|
|
2.2
|
|
|
(0.6)
|
|
Interest
expense
|
(0.8)
|
|
|
(0.4)
|
|
|
(2.5)
|
|
|
(1.4)
|
|
Maintenance capital
expenditures (5)
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.2)
|
|
|
(0.1)
|
|
Total cash
used
|
$
|
0.5
|
|
|
$
|
(0.1)
|
|
|
$
|
(5.3)
|
|
|
$
|
(4.9)
|
|
ENLC cash available
for distribution
|
$
|
58.1
|
|
|
$
|
52.4
|
|
|
$
|
216.5
|
|
|
$
|
201.7
|
|
|
|
|
|
|
|
|
|
Actual declared
distribution to common unitholders
|
$
|
47.1
|
|
|
$
|
46.5
|
|
|
$
|
187.0
|
|
|
$
|
185.9
|
|
Distribution
Coverage
|
1.23x
|
|
|
1.13x
|
|
|
1.16x
|
|
|
1.09x
|
|
Distributions
declared per ENLC unit
|
$
|
0.259
|
|
|
$
|
0.255
|
|
|
$
|
1.024
|
|
|
$
|
1.020
|
|
|
|
(1)
|
Represents
distributions paid on February 13, 2018, November 13, 2017, August
11, 2017, May 12, 2017, February 13, 2017, November 11, 2016,
August 11, 2016 and May 12, 2016.
|
|
|
(2)
|
Represents ENLC's
interest in EnLink Oklahoma T.O. adjusted EBITDA, which is
disbursed to ENLC by EnLink Oklahoma T.O. on a monthly basis.
EnLink Oklahoma T.O. adjusted EBITDA is defined as earnings before
depreciation and amortization and provision for income taxes and
includes allocated expenses from ENLK.
|
|
|
(3)
|
Represents
acquisition transaction costs attributable to ENLC's 16.1% interest
in EnLink Oklahoma T.O, which are considered growth capital
expenditures as part of the cost of the assets acquired.
|
|
|
(4)
|
Represents ENLC's
stand-alone current tax expense or benefit.
|
|
|
(5)
|
Represents ENLC's
interest in EnLink Oklahoma T.O.'s maintenance capital
expenditures, which is netted against the monthly disbursement of
EnLink Oklahoma T.O.s' adjusted EBITDA per (2) above.
|
EnLink Midstream,
LLC
|
Reconciliation of
Net Income (Loss) of ENLC to ENLC Cash Available for
Distribution
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income (loss) of
ENLC
|
$
|
259.5
|
|
|
$
|
(29.2)
|
|
|
$
|
320.0
|
|
|
$
|
(888.2)
|
|
Less: Net income
(loss) attributable to ENLK
|
75.7
|
|
|
(28.6)
|
|
|
148.9
|
|
|
(565.2)
|
|
Net income (loss) of
ENLC excluding ENLK
|
$
|
183.8
|
|
|
$
|
(0.6)
|
|
|
$
|
171.1
|
|
|
$
|
(323.0)
|
|
ENLC's share of
distributions from ENLK (1)
|
49.9
|
|
|
49.5
|
|
|
199.5
|
|
|
197.0
|
|
ENLC's interest in
EnLink Oklahoma T.O.'s non-cash expenses (2)
|
4.6
|
|
|
3.9
|
|
|
17.4
|
|
|
14.3
|
|
ENLC deferred income
tax (benefit) expense (3)
|
(178.9)
|
|
|
(1.9)
|
|
|
(170.6)
|
|
|
2.8
|
|
ENLC corporate
goodwill impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
307.0
|
|
Non-controlling
interest share of ENLK's net (income) loss (4)
|
(1.4)
|
|
|
1.5
|
|
|
(1.1)
|
|
|
2.6
|
|
Other items
(5)
|
0.1
|
|
|
—
|
|
|
0.2
|
|
|
1.0
|
|
ENLC cash available
for distribution
|
$
|
58.1
|
|
|
$
|
52.4
|
|
|
$
|
216.5
|
|
|
$
|
201.7
|
|
|
|
(1)
|
Represents
distributions paid on February 13, 2018, November 13, 2017, August
11, 2017, May 12, 2017, February 13, 2017, November 11, 2016,
August 11, 2016 and May 12, 2016.
|
|
|
(2)
|
Includes depreciation
and amortization and unit-based compensation expense allocated to
EnLink Oklahoma T.O. for the year ended December 31, 2017, and
depreciation and amortization for the year ended December 31,
2016.
|
|
|
(3)
|
Represents ENLC's
stand-alone deferred taxes. The deferred income tax benefit for the
year ended December 31, 2017 included an adjustment to deferred
income tax expense of $185.7 million related to a reduction in
ENLC's federal statutory rate from 35% to 21%.
|
|
|
(4)
|
Represents NGP's
49.9% share of adjusted EBITDA from the Delaware Basin JV, which
was formed in August 2016, Marathon Petroleum's 50% share of
adjusted EBITDA from the Ascension JV, which began operations in
April 2017, and other minor non-controlling
interests.
|
|
|
(5)
|
Represents ENLC's
interest in EnLink Oklahoma T.O.'s maintenance capital expenditures
(which is netted against the monthly disbursement of EnLink
Oklahoma T.O.'s adjusted EBITDA), transaction costs attributable to
ENLC's share of the acquisition of EnLink Oklahoma T.O. for
the three months and year ended December 31, 2016, and other
non-cash items not included in cash available for
distributions.
|
EnLink Midstream
Partners, LP
|
Forward-Looking
Reconciliation of Net Income to Adjusted EBITDA and Distributable
Cash Flow (1)
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
2018
Outlook
|
|
Low
|
|
Midpoint
|
|
High
|
Net income
(2)
|
$
|
255
|
|
|
$
|
285
|
|
|
$
|
315
|
|
Interest expense, net
of interest income
|
175
|
|
|
179
|
|
|
183
|
|
Depreciation and
amortization
|
554
|
|
|
564
|
|
|
574
|
|
Income from
unconsolidated affiliate investments
|
(19)
|
|
|
(20)
|
|
|
(21)
|
|
Distribution from
unconsolidated affiliate investments
|
16
|
|
|
17
|
|
|
18
|
|
Unit-based
compensation
|
42
|
|
|
37
|
|
|
32
|
|
Income
taxes
|
4
|
|
|
5
|
|
|
6
|
|
Payments under
onerous performance obligation offset to other current and
long-term liabilities
|
(18)
|
|
|
(18)
|
|
|
(18)
|
|
Adjusted EBITDA
before non-controlling interest
|
$
|
1,009
|
|
|
$
|
1,049
|
|
|
$
|
1,089
|
|
Non-controlling
interest share of adjusted EBITDA (3)
|
(59)
|
|
|
(64)
|
|
|
(69)
|
|
Adjusted EBITDA, net
to EnLink Midstream Partners, LP
|
$
|
950
|
|
|
$
|
985
|
|
|
$
|
1,020
|
|
Interest expense, net
of interest income
|
(175)
|
|
|
(179)
|
|
|
(183)
|
|
Preferred unit
accrued cash distributions
|
(89)
|
|
|
(89)
|
|
|
(89)
|
|
Current taxes and
other
|
(1)
|
|
|
(5)
|
|
|
(8)
|
|
Maintenance capital
expenditures, net to EnLink Midstream Partners, LP
|
(55)
|
|
|
(57)
|
|
|
(60)
|
|
Distributable cash
flow
|
$
|
630
|
|
|
$
|
655
|
|
|
$
|
680
|
|
|
|
(1)
|
The forecasted net
income guidance for the year ended December 31, 2018 excludes the
potential impact of gains or losses on derivative activity, gains
or losses on disposition of assets, impairment expense, gains or
losses as a result of legal settlements, gains or losses on
extinguishment of debt, and the financial effects of future
acquisitions. The exclusion of these items is due to the
uncertainty regarding the occurrence, timing and/or amount of these
events.
|
|
|
|
EnLink Midstream does
not provide a reconciliation of forward-looking Net Cash Provided
by Operating Activities to Adjusted EBITDA because the companies
are unable to predict with reasonable certainty changes in working
capital, which may impact cash provided or used during the
year. Working capital includes accounts receivable, accounts
payable and other current assets and liabilities. These items are
uncertain and depend on various factors outside the companies'
control.
|
|
|
(2)
|
Net income includes
estimated net income attributable to ENLK's non-controlling
interest in ENLC's 16.1% share of net income from EnLink Oklahoma
T.O., NGP's 49.9% share of net income from the Delaware Basin JV
and Marathon's 50% share of net income from the Ascension
JV.
|
|
|
(3)
|
Non-controlling
interest share of adjusted EBITDA includes ENLC's 16.1% share of
adjusted EBITDA from EnLink Oklahoma T.O., NGP's 49.9% share of
adjusted EBITDA from the Delaware Basin JV, Marathon Petroleum's
50% share of adjusted EBITDA from the Ascension JV and other minor
non-controlling interests.
|
EnLink Midstream,
LLC
|
Forward-Looking
Reconciliation of Net Income of ENLC to ENLC Cash Available for
Distribution (1)
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
2018
Outlook
|
|
Low
|
|
Midpoint
|
|
High
|
Net income of ENLC
(2)
|
$
|
233
|
|
|
$
|
262
|
|
|
$
|
291
|
|
Less: Net income
attributable to ENLK (3)
|
(225)
|
|
|
(250)
|
|
|
(275)
|
|
Net income of ENLC
excluding ENLK
|
$
|
8
|
|
|
$
|
12
|
|
|
$
|
16
|
|
ENLC's share of
distributions from ENLK (4)
|
201
|
|
|
201
|
|
|
201
|
|
ENLC's interest in
EnLink Oklahoma T.O. depreciation
|
19
|
|
|
19
|
|
|
19
|
|
Non-controlling
interest share of ENLK's net income (5)
|
(11)
|
|
|
(11)
|
|
|
(11)
|
|
ENLC deferred income
tax expense (6)
|
14
|
|
|
15
|
|
|
16
|
|
Maintenance capital
expenditures (7)
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
ENLC cash available
for distribution
|
$
|
230
|
|
|
$
|
235
|
|
|
$
|
240
|
|
|
|
(1)
|
The forecasted net
income guidance for the year ended December 31, 2018 excludes the
potential impact of gains or losses on derivative activity, gains
or losses on disposition of assets, impairment expense, gains or
losses as a result of legal settlements, gains or losses on
extinguishment of debt, and the financial effects of future
acquisitions. The exclusion of these items is due to the
uncertainty regarding the occurrence, timing and/or amount of these
events.
|
|
|
(2)
|
Net income of ENLC
includes estimated net income attributable to ENLC's
non-controlling interest in ENLK.
|
|
|
(3)
|
Net income
attributable to ENLK is net of the estimated non-controlling
interest share attributable to the Delaware Basin JV, Ascension JV
and EnLink Oklahoma T.O.
|
|
|
(4)
|
Represents quarterly
distributions estimated to be paid to ENLC by ENLK for
2018.
|
|
|
(5)
|
Represents estimated
net income for NGP's 49.9% share of the Delaware Basin JV, Marathon
Petroleum's 50% share of the Ascension JV and other minor
non-controlling interests.
|
|
|
(6)
|
Represents ENLC's
estimated stand-alone deferred taxes for 2018.
|
|
|
(7)
|
Represents 2018
maintenance capital expenditures attributable to ENLC's share of
EnLink Oklahoma T.O.
|
|
|
Investor Relations: Kate
Walsh, Vice President of Investor Relations, 214-721-9696,
kate.walsh@enlink.com
Media Relations: Jill
McMillan, Vice President of Public & Industry Affairs,
214-721-9271, jill.mcmillan@enlink.com
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SOURCE EnLink Midstream