Today, DCP Midstream, LP (NYSE: DCP) reported its financial results
for the quarter and year ended December 31, 2019 and announced its
2020 guidance.
HIGHLIGHTS
- Net income attributable to partners of $1 million and
$17 million for the quarter and year ended December 31,
2019, respectively.
- Distributable cash flow (DCF) of $175 million and
$762 million for the quarter and year ended December 31,
2019, resulting in a paid distribution coverage ratio of 1.13 times
and 1.23 times, respectively. Annual DCF increased approximately
11% year-over-year.
- Adjusted EBITDA of $296 million and $1,200 million
for the quarter and year ended December 31, 2019,
respectively. Annual Adjusted EBITDA increased approximately 10%
year-over-year.
- Annual Logistics and Marketing Adjusted EBITDA increased
approximately 29% year-over-year, driven by increased margin from
Sand Hills, Guadalupe, and Gulf Coast Express.
- Increased overall wellhead volumes from the fourth quarter of
2018 to the fourth quarter of 2019, including an approximate 20%
increase in DJ Basin volumes and an approximate 19% increase in
Permian Basin volumes.
- Extended Southern Hills into the DJ Basin via the White Cliffs
pipeline conversion in the fourth quarter, adding 90 MBbls/d of NGL
takeaway capacity.
- Placed the 100 MMcf/d DJ Basin O'Connor 2 bypass in service,
bringing total processing, offload, and bypass capacity in the
basin to over 1.4 Bcf/d.
- Executed a total of $54 million in asset sales in the fourth
quarter, resulting in $209 million in total 2019 asset sale
proceeds.
FOURTH QUARTER 2019 SUMMARY FINANCIAL
RESULTS
|
Three Months
Ended |
|
Year
Ended |
December
31, |
|
December
31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
(Unaudited) |
|
(Millions, except per unit amounts) |
|
|
|
|
|
|
|
|
Net income attributable to partners |
$ |
1 |
|
$ |
94 |
|
|
$ |
17 |
|
$ |
298 |
|
Net (loss) income per limited
partner unit - basic and diluted |
$ |
(0.08) |
|
$ |
0.28 |
|
|
$ |
(1.05) |
|
$ |
0.61 |
|
Adjusted EBITDA(1) |
$ |
296 |
|
$ |
245 |
|
|
$ |
1,200 |
|
$ |
1,092 |
|
Distributable cash
flow(1) |
$ |
175 |
|
$ |
138 |
|
|
$ |
762 |
|
$ |
684 |
|
(1) This press release includes the following financial measures
not presented in accordance with U.S. generally accepted accounting
principles, or GAAP: adjusted EBITDA, distributable cash flow and
adjusted segment EBITDA. Each such non-GAAP financial measure is
defined below under “Non-GAAP Financial Information”, and each is
reconciled to its most directly comparable GAAP financial measure
under “Reconciliation of Non-GAAP Financial Measures” in schedules
at the end of this press release.
CEO'S PERSPECTIVE
“2019 was a pivotal year for DCP, with more than half of our
earnings now generated by our Logistics and Marketing segment and
the elimination of our Incentive Distribution Rights," said Wouter
van Kempen, chairman, president, and CEO. “In 2020 we will complete
our final tranche of a multi-year capital growth program, which
gives us clear line of sight to a fully self-funded model in
2021."
2020
OUTLOOK |
|
|
|
|
|
($ in Millions) |
Forecast Ranges |
Net income attributable to partners |
$380 |
- |
$480 |
Forecasted adjusted
EBITDA(1) |
$1,205 |
- |
$1,345 |
Forecasted distributable cash
flow(1) |
$730 |
- |
$830 |
Sustaining capital
expenditures |
$90 |
- |
$110 |
Growth capital
expenditures |
$550 |
- |
$650 |
(1) This press release includes the following financial
measures not presented in accordance with U.S. generally accepted
accounting principles, or GAAP: adjusted EBITDA, distributable cash
flow, forecasted adjusted EBITDA and forecasted distributable cash
flow. Each such non-GAAP financial measure is defined below under
“Non-GAAP Financial Information”, and each is reconciled to its
most directly comparable GAAP financial measure under
“Reconciliation of Non-GAAP Financial Measures” in schedules at the
end of this press release.
DCP estimates the following 2020 annualized commodity
sensitivities, including the effects of hedging:
Commodity |
Price Target |
Per unit change |
After hedge impact ($ in Millions) |
NGLs ($/gal) |
$0.48 |
$0.01 |
$3 |
Natural Gas ($/MMBtu) |
$2.40 |
$0.10 |
$8 |
Crude Oil ($/Bbl) |
$60.00 |
$1.00 |
$3 |
DCP's 2020 guidance expectations include the following
assumptions:
- Expect to self-fund a portion of growth capital expenditures
with excess coverage and potential divestitures
- Equity self-funded
- Lower costs via reliability and innovation
- Higher Southern Hills volumes associated with Q4 2019 extension
and Q4 2020 expansion
- Full year earnings from Gulf Coast Express and the Q1 2019 Sand
Hills expansion
- Half year earnings from Cheyenne Connector
- Decreasing Guadalupe earnings as a result of hedges and
multi-year contracts
- Full year O'Connor 2 with mid-year strategic offload, resulting
in increased DJ Basin volumes
- Lower commodity prices
- Potential upside from increased ethane recovery
- Option to acquire Sweeny ownership at in-service date, expected
at the end of 2020
GROWTH UPDATE
Logistics Growth
- DCP exercised an increased 50% ownership option for the
Cheyenne Connector in October. The pipeline is expected to be in
service in the first half of 2020, alleviating constraints in the
DJ Basin.
- DCP added NGL takeaway from the DJ Basin with the Southern
Hills pipeline extension, via the White Cliffs conversion that went
into service in the fourth quarter of 2019. The initial capacity is
90 MBbls/d, expandable to 120 MBbls/d.
- The Southern Hills capacity expansion from ~190 to 230 MBbls/d
has been moved to backlog.
- Front Range’s expansion to a capacity of 255 MBbls/d and Texas
Express’ expansion to a capacity of over 350 MBbls will be
in-service in the first half of 2020.
G&P Growth
- The 200 MMcf/d O’Connor 2 plant was placed into service in the
third quarter of 2019, and the associated 100 MMcf/d bypass was
placed into service in the fourth quarter of 2019, increasing total
available DJ Basin capacity to over 1.4 Bcf/d.
- DCP is adding up to 225 MMcf/d of incremental DJ Basin
processing capacity by mid-2020 via a capital efficient offload
agreement.
Fractionation Growth
- DCP holds an option to acquire a 30% ownership interest in two
150 MBbls/d fractionators currently under construction within
Phillips 66's Sweeny Hub, exercisable at the in-service date, which
is expected to be in late 2020.
COMMON UNIT DISTRIBUTIONS
On January 22, 2020, DCP announced a quarterly common unit
distribution of $0.78 per limited partner unit. This
distribution remains unchanged from the previous quarter.
DCP generated distributable cash flow of $175 million and
$762 million for the quarter and year ended December 31, 2019,
respectively. Distributions declared were $162 million for the
fourth quarter of 2019 and $626 million for the year ended
December 31, 2019, resulting in declared distribution coverage
ratios of 1.08 times and 1.22 times for the quarter and year ended
December 31, 2019, respectively.
FOURTH QUARTER 2019 OPERATING RESULTS BY BUSINESS
SEGMENT
Logistics and Marketing
Logistics and Marketing Segment net income attributable to
partners for the three months ended December 31, 2019 and 2018 was
$149 million and $152 million, respectively.
Adjusted segment EBITDA increased to $178 million for the three
months ended December 31, 2019, from $148 million for the three
months ended December 31, 2018, reflecting higher equity earnings
and distributions driven by increased volumes on Sand Hills, new
Gulf Coast Express volumes and favorable NGL marketing margins,
partially offset by decreased Southern Hills volumes, lower
earnings from Guadalupe and the sale of our wholesale propane
business.
Gathering and Processing
Gathering and Processing Segment net income attributable to
partners for the three months ended December 31, 2019 and 2018 was
$12 million and $89 million, respectively.
Adjusted segment EBITDA increased to $190 million for the three
months ended December 31, 2019, from $170 million for the three
months ended December 31, 2018, reflecting lower operating costs,
higher realized cash settlement gains related to DCP's commodity
derivative program, increased volumes in the Permian, and DJ Basin
growth, partially offset by sustained lower commodity prices and
volume declines in the Midcontinent region.
CAPITALIZATION, LIQUIDITY, AND FINANCING
Debt and Credit Facilities
DCP has two credit facilities with up to $1.75 billion of total
capacity. Proceeds from these facilities can be used for
working capital requirements and other general partnership purposes
including growth and acquisitions.
- DCP has a $1.4 billion senior unsecured revolving credit
agreement that matures on December 9, 2024, or the Credit
Agreement. As of December 31, 2019, total available capacity
under the Credit Agreement was $1,185 million net of $200 million
of outstanding borrowings and $15 million of letters of
credit.
- DCP has an accounts receivable securitization facility that
provides up to $350 million of borrowing capacity at LIBOR market
index rates plus a margin through August 12, 2022. As of
December 31, 2019, DCP had $350 million of outstanding
borrowings under the accounts receivable securitization
facility.
As of December 31, 2019, DCP had $5,925 million of total
consolidated principal debt outstanding, including
$600 million of current maturities. The total debt outstanding
includes $550 million of junior subordinated notes which are
excluded from debt pursuant to DCP's Credit Agreement leverage
ratio calculation. For the year ended December 31, 2019, DCP's
leverage ratio was 3.96 times. The effective interest rate on DCP's
overall debt position, as of December 31, 2019, was 5.26%.
CAPITAL EXPENDITURES AND INVESTMENTS
During the quarter and year ended December 31, 2019, DCP
had expansion capital expenditures and equity investments totaling
$203 million and $887 million, and sustaining capital
expenditures totaling $27 million and $83 million,
respectively.
EARNINGS CALL
DCP will host a conference call webcast tomorrow, February 12,
2020 , at 11:00 a.m. ET, to discuss its fourth quarter and full
year 2019 earnings and its 2020 guidance. The live audio webcast of
the conference call and presentation slides can be accessed through
the Investors section on the DCP website at www.dcpmidstream.com
and the conference call can be accessed by dialing (844) 233-0113
in the United States or (574) 990-1008 outside the United States.
The conference confirmation number is 7552188. An audio webcast
replay, presentation slides and transcript will also be available
by accessing the Investors section on the DCP website.
NON-GAAP FINANCIAL INFORMATION
This press release and the accompanying financial schedules
include the following non-GAAP financial measures: adjusted EBITDA,
distributable cash flow and adjusted segment EBITDA. The
accompanying schedules provide reconciliations of these non-GAAP
financial measures to their most directly comparable GAAP financial
measures. DCP's non-GAAP financial measures should not be
considered in isolation or as an alternative to its financial
measures presented in accordance with GAAP, including operating
revenues, net income or loss attributable to partners, net cash
provided by or used in operating activities or any other measure of
liquidity or financial performance presented in accordance with
GAAP as a measure of operating performance, liquidity or ability to
service debt obligations and make cash distributions to
unitholders. The non-GAAP financial measures presented by DCP may
not be comparable to similarly titled measures of other companies
because they may not calculate their measures in the same
manner.
DCP defines adjusted EBITDA as net income or loss attributable
to partners adjusted for (i) distributions from unconsolidated
affiliates, net of earnings, (ii) depreciation and amortization
expense, (iii) net interest expense, (iv) noncontrolling interest
in depreciation and income tax expense, (v) unrealized gains and
losses from commodity derivatives, (vi) income tax expense or
benefit, (vii) impairment expense and (viii) certain other non-cash
items. Adjusted EBITDA further excludes items of income or loss
that we characterize as unrepresentative of our ongoing operations.
Management believes these measures provide investors meaningful
insight into results from ongoing operations.
The commodity derivative non-cash losses and gains result from
the marking to market of certain financial derivatives used by us
for risk management purposes that we do not account for under the
hedge method of accounting. These non-cash losses or gains may or
may not be realized in future periods when the derivative contracts
are settled, due to fluctuating commodity prices.
Adjusted EBITDA is used as a supplemental liquidity and
performance measure and adjusted segment EBITDA is used as a
supplemental performance measure by DCP's management and by
external users of its financial statements, such as investors,
commercial banks, research analysts and others to assess:
- financial performance of DCP's assets without regard to
financing methods, capital structure or historical cost basis;
- DCP's operating performance and return on capital as compared
to those of other companies in the midstream energy industry,
without regard to financing methods or capital structure;
- viability and performance of acquisitions and capital
expenditure projects and the overall rates of return on investment
opportunities;
- performance of DCP's business excluding non-cash commodity
derivative gains or losses; and
- in the case of Adjusted EBITDA, the ability of DCP's assets to
generate cash sufficient to pay interest costs, support its
indebtedness, make cash distributions to its unitholders and pay
sustaining capital expenditures.
DCP defines adjusted segment EBITDA for each segment as segment
net income or loss attributable to partners adjusted for (i)
distributions from unconsolidated affiliates, net of earnings, (ii)
depreciation and amortization expense, (iii) net interest expense,
(iv) noncontrolling interest in depreciation and income tax
expense, (v) unrealized gains and losses from commodity
derivatives, (vi) income tax expense or benefit, (vii) impairment
expense and (viii) certain other non-cash items. Adjusted segment
EBITDA further excludes items of income or loss that we
characterize as unrepresentative of our ongoing operations for that
segment for that segment.
DCP defines distributable cash flow as adjusted EBITDA less
sustaining capital expenditures, net of reimbursable projects,
interest expense, cumulative cash distributions earned by the
Series A, Series B and Series C Preferred Units (collectively the
"Preferred Limited Partnership Units") and certain other items.
Sustaining capital expenditures are cash expenditures made to
maintain DCP's cash flows, operating capacity or earnings capacity.
These expenditures add on to or improve capital assets owned,
including certain system integrity, compliance and safety
improvements. Sustaining capital expenditures also include certain
well connects, and may include the acquisition or construction of
new capital assets. Income attributable to preferred units
represent cash distributions earned by the Preferred Limited
Partnership Units. Cash distributions to be paid to the
holders of the Preferred Limited Partnership Units, assuming a
distribution is declared by DCP's board of directors, are not
available to common unit holders. Non-cash mark-to-market of
derivative instruments is considered to be non-cash for the purpose
of computing distributable cash flow because settlement will not
occur until future periods, and will be impacted by future changes
in commodity prices and interest rates. DCP compares the
distributable cash flow it generates to the cash distributions it
expects to pay to its partners. Using this metric, DCP computes its
distribution coverage ratio. Distributable cash flow is used as a
supplemental liquidity and performance measure by DCP's management
and by external users of its financial statements, such as
investors, commercial banks, research analysts and others, to
assess DCP's ability to make cash distributions to its
unitholders.
ABOUT DCP MIDSTREAM, LP
DCP Midstream, LP (NYSE: DCP) is a Fortune 500 midstream master
limited partnership headquartered in Denver, Colorado, with a
diversified portfolio of gathering, processing, logistics and
marketing assets. DCP is one of the largest natural gas liquids
producers and marketers, and one of the largest natural gas
processors in the U.S. The owner of DCP’s general partner is a
joint venture between Enbridge and Phillips 66. For more
information, visit the DCP Midstream, LP website at
www.dcpmidstream.com.
CAUTIONARY STATEMENTSThis press release may
contain or incorporate by reference forward-looking statements as
defined under the federal securities laws regarding DCP Midstream,
LP, including projections, estimates, forecasts, plans and
objectives. Although management believes that expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to be
correct. In addition, these statements are subject to certain
risks, uncertainties and other assumptions that are difficult to
predict and may be beyond DCP's control. If any of these risks or
uncertainties materialize, or if underlying assumptions prove
incorrect, DCP's actual results may vary materially from what
management forecasted, anticipated, estimated, projected or
expected.
The key risk factors that may have a direct bearing on DCP's
results of operations and financial condition are described in
detail in the "Risk Factors" section of DCP's most recently filed
annual report and subsequently filed quarterly reports with the
Securities and Exchange Commission. Investors are encouraged to
closely consider the disclosures and risk factors contained in
DCP's annual and quarterly reports filed from time to time with the
Securities and Exchange Commission. The forward looking statements
contained herein speak as of the date of this announcement. DCP
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
securities laws. Information contained in this press release is
unaudited and subject to change.
Investors or Analysts:
Sarah Sandberg
scsandberg@dcpmidstream.com
303-605-1626
DCP MIDSTREAM,
LPFINANCIAL RESULTS ANDSUMMARY
FINANCIAL DATA(Unaudited)
|
Three Months
Ended |
|
Year
Ended |
|
December
31, |
|
December
31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
(Millions, except per unit amounts) |
Sales of
natural gas, NGLs and condensate |
$ |
1,830 |
|
|
|
$ |
2,366 |
|
|
|
$ |
7,199 |
|
|
|
$ |
9,374 |
|
|
Transportation, processing and other |
113 |
|
|
|
118 |
|
|
|
439 |
|
|
|
489 |
|
|
Trading and marketing (losses) gains, net |
(14 |
) |
|
|
123 |
|
|
|
(13 |
) |
|
|
(41 |
) |
|
Total operating revenues |
1,929 |
|
|
|
2,607 |
|
|
|
7,625 |
|
|
|
9,822 |
|
|
Purchases and related costs |
(1,554 |
) |
|
|
(1,995 |
) |
|
|
(6,022 |
) |
|
|
(8,019 |
) |
|
Operating and maintenance expense |
(181 |
) |
|
|
(217 |
) |
|
|
(728 |
) |
|
|
(760 |
) |
|
Depreciation and amortization expense |
(100 |
) |
|
|
(99 |
) |
|
|
(404 |
) |
|
|
(388 |
) |
|
General and administrative expense |
(74 |
) |
|
|
(77 |
) |
|
|
(275 |
) |
|
|
(276 |
) |
|
Asset impairments |
— |
|
|
|
(145 |
) |
|
|
(247 |
) |
|
|
(145 |
) |
|
Loss on sale of assets |
(66 |
) |
|
|
— |
|
|
|
(80 |
) |
|
|
— |
|
|
Restructuring costs |
— |
|
|
|
— |
|
|
|
(11 |
) |
|
|
— |
|
|
Other expense, net |
(2 |
) |
|
|
(4 |
) |
|
|
(8 |
) |
|
|
(11 |
) |
|
Total operating costs and expenses |
(1,977 |
) |
|
|
(2,537 |
) |
|
|
(7,775 |
) |
|
|
(9,599 |
) |
|
Operating (loss) income |
(48 |
) |
|
|
70 |
|
|
|
(150 |
) |
|
|
223 |
|
|
Loss from financing activities |
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19 |
) |
|
Interest expense, net |
(83 |
) |
|
|
(66 |
) |
|
|
(304 |
) |
|
|
(269 |
) |
|
Earnings from unconsolidated affiliates |
130 |
|
|
|
92 |
|
|
|
474 |
|
|
|
370 |
|
|
Income tax benefit (expense) |
3 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
(3 |
) |
|
Net income attributable to noncontrolling interests |
(1 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
|
Net income attributable to partners |
1 |
|
|
|
94 |
|
|
|
17 |
|
|
|
298 |
|
|
Series A preferred partner's interest in net income |
(9 |
) |
|
|
(9 |
) |
|
|
(37 |
) |
|
|
(37 |
) |
|
Series B preferred partner's interest in net income |
(4 |
) |
|
|
(3 |
) |
|
|
(13 |
) |
|
|
(8 |
) |
|
Series C preferred partner's interest in net income |
(2 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(2 |
) |
|
General partner's interest in net income |
— |
|
|
|
(41 |
) |
|
|
(118 |
) |
|
|
(164 |
) |
|
Net (loss) income allocable to limited partners |
$ |
(14 |
) |
|
|
$ |
39 |
|
|
|
$ |
(160 |
) |
|
|
$ |
87 |
|
|
|
|
|
|
|
|
|
|
Net (loss) income per limited partner unit — basic and
diluted |
$ |
(0.08 |
) |
|
|
$ |
0.28 |
|
|
|
$ |
(1.05 |
) |
|
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
|
Weighted-average limited
partner units outstanding — basic and diluted |
182.2 |
|
|
|
143.3 |
|
|
|
153.1 |
|
|
|
143.3 |
|
|
|
|
|
|
|
December
31, |
|
December
31, |
|
2019 |
|
2018 |
|
(Millions) |
Cash and cash
equivalents |
$ |
1 |
|
|
$ |
1 |
|
Other current assets |
1,079 |
|
|
1,270 |
|
Property, plant and equipment, net |
8,811 |
|
|
9,135 |
|
Other long-term assets |
4,236 |
|
|
3,860 |
|
Total assets |
$ |
14,127 |
|
|
$ |
14,266 |
|
|
|
|
|
Current liabilities |
$ |
1,190 |
|
|
$ |
1,379 |
|
Current debt |
603 |
|
|
525 |
|
Long-term debt |
5,321 |
|
|
4,782 |
|
Other long-term liabilities |
380 |
|
|
283 |
|
Partners' equity |
6,605 |
|
|
7,268 |
|
Noncontrolling interests |
28 |
|
|
29 |
|
Total liabilities and equity |
$ |
14,127 |
|
|
$ |
14,266 |
|
|
|
|
|
|
|
|
|
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
Three Months
Ended |
|
Year
Ended |
|
December
31, |
|
December
31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
(Millions) |
Reconciliation of Non-GAAP Financial
Measures: |
|
|
|
|
|
|
|
Net income
attributable to partners |
$ |
1 |
|
|
|
$ |
94 |
|
|
|
$ |
17 |
|
|
|
$ |
298 |
|
|
Interest expense, net |
83 |
|
|
|
66 |
|
|
|
304 |
|
|
|
269 |
|
|
Depreciation, amortization and income tax benefit (expense), net of
noncontrolling interests |
97 |
|
|
|
100 |
|
|
|
402 |
|
|
|
390 |
|
|
Distributions from unconsolidated affiliates, net of earnings |
12 |
|
|
|
24 |
|
|
|
66 |
|
|
|
71 |
|
|
Asset impairments |
— |
|
|
|
145 |
|
|
|
247 |
|
|
|
145 |
|
|
Loss from financing activities |
— |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
|
Other non-cash charges |
— |
|
|
|
3 |
|
|
|
6 |
|
|
|
8 |
|
|
Loss on sale of assets |
66 |
|
|
|
— |
|
|
|
80 |
|
|
|
— |
|
|
Non-cash commodity derivative mark-to-market |
37 |
|
|
|
(187 |
) |
|
|
78 |
|
|
|
(108 |
) |
|
Adjusted EBITDA |
296 |
|
|
|
245 |
|
|
|
1,200 |
|
|
|
1,092 |
|
|
Interest expense, net |
(83 |
) |
|
|
(66 |
) |
|
|
(304 |
) |
|
|
(269 |
) |
|
Sustaining capital expenditures, net of noncontrolling interest
portion and reimbursable projects |
(27 |
) |
|
|
(30 |
) |
|
|
(83 |
) |
|
|
(99 |
) |
|
Preferred unit distributions *** |
(15 |
) |
|
|
(14 |
) |
|
|
(59 |
) |
|
|
(47 |
) |
|
Other, net |
4 |
|
|
|
3 |
|
|
|
8 |
|
|
|
7 |
|
|
Distributable cash flow |
$ |
175 |
|
|
|
$ |
138 |
|
|
|
$ |
762 |
|
|
|
$ |
684 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
222 |
|
|
|
$ |
121 |
|
|
|
$ |
859 |
|
|
|
$ |
662 |
|
|
Interest expense, net |
83 |
|
|
|
66 |
|
|
|
304 |
|
|
|
269 |
|
|
Net changes in operating assets and liabilities |
(30 |
) |
|
|
244 |
|
|
|
(20 |
) |
|
|
278 |
|
|
Non-cash commodity derivative mark-to-market |
37 |
|
|
|
(187 |
) |
|
|
78 |
|
|
|
(108 |
) |
|
Other, net |
(16 |
) |
|
|
1 |
|
|
|
(21 |
) |
|
|
(9 |
) |
|
Adjusted EBITDA |
296 |
|
|
|
245 |
|
|
|
1,200 |
|
|
|
1,092 |
|
|
Interest expense, net |
(83 |
) |
|
|
(66 |
) |
|
|
(304 |
) |
|
|
(269 |
) |
|
Sustaining capital expenditures, net of noncontrolling interest
portion and reimbursable projects |
(27 |
) |
|
|
(30 |
) |
|
|
(83 |
) |
|
|
(99 |
) |
|
Preferred unit distributions *** |
(15 |
) |
|
|
(14 |
) |
|
|
(59 |
) |
|
|
(47 |
) |
|
Other, net |
4 |
|
|
|
3 |
|
|
|
8 |
|
|
|
7 |
|
|
Distributable cash flow |
$ |
175 |
|
|
|
$ |
138 |
|
|
|
$ |
762 |
|
|
|
$ |
684 |
|
|
*** Represents cumulative cash distributions earned by the
Series A, B and C Preferred Units, assuming distributions are
declared by DCP's board of directors.
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURESSEGMENT FINANCIAL RESULTS AND OPERATING
DATA (Unaudited)
|
Three Months
Ended |
|
Year
Ended |
|
December
31, |
|
December
31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
(Millions, except as indicated) |
Logistics and Marketing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net
income attributable to partners |
$ |
149 |
|
|
|
$ |
152 |
|
|
|
$ |
605 |
|
|
$ |
509 |
|
|
Non-cash commodity derivative mark-to-market |
14 |
|
|
|
(26 |
) |
|
|
29 |
|
|
4 |
|
|
Depreciation and amortization expense |
9 |
|
|
|
4 |
|
|
|
19 |
|
|
15 |
|
|
Distributions from unconsolidated affiliates, net of earnings |
7 |
|
|
|
18 |
|
|
|
44 |
|
|
49 |
|
|
Asset impairments |
— |
|
|
|
— |
|
|
|
35 |
|
|
— |
|
|
Loss on sale of assets |
— |
|
|
|
— |
|
|
|
10 |
|
|
— |
|
|
Other charges |
(1 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
Adjusted segment EBITDA |
$ |
178 |
|
|
|
$ |
148 |
|
|
|
$ |
742 |
|
|
$ |
577 |
|
|
|
|
|
|
|
|
|
|
Operating and financial data: |
|
|
|
|
|
|
|
NGL pipelines throughput (MBbls/d) |
599 |
|
|
|
601 |
|
|
|
626 |
|
|
582 |
|
|
NGL fractionator throughput (MBbls/d) |
58 |
|
|
|
55 |
|
|
|
60 |
|
|
58 |
|
|
Operating and maintenance expense |
$ |
13 |
|
|
|
$ |
11 |
|
|
|
$ |
42 |
|
|
$ |
47 |
|
|
|
|
|
|
|
|
|
|
Gathering and Processing Segment: |
|
|
|
|
|
|
|
Financial results: |
|
|
|
|
|
|
|
Segment net income attributable to partners |
$ |
12 |
|
|
|
$ |
89 |
|
|
|
$ |
22 |
|
|
$ |
374 |
|
|
Non-cash commodity derivative mark-to-market |
23 |
|
|
|
(161 |
) |
|
|
49 |
|
|
(112 |
) |
|
Depreciation and amortization expense, net of noncontrolling
interest |
83 |
|
|
|
88 |
|
|
|
354 |
|
|
345 |
|
|
Asset impairments |
— |
|
|
|
145 |
|
|
|
212 |
|
|
145 |
|
|
Loss on sale of assets |
66 |
|
|
|
— |
|
|
|
70 |
|
|
— |
|
|
Distributions from unconsolidated affiliates, net of earnings |
5 |
|
|
|
6 |
|
|
|
22 |
|
|
22 |
|
|
Other charges |
1 |
|
|
|
3 |
|
|
|
6 |
|
|
7 |
|
|
Adjusted segment EBITDA |
$ |
190 |
|
|
|
$ |
170 |
|
|
|
$ |
735 |
|
|
$ |
781 |
|
|
|
|
|
|
|
|
|
|
Operating and financial data: |
|
|
|
|
|
|
|
Natural gas wellhead (MMcf/d) |
4,998 |
|
|
|
4,930 |
|
|
|
4,941 |
|
|
4,769 |
|
|
NGL gross production (MBbls/d) |
404 |
|
|
|
403 |
|
|
|
417 |
|
|
413 |
|
|
Operating and maintenance expense |
$ |
162 |
|
|
|
$ |
200 |
|
|
|
$ |
664 |
|
|
$ |
692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
Three Months
Ended |
Year
Ended |
December
31, |
December
31, |
|
2019 |
|
2019 |
|
(Millions, except as indicated) |
Reconciliation of Non-GAAP Financial
Measures: |
|
|
|
|
|
Distributable cash flow |
$ |
175 |
|
|
$ |
762 |
|
Distributions declared |
$ |
162 |
|
|
$ |
626 |
|
Distribution coverage ratio -
declared |
1.08 |
x |
|
1.22 |
x |
|
|
|
|
|
|
Distributable cash flow |
$ |
175 |
|
|
$ |
762 |
|
Distributions paid |
$ |
155 |
|
|
$ |
618 |
|
Distribution coverage ratio -
paid |
1.13 |
x |
|
1.23 |
x |
|
Quarter
Ended March 31,
2019 |
|
Quarter
Ended June 30,
2019 |
|
Quarter
Ended September 30,
2019 |
|
Quarter
Ended December 31,
2019 |
|
Twelve
MonthsEnded December 31,
2019 |
|
(Millions, except as indicated) |
|
|
|
|
|
|
|
|
|
|
Distributable cash flow |
$ |
224 |
|
|
$ |
173 |
|
|
$ |
190 |
|
|
$ |
175 |
|
|
$ |
762 |
|
Distributions declared |
$ |
155 |
|
|
$ |
154 |
|
|
$ |
155 |
|
|
$ |
162 |
|
|
$ |
626 |
|
Distribution coverage ratio -
declared |
|
1.45 |
x |
|
|
1.12 |
x |
|
|
1.23 |
x |
|
|
1.08 |
x |
|
|
1.22 |
x |
|
|
|
|
|
|
|
|
|
|
Distributable cash flow |
$ |
224 |
|
|
$ |
173 |
|
|
$ |
190 |
|
|
$ |
175 |
|
|
$ |
762 |
|
Distributions paid |
$ |
154 |
|
|
$ |
155 |
|
|
$ |
154 |
|
|
$ |
155 |
|
|
$ |
618 |
|
Distribution coverage ratio -
paid |
|
1.45 |
x |
|
|
1.12 |
x |
|
|
1.23 |
x |
|
|
1.13 |
x |
|
|
1.23 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DCP MIDSTREAM,
LPRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited)
|
|
|
Twelve Months Ended |
|
|
|
December 31, 2020 |
|
|
|
Low |
|
High |
|
|
|
Forecast |
|
Forecast |
|
|
|
(millions) |
Reconciliation of Non-GAAP Measures: |
|
|
|
Forecasted net income attributable to partners |
$ |
380 |
|
|
|
$ |
480 |
|
|
|
|
Distributions from
unconsolidated affiliates, net of earnings |
65 |
|
|
|
85 |
|
|
|
|
Interest expense, net of
interest income |
320 |
|
|
|
340 |
|
|
|
|
Income taxes |
5 |
|
|
|
5 |
|
|
|
|
Depreciation and amortization,
net of noncontrolling interests |
420 |
|
|
|
440 |
|
|
|
|
Non-cash commodity derivative
mark-to-market |
15 |
|
|
|
(5 |
) |
|
Forecasted
adjusted EBITDA |
1,205 |
|
|
|
1,345 |
|
|
|
|
Interest expense, net of
interest income |
(320 |
) |
|
|
(340 |
) |
|
|
|
Sustaining capital
expenditures, net of reimbursable projects |
(90 |
) |
|
|
(110 |
) |
|
|
|
Preferred unit distributions
*** |
(60 |
) |
|
|
(60 |
) |
|
|
|
Other, net |
(5 |
) |
|
|
(5 |
) |
|
Forecasted
distributable cash flow |
$ |
730 |
|
|
|
$ |
830 |
|
|
|
|
|
|
|
|
|
|
|
|
DCP Midstream (NYSE:DCP)
Historical Stock Chart
From Mar 2024 to Apr 2024
DCP Midstream (NYSE:DCP)
Historical Stock Chart
From Apr 2023 to Apr 2024