DALLAS, July 31, 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), reported financial
results for the second quarter of 2018 and increased certain
full-year 2018 guidance measures.
Highlights
- ENLK reported net income attributable to ENLK after
non-controlling interest of approximately $99 million for the second quarter of 2018,
compared to approximately $30 million
for the second quarter of 2017, representing approximately 230
percent growth.
- ENLK achieved approximately $257
million of adjusted EBITDA net to ENLK for the second
quarter of 2018, compared to approximately $210 million for the second quarter of 2017,
representing approximately 23 percent growth. Adjusted EBITDA
is a non-GAAP measure and is explained in greater detail under
"Non-GAAP Financial Information."
- ENLC reported net income attributable to ENLC after
non-controlling interest of approximately $28 million for the second quarter of 2018,
compared to approximately $6 million
for the second quarter of 2017, representing approximately 367
percent growth.
- ENLC achieved approximately $58
million of cash available for distribution for the second
quarter of 2018, compared to approximately $53 million for the second quarter of 2017,
representing approximately 10 percent growth. Cash available
for distribution is a non-GAAP measure and is explained in greater
detail under "Non-GAAP Financial Information."
- EnLink's strong financial and operational results for the first
half of 2018 were primarily driven by continued growth across
EnLink's Central Oklahoma
footprint. Average gas gathering and transportation volumes
in Oklahoma increased by
approximately 18 percent from the first quarter of 2018 and 61
percent from the second quarter of 2017. Average processing
volumes increased approximately 12 percent from the first quarter
of 2018 and 64 percent from the second quarter of 2017.
- ENLK raised its full-year 2018 net income and adjusted EBITDA
guidance. The increased net income guidance range for 2018 is
$329 million to $369 million, representing an approximate 22
percent increase to the previous guidance mid-point. The
increased adjusted EBITDA guidance range for 2018 is now
$1.0 billion to $1.05 billion, representing an approximate 4
percent increase to the previous guidance mid-point. ENLK
continues to expect 2019 adjusted EBITDA growth between five
percent to 10 percent above the increased 2018 mid-point.
- ENLK raised its full-year 2018 distributable cash flow guidance
range to $680 million to $710 million, representing an approximate 6
percent increase to the previous guidance mid-point. Distributable
cash flow is a non-GAAP measure and is explained in greater detail
under "Non-GAAP Financial Information."
- ENLK raised its full-year 2018 growth capital expenditures, to
a mid-point of $720 million, which is
up from the previous mid-point of approximately $650 million. The expected increase in
growth capital expenditures is largely related to the construction
of crude oil gathering systems in the Permian Basin and
Central Oklahoma, and the
acceleration of well connections across Central
Oklahoma.
- In July 2018, affiliates of
Global Infrastructure Partners (GIP), a leading global independent
infrastructure fund manager, completed the previously announced
acquisition of all of Devon's equity interests in EnLink for total
cash consideration of $3.125
billion.
"EnLink has performed tremendously well during the first half of
2018, with our results being driven by strong execution and
continued focus on our seven growth strategies." said Michael J. Garberding, EnLink President and
Chief Executive Officer. "We are pleased to be in the position to
increase guidance, and attribute our solid performance to being in
the right places with the right partners. We continue to
strengthen our balance sheet and remain committed to running our
business with investment grade style credit metrics. We recently
announced the addition of a new strategic partner, Global
Infrastructure Partners, and are excited to team with GIP to
further enhance our go-forward plans and build on our strength and
momentum."
EnLink Midstream Partners, LP: Second Quarter 2018
Financial Results
- The Partnership reported net income attributable to ENLK of
$98.9 million for the second quarter
of 2018, compared to net income of $29.6
million for the second quarter of 2017.
- The Partnership achieved $257.2
million of adjusted EBITDA net to ENLK for the second
quarter of 2018, compared to $209.7
million for the second quarter of 2017.
- The Partnership reported net cash provided by operating
activities of $238.0 million for the
second quarter of 2018, compared to $158.0
million for the second quarter of 2017.
- Distributable cash flow attributable to ENLK's common units was
$178.8 million for the second quarter
of 2018, compared to $154.3 million
for the second quarter of 2017.
- ENLK raised its full-year 2018 guidance, with net income
expected in the range of $329 million
to $369 million and adjusted EBITDA
expected in the range of $1.00
billion to $1.05 billion.
Accordingly, ENLK updated its 2019 adjusted EBITDA expectations
of five percent to 10 percent growth over the increased 2018
guidance mid-point. ENLK raised its 2018 distributable cash flow
guidance range to $680 million to
$710 million. The change in
distributable cash flow guidance range represents an approximate 6
percent increase from the prior mid-point to the new
mid-point.
- ENLK's distribution coverage was 1.17x for the second quarter
of 2018, compared to 1.02x for the second quarter of 2017.
ENLK's new distribution coverage range for 2018 is 1.10x to 1.15x
for 2018, which is up from the 1.00x to 1.10x previously disclosed
guidance range.
- Debt to adjusted EBITDA as of June 30,
2018 was 3.82x, compared to 3.99x as of June 30, 2017 (as calculated by ENLK's bank
facility covenants). Debt to adjusted EBITDA for 2018 is
expected to be in the range of 3.85x to 4.00x, refined from the
previously disclosed guidance range of 3.70x to 4.20x.
- Growth capital expenditures net to ENLK for the second quarter
of 2018 totaled approximately $170
million, which combined with the first quarter of 2018
expenditures of approximately $138
million, results in year-to-date growth capital expenditures
of approximately $308 million. EnLink
raised its total funded growth capital expenditures to account for
increased activity across EnLink's footprint, including the
continued build-out of crude gathering platforms in the Permian
Basin and Central Oklahoma. The updated range for ENLK is
$685 million to $755 million, up from a previously disclosed
range of $580 million to $710 million. The increase in growth
capital expenditures is expected to be funded by excess cash flow
generated by the business and borrowings on ENLK's credit
facility.
- As of July 26, 2018, ENLK had 350,346,037 common units
outstanding.
EnLink Midstream, LLC: Second Quarter 2018
Financial Results
- The General Partner reported net income attributable to ENLC of
$28.0 million for the second quarter
of 2018, compared to net income of $5.9
million for the second quarter of 2017.
- ENLC's cash available for distribution totaled $57.9 million for the second quarter of 2018,
compared to $52.6 million for the
second quarter of 2017. Cash available for distribution for
the second quarter of 2018 included $10.3
million related to ENLC's approximately 16 percent interest
in EnLink Oklahoma Gas Processing LP (together with its
subsidiaries, "EOGP").
- ENLC increased its full-year 2018 net income guidance, with net
income expected in the range of $285
million to $343 million.
ENLC reaffirmed its cash available for distribution guidance range
of $230 million to $240 million.
- Growth capital expenditures net to ENLC for the second quarter
of 2018 totaled approximately $21
million, which combined with the first quarter of 2018
growth capital expenditures of approximately $12 million, results in a year-to-date total of
approximately $33 million.
Full-year 2018 growth capital expenditure net to ENLC has changed
to a range of $40 million to
$70 million, as compared to the
previously disclosed range of $50
million to $60 million.
- ENLC's distribution coverage was 1.18x for the second quarter
of 2018, compared to 1.13x for the second quarter of 2017.
ENLC's distribution coverage for 2018 is expected to remain
in-line with the previously disclosed guidance range of 1.16x to
1.22x.
- As of July 26, 2018, ENLC had 181,132,896 common units
outstanding.
Regional Updates:
Central Oklahoma:
- EnLink's Oklahoma segment
reported strong segment profit growth during the second quarter of
2018, with segment profit of $151.7
million, up from $95.4 million
reported in the first quarter of 2018 and $68.8 million in the second quarter of 2017.
Segment profit for the second quarter of 2018 included $45.5 million related to a one-time revenue
amount which was recorded as a result of a contract
restructuring. This one-time amount does not impact adjusted
EBITDA for the second quarter of 2018. Omitting this one-time
amount from Oklahoma segment
profit for the second quarter of 2018 results in an approximate 11
percent increase over Oklahoma
segment profit for the first quarter of 2018 and an approximate 54
percent increase from Oklahoma
segment profit for the second quarter of 2017. The pace of growth
in the Oklahoma segment anchors
management's confidence in the strength of the STACK play and the
ability to achieve recently raised 2018 full-year guidance.
- EnLink's Oklahoma segment
experienced solid volume growth during the second quarter of 2018,
including average gas gathering and transportation volume increases
of 18 percent and average processing volume increases of 12
percent, in each case, as compared to the first quarter of
2018. Average gas gathering and transportation volumes
increased 61 percent and average processing volumes increased
approximately 64 percent, in each case, from the second quarter of
2017. Volume growth in Central
Oklahoma is expected to remain robust as the diverse group
of producer customers on EnLink's dedicated acreage continues to
deliver strong well results and continues the transition to
full-field development.
- Construction of EnLink's previously announced Thunderbird
processing plant is progressing well and remains on track to be
operational during the first quarter of 2019. Once
operational, Thunderbird will increase EnLink's gas processing
capacity in Central Oklahoma by
200 million cubic feet per day (MMcf/d), bringing total gas
processing capacity to over 1.2 billion cubic feet per day
(Bcf/d). EnLink's ongoing development in the active
Central Oklahoma region reinforces
its position as one of the largest and most cost-efficient
providers of natural gas processing in the STACK.
- EnLink made significant progress in advancing its crude
gathering strategy in Oklahoma
during the second quarter of 2018. The Black Coyote crude
gathering system, backed by an acreage dedication from Devon, was
placed in service in April 2018. EnLink expects significant
volume growth on the system during the second half of 2018, driven
by connections of several upcoming multi-well drilling
projects. In addition, construction continued on the Redbud
crude gathering system, underwritten by an acreage dedication from
Marathon Oil Company. The first phase of the Redbud system is
expected to be operational during the third quarter of 2018.
Midland Basin:
- EnLink's Midland Basin natural gas volume activity experienced
solid growth during the second quarter of 2018, with average
gathering and transportation volumes up 14 percent, and average
volumes for processing activity up 12 percent over the first
quarter of 2018. Average gathering and transportation volumes have
increased by approximately 27 percent, and average processing
volumes are up 22 percent from the second quarter of 2017.
This growth trend is expected to continue throughout the remainder
of 2018 and into 2019. EnLink's Midland Basin processing
capacity was approximately 65 percent utilized during the second
quarter of 2018, and utilization rate in the fourth quarter of 2018
is projected to be approximately 80 percent.
- EnLink's crude oil gathering operations in the Midland Basin
experienced solid momentum during the quarter, achieving average
volumes of approximately 40,000 barrels per day, which represents
nearly 40 percent growth as compared to the second quarter of
2017.
Delaware Basin:
- Gas volumes across EnLink's Delaware Basin Joint Venture (JV) experienced
solid growth during the second quarter of 2018, with average
gathering and transportation volumes up approximately 33 percent,
and average processing volumes up approximately 37 percent, as
compared to the first quarter of 2018. Average gathering and
transportation volumes have increased by approximately 118 percent,
and average processing volumes have increased by approximately 132
percent, as compared to the second quarter of 2017. Rig activity
remains strong on the JV's footprint, and volume growth momentum is
expected to continue throughout the second half of 2018 and into
2019.
- The JV previously announced the construction of Lobo III, a new
200 MMcf/d expansion of gas processing capacity at the existing
Lobo complex. Construction of Lobo III is progressing, and the
first 100 MMcf/d expansion is expected to be operational during the
fourth quarter of 2018. The second 100 MMcf/d expansion
is expected to be operational during the first quarter of
2019.
- EnLink also previously announced the construction of a new
crude oil gathering system, Avenger. Avenger is expected to
significantly expand EnLink's service offerings in the Delaware Basin, and is backed by a 10-year
contract with Devon. EnLink expects to invest approximately
$35 million to $40 million of growth capital expenditures during
2018, with initial volumes already flowing. Avenger is expected to
be placed into full-service during the first quarter of 2019, and
is expected to generate a project-based return of five to six
times.
Louisiana:
- EnLink's natural gas liquids (NGL) network continues to benefit
from growth in liquids output from EnLink's Chisholm processing
complex in the STACK. NGLs produced from EnLink's Chisholm
complex are preferentially shipped to EnLink's Gulf
Coast operations for further transportation, fractionation and
downstream value creation. Sequential average NGL volumes on
EnLink's system increased slightly during the second quarter of
2018, continuing the momentum from a strong first quarter of 2018.
For the remainder of 2018, average NGL volumes fractionated by
EnLink are expected to remain at levels similar to those
experienced in the second quarter of 2018. Segment profit
contribution from EnLink's NGL operations for the second quarter of
2018 declined 23 percent as compared to the first quarter of 2018,
in-line with expectations of normal seasonal patterns associated
with this area of the business.
- EnLink continued to experience strong volumes on
its Louisiana gas system during the second quarter of
2018, driven by strong industrial and LNG demand across its Gulf
Coast network. Average gathering and transportation
throughput on EnLink's Louisiana
gas system exceeded 2 Bcf/d for the second quarter of 2018,
reflecting an 8 percent increase as compared to the second quarter
of 2017. Volumes are expected to remain at the high-end of
initial expectations for the second half of 2018.
North Texas
EnLink's operations in the Barnett Shale performed well during
the second quarter of 2018, with processing volumes remaining
sequentially flat and gathering and transportation volumes
declining slightly by approximately 1 percent. Segment profit
contribution was up approximately 4 percent during the second
quarter of 2018 as compared to the first quarter of
2018. Producer customers on EnLink's footprint are
reinvigorating their operational and drilling plans in the Barnett
Shale, which is translating into improved volume stability on
EnLink's footprint.
Second Quarter 2018 Earnings Call Details
The General Partner and the Partnership will hold a conference
call to discuss second quarter 2018 results on Wednesday,
August 1, 2018, at 8 a.m. Central Time (9
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/10121414 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 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. Visit EnLink.com for more information on how
EnLink connects energy to life.
Non-GAAP Financial Information & Other
Definitions
This press release contains non-generally accepted accounting
principles financial measures that we refer to as adjusted EBITDA,
distributable cash flow available to common unitholders
("distributable cash flow"), 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 (if any), accretion
expense associated with asset retirement obligations, non-cash rent
and distributions from unconsolidated affiliate investments less
payments under onerous performance obligations, non-controlling
interest, (income) loss from unconsolidated affiliate investments
and non-cash revenue from contract restructuring. We define
distributable cash flow as adjusted EBITDA (defined above), net to
the Partnership, less interest expense (excluding amortization of
the 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 Preferred Units and 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. 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.'s non-cash
expenses, (iii) deferred income tax expense (benefit), (iv)
corporate goodwill impairment, if any, and (v) successful
acquisition transaction costs, if any, less the General Partner's
interest in maintenance capital expenditures of EnLink Oklahoma
T.O., and less third-party non-controlling interest share of the
Partnership's 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.
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
each of the Partnership's and the General Partner's cash flow after
it has satisfied the capital and related requirements of its
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.
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 8.
Financial Statements and Supplementary Data – Note 15 – Segment
Information" in ENLK's Annual Report on Form 10-K for the year
ended December 31, 2017, and, when
available, "Item 1. Financial Statements – Note 11—Segment
Information" in ENLK's Quarterly Report on Form 10-Q for the three
months ended June 30, 2018, for further information about
segment profit (loss).
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 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 herein. 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, timing for completion of construction or
expansion projects, future operational results of our customers,
results in certain basins, future rig count information,
objectives, 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, or cash flows include, without
limitation,(a) the dependence on Devon for a substantial
portion of the natural gas and crude that we gather, process, and
transport, (b) developments that materially and adversely
affect Devon or other customers, (c) Devon's ability to
compete with us, (d) adverse developments in the midstream business
may reduce our ability to make distributions, (e) our
vulnerability to having a significant portion of our operations
concentrated in the Barnett Shale, (f) GIP's potential conflicts of
interest with us and the potential for GIP to favor GIP's own
interests to the detriment of the unitholders, (g) GIP's ability to
compete with us and the fact that it is not required to offer us
the opportunity to acquire additional assets or businesses, (h) a
default under GIP's credit facility could result in a change in
change in control of us, could adversely affect the price of our
common units, and could result in a default under our credit
facility, (i) continually competing for crude oil, condensate,
natural gas, and NGL supplies and any decrease in the availability
of such commodities, (j) decreases in the volumes that we gather,
process, fractionate, or transport, (k) construction risks in our
major development projects, (l) our ability to receive or renew
required permits and other approvals, (m) changes in the
availability and cost of capital, including as a result of a change
in our credit rating, (n) operating hazards, natural
disasters, weather-related issues or delays, casualty losses, and
other matters beyond our control, (o) impairments to goodwill,
long-lived assets and equity method investments, and (p) 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 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'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.
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
EnLink Midstream
Partners, LP
|
Selected Financial
Data
|
(All amounts in
millions except per unit amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Total
revenues
|
$
|
1,764.7
|
|
|
$
|
1,263.6
|
|
|
$
|
3,526.4
|
|
|
$
|
2,585.5
|
|
Cost of
sales
|
1,325.6
|
|
|
932.4
|
|
|
2,707.1
|
|
|
1,934.7
|
|
Gross operating
margin
|
439.1
|
|
|
331.2
|
|
|
819.3
|
|
|
650.8
|
|
Operating costs and
expenses, excluding cost of sales:
|
|
|
|
|
|
|
|
Operating
expenses
|
113.4
|
|
|
102.6
|
|
|
222.6
|
|
|
206.7
|
|
General and
administrative
|
29.1
|
|
|
29.6
|
|
|
55.3
|
|
|
64.6
|
|
(Gain) loss on
disposition of assets
|
1.2
|
|
|
(5.4)
|
|
|
1.3
|
|
|
(0.3)
|
|
Depreciation and
amortization
|
145.3
|
|
|
142.5
|
|
|
283.4
|
|
|
270.8
|
|
Impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
7.0
|
|
Gain on litigation
settlement
|
—
|
|
|
(8.5)
|
|
|
—
|
|
|
(26.0)
|
|
Total operating costs
and expenses, excluding cost of sales
|
289.0
|
|
|
260.8
|
|
|
562.6
|
|
|
522.8
|
|
Operating
income
|
150.1
|
|
|
70.4
|
|
|
256.7
|
|
|
128.0
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(43.7)
|
|
|
(47.1)
|
|
|
(87.4)
|
|
|
(91.6)
|
|
Gain on
extinguishment of debt
|
—
|
|
|
9.0
|
|
|
—
|
|
|
9.0
|
|
Income (loss) from
unconsolidated affiliates
|
4.4
|
|
|
(0.1)
|
|
|
7.4
|
|
|
0.6
|
|
Other
income
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
Total other
expense
|
(39.3)
|
|
|
(38.0)
|
|
|
(79.8)
|
|
|
(81.8)
|
|
Income before
non-controlling interest and income taxes
|
110.8
|
|
|
32.4
|
|
|
176.9
|
|
|
46.2
|
|
Income tax benefit
(provision)
|
2.1
|
|
|
0.3
|
|
|
1.1
|
|
|
(0.2)
|
|
Net income
|
112.9
|
|
|
32.7
|
|
|
178.0
|
|
|
46.0
|
|
Net income (loss)
attributable to non-controlling interest
|
14.0
|
|
|
3.1
|
|
|
19.0
|
|
|
(1.7)
|
|
Net income
attributable to ENLK
|
$
|
98.9
|
|
|
$
|
29.6
|
|
|
$
|
159.0
|
|
|
$
|
47.7
|
|
General partner
interest in net income
|
$
|
11.2
|
|
|
$
|
10.8
|
|
|
$
|
21.8
|
|
|
$
|
16.7
|
|
Limited partners'
interest in net income (loss) attributable to ENLK
|
$
|
58.9
|
|
|
$
|
(0.5)
|
|
|
$
|
80.5
|
|
|
$
|
(9.8)
|
|
Series B preferred
interest in net income attributable to ENLK
|
$
|
22.8
|
|
|
$
|
19.3
|
|
|
$
|
44.7
|
|
|
$
|
40.8
|
|
Series C preferred
interest in net income attributable to ENLK
|
$
|
6.0
|
|
|
$
|
—
|
|
|
$
|
12.0
|
|
|
$
|
—
|
|
Net income (loss)
attributable to ENLK per limited partners' unit:
|
|
|
|
|
|
|
|
Basic common
unit
|
$
|
0.17
|
|
|
$
|
—
|
|
|
$
|
0.23
|
|
|
$
|
(0.03)
|
|
Diluted common
unit
|
$
|
0.17
|
|
|
$
|
—
|
|
|
$
|
0.23
|
|
|
$
|
(0.03)
|
|
EnLink Midstream
Partners, LP
|
Reconciliation of
Net Income 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
June 30,
|
|
Six Months
Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income
|
$
|
112.9
|
|
|
$
|
32.7
|
|
|
$
|
178.0
|
|
|
$
|
46.0
|
|
Interest expense, net
of interest income
|
43.7
|
|
|
47.1
|
|
|
87.4
|
|
|
91.6
|
|
Depreciation and
amortization
|
145.3
|
|
|
142.5
|
|
|
283.4
|
|
|
270.8
|
|
Impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
7.0
|
|
(Income) loss from
unconsolidated affiliates (1)
|
(4.4)
|
|
|
0.1
|
|
|
(7.4)
|
|
|
(0.6)
|
|
Distributions from
unconsolidated affiliates
|
5.4
|
|
|
4.5
|
|
|
11.4
|
|
|
7.4
|
|
(Gain) loss on
disposition of assets
|
1.2
|
|
|
(5.4)
|
|
|
1.3
|
|
|
(0.3)
|
|
Gain on
extinguishment of debt
|
—
|
|
|
(9.0)
|
|
|
—
|
|
|
(9.0)
|
|
Unit-based
compensation
|
9.5
|
|
|
9.3
|
|
|
14.6
|
|
|
28.6
|
|
Income tax provision
(benefit)
|
(2.1)
|
|
|
(0.3)
|
|
|
(1.1)
|
|
|
0.2
|
|
(Gain) loss on
non-cash derivatives
|
10.5
|
|
|
(1.8)
|
|
|
14.0
|
|
|
(7.1)
|
|
Payments under
onerous performance obligation offset to other current and
long-term liabilities
|
(4.5)
|
|
|
(4.5)
|
|
|
(9.0)
|
|
|
(9.0)
|
|
Non-cash revenue from
contract restructuring (2)
|
(45.5)
|
|
|
—
|
|
|
(45.5)
|
|
|
—
|
|
Other (3)
|
(0.4)
|
|
|
1.9
|
|
|
0.7
|
|
|
2.7
|
|
Adjusted EBITDA
before non-controlling interest
|
$
|
271.6
|
|
|
$
|
217.1
|
|
|
$
|
527.8
|
|
|
$
|
428.3
|
|
Non-controlling
interest share of adjusted EBITDA (4)
|
(14.4)
|
|
|
(7.4)
|
|
|
(26.9)
|
|
|
(11.0)
|
|
Adjusted EBITDA, net
to ENLK
|
$
|
257.2
|
|
|
$
|
209.7
|
|
|
$
|
500.9
|
|
|
$
|
417.3
|
|
Interest expense, net
of interest income
|
(43.7)
|
|
|
(47.1)
|
|
|
(87.4)
|
|
|
(91.6)
|
|
Amortization of EOGP
installment payable discount included in interest expense
(5)
|
—
|
|
|
6.5
|
|
|
0.5
|
|
|
13.5
|
|
Litigation settlement
adjustment (6)
|
—
|
|
|
(5.8)
|
|
|
—
|
|
|
(18.1)
|
|
Current taxes and
other
|
(0.3)
|
|
|
0.4
|
|
|
(1.2)
|
|
|
(0.2)
|
|
Maintenance capital
expenditures, net to ENLK (7)
|
(12.1)
|
|
|
(9.4)
|
|
|
(18.3)
|
|
|
(13.6)
|
|
Preferred unit
accrued cash distributions (8)
|
(22.3)
|
|
|
—
|
|
|
(44.5)
|
|
|
—
|
|
Distributable cash
flow
|
$
|
178.8
|
|
|
$
|
154.3
|
|
|
$
|
350.0
|
|
|
$
|
307.3
|
|
|
|
|
|
|
|
|
|
Actual declared
distribution to common unitholders
|
$
|
153.0
|
|
|
$
|
151.9
|
|
|
$
|
305.9
|
|
|
$
|
303.3
|
|
Distribution
coverage
|
1.17x
|
|
|
1.02x
|
|
|
1.14x
|
|
|
1.01x
|
|
Distributions
declared per limited partner unit
|
$
|
0.39
|
|
|
$
|
0.39
|
|
|
$
|
0.78
|
|
|
$
|
0.78
|
|
|
|
(1)
|
Includes a loss of
$3.4 million for the six months ended June 30, 2017 from the sale
of HEP in March 2017.
|
(2)
|
In May 2018, we
restructured a natural gas gathering and processing contract, and,
as a result, recognized non-cash revenue representing the
discounted present value of a secured term loan
receivable.
|
(3)
|
Includes accretion
expense associated with asset retirement obligations 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 EOGP, NGP Natural Resources XI, L.P.'s ("NGP")
49.9% share of adjusted EBITDA from the Delaware Basin JV, Marathon
Petroleum Corporation's 50% share of adjusted EBITDA from the
Ascension JV, and other minor non-controlling interests.
|
(5)
|
Amortization of the
EOGP installment payable discount is considered non-cash interest
under the ENLK credit facility since the payment under the payable
is consideration for the acquisition of the EOGP assets.
|
(6)
|
Represents recoveries
from a lawsuit settled in 2017 for amounts not previously deducted
from distributable cash flow.
|
(7)
|
Excludes maintenance
capital expenditures that were contributed by other entities and
relate to the non-controlling interest share of our consolidated
entities.
|
(8)
|
Represents the cash
distributions earned by the Series B Preferred Units and Series C
Preferred Units of $16.3 million and $6.0 million, respectively,
for the three months ended June 30, 2018, and cash
distributions earned by the Series B Preferred Units and Series C
Preferred Units of $32.5 million and $12.0 million, respectively,
for the six months ended June 30, 2018. 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
June 30,
|
|
Six Months
Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net cash provided by
operating activities
|
$
|
238.0
|
|
|
$
|
158.0
|
|
|
$
|
430.7
|
|
|
$
|
332.2
|
|
Interest expense
(1)
|
43.6
|
|
|
40.1
|
|
|
85.8
|
|
|
77.4
|
|
Current income
tax
|
(0.3)
|
|
|
(0.6)
|
|
|
0.7
|
|
|
0.2
|
|
Distributions from
unconsolidated affiliate investment in excess of
earnings
|
0.5
|
|
|
4.5
|
|
|
1.9
|
|
|
7.4
|
|
Other (2)
|
(1.8)
|
|
|
4.8
|
|
|
—
|
|
|
5.7
|
|
Changes in operating
assets and liabilities which (provided) used cash:
|
|
|
|
|
|
|
|
Accounts receivable,
accrued revenues, inventories and other
|
31.2
|
|
|
(2.6)
|
|
|
86.8
|
|
|
(22.0)
|
|
Accounts payable,
accrued gas and crude oil purchases and other (3)
|
(39.6)
|
|
|
12.9
|
|
|
(78.1)
|
|
|
27.4
|
|
Adjusted EBITDA
before non-controlling interest
|
$
|
271.6
|
|
|
$
|
217.1
|
|
|
$
|
527.8
|
|
|
$
|
428.3
|
|
Non-controlling
interest share of adjusted EBITDA (4)
|
(14.4)
|
|
|
(7.4)
|
|
|
(26.9)
|
|
|
(11.0)
|
|
Adjusted EBITDA, net
to ENLK
|
$
|
257.2
|
|
|
$
|
209.7
|
|
|
$
|
500.9
|
|
|
$
|
417.3
|
|
Interest expense, net
of interest income
|
(43.7)
|
|
|
(47.1)
|
|
|
(87.4)
|
|
|
(91.6)
|
|
Amortization of EOGP.
installment payable discount included in interest expense
(5)
|
—
|
|
|
6.5
|
|
|
0.5
|
|
|
13.5
|
|
Litigation settlement
adjustment (6)
|
—
|
|
|
(5.8)
|
|
|
—
|
|
|
(18.1)
|
|
Current taxes and
other
|
(0.3)
|
|
|
0.4
|
|
|
(1.2)
|
|
|
(0.2)
|
|
Maintenance capital
expenditures, net to ENLK (7)
|
(12.1)
|
|
|
(9.4)
|
|
|
(18.3)
|
|
|
(13.6)
|
|
Preferred unit
accrued cash distributions (8)
|
(22.3)
|
|
|
—
|
|
|
(44.5)
|
|
|
—
|
|
Distributable cash
flow
|
$
|
178.8
|
|
|
$
|
154.3
|
|
|
$
|
350.0
|
|
|
$
|
307.3
|
|
|
|
(1)
|
Excludes non-cash
interest income and amortization of debt issuance costs and
discount and premium.
|
(2)
|
Includes non-cash
rent, which relates to lease incentives pro-rated over the lease
term, and accruals for settled commodity swap
transactions.
|
(3)
|
Net of payments under
onerous performance obligation offset to other current and
long-term liabilities.
|
(4)
|
Non-controlling
interest share of adjusted EBITDA includes ENLC's 16% share of
adjusted EBITDA from EOGP, NGP's 49.9% share of adjusted EBITDA
from the Delaware Basin JV, Marathon Petroleum Corporation's 50%
share of adjusted EBITDA from the Ascension JV, and other minor
non-controlling interests.
|
(5)
|
Amortization of the
EOGP installment payable discount is considered non-cash interest
under the ENLK credit facility since the payment under the payable
is consideration for the acquisition of the EOGP assets.
|
(6)
|
Represents recoveries
from a lawsuit settled in 2017 for amounts not previously deducted
from distributable cash flow.
|
(7)
|
Excludes maintenance
capital expenditures that were contributed by other entities and
relate to the non-controlling interest share of our consolidated
entities.
|
(8)
|
Represents the cash
distributions earned by the Series B Preferred Units and Series C
Preferred Units of $16.3 million and $6.0 million, respectively,
for the three months ended June 30, 2018, and cash
distributions earned by the Series B Preferred Units and Series C
Preferred Units of $32.5 million and $12.0 million, respectively,
for the six months ended June 30, 2018. 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
June 30,
|
|
Six Months
Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Midstream
Volumes:
|
|
|
|
|
|
|
|
Texas
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,258,300
|
|
|
2,272,100
|
|
|
2,224,700
|
|
|
2,273,100
|
|
Processing
(MMBtu/d)
|
1,283,100
|
|
|
1,179,700
|
|
|
1,238,800
|
|
|
1,170,900
|
|
Louisiana
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,094,100
|
|
|
1,939,500
|
|
|
2,158,200
|
|
|
1,935,400
|
|
Processing
(MMBtu/d)
|
395,600
|
|
|
446,500
|
|
|
418,600
|
|
|
457,100
|
|
NGL Fractionation
(Gals/d)
|
6,480,100
|
|
|
5,819,600
|
|
|
6,342,400
|
|
|
5,534,100
|
|
Oklahoma
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,235,500
|
|
|
765,500
|
|
|
1,142,200
|
|
|
735,600
|
|
Processing
(MMBtu/d)
|
1,200,700
|
|
|
733,100
|
|
|
1,135,400
|
|
|
693,200
|
|
Crude and
Condensate Segment
|
|
|
|
|
|
|
|
Crude Oil Handling
(Bbls/d)
|
148,600
|
|
|
107,600
|
|
|
138,200
|
|
|
109,000
|
|
Brine Disposal
(Bbls/d)
|
3,500
|
|
|
4,800
|
|
|
3,100
|
|
|
4,600
|
|
EnLink Midstream,
LLC
|
Selected Financial
Data
|
(All amounts in
millions except per unit amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Total
revenues
|
$
|
1,764.7
|
|
|
$
|
1,263.6
|
|
|
$
|
3,526.4
|
|
|
$
|
2,585.5
|
|
Cost of
sales
|
1,325.6
|
|
|
932.4
|
|
|
2,707.1
|
|
|
1,934.7
|
|
Gross operating
margin
|
439.1
|
|
|
331.2
|
|
|
819.3
|
|
|
650.8
|
|
Operating costs and
expenses, excluding cost of sales:
|
|
|
|
|
|
|
|
Operating
expenses
|
113.4
|
|
|
102.6
|
|
|
222.6
|
|
|
206.7
|
|
General and
administrative
|
30.4
|
|
|
31.1
|
|
|
57.9
|
|
|
67.2
|
|
(Gain) loss on
disposition of assets
|
1.2
|
|
|
(5.4)
|
|
|
1.3
|
|
|
(0.3)
|
|
Depreciation and
amortization
|
145.3
|
|
|
142.5
|
|
|
283.4
|
|
|
270.8
|
|
Impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
7.0
|
|
Gain on litigation
settlement
|
—
|
|
|
(8.5)
|
|
|
—
|
|
|
(26.0)
|
|
Total
operating costs and expenses, excluding cost of sales
|
290.3
|
|
|
262.3
|
|
|
565.2
|
|
|
525.4
|
|
Operating
income
|
148.8
|
|
|
68.9
|
|
|
254.1
|
|
|
125.4
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(44.6)
|
|
|
(47.7)
|
|
|
(89.1)
|
|
|
(92.6)
|
|
Gain on
extinguishment of debt
|
—
|
|
|
9.0
|
|
|
—
|
|
|
9.0
|
|
Income (loss) from
unconsolidated affiliates
|
4.4
|
|
|
(0.1)
|
|
|
7.4
|
|
|
0.6
|
|
Other income
(expense)
|
(0.1)
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
Total other
expense
|
(40.3)
|
|
|
(38.6)
|
|
|
(81.5)
|
|
|
(82.8)
|
|
Income before
non-controlling interest and income taxes
|
108.5
|
|
|
30.3
|
|
|
172.6
|
|
|
42.6
|
|
Income tax
provision
|
(6.3)
|
|
|
(3.2)
|
|
|
(13.3)
|
|
|
(6.2)
|
|
Net income
|
102.2
|
|
|
27.1
|
|
|
159.3
|
|
|
36.4
|
|
Net income
attributable to non-controlling interest
|
74.2
|
|
|
21.2
|
|
|
118.9
|
|
|
32.4
|
|
Net income
attributable to ENLC
|
$
|
28.0
|
|
|
$
|
5.9
|
|
|
$
|
40.4
|
|
|
$
|
4.0
|
|
Net income
attributable to ENLC per unit:
|
|
|
|
|
|
|
|
Basic common
unit
|
$
|
0.15
|
|
|
$
|
0.03
|
|
|
$
|
0.22
|
|
|
$
|
0.02
|
|
Diluted common
unit
|
$
|
0.15
|
|
|
$
|
0.03
|
|
|
$
|
0.22
|
|
|
$
|
0.02
|
|
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
June 30,
|
|
Six Months
Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Distribution declared
by ENLK associated with (1):
|
|
|
|
|
|
|
|
General partner
interest
|
$
|
0.6
|
|
|
$
|
0.7
|
|
|
$
|
1.2
|
|
|
$
|
1.3
|
|
Incentive
distribution rights
|
14.8
|
|
|
14.6
|
|
|
29.6
|
|
|
29.3
|
|
ENLK common units
owned
|
34.6
|
|
|
34.6
|
|
|
69.1
|
|
|
69.1
|
|
Total share of
ENLK distributions declared
|
$
|
50.0
|
|
|
$
|
49.9
|
|
|
$
|
99.9
|
|
|
$
|
99.7
|
|
Adjusted EBITDA of
EOGP (2)
|
10.3
|
|
|
5.1
|
|
|
19.2
|
|
|
7.7
|
|
Total cash
available
|
$
|
60.3
|
|
|
$
|
55.0
|
|
|
$
|
119.1
|
|
|
$
|
107.4
|
|
Uses of
cash:
|
|
|
|
|
|
|
|
General and
administrative expenses
|
(1.3)
|
|
|
(1.6)
|
|
|
(2.5)
|
|
|
(2.6)
|
|
Current income taxes
(3)
|
(0.1)
|
|
|
(0.2)
|
|
|
(0.2)
|
|
|
(0.2)
|
|
Interest
expense
|
(0.9)
|
|
|
(0.6)
|
|
|
(1.7)
|
|
|
(1.0)
|
|
Maintenance capital
expenditures (4)
|
(0.1)
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
Total cash
used
|
$
|
(2.4)
|
|
|
$
|
(2.4)
|
|
|
$
|
(4.6)
|
|
|
$
|
(3.8)
|
|
ENLC cash available
for distribution
|
$
|
57.9
|
|
|
$
|
52.6
|
|
|
$
|
114.5
|
|
|
$
|
103.6
|
|
|
|
|
|
|
|
|
|
Actual declared
distribution to common unitholders
|
$
|
48.9
|
|
|
$
|
46.7
|
|
|
$
|
97.1
|
|
|
$
|
93.4
|
|
Distribution
coverage
|
1.18x
|
|
|
1.13x
|
|
|
1.18x
|
|
|
1.11x
|
|
Distributions
declared per ENLC unit
|
$
|
0.267
|
|
|
$
|
0.255
|
|
|
$
|
0.530
|
|
|
$
|
0.510
|
|
|
|
(1)
|
Represents
distributions declared by ENLK and to be paid to ENLC on
August 13, 2018 and distributions paid by ENLK to ENLC on
May 14, 2018, August 11, 2017, and May 12,
2017.
|
(2)
|
Represents ENLC's
interest in EOGP adjusted EBITDA, which is disbursed to ENLC by
EOGP on a monthly basis. EOGP adjusted EBITDA is defined as
earnings before depreciation and amortization and provision for
income taxes and includes allocated expenses from ENLK.
|
(3)
|
Represents ENLC's
stand-alone current tax expense.
|
(4)
|
Represents ENLC's
interest in EOGP's maintenance capital expenditures which is netted
against the monthly disbursement of EOGP's adjusted EBITDA per (2)
above.
|
EnLink Midstream,
LLC
|
Reconciliation of
Net Income of ENLC to ENLC Cash Available for
Distribution
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income of
ENLC
|
$
|
102.2
|
|
|
$
|
27.1
|
|
|
$
|
159.3
|
|
|
$
|
36.4
|
|
Less: Net income
attributable to ENLK
|
98.9
|
|
|
29.6
|
|
|
159.0
|
|
|
47.7
|
|
Net income (loss) of
ENLC excluding ENLK
|
$
|
3.3
|
|
|
$
|
(2.5)
|
|
|
$
|
0.3
|
|
|
$
|
(11.3)
|
|
ENLC's share of
distributions from ENLK (1)
|
50.0
|
|
|
49.9
|
|
|
99.9
|
|
|
99.7
|
|
ENLC's interest in
EOGP's non-cash expenses (2)
|
(2.3)
|
|
|
4.2
|
|
|
2.4
|
|
|
8.2
|
|
ENLC deferred income
tax expense (3)
|
8.4
|
|
|
3.3
|
|
|
14.2
|
|
|
5.8
|
|
Non-controlling
interest share of ENLK's net (income) loss (4)
|
(1.4)
|
|
|
(2.2)
|
|
|
(2.1)
|
|
|
1.2
|
|
Other items
(5)
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.2)
|
|
|
—
|
|
ENLC cash available
for distribution
|
$
|
57.9
|
|
|
$
|
52.6
|
|
|
$
|
114.5
|
|
|
$
|
103.6
|
|
|
|
(1)
|
Represents
distributions declared by ENLK and to be paid to ENLC on
August 13, 2018 and distributions paid by ENLK to ENLC on
May 14, 2018, August 11, 2017, and May 12,
2017.
|
(2)
|
Includes depreciation
and amortization, unit-based compensation expense allocated to
EOGP, gains and losses on sale of property, and non-cash revenue
recognized upon receipt of secured term loan receivable related to
contract restructuring.
|
(3)
|
Represents ENLC's
stand-alone deferred taxes.
|
(4)
|
Represents NGP's
49.9% share of the Delaware Basin JV, Marathon Petroleum
Corporation's 50% share of the Ascension JV, and other minor
non-controlling interests.
|
(5)
|
Represents ENLC's
interest in EOGP's maintenance capital expenditures (which is
netted against the monthly disbursement of EOGP's adjusted EBITDA)
and other non-cash items not included in cash available for
distribution.
|
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)
|
$
|
329
|
|
|
$
|
349
|
|
|
$
|
369
|
|
Interest expense, net
of interest income
|
180
|
|
|
184
|
|
|
188
|
|
Depreciation and
amortization
|
556
|
|
|
566
|
|
|
576
|
|
Income from
unconsolidated affiliate investments
|
(15)
|
|
|
(17)
|
|
|
(19)
|
|
Distribution from
unconsolidated affiliate investments
|
18
|
|
|
20
|
|
|
22
|
|
(Gain) loss on
disposition of assets
|
1
|
|
|
1
|
|
|
1
|
|
Unit-based
compensation
|
39
|
|
|
34
|
|
|
29
|
|
Income
taxes
|
—
|
|
|
1
|
|
|
2
|
|
(Gain) loss on
non-cash derivatives
|
14
|
|
|
14
|
|
|
14
|
|
Payments under
onerous performance obligation offset to other current and
long-term liabilities
|
(18)
|
|
|
(18)
|
|
|
(18)
|
|
Non-cash revenue from
contract restructuring
|
(46)
|
|
|
(46)
|
|
|
(46)
|
|
Adjusted EBITDA
before non-controlling interest
|
$
|
1,058
|
|
|
$
|
1,088
|
|
|
$
|
1,118
|
|
Non-controlling
interest share of adjusted EBITDA (3)
|
(58)
|
|
|
(63)
|
|
|
(68)
|
|
Adjusted EBITDA, net
to EnLink Midstream Partners, LP
|
$
|
1,000
|
|
|
$
|
1,025
|
|
|
$
|
1,050
|
|
Interest expense, net
of interest income
|
(180)
|
|
|
(184)
|
|
|
(188)
|
|
Amortization of EOGP
installment payable discount included in interest expense
(4)
|
1
|
|
|
1
|
|
|
1
|
|
Preferred unit
accrued cash distributions
|
(89)
|
|
|
(89)
|
|
|
(89)
|
|
Current taxes and
other
|
(2)
|
|
|
(6)
|
|
|
(9)
|
|
Maintenance capital
expenditures, net to EnLink Midstream Partners, LP
|
(50)
|
|
|
(52)
|
|
|
(55)
|
|
Distributable cash
flow
|
$
|
680
|
|
|
$
|
695
|
|
|
$
|
710
|
|
|
|
(1)
|
The revised
forward-looking net income guidance for the year ended December 31,
2018 includes the actual results for the six months ended June 30,
2018 and the projected results for the second half of the year
ended December 31, 2018. The forward-looking net income guidance
from July 1, 2018 through 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 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 (i) ENLC's 16% share of net income from EOGP, (ii)
NGP's 49.9% share of net income from the Delaware Basin JV and
(iii) Marathon Petroleum Company's 50% share of net income from the
Ascension JV.
|
(3)
|
Non-controlling
interest share of adjusted EBITDA includes estimates for (i) ENLC's
16% share of adjusted EBITDA from EOGP, (ii) NGP's 49.9% share of
adjusted EBITDA from the Delaware Basin JV, (iii) Marathon's 50%
share of adjusted EBITDA from the Ascension JV and (iv) other minor
non-controlling interests.
|
(4)
|
Amortization of the
EOGP 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 EOGP assets.
|
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)
|
$
|
285
|
|
|
$
|
314
|
|
|
$
|
343
|
|
Less: Net income
attributable to ENLK (3)
|
(280)
|
|
|
(305)
|
|
|
(330)
|
|
Net income of ENLC
excluding ENLK
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
13
|
|
ENLC's share of
distributions from ENLK (4)
|
200
|
|
|
200
|
|
|
200
|
|
ENLC's interest in EOGP
non-cash expenses
|
12
|
|
|
12
|
|
|
12
|
|
Non-controlling
interest share of ENLK's net income (5)
|
(9)
|
|
|
(9)
|
|
|
(9)
|
|
ENLC deferred income
tax expense (6)
|
23
|
|
|
24
|
|
|
25
|
|
Maintenance capital
expenditures (7)
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
ENLC cash available
for distribution
|
$
|
230
|
|
|
$
|
235
|
|
|
$
|
240
|
|
|
|
(1)
|
The revised
forward-looking net income guidance for the year ended December 31,
2018 includes the actual results for the six months ended June 30,
2018 and the projected results for the second half of the year
ended December 31, 2018. The forward-looking net income guidance
from July 1, 2018 through 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 EOGP.
|
(4)
|
Represents quarterly
distributions estimated to be paid to ENLC by ENLK for
2018.
|
(5)
|
Represents estimated
amounts for (i) NGP's 49.9% share of adjusted EBITDA from the
Delaware Basin JV, (ii) Marathon Petroleum Company's 50% share of
adjusted EBITDA from the Ascension JV and (iii) 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
EOGP.
|
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SOURCE EnLink Midstream