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Enterprise Reports 2016 Results
For 2016, Enterprise reported an increase in operating income to
“Enterprise reported solid results in 2016, despite another challenging year for the U.S. energy industry,” stated
“During 2016, we successfully completed
“I would like to thank our team of over 6,700 employees for their exceptional contributions to Enterprise’s successes during 2016. I would also like to thank our debt and equity investors for their continued support through this period as we make investments to expand our integrated midstream energy system,” concluded Teague.
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Fourth Quarter and Full Year 2016 Highlights |
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Three months ended December 31, |
Twelve months ended December 31, |
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2016 |
2015 |
2016 |
2015 |
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| ($ in millions, except per unit amounts) | ||||||||||||||||||||
| Operating income |
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$ |
923 |
$ | 935 | $ | 3,581 | $ | 3,540 | |||||||||||
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Net income(1) |
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$ |
670 |
$ | 694 | $ | 2,553 | $ | 2,558 | |||||||||||
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Fully diluted earnings per unit(1) |
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$ |
0.31 |
$ | 0.34 | $ | 1.20 | $ | 1.26 | |||||||||||
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Net cash flow provided by operating activities(2) |
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$ |
1,408 |
$ |
1,411 |
$ |
4,067 |
$ |
4,002 |
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Total gross operating margin(3) |
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$ |
1,357 |
$ | 1,355 | $ | 5,248 | $ | 5,339 | |||||||||||
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Adjusted EBITDA(3) |
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$ |
1,355 |
$ | 1,335 | $ | 5,256 | $ | 5,267 | |||||||||||
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Distributable cash flow(3)(4) |
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$ |
1,031 |
$ | 1,089 | $ | 4,103 | $ | 5,607 | |||||||||||
| (1) | Net income and fully diluted earnings per unit for the fourth quarters of 2016 and 2015 include non-cash impairment charges of approximately $24 million, or $0.01 per unit, for each period. For the years ended December 31, 2016 and 2015, net income and fully diluted earnings per unit include non-cash impairment and related charges of $53 million, or $0.02 per unit, and $203 million, or $0.10 per unit, respectively. | |
| (2) | Net cash flow provided by operating activities includes the impact of timing of cash receipts and payments related to operations. For the fourth quarters of 2016 and 2015, the net effect of changes in operating accounts, which are a component of net cash flow provided by operating activities, were net increases of $309 million and $305 million, respectively. For the years ended December 31, 2016 and 2015, the net effect of changes in operating accounts were net decreases of $181 million and $323 million, respectively. | |
| (3) | Total gross operating margin, adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and distributable cash flow are non-GAAP financial measures that are defined and reconciled later in this press release. | |
| (4) | Distributable cash flow included proceeds from asset sales and insurance recoveries of $3 million and $71 million for the fourth quarters of 2016 and 2015, respectively, and $47 million and $1.6 billion for the years ended December 31, 2016 and 2015, respectively. | |
- Enterprise increased its cash distribution with respect to the fourth quarter of 2016 by 5.1 percent over the fourth quarter of 2015 to
$0.41 per unit, or$1.64 per unit on an annualized basis. This is the 50th consecutive quarterly increase and the 59th increase since the partnership’s initial public offering in 1998. This distribution will be paid onFebruary 7, 2017 to unitholders of record as of the close of business onJanuary 31, 2017 ; - Enterprise reported distributable cash flow of
$1 billion for the fourth quarter of 2016, which provided 1.2 times coverage of the$0.41 per unit cash distribution, and retained$159 million of distributable cash flow in the fourth quarter of 2016. - Fourth Quarter Volume Highlights
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Three months ended December 31, |
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| 2016 | 2015 | |||||||
| NGL, crude oil, refined products & petrochemical pipeline volumes (million BPD) |
5.3 |
5.0 |
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| Marine terminal volumes (million BPD) | 1.3 | 1.1 | ||||||
| Natural gas pipeline volumes (TBtu/d) | 11.5 | 11.9 | ||||||
| NGL fractionation volumes (MBPD) | 846 | 846 | ||||||
| Fee-based natural gas processing volumes (Bcf/d) | 4.4 | 4.9 | ||||||
| Equity NGL production volumes (MBPD) | 156 | 147 | ||||||
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As used in this press release, “NGL” means natural gas liquids, “BPD” means barrels per day, “MBPD” means thousand barrels per day, “Bcf/d” means billion cubic feet per day; and “TBtu/d” means trillion British thermal units per day. |
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- Capital investments were
$553 million in the fourth quarter of 2016, including$73 million of sustaining capital expenditures. Total capital investment for 2016 was$4.1 billion , which includes$1.0 billion that Enterprise paid inJuly 2016 for the second and final installment payment for the acquisition of the EFS Midstream assets and$252 million of sustaining capital expenditures.
Review of Fourth Quarter 2016 Segment Performance
NGL Pipelines & Services – Gross operating margin for the NGL Pipelines & Services segment increased 7 percent to
Enterprise’s natural gas processing and related NGL marketing business generated gross operating margin of
Enterprise’s natural gas processing plants reported fee-based processing volumes of 4.4 Bcf/d in the fourth quarter of 2016 compared to 4.9 Bcf/d in the fourth quarter of 2015. This decrease in the fee-based processing volumes was primarily attributable to down time at the Pascagoula plant and natural gas production declines in
Partially offsetting the decline in gross operating margin from the natural gas processing business was a
Gross operating margin from the partnership’s NGL pipelines and storage business increased 10 percent, to
Enterprise’s ATEX and Aegis ethane pipelines reported a
Gross operating margin from the partnership’s LPG export terminal on the Houston Ship Channel and a related pipeline increased
Partially offsetting these increases in gross operating margin was a
Enterprise’s ethane export marine terminal, which began service in
Gross operating margin from the partnership’s NGL fractionation business increased 16 percent to
Crude Oil Pipelines & Services – Gross operating margin from the partnership’s Crude Oil Pipelines & Services segment was
Enterprise’s
Gross operating margin from Enterprise’s crude oil marketing and related activities decreased
Enterprise’s
Natural Gas Pipelines & Services – Enterprise’s Natural Gas Pipelines & Services segment reported gross operating margin of
The Texas Intrastate system reported gross operating margin of
The Acadian Gas System reported gross operating margin of
Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment was
Gross operating margin for Enterprise’s butane isomerization and related operations decreased
Gross operating margin from the partnership’s propylene business increased to
Enterprise’s refined products pipelines and related services business reported gross operating margin of
Capitalization
Total debt principal outstanding at
Total capital spending in the fourth quarter of 2016 was
For 2017, we currently expect to invest in the range of
2016 K-1 Tax Packages
The Enterprise K-1 tax packages are expected to be made available online by
Conference Call to Discuss Fourth Quarter 2016 Earnings
Enterprise will host a conference call today to discuss fourth quarter 2016 earnings. The call will be broadcast live over the Internet beginning at
Use of Non-GAAP Financial Measures
This press release and accompanying schedules include the non-GAAP financial measures of total gross operating margin, distributable cash flow and Adjusted EBITDA. The accompanying schedules provide definitions of these non-GAAP financial measures and reconciliations to their most directly comparable financial measure calculated and presented in accordance with GAAP. Our non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flow provided by operating activities or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP financial measures may not be comparable to similarly-titled measures of other companies because they may not calculate such measures in the same manner as we do.
Company Information and Use of Forward-Looking Statements
This press release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve certain risks and uncertainties, such as the partnership’s expectations regarding future results, capital expenditures, project completions, liquidity and financial market conditions. These risks and uncertainties include, among other things, insufficient cash from operations, adverse market conditions, governmental regulations and other factors discussed in Enterprise’s filings with the
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Enterprise Products Partners L.P. |
Exhibit A | |||||||||||||||||||
| Condensed Statements of Consolidated Operations – UNAUDITED | ||||||||||||||||||||
| ($ in millions, except per unit amounts) | ||||||||||||||||||||
| For the Three Months
Ended December 31, |
For the Year
Ended December 31, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
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Revenues |
$ | 6,478.8 | $ | 6,155.0 | $ | 23,022.3 | $ | 27,027.9 | ||||||||||||
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Costs and expenses: |
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| Operating costs and expenses | 5,608.7 | 5,242.2 | 19,643.5 | 23,668.7 | ||||||||||||||||
| General and administrative costs | 39.1 | 49.4 | 160.1 | 192.6 | ||||||||||||||||
| Total costs and expenses | 5,647.8 | 5,291.6 | 19,803.6 | 23,861.3 | ||||||||||||||||
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Equity in income of unconsolidated affiliates |
92.2 | 71.1 | 362.0 | 373.6 | ||||||||||||||||
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Operating income |
923.2 | 934.5 | 3,580.7 | 3,540.2 | ||||||||||||||||
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Other income (expense): |
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| Interest expense | (247.0 | ) | (238.6 | ) | (982.6 | ) | (961.8 | ) | ||||||||||||
| Other, net | 3.8 | (9.3 | ) | (21.7 | ) | (22.5 | ) | |||||||||||||
| Total other expense | (243.2 | ) | (247.9 | ) | (1,004.3 | ) | (984.3 | ) | ||||||||||||
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Income before income taxes |
680.0 | 686.6 | 2,576.4 | 2,555.9 | ||||||||||||||||
| Benefit from (provision for) income taxes | (10.3 | ) | 6.9 | (23.4 | ) | 2.5 | ||||||||||||||
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Net income |
669.7 | 693.5 | 2,553.0 | 2,558.4 | ||||||||||||||||
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Net income attributable to noncontrolling interests |
(10.9 | ) | (8.7 | ) | (39.9 | ) | (37.2 | ) | ||||||||||||
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Net income attributable to limited partners |
$ | 658.8 | $ | 684.8 | $ | 2,513.1 | $ | 2,521.2 | ||||||||||||
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Per unit data (fully diluted): |
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| Earnings per unit | $ | 0.31 | $ | 0.34 | $ | 1.20 | $ | 1.26 | ||||||||||||
| Average limited partner units outstanding (in millions) | 2,116.6 | 2,014.4 | 2,089.1 | 1,998.6 | ||||||||||||||||
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Supplemental financial data: |
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| Net cash flow provided by operating activities | $ | 1,407.8 | $ | 1,411.2 | $ | 4,066.8 | $ | 4,002.4 | ||||||||||||
| Total debt principal outstanding at end of period | $ | 23,901.6 | $ | 22,738.5 | $ | 23,901.6 | $ | 22,738.5 | ||||||||||||
| Non-GAAP distributable cash flow (1) | $ | 1,031.1 | $ | 1,088.8 | $ | 4,102.8 | $ | 5,607.3 | ||||||||||||
| Non-GAAP Adjusted EBITDA (2) | $ | 1,355.1 | $ | 1,335.1 | $ | 5,255.9 | $ | 5,267.3 | ||||||||||||
| Gross operating margin by segment: | ||||||||||||||||||||
| NGL Pipelines & Services | $ | 784.3 | $ | 730.3 | $ | 2,990.6 | $ | 2,771.6 | ||||||||||||
| Crude Oil Pipelines & Services | 220.9 | 257.7 | 854.6 | 961.9 | ||||||||||||||||
| Natural Gas Pipelines & Services | 201.3 | 194.3 | 734.9 | 782.6 | ||||||||||||||||
| Petrochemical & Refined Products Services | 148.7 | 171.1 | 650.6 | 718.5 | ||||||||||||||||
| Offshore Pipelines & Services | -- | -- | -- | 97.5 | ||||||||||||||||
| Total segment gross operating margin (3) | 1,355.2 | 1,353.4 | 5,230.7 | 5,332.1 | ||||||||||||||||
| Net adjustment for shipper make-up rights (4) | 2.1 | 1.1 | 17.1 | 7.1 | ||||||||||||||||
| Non-GAAP total gross operating margin (5) | $ | 1,357.3 | $ | 1,354.5 | $ | 5,247.8 | $ | 5,339.2 | ||||||||||||
| Capital spending: | ||||||||||||||||||||
| Capital expenditures, net (6) | $ | 534.3 | $ | 1,192.5 | $ | 2,984.1 | $ | 3,811.6 | ||||||||||||
| Equity consideration issued for Step 2 of Oiltanking acquisition | -- | -- | -- | 1,408.7 | ||||||||||||||||
| Cash used for business combinations, net of cash received | -- | 11.4 | 1,000.0 | 1,056.5 | ||||||||||||||||
| Investments in unconsolidated affiliates | 18.9 | 31.9 | 138.8 | 162.6 | ||||||||||||||||
| Other investing activities | -- | -- | 0.4 | 5.3 | ||||||||||||||||
| Total capital spending, cash and non-cash | $ | 553.2 | $ | 1,235.8 | $ | 4,123.3 | $ | 6,444.7 | ||||||||||||
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(1) |
See Exhibit D for reconciliation to GAAP net cash flow provided by operating activities. |
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(2) |
See Exhibit E for reconciliation to GAAP net cash flow provided by operating activities. |
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(3) |
Within the context of this table, total segment gross operating margin represents a subtotal and corresponds to measures similarly titled within the financial statement footnotes provided in our quarterly and annual filings with the U.S. Securities and Exchange Commission (“SEC”). |
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(4) |
Gross operating margin by segment for NGL Pipelines & Services and Crude Oil Pipelines & Services reflects adjustments for non-refundable deferred transportation revenues relating to the make-up rights of committed shippers on certain major pipeline projects. These adjustments are included in management's evaluation of segment results. However, these adjustments are excluded from non-GAAP total gross operating margin in compliance with recently issued guidance from the SEC. |
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(5) |
See Exhibit F for reconciliation to GAAP total operating income. |
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(6) |
Capital expenditures for property, plant and equipment are presented net of contributions in aid of construction cost. |
|
Enterprise Products Partners L.P. |
Exhibit B |
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| Selected Operating Data – UNAUDITED | |||||||||||||
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For the Three Months Ended December 31, |
For the Year
Ended December 31, |
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| 2016 | 2015 | 2016 | 2015 | ||||||||||
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Selected operating data: (1) |
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| NGL Pipelines & Services, net: | |||||||||||||
| NGL pipeline transportation volumes (MBPD) | 3,062 | 2,858 | 2,965 | 2,700 | |||||||||
| NGL marine terminal volumes (MBPD) | 440 | 327 | 436 | 302 | |||||||||
| NGL fractionation volumes (MBPD) | 846 | 846 | 828 | 826 | |||||||||
| Equity NGL production (MBPD) (2) | 156 | 147 | 141 | 133 | |||||||||
| Fee-based natural gas processing (MMcf/d) (3) | 4,384 | 4,886 | 4,736 | 4,905 | |||||||||
| Crude Oil Pipelines & Services, net: | |||||||||||||
| Crude oil transportation volumes (MBPD) | 1,402 | 1,377 | 1,388 | 1,474 | |||||||||
| Crude oil marine terminal volumes (MBPD) | 468 | 443 | 495 | 557 | |||||||||
| Natural Gas Pipelines & Services, net: | |||||||||||||
| Natural gas transportation volumes (BBtus/d) (4) | 11,476 | 11,912 | 11,874 | 12,321 | |||||||||
| Petrochemical & Refined Products Services, net: | |||||||||||||
| Propylene fractionation volumes (MBPD) | 67 | 71 | 73 | 71 | |||||||||
| Butane isomerization volumes (MBPD) | 94 | 115 | 108 | 96 | |||||||||
| Standalone DIB processing volumes (MBPD) | 84 | 78 | 89 | 79 | |||||||||
| Octane additive and related plant production volumes (MBPD) | 26 | 15 | 22 | 17 | |||||||||
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Pipeline transportation volumes, primarily refined products and petrochemicals (MBPD) |
840 | 804 | 837 | 784 | |||||||||
| Refined products and petrochemicals marine terminal volumes
(MBPD) |
417 | 336 | 389 | 355 | |||||||||
| Offshore Pipelines & Services, net: | |||||||||||||
| Natural gas transportation volumes (BBtus/d) | -- | -- | -- | 587 | |||||||||
| Crude oil transportation volumes (MBPD) | -- | -- | -- | 357 | |||||||||
| Platform natural gas processing (MMcf/d) | -- | -- | -- | 101 | |||||||||
| Platform crude oil processing (MBPD) | -- | -- | -- | 13 | |||||||||
| Total, net: | |||||||||||||
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NGL, crude oil, refined products and petrochemical transportation volumes (MBPD) |
5,304 | 5,039 | 5,190 | 5,315 | |||||||||
| Natural gas transportation volumes (BBtus/d) | 11,476 | 11,912 | 11,874 | 12,908 | |||||||||
| Equivalent transportation volumes (MBPD) (5) | 8,324 | 8,174 | 8,315 | 8,712 | |||||||||
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NGL, crude oil, refined products and petrochemical marine terminal volumes (MBPD) |
1,325 | 1,106 | 1,320 | 1,214 | |||||||||
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(1) |
Operating rates are reported on a net basis, which takes into account our ownership interests in certain joint ventures, and include volumes for newly constructed assets from the related in-service dates and for recently purchased assets from the related acquisition dates. |
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(2) |
Represents the NGL volumes we earn and take title to in connection with our processing activities. |
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(3) |
Volumes reported correspond to the revenue streams earned by our gas plants. “MMcf/d” means million cubic feet per day. |
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(4) |
“BBtus/d” means billion British thermal units per day. |
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(5) |
Represents total NGL, crude oil, refined products and petrochemical transportation volumes plus equivalent energy volumes where 3.8 million British thermal units (“MMBtus”) of natural gas transportation volumes are equivalent to one barrel of NGLs transported. |
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Enterprise Products Partners L.P. |
Exhibit C | ||||||||||||||||||||
| Selected Commodity Price Information | |||||||||||||||||||||
| Polymer | Refinery | ||||||||||||||||||||
| Natural | Normal | Natural | Grade | Grade | WTI | LLS | |||||||||||||||
| Gas, | Ethane, | Propane, | Butane, | Isobutane, | Gasoline, | Propylene, | Propylene, | Crude Oil, | Crude Oil, | ||||||||||||
| $/MMBtu | $/gallon | $/gallon | $/gallon | $/gallon | $/gallon | $/pound | $/pound | $/barrel | $/barrel | ||||||||||||
| (1) | (2) | (2) | (2) | (2) | (2) | (3) | (3) | (4) | (4) | ||||||||||||
| 2015 by quarter: | |||||||||||||||||||||
| 1st Quarter | $2.99 | $0.19 | $0.53 | $0.68 | $0.68 | $1.10 | $0.50 | $0.37 | $48.63 | $52.83 | |||||||||||
| 2nd Quarter | $2.65 | $0.18 | $0.46 | $0.59 | $0.60 | $1.26 | $0.42 | $0.29 | $57.94 | $62.97 | |||||||||||
| 3rd Quarter | $2.77 | $0.19 | $0.40 | $0.55 | $0.55 | $0.98 | $0.33 | $0.21 | $46.43 | $50.17 | |||||||||||
| 4th Quarter | $2.27 | $0.18 | $0.42 | $0.60 | $0.61 | $0.97 | $0.31 | $0.18 | $42.18 | $43.54 | |||||||||||
| YTD 2015 Averages | $2.67 | $0.18 | $0.45 | $0.61 | $0.61 | $1.08 | $0.39 | $0.26 | $48.80 | $52.38 | |||||||||||
| 2016 by quarter: | |||||||||||||||||||||
| 1st Quarter | $2.09 | $0.16 | $0.38 | $0.53 | $0.53 | $0.76 | $0.31 | $0.18 | $33.45 | $35.11 | |||||||||||
| 2nd Quarter | $1.95 | $0.20 | $0.49 | $0.62 | $0.63 | $0.96 | $0.33 | $0.19 | $45.59 | $47.35 | |||||||||||
| 3rd Quarter | $2.81 | $0.19 | $0.47 | $0.63 | $0.67 | $0.98 | $0.38 | $0.24 | $44.94 | $46.52 | |||||||||||
| 4th Quarter | $2.98 | $0.24 | $0.58 | $0.83 | $0.90 | $1.08 | $0.36 | $0.24 | $49.29 | $50.53 | |||||||||||
| YTD 2016 Averages | $2.46 | $0.20 | $0.48 | $0.65 | $0.68 | $0.94 | $0.34 | $0.21 | $43.32 | $44.88 | |||||||||||
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(1) |
Natural gas prices are based on Henry-Hub Inside FERC commercial index prices as reported by Platts, which is a division of McGraw Hill Financial, Inc. |
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(2) |
NGL prices for ethane, propane, normal butane, isobutane and natural gasoline are based on Mont Belvieu Non-TET commercial index prices as reported by Oil Price Information Service. |
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(3) |
Polymer-grade propylene prices represent average contract pricing for such product as reported by IHS Chemical, a division of IHS Inc. (“IHS Chemical”). Refinery grade propylene prices represent weighted-average spot prices for such products as reported by IHS Chemical. |
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(4) |
Crude oil prices are based on commercial index prices for West Texas Intermediate (“WTI”) as measured on the New York Mercantile Exchange (“NYMEX”) and for Louisiana Light Sweet (“LLS”) as reported by Platts. |
The weighted-average indicative market price for NGLs (based on prices for such products at
Fluctuations in our consolidated revenues and cost of sales amounts are explained in large part by changes in energy commodity prices. Energy commodity prices fluctuate for a variety of reasons, including supply and demand imbalances and geopolitical tensions.
A change in our consolidated marketing revenues due to lower energy commodity sales prices may not result in a similar change in gross operating margin or cash available for distribution, since our consolidated cost of sales amounts would also change due to comparable decreases in the purchase prices of the underlying energy commodities.
| Enterprise Products Partners L.P. |
Exhibit D |
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| Distributable Cash Flow – UNAUDITED | ||||||||||||||||||
| ($ in millions) | ||||||||||||||||||
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For the Three Months |
For the Year |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| Net income attributable to limited partners (GAAP) | $ | 658.8 | $ | 684.8 | $ | 2,513.1 | $ | 2,521.2 | ||||||||||
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Adjustments to GAAP net income attributable to limited partners to derive non-GAAP distributable cash flow: |
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Add depreciation, amortization and accretion expenses |
396.7 | 368.3 | 1,552.0 | 1,516.0 | ||||||||||||||
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Add distributions received from unconsolidated affiliates |
118.0 | 99.7 | 451.5 | 462.1 | ||||||||||||||
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Subtract equity in income of unconsolidated affiliates |
(92.2 | ) | (71.1 | ) | (362.0 | ) | (373.6 | ) | ||||||||||
| Subtract sustaining capital expenditures (1) | (72.6 | ) | (76.8 | ) | (252.0 | ) | (272.6 | ) | ||||||||||
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Add net losses or subtract net gains attributable to asset sales and insurance recoveries |
(0.2 | ) | 0.9 | (2.5 | ) | 15.6 | ||||||||||||
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Add cash proceeds from asset sales and insurance recoveries |
2.6 | 71.3 | 46.5 | 1,608.6 | ||||||||||||||
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Add non-cash expense or subtract benefit attributable to changes in fair value of the Liquidity Option Agreement |
(3.5 | ) | 9.6 | 24.5 | 25.4 | |||||||||||||
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Add non-cash expense or subtract benefit attributable to changes in fair value of derivative instruments |
2.9 | (10.7 | ) | 45.0 | (18.4 | ) | ||||||||||||
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Add monetization of derivative instruments |
6.1 | -- | 6.1 | -- | ||||||||||||||
| Add deferred income tax expense (benefit) | 1.3 | (7.3 | ) | 6.6 | (20.6 | ) | ||||||||||||
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Add non-cash asset impairment and related charges |
24.4 | 23.5 | 53.5 | 162.6 | ||||||||||||||
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Add or subtract other miscellaneous adjustments to derive non-GAAP distributable cash flow, as applicable |
(11.2 | ) | (3.4 | ) | 20.5 | (19.0 | ) | |||||||||||
| Distributable cash flow (non-GAAP) | 1,031.1 | 1,088.8 | 4,102.8 | 5,607.3 | ||||||||||||||
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Adjustments to non-GAAP distributable cash flow to derive GAAP net cash flow provided by operating activities: |
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Add sustaining capital expenditures reflected in distributable cash flow |
72.6 | 76.8 | 252.0 | 272.6 | ||||||||||||||
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Subtract cash proceeds from asset sales and insurance recoveries reflected in distributable cash flow |
(2.6 | ) | (71.3 | ) | (46.5 | ) | (1,608.6 | ) | ||||||||||
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Subtract monetization of derivative instruments |
(6.1 | ) | -- | (6.1 | ) | -- | ||||||||||||
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Add or subtract the net effect of changes in operating accounts, as applicable |
308.8 | 304.6 | (180.9 | ) | (323.3 | ) | ||||||||||||
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Add or subtract miscellaneous non-cash and other amounts to reconcile non-GAAP distributable cash flow with GAAP net cash flow provided by operating activities, as applicable |
4.0 | 12.3 | (54.5 | ) | 54.4 | |||||||||||||
| Net cash flow provided by operating activities (GAAP) | $ | 1,407.8 | $ | 1,411.2 | $ | 4,066.8 | $ | 4,002.4 | ||||||||||
| (1) | Sustaining capital expenditures are capital expenditures (as defined by GAAP) resulting from improvements to and major renewals of existing assets. Such expenditures serve to maintain existing operations but do not generate additional revenues. |
Distributable cash flow
Our management compares the distributable cash flow we generate to the cash distributions we expect to pay our partners. Using this metric, management computes our distribution coverage ratio. Distributable cash flow is an important non-GAAP liquidity measure for our limited partners since it serves as an indicator of our success in providing a cash return on investment. Specifically, this liquidity measure indicates to investors whether or not we are generating cash flows at a level that can sustain or support an increase in our quarterly cash distributions. Distributable cash flow is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is, in part, measured by its yield, which is based on the amount of cash distributions a partnership can pay to a unitholder. The GAAP measure most directly comparable to distributable cash flow is net cash flow provided by operating activities.
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Enterprise Products Partners L.P. |
Exhibit E |
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| Adjusted EBITDA – UNAUDITED | ||||||||||||||||||
| ($ in millions) | ||||||||||||||||||
|
For the Three Months |
For the Year |
|||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| Net income (GAAP) | $ | 669.7 | $ | 693.5 | $ | 2,553.0 | $ | 2,558.4 | ||||||||||
|
Adjustments to GAAP net income to derive non-GAAP Adjusted EBITDA: |
||||||||||||||||||
|
Subtract equity in income of unconsolidated affiliates |
(92.2 | ) | (71.1 | ) | (362.0 | ) | (373.6 | ) | ||||||||||
|
Add distributions received from unconsolidated affiliates |
118.0 | 99.7 | 451.5 | 462.1 | ||||||||||||||
|
Add interest expense, including related amortization |
247.0 | 238.6 | 982.6 | 961.8 | ||||||||||||||
|
Add provision for or subtract benefit from income taxes |
10.3 | (6.9 | ) | 23.4 | (2.5 | ) | ||||||||||||
|
Add depreciation, amortization and accretion in costs and expenses |
378.7 | 357.5 | 1,486.9 | 1,472.6 | ||||||||||||||
|
Add non-cash asset impairment and related charges |
24.4 | 23.5 | 53.5 | 162.6 | ||||||||||||||
|
Add non-cash net losses or subtract net gains attributable to asset sales and insurance recoveries |
(0.2 | ) | 1.4 | (2.5 | ) | 18.9 | ||||||||||||
|
Add non-cash expense or subtract benefit attributable to changes in fair value of the Liquidity Option Agreement |
(3.5 | ) | 9.6 | 24.5 | 25.4 | |||||||||||||
|
Add non-cash expense or subtract benefit attributable to changes in fair value of derivative instruments |
2.9 | (10.7 | ) | 45.0 | (18.4 | ) | ||||||||||||
| Adjusted EBITDA (non-GAAP) | 1,355.1 | 1,335.1 | 5,255.9 | 5,267.3 | ||||||||||||||
|
Adjustments to non-GAAP Adjusted EBITDA to derive GAAP net cash flow provided by operating activities: |
||||||||||||||||||
|
Subtract interest expense, including related amortization, reflected in Adjusted EBITDA |
(247.0 | ) | (238.6 | ) | (982.6 | ) | (961.8 | ) | ||||||||||
|
Subtract provision for or add benefit from income taxes reflected in Adjusted EBITDA |
(10.3 | ) | 6.9 | (23.4 | ) | 2.5 | ||||||||||||
|
Subtract distributions received for return of capital from unconsolidated affiliates |
(19.1 | ) | -- | (71.0 | ) | -- | ||||||||||||
|
Add deferred income tax expense or subtract benefit |
1.3 | (7.3 | ) | 6.6 | (20.6 | ) | ||||||||||||
|
Add or subtract the net effect of changes in operating accounts, as applicable |
308.8 | 304.6 | (180.9 | ) | (323.3 | ) | ||||||||||||
|
Add or subtract miscellaneous non-cash and other amounts to reconcile non-GAAP Adjusted EBITDA with GAAP net cash flows provided by operating activities |
19.0 | 10.5 | 62.2 | 38.3 | ||||||||||||||
| Net cash flow provided by operating activities (GAAP) | $ | 1,407.8 | $ | 1,411.2 | $ | 4,066.8 | $ | 4,002.4 | ||||||||||
Adjusted EBITDA
Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our financial statements, such as investors, commercial banks, research analysts and rating agencies, to assess the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; the ability of our assets to generate cash sufficient to pay interest and support our indebtedness; and the viability of projects and the overall rates of return on alternative investment opportunities.
Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measure most directly comparable to Adjusted EBITDA is net cash flow provided by operating activities.
|
Enterprise Products Partners L.P. |
Exhibit F | |||||||||||||||||
| Total Gross Operating Margin – UNAUDITED | ||||||||||||||||||
| ($ in millions) | ||||||||||||||||||
|
For the Three Months |
For the Year |
|||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| Total gross operating margin (non-GAAP) | $ | 1,357.3 | $ | 1,354.5 | $ | 5,247.8 | $ | 5,339.2 | ||||||||||
|
Adjustments to reconcile non-GAAP total gross operating margin to GAAP total operating income: |
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|
Subtract depreciation, amortization and accretion expense amounts not reflected in gross operating margin |
(371.1 | ) | (346.2 | ) | (1,456.7 | ) | (1,428.2 | ) | ||||||||||
|
Subtract non-cash asset impairment and related charges included in operating expenses not reflected in gross operating margin |
(24.1 | ) | (23.5 | ) | (52.8 | ) | (162.6 | ) | ||||||||||
|
Add net gains or subtract net losses attributable to asset sales and insurance recoveries not reflected in gross operating margin |
0.2 | (0.9 | ) | 2.5 | (15.6 | ) | ||||||||||||
|
Subtract general and administrative costs not reflected in gross operating margin |
(39.1 | ) | (49.4 | ) | (160.1 | ) | (192.6 | ) | ||||||||||
| Total operating income (GAAP) | $ | 923.2 | $ | 934.5 | $ | 3,580.7 | $ | 3,540.2 | ||||||||||
Total gross operating margin
We evaluate segment performance based on our financial measure of gross operating margin. Gross operating margin is an important performance measure of the core profitability of our operations and forms the basis of our internal financial reporting. We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results.
The term “total gross operating margin” represents GAAP operating income exclusive of (i) depreciation, amortization and accretion expenses, (ii) impairment charges, (iii) gains and losses attributable to asset sales, insurance recoveries and related property damage and (iv) general and administrative costs. Total gross operating margin includes equity in the earnings of unconsolidated affiliates, but is exclusive of other income and expense transactions, income taxes, the cumulative effect of changes in accounting principles and extraordinary charges. Total gross operating margin is presented on a 100 percent basis before any allocation of earnings to noncontrolling interests. The GAAP financial measure most directly comparable to total gross operating margin is operating income.
Total gross operating margin excludes amounts attributable to shipper make-up rights as described in footnote (4) to Exhibit A of this press release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170130005149/en/
Source:
Enterprise Products Partners L.P.
Randy Burkhalter, 713-381-6812
Vice President, Investor Relations
or
Rick Rainey, 713-381-3635
Vice President, Media Relations