RSS CONTENT
Enterprise Reports Results for Third Quarter 2020
Third Quarter 2020 Highlights |
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Three Months Ended
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($ in millions, except per unit amounts) |
2020 |
2019 |
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Operating income |
$ |
1,383 |
$ |
1,474 |
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Net income (1) |
$ |
1,084 |
$ |
1,045 |
|
Fully diluted earnings per unit (1) |
$ |
0.48 |
$ |
0.46 |
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Cash flow from operations (2) |
$ |
1,098 |
$ |
1,643 |
|
Total gross operating margin (3) |
$ |
1,993 |
$ |
2,036 |
|
Adjusted EBITDA (3) |
$ |
2,060 |
$ |
2,023 |
|
Free cash flow (2)(3) |
$ |
430 |
$ |
1,025 |
|
Distributable cash flow (3) |
$ |
1,647 |
$ |
1,640 |
(1) |
Net income and fully diluted earnings per unit for the third quarters of 2020 and 2019 included non-cash asset impairment and related charges of approximately |
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(2) |
Net cash flow provided by operating activities, or cash flow from operations (“CFFO”), and free cash flow (“FCF”) include the impact of the timing of cash receipts and payments related to operations as well as changes in working capital in connection with our marketing activities. The net effect of changes in operating accounts, which are a component of CFFO and FCF, was a decrease of |
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(3) |
Total gross operating margin, adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), FCF and distributable cash flow (“DCF”) are non-generally accepted accounting principle (“non-GAAP”) financial measures that are defined and reconciled later in this press release. |
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Gross operating margin, operating income and net income attributable to common unitholders for the third quarter of 2020 included
$38 million of non-cash, mark-to-market net losses on financial instruments used in our hedging activities, compared to$86 million of non-cash, mark-to-market net losses on such instruments for the third quarter of 2019. -
Enterprise declared a
$0.445 per common unit cash distribution with respect to the third quarter of 2020, which represents a 0.6 percent increase compared to the distribution paid for the third quarter of 2019. The cash distribution will be paidNovember 12, 2020 to common unitholders of record as of the close of business onOctober 30, 2020 . -
Enterprise reported DCF of
$1.6 billion for the third quarter of 2020, which provided 1.7 times coverage of the$0.445 per common unit cash distribution and resulted in$669 million of retained DCF. DCF for the first nine months of 2020 was$4.8 billion , which provided 1.6 times coverage of the aggregate$1.335 per common unit of cash distributions for that period and resulted in$1.8 billion of retained DCF. -
CFFO was
$1.1 billion for the third quarter of 2020, compared to$1.6 billion for the third quarter of 2019. The net effect of changes in operating accounts, including amounts used for working capital related to marketing activities, is responsible for substantially all of the decrease in CFFO between the two periods. FCF for the third quarter of 2020 and twelve months endedSeptember 30, 2020 was$430 million and$2.1 billion , respectively. The net effect of changes in operating accounts reduced FCF by$603 million and$740 million for the third quarter of 2020 and twelve months endedSeptember 30, 2020 , respectively. -
Total capital investments, including sustaining capital, were
$705 million in the third quarter of 2020 and$2.7 billion for the first nine months of 2020. Included in these investments were sustaining capital expenditures of$83 million in the third quarter of 2020 and$226 million in the first nine months of 2020.
Third Quarter 2020 Volume Highlights |
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Three Months Ended
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2020 |
2019 |
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NGL, crude oil, refined products & petrochemical pipeline volumes (million BPD) |
6.0 |
6.6 |
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Marine terminal volumes (million BPD) |
1.5 |
1.9 |
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Natural gas pipeline volumes (TBtus/d) |
13.1 |
14.5 |
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NGL fractionation volumes (million BPD) |
1.4 |
1.0 |
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Propylene plant production volumes (MBPD) |
83 |
105 |
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Fee-based natural gas processing volumes (Bcf/d) |
4.1 |
4.7 |
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Equity NGL production volumes (MBPD) |
141 |
111 |
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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, “MMcf/d” means million cubic feet per day, “Bcf/d” means billion cubic feet per day, “BBtus/d” means billion British thermal units per day and “TBtus/d” means trillion British thermal units per day.
“Enterprise’s integrated and diversified midstream energy system generated solid operational and financial results despite another challenging quarter for the
“In comparing the third quarter of 2020 to the third quarter of last year, we generated approximately
“During the third quarter of 2020, our commercial team responded to customer requests and changing industry dynamics to amend certain agreements that enabled us to increase volumetric commitments over the long-term by utilizing existing pipeline capacity and to cancel the
“The global economy is in the early stages of reopening from a self-imposed sudden stop due to COVID-19. The pace of the recovery varies country by country, community by community and business by business. The current resurgence of the pandemic may temporarily affect this progress in some regions. The development of vaccines and therapeutic treatments are progressing rapidly. Even though the pace of the pandemic and the economic recovery is still very uncertain, the economic recovery is leading to a remarkable rebound in the demand for energy and energy products from the lows of the second quarter of 2020. Additionally, with the world still adding a billion people every 12 years (the world population is currently 7.8 billion and counting) and populations in developing countries wanting access to cleaner and more convenient sources of energy, we believe demand for reliable
“This recovery in demand will also ultimately result in a price signal for crude oil. Given the combination of the record retrenchment in drilling and completion activities by
Review of Third Quarter 2020 Results
Enterprise reported total gross operating margin of
NGL Pipelines & Services – Gross operating margin from the NGL Pipelines & Services segment was
Enterprise’s natural gas processing and related NGL marketing business reported gross operating margin of
Gross operating margin from NGL marketing activities increased
Gross operating margin from the partnership’s NGL pipelines and storage business for the third quarter of 2020 was
The partnership’s Western NGL pipelines that serve the Permian,
Gross operating margin from the
Gross operating margin for the third quarter of 2020 attributable to the Dixie, South Louisiana NGL and Lou-Tex NGL pipelines decreased by a combined
Enterprise’s NGL fractionation business reported gross operating margin of
Crude Oil Pipelines & Services – Gross operating margin from the Crude Oil Pipelines & Services segment was
Gross operating margin from Enterprise’s
Gross operating margin from the South Texas Crude Oil Pipeline System was down
Gross operating margin from crude oil export activities at EHT on the Houston Ship Channel decreased
Gross operating margin from other crude oil marketing activities increased
Natural Gas Pipelines & Services – Gross operating margin from the Natural Gas Pipelines & Services segment was
Gross operating margin from Enterprise’s natural gas marketing business decreased
Gross operating margin from the Acadian Gas System for the third quarter of 2020 decreased
Enterprise’s Permian Basin Gathering System reported a
Gross operating margin from the partnership’s largest natural gas pipeline, the Texas Intrastate System decreased
Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment increased 9 percent to
The partnership’s propylene production and related businesses reported gross operating margin of
Enterprise’s refined products pipeline and related activities reported a
Gross operating margin from ethylene exports, pipelines, and related services increased
Gross operating margin from Enterprise’s octane enhancement and related operations for the third quarter of 2020 decreased
Capitalization
Total debt principal outstanding at
Total capital investments for the third quarter of 2020 were
Conference Call to Discuss Third Quarter 2020 Earnings
Today, Enterprise will host a conference call to discuss third quarter 2020 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, FCF, DCF 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, direct and indirect effects of the COVID-19 pandemic, insufficient cash from operations, adverse market conditions, governmental regulations and other factors discussed in Enterprise’s filings with the
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Exhibit A |
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Condensed Statements of Consolidated Operations – UNAUDITED |
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($ in millions, except per unit amounts) |
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For the Three Months
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For the Nine Months
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For the Twelve
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2020 |
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2019 |
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2020 |
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2019 |
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2020 |
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Revenues |
$ |
6,922.0 |
|
$ |
7,964.1 |
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$ |
20,155.5 |
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$ |
24,783.9 |
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$ |
28,160.8 |
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Costs and expenses: |
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Operating costs and expenses |
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5,571.2 |
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6,573.7 |
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16,001.9 |
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20,394.3 |
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22,669.4 |
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General and administrative costs |
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50.3 |
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55.5 |
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162.8 |
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160.2 |
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214.3 |
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Total costs and expenses |
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5,621.5 |
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6,629.2 |
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16,164.7 |
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20,554.5 |
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22,883.7 |
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Equity in income of unconsolidated affiliates |
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82.0 |
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139.3 |
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336.1 |
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431.3 |
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467.8 |
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Operating income |
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1,382.5 |
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1,474.2 |
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4,326.9 |
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4,660.7 |
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5,744.9 |
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Other income (expense): |
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Interest expense |
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(320.5 |
) |
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(382.9 |
) |
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(958.2 |
) |
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(950.2 |
) |
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(1,251.0 |
) |
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Other, net |
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2.9 |
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(31.1 |
) |
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12.5 |
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(111.4 |
) |
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20.9 |
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Total other expense |
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(317.6 |
) |
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(414.0 |
) |
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(945.7 |
) |
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(1,061.6 |
) |
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(1,230.1 |
) |
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Income before income taxes |
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1,064.9 |
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1,060.2 |
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3,381.2 |
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3,599.1 |
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4,514.8 |
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Benefit from (provision for) income taxes |
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19.1 |
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(15.4 |
) |
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138.6 |
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(37.4 |
) |
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130.4 |
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Net income |
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1,084.0 |
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1,044.8 |
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3,519.8 |
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3,561.7 |
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4,645.2 |
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Net income attributable to noncontrolling interests |
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(31.4 |
) |
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(25.6 |
) |
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(82.4 |
) |
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(67.3 |
) |
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(110.9 |
) |
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Net income attributable to preferred units |
* |
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– |
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* |
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– |
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* |
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Net income attributable to common unitholders |
$ |
1,052.6 |
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$ |
1,019.2 |
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$ |
3,437.4 |
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$ |
3,494.4 |
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$ |
4,534.3 |
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* Amount is negligible |
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Per unit data (fully diluted): |
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Earnings per unit |
$ |
0.48 |
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$ |
0.46 |
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$ |
1.56 |
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$ |
1.59 |
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$ |
2.06 |
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Average limited partner units outstanding (in millions) |
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2,201.4 |
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2,202.3 |
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2,202.4 |
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2,201.5 |
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2,202.3 |
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Supplemental financial data: |
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Net cash flow provided by operating activities |
$ |
1,097.8 |
|
$ |
1,642.5 |
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$ |
4,291.6 |
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$ |
4,826.2 |
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$ |
5,985.9 |
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Cash flows used in investing activities |
$ |
633.7 |
|
$ |
1,086.3 |
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$ |
2,564.2 |
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$ |
3,372.8 |
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$ |
3,766.9 |
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Cash flows provided by (used in) financing activities |
$ |
(769.6 |
) |
$ |
544.3 |
|
$ |
(1,006.3 |
) |
$ |
(655.7 |
) |
$ |
(2,295.7 |
) |
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Total debt principal outstanding at end of period |
$ |
30,146.4 |
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$ |
28,196.4 |
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$ |
30,146.4 |
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$ |
28,196.4 |
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$ |
30,146.4 |
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Non-GAAP Distributable Cash Flow (1) |
$ |
1,647.0 |
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$ |
1,639.5 |
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$ |
4,777.9 |
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$ |
4,990.3 |
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$ |
6,411.5 |
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Non-GAAP Adjusted EBITDA (2) |
$ |
2,060.2 |
|
$ |
2,023.1 |
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$ |
6,000.1 |
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$ |
6,097.9 |
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$ |
8,019.5 |
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Non-GAAP Free Cash Flow (3) |
$ |
429.6 |
|
$ |
1,024.6 |
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$ |
1,650.8 |
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$ |
1,974.5 |
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$ |
2,147.9 |
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Gross operating margin by segment: |
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NGL Pipelines & Services |
$ |
1,028.1 |
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$ |
1,008.3 |
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$ |
3,038.2 |
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$ |
2,933.8 |
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$ |
4,174.2 |
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Crude Oil Pipelines & Services |
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481.8 |
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496.2 |
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1,569.1 |
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1,671.7 |
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1,985.2 |
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Natural Gas Pipelines & Services |
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208.4 |
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258.5 |
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701.1 |
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824.6 |
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939.1 |
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Petrochemical & Refined Products Services |
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315.0 |
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288.4 |
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785.0 |
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835.9 |
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1,018.7 |
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Total segment gross operating margin (4) |
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2,033.3 |
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2,051.4 |
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6,093.4 |
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6,266.0 |
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8,117.2 |
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Net adjustment for shipper make-up rights (5) |
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(39.9 |
) |
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(15.3 |
) |
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(54.1 |
) |
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(15.7 |
) |
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(62.5 |
) |
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Non-GAAP total gross operating margin (6) |
$ |
1,993.4 |
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$ |
2,036.1 |
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$ |
6,039.3 |
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$ |
6,250.3 |
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$ |
8,054.7 |
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(1) |
See Exhibit E for reconciliation to GAAP net cash flow provided by operating activities. |
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(2) |
See Exhibit F for reconciliation to GAAP net cash flow provided by operating activities. |
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(3) |
See Exhibit D for reconciliation to GAAP net cash flow provided by operating activities. |
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(4) |
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 |
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(5) |
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 managements’ evaluation of segment results. However, these adjustments are excluded from non-GAAP total gross operating margin in compliance with guidance from the |
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(6) |
See Exhibit G for reconciliation to GAAP total operating income. |
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Exhibit B |
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Selected Operating Data – UNAUDITED |
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For the Three Months
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For the Nine Months
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For the Twelve
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2020 |
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2019 |
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2020 |
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2019 |
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2020 |
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Selected operating data: (1) |
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NGL Pipelines & Services, net: |
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NGL pipeline transportation volumes (MBPD) |
3,446 |
3,557 |
3,563 |
3,532 |
3,641 |
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NGL marine terminal volumes (MBPD) |
643 |
602 |
696 |
590 |
704 |
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NGL fractionation volumes (MBPD) |
1,350 |
1,003 |
1,357 |
990 |
1,373 |
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Equity NGL production volumes (MBPD) (2) |
141 |
111 |
156 |
138 |
157 |
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Fee-based natural gas processing volumes (MMcf/d) (3,4) |
4,105 |
4,724 |
4,299 |
4,729 |
4,415 |
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Crude Oil Pipelines & Services, net: |
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Crude oil pipeline transportation volumes (MBPD) |
1,739 |
2,321 |
2,008 |
2,315 |
2,072 |
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Crude oil marine terminal volumes (MBPD) |
662 |
987 |
790 |
972 |
825 |
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Natural Gas Pipelines & Services, net: |
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Natural gas pipeline transportation volumes (BBtus/d) (5) |
13,131 |
14,474 |
13,322 |
14,341 |
13,438 |
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Petrochemical & Refined Products Services, net: |
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Propylene production volumes (MBPD) |
83 |
105 |
84 |
99 |
86 |
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Butane isomerization volumes (MBPD) |
102 |
109 |
92 |
110 |
96 |
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Standalone DIB processing volumes (MBPD) |
120 |
103 |
119 |
97 |
115 |
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Octane enhancement and related plant sales volumes (MBPD) (6) |
35 |
33 |
34 |
33 |
34 |
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Pipeline transportation volumes, primarily refined products and petrochemicals (MBPD) |
844 |
747 |
780 |
742 |
770 |
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Refined products and petrochemicals marine terminal volumes (MBPD) (7) |
226 |
297 |
249 |
344 |
249 |
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Total, net: |
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NGL, crude oil, petrochemical and refined products pipeline transportation volumes (MBPD) |
6,029 |
6,625 |
6,351 |
6,589 |
6,483 |
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Natural gas pipeline transportation volumes (BBtus/d) |
13,131 |
14,474 |
13,322 |
14,341 |
13,438 |
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Equivalent pipeline transportation volumes (MBPD) (8) |
9,485 |
10,434 |
9,857 |
10,363 |
10,019 |
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NGL, crude oil, refined products and petrochemical marine terminal volumes (MBPD) |
1,531 |
1,886 |
1,735 |
1,906 |
1,778 |
(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) |
Fee-based natural gas processing volumes are measured at either the wellhead or plant inlet in MMcf/d. |
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(5) |
“BBtus/d” means billion British thermal units per day. |
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(6) |
Reflects aggregate sales volumes for our octane additive and iBDH facilities located at our |
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(7) |
In addition to exports of refined products, these amounts include loading volumes at our ethylene export terminal |
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(8) |
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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Exhibit C |
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Selected Commodity Price Information – UNAUDITED |
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Polymer |
Refinery |
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Natural |
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Normal |
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Natural |
Grade |
Grade |
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Gas, |
Ethane, |
Propane, |
Butane, |
Isobutane, |
Gasoline, |
Propylene, |
Propylene, |
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$/MMBtu (1) |
$/gallon (2) |
$/gallon (2) |
$/gallon (2) |
$/gallon (2) |
$/gallon (2) |
$/pound (3) |
$/pound (3) |
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2019 by quarter: |
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First Quarter |
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Second Quarter |
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Third Quarter |
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Fourth Quarter |
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2019 Averages |
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2020 by quarter: |
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First Quarter |
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Second Quarter |
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Third Quarter |
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2020 Averages |
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(1) |
Natural gas prices are based on Henry-Hub Inside FERC commercial index prices as reported by Platts, which is a division of |
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(2) |
NGL prices for ethane, propane, normal butane, isobutane and natural gasoline are based on Mont Belvieu Non-TET commercial index prices as reported by |
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(3) |
Polymer grade propylene prices represent average contract pricing for such product as reported by IHS Chemical, a division of |
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WTI |
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LLS |
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Crude Oil, |
Crude Oil, |
Crude Oil |
Crude Oil, |
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$/barrel (1) |
$/barrel (2) |
$/barrel (2) |
$/barrel (3) |
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2019 by quarter: |
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First Quarter |
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|
|
|
||||
Second Quarter |
|
|
|
|
||||
Third Quarter |
|
|
|
|
||||
Fourth Quarter |
|
|
|
|
||||
2019 Averages |
|
|
|
|
||||
|
|
|
|
|
||||
2020 by quarter: |
|
|
|
|
||||
First Quarter |
|
|
|
|
||||
Second Quarter |
|
|
|
|
||||
Third Quarter |
|
|
|
|
||||
2020 Averages |
|
|
|
|
(1) |
West Texas Intermediate (“WTI”) prices are based on commercial index prices at |
|
(2) |
|
|
(3) |
Light Louisiana Sweet (“LLS”) prices are based on commercial index prices as reported by Platts. |
The weighted-average indicative market price for NGLs (based on prices for such products at
The decline in commodity prices since the beginning of 2020 is attributable to the ongoing effects of the COVID-19 pandemic.
|
|
Exhibit D |
||||||||||||||
Free Cash Flow – UNAUDITED |
||||||||||||||||
($ in millions) |
|
|
|
|
||||||||||||
|
For the Three Months
Ended |
For the Nine Months
Ended |
||||||||||||||
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
Free Cash Flow (“FCF”) |
|
|
|
|
||||||||||||
Net cash flow provided by operating activities (GAAP) |
$ |
1,097.8 |
|
$ |
1,642.5 |
|
$ |
4,291.6 |
|
$ |
4,826.2 |
|
||||
Adjustments to reconcile net cash flow provided by operating activities to FCF (addition or subtraction indicated by sign): |
|
|
|
|
||||||||||||
Cash used in investing activities |
|
(633.7 |
) |
|
(1,086.3 |
) |
|
(2,564.2 |
) |
|
(3,372.8 |
) |
||||
Cash contributions from noncontrolling interests |
|
1.5 |
|
|
491.2 |
|
|
21.2 |
|
|
590.8 |
|
||||
Cash distributions paid to noncontrolling interests |
|
(36.0 |
) |
|
(22.8 |
) |
|
(97.8 |
) |
|
(69.7 |
) |
||||
FCF (non-GAAP) |
$ |
429.6 |
|
$ |
1,024.6 |
|
$ |
1,650.8 |
|
$ |
1,974.5 |
|
||||
|
|
|
|
|
||||||||||||
|
For the Twelve Months
Ended |
|
|
|||||||||||||
|
|
2020 |
|
|
|
2019 |
|
|
|
|||||||
Net cash flow provided by operating activities (GAAP) |
$ |
5,985.9 |
|
$ |
6,677.2 |
|
|
|
||||||||
Adjustments to reconcile net cash flow provided by operating activities to FCF (addition or subtraction indicated by sign): |
|
|
|
|
||||||||||||
Cash used in investing activities |
|
(3,766.9 |
) |
|
(4,471.6 |
) |
|
|
||||||||
Cash contributions from noncontrolling interests |
|
63.2 |
|
|
606.9 |
|
|
|
||||||||
Cash distributions paid to noncontrolling interests |
|
(134.3 |
) |
|
(100.4 |
) |
|
|
||||||||
FCF (non-GAAP) |
$ |
2,147.9 |
|
$ |
2,712.1 |
|
|
|
FCF is a measure of how much cash a business generates after accounting for capital expenditures such as plants or pipelines. We believe that FCF is important to traditional investors since it reflects the amount of cash available for reducing debt, investing in additional capital projects and/or paying distributions. Since we partner with other companies to fund certain capital projects of our consolidated subsidiaries, our determination of FCF appropriately reflects the amount of cash contributed from and distributed to noncontrolling interests.
|
Exhibit E |
|||||||||||||||||||
Distributable Cash Flow – UNAUDITED |
||||||||||||||||||||
($ in millions) |
|
|
For the Twelve
|
|||||||||||||||||
|
For the Three Months
Ended |
For the Nine Months
Ended |
||||||||||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|||||
Distributable Cash Flow (“DCF”) |
|
|
|
|
|
|||||||||||||||
Net income attributable to common unitholders (GAAP) |
$ |
1,052.6 |
|
$ |
1,019.2 |
|
$ |
3,437.4 |
|
$ |
3,494.4 |
|
$ |
4,534.3 |
|
|||||
Adjustments to net income attributable to common unitholders to derive DCF (addition or subtraction indicated by sign): |
|
|
|
|
|
|||||||||||||||
Depreciation, amortization and accretion expenses |
|
513.4 |
|
|
493.6 |
|
|
1,545.1 |
|
|
1,456.7 |
|
|
2,037.7 |
|
|||||
Cash distributions received from unconsolidated affiliates |
|
146.7 |
|
|
170.6 |
|
|
462.3 |
|
|
485.1 |
|
|
608.5 |
|
|||||
Equity in income of unconsolidated affiliates |
|
(82.0 |
) |
|
(139.3 |
) |
|
(336.1 |
) |
|
(431.3 |
) |
|
(467.8 |
) |
|||||
Asset impairment and related charges |
|
77.0 |
|
|
39.5 |
|
|
90.4 |
|
|
51.3 |
|
|
171.9 |
|
|||||
Change in fair market value of derivative instruments |
|
37.7 |
|
|
85.8 |
|
|
(53.7 |
) |
|
2.0 |
|
|
(28.5 |
) |
|||||
Change in fair value of Liquidity Option Agreement |
|
– |
|
|
38.7 |
|
|
2.3 |
|
|
123.1 |
|
|
(1.2 |
) |
|||||
Deferred income tax expense (benefit) |
|
(18.3 |
) |
|
6.7 |
|
|
(149.0 |
) |
|
10.9 |
|
|
(139.9 |
) |
|||||
Sustaining capital expenditures (1) |
|
(83.1 |
) |
|
(90.8 |
) |
|
(226.0 |
) |
|
(232.5 |
) |
|
(318.7 |
) |
|||||
Other, net |
|
(1.3 |
) |
|
14.8 |
|
|
30.1 |
|
|
13.8 |
|
|
36.3 |
|
|||||
Operational DCF |
|
1,642.7 |
|
|
1,638.8 |
|
|
4,802.8 |
|
|
4,973.5 |
|
|
6,432.6 |
|
|||||
Proceeds from asset sales |
|
4.3 |
|
|
0.7 |
|
|
8.4 |
|
|
16.8 |
|
|
12.2 |
|
|||||
Monetization of interest rate derivative instruments accounted for as cash flow hedges |
|
– |
|
|
– |
|
|
(33.3 |
) |
|
– |
|
|
(33.3 |
) |
|||||
DCF (non-GAAP) |
|
1,647.0 |
|
|
1,639.5 |
|
|
4,777.9 |
|
|
4,990.3 |
|
|
6,411.5 |
|
|||||
Adjustments to reconcile DCF with net cash flow provided by operating activities (addition or subtraction indicated by sign): |
|
|
|
|
|
|||||||||||||||
Net effect of changes in operating accounts, as applicable |
|
(603.0 |
) |
|
(77.0 |
) |
|
(692.0 |
) |
|
(409.0 |
) |
|
(740.4 |
) |
|||||
Sustaining capital expenditures |
|
83.1 |
|
|
90.8 |
|
|
226.0 |
|
|
232.5 |
|
|
318.7 |
|
|||||
Other, net |
|
(29.3 |
) |
|
(10.8 |
) |
|
(20.3 |
) |
|
12.4 |
|
|
(3.9 |
) |
|||||
Net cash flow provided by operating activities (GAAP) |
$ |
1,097.8 |
|
$ |
1,642.5 |
|
$ |
4,291.6 |
|
$ |
4,826.2 |
|
$ |
5,985.9 |
|
(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. |
DCF is an important non-GAAP liquidity measure for our common unitholders 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. DCF 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 common unitholder.
|
|
|
|
Exhibit F |
||||||||||||||||
Adjusted EBITDA - UNAUDITED |
||||||||||||||||||||
($ in millions) |
|
|
|
For the Twelve
|
||||||||||||||||
|
For the Three Months
Ended |
For the Nine Months
Ended |
||||||||||||||||||
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
Net income (GAAP) |
$ |
1,084.0 |
|
$ |
1,044.8 |
|
$ |
3,519.8 |
|
$ |
3,561.7 |
|
$ |
4,645.2 |
|
|||||
Adjustments to net income to derive Adjusted EBITDA (addition or subtraction indicated by sign): |
|
|
|
|
|
|||||||||||||||
Depreciation, amortization and accretion in costs and expenses |
|
496.0 |
|
|
479.7 |
|
|
1,497.6 |
|
|
1,415.9 |
|
|
1,976.0 |
|
|||||
Interest expense, including related amortization |
|
320.5 |
|
|
382.9 |
|
|
958.2 |
|
|
950.2 |
|
|
1,251.0 |
|
|||||
Cash distributions received from unconsolidated affiliates |
|
146.7 |
|
|
170.6 |
|
|
462.3 |
|
|
485.1 |
|
|
608.5 |
|
|||||
Equity in income of unconsolidated affiliates |
|
(82.0 |
) |
|
(139.3 |
) |
|
(336.1 |
) |
|
(431.3 |
) |
|
(467.8 |
) |
|||||
Asset impairment and related charges |
|
77.0 |
|
|
39.5 |
|
|
90.4 |
|
|
51.3 |
|
|
171.9 |
|
|||||
Provision for (benefit from) income taxes |
|
(19.1 |
) |
|
15.4 |
|
|
(138.6 |
) |
|
37.4 |
|
|
(130.4 |
) |
|||||
Change in fair market value of commodity derivative instruments |
|
37.7 |
|
|
(9.1 |
) |
|
(53.7 |
) |
|
(92.9 |
) |
|
(28.5 |
) |
|||||
Change in fair value of Liquidity Option Agreement |
|
– |
|
|
38.7 |
|
|
2.3 |
|
|
123.1 |
|
|
(1.2 |
) |
|||||
Other, net |
|
(0.6 |
) |
|
(0.1 |
) |
|
(2.1 |
) |
|
(2.6 |
) |
|
(5.2 |
) |
|||||
Adjusted EBITDA (non-GAAP) |
|
2,060.2 |
|
|
2,023.1 |
|
|
6,000.1 |
|
|
6,097.9 |
|
|
8,019.5 |
|
|||||
Adjustments to reconcile Adjusted EBITDA to net cash flow provided by operating activities (addition or subtraction indicated by sign): |
|
|
|
|
|
|||||||||||||||
Interest expense, including related amortization |
|
(320.5 |
) |
|
(382.9 |
) |
|
(958.2 |
) |
|
(950.2 |
) |
|
(1,251.0 |
) |
|||||
Deferred income tax expense (benefit) |
|
(18.3 |
) |
|
6.7 |
|
|
(149.0 |
) |
|
10.9 |
|
|
(139.9 |
) |
|||||
Net effect of changes in operating accounts, as applicable |
|
(603.0 |
) |
|
(77.0 |
) |
|
(692.0 |
) |
|
(409.0 |
) |
|
(740.4 |
) |
|||||
Other, net |
|
(20.6 |
) |
|
72.6 |
|
|
90.7 |
|
|
76.6 |
|
|
97.7 |
|
|||||
Net cash flow provided by operating activities (GAAP) |
$ |
1,097.8 |
|
$ |
1,642.5 |
|
$ |
4,291.6 |
|
$ |
4,826.2 |
|
$ |
5,985.9 |
|
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.
|
|
|
|
Exhibit G |
||||||||||||||||
Gross Operating Margin – UNAUDITED |
||||||||||||||||||||
($ in millions) |
|
|
|
For the Twelve
|
||||||||||||||||
|
For the Three Months
|
For the Nine Months
|
||||||||||||||||||
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
Total gross operating margin (non-GAAP) |
$ |
1,993.4 |
|
$ |
2,036.1 |
|
$ |
6,039.3 |
|
$ |
6,250.3 |
|
$ |
8,054.7 |
|
|||||
Adjustments to reconcile total gross operating margin to total operating income (addition or subtraction indicated by sign): |
|
|
|
|
|
|||||||||||||||
Depreciation, amortization and accretion expense in operating costs and expenses |
|
(484.2 |
) |
|
(467.1 |
) |
|
(1,461.3 |
) |
|
(1,380.8 |
) |
|
(1,928.8 |
) |
|||||
Asset impairment and related charges in operating costs and expenses |
|
(77.0 |
) |
|
(39.4 |
) |
|
(90.4 |
) |
|
(51.2 |
) |
|
(171.9 |
) |
|||||
Net gains attributable to asset sales in operating costs and expenses |
|
0.6 |
|
|
0.1 |
|
|
2.1 |
|
|
2.6 |
|
|
5.2 |
|
|||||
General and administrative costs |
|
(50.3 |
) |
|
(55.5 |
) |
|
(162.8 |
) |
|
(160.2 |
) |
|
(214.3 |
) |
|||||
Total operating income (GAAP) |
$ |
1,382.5 |
|
$ |
1,474.2 |
|
$ |
4,326.9 |
|
$ |
4,660.7 |
|
$ |
5,744.9 |
|
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, 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 (5) to Exhibit A of this press release.
|
|
|
|
Exhibit H |
|||||||||||
Capital Investments – UNAUDITED |
|||||||||||||||
($ in millions) |
|
|
|
For the Twelve
|
|||||||||||
|
For the Three Months
Ended |
For the Nine Months
Ended |
|||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
||||||
Capital investments: |
|
|
|
|
|
||||||||||
Capital expenditures |
$ |
695.7 |
$ |
1,041.3 |
$ |
2,671.6 |
$ |
3,302.1 |
$ |
3,901.2 |
|||||
Investments in unconsolidated affiliates |
|
2.6 |
|
40.2 |
|
9.9 |
|
100.1 |
|
21.4 |
|||||
Other investing activities |
|
6.5 |
|
6.0 |
|
19.0 |
|
11.3 |
|
23.8 |
|||||
Total capital investments |
$ |
704.8 |
$ |
1,087.5 |
$ |
2,700.5 |
$ |
3,413.5 |
$ |
3,946.4 |
The following table summarizes the non-cash mark-to-market gains (losses) for the periods indicated:
|
For the Three Months
Ended |
|
For the Nine Months
Ended |
|||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||
Mark-to-market gains (losses) in gross operating margin: |
|
|
|
|
|
|
|
|
|
|
|
|
NGL Pipelines & Services |
$ |
(12.0) |
|
$ |
(0.7) |
|
$ |
11.4 |
|
$ |
(0.1) |
|
Crude Oil Pipelines & Services |
|
10.1 |
|
|
9.8 |
|
|
28.9 |
|
|
95.0 |
|
Natural Gas Pipelines & Services |
|
(14.8) |
|
|
1.3 |
|
|
10.0 |
|
|
1.3 |
|
Petrochemical & Refined Products Services |
|
(21.0) |
|
|
(1.3) |
|
|
3.4 |
|
|
(3.3) |
|
Total mark-to-market impact on gross operating margin |
|
(37.7) |
|
|
9.1 |
|
|
53.7 |
|
|
92.9 |
|
Mark-to-market loss in interest expense |
|
– |
|
|
(94.9) |
|
|
– |
|
|
(94.9) |
|
Total |
$ |
(37.7) |
|
$ |
(85.8) |
|
$ |
53.7 |
|
$ |
(2.0) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201028005557/en/
Source: