DCP Midstream, LP Reports Fourth Quarter and Full-Year 2016 Results
FOURTH QUARTER AND YEAR END 2016 SUMMARY RESULTS | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
December 31, | December 31, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(Unaudited) | ||||||||||||
(Millions, except per unit amounts) | ||||||||||||
Net income attributable to partners | $ | 75 | $ | 90 | $ | 312 | $ | 228 | ||||
Net income per limited partner unit - basic and diluted | $ | 0.38 | $ | 0.51 | $ | 1.64 | $ | 0.91 | ||||
Adjusted EBITDA(1) | $ | 151 | $ | 176 | $ | 594 | $ | 656 | ||||
Distributable cash flow(1) | $ | 120 | $ | 145 | $ | 537 | $ | 572 | ||||
(1) This press release includes the following non-GAAP financial measures: adjusted EBITDA, distributable cash flow, adjusted segment EBITDA, forecasted adjusted EBITDA and forecasted distributable cash flow. Each of these denotes a financial measure not presented in accordance with U.S. generally accepted accounting principles, or GAAP. Each such non-GAAP financial measure is defined below under “Non-GAAP Financial Information”, and each is reconciled to its most directly comparable GAAP financial measures under “Reconciliation of Non-GAAP Financial Measures” in schedules at the end of this press release.
RECENT HIGHLIGHTS
- Net income attributable to partners was
$75 million in the fourth quarter of 2016, or$0.38 per basic and diluted limited partner unit and$312 million for the year ended December 31, 2016, or$1.64 per basic and diluted limited partner unit. - 2016 financial results exceeded both the 2016 distributable cash flow target range of
$515 million to $525 million and the 2016 adjusted EBITDA target range of$575 million to $585 million . - Distributable cash flow was
$120 million in the fourth quarter of 2016, and$537 million for the full year 2016 resulting in a distribution coverage ratio of 1.0 times in the fourth quarter of 2016 and 1.11 times for the year endedDecember 31, 2016 . - Adjusted EBITDA was
$151 million in the fourth quarter of 2016 and$594 million for the year endedDecember 31, 2016 . - On
January 1, 2017 , the Partnership closed a transaction combining the assets and debt ofDCP Midstream, LLC (Midstream) with the Partnership (Transaction), creating the largest NGL producer and gas processor in the U.S. with an enterprise value of approximately$11 billion . The combined company was renamedDCP Midstream, LP and onJanuary 23, 2017 , theNew York Stock Exchange stock ticker symbol was changed to “DCP”. - On
January 4, 2017 , the Partnership announced the following growth projects:
- Construction of a new 200 million cubic feet per day (MMcf/d) plant in theDJ Basin , to be named Mewbourn 3, and additional compression and gathering infrastructure in theDJ Basin for$395 million , expected to be in service by the end of 2018.
- Additional field compression and plant bypass infrastructure in theDJ Basin that will add approximately 40 MMcf/d of incremental capacity, expected to be in service during the summer of 2017.
- A 365,000 barrels per day (BPD) NGL capacity expansion project on Sand Hills Pipeline to meet NGL production growth from owned and third party plants in the Permian andDelaware basins, and potential growth from ethane recovery, expected to be completed in the fourth quarter of 2017. - The Partnership updated its 2017 forecasted adjusted EBITDA target range to between
$940 to $1,110 million to include distributions in excess of earnings from unconsolidated affiliates.
“We delivered on our 2016 commitments and finished the year strong with adjusted EBITDA and distributable cash flow coming in above our 2016 target ranges, resulting in solid distribution coverage of 1.11 times for the year," said
DISTRIBUTION AND DISTRIBUTABLE CASH FLOW
On January 26, 2017, the Partnership announced a quarterly distribution of
The Partnership's distributable cash flow of
FOURTH QUARTER 2016 OPERATING RESULTS BY BUSINESS SEGMENT
Natural Gas Services Segment net income attributable to partners for the three months ended
Adjusted segment EBITDA decreased to
NGL Logistics
NGL Logistics Segment net income attributable to partners for the three months ended
Adjusted segment EBITDA decreased to
Wholesale Propane Logistics
Wholesale Propane Logistics Segment net income attributable to partners was
Adjusted segment EBITDA decreased to
Corporate and Other
Interest expense for the three months ended
CAPITALIZATION, LIQUIDITY AND FINANCING
At December 31, 2016 and prior to the Transaction, the Partnership had
As part of the Transaction, Midstream contributed its ownership interests in all of its subsidiaries owning operating assets, and
CAPITAL EXPENDITURES AND INVESTMENTS
During the three months ended
COMMODITY DERIVATIVE ACTIVITY
For the three and twelve months ended December 31, 2016, commodity derivative activity and total revenues included non-cash losses of
The objective of the Partnership's commodity risk management program is to protect downside risk in its distributable cash flow. The Partnership utilizes mark-to-market accounting treatment for its commodity derivative instruments. Mark-to-market accounting rules require companies to record currently in earnings the difference between their contracted future derivative settlement prices and the forward prices of the underlying commodities at the end of the accounting period. Revaluing the Partnership's commodity derivative instruments based on futures pricing at the end of the period creates assets or liabilities and associated non-cash gains or losses. Realized gains or losses from cash settlement of the derivative contracts occur monthly as the Partnership's physical commodity sales are realized or when the Partnership rebalances its portfolio. Non-cash gains or losses associated with the mark-to-market accounting treatment of the Partnership's commodity derivative instruments do not affect its distributable cash flow.
EARNINGS CALL
The Partnership will host a conference call webcast at
NON-GAAP FINANCIAL INFORMATION
This press release and the accompanying financial schedules include the following non-GAAP financial measures: adjusted EBITDA, adjusted segment EBITDA and distributable cash flow. The accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures. The Partnership's non-GAAP financial measures should not be considered in isolation or as an alternative to its financial measures presented in accordance with GAAP, including operating revenues, net income or loss attributable to partners, net cash provided by or used in operating activities or any other measure of liquidity or financial performance presented in accordance with GAAP as a measure of operating performance, liquidity or ability to service debt obligations and make cash distributions to unitholders. The non-GAAP financial measures presented by us may not be comparable to similarly titled measures of other companies because they may not calculate their measures in the same manner.
Following the Transaction, adjusted EBITDA for the newly combined Partnership will be defined as net income or loss attributable to partners adjusted for (i) distributions from unconsolidated affiliates, net of earnings (ii) depreciation and amortization expense, (iii) net interest expense, (iv) noncontrolling interest in depreciation and income tax expense, (v) unrealized gains and losses from commodity derivatives, (vi) income tax expense or benefit, (vii) impairment expense and (viii) certain other non-cash items. Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Management believes these measures provide investors meaningful insight into results from ongoing operations.
For 2016 and prior periods, the Partnership defined adjusted EBITDA as net income or loss attributable to partners less interest income, noncontrolling interest in depreciation and income tax expense, non-cash commodity derivative gains, plus interest expense, income tax expense, depreciation and amortization expense, non-cash commodity derivative losses, and certain other items.
The commodity derivative non-cash losses and gains result from the marking to market of certain financial derivatives used by us for risk management purposes that we do not account for under the hedge method of accounting. These non-cash losses or gains may or may not be realized in future periods when the derivative contracts are settled, due to fluctuating commodity prices.
Adjusted EBITDA is used as a supplemental liquidity and performance measure and adjusted segment EBITDA is used as a supplemental performance measure by the Partnership's management and by external users of its financial statements, such as investors, commercial banks, research analysts and others to assess:
- financial performance of the Partnership's assets without regard to financing methods, capital structure or historical cost basis;
- the Partnership's operating performance and return on capital as compared to those of other companies in the midstream energy industry, without regard to financing methods or capital structure;
- viability and performance of acquisitions and capital expenditure projects and the overall rates of return on investment opportunities;
- performance of the Partnership's business excluding non-cash commodity derivative gains or losses; and
- in the case of Adjusted EBITDA, the ability of the Partnership's assets to generate cash sufficient to pay interest costs, support its indebtedness, make cash distributions to its unitholders and general partner, and pay maintenance capital expenditures.
We define adjusted segment EBITDA for each segment as segment net income or loss attributable to partners plus or minus adjustments for non-cash mark-to-market of commodity derivative instruments for that segment, plus depreciation and amortization expense, and certain other items for that segment, adjusted for any noncontrolling interest portion of depreciation, amortization and income tax expense for that segment. The Partnership's adjusted EBITDA equals the sum of the adjusted segment EBITDA reported for each of its segments, plus general and administrative expense.
Following the Transaction, distributable cash flow will be defined as adjusted EBITDA less maintenance capital expenditures, cash portion of interest expense, the impact of minimum volume receipt for throughput commitments and certain other items.
For 2016 and prior periods, the Partnership defined distributable cash flow as net cash provided by or used in operating activities, less maintenance capital expenditures, net of reimbursable projects, plus or minus adjustments for non-cash mark-to-market of derivative instruments, net income attributable to noncontrolling interests net of depreciation and income tax, net changes in operating assets and liabilities, other adjustments to reconcile net cash provided by or used in operating activities, and certain other items.
Maintenance capital expenditures are cash expenditures made to maintain the Partnership's cash flows, operating capacity or earnings capacity. These expenditures add on to or improve capital assets owned, including certain system integrity, compliance and safety improvements. Maintenance capital expenditures also include certain well connects, and may include the acquisition or construction of new capital assets. Non-cash mark-to-market of derivative instruments is considered to be non-cash for the purpose of computing distributable cash flow because settlement will not occur until future periods, and will be impacted by future changes in commodity prices and interest rates. We compare the distributable cash flow we generate to the cash distributions we expect to pay and have paid to our partners. Using this metric, we compute our distribution coverage ratio. Distributable cash flow is used as a supplemental liquidity and performance measure by the Partnership's management and by external users of its financial statements, such as investors, commercial banks, research analysts and others, to assess the Partnership's ability to make cash distributions to its unitholders and its general partner.
ABOUT
CAUTIONARY STATEMENTS
This press release may contain or incorporate by reference forward-looking statements as defined under the federal securities laws regarding
The key risk factors that may have a direct bearing on the Partnership's results of operations and financial condition are described in detail in the "Risk Factors" section of the Partnership's most recently filed annual report and subsequently filed quarterly reports with the
DCP MIDSTREAM, LP | ||||||||||||||||||||||||||||||
FINANCIAL RESULTS AND | ||||||||||||||||||||||||||||||
SUMMARY BALANCE SHEET DATA | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||
(Millions, except per unit amounts) | ||||||||||||||||||||||||||||||
Sales of natural gas, propane, NGLs and condensate | $ | 298 | $ | 296 | $ | 1,093 | $ | 1,442 | ||||||||||||||||||||||
Transportation, processing and other | 115 | 111 | 424 | 371 | ||||||||||||||||||||||||||
(Losses) gains from commodity derivative activity, net | (15 | ) | 28 | (20 | ) | 85 | ||||||||||||||||||||||||
Total operating revenues | 398 | 435 | 1,497 | 1,898 | ||||||||||||||||||||||||||
Purchases of natural gas, propane and NGLs | (254 | ) | (257 | ) | (946 | ) | (1,246 | ) | ||||||||||||||||||||||
Operating and maintenance expense | (42 | ) | (58 | ) | (183 | ) | (214 | ) | ||||||||||||||||||||||
Depreciation and amortization expense | (31 | ) | (32 | ) | (122 | ) | (120 | ) | ||||||||||||||||||||||
General and administrative expense | (24 | ) | (21 | ) | (88 | ) | (85 | ) | ||||||||||||||||||||||
Goodwill impairment | — | — | — | (82 | ) | |||||||||||||||||||||||||
Gain on sale of assets | — | — | 47 | — | ||||||||||||||||||||||||||
Other expense | — | (4 | ) | (7 | ) | (4 | ) | |||||||||||||||||||||||
Total operating costs and expenses | (351 | ) | (372 | ) | (1,299 | ) | (1,751 | ) | ||||||||||||||||||||||
Operating income | 47 | 63 | 198 | 147 | ||||||||||||||||||||||||||
Interest expense | (23 | ) | (23 | ) | (94 | ) | (92 | ) | ||||||||||||||||||||||
Earnings from unconsolidated affiliates | 55 | 52 | 214 | 173 | ||||||||||||||||||||||||||
Income tax benefit | 1 | 2 | — | 5 | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (5 | ) | (4 | ) | (6 | ) | (5 | ) | ||||||||||||||||||||||
Net income attributable to partners | 75 | 90 | 312 | 228 | ||||||||||||||||||||||||||
General partner's interest in net income | (31 | ) | (31 | ) | (124 | ) | (124 | ) | ||||||||||||||||||||||
Net income allocable to limited partners | $ | 44 | $ | 59 | $ | 188 | $ | 104 | ||||||||||||||||||||||
Net income per limited partner unit — basic and diluted | $ | 0.38 | $ | 0.51 | $ | 1.64 | $ | 0.91 | ||||||||||||||||||||||
Weighted-average limited partner units outstanding — basic and diluted | 114.8 | 114.7 | 114.7 | 114.6 |
December 31, | December 31, | ||||||||||
2016 | 2015 | ||||||||||
(Millions) | |||||||||||
Cash and cash equivalents | $ | 1 | $ | 2 | |||||||
Other current assets | 226 | 304 | |||||||||
Property, plant and equipment, net | 3,272 | 3,476 | |||||||||
Other long-term assets | 1,662 | 1,695 | |||||||||
Total assets | $ | 5,161 | $ | 5,477 | |||||||
Current liabilities | $ | 234 | $ | 200 | |||||||
Current portion of long-term debt | 500 | — | |||||||||
Long-term debt | 1,750 | 2,424 | |||||||||
Other long-term liabilities | 44 | 48 | |||||||||
Partners' equity | 2,601 | 2,772 | |||||||||
Noncontrolling interests | 32 | 33 | |||||||||
Total liabilities and equity | $ | 5,161 | $ | 5,477 |
DCP MIDSTREAM, LP | ||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||
(Millions, except per unit amounts) | ||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures: | ||||||||||||||||||||||||||||||
Net income attributable to partners | $ | 75 | $ | 90 | $ | 312 | $ | 228 | ||||||||||||||||||||||
Interest expense | 23 | 23 | 94 | 92 | ||||||||||||||||||||||||||
Depreciation, amortization and income tax expense, net of noncontrolling interests | 28 | 29 | 120 | 114 | ||||||||||||||||||||||||||
Goodwill impairment | — | — | — | 82 | ||||||||||||||||||||||||||
Discontinued construction projects | — | 9 | — | 10 | ||||||||||||||||||||||||||
Other charges | — | — | 7 | — | ||||||||||||||||||||||||||
Gain on sale of assets | — | — | (47 | ) | — | |||||||||||||||||||||||||
Non-cash commodity derivative mark-to-market | 25 | 25 | 108 | 130 | ||||||||||||||||||||||||||
Adjusted EBITDA | 151 | 176 | 594 | 656 | ||||||||||||||||||||||||||
Interest expense | (23 | ) | (23 | ) | (94 | ) | (92 | ) | ||||||||||||||||||||||
Maintenance capital expenditures, net of noncontrolling interest portion and reimbursable projects | (4 | ) | (5 | ) | (10 | ) | (25 | ) | ||||||||||||||||||||||
Distributions from unconsolidated affiliates, net of earnings | 6 | 5 | 44 | 28 | ||||||||||||||||||||||||||
Impact of minimum volume receipt for throughput commitment | (10 | ) | (10 | ) | — | (1 | ) | |||||||||||||||||||||||
Other, net | — | 2 | 3 | 6 | ||||||||||||||||||||||||||
Distributable cash flow | $ | 120 | $ | 145 | $ | 537 | $ | 572 | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 120 | $ | 157 | $ | 575 | $ | 650 | ||||||||||||||||||||||
Interest expense | 23 | 23 | 94 | 92 | ||||||||||||||||||||||||||
Distributions from unconsolidated affiliates, net of earnings | (6 | ) | (5 | ) | (44 | ) | (28 | ) | ||||||||||||||||||||||
Net changes in operating assets and liabilities | (4 | ) | (17 | ) | (126 | ) | (174 | ) | ||||||||||||||||||||||
Net income attributable to noncontrolling interests, net of depreciation and income tax | (5 | ) | (4 | ) | (7 | ) | (6 | ) | ||||||||||||||||||||||
Non-cash commodity derivative mark-to-market | 25 | 25 | 108 | 130 | ||||||||||||||||||||||||||
Other, net | (2 | ) | (3 | ) | (6 | ) | (8 | ) | ||||||||||||||||||||||
Adjusted EBITDA | $ | 151 | $ | 176 | $ | 594 | $ | 656 | ||||||||||||||||||||||
Interest expense | (23 | ) | (23 | ) | (94 | ) | (92 | ) | ||||||||||||||||||||||
Maintenance capital expenditures, net of noncontrolling interest portion and reimbursable projects | (4 | ) | (5 | ) | (10 | ) | (25 | ) | ||||||||||||||||||||||
Distributions from unconsolidated affiliates, net of earnings | 6 | 5 | 44 | 28 | ||||||||||||||||||||||||||
Other, net | (10 | ) | (8 | ) | 3 | 5 | ||||||||||||||||||||||||
Distributable cash flow | $ | 120 | $ | 145 | $ | 537 | $ | 572 |
DCP MIDSTREAM, LP | ||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||||||||
SEGMENT FINANCIAL RESULTS AND OPERATING DATA | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||
(Millions, except as indicated) | ||||||||||||||||||||||||||||||
Natural Gas Services Segment: | ||||||||||||||||||||||||||||||
Financial results: | ||||||||||||||||||||||||||||||
Segment net income attributable to partners | $ | 66 | $ | 72 | $ | 275 | $ | 182 | ||||||||||||||||||||||
Non-cash commodity derivative mark-to-market | 26 | 25 | 108 | 133 | ||||||||||||||||||||||||||
Depreciation and amortization expense | 28 | 29 | 111 | 109 | ||||||||||||||||||||||||||
Goodwill impairment | — | — | — | 82 | ||||||||||||||||||||||||||
Gain on sale of assets | — | — | (47 | ) | — | |||||||||||||||||||||||||
Noncontrolling interest portion of depreciation and income tax | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||
Other charges | — | 9 | 7 | 10 | ||||||||||||||||||||||||||
Adjusted segment EBITDA | $ | 120 | $ | 135 | $ | 453 | $ | 515 | ||||||||||||||||||||||
Operating and financial data: | ||||||||||||||||||||||||||||||
Natural gas throughput (MMcf/d) | 2,098 | 2,705 | 2,449 | 2,714 | ||||||||||||||||||||||||||
NGL gross production (Bbls/d) | 138,141 | 165,030 | 154,959 | 161,007 | ||||||||||||||||||||||||||
Operating and maintenance expense | $ | 35 | $ | 50 | $ | 153 | $ | 184 | ||||||||||||||||||||||
NGL Logistics Segment: | ||||||||||||||||||||||||||||||
Financial results: | ||||||||||||||||||||||||||||||
Segment net income attributable to partners | $ | 48 | $ | 50 | $ | 195 | $ | 174 | ||||||||||||||||||||||
Depreciation and amortization expense | 2 | 2 | 8 | 8 | ||||||||||||||||||||||||||
Adjusted segment EBITDA | $ | 50 | $ | 52 | $ | 203 | $ | 182 | ||||||||||||||||||||||
Operating and financial data: | ||||||||||||||||||||||||||||||
NGL pipelines throughput (Bbls/d) | 283,014 | 266,009 | 289,395 | 261,659 | ||||||||||||||||||||||||||
NGL fractionator throughput (Bbls/d) | 60,315 | 61,206 | 60,296 | 56,927 | ||||||||||||||||||||||||||
Operating and maintenance expense | $ | 5 | $ | 5 | $ | 22 | $ | 20 | ||||||||||||||||||||||
Wholesale Propane Logistics Segment: | ||||||||||||||||||||||||||||||
Financial results: | ||||||||||||||||||||||||||||||
Segment net income attributable to partners | $ | 7 | $ | 10 | $ | 24 | $ | 44 | ||||||||||||||||||||||
Non-cash commodity derivative mark-to-market | (1 | ) | — | — | (3 | ) | ||||||||||||||||||||||||
Depreciation and amortization expense | 1 | 1 | 3 | 3 | ||||||||||||||||||||||||||
Adjusted segment EBITDA | $ | 7 | $ | 11 | $ | 27 | $ | 44 | ||||||||||||||||||||||
Operating and financial data: | ||||||||||||||||||||||||||||||
Propane sales volume (Bbls/d) | 15,607 | 13,749 | 13,309 | 15,685 | ||||||||||||||||||||||||||
Operating and maintenance expense | $ | 2 | $ | 3 | $ | 8 | $ | 10 |
DCP MIDSTREAM, LP | ||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||
2016 | 2015 |
2016 | 2015 | |||||||||||||||||||||||||||||
(Millions, except as indicated) | ||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures: | ||||||||||||||||||||||||||||||||
Distributable cash flow | $ | 120 | $ | 145 | $ | 537 | $ | 572 | ||||||||||||||||||||||||
Distributions declared | $ | 121 | $ | 121 | $ | 483 | $ | 483 | ||||||||||||||||||||||||
Distribution coverage ratio - declared | 0.99 | x | 1.20 | x | 1.11 | x | 1.18 | x | ||||||||||||||||||||||||
Distributable cash flow | $ | 120 | $ | 145 | $ | 537 | $ | 572 | ||||||||||||||||||||||||
Distributions paid | $ | 120 | $ | 120 | $ | 483 | $ | 482 | ||||||||||||||||||||||||
Distribution coverage ratio - paid | 1.00 | x | 1.21 | x | 1.11 | x | 1.19 | x |
Q116 | Q216 | Q316 | Q416 | Twelve months ended December 31, 2016 |
||||||||||||||
(Millions, except as indicated) | ||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures: | ||||||||||||||||||
Net income attributable to partners | $ | 72 | $ | 45 | $ | 120 | $ | 75 | $ | 312 | ||||||||
Maintenance capital expenditures, net of noncontrolling interest portion and reimbursable projects | (2 | ) | (1 | ) | (3 | ) | (4 | ) | (10 | ) | ||||||||
Depreciation, amortization and income tax expense, net of noncontrolling interests |
32 | 29 | 31 | 28 | 120 | |||||||||||||
Non-cash commodity derivative mark-to-market | 45 | 37 | 1 | 25 | 108 | |||||||||||||
Distributions from unconsolidated affiliates, net of earnings | 14 | 11 | 13 | 6 | 44 | |||||||||||||
Impact of minimum volume receipt for throughput commitment | 3 | 4 | 3 | (10 | ) | — | ||||||||||||
Gain on sale of assets | — | — | (47 | ) | — | (47 | ) | |||||||||||
Other, net | 1 | 3 | 6 | — | 10 | |||||||||||||
Distributable cash flow | $ | 165 | $ | 128 | $ | 124 | $ | 120 | $ | 537 | ||||||||
Distributions declared | $ | 121 | $ | 121 | $ | 120 | $ | 121 | $ | 483 | ||||||||
Distribution coverage ratio - declared | 1.36 | x | 1.06 | x | 1.03 | x | 0.99 | x | 1.11 | x | ||||||||
Distributable cash flow | $ | 165 | $ | 128 | $ | 124 | $ | 120 | $ | 537 | ||||||||
Distributions paid | $ | 121 | $ | 121 | $ | 121 | $ | 120 | $ | 483 | ||||||||
Distribution coverage ratio - paid | 1.36 | x | 1.06 | x | 1.02 | x | 1.00 | x | 1.11 | x |
DCP MIDSTREAM, LP | |||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||
(Unaudited) | |||||||||
Twelve Months Ended | |||||||||
December 31, 2017 | |||||||||
Low | High | ||||||||
Forecast | Forecast | ||||||||
(Millions) | |||||||||
Reconciliation of Non-GAAP Measures: | |||||||||
Forecasted net income attributable to partners | $ | 165 | $ | 324 | |||||
Distributions from unconsolidated affiliates, net of earnings | 75 | 85 | |||||||
Interest expense, net of interest income | 288 | 288 | |||||||
Income taxes | 7 | 7 | |||||||
Depreciation and amortization, net of noncontrolling interests | 398 | 398 | |||||||
Non-cash commodity derivative mark-to-market | 7 | 8 | |||||||
Forecasted adjusted EBITDA | 940 | 1,110 | |||||||
Interest expense, net of interest income | (288 | ) | (288 | ) | |||||
Maintenance capital expenditures, net of reimbursable projects | (100 | ) | (145 | ) | |||||
Income taxes and other | (7 | ) | (7 | ) | |||||
Forecasted distributable cash flow | $ | 545 | $ | 670 |
Investor Relations Contact:Andrea Attel Phone: 303-605-1741 Cell: 720-235-6433