(State of organization) | (I.R.S. Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Exchange on which Registered | Symbol | ||
Liability Company Interests |
☒ | Accelerated filer | ☐ | ||
Non-accelerated filer | ☐ | Smaller reporting company | ||
Emerging growth company |
Item | Description | Page | ||
Defined Term | Definition | |
/d | Per day. | |
2014 Plan | EnLink Midstream, LLC’s 2014 Long-Term Incentive Plan. | |
AMZ | Alerian MLP Index for Master Limited Partnerships. | |
ASC | The FASB Accounting Standards Codification. | |
ASC 842 | ASC 842, Leases, a new accounting standard effective January 1, 2019 related to the accounting for lease agreements. | |
Ascension JV | Ascension Pipeline Company, LLC, a joint venture between a subsidiary of ENLK and a subsidiary of Marathon Petroleum Corporation in which ENLK owns a 50% interest and Marathon Petroleum Corporation owns a 50% interest. The Ascension JV, which began operations in April 2017, owns an NGL pipeline that connects ENLK’s Riverside fractionator to Marathon Petroleum Corporation’s Garyville refinery. | |
ASU | The FASB Accounting Standards Update. | |
Avenger | Avenger crude oil gathering system, a crude oil gathering system in the northern Delaware Basin. | |
Bbls | Barrels. | |
Bcf | Billion cubic feet. | |
Cedar Cove JV | Cedar Cove Midstream LLC, a joint venture between a subsidiary of ENLK and a subsidiary of Kinder Morgan, Inc. in which ENLK owns a 30% interest and Kinder Morgan, Inc. owns a 70% interest. The Cedar Cove JV, which was formed in November 2016, owns gathering and compression assets in Blaine County, Oklahoma, located in the STACK play. | |
CFTC | U.S. Commodity Futures Trading Commission. | |
CNOW | Central Northern Oklahoma Woodford Shale. | |
Consolidated Credit Facility | A $1.75 billion unsecured revolving credit facility entered into by ENLC that matures on January 25, 2024, which includes a $500.0 million letter of credit subfacility. The Consolidated Credit Facility was available upon closing of the Merger and is guaranteed by ENLK. | |
Delaware Basin JV | Delaware G&P LLC, a joint venture between a subsidiary of ENLK and an affiliate of NGP in which ENLK owns a 50.1% interest and NGP owns a 49.9% interest. The Delaware Basin JV, which was formed in August 2016, owns the Lobo processing facilities located in the Delaware Basin in Texas. | |
Devon | Devon Energy Corporation. | |
Enfield | Enfield Holdings, L.P. | |
ENLC | EnLink Midstream, LLC. | |
ENLC Class C common Units | A class of non-economic ENLC common units issued to Enfield immediately prior to the Merger equal to the number of Series B Preferred Units of ENLK held by Enfield immediately prior to the effective time of the Merger, in order to provide Enfield with certain voting rights with respect to ENLC. | |
ENLC Credit Facility | A $250.0 million secured revolving credit facility entered into by ENLC that would have matured on March 7, 2019, which included a $125.0 million letter of credit subfacility. The ENLC Credit Facility was terminated on January 25, 2019 in connection with the consummation of the Merger. | |
ENLC EDA | Equity Distribution Agreement entered into by ENLC in February 2019 with RBC Capital Markets, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc., BMO Capital Markets Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Jefferies LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., SunTrust Robinson Humphrey, Inc., and Wells Fargo Securities, LLC (collectively, the “Sales Agents”) to sell up to $400.0 million in aggregate gross sales of ENLC common units from time to time through an “at the market” equity offering program. | |
ENLK | EnLink Midstream Partners, LP or, when applicable, EnLink Midstream Partners, LP together with its consolidated subsidiaries. Also referred to as the “Partnership.” | |
ENLK Credit Facility | A $1.5 billion unsecured revolving credit facility entered into by ENLK that would have matured on March 6, 2020, which included a $500.0 million letter of credit subfacility. The ENLK Credit Facility was terminated on January 25, 2019 in connection with the consummation of the Merger. | |
EOGP | EnLink Oklahoma Gas Processing, LP or EnLink Oklahoma Gas Processing, LP together with, when applicable, its consolidated subsidiaries. As of January 31, 2019, EOGP is wholly-owned by the Operating Partnership. | |
FASB | Financial Accounting Standards Board. | |
GAAP | Generally accepted accounting principles in the United States of America. | |
Gal | Gallons. | |
GCF | Gulf Coast Fractionators, which owns an NGL fractionator in Mont Belvieu, Texas. ENLK owns 38.75% of GCF. |
General Partner | EnLink Midstream GP, LLC, the general partner of ENLK, which owns a 0.4% general partner interest in ENLK. Prior to the effective time of the Merger, the General Partner also owned all of the incentive distribution rights in ENLK. | |
GIP | Global Infrastructure Management, LLC, an independent infrastructure fund manager, itself, its affiliates, or managed fund vehicles, including GIP III Stetson I, L.P., GIP III Stetson II, L.P., and their affiliates. | |
GIP Transaction | On July 18, 2018, subsidiaries of Devon closed a transaction to sell all of their equity interests in ENLK, ENLC, and the managing member of ENLC to GIP. | |
GP Plan | EnLink Midstream GP, LLC’s Long-Term Incentive Plan. | |
Gross Operating Margin | A non-GAAP financial measure. See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” for the definition and other information. | |
ISDAs | International Swaps and Derivatives Association Agreements. | |
Merger | On January 25, 2019, NOLA Merger Sub merged with and into ENLK with ENLK continuing as the surviving entity and a subsidiary of ENLC. | |
Merger Agreement | The Agreement and Plan of Merger, dated as of October 21, 2018, by and among ENLK, the General Partner, ENLC, the managing member of ENLC, and NOLA Merger Sub related to the Merger. | |
MMbbls | One million barrels. | |
MMbtu | Million British thermal units. | |
MMcf | Million cubic feet. | |
MVC | Minimum volume commitment. | |
NGL | Natural gas liquid. | |
NGP | NGP Natural Resources XI, LP. | |
NOLA Merger Sub | NOLA Merger Sub, LLC, previously a wholly-owned subsidiary of ENLC prior to the Merger. | |
Operating Partnership | EnLink Midstream Operating, LP, a Delaware limited partnership and wholly owned subsidiary of ENLK. | |
ORV | ENLK’s Ohio River Valley crude oil, condensate stabilization, natural gas compression, and brine disposal assets in the Utica and Marcellus shales. | |
OTC | Over-the-counter. | |
Permian Basin | A large sedimentary basin that includes the Midland and Delaware Basins in west Texas and New Mexico. | |
POL contracts | Percentage-of-liquids contracts. | |
POP contracts | Percentage-of-proceeds contracts. | |
Series B Preferred Units | ENLK’s Series B Cumulative Convertible Preferred Units. | |
Series C Preferred Units | ENLK’s Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units. | |
STACK | Sooner Trend Anadarko Basin Canadian and Kingfisher Counties in Oklahoma. | |
Term Loan | An $850.0 million term loan entered into by ENLK on December 11, 2018 with Bank of America, N.A., as Administrative Agent, Bank of Montreal and Royal Bank of Canada, as Co-Syndication Agents, Citibank, N.A. and Wells Fargo Bank, National Association, as Co-Documentation Agents, and the lenders party thereto, which ENLC assumed in connection with the Merger and the obligations of which ENLK guarantees. | |
Thunderbird Plant | A gas processing plant in central Oklahoma. | |
White Star | White Star Petroleum Holdings, LLC. |
June 30, 2019 | December 31, 2018 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Accounts receivable: | |||||||
Trade, net of allowance for bad debt of $0.5 and $0.3, respectively | |||||||
Accrued revenue and other | |||||||
Related party | |||||||
Fair value of derivative assets | |||||||
Natural gas and NGLs inventory, prepaid expenses, and other | |||||||
Total current assets | |||||||
Property and equipment, net of accumulated depreciation of $3,198.1 and $2,967.4, respectively | |||||||
Intangible assets, net of accumulated amortization of $484.1 and $422.2, respectively | |||||||
Goodwill | |||||||
Investment in unconsolidated affiliates | |||||||
Fair value of derivative assets | |||||||
Other assets, net | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND MEMBERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and drafts payable | $ | $ | |||||
Accounts payable to related party | |||||||
Accrued gas, NGLs, condensate, and crude oil purchases | |||||||
Fair value of derivative liabilities | |||||||
Current maturities of long-term debt | |||||||
Other current liabilities | |||||||
Total current liabilities | |||||||
Long-term debt | |||||||
Asset retirement obligations | |||||||
Other long-term liabilities | |||||||
Deferred tax liability, net | |||||||
Fair value of derivative liabilities | |||||||
Redeemable non-controlling interest | |||||||
Members’ equity: | |||||||
Members’ equity (487,227,012 and 181,309,981 units issued and outstanding, respectively) | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Non-controlling interest | |||||||
Total members’ equity | |||||||
Total liabilities and members’ equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Unaudited) | |||||||||||||||
Revenues: | |||||||||||||||
Product sales | $ | $ | $ | $ | |||||||||||
Product sales—related parties | |||||||||||||||
Midstream services | |||||||||||||||
Midstream services—related parties | |||||||||||||||
Gain (loss) on derivative activity | ( | ) | ( | ) | |||||||||||
Total revenues | |||||||||||||||
Operating costs and expenses: | |||||||||||||||
Cost of sales (1) | |||||||||||||||
Operating expenses | |||||||||||||||
General and administrative | |||||||||||||||
Loss on disposition of assets | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Impairments | |||||||||||||||
Loss on secured term loan receivable | |||||||||||||||
Total operating costs and expenses | |||||||||||||||
Operating income (loss) | ( | ) | |||||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net of interest income | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income from unconsolidated affiliates | |||||||||||||||
Other income (expense) | ( | ) | |||||||||||||
Total other expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income (loss) before non-controlling interest and income taxes | ( | ) | |||||||||||||
Income tax benefit (provision) | ( | ) | ( | ) | |||||||||||
Net income (loss) | ( | ) | |||||||||||||
Net income attributable to non-controlling interest | |||||||||||||||
Net income (loss) attributable to ENLC | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Net income (loss) attributable to ENLC per unit: | |||||||||||||||
Basic common unit | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Diluted common unit | $ | ( | ) | $ | $ | ( | ) | $ |
(1) | Includes related party cost of sales of |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Unaudited) | |||||||||||||||
Net income (loss) | $ | $ | $ | ( | ) | $ | |||||||||
Loss on designated cash flow hedge (1) | ( | ) | ( | ) | |||||||||||
Comprehensive income (loss) | ( | ) | ( | ) | |||||||||||
Comprehensive income attributable to non-controlling interest | |||||||||||||||
Comprehensive income (loss) attributable to ENLC | $ | ( | ) | $ | $ | ( | ) | $ |
(1) | Includes a tax benefit of $ |
Common Units | Accumulated Other Comprehensive Loss | Non-Controlling Interest | Total | Redeemable Non-controlling interest (Temporary Equity) | ||||||||||||||||||
$ | Units | $ | $ | $ | $ | |||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Balance, December 31, 2018 | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Adoption of ASC 842 | — | — | — | — | ||||||||||||||||||
Balance, January 1, 2019 | ( | ) | ||||||||||||||||||||
Conversion of restricted units for common units, net of units withheld for taxes | ( | ) | — | ( | ) | ( | ) | — | ||||||||||||||
Unit-based compensation | — | — | — | |||||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | ||||||||||||||||||
Distributions | ( | ) | — | — | ( | ) | ( | ) | — | |||||||||||||
Fair value adjustment related to redeemable non-controlling interest | — | — | ( | ) | ||||||||||||||||||
Net income (loss) | ( | ) | — | — | ( | ) | ||||||||||||||||
Issuance of common units for ENLK public common units related to the Merger | — | ( | ) | — | ||||||||||||||||||
Balance, March 31, 2019 | ( | ) | ||||||||||||||||||||
Unit-based compensation | — | — | — | |||||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | ||||||||||||||||||
Distributions | ( | ) | — | — | ( | ) | ( | ) | — | |||||||||||||
Loss on designated cash flow hedge (1) | — | — | ( | ) | — | ( | ) | — | ||||||||||||||
Fair value adjustment related to redeemable non-controlling interest | — | — | ( | ) | ||||||||||||||||||
Net income (loss) | ( | ) | — | — | ||||||||||||||||||
Balance, June 30, 2019 | $ | $ | ( | ) | $ | $ | $ |
(1) | Includes a tax benefit of $ |
Common Units | Accumulated Other Comprehensive Loss | Non-Controlling Interest | Total | Redeemable Non-controlling interest (Temporary Equity) | ||||||||||||||||||
$ | Units | $ | $ | $ | $ | |||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Balance, December 31, 2017 | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Issuance of common units by ENLK | — | — | — | — | ||||||||||||||||||
Conversion of restricted units for common units, net of units withheld for taxes | ( | ) | — | ( | ) | — | ||||||||||||||||
Non-controlling interest’s impact of conversion of restricted units | — | — | ( | ) | ( | ) | ||||||||||||||||
Unit-based compensation | — | — | — | |||||||||||||||||||
Change in equity due to issuance of units by ENLK | ( | ) | — | — | — | |||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | ||||||||||||||||||
Distributions | ( | ) | — | — | ( | ) | ( | ) | — | |||||||||||||
Net income | — | — | ||||||||||||||||||||
Balance, March 31, 2018 | ( | ) | ||||||||||||||||||||
Conversion of restricted units for common units, net of units withheld for taxes | ( | ) | — | ( | ) | — | ||||||||||||||||
Non-controlling interest’s impact of conversion of restricted units | — | — | ( | ) | ( | ) | ||||||||||||||||
Unit-based compensation | — | — | — | |||||||||||||||||||
Change in equity due to issuance of units by ENLK | ( | ) | — | — | — | |||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | ||||||||||||||||||
Distributions | ( | ) | — | — | ( | ) | ( | ) | — | |||||||||||||
Net income | — | — | ||||||||||||||||||||
Balance, June 30, 2018 | $ | $ | ( | ) | $ | $ | $ |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
(Unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | ( | ) | $ | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Impairments | |||||||
Depreciation and amortization | |||||||
Loss on secured term loan receivable | |||||||
Non-cash unit-based compensation | |||||||
(Gain) loss on derivatives recognized in net income (loss) | ( | ) | |||||
Cash settlements on derivatives | ( | ) | |||||
Amortization of debt issue costs, net discount (premium) of notes | |||||||
Distribution of earnings from unconsolidated affiliates | |||||||
Income from unconsolidated affiliates | ( | ) | ( | ) | |||
Non-cash revenue from contract restructuring | ( | ) | |||||
Other operating activities | ( | ) | |||||
Changes in assets and liabilities net of assets acquired and liabilities assumed: | |||||||
Accounts receivable, accrued revenue, and other | ( | ) | |||||
Natural gas and NGLs inventory, prepaid expenses, and other | ( | ) | ( | ) | |||
Accounts payable, accrued product purchases, and other accrued liabilities | ( | ) | |||||
Net cash provided by operating activities | |||||||
Cash flows from investing activities: | |||||||
Additions to property and equipment | ( | ) | ( | ) | |||
Other investing activities | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | |||||||
Payments on borrowings | ( | ) | ( | ) | |||
Payment of installment payable for EOGP acquisition | ( | ) | |||||
Debt financing costs | ( | ) | |||||
Conversion of restricted units, net of units withheld for taxes | ( | ) | ( | ) | |||
Distribution to members | ( | ) | ( | ) | |||
Distributions to non-controlling interests | ( | ) | ( | ) | |||
Contributions by non-controlling interests | |||||||
Other financing activities | ( | ) | ( | ) | |||
Net cash used in financing activities | ( | ) | ( | ) | |||
Net increase (decrease) in cash and cash equivalents | ( | ) | |||||
Cash and cash equivalents, beginning of period | |||||||
Cash and cash equivalents, end of period | $ | $ | |||||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for interest | $ | $ | |||||
Cash paid for income taxes | $ | $ | |||||
Non-cash investing activities: | |||||||
Non-cash accrual of property and equipment | $ | ( | ) | $ | ( | ) | |
Discounted secured term loan receivable from contract restructuring | $ | $ |
(a) | Organization of Business |
• | Each issued and outstanding ENLK common unit (except for ENLK common units held by ENLC and its subsidiaries) was converted into |
• | The General Partner’s incentive distribution rights in ENLK were eliminated. |
• | The Series B Preferred Units continue to be issued and outstanding, except that certain terms of the Series B Preferred Units have been modified pursuant to an amended partnership agreement of ENLK. See “Note 8—Certain Provisions of the Partnership Agreement” for additional information regarding the modified terms of the Series B Preferred Units. |
• | ENLC issued to Enfield, the current holder of the Series B Preferred Units, for no additional consideration, ENLC Class C Common Units equal to the number of Series B Preferred Units held by Enfield immediately prior to the effective time of the Merger, in order to provide Enfield with certain voting rights with respect to ENLC. For each additional Series B Preferred Unit issued by ENLK in quarterly in-kind distributions, ENLC will issue an additional ENLC Class C Common Unit to the applicable holder of such Series B Preferred Unit. In addition, for each Series B Preferred Unit that is exchanged into an ENLC common unit, an ENLC Class C Common Unit will be canceled. |
• | The Series C Preferred Units and all of ENLK’s then-existing senior notes continue to be issued and outstanding following the Merger. |
• | Each unit-based award issued and outstanding immediately prior to the effective time of the Merger under the GP Plan and the 2014 Plan has been converted into an award with respect to ENLC common units with substantially similar terms as were in effect immediately prior to the effective time. |
• | Each unit-based award with performance-based vesting conditions issued and outstanding immediately prior to the effective time of the Merger under the GP Plan has been modified such that the performance metric for such award relates (on a weighted average basis) to (i) the combined performance of ENLC and ENLK for periods preceding the |
• | ENLC assumed the outstanding debt under the Term Loan and ENLK became a guarantor thereof. See “Note 6—Long-Term Debt” for additional information regarding the Term Loan. |
• | We refinanced our existing revolving credit facilities at ENLK and ENLC. In connection with the Merger, we entered into the Consolidated Credit Facility, with respect to which ENLK is a guarantor. See “Note 6—Long-Term Debt” for additional information regarding the Consolidated Credit Facility. |
• | We were required to allocate the goodwill in our Corporate reporting unit previously associated with the incentive distribution rights in ENLK granted to the General Partner which were created at the formation of ENLC in 2014, to the Permian, North Texas, Oklahoma, and Louisiana reporting units, which resulted in the recognition of a goodwill impairment of $ |
• | We reduced our deferred tax liability (“DTL”) by $ |
(b) | Nature of Business |
• | gathering, compressing, treating, processing, transporting, storing, and selling natural gas; |
• | fractionating, transporting, storing, and selling NGLs; and |
• | gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and condensate, in addition to brine disposal services. |
(a) | Basis of Presentation |
(b) | Revenue Recognition |
MVC and Firm Transportation Commitments (1) | |||
2019 (remaining) | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total | $ |
(1) | Amounts do not represent expected shortfall under these commitments. |
(d) | Accounting Standards to be Adopted in Future Periods |
Permian | North Texas | Oklahoma | Louisiana | Corporate | Totals | ||||||||||||||||||
Six Months Ended June 30, 2019 | |||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Goodwill allocation | ( | ) | |||||||||||||||||||||
Impairment | ( | ) | ( | ) | |||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | $ | $ |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Six Months Ended June 30, 2019 | |||||||||||
Customer relationships, beginning of period | $ | $ | ( | ) | $ | ||||||
Amortization expense | — | ( | ) | ( | ) | ||||||
Customer relationships, end of period | $ | $ | ( | ) | $ |
2019 (remaining) | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total | $ |
• | Office space- Our primary offices are in Dallas, Houston, and Midland, with smaller offices in other locations near our assets. Our office leases are long-term in nature and represent $ |
• | Compression and other field equipment- We pay third parties to provide compressors or other field equipment for our assets. Under these agreements, a third party installs and operates compressor units based on specifications set by us to meet our compression needs at specific locations. While the third party determines which compressors to install and operates and maintains the units, we have the right to control the use of the compressors and are the sole economic beneficiary of the identified assets. These agreements are typically for an initial term of one to three years but will automatically renew from month to month until canceled by us or the lessor. Compression and other field equipment rentals represent $ |
• | Office equipment- We rent office equipment for a monthly fee. These leases are typically for several years and represent $ |
• | Land and land easements- We make periodic payments to lease land or to have access to our assets. Land leases and easements are typically long-term to match the expected useful life of the corresponding asset and represent $ |
June 30, 2019 | |||
Finance leases: | |||
Property and equipment | $ | ||
Accumulated depreciation | ( | ) | |
Property and equipment, net of accumulated depreciation | $ | ||
Other current liabilities | $ | ||
Operating leases: | |||
Other assets, net | $ | ||
Other current liabilities | $ | ||
Other long-term liabilities | $ | ||
Other lease information | |||
Weighted-average remaining lease term - Finance leases | |||
Weighted-average remaining lease term - Operating leases | |||
Weighted-average discount rate - Finance leases | % | ||
Weighted-average discount rate - Operating leases | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2019 | 2019 | ||||||
Finance lease expense: | |||||||
Amortization of right-of-use asset | $ | $ | |||||
Operating lease expense: | |||||||
Long-term operating lease expense | |||||||
Short-term lease expense | |||||||
Variable lease expense | |||||||
Total lease expense | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2019 | 2019 | ||||||
Supplemental cash flow information: | |||||||
Cash payments for finance leases included in cash flows from financing activities | $ | $ | |||||
Cash payments for operating leases included in cash flows from operating activities | $ | $ | |||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | $ |
Total | 2019 (remaining) | 2020 | 2021 | 2022 | 2023 | Thereafter | ||||||||||||||||||||||
Undiscounted finance lease liability | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Finance lease liability | ||||||||||||||||||||||||||||
Undiscounted operating lease liability | ||||||||||||||||||||||||||||
Reduction due to present value | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||
Operating lease liability | ||||||||||||||||||||||||||||
Total lease liability | $ | $ | $ | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Outstanding Principal | Premium (Discount) | Long-Term Debt | Outstanding Principal | Premium (Discount) | Long-Term Debt | ||||||||||||||||||
ENLC Credit Facility, due 2019 (1) | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Consolidated Credit Facility due 2024 (2) | |||||||||||||||||||||||
Term Loan due 2021 (3) | |||||||||||||||||||||||
ENLK's 2.70% Senior unsecured notes due 2019 (4) | |||||||||||||||||||||||
ENLK’s 4.40% Senior unsecured notes due 2024 | |||||||||||||||||||||||
ENLK’s 4.15% Senior unsecured notes due 2025 | ( | ) | ( | ) | |||||||||||||||||||
ENLK’s 4.85% Senior unsecured notes due 2026 | ( | ) | ( | ) | |||||||||||||||||||
ENLC’s 5.375% Senior unsecured notes due 2029 | |||||||||||||||||||||||
ENLK’s 5.60% Senior unsecured notes due 2044 | ( | ) | ( | ) | |||||||||||||||||||
ENLK’s 5.05% Senior unsecured notes due 2045 | ( | ) | ( | ) | |||||||||||||||||||
ENLK’s 5.45% Senior unsecured notes due 2047 | ( | ) | ( | ) | |||||||||||||||||||
Debt classified as long-term, including current maturities of long-term debt | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||
Debt issuance cost (5) | ( | ) | ( | ) | |||||||||||||||||||
Less: Current maturities of long-term debt (4) | ( | ) | |||||||||||||||||||||
Long-term debt, net of unamortized issuance cost | $ | $ |
(1) | Bore interest based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was |
(2) | Bears interest based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was |
(3) | Bears interest based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was |
(4) | ENLK’s |
(5) | Net of amortization of $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Current income tax benefit (provision) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||
Deferred income tax benefit (provision) | ( | ) | ( | ) | |||||||||||
Income tax benefit (provision) | $ | $ | ( | ) | $ | $ | ( | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Expected income tax benefit (provision) based on federal statutory rate | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
State income tax benefit (provision), net of federal benefit | ( | ) | ( | ) | |||||||||||
Non-deductible expense related to asset impairment | ( | ) | |||||||||||||
Other | ( | ) | |||||||||||||
Income tax benefit (provision) | $ | $ | ( | ) | $ | $ | ( | ) |
June 30, 2019 | December 31, 2018 | ||||||
Deferred income tax assets: | |||||||
Federal net operating loss carryforward | $ | $ | |||||
State net operating loss carryforward | |||||||
Total deferred tax assets | |||||||
Deferred tax liabilities: | |||||||
Property, equipment, and intangible assets (1) | ( | ) | ( | ) | |||
Other | ( | ) | ( | ) | |||
Total deferred tax liabilities | ( | ) | ( | ) | |||
Deferred tax asset (liability), net | $ | $ | ( | ) |
(1) | Includes our investment in ENLK and primarily relates to differences between the book and tax bases of property and equipment. |
(a) | ENLK Series B Preferred Units |
Declaration period | Distribution paid as additional Series B Preferred Units | Cash Distribution (in millions) | Date paid/payable | ||||||
2019 | |||||||||
Fourth Quarter of 2018 | $ | February 13, 2019 | |||||||
First Quarter of 2019 | $ | May 14, 2019 | |||||||
Second Quarter of 2019 | $ | August 13, 2019 | |||||||
2018 | |||||||||
Fourth Quarter of 2017 | $ | February 13, 2018 | |||||||
First Quarter of 2018 | $ | May 14, 2018 | |||||||
Second Quarter of 2018 | $ | August 13, 2018 |
(b) | ENLK Series C Preferred Units |
(c) | ENLK Common Unit Distributions |
Declaration period | Distribution/unit | Date paid/payable | ||||
2019 | ||||||
Fourth Quarter of 2018 | $ | February 13, 2019 | ||||
2018 | ||||||
Fourth Quarter of 2017 | $ | February 13, 2018 | ||||
First Quarter of 2018 | $ | May 14, 2018 | ||||
Second Quarter of 2018 | $ | August 13, 2018 |
(d) | Allocation of ENLK Income |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Income allocation for incentive distributions | $ | $ | $ | $ | |||||||||||
Unit-based compensation attributable to ENLC’s restricted and performance units | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
General Partner share of net income (loss) | ( | ) | |||||||||||||
General Partner interest in EOGP acquisition | |||||||||||||||
General Partner interest in net income (loss) | $ | ( | ) | $ | $ | ( | ) | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Distributed earnings allocated to: | |||||||||||||||
Common units (1)(2) | $ | $ | $ | $ | |||||||||||
Unvested restricted units (1)(2) | |||||||||||||||
Total distributed earnings | $ | $ | $ | $ | |||||||||||
Undistributed loss allocated to: | |||||||||||||||
Common units | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Unvested restricted units | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total undistributed loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Net income (loss) allocated to: | |||||||||||||||
Common units | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Unvested restricted units | ( | ) | ( | ) | |||||||||||
Total net income (loss) | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Basic and diluted net income (loss) per unit: | |||||||||||||||
Basic | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Diluted | $ | ( | ) | $ | $ | ( | ) | $ |
(1) | For the three months ended June 30, 2019 and 2018, distributed earnings represent a declared distribution of $ |
(2) | For the six months ended June 30, 2019, distributed earnings included a distribution of $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Basic weighted average units outstanding: | |||||||||||
Weighted average common units outstanding | |||||||||||
Diluted weighted average units outstanding: | |||||||||||
Weighted average basic common units outstanding | |||||||||||
Dilutive effect of non-vested restricted units (1) | |||||||||||
Total weighted average diluted common units outstanding |
(1) | All common unit equivalents were antidilutive for the three and six months ended June 30, 2019 since a net loss existed for those periods. |
Declaration period | Distribution/unit | Date paid/payable | ||||
2019 | ||||||
Fourth Quarter of 2018 | $ | February 14, 2019 | ||||
First Quarter of 2019 | $ | May 14, 2019 | ||||
Second Quarter 2019 | $ | August 13, 2019 | ||||
2018 | ||||||
Fourth Quarter of 2017 | $ | February 14, 2018 | ||||
First Quarter of 2018 | $ | May 15, 2018 | ||||
Second Quarter 2018 | $ | August 14, 2018 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
GCF | |||||||||||||||
Distributions | $ | $ | $ | $ | |||||||||||
Equity in income | $ | $ | $ | $ | |||||||||||
Cedar Cove JV | |||||||||||||||
Contributions | $ | $ | $ | $ | |||||||||||
Distributions | $ | $ | $ | $ | |||||||||||
Equity in loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Total | |||||||||||||||
Contributions | $ | $ | $ | $ | |||||||||||
Distributions | $ | $ | $ | $ | |||||||||||
Equity in income | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
GCF | $ | $ | |||||
Cedar Cove JV | |||||||
Total investment in unconsolidated affiliates | $ | $ |
(a) | Long-Term Incentive Plans |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Cost of unit-based compensation charged to operating expense | $ | $ | $ | $ | |||||||||||
Cost of unit-based compensation charged to general and administrative expense | |||||||||||||||
Total unit-based compensation expense | $ | $ | $ | $ | |||||||||||
Non-controlling interest in unit-based compensation | $ | $ | $ | $ | |||||||||||
Amount of related income tax benefit recognized in net income | $ | $ | $ | $ |
(b) | EnLink Midstream Partners, LP Restricted Incentive Units |
Six Months Ended June 30, 2019 | |||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | |||||
Non-vested, beginning of period | $ | ||||||
Vested (1) | ( | ) | |||||
Forfeited | ( | ) | |||||
Converted to ENLC (2) | ( | ) | |||||
Non-vested, end of period | $ |
(1) | Vested units included |
(2) | As a result of the Merger, the Legacy ENLK Awards converted into ENLC unit-based awards using the |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
EnLink Midstream Partners, LP Restricted Incentive Units: | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Aggregate intrinsic value of units vested | $ | $ | $ | $ | ||||||||||||
Fair value of units vested | $ | $ | $ | $ |
(c) | EnLink Midstream Partners, LP Performance Units |
Six Months Ended June 30, 2019 | |||||||
EnLink Midstream Partners, LP Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | |||||
Non-vested, beginning of period | $ | ||||||
Vested (1) | ( | ) | |||||
Converted to ENLC (2) | ( | ) | |||||
Non-vested, end of period | $ |
(1) | Vested units included |
(2) | As a result of the Merger, the performance-based Legacy ENLK Awards converted into ENLC unit-based performance awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. |
Six Months Ended June 30, | ||||||||
EnLink Midstream Partners, LP Performance Units: | 2019 | 2018 | ||||||
Aggregate intrinsic value of units vested | $ | $ | ||||||
Fair value of units vested | $ | $ |
(d) | EnLink Midstream, LLC Restricted Incentive Units |
Six Months Ended June 30, 2019 | ||||||||
EnLink Midstream, LLC Restricted Incentive Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | $ | |||||||
Granted (1) | ||||||||
Vested (1)(2) | ( | ) | ||||||
Forfeited | ( | ) | ||||||
Converted from ENLK (3) | ||||||||
Non-vested, end of period | $ | |||||||
Aggregate intrinsic value, end of period (in millions) | $ |
(1) | Restricted incentive units typically vest at the end of three years. In March 2019, ENLC granted |
(2) | Vested units included |
(3) | Represents Legacy ENLK Awards that were converted into ENLC unit-based awards using the |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
EnLink Midstream, LLC Restricted Incentive Units: | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Aggregate intrinsic value of units vested | $ | $ | $ | $ | ||||||||||||
Fair value of units vested | $ | $ | $ | $ |
(e) | EnLink Midstream, LLC’s Performance Units |
Six Months Ended June 30, 2019 | ||||||||
EnLink Midstream, LLC Performance Units: | Number of Units | Weighted Average Grant-Date Fair Value | ||||||
Non-vested, beginning of period | $ | |||||||
Granted | ||||||||
Vested (1) | ( | ) | ||||||
Forfeited | ( | ) | ||||||
Converted from ENLK (2) | ||||||||
Non-vested, end of period | $ | |||||||
Aggregate intrinsic value, end of period (in millions) | $ |
(1) | Vested units included |
(2) | As a result of the Merger, the performance-based Legacy ENLK Awards converted into ENLC performance-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. |
Six Months Ended June 30, | ||||||||
EnLink Midstream, LLC Performance Units: | 2019 | 2018 | ||||||
Aggregate intrinsic value of units vested | $ | $ | ||||||
Fair value of units vested | $ | $ |
Performance Level | Achieved ENLC TSR Position Relative to Designated Peer Companies | Vesting percentage of the Tranche TSR Units | ||
Below Threshold | Less than 25% | |||
Threshold | Equal to 25% | |||
Target | Equal to 50% | |||
Maximum | Greater than or Equal to 75% |
Performance Level | ENLC’s Achieved Cash Flow | Vesting percentage of the Tranche CF Units | ||
Below Threshold | Less than $1.43 | |||
Threshold | Equal to $1.43 | |||
Target | Equal to $1.55 | |||
Maximum | Greater than or Equal to $1.72 |
EnLink Midstream, LLC Performance Units: | June 2019 | March 2019 | ||||||
Beginning TSR price | $ | $ | ||||||
Risk-free interest rate | % | % | ||||||
Volatility factor | % | % | ||||||
Distribution yield | % | % |
June 30, 2019 | |||
Fair value of derivative liabilities—current | $ | ( | ) |
Fair value of derivative liabilities—long-term | ( | ) | |
Net fair value of derivatives | $ | ( | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Change in fair value of derivatives | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Realized gain (loss) on derivatives | ( | ) | ( | ) | ( | ) | |||||||||
Gain (loss) on derivative activity | $ | $ | ( | ) | $ | $ | ( | ) |
June 30, 2019 | December 31, 2018 | ||||||
Fair value of derivative assets—current | $ | $ | |||||
Fair value of derivative assets—long-term | |||||||
Fair value of derivative liabilities—current | ( | ) | ( | ) | |||
Fair value of derivative liabilities—long-term | ( | ) | ( | ) | |||
Net fair value of derivatives | $ | $ |
June 30, 2019 | |||||||||||
Commodity | Instruments | Unit | Volume | Fair Value | |||||||
NGL (short contracts) | Swaps | Gallons | ( | ) | $ | ||||||
NGL (long contracts) | Swaps | Gallons | ( | ) | |||||||
Natural gas (short contracts) | Swaps | MMBtu | ( | ) | |||||||
Natural gas (long contracts) | Swaps | MMBtu | ( | ) | |||||||
Crude and condensate (short contracts) | Swaps | MMbbls | ( | ) | |||||||
Crude and condensate (long contracts) | Swaps | MMbbls | |||||||||
Total fair value of derivatives | $ |
Level 2 | ||||||||
June 30, 2019 | December 31, 2018 | |||||||
Interest rate swaps (1) | $ | ( | ) | $ | ||||
Commodity swaps (2) | $ | $ |
(1) | The fair values of the interest rate swaps are estimated based on the difference between expected cash flows calculated at the contracted interest rates and the expected cash flows using observable benchmarks for the variable interest rates. |
(2) |
June 30, 2019 | December 31, 2018 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt (1) | $ | $ | $ | $ | |||||||||||
Secured term loan receivable (2) | $ | $ | $ | $ |
(1) | The carrying value of long-term debt as of December 31, 2018 includes current maturities. The carrying value of long-term debt is reduced by debt issuance costs of $ |
(2) | In late May 2019, White Star, the counterparty to our $ |
• | Permian Segment. The Permian segment includes our natural gas gathering, processing, and transmission activities and our crude oil operations in the Midland and Delaware Basins in west Texas and eastern New Mexico and our crude operations in south Texas; |
• | North Texas Segment. The North Texas segment includes our natural gas gathering, processing, and transmission activities in north Texas; |
• | Oklahoma Segment. The Oklahoma segment includes our natural gas gathering, processing, and transmission activities, and our crude oil operations in the Cana-Woodford, Arkoma-Woodford, northern Oklahoma Woodford, STACK, and CNOW shale areas; |
• | Louisiana Segment. The Louisiana segment includes our natural gas pipelines, natural gas processing plants, storage facilities, fractionation facilities, and NGL assets located in Louisiana and our crude oil operations in ORV; and |
• | Corporate Segment. The Corporate segment includes our unconsolidated affiliate investments in the Cedar Cove JV in Oklahoma, our ownership interest in GCF in south Texas, our derivative activity, and our general corporate assets and expenses. |
Permian | North Texas | Oklahoma | Louisiana | Corporate | Totals | ||||||||||||||||||
Three Months Ended June 30, 2019 | |||||||||||||||||||||||
Natural gas sales | $ | ( | ) | $ | $ | $ | $ | $ | |||||||||||||||
NGL sales | |||||||||||||||||||||||
Crude oil and condensate sales | |||||||||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||||||
Product sales | |||||||||||||||||||||||
Natural gas sales—related parties | ( | ) | |||||||||||||||||||||
NGL sales—related parties | ( | ) | |||||||||||||||||||||
Crude oil and condensate sales—related parties | ( | ) | |||||||||||||||||||||
Product sales—related parties | ( | ) | |||||||||||||||||||||
Gathering and transportation | |||||||||||||||||||||||
Processing | |||||||||||||||||||||||
NGL services | |||||||||||||||||||||||
Crude services | |||||||||||||||||||||||
Other services | |||||||||||||||||||||||
Midstream services | |||||||||||||||||||||||
NGL services—related parties | ( | ) | |||||||||||||||||||||
Crude services—related parties | ( | ) | |||||||||||||||||||||
Midstream services—related parties | ( | ) | ( | ) | |||||||||||||||||||
Revenue from contracts with customers | ( | ) | |||||||||||||||||||||
Cost of sales | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Gain on derivative activity | |||||||||||||||||||||||
Segment profit | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Depreciation and amortization | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Goodwill | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Capital expenditures | $ | $ | $ | $ | $ | $ |
Permian | North Texas | Oklahoma | Louisiana | Corporate | Totals | ||||||||||||||||||
Three Months Ended June 30, 2018 | |||||||||||||||||||||||
Natural gas sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||
NGL sales | |||||||||||||||||||||||
Crude oil and condensate sales | |||||||||||||||||||||||
Product sales | |||||||||||||||||||||||
Natural gas sales—related parties | |||||||||||||||||||||||
NGL sales—related parties | ( | ) | |||||||||||||||||||||
Crude oil and condensate sales—related parties | ( | ) | |||||||||||||||||||||
Product sales—related parties | ( | ) | |||||||||||||||||||||
Gathering and transportation | |||||||||||||||||||||||
Processing | |||||||||||||||||||||||
NGL services | |||||||||||||||||||||||
Crude services | |||||||||||||||||||||||
Other services | ( | ) | |||||||||||||||||||||
Midstream services | |||||||||||||||||||||||
Gathering and transportation—related parties | |||||||||||||||||||||||
Processing—related parties | |||||||||||||||||||||||
Crude services—related parties | |||||||||||||||||||||||
Other services—related parties | ( | ) | |||||||||||||||||||||
Midstream services—related parties | |||||||||||||||||||||||
Revenue from contracts with customers | ( | ) | |||||||||||||||||||||
Cost of sales | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Loss on derivative activity | ( | ) | ( | ) | |||||||||||||||||||
Segment profit | $ | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Depreciation and amortization | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Goodwill | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Capital expenditures | $ | $ | $ | $ | $ | $ |
Permian | North Texas | Oklahoma | Louisiana | Corporate | Totals | ||||||||||||||||||
Six Months Ended June 30, 2019 | |||||||||||||||||||||||
Natural gas sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||
NGL sales | |||||||||||||||||||||||
Crude oil and condensate sales | |||||||||||||||||||||||
Product sales | |||||||||||||||||||||||
Natural gas sales—related parties | ( | ) | |||||||||||||||||||||
NGL sales—related parties | ( | ) | |||||||||||||||||||||
Crude oil and condensate sales—related parties | ( | ) | |||||||||||||||||||||
Product sales—related parties | ( | ) | |||||||||||||||||||||
Gathering and transportation | |||||||||||||||||||||||
Processing | |||||||||||||||||||||||
NGL services | |||||||||||||||||||||||
Crude services | |||||||||||||||||||||||
Other services | ( | ) | |||||||||||||||||||||
Midstream services | |||||||||||||||||||||||
NGL services—related parties | ( | ) | |||||||||||||||||||||
Crude services—related parties | ( | ) | |||||||||||||||||||||
Midstream services—related parties | ( | ) | |||||||||||||||||||||
Revenue from contracts with customers | ( | ) | |||||||||||||||||||||
Cost of sales | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Gain on derivative activity | |||||||||||||||||||||||
Segment profit | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Depreciation and amortization | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Impairments | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||
Goodwill | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Capital expenditures | $ | $ | $ | $ | $ | $ |
Permian | North Texas | Oklahoma | Louisiana | Corporate | Totals | ||||||||||||||||||
Six Months Ended June 30, 2018 | |||||||||||||||||||||||
Natural gas sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||
NGL sales | |||||||||||||||||||||||
Crude oil and condensate sales | |||||||||||||||||||||||
Product sales | |||||||||||||||||||||||
Natural gas sales—related parties | |||||||||||||||||||||||
NGL sales—related parties | ( | ) | |||||||||||||||||||||
Crude oil and condensate sales—related parties | ( | ) | |||||||||||||||||||||
Product sales—related parties | ( | ) | |||||||||||||||||||||
Gathering and transportation | |||||||||||||||||||||||
Processing | |||||||||||||||||||||||
NGL services | |||||||||||||||||||||||
Crude services | |||||||||||||||||||||||
Other services | |||||||||||||||||||||||
Midstream services | |||||||||||||||||||||||
Gathering and transportation—related parties | |||||||||||||||||||||||
Processing—related parties | |||||||||||||||||||||||
Crude services—related parties | |||||||||||||||||||||||
Other services—related parties | |||||||||||||||||||||||
Midstream services—related parties | |||||||||||||||||||||||
Revenue from contracts with customers | ( | ) | |||||||||||||||||||||
Cost of sales | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Loss on derivative activity | ( | ) | ( | ) | |||||||||||||||||||
Segment profit | $ | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Depreciation and amortization | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Goodwill | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Capital expenditures | $ | $ | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Segment profit | $ | $ | $ | $ | |||||||||||
General and administrative expenses | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Loss on disposition of assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Impairments | ( | ) | |||||||||||||
Loss on secured term loan receivable | ( | ) | ( | ) | |||||||||||
Operating income (loss) | $ | $ | $ | ( | ) | $ |
Segment Identifiable Assets: | June 30, 2019 | December 31, 2018 | ||||||
Permian | $ | $ | ||||||
North Texas | ||||||||
Oklahoma | ||||||||
Louisiana | ||||||||
Corporate | ||||||||
Total identifiable assets | $ | $ |
Natural gas and NGLs inventory, prepaid expenses, and other: | June 30, 2019 | December 31, 2018 | ||||||
Natural gas and NGLs inventory | $ | $ | ||||||
Secured term loan receivable from contract restructuring, net of discount of $1.1 at December 31, 2018 (1) | ||||||||
Prepaid expenses and other | ||||||||
Natural gas and NGLs inventory, prepaid expenses, and other | $ | $ |
(1) | In late May 2019, White Star, the counterparty to our $ |
Other current liabilities: | June 30, 2019 | December 31, 2018 | ||||||
Accrued interest | $ | $ | ||||||
Accrued wages and benefits, including taxes | ||||||||
Accrued ad valorem taxes | ||||||||
Capital expenditure accruals | ||||||||
Onerous performance obligations | ||||||||
Short-term lease liability | ||||||||
Suspense producer payments | ||||||||
Deferred revenue | ||||||||
Other | ||||||||
Other current liabilities | $ | $ |
• | gathering, compressing, treating, processing, transporting, storing, and selling natural gas; |
• | fractionating, transporting, storing, and selling NGLs; and |
• | gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and condensate, in addition to brine disposal services. |
• | Permian Segment. The Permian segment includes our natural gas gathering, processing, and transmission activities and our crude oil operations in the Midland and Delaware Basins in west Texas and eastern New Mexico and our crude operations in south Texas; |
• | North Texas Segment. The North Texas segment includes our natural gas gathering, processing, and transmission activities in north Texas; |
• | Oklahoma Segment. The Oklahoma segment includes our natural gas gathering, processing, and transmission activities, and our crude oil operations in the Cana-Woodford, Arkoma-Woodford, northern Oklahoma Woodford, STACK, and CNOW shale areas; |
• | Louisiana Segment. The Louisiana segment includes our natural gas pipelines, natural gas processing plants, storage facilities, fractionation facilities, and NGL assets located in Louisiana and our crude oil operations in ORV; and |
• | Corporate Segment. The Corporate segment includes our unconsolidated affiliate investments in the Cedar Cove JV in Oklahoma, our ownership interest in GCF in south Texas, our derivative activity, and our general corporate assets and expenses. |
• | gathering and transporting natural gas, NGLs, and crude oil on the pipeline systems we own; |
• | processing natural gas at our processing plants; |
• | fractionating and marketing recovered NGLs; |
• | providing compression services; |
• | providing crude oil and condensate transportation and terminal services; |
• | providing condensate stabilization services; |
• | providing brine disposal services; and |
• | providing natural gas, crude oil, and NGL storage. |
• | the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis; |
• | the ability of our assets to generate cash sufficient to pay interest costs, support our indebtedness, and make cash distributions to our unitholders; |
• | our operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing methods or capital structure; and |
• | the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) | $ | 9.1 | $ | 102.2 | $ | (125.7 | ) | $ | 159.3 | ||||||
Interest expense, net of interest income | 54.3 | 44.6 | 103.9 | 89.1 | |||||||||||
Depreciation and amortization | 153.7 | 145.3 | 305.8 | 283.4 | |||||||||||
Impairments | — | — | 186.5 | — | |||||||||||
Non-cash revenue from contract restructuring (1) | — | (45.5 | ) | — | (45.5 | ) | |||||||||
Loss on secured term loan receivable (1) | 52.9 | — | 52.9 | — | |||||||||||
Income from unconsolidated affiliates | (4.7 | ) | (4.4 | ) | (10.0 | ) | (7.4 | ) | |||||||
Distributions from unconsolidated affiliates | 7.6 | 5.4 | 10.1 | 11.4 | |||||||||||
Loss on disposition of assets | 0.1 | 1.2 | 0.1 | 1.3 | |||||||||||
Unit-based compensation | 8.0 | 9.6 | 19.1 | 14.7 | |||||||||||
Income tax provision (benefit) | (5.4 | ) | 6.3 | (3.6 | ) | 13.3 | |||||||||
(Gain) loss on non-cash derivatives | (7.2 | ) | 10.5 | (5.2 | ) | 14.0 | |||||||||
Payments under onerous performance obligation offset to other current and long-term liabilities | (4.5 | ) | (4.5 | ) | (9.0 | ) | (9.0 | ) | |||||||
Transaction costs (2) | 0.4 | — | 13.9 | — | |||||||||||
Other (3) | 0.1 | (0.2 | ) | 0.4 | 0.8 | ||||||||||
Adjusted EBITDA before non-controlling interest | 264.4 | 270.5 | 539.2 | 525.4 | |||||||||||
Non-controlling interest share of adjusted EBITDA from joint ventures (4) | (5.2 | ) | (4.1 | ) | (11.8 | ) | (7.7 | ) | |||||||
Adjusted EBITDA, net to ENLC | $ | 259.2 | $ | 266.4 | $ | 527.4 | $ | 517.7 |
(1) | In May 2018, we restructured our natural gas gathering and processing contract with White Star, and, as a result, recognized non-cash revenue representing the discounted present value of a secured term loan receivable granted to us by White Star. We have recorded a $52.9 million loss in our consolidated statement of operations for the three months ended June 30, 2019 related to the write-off of the secured term loan receivable. For additional information regarding this transaction, refer to “Item 1. Financial Statements—Note 2.” |
(2) | Represents transaction costs attributable to costs incurred related to the Merger. |
(3) | Includes accretion expense associated with asset retirement obligations and non-cash rent, which relates to lease incentives pro-rated over the lease term. |
(4) | Non-controlling interest share of adjusted EBITDA from joint ventures includes NGP’s 49.9% share of adjusted EBITDA from the Delaware Basin JV, Marathon Petroleum Corporation’s 50% share of adjusted EBITDA from the Ascension JV, and other minor non-controlling interests. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2019 | 2019 | ||||||
Net cash provided by operating activities | $ | 257.5 | $ | 521.5 | |||
Interest expense (1) | 53.9 | 103.4 | |||||
Current income tax expense | 0.3 | 1.3 | |||||
Transaction costs (2) | 0.4 | 13.9 | |||||
Other (3) | 1.6 | 0.1 | |||||
Changes in operating assets and liabilities which (provided) used cash: | |||||||
Accounts receivable, accrued revenues, inventories, and other | (165.9 | ) | (263.3 | ) | |||
Accounts payable, accrued product purchases, and other accrued liabilities (4) | 116.6 | 162.3 | |||||
Adjusted EBITDA before non-controlling interest | 264.4 | 539.2 | |||||
Non-controlling interest share of adjusted EBITDA from joint ventures (5) | (5.2 | ) | (11.8 | ) | |||
Adjusted EBITDA, net to ENLC | 259.2 | 527.4 | |||||
Interest expense, net of interest income | (54.3 | ) | (103.9 | ) | |||
Current taxes and other | (1.0 | ) | (3.5 | ) | |||
Maintenance capital expenditures, net to ENLC (6) | (13.2 | ) | (21.7 | ) | |||
ENLK preferred unit accrued cash distributions (7) | (23.1 | ) | (45.8 | ) | |||
Distributable cash flow | $ | 167.6 | $ | 352.5 |
(1) | Net of amortization of debt issuance costs and discount and premium, which are included in interest expense but not included in net cash provided by operating activities, and non-cash interest income, which is netted against interest expense but not included in adjusted EBITDA. |
(2) | Represents transaction costs incurred related to the Merger. |
(3) | Includes accruals for settled commodity swap transactions and distributions received from equity method investments to the extent those distributions exceed earnings from the investment. |
(4) | Net of payments under onerous performance obligation offset to other current and long-term liabilities. |
(5) | Non-controlling interest share of adjusted EBITDA from joint ventures includes NGP’s 49.9% share of adjusted EBITDA from the Delaware Basin JV, Marathon Petroleum Corporation’s 50% share of adjusted EBITDA from the Ascension JV, and other minor non-controlling interests. |
(6) | Excludes maintenance capital expenditures that were contributed by other entities and relate to the non-controlling interest share of our consolidated entities. |
(7) | Represents the cash distributions earned by the ENLK Series B Preferred Units and ENLK Series C Preferred Units of $17.1 million and $6.0 million, respectively, for the three months ended June 30, 2019, and cash distributions earned by the Series B Preferred Units and Series C Preferred Units of $33.8 million and $12.0 million, respectively, for the six months ended June 30, 2019. Cash distributions to be paid to holders of the ENLK Series B Preferred Units and ENLK Series C Preferred Units are not available to common unitholders. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating income (loss) | $ | 53.1 | $ | 148.8 | $ | (35.6 | ) | $ | 254.1 | |||||||
Add: | ||||||||||||||||
Operating expenses | 117.9 | 113.4 | 232.4 | 222.6 | ||||||||||||
General and administrative expenses | 32.2 | 30.4 | 83.6 | 57.9 | ||||||||||||
Loss on disposition of assets | 0.1 | 1.2 | 0.1 | 1.3 | ||||||||||||
Depreciation and amortization | 153.7 | 145.3 | 305.8 | 283.4 | ||||||||||||
Impairments | — | — | 186.5 | — | ||||||||||||
Loss on secured term loan receivable | 52.9 | — | 52.9 | — | ||||||||||||
Gross operating margin | $ | 409.9 | $ | 439.1 | $ | 825.7 | $ | 819.3 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Permian Segment | |||||||||||||||
Revenues | $ | 742.3 | $ | 689.9 | $ | 1,484.9 | $ | 1,406.7 | |||||||
Cost of sales | (680.5 | ) | (633.9 | ) | (1,356.7 | ) | (1,308.0 | ) | |||||||
Total gross operating margin | $ | 61.8 | $ | 56.0 | $ | 128.2 | $ | 98.7 | |||||||
North Texas Segment | |||||||||||||||
Revenues | $ | 149.8 | $ | 152.8 | $ | 324.1 | $ | 319.8 | |||||||
Cost of sales | (51.0 | ) | (32.0 | ) | (124.7 | ) | (81.9 | ) | |||||||
Total gross operating margin | $ | 98.8 | $ | 120.8 | $ | 199.4 | $ | 237.9 | |||||||
Oklahoma Segment | |||||||||||||||
Revenues | $ | 299.2 | $ | 342.6 | $ | 618.9 | $ | 598.0 | |||||||
Cost of sales | (159.4 | ) | (170.1 | ) | (343.6 | ) | (309.4 | ) | |||||||
Total gross operating margin | $ | 139.8 | $ | 172.5 | $ | 275.3 | $ | 288.6 | |||||||
Louisiana Segment | |||||||||||||||
Revenues | $ | 730.5 | $ | 874.2 | $ | 1,528.6 | $ | 1,694.1 | |||||||
Cost of sales | (627.9 | ) | (769.2 | ) | (1,314.5 | ) | (1,485.3 | ) | |||||||
Total gross operating margin | $ | 102.6 | $ | 105.0 | $ | 214.1 | $ | 208.8 | |||||||
Corporate Segment | |||||||||||||||
Revenues | $ | (211.8 | ) | $ | (294.8 | ) | $ | (467.3 | ) | $ | (492.2 | ) | |||
Cost of sales | 218.7 | 279.6 | 476.0 | 477.5 | |||||||||||
Total gross operating margin | $ | 6.9 | $ | (15.2 | ) | $ | 8.7 | $ | (14.7 | ) | |||||
Total | |||||||||||||||
Revenues | $ | 1,710.0 | $ | 1,764.7 | $ | 3,489.2 | $ | 3,526.4 | |||||||
Cost of sales | (1,300.1 | ) | (1,325.6 | ) | (2,663.5 | ) | (2,707.1 | ) | |||||||
Total gross operating margin | $ | 409.9 | $ | 439.1 | $ | 825.7 | $ | 819.3 | |||||||
Midstream Volumes: | |||||||||||||||
Permian Segment | |||||||||||||||
Gathering and Transportation (MMBtu/d) | 676,000 | 511,300 | 666,800 | 467,900 | |||||||||||
Processing (MMBtu/d) | 724,100 | 529,100 | 718,100 | 485,800 | |||||||||||
Crude Oil Handling (Bbls/d) | 145,100 | 119,700 | 146,200 | 113,800 | |||||||||||
North Texas Segment | |||||||||||||||
Gathering and Transportation (MMBtu/d) | 1,646,900 | 1,747,000 | 1,664,900 | 1,756,800 | |||||||||||
Processing (MMBtu/d) | 770,100 | 754,000 | 750,100 | 753,100 | |||||||||||
Oklahoma Segment | |||||||||||||||
Gathering and Transportation (MMBtu/d) | 1,314,900 | 1,235,500 | 1,279,800 | 1,142,200 | |||||||||||
Processing (MMBtu/d) | 1,298,800 | 1,200,700 | 1,265,400 | 1,135,400 | |||||||||||
Crude Oil Handling (Bbls/d) | 53,800 | 13,000 | 41,600 | 10,600 | |||||||||||
Louisiana Segment | |||||||||||||||
Gathering and Transportation (MMBtu/d) | 1,925,900 | 2,094,100 | 1,997,800 | 2,158,100 | |||||||||||
Processing (MMBtu/d) | 337,100 | 395,600 | 402,200 | 418,600 | |||||||||||
Crude Oil Handling (Bbls/d) | 20,000 | 15,700 | 17,500 | 13,600 | |||||||||||
NGL Fractionation (Gals/d) | 7,477,400 | 6,480,100 | 7,227,000 | 6,412,200 | |||||||||||
Brine Disposal (Bbls/d) | 3,400 | 3,500 | 3,400 | 3,200 |
• | Permian Segment. Gross operating margin in the Permian segment increased $5.8 million, which was primarily due to an $8.7 million increase in gross operating margin due to higher volumes on our Permian gas assets from continued development by our customers, including $6.1 million from our Delaware Basin assets and $2.6 million from our Midland Basin assets. These increases were partially offset by a $2.9 million decrease from our Permian Basin crude assets, which was primarily driven by higher gathering and transportation volumes contributing $2.9 million of incremental gross operating margin that was offset by a $5.6 million decrease in gross operating margin associated with our physical crude marketing arrangements. We manage our exposure to crude price fluctuations in our physical crude marketing arrangements through various derivative arrangements. The timing of our realization of the gains or losses from these crude derivative arrangements may not occur in the same period as the corresponding physical crude marketing transaction and all associated gains and losses from the derivative arrangements are reflected in our Corporate segment. |
• | North Texas Segment. Gross operating margin in the North Texas segment decreased $22.0 million primarily due to the January 1, 2019 expiration of Devon’s obligations related to MVCs on our North Texas assets. Shortfall revenue from the Devon-related MVCs was $20.8 million for the three months ended June 30, 2018. |
• | Oklahoma Segment. Gross operating margin in the Oklahoma segment decreased $32.7 million, which was primarily due to the recognition of $45.5 million in gross operating margin from a contract restructuring with White Star during the three months ended June 30, 2018, which was partially offset by $12.8 million due to higher volumes from continued development by our customers, including $6.6 million contributed by our Oklahoma gas assets and $6.2 million contributed by our Oklahoma crude assets. |
• | Louisiana Segment. Gross operating margin in the Louisiana segment decreased $2.4 million. Gross operating margin from our NGL transmission and fractionation assets increased by $7.8 million, which was primarily due to higher volumes that resulted from the completion of the Cajun-Sibon pipeline expansion in April 2019. The increase was offset by a $10.5 million decrease from our Louisiana gas business. Gross operating margin from our Louisiana gas transmission assets decreased $6.4 million due to the expiration of certain firm transportation contracts, decreased volumes, and negative market adjustment on gas inventory due to price declines. Gross operating margin from our Louisiana gas plants decreased $4.1 million due to lower processing margins and volumes attributable to a less favorable processing environment during the three months ended June 30, 2019. |
• | Corporate Segment. Gross operating margin in the Corporate segment increased $22.1 million, which was primarily due to the changes in fair value of our commodity swaps between the periods. For the three months ended June 30, 2019, realized losses of $0.3 million were offset by unrealized gains of $7.2 million. For the three months ended June 30, 2018, there were realized losses of $4.7 million in addition to unrealized losses of $10.5 million. |
Permian | North Texas | Oklahoma | Total | |||||||||||||
Three Months Ended | ||||||||||||||||
June 30, 2019 | ||||||||||||||||
Midstream services | $ | 3.9 | $ | — | $ | — | $ | 3.9 | ||||||||
Total | $ | 3.9 | $ | — | $ | — | $ | 3.9 | ||||||||
June 30, 2018 | ||||||||||||||||
Midstream services (1) | $ | — | $ | 0.1 | $ | 47.7 | $ | 47.8 | ||||||||
Midstream services—related parties | 2.3 | 20.8 | — | 23.1 | ||||||||||||
Total | $ | 2.3 | $ | 20.9 | $ | 47.7 | $ | 70.9 |
(1) | We restructured a natural gas gathering and processing contract with White Star that contained MVCs. As a result, we recognized $45.5 million of midstream services revenue in the Oklahoma segment for the three months ended June 30, 2018. |
Three Months Ended June 30, | Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
Permian Segment | $ | 28.4 | $ | 24.7 | $ | 3.7 | 15.0 | % | ||||||
North Texas Segment | 25.8 | 28.4 | (2.6 | ) | (9.2 | )% | ||||||||
Oklahoma Segment | 26.1 | 20.8 | 5.3 | 25.5 | % | |||||||||
Louisiana Segment | 37.6 | 39.5 | (1.9 | ) | (4.8 | )% | ||||||||
Total | $ | 117.9 | $ | 113.4 | $ | 4.5 | 4.0 | % |
• | Permian Segment. Operating expenses in the Permian segment increased $3.7 million primarily due to expanded operations with increases in utilities, materials and supplies expenses, and construction fees and services. |
• | North Texas Segment. Operating expenses in the North Texas segment decreased $2.6 million primarily due to decreased rents, compressor overhauls, labor and benefits costs, and materials and supplies expenses. |
• | Oklahoma Segment. Operating expenses in the Oklahoma segment increased $5.3 million primarily due to expanded operations with increases in compressor rentals and compression operations and maintenance. |
• | Louisiana Segment. Operating expenses in the Louisiana segment decreased $1.9 million primarily due to reduced materials and supplies expenses, labor and benefits costs, and compression rental offset partially by increased utility costs. |
Three Months Ended June 30, | |||||||
2019 | 2018 | ||||||
ENLK and ENLC Senior Notes | $ | 43.4 | $ | 40.0 | |||
ENLK Credit Facility | — | 4.9 | |||||
ENLC Credit Facility | — | 0.9 | |||||
Term Loan | 8.5 | — | |||||
Consolidated Credit Facility | 3.7 | — | |||||
Capitalized interest | (1.8 | ) | (1.6 | ) | |||
Amortization of debt issue costs and net discounts (premiums) | 1.0 | 0.9 | |||||
Other | (0.5 | ) | (0.5 | ) | |||
Total | $ | 54.3 | $ | 44.6 |
• | Permian Segment. Gross operating margin in the Permian segment increased $29.5 million, which was primarily due to a $25.4 million increase in gross operating margin due to higher volumes on our Permian gas assets from continued development by our customers, including $15.0 million from our Delaware Basin assets, and $10.4 million from our Midland Basin assets. The remaining increase of $4.3 million was from our Permian Basin crude assets due to a $9.1 million increase in gross operating margin from higher gathering and transportation volumes, which was partially offset by a $4.8 million decrease in gross operating margin associated with our physical crude marketing arrangements. |
• | North Texas Segment. Gross operating margin in the North Texas segment decreased $38.5 million, which was primarily due to the January 1, 2019 expiration of Devon’s obligations related to MVCs on our North Texas assets. Shortfall revenue from the Devon-related MVCs was $38.9 million for the six months ended June 30, 2018. |
• | Oklahoma Segment. Gross operating margin in the Oklahoma segment decreased $13.3 million, which was primarily due to recognition of $45.5 million in gross operating margin from a contract restructuring with White Star during the three months ended June 30, 2018, which was partially offset by $32.2 million primarily due to higher volumes from |
• | Louisiana Segment. Gross operating margin in the Louisiana segment increased $5.3 million. Gross operating margin from our NGL assets increased by $8.1 million primarily due to higher volumes with the completion of the Cajun-Sibon pipeline expansion in April 2019. Our ORV crude assets contributed an increase of $3.7 million primarily due to higher volumes. These increases were partially offset by a decrease of $6.7 million from our Louisiana gas business, primarily due to a $4.8 million decrease from our Louisiana gas plants, due to a less favorable processing environment during the six months ended June 30, 2019. |
• | Corporate Segment. Gross operating margin in the Corporate segment increased $23.4 million, which was primarily due to the changes in fair value of our commodity swaps between the periods. For the six months ended June 30, 2019, there were realized gains of $3.5 million in addition to unrealized gains of $5.2 million. For the six months ended June 30, 2018, there were realized losses of $0.7 million in addition to unrealized losses of $14.0 million. |
Permian | North Texas | Oklahoma | Total | |||||||||||||
Six Months Ended | ||||||||||||||||
June 30, 2019 | ||||||||||||||||
Midstream services | $ | 7.7 | $ | — | $ | — | $ | 7.7 | ||||||||
Total | $ | 7.7 | $ | — | $ | — | $ | 7.7 | ||||||||
June 30, 2018 | ||||||||||||||||
Midstream Services (1) | $ | — | $ | 0.1 | $ | 52.7 | $ | 52.8 | ||||||||
Midstream services—related parties | 5.7 | 38.9 | 1.2 | 45.8 | ||||||||||||
Total | $ | 5.7 | $ | 39.0 | $ | 53.9 | $ | 98.6 |
(1) | We restructured a natural gas gathering and processing contract with White Star that contained MVCs. As a result, we recognized $45.5 million of midstream services revenue in the Oklahoma segment for the six months ended June 30, 2018. |
Six Months Ended June 30, | Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
Permian Segment | $ | 56.2 | $ | 48.5 | $ | 7.7 | 15.9 | % | ||||||
North Texas Segment | 51.5 | 56.8 | (5.3 | ) | (9.3 | )% | ||||||||
Oklahoma Segment | 51.5 | 41.5 | 10.0 | 24.1 | % | |||||||||
Louisiana Segment | 73.2 | 75.8 | (2.6 | ) | (3.4 | )% | ||||||||
Total | $ | 232.4 | $ | 222.6 | $ | 9.8 | 4.4 | % |
• | Permian Segment. Operating expenses in the Permian segment increased $7.7 million primarily due to expanded operations and higher utilities expense, bulk purchases of materials and supplies, construction fees and services, and compressor rentals. |
• | North Texas Segment. Operating expenses in the North Texas segment decreased $5.3 million primarily due to decreased rents, compressor overhauls, and labor and benefits costs. |
• | Oklahoma Segment. Operating expenses in the Oklahoma segment increased $10.0 million primarily due to expanded operations with increases in compressor rentals, compression operations and maintenance, and labor and benefits costs. |
• | Louisiana Segment. Operating expenses in the Louisiana segment decreased $2.6 million primarily due to reduced materials and supplies expenses, labor and benefits costs, and compression rentals partially offset by increased equipment rental and utility costs. |
• | Unit-based compensation expense increased $6.3 million primarily due to increased bonus expense and lower forfeiture of units in 2019. |
• | Transaction costs increased $13.9 million primarily due to additional costs incurred related to the Merger, which closed during the first quarter of 2019. |
• | Fees and services expense increased $1.7 million primarily due to increased software consulting and legal fees. |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
ENLK and ENLC Senior Notes | $ | 83.4 | $ | 80.0 | |||
ENLK Credit Facility | 0.3 | 8.3 | |||||
ENLC Credit Facility | 0.2 | 1.6 | |||||
Term Loan | 17.1 | — | |||||
Consolidated Credit Facility | 6.1 | — | |||||
Capitalized interest | (3.8 | ) | (2.9 | ) | |||
Amortization of debt issue costs and net discounts (premiums) | 2.8 | 2.5 | |||||
Other | (2.2 | ) | (0.4 | ) | |||
Total | $ | 103.9 | $ | 89.1 |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Operating cash flows before working capital | $ | 429.5 | $ | 444.0 | |||
Changes in working capital | 92.0 | (14.7 | ) |
• | General and administrative expenses excluding unit-based compensation increased $19.3 million primarily due to higher transaction costs related to the Merger. For more information, see “Results of Operations.” |
• | Operating expenses excluding unit-based compensation increased $11.7 million primarily due to expanded operations. For more information, see “Results of Operations.” |
• | Interest expense, excluding amortization of debt issue costs and net discounts, increased $16.7 million. |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Growth capital expenditures | $ | (406.7 | ) | $ | (385.9 | ) | |
Maintenance capital expenditures | (21.7 | ) | (18.5 | ) |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Net borrowings on the ENLK Credit Facility | $ | — | $ | 520.0 | |||
Net borrowings (repayments) on the ENLC Credit Facility | (111.4 | ) | 9.8 | ||||
Net borrowings on the Consolidated Credit Facility | 200.0 | — | |||||
Net repayments on the ENLK 2019 unsecured senior notes | (400.0 | ) | — | ||||
Net borrowings on the ENLC 2029 unsecured senior notes | 500.0 | — | |||||
Contributions by non-controlling interests | 45.2 | 54.3 | |||||
Payment of installment payable for EOGP acquisition | — | (250.0 | ) | ||||
Distribution to members | (188.2 | ) | (95.7 | ) | |||
Distributions to ENLK common units and Series B and C Preferred Units | (150.0 | ) | (232.1 | ) | |||
Distributions to joint venture partners | (12.7 | ) | (23.4 | ) |
Payments Due by Period | |||||||||||||||||||||||||||
Total | Remainder 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | |||||||||||||||||||||
Long-term debt obligations | $ | 3,600.0 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,600.0 | |||||||||||||
Term Loan | 850.0 | — | — | 850.0 | — | — | — | ||||||||||||||||||||
Consolidated Credit Facility | 200.0 | — | — | — | — | — | 200.0 | ||||||||||||||||||||
Interest payable on fixed long-term debt obligations | 2,604.5 | 90.3 | 176.0 | 176.0 | 176.0 | 176.0 | 1,810.2 | ||||||||||||||||||||
Capital lease obligations | 0.4 | 0.4 | — | — | — | — | — | ||||||||||||||||||||
Operating lease obligations | 146.5 | 13.5 | 22.4 | 16.1 | 9.4 | 8.9 | 76.2 | ||||||||||||||||||||
Purchase obligations | 31.7 | 31.7 | — | — | — | — | — | ||||||||||||||||||||
Pipeline capacity and deficiency agreements (1) | 205.0 | 18.6 | 36.6 | 36.5 | 31.0 | 28.1 | 54.2 | ||||||||||||||||||||
Inactive easement commitment (2) | 10.0 | — | — | — | 10.0 | — | — | ||||||||||||||||||||
Total contractual obligations | $ | 7,648.1 | $ | 154.5 | $ | 235.0 | $ | 1,078.6 | $ | 226.4 | $ | 213.0 | $ | 5,740.6 |
(1) | Consists of pipeline capacity payments for firm transportation and deficiency agreements. |
(2) | Amounts related to inactive easements paid as utilized by us with balance due in 2022 if not utilized. |
1. | Fee-based contracts: Under fee-based contracts, we earn our fees through (1) stated fixed-fee arrangements in which we are paid a fixed fee per unit of volume processed or (2) arrangements where we purchase and resell commodities in connection with providing the related processing service and earn a net margin through a fee-like deduction subtracted from the purchase price of the commodities. |
2. | Processing margin contracts: Under these contracts, we pay the producer for the full amount of inlet gas to the plant, and we make a margin based on the difference between the value of liquids recovered from the processed natural gas as compared to the value of the natural gas volumes lost and the cost of fuel used in processing. The shrink and fuel losses are referred to as plant thermal reduction, or PTR. Our margins from these contracts are high during periods of high liquids prices relative to natural gas prices and can be negative during periods of high natural gas prices relative to liquids prices. However, we mitigate our risk of processing natural gas when margins are negative primarily through our ability to bypass processing when it is not profitable for us or by contracts that revert to a minimum fee for processing if the natural gas must be processed to meet pipeline quality specifications. For the six months ended June 30, 2019, less than 1% of our gross operating margin was generated from processing margin contracts. |
3. | POL contracts: Under these contracts, we receive a fee in the form of a percentage of the liquids recovered, and the producer bears all the cost of the natural gas shrink. Therefore, our margins from these contracts are greater during periods of high liquids prices. Our margins from processing cannot become negative under POL contracts, but they do decline during periods of low liquids prices. |
4. | POP contracts: Under these contracts, we receive a fee in the form of a portion of the proceeds of the sale of natural gas and liquids. Therefore, our margins from these contracts are greater during periods of high natural gas and liquids prices. Our margins from processing cannot become negative under POP contracts, but they do decline during periods of low natural gas and liquids prices. |
Period | Underlying | Notional Volume | We Pay | We Receive (1) | Fair Value Asset/(Liability) (In millions) | |||||||
July 2019 - March 2020 | Ethane | 357 (MBbls) | $0.2098/gal | Index | $ | (0.6 | ) | |||||
July 2019 - March 2020 | Propane | 522 (MBbls) | Index | $0.5229/gal | 2.6 | |||||||
July 2019 - September 2019 | Normal butane | 16 (MBbls) | Index | $0.5591/gal | 0.3 | |||||||
July 2019 - September 2019 | Natural gasoline | 40 (MBbls) | Index | $1.1165/gal | 0.1 | |||||||
July 2019 - October 2019 | Natural gas | 24,036 (MMBtu/d) | Index | $2.1606/MMBtu | — | |||||||
July 2019 - December 2022 | Crude and condensate | 13,129 (MBbls) | Index | $57.62/bbl | 11.3 | |||||||
$ | 13.7 |
(1) | Weighted average. |
Period | Total Number of Units Purchased (1) | Average Price Paid Per Unit | Total Number of Units Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Units that May Yet Be Purchased under the Plans or Programs | |||||||||
April 1, 2019 to April 30, 2019 | — | $ | — | — | — | ||||||||
May 1, 2019 to May 31, 2019 | 11,222 | 11.58 | — | — | |||||||||
June 1, 2019 to June 30, 2019 | 172 | 10.31 | — | — | |||||||||
Total | 11,394 | $ | 11.56 | — | — |
(1) | The common units were not re-acquired pursuant to any repurchase plan or program. |
Number | Description | |
2.1 | — | |
3.1 | — | |
3.2 | — | |
3.3 | — | |
3.4 | — | |
3.5 | — | |
3.6 | — | |
3.7 | — | |
3.8 | — | |
3.9 | — | |
3.10 | — | |
3.11 | — | |
3.12 | — | |
3.13 | — | |
3.14 | — | |
4.1 | — | |
4.2 | — | |
31.1 * | — | |
31.2 * | — | |
32.1 * | — | |
101 * | — | The following financial information from EnLink Midstream, LLC's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, formatted in inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018, (ii) Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018, (iii) Consolidated Statements of Changes in Members’ Equity for the three months ended June 30, 2019 and 2018 and March 31, 2019 and 2018, (iv) Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018, and (v) the Notes to Consolidated Financial Statements. |
104 * | — | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Filed herewith. |
EnLink Midstream, LLC | ||
By: | EnLink Midstream Manager, LLC, | |
its managing member | ||
By: | /s/ ERIC D. BATCHELDER | |
Eric D. Batchelder | ||
Executive Vice President and Chief Financial Officer | ||
August 7, 2019 |
1. | I have reviewed this quarterly report on Form 10-Q of EnLink Midstream, LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 7, 2019 | /s/ MICHAEL J. GARBERDING |
Michael J. Garberding | |
Chief Executive Officer | |
(principal executive officer) |
1. | I have reviewed this quarterly report on Form 10-Q of EnLink Midstream, LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 7, 2019 | /s/ ERIC D. BATCHELDER |
Eric D. Batchelder | |
Chief Financial Officer | |
(principal financial and accounting officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Date: August 7, 2019 | /s/ MICHAEL J. GARBERDING |
Michael J. Garberding | |
Chief Executive Officer | |
Date: August 7, 2019 | /s/ ERIC D. BATCHELDER |
Eric D. Batchelder | |
Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
ASSETS | ||
Allowance for bad debt | $ 0.5 | $ 0.3 |
Property and equipment, accumulated depreciation | 3,198.1 | 2,967.4 |
Intangible assets, accumulated amortization | $ 484.1 | $ 422.2 |
Members’ equity: | ||
Common units issued (in shares) | 487,227,012 | 181,309,981 |
Common units outstanding (in shares) | 487,227,012 | 181,309,981 |
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Statement [Abstract] | ||||
Related party cost of sales | $ 5.8 | $ 46.7 | $ 13.9 | $ 80.8 |
Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
||||||
Statement of Comprehensive Income [Abstract] | |||||||||
Net income (loss) | $ 9.1 | $ 102.2 | $ (125.7) | $ 159.3 | |||||
Loss on designated cash flow hedge | [1] | (9.9) | [2] | 0.0 | (9.9) | 0.0 | |||
Comprehensive income (loss) | (0.8) | 102.2 | (135.6) | 159.3 | |||||
Comprehensive income attributable to non-controlling interest | 25.2 | 74.2 | 66.7 | 118.9 | |||||
Comprehensive income (loss) attributable to ENLC | $ (26.0) | $ 28.0 | $ (202.3) | $ 40.4 | |||||
|
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||
Income tax expense (benefit) | $ (3.6) | $ (3.6) |
Consolidated Statement of Changes in Members' Equity - USD ($) $ in Millions |
Total |
Common Units |
Accumulated Other Comprehensive Loss |
Non-Controlling Interest |
Redeemable Non-controlling interest (Temporary Equity) |
||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Member equity, beginning balance at Dec. 31, 2017 | $ 5,556.7 | $ 1,924.2 | $ (2.0) | $ 3,634.5 | |||||||
Units outstanding, beginning balance (in shares) at Dec. 31, 2017 | 180,600,000 | ||||||||||
Increase (Decrease) in Members' Equity | |||||||||||
Conversion of restricted units for common units, net of units withheld for taxes | (2.9) | $ (2.9) | 0.0 | ||||||||
Conversion of restricted units for common units, net of units withheld for taxes (in shares) | 400,000 | ||||||||||
Unit-based compensation | 8.8 | $ 4.4 | 4.4 | ||||||||
Contributions from non-controlling interests | 22.7 | 22.7 | |||||||||
Distributions | (168.7) | (47.5) | (121.2) | ||||||||
Fair value adjustment related to redeemable non-controlling interest | (2.7) | 0.0 | (2.7) | $ 0.0 | |||||||
Net income (loss) | 57.1 | 12.4 | 44.7 | 0.0 | |||||||
Issuance of common units for ENLK public common units related to the Merger | 0.9 | 0.9 | |||||||||
Change in equity due to issuance of units by ENLK | 0.4 | (1.3) | 1.7 | ||||||||
Member equity, end balance at Mar. 31, 2018 | 5,472.3 | $ 1,889.3 | (2.0) | 3,585.0 | |||||||
Units outstanding, end balance (in shares) at Mar. 31, 2018 | 181,000,000.0 | ||||||||||
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2017 | 4.6 | ||||||||||
Increase (Decrease) in Temporary Equity | |||||||||||
Fair value adjustment related to redeemable non-controlling interest | (2.7) | $ 0.0 | (2.7) | 0.0 | |||||||
Net income | 57.1 | 12.4 | 44.7 | 0.0 | |||||||
Redeemable noncontrolling interest, ending balance at Mar. 31, 2018 | 4.6 | ||||||||||
Member equity, beginning balance at Dec. 31, 2017 | 5,556.7 | $ 1,924.2 | (2.0) | 3,634.5 | |||||||
Units outstanding, beginning balance (in shares) at Dec. 31, 2017 | 180,600,000 | ||||||||||
Increase (Decrease) in Members' Equity | |||||||||||
Loss on designated cash flow hedge | [1] | 0.0 | |||||||||
Member equity, end balance at Jun. 30, 2018 | 5,430.5 | $ 1,871.9 | (2.0) | 3,560.6 | |||||||
Units outstanding, end balance (in shares) at Jun. 30, 2018 | 181,100,000 | ||||||||||
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2017 | 4.6 | ||||||||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2018 | 4.6 | ||||||||||
Member equity, beginning balance at Mar. 31, 2018 | 5,472.3 | $ 1,889.3 | (2.0) | 3,585.0 | |||||||
Units outstanding, beginning balance (in shares) at Mar. 31, 2018 | 181,000,000.0 | ||||||||||
Increase (Decrease) in Members' Equity | |||||||||||
Conversion of restricted units for common units, net of units withheld for taxes | (0.6) | $ (0.6) | 0.0 | ||||||||
Conversion of restricted units for common units, net of units withheld for taxes (in shares) | 100,000 | ||||||||||
Unit-based compensation | 8.0 | $ 4.0 | 4.0 | ||||||||
Contributions from non-controlling interests | 31.6 | 31.6 | |||||||||
Distributions | (182.5) | (48.2) | (134.3) | ||||||||
Loss on designated cash flow hedge | [1] | 0.0 | |||||||||
Fair value adjustment related to redeemable non-controlling interest | (0.7) | 0.0 | (0.7) | 0.0 | |||||||
Net income (loss) | 102.2 | 28.0 | 74.2 | 0.0 | |||||||
Change in equity due to issuance of units by ENLK | 0.2 | (0.6) | 0.8 | ||||||||
Member equity, end balance at Jun. 30, 2018 | 5,430.5 | $ 1,871.9 | (2.0) | 3,560.6 | |||||||
Units outstanding, end balance (in shares) at Jun. 30, 2018 | 181,100,000 | ||||||||||
Redeemable noncontrolling interest, beginning balance at Mar. 31, 2018 | 4.6 | ||||||||||
Increase (Decrease) in Temporary Equity | |||||||||||
Fair value adjustment related to redeemable non-controlling interest | (0.7) | $ 0.0 | (0.7) | 0.0 | |||||||
Net income | 102.2 | 28.0 | 74.2 | 0.0 | |||||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2018 | 4.6 | ||||||||||
Member equity, beginning balance at Dec. 31, 2018 | $ 4,974.2 | $ 1,730.9 | (2.0) | 3,245.3 | |||||||
Units outstanding, beginning balance (in shares) at Dec. 31, 2018 | 181,309,981 | 181,300,000 | |||||||||
Increase (Decrease) in Members' Equity | |||||||||||
Conversion of restricted units for common units, net of units withheld for taxes | $ (8.4) | $ (5.6) | (2.8) | ||||||||
Conversion of restricted units for common units, net of units withheld for taxes (in shares) | 1,000,000.0 | ||||||||||
Unit-based compensation | 13.6 | $ 12.2 | 1.4 | ||||||||
Contributions from non-controlling interests | 15.7 | 15.7 | |||||||||
Distributions | (178.6) | (51.0) | (127.6) | ||||||||
Fair value adjustment related to redeemable non-controlling interest | 2.5 | 2.5 | 0.0 | (2.1) | |||||||
Net income (loss) | (134.8) | (176.3) | 41.5 | 0.0 | |||||||
Issuance of common units for ENLK public common units related to the Merger | 399.0 | $ 1,958.1 | (1,559.1) | ||||||||
Issuance of common units for ENLK public common units related to the Merger (in shares) | 304,900,000 | ||||||||||
Member equity, end balance at Mar. 31, 2019 | 5,083.5 | $ 3,471.1 | (2.0) | 1,614.4 | |||||||
Units outstanding, end balance (in shares) at Mar. 31, 2019 | 487,200,000 | ||||||||||
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2018 | 9.3 | ||||||||||
Increase (Decrease) in Temporary Equity | |||||||||||
Fair value adjustment related to redeemable non-controlling interest | 2.5 | $ 2.5 | 0.0 | (2.1) | |||||||
Net income | (134.8) | (176.3) | 41.5 | 0.0 | |||||||
Redeemable noncontrolling interest, ending balance at Mar. 31, 2019 | 7.2 | ||||||||||
Member equity, beginning balance at Dec. 31, 2018 | $ 4,974.2 | $ 1,730.9 | (2.0) | 3,245.3 | |||||||
Units outstanding, beginning balance (in shares) at Dec. 31, 2018 | 181,309,981 | 181,300,000 | |||||||||
Increase (Decrease) in Members' Equity | |||||||||||
Loss on designated cash flow hedge | [1] | $ (9.9) | |||||||||
Member equity, end balance at Jun. 30, 2019 | $ 4,946.7 | $ 3,324.6 | (11.9) | 1,634.0 | |||||||
Units outstanding, end balance (in shares) at Jun. 30, 2019 | 487,227,012 | 487,200,000 | |||||||||
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2018 | 9.3 | ||||||||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2019 | 5.8 | ||||||||||
Member equity, beginning balance at Mar. 31, 2019 | $ 5,083.5 | $ 3,471.1 | (2.0) | 1,614.4 | |||||||
Units outstanding, beginning balance (in shares) at Mar. 31, 2019 | 487,200,000 | ||||||||||
Increase (Decrease) in Members' Equity | |||||||||||
Unit-based compensation | 6.6 | $ 6.6 | 0.0 | ||||||||
Contributions from non-controlling interests | 29.5 | 29.5 | |||||||||
Distributions | (172.3) | (137.2) | (35.1) | ||||||||
Loss on designated cash flow hedge | [2] | (9.9) | [1] | (9.9) | |||||||
Fair value adjustment related to redeemable non-controlling interest | 0.2 | 0.2 | 0.0 | (1.4) | |||||||
Net income (loss) | 9.1 | (16.1) | 25.2 | 0.0 | |||||||
Member equity, end balance at Jun. 30, 2019 | $ 4,946.7 | $ 3,324.6 | $ (11.9) | 1,634.0 | |||||||
Units outstanding, end balance (in shares) at Jun. 30, 2019 | 487,227,012 | 487,200,000 | |||||||||
Redeemable noncontrolling interest, beginning balance at Mar. 31, 2019 | 7.2 | ||||||||||
Increase (Decrease) in Temporary Equity | |||||||||||
Fair value adjustment related to redeemable non-controlling interest | $ 0.2 | $ 0.2 | 0.0 | (1.4) | |||||||
Net income | $ 9.1 | $ (16.1) | $ 25.2 | 0.0 | |||||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2019 | $ 5.8 | ||||||||||
|
Consolidated Statement of Changes in Members' Equity (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Statement of Stockholders' Equity [Abstract] | ||
Income tax expense (benefit) | $ 3.6 | $ 3.6 |
Consolidated Statements of Cash Flows - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Cash flows from operating activities: | ||
Net income (loss) | $ (125.7) | $ 159.3 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Impairments | 186.5 | 0.0 |
Depreciation and amortization | 305.8 | 283.4 |
Loss on secured term loan receivable | 52.9 | 0.0 |
Non-cash unit-based compensation | 19.1 | 14.7 |
(Gain) loss on derivatives recognized in net income (loss) | (8.7) | 14.7 |
Cash settlements on derivatives | 4.9 | (0.4) |
Amortization of debt issue costs, net discount (premium) of notes | 2.9 | 2.5 |
Distribution of earnings from unconsolidated affiliates | 9.7 | 9.5 |
Income from unconsolidated affiliates | (10.0) | (7.4) |
Non-cash revenue from contract restructuring | 0.0 | (45.5) |
Other operating activities | (7.9) | 13.2 |
Changes in assets and liabilities net of assets acquired and liabilities assumed: | ||
Accounts receivable, accrued revenue, and other | 270.7 | (46.7) |
Natural gas and NGLs inventory, prepaid expenses, and other | (7.4) | (40.1) |
Accounts payable, accrued product purchases, and other accrued liabilities | (171.3) | 72.1 |
Net cash provided by operating activities | 521.5 | 429.3 |
Cash flows from investing activities: | ||
Additions to property and equipment | (428.4) | (404.4) |
Other investing activities | 1.5 | 2.6 |
Net cash used in investing activities | (426.9) | (401.8) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 2,320.0 | 1,361.8 |
Payments on borrowings | (2,131.4) | (832.0) |
Payment of installment payable for EOGP acquisition | 0.0 | (250.0) |
Debt financing costs | (9.7) | 0.0 |
Conversion of restricted units, net of units withheld for taxes | (8.4) | (3.5) |
Distribution to members | (188.2) | (95.7) |
Distributions to non-controlling interests | (162.7) | (255.5) |
Contributions by non-controlling interests | 45.2 | 54.3 |
Other financing activities | (0.8) | (1.3) |
Net cash used in financing activities | (136.0) | (21.9) |
Net increase (decrease) in cash and cash equivalents | (41.4) | 5.6 |
Cash and cash equivalents, beginning of period | 100.4 | 31.2 |
Cash and cash equivalents, end of period | 59.0 | 36.8 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 103.7 | 89.1 |
Cash paid for income taxes | 1.2 | 0.4 |
Non-cash investing activities: | ||
Non-cash accrual of property and equipment | (5.8) | (5.0) |
Discounted secured term loan receivable from contract restructuring | $ 0.0 | $ 47.7 |
General |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General | (1) General In this report, the terms “Company” or “Registrant,” as well as the terms “ENLC,” “our,” “we,” “us,” or like terms, are sometimes used as abbreviated references to EnLink Midstream, LLC itself or EnLink Midstream, LLC together with its consolidated subsidiaries, including ENLK and its consolidated subsidiaries. References in this report to “EnLink Midstream Partners, LP,” the “Partnership,” “ENLK,” or like terms refer to EnLink Midstream Partners, LP itself or EnLink Midstream Partners, LP together with its consolidated subsidiaries, including the Operating Partnership and EOGP. Please read the notes to the consolidated financial statements in conjunction with the Definitions page set forth in this report prior to Part I—Financial Information.
EnLink Midstream, LLC is a publicly traded Delaware limited liability company formed in October 2013. The Company’s common units are traded on the New York Stock Exchange under the symbol “ENLC.” Transfer of EOGP Interest On January 31, 2019, ENLC transferred its 16.1% limited partner interest in EOGP to the Operating Partnership in exchange for 55,827,221 ENLK common units, resulting in the Operating Partnership owning 100% of the limited partner interests in EOGP. Simplification of the Corporate Structure On October 21, 2018, ENLK, ENLC, the General Partner, the managing member of ENLC, and NOLA Merger Sub entered into the Merger Agreement pursuant to which, on January 25, 2019, NOLA Merger Sub merged with and into ENLK, with ENLK continuing as the surviving entity and as a subsidiary of ENLC. As a result of the Merger:
effective time of the Merger and (ii) the performance of ENLC for periods on and after the effective time of the Merger.
We primarily focus on providing midstream energy services, including:
Our natural gas business includes connecting the wells of producers in our market areas to our gathering systems. Our gathering systems consist of networks of pipelines that collect natural gas from points at or near producing wells and transport it to our processing plants or to larger pipelines for further transmission. We operate processing plants that remove NGLs from the natural gas stream that is transported to the processing plants by our own gathering systems or by third-party pipelines. In conjunction with our gathering and processing business, we may purchase natural gas and NGLs from producers and other supply sources and sell that natural gas or NGLs to utilities, industrial consumers, marketers, and pipelines. Our transmission pipelines receive natural gas from our gathering systems and from third-party gathering and transmission systems and deliver natural gas to industrial end-users, utilities, and other pipelines. Our fractionators separate NGLs into separate purity products, including ethane, propane, iso-butane, normal butane, and natural gasoline. Our fractionators receive NGLs primarily through our transmission lines that transport NGLs from east Texas and from our south Louisiana processing plants. Our fractionators also have the capability to receive NGLs by truck or rail terminals. We also have agreements pursuant to which third parties transport NGLs from our west Texas and central Oklahoma operations to our NGL transmission lines that then transport the NGLs to our fractionators. In addition, we have NGL storage capacity to provide storage for customers. Our crude oil and condensate business includes the gathering and transmission of crude oil and condensate via pipelines, barges, rail, and trucks, in addition to condensate stabilization and brine disposal. We also purchase crude oil and condensate from producers and other supply sources and sell that crude oil and condensate through our terminal facilities to various markets. |
Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies | (2) Significant Accounting Policies
The accompanying consolidated financial statements are prepared in accordance with the instructions to Form 10-Q, are unaudited, and do not include all the information and disclosures required by GAAP for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of results of operations for a full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2018. Certain reclassifications were made to the financial statements for the prior period to conform to current period presentation. The effect of these reclassifications had no impact on previously reported members’ equity or net income (loss). All significant intercompany balances and transactions have been eliminated in consolidation.
Minimum Volume Commitments and Firm Transportation Contracts Certain of our gathering and processing agreements provide for quarterly or annual MVCs. Under these agreements, our customers or suppliers agree to ship and/or process a minimum volume of product on our systems over an agreed time period. If a customer or supplier under such an agreement fails to meet its MVC for a specified period, the customer is obligated to pay a contractually-determined fee based upon the shortfall between actual product volumes and the MVC for that period. Some of these agreements also contain make-up right provisions that allow a customer or supplier to utilize gathering or processing fees in excess of the MVC in subsequent periods to offset shortfall amounts in previous periods. We record revenue under MVC contracts during periods of shortfall when it is known that the customer cannot, or will not, make up the deficiency in subsequent periods. Deficiency fee revenue is included in midstream services revenue. For our firm transportation contracts, we transport commodities owned by others for a stated monthly fee for a specified monthly quantity with an additional fee based on actual volumes. We include transportation fees from firm transportation contracts in our midstream services revenue. The following table summarizes the contractually committed fees that we expect to recognize in our consolidated statements of operations, in either revenue or reductions to cost of sales, from MVC and firm transportation contractual provisions. All amounts in the table below are determined using the contractually-stated MVC or firm transportation volumes specified for each period multiplied by the relevant deficiency or reservation fee. Actual amounts could differ due to the timing of revenue recognition or reductions to cost of sales resulting from make-up right provisions included in our agreements, as well as due to nonpayment or nonperformance by our customers. These fees do not represent the shortfall amounts we expect to collect under our MVC contracts, as we generally do not expect volume shortfalls to equal the full amount of the contractual MVCs during these periods. For example, for the three and six months ended June 30, 2019, we had contractual commitments of $36.2 million and $74.7 million under our MVC contracts, respectively, and recorded $3.9 million and $7.7 million of revenue due to volume shortfalls, respectively.
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(c) Secured Term Loan Receivable In late May 2019, White Star, the counterparty to our $58.0 million second lien secured term loan receivable, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Under the original term loan agreement executed in May 2018, White Star was scheduled to make an installment payment of $19.5 million in April 2019. In November 2018 and again in February 2019, we amended the installment payment terms with the result that the single 2019 installment payment was split into two payments of $9.75 million in May 2019 and $10.75 million in October 2019. White Star defaulted on its May 2019 installment payment prior to filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code. While the outcome of the bankruptcy proceeding is uncertain, we do not believe that it is probable that White Star will be able to repay the outstanding amounts owed to us under the second lien secured term loan. As a result, we have recorded a $52.9 million loss in our consolidated statement of operations for the three and six months ended June 30, 2019, which represents a full write-down of the second lien secured term loan.
On August 29, 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which amends ASC 350-40, Internal-Use Software (“ASC 350-40”) to address a customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. ASU 2018-15 aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Specifically, the ASU amends ASC 350-40 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a cloud computing arrangement that is considered a service contract. We do not believe ASU 2018-15 will have a material impact on our financial statements, except to the extent future costs incurred in a cloud computing arrangement are capitalizable, the corresponding amortization will be included in “Operating expenses” or “General and administrative” in the consolidated statement of operations, rather than “Depreciation and amortization.” We will adopt ASU 2018-15 prospectively effective January 1, 2020. (e) Adopted Accounting Standards |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets | (3) Goodwill and Intangible Assets Goodwill In March 2014, at the time of our transactions with Devon that led us to become publicly held, we recorded goodwill in our corporate reporting unit at ENLC that was associated with the General Partner’s incentive distribution rights in ENLK. Prior to the completion of the Merger in January 2019, ENLC’s aggregate fair value of its reporting units was in excess of the consolidated book value of its assets, including all goodwill, which would not have resulted in a goodwill impairment on a consolidated basis. Upon the completion of the Merger, in accordance with ASC 350, Intangibles-Goodwill and other (“ASC 350”), the portion of goodwill on our corporate reporting unit that was previously associated with the General Partner’s incentive distribution rights in ENLK was required to be reallocated to the four remaining reporting units based on the relative fair value of each of the reporting units. Due to the application of ASC 350, we were required to allocate goodwill to reporting units at which goodwill had previously been impaired due to book value in excess of fair value. As a result of the allocated goodwill, we recognized a $186.5 million impairment related to our Louisiana segment during the first quarter of 2019, which is reflected in the consolidated statement of operations for the six months ended June 30, 2019. The table below provides a summary of our change in carrying amount of goodwill (in millions) for the six months ended June 30, 2019, by segment. For the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2018, there were no changes to the carrying amounts of goodwill.
Intangible Assets Intangible assets associated with customer relationships are amortized on a straight-line basis over the expected period of benefits of the customer relationships, which range from 5 to 20 years. The following table represents our change in carrying value of intangible assets (in millions):
The weighted average amortization period is 15.0 years. Amortization expense was $31.0 million and $30.9 million for the three months ended June 30, 2019 and 2018, respectively, and $61.9 million and $61.7 million for the six months ended June 30, 2019 and 2018, respectively. The following table summarizes our estimated aggregate amortization expense for the next five years and thereafter (in millions):
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Related Party Transactions |
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Related Party Transactions [Abstract] | |
Related Party Transactions | (4) Related Party Transactions (a) Transactions with ENLK Simplification of the Corporate Structure. On October 21, 2018, ENLK, ENLC, the General Partner, the managing member of ENLC, and NOLA Merger Sub entered into the Merger Agreement pursuant to which, on January 25, 2019, NOLA Merger Sub merged with and into ENLK, with ENLK continuing as the surviving entity and as a subsidiary of ENLC. See “Note 1—General” for more information on this transaction. Transfer of EOGP Interest. On January 31, 2019, ENLC transferred its 16.1% limited partner interest in EOGP to the Operating Partnership in exchange for 55,827,221 ENLK common units, resulting in the Operating Partnership owning 100% of the limited partner interests in EOGP. (b) Transactions with Devon On July 18, 2018, subsidiaries of Devon sold all of their equity interests in ENLK, ENLC, and the managing member of ENLC to GIP for aggregate consideration of $3.125 billion. Accordingly, Devon is no longer an affiliate of ENLK or ENLC. The sale did not affect our commercial arrangements with Devon, except that Devon agreed to extend through 2029 certain existing fixed-fee gathering and processing contracts related to the Bridgeport plant in north Texas and the Cana plant in Oklahoma. Prior to July 18, 2018, revenues from transactions with Devon are included in “Product sales—related parties” or “Midstream services—related parties” in the consolidated statement of operations. Revenues from transactions with Devon after July 18, 2018 are included in “Product sales” or “Midstream services” in the consolidated statement of operations. For the three and six months ended June 30, 2018, Devon accounted for 11.5% and 10.6%, respectively, of our revenues. (c) Transactions with Cedar Cove JV For the three and six months ended June 30, 2019, we recorded cost of sales of $5.8 million and $13.9 million, respectively, and for the three and six months ended June 30, 2018, we recorded cost of sales of $9.5 million and $22.5 million, respectively, related to our purchase of residue gas and NGLs from the Cedar Cove JV subsequent to processing at our central Oklahoma processing facilities. We had no accounts receivable balances related to transactions with the Cedar Cove JV at June 30, 2019 and $0.7 million at December 31, 2018. Additionally, we had accounts payable balances related to transactions with the Cedar Cove JV of $2.0 million and $4.3 million at June 30, 2019 and December 31, 2018, respectively. |
Leases |
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Leases | (5) Leases Effective with the adoption of ASC 842 in January 2019, we evaluate new contracts at inception to determine if the contract conveys the right to control the use of an identified asset for a period of time in exchange for periodic payments. A lease exists if we obtain substantially all of the economic benefits of an asset, and we have the right to direct the use of that asset. When a lease exists, we record a right-of-use asset that represents our right to use the asset over the lease term and a lease liability that represents our obligation to make payments over the lease term. Lease liabilities are recorded at the sum of future lease payments discounted by the collateralized rate we could obtain to lease a similar asset over a similar period, and right-of-use assets are recorded equal to the corresponding lease liability, plus any prepaid or direct costs incurred to enter the lease, less the cost of any incentives received from the lessor. The majority of our leases are for the following types of assets:
Lease balances are recorded on the consolidated balance sheets as follows (in millions):
Certain of our lease agreements have options to extend the lease for a certain period after the expiration of the initial term. We recognize the cost of a lease over the expected total term of the lease, including optional renewal periods that we can reasonably expect to exercise. We do not have material obligations whereby we guarantee a residual value on assets we lease, nor do our lease agreements impose restrictions or covenants that could affect our ability to make distributions. Lease expense is recognized on the consolidated statements of operations as “Operating expenses” and “General and administrative” depending on the nature of the leased asset. The components of total lease expense are as follows (in millions):
Other information about our leases are as follows (dollar amounts in millions, lease terms in years):
The following table summarizes the maturity of our lease liability as of June 30, 2019 (in millions):
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Leases | (5) Leases Effective with the adoption of ASC 842 in January 2019, we evaluate new contracts at inception to determine if the contract conveys the right to control the use of an identified asset for a period of time in exchange for periodic payments. A lease exists if we obtain substantially all of the economic benefits of an asset, and we have the right to direct the use of that asset. When a lease exists, we record a right-of-use asset that represents our right to use the asset over the lease term and a lease liability that represents our obligation to make payments over the lease term. Lease liabilities are recorded at the sum of future lease payments discounted by the collateralized rate we could obtain to lease a similar asset over a similar period, and right-of-use assets are recorded equal to the corresponding lease liability, plus any prepaid or direct costs incurred to enter the lease, less the cost of any incentives received from the lessor. The majority of our leases are for the following types of assets:
Lease balances are recorded on the consolidated balance sheets as follows (in millions):
Certain of our lease agreements have options to extend the lease for a certain period after the expiration of the initial term. We recognize the cost of a lease over the expected total term of the lease, including optional renewal periods that we can reasonably expect to exercise. We do not have material obligations whereby we guarantee a residual value on assets we lease, nor do our lease agreements impose restrictions or covenants that could affect our ability to make distributions. Lease expense is recognized on the consolidated statements of operations as “Operating expenses” and “General and administrative” depending on the nature of the leased asset. The components of total lease expense are as follows (in millions):
Other information about our leases are as follows (dollar amounts in millions, lease terms in years):
The following table summarizes the maturity of our lease liability as of June 30, 2019 (in millions):
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Long-Term Debt |
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Long-Term Debt | (6) Long-Term Debt As of June 30, 2019 and December 31, 2018, long-term debt consisted of the following (in millions):
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Issuance and Repayment of Senior Unsecured Notes On April 9, 2019, ENLC issued $500.0 million in aggregate principal amount of ENLC’s 5.375% senior unsecured notes due June 1, 2029 (the “2029 Notes”) at a price to the public of 100% of their face value. Interest payments on the 2029 Notes are payable on June 1 and December 1 of each year, beginning December 1, 2019. The 2029 Notes are fully and unconditionally guaranteed by ENLK. Net proceeds of approximately $496.5 million were used to repay outstanding borrowings under the Consolidated Credit Facility, including borrowings incurred on April 1, 2019 to repay at maturity all of the $400.0 million outstanding aggregate principal amount of ENLK’s 2.70% senior unsecured notes due 2019, and for general limited liability company purposes. Consolidated Credit Facility On December 11, 2018, ENLC entered into the Consolidated Credit Facility, which permits ENLC to borrow up to $1.75 billion on a revolving credit basis and includes a $500.0 million letter of credit subfacility. The Consolidated Credit Facility became available for borrowings and letters of credit upon closing of the Merger. In addition, ENLK became a guarantor under the Consolidated Credit Facility upon the closing of the Merger. In the event that ENLC defaults on the Consolidated Credit Facility, ENLK will be liable for the entire outstanding balance ($200.0 million as of June 30, 2019), and 105% of the outstanding letters of credit under the Consolidated Credit Facility ($5.0 million as of June 30, 2019). The obligations under the Consolidated Credit Facility are unsecured. The Consolidated Credit Facility includes provisions for additional financial institutions to become lenders, or for any existing lender to increase its revolving commitment thereunder, subject to an aggregate maximum of $2.25 billion for all commitments under the Consolidated Credit Facility. The Consolidated Credit Facility will mature on January 25, 2024, unless ENLC requests, and the requisite lenders agree, to extend it pursuant to its terms. The Consolidated Credit Facility contains certain financial, operational, and legal covenants. The financial covenants are tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. The financial covenants include (i) maintaining a ratio of consolidated EBITDA (as defined in the Consolidated Credit Facility, which term includes projected EBITDA from certain capital expansion projects) to consolidated interest charges of no less than 2.5 to 1.0 at all times prior to the occurrence of an investment grade event (as defined in the Consolidated Credit Facility) and (ii) maintaining a ratio of consolidated indebtedness to consolidated EBITDA of no more than 5.0 to 1.0. If ENLC consummates one or more acquisitions in which the aggregate purchase price is $50.0 million or more, ENLC can elect to increase the maximum allowed ratio of consolidated indebtedness to consolidated EBITDA to 5.5 to 1.0 for the quarter in which the acquisition occurs and the three subsequent quarters. Borrowings under the Consolidated Credit Facility bear interest at ENLC’s option at the Eurodollar Rate (the LIBOR Rate) plus an applicable margin (ranging from 1.125% to 2.00%) or the Base Rate (the highest of the Federal Funds Rate plus 0.50%, the 30-day Eurodollar Rate plus 1.0% or the administrative agent’s prime rate) plus an applicable margin (ranging from 0.125% to 1.00%). The applicable margins vary depending on ENLC’s debt rating. Upon breach by ENLC of certain covenants governing the Consolidated Credit Facility, amounts outstanding under the Consolidated Credit Facility, if any, may become due and payable immediately. At June 30, 2019, we were in compliance with and expect to be in compliance with the covenants of the Consolidated Credit Facility for at least the next twelve months. Term Loan On December 11, 2018, ENLK entered into the Term Loan with Bank of America, N.A., as Administrative Agent, Bank of Montreal and Royal Bank of Canada, as Co-Syndication Agents, Citibank, N.A. and Wells Fargo Bank, National Association, as Co-Documentation Agents, and the lenders party thereto. On December 11, 2018, ENLK borrowed $850.0 million under the Term Loan and used the net proceeds to repay obligations outstanding under the ENLK Credit Facility. Upon the closing of the Merger, ENLC assumed ENLK’s obligations under the Term Loan, and ENLK became a guarantor of the Term Loan. In the event that ENLC defaults on the Term Loan, the outstanding balance immediately becomes due, and ENLK will be liable for any amount owed on the Term Loan not paid by ENLC. The outstanding balance of the Term Loan was $850.0 million as of June 30, 2019. The obligations under the Term Loan are unsecured. The Term Loan will mature on December 10, 2021. The Term Loan contains certain financial, operational, and legal covenants. The financial covenants are tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. The financial covenants include (i) maintaining a ratio of consolidated EBITDA (as defined in the Term Loan, which term includes projected EBITDA from certain capital expansion projects) to consolidated interest charges of no less than 2.5 to 1.0 at all times prior to the occurrence of an investment grade event (as defined in the Term Loan) and (ii) maintaining a ratio of consolidated indebtedness to consolidated EBITDA of no more than 5.0 to 1.0. If ENLC consummates one or more acquisitions in which the aggregate purchase price is $50.0 million or more, ENLC can elect to increase the maximum allowed ratio of consolidated indebtedness to consolidated EBITDA to 5.5 to 1.0 for the quarter in which the acquisition occurs and the three subsequent quarters. Borrowings under the Term Loan bear interest at ENLC’s option at the Eurodollar Rate (the LIBOR Rate) plus an applicable margin (ranging from 1.0% to 1.75%) or the Base Rate (the highest of the Federal Funds Rate plus 0.5%, the 30-day Eurodollar Rate plus 1.0% or the administrative agent’s prime rate) plus an applicable margin (ranging from 0.0% to 0.75%). The applicable margins vary depending on ENLC’s debt rating. Upon breach by ENLC of certain covenants included in the Term Loan, amounts outstanding under the Term Loan may become due and payable immediately. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | (7) Income Taxes The components of our income tax benefit (provision) are as follows (in millions):
The following schedule reconciles total income tax benefit (provision) and the amount calculated by applying the statutory U.S. federal tax rate to income before income taxes (in millions):
Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred tax assets, net of deferred tax liabilities, are included in “Other assets, net” in the consolidated balance sheets at June 30, 2019. Our deferred income tax assets and liabilities as of June 30, 2019 and December 31, 2018 are as follows (in millions):
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As a result of the Merger, we acquired all issued and outstanding ENLK common units that were not already held by us or our subsidiaries in exchange for the issuance of ENLC common units. See “Note 1—General” for more information regarding this transaction. This was a taxable exchange to our unitholders, and we received a step-up in tax basis of the underlying assets acquired. In accordance with ASC 810, Consolidation, the step-up in our basis reduced our DTL by $399.0 million at the time of the Merger, and the resulting DTA will be realized over the tax-basis depreciable life of the underlying assets. As of June 30, 2019, we had federal net operating loss carryforwards of $505.5 million that represent a net deferred tax asset of $106.2 million. As of December 31, 2018, we had federal net operating loss carryforwards of $323.6 million that represent a net deferred tax asset of $67.9 million. These carryforwards will begin expiring in 2028 through 2038. Management believes that it is more likely than not that the future results of operations will generate sufficient taxable income to utilize these net operating loss carryforwards before they expire.
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Certain Provisions of the Partnership Agreement |
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Partners' Capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain Provisions of the Partnership Agreement | (8) Certain Provisions of the Partnership Agreement
Prior to the closing of the Merger, Series B Preferred Unit distributions were payable quarterly in cash at an amount equal to $0.28125 per Series B Preferred Unit (the “Cash Distribution Component”) plus an in-kind distribution equal to the greater of (A) 0.0025 Series B Preferred Units per Series B Preferred Unit and (B) an amount equal to (i) the excess, if any, of the distribution that would have been payable had the Series B Preferred Units converted into ENLK common units over the Cash Distribution Component, divided by (ii) the issue price of $15.00 (the “Issue Price”). Following the closing of the Merger, and beginning with the quarter ended March 31, 2019, the holder of the Series B Preferred Units is entitled to quarterly cash distributions and distributions in-kind of additional Series B Preferred Units as described below. The quarterly in-kind distribution (the “Series B PIK Distribution”) equals the greater of (A) 0.0025 Series B Preferred Units per Series B Preferred Unit and (B) the number of Series B Preferred Units equal to the quotient of (x) the excess (if any) of (1) the distribution that would have been payable by ENLC had the Series B Preferred Units been exchanged for ENLC common units but applying a one-to-one exchange ratio (subject to certain adjustments) instead of the exchange ratio of 1.15 ENLC common units for each Series B Preferred Unit, subject to certain adjustments (the “Series B Exchange Ratio”), over (2) the Cash Distribution Component, divided by (y) the Issue Price. The quarterly cash distribution consists of the Cash Distribution Component plus an amount in cash that will be determined based on a comparison of the value (applying the Issue Price) of (i) the Series B PIK Distribution and (ii) the Series B Preferred Units that would have been distributed in the Series B PIK Distribution if such calculation applied the Series B Exchange Ratio instead of the one-to-one ratio (subject to certain adjustments). A summary of the distribution activity relating to the Series B Preferred Units during the six months ended June 30, 2019 and 2018 is provided below:
Distributions on the Series C Preferred Units accrue and are cumulative from the date of original issue and payable semi-annually in arrears on the 15th day of June and December of each year through and including December 15, 2022 and, thereafter, quarterly in arrears on the 15th day of March, June, September, and December of each year, in each case, if and when declared by the General Partner out of legally available funds for such purpose. The initial distribution rate for the Series C Preferred Units from and including the date of original issue to, but not including, December 15, 2022 is 6.0% per annum. On and after December 15, 2022, distributions on the Series C Preferred Units will accumulate for each distribution period at a percentage of the $1,000 liquidation preference per unit equal to an annual floating rate of the three-month LIBOR plus a spread of 4.11%. ENLK distributed $12.0 million to holders of Series C Preferred Units during the three and six months ended June 30, 2019 and 2018, respectively.
A summary of ENLK’s distribution activity relating to the common units for periods prior to the Merger is provided below:
Prior to the closing of the Merger and for the three and six months ended June 30, 2018, net income was allocated to the General Partner in an amount equal to its incentive distribution rights. Prior to the closing of the Merger, ENLK was required to pay the General Partner incentive distributions in the amount of 13.0% of ENLK distributions in excess of $0.25 per unit, 23.0% of ENLK distributions in excess of $0.3125 per unit, and 48.0% of ENLK distributions in excess of $0.375 per unit. The General Partner was not entitled to incentive distributions with respect to (i) distributions on the Series B Preferred Units until such units converted into common units or (ii) the Series C Preferred Units. At the closing of the Merger, the General Partner’s incentive distribution rights in ENLK were eliminated. For the three and six months ended June 30, 2018, the General Partner’s share of net income consisted of incentive distribution rights to the extent earned, a deduction for unit-based compensation attributable to ENLC’s restricted units, and the percentage interest of ENLK’s net income adjusted for ENLC’s unit-based compensation specifically allocated to the General Partner. The net income allocated to the General Partner is as follows (in millions):
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Members' Equity |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Members' Equity | (9) Members' Equity (a)Issuance of ENLC Common Units related to the Merger In connection with the consummation of the Merger, we issued 304,822,035 ENLC common units in exchange for all of the outstanding ENLK common units not previously owned by us. (b)ENLC Equity Distribution Agreement On February 22, 2019, ENLC entered into the ENLC EDA with the Sales Agents to sell up to $400.0 million in aggregate gross sales of ENLC common units from time to time through an “at the market” equity offering program. Under the ENLC EDA, ENLC may also sell common units to any Sales Agent as principal for the Sales Agent’s own account at a price agreed upon at the time of sale. ENLC has no obligation to sell any ENLC common units under the ENLC EDA and may at any time suspend solicitation and offers under the ENLC EDA. As of August 7, 2019, ENLC has not sold any common units under the ENLC EDA. (c)Earnings Per Unit and Dilution Computations As required under ASC 260, Earnings Per Share, unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities for earnings per unit calculations. The following table reflects the computation of basic and diluted earnings per unit for the periods presented (in millions, except per unit amounts):
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The following are the unit amounts used to compute the basic and diluted earnings per unit for the periods presented (in millions):
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(d)Distributions A summary of our distribution activity relating to the ENLC common units for the six months ended June 30, 2019 and 2018, respectively, is provided below:
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Investment in Unconsolidated Affiliates |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated Affiliates | (10) Investment in Unconsolidated Affiliates As of June 30, 2019, our unconsolidated investments consisted of a 38.75% ownership in GCF and an approximate 30% ownership in the Cedar Cove JV. The following table shows the activity related to our investment in unconsolidated affiliates for the periods indicated (in millions):
The following table shows the balances related to our investment in unconsolidated affiliates as of June 30, 2019 and December 31, 2018 (in millions):
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Employee Incentive Plans |
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Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Incentive Plans | (11) Employee Incentive Plans
Prior to the Merger, ENLC and ENLK each had similar unit-based compensation payment plans for officers and employees. ENLC grants unit-based awards under the 2014 Plan, and ENLK granted unit-based awards under the GP Plan. As of the closing of the Merger, (i) ENLC assumed all obligations in respect of the GP Plan and the outstanding awards granted thereunder (the “Legacy ENLK Awards”) and (ii) the Legacy ENLK Awards converted into ENLC unit-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. In addition, as of the closing of the Merger, the performance metric of each Legacy ENLK Award and each then outstanding award under the 2014 Plan with performance-based vesting conditions was modified as discussed in (c) and (e) below. Following the consummation of the Merger, no additional awards will be granted under the GP Plan. We account for unit-based compensation in accordance with ASC 718, Stock Compensation (“ASC 718”), which requires that compensation related to all unit-based awards be recognized in the consolidated financial statements. Unit-based compensation cost is valued at fair value at the date of grant, and that grant date fair value is recognized as expense over each award’s requisite service period with a corresponding increase to equity or liability based on the terms of each award and the appropriate accounting treatment under ASC 718. Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions):
ENLK restricted incentive units were valued at their fair value at the date of grant, which is equal to the market value of ENLK common units on such date. A summary of the restricted incentive unit activity for the six months ended June 30, 2019 is provided below:
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A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three and six months ended June 30, 2019 and 2018 is provided below (in millions). Since the Legacy ENLK Awards converted into ENLC unit-based awards as a result of the Merger, no additional restricted incentive units will vest under the GP Plan.
Prior to the Merger, the General Partner granted performance awards under the GP Plan. The performance award agreements provided that the vesting of performance units (i.e., performance-based restricted incentive units) granted thereunder was dependent on the achievement of certain total shareholder return (“TSR”) performance goals relative to the TSR achievement of a peer group of companies (the “Peer Companies”) over the applicable performance period. The performance award agreements contemplated that the Peer Companies for an individual performance award (the “Subject Award”) were the companies comprising the AMZ, excluding ENLK and ENLC, on the grant date for the Subject Award. The performance units would vest based on the percentile ranking of the average of ENLK’s and ENLC’s TSR achievement (“EnLink TSR”) for the applicable performance period relative to the TSR achievement of the Peer Companies. As of the closing of the Merger, these performance-based Legacy ENLK Awards were modified, such that, the performance goal will, on a weighted average basis, (i) continue to relate to the EnLink TSR relative to the TSR performance of the Peer Companies in respect of periods preceding the effective time of the Merger; and (ii) relate solely to the TSR performance of ENLC relative to the TSR performance of such Peer Companies in respect of periods on and after the effective time of the Merger. At the end of the vesting period, recipients receive distribution equivalents, if any, with respect to the number of performance units vested. The vesting of performance units ranges from zero to 200% of the performance units granted depending on the extent to which the related performance goals are achieved over the relevant performance period. The fair value of each performance unit was estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all performance unit grants made under the plan: (i) a risk-free interest rate based on United States Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of ENLK’s common units and the designated Peer Companies’ securities; (iii) an estimated ranking of ENLK among the designated Peer Companies; and (iv) the distribution yield. The fair value of the performance unit on the date of grant is expensed over a vesting period of approximately three years. The following table presents a summary of the performance units:
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A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the six months ended June 30, 2019 and 2018 is provided below (in millions). Since the Legacy ENLK Awards converted into ENLC unit-based awards as a result of the Merger, no additional performance units will vest under the GP Plan. No performance units vested for the three months ended June 30, 2018.
ENLC restricted incentive units are valued at their fair value at the date of grant, which is equal to the market value of ENLC common units on such date. A summary of the restricted incentive unit activity for the six months ended June 30, 2019 is provided below:
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A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three and six months ended June 30, 2019 and 2018 is provided below (in millions):
As of June 30, 2019, there was $38.2 million of unrecognized compensation cost related to non-vested ENLC restricted incentive units. The cost is expected to be recognized over a weighted-average period of 1.9 years. For all restricted incentive unit awards granted after March 8, 2019 to certain officers and employees (the “grantee”), such awards (the “Subject Grants”) generally provide that, subject to the satisfaction of the conditions set forth in the agreement, the Subject Grants will vest on the third anniversary of the vesting commencement date (the “Regular Vesting Date”). The Subject Grants will be forfeited if the grantee’s employment or service with ENLC and its affiliates terminates prior to the Regular Vesting Date except that the Subject Grants will vest in full or on a pro-rated basis for certain terminations of employment or service prior to the Regular Vesting Date. For instance, the Subject Grants will vest on a pro-rated basis for any terminations of the grantee’s employment: (i) due to retirement, (ii) by ENLC or its affiliates without cause, or (iii) by the grantee for good reason (each, a “Covered Termination” and more particularly defined in the Subject Grants agreement) except that the Subject Grants will vest in full if the applicable Covered Termination is a “normal retirement” (as defined in the Subject Grants agreement) or the applicable Covered Termination occurs after a change of control (if any). The Subject Grants will vest in full if death or a qualifying disability occurs prior to the Regular Vesting Date.
ENLC grants performance awards under the 2014 Plan. The performance award agreements provide that the vesting of performance units (i.e., performance-based restricted incentive units) granted thereunder is dependent on the achievement of certain performance goals over the applicable performance period. At the end of the vesting period, recipients receive distribution equivalents, if any, with respect to the number of performance units vested. The vesting of units ranges from zero to 200% of the units granted depending on the extent to which the related performance goals are achieved over the relevant performance period. Performance awards granted prior to March 8, 2019 provided that the vesting of performance units granted was dependent on the achievement of certain TSR performance goals relative to the TSR achievement of the Peer Companies over the applicable performance period. Prior to the Merger, vesting of the performance units was based on the percentile ranking of the EnLink TSR for the applicable performance period relative to the TSR achievement of the Peer Companies. As of the effective time of the Merger, these performance-based awards were modified, such that, the performance goal will, on a weighted average basis, (i) continue to relate to the EnLink TSR relative to the TSR performance of the Peer Companies in respect of periods preceding the effective time of the Merger; and (ii) relate solely to the TSR performance of ENLC relative to the TSR performance of such Peer Companies in respect of periods on and after the effective time of the Merger. The following table presents a summary of the performance units:
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A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the six months ended June 30, 2019 and 2018 is provided below (in millions). No performance units vested for the three months ended June 30, 2019 and 2018, respectively.
As of June 30, 2019, there was $16.7 million of unrecognized compensation cost that related to non-vested ENLC performance units. That cost is expected to be recognized over a weighted-average period of 2.0 years. In connection with the GIP Transaction, certain outstanding performance unit agreements were modified to, among other things: (i) provide that the awards granted thereunder did not vest due to the closing of the GIP Transaction, and (ii) increase the minimum vesting of units from zero to 100% as described in our Current Report on Form 8-K filed with the Securities and Exchange Commission on July 23, 2018. The modified performance units retained the original vesting schedules. As a result of the modifications, we will recognize an additional $2.1 million compensation cost over the life of these ENLC performance units. In connection with the Merger, Legacy ENLK Awards with “performance-based” vesting and payment conditions were modified to reflect the Performance Metric Adjustment (as defined in the Merger Agreement) as described in our Current Report on Form 8-K filed with the Commission on January 29, 2019. The modified performance units retained the original vesting schedules. As a result of the modifications, we will recognize an additional $0.7 million in compensation costs over the life of the Legacy ENLK Awards. 2019 Performance Unit Awards For all performance awards granted after March 8, 2019 to the grantee, the vesting of performance units is dependent on (a) the grantee’s continued employment or service with ENLC or its affiliates for all relevant periods and (b) the TSR performance of ENLC (the “ENLC TSR”) and a performance goal based on cash flow (“Cash Flow”). At the time of grant, the Board of Directors of the managing member of ENLC (the “Board”) will determine the relative weighting of the two performance goals by including in the award agreement the number of units that will be eligible for vesting depending on the achievement of the TSR performance goals (the “Total TSR Units”) versus the achievement of the Cash Flow performance goals (the “Total CF Units”). These performance awards have four separate performance periods: (i) three performance periods are each of the first, second, and third calendar years that occur following the vesting commencement date of the performance awards and (ii) the fourth performance period is the cumulative three-year period from the vesting commencement date through the third anniversary thereof (the “Cumulative Performance Period”). One-fourth of the Total TSR Units (the “Tranche TSR Units”) relates to each of the four performance periods described above. Following the end date of a given performance period, the Governance and Compensation Committee (the “Committee”) of the Board will measure and determine the ENLC TSR relative to the TSR performance of a designated group of peer companies (the “Designated Peer Companies”) to determine the Tranche TSR Units that are eligible to vest, subject to the grantee’s continued employment or service with ENLC or its affiliates through the end date of the Cumulative Performance Period. In short, the TSR for a given performance period is defined as (i)(A) the average closing price of a common equity security at the end of the relevant performance period minus (B) the average closing price of a common equity security at the beginning of the relevant performance period plus (C) reinvested dividends divided by (ii) the average closing price of a common equity security at the beginning of the relevant performance period. The following table sets out the levels at which the Tranche TSR Units may vest (using linear interpolation) based on the ENLC TSR percentile ranking for the applicable performance period relative to the TSR achievement of the Designated Peer Companies:
Approximately one-third of the Total CF Units (the “Tranche CF Units”) relates to each of the first three performance periods described above (i.e., the Cash Flow performance goal does not relate to the Cumulative Performance Period). The Board will establish the Cash Flow performance targets for purposes of the column in the table below titled “ENLC’s Achieved Cash Flow” for each performance period no later than March 31 of the year in which the relevant performance period begins. Following the end date of a given performance period, the Committee will measure and determine the Cash Flow performance of ENLC to determine the Tranche CF Units that are eligible to vest, subject to the grantee’s continued employment or service with ENLC or its affiliates through the end of the Cumulative Performance Period. In short, the Performance-Based Award Agreement defines Cash Flow for a given performance period as (A)(i) ENLC’s adjusted EBITDA minus (ii) interest expense, current taxes and other, maintenance capital expenditures, and preferred unit accrued distributions divided by (B) the time-weighted average number of ENLC’s common units outstanding during the relevant performance period. The following table sets out the levels at which the Tranche CF Units will be eligible to vest (using linear interpolation) based on the Cash Flow performance of ENLC for the performance period ending December 31, 2019:
The fair value of each performance unit is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all performance unit grants made under the plan: (i) a risk-free interest rate based on United States Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of ENLC’s common units and the Designated Peer Companies’ or Peer Companies’ securities as applicable; (iii) an estimated ranking of ENLC among the Designated Peer Companies or Peer Companies, and (iv) the distribution yield. The fair value of the performance unit on the date of grant is expensed over a vesting period of approximately three years. The following table presents a summary of the grant-date fair value assumptions by performance unit grant date:
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | (12) Derivatives Interest Rate Swaps We periodically enter into interest rate swaps during the debt issuance process to hedge variability in future long-term debt interest payments that may result from changes in the benchmark interest rate (commonly the U.S. Treasury yield) prior to the debt being issued or to hedge variability in cash flows on our variable-rate debt. We designate interest rate swaps as cash flow hedges in accordance with ASC 815. In April 2019, we entered into an $850.0 million interest rate swap to manage the interest rate risk associated with our floating-rate, LIBOR-based borrowings. Under this arrangement, we pay a fixed interest rate of 2.27825% in exchange for LIBOR-based variable interest through December 2021. Assets or liabilities related to this interest rate swap contract are included in the fair value of derivative assets and liabilities on the consolidated balance sheets, and the change in fair value of this contract is recorded net as gain or loss on designated cash flow hedges on the consolidated statements of comprehensive income. Monthly, upon settlement, we reclassify the gain or loss associated with the interest rate swap into interest expense from accumulated other comprehensive income (loss). There is no ineffectiveness related to this hedge. In May 2017, we entered into an interest rate swap in connection with the issuance of ENLK’s 2047 Notes. Upon settlement of the interest rate swap in May 2017, we recorded the associated $2.2 million settlement loss in accumulated comprehensive loss on the consolidated balance sheets. We will amortize the settlement loss into interest expense on the consolidated statements of operations over the term of the 2047 Notes. There was no ineffectiveness related to the hedge. For the three and six months ended June 30, 2019, we recorded $9.9 million, net of a tax benefit of $3.6 million, into accumulated other comprehensive loss related to changes in fair value of our interest rate swaps. For the three and six months ended June 30, 2019, we realized a gain of $0.3 million related to the monthly settlement of our interest rate swaps and an immaterial amount of amortization, which we recorded into interest expense, net of interest income from accumulated other comprehensive loss. For the three and six months ended June 30, 2018, we recorded an immaterial amount into interest expense, net of interest income from accumulated other comprehensive loss. We expect to recognize $3.4 million of interest expense out of accumulated other comprehensive loss over the next twelve months. The fair value of our interest rate swaps included in our consolidated balance sheets were as follows (in millions):
Commodity Swaps We manage our exposure to changes in commodity prices by hedging the impact of market fluctuations. Commodity swaps are used both to manage and hedge price and location risk related to these market exposures and to manage margins on offsetting fixed-price purchase or sale commitments for physical quantities of crude, condensate, natural gas, and NGLs. We do not designate commodity swaps as cash flow or fair value hedges for hedge accounting treatment under ASC 815. Therefore, changes in the fair value of our derivatives are recorded in revenue in the period incurred. In addition, our commodity risk management policy does not allow us to take speculative positions with our derivative contracts. We commonly enter into index (float-for-float) or fixed-for-float swaps in order to mitigate our cash flow exposure to fluctuations in the future prices of natural gas, NGLs, and crude oil. For natural gas, index swaps are used to protect against the price exposure of daily priced gas versus first-of-month priced gas. For condensate, crude oil, and natural gas, index swaps are also used to hedge the basis location price risk resulting from supply and markets being priced on different indices. For natural gas, NGLs, condensate, and crude oil, fixed-for-float swaps are used to protect cash flows against price fluctuations: (1) where we receive a percentage of liquids as a fee for processing third-party gas or where we receive a portion of the proceeds of the sales of natural gas and liquids as a fee, (2) in the natural gas processing and fractionation components of our business and (3) where we are mitigating the price risk for product held in inventory or storage. Assets and liabilities related to our commodity swap contracts are included in the fair value of derivative assets and liabilities, and the change in fair value of these contracts is recorded net as a gain (loss) on derivative activity in “Gain (loss) on derivative activity” in the consolidated statements of operations. We estimate the fair value of all of our derivative contracts based upon actively-quoted prices of the underlying commodities. The components of gain (loss) on derivative activity in the consolidated statements of operations related to commodity swaps are (in millions):
The fair value of derivative assets and liabilities related to commodity swaps are as follows (in millions):
Set forth below are the summarized notional volumes and fair values of all instruments held for price risk management purposes and related physical offsets at June 30, 2019 (in millions). The remaining term of the contracts extend no later than December 2022.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | (13) Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), sets forth a framework for measuring fair value and required disclosures about fair value measurements of assets and liabilities. Fair value under ASC 820 is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, use of unobservable prices or inputs are used to estimate the current fair value, often using an internal valuation model. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the item being valued. ASC 820 established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Our derivative contracts primarily consist of commodity swap contracts and interest rate swap contracts, which are not traded on a public exchange. The fair values of commodity swap contracts and interest rate swap contracts are determined using discounted cash flow techniques. The techniques incorporate Level 1 and Level 2 inputs for future commodity prices and interest rates that are readily available in public markets or can be derived from information available in publicly-quoted markets. These market inputs are utilized in the discounted cash flow calculation considering the instrument’s term, notional amount, discount rate, and credit risk and are classified as Level 2 in hierarchy. Net assets measured at fair value on a recurring basis are summarized below (in millions):
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Fair Value of Financial Instruments The estimated fair value of our financial instruments has been determined using available market information and valuation methodologies. Considerable judgment is required to develop the estimates of fair value; thus, the estimates provided below are not necessarily indicative of the amount we could realize upon the sale or refinancing of such financial instruments (in millions):
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The carrying amounts of our cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term maturities of these assets and liabilities. As of June 30, 2019, we had total borrowings under senior unsecured notes of $3.6 billion maturing between 2024 and 2047 with fixed interest rates ranging from 4.15% to 5.60%. As of December 31, 2018, we had total borrowings under senior unsecured notes of $3.5 billion maturing between 2019 and 2047 with fixed interest rates ranging from 2.70% to 5.60%. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | (14) Segment Information Effective January 1, 2019, we changed our reportable operating segments to reflect how we currently make financial decisions and allocate resources. As of December 31, 2018, our reportable operating segments consisted of the following: (i) natural gas gathering, processing, transmission, and fractionation operations located in north Texas and the Permian Basin primarily in west Texas, (ii) natural gas pipelines, processing plants, storage facilities, NGL pipelines, and fractionation assets in Louisiana, (iii) natural gas gathering and processing operations located throughout Oklahoma, and (iv) crude rail, truck, pipeline, and barge facilities in west Texas, south Texas, Louisiana, Oklahoma, and ORV. Effective January 1, 2019, we are reporting financial performance in five segments: Permian, North Texas, Oklahoma, Louisiana, and Corporate. Crude and condensate operations are combined regionally with natural gas and NGL operations in the Oklahoma and Permian segments, and ORV operations are included in the Louisiana segment. We have recast the segment information for the three and six months ended June 30, 2018 to conform to the current period presentation. Identification of the majority of our operating segments is based principally upon geographic regions served:
We evaluate the performance of our operating segments based on segment profits. Summarized financial information for our reportable segments is shown in the following tables (in millions):
The following table reconciles the segment profits reported above to the operating income (loss) as reported on the consolidated statements of operations (in millions):
The table below represents information about segment assets as of June 30, 2019 and December 31, 2018 (in millions):
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Other Information |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Information | (15) Other Information The following tables present additional detail for other current assets and other current liabilities, which consists of the following (in millions):
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Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with the instructions to Form 10-Q, are unaudited, and do not include all the information and disclosures required by GAAP for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of results of operations for a full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2018. Certain reclassifications were made to the financial statements for the prior period to conform to current period presentation. The effect of these reclassifications had no impact on previously reported members’ equity or net income (loss). All significant intercompany balances and transactions have been eliminated in consolidation.
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Revenue Recognition | Revenue Recognition Minimum Volume Commitments and Firm Transportation Contracts Certain of our gathering and processing agreements provide for quarterly or annual MVCs. Under these agreements, our customers or suppliers agree to ship and/or process a minimum volume of product on our systems over an agreed time period. If a customer or supplier under such an agreement fails to meet its MVC for a specified period, the customer is obligated to pay a contractually-determined fee based upon the shortfall between actual product volumes and the MVC for that period. Some of these agreements also contain make-up right provisions that allow a customer or supplier to utilize gathering or processing fees in excess of the MVC in subsequent periods to offset shortfall amounts in previous periods. We record revenue under MVC contracts during periods of shortfall when it is known that the customer cannot, or will not, make up the deficiency in subsequent periods. Deficiency fee revenue is included in midstream services revenue. For our firm transportation contracts, we transport commodities owned by others for a stated monthly fee for a specified monthly quantity with an additional fee based on actual volumes. We include transportation fees from firm transportation contracts in our midstream services revenue. The following table summarizes the contractually committed fees that we expect to recognize in our consolidated statements of operations, in either revenue or reductions to cost of sales, from MVC and firm transportation contractual provisions. All amounts in the table below are determined using the contractually-stated MVC or firm transportation volumes specified for each period multiplied by the relevant deficiency or reservation fee. Actual amounts could differ due to the timing of revenue recognition or reductions to cost of sales resulting from make-up right provisions included in our agreements, as well as due to nonpayment or nonperformance by our customers. These fees do not represent the shortfall amounts we expect to collect under our MVC contracts, as we generally do not expect volume shortfalls to equal the full amount of the contractual MVCs during these periods. For example, for the three and six months ended June 30, 2019, we had contractual commitments of $36.2 million and $74.7 million under our MVC contracts, respectively, and recorded $3.9 million and $7.7 million of revenue due to volume shortfalls, respectively.
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Accounting Standards to be Adopted in Future Periods and Adopted Accounting Standards | Accounting Standards to be Adopted in Future Periods On August 29, 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which amends ASC 350-40, Internal-Use Software (“ASC 350-40”) to address a customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. ASU 2018-15 aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Specifically, the ASU amends ASC 350-40 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a cloud computing arrangement that is considered a service contract. We do not believe ASU 2018-15 will have a material impact on our financial statements, except to the extent future costs incurred in a cloud computing arrangement are capitalizable, the corresponding amortization will be included in “Operating expenses” or “General and administrative” in the consolidated statement of operations, rather than “Depreciation and amortization.” We will adopt ASU 2018-15 prospectively effective January 1, 2020. (e) Adopted Accounting Standards |
Significant Accounting Polices (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table summarizes the contractually committed fees that we expect to recognize in our consolidated statements of operations, in either revenue or reductions to cost of sales, from MVC and firm transportation contractual provisions. All amounts in the table below are determined using the contractually-stated MVC or firm transportation volumes specified for each period multiplied by the relevant deficiency or reservation fee. Actual amounts could differ due to the timing of revenue recognition or reductions to cost of sales resulting from make-up right provisions included in our agreements, as well as due to nonpayment or nonperformance by our customers. These fees do not represent the shortfall amounts we expect to collect under our MVC contracts, as we generally do not expect volume shortfalls to equal the full amount of the contractual MVCs during these periods. For example, for the three and six months ended June 30, 2019, we had contractual commitments of $36.2 million and $74.7 million under our MVC contracts, respectively, and recorded $3.9 million and $7.7 million of revenue due to volume shortfalls, respectively.
____________________________ (1) Amounts do not represent expected shortfall under these commitments.
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The table below provides a summary of our change in carrying amount of goodwill (in millions) for the six months ended June 30, 2019, by segment. For the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2018, there were no changes to the carrying amounts of goodwill.
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Summary of Changes in Carrying Value | The following table represents our change in carrying value of intangible assets (in millions):
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Schedule of Amortization Expense | The following table summarizes our estimated aggregate amortization expense for the next five years and thereafter (in millions):
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities, Lessee | Lease balances are recorded on the consolidated balance sheets as follows (in millions):
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Lease, Cost | Lease expense is recognized on the consolidated statements of operations as “Operating expenses” and “General and administrative” depending on the nature of the leased asset. The components of total lease expense are as follows (in millions):
Other information about our leases are as follows (dollar amounts in millions, lease terms in years):
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Lessee, Operating Lease, Liability, Maturity | The following table summarizes the maturity of our lease liability as of June 30, 2019 (in millions):
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Finance Lease, Liability, Maturity | The following table summarizes the maturity of our lease liability as of June 30, 2019 (in millions):
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Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Debt | As of June 30, 2019 and December 31, 2018, long-term debt consisted of the following (in millions):
____________________________
(5) Net of amortization of $11.9 million and $16.5 million at June 30, 2019 and December 31, 2018, respectively.
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Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of our income tax benefit (provision) are as follows (in millions):
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Reconciliation of Total Income Tax Expense to Income before Income Taxes | The following schedule reconciles total income tax benefit (provision) and the amount calculated by applying the statutory U.S. federal tax rate to income before income taxes (in millions):
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Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred tax assets, net of deferred tax liabilities, are included in “Other assets, net” in the consolidated balance sheets at June 30, 2019. Our deferred income tax assets and liabilities as of June 30, 2019 and December 31, 2018 are as follows (in millions):
____________________________ (1) Includes our investment in ENLK and primarily relates to differences between the book and tax bases of property and equipment.
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Certain Provisions of the Partnership Agreement (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partners' Capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Distribution Activity | A summary of the distribution activity relating to the Series B Preferred Units during the six months ended June 30, 2019 and 2018 is provided below:
A summary of ENLK’s distribution activity relating to the common units for periods prior to the Merger is provided below:
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Incentive Distributions | For the three and six months ended June 30, 2018, the General Partner’s share of net income consisted of incentive distribution rights to the extent earned, a deduction for unit-based compensation attributable to ENLC’s restricted units, and the percentage interest of ENLK’s net income adjusted for ENLC’s unit-based compensation specifically allocated to the General Partner. The net income allocated to the General Partner is as follows (in millions):
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Members' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings per Limited Partner Unit | The following table reflects the computation of basic and diluted earnings per unit for the periods presented (in millions, except per unit amounts):
____________________________
(2) For the six months ended June 30, 2019, distributed earnings included a distribution of $0.279 per unit paid on May 14, 2019 and a declared distribution of $0.283 per unit payable on August 13, 2019. For the six months ended June 30, 2018, distributed earnings included distributions of $0.263 per unit paid on May 15, 2018 and $0.267 per unit paid on August 14, 2018.
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Schedule of Unit Amounts Used to Computer Earnings per Unit | The following are the unit amounts used to compute the basic and diluted earnings per unit for the periods presented (in millions):
___________________________ (1) All common unit equivalents were antidilutive for the three and six months ended June 30, 2019 since a net loss existed for those periods.
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Summary of Distribution Activity | A summary of our distribution activity relating to the ENLC common units for the six months ended June 30, 2019 and 2018, respectively, is provided below:
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Investment in Unconsolidated Affiliates (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity Related to Investment in Unconsolidated Affiliates | The following table shows the activity related to our investment in unconsolidated affiliates for the periods indicated (in millions):
The following table shows the balances related to our investment in unconsolidated affiliates as of June 30, 2019 and December 31, 2018 (in millions):
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Employee Incentive Plans (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Consolidated Financial Statements | Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions):
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Summary of Restricted Incentive Unit Activity | ENLC restricted incentive units are valued at their fair value at the date of grant, which is equal to the market value of ENLC common units on such date. A summary of the restricted incentive unit activity for the six months ended June 30, 2019 is provided below:
____________________________
(3) Represents Legacy ENLK Awards that were converted into ENLC unit-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. ENLK restricted incentive units were valued at their fair value at the date of grant, which is equal to the market value of ENLK common units on such date. A summary of the restricted incentive unit activity for the six months ended June 30, 2019 is provided below:
____________________________
(2) As a result of the Merger, the Legacy ENLK Awards converted into ENLC unit-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate.
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Summary of Restricted Units' Aggregate Intrinsic Value | A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three and six months ended June 30, 2019 and 2018 is provided below (in millions). Since the Legacy ENLK Awards converted into ENLC unit-based awards as a result of the Merger, no additional restricted incentive units will vest under the GP Plan.
A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three and six months ended June 30, 2019 and 2018 is provided below (in millions):
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Summary of Performance Units | The following table presents a summary of the performance units:
____________________________
A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the six months ended June 30, 2019 and 2018 is provided below (in millions). No performance units vested for the three months ended June 30, 2019 and 2018, respectively.
____________________________
A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the six months ended June 30, 2019 and 2018 is provided below (in millions). Since the Legacy ENLK Awards converted into ENLC unit-based awards as a result of the Merger, no additional performance units will vest under the GP Plan. No performance units vested for the three months ended June 30, 2018.
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Schedule of Performance Stock Vesting Levels | The following table sets out the levels at which the Tranche TSR Units may vest (using linear interpolation) based on the ENLC TSR percentile ranking for the applicable performance period relative to the TSR achievement of the Designated Peer Companies:
Approximately one-third of the Total CF Units (the “Tranche CF Units”) relates to each of the first three performance periods described above (i.e., the Cash Flow performance goal does not relate to the Cumulative Performance Period). The Board will establish the Cash Flow performance targets for purposes of the column in the table below titled “ENLC’s Achieved Cash Flow” for each performance period no later than March 31 of the year in which the relevant performance period begins. Following the end date of a given performance period, the Committee will measure and determine the Cash Flow performance of ENLC to determine the Tranche CF Units that are eligible to vest, subject to the grantee’s continued employment or service with ENLC or its affiliates through the end of the Cumulative Performance Period. In short, the Performance-Based Award Agreement defines Cash Flow for a given performance period as (A)(i) ENLC’s adjusted EBITDA minus (ii) interest expense, current taxes and other, maintenance capital expenditures, and preferred unit accrued distributions divided by (B) the time-weighted average number of ENLC’s common units outstanding during the relevant performance period. The following table sets out the levels at which the Tranche CF Units will be eligible to vest (using linear interpolation) based on the Cash Flow performance of ENLC for the performance period ending December 31, 2019:
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Summary of Grant-Date Fair Values | The following table presents a summary of the grant-date fair value assumptions by performance unit grant date:
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Derivatives (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Assets and Liabilities Related to Commodity Swaps | The fair value of derivative assets and liabilities related to commodity swaps are as follows (in millions):
The fair value of our interest rate swaps included in our consolidated balance sheets were as follows (in millions):
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Components of Gain (Loss) on Derivative Activity | The components of gain (loss) on derivative activity in the consolidated statements of operations related to commodity swaps are (in millions):
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Notional Amount and Fair Value of Derivative Instruments | Set forth below are the summarized notional volumes and fair values of all instruments held for price risk management purposes and related physical offsets at June 30, 2019 (in millions). The remaining term of the contracts extend no later than December 2022.
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Assets (Liabilities) Measured on a Recurring Basis | Net assets measured at fair value on a recurring basis are summarized below (in millions):
____________________________
(2) The fair values of commodity swaps represent the amount at which the instruments could be exchanged in a current arms-length transaction adjusted for our credit risk and/or the counterparty credit risk as required under ASC 820.
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Schedule of the Estimated Fair Value of Financial Instruments | The estimated fair value of our financial instruments has been determined using available market information and valuation methodologies. Considerable judgment is required to develop the estimates of fair value; thus, the estimates provided below are not necessarily indicative of the amount we could realize upon the sale or refinancing of such financial instruments (in millions):
____________________________
(2) In late May 2019, White Star, the counterparty to our $58.0 million second lien secured term loan receivable, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. We do not believe that it is probable that White Star will be able to repay the outstanding amounts owed to us under the second lien secured term loan. For additional information regarding this transaction, refer to “Note 2—Significant Accounting Policies.”
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Information | We evaluate the performance of our operating segments based on segment profits. Summarized financial information for our reportable segments is shown in the following tables (in millions):
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Reconciliation of Profits to Operating Income (Loss) | The following table reconciles the segment profits reported above to the operating income (loss) as reported on the consolidated statements of operations (in millions):
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Schedule of Segment Assets | The table below represents information about segment assets as of June 30, 2019 and December 31, 2018 (in millions):
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Other Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Liabilities | The following tables present additional detail for other current assets and other current liabilities, which consists of the following (in millions):
____________________________
|
General (Details) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jan. 31, 2019
shares
|
Jan. 25, 2019
USD ($)
shares
|
Jun. 30, 2019
USD ($)
|
|
Related Party Transaction [Line Items] | |||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | shares | 304,822,035 | ||
Goodwill, impairment loss | $ | $ 186.5 | ||
EnLink Midstream Partners, LP | |||
Related Party Transaction [Line Items] | |||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | shares | 55,827,221 | ||
Common units conversion ratio | 1.15 | ||
EnLink Oklahoma T.O. | |||
Related Party Transaction [Line Items] | |||
Noncontrolling interest, ownership percentage by parent | 16.10% | ||
Merger Agreement | |||
Related Party Transaction [Line Items] | |||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | shares | 304,822,035 | ||
Common units conversion ratio | 1.15 | ||
Goodwill, impairment loss | $ | $ 186.5 | ||
Increase (decrease) in deferred income taxes | $ | $ 399.0 |
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Oct. 31, 2019 |
May 31, 2019 |
May 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jan. 01, 2019 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Loss on secured term loan receivable | $ 52,900 | $ 0 | $ 52,900 | $ 0 | ||||
Lease liability | 106,000 | 106,000 | ||||||
Other assets, net | 83,200 | 83,200 | ||||||
ASU 2016-02 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Lease liability | $ 97,600 | |||||||
Other assets, net | 75,300 | |||||||
Other liabilities | $ 22,600 | |||||||
White Star | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Financing receivable, after allowance for credit loss | $ 58,000 | |||||||
Financing receivable, scheduled payment | $ 9,750 | $ 19,500 | ||||||
Forecast | White Star | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Financing receivable, scheduled payment | $ 10,750 | |||||||
Minimum Volume Contract | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Contract with customer, liability | 36,200 | 74,700 | ||||||
Contracts with customers, revenue recognition | $ 3,900 | $ 7,700 |
Significant Accounting Policies - Summary of Future Performance Obligations (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 849.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 122.0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations expected to be recognized, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 243.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations expected to be recognized, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 92.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations expected to be recognized, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 82.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations expected to be recognized, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 79.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations expected to be recognized, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 228.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations expected to be recognized, period |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, impairment loss | $ 186.5 | |||
Amortization expense | $ 31.0 | $ 30.9 | $ 61.9 | $ 61.7 |
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful life of intangible assets | 5 years | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful life of intangible assets | 20 years | |||
Weighted average | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful life of intangible assets | 15 years |
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | $ 1,310.2 |
Goodwill allocation | 0.0 |
Impairment | (186.5) |
Goodwill, end of period | 1,123.7 |
Operating Segments | Permian | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 0.0 |
Goodwill allocation | 184.6 |
Impairment | 0.0 |
Goodwill, end of period | 184.6 |
Operating Segments | North Texas | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 0.0 |
Goodwill allocation | 125.7 |
Impairment | 0.0 |
Goodwill, end of period | 125.7 |
Operating Segments | Oklahoma | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 190.3 |
Goodwill allocation | 623.1 |
Impairment | 0.0 |
Goodwill, end of period | 813.4 |
Operating Segments | Louisiana | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 0.0 |
Goodwill allocation | 186.5 |
Impairment | (186.5) |
Goodwill, end of period | 0.0 |
Corporate | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 1,119.9 |
Goodwill allocation | (1,119.9) |
Impairment | 0.0 |
Goodwill, end of period | $ 0.0 |
Goodwill and Intangible Assets - Changes in Carrying Value (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Finite-lived Intangible Assets [Roll Forward] | ||||
Accumulated Amortization, Beginning Balance | $ (422.2) | |||
Amortization expense | $ (31.0) | $ (30.9) | (61.9) | $ (61.7) |
Accumulated Amortization, Ending Balance | (484.1) | (484.1) | ||
Net Carrying Amount, Ending Balance | 1,311.7 | 1,311.7 | ||
Customer relationships | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Gross Carrying Amount, Beginning Balance | 1,795.8 | |||
Accumulated Amortization, Beginning Balance | (422.2) | |||
Net Carrying Amount, Beginning Balance | 1,373.6 | |||
Amortization expense | (61.9) | |||
Gross Carrying Amount, Ending Balance | 1,795.8 | 1,795.8 | ||
Accumulated Amortization, Ending Balance | (484.1) | (484.1) | ||
Net Carrying Amount, Ending Balance | $ 1,311.7 | $ 1,311.7 |
Goodwill and Intangible Assets - Amortization Expense (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 (remaining) | $ 61.8 |
2020 | 123.7 |
2021 | 123.7 |
2022 | 123.7 |
2023 | 123.6 |
Thereafter | 755.2 |
Total | $ 1,311.7 |
Related Party Transactions (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 25, 2019 |
Jul. 18, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|||||||
Related Party Transaction [Line Items] | |||||||||||||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 304,822,035 | ||||||||||||||
Cost of sales | $ 1,300,100,000 | [1] | $ 1,325,600,000 | [1] | $ 1,325,600,000 | $ 2,663,500,000 | [1] | $ 2,707,100,000 | [1] | ||||||
Accounts payable to related party | 2,000,000.0 | 2,000,000.0 | $ 4,300,000 | ||||||||||||
Devon Energy Corporation | Customer Concentration Risk | Sales Revenue, Net | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Concentration risk | 11.50% | 10.60% | |||||||||||||
Cedar Cove Joint Venture | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Cost of sales | 5,800,000 | $ 9,500,000 | 13,900,000 | $ 22,500,000 | |||||||||||
Accounts receivable balance | 0 | 0 | 700,000 | ||||||||||||
Accounts payable to related party | $ 2,000,000.0 | $ 2,000,000.0 | $ 4,300,000 | ||||||||||||
EnLink Oklahoma T.O. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Noncontrolling interest, ownership percentage by parent | 16.10% | ||||||||||||||
EnLink Oklahoma T.O. | ENLC | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Noncontrolling interest, ownership percentage by parent | 16.10% | ||||||||||||||
ENLC | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 55,827,221 | ||||||||||||||
GIP | Devon Energy Corporation | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Consideration | $ 3,125,000,000 | ||||||||||||||
|
Leases - Narrative (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Lessee, Lease, Description [Line Items] | |
Lease liability | $ 106.0 |
Right-of-use assets | 83.2 |
Office Lease | |
Lessee, Lease, Description [Line Items] | |
Lease liability | 62.5 |
Right-of-use assets | 41.5 |
Compression and Other Field Equipment | |
Lessee, Lease, Description [Line Items] | |
Lease liability | 28.2 |
Right-of-use assets | 30.1 |
Office Equipment | |
Lessee, Lease, Description [Line Items] | |
Lease liability | 0.7 |
Right-of-use assets | 0.7 |
Land | |
Lessee, Lease, Description [Line Items] | |
Lease liability | 15.0 |
Right-of-use assets | $ 13.1 |
Leases - Lease Balances on Consolidated Balance Sheet (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Finance leases: | |
Property and equipment | $ 5.2 |
Accumulated depreciation | (3.0) |
Property and equipment, net of accumulated depreciation | 2.2 |
Other current liabilities | 0.4 |
Operating leases: | |
Other assets, net | 83.2 |
Other current liabilities | 21.7 |
Other long-term liabilities | $ 84.3 |
Other Lease Information [Abstract] | |
Weighted-average remaining lease term - Finance leases | 3 months 18 days |
Weighted-average remaining lease term - Operating leases | 10 years 8 months 12 days |
Weighted-average discount rate - Finance leases | 9.30% |
Weighted-average discount rate - Operating leases | 5.20% |
Leases - Components of Total Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Finance lease expense: | ||
Amortization of right-of-use asset | $ 2.3 | $ 3.0 |
Operating lease expense: | ||
Long-term operating lease expense | 8.3 | 14.6 |
Short-term lease expense | 8.9 | 15.8 |
Variable lease expense | 1.4 | 3.0 |
Total lease expense | $ 20.9 | $ 36.4 |
Leases - Other Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Supplemental disclosures of cash flow information: | ||
Cash payments for finance leases included in cash flows from financing activities | $ 0.4 | $ 0.8 |
Cash payments for operating leases included in cash flows from operating activities | 8.2 | 15.4 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 14.6 | $ 95.2 |
Leases - Maturity (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Undiscounted finance lease liability | |
Total | $ 0.4 |
2019 (remaining) | 0.4 |
2020 | 0.0 |
2021 | 0.0 |
2022 | 0.0 |
2023 | 0.0 |
Thereafter | 0.0 |
Finance lease liability | |
Total | 0.4 |
2019 (remaining) | 0.4 |
2020 | 0.0 |
2021 | 0.0 |
2022 | 0.0 |
2023 | 0.0 |
Thereafter | 0.0 |
Undiscounted operating lease liability | |
Total | 146.5 |
2019 (remaining) | 13.5 |
2020 | 22.4 |
2021 | 16.1 |
2022 | 9.4 |
2023 | 8.9 |
Thereafter | 76.2 |
Reduction due to present value | |
Total | (40.5) |
2019 (remaining) | (2.6) |
2020 | (4.5) |
2021 | (3.8) |
2022 | (3.4) |
2023 | (3.1) |
Thereafter | (23.1) |
Operating Lease Liability [Abstract] | |
Total | 106.0 |
2019 (remaining) | 10.9 |
2020 | 17.9 |
2021 | 12.3 |
2022 | 6.0 |
2023 | 5.8 |
Thereafter | 53.1 |
Total lease liability, Total | 106.4 |
Total lease liability, 2019 (remaining) | 11.3 |
Total lease liability, 2020 | 17.9 |
Total lease liability, 2021 | 12.3 |
Total lease liability, 2022 | 6.0 |
Total lease liability, 2023 | 5.8 |
Total lease liability, Thereafter | $ 53.1 |
Long-Term Debt - Summary (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Instrument | ||
Outstanding Principal | $ 4,650.0 | $ 4,461.4 |
Premium (Discount) | (6.1) | (6.1) |
Long-Term Debt | 4,643.9 | 4,455.3 |
Debt issuance costs | (31.4) | (24.5) |
Less: Current maturities of long-term debt | 0.0 | (399.8) |
Long-term debt, net of unamortized issuance cost | 4,612.5 | 4,031.0 |
Debt issuance cost accumulated amortization | 11.9 | 16.5 |
ENLC credit facility due 2019 | ||
Debt Instrument | ||
Outstanding Principal | 0.0 | 111.4 |
Premium (Discount) | 0.0 | 0.0 |
Long-Term Debt | 0.0 | $ 111.4 |
Effective interest rate | 4.40% | |
Consolidated Credit Facility due 2024 | ||
Debt Instrument | ||
Outstanding Principal | 200.0 | $ 0.0 |
Premium (Discount) | 0.0 | 0.0 |
Long-Term Debt | $ 200.0 | 0.0 |
Effective interest rate | 4.00% | |
Term Loan Due 2021 | ||
Debt Instrument | ||
Outstanding Principal | $ 850.0 | 850.0 |
Premium (Discount) | 0.0 | 0.0 |
Long-Term Debt | $ 850.0 | $ 850.0 |
Effective interest rate | 3.90% | 3.90% |
ENLK’s 2.70% Senior unsecured notes due 2019 | ||
Debt Instrument | ||
Stated interest rate | 2.70% | |
Outstanding Principal | $ 0.0 | $ 400.0 |
Premium (Discount) | 0.0 | 0.0 |
Long-Term Debt | $ 0.0 | 400.0 |
ENLK’s 4.40% Senior unsecured notes due 2024 | ||
Debt Instrument | ||
Stated interest rate | 4.40% | |
Outstanding Principal | $ 550.0 | 550.0 |
Premium (Discount) | 1.6 | 1.8 |
Long-Term Debt | $ 551.6 | 551.8 |
ENLK’s 4.15% Senior unsecured notes due 2025 | ||
Debt Instrument | ||
Stated interest rate | 4.15% | |
Outstanding Principal | $ 750.0 | 750.0 |
Premium (Discount) | (0.8) | (0.9) |
Long-Term Debt | $ 749.2 | 749.1 |
ENLK’s 4.85% Senior unsecured notes due 2026 | ||
Debt Instrument | ||
Stated interest rate | 4.85% | |
Outstanding Principal | $ 500.0 | 500.0 |
Premium (Discount) | (0.5) | (0.5) |
Long-Term Debt | $ 499.5 | 499.5 |
ENLC's 5.375 Senior unsecured notes due 2029 | ||
Debt Instrument | ||
Stated interest rate | 5.375% | |
Outstanding Principal | $ 500.0 | 0.0 |
Premium (Discount) | 0.0 | 0.0 |
Long-Term Debt | $ 500.0 | 0.0 |
ENLK’s 5.60% Senior unsecured notes due 2044 | ||
Debt Instrument | ||
Stated interest rate | 5.375% | |
Outstanding Principal | $ 350.0 | 350.0 |
Premium (Discount) | (0.2) | (0.2) |
Long-Term Debt | $ 349.8 | 349.8 |
ENLK’s 5.05% Senior unsecured notes due 2045 | ||
Debt Instrument | ||
Stated interest rate | 5.05% | |
Outstanding Principal | $ 450.0 | 450.0 |
Premium (Discount) | (6.1) | (6.2) |
Long-Term Debt | $ 443.9 | 443.8 |
ENLK’s 5.45% Senior unsecured notes due 2047 | ||
Debt Instrument | ||
Stated interest rate | 5.45% | |
Outstanding Principal | $ 500.0 | 500.0 |
Premium (Discount) | (0.1) | (0.1) |
Long-Term Debt | $ 499.9 | $ 499.9 |
Long-Term Debt - Narrative (Details) |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Apr. 09, 2019
USD ($)
|
Dec. 11, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2019
USD ($)
|
Dec. 31, 2018 |
|
Debt Instrument | ||||||
Proceeds from borrowings | $ 496,500,000 | $ 2,320,000,000.0 | $ 1,361,800,000 | |||
ENLC's 5.375 Senior unsecured notes due 2029 | ||||||
Debt Instrument | ||||||
Stated interest rate | 5.375% | |||||
ENLK’s 2.70% Senior unsecured notes due 2019 | ||||||
Debt Instrument | ||||||
Face amount | $ 400,000,000.0 | |||||
Stated interest rate | 2.70% | |||||
Letters of credit | ||||||
Debt Instrument | ||||||
Additional amount available (not to exceed) | $ 1,750,000,000 | $ 2,250,000,000 | ||||
Line of credit facility, fair value of amount outstanding | $ 200,000,000.0 | |||||
Term Loan Due 2021 | ||||||
Debt Instrument | ||||||
Ratio of consolidated indebtedness to consolidated EBITDA | 5.0 | |||||
Maximum | ||||||
Debt Instrument | ||||||
Stated interest rate | 5.60% | |||||
Maximum | Term Loan Due 2021 | ||||||
Debt Instrument | ||||||
Ratio of consolidated indebtedness to consolidated EBITDA | 5.5 | |||||
Conditional acquisition purchase price (or more) | $ 50,000,000.0 | |||||
Minimum | ||||||
Debt Instrument | ||||||
Stated interest rate | 4.15% | 2.70% | ||||
Unsecured Debt | ENLC's 5.375 Senior unsecured notes due 2029 | ||||||
Debt Instrument | ||||||
Face amount | $ 500,000,000.0 | |||||
Stated interest rate | 5.375% | |||||
Debt instrument, percentage price of debt issued | 100.00% | |||||
Unsecured Debt | Letters of credit | ||||||
Debt Instrument | ||||||
Line of credit facility, consolidated EBITDA to consolidated interest charges, ratio | 2.5 | |||||
Ratio of consolidated indebtedness to consolidated EBITDA | 5.0 | |||||
Line of credit facility, consolidated indebtedness to consolidated EBITDA, during an acquisition period, ratio | 5.5 | |||||
Unsecured Debt | Term Loan Due 2021 | ||||||
Debt Instrument | ||||||
Face amount | $ 850,000,000.0 | $ 850,000,000.0 | ||||
Unsecured Debt | Minimum | Letters of credit | ||||||
Debt Instrument | ||||||
Conditional acquisition purchase price (or more) | $ 50,000,000.0 | |||||
Unsecured Debt | LIBOR | Maximum | Letters of credit | ||||||
Debt Instrument | ||||||
Variable rate | 2.00% | |||||
Unsecured Debt | LIBOR | Minimum | Letters of credit | ||||||
Debt Instrument | ||||||
Variable rate | 1.125% | |||||
Unsecured Debt | Federal Funds | Letters of credit | ||||||
Debt Instrument | ||||||
Variable rate | 0.50% | |||||
Unsecured Debt | Eurodollar | Letters of credit | ||||||
Debt Instrument | ||||||
Variable rate | 1.00% | |||||
Unsecured Debt | Eurodollar | Maximum | Letters of credit | ||||||
Debt Instrument | ||||||
Variable rate | 1.00% | |||||
Unsecured Debt | Eurodollar | Minimum | Letters of credit | ||||||
Debt Instrument | ||||||
Variable rate | 0.125% | |||||
Letter of Credit | Letters of credit | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | $ 500,000,000.0 | |||||
Debt instrument, covenant, percentage of letter of credits guaranteed | 105.00% | |||||
Line of Credit | Term Loan Due 2021 | ||||||
Debt Instrument | ||||||
Line of credit facility, consolidated EBITDA to consolidated interest charges, ratio | 2.5 | |||||
Line of Credit | LIBOR | Maximum | Term Loan Due 2021 | ||||||
Debt Instrument | ||||||
Variable rate | 1.75% | |||||
Line of Credit | LIBOR | Minimum | Term Loan Due 2021 | ||||||
Debt Instrument | ||||||
Variable rate | 1.00% | |||||
Line of Credit | Federal Funds | Term Loan Due 2021 | ||||||
Debt Instrument | ||||||
Variable rate | 0.50% | |||||
Line of Credit | Eurodollar | Term Loan Due 2021 | ||||||
Debt Instrument | ||||||
Variable rate | 1.00% | |||||
Line of Credit | Eurodollar | Maximum | Term Loan Due 2021 | ||||||
Debt Instrument | ||||||
Variable rate | 0.75% | |||||
Line of Credit | Eurodollar | Minimum | Term Loan Due 2021 | ||||||
Debt Instrument | ||||||
Variable rate | 0.00% | |||||
ENLC | Letter of Credit | Letters of credit | ||||||
Debt Instrument | ||||||
Line of credit facility, fair value of amount outstanding | $ 5,000,000.0 |
Income Taxes - Components of Income Tax Benefit (Provision) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Current income tax benefit (provision) | $ (0.3) | $ 0.3 | $ (1.3) | $ (0.9) |
Deferred income tax benefit (provision) | 5.7 | (6.6) | 4.9 | (12.4) |
Income tax benefit (provision) | 5.4 | (6.3) | 3.6 | (13.3) |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Expected income tax benefit (provision) based on federal statutory rate | 4.5 | (7.2) | 41.2 | (11.3) |
State income tax benefit (provision), net of federal benefit | 0.4 | (0.4) | 4.3 | (1.7) |
Non-deductible expense related to asset impairment | 0.0 | 0.0 | (43.8) | 0.0 |
Other | 0.5 | 1.3 | 1.9 | (0.3) |
Income tax benefit (provision) | $ 5.4 | $ (6.3) | $ 3.6 | $ (13.3) |
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Deferred income tax assets: | ||
Federal net operating loss carryforward | $ 106.2 | $ 67.9 |
State net operating loss carryforward | 16.6 | 11.7 |
Total deferred tax assets | 122.8 | 79.6 |
Deferred tax liabilities: | ||
Property, equipment, and intangible assets | (78.2) | (440.6) |
Other | (0.1) | (1.4) |
Total deferred tax liabilities | (78.3) | (442.0) |
Deferred tax asset (liability), net | $ 44.5 | |
Deferred tax asset (liability), net | $ (362.4) |
Income Taxes - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Issuance of common units for ENLK public common units related to the Merger | $ 399.0 | $ 0.9 | ||
Operating loss carryforwards | $ 505.5 | $ 323.6 | ||
Deferred tax assets, federal net operating loss carryforwards | $ 106.2 | $ 67.9 |
Certain Provisions of the Partnership Agreement - Narrative and Distributions (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jan. 24, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2019 |
|
Partnership agreement | ||||||||
Distribution declared/unit (in dollars per share) | $ 0.283 | $ 0.279 | $ 0.275 | $ 0.267 | $ 0.263 | $ 0.259 | $ 0.283 | |
General Partner | Incentive Distribution Level 1 | ||||||||
Partnership agreement | ||||||||
Incentive distribution for general partner | 13.00% | |||||||
Incentive distribution, conditional distribution per unit (in dollars per share) | $ 0.25 | |||||||
General Partner | Incentive Distribution Level 2 | ||||||||
Partnership agreement | ||||||||
Incentive distribution for general partner | 23.00% | |||||||
Incentive distribution, conditional distribution per unit (in dollars per share) | $ 0.3125 | |||||||
General Partner | Incentive Distribution Level 3 | ||||||||
Partnership agreement | ||||||||
Incentive distribution for general partner | 48.00% | |||||||
Incentive distribution, conditional distribution per unit (in dollars per share) | $ 0.375 | |||||||
EnLink Midstream Partners, LP | ||||||||
Partnership agreement | ||||||||
Common units conversion ratio | 1.15 | |||||||
Series B Preferred Unitholders | ||||||||
Partnership agreement | ||||||||
Distribution paid-in kind (in shares) | 148,257 | 147,887 | 425,785 | 419,678 | 416,657 | 413,658 | ||
Cash distributions | $ 17.1 | $ 16.7 | $ 16.5 | $ 16.3 | $ 16.2 | $ 16.0 | ||
Series B Preferred Unitholders | EnLink Midstream Partners, LP | ||||||||
Partnership agreement | ||||||||
Annual rate on issue price | 0.25% | |||||||
Common units conversion ratio | 1.15 | |||||||
Series C Preferred Unitholders | EnLink Midstream Partners, LP | ||||||||
Partnership agreement | ||||||||
Partners capital account, redemption price (in usd per share) | $ 1,000 | |||||||
Partners' capital account, distributions | $ 12.0 | |||||||
Common units | EnLink Midstream Partners, LP | ||||||||
Partnership agreement | ||||||||
Distribution declared/unit (in dollars per share) | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.39 | ||||
Limited Partner | Series B Preferred Unitholders | ||||||||
Partnership agreement | ||||||||
Distribution declared/unit (in dollars per share) | $ 0.28125 | |||||||
Annual rate on issue price payable in kind | 0.25% | |||||||
Shares issued, price per share (in dollars per share) | $ 15.00 | |||||||
Limited Partner | Series C Preferred Unitholders | EnLink Midstream Partners, LP | ||||||||
Partnership agreement | ||||||||
Partners' capital account, dividend rate, percentage | 6.00% | |||||||
LIBOR | Series C Preferred Unitholders | EnLink Midstream Partners, LP | ||||||||
Partnership agreement | ||||||||
Partners' capital account, distributions, variable floating rate percentage | 4.11% |
Certain Provisions of the Partnership Agreement - Allocation of Income (Details) - General Partner - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Incentive distribution | ||||
Income allocation for incentive distributions | $ 0.0 | $ 14.8 | $ 0.0 | $ 29.6 |
Unit-based compensation attributable to ENLC’s restricted and performance units | (6.4) | (4.0) | (18.5) | (8.4) |
General Partner share of net income (loss) | (0.2) | 0.4 | 0.2 | 0.6 |
General Partner interest in EOGP acquisition | 0.0 | 12.6 | 2.4 | 16.8 |
General Partner interest in net income (loss) | $ (6.6) | $ 23.8 | $ (15.9) | $ 38.6 |
Members' Equity - Computation and Distribution Activity (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 14, 2019 |
Feb. 22, 2019 |
Jan. 25, 2019 |
Aug. 14, 2018 |
May 15, 2018 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 304,822,035 | ||||||||||||
ENLC interest in net income | $ 400.0 | ||||||||||||
Distributed earnings allocated to: | |||||||||||||
Total distributed earnings | $ 139.6 | $ 49.1 | $ 250.2 | $ 97.2 | |||||||||
Undistributed loss allocated to: | |||||||||||||
Total undistributed loss | (155.7) | (21.1) | (442.6) | (56.8) | |||||||||
Net income (loss) allocated to: | |||||||||||||
Total net income (loss) | $ (16.1) | $ 28.0 | $ (192.4) | $ 40.4 | |||||||||
Basic and diluted net income (loss) per unit: | |||||||||||||
Basic (in dollars per share) | $ (0.03) | $ 0.15 | $ (0.44) | $ 0.22 | |||||||||
Diluted (in dollars per share) | (0.03) | 0.15 | (0.44) | $ 0.22 | |||||||||
Distribution declared/unit (in dollars per share) | $ 0.283 | $ 0.279 | $ 0.275 | $ 0.267 | $ 0.263 | $ 0.259 | $ 0.283 | ||||||
Distribution paid per unit (in dollars per share) | $ 0.279 | $ 0.267 | $ 0.263 | ||||||||||
Unvested restricted units | |||||||||||||
Distributed earnings allocated to: | |||||||||||||
Total distributed earnings | $ 1.8 | $ 0.8 | $ 3.0 | $ 1.3 | |||||||||
Undistributed loss allocated to: | |||||||||||||
Total undistributed loss | (2.2) | (0.3) | (5.3) | (0.7) | |||||||||
Net income (loss) allocated to: | |||||||||||||
Total net income (loss) | (0.4) | 0.5 | (2.3) | 0.6 | |||||||||
Common units | |||||||||||||
Distributed earnings allocated to: | |||||||||||||
Total distributed earnings | 137.8 | 48.3 | 247.2 | 95.9 | |||||||||
Undistributed loss allocated to: | |||||||||||||
Total undistributed loss | (153.5) | (20.8) | (437.3) | (56.1) | |||||||||
Net income (loss) allocated to: | |||||||||||||
Total net income (loss) | $ (15.7) | $ 27.5 | $ (190.1) | $ 39.8 |
Members' Equity - Components to Compute Basic and Diluted Earnings per Unit (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Basic weighted average units outstanding: | ||||
Weighted average common units outstanding (in shares) | 487.2 | 181.0 | 439.9 | 181.0 |
Diluted weighted average units outstanding: | ||||
Weighted average basic common units outstanding (in shares) | 487.2 | 181.0 | 439.9 | 181.0 |
Dilutive effect of non-vested restricted units (in shares) | 0.0 | 1.2 | 0.0 | 1.0 |
Total weighted average diluted common units outstanding (in shares) | 487.2 | 182.2 | 439.9 | 182.0 |
Investment in Unconsolidated Affiliates (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Equity method investments | |||||
Contributions | $ 0.0 | $ 0.1 | $ 0.0 | $ 0.1 | |
Distributions | 7.6 | 5.4 | 10.1 | 11.4 | |
Equity in income (loss) | 4.7 | 4.4 | 10.0 | 7.4 | |
Total investment in unconsolidated affiliates | $ 80.0 | $ 80.0 | $ 80.1 | ||
GCF | |||||
Equity method investments | |||||
Ownership interest | 38.75% | 38.75% | |||
Distributions | $ 7.4 | 5.4 | $ 9.6 | 11.1 | |
Equity in income (loss) | $ 5.2 | 4.8 | $ 10.9 | 9.4 | |
Cedar Cove JV | |||||
Equity method investments | |||||
Ownership interest | 30.00% | 30.00% | |||
Contributions | $ 0.0 | 0.1 | $ 0.0 | 0.1 | |
Distributions | 0.2 | 0.0 | 0.5 | 0.3 | |
Equity in income (loss) | (0.5) | $ (0.4) | (0.9) | $ (2.0) | |
EnLink Midstream Partners, LP | |||||
Equity method investments | |||||
Total investment in unconsolidated affiliates | 80.0 | 80.0 | 80.1 | ||
EnLink Midstream Partners, LP | GCF | |||||
Equity method investments | |||||
Total investment in unconsolidated affiliates | 43.2 | 43.2 | 41.9 | ||
EnLink Midstream Partners, LP | Cedar Cove JV | |||||
Equity method investments | |||||
Total investment in unconsolidated affiliates | $ 36.8 | $ 36.8 | $ 38.2 |
Employee Incentive Plans - Amounts Recognized in Consolidated Financial Statements (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Allocation | ||||
Compensation expense | $ 8.0 | $ 9.6 | $ 19.1 | $ 14.7 |
Amount of related income tax benefit recognized in net income | 1.9 | 1.2 | 4.4 | 1.9 |
Cost of unit-based compensation charged to operating expense | ||||
Allocation | ||||
Compensation expense | 2.1 | 2.3 | 2.4 | 4.3 |
Cost of unit-based compensation charged to general and administrative expense | ||||
Allocation | ||||
Compensation expense | 5.9 | 7.3 | 16.7 | 10.4 |
Non-controlling interest in unit-based compensation | ||||
Allocation | ||||
Compensation expense | $ 0.0 | $ 3.6 | $ 0.5 | $ 5.5 |
Employee Incentive Plans - Restricted and Performance Awards (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jul. 23, 2018 |
Mar. 31, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||||
Beginning TSR Price (in dollars per share) | $ 10.92 | $ 9.84 | ||||||
Risk-free interest rate | 2.42% | 1.72% | ||||||
Volatility factor | 33.86% | 33.50% | ||||||
Distribution yield | 9.70% | 11.50% | ||||||
EnLink Midstream Partners, LP | ||||||||
Weighted Average Grant-Date Fair Value | ||||||||
Common units conversion ratio | 1.15 | |||||||
Unvested restricted units | ||||||||
Number of Units | ||||||||
Non-vested, beginning of period (in shares) | 2,425,867 | 2,425,867 | ||||||
Granted (in shares) | 420,842 | 1,835,494 | ||||||
Vested (in shares) | (1,255,211) | |||||||
Forfeited (in shares) | (272,185) | |||||||
Converted to ENLC (in shares) | 2,103,266 | |||||||
Non-vested, end of period (in shares) | 4,837,231 | 4,837,231 | ||||||
Aggregate intrinsic value, end of period | $ 48.8 | $ 48.8 | ||||||
Weighted Average Grant-Date Fair Value | ||||||||
Non-vested, beginning of period (in dollars per share) | $ 14.62 | $ 14.62 | ||||||
Granted (in dollars per share) | 11.44 | |||||||
Vested (in dollars per share) | 10.47 | |||||||
Forfeited (in dollars per share) | 10.86 | |||||||
Converted to ENLC (in dollars per share) | 14.01 | |||||||
Non-vested, end of period (in dollars per share) | $ 14.44 | $ 14.44 | ||||||
Units withheld for payroll taxes (in shares) | 420,778 | |||||||
Fair value of units vested | $ 4.8 | |||||||
Unrecognized compensation cost related to non-vested restricted incentive units | $ 38.2 | $ 38.2 | ||||||
Unrecognized compensation costs, weighted average period for recognition | 1 year 10 months 24 days | |||||||
Vesting period | 3 years | |||||||
Unvested restricted units | ENLC | ||||||||
Weighted Average Grant-Date Fair Value | ||||||||
Aggregate intrinsic value of units vested | 0.5 | $ 0.4 | $ 12.9 | $ 9.3 | ||||
Fair value of units vested | $ 0.5 | 0.4 | $ 13.1 | 13.5 | ||||
Unvested restricted units | EnLink Midstream Partners, LP | ||||||||
Number of Units | ||||||||
Non-vested, beginning of period (in shares) | 2,556,270 | 2,556,270 | ||||||
Vested (in shares) | (722,853) | |||||||
Forfeited (in shares) | (4,490) | |||||||
Converted to ENLC (in shares) | (1,828,927) | |||||||
Non-vested, end of period (in shares) | 0 | 0 | ||||||
Weighted Average Grant-Date Fair Value | ||||||||
Non-vested, beginning of period (in dollars per share) | $ 14.43 | $ 14.43 | ||||||
Vested (in dollars per share) | 10.02 | |||||||
Forfeited (in dollars per share) | 11.93 | |||||||
Converted to ENLC (in dollars per share) | 16.11 | |||||||
Non-vested, end of period (in dollars per share) | $ 0 | $ 0 | ||||||
Units withheld for payroll taxes (in shares) | 249,201 | |||||||
Aggregate intrinsic value of units vested | $ 0.0 | 0.4 | $ 8.0 | 9.1 | ||||
Fair value of units vested | $ 0.0 | $ 0.5 | $ 7.2 | $ 13.3 | ||||
Performance units | ||||||||
Number of Units | ||||||||
Non-vested, beginning of period (in shares) | 418,149 | 418,149 | ||||||
Granted (in shares) | 931,469 | |||||||
Vested (in shares) | (161,286) | |||||||
Forfeited (in shares) | (92,422) | |||||||
Converted to ENLC (in shares) | 333,798 | |||||||
Non-vested, end of period (in shares) | 1,429,708 | 1,429,708 | ||||||
Aggregate intrinsic value, end of period | $ 14.4 | $ 14.4 | ||||||
Weighted Average Grant-Date Fair Value | ||||||||
Non-vested, beginning of period (in dollars per share) | $ 19.15 | $ 19.15 | ||||||
Granted (in dollars per share) | 13.02 | |||||||
Vested (in dollars per share) | 11.71 | |||||||
Forfeited (in dollars per share) | 20.41 | |||||||
Converted to ENLC (in dollars per share) | 25.84 | |||||||
Non-vested, end of period (in dollars per share) | $ 17.48 | $ 17.48 | ||||||
Units withheld for payroll taxes (in shares) | 62,219 | |||||||
Aggregate intrinsic value of units vested | $ 1.8 | $ 1.9 | ||||||
Fair value of units vested | $ 1.9 | 4.2 | ||||||
Unrecognized compensation cost related to non-vested restricted incentive units | $ 16.7 | $ 16.7 | ||||||
Unrecognized compensation costs, weighted average period for recognition | 2 years | |||||||
Vesting period | 3 years | |||||||
Performance units | Minimum | ||||||||
Weighted Average Grant-Date Fair Value | ||||||||
Percent of units vesting | 0.00% | 0.00% | ||||||
Performance units | Maximum | ||||||||
Weighted Average Grant-Date Fair Value | ||||||||
Percent of units vesting | 100.00% | 200.00% | ||||||
Performance units | EnLink Midstream Partners, LP | ||||||||
Number of Units | ||||||||
Non-vested, beginning of period (in shares) | 451,669 | 451,669 | ||||||
Vested (in shares) | (161,410) | |||||||
Converted to ENLC (in shares) | (290,259) | |||||||
Non-vested, end of period (in shares) | 0 | 0 | ||||||
Weighted Average Grant-Date Fair Value | ||||||||
Non-vested, beginning of period (in dollars per share) | $ 17.74 | $ 17.74 | ||||||
Vested (in dollars per share) | 10.54 | |||||||
Converted to ENLC (in dollars per share) | 28.31 | |||||||
Non-vested, end of period (in dollars per share) | $ 0 | $ 0 | ||||||
Units withheld for payroll taxes (in shares) | 62,403 | |||||||
Aggregate intrinsic value of units vested | $ 2.1 | 2.0 | ||||||
Fair value of units vested | $ 1.7 | $ 4.1 | ||||||
Compensation expense not yet recognized | $ 0.7 | $ 0.7 | ||||||
Vesting period | 3 years | |||||||
Performance units | EnLink Midstream Partners, LP | Minimum | ||||||||
Weighted Average Grant-Date Fair Value | ||||||||
Percent of units vesting | 0.00% | |||||||
Performance units | EnLink Midstream Partners, LP | Maximum | ||||||||
Weighted Average Grant-Date Fair Value | ||||||||
Percent of units vesting | 200.00% | |||||||
ENLC Performance Shares | ||||||||
Weighted Average Grant-Date Fair Value | ||||||||
Compensation expense not yet recognized | $ 2.1 | $ 2.1 |
Employee Incentive Plans - Performance Unit Awards (Details) |
Jun. 30, 2019
$ / shares
|
---|---|
Below Threshold | Performance units | |
Incentive Plans [Line Items] | |
Vesting percentage of the Tranche TSR Units | 0.00% |
Achieved ENLC TSR Position Relative to Designated Peer Companies | 25.00% |
Below Threshold | Cash Flow Performance Unit | |
Incentive Plans [Line Items] | |
Vesting percentage of the Tranche TSR Units | 0.00% |
Achieved ENLC TSR Position Relative to Designated Peer Companies | 143.00% |
Threshold | Performance units | |
Incentive Plans [Line Items] | |
Vesting percentage of the Tranche TSR Units | 50.00% |
Achieved ENLC TSR Position Relative to Designated Peer Companies | 25.00% |
Threshold | Cash Flow Performance Unit | |
Incentive Plans [Line Items] | |
Vesting percentage of the Tranche TSR Units | 50.00% |
Achieved ENLC TSR Position Relative to Designated Peer Companies | 143.00% |
Target | Performance units | |
Incentive Plans [Line Items] | |
Vesting percentage of the Tranche TSR Units | 100.00% |
Achieved ENLC TSR Position Relative to Designated Peer Companies | 50.00% |
Target | Cash Flow Performance Unit | |
Incentive Plans [Line Items] | |
Vesting percentage of the Tranche TSR Units | 100.00% |
Achieved ENLC TSR Position Relative to Designated Peer Companies | 155.00% |
Maximum | Performance units | |
Incentive Plans [Line Items] | |
Vesting percentage of the Tranche TSR Units | 200.00% |
Achieved ENLC TSR Position Relative to Designated Peer Companies | 75.00% |
Maximum | Cash Flow Performance Unit | |
Incentive Plans [Line Items] | |
Vesting percentage of the Tranche TSR Units | 200.00% |
Share-based compensation arrangement by share-based payment award, performance target percentage, per share | $ 1.72 |
Derivatives - Interest Rate Swaps (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Apr. 30, 2019 |
Dec. 31, 2018 |
May 31, 2017 |
||||||
Derivatives | ||||||||||||
Derivative, notional amount | $ 850,000,000.0 | |||||||||||
Derivative, fixed interest rate | 2.27825% | |||||||||||
Accumulated other comprehensive loss | $ 11,900,000 | $ 11,900,000 | $ 2,000,000.0 | $ 2,200,000 | ||||||||
Loss on designated cash flow hedge | [1] | 9,900,000 | [2] | $ 0 | 9,900,000 | $ 0 | ||||||
Gain on interest rate swaps | 300,000 | 300,000 | ||||||||||
Interest income (expense) expected to be reclassified out of accumulated other comprehensive income (loss) over the next twelve months | (3,400,000) | (3,400,000) | ||||||||||
Fair value of derivative liabilities—current | (5,800,000) | (5,800,000) | (21,800,000) | |||||||||
Fair value of derivative liabilities—long-term | (10,600,000) | (10,600,000) | $ (2,400,000) | |||||||||
Interest rate swaps | ||||||||||||
Derivatives | ||||||||||||
Fair value of derivative liabilities—current | (3,300,000) | (3,300,000) | ||||||||||
Fair value of derivative liabilities—long-term | (10,200,000) | (10,200,000) | ||||||||||
Net fair value of derivatives | $ (13,500,000) | $ (13,500,000) | ||||||||||
|
Derivatives - Components of Gain (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Derivatives | |||||
Gain (loss) on derivative activity | $ 6.9 | $ (15.2) | $ (15.2) | $ 8.7 | $ (14.7) |
EnLink Midstream Partners, LP | Commodity swaps | |||||
Derivatives | |||||
Change in fair value of derivatives | 7.2 | (10.5) | 5.2 | (14.0) | |
Realized gain (loss) on derivatives | (0.3) | (4.7) | 3.5 | (0.7) | |
Gain (loss) on derivative activity | $ 6.9 | $ (15.2) | $ 8.7 | $ (14.7) |
Derivatives - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivatives | ||
Fair value of derivative assets—current | $ 9.5 | $ 28.6 |
Fair value of derivative assets—long-term | 7.1 | 4.1 |
Fair value of derivative liabilities—current | (5.8) | (21.8) |
Fair value of derivative liabilities—long-term | (10.6) | (2.4) |
EnLink Midstream Partners, LP | ||
Derivatives | ||
Fair value of derivative assets—current | 9.5 | 28.6 |
Fair value of derivative assets—long-term | 7.1 | 4.1 |
Fair value of derivative liabilities—current | (2.5) | (21.8) |
Fair value of derivative liabilities—long-term | (0.4) | (2.4) |
Net fair value of derivatives | $ 13.7 | $ 8.5 |
Derivatives - Commodities (Details) - EnLink Midstream Partners, LP gal in Millions, MMBbls in Millions, MMBTU in Millions, $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019
USD ($)
MMBTU
gal
MMBbls
|
Dec. 31, 2018
USD ($)
|
|
Derivatives | ||
Fair Value | $ 13.7 | $ 8.5 |
Commodity | ||
Derivatives | ||
Fair Value | 13.7 | |
Maximum loss if counterparties fail to perform | 16.6 | |
Possible reduction in maximum loss if counterparties fail to perform | $ 13.8 | |
Commodity | NGL | Short | ||
Derivatives | ||
Notional amount (in gallons and mmbls) | gal | 24.2 | |
Fair Value | $ 3.0 | |
Commodity | NGL | Long | ||
Derivatives | ||
Notional amount (in gallons and mmbls) | gal | 15.0 | |
Fair Value | $ (0.6) | |
Commodity | Natural Gas | Short | ||
Derivatives | ||
Notional amount (in mmbtu) | MMBTU | 2.4 | |
Fair Value | $ 0.4 | |
Commodity | Natural Gas | Long | ||
Derivatives | ||
Notional amount (in mmbtu) | MMBTU | 6.3 | |
Fair Value | $ (0.4) | |
Commodity | Crude and condensate | Short | ||
Derivatives | ||
Notional amount (in gallons and mmbls) | MMBbls | 12.3 | |
Fair Value | $ 5.6 | |
Commodity | Crude and condensate | Long | ||
Derivatives | ||
Notional amount (in gallons and mmbls) | MMBbls | 0.8 | |
Fair Value | $ 5.7 |
Fair Value Measurements - Recurring (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Interest rate swaps | ||
Fair Value | ||
Fair Value | $ (13.5) | |
Level 2 | Interest rate swaps | Recurring | ||
Fair Value | ||
Fair Value | (13.5) | $ 0.0 |
Level 2 | Commodity swaps | Recurring | ||
Fair Value | ||
Fair Value | $ 13.7 | $ 8.5 |
Fair Value Measurements - Financial Instruments (Details) - USD ($) |
Jun. 30, 2019 |
May 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Fair Value | |||
Debt issuance costs | $ 31,400,000 | $ 24,500,000 | |
Senior unsecured debt | $ 3,500,000,000 | ||
Minimum | |||
Fair Value | |||
Stated interest rate | 4.15% | 2.70% | |
Maximum | |||
Fair Value | |||
Stated interest rate | 5.60% | ||
Carrying Value | |||
Fair Value | |||
Long-term debt | $ 4,612,500,000 | $ 4,430,800,000 | |
Secured term loan receivable | 0 | 51,100,000 | |
Fair Value | |||
Fair Value | |||
Long-term debt | 4,480,400,000 | 4,065,000,000.0 | |
Secured term loan receivable | 0 | $ 51,100,000 | |
EnLink Midstream Partners, LP | |||
Fair Value | |||
Senior unsecured debt | $ 3,600,000,000 | ||
Second Lien Secured Term Loan | |||
Fair Value | |||
Maximum borrowing capacity | $ 58,000,000.0 |
Segment Information - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019
segment
| |
Segment Reporting [Abstract] | |
Number of segments | 5 |
Segment Information - Financial Information and Assets (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | $ 1,703.1 | $ 1,779.9 | $ 3,480.5 | $ 3,541.1 | ||||||||
Cost of sales | (1,300.1) | [1] | $ (1,325.6) | [1] | (1,325.6) | (2,663.5) | [1] | (2,707.1) | [1] | |||
Operating expenses | (117.9) | (113.4) | (113.4) | (232.4) | (222.6) | |||||||
Gain (loss) on derivative activity | 6.9 | (15.2) | (15.2) | 8.7 | (14.7) | |||||||
Segment profit | 292.0 | 325.7 | 325.7 | 593.3 | 596.7 | |||||||
Depreciation and amortization | (153.7) | (145.3) | (145.3) | (305.8) | (283.4) | |||||||
Impairments | 0.0 | 0.0 | (186.5) | 0.0 | ||||||||
Goodwill | 1,123.7 | 1,542.2 | 1,542.2 | 1,123.7 | 1,542.2 | $ 1,310.2 | ||||||
Capital expenditures | 171.6 | 218.2 | 422.6 | 399.4 | ||||||||
Total identifiable assets | 10,393.0 | 10,393.0 | 10,694.1 | |||||||||
Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (218.7) | (279.6) | (476.0) | (477.5) | ||||||||
Cost of sales | 218.7 | 279.6 | 476.0 | 477.5 | ||||||||
Operating expenses | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Gain (loss) on derivative activity | 6.9 | (15.2) | 8.7 | (14.7) | ||||||||
Segment profit | 6.9 | (15.2) | 8.7 | (14.7) | ||||||||
Depreciation and amortization | (2.2) | (2.6) | (4.2) | (4.6) | ||||||||
Impairments | 0.0 | |||||||||||
Goodwill | 0.0 | 1,119.9 | 1,119.9 | 0.0 | 1,119.9 | 1,119.9 | ||||||
Capital expenditures | 2.4 | 1.1 | 4.0 | 2.3 | ||||||||
Total identifiable assets | 203.4 | 203.4 | 1,345.1 | |||||||||
Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 742.3 | 689.9 | 1,484.9 | 1,406.7 | ||||||||
Cost of sales | (680.5) | (633.9) | (1,356.7) | (1,308.0) | ||||||||
Operating expenses | (28.4) | (24.7) | (56.2) | (48.5) | ||||||||
Gain (loss) on derivative activity | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Segment profit | 33.4 | 31.3 | 72.0 | 50.2 | ||||||||
Depreciation and amortization | (30.1) | (27.3) | (58.0) | (54.1) | ||||||||
Impairments | 0.0 | |||||||||||
Goodwill | 184.6 | 29.3 | 29.3 | 184.6 | 29.3 | 0.0 | ||||||
Capital expenditures | 52.4 | 52.8 | 148.3 | 116.4 | ||||||||
Total identifiable assets | 2,386.1 | 2,386.1 | 2,096.8 | |||||||||
North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 149.8 | 152.8 | 324.1 | 319.8 | ||||||||
Cost of sales | (51.0) | (32.0) | (124.7) | (81.9) | ||||||||
Operating expenses | (25.8) | (28.4) | (51.5) | (56.8) | ||||||||
Gain (loss) on derivative activity | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Segment profit | 73.0 | 92.4 | 147.9 | 181.1 | ||||||||
Depreciation and amortization | (36.9) | (31.6) | (71.2) | (62.9) | ||||||||
Impairments | 0.0 | |||||||||||
Goodwill | 125.7 | 202.7 | 202.7 | 125.7 | 202.7 | 0.0 | ||||||
Capital expenditures | 27.0 | 5.5 | 31.3 | 8.0 | ||||||||
Total identifiable assets | 1,346.7 | 1,346.7 | 1,308.2 | |||||||||
Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 299.2 | 342.6 | 618.9 | 598.0 | ||||||||
Cost of sales | (159.4) | (170.1) | (343.6) | (309.4) | ||||||||
Operating expenses | (26.1) | (20.8) | (51.5) | (41.5) | ||||||||
Gain (loss) on derivative activity | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Segment profit | 113.7 | 151.7 | 223.8 | 247.1 | ||||||||
Depreciation and amortization | (47.6) | (46.4) | (93.7) | (88.5) | ||||||||
Impairments | 0.0 | |||||||||||
Goodwill | 813.4 | 190.3 | 190.3 | 813.4 | 190.3 | 190.3 | ||||||
Capital expenditures | 70.3 | 140.0 | 178.5 | 243.9 | ||||||||
Total identifiable assets | 3,881.7 | 3,881.7 | 3,209.5 | |||||||||
Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 730.5 | 874.2 | 1,528.6 | 1,694.1 | ||||||||
Cost of sales | (627.9) | (769.2) | (1,314.5) | (1,485.3) | ||||||||
Operating expenses | (37.6) | (39.5) | (73.2) | (75.8) | ||||||||
Gain (loss) on derivative activity | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Segment profit | 65.0 | 65.5 | 140.9 | 133.0 | ||||||||
Depreciation and amortization | (36.9) | (37.4) | (78.7) | (73.3) | ||||||||
Impairments | (186.5) | |||||||||||
Goodwill | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||
Capital expenditures | 19.5 | 18.8 | 60.5 | 28.8 | ||||||||
Total identifiable assets | 2,575.1 | 2,575.1 | $ 2,734.5 | |||||||||
Product sales | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 1,450.4 | 1,435.1 | 1,435.1 | 2,981.3 | 2,934.3 | |||||||
Product sales | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Product sales | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 631.8 | 545.3 | 1,248.5 | 1,160.7 | ||||||||
Product sales | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 40.6 | 23.3 | 100.5 | 68.6 | ||||||||
Product sales | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 93.1 | 64.8 | 193.3 | 136.7 | ||||||||
Product sales | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 684.9 | 801.7 | 1,439.0 | 1,568.3 | ||||||||
Product sales, Natural gas sales | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 193.8 | 217.4 | 464.3 | 473.5 | ||||||||
Product sales, Natural gas sales | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Product sales, Natural gas sales | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (1.0) | 33.5 | 35.1 | 71.2 | ||||||||
Product sales, Natural gas sales | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 31.9 | 23.3 | 82.5 | 68.6 | ||||||||
Product sales, Natural gas sales | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 60.3 | 37.9 | 121.9 | 86.0 | ||||||||
Product sales, Natural gas sales | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 102.6 | 122.7 | 224.8 | 247.7 | ||||||||
Product sales, NGL sales | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 512.6 | 631.8 | 1,103.7 | 1,242.6 | ||||||||
Product sales, NGL sales | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Product sales, NGL sales | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.8 | 0.3 | 0.6 | 0.8 | ||||||||
Product sales, NGL sales | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 8.7 | 0.0 | 18.0 | 0.0 | ||||||||
Product sales, NGL sales | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 4.3 | 3.6 | 13.2 | 5.5 | ||||||||
Product sales, NGL sales | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 498.8 | 627.9 | 1,071.9 | 1,236.3 | ||||||||
Product sales, Crude oil and condensate sales | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 744.1 | 585.9 | 1,413.3 | 1,218.2 | ||||||||
Product sales, Crude oil and condensate sales | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Product sales, Crude oil and condensate sales | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 632.0 | 511.5 | 1,212.8 | 1,088.7 | ||||||||
Product sales, Crude oil and condensate sales | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Product sales, Crude oil and condensate sales | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 28.6 | 23.3 | 58.2 | 45.2 | ||||||||
Product sales, Crude oil and condensate sales | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 83.5 | 51.1 | 142.3 | 84.3 | ||||||||
Product sales, Other | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (0.1) | |||||||||||
Product sales, Other | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | |||||||||||
Product sales, Other | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | |||||||||||
Product sales, Other | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | |||||||||||
Product sales, Other | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (0.1) | |||||||||||
Product sales, Other | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | |||||||||||
Product sales—related parties | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 27.2 | 27.2 | 0.0 | 30.8 | |||||||
Product sales—related parties | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (217.8) | (279.6) | (477.8) | (477.5) | ||||||||
Product sales—related parties | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 83.7 | 123.3 | 184.9 | 208.7 | ||||||||
Product sales—related parties | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 24.2 | 11.9 | 53.7 | 21.3 | ||||||||
Product sales—related parties | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 104.6 | 142.6 | 230.7 | 243.6 | ||||||||
Product sales—related parties | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 5.3 | 29.0 | 8.5 | 34.7 | ||||||||
Product sales, Natural gas sales, related party | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 1.9 | 0.0 | 2.4 | ||||||||
Product sales, Natural gas sales, related party | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (0.7) | 0.0 | (0.7) | 0.0 | ||||||||
Product sales, Natural gas sales, related party | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.4 | 0.0 | 0.4 | 0.0 | ||||||||
Product sales, Natural gas sales, related party | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.3 | 0.0 | 0.3 | 0.0 | ||||||||
Product sales, Natural gas sales, related party | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 1.9 | 0.0 | 2.4 | ||||||||
Product sales, Natural gas sales, related party | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Product sales, NGL sales, related party | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 25.0 | 0.0 | 27.4 | ||||||||
Product sales, NGL sales, related party | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (208.5) | (278.7) | (463.5) | (474.9) | ||||||||
Product sales, NGL sales, related party | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 76.4 | 122.9 | 173.6 | 206.8 | ||||||||
Product sales, NGL sales, related party | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 22.2 | 11.5 | 50.7 | 20.5 | ||||||||
Product sales, NGL sales, related party | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 104.6 | 140.4 | 230.7 | 240.5 | ||||||||
Product sales, NGL sales, related party | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 5.3 | 28.9 | 8.5 | 34.5 | ||||||||
Product sales, Crude oil and condensate sales, related party | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.3 | 0.0 | 1.0 | ||||||||
Product sales, Crude oil and condensate sales, related party | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (8.6) | (0.9) | (13.6) | (2.6) | ||||||||
Product sales, Crude oil and condensate sales, related party | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 6.9 | 0.4 | 10.9 | 1.9 | ||||||||
Product sales, Crude oil and condensate sales, related party | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 1.7 | 0.4 | 2.7 | 0.8 | ||||||||
Product sales, Crude oil and condensate sales, related party | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.3 | 0.0 | 0.7 | ||||||||
Product sales, Crude oil and condensate sales, related party | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.1 | 0.0 | 0.2 | ||||||||
Midstream services | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 252.7 | 142.4 | 142.4 | 499.2 | 234.6 | |||||||
Midstream services | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Midstream services | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 26.8 | 17.0 | 51.5 | 28.7 | ||||||||
Midstream services | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 85.0 | 9.0 | 169.9 | 17.1 | ||||||||
Midstream services | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 100.3 | 72.9 | 193.4 | 97.7 | ||||||||
Midstream services | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 40.6 | 43.5 | 84.4 | 91.1 | ||||||||
Midstream services, Gathering and transportation | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 136.2 | 56.7 | 282.6 | 103.9 | ||||||||
Midstream services, Gathering and transportation | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Midstream services, Gathering and transportation | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 11.3 | 7.6 | 21.6 | 13.8 | ||||||||
Midstream services, Gathering and transportation | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 49.0 | 6.8 | 112.6 | 14.6 | ||||||||
Midstream services, Gathering and transportation | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 59.2 | 25.6 | 114.5 | 41.2 | ||||||||
Midstream services, Gathering and transportation | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 16.7 | 16.7 | 33.9 | 34.3 | ||||||||
Midstream services, Processing | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 79.5 | 58.0 | 143.3 | 71.4 | ||||||||
Midstream services, Processing | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Midstream services, Processing | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 7.3 | 7.3 | 15.0 | 11.1 | ||||||||
Midstream services, Processing | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 35.7 | 2.2 | 56.8 | 2.2 | ||||||||
Midstream services, Processing | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 35.7 | 47.4 | 69.8 | 56.4 | ||||||||
Midstream services, Processing | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.8 | 1.1 | 1.7 | 1.7 | ||||||||
Midstream services, NGL services | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 10.0 | 10.3 | 21.7 | 26.9 | ||||||||
Midstream services, NGL services | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Midstream services, NGL services | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Midstream services, NGL services | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Midstream services, NGL services | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Midstream services, NGL services | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 10.0 | 10.3 | 21.7 | 26.9 | ||||||||
Midstream services, Crude services | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 23.4 | 15.0 | 46.4 | 27.9 | ||||||||
Midstream services, Crude services | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Midstream services, Crude services | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 5.3 | 0.1 | 10.5 | 0.1 | ||||||||
Midstream services, Crude services | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Midstream services, Crude services | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 5.2 | 0.0 | 9.2 | 0.1 | ||||||||
Midstream services, Crude services | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 12.9 | 14.9 | 26.7 | 27.7 | ||||||||
Midstream services, Other services | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 3.6 | 2.4 | 5.2 | 4.5 | ||||||||
Midstream services, Other services | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Midstream services, Other services | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 2.9 | 2.0 | 4.4 | 3.7 | ||||||||
Midstream services, Other services | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.3 | 0.0 | 0.5 | 0.3 | ||||||||
Midstream services, Other services | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.2 | (0.1) | (0.1) | 0.0 | ||||||||
Midstream services, Other services | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.2 | 0.5 | 0.4 | 0.5 | ||||||||
Midstream services—related parties | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | $ 175.2 | 175.2 | 0.0 | 341.4 | |||||||
Midstream services—related parties | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (0.9) | 0.0 | 1.8 | 0.0 | ||||||||
Midstream services—related parties | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 4.3 | 0.0 | 8.6 | ||||||||
Midstream services—related parties | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 108.6 | 0.0 | 212.8 | ||||||||
Midstream services—related parties | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 1.2 | 62.3 | 1.5 | 120.0 | ||||||||
Midstream services—related parties | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (0.3) | 0.0 | (3.3) | 0.0 | ||||||||
Midstream services, Gathering and transportation, related party | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 100.1 | 187.4 | ||||||||||
Midstream services, Gathering and transportation, related party | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
Midstream services, Gathering and transportation, related party | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
Midstream services, Gathering and transportation, related party | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 61.4 | 114.0 | ||||||||||
Midstream services, Gathering and transportation, related party | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 38.7 | 73.4 | ||||||||||
Midstream services, Gathering and transportation, related party | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
Midstream services, Processing, related party | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 69.9 | 143.6 | ||||||||||
Midstream services, Processing, related party | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
Midstream services, Processing, related party | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
Midstream services, Processing, related party | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 46.8 | 98.4 | ||||||||||
Midstream services, Processing, related party | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 23.1 | 45.2 | ||||||||||
Midstream services, Processing, related party | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
NGL services—related parties | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
NGL services—related parties | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.3 | 3.3 | ||||||||||
NGL services—related parties | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
NGL services—related parties | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
NGL services—related parties | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
NGL services—related parties | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (0.3) | (3.3) | ||||||||||
Midstream services, Crude services, related party | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 5.0 | 0.0 | 10.0 | ||||||||
Midstream services, Crude services, related party | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (1.2) | 0.0 | (1.5) | 0.0 | ||||||||
Midstream services, Crude services, related party | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 4.3 | 0.0 | 8.6 | ||||||||
Midstream services, Crude services, related party | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||
Midstream services, Crude services, related party | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 1.2 | 0.7 | 1.5 | 1.4 | ||||||||
Midstream services, Crude services, related party | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | $ 0.0 | 0.0 | $ 0.0 | 0.0 | ||||||||
Midstream services, Other services, related party | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.2 | 0.4 | ||||||||||
Midstream services, Other services, related party | Corporate | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
Midstream services, Other services, related party | Permian | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.0 | 0.0 | ||||||||||
Midstream services, Other services, related party | North Texas | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | 0.4 | 0.4 | ||||||||||
Midstream services, Other services, related party | Oklahoma | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | (0.2) | 0.0 | ||||||||||
Midstream services, Other services, related party | Louisiana | Operating Segments | ||||||||||||
Segment Reporting | ||||||||||||
Revenue from contracts with customers | $ 0.0 | $ 0.0 | ||||||||||
|
Segment Information - Reconciliation (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Segment Reporting [Abstract] | |||||
Segment profits | $ 292.0 | $ 325.7 | $ 325.7 | $ 593.3 | $ 596.7 |
General and administrative expenses | (32.2) | (30.4) | (83.6) | (57.9) | |
Loss on disposition of assets | (0.1) | (1.2) | (0.1) | (1.3) | |
Depreciation and amortization | (153.7) | (145.3) | $ (145.3) | (305.8) | (283.4) |
Impairments | 0.0 | 0.0 | (186.5) | 0.0 | |
Loss on secured term loan receivable | (52.9) | 0.0 | (52.9) | 0.0 | |
Operating income (loss) | $ 53.1 | $ 148.8 | $ (35.6) | $ 254.1 |
Segment Information - Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Segment Reporting | ||
Assets | $ 10,393.0 | $ 10,694.1 |
Operating Segments | Permian | ||
Segment Reporting | ||
Assets | 2,386.1 | 2,096.8 |
Operating Segments | North Texas | ||
Segment Reporting | ||
Assets | 1,346.7 | 1,308.2 |
Operating Segments | Oklahoma | ||
Segment Reporting | ||
Assets | 3,881.7 | 3,209.5 |
Operating Segments | Louisiana | ||
Segment Reporting | ||
Assets | 2,575.1 | 2,734.5 |
Corporate | ||
Segment Reporting | ||
Assets | $ 203.4 | $ 1,345.1 |
Other Information (Details) - USD ($) |
Jun. 30, 2019 |
May 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Natural gas and NGLs inventory, prepaid expenses, and other: | |||
Natural gas and NGLs inventory | $ 51,500,000 | $ 41,300,000 | |
Secured term loan receivable from contract restructuring, net of discount of $1.1 at December 31, 2018 (1) | 0 | 19,400,000 | |
Secured term loan receivable, discount | 800,000 | 1,100,000 | |
Prepaid expenses and other | 21,300,000 | 13,500,000 | |
Natural gas and NGLs inventory, prepaid expenses, and other | 72,800,000 | 74,200,000 | |
Other current liabilities: | |||
Accrued interest | 41,100,000 | 37,500,000 | |
Accrued wages and benefits, including taxes | 18,600,000 | 37,200,000 | |
Accrued ad valorem taxes | 25,800,000 | 28,100,000 | |
Capital expenditure accruals | 44,900,000 | 50,600,000 | |
Onerous performance obligations | 0 | 9,000,000.0 | |
Short-term lease liability | 22,100,000 | 1,500,000 | |
Suspense producer payments | 15,400,000 | 34,600,000 | |
Deferred revenue | 48,600,000 | 6,600,000 | |
Other | 27,000,000.0 | 43,100,000 | |
Other current liabilities | $ 243,500,000 | $ 248,200,000 | |
Second Lien Secured Term Loan | |||
Natural gas and NGLs inventory, prepaid expenses, and other: | |||
Maximum borrowing capacity | $ 58,000,000.0 |
Label | Element | Value |
---|---|---|
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 300,000 |
Noncontrolling Interest [Member] | ||
Limited Liability Company (LLC) Members' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_LimitedLiabilityCompanyLlcMembersEquityIncludingPortionAttributableToNoncontrollingInterest | 3,245,300,000 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
Limited Liability Company (LLC) Members' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_LimitedLiabilityCompanyLlcMembersEquityIncludingPortionAttributableToNoncontrollingInterest | $ (2,000,000.0) |
Common Stock [Member] | ||
Common Unit, Issued | us-gaap_CommonUnitIssued | 181,300,000 |
Limited Liability Company (LLC) Members' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_LimitedLiabilityCompanyLlcMembersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 1,731,200,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 300,000 |
Redeemable Noncontrolling Interest [Member] | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | us-gaap_RedeemableNoncontrollingInterestEquityCarryingAmount | $ 9,300,000 |
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