Delaware | 001-37365 | 47-3159268 | ||
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
4200 W. 115th Street, Suite 350 Leawood, Kansas | 66211 | |
(Address of Principal Executive Offices) | (Zip Code) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
TALLGRASS ENERGY GP, LP | ||||
By: | TEGP Management, LLC | |||
its general partner | ||||
Date: | November 4, 2015 | By: | /s/ David G. Dehaemers, Jr. | |
David G. Dehaemers, Jr. | ||||
President and Chief Executive Officer |
Exhibit No. | Document Description |
99.1 | Press release dated November 4, 2015 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except coverage and per unit data) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net income attributable to partners | $ | 42,679 | $ | 11,444 | $ | 119,897 | $ | 43,853 | |||||||
Add: | |||||||||||||||
Interest expense, net of noncontrolling interest | 3,872 | 1,414 | 11,205 | 4,848 | |||||||||||
Depreciation and amortization expense, net of noncontrolling interest | 18,826 | 9,568 | 57,661 | 26,246 | |||||||||||
Non-cash gain related to derivative instruments | (259 | ) | (395 | ) | (218 | ) | (140 | ) | |||||||
Non-cash compensation expense | 734 | 1,475 | 3,988 | 3,724 | |||||||||||
Non-cash loss from asset sales | — | — | 4,483 | — | |||||||||||
Distributions from unconsolidated investment | — | 184 | — | 1,464 | |||||||||||
Less: | |||||||||||||||
Equity in earnings of unconsolidated investment | — | — | — | (717 | ) | ||||||||||
Non-cash loss allocated to noncontrolling interest | — | — | (9,377 | ) | — | ||||||||||
Gain on remeasurement of unconsolidated investment | — | — | — | (9,388 | ) | ||||||||||
Adjusted EBITDA | $ | 65,852 | $ | 23,690 | $ | 187,639 | $ | 69,890 | |||||||
Add: | |||||||||||||||
Pony Express preferred distributions in excess of distributable cash flow attributable to Pony Express | — | 5,429 | — | 5,429 | |||||||||||
Pony Express deficiency payments received, net | 8,342 | — | 12,050 | — | |||||||||||
Less: | |||||||||||||||
Cash interest expense | (3,518 | ) | (1,008 | ) | (10,031 | ) | (3,875 | ) | |||||||
Maintenance capital expenditures | (4,659 | ) | (4,182 | ) | (9,237 | ) | (7,654 | ) | |||||||
Distributions to noncontrolling interest in excess of earnings | (11,520 | ) | — | (22,517 | ) | — | |||||||||
Cash flow attributable to predecessor operations | — | 966 | — | (3,086 | ) | ||||||||||
Distributable cash flow (DCF) | 54,497 | 24,895 | 157,904 | 60,704 | |||||||||||
Less: | |||||||||||||||
Distributions | (48,574 | ) | (21,663 | ) | (133,540 | ) | (55,035 | ) | |||||||
Amounts in excess of distributions | $ | 5,923 | $ | 3,232 | $ | 24,364 | $ | 5,669 | |||||||
Distribution coverage(1) | 1.12 | x | 1.15 | x | 1.18 | x | 1.10 | x | |||||||
Common and subordinated units outstanding(2) | 60,578 | 49,005 | 60,578 | 49,005 | |||||||||||
Distribution per common unit | $ | 0.6000 | $ | 0.4100 | $ | 1.7000 | $ | 1.1150 |
(1) | Distribution coverage for the nine months ended September 30, 2014, includes the impact of the distributions paid on the 8.05 million units issued on July 25, 2014. Excluding the impact of the distributions paid on the 8.05 million units, coverage would have been 1.17x for the nine months ended September 30, 2014. |
(2) | Common and subordinated units outstanding represent the number of units as of the date of record for the third quarter distributions in both 2014 and 2015. All subordinated units converted into common units on February 17, 2015. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Natural Gas Transportation & Logistics | |||||||||||||||
Operating income | $ | 10,499 | $ | 10,791 | $ | 32,989 | $ | 32,075 | |||||||
Add: | |||||||||||||||
Depreciation and amortization expense | 5,241 | 6,025 | 17,066 | 17,745 | |||||||||||
Non-cash gain related to derivative instruments | (259 | ) | (395 | ) | (218 | ) | (140 | ) | |||||||
Other income, net | 502 | 731 | 1,983 | 2,400 | |||||||||||
Segment Adjusted EBITDA | $ | 15,983 | $ | 17,152 | $ | 51,820 | $ | 52,080 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Crude Oil Transportation & Logistics | (in thousands) | ||||||||||||||
Operating income (loss) | $ | 44,069 | $ | (822 | ) | $ | 103,857 | $ | (2,336 | ) | |||||
Add: | |||||||||||||||
Depreciation and amortization expense, net of noncontrolling interest | 10,323 | 253 | 30,752 | 757 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (6,866 | ) | 547 | (5,880 | ) | 1,557 | |||||||||
Less: | |||||||||||||||
Non-cash loss allocated to noncontrolling interest | — | — | (9,377 | ) | — | ||||||||||
Segment Adjusted EBITDA | $ | 47,526 | $ | (22 | ) | $ | 119,352 | $ | (22 | ) | |||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Processing & Logistics | (in thousands) | ||||||||||||||
Operating (loss) income | $ | (212 | ) | $ | 5,141 | $ | 4,508 | $ | 14,459 | ||||||
Add: | |||||||||||||||
Depreciation and amortization expense, net of noncontrolling interest | 3,262 | 3,290 | 9,843 | 7,744 | |||||||||||
Non-cash loss from asset sales | — | — | 4,483 | ||||||||||||
Distributions from unconsolidated investment | — | 184 | — | 1,464 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (4 | ) | — | 7 | 55 | ||||||||||
Segment Adjusted EBITDA | $ | 3,046 | $ | 8,615 | $ | 18,841 | $ | 23,722 |
• | 100 percent of the outstanding membership interests in Tallgrass MLP GP, LLC ("TEP GP"), which owns the general partner interest in TEP as well as all of the TEP incentive distribution rights ("IDRs"). The general partner interest in TEP is represented by 834,391 general partner units, representing a 1.36 percent general partner interest in TEP at September 30, 2015. |
• | 20,000,000 common units of TEP, representing an approximately 32.57 percent limited partner interest in TEP at September 30, 2015. |
Three Months Ended | |||
September 30, 2015 | |||
TEP distributions to Tallgrass Equity(1) | |||
General partner interest | $ | 660 | |
IDRs | 11,567 | ||
TEP common units owned by Tallgrass Equity | 12,000 | ||
Total TEP distributions to Tallgrass Equity | $ | 24,227 | |
Less: | |||
Cash interest expense attributable to Tallgrass Equity | (1,020 | ) | |
Cash General and administrative expenses attributable to Tallgrass Equity | (500 | ) | |
Cash available for distribution by Tallgrass Equity | $ | 22,707 | |
Distributions to TEGP (Class A) | 6,872 | ||
Distributions to noncontrolling interests (Class B) | 15,769 | ||
Total cash distributions by Tallgrass Equity | 22,641 | ||
TEGP | |||
Distributions from Tallgrass Equity | 6,872 | ||
Less: | |||
Distributions to Class A shareholders | (6,872 | ) | |
Amounts in excess of distributions | $ | — | |
Distribution coverage | 1.00 | ||
Class A shares outstanding | 47,725 | ||
Distribution per Class A share | $ | 0.1440 |
(1) | Represents distributions expected to be received by Tallgrass Equity from TEP on or about November 13, 2015 in connection with TEP's distribution for the quarter ended September 30, 2015. |
• | our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods; |
• | the ability of our assets to generate sufficient cash flow to make distributions to our unitholders; |
• | our ability to incur and service debt and fund capital expenditures; and |
• | the viability of acquisitions and other capital expenditure projects and the returns on investment of various expansion and growth opportunities. |
September 30, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 18,705 | $ | 867 | |||
Accounts receivable, net | 52,926 | 39,768 | |||||
Receivable from related party | — | 73,393 | |||||
Gas imbalances | 862 | 2,442 | |||||
Inventories | 14,132 | 13,045 | |||||
Derivative assets at fair value | 218 | — | |||||
Prepayments and other current assets | 3,678 | 2,766 | |||||
Total Current Assets | 90,521 | 132,281 | |||||
Property, plant and equipment, net | 1,948,821 | 1,853,081 | |||||
Goodwill | 343,288 | 343,288 | |||||
Intangible asset, net | 98,502 | 104,538 | |||||
Deferred financing costs, net | 4,496 | 5,528 | |||||
Deferred charges and other assets | 15,649 | 18,481 | |||||
Total Assets | $ | 2,501,277 | $ | 2,457,197 | |||
LIABILITIES AND PARTNERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 19,627 | $ | 62,329 | |||
Accounts payable to related parties | 3,672 | 3,915 | |||||
Gas imbalances | 2,629 | 3,611 | |||||
Accrued taxes | 16,624 | 3,989 | |||||
Accrued liabilities | 8,736 | 9,384 | |||||
Deferred revenue | 19,786 | 5,468 | |||||
Other current liabilities | 3,664 | 7,872 | |||||
Total Current Liabilities | 74,738 | 96,568 | |||||
Long-term debt | 696,000 | 559,000 | |||||
Other long-term liabilities and deferred credits | 5,461 | 6,478 | |||||
Total Long-term Liabilities | 701,461 | 565,478 | |||||
Commitments and Contingencies | |||||||
Equity: | |||||||
Common unitholders (60,576,357 and 32,834,105 units issued and outstanding at September 30, 2015 and December 31, 2014, respectively) | 1,625,516 | 800,333 | |||||
Subordinated unitholder (0 and 16,200,000 units issued and outstanding at September 30, 2015 and December 31, 2014, respectively) | — | 274,133 | |||||
General partner (834,391 units issued and outstanding at September 30, 2015 and December 31, 2014) | (352,478 | ) | (35,743 | ) | |||
Total Partners’ Equity | 1,273,038 | 1,038,723 | |||||
Noncontrolling interests | $ | 452,040 | $ | 756,428 | |||
Total Equity | $ | 1,725,078 | $ | 1,795,151 | |||
Total Liabilities and Equity | $ | 2,501,277 | $ | 2,457,197 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands, except per unit amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Sales of natural gas, NGLs, and crude oil | $ | 20,252 | $ | 49,130 | $ | 62,132 | $ | 141,887 | |||||||
Natural gas transportation services | 29,431 | 30,745 | 90,620 | 95,418 | |||||||||||
Crude oil transportation services | 81,928 | — | 206,331 | — | |||||||||||
Processing and other revenues | 6,557 | 10,078 | 26,730 | 24,747 | |||||||||||
Total Revenues | 138,168 | 89,953 | 385,813 | 262,052 | |||||||||||
Operating Costs and Expenses: | |||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 18,186 | 45,767 | 54,959 | 131,187 | |||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 14,862 | 3,329 | 39,069 | 13,734 | |||||||||||
Operations and maintenance | 14,071 | 9,961 | 36,054 | 28,029 | |||||||||||
Depreciation and amortization | 20,802 | 10,071 | 61,762 | 27,905 | |||||||||||
General and administrative | 11,807 | 7,448 | 37,947 | 21,221 | |||||||||||
Taxes, other than income taxes | 5,521 | 1,797 | 16,547 | 5,392 | |||||||||||
Loss on sale of assets | — | — | 4,483 | — | |||||||||||
Total Operating Costs and Expenses | 85,249 | 78,373 | 250,821 | 227,468 | |||||||||||
Operating Income | 52,919 | 11,580 | 134,992 | 34,584 | |||||||||||
Other (Expense) Income: | |||||||||||||||
Interest expense, net | (3,871 | ) | (1,058 | ) | (11,204 | ) | (4,492 | ) | |||||||
Gain on remeasurement of unconsolidated investment | — | — | — | 9,388 | |||||||||||
Equity in earnings of unconsolidated investment | — | — | — | 717 | |||||||||||
Other income, net | 502 | 731 | 1,983 | 2,400 | |||||||||||
Total Other (Expense) Income | (3,369 | ) | (327 | ) | (9,221 | ) | 8,013 | ||||||||
Net income | 49,550 | 11,253 | 125,771 | 42,597 | |||||||||||
Net (income) loss attributable to noncontrolling interests | (6,871 | ) | 191 | (5,874 | ) | 1,256 | |||||||||
Net income attributable to partners | $ | 42,679 | $ | 11,444 | $ | 119,897 | $ | 43,853 | |||||||
Allocation of income to the limited partners: | |||||||||||||||
Net income attributable to partners | $ | 42,679 | $ | 11,444 | $ | 119,897 | $ | 43,853 | |||||||
Predecessor operations interest in net loss (income) | — | 1,134 | — | (1,508 | ) | ||||||||||
General partner interest in net income | (12,146 | ) | (1,435 | ) | (30,614 | ) | (2,912 | ) | |||||||
Common and subordinated unitholders' interest in net income | 30,533 | 11,143 | 89,283 | 39,433 | |||||||||||
Basic net income per common and subordinated unit | $ | 0.50 | $ | 0.24 | $ | 1.54 | $ | 0.92 | |||||||
Diluted net income per common and subordinated unit | $ | 0.50 | $ | 0.23 | $ | 1.52 | $ | 0.90 | |||||||
Basic average number of common and subordinated units outstanding | 60,576 | 46,855 | 57,917 | 42,770 | |||||||||||
Diluted average number of common and subordinated units outstanding | 61,536 | 47,948 | 58,884 | 43,771 |
Nine Months Ended September 30, | |||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 125,771 | $ | 42,597 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||
Depreciation and amortization | 64,624 | 28,946 | |||||
Gain on remeasurement of unconsolidated investment | — | (9,388 | ) | ||||
Noncash compensation expense | 3,988 | 3,724 | |||||
Loss on sale of assets | 4,483 | — | |||||
Changes in components of working capital: | |||||||
Accounts receivable and other | (11,538 | ) | 2,592 | ||||
Gas imbalances | 388 | 1,392 | |||||
Inventories | (5,265 | ) | (4,661 | ) | |||
Accounts payable and accrued liabilities | 6,786 | (14,990 | ) | ||||
Deferred revenue | 13,995 | 1,459 | |||||
Other operating, net | (5,748 | ) | (4,427 | ) | |||
Net Cash Provided by Operating Activities | 197,484 | 47,244 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (65,146 | ) | (642,216 | ) | |||
Acquisition of Pony Express membership interest | (700,000 | ) | (27,000 | ) | |||
Acquisition of Trailblazer | — | (150,000 | ) | ||||
Acquisition of additional equity interests in Water Solutions | — | (7,600 | ) | ||||
Issuance of related party loan | — | (270,000 | ) | ||||
Other investing, net | (4,625 | ) | (2,268 | ) | |||
Net Cash Used in Investing Activities | (769,771 | ) | (1,099,084 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from public offering, net of offering costs | 551,243 | 319,588 | |||||
Borrowings under revolving credit facility, net | 137,000 | 433,000 | |||||
Contributions from Predecessor Entities, net | — | 312,125 | |||||
Distributions to unitholders | (113,260 | ) | (46,454 | ) | |||
Contribution from Tallgrass Development, LP | — | 27,488 | |||||
Contributions from noncontrolling interests | 19,303 | 5,429 | |||||
Other financing, net | (4,161 | ) | 1,549 | ||||
Net Cash Provided by Financing Activities | 590,125 | 1,052,725 | |||||
Net Change in Cash and Cash Equivalents | 17,838 | 885 | |||||
Cash and Cash Equivalents, beginning of period | 867 | — | |||||
Cash and Cash Equivalents, end of period | $ | 18,705 | $ | 885 |
September 30, 2015 | December 31, 2014 | ||||||||||||||||||||||
TEP | Consolidating Adjustments (1) | TEGP | TEP | Consolidating Adjustments (1) | TEGP | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 18,705 | $ | 304 | $ | 19,009 | $ | 867 | $ | — | $ | 867 | |||||||||||
Accounts receivable, net | 52,926 | — | 52,926 | 39,768 | — | 39,768 | |||||||||||||||||
Receivable from related party | — | — | — | 73,393 | — | 73,393 | |||||||||||||||||
Gas imbalances | 862 | — | 862 | 2,442 | — | 2,442 | |||||||||||||||||
Inventories | 14,132 | — | 14,132 | 13,045 | — | 13,045 | |||||||||||||||||
Derivative assets at fair value | 218 | — | 218 | — | — | — | |||||||||||||||||
Prepayments and other current assets | 3,678 | — | 3,678 | 2,766 | — | 2,766 | |||||||||||||||||
Total Current Assets | 90,521 | 304 | 90,825 | 132,281 | — | 132,281 | |||||||||||||||||
Property, plant and equipment, net | 1,948,821 | — | 1,948,821 | 1,853,081 | — | 1,853,081 | |||||||||||||||||
Goodwill | 343,288 | — | 343,288 | 343,288 | — | 343,288 | |||||||||||||||||
Intangible asset, net | 98,502 | — | 98,502 | 104,538 | — | 104,538 | |||||||||||||||||
Deferred tax asset | — | 441,528 | 441,528 | — | — | — | |||||||||||||||||
Deferred financing costs, net | 4,496 | 1,618 | 6,114 | 5,528 | — | 5,528 | |||||||||||||||||
Deferred charges and other assets | 15,649 | — | 15,649 | 18,481 | — | 18,481 | |||||||||||||||||
Total Assets | $ | 2,501,277 | $ | 443,450 | $ | 2,944,727 | $ | 2,457,197 | $ | — | $ | 2,457,197 | |||||||||||
LIABILITIES AND PARTNERS’ EQUITY | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 19,627 | $ | — | $ | 19,627 | $ | 62,329 | $ | — | $ | 62,329 | |||||||||||
Accounts payable to related parties | 3,672 | (91 | ) | 3,581 | 3,915 | — | 3,915 | ||||||||||||||||
Gas imbalances | 2,629 | — | 2,629 | 3,611 | — | 3,611 | |||||||||||||||||
Accrued taxes | 16,624 | — | 16,624 | 3,989 | — | 3,989 | |||||||||||||||||
Accrued liabilities | 8,736 | 188 | 8,924 | 9,384 | — | 9,384 | |||||||||||||||||
Deferred revenue | 19,786 | — | 19,786 | 5,468 | — | 5,468 | |||||||||||||||||
Other current liabilities | 3,664 | — | 3,664 | 7,872 | — | 7,872 | |||||||||||||||||
Total Current Liabilities | 74,738 | 97 | 74,835 | 96,568 | — | 96,568 | |||||||||||||||||
Long-term debt | 696,000 | 148,000 | 844,000 | 559,000 | — | 559,000 | |||||||||||||||||
Other long-term liabilities and deferred credits | 5,461 | — | 5,461 | 6,478 | — | 6,478 | |||||||||||||||||
Total Long-term Liabilities | 701,461 | 148,000 | 849,461 | 565,478 | — | 565,478 | |||||||||||||||||
Equity: | |||||||||||||||||||||||
Total Partners' Capital | 1,273,038 | (862,132 | ) | 410,906 | 1,038,723 | (891,857 | ) | 146,866 | |||||||||||||||
Noncontrolling interests | 452,040 | 1,157,485 | 1,609,525 | 756,428 | 891,857 | 1,648,285 | |||||||||||||||||
Total Equity | $ | 1,725,078 | $ | 295,353 | $ | 2,020,431 | $ | 1,795,151 | $ | — | $ | 1,795,151 | |||||||||||
Total Liabilities and Equity | $ | 2,501,277 | $ | 443,450 | $ | 2,944,727 | $ | 2,457,197 | $ | — | $ | 2,457,197 |
(1) | Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for TEGP. |
Three Months Ended September 30, 2015 | Three Months Ended September 30, 2014 | ||||||||||||||||||||||
TEP | Consolidating Adjustments (1) | TEGP | TEP | Consolidating Adjustments (1) | TEGP | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Sales of natural gas, NGLs, and crude oil | $ | 20,252 | $ | — | $ | 20,252 | $ | 49,130 | $ | — | $ | 49,130 | |||||||||||
Natural gas transportation services | 29,431 | — | 29,431 | 30,745 | — | 30,745 | |||||||||||||||||
Crude oil transportation services | 81,928 | — | 81,928 | — | — | — | |||||||||||||||||
Processing and other revenues | 6,557 | — | 6,557 | 10,078 | — | 10,078 | |||||||||||||||||
Total Revenues | 138,168 | — | 138,168 | 89,953 | — | 89,953 | |||||||||||||||||
Operating Costs and Expenses: | |||||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 18,186 | — | 18,186 | 45,767 | — | 45,767 | |||||||||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 14,862 | — | 14,862 | 3,329 | — | 3,329 | |||||||||||||||||
Operations and maintenance | 14,071 | — | 14,071 | 9,961 | — | 9,961 | |||||||||||||||||
Depreciation and amortization | 20,802 | — | 20,802 | 10,071 | — | 10,071 | |||||||||||||||||
General and administrative | 11,807 | 514 | 12,321 | 7,448 | — | 7,448 | |||||||||||||||||
Taxes, other than income taxes | 5,521 | — | 5,521 | 1,797 | — | 1,797 | |||||||||||||||||
Loss on sale of assets | — | — | — | — | — | — | |||||||||||||||||
Total Operating Costs and Expenses | 85,249 | 514 | 85,763 | 78,373 | — | 78,373 | |||||||||||||||||
Operating Income | 52,919 | (514 | ) | 52,405 | 11,580 | — | 11,580 | ||||||||||||||||
Other (Expense) Income: | |||||||||||||||||||||||
Interest expense, net | (3,871 | ) | (1,111 | ) | (4,982 | ) | (1,058 | ) | — | (1,058 | ) | ||||||||||||
Other income, net | 502 | — | 502 | 731 | — | 731 | |||||||||||||||||
Total Other (Expense) Income | (3,369 | ) | (1,111 | ) | (4,480 | ) | (327 | ) | — | (327 | ) | ||||||||||||
Net income before tax | 49,550 | (1,625 | ) | 47,925 | 11,253 | — | 11,253 | ||||||||||||||||
Deferred income tax expense | — | (1,828 | ) | (1,828 | ) | — | — | — | |||||||||||||||
Net income | 49,550 | (3,453 | ) | 46,097 | 11,253 | — | 11,253 | ||||||||||||||||
less: Net income attributable to noncontrolling interests | (6,871 | ) | (34,803 | ) | (41,674 | ) | 191 | (9,814 | ) | (9,623 | ) | ||||||||||||
Net income attributable to TEGP | $ | 42,679 | $ | (38,256 | ) | $ | 4,423 | $ | 11,444 | $ | (9,814 | ) | $ | 1,630 | |||||||||
Basic net income per Class A share | $ | 0.09 | |||||||||||||||||||||
Diluted net income per Class A share | $ | 0.09 | |||||||||||||||||||||
Basic average number of Class A shares outstanding | 47,725 | ||||||||||||||||||||||
Diluted average number of Class A shares outstanding | 47,808 |
(1) | Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for TEGP. |
Nine Months Ended September 30, 2015 | Nine Months Ended September 30, 2014 | ||||||||||||||||||||||
TEP | Consolidating Adjustments (1) | TEGP | TEP | Consolidating Adjustments (1) | TEGP | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Sales of natural gas, NGLs, and crude oil | $ | 62,132 | $ | — | $ | 62,132 | $ | 141,887 | $ | — | $ | 141,887 | |||||||||||
Natural gas transportation services | 90,620 | — | 90,620 | 95,418 | — | 95,418 | |||||||||||||||||
Crude oil transportation services | 206,331 | — | 206,331 | — | — | — | |||||||||||||||||
Processing and other revenues | 26,730 | — | 26,730 | 24,747 | — | 24,747 | |||||||||||||||||
Total Revenues | 385,813 | — | 385,813 | 262,052 | — | 262,052 | |||||||||||||||||
Operating Costs and Expenses: | |||||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 54,959 | — | 54,959 | 131,187 | — | 131,187 | |||||||||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 39,069 | — | 39,069 | 13,734 | — | 13,734 | |||||||||||||||||
Operations and maintenance | 36,054 | — | 36,054 | 28,029 | — | 28,029 | |||||||||||||||||
Depreciation and amortization | 61,762 | — | 61,762 | 27,905 | — | 27,905 | |||||||||||||||||
General and administrative | 37,947 | 764 | 38,711 | 21,221 | — | 21,221 | |||||||||||||||||
Taxes, other than income taxes | 16,547 | — | 16,547 | 5,392 | — | 5,392 | |||||||||||||||||
Loss on sale of assets | 4,483 | — | 4,483 | — | — | — | |||||||||||||||||
Total Operating Costs and Expenses | 250,821 | 764 | 251,585 | 227,468 | — | 227,468 | |||||||||||||||||
Operating Income | 134,992 | (764 | ) | 134,228 | 34,584 | — | 34,584 | ||||||||||||||||
Other (Expense) Income: | |||||||||||||||||||||||
Interest expense, net | (11,204 | ) | (1,697 | ) | (12,901 | ) | (4,492 | ) | — | (4,492 | ) | ||||||||||||
Gain on remeasurement of unconsolidated investment | — | — | — | 9,388 | — | 9,388 | |||||||||||||||||
Equity in earnings of unconsolidated investment | — | — | — | 717 | — | 717 | |||||||||||||||||
Other income, net | 1,983 | — | 1,983 | 2,400 | — | 2,400 | |||||||||||||||||
Total Other (Expense) Income | (9,221 | ) | (1,697 | ) | (10,918 | ) | 8,013 | — | 8,013 | ||||||||||||||
Net income before tax | 125,771 | (2,461 | ) | 123,310 | 42,597 | — | 42,597 | ||||||||||||||||
Deferred income tax expense | — | (3,600 | ) | (3,600 | ) | — | — | — | |||||||||||||||
Net income | 125,771 | (6,061 | ) | 119,710 | 42,597 | — | 42,597 | ||||||||||||||||
less: Net income attributable to noncontrolling interests | (5,874 | ) | (99,557 | ) | (105,431 | ) | 1,256 | (37,153 | ) | (35,897 | ) | ||||||||||||
Net income attributable to TEGP | $ | 119,897 | $ | (105,618 | ) | $ | 14,279 | $ | 43,853 | $ | (37,153 | ) | $ | 6,700 | |||||||||
Allocation of income for the six months ended September 30, 2015: | |||||||||||||||||||||||
Net income attributable to TEGP from the beginning of the period to May 11, 2015 | $ | 7,393 | |||||||||||||||||||||
Net income attributable to TEGP from May 12, 2015 to September 30, 2015 | 6,886 | ||||||||||||||||||||||
Basic net income per Class A share | $ | 0.14 | |||||||||||||||||||||
Diluted net income per Class A share | $ | 0.14 | |||||||||||||||||||||
Basic average number of Class A shares outstanding | 47,725 | ||||||||||||||||||||||
Diluted average number of Class A shares outstanding | 47,812 |
(1) | Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for TEGP. |