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 7.01. | Regulation FD Disclosure. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
TALLGRASS ENERGY GP, LP | ||||
By: | TEGP Management, LLC | |||
its general partner | ||||
Date: | February 17, 2016 | By: | /s/ David G. Dehaemers, Jr. | |
David G. Dehaemers, Jr. | ||||
President and Chief Executive Officer |
Exhibit No. | Document Description |
99.1 | Press release dated February 17, 2016 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
(in thousands, except coverage and per unit data) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net income attributable to partners | $ | 40,649 | $ | 26,828 | $ | 160,546 | $ | 70,681 | |||||||
Add: | |||||||||||||||
Interest expense, net of noncontrolling interest | 4,312 | 2,800 | 15,517 | 7,648 | |||||||||||
Depreciation and amortization expense, net of noncontrolling interest | 17,868 | 19,143 | 75,529 | 45,389 | |||||||||||
Loss on extinguishment of debt | 226 | — | 226 | — | |||||||||||
Non-cash loss (gain) related to derivative instruments | 218 | (44 | ) | — | (184 | ) | |||||||||
Non-cash compensation expense | 1,115 | 1,412 | 5,103 | 5,136 | |||||||||||
Non-cash loss from asset sales | 312 | — | 4,795 | — | |||||||||||
Distributions from unconsolidated investment | — | — | — | 1,464 | |||||||||||
Less: | |||||||||||||||
Non-cash loss allocated to noncontrolling interest | — | (10,151 | ) | (9,377 | ) | (10,151 | ) | ||||||||
Gain on remeasurement of unconsolidated investment | — | — | — | (9,388 | ) | ||||||||||
Equity in earnings of unconsolidated investment | — | — | — | (717 | ) | ||||||||||
Adjusted EBITDA | $ | 64,700 | $ | 39,988 | $ | 252,339 | $ | 109,878 | |||||||
Add: | |||||||||||||||
Pony Express preferred distributions in excess of distributable cash flow attributable to Pony Express | — | — | — | 5,429 | |||||||||||
Pony Express deficiency payments received, net | 4,461 | 5,378 | 16,511 | 5,378 | |||||||||||
Less: | |||||||||||||||
Cash interest cost | (3,715 | ) | (2,391 | ) | (13,746 | ) | (6,266 | ) | |||||||
Maintenance capital expenditures | (2,886 | ) | (2,259 | ) | (12,123 | ) | (9,913 | ) | |||||||
Distributions to noncontrolling interest in excess of earnings | 38 | (5,361 | ) | (22,479 | ) | (5,361 | ) | ||||||||
Cash flow attributable to predecessor operations | — | — | — | (3,086 | ) | ||||||||||
Distributable cash flow (DCF) | 62,598 | 35,355 | 220,502 | 96,059 | |||||||||||
Less: | |||||||||||||||
Distributions | (59,040 | ) | (28,294 | ) | (192,580 | ) | (83,329 | ) | |||||||
Amounts in excess of distributions | $ | 3,558 | $ | 7,061 | $ | 27,922 | $ | 12,730 | |||||||
Distribution coverage(2) | 1.06 | x | 1.25 | x | 1.14 | x | 1.15 | x | |||||||
Pro Forma Distribution coverage, excluding $5,625,000 paid in February as a result of units issued in January 2016(3) | 1.17x | 1.18x | |||||||||||||
Common and subordinated units outstanding(4) | 67,162 | 49,034 | 67,162 | 49,034 | |||||||||||
Distribution per common unit | $ | 0.6400 | $ | 0.4850 | $ | 2.3400 | $ | 1.6000 | |||||||
(1) | The financial results for all periods presented in the table include the applicable results of operations of Trailblazer Pipeline Company LLC, which was acquired by TEP effective April 1, 2014, and our 33.3 percent membership interest in Tallgrass Pony Express Pipeline, LLC (“Pony Express”), which was acquired by TEP effective September 1, 2014. The acquisition of an additional 33.3 percent membership interest in Pony Express effective March 1, 2015, is presented prospectively from the date of acquisition, and as a result, financial information for periods prior to March 1, 2015, have not been recast to reflect the additional 33.3 percent membership interest. |
(2) | Distribution coverage for the year ended December 31, 2014, includes the impact of the distributions associated with the 8.05 million units issued on July 25, 2014. Excluding the impact of the distributions paid as a result of the 8.05 million units, coverage would have been 1.20x for the year ended December 31, 2014. |
(3) | The following table contains the calculation of distribution coverage excluding the impact of $5,625,000 in distributions that were paid on February 12, 2016 as a result of the issuance of 6.52 million common units to Tallgrass Development, LP on January 4, 2016. |
(in thousands) | Three Months Ended December 31, 2015 | Year Ended December 31, 2015 | |||||||||
Distributable cash flow (DCF) | $ | 62,598 | $ | 220,502 | |||||||
Less: | |||||||||||
Distributions excluding $5,625,000 paid in February as a result of units issued in January 2016 | (53,415) | (186,955) | |||||||||
Amounts in excess of distributions excluding $5,625,000 paid in February as a result of units issued in January 2016 | 9,183 | 33,547 | |||||||||
Distribution coverage, excluding $5,625,000 paid in February as a result of units issued in January 2016 | 1.17x | 1.18x |
(4) | Common and subordinated units outstanding represent the number of units as of the date of record for the fourth quarter distributions in both 2014 and 2015. All subordinated units converted into common units on February 17, 2015. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Adjusted EBITDA | $ | 64,700 | $ | 39,988 | $ | 252,339 | $ | 109,878 | |||||||
Add: | |||||||||||||||
Pony Express deficiency payments received, net | 4,461 | 5,378 | 16,511 | 5,378 | |||||||||||
Pro Forma Adjusted EBITDA | $ | 69,161 | $ | 45,366 | $ | 268,850 | $ | 115,256 | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Crude Oil Transportation & Logistics | |||||||||||||||
Operating income | $ | 55,610 | $ | 5,937 | $ | 159,467 | $ | 3,601 | |||||||
Add: | |||||||||||||||
Depreciation and amortization expense, net of noncontrolling interest | 8,607 | 9,796 | 39,359 | 10,553 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (18,365 | ) | 10,151 | (24,245 | ) | 11,708 | |||||||||
Less: | |||||||||||||||
Non-cash loss allocated to noncontrolling interest | — | (10,151 | ) | (9,377 | ) | (10,151 | ) | ||||||||
Segment Adjusted EBITDA | $ | 45,852 | $ | 15,733 | $ | 165,204 | $ | 15,711 | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Natural Gas Transportation & Logistics | |||||||||||||||
Operating income | $ | 8,813 | $ | 8,812 | $ | 41,802 | $ | 40,887 | |||||||
Add: | |||||||||||||||
Depreciation and amortization expense | 5,861 | 6,043 | 22,927 | 23,788 | |||||||||||
Non-cash loss (gain) related to derivative instruments | 218 | (44 | ) | — | (184 | ) | |||||||||
Other income | 656 | 702 | 2,639 | 3,102 | |||||||||||
Segment Adjusted EBITDA | $ | 15,548 | $ | 15,513 | $ | 67,368 | $ | 67,593 | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Processing & Logistics | |||||||||||||||
Operating income | $ | 220 | $ | 6,118 | $ | 4,728 | $ | 20,577 | |||||||
Add: | |||||||||||||||
Depreciation and amortization expense, net of noncontrolling interest | 3,400 | 3,304 | 13,243 | 11,048 | |||||||||||
Non-cash loss from asset sales | 312 | — | 4,795 | — | |||||||||||
Distributions from unconsolidated investment | — | — | — | 1,464 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (27 | ) | (55 | ) | (20 | ) | — | ||||||||
Segment Adjusted EBITDA | $ | 3,905 | $ | 9,367 | $ | 22,746 | $ | 33,089 |
Three Months Ended December 31, 2015 | Period from May 12, 2015 (IPO) through December 31, 2015 | ||||||
TEP distributions to Tallgrass Equity: | |||||||
General partner interest | $ | 724 | $ | 2,011 | |||
IDRs | 15,332 | 37,317 | |||||
TEP common units owned by Tallgrass Equity | 12,800 | 36,400 | |||||
Total TEP distributions to Tallgrass Equity | 28,856 | 75,728 | |||||
Less: | |||||||
Cash interest expense attributable to Tallgrass Equity | (1,034 | ) | (2,599 | ) | |||
General and administrative expenses attributable to Tallgrass Equity | (500 | ) | (1,250 | ) | |||
Cash available for distribution by Tallgrass Equity | 27,322 | 71,879 | |||||
Distributions to predecessor owners of pre-IPO available cash(1) | — | 10,202 | |||||
Distributions to Class A (TEGP) | 8,257 | 18,613 | |||||
Distributions to Class B (Exchange Right Holders) | 18,944 | 42,707 | |||||
Total cash distributions by Tallgrass Equity | 27,201 | 71,522 | |||||
TEGP: | |||||||
Distributions received from Tallgrass Equity | 8,257 | 18,613 | |||||
Less: | |||||||
Distributions to Class A shareholders | (8,257 | ) | (18,613 | ) | |||
Amounts in excess of distributions | — | — | |||||
Distribution coverage | 1.00x | 1.00x | |||||
Class A shares outstanding | 47,725 | 47,725 | |||||
Distribution per Class A share | $ | 0.173 | $ | 0.390 |
(1) | Distributions received by Tallgrass Equity from TEP and TEP GP for periods prior to the closing of TEGP’s initial public offering on May 12, 2015. These distributions were paid to Tallgrass Development, LP and the predecessor owners of Tallgrass Equity. |
• | 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. |
December 31, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1,611 | $ | 867 | |||
Accounts receivable, net | 57,742 | 39,768 | |||||
Receivable from related parties | 15 | 73,393 | |||||
Gas imbalances | 1,227 | 2,442 | |||||
Inventories | 13,793 | 13,045 | |||||
Prepayments and other current assets | 2,835 | 2,766 | |||||
Total Current Assets | 77,223 | 132,281 | |||||
Property, plant and equipment, net | 2,025,018 | 1,853,081 | |||||
Goodwill | 343,288 | 343,288 | |||||
Intangible asset, net | 96,546 | 104,538 | |||||
Deferred financing costs, net | 5,105 | 5,528 | |||||
Deferred charges and other assets | 14,894 | 18,481 | |||||
Total Assets | $ | 2,562,074 | $ | 2,457,197 | |||
LIABILITIES AND PARTNERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 22,218 | $ | 62,329 | |||
Accounts payable to related parties | 7,852 | 3,915 | |||||
Gas imbalances | 1,605 | 3,611 | |||||
Accrued taxes | 13,844 | 3,989 | |||||
Accrued liabilities | 10,019 | 9,384 | |||||
Deferred revenue | 26,511 | 5,468 | |||||
Other current liabilities | 6,880 | 7,872 | |||||
Total Current Liabilities | 88,929 | 96,568 | |||||
Long-term debt | 753,000 | 559,000 | |||||
Other long-term liabilities and deferred credits | 5,143 | 6,478 | |||||
Total Long-term Liabilities | 758,143 | 565,478 | |||||
Commitments and Contingencies | |||||||
Equity: | |||||||
Common unitholders (60,644,232 and 32,834,105 units issued and outstanding at December 31, 2015 and 2014, respectively) | 1,618,766 | 800,333 | |||||
Subordinated unitholder (0 and 16,200,000 units issued and outstanding at December 31, 2015 and 2014) | — | 274,133 | |||||
General partner (834,391 units issued and outstanding at December 31, 2015 and 2014, respectively) | (348,841 | ) | (35,743 | ) | |||
Total Partners’ Equity | 1,269,925 | 1,038,723 | |||||
Noncontrolling interests | $ | 445,077 | $ | 756,428 | |||
Total Equity | $ | 1,715,002 | $ | 1,795,151 | |||
Total Liabilities and Equity | $ | 2,562,074 | $ | 2,457,197 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands, except per unit amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Crude oil transportation services | $ | 94,105 | $ | 28,343 | $ | 300,436 | $ | 28,343 | |||||||
Natural gas transportation services | 29,275 | 31,315 | 119,895 | 126,733 | |||||||||||
Sales of natural gas, NGLs, and crude oil | 20,001 | 39,362 | 82,133 | 181,249 | |||||||||||
Processing and other revenues | 7,003 | 10,484 | 33,733 | 35,231 | |||||||||||
Total Revenues | 150,384 | 109,504 | 536,197 | 371,556 | |||||||||||
Operating Costs and Expenses: | |||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 20,326 | 36,358 | 75,285 | 167,545 | |||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 14,528 | 10,375 | 53,597 | 24,109 | |||||||||||
Operations and maintenance | 13,084 | 11,548 | 49,138 | 39,577 | |||||||||||
Depreciation and amortization | 21,714 | 19,143 | 83,476 | 47,048 | |||||||||||
General and administrative | 12,248 | 11,939 | 50,195 | 33,160 | |||||||||||
Taxes, other than income taxes | 5,249 | 1,312 | 21,796 | 6,704 | |||||||||||
Loss on sale of assets | 312 | — | 4,795 | — | |||||||||||
Total Operating Costs and Expenses | 87,461 | 90,675 | 338,282 | 318,143 | |||||||||||
Operating Income | 62,923 | 18,829 | 197,915 | 53,413 | |||||||||||
Other (Expense) Income: | |||||||||||||||
Interest expense, net | (4,310 | ) | (2,801 | ) | (15,514 | ) | (7,292 | ) | |||||||
Gain on remeasurement of unconsolidated investment | — | — | — | 9,388 | |||||||||||
Loss on extinguishment of debt | (226 | ) | — | (226 | ) | — | |||||||||
Equity in earnings of unconsolidated investment | — | — | — | 717 | |||||||||||
Other income, net | 656 | 703 | 2,639 | 3,103 | |||||||||||
Total Other (Expense) Income | (3,880 | ) | (2,098 | ) | (13,101 | ) | 5,916 | ||||||||
Net income | 59,043 | 16,731 | 184,814 | 59,329 | |||||||||||
Net (income) loss attributable to noncontrolling interests | (18,394 | ) | 10,096 | (24,268 | ) | 11,352 | |||||||||
Net income attributable to partners | $ | 40,649 | $ | 26,827 | $ | 160,546 | $ | 70,681 | |||||||
Allocation of income to the limited partners: | |||||||||||||||
Net income attributable to partners | $ | 40,649 | $ | 26,827 | $ | 160,546 | $ | 70,681 | |||||||
Predecessor operations interest in net income | — | — | — | (1,508 | ) | ||||||||||
General partner interest in net income | (15,864 | ) | (4,485 | ) | (46,478 | ) | (7,399 | ) | |||||||
Common and subordinated unitholders' interest in net income | 24,785 | 22,342 | 114,068 | 61,774 | |||||||||||
Basic net income per common and subordinated unit | $ | 0.41 | $ | 0.46 | $ | 1.95 | $ | 1.39 | |||||||
Diluted net income per common and subordinated unit | $ | 0.40 | $ | 0.45 | $ | 1.91 | $ | 1.36 | |||||||
Basic average number of common and subordinated units outstanding | 60,615 | 49,022 | 58,597 | 44,346 | |||||||||||
Diluted average number of common and subordinated units outstanding | 61,502 | 50,174 | 59,575 | 45,394 |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 184,814 | $ | 59,329 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||
Depreciation and amortization | 87,367 | 49,041 | |||||
Gain on remeasurement of unconsolidated investment | — | (9,388 | ) | ||||
Loss on extinguishment of debt | 226 | — | |||||
Noncash compensation expense | 5,103 | 5,136 | |||||
Loss on sale of assets | 4,795 | — | |||||
Changes in components of working capital: | |||||||
Accounts receivable and other | (15,605 | ) | (348 | ) | |||
Gas imbalances | (757 | ) | 1,504 | ||||
Inventories | (5,169 | ) | (8,367 | ) | |||
Accounts payable and accrued liabilities | 9,799 | (21,787 | ) | ||||
Deferred revenue | 20,612 | 6,619 | |||||
Other operating, net | (1,889 | ) | (2,295 | ) | |||
Net Cash Provided by Operating Activities | 289,296 | 79,444 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (65,387 | ) | (665,650 | ) | |||
Issuance of related party loan | — | (270,000 | ) | ||||
Acquisition of Western | (75,000 | ) | — | ||||
Acquisition of Trailblazer | — | (150,000 | ) | ||||
Acquisition of additional equity interests in Water Solutions | — | (7,600 | ) | ||||
Acquisition of Pony Express membership interest | (700,000 | ) | (27,000 | ) | |||
Other investing, net | (4,883 | ) | 17,521 | ||||
Net Cash Used in Investing Activities | (845,270 | ) | (1,102,729 | ) | |||
Cash Flows from Financing Activities: | |||||||
Distributions to unitholders | (161,834 | ) | (68,117 | ) | |||
Distributions to noncontrolling interests | (25,136 | ) | — | ||||
Contribution from TD | — | 27,488 | |||||
Borrowings under revolving credit facility, net | 194,000 | 424,000 | |||||
Proceeds from public offering, net of offering costs | 554,084 | 320,385 | |||||
Contributions from Predecessor Entities, net | — | 312,125 | |||||
Other financing, net | (4,396 | ) | 8,271 | ||||
Net Cash Provided by Financing Activities | 556,718 | 1,024,152 | |||||
Net Change in Cash and Cash Equivalents | 744 | 867 | |||||
Cash and Cash Equivalents, beginning of period | 867 | — | |||||
Cash and Cash Equivalents, end of period | $ | 1,611 | $ | 867 |
December 31, 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 | $ | 1,611 | $ | 623 | $ | 2,234 | $ | 867 | $ | — | $ | 867 | |||||||||||
Accounts receivable, net | 57,742 | — | 57,742 | 39,768 | — | 39,768 | |||||||||||||||||
Receivable from related parties | 15 | — | 15 | 73,393 | — | 73,393 | |||||||||||||||||
Gas imbalances | 1,227 | — | 1,227 | 2,442 | — | 2,442 | |||||||||||||||||
Inventories | 13,793 | — | 13,793 | 13,045 | — | 13,045 | |||||||||||||||||
Prepayments and other current assets | 2,835 | — | 2,835 | 2,766 | — | 2,766 | |||||||||||||||||
Total Current Assets | 77,223 | 623 | 77,846 | 132,281 | — | 132,281 | |||||||||||||||||
Property, plant and equipment, net | 2,025,018 | — | 2,025,018 | 1,853,081 | — | 1,853,081 | |||||||||||||||||
Goodwill | 343,288 | — | 343,288 | 343,288 | — | 343,288 | |||||||||||||||||
Intangible asset, net | 96,546 | — | 96,546 | 104,538 | — | 104,538 | |||||||||||||||||
Deferred financing costs, net | 5,105 | 1,533 | 6,638 | 5,528 | — | 5,528 | |||||||||||||||||
Deferred tax asset | — | 452,430 | 452,430 | — | — | — | |||||||||||||||||
Deferred charges and other assets | 14,894 | — | 14,894 | 18,481 | — | 18,481 | |||||||||||||||||
Total Assets | $ | 2,562,074 | $ | 454,586 | $ | 3,016,660 | $ | 2,457,197 | $ | — | $ | 2,457,197 | |||||||||||
LIABILITIES AND PARTNERS’ EQUITY | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 22,218 | $ | — | $ | 22,218 | $ | 62,329 | $ | — | $ | 62,329 | |||||||||||
Accounts payable to related parties | 7,852 | (97 | ) | 7,755 | 3,915 | — | 3,915 | ||||||||||||||||
Gas imbalances | 1,605 | — | 1,605 | 3,611 | — | 3,611 | |||||||||||||||||
Accrued taxes | 13,844 | — | 13,844 | 3,989 | — | 3,989 | |||||||||||||||||
Accrued liabilities | 10,019 | 187 | 10,206 | 9,384 | — | 9,384 | |||||||||||||||||
Deferred revenue | 26,511 | — | 26,511 | 5,468 | — | 5,468 | |||||||||||||||||
Other current liabilities | 6,880 | — | 6,880 | 7,872 | — | 7,872 | |||||||||||||||||
Total Current Liabilities | 88,929 | 90 | 89,019 | 96,568 | — | 96,568 | |||||||||||||||||
Long-term debt | 753,000 | 148,000 | 901,000 | 559,000 | — | 559,000 | |||||||||||||||||
Other long-term liabilities and deferred credits | 5,143 | — | 5,143 | 6,478 | — | 6,478 | |||||||||||||||||
Total Long-term Liabilities | 758,143 | 148,000 | 906,143 | 565,478 | — | 565,478 | |||||||||||||||||
Equity: | |||||||||||||||||||||||
Total Partners’ Equity | 1,269,925 | (847,615 | ) | 422,310 | 1,038,723 | (891,857 | ) | 146,866 | |||||||||||||||
Noncontrolling interests | 445,077 | 1,154,111 | 1,599,188 | 756,428 | 891,857 | 1,648,285 | |||||||||||||||||
Total Equity | $ | 1,715,002 | $ | 306,496 | $ | 2,021,498 | $ | 1,795,151 | $ | — | $ | 1,795,151 | |||||||||||
Total Liabilities and Equity | $ | 2,562,074 | $ | 454,586 | $ | 3,016,660 | $ | 2,457,197 | $ | — | $ | 2,457,197 |
(1) | Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for TEGP. |
Three Months Ended December 31, 2015 | Three Months Ended December 31, 2014 | ||||||||||||||||||||||
TEP | Consolidating Adjustments (1) | TEGP | TEP | Consolidating Adjustments (1) | TEGP | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Crude oil transportation services | $ | 94,105 | $ | — | $ | 94,105 | $ | 28,343 | $ | — | $ | 28,343 | |||||||||||
Natural gas transportation services | 29,275 | — | 29,275 | 31,315 | — | 31,315 | |||||||||||||||||
Sales of natural gas, NGLs, and crude oil | 20,001 | — | 20,001 | 39,362 | — | 39,362 | |||||||||||||||||
Processing and other revenues | 7,003 | — | 7,003 | 10,484 | — | 10,484 | |||||||||||||||||
Total Revenues | 150,384 | — | 150,384 | 109,504 | — | 109,504 | |||||||||||||||||
Operating Costs and Expenses: | |||||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 20,326 | — | 20,326 | 36,358 | — | 36,358 | |||||||||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 14,528 | — | 14,528 | 10,375 | — | 10,375 | |||||||||||||||||
Operations and maintenance | 13,084 | — | 13,084 | 11,548 | — | 11,548 | |||||||||||||||||
Depreciation and amortization | 21,714 | — | 21,714 | 19,143 | — | 19,143 | |||||||||||||||||
General and administrative | 12,248 | 520 | 12,768 | 11,939 | — | 11,939 | |||||||||||||||||
Taxes, other than income taxes | 5,249 | — | 5,249 | 1,312 | — | 1,312 | |||||||||||||||||
Loss on sale of assets | 312 | — | 312 | — | — | — | |||||||||||||||||
Total Operating Costs and Expenses | 87,461 | 520 | 87,981 | 90,675 | — | 90,675 | |||||||||||||||||
Operating Income | 62,923 | (520 | ) | 62,403 | 18,829 | — | 18,829 | ||||||||||||||||
Other (Expense) Income: | |||||||||||||||||||||||
Interest expense, net | (4,310 | ) | (1,119 | ) | (5,429 | ) | (2,801 | ) | — | (2,801 | ) | ||||||||||||
Loss on extinguishment of debt | (226 | ) | — | (226 | ) | — | — | — | |||||||||||||||
Equity in earnings of unconsolidated investment | — | — | — | — | — | — | |||||||||||||||||
Other income, net | 656 | — | 656 | 703 | — | 703 | |||||||||||||||||
Total Other (Expense) Income | (3,880 | ) | (1,119 | ) | (4,999 | ) | (2,098 | ) | — | (2,098 | ) | ||||||||||||
Net income before tax | 59,043 | (1,639 | ) | 57,404 | 16,731 | — | 16,731 | ||||||||||||||||
Deferred income tax benefit | — | 10,877 | 10,877 | — | — | — | |||||||||||||||||
Net income | 59,043 | 9,238 | 68,281 | 16,731 | — | 16,731 | |||||||||||||||||
less: Net (income) loss attributable to noncontrolling interests | (18,394 | ) | (32,210 | ) | (50,604 | ) | 10,096 | (22,614 | ) | (12,518 | ) | ||||||||||||
Net income attributable to TEGP | $ | 40,649 | $ | (22,972 | ) | $ | 17,677 | $ | 26,827 | $ | (22,614 | ) | $ | 4,213 | |||||||||
Basic net income per Class A share | $ | 0.37 | |||||||||||||||||||||
Diluted net income per Class A share | $ | 0.37 | |||||||||||||||||||||
Basic average number of Class A shares outstanding | 47,725 | ||||||||||||||||||||||
Diluted average number of Class A shares outstanding | 47,725 |
(1) | Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for TEGP. |
Year Ended December 31, 2015 | Year Ended December 31, 2014 | ||||||||||||||||||||||
TEP | Consolidating Adjustments(1) | TEGP | TEP | Consolidating Adjustments (1) | TEGP | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Crude oil transportation services | $ | 300,436 | $ | — | $ | 300,436 | $ | 28,343 | $ | — | $ | 28,343 | |||||||||||
Natural gas transportation services | 119,895 | — | 119,895 | 126,733 | — | 126,733 | |||||||||||||||||
Sales of natural gas, NGLs, and crude oil | 82,133 | — | 82,133 | 181,249 | — | 181,249 | |||||||||||||||||
Processing and other revenues | 33,733 | — | 33,733 | 35,231 | — | 35,231 | |||||||||||||||||
Total Revenues | 536,197 | — | 536,197 | 371,556 | — | 371,556 | |||||||||||||||||
Operating Costs and Expenses: | |||||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 75,285 | — | 75,285 | 167,545 | — | 167,545 | |||||||||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 53,597 | — | 53,597 | 24,109 | — | 24,109 | |||||||||||||||||
Operations and maintenance | 49,138 | — | 49,138 | 39,577 | — | 39,577 | |||||||||||||||||
Depreciation and amortization | 83,476 | — | 83,476 | 47,048 | — | 47,048 | |||||||||||||||||
General and administrative | 50,195 | 1,284 | 51,479 | 33,160 | — | 33,160 | |||||||||||||||||
Taxes, other than income taxes | 21,796 | — | 21,796 | 6,704 | — | 6,704 | |||||||||||||||||
Loss on sale of assets | 4,795 | — | 4,795 | — | — | — | |||||||||||||||||
Total Operating Costs and Expenses | 338,282 | 1,284 | 339,566 | 318,143 | — | 318,143 | |||||||||||||||||
Operating Income | 197,915 | (1,284 | ) | 196,631 | 53,413 | — | 53,413 | ||||||||||||||||
Other (Expense) Income: | |||||||||||||||||||||||
Interest expense, net | (15,514 | ) | (2,816 | ) | (18,330 | ) | (7,292 | ) | — | (7,292 | ) | ||||||||||||
Gain on remeasurement of unconsolidated investment | — | — | — | 9,388 | — | 9,388 | |||||||||||||||||
Loss on extinguishment of debt | (226 | ) | — | (226 | ) | — | — | — | |||||||||||||||
Equity in earnings of unconsolidated investment | — | — | — | 717 | — | 717 | |||||||||||||||||
Other income, net | 2,639 | — | 2,639 | 3,103 | — | 3,103 | |||||||||||||||||
Total Other (Expense) Income | (13,101 | ) | (2,816 | ) | (15,917 | ) | 5,916 | — | 5,916 | ||||||||||||||
Net income before tax | 184,814 | (4,100 | ) | 180,714 | 59,329 | — | 59,329 | ||||||||||||||||
Deferred income tax benefit | — | 7,277 | 7,277 | — | — | — | |||||||||||||||||
Net income | 184,814 | 3,177 | 187,991 | 59,329 | — | 59,329 | |||||||||||||||||
less: Net (income) loss attributable to noncontrolling interests | (24,268 | ) | (131,767 | ) | (156,035 | ) | 11,352 | (59,767 | ) | (48,415 | ) | ||||||||||||
Net income attributable to TEGP | $ | 160,546 | $ | (128,590 | ) | $ | 31,956 | $ | 70,681 | $ | (59,767 | ) | $ | 10,914 |
Allocation of income: | |||||||||||||||||||||||
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 December 31, 2015 | 24,563 | ||||||||||||||||||||||
Basic net income per Class A share | $ | 0.51 | |||||||||||||||||||||
Diluted net income per Class A share | $ | 0.51 | |||||||||||||||||||||
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. |