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: | August 3, 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 August 3, 2016 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands, except coverage and per unit data) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net income attributable to partners | $ | 92,048 | $ | 44,899 | $ | 136,118 | $ | 77,218 | |||||||
Add: | |||||||||||||||
Interest expense(2) | 9,233 | 3,893 | 16,732 | 7,333 | |||||||||||
Depreciation and amortization expense(2) | 21,840 | 18,302 | 43,807 | 38,835 | |||||||||||
Distributions from unconsolidated investment | 29,656 | — | 29,656 | — | |||||||||||
Non-cash (gain) loss related to derivative instruments(2) | (18,791 | ) | 131 | (9,801 | ) | 41 | |||||||||
Non-cash compensation expense | 1,469 | 1,727 | 2,635 | 3,254 | |||||||||||
Non-cash loss from disposal of assets | 1,849 | — | 1,849 | 4,483 | |||||||||||
Less: | |||||||||||||||
Equity in earnings of unconsolidated investment | (23,321 | ) | — | (23,321 | ) | — | |||||||||
Non-cash loss allocated to noncontrolling interest | — | — | — | (9,377 | ) | ||||||||||
Adjusted EBITDA | $ | 113,983 | $ | 68,952 | $ | 197,675 | $ | 121,787 | |||||||
Add: | |||||||||||||||
Pony Express deficiency payments received, net | 8,621 | 3,416 | 15,778 | 3,708 | |||||||||||
Less: | |||||||||||||||
Cash interest cost | (8,412 | ) | (3,482 | ) | (15,233 | ) | (6,513 | ) | |||||||
Maintenance capital expenditures | (2,089 | ) | (3,067 | ) | (4,257 | ) | (4,578 | ) | |||||||
Distributions to noncontrolling interest in excess of earnings | — | (8,894 | ) | — | (10,997 | ) | |||||||||
Distributable Cash Flow | 112,103 | 56,925 | 193,963 | 103,407 | |||||||||||
Less: | |||||||||||||||
Distributions | (79,615 | ) | (46,180 | ) | (148,499 | ) | (84,966 | ) | |||||||
Amounts in excess of distributions(3) | $ | 32,488 | $ | 10,745 | $ | 45,464 | $ | 18,441 | |||||||
Distribution coverage | 1.41 | x | 1.23 | x | 1.31 | x | 1.22 | x | |||||||
Common units outstanding(4) | 72,109 | 60,576 | 72,109 | 60,576 | |||||||||||
Distribution per common unit | $ | 0.7550 | $ | 0.5800 | $ | 1.4600 | $ | 1.1000 |
(1) | The acquisitions of an additional 33.3 percent and 31.3 percent membership interest in Tallgrass Pony Express Pipeline, LLC (“Pony Express”) effective March 1, 2015, and January 1, 2016, respectively, are presented prospectively from the dates of acquisition, and as a result, financial information for periods prior to March 1, 2015, and January 1, 2016, have not been recast to reflect the additional 33.3 percent and 31.3 percent membership interests. |
(2) | Net of noncontrolling interest. |
(4) | Common units represent the number of units as of the date of record for the second quarter distributions in both 2016 and 2015. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(in thousands, except coverage) | 2016 | 2016 | |||||
Adjusted EBITDA | $ | 113,983 | $ | 197,675 | |||
Add: | |||||||
Pony Express deficiency payments received, net(1) | 8,621 | 15,778 | |||||
Alternative Adjusted EBITDA(2) | $ | 122,604 | $ | 213,453 |
(2) | Alternative Adjusted EBITDA shows what TEP's Adjusted EBITDA would have been for the periods presented if TEP included net deficiency payments from shippers' firm, take-or-pay contracts in calculating Adjusted EBITDA. TEP's reported distributable cash flow and distribution coverage would remain unchanged. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2016 | 2016 | ||||||
Distributable Cash Flow | $ | 112,103 | $ | 193,963 | |||
Less: | |||||||
Cash flow from incremental barrels shipped(1) | (6,402 | ) | (15,310 | ) | |||
Alternative Distributable Cash Flow(2) | 105,701 | 178,653 | |||||
Less: | |||||||
Distributions | (79,615 | ) | (148,499 | ) | |||
Amounts in excess of distributions | $ | 26,086 | $ | 30,154 | |||
Alternative distribution coverage(2) | 1.33 | x | 1.20 | x |
(2) | Alternative distributable cash flow and distribution coverage shown excludes the impact of cash flows from incremental barrels shipped on the Pony Express system, as incremental barrels shipped during current periods may reduce the shippers' firm commitment in future periods under their firm, take-or-pay contracts, thereby potentially reducing cash flows in those corresponding future periods. Under this alternative calculation, the cash flows received from incremental barrel shipments would be shown in the future periods in which the incremental barrels are utilized to reduce the shippers' firm commitment. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Crude Oil Transportation & Logistics | |||||||||||||||
Operating income | $ | 53,726 | $ | 45,515 | $ | 106,392 | $ | 59,788 | |||||||
Add: | |||||||||||||||
Depreciation and amortization expense(2) | 13,246 | 9,196 | 26,164 | 20,429 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (1,067 | ) | (8,391 | ) | (2,110 | ) | 986 | ||||||||
Non-cash gain related to derivative instruments(2) | (145 | ) | — | (145 | ) | — | |||||||||
Less: | |||||||||||||||
Non-cash loss allocated to noncontrolling interest | — | — | — | (9,377 | ) | ||||||||||
Segment Adjusted EBITDA | $ | 65,760 | $ | 46,320 | $ | 130,301 | $ | 71,826 | |||||||
Average daily throughput (BBls/d)(3) | 286,217 | 237,184 | 288,746 | 201,495 | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Natural Gas Transportation & Logistics | |||||||||||||||
Operating income | $ | 10,100 | $ | 9,937 | $ | 20,764 | $ | 22,490 | |||||||
Add: | |||||||||||||||
Depreciation and amortization expense | 5,479 | 5,754 | 11,357 | 11,825 | |||||||||||
Distributions from unconsolidated investment(4) | 29,656 | — | 29,656 | — | |||||||||||
Non-cash loss related to derivative instruments | 307 | 131 | 351 | 41 | |||||||||||
Other income, net | 221 | 769 | 787 | 1,481 | |||||||||||
Segment Adjusted EBITDA | $ | 45,763 | $ | 16,591 | $ | 62,915 | $ | 35,837 | |||||||
TIGT and Trailblazer average firm contracted volumes (MMcf/d) | 1,478 | 1,520 | 1,476 | 1,564 | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Processing & Logistics | |||||||||||||||
Operating (loss) income | (1,372 | ) | 3,666 | (1,194 | ) | 4,720 | |||||||||
Add: | |||||||||||||||
Depreciation and amortization expense(2) | 3,115 | 3,352 | 6,286 | 6,581 | |||||||||||
Non-cash loss from disposal of assets | 1,849 | — | 1,849 | 4,483 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (43 | ) | 59 | (41 | ) | 11 | |||||||||
Segment Adjusted EBITDA | $ | 3,549 | $ | 7,077 | $ | 6,900 | $ | 15,795 | |||||||
Natural gas processing inlet volumes (MMcf/d) | 106 | 130 | 102 | 138 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Net income | $ | 112,728 | $ | 48,162 | $ | 192,663 | $ | 92,153 | |||||||
Add: | |||||||||||||||
Interest expense | 39,840 | 41,802 | 80,385 | 87,887 | |||||||||||
Depreciation and amortization expense | 50,163 | 49,547 | 100,499 | 99,085 | |||||||||||
Adjusted EBITDA | 202,731 | 139,511 | 373,547 | 279,125 | |||||||||||
Less: | |||||||||||||||
Cash interest cost | (39,114 | ) | (41,094 | ) | (78,888 | ) | (86,264 | ) | |||||||
Maintenance capital expenditures | (2,280 | ) | (2,802 | ) | (4,277 | ) | (3,817 | ) | |||||||
Distributable Cash Flow | $ | 161,337 | $ | 95,615 | $ | 290,382 | $ | 189,044 | |||||||
Distributions to Members | $ | (161,200 | ) | $ | (95,200 | ) | $ | (286,700 | ) | $ | (194,200 | ) | |||
Contributions from Members | $ | 87,600 | $ | 501,600 | $ | 162,500 | $ | 582,700 | |||||||
Average firm contracted volumes (MMcf/d) | 3,329 | 2,340 | 3,401 | 2,317 |
Period from May 12, 2015 (IPO) through June 30, 2015 | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30, 2016 | June 30, 2016 | ||||||||||
TEP distributions to Tallgrass Equity(1) | |||||||||||
General partner interest | $ | 911 | $ | 1,741 | $ | 627 | |||||
Incentive Distribution Rights | 24,262 | 44,078 | 10,418 | ||||||||
TEP common units owned by Tallgrass Equity | 15,100 | 29,200 | 11,600 | ||||||||
Total TEP distributions to Tallgrass Equity | 40,273 | 75,019 | 22,645 | ||||||||
Less: | |||||||||||
Cash interest expense attributable to Tallgrass Equity | (1,100 | ) | (2,190 | ) | (545 | ) | |||||
Cash general and administrative expenses attributable to Tallgrass Equity | (500 | ) | (1,000 | ) | (250 | ) | |||||
Cash available for distribution by Tallgrass Equity | 38,673 | 71,829 | 21,850 | ||||||||
Distributions to predecessor owners of pre-IPO available cash(2) | — | — | 10,202 | ||||||||
Distributions to Class A (TEGP) | 11,693 | 21,715 | 3,484 | ||||||||
Distributions to Class B (Exchange Right Holders) | 26,829 | 49,825 | 7,994 | ||||||||
Total cash distributions by Tallgrass Equity | $ | 38,522 | $ | 71,540 | $ | 21,680 | |||||
TEGP | |||||||||||
Distributions from Tallgrass Equity | $ | 11,693 | $ | 21,715 | $ | 3,484 | |||||
Less: | |||||||||||
Distributions to Class A shareholders | (11,693 | ) | (21,715 | ) | (3,484 | ) | |||||
Amounts in excess of distributions | — | $ | — | $ | — | ||||||
Distribution coverage | 1.00 | x | 1.00 | x | 1.00 | x | |||||
Class A shares outstanding | 47,725 | 47,725 | 47,725 | ||||||||
Distribution per Class A share | $ | 0.2450 | $ | 0.4550 | $ | 0.0730 |
(1) | Represents distributions expected to be received by Tallgrass Equity from TEP on or about August 12, 2016 in connection with TEP's distribution for the quarter ended June 30, 2016. |
(2) | Represents distributions received by Tallgrass Equity from TEP and Tallgrass MLP GP, LLC related to periods prior to the closing of TEGP’s initial public offering on May 12, 2015 which were paid to Tallgrass Development 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. |
June 30, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1,943 | $ | 1,611 | |||
Accounts receivable, net | 53,033 | 57,757 | |||||
Gas imbalances | 878 | 1,227 | |||||
Inventories | 14,754 | 13,793 | |||||
Derivative asset at fair value | 148 | — | |||||
Prepayments and other current assets | 3,615 | 2,835 | |||||
Total Current Assets | 74,371 | 77,223 | |||||
Property, plant and equipment, net | 2,007,067 | 2,025,018 | |||||
Goodwill | 343,288 | 343,288 | |||||
Intangible asset, net | 95,038 | 96,546 | |||||
Derivative asset at fair value | 55,967 | — | |||||
Unconsolidated investment | 444,074 | — | |||||
Deferred financing costs, net | 6,882 | 5,105 | |||||
Deferred charges and other assets | 13,232 | 14,894 | |||||
Total Assets | $ | 3,039,919 | $ | 2,562,074 | |||
LIABILITIES AND PARTNERS' EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 17,451 | $ | 22,218 | |||
Accounts payable to related parties | 7,191 | 7,852 | |||||
Gas imbalances | 1,199 | 1,605 | |||||
Derivative liabilities at fair value | 351 | — | |||||
Accrued taxes | 15,298 | 13,844 | |||||
Accrued liabilities | 8,136 | 10,019 | |||||
Deferred revenue | 42,901 | 26,511 | |||||
Other current liabilities | 6,687 | 6,880 | |||||
Total Current Liabilities | 99,214 | 88,929 | |||||
Long-term debt | 1,278,000 | 753,000 | |||||
Other long-term liabilities and deferred credits | 6,815 | 5,143 | |||||
Total Long-term Liabilities | 1,284,815 | 758,143 | |||||
Commitments and Contingencies | |||||||
Equity: | |||||||
Common unitholders (75,669,080 and 60,644,232 units issued and outstanding at June 30, 2016 and December 31, 2015, respectively) | 2,242,195 | 1,618,766 | |||||
General partner (834,391 units issued and outstanding at June 30, 2016 and December 31, 2015) | (619,837 | ) | (348,841 | ) | |||
Total Partners' Equity | 1,622,358 | 1,269,925 | |||||
Noncontrolling interests | $ | 33,532 | $ | 445,077 | |||
Total Equity | $ | 1,655,890 | $ | 1,715,002 | |||
Total Liabilities and Equity | $ | 3,039,919 | $ | 2,562,074 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands, except per unit amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Crude oil transportation services | $ | 93,322 | $ | 74,022 | $ | 187,894 | $ | 124,403 | |||||||
Natural gas transportation services | 28,682 | 29,041 | 57,962 | 61,189 | |||||||||||
Sales of natural gas, NGLs, and crude oil | 16,830 | 20,011 | 30,756 | 41,880 | |||||||||||
Processing and other revenues | 8,097 | 9,896 | 15,724 | 20,173 | |||||||||||
Total Revenues | 146,931 | 132,970 | 292,336 | 247,645 | |||||||||||
Operating Costs and Expenses: | |||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 15,958 | 17,180 | 29,526 | 36,773 | |||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 14,240 | 13,492 | 30,396 | 24,207 | |||||||||||
Operations and maintenance | 13,864 | 12,408 | 26,341 | 21,983 | |||||||||||
Depreciation and amortization | 21,576 | 20,355 | 43,268 | 40,960 | |||||||||||
General and administrative | 13,909 | 13,451 | 26,925 | 26,140 | |||||||||||
Taxes, other than income taxes | 5,639 | (271 | ) | 13,145 | 11,026 | ||||||||||
Loss on disposal of assets | 1,849 | — | 1,849 | 4,483 | |||||||||||
Total Operating Costs and Expenses | 87,035 | 76,615 | 171,450 | 165,572 | |||||||||||
Operating Income | 59,896 | 56,355 | 120,886 | 82,073 | |||||||||||
Other Income (Expense): | |||||||||||||||
Interest expense, net | (9,233 | ) | (3,893 | ) | (16,732 | ) | (7,333 | ) | |||||||
Unrealized gain on derivative instrument | 18,953 | — | 10,007 | — | |||||||||||
Equity in earnings of unconsolidated investment | 23,321 | — | 23,321 | — | |||||||||||
Other income, net | 221 | 769 | 787 | 1,481 | |||||||||||
Total Other Income (Expense) | 33,262 | (3,124 | ) | 17,383 | (5,852 | ) | |||||||||
Net income | 93,158 | 53,231 | 138,269 | 76,221 | |||||||||||
Net (income) loss attributable to noncontrolling interests | (1,110 | ) | (8,332 | ) | (2,151 | ) | 997 | ||||||||
Net income attributable to partners | $ | 92,048 | $ | 44,899 | $ | 136,118 | $ | 77,218 | |||||||
Allocation of income to the limited partners: | |||||||||||||||
Net income attributable to partners | $ | 92,048 | $ | 44,899 | $ | 136,118 | $ | 77,218 | |||||||
General partner interest in net income | (25,320 | ) | (11,030 | ) | (45,673 | ) | (18,468 | ) | |||||||
Common and subordinated unitholders' interest in net income | 66,728 | 33,869 | 90,445 | 58,750 | |||||||||||
Basic net income per common and subordinated unit | $ | 0.93 | $ | 0.56 | $ | 1.30 | $ | 1.04 | |||||||
Diluted net income per common and subordinated unit | $ | 0.92 | $ | 0.55 | $ | 1.29 | $ | 1.02 | |||||||
Basic average number of common and subordinated units outstanding | 71,975 | 60,362 | 69,471 | 56,566 | |||||||||||
Diluted average number of common and subordinated units outstanding | 72,925 | 61,225 | 70,360 | 57,404 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 138,269 | $ | 76,221 | |||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||
Depreciation and amortization | 46,077 | 42,867 | |||||
Equity in earnings of unconsolidated investment | (23,321 | ) | — | ||||
Distributions from unconsolidated investment | 23,321 | — | |||||
Noncash compensation expense | 2,635 | 3,254 | |||||
Noncash change in fair value of derivative financial instruments | (9,804 | ) | 41 | ||||
Loss on disposal of assets | 1,849 | 4,483 | |||||
Changes in components of working capital: | |||||||
Accounts receivable and other | 6,578 | (10,215 | ) | ||||
Inventories | (1,683 | ) | (6,068 | ) | |||
Accounts payable and accrued liabilities | (2,303 | ) | 2,183 | ||||
Deferred revenue | 16,174 | 4,198 | |||||
Other operating, net | (1,246 | ) | (4,746 | ) | |||
Net Cash Provided by Operating Activities | 196,546 | 112,218 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (28,491 | ) | (49,544 | ) | |||
Acquisition of unconsolidated affiliate | (436,022 | ) | — | ||||
Acquisition of Pony Express membership interest | (49,118 | ) | (700,000 | ) | |||
Distributions from unconsolidated investment in excess of cumulative earnings | 6,335 | — | |||||
Contributions to unconsolidated investment | (14,387 | ) | — | ||||
Other investing, net | 411 | (4,648 | ) | ||||
Net Cash Used in Investing Activities | (521,272 | ) | (754,192 | ) | |||
Cash Flows from Financing Activities: | |||||||
Distributions to unitholders | (127,924 | ) | (67,080 | ) | |||
Acquisition of Pony Express membership interest | (425,882 | ) | — | ||||
Contributions from noncontrolling interests | 7,273 | 16,294 | |||||
Borrowings under revolving credit facility, net | 525,000 | 147,000 | |||||
Proceeds from public offering, net of offering costs | 261,770 | 551,673 | |||||
Proceeds from private placement, net of offering costs | 90,009 | — | |||||
Other financing, net | (5,188 | ) | (5,002 | ) | |||
Net Cash Provided by Financing Activities | 325,058 | 642,885 | |||||
Net Change in Cash and Cash Equivalents | 332 | 911 | |||||
Cash and Cash Equivalents, beginning of period | 1,611 | 867 | |||||
Cash and Cash Equivalents, end of period | $ | 1,943 | $ | 1,778 |
June 30, 2016 | December 31, 2015 | ||||||||||||||||||||||
TEP | Consolidating Adjustments (1) | TEGP | TEP | Consolidating Adjustments (1) | TEGP | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,943 | $ | 680 | $ | 2,623 | $ | 1,611 | $ | 623 | $ | 2,234 | |||||||||||
Accounts receivable, net | 53,033 | — | 53,033 | 57,757 | — | 57,757 | |||||||||||||||||
Gas imbalances | 878 | — | 878 | 1,227 | — | 1,227 | |||||||||||||||||
Inventories | 14,754 | — | 14,754 | 13,793 | — | 13,793 | |||||||||||||||||
Derivative asset at fair value | 148 | — | 148 | — | — | — | |||||||||||||||||
Prepayments and other current assets | 3,615 | — | 3,615 | 2,835 | — | 2,835 | |||||||||||||||||
Total Current Assets | 74,371 | 680 | 75,051 | 77,223 | 623 | 77,846 | |||||||||||||||||
Property, plant and equipment, net | 2,007,067 | — | 2,007,067 | 2,025,018 | — | 2,025,018 | |||||||||||||||||
Goodwill | 343,288 | — | 343,288 | 343,288 | — | 343,288 | |||||||||||||||||
Intangible asset, net | 95,038 | — | 95,038 | 96,546 | — | 96,546 | |||||||||||||||||
Derivative asset at fair value | 55,967 | — | 55,967 | — | — | — | |||||||||||||||||
Unconsolidated investment | 444,074 | — | 444,074 | ||||||||||||||||||||
Deferred tax asset | — | 442,846 | 442,846 | — | 452,430 | 452,430 | |||||||||||||||||
Deferred financing costs, net | 6,882 | 1,462 | 8,344 | 5,105 | 1,533 | 6,638 | |||||||||||||||||
Deferred charges and other assets | 13,232 | — | 13,232 | 14,894 | — | 14,894 | |||||||||||||||||
Total Assets | $ | 3,039,919 | $ | 444,988 | $ | 3,484,907 | $ | 2,562,074 | $ | 454,586 | $ | 3,016,660 | |||||||||||
LIABILITIES AND PARTNERS' EQUITY | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 17,451 | $ | — | $ | 17,451 | $ | 22,218 | $ | — | $ | 22,218 | |||||||||||
Accounts payable to related parties | 7,191 | (105 | ) | 7,086 | 7,852 | (97 | ) | 7,755 | |||||||||||||||
Gas imbalances | 1,199 | — | 1,199 | 1,605 | — | 1,605 | |||||||||||||||||
Derivative liabilities at fair value | 351 | — | 351 | — | — | — | |||||||||||||||||
Accrued taxes | 15,298 | — | 15,298 | 13,844 | — | 13,844 | |||||||||||||||||
Accrued liabilities | 8,136 | 98 | 8,234 | 10,019 | 187 | 10,206 | |||||||||||||||||
Deferred revenue | 42,901 | — | 42,901 | 26,511 | — | 26,511 | |||||||||||||||||
Other current liabilities | 6,687 | — | 6,687 | 6,880 | — | 6,880 | |||||||||||||||||
Total Current Liabilities | 99,214 | (7 | ) | 99,207 | 88,929 | 90 | 89,019 | ||||||||||||||||
Long-term debt | 1,278,000 | 148,000 | 1,426,000 | 753,000 | 148,000 | 901,000 | |||||||||||||||||
Other long-term liabilities and deferred credits | 6,815 | — | 6,815 | 5,143 | — | 5,143 | |||||||||||||||||
Total Long-term Liabilities | 1,284,815 | 148,000 | 1,432,815 | 758,143 | 148,000 | 906,143 | |||||||||||||||||
Equity: | |||||||||||||||||||||||
Total Partners' Equity | 1,622,358 | (1,433,002 | ) | 189,356 | 1,269,925 | (847,615 | ) | 422,310 | |||||||||||||||
Noncontrolling interests | 33,532 | 1,729,997 | 1,763,529 | 445,077 | 1,154,111 | 1,599,188 | |||||||||||||||||
Total Equity | $ | 1,655,890 | $ | 296,995 | $ | 1,952,885 | $ | 1,715,002 | $ | 306,496 | $ | 2,021,498 | |||||||||||
Total Liabilities and Equity | $ | 3,039,919 | $ | 444,988 | $ | 3,484,907 | $ | 2,562,074 | $ | 454,586 | $ | 3,016,660 |
(1) | Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for TEGP. |
Three Months Ended June 30, 2016 | Three Months Ended June 30, 2015 | ||||||||||||||||||||||
TEP | Consolidating Adjustments (1) | TEGP | TEP | Consolidating Adjustments (1) | TEGP | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Crude oil transportation services | $ | 93,322 | $ | — | $ | 93,322 | $ | 74,022 | $ | — | $ | 74,022 | |||||||||||
Natural gas transportation services | 28,682 | — | 28,682 | 29,041 | — | 29,041 | |||||||||||||||||
Sales of natural gas, NGLs, and crude oil | 16,830 | — | 16,830 | 20,011 | — | 20,011 | |||||||||||||||||
Processing and other revenues | 8,097 | — | 8,097 | 9,896 | — | 9,896 | |||||||||||||||||
Total Revenues | 146,931 | — | 146,931 | 132,970 | — | 132,970 | |||||||||||||||||
Operating Costs and Expenses: | |||||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 15,958 | — | 15,958 | 17,180 | — | 17,180 | |||||||||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 14,240 | — | 14,240 | 13,492 | — | 13,492 | |||||||||||||||||
Operations and maintenance | 13,864 | — | 13,864 | 12,408 | — | 12,408 | |||||||||||||||||
Depreciation and amortization | 21,576 | — | 21,576 | 20,355 | — | 20,355 | |||||||||||||||||
General and administrative | 13,909 | 549 | 14,458 | 13,451 | 250 | 13,701 | |||||||||||||||||
Taxes, other than income taxes | 5,639 | — | 5,639 | (271 | ) | — | (271 | ) | |||||||||||||||
Loss on disposal of assets | 1,849 | — | 1,849 | — | — | — | |||||||||||||||||
Total Operating Costs and Expenses | 87,035 | 549 | 87,584 | 76,615 | 250 | 76,865 | |||||||||||||||||
Operating Income | 59,896 | (549 | ) | 59,347 | 56,355 | (250 | ) | 56,105 | |||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||
Interest expense, net | (9,233 | ) | (1,208 | ) | (10,441 | ) | (3,893 | ) | (586 | ) | (4,479 | ) | |||||||||||
Unrealized gain on derivative instrument | 18,953 | — | 18,953 | — | — | — | |||||||||||||||||
Equity in earnings of unconsolidated investment | 23,321 | — | 23,321 | — | — | — | |||||||||||||||||
Other income, net | 221 | — | 221 | 769 | — | 769 | |||||||||||||||||
Total Other Income (Expense) | 33,262 | (1,208 | ) | 32,054 | (3,124 | ) | (586 | ) | (3,710 | ) | |||||||||||||
Net income before tax | 93,158 | (1,757 | ) | 91,401 | 53,231 | (836 | ) | 52,395 | |||||||||||||||
Deferred income tax expense | — | (6,792 | ) | (6,792 | ) | — | (1,772 | ) | (1,772 | ) | |||||||||||||
Net income | 93,158 | (8,549 | ) | 84,609 | 53,231 | (2,608 | ) | 50,623 | |||||||||||||||
Net income attributable to noncontrolling interests | (1,110 | ) | (80,051 | ) | (81,161 | ) | (8,332 | ) | (37,557 | ) | (45,889 | ) | |||||||||||
Net income attributable to TEGP | $ | 92,048 | $ | (88,600 | ) | $ | 3,448 | $ | 44,899 | $ | (40,165 | ) | $ | 4,734 | |||||||||
Allocation of income for the three months ended June 30, 2015: | |||||||||||||||||||||||
Net income attributable to TEGP from the beginning of the period to May 11, 2015 | $ | 2,271 | |||||||||||||||||||||
Net income attributable to TEGP from May 12, 2015 to June 30, 2015 | 2,463 | ||||||||||||||||||||||
Basic net income per Class A share | $ | 0.07 | $ | 0.05 | |||||||||||||||||||
Diluted net income per Class A share | $ | 0.07 | $ | 0.05 | |||||||||||||||||||
Basic average number of Class A shares outstanding | 47,725 | 47,725 | |||||||||||||||||||||
Diluted average number of Class A shares outstanding | 47,734 | 47,725 |
(1) | Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for TEGP. |
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | ||||||||||||||||||||||
TEP | Consolidating Adjustments (1) | TEGP | TEP | Consolidating Adjustments (1) | TEGP | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Crude oil transportation services | $ | 187,894 | $ | — | $ | 187,894 | $ | 124,403 | $ | — | $ | 124,403 | |||||||||||
Natural gas transportation services | 57,962 | — | 57,962 | 61,189 | — | 61,189 | |||||||||||||||||
Sales of natural gas, NGLs, and crude oil | 30,756 | — | 30,756 | 41,880 | — | 41,880 | |||||||||||||||||
Processing and other revenues | 15,724 | — | 15,724 | 20,173 | — | 20,173 | |||||||||||||||||
Total Revenues | 292,336 | — | 292,336 | 247,645 | — | 247,645 | |||||||||||||||||
Operating Costs and Expenses: | |||||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 29,526 | — | 29,526 | 36,773 | — | 36,773 | |||||||||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 30,396 | — | 30,396 | 24,207 | — | 24,207 | |||||||||||||||||
Operations and maintenance | 26,341 | — | 26,341 | 21,983 | — | 21,983 | |||||||||||||||||
Depreciation and amortization | 43,268 | — | 43,268 | 40,960 | — | 40,960 | |||||||||||||||||
General and administrative | 26,925 | 1,070 | 27,995 | 26,140 | 250 | 26,390 | |||||||||||||||||
Taxes, other than income taxes | 13,145 | — | 13,145 | 11,026 | — | 11,026 | |||||||||||||||||
Loss on disposal of assets | 1,849 | — | 1,849 | 4,483 | — | 4,483 | |||||||||||||||||
Total Operating Costs and Expenses | 171,450 | 1,070 | 172,520 | 165,572 | 250 | 165,822 | |||||||||||||||||
Operating Income | 120,886 | (1,070 | ) | 119,816 | 82,073 | (250 | ) | 81,823 | |||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||
Interest expense, net | (16,732 | ) | (2,386 | ) | (19,118 | ) | (7,333 | ) | (586 | ) | (7,919 | ) | |||||||||||
Unrealized gain on derivative instrument | 10,007 | — | 10,007 | — | — | — | |||||||||||||||||
Equity in earnings of unconsolidated investment | 23,321 | — | 23,321 | — | — | — | |||||||||||||||||
Other income, net | 787 | — | 787 | 1,481 | — | 1,481 | |||||||||||||||||
Total Other Income (Expense) | 17,383 | (2,386 | ) | 14,997 | (5,852 | ) | (586 | ) | (6,438 | ) | |||||||||||||
Net income before tax | 138,269 | (3,456 | ) | 134,813 | 76,221 | (836 | ) | 75,385 | |||||||||||||||
Deferred income tax expense | — | (9,583 | ) | (9,583 | ) | — | (1,772 | ) | (1,772 | ) | |||||||||||||
Net income | 138,269 | (13,039 | ) | 125,230 | 76,221 | (2,608 | ) | 73,613 | |||||||||||||||
Net income attributable to noncontrolling interests | (2,151 | ) | (112,042 | ) | (114,193 | ) | 997 | (64,754 | ) | (63,757 | ) | ||||||||||||
Net income attributable to TEGP | $ | 136,118 | $ | (125,081 | ) | $ | 11,037 | $ | 77,218 | $ | (67,362 | ) | $ | 9,856 | |||||||||
Allocation of income for the six months ended June 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 June 30, 2015 | 2,463 | ||||||||||||||||||||||
Basic net income per Class A share | $ | 0.23 | $ | 0.05 | |||||||||||||||||||
Diluted net income per Class A share | $ | 0.23 | $ | 0.05 | |||||||||||||||||||
Basic average number of Class A shares outstanding | 47,725 | 47,725 | |||||||||||||||||||||
Diluted average number of Class A shares outstanding | 47,725 | 47,725 |
(1) | Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for TEGP. |