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: | February 15, 2017 | 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 15, 2017 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
(in thousands, except coverage and per unit data) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net income attributable to partners | $ | 66,677 | $ | 40,649 | $ | 263,529 | $ | 160,546 | |||||||
Add: | |||||||||||||||
Interest expense(2) | 13,049 | 4,312 | 40,688 | 15,517 | |||||||||||
Depreciation and amortization expense(2) | 21,062 | 17,868 | 85,971 | 75,529 | |||||||||||
Distributions from unconsolidated investment | 24,440 | — | 75,900 | — | |||||||||||
Non-cash loss related to derivative instruments(2) | 6,938 | 218 | 1,547 | — | |||||||||||
Non-cash compensation expense (3) | 1,510 | 1,115 | 5,780 | 5,103 | |||||||||||
Non-cash loss from disposal of assets | — | 312 | 1,849 | 4,795 | |||||||||||
Loss on extinguishment of debt | — | 226 | — | 226 | |||||||||||
Less: | |||||||||||||||
Equity in earnings of unconsolidated investment | (16,393 | ) | — | (51,780 | ) | — | |||||||||
Non-cash loss allocated to noncontrolling interest | — | — | — | (9,377 | ) | ||||||||||
Adjusted EBITDA | $ | 117,283 | $ | 64,700 | $ | 423,484 | $ | 252,339 | |||||||
Add: | |||||||||||||||
Deficiency payments received, net | 8,604 | 4,461 | 33,496 | 16,511 | |||||||||||
Less: | |||||||||||||||
Cash interest cost | (11,927 | ) | (3,715 | ) | (37,110 | ) | (13,746 | ) | |||||||
Maintenance capital expenditures, net | (4,238 | ) | (2,886 | ) | (11,323 | ) | (12,123 | ) | |||||||
Distributions to noncontrolling interest in excess of earnings | — | 38 | — | (22,479 | ) | ||||||||||
Distributable Cash Flow | 109,722 | 62,598 | 408,547 | 220,502 | |||||||||||
Less: | |||||||||||||||
Distributions | (88,159 | ) | (59,040 | ) | (321,953 | ) | (192,580 | ) | |||||||
Amounts in excess of distributions(4) | $ | 21,563 | $ | 3,558 | $ | 86,594 | $ | 27,922 | |||||||
Distribution coverage(4) | 1.24 | x | 1.06 | x | 1.27 | x | 1.14 | x | |||||||
Pro Forma Distribution coverage, excluding $5,625,000 paid in February 2016 as a result of units issued in January 2016 | 1.17x | 1.18x | |||||||||||||
Common units outstanding(5) | 72,139 | 67,162 | 72,139 | 67,162 | |||||||||||
Distribution per common unit | $ | 0.8150 | $ | 0.6400 | $ | 3.0700 | $ | 2.3400 |
(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. |
(3) | Represents TEP's portion of non-cash compensation expense related to Equity Participation Units, excluding amounts allocated to TD. |
(5) | Common units represent the number of units as of the date of record for the fourth quarter distributions in both 2016 and 2015. |
Three Months Ended December 31, | Year Ended December 31, | ||||||
(in thousands) | 2016 | 2016 | |||||
Adjusted EBITDA | $ | 117,283 | $ | 423,484 | |||
Add: | |||||||
Deficiency payments received, net(1) | 8,604 | 33,496 | |||||
Alternative Adjusted EBITDA(2) | $ | 125,887 | $ | 456,980 |
(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 December 31, | Year Ended December 31, | ||||||
(in thousands, except coverage) | 2016 | 2016 | |||||
Distributable Cash Flow | $ | 109,722 | $ | 408,547 | |||
Less: | |||||||
Cash flow from incremental barrels shipped(1) | (6,254 | ) | (24,287 | ) | |||
Alternative Distributable Cash Flow(2) | 103,468 | 384,260 | |||||
Less: | |||||||
Distributions | (88,159 | ) | (321,953 | ) | |||
Amounts in excess of distributions | $ | 15,309 | $ | 62,307 | |||
Alternative distribution coverage(2) | 1.17 | x | 1.19 | x |
(2) | Alternative distributable cash flow and alternative 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 December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Crude Oil Transportation & Logistics | |||||||||||||||
Operating income | $ | 56,165 | $ | 55,610 | $ | 215,784 | $ | 159,467 | |||||||
Add: | |||||||||||||||
Depreciation and amortization expense(2) | 13,188 | 8,607 | 52,464 | 39,359 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (1,118 | ) | (18,365 | ) | (4,288 | ) | (24,245 | ) | |||||||
Non-cash loss related to derivative instruments(2) | 424 | — | 431 | — | |||||||||||
Less: | |||||||||||||||
Non-cash loss allocated to noncontrolling interest | — | — | — | (9,377 | ) | ||||||||||
Segment Adjusted EBITDA | $ | 68,659 | $ | 45,852 | $ | 264,391 | $ | 165,204 | |||||||
Average daily throughput (bbls/d)(3) | 288,468 | 288,359 | 285,507 | 236,256 | |||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Natural Gas Transportation & Logistics | |||||||||||||||
Operating income | $ | 14,889 | $ | 8,813 | $ | 49,907 | $ | 41,802 | |||||||
Add: | |||||||||||||||
Depreciation and amortization expense | 4,743 | 5,861 | 20,976 | 22,927 | |||||||||||
Distributions from unconsolidated investment(4) | 24,440 | — | 75,900 | — | |||||||||||
Non-cash (gain) loss related to derivative instruments | (74 | ) | 218 | 116 | — | ||||||||||
Other income, net | 456 | 656 | 1,723 | 2,639 | |||||||||||
Segment Adjusted EBITDA | $ | 44,454 | $ | 15,548 | $ | 148,622 | $ | 67,368 | |||||||
TIGT and Trailblazer average firm contracted volumes (MMcf/d) | 1,583 | 1,627 | 1,627 | 1,679 | |||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Processing & Logistics | |||||||||||||||
Operating income | $ | 2,155 | $ | 220 | $ | 1,081 | $ | 4,728 | |||||||
Add: | |||||||||||||||
Depreciation and amortization expense(2) | 3,131 | 3,400 | 12,531 | 13,243 | |||||||||||
Non-cash gain related to derivative instruments | (291 | ) | — | (291 | ) | — | |||||||||
Non-cash loss from disposal of assets | — | 312 | 1,849 | 4,795 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (12 | ) | (27 | ) | (77 | ) | (20 | ) | |||||||
Segment Adjusted EBITDA | $ | 4,983 | $ | 3,905 | $ | 15,093 | $ | 22,746 | |||||||
Natural gas processing inlet volumes (MMcf/d) | 107 | 104 | 103 | 122 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Net income | $ | 51,636 | $ | 93,143 | $ | 278,483 | $ | 263,922 | |||||||
Add: | |||||||||||||||
Interest expense | 38,866 | 41,110 | 158,560 | 170,140 | |||||||||||
Depreciation and amortization expense | 53,460 | 50,320 | 204,291 | 199,377 | |||||||||||
Adjusted EBITDA | 143,962 | 184,573 | 641,334 | 633,439 | |||||||||||
Less: | |||||||||||||||
Cash interest cost | (38,032 | ) | (40,245 | ) | (155,224 | ) | (166,721 | ) | |||||||
Maintenance capital expenditures | (7,993 | ) | (2,954 | ) | (13,871 | ) | (10,017 | ) | |||||||
Distributable Cash Flow | $ | 97,937 | $ | 141,374 | $ | 472,239 | $ | 456,701 | |||||||
Distributions to Members | $ | (97,760 | ) | $ | (178,828 | ) | $ | (471,648 | ) | $ | (499,014 | ) | |||
Contributions from Members | $ | 58,244 | $ | 64,710 | $ | 304,999 | $ | 733,067 | |||||||
Average firm contracted volumes (MMcf/d) | 3,408 | 3,540 | 3,384 | 2,829 |
Period from May 12, 2015 (IPO) through December 31, | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
TEP distributions to Tallgrass Equity | |||||||||||||||
General partner interest | $ | 1,008 | $ | 724 | $ | 3,725 | $ | 2,011 | |||||||
Incentive Distribution Rights | 28,358 | 15,332 | 99,423 | 37,317 | |||||||||||
TEP common units owned by Tallgrass Equity | 16,300 | 12,800 | 61,400 | 36,400 | |||||||||||
Total TEP distributions to Tallgrass Equity(1) | 45,666 | 28,856 | 164,548 | 75,728 | |||||||||||
Less: | |||||||||||||||
Cash interest expense attributable to Tallgrass Equity | (1,158 | ) | (1,034 | ) | (4,480 | ) | (2,599 | ) | |||||||
Cash general and administrative expenses attributable to Tallgrass Equity | (500 | ) | (500 | ) | (2,000 | ) | (1,250 | ) | |||||||
Cash available for distribution by Tallgrass Equity | 44,008 | 27,322 | 158,068 | 71,879 | |||||||||||
Distributions to predecessor owners of pre-IPO available cash(2) | — | — | — | 10,202 | |||||||||||
Distributions to Class A (TEGP) | 16,116 | 8,257 | 50,359 | 18,613 | |||||||||||
Distributions to Class B (Exchange Right Holders) | 27,515 | 18,944 | 106,085 | 42,707 | |||||||||||
Total cash distributions by Tallgrass Equity | $ | 43,631 | $ | 27,201 | $ | 156,444 | $ | 71,522 | |||||||
TEGP | |||||||||||||||
Distributions from Tallgrass Equity | $ | 16,116 | $ | 8,257 | $ | 50,359 | $ | 18,613 | |||||||
Less: | |||||||||||||||
Distributions to Class A shareholders | (16,116 | ) | (8,257 | ) | (50,359 | ) | (18,613 | ) | |||||||
Amounts in excess of distributions | — | — | — | — | |||||||||||
Distribution coverage | 1.00 | x | 1.00 | x | 1.00 | x | 1.00 | x | |||||||
Class A shares outstanding | 58,075 | 47,725 | 58,075 | 47,725 | |||||||||||
Distribution per Class A share | $ | 0.2775 | $ | 0.1730 | $ | 0.9950 | $ | 0.3900 |
(1) | The three and twelve month periods ended December 31, 2016, and December 31, 2015, include distributions received by Tallgrass Equity from TEP's distribution for the quarters ended December 31, 2016, and December 31, 2015, respectively. |
(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. |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1,873 | $ | 1,611 | |||
Accounts receivable, net | 59,469 | 57,757 | |||||
Gas imbalances | 1,597 | 1,227 | |||||
Inventories | 12,805 | 13,793 | |||||
Derivative assets at fair value | 10,967 | — | |||||
Prepayments and other current assets | 6,820 | 2,835 | |||||
Total Current Assets | 93,531 | 77,223 | |||||
Property, plant and equipment, net | 2,012,263 | 2,025,018 | |||||
Goodwill | 343,288 | 343,288 | |||||
Intangible asset, net | 93,522 | 96,546 | |||||
Unconsolidated investment | 461,915 | — | |||||
Deferred financing costs, net | 4,815 | 5,105 | |||||
Deferred charges and other assets | 9,637 | 14,894 | |||||
Total Assets | $ | 3,018,971 | $ | 2,562,074 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 24,076 | $ | 22,218 | |||
Accounts payable to related parties | 5,879 | 7,852 | |||||
Gas imbalances | 1,239 | 1,605 | |||||
Derivative liabilities at fair value | 556 | — | |||||
Accrued taxes | 16,328 | 13,844 | |||||
Accrued liabilities | 16,525 | 10,019 | |||||
Deferred revenue | 60,757 | 26,511 | |||||
Other current liabilities | 6,446 | 6,880 | |||||
Total Current Liabilities | 131,806 | 88,929 | |||||
Long-term debt, net | 1,407,981 | 753,000 | |||||
Other long-term liabilities and deferred credits | 7,063 | 5,143 | |||||
Total Long-term Liabilities | 1,415,044 | 758,143 | |||||
Commitments and Contingencies | |||||||
Equity: | |||||||
Common unitholders (72,485,954 and 60,644,232 units issued and outstanding at December 31, 2016 and 2015, respectively) | 2,070,495 | 1,618,766 | |||||
General partner (834,391 units issued and outstanding at December 31, 2016 and 2015, respectively) | (632,339 | ) | (348,841 | ) | |||
Total Partners' Equity | 1,438,156 | 1,269,925 | |||||
Noncontrolling interests | 33,965 | 445,077 | |||||
Total Equity | 1,472,121 | 1,715,002 | |||||
Total Liabilities and Equity | $ | 3,018,971 | $ | 2,562,074 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands, except per unit amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Crude oil transportation services | $ | 95,668 | $ | 94,105 | $ | 374,949 | $ | 300,436 | |||||||
Natural gas transportation services | 30,556 | 29,275 | 119,962 | 119,895 | |||||||||||
Sales of natural gas, NGLs, and crude oil | 25,880 | 20,001 | 77,394 | 82,133 | |||||||||||
Processing and other revenues | 8,557 | 7,003 | 32,817 | 33,733 | |||||||||||
Total Revenues | 160,661 | 150,384 | 605,122 | 536,197 | |||||||||||
Operating Costs and Expenses: | |||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 23,804 | 20,326 | 71,920 | 75,285 | |||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 14,417 | 14,528 | 58,341 | 53,597 | |||||||||||
Operations and maintenance | 12,331 | 13,084 | 53,386 | 49,138 | |||||||||||
Depreciation and amortization | 20,797 | 21,714 | 84,896 | 83,476 | |||||||||||
General and administrative | 13,561 | 12,248 | 53,633 | 50,195 | |||||||||||
Taxes, other than income taxes | 4,865 | 5,249 | 24,727 | 21,796 | |||||||||||
Loss on disposal of assets | — | 312 | 1,849 | 4,795 | |||||||||||
Total Operating Costs and Expenses | 89,775 | 87,461 | 348,752 | 338,282 | |||||||||||
Operating Income | 70,886 | 62,923 | 256,370 | 197,915 | |||||||||||
Other Income (Expense): | |||||||||||||||
Interest expense, net | (13,049 | ) | (4,310 | ) | (40,688 | ) | (15,514 | ) | |||||||
Unrealized loss on derivative instrument | (6,879 | ) | — | (1,291 | ) | — | |||||||||
Equity in earnings of unconsolidated investment | 16,393 | — | 51,780 | — | |||||||||||
Other income, net | 456 | 430 | 1,723 | 2,413 | |||||||||||
Total Other (Expense) Income | (3,079 | ) | (3,880 | ) | 11,524 | (13,101 | ) | ||||||||
Net income | 67,807 | 59,043 | 267,894 | 184,814 | |||||||||||
Net income attributable to noncontrolling interests | (1,130 | ) | (18,394 | ) | (4,365 | ) | (24,268 | ) | |||||||
Net income attributable to partners | $ | 66,677 | $ | 40,649 | $ | 263,529 | $ | 160,546 | |||||||
Allocation of income to the limited partners: | |||||||||||||||
Net income attributable to partners | $ | 66,677 | $ | 40,649 | $ | 263,529 | $ | 160,546 | |||||||
General partner interest in net income | (29,118 | ) | (15,864 | ) | (102,465 | ) | (46,478 | ) | |||||||
Common and subordinated unitholders' interest in net income | 37,559 | 24,785 | 161,064 | 114,068 | |||||||||||
Basic net income per common and subordinated unit | $ | 0.52 | $ | 0.41 | $ | 2.26 | $ | 1.95 | |||||||
Diluted net income per common and subordinated unit | $ | 0.51 | $ | 0.40 | $ | 2.23 | $ | 1.91 | |||||||
Basic average number of common and subordinated units outstanding | 72,530 | 60,615 | 71,150 | 58,597 | |||||||||||
Diluted average number of common and subordinated units outstanding | 73,548 | 61,502 | 72,107 | 59,575 |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 267,894 | $ | 184,814 | |||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||
Depreciation and amortization | 91,453 | 87,367 | |||||
Equity in earnings of unconsolidated investments | (51,780 | ) | — | ||||
Distributions from unconsolidated investments | 51,780 | — | |||||
Noncash compensation expense | 5,780 | 5,103 | |||||
Noncash change in the fair value of derivative financial instruments | 1,556 | — | |||||
Loss on disposal of assets | 1,849 | 4,795 | |||||
Changes in components of working capital: | |||||||
Accounts receivable and other | 2,024 | (15,605 | ) | ||||
Gas imbalances | 1,157 | (757 | ) | ||||
Inventories | (938 | ) | (5,169 | ) | |||
Accounts payable and accrued liabilities | 9,966 | 9,799 | |||||
Deferred revenue | 33,815 | 20,612 | |||||
Other operating, net | (5,072 | ) | (1,663 | ) | |||
Net Cash Provided by Operating Activities | 409,484 | 289,296 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (70,719 | ) | (65,387 | ) | |||
Acquisition of unconsolidated affiliate | (436,022 | ) | — | ||||
Acquisition of Pony Express membership interest | (49,118 | ) | (700,000 | ) | |||
Contributions to unconsolidated affiliate | (50,013 | ) | — | ||||
Distributions from unconsolidated investment in excess of cumulative earnings | 24,120 | — | |||||
Acquisition of Western | — | (75,000 | ) | ||||
Other investing, net | 48 | (4,883 | ) | ||||
Net Cash Used in Investing Activities | (581,704 | ) | (845,270 | ) | |||
Cash Flows from Financing Activities: | |||||||
Acquisition of Pony Express membership interest | (425,882 | ) | — | ||||
Proceeds from issuance of long-term debt | 400,000 | — | |||||
Proceeds from public offering, net of offering costs | 337,671 | 554,084 | |||||
Distributions to unitholders | (292,834 | ) | (161,834 | ) | |||
Borrowings under revolving credit facility, net | 262,000 | 194,000 | |||||
Partial exercise of call option | (204,634 | ) | — | ||||
Proceeds from private placement, net of offering costs | 90,009 | — | |||||
Contribution from TD | 17,894 | — | |||||
Other financing, net | (11,742 | ) | (29,532 | ) | |||
Net Cash Provided by Financing Activities | 172,482 | 556,718 | |||||
Net Change in Cash and Cash Equivalents | 262 | 744 | |||||
Cash and Cash Equivalents, beginning of period | 1,611 | 867 | |||||
Cash and Cash Equivalents, end of period | $ | 1,873 | $ | 1,611 |
December 31, 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 | $ | 1,873 | $ | 586 | $ | 2,459 | $ | 1,611 | $ | 623 | $ | 2,234 | |||||||||||
Accounts receivable, net | 59,469 | — | 59,469 | 57,757 | — | 57,757 | |||||||||||||||||
Gas imbalances | 1,597 | — | 1,597 | 1,227 | — | 1,227 | |||||||||||||||||
Inventories | 12,805 | — | 12,805 | 13,793 | — | 13,793 | |||||||||||||||||
Derivative assets at fair value | 10,967 | — | 10,967 | — | — | — | |||||||||||||||||
Prepayments and other current assets | 6,820 | — | 6,820 | 2,835 | — | 2,835 | |||||||||||||||||
Total Current Assets | 93,531 | 586 | 94,117 | 77,223 | 623 | 77,846 | |||||||||||||||||
Property, plant and equipment, net | 2,012,263 | — | 2,012,263 | 2,025,018 | — | 2,025,018 | |||||||||||||||||
Goodwill | 343,288 | — | 343,288 | 343,288 | — | 343,288 | |||||||||||||||||
Intangible asset, net | 93,522 | — | 93,522 | 96,546 | — | 96,546 | |||||||||||||||||
Unconsolidated investment | 461,915 | — | 461,915 | — | — | — | |||||||||||||||||
Deferred tax asset | — | 521,454 | 521,454 | — | 452,430 | 452,430 | |||||||||||||||||
Deferred financing costs, net | 4,815 | 1,227 | 6,042 | 5,105 | 1,533 | 6,638 | |||||||||||||||||
Deferred charges and other assets | 9,637 | — | 9,637 | 14,894 | — | 14,894 | |||||||||||||||||
Total Assets | $ | 3,018,971 | $ | 523,267 | $ | 3,542,238 | $ | 2,562,074 | $ | 454,586 | $ | 3,016,660 | |||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 24,076 | $ | 327 | $ | 24,403 | $ | 22,218 | $ | — | $ | 22,218 | |||||||||||
Accounts payable to related parties | 5,879 | (111 | ) | 5,768 | 7,852 | (97 | ) | 7,755 | |||||||||||||||
Gas imbalances | 1,239 | — | 1,239 | 1,605 | — | 1,605 | |||||||||||||||||
Derivative liabilities at fair value | 556 | — | 556 | — | — | — | |||||||||||||||||
Accrued taxes | 16,328 | — | 16,328 | 13,844 | — | 13,844 | |||||||||||||||||
Accrued liabilities | 16,525 | 53 | 16,578 | 10,019 | 187 | 10,206 | |||||||||||||||||
Deferred revenue | 60,757 | — | 60,757 | 26,511 | — | 26,511 | |||||||||||||||||
Other current liabilities | 6,446 | — | 6,446 | 6,880 | — | 6,880 | |||||||||||||||||
Total Current Liabilities | 131,806 | 269 | 132,075 | 88,929 | 90 | 89,019 | |||||||||||||||||
Long-term debt, net | 1,407,981 | 148,000 | 1,555,981 | 753,000 | 148,000 | 901,000 | |||||||||||||||||
Other long-term liabilities and deferred credits | 7,063 | — | 7,063 | 5,143 | — | 5,143 | |||||||||||||||||
Total Long-term Liabilities | 1,415,044 | 148,000 | 1,563,044 | 758,143 | 148,000 | 906,143 | |||||||||||||||||
Equity: | |||||||||||||||||||||||
Total Partners' Equity | 1,438,156 | (1,187,189 | ) | 250,967 | 1,269,925 | (847,615 | ) | 422,310 | |||||||||||||||
Noncontrolling interests | 33,965 | 1,562,187 | 1,596,152 | 445,077 | 1,154,111 | 1,599,188 | |||||||||||||||||
Total Equity | 1,472,121 | 374,998 | 1,847,119 | 1,715,002 | 306,496 | 2,021,498 | |||||||||||||||||
Total Liabilities and Equity | $ | 3,018,971 | $ | 523,267 | $ | 3,542,238 | $ | 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 December 31, 2016 | Three Months Ended December 31, 2015 | ||||||||||||||||||||||
TEP | Consolidating Adjustments (1) | TEGP | TEP | Consolidating Adjustments (1) | TEGP | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Crude oil transportation services | $ | 95,668 | $ | — | $ | 95,668 | $ | 94,105 | $ | — | $ | 94,105 | |||||||||||
Natural gas transportation services | 30,556 | $ | — | 30,556 | 29,275 | — | 29,275 | ||||||||||||||||
Sales of natural gas, NGLs, and crude oil | 25,880 | $ | — | 25,880 | 20,001 | — | 20,001 | ||||||||||||||||
Processing and other revenues | 8,557 | — | 8,557 | 7,003 | — | 7,003 | |||||||||||||||||
Total Revenues | 160,661 | — | 160,661 | 150,384 | — | 150,384 | |||||||||||||||||
Operating Costs and Expenses: | |||||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 23,804 | — | 23,804 | 20,326 | — | 20,326 | |||||||||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 14,417 | — | 14,417 | 14,528 | — | 14,528 | |||||||||||||||||
Operations and maintenance | 12,331 | — | 12,331 | 13,084 | — | 13,084 | |||||||||||||||||
Depreciation and amortization | 20,797 | — | 20,797 | 21,714 | — | 21,714 | |||||||||||||||||
General and administrative | 13,561 | 558 | 14,119 | 12,248 | 520 | 12,768 | |||||||||||||||||
Taxes, other than income taxes | 4,865 | — | 4,865 | 5,249 | — | 5,249 | |||||||||||||||||
Loss on disposal of assets | — | — | — | 312 | — | 312 | |||||||||||||||||
Total Operating Costs and Expenses | 89,775 | 558 | 90,333 | 87,461 | 520 | 87,981 | |||||||||||||||||
Operating Income | 70,886 | (558 | ) | 70,328 | 62,923 | (520 | ) | 62,403 | |||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||
Interest expense, net | (13,049 | ) | (1,277 | ) | (14,326 | ) | (4,310 | ) | (1,119 | ) | (5,429 | ) | |||||||||||
Unrealized loss on derivative instrument | (6,879 | ) | — | (6,879 | ) | — | — | ||||||||||||||||
Equity in earnings of unconsolidated investment | 16,393 | — | 16,393 | — | — | — | |||||||||||||||||
Other income, net | 456 | — | 456 | 430 | — | 430 | |||||||||||||||||
Total Other Expense | (3,079 | ) | (1,277 | ) | (4,356 | ) | (3,880 | ) | (1,119 | ) | (4,999 | ) | |||||||||||
Net income before tax | 67,807 | (1,835 | ) | 65,972 | 59,043 | (1,639 | ) | 57,404 | |||||||||||||||
Deferred income tax (expense) benefit | — | (4,949 | ) | (4,949 | ) | — | 10,877 | 10,877 | |||||||||||||||
Net income | 67,807 | (6,784 | ) | 61,023 | 59,043 | 9,238 | 68,281 | ||||||||||||||||
Net income attributable to noncontrolling interests | (1,130 | ) | (51,177 | ) | (52,307 | ) | (18,394 | ) | (32,210 | ) | (50,604 | ) | |||||||||||
Net income attributable to TEGP | $ | 66,677 | $ | (57,961 | ) | $ | 8,716 | $ | 40,649 | $ | (22,972 | ) | $ | 17,677 | |||||||||
Basic net income per Class A share | $ | 0.17 | $ | 0.37 | |||||||||||||||||||
Diluted net income per Class A share | $ | 0.17 | $ | 0.37 | |||||||||||||||||||
Basic average number of Class A shares outstanding | 52,225 | 47,725 | |||||||||||||||||||||
Diluted average number of Class A shares outstanding | 52,286 | 47,725 |
(1) | Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for TEGP. |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | ||||||||||||||||||||||
TEP | Consolidating Adjustments(1) | TEGP | TEP | Consolidating Adjustments (1) | TEGP | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Crude oil transportation services | $ | 374,949 | $ | — | $ | 374,949 | $ | 300,436 | $ | — | $ | 300,436 | |||||||||||
Natural gas transportation services | 119,962 | — | 119,962 | 119,895 | — | 119,895 | |||||||||||||||||
Sales of natural gas, NGLs, and crude oil | 77,394 | — | 77,394 | 82,133 | — | 82,133 | |||||||||||||||||
Processing and other revenues | 32,817 | — | 32,817 | 33,733 | — | 33,733 | |||||||||||||||||
Total Revenues | 605,122 | — | 605,122 | 536,197 | — | 536,197 | |||||||||||||||||
Operating Costs and Expenses: | |||||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 71,920 | — | 71,920 | 75,285 | — | 75,285 | |||||||||||||||||
Cost of transportation services (exclusive of depreciation and amortization shown below) | 58,341 | — | 58,341 | 53,597 | — | 53,597 | |||||||||||||||||
Operations and maintenance | 53,386 | — | 53,386 | 49,138 | — | 49,138 | |||||||||||||||||
Depreciation and amortization | 84,896 | — | 84,896 | 83,476 | — | 83,476 | |||||||||||||||||
General and administrative | 53,633 | 2,196 | 55,829 | 50,195 | 1,284 | 51,479 | |||||||||||||||||
Taxes, other than income taxes | 24,727 | — | 24,727 | 21,796 | — | 21,796 | |||||||||||||||||
Loss on disposal of assets | 1,849 | — | 1,849 | 4,795 | — | 4,795 | |||||||||||||||||
Total Operating Costs and Expenses | 348,752 | 2,196 | 350,948 | 338,282 | 1,284 | 339,566 | |||||||||||||||||
Operating Income | 256,370 | (2,196 | ) | 254,174 | 197,915 | (1,284 | ) | 196,631 | |||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||
Interest expense, net | (40,688 | ) | (4,913 | ) | (45,601 | ) | (15,514 | ) | (2,816 | ) | (18,330 | ) | |||||||||||
Unrealized loss on derivative instrument | (1,291 | ) | — | (1,291 | ) | — | — | — | |||||||||||||||
Equity in earnings of unconsolidated investment | 51,780 | — | 51,780 | — | — | — | |||||||||||||||||
Other income, net | 1,723 | — | 1,723 | 2,413 | — | 2,413 | |||||||||||||||||
Total Other Income (Expense) | 11,524 | (4,913 | ) | 6,611 | (13,101 | ) | (2,816 | ) | (15,917 | ) | |||||||||||||
Net income before tax | 267,894 | (7,109 | ) | 260,785 | 184,814 | (4,100 | ) | 180,714 | |||||||||||||||
Deferred income tax (expense) benefit | — | (17,741 | ) | (17,741 | ) | — | 7,277 | 7,277 | |||||||||||||||
Net income | 267,894 | (24,850 | ) | 243,044 | 184,814 | 3,177 | 187,991 | ||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (4,365 | ) | (211,885 | ) | (216,250 | ) | (24,268 | ) | (131,767 | ) | (156,035 | ) | |||||||||||
Net income attributable to TEGP | $ | 263,529 | $ | (236,735 | ) | $ | 26,794 | $ | 160,546 | $ | (128,590 | ) | $ | 31,956 | |||||||||
Allocation of income: | |||||||||||||||||||||||
Net income attributable to TEGP prior to May 12, 2015 | $ | — | $ | (7,393 | ) | ||||||||||||||||||
Net income attributable to TEGP subsequent to May 12, 2015 | 26,794 | 24,563 | |||||||||||||||||||||
Basic net income per Class A share | $ | 0.55 | $ | 0.51 | |||||||||||||||||||
Diluted net income per Class A share | $ | 0.55 | $ | 0.51 | |||||||||||||||||||
Basic average number of Class A shares outstanding | 48,856 | 47,725 | |||||||||||||||||||||
Diluted average number of Class A shares outstanding | 48,889 | 47,808 |
(1) | Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for TEGP. |