The EnLink Midstream companies, EnLink Midstream Partners, LP
(NYSE: ENLK) (the Partnership) and EnLink Midstream, LLC
(NYSE: ENLC) (the General Partner), today reported results for the
second quarter of 2015.
Second Quarter 2015 — EnLink Midstream Partners, LP Financial
Results
The Partnership realized adjusted EBITDA of $174.9 million and
distributable cash flow of $134.1 million in the second quarter of
2015, compared with adjusted EBITDA of $113.2 million and
distributable cash flow of $94.9 million in the second quarter of
2014. The Partnership's net income from continuing operations was
$55.4 million and net cash provided by operating activities was
$120.6 million in the second quarter of 2015, compared with net
income from continuing operations of $81.9 million and net cash
provided by operating activities of $99.6 million in the second
quarter of 2014.
The Partnership’s gross operating margin was $306.3 million and
operating income was $72.5 million in the second quarter of 2015,
compared with gross operating margin of $265.3 million and
operating income of $91.1 million in the second quarter of 2014.
Adjusted EBITDA, distributable cash flow and gross operating margin
are explained in greater detail under "Non-GAAP Financial
Information," and reconciliations of these measures to their most
directly comparable GAAP measures are included in the tables at the
end of this news release.
“We are pleased to have delivered strong performance in the
first half of 2015, particularly given the current commodity price
environment,” said Barry E. Davis, EnLink President and Chief
Executive Officer. “We are uniquely positioned and continue to
execute on our plan. With our fee based contracts, the strong
sponsorship of Devon, attractive asset platform and strong balance
sheet, we are confident we can continue to deliver strong
performance and growth.”
The Partnership’s operating and reporting segments are based
principally upon geographic regions served and consist of the
following: the Texas segment, which includes natural gas gathering,
processing, transmission and fractionation operations located in
north Texas and west Texas; the Louisiana segment, which includes
pipelines, processing plants and NGL assets located in Louisiana;
the Oklahoma segment, which includes natural gas gathering and
processing operations located in Oklahoma; the Crude and Condensate
segment, which previously was referred to as the Ohio River Valley
segment, and which includes rail, truck, pipeline and barge
facilities to deliver crude and condensate in Texas, Louisiana and
the Ohio River Valley and brine disposal wells in the Ohio River
Valley; and the corporate segment, which includes operating
activity for intersegment eliminations and gains or losses from
derivative activities.
Each business segment’s contribution to the second quarter 2015
gross operating margin compared with second quarter 2014, and the
factors affecting those contributions, is described below:
- The Texas segment had a decrease in
gross operating margin of $3.4 million for the three months ended
June 30, 2015 compared to the three months ended June 30, 2014. The
decrease was primarily driven by a $15.6 million decrease
attributable to a decline in throughput volumes on our North Texas
gathering, transmission and processing assets. This decline was
partially offset by an increase of $12.2 million in the Permian
Basin primarily due to the Coronado acquisition and organic growth
of the Bearkat assets.
- The Oklahoma segment had a decrease in
gross operating margin of $8.5 million for the three months ended
June 30, 2015 compared to the three months ended June 30, 2014. Of
this decrease, $5.5 million is attributable to a decline in
volumes. In addition, our Cana Plant was operating at partial
capacity from April to late June 2015 for plant repairs resulting
in a decrease in gross operating margin of $3.0 million.
- The Louisiana segment had an increase
in gross operating margin of $17.8 million for the three months
ended June 30, 2015 as compared to the three months ended June 30,
2014. This increase was primarily driven by the completion of the
Cajun-Sibon expansion in September 2014, which increased gross
operating margin by $16.1 million. In addition, the Louisiana
natural gas processing, gathering and transmission assets
contributed an increase of $1.7 million primarily due to the gross
operating margins contributed by the gulf coast natural gas
pipeline assets acquired from Chevron in November 2014, which was
partially offset by declines from other Louisiana gas assets.
- The Crude and Condensate segment had an
increase in gross operating margin of $32.3 million for the three
months ended June 30, 2015 compared to the three months ended June
30, 2014. This increase was partly due to the acquisition of the
LPC assets in January 2015, which contributed $14.9 million, and
the Victoria Express (VEX) pipeline, which commenced operations in
July 2014 and contributed $4.2 million. In addition, gross
operating margin increased by $4.8 million from our E2 assets due
to the commercial start-up of three compression and condensate
stabilization stations during the fourth quarter of 2014 and first
quarter of 2015. The remaining increase is primarily attributable
to the receipt of a one-time termination payment of $10.3 million
in connection with the termination of a customer contract in June
2015.
- The Corporate segment had an increase
in gross operating margin of $2.8 million due to a gain on
derivative activities.
The Partnership’s second quarter 2015 operating expenses were
$109.1 million, an increase of $35.2 million, or 47.6%, from the
second quarter of 2014. General and administrative expenses
increased by $1.2 million from the second quarter of 2014.
Depreciation and amortization expense increased by $23.2 million,
or 31.1%, from the second quarter of 2014. These increases were
primarily due to the acquisitions of LPC Oil Marketing, LLC,
Coronado Midstream Holdings, LLC and the gulf coast natural gas
pipeline assets from Chevron. Net interest expense increased by
$9.2 million, or 69.7%, from the second quarter of 2014 due to an
increase in average debt. Income from equity investment increased
by $1.4 million from the second quarter of 2014.
Net income per limited partner common unit for the second
quarter of 2015 was $0.12 per common unit compared with net income
of $0.17 per common unit for the second quarter of 2014.
Second Quarter 2015 — EnLink Midstream, LLC Financial
Results
The General Partner reported net income of $44.6 million for the
second quarter of 2015 compared with net income of $62.4 million in
the second quarter of 2014. The General Partner’s cash available
for distribution was $52.0 million compared with cash available for
distribution of $67.1 million in the second quarter of 2014, which
resulted in a 1.25x coverage ratio on the declared distribution of
$0.25 per General Partner unit for the quarter. Cash available for
distribution is explained in greater detail under "Non-GAAP
Financial Information," and a reconciliation of this measure to its
most directly comparable GAAP measure is included in the tables at
the end of this news release.
EnLink Midstream to Hold Earnings Conference Call on August
5, 2015
EnLink Midstream, LLC (NYSE: ENLC) (the General Partner) and
EnLink Midstream Partners, LP (NYSE: ENLK) (the Partnership) will
hold a conference call to discuss second quarter financial results
on Wednesday, August 5, 2015, at 9:00 a.m. Central time
(10:00 a.m. Eastern time).
The dial-in number for the call is 1-855-656-0924. Callers
outside the United States should dial 1-412-542-4172. Participants
can also preregister for the conference call by navigating to
http://dpregister.com/10068136 where they will receive their
dial-in information upon completion of their preregistration.
Interested parties can access an archived replay of the call on
the Investors page of EnLink Midstream’s website at
www.enlink.com.
About the EnLink Midstream Companies
EnLink Midstream is a leading, integrated midstream company with
a diverse geographic footprint and a strong financial foundation,
delivering tailored customer solutions for sustainable growth.
EnLink Midstream is publicly traded through two entities: EnLink
Midstream, LLC (NYSE: ENLC), the publicly traded general partner
entity, and EnLink Midstream Partners, LP (NYSE: ENLK), the master
limited partnership. EnLink Midstream’s assets are located in many
of North America’s premier oil and gas regions, including the
Barnett Shale, Permian Basin, Cana-Woodford Shale, Arkoma-Woodford
Shale, Eagle Ford Shale, Haynesville Shale, Gulf Coast region,
Utica Shale and Marcellus Shale. Based in Dallas, Texas, EnLink
Midstream’s assets include over 9,200 miles of gathering and
transportation pipelines, 16 processing plants with 3.6 billion
cubic feet per day of processing capacity, seven fractionators with
280,000 barrels per day of fractionation capacity, as well as barge
and rail terminals, product storage facilities, purchase and
marketing capabilities, brine disposal wells, an extensive crude
oil trucking fleet and equity investments in certain private
midstream companies. Additional information about the EnLink
companies can be found at www.enlink.com.
Non-GAAP Financial Information
This press release contains non-generally accepted accounting
principle financial measures that we refer to as adjusted EBITDA,
distributable cash flow, gross operating margin, maintenance
capital expenditures and the General Partner's cash available for
distribution. We define adjusted EBITDA as net income from
continuing operations plus interest expense, provision for income
taxes, depreciation and amortization expense, unit-based
compensation, (gain) loss on noncash derivatives, transaction
costs, distribution of equity investment and non-controlling
interest and income (loss) on equity investment. We define
distributable cash flow as net cash provided by operating
activities plus adjusted EBITDA, net to EnLink Midstream Partners,
LP, less interest expense, litigation settlement adjustment,
interest rate swap proceeds, cash taxes and other, maintenance
capital expenditures and the adjusted EBITDA of EnLink Midstream
Holdings, LP ("Midstream Holdings" and for the period ended prior
to March 7, 2014, "Predecessor"). Gross operating margin is defined
as revenue minus the cost of sales. Cash available for distribution
is defined as distributions due to the General Partner from the
Partnership and the General Partner's interest in Midstream
Holdings' adjusted EBITDA (as defined herein), less maintenance
capital, the General Partner's specific general and administrative
costs as a separate public reporting entity, the interest costs
associated with the General Partner's debt and current taxes
attributable to the General Partner's earnings.
The amounts included in the calculation of these measures are
computed in accordance with generally accepted accounting
principles (GAAP) with the exception of maintenance capital
expenditures and the adjusted EBITDA of Midstream Holdings.
Maintenance capital expenditures are capital expenditures made to
replace partially or fully depreciated assets in order to maintain
the existing operating capacity of the assets and to extend their
useful lives. Adjusted EBITDA of Midstream Holdings is defined as
Midstream Holdings' earnings plus depreciation, provisions for
income taxes and distribution of equity investment less income on
equity investment.
The Partnership and General Partner believe these measures are
useful to investors because they may provide users of this
financial information with meaningful comparisons between current
results and prior-reported results and a meaningful measure of the
Partnership’s and the General Partner's cash flow after it has
satisfied the capital and related requirements of its
operations.
Gross operating margin, adjusted EBITDA, distributable cash
flow, maintenance capital expenditures and cash available for
distribution, as defined above, are not measures of financial
performance or liquidity under GAAP. They should not be considered
in isolation or as an indicator of the Partnership’s and the
General Partner's performance. Furthermore, they should not be seen
as a substitute for metrics prepared in accordance with GAAP.
Reconciliations of these measures to their most directly comparable
GAAP measures are included in the following tables.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Although these
statements reflect the current views, assumptions and expectations
of our management, the matters addressed herein involve certain
risks and uncertainties that could cause actual activities,
performance, outcomes and results to differ materially from those
indicated. Such forward-looking statements include, but are not
limited to, statements about future financial and operating
results, projected or forecasted financial results, objectives,
project timing, expectations and intentions and other statements
that are not historical facts. Factors that could result in such
differences or otherwise materially affect our financial condition,
results of operations and cash flows include, without limitation,
(a) the dependence on Devon for a substantial portion of the
natural gas that we gather, process and transport, (b) our
lack of asset diversification, (c) our vulnerability to having
a significant portion of our operations concentrated in the Barnett
Shale, (d) the amount of hydrocarbons transported in our
gathering and transmission lines and the level of our processing
and fractionation operations, (e) fluctuations in oil, natural
gas and NGL prices, (f) construction risks in our major
development projects, (g) our ability to consummate future
acquisitions, successfully integrate any acquired businesses and
realize any cost savings and other synergies from any acquisition,
(h) changes in the availability and cost of capital,
(i) competitive conditions in our industry and their impact on
our ability to connect hydrocarbon supplies to our assets,
(j) operating hazards, natural disasters, weather-related
delays, casualty losses and other matters beyond our control, (k) a
failure in our computing systems or a cyber-attack on our systems,
and (l) the effects of existing and future laws and
governmental regulations, including environmental and climate
change requirements and other uncertainties. These and other
applicable uncertainties, factors and risks are described more
fully in EnLink Midstream Partners, LP’s and EnLink Midstream,
LLC’s filings with the Securities and Exchange Commission,
including EnLink Midstream Partners, LP’s and EnLink Midstream,
LLC’s Annual Reports on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K. Neither EnLink
Midstream Partners, LP nor EnLink Midstream, LLC assumes any
obligation to update these forward-looking statements.
EnLink Midstream Partners, LP
Selected Financial Data (All amounts in millions except
per unit amounts) Three Months Ended Six
Months Ended June 30, June 30, 2015
2014 2015 2014
(Unaudited) Total revenues $ 1,274.5 $ 927.2 $
2,215.0 $ 1,650.3 Cost of sales (1) 968.2 661.9
1,625.6 1,200.8 Gross operating margin 306.3
265.3 589.4 449.5 Operating costs and expenses: Operating expenses
(2) 109.1 73.9 207.6 120.6 General and administrative (3) 27.0 25.8
68.8 41.3 Depreciation and amortization 97.7 74.5
189.0 123.0 Total operating costs and expenses 233.8
174.2 465.4 284.9 Operating income 72.5
91.1 124.0 164.6 Other income (expense): Interest expense, net of
interest income (22.4 ) (13.2 ) (41.3 ) (18.0 ) Equity in income of
equity investment 5.9 4.5 9.7 8.7 Gain on extinguishment of debt —
0.8 — 0.8 Other income (expense) 0.1 (0.1 ) 0.6 (0.8
) Total other expense (16.4 ) (8.0 ) (31.0 ) (9.3 ) Income from
continuing operations before non-controlling interest and income
taxes 56.1 83.1 93.0 155.3 Income tax provision (0.7 ) (1.2 ) (1.9
) (20.8 ) Income from discontinued operations, net of tax —
— — 1.0 Discontinued operations, net of tax —
— — 1.0 Net income 55.4 81.9
91.1 135.5 Net income (loss) attributable to
the non-controlling interest (0.1 ) 0.1 — 0.1
Net income attributable to EnLink Midstream Partners, LP $ 55.5
$ 81.8 $ 91.1 $ 135.4 Predecessor
interest in net income (4) $ — $ — $ — $ 35.5
General partner interest in net income $ 19.1 $ 43.5
$ 45.6 $ 53.9 Limited partners’ interest in
net income attributable to EnLink Midstream Partners, LP $ 35.7
$ 38.3 $ 44.7 $ 46.0 Class C partners'
interest in net income attributable to EnLink Midstream Partners,
LP $ 0.7 $ — $ 0.8 $ — Net income
attributable to EnLink Midstream Partners, LP per limited partners’
unit: Basic per common unit $ 0.12 $ 0.17 $ 0.16
$ 0.20 Diluted per common unit $ 0.12 $ 0.17
$ 0.16 $ 0.20 (1) Includes $32.0
million for the three months ended June 30, 2015 and $39.9 million
and $325.8 million for the six months ended June 30, 2015 and 2014,
respectively, of affiliate cost of sales. (2) Includes $0.2 million
for the three and six months ended June 30, 2015 and $5.9 million
for the six months ended June 30, 2014 of affiliate operating
expenses. (3) Includes $0.1 million for the three and six months
ended June 30, 2015 and includes $1.1 million for the three months
ended June 30, 2014 and $9.6 million for the six months ended June
30, 2014 of affiliate general and administrative expenses. (4)
Represents net income attributable to the Predecessor for the
period prior to March 7, 2014.
EnLink Midstream Partners, LP Reconciliation of Net
Income to Adjusted EBITDA and Distributable Cash Flow (All
amounts in millions except ratios and per unit amounts)
Three Months Ended Six Months Ended June 30,
June 30, 2015 2014 2015
2014 Net income from continuing operations $ 55.4 $ 81.9 $
91.1 $ 134.5 Interest expense 22.4 13.2 41.3 18.0 Depreciation and
amortization 97.7 74.5 189.0 123.0 Income from equity investments
(5.9 ) (4.5 ) (9.7 ) (8.7 ) Distribution from equity investments
12.4 3.0 19.2 5.7 Unit-based compensation 7.6 5.7 21.4 9.7 Income
taxes 0.7 1.2 1.9 20.8 Payments under onerous performance
obligation offset to other current and long-term liabilities (4.5 )
(4.5 ) (9.0 ) (5.7 ) Other (1) 4.6 0.8 15.4
2.1 Adjusted EBITDA before non-controlling interest $ 190.4
$ 171.3 $ 360.6 $ 299.4 Non-controlling
interest share of adjusted EBITDA 0.1 (0.1 ) — (0.1 ) Transferred
interest adjusted EBITDA (2) (15.6 ) (58.0 ) (55.8 ) (72.4 )
Predecessor adjusted EBITDA (3) — — — (82.8 )
Adjusted EBITDA, net to EnLink Midstream Partners, LP $ 174.9
$ 113.2 $ 304.8 $ 144.1 Interest
expense (22.4 ) (13.2 ) (41.3 ) (18.0 ) Non-cash valuation
adjustment (0.7 ) — (3.3 ) — Interest rate swap (4) (3.6 ) — (3.6 )
— Cash taxes and other (0.6 ) (0.8 ) (1.6 ) (0.8 ) Maintenance
capital expenditures (5) (13.5 ) (4.3 ) (22.3 ) (5.8 )
Distributable cash flow $ 134.1 $ 94.9 $ 232.7
$ 119.5 Actual declared distribution (6) $ 127.3 $ 90.9 $
239.0 $ 146.0 Distribution coverage 1.05x 1.03x 0.97x 0.82x
Distributions declared per limited partner unit $ 0.385 $ 0.365 $
0.765 $ 0.725 (1) Includes financial derivatives
marked-to-market, accretion expense associated with asset
retirement obligations, reimbursed employee costs from Devon and
LPC, and acquisition transaction costs. (2) Represents recast E2,
Midstream Holdings and VEX adjusted EBITDA prior to the date of the
drop down of the respective assets or interests from ENLC and
Devon. (3) Represents Predecessor's adjusted EBITDA for the period
from January 1, 2014 through March 7, 2014. (4) During the second
quarter of 2015, we entered into interest rate swap arrangements to
mitigate our exposure to interest rate movements prior to our note
issuances. The gain on settlement of the interest rate swaps was
considered excess proceeds for the note issuance, and therefore,
excluded from distributable cash flow. (5) Maintenance capital
expenditures presented in the Partnership’s reconciliation to
distributable cash flows above include only (i) expenditures of the
Partnership incurred at or after March 7, 2014 and (ii) the
Partnership's interest of the expenditures of Midstream Holdings
incurred at or after March 7, 2014. Maintenance capital
expenditures prior to March 7, 2014 of $4.6 million were excluded
from the reconciliation to distributable cash flow because they
represent the cash flows of the Predecessor which were not
available for distribution. Prior to March 7, 2014 these assets
were owned by Devon, and therefore, all cash flow from these assets
were distributed to Devon. (6) The actual declared distribution
does not assume full quarter distributions on the Class B units in
the first quarter of 2014, Class D units in the first quarter of
2015, or Class E units in the second quarter of 2015.
EnLink Midstream Partners, LP
Reconciliation of Net Cash Provided by Operating Activities to
Adjusted EBITDA and Distributable Cash Flow (All
amounts in millions) Three Months Ended Six
Months Ended June 30, June 30, 2015
2014 2015 2014 Net cash provided by
operating activities $ 120.6 $ 99.6 $ 292.3 $ 221.4 Interest
expense, net (1) 23.0 13.5 44.7 18.6 Unit-based compensation (2) —
— — 2.8 Current income tax 0.7 0.7 1.9 0.8 Distributions from
equity investments in excess of earnings 4.8 2.4 8.9 5.0 Other (3)
1.9 0.2 8.8 (0.7 ) Changes in operating assets and liabilities
which provided cash: Accounts receivable, accrued revenues,
inventories and other 61.5 41.0 (57.3 ) (5.0 ) Accounts payable,
accrued purchases and other (4) (22.1 ) 13.9 61.3
56.5 Adjusted EBITDA before non-controlling interest 190.4
171.3 360.6 299.4 Non-controlling interest share of adjusted EBITDA
0.1 (0.1 ) — (0.1 ) Transferred interest adjusted EBITDA (5) (15.6
) (58.0 ) (55.8 ) (72.4 ) Predecessor adjusted EBITDA (6) —
— — (82.8 ) Adjusted EBITDA, net to EnLink Midstream
Partners, LP $ 174.9 $ 113.2 $ 304.8 $ 144.1
Interest expense (22.4 ) (13.2 ) (41.3 ) (18.0 ) Non-cash
adjustment for mandatorily redeemable non-controlling interest (0.7
) — (3.3 ) — Interest rate swap (7) (3.6 ) — (3.6 ) — Cash taxes
and other (0.6 ) (0.8 ) (1.6 ) (0.8 ) Maintenance capital
expenditures (8) (13.5 ) (4.3 ) (22.3 ) (5.8 ) Distributable cash
flow $ 134.1 $ 94.9 $ 232.7 $ 119.5
(1) Net of amortization of debt issuance costs,
discount and premium, and valuation adjustment for mandatorily
redeemable non-controlling interest included in interest expense.
(2) Represents Predecessor stock-based compensation contributed
through equity and reflected in net distributions to Predecessor in
cash flows from financing activities in the Consolidated Statements
of Cash Flows. (3) Includes transaction costs and reimbursed
employee costs from Devon and LPC. (4) Net of payments under
onerous performance obligation offset to other current and
long-term liabilities. (5) Represents recast E2, EMH and VEX
adjusted EBITDA prior to the date of the drop down of the
respective assets or interests from ENLC and Devon as applicable.
(6) Represents Predecessor's adjusted EBITDA for the period from
January 1, 2014 through March 7, 2014. (7) During the second
quarter of 2015, we entered into interest rate swap arrangements to
mitigate our exposure to interest rate movements prior to our note
issuances. The gain on settlement of the interest rate swaps was
considered excess proceeds for the note issuance, and therefore,
excluded from distributable cash flow. (8) Maintenance capital
expenditures presented in the Partnership’s reconciliation to
distributable cash flows above include only (i) expenditures of the
Partnership incurred at or after March 7, 2014 and (ii) the
Partnership's interest of the expenditures of Midstream Holdings
incurred at or after March 7, 2014. Maintenance capital
expenditures prior to March 7, 2014 of $4.6 million were excluded
from the reconciliation to distributable cash flow because they
represent the cash flows of the Predecessor which were not
available for distribution. Prior to March 7, 2014 these assets
were owned by Devon, and therefore, all cash flow from these assets
were distributed to Devon.
EnLink
Midstream Partners, LP Operating Data Three
Months Ended Six Months Ended June 30, June
30, 2015 2014 2015
2014 Midstream Volumes: Texas (1) Gathering
and Transportation (MMBtu/d) 2,727,800 2,994,400 2,739,300
2,977,200 Processing (MMBtu/d) 1,262,000 1,156,700 1,199,500
1,146,600
Louisiana (2) Gathering and Transportation
(MMBtu/d) 1,383,300 429,600 1,369,400 426,900 Processing (MMBtu/d)
520,400 591,900 477,600 602,800 NGL Fractionation (Gals/d)
5,862,800 3,360,400 5,748,200 3,355,100
Oklahoma (3)
Gathering and Transportation (MMBtu/d) 413,000 512,500 422,400
461,900 Processing (MMBtu/d) 268,200 458,400 312,100 441,600
Crude and Condensate (2) Crude Oil Handling (Bbls/d) 141,000
16,300 122,400 16,000 Brine Disposal (Bbls/d) 3,700 5,200 3,700
5,300 (1) Volumes for the six month period ended June
30, 2014 includes volumes per day based on a 181-day period for
Midstream Holdings operations plus incremental volumes based on the
116-day period from March 7 to June 30, 2014 for the Partnership’s
legacy operations in Texas. (2) Volumes include volumes per day
based on 91 days for the three months ended June 30, 2014 and based
on the 116-day period from March 7 to June 30, 2014 for the six
months ended June 30, 2014 for the Partnership’s legacy operations.
Midstream Holdings does not have any operations in Louisiana or
Crude and Condensate segments. The VEX pipeline did not commence
operation until July 2014. (3) Volumes include volumes per day
based on 91 and 181-day periods for the three and six months ended
June 30, 2014, respectively, for Midstream Holdings' operations.
The Partnership did not have any legacy operations in Oklahoma.
EnLink Midstream, LLC
Selected Financial Data (All amounts in millions except
per unit amounts) Three Months Ended Six
Months Ended June 30, June 30, 2015
2014 2015 2014
(Unaudited) Total revenues $ 1,274.5 $ 927.2 $
2,215.0 $ 1,650.3 Cost of sales (1) 968.2 661.9
1,625.6 1,200.8 Gross operating margin 306.3
265.3 589.4 449.5 Operating costs and expenses: Operating expenses
(2) 109.1 73.9 207.6 120.6 General and administrative (3) 28.1 26.6
70.8 42.5 Depreciation and amortization 97.7 75.0
189.0 123.5 Total operating costs and expenses 234.9
175.5 467.4 286.6 Operating income 71.4
89.8 122.0 162.9 Other income (expense): Interest expense, net of
interest income (22.6 ) (14.1 ) (41.7 ) (19.5 ) Equity in income of
equity investment 5.9 4.5 9.7 8.7 Gain on extinguishment of debt —
0.8 — 0.8 Other income (expense) 0.1 (0.1 ) 0.5 (0.8
) Total other expense (16.6 ) (8.9 ) (31.5 ) (10.8 ) Income from
continuing operations before non-controlling interest and income
taxes 54.8 80.9 90.5 152.1 Income tax provision (10.2 ) (18.5 )
(20.9 ) (42.2 ) Income from discontinued operations, net of tax —
— — 1.0 Discontinued operations, net of
tax — — — 1.0 Net income $ 44.6
$ 62.4 $ 69.6 $ 110.9 Net income attributable
to the non-controlling interest 28.4 35.7 36.4
42.8 Net income attributable to EnLink Midstream, LLC $ 16.2
$ 26.7 $ 33.2 $ 68.1 Predecessor
interest in net income (4) $ — $ — $ — $ 35.5
Devon investment interest in net income $ 1.7 $ (2.1
) $ 2.4 $ (3.0 ) EnLink Midstream, LLC interest in net
income $ 14.5 $ 28.8 $ 30.8 $ 35.6 Net
income attributable to EnLink Midstream Partners, LP per limited
partners’ unit: Basic per common unit $ 0.09 $ 0.18 $
0.19 $ 0.22 Diluted per common unit $ 0.09 $
0.18 $ 0.19 $ 0.22 (1) Includes
$32.0 million for the three months ended June 30, 2015 and $39.9
million and $325.8 million for the six months ended June 30, 2015
and 2014, respectively, of affiliate cost of sales. (2) Includes
$0.2 million for the three and six months ended June 30, 2015 and
$5.9 million for the six months ended June 30, 2014 of affiliate
operating expenses. (3) Includes $0.1 million for the three and six
months ended June 30, 2015 and $1.1 million and $9.6 million for
the three and six months ended June 30, 2014, respectively, of
affiliate general and administrative expenses. (4) Represents net
income attributable to the Predecessor for the period prior to
March 7, 2014.
EnLink Midstream,
LLC Cash Available for Distribution (All amounts in
millions except ratios and per unit amounts) Three
Months Ended Six Months Ended June 30, June
30, 2015 2014 2015
2014 Distribution declared by ENLK associated with (1):
General partner interest $ 0.6 $ 0.6 $ 1.2 $ 1.0 Incentive
distribution rights 11.3 5.9 20.1 9.3 ENLK common units owned 24.3
6.0 36.6 11.9
Total share of ENLK distributions declared $ 36.2 $ 12.5 $
57.9 $ 22.2 Transferred interest EBITDA (2) 15.6 58.4
53.7 73.4 Total cash
available $ 51.8 $ 70.9 $ 111.6 $ 95.6 Uses of cash: General and
administrative expenses (1.0 ) (0.8 ) (1.8 ) (1.8 ) Current income
tax expense (3) 2.9 (0.4 ) (1.2 ) (0.5 ) Interest expense (0.1 )
(0.8 ) (0.4 ) (1.1 ) Maintenance capital expenditures (4) (1.6 )
(1.8 ) (4.0 ) (3.1 ) Total cash used $
0.2 $ (3.8 ) $ (7.4 ) $ (6.5 )
ENLC cash available for distribution $ 52.0 $ 67.1
$ 104.2 $ 89.1
Distribution declared per ENLC unit $ 0.25 $ 0.22 $ 0.495 $ 0.400
Cash distribution declared $ 41.4 $ 36.2 $ 81.9 $ 50.8 Distribution
coverage 1.25x 1.85x 1.27x 1.75x (1) Represents
distributions paid to ENLC on May 14, 2015 and distributions
declared by ENLK and to be paid to ENLC on August 13, 2015. (2)
Represents ENLC's interest in Midstream Holdings' adjusted EBITDA
prior to the EMH Drop Downs. (3) Represents ENLC’s stand-alone
current tax expense. (4) Represents ENLC's interest in Midstream
Holdings' maintenance capital expenditures prior to the EMH Drop
Downs which is netted against the monthly disbursement of Midstream
Holdings' adjusted EBITDA per (2) above.
EnLink Midstream, LLC Reconciliation of Net Income
of ENLC to ENLC Cash Available for Distribution (All amounts
in millions) Three Months Ended Six Months
Ended June 30, June 30, 2015
2014 2015 2014 Net income of ENLC $
44.6 $ 62.4 $ 69.6 $ 109.9 Less: Net income attributable to ENLK
(55.5 ) (81.8 ) (91.1 ) (135.4 ) Net income of ENLC excluding ENLK
$ (10.9 ) $ (19.4 ) $ (21.5 ) $ (25.5 ) ENLC's share of
distributions from ENLK (1) 36.2 12.5 57.9 22.2 ENLC deferred
income tax expense (2) 12.4 17.3 17.8 21.5 Maintenance capital
expenditures (3) (1.6 ) (1.8 ) (4.0 ) (3.1 ) Transferred interest
EBITDA (4) 15.6 58.4 53.7 73.4 Other items (5) 0.3 0.1
0.3 0.6 ENLC cash available for distribution $
52.0 $ 67.1 $ 104.2 $ 89.1 (1)
Represents distributions paid to ENLC on May 14, 2015 and
distributions declared by ENLK and to be paid to ENLC on August 13,
2015. (2) Represents ENLC's stand-alone deferred taxes. (3)
Represents ENLC's interest in Midstream Holdings' maintenance
capital expenditures prior to the EMH Drop Downs, which is netted
against the monthly disbursement of Midstream Holdings' adjusted
EBITDA prior to the EMH Drop Downs. (4) Represents ENLC's interest
in Midstream Holdings' adjusted EBITDA prior to the completion of
the drop down transactions of ENLC's interest in Midstream
Holdings. (5) Represents E2's adjusted EBITDA and other non-cash
items not included in cash available for distributions.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150805005478/en/
EnLink MidstreamJill McMillan, 214-721-9271Vice
President of Communications and Investor
RelationsJill.McMillan@enlink.com
EnLink Midstream Partners, LP (NYSE:ENLK)
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