Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 25, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Fiscal Period Focus | Q1 | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Amendment Flag | false | |
Entity Registrant Name | ENLINK MIDSTREAM PARTNERS, LP | |
Entity Central Index Key | 0001179060 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 144,358,720 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 0.1 | $ 99.5 |
Accounts receivable: | ||
Trade, net of allowance for bad debt of $0.5 and $0.3, respectively | 104.2 | 126.3 |
Accrued revenue and other | 634.2 | 705.9 |
Related party | 19.5 | 2.1 |
Fair value of derivative assets | 8.7 | 28.6 |
Natural gas and NGLs inventory, prepaid expenses, and other | 71.8 | 72.8 |
Total current assets | 838.5 | 1,035.2 |
Property and equipment, net of accumulated depreciation of $3,080.1 and $2,967.4, respectively | 6,975.4 | 6,846.7 |
Intangible assets, net of accumulated amortization of $453.1 and $422.2, respectively | 1,342.7 | 1,373.6 |
Goodwill | 190.3 | 190.3 |
Investment in unconsolidated affiliates | 82.9 | 80.1 |
Fair value of derivative assets | 4.6 | 4.1 |
Other assets, net | 117.9 | 41.3 |
Total assets | 9,552.3 | 9,571.3 |
Current liabilities: | ||
Accounts payable and drafts payable | 103.4 | 105.5 |
Accounts payable to related party | 2.6 | 4.3 |
Accrued gas, NGLs, condensate, and crude oil purchases | 492.6 | 500.4 |
Fair value of derivative liabilities | 6.6 | 21.8 |
Current maturities of long-term debt | 0 | 399.8 |
Other current liabilities | 227.8 | 246.7 |
Total current liabilities | 833 | 1,278.5 |
Long-term debt, including $898.4 million from affiliates | 4,364.2 | 3,919.8 |
Asset retirement obligations | 15 | 14.8 |
Other long-term liabilities | 89.5 | 20 |
Deferred tax liability | 42.4 | 42.4 |
Fair value of derivative liabilities | 0.2 | 2.4 |
Redeemable non-controlling interest | 7.2 | 9.3 |
Partners’ equity: | ||
Common unitholders (144,358,720 and 353,117,434 units issued and outstanding, respectively) | 2,369.9 | 2,460.8 |
General partner interest (1,594,974 equivalent units outstanding) | 218.4 | 231.2 |
Accumulated other comprehensive loss | (2.1) | (2.1) |
Non-controlling interest | 322.1 | 309.8 |
Total partners’ equity | 4,200.8 | 4,284.1 |
Total liabilities and partners’ equity | 9,552.3 | 9,571.3 |
Series B Preferred Unitholders | ||
Partners’ equity: | ||
Preferred unitholders | 891.4 | 889.3 |
Series C Preferred Unitholders | ||
Partners’ equity: | ||
Preferred unitholders | $ 401.1 | $ 395.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||
Allowance for bad debt | $ 500,000 | $ 300,000 |
Accumulated depreciation | 3,080,100,000 | 2,967,400,000 |
Accumulated amortization | 453,100,000 | $ 422,200,000 |
Long term debt due from affiliates | $ 898.4 | |
Partners’ equity: | ||
Common units issued (in shares) | 144,358,720 | 353,117,434 |
Common units outstanding (in shares) | 144,358,720 | 353,117,434 |
General partner interest, equivalent units outstanding (in shares) | 1,594,974 | 1,594,974 |
Series B Preferred Unitholders | ||
Partners’ equity: | ||
Preferred units issued (in shares) | 59,154,779 | 58,728,994 |
Preferred unit outstanding (in shares) | 59,154,779 | 58,728,994 |
Series C Preferred Unitholders | ||
Partners’ equity: | ||
Preferred unit outstanding (in shares) | 400,000 | 400,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenues: | |||
Revenue from contracts with customers | $ 1,777.4 | $ 1,761.2 | |
Gain on derivative activity | 1.8 | 0.5 | |
Total revenues | 1,779.2 | 1,761.7 | |
Operating costs and expenses: | |||
Cost of sales | [1] | 1,363.4 | 1,381.5 |
Operating expenses | 114.5 | 109.2 | |
General and administrative | 38.6 | 26.2 | |
Loss on disposition of assets | 0 | 0.1 | |
Depreciation and amortization | 152.1 | 138.1 | |
Total operating costs and expenses | 1,668.6 | 1,655.1 | |
Operating income | 110.6 | 106.6 | |
Other income (expense): | |||
Interest expense, net of interest income | (49.3) | (43.7) | |
Income from unconsolidated affiliates | 5.3 | 3 | |
Other income | 0 | 0.2 | |
Total other expense | (44) | (40.5) | |
Income before non-controlling interest and income taxes | 66.6 | 66.1 | |
Income tax provision | (0.9) | (1) | |
Net income | 65.7 | 65.1 | |
Net income attributable to non-controlling interest | 2.9 | 0.8 | |
Net income attributable to ENLK | 62.8 | 64.3 | |
General partner interest in net income (loss) | (9.3) | 14.8 | |
Limited partners’ interest in net income attributable to ENLK | 47.5 | 21.6 | |
Series B Preferred Unitholders | |||
Other income (expense): | |||
Preferred interest in net income attributable to ENLK | 18.6 | 21.9 | |
Series C Preferred Unitholders | |||
Other income (expense): | |||
Preferred interest in net income attributable to ENLK | 6 | 6 | |
Product sales | |||
Revenues: | |||
Revenue from contracts with customers | 1,530.9 | 1,499.2 | |
Product sales—related parties | |||
Revenues: | |||
Revenue from contracts with customers | 0 | 3.6 | |
Midstream services | |||
Revenues: | |||
Revenue from contracts with customers | 246.5 | 92.2 | |
Midstream services—related parties | |||
Revenues: | |||
Revenue from contracts with customers | $ 0 | $ 166.2 | |
[1] | Includes related party cost of sales of $8.1 million and $34.1 million for the three months ended March 31, 2019 and 2018, respectively. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Related party cost of sales | $ 8.1 | $ 34.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 65.7 | $ 65.1 |
Loss on designated cash flow hedge | (0.1) | 0 |
Comprehensive income | 65.6 | 65.1 |
Comprehensive income attributable to non-controlling interest | 0 | 0.8 |
Comprehensive income attributable to EnLink Midstream Partners, LP | $ 65.6 | $ 64.3 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partners' Equity - USD ($) shares in Millions, $ in Millions | Total | Non-Controlling Interest | Redeemable Noncontrolling Interest | Accumulated Other Comprehensive Loss | General Partner Interest | Common UnitsLimited Partner | Series B Preferred UnitholdersLimited Partner | Series C Preferred UnitholdersLimited Partner |
Beginning balance at Dec. 31, 2017 | $ 4,805.5 | $ 233.2 | $ (2.1) | $ 206.6 | $ 3,108.6 | $ 864.1 | $ 395.1 | |
Beginning balance (in shares) at Dec. 31, 2017 | 1.6 | 349.7 | 57.1 | 0.4 | ||||
Increase (Decrease) in Partners' Capital | ||||||||
Issuance of common units | 0.9 | $ 0.9 | ||||||
Issuance of common units (in shares) | 0.1 | |||||||
Conversion of restricted units for common units, net of units withheld for taxes | (2.7) | $ (2.7) | ||||||
Conversion of restricted units for common units, net of units withheld for taxes (in shares) | 0.4 | |||||||
Unit-based compensation | 8.8 | $ 4.4 | $ 4.4 | |||||
Distributions | (179) | (10) | (15.4) | (137.6) | $ (16) | $ 0 | ||
Distributions (in shares) | 0.4 | |||||||
Contributions from non-controlling interests | 33.3 | 33.3 | ||||||
Fair value adjustment related to redeemable non-controlling interest | (2.8) | 2.8 | ||||||
Net income (loss) | 65.1 | 0.8 | 14.8 | 21.6 | $ 21.9 | 6 | ||
Ending balance at Mar. 31, 2018 | 4,731.9 | 254.5 | (2.1) | $ 210.4 | $ 2,998 | $ 870 | $ 401.1 | |
Ending balance (in shares) at Mar. 31, 2018 | 1.6 | 350.2 | 57.5 | 0.4 | ||||
Beginning balance at Dec. 31, 2017 | $ 4.6 | |||||||
Increase (Decrease) in Temporary Equity | ||||||||
Fair value adjustment related to redeemable non-controlling interest | (2.8) | $ 2.8 | ||||||
Ending balance at Mar. 31, 2018 | 4.6 | |||||||
Beginning balance at Dec. 31, 2018 | 4,284.1 | 309.8 | (2.1) | $ 231.2 | $ 2,460.8 | $ 889.3 | $ 395.1 | |
Beginning balance (in shares) at Dec. 31, 2018 | 1.6 | 353.1 | 58.7 | 0.4 | ||||
Increase (Decrease) in Partners' Capital | ||||||||
Issuance of common units (in shares) | 55.8 | |||||||
Conversion of restricted units for common units, net of units withheld for taxes | (2.8) | $ (2.8) | ||||||
Conversion of restricted units for common units, net of units withheld for taxes (in shares) | 0.5 | |||||||
Unit-based compensation | 13.5 | $ 12.1 | $ 1.4 | |||||
Distributions | (177.8) | (6.3) | (15.6) | (139.4) | $ (16.5) | |||
Distributions (in shares) | 0.5 | |||||||
Contributions from non-controlling interests | 15.7 | 15.7 | ||||||
Fair value adjustment related to redeemable non-controlling interest | 2.1 | (2.1) | 2.1 | |||||
Conversion of ENLK common units into ENLC units | 0 | $ 0 | ||||||
Conversion of ENLK common units into ENLC units (in shares) | (265) | |||||||
Net income (loss) | 65.7 | 2.9 | (9.3) | $ 47.5 | $ 18.6 | $ 6 | ||
Ending balance at Mar. 31, 2019 | 4,200.8 | $ 322.1 | $ (2.1) | $ 218.4 | $ 2,369.9 | $ 891.4 | $ 401.1 | |
Ending balance (in shares) at Mar. 31, 2019 | 1.6 | 144.4 | 59.2 | 0.4 | ||||
Beginning balance at Dec. 31, 2018 | 9.3 | |||||||
Increase (Decrease) in Temporary Equity | ||||||||
Fair value adjustment related to redeemable non-controlling interest | $ 2.1 | (2.1) | $ 2.1 | |||||
Ending balance at Mar. 31, 2019 | $ 7.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 65.7 | $ 65.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 152.1 | 138.1 |
Non-cash unit-based compensation | 10.9 | 5.1 |
Gain on derivatives recognized in net income | (1.8) | (0.5) |
Cash settlements on derivatives | 4.6 | 3.1 |
Amortization of debt issue costs, net discount (premium) of notes | 1.8 | 1.5 |
Non-cash lease expense | 1.6 | 0 |
Distribution of earnings from unconsolidated affiliates | 2.2 | 4.6 |
Income from unconsolidated affiliates | (5.3) | (3) |
Other operating activities | (2) | 0.3 |
Changes in assets and liabilities, net of assets acquired and liabilities assumed: | ||
Accounts receivable, accrued revenue, and other | 76.2 | (63.3) |
Natural gas and NGLs inventory, prepaid expenses, and other | 3.6 | 7.7 |
Accounts payable, accrued product purchases, and other accrued liabilities | (51.5) | 34 |
Net cash provided by operating activities | 258.1 | 192.7 |
Cash flows from investing activities: | ||
Additions to property and equipment | (241.5) | (181.5) |
Other investing activities | 0.5 | 2.2 |
Net cash used in investing activities | (241) | (179.3) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 1,368.4 | 795 |
Payments on borrowings | (1,320) | (425) |
Payment of installment payable for EOGP acquisition | 0 | (250) |
Debt financing costs | (5.6) | 0 |
Proceeds from issuance of common units | 0 | 0.9 |
Distributions to non-controlling interests | (6.3) | (10) |
Contributions by non-controlling interests, including contributions from affiliates of $10.6 for the three months ended March 31, 2018 | 15.7 | 33.3 |
Distributions to common unitholders and to general partner | (155) | (153) |
Other financing activities | 2.8 | (2.6) |
Net cash used in financing activities | (116.5) | (27.4) |
Net decrease in cash and cash equivalents | (99.4) | (14) |
Cash and cash equivalents, beginning of period | 99.5 | 30.8 |
Cash and cash equivalents, end of period | 0.1 | 16.8 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 13.9 | 14.8 |
Non-cash investing activities: | ||
Non-cash accrual of property and equipment | 9.5 | (0.3) |
Series B Preferred Unitholders | ||
Cash flows from financing activities: | ||
Distributions to Series B Preferred Units | $ (16.5) | $ (16) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Proceeds from affiliates | $ 33.3 |
Affiliates | |
Proceeds from affiliates | $ 10.6 |
General
General | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | (1) General In this report, the term “Partnership,” as well as the terms “ENLK,” “our,” “we,” “us,” and “its” are sometimes used as abbreviated references to EnLink Midstream Partners, LP itself or EnLink Midstream Partners, LP together with its consolidated subsidiaries, including the Operating Partnership and EOGP. Please read the notes to the consolidated financial statements in conjunction with the Definitions page set forth in this report prior to Part I—Financial Information. (a) Organization of Business ENLK is a Delaware limited partnership formed in 2002. Our business activities are conducted through the Operating Partnership and the subsidiaries of the Operating Partnership. EnLink Midstream GP, LLC, a Delaware limited liability company, is our general partner. Our general partner manages our operations and activities. Our general partner is a direct, wholly-owned subsidiary of ENLC. ENLC’s units are traded on the New York Stock Exchange under the symbol “ENLC.” ENLC’s managing member is a wholly-owned subsidiary of GIP. Transfer of EOGP Interest On January 31, 2019, ENLC transferred its 16.1% limited partner interest in EOGP to the Operating Partnership in exchange for 55,827,221 ENLK common units, resulting in the Operating Partnership owning 100% of the limited partner interests in EOGP. This acquisition has been accounted for as an acquisition under common control under ASC 805, Business Combinations , resulting in the retrospective adjustment of our prior results. The “ Adjustment for acquisition of EOGP (Note 1) ” presented in the consolidated statements of changes in partners’ equity represents the adjustment due to the recast to offset distributions paid to ENLC and contributions received from ENLC for its related ownership in EOGP. Simplification of the Corporate Structure On October 21, 2018, ENLK, ENLC, the general partner of ENLK, the managing member of ENLC, and NOLA Merger Sub entered into the Merger Agreement pursuant to which, on January 25, 2019, NOLA Merger Sub merged with and into ENLK, with ENLK continuing as the surviving entity and as a subsidiary of ENLC. As a result of the Merger: • Each issued and outstanding ENLK common unit (except for ENLK common units held by ENLC and its subsidiaries) was converted into 1.15 ENLC common units, which resulted in ENLC owning all of the remaining outstanding ENLK common units. • Our general partner’s incentive distribution rights in ENLK were eliminated. • The Series B Preferred Units continue to be issued and outstanding, except that certain terms of the Series B Preferred Units have been modified pursuant to an amended partnership agreement of ENLK. See “ Note 7—Partners' Capital ” for additional information regarding the modified terms of the Series B Preferred Units. • ENLC issued to Enfield, the current holder of the Series B Preferred Units, for no additional consideration, ENLC Class C Common Units equal to the number of Series B Preferred Units held by Enfield immediately prior to the effective time of the Merger, in order to provide Enfield with certain voting rights with respect to ENLC. For each additional Series B Preferred Unit issued by ENLK in quarterly in-kind distributions, ENLC will issue an additional ENLC Class C Common Unit to the applicable holder of such Series B Preferred Unit. In addition, for each Series B Preferred Unit that is exchanged into an ENLC common unit, an ENLC Class C Common Unit will be canceled. • The Series C Preferred Units and all of ENLK’s then-existing senior notes continue to be issued and outstanding following the Merger. • Each unit-based award issued and outstanding immediately prior to the effective time of the Merger under the GP Plan and the 2014 Plan has been converted into an award with respect to ENLC common units with substantially similar terms as were in effect immediately prior to the effective time. • Each unit-based award with performance-based vesting conditions issued and outstanding immediately prior to the effective time of the Merger under the GP Plan has been modified such that the performance metric for such award relates (on a weighted average basis) to (i) the combined performance of ENLC and ENLK for periods preceding the effective time of the Merger and (ii) the performance of ENLC for periods on and after the effective time of the Merger. • ENLC assumed the outstanding debt under the Term Loan and ENLK became a guarantor thereof. See “ Note 6—Long-Term Debt ” for additional information regarding the Term Loan. • We refinanced our existing revolving credit facilities at ENLK and ENLC. In connection with the Merger, ENLC entered into the Consolidated Credit Facility, with respect to which ENLK is a guarantor. See “ Note 6—Long-Term Debt ” for additional information regarding the Consolidated Credit Facility. (b) Nature of Business We primarily focus on providing midstream energy services, including: • gathering, compressing, treating, processing, transporting, storing, and selling natural gas; • fractionating, transporting, storing, and selling NGLs; and • gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and condensate, in addition to brine disposal services. Our natural gas business includes connecting the wells of producers in our market areas to our gathering systems. Our gathering systems consist of networks of pipelines that collect natural gas from points at or near producing wells and transport it to our processing plants or to larger pipelines for further transmission. We operate processing plants that remove NGLs from the natural gas stream that is transported to the processing plants by our own gathering systems or by third-party pipelines. In conjunction with our gathering and processing business, we may purchase natural gas and NGLs from producers and other supply sources and sell that natural gas or NGLs to utilities, industrial consumers, marketers, and pipelines. Our transmission pipelines receive natural gas from our gathering systems and from third-party gathering and transmission systems and deliver natural gas to industrial end-users, utilities, and other pipelines. Our fractionators separate NGLs into separate purity products, including ethane, propane, iso-butane, normal butane, and natural gasoline. Our fractionators receive NGLs primarily through our transmission lines that transport NGLs from east Texas and from our south Louisiana processing plants. Our fractionators also have the capability to receive NGLs by truck or rail terminals. We also have agreements pursuant to which third parties transport NGLs from our west Texas and central Oklahoma operations to our NGL transmission lines that then transport the NGLs to our fractionators. In addition, we have NGL storage capacity to provide storage for customers. Our crude oil and condensate business includes the gathering and transmission of crude oil and condensate via pipelines, barges, rail, and trucks, in addition to condensate stabilization and brine disposal. We also purchase crude oil and condensate from producers and other supply sources and sell that crude oil and condensate through our terminal facilities to various markets. Across our businesses, we primarily earn our fees through various fee-based contractual arrangements, which include stated fee-only contract arrangements or arrangements with fee-based components where we purchase and resell commodities in connection with providing the related service and earn a net margin as our fee. We earn our net margin under our purchase and resell contract arrangements primarily as a result of stated service-related fees that are deducted from the price of the commodities purchased. While our transactions vary in form, the essential element of most of our transactions is the use of our assets to transport a product or provide a processed product to an end-user or marketer at the tailgate of the plant, pipeline, or barge, truck, or rail terminal. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) Significant Accounting Policies (a) Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with the instructions to Form 10-Q, are unaudited, and do not include all the information and disclosures required by GAAP for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of results of operations for a full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 . All significant intercompany balances and transactions have been eliminated in consolidation. (b) Revenue Recognition Minimum Volume Commitments and Firm Transportation Contracts Certain of our gathering and processing agreements provide for quarterly or annual MVCs. Under these agreements, our customers or suppliers agree to ship and/or process a minimum volume of product on our systems over an agreed time period. If a customer or supplier under such an agreement fails to meet its MVC for a specified period, the customer is obligated to pay a contractually-determined fee based upon the shortfall between actual product volumes and the MVC for that period. Some of these agreements also contain make-up right provisions that allow a customer or supplier to utilize gathering or processing fees in excess of the MVC in subsequent periods to offset shortfall amounts in previous periods. We record revenue under MVC contracts during periods of shortfall when it is known that the customer cannot, or will not, make up the deficiency in subsequent periods. Deficiency fee revenue is included in midstream services revenue. For our firm transportation contracts, we transport commodities owned by others for a stated monthly fee for a specified monthly quantity with an additional fee based on actual volumes. We include transportation fees from firm transportation contracts in our midstream services revenue. The following table summarizes the contractually committed fees that we expect to recognize in our consolidated statements of operations, in either revenue or reductions to cost of sales, from MVC and firm transportation contractual provisions. All amounts in the table below are determined using the contractually-stated MVC or firm transportation volumes specified for each period multiplied by the relevant deficiency or reservation fee. Actual amounts could differ due to the timing of revenue recognition or reductions to cost of sales resulting from make-up right provisions included in our agreements, as well as due to nonpayment or nonperformance by our customers. These fees do not represent the shortfall amounts we expect to collect under our MVC contracts, as we generally do not expect volume shortfalls to equal the full amount of the contractual MVCs during these periods. For example, for the three months ended March 31, 2019 , we had contractual commitments of $38.5 million under our MVC contracts and recorded $3.8 million of revenue due to volume shortfalls. MVC and Firm Transportation Commitments (1) 2019 (remaining) $ 196.7 2020 252.7 2021 104.7 2022 94.3 2023 91.6 Thereafter 279.7 Total $ 1,019.7 ____________________________ (1) Amounts do not represent expected shortfall under these commitments. (c) Accounting Standards to be Adopted in Future Periods On August 29, 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which amends ASC 350-40, Internal-Use Software (“ASC 350-40”) to address a customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. ASU 2018-15 aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Specifically, the ASU amends ASC 350-40 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a cloud computing arrangement that is considered a service contract. To the extent costs incurred in a cloud computing arrangement are capitalizable, the corresponding amortization will be included in “Operating expenses” or “General and administrative” in the consolidated statement of operations, rather than “Depreciation and amortization.” We are currently evaluating the impact of ASU 2018-15 on our consolidated financial statements and will adopt ASU 2018-15 effective January 1, 2020. (d) Adopted Accounting Standards Effective January 1, 2019, we adopted ASC 842, Leases , using the modified retrospective approach whereby we recognized leases on our consolidated balance sheet by recording a right-of-use asset and lease liability. We applied certain practical expedients that were allowed in the adoption of ASC 842, including not reassessing existing contracts for lease arrangements, not reassessing existing lease classification, not recording a right-of-use asset or lease liability for leases of twelve months or less, and not separating lease and non-lease components of a lease arrangement. In connection with the adoption of ASC 842 in January 2019, we recorded a lease liability of $97.6 million , a right-of-use asset of $75.3 million , and a reduction of $22.6 million in other liabilities previously recorded related to lease incentives. For additional information about our adoption of ASC 842, refer to “ Note 5—Leases .” |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | (3) Intangible Assets Intangible Assets Intangible assets associated with customer relationships are amortized on a straight-line basis over the expected period of benefits of the customer relationships, which range from 5 to 20 years . The following table represents our change in carrying value of intangible assets (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Three Months Ended March 31, 2019 Customer relationships, beginning of period $ 1,795.8 $ (422.2 ) $ 1,373.6 Amortization expense — (30.9 ) (30.9 ) Customer relationships, end of period $ 1,795.8 $ (453.1 ) $ 1,342.7 The weighted average amortization period is 15.0 years . Amortization expense was $30.9 million and $30.8 million for the three months ended March 31, 2019 and 2018 , respectively. The following table summarizes our estimated aggregate amortization expense for the next five years and thereafter (in millions): 2019 (remaining) $ 92.8 2020 123.7 2021 123.7 2022 123.7 2023 123.6 Thereafter 755.2 Total $ 1,342.7 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (4) Related Party Transactions (a) Transactions with ENLC Simplification of the Corporate Structure . On October 21, 2018, ENLK, ENLC, the general partner of ENLK, the managing member of ENLC , and NOLA Merger Sub entered into the Merger Agreement pursuant to which, on January 25, 2019, NOLA Merger Sub merged with and into ENLK, with ENLK continuing as the surviving entity and as a subsidiary of ENLC. See “ Note 1—General ” for more information on this transaction. Transfer of EOGP Interest . On January 31, 2019, ENLC transferred its 16.1% limited partner interest in EOGP to the Operating Partnership in exchange for 55,827,221 ENLK common units, resulting in the Operating Partnership owning 100% of the limited partner interests in EOGP. Intercompany Debt. Intercompany debt includes borrowings under the Term Loan and the Consolidated Credit Facility to fund the operations and growth capital expenditures of ENLK through an intercompany arrangement with ENLC. Interest charged to ENLK for borrowings made through the intercompany arrangement will be substantially the same as interest charged to ENLC on borrowings under the Term Loan and the Consolidated Credit Facility. As of March 31, 2019 , $898.4 million of intercompany debt is included in “Long-term debt” in the consolidated balance sheet related to these borrowings. (b) Transactions with Devon On July 18, 2018, subsidiaries of Devon sold all of their equity interests in ENLK, ENLC, and the managing member of ENLC to GIP for aggregate consideration of $3.125 billion . Accordingly, Devon is no longer an affiliate of ENLK or ENLC. The sale did not affect our commercial arrangements with Devon, except that Devon agreed to extend through 2029 certain existing fixed-fee gathering and processing contracts related to the Bridgeport plant in north Texas and the Cana plant in Oklahoma. Prior to July 18, 2018, revenues from transactions with Devon are included in “Product sales—related parties” or “Midstream services—related parties” in the consolidated statement of operations. Revenues from transactions with Devon after July 18, 2018 are included in “Product sales” or “Midstream services” in the consolidated statement of operations. For the three months ended March 31, 2018 , Devon accounted for 9.8% of our revenues. (c) Transactions with Cedar Cove JV For the three months ended March 31, 2019 and 2018 , we recorded cost of sales of $8.1 million and $13.0 million , respectively, related to our purchase of residue gas and NGLs from the Cedar Cove JV subsequent to processing at our central Oklahoma processing facilities. We had accounts receivable balances related to transactions with the Cedar Cove JV of $0.4 million and $0.7 million at March 31, 2019 and December 31, 2018 , respectively. Additionally, we had accounts payable balances related to transactions with the Cedar Cove JV of $2.6 million and $4.3 million at March 31, 2019 and December 31, 2018 , respectively. Management believes the foregoing transactions with related parties were executed on terms that are fair and reasonable to us. The amounts related to related party transactions are specified in the accompanying consolidated financial statements. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | (5) Leases Effective with the adoption of ASC 842 in January 2019, we evaluate new contracts at inception to determine if the contract conveys the right to control the use of an identified asset for a period of time in exchange for periodic payments. A lease exists if we obtain substantially all of the economic benefits of an asset, and we have the right to direct the use of that asset. When a lease exists, we record a right-of-use asset that represents our right to use the asset over the lease term and a lease liability that represents our obligation to make payments over the lease term. Lease liabilities are recorded at the sum of future lease payments discounted by the collateralized rate we could obtain to lease a similar asset over a similar period, and right-of-use assets are recorded equal to the corresponding lease liability, plus any prepaid or direct costs incurred to enter the lease, less the cost of any incentives received from the lessor. The majority of our leases are for the following types of assets: • Office space- Our primary offices are in Dallas, Houston, and Midland, with smaller offices in other locations near our assets. Our office leases are long-term in nature and represent $64.1 million of our lease liability and $42.8 million of our right-of-use asset as of March 31, 2019 . These office leases typically include variable lease costs related to utility expenses, which are determined based on our pro-rata share of the building expenses each month and expensed as incurred. • Compression and other field equipment- We pay third parties to provide compressors or other field equipment for our assets. Under these agreements, a third party installs and operates compressor units based on specifications set by us to meet our compression needs at specific locations. While the third party determines which compressors to install and operates and maintains the units, we have the right to control the use of the compressors and are the sole economic beneficiary of the identified assets. These agreements are typically for an initial term of one to three years but will automatically renew from month to month until canceled by us or the lessor. Compression and other field equipment rentals represent $19.2 million of our lease liability and $23.0 million of our right-of-use asset as of March 31, 2019 . Under certain agreements, we may incur variable lease costs related to incidental services provided by the equipment lessor, which are expensed as incurred. • Office equipment- We rent office equipment for a monthly fee. These leases are typically for several years and represent $0.8 million of our lease liability and $0.8 million of our right-of-use asset as of March 31, 2019 . • Land and land easements- We make periodic payments to lease land or to have access to our assets. Land leases and easements are typically long-term to match the expected useful life of the corresponding asset and represent $14.9 million of our lease liability and $13.2 million of our right-of-use asset as of March 31, 2019 . Lease balances are recorded on the consolidated balance sheets as follows (in millions): March 31, 2019 Finance leases: Property and equipment $ 5.2 Accumulated depreciation (0.7 ) Property and equipment, net of accumulated depreciation $ 4.5 Other current liabilities $ 0.8 Operating leases: Other assets, net $ 75.3 Other current liabilities $ 17.3 Other long-term liabilities $ 80.9 Certain of our lease agreements have options to extend the lease for a certain period after the expiration of the initial term. We recognize the cost of a lease over the expected total term of the lease, including optional renewal periods that we can reasonably expect to exercise. We do not have material obligations whereby we guarantee a residual value on assets we lease, nor do our lease agreements impose restrictions or covenants that could affect our ability to make distributions. Lease expense is recognized on the consolidated statements of operations as “Operating expenses” and “General and administrative” depending on the nature of the leased asset. The components of total lease expense are as follows (in millions): Three Months Ended March 31, 2019 Finance lease expense: Amortization of right-of-use asset $ 0.7 Interest on lease liability — Operating lease expense: Long-term operating lease expense 6.3 Short-term lease expense 6.9 Variable lease expense 1.6 Total lease expense $ 15.5 Other information about our leases are as follows (dollar amounts in millions, lease terms in years): Three Months Ended March 31, 2019 Supplemental cash flow information: Cash payments for finance leases included in cash flows from financing activities $ 0.4 Cash payments for operating leases included in cash flows from operating activities $ 7.0 Right-of-use assets obtained in exchange for operating lease liabilities $ 80.6 Other lease information Weighted-average remaining lease term - Finance leases 0.5 years Weighted-average remaining lease term - Operating leases 11.6 years Weighted-average discount rate - Finance leases 9.3 % Weighted-average discount rate - Operating leases 5.2 % The following table summarizes the maturity of our lease liability as of March 31, 2019 (in millions): Total 2019 (remaining) 2020 2021 2022 2023 Thereafter Undiscounted finance lease liability $ 0.8 $ 0.8 $ — $ — $ — $ — $ — Reduction due to present value — — — — — — — Finance lease liability 0.8 0.8 — — — — — Undiscounted operating lease liability 139.2 16.5 16.0 12.9 9.1 8.9 75.8 Reduction due to present value (41.0 ) (3.6 ) (4.2 ) (3.7 ) (3.4 ) (3.0 ) (23.1 ) Operating lease liability 98.2 12.9 11.8 9.2 5.7 5.9 52.7 Total lease liability $ 99.0 $ 13.7 $ 11.8 $ 9.2 $ 5.7 $ 5.9 $ 52.7 |
Leases | (5) Leases Effective with the adoption of ASC 842 in January 2019, we evaluate new contracts at inception to determine if the contract conveys the right to control the use of an identified asset for a period of time in exchange for periodic payments. A lease exists if we obtain substantially all of the economic benefits of an asset, and we have the right to direct the use of that asset. When a lease exists, we record a right-of-use asset that represents our right to use the asset over the lease term and a lease liability that represents our obligation to make payments over the lease term. Lease liabilities are recorded at the sum of future lease payments discounted by the collateralized rate we could obtain to lease a similar asset over a similar period, and right-of-use assets are recorded equal to the corresponding lease liability, plus any prepaid or direct costs incurred to enter the lease, less the cost of any incentives received from the lessor. The majority of our leases are for the following types of assets: • Office space- Our primary offices are in Dallas, Houston, and Midland, with smaller offices in other locations near our assets. Our office leases are long-term in nature and represent $64.1 million of our lease liability and $42.8 million of our right-of-use asset as of March 31, 2019 . These office leases typically include variable lease costs related to utility expenses, which are determined based on our pro-rata share of the building expenses each month and expensed as incurred. • Compression and other field equipment- We pay third parties to provide compressors or other field equipment for our assets. Under these agreements, a third party installs and operates compressor units based on specifications set by us to meet our compression needs at specific locations. While the third party determines which compressors to install and operates and maintains the units, we have the right to control the use of the compressors and are the sole economic beneficiary of the identified assets. These agreements are typically for an initial term of one to three years but will automatically renew from month to month until canceled by us or the lessor. Compression and other field equipment rentals represent $19.2 million of our lease liability and $23.0 million of our right-of-use asset as of March 31, 2019 . Under certain agreements, we may incur variable lease costs related to incidental services provided by the equipment lessor, which are expensed as incurred. • Office equipment- We rent office equipment for a monthly fee. These leases are typically for several years and represent $0.8 million of our lease liability and $0.8 million of our right-of-use asset as of March 31, 2019 . • Land and land easements- We make periodic payments to lease land or to have access to our assets. Land leases and easements are typically long-term to match the expected useful life of the corresponding asset and represent $14.9 million of our lease liability and $13.2 million of our right-of-use asset as of March 31, 2019 . Lease balances are recorded on the consolidated balance sheets as follows (in millions): March 31, 2019 Finance leases: Property and equipment $ 5.2 Accumulated depreciation (0.7 ) Property and equipment, net of accumulated depreciation $ 4.5 Other current liabilities $ 0.8 Operating leases: Other assets, net $ 75.3 Other current liabilities $ 17.3 Other long-term liabilities $ 80.9 Certain of our lease agreements have options to extend the lease for a certain period after the expiration of the initial term. We recognize the cost of a lease over the expected total term of the lease, including optional renewal periods that we can reasonably expect to exercise. We do not have material obligations whereby we guarantee a residual value on assets we lease, nor do our lease agreements impose restrictions or covenants that could affect our ability to make distributions. Lease expense is recognized on the consolidated statements of operations as “Operating expenses” and “General and administrative” depending on the nature of the leased asset. The components of total lease expense are as follows (in millions): Three Months Ended March 31, 2019 Finance lease expense: Amortization of right-of-use asset $ 0.7 Interest on lease liability — Operating lease expense: Long-term operating lease expense 6.3 Short-term lease expense 6.9 Variable lease expense 1.6 Total lease expense $ 15.5 Other information about our leases are as follows (dollar amounts in millions, lease terms in years): Three Months Ended March 31, 2019 Supplemental cash flow information: Cash payments for finance leases included in cash flows from financing activities $ 0.4 Cash payments for operating leases included in cash flows from operating activities $ 7.0 Right-of-use assets obtained in exchange for operating lease liabilities $ 80.6 Other lease information Weighted-average remaining lease term - Finance leases 0.5 years Weighted-average remaining lease term - Operating leases 11.6 years Weighted-average discount rate - Finance leases 9.3 % Weighted-average discount rate - Operating leases 5.2 % The following table summarizes the maturity of our lease liability as of March 31, 2019 (in millions): Total 2019 (remaining) 2020 2021 2022 2023 Thereafter Undiscounted finance lease liability $ 0.8 $ 0.8 $ — $ — $ — $ — $ — Reduction due to present value — — — — — — — Finance lease liability 0.8 0.8 — — — — — Undiscounted operating lease liability 139.2 16.5 16.0 12.9 9.1 8.9 75.8 Reduction due to present value (41.0 ) (3.6 ) (4.2 ) (3.7 ) (3.4 ) (3.0 ) (23.1 ) Operating lease liability 98.2 12.9 11.8 9.2 5.7 5.9 52.7 Total lease liability $ 99.0 $ 13.7 $ 11.8 $ 9.2 $ 5.7 $ 5.9 $ 52.7 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (6) Long-Term Debt As of March 31, 2019 and December 31, 2018 , long-term debt consisted of the following (in millions): March 31, 2019 December 31, 2018 Outstanding Principal Premium (Discount) Long-Term Debt Outstanding Principal Premium (Discount) Long-Term Debt Intercompany debt (1) $ 898.4 $ — $ 898.4 $ — $ — $ — Term Loan due 2021 (2) — — — 850.0 — 850.0 2.70% Senior unsecured notes due 2019 (3) 400.0 — 400.0 400.0 — 400.0 4.40% Senior unsecured notes due 2024 550.0 1.7 551.7 550.0 1.8 551.8 4.15% Senior unsecured notes due 2025 750.0 (0.8 ) 749.2 750.0 (0.9 ) 749.1 4.85% Senior unsecured notes due 2026 500.0 (0.5 ) 499.5 500.0 (0.5 ) 499.5 5.60% Senior unsecured notes due 2044 350.0 (0.2 ) 349.8 350.0 (0.2 ) 349.8 5.05% Senior unsecured notes due 2045 450.0 (6.1 ) 443.9 450.0 (6.2 ) 443.8 5.45% Senior unsecured notes due 2047 500.0 (0.1 ) 499.9 500.0 (0.1 ) 499.9 Debt classified as long-term, including current maturities of long-term debt $ 4,398.4 $ (6.0 ) 4,392.4 $ 4,350.0 $ (6.1 ) 4,343.9 Debt issuance cost (4) (28.2 ) (24.3 ) Less: Current maturities of long-term debt (3) — (399.8 ) Long-term debt, net of unamortized issuance cost $ 4,364.2 $ 3,919.8 ____________________________ (1) Intercompany debt includes borrowings under the Term Loan and the Consolidated Credit Facility to fund the operations and growth capital expenditures of ENLK through an intercompany arrangement with ENLC. Interest charged to ENLK for borrowings made through the intercompany arrangement will be substantially the same as interest charged to ENLC on borrowings under the Term Loan and the Consolidated Credit Facility. (2) In December 2018, ENLK entered into an $850.0 million , three-year unsecured Term Loan. Borrowings under the Term Loan bear interest based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was 3.9% at December 31, 2018 . In connection with the closing of the Merger, the Term Loan was assumed by ENLC, and we became a guarantor of the Term Loan. (3) The 2.70% senior unsecured notes matured on April 1, 2019 and were refinanced through borrowings on the intercompany debt. Therefore, the outstanding principal balance, net of discount and debt issuance costs, is classified as “Long-term debt” on the consolidated balance sheet as of March 31, 2019 and “Current maturities of long-term debt” as of December 31, 2018 . (4) Net of amortization of $10.9 million and $15.3 million at March 31, 2019 and December 31, 2018 , respectively. Consolidated Credit Facility On December 11, 2018, ENLC entered into the Consolidated Credit Facility, which permits ENLC to borrow up to $1.75 billion on a revolving credit basis and includes a $500.0 million letter of credit subfacility. The Consolidated Credit Facility became available for borrowings and letters of credit upon closing of the Merger. In addition, ENLK became a guarantor under the Consolidated Credit Facility upon the closing of the Merger. In the event that ENLC defaults on the Consolidated Credit Facility, ENLK will be liable for the entire outstanding balance ( $160.0 million as of March 31, 2019 ), and 105% of the outstanding letters of credit under the Consolidated Credit Facility. The obligations under the Consolidated Credit Facility are unsecured. The Consolidated Credit Facility includes procedures for additional financial institutions to become lenders, or for any existing lender to increase its revolving commitment thereunder, subject to an aggregate maximum of $2.25 billion for all commitments under the Consolidated Credit Facility. The Consolidated Credit Facility will mature on January 25, 2024, unless ENLC requests, and the requisite lenders agree, to extend it pursuant to its terms. The Consolidated Credit Facility contains certain financial, operational, and legal covenants. The financial covenants are tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. The financial covenants include (i) maintaining a ratio of consolidated EBITDA (as defined in the Consolidated Credit Facility, which term includes projected EBITDA from certain capital expansion projects) to consolidated interest charges of no less than 2.5 to 1.0 at all times prior to the occurrence of an investment grade event (as defined in the Consolidated Credit Facility) and (ii) maintaining a ratio of consolidated indebtedness to consolidated EBITDA of no more than 5.0 to 1.0 . If ENLC consummates one or more acquisitions in which the aggregate purchase price is $50.0 million or more, ENLC can elect to increase the maximum allowed ratio of consolidated indebtedness to consolidated EBITDA to 5.5 to 1.0 for the quarter in which the acquisition occurs and the three subsequent quarters. Borrowings under the Consolidated Credit Facility bear interest at ENLC’s option at the Eurodollar Rate (the LIBOR Rate) plus an applicable margin (ranging from 1.125% to 2.00% ) or the Base Rate (the highest of the Federal Funds Rate plus 0.50% , the 30-day Eurodollar Rate plus 1.0% or the administrative agent’s prime rate) plus an applicable margin (ranging from 0.125% to 1.00% ). The applicable margins vary depending on ENLC’s debt rating. Upon breach by ENLC of certain covenants governing the Consolidated Credit Facility, amounts outstanding under the Consolidated Credit Facility, if any, may become due and payable immediately. At March 31, 2019 , ENLC was in compliance with and expects to be in compliance with the covenants of the Consolidated Credit Facility for at least the next twelve months. Accordingly, we do not expect to make payments related to our guarantee of the $160.0 million outstanding on the Consolidated Credit Facility. Term Loan On December 11, 2018, ENLK entered into the Term Loan with Bank of America, N.A., as Administrative Agent, Bank of Montreal and Royal Bank of Canada, as Co-Syndication Agents, Citibank, N.A. and Wells Fargo Bank, National Association, as Co-Documentation Agents, and the lenders party thereto. On December 11, 2018, ENLK borrowed $850.0 million under the Term Loan and used the net proceeds to repay obligations outstanding under the ENLK Credit Facility. Upon the closing of the Merger, ENLC assumed ENLK’s obligations under the Term Loan, and ENLK became a guarantor of the Term Loan. In the event that ENLC defaults on the Term Loan, the outstanding balance immediately becomes due, and ENLK will be liable for any amount owed on the Term Loan not paid by ENLC. The outstanding balance of the Term Loan was $850.0 million as of March 31, 2019 . The obligations under the Term Loan are unsecured. The Term Loan will mature on December 10, 2021. The Term Loan contains certain financial, operational, and legal covenants. The financial covenants are tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. The financial covenants include (i) maintaining a ratio of consolidated EBITDA (as defined in the Term Loan, which term includes projected EBITDA from certain capital expansion projects) to consolidated interest charges of no less than 2.50 to 1.0 at all times prior to the occurrence of an investment grade event (as defined in the Term Loan) and (ii) maintaining a ratio of consolidated indebtedness to consolidated EBITDA of no more than 5.0 to 1.0 . If ENLC consummates one or more acquisitions in which the aggregate purchase price is $50.0 million or more, ENLC can elect to increase the maximum allowed ratio of consolidated indebtedness to consolidated EBITDA to 5.5 to 1.0 for the quarter in which the acquisition occurs and the three subsequent quarters. Borrowings under the Term Loan bear interest at ENLC’s option at the Eurodollar Rate (the LIBOR Rate) plus an applicable margin (ranging from 1.0% to 1.75% ) or the Base Rate (the highest of the Federal Funds Rate plus 0.5% , the 30-day Eurodollar Rate plus 1.0% or the administrative agent’s prime rate) plus an applicable margin (ranging from 0.0% to 0.75% ). The applicable margins vary depending on ENLC’s debt rating. Upon breach by ENLC of certain covenants included in the Term Loan, amounts outstanding under the Term Loan may become due and payable immediately. At March 31, 2019 , ENLC was in compliance with and expects to be in compliance with the covenants of the Term Loan for at least the next twelve months. Accordingly, we do not expect to make payments related to our guarantee of the $850.0 million outstanding on the Term Loan. |
Partners' Capital
Partners' Capital | 3 Months Ended |
Mar. 31, 2019 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital | (7) Partners' Capital (a) Series B Preferred Units Prior to the closing of the Merger, Series B Preferred Unit distributions were payable quarterly in cash at an amount equal to $0.28125 per Series B Preferred Unit (the “Cash Distribution Component”) plus an in-kind distribution equal to the greater of (A) 0.0025 Series B Preferred Units per Series B Preferred Unit and (B) an amount equal to (i) the excess, if any, of the distribution that would have been payable had the Series B Preferred Units converted into ENLK common units over the Cash Distribution Component, divided by (ii) the issue price of $15.00 (the “Issue Price”). Following the closing of the Merger, and beginning with the quarter ended March 31, 2019, the holder of the Series B Preferred Units will be entitled to quarterly cash distributions and distributions in-kind of additional Series B Preferred Units as described below. The quarterly in-kind distribution (the “Series B PIK Distribution”) will equal the greater of (A) 0.0025 Series B Preferred Units per Series B Preferred Unit and (B) the number of Series B Preferred Units equal to the quotient of (x) the excess (if any) of (1) the distribution that would have been payable by ENLC had the Series B Preferred Units been exchanged for ENLC common units but applying a one-to-one exchange ratio (subject to certain adjustments) instead of the exchange ratio of 1.15 ENLC common units for each Series B Preferred Unit, subject to certain adjustments (the “Series B Exchange Ratio”), over (2) the Cash Distribution Component, divided by (y) the Issue Price. The quarterly cash distribution will consist of the Cash Distribution Component plus an amount in cash that will be determined based on a comparison of the value (applying the Issue Price) of (i) the Series B PIK Distribution and (ii) the Series B Preferred Units that would have been distributed in the Series B PIK Distribution if such calculation applied the Series B Exchange Ratio instead of the one-to-one ratio (subject to certain adjustments). Income is allocated to the Series B Preferred Units in an amount equal to the quarterly distribution with respect to the period earned. For the three months ended March 31, 2019 and 2018 , $18.6 million and $21.9 million of income, respectively, was allocated to the Series B Preferred Units. A summary of the distribution activity relating to the Series B Preferred Units during the three months ended March 31, 2019 and 2018 is provided below: Declaration period Distribution paid as additional Series B Preferred Units Cash Distribution (in millions) Date paid/payable 2019 Fourth Quarter of 2018 425,785 $ 16.5 February 13, 2019 First Quarter of 2019 147,887 $ 16.7 May 14, 2019 2018 Fourth Quarter of 2017 413,658 $ 16.0 February 13, 2018 First Quarter of 2018 416,657 $ 16.2 May 14, 2018 (b) Series C Preferred Units Distributions on the Series C Preferred Units accrue and are cumulative from the date of original issue and payable semi-annually in arrears on the 15 th day of June and December of each year through and including December 15, 2022 and, thereafter, quarterly in arrears on the 15 th day of March, June, September, and December of each year, in each case, if and when declared by our general partner out of legally available funds for such purpose. The initial distribution rate for the Series C Preferred Units from and including the date of original issue to, but not including, December 15, 2022 is 6.0% per annum. On and after December 15, 2022, distributions on the Series C Preferred Units will accumulate for each distribution period at a percentage of the $1,000 liquidation preference per unit equal to an annual floating rate of the three-month LIBOR plus a spread of 4.11% . Income is allocated to the Series C Preferred Units in an amount equal to the earned distributions for the respective reporting period. For the three months ended March 31, 2019 and 2018 , $6.0 million and $6.0 million of income was allocated to the Series C Preferred Units, respectively. Following the Merger, the Series C Preferred Units remained issued and outstanding with the terms set forth above. (c) Common Unit Distributions A summary of the distribution activity relating to the common units for periods prior to the Merger is provided below: Declaration period Distribution/unit Date paid/payable 2019 Fourth Quarter of 2018 $ 0.39 February 13, 2019 2018 Fourth Quarter of 2017 $ 0.39 February 13, 2018 First Quarter of 2018 $ 0.39 May 14, 2018 (d) Allocation of ENLK Income Prior to the closing of the Merger and for the three months ended March 31, 2018 , net income was allocated to our general partner in an amount equal to its incentive distribution rights. Prior to the closing of the Merger, ENLK was required to pay the general partner incentive distributions in the amount of 13.0% of ENLK distributions in excess of $0.25 per unit, 23.0% of ENLK distributions in excess of $0.3125 per unit, and 48.0% of ENLK distributions in excess of $0.375 per unit. The general partner was not entitled to incentive distributions with respect to (i) distributions on the Series B Preferred Units until such units converted into common units or (ii) the Series C Preferred Units. At the closing of the Merger, our general partner’s incentive distribution rights in ENLK were eliminated. For the three months ended March 31, 2018 , our general partner’s share of net income consisted of incentive distribution rights to the extent earned, a deduction for unit-based compensation attributable to ENLC’s restricted units, and the percentage interest of our net income adjusted for ENLC’s unit-based compensation specifically allocated to our general partner. The net income allocated to the general partner is as follows (in millions): Three Months Ended 2019 2018 Income allocation for incentive distributions $ — $ 14.8 Unit-based compensation attributable to ENLC’s restricted and performance units (12.1 ) (4.4 ) General partner share of net income 0.4 0.2 General partner interest in EOGP acquisition 2.4 4.2 General partner interest in net income (loss) $ (9.3 ) $ 14.8 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliates | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliates | (8) Investment in Unconsolidated Affiliates As of March 31, 2019 , our unconsolidated investments consisted of a 38.75% ownership in GCF and an approximate 30% ownership in the Cedar Cove JV. The following table shows the activity related to our investment in unconsolidated affiliates for the periods indicated (in millions): Three Months Ended 2019 2018 GCF Distributions $ 2.2 $ 5.7 Equity in income $ 5.7 $ 4.6 Cedar Cove JV Distributions $ 0.3 $ 0.3 Equity in loss $ (0.4 ) $ (1.6 ) Total Distributions $ 2.5 $ 6.0 Equity in income $ 5.3 $ 3.0 The following table shows the balances related to our investment in unconsolidated affiliates as of March 31, 2019 and December 31, 2018 (in millions): March 31, 2019 December 31, 2018 GCF $ 45.4 $ 41.9 Cedar Cove JV 37.5 38.2 Total investment in unconsolidated affiliates $ 82.9 $ 80.1 |
Employee Incentive Plans
Employee Incentive Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Incentive Plans | (9) Employee Incentive Plans (a) Long-Term Incentive Plans Prior to the Merger, ENLC and ENLK each had similar unit-based compensation payment plans for officers and employees. ENLC grants unit-based awards under the 2014 Plan, and ENLK granted unit-based awards under the GP Plan. As of the closing of the Merger, (i) ENLC assumed all obligations in respect of the GP Plan and the outstanding awards granted thereunder (the “Legacy ENLK Awards”) and (ii) the Legacy ENLK Awards converted into ENLC unit-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. In addition, as of the closing of the Merger, the performance metric of each Legacy ENLK Award and each then outstanding award under the 2014 Plan with performance-based vesting conditions was modified as discussed in (c) and (e) below. Following the consummation of the Merger, no additional awards will be granted under the GP Plan. We account for unit-based compensation in accordance with ASC 718, Stock Compensation (“ASC 718”), which requires that compensation related to all unit-based awards be recognized in the consolidated financial statements. Unit-based compensation cost is valued at fair value at the date of grant, and that grant date fair value is recognized as expense over each award’s requisite service period with a corresponding increase to equity or liability based on the terms of each award and the appropriate accounting treatment under ASC 718. Unit-based compensation associated with ENLC’s unit-based compensation plan awarded to ENLC’s officers and employees is recorded by us since ENLC has no substantial or managed operating activities other than its interests in us. Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions): Three Months Ended March 31, 2019 2018 Cost of unit-based compensation charged to operating expense $ 0.3 $ 2.0 Cost of unit-based compensation charged to general and administrative expense 10.6 3.1 Total unit-based compensation expense $ 10.9 $ 5.1 (b) EnLink Midstream Partners, LP Restricted Incentive Units ENLK restricted incentive units are valued at their fair value at the date of grant, which is equal to the market value of ENLK common units on such date. A summary of the restricted incentive unit activity for the three months ended March 31, 2019 is provided below: Three Months Ended EnLink Midstream Partners, LP Restricted Incentive Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 2,556,270 $ 14.43 Vested (1) (722,853 ) 10.02 Forfeited (4,490 ) 11.93 Converted to ENLC (2) (1,828,927 ) 16.11 Non-vested, end of period — $ — ____________________________ (1) Vested units included 249,201 units withheld for payroll taxes paid on behalf of employees. (2) As a result of the Merger, the Legacy ENLK Awards converted into ENLC unit-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2019 and 2018 is provided below (in millions): Three Months Ended March 31, EnLink Midstream Partners, LP Restricted Incentive Units: 2019 2018 Aggregate intrinsic value of units vested $ 8.0 $ 8.7 Fair value of units vested $ 7.2 $ 12.8 (c) EnLink Midstream Partners, LP Performance Units Prior to the Merger, our general partner granted performance awards under the GP Plan. The performance award agreements provided that the vesting of performance units (i.e., performance-based restricted incentive units) granted thereunder was dependent on the achievement of certain total shareholder return (“TSR”) performance goals relative to the TSR achievement of a peer group of companies (the “Peer Companies”) over the applicable performance period. The performance award agreements contemplated that the Peer Companies for an individual performance award (the “Subject Award”) were the companies comprising the AMZ, excluding ENLK and ENLC, on the grant date for the Subject Award. The performance units would vest based on the percentile ranking of the average of ENLK’s and ENLC’s TSR achievement (“EnLink TSR”) for the applicable performance period relative to the TSR achievement of the Peer Companies. As of the closing of the Merger, these performance-based Legacy ENLK Awards were modified, such that, the performance goal will, on a weighted average basis, (i) continue to relate to the EnLink TSR relative to the TSR performance of the Peer Companies in respect of periods preceding the effective time of the Merger; and (ii) relate solely to the TSR performance of ENLC relative to the TSR performance of such Peer Companies in respect of periods on and after the effective time of the Merger . At the end of the vesting period, recipients receive distribution equivalents, if any, with respect to the number of performance units vested. The vesting of units ranges from zero to 200% of the units granted depending on the extent to which the related performance goals are achieved over the relevant performance period. The fair value of each performance unit was estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all performance unit grants made under the plan: (i) a risk-free interest rate based on United States Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of ENLK’s common units and the designated Peer Companies’ securities; (iii) an estimated ranking of ENLK among the designated Peer Companies; and (iv) the distribution yield. The fair value of the performance unit on the date of grant is expensed over a vesting period of approximately three years . The following table presents a summary of the performance units: Three Months Ended EnLink Midstream Partners, LP Performance Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 451,669 $ 17.74 Vested (1) (161,410 ) 10.54 Converted to ENLC (2) (290,259 ) 28.31 Non-vested, end of period — $ — ____________________________ (1) Vested units included 62,403 units withheld for payroll taxes paid on behalf of employees. (2) As a result of the Merger, the performance-based Legacy ENLK Awards converted into ENLC performance-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2019 and 2018 is provided below (in millions). Three Months Ended March 31, EnLink Midstream Partners, LP Performance Units: 2019 2018 Aggregate intrinsic value of units vested $ 2.1 $ 2.0 Fair value of units vested $ 1.7 $ 4.1 (d) EnLink Midstream, LLC Restricted Incentive Units ENLC restricted incentive units are valued at their fair value at the date of grant, which is equal to the market value of ENLC common units on such date. A summary of the restricted incentive unit activity for the three months ended March 31, 2019 is provided below: Three Months Ended EnLink Midstream, LLC Restricted Incentive Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 2,425,867 $ 14.62 Granted (1) 1,770,170 11.45 Vested (1)(2) (1,214,354 ) 10.35 Forfeited (54,090 ) 11.71 Converted from ENLK (3) 2,103,266 14.01 Non-vested, end of period 5,030,859 $ 14.31 Aggregate intrinsic value, end of period (in millions) $ 64.3 ____________________________ (1) Restricted incentive units typically vest at the end of three years. In March 2019, ENLC granted 420,842 restricted incentive units with a fair value of $4.8 million to officers and certain employees as bonus payments for 2018, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. (2) Vested units included 409,384 units withheld for payroll taxes paid on behalf of employees. (3) Represents Legacy ENLK Awards that were converted into ENLC unit-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2019 and 2018 is provided below (in millions): Three Months Ended EnLink Midstream, LLC Restricted Incentive Units: 2019 2018 Aggregate intrinsic value of units vested $ 12.4 $ 8.9 Fair value of units vested $ 12.6 $ 13.1 As of March 31, 2019 , there was $44.6 million of unrecognized compensation cost related to non-vested ENLC restricted incentive units. The cost is expected to be recognized over a weighted-average period of 2.0 years . For all restricted incentive unit awards granted after March 8, 2019 to certain officers and employees (the “grantee”), such awards (the “Subject Grants”) generally provide that, subject to the satisfaction of the conditions set forth in the agreement, the Subject Grants will vest on the third anniversary of the vesting commencement date (the “Regular Vesting Date”). The Subject Grants will be forfeited if the grantee’s employment or service with ENLC and its affiliates terminates prior to the Regular Vesting Date except that the Subject Grants will vest in full or on a pro-rated basis for certain terminations of employment or service prior to the Regular Vesting Date. For instance, the Subject Grants will vest on a pro-rated basis for any terminations of the grantee’s employment: (i) due to retirement, (ii) by ENLC or its affiliates without cause, or (iii) by the grantee for good reason (each, a “Covered Termination” and more particularly defined in the Subject Grants agreement) except that the Subject Grants will vest in full if the applicable Covered Termination is a “normal retirement” (as defined in the Subject Grants agreement) or the applicable Covered Termination occurs after a change of control (if any). The Subject Grants will vest in full if death or a qualifying disability occurs prior to the Regular Vesting Date. (e) EnLink Midstream, LLC’s Performance Units ENLC grants performance awards under the 2014 Plan. The performance award agreements provide that the vesting of performance units (i.e., performance-based restricted incentive units) granted thereunder is dependent on the achievement of certain performance goals over the applicable performance period. At the end of the vesting period, recipients receive distribution equivalents, if any, with respect to the number of performance units vested. The vesting of units ranges from zero to 200% of the units granted depending on the extent to which the related performance goals are achieved over the relevant performance period. Performance awards granted prior to March 8, 2019 provided that the vesting of performance units granted was dependent on the achievement of certain TSR performance goals relative to the TSR achievement of the Peer Companies over the applicable performance period. Prior to the Merger, vesting of the performance units was based on the percentile ranking of the EnLink TSR for the applicable performance period relative to the TSR achievement of the Peer Companies. As of the effective time of the Merger, these performance-based awards were modified, such that, the performance goal will, on a weighted average basis, (i) continue to relate to the EnLink TSR relative to the TSR performance of the Peer Companies in respect of periods preceding the effective time of the Merger; and (ii) relate solely to the TSR performance of ENLC relative to the TSR performance of such Peer Companies in respect of periods on and after the effective time of the Merger. The following table presents a summary of the performance units: Three Months Ended EnLink Midstream, LLC Performance Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 418,149 $ 19.15 Granted 907,337 13.53 Vested (1) (161,286 ) 11.71 Converted from ENLK (2) 333,798 25.84 Non-vested, end of period 1,497,998 $ 18.04 Aggregate intrinsic value, end of period (in millions) $ 19.1 ____________________________ (1) Vested units included 62,219 units withheld for payroll taxes paid on behalf of employees. (2) As a result of the Merger, the performance-based Legacy ENLK Awards converted into ENLC performance-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2019 and 2018 is provided below (in millions): Three Months Ended March 31, EnLink Midstream, LLC Performance Units: 2019 2018 Aggregate intrinsic value of units vested $ 1.8 $ 1.9 Fair value of units vested $ 1.9 $ 4.2 As of March 31, 2019 , there was $16.6 million of unrecognized compensation cost that related to non-vested ENLC performance units. That cost is expected to be recognized over a weighted-average period of 2.2 years . In connection with the GIP Transaction, certain outstanding performance unit agreements were modified to, among other things: (i) provide that the awards granted thereunder did not vest due to the closing of the GIP Transaction, and (ii) increase the minimum vesting of units from zero to 100% as described in our Current Report on Form 8-K filed with the Securities and Exchange Commission on July 23, 2018. The modified performance units retained the original vesting schedules. As a result of the modifications, we will recognize an additional $2.1 million compensation cost over the life of these ENLC performance units. In connection with the Merger, Legacy ENLK Awards with “performance-based” vesting and payment conditions were modified to reflect the Performance Metric Adjustment (as defined in the Merger Agreement) as described in our Current Report on Form 8-K filed with the Commission on January 29, 2019. The modified performance units retained the original vesting schedules. As a result of the modifications, we will recognize an additional $0.7 million in compensation costs over the life of the Legacy ENLK Awards. 2019 Performance Unit Awards For all performance awards granted after March 8, 2019 to the grantee, the vesting of performance units is dependent on (a) the grantee’s continued employment or service with ENLC or its affiliates for all relevant periods and (b) EnLink TSR and a performance goal based on cash flow (“Cash Flow”). At the time of grant, the Board of Directors of the managing member of ENLC (the “Board”) will determine the relative weighting of the two performance goals by including in the award agreement the number of units that will be eligible for vesting depending on the achievement of the TSR performance goals (the “Total TSR Units”) versus the achievement of the Cash Flow performance goals (the “Total CF Units”). These performance awards have four separate performance periods: (i) three performance periods are each of the first, second, and third calendar years that occur following the vesting commencement date of the performance awards and (ii) the fourth performance period is the cumulative three-year period from the vesting commencement date through the third anniversary thereof (the “Cumulative Performance Period”). One-fourth of the Total TSR Units (the “Tranche TSR Units”) relates to each of the four performance periods described above. Following the end date of a given performance period, the Governance and Compensation Committee (the “Committee”) of the Board will measure and determine the TSR performance of ENLC (the “ENLC TSR”) relative to the TSR performance of a designated group of peer companies (the “Designated Peer Companies”) to determine the Tranche TSR Units that are eligible to vest, subject to the grantee’s continued employment or service with ENLC or its affiliates through the end date of the Cumulative Performance Period. In short, the TSR for a given performance period is defined as (i)(A) the average closing price of a common equity security at the end of the relevant performance period minus (B) the average closing price of a common equity security at the beginning of the relevant performance period plus (C) reinvested dividends divided by (ii) the average closing price of a common equity security at the beginning of the relevant performance period. The following table sets out the levels at which the Tranche TSR Units may vest (using linear interpolation) based on the ENLC TSR percentile ranking for the applicable performance period relative to the TSR achievement of the Designated Peer Companies: Performance Level Achieved ENLC TSR Vesting percentage of the Tranche TSR Units Below Threshold Less than 25% 0% Threshold Equal to 25% 50% Target Equal to 50% 100% Maximum Greater than or Equal to 75% 200% Approximately one-third of the Total CF Units (the “Tranche CF Units”) relates to each of the first three performance periods described above (i.e., the Cash Flow performance goal does not relate to the Cumulative Performance Period). The Board will establish the Cash Flow performance targets for purposes of the column in the table below titled “ENLC’s Achieved Cash Flow” for each performance period no later than March 31 of the year in which the relevant performance period begins. Following the end date of a given performance period, the Committee will measure and determine the Cash Flow performance of ENLC to determine the Tranche CF Units that are eligible to vest, subject to the grantee’s continued employment or service with ENLC or its affiliates through the end of the Cumulative Performance Period. In short, the Performance-Based Award Agreement defines Cash Flow for a given performance period as (A)(i) ENLC’s adjusted EBITDA minus (ii) interest expense, current taxes and other, maintenance capital expenditures, and preferred unit accrued distributions divided by (B) the time-weighted average number of ENLC’s common units outstanding during the relevant performance period. The following table sets out the levels at which the Tranche CF Units will be eligible to vest (using linear interpolation) based on the Cash Flow performance of ENLC for the performance period ending December 31, 2019: Performance Level ENLC’s Achieved Cash Flow Vesting percentage of the Tranche CF Units Below Threshold Less than $1.43 0% Threshold Equal to $1.43 50% Target Equal to $1.55 100% Maximum Greater than or Equal to $1.72 200% The fair value of each performance unit is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all performance unit grants made under the plan: (i) a risk-free interest rate based on United States Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of ENLC’s common units and the Designated Peer Companies’ or Peer Companies’ securities as applicable; (iii) an estimated ranking of ENLC among the Designated Peer Companies or Peer Companies, and (iv) the distribution yield. The fair value of the performance unit on the date of grant is expensed over a vesting period of approximately three years . The following table presents a summary of the grant-date fair value assumptions by performance unit grant date: EnLink Midstream, LLC Performance Units: March 2019 Beginning TSR price $ 10.92 Risk-free interest rate 2.42 % Volatility factor 33.86 % Distribution yield 9.7 % |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | (10) Derivatives Interest Rate Swaps We periodically enter into interest rate swaps in connection with new debt issuances. During the debt issuance process, we are exposed to variability in future long-term debt interest payments that may result from changes in the benchmark interest rate (commonly the U.S. Treasury yield) prior to the debt being issued. In order to hedge this variability, we enter into interest rate swaps to effectively lock in the benchmark interest rate at the inception of the swap. Prior to 2017, we did not designate interest rate swaps as hedges and, therefore, included the associated settlement gains and losses as interest expense, net of interest income, on the consolidated statements of operations. In May 2017, we entered into an interest rate swap in connection with the issuance of our 2047 Notes. In accordance with ASC 815, we designated this swap as a cash flow hedge. Upon settlement of the interest rate swap in May 2017, we recorded the associated $2.2 million settlement loss in accumulated comprehensive loss on the consolidated balance sheets. We will amortize the settlement loss into interest expense on the consolidated statements of operations over the term of the 2047 Notes. There was no ineffectiveness related to the hedge. For the three months ended March 31, 2019 , we amortized an immaterial amount of the settlement loss into interest expense from accumulated other comprehensive income (loss). We expect to recognize $0.1 million of interest expense out of accumulated other comprehensive income (loss) over the next twelve months. We have no open interest rate swap positions as of March 31, 2019 . Commodity Swaps We manage our exposure to changes in commodity prices by hedging the impact of market fluctuations. Commodity swaps are used both to manage and hedge price and location risk related to these market exposures and to manage margins on offsetting fixed-price purchase or sale commitments for physical quantities of crude, condensate, natural gas, and NGLs. We do not designate commodity swaps as cash flow or fair value hedges for hedge accounting treatment under ASC 815. Therefore, changes in the fair value of our derivatives are recorded in revenue in the period incurred. In addition, our commodity risk management policy does not allow us to take speculative positions with our derivative contracts. We commonly enter into index (float-for-float) or fixed-for-float swaps in order to mitigate our cash flow exposure to fluctuations in the future prices of natural gas, NGLs, and crude oil. For natural gas, index swaps are used to protect against the price exposure of daily priced gas versus first-of-month priced gas. For condensate, crude oil, and natural gas, index swaps are also used to hedge the basis location price risk resulting from supply and markets being priced on different indices. For natural gas, NGLs, condensate, and crude oil, fixed-for-float swaps are used to protect cash flows against price fluctuations: (1) where we receive a percentage of liquids as a fee for processing third-party gas or where we receive a portion of the proceeds of the sales of natural gas and liquids as a fee, (2) in the natural gas processing and fractionation components of our business and (3) where we are mitigating the price risk for product held in inventory or storage. Assets and liabilities related to our derivative contracts are included in the fair value of derivative assets and liabilities, and the change in fair value of these contracts is recorded net as a gain (loss) on derivative activity in “ Gain on derivative activity ” in the consolidated statements of operations. We estimate the fair value of all of our derivative contracts based upon actively-quoted prices of the underlying commodities. The components of gain on derivative activity in the consolidated statements of operations related to commodity swaps are (in millions): Three Months Ended March 31, 2019 2018 Change in fair value of derivatives $ (2.0 ) $ (3.5 ) Realized gain on derivatives 3.8 4.0 Gain on derivative activity $ 1.8 $ 0.5 The fair value of derivative assets and liabilities related to commodity swaps are as follows (in millions): March 31, 2019 December 31, 2018 Fair value of derivative assets—current $ 8.7 $ 28.6 Fair value of derivative assets—long-term 4.6 4.1 Fair value of derivative liabilities—current (6.6 ) (21.8 ) Fair value of derivative liabilities—long-term (0.2 ) (2.4 ) Net fair value of derivatives $ 6.5 $ 8.5 Set forth below are the summarized notional volumes and fair values of all instruments held for price risk management purposes and related physical offsets at March 31, 2019 (in millions). The remaining term of the contracts extend no later than December 2022. March 31, 2019 Commodity Instruments Unit Volume Fair Value NGL (short contracts) Swaps Gallons (13.8 ) $ 1.2 NGL (long contracts) Swaps Gallons 2.6 (0.1 ) Natural Gas (short contracts) Swaps MMBtu (3.0 ) — Natural Gas (long contracts) Swaps MMBtu 4.6 (1.1 ) Crude and condensate (short contracts) Swaps MMbbls (12.7 ) 9.7 Crude and condensate (long contracts) Swaps MMbbls 1.5 (3.2 ) Total fair value of derivatives $ 6.5 On all transactions where we are exposed to counterparty risk, we analyze the counterparty’s financial condition prior to entering into an agreement, establish limits, and monitor the appropriateness of these limits on an ongoing basis. We primarily deal with financial institutions when entering into financial derivatives on commodities. We have entered into Master ISDAs that allow for netting of swap contract receivables and payables in the event of default by either party. If our counterparties failed to perform under existing swap contracts, the maximum loss on our gross receivable position of $13.3 million as of March 31, 2019 would be reduced to $7.5 million due to the offsetting of gross fair value payables against gross fair value receivables as allowed by the ISDAs. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (11) Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), sets forth a framework for measuring fair value and required disclosures about fair value measurements of assets and liabilities. Fair value under ASC 820 is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, use of unobservable prices or inputs are used to estimate the current fair value, often using an internal valuation model. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the item being valued. ASC 820 established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Our derivative contracts primarily consist of commodity swap contracts, which are not traded on a public exchange. The fair values of commodity swap contracts are determined using discounted cash flow techniques. The techniques incorporate Level 1 and Level 2 inputs for future commodity prices that are readily available in public markets or can be derived from information available in publicly-quoted markets. These market inputs are utilized in the discounted cash flow calculation considering the instrument’s term, notional amount, discount rate, and credit risk and are classified as Level 2 in hierarchy. Net assets measured at fair value on a recurring basis are summarized below (in millions): Level 2 March 31, 2019 December 31, 2018 Commodity Swaps (1) $ 6.5 $ 8.5 (1) The fair values of derivative contracts included in assets or liabilities for risk management activities represent the amount at which the instruments could be exchanged in a current arms-length transaction adjusted for our credit risk and/or the counterparty credit risk as required under ASC 820. Fair Value of Financial Instruments The estimated fair value of our financial instruments has been determined using available market information and valuation methodologies. Considerable judgment is required to develop the estimates of fair value; thus, the estimates provided below are not necessarily indicative of the amount we could realize upon the sale or refinancing of such financial instruments (in millions): March 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Fair Long-term debt, including current maturities of long-term debt (1) $ 4,364.2 $ 4,210.0 $ 4,319.6 $ 3,953.6 Secured term loan receivable $ 52.5 $ 52.5 $ 51.1 $ 51.1 ____________________________ (1) The carrying value of long-term debt, including current maturities of long-term debt, is reduced by debt issuance costs of $28.2 million and $24.3 million at March 31, 2019 and December 31, 2018 , respectively. The respective fair values do not factor in debt issuance costs. The carrying amounts of our cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term maturities of these assets and liabilities. As of March 31, 2019 and December 31, 2018 , we had total borrowings under senior unsecured notes of $3.5 billion maturing between 2019 and 2047 with fixed interest rates ranging from 2.7% to 5.6% . The fair values of all senior unsecured notes as of March 31, 2019 and December 31, 2018 were based on Level 2 inputs from third-party market quotations. The fair values of the secured term loan receivable were calculated using Level 2 inputs from third-party banks. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | (12) Segment Information Effective January 1, 2019, we changed our reportable operating segments to reflect how we currently make financial decisions and allocate resources. As of December 31, 2018 , our reportable operating segments consisted of the following: (i) natural gas gathering, processing, transmission, and fractionation operations located in north Texas and the Permian Basin primarily in west Texas, (ii) natural gas pipelines, processing plants, storage facilities, NGL pipelines, and fractionation assets in Louisiana, (iii) natural gas gathering and processing operations located throughout Oklahoma, and (iv) crude rail, truck, pipeline, and barge facilities in west Texas, south Texas, Louisiana, Oklahoma, and ORV. Effective January 1, 2019, we are reporting financial performance in five segments: Permian, North Texas, Oklahoma, Louisiana, and Corporate. Crude and condensate operations are combined regionally with natural gas and NGL operations in the Oklahoma and Permian segments, and ORV operations are included in the Louisiana segment. We have recast the segment information for the three months ended March 31, 2018 to conform to the current period presentation. Identification of the majority of our operating segments is based principally upon geographic regions served: • Permian Segment . The Permian segment includes our natural gas gathering, processing, and transmission activities and our crude oil operations in the Midland and Delaware Basins in west Texas and eastern New Mexico and our crude operations in south Texas; • North Texas Segment . The North Texas segment includes our natural gas gathering, processing, and transmission activities in north Texas; • Oklahoma Segment . The Oklahoma segment includes our natural gas gathering, processing, and transmission activities, and our crude oil operations in the Cana-Woodford, Arkoma-Woodford, northern Oklahoma Woodford, STACK, and CNOW shale areas; • Louisiana Segment . The Louisiana segment includes our natural gas pipelines, natural gas processing plants, storage facilities, fractionation facilities, and NGL assets located in Louisiana and our crude oil operations in ORV; and • Corporate Segment . The Corporate segment includes our unconsolidated affiliate investments in the Cedar Cove JV in Oklahoma, our ownership interest in GCF in south Texas, our derivative activity, and our general corporate assets and expenses. We evaluate the performance of our operating segments based on segment profits. Summarized financial information for our reportable segments is shown in the following tables (in millions): Permian North Texas Oklahoma Louisiana Corporate Totals Three Months Ended March 31, 2019 Natural gas sales $ 36.1 $ 50.6 $ 61.6 $ 122.2 $ — $ 270.5 NGL sales (0.2 ) 9.3 8.9 573.1 — 591.1 Crude oil and condensate sales 580.8 — 29.6 58.8 — 669.2 Other — — 0.1 — — 0.1 Product sales 616.7 59.9 100.2 754.1 — 1,530.9 NGL sales—related parties 97.2 28.5 126.1 3.2 (255.0 ) — Crude oil and condensate sales—related parties 4.0 1.0 — — (5.0 ) — Product sales—related parties 101.2 29.5 126.1 3.2 (260.0 ) — Gathering and transportation 10.3 63.6 55.3 17.2 — 146.4 Processing 7.7 21.1 34.1 0.9 — 63.8 NGL services — — — 11.7 — 11.7 Crude services 5.2 — 4.0 13.8 — 23.0 Other services 1.5 0.2 (0.3 ) 0.2 — 1.6 Midstream services 24.7 84.9 93.1 43.8 — 246.5 NGL services—related parties — — — (3.0 ) 3.0 — Crude services—related parties — — 0.3 — (0.3 ) — Midstream services—related parties — — 0.3 (3.0 ) 2.7 — Revenue from contracts with customers 742.6 174.3 319.7 798.1 (257.3 ) 1,777.4 Cost of sales (676.2 ) (73.7 ) (184.2 ) (686.6 ) 257.3 (1,363.4 ) Operating expenses (27.8 ) (25.7 ) (25.4 ) (35.6 ) — (114.5 ) Gain on derivative activity — — — — 1.8 1.8 Segment profit $ 38.6 $ 74.9 $ 110.1 $ 75.9 $ 1.8 $ 301.3 Depreciation and amortization $ (27.9 ) $ (34.3 ) $ (46.1 ) $ (41.8 ) $ (2.0 ) $ (152.1 ) Goodwill $ — $ — $ 190.3 $ — $ — $ 190.3 Capital expenditures $ 95.9 $ 4.3 $ 108.2 $ 41.0 $ 1.6 $ 251.0 Permian North Texas Oklahoma Louisiana Corporate Totals Three Months Ended March 31, 2018 Natural gas sales $ 37.7 $ 45.3 $ 48.1 $ 125.0 $ — $ 256.1 NGL sales 0.5 — 1.9 608.4 — 610.8 Crude oil and condensate sales 577.2 — 21.9 33.2 — 632.3 Product sales 615.4 45.3 71.9 766.6 — 1,499.2 Natural gas sales—related parties — — 0.5 — — 0.5 NGL sales—related parties 83.9 9.0 100.1 5.6 (196.2 ) 2.4 Crude oil and condensate sales—related parties 1.5 0.4 0.4 0.1 (1.7 ) 0.7 Product sales—related parties 85.4 9.4 101.0 5.7 (197.9 ) 3.6 Gathering and transportation 6.2 7.8 15.6 17.6 — 47.2 Processing 3.8 — 9.0 0.6 — 13.4 NGL services — — — 16.6 — 16.6 Crude services — — 0.1 12.8 — 12.9 Other services 1.7 0.3 0.1 — — 2.1 Midstream services 11.7 8.1 24.8 47.6 — 92.2 Gathering and transportation—related parties — 52.6 34.7 — — 87.3 Processing—related parties — 51.6 22.1 — — 73.7 Crude services—related parties 4.3 — 0.7 — — 5.0 Other services—related parties — — 0.2 — — 0.2 Midstream services—related parties 4.3 104.2 57.7 — — 166.2 Revenue from contracts with customers 716.8 167.0 255.4 819.9 (197.9 ) 1,761.2 Cost of sales (674.1 ) (49.9 ) (139.3 ) (716.1 ) 197.9 (1,381.5 ) Operating expenses (23.8 ) (28.4 ) (20.7 ) (36.3 ) — (109.2 ) Gain on derivative activity — — — — 0.5 0.5 Segment profit $ 18.9 $ 88.7 $ 95.4 $ 67.5 $ 0.5 $ 271.0 Depreciation and amortization $ (26.8 ) $ (31.3 ) $ (42.1 ) $ (35.9 ) $ (2.0 ) $ (138.1 ) Goodwill $ 29.3 $ 202.7 $ 190.3 $ — $ — $ 422.3 Capital expenditures $ 63.6 $ 2.5 $ 103.9 $ 10.0 $ 1.2 $ 181.2 The following table reconciles the segment profits reported above to the operating income as reported on the consolidated statements of operations (in millions): Three Months Ended March 31, 2019 2018 Segment profit $ 301.3 $ 271.0 General and administrative expenses (38.6 ) (26.2 ) Loss on disposition of assets — (0.1 ) Depreciation and amortization (152.1 ) (138.1 ) Operating income $ 110.6 $ 106.6 The table below represents information about segment assets as of March 31, 2019 and December 31, 2018 (in millions): Segment Identifiable Assets: March 31, 2019 December 31, 2018 Permian $ 2,198.0 $ 2,096.8 North Texas 1,239.5 1,308.2 Oklahoma 3,283.5 3,209.5 Louisiana 2,626.8 2,734.5 Corporate 204.5 222.3 Total identifiable assets $ 9,552.3 $ 9,571.3 |
Other Information
Other Information | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Information | (13) Other Information The following tables present additional detail for other current assets and other current liabilities, which consists of the following (in millions): Other Current Assets: March 31, 2019 December 31, 2018 Natural gas and NGLs inventory $ 39.4 $ 41.3 Secured term loan receivable from contract restructuring, net of discount o f $0.8 and $1.1 23.2 19.4 Prepaid expenses and other 9.2 12.1 Natural gas and NGLs inventory, prepaid expenses, and other $ 71.8 $ 72.8 Other Current Liabilities: March 31, 2019 December 31, 2018 Accrued interest $ 63.2 $ 37.3 Accrued wages and benefits, including taxes 16.9 37.2 Accrued ad valorem taxes 13.1 28.1 Capital expenditure accruals 59.9 50.6 Onerous performance obligations 4.5 9.0 Short-term lease liability 18.1 1.5 Suspense producer payments 18.4 34.6 Other 33.7 48.4 Other current liabilities $ 227.8 $ 246.7 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | (14) Subsequent Event Senior Unsecured Notes due 2029. On April 9, 2019, ENLC issued $500.0 million in aggregate principal amount of ENLC’s 5.375% senior unsecured notes due June 1, 2029 (the “2029 Notes”) at a price to the public of 100% of their face value. Interest payments on the 2029 Notes are payable on June 1 and December 1 of each year, beginning December 1, 2019. The 2029 Notes are fully and unconditionally guaranteed by ENLK. Net proceeds of approximately $496.5 million were used to repay outstanding borrowings under the Consolidated Credit Facility, including borrowings incurred on April 1, 2019 to repay at maturity all of the $400.0 million outstanding aggregate principal amount of ENLK’s 2.70% senior unsecured notes due 2019, and for general limited liability company purposes. Secured Term Loan Receivable. In April 2019, we became aware that the counterparty to our $58.0 million second lien secured term loan receivable, which was recorded at its discounted present value of $52.5 million on the consolidated balance sheet as of March 31, 2019, as described in “ Note 11—Fair Value Measurements ,” will not be able to make its contractual installment payment in May 2019 of $9.75 million for principal due on the outstanding balance. The counterparty has notified us that it is evaluating financial and strategic alternatives in order to satisfy its obligations, including obligations to its first lien secured lenders and our second lien secured term loan. There can be no assurance that any of these alternatives will occur or that we will collect all of the outstanding amounts under the second lien secured term loan. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with the instructions to Form 10-Q, are unaudited, and do not include all the information and disclosures required by GAAP for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of results of operations for a full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 . All significant intercompany balances and transactions have been eliminated in consolidation. |
Revenue Recognition | Revenue Recognition Minimum Volume Commitments and Firm Transportation Contracts Certain of our gathering and processing agreements provide for quarterly or annual MVCs. Under these agreements, our customers or suppliers agree to ship and/or process a minimum volume of product on our systems over an agreed time period. If a customer or supplier under such an agreement fails to meet its MVC for a specified period, the customer is obligated to pay a contractually-determined fee based upon the shortfall between actual product volumes and the MVC for that period. Some of these agreements also contain make-up right provisions that allow a customer or supplier to utilize gathering or processing fees in excess of the MVC in subsequent periods to offset shortfall amounts in previous periods. We record revenue under MVC contracts during periods of shortfall when it is known that the customer cannot, or will not, make up the deficiency in subsequent periods. Deficiency fee revenue is included in midstream services revenue. For our firm transportation contracts, we transport commodities owned by others for a stated monthly fee for a specified monthly quantity with an additional fee based on actual volumes. We include transportation fees from firm transportation contracts in our midstream services revenue. The following table summarizes the contractually committed fees that we expect to recognize in our consolidated statements of operations, in either revenue or reductions to cost of sales, from MVC and firm transportation contractual provisions. All amounts in the table below are determined using the contractually-stated MVC or firm transportation volumes specified for each period multiplied by the relevant deficiency or reservation fee. Actual amounts could differ due to the timing of revenue recognition or reductions to cost of sales resulting from make-up right provisions included in our agreements, as well as due to nonpayment or nonperformance by our customers. These fees do not represent the shortfall amounts we expect to collect under our MVC contracts, as we generally do not expect volume shortfalls to equal the full amount of the contractual MVCs during these periods. For example, for the three months ended March 31, 2019 , we had contractual commitments of $38.5 million under our MVC contracts and recorded $3.8 million of revenue due to volume shortfalls. MVC and Firm Transportation Commitments (1) 2019 (remaining) $ 196.7 2020 252.7 2021 104.7 2022 94.3 2023 91.6 Thereafter 279.7 Total $ 1,019.7 |
Accounting Standards to be Adopted in Future Periods and Adopted Accounting Standards | Accounting Standards to be Adopted in Future Periods On August 29, 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which amends ASC 350-40, Internal-Use Software (“ASC 350-40”) to address a customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. ASU 2018-15 aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Specifically, the ASU amends ASC 350-40 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a cloud computing arrangement that is considered a service contract. To the extent costs incurred in a cloud computing arrangement are capitalizable, the corresponding amortization will be included in “Operating expenses” or “General and administrative” in the consolidated statement of operations, rather than “Depreciation and amortization.” We are currently evaluating the impact of ASU 2018-15 on our consolidated financial statements and will adopt ASU 2018-15 effective January 1, 2020. (d) Adopted Accounting Standards Effective January 1, 2019, we adopted ASC 842, Leases , using the modified retrospective approach whereby we recognized leases on our consolidated balance sheet by recording a right-of-use asset and lease liability. We applied certain practical expedients that were allowed in the adoption of ASC 842, including not reassessing existing contracts for lease arrangements, not reassessing existing lease classification, not recording a right-of-use asset or lease liability for leases of twelve months or less, and not separating lease and non-lease components of a lease arrangement. In connection with the adoption of ASC 842 in January 2019, we recorded a lease liability of $97.6 million , a right-of-use asset of $75.3 million , and a reduction of $22.6 million in other liabilities previously recorded related to lease incentives. For additional information about our adoption of ASC 842, refer to “ Note 5—Leases .” |
Derivatives | We periodically enter into interest rate swaps in connection with new debt issuances. During the debt issuance process, we are exposed to variability in future long-term debt interest payments that may result from changes in the benchmark interest rate (commonly the U.S. Treasury yield) prior to the debt being issued. In order to hedge this variability, we enter into interest rate swaps to effectively lock in the benchmark interest rate at the inception of the swap. Prior to 2017, we did not designate interest rate swaps as hedges and, therefore, included the associated settlement gains and losses as interest expense, net of interest income, on the consolidated statements of operations. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table summarizes the contractually committed fees that we expect to recognize in our consolidated statements of operations, in either revenue or reductions to cost of sales, from MVC and firm transportation contractual provisions. All amounts in the table below are determined using the contractually-stated MVC or firm transportation volumes specified for each period multiplied by the relevant deficiency or reservation fee. Actual amounts could differ due to the timing of revenue recognition or reductions to cost of sales resulting from make-up right provisions included in our agreements, as well as due to nonpayment or nonperformance by our customers. These fees do not represent the shortfall amounts we expect to collect under our MVC contracts, as we generally do not expect volume shortfalls to equal the full amount of the contractual MVCs during these periods. For example, for the three months ended March 31, 2019 , we had contractual commitments of $38.5 million under our MVC contracts and recorded $3.8 million of revenue due to volume shortfalls. MVC and Firm Transportation Commitments (1) 2019 (remaining) $ 196.7 2020 252.7 2021 104.7 2022 94.3 2023 91.6 Thereafter 279.7 Total $ 1,019.7 ____________________________ (1) Amounts do not represent expected shortfall under these commitments. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Change in Carrying Value | The following table represents our change in carrying value of intangible assets (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Three Months Ended March 31, 2019 Customer relationships, beginning of period $ 1,795.8 $ (422.2 ) $ 1,373.6 Amortization expense — (30.9 ) (30.9 ) Customer relationships, end of period $ 1,795.8 $ (453.1 ) $ 1,342.7 |
Summary of Estimated Aggregate Amortization Expense | The following table summarizes our estimated aggregate amortization expense for the next five years and thereafter (in millions): 2019 (remaining) $ 92.8 2020 123.7 2021 123.7 2022 123.7 2023 123.6 Thereafter 755.2 Total $ 1,342.7 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | Lease balances are recorded on the consolidated balance sheets as follows (in millions): March 31, 2019 Finance leases: Property and equipment $ 5.2 Accumulated depreciation (0.7 ) Property and equipment, net of accumulated depreciation $ 4.5 Other current liabilities $ 0.8 Operating leases: Other assets, net $ 75.3 Other current liabilities $ 17.3 Other long-term liabilities $ 80.9 |
Lease, Cost | Lease expense is recognized on the consolidated statements of operations as “Operating expenses” and “General and administrative” depending on the nature of the leased asset. The components of total lease expense are as follows (in millions): Three Months Ended March 31, 2019 Finance lease expense: Amortization of right-of-use asset $ 0.7 Interest on lease liability — Operating lease expense: Long-term operating lease expense 6.3 Short-term lease expense 6.9 Variable lease expense 1.6 Total lease expense $ 15.5 Other information about our leases are as follows (dollar amounts in millions, lease terms in years): Three Months Ended March 31, 2019 Supplemental cash flow information: Cash payments for finance leases included in cash flows from financing activities $ 0.4 Cash payments for operating leases included in cash flows from operating activities $ 7.0 Right-of-use assets obtained in exchange for operating lease liabilities $ 80.6 Other lease information Weighted-average remaining lease term - Finance leases 0.5 years Weighted-average remaining lease term - Operating leases 11.6 years Weighted-average discount rate - Finance leases 9.3 % Weighted-average discount rate - Operating leases 5.2 % |
Lessee, Operating Lease, Liability, Maturity | Total 2019 (remaining) 2020 2021 2022 2023 Thereafter Undiscounted finance lease liability $ 0.8 $ 0.8 $ — $ — $ — $ — $ — Reduction due to present value — — — — — — — Finance lease liability 0.8 0.8 — — — — — Undiscounted operating lease liability 139.2 16.5 16.0 12.9 9.1 8.9 75.8 Reduction due to present value (41.0 ) (3.6 ) (4.2 ) (3.7 ) (3.4 ) (3.0 ) (23.1 ) Operating lease liability 98.2 12.9 11.8 9.2 5.7 5.9 52.7 Total lease liability $ 99.0 $ 13.7 $ 11.8 $ 9.2 $ 5.7 $ 5.9 $ 52.7 |
Finance Lease, Liability, Maturity | Total 2019 (remaining) 2020 2021 2022 2023 Thereafter Undiscounted finance lease liability $ 0.8 $ 0.8 $ — $ — $ — $ — $ — Reduction due to present value — — — — — — — Finance lease liability 0.8 0.8 — — — — — Undiscounted operating lease liability 139.2 16.5 16.0 12.9 9.1 8.9 75.8 Reduction due to present value (41.0 ) (3.6 ) (4.2 ) (3.7 ) (3.4 ) (3.0 ) (23.1 ) Operating lease liability 98.2 12.9 11.8 9.2 5.7 5.9 52.7 Total lease liability $ 99.0 $ 13.7 $ 11.8 $ 9.2 $ 5.7 $ 5.9 $ 52.7 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | As of March 31, 2019 and December 31, 2018 , long-term debt consisted of the following (in millions): March 31, 2019 December 31, 2018 Outstanding Principal Premium (Discount) Long-Term Debt Outstanding Principal Premium (Discount) Long-Term Debt Intercompany debt (1) $ 898.4 $ — $ 898.4 $ — $ — $ — Term Loan due 2021 (2) — — — 850.0 — 850.0 2.70% Senior unsecured notes due 2019 (3) 400.0 — 400.0 400.0 — 400.0 4.40% Senior unsecured notes due 2024 550.0 1.7 551.7 550.0 1.8 551.8 4.15% Senior unsecured notes due 2025 750.0 (0.8 ) 749.2 750.0 (0.9 ) 749.1 4.85% Senior unsecured notes due 2026 500.0 (0.5 ) 499.5 500.0 (0.5 ) 499.5 5.60% Senior unsecured notes due 2044 350.0 (0.2 ) 349.8 350.0 (0.2 ) 349.8 5.05% Senior unsecured notes due 2045 450.0 (6.1 ) 443.9 450.0 (6.2 ) 443.8 5.45% Senior unsecured notes due 2047 500.0 (0.1 ) 499.9 500.0 (0.1 ) 499.9 Debt classified as long-term, including current maturities of long-term debt $ 4,398.4 $ (6.0 ) 4,392.4 $ 4,350.0 $ (6.1 ) 4,343.9 Debt issuance cost (4) (28.2 ) (24.3 ) Less: Current maturities of long-term debt (3) — (399.8 ) Long-term debt, net of unamortized issuance cost $ 4,364.2 $ 3,919.8 ____________________________ (1) Intercompany debt includes borrowings under the Term Loan and the Consolidated Credit Facility to fund the operations and growth capital expenditures of ENLK through an intercompany arrangement with ENLC. Interest charged to ENLK for borrowings made through the intercompany arrangement will be substantially the same as interest charged to ENLC on borrowings under the Term Loan and the Consolidated Credit Facility. (2) In December 2018, ENLK entered into an $850.0 million , three-year unsecured Term Loan. Borrowings under the Term Loan bear interest based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was 3.9% at December 31, 2018 . In connection with the closing of the Merger, the Term Loan was assumed by ENLC, and we became a guarantor of the Term Loan. (3) The 2.70% senior unsecured notes matured on April 1, 2019 and were refinanced through borrowings on the intercompany debt. Therefore, the outstanding principal balance, net of discount and debt issuance costs, is classified as “Long-term debt” on the consolidated balance sheet as of March 31, 2019 and “Current maturities of long-term debt” as of December 31, 2018 . (4) Net of amortization of $10.9 million and $15.3 million at March 31, 2019 and December 31, 2018 , respectively. |
Partners' Capital (Tables)
Partners' Capital (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Partners' Capital Notes [Abstract] | |
Summary of Distribution Activity | A summary of the distribution activity relating to the Series B Preferred Units during the three months ended March 31, 2019 and 2018 is provided below: Declaration period Distribution paid as additional Series B Preferred Units Cash Distribution (in millions) Date paid/payable 2019 Fourth Quarter of 2018 425,785 $ 16.5 February 13, 2019 First Quarter of 2019 147,887 $ 16.7 May 14, 2019 2018 Fourth Quarter of 2017 413,658 $ 16.0 February 13, 2018 First Quarter of 2018 416,657 $ 16.2 May 14, 2018 A summary of the distribution activity relating to the common units for periods prior to the Merger is provided below: Declaration period Distribution/unit Date paid/payable 2019 Fourth Quarter of 2018 $ 0.39 February 13, 2019 2018 Fourth Quarter of 2017 $ 0.39 February 13, 2018 First Quarter of 2018 $ 0.39 May 14, 2018 |
Incentive Distributions | The net income allocated to the general partner is as follows (in millions): Three Months Ended 2019 2018 Income allocation for incentive distributions $ — $ 14.8 Unit-based compensation attributable to ENLC’s restricted and performance units (12.1 ) (4.4 ) General partner share of net income 0.4 0.2 General partner interest in EOGP acquisition 2.4 4.2 General partner interest in net income (loss) $ (9.3 ) $ 14.8 |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Activity and Investment in Unconsolidated Affiliates | The following table shows the activity related to our investment in unconsolidated affiliates for the periods indicated (in millions): Three Months Ended 2019 2018 GCF Distributions $ 2.2 $ 5.7 Equity in income $ 5.7 $ 4.6 Cedar Cove JV Distributions $ 0.3 $ 0.3 Equity in loss $ (0.4 ) $ (1.6 ) Total Distributions $ 2.5 $ 6.0 Equity in income $ 5.3 $ 3.0 The following table shows the balances related to our investment in unconsolidated affiliates as of March 31, 2019 and December 31, 2018 (in millions): March 31, 2019 December 31, 2018 GCF $ 45.4 $ 41.9 Cedar Cove JV 37.5 38.2 Total investment in unconsolidated affiliates $ 82.9 $ 80.1 |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Amounts Recognized in Consolidated Financial Statements | Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions): Three Months Ended March 31, 2019 2018 Cost of unit-based compensation charged to operating expense $ 0.3 $ 2.0 Cost of unit-based compensation charged to general and administrative expense 10.6 3.1 Total unit-based compensation expense $ 10.9 $ 5.1 |
Summary of Restricted Incentive Unit Activity | A summary of the restricted incentive unit activity for the three months ended March 31, 2019 is provided below: Three Months Ended EnLink Midstream Partners, LP Restricted Incentive Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 2,556,270 $ 14.43 Vested (1) (722,853 ) 10.02 Forfeited (4,490 ) 11.93 Converted to ENLC (2) (1,828,927 ) 16.11 Non-vested, end of period — $ — ____________________________ (1) Vested units included 249,201 units withheld for payroll taxes paid on behalf of employees. (2) As a result of the Merger, the Legacy ENLK Awards converted into ENLC unit-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. A summary of the restricted incentive unit activity for the three months ended March 31, 2019 is provided below: Three Months Ended EnLink Midstream, LLC Restricted Incentive Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 2,425,867 $ 14.62 Granted (1) 1,770,170 11.45 Vested (1)(2) (1,214,354 ) 10.35 Forfeited (54,090 ) 11.71 Converted from ENLK (3) 2,103,266 14.01 Non-vested, end of period 5,030,859 $ 14.31 Aggregate intrinsic value, end of period (in millions) $ 64.3 ____________________________ (1) Restricted incentive units typically vest at the end of three years. In March 2019, ENLC granted 420,842 restricted incentive units with a fair value of $4.8 million to officers and certain employees as bonus payments for 2018, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. (2) Vested units included 409,384 units withheld for payroll taxes paid on behalf of employees. (3) Represents Legacy ENLK Awards that were converted into ENLC unit-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. |
Summary of Restricted Units' Aggregate Intrinsic Value | A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2019 and 2018 is provided below (in millions): Three Months Ended EnLink Midstream, LLC Restricted Incentive Units: 2019 2018 Aggregate intrinsic value of units vested $ 12.4 $ 8.9 Fair value of units vested $ 12.6 $ 13.1 A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2019 and 2018 is provided below (in millions): Three Months Ended March 31, EnLink Midstream Partners, LP Restricted Incentive Units: 2019 2018 Aggregate intrinsic value of units vested $ 8.0 $ 8.7 Fair value of units vested $ 7.2 $ 12.8 |
Summary of Performance Units | The following table presents a summary of the performance units: Three Months Ended EnLink Midstream Partners, LP Performance Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 451,669 $ 17.74 Vested (1) (161,410 ) 10.54 Converted to ENLC (2) (290,259 ) 28.31 Non-vested, end of period — $ — ____________________________ (1) Vested units included 62,403 units withheld for payroll taxes paid on behalf of employees. (2) As a result of the Merger, the performance-based Legacy ENLK Awards converted into ENLC performance-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2019 and 2018 is provided below (in millions). Three Months Ended March 31, EnLink Midstream Partners, LP Performance Units: 2019 2018 Aggregate intrinsic value of units vested $ 2.1 $ 2.0 Fair value of units vested $ 1.7 $ 4.1 The following table presents a summary of the performance units: Three Months Ended EnLink Midstream, LLC Performance Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 418,149 $ 19.15 Granted 907,337 13.53 Vested (1) (161,286 ) 11.71 Converted from ENLK (2) 333,798 25.84 Non-vested, end of period 1,497,998 $ 18.04 Aggregate intrinsic value, end of period (in millions) $ 19.1 ____________________________ (1) Vested units included 62,219 units withheld for payroll taxes paid on behalf of employees. (2) As a result of the Merger, the performance-based Legacy ENLK Awards converted into ENLC performance-based awards using the 1.15 exchange ratio (as defined in the Merger Agreement) as the conversion rate. A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2019 and 2018 is provided below (in millions): Three Months Ended March 31, EnLink Midstream, LLC Performance Units: 2019 2018 Aggregate intrinsic value of units vested $ 1.8 $ 1.9 Fair value of units vested $ 1.9 $ 4.2 |
Schedule Of Performance Stock Vesting Levels | The following table sets out the levels at which the Tranche TSR Units may vest (using linear interpolation) based on the ENLC TSR percentile ranking for the applicable performance period relative to the TSR achievement of the Designated Peer Companies: Performance Level Achieved ENLC TSR Vesting percentage of the Tranche TSR Units Below Threshold Less than 25% 0% Threshold Equal to 25% 50% Target Equal to 50% 100% Maximum Greater than or Equal to 75% 200% Approximately one-third of the Total CF Units (the “Tranche CF Units”) relates to each of the first three performance periods described above (i.e., the Cash Flow performance goal does not relate to the Cumulative Performance Period). The Board will establish the Cash Flow performance targets for purposes of the column in the table below titled “ENLC’s Achieved Cash Flow” for each performance period no later than March 31 of the year in which the relevant performance period begins. Following the end date of a given performance period, the Committee will measure and determine the Cash Flow performance of ENLC to determine the Tranche CF Units that are eligible to vest, subject to the grantee’s continued employment or service with ENLC or its affiliates through the end of the Cumulative Performance Period. In short, the Performance-Based Award Agreement defines Cash Flow for a given performance period as (A)(i) ENLC’s adjusted EBITDA minus (ii) interest expense, current taxes and other, maintenance capital expenditures, and preferred unit accrued distributions divided by (B) the time-weighted average number of ENLC’s common units outstanding during the relevant performance period. The following table sets out the levels at which the Tranche CF Units will be eligible to vest (using linear interpolation) based on the Cash Flow performance of ENLC for the performance period ending December 31, 2019: Performance Level ENLC’s Achieved Cash Flow Vesting percentage of the Tranche CF Units Below Threshold Less than $1.43 0% Threshold Equal to $1.43 50% Target Equal to $1.55 100% Maximum Greater than or Equal to $1.72 200% |
Summary of Grant-Date Fair Values | The following table presents a summary of the grant-date fair value assumptions by performance unit grant date: EnLink Midstream, LLC Performance Units: March 2019 Beginning TSR price $ 10.92 Risk-free interest rate 2.42 % Volatility factor 33.86 % Distribution yield 9.7 % |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Components of Gain (Loss) | The components of gain on derivative activity in the consolidated statements of operations related to commodity swaps are (in millions): Three Months Ended March 31, 2019 2018 Change in fair value of derivatives $ (2.0 ) $ (3.5 ) Realized gain on derivatives 3.8 4.0 Gain on derivative activity $ 1.8 $ 0.5 |
Fair Value of Derivative Assets and Liabilities | The fair value of derivative assets and liabilities related to commodity swaps are as follows (in millions): March 31, 2019 December 31, 2018 Fair value of derivative assets—current $ 8.7 $ 28.6 Fair value of derivative assets—long-term 4.6 4.1 Fair value of derivative liabilities—current (6.6 ) (21.8 ) Fair value of derivative liabilities—long-term (0.2 ) (2.4 ) Net fair value of derivatives $ 6.5 $ 8.5 |
Summary of Notional Volumes and Fair Value of Instruments | Set forth below are the summarized notional volumes and fair values of all instruments held for price risk management purposes and related physical offsets at March 31, 2019 (in millions). The remaining term of the contracts extend no later than December 2022. March 31, 2019 Commodity Instruments Unit Volume Fair Value NGL (short contracts) Swaps Gallons (13.8 ) $ 1.2 NGL (long contracts) Swaps Gallons 2.6 (0.1 ) Natural Gas (short contracts) Swaps MMBtu (3.0 ) — Natural Gas (long contracts) Swaps MMBtu 4.6 (1.1 ) Crude and condensate (short contracts) Swaps MMbbls (12.7 ) 9.7 Crude and condensate (long contracts) Swaps MMbbls 1.5 (3.2 ) Total fair value of derivatives $ 6.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Net Assets (Liabilities) Measured on a Recurring Basis | Net assets measured at fair value on a recurring basis are summarized below (in millions): Level 2 March 31, 2019 December 31, 2018 Commodity Swaps (1) $ 6.5 $ 8.5 (1) The fair values of derivative contracts included in assets or liabilities for risk management activities represent the amount at which the instruments could be exchanged in a current arms-length transaction adjusted for our credit risk and/or the counterparty credit risk as required under ASC 820. |
Fair Value of Financial Instruments | The estimated fair value of our financial instruments has been determined using available market information and valuation methodologies. Considerable judgment is required to develop the estimates of fair value; thus, the estimates provided below are not necessarily indicative of the amount we could realize upon the sale or refinancing of such financial instruments (in millions): March 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Fair Long-term debt, including current maturities of long-term debt (1) $ 4,364.2 $ 4,210.0 $ 4,319.6 $ 3,953.6 Secured term loan receivable $ 52.5 $ 52.5 $ 51.1 $ 51.1 ____________________________ (1) The carrying value of long-term debt, including current maturities of long-term debt, is reduced by debt issuance costs of $28.2 million and $24.3 million at March 31, 2019 and December 31, 2018 , respectively. The respective fair values do not factor in debt issuance costs. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summarized Financial Information | Summarized financial information for our reportable segments is shown in the following tables (in millions): Permian North Texas Oklahoma Louisiana Corporate Totals Three Months Ended March 31, 2019 Natural gas sales $ 36.1 $ 50.6 $ 61.6 $ 122.2 $ — $ 270.5 NGL sales (0.2 ) 9.3 8.9 573.1 — 591.1 Crude oil and condensate sales 580.8 — 29.6 58.8 — 669.2 Other — — 0.1 — — 0.1 Product sales 616.7 59.9 100.2 754.1 — 1,530.9 NGL sales—related parties 97.2 28.5 126.1 3.2 (255.0 ) — Crude oil and condensate sales—related parties 4.0 1.0 — — (5.0 ) — Product sales—related parties 101.2 29.5 126.1 3.2 (260.0 ) — Gathering and transportation 10.3 63.6 55.3 17.2 — 146.4 Processing 7.7 21.1 34.1 0.9 — 63.8 NGL services — — — 11.7 — 11.7 Crude services 5.2 — 4.0 13.8 — 23.0 Other services 1.5 0.2 (0.3 ) 0.2 — 1.6 Midstream services 24.7 84.9 93.1 43.8 — 246.5 NGL services—related parties — — — (3.0 ) 3.0 — Crude services—related parties — — 0.3 — (0.3 ) — Midstream services—related parties — — 0.3 (3.0 ) 2.7 — Revenue from contracts with customers 742.6 174.3 319.7 798.1 (257.3 ) 1,777.4 Cost of sales (676.2 ) (73.7 ) (184.2 ) (686.6 ) 257.3 (1,363.4 ) Operating expenses (27.8 ) (25.7 ) (25.4 ) (35.6 ) — (114.5 ) Gain on derivative activity — — — — 1.8 1.8 Segment profit $ 38.6 $ 74.9 $ 110.1 $ 75.9 $ 1.8 $ 301.3 Depreciation and amortization $ (27.9 ) $ (34.3 ) $ (46.1 ) $ (41.8 ) $ (2.0 ) $ (152.1 ) Goodwill $ — $ — $ 190.3 $ — $ — $ 190.3 Capital expenditures $ 95.9 $ 4.3 $ 108.2 $ 41.0 $ 1.6 $ 251.0 Permian North Texas Oklahoma Louisiana Corporate Totals Three Months Ended March 31, 2018 Natural gas sales $ 37.7 $ 45.3 $ 48.1 $ 125.0 $ — $ 256.1 NGL sales 0.5 — 1.9 608.4 — 610.8 Crude oil and condensate sales 577.2 — 21.9 33.2 — 632.3 Product sales 615.4 45.3 71.9 766.6 — 1,499.2 Natural gas sales—related parties — — 0.5 — — 0.5 NGL sales—related parties 83.9 9.0 100.1 5.6 (196.2 ) 2.4 Crude oil and condensate sales—related parties 1.5 0.4 0.4 0.1 (1.7 ) 0.7 Product sales—related parties 85.4 9.4 101.0 5.7 (197.9 ) 3.6 Gathering and transportation 6.2 7.8 15.6 17.6 — 47.2 Processing 3.8 — 9.0 0.6 — 13.4 NGL services — — — 16.6 — 16.6 Crude services — — 0.1 12.8 — 12.9 Other services 1.7 0.3 0.1 — — 2.1 Midstream services 11.7 8.1 24.8 47.6 — 92.2 Gathering and transportation—related parties — 52.6 34.7 — — 87.3 Processing—related parties — 51.6 22.1 — — 73.7 Crude services—related parties 4.3 — 0.7 — — 5.0 Other services—related parties — — 0.2 — — 0.2 Midstream services—related parties 4.3 104.2 57.7 — — 166.2 Revenue from contracts with customers 716.8 167.0 255.4 819.9 (197.9 ) 1,761.2 Cost of sales (674.1 ) (49.9 ) (139.3 ) (716.1 ) 197.9 (1,381.5 ) Operating expenses (23.8 ) (28.4 ) (20.7 ) (36.3 ) — (109.2 ) Gain on derivative activity — — — — 0.5 0.5 Segment profit $ 18.9 $ 88.7 $ 95.4 $ 67.5 $ 0.5 $ 271.0 Depreciation and amortization $ (26.8 ) $ (31.3 ) $ (42.1 ) $ (35.9 ) $ (2.0 ) $ (138.1 ) Goodwill $ 29.3 $ 202.7 $ 190.3 $ — $ — $ 422.3 Capital expenditures $ 63.6 $ 2.5 $ 103.9 $ 10.0 $ 1.2 $ 181.2 |
Reconciliation of Profits Reported to Operating Income (Loss) | The following table reconciles the segment profits reported above to the operating income as reported on the consolidated statements of operations (in millions): Three Months Ended March 31, 2019 2018 Segment profit $ 301.3 $ 271.0 General and administrative expenses (38.6 ) (26.2 ) Loss on disposition of assets — (0.1 ) Depreciation and amortization (152.1 ) (138.1 ) Operating income $ 110.6 $ 106.6 |
Schedule of Assets | The table below represents information about segment assets as of March 31, 2019 and December 31, 2018 (in millions): Segment Identifiable Assets: March 31, 2019 December 31, 2018 Permian $ 2,198.0 $ 2,096.8 North Texas 1,239.5 1,308.2 Oklahoma 3,283.5 3,209.5 Louisiana 2,626.8 2,734.5 Corporate 204.5 222.3 Total identifiable assets $ 9,552.3 $ 9,571.3 |
Other Information (Tables)
Other Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | The following tables present additional detail for other current assets and other current liabilities, which consists of the following (in millions): Other Current Assets: March 31, 2019 December 31, 2018 Natural gas and NGLs inventory $ 39.4 $ 41.3 Secured term loan receivable from contract restructuring, net of discount o f $0.8 and $1.1 23.2 19.4 Prepaid expenses and other 9.2 12.1 Natural gas and NGLs inventory, prepaid expenses, and other $ 71.8 $ 72.8 Other Current Liabilities: March 31, 2019 December 31, 2018 Accrued interest $ 63.2 $ 37.3 Accrued wages and benefits, including taxes 16.9 37.2 Accrued ad valorem taxes 13.1 28.1 Capital expenditure accruals 59.9 50.6 Onerous performance obligations 4.5 9.0 Short-term lease liability 18.1 1.5 Suspense producer payments 18.4 34.6 Other 33.7 48.4 Other current liabilities $ 227.8 $ 246.7 |
General (Details)
General (Details) | Jan. 31, 2019shares | Jan. 25, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Partners capital, common units conversion ratio | 1.15 | 1.15 | |
ENLC | |||
Business Acquisition [Line Items] | |||
Business acquisition, equity interest issued or issuable, number of shares | 55,827,221 | ||
Tall Oak | ENLC | |||
Business Acquisition [Line Items] | |||
Noncontrolling interest, ownership percentage by parent | 16.10% |
Significant Accounting Polici_4
Significant Accounting Policies - Summary of Expected Future Performance Obligations (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Expected gross operating margin | $ 1,019.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Accounting Policies [Abstract] | |
Expected gross operating margin | $ 196.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected gross operating margin, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Accounting Policies [Abstract] | |
Expected gross operating margin | $ 252.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected gross operating margin, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Accounting Policies [Abstract] | |
Expected gross operating margin | $ 104.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected gross operating margin, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Accounting Policies [Abstract] | |
Expected gross operating margin | $ 94.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected gross operating margin, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Accounting Policies [Abstract] | |
Expected gross operating margin | $ 91.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected gross operating margin, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Accounting Policies [Abstract] | |
Expected gross operating margin | $ 279.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected gross operating margin, expected timing of satisfaction, period |
Significant Accounting Polici_5
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | $ 98.2 | |
Operating lease, right-of-use asset | 75.3 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | $ 97.6 | |
Operating lease, right-of-use asset | 75.3 | |
Other liabilities | $ (22.6) | |
Minimum Volume Contract | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Contract with customer, liability | 38.5 | |
Contracts with customers, revenue recognition | $ 3.8 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill | ||
Amortization expense | $ 30.9 | $ 30.8 |
Minimum | ||
Goodwill | ||
Amortization period | 5 years | |
Maximum | ||
Goodwill | ||
Amortization period | 20 years | |
Weighted average | ||
Goodwill | ||
Amortization period | 15 years |
Intangible Assets - Changes in
Intangible Assets - Changes in Carrying Value (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Accumulated Amortization, Beginning balance | $ (422.2) | |
Amortization expense | (30.9) | $ (30.8) |
Accumulated Amortization, Ending balance | (453.1) | |
Net Carrying Amount, Ending balance | 1,342.7 | |
Customer relationships | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross Carrying Amount, Beginning balance | 1,795.8 | |
Accumulated Amortization, Beginning balance | (422.2) | |
Net Carrying Amount, Beginning balance | 1,373.6 | |
Amortization expense | (30.9) | |
Gross Carrying Amount, Ending balance | 1,795.8 | |
Accumulated Amortization, Ending balance | (453.1) | |
Net Carrying Amount, Ending balance | $ 1,342.7 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) $ in Millions | Mar. 31, 2019USD ($) |
Summary of estimated amortization expense | |
2019 (remaining) | $ 92.8 |
2020 | 123.7 |
2021 | 123.7 |
2022 | 123.7 |
2023 | 123.6 |
Thereafter | 755.2 |
Total | $ 1,342.7 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Jul. 18, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transaction | ||||||
Debt instrument, net (discount) premium | $ 4,392.4 | $ 4,343.9 | ||||
Cost of sales | [1] | 1,363.4 | $ 1,381.5 | |||
Accounts payable to related party | 2.6 | 4.3 | ||||
Sales Revenue, Net | Customer Concentration Risk | Devon | ||||||
Related Party Transaction | ||||||
Concentration risk | 9.80% | |||||
Cedar Cove Joint Venture | ||||||
Related Party Transaction | ||||||
Cost of sales | 8.1 | $ 13 | ||||
Accounts receivable balance | 0.4 | 0.7 | ||||
Accounts payable to related party | 2.6 | 4.3 | ||||
GIP | Devon | ||||||
Related Party Transaction | ||||||
Consideration | $ 3,125 | |||||
Tall Oak | ENLC | ||||||
Related Party Transaction | ||||||
Noncontrolling interest, ownership percentage by parent | 16.10% | |||||
ENLC | ||||||
Related Party Transaction | ||||||
Business acquisition, equity interest issued or issuable, number of shares | 55,827,221 | |||||
Intercompany debt | ||||||
Related Party Transaction | ||||||
Debt instrument, net (discount) premium | $ 898.4 | $ 0 | ||||
[1] | Includes related party cost of sales of $8.1 million and $34.1 million for the three months ended March 31, 2019 and 2018, respectively. |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease, liability | $ 98.2 |
Operating lease, right-of-use asset | 75.3 |
Compression and Other Field Equipment | |
Lessee, Lease, Description [Line Items] | |
Operating lease, liability | 19.2 |
Operating lease, right-of-use asset | 23 |
Office Leases | |
Lessee, Lease, Description [Line Items] | |
Operating lease, liability | 64.1 |
Operating lease, right-of-use asset | 42.8 |
Office Equipment | |
Lessee, Lease, Description [Line Items] | |
Operating lease, liability | 0.8 |
Operating lease, right-of-use asset | 0.8 |
Land | |
Lessee, Lease, Description [Line Items] | |
Operating lease, liability | 14.9 |
Operating lease, right-of-use asset | $ 13.2 |
Minimum | Compression and Other Field Equipment | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Maximum | Compression and Other Field Equipment | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 3 years |
Leases - Lease Balances Recorde
Leases - Lease Balances Recorded on the Consolidated Balance Sheet (Details) $ in Millions | Mar. 31, 2019USD ($) |
Finance Lease [Abstract] | |
Property and equipment | $ 5.2 |
Accumulated depreciation | (0.7) |
Property and equipment, net of accumulated depreciation | 4.5 |
Other current liabilities | 0.8 |
Operating leases: | |
Other assets, net | 75.3 |
Other current liabilities | 17.3 |
Other long-term liabilities | $ 80.9 |
Leases - Components of Total Le
Leases - Components of Total Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finance lease expense: | ||
Amortization of right-of-use asset | $ 0.7 | |
Interest on lease liability | 0 | |
Operating Lease Expense [Abstract] | ||
Operating lease expense: | 6.3 | |
Short-term lease expense | 6.9 | |
Variable lease expense | 1.6 | $ 0 |
Total lease expense | $ 15.5 |
Leases - Other Information (Det
Leases - Other Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Supplemental cash flow information: | |
Cash payments for finance leases included in cash flows from financing activities | $ 0.4 |
Cash payments for operating leases included in cash flows from operating activities | 7 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 80.6 |
Other lease information | |
Weighted-average remaining lease term - Finance leases | 6 months |
Weighted-average remaining lease term - Operating leases | 11 years 7 months |
Weighted-average discount rate - Finance leases | 9.30% |
Weighted-average discount rate - Operating leases | 5.20% |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liability (Details) $ in Millions | Mar. 31, 2019USD ($) |
Undiscounted finance lease liability | |
Total | $ 0.8 |
2019 (remaining) | 0.8 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Reduction due to present value | |
Total | 0 |
2019 (remaining) | 0 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Finance lease liability | |
Total | 0.8 |
2019 (remaining) | 0.8 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Undiscounted operating lease liability | |
Total | 139.2 |
2019 (remaining) | 16.5 |
2020 | 16 |
2021 | 12.9 |
2022 | 9.1 |
2023 | 8.9 |
Thereafter | 75.8 |
Reduction due to present value | |
Total | (41) |
2019 (remaining) | (3.6) |
2020 | (4.2) |
2021 | (3.7) |
2022 | (3.4) |
2023 | (3) |
Thereafter | (23.1) |
Operating lease liability | |
Total | 98.2 |
2019 (remaining) | 12.9 |
2020 | 11.8 |
2021 | 9.2 |
2022 | 5.7 |
2023 | 5.9 |
Thereafter | 52.7 |
Total | 99 |
2019 (remaining) | 13.7 |
2020 | 11.8 |
2021 | 9.2 |
2022 | 5.7 |
2023 | 5.9 |
Thereafter | $ 52.7 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 31, 2019 | Dec. 11, 2018 | |
Debt Instrument | |||
Outstanding Principal | $ 4,350,000,000 | $ 4,398,400,000 | |
Premium (Discount) | (6,100,000) | (6,000,000) | |
Long-Term Debt | 4,343,900,000 | 4,392,400,000 | |
Debt issuance costs | (24,300,000) | (28,200,000) | |
Less: Current maturities of long-term debt | (399,800,000) | 0 | |
Long-term debt, net of unamortized issuance cost | 3,919,800,000 | 4,364,200,000 | |
Amortization | 15,300,000 | 10,900,000 | |
Intercompany debt | |||
Debt Instrument | |||
Outstanding Principal | 0 | 898,400,000 | |
Premium (Discount) | 0 | 0 | |
Long-Term Debt | 0 | 898,400,000 | |
Term Loan Due 2021 | |||
Debt Instrument | |||
Outstanding Principal | 0 | $ 850,000,000 | |
Premium (Discount) | 0 | 0 | |
Long-Term Debt | 850,000,000 | $ 0 | |
2.70% Senior unsecured notes due 2019 | |||
Debt Instrument | |||
Stated interest rate | 2.70% | ||
Outstanding Principal | 400,000,000 | $ 400,000,000 | |
Premium (Discount) | 0 | 0 | |
Long-Term Debt | 400,000,000 | 400,000,000 | |
Face amount | $ 400,000,000 | ||
4.40% Senior unsecured notes due 2024 | |||
Debt Instrument | |||
Stated interest rate | 4.40% | ||
Outstanding Principal | 550,000,000 | $ 550,000,000 | |
Premium (Discount) | 1,800,000 | 1,700,000 | |
Long-Term Debt | 551,800,000 | $ 551,700,000 | |
4.15% Senior unsecured notes due 2025 | |||
Debt Instrument | |||
Stated interest rate | 4.15% | ||
Outstanding Principal | 750,000,000 | $ 750,000,000 | |
Premium (Discount) | (900,000) | (800,000) | |
Long-Term Debt | 749,100,000 | $ 749,200,000 | |
4.85% Senior unsecured notes due 2026 | |||
Debt Instrument | |||
Stated interest rate | 4.85% | ||
Outstanding Principal | 500,000,000 | $ 500,000,000 | |
Premium (Discount) | (500,000) | (500,000) | |
Long-Term Debt | 499,500,000 | $ 499,500,000 | |
5.60% Senior unsecured notes due 2044 | |||
Debt Instrument | |||
Stated interest rate | 5.60% | ||
Outstanding Principal | 350,000,000 | $ 350,000,000 | |
Premium (Discount) | (200,000) | (200,000) | |
Long-Term Debt | 349,800,000 | $ 349,800,000 | |
5.05% Senior unsecured notes due 2045 | |||
Debt Instrument | |||
Stated interest rate | 5.05% | ||
Outstanding Principal | 450,000,000 | $ 450,000,000 | |
Premium (Discount) | (6,200,000) | (6,100,000) | |
Long-Term Debt | 443,800,000 | $ 443,900,000 | |
5.45% Senior unsecured notes due 2047 | |||
Debt Instrument | |||
Stated interest rate | 5.45% | ||
Outstanding Principal | 500,000,000 | $ 500,000,000 | |
Premium (Discount) | (100,000) | (100,000) | |
Long-Term Debt | 499,900,000 | 499,900,000 | |
Unsecured Debt | Term Loan Due 2021 | |||
Debt Instrument | |||
Face amount | $ 850,000,000 | $ 850,000,000 | $ 850,000,000 |
Debt instrument, term | 3 years | ||
Effective interest rate | 3.90% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Dec. 18, 2018 | Dec. 11, 2018USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument | ||||
Outstanding principal | $ 4,398,400,000 | $ 4,350,000,000 | ||
Credit Facility | ||||
Debt Instrument | ||||
Additional amount available (not to exceed) | $ 1,750,000,000 | 2,250,000,000 | ||
Line of credit facility, fair value of amount outstanding | 160,000,000 | |||
Outstanding principal | $ 898,400,000 | 0 | ||
Credit Facility | Letter of Credit | ||||
Debt Instrument | ||||
Maximum borrowing capacity | $ 500,000,000 | |||
Letters of credit outstanding, liable, percentage | 105.00% | |||
Credit Facility | Unsecured Debt | ||||
Debt Instrument | ||||
Line of credit facility, consolidated EBITDA to consolidated interest charges, ratio | 2.50 | |||
Ratio of consolidated indebtedness to consolidated EBITDA | 5 | |||
Line of credit facility, consolidated indebtedness to consolidated EBITDA, during an acquisition period, ratio | 5.5 | |||
Credit Facility | Unsecured Debt | Federal Funds | ||||
Debt Instrument | ||||
Variable interest rate | 0.50% | |||
Credit Facility | Unsecured Debt | Eurodollar | ||||
Debt Instrument | ||||
Variable interest rate | 1.00% | |||
Credit Facility | Unsecured Debt | Maximum | LIBOR Rate | ||||
Debt Instrument | ||||
Variable interest rate | 2.00% | |||
Credit Facility | Unsecured Debt | Maximum | Eurodollar | ||||
Debt Instrument | ||||
Variable interest rate | 1.00% | |||
Credit Facility | Unsecured Debt | Minimum | ||||
Debt Instrument | ||||
Conditional acquisition purchase price | $ 50,000,000 | |||
Credit Facility | Unsecured Debt | Minimum | LIBOR Rate | ||||
Debt Instrument | ||||
Variable interest rate | 1.125% | |||
Credit Facility | Unsecured Debt | Minimum | Eurodollar | ||||
Debt Instrument | ||||
Variable interest rate | 0.125% | |||
Term Loan Due 2021 | ||||
Debt Instrument | ||||
Ratio of consolidated indebtedness to consolidated EBITDA | 5 | |||
Outstanding principal | $ 850,000,000 | $ 0 | ||
Term Loan Due 2021 | Maximum | ||||
Debt Instrument | ||||
Ratio of consolidated indebtedness to consolidated EBITDA | 5.5 | |||
Conditional acquisition purchase price | $ 50,000,000 | |||
Term Loan Due 2021 | Unsecured Debt | ||||
Debt Instrument | ||||
Face amount | $ 850,000,000 | 850,000,000 | $ 850,000,000 | |
Term Loan Due 2021 | Line of Credit | ||||
Debt Instrument | ||||
Line of credit facility, consolidated EBITDA to consolidated interest charges, ratio | 2.50 | |||
Term Loan Due 2021 | Line of Credit | Federal Funds | ||||
Debt Instrument | ||||
Variable interest rate | 0.50% | |||
Term Loan Due 2021 | Line of Credit | Eurodollar | ||||
Debt Instrument | ||||
Variable interest rate | 1.00% | |||
Term Loan Due 2021 | Line of Credit | Maximum | LIBOR Rate | ||||
Debt Instrument | ||||
Variable interest rate | 1.75% | |||
Term Loan Due 2021 | Line of Credit | Maximum | Eurodollar | ||||
Debt Instrument | ||||
Variable interest rate | 0.75% | |||
Term Loan Due 2021 | Line of Credit | Minimum | LIBOR Rate | ||||
Debt Instrument | ||||
Variable interest rate | 1.00% | |||
Term Loan Due 2021 | Line of Credit | Minimum | Eurodollar | ||||
Debt Instrument | ||||
Variable interest rate | 0.00% | |||
ENLC | Term Loan Due 2021 | ||||
Debt Instrument | ||||
Outstanding principal | $ 850,000,000 |
Partners' Capital - Narrative a
Partners' Capital - Narrative and Distribution Activity (Details) $ / shares in Units, $ in Millions | Jan. 25, 2019 | Jan. 24, 2019$ / shares | Mar. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares |
Partners' capital | ||||||
Partners capital, common units conversion ratio | 1.15 | 1.15 | ||||
General Partner Interest | Incentive Distribution Level 1 | ||||||
Partners' capital | ||||||
Incentive distribution for general partner | 13.00% | |||||
Incentive distribution, conditional distribution per unit (in dollars per share) | $ 0.25 | |||||
General Partner Interest | Incentive Distribution Level 2 | ||||||
Partners' capital | ||||||
Incentive distribution for general partner | 23.00% | |||||
Incentive distribution, conditional distribution per unit (in dollars per share) | $ 0.3125 | |||||
General Partner Interest | Incentive Distribution Level 3 | ||||||
Partners' capital | ||||||
Incentive distribution for general partner | 48.00% | |||||
Incentive distribution, conditional distribution per unit (in dollars per share) | $ 0.375 | |||||
Series B Preferred Unitholders | ||||||
Partners' capital | ||||||
Preferred interest in net income attributable to ENLK | $ | $ (18.6) | $ (21.9) | ||||
Distribution paid as additional Series B Preferred Units (in shares) | shares | 147,887 | 425,785 | 416,657 | 413,658 | ||
Cash distribution | $ | $ 16.7 | $ 16.5 | $ 16.2 | $ 16 | ||
Series C Preferred Unitholders | ||||||
Partners' capital | ||||||
Preferred interest in net income attributable to ENLK | $ | $ (6) | $ (6) | ||||
Limited Partner | ||||||
Partners' capital | ||||||
Distribution made to limited partner, distributions paid, per unit (in dollars per share) | $ 0.39 | |||||
Limited Partner | Common Units | ||||||
Partners' capital | ||||||
Distribution declared per unit (in dollars per share) | $ 0.39 | $ 0.39 | $ 0.39 | |||
Limited Partner | Series B Preferred Unitholders | ||||||
Partners' capital | ||||||
Distribution declared per unit (in dollars per share) | $ 0.28125 | |||||
Annual rate on issue price payable in kind | 0.25% | 0.25% | ||||
Shares issued (in dollars per share) | $ 15 | |||||
Preferred interest in net income attributable to ENLK | $ | $ 18.6 | $ 21.9 | ||||
Limited Partner | Series C Preferred Unitholders | ||||||
Partners' capital | ||||||
Preferred interest in net income attributable to ENLK | $ | $ 6 | $ 6 | ||||
Dividend rate, percentage | 6.00% | |||||
Partners capital account, redemption price | $ 1,000 | |||||
LIBOR Rate | Limited Partner | Series C Preferred Unitholders | ||||||
Partners' capital | ||||||
Partners' capital account, distributions, variable floating rate percentage | 4.11% |
Partners' Capital - Net Income
Partners' Capital - Net Income Allocated to the General Partner (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Incentive | ||
General partner interest in net income (loss) | $ (9.3) | $ 14.8 |
General Partner Interest | ||
Incentive | ||
Income allocation for incentive distributions | 0 | 14.8 |
Unit-based compensation attributable to ENLC’s restricted and performance units | (12.1) | (4.4) |
General partner share of net income | 0.4 | 0.2 |
General partner interest in EOGP acquisition | 2.4 | 4.2 |
General partner interest in net income (loss) | $ (9.3) | $ 14.8 |
Investment in Unconsolidated _3
Investment in Unconsolidated Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments | |||
Distributions | $ 2.5 | $ 6 | |
Equity in income (loss) | 5.3 | 3 | |
Total investment in unconsolidated affiliates | $ 82.9 | $ 80.1 | |
GCF | |||
Schedule of Equity Method Investments | |||
Ownership interest | 38.75% | ||
Distributions | $ 2.2 | 5.7 | |
Equity in income (loss) | 5.7 | 4.6 | |
Total investment in unconsolidated affiliates | $ 45.4 | 41.9 | |
Cedar Cove JV | |||
Schedule of Equity Method Investments | |||
Ownership interest | 30.00% | ||
Distributions | $ 0.3 | 0.3 | |
Equity in income (loss) | (0.4) | $ (1.6) | |
Total investment in unconsolidated affiliates | $ 37.5 | $ 38.2 |
Employee Incentive Plans - Amou
Employee Incentive Plans - Amounts Recognized in Consolidated Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Compensation allocation | ||
Total unit-based compensation expense | $ 10.9 | $ 5.1 |
Operating Expense | ||
Compensation allocation | ||
Total unit-based compensation expense | 0.3 | 2 |
Cost of unit-based compensation charged to operating expense | ||
Compensation allocation | ||
Total unit-based compensation expense | $ 10.6 | $ 3.1 |
Employee Incentive Plans - Rest
Employee Incentive Plans - Restricted and Performance Awards (Details) $ / shares in Units, $ in Millions | Jan. 25, 2019 | Jul. 23, 2018 | Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2018USD ($) |
Weighted Average Grant-Date Fair Value | |||||
Partners capital, common units conversion ratio | 1.15 | 1.15 | |||
Grant date fair value assumptions | |||||
Beginning TSR price (in dollars per share) | $ / shares | $ 10.92 | ||||
Risk-free interest rate | 2.42% | ||||
Volatility factor | 33.86% | ||||
Distribution yield | 9.70% | ||||
Unvested restricted units | |||||
Number of Units | |||||
Non-vested, beginning of period (in shares) | 2,556,270 | ||||
Vested (in shares) | (722,853) | ||||
Forfeited (in shares) | (4,490) | ||||
Converted to ENLC (in shares) | (1,828,927) | ||||
Non-vested, end of period (in shares) | 0 | 0 | |||
Weighted Average Grant-Date Fair Value | |||||
Non-vested, beginning of period (in dollars per share) | $ / shares | $ 14.43 | ||||
Vested (in dollars per share) | $ / shares | 10.02 | ||||
Forfeited (in dollars per share) | $ / shares | 11.93 | ||||
Converted to ENLC (in dollars per share) | $ / shares | 16.11 | ||||
Non-vested, end of period (in dollars per share) | $ / shares | $ 0 | $ 0 | |||
Units withheld for payroll taxes (in shares) | 249,201 | ||||
Partners capital, common units conversion ratio | 1.15 | ||||
Aggregate intrinsic value of units vested | $ | $ 8 | $ 8.7 | |||
Fair value of units vested | $ | $ 7.2 | 12.8 | |||
Unvested restricted units | ENLC | |||||
Number of Units | |||||
Non-vested, beginning of period (in shares) | 2,425,867 | ||||
Granted (in shares) | 1,770,170 | ||||
Vested (in shares) | (420,842) | (1,214,354) | |||
Forfeited (in shares) | (54,090) | ||||
Converted to ENLC (in shares) | 2,103,266 | ||||
Non-vested, end of period (in shares) | 5,030,859 | 5,030,859 | |||
Aggregate intrinsic value, end of period (in dollars per share) | $ | $ 64.3 | $ 64.3 | |||
Weighted Average Grant-Date Fair Value | |||||
Non-vested, beginning of period (in dollars per share) | $ / shares | $ 14.62 | ||||
Granted (in dollars per share) | $ / shares | 11.45 | ||||
Vested (in dollars per share) | $ / shares | 10.35 | ||||
Forfeited (in dollars per share) | $ / shares | 11.71 | ||||
Converted to ENLC (in dollars per share) | $ / shares | 14.01 | ||||
Non-vested, end of period (in dollars per share) | $ / shares | $ 14.31 | $ 14.31 | |||
Units withheld for payroll taxes (in shares) | 409,384 | ||||
Aggregate intrinsic value of units vested | $ | $ 12.4 | 8.9 | |||
Fair value of units vested | $ | $ 4.8 | $ 12.6 | 13.1 | ||
Vesting period | 3 years | ||||
Unrecognized compensation cost related to non-vested restricted incentive units | $ | $ 44.6 | $ 44.6 | |||
Unrecognized compensation costs, weighted average period for recognition | 2 years | ||||
Performance Units | |||||
Number of Units | |||||
Non-vested, beginning of period (in shares) | 451,669 | ||||
Vested (in shares) | (161,410) | ||||
Converted to ENLC (in shares) | (290,259) | ||||
Non-vested, end of period (in shares) | 0 | 0 | |||
Weighted Average Grant-Date Fair Value | |||||
Non-vested, beginning of period (in dollars per share) | $ / shares | $ 17.74 | ||||
Vested (in dollars per share) | $ / shares | 10.54 | ||||
Converted to ENLC (in dollars per share) | $ / shares | 28.31 | ||||
Non-vested, end of period (in dollars per share) | $ / shares | $ 0 | $ 0 | |||
Partners capital, common units conversion ratio | 1.15 | ||||
Aggregate intrinsic value of units vested | $ | $ 2.1 | 2 | |||
Fair value of units vested | $ | $ 1.7 | 4.1 | |||
Vesting period | 3 years | ||||
Additional unrecognized compensation expense related to non-vested restricted incentive units | $ | $ 2.3 | $ 2.3 | |||
Performance Units | ENLC | |||||
Number of Units | |||||
Non-vested, beginning of period (in shares) | 418,149 | ||||
Granted (in shares) | 907,337 | ||||
Vested (in shares) | (161,286) | ||||
Converted to ENLC (in shares) | 333,798 | ||||
Non-vested, end of period (in shares) | 1,497,998 | 1,497,998 | |||
Aggregate intrinsic value, end of period (in dollars per share) | $ | $ 19.1 | $ 19.1 | |||
Weighted Average Grant-Date Fair Value | |||||
Non-vested, beginning of period (in dollars per share) | $ / shares | $ 19.15 | ||||
Granted (in dollars per share) | $ / shares | 13.53 | ||||
Vested (in dollars per share) | $ / shares | 11.71 | ||||
Converted to ENLC (in dollars per share) | $ / shares | 25.84 | ||||
Non-vested, end of period (in dollars per share) | $ / shares | $ 18.04 | $ 18.04 | |||
Units withheld for payroll taxes (in shares) | 62,219 | ||||
Aggregate intrinsic value of units vested | $ | $ 1.8 | 1.9 | |||
Fair value of units vested | $ | $ 1.9 | $ 4.2 | |||
Vesting period | 3 years | ||||
Unrecognized compensation cost related to non-vested restricted incentive units | $ | $ 16.6 | $ 16.6 | |||
Unrecognized compensation costs, weighted average period for recognition | 2 years 2 months | ||||
Performance Units | EnLink Midstream Partners, LP | |||||
Weighted Average Grant-Date Fair Value | |||||
Units withheld for payroll taxes (in shares) | 62,403 | ||||
Additional unrecognized compensation expense related to non-vested restricted incentive units | $ | 0.7 | $ 0.7 | |||
Performance Units | Minimum | |||||
Weighted Average Grant-Date Fair Value | |||||
Percent of units vesting | 0.00% | 0.00% | |||
Performance Units | Maximum | |||||
Weighted Average Grant-Date Fair Value | |||||
Percent of units vesting | 100.00% | 200.00% | |||
ENLC Performance Shares | |||||
Weighted Average Grant-Date Fair Value | |||||
Additional unrecognized compensation expense related to non-vested restricted incentive units | $ | $ 2.1 | $ 2.1 |
Employee Incentive Plans - Upda
Employee Incentive Plans - Update (Details) | Mar. 31, 2019 |
Cash Flow Performance Unit | Below Threshold | |
Equity compensation | |
Share-based compensation arrangement by share-based payment award, performance target percentage | 143.00% |
Share-based compensation arrangement by share-based payment award, performance vesting percentage | 0.00% |
Cash Flow Performance Unit | Threshold | |
Equity compensation | |
Share-based compensation arrangement by share-based payment award, performance target percentage | 143.00% |
Share-based compensation arrangement by share-based payment award, performance vesting percentage | 50.00% |
Cash Flow Performance Unit | Target | |
Equity compensation | |
Share-based compensation arrangement by share-based payment award, performance target percentage | 155.00% |
Share-based compensation arrangement by share-based payment award, performance vesting percentage | 100.00% |
Cash Flow Performance Unit | Maximum | |
Equity compensation | |
Share-based compensation arrangement by share-based payment award, performance target percentage | 172.00% |
Share-based compensation arrangement by share-based payment award, performance vesting percentage | 200.00% |
TSR Performance Unit | Below Threshold | |
Equity compensation | |
Share-based compensation arrangement by share-based payment award, performance target percentage | 25.00% |
Share-based compensation arrangement by share-based payment award, performance vesting percentage | 0.00% |
TSR Performance Unit | Threshold | |
Equity compensation | |
Share-based compensation arrangement by share-based payment award, performance target percentage | 25.00% |
Share-based compensation arrangement by share-based payment award, performance vesting percentage | 50.00% |
TSR Performance Unit | Target | |
Equity compensation | |
Share-based compensation arrangement by share-based payment award, performance target percentage | 50.00% |
Share-based compensation arrangement by share-based payment award, performance vesting percentage | 100.00% |
TSR Performance Unit | Maximum | |
Equity compensation | |
Share-based compensation arrangement by share-based payment award, performance target percentage | 75.00% |
Share-based compensation arrangement by share-based payment award, performance vesting percentage | 200.00% |
Derivatives - Interest Rate Swa
Derivatives - Interest Rate Swaps (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | May 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Settlement gain (loss) | $ (2.1) | $ (2.1) | $ (2.2) |
Interest income (expense) expected to be reclassified out of accumulated other comprehensive income (loss) over the next twelve months | $ (0.1) |
Derivatives - Components of Gai
Derivatives - Components of Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments | ||
Gain on derivative activity | $ 1.8 | $ 0.5 |
Commodity Swaps | ||
Derivative Instruments | ||
Change in fair value of derivatives | (2) | (3.5) |
Realized gain on derivatives | 3.8 | 4 |
Gain on derivative activity | $ 1.8 | $ 0.5 |
Derivatives - Assets and Liabil
Derivatives - Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fair value of derivative assets—current | $ 8.7 | $ 28.6 |
Fair value of derivative assets | 4.6 | 4.1 |
Fair value of derivative liabilities—current | (6.6) | (21.8) |
Fair value of derivative liabilities—long-term | (0.2) | (2.4) |
Net fair value of derivatives | $ 6.5 | $ 8.5 |
Derivatives - Commodities (Deta
Derivatives - Commodities (Details) gal in Millions, MMBbls in Millions, MMBTU in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)MMBTUgalMMBbls | Dec. 31, 2018USD ($) | |
Derivative | ||
Fair Value | $ 6.5 | $ 8.5 |
Possible reduction in maximum loss if counterparties fail to perform | 7.5 | |
Commodity | ||
Derivative | ||
Fair Value | 6.5 | |
Maximum loss if counterparties fail to perform | $ 13.3 | |
Commodity | NGL | Short | ||
Derivative | ||
Notional amount (in gallons and mmbls) | gal | 13.8 | |
Fair Value | $ 1.2 | |
Commodity | NGL | Long | ||
Derivative | ||
Notional amount (in gallons and mmbls) | gal | 2.6 | |
Fair Value | $ (0.1) | |
Commodity | Natural Gas | Short | ||
Derivative | ||
Notional amount (in mmbtu) | MMBTU | 3 | |
Fair Value | $ 0 | |
Commodity | Natural Gas | Long | ||
Derivative | ||
Notional amount (in mmbtu) | MMBTU | 4.6 | |
Fair Value | $ (1.1) | |
Commodity | Crude and Condensate | Short | ||
Derivative | ||
Notional amount (in gallons and mmbls) | MMBbls | 12.7 | |
Fair Value | $ 9.7 | |
Commodity | Crude and Condensate | Long | ||
Derivative | ||
Notional amount (in gallons and mmbls) | MMBbls | 1.5 | |
Fair Value | $ (3.2) |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Measured at fair value | ||
Fair Value | $ 6.5 | $ 8.5 |
Level 2 | Commodity Swaps | Recurring | ||
Measured at fair value | ||
Fair Value | $ 6.5 | $ 8.5 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Debt issuance costs | $ 28.2 | $ 24.3 |
Senior unsecured notes | $ 3,500 | $ 3,500 |
Minimum | ||
Fair Value | ||
Stated interest rate | 2.70% | 2.70% |
Maximum | ||
Fair Value | ||
Stated interest rate | 5.60% | 5.60% |
Carrying Value | ||
Fair Value | ||
Long-term debt, including current maturities of long-term debt | $ 4,364.2 | $ 4,319.6 |
Secured term loan receivable | 52.5 | 51.1 |
Fair Value | ||
Fair Value | ||
Long-term debt, including current maturities of long-term debt | 4,210 | 3,953.6 |
Secured term loan receivable | $ 52.5 | $ 51.1 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of segments | 5 |
Segment Information - Financial
Segment Information - Financial Information and Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Segment Reporting | ||||
Revenue from contracts with customers | $ 1,777.4 | $ 1,761.2 | ||
Cost of sales | [1] | (1,363.4) | (1,381.5) | |
Operating expenses | (114.5) | (109.2) | ||
Gain on derivative activity | 1.8 | 0.5 | ||
Segment profit (loss) | 301.3 | 271 | ||
Depreciation and amortization | (152.1) | (138.1) | ||
Goodwill | 190.3 | 422.3 | $ 190.3 | |
Capital expenditures | 251 | 181.2 | ||
Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (257.3) | (197.9) | ||
Cost of sales | 257.3 | 197.9 | ||
Operating expenses | 0 | 0 | ||
Gain on derivative activity | 1.8 | 0.5 | ||
Segment profit (loss) | 1.8 | 0.5 | ||
Depreciation and amortization | (2) | (2) | ||
Goodwill | 0 | 0 | ||
Capital expenditures | 1.6 | 1.2 | ||
Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 742.6 | 716.8 | ||
Cost of sales | (676.2) | (674.1) | ||
Operating expenses | (27.8) | (23.8) | ||
Gain on derivative activity | 0 | 0 | ||
Segment profit (loss) | 38.6 | 18.9 | ||
Depreciation and amortization | (27.9) | (26.8) | ||
Goodwill | 0 | 29.3 | ||
Capital expenditures | 95.9 | 63.6 | ||
North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 174.3 | 167 | ||
Cost of sales | (73.7) | (49.9) | ||
Operating expenses | (25.7) | (28.4) | ||
Gain on derivative activity | 0 | 0 | ||
Segment profit (loss) | 74.9 | 88.7 | ||
Depreciation and amortization | (34.3) | (31.3) | ||
Goodwill | 0 | 202.7 | ||
Capital expenditures | 4.3 | 2.5 | ||
Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 319.7 | 255.4 | ||
Cost of sales | (184.2) | (139.3) | ||
Operating expenses | (25.4) | (20.7) | ||
Gain on derivative activity | 0 | 0 | ||
Segment profit (loss) | 110.1 | 95.4 | ||
Depreciation and amortization | (46.1) | (42.1) | ||
Goodwill | 190.3 | 190.3 | ||
Capital expenditures | 108.2 | 103.9 | ||
Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 798.1 | 819.9 | ||
Cost of sales | (686.6) | (716.1) | ||
Operating expenses | (35.6) | (36.3) | ||
Gain on derivative activity | 0 | 0 | ||
Segment profit (loss) | 75.9 | 67.5 | ||
Depreciation and amortization | (41.8) | (35.9) | ||
Goodwill | 0 | 0 | ||
Capital expenditures | 41 | 10 | ||
Product sales | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 1,530.9 | 1,499.2 | ||
Product sales | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Product sales | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 616.7 | 615.4 | ||
Product sales | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 59.9 | 45.3 | ||
Product sales | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 100.2 | 71.9 | ||
Product sales | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 754.1 | 766.6 | ||
Product sales, Natural gas sales | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 270.5 | 256.1 | ||
Product sales, Natural gas sales | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Product sales, Natural gas sales | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 36.1 | 37.7 | ||
Product sales, Natural gas sales | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 50.6 | 45.3 | ||
Product sales, Natural gas sales | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 61.6 | 48.1 | ||
Product sales, Natural gas sales | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 122.2 | 125 | ||
Product sales, NGL sales | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 591.1 | 610.8 | ||
Product sales, NGL sales | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Product sales, NGL sales | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (0.2) | 0.5 | ||
Product sales, NGL sales | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 9.3 | 0 | ||
Product sales, NGL sales | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 8.9 | 1.9 | ||
Product sales, NGL sales | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 573.1 | 608.4 | ||
Product sales, Crude oil and condensate sales | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 669.2 | 632.3 | ||
Product sales, Crude oil and condensate sales | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Product sales, Crude oil and condensate sales | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 580.8 | 577.2 | ||
Product sales, Crude oil and condensate sales | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Product sales, Crude oil and condensate sales | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 29.6 | 21.9 | ||
Product sales, Crude oil and condensate sales | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 58.8 | 33.2 | ||
Product Sales, Other | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.1 | |||
Product Sales, Other | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product Sales, Other | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product Sales, Other | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product Sales, Other | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.1 | |||
Product Sales, Other | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product sales—related parties | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 3.6 | ||
Product sales—related parties | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (260) | (197.9) | ||
Product sales—related parties | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 101.2 | 85.4 | ||
Product sales—related parties | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 29.5 | 9.4 | ||
Product sales—related parties | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 126.1 | 101 | ||
Product sales—related parties | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 3.2 | 5.7 | ||
Product sales, Natural gas sales, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.5 | |||
Product sales, Natural gas sales, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product sales, Natural gas sales, related party | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product sales, Natural gas sales, related party | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product sales, Natural gas sales, related party | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.5 | |||
Product sales, Natural gas sales, related party | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product sales, NGL sales, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 2.4 | ||
Product sales, NGL sales, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (255) | (196.2) | ||
Product sales, NGL sales, related party | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 97.2 | 83.9 | ||
Product sales, NGL sales, related party | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 28.5 | 9 | ||
Product sales, NGL sales, related party | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 126.1 | 100.1 | ||
Product sales, NGL sales, related party | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 3.2 | 5.6 | ||
Product sales, Crude oil and condensate sales, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0.7 | ||
Product sales, Crude oil and condensate sales, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (5) | (1.7) | ||
Product sales, Crude oil and condensate sales, related party | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 4 | 1.5 | ||
Product sales, Crude oil and condensate sales, related party | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 1 | 0.4 | ||
Product sales, Crude oil and condensate sales, related party | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0.4 | ||
Product sales, Crude oil and condensate sales, related party | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0.1 | ||
Midstream services | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 246.5 | 92.2 | ||
Midstream services | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream services | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 24.7 | 11.7 | ||
Midstream services | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 84.9 | 8.1 | ||
Midstream services | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 93.1 | 24.8 | ||
Midstream services | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 43.8 | 47.6 | ||
Midstream services, Gathering and transportation | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 146.4 | 47.2 | ||
Midstream services, Gathering and transportation | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream services, Gathering and transportation | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 10.3 | 6.2 | ||
Midstream services, Gathering and transportation | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 63.6 | 7.8 | ||
Midstream services, Gathering and transportation | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 55.3 | 15.6 | ||
Midstream services, Gathering and transportation | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 17.2 | 17.6 | ||
Midstream services, Processing | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 63.8 | 13.4 | ||
Midstream services, Processing | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream services, Processing | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 7.7 | 3.8 | ||
Midstream services, Processing | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 21.1 | 0 | ||
Midstream services, Processing | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 34.1 | 9 | ||
Midstream services, Processing | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.9 | 0.6 | ||
Midstream services, NGL services | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 11.7 | 16.6 | ||
Midstream services, NGL services | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream services, NGL services | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream services, NGL services | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream services, NGL services | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream services, NGL services | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 11.7 | 16.6 | ||
Midstream services, Crude services | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 23 | 12.9 | ||
Midstream services, Crude services | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream services, Crude services | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 5.2 | 0 | ||
Midstream services, Crude services | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream services, Crude services | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 4 | 0.1 | ||
Midstream services, Crude services | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 13.8 | 12.8 | ||
Midstream services, Other services | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 1.6 | 2.1 | ||
Midstream services, Other services | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream services, Other services | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 1.5 | 1.7 | ||
Midstream services, Other services | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.2 | 0.3 | ||
Midstream services, Other services | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (0.3) | 0.1 | ||
Midstream services, Other services | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.2 | 0 | ||
Midstream services—related parties | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 166.2 | ||
Midstream services—related parties | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 2.7 | 0 | ||
Midstream services—related parties | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 4.3 | ||
Midstream services—related parties | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 104.2 | ||
Midstream services—related parties | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.3 | 57.7 | ||
Midstream services—related parties | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (3) | 0 | ||
Midstream services, Gathering and transportation, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 87.3 | |||
Midstream services, Gathering and transportation, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream services, Gathering and transportation, related party | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream services, Gathering and transportation, related party | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 52.6 | |||
Midstream services, Gathering and transportation, related party | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 34.7 | |||
Midstream services, Gathering and transportation, related party | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream Services, NGL Services, Related Parties | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream Services, NGL Services, Related Parties | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 3 | |||
Midstream Services, NGL Services, Related Parties | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream Services, NGL Services, Related Parties | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream Services, NGL Services, Related Parties | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream Services, NGL Services, Related Parties | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (3) | |||
Midstream services, Processing, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 73.7 | |||
Midstream services, Processing, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream services, Processing, related party | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream services, Processing, related party | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 51.6 | |||
Midstream services, Processing, related party | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 22.1 | |||
Midstream services, Processing, related party | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream services, Crude services, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 5 | ||
Midstream services, Crude services, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (0.3) | 0 | ||
Midstream services, Crude services, related party | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 4.3 | ||
Midstream services, Crude services, related party | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream services, Crude services, related party | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.3 | 0.7 | ||
Midstream services, Crude services, related party | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | $ 0 | 0 | ||
Midstream services, Other services, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.2 | |||
Midstream services, Other services, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream services, Other services, related party | Permian | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream services, Other services, related party | North Texas | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Midstream services, Other services, related party | Oklahoma | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.2 | |||
Midstream services, Other services, related party | Louisiana | Operating Segments | ||||
Segment Reporting | ||||
Revenue from contracts with customers | $ 0 | |||
[1] | Includes related party cost of sales of $8.1 million and $34.1 million for the three months ended March 31, 2019 and 2018, respectively. |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting | ||
Assets | $ 9,552.3 | $ 9,571.3 |
Operating Segments | Permian | ||
Segment Reporting | ||
Assets | 2,198 | 2,096.8 |
Operating Segments | North Texas | ||
Segment Reporting | ||
Assets | 1,239.5 | 1,308.2 |
Operating Segments | Oklahoma | ||
Segment Reporting | ||
Assets | 3,283.5 | 3,209.5 |
Operating Segments | Louisiana | ||
Segment Reporting | ||
Assets | 2,626.8 | 2,734.5 |
Corporate | ||
Segment Reporting | ||
Assets | $ 204.5 | $ 222.3 |
Segment Information - Reconcili
Segment Information - Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting [Abstract] | ||
Segment profit (loss) | $ 301.3 | $ 271 |
General and administrative expenses | (38.6) | (26.2) |
Loss on disposition of assets | 0 | (0.1) |
Depreciation and amortization | (152.1) | (138.1) |
Operating income | $ 110.6 | $ 106.6 |
Other Information (Details)
Other Information (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other Current Assets: | ||
Natural gas and NGLs inventory | $ 39.4 | $ 41.3 |
Secured term loan receivable from contract restructuring, net of discount of $0.8 and $1.1 | 23.2 | 19.4 |
Secured term loan receivable, discount | 0.8 | 1.1 |
Prepaid expenses and other | 9.2 | 12.1 |
Natural gas and NGLs inventory, prepaid expenses, and other | 71.8 | 72.8 |
Other Current Liabilities: | ||
Accrued interest | 63.2 | 37.3 |
Accrued wages and benefits, including taxes | 16.9 | 37.2 |
Accrued ad valorem taxes | 13.1 | 28.1 |
Capital expenditure accruals | 59.9 | 50.6 |
Onerous performance obligations | 4.5 | 9 |
Short-term lease liability | 18.1 | 1.5 |
Suspense producer payments | 18.4 | 34.6 |
Other | 33.7 | 48.4 |
Other current liabilities | $ 227.8 | $ 246.7 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - USD ($) | Apr. 09, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 30, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||||
Proceeds from borrowings | $ 1,368,400,000 | $ 795,000,000 | |||
Secured term loan receivable from contract restructuring, net of discount of $0.8 and $1.1 | 23,200,000 | $ 19,400,000 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Proceeds from borrowings | $ 496,500,000 | ||||
Secured term loan receivable from contract restructuring, net of discount of $0.8 and $1.1 | $ 58,000,000 | ||||
Secured term loan receivable, overdue payment | $ 9,750,000 | ||||
Term Loan Due 2029 | Unsecured Debt | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Face amount | $ 500,000,000 | ||||
Stated interest rate | 5.375% | ||||
Debt instrument, percentage price of debt issued | 100.00% | ||||
2.70% Senior unsecured notes due 2019 | |||||
Subsequent Event [Line Items] | |||||
Face amount | $ 400,000,000 | ||||
Stated interest rate | 2.70% | ||||
Fair Value | |||||
Subsequent Event [Line Items] | |||||
Secured term loan receivable | $ 52,500,000 | $ 51,100,000 |
Uncategorized Items - enlc-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 300,000 |
General Partner [Member] | ||
Partners' Capital Account, Units | us-gaap_PartnersCapitalAccountUnits | 1,600,000 |
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | us-gaap_PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest | $ 231,200,000 |
Noncontrolling Interest [Member] | ||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | us-gaap_PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest | 309,800,000 |
Redeemable Noncontrolling Interest [Member] | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | us-gaap_RedeemableNoncontrollingInterestEquityCarryingAmount | $ 9,300,000 |
Series C Preferred Stock [Member] | Limited Partner [Member] | ||
Partners' Capital Account, Units | us-gaap_PartnersCapitalAccountUnits | 400,000 |
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | us-gaap_PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest | $ 395,100,000 |
Series B Preferred Stock [Member] | Limited Partner [Member] | ||
Partners' Capital Account, Units | us-gaap_PartnersCapitalAccountUnits | 58,700,000 |
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | us-gaap_PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest | $ 889,300,000 |
Common Unit [Member] | Limited Partner [Member] | ||
Partners' Capital Account, Units | us-gaap_PartnersCapitalAccountUnits | 353,100,000 |
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | us-gaap_PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest | $ 2,461,100,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 300,000 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | us-gaap_PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest | $ (2,100,000) |