Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36340 | |
Entity Registrant Name | ENLINK MIDSTREAM PARTNERS, LP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 16-1616605 | |
Entity Address, Address Line One | 1722 Routh St., Suite 1300 | |
Entity Address, City or Town | Dallas, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 953-9500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 144,358,720 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Amendment Flag | false | |
Entity Central Index Key | 0001179060 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 52 | $ 77.4 |
Accounts receivable: | ||
Trade, net of allowance for bad debt of $0.5 and $0.5, respectively | 82 | 36.2 |
Accrued revenue and other | 304.7 | 460.1 |
Related party | 22.1 | 18.1 |
Fair value of derivative assets | 9.9 | 12.9 |
Other current assets | 58.4 | 56.9 |
Total current assets | 529.1 | 661.6 |
Property and equipment, net of accumulated depreciation of $3,654.7 and $3,418.6, respectively | 6,828.7 | 7,081.3 |
Intangible assets, net of accumulated amortization of $607.1 and $545.9, respectively | 1,187.1 | 1,249.9 |
Investment in unconsolidated affiliates | 42.1 | 43.1 |
Fair value of derivative assets | 5.8 | 4.3 |
Other assets, net | 88.3 | 94.4 |
Total assets | 8,681.1 | 9,134.6 |
Current liabilities: | ||
Accounts payable and drafts payable | 49.4 | 70.6 |
Accounts payable to related party | 0.4 | 1.1 |
Accrued gas, NGLs, condensate, and crude oil purchases | 188.8 | 354.8 |
Fair value of derivative liabilities | 31.3 | 14.4 |
Other current liabilities | 156.7 | 201.7 |
Total current liabilities | 426.6 | 642.6 |
Long-term debt, including $1,748.7 and $1,700.0 from related parties, respectively | 4,749 | 4,764.3 |
Asset retirement obligations | 15.9 | 15.5 |
Other long-term liabilities | 84.8 | 90.8 |
Deferred tax liability | 45.3 | 44.5 |
Fair value of derivative liabilities | 9.4 | 6.8 |
Redeemable non-controlling interest | 0 | 5.2 |
Partners’ equity: | ||
Common unitholders (144,358,720 units issued and outstanding) | 1,440.6 | 1,681.2 |
General partner interest (1,594,974 equivalent units outstanding) | 215.4 | 216.6 |
Accumulated other comprehensive loss | (29.6) | (14.5) |
Non-controlling interest | 432.9 | 391.4 |
Total partners’ equity | 3,350.1 | 3,564.9 |
Total liabilities and partners’ equity | 8,681.1 | 9,134.6 |
Series B Preferred Unitholders | ||
Partners’ equity: | ||
Preferred unitholders | 895.7 | 895.1 |
Series C Preferred Unitholders | ||
Partners’ equity: | ||
Preferred unitholders | $ 395.1 | $ 395.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Allowance for bad debt | $ 0.5 | $ 0.5 |
Accumulated depreciation | 3,654.7 | 3,418.6 |
Accumulated amortization | 607.1 | 545.9 |
Long term debt due from affiliates | $ 1,748.7 | $ 1,700 |
Partners’ equity: | ||
Common units issued (in shares) | 144,358,720 | 144,358,720 |
Common units outstanding (in shares) | 144,358,720 | 144,358,720 |
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) | 59,897,920 | 59,599,550 |
Preferred unit outstanding (in shares) | 59,897,920 | 59,599,550 |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Revenue from contracts with customers | $ 767.3 | $ 1,703.1 | $ 1,904.2 | $ 3,480.5 |
Gain (loss) on derivative activity | (22.4) | 6.9 | (3.2) | 8.7 |
Total revenues | 744.9 | 1,710 | 1,901 | 3,489.2 |
Operating costs and expenses: | ||||
Cost of sales | 397.7 | 1,300.1 | 1,153 | 2,663.5 |
Operating expenses | 88.1 | 117.9 | 188.8 | 232.4 |
General and administrative | 23.4 | 31.9 | 54.3 | 70.5 |
Loss on disposition of assets | 5.2 | 0.1 | 4.6 | 0.1 |
Depreciation and amortization | 158.2 | 153.7 | 321 | 305.8 |
Impairments | 1.5 | 0 | 169.9 | 0 |
Loss on secured term loan receivable | 0 | 52.9 | 0 | 52.9 |
Total operating costs and expenses | 674.1 | 1,656.6 | 1,891.6 | 3,325.2 |
Operating income | 70.8 | 53.4 | 9.4 | 164 |
Other income (expense): | ||||
Interest expense, net of interest income | (55.2) | (54.3) | (110.8) | (103.6) |
Gain on extinguishment of debt | 26.7 | 0 | 32 | 0 |
Income (loss) from unconsolidated affiliates | (0.7) | 4.7 | 1 | 10 |
Other income | 0 | 0.3 | 0 | 0.3 |
Total other expense | (29.2) | (49.3) | (77.8) | (93.3) |
Income (loss) before non-controlling interest and income taxes | 41.6 | 4.1 | (68.4) | 70.7 |
Income tax benefit (expense) | (1) | 0.7 | (1.5) | (0.2) |
Net income (loss) | 40.6 | 4.8 | (69.9) | 70.5 |
Net income attributable to non-controlling interest | 2.5 | 0.7 | 5.9 | 3.6 |
Net income (loss) attributable to ENLK | 38.1 | 4.1 | (75.8) | 66.9 |
Product sales | ||||
Revenues: | ||||
Revenue from contracts with customers | 532.6 | 1,450.4 | 1,425.5 | 2,981.3 |
Midstream services | ||||
Revenues: | ||||
Revenue from contracts with customers | $ 234.7 | $ 252.7 | $ 478.7 | $ 499.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 40.6 | $ 4.8 | $ (69.9) | $ 70.5 |
Gain (loss) on designated cash flow hedge | 2 | (13.5) | (15.1) | (13.5) |
Comprehensive income (loss) | 42.6 | (8.7) | (85) | 57 |
Comprehensive income attributable to non-controlling interest | 2.5 | 0.7 | 5.9 | 3.6 |
Comprehensive income (loss) attributable to ENLK | $ 40.1 | $ (9.4) | $ (90.9) | $ 53.4 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partners' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Non-Controlling Interest | Non-Controlling InterestCumulative Effect, Period of Adoption, Adjusted Balance | Redeemable Noncontrolling Interest | Redeemable Noncontrolling InterestCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjusted Balance | General Partner Interest | General Partner InterestCumulative Effect, Period of Adoption, Adjusted Balance | Common UnitsLimited Partner | Common UnitsLimited PartnerCumulative Effect, Period of Adoption, Adjustment | Common UnitsLimited PartnerCumulative Effect, Period of Adoption, Adjusted Balance | Series B Preferred UnitsLimited Partner | Series B Preferred UnitsLimited PartnerCumulative Effect, Period of Adoption, Adjusted Balance | Series C Preferred UnitsLimited Partner | Series C Preferred UnitsLimited PartnerCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance at Dec. 31, 2018 | $ 4,284.1 | $ 0.3 | $ 4,284.4 | $ 309.8 | $ 309.8 | $ (2.1) | $ (2.1) | $ 231.2 | $ 231.2 | $ 2,460.8 | $ 0.3 | $ 2,461.1 | $ 889.3 | $ 889.3 | $ 395.1 | $ 395.1 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 1.6 | 1.6 | 353.1 | 353.1 | 58.7 | 58.7 | 0.4 | 0.4 | ||||||||||
Increase (Decrease) in Partners' Capital | ||||||||||||||||||
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 | |||||||||||||||
Issuance of common units (in shares) | 55.8 | |||||||||||||||||
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 | $ 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 | |||||||||||||||||
Beginning balance at Dec. 31, 2018 | 4,284.1 | $ 0.3 | $ 4,284.4 | 309.8 | $ 309.8 | (2.1) | $ (2.1) | $ 231.2 | $ 231.2 | $ 2,460.8 | $ 0.3 | $ 2,461.1 | $ 889.3 | $ 889.3 | $ 395.1 | $ 395.1 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 1.6 | 1.6 | 353.1 | 353.1 | 58.7 | 58.7 | 0.4 | 0.4 | ||||||||||
Increase (Decrease) in Partners' Capital | ||||||||||||||||||
Gain (loss) on designated cash flow hedge | (13.5) | |||||||||||||||||
Ending balance at Jun. 30, 2019 | 4,057.1 | 345.9 | (15.6) | $ 218.2 | $ 2,220.3 | $ 893.2 | $ 395.1 | |||||||||||
Ending balance (in shares) at Jun. 30, 2019 | 1.6 | 144.4 | 59.3 | 0.4 | ||||||||||||||
Beginning balance at Dec. 31, 2018 | 9.3 | $ 9.3 | ||||||||||||||||
Increase (Decrease) in Temporary Equity | ||||||||||||||||||
Redemption of non-controlling interest | 0 | |||||||||||||||||
Ending balance at Jun. 30, 2019 | 5.8 | |||||||||||||||||
Beginning balance at Mar. 31, 2019 | 4,200.8 | 322.1 | (2.1) | $ 218.4 | $ 2,369.9 | $ 891.4 | $ 401.1 | |||||||||||
Beginning balance (in shares) at Mar. 31, 2019 | 1.6 | 144.4 | 59.2 | 0.4 | ||||||||||||||
Increase (Decrease) in Partners' Capital | ||||||||||||||||||
Unit-based compensation | 6.4 | $ 6.4 | $ 0 | |||||||||||||||
Distributions | (172.3) | (6.4) | 0 | (137.2) | $ (16.7) | $ (12) | ||||||||||||
Distributions (in shares) | 0.1 | |||||||||||||||||
Contributions from non-controlling interests | 29.5 | 29.5 | ||||||||||||||||
Fair value adjustment related to redeemable non-controlling interest | 1.4 | (1.4) | 1.4 | |||||||||||||||
Gain (loss) on designated cash flow hedge | (13.5) | (13.5) | ||||||||||||||||
Net income (loss) | 4.8 | 0.7 | (6.6) | (13.8) | $ 18.5 | 6 | ||||||||||||
Ending balance at Jun. 30, 2019 | 4,057.1 | 345.9 | (15.6) | $ 218.2 | $ 2,220.3 | $ 893.2 | $ 395.1 | |||||||||||
Ending balance (in shares) at Jun. 30, 2019 | 1.6 | 144.4 | 59.3 | 0.4 | ||||||||||||||
Beginning balance at Mar. 31, 2019 | 7.2 | |||||||||||||||||
Increase (Decrease) in Temporary Equity | ||||||||||||||||||
Fair value adjustment related to redeemable non-controlling interest | 1.4 | (1.4) | $ 1.4 | |||||||||||||||
Ending balance at Jun. 30, 2019 | 5.8 | |||||||||||||||||
Beginning balance at Dec. 31, 2019 | 3,564.9 | 391.4 | (14.5) | $ 216.6 | $ 1,681.2 | $ 895.1 | $ 395.1 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 1.6 | 144.4 | 59.6 | 0.4 | ||||||||||||||
Increase (Decrease) in Partners' Capital | ||||||||||||||||||
Unit-based compensation | 12.3 | $ 12.3 | ||||||||||||||||
Distributions | (117.7) | (7.6) | (0.3) | 0 | $ (93.3) | $ (16.8) | ||||||||||||
Distributions (in shares) | 0.1 | |||||||||||||||||
Contributions from non-controlling interests | 37.1 | 37.1 | ||||||||||||||||
Fair value adjustment related to redeemable non-controlling interest | 0.9 | (0.9) | 0.9 | |||||||||||||||
Gain (loss) on designated cash flow hedge | (17.1) | (17.1) | ||||||||||||||||
Net income (loss) | (110.5) | 3.4 | (13.7) | (123.2) | $ 17 | $ 6 | ||||||||||||
Ending balance at Mar. 31, 2020 | 3,369.9 | 424.3 | (31.6) | $ 215.2 | $ 1,465.6 | $ 895.3 | $ 401.1 | |||||||||||
Ending balance (in shares) at Mar. 31, 2020 | 1.6 | 144.4 | 59.7 | 0.4 | ||||||||||||||
Beginning balance at Dec. 31, 2019 | 5.2 | |||||||||||||||||
Increase (Decrease) in Temporary Equity | ||||||||||||||||||
Redemption of non-controlling interest | (4) | |||||||||||||||||
Fair value adjustment related to redeemable non-controlling interest | 0.9 | (0.9) | $ 0.9 | |||||||||||||||
Ending balance at Mar. 31, 2020 | 0 | |||||||||||||||||
Beginning balance at Dec. 31, 2019 | 3,564.9 | 391.4 | (14.5) | $ 216.6 | $ 1,681.2 | $ 895.1 | $ 395.1 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 1.6 | 144.4 | 59.6 | 0.4 | ||||||||||||||
Increase (Decrease) in Partners' Capital | ||||||||||||||||||
Gain (loss) on designated cash flow hedge | (15.1) | |||||||||||||||||
Ending balance at Jun. 30, 2020 | 3,350.1 | 432.9 | (29.6) | $ 215.4 | $ 1,440.6 | $ 895.7 | $ 395.1 | |||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 1.6 | 144.4 | 59.9 | 0.4 | ||||||||||||||
Beginning balance at Dec. 31, 2019 | 5.2 | |||||||||||||||||
Increase (Decrease) in Temporary Equity | ||||||||||||||||||
Redemption of non-controlling interest | 4 | |||||||||||||||||
Ending balance at Jun. 30, 2020 | 0 | |||||||||||||||||
Beginning balance at Mar. 31, 2020 | 3,369.9 | 424.3 | (31.6) | $ 215.2 | $ 1,465.6 | $ 895.3 | $ 401.1 | |||||||||||
Beginning balance (in shares) at Mar. 31, 2020 | 1.6 | 144.4 | 59.7 | 0.4 | ||||||||||||||
Increase (Decrease) in Partners' Capital | ||||||||||||||||||
Unit-based compensation | 6.8 | $ 6.8 | ||||||||||||||||
Distributions | (82.4) | (7.1) | 0 | $ (46.5) | $ (16.8) | $ (12) | ||||||||||||
Distributions (in shares) | 0.2 | |||||||||||||||||
Contributions from non-controlling interests | 13.2 | 13.2 | ||||||||||||||||
Gain (loss) on designated cash flow hedge | 2 | 2 | ||||||||||||||||
Net income (loss) | 40.6 | 2.5 | (6.6) | 21.5 | $ 17.2 | 6 | ||||||||||||
Ending balance at Jun. 30, 2020 | $ 3,350.1 | $ 432.9 | $ (29.6) | $ 215.4 | $ 1,440.6 | $ 895.7 | $ 395.1 | |||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 1.6 | 144.4 | 59.9 | 0.4 | ||||||||||||||
Beginning balance at Mar. 31, 2020 | 0 | |||||||||||||||||
Increase (Decrease) in Temporary Equity | ||||||||||||||||||
Redemption of non-controlling interest | (4) | |||||||||||||||||
Ending balance at Jun. 30, 2020 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (69.9) | $ 70.5 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Impairments | 169.9 | 0 |
Depreciation and amortization | 321 | 305.8 |
Loss on secured term loan receivable | 0 | 52.9 |
Non-cash unit-based compensation | 16.2 | 18.9 |
(Gain) loss on derivatives recognized in net income (loss) | 3.2 | (8.7) |
Cash settlements on derivatives | 2.8 | 4.9 |
Gain on extinguishment of debt | (32) | 0 |
Amortization of debt issue costs, net discount (premium) of notes | 2.2 | 2.9 |
Distribution of earnings from unconsolidated affiliates | 1.2 | 9.7 |
Income from unconsolidated affiliates | (1) | (10) |
Other operating activities | 4.9 | (4.2) |
Changes in assets and liabilities: | ||
Accounts receivable, accrued revenue, and other | 105.7 | 259.7 |
Natural gas and NGLs inventory, prepaid expenses, and other | 8.6 | (7.8) |
Accounts payable, accrued product purchases, and other accrued liabilities | (220.3) | (179) |
Net cash provided by operating activities | 312.5 | 515.6 |
Cash flows from investing activities: | ||
Additions to property and equipment | (203.6) | (428.4) |
Other investing activities | 1.6 | 1.5 |
Net cash used in investing activities | (202) | (426.9) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 490 | 3,058.5 |
Payments on borrowings | (476) | (2,870) |
Debt financing costs | 0 | (9.7) |
Distributions to non-controlling interests | (15) | (12.7) |
Contributions by non-controlling interests | 50.3 | 45.2 |
Distributions to common unitholders and to general partner | (139.8) | (292.2) |
Other financing activities | 0.2 | (3.6) |
Net cash used in financing activities | (135.9) | (129.7) |
Net decrease in cash and cash equivalents | (25.4) | (41) |
Cash and cash equivalents, beginning of period | 77.4 | 99.5 |
Cash and cash equivalents, end of period | 52 | 58.5 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 106.6 | 103.4 |
Cash paid for income taxes | 0.2 | 1.2 |
Non-cash investing activities: | ||
Non-cash accrual of property and equipment | (19.6) | (5.8) |
Right-of-use assets obtained in exchange for operating lease liabilities | 4.8 | 95.2 |
Non-cash financing activities: | ||
Redemption of non-controlling interest | (4) | 0 |
Series B Preferred Unitholders | ||
Cash flows from financing activities: | ||
Distributions to Series B Preferred Units | (33.6) | (33.2) |
Series C Preferred Unitholders | ||
Cash flows from financing activities: | ||
Distributions to Series B Preferred Units | $ (12) | $ (12) |
General
General | 6 Months Ended |
Jun. 30, 2020 | |
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. 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. 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. c. Current Market Environment On March 11, 2020, the World Health Organization declared the ongoing coronavirus (COVID-19) outbreak a pandemic and recommended containment and mitigation measures worldwide. The pandemic has now reached every region of the globe and has resulted in widespread adverse impacts on the global economy, on the energy industry as a whole and on midstream companies, and on our customers, suppliers, and other parties with whom we have business relations. The pandemic and related travel and operational restrictions, as well as business closures and curtailed consumer activity, have resulted in a reduction in global demand for condensate, natural gas, and NGLs and especially crude oil. While reductions in global demand for natural gas and NGLs were never as severe as for crude oil and the demand for crude oil has recovered from the steepest drops in April and May, global demand for energy is still reduced as of the date of this report from levels before the pandemic in mid-February. The decline in demand, coupled with the failure of OPEC+ to quickly agree on oil production cuts, resulted in a decline in the market price for these commodities, most severely for crude oil. Although OPEC+ agreed to production cuts in April, extended these cuts through July, and are expected to continue the production cuts beyond July, although at a more moderate level, and although United States oil producers have also curtailed their drilling programs, these cuts have not been enough to fully offset demand loss attributable to the COVID-19 pandemic and market prices remain lower than prior to the pandemic. As a result of the supply/demand imbalance, reduced commodity prices, and an uncertain timeline for recovery, oil and natural gas producers, including many of our customers, have curtailed their current drilling and production activity, including in some cases by shutting-in production, as well as reducing their plans for future drilling and production activity. As a result of these decreases in producer activity, we have experienced reduced volumes gathered, processed, fractionated, and transported on our assets in some of the regions that supply our systems. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) Significant Accounting Policies a. Basis of Presentation The accompanying consolidated financial statements have been 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, 2019. Certain reclassifications were made to the financial statements for the prior period to conform to current period presentation. The effect of these reclassifications had no impact on previously reported partners’ equity or net income (loss). 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 and six months ended June 30, 2020, we had contractual commitments of $41.4 million and $83.2 million under our MVC contracts, respectively, and recorded $13.4 million and $25.2 million of revenue due to volume shortfalls, respectively. MVC and Firm Transportation Commitments (in millions) (1) 2020 (remaining) $ 126.9 2021 115.1 2022 99.8 2023 90.5 2024 77.0 Thereafter 143.3 Total $ 652.6 ____________________________ (1) Amounts do not represent expected shortfall under these commitments. c. Property and Equipment Impairment Review. In accordance with ASC 360 , Property, Plant, and Equipment , we evaluate long-lived assets of identifiable business activities for potential impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The carrying amount of a long-lived asset is not recoverable when it exceeds the undiscounted sum of the future cash flows expected to result from the use and eventual disposition of the asset. Estimates of expected future cash flows represent management’s best estimate based on reasonable and supportable assumptions. When the carrying amount of a long-lived asset is not recoverable, an impairment is recognized equal to the excess of the asset’s carrying value over its fair value, which is based on inputs that are not observable in the market, and thus represent Level 3 inputs. For the three months ended June 30, 2020, we recognized a $1.5 million impairment on property and equipment related to cancelled projects. For the six months ended June 30, 2020, we recognized a $168.0 million impairment on property and equipment related to a portion of our Louisiana reporting segment because the carrying amounts were not recoverable based on our expected future cash flows, and a $1.9 million impairment related to certain cancelled projects. d. Redeemable Non-Controlling Interest Non-controlling interests that contain an option for the non-controlling interest holder to require us to purchase such interests for cash are considered to be redeemable non-controlling interests because the redemption feature is not deemed to be a freestanding financial instrument and because the redemption is not solely within our control. Redeemable non-controlling interests are not considered to be a component of partners’ equity and are reported as temporary equity in the mezzanine section on the consolidated balance sheets. The amount recorded as a redeemable non-controlling interest at each balance sheet date is the greater of the redemption value and the carrying value of the redeemable non-controlling interest (the initial carrying value increased or decreased for the non-controlling interest holder’s share of net income or loss and distributions). When the redemption feature is exercised the redemption value of the non-controlling interest is reclassified to a liability on the consolidated balance sheets. During the first quarter of 2020, a non-controlling interest holder in one of our non-wholly owned subsidiaries exercised its option to require us to purchase its remaining interest. We have recorded an estimated liability of $4.0 million related to the redemption of the non-controlling interest on the consolidated balance sheet as of June 30, 2020, but we have not yet agreed to a redemption value with the non-controlling interest holder. e. Adopted Accounting Standards Effective January 1, 2020, we adopted ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Topic 350): Internal-Use Software. 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. For the three and six months ended June 30, 2020, we did not capitalize any cloud computing costs. However, to the extent future 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 statements of operations, rather than “Depreciation and amortization.” Effective January 1, 2020, we adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The updates in ASU 2016-13 provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Following the adoption of ASU 2016-13, we record an allowance for doubtful accounts based on our expectation of future losses. Because our receivables are typically paid within 30 days, and because we closely monitor the credit-worthiness of all our counterparties, adopting ASU 2016-13 did not have a material effect on our financial statements. However, in the event we foresee further or sustained deterioration in the current market environment, or other factors indicating an increased likelihood of defaults by our customers, we may recognize additional losses. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | (3) Intangible Assets The following table represents our change in carrying value of intangible assets (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Six Months Ended June 30, 2020 Customer relationships, beginning of period $ 1,795.8 $ (545.9) $ 1,249.9 Amortization expense — (61.8) (61.8) Retirements (1) (1.6) 0.6 (1.0) Customer relationships, end of period $ 1,794.2 $ (607.1) $ 1,187.1 ____________________________ (1) Intangible assets retired as a result of the disposition of certain non-core 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 10 to 20 years. The weighted average amortization period is 15.0 years. Amortization expense was $30.9 million and $31.0 million for the three months ended June 30, 2020 and 2019, respectively, and $61.8 million and $61.9 million for the six months ended June 30, 2020 and 2019, respectively. The following table summarizes our estimated aggregate amortization expense for the next five years and thereafter (in millions): 2020 (remaining) $ 61.7 2021 123.4 2022 123.4 2023 123.4 2024 123.4 Thereafter 631.8 Total $ 1,187.1 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (4) Related Party Transactions a. Transactions with ENLC Related Party Debt. Related party debt includes borrowings under the Consolidated Credit Facility, the Term Loan, and ENLC’s 5.375% senior unsecured notes to fund the operations and growth capital expenditures of ENLK through a related party arrangement with ENLC. See “Note 5—Long-Term Debt” for more information on this arrangement. We had accounts receivable balances related to transactions with ENLC of $22.1 million and $18.1 million as of June 30, 2020 and December 31, 2019, respectively. b. Transactions with Cedar Cove JV For the three and six months ended June 30, 2020, we recorded cost of sales of $1.3 million and $4.2 million, respectively, and for the three and six months ended June 30, 2019, we recorded cost of sales of $5.8 million and $13.9 million, respectively, related to our purchase of residue gas and NGLs from the Cedar Cove JV subsequent to processing at its Central Oklahoma processing facilities. Additionally, we had accounts payable balances related to transactions with the Cedar Cove JV of $0.4 million and $1.1 million at June 30, 2020 and December 31, 2019, respectively. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (5) Long-Term Debt As of June 30, 2020 and December 31, 2019, long-term debt consisted of the following (in millions): June 30, 2020 December 31, 2019 Outstanding Principal Premium (Discount) Long-Term Debt Outstanding Principal Premium (Discount) Long-Term Debt Related party debt $ 1,748.7 $ — $ 1,748.7 $ 1,700.0 $ — $ 1,700.0 4.40% Senior unsecured notes due 2024 521.8 1.2 523.0 550.0 1.5 551.5 4.15% Senior unsecured notes due 2025 720.8 (0.6) 720.2 750.0 (0.7) 749.3 4.85% Senior unsecured notes due 2026 491.0 (0.4) 490.6 500.0 (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 (5.8) 444.2 450.0 (5.9) 444.1 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 $ 4,782.3 $ (5.9) 4,776.4 $ 4,800.0 $ (5.9) 4,794.1 Debt issuance cost (1) (27.4) (29.8) Long-term debt, net of unamortized issuance cost $ 4,749.0 $ 4,764.3 ____________________________ (1) Net of amortization of $12.6 million and $10.9 million at June 30, 2020 and December 31, 2019, respectively. Related Party Debt Related party debt includes borrowings under the Consolidated Credit Facility, the Term Loan, and ENLC’s 5.375% senior unsecured notes to fund the operations and growth capital expenditures of ENLK through a related party arrangement with ENLC. Interest charged to ENLK for borrowings made through the related party arrangement will be the same as interest charged to ENLC on borrowings under the Consolidated Credit Facility, the Term Loan, and ENLC’s 5.375% senior unsecured notes. As of June 30, 2020 and December 31, 2019, $1.7 billion of related party debt is included in “Long-term debt” in the consolidated balance sheet related to these borrowings. The indebtedness under ENLC's 5.375% senior unsecured notes due June 1, 2029, the Consolidated Credit Facility, and the Term Loan was incurred by ENLC but is guaranteed by ENLK. Therefore, the covenants in the agreements governing such indebtedness described below affect balances owed by ENLK on the related party debt. Consolidated Credit Facility The Consolidated Credit Facility 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 ($400.0 million as of June 30, 2020), and 105% of the outstanding letters of credit under the Consolidated Credit Facility ($23.0 million as of June 30, 2020). The obligations under the Consolidated Credit Facility are unsecured. The Consolidated Credit Facility includes provisions 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 (LIBOR) 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 June 30, 2020, ENLC was in compliance with and expects to be in compliance with the financial 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 $400.0 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. 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 and the outstanding balance becomes due, 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 June 30, 2020. 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 2.5 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 LIBOR 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 June 30, 2020, ENLC was in compliance with and expects to be in compliance with the financial 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. Senior Unsecured Notes Repurchases For the three and six months ended June 30, 2020, we and ENLC made aggregate payments to partially repurchase the 2024, 2025, 2026, and 2029 Notes in open market transactions. Activity related to the partial repurchases of our outstanding debt consisted of the following (in millions): Three Months Ended Six Months Ended Debt repurchased $ 57.2 $ 67.7 Aggregate payments (30.8) (36.0) Net discount on repurchased debt (0.3) (0.3) Accrued interest on repurchased debt 0.6 0.6 Gain on extinguishment of debt $ 26.7 $ 32.0 |
Partners' Capital
Partners' Capital | 6 Months Ended |
Jun. 30, 2020 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital | (6) Partners’ Capital a. Series B Preferred Units Income is allocated to the Series B Preferred Units in an amount equal to the quarterly distribution with respect to the period earned. A summary of the distribution activity relating to the Series B Preferred Units during the six months ended June 30, 2020 and 2019 is provided below: Declaration period Distribution paid as additional Series B Preferred Units Cash Distribution (in millions) Date paid/payable 2020 Fourth Quarter of 2019 148,999 $ 16.8 February 13, 2020 First Quarter of 2020 149,371 $ 16.8 May 13, 2020 Second Quarter of 2020 149,745 $ 16.8 August 13, 2020 2019 Fourth Quarter of 2018 425,785 $ 16.5 February 13, 2019 First Quarter of 2019 147,887 $ 16.7 May 14, 2019 Second Quarter of 2019 148,257 $ 17.1 August 13, 2019 b. Series C Preferred Units We distributed $12.0 million to holders of Series C Preferred Units during the three and six months ended June 30, 2020 and 2019, respectively. c. Common Unit Distributions On February 13, 2019, we paid $0.39 per ENLK common unit related to the fourth quarter of 2018. Subsequent to the closing of the Merger, we no longer have publicly held common units. ENLC owns all of our outstanding common units and we make quarterly distributions to ENLC related to its ownership of our common units. d. Allocation of ENLK Income The net income (loss) allocated to our general partner is as follows (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Unit-based compensation attributable to ENLC’s restricted and performance units $ (6.8) $ (6.4) $ (19.1) $ (18.5) General partner share of net income (loss) 0.2 (0.2) (1.2) 0.2 General partner interest in EOGP acquisition — — — 2.4 General partner interest in net income (loss) $ (6.6) $ (6.6) $ (20.3) $ (15.9) |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliates | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliates | (7) Investment in Unconsolidated Affiliates As of June 30, 2020, our unconsolidated investments consisted of a 38.75% ownership in GCF and a 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 Six Months Ended 2020 2019 2020 2019 GCF Distributions $ — $ 7.4 $ 1.6 $ 9.6 Equity in income $ 0.3 $ 5.2 $ 2.1 $ 10.9 Cedar Cove JV Distributions $ 0.2 $ 0.2 $ 0.4 $ 0.5 Equity in loss $ (1.0) $ (0.5) $ (1.1) $ (0.9) Total Distributions $ 0.2 $ 7.6 $ 2.0 $ 10.1 Equity in income (loss) $ (0.7) $ 4.7 $ 1.0 $ 10.0 The following table shows the balances related to our investment in unconsolidated affiliates as of June 30, 2020 and December 31, 2019 (in millions): June 30, 2020 December 31, 2019 GCF $ 39.7 $ 39.2 Cedar Cove JV 2.4 3.9 Total investment in unconsolidated affiliates $ 42.1 $ 43.1 |
Employee Incentive Plans
Employee Incentive Plans | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Incentive Plans | (8) Employee Incentive Plans a. Long-Term Incentive Plans We account for unit-based compensation in accordance with 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 directors, officers, and employees of our general partner and the managing member of ENLC is recorded by ENLK since ENLC has no substantial or managed operating activities other than its interests in ENLK. Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Cost of unit-based compensation charged to operating expense $ 2.0 $ 2.1 $ 4.2 $ 2.4 Cost of unit-based compensation charged to general and administrative expense 5.4 5.9 12.0 16.5 Total unit-based compensation expense $ 7.4 $ 8.0 $ 16.2 $ 18.9 b. ENLC Restricted Incentive Units ENLC restricted incentive units were 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 six months ended June 30, 2020 is provided below: Six Months Ended ENLC Restricted Incentive Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 4,063,605 $ 13.85 Granted (1) 4,673,848 5.55 Vested (1)(2) (2,413,687) 10.35 Forfeited (478,304) 8.39 Non-vested, end of period 5,845,462 $ 9.11 Aggregate intrinsic value, end of period (in millions) $ 14.3 ____________________________ (1) Restricted incentive units typically vest at the end of three years. In February 2020, ENLC granted 1,144,842 restricted incentive units with a fair value of $5.2 million to officers and certain employees as bonus payments for 2019, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. (2) Vested units included 851,940 units withheld for payroll taxes paid on behalf of employees. 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 and six months ended June 30, 2020 and 2019 is provided below (in millions): Three Months Ended Six Months Ended ENLC Restricted Incentive Units: 2020 2019 2020 2019 Aggregate intrinsic value of units vested $ 0.8 $ 0.5 $ 10.9 $ 12.9 Fair value of units vested $ 6.1 $ 0.5 $ 25.0 $ 13.1 As of June 30, 2020, there was $29.4 million of unrecognized compensation cost related to non-vested ENLC restricted incentive units. This cost is expected to be recognized over a weighted-average period of 1.8 years. c. ENLC 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 such 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 following table presents a summary of the performance units: Six Months Ended ENLC Performance Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 1,317,856 $ 14.22 Granted 1,161,986 7.32 Vested (1) (178,403) 30.56 Forfeited (37,646) 11.81 Non-vested, end of period 2,263,793 $ 9.43 Aggregate intrinsic value, end of period (in millions) $ 5.5 ____________________________ (1) Vested units included 67,775 units withheld for payroll taxes paid on behalf of employees. 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 and six months ended June 30, 2020 and 2019 is provided below (in millions). Three Months Ended Six Months Ended ENLC Performance Units: 2020 2019 2020 2019 Aggregate intrinsic value of units vested $ — $ — $ 0.9 $ 1.8 Fair value of units vested $ 0.5 $ — $ 5.5 $ 1.9 As of June 30, 2020, there was $14.5 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 1.7 years. The following table presents a summary of the grant-date fair value assumptions by performance unit grant date: ENLC Performance Units: January 2020 March 2020 Grant-Date Fair Value $ 7.69 $ 1.13 Beginning TSR price $ 6.13 $ 1.25 Risk-free interest rate 1.62 % 0.42 % Volatility factor 37.00 % 51.00 % d. ENLK Restricted Incentive Units 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 six months ended June 30, 2019 is provided below (in millions). Since the Legacy ENLK Awards converted into ENLC unit-based awards as a result of the Merger, no additional restricted incentive units will vest as ENLK units under the GP Plan (such restricted incentive units, as converted, are eligible to vest as ENLC units) and no additional expense will be recognized after January 25, 2019 under the GP Plan. Six Months Ended ENLK Restricted Incentive Units: 2019 Aggregate intrinsic value of units vested $ 8.0 Fair value of units vested $ 7.2 e. ENLK Performance Units 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 six months ended June 30, 2019 is provided below (in millions). Since the Legacy ENLK Awards converted into ENLC unit-based awards as a result of the Merger, no additional performance units will vest as ENLK units under the GP Plan (such performance units, as converted, are eligible to vest as ENLC units) and no additional expense will be recognized after January 25, 2019 under the GP Plan. Six Months Ended ENLK Performance Units: 2019 Aggregate intrinsic value of units vested $ 2.1 Fair value of units vested $ 1.7 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | (9) Derivatives Interest Rate Swaps In April 2019, we entered into an $850.0 million interest rate swap to manage the interest rate risk associated with our floating-rate, LIBOR-based borrowings. Under this arrangement, we pay a fixed interest rate of 2.28% in exchange for LIBOR-based variable interest through December 2021. There was no ineffectiveness related to this hedge. The gain (loss) on designated cash flow hedge related to changes in the fair value of our interest rate swaps were as follows (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Gain (loss) on designated cash flow hedge $ 2.0 $ (13.5) $ (15.1) $ (13.5) The interest expense, recognized from accumulated other comprehensive loss from the monthly settlement of our interest rate swaps, included in our consolidated income statement were as follows (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Interest expense (income) $ 3.7 $ (0.3) $ 5.0 $ (0.3) We expect to recognize an additional $18.4 million of interest expense out of accumulated other comprehensive loss over the next twelve months. The fair value of our interest rate swaps included in our consolidated balance sheets were as follows (in millions): June 30, 2020 December 31, 2019 Fair value of derivative liabilities—current $ (18.3) $ (5.6) Fair value of derivative liabilities—long-term (9.3) (6.8) Net fair value of interest rate swaps $ (27.6) $ (12.4) Commodity Swaps The components of gain (loss) on derivative activity in the consolidated statements of operations related to commodity swaps are (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Change in fair value of derivatives $ (18.8) $ 7.2 $ (5.8) $ 5.2 Realized gain (loss) on derivatives (3.6) (0.3) 2.6 3.5 Gain (loss) on derivative activity $ (22.4) $ 6.9 $ (3.2) $ 8.7 The fair value of derivative assets and liabilities related to commodity swaps are as follows (in millions): June 30, 2020 December 31, 2019 Fair value of derivative assets—current $ 9.9 $ 12.9 Fair value of derivative assets—long-term 5.8 4.3 Fair value of derivative liabilities—current (13.0) (8.8) Fair value of derivative liabilities—long-term (0.1) — Net fair value of commodity swaps $ 2.6 $ 8.4 Set forth below are the summarized notional volumes and fair values of all instruments related to commodity swaps that we held for price risk management purposes and the related physical offsets at June 30, 2020 (in millions). The remaining term of the contracts extend no later than December 2022. June 30, 2020 Commodity Instruments Unit Volume Net Fair Value NGL (short contracts) Swaps Gallons (172.5) $ (5.7) NGL (long contracts) Swaps Gallons 3.4 (0.1) Natural gas (short contracts) Swaps MMBtu (21.6) (0.2) Natural gas (long contracts) Swaps MMBtu 15.9 (0.6) Crude and condensate (short contracts) Swaps MMbbls (10.7) 7.2 Crude and condensate (long contracts) Swaps MMbbls 0.6 2.0 Total fair value of commodity swaps $ 2.6 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (10) Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions): Level 2 June 30, 2020 December 31, 2019 Interest rate swaps (1) $ (27.6) $ (12.4) Commodity swaps (2) $ 2.6 $ 8.4 ____________________________ (1) The fair values of the interest rate swaps are estimated based on the difference between expected cash flows calculated at the contracted interest rates and the expected cash flows using observable benchmarks for the variable interest rates. (2) The fair values of commodity swaps 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): June 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Long-term debt (1) $ 4,749.0 $ 3,791.1 $ 4,764.3 $ 4,444.2 ____________________________ (1) The carrying value of long-term debt is reduced by debt issuance costs of $27.4 million and $29.8 million as of June 30, 2020 and December 31, 2019, 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. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | (11) Segment Information 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 June 30, 2020 Natural gas sales $ 32.4 $ 14.6 $ 28.8 $ 68.6 $ — $ 144.4 NGL sales (0.1) — 0.5 280.9 — 281.3 Crude oil and condensate sales 87.0 — 5.0 14.9 — 106.9 Product sales 119.3 14.6 34.3 364.4 — 532.6 NGL sales—related parties 59.5 13.9 56.0 3.2 (132.5) 0.1 Crude oil and condensate sales—related parties — 0.4 0.1 — (0.6) (0.1) Product sales—related parties 59.5 14.3 56.1 3.2 (133.1) — Gathering and transportation 13.1 44.2 52.5 11.5 — 121.3 Processing 7.5 33.0 32.1 0.6 — 73.2 NGL services — 0.1 — 18.6 — 18.7 Crude services 5.0 — 4.6 11.0 — 20.6 Other services 0.2 0.2 0.1 0.4 — 0.9 Midstream services 25.8 77.5 89.3 42.1 — 234.7 Crude services—related parties — — 0.1 — (0.1) — Midstream services—related parties — — 0.1 — (0.1) — Revenue from contracts with customers 204.6 106.4 179.8 409.7 (133.2) 767.3 Cost of sales (138.4) (18.9) (61.1) (312.5) 133.2 (397.7) Operating expenses (22.7) (18.5) (19.4) (27.5) — (88.1) Loss on derivative activity — — — — (22.4) (22.4) Segment profit (loss) $ 43.5 $ 69.0 $ 99.3 $ 69.7 $ (22.4) $ 259.1 Depreciation and amortization $ (31.0) $ (36.4) $ (54.1) $ (34.6) $ (2.1) $ (158.2) Impairments $ — $ — $ — $ (1.5) $ — $ (1.5) Capital expenditures $ 46.9 $ 3.0 $ 3.0 $ 15.6 $ 0.7 $ 69.2 Permian North Texas Oklahoma Louisiana Corporate Totals Three Months Ended June 30, 2019 Natural gas sales $ (1.0) $ 31.9 $ 60.3 $ 102.6 $ — $ 193.8 NGL sales 0.8 8.7 4.3 498.8 — 512.6 Crude oil and condensate sales 632.0 — 28.6 83.5 — 744.1 Other — — (0.1) — — (0.1) Product sales 631.8 40.6 93.1 684.9 — 1,450.4 Natural gas sales—related parties 0.4 0.3 — — (0.7) — NGL sales—related parties 76.4 22.2 104.6 5.3 (208.5) — Crude oil and condensate sales—related parties 6.9 1.7 — — (8.6) — Product sales—related parties 83.7 24.2 104.6 5.3 (217.8) — Gathering and transportation 11.3 49.0 59.2 16.7 — 136.2 Processing 7.3 35.7 35.7 0.8 — 79.5 NGL services — — — 10.0 — 10.0 Crude services 5.3 — 5.2 12.9 — 23.4 Other services 2.9 0.3 0.2 0.2 — 3.6 Midstream services 26.8 85.0 100.3 40.6 — 252.7 NGL services—related parties — — — (0.3) 0.3 — Crude services—related parties — — 1.2 — (1.2) — Midstream services—related parties — — 1.2 (0.3) (0.9) — Revenue from contracts with customers 742.3 149.8 299.2 730.5 (218.7) 1,703.1 Cost of sales (680.5) (51.0) (159.4) (627.9) 218.7 (1,300.1) Operating expenses (28.4) (25.8) (26.1) (37.6) — (117.9) Gain on derivative activity — — — — 6.9 6.9 Segment profit $ 33.4 $ 73.0 $ 113.7 $ 65.0 $ 6.9 $ 292.0 Depreciation and amortization $ (30.1) $ (36.9) $ (47.6) $ (36.9) $ (2.2) $ (153.7) Goodwill $ — $ — $ 190.3 $ — $ — $ 190.3 Capital expenditures $ 52.4 $ 27.0 $ 70.3 $ 19.5 $ 2.4 $ 171.6 Permian North Texas Oklahoma Louisiana Corporate Totals Six Months Ended June 30, 2020 Natural gas sales $ 47.5 $ 34.7 $ 69.9 $ 150.2 $ — $ 302.3 NGL sales 0.1 0.3 1.7 654.6 — 656.7 Crude oil and condensate sales 372.0 — 21.2 73.3 — 466.5 Product sales 419.6 35.0 92.8 878.1 — 1,425.5 NGL sales—related parties 105.4 31.1 123.6 10.0 (270.1) — Crude oil and condensate sales—related parties 0.1 1.9 (0.1) — (1.9) — Product sales—related parties 105.5 33.0 123.5 10.0 (272.0) — Gathering and transportation 29.4 90.1 108.8 23.2 — 251.5 Processing 11.8 68.4 65.4 1.3 — 146.9 NGL services — 0.1 — 38.2 — 38.3 Crude services 9.2 — 8.9 21.6 — 39.7 Other services 0.8 0.5 0.2 0.8 — 2.3 Midstream services 51.2 159.1 183.3 85.1 — 478.7 Crude services—related parties — — 0.2 — (0.2) — Midstream services—related parties — — 0.2 — (0.2) — Revenue from contracts with customers 576.3 227.1 399.8 973.2 (272.2) 1,904.2 Cost of sales (452.3) (45.9) (154.8) (772.2) 272.2 (1,153.0) Operating expenses (48.2) (39.0) (42.3) (59.3) — (188.8) Loss on derivative activity — — — — (3.2) (3.2) Segment profit (loss) $ 75.8 $ 142.2 $ 202.7 $ 141.7 $ (3.2) $ 559.2 Depreciation and amortization $ (60.2) $ (73.6) $ (110.7) $ (72.4) $ (4.1) $ (321.0) Impairments $ — $ — $ — $ (169.9) $ — $ (169.9) Capital expenditures $ 132.9 $ 7.7 $ 11.5 $ 30.8 $ 1.1 $ 184.0 Permian North Texas Oklahoma Louisiana Corporate Totals Six Months Ended June 30, 2019 Natural gas sales $ 35.1 $ 82.5 $ 121.9 $ 224.8 $ — $ 464.3 NGL sales 0.6 18.0 13.2 1,071.9 — 1,103.7 Crude oil and condensate sales 1,212.8 — 58.2 142.3 — 1,413.3 Product sales 1,248.5 100.5 193.3 1,439.0 — 2,981.3 Natural gas sales—related parties 0.4 0.3 — — (0.7) — NGL sales—related parties 173.6 50.7 230.7 8.5 (463.5) — Crude oil and condensate sales—related parties 10.9 2.7 — — (13.6) — Product sales—related parties 184.9 53.7 230.7 8.5 (477.8) — Gathering and transportation 21.6 112.6 114.5 33.9 — 282.6 Processing 15.0 56.8 69.8 1.7 — 143.3 NGL services — — — 21.7 — 21.7 Crude services 10.5 — 9.2 26.7 — 46.4 Other services 4.4 0.5 (0.1) 0.4 — 5.2 Midstream services 51.5 169.9 193.4 84.4 — 499.2 NGL services—related parties — — — (3.3) 3.3 — Crude services—related parties — — 1.5 — (1.5) — Midstream services—related parties — — 1.5 (3.3) 1.8 — Revenue from contracts with customers 1,484.9 324.1 618.9 1,528.6 (476.0) 3,480.5 Cost of sales (1,356.7) (124.7) (343.6) (1,314.5) 476.0 (2,663.5) Operating expenses (56.2) (51.5) (51.5) (73.2) — (232.4) Gain on derivative activity — — — — 8.7 8.7 Segment profit $ 72.0 $ 147.9 $ 223.8 $ 140.9 $ 8.7 $ 593.3 Depreciation and amortization $ (58.0) $ (71.2) $ (93.7) $ (78.7) $ (4.2) $ (305.8) Goodwill $ — $ — $ 190.3 $ — $ — $ 190.3 Capital expenditures $ 148.3 $ 31.3 $ 178.5 $ 60.5 $ 4.0 $ 422.6 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 Six Months Ended 2020 2019 2020 2019 Segment profit $ 259.1 $ 292.0 $ 559.2 $ 593.3 General and administrative expenses (23.4) (31.9) (54.3) (70.5) Loss on disposition of assets (5.2) (0.1) (4.6) (0.1) Depreciation and amortization (158.2) (153.7) (321.0) (305.8) Impairments (1.5) — (169.9) — Loss on secured term loan receivable — (52.9) — (52.9) Operating income $ 70.8 $ 53.4 $ 9.4 $ 164.0 The table below represents information about segment assets as of June 30, 2020 and December 31, 2019 (in millions): Segment Identifiable Assets: June 30, 2020 December 31, 2019 Permian $ 2,268.5 $ 2,281.1 North Texas 1,061.7 1,135.8 Oklahoma 2,934.4 3,035.0 Louisiana 2,273.7 2,562.0 Corporate 142.8 120.7 Total identifiable assets $ 8,681.1 $ 9,134.6 |
Other Information
Other Information | 6 Months Ended |
Jun. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Information | (12) 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: June 30, 2020 December 31, 2019 Natural gas and NGLs inventory $ 39.7 $ 43.4 Prepaid expenses and other 18.7 13.5 Other current assets $ 58.4 $ 56.9 Other current liabilities: June 30, 2020 December 31, 2019 Accrued interest $ 32.0 $ 32.6 Accrued wages and benefits, including taxes 15.8 31.5 Accrued ad valorem taxes 23.0 28.5 Capital expenditure accruals 20.6 42.4 Retention liability 11.0 8.7 Short-term lease liability 16.0 21.1 Suspense producer payments 12.1 13.8 Operating expense accruals 9.2 10.8 Other 17.0 12.3 Other current liabilities $ 156.7 $ 201.7 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying consolidated financial statements have been 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, 2019. Certain reclassifications were made to the financial statements for the prior period to conform to current period presentation. The effect of these reclassifications had no impact on previously reported partners’ equity or net income (loss). 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. |
Property and Equipment | Property and Equipment Impairment Review. In accordance with ASC 360 , Property, Plant, and Equipment , we evaluate long-lived assets of identifiable business activities for potential impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The carrying amount of a long-lived asset is not recoverable when it exceeds the undiscounted sum of the future cash flows expected to result from the use and eventual disposition of the asset. Estimates of expected future cash flows represent management’s best estimate based on reasonable and supportable assumptions. When the carrying amount of a long-lived asset is not recoverable, an impairment is recognized equal to the excess of the asset’s carrying value over its fair value, which is based on inputs that are not observable in the market, and thus represent Level 3 inputs. |
Adopted Accounting Standards | Adopted Accounting Standards Effective January 1, 2020, we adopted ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Topic 350): Internal-Use Software. 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. For the three and six months ended June 30, 2020, we did not capitalize any cloud computing costs. However, to the extent future 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 statements of operations, rather than “Depreciation and amortization.” Effective January 1, 2020, we adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The updates in ASU 2016-13 provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Following the adoption of ASU 2016-13, we record an allowance for doubtful accounts based on our expectation of future losses. Because our receivables are typically paid within 30 days, and because we closely monitor the credit-worthiness of all our counterparties, adopting ASU 2016-13 did not have a material effect on our financial statements. However, in the event we foresee further or sustained deterioration in the current market environment, or other factors indicating an increased likelihood of defaults by our customers, we may recognize additional losses. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 and six months ended June 30, 2020, we had contractual commitments of $41.4 million and $83.2 million under our MVC contracts, respectively, and recorded $13.4 million and $25.2 million of revenue due to volume shortfalls, respectively. MVC and Firm Transportation Commitments (in millions) (1) 2020 (remaining) $ 126.9 2021 115.1 2022 99.8 2023 90.5 2024 77.0 Thereafter 143.3 Total $ 652.6 ____________________________ |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 Six Months Ended June 30, 2020 Customer relationships, beginning of period $ 1,795.8 $ (545.9) $ 1,249.9 Amortization expense — (61.8) (61.8) Retirements (1) (1.6) 0.6 (1.0) Customer relationships, end of period $ 1,794.2 $ (607.1) $ 1,187.1 ____________________________ (1) Intangible assets retired as a result of the disposition of certain non-core assets. |
Summary of Estimated Aggregate Amortization Expense | The following table summarizes our estimated aggregate amortization expense for the next five years and thereafter (in millions): 2020 (remaining) $ 61.7 2021 123.4 2022 123.4 2023 123.4 2024 123.4 Thereafter 631.8 Total $ 1,187.1 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | As of June 30, 2020 and December 31, 2019, long-term debt consisted of the following (in millions): June 30, 2020 December 31, 2019 Outstanding Principal Premium (Discount) Long-Term Debt Outstanding Principal Premium (Discount) Long-Term Debt Related party debt $ 1,748.7 $ — $ 1,748.7 $ 1,700.0 $ — $ 1,700.0 4.40% Senior unsecured notes due 2024 521.8 1.2 523.0 550.0 1.5 551.5 4.15% Senior unsecured notes due 2025 720.8 (0.6) 720.2 750.0 (0.7) 749.3 4.85% Senior unsecured notes due 2026 491.0 (0.4) 490.6 500.0 (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 (5.8) 444.2 450.0 (5.9) 444.1 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 $ 4,782.3 $ (5.9) 4,776.4 $ 4,800.0 $ (5.9) 4,794.1 Debt issuance cost (1) (27.4) (29.8) Long-term debt, net of unamortized issuance cost $ 4,749.0 $ 4,764.3 ____________________________ |
Schedule of Extinguishment of Debt | For the three and six months ended June 30, 2020, we and ENLC made aggregate payments to partially repurchase the 2024, 2025, 2026, and 2029 Notes in open market transactions. Activity related to the partial repurchases of our outstanding debt consisted of the following (in millions): Three Months Ended Six Months Ended Debt repurchased $ 57.2 $ 67.7 Aggregate payments (30.8) (36.0) Net discount on repurchased debt (0.3) (0.3) Accrued interest on repurchased debt 0.6 0.6 Gain on extinguishment of debt $ 26.7 $ 32.0 |
Partners' Capital (Tables)
Partners' Capital (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Partners' Capital Notes [Abstract] | |
Summary of Distribution Activity | A summary of the distribution activity relating to the Series B Preferred Units during the six months ended June 30, 2020 and 2019 is provided below: Declaration period Distribution paid as additional Series B Preferred Units Cash Distribution (in millions) Date paid/payable 2020 Fourth Quarter of 2019 148,999 $ 16.8 February 13, 2020 First Quarter of 2020 149,371 $ 16.8 May 13, 2020 Second Quarter of 2020 149,745 $ 16.8 August 13, 2020 2019 Fourth Quarter of 2018 425,785 $ 16.5 February 13, 2019 First Quarter of 2019 147,887 $ 16.7 May 14, 2019 Second Quarter of 2019 148,257 $ 17.1 August 13, 2019 |
Incentive Distributions | The net income (loss) allocated to our general partner is as follows (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Unit-based compensation attributable to ENLC’s restricted and performance units $ (6.8) $ (6.4) $ (19.1) $ (18.5) General partner share of net income (loss) 0.2 (0.2) (1.2) 0.2 General partner interest in EOGP acquisition — — — 2.4 General partner interest in net income (loss) $ (6.6) $ (6.6) $ (20.3) $ (15.9) |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 Six Months Ended 2020 2019 2020 2019 GCF Distributions $ — $ 7.4 $ 1.6 $ 9.6 Equity in income $ 0.3 $ 5.2 $ 2.1 $ 10.9 Cedar Cove JV Distributions $ 0.2 $ 0.2 $ 0.4 $ 0.5 Equity in loss $ (1.0) $ (0.5) $ (1.1) $ (0.9) Total Distributions $ 0.2 $ 7.6 $ 2.0 $ 10.1 Equity in income (loss) $ (0.7) $ 4.7 $ 1.0 $ 10.0 The following table shows the balances related to our investment in unconsolidated affiliates as of June 30, 2020 and December 31, 2019 (in millions): June 30, 2020 December 31, 2019 GCF $ 39.7 $ 39.2 Cedar Cove JV 2.4 3.9 Total investment in unconsolidated affiliates $ 42.1 $ 43.1 |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [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 Six Months Ended 2020 2019 2020 2019 Cost of unit-based compensation charged to operating expense $ 2.0 $ 2.1 $ 4.2 $ 2.4 Cost of unit-based compensation charged to general and administrative expense 5.4 5.9 12.0 16.5 Total unit-based compensation expense $ 7.4 $ 8.0 $ 16.2 $ 18.9 |
Summary of Restricted Incentive Unit Activity | six months ended June 30, 2020 is provided below: Six Months Ended ENLC Restricted Incentive Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 4,063,605 $ 13.85 Granted (1) 4,673,848 5.55 Vested (1)(2) (2,413,687) 10.35 Forfeited (478,304) 8.39 Non-vested, end of period 5,845,462 $ 9.11 Aggregate intrinsic value, end of period (in millions) $ 14.3 ____________________________ (1) Restricted incentive units typically vest at the end of three years. In February 2020, ENLC granted 1,144,842 restricted incentive units with a fair value of $5.2 million to officers and certain employees as bonus payments for 2019, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. |
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 and six months ended June 30, 2020 and 2019 is provided below (in millions): Three Months Ended Six Months Ended ENLC Restricted Incentive Units: 2020 2019 2020 2019 Aggregate intrinsic value of units vested $ 0.8 $ 0.5 $ 10.9 $ 12.9 Fair value of units vested $ 6.1 $ 0.5 $ 25.0 $ 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 six months ended June 30, 2019 is provided below (in millions). Since the Legacy ENLK Awards converted into ENLC unit-based awards as a result of the Merger, no additional restricted incentive units will vest as ENLK units under the GP Plan (such restricted incentive units, as converted, are eligible to vest as ENLC units) and no additional expense will be recognized after January 25, 2019 under the GP Plan. Six Months Ended ENLK Restricted Incentive Units: 2019 Aggregate intrinsic value of units vested $ 8.0 Fair value of units vested $ 7.2 |
Summary of Performance Units | The following table presents a summary of the performance units: Six Months Ended ENLC Performance Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 1,317,856 $ 14.22 Granted 1,161,986 7.32 Vested (1) (178,403) 30.56 Forfeited (37,646) 11.81 Non-vested, end of period 2,263,793 $ 9.43 Aggregate intrinsic value, end of period (in millions) $ 5.5 ____________________________ (1) Vested units included 67,775 units withheld for payroll taxes paid on behalf of employees. 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 and six months ended June 30, 2020 and 2019 is provided below (in millions). Three Months Ended Six Months Ended ENLC Performance Units: 2020 2019 2020 2019 Aggregate intrinsic value of units vested $ — $ — $ 0.9 $ 1.8 Fair value of units vested $ 0.5 $ — $ 5.5 $ 1.9 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 six months ended June 30, 2019 is provided below (in millions). Since the Legacy ENLK Awards converted into ENLC unit-based awards as a result of the Merger, no additional performance units will vest as ENLK units under the GP Plan (such performance units, as converted, are eligible to vest as ENLC units) and no additional expense will be recognized after January 25, 2019 under the GP Plan. Six Months Ended ENLK Performance Units: 2019 Aggregate intrinsic value of units vested $ 2.1 Fair value of units vested $ 1.7 |
Summary of Grant-Date Fair Values | The following table presents a summary of the grant-date fair value assumptions by performance unit grant date: ENLC Performance Units: January 2020 March 2020 Grant-Date Fair Value $ 7.69 $ 1.13 Beginning TSR price $ 6.13 $ 1.25 Risk-free interest rate 1.62 % 0.42 % Volatility factor 37.00 % 51.00 % |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Components of Gain (Loss) | The gain (loss) on designated cash flow hedge related to changes in the fair value of our interest rate swaps were as follows (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Gain (loss) on designated cash flow hedge $ 2.0 $ (13.5) $ (15.1) $ (13.5) The interest expense, recognized from accumulated other comprehensive loss from the monthly settlement of our interest rate swaps, included in our consolidated income statement were as follows (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Interest expense (income) $ 3.7 $ (0.3) $ 5.0 $ (0.3) The components of gain (loss) on derivative activity in the consolidated statements of operations related to commodity swaps are (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Change in fair value of derivatives $ (18.8) $ 7.2 $ (5.8) $ 5.2 Realized gain (loss) on derivatives (3.6) (0.3) 2.6 3.5 Gain (loss) on derivative activity $ (22.4) $ 6.9 $ (3.2) $ 8.7 |
Fair Value of Derivative Assets and Liabilities | The fair value of our interest rate swaps included in our consolidated balance sheets were as follows (in millions): June 30, 2020 December 31, 2019 Fair value of derivative liabilities—current $ (18.3) $ (5.6) Fair value of derivative liabilities—long-term (9.3) (6.8) Net fair value of interest rate swaps $ (27.6) $ (12.4) |
Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value1 | The fair value of derivative assets and liabilities related to commodity swaps are as follows (in millions): June 30, 2020 December 31, 2019 Fair value of derivative assets—current $ 9.9 $ 12.9 Fair value of derivative assets—long-term 5.8 4.3 Fair value of derivative liabilities—current (13.0) (8.8) Fair value of derivative liabilities—long-term (0.1) — Net fair value of commodity swaps $ 2.6 $ 8.4 |
Summary of Notional Volumes and Fair Value of Instruments | Set forth below are the summarized notional volumes and fair values of all instruments related to commodity swaps that we held for price risk management purposes and the related physical offsets at June 30, 2020 (in millions). The remaining term of the contracts extend no later than December 2022. June 30, 2020 Commodity Instruments Unit Volume Net Fair Value NGL (short contracts) Swaps Gallons (172.5) $ (5.7) NGL (long contracts) Swaps Gallons 3.4 (0.1) Natural gas (short contracts) Swaps MMBtu (21.6) (0.2) Natural gas (long contracts) Swaps MMBtu 15.9 (0.6) Crude and condensate (short contracts) Swaps MMbbls (10.7) 7.2 Crude and condensate (long contracts) Swaps MMbbls 0.6 2.0 Total fair value of commodity swaps $ 2.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Net Assets (Liabilities) Measured on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions): Level 2 June 30, 2020 December 31, 2019 Interest rate swaps (1) $ (27.6) $ (12.4) Commodity swaps (2) $ 2.6 $ 8.4 ____________________________ (1) The fair values of the interest rate swaps are estimated based on the difference between expected cash flows calculated at the contracted interest rates and the expected cash flows using observable benchmarks for the variable interest rates. (2) The fair values of commodity swaps 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): June 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Long-term debt (1) $ 4,749.0 $ 3,791.1 $ 4,764.3 $ 4,444.2 ____________________________ |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Summarized Financial Information | 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 June 30, 2020 Natural gas sales $ 32.4 $ 14.6 $ 28.8 $ 68.6 $ — $ 144.4 NGL sales (0.1) — 0.5 280.9 — 281.3 Crude oil and condensate sales 87.0 — 5.0 14.9 — 106.9 Product sales 119.3 14.6 34.3 364.4 — 532.6 NGL sales—related parties 59.5 13.9 56.0 3.2 (132.5) 0.1 Crude oil and condensate sales—related parties — 0.4 0.1 — (0.6) (0.1) Product sales—related parties 59.5 14.3 56.1 3.2 (133.1) — Gathering and transportation 13.1 44.2 52.5 11.5 — 121.3 Processing 7.5 33.0 32.1 0.6 — 73.2 NGL services — 0.1 — 18.6 — 18.7 Crude services 5.0 — 4.6 11.0 — 20.6 Other services 0.2 0.2 0.1 0.4 — 0.9 Midstream services 25.8 77.5 89.3 42.1 — 234.7 Crude services—related parties — — 0.1 — (0.1) — Midstream services—related parties — — 0.1 — (0.1) — Revenue from contracts with customers 204.6 106.4 179.8 409.7 (133.2) 767.3 Cost of sales (138.4) (18.9) (61.1) (312.5) 133.2 (397.7) Operating expenses (22.7) (18.5) (19.4) (27.5) — (88.1) Loss on derivative activity — — — — (22.4) (22.4) Segment profit (loss) $ 43.5 $ 69.0 $ 99.3 $ 69.7 $ (22.4) $ 259.1 Depreciation and amortization $ (31.0) $ (36.4) $ (54.1) $ (34.6) $ (2.1) $ (158.2) Impairments $ — $ — $ — $ (1.5) $ — $ (1.5) Capital expenditures $ 46.9 $ 3.0 $ 3.0 $ 15.6 $ 0.7 $ 69.2 Permian North Texas Oklahoma Louisiana Corporate Totals Three Months Ended June 30, 2019 Natural gas sales $ (1.0) $ 31.9 $ 60.3 $ 102.6 $ — $ 193.8 NGL sales 0.8 8.7 4.3 498.8 — 512.6 Crude oil and condensate sales 632.0 — 28.6 83.5 — 744.1 Other — — (0.1) — — (0.1) Product sales 631.8 40.6 93.1 684.9 — 1,450.4 Natural gas sales—related parties 0.4 0.3 — — (0.7) — NGL sales—related parties 76.4 22.2 104.6 5.3 (208.5) — Crude oil and condensate sales—related parties 6.9 1.7 — — (8.6) — Product sales—related parties 83.7 24.2 104.6 5.3 (217.8) — Gathering and transportation 11.3 49.0 59.2 16.7 — 136.2 Processing 7.3 35.7 35.7 0.8 — 79.5 NGL services — — — 10.0 — 10.0 Crude services 5.3 — 5.2 12.9 — 23.4 Other services 2.9 0.3 0.2 0.2 — 3.6 Midstream services 26.8 85.0 100.3 40.6 — 252.7 NGL services—related parties — — — (0.3) 0.3 — Crude services—related parties — — 1.2 — (1.2) — Midstream services—related parties — — 1.2 (0.3) (0.9) — Revenue from contracts with customers 742.3 149.8 299.2 730.5 (218.7) 1,703.1 Cost of sales (680.5) (51.0) (159.4) (627.9) 218.7 (1,300.1) Operating expenses (28.4) (25.8) (26.1) (37.6) — (117.9) Gain on derivative activity — — — — 6.9 6.9 Segment profit $ 33.4 $ 73.0 $ 113.7 $ 65.0 $ 6.9 $ 292.0 Depreciation and amortization $ (30.1) $ (36.9) $ (47.6) $ (36.9) $ (2.2) $ (153.7) Goodwill $ — $ — $ 190.3 $ — $ — $ 190.3 Capital expenditures $ 52.4 $ 27.0 $ 70.3 $ 19.5 $ 2.4 $ 171.6 Permian North Texas Oklahoma Louisiana Corporate Totals Six Months Ended June 30, 2020 Natural gas sales $ 47.5 $ 34.7 $ 69.9 $ 150.2 $ — $ 302.3 NGL sales 0.1 0.3 1.7 654.6 — 656.7 Crude oil and condensate sales 372.0 — 21.2 73.3 — 466.5 Product sales 419.6 35.0 92.8 878.1 — 1,425.5 NGL sales—related parties 105.4 31.1 123.6 10.0 (270.1) — Crude oil and condensate sales—related parties 0.1 1.9 (0.1) — (1.9) — Product sales—related parties 105.5 33.0 123.5 10.0 (272.0) — Gathering and transportation 29.4 90.1 108.8 23.2 — 251.5 Processing 11.8 68.4 65.4 1.3 — 146.9 NGL services — 0.1 — 38.2 — 38.3 Crude services 9.2 — 8.9 21.6 — 39.7 Other services 0.8 0.5 0.2 0.8 — 2.3 Midstream services 51.2 159.1 183.3 85.1 — 478.7 Crude services—related parties — — 0.2 — (0.2) — Midstream services—related parties — — 0.2 — (0.2) — Revenue from contracts with customers 576.3 227.1 399.8 973.2 (272.2) 1,904.2 Cost of sales (452.3) (45.9) (154.8) (772.2) 272.2 (1,153.0) Operating expenses (48.2) (39.0) (42.3) (59.3) — (188.8) Loss on derivative activity — — — — (3.2) (3.2) Segment profit (loss) $ 75.8 $ 142.2 $ 202.7 $ 141.7 $ (3.2) $ 559.2 Depreciation and amortization $ (60.2) $ (73.6) $ (110.7) $ (72.4) $ (4.1) $ (321.0) Impairments $ — $ — $ — $ (169.9) $ — $ (169.9) Capital expenditures $ 132.9 $ 7.7 $ 11.5 $ 30.8 $ 1.1 $ 184.0 Permian North Texas Oklahoma Louisiana Corporate Totals Six Months Ended June 30, 2019 Natural gas sales $ 35.1 $ 82.5 $ 121.9 $ 224.8 $ — $ 464.3 NGL sales 0.6 18.0 13.2 1,071.9 — 1,103.7 Crude oil and condensate sales 1,212.8 — 58.2 142.3 — 1,413.3 Product sales 1,248.5 100.5 193.3 1,439.0 — 2,981.3 Natural gas sales—related parties 0.4 0.3 — — (0.7) — NGL sales—related parties 173.6 50.7 230.7 8.5 (463.5) — Crude oil and condensate sales—related parties 10.9 2.7 — — (13.6) — Product sales—related parties 184.9 53.7 230.7 8.5 (477.8) — Gathering and transportation 21.6 112.6 114.5 33.9 — 282.6 Processing 15.0 56.8 69.8 1.7 — 143.3 NGL services — — — 21.7 — 21.7 Crude services 10.5 — 9.2 26.7 — 46.4 Other services 4.4 0.5 (0.1) 0.4 — 5.2 Midstream services 51.5 169.9 193.4 84.4 — 499.2 NGL services—related parties — — — (3.3) 3.3 — Crude services—related parties — — 1.5 — (1.5) — Midstream services—related parties — — 1.5 (3.3) 1.8 — Revenue from contracts with customers 1,484.9 324.1 618.9 1,528.6 (476.0) 3,480.5 Cost of sales (1,356.7) (124.7) (343.6) (1,314.5) 476.0 (2,663.5) Operating expenses (56.2) (51.5) (51.5) (73.2) — (232.4) Gain on derivative activity — — — — 8.7 8.7 Segment profit $ 72.0 $ 147.9 $ 223.8 $ 140.9 $ 8.7 $ 593.3 Depreciation and amortization $ (58.0) $ (71.2) $ (93.7) $ (78.7) $ (4.2) $ (305.8) Goodwill $ — $ — $ 190.3 $ — $ — $ 190.3 Capital expenditures $ 148.3 $ 31.3 $ 178.5 $ 60.5 $ 4.0 $ 422.6 |
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 Six Months Ended 2020 2019 2020 2019 Segment profit $ 259.1 $ 292.0 $ 559.2 $ 593.3 General and administrative expenses (23.4) (31.9) (54.3) (70.5) Loss on disposition of assets (5.2) (0.1) (4.6) (0.1) Depreciation and amortization (158.2) (153.7) (321.0) (305.8) Impairments (1.5) — (169.9) — Loss on secured term loan receivable — (52.9) — (52.9) Operating income $ 70.8 $ 53.4 $ 9.4 $ 164.0 |
Schedule of Assets | The table below represents information about segment assets as of June 30, 2020 and December 31, 2019 (in millions): Segment Identifiable Assets: June 30, 2020 December 31, 2019 Permian $ 2,268.5 $ 2,281.1 North Texas 1,061.7 1,135.8 Oklahoma 2,934.4 3,035.0 Louisiana 2,273.7 2,562.0 Corporate 142.8 120.7 Total identifiable assets $ 8,681.1 $ 9,134.6 |
Other Information (Tables)
Other Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: June 30, 2020 December 31, 2019 Natural gas and NGLs inventory $ 39.7 $ 43.4 Prepaid expenses and other 18.7 13.5 Other current assets $ 58.4 $ 56.9 Other current liabilities: June 30, 2020 December 31, 2019 Accrued interest $ 32.0 $ 32.6 Accrued wages and benefits, including taxes 15.8 31.5 Accrued ad valorem taxes 23.0 28.5 Capital expenditure accruals 20.6 42.4 Retention liability 11.0 8.7 Short-term lease liability 16.0 21.1 Suspense producer payments 12.1 13.8 Operating expense accruals 9.2 10.8 Other 17.0 12.3 Other current liabilities $ 156.7 $ 201.7 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Impairment charges | $ 1.9 | |||
Redemption of non-controlling interest | (4) | $ 0 | ||
Redeemable Noncontrolling Interest | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Redemption of non-controlling interest | $ 4 | $ 4 | ||
Louisiana Operating Segment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Impairment charges | 1.5 | 168 | ||
Minimum Volume Contract | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Contract with customer, liability | 41.4 | 83.2 | ||
Contracts with customers, revenue recognition | $ 13.4 | $ 25.2 |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Expected Future Performance Obligations (Details) $ in Millions | Jun. 30, 2020USD ($) |
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 652.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 126.9 |
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]: 2021-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 115.1 |
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] | |
Remaining performance obligations | $ 99.8 |
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] | |
Remaining performance obligations | $ 90.5 |
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] | |
Remaining performance obligations | $ 77 |
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]: 2025-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 143.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected gross operating margin, expected timing of satisfaction, period |
Intangible Assets - Changes in
Intangible Assets - Changes in Carrying Value (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | ||||
Accumulated amortization, beginning balance | $ (545.9) | |||
Amortization expense | $ (30.9) | $ (31) | $ (61.9) | |
Retirements, net | (1) | |||
Accumulated amortization, ending balance | (607.1) | (607.1) | ||
Net carrying amount, ending balance | 1,187.1 | 1,187.1 | ||
Louisiana Operating Segment | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Retirements, gross | (1.6) | |||
Customer relationships | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Gross carrying amount, beginning balance | 1,795.8 | |||
Accumulated amortization, beginning balance | (545.9) | |||
Net carrying amount, beginning balance | 1,249.9 | |||
Amortization expense | (61.8) | |||
Retirements, accumulated amortization | 0.6 | |||
Gross carrying amount, ending balance | 1,794.2 | 1,794.2 | ||
Accumulated amortization, ending balance | (607.1) | (607.1) | ||
Net carrying amount, ending balance | $ 1,187.1 | $ 1,187.1 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill | ||||
Amortization expense | $ 30.9 | $ 31 | $ 61.9 | |
Minimum | ||||
Goodwill | ||||
Amortization period | 10 years | |||
Maximum | ||||
Goodwill | ||||
Amortization period | 20 years | |||
Weighted average | ||||
Goodwill | ||||
Amortization period | 15 years |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) $ in Millions | Jun. 30, 2020USD ($) |
Summary of estimated amortization expense | |
2020 (remaining) | $ 61.7 |
2021 | 123.4 |
2022 | 123.4 |
2023 | 123.4 |
2024 | 123.4 |
Thereafter | 631.8 |
Total | $ 1,187.1 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Apr. 09, 2019 | |
Related Party Transaction | ||||||
Cost of sales | $ 397.7 | $ 1,300.1 | $ 1,153 | $ 2,663.5 | ||
Accounts payable to related party | $ 0.4 | $ 0.4 | $ 1.1 | |||
Term Loan Due 2029 | Unsecured Debt | ||||||
Related Party Transaction | ||||||
Stated interest rate | 5.375% | 5.375% | 5.375% | |||
ENLC | ||||||
Related Party Transaction | ||||||
Accounts receivable, related parties | $ 22.1 | $ 22.1 | 18.1 | |||
Cedar Cove Joint Venture | ||||||
Related Party Transaction | ||||||
Cost of sales | 1.3 | $ 5.8 | 4.2 | $ 13.9 | ||
Accounts payable to related party | $ 0.4 | $ 0.4 | $ 1.1 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument | ||
Outstanding principal | $ 4,782.3 | $ 4,800 |
Premium (discount) | (5.9) | (5.9) |
Long-term debt | 4,776.4 | 4,794.1 |
Debt issuance costs | (27.4) | (29.8) |
Long-term debt, net of unamortized issuance cost | 4,749 | 4,764.3 |
Amortization | 12.6 | 10.9 |
Related party debt | ||
Debt Instrument | ||
Outstanding principal | 1,748.7 | 1,700 |
Premium (discount) | 0 | 0 |
Long-term debt | 1,748.7 | 1,700 |
4.40% Senior unsecured notes due 2024 | ||
Debt Instrument | ||
Outstanding principal | 521.8 | 550 |
Premium (discount) | 1.2 | 1.5 |
Long-term debt | $ 523 | 551.5 |
Stated interest rate | 4.40% | |
4.15% Senior unsecured notes due 2025 | ||
Debt Instrument | ||
Outstanding principal | $ 720.8 | 750 |
Premium (discount) | (0.6) | (0.7) |
Long-term debt | $ 720.2 | 749.3 |
Stated interest rate | 4.15% | |
4.85% Senior unsecured notes due 2026 | ||
Debt Instrument | ||
Outstanding principal | $ 491 | 500 |
Premium (discount) | (0.4) | (0.5) |
Long-term debt | $ 490.6 | 499.5 |
Stated interest rate | 4.85% | |
5.60% Senior unsecured notes due 2044 | ||
Debt Instrument | ||
Outstanding principal | $ 350 | 350 |
Premium (discount) | (0.2) | (0.2) |
Long-term debt | $ 349.8 | 349.8 |
Stated interest rate | 5.60% | |
5.05% Senior unsecured notes due 2045 | ||
Debt Instrument | ||
Outstanding principal | $ 450 | 450 |
Premium (discount) | (5.8) | (5.9) |
Long-term debt | $ 444.2 | 444.1 |
Stated interest rate | 5.05% | |
5.45% Senior unsecured notes due 2047 | ||
Debt Instrument | ||
Outstanding principal | $ 500 | 500 |
Premium (discount) | (0.1) | (0.1) |
Long-term debt | $ 499.9 | $ 499.9 |
Stated interest rate | 5.45% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Dec. 11, 2018USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Apr. 09, 2019 |
Debt Instrument | |||||||
Debt instrument, net (discount) premium | $ 4,776,400,000 | $ 4,776,400,000 | $ 4,794,100,000 | ||||
Payments on borrowings | 476,000,000 | $ 2,870,000,000 | |||||
Outstanding principal | 4,782,300,000 | 4,782,300,000 | 4,800,000,000 | ||||
Gain on extinguishment of debt | $ 26,700,000 | $ 0 | $ 32,000,000 | $ 0 | |||
Term Loan Due 2029 | Unsecured Debt | |||||||
Debt Instrument | |||||||
Stated interest rate | 5.375% | 5.375% | 5.375% | ||||
Credit Facility | |||||||
Debt Instrument | |||||||
Debt instrument, net (discount) premium | $ 1,748,700,000 | $ 1,748,700,000 | 1,700,000,000 | ||||
Additional amount available (not to exceed) | $ 1,750,000,000 | 2,250,000,000 | |||||
Line of credit facility, fair value of amount outstanding | 400,000,000 | 400,000,000 | |||||
Outstanding principal | $ 1,748,700,000 | $ 1,748,700,000 | $ 1,700,000,000 | ||||
Credit Facility | Unsecured Debt | |||||||
Debt Instrument | |||||||
Line of credit facility, consolidated EBITDA to consolidated interest charges, ratio | 2.5 | ||||||
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 | 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% | ||||||
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 | Letter of Credit | |||||||
Debt Instrument | |||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||
Letters of credit outstanding, liable, percentage | 105.00% | 105.00% | |||||
Term Loan Due 2021 | |||||||
Debt Instrument | |||||||
Ratio of consolidated indebtedness to consolidated EBITDA | 5 | ||||||
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 | 2.5 | ||||||
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 | 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% | ||||||
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% | ||||||
ENLC | Credit Facility | |||||||
Debt Instrument | |||||||
Line of credit facility, fair value of amount outstanding | 400,000,000 | 400,000,000 | |||||
ENLC | Letter of Credit | Credit Facility | |||||||
Debt Instrument | |||||||
Line of credit facility, fair value of amount outstanding | $ 23,000,000 | $ 23,000,000 |
Long-Term Debt - Senior Unsecur
Long-Term Debt - Senior Unsecured Notes Repurchases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||
Debt repurchased | $ 57.2 | $ 67.7 |
Aggregate payments | (30.8) | (36) |
Net discount on repurchased debt | (0.3) | (0.3) |
Accrued interest on repurchased debt | 0.6 | 0.6 |
Gain on extinguishment of debt | $ 26.7 | $ 32 |
Partners' Capital - Narrative a
Partners' Capital - Narrative and Distribution Activity (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 13, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 |
Series B Preferred Unitholders | |||||||||
Partners' capital | |||||||||
Distribution paid as additional Series B Preferred Units (in shares) | 149,745 | 149,371 | 148,999 | 148,257 | 147,887 | 425,785 | |||
Cash distribution (in millions) | $ 16.8 | $ 16.8 | $ 16.8 | $ 17.1 | $ 16.7 | $ 16.5 | |||
Series C Preferred Unitholders | |||||||||
Partners' capital | |||||||||
Distribution paid as additional Series B Preferred Units (in shares) | 12,000,000 | 12,000,000 | 12,000,000 | 12,000,000 | |||||
Limited Partner | Common Units | |||||||||
Partners' capital | |||||||||
Distribution declared per unit (in dollars per share) | $ 0.39 |
Partners' Capital - Net Income
Partners' Capital - Net Income Allocated to the General Partner (Details) - General Partner Interest - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Incentive | ||||
Unit-based compensation attributable to ENLC’s restricted and performance units | $ (6.8) | $ (6.4) | $ (19.1) | $ (18.5) |
General partner share of net income (loss) | 0.2 | (0.2) | (1.2) | 0.2 |
General partner interest in EOGP acquisition | 0 | 0 | 0 | 2.4 |
General partner interest in net income (loss) | $ (6.6) | $ (6.6) | $ (20.3) | $ (15.9) |
Investment in Unconsolidated _3
Investment in Unconsolidated Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments | |||||
Distributions | $ 0.2 | $ 7.6 | $ 2 | $ 10.1 | |
Equity in income (loss) | (0.7) | 4.7 | 1 | 10 | |
Total investment in unconsolidated affiliates | $ 42.1 | $ 42.1 | $ 43.1 | ||
GCF | |||||
Schedule of Equity Method Investments | |||||
Ownership interest | 38.75% | 38.75% | |||
Distributions | $ 0 | 7.4 | $ 1.6 | 9.6 | |
Equity in income (loss) | 0.3 | 5.2 | 2.1 | 10.9 | |
Total investment in unconsolidated affiliates | $ 39.7 | $ 39.7 | 39.2 | ||
Cedar Cove JV | |||||
Schedule of Equity Method Investments | |||||
Ownership interest | 30.00% | 30.00% | |||
Distributions | $ 0.2 | 0.2 | $ 0.4 | 0.5 | |
Equity in income (loss) | (1) | $ (0.5) | (1.1) | $ (0.9) | |
Total investment in unconsolidated affiliates | $ 2.4 | $ 2.4 | $ 3.9 |
Employee Incentive Plans - Amou
Employee Incentive Plans - Amounts Recognized in Consolidated Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Compensation allocation | ||||
Total unit-based compensation expense | $ 7.4 | $ 8 | $ 16.2 | $ 18.9 |
Cost of unit-based compensation charged to operating expense | ||||
Compensation allocation | ||||
Total unit-based compensation expense | 2 | 2.1 | 4.2 | 2.4 |
Cost of unit-based compensation charged to general and administrative expense | ||||
Compensation allocation | ||||
Total unit-based compensation expense | $ 5.4 | $ 5.9 | $ 12 | $ 16.5 |
Employee Incentive Plans - Rest
Employee Incentive Plans - Restricted and Performance Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2020 | Feb. 29, 2020 | Jan. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Grant date fair value assumptions | |||||||
Grant-date fair value (in dollars per share) | $ 1.13 | $ 7.69 | |||||
Beginning TSR price (in dollars per share) | $ 1.25 | $ 6.13 | |||||
Risk-free interest rate | 0.42% | 1.62% | |||||
Volatility factor | 51.00% | 37.00% | |||||
Unvested restricted units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Fair value of units vested | $ 7.2 | ||||||
Aggregate intrinsic value of units vested | 8 | ||||||
Unvested restricted units | ENLC | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Non-vested, beginning of period (in shares) | 4,063,605 | 4,063,605 | |||||
Granted (in shares) | 1,144,842 | 4,673,848 | |||||
Vested (in shares) | (2,413,687) | ||||||
Forfeited (in shares) | (478,304) | ||||||
Non-vested, end of period (in shares) | 5,845,462 | 5,845,462 | |||||
Aggregate intrinsic value, end of period (in dollars per share) | $ 14.3 | $ 14.3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Non-vested, beginning of period (in dollars per share) | $ 13.85 | $ 13.85 | |||||
Granted (in dollars per share) | 5.55 | ||||||
Vested (in dollars per share) | 10.35 | ||||||
Forfeited (in dollars per share) | 8.39 | ||||||
Non-vested, end of period (in dollars per share) | $ 9.11 | $ 9.11 | |||||
Fair value of units vested | $ 5.2 | $ 6.1 | $ 0.5 | $ 25 | 13.1 | ||
Units withheld for payroll taxes (in shares) | 851,940 | ||||||
Aggregate intrinsic value of units vested | 0.8 | 0.5 | $ 10.9 | 12.9 | |||
Unrecognized compensation cost related to non-vested restricted incentive units | $ 29.4 | $ 29.4 | |||||
Unrecognized compensation costs, weighted average period for recognition | 1 year 9 months 18 days | ||||||
Vesting period | 3 years | ||||||
Performance Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Fair value of units vested | 1.7 | ||||||
Aggregate intrinsic value of units vested | 2.1 | ||||||
Performance Units | ENLC | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Non-vested, beginning of period (in shares) | 1,317,856 | 1,317,856 | |||||
Granted (in shares) | 1,161,986 | ||||||
Vested (in shares) | (178,403) | ||||||
Forfeited (in shares) | (37,646) | ||||||
Non-vested, end of period (in shares) | 2,263,793 | 2,263,793 | |||||
Aggregate intrinsic value, end of period (in dollars per share) | $ 5.5 | $ 5.5 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Non-vested, beginning of period (in dollars per share) | $ 14.22 | $ 14.22 | |||||
Granted (in dollars per share) | 7.32 | ||||||
Vested (in dollars per share) | 30.56 | ||||||
Forfeited (in dollars per share) | 11.81 | ||||||
Non-vested, end of period (in dollars per share) | $ 9.43 | $ 9.43 | |||||
Fair value of units vested | $ 0.5 | 0 | $ 5.5 | 1.9 | |||
Units withheld for payroll taxes (in shares) | 67,775 | ||||||
Aggregate intrinsic value of units vested | 0 | $ 0 | $ 0.9 | $ 1.8 | |||
Unrecognized compensation cost related to non-vested restricted incentive units | $ 14.5 | $ 14.5 | |||||
Unrecognized compensation costs, weighted average period for recognition | 1 year 8 months 12 days | ||||||
Performance Units | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Percent of units vesting | 0.00% | ||||||
Performance Units | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Percent of units vesting | 200.00% |
Derivatives - Interest Rate Swa
Derivatives - Interest Rate Swaps (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Apr. 30, 2019 | |
Derivative [Line Items] | |||||||
Derivative, notional amount | $ 850,000,000 | ||||||
Derivative, fixed interest rate | 2.28% | ||||||
Gain (loss) on designated cash flow hedge | $ 2,000,000 | $ (17,100,000) | $ (13,500,000) | $ (15,100,000) | $ (13,500,000) | ||
Gain (loss) on interest rate cash flow hedge ineffectiveness | 3,700,000 | $ (300,000) | 5,000,000 | $ (300,000) | |||
Interest expense expected to be reclassified out of accumulated other comprehensive income (loss) over the next twelve months | 18,400,000 | 18,400,000 | |||||
Fair value of derivative liabilities—current | (31,300,000) | (31,300,000) | $ (14,400,000) | ||||
Fair value of derivative liabilities—long-term | (9,400,000) | (9,400,000) | (6,800,000) | ||||
Interest rate swaps | |||||||
Derivative [Line Items] | |||||||
Fair value of derivative liabilities—current | (18,300,000) | (18,300,000) | (5,600,000) | ||||
Fair value of derivative liabilities—long-term | (9,300,000) | (9,300,000) | (6,800,000) | ||||
Net fair value of commodity swaps | $ (27,600,000) | $ (27,600,000) | $ (12,400,000) |
Derivatives - Components of Gai
Derivatives - Components of Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments | ||||
Gain (loss) on derivative activity | $ (22.4) | $ 6.9 | $ (3.2) | $ 8.7 |
Commodity Swaps | ||||
Derivative Instruments | ||||
Change in fair value of derivatives | (18.8) | 7.2 | (5.8) | 5.2 |
Realized gain (loss) on derivatives | (3.6) | (0.3) | 2.6 | 3.5 |
Gain (loss) on derivative activity | $ (22.4) | $ 6.9 | $ (3.2) | $ 8.7 |
Derivatives - Assets and Liabil
Derivatives - Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Fair value of derivative assets—current | $ 9.9 | $ 12.9 |
Fair value of derivative assets—long-term | 5.8 | 4.3 |
Fair value of derivative liabilities—current | (31.3) | (14.4) |
Fair value of derivative liabilities—long-term | (9.4) | (6.8) |
Commodity swaps | ||
Derivative [Line Items] | ||
Fair value of derivative assets—current | 9.9 | 12.9 |
Fair value of derivative assets—long-term | 5.8 | 4.3 |
Fair value of derivative liabilities—current | (13) | (8.8) |
Fair value of derivative liabilities—long-term | (0.1) | 0 |
Net fair value of commodity swaps | $ 2.6 | $ 8.4 |
Derivatives - Commodities (Deta
Derivatives - Commodities (Details) gal in Millions, MMBbls in Millions, MMBTU in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($)MMBTUgalMMBbls | |
Derivative [Line Items] | |
Possible reduction in maximum loss if counterparties fail to perform | $ 8.1 |
Commodity | |
Derivative [Line Items] | |
Net Fair Value | 2.6 |
Maximum loss if counterparties fail to perform | $ 15.7 |
Commodity | NGL | Short | |
Derivative [Line Items] | |
Notional amount (in gallons and mmbls) | gal | 172.5 |
Net Fair Value | $ (5.7) |
Commodity | NGL | Long | |
Derivative [Line Items] | |
Notional amount (in gallons and mmbls) | gal | 3.4 |
Net Fair Value | $ (0.1) |
Commodity | Natural Gas | Short | |
Derivative [Line Items] | |
Notional amount (in mmbtu) | MMBTU | 21.6 |
Net Fair Value | $ (0.2) |
Commodity | Natural Gas | Long | |
Derivative [Line Items] | |
Notional amount (in mmbtu) | MMBTU | 15.9 |
Net Fair Value | $ (0.6) |
Commodity | Crude and Condensate | Short | |
Derivative [Line Items] | |
Notional amount (in gallons and mmbls) | MMBbls | 10.7 |
Net Fair Value | $ 7.2 |
Commodity | Crude and Condensate | Long | |
Derivative [Line Items] | |
Notional amount (in gallons and mmbls) | MMBbls | 0.6 |
Net Fair Value | $ 2 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Interest rate swaps | ||
Measured at fair value | ||
Net Fair Value | $ (27.6) | $ (12.4) |
Commodity swaps | ||
Measured at fair value | ||
Net Fair Value | 2.6 | 8.4 |
Level 2 | Interest rate swaps | Recurring | ||
Measured at fair value | ||
Net Fair Value | (27.6) | (12.4) |
Level 2 | Commodity swaps | Recurring | ||
Measured at fair value | ||
Net Fair Value | $ 2.6 | $ 8.4 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value | ||
Debt issuance costs | $ 27.4 | $ 29.8 |
Carrying Value | ||
Fair Value | ||
Long-term debt | 4,749 | 4,764.3 |
Fair Value | ||
Fair Value | ||
Long-term debt | $ 3,791.1 | $ 4,444.2 |
Segment Information - Financial
Segment Information - Financial Information and Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting | ||||
Revenue from contracts with customers | $ 767.3 | $ 1,703.1 | $ 1,904.2 | $ 3,480.5 |
Cost of sales | (397.7) | (1,300.1) | (1,153) | (2,663.5) |
Operating expenses | (88.1) | (117.9) | (188.8) | (232.4) |
Gain (loss) on derivative activity | (22.4) | 6.9 | (3.2) | 8.7 |
Segment profit (loss) | 259.1 | 292 | 559.2 | 593.3 |
Depreciation and amortization | (158.2) | (153.7) | (321) | (305.8) |
Goodwill | 190.3 | 190.3 | ||
Impairments | (1.5) | 0 | (169.9) | 0 |
Capital expenditures | 69.2 | 171.6 | 184 | 422.6 |
Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 204.6 | 742.3 | 576.3 | 1,484.9 |
Cost of sales | (138.4) | (680.5) | (452.3) | (1,356.7) |
Operating expenses | (22.7) | (28.4) | (48.2) | (56.2) |
Gain (loss) on derivative activity | 0 | 0 | 0 | 0 |
Segment profit (loss) | 43.5 | 33.4 | 75.8 | 72 |
Depreciation and amortization | (31) | (30.1) | (60.2) | (58) |
Goodwill | 0 | 0 | ||
Impairments | 0 | 0 | ||
Capital expenditures | 46.9 | 52.4 | 132.9 | 148.3 |
North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 106.4 | 149.8 | 227.1 | 324.1 |
Cost of sales | (18.9) | (51) | (45.9) | (124.7) |
Operating expenses | (18.5) | (25.8) | (39) | (51.5) |
Gain (loss) on derivative activity | 0 | 0 | 0 | 0 |
Segment profit (loss) | 69 | 73 | 142.2 | 147.9 |
Depreciation and amortization | (36.4) | (36.9) | (73.6) | (71.2) |
Goodwill | 0 | 0 | ||
Impairments | 0 | 0 | ||
Capital expenditures | 3 | 27 | 7.7 | 31.3 |
Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 179.8 | 299.2 | 399.8 | 618.9 |
Cost of sales | (61.1) | (159.4) | (154.8) | (343.6) |
Operating expenses | (19.4) | (26.1) | (42.3) | (51.5) |
Gain (loss) on derivative activity | 0 | 0 | 0 | 0 |
Segment profit (loss) | 99.3 | 113.7 | 202.7 | 223.8 |
Depreciation and amortization | (54.1) | (47.6) | (110.7) | (93.7) |
Goodwill | 190.3 | 190.3 | ||
Impairments | 0 | 0 | ||
Capital expenditures | 3 | 70.3 | 11.5 | 178.5 |
Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 409.7 | 730.5 | 973.2 | 1,528.6 |
Cost of sales | (312.5) | (627.9) | (772.2) | (1,314.5) |
Operating expenses | (27.5) | (37.6) | (59.3) | (73.2) |
Gain (loss) on derivative activity | 0 | 0 | 0 | 0 |
Segment profit (loss) | 69.7 | 65 | 141.7 | 140.9 |
Depreciation and amortization | (34.6) | (36.9) | (72.4) | (78.7) |
Goodwill | 0 | 0 | ||
Impairments | (1.5) | (169.9) | ||
Capital expenditures | 15.6 | 19.5 | 30.8 | 60.5 |
Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (133.2) | (218.7) | (272.2) | (476) |
Cost of sales | 133.2 | 218.7 | 272.2 | 476 |
Operating expenses | 0 | 0 | 0 | 0 |
Gain (loss) on derivative activity | (22.4) | 6.9 | (3.2) | 8.7 |
Segment profit (loss) | (22.4) | 6.9 | (3.2) | 8.7 |
Depreciation and amortization | (2.1) | (2.2) | (4.1) | (4.2) |
Goodwill | 0 | 0 | ||
Impairments | 0 | 0 | ||
Capital expenditures | 0.7 | 2.4 | 1.1 | 4 |
Product sales | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 532.6 | 1,450.4 | 1,425.5 | 2,981.3 |
Product sales | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 119.3 | 631.8 | 419.6 | 1,248.5 |
Product sales | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 14.6 | 40.6 | 35 | 100.5 |
Product sales | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 34.3 | 93.1 | 92.8 | 193.3 |
Product sales | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 364.4 | 684.9 | 878.1 | 1,439 |
Product sales | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Product sales, Natural gas sales | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 144.4 | 193.8 | 302.3 | 464.3 |
Product sales, Natural gas sales | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 32.4 | (1) | 47.5 | 35.1 |
Product sales, Natural gas sales | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 14.6 | 31.9 | 34.7 | 82.5 |
Product sales, Natural gas sales | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 28.8 | 60.3 | 69.9 | 121.9 |
Product sales, Natural gas sales | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 68.6 | 102.6 | 150.2 | 224.8 |
Product sales, Natural gas sales | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Product sales, NGL sales | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 281.3 | 512.6 | 656.7 | 1,103.7 |
Product sales, NGL sales | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (0.1) | 0.8 | 0.1 | 0.6 |
Product sales, NGL sales | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 8.7 | 0.3 | 18 |
Product sales, NGL sales | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.5 | 4.3 | 1.7 | 13.2 |
Product sales, NGL sales | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 280.9 | 498.8 | 654.6 | 1,071.9 |
Product sales, NGL sales | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Product sales, Crude oil and condensate sales | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 106.9 | 744.1 | 466.5 | 1,413.3 |
Product sales, Crude oil and condensate sales | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 87 | 632 | 372 | 1,212.8 |
Product sales, Crude oil and condensate sales | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Product sales, Crude oil and condensate sales | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 5 | 28.6 | 21.2 | 58.2 |
Product sales, Crude oil and condensate sales | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 14.9 | 83.5 | 73.3 | 142.3 |
Product sales, Crude oil and condensate sales | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Product sales, other | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (0.1) | |||
Product sales, other | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product sales, other | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product sales, other | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (0.1) | |||
Product sales, other | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product sales, other | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | |||
Product sales—related parties | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Product sales—related parties | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 59.5 | 83.7 | 105.5 | 184.9 |
Product sales—related parties | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 14.3 | 24.2 | 33 | 53.7 |
Product sales—related parties | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 56.1 | 104.6 | 123.5 | 230.7 |
Product sales—related parties | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 3.2 | 5.3 | 10 | 8.5 |
Product sales—related parties | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (133.1) | (217.8) | (272) | (477.8) |
Product sales, natural gas sales, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Product sales, natural gas sales, related party | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.4 | 0.4 | ||
Product sales, natural gas sales, related party | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.3 | 0.3 | ||
Product sales, natural gas sales, related party | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Product sales, natural gas sales, related party | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Product sales, natural gas sales, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (0.7) | (0.7) | ||
Product sales, NGL sales, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.1 | 0 | 0 | 0 |
Product sales, NGL sales, related party | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 59.5 | 76.4 | 105.4 | 173.6 |
Product sales, NGL sales, related party | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 13.9 | 22.2 | 31.1 | 50.7 |
Product sales, NGL sales, related party | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 56 | 104.6 | 123.6 | 230.7 |
Product sales, NGL sales, related party | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 3.2 | 5.3 | 10 | 8.5 |
Product sales, NGL sales, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (132.5) | (208.5) | (270.1) | (463.5) |
Product sales, Crude oil and condensate sales, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (0.1) | 0 | 0 | 0 |
Product sales, Crude oil and condensate sales, related party | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 6.9 | 0.1 | 10.9 |
Product sales, Crude oil and condensate sales, related party | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.4 | 1.7 | 1.9 | 2.7 |
Product sales, Crude oil and condensate sales, related party | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.1 | 0 | (0.1) | 0 |
Product sales, Crude oil and condensate sales, related party | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Product sales, Crude oil and condensate sales, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (0.6) | (8.6) | (1.9) | (13.6) |
Midstream services | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 234.7 | 252.7 | 478.7 | 499.2 |
Midstream services | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 25.8 | 26.8 | 51.2 | 51.5 |
Midstream services | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 77.5 | 85 | 159.1 | 169.9 |
Midstream services | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 89.3 | 100.3 | 183.3 | 193.4 |
Midstream services | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 42.1 | 40.6 | 85.1 | 84.4 |
Midstream services | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, Gathering and transportation | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 121.3 | 136.2 | 251.5 | 282.6 |
Midstream services, Gathering and transportation | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 13.1 | 11.3 | 29.4 | 21.6 |
Midstream services, Gathering and transportation | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 44.2 | 49 | 90.1 | 112.6 |
Midstream services, Gathering and transportation | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 52.5 | 59.2 | 108.8 | 114.5 |
Midstream services, Gathering and transportation | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 11.5 | 16.7 | 23.2 | 33.9 |
Midstream services, Gathering and transportation | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, Processing | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 73.2 | 79.5 | 146.9 | 143.3 |
Midstream services, Processing | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 7.5 | 7.3 | 11.8 | 15 |
Midstream services, Processing | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 33 | 35.7 | 68.4 | 56.8 |
Midstream services, Processing | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 32.1 | 35.7 | 65.4 | 69.8 |
Midstream services, Processing | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.6 | 0.8 | 1.3 | 1.7 |
Midstream services, Processing | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, NGL services | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 18.7 | 10 | 38.3 | 21.7 |
Midstream services, NGL services | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, NGL services | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.1 | 0 | 0.1 | 0 |
Midstream services, NGL services | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, NGL services | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 18.6 | 10 | 38.2 | 21.7 |
Midstream services, NGL services | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, Crude services | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 20.6 | 23.4 | 39.7 | 46.4 |
Midstream services, Crude services | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 5 | 5.3 | 9.2 | 10.5 |
Midstream services, Crude services | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, Crude services | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 4.6 | 5.2 | 8.9 | 9.2 |
Midstream services, Crude services | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 11 | 12.9 | 21.6 | 26.7 |
Midstream services, Crude services | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, Other services | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.9 | 3.6 | 2.3 | 5.2 |
Midstream services, Other services | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.2 | 2.9 | 0.8 | 4.4 |
Midstream services, Other services | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.2 | 0.3 | 0.5 | 0.5 |
Midstream services, Other services | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.1 | 0.2 | 0.2 | (0.1) |
Midstream services, Other services | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.4 | 0.2 | 0.8 | 0.4 |
Midstream services, Other services | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services—related parties | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services—related parties | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services—related parties | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services—related parties | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.1 | 1.2 | 0.2 | 1.5 |
Midstream services—related parties | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | (0.3) | 0 | (3.3) |
Midstream services—related parties | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (0.1) | (0.9) | (0.2) | 1.8 |
Midstream Services, NGL services, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream Services, NGL services, related party | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream Services, NGL services, related party | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream Services, NGL services, related party | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | ||
Midstream Services, NGL services, related party | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | (0.3) | (3.3) | ||
Midstream Services, NGL services, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.3 | 3.3 | ||
Midstream services, Crude services, related party | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, Crude services, related party | Permian | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, Crude services, related party | North Texas | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, Crude services, related party | Oklahoma | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0.1 | 1.2 | 0.2 | 1.5 |
Midstream services, Crude services, related party | Louisiana | ||||
Segment Reporting | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Midstream services, Crude services, related party | Corporate | ||||
Segment Reporting | ||||
Revenue from contracts with customers | $ (0.1) | $ (1.2) | $ (0.2) | $ (1.5) |
Segment Information - Reconcili
Segment Information - Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting [Abstract] | ||||
Segment profit | $ 259.1 | $ 292 | $ 559.2 | $ 593.3 |
General and administrative expenses | (23.4) | (31.9) | (54.3) | (70.5) |
Loss on disposition of assets | (5.2) | (0.1) | (4.6) | (0.1) |
Depreciation and amortization | (158.2) | (153.7) | (321) | (305.8) |
Impairments | (1.5) | 0 | (169.9) | 0 |
Loss on secured term loan receivable | 0 | (52.9) | 0 | (52.9) |
Operating income | $ 70.8 | $ 53.4 | $ 9.4 | $ 164 |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Segment Reporting | ||
Assets | $ 8,681.1 | $ 9,134.6 |
Permian | ||
Segment Reporting | ||
Assets | 2,268.5 | 2,281.1 |
North Texas | ||
Segment Reporting | ||
Assets | 1,061.7 | 1,135.8 |
Oklahoma | ||
Segment Reporting | ||
Assets | 2,934.4 | 3,035 |
Louisiana | ||
Segment Reporting | ||
Assets | 2,273.7 | 2,562 |
Corporate | ||
Segment Reporting | ||
Assets | $ 142.8 | $ 120.7 |
Other Information (Details)
Other Information (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Other current assets: | ||
Natural gas and NGLs inventory | $ 39.7 | $ 43.4 |
Prepaid expenses and other | 18.7 | 13.5 |
Other current assets | 58.4 | 56.9 |
Other current liabilities: | ||
Accrued interest | 32 | 32.6 |
Accrued wages and benefits, including taxes | 15.8 | 31.5 |
Accrued ad valorem taxes | 23 | 28.5 |
Capital expenditure accruals | 20.6 | 42.4 |
Retention liability | 11 | 8.7 |
Short-term lease liability | 16 | 21.1 |
Suspense producer payments | 12.1 | 13.8 |
Operating expense accruals | 9.2 | 10.8 |
Other | 17 | 12.3 |
Other current liabilities | $ 156.7 | $ 201.7 |
Uncategorized Items - enlc-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201602Member |