Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | DPM | |
Entity Registrant Name | DCP MIDSTREAM PARTNERS, LP | |
Entity Central Index Key | 1,338,065 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 114,742,948 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1 | $ 2 |
Accounts receivable: | ||
Trade, net of allowance for doubtful accounts of $1 million | 64 | 73 |
Affiliates | 72 | 81 |
Inventories | 37 | 43 |
Unrealized gains on derivative instruments | 48 | 105 |
Other | 1 | 2 |
Total current assets | 223 | 306 |
Property, plant and equipment, net | 3,446 | 3,476 |
Goodwill | 72 | 72 |
Intangible assets, net | 110 | 112 |
Investments in unconsolidated affiliates | 1,486 | 1,493 |
Unrealized gains on derivative instruments | 7 | 9 |
Other long-term assets | 10 | 9 |
Total assets | 5,354 | 5,477 |
Accounts payable: | ||
Trade | 85 | 98 |
Affiliates | 20 | 19 |
Unrealized losses on derivative instruments | 5 | 18 |
Interest Payable, Current | 30 | 19 |
Taxes Payable, Current | 18 | 12 |
Other | 17 | 34 |
Total current liabilities | 175 | 200 |
Long-term debt | 2,377 | 2,424 |
Unrealized losses on derivative instruments | 0 | 1 |
Other long-term liabilities | 48 | 47 |
Total liabilities | $ 2,600 | $ 2,672 |
Commitments and contingent liabilities | ||
Equity: | ||
Limited partners (114,742,948 and 114,742,948 common units issued and outstanding, respectively) | $ 2,713 | $ 2,762 |
General partner | 18 | 18 |
Accumulated other comprehensive loss | (8) | (8) |
Total partners' equity | 2,723 | 2,772 |
Noncontrolling interests | 31 | 33 |
Total equity | 2,754 | 2,805 |
Total liabilities and equity | $ 5,354 | $ 5,477 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 1 | $ 1 |
Common unitholders, units issued | 114,742,948 | 114,740,148 |
Common unitholders, units outstanding | 114,742,948 | 114,740,148 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating revenues: | ||
Sales of natural gas, propane, NGLs and condensate | $ 267 | $ 470 |
Transportation, processing and other | 103 | 79 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 9 | 19 |
Total operating revenues | 379 | 568 |
Operating costs and expenses: | ||
Purchases of natural gas, propane and NGLs | 231 | 402 |
Operating and maintenance expense | 48 | 47 |
Depreciation and amortization expense | 32 | 29 |
General and administrative expense | 21 | 21 |
Total operating costs and expenses | 332 | 499 |
Operating Income (Loss) | 47 | 69 |
Interest expense | (24) | (22) |
Earnings from unconsolidated affiliates | 49 | 23 |
Income before income taxes | 72 | 70 |
Income tax expense | 0 | (1) |
Net income | 72 | 69 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to partners | 72 | 69 |
General partner's interest in net income | (31) | (31) |
Net income allocable to limited partners | $ 41 | $ 38 |
Net Income (Loss), Per Outstanding Limited Partnership and General Partnership Unit, Basic and Diluted, Net of Tax | $ 0.36 | $ 0.33 |
Weighted Average Limited Partnership Units Outstanding, Basic | 114.7 | 114.2 |
Weighted Average Limited Partnership Units Outstanding, Diluted | 114.7 | 114.2 |
Third Party [Member] | ||
Operating revenues: | ||
Sales of natural gas, propane, NGLs and condensate | $ 105 | $ 189 |
Transportation, processing and other | 61 | 56 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 4 | 5 |
Operating costs and expenses: | ||
Purchases of natural gas, propane and NGLs | 208 | 367 |
General and administrative expense | 2 | 3 |
Affiliated Entity [Member] | ||
Operating revenues: | ||
Sales of natural gas, propane, NGLs and condensate | 162 | 281 |
Transportation, processing and other | 42 | 23 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 5 | 14 |
Operating costs and expenses: | ||
Purchases of natural gas, propane and NGLs | 23 | 35 |
General and administrative expense | $ 19 | $ 18 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 72 | $ 69 |
Other comprehensive income: | ||
Reclassification of cash flow hedge losses into earnings | 0 | 1 |
Total other comprehensive income | 0 | 1 |
Total comprehensive income | 72 | 70 |
Total comprehensive income attributable to noncontrolling interests | 0 | 0 |
Total comprehensive income attributable to partners | $ 72 | $ 70 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
OPERATING ACTIVITIES: | ||
Net income | $ 72 | $ 69 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 32 | 29 |
Earnings from unconsolidated affiliates | (49) | (23) |
Distributions from unconsolidated affiliates | 63 | 26 |
Net unrealized losses on derivative instruments | 45 | 43 |
Other, net | 2 | 2 |
Change in operating assets and liabilities, which provided (used) cash, net of effects of acquisitions: | ||
Accounts receivable | 19 | 61 |
Inventories | 6 | 27 |
Accounts payable | (10) | (59) |
Accrued interest | 10 | 12 |
Other current assets and liabilities | (2) | (3) |
Other long-term assets and liabilities | 0 | 4 |
Net cash provided by operating activities | 188 | 188 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (10) | (65) |
Investments in unconsolidated affiliates, net | (8) | (25) |
Net cash used in investing activities | (18) | (90) |
FINANCING ACTIVITIES: | ||
Proceeds from long-term debt | 394 | 162 |
Payments of long-term debt | (442) | 162 |
Proceeds from issuance of common units, net of offering costs | 0 | 31 |
Distributions to limited partners and general partner | (121) | (120) |
Distributions to noncontrolling interests | (2) | (1) |
Net cash used in financing activities | (171) | (90) |
Net change in cash and cash equivalents | (1) | 8 |
Cash and cash equivalents, beginning of period | 2 | 25 |
Cash and cash equivalents, end of period | $ 1 | $ 33 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Limited Partners [Member] | General Partner [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interests [Member] |
Beginning balance at Dec. 31, 2014 | $ 3,026 | $ 2,984 | $ 18 | $ (9) | $ 33 |
Net income | 69 | 38 | 31 | 0 | |
Other comprehensive (loss) income | 1 | 1 | |||
Issuance of common units | 31 | 31 | 0 | 0 | 0 |
Distributions to limited partners and general partner | (120) | (89) | (31) | 0 | 0 |
Distributions to noncontrolling interests | (1) | 0 | 0 | 0 | (1) |
Ending balance at Mar. 31, 2015 | 3,006 | 2,964 | 18 | (8) | 32 |
Beginning balance at Dec. 31, 2015 | 2,805 | 2,762 | 18 | (8) | 33 |
Net income | 72 | 41 | 31 | 0 | |
Other comprehensive (loss) income | 0 | ||||
Distributions to limited partners and general partner | (121) | (90) | (31) | ||
Distributions to noncontrolling interests | (2) | (2) | |||
Ending balance at Mar. 31, 2016 | $ 2,754 | $ 2,713 | $ 18 | $ (8) | $ 31 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Equity (Parenthetical) - shares | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Issuance of common units | 788,033 | ||
Limited Partners [Member] | |||
Issuance of common units | 0 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation DCP Midstream Partners, LP, with its consolidated subsidiaries, or us, we, our or the Partnership, is engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling NGLs and recovering and selling condensate; and transporting, storing and selling propane in wholesale markets. We are a Delaware limited partnership that was formed in August 2005. Our partnership includes our Natural Gas Services, NGL Logistics and Wholesale Propane Logistics segments. For additional information regarding these segments, see Note 13 - Business Segments. Our operations and activities are managed by our general partner, DCP Midstream GP, LP, which in turn is managed by its general partner, DCP Midstream GP, LLC, which we refer to as the General Partner, and is 100% owned by DCP Midstream, LLC. DCP Midstream, LLC and its subsidiaries and affiliates, collectively referred to as DCP Midstream, LLC, is owned 50% by Phillips 66 and 50% by Spectra Energy Corp and its affiliates, or Spectra Energy. DCP Midstream, LLC directs our business operations through its ownership and control of the General Partner. DCP Midstream, LLC’s employees provide administrative support to us and operate most of our assets. DCP Midstream, LLC owns approximately 21.4% of us, including limited partner and general partner interests. The condensed consolidated financial statements include the accounts of the Partnership and all majority-owned subsidiaries where we have the ability to exercise control. Investments in greater than 20% owned affiliates that are not variable interest entities and where we do not have the ability to exercise control, and investments in less than 20% owned affiliates where we have the ability to exercise significant influence, are accounted for using the equity method. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. Conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and notes. Although these estimates are based on management’s best available knowledge of current and expected future events, actual results could differ from those estimates. All intercompany balances and transactions have been eliminated in consolidation. Transactions between us and other DCP Midstream, LLC operations have been included in the condensed consolidated financial statements as transactions between affiliates. The accompanying unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. Accordingly, these condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the respective interim periods. Certain information and note disclosures normally included in our annual financial statements prepared in accordance with GAAP have been condensed or omitted from these interim financial statements pursuant to such rules and regulations, although we believe that the disclosures made are adequate to make the information presented not misleading. Results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . These unaudited condensed consolidated financial statements and other information included in this Quarterly Report on Form 10-Q should be read in conjunction with the 2015 audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015 . |
New Accounting Pronouncements (
New Accounting Pronouncements (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations,” or ASU 2016-08 - In March 2016, the FASB issued ASU 2016-08, which amends certain implementation guidance of FASB ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” , as discussed below. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017, with the option to early adopt for financial statements that have not been issued. We are currently evaluating the potential impact this standard will have on our condensed consolidated financial statements and related disclosures. FASB ASU, 2016-02 “Leases (Topic 842),” or ASU 2016-02 - In February 2016, the FASB issued ASU 2016-02, which requires lessees to recognize a lease liability on a discounted basis and the right of use of a specified asset at the commencement date for all leases. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018, with the option to early adopt for financial statements that have not been issued. We are currently evaluating the potential impact this standard will have on our condensed consolidated financial statements and related disclosures. FASB ASU, 2015-16 “Business Combinations (Topic 805),” or ASU 2015-16 - In September 2015, the FASB issued ASU 2015-16, which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This ASU is effective for interim and annual reporting periods beginning after December 15, 2016, with the option to early adopt for financial statements that have not been issued. The impact of this ASU will be evaluated upon the occurrence of future business combinations. FASB ASU 2015-02 “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” or ASU 2015-02 - In February 2015, the FASB issued ASU 2015-02, which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This ASU is effective for annual reporting periods beginning after December 15, 2015. The adoption of this ASU has been implemented and did not have a material impact on our condensed consolidated results of operations, cash flows and financial position. FASB ASU 2014-09 “Revenue from Contracts with Customers (Topic 606),” or ASU 2014-09 - In May 2014, the FASB issued ASU 2014-09, which supersedes the revenue recognition requirements of Accounting Standards Codification Topic 605 “Revenue Recognition.” This ASU is effective for annual reporting periods beginning after December 15, 2017, with the option to adopt as early as December 15, 2016. We are currently assessing the impact of adoption of this ASU on our condensed consolidated results of operations, cash flows and financial position. |
Agreements and Transactions wit
Agreements and Transactions with Affiliates | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Agreements and Transactions with Affiliates | Agreements and Transactions with Affiliates DCP Midstream, LLC Services Agreement and Other General and Administrative Charges We have entered into a services agreement, as amended, or the Services Agreement, with DCP Midstream, LLC. Under the Services Agreement, we are required to reimburse DCP Midstream, LLC for salaries of operating personnel and employee benefits, as well as capital expenditures, maintenance and repair costs, taxes and other direct costs incurred by DCP Midstream, LLC on our behalf. We also pay DCP Midstream, LLC an annual fee under the Services Agreement for centralized corporate functions performed by DCP Midstream, LLC on our behalf, including legal, accounting, cash management, insurance administration and claims processing, risk management, health, safety and environmental, information technology, human resources, credit, payroll, taxes and engineering. Except with respect to the annual fee, there is no limit on the reimbursements we make to DCP Midstream, LLC under the Services Agreement for other expenses and expenditures incurred or payments made on our behalf. In the event we acquire assets or our business otherwise expands, the annual fee under the Services Agreement is subject to adjustment based on the nature and extent of general and administrative services performed by DCP Midstream, LLC, as well as an annual adjustment based on changes to the Consumer Price Index. Effective January 1, 2015, the annual fee payable under the Services Agreement is $71 million . The following is a summary of the fees we incurred under the Services Agreement, as well as other fees paid to DCP Midstream, LLC: Three Months Ended March 31, 2016 2015 (Millions) Services Agreement $ 18 $ 18 Other fees — DCP Midstream, LLC 1 — Total — DCP Midstream, LLC $ 19 $ 18 In addition to the fees paid pursuant to the Services Agreement, we incurred allocated expenses, including executive compensation, insurance and internal audit fees with DCP Midstream, LLC of $1 million , and less than $1 million , for the three months ended March 31, 2016 , and 2015 , respectively. Commodity Transactions - We sell a portion of our residue gas and NGLs to, purchase natural gas and other NGL products from, and provide gathering, transportation and other services to, DCP Midstream, LLC. Management anticipates continuing to purchase and sell commodities and provide services to DCP Midstream, LLC in the ordinary course of business. In addition, DCP Midstream, LLC conducts derivative activities on our behalf. Spectra Energy Commodity Transactions - We purchase natural gas and other NGL products from, Spectra Energy. Management anticipates continuing to purchase and sell commodities and provide services to Spectra Energy in the ordinary course of business. Summary of Transactions with Affiliates The following table summarizes our transactions with affiliates: Three Months Ended March 31, 2016 2015 (Millions) DCP Midstream, LLC: Sales of natural gas, propane, NGLs and condensate $ 162 $ 281 Transportation, processing and other $ 42 $ 23 Purchases of natural gas, propane and NGLs $ 14 $ 25 Gains from commodity derivative activity, net $ 5 $ 14 General and administrative expense $ 19 $ 18 Spectra Energy: Purchases of natural gas, propane and NGLs $ 9 $ 10 We had balances with affiliates as follows: March 31, December 31, (Millions) DCP Midstream, LLC: Accounts receivable $ 72 $ 81 Accounts payable $ 16 $ 15 Unrealized gains on derivative instruments — current $ 12 $ 32 Unrealized gains on derivative instruments — long-term $ 7 $ 9 Unrealized losses on derivative instruments — current $ 5 $ 18 Unrealized losses on derivative instruments — long-term $ — $ 1 Spectra Energy: Accounts payable $ 4 $ 4 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories were as follows: March 31, December 31, (Millions) Natural gas $ 23 $ 29 NGLs 14 14 Total inventories $ 37 $ 43 We recognize the lower of cost or market adjustments when the carrying value of our inventories exceeds their estimated market value. These non-cash charges are a component of purchases of natural gas, propane and NGLs in the condensed consolidated statements of operations. We recognized $3 million and $4 million in the lower of cost or market adjustments during the three months ended March 31, 2016 , and 2015 respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment A summary of property, plant and equipment by classification is as follows: Depreciable Life March 31, December 31, (Millions) Gathering and transmission systems 20 — 50 Years $ 2,340 $ 2,337 Processing, storage, and terminal facilities 35 — 60 Years 2,362 2,327 Other 3 — 30 Years 66 64 Construction work in progress 82 122 Property, plant and equipment 4,850 4,850 Accumulated depreciation (1,404 ) (1,374 ) Property, plant and equipment, net $ 3,446 $ 3,476 Interest capitalized on construction projects was less than $1 million and $3 million for the three months ended March 31, 2016 , and 2015 , respectively. Depreciation expense was $30 million and $26 million for the three months ended March 31, 2016 and 2015 , respectively. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates The following table summarizes our investments in unconsolidated affiliates: Carrying Value as of Percentage Ownership March 31, December 31, (Millions) DCP Sand Hills Pipeline, LLC 33.33% $ 442 $ 441 Discovery Producer Services LLC 40% 397 406 DCP Southern Hills Pipeline, LLC 33.33% 317 318 Front Range Pipeline LLC 33.33% 170 170 Texas Express Pipeline LLC 10% 95 96 Mont Belvieu Enterprise Fractionator 12.5% 23 25 Panola Pipeline Company, LLC 15% 24 19 Mont Belvieu 1 Fractionator 20% 11 11 Other Various 7 7 Total investments in unconsolidated affiliates $ 1,486 $ 1,493 Earnings (losses) from investments in unconsolidated affiliates were as follows: Three Months Ended March 31, 2016 2015 (Millions) Discovery Producer Services LLC 15 (2 ) DCP Sand Hills Pipeline, LLC 14 11 DCP Southern Hills Pipeline, LLC 7 3 Front Range Pipeline LLC 5 4 Mont Belvieu Enterprise Fractionator 4 4 Mont Belvieu 1 Fractionator 2 1 Texas Express Pipeline LLC 2 2 Total earnings from unconsolidated affiliates $ 49 $ 23 The following tables summarize the combined financial information of our investments in unconsolidated affiliates: Three Months Ended March 31, 2016 2015 (Millions) Statements of operations (a): Operating revenue $ 308 $ 233 Operating expenses $ 128 $ 129 Net income $ 178 $ 103 March 31, December 31, (Millions) Balance sheets (a): Current assets $ 176 $ 182 Long-term assets 5,183 5,200 Current liabilities (140 ) (170 ) Long-term liabilities (231 ) (216 ) Net assets $ 4,988 $ 4,996 (a) In accordance with the Panola joint venture agreement, earnings began to accrue on February 1, 2016. As a result, activity related to Panola is included in the tables above. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Determination of Fair Value Below is a general description of our valuation methodologies for derivative financial assets and liabilities which are measured at fair value. Fair values are generally based upon quoted market prices or prices obtained through external sources, where available. If listed market prices or quotes are not available, we determine fair value based upon a market quote, adjusted by other market-based or independently sourced market data such as historical commodity volatilities, crude oil future yield curves, and/or counterparty specific considerations. These adjustments result in a fair value for each asset or liability under an “exit price” methodology, in line with how we believe a marketplace participant would value that asset or liability. Fair values are adjusted to reflect the credit risk inherent in the transaction as well as the potential impact of liquidating open positions in an orderly manner over a reasonable time period under current conditions. These adjustments may include amounts to reflect counterparty credit quality, the effect of our own creditworthiness, the time value of money and/or the liquidity of the market. • Counterparty credit valuation adjustments are necessary when the market price of an instrument is not indicative of the fair value as a result of the credit quality of the counterparty. Generally, market quotes assume that all counterparties have near zero, or low, default rates and have equal credit quality. Therefore, an adjustment may be necessary to reflect the credit quality of a specific counterparty to determine the fair value of the instrument. We record counterparty credit valuation adjustments on all derivatives that are in a net asset position as of the measurement date in accordance with our established counterparty credit policy, which takes into account any collateral margin that a counterparty may have posted with us as well as any letters of credit that they have provided. • Entity valuation adjustments are necessary to reflect the effect of our own credit quality on the fair value of our net liability positions with each counterparty. This adjustment takes into account any credit enhancements, such as collateral margin we may have posted with a counterparty, as well as any letters of credit that we have provided. The methodology to determine this adjustment is consistent with how we evaluate counterparty credit risk, taking into account our own credit rating, current credit spreads, as well as any change in such spreads since the last measurement date. • Liquidity valuation adjustments are necessary when we are not able to observe a recent market price for financial instruments that trade in less active markets for the fair value to reflect the cost of exiting the position. Exchange traded contracts are valued at market value without making any additional valuation adjustments and, therefore, no liquidity reserve is applied. For contracts other than exchange traded instruments, we mark our positions to the midpoint of the bid/ask spread, and record a liquidity reserve based upon our total net position. We believe that such practice results in the most reliable fair value measurement as viewed by a market participant. We manage our derivative instruments on a portfolio basis and the valuation adjustments described above are calculated on this basis. We believe that the portfolio level approach represents the highest and best use for these assets as there are benefits inherent in naturally offsetting positions within the portfolio at any given time, and this approach is consistent with how a market participant would view and value the assets and liabilities. Although we take a portfolio approach to managing these assets/liabilities, in order to reflect the fair value of any one individual contract within the portfolio, we allocate all valuation adjustments down to the contract level, to the extent deemed necessary, based upon either the notional contract volume, or the contract value, whichever is more applicable. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While we believe that our valuation methods are appropriate and consistent with other market participants, we recognize that the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. We review our fair value policies on a regular basis taking into consideration changes in the marketplace and, if necessary, will adjust our policies accordingly. See Note 9 - Risk Management and Hedging Activities. Valuation Hierarchy Our fair value measurements are grouped into a three-level valuation hierarchy. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows. • Level 1 — inputs are unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2 — inputs include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 — inputs are unobservable and considered significant to the fair value measurement. A financial instrument’s categorization within the hierarchy is based upon the level of judgment involved in the most significant input in the determination of the instrument’s fair value. Following is a description of the valuation methodologies used as well as the general classification of such instruments pursuant to the hierarchy. Commodity Derivative Assets and Liabilities We enter into a variety of derivative financial instruments, which may include over-the-counter, or OTC, instruments, such as natural gas, crude oil or NGL contracts. Within our Natural Gas Services segment, we typically use OTC derivative contracts in order to mitigate a portion of our exposure to natural gas, NGL and condensate price changes. We also may enter into natural gas derivatives to lock in margin around our storage and transportation assets. These instruments are generally classified within Level 2. Depending upon market conditions and our strategy, we may enter into OTC derivative positions with a significant time horizon to maturity, and market prices for these OTC derivatives may only be readily observable for a portion of the duration of the instrument. In order to calculate the fair value of these instruments, readily observable market information is utilized to the extent that it is available; however, in the event that readily observable market data is not available, we may interpolate or extrapolate based upon observable data. In instances where we utilize an interpolated or extrapolated value, and it is considered significant to the valuation of the contract as a whole, we would classify the instrument within Level 3. Within our Wholesale Propane Logistics segment, we may enter into a variety of financial instruments to either secure sales or purchase prices, or capture a variety of market opportunities. Since financial instruments for NGLs tend to be counterparty and location specific, we primarily use the OTC derivative instrument markets, which are not as active and liquid as exchange traded instruments. Market quotes for such contracts may only be available for short dated positions (up to six months), and an active market itself may not exist beyond such time horizon. Contracts entered into with a relatively short time horizon for which prices are readily observable in the OTC market are generally classified within Level 2. Contracts with a longer time horizon, for which we internally generate a forward curve to value such instruments, are generally classified within Level 3. The internally generated curve may utilize a variety of assumptions including, but not limited to, data obtained from third party pricing services, historical and future expected relationship of NGL prices to crude oil prices, the knowledge of expected supply sources coming on line, expected weather trends within certain regions of the United States, and the future expected demand for NGLs. Each instrument is assigned to a level within the hierarchy at the end of each financial quarter depending upon the extent to which the valuation inputs are observable. Generally, an instrument will move toward a level within the hierarchy that requires a lower degree of judgment as the time to maturity approaches, and as the markets in which the asset trades will likely become more liquid and prices more readily available in the market, thus reducing the need to rely upon our internally developed assumptions. However, the level of a given instrument may change, in either direction, depending upon market conditions and the availability of market observable data. Interest Rate Derivative Assets and Liabilities We may use interest rate swap agreements as part of our overall capital strategy. These instruments would effectively exchange a portion of our existing floating rate debt for fixed-rate debt. Historically, our swaps have been generally priced based upon a London Interbank Offered Rate, or LIBOR, instrument with similar duration, adjusted by the credit spread between our company and the LIBOR instrument. Given that a portion of the swap value is derived from the credit spread, which may be observed by comparing similar assets in the market, these instruments are classified within Level 2. Default risk on either side of the swap transaction is also considered in the valuation. We record counterparty credit and entity valuation adjustments in the valuation of our interest rate swaps; however, these reserves are not considered to be a significant input to the overall valuation. Nonfinancial Assets and Liabilities We utilize fair value to perform impairment tests as required on our property, plant and equipment; goodwill; and long-lived intangible assets. Assets and liabilities acquired in third party business combinations are recorded at their fair value as of the date of acquisition. The inputs used to determine such fair value are primarily based upon internally developed cash flow models and would generally be classified within Level 3 in the event that we were required to measure and record such assets at fair value within our condensed consolidated financial statements. Additionally, we use fair value to determine the inception value of our asset retirement obligations. The inputs used to determine such fair value are primarily based upon costs incurred historically for similar work, as well as estimates from independent third parties for costs that would be incurred to restore leased property to the contractually stipulated condition, and would generally be classified within Level 3. The following table presents the financial instruments carried at fair value as of March 31, 2016 and December 31, 2015 , by condensed consolidated balance sheet caption and by valuation hierarchy, as described above: March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Carrying Value Level 1 Level 2 Level 3 Total Carrying Value (Millions) Current assets: Commodity derivatives (a) $ — $ 48 $ — $ 48 $ — $ 83 $ 22 $ 105 Short-term investments (b) $ 1 $ — $ — $ 1 $ 2 $ — $ — $ 2 Long-term assets: Commodity derivatives (c) $ — $ 7 $ — $ 7 $ — $ 9 $ — $ 9 Current liabilities: Commodity derivatives (d) $ — $ (5 ) $ — $ (5 ) $ — $ (18 ) $ — $ (18 ) Long-term liabilities: Commodity derivatives (e) $ — $ — $ — $ — $ — $ (1 ) $ — $ (1 ) (a) Included in current unrealized gains on derivative instruments in our condensed consolidated balance sheets. (b) Includes short-term money market securities included in cash and cash equivalents in our condensed consolidated balance sheets. (c) Included in long-term unrealized gains on derivative instruments in our condensed consolidated balance sheets. (d) Included in current unrealized losses on derivative instruments in our condensed consolidated balance sheets. (e) Included in long-term unrealized losses on derivative instruments in our condensed consolidated balance sheets. Changes in Levels 1 and 2 Fair Value Measurements The determination to classify a financial instrument within Level 1 or Level 2 is based upon the availability of quoted prices for identical or similar assets and liabilities in active markets. Depending upon the information readily observable in the market, and/or the use of identical or similar quoted prices, which are significant to the overall valuation, the classification of any individual financial instrument may differ from one measurement date to the next. To qualify as a transfer, the asset or liability must have existed in the previous reporting period and moved into a different level during the current period. In the event that there is a movement between the classification of an instrument as Level 1 or 2, the transfer would be reflected in a table as Transfers into or out of Level 1 and Level 2. During the three months ended March 31, 2016 and 2015 , there were no transfers into or out of Level 1 and Level 2 of the fair value hierarchy. Changes in Level 3 Fair Value Measurements The tables below illustrate a rollforward of the amounts included in our condensed consolidated balance sheets for derivative financial instruments that we have classified within Level 3. Since financial instruments classified as Level 3 typically include a combination of observable components (that is, components that are actively quoted and can be validated to external sources) and unobservable components, the gains and losses in the table below may include changes in fair value due in part to observable market factors, or changes to our assumptions on the unobservable components. Depending upon the information readily observable in the market, and/or the use of unobservable inputs, which are significant to the overall valuation, the classification of any individual financial instrument may differ from one measurement date to the next. The significant unobservable inputs used in determining fair value include adjustments by other market-based or independently sourced market data such as historical commodity volatilities, crude oil future yield curves, and/or counterparty specific considerations. In the event that there is a movement to/from the classification of an instrument as Level 3, we would reflect such items in the table below within the “Transfers into/out of Level 3” captions. We manage our overall risk at the portfolio level and in the execution of our strategy, we may use a combination of financial instruments, which may be classified within any level. Since Level 1 and Level 2 risk management instruments are not included in the rollforward below, the gains or losses in the table do not reflect the effect of our total risk management activities. Commodity Derivative Instruments Current Assets Long- Term Assets Current Liabilities Long- Term Liabilities (Millions) Three months ended March 31, 2016 (a): Beginning balance $ 22 $ — $ — $ — Settlements (22 ) — — — Ending balance $ — $ — $ — $ — Three months ended March 31, 2015 (a): Beginning balance $ 138 $ 18 $ — $ — Net unrealized gains (losses) included in earnings (b) 20 (18 ) — — Settlements (40 ) — — — Ending balance $ 118 $ — $ — $ — Net unrealized gains (losses) on derivatives still held included in earnings (b) $ 20 $ (18 ) $ — $ — (a) There were no purchases, issuances or sales of derivatives or transfers into/out of Level 3 for the three months ended March 31, 2016 and 2015 . (b) Represents the amount of total gains or losses for the period, included in gains or losses from commodity derivative activity, net. Estimated Fair Value of Financial Instruments Valuation of a contract’s fair value is validated by an internal group independent of the marketing group. While common industry practices are used to develop valuation techniques, changes in pricing methodologies or the underlying assumptions could result in significantly different fair values and income recognition. When available, quoted market prices or prices obtained through external sources are used to determine a contract’s fair value. For contracts with a delivery location or duration for which quoted market prices are not available, fair value is determined based on pricing models developed primarily from historical and expected relationship with quoted market prices. Values are adjusted to reflect the credit risk inherent in the transaction as well as the potential impact of liquidating open positions in an orderly manner over a reasonable time period under current conditions. Changes in market prices and management estimates directly affect the estimated fair value of these contracts. Accordingly, it is reasonably possible that such estimates may change in the near term. The fair value of our interest rate swaps, if any, and commodity non-trading derivatives is based on prices supported by quoted market prices and other external sources and prices based on models and other valuation methods. The “prices supported by quoted market prices and other external sources” category includes our interest rate swaps, if any, our NGL and crude oil swaps and our NYMEX positions in natural gas. In addition, this category includes our forward positions in natural gas for which our forward price curves are obtained from a third party pricing service and then validated through an internal process which includes the use of independent broker quotes. This category also includes our forward positions in NGLs at points for which OTC broker quotes for similar assets or liabilities are available for the full term of the instrument. This category also includes “strip” transactions whose pricing inputs are directly or indirectly observable from external sources and then modeled to daily or monthly prices as appropriate. The “prices based on models and other valuation methods” category includes the value of transactions for which inputs to the fair value of the instrument are unobservable in the marketplace and are considered significant to the overall fair value of the instrument. The fair value of these instruments may be based upon an internally developed price curve, which was constructed as a result of the long dated nature of the transaction or the illiquidity of the specific market point. We have determined fair value amounts using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. The use of different market assumptions and/or estimation methods may have a material effect on the estimated fair value amounts. The fair value of accounts receivable, accounts payable and short-term borrowings are not materially different from their carrying amounts because of the short-term nature of these instruments or the stated rates approximating market rates. Derivative instruments are carried at fair value. We determine the fair value of our fixed-rate Senior Notes based on quotes obtained from bond dealers. We determine the fair value of borrowings under our Amended and Restated Credit Agreement based upon the discounted present value of expected future cash flows, taking into account the difference between the contractual borrowing spread and the spread for similar credit facilities available in the marketplace. We classify the fair values of our outstanding debt balances within Level 2 of the valuation hierarchy. As of March 31, 2016 and December 31, 2015 , the carrying value and fair value of our long-term fixed-rate Senior Notes, including current maturities, and our Amended and Restated Credit Agreement were as follows: March 31, 2016 December 31, 2015 Carrying Value (a) Fair Value Carrying Value (a) Fair Value (Millions) Senior Notes $ 2,064 $ 1,770 $ 2,063 $ 1,650 Amended and Restated Credit Agreement $ 327 $ 327 $ 375 $ 375 (a) Excludes unamortized issuance costs. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt March 31, December 31, (Millions) Amended and Restated Credit Agreement Revolving credit facility, weighted-average variable interest rate of 1.72% and 1.57%, as of March 31, 2016 and December 31, 2015, respectively, due May 1, 2019 $ 327 $ 375 Debt Securities Issued November 27, 2012, interest at 2.50% payable semi-annually, due December 1, 2017 500 500 Issued March 13, 2014, interest at 2.70% payable semi-annually, due April 1, 2019 325 325 Issued March 13, 2012, interest at 4.95% payable semi-annually, due April 1, 2022 350 350 Issued March 14, 2013, interest at 3.875% payable semi-annually, due March 15, 2023 500 500 Issued March 13, 2014, interest at 5.60% payable semi-annually, due April 1, 2044 400 400 Unamortized issuance costs (14 ) (14 ) Unamortized discount (11 ) (12 ) Total long-term debt $ 2,377 $ 2,424 Amended and Restated Credit Agreement On May 1, 2014, we entered into a $1.25 billion amended and restated senior unsecured revolving credit agreement that matures on May 1, 2019 , or the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement is used for working capital requirements and other general partnership purposes including acquisitions. Our cost of borrowing under the Amended and Restated Credit Agreement is determined by a ratings-based pricing grid. Indebtedness under the Amended and Restated Credit Agreement bears interest at either: (1) LIBOR, plus an applicable margin of 1.275% based on our current credit rating; or (2) (a) the base rate which shall be the higher of Wells Fargo Bank N.A.’s prime rate, the Federal Funds rate, plus 0.50% or the LIBOR Market Index rate, plus 1% , plus (b) an applicable margin of 0.275% based on our current credit rating. The Amended and Restated Credit Agreement incurs an annual facility fee of 0.225% based on our current credit rating. This fee is paid on drawn and undrawn portions of the $1.25 billion Amended and Restated Credit Agreement. As of March 31, 2016 , we had unused borrowing capacity of $922 million , net of letters of credit, under the Amended and Restated Credit Agreement, all of which was available for working capital and other general partnership purposes. Our borrowing capacity may be limited by financial covenants set forth in the Amended and Restated Credit Agreement. Except in the case of a default, amounts borrowed under our Amended and Restated Credit Agreement will not become due prior to the May 1, 2019 maturity date. The Amended and Restated Credit Agreement requires us to maintain a leverage ratio (the ratio of our consolidated indebtedness to our consolidated EBITDA, in each case as is defined by the Amended and Restated Credit Agreement) of not more than 5.0 to 1.0 , and following the consummation of qualifying acquisitions, not more than 5.5 to 1.0 , on a temporary basis for three consecutive quarters, including the quarter in which such acquisition is consummated. The future maturities of long-term debt in the year indicated are as follows: Debt Maturities (Millions) 2017 $ 500 2018 — 2019 652 2020 — 2021 — Thereafter 1,250 2,402 Unamortized issuance costs (14 ) Unamortized discount (11 ) Total $ 2,377 |
Risk Management and Hedging Act
Risk Management and Hedging Activities | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management and Hedging Activities | Risk Management and Hedging Activities Our day-to-day operations expose us to a variety of risks including but not limited to changes in the prices of commodities that we buy or sell, changes in interest rates, and the creditworthiness of each of our counterparties. We manage certain of these exposures with either physical or financial transactions. We have established a comprehensive risk management policy and a risk management committee, or the Risk Management Committee, to monitor and manage market risks associated with commodity prices and counterparty credit. The Risk Management Committee is composed of senior executives who receive regular briefings on positions and exposures, credit exposures and overall risk management in the context of market activities. The Risk Management Committee is responsible for the overall management of credit risk and commodity price risk, including monitoring exposure limits. The following describes each of the risks that we manage. Commodity Price Risk Cash Flow Protection Activities — We are exposed to the impact of market fluctuations in the prices of natural gas, NGLs and condensate as a result of our gathering, processing, sales and storage activities. For gathering, processing and storage services, we may receive cash or commodities as payment for these services, depending on the contract type. We enter into derivative financial instruments to mitigate a portion of the risk of weakening natural gas, NGL and condensate prices associated with our gathering, processing and sales activities, thereby stabilizing our cash flows. We have mitigated a portion of our expected commodity price risk associated with our gathering, processing and sales activities through 2017 with commodity derivative instruments. Our commodity derivative instruments used for our hedging program are a combination of direct NGL product, crude oil, and natural gas hedges. Due to the limited liquidity and tenor of the NGL derivative market, we have used crude oil swaps to mitigate a portion of our commodity price exposure to NGLs. Historically, prices of NGLs have generally been related to crude oil prices; however, there are periods of time when NGL pricing may be at a greater discount to crude oil, resulting in additional exposure to NGL commodity prices. The relationship of NGLs to crude oil continues to be lower than historical relationships. When our crude oil swaps become short-term in nature, we have periodically converted certain crude oil derivatives to NGL derivatives by entering into offsetting crude oil swaps while adding NGL swaps. Our crude oil and NGL transactions are primarily accomplished through the use of forward contracts that effectively exchange our floating price risk for a fixed price. The type of instrument that we use to mitigate a portion of our risk may vary depending upon our risk management objective. These transactions are not designated as hedging instruments for accounting purposes and the change in fair value is reflected within our condensed consolidated statements of operations as a gain or a loss on commodity derivative activity. Our Wholesale Propane Logistics segment is generally designed with the intent to establish stable margins by entering into supply arrangements that specify prices based on established floating price indices and by entering into sales agreements that provide for floating prices that are tied to our variable supply costs plus a margin. To the extent possible, we match the pricing of our supply portfolio to our sales portfolio in order to lock in value and reduce our overall commodity price risk. However, to the extent that we carry propane inventories or our sales and supply arrangements are not aligned, we are exposed to market variables and commodity price risk. We manage the commodity price risk of our supply portfolio and sales portfolio with both physical and financial transactions, including fixed price sales. While the majority of our sales and purchases in this segment are index-based, occasionally, we may enter into fixed price sales agreements in the event that a propane distributor desires to purchase propane from us on a fixed price basis. In such cases, we may manage this risk with derivatives that allow us to swap our fixed price risk to market index prices that are matched to our market index supply costs. In addition, we may use financial derivatives to manage the value of our propane inventories. These transactions are not designated as hedging instruments for accounting purposes and any change in fair value is reflected in the current period within our condensed consolidated statements of operations as a gain or loss on commodity derivative activity. Our portfolio of commodity derivative activity is primarily accounted for using the mark-to-market method of accounting, whereby changes in fair value are recorded directly to the condensed consolidated statements of operations; however, depending upon our risk profile and objectives, in certain limited cases, we may execute transactions that qualify for the hedge method of accounting. Natural Gas Storage and Pipeline Asset Based Commodity Derivative Program — Our natural gas storage and pipeline assets are exposed to certain risks including changes in commodity prices. We manage commodity price risk related to our natural gas storage and pipeline assets through our commodity derivative program. The commercial activities related to our natural gas storage and pipeline assets primarily consist of the purchase and sale of gas and associated time spreads and basis spreads. A time spread transaction is executed by establishing a long gas position at one point in time and establishing an equal short gas position at a different point in time. Time spread transactions allow us to lock in a margin supported by the injection, withdrawal, and storage capacity of our natural gas storage assets. We may execute basis spread transactions to mitigate the risk of sale and purchase price differentials across our system. A basis spread transaction allows us to lock in a margin on our physical purchases and sales of gas, including injections and withdrawals from storage. We typically use swaps to execute these transactions, which are not designated as hedging instruments and are recorded at fair value with changes in fair value recorded in the current period condensed consolidated statements of operations. While gas held in our storage locations is recorded at the lower of average cost or market, the derivative instruments that are used to manage our storage facilities are recorded at fair value and any changes in fair value are currently recorded in our condensed consolidated statements of operations. Even though we may have economically hedged our exposure and locked in a future margin, the use of lower-of-cost-or-market accounting for our physical inventory and the use of mark-to-market accounting for our derivative instruments may subject our earnings to market volatility. Commodity Cash Flow Hedges — In order for storage facilities to remain operational, a minimum level of base gas must be maintained in each storage cavern, which is capitalized on our condensed consolidated balance sheets as a component of property, plant and equipment, net. During construction or expansion of our storage caverns, we may execute a series of derivative financial instruments to mitigate a portion of the risk associated with the forecasted purchase of natural gas when we bring the storage caverns to operation. These derivative financial instruments may be designated as cash flow hedges. While the cash paid upon settlement of these hedges economically fixes the cash required to purchase the base gas, the deferred losses or gains would remain in accumulated other comprehensive income, or AOCI, until the cavern is emptied and the base gas is sold. The balance in AOCI of our previously settled base gas cash flow hedges was in a loss position of $6 million as of March 31, 2016 . Interest Rate Risk We enter into debt arrangements that have either fixed or floating rates, therefore we are exposed to market risks related to changes in interest rates. We periodically use interest rate swaps to convert our floating rate debt to fixed-rate debt or to convert our fixed-rate debt to floating rate debt. Our primary goals include: (1) maintaining an appropriate ratio of fixed-rate debt to floating-rate debt; (2) reducing volatility of earnings resulting from interest rate fluctuations; and (3) locking in attractive interest rates. The balance in AOCI of our previously settled interest rate swap cash flow hedges was in a loss position of $3 million as of March 31, 2016 . Contingent Credit Features Each of the above risks is managed through the execution of individual contracts with a variety of counterparties. Certain of our derivative contracts may contain credit-risk related contingent provisions that may require us to take certain actions in certain circumstances. We have International Swaps and Derivatives Association, or ISDA, contracts which are standardized master legal arrangements that establish key terms and conditions which govern certain derivative transactions. These ISDA contracts contain standard credit-risk related contingent provisions. Some of the provisions we are subject to are outlined below. • If we were to have an effective event of default under our Amended and Restated Credit Agreement that occurs and is continuing, our ISDA counterparties may have the right to request early termination and net settlement of any outstanding derivative liability positions. • Our ISDA counterparties generally have collateral thresholds of zero, requiring us to fully collateralize any commodity contracts in a net liability position, when our credit rating is below investment grade. • Additionally, in some cases, our ISDA contracts contain cross-default provisions that could constitute a credit-risk related contingent feature. These provisions apply if we default in making timely payments under other credit arrangements and the amount of the default is above certain predefined thresholds, which are significantly high and are generally consistent with the terms of our Amended and Restated Credit Agreement. As of March 31, 2016 , we were not a party to any agreements that would trigger the cross-default provisions. Our commodity derivative contracts that are not governed by ISDA contracts do not have any credit-risk related contingent features. Depending upon the movement of commodity prices and interest rates, each of our individual contracts with counterparties to our commodity derivative instruments or to our interest rate swap instruments are in either a net asset or net liability position. As of March 31, 2016 , all of our individual commodity derivative contracts that contain credit-risk related contingent features were in a net asset position. If we were required to net settle our position with an individual counterparty, due to a credit-risk related event, our ISDA contracts may permit us to net all outstanding contracts with that counterparty, whether in a net asset or net liability position, as well as any cash collateral already posted. As of March 31, 2016 , we were not required to post additional collateral or offset net liability contracts with contracts in a net asset position because all of our commodity derivative contracts that contain credit-risk related contingent features were in a net asset position. Offsetting Certain of our derivative instruments are subject to a master netting or similar arrangement, whereby we may elect to settle multiple positions with an individual counterparty through a single net payment. Each of our individual derivative instruments are presented on a gross basis on the condensed consolidated balance sheets, regardless of our ability to net settle our positions. Instruments that are governed by agreements that include net settle provisions allow final settlement, when presented with a termination event, of outstanding amounts by extinguishing the mutual debts owed between the parties in exchange for a net amount due. We have trade receivables and payables associated with derivative instruments, subject to master netting or similar agreements, which are not included in the table below. The following summarizes the gross and net amounts of our derivative instruments: March 31, 2016 December 31, 2015 Gross Amounts of Assets and (Liabilities) Presented in the Balance Sheet Amounts Not Offset in the Balance Sheet - Financial Instruments (a) Net Amount Gross Amounts of Assets and (Liabilities) Presented in the Balance Sheet Amounts Not Offset in the Balance Sheet - Financial Instruments (a) Net Amount (Millions) Assets: Commodity derivatives $ 55 $ (5 ) $ 50 $ 114 $ (19 ) $ 95 Liabilities: Commodity derivatives $ (5 ) $ 5 $ — $ (19 ) $ 19 $ — (a) There is no cash collateral pledged or received against these positions. Summarized Derivative Information The fair value of our derivative instruments that are marked-to-market each period, as well as the location of each within our condensed consolidated balance sheets, by major category, is summarized below. We have no derivative instruments that are designated as hedging instruments for accounting purposes as of March 31, 2016 and December 31, 2015 . Balance Sheet Line Item March 31, December 31, Balance Sheet Line Item March 31, December 31, (Millions) (Millions) Derivative Assets Not Designated as Hedging Instruments: Derivative Liabilities Not Designated as Hedging Instruments: Commodity derivatives: Commodity derivatives: Unrealized gains on derivative instruments — current $ 48 $ 105 Unrealized losses on derivative instruments — current $ (5 ) $ (18 ) Unrealized gains on derivative instruments — long-term 7 9 Unrealized losses on derivative instruments — long-term — (1 ) Total $ 55 $ 114 Total $ (5 ) $ (19 ) The following summarizes the balance and activity within AOCI relative to our interest rate, commodity and foreign currency cash flow hedges as of and for the three months ended March 31, 2016 : Interest Commodity Foreign Total (Millions) Net deferred (losses) gains in AOCI (beginning balance) $ (3 ) $ (6 ) $ 1 $ (8 ) Net deferred (losses) gains in AOCI (ending balance) $ (3 ) $ (6 ) $ 1 $ (8 ) (a) Relates to Discovery, an unconsolidated affiliate. For the three months ended March 31, 2016 , no derivative losses attributable to the ineffective portion or to amounts excluded from effectiveness testing were recognized in gains or losses from commodity derivative activity, net or interest expense in our condensed consolidated statements of operations. For the three months ended March 31, 2016 , no derivative losses were reclassified from AOCI to gains or losses from commodity derivative activity, net or interest expense as a result of the discontinuance of cash flow hedges related to certain forecasted transactions that are not probable of occurring. The following summarizes the balance and activity within AOCI relative to our interest rate, commodity and foreign currency cash flow hedges as of and for the three months ended March 31, 2015 : Interest Commodity Foreign Total (Millions) Net deferred (losses) gains in AOCI (beginning balance) $ (4 ) $ (6 ) $ 1 $ (9 ) Losses reclassified from AOCI to earnings — effective portion 1 (b) — — 1 Net deferred (losses) gains in AOCI (ending balance) $ (3 ) $ (6 ) $ 1 $ (8 ) (a) Relates to Discovery, an unconsolidated affiliate. (b) Included in interest expense in our condensed consolidated statements of operations. For the three months ended March 31, 2015 , no derivative losses attributable to the ineffective portion or to amounts excluded from effectiveness testing were recognized in gains or losses from commodity derivative activity, net or interest expense in our condensed consolidated statements of operations. For the three months ended March 31, 2015 , no derivative losses were reclassified from AOCI to gains or losses from commodity derivative activity, net or interest expense as a result of the discontinuance of cash flow hedges related to certain forecasted transactions that are not probable of occurring. Changes in value of derivative instruments, for which the hedge method of accounting has not been elected from one period to the next, are recorded in the condensed consolidated statements of operations. The following summarizes these amounts and the location within the condensed consolidated statements of operations that such amounts are reflected: Commodity Derivatives: Statements of Operations Line Item Three Months Ended March 31, 2016 2015 (Millions) Third party: Realized gains $ 40 $ 7 Unrealized losses (36 ) (2 ) Gains from commodity derivative activity, net $ 4 $ 5 Affiliates: Realized gains $ 14 $ 54 Unrealized losses (9 ) (40 ) Gains from commodity derivative activity, net —affiliates $ 5 $ 14 We do not have any derivative financial instruments that qualify as a hedge of a net investment. The following tables represent, by commodity type, our net long or short positions that are expected to partially or entirely settle in each respective year. To the extent that we have long dated derivative positions that span multiple calendar years, the contract will appear in more than one line item in the tables below. March 31, 2016 Crude Oil Natural Gas Natural Gas Liquids Natural Gas Basis Swaps Year of Expiration Net Short Position (Bbls) Net Short Position (MMBtu) Net Short Position (Bbls) Net Long Position (MMBtu) 2016 (1,100,000 ) (9,282,500 ) (180,000 ) 2,060,000 2017 — (12,817,500 ) — 1,800,000 March 31, 2015 Crude Oil Natural Gas Natural Gas Liquids Natural Gas Basis Swaps Year of Expiration Net Short Position (Bbls) Net Short Position (MMBtu) Net Short Position (Bbls) Net Long Position (MMBtu) 2015 (561,825 ) (12,429,125 ) (4,231,200 ) 2,675,000 2016 (561,922 ) (5,668,564 ) (813,267 ) 1,690,000 2017 — (6,387,500 ) — — |
Partnership Equity and Distribu
Partnership Equity and Distributions | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Partnership Equity and Distributions | Partnership Equity and Distributions During the three months ended March 31, 2016 , we issued no common units pursuant to our 2014 equity distribution agreement. As of March 31, 2016 , approximately $349 million of common units remained available for sale pursuant to our 2014 equity distribution agreement. During the three months ended March 31, 2015 , we issued 788,033 common units pursuant to our 2014 equity distribution agreement and received proceeds of $31 million , net of commissions and offering costs of less than $1 million . The following table presents our cash distributions paid in 2016 and 2015 : Payment Date Per Unit Distribution Total Cash Distribution (Millions) February 12, 2016 $ 0.7800 $ 121 November 13, 2015 $ 0.7800 $ 120 August 14, 2015 $ 0.7800 $ 121 May 15, 2015 $ 0.7800 $ 121 February 13, 2015 $ 0.7800 $ 120 |
Net Income or Loss per Limited
Net Income or Loss per Limited Partner Unit | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income or Loss per Limited Partner Unit | Net Income or Loss per Limited Partner Unit Basic and diluted net income or loss per limited partner unit, or LPU, is calculated by dividing net income or loss allocable to limited partners, by the weighted-average number of outstanding LPUs during the period. Diluted net income or loss per LPU is computed based on the weighted average number of units plus the effect of dilutive potential units outstanding during the period using the two-class method. Dilutive potential units include outstanding awards under our Long-Term Incentive Plan. The dilutive effect of unit-based awards was 1,604 and 11,573 equivalent units during the three months ended March 31, 2016 , and 2015 respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Litigation — We are not a party to any significant legal proceedings, but are a party to various administrative and regulatory proceedings and commercial disputes that have arisen in the ordinary course of our business. Management currently believes that the ultimate resolution of the foregoing matters, taken as a whole, and after consideration of amounts accrued, insurance coverage or other indemnification arrangements, will not have a material adverse effect on our condensed consolidated results of operations, financial position, or cash flow. Environmental — The operation of pipelines, plants and other facilities for gathering, transporting, processing, treating, or storing natural gas, NGLs and other products is subject to stringent and complex laws and regulations pertaining to health, safety and the environment. As an owner or operator of these facilities, we must comply with laws and regulations at the federal, state and local levels that relate to air and water quality, hazardous and solid waste management and disposal, and other environmental matters. The cost of planning, designing, constructing and operating pipelines, plants, and other facilities incorporates compliance with environmental laws and regulations and safety standards. In addition, there is increasing focus (i) from city, state and federal regulatory officials and through litigation, on hydraulic fracturing and the real or perceived environmental impacts of this technique, which indirectly presents some risk to our available supply of natural gas, and (ii) from state and federal regulatory officials regarding the emission of greenhouse gases which could impose regulatory burdens and increase the cost of our operations. Failure to comply with these various health, safety and environmental laws and regulations may trigger a variety of administrative, civil and potentially criminal enforcement measures, including citizen suits, which can include the assessment of monetary penalties, the imposition of remedial requirements, and the issuance of injunctions or restrictions on operation. Management believes that, based on currently known information, compliance with these laws and regulations will not have a material adverse effect on our condensed consolidated results of operations, financial position or cash flows. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Our operations are located in the United States and are organized into three reporting segments: Natural Gas Services; NGL Logistics; and Wholesale Propane Logistics. Our chief operating decision maker regularly reviews financial information about our operating segments, which are aggregated into the reporting units presented, in deciding how to allocate resources and evaluate performance. Natural Gas Services — Our Natural Gas Services segment provides services that include gathering, compressing, treating, processing, transporting and storing natural gas, and fractionating NGLs. The segment consists of our Eagle Ford system, East Texas system, Southeast Texas system, Michigan system, Northern Louisiana system, Southern Oklahoma system, Wyoming system, DJ Basin system, 75% interest in the Piceance system and 40% interest in Discovery. NGL Logistics — Our NGL Logistics segment provides services that include transportation, storage and fractionation of NGLs. The segment consists of our storage facility in Michigan, the DJ Basin fractionators, 12.5% interest in the Mont Belvieu Enterprise fractionator, 20% interest in the Mont Belvieu 1 fractionator, 10% interest in the Texas Express intrastate pipeline, 15% interest in the Panola intrastate pipeline, 33.33% interests in the Southern Hills, Sand Hills and Front Range pipelines, the Black Lake and Wattenberg interstate pipelines and the Seabreeze and Wilbreeze intrastate pipelines. Wholesale Propane Logistics — Our Wholesale Propane Logistics segment provides services that include the receipt of propane and other liquefied petroleum gases by pipeline, rail or ship to our terminals that store and deliver the product to distributors. The segment consists of 6 rail terminals, one marine terminal, one pipeline terminal and access to several open-access pipeline terminals. These segments are monitored separately by management for performance against our internal forecast and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Gross margin is a performance measure utilized by management to monitor the operations of each segment. The following tables set forth our segment information: Three Months Ended March 31, 2016 : Natural Gas Services NGL Logistics Wholesale Propane Logistics Other Total (Millions) Total operating revenue $ 305 $ 21 $ 53 $ — $ 379 Gross margin (a) $ 111 $ 21 $ 16 $ — $ 148 Operating and maintenance expense (40 ) (5 ) (3 ) — (48 ) Depreciation and amortization expense (29 ) (2 ) (1 ) — (32 ) General and administrative expense — — — (21 ) (21 ) Earnings from unconsolidated affiliates 15 34 — — 49 Interest expense — — — (24 ) (24 ) Net income (loss) $ 57 $ 48 $ 12 $ (45 ) $ 72 Net income attributable to noncontrolling interests — — — — — Net income (loss) attributable to partners $ 57 $ 48 $ 12 $ (45 ) $ 72 Non-cash derivative mark-to-market (b) $ (45 ) $ — $ — $ — $ (45 ) Non-cash lower of cost or market adjustments $ 3 $ — $ — $ — $ 3 Capital expenditures $ 9 $ — $ 1 $ — $ 10 Investments in unconsolidated affiliates, net $ — $ 8 $ — $ — $ 8 Three Months Ended March 31, 2015 : Natural Gas NGL Logistics Wholesale Propane Logistics Other Total (Millions) Total operating revenue $ 440 $ 18 $ 110 $ — $ 568 Gross margin (a) $ 119 $ 18 $ 29 $ — $ 166 Operating and maintenance expense (40 ) (4 ) (3 ) — (47 ) Depreciation and amortization expense (26 ) (2 ) (1 ) — (29 ) General and administrative expense — — — (21 ) (21 ) Earnings from unconsolidated affiliates (2 ) 25 — — 23 Interest expense — — — (22 ) (22 ) Income tax expense — — — (1 ) (1 ) Net income (loss) $ 51 $ 37 $ 25 $ (44 ) $ 69 Net income attributable to noncontrolling interests — — — — — Net income (loss) attributable to partners $ 51 $ 37 $ 25 $ (44 ) $ 69 Non-cash derivative mark-to-market (b) $ (45 ) $ — $ 3 $ (1 ) $ (43 ) Non-cash lower of cost or market adjustments $ 3 $ — $ 1 $ — $ 4 Capital expenditures $ 50 $ 13 $ 2 $ — $ 65 Investments in unconsolidated affiliates, net $ 12 $ 13 $ — $ — $ 25 March 31, December 31, 2016 2015 (Millions) Segment long-term assets: Natural Gas Services $ 4,325 $ 4,362 NGL Logistics 679 679 Wholesale Propane Logistics 119 120 Other (c) 8 10 Total long-term assets 5,131 5,171 Current assets 223 306 Total assets $ 5,354 $ 5,477 (a) Gross margin consists of total operating revenues, including commodity derivative activity, less purchases of natural gas, propane and NGLs. Gross margin is viewed as a non-GAAP measure under the rules of the SEC, but is included as a supplemental disclosure because it is a primary performance measure used by management as it represents the results of product sales versus product purchases. As an indicator of our operating performance, gross margin should not be considered an alternative to, or more meaningful than, net income or cash flow as determined in accordance with GAAP. Our gross margin may not be comparable to a similarly titled measure of another company because other entities may not calculate gross margin in the same manner. (b) Non-cash commodity derivative mark-to-market is included in gross margin, along with cash settlements for our commodity derivative contracts. (c) Other long-term assets not allocable to segments consist of unrealized gains on derivative instruments, corporate leasehold improvements and other long-term assets. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Months Ended March 31, 2016 2015 (Millions) Cash paid for interest: Cash paid for interest, net of amounts capitalized $ 11 $ 8 Non-cash investing and financing activities: Property, plant and equipment acquired with accounts payable $ 2 $ 32 |
Supplementary Information - Con
Supplementary Information - Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Supplementary Information - Condensed Consolidating Financial Information | Supplementary Information — Condensed Consolidating Financial Information The following condensed consolidating financial information presents the results of operations, financial position and cash flows of DCP Midstream Partners, LP, or parent guarantor, DCP Midstream Operating LP, or subsidiary issuer, which is a 100% owned subsidiary, and non-guarantor subsidiaries, as well as the consolidating adjustments necessary to present DCP Midstream Partners, LP’s results on a consolidated basis. The parent guarantor has agreed to fully and unconditionally guarantee debt securities of the subsidiary issuer. For the purpose of the following financial information, investments in subsidiaries are reflected in accordance with the equity method of accounting. The financial information may not necessarily be indicative of results of operations, cash flows, or financial position had the subsidiaries operated as independent entities. Condensed Consolidating Balance Sheet March 31, 2016 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 1 $ — $ 1 Accounts receivable, net — — 136 — 136 Inventories — — 37 — 37 Other — — 49 — 49 Total current assets — — 223 — 223 Property, plant and equipment, net — — 3,446 — 3,446 Goodwill and intangible assets, net — — 182 — 182 Advances receivable — consolidated subsidiaries 2,038 1,963 — (4,001 ) — Investments in consolidated subsidiaries 685 1,129 — (1,814 ) — Investments in unconsolidated affiliates — — 1,486 — 1,486 Other long-term assets — — 17 — 17 Total assets $ 2,723 $ 3,092 $ 5,354 $ (5,815 ) $ 5,354 LIABILITIES AND EQUITY Accounts payable and other current liabilities $ — $ 30 $ 145 $ — $ 175 Advances payable — consolidated subsidiaries — — 4,001 (4,001 ) — Long-term debt — 2,377 — — 2,377 Other long-term liabilities — — 48 — 48 Total liabilities — 2,407 4,194 (4,001 ) 2,600 Commitments and contingent liabilities Equity: Partners’ equity: Net equity 2,723 688 1,134 (1,814 ) 2,731 Accumulated other comprehensive loss — (3 ) (5 ) — (8 ) Total partners’ equity 2,723 685 1,129 (1,814 ) 2,723 Noncontrolling interests — — 31 — 31 Total equity 2,723 685 1,160 (1,814 ) 2,754 Total liabilities and equity $ 2,723 $ 3,092 $ 5,354 $ (5,815 ) $ 5,354 Condensed Consolidating Balance Sheet December 31, 2015 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 2 $ — $ 2 Accounts receivable, net — — 154 — 154 Inventories — — 43 — 43 Other — — 107 — 107 Total current assets — — 306 — 306 Property, plant and equipment, net — — 3,476 — 3,476 Goodwill and intangible assets, net — — 184 — 184 Advances receivable — consolidated subsidiaries 2,159 2,023 — (4,182 ) — Investments in consolidated subsidiaries 613 1,033 — (1,646 ) — Investments in unconsolidated affiliates — — 1,493 — 1,493 Other long-term assets — — 18 — 18 Total assets $ 2,772 $ 3,056 $ 5,477 $ (5,828 ) $ 5,477 LIABILITIES AND EQUITY Accounts payable and other current liabilities $ — $ 19 $ 181 $ — $ 200 Advances payable — consolidated subsidiaries — — 4,182 (4,182 ) — Long-term debt — 2,424 — — 2,424 Other long-term liabilities — — 48 — 48 Total liabilities — 2,443 4,411 (4,182 ) 2,672 Commitments and contingent liabilities Equity: Partners’ equity: Net equity 2,772 616 1,038 (1,646 ) 2,780 Accumulated other comprehensive loss — (3 ) (5 ) — (8 ) Total partners’ equity 2,772 613 1,033 (1,646 ) 2,772 Noncontrolling interests — — 33 — 33 Total equity 2,772 613 1,066 (1,646 ) 2,805 Total liabilities and equity $ 2,772 $ 3,056 $ 5,477 $ (5,828 ) $ 5,477 Condensed Consolidating Statement of Operations Three Months Ended March 31, 2016 Parent Guarantor Subsidiary Issuer Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) Operating revenues: Sales of natural gas, propane, NGLs and condensate $ — $ — $ 267 $ — $ 267 Transportation, processing and other — — 103 — 103 Gains from commodity derivative activity, net — — 9 — 9 Total operating revenues — — 379 — 379 Operating costs and expenses: Purchases of natural gas, propane and NGLs — — 231 — 231 Operating and maintenance expense — — 48 — 48 Depreciation and amortization expense — — 32 — 32 General and administrative expense — — 21 — 21 Total operating costs and expenses — — 332 — 332 Operating income — — 47 — 47 Interest expense — (24 ) — — (24 ) Income from consolidated subsidiaries 72 96 — (168 ) — Earnings from unconsolidated affiliates — — 49 — 49 Income before income taxes 72 72 96 (168 ) 72 Income tax expense — — — — — Net income 72 72 96 (168 ) 72 Net income attributable to noncontrolling interests — — — — — Net income attributable to partners $ 72 $ 72 $ 96 $ (168 ) $ 72 Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2016 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) Net income $ 72 $ 72 $ 96 $ (168 ) $ 72 Other comprehensive income: Reclassification of cash flow hedge losses into earnings — — — — — Other comprehensive income from consolidated subsidiaries — — — — — Total other comprehensive income — — — — — Total comprehensive income 72 72 96 (168 ) 72 Total comprehensive income attributable to noncontrolling interests — — — — — Total comprehensive income attributable to partners $ 72 $ 72 $ 96 $ (168 ) $ 72 Condensed Consolidating Statement of Operations Three Months Ended March 31, 2015 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) Operating revenues: Sales of natural gas, propane, NGLs and condensate $ — $ — $ 470 $ — $ 470 Transportation, processing and other — — 79 — 79 Gains from commodity derivative activity, net — — 19 — 19 Total operating revenues — — 568 — 568 Operating costs and expenses: Purchases of natural gas, propane and NGLs — — 402 — 402 Operating and maintenance expense — — 47 — 47 Depreciation and amortization expense — — 29 — 29 General and administrative expense — — 21 — 21 Total operating costs and expenses — — 499 — 499 Operating income — — 69 — 69 Interest expense, net — (22 ) — — (22 ) Income from consolidated subsidiaries 69 91 — (160 ) — Earnings from unconsolidated affiliates — — 23 — 23 Income before income taxes 69 69 92 (160 ) 70 Income tax expense — — (1 ) — (1 ) Net income 69 69 91 (160 ) 69 Net income attributable to noncontrolling interests — — — — — Net income attributable to partners $ 69 $ 69 $ 91 $ (160 ) $ 69 Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2015 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) Net income $ 69 $ 69 $ 91 $ (160 ) $ 69 Other comprehensive income: Reclassification of cash flow hedge losses into earnings — 1 — — 1 Other comprehensive income from consolidated subsidiaries 1 — — (1 ) — Total other comprehensive income 1 1 — (1 ) 1 Total comprehensive income 70 70 91 (161 ) 70 Total comprehensive income attributable to noncontrolling interests — — — — — Total comprehensive income attributable to partners $ 70 $ 70 $ 91 $ (161 ) $ 70 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2016 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (11 ) $ 199 $ — $ 188 INVESTING ACTIVITIES: Intercompany transfers 121 59 — (180 ) — Capital expenditures — — (10 ) — (10 ) Investments in unconsolidated affiliates — — (8 ) — (8 ) Net cash provided by (used in) investing activities 121 59 (18 ) (180 ) (18 ) FINANCING ACTIVITIES: Intercompany transfers — — (180 ) 180 — Proceeds from long-term debt — 394 — — 394 Payments of long-term debt — (442 ) — — (442 ) Distributions to limited partners and general partner (121 ) — — — (121 ) Distributions to noncontrolling interests — — (2 ) — (2 ) Net cash (used in) provided by financing activities (121 ) (48 ) (182 ) 180 (171 ) Net change in cash and cash equivalents — — (1 ) — (1 ) Cash and cash equivalents, beginning of period — — 2 — 2 Cash and cash equivalents, end of period $ — $ — $ 1 $ — $ 1 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2015 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (8 ) $ 196 $ — $ 188 INVESTING ACTIVITIES: Intercompany transfers 89 16 — (105 ) — Capital expenditures — — (65 ) — (65 ) Investments in unconsolidated affiliates — — (25 ) — (25 ) Net cash used in investing activities 89 16 (90 ) (105 ) (90 ) FINANCING ACTIVITIES: Intercompany transfers — — (105 ) 105 — Proceeds from long-term debt — 162 — — 162 Payments of long-term debt — (162 ) — — (162 ) Proceeds from issuance of common units, net of offering costs 31 — — — 31 Distributions to limited partners and general partner (120 ) — — — (120 ) Distributions to noncontrolling interests — — (1 ) — (1 ) Net cash provided by financing activities (89 ) — (106 ) 105 (90 ) Net change in cash and cash equivalents — 8 — — 8 Cash and cash equivalents, beginning of period — 24 1 — 25 Cash and cash equivalents, end of period $ — $ 32 $ 1 $ — $ 33 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 26, 2016 , we announced that the board of directors of the General Partner declared a quarterly distribution of $0.78 per unit. The distribution will be paid on May 13, 2016 to unitholders of record on May 9, 2016 . |
Description of Business and B25
Description of Business and Basis of Presentation Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | The condensed consolidated financial statements include the accounts of the Partnership and all majority-owned subsidiaries where we have the ability to exercise control. |
Business Combinations and Other Purchase of Business Transactions, Policy [Policy Text Block] | |
Equity Method Investments, Policy [Policy Text Block] | Investments in greater than 20% owned affiliates that are not variable interest entities and where we do not have the ability to exercise control, and investments in less than 20% owned affiliates where we have the ability to exercise significant influence, are accounted for using the equity method. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Derivatives, Policy [Policy Text Block] | Cash Flow Protection Activities — We are exposed to the impact of market fluctuations in the prices of natural gas, NGLs and condensate as a result of our gathering, processing, sales and storage activities. For gathering, processing and storage services, we may receive cash or commodities as payment for these services, depending on the contract type. We enter into derivative financial instruments to mitigate a portion of the risk of weakening natural gas, NGL and condensate prices associated with our gathering, processing and sales activities, thereby stabilizing our cash flows. We have mitigated a portion of our expected commodity price risk associated with our gathering, processing and sales activities through 2017 with commodity derivative instruments. Our commodity derivative instruments used for our hedging program are a combination of direct NGL product, crude oil, and natural gas hedges. Due to the limited liquidity and tenor of the NGL derivative market, we have used crude oil swaps to mitigate a portion of our commodity price exposure to NGLs. Historically, prices of NGLs have generally been related to crude oil prices; however, there are periods of time when NGL pricing may be at a greater discount to crude oil, resulting in additional exposure to NGL commodity prices. The relationship of NGLs to crude oil continues to be lower than historical relationships. When our crude oil swaps become short-term in nature, we have periodically converted certain crude oil derivatives to NGL derivatives by entering into offsetting crude oil swaps while adding NGL swaps. Our crude oil and NGL transactions are primarily accomplished through the use of forward contracts that effectively exchange our floating price risk for a fixed price. The type of instrument that we use to mitigate a portion of our risk may vary depending upon our risk management objective. These transactions are not designated as hedging instruments for accounting purposes and the change in fair value is reflected within our condensed consolidated statements of operations as a gain or a loss on commodity derivative activity. Our Wholesale Propane Logistics segment is generally designed with the intent to establish stable margins by entering into supply arrangements that specify prices based on established floating price indices and by entering into sales agreements that provide for floating prices that are tied to our variable supply costs plus a margin. To the extent possible, we match the pricing of our supply portfolio to our sales portfolio in order to lock in value and reduce our overall commodity price risk. However, to the extent that we carry propane inventories or our sales and supply arrangements are not aligned, we are exposed to market variables and commodity price risk. We manage the commodity price risk of our supply portfolio and sales portfolio with both physical and financial transactions, including fixed price sales. While the majority of our sales and purchases in this segment are index-based, occasionally, we may enter into fixed price sales agreements in the event that a propane distributor desires to purchase propane from us on a fixed price basis. In such cases, we may manage this risk with derivatives that allow us to swap our fixed price risk to market index prices that are matched to our market index supply costs. In addition, we may use financial derivatives to manage the value of our propane inventories. These transactions are not designated as hedging instruments for accounting purposes and any change in fair value is reflected in the current period within our condensed consolidated statements of operations as a gain or loss on commodity derivative activity. Our portfolio of commodity derivative activity is primarily accounted for using the mark-to-market method of accounting, whereby changes in fair value are recorded directly to the condensed consolidated statements of operations; however, depending upon our risk profile and objectives, in certain limited cases, we may execute transactions that qualify for the hedge method of accounting. Natural Gas Storage and Pipeline Asset Based Commodity Derivative Program — Our natural gas storage and pipeline assets are exposed to certain risks including changes in commodity prices. We manage commodity price risk related to our natural gas storage and pipeline assets through our commodity derivative program. The commercial activities related to our natural gas storage and pipeline assets primarily consist of the purchase and sale of gas and associated time spreads and basis spreads. A time spread transaction is executed by establishing a long gas position at one point in time and establishing an equal short gas position at a different point in time. Time spread transactions allow us to lock in a margin supported by the injection, withdrawal, and storage capacity of our natural gas storage assets. We may execute basis spread transactions to mitigate the risk of sale and purchase price differentials across our system. A basis spread transaction allows us to lock in a margin on our physical purchases and sales of gas, including injections and withdrawals from storage. We typically use swaps to execute these transactions, which are not designated as hedging instruments and are recorded at fair value with changes in fair value recorded in the current period condensed consolidated statements of operations. While gas held in our storage locations is recorded at the lower of average cost or market, the derivative instruments that are used to manage our storage facilities are recorded at fair value and any changes in fair value are currently recorded in our condensed consolidated statements of operations. Even though we may have economically hedged our exposure and locked in a future margin, the use of lower-of-cost-or-market accounting for our physical inventory and the use of mark-to-market accounting for our derivative instruments may subject our earnings to market volatility. Commodity Cash Flow Hedges — In order for storage facilities to remain operational, a minimum level of base gas must be maintained in each storage cavern, which is capitalized on our condensed consolidated balance sheets as a component of property, plant and equipment, net. During construction or expansion of our storage caverns, we may execute a series of derivative financial instruments to mitigate a portion of the risk associated with the forecasted purchase of natural gas when we bring the storage caverns to operation. These derivative financial instruments may be designated as cash flow hedges. While the cash paid upon settlement of these hedges economically fixes the cash required to purchase the base gas, the deferred losses or gains would remain in accumulated other comprehensive income, or AOCI, until the cavern is emptied and the base gas is sold. The balance in AOCI of our previously settled base gas cash flow hedges was in a loss position of $6 million as of March 31, 2016 . Interest Rate Risk We enter into debt arrangements that have either fixed or floating rates, therefore we are exposed to market risks related to changes in interest rates. We periodically use interest rate swaps to convert our floating rate debt to fixed-rate debt or to convert our fixed-rate debt to floating rate debt. Our primary goals include: (1) maintaining an appropriate ratio of fixed-rate debt to floating-rate debt; (2) reducing volatility of earnings resulting from interest rate fluctuations; and (3) locking in attractive interest rates. |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | The condensed consolidated financial statements include the accounts of the Partnership and all majority-owned subsidiaries where we have the ability to exercise control. |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value Measurement (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Fair Value Measurement, Policy [Policy Text Block] | Determination of Fair Value Below is a general description of our valuation methodologies for derivative financial assets and liabilities which are measured at fair value. Fair values are generally based upon quoted market prices or prices obtained through external sources, where available. If listed market prices or quotes are not available, we determine fair value based upon a market quote, adjusted by other market-based or independently sourced market data such as historical commodity volatilities, crude oil future yield curves, and/or counterparty specific considerations. These adjustments result in a fair value for each asset or liability under an “exit price” methodology, in line with how we believe a marketplace participant would value that asset or liability. Fair values are adjusted to reflect the credit risk inherent in the transaction as well as the potential impact of liquidating open positions in an orderly manner over a reasonable time period under current conditions. These adjustments may include amounts to reflect counterparty credit quality, the effect of our own creditworthiness, the time value of money and/or the liquidity of the market. • Counterparty credit valuation adjustments are necessary when the market price of an instrument is not indicative of the fair value as a result of the credit quality of the counterparty. Generally, market quotes assume that all counterparties have near zero, or low, default rates and have equal credit quality. Therefore, an adjustment may be necessary to reflect the credit quality of a specific counterparty to determine the fair value of the instrument. We record counterparty credit valuation adjustments on all derivatives that are in a net asset position as of the measurement date in accordance with our established counterparty credit policy, which takes into account any collateral margin that a counterparty may have posted with us as well as any letters of credit that they have provided. • Entity valuation adjustments are necessary to reflect the effect of our own credit quality on the fair value of our net liability positions with each counterparty. This adjustment takes into account any credit enhancements, such as collateral margin we may have posted with a counterparty, as well as any letters of credit that we have provided. The methodology to determine this adjustment is consistent with how we evaluate counterparty credit risk, taking into account our own credit rating, current credit spreads, as well as any change in such spreads since the last measurement date. • Liquidity valuation adjustments are necessary when we are not able to observe a recent market price for financial instruments that trade in less active markets for the fair value to reflect the cost of exiting the position. Exchange traded contracts are valued at market value without making any additional valuation adjustments and, therefore, no liquidity reserve is applied. For contracts other than exchange traded instruments, we mark our positions to the midpoint of the bid/ask spread, and record a liquidity reserve based upon our total net position. We believe that such practice results in the most reliable fair value measurement as viewed by a market participant. We manage our derivative instruments on a portfolio basis and the valuation adjustments described above are calculated on this basis. We believe that the portfolio level approach represents the highest and best use for these assets as there are benefits inherent in naturally offsetting positions within the portfolio at any given time, and this approach is consistent with how a market participant would view and value the assets and liabilities. Although we take a portfolio approach to managing these assets/liabilities, in order to reflect the fair value of any one individual contract within the portfolio, we allocate all valuation adjustments down to the contract level, to the extent deemed necessary, based upon either the notional contract volume, or the contract value, whichever is more applicable. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While we believe that our valuation methods are appropriate and consistent with other market participants, we recognize that the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. We review our fair value policies on a regular basis taking into consideration changes in the marketplace and, if necessary, will adjust our policies accordingly. See Note 9 - Risk Management and Hedging Activities. Valuation Hierarchy Our fair value measurements are grouped into a three-level valuation hierarchy. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows. • Level 1 — inputs are unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2 — inputs include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 — inputs are unobservable and considered significant to the fair value measurement. A financial instrument’s categorization within the hierarchy is based upon the level of judgment involved in the most significant input in the determination of the instrument’s fair value. Following is a description of the valuation methodologies used as well as the general classification of such instruments pursuant to the hierarchy. Commodity Derivative Assets and Liabilities We enter into a variety of derivative financial instruments, which may include over-the-counter, or OTC, instruments, such as natural gas, crude oil or NGL contracts. Within our Natural Gas Services segment, we typically use OTC derivative contracts in order to mitigate a portion of our exposure to natural gas, NGL and condensate price changes. We also may enter into natural gas derivatives to lock in margin around our storage and transportation assets. These instruments are generally classified within Level 2. Depending upon market conditions and our strategy, we may enter into OTC derivative positions with a significant time horizon to maturity, and market prices for these OTC derivatives may only be readily observable for a portion of the duration of the instrument. In order to calculate the fair value of these instruments, readily observable market information is utilized to the extent that it is available; however, in the event that readily observable market data is not available, we may interpolate or extrapolate based upon observable data. In instances where we utilize an interpolated or extrapolated value, and it is considered significant to the valuation of the contract as a whole, we would classify the instrument within Level 3. Within our Wholesale Propane Logistics segment, we may enter into a variety of financial instruments to either secure sales or purchase prices, or capture a variety of market opportunities. Since financial instruments for NGLs tend to be counterparty and location specific, we primarily use the OTC derivative instrument markets, which are not as active and liquid as exchange traded instruments. Market quotes for such contracts may only be available for short dated positions (up to six months), and an active market itself may not exist beyond such time horizon. Contracts entered into with a relatively short time horizon for which prices are readily observable in the OTC market are generally classified within Level 2. Contracts with a longer time horizon, for which we internally generate a forward curve to value such instruments, are generally classified within Level 3. The internally generated curve may utilize a variety of assumptions including, but not limited to, data obtained from third party pricing services, historical and future expected relationship of NGL prices to crude oil prices, the knowledge of expected supply sources coming on line, expected weather trends within certain regions of the United States, and the future expected demand for NGLs. Each instrument is assigned to a level within the hierarchy at the end of each financial quarter depending upon the extent to which the valuation inputs are observable. Generally, an instrument will move toward a level within the hierarchy that requires a lower degree of judgment as the time to maturity approaches, and as the markets in which the asset trades will likely become more liquid and prices more readily available in the market, thus reducing the need to rely upon our internally developed assumptions. However, the level of a given instrument may change, in either direction, depending upon market conditions and the availability of market observable data. Interest Rate Derivative Assets and Liabilities We may use interest rate swap agreements as part of our overall capital strategy. These instruments would effectively exchange a portion of our existing floating rate debt for fixed-rate debt. Historically, our swaps have been generally priced based upon a London Interbank Offered Rate, or LIBOR, instrument with similar duration, adjusted by the credit spread between our company and the LIBOR instrument. Given that a portion of the swap value is derived from the credit spread, which may be observed by comparing similar assets in the market, these instruments are classified within Level 2. Default risk on either side of the swap transaction is also considered in the valuation. We record counterparty credit and entity valuation adjustments in the valuation of our interest rate swaps; however, these reserves are not considered to be a significant input to the overall valuation. Nonfinancial Assets and Liabilities We utilize fair value to perform impairment tests as required on our property, plant and equipment; goodwill; and long-lived intangible assets. Assets and liabilities acquired in third party business combinations are recorded at their fair value as of the date of acquisition. The inputs used to determine such fair value are primarily based upon internally developed cash flow models and would generally be classified within Level 3 in the event that we were required to measure and record such assets at fair value within our condensed consolidated financial statements. Additionally, we use fair value to determine the inception value of our asset retirement obligations. The inputs used to determine such fair value are primarily based upon costs incurred historically for similar work, as well as estimates from independent third parties for costs that would be incurred to restore leased property to the contractually stipulated condition, and would generally be classified within Level 3. |
Risk Management and Hedging A28
Risk Management and Hedging Activities Derivatives, Methods of Accounting (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Derivatives, Policy [Policy Text Block] | Cash Flow Protection Activities — We are exposed to the impact of market fluctuations in the prices of natural gas, NGLs and condensate as a result of our gathering, processing, sales and storage activities. For gathering, processing and storage services, we may receive cash or commodities as payment for these services, depending on the contract type. We enter into derivative financial instruments to mitigate a portion of the risk of weakening natural gas, NGL and condensate prices associated with our gathering, processing and sales activities, thereby stabilizing our cash flows. We have mitigated a portion of our expected commodity price risk associated with our gathering, processing and sales activities through 2017 with commodity derivative instruments. Our commodity derivative instruments used for our hedging program are a combination of direct NGL product, crude oil, and natural gas hedges. Due to the limited liquidity and tenor of the NGL derivative market, we have used crude oil swaps to mitigate a portion of our commodity price exposure to NGLs. Historically, prices of NGLs have generally been related to crude oil prices; however, there are periods of time when NGL pricing may be at a greater discount to crude oil, resulting in additional exposure to NGL commodity prices. The relationship of NGLs to crude oil continues to be lower than historical relationships. When our crude oil swaps become short-term in nature, we have periodically converted certain crude oil derivatives to NGL derivatives by entering into offsetting crude oil swaps while adding NGL swaps. Our crude oil and NGL transactions are primarily accomplished through the use of forward contracts that effectively exchange our floating price risk for a fixed price. The type of instrument that we use to mitigate a portion of our risk may vary depending upon our risk management objective. These transactions are not designated as hedging instruments for accounting purposes and the change in fair value is reflected within our condensed consolidated statements of operations as a gain or a loss on commodity derivative activity. Our Wholesale Propane Logistics segment is generally designed with the intent to establish stable margins by entering into supply arrangements that specify prices based on established floating price indices and by entering into sales agreements that provide for floating prices that are tied to our variable supply costs plus a margin. To the extent possible, we match the pricing of our supply portfolio to our sales portfolio in order to lock in value and reduce our overall commodity price risk. However, to the extent that we carry propane inventories or our sales and supply arrangements are not aligned, we are exposed to market variables and commodity price risk. We manage the commodity price risk of our supply portfolio and sales portfolio with both physical and financial transactions, including fixed price sales. While the majority of our sales and purchases in this segment are index-based, occasionally, we may enter into fixed price sales agreements in the event that a propane distributor desires to purchase propane from us on a fixed price basis. In such cases, we may manage this risk with derivatives that allow us to swap our fixed price risk to market index prices that are matched to our market index supply costs. In addition, we may use financial derivatives to manage the value of our propane inventories. These transactions are not designated as hedging instruments for accounting purposes and any change in fair value is reflected in the current period within our condensed consolidated statements of operations as a gain or loss on commodity derivative activity. Our portfolio of commodity derivative activity is primarily accounted for using the mark-to-market method of accounting, whereby changes in fair value are recorded directly to the condensed consolidated statements of operations; however, depending upon our risk profile and objectives, in certain limited cases, we may execute transactions that qualify for the hedge method of accounting. Natural Gas Storage and Pipeline Asset Based Commodity Derivative Program — Our natural gas storage and pipeline assets are exposed to certain risks including changes in commodity prices. We manage commodity price risk related to our natural gas storage and pipeline assets through our commodity derivative program. The commercial activities related to our natural gas storage and pipeline assets primarily consist of the purchase and sale of gas and associated time spreads and basis spreads. A time spread transaction is executed by establishing a long gas position at one point in time and establishing an equal short gas position at a different point in time. Time spread transactions allow us to lock in a margin supported by the injection, withdrawal, and storage capacity of our natural gas storage assets. We may execute basis spread transactions to mitigate the risk of sale and purchase price differentials across our system. A basis spread transaction allows us to lock in a margin on our physical purchases and sales of gas, including injections and withdrawals from storage. We typically use swaps to execute these transactions, which are not designated as hedging instruments and are recorded at fair value with changes in fair value recorded in the current period condensed consolidated statements of operations. While gas held in our storage locations is recorded at the lower of average cost or market, the derivative instruments that are used to manage our storage facilities are recorded at fair value and any changes in fair value are currently recorded in our condensed consolidated statements of operations. Even though we may have economically hedged our exposure and locked in a future margin, the use of lower-of-cost-or-market accounting for our physical inventory and the use of mark-to-market accounting for our derivative instruments may subject our earnings to market volatility. Commodity Cash Flow Hedges — In order for storage facilities to remain operational, a minimum level of base gas must be maintained in each storage cavern, which is capitalized on our condensed consolidated balance sheets as a component of property, plant and equipment, net. During construction or expansion of our storage caverns, we may execute a series of derivative financial instruments to mitigate a portion of the risk associated with the forecasted purchase of natural gas when we bring the storage caverns to operation. These derivative financial instruments may be designated as cash flow hedges. While the cash paid upon settlement of these hedges economically fixes the cash required to purchase the base gas, the deferred losses or gains would remain in accumulated other comprehensive income, or AOCI, until the cavern is emptied and the base gas is sold. The balance in AOCI of our previously settled base gas cash flow hedges was in a loss position of $6 million as of March 31, 2016 . Interest Rate Risk We enter into debt arrangements that have either fixed or floating rates, therefore we are exposed to market risks related to changes in interest rates. We periodically use interest rate swaps to convert our floating rate debt to fixed-rate debt or to convert our fixed-rate debt to floating rate debt. Our primary goals include: (1) maintaining an appropriate ratio of fixed-rate debt to floating-rate debt; (2) reducing volatility of earnings resulting from interest rate fluctuations; and (3) locking in attractive interest rates. |
Agreements and Transactions w29
Agreements and Transactions with Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Fees Incurred and Other Fees Paid | The following is a summary of the fees we incurred under the Services Agreement, as well as other fees paid to DCP Midstream, LLC: Three Months Ended March 31, 2016 2015 (Millions) Services Agreement $ 18 $ 18 Other fees — DCP Midstream, LLC 1 — Total — DCP Midstream, LLC $ 19 $ 18 |
Summary of Transactions with Affiliates | The following table summarizes our transactions with affiliates: Three Months Ended March 31, 2016 2015 (Millions) DCP Midstream, LLC: Sales of natural gas, propane, NGLs and condensate $ 162 $ 281 Transportation, processing and other $ 42 $ 23 Purchases of natural gas, propane and NGLs $ 14 $ 25 Gains from commodity derivative activity, net $ 5 $ 14 General and administrative expense $ 19 $ 18 Spectra Energy: Purchases of natural gas, propane and NGLs $ 9 $ 10 We had balances with affiliates as follows: March 31, December 31, (Millions) DCP Midstream, LLC: Accounts receivable $ 72 $ 81 Accounts payable $ 16 $ 15 Unrealized gains on derivative instruments — current $ 12 $ 32 Unrealized gains on derivative instruments — long-term $ 7 $ 9 Unrealized losses on derivative instruments — current $ 5 $ 18 Unrealized losses on derivative instruments — long-term $ — $ 1 Spectra Energy: Accounts payable $ 4 $ 4 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories were as follows: March 31, December 31, (Millions) Natural gas $ 23 $ 29 NGLs 14 14 Total inventories $ 37 $ 43 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Classification of Property, Plant and Equipment | A summary of property, plant and equipment by classification is as follows: Depreciable Life March 31, December 31, (Millions) Gathering and transmission systems 20 — 50 Years $ 2,340 $ 2,337 Processing, storage, and terminal facilities 35 — 60 Years 2,362 2,327 Other 3 — 30 Years 66 64 Construction work in progress 82 122 Property, plant and equipment 4,850 4,850 Accumulated depreciation (1,404 ) (1,374 ) Property, plant and equipment, net $ 3,446 $ 3,476 |
Investments in Unconsolidated32
Investments in Unconsolidated Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | The following table summarizes our investments in unconsolidated affiliates: Carrying Value as of Percentage Ownership March 31, December 31, (Millions) DCP Sand Hills Pipeline, LLC 33.33% $ 442 $ 441 Discovery Producer Services LLC 40% 397 406 DCP Southern Hills Pipeline, LLC 33.33% 317 318 Front Range Pipeline LLC 33.33% 170 170 Texas Express Pipeline LLC 10% 95 96 Mont Belvieu Enterprise Fractionator 12.5% 23 25 Panola Pipeline Company, LLC 15% 24 19 Mont Belvieu 1 Fractionator 20% 11 11 Other Various 7 7 Total investments in unconsolidated affiliates $ 1,486 $ 1,493 |
Earnings from Investments in Unconsolidated Affiliates | Earnings (losses) from investments in unconsolidated affiliates were as follows: Three Months Ended March 31, 2016 2015 (Millions) Discovery Producer Services LLC 15 (2 ) DCP Sand Hills Pipeline, LLC 14 11 DCP Southern Hills Pipeline, LLC 7 3 Front Range Pipeline LLC 5 4 Mont Belvieu Enterprise Fractionator 4 4 Mont Belvieu 1 Fractionator 2 1 Texas Express Pipeline LLC 2 2 Total earnings from unconsolidated affiliates $ 49 $ 23 |
Equity Method Investment Summarized Financial Information, Statement of Operations | The following tables summarize the combined financial information of our investments in unconsolidated affiliates: Three Months Ended March 31, 2016 2015 (Millions) Statements of operations (a): Operating revenue $ 308 $ 233 Operating expenses $ 128 $ 129 Net income $ 178 $ 103 |
Equity Method Investment Summarized Financial Information, Balance Sheet | March 31, December 31, (Millions) Balance sheets (a): Current assets $ 176 $ 182 Long-term assets 5,183 5,200 Current liabilities (140 ) (170 ) Long-term liabilities (231 ) (216 ) Net assets $ 4,988 $ 4,996 (a) In accordance with the Panola joint venture agreement, earnings began to accrue on February 1, 2016. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Carried at Fair Value | The following table presents the financial instruments carried at fair value as of March 31, 2016 and December 31, 2015 , by condensed consolidated balance sheet caption and by valuation hierarchy, as described above: March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Carrying Value Level 1 Level 2 Level 3 Total Carrying Value (Millions) Current assets: Commodity derivatives (a) $ — $ 48 $ — $ 48 $ — $ 83 $ 22 $ 105 Short-term investments (b) $ 1 $ — $ — $ 1 $ 2 $ — $ — $ 2 Long-term assets: Commodity derivatives (c) $ — $ 7 $ — $ 7 $ — $ 9 $ — $ 9 Current liabilities: Commodity derivatives (d) $ — $ (5 ) $ — $ (5 ) $ — $ (18 ) $ — $ (18 ) Long-term liabilities: Commodity derivatives (e) $ — $ — $ — $ — $ — $ (1 ) $ — $ (1 ) (a) Included in current unrealized gains on derivative instruments in our condensed consolidated balance sheets. (b) Includes short-term money market securities included in cash and cash equivalents in our condensed consolidated balance sheets. (c) Included in long-term unrealized gains on derivative instruments in our condensed consolidated balance sheets. (d) Included in current unrealized losses on derivative instruments in our condensed consolidated balance sheets. |
Fair Value Assets and Liabilities Measured On Recurring Basis Unobservable Input Reconciliation | Commodity Derivative Instruments Current Assets Long- Term Assets Current Liabilities Long- Term Liabilities (Millions) Three months ended March 31, 2016 (a): Beginning balance $ 22 $ — $ — $ — Settlements (22 ) — — — Ending balance $ — $ — $ — $ — Three months ended March 31, 2015 (a): Beginning balance $ 138 $ 18 $ — $ — Net unrealized gains (losses) included in earnings (b) 20 (18 ) — — Settlements (40 ) — — — Ending balance $ 118 $ — $ — $ — Net unrealized gains (losses) on derivatives still held included in earnings (b) $ 20 $ (18 ) $ — $ — (a) There were no purchases, issuances or sales of derivatives or transfers into/out of Level 3 for the three months ended March 31, 2016 and 2015 . (b) Represents the amount of total gains or losses for the period, included in gains or losses from commodity derivative activity, net. |
Schedule of Valuation Processes | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | As of March 31, 2016 and December 31, 2015 , the carrying value and fair value of our long-term fixed-rate Senior Notes, including current maturities, and our Amended and Restated Credit Agreement were as follows: March 31, 2016 December 31, 2015 Carrying Value (a) Fair Value Carrying Value (a) Fair Value (Millions) Senior Notes $ 2,064 $ 1,770 $ 2,063 $ 1,650 Amended and Restated Credit Agreement $ 327 $ 327 $ 375 $ 375 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | March 31, December 31, (Millions) Amended and Restated Credit Agreement Revolving credit facility, weighted-average variable interest rate of 1.72% and 1.57%, as of March 31, 2016 and December 31, 2015, respectively, due May 1, 2019 $ 327 $ 375 Debt Securities Issued November 27, 2012, interest at 2.50% payable semi-annually, due December 1, 2017 500 500 Issued March 13, 2014, interest at 2.70% payable semi-annually, due April 1, 2019 325 325 Issued March 13, 2012, interest at 4.95% payable semi-annually, due April 1, 2022 350 350 Issued March 14, 2013, interest at 3.875% payable semi-annually, due March 15, 2023 500 500 Issued March 13, 2014, interest at 5.60% payable semi-annually, due April 1, 2044 400 400 Unamortized issuance costs (14 ) (14 ) Unamortized discount (11 ) (12 ) Total long-term debt $ 2,377 $ 2,424 |
Future Maturities of Long-Term Debt | The future maturities of long-term debt in the year indicated are as follows: Debt Maturities (Millions) 2017 $ 500 2018 — 2019 652 2020 — 2021 — Thereafter 1,250 2,402 Unamortized issuance costs (14 ) Unamortized discount (11 ) Total $ 2,377 |
Risk Management and Hedging A35
Risk Management and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Gross and Net Amounts of Derivative Instruments | The following summarizes the gross and net amounts of our derivative instruments: March 31, 2016 December 31, 2015 Gross Amounts of Assets and (Liabilities) Presented in the Balance Sheet Amounts Not Offset in the Balance Sheet - Financial Instruments (a) Net Amount Gross Amounts of Assets and (Liabilities) Presented in the Balance Sheet Amounts Not Offset in the Balance Sheet - Financial Instruments (a) Net Amount (Millions) Assets: Commodity derivatives $ 55 $ (5 ) $ 50 $ 114 $ (19 ) $ 95 Liabilities: Commodity derivatives $ (5 ) $ 5 $ — $ (19 ) $ 19 $ — (a) There is no cash collateral pledged or received against these positions. |
Schedule of Designated and Non-Designated Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of our derivative instruments that are marked-to-market each period, as well as the location of each within our condensed consolidated balance sheets, by major category, is summarized below. We have no derivative instruments that are designated as hedging instruments for accounting purposes as of March 31, 2016 and December 31, 2015 . Balance Sheet Line Item March 31, December 31, Balance Sheet Line Item March 31, December 31, (Millions) (Millions) Derivative Assets Not Designated as Hedging Instruments: Derivative Liabilities Not Designated as Hedging Instruments: Commodity derivatives: Commodity derivatives: Unrealized gains on derivative instruments — current $ 48 $ 105 Unrealized losses on derivative instruments — current $ (5 ) $ (18 ) Unrealized gains on derivative instruments — long-term 7 9 Unrealized losses on derivative instruments — long-term — (1 ) Total $ 55 $ 114 Total $ (5 ) $ (19 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following summarizes the balance and activity within AOCI relative to our interest rate, commodity and foreign currency cash flow hedges as of and for the three months ended March 31, 2016 : Interest Commodity Foreign Total (Millions) Net deferred (losses) gains in AOCI (beginning balance) $ (3 ) $ (6 ) $ 1 $ (8 ) Net deferred (losses) gains in AOCI (ending balance) $ (3 ) $ (6 ) $ 1 $ (8 ) (a) Relates to Discovery, an unconsolidated affiliate. The following summarizes the balance and activity within AOCI relative to our interest rate, commodity and foreign currency cash flow hedges as of and for the three months ended March 31, 2016 : Interest Commodity Foreign Total (Millions) Net deferred (losses) gains in AOCI (beginning balance) $ (3 ) $ (6 ) $ 1 $ (8 ) Net deferred (losses) gains in AOCI (ending balance) $ (3 ) $ (6 ) $ 1 $ (8 ) (a) Relates to Discovery, an unconsolidated affiliate. For the three months ended March 31, 2016 , no derivative losses attributable to the ineffective portion or to amounts excluded from effectiveness testing were recognized in gains or losses from commodity derivative activity, net or interest expense in our condensed consolidated statements of operations. For the three months ended March 31, 2016 , no derivative losses were reclassified from AOCI to gains or losses from commodity derivative activity, net or interest expense as a result of the discontinuance of cash flow hedges related to certain forecasted transactions that are not probable of occurring. The following summarizes the balance and activity within AOCI relative to our interest rate, commodity and foreign currency cash flow hedges as of and for the three months ended March 31, 2015 : Interest Commodity Foreign Total (Millions) Net deferred (losses) gains in AOCI (beginning balance) $ (4 ) $ (6 ) $ 1 $ (9 ) Losses reclassified from AOCI to earnings — effective portion 1 (b) — — 1 Net deferred (losses) gains in AOCI (ending balance) $ (3 ) $ (6 ) $ 1 $ (8 ) (a) Relates to Discovery, an unconsolidated affiliate. (b) Included in interest expense in our condensed consolidated statements of operations. |
Schedule of Changes in Derivative Instruments Not Designated as Hedging Instruments | The following summarizes these amounts and the location within the condensed consolidated statements of operations that such amounts are reflected: Commodity Derivatives: Statements of Operations Line Item Three Months Ended March 31, 2016 2015 (Millions) Third party: Realized gains $ 40 $ 7 Unrealized losses (36 ) (2 ) Gains from commodity derivative activity, net $ 4 $ 5 Affiliates: Realized gains $ 14 $ 54 Unrealized losses (9 ) (40 ) Gains from commodity derivative activity, net —affiliates $ 5 $ 14 |
Schedule of Net Long or Short Positions Expected to be Realized | The following tables represent, by commodity type, our net long or short positions that are expected to partially or entirely settle in each respective year. To the extent that we have long dated derivative positions that span multiple calendar years, the contract will appear in more than one line item in the tables below. March 31, 2016 Crude Oil Natural Gas Natural Gas Liquids Natural Gas Basis Swaps Year of Expiration Net Short Position (Bbls) Net Short Position (MMBtu) Net Short Position (Bbls) Net Long Position (MMBtu) 2016 (1,100,000 ) (9,282,500 ) (180,000 ) 2,060,000 2017 — (12,817,500 ) — 1,800,000 March 31, 2015 Crude Oil Natural Gas Natural Gas Liquids Natural Gas Basis Swaps Year of Expiration Net Short Position (Bbls) Net Short Position (MMBtu) Net Short Position (Bbls) Net Long Position (MMBtu) 2015 (561,825 ) (12,429,125 ) (4,231,200 ) 2,675,000 2016 (561,922 ) (5,668,564 ) (813,267 ) 1,690,000 2017 — (6,387,500 ) — — |
Partnership Equity and Distri36
Partnership Equity and Distributions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Cash Distribution | The following table presents our cash distributions paid in 2016 and 2015 : Payment Date Per Unit Distribution Total Cash Distribution (Millions) February 12, 2016 $ 0.7800 $ 121 November 13, 2015 $ 0.7800 $ 120 August 14, 2015 $ 0.7800 $ 121 May 15, 2015 $ 0.7800 $ 121 February 13, 2015 $ 0.7800 $ 120 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | The following tables set forth our segment information: Three Months Ended March 31, 2016 : Natural Gas Services NGL Logistics Wholesale Propane Logistics Other Total (Millions) Total operating revenue $ 305 $ 21 $ 53 $ — $ 379 Gross margin (a) $ 111 $ 21 $ 16 $ — $ 148 Operating and maintenance expense (40 ) (5 ) (3 ) — (48 ) Depreciation and amortization expense (29 ) (2 ) (1 ) — (32 ) General and administrative expense — — — (21 ) (21 ) Earnings from unconsolidated affiliates 15 34 — — 49 Interest expense — — — (24 ) (24 ) Net income (loss) $ 57 $ 48 $ 12 $ (45 ) $ 72 Net income attributable to noncontrolling interests — — — — — Net income (loss) attributable to partners $ 57 $ 48 $ 12 $ (45 ) $ 72 Non-cash derivative mark-to-market (b) $ (45 ) $ — $ — $ — $ (45 ) Non-cash lower of cost or market adjustments $ 3 $ — $ — $ — $ 3 Capital expenditures $ 9 $ — $ 1 $ — $ 10 Investments in unconsolidated affiliates, net $ — $ 8 $ — $ — $ 8 Three Months Ended March 31, 2015 : Natural Gas NGL Logistics Wholesale Propane Logistics Other Total (Millions) Total operating revenue $ 440 $ 18 $ 110 $ — $ 568 Gross margin (a) $ 119 $ 18 $ 29 $ — $ 166 Operating and maintenance expense (40 ) (4 ) (3 ) — (47 ) Depreciation and amortization expense (26 ) (2 ) (1 ) — (29 ) General and administrative expense — — — (21 ) (21 ) Earnings from unconsolidated affiliates (2 ) 25 — — 23 Interest expense — — — (22 ) (22 ) Income tax expense — — — (1 ) (1 ) Net income (loss) $ 51 $ 37 $ 25 $ (44 ) $ 69 Net income attributable to noncontrolling interests — — — — — Net income (loss) attributable to partners $ 51 $ 37 $ 25 $ (44 ) $ 69 Non-cash derivative mark-to-market (b) $ (45 ) $ — $ 3 $ (1 ) $ (43 ) Non-cash lower of cost or market adjustments $ 3 $ — $ 1 $ — $ 4 Capital expenditures $ 50 $ 13 $ 2 $ — $ 65 Investments in unconsolidated affiliates, net $ 12 $ 13 $ — $ — $ 25 March 31, December 31, 2016 2015 (Millions) Segment long-term assets: Natural Gas Services $ 4,325 $ 4,362 NGL Logistics 679 679 Wholesale Propane Logistics 119 120 Other (c) 8 10 Total long-term assets 5,131 5,171 Current assets 223 306 Total assets $ 5,354 $ 5,477 (a) Gross margin consists of total operating revenues, including commodity derivative activity, less purchases of natural gas, propane and NGLs. Gross margin is viewed as a non-GAAP measure under the rules of the SEC, but is included as a supplemental disclosure because it is a primary performance measure used by management as it represents the results of product sales versus product purchases. As an indicator of our operating performance, gross margin should not be considered an alternative to, or more meaningful than, net income or cash flow as determined in accordance with GAAP. Our gross margin may not be comparable to a similarly titled measure of another company because other entities may not calculate gross margin in the same manner. (b) Non-cash commodity derivative mark-to-market is included in gross margin, along with cash settlements for our commodity derivative contracts. (c) Other long-term assets not allocable to segments consist of unrealized gains on derivative instruments, corporate leasehold improvements and other long-term assets. |
Supplemental Cash Flow Inform38
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Cash Flow Information | Three Months Ended March 31, 2016 2015 (Millions) Cash paid for interest: Cash paid for interest, net of amounts capitalized $ 11 $ 8 Non-cash investing and financing activities: Property, plant and equipment acquired with accounts payable $ 2 $ 32 |
Supplementary Information - C39
Supplementary Information - Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheet March 31, 2016 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 1 $ — $ 1 Accounts receivable, net — — 136 — 136 Inventories — — 37 — 37 Other — — 49 — 49 Total current assets — — 223 — 223 Property, plant and equipment, net — — 3,446 — 3,446 Goodwill and intangible assets, net — — 182 — 182 Advances receivable — consolidated subsidiaries 2,038 1,963 — (4,001 ) — Investments in consolidated subsidiaries 685 1,129 — (1,814 ) — Investments in unconsolidated affiliates — — 1,486 — 1,486 Other long-term assets — — 17 — 17 Total assets $ 2,723 $ 3,092 $ 5,354 $ (5,815 ) $ 5,354 LIABILITIES AND EQUITY Accounts payable and other current liabilities $ — $ 30 $ 145 $ — $ 175 Advances payable — consolidated subsidiaries — — 4,001 (4,001 ) — Long-term debt — 2,377 — — 2,377 Other long-term liabilities — — 48 — 48 Total liabilities — 2,407 4,194 (4,001 ) 2,600 Commitments and contingent liabilities Equity: Partners’ equity: Net equity 2,723 688 1,134 (1,814 ) 2,731 Accumulated other comprehensive loss — (3 ) (5 ) — (8 ) Total partners’ equity 2,723 685 1,129 (1,814 ) 2,723 Noncontrolling interests — — 31 — 31 Total equity 2,723 685 1,160 (1,814 ) 2,754 Total liabilities and equity $ 2,723 $ 3,092 $ 5,354 $ (5,815 ) $ 5,354 Condensed Consolidating Balance Sheet December 31, 2015 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 2 $ — $ 2 Accounts receivable, net — — 154 — 154 Inventories — — 43 — 43 Other — — 107 — 107 Total current assets — — 306 — 306 Property, plant and equipment, net — — 3,476 — 3,476 Goodwill and intangible assets, net — — 184 — 184 Advances receivable — consolidated subsidiaries 2,159 2,023 — (4,182 ) — Investments in consolidated subsidiaries 613 1,033 — (1,646 ) — Investments in unconsolidated affiliates — — 1,493 — 1,493 Other long-term assets — — 18 — 18 Total assets $ 2,772 $ 3,056 $ 5,477 $ (5,828 ) $ 5,477 LIABILITIES AND EQUITY Accounts payable and other current liabilities $ — $ 19 $ 181 $ — $ 200 Advances payable — consolidated subsidiaries — — 4,182 (4,182 ) — Long-term debt — 2,424 — — 2,424 Other long-term liabilities — — 48 — 48 Total liabilities — 2,443 4,411 (4,182 ) 2,672 Commitments and contingent liabilities Equity: Partners’ equity: Net equity 2,772 616 1,038 (1,646 ) 2,780 Accumulated other comprehensive loss — (3 ) (5 ) — (8 ) Total partners’ equity 2,772 613 1,033 (1,646 ) 2,772 Noncontrolling interests — — 33 — 33 Total equity 2,772 613 1,066 (1,646 ) 2,805 Total liabilities and equity $ 2,772 $ 3,056 $ 5,477 $ (5,828 ) $ 5,477 |
Condensed Income Statement [Table Text Block] | Condensed Consolidating Statement of Operations Three Months Ended March 31, 2016 Parent Guarantor Subsidiary Issuer Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) Operating revenues: Sales of natural gas, propane, NGLs and condensate $ — $ — $ 267 $ — $ 267 Transportation, processing and other — — 103 — 103 Gains from commodity derivative activity, net — — 9 — 9 Total operating revenues — — 379 — 379 Operating costs and expenses: Purchases of natural gas, propane and NGLs — — 231 — 231 Operating and maintenance expense — — 48 — 48 Depreciation and amortization expense — — 32 — 32 General and administrative expense — — 21 — 21 Total operating costs and expenses — — 332 — 332 Operating income — — 47 — 47 Interest expense — (24 ) — — (24 ) Income from consolidated subsidiaries 72 96 — (168 ) — Earnings from unconsolidated affiliates — — 49 — 49 Income before income taxes 72 72 96 (168 ) 72 Income tax expense — — — — — Net income 72 72 96 (168 ) 72 Net income attributable to noncontrolling interests — — — — — Net income attributable to partners $ 72 $ 72 $ 96 $ (168 ) $ 72 Condensed Consolidating Statement of Operations Three Months Ended March 31, 2015 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) Operating revenues: Sales of natural gas, propane, NGLs and condensate $ — $ — $ 470 $ — $ 470 Transportation, processing and other — — 79 — 79 Gains from commodity derivative activity, net — — 19 — 19 Total operating revenues — — 568 — 568 Operating costs and expenses: Purchases of natural gas, propane and NGLs — — 402 — 402 Operating and maintenance expense — — 47 — 47 Depreciation and amortization expense — — 29 — 29 General and administrative expense — — 21 — 21 Total operating costs and expenses — — 499 — 499 Operating income — — 69 — 69 Interest expense, net — (22 ) — — (22 ) Income from consolidated subsidiaries 69 91 — (160 ) — Earnings from unconsolidated affiliates — — 23 — 23 Income before income taxes 69 69 92 (160 ) 70 Income tax expense — — (1 ) — (1 ) Net income 69 69 91 (160 ) 69 Net income attributable to noncontrolling interests — — — — — Net income attributable to partners $ 69 $ 69 $ 91 $ (160 ) $ 69 |
Condensed Statement of Comprehensive Income [Table Text Block] | Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2015 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) Net income $ 69 $ 69 $ 91 $ (160 ) $ 69 Other comprehensive income: Reclassification of cash flow hedge losses into earnings — 1 — — 1 Other comprehensive income from consolidated subsidiaries 1 — — (1 ) — Total other comprehensive income 1 1 — (1 ) 1 Total comprehensive income 70 70 91 (161 ) 70 Total comprehensive income attributable to noncontrolling interests — — — — — Total comprehensive income attributable to partners $ 70 $ 70 $ 91 $ (161 ) $ 70 Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2016 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) Net income $ 72 $ 72 $ 96 $ (168 ) $ 72 Other comprehensive income: Reclassification of cash flow hedge losses into earnings — — — — — Other comprehensive income from consolidated subsidiaries — — — — — Total other comprehensive income — — — — — Total comprehensive income 72 72 96 (168 ) 72 Total comprehensive income attributable to noncontrolling interests — — — — — Total comprehensive income attributable to partners $ 72 $ 72 $ 96 $ (168 ) $ 72 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2016 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (11 ) $ 199 $ — $ 188 INVESTING ACTIVITIES: Intercompany transfers 121 59 — (180 ) — Capital expenditures — — (10 ) — (10 ) Investments in unconsolidated affiliates — — (8 ) — (8 ) Net cash provided by (used in) investing activities 121 59 (18 ) (180 ) (18 ) FINANCING ACTIVITIES: Intercompany transfers — — (180 ) 180 — Proceeds from long-term debt — 394 — — 394 Payments of long-term debt — (442 ) — — (442 ) Distributions to limited partners and general partner (121 ) — — — (121 ) Distributions to noncontrolling interests — — (2 ) — (2 ) Net cash (used in) provided by financing activities (121 ) (48 ) (182 ) 180 (171 ) Net change in cash and cash equivalents — — (1 ) — (1 ) Cash and cash equivalents, beginning of period — — 2 — 2 Cash and cash equivalents, end of period $ — $ — $ 1 $ — $ 1 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2015 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (Millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (8 ) $ 196 $ — $ 188 INVESTING ACTIVITIES: Intercompany transfers 89 16 — (105 ) — Capital expenditures — — (65 ) — (65 ) Investments in unconsolidated affiliates — — (25 ) — (25 ) Net cash used in investing activities 89 16 (90 ) (105 ) (90 ) FINANCING ACTIVITIES: Intercompany transfers — — (105 ) 105 — Proceeds from long-term debt — 162 — — 162 Payments of long-term debt — (162 ) — — (162 ) Proceeds from issuance of common units, net of offering costs 31 — — — 31 Distributions to limited partners and general partner (120 ) — — — (120 ) Distributions to noncontrolling interests — — (1 ) — (1 ) Net cash provided by financing activities (89 ) — (106 ) 105 (90 ) Net change in cash and cash equivalents — 8 — — 8 Cash and cash equivalents, beginning of period — 24 1 — 25 Cash and cash equivalents, end of period $ — $ 32 $ 1 $ — $ 33 |
Description of Business and B40
Description of Business and Basis of Presentation - Additional Information (Detail) | Mar. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Ownership interest percentage by parent | 100.00% | |
Investments in Greater Than 20% [Member] | ||
Business Acquisition [Line Items] | ||
Equity Method Investment, Ownership Percentage | 20.00% | |
Investments in Less Than 20% [Member] | ||
Business Acquisition [Line Items] | ||
Equity Method Investment, Ownership Percentage | 20.00% | |
Phillips 66 [Member] | ||
Business Acquisition [Line Items] | ||
Ownership interest percentage by parent | 50.00% | |
Spectra Energy [Member] | ||
Business Acquisition [Line Items] | ||
Ownership interest percentage by parent | 50.00% | |
DCP Midstream, LLC [Member] | ||
Business Acquisition [Line Items] | ||
Ownership interest percentage by parent | 21.40% |
New Accounting Pronouncements41
New Accounting Pronouncements (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
debt issuance cost [Abstract] | ||
Unamortized Debt Issuance Expense | $ 14 | $ 14 |
Agreements and Transactions w42
Agreements and Transactions with Affiliates - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Other fees - DCP Midstream, LLC | $ 1 | $ 0 |
Transportation, processing and other | 103 | 79 |
DCP Midstream, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Other fees - DCP Midstream, LLC | 1 | |
Affiliated Entity [Member] | DCP Midstream, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Transportation, processing and other | $ 42 | $ 23 |
Agreements and Transactions w43
Agreements and Transactions with Affiliates - Schedule of Fees Incurred and Other Fees Paid (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Services/Omnibus Agreement | $ 18 | $ 18 |
Other fees - DCP Midstream, LLC | 1 | 0 |
Total - DCP Midstream, LLC | 21 | 21 |
Related Party Transaction, Amounts of Transaction | 71 | |
Transportation, processing and other | 103 | 79 |
DCP Midstream, LLC [Member] | ||
Other fees - DCP Midstream, LLC | 1 | |
DCP Midstream, LLC [Member] | Affiliated Entity [Member] | ||
Total - DCP Midstream, LLC | 19 | 18 |
Transportation, processing and other | $ 42 | 23 |
Maximum [Member] | DCP Midstream, LLC [Member] | ||
Other fees - DCP Midstream, LLC | $ 1 |
Agreements and Transactions w44
Agreements and Transactions with Affiliates - Transactions with Affiliates (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Sales of natural gas, propane, NGLs and condensate | $ 267 | $ 470 |
Transportation, processing and other | 103 | 79 |
Purchases of natural gas, propane and NGLs | 231 | 402 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 9 | 19 |
Operating and maintenance expense | 48 | 47 |
General and administrative expense | 21 | 21 |
Affiliated Entity [Member] | DCP Midstream, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Sales of natural gas, propane, NGLs and condensate | 162 | 281 |
Transportation, processing and other | 42 | 23 |
Purchases of natural gas, propane and NGLs | 14 | 25 |
General and administrative expense | 19 | 18 |
Affiliated Entity [Member] | DCP Midstream, LLC [Member] | Commodity Derivatives [Member] | ||
Related Party Transaction [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | 5 | 14 |
Affiliated Entity [Member] | Spectra Energy [Member] | ||
Related Party Transaction [Line Items] | ||
Purchases of natural gas, propane and NGLs | $ 9 | $ 10 |
Agreements and Transactions w45
Agreements and Transactions with Affiliates - Balances with Affiliates (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Accounts receivable | $ 72 | $ 81 |
Accounts payable | 20 | 19 |
DCP Midstream, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable | 72 | 81 |
Accounts payable | 16 | 15 |
Unrealized gains on derivative instruments - current | 12 | 32 |
Unrealized gains on derivative instruments - long-term | 7 | 9 |
Unrealized losses on derivative instruments - current | 5 | 18 |
Unrealized losses on derivative instruments - long-term | 0 | 1 |
Spectra Energy [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable | $ 4 | $ 4 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Components Of Inventory [Line Items] | ||
Total inventories | $ 37 | $ 43 |
Natural Gas [Member] | ||
Components Of Inventory [Line Items] | ||
Total inventories | 23 | 29 |
Natural Gas Liquids [Member] | ||
Components Of Inventory [Line Items] | ||
Total inventories | $ 14 | $ 14 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Inventory Disclosure [Abstract] | ||
Inventory Write-down | $ 3 | $ 4 |
Property, Plant and Equipment -
Property, Plant and Equipment - Classification of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 4,850 | $ 4,850 | |
Accumulated depreciation | (1,404) | (1,374) | |
Property, plant and equipment, net | 3,446 | 3,476 | |
Interest Costs Capitalized | 1 | $ 3 | |
Depreciation | 30 | $ 26 | |
Gathering and Transmission Systems [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 2,340 | 2,337 | |
Gathering and Transmission Systems [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life of property, plant and equipment | 20 years | ||
Gathering and Transmission Systems [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life of property, plant and equipment | 50 years | ||
Processing, Storage, and Terminal Facilities [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 2,362 | 2,327 | |
Processing, Storage, and Terminal Facilities [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life of property, plant and equipment | 35 years | ||
Processing, Storage, and Terminal Facilities [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life of property, plant and equipment | 60 years | ||
Other Energy Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 66 | 64 | |
Other Energy Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life of property, plant and equipment | 3 years | ||
Other Energy Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life of property, plant and equipment | 30 years | ||
Construction Work In Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 82 | $ 122 |
Property, Plant and Equipment49
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Interest Costs Capitalized | $ 1 | $ 3 |
Depreciation | $ 30 | $ 26 |
Goodwill and Intangible assets
Goodwill and Intangible assets Schedule of Goodwill (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Goodwill [Line Items] | ||
Goodwill | $ 72 | $ 72 |
Goodwill and Intangible asset51
Goodwill and Intangible assets Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets, net | $ 110 | $ 112 |
Goodwill and Intangible asset52
Goodwill and Intangible assets Finite-Lived Intangible Assets, Future Amortization (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 110 | $ 112 |
Investments In Unconsolidated53
Investments In Unconsolidated Affiliates - Investments In Unconsolidated Affiliates (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Investments in and Advances to Affiliates [Line Items] | ||
Investments in unconsolidated affiliates | $ 1,486 | $ 1,493 |
Sand Hills Pipeline [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investments in unconsolidated affiliates | $ 442 | 441 |
Discovery Producer Services LLC [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity Method Investment, Ownership Percentage | 40.00% | |
Investments in unconsolidated affiliates | $ 397 | 406 |
Southern Hills Pipeline [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity Method Investment, Ownership Percentage | 33.33% | |
Investments in unconsolidated affiliates | $ 317 | 318 |
Front Range Pipeline LLC [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity Method Investment, Ownership Percentage | 33.33% | |
Investments in unconsolidated affiliates | $ 170 | 170 |
Texas Express Pipeline [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity Method Investment, Ownership Percentage | 10.00% | |
Investments in unconsolidated affiliates | $ 95 | 96 |
Mont Belvieu Enterprise Fractionator [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity Method Investment, Ownership Percentage | 12.50% | |
Investments in unconsolidated affiliates | $ 23 | 25 |
Mont Belvieu 1 Fractionator [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity Method Investment, Ownership Percentage | 20.00% | |
Investments in unconsolidated affiliates | $ 11 | 11 |
Panola [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity Method Investment, Ownership Percentage | 15.00% | |
Investments in unconsolidated affiliates | $ 24 | 19 |
Other [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Ownership interest percentage description | Various | |
Investments in unconsolidated affiliates | $ 7 | $ 7 |
Investments in Unconsolidated54
Investments in Unconsolidated Affiliates - Earnings from Investments in Unconsolidated Affiliates (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Investments in and Advances to Affiliates [Line Items] | ||
Earnings from unconsolidated affiliates | $ 49 | $ 23 |
Sand Hills Pipeline [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Earnings from unconsolidated affiliates | 14 | 11 |
Mont Belvieu 1 Fractionator [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Earnings from unconsolidated affiliates | 2 | 1 |
Southern Hills Pipeline [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Earnings from unconsolidated affiliates | 7 | 3 |
Mont Belvieu Enterprise Fractionator [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Earnings from unconsolidated affiliates | 4 | 4 |
Discovery Producer Services LLC [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Earnings from unconsolidated affiliates | 15 | (2) |
Texas Express [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Earnings from unconsolidated affiliates | 2 | 2 |
Front Range [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Earnings from unconsolidated affiliates | $ 5 | $ 4 |
Investments in Unconsolidated55
Investments in Unconsolidated Affiliates - Equity Method Investment Summarized Financial Information, Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Operating revenue | $ 308 | $ 233 |
Operating expenses | 128 | 129 |
Net income | $ 178 | $ 103 |
Investments in Unconsolidated56
Investments in Unconsolidated Affiliates - Equity Method Investment Summarized Financial Information, Balance Sheet (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 176 | $ 182 |
Long-term assets | 5,183 | 5,200 |
Current liabilities | (140) | (170) |
Long-term liabilities | (231) | (216) |
Net assets | $ 4,988 | $ 4,996 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Instruments Carried at Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Current Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | $ 1 | $ 2 | |
Commodity Derivative [Member] | Current Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [1] | 48 | 105 |
Commodity Derivative [Member] | Long-Term Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [2] | 7 | 9 |
Commodity Derivative [Member] | Current Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [3] | (5) | (18) |
Commodity Derivative [Member] | Long-Term Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [4] | 0 | (1) |
Level 1 [Member] | Current Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 1 | 2 | |
Level 1 [Member] | Commodity Derivative [Member] | Current Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [1] | 0 | 0 |
Level 1 [Member] | Commodity Derivative [Member] | Long-Term Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [2] | 0 | 0 |
Level 1 [Member] | Commodity Derivative [Member] | Current Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [3] | 0 | 0 |
Level 1 [Member] | Commodity Derivative [Member] | Long-Term Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [4] | 0 | 0 |
Level 2 [Member] | Current Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 0 | 0 | |
Level 2 [Member] | Commodity Derivative [Member] | Current Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [1] | 48 | 83 |
Level 2 [Member] | Commodity Derivative [Member] | Long-Term Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [2] | 7 | 9 |
Level 2 [Member] | Commodity Derivative [Member] | Current Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [3] | (5) | (18) |
Level 2 [Member] | Commodity Derivative [Member] | Long-Term Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [4] | 0 | (1) |
Level 3 [Member] | Current Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 0 | 0 | |
Level 3 [Member] | Commodity Derivative [Member] | Current Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [1] | 0 | 22 |
Level 3 [Member] | Commodity Derivative [Member] | Long-Term Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [2] | 0 | 0 |
Level 3 [Member] | Commodity Derivative [Member] | Current Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [3] | 0 | 0 |
Level 3 [Member] | Commodity Derivative [Member] | Long-Term Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivatives | [4] | $ 0 | $ 0 |
[1] | Included in current unrealized gains on derivative instruments in our condensed consolidated balance sheets. | ||
[2] | Included in long-term unrealized gains on derivative instruments in our condensed consolidated balance sheets. | ||
[3] | Included in current unrealized losses on derivative instruments in our condensed consolidated balance sheets. | ||
[4] | . |
Fair Value Measurement - Conden
Fair Value Measurement - Condensed Consolidated Balance Sheets for Derivative Financial Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Current Assets [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | [1] | $ 22 | $ 138 |
Net realized and unrealized gains (losses) included in earnings | [1],[2] | 20 | |
Settlements | [1] | (22) | (40) |
Ending balance | [1] | 0 | 118 |
Net unrealized gains still held included in earnings | [1],[2] | 20 | |
Long-Term Assets [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | [1] | 0 | 18 |
Net realized and unrealized gains (losses) included in earnings | [1],[2] | (18) | |
Settlements | [1] | 0 | 0 |
Ending balance | [1] | 0 | 0 |
Net unrealized gains still held included in earnings | [1],[2] | (18) | |
Current Liabilities [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | [1] | 0 | 0 |
Net realized and unrealized (losses) gains included in earnings | [1],[2] | 0 | |
Settlements | [1] | 0 | 0 |
Ending balance | [1] | 0 | 0 |
Net unrealized gains (losses) still held included in earnings | [1],[2] | 0 | |
Long-Term Liabilities [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | [1] | 0 | 0 |
Net realized and unrealized (losses) gains included in earnings | [1],[2] | 0 | |
Settlements | [1] | 0 | 0 |
Ending balance | [1] | $ 0 | 0 |
Net unrealized gains (losses) still held included in earnings | [1],[2] | $ 0 | |
[1] | There were no purchases, issuances or sales of derivatives or transfers into/out of Level 3 for the three months ended March 31, 2016 and 2015. | ||
[2] | Represents the amount of total gains or losses for the period, included in gains or losses from commodity derivative activity, net. |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Valuation Processes (Detail) | Mar. 31, 2016$ / MMBTU$ / gal$ / Gallon |
Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | Derivative Financial Instruments, Assets [Member] | Natural Gas Liquids [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward Curve Range | $ / gal | 0.16 |
Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | Derivative Financial Instruments, Assets [Member] | Natural Gas Liquids [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward Curve Range | $ / Gallon | 0.90 |
Senior Notes, 3.25% Due 2015 [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Senior notes interest rate percentage | 3.25% |
Senior Notes, 2.50% Due 2017 [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Senior notes interest rate percentage | 2.50% |
Senior Notes Five Point Six Zero Percent Due Two Thousand Forty Four [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Senior notes interest rate percentage | 5.60% |
Senior Notes Two Point Seven Zero Percent Due Two Thousand Nineteen [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Senior notes interest rate percentage | 2.70% |
Senior Notes, 4.95% Due 2022 [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Senior notes interest rate percentage | 4.95% |
Senior Notes, 3.875% Due 2023 [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Senior notes interest rate percentage | 3.875% |
Derivative Financial Instruments, Liabilities [Member] | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | Natural Gas Liquids [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward Curve Range | 0 |
Derivative Financial Instruments, Liabilities [Member] | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | Natural Gas Liquids [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward Curve Range | 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Carrying Amount | $ 2,064 | $ 2,063 |
Debt Instrument, Fair Value | $ 1,770 | 1,650 |
Senior Notes, 3.875% Due 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes interest rate percentage | 3.875% | |
Senior Notes, 2.50% Due 2017 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes interest rate percentage | 2.50% | |
Senior Notes Two Point Seven Zero Percent Due Two Thousand Nineteen [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes interest rate percentage | 2.70% | |
Senior Notes, 4.95% Due 2022 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes interest rate percentage | 4.95% | |
Senior Notes, 3.25% Due 2015 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes interest rate percentage | 3.25% | |
Senior Notes Five Point Six Zero Percent Due Two Thousand Forty Four [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes interest rate percentage | 5.60% | |
Credit Agreement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value of outstanding balances | $ 327 | 375 |
Fair value of outstanding balances | $ 327 | $ 375 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||
Unamortized Debt Issuance Expense | $ (14) | $ (14) | |
Unamortized discount | (11) | (12) | |
Total long-term debt | 2,377 | 2,424 | |
Senior Notes, 3.875% Due 2023 [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Securities Issued Amount | 500 | 500 | |
Senior Notes Five Point Six Zero Percent Due Two Thousand Forty Four [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Securities Issued Amount | 400 | 400 | |
Senior Notes, 2.50% Due 2017 [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Securities Issued Amount | 500 | 500 | |
Senior Notes, 4.95% Due 2022 [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Securities Issued Amount | 350 | 350 | |
Senior Notes Two Point Seven Zero Percent Due Two Thousand Nineteen [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Securities Issued Amount | 325 | 325 | |
Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility, weighted-average variable interest rate of 1.72% and 1.57%, as of March 31, 2016 and December 31, 2015, respectively, due May 1, 2019 | [1] | $ 327 | $ 375 |
[1] | March 31, 2016 December 31, 2015 (Millions)Amended and Restated Credit Agreement Revolving credit facility, weighted-average variable interest rate of 1.72% and 1.57%, as of March 31, 2016 and December 31, 2015, respectively, due May 1, 2019$327 $375Debt Securities Issued November 27, 2012, interest at 2.50% payable semi-annually, due December 1, 2017500 500Issued March 13, 2014, interest at 2.70% payable semi-annually, due April 1, 2019325 325Issued March 13, 2012, interest at 4.95% payable semi-annually, due April 1, 2022350 350Issued March 14, 2013, interest at 3.875% payable semi-annually, due March 15, 2023500 500Issued March 13, 2014, interest at 5.60% payable semi-annually, due April 1, 2044400 400Unamortized issuance costs(14) (14)Unamortized discount(11) (12)Total long-term debt$2,377 $2,424 |
Debt - Schedule of Long-Term 62
Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maturity date | May 1, 2019 | ||
Fair value of outstanding balances | [1] | $ 327 | $ 375 |
Senior Notes, 3.875% Due 2023 [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior notes interest rate percentage | 3.875% | ||
Maturity date | Mar. 15, 2023 | ||
Senior Notes, 2.50% Due 2017 [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior notes interest rate percentage | 2.50% | ||
Maturity date | Dec. 1, 2017 | ||
Senior Notes, 4.95% Due 2022 [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior notes interest rate percentage | 4.95% | ||
Maturity date | Apr. 1, 2022 | ||
Senior Notes, 3.25% Due 2015 [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior notes interest rate percentage | 3.25% | ||
Maturity date | Oct. 1, 2015 | ||
[1] | March 31, 2016 December 31, 2015 (Millions)Amended and Restated Credit Agreement Revolving credit facility, weighted-average variable interest rate of 1.72% and 1.57%, as of March 31, 2016 and December 31, 2015, respectively, due May 1, 2019$327 $375Debt Securities Issued November 27, 2012, interest at 2.50% payable semi-annually, due December 1, 2017500 500Issued March 13, 2014, interest at 2.70% payable semi-annually, due April 1, 2019325 325Issued March 13, 2012, interest at 4.95% payable semi-annually, due April 1, 2022350 350Issued March 14, 2013, interest at 3.875% payable semi-annually, due March 15, 2023500 500Issued March 13, 2014, interest at 5.60% payable semi-annually, due April 1, 2044400 400Unamortized issuance costs(14) (14)Unamortized discount(11) (12)Total long-term debt$2,377 $2,424 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Proceeds from long-term debt | $ 394 | $ 162 | |
Senior Notes Two Point Seven Zero Percent Due Two Thousand Nineteen [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes issued | $ 325 | $ 325 | |
Senior notes interest rate percentage | 2.70% | ||
Senior Notes Five Point Six Zero Percent Due Two Thousand Forty Four [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes issued | $ 400 | 400 | |
Senior notes interest rate percentage | 5.60% | ||
Senior Notes, 3.875% Due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes issued | $ 500 | 500 | |
Senior notes interest rate percentage | 3.875% | ||
Maturity date | Mar. 15, 2023 | ||
Senior Notes, 2.50% Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes issued | $ 500 | 500 | |
Senior notes interest rate percentage | 2.50% | ||
Maturity date | Dec. 1, 2017 | ||
Senior Notes, 4.95% Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes issued | $ 350 | $ 350 | |
Senior notes interest rate percentage | 4.95% | ||
Maturity date | Apr. 1, 2022 | ||
Senior Notes, 3.25% Due 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes interest rate percentage | 3.25% | ||
Maturity date | Oct. 1, 2015 | ||
Eagle Ford System [Member] | Senior Notes, 3.875% Due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 46.67% | ||
Amended and Restated Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 | ||
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maturity date | May 1, 2019 | ||
Unused capacity under the credit agreement | $ 922 | ||
Basis spread determined by credit rating | 0.275% | ||
Commitment fee percentage | 0.23% | ||
London Interbank Offered Rate (LIBOR) [Member] | Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate basis spread | 1.275% | ||
Federal Funds Effective Swap Rate [Member] | Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate basis spread | 0.50% | ||
London Interbank Offered Rate (LIBOR) Market Index [Member] | Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate basis spread | 1.00% | ||
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Letters of credit issued | $ 1 | ||
Letters of credit outstanding | $ 1 | $ 1 | |
Minimum [Member] | Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Maximum leverage ratio | 1 | ||
Temporary maximum leverage ratio post-acquisition | 1 | ||
Maximum [Member] | Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Maximum leverage ratio | 5 | ||
Temporary maximum leverage ratio post-acquisition | 5.5 |
Debt - Future Maturities of Lon
Debt - Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Maturities of Long-term Debt [Abstract] | ||
2,014 | $ 500 | |
2,015 | 0 | |
2,016 | 652 | |
2,017 | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | |
Thereafter | 1,250 | |
Total principal | 2,402 | |
Unamortized Debt Issuance Expense | 14 | $ 14 |
Unamortized discount | (11) | $ (12) |
Total | $ 2,377 |
Risk Management and Hedging A65
Risk Management and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||||
Accumulated other comprehensive loss | $ (8) | $ (8) | ||
Common unitholders, units issued | 114,742,948 | 114,740,148 | ||
Commodity Derivatives [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ (1) | |||
Cash Flow Hedge [Member] | ||||
Derivative [Line Items] | ||||
Accumulated other comprehensive loss | (8) | $ (8) | $ (8) | $ (9) |
Cash Flow Hedge [Member] | Commodity Derivatives [Member] | ||||
Derivative [Line Items] | ||||
Accumulated other comprehensive loss | (6) | (6) | (6) | (6) |
Cash Flow Hedge [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Accumulated other comprehensive loss | $ (3) | $ (3) | $ (3) | $ (4) |
Senior Notes, 4.95% Due 2022 [Member] | ||||
Derivative [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.95% |
Risk Management and Hedging A66
Risk Management and Hedging Activities - Summary of Gross and Net Amounts of Derivative Instruments (Detail) - Commodity Derivatives [Member] - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | |||
Gross Amounts of Assets Presented in the Balance Sheet | $ 55 | $ 114 | |
Amounts Not Offset in the Balance Sheet - Financial Instruments | [1] | (5) | (19) |
Net Amount, Assets | 50 | 95 | |
Gross Amounts of Liabilities Presented in the Balance Sheet | (5) | (19) | |
Amounts Not Offset in the Balance Sheet - Financial Instruments | [1] | 5 | 19 |
Net Amount, Liabilities | $ 0 | $ 0 | |
[1] | There is no cash collateral pledged or received against these positions. |
Risk Management and Hedging A67
Risk Management and Hedging Activities - Schedule of Designated and Non-Designated Derivative Instruments in Statement of Financial Position, Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Asset [Abstract] | ||
Unrealized gains on derivative instruments - current | $ 48 | $ 105 |
Unrealized gains on derivative instruments - long-term | 7 | 9 |
Derivative Liability [Abstract] | ||
Unrealized losses on derivative instruments - long-term | 0 | (1) |
Commodity Derivatives [Member] | Derivative Asset Not Designated As Hedging Instruments [Member] | ||
Derivative Asset [Abstract] | ||
Unrealized gains on derivative instruments - current | 48 | 105 |
Unrealized gains on derivative instruments - long-term | 7 | 9 |
Derivative assets, fair value, total | 55 | 114 |
Commodity Derivatives [Member] | Derivative Liabilities Not Designated As Hedging Instruments [Member] | ||
Derivative Liability [Abstract] | ||
Unrealized gains on derivative instruments - current | 5 | 18 |
Unrealized losses on derivative instruments - long-term | 0 | (1) |
Derivative liabilities, fair value, total | $ (5) | $ (19) |
Risk Management and Hedging A68
Risk Management and Hedging Activities - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Detail) - Cash Flow Hedge [Member] $ in Millions | 3 Months Ended | |
Mar. 31, 2015USD ($) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Net deferred (losses) gains in AOCI (beginning balance) | $ (9) | |
Gains (losses) recognized in AOCI on derivatives - effective portion | 1 | |
Net deferred losses in AOCI (ending balance) | (8) | |
Interest Rate Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Net deferred (losses) gains in AOCI (beginning balance) | (4) | |
Gains (losses) recognized in AOCI on derivatives - effective portion | 1 | [1] |
Net deferred losses in AOCI (ending balance) | (3) | |
Commodity Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Net deferred (losses) gains in AOCI (beginning balance) | (6) | |
Gains (losses) recognized in AOCI on derivatives - effective portion | 0 | |
Net deferred losses in AOCI (ending balance) | (6) | |
Foreign Currency Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Net deferred (losses) gains in AOCI (beginning balance) | 1 | |
Gains (losses) recognized in AOCI on derivatives - effective portion | 0 | [2] |
Net deferred losses in AOCI (ending balance) | $ 1 | [2] |
[1] | . | |
[2] | Relates to Discovery, an unconsolidated affiliate. |
Risk Management and Hedging A69
Risk Management and Hedging Activities - Schedule of Derivatives Accounted for as Cash Flow Hedges (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Commodity Derivatives [Member] | |
Derivative [Line Items] | |
Losses Recognized in Income on Derivatives - Ineffective Portion and Amount Excluded From Effectiveness Testing | $ 1 |
Risk Management and Hedging A70
Risk Management and Hedging Activities - Schedule of Derivatives Accounted for as Cash Flow Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Derivative [Line Items] | ||||||||
Accumulated other comprehensive loss | $ (8) | $ (8) | ||||||
Commodity Derivatives [Member] | ||||||||
Derivative [Line Items] | ||||||||
Losses Recognized in Income on Derivatives - Ineffective Portion and Amount Excluded From Effectiveness Testing | (1) | |||||||
Cash Flow Hedge [Member] | ||||||||
Derivative [Line Items] | ||||||||
Accumulated other comprehensive loss | (8) | $ (8) | (8) | $ (9) | ||||
Losses Reclassified From AOCI to Earnings-Effective Portion | 1 | |||||||
Cash Flow Hedge [Member] | Interest Rate Derivatives [Member] | ||||||||
Derivative [Line Items] | ||||||||
Accumulated other comprehensive loss | (3) | (3) | (3) | (4) | ||||
Losses Reclassified From AOCI to Earnings-Effective Portion | [1] | 1 | ||||||
Cash Flow Hedge [Member] | Commodity Derivatives [Member] | ||||||||
Derivative [Line Items] | ||||||||
Accumulated other comprehensive loss | (6) | (6) | (6) | (6) | ||||
Losses Reclassified From AOCI to Earnings-Effective Portion | 0 | |||||||
Cash Flow Hedge [Member] | Foreign Currency Derivatives [Member] | ||||||||
Derivative [Line Items] | ||||||||
Accumulated other comprehensive loss | $ 1 | [2] | 1 | [2] | $ 1 | [2] | $ 1 | |
Losses Reclassified From AOCI to Earnings-Effective Portion | [2] | $ 0 | ||||||
[1] | . | |||||||
[2] | Relates to Discovery, an unconsolidated affiliate. |
Risk Management and Hedging A71
Risk Management and Hedging Activities - Schedule of Changes in Derivative Instruments not Designated as Hedging Instruments (Detail) - Derivative Assets Not Designated As Hedging Instruments [Member] - Commodity Derivatives [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Affiliates [Member] | ||
Derivative [Line Items] | ||
Realized | $ 14 | $ 54 |
Unrealized | (9) | (40) |
(Losses) gains from commodity derivative activity, net | 5 | 14 |
Third Party [Member] | ||
Derivative [Line Items] | ||
Realized | 40 | 7 |
Unrealized | (36) | (2) |
(Losses) gains from commodity derivative activity, net | $ 4 | $ 5 |
Risk Management and Hedging A72
Risk Management and Hedging Activities - Schedule of Net Long or Short Positions Expected to be Realized (Detail) | 3 Months Ended | |
Mar. 31, 2016MMBTUbbl | Mar. 31, 2015MMBTUbbl | |
Crude Oil [Member] | ||
Net (Short) Position, Volume [Abstract] | ||
Net (Short) Position (Bbls), 2013 | bbl | (561,825) | |
Net (Short) Position (Bbls), 2014 | bbl | (1,100,000) | (561,922) |
Net (Short) Position (Bbls), 2015 | bbl | 0 | 0 |
Natural Gas [Member] | ||
Derivative [Line Items] | ||
Net Long (Short) Position (MMBtu), 2013 | MMBTU | (12,429,125) | |
Net Long (Short) Position (MMBtu), 2014 | MMBTU | (9,282,500) | (5,668,564) |
Net Long (Short) Position (MMBtu), 2015 | MMBTU | (12,817,500) | (6,387,500) |
Natural Gas Liquids [Member] | ||
Net (Short) Position, Volume [Abstract] | ||
Net (Short) Position (Bbls), 2013 | bbl | 4,231,200 | |
Net (Short) Position (Bbls), 2014 | bbl | (180,000) | (813,267) |
Net (Short) Position (Bbls), 2015 | bbl | 0 | 0 |
Natural Gas Basis Swaps [Member] | ||
Derivative [Line Items] | ||
Net Long (Short) Position (MMBtu), 2013 | MMBTU | 2,675,000 | |
Net Long (Short) Position (MMBtu), 2014 | MMBTU | 2,060,000 | 1,690,000 |
Net Long (Short) Position (MMBtu), 2015 | MMBTU | 1,800,000 | 0 |
Partnership Equity and Distri73
Partnership Equity and Distributions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2015 | |
Partnership Equity And Distribution [Line Items] | ||||
Common unitholders, units issued | 114,742,948 | 114,740,148 | ||
Issuance of common units | 788,033 | |||
Sand Hills Pipeline [Member] | ||||
Partnership Equity And Distribution [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 33.33% | |||
2014 Equity Distribution Agreement [Member] | ||||
Partnership Equity And Distribution [Line Items] | ||||
Common unitholders, units issued | 788,033 | |||
Proceeds from issuance of common stock | $ 31 | |||
Offering costs | 1 | |||
Equity Distribution Agreement [Member] | ||||
Partnership Equity And Distribution [Line Items] | ||||
Offer value of common stock remaining available for sale | $ 349 | |||
Limited Partners [Member] | ||||
Partnership Equity And Distribution [Line Items] | ||||
Issuance of common units | 0 |
Partnership Equity and Distri74
Partnership Equity and Distributions - Cash Distribution (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Partnership Equity And Distribution [Line Items] | ||
Total Cash Distribution (Millions) | $ 121 | $ 120 |
February twelfth Two Thousand Sixteen [Member] | ||
Partnership Equity And Distribution [Line Items] | ||
Per Unit Distribution | $ 0.78 | |
Total Cash Distribution (Millions) | $ 121 | |
November thirteen Two Thousand Fifteen [Member] | ||
Partnership Equity And Distribution [Line Items] | ||
Per Unit Distribution | $ 0.78 | |
Total Cash Distribution (Millions) | $ 120 | |
august fourteen Two Thousand Fifteen [Member] [Member] [Member] | ||
Partnership Equity And Distribution [Line Items] | ||
Per Unit Distribution | $ 0.78 | |
Total Cash Distribution (Millions) | $ 121 | |
May Fifteen Two Thousand Fifteen [Member] [Member] | ||
Partnership Equity And Distribution [Line Items] | ||
Per Unit Distribution | $ 0.78 | |
Total Cash Distribution (Millions) | $ 121 | |
February Thirteen Two Thousand Fifteen [Member] | ||
Partnership Equity And Distribution [Line Items] | ||
Per Unit Distribution | $ 0.78 | |
Total Cash Distribution (Millions) | $ 120 |
Net Income or Loss per Limite75
Net Income or Loss per Limited Partner Unit - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Weighted Average Number Diluted Limited Partnership Units Outstanding Adjustment | 1,604 | 11,572.5919415206 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 0 | $ 1 |
Business Segments - Additional
Business Segments - Additional Information (Detail) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016USD ($)SegmentProject | Mar. 31, 2015USD ($)Project | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | $ 379 | $ 568 | ||
Number of reporting segments | Segment | 3 | |||
Ownership interest percentage | 100.00% | |||
Number of owned and operated rail terminals | Project | 6 | |||
Number of owned marine import terminals | Project | 1 | |||
Number of leased marine terminals | Project | 1 | |||
Pipeline Terminals | Project | 1 | |||
Gross margin | $ 148 | $ 166 | [1] | |
Other Cost and Expense, Operating | (48) | (47) | ||
Depreciation, Depletion and Amortization, Nonproduction | (32) | (29) | ||
General and Administrative Expense | (21) | (21) | ||
Earnings from unconsolidated affiliates | 49 | 23 | ||
Interest expense | (24) | (22) | ||
Income tax expense | 0 | (1) | ||
Net income | 72 | 69 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net Income (Loss) Attributable to Parent | 72 | 69 | ||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | (45) | (43) | ||
Capital expenditures | 10 | 65 | ||
Investments in unconsolidated affiliates, net | $ 8 | 25 | ||
Sand Hills Pipeline [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 33.33% | |||
Natural Gas Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | $ 305 | 440 | ||
Gross margin | 111 | 119 | ||
Other Cost and Expense, Operating | (40) | (40) | ||
Depreciation, Depletion and Amortization, Nonproduction | (29) | (26) | ||
General and Administrative Expense | 0 | 0 | ||
Earnings from unconsolidated affiliates | 15 | (2) | ||
Interest expense | 0 | 0 | ||
Income tax expense | 0 | |||
Net income | 57 | 51 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net Income (Loss) Attributable to Parent | 57 | 51 | ||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | (45) | (45) | ||
Capital expenditures | 9 | 50 | ||
Investments in unconsolidated affiliates, net | $ 0 | 12 | ||
Colorado [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Ownership interest percentage | 75.00% | |||
Discovery Producer Services LLC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40.00% | |||
Mont Belvieu 1 Fractionator [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 20.00% | |||
Mont Belvieu Enterprise Fractionator [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 12.50% | |||
Southern Hills Pipeline [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 33.33% | |||
Texas Express [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Ownership interest percentage in subsidiary | 10.00% | |||
Panola [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 15.00% | |||
NGL Logistics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | $ 21 | 18 | ||
Gross margin | 21 | 18 | ||
Other Cost and Expense, Operating | (5) | (4) | ||
Depreciation, Depletion and Amortization, Nonproduction | (2) | (2) | ||
General and Administrative Expense | 0 | 0 | ||
Earnings from unconsolidated affiliates | 34 | 25 | ||
Interest expense | 0 | 0 | ||
Income tax expense | 0 | |||
Net income | 48 | 37 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net Income (Loss) Attributable to Parent | 48 | 37 | ||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | 0 | 0 | ||
Capital expenditures | 0 | 13 | ||
Investments in unconsolidated affiliates, net | 8 | 13 | ||
Wholesale Propane Logistics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 53 | 110 | ||
Gross margin | 16 | 29 | ||
Other Cost and Expense, Operating | (3) | (3) | ||
Depreciation, Depletion and Amortization, Nonproduction | (1) | (1) | ||
General and Administrative Expense | 0 | 0 | ||
Earnings from unconsolidated affiliates | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Income tax expense | 0 | |||
Net income | 12 | 25 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net Income (Loss) Attributable to Parent | 12 | 25 | ||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | 0 | 3 | ||
Capital expenditures | 1 | 2 | ||
Investments in unconsolidated affiliates, net | 0 | 0 | ||
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 0 | 0 | ||
Gross margin | 0 | 0 | [1] | |
Other Cost and Expense, Operating | 0 | 0 | ||
Depreciation, Depletion and Amortization, Nonproduction | 0 | 0 | ||
General and Administrative Expense | (21) | (21) | ||
Earnings from unconsolidated affiliates | 0 | 0 | ||
Interest expense | (24) | (22) | ||
Income tax expense | (1) | |||
Net income | (45) | (44) | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net Income (Loss) Attributable to Parent | (45) | (44) | ||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | 0 | (1) | ||
Capital expenditures | 0 | 0 | ||
Investments in unconsolidated affiliates, net | $ 0 | $ 0 | ||
Front Range Pipeline [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 33.33% | |||
[1] | Gross margin consists of total operating revenues, including commodity derivative activity, less purchases of natural gas, propane and NGLs. Gross margin is viewed as a non-GAAP measure under the rules of the SEC, but is included as a supplemental disclosure because it is a primary performance measure used by management as it represents the results of product sales versus product purchases. As an indicator of our operating performance, gross margin should not be considered an alternative to, or more meaningful than, net income or cash flow as determined in accordance with GAAP. Our gross margin may not be comparable to a similarly titled measure of another company because other entities may not calculate gross margin in the same manner. |
Business Segments - Segment Inf
Business Segments - Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | $ 379 | $ 568 | ||
Gross margin | 148 | 166 | [1] | |
Operating and maintenance expense | (48) | (47) | ||
Depreciation and amortization expense | (32) | (29) | ||
General and administrative expense | (21) | (21) | ||
Earnings from unconsolidated affiliates | 49 | 23 | ||
Interest expense | (24) | (22) | ||
Income tax expense | 0 | (1) | ||
Net income | 72 | 69 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to partners | 72 | 69 | ||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | (45) | (43) | ||
Non-cash lower of cost or market adjustments | 3 | 4 | ||
Capital expenditures | 10 | 65 | ||
Investments in unconsolidated affiliates, net | 8 | 25 | ||
Total long-term assets | 5,131 | $ 5,171 | ||
Current assets | 223 | 306 | ||
Total assets | 5,354 | 5,477 | ||
Natural Gas Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 305 | 440 | ||
Gross margin | 111 | 119 | ||
Operating and maintenance expense | (40) | (40) | ||
Depreciation and amortization expense | (29) | (26) | ||
General and administrative expense | 0 | 0 | ||
Earnings from unconsolidated affiliates | 15 | (2) | ||
Interest expense | 0 | 0 | ||
Income tax expense | 0 | |||
Net income | 57 | 51 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to partners | 57 | 51 | ||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | (45) | (45) | ||
Non-cash lower of cost or market adjustments | 3 | 3 | ||
Capital expenditures | 9 | 50 | ||
Investments in unconsolidated affiliates, net | 0 | 12 | ||
Total long-term assets | 4,325 | 4,362 | ||
NGL Logistics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 21 | 18 | ||
Gross margin | 21 | 18 | ||
Operating and maintenance expense | (5) | (4) | ||
Depreciation and amortization expense | (2) | (2) | ||
General and administrative expense | 0 | 0 | ||
Earnings from unconsolidated affiliates | 34 | 25 | ||
Interest expense | 0 | 0 | ||
Income tax expense | 0 | |||
Net income | 48 | 37 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to partners | 48 | 37 | ||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | 0 | 0 | ||
Non-cash lower of cost or market adjustments | 0 | 0 | ||
Capital expenditures | 0 | 13 | ||
Investments in unconsolidated affiliates, net | 8 | 13 | ||
Total long-term assets | 679 | 679 | ||
Wholesale Propane Logistics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 53 | 110 | ||
Gross margin | 16 | 29 | ||
Operating and maintenance expense | (3) | (3) | ||
Depreciation and amortization expense | (1) | (1) | ||
General and administrative expense | 0 | 0 | ||
Earnings from unconsolidated affiliates | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Income tax expense | 0 | |||
Net income | 12 | 25 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to partners | 12 | 25 | ||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | 0 | 3 | ||
Non-cash lower of cost or market adjustments | 0 | 1 | ||
Capital expenditures | 1 | 2 | ||
Investments in unconsolidated affiliates, net | 0 | 0 | ||
Total long-term assets | 119 | 120 | ||
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 0 | 0 | ||
Gross margin | 0 | 0 | [1] | |
Operating and maintenance expense | 0 | 0 | ||
Depreciation and amortization expense | 0 | 0 | ||
General and administrative expense | (21) | (21) | ||
Earnings from unconsolidated affiliates | 0 | 0 | ||
Interest expense | (24) | (22) | ||
Income tax expense | (1) | |||
Net income | (45) | (44) | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to partners | (45) | (44) | ||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | 0 | (1) | ||
Non-cash lower of cost or market adjustments | 0 | 0 | ||
Capital expenditures | 0 | 0 | ||
Investments in unconsolidated affiliates, net | 0 | $ 0 | ||
Total long-term assets | $ 8 | $ 10 | ||
[1] | Gross margin consists of total operating revenues, including commodity derivative activity, less purchases of natural gas, propane and NGLs. Gross margin is viewed as a non-GAAP measure under the rules of the SEC, but is included as a supplemental disclosure because it is a primary performance measure used by management as it represents the results of product sales versus product purchases. As an indicator of our operating performance, gross margin should not be considered an alternative to, or more meaningful than, net income or cash flow as determined in accordance with GAAP. Our gross margin may not be comparable to a similarly titled measure of another company because other entities may not calculate gross margin in the same manner. |
Business Segments - Segment I79
Business Segments - Segment Information (Parenthetical) (Detail) - Project | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Number of owned and operated rail terminals | 6 | |
Number of owned marine import terminals | 1 | |
Marine Terminals | 1 | |
Pipeline Terminals | 1 |
Supplemental Cash Flow Inform80
Supplemental Cash Flow Information - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest, net of amounts capitalized | $ 11 | $ 8 |
Property, plant and equipment acquired with accounts payable | $ 2 | $ 32 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Total operating revenues | $ 379 | $ 568 |
Operating Income (Loss) | 47 | 69 |
Net income | 72 | 69 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net Income (Loss) Attributable to Parent | 72 | 69 |
Net Income (Loss) Allocated to Limited Partners | $ 41 | $ 38 |
Net Income (Loss), Per Outstanding Limited Partnership and General Partnership Unit, Basic and Diluted, Net of Tax | $ 0.36 | $ 0.33 |
Supplementary Information - C82
Supplementary Information - Condensed Consolidating Financial Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016 | |
Parent Guarantor [Member] | |
Parent Company Only Financial Information [Line Items] | |
Ownership interest percentage in subsidiary | 100.00% |
Supplementary Information - C83
Supplementary Information - Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 1 | $ 2 | $ 33 | $ 25 |
Accounts receivable, net | 136 | 154 | ||
Inventories | 37 | 43 | ||
Other | 49 | 107 | ||
Total current assets | 223 | 306 | ||
Property, plant and equipment, net | 3,446 | 3,476 | ||
Goodwill and intangible assets, net | 182 | 184 | ||
Advances receivable - consolidated subsidiaries | 0 | 0 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Investments in unconsolidated affiliates | 1,486 | 1,493 | ||
Other long-term assets | 17 | 18 | ||
Total assets | 5,354 | 5,477 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable and other current liabilities | 175 | 200 | ||
Advances payable - consolidated subsidiaries | 0 | 0 | ||
Long-term debt | 2,377 | 2,424 | ||
Other long-term liabilities | 48 | 48 | ||
Total liabilities | $ 2,600 | $ 2,672 | ||
Commitments and contingent liabilities | ||||
Equity: | ||||
Net equity | $ 2,731 | $ 2,780 | ||
Accumulated other comprehensive loss | (8) | (8) | ||
Total partners' equity | 2,723 | 2,772 | ||
Noncontrolling interests | 31 | 33 | ||
Total equity | 2,754 | 2,805 | 3,006 | 3,026 |
Total liabilities and equity | 5,354 | 5,477 | ||
Parent Guarantor [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill and intangible assets, net | 0 | 0 | ||
Advances receivable - consolidated subsidiaries | 2,038 | 2,159 | ||
Investments in consolidated subsidiaries | 685 | 613 | ||
Investments in unconsolidated affiliates | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 2,723 | 2,772 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable and other current liabilities | 0 | 0 | ||
Advances payable - consolidated subsidiaries | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | $ 0 | $ 0 | ||
Commitments and contingent liabilities | ||||
Equity: | ||||
Net equity | $ 2,723 | $ 2,772 | ||
Accumulated other comprehensive loss | 0 | 0 | ||
Total partners' equity | 2,723 | 2,772 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 2,723 | 2,772 | ||
Total liabilities and equity | 2,723 | 2,772 | ||
Subsidiary Issuer [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 32 | 24 |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill and intangible assets, net | 0 | 0 | ||
Advances receivable - consolidated subsidiaries | 1,963 | 2,023 | ||
Investments in consolidated subsidiaries | 1,129 | 1,033 | ||
Investments in unconsolidated affiliates | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 3,092 | 3,056 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable and other current liabilities | 30 | 19 | ||
Advances payable - consolidated subsidiaries | 0 | 0 | ||
Long-term debt | 2,377 | 2,424 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | $ 2,407 | $ 2,443 | ||
Commitments and contingent liabilities | ||||
Equity: | ||||
Net equity | $ 688 | $ 616 | ||
Accumulated other comprehensive loss | (3) | (3) | ||
Total partners' equity | 685 | 613 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 685 | 613 | ||
Total liabilities and equity | 3,092 | 3,056 | ||
Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 1 | 2 | 1 | 1 |
Accounts receivable, net | 136 | 154 | ||
Inventories | 37 | 43 | ||
Other | 49 | 107 | ||
Total current assets | 223 | 306 | ||
Property, plant and equipment, net | 3,446 | 3,476 | ||
Goodwill and intangible assets, net | 182 | 184 | ||
Advances receivable - consolidated subsidiaries | 0 | 0 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Investments in unconsolidated affiliates | 1,486 | 1,493 | ||
Other long-term assets | 17 | 18 | ||
Total assets | 5,354 | 5,477 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable and other current liabilities | 145 | 181 | ||
Advances payable - consolidated subsidiaries | 4,001 | 4,182 | ||
Long-term debt | 0 | 0 | ||
Other long-term liabilities | 48 | 48 | ||
Total liabilities | $ 4,194 | $ 4,411 | ||
Commitments and contingent liabilities | ||||
Equity: | ||||
Net equity | $ 1,134 | $ 1,038 | ||
Accumulated other comprehensive loss | (5) | (5) | ||
Total partners' equity | 1,129 | 1,033 | ||
Noncontrolling interests | 31 | 33 | ||
Total equity | 1,160 | 1,066 | ||
Total liabilities and equity | 5,354 | 5,477 | ||
Consolidating Adjustments [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill and intangible assets, net | 0 | 0 | ||
Advances receivable - consolidated subsidiaries | (4,001) | (4,182) | ||
Investments in consolidated subsidiaries | (1,814) | (1,646) | ||
Investments in unconsolidated affiliates | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | (5,815) | (5,828) | ||
LIABILITIES AND EQUITY | ||||
Accounts payable and other current liabilities | 0 | 0 | ||
Advances payable - consolidated subsidiaries | (4,001) | (4,182) | ||
Long-term debt | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | $ (4,001) | $ (4,182) | ||
Commitments and contingent liabilities | ||||
Equity: | ||||
Net equity | $ (1,814) | $ (1,646) | ||
Accumulated other comprehensive loss | 0 | 0 | ||
Total partners' equity | (1,814) | (1,646) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (1,814) | (1,646) | ||
Total liabilities and equity | $ (5,815) | $ (5,828) |
Supplementary Information - C84
Supplementary Information - Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Sales of natural gas, propane, NGLs and condensate | $ 267 | $ 470 |
Transportation, processing and other | 103 | 79 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 9 | 19 |
Total operating revenues | 379 | 568 |
Purchases of natural gas, propane and NGLs | 231 | 402 |
Operating and maintenance expense | 48 | 47 |
Depreciation and amortization expense | 32 | 29 |
General and administrative expense | 21 | 21 |
Total operating costs and expenses | 332 | 499 |
Operating Income (Loss) | 47 | 69 |
Interest expense | (24) | (22) |
Income from consolidated subsidiaries | 0 | 0 |
Earnings from unconsolidated affiliates | 49 | 23 |
Income before income taxes | 72 | 70 |
Income tax expense | 0 | (1) |
Net income | 72 | 69 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to partners | 72 | 69 |
Parent Guarantor [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales of natural gas, propane, NGLs and condensate | 0 | 0 |
Transportation, processing and other | 0 | 0 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 0 | 0 |
Total operating revenues | 0 | 0 |
Purchases of natural gas, propane and NGLs | 0 | 0 |
Operating and maintenance expense | 0 | 0 |
Depreciation and amortization expense | 0 | 0 |
General and administrative expense | 0 | 0 |
Total operating costs and expenses | 0 | 0 |
Operating Income (Loss) | 0 | 0 |
Interest expense | 0 | 0 |
Income from consolidated subsidiaries | 72 | 69 |
Earnings from unconsolidated affiliates | 0 | 0 |
Income before income taxes | 72 | 69 |
Income tax expense | 0 | 0 |
Net income | 72 | 69 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to partners | 72 | 69 |
Subsidiary Issuer [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales of natural gas, propane, NGLs and condensate | 0 | 0 |
Transportation, processing and other | 0 | 0 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 0 | 0 |
Total operating revenues | 0 | 0 |
Purchases of natural gas, propane and NGLs | 0 | 0 |
Operating and maintenance expense | 0 | 0 |
Depreciation and amortization expense | 0 | 0 |
General and administrative expense | 0 | 0 |
Total operating costs and expenses | 0 | 0 |
Operating Income (Loss) | 0 | 0 |
Interest expense | (24) | (22) |
Income from consolidated subsidiaries | 96 | 91 |
Earnings from unconsolidated affiliates | 0 | 0 |
Income before income taxes | 72 | 69 |
Income tax expense | 0 | 0 |
Net income | 72 | 69 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to partners | 72 | 69 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales of natural gas, propane, NGLs and condensate | 267 | 470 |
Transportation, processing and other | 103 | 79 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 9 | 19 |
Total operating revenues | 379 | 568 |
Purchases of natural gas, propane and NGLs | 231 | 402 |
Operating and maintenance expense | 48 | 47 |
Depreciation and amortization expense | 32 | 29 |
General and administrative expense | 21 | 21 |
Total operating costs and expenses | 332 | 499 |
Operating Income (Loss) | 47 | 69 |
Interest expense | 0 | 0 |
Income from consolidated subsidiaries | 0 | 0 |
Earnings from unconsolidated affiliates | 49 | 23 |
Income before income taxes | 96 | 92 |
Income tax expense | 0 | (1) |
Net income | 96 | 91 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to partners | 96 | 91 |
Consolidating Adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales of natural gas, propane, NGLs and condensate | 0 | 0 |
Transportation, processing and other | 0 | 0 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 0 | 0 |
Total operating revenues | 0 | 0 |
Purchases of natural gas, propane and NGLs | 0 | 0 |
Operating and maintenance expense | 0 | 0 |
Depreciation and amortization expense | 0 | 0 |
General and administrative expense | 0 | 0 |
Total operating costs and expenses | 0 | 0 |
Operating Income (Loss) | 0 | 0 |
Interest expense | 0 | 0 |
Income from consolidated subsidiaries | (168) | (160) |
Earnings from unconsolidated affiliates | 0 | 0 |
Income before income taxes | (168) | (160) |
Income tax expense | 0 | 0 |
Net income | (168) | (160) |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to partners | $ (168) | $ (160) |
Supplementary Information - C85
Supplementary Information - Condensed Consolidating Financial Information - Condensed Consolidating Statement of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net income | $ 72 | $ 69 |
Other comprehensive income (loss): | ||
Reclassification of cash flow hedge losses into earnings | 0 | 1 |
Other comprehensive income from consolidated subsidiaries | 0 | 0 |
Total other comprehensive income | 0 | 1 |
Total comprehensive income | 72 | 70 |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Total comprehensive income attributable to partners | 72 | 70 |
Parent Guarantor [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 72 | 69 |
Other comprehensive income (loss): | ||
Reclassification of cash flow hedge losses into earnings | 0 | 0 |
Other comprehensive income from consolidated subsidiaries | 0 | 1 |
Total other comprehensive income | 0 | 1 |
Total comprehensive income | 72 | 70 |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Total comprehensive income attributable to partners | 72 | 70 |
Subsidiary Issuer [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 72 | 69 |
Other comprehensive income (loss): | ||
Reclassification of cash flow hedge losses into earnings | 0 | 1 |
Other comprehensive income from consolidated subsidiaries | 0 | 0 |
Total other comprehensive income | 0 | 1 |
Total comprehensive income | 72 | 70 |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Total comprehensive income attributable to partners | 72 | 70 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 96 | 91 |
Other comprehensive income (loss): | ||
Reclassification of cash flow hedge losses into earnings | 0 | 0 |
Other comprehensive income from consolidated subsidiaries | 0 | 0 |
Total other comprehensive income | 0 | 0 |
Total comprehensive income | 96 | 91 |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Total comprehensive income attributable to partners | 96 | 91 |
Consolidating Adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | (168) | (160) |
Other comprehensive income (loss): | ||
Reclassification of cash flow hedge losses into earnings | 0 | 0 |
Other comprehensive income from consolidated subsidiaries | 0 | (1) |
Total other comprehensive income | 0 | (1) |
Total comprehensive income | (168) | (161) |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Total comprehensive income attributable to partners | $ (168) | $ (161) |
Supplementary Information - C86
Supplementary Information - Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities | $ 188 | $ 188 |
Payments for (Proceeds from) Other Investing Activities | 0 | 0 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (10) | (65) |
Investments in unconsolidated affiliates, net | 8 | 25 |
Net cash used in investing activities | (18) | (90) |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 |
FINANCING ACTIVITIES: | ||
Proceeds from long-term debt | 394 | 162 |
Repayments of Long-term Debt | 442 | (162) |
Proceeds from issuance of common units, net of offering cost | 0 | 31 |
Payments of Ordinary Dividends | (121) | (120) |
Distributions to noncontrolling interests | (2) | (1) |
Payments of Capital Distribution | (121) | (120) |
Net cash used in financing activities | (171) | (90) |
Net change in cash and cash equivalents | (1) | 8 |
Cash and cash equivalents, beginning of period | 2 | 25 |
Cash and cash equivalents, end of period | 1 | 33 |
Parent Guarantor [Member] | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities | 0 | 0 |
Payments for (Proceeds from) Other Investing Activities | 121 | 89 |
INVESTING ACTIVITIES: | ||
Capital expenditures | 0 | 0 |
Investments in unconsolidated affiliates, net | 0 | 0 |
Net cash used in investing activities | 121 | 89 |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 |
FINANCING ACTIVITIES: | ||
Proceeds from long-term debt | 0 | 0 |
Repayments of Long-term Debt | 0 | 0 |
Proceeds from issuance of common units, net of offering cost | 31 | |
Payments of Ordinary Dividends | (121) | (120) |
Distributions to noncontrolling interests | 0 | 0 |
Net cash used in financing activities | (121) | (89) |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Subsidiary Issuer [Member] | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities | (11) | (8) |
Payments for (Proceeds from) Other Investing Activities | 59 | 16 |
INVESTING ACTIVITIES: | ||
Capital expenditures | 0 | 0 |
Investments in unconsolidated affiliates, net | 0 | 0 |
Net cash used in investing activities | 59 | 16 |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 |
FINANCING ACTIVITIES: | ||
Proceeds from long-term debt | 394 | 162 |
Repayments of Long-term Debt | 442 | (162) |
Proceeds from issuance of common units, net of offering cost | 0 | |
Payments of Ordinary Dividends | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Net cash used in financing activities | (48) | 0 |
Net change in cash and cash equivalents | 0 | 8 |
Cash and cash equivalents, beginning of period | 0 | 24 |
Cash and cash equivalents, end of period | 0 | 32 |
Non-Guarantor Subsidiaries [Member] | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities | 199 | 196 |
Payments for (Proceeds from) Other Investing Activities | 0 | 0 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (10) | (65) |
Investments in unconsolidated affiliates, net | 8 | 25 |
Net cash used in investing activities | (18) | (90) |
Proceeds from (Payments for) Other Financing Activities | (180) | (105) |
FINANCING ACTIVITIES: | ||
Proceeds from long-term debt | 0 | 0 |
Repayments of Long-term Debt | 0 | 0 |
Proceeds from issuance of common units, net of offering cost | 0 | |
Payments of Ordinary Dividends | 0 | 0 |
Distributions to noncontrolling interests | (2) | (1) |
Net cash used in financing activities | (182) | (106) |
Net change in cash and cash equivalents | (1) | 0 |
Cash and cash equivalents, beginning of period | 2 | 1 |
Cash and cash equivalents, end of period | 1 | 1 |
Consolidating Adjustments [Member] | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities | 0 | 0 |
Payments for (Proceeds from) Other Investing Activities | (180) | (105) |
INVESTING ACTIVITIES: | ||
Capital expenditures | 0 | 0 |
Investments in unconsolidated affiliates, net | 0 | 0 |
Net cash used in investing activities | (180) | (105) |
Proceeds from (Payments for) Other Financing Activities | 180 | 105 |
FINANCING ACTIVITIES: | ||
Proceeds from long-term debt | 0 | 0 |
Repayments of Long-term Debt | 0 | 0 |
Proceeds from issuance of common units, net of offering cost | 0 | |
Payments of Ordinary Dividends | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Net cash used in financing activities | 180 | 105 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Jun. 30, 2016 | May. 13, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Subsequent Event [Line Items] | ||||
Common unitholders, units issued | 114,742,948 | 114,740,148 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Distribution of dividend | $ 0.78 | |||
Distribution payable date | May 13, 2016 | |||
Distribution record date | May 9, 2016 | |||
Equity Distribution Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Offer value of common stock remaining available for sale | $ 349 |