Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The following condensed consolidating financial information presents the results of operations, financial position and cash flows of DCP Midstream, 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, 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 Sheets December 31, 2018 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 1 $ — $ 1 Accounts receivable, net — — 1,033 — 1,033 Inventories — — 79 — 79 Other — — 158 — 158 Total current assets — — 1,271 — 1,271 Property, plant and equipment, net — — 9,135 — 9,135 Goodwill and intangible assets, net — — 328 — 328 Advances receivable — consolidated subsidiaries 2,452 1,883 — (4,335 ) — Investments in consolidated subsidiaries 4,818 8,113 — (12,931 ) — Investments in unconsolidated affiliates — — 3,340 — 3,340 Other long-term assets — — 192 — 192 Total assets $ 7,270 $ 9,996 $ 14,266 $ (17,266 ) $ 14,266 LIABILITIES AND EQUITY Accounts payable and other current liabilities $ 2 $ 71 $ 1,306 $ — $ 1,379 Current maturities of long-term debt — 325 200 — 525 Advances payable — consolidated subsidiaries — — 4,335 (4,335 ) — Long-term debt — 4,782 — — 4,782 Other long-term liabilities — — 283 — 283 Total liabilities 2 5,178 6,124 (4,335 ) 6,969 Commitments and contingent liabilities Equity: Partners’ equity: Net equity 7,268 4,821 8,118 (12,931 ) 7,276 Accumulated other comprehensive loss — (3 ) (5 ) — (8 ) Total partners’ equity 7,268 4,818 8,113 (12,931 ) 7,268 Noncontrolling interests — — 29 — 29 Total equity 7,268 4,818 8,142 (12,931 ) 7,297 Total liabilities and equity $ 7,270 $ 9,996 $ 14,266 $ (17,266 ) $ 14,266 Condensed Consolidating Balance Sheets December 31, 2017 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (millions) ASSETS Current assets: Cash and cash equivalents $ — $ 155 $ 1 $ — $ 156 Accounts receivable, net — — 981 — 981 Inventories — — 68 — 68 Other — — 117 — 117 Total current assets — 155 1,167 — 1,322 Property, plant and equipment, net — — 8,983 — 8,983 Goodwill and intangible assets, net — — 337 — 337 Advances receivable — consolidated subsidiaries 2,895 1,614 — (4,509 ) — Investments in consolidated subsidiaries 4,513 7,522 — (12,035 ) — Investments in unconsolidated affiliates — — 3,050 — 3,050 Other long-term assets — — 186 — 186 Total assets $ 7,408 $ 9,291 $ 13,723 $ (16,544 ) $ 13,878 LIABILITIES AND EQUITY Accounts payable and other current liabilities $ — $ 71 $ 1,417 $ — $ 1,488 Advances payable — consolidated subsidiaries — — 4,509 (4,509 ) — Long-term debt — 4,707 — — 4,707 Other long-term liabilities — — 245 — 245 Total liabilities — 4,778 6,171 (4,509 ) 6,440 Commitments and contingent liabilities Equity: Partners’ equity: Net equity 7,408 4,517 7,527 (12,035 ) 7,417 Accumulated other comprehensive loss — (4 ) (5 ) — (9 ) Total partners’ equity 7,408 4,513 7,522 (12,035 ) 7,408 Noncontrolling interests — — 30 — 30 Total equity 7,408 4,513 7,552 (12,035 ) 7,438 Total liabilities and equity $ 7,408 $ 9,291 $ 13,723 $ (16,544 ) $ 13,878 Condensed Consolidating Statement of Operations Year Ended December 31, 2018 Parent Guarantor Subsidiary Issuer Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 9,374 $ — $ 9,374 Transportation, processing and other — — 489 — 489 Trading and marketing losses, net — — (41 ) — (41 ) Total operating revenues — — 9,822 — 9,822 Operating costs and expenses: Purchases and related costs — — 8,019 — 8,019 Operating and maintenance expense — — 760 — 760 Depreciation and amortization expense — — 388 — 388 General and administrative expense — — 276 — 276 Asset impairments — — 145 — 145 Other expense, net — — 11 — 11 Total operating costs and expenses — — 9,599 — 9,599 Operating income — — 223 — 223 Loss from financing activities — (19 ) — — (19 ) Interest expense, net — (268 ) (1 ) — (269 ) Income from consolidated subsidiaries 298 585 — (883 ) — Earnings from unconsolidated affiliates — — 370 — 370 Income before income taxes 298 298 592 (883 ) 305 Income tax expense — — (3 ) — (3 ) Net income 298 298 589 (883 ) 302 Net income attributable to noncontrolling interests — — (4 ) — (4 ) Net income attributable to partners $ 298 $ 298 $ 585 $ (883 ) $ 298 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2018 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (millions) Net income $ 298 $ 298 $ 589 $ (883 ) $ 302 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 299 299 589 (884 ) 303 Total comprehensive income attributable to noncontrolling interests — — (4 ) — (4 ) Total comprehensive income attributable to partners $ 299 $ 299 $ 585 $ (884 ) $ 299 Condensed Consolidating Statement of Operations Year Ended December 31, 2017 Parent Guarantor Subsidiary Issuer Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 7,850 $ — $ 7,850 Transportation, processing and other — — 652 — 652 Trading and marketing losses, net — — (40 ) — (40 ) Total operating revenues — — 8,462 — 8,462 Operating costs and expenses: Purchases and related costs — — 6,885 — 6,885 Operating and maintenance expense — — 661 — 661 Depreciation and amortization expense — — 379 — 379 General and administrative expense — — 290 — 290 Asset impairments — — 48 — 48 Gain on sale of assets, net — — (34 ) — (34 ) Other expense, net — — 11 — 11 Total operating costs and expenses — — 8,240 — 8,240 Operating income — — 222 — 222 Interest expense, net — (289 ) — — (289 ) Income from consolidated subsidiaries 229 518 — (747 ) — Earnings from unconsolidated affiliates — — 303 — 303 Income before income taxes 229 229 525 (747 ) 236 Income tax expense — — (2 ) — (2 ) Net income 229 229 523 (747 ) 234 Net income attributable to noncontrolling interests — — (5 ) — (5 ) Net income attributable to partners $ 229 $ 229 $ 518 $ (747 ) $ 229 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2017 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (millions) Net income $ 229 $ 229 $ 523 $ (747 ) $ 234 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 230 230 523 (748 ) 235 Total comprehensive income attributable to noncontrolling interests — — (5 ) — (5 ) Total comprehensive income attributable to partners $ 230 $ 230 $ 518 $ (748 ) $ 230 Condensed Consolidating Statement of Operations Year Ended December 31, 2016 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 6,269 $ — $ 6,269 Transportation, processing and other — — 647 — 647 Trading and marketing losses, net — — (23 ) — (23 ) Total operating revenues — — 6,893 — 6,893 Operating costs and expenses: Purchases and related costs — — 5,461 — 5,461 Operating and maintenance expense — — 670 — 670 Depreciation and amortization expense — — 378 — 378 General and administrative expense — — 292 — 292 Gain on sale of assets, net — — (35 ) — (35 ) Restructuring costs — — 13 — 13 Other income, net — — (65 ) — (65 ) Total operating costs and expenses — — 6,714 — 6,714 Operating income — — 179 — 179 Interest expense, net — (321 ) — — (321 ) Income from consolidated subsidiaries 88 409 — (497 ) — Earnings from unconsolidated affiliates — — 282 — 282 Income before income taxes 88 88 461 (497 ) 140 Income tax expense — — (46 ) — (46 ) Net income 88 88 415 (497 ) 94 Net income attributable to noncontrolling interests — — (6 ) — (6 ) Net income attributable to partners $ 88 $ 88 $ 409 $ (497 ) $ 88 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2016 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (millions) Net income $ 88 $ 88 $ 415 $ (497 ) $ 94 Other comprehensive income: Total other comprehensive income — — — — — Total comprehensive income 88 88 415 (497 ) 94 Total comprehensive income attributable to noncontrolling interests — — (6 ) — (6 ) Total comprehensive income attributable to partners $ 88 $ 88 $ 409 $ (497 ) $ 88 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2018 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (263 ) $ 925 $ — $ 662 INVESTING ACTIVITIES: Intercompany transfers 443 (269 ) — (174 ) — Capital expenditures — — (595 ) — (595 ) Investments in unconsolidated affiliates, net — — (354 ) — (354 ) Proceeds from sale of assets — — 4 — 4 Net cash provided by (used in) investing activities 443 (269 ) (945 ) (174 ) (945 ) FINANCING ACTIVITIES: Intercompany transfers — — (174 ) 174 — Proceeds from debt — 4,961 200 — 5,161 Payments of debt — (4,560 ) — — (4,560 ) Costs incurred to redeem senior notes — (18 ) — — (18 ) Proceeds from issuance of preferred limited partner units, net of offering costs 261 — — — 261 Distributions to preferred limited partners (46 ) — — — (46 ) Distributions to limited partners and general partner (658 ) — — — (658 ) Distributions to noncontrolling interests — — (5 ) — (5 ) Other — (6 ) (1 ) — (7 ) Net cash (used in) provided by financing activities (443 ) 377 20 174 128 Net change in cash and cash equivalents — (155 ) — — (155 ) Cash and cash equivalents, beginning of period — 155 1 — 156 Cash and cash equivalents, end of period $ — $ — $ 1 $ — $ 1 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2017 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (283 ) $ 1,179 $ — $ 896 INVESTING ACTIVITIES: Intercompany transfers 58 1,141 — (1,199 ) — Capital expenditures — — (375 ) — (375 ) Investments in unconsolidated affiliates, net — — (148 ) — (148 ) Proceeds from sale of assets — — 132 — 132 Net cash provided by (used in) investing activities 58 1,141 (391 ) (1,199 ) (391 ) FINANCING ACTIVITIES: Intercompany transfers — — (1,199 ) 1,199 — Proceeds from long-term debt — 116 — — 116 Payments of debt — (811 ) — — (811 ) Proceeds from issuance of preferred limited partner units, net of offering costs 487 — — — 487 Net change in advances to predecessor from DCP Midstream, LLC — — 418 — 418 Distributions to limited partners and general partner (545 ) — — — (545 ) Distributions to noncontrolling interests — — (7 ) — (7 ) Other — (8 ) — — (8 ) Net cash used in financing activities (58 ) (703 ) (788 ) 1,199 (350 ) Net change in cash and cash equivalents — 155 — — 155 Cash and cash equivalents, beginning of period — — 1 — 1 Cash and cash equivalents, end of period $ — $ 155 $ 1 $ — $ 156 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2016 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated (millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (305 ) $ 950 $ — $ 645 INVESTING ACTIVITIES: Intercompany transfers 483 585 — (1,068 ) — Capital expenditures — — (144 ) — (144 ) Investments in unconsolidated affiliates, net — — (53 ) — (53 ) Proceeds from sale of assets — — 163 — 163 Net cash (used in) provided by investing activities 483 585 (34 ) (1,068 ) (34 ) FINANCING ACTIVITIES: Intercompany transfers — — (1,068 ) 1,068 — Proceeds from long-term debt — 3,353 — — 3,353 Payments of long-term debt — (3,628 ) — — (3,628 ) Net change in advances to predecessor from DCP Midstream, LLC — — 157 — 157 Distributions to limited partners and general partner (483 ) — — — (483 ) Distributions to noncontrolling interests — — (7 ) — (7 ) Other — (5 ) — — (5 ) Net cash provided by (used in) financing activities (483 ) (280 ) (918 ) 1,068 (613 ) Net change in cash and cash equivalents — — (2 ) — (2 ) Cash and cash equivalents, beginning of year — — 3 — 3 Cash and cash equivalents, end of year $ — $ — $ 1 $ — $ 1 |