Condensed Consolidating Financial Information | Condensed Consolidating Financial InformationThe 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 June 30, 2019 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 1 $ — $ 1 Accounts receivable, net — — 660 — 660 Inventories — — 46 — 46 Other — — 116 — 116 Total current assets — — 823 — 823 Property, plant and equipment, net — — 9,108 — 9,108 Goodwill and intangible assets, net — — 259 — 259 Advances receivable — consolidated subsidiaries 2,115 1,997 — (4,112) — Investments in consolidated subsidiaries 5,012 8,445 — (13,457) — Investments in unconsolidated affiliates — — 3,581 — 3,581 Other long-term assets — — 262 — 262 Total assets $ 7,127 $ 10,442 $ 14,033 $ (17,569) $ 14,033 LIABILITIES AND EQUITY Accounts payable and other current liabilities $ 2 $ 80 $ 921 $ — $ 1,003 Current maturities of long-term debt — 600 200 — 800 Advances payable — consolidated subsidiaries — — 4,112 (4,112) — Long-term debt — 4,750 — — 4,750 Other long-term liabilities — — 327 — 327 Total liabilities 2 5,430 5,560 (4,112) 6,880 Commitments and contingent liabilities Equity: Partners’ equity: Net equity 7,125 5,015 8,450 (13,457) 7,133 Accumulated other comprehensive loss — (3) (5) — (8) Total partners’ equity 7,125 5,012 8,445 (13,457) 7,125 Noncontrolling interests — — 28 — 28 Total equity 7,125 5,012 8,473 (13,457) 7,153 Total liabilities and equity $ 7,127 $ 10,442 $ 14,033 $ (17,569) $ 14,033 Condensed Consolidating Balance Sheets December 31, 2018 Parent Subsidiary Non-Guarantor Consolidating 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 Statement of Operations Three Months Ended June 30, 2019 Parent Subsidiary Non- Consolidating Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 1,659 $ — $ 1,659 Transportation, processing and other — — 110 — 110 Trading and marketing gains, net — — 29 — 29 Total operating revenues — — 1,798 — 1,798 Operating costs and expenses: Purchases and related costs — — 1,356 — 1,356 Operating and maintenance expense — — 182 — 182 Depreciation and amortization expense — — 101 — 101 General and administrative expense — — 68 — 68 Loss on sale of assets, net — — 5 — 5 Restructuring costs — — 9 — 9 Other expense, net — — 1 — 1 Total operating costs and expenses — — 1,722 — 1,722 Operating income — — 76 — 76 Interest expense, net — (71) (2) — (73) Income from consolidated subsidiaries 119 190 — (309) — Earnings from unconsolidated affiliates — — 117 — 117 Income before income taxes 119 119 191 (309) 120 Income tax expense — — — — — Net income 119 119 191 (309) 120 Net income attributable to noncontrolling interests $ — $ — $ (1) $ — $ (1) Net income attributable to partners 119 119 190 (309) 119 Condensed Consolidating Statement of Comprehensive Income Three Months Ended June 30, 2019 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) Net income $ 119 $ 119 $ 191 $ (309) $ 120 Other comprehensive income: Total other comprehensive income — — — — — Total comprehensive income 119 119 191 (309) 120 Total comprehensive income attributable to noncontrolling interests — — (1) — (1) Total comprehensive income attributable to partners $ 119 $ 119 $ 190 $ (309) $ 119 Condensed Consolidating Statement of Operations Three Months Ended June 30, 2018 Parent Subsidiary Non- Consolidating Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 2,257 $ — $ 2,257 Transportation, processing and other — — 127 — 127 Trading and marketing losses, net — — (67) — (67) Total operating revenues — — 2,317 — 2,317 Operating costs and expenses: Purchases and related costs — — 1,928 — 1,928 Operating and maintenance expense — — 185 — 185 Depreciation and amortization expense — — 97 — 97 General and administrative expense — — 70 — 70 Other expense, net — — 3 — 3 Total operating costs and expenses — — 2,283 — 2,283 Operating income — — 34 — 34 Interest expense, net — (67) — — (67) Income from consolidated subsidiaries 61 128 — (189) — Earnings from unconsolidated affiliates — — 96 — 96 Income before income taxes 61 61 130 (189) 63 Income tax expense — — (1) — (1) Net income 61 61 129 (189) 62 Net income attributable to noncontrolling interests — — (1) — (1) Net income attributable to partners $ 61 $ 61 $ 128 $ (189) $ 61 Condensed Consolidating Statement of Comprehensive Income Three Months Ended June 30, 2018 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) Net income $ 61 $ 61 $ 129 $ (189) $ 62 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 62 62 129 (190) 63 Total comprehensive income attributable to noncontrolling interests — — (1) — (1) Total comprehensive income attributable to partners $ 62 $ 62 $ 128 $ (190) $ 62 Condensed Consolidating Statement of Operations Six Months Ended June 30, 2019 Parent Subsidiary Non- Consolidating Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 3,770 $ — $ 3,770 Transportation, processing and other — — 225 — 225 Trading and marketing gains, net — — 2 — 2 Total operating revenues — — 3,997 — 3,997 Operating costs and expenses: Purchases and related costs — — 3,160 — 3,160 Operating and maintenance expense — — 360 — 360 Depreciation and amortization expense — — 204 — 204 General and administrative expense — — 135 — 135 Loss on sale of assets, net — — 14 — 14 Restructuring costs — — 9 — 9 Other expense, net — — 6 — 6 Total operating costs and expenses — — 3,888 — 3,888 Operating income — — 109 — 109 Interest expense, net — (138) (4) — (142) Income from consolidated subsidiaries 194 332 — (526) — Earnings from unconsolidated affiliates — — 230 — 230 Income before income taxes 194 194 335 (526) 197 Income tax expense — — (1) — (1) Net income 194 194 334 (526) 196 Net income attributable to noncontrolling interests — — (2) — (2) Net income attributable to partners $ 194 $ 194 $ 332 $ (526) $ 194 Condensed Consolidating Statement of Comprehensive Income Six Months Ended June 30, 2019 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) Net income $ 194 $ 194 $ 334 $ (526) $ 196 Other comprehensive income: Total other comprehensive income — — — — — Total comprehensive income 194 194 334 (526) 196 Total comprehensive income attributable to noncontrolling interests — — (2) — (2) Total comprehensive income attributable to partners $ 194 $ 194 $ 332 $ (526) $ 194 Condensed Consolidating Statement of Operations Six Months Ended June 30, 2018 Parent Subsidiary Non- Consolidating Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 4,326 $ — $ 4,326 Transportation, processing and other — — 238 — 238 Trading and marketing losses, net — — (108) — (108) Total operating revenues — — 4,456 — 4,456 Operating costs and expenses: Purchases and related costs — — 3,697 — 3,697 Operating and maintenance expense — — 347 — 347 Depreciation and amortization expense — — 191 — 191 General and administrative expense — — 129 — 129 Other expense, net — — 5 — 5 Total operating costs and expenses — — 4,369 — 4,369 Operating income — — 87 — 87 Interest expense, net — (134) — — (134) Income from consolidated subsidiaries 123 257 — (380) — Earnings from unconsolidated affiliates — — 174 — 174 Income before income taxes 123 123 261 (380) 127 Income tax expense — — (2) — (2) Net income 123 123 259 (380) 125 Net income attributable to noncontrolling interests — — (2) — (2) Net income attributable to partners $ 123 $ 123 $ 257 $ (380) $ 123 Condensed Consolidating Statement of Comprehensive Income Six Months Ended June 30, 2018 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) Net income $ 123 $ 123 $ 259 $ (380) $ 125 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 124 124 259 (381) 126 Total comprehensive income attributable to noncontrolling interests — — (2) — (2) Total comprehensive income attributable to partners $ 124 $ 124 $ 257 $ (381) $ 124 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (126) $ 672 $ — $ 546 INVESTING ACTIVITIES: Intercompany transfers 337 (114) — (223) — Capital expenditures — — (308) — (308) Investments in unconsolidated affiliates, net — — (270) — (270) Proceeds from sale of assets — — 132 — 132 Net cash provided by (used in) investing activities 337 (114) (446) (223) (446) FINANCING ACTIVITIES: Intercompany transfers — — (223) 223 — Proceeds from debt — 3,457 — — 3,457 Payments of debt — (3,208) — — (3,208) Distributions to preferred limited partners (28) — — — (28) Distributions to limited partners and general partner (309) — — — (309) Distributions to noncontrolling interests — — (3) — (3) Debt issuance costs — (9) — — (9) Net cash (used in) provided by financing activities (337) 240 (226) 223 (100) Net change in cash and cash equivalents — — — — — Cash and cash equivalents, beginning of period — — 1 — 1 Cash and cash equivalents, end of period $ — $ — $ 1 $ — $ 1 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2018 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (131) $ 462 $ — $ 331 INVESTING ACTIVITIES: Intercompany transfers 215 (149) — (66) — Capital expenditures — — (268) — (268) Investments in unconsolidated affiliates, net — — (126) — (126) Proceeds from sale of assets — — 3 — 3 Net cash provided by (used in) investing activities 215 (149) (391) (66) (391) FINANCING ACTIVITIES: Intercompany transfers — — (66) 66 — Proceeds from debt — 1,803 — — 1,803 Payments of debt — (1,678) — — (1,678) Proceeds from issuance of preferred limited partner units, net of offering costs 155 — — — 155 Distributions to preferred limited partners (21) — — — (21) Distributions to limited partners and general partner (349) — — — (349) Distributions to noncontrolling interests — — (2) — (2) Net cash (used in) provided by financing activities (215) 125 (68) 66 (92) Net change in cash and cash equivalents — (155) 3 — (152) Cash and cash equivalents, beginning of period — 155 1 — 156 Cash and cash equivalents, end of period $ — $ — $ 4 $ — $ 4 |