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 wholly 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 September 30, 2019 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 2 $ — $ 2 Accounts receivable, net — — 834 — 834 Inventories — — 55 — 55 Other — — 168 — 168 Total current assets — — 1,059 — 1,059 Property, plant and equipment, net — — 8,871 — 8,871 Goodwill and intangible assets, net — — 222 — 222 Advances receivable — consolidated subsidiaries 1,955 2,123 — (4,078) — Investments in consolidated subsidiaries 4,834 8,344 — (13,178) — Investments in unconsolidated affiliates — — 3,611 — 3,611 Other long-term assets — — 271 — 271 Total assets $ 6,789 $ 10,467 $ 14,034 $ (17,256) $ 14,034 LIABILITIES AND EQUITY Accounts payable and other current liabilities $ 2 $ 73 $ 1,016 $ — $ 1,091 Current maturities of long-term debt — 600 1 — 601 Advances payable — consolidated subsidiaries — — 4,078 (4,078) — Long-term debt — 4,960 205 — 5,165 Other long-term liabilities — — 362 — 362 Total liabilities 2 5,633 5,662 (4,078) 7,219 Commitments and contingent liabilities Equity: Partners’ equity: Net equity 6,787 4,837 8,349 (13,178) 6,795 Accumulated other comprehensive loss — (3) (5) — (8) Total partners’ equity 6,787 4,834 8,344 (13,178) 6,787 Noncontrolling interests — — 28 — 28 Total equity 6,787 4,834 8,372 (13,178) 6,815 Total liabilities and equity $ 6,789 $ 10,467 $ 14,034 $ (17,256) $ 14,034 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 September 30, 2019 Parent Subsidiary Non- Consolidating Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 1,599 $ — $ 1,599 Transportation, processing and other — — 101 — 101 Trading and marketing losses, net — — (1) — (1) Total operating revenues — — 1,699 — 1,699 Operating costs and expenses: Purchases and related costs — — 1,308 — 1,308 Operating and maintenance expense — — 187 — 187 Depreciation and amortization expense — — 100 — 100 General and administrative expense — — 66 — 66 Asset impairments — — 247 — 247 Restructuring costs — — 2 — 2 Total operating costs and expenses — — 1,910 — 1,910 Operating loss — — (211) — (211) Interest expense, net — (77) (2) — (79) Loss from consolidated subsidiaries (178) (101) — 279 — Earnings from unconsolidated affiliates — — 114 — 114 Loss before income taxes (178) (178) (99) 279 (176) Income tax expense — — (1) — (1) Net loss (178) (178) (100) 279 (177) Net income attributable to noncontrolling interests — — (1) — (1) Net loss attributable to partners $ (178) $ (178) $ (101) $ 279 $ (178) Condensed Consolidating Statement of Comprehensive Income Three Months Ended September 30, 2019 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) Net loss $ (178) $ (178) $ (100) $ 279 $ (177) Other comprehensive income: Total other comprehensive income — — — — — Total comprehensive loss (178) (178) (100) 279 (177) Total comprehensive income attributable to noncontrolling interests — — (1) — (1) Total comprehensive loss attributable to partners $ (178) $ (178) $ (101) $ 279 $ (178) Condensed Consolidating Statement of Operations Three Months Ended September 30, 2018 Parent Subsidiary Non- Consolidating Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 2,682 $ — $ 2,682 Transportation, processing and other — — 133 — 133 Trading and marketing losses, net — — (56) — (56) Total operating revenues — — 2,759 — 2,759 Operating costs and expenses: Purchases and related costs — — 2,327 — 2,327 Operating and maintenance expense — — 196 — 196 Depreciation and amortization expense — — 98 — 98 General and administrative expense — — 70 — 70 Other expense, net — — 2 — 2 Total operating costs and expenses — — 2,693 — 2,693 Operating income — — 66 — 66 Loss from financing activities — (19) — — (19) Interest expense, net — (68) (1) — (69) Income from consolidated subsidiaries 81 168 — (249) — Earnings from unconsolidated affiliates — — 104 — 104 Income before income taxes 81 81 169 (249) 82 Income tax expense — — — — — Net income 81 81 169 (249) 82 Net income attributable to noncontrolling interests — — (1) — (1) Net income attributable to partners $ 81 $ 81 $ 168 $ (249) $ 81 Condensed Consolidating Statement of Comprehensive Income Three Months Ended September 30, 2018 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) Net income $ 81 $ 81 $ 169 $ (249) $ 82 Other comprehensive income: Total other comprehensive income — — — — — Total comprehensive income 81 81 169 (249) 82 Total comprehensive income attributable to noncontrolling interests — — (1) — (1) Total comprehensive income attributable to partners $ 81 $ 81 $ 168 $ (249) $ 81 Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2019 Parent Subsidiary Non- Consolidating Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 5,369 $ — $ 5,369 Transportation, processing and other — — 326 — 326 Trading and marketing gains, net — — 1 — 1 Total operating revenues — — 5,696 — 5,696 Operating costs and expenses: Purchases and related costs — — 4,468 — 4,468 Operating and maintenance expense — — 547 — 547 Depreciation and amortization expense — — 304 — 304 General and administrative expense — — 201 — 201 Asset impairments — — 247 — 247 Loss on sale of assets, net — — 14 — 14 Restructuring costs — — 11 — 11 Other expense, net — — 6 — 6 Total operating costs and expenses — — 5,798 — 5,798 Operating loss — — (102) — (102) Interest expense, net — (215) (6) — (221) Income from consolidated subsidiaries 16 231 — (247) — Earnings from unconsolidated affiliates — — 344 — 344 Income before income taxes 16 16 236 (247) 21 Income tax expense — — (2) — (2) Net income 16 16 234 (247) 19 Net income attributable to noncontrolling interests — — (3) — (3) Net income attributable to partners $ 16 $ 16 $ 231 $ (247) $ 16 Condensed Consolidating Statement of Comprehensive Income Nine Months Ended September 30, 2019 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) Net income $ 16 $ 16 $ 234 $ (247) $ 19 Other comprehensive income: Total other comprehensive income — — — — — Total comprehensive income 16 16 234 (247) 19 Total comprehensive income attributable to noncontrolling interests — — (3) — (3) Total comprehensive income attributable to partners $ 16 $ 16 $ 231 $ (247) $ 16 Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2018 Parent Subsidiary Non- Consolidating Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 7,008 $ — $ 7,008 Transportation, processing and other — — 371 — 371 Trading and marketing losses, net — — (164) — (164) Total operating revenues — — 7,215 — 7,215 Operating costs and expenses: Purchases and related costs — — 6,024 — 6,024 Operating and maintenance expense — — 543 — 543 Depreciation and amortization expense — — 289 — 289 General and administrative expense — — 199 — 199 Other expense, net — — 7 — 7 Total operating costs and expenses — — 7,062 — 7,062 Operating income — — 153 — 153 Loss from financing activities — (19) — — (19) Interest expense, net — (202) (1) — (203) Income from consolidated subsidiaries 204 425 — (629) — Earnings from unconsolidated affiliates — — 278 — 278 Income before income taxes 204 204 430 (629) 209 Income tax expense — — (2) — (2) Net income 204 204 428 (629) 207 Net income attributable to noncontrolling interests — — (3) — (3) Net income attributable to partners $ 204 $ 204 $ 425 $ (629) $ 204 Condensed Consolidating Statement of Comprehensive Income Nine Months Ended September 30, 2018 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) Net income $ 204 $ 204 $ 428 $ (629) $ 207 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 205 205 428 (630) 208 Total comprehensive income attributable to noncontrolling interests — — (3) — (3) Total comprehensive income attributable to partners $ 205 $ 205 $ 425 $ (630) $ 205 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2019 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (210) $ 847 $ — $ 637 INVESTING ACTIVITIES: Intercompany transfers 497 (240) — (257) — Capital expenditures — — (414) — (414) Investments in unconsolidated affiliates, net — — (326) — (326) Proceeds from sale of assets — — 155 — 155 Net cash provided by (used in) investing activities 497 (240) (585) (257) (585) FINANCING ACTIVITIES: Intercompany transfers — — (257) 257 — Proceeds from debt — 4,705 — — 4,705 Payments of debt — (4,246) — — (4,246) Distributions to preferred limited partners (34) — — — (34) Distributions to limited partners and general partner (463) — — — (463) Distributions to noncontrolling interests — — (4) — (4) Debt issuance costs — (9) — — (9) Net cash (used in) provided by financing activities (497) 450 (261) 257 (51) Net change in cash and cash equivalents — — 1 — 1 Cash and cash equivalents, beginning of period — — 1 — 1 Cash and cash equivalents, end of period $ — $ — $ 2 $ — $ 2 Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, 2018 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (201) $ 742 $ — $ 541 INVESTING ACTIVITIES: Intercompany transfers 373 (125) — (248) — Capital expenditures — — (428) — (428) Investments in unconsolidated affiliates, net — — (265) — (265) Proceeds from sale of assets — — 3 — 3 Net cash provided by (used in) investing activities 373 (125) (690) (248) (690) FINANCING ACTIVITIES: Intercompany transfers — — (248) 248 — Proceeds from debt — 3,420 200 — 3,620 Payments of debt — (3,225) — — (3,225) Costs incurred to redeem senior notes — (18) — — (18) Proceeds from issuance of preferred limited partner units, net of offering costs 155 — — — 155 Distributions to preferred limited partners (25) — — — (25) Distributions to limited partners and general partner (503) — — — (503) Distributions to noncontrolling interests — — (3) — (3) Other — (6) (1) — (7) Net cash (used in) provided by financing activities (373) 171 (52) 248 (6) 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 |