Condensed Consolidating Financial Information | 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 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 December 31, 2019 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 1 $ — $ 1 Accounts receivable, net — — 878 — 878 Inventories — — 46 — 46 Other — — 155 — 155 Total current assets — — 1,080 — 1,080 Property, plant and equipment, net — — 8,811 — 8,811 Goodwill and intangible assets, net — — 220 — 220 Advances receivable — consolidated subsidiaries 1,772 2,042 — (3,814) — Investments in consolidated subsidiaries 4,836 8,423 — (13,259) — Investments in unconsolidated affiliates — — 3,724 — 3,724 Other long-term assets — — 292 — 292 Total assets $ 6,608 $ 10,465 $ 14,127 $ (17,073) $ 14,127 LIABILITIES AND EQUITY Accounts payable and other current liabilities $ 3 $ 80 $ 1,107 $ — $ 1,190 Current debt — 600 3 — 603 Advances payable — consolidated subsidiaries — — 3,814 (3,814) — Long-term debt — 4,949 372 — 5,321 Other long-term liabilities — — 380 — 380 Total liabilities 3 5,629 5,676 (3,814) 7,494 Commitments and contingent liabilities Equity: Partners’ equity: Net equity 6,605 4,838 8,428 (13,259) 6,612 Accumulated other comprehensive loss — (2) (5) — (7) Total partners’ equity 6,605 4,836 8,423 (13,259) 6,605 Noncontrolling interests — — 28 — 28 Total equity 6,605 4,836 8,451 (13,259) 6,633 Total liabilities and equity $ 6,608 $ 10,465 $ 14,127 $ (17,073) $ 14,127 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 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 Year Ended December 31, 2019 Parent Subsidiary Non- Consolidating Consolidated (millions) Operating revenues: Sales of natural gas, NGLs and condensate $ — $ — $ 7,199 $ — $ 7,199 Transportation, processing and other — — 439 — 439 Trading and marketing losses, net — — (13) — (13) Total operating revenues — — 7,625 — 7,625 Operating costs and expenses: Purchases and related costs — — 6,022 — 6,022 Operating and maintenance expense — — 728 — 728 Depreciation and amortization expense — — 404 — 404 General and administrative expense — — 275 — 275 Asset impairments — — 247 — 247 Other expense, net — — 8 — 8 Loss on sale of assets, net — — 80 — 80 Restructuring costs — — 11 — 11 Total operating costs and expenses — — 7,775 — 7,775 Operating loss — — (150) — (150) Interest expense, net — (293) (11) — (304) Income from consolidated subsidiaries 17 310 — (327) — Earnings from unconsolidated affiliates — — 474 — 474 Income before income taxes 17 17 313 (327) 20 Income tax expense — — 1 — 1 Net income 17 17 314 (327) 21 Net income attributable to noncontrolling interests — — (4) — (4) Net income attributable to partners $ 17 $ 17 $ 310 $ (327) $ 17 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2019 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) Net income $ 17 $ 17 $ 314 $ (327) $ 21 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 18 18 314 (328) 22 Total comprehensive income attributable to noncontrolling interests — — (4) — (4) Total comprehensive income attributable to partners $ 18 $ 18 $ 310 $ (328) $ 18 Condensed Consolidating Statement of Operations Year Ended December 31, 2018 Parent Subsidiary Non- Consolidating 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 Subsidiary Non-Guarantor Consolidating 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 Subsidiary Non- Consolidating 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 Subsidiary Non-Guarantor Consolidating 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 Cash Flows Year Ended December 31, 2019 Parent Subsidiary Non-Guarantor Consolidating Consolidated (millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ — $ (277) $ 1,136 $ — $ 859 INVESTING ACTIVITIES: Intercompany transfers 680 (159) — (521) — Capital expenditures — — (519) — (519) Investments in unconsolidated affiliates, net — — (450) — (450) Proceeds from sale of assets — — 209 — 209 Net cash provided by (used in) investing activities 680 (159) (760) (521) (760) FINANCING ACTIVITIES: Intercompany transfers — — (521) 521 — Proceeds from debt — 5,821 150 — 5,971 Payments of debt — (5,372) — — (5,372) Costs incurred related to conversion of GP economic interest and IDRs (3) — — — (3) Distributions to preferred limited partners (59) — — — (59) Distributions to limited partners and general partner (618) — — — (618) Distributions to noncontrolling interests — — (5) — (5) Debt issuance costs — (13) — — (13) Net cash (used in) provided by financing activities (680) 436 (376) 521 (99) 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 Year Ended December 31, 2018 Parent Subsidiary Non-Guarantor Consolidating 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 Subsidiary Non-Guarantor Consolidating 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 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 |