Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 08, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36336 | ||
Entity Registrant Name | ENLINK MIDSTREAM, LLC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-4108528 | ||
Entity Address, Address Line One | 1722 Routh St., | ||
Entity Address, Address Line Two | Suite 1300 | ||
Entity Address, City or Town | Dallas, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75201 | ||
City Area Code | 214 | ||
Local Phone Number | 953-9500 | ||
Title of 12(b) Security | Common Units Representing LimitedLiability Company Interests | ||
Trading Symbol | ENLC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.2 | ||
Entity Common Stock, Shares Outstanding | 470,636,443 | ||
Documents Incorporated by Reference | None. | ||
Document Fiscal Year Focus | 2022 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001592000 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Location | Dallas, TX |
Auditor Name | KPMG LLP |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 22.6 | $ 26.2 | |
Accounts receivable: | |||
Trade, net of allowance for bad debt of $0.1 and $0.3, respectively | 89.2 | 94.9 | |
Accrued revenue and other | 636 | 693.3 | |
Fair value of derivative assets | 68.4 | 22.4 | |
Other current assets | 166.6 | 83.6 | |
Total current assets | 982.8 | 920.4 | |
Property and equipment, net of accumulated depreciation of $4,774.5 and $4,332.0, respectively | 6,556 | 6,388.3 | |
Intangible assets, net of accumulated amortization of $923.6 and $795.1, respectively | 921.2 | 1,049.7 | |
Investment in unconsolidated affiliates | 90.2 | 28 | |
Fair value of derivative assets | 2.9 | 0.2 | |
Other assets, net | 97.9 | 96.6 | |
Total assets | 8,651 | 8,483.2 | |
Current liabilities: | |||
Accounts payable and drafts payable | 126.9 | 139.6 | |
Accrued gas, NGLs, condensate, and crude oil purchases | [1] | 476 | 521.5 |
Fair value of derivative liabilities | 42.9 | 34.9 | |
Other current liabilities | 229.6 | 202.9 | |
Total current liabilities | 875.4 | 898.9 | |
Long-term debt, net of unamortized issuance cost | 4,723.5 | 4,363.7 | |
Other long-term liabilities | 94 | 93.9 | |
Deferred tax liability, net | 42.7 | 137.5 | |
Fair value of derivative liabilities | 2.7 | 2.2 | |
Members’ equity: | |||
Members’ equity (468,980,630 and 484,277,258 units issued and outstanding, respectively) | 1,306.4 | 1,325.8 | |
Accumulated other comprehensive loss | 0 | (1.4) | |
Non-controlling interest | 1,606.3 | 1,662.6 | |
Total members’ equity | 2,912.7 | 2,987 | |
Commitments and contingencies (Note 15) | |||
Total liabilities and members’ equity | $ 8,651 | $ 8,483.2 | |
[1]Includes related party accounts payable balances of $2.5 million and $1.6 million at December 31, 2022 and December 31, 2021, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Trade, net of allowance for bad debt of $0.1 and $0.3, respectively | $ 0.1 | $ 0.3 |
Property and equipment, net of accumulated depreciation of $4,774.5 and $4,332.0, respectively | 4,774.5 | 4,332 |
Intangible assets, net of accumulated amortization of $923.6 and $795.1, respectively | $ 923.6 | $ 795.1 |
Members’ equity: | ||
Common units issued (in shares) | 468,980,630 | 484,277,258 |
Common units outstanding (in shares) | 468,980,630 | 484,277,258 |
Accounts payable, related parties | $ 2.5 | $ 1.6 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues: | ||||
Revenue from contracts with customers | $ 9,527.8 | $ 6,845 | $ 3,915.8 | |
Gain (loss) on derivative activity | 14.3 | (159.1) | (22) | |
Total revenues | 9,542.1 | 6,685.9 | 3,893.8 | |
Operating costs and expenses: | ||||
Cost of sales, exclusive of operating expenses and depreciation and amortization | [1] | 7,572.8 | 5,189.9 | 2,388.5 |
Operating expenses | 524.9 | 362.9 | 373.8 | |
Depreciation and amortization | 639.4 | 607.5 | 638.6 | |
Impairments | 0 | 0.8 | 362.8 | |
(Gain) loss on disposition of assets | 18 | (1.5) | 8.8 | |
General and administrative | 125.2 | 107.8 | 103.3 | |
Total operating costs and expenses | 8,880.3 | 6,267.4 | 3,875.8 | |
Operating income | 661.8 | 418.5 | 18 | |
Other income (expense): | ||||
Interest expense, net of interest income | (245) | (238.7) | (223.3) | |
Gain (loss) on extinguishment of debt | (6.2) | 0 | 32 | |
Income from unconsolidated affiliate investments | (5.6) | (11.5) | 0.6 | |
Other income | 0.8 | 0 | 0.3 | |
Total other expense | (256) | (250.2) | (190.4) | |
Income (loss) before non-controlling interest and income taxes | 405.8 | 168.3 | (172.4) | |
Income tax benefit (expense) | 94.9 | (25.4) | (143.2) | |
Net income (loss) | 500.7 | 142.9 | (315.6) | |
Net income attributable to non-controlling interest | 139.4 | 120.5 | 105.9 | |
Net income (loss) attributable to ENLC | $ 361.3 | $ 22.4 | $ (421.5) | |
Net income (loss) attributable to ENLC per unit: | ||||
Basic common unit (in dollars per share) | $ 0.76 | $ 0.05 | $ (0.86) | |
Diluted common unit (in dollars per share) | $ 0.74 | $ 0.05 | $ (0.86) | |
Product sales | ||||
Revenues: | ||||
Revenue from contracts with customers | $ 8,564.9 | $ 5,994 | $ 2,977.5 | |
Midstream services | ||||
Revenues: | ||||
Revenue from contracts with customers | $ 962.9 | $ 851 | $ 938.3 | |
[1]Includes related party cost of sales of $28.2 million, $17.9 million, and $8.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Related party cost of sales | $ 28.2 | $ 17.9 | $ 8.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Statement of Comprehensive Income [Abstract] | |||||||
Net income (loss) | $ 500.7 | $ 142.9 | $ (315.6) | ||||
Unrealized gain (loss) on designated cash flow hedge | [2] | 1.4 | [1] | 13.9 | [3] | (4.3) | [4] |
Comprehensive income (loss) | 502.1 | 156.8 | (319.9) | ||||
Comprehensive income attributable to non-controlling interest | 139.4 | 120.5 | 105.9 | ||||
Comprehensive income (loss) attributable to ENLC | $ 362.7 | $ 36.3 | $ (425.8) | ||||
[1]Includes a tax expense of $0.5 million.[2]Includes tax expense of $0.5 million and $4.3 million for the years ended December 31, 2022 and 2021, respectively, and a tax benefit of $1.3 million for the year ended December 31, 2020.[3]Includes a tax expense of $4.3 million.[4]Includes a tax benefit of $1.3 million. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Tax benefit (expense) | $ (0.5) | $ (4.3) | $ 1.3 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Members' Equity - USD ($) $ in Millions | Total | Series B Preferred Units | Series C Preferred Units | Common Units | Accumulated Other Comprehensive Loss | Non-Controlling Interest | Non-Controlling Interest Series B Preferred Units | Non-Controlling Interest Series C Preferred Units | Redeemable Non-controlling interest (Temporary Equity) | ||
Member equity, beginning balance at Dec. 31, 2019 | $ 3,806.1 | $ 2,135.5 | $ (11) | $ 1,681.6 | |||||||
Units outstanding, beginning balance (in shares) at Dec. 31, 2019 | 487,800,000 | ||||||||||
Increase (Decrease) in Members' Equity | |||||||||||
Conversion of unit-based awards for common units, net of units withheld for taxes | (4.7) | $ (4.7) | |||||||||
Conversion of unit-based awards for common units, net of units withheld for taxes (in shares) | 2,000,000 | ||||||||||
Unit-based compensation | 33 | $ 33 | |||||||||
Contributions from non-controlling interests | 52.6 | 52.6 | |||||||||
Distributions | (353.3) | (232.7) | (120.6) | $ (0.6) | |||||||
Unrealized gain (loss) on designated cash flow hedge | [1] | (4.3) | [2] | (4.3) | |||||||
Fair value adjustment related to redeemable non-controlling interest | 0.4 | (0.6) | |||||||||
Redemption and repurchase of preferred units | (4) | ||||||||||
Common units repurchased | $ (1.2) | $ (1.2) | |||||||||
Common units repurchased (in shares) | (383,614) | (400,000) | |||||||||
Net income (loss) | $ (315.6) | $ (421.5) | 105.9 | ||||||||
Member equity, end balance at Dec. 31, 2020 | 3,213 | $ 1,508.8 | (15.3) | 1,719.5 | |||||||
Units outstanding, end balance (in shares) at Dec. 31, 2020 | 489,400,000 | ||||||||||
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2019 | 5.2 | ||||||||||
Increase (Decrease) in Temporary Equity | |||||||||||
Distributions | (353.3) | $ (232.7) | (120.6) | (0.6) | |||||||
Fair value adjustment related to redeemable non-controlling interest | 0.4 | (0.6) | |||||||||
Redemption and repurchase of preferred units | (4) | ||||||||||
Redeemable noncontrolling interest, ending balance at Dec. 31, 2020 | 0 | ||||||||||
Increase (Decrease) in Members' Equity | |||||||||||
Conversion of unit-based awards for common units, net of units withheld for taxes | (2) | $ (2) | |||||||||
Conversion of unit-based awards for common units, net of units withheld for taxes (in shares) | 1,000,000 | ||||||||||
Unit-based compensation | 23.6 | $ 23.6 | |||||||||
Contributions from non-controlling interests | 3.2 | 3.2 | |||||||||
Distributions | (317.4) | (186.8) | (130.6) | (0.2) | |||||||
Unrealized gain (loss) on designated cash flow hedge | [3] | 13.9 | [2] | 13.9 | |||||||
Fair value adjustment related to redeemable non-controlling interest | (0.1) | 0.2 | |||||||||
Redemption and repurchase of preferred units | (50) | (50) | |||||||||
Common units repurchased | $ (40.1) | $ (40.1) | |||||||||
Common units repurchased (in shares) | (6,091,001) | (6,100,000) | |||||||||
Net income (loss) | $ 142.9 | $ 22.4 | 120.5 | ||||||||
Member equity, end balance at Dec. 31, 2021 | $ 2,987 | $ 1,325.8 | (1.4) | 1,662.6 | |||||||
Units outstanding, end balance (in shares) at Dec. 31, 2021 | 484,277,258 | 484,300,000 | |||||||||
Increase (Decrease) in Temporary Equity | |||||||||||
Distributions | $ (317.4) | $ (186.8) | (130.6) | (0.2) | |||||||
Fair value adjustment related to redeemable non-controlling interest | (0.1) | 0.2 | |||||||||
Redemption and repurchase of preferred units | (50) | (50) | |||||||||
Redeemable noncontrolling interest, ending balance at Dec. 31, 2021 | $ 0 | ||||||||||
Increase (Decrease) in Members' Equity | |||||||||||
Conversion of unit-based awards for common units, net of units withheld for taxes | (16.1) | $ (16.1) | |||||||||
Conversion of unit-based awards for common units, net of units withheld for taxes (in shares) | 3,100,000 | ||||||||||
Unit-based compensation | 31.8 | $ 31.8 | |||||||||
Contributions from non-controlling interests | 32.9 | 32.9 | |||||||||
Distributions | (384.3) | (221.4) | (162.9) | ||||||||
Unrealized gain (loss) on designated cash flow hedge | [4] | 1.4 | [2] | 1.4 | |||||||
Redemption and repurchase of preferred units | $ (50.5) | $ (15.2) | $ (50.5) | $ (15.2) | |||||||
Common units repurchased | $ (175) | $ (175) | |||||||||
Common units repurchased (in shares) | (18,374,054) | (18,400,000) | |||||||||
Net income (loss) | $ 500.7 | $ 361.3 | 139.4 | ||||||||
Member equity, end balance at Dec. 31, 2022 | $ 2,912.7 | $ 1,306.4 | $ 0 | 1,606.3 | |||||||
Units outstanding, end balance (in shares) at Dec. 31, 2022 | 468,980,630 | 469,000,000 | |||||||||
Increase (Decrease) in Temporary Equity | |||||||||||
Distributions | $ (384.3) | $ (221.4) | $ (162.9) | ||||||||
Redemption and repurchase of preferred units | $ (50.5) | $ (15.2) | $ (50.5) | $ (15.2) | |||||||
[1]Includes a tax benefit of $1.3 million.[2]Includes tax expense of $0.5 million and $4.3 million for the years ended December 31, 2022 and 2021, respectively, and a tax benefit of $1.3 million for the year ended December 31, 2020.[3]Includes a tax expense of $4.3 million.[4]Includes a tax expense of $0.5 million. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Members' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Income tax expense (benefit) | $ 0.5 | $ 4.3 | $ (1.3) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 500.7 | $ 142.9 | $ (315.6) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 639.4 | 607.5 | 638.6 |
Impairments | 0 | 0.8 | 362.8 |
(Gain) loss on disposition of assets | 18 | (1.5) | 8.8 |
Non-cash unit-based compensation | 30.4 | 25.3 | 28.4 |
Utility credits redeemed (earned) | 31.1 | (32.6) | 0 |
Non-cash (gain) loss on derivatives recognized in net income (loss) | (38.3) | 10.3 | 14.8 |
(Gain) loss on extinguishment of debt | 6.2 | 0 | (32) |
Amortization of debt issuance costs and net discount of senior unsecured notes | 5.5 | 5.2 | 4.6 |
Amortization of designated cash flow hedge | 1.9 | 12.5 | 0.5 |
Payments to terminate interest rate swaps | 0 | (1.8) | (10.9) |
Deferred income tax expense (benefit) | (95.3) | 24.6 | 142.1 |
(Income) loss from unconsolidated affiliate investments | 5.6 | 11.5 | (0.6) |
Other operating activities | (4.3) | (2.2) | 0.8 |
Changes in assets and liabilities: | |||
Accounts receivable, accrued revenue, and other | 102.4 | (259.9) | (21.5) |
Natural gas and NGLs inventory, prepaid expenses, and other | (115) | (13.6) | 15.1 |
Accounts payable, accrued product purchases, and other accrued liabilities | (39) | 328.3 | (104.8) |
Net cash provided by operating activities | 1,049.3 | 857.3 | 731.1 |
Cash flows from investing activities: | |||
Additions to property and equipment | (332.5) | (184) | (302.2) |
Acquisitions, net of cash acquired | (390.3) | (56.7) | (32.3) |
Contributions to unconsolidated affiliate investments | (65.9) | 0 | 0 |
Proceeds from sale of property | 12.8 | 4.8 | 17.6 |
Other investing activities | 2.9 | 4.5 | (0.8) |
Net cash used in investing activities | (773) | (231.4) | (317.7) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 4,911.5 | 1,234.5 | 1,650 |
Repayments on borrowings | (4,549.3) | (1,469.5) | (1,786) |
Debt financing costs | (14.1) | (0.3) | (7.7) |
Payment of installment payable for the Amarillo Rattler Acquisition | (10) | 0 | 0 |
Payment of inactive easement commitment | (10) | 0 | 0 |
Common unit repurchases | (175) | (40.1) | (1.2) |
Conversion of unit-based awards for common units, net of units withheld for taxes | (16.1) | (2) | (4.7) |
Distributions to members | (221.4) | (186.8) | (232.7) |
Distributions to non-controlling interests | (162.9) | (130.8) | (121.2) |
Contributions from non-controlling interests | 32.9 | 3.2 | 52.6 |
Other financing activities | 0.2 | 2.5 | (0.3) |
Net cash used in financing activities | (279.9) | (639.3) | (451.2) |
Net decrease in cash and cash equivalents | (3.6) | (13.4) | (37.8) |
Cash and cash equivalents, beginning of period | 26.2 | 39.6 | 77.4 |
Cash and cash equivalents, end of period | 22.6 | 26.2 | 39.6 |
Series B Preferred Units | |||
Cash flows from financing activities: | |||
Redemption and repurchase of preferred units | (50.5) | (50) | 0 |
Series C Preferred Units | |||
Cash flows from financing activities: | |||
Redemption and repurchase of preferred units | $ (15.2) | $ 0 | $ 0 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | (1) Organization and Nature of Business (a) Organization of Business ENLC is a Delaware limited liability company formed in October 2013. The Company’s common units are traded on the New York Stock Exchange under the symbol “ENLC.” As of December 31, 2022, GIP, through GIP III Stetson I, L.P. and GIP III Stetson II, L.P, owns 41.6% of the outstanding limited liability company interests in ENLC. In addition to GIP’s equity interests in ENLC, GIP III Stetson I, L.P. maintains control over the Managing Member through its ownership of all the equity interests in the Managing Member. ENLC owns all of ENLK’s common units and also owns all of the membership interests of the General Partner. The General Partner manages ENLK’s operations and activities. (b) Nature of Business We primarily focus on providing midstream energy services, including: • gathering, compressing, treating, processing, transporting, storing, and selling natural gas; • fractionating, transporting, storing, and selling NGLs; and • gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and condensate, in addition to brine disposal services. As of December 31, 2022, our midstream energy asset network includes approximately 13,600 miles of pipelines, 26 natural gas processing plants with approximately 6.0 Bcf/d of processing capacity, seven fractionators with approximately 320,000 Bbls/d of fractionation capacity, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, brine disposal wells, a crude oil trucking fleet, and equity investments in certain joint ventures. Our operations are based in the United States, and our sales are derived primarily from domestic customers. Our natural gas business includes connecting the wells of producers in our market areas to our gathering systems. Our gathering systems consist of networks of pipelines that collect natural gas from points at or near producing wells and transport it to our processing plants or to larger pipelines for further transmission. We operate processing plants that remove NGLs from the natural gas stream that is transported to the processing plants by our own gathering systems or by third-party pipelines. In conjunction with our gathering and processing business, we may purchase natural gas and NGLs from producers and other supply sources and sell that natural gas or NGLs to utilities, industrial consumers, marketers, and pipelines. Our transmission pipelines receive natural gas from our gathering systems and from third-party gathering and transmission systems and deliver natural gas to industrial end-users, utilities, and other pipelines. Our fractionators separate NGLs into separate purity products, including ethane, propane, iso-butane, normal butane, and natural gasoline. Our fractionators receive NGLs primarily through our transmission lines that transport NGLs from East Texas and from our South Louisiana processing plants. Our fractionators also have the capability to receive NGLs by truck or rail terminals. We also have agreements pursuant to which third parties transport NGLs from our West Texas and Central Oklahoma operations to our NGL transmission lines that then transport the NGLs to our fractionators. In addition, we have NGL storage capacity to provide storage for customers. Our crude oil and condensate business includes the gathering and transmission of crude oil and condensate via pipelines, barges, rail, and trucks, in addition to condensate stabilization and brine disposal. We also purchase crude oil and condensate from producers and other supply sources and sell that crude oil and condensate through our terminal facilities to various markets. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) Significant Accounting Policies (a) Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with GAAP. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to the financial statements for the prior period to conform to current period presentation. The effect of these reclassifications had no impact on previously reported members’ equity or net income (loss). (b) Management’s Use of Estimates The preparation of financial statements in accordance with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates. (c) Revenue Recognition We generate the majority of our revenues from midstream energy services, including gathering, transmission, processing, fractionation, storage, condensate stabilization, brine services, and marketing, through various contractual arrangements, which include fee-based contract arrangements or arrangements where we purchase and resell commodities in connection with providing the related service and earn a net margin for our fee. While our transactions vary in form, the essential element of most of our transactions is the use of our assets to transport a product or provide a processed product to an end-user or marketer at the tailgate of the plant, pipeline, or barge, truck, or rail terminal. Revenues from both “Product sales” and “Midstream services” represent revenues from contracts with customers and are reflected on the consolidated statements of operations as follows: • Product sales— Product sales represent the sale of natural gas, NGLs, crude oil, and condensate where the product is purchased and resold in connection with providing our midstream services as outlined above. • Midstream services— Midstream services represent all other revenue generated as a result of performing our midstream services outlined above. Evaluation of Our Contractual Performance Obligations Performance obligations in our contracts with customers include: • promises to perform midstream services for our customers over a specified contractual term and/or for a specified volume of commodities; and • promises to sell a specified volume of commodities to our customers. The identification of performance obligations under our contracts requires a contract-by-contract evaluation of when control, including the economic benefit, of commodities transfers to and from us (if at all). For contracts where control of commodities transfers to us before we perform our services, we generally have no performance obligation for our services, and accordingly, we do not consider these revenue-generating contracts. Based on the control determination, all contractually-stated fees that are deducted from our payments to producers or other suppliers for commodities purchased are reflected as a reduction in the cost of such commodity purchases. Alternatively, for contracts where control of commodities transfers to us after we perform our services, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating and recognize the fees received for satisfying them as midstream services revenues over time as we satisfy our performance obligations. For contracts where control of commodities never transfers to us and we simply earn a fee for our services, we recognize these fees as midstream services revenues over time as we satisfy our performance obligations. We also evaluate our contractual arrangements that contain a purchase and sale of commodities under the principal/agent provisions in ASC 606. For contracts where we possess control of the commodity and act as principal in the purchase and sale, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities when purchased. For contracts in which we do not possess control of the commodity and are acting as an agent, our consolidated statements of operations only reflect midstream services revenues that we earn based on the fees contained in the applicable contract. Accounting Methodology for Certain Contracts For NGL contracts in which we purchase raw mix NGLs and subsequently transport, fractionate, and market the NGLs, we consider the contractually-stated fees to serve as pricing mechanisms that reduce the cost of the commodities purchased. We account for the contractually-stated fees on the consolidated statements of operations as a reduction of cost of sales of such commodities purchased upon receipt of the raw mix NGLs, because we determined that the control, including the economic benefit, of commodities has passed to us once the raw mix NGLs have been purchased from the customer. Upon sale of the NGLs to a third-party customer, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities purchased. For our crude oil and condensate service contracts in which we purchase the commodity, we utilize a similar approach under as outlined above for NGL contracts. For our natural gas gathering and processing contracts in which we perform midstream services and also purchase the natural gas, we determine if economic control of the commodities has passed from the producer to us before or after we perform our services (if at all). Control is assessed on a contract-by-contract basis by analyzing each contract’s provisions, which can include provisions for: the customer to take its residue gas and/or NGLs in-kind; fixed or actual NGL or keep-whole recovery; commodity purchase prices at weighted average sales price or market index-based pricing; and various other contract-specific considerations. Based on this control assessment, our gathering and processing contracts fall into two primary categories: • For gathering and processing contracts in which there is a commodity purchase and analysis of the contract provisions indicates that control, including the economic benefit, of the natural gas passes to us when the natural gas is brought into our system, we do not consider these contracts to contain performance obligations for our services. As control of the natural gas passes to us prior to performing our gathering and processing services, we are, in effect, performing our services for our own benefit. Based on this control determination, we consider the contractually-stated fees to serve as pricing mechanisms that reduce the cost of such commodity purchased upon receipt of the natural gas, rather than being recorded as midstream services revenue. Upon sale of the residue gas and/or NGLs to a third-party customer, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities purchased, net of fees. • For gathering and processing contracts in which there is a commodity purchase and analysis of the contract provisions indicates that control, including the economic benefit, of the natural gas does not pass to us until after the natural gas has been gathered and processed, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating, and we recognize the fees received for satisfying these performance obligations as midstream services revenues over time as we satisfy our performance obligations. For midstream service contracts related to NGL, crude oil, or natural gas gathering and processing in which there is no commodity purchase or control of the commodity never passes to us and we simply earn a fee for our services, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating, and we recognize the fees received for satisfying these performance obligations as midstream services revenue over time as we satisfy our performance obligations. For our natural gas transmission contracts, we determined that control of the natural gas never transfers to us and we simply earn a fee for our services. Therefore, we recognize these fees as midstream services revenue over time as we satisfy our performance obligations. We also evaluate our commodity marketing contracts, under which we purchase and sell commodities in connection with our gas, NGL, and crude and condensate midstream services, pursuant to ASC 606, including the principal/agent provisions. For contracts in which we possess control of the commodity and act as principal in the purchase and sale of commodities, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities when purchased. For contracts in which we do not possess control of the commodity and are acting as agent, our consolidated statements of operations only reflect midstream services revenues that we earn based on the fees contained in the applicable contract. Satisfaction of Performance Obligations and Recognition of Revenue For our commodity sales contracts, we satisfy our performance obligations at the point in time at which the commodity transfers from us to the customer. This transfer pattern aligns with our billing methodology. Therefore, we recognize product sales revenue at the time the commodity is delivered and in the amount to which we have the right to invoice the customer. For our midstream service contracts that contain revenue-generating performance obligations, we satisfy our performance obligations over time as we perform the midstream service and as the customer receives the benefit of these services over the term of the contract. We recognize revenue in the amount to which the entity has a right to invoice, since we have a right to consideration from our customer in an amount that corresponds directly with the value to the customer of our performance completed to date. Accordingly, we continue to recognize revenue over time as our midstream services are performed. We generally accrue one month of sales and the related natural gas, NGL, condensate, and crude oil purchases and reverse these accruals when the sales and purchases are invoiced and recorded in the subsequent month. Actual results could differ from the accrual estimates. We typically receive payment for invoiced amounts within one month, depending on the terms of the contract. Prior to issuing our financial statements, we review our revenue and purchases estimates based on available information to determine if adjustments are required. We account for taxes collected from customers attributable to revenue transactions and remitted to government authorities on a net basis (excluded from revenues). Minimum Volume Commitments and Firm Transportation Contracts The following table summarizes the contractually committed fees (in millions) that we expect to recognize in our consolidated statements of operations, in either revenue or reductions to cost of sales, from MVC and firm transportation contractual provisions. Under these agreements, our customers or suppliers agree to transport or process a minimum volume of commodities on our system over an agreed period. If a customer or supplier fails to meet the minimum volume specified in such agreement, the customer or supplier is obligated to pay a contractually determined fee based upon the shortfall between actual volumes and the contractually stated volumes. All amounts in the table below are determined using the contractually-stated MVC or firm transportation volumes specified for each period multiplied by the relevant deficiency or reservation fee. Actual amounts could differ due to the timing of revenue recognition or reductions to cost of sales resulting from make-up right provisions included in our agreements, as well as due to nonpayment or nonperformance by our customers. We record revenue under MVC and firm transportation contracts during periods of shortfall when it is known that the customer cannot, or will not, make up the deficiency. These fees do not represent the shortfall amounts we expect to collect under our MVC and firm transportation contracts, as we generally do not expect volume shortfalls to equal the full amount of the contractual MVCs and firm transportation contracts during these periods. Contractually Committed Fees Commitments 2023 $ 135.0 2024 103.8 2025 91.7 2026 90.7 2027 74.9 Thereafter 926.5 Total $ 1,422.6 (d) Gas Imbalance Accounting Quantities of natural gas and NGLs over-delivered or under-delivered related to imbalance agreements are recorded monthly as receivables or payables using weighted average prices at the time of the imbalance. These imbalances are typically settled with deliveries of natural gas or NGLs. We had imbalance payables of $17.3 million and $16.3 million at December 31, 2022 and 2021, respectively, which approximate the fair value of these imbalances. We had imbalance receivables of $20.2 million and $14.5 million at December 31, 2022 and 2021, respectively, which are carried at the lower of cost or market value. Imbalance receivables and imbalance payables are included in the line items “Accrued revenue and other” and “Accrued gas, NGLs, condensate, and crude oil purchases,” respectively, on the consolidated balance sheets. (e) Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. (f) Income Taxes Certain of our operations are subject to income taxes assessed by the federal and various state jurisdictions in the U.S. Additionally, certain of our operations are subject to tax assessed by the state of Texas that is computed based on modified gross margin as defined by the State of Texas. The Texas franchise tax is presented as income tax expense in the accompanying statements of operations. We account for deferred income taxes related to the federal and state jurisdictions using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for the future tax benefits attributable to the expected utilization of existing tax net operating loss carryforwards and other types of carryforwards. If the future utilization of some portion of carryforwards is determined to be unlikely, a valuation allowance is provided to reduce the recorded tax benefits from such assets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In the event interest or penalties are incurred with respect to income tax matters, our policy will be to include such items in income tax expense. We record deferred tax assets and liabilities on a net basis on the consolidated balance sheets, with deferred tax assets included in “Other assets, net” and deferred tax liabilities included in “Deferred tax liability, net.” (g) Natural Gas, Natural Gas Liquids, Crude Oil, and Condensate Inventory Our inventories of products consist of natural gas, NGLs, crude oil, and condensate. We report these assets at the lower of cost or market value which is determined by using the weighted average cost method. (h) Property and Equipment Property and equipment are stated at historical cost less accumulated depreciation. Assets acquired in a business combination are recorded at fair value. Routine repairs and maintenance are charged against income when incurred. Renewals and improvements that extend the useful life or improve the function of the properties are capitalized. Interest costs for material projects are capitalized to property and equipment during the period the assets are undergoing preparation for intended use. The components of property and equipment, net of accumulated depreciation are as follows (in millions): Year Ended December 31, 2022 2021 Transmission assets $ 1,452.0 $ 1,442.2 Gathering systems 5,370.0 4,903.8 Gas processing plants and fractionation facilities 4,237.8 4,119.1 Other property and equipment 165.0 161.0 Construction in process 105.7 94.2 Property and equipment 11,330.5 10,720.3 Accumulated depreciation (4,774.5) (4,332.0) Property and equipment, net of accumulated depreciation $ 6,556.0 $ 6,388.3 Depreciation Expense. Depreciation is calculated using the straight-line method based on the estimated useful life of each asset, as follows: Useful Lives Transmission assets 20 - 25 years Gathering systems 20 - 25 years Gas processing plants and fractionation facilities 20 - 25 years Other property and equipment 3 - 25 years Gain or Loss on Disposition. Upon the disposition or retirement of property and equipment, any gain or loss is recognized in operating income in the consolidated statements of operations. For the years ended December 31, 2022, 2021, and 2020, dispositions primarily related to the sale of certain non-core assets. The (gain) loss on disposition of assets is as follows (in millions): Year Ended December 31, 2022 2021 2020 Net book value of assets disposed $ 30.8 $ 3.3 $ 36.4 Less: Proceeds from sales (12.8) (4.8) (27.6) (Gain) loss on disposition of assets $ 18.0 $ (1.5) $ 8.8 Impairment Review . In accordance with ASC 360, Property, Plant, and Equipment , we evaluate long-lived assets of identifiable business activities for potential impairment whenever events or changes in circumstances, or triggering events, indicate that their carrying value may not be recoverable. Triggering events include, but are not limited to, significant changes in the use of the asset group, current operating results that are significantly less than forecasted results, negative industry or economic trends including changes in commodity prices, significant adverse changes in legal or regulatory factors, or an expectation that it is more likely than not that an asset group will be sold before the end of its useful life. The carrying amount of a long-lived asset is not recoverable when it exceeds the undiscounted sum of the future cash flows expected to result from the use and eventual disposition of the asset. Estimates of expected future cash flows represent management’s best estimate based on reasonable and supportable assumptions. When the carrying amount of a long-lived asset is not recoverable, an impairment is recognized equal to the excess of the asset’s carrying value over its fair value, which is based on inputs that are not observable in the market, and thus represent Level 3 inputs. When determining whether impairment of our long-lived assets has occurred, we must estimate the undiscounted cash flows attributable to the asset. Our estimate of cash flows is based on assumptions regarding: • the future fee-based rate of new business or contract renewals; • the purchase and resale margins on natural gas, NGLs, crude oil, and condensate; • the volume of natural gas, NGLs, crude oil, and condensate available to the asset; • markets available to the asset; • operating expenses; and • future natural gas, NGLs, crude oil, and condensate prices. The estimated volume of natural gas, NGLs, crude oil, and condensate available to an asset is sometimes based on assumptions regarding future drilling activity, which may be dependent in part on natural gas, NGL, crude oil, and condensate prices. Projections of natural gas, NGL, crude oil, and condensate volumes and future commodity prices are inherently subjective and contingent upon a number of variable factors, including but not limited to: • changes in general economic conditions or demand for our products in regions in which our markets are located; • the availability and prices of natural gas, NGLs, crude oil, and condensate supply; • our ability to negotiate favorable sales agreements; • the risks that natural gas, NGLs, crude oil, and condensate exploration and production activities will not occur or be successful; • our dependence on certain key customers, producers, and transporters of natural gas, NGLs, crude oil, and condensate; and • competition from other midstream companies, including major energy companies. We recognized impairment expense related to property and equipment as follows (in millions): Year Ended December 31, 2022 2021 2020 (1) Property and equipment impairment $ — $ 0.6 $ 168.0 ____________________________ (1) For the year ended December 31, 2020, we recognized impairment on property and equipment related to a portion of our Louisiana reporting segment because the carrying amounts were not recoverable based on our expected future cash flows, and $3.4 million of impairments related to certain cancelled projects. (i) Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and the effective portion of gains or losses on derivative financial instruments that qualify as cash flow hedges pursuant to ASC 815. For additional information about the effect of financial instruments on comprehensive income (loss), see “Note 13—Derivatives.” (j) Equity Method of Accounting We account for investments where we do not control the investment but have the ability to exercise significant influence using the equity method of accounting. Under this method, unconsolidated affiliate investments are initially carried at the acquisition cost, increased by our proportionate share of the investee’s net income and by contributions made, and decreased by our proportionate share of the investee’s net losses and by distributions received. We evaluate our unconsolidated affiliate investments for potential impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. We recognize impairments of our investments as a loss from unconsolidated affiliates on our consolidated statements of operations. For additional information, see “Note 11—Investment in Unconsolidated Affiliates.” (k) Non-controlling Interests We account for investments where we control the investment using the consolidation method of accounting. Under this method, we consolidate all the assets and liabilities of an investment on our consolidated balance sheets and record non-controlling interest for the portion of the investment that we do not own. We include all of an investment’s results of operations on our consolidated statements of operations and record income attributable to non-controlling interests for the portion of the investment that we do not own. Our non-controlling interests for the years ended December 31, 2022, 2021, and 2020 relate to the Series B Preferred Units, the Series C Preferred Units, NGP’s 49.9% ownership of the Delaware Basin JV, and Marathon Petroleum Corporation’s 50.0% ownership interest in the Ascension JV. (l) Goodwill Goodwill is the cost of an acquisition less the fair value of the net identifiable assets of the acquired business. We evaluated goodwill for impairment annually as of October 31 and whenever events or changes in circumstances indicated it was more likely than not that the fair value of a reporting unit is less than its carrying amount. For additional information regarding our previous assessments of goodwill for impairment, see “Note 4—Goodwill and Intangible Assets.” (m) Intangible Assets Intangible assets associated with customer relationships are amortized on a straight-line basis over the expected period of benefits of the customer relationships, which range from ten Intangibles—Goodwill and Other , we evaluate intangibles for potential impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. For additional information regarding our intangible assets, including our assessment of intangible assets for impairment, see “Note 4—Goodwill and Intangible Assets.” (n) Asset Retirement Obligations We recognize liabilities for retirement obligations associated with our pipelines and processing and fractionation facilities. Such liabilities are recognized when there is a legal obligation associated with the retirement of the assets and the amount can be reasonably estimated. The initial measurement of an asset retirement obligation is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the asset retirement cost. Our retirement obligations include estimated environmental remediation costs that arise from normal operations and are associated with the retirement of the long-lived assets. The asset retirement cost is depreciated using the straight-line depreciation method similar to that used for the associated property and equipment. (o) Leases We account for leases under ASC 842 using the modified retrospective approach whereby we recognized leases on our consolidated balance sheet by recording a right-of-use asset and lease liability. We applied certain practical expedients that were allowed in the adoption of ASC 842, including not reassessing existing contracts for lease arrangements, not reassessing existing lease classification, not recording a right-of-use asset or lease liability for leases of twelve months or less, and not separating lease and non-lease components of a lease arrangement. We evaluate new contracts at inception to determine if the contract conveys the right to control the use of an identified asset for a period of time in exchange for periodic payments. A lease exists if we obtain substantially all of the economic benefits of an asset, and we have the right to direct the use of that asset. When a lease exists, we record a right-of-use asset that represents our right to use the asset over the lease term and a lease liability that represents our obligation to make payments over the lease term. Lease liabilities are recorded at the sum of future lease payments discounted by the collateralized rate we could obtain to lease a similar asset over a similar period, and right-of-use assets are recorded equal to the corresponding lease liability, plus any prepaid or direct costs incurred to enter the lease, less the cost of any incentives received from the lessor. For more information, see “Note 6—Leases.” (p) Derivatives We use derivative instruments to hedge against changes in cash flows related to product price. We generally determine the fair value of swap contracts based on the difference between the derivative’s fixed contract price and the underlying market price at the determination date. The asset or liability related to the derivative instruments is recorded on the balance sheet at the fair value of derivative assets or liabilities in accordance with ASC 815. Changes in fair value of derivative instruments are recorded in gain or loss on derivative activity in the period of change. Realized gains and losses on commodity-related derivatives are recorded as gain or loss on derivative activity within revenues in the consolidated statements of operations in the period incurred. Settlements of derivatives are included in cash flows from operating activities. We periodically enter into interest rate swaps in connection with new debt issuances to hedge variability in interest rates and effectively lock in the benchmark interest rate at the inception of the swap. In April 2019, we entered into $850.0 million of interest rate swaps to manage the interest rate risk associated with our floating-rate, LIBOR-based borrowings. Under this arrangement, we paid a fixed interest rate of 2.28% in exchange for LIBOR-based variable interest through December 2021. There was no ineffectiveness related to this hedge. During 2021 and 2020, we terminated a portion of the interest rate swaps in several increments in connection with repayments of the Term Loan, which was one of our floating-rate, LIBOR-based borrowings, and the remaining interest rate swaps expired on December 10, 2021. The following table presents the interest rate swaps terminations and the associated cash payments during 2021 and 2020 (in millions): Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 For additional information, see “Note 13—Derivatives.” (q) Concentrations of Credit Risk Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of trade accounts receivable and commodity financial instruments. Management believes the risk is limited, other than our exposure to key customers discussed below, since our customers represent a broad and diverse group of energy marketers and end users. The following customers individually represented greater than 10% of our consolidated revenues during the years ended December 31, 2022, 2021, or 2020. No other customers represented greater than 10% of our consolidated revenues during the periods presented. Year Ended December 31, 2022 2021 2020 Devon 6.4 % 6.7 % 14.4 % Dow Hydrocarbons and Resources LLC 14.2 % 14.5 % 13.2 % Marathon Petroleum Corporation 14.7 % 13.4 % 12.2 % We continually monitor and review the credit exposure of our counter-parties based on various credit quality indicators and metrics. We obtain letters of credit or other appropriate security when considered necessary to limit the risk of loss. We record reserves for uncollectible accounts on a specific identification basis since there is not a large volume of late paying customers and we do not expect to experience significant levels of default on our trade accounts receivable. As of December 31, 2022 and 2021, we had a reserve for uncollectible receivables of $0.1 million and $0.3 million, respectively. (r) Environmental Costs Environmental expenditures are expensed or capitalized depending on the nature of the expenditures and the future economic benefit. Expenditures that relate to an existing condition caused by past operations that do not contribute to current or future revenue generation are expensed. Liabilities for these expenditures are recorded on an undiscounted basis (or a discounted basis when the obligation can be settled at fixed and determinable amounts) when environmental assessments or clean-ups are probable and the costs can be reasonably estimated. Environmental expenditures were not material for the years ended December 31, 2022, 2021, and 2020. (s) Unit-Based Awards We recognize compensation cost related to all unit-based awards in our consolidated financial statements in accordance with ASC 718. For additional information, see “Note 12—Employee Incentive Plans.” (t) Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with a loss contingency are expensed as incurred. For additional information, see “Note 15—Commitments and Contingencies.” (u) Debt Issuance Costs Costs incurred in connection with the issuance of long-term debt are deferred and amortized into interest expense using the straight-line method over the term of the related debt. Gains or losses on debt repurchases, redemptions, and debt extinguishments include any associated unamortized debt issue costs. Unamortized debt issuance costs totaling $34.9 million and $27.8 million as of December 31, 2022 and 2021, respectively, are included in “Long-term debt” or “Current maturities of long-term debt,” as applicable, on the consolidated balance sheets as a direct reduction from the carrying amount of the debt. (v) Redeemable Non-Controlling Interest Non-controlling interests that contain an opt |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | (3) Acquisitions Amarillo Rattler Acquisition On April 30, 2021, we completed the acquisition of Amarillo Rattler, LLC, the owner of a gathering and processing system located in the Midland Basin. In connection with the purchase, we entered into an amended and restated gas gathering and processing agreement with Diamondback E&P LLC, strengthening our dedicated acreage position with that entity. We acquired the system with an upfront payment of $50.0 million, which was paid with cash-on-hand, with an additional $10.0 million that was paid on April 30, 2022, and contingent consideration capped at $15.0 million and payable between 2024 and 2026 based on Diamondback E&P LLC’s drilling activity above historical levels. Under the acquisition method of accounting, the acquired assets of Amarillo Rattler, LLC have been recorded at their respective fair values as of the date of the acquisition. Determining the fair value of the assets of Amarillo Ratter, LLC requires judgment and certain assumptions to be made, particularly related to the valuation of acquired customer relationships. The inputs and assumptions related to the customer relationships are categorized as level 3 in the fair value hierarchy. The following table presents the fair value of the identified assets received and liabilities assumed at the acquisition date (in millions): Consideration Cash (including working capital payment) $ 50.6 Installment payable 10.0 Contingent consideration fair value (1) 6.9 Total consideration: $ 67.5 Purchase price allocation Assets acquired: Current assets (including $1.3 million in cash) $ 1.4 Property and equipment 16.3 Intangible assets 50.6 Other assets, net (2) 0.6 Liabilities assumed: Current liabilities (0.8) Other long-term liabilities (2) (0.6) Net assets acquired $ 67.5 ____________________________ (1) The estimated fair value of the Amarillo Rattler, LLC contingent consideration was calculated in accordance with the fair value guidance contained in ASC 820. There are a number of assumptions and estimates factored into these fair values and actual contingent consideration payments could differ from the estimated fair values. (2) “Other assets, net” and “Other long-term liabilities” consist of the right-of-use asset and lease liability, respectively, recorded through the acquisition of Amarillo Rattler, LLC. The following table represents our change in carrying value of the Amarillo Rattler contingent consideration liability for the periods stated (in millions): Year Ended December 31, 2022 2021 Contingent consideration liability, beginning of period (1) $ 6.9 $ 6.9 Change in fair value (2.7) — Contingent consideration liability, end of period $ 4.2 $ 6.9 ____________________________ (1) The contingent consideration for the Amarillo Rattler Acquisition was recorded on April 30, 2021. Barnett Shale Acquisition On July 1, 2022, we completed the Barnett Shale Acquisition for a cash purchase price of $275.0 million plus working capital of $14.5 million. These assets include approximately 400 miles of lean and rich gas gathering pipeline and three processing plants with 425 MMcf/d of total processing capacity. We completed this acquisition to increase the scale of our North Texas assets and realize efficiencies by redeploying redundant assets to our other segments, including the Permian segment in the near-term and the CCS business in the future. The following table presents the preliminary fair value of the identified assets received and liabilities assumed at the acquisition date (in millions): Consideration Cash (including working capital payment) $ 289.5 Purchase price allocation Assets acquired: Current assets $ 17.3 Property and equipment 275.0 Liabilities assumed: Current liabilities (2.8) Net assets acquired $ 289.5 We incurred $0.4 million of transaction costs related to the Barnett Shale Acquisition for the year ended December 31, 2022. These costs are included in general and administrative costs in the accompanying consolidated statements of operations. For the period from July 1, 2022 through December 31, 2022, we recognized $39.6 million of revenue and $24.1 million of net income related to the assets acquired. Central Oklahoma Acquisition On December 19, 2022, we completed the Central Oklahoma Acquisition for a cash purchase price of $95.8 million plus preliminary working capital of $4.9 million and an earnout valued at $1.3 million as of December 31, 2022, which was calculated in accordance with ASC 820. The earnout is payable between 2024 and 2027 based on fee revenue earned on certain contractually specified volumes for the annual periods beginning January 1, 2023 through December 31, 2026. The acquired assets include approximately 900 miles of lean and rich gas gathering pipeline and two processing plants with 280 MMcf/d of total processing capacity. We completed this acquisition to increase the scale and efficiency of our Central Oklahoma assets. Under the acquisition method of accounting, the acquired assets and liabilities are recorded at their respective fair values as of the date of completion of the acquisition. The purchase price allocation and valuation of the earnout was based on preliminary estimates and assumptions, which are subject to change within the measurement period (up to one year subsequent to the closing date), as we finalize the valuations of the assets acquired and liabilities assumed upon the closing of the acquisition. As of December 31, 2022, we have allocated the cash purchase price and the fair value of the earnout to tangible assets and have recorded this amount in “Property and equipment” on the consolidated balance sheets. We incurred $0.5 million of transaction costs related to the Central Oklahoma Acquisition for the year ended December 31, 2022. These costs are included in general and administrative costs in the accompanying consolidated statements of operations. For the period from December 19, 2022 through December 31, 2022, we recognized $1.7 million of revenue and $0.6 million of net income related to the assets acquired. Pro Forma of Acquisitions for the Years Ended December 31, 2022 and 2021 The following unaudited pro forma condensed consolidated financial information (in millions) for the years ended December 31, 2022 and 2021 gives effect to the Barnett Shale Acquisition on July 1, 2022 and the Central Oklahoma Acquisition on December 19, 2022 as if each of the acquisitions had occurred on January 1, 2021. On a historical pro forma basis, our consolidated revenues, net income (loss), total assets, and earnings per unit amounts would not have differed materially had the Amarillo Rattler Acquisition been completed on January 1, 2021 rather than April 30, 2021. The unaudited pro forma condensed consolidated financial information has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the transactions taken place on the dates indicated and is not intended to be a projection of future results. Year Ended December 31, 2022 2021 Pro forma total revenues $ 9,630.4 $ 6,782.9 Pro forma net income $ 534.3 $ 157.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | (4) Goodwill and Intangible Assets Goodwill Impairment Analysis for the Year Ended December 31, 2020 During the first quarter of 2020, we determined that a sustained decline in our unit price and weakness in the overall energy sector, driven by low commodity prices and lower consumer demand due to the COVID-19 pandemic, caused a change in circumstances warranting an interim impairment test. Based on these triggering events, we performed a quantitative goodwill impairment analysis on the remaining goodwill in the Permian reporting unit. Based on this analysis, a goodwill impairment loss for our Permian reporting unit in the amount of $184.6 million was recognized as an impairment loss on the consolidated statement of operations for the year ended December 31, 2020. As a result of this impairment loss, we have no goodwill remaining as of December 31, 2020. Intangible Assets Intangible assets associated with customer relationships are amortized on a straight-line basis over the expected period of benefits of the customer relationships, which ranged from 10 to 20 years at the time the intangible assets were originally recorded. The weighted average amortization period for intangible assets is 14.9 years. The following table represents our change in carrying value of intangible assets for the periods stated (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Year Ended December 31, 2022 Customer relationships, beginning of period $ 1,844.8 $ (795.1) $ 1,049.7 Amortization expense — (128.5) (128.5) Customer relationships, end of period $ 1,844.8 $ (923.6) $ 921.2 Year Ended December 31, 2021 Customer relationships, beginning of period $ 1,794.2 $ (668.8) $ 1,125.4 Customer relationships obtained from acquisition of business 50.6 — 50.6 Amortization expense — (126.3) (126.3) Customer relationships, end of period $ 1,844.8 $ (795.1) $ 1,049.7 Year Ended December 31, 2020 Customer relationships, beginning of period $ 1,795.8 $ (545.9) $ 1,249.9 Amortization expense — (123.5) (123.5) Retirements (1) (1.6) 0.6 (1.0) Customer relationships, end of period $ 1,794.2 $ (668.8) $ 1,125.4 ____________________________ (1) Intangible assets retired as a result of the disposition of certain non-core assets. The following table summarizes our estimated aggregate amortization expense for the next five years and thereafter (in millions): 2023 $ 127.6 2024 127.6 2025 110.2 2026 106.3 2027 106.3 Thereafter 343.2 Total $ 921.2 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (5) Related Party Transactions (a) Transactions with Cedar Cove JV For the years ended December 31, 2022, 2021, and 2020, we recorded cost of sales of $28.2 million, $17.9 million, $8.7 million, respectively, related to our purchase of residue gas and NGLs from the Cedar Cove JV subsequent to processing at our Central Oklahoma processing facilities. Additionally, we had accounts payable balances related to transactions with the Cedar Cove JV of $2.5 million and $1.6 million at December 31, 2022 and 2021, respectively. (b) Transactions with GIP General and Administrative Expenses . For the year ended December 31, 2022, we did not record any expenses related to transactions with GIP. For the years ended December 31, 2021 and 2020, we recorded general and administrative expenses of $0.5 million and $0.2 million, respectively, related to personnel secondment services provided by GIP. In March 2022, our data center provider since 2009, CyrusOne Inc. (“CyrusOne”), was purchased by an entity that is owned collectively by funds affiliated with GIP and Kohlberg Kravis Roberts & Co. L.P. William J. Brilliant, a member of our Board and a partner of GIP also serves on the CyrusOne board of directors. For the year ended December 31, 2022, we paid CyrusOne $0.2 million in fees for data center services. GIP Repurchase Agreement . On February 15, 2022, we and GIP entered into an agreement pursuant to which we agreed to repurchase, on a quarterly basis, a pro rata portion of the ENLC common units held by GIP, based upon the number of common units purchased by us during the applicable quarter from public unitholders under our common unit repurchase program. The number of ENLC common units held by GIP that we repurchase in any quarter is calculated such that GIP’s then-existing economic ownership percentage of our outstanding common units is maintained after our repurchases of common units from public unitholders are taken into account, and the per unit price we pay to GIP is the average per unit price paid by us for the common units repurchased from public unitholders. The repurchase agreement was scheduled to terminate as of December 31, 2022 in accordance with its terms. On December 20, 2022, we renewed the repurchase agreement with GIP for 2023 (the “Repurchase Agreement Renewal”) on terms substantially similar to those of the repurchase agreement entered into by the Company and GIP on February 15, 2022. The Repurchase Agreement Renewal will terminate on the earlier of the date (1) on which the authorized funds under the Company’s 2023 common unit repurchase program have been expended, including funds applied to repurchases under the Repurchase Agreement Renewal, (2) on December 31, 2023, or (3) otherwise upon the mutual agreement of the parties thereto. See “Note 10—Members’ Equity” for additional information on the activity related to the GIP repurchase agreement. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | (6) Leases The majority of our leases are for the following types of assets: • Office space. Our primary offices are in Dallas, Houston, and Midland, with smaller offices in other locations near our assets. Our office leases are long-term in nature and represent $46.2 million of our lease liability and $24.2 million of our right-of-use asset as of December 31, 2022. Our office leases represented $51.8 million of our lease liability and $27.9 million of our right-of-use asset as of December 31, 2021. These office leases typically include variable lease costs related to utility expenses, which are determined based on our pro-rata share of the building expenses each month and expensed as incurred. • Compression and other field equipment. We pay third parties to provide compressors or other field equipment for our assets. Under these agreements, a third party installs and operates compressor units based on specifications set by us to meet our compression needs at specific locations. While the third party determines which compressors to install and operates and maintains the units, we have the right to control the use of the compressors and are the sole economic beneficiary of the identified assets. These agreements are typically for an initial term of one • Land and land easements. We make periodic payments to lease land or to have access to our assets. Land leases and easements are typically long-term to match the expected useful life of the corresponding asset and represent $15.6 million of our lease liability and $12.3 million of our right-of-use asset as of December 31, 2022. Land and land easement leases represented $15.6 million of our lease liability and $12.6 million of our right-of-use asset as of December 31, 2021. • Other. Office equipment and other items did not represent any amounts related to our lease liability and our right-of-use asset as of December 31, 2022. We rented office equipment and other items that represented $0.1 million of our lease liability and $0.1 million of our right-of-use asset as of December 31, 2021. Lease balances are recorded on the consolidated balance sheets as follows (in millions): Operating leases: December 31, 2022 December 31, 2021 Other assets, net $ 69.5 $ 60.1 Other current liabilities $ 26.2 $ 18.1 Other long-term liabilities $ 66.2 $ 67.1 Other lease information Weighted-average remaining lease term—Operating leases 8.7 years 10.3 years Weighted-average discount rate—Operating leases 4.7 % 4.9 % Certain of our lease agreements have options to extend the lease for a certain period after the expiration of the initial term. We recognize the cost of a lease over the expected total term of the lease, including optional renewal periods that we can reasonably expect to exercise. We do not have material obligations whereby we guarantee a residual value on assets we lease, nor do our lease agreements impose restrictions or covenants that could affect our ability to make distributions. Lease expense is recognized on the consolidated statements of operations as “Operating expenses” and “General and administrative” depending on the nature of the leased asset. Impairments of right-of-use assets are recognized in “Impairments” on the consolidated statements of operations. Sublease income is recognized as a reduction in “General and administrative” or as “Other income” depending on the nature of the subleased asset. The components of total lease expense are as follows (in millions): Year Ended December 31, 2022 2021 2020 Operating lease expense: Long-term operating lease expense $ 28.2 $ 21.7 $ 23.1 Short-term lease expense 34.3 17.5 22.1 Variable lease expense 18.8 15.6 11.8 Impairments — 0.2 6.8 Total lease expense, before sublease income 81.3 55.0 63.8 Sublease income (1.1) — — Total lease expense, net of sublease income $ 80.2 $ 55.0 $ 63.8 Impairments Right-of-Use Asset Impairment Analysis for the Year Ended December 31, 2021 During the fourth quarter of 2021, we entered into a sublease agreement for a portion of our Houston office that became effective in 2022. We evaluated the related right-of-use asset for impairment by comparing the estimated fair value of the right-of-use asset to its carrying value. The estimated fair value was calculated using a discounted cash flow analysis that utilized Level 3 inputs, which included future cash flows based on the terms of the sublease and a discount rate derived from market data. As the carrying value of the right-of-use asset exceeded the estimated fair value, we have recognized impairment expense of $0.2 million for the year ended December 31, 2021. Right-of-Use Asset Impairment Analysis for the Year Ended December 31, 2020 During the fourth quarter of 2020, we determined that we would cease using a portion of our Dallas, Houston, and Midland offices. We believed the terms of a sublease would be below our rental rates at the time and, therefore, evaluated the related right-of-use assets for impairment by comparing the estimated fair values of the right-of-use assets to their carrying values. Estimated fair values were calculated using a discounted cash flow analysis that utilized Level 3 inputs, which included estimated future cash flows and a discount rate derived from market data. As the carrying value of each right-of-use asset exceeded its estimated fair value, we recognized impairment expense of $6.8 million for the year ended December 31, 2020. Lease Maturities The following table summarizes the maturity of our lease liability as of December 31, 2022 (in millions): Total 2023 2024 2025 2026 2027 Thereafter Undiscounted operating lease liability $ 119.9 $ 29.2 $ 18.3 $ 12.9 $ 8.9 $ 8.1 $ 42.5 Reduction due to present value (27.5) (3.7) (3.1) (2.5) (2.0) (1.7) (14.5) Operating lease liability $ 92.4 $ 25.5 $ 15.2 $ 10.4 $ 6.9 $ 6.4 $ 28.0 |
Leases | (6) Leases The majority of our leases are for the following types of assets: • Office space. Our primary offices are in Dallas, Houston, and Midland, with smaller offices in other locations near our assets. Our office leases are long-term in nature and represent $46.2 million of our lease liability and $24.2 million of our right-of-use asset as of December 31, 2022. Our office leases represented $51.8 million of our lease liability and $27.9 million of our right-of-use asset as of December 31, 2021. These office leases typically include variable lease costs related to utility expenses, which are determined based on our pro-rata share of the building expenses each month and expensed as incurred. • Compression and other field equipment. We pay third parties to provide compressors or other field equipment for our assets. Under these agreements, a third party installs and operates compressor units based on specifications set by us to meet our compression needs at specific locations. While the third party determines which compressors to install and operates and maintains the units, we have the right to control the use of the compressors and are the sole economic beneficiary of the identified assets. These agreements are typically for an initial term of one • Land and land easements. We make periodic payments to lease land or to have access to our assets. Land leases and easements are typically long-term to match the expected useful life of the corresponding asset and represent $15.6 million of our lease liability and $12.3 million of our right-of-use asset as of December 31, 2022. Land and land easement leases represented $15.6 million of our lease liability and $12.6 million of our right-of-use asset as of December 31, 2021. • Other. Office equipment and other items did not represent any amounts related to our lease liability and our right-of-use asset as of December 31, 2022. We rented office equipment and other items that represented $0.1 million of our lease liability and $0.1 million of our right-of-use asset as of December 31, 2021. Lease balances are recorded on the consolidated balance sheets as follows (in millions): Operating leases: December 31, 2022 December 31, 2021 Other assets, net $ 69.5 $ 60.1 Other current liabilities $ 26.2 $ 18.1 Other long-term liabilities $ 66.2 $ 67.1 Other lease information Weighted-average remaining lease term—Operating leases 8.7 years 10.3 years Weighted-average discount rate—Operating leases 4.7 % 4.9 % Certain of our lease agreements have options to extend the lease for a certain period after the expiration of the initial term. We recognize the cost of a lease over the expected total term of the lease, including optional renewal periods that we can reasonably expect to exercise. We do not have material obligations whereby we guarantee a residual value on assets we lease, nor do our lease agreements impose restrictions or covenants that could affect our ability to make distributions. Lease expense is recognized on the consolidated statements of operations as “Operating expenses” and “General and administrative” depending on the nature of the leased asset. Impairments of right-of-use assets are recognized in “Impairments” on the consolidated statements of operations. Sublease income is recognized as a reduction in “General and administrative” or as “Other income” depending on the nature of the subleased asset. The components of total lease expense are as follows (in millions): Year Ended December 31, 2022 2021 2020 Operating lease expense: Long-term operating lease expense $ 28.2 $ 21.7 $ 23.1 Short-term lease expense 34.3 17.5 22.1 Variable lease expense 18.8 15.6 11.8 Impairments — 0.2 6.8 Total lease expense, before sublease income 81.3 55.0 63.8 Sublease income (1.1) — — Total lease expense, net of sublease income $ 80.2 $ 55.0 $ 63.8 Impairments Right-of-Use Asset Impairment Analysis for the Year Ended December 31, 2021 During the fourth quarter of 2021, we entered into a sublease agreement for a portion of our Houston office that became effective in 2022. We evaluated the related right-of-use asset for impairment by comparing the estimated fair value of the right-of-use asset to its carrying value. The estimated fair value was calculated using a discounted cash flow analysis that utilized Level 3 inputs, which included future cash flows based on the terms of the sublease and a discount rate derived from market data. As the carrying value of the right-of-use asset exceeded the estimated fair value, we have recognized impairment expense of $0.2 million for the year ended December 31, 2021. Right-of-Use Asset Impairment Analysis for the Year Ended December 31, 2020 During the fourth quarter of 2020, we determined that we would cease using a portion of our Dallas, Houston, and Midland offices. We believed the terms of a sublease would be below our rental rates at the time and, therefore, evaluated the related right-of-use assets for impairment by comparing the estimated fair values of the right-of-use assets to their carrying values. Estimated fair values were calculated using a discounted cash flow analysis that utilized Level 3 inputs, which included estimated future cash flows and a discount rate derived from market data. As the carrying value of each right-of-use asset exceeded its estimated fair value, we recognized impairment expense of $6.8 million for the year ended December 31, 2020. Lease Maturities The following table summarizes the maturity of our lease liability as of December 31, 2022 (in millions): Total 2023 2024 2025 2026 2027 Thereafter Undiscounted operating lease liability $ 119.9 $ 29.2 $ 18.3 $ 12.9 $ 8.9 $ 8.1 $ 42.5 Reduction due to present value (27.5) (3.7) (3.1) (2.5) (2.0) (1.7) (14.5) Operating lease liability $ 92.4 $ 25.5 $ 15.2 $ 10.4 $ 6.9 $ 6.4 $ 28.0 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (7) Long-Term Debt As of December 31, 2022 and 2021, long-term debt consisted of the following (in millions): December 31, 2022 December 31, 2021 Outstanding Principal Premium (Discount) Long-Term Debt Outstanding Principal Premium (Discount) Long-Term Debt Revolving Credit Facility due 2027 (1) $ 255.0 $ — $ 255.0 $ 15.0 $ — $ 15.0 AR Facility due 2025 (2) 500.0 — 500.0 350.0 — 350.0 ENLK’s 4.40% Senior unsecured notes due 2024 97.9 — 97.9 521.8 0.7 522.5 ENLK’s 4.15% Senior unsecured notes due 2025 421.6 (0.1) 421.5 720.8 (0.4) 720.4 ENLK’s 4.85% Senior unsecured notes due 2026 491.0 (0.2) 490.8 491.0 (0.3) 490.7 ENLC’s 5.625% Senior unsecured notes due 2028 500.0 — 500.0 500.0 — 500.0 ENLC’s 5.375% Senior unsecured notes due 2029 498.7 — 498.7 498.7 — 498.7 ENLC’s 6.50% Senior unsecured notes due 2030 700.0 — 700.0 — — — ENLK’s 5.60% Senior unsecured notes due 2044 350.0 (0.2) 349.8 350.0 (0.2) 349.8 ENLK’s 5.05% Senior unsecured notes due 2045 450.0 (5.2) 444.8 450.0 (5.5) 444.5 ENLK’s 5.45% Senior unsecured notes due 2047 500.0 (0.1) 499.9 500.0 (0.1) 499.9 Debt classified as long-term $ 4,764.2 $ (5.8) 4,758.4 $ 4,397.3 $ (5.8) 4,391.5 Debt issuance cost (3) (34.9) (27.8) Long-term debt, net of unamortized issuance cost $ 4,723.5 $ 4,363.7 ____________________________ (1) The effective interest rate was 6.5% and 3.9% at December 31, 2022 and 2021, respectively. (2) The effective interest rate was 5.3% and 1.2% at December 31, 2022 and 2021, respectively. (3) Net of accumulated amortization of $15.1 million and $18.4 million at December 31, 2022 and 2021, respectively. Maturities Maturities for the long-term debt as of December 31, 2022 are as follows (in millions): 2023 $ — 2024 97.9 2025 921.6 2026 491.0 2027 255.0 Thereafter 2,998.7 Subtotal 4,764.2 Less: net discount (5.8) Less: debt issuance cost (34.9) Long-term debt, net of unamortized issuance cost $ 4,723.5 Revolving Credit Facility On June 3, 2022, we amended and restated our prior revolving credit facility by entering into the Revolving Credit Facility. As a result, we recognized a $0.5 million loss on extinguishment of debt. The Revolving Credit Facility amended our prior revolving credit facility by, among other things, (i) decreasing the lenders’ commitments from $1.75 billion to $1.40 billion, (ii) modifying the leverage ratio financial covenant calculation to net from the funded indebtedness numerator the lesser of (a) consolidated unrestricted cash of ENLC and (b) $50.0 million, (iii) removing the consolidated interest coverage ratio financial covenant, (iv) extending the maturity date from January 25, 2024 to June 3, 2027, (v) replacing the ability of ENLC to elect that borrowings accrue interest at LIBOR, plus a margin, with the ability of ENLC to elect that borrowings accrue interest at a forward-looking term rate based on SOFR (“Term SOFR”), plus a margin and a Term SOFR spread adjustment, (vi) increasing the size of a permitted receivables financing to $500.0 million from $350.0 million, and (vii) permitting, but not requiring, the establishment by ENLC (subject to approval by Bank of America, N.A., as administrative agent, and lenders holding a majority of the revolving commitments) of specified key performance indicators with respect to environmental, social, and/or governance targets that may result in a pricing increase or decrease under the Revolving Credit Facility of up to 0.05% per annum for the margin on borrowings and letters of credit and 0.02% per annum for the commitment fees. The Revolving Credit Facility will mature on June 3, 2027, unless ENLC requests, and the requisite lenders agree, to extend it pursuant to its terms. The Revolving Credit Facility contains certain financial, operational, and legal covenants. The financial covenant is tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. The financial covenant requires ENLC to maintain a ratio of consolidated net indebtedness to consolidated EBITDA of no more than 5.0 to 1.0. Under the terms of the Revolving Credit Facility, if we consummate an acquisition in which the aggregate purchase price is $50.0 million or more, we can elect to increase the maximum allowed ratio of consolidated net indebtedness to consolidated EBITDA to 5.5 to 1.0 for the quarter in which the acquisition occurs and the three subsequent quarters. In December 2022, we completed the Central Oklahoma Acquisition with an aggregate purchase price in excess of $50.0 million and elected to increase the maximum allowed ratio of consolidated net indebtedness to consolidated EBITDA to 5.5 to 1.0 through the third quarter of 2023. Borrowings under the Revolving Credit Facility bear interest at ENLC’s option at Term SOFR plus a Term SOFR spread adjustment of 0.10% per annum (“Adjusted Term SOFR”) and an applicable margin (ranging from 1.125% to 2.00%) or the Base Rate (the highest of the federal funds rate plus 0.50%, one-month Adjusted Term SOFR plus 1.0% or the administrative agent’s prime rate) plus an applicable margin (ranging from 0.125% to 1.00%). The applicable margins vary depending on ENLC’s debt rating. Upon breach by ENLC of certain covenants governing the Revolving Credit Facility, amounts outstanding under the Revolving Credit Facility, if any, may become due and payable immediately. ENLK is a guarantor under the Revolving Credit Facility. In the event that ENLC’s obligations under the Revolving Credit Facility are accelerated due to a default, ENLK will be liable for the entire outstanding balance and 105% of the outstanding letters of credit under the Revolving Credit Facility. There were $255.0 million in outstanding borrowings under the Revolving Credit Facility and $43.6 million outstanding letters of credit as of December 31, 2022. At December 31, 2022, we were in compliance with and expect to be in compliance with the financial covenants of the Revolving Credit Facility for at least the next twelve months. AR Facility On October 21, 2020, the SPV entered into the AR Facility. In connection with the AR Facility, certain subsidiaries of ENLC sold and contributed, and will continue to sell or contribute, their accounts receivable to the SPV to be held as collateral for borrowings under the AR Facility. The SPV’s assets are not available to satisfy the obligations of ENLC or any of its affiliates. On February 26, 2021, the SPV entered into the first amendment to the AR Facility that, among other things: (i) increased the AR Facility limit and lender commitments by $50.0 million to $300.0 million, (ii) reduced the Adjusted LIBOR and LMIR (each as defined in the AR Facility) minimum floor to zero, rather than the previous 0.375%, and (iii) reduced the effective drawn fee to 1.25% rather than the previous 1.625%. On September 24, 2021, the SPV entered into the second amendment to the AR Facility that, among other things: (i) increased the AR Facility limit and lender commitments by $50.0 million to $350.0 million, (ii) extended the scheduled termination date of the facility from October 20, 2023 to September 24, 2024, and (iii) reduced the effective drawn fee to 1.10% rather than the previous 1.25%. On August 1, 2022, the SPV amended certain terms of the AR Facility to, among other things, (i) increase the commitments thereunder from $350.0 million to $500.0 million (ii) extend the scheduled termination date from September 24, 2024 to August 1, 2025, unless extended or earlier terminated in accordance with its terms, and (iii) reduce the effective draw down fee to 0.90% rather than the previous effective 1.10%. As of December 31, 2022, the AR Facility had a borrowing base of $500.0 million and there were $500.0 million in outstanding borrowings under the AR Facility. Since our investment in the SPV is not sufficient to finance its activities without additional support from us, the SPV is a variable interest entity. We are the primary beneficiary of the SPV because we have the power to direct the activities that most significantly affect its economic performance and we are obligated to absorb its losses or receive its benefits from operations. Since we are the primary beneficiary of the SPV, we consolidate its assets and liabilities, which consist primarily of billed and unbilled accounts receivable of $678.5 million and long-term debt of $500.0 million as of December 31, 2022. The amount available for borrowings at any one time under the AR Facility is limited to a borrowing base amount calculated based on the outstanding balance of eligible receivables held as collateral, subject to certain reserves, concentration limits, and other limitations. Borrowings under the AR Facility bear interest at the applicable SOFR plus a credit spread adjustment of 0.10%, plus a drawn fee in the amount of 0.90% at December 31, 2022. The SPV also pays a fee on the undrawn committed amount of the AR Facility. Interest and fees payable by the SPV under the AR Facility are due monthly. The AR Facility is scheduled to terminate on August 1, 2025, unless extended or earlier terminated in accordance with its terms, at which time no further advances will be available and the obligations under the AR Facility must be repaid in full by no later than (i) the date that is ninety (90) days following such date or (ii) such earlier date on which the loans under the AR Facility become due and payable. The AR Facility includes covenants, indemnification provisions, and events of default, including those providing for termination of the AR Facility and the acceleration of amounts owed by the SPV under the AR Facility if, among other things, a borrowing base deficiency exists, there is an event of default under the Revolving Credit Facility or certain other indebtedness, certain events negatively affecting the overall credit quality of the receivables held as collateral occur, a change of control occurs, or if the net consolidated leverage ratio of ENLC exceeds limits identical to those in the Revolving Credit Facility. At December 31, 2022, we were in compliance with and expect to be in compliance with the financial covenants of the AR Facility for at least the next twelve months. Senior Unsecured Notes Redemption Provisions Each issuance of the senior unsecured notes may be fully or partially redeemed prior to an early redemption date (see “Early Redemption Date” in table below) at a redemption price equal to the greater of: (i) 100% of the principal amount of the notes to be redeemed; or (ii) the sum of the remaining scheduled payments of principal and interest on the respective notes to be redeemed that would be due after the related redemption date but for such redemption (exclusive of interest accrued to, but excluding the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus a specified basis point premium (see “Basis Point Premium” in the table below); plus accrued and unpaid interest to, but excluding, the redemption date. At any time on or after the Early Redemption Date, the senior unsecured notes may be fully or partially redeemed at a redemption price equal to 100% of the principal amount of the applicable notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. See applicable redemption provision terms below: Issuance Maturity Date of Notes Early Redemption Date Basis Point Premium 2024 Notes April 1, 2024 Prior to January 1, 2024 25 Basis Points 2025 Notes June 1, 2025 Prior to March 1, 2025 30 Basis Points 2026 Notes July 15, 2026 Prior to April 15, 2026 50 Basis Points 2028 Notes January 15, 2028 Prior to July 15, 2027 50 Basis Points 2029 Notes June 1, 2029 Prior to March 1, 2029 50 Basis Points 2030 Notes September 1, 2030 Prior to March 1, 2030 50 Basis Points 2044 Notes April 1, 2044 Prior to October 1, 2043 30 Basis Points 2045 Notes April 1, 2045 Prior to October 1, 2044 30 Basis Points 2047 Notes June 1, 2047 Prior to December 1, 2046 40 Basis Points Senior Unsecured Notes Indentures The indentures governing the senior unsecured notes contain covenants that, among other things, limit ENLC’s and ENLK’s ability to create or incur certain liens or consolidate, merge, or transfer all or substantially all of ENLC’s and ENLK’s assets. The indentures governing the 2028 Notes and the 2030 Notes provide that if a Change of Control Triggering Event (as defined in the indenture) occurs, ENLC must offer to repurchase the 2028 Notes and the 2030 Notes at a price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest to, but excluding, the date of repurchase. Each of the following is an event of default under the indentures: • failure to pay any principal or interest when due; • failure to observe any other agreement, obligation, or other covenant in the indenture, subject to the cure periods for certain failures; and • bankruptcy or other insolvency events involving ENLC and ENLK. If an event of default relating to bankruptcy or other insolvency events occurs, the senior unsecured notes will immediately become due and payable. If any other event of default exists under the indenture, the trustee under the indenture or the holders of the senior unsecured notes may accelerate the maturity of the senior unsecured notes and exercise other rights and remedies. At December 31, 2022, ENLC and ENLK were in compliance and expect to be in compliance with the covenants in the senior unsecured notes for at least the next twelve months. All interest payments for senior unsecured notes are due semi-annually, in arrears. Issuances and Repurchases of Senior Unsecured Notes On December 14, 2020, ENLC issued $500.0 million in aggregate principal amount of ENLC’s 5.625% senior unsecured notes due January 15, 2028 (the “2028 Notes”) at a price to the public of 100% of their face value. Interest payments on the 2028 Notes are payable on January 15 and July 15 of each year. The 2028 Notes are fully and unconditionally guaranteed by ENLK. Net proceeds of approximately $494.7 million were used to repay a portion of the borrowings under the Term Loan, which matured in December 2021. On August 31, 2022, ENLC completed the sale of $700.0 million in aggregate principal amount of ENLC’s 6.50% senior unsecured notes due September 1, 2030 (the “2030 Notes”) at 100% of their face value. Interest on the 2030 Notes will be payable on March 1 and September 1 of each year beginning on March 1, 2023, until their maturity on September 1, 2030. The 2030 Notes are fully and unconditionally guaranteed by ENLK. We used the net proceeds of approximately $693.0 million and available cash to settle ENLK’s debt tender offer to repurchase $700.0 million in aggregate principal amount of its senior unsecured notes. The repurchased notes consisted of $404.4 million of outstanding aggregate principal amount of ENLK’s 4.40% senior unsecured notes due 2024 (the “2024 Notes”) and $295.6 million of outstanding aggregate principal amount of ENLK’s 4.15% senior unsecured notes due 2025 (the “2025 Notes”). Total consideration for the repurchased 2024 Notes and the 2025 Notes was $705.3 million, including $21.0 million of debt tender premium and $15.7 million of discount. Activity related to the repurchases of ENLK’s senior unsecured notes from the settled debt tender offer consisted of the following (in millions): Year Ended Debt repurchased $ 700.0 Aggregate payments (705.3) Net discount on repurchased debt (1.0) Loss on extinguishment of debt $ (6.3) Additionally, for the year ended December 31, 2022, and prior to the tender offer, we repurchased a portion of the outstanding 2024 Notes and 2025 Notes in open market transactions. For the year ended December 31, 2020, we repurchased a portion of the 2024, 2025, 2026, and 2029 Notes in open market transactions. We did not repurchase any senior unsecured notes in open market transactions during the year ended December 31, 2021. Activity related to the repurchases of our senior unsecured notes in open market transactions consisted of the following (in millions): Year Ended Year Ended Debt repurchased $ 23.1 $ 67.7 Aggregate payments (22.5) (36.0) Net discount on repurchased debt — (0.3) Accrued interest on repurchased debt — 0.6 Gain on extinguishment of debt $ 0.6 $ 32.0 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) Income Taxes The components of our income tax benefit (expense) are as follows (in millions): Year Ended December 31, 2022 2021 2020 Current income tax expense $ (0.4) $ (0.8) $ (1.1) Deferred tax benefit (expense) 95.3 (24.6) (142.1) Total income tax benefit (expense) $ 94.9 $ (25.4) $ (143.2) The following schedule reconciles income tax benefit (expense) and the amount calculated by applying the statutory U.S. federal tax rate to income (loss) before non-controlling interest and income taxes (in millions): Year Ended December 31, 2022 2021 2020 Expected income tax benefit (expense) based on federal statutory tax rate $ (55.9) $ (10.0) $ 58.5 State income tax benefit (expense), net of federal benefit (7.0) (1.4) 6.5 Unit-based compensation (1) 0.7 (3.1) (6.0) Non-deductible expense related to impairments — — (43.4) Statutory rate changes (2) — (10.2) — Change in valuation allowance 151.6 1.7 (153.3) Other 5.5 (2.4) (5.5) Total income tax benefit (expense) $ 94.9 $ (25.4) $ (143.2) ____________________________ (1) Related to book-to-tax differences recorded upon the vesting of unit-based awards. (2) Effective January 1, 2022, Oklahoma House Bill 2960 resulted in a change in the corporate income tax rate from 6% to 4% and Louisiana Senate Bill No. 159 resulted in a change in the corporate income tax rate from 8% to 7.5%. Accordingly, we recorded deferred tax expense related to our Oklahoma and Louisiana operations in the amount of $7.6 million and $2.6 million, respectively, for the year ended December 31, 2021 due to a remeasurement of deferred tax assets. Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred tax liabilities, net of deferred tax assets, are included in “Deferred tax liability, net” in the consolidated balance sheets. Our deferred income tax assets and liabilities as of December 31, 2022 and 2021 are as follows (in millions): December 31, 2022 December 31, 2021 Deferred income tax assets: Federal net operating loss carryforward $ 636.5 $ 573.6 State net operating loss carryforward 77.6 59.6 Total deferred tax assets, gross 714.1 633.2 Valuation allowance — (151.6) Total deferred tax assets, net of valuation allowance 714.1 481.6 Deferred tax liabilities: Property, plant, equipment, and intangible assets (1) (816.8) (619.1) Interest deduction limitation (2) 57.6 — Other 2.4 — Total deferred tax liabilities (756.8) (619.1) Deferred tax liability, net $ (42.7) $ (137.5) ____________________________ (1) Includes our investment in ENLK and primarily relates to differences between the book and tax bases of property and equipment . (2) Related to book-to-tax differences between the allowable interest deduction amount under Section 163j of the Internal Revenue Code of 1986, as amended. As of December 31, 2022, we had federal net operating loss (“NOL”) carryforwards of $3.0 billion that represent a net deferred tax asset of $636.5 million. As of December 31, 2022, we had state NOL carryforwards of $1.6 billion that represent a net deferred tax asset of $77.6 million. A portion of these carryforwards will begin expiring in 2028 through 2040. Federal NOLs incurred in 2018 and in future years (approximately $2.8 billion of our federal NOL carryforwards) may be carried forward indefinitely, but the deductibility of such federal NOLs is limited, while federal NOLs incurred prior to 2018 (approximately $0.2 billion of our NOL carryforwards) may be carried forward for only twenty years, but the deductibility of such NOL carryforwards generally is not limited unless we were to undergo a Section 382 “ownership change.” We provide a valuation allowance, if necessary, to reduce deferred tax assets, if all, or some portion, of such assets will more than likely not be realized. We continually review the realizability of our deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. We assessed whether a valuation allowance should be recorded against our deferred tax assets based on consideration of all available evidence, using a “more likely than not” standard. In assessing the need for a valuation allowance, we considered both positive and negative evidence related to the likelihood of realization of deferred tax assets. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Future sources of taxable income were also considered in determining the amount of the recorded valuation allowance. Based on our review of this evidence, we established a valuation allowance of $153.3 million as of December 31, 2020, primarily related to federal and state tax operating loss carryforwards for which we did not believe a tax benefit was more likely than not to be realized. For the year ended December 31, 2021, we recorded a $1.7 million net reduction in the valuation allowance as a result of the remeasurement of the state deferred tax assets and liabilities from the statutory rate changes. For the year ended December 31, 2022, we further reduced the valuation allowance by $151.6 million as a result of improved current and expected future operating income. As of December 31, 2022, management believes it is more likely than not that the Company will realize the benefits of the deferred tax assets. |
Certain Provisions of the Partn
Certain Provisions of the Partnership Agreement | 12 Months Ended |
Dec. 31, 2022 | |
Partners' Capital [Abstract] | |
Certain Provisions of the Partnership Agreement | (9) Certain Provisions of the Partnership Agreement (a) Series B Preferred Units Issuance and Ownership In January 2016, ENLK issued an aggregate of 50,000,000 Series B Preferred Units representing ENLK limited partner interests to Enfield in a private placement for a cash purchase price of $15.00 per Series B Preferred Unit (the “Issue Price”). On August 4, 2021, Enfield Holdings, L.P. (“Enfield”) sold all of its Series B Preferred Units and ENLC Class C Common Units representing limited liability company interests in ENLC to Brookfield Infrastructure Partners L.P. and funds managed by Oaktree Capital Management, L.P. Redemptions In January 2022 and December 2021, we redeemed 3,333,334 and 3,300,330 Series B Preferred Units for total consideration of $50.5 million and $50.0 million plus accrued distributions, respectively. In addition, upon each such redemption, a corresponding number of ENLC Class C Common Units were automatically cancelled. The redemption price in each redemption represents 101% of the preferred units’ par value. In connection with the Series B Preferred Unit redemption, we have agreed with the holders of the Series B Preferred Units that we will pay cash in lieu of making a quarterly distribution in-kind of additional Series B Preferred Units (the “PIK Distribution”) through the distribution declared for the fourth quarter of 2022. Conversion and Distributions Series B Preferred Units are exchangeable for ENLC common units in an amount equal to the number of outstanding Series B Preferred Units outstanding multiplied by the exchange ratio of 1.15, subject to certain adjustments (the “Series B Exchange Ratio”). The exchange is subject to ENLK’s option to pay cash instead of issuing additional ENLC common units, and can occur in whole or in part at the option of the holder of the Series B Preferred Units at any time, or in whole at our option, provided the daily volume-weighted average closing price of the ENLC common units for the 30 trading days ending two The holder of the Series B Preferred Units is entitled to quarterly cash distributions and distributions in-kind of additional Series B Preferred Units. The PIK Distribution equals the greater of (A) 0.0025 Series B Preferred Units per Series B Preferred Unit and (B) the number of Series B Preferred Units equal to the quotient of (x) the excess (if any) of (1) the distribution that would have been payable by ENLC had the Series B Preferred Units been exchanged for ENLC common units but applying a one-to-one exchange ratio (subject to certain adjustments) instead of the Series B Exchange Ratio, over (2) $0.28125 per Series B Preferred Unit (the “Cash Distribution Component”), divided by (y) the Issue Price. Except as described above with respect to distributions made until the distribution declared for the fourth quarter of 2022, the quarterly cash distribution (the “Series B Cash Distribution”) consists of the Cash Distribution Component plus an amount in cash that will be determined based on a comparison of the value (applying the Issue Price) of (i) the PIK Distribution and (ii) the Series B Preferred Units that would have been distributed in the PIK Distribution if such calculation applied the Series B Exchange Ratio instead of the one-to-one ratio (subject to certain adjustments). Income is allocated to the Series B Preferred Units in an amount equal to the quarterly distribution with respect to the period earned. A summary of the distribution activity relating to the Series B Preferred Units during the years ended December 31, 2022, 2021, and 2020 is provided below: Declaration period Distribution Cash distribution Date paid/payable 2022 First Quarter of 2022 — $ 17.5 May 13, 2022 (2) Second Quarter of 2022 — $ 17.3 August 12, 2022 Third Quarter of 2022 — $ 17.3 November 14, 2022 Fourth Quarter of 2022 — $ 17.3 February 13, 2023 2021 First Quarter of 2021 150,871 $ 17.0 May 14, 2021 Second Quarter of 2021 151,248 $ 17.0 August 13, 2021 Third Quarter of 2021 151,626 $ 17.1 November 12, 2021 Fourth Quarter of 2021 — $ 19.2 February 11, 2022 (1) 2020 First Quarter of 2020 149,371 $ 16.8 May 13, 2020 Second Quarter of 2020 149,745 $ 16.8 August 13, 2020 Third Quarter of 2020 150,119 $ 16.9 November 13, 2020 Fourth Quarter of 2020 150,494 $ 16.9 February 12, 2021 ____________________________ (1) In December 2021 and January 2022, we paid $0.9 million and $1.0 million, respectively, of accrued distributions related to the fourth quarter of 2021 on redeemed Series B Preferred Units. The remaining distribution of $17.3 million related to the fourth quarter of 2021 was paid on February 11, 2022. (2) In January 2022, we paid $0.3 million of accrued distributions related to the first quarter of 2022 on redeemed Series B Preferred Units. The remaining distribution of $17.2 million related to the first quarter of 2022 was paid on May 13, 2022. (b) Series C Preferred Units In September 2017, ENLK issued 400,000 Series C Preferred Units representing ENLK limited partner interests at a price to the public of $1,000 per unit. The Series C Preferred Units represent perpetual equity interests in ENLK and, unlike ENLK’s indebtedness, will not give rise to a claim for payment of a principal amount at a particular date. As to the payment of distributions and amounts payable on a liquidation event, the Series C Preferred Units rank senior to ENLK’s common units and to each other class of limited partner interests or other equity securities established after the issue date of the Series C Preferred Units that is not expressly made senior or on parity with the Series C Preferred Units. The Series C Preferred Units rank junior to the Series B Preferred Units with respect to the payment of distributions, and junior to the Series B Preferred Units and all current and future indebtedness with respect to amounts payable upon a liquidation event. At any time on or after December 15, 2022, ENLK may redeem, at ENLK’s option, in whole or in part, the Series C Preferred Units at a redemption price in cash equal to $1,000 per Series C Preferred Unit plus an amount equal to all accumulated and unpaid distributions, whether or not declared. ENLK may undertake multiple partial redemptions. In addition, at any time within 120 days after the conclusion of any review or appeal process instituted by ENLK following certain rating agency events, ENLK may redeem, at ENLK’s option, the Series C Preferred Units in whole at a redemption price in cash per unit equal to $1,020 plus an amount equal to all accumulated and unpaid distributions, whether or not declared. Repurchase In October 2022, we repurchased 19,000 Series C Preferred Units for total consideration of $15.2 million. The repurchase price represented 80% of the preferred units’ par value. Distributions Distributions on the Series C Preferred Units accrued and were cumulative from the date of original issue and payable semi-annually in arrears on the 15th day of June and December of each year through and including December 15, 2022 and, thereafter, accrue quarterly in arrears on the 15th day of March, June, September, and December of each year, in each case, if and when declared by the General Partner out of legally available funds for such purpose. The initial distribution rate for the Series C Preferred Units from and including the date of original issue to, but not including, December 15, 2022 was 6.0% per annum. On and after December 15, 2022, distributions on the Series C Preferred Units will accumulate for each distribution period at a percentage of the $1,000 liquidation preference per unit equal to an annual floating rate of the three-month LIBOR plus a spread of 4.11%. Income is allocated to the Series C Preferred Units in an amount equal to the earned distribution for the respective reporting period. For the year ended December 31, 2022, ENLK made distributions of $23.4 million to the holders of Series C Preferred Units and for each of the years ended December 31, 2021 and 2020, ENLK made distributions of $24.0 million to the holders of Series C Preferred Units. For the distribution period related to December 15, 2022 through March 14, 2023, the distribution rate per unit is 8.8463%, which is comprised of the three-month LIBOR rate of 4.7363% plus a spread of 4.11%. The distribution of $8.4 million is payable on March 15, 2023 to the holders of Series C Preferred Units. |
Members' Equity
Members' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Members' Equity | (10) Members’ Equity (a) Common Unit Repurchase Program During 2022, the Board authorized a common unit repurchase program of up to $200.0 million, including repurchases of common units held by GIP. In December, 2022, the Board reauthorized our common unit repurchase program for 2023 and set the amount available for repurchases of outstanding common units during 2023 at up to $200.0 million. Repurchases under the common unit repurchase program will be made, in accordance with applicable securities laws, from time to time in open market or private transactions and may be made pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act. The repurchases will depend on market conditions and may be discontinued at any time. On February 15, 2022, we and GIP entered into an agreement pursuant to which we agreed to repurchase, on a quarterly basis, a pro rata portion of the ENLC common units held by GIP, based upon the number of common units purchased by us during the applicable quarter from public unitholders under our common unit repurchase program. The repurchase agreement was scheduled to terminate as of December 31, 2022 in accordance with its terms. On December 20, 2022, we renewed the repurchase agreement with GIP for 2023 (the “Repurchase Agreement Renewal”) on terms substantially similar to those of the repurchase agreement entered into by the Company and GIP on February 15, 2022. See “Note 5—Related Party Transactions” for additional information on our ENLC common unit repurchase agreement with GIP. The following table summarizes our ENLC common unit repurchase activity for the periods presented (in millions, except for unit amounts): Year Ended December 31, 2022 2021 2020 Publicly held ENLC common units 11,630,351 6,091,001 383,614 ENLC common units held by GIP (1) 6,743,703 — — Total ENLC common units 18,374,054 6,091,001 383,614 Aggregate cost for publicly held ENLC common units $ 111.5 $ 40.1 $ 1.2 Aggregate cost for ENLC common units held by GIP 63.5 — — Total aggregate cost for ENLC common units $ 175.0 $ 40.1 $ 1.2 Average price paid per publicly held ENLC common unit $ 9.59 $ 6.59 $ 3.02 Average price paid per ENLC common unit held by GIP (2) $ 9.42 $ — $ — ____________________________ (1) For the year ended December 31, 2022, the units represent GIP’s pro rata share of the aggregate number of common units repurchased by us under our common unit repurchase program during the period from February 15, 2022 (the date on which the repurchase agreement with GIP was signed) through December 31, 2022. (2) For the year ended December 31, 2022, the per unit price we paid to GIP was the average per unit price paid by us for publicly held ENLC common units repurchased during the period from February 15, 2022 (the date on which the repurchase agreement with GIP was signed) through December 31, 2022, less broker commissions, which were not paid with respect to GIP units. Additionally, on February 13, 2023, we repurchased 2,237,110 ENLC common units held by GIP at an aggregate cost of $24.6 million, or an average of $11.01 per common unit. These units represent GIP’s pro rata share of the aggregate number of common units repurchased by us during the three months ended December 31, 2022. The per unit price we paid to GIP was the same as the average per unit price paid by us for publicly held ENLC common units repurchased during the same period, less broker commissions, which were not paid with respect to the GIP units. (b) Earnings Per Unit and Dilution Computations As required under ASC 260, Earnings Per Share , unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities for earnings per unit calculations. The following table reflects the computation of basic and diluted earnings per unit for the periods presented (in millions, except per unit amounts): Year Ended December 31, 2022 2021 2020 Distributed earnings allocated to: Common units (1) $ 221.3 $ 192.5 $ 183.5 Unvested restricted units (1) 5.2 4.5 3.1 Total distributed earnings $ 226.5 $ 197.0 $ 186.6 Undistributed income (loss) allocated to: Common units $ 131.7 $ (170.6) $ (598.4) Unvested restricted units 3.1 (4.0) (9.7) Total undistributed income (loss) $ 134.8 $ (174.6) $ (608.1) Net income (loss) attributable to ENLC allocated to: Common units $ 353.0 $ 21.9 $ (414.9) Unvested restricted units 8.3 0.5 (6.6) Total net income (loss) attributable to ENLC $ 361.3 $ 22.4 $ (421.5) Net income (loss) attributable to ENLC per unit: Basic $ 0.76 $ 0.05 $ (0.86) Diluted $ 0.74 $ 0.05 $ (0.86) ____________________________ (1) Represents distribution activity consistent with the distribution activity table below. The following are the unit amounts used to compute the basic and diluted earnings per unit for the periods presented (in millions): Year Ended December 31, 2022 2021 2020 Basic weighted average units outstanding: Weighted average common units outstanding 478.5 488.8 489.3 Diluted weighted average units outstanding: Weighted average basic common units outstanding 478.5 488.8 489.3 Dilutive effect of unvested restricted units (1) 6.8 5.5 — Total weighted average diluted common units outstanding 485.3 494.3 489.3 ____________________________ (1) For the year ended December 31, 2020, all common unit equivalents were antidilutive because a net loss existed for that period. All outstanding units were included in the computation of diluted earnings per unit and weighted based on the number of days such units were outstanding during the period presented. (c) Distributions A summary of our distribution activity related to the ENLC common units for the years ended December 31, 2022, 2021, and 2020, respectively, is provided below: Declaration period Distribution/unit Date paid/payable 2022 First Quarter of 2022 $ 0.11250 May 13, 2022 Second Quarter of 2022 $ 0.11250 August 12, 2022 Third Quarter of 2022 $ 0.11250 November 14, 2022 Fourth Quarter of 2022 $ 0.12500 February 13, 2023 2021 First Quarter of 2021 $ 0.09375 May 14, 2021 Second Quarter of 2021 $ 0.09375 August 13, 2021 Third Quarter of 2021 $ 0.09375 November 12, 2021 Fourth Quarter of 2021 $ 0.11250 February 11, 2022 2020 First Quarter of 2020 $ 0.09375 May 13, 2020 Second Quarter of 2020 $ 0.09375 August 13, 2020 Third Quarter of 2020 $ 0.09375 November 13, 2020 Fourth Quarter of 2020 $ 0.09375 February 12, 2021 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliates | (11) Investment in Unconsolidated Affiliates As of December 31, 2022, our unconsolidated investments consisted of a 38.75% ownership in GCF, a 30% ownership in the Cedar Cove JV, and a 15% ownership in the Matterhorn JV. The following table shows the activity related to our investment in unconsolidated affiliates for the periods indicated (in millions): Year Ended December 31, 2022 2021 2020 GCF Contributions $ 1.5 $ — $ — Distributions $ — $ (3.5) $ (1.6) Equity in income (loss) $ (3.2) $ (9.1) $ 3.0 Cedar Cove JV Distributions $ (0.7) $ (0.4) $ (0.5) Equity in loss $ (1.9) $ (2.4) $ (2.4) Matterhorn JV Contributions $ 64.4 $ — $ — Equity in loss $ (0.5) $ — $ — Total Contributions $ 65.9 $ — $ — Distributions $ (0.7) $ (3.9) $ (2.1) Equity in income (loss) $ (5.6) $ (11.5) $ 0.6 The following table shows the balances related to our investment in unconsolidated affiliates as of December 31, 2022 and 2021 (in millions): December 31, 2022 December 31, 2021 GCF $ 26.3 $ 28.0 Cedar Cove JV (1) (4.4) (1.8) Matterhorn JV 63.9 — Total investment in unconsolidated affiliates $ 85.8 $ 26.2 ___________________________ |
Employee Incentive Plans
Employee Incentive Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Incentive Plans | (12) Employee Incentive Plans (a) Long-Term Incentive Plans We account for unit-based compensation in accordance with ASC 718, which requires that compensation related to all unit-based awards be recognized in the consolidated financial statements. Unit-based compensation cost is valued at fair value at the date of grant, and that grant date fair value is recognized as expense over each award’s requisite service period with a corresponding increase to equity or liability based on the terms of each award and the appropriate accounting treatment under ASC 718. Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions): Year Ended December 31, 2022 2021 2020 Cost of unit-based compensation charged to operating expense $ 5.7 $ 6.6 $ 7.1 Cost of unit-based compensation charged to general and administrative expense 24.7 18.7 21.3 Total unit-based compensation expense $ 30.4 $ 25.3 $ 28.4 Amount of related income tax benefit recognized in net income (loss) (1) $ 7.1 $ 5.9 $ 6.7 ____________________________ (1) For the years ended December 31, 2022, 2021, and 2020 the amount of related income tax benefit recognized in net income (loss) excluded $0.7 million of income tax benefit and $3.1 million, and $6.0 million of income tax expense, respectively, related to book-to-tax differences recorded upon the vesting of restricted units. (b) Restricted Incentive Units The restricted incentive units were valued at their fair value at the date of grant, which is equal to the market value of ENLC common units on such date. A summary of the restricted incentive unit activity for the year ended December 31, 2022 is provided below: Year Ended December 31, 2022 Restricted Incentive Units: Number of Units Weighted Average Grant-Date Fair Value Unvested, beginning of period 7,507,471 $ 5.46 Granted (1) 2,461,950 8.83 Vested (1)(2) (2,615,805) 7.28 Forfeited (578,430) 6.53 Unvested, end of period 6,775,186 $ 5.89 Aggregate intrinsic value, end of period (in millions) $ 83.3 ____________________________ (1) Restricted incentive units typically vest at the end of three years. In March 2022, we granted 193,935 restricted incentive units with a fair value of $1.7 million. These restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. (2) Vested units included 863,909 ENLC common units withheld for payroll taxes paid on behalf of employees. A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2022, 2021, and 2020 is provided below (in millions): Year Ended December 31, Restricted Incentive Units: 2022 2021 2020 Aggregate intrinsic value of units vested $ 24.4 $ 5.6 $ 12.1 Fair value of units vested $ 19.0 $ 16.3 $ 31.5 As of December 31, 2022, there were $15.3 million of unrecognized compensation costs that related to unvested restricted incentive units. These costs are expected to be recognized over a weighted average period of 1.8 years. For restricted incentive unit awards granted to certain officers and employees (the “grantee”), such awards (the “Subject Grants”) generally provide that, subject to the satisfaction of the conditions set forth in the agreement, the Subject Grants will vest on the third anniversary of the vesting commencement date (the “Regular Vesting Date”). The Subject Grants will be forfeited if the grantee’s employment or service with ENLC and its affiliates terminates prior to the Regular Vesting Date except that the Subject Grants will vest in full or on a pro-rated basis for certain terminations of employment or service prior to the Regular Vesting Date. For instance, the Subject Grants will vest on a pro-rated basis for any terminations of the grantee’s employment: (i) due to retirement, (ii) by ENLC or its affiliates without cause, or (iii) by the grantee for good reason (each, a “Covered Termination” and more particularly defined in the Subject Grants agreement) except that the Subject Grants will vest in full if the applicable Covered Termination is a “normal retirement” (as defined in the Subject Grants agreement) or the applicable Covered Termination occurs after a change of control (if any). The Subject Grants will vest in full if death or a qualifying disability occurs prior to the Regular Vesting Date. (c) Performance Units We grant performance awards under the 2014 Plan. The performance award agreements provide that the vesting of performance units (i.e., performance-based restricted incentive units) granted thereunder is dependent on the achievement of certain performance goals over the applicable performance period. At the end of the vesting period, recipients receive distribution equivalents, if any, with respect to the number of performance units vested. The vesting of such units ranges from zero to 200% of the units granted depending on the extent to which the related performance goals are achieved over the relevant performance period. Performance Unit Awards Vesting The vesting of performance units is dependent on (a) the grantee’s continued employment or service with ENLC or its affiliates for all relevant periods and (b) the TSR performance of ENLC (the “ENLC TSR”) and a performance goal based on cash flow (“Cash Flow”). At the time of grant, the Board of Directors of the Managing Member (the “Board”) will determine the relative weighting of the two performance goals by including in the award agreement the number of units that will be eligible for vesting depending on the achievement of the TSR performance goals (the “Total TSR Units”) versus the achievement of the Cash Flow performance goals (the “Total CF Units”). These performance awards have four separate performance periods: (i) three performance periods are each of the first, second, and third calendar years that occur following the vesting commencement date of the performance awards and (ii) the fourth performance period is the cumulative three-year period from the vesting commencement date through the third anniversary thereof (the “Cumulative Performance Period”). One-fourth of the Total TSR Units (the “Tranche TSR Units”) relates to each of the four performance periods described above. Following the end date of a given performance period, the Governance and Compensation Committee (the “Committee”) of the Board will measure and determine the ENLC TSR relative to the TSR performance of a designated group of peer companies (the “Designated Peer Companies”) to determine the Tranche TSR Units that are eligible to vest, subject to the grantee’s continued employment or service with ENLC or its affiliates through the end date of the Cumulative Performance Period. In short, the TSR for a given performance period is defined as (i)(A) the average closing price of a common equity security at the end of the relevant performance period minus (B) the average closing price of a common equity security at the beginning of the relevant performance period plus (C) reinvested dividends divided by (ii) the average closing price of a common equity security at the beginning of the relevant performance period. The following table sets out the levels at which the Tranche TSR Units may vest (using linear interpolation) based on the ENLC TSR percentile ranking for the applicable performance period relative to the TSR achievement of the Designated Peer Companies: Performance Level Achieved ENLC TSR Vesting percentage Below Threshold Less than 25% 0% Threshold Equal to 25% 50% Target Equal to 50% 100% Maximum Greater than or Equal to 75% 200% Approximately one-third of the Total CF Units (the “Tranche CF Units”) relates to each of the first three performance periods described above (i.e., the Cash Flow performance goal does not relate to the Cumulative Performance Period). The Board will establish the Cash Flow performance targets for purposes of the column in the table below titled “ENLC’s Achieved Cash Flow” for each performance period no later than March 31 of the year in which the relevant performance period begins. Following the end date of a given performance period, the Committee will measure and determine the Cash Flow performance of ENLC to determine the Tranche CF Units that are eligible to vest, subject to the grantee’s continued employment or service with ENLC or its affiliates through the end of the Cumulative Performance Period. In 2021, the Board adopted the metric free cash flow after distributions (“FCFAD”) as the cash flow performance goal in the Performance-Based Award Agreement rather than the previously used distributable cash flow per unit. The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the FCFAD performance of ENLC for the performance period ending December 31, 2022: Performance Level ENLC’s Achieved FCFAD Vesting percentage Below Threshold Less than $154 million 0% Threshold Equal to $154 million 50% Target Equal to $202 million 100% Maximum Greater than or Equal to $241 million 200% The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the FCFAD performance of ENLC for the performance period ending December 31, 2021: Performance Level ENLC’s Achieved FCFAD Vesting percentage Below Threshold Less than $205 million 0% Threshold Equal to $205 million 50% Target Equal to $256 million 100% Maximum Greater than or Equal to $300 million 200% The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the distributable cash flow (“DCF”) performance of ENLC for the performance period ending December 31, 2020: Performance Level ENLC’s Achieved Vesting percentage Below Threshold Less than $1.345 0% Threshold Equal to $1.345 50% Target Equal to $1.494 100% Maximum Greater than or Equal to $1.643 200% The fair value of each performance unit is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all performance unit grants made under the plan: (i) a risk-free interest rate based on United States Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of ENLC’s common units and the Designated Peer Companies’ or Peer Companies’ securities as applicable; (iii) an estimated ranking of ENLC among the Designated Peer Companies or Peer Companies, and (iv) the distribution yield. The fair value of the performance unit on the date of grant is expensed over a vesting period of approximately three years. The following table presents a summary of the grant-date fair value assumptions by performance unit grant date: Performance Units: June 2022 March 2022 (1) January 2021 July 2020 March 2020 January 2020 Grant-date fair value $ 11.71 $ 11.90 $ 4.70 $ 2.33 $ 1.13 $ 7.69 Beginning TSR price $ 8.54 $ 8.83 $ 3.71 $ 2.52 $ 1.25 $ 6.13 Risk-free interest rate 3.35 % 2.15 % 0.17 % 0.17 % 0.42 % 1.62 % Volatility factor 76.00 % 75.00 % 71.00 % 67.00 % 51.00 % 37.00 % ____________________________ (1) Excludes certain performance units awarded March 1, 2022 with vesting conditions based on performance metrics. The 88,863 performance units have a grant-date fair value of $8.90 and were scheduled to vest in February 2023. However, this award partially vested in October 2022 and is reflected in the “Vested” row of the summary of the performance units table below. The following table presents a summary of the performance units: Year Ended December 31, 2022 Performance Units: Number of Units Weighted Average Grant-Date Fair Value Unvested, beginning of period 3,574,827 $ 6.40 Granted 1,204,882 11.60 Vested (1) (1,480,802) 9.32 Forfeited (319,753) 12.11 Unvested, end of period 2,979,154 $ 6.44 Aggregate intrinsic value, end of period (in millions) $ 36.6 ____________________________ (1) Vested units included 806,918 ENLC common units withheld for payroll taxes paid on behalf of employees. A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2022, 2021, and 2020 is provided below (in millions). Year Ended December 31, Performance Units: 2022 2021 2020 Aggregate intrinsic value of units vested $ 20.4 $ 0.6 $ 0.9 Fair value of units vested $ 26.2 $ 4.4 $ 5.5 As of December 31, 2022, there were $10.1 million of unrecognized compensation costs that related to unvested performance units. These costs are expected to be recognized over a weighted-average period of 1.8 years. (d) Benefit Plan |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | (13) Derivatives Interest Rate Swaps In April 2019, we entered into $850.0 million of interest rate swaps to manage the interest rate risk associated with our floating-rate, LIBOR-based borrowings. Under this arrangement, we paid a fixed interest rate of 2.28% in exchange for LIBOR-based variable interest through December 2021. There was no ineffectiveness related to this hedge. During 2021 and 2020, we terminated a portion of the interest rate swaps in several increments in connection with repayments of the Term Loan, which was one of our floating-rate, LIBOR-based borrowings, and the remaining interest rate swaps expired on December 10, 2021. The following table presents the interest rate swaps terminations and the associated cash payments during 2021 and 2020 (in millions): Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 The components of the unrealized gain (loss) on designated cash flow hedge related to changes in the fair value of our interest rate swaps were as follows (in millions): Year Ended December 31, 2022 2021 2020 Change in fair value of interest rate swaps $ 1.9 $ 18.2 $ (5.6) Tax benefit (expense) (0.5) (4.3) 1.3 Unrealized gain (loss) on designated cash flow hedge $ 1.4 $ 13.9 $ (4.3) The interest expense, recognized from accumulated other comprehensive loss from the monthly settlement of our interest rate swaps and amortization of the termination payments, included in our consolidated statements of operations were as follows (in millions): Year Ended December 31, 2022 2021 2020 Interest expense $ 1.9 $ 18.3 $ 14.5 Commodity Derivatives We manage our exposure to changes in commodity prices by hedging the impact of market fluctuations by utilizing various OTC and exchange-traded commodity financial instrument contracts. Commodity swaps and futures are used both to manage and hedge price and location risk related to these market exposures and to manage margins on offsetting fixed-price purchase or sale commitments for physical quantities of crude, condensate, natural gas, and NGLs. We do not designate commodity swaps or futures as cash flow or fair value hedges for hedge accounting treatment under ASC 815. Therefore, changes in the fair value of our derivatives are recorded in revenue in the period incurred. In addition, our commodity risk management policy does not allow us to take speculative positions with our derivative contracts. We commonly enter into index (float-for-float) or fixed-for-float swaps in order to mitigate our cash flow exposure to fluctuations in the future prices of natural gas, NGLs, and crude oil. For natural gas, index swaps are used to protect against the price exposure of daily priced gas versus first-of-month priced gas. For condensate, crude oil, and natural gas, index swaps are also used to hedge the basis location price risk resulting from supply and markets being priced on different indices. Similarly, we use futures in order to mitigate our cash flow exposure to fluctuations in the future prices of natural gas, crude, and condensate. For natural gas, NGLs, condensate, and crude oil, fixed-for-float swaps and futures are used to protect cash flows against price fluctuations: (1) where we receive a percentage of liquids as a fee for processing third-party gas or where we receive a portion of the proceeds of the sales of natural gas and liquids as a fee, (2) in the natural gas processing and fractionation components of our business and (3) where we are mitigating the price risk for product held in inventory or storage. Assets and liabilities related to our derivative contracts are included in the fair value of derivative assets and liabilities, and the change in fair value of these contracts is recorded net as a gain (loss) on derivative activity on the consolidated statements of operations. We estimate the fair value of all of our derivative contracts based upon actively-quoted prices of the underlying commodities. The components of gain (loss) on derivative activity in the consolidated statements of operations related to commodity derivatives are (in millions): Year Ended December 31, 2022 2021 2020 Change in fair value of derivatives $ 40.2 $ (12.4) $ (10.5) Realized loss on derivatives (25.9) (146.7) (11.5) Gain (loss) on derivative activity $ 14.3 $ (159.1) $ (22.0) The fair value of derivative assets and liabilities related to commodity derivatives are as follows (in millions): December 31, 2022 December 31, 2021 Fair value of derivative assets—current $ 68.4 $ 22.4 Fair value of derivative assets—long-term 2.9 0.2 Fair value of derivative liabilities—current (42.9) (34.9) Fair value of derivative liabilities—long-term (2.7) (2.2) Net fair value of commodity derivatives $ 25.7 $ (14.5) Set forth below are the summarized notional volumes and fair values of all instruments related to commodity derivatives that we held for price risk management purposes and the related physical offsets at December 31, 2022 (in millions, except volumes). The remaining term of the contracts extend no later than January 2027. December 31, 2022 Commodity Instruments Unit Volume Net Fair Value NGL (short contracts) Swaps MMgals (138.4) $ 14.5 Natural gas (short contracts) Swaps and futures Bbtu (52.2) 40.9 Natural gas (long contracts) Swaps and futures Bbtu 25.7 (29.1) Crude and condensate (short contracts) Swaps and futures MMbbls (5.5) 2.7 Crude and condensate (long contracts) Swaps and futures MMbbls 1.6 (3.3) Total fair value of commodity derivatives $ 25.7 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (14) Fair Value Measurements ASC 820 sets forth a framework for measuring fair value and required disclosures about fair value measurements of assets and liabilities. Fair value under ASC 820 is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, use of unobservable prices or inputs are used to estimate the current fair value, often using an internal valuation model. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the item being valued. ASC 820 established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Our derivative contracts primarily consist of commodity swap and futures contracts, which are not traded on a public exchange. The fair values of commodity swap and futures contracts are determined using discounted cash flow techniques. The techniques incorporate Level 1 and Level 2 inputs for future commodity prices that are readily available in public markets or can be derived from information available in publicly-quoted markets. These market inputs are utilized in the discounted cash flow calculation considering the instrument’s term, notional amount, discount rate, and credit risk and are classified as Level 2 in hierarchy. Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions): Level 2 December 31, 2022 December 31, 2021 Commodity derivatives (1) $ 25.7 $ (14.5) ____________________________ (1) The fair values of commodity derivatives represent the amount at which the instruments could be exchanged in a current arms-length transaction adjusted for our credit risk and/or the counterparty credit risk as required under ASC 820. Fair Value of Financial Instruments The estimated fair value of our financial instruments has been determined using available market information and valuation methodologies. Considerable judgment is required to develop the estimates of fair value; thus, the estimates provided below are not necessarily indicative of the amount we could realize upon the sale or refinancing of such financial instruments (in millions): December 31, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value Long-term debt (1) $ 4,723.5 $ 4,385.9 $ 4,363.7 $ 4,520.0 Installment payable (2) $ — $ — $ 10.0 $ 10.0 Contingent consideration (2)(3) $ 5.5 $ 5.5 $ 6.9 $ 6.9 ____________________________ (1) The carrying value of long-term debt is reduced by debt issuance cost, net of accumulated amortization, of $34.9 million and $27.8 million as of December 31, 2022 and 2021, respectively. The respective fair values do not factor in debt issuance costs. (2) Consideration for the Amarillo Rattler Acquisition included a $10.0 million installment payable, which was paid on April 30, 2022, and a contingent component capped at $15.0 million and payable, if at all, between 2024 and 2026 based on Diamondback E&P LLC’s drilling activity above historical levels. Estimated fair values were calculated using a discounted cash flow analysis that utilized Level 3 inputs. (3) Consideration for the Central Oklahoma Acquisition included an earnout payable, if at all, between 2024 and 2027 based on fee revenue earned on certain contractually specified volumes for the annual periods beginning January 1, 2023 through December 31, 2026. As of December 31, 2022, we recorded a $1.3 million liability related to the earnout. The carrying amounts of our cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term maturities of these assets and liabilities. The fair values of all senior unsecured notes as of December 31, 2022 and 2021 were based on Level 2 inputs from third-party market quotations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (15) Commitments and Contingencies (a) Change of Control and Severance Agreements Certain members of our management are parties to severance and change of control agreements with the Operating Partnership. The severance and change in control agreements provide those individuals with severance payments in certain circumstances and prohibit such individuals from, among other things, competing with the General Partner or its affiliates during his or her employment. In addition, the severance and change of control agreements prohibit subject individuals from, among other things, disclosing confidential information about the General Partner or interfering with a client or customer of the General Partner or its affiliates, in each case during his or her employment and for certain periods (including indefinite periods) following the termination of such person’s employment. (b) Environmental Issues The operation of pipelines, plants, and other facilities for the gathering, processing, transmitting, stabilizing, fractionating, storing, or disposing of natural gas, NGLs, crude oil, condensate, brine, and other products is subject to stringent and complex laws and regulations pertaining to health, safety, and the environment. As an owner, partner, or operator of these facilities, we must comply with United States laws and regulations at the federal, state, and local levels that relate to air and water quality, hazardous and solid waste management and disposal, oil spill prevention, climate change, endangered species, and other environmental matters. The cost of planning, designing, constructing, and operating pipelines, plants, and other facilities must account for compliance with environmental laws and regulations and safety standards. Federal, state, or local administrative decisions, developments in the federal or state court systems, or other governmental or judicial actions may influence the interpretation and enforcement of environmental laws and regulations and may thereby increase compliance costs. Failure to comply with these 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 results of operations, financial condition, or cash flows. However, we cannot provide assurance that future events, such as changes in existing laws, regulations, or enforcement policies, the promulgation of new laws or regulations, or the discovery or development of new factual circumstances will not cause us to incur material costs. Environmental regulations have historically become more stringent over time, and thus, there can be no assurance as to the amount or timing of future expenditures for environmental compliance or remediation. (c) Litigation Contingencies In February 2021, the areas in which we operate experienced a severe winter storm, with extreme cold, ice, and snow occurring over an unprecedented period of approximately 10 days (“Winter Storm Uri”). As a result of Winter Storm Uri, we have encountered customer billing disputes related to the delivery of gas during the storm, including one that resulted in litigation. The litigation is between one of our subsidiaries, EnLink Gas Marketing, LP (“EnLink Gas”), and Koch Energy Services, LLC (“Koch”) in the 162nd District Court in Dallas County, Texas. The dispute centers on whether EnLink Gas was excused from delivering gas or performing under certain delivery or purchase obligations during Winter Storm Uri, given our declaration of force majeure during the storm. Koch has invoiced us approximately $53.9 million (after subtracting amounts owed to EnLink Gas) and does not recognize the declaration of force majeure. We believe the declaration of force majeure was valid and appropriate and we intend to vigorously defend against Koch’s claims. Our subsidiaries, EnLink Energy GP, LLC (“EnLink Energy”) and EnLink Gas, are also involved in industry-wide litigation arising out of Winter Storm Uri. These matters consist of (a) a multi-district litigation involving EnLink Energy currently pending in Harris County, Texas, in which multiple individual plaintiffs assert personal injury and property damage claims arising out of Winter Storm Uri against an aggregate of over 350 power generators, transmission/distribution utility, retail electric provider, and natural gas defendants across over 150 filed cases, and (b) a suit filed on February 9, 2023 involving EnLink Gas in Harris County, Texas by the alleged assignee of the claims of individual plaintiffs, asserting personal injury, property, and economic damage claims against over 90 natural gas producers, pipelines, marketers, sellers, and traders. On January 26, 2023, the court dismissed the claims against pipeline and other natural-gas related defendants in the multi-district litigation, including EnLink Energy. The order will be subject to appeal. We believe the claims in both matters against our subsidiaries lack merit and we intend to vigorously defend against such claims. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | (16) Segment Information We manage and report our activities primarily according to the nature of activity and geography. We have five reportable segments: • Permian Segment. The Permian segment includes our natural gas gathering, processing, and transmission activities and our crude oil operations in the Midland and Delaware Basins in West Texas and Eastern New Mexico; • Louisiana Segment. The Louisiana segment includes our natural gas and NGL pipelines, natural gas processing plants, natural gas and NGL storage facilities, and fractionation facilities located in Louisiana and our crude oil operations in ORV; • Oklahoma Segment. The Oklahoma segment includes our natural gas gathering, processing, and transmission activities, and our crude oil operations in Cana-Woodford, Arkoma-Woodford, northern Oklahoma Woodford, STACK, and adjacent areas; • North Texas Segment. The North Texas segment includes our natural gas gathering, processing, fractionation, and transmission activities in North Texas; and • Corporate Segment. The Corporate segment includes our unconsolidated affiliate investments in the Cedar Cove JV in Oklahoma, GCF in South Texas, and the Matterhorn JV in West Texas, as well as our corporate assets and expenses. We evaluate the performance of our operating segments based on segment profit and adjusted gross margin. Adjusted gross margin is a non-GAAP financial measure. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” for additional information. Summarized financial information for our reportable segments is shown in the following tables (in millions): Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2022 Natural gas sales $ 1,078.7 $ 1,128.4 $ 367.5 $ 139.0 $ — $ 2,713.6 NGL sales (1.5) 4,196.6 10.8 1.4 — 4,207.3 Crude oil and condensate sales 1,158.6 350.0 135.4 — — 1,644.0 Product sales 2,235.8 5,675.0 513.7 140.4 — 8,564.9 NGL sales—related parties 1,495.6 97.7 774.6 543.6 (2,911.5) — Crude oil and condensate sales—related parties — — 0.3 12.3 (12.6) — Product sales—related parties 1,495.6 97.7 774.9 555.9 (2,924.1) — Gathering and transportation 72.6 75.5 187.5 185.7 — 521.3 Processing 39.2 1.5 119.7 125.9 — 286.3 NGL services — 82.0 — 0.2 — 82.2 Crude services 21.4 33.3 14.9 0.7 — 70.3 Other services 0.8 1.6 (0.3) 0.7 — 2.8 Midstream services 134.0 193.9 321.8 313.2 — 962.9 NGL services—related parties — — — 1.6 (1.6) — Crude services—related parties — — 0.1 — (0.1) — Other services—related parties — 0.2 — — (0.2) — Midstream services—related parties — 0.2 0.1 1.6 (1.9) — Revenue from contracts with customers 3,865.4 5,966.8 1,610.5 1,011.1 (2,926.0) 9,527.8 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (3,280.3) (5,462.4) (1,124.4) (631.7) 2,926.0 (7,572.8) Realized gain (loss) on derivatives (9.0) 2.9 (13.1) (6.7) — (25.9) Change in fair value of derivatives 9.6 7.7 5.6 17.3 — 40.2 Adjusted gross margin 585.7 515.0 478.6 390.0 — 1,969.3 Operating expenses (200.2) (140.7) (90.9) (93.1) — (524.9) Segment profit 385.5 374.3 387.7 296.9 — 1,444.4 Depreciation and amortization (154.5) (156.5) (201.8) (121.1) (5.5) (639.4) Gain (loss) on disposition of assets 0.1 (13.8) 0.5 (4.8) — (18.0) General and administrative — — — — (125.2) (125.2) Interest expense, net of interest income — — — — (245.0) (245.0) Loss on extinguishment of debt — — — — (6.2) (6.2) Loss from unconsolidated affiliate investments — — — — (5.6) (5.6) Other income — — — — 0.8 0.8 Income (loss) before non-controlling interest and income taxes $ 231.1 $ 204.0 $ 186.4 $ 171.0 $ (386.7) $ 405.8 Capital expenditures $ 210.2 $ 33.7 $ 63.8 $ 22.8 $ 7.1 $ 337.6 ____________________________ (1) Includes related party cost of sales of $28.2 million for the year ended December 31, 2022. Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2021 Natural gas sales $ 609.4 $ 693.5 $ 213.4 $ 150.0 $ — $ 1,666.3 NGL sales 0.9 3,353.1 2.0 1.1 — 3,357.1 Crude oil and condensate sales 677.4 212.0 81.2 — — 970.6 Product sales 1,287.7 4,258.6 296.6 151.1 — 5,994.0 NGL sales—related parties 1,008.4 129.7 630.8 447.0 (2,215.9) — Crude oil and condensate sales—related parties — — 0.1 7.1 (7.2) — Product sales—related parties 1,008.4 129.7 630.9 454.1 (2,223.1) — Gathering and transportation 46.8 64.7 186.9 157.0 — 455.4 Processing 29.1 2.4 98.7 108.3 — 238.5 NGL services — 82.6 — 0.3 — 82.9 Crude services 18.4 39.3 12.8 0.7 — 71.2 Other services 0.2 1.7 0.6 0.5 — 3.0 Midstream services 94.5 190.7 299.0 266.8 — 851.0 Crude services—related parties — — 0.3 — (0.3) — Other services—related parties — 2.4 — — (2.4) — Midstream services—related parties — 2.4 0.3 — (2.7) — Revenue from contracts with customers 2,390.6 4,581.4 1,226.8 872.0 (2,225.8) 6,845.0 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (1,996.1) (4,091.2) (796.6) (531.8) 2,225.8 (5,189.9) Realized loss on derivatives (75.6) (42.3) (22.6) (6.2) — (146.7) Change in fair value of derivatives (7.7) 0.7 — (5.4) — (12.4) Adjusted gross margin 311.2 448.6 407.6 328.6 — 1,496.0 Operating expenses (81.5) (123.7) (80.0) (77.7) — (362.9) Segment profit 229.7 324.9 327.6 250.9 — 1,133.1 Depreciation and amortization (139.9) (141.0) (204.3) (114.3) (8.0) (607.5) Impairments — (0.6) — — (0.2) (0.8) Gain on disposition of assets — 1.2 — 0.3 — 1.5 General and administrative — — — — (107.8) (107.8) Interest expense, net of interest income — — — — (238.7) (238.7) Loss from unconsolidated affiliate investments — — — — (11.5) (11.5) Income (loss) before non-controlling interest and income taxes $ 89.8 $ 184.5 $ 123.3 $ 136.9 $ (366.2) $ 168.3 Capital expenditures $ 141.6 $ 9.3 $ 30.4 $ 11.9 $ 2.8 $ 196.0 ____________________________ (1) Includes related party cost of sales of $17.9 million for the year ended December 31, 2021. Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2020 Natural gas sales $ 150.1 $ 330.5 $ 153.1 $ 70.3 $ — $ 704.0 NGL sales 0.2 1,545.4 2.8 — — 1,548.4 Crude oil and condensate sales 558.1 126.7 40.3 — — 725.1 Product sales 708.4 2,002.6 196.2 70.3 — 2,977.5 NGL sales—related parties 312.6 31.4 296.4 115.2 (755.6) — Crude oil and condensate sales—related parties 0.6 — (0.1) 3.6 (4.1) — Product sales—related parties 313.2 31.4 296.3 118.8 (759.7) — Gathering and transportation 42.8 46.5 228.7 179.2 — 497.2 Processing 24.1 2.0 123.6 132.6 — 282.3 NGL services — 75.8 — 0.2 — 76.0 Crude services 16.8 45.2 16.5 0.2 — 78.7 Other services 1.2 1.6 0.4 0.9 — 4.1 Midstream services 84.9 171.1 369.2 313.1 — 938.3 Crude services—related parties — — 0.3 — (0.3) — Midstream services—related parties — — 0.3 — (0.3) — Revenue from contracts with customers 1,106.5 2,205.1 862.0 502.2 (760.0) 3,915.8 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (842.2) (1,787.0) (365.5) (153.8) 760.0 (2,388.5) Realized loss on derivatives (1.1) (6.0) (4.4) — — (11.5) Change in fair value of derivatives 1.1 (6.5) (4.5) (0.6) — (10.5) Adjusted gross margin 264.3 405.6 487.6 347.8 — 1,505.3 Operating expenses (94.2) (120.0) (82.2) (77.4) — (373.8) Segment profit 170.1 285.6 405.4 270.4 — 1,131.5 Depreciation and amortization (125.2) (145.8) (216.9) (143.4) (7.3) (638.6) Impairments (184.6) (170.0) (0.7) — (7.5) (362.8) Gain (loss) on disposition of assets (11.2) 0.1 0.3 2.0 — (8.8) General and administrative — — — — (103.3) (103.3) Interest expense, net of interest income — — — — (223.3) (223.3) Gain on extinguishment of debt — — — — 32.0 32.0 Income from unconsolidated affiliate investments — — — — 0.6 0.6 Other income — — — — 0.3 0.3 Income (loss) before non-controlling interest and income taxes $ (150.9) $ (30.1) $ 188.1 $ 129.0 $ (308.5) $ (172.4) Capital expenditures $ 181.1 $ 44.6 $ 17.9 $ 16.9 $ 2.1 $ 262.6 ____________________________ (1) Includes related party cost of sales of $8.7 million for the year ended December 31, 2020. The table below represents information about segment assets as of December 31, 2022 and 2021 (in millions): Segment Identifiable Assets: December 31, 2022 December 31, 2021 Permian $ 2,661.4 $ 2,358.6 Louisiana 2,310.7 2,428.6 Oklahoma 2,420.4 2,619.5 North Texas 1,094.6 896.8 Corporate (1) 163.9 179.7 Total identifiable assets $ 8,651.0 $ 8,483.2 ____________________________ |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | (17) Supplemental Cash Flow Information The following schedule summarizes cash paid for interest, cash paid (refunded) for income taxes, cash paid for operating leases included in cash flows from operating activities, non-cash investing activities, and non-cash financing activities for the periods presented (in millions): Year Ended December 31, Supplemental disclosures of cash flow information: 2022 2021 2020 Cash paid for interest $ 221.1 $ 208.8 $ 207.3 Cash paid (refunded) for income taxes $ 0.7 $ 0.3 $ (0.7) Cash paid for operating leases included in cash flows from operating activities $ 30.5 $ 24.6 $ 24.6 Non-cash investing activities: Non-cash accrual of property and equipment $ 4.2 $ 12.0 $ (39.6) Non-cash right-of-use assets obtained in exchange for operating lease liabilities $ 33.4 $ 18.7 $ 9.8 Non-cash acquisitions $ 1.3 $ 16.9 $ — Non-cash financing activities: Receivable from sale of VEX $ — $ — $ 10.0 Redemption of mandatorily redeemable non-controlling interest $ (6.5) $ — $ (4.0) |
Other Information
Other Information | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Information | (18) Other Information The following tables present additional detail for other current assets and other current liabilities, which consists of the following (in millions): Other current assets: December 31, 2022 December 31, 2021 Natural gas and NGLs inventory $ 147.1 $ 49.4 Prepaid expenses and other 19.5 34.2 Other current assets $ 166.6 $ 83.6 Other current liabilities: December 31, 2022 December 31, 2021 Accrued interest $ 57.6 $ 47.2 Accrued wages and benefits, including taxes 38.1 33.1 Accrued ad valorem taxes 32.0 28.3 Accrued settlement of mandatorily redeemable non-controlling interest 10.5 — Capital expenditure accruals 23.4 23.2 Short-term lease liability 26.2 18.1 Installment payable (1) — 10.0 Inactive easement commitment (2) — 9.8 Operating expense accruals 18.5 9.6 Other 23.3 23.6 Other current liabilities $ 229.6 $ 202.9 ____________________________ (1) Consideration for the Amarillo Rattler Acquisition included an installment payable, which was paid on April 30, 2022. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying consolidated financial statements have been prepared in accordance with GAAP. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to the financial statements for the prior period to conform to current period presentation. The effect of these reclassifications had no impact on previously reported members’ equity or net income (loss). |
Management's Use of Estimates | Management’s Use of EstimatesThe preparation of financial statements in accordance with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates. |
Revenue Recognition | Revenue Recognition We generate the majority of our revenues from midstream energy services, including gathering, transmission, processing, fractionation, storage, condensate stabilization, brine services, and marketing, through various contractual arrangements, which include fee-based contract arrangements or arrangements where we purchase and resell commodities in connection with providing the related service and earn a net margin for our fee. While our transactions vary in form, the essential element of most of our transactions is the use of our assets to transport a product or provide a processed product to an end-user or marketer at the tailgate of the plant, pipeline, or barge, truck, or rail terminal. Revenues from both “Product sales” and “Midstream services” represent revenues from contracts with customers and are reflected on the consolidated statements of operations as follows: • Product sales— Product sales represent the sale of natural gas, NGLs, crude oil, and condensate where the product is purchased and resold in connection with providing our midstream services as outlined above. • Midstream services— Midstream services represent all other revenue generated as a result of performing our midstream services outlined above. Evaluation of Our Contractual Performance Obligations Performance obligations in our contracts with customers include: • promises to perform midstream services for our customers over a specified contractual term and/or for a specified volume of commodities; and • promises to sell a specified volume of commodities to our customers. The identification of performance obligations under our contracts requires a contract-by-contract evaluation of when control, including the economic benefit, of commodities transfers to and from us (if at all). For contracts where control of commodities transfers to us before we perform our services, we generally have no performance obligation for our services, and accordingly, we do not consider these revenue-generating contracts. Based on the control determination, all contractually-stated fees that are deducted from our payments to producers or other suppliers for commodities purchased are reflected as a reduction in the cost of such commodity purchases. Alternatively, for contracts where control of commodities transfers to us after we perform our services, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating and recognize the fees received for satisfying them as midstream services revenues over time as we satisfy our performance obligations. For contracts where control of commodities never transfers to us and we simply earn a fee for our services, we recognize these fees as midstream services revenues over time as we satisfy our performance obligations. We also evaluate our contractual arrangements that contain a purchase and sale of commodities under the principal/agent provisions in ASC 606. For contracts where we possess control of the commodity and act as principal in the purchase and sale, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities when purchased. For contracts in which we do not possess control of the commodity and are acting as an agent, our consolidated statements of operations only reflect midstream services revenues that we earn based on the fees contained in the applicable contract. Accounting Methodology for Certain Contracts For NGL contracts in which we purchase raw mix NGLs and subsequently transport, fractionate, and market the NGLs, we consider the contractually-stated fees to serve as pricing mechanisms that reduce the cost of the commodities purchased. We account for the contractually-stated fees on the consolidated statements of operations as a reduction of cost of sales of such commodities purchased upon receipt of the raw mix NGLs, because we determined that the control, including the economic benefit, of commodities has passed to us once the raw mix NGLs have been purchased from the customer. Upon sale of the NGLs to a third-party customer, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities purchased. For our crude oil and condensate service contracts in which we purchase the commodity, we utilize a similar approach under as outlined above for NGL contracts. For our natural gas gathering and processing contracts in which we perform midstream services and also purchase the natural gas, we determine if economic control of the commodities has passed from the producer to us before or after we perform our services (if at all). Control is assessed on a contract-by-contract basis by analyzing each contract’s provisions, which can include provisions for: the customer to take its residue gas and/or NGLs in-kind; fixed or actual NGL or keep-whole recovery; commodity purchase prices at weighted average sales price or market index-based pricing; and various other contract-specific considerations. Based on this control assessment, our gathering and processing contracts fall into two primary categories: • For gathering and processing contracts in which there is a commodity purchase and analysis of the contract provisions indicates that control, including the economic benefit, of the natural gas passes to us when the natural gas is brought into our system, we do not consider these contracts to contain performance obligations for our services. As control of the natural gas passes to us prior to performing our gathering and processing services, we are, in effect, performing our services for our own benefit. Based on this control determination, we consider the contractually-stated fees to serve as pricing mechanisms that reduce the cost of such commodity purchased upon receipt of the natural gas, rather than being recorded as midstream services revenue. Upon sale of the residue gas and/or NGLs to a third-party customer, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities purchased, net of fees. • For gathering and processing contracts in which there is a commodity purchase and analysis of the contract provisions indicates that control, including the economic benefit, of the natural gas does not pass to us until after the natural gas has been gathered and processed, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating, and we recognize the fees received for satisfying these performance obligations as midstream services revenues over time as we satisfy our performance obligations. For midstream service contracts related to NGL, crude oil, or natural gas gathering and processing in which there is no commodity purchase or control of the commodity never passes to us and we simply earn a fee for our services, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating, and we recognize the fees received for satisfying these performance obligations as midstream services revenue over time as we satisfy our performance obligations. For our natural gas transmission contracts, we determined that control of the natural gas never transfers to us and we simply earn a fee for our services. Therefore, we recognize these fees as midstream services revenue over time as we satisfy our performance obligations. We also evaluate our commodity marketing contracts, under which we purchase and sell commodities in connection with our gas, NGL, and crude and condensate midstream services, pursuant to ASC 606, including the principal/agent provisions. For contracts in which we possess control of the commodity and act as principal in the purchase and sale of commodities, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities when purchased. For contracts in which we do not possess control of the commodity and are acting as agent, our consolidated statements of operations only reflect midstream services revenues that we earn based on the fees contained in the applicable contract. Satisfaction of Performance Obligations and Recognition of Revenue For our commodity sales contracts, we satisfy our performance obligations at the point in time at which the commodity transfers from us to the customer. This transfer pattern aligns with our billing methodology. Therefore, we recognize product sales revenue at the time the commodity is delivered and in the amount to which we have the right to invoice the customer. For our midstream service contracts that contain revenue-generating performance obligations, we satisfy our performance obligations over time as we perform the midstream service and as the customer receives the benefit of these services over the term of the contract. We recognize revenue in the amount to which the entity has a right to invoice, since we have a right to consideration from our customer in an amount that corresponds directly with the value to the customer of our performance completed to date. Accordingly, we continue to recognize revenue over time as our midstream services are performed. We generally accrue one month of sales and the related natural gas, NGL, condensate, and crude oil purchases and reverse these accruals when the sales and purchases are invoiced and recorded in the subsequent month. Actual results could differ from the accrual estimates. We typically receive payment for invoiced amounts within one month, depending on the terms of the contract. Prior to issuing our financial statements, we review our revenue and purchases estimates based on available information to determine if adjustments are required. We account for taxes collected from customers attributable to revenue transactions and remitted to government authorities on a net basis (excluded from revenues). Minimum Volume Commitments and Firm Transportation Contracts |
Gas Imbalance Accounting | Gas Imbalance AccountingQuantities of natural gas and NGLs over-delivered or under-delivered related to imbalance agreements are recorded monthly as receivables or payables using weighted average prices at the time of the imbalance. These imbalances are typically settled with deliveries of natural gas or NGLs. We had imbalance payables of $17.3 million and $16.3 million at December 31, 2022 and 2021, respectively, which approximate the fair value of these imbalances. We had imbalance receivables of $20.2 million and $14.5 million at December 31, 2022 and 2021, respectively, which are carried at the lower of cost or market value. Imbalance receivables and imbalance payables are included in the line items “Accrued revenue and other” and “Accrued gas, NGLs, condensate, and crude oil purchases,” respectively, on the consolidated balance sheets. |
Cash and Cash Equivalents | Cash and Cash EquivalentsWe consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Income Taxes | Income Taxes Certain of our operations are subject to income taxes assessed by the federal and various state jurisdictions in the U.S. Additionally, certain of our operations are subject to tax assessed by the state of Texas that is computed based on modified gross margin as defined by the State of Texas. The Texas franchise tax is presented as income tax expense in the accompanying statements of operations. We account for deferred income taxes related to the federal and state jurisdictions using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for the future tax benefits attributable to the expected utilization of existing tax net operating loss carryforwards and other types of carryforwards. If the future utilization of some portion of carryforwards is determined to be unlikely, a valuation allowance is provided to reduce the recorded tax benefits from such assets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In the event interest or penalties are incurred with respect to income tax matters, our policy will be to include such items in income tax expense. We record deferred tax assets and liabilities on a net basis on the consolidated balance sheets, with deferred tax assets included in “Other assets, net” and deferred tax liabilities included in “Deferred tax liability, net.” |
Natural Gas, Natural Gas Liquids, Crude Oil, and Condensate Inventory | Natural Gas, Natural Gas Liquids, Crude Oil, and Condensate InventoryOur inventories of products consist of natural gas, NGLs, crude oil, and condensate. We report these assets at the lower of cost or market value which is determined by using the weighted average cost method. |
Property and Equipment | Property and Equipment Property and equipment are stated at historical cost less accumulated depreciation. Assets acquired in a business combination are recorded at fair value. Routine repairs and maintenance are charged against income when incurred. Renewals and improvements that extend the useful life or improve the function of the properties are capitalized. Interest costs for material projects are capitalized to property and equipment during the period the assets are undergoing preparation for intended use. The components of property and equipment, net of accumulated depreciation are as follows (in millions): Year Ended December 31, 2022 2021 Transmission assets $ 1,452.0 $ 1,442.2 Gathering systems 5,370.0 4,903.8 Gas processing plants and fractionation facilities 4,237.8 4,119.1 Other property and equipment 165.0 161.0 Construction in process 105.7 94.2 Property and equipment 11,330.5 10,720.3 Accumulated depreciation (4,774.5) (4,332.0) Property and equipment, net of accumulated depreciation $ 6,556.0 $ 6,388.3 Depreciation Expense. Depreciation is calculated using the straight-line method based on the estimated useful life of each asset, as follows: Useful Lives Transmission assets 20 - 25 years Gathering systems 20 - 25 years Gas processing plants and fractionation facilities 20 - 25 years Other property and equipment 3 - 25 years Gain or Loss on Disposition. Upon the disposition or retirement of property and equipment, any gain or loss is recognized in operating income in the consolidated statements of operations. For the years ended December 31, 2022, 2021, and 2020, dispositions primarily related to the sale of certain non-core assets. The (gain) loss on disposition of assets is as follows (in millions): Year Ended December 31, 2022 2021 2020 Net book value of assets disposed $ 30.8 $ 3.3 $ 36.4 Less: Proceeds from sales (12.8) (4.8) (27.6) (Gain) loss on disposition of assets $ 18.0 $ (1.5) $ 8.8 Impairment Review . In accordance with ASC 360, Property, Plant, and Equipment , we evaluate long-lived assets of identifiable business activities for potential impairment whenever events or changes in circumstances, or triggering events, indicate that their carrying value may not be recoverable. Triggering events include, but are not limited to, significant changes in the use of the asset group, current operating results that are significantly less than forecasted results, negative industry or economic trends including changes in commodity prices, significant adverse changes in legal or regulatory factors, or an expectation that it is more likely than not that an asset group will be sold before the end of its useful life. The carrying amount of a long-lived asset is not recoverable when it exceeds the undiscounted sum of the future cash flows expected to result from the use and eventual disposition of the asset. Estimates of expected future cash flows represent management’s best estimate based on reasonable and supportable assumptions. When the carrying amount of a long-lived asset is not recoverable, an impairment is recognized equal to the excess of the asset’s carrying value over its fair value, which is based on inputs that are not observable in the market, and thus represent Level 3 inputs. When determining whether impairment of our long-lived assets has occurred, we must estimate the undiscounted cash flows attributable to the asset. Our estimate of cash flows is based on assumptions regarding: • the future fee-based rate of new business or contract renewals; • the purchase and resale margins on natural gas, NGLs, crude oil, and condensate; • the volume of natural gas, NGLs, crude oil, and condensate available to the asset; • markets available to the asset; • operating expenses; and • future natural gas, NGLs, crude oil, and condensate prices. The estimated volume of natural gas, NGLs, crude oil, and condensate available to an asset is sometimes based on assumptions regarding future drilling activity, which may be dependent in part on natural gas, NGL, crude oil, and condensate prices. Projections of natural gas, NGL, crude oil, and condensate volumes and future commodity prices are inherently subjective and contingent upon a number of variable factors, including but not limited to: • changes in general economic conditions or demand for our products in regions in which our markets are located; • the availability and prices of natural gas, NGLs, crude oil, and condensate supply; • our ability to negotiate favorable sales agreements; • the risks that natural gas, NGLs, crude oil, and condensate exploration and production activities will not occur or be successful; • our dependence on certain key customers, producers, and transporters of natural gas, NGLs, crude oil, and condensate; and |
Comprehensive Income (Loss) | Comprehensive Income (Loss)Comprehensive income (loss) is comprised of net income (loss) and the effective portion of gains or losses on derivative financial instruments that qualify as cash flow hedges pursuant to ASC 815. |
Equity Method of Accounting | Equity Method of Accounting We account for investments where we do not control the investment but have the ability to exercise significant influence using the equity method of accounting. Under this method, unconsolidated affiliate investments are initially carried at the acquisition cost, increased by our proportionate share of the investee’s net income and by contributions made, and decreased by our proportionate share of the investee’s net losses and by distributions received. We evaluate our unconsolidated affiliate investments for potential impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. We recognize impairments of our investments as a loss from unconsolidated affiliates on our consolidated statements of operations. |
Non-controlling Interests | Non-controlling Interests We account for investments where we control the investment using the consolidation method of accounting. Under this method, we consolidate all the assets and liabilities of an investment on our consolidated balance sheets and record non-controlling interest for the portion of the investment that we do not own. We include all of an investment’s results of operations on our consolidated statements of operations and record income attributable to non-controlling interests for the portion of the investment that we do not own. Our non-controlling interests for the years ended December 31, 2022, 2021, and 2020 relate to the Series B Preferred Units, the Series C Preferred Units, NGP’s 49.9% ownership of the Delaware Basin JV, and Marathon Petroleum Corporation’s 50.0% ownership interest in the Ascension JV. |
Goodwill | Goodwill Goodwill is the cost of an acquisition less the fair value of the net identifiable assets of the acquired business. We evaluated goodwill for impairment annually as of October 31 and whenever events or changes in circumstances indicated it was more likely than not that the fair value of a reporting unit is less than its carrying amount. |
Intangible Assets | Intangible Assets Intangible assets associated with customer relationships are amortized on a straight-line basis over the expected period of benefits of the customer relationships, which range from ten Intangibles—Goodwill and Other |
Asset Retirement Obligations | Asset Retirement ObligationsWe recognize liabilities for retirement obligations associated with our pipelines and processing and fractionation facilities. Such liabilities are recognized when there is a legal obligation associated with the retirement of the assets and the amount can be reasonably estimated. The initial measurement of an asset retirement obligation is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the asset retirement cost. Our retirement obligations include estimated environmental remediation costs that arise from normal operations and are associated with the retirement of the long-lived assets. The asset retirement cost is depreciated using the straight-line depreciation method similar to that used for the associated property and equipment. |
Leases | LeasesWe account for leases under ASC 842 using the modified retrospective approach whereby we recognized leases on our consolidated balance sheet by recording a right-of-use asset and lease liability. We applied certain practical expedients that were allowed in the adoption of ASC 842, including not reassessing existing contracts for lease arrangements, not reassessing existing lease classification, not recording a right-of-use asset or lease liability for leases of twelve months or less, and not separating lease and non-lease components of a lease arrangement.We evaluate new contracts at inception to determine if the contract conveys the right to control the use of an identified asset for a period of time in exchange for periodic payments. A lease exists if we obtain substantially all of the economic benefits of an asset, and we have the right to direct the use of that asset. When a lease exists, we record a right-of-use asset that represents our right to use the asset over the lease term and a lease liability that represents our obligation to make payments over the lease term. Lease liabilities are recorded at the sum of future lease payments discounted by the collateralized rate we could obtain to lease a similar asset over a similar period, and right-of-use assets are recorded equal to the corresponding lease liability, plus any prepaid or direct costs incurred to enter the lease, less the cost of any incentives received from the lessor. |
Derivatives | Derivatives We use derivative instruments to hedge against changes in cash flows related to product price. We generally determine the fair value of swap contracts based on the difference between the derivative’s fixed contract price and the underlying market price at the determination date. The asset or liability related to the derivative instruments is recorded on the balance sheet at the fair value of derivative assets or liabilities in accordance with ASC 815. Changes in fair value of derivative instruments are recorded in gain or loss on derivative activity in the period of change. Realized gains and losses on commodity-related derivatives are recorded as gain or loss on derivative activity within revenues in the consolidated statements of operations in the period incurred. Settlements of derivatives are included in cash flows from operating activities. |
Concentrations of Credit Risk | Concentrations of Credit RiskFinancial instruments, which potentially subject us to concentrations of credit risk, consist primarily of trade accounts receivable and commodity financial instruments. Management believes the risk is limited, other than our exposure to key customers discussed below, since our customers represent a broad and diverse group of energy marketers and end users. |
Environmental Costs | Environmental CostsEnvironmental expenditures are expensed or capitalized depending on the nature of the expenditures and the future economic benefit. Expenditures that relate to an existing condition caused by past operations that do not contribute to current or future revenue generation are expensed. Liabilities for these expenditures are recorded on an undiscounted basis (or a discounted basis when the obligation can be settled at fixed and determinable amounts) when environmental assessments or clean-ups are probable and the costs can be reasonably estimated. |
Unit-Based Awards | Unit-Based AwardsWe recognize compensation cost related to all unit-based awards in our consolidated financial statements in accordance with ASC 718. |
Commitments and Contingencies | Commitments and ContingenciesLiabilities for loss contingencies arising from claims, assessments, litigation, or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with a loss contingency are expensed as incurred. |
Debt Issuance Costs | Debt Issuance CostsCosts incurred in connection with the issuance of long-term debt are deferred and amortized into interest expense using the straight-line method over the term of the related debt. Gains or losses on debt repurchases, redemptions, and debt extinguishments include any associated unamortized debt issue costs. |
Redeemable Non-Controlling Interest | Redeemable Non-Controlling InterestNon-controlling interests that contain an option for the non-controlling interest holder to require us to purchase such interests for cash are considered to be redeemable non-controlling interests because the redemption feature is not deemed to be a freestanding financial instrument and because the redemption is not solely within our control. Redeemable non-controlling interests are not considered to be a component of members’ equity and are reported as temporary equity in the mezzanine section on the consolidated balance sheets. The amount recorded as redeemable non-controlling interest at each balance sheet date is the greater of the redemption value and the carrying value of the redeemable non-controlling interest (the initial carrying value increased or decreased for the non-controlling interest holder’s share of net income or loss and distributions). When the redemption feature is exercised the redemption value of the non-controlling interest is reclassified to a liability on the consolidated balance sheets. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table summarizes the contractually committed fees (in millions) that we expect to recognize in our consolidated statements of operations, in either revenue or reductions to cost of sales, from MVC and firm transportation contractual provisions. Under these agreements, our customers or suppliers agree to transport or process a minimum volume of commodities on our system over an agreed period. If a customer or supplier fails to meet the minimum volume specified in such agreement, the customer or supplier is obligated to pay a contractually determined fee based upon the shortfall between actual volumes and the contractually stated volumes. All amounts in the table below are determined using the contractually-stated MVC or firm transportation volumes specified for each period multiplied by the relevant deficiency or reservation fee. Actual amounts could differ due to the timing of revenue recognition or reductions to cost of sales resulting from make-up right provisions included in our agreements, as well as due to nonpayment or nonperformance by our customers. We record revenue under MVC and firm transportation contracts during periods of shortfall when it is known that the customer cannot, or will not, make up the deficiency. These fees do not represent the shortfall amounts we expect to collect under our MVC and firm transportation contracts, as we generally do not expect volume shortfalls to equal the full amount of the contractual MVCs and firm transportation contracts during these periods. Contractually Committed Fees Commitments 2023 $ 135.0 2024 103.8 2025 91.7 2026 90.7 2027 74.9 Thereafter 926.5 Total $ 1,422.6 |
Property, Plant and Equipment | The components of property and equipment, net of accumulated depreciation are as follows (in millions): Year Ended December 31, 2022 2021 Transmission assets $ 1,452.0 $ 1,442.2 Gathering systems 5,370.0 4,903.8 Gas processing plants and fractionation facilities 4,237.8 4,119.1 Other property and equipment 165.0 161.0 Construction in process 105.7 94.2 Property and equipment 11,330.5 10,720.3 Accumulated depreciation (4,774.5) (4,332.0) Property and equipment, net of accumulated depreciation $ 6,556.0 $ 6,388.3 Depreciation Expense. Depreciation is calculated using the straight-line method based on the estimated useful life of each asset, as follows: Useful Lives Transmission assets 20 - 25 years Gathering systems 20 - 25 years Gas processing plants and fractionation facilities 20 - 25 years Other property and equipment 3 - 25 years |
Schedule of Gain or Loss on Disposition of Assets | The (gain) loss on disposition of assets is as follows (in millions): Year Ended December 31, 2022 2021 2020 Net book value of assets disposed $ 30.8 $ 3.3 $ 36.4 Less: Proceeds from sales (12.8) (4.8) (27.6) (Gain) loss on disposition of assets $ 18.0 $ (1.5) $ 8.8 |
Schedule of Property and Equipment Impairment Expense | We recognized impairment expense related to property and equipment as follows (in millions): Year Ended December 31, 2022 2021 2020 (1) Property and equipment impairment $ — $ 0.6 $ 168.0 ____________________________ (1) For the year ended December 31, 2020, we recognized impairment on property and equipment related to a portion of our Louisiana reporting segment because the carrying amounts were not recoverable based on our expected future cash flows, and $3.4 million of impairments related to certain cancelled projects. |
Schedule of Interest Rate Swaps | During 2021 and 2020, we terminated a portion of the interest rate swaps in several increments in connection with repayments of the Term Loan, which was one of our floating-rate, LIBOR-based borrowings, and the remaining interest rate swaps expired on December 10, 2021. The following table presents the interest rate swaps terminations and the associated cash payments during 2021 and 2020 (in millions): Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 |
Schedules of Concentration of Risk, by Risk Factor | The following customers individually represented greater than 10% of our consolidated revenues during the years ended December 31, 2022, 2021, or 2020. No other customers represented greater than 10% of our consolidated revenues during the periods presented. Year Ended December 31, 2022 2021 2020 Devon 6.4 % 6.7 % 14.4 % Dow Hydrocarbons and Resources LLC 14.2 % 14.5 % 13.2 % Marathon Petroleum Corporation 14.7 % 13.4 % 12.2 % |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table presents the fair value of the identified assets received and liabilities assumed at the acquisition date (in millions): Consideration Cash (including working capital payment) $ 50.6 Installment payable 10.0 Contingent consideration fair value (1) 6.9 Total consideration: $ 67.5 Purchase price allocation Assets acquired: Current assets (including $1.3 million in cash) $ 1.4 Property and equipment 16.3 Intangible assets 50.6 Other assets, net (2) 0.6 Liabilities assumed: Current liabilities (0.8) Other long-term liabilities (2) (0.6) Net assets acquired $ 67.5 ____________________________ (1) The estimated fair value of the Amarillo Rattler, LLC contingent consideration was calculated in accordance with the fair value guidance contained in ASC 820. There are a number of assumptions and estimates factored into these fair values and actual contingent consideration payments could differ from the estimated fair values. (2) “Other assets, net” and “Other long-term liabilities” consist of the right-of-use asset and lease liability, respectively, recorded through the acquisition of Amarillo Rattler, LLC. The following table presents the preliminary fair value of the identified assets received and liabilities assumed at the acquisition date (in millions): Consideration Cash (including working capital payment) $ 289.5 Purchase price allocation Assets acquired: Current assets $ 17.3 Property and equipment 275.0 Liabilities assumed: Current liabilities (2.8) Net assets acquired $ 289.5 |
Schedule of Pro Forma Information | The following unaudited pro forma condensed consolidated financial information (in millions) for the years ended December 31, 2022 and 2021 gives effect to the Barnett Shale Acquisition on July 1, 2022 and the Central Oklahoma Acquisition on December 19, 2022 as if each of the acquisitions had occurred on January 1, 2021. On a historical pro forma basis, our consolidated revenues, net income (loss), total assets, and earnings per unit amounts would not have differed materially had the Amarillo Rattler Acquisition been completed on January 1, 2021 rather than April 30, 2021. The unaudited pro forma condensed consolidated financial information has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the transactions taken place on the dates indicated and is not intended to be a projection of future results. Year Ended December 31, 2022 2021 Pro forma total revenues $ 9,630.4 $ 6,782.9 Pro forma net income $ 534.3 $ 157.5 |
Schedule of Carrying Value of Contingent Consideration Liability | The following table represents our change in carrying value of the Amarillo Rattler contingent consideration liability for the periods stated (in millions): Year Ended December 31, 2022 2021 Contingent consideration liability, beginning of period (1) $ 6.9 $ 6.9 Change in fair value (2.7) — Contingent consideration liability, end of period $ 4.2 $ 6.9 ____________________________ (1) The contingent consideration for the Amarillo Rattler Acquisition was recorded on April 30, 2021. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Value | The following table represents our change in carrying value of intangible assets for the periods stated (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Year Ended December 31, 2022 Customer relationships, beginning of period $ 1,844.8 $ (795.1) $ 1,049.7 Amortization expense — (128.5) (128.5) Customer relationships, end of period $ 1,844.8 $ (923.6) $ 921.2 Year Ended December 31, 2021 Customer relationships, beginning of period $ 1,794.2 $ (668.8) $ 1,125.4 Customer relationships obtained from acquisition of business 50.6 — 50.6 Amortization expense — (126.3) (126.3) Customer relationships, end of period $ 1,844.8 $ (795.1) $ 1,049.7 Year Ended December 31, 2020 Customer relationships, beginning of period $ 1,795.8 $ (545.9) $ 1,249.9 Amortization expense — (123.5) (123.5) Retirements (1) (1.6) 0.6 (1.0) Customer relationships, end of period $ 1,794.2 $ (668.8) $ 1,125.4 ____________________________ (1) Intangible assets retired as a result of the disposition of certain non-core assets. |
Schedule of Amortization Expense | The following table summarizes our estimated aggregate amortization expense for the next five years and thereafter (in millions): 2023 $ 127.6 2024 127.6 2025 110.2 2026 106.3 2027 106.3 Thereafter 343.2 Total $ 921.2 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | Lease balances are recorded on the consolidated balance sheets as follows (in millions): Operating leases: December 31, 2022 December 31, 2021 Other assets, net $ 69.5 $ 60.1 Other current liabilities $ 26.2 $ 18.1 Other long-term liabilities $ 66.2 $ 67.1 Other lease information Weighted-average remaining lease term—Operating leases 8.7 years 10.3 years Weighted-average discount rate—Operating leases 4.7 % 4.9 % |
Lease, Cost | The components of total lease expense are as follows (in millions): Year Ended December 31, 2022 2021 2020 Operating lease expense: Long-term operating lease expense $ 28.2 $ 21.7 $ 23.1 Short-term lease expense 34.3 17.5 22.1 Variable lease expense 18.8 15.6 11.8 Impairments — 0.2 6.8 Total lease expense, before sublease income 81.3 55.0 63.8 Sublease income (1.1) — — Total lease expense, net of sublease income $ 80.2 $ 55.0 $ 63.8 |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes the maturity of our lease liability as of December 31, 2022 (in millions): Total 2023 2024 2025 2026 2027 Thereafter Undiscounted operating lease liability $ 119.9 $ 29.2 $ 18.3 $ 12.9 $ 8.9 $ 8.1 $ 42.5 Reduction due to present value (27.5) (3.7) (3.1) (2.5) (2.0) (1.7) (14.5) Operating lease liability $ 92.4 $ 25.5 $ 15.2 $ 10.4 $ 6.9 $ 6.4 $ 28.0 |
Finance Lease, Liability, Maturity | The following table summarizes the maturity of our lease liability as of December 31, 2022 (in millions): Total 2023 2024 2025 2026 2027 Thereafter Undiscounted operating lease liability $ 119.9 $ 29.2 $ 18.3 $ 12.9 $ 8.9 $ 8.1 $ 42.5 Reduction due to present value (27.5) (3.7) (3.1) (2.5) (2.0) (1.7) (14.5) Operating lease liability $ 92.4 $ 25.5 $ 15.2 $ 10.4 $ 6.9 $ 6.4 $ 28.0 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Debt | As of December 31, 2022 and 2021, long-term debt consisted of the following (in millions): December 31, 2022 December 31, 2021 Outstanding Principal Premium (Discount) Long-Term Debt Outstanding Principal Premium (Discount) Long-Term Debt Revolving Credit Facility due 2027 (1) $ 255.0 $ — $ 255.0 $ 15.0 $ — $ 15.0 AR Facility due 2025 (2) 500.0 — 500.0 350.0 — 350.0 ENLK’s 4.40% Senior unsecured notes due 2024 97.9 — 97.9 521.8 0.7 522.5 ENLK’s 4.15% Senior unsecured notes due 2025 421.6 (0.1) 421.5 720.8 (0.4) 720.4 ENLK’s 4.85% Senior unsecured notes due 2026 491.0 (0.2) 490.8 491.0 (0.3) 490.7 ENLC’s 5.625% Senior unsecured notes due 2028 500.0 — 500.0 500.0 — 500.0 ENLC’s 5.375% Senior unsecured notes due 2029 498.7 — 498.7 498.7 — 498.7 ENLC’s 6.50% Senior unsecured notes due 2030 700.0 — 700.0 — — — ENLK’s 5.60% Senior unsecured notes due 2044 350.0 (0.2) 349.8 350.0 (0.2) 349.8 ENLK’s 5.05% Senior unsecured notes due 2045 450.0 (5.2) 444.8 450.0 (5.5) 444.5 ENLK’s 5.45% Senior unsecured notes due 2047 500.0 (0.1) 499.9 500.0 (0.1) 499.9 Debt classified as long-term $ 4,764.2 $ (5.8) 4,758.4 $ 4,397.3 $ (5.8) 4,391.5 Debt issuance cost (3) (34.9) (27.8) Long-term debt, net of unamortized issuance cost $ 4,723.5 $ 4,363.7 ____________________________ (1) The effective interest rate was 6.5% and 3.9% at December 31, 2022 and 2021, respectively. (2) The effective interest rate was 5.3% and 1.2% at December 31, 2022 and 2021, respectively. Issuance Maturity Date of Notes Early Redemption Date Basis Point Premium 2024 Notes April 1, 2024 Prior to January 1, 2024 25 Basis Points 2025 Notes June 1, 2025 Prior to March 1, 2025 30 Basis Points 2026 Notes July 15, 2026 Prior to April 15, 2026 50 Basis Points 2028 Notes January 15, 2028 Prior to July 15, 2027 50 Basis Points 2029 Notes June 1, 2029 Prior to March 1, 2029 50 Basis Points 2030 Notes September 1, 2030 Prior to March 1, 2030 50 Basis Points 2044 Notes April 1, 2044 Prior to October 1, 2043 30 Basis Points 2045 Notes April 1, 2045 Prior to October 1, 2044 30 Basis Points 2047 Notes June 1, 2047 Prior to December 1, 2046 40 Basis Points Activity related to the repurchases of ENLK’s senior unsecured notes from the settled debt tender offer consisted of the following (in millions): Year Ended Debt repurchased $ 700.0 Aggregate payments (705.3) Net discount on repurchased debt (1.0) Loss on extinguishment of debt $ (6.3) Year Ended Year Ended Debt repurchased $ 23.1 $ 67.7 Aggregate payments (22.5) (36.0) Net discount on repurchased debt — (0.3) Accrued interest on repurchased debt — 0.6 Gain on extinguishment of debt $ 0.6 $ 32.0 |
Schedule of Maturities of Long-term Debt | Maturities for the long-term debt as of December 31, 2022 are as follows (in millions): 2023 $ — 2024 97.9 2025 921.6 2026 491.0 2027 255.0 Thereafter 2,998.7 Subtotal 4,764.2 Less: net discount (5.8) Less: debt issuance cost (34.9) Long-term debt, net of unamortized issuance cost $ 4,723.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of our income tax benefit (expense) are as follows (in millions): Year Ended December 31, 2022 2021 2020 Current income tax expense $ (0.4) $ (0.8) $ (1.1) Deferred tax benefit (expense) 95.3 (24.6) (142.1) Total income tax benefit (expense) $ 94.9 $ (25.4) $ (143.2) |
Reconciliation of Total Income Tax Expense to Income before Income Taxes | The following schedule reconciles income tax benefit (expense) and the amount calculated by applying the statutory U.S. federal tax rate to income (loss) before non-controlling interest and income taxes (in millions): Year Ended December 31, 2022 2021 2020 Expected income tax benefit (expense) based on federal statutory tax rate $ (55.9) $ (10.0) $ 58.5 State income tax benefit (expense), net of federal benefit (7.0) (1.4) 6.5 Unit-based compensation (1) 0.7 (3.1) (6.0) Non-deductible expense related to impairments — — (43.4) Statutory rate changes (2) — (10.2) — Change in valuation allowance 151.6 1.7 (153.3) Other 5.5 (2.4) (5.5) Total income tax benefit (expense) $ 94.9 $ (25.4) $ (143.2) ____________________________ (1) Related to book-to-tax differences recorded upon the vesting of unit-based awards. |
Schedule of Deferred Tax Assets and Liabilities | Our deferred income tax assets and liabilities as of December 31, 2022 and 2021 are as follows (in millions): December 31, 2022 December 31, 2021 Deferred income tax assets: Federal net operating loss carryforward $ 636.5 $ 573.6 State net operating loss carryforward 77.6 59.6 Total deferred tax assets, gross 714.1 633.2 Valuation allowance — (151.6) Total deferred tax assets, net of valuation allowance 714.1 481.6 Deferred tax liabilities: Property, plant, equipment, and intangible assets (1) (816.8) (619.1) Interest deduction limitation (2) 57.6 — Other 2.4 — Total deferred tax liabilities (756.8) (619.1) Deferred tax liability, net $ (42.7) $ (137.5) ____________________________ (1) Includes our investment in ENLK and primarily relates to differences between the book and tax bases of property and equipment . (2) Related to book-to-tax differences between the allowable interest deduction amount under Section 163j of the Internal Revenue Code of 1986, as amended. |
Certain Provisions of the Par_2
Certain Provisions of the Partnership Agreement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Partners' Capital [Abstract] | |
Summary of Distribution Activity | A summary of the distribution activity relating to the Series B Preferred Units during the years ended December 31, 2022, 2021, and 2020 is provided below: Declaration period Distribution Cash distribution Date paid/payable 2022 First Quarter of 2022 — $ 17.5 May 13, 2022 (2) Second Quarter of 2022 — $ 17.3 August 12, 2022 Third Quarter of 2022 — $ 17.3 November 14, 2022 Fourth Quarter of 2022 — $ 17.3 February 13, 2023 2021 First Quarter of 2021 150,871 $ 17.0 May 14, 2021 Second Quarter of 2021 151,248 $ 17.0 August 13, 2021 Third Quarter of 2021 151,626 $ 17.1 November 12, 2021 Fourth Quarter of 2021 — $ 19.2 February 11, 2022 (1) 2020 First Quarter of 2020 149,371 $ 16.8 May 13, 2020 Second Quarter of 2020 149,745 $ 16.8 August 13, 2020 Third Quarter of 2020 150,119 $ 16.9 November 13, 2020 Fourth Quarter of 2020 150,494 $ 16.9 February 12, 2021 ____________________________ (1) In December 2021 and January 2022, we paid $0.9 million and $1.0 million, respectively, of accrued distributions related to the fourth quarter of 2021 on redeemed Series B Preferred Units. The remaining distribution of $17.3 million related to the fourth quarter of 2021 was paid on February 11, 2022. (2) In January 2022, we paid $0.3 million of accrued distributions related to the first quarter of 2022 on redeemed Series B Preferred Units. The remaining distribution of $17.2 million related to the first quarter of 2022 was paid on May 13, 2022. |
Members' Equity (Tables)
Members' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Limited Partner Unit | As required under ASC 260, Earnings Per Share , unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities for earnings per unit calculations. The following table reflects the computation of basic and diluted earnings per unit for the periods presented (in millions, except per unit amounts): Year Ended December 31, 2022 2021 2020 Distributed earnings allocated to: Common units (1) $ 221.3 $ 192.5 $ 183.5 Unvested restricted units (1) 5.2 4.5 3.1 Total distributed earnings $ 226.5 $ 197.0 $ 186.6 Undistributed income (loss) allocated to: Common units $ 131.7 $ (170.6) $ (598.4) Unvested restricted units 3.1 (4.0) (9.7) Total undistributed income (loss) $ 134.8 $ (174.6) $ (608.1) Net income (loss) attributable to ENLC allocated to: Common units $ 353.0 $ 21.9 $ (414.9) Unvested restricted units 8.3 0.5 (6.6) Total net income (loss) attributable to ENLC $ 361.3 $ 22.4 $ (421.5) Net income (loss) attributable to ENLC per unit: Basic $ 0.76 $ 0.05 $ (0.86) Diluted $ 0.74 $ 0.05 $ (0.86) ____________________________ (1) Represents distribution activity consistent with the distribution activity table below. The following are the unit amounts used to compute the basic and diluted earnings per unit for the periods presented (in millions): Year Ended December 31, 2022 2021 2020 Basic weighted average units outstanding: Weighted average common units outstanding 478.5 488.8 489.3 Diluted weighted average units outstanding: Weighted average basic common units outstanding 478.5 488.8 489.3 Dilutive effect of unvested restricted units (1) 6.8 5.5 — Total weighted average diluted common units outstanding 485.3 494.3 489.3 ____________________________ (1) For the year ended December 31, 2020, all common unit equivalents were antidilutive because a net loss existed for that period. |
Summary of Distribution Activity | A summary of our distribution activity related to the ENLC common units for the years ended December 31, 2022, 2021, and 2020, respectively, is provided below: Declaration period Distribution/unit Date paid/payable 2022 First Quarter of 2022 $ 0.11250 May 13, 2022 Second Quarter of 2022 $ 0.11250 August 12, 2022 Third Quarter of 2022 $ 0.11250 November 14, 2022 Fourth Quarter of 2022 $ 0.12500 February 13, 2023 2021 First Quarter of 2021 $ 0.09375 May 14, 2021 Second Quarter of 2021 $ 0.09375 August 13, 2021 Third Quarter of 2021 $ 0.09375 November 12, 2021 Fourth Quarter of 2021 $ 0.11250 February 11, 2022 2020 First Quarter of 2020 $ 0.09375 May 13, 2020 Second Quarter of 2020 $ 0.09375 August 13, 2020 Third Quarter of 2020 $ 0.09375 November 13, 2020 Fourth Quarter of 2020 $ 0.09375 February 12, 2021 |
Schedule of Repurchase Agreements | The following table summarizes our ENLC common unit repurchase activity for the periods presented (in millions, except for unit amounts): Year Ended December 31, 2022 2021 2020 Publicly held ENLC common units 11,630,351 6,091,001 383,614 ENLC common units held by GIP (1) 6,743,703 — — Total ENLC common units 18,374,054 6,091,001 383,614 Aggregate cost for publicly held ENLC common units $ 111.5 $ 40.1 $ 1.2 Aggregate cost for ENLC common units held by GIP 63.5 — — Total aggregate cost for ENLC common units $ 175.0 $ 40.1 $ 1.2 Average price paid per publicly held ENLC common unit $ 9.59 $ 6.59 $ 3.02 Average price paid per ENLC common unit held by GIP (2) $ 9.42 $ — $ — ____________________________ (1) For the year ended December 31, 2022, the units represent GIP’s pro rata share of the aggregate number of common units repurchased by us under our common unit repurchase program during the period from February 15, 2022 (the date on which the repurchase agreement with GIP was signed) through December 31, 2022. |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Activity Related to Investments in Unconsolidated Affiliates | The following table shows the activity related to our investment in unconsolidated affiliates for the periods indicated (in millions): Year Ended December 31, 2022 2021 2020 GCF Contributions $ 1.5 $ — $ — Distributions $ — $ (3.5) $ (1.6) Equity in income (loss) $ (3.2) $ (9.1) $ 3.0 Cedar Cove JV Distributions $ (0.7) $ (0.4) $ (0.5) Equity in loss $ (1.9) $ (2.4) $ (2.4) Matterhorn JV Contributions $ 64.4 $ — $ — Equity in loss $ (0.5) $ — $ — Total Contributions $ 65.9 $ — $ — Distributions $ (0.7) $ (3.9) $ (2.1) Equity in income (loss) $ (5.6) $ (11.5) $ 0.6 The following table shows the balances related to our investment in unconsolidated affiliates as of December 31, 2022 and 2021 (in millions): December 31, 2022 December 31, 2021 GCF $ 26.3 $ 28.0 Cedar Cove JV (1) (4.4) (1.8) Matterhorn JV 63.9 — Total investment in unconsolidated affiliates $ 85.8 $ 26.2 ___________________________ |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Amounts Recognized in Consolidated Financial Statements | Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions): Year Ended December 31, 2022 2021 2020 Cost of unit-based compensation charged to operating expense $ 5.7 $ 6.6 $ 7.1 Cost of unit-based compensation charged to general and administrative expense 24.7 18.7 21.3 Total unit-based compensation expense $ 30.4 $ 25.3 $ 28.4 Amount of related income tax benefit recognized in net income (loss) (1) $ 7.1 $ 5.9 $ 6.7 ____________________________ |
Summary of Restricted Incentive Unit Activity | A summary of the restricted incentive unit activity for the year ended December 31, 2022 is provided below: Year Ended December 31, 2022 Restricted Incentive Units: Number of Units Weighted Average Grant-Date Fair Value Unvested, beginning of period 7,507,471 $ 5.46 Granted (1) 2,461,950 8.83 Vested (1)(2) (2,615,805) 7.28 Forfeited (578,430) 6.53 Unvested, end of period 6,775,186 $ 5.89 Aggregate intrinsic value, end of period (in millions) $ 83.3 ____________________________ (1) Restricted incentive units typically vest at the end of three years. In March 2022, we granted 193,935 restricted incentive units with a fair value of $1.7 million. These restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. |
Summary of Restricted Units' Aggregate Intrinsic Value | A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2022, 2021, and 2020 is provided below (in millions): Year Ended December 31, Restricted Incentive Units: 2022 2021 2020 Aggregate intrinsic value of units vested $ 24.4 $ 5.6 $ 12.1 Fair value of units vested $ 19.0 $ 16.3 $ 31.5 |
Summary of Grant-Date Fair Values | The following table sets out the levels at which the Tranche TSR Units may vest (using linear interpolation) based on the ENLC TSR percentile ranking for the applicable performance period relative to the TSR achievement of the Designated Peer Companies: Performance Level Achieved ENLC TSR Vesting percentage Below Threshold Less than 25% 0% Threshold Equal to 25% 50% Target Equal to 50% 100% Maximum Greater than or Equal to 75% 200% Performance Level ENLC’s Achieved FCFAD Vesting percentage Below Threshold Less than $154 million 0% Threshold Equal to $154 million 50% Target Equal to $202 million 100% Maximum Greater than or Equal to $241 million 200% The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the FCFAD performance of ENLC for the performance period ending December 31, 2021: Performance Level ENLC’s Achieved FCFAD Vesting percentage Below Threshold Less than $205 million 0% Threshold Equal to $205 million 50% Target Equal to $256 million 100% Maximum Greater than or Equal to $300 million 200% The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the distributable cash flow (“DCF”) performance of ENLC for the performance period ending December 31, 2020: Performance Level ENLC’s Achieved Vesting percentage Below Threshold Less than $1.345 0% Threshold Equal to $1.345 50% Target Equal to $1.494 100% Maximum Greater than or Equal to $1.643 200% The fair value of each performance unit is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all performance unit grants made under the plan: (i) a risk-free interest rate based on United States Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of ENLC’s common units and the Designated Peer Companies’ or Peer Companies’ securities as applicable; (iii) an estimated ranking of ENLC among the Designated Peer Companies or Peer Companies, and (iv) the distribution yield. The fair value of the performance unit on the date of grant is expensed over a vesting period of approximately three years. The following table presents a summary of the grant-date fair value assumptions by performance unit grant date: Performance Units: June 2022 March 2022 (1) January 2021 July 2020 March 2020 January 2020 Grant-date fair value $ 11.71 $ 11.90 $ 4.70 $ 2.33 $ 1.13 $ 7.69 Beginning TSR price $ 8.54 $ 8.83 $ 3.71 $ 2.52 $ 1.25 $ 6.13 Risk-free interest rate 3.35 % 2.15 % 0.17 % 0.17 % 0.42 % 1.62 % Volatility factor 76.00 % 75.00 % 71.00 % 67.00 % 51.00 % 37.00 % ____________________________ (1) Excludes certain performance units awarded March 1, 2022 with vesting conditions based on performance metrics. The 88,863 performance units have a grant-date fair value of $8.90 and were scheduled to vest in February 2023. However, this award partially vested in October 2022 and is reflected in the “Vested” row of the summary of the performance units table below. |
Summary of Performance Units | The following table presents a summary of the performance units: Year Ended December 31, 2022 Performance Units: Number of Units Weighted Average Grant-Date Fair Value Unvested, beginning of period 3,574,827 $ 6.40 Granted 1,204,882 11.60 Vested (1) (1,480,802) 9.32 Forfeited (319,753) 12.11 Unvested, end of period 2,979,154 $ 6.44 Aggregate intrinsic value, end of period (in millions) $ 36.6 ____________________________ (1) Vested units included 806,918 ENLC common units withheld for payroll taxes paid on behalf of employees. A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2022, 2021, and 2020 is provided below (in millions). Year Ended December 31, Performance Units: 2022 2021 2020 Aggregate intrinsic value of units vested $ 20.4 $ 0.6 $ 0.9 Fair value of units vested $ 26.2 $ 4.4 $ 5.5 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swaps | During 2021 and 2020, we terminated a portion of the interest rate swaps in several increments in connection with repayments of the Term Loan, which was one of our floating-rate, LIBOR-based borrowings, and the remaining interest rate swaps expired on December 10, 2021. The following table presents the interest rate swaps terminations and the associated cash payments during 2021 and 2020 (in millions): Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 |
Components of Gain (Loss) on Derivative Activity | The components of the unrealized gain (loss) on designated cash flow hedge related to changes in the fair value of our interest rate swaps were as follows (in millions): Year Ended December 31, 2022 2021 2020 Change in fair value of interest rate swaps $ 1.9 $ 18.2 $ (5.6) Tax benefit (expense) (0.5) (4.3) 1.3 Unrealized gain (loss) on designated cash flow hedge $ 1.4 $ 13.9 $ (4.3) The interest expense, recognized from accumulated other comprehensive loss from the monthly settlement of our interest rate swaps and amortization of the termination payments, included in our consolidated statements of operations were as follows (in millions): Year Ended December 31, 2022 2021 2020 Interest expense $ 1.9 $ 18.3 $ 14.5 The components of gain (loss) on derivative activity in the consolidated statements of operations related to commodity derivatives are (in millions): Year Ended December 31, 2022 2021 2020 Change in fair value of derivatives $ 40.2 $ (12.4) $ (10.5) Realized loss on derivatives (25.9) (146.7) (11.5) Gain (loss) on derivative activity $ 14.3 $ (159.1) $ (22.0) |
Fair Value of Derivative Assets and Liabilities Related to Commodity Swaps | The fair value of derivative assets and liabilities related to commodity derivatives are as follows (in millions): December 31, 2022 December 31, 2021 Fair value of derivative assets—current $ 68.4 $ 22.4 Fair value of derivative assets—long-term 2.9 0.2 Fair value of derivative liabilities—current (42.9) (34.9) Fair value of derivative liabilities—long-term (2.7) (2.2) Net fair value of commodity derivatives $ 25.7 $ (14.5) |
Notional Amount and Fair Value of Derivative Instruments | Set forth below are the summarized notional volumes and fair values of all instruments related to commodity derivatives that we held for price risk management purposes and the related physical offsets at December 31, 2022 (in millions, except volumes). The remaining term of the contracts extend no later than January 2027. December 31, 2022 Commodity Instruments Unit Volume Net Fair Value NGL (short contracts) Swaps MMgals (138.4) $ 14.5 Natural gas (short contracts) Swaps and futures Bbtu (52.2) 40.9 Natural gas (long contracts) Swaps and futures Bbtu 25.7 (29.1) Crude and condensate (short contracts) Swaps and futures MMbbls (5.5) 2.7 Crude and condensate (long contracts) Swaps and futures MMbbls 1.6 (3.3) Total fair value of commodity derivatives $ 25.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Net Assets (Liabilities) Measured on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions): Level 2 December 31, 2022 December 31, 2021 Commodity derivatives (1) $ 25.7 $ (14.5) ____________________________ |
Schedule of the Estimated Fair Value of Financial Instruments | Considerable judgment is required to develop the estimates of fair value; thus, the estimates provided below are not necessarily indicative of the amount we could realize upon the sale or refinancing of such financial instruments (in millions): December 31, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value Long-term debt (1) $ 4,723.5 $ 4,385.9 $ 4,363.7 $ 4,520.0 Installment payable (2) $ — $ — $ 10.0 $ 10.0 Contingent consideration (2)(3) $ 5.5 $ 5.5 $ 6.9 $ 6.9 ____________________________ (1) The carrying value of long-term debt is reduced by debt issuance cost, net of accumulated amortization, of $34.9 million and $27.8 million as of December 31, 2022 and 2021, respectively. The respective fair values do not factor in debt issuance costs. (2) Consideration for the Amarillo Rattler Acquisition included a $10.0 million installment payable, which was paid on April 30, 2022, and a contingent component capped at $15.0 million and payable, if at all, between 2024 and 2026 based on Diamondback E&P LLC’s drilling activity above historical levels. Estimated fair values were calculated using a discounted cash flow analysis that utilized Level 3 inputs. (3) Consideration for the Central Oklahoma Acquisition included an earnout payable, if at all, between 2024 and 2027 based on fee revenue earned on certain contractually specified volumes for the annual periods beginning January 1, 2023 through December 31, 2026. As of December 31, 2022, we recorded a $1.3 million liability related to the earnout. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Financial Information | Summarized financial information for our reportable segments is shown in the following tables (in millions): Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2022 Natural gas sales $ 1,078.7 $ 1,128.4 $ 367.5 $ 139.0 $ — $ 2,713.6 NGL sales (1.5) 4,196.6 10.8 1.4 — 4,207.3 Crude oil and condensate sales 1,158.6 350.0 135.4 — — 1,644.0 Product sales 2,235.8 5,675.0 513.7 140.4 — 8,564.9 NGL sales—related parties 1,495.6 97.7 774.6 543.6 (2,911.5) — Crude oil and condensate sales—related parties — — 0.3 12.3 (12.6) — Product sales—related parties 1,495.6 97.7 774.9 555.9 (2,924.1) — Gathering and transportation 72.6 75.5 187.5 185.7 — 521.3 Processing 39.2 1.5 119.7 125.9 — 286.3 NGL services — 82.0 — 0.2 — 82.2 Crude services 21.4 33.3 14.9 0.7 — 70.3 Other services 0.8 1.6 (0.3) 0.7 — 2.8 Midstream services 134.0 193.9 321.8 313.2 — 962.9 NGL services—related parties — — — 1.6 (1.6) — Crude services—related parties — — 0.1 — (0.1) — Other services—related parties — 0.2 — — (0.2) — Midstream services—related parties — 0.2 0.1 1.6 (1.9) — Revenue from contracts with customers 3,865.4 5,966.8 1,610.5 1,011.1 (2,926.0) 9,527.8 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (3,280.3) (5,462.4) (1,124.4) (631.7) 2,926.0 (7,572.8) Realized gain (loss) on derivatives (9.0) 2.9 (13.1) (6.7) — (25.9) Change in fair value of derivatives 9.6 7.7 5.6 17.3 — 40.2 Adjusted gross margin 585.7 515.0 478.6 390.0 — 1,969.3 Operating expenses (200.2) (140.7) (90.9) (93.1) — (524.9) Segment profit 385.5 374.3 387.7 296.9 — 1,444.4 Depreciation and amortization (154.5) (156.5) (201.8) (121.1) (5.5) (639.4) Gain (loss) on disposition of assets 0.1 (13.8) 0.5 (4.8) — (18.0) General and administrative — — — — (125.2) (125.2) Interest expense, net of interest income — — — — (245.0) (245.0) Loss on extinguishment of debt — — — — (6.2) (6.2) Loss from unconsolidated affiliate investments — — — — (5.6) (5.6) Other income — — — — 0.8 0.8 Income (loss) before non-controlling interest and income taxes $ 231.1 $ 204.0 $ 186.4 $ 171.0 $ (386.7) $ 405.8 Capital expenditures $ 210.2 $ 33.7 $ 63.8 $ 22.8 $ 7.1 $ 337.6 ____________________________ (1) Includes related party cost of sales of $28.2 million for the year ended December 31, 2022. Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2021 Natural gas sales $ 609.4 $ 693.5 $ 213.4 $ 150.0 $ — $ 1,666.3 NGL sales 0.9 3,353.1 2.0 1.1 — 3,357.1 Crude oil and condensate sales 677.4 212.0 81.2 — — 970.6 Product sales 1,287.7 4,258.6 296.6 151.1 — 5,994.0 NGL sales—related parties 1,008.4 129.7 630.8 447.0 (2,215.9) — Crude oil and condensate sales—related parties — — 0.1 7.1 (7.2) — Product sales—related parties 1,008.4 129.7 630.9 454.1 (2,223.1) — Gathering and transportation 46.8 64.7 186.9 157.0 — 455.4 Processing 29.1 2.4 98.7 108.3 — 238.5 NGL services — 82.6 — 0.3 — 82.9 Crude services 18.4 39.3 12.8 0.7 — 71.2 Other services 0.2 1.7 0.6 0.5 — 3.0 Midstream services 94.5 190.7 299.0 266.8 — 851.0 Crude services—related parties — — 0.3 — (0.3) — Other services—related parties — 2.4 — — (2.4) — Midstream services—related parties — 2.4 0.3 — (2.7) — Revenue from contracts with customers 2,390.6 4,581.4 1,226.8 872.0 (2,225.8) 6,845.0 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (1,996.1) (4,091.2) (796.6) (531.8) 2,225.8 (5,189.9) Realized loss on derivatives (75.6) (42.3) (22.6) (6.2) — (146.7) Change in fair value of derivatives (7.7) 0.7 — (5.4) — (12.4) Adjusted gross margin 311.2 448.6 407.6 328.6 — 1,496.0 Operating expenses (81.5) (123.7) (80.0) (77.7) — (362.9) Segment profit 229.7 324.9 327.6 250.9 — 1,133.1 Depreciation and amortization (139.9) (141.0) (204.3) (114.3) (8.0) (607.5) Impairments — (0.6) — — (0.2) (0.8) Gain on disposition of assets — 1.2 — 0.3 — 1.5 General and administrative — — — — (107.8) (107.8) Interest expense, net of interest income — — — — (238.7) (238.7) Loss from unconsolidated affiliate investments — — — — (11.5) (11.5) Income (loss) before non-controlling interest and income taxes $ 89.8 $ 184.5 $ 123.3 $ 136.9 $ (366.2) $ 168.3 Capital expenditures $ 141.6 $ 9.3 $ 30.4 $ 11.9 $ 2.8 $ 196.0 ____________________________ (1) Includes related party cost of sales of $17.9 million for the year ended December 31, 2021. Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2020 Natural gas sales $ 150.1 $ 330.5 $ 153.1 $ 70.3 $ — $ 704.0 NGL sales 0.2 1,545.4 2.8 — — 1,548.4 Crude oil and condensate sales 558.1 126.7 40.3 — — 725.1 Product sales 708.4 2,002.6 196.2 70.3 — 2,977.5 NGL sales—related parties 312.6 31.4 296.4 115.2 (755.6) — Crude oil and condensate sales—related parties 0.6 — (0.1) 3.6 (4.1) — Product sales—related parties 313.2 31.4 296.3 118.8 (759.7) — Gathering and transportation 42.8 46.5 228.7 179.2 — 497.2 Processing 24.1 2.0 123.6 132.6 — 282.3 NGL services — 75.8 — 0.2 — 76.0 Crude services 16.8 45.2 16.5 0.2 — 78.7 Other services 1.2 1.6 0.4 0.9 — 4.1 Midstream services 84.9 171.1 369.2 313.1 — 938.3 Crude services—related parties — — 0.3 — (0.3) — Midstream services—related parties — — 0.3 — (0.3) — Revenue from contracts with customers 1,106.5 2,205.1 862.0 502.2 (760.0) 3,915.8 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (842.2) (1,787.0) (365.5) (153.8) 760.0 (2,388.5) Realized loss on derivatives (1.1) (6.0) (4.4) — — (11.5) Change in fair value of derivatives 1.1 (6.5) (4.5) (0.6) — (10.5) Adjusted gross margin 264.3 405.6 487.6 347.8 — 1,505.3 Operating expenses (94.2) (120.0) (82.2) (77.4) — (373.8) Segment profit 170.1 285.6 405.4 270.4 — 1,131.5 Depreciation and amortization (125.2) (145.8) (216.9) (143.4) (7.3) (638.6) Impairments (184.6) (170.0) (0.7) — (7.5) (362.8) Gain (loss) on disposition of assets (11.2) 0.1 0.3 2.0 — (8.8) General and administrative — — — — (103.3) (103.3) Interest expense, net of interest income — — — — (223.3) (223.3) Gain on extinguishment of debt — — — — 32.0 32.0 Income from unconsolidated affiliate investments — — — — 0.6 0.6 Other income — — — — 0.3 0.3 Income (loss) before non-controlling interest and income taxes $ (150.9) $ (30.1) $ 188.1 $ 129.0 $ (308.5) $ (172.4) Capital expenditures $ 181.1 $ 44.6 $ 17.9 $ 16.9 $ 2.1 $ 262.6 ____________________________ (1) Includes related party cost of sales of $8.7 million for the year ended December 31, 2020. |
Schedule of Segment Assets | The table below represents information about segment assets as of December 31, 2022 and 2021 (in millions): Segment Identifiable Assets: December 31, 2022 December 31, 2021 Permian $ 2,661.4 $ 2,358.6 Louisiana 2,310.7 2,428.6 Oklahoma 2,420.4 2,619.5 North Texas 1,094.6 896.8 Corporate (1) 163.9 179.7 Total identifiable assets $ 8,651.0 $ 8,483.2 ____________________________ |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Non-Cash Financing Activities | The following schedule summarizes cash paid for interest, cash paid (refunded) for income taxes, cash paid for operating leases included in cash flows from operating activities, non-cash investing activities, and non-cash financing activities for the periods presented (in millions): Year Ended December 31, Supplemental disclosures of cash flow information: 2022 2021 2020 Cash paid for interest $ 221.1 $ 208.8 $ 207.3 Cash paid (refunded) for income taxes $ 0.7 $ 0.3 $ (0.7) Cash paid for operating leases included in cash flows from operating activities $ 30.5 $ 24.6 $ 24.6 Non-cash investing activities: Non-cash accrual of property and equipment $ 4.2 $ 12.0 $ (39.6) Non-cash right-of-use assets obtained in exchange for operating lease liabilities $ 33.4 $ 18.7 $ 9.8 Non-cash acquisitions $ 1.3 $ 16.9 $ — Non-cash financing activities: Receivable from sale of VEX $ — $ — $ 10.0 Redemption of mandatorily redeemable non-controlling interest $ (6.5) $ — $ (4.0) |
Other Information (Tables)
Other Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Assets | The following tables present additional detail for other current assets and other current liabilities, which consists of the following (in millions): Other current assets: December 31, 2022 December 31, 2021 Natural gas and NGLs inventory $ 147.1 $ 49.4 Prepaid expenses and other 19.5 34.2 Other current assets $ 166.6 $ 83.6 |
Schedule of Other Current Liabilities | Other current liabilities: December 31, 2022 December 31, 2021 Accrued interest $ 57.6 $ 47.2 Accrued wages and benefits, including taxes 38.1 33.1 Accrued ad valorem taxes 32.0 28.3 Accrued settlement of mandatorily redeemable non-controlling interest 10.5 — Capital expenditure accruals 23.4 23.2 Short-term lease liability 26.2 18.1 Installment payable (1) — 10.0 Inactive easement commitment (2) — 9.8 Operating expense accruals 18.5 9.6 Other 23.3 23.6 Other current liabilities $ 229.6 $ 202.9 ____________________________ (1) Consideration for the Amarillo Rattler Acquisition included an installment payable, which was paid on April 30, 2022. |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) bbl in Thousands | 12 Months Ended |
Dec. 31, 2022 Bcf / d fractionator processingPlant mi bbl | |
Related Party Transaction [Line Items] | |
Number of miles of pipeline | mi | 13,600 |
Number of natural gas processing plants | processingPlant | 26 |
Amount of processing capacity | Bcf / d | 6 |
Number of fractionators | fractionator | 7 |
Capacity of fractionators per day, barrels | bbl | 320 |
ENLC | GIP Stetson II | |
Related Party Transaction [Line Items] | |
Membership interest in the General Partner as a percent | 41.60% |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Derivative, notional amount | $ 850,000,000 | ||||
Derivative, fixed interest rate | 2.28% | ||||
Interest Rate Swaps Terminations | $ 850,000,000 | $ 850,000,000 | |||
Allowance for doubtful accounts receivable | 100,000 | 100,000 | $ 300,000 | ||
Environmental remediation expense | 0 | 0 | $ 0 | ||
Debt issuance costs, noncurrent, net | 34,900,000 | 34,900,000 | 27,800,000 | ||
Interest expense | 245,000,000 | 238,700,000 | 223,300,000 | ||
Redeemable Non-controlling interest (Temporary Equity) | |||||
Property, Plant and Equipment [Line Items] | |||||
Partners' capital account, redemptions | 10,500,000 | ||||
Partners' capital account, redemption liability, current | 10,500,000 | 10,500,000 | (4,000,000) | ||
Partners' capital account, increase (decrease) in redemption liability, current | 6,500,000 | ||||
Interest expense | 6,500,000 | ||||
Louisiana | |||||
Property, Plant and Equipment [Line Items] | |||||
Interest expense | $ 0 | 0 | $ 0 | ||
Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Intangible asset, useful life | 10 years | ||||
Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Intangible asset, useful life | 20 years | ||||
EnLink Midstream Partners, LP | |||||
Property, Plant and Equipment [Line Items] | |||||
Gas balancing payable | 17,300,000 | $ 17,300,000 | 16,300,000 | ||
Gas balancing receivable | $ 20,200,000 | $ 20,200,000 | $ 14,500,000 | ||
Delaware Basin JV | NPG | |||||
Property, Plant and Equipment [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 49.90% | 49.90% | |||
Ascension JV | Marathon Petroleum Corporation | |||||
Property, Plant and Equipment [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 50% | 50% |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Remaining Performance Obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 1,422.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 135 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 103.8 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 91.7 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 90.7 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 74.9 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 926.5 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Significant Accounting Polici_6
Significant Accounting Policies - Components of Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 11,330.5 | $ 10,720.3 |
Accumulated depreciation | (4,774.5) | (4,332) |
Property and equipment, net of accumulated depreciation | 6,556 | 6,388.3 |
Transmission assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,452 | 1,442.2 |
Transmission assets | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 20 years | |
Transmission assets | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Gathering systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 5,370 | 4,903.8 |
Gathering systems | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 20 years | |
Gathering systems | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Gas processing plants and fractionation facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 4,237.8 | 4,119.1 |
Gas processing plants and fractionation facilities | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 20 years | |
Gas processing plants and fractionation facilities | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Other property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 165 | 161 |
Other property and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Other property and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 105.7 | $ 94.2 |
Significant Accounting Polici_7
Significant Accounting Policies - (Gain) Loss on Disposition of Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Net book value of assets disposed | $ 30.8 | $ 3.3 | $ 36.4 |
Proceeds from sales | (12.8) | (4.8) | (27.6) |
(Gain) loss on disposition of assets | $ 18 | $ (1.5) | $ 8.8 |
Significant Accounting Polici_8
Significant Accounting Policies - Property and Equipement Impairment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment impairment | $ 0 | ||
Louisiana | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment impairment | $ 600,000 | $ 168,000,000 | |
Certain Cancelled Projects | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment impairment | $ 3,400,000 |
Significant Accounting Polici_9
Significant Accounting Policies - Interest Rate Swaps (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Derivatives | |
Interest Rate Swaps Terminations | $ 850 |
Cash Payments Associated with Interest Rate Swaps Terminations | 12.7 |
December 2021 | |
Derivatives | |
Interest Rate Swaps Terminations | 150 |
Cash Payments Associated with Interest Rate Swaps Terminations | 0 |
September 2021 | |
Derivatives | |
Interest Rate Swaps Terminations | 100 |
Cash Payments Associated with Interest Rate Swaps Terminations | 0.5 |
May 2021 | |
Derivatives | |
Interest Rate Swaps Terminations | 100 |
Cash Payments Associated with Interest Rate Swaps Terminations | 1.3 |
December 2020 | |
Derivatives | |
Interest Rate Swaps Terminations | 500 |
Cash Payments Associated with Interest Rate Swaps Terminations | $ 10.9 |
Significant Accounting Polic_10
Significant Accounting Policies - Schedule of Revenue Concentration Risk (Details) - Customer Concentration Risk - Sales Revenue, Net | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Devon | |||
Concentration Risk [Line Items] | |||
Concentration risk | 6.40% | 6.70% | 14.40% |
Dow Hydrocarbons and Resources LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk | 14.20% | 14.50% | 13.20% |
Marathon Petroleum Corporation | |||
Concentration Risk [Line Items] | |||
Concentration risk | 14.70% | 13.40% | 12.20% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) | Dec. 19, 2022 USD ($) | Jul. 01, 2022 USD ($) MMcf / d plant mi | Apr. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) Bcf / d mi | Apr. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||
Installment payable | $ 0 | $ 0 | $ 10,000,000 | ||||
Number of miles of pipeline | mi | 13,600 | ||||||
Amount of processing capacity | Bcf / d | 6 | ||||||
Amarillo Rattler, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses | $ 50,000,000 | ||||||
Installment payable | 10,000,000 | $ 10,000,000 | |||||
Business combination, maximum earnout | 15,000,000 | $ 15,000,000 | |||||
Contingent consideration fair value | $ 6,900,000 | ||||||
Crestwood Gas Services Operating LLC | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses | $ 275,000,000 | ||||||
Working capital | $ 14,500,000 | ||||||
Number of miles of pipeline | mi | 400 | ||||||
Number of processing plants | plant | 3 | ||||||
Amount of processing capacity | MMcf / d | 425 | ||||||
Direct transaction costs recognized as expense | $ 400,000 | ||||||
Recognized revenue | 39,600,000 | ||||||
Net gain (loss) related to assets acquired | 24,100,000 | ||||||
Central Oklahoma Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses | $ 95,800,000 | ||||||
Working capital | $ 4,900,000 | ||||||
Contingent consideration | 1,300,000 | 1,300,000 | |||||
Number of miles of pipeline | mi | 900 | ||||||
Number of processing plants | plant | 2 | ||||||
Amount of processing capacity | MMcf / d | 280 | ||||||
Direct transaction costs recognized as expense | 500,000 | ||||||
Recognized revenue | 1,700,000 | ||||||
Net gain (loss) related to assets acquired | $ 600,000 | ||||||
Contingent consideration fair value | $ 1,300,000 |
Acquisitions - Fair Value of As
Acquisitions - Fair Value of Assets Received and Liabilities Assumed (Details) - USD ($) $ in Millions | Jul. 01, 2022 | Apr. 30, 2021 |
Assets acquired: | ||
Intangible assets | $ 50.6 | |
Other assets, net | 0.6 | |
Liabilities assumed: | ||
Other long-term liabilities | (0.6) | |
Amarillo Rattler, LLC | ||
Consideration | ||
Cash (including working capital payment) | 50.6 | |
Installment payable | 10 | |
Contingent consideration fair value | 6.9 | |
Total consideration | 67.5 | |
Assets acquired: | ||
Current assets | 1.4 | |
Property and equipment | 16.3 | |
Liabilities assumed: | ||
Current liabilities | (0.8) | |
Net assets acquired | 67.5 | |
Cash acquired | $ 1.3 | |
Crestwood Gas Services Operating LLC | ||
Consideration | ||
Cash (including working capital payment) | $ 289.5 | |
Assets acquired: | ||
Current assets | 17.3 | |
Property and equipment | 275 | |
Liabilities assumed: | ||
Current liabilities | (2.8) | |
Net assets acquired | $ 289.5 |
Acquisitions - Amarillo Acquisi
Acquisitions - Amarillo Acquisition (Details) - Amarillo Rattler, LLC - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combination, Contingent Consideration, Liability [Roll Forward] | ||
Contingent consideration liability, beginning of period | $ 6.9 | $ 6.9 |
Change in fair value | (2.7) | 0 |
Contingent consideration liability, end of period | $ 4.2 | $ 6.9 |
Acquisitions - Pro Forma (Detai
Acquisitions - Pro Forma (Details) - Crestwood Gas Services Operating LLC - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Pro forma total revenues | $ 9,630.4 | $ 6,782.9 |
Pro forma net income | $ 534.3 | $ 157.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 0 | |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 10 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 20 years | |
Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, weighted average remaining amortization period | 14 years 10 months 24 days | |
Operating Segments | Permian | EnLink Midstream Partners, LP | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill impairment loss recognized | $ 184,600,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Carrying Value of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Accumulated amortization, beginning of period | $ (795.1) | ||
Customer relationships obtained from acquisition of business | $ 50.6 | ||
Retirements, gross carrying amount | $ (1.6) | ||
Retirements, accumulated amortization | 0.6 | ||
Retirements, net carrying amount | (1) | ||
Accumulated amortization, end of period | (923.6) | (795.1) | |
EnLink Midstream Partners, LP | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Customer relationships, end of period, net | 921.2 | ||
Customer Relationships | EnLink Midstream Partners, LP | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Customer relationships, beginning of period, gross | 1,844.8 | 1,794.2 | 1,795.8 |
Accumulated amortization, beginning of period | (795.1) | (668.8) | (545.9) |
Customer relationships, beginning of period, net | 1,049.7 | 1,125.4 | 1,249.9 |
Amortization expense | (128.5) | (126.3) | (123.5) |
Customer relationships, end of period, gross | 1,844.8 | 1,844.8 | 1,794.2 |
Accumulated amortization, end of period | (923.6) | (795.1) | (668.8) |
Customer relationships, end of period, net | $ 921.2 | $ 1,049.7 | $ 1,125.4 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense (Details) - EnLink Midstream Partners, LP $ in Millions | Dec. 31, 2022 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2023 | $ 127.6 |
2024 | 127.6 |
2025 | 110.2 |
2026 | 106.3 |
2027 | 106.3 |
Thereafter | 343.2 |
Total | $ 921.2 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Related Party Transaction [Line Items] | |||||
Cost of sales | [1] | $ 7,572,800,000 | $ 5,189,900,000 | $ 2,388,500,000 | |
Accounts payable, related parties | 2,500,000 | 1,600,000 | |||
Cedar Cove Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable, related parties | 2,500,000 | 1,600,000 | |||
Cedar Cove Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Cost of sales | 28,200,000 | 17,900,000 | 8,700,000 | ||
GIP | |||||
Related Party Transaction [Line Items] | |||||
Selling, general and administrative expenses, related party | $ 500,000 | $ 200,000 | $ 0 | ||
CyrusOne | |||||
Related Party Transaction [Line Items] | |||||
Fees for data center services | $ 200,000 | ||||
[1]Includes related party cost of sales of $28.2 million, $17.9 million, and $8.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Lease liability | $ 92.4 | ||
Right-of-use assets | 69.5 | $ 60.1 | |
Impairments | 0 | 0.2 | $ 6.8 |
Office Lease | |||
Lessee, Lease, Description [Line Items] | |||
Lease liability | 46.2 | 51.8 | |
Right-of-use assets | 24.2 | 27.9 | |
Compression and Other Field Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease liability | 30.6 | 17.7 | |
Right-of-use assets | 33 | 19.5 | |
Land | |||
Lessee, Lease, Description [Line Items] | |||
Lease liability | 15.6 | 15.6 | |
Right-of-use assets | $ 12.3 | 12.6 | |
Office Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease liability | 0.1 | ||
Right-of-use assets | $ 0.1 | ||
Minimum | Compression and Other Field Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 1 year | ||
Maximum | Compression and Other Field Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 3 years |
Leases - Leases Balances on Con
Leases - Leases Balances on Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Other assets, net | $ 69.5 | $ 60.1 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Other current liabilities | $ 26.2 | $ 18.1 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Other long-term liabilities | $ 66.2 | $ 67.1 |
Other lease information | ||
Weighted-average remaining lease term—Operating leases | 8 years 8 months 12 days | 10 years 3 months 18 days |
Weighted-average discount rate—Operating leases | 4.70% | 4.90% |
Leases - Components of Total Le
Leases - Components of Total Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating lease expense: | |||
Long-term operating lease expense | $ 28.2 | $ 21.7 | $ 23.1 |
Short-term lease expense | 34.3 | 17.5 | 22.1 |
Variable lease expense | 18.8 | 15.6 | 11.8 |
Impairments | 0 | 0.2 | 6.8 |
Total lease expense, before sublease income | 81.3 | 55 | 63.8 |
Sublease income | (1.1) | 0 | 0 |
Total lease expense, net of sublease income | $ 80.2 | $ 55 | $ 63.8 |
Leases - Maturity (Details)
Leases - Maturity (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Undiscounted operating lease liability | |
Total | $ 119.9 |
2023 | 29.2 |
2024 | 18.3 |
2025 | 12.9 |
2026 | 8.9 |
2027 | 8.1 |
Thereafter | 42.5 |
Reduction due to present value | |
Total | (27.5) |
2023 | (3.7) |
2024 | (3.1) |
2025 | (2.5) |
2026 | (2) |
2027 | (1.7) |
Thereafter | (14.5) |
Operating Lease, Liability [Abstract] | |
Total | 92.4 |
2023 | 25.5 |
2024 | 15.2 |
2025 | 10.4 |
2026 | 6.9 |
2027 | 6.4 |
Thereafter | $ 28 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument | ||
Outstanding Principal | $ 4,764.2 | $ 4,397.3 |
Premium (Discount) | (5.8) | (5.8) |
Long-Term Debt | 4,758.4 | 4,391.5 |
Debt issuance costs | (34.9) | (27.8) |
Long-term debt, net of unamortized issuance cost | 4,723.5 | 4,363.7 |
Debt issuance cost accumulated amortization | 15.1 | 18.4 |
Credit Facility Due 2024 | ||
Debt Instrument | ||
Outstanding Principal | 255 | 15 |
Premium (Discount) | 0 | 0 |
Long-Term Debt | $ 255 | $ 15 |
Effective interest rate | 6.50% | 3.90% |
AR Facility due 2025 | ||
Debt Instrument | ||
Outstanding Principal | $ 500 | $ 350 |
Premium (Discount) | 0 | 0 |
Long-Term Debt | $ 500 | $ 350 |
Effective interest rate | 5.30% | 1.20% |
4.4% Senior Notes due 2024 | ||
Debt Instrument | ||
Stated interest rate | 4.40% | |
Outstanding Principal | $ 97.9 | $ 521.8 |
Premium (Discount) | 0 | 0.7 |
Long-Term Debt | $ 97.9 | 522.5 |
4.15% Senior Notes due 2025 | ||
Debt Instrument | ||
Stated interest rate | 4.15% | |
Outstanding Principal | $ 421.6 | 720.8 |
Premium (Discount) | (0.1) | (0.4) |
Long-Term Debt | $ 421.5 | 720.4 |
4.85 Senior Unsecured Notes Due 2026 | ||
Debt Instrument | ||
Stated interest rate | 4.85% | |
Outstanding Principal | $ 491 | 491 |
Premium (Discount) | (0.2) | (0.3) |
Long-Term Debt | $ 490.8 | 490.7 |
5.625% Senior unsecured notes due 2028 | ||
Debt Instrument | ||
Stated interest rate | 5.625% | |
Outstanding Principal | $ 500 | 500 |
Premium (Discount) | 0 | 0 |
Long-Term Debt | $ 500 | 500 |
5.375% Senior unsecured notes due 2029 | ||
Debt Instrument | ||
Stated interest rate | 5.375% | |
Outstanding Principal | $ 498.7 | 498.7 |
Premium (Discount) | 0 | 0 |
Long-Term Debt | $ 498.7 | 498.7 |
6.50% Senior unsecured notes due 2030 | ||
Debt Instrument | ||
Stated interest rate | 6.50% | |
Outstanding Principal | $ 700 | 0 |
Premium (Discount) | 0 | 0 |
Long-Term Debt | $ 700 | 0 |
5.6% Senior Notes due 2044 | ||
Debt Instrument | ||
Stated interest rate | 5.60% | |
Outstanding Principal | $ 350 | 350 |
Premium (Discount) | (0.2) | (0.2) |
Long-Term Debt | $ 349.8 | 349.8 |
5.05 Senior Notes due 2045 | ||
Debt Instrument | ||
Stated interest rate | 5.05% | |
Outstanding Principal | $ 450 | 450 |
Premium (Discount) | (5.2) | (5.5) |
Long-Term Debt | $ 444.8 | 444.5 |
Senior Unsecured Notes, 5.45%, Due 2047 | ||
Debt Instrument | ||
Stated interest rate | 5.45% | |
Outstanding Principal | $ 500 | 500 |
Premium (Discount) | (0.1) | (0.1) |
Long-Term Debt | $ 499.9 | $ 499.9 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 0 | |
2024 | 97.9 | |
2025 | 921.6 | |
2026 | 491 | |
2027 | 255 | |
Thereafter | 2,998.7 | |
Subtotal | 4,764.2 | $ 4,397.3 |
Less: net discount | (5.8) | (5.8) |
Less: debt issuance cost | (34.9) | (27.8) |
Long-term debt, net of unamortized issuance cost | $ 4,723.5 | $ 4,363.7 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 USD ($) | Aug. 31, 2022 USD ($) | Aug. 01, 2022 USD ($) | Jun. 03, 2022 USD ($) | Jun. 02, 2022 USD ($) | Sep. 24, 2021 USD ($) | Feb. 26, 2021 USD ($) | Dec. 14, 2020 USD ($) | Oct. 21, 2020 | Dec. 11, 2018 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 31, 2022 USD ($) | |
Debt Instrument | |||||||||||||||
(Gain) loss on extinguishment of debt | $ 6,200,000 | $ 0 | $ (32,000,000) | ||||||||||||
Increase in accounts receivable due to consolidation | 678,500,000 | ||||||||||||||
Subtotal | $ 4,764,200,000 | $ 4,764,200,000 | $ 4,764,200,000 | 4,397,300,000 | |||||||||||
Repurchase price as a percent of principal | 101% | 101% | 101% | ||||||||||||
Proceeds from issuance of long-term debt | $ 494,700,000 | $ 4,911,500,000 | 1,234,500,000 | $ 1,650,000,000 | |||||||||||
Amarillo Rattler, LLC | |||||||||||||||
Debt Instrument | |||||||||||||||
Payments to acquire gathering and processing system | $ 50,000,000 | ||||||||||||||
Line of Credit | Asset-backed Securities | |||||||||||||||
Debt Instrument | |||||||||||||||
Line of credit facility, increase in period | $ 50,000,000 | $ 50,000,000 | |||||||||||||
Maximum borrowing capacity | $ 500,000,000 | $ 500,000,000 | $ 350,000,000 | $ 300,000,000 | 500,000,000 | 500,000,000 | $ 350,000,000 | ||||||||
Drawn fee percentage | 0.90% | 1.10% | 1.25% | 1.625% | |||||||||||
Long-term line of credit | $ 500,000,000 | 500,000,000 | 500,000,000 | ||||||||||||
LIBOR | Line of Credit | Minimum | Asset-backed Securities | |||||||||||||||
Debt Instrument | |||||||||||||||
Variable rate | 0% | 0.375% | |||||||||||||
Secured Overnight Financing Rate (SOFR) | Line of Credit | Asset-backed Securities | |||||||||||||||
Debt Instrument | |||||||||||||||
Variable rate | 0.10% | ||||||||||||||
ENLK Credit Facility | |||||||||||||||
Debt Instrument | |||||||||||||||
(Gain) loss on extinguishment of debt | $ 500,000 | ||||||||||||||
Additional amount available (not to exceed) | 1,400,000,000 | $ 1,750,000,000 | |||||||||||||
Modification limit | 50,000,000 | ||||||||||||||
Financing receivables | $ 500,000,000 | $ 350,000,000 | |||||||||||||
Basis spread on variable rate, adjustment limit | 0.05% | ||||||||||||||
Commitment fee percentage, adjustment limit | 0.02% | ||||||||||||||
Fair value of amount outstanding | $ 255,000,000 | 255,000,000 | 255,000,000 | ||||||||||||
ENLK Credit Facility | Letter of Credit | ENLC | |||||||||||||||
Debt Instrument | |||||||||||||||
Fair value of amount outstanding | 43,600,000 | 43,600,000 | $ 43,600,000 | ||||||||||||
ENLK Credit Facility | LIBOR | Maximum | EnLink Midstream Partners, LP | |||||||||||||||
Debt Instrument | |||||||||||||||
Variable rate | 2% | ||||||||||||||
ENLK Credit Facility | LIBOR | Minimum | EnLink Midstream Partners, LP | |||||||||||||||
Debt Instrument | |||||||||||||||
Variable rate | 1.125% | ||||||||||||||
ENLK Credit Facility | Secured Overnight Financing Rate (SOFR) | Line of Credit | EnLink Midstream Partners, LP | Variable Rate Component One | |||||||||||||||
Debt Instrument | |||||||||||||||
Variable rate | 0.10% | ||||||||||||||
ENLK Credit Facility | Base Rate | Line of Credit | EnLink Midstream Partners, LP | Variable Rate Component Two | |||||||||||||||
Debt Instrument | |||||||||||||||
Variable rate | 0.50% | ||||||||||||||
5.625% Senior unsecured notes due 2028 | |||||||||||||||
Debt Instrument | |||||||||||||||
Subtotal | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | 500,000,000 | |||||||||||
Stated interest rate | 5.625% | 5.625% | 5.625% | ||||||||||||
4.40% Senior Notes due 2024 | |||||||||||||||
Debt Instrument | |||||||||||||||
Stated interest rate | 4.40% | 4.40% | 4.40% | ||||||||||||
4.15% Senior Notes due 2025 | |||||||||||||||
Debt Instrument | |||||||||||||||
Subtotal | $ 421,600,000 | $ 421,600,000 | $ 421,600,000 | $ 720,800,000 | |||||||||||
Stated interest rate | 4.15% | 4.15% | 4.15% | ||||||||||||
Unsecured Debt | |||||||||||||||
Debt Instrument | |||||||||||||||
Percentage price of debt issued | 100% | ||||||||||||||
Proceeds from issuance of long-term debt | $ 693,000,000 | ||||||||||||||
Debt repurchased | 700,000,000 | ||||||||||||||
Repayments of debt | 705,300,000 | ||||||||||||||
Debt tender premium | 21,000,000 | ||||||||||||||
Debt discount | 15,700,000 | ||||||||||||||
Unsecured Debt | ENLK Credit Facility | |||||||||||||||
Debt Instrument | |||||||||||||||
Consolidated indebtedness to consolidated EBITDA, during an acquisition period, ratio | 5.5 | 5.5 | 5.5 | ||||||||||||
Unsecured Debt | ENLK Credit Facility | Maximum | |||||||||||||||
Debt Instrument | |||||||||||||||
Consolidated indebtedness to consolidated EBITDA, during an acquisition period, ratio | 5.5 | 5.5 | 5.5 | ||||||||||||
Unsecured Debt | ENLK Credit Facility | Minimum | |||||||||||||||
Debt Instrument | |||||||||||||||
Conditional acquisition purchase price (or more) | $ 50,000,000 | ||||||||||||||
Unsecured Debt | ENLK Credit Facility | Eurodollar | |||||||||||||||
Debt Instrument | |||||||||||||||
Variable rate | 1% | ||||||||||||||
Unsecured Debt | Revolviing Credit Facility Unsecured | |||||||||||||||
Debt Instrument | |||||||||||||||
Consolidated indebtedness to consolidated EBITDA, ratio | 5 | ||||||||||||||
Unsecured Debt | Revolviing Credit Facility Unsecured | Eurodollar | |||||||||||||||
Debt Instrument | |||||||||||||||
Variable rate | 1% | ||||||||||||||
Unsecured Debt | Revolviing Credit Facility Unsecured | Eurodollar | Minimum | |||||||||||||||
Debt Instrument | |||||||||||||||
Variable rate | 0.125% | ||||||||||||||
Unsecured Debt | 5.625% Senior unsecured notes due 2028 | |||||||||||||||
Debt Instrument | |||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||
Stated interest rate | 5.625% | ||||||||||||||
Percentage price of debt issued | 100% | ||||||||||||||
Unsecured Debt | 6.50% Senior Notes due 2030 | |||||||||||||||
Debt Instrument | |||||||||||||||
Subtotal | $ 700,000,000 | ||||||||||||||
Repurchase price as a percent of principal | 100% | ||||||||||||||
Stated interest rate | 6.50% | ||||||||||||||
Unsecured Debt | 4.40% Senior Notes due 2024 | |||||||||||||||
Debt Instrument | |||||||||||||||
Proceeds from issuance of long-term debt | $ 404,400,000 | ||||||||||||||
Unsecured Debt | 4.15% Senior Notes due 2025 | |||||||||||||||
Debt Instrument | |||||||||||||||
Proceeds from issuance of long-term debt | $ 295,600,000 | ||||||||||||||
Letter of Credit | Revolviing Credit Facility Unsecured | |||||||||||||||
Debt Instrument | |||||||||||||||
Percentage of letter of credits guaranteed | 105% | 105% | 105% |
Long-Term Debt - Summary of Red
Long-Term Debt - Summary of Redemption Provision Terms (Details) - EnLink Midstream Partners, LP - Treasury Rate | 12 Months Ended |
Dec. 31, 2022 | |
4.4% Senior Notes due 2024 | |
Debt Instrument | |
Redemption premium, percentage | 25% |
4.15% Senior Notes due 2025 | |
Debt Instrument | |
Redemption premium, percentage | 30% |
4.85 Senior Unsecured Notes Due 2026 | |
Debt Instrument | |
Redemption premium, percentage | 50% |
5.625% Senior unsecured notes due 2028 | |
Debt Instrument | |
Redemption premium, percentage | 50% |
5.375% Senior unsecured notes due 2029 | |
Debt Instrument | |
Redemption premium, percentage | 50% |
6.50% Senior unsecured notes due 2030 | |
Debt Instrument | |
Redemption premium, percentage | 50% |
5.6% Senior Notes due 2044 | |
Debt Instrument | |
Redemption premium, percentage | 30% |
5.05 Senior Notes due 2045 | |
Debt Instrument | |
Redemption premium, percentage | 30% |
Senior Unsecured Notes, 5.45%, Due 2047 | |
Debt Instrument | |
Redemption premium, percentage | 40% |
Long-Term Debt - Senior Unsecur
Long-Term Debt - Senior Unsecured Notes Repurchases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Senior Unsecured Notes, Tender Offer | ||
Debt Instrument | ||
Debt repurchased | $ 700 | |
Aggregate payments | (705.3) | |
Net discount on repurchased debt | (1) | |
Gain (loss) on extinguishment of debt | (6.3) | |
Senior Unsecured Notes, Open Market Transactions | ||
Debt Instrument | ||
Debt repurchased | 23.1 | $ 67.7 |
Aggregate payments | (22.5) | (36) |
Net discount on repurchased debt | 0 | (0.3) |
Accrued interest on repurchased debt | 0 | 0.6 |
Gain (loss) on extinguishment of debt | $ 0.6 | $ 32 |
Income Taxes - Components of Th
Income Taxes - Components of The Provision For Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expense | $ (0.4) | $ (0.8) | $ (1.1) |
Deferred tax benefit (expense) | 95.3 | (24.6) | (142.1) |
Total income tax benefit (expense) | $ 94.9 | $ (25.4) | $ (143.2) |
Income Taxes - Book Income Reco
Income Taxes - Book Income Reconciliation To Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Expected income tax benefit (expense) based on federal statutory tax rate | $ (55.9) | $ (10) | $ 58.5 |
State income tax benefit (expense), net of federal benefit | (7) | (1.4) | 6.5 |
Unit-based compensation | 0.7 | (3.1) | (6) |
Non-deductible expense related to impairments | 0 | 0 | (43.4) |
Statutory rate changes | 0 | (10.2) | 0 |
Change in valuation allowance | (151.6) | (1.7) | 153.3 |
Other | 5.5 | (2.4) | (5.5) |
Total income tax benefit (expense) | $ 94.9 | (25.4) | $ (143.2) |
Oklahoma | |||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Deferred state income tax expense (benefit) | 7.6 | ||
Louisiana | |||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Deferred state income tax expense (benefit) | $ 2.6 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred income tax assets: | |||
Federal net operating loss carryforward | $ 636.5 | $ 573.6 | |
State net operating loss carryforward | 77.6 | 59.6 | |
Total deferred tax assets, gross | 714.1 | 633.2 | |
Valuation allowance | 0 | (151.6) | $ (153.3) |
Total deferred tax assets, net of valuation allowance | 714.1 | 481.6 | |
Deferred tax liabilities: | |||
Property, plant, equipment, and intangible assets | (816.8) | (619.1) | |
Interest deduction limitation | 57.6 | 0 | |
Other | 2.4 | 0 | |
Total deferred tax liabilities | (756.8) | (619.1) | |
Deferred tax liability, net | $ (42.7) | $ (137.5) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Valuation allowance | $ 0 | $ 151,600,000 | $ 153,300,000 |
Change in valuation allowance | 151,600,000 | 1,700,000 | $ (153,300,000) |
Unrecognized tax benefits | 0 | $ 0 | |
Domestic Tax Authority | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 3,000,000,000 | ||
Deferred tax assets, operating loss carryforwards, domestic | 636,500,000 | ||
Operating loss carryforwards, amount carried indefinitely | 2,800,000,000 | ||
Operating loss carryforwards, amount carried for a maximum of twenty years | 200,000,000 | ||
State and Local Jurisdiction | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 1,600,000,000 | ||
Deferred tax assets, operating loss carryforwards, domestic | $ 77,600,000 |
Certain Provisions of the Par_3
Certain Provisions of the Partnership Agreement - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 15, 2022 $ / shares | Jul. 01, 2022 plant | Jan. 25, 2019 | Oct. 31, 2022 USD ($) shares | Jan. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Sep. 30, 2017 $ / shares shares | Jan. 31, 2016 $ / shares shares | Mar. 14, 2023 | Sep. 30, 2019 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 15, 2023 USD ($) | |
Partnership agreement | ||||||||||||||
Common units conversion ratio | 1.15 | |||||||||||||
Crestwood Gas Services Operating LLC | ||||||||||||||
Partnership agreement | ||||||||||||||
Number of processing plants | plant | 3 | |||||||||||||
Series B Preferred Units | ||||||||||||||
Partnership agreement | ||||||||||||||
Stock redeemed during period (in shares) | shares | 3,333,334 | 3,300,330 | ||||||||||||
Redemption of Series B Preferred Units | $ | $ 50.5 | $ 50 | ||||||||||||
Redemption price of preferred stock, percent | 101% | |||||||||||||
Series B Preferred Units | EnLink Midstream Partners, LP | ||||||||||||||
Partnership agreement | ||||||||||||||
Partners' capital account, units, sold in private placement (in shares) | shares | 50,000,000 | |||||||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 15 | |||||||||||||
Annual rate on issue price | 0.25% | |||||||||||||
Annual rate on issue price payable in cash | 28.125% | |||||||||||||
Series C Preferred Units | ||||||||||||||
Partnership agreement | ||||||||||||||
Stock redeemed during period (in shares) | shares | 19,000 | |||||||||||||
Redemption of Series B Preferred Units | $ | $ 15.2 | |||||||||||||
Redemption price of preferred stock, percent | 8,000% | |||||||||||||
Series C Preferred Units | EnLink Midstream Partners, LP | ||||||||||||||
Partnership agreement | ||||||||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 1,000 | |||||||||||||
Partners' capital account, units, sold in public offering (in shares) | shares | 400,000 | |||||||||||||
Partners capital account, redemption price (in dollars per share) | $ / shares | $ 1,000 | |||||||||||||
Partners' capital account, redemption period following review or appeal | 120 days | |||||||||||||
Partners' capital account, redemption price following review or appeal (in dollars per share) | $ / shares | $ 1,020 | |||||||||||||
Partners' capital account, dividend rate, percentage | 6% | |||||||||||||
Distributions to preferred unitholders | $ | $ 23.4 | $ 24 | $ 24 | |||||||||||
Series C Preferred Units | EnLink Midstream Partners, LP | Subsequent Event | ||||||||||||||
Partnership agreement | ||||||||||||||
Partners' capital account, dividend rate, percentage | 8.8463% | |||||||||||||
Partners' capital account, distributions, variable floating rate percentage | 4.11% | |||||||||||||
Distribution payable | $ | $ 8.4 | |||||||||||||
Series C Preferred Units | EnLink Midstream Partners, LP | LIBOR | ||||||||||||||
Partnership agreement | ||||||||||||||
Partners' capital account, distributions, variable floating rate percentage | 4.11% | |||||||||||||
Limited Partner | Series B Preferred Units | ||||||||||||||
Partnership agreement | ||||||||||||||
Partners' capital, conversion obligation period of consecutive trading days | 30 days | |||||||||||||
Partners' capital, average trading price, number of trading days | 2 days | |||||||||||||
Percent of issue price | 150% |
Certain Provisions of the Par_4
Certain Provisions of the Partnership Agreement - Summary of Distribution (Details) - Series B Preferred Units - Limited Partner - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||||||||||||||
May 13, 2022 | Feb. 11, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Partnership agreement | ||||||||||||||||
Preferred units distributions (in shares) | 0 | 0 | 0 | 0 | 0 | 151,626 | 151,248 | 150,871 | 150,494 | 150,119 | 149,745 | 149,371 | ||||
Cash distribution (in millions) | $ 17.3 | $ 17.3 | $ 17.3 | $ 17.5 | $ 19.2 | $ 17.1 | $ 17 | $ 17 | $ 16.9 | $ 16.9 | $ 16.8 | $ 16.8 | ||||
Distribution, Tranche One | ||||||||||||||||
Partnership agreement | ||||||||||||||||
Dividends, preferred stock | $ 17.3 | $ 1 | $ 0.9 | |||||||||||||
Distribution, Tranche Two | ||||||||||||||||
Partnership agreement | ||||||||||||||||
Dividends, preferred stock | $ 17.2 | $ 0.3 |
Members' Equity - Narrative (De
Members' Equity - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Feb. 13, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 31, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Stock repurchase program, authorized amount | $ 200,000,000 | $ 200,000,000 | |||
Common units held (in shares) | 18,374,054 | 6,091,001 | 383,614 | ||
Common units repurchased | $ 175,000,000 | $ 40,100,000 | $ 1,200,000 | ||
Subsequent Event | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Common units held (in shares) | 2,237,110 | ||||
Common units repurchased | $ 24,600,000 | ||||
Price of shares purchased | $ 11.01 |
Members' Equity - IP Repurchase
Members' Equity - IP Repurchase Agreement (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common units held (in shares) | 18,374,054 | 6,091,001 | 383,614 |
Aggregate cost for common units | $ 175 | $ 40.1 | $ 1.2 |
Public ENLC Common Units | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common units held (in shares) | 11,630,351 | 6,091,001 | 383,614 |
Aggregate cost for common units | $ 111.5 | $ 40.1 | $ 1.2 |
ENCL Common Units Held by GIP | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common units held (in shares) | 6,743,703 | ||
Aggregate cost for common units | $ 63.5 | ||
Average price of shares repurchased (in dollars per share) | $ 9.42 | ||
Common Units | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Average price of shares repurchased (in dollars per share) | $ 9.59 | $ 6.59 | $ 3.02 |
Members' Equity - Summary (Deta
Members' Equity - Summary (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Distributed earnings allocated to: | |||||||||||||||
Total distributed earnings | $ 226.5 | $ 197 | $ 186.6 | ||||||||||||
Undistributed income (loss) allocated to: | |||||||||||||||
Total undistributed loss, basic | 134.8 | (174.6) | (608.1) | ||||||||||||
Total undistributed loss, diluted | 134.8 | (174.6) | (608.1) | ||||||||||||
Net income (loss) attributable to ENLC allocated to: | |||||||||||||||
Total net income (loss), basic | 361.3 | 22.4 | (421.5) | ||||||||||||
Total net income (loss), diluted | $ 361.3 | $ 22.4 | $ (421.5) | ||||||||||||
Net income (loss) attributable to ENLC per unit: | |||||||||||||||
Basic (in dollars per share) | $ 0.76 | $ 0.05 | $ (0.86) | ||||||||||||
Diluted (in dollars per share) | $ 0.74 | $ 0.05 | $ (0.86) | ||||||||||||
Weighted average basic common units outstanding (in units) | 478.5 | 488.8 | 489.3 | ||||||||||||
Dilutive effect of non-vested restricted units (in units) | 6.8 | 5.5 | 0 | ||||||||||||
Total weighted average diluted common units outstanding (in units) | 485.3 | 494.3 | 489.3 | ||||||||||||
Distribution declared/unit (in dollars per share) | $ 0.12500 | $ 0.11250 | $ 0.11250 | $ 0.11250 | $ 0.11250 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | |||
Unvested restricted units | |||||||||||||||
Distributed earnings allocated to: | |||||||||||||||
Total distributed earnings | $ 5.2 | $ 4.5 | $ 3.1 | ||||||||||||
Undistributed income (loss) allocated to: | |||||||||||||||
Total undistributed loss, basic | 3.1 | (4) | (9.7) | ||||||||||||
Total undistributed loss, diluted | 3.1 | (4) | (9.7) | ||||||||||||
Net income (loss) attributable to ENLC allocated to: | |||||||||||||||
Total net income (loss), basic | 8.3 | 0.5 | (6.6) | ||||||||||||
Total net income (loss), diluted | 8.3 | 0.5 | (6.6) | ||||||||||||
Common units | |||||||||||||||
Distributed earnings allocated to: | |||||||||||||||
Total distributed earnings | 221.3 | 192.5 | 183.5 | ||||||||||||
Undistributed income (loss) allocated to: | |||||||||||||||
Total undistributed loss, basic | 131.7 | (170.6) | (598.4) | ||||||||||||
Total undistributed loss, diluted | 131.7 | (170.6) | (598.4) | ||||||||||||
Net income (loss) attributable to ENLC allocated to: | |||||||||||||||
Total net income (loss), basic | 353 | 21.9 | (414.9) | ||||||||||||
Total net income (loss), diluted | $ 353 | $ 21.9 | $ (414.9) |
Investment in Unconsolidated _3
Investment in Unconsolidated Affiliates - Narrative (Details) | Dec. 31, 2022 |
Gulf Coast Fractionators | |
Equity method investments | |
Ownership interest | 38.75% |
Cedar Cove JV | |
Equity method investments | |
Ownership interest | 30% |
Matterhorn JV | |
Equity method investments | |
Ownership interest | 15% |
Investment in Unconsolidated _4
Investment in Unconsolidated Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity method investments | |||
Contributions | $ 65.9 | $ 0 | $ 0 |
Distributions | (0.7) | (3.9) | (2.1) |
Equity in income (loss) | (5.6) | (11.5) | 0.6 |
EnLink Midstream Partners, LP | |||
Equity method investments | |||
Total investment in unconsolidated affiliates | $ 85.8 | 26.2 | |
Gulf Coast Fractionators | |||
Equity method investments | |||
Ownership interest | 38.75% | ||
Contributions | $ 1.5 | 0 | 0 |
Distributions | 0 | (3.5) | (1.6) |
Equity in income (loss) | (3.2) | (9.1) | 3 |
Gulf Coast Fractionators | EnLink Midstream Partners, LP | |||
Equity method investments | |||
Total investment in unconsolidated affiliates | $ 26.3 | 28 | |
Cedar Cove JV | |||
Equity method investments | |||
Ownership interest | 30% | ||
Distributions | $ (0.7) | (0.4) | (0.5) |
Equity in income (loss) | (1.9) | (2.4) | (2.4) |
Cedar Cove JV | EnLink Midstream Partners, LP | |||
Equity method investments | |||
Total investment in unconsolidated affiliates | $ (4.4) | (1.8) | |
Matterhorn JV | |||
Equity method investments | |||
Ownership interest | 15% | ||
Contributions | $ 64.4 | 0 | 0 |
Equity in income (loss) | (0.5) | 0 | $ 0 |
Matterhorn JV | EnLink Midstream Partners, LP | |||
Equity method investments | |||
Total investment in unconsolidated affiliates | $ 63.9 | $ 0 |
Employee Incentive Plans - Amou
Employee Incentive Plans - Amounts Recognized in Consolidated Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allocation | |||
Compensation expense | $ 30.4 | $ 25.3 | $ 28.4 |
Amount of related income tax benefit recognized in net income | 7.1 | 5.9 | 6.7 |
Unit-based compensation, related income tax expense (benefit) | (0.7) | 3.1 | 6 |
Unvested restricted units | |||
Allocation | |||
Unit-based compensation, related income tax expense (benefit) | (0.7) | 3.1 | 6 |
Cost of unit-based compensation charged to operating expense | |||
Allocation | |||
Compensation expense | 5.7 | 6.6 | 7.1 |
Cost of unit-based compensation charged to general and administrative expense | |||
Allocation | |||
Compensation expense | $ 24.7 | $ 18.7 | $ 21.3 |
Employee Incentive Plans - Rest
Employee Incentive Plans - Restricted and Performance Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2022 | Mar. 31, 2022 | Jan. 31, 2021 | Jul. 31, 2020 | Mar. 31, 2020 | Jan. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted incentive units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Granted (in shares) | 193,935 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||
Vesting period | 3 years | ||||||||
Fair value of units vested | $ 1.7 | ||||||||
Unrecognized compensation cost related to non-vested restricted incentive units | $ 15.3 | ||||||||
Unrecognized compensation costs, weighted average period for recognition | 1 year 9 months 18 days | ||||||||
Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Non-vested, beginning of period (in shares) | 3,574,827 | ||||||||
Granted (in shares) | 1,204,882 | ||||||||
Vested (in shares) | (1,480,802) | ||||||||
Forfeited (in shares) | (319,753) | ||||||||
Non-vested, end of period (in shares) | 2,979,154 | 3,574,827 | |||||||
Aggregate intrinsic value, end of period (in millions) | $ 36.6 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||
Non-vested, beginning of period (in dollars per share) | $ 6.40 | ||||||||
Granted (in dollars per share) | 11.60 | ||||||||
Vested (in dollars per share) | 9.32 | ||||||||
Forfeited (in dollars per share) | 12.11 | ||||||||
Non-vested, end of period (in dollars per share) | $ 6.44 | $ 6.40 | |||||||
Vesting period | 3 years | ||||||||
Fair value of units vested | $ 26.2 | $ 4.4 | $ 5.5 | ||||||
Aggregate intrinsic value of units vested | 20.4 | $ 0.6 | 0.9 | ||||||
Unrecognized compensation cost related to non-vested restricted incentive units | $ 10.1 | ||||||||
Unrecognized compensation costs, weighted average period for recognition | 1 year 9 months 18 days | ||||||||
Performance Shares With Vesting Conditions | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Granted (in shares) | 88,863 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||||||
Grant-date fair value (in dollars per share) | $ 8.90 | ||||||||
ENLC | Restricted incentive units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Non-vested, beginning of period (in shares) | 7,507,471 | ||||||||
Granted (in shares) | 2,461,950 | ||||||||
Vested (in shares) | (2,615,805) | ||||||||
Forfeited (in shares) | (578,430) | ||||||||
Non-vested, end of period (in shares) | 6,775,186 | 7,507,471 | |||||||
Aggregate intrinsic value, end of period (in millions) | $ 83.3 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||
Non-vested, beginning of period (in dollars per share) | $ 5.46 | ||||||||
Granted (in dollars per share) | 8.83 | ||||||||
Vested (in dollars per share) | 7.28 | ||||||||
Forfeited (in dollars per share) | 6.53 | ||||||||
Non-vested, end of period (in dollars per share) | $ 5.89 | $ 5.46 | |||||||
Fair value of units vested | $ 19 | $ 16.3 | 31.5 | ||||||
Units withheld for payroll taxes (in shares) | 863,909 | ||||||||
Aggregate intrinsic value of units vested | $ 24.4 | $ 5.6 | $ 12.1 | ||||||
ENLC | Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||
Units withheld for payroll taxes (in shares) | 806,918 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||||||
Grant-date fair value (in dollars per share) | $ 11.71 | 11.90 | $ 4.70 | $ 2.33 | $ 1.13 | $ 7.69 | |||
Beginning TSR price (in dollars per share) | $ 8.54 | $ 8.83 | $ 3.71 | $ 2.52 | $ 1.25 | $ 6.13 | |||
Risk-free interest rate | 3.35% | 2.15% | 0.17% | 0.17% | 0.42% | 1.62% | |||
Volatility factor | 76% | 75% | 71% | 67% | 51% | 37% | |||
ENLC | Performance Shares | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||
Percent of units vesting | 0% | ||||||||
ENLC | Performance Shares | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||
Percent of units vesting | 200% |
Employee Incentive Plans - Summ
Employee Incentive Plans - Summary of Tranche Vesting Levels (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Below Threshold | TSR Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of the Tranche CF Units | 0% | ||
Below Threshold | Cash Flow Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ENLC’s Achieved FCFAD | $ 154 | $ 205 | |
ENLC’s Achieved Cash Flow per Unit (in dollars per share) | $ 1.345 | ||
Vesting percentage of the Tranche CF Units | 0% | 0% | 0% |
Threshold | TSR Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of the Tranche CF Units | 50% | ||
Threshold | Cash Flow Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ENLC’s Achieved FCFAD | $ 154 | $ 205 | |
ENLC’s Achieved Cash Flow per Unit (in dollars per share) | $ 1.345 | ||
Vesting percentage of the Tranche CF Units | 5,000% | 5,000% | 5,000% |
Target | TSR Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of the Tranche CF Units | 100% | ||
Target | Cash Flow Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ENLC’s Achieved FCFAD | $ 202 | $ 256 | |
ENLC’s Achieved Cash Flow per Unit (in dollars per share) | $ 1.494 | ||
Vesting percentage of the Tranche CF Units | 10,000% | 10,000% | 10,000% |
Maximum | TSR Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of the Tranche CF Units | 200% | ||
Maximum | Cash Flow Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ENLC’s Achieved FCFAD | $ 241 | $ 300 | |
ENLC’s Achieved Cash Flow per Unit (in dollars per share) | $ 1.643 | ||
Vesting percentage of the Tranche CF Units | 20,000% | 20,000% | 20,000% |
Employee Incentive Plans - Bene
Employee Incentive Plans - Benefit Plan (Details) - EnLink Midstream Partners, LP - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent | 100% | ||
Employer matching contribution, percent of employees' gross pay | 6% | ||
Employer benefit plan contributions | $ 7.4 | $ 7 | $ 7.2 |
Derivatives - Interest Rate Swa
Derivatives - Interest Rate Swaps (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2019 | |||||
Derivatives | ||||||||
Derivative, notional amount | $ 850,000,000 | |||||||
Derivative, fixed interest rate | 2.28% | |||||||
Interest Rate Swaps Terminations | $ 850,000,000 | |||||||
Cash Payments Associated with Interest Rate Swaps Terminations | 12,700,000 | |||||||
Change in fair value of derivatives | 40,200,000 | $ (12,400,000) | $ (10,500,000) | |||||
Tax benefit (expense) | (500,000) | (4,300,000) | 1,300,000 | |||||
Unrealized gain (loss) on designated cash flow hedge | [2] | 1,400,000 | [1] | 13,900,000 | [3] | (4,300,000) | [4] | |
Cash flow hedge gain (loss) amortized into interest rate expense | 1,900,000 | 18,300,000 | 14,500,000 | |||||
December 2021 | ||||||||
Derivatives | ||||||||
Interest Rate Swaps Terminations | 150,000,000 | |||||||
Cash Payments Associated with Interest Rate Swaps Terminations | 0 | |||||||
September 2021 | ||||||||
Derivatives | ||||||||
Interest Rate Swaps Terminations | 100,000,000 | |||||||
Cash Payments Associated with Interest Rate Swaps Terminations | 500,000 | |||||||
May 2021 | ||||||||
Derivatives | ||||||||
Interest Rate Swaps Terminations | 100,000,000 | |||||||
Cash Payments Associated with Interest Rate Swaps Terminations | 1,300,000 | |||||||
December 2020 | ||||||||
Derivatives | ||||||||
Interest Rate Swaps Terminations | 500,000,000 | |||||||
Cash Payments Associated with Interest Rate Swaps Terminations | 10,900,000 | |||||||
Interest rate swaps | ||||||||
Derivatives | ||||||||
Change in fair value of derivatives | $ 1,900,000 | $ 18,200,000 | $ (5,600,000) | |||||
[1]Includes a tax expense of $0.5 million.[2]Includes tax expense of $0.5 million and $4.3 million for the years ended December 31, 2022 and 2021, respectively, and a tax benefit of $1.3 million for the year ended December 31, 2020.[3]Includes a tax expense of $4.3 million.[4]Includes a tax benefit of $1.3 million. |
Derivatives - Components of Gai
Derivatives - Components of Gain (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives | |||
Change in fair value of derivatives | $ 40.2 | $ (12.4) | $ (10.5) |
Gain (loss) on derivative activity | 14.3 | (159.1) | (22) |
EnLink Midstream Partners, LP | Commodity Swaps | |||
Derivatives | |||
Change in fair value of derivatives | 40.2 | (12.4) | (10.5) |
Realized loss on derivatives | (25.9) | (146.7) | (11.5) |
Gain (loss) on derivative activity | $ 14.3 | $ (159.1) | $ (22) |
Derivatives - Fair Value of Ass
Derivatives - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives | ||
Fair value of derivative assets—current | $ 68.4 | $ 22.4 |
Fair value of derivative assets—long-term | 2.9 | 0.2 |
Fair value of derivative liabilities—current | (42.9) | (34.9) |
Fair value of derivative liabilities—long-term | (2.7) | (2.2) |
Commodity Swaps | ||
Derivatives | ||
Net fair value of commodity derivatives | 25.7 | |
EnLink Midstream Partners, LP | Commodity Swaps | ||
Derivatives | ||
Fair value of derivative assets—current | 68.4 | 22.4 |
Fair value of derivative assets—long-term | 2.9 | 0.2 |
Fair value of derivative liabilities—current | (42.9) | (34.9) |
Fair value of derivative liabilities—long-term | (2.7) | (2.2) |
Net fair value of commodity derivatives | $ 25.7 | $ (14.5) |
Derivatives - Commodities (Deta
Derivatives - Commodities (Details) - Commodity Swaps gal in Millions, bbl in Millions, BTU in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) BTU bbl gal | Dec. 31, 2021 USD ($) | |
Derivatives | ||
Net Fair Value | $ 25.7 | |
EnLink Midstream Partners, LP | ||
Derivatives | ||
Net Fair Value | 25.7 | $ (14.5) |
Maximum loss if counterparties fail to perform | 71.3 | |
Maximum potential exposure to credit losses net exposure | $ 33.4 | |
EnLink Midstream Partners, LP | NGL | Short | ||
Derivatives | ||
Notional amount (in gallons or MMbbls) | gal | 138.4 | |
Net Fair Value | $ 14.5 | |
EnLink Midstream Partners, LP | Natural Gas | Short | ||
Derivatives | ||
Notional amount (in mmbtu) | BTU | 52.2 | |
Net Fair Value | $ 40.9 | |
EnLink Midstream Partners, LP | Natural Gas | Long | ||
Derivatives | ||
Notional amount (in mmbtu) | BTU | 25.7 | |
Net Fair Value | $ (29.1) | |
EnLink Midstream Partners, LP | Condensate | Short | ||
Derivatives | ||
Notional amount (in gallons or MMbbls) | bbl | 5.5 | |
Net Fair Value | $ 2.7 | |
EnLink Midstream Partners, LP | Crude and condensate | Long | ||
Derivatives | ||
Notional amount (in gallons or MMbbls) | bbl | 1.6 | |
Net Fair Value | $ (3.3) |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - Commodity Swaps - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Net Fair Value | $ 25.7 | |
Level 2 | Recurring | ||
Fair Value | ||
Net Fair Value | $ 25.7 | $ (14.5) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) | 12 Months Ended | ||||
Apr. 30, 2021 | Dec. 31, 2022 | Apr. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value | |||||
Installment payable | $ 0 | $ 10,000,000 | |||
Debt issuance costs | 34,900,000 | 27,800,000 | |||
Amarillo Rattler, LLC | |||||
Fair Value | |||||
Installment payable | $ 10,000,000 | $ 10,000,000 | |||
Contingent consideration | 4,200,000 | 6,900,000 | $ 6,900,000 | ||
Business combination, maximum earnout | 15,000,000 | $ 15,000,000 | |||
Contingent consideration fair value | $ 6,900,000 | ||||
Central Oklahoma Acquisition | |||||
Fair Value | |||||
Contingent consideration fair value | 1,300,000 | ||||
Carrying Value | |||||
Fair Value | |||||
Long-term debt | 4,723,500,000 | 4,363,700,000 | |||
Installment payable | 0 | 10,000,000 | |||
Contingent consideration | 5,500,000 | 6,900,000 | |||
Fair Value | |||||
Fair Value | |||||
Long-term debt | 4,385,900,000 | 4,520,000,000 | |||
Installment payable | 0 | 10,000,000 | |||
Contingent consideration | $ 5,500,000 | $ 6,900,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) claim defendant | |
Koch | EnLink Gas Marketing, LP | |
Commitments and Contingencies | |
Loss contingency, damages sought, value | $ | $ 53.9 |
Harris County Multi-District Litigation | EnLink Energy GP, LLC | |
Commitments and Contingencies | |
Number of defendants | defendant | 350 |
Number of filed cases | 150 |
Number of third parties involved in economic damage claims | 90 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Segment Information - Financial
Segment Information - Financial Information and Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | $ 9,527.8 | $ 6,845 | $ 3,915.8 | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | [1] | (7,572.8) | (5,189.9) | (2,388.5) |
Realized loss on derivatives | (25.9) | (146.7) | (11.5) | |
Change in fair value of derivatives | 40.2 | (12.4) | (10.5) | |
Adjusted gross margin | 1,969.3 | 1,496 | 1,505.3 | |
Operating expenses | (524.9) | (362.9) | (373.8) | |
Segment profit | 1,444.4 | 1,133.1 | 1,131.5 | |
Depreciation and amortization | (639.4) | (607.5) | (638.6) | |
Impairments | 0 | (0.8) | (362.8) | |
Gain (loss) on disposition of assets | (18) | 1.5 | (8.8) | |
General and administrative | (125.2) | (107.8) | (103.3) | |
Interest expense, net of interest income | (245) | (238.7) | (223.3) | |
Gain (loss) on extinguishment of debt | (6.2) | 0 | 32 | |
Income from unconsolidated affiliate investments | (5.6) | (11.5) | 0.6 | |
Other income | 0.8 | 0 | 0.3 | |
Income (loss) before non-controlling interest and income taxes | 405.8 | 168.3 | (172.4) | |
Capital expenditures | 337.6 | 196 | 262.6 | |
Related parties amount in cost of sales | 28.2 | 17.9 | 8.7 | |
Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 3,865.4 | 2,390.6 | 1,106.5 | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | (3,280.3) | (1,996.1) | (842.2) | |
Realized loss on derivatives | (9) | (75.6) | (1.1) | |
Change in fair value of derivatives | 9.6 | (7.7) | 1.1 | |
Adjusted gross margin | 585.7 | 311.2 | 264.3 | |
Operating expenses | (200.2) | (81.5) | (94.2) | |
Segment profit | 385.5 | 229.7 | 170.1 | |
Depreciation and amortization | (154.5) | (139.9) | (125.2) | |
Impairments | 0 | (184.6) | ||
Gain (loss) on disposition of assets | 0.1 | 0 | (11.2) | |
General and administrative | 0 | 0 | 0 | |
Interest expense, net of interest income | 0 | 0 | 0 | |
Gain (loss) on extinguishment of debt | 0 | 0 | ||
Income from unconsolidated affiliate investments | 0 | 0 | 0 | |
Other income | 0 | 0 | ||
Income (loss) before non-controlling interest and income taxes | 231.1 | 89.8 | (150.9) | |
Capital expenditures | 210.2 | 141.6 | 181.1 | |
Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 5,966.8 | 4,581.4 | 2,205.1 | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | (5,462.4) | (4,091.2) | (1,787) | |
Realized loss on derivatives | 2.9 | (42.3) | (6) | |
Change in fair value of derivatives | 7.7 | 0.7 | (6.5) | |
Adjusted gross margin | 515 | 448.6 | 405.6 | |
Operating expenses | (140.7) | (123.7) | (120) | |
Segment profit | 374.3 | 324.9 | 285.6 | |
Depreciation and amortization | (156.5) | (141) | (145.8) | |
Impairments | (0.6) | (170) | ||
Gain (loss) on disposition of assets | (13.8) | 1.2 | 0.1 | |
General and administrative | 0 | 0 | 0 | |
Interest expense, net of interest income | 0 | 0 | 0 | |
Gain (loss) on extinguishment of debt | 0 | 0 | ||
Income from unconsolidated affiliate investments | 0 | 0 | 0 | |
Other income | 0 | 0 | ||
Income (loss) before non-controlling interest and income taxes | 204 | 184.5 | (30.1) | |
Capital expenditures | 33.7 | 9.3 | 44.6 | |
Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,610.5 | 1,226.8 | 862 | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | (1,124.4) | (796.6) | (365.5) | |
Realized loss on derivatives | (13.1) | (22.6) | (4.4) | |
Change in fair value of derivatives | 5.6 | 0 | (4.5) | |
Adjusted gross margin | 478.6 | 407.6 | 487.6 | |
Operating expenses | (90.9) | (80) | (82.2) | |
Segment profit | 387.7 | 327.6 | 405.4 | |
Depreciation and amortization | (201.8) | (204.3) | (216.9) | |
Impairments | 0 | (0.7) | ||
Gain (loss) on disposition of assets | 0.5 | 0 | 0.3 | |
General and administrative | 0 | 0 | 0 | |
Interest expense, net of interest income | 0 | 0 | 0 | |
Gain (loss) on extinguishment of debt | 0 | 0 | ||
Income from unconsolidated affiliate investments | 0 | 0 | 0 | |
Other income | 0 | 0 | ||
Income (loss) before non-controlling interest and income taxes | 186.4 | 123.3 | 188.1 | |
Capital expenditures | 63.8 | 30.4 | 17.9 | |
North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,011.1 | 872 | 502.2 | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | (631.7) | (531.8) | (153.8) | |
Realized loss on derivatives | (6.7) | (6.2) | 0 | |
Change in fair value of derivatives | 17.3 | (5.4) | (0.6) | |
Adjusted gross margin | 390 | 328.6 | 347.8 | |
Operating expenses | (93.1) | (77.7) | (77.4) | |
Segment profit | 296.9 | 250.9 | 270.4 | |
Depreciation and amortization | (121.1) | (114.3) | (143.4) | |
Impairments | 0 | 0 | ||
Gain (loss) on disposition of assets | (4.8) | 0.3 | 2 | |
General and administrative | 0 | 0 | 0 | |
Interest expense, net of interest income | 0 | 0 | 0 | |
Gain (loss) on extinguishment of debt | 0 | |||
Income from unconsolidated affiliate investments | 0 | 0 | 0 | |
Other income | 0 | 0 | ||
Income (loss) before non-controlling interest and income taxes | 171 | 136.9 | 129 | |
Capital expenditures | 22.8 | 11.9 | 16.9 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (2,926) | (2,225.8) | (760) | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | 2,926 | 2,225.8 | 760 | |
Realized loss on derivatives | 0 | 0 | 0 | |
Change in fair value of derivatives | 0 | 0 | 0 | |
Adjusted gross margin | 0 | 0 | 0 | |
Operating expenses | 0 | 0 | 0 | |
Segment profit | 0 | 0 | 0 | |
Depreciation and amortization | (5.5) | (8) | (7.3) | |
Impairments | (0.2) | (7.5) | ||
Gain (loss) on disposition of assets | 0 | 0 | 0 | |
General and administrative | (125.2) | (107.8) | (103.3) | |
Interest expense, net of interest income | (245) | (238.7) | (223.3) | |
Gain (loss) on extinguishment of debt | (6.2) | 32 | ||
Income from unconsolidated affiliate investments | (5.6) | (11.5) | 0.6 | |
Other income | 0.8 | 0.3 | ||
Income (loss) before non-controlling interest and income taxes | (386.7) | (366.2) | (308.5) | |
Capital expenditures | 7.1 | 2.8 | 2.1 | |
Texas Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Gain (loss) on extinguishment of debt | 0 | |||
Product sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 8,564.9 | 5,994 | 2,977.5 | |
Product sales | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 2,235.8 | 1,287.7 | 708.4 | |
Product sales | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 5,675 | 4,258.6 | 2,002.6 | |
Product sales | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 513.7 | 296.6 | 196.2 | |
Product sales | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 140.4 | 151.1 | 70.3 | |
Product sales | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Natural gas sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 2,713.6 | 1,666.3 | 704 | |
Natural gas sales | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,078.7 | 609.4 | 150.1 | |
Natural gas sales | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,128.4 | 693.5 | 330.5 | |
Natural gas sales | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 367.5 | 213.4 | 153.1 | |
Natural gas sales | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 139 | 150 | 70.3 | |
Natural gas sales | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
NGL sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 4,207.3 | 3,357.1 | 1,548.4 | |
NGL sales | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (1.5) | 0.9 | 0.2 | |
NGL sales | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 4,196.6 | 3,353.1 | 1,545.4 | |
NGL sales | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 10.8 | 2 | 2.8 | |
NGL sales | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1.4 | 1.1 | 0 | |
NGL sales | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude oil and condensate sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,644 | 970.6 | 725.1 | |
Crude oil and condensate sales | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,158.6 | 677.4 | 558.1 | |
Crude oil and condensate sales | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 350 | 212 | 126.7 | |
Crude oil and condensate sales | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 135.4 | 81.2 | 40.3 | |
Crude oil and condensate sales | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude oil and condensate sales | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Product sales—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Product sales—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,495.6 | 1,008.4 | 313.2 | |
Product sales—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 97.7 | 129.7 | 31.4 | |
Product sales—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 774.9 | 630.9 | 296.3 | |
Product sales—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 555.9 | 454.1 | 118.8 | |
Product sales—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (2,924.1) | (2,223.1) | (759.7) | |
NGL sales—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
NGL sales—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,495.6 | 1,008.4 | 312.6 | |
NGL sales—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 97.7 | 129.7 | 31.4 | |
NGL sales—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 774.6 | 630.8 | 296.4 | |
NGL sales—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 543.6 | 447 | 115.2 | |
NGL sales—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (2,911.5) | (2,215.9) | (755.6) | |
Crude oil and condensate sales—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude oil and condensate sales—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0.6 | |
Crude oil and condensate sales—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude oil and condensate sales—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.3 | 0.1 | (0.1) | |
Crude oil and condensate sales—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 12.3 | 7.1 | 3.6 | |
Crude oil and condensate sales—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (12.6) | (7.2) | (4.1) | |
Midstream services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 962.9 | 851 | 938.3 | |
Midstream services | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 134 | 94.5 | 84.9 | |
Midstream services | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 193.9 | 190.7 | 171.1 | |
Midstream services | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 321.8 | 299 | 369.2 | |
Midstream services | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 313.2 | 266.8 | 313.1 | |
Midstream services | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Gathering and transportation | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 521.3 | 455.4 | 497.2 | |
Gathering and transportation | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 72.6 | 46.8 | 42.8 | |
Gathering and transportation | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 75.5 | 64.7 | 46.5 | |
Gathering and transportation | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 187.5 | 186.9 | 228.7 | |
Gathering and transportation | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 185.7 | 157 | 179.2 | |
Gathering and transportation | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Processing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 286.3 | 238.5 | 282.3 | |
Processing | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 39.2 | 29.1 | 24.1 | |
Processing | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1.5 | 2.4 | 2 | |
Processing | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 119.7 | 98.7 | 123.6 | |
Processing | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 125.9 | 108.3 | 132.6 | |
Processing | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
NGL services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 82.2 | 82.9 | 76 | |
NGL services | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
NGL services | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 82 | 82.6 | 75.8 | |
NGL services | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
NGL services | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.2 | 0.3 | 0.2 | |
NGL services | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 70.3 | 71.2 | 78.7 | |
Crude services | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 21.4 | 18.4 | 16.8 | |
Crude services | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 33.3 | 39.3 | 45.2 | |
Crude services | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 14.9 | 12.8 | 16.5 | |
Crude services | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.7 | 0.7 | 0.2 | |
Crude services | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Other services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 2.8 | 3 | 4.1 | |
Other services | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.8 | 0.2 | 1.2 | |
Other services | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1.6 | 1.7 | 1.6 | |
Other services | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (0.3) | 0.6 | 0.4 | |
Other services | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.7 | 0.5 | 0.9 | |
Other services | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Midstream services—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Midstream services—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Midstream services—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.2 | 2.4 | 0 | |
Midstream services—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.1 | 0.3 | 0.3 | |
Midstream services—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1.6 | 0 | 0 | |
Midstream services—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (1.9) | (2.7) | (0.3) | |
NGL services—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
NGL services—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
NGL services—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
NGL services—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
NGL services—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1.6 | |||
NGL services—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (1.6) | |||
Crude services—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude services—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude services—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude services—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.1 | 0.3 | 0.3 | |
Crude services—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude services—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (0.1) | (0.3) | $ (0.3) | |
Other services—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
Other services—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (2.4) | |||
Other services—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Other services—related parties | Permian | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Other services—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.2 | |||
Other services—related parties | Louisiana | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 2.4 | |||
Other services—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Other services—related parties | Oklahoma | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Other services—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Other services—related parties | North Texas | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | $ 0 | |||
Other services—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | $ (0.2) | |||
[1]Includes related party cost of sales of $28.2 million, $17.9 million, and $8.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Segment Information - Amortizat
Segment Information - Amortization Expense (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Assets | $ 8,651 | $ 8,483.2 |
Permian | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,661.4 | 2,358.6 |
Louisiana | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,310.7 | 2,428.6 |
Oklahoma | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,420.4 | 2,619.5 |
North Texas | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,094.6 | 896.8 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 163.9 | $ 179.7 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | $ 221.1 | $ 208.8 | $ 207.3 |
Cash paid (refunded) for income taxes | 0.7 | 0.3 | (0.7) |
Cash paid for operating leases included in cash flows from operating activities | 30.5 | 24.6 | 24.6 |
Non-cash investing activities: | |||
Non-cash accrual of property and equipment | 4.2 | 12 | (39.6) |
Non-cash right-of-use assets obtained in exchange for operating lease liabilities | 33.4 | 18.7 | 9.8 |
Non-cash acquisitions | 1.3 | 16.9 | 0 |
Non-cash financing activities: | |||
Receivable from sale of VEX | 0 | 0 | 10 |
Redemption of mandatorily redeemable non-controlling interest | $ (6.5) | $ 0 | $ (4) |
Other Information - Other Curre
Other Information - Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other current assets: | ||
Natural gas and NGLs inventory | $ 147.1 | $ 49.4 |
Prepaid expenses and other | 19.5 | 34.2 |
Other current assets | $ 166.6 | $ 83.6 |
Other Information - Other Cur_2
Other Information - Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other current liabilities: | ||
Accrued interest | $ 57.6 | $ 47.2 |
Accrued wages and benefits, including taxes | 38.1 | 33.1 |
Accrued ad valorem taxes | 32 | 28.3 |
Accrued settlement of mandatorily redeemable non-controlling interest | 10.5 | 0 |
Capital expenditure accruals | 23.4 | 23.2 |
Short-term lease liability | 26.2 | 18.1 |
Installment payable | 0 | 10 |
Inactive easement commitment | 0 | 9.8 |
Operating expense accruals | 18.5 | 9.6 |
Other | 23.3 | 23.6 |
Other current liabilities | $ 229.6 | $ 202.9 |