Enterprise Products Partners L.P.

SEC Filings

8-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 8-K on 01/31/2018
Entire Document
 


Enterprise Products Partners L.P.
   
Exhibit D
 
Distributable Cash Flow – UNAUDITED
       
($ in millions)
           
   
For the Three Months
Ended December 31,
   
For the Year
Ended December 31,
 
   
2017
   
2016
   
2017
   
2016
 
Net income attributable to limited partners (GAAP)
 
$
774.0
   
$
658.8
   
$
2,799.3
   
$
2,513.1
 
Adjustments to GAAP net income attributable to limited partners to derive non-
  GAAP distributable cash flow:
                               
Add depreciation, amortization and accretion expenses
   
422.6
     
396.7
     
1,644.0
     
1,552.0
 
Add distributions received from unconsolidated affiliates
   
130.0
     
118.0
     
483.0
     
451.5
 
Subtract equity in income of unconsolidated affiliates
   
(110.8
)
   
(92.2
)
   
(426.0
)
   
(362.0
)
Subtract sustaining capital expenditures (1)
   
(79.8
)
   
(72.6
)
   
(243.9
)
   
(252.0
)
Subtract net gains attributable to asset sales
   
(9.6
)
   
(0.2
)
   
(10.7
)
   
(2.5
)
Add cash proceeds from asset sales
   
33.9
     
2.6
     
40.1
     
46.5
 
Add non-cash expense or subtract benefit attributable to changes in fair
   value of the Liquidity Option Agreement
   
31.3
     
(3.5
)
   
64.3
     
24.5
 
Add non-cash expense attributable to changes in
   fair value of derivative instruments
   
37.0
     
2.9
     
22.8
     
45.0
 
Add monetization of interest rate derivative instruments
   
--
     
6.1
     
30.6
     
6.1
 
Add deferred income tax expense
   
5.0
     
1.3
     
6.1
     
6.6
 
Add non-cash asset impairment and related charges
   
14.6
     
24.4
     
49.8
     
53.5
 
Add or subtract other miscellaneous adjustments to derive non-GAAP
   distributable cash flow, as applicable
   
8.7
     
(11.2
)
   
42.9
     
20.5
 
Distributable cash flow (non-GAAP)
   
1,256.9
     
1,031.1
     
4,502.3
     
4,102.8
 
Adjustments to non-GAAP distributable cash flow to derive GAAP net cash flow
  provided by operating activities:
                               
Add sustaining capital expenditures reflected in distributable cash flow
   
79.8
     
72.6
     
243.9
     
252.0
 
Subtract cash proceeds from asset sales reflected in distributable cash flow
   
(33.9
)
   
(2.6
)
   
(40.1
)
   
(46.5
)
Subtract monetization of interest rate derivative instruments
   
--
     
(6.1
)
   
(30.6
)
   
(6.1
)
Add or subtract the net effect of changes in operating accounts, as applicable
   
517.6
     
308.8
     
5.5
     
(180.9
)
Add or subtract miscellaneous non-cash and other amounts to reconcile non-
  GAAP distributable cash flow with GAAP net cash flow provided by
  operating activities, as applicable
   
(0.7
)
   
4.0
     
(41.4
)
   
(54.5
)
Net cash flow provided by operating activities (GAAP)
 
$
1,819.7
   
$
1,407.8
   
$
4,639.6
   
$
4,066.8
 
                                 
(1) Sustaining capital expenditures are capital expenditures (as defined by GAAP) resulting from improvements to and major renewals of existing assets. Such expenditures serve to maintain existing operations but do not generate additional revenues.
 

Distributable cash flow  
Our management compares the distributable cash flow we generate to the cash distributions we expect to pay our partners.  Using this metric, management computes our distribution coverage ratio.  Distributable cash flow is an important non-GAAP liquidity measure for our limited partners since it serves as an indicator of our success in providing a cash return on investment.  Specifically, this liquidity measure indicates to investors whether or not we are generating cash flows at a level that can sustain or support an increase in our quarterly cash distributions.  Distributable cash flow is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is, in part, measured by its yield, which is based on the amount of cash distributions a partnership can pay to a unitholder.  The GAAP measure most directly comparable to distributable cash flow is net cash flow provided by operating activities.


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