(
Enterprise reported net income attributable to common unitholders of
Distributable Cash Flow (“DCF”), excluding proceeds from asset sales, increased 16 percent to
Adjusted cash flow provided by operating activities (“Adjusted CFFO”) was
Third Quarter Highlights
|
|
Three Months Ended
|
|||
|
($ in millions, except per unit amounts) |
|
2022 |
|
2021 |
|
Operating income |
$ |
1,712 |
$ |
1,513 |
|
Net income (1) |
$ |
1,392 |
$ |
1,182 |
|
Fully diluted earnings per common unit (1) |
$ |
0.62 |
$ |
0.52 |
|
Total gross operating margin (2) |
$ |
2,321 |
$ |
2,089 |
|
Adjusted EBITDA (2) |
$ |
2,258 |
$ |
2,015 |
|
Adjusted CFFO (2) |
$ |
1,950 |
$ |
1,722 |
|
Adjusted FCF (2) |
$ |
1,476 |
$ |
1,191 |
|
DCF (2) |
$ |
1,868 |
$ |
1,613 |
|
(1) |
Net income and fully diluted earnings per common unit for the third quarters of 2022 and 2021 include non-cash, asset impairment charges of |
|
|
(2) |
Total gross operating margin, adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), Adjusted CFFO, Adjusted FCF and DCF are non-generally accepted accounting principle (“non-GAAP”) financial measures that are defined and reconciled later in this press release. |
-
Gross operating margin, operating income and net income attributable to common unitholders for the third quarters of 2022 and 2021 included
$48 million and$47 million , respectively, of non-cash, mark-to-market (“MTM”) net gains on financial instruments used in our hedging activities. -
Capital investments were
$474 million in the third quarter of 2022, which included$397 million of organic growth capital expenditures and$77 million for sustaining capital expenditures. For the first nine months of 2022, capital investments were$4.4 billion , which included$3.2 billion for the acquisition ofNavitas Midstream ,$973 million of growth capital expenditures and$234 million for sustaining capital expenditures. -
During the third quarter of 2022, Enterprise repurchased approximately 3.9 million of its common units on the open market for approximately
$95 million . For the nine months endedSeptember 30, 2022 , the partnership repurchased approximately 5.3 million common units for approximately$130 million . Including these purchases, the partnership has utilized 31 percent of its authorized$2.0 billion unit buyback program.
Third Quarter Volume Highlights
|
|
Three Months Ended
|
||
|
|
2022 |
2021 |
|
|
NGL, crude oil, refined products & petrochemical |
|
|
|
|
pipeline volumes (million BPD) |
6.7 |
6.3 |
|
|
Marine terminal volumes (million BPD) |
1.7 |
1.5 |
|
|
Natural gas pipeline volumes (TBtus/d) |
17.5 |
14.6 |
|
|
NGL fractionation volumes (million BPD) |
1.4 |
1.3 |
|
|
Propylene plant production volumes (MBPD) |
101 |
96 |
|
|
Fee-based natural gas processing volumes (Bcf/d) |
5.2 |
4.0 |
|
|
Equity NGL-equivalent production volumes (MBPD) |
182 |
150 |
|
|
|
|||
|
As used in this press release, “NGL” means natural gas liquids, “BPD” means barrels per day, “MBPD” means thousand barrels per day, “MMcf/d” means million cubic feet per day, “Bcf/d” means billion cubic feet per day, “BBtus/d” means billion British thermal units per day and “TBtus/d” means trillion British thermal units per day. |
“Enterprise reported strong financial results for the third quarter of 2022,” said A.J. “Jim”
“During the third quarter, our pipelines transported a record 11.3 million barrels per day equivalent of NGLs, crude oil, natural gas, refined products and petrochemicals. Enterprise’s natural gas pipelines transported a record 17.5 trillion Btus per day for the third quarter of 2022. The partnership also set quarterly volumetric records for NGL fractionation, ethane export, butane isomerization and fee-based natural gas processing volumes,” stated
“Enterprise generated
Review of Third Quarter 2022 Results
Enterprise reported an 11 percent increase in total gross operating margin to
NGL Pipelines & Services – Gross operating margin from the NGL Pipelines & Services segment was
Enterprise’s natural gas processing and related NGL marketing business reported gross operating margin of
The partnership’s
The partnership’s
Gross operating margin from Enterprise’s
In general, higher NGL prices contributed to an increase in average processing margins for Enterprise’s natural gas processing business. The weighted-average indicative NGL price for the third quarter of 2022 increased 13 percent to
Gross operating margin from NGL marketing activities increased a net
Gross operating margin from the partnership’s NGL pipelines and storage business for the third quarter of 2022 increased to
Gross operating margin from the partnership’s Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined
A number of Enterprise’s NGL pipelines, including the Mid-America (“MAPL”) and Seminole NGL Pipeline Systems, Shin Oak NGL Pipeline and Chaparral NGL pipeline, serve the
Gross operating margin from the partnership’s NGL storage complex in
Enterprise’s NGL fractionation business reported gross operating margin of
The partnership’s gasoline hydrotreater, which commenced operations in
Enterprise’s Norco NGL fractionator in
Gross operating margin from Enterprise’s Chambers County NGL fractionation complex decreased a net
Crude Oil Pipelines & Services – Gross operating margin from the Crude Oil Pipelines & Services segment was
Gross operating margin from Enterprise’s EFS Midstream System decreased
Enterprise’s share of gross operating margin associated with the Seaway Pipeline decreased
Gross operating margin from Enterprise’s
Gross operating margin from other crude oil marketing activities increased
Gross operating margin from the partnership’s West Texas Pipeline System increased
Gross operating margin from Enterprise’s South Texas Crude Oil Pipeline System increased a net
Natural Gas Pipelines & Services – Gross operating margin from the Natural Gas Pipelines & Services segment increased 25 percent to
Gross operating margin from the partnership’s Texas Intrastate System increased
On a combined basis, gross operating margin from the partnership’s Jonah Gathering System, Piceance Basin Gathering System, and San Juan Gathering System in the
Enterprise’s
Gross operating margin from Enterprise’s natural gas marketing business decreased
Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment was
Gross operating margin from propylene production and related activities decreased
The octane enhancement and related operations business reported a net
The partnership’s ethylene exports and related activities generated a
Enterprise’s refined products pipelines and related activities reported a net
Gross operating margin for the marine transportation and other services business increased
Capitalization
Total debt principal outstanding at
At
Capital Investments
Total capital investments in the third quarter of 2022 were
Our current expectation for growth capital investments associated with sanctioned projects for 2022 and 2023 is approximately
Conference Call to Discuss Third Quarter 2022 Earnings
Today, Enterprise will host a conference call to discuss third quarter 2022 earnings. The call will be broadcast live over the Internet beginning at
Use of Non-GAAP Financial Measures
This press release and accompanying schedules include the non-GAAP financial measures of total gross operating margin, Adjusted CFFO, FCF, Adjusted FCF, DCF and Adjusted EBITDA. The accompanying schedules provide definitions of these non-GAAP financial measures and reconciliations to their most directly comparable financial measure calculated and presented in accordance with GAAP. Our non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flow provided by operating activities or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as we do.
Company Information and Use of Forward-Looking Statements
This press release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve certain risks and uncertainties, such as the partnership’s expectations regarding future results, capital expenditures, project completions, liquidity and financial market conditions. These risks and uncertainties include, among other things, direct and indirect effects of the COVID-19 pandemic, insufficient cash from operations, adverse market conditions, governmental regulations and other factors discussed in Enterprise’s filings with the
|
Exhibit A |
|||||||||||||||
|
Condensed Statements of Consolidated Operations – UNAUDITED |
|
||||||||||||||
|
($ in millions, except per unit amounts) |
|
|
|
||||||||||||
|
|
For the Three Months
|
For the Nine Months EndedSeptember 30, |
For the Twelve Months Ended
|
||||||||||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
Revenues |
$ |
15,468 |
|
$ |
10,832 |
|
$ |
44,536 |
|
$ |
29,437 |
|
$ |
55,906 |
|
|
Costs and expenses: |
|
|
|
|
|
||||||||||
|
Operating costs and expenses |
|
13,812 |
|
|
9,409 |
|
|
39,550 |
|
|
25,029 |
|
|
49,599 |
|
|
General and administrative costs |
|
55 |
|
|
47 |
|
|
179 |
|
|
155 |
|
|
233 |
|
|
Total costs and expenses |
|
13,867 |
|
|
9,456 |
|
|
39,729 |
|
|
25,184 |
|
|
49,832 |
|
|
Equity in income of unconsolidated affiliates |
|
111 |
|
|
137 |
|
|
335 |
|
|
447 |
|
|
471 |
|
|
Operating income |
|
1,712 |
|
|
1,513 |
|
|
5,142 |
|
|
4,700 |
|
|
6,545 |
|
|
Other income (expense): |
|
|
|
|
|
||||||||||
|
Interest expense |
|
(309 |
) |
|
(316 |
) |
|
(937 |
) |
|
(955 |
) |
|
(1,265 |
) |
|
Other, net |
|
7 |
|
|
1 |
|
|
12 |
|
|
3 |
|
|
14 |
|
|
Total other expense, net |
|
(302 |
) |
|
(315 |
) |
|
(925 |
) |
|
(952 |
) |
|
(1,251 |
) |
|
Income before income taxes |
|
1,410 |
|
|
1,198 |
|
|
4,217 |
|
|
3,748 |
|
|
5,294 |
|
|
Provision for income taxes |
|
(18 |
) |
|
(16 |
) |
|
(54 |
) |
|
(57 |
) |
|
(67 |
) |
|
Net income |
|
1,392 |
|
|
1,182 |
|
|
4,163 |
|
|
3,691 |
|
|
5,227 |
|
|
Net income attributable to noncontrolling interests |
|
(31 |
) |
|
(28 |
) |
|
(93 |
) |
|
(82 |
) |
|
(128 |
) |
|
Net income attributable to preferred units |
|
(1 |
) |
|
(1 |
) |
|
(3 |
) |
|
(3 |
) |
|
(4 |
) |
|
Net income attributable to common unitholders |
$ |
1,360 |
|
$ |
1,153 |
|
$ |
4,067 |
|
$ |
3,606 |
|
$ |
5,095 |
|
|
Per common unit data (fully diluted): |
|
|
|
|
|
||||||||||
|
Earnings per common unit |
$ |
0.62 |
|
$ |
0.52 |
|
$ |
1.85 |
|
$ |
1.64 |
|
$ |
2.32 |
|
|
Average common units outstanding (in millions) |
|
2,199 |
|
|
2,204 |
|
|
2,200 |
|
|
2,204 |
|
|
2,200 |
|
|
|
|
|
|
|
|
||||||||||
|
Supplemental financial data: |
|
|
|
|
|
||||||||||
|
Net cash flow provided by operating activities |
$ |
1,050 |
|
$ |
2,370 |
|
$ |
5,314 |
|
$ |
6,387 |
|
$ |
7,440 |
|
|
Cash flows used in investing activities |
$ |
441 |
|
$ |
492 |
|
$ |
4,309 |
|
$ |
1,721 |
|
$ |
4,723 |
|
|
Cash flows used in financing activities |
$ |
751 |
|
$ |
131 |
|
$ |
3,715 |
|
$ |
3,466 |
|
$ |
4,820 |
|
|
Total debt principal outstanding at end of period |
$ |
29,476 |
|
$ |
29,821 |
|
$ |
29,476 |
|
$ |
29,821 |
|
$ |
29,476 |
|
|
|
|
|
|
|
|
||||||||||
|
Non-GAAP Distributable Cash Flow (1) |
$ |
1,868 |
|
$ |
1,613 |
|
$ |
5,723 |
|
$ |
4,949 |
|
$ |
7,382 |
|
|
Non-GAAP Adjusted EBITDA (2) |
$ |
2,258 |
|
$ |
2,015 |
|
$ |
6,933 |
|
$ |
6,269 |
|
$ |
9,045 |
|
|
Non-GAAP Adjusted Cash flow from operations (3) |
$ |
1,950 |
|
$ |
1,722 |
|
$ |
5,996 |
|
$ |
5,340 |
|
$ |
7,803 |
|
|
Non-GAAP Free Cash Flow (4) |
$ |
576 |
|
$ |
1,839 |
|
$ |
894 |
|
$ |
4,574 |
|
$ |
2,616 |
|
|
Non-GAAP Adjusted Free Cash Flow (4) |
$ |
1,476 |
|
$ |
1,191 |
|
$ |
1,576 |
|
$ |
3,527 |
|
$ |
2,979 |
|
|
Gross operating margin by segment: |
|
|
|
|
|
||||||||||
|
NGL Pipelines & Services |
$ |
1,296 |
|
$ |
1,023 |
|
$ |
3,848 |
|
$ |
3,207 |
|
$ |
4,957 |
|
|
Crude Oil Pipelines & Services |
|
415 |
|
|
423 |
|
|
1,237 |
|
|
1,242 |
|
|
1,675 |
|
|
Natural Gas Pipelines & Services |
|
278 |
|
|
223 |
|
|
727 |
|
|
960 |
|
|
922 |
|
|
Petrochemical & Refined Products Services |
|
353 |
|
|
411 |
|
|
1,178 |
|
|
1,019 |
|
|
1,516 |
|
|
Total segment gross operating margin (5) |
|
2,342 |
|
|
2,080 |
|
|
6,990 |
|
|
6,428 |
|
|
9,070 |
|
|
Net adjustment for shipper make-up rights (6) |
|
(21 |
) |
|
9 |
|
|
(49 |
) |
|
46 |
|
|
(42 |
) |
|
Non-GAAP total gross operating margin (7) |
$ |
2,321 |
|
$ |
2,089 |
|
$ |
6,941 |
|
$ |
6,474 |
|
$ |
9,028 |
|
|
(1) |
See Exhibit F for reconciliation to GAAP net cash flow provided by operating activities. |
|
|
(2) |
See Exhibit G for reconciliation to GAAP net cash flow provided by operating activities. |
|
|
(3) |
See Exhibit E for reconciliation to GAAP net cash flow provided by operating activities. |
|
|
(4) |
See Exhibit D for reconciliation to GAAP net cash flow provided by operating activities. |
|
|
(5) |
Within the context of this table, total segment gross operating margin represents a subtotal and corresponds to measures similarly titled within the financial statement footnotes provided in our quarterly and annual filings with the |
|
|
(6) |
Gross operating margin by segment for NGL Pipelines & Services and Crude Oil Pipelines & Services reflects adjustments for non-refundable deferred transportation revenues relating to the make-up rights of committed shippers on certain major pipeline projects. These adjustments are included in managements’ evaluation of segment results. However, these adjustments are excluded from non-GAAP total gross operating margin in compliance with guidance from the |
|
|
(7) |
See Exhibit H for reconciliation to GAAP total operating income. |
|
Exhibit B |
|||||
|
Selected Operating Data – UNAUDITED |
|||||
|
|
|
|
|
||
|
|
For the Three Months
Ended |
For the Nine Months
Ended |
For the Twelve Months Ended
|
||
|
|
2022 |
2021 |
2022 |
2021 |
2022 |
|
Selected operating data: (1) |
|
|
|
|
|
|
NGL Pipelines & Services, net: |
|
|
|
|
|
|
NGL pipeline transportation volumes (MBPD) |
3,702 |
3,481 |
3,650 |
3,389 |
3,608 |
|
NGL marine terminal volumes (MBPD) |
747 |
664 |
713 |
661 |
697 |
|
NGL fractionation volumes (MBPD) |
1,371 |
1,254 |
1,341 |
1,229 |
1,338 |
|
Equity NGL-equivalent production volumes (MBPD) (2) |
182 |
150 |
188 |
169 |
194 |
|
Fee-based natural gas processing volumes (MMcf/d) (3,4) |
5,202 |
3,990 |
5,091 |
4,064 |
5,056 |
|
Crude Oil Pipelines & Services, net: |
|
|
|
|
|
|
Crude oil pipeline transportation volumes (MBPD) |
2,216 |
2,047 |
2,204 |
2,009 |
2,234 |
|
Crude oil marine terminal volumes (MBPD) |
824 |
588 |
799 |
642 |
761 |
|
Natural Gas Pipelines & Services, net: |
|
|
|
|
|
|
Natural gas pipeline transportation volumes (BBtus/d) (5) |
17,514 |
14,556 |
16,935 |
14,144 |
16,653 |
|
Petrochemical & Refined Products Services, net: |
|
|
|
|
|
|
Propylene production volumes (MBPD) |
101 |
96 |
105 |
98 |
105 |
|
Butane isomerization volumes (MBPD) |
122 |
108 |
109 |
85 |
103 |
|
Standalone DIB processing volumes (MBPD) |
165 |
153 |
159 |
155 |
157 |
|
Octane enhancement and related plant sales volumes (MBPD) (6) |
40 |
39 |
39 |
33 |
37 |
|
Pipeline transportation volumes, primarily refined products and petrochemicals (MBPD) |
758 |
782 |
750 |
889 |
742 |
|
Refined products and petrochemicals marine terminal volumes (MBPD) (7) |
166 |
264 |
200 |
243 |
200 |
|
Total, net: |
|
|
|
|
|
|
NGL, crude oil, petrochemical and refined products pipeline transportation volumes (MBPD) |
6,676 |
6,310 |
6,604 |
6,287 |
6,584 |
|
Natural gas pipeline transportation volumes (BBtus/d) |
17,514 |
14,556 |
16,935 |
14,144 |
16,653 |
|
Equivalent pipeline transportation volumes (MBPD) (8) |
11,285 |
10,141 |
11,061 |
10,009 |
10,966 |
|
NGL, crude oil, refined products and petrochemical marine terminal volumes (MBPD) |
1,737 |
1,516 |
1,712 |
1,546 |
1,658 |
|
(1) |
Operating rates are reported on a net basis, which take into account our ownership interests in certain joint ventures and include volumes for newly constructed assets from the related in-service dates and for recently purchased assets from the related acquisition dates. |
|
|
(2) |
Primarily represents the NGL and condensate volumes we earn and take title to in connection with our processing activities. The total equity NGL-equivalent production volumes also include residue natural gas volumes from our natural gas processing business. |
|
|
(3) |
Volumes reported correspond to the revenue streams earned by our gas plants. “MMcf/d” means million cubic feet per day. |
|
|
(4) |
Fee-based natural gas processing volumes are measured at either the wellhead or plant inlet in MMcf/d. |
|
|
(5) |
“BBtus/d” means billion British thermal units per day. |
|
|
(6) |
Reflects aggregate sales volumes for our octane enhancement and isobutane dehydrogenation (“iBDH”) facilities located at our |
|
|
(7) |
In addition to exports of refined products, these amounts include loading volumes at our ethylene export terminal. |
|
|
(8) |
Represents total NGL, crude oil, refined products and petrochemical transportation volumes plus equivalent energy volumes where 3.8 million British thermal units (“MMBtus”) of natural gas transportation volumes are equivalent to one barrel of NGLs transported. |
|
|
Exhibit C | ||||||||
|
Selected Commodity Price Information – UNAUDITED |
|||||||||
|
|
|
|
|
|
|
|
Polymer |
Refinery |
|
|
|
Natural |
|
|
Normal |
|
Natural |
Grade |
Grade |
|
|
|
Gas, |
Ethane, |
Propane, |
Butane, |
Isobutane, |
Gasoline, |
Propylene, |
Propylene, |
|
|
|
$/MMBtu (1) |
$/gallon (2) |
$/gallon (2) |
$/gallon (2) |
$/gallon (2) |
$/gallon (2) |
$/pound (3) |
$/pound (3) |
|
|
2021 by quarter: |
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
|
|
|
|
|
|
|
|
|
Third Quarter |
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
|
|
|
|
|
|
|
|
|
2021 Averages |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 by quarter: |
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
|
|
|
|
|
|
|
|
|
Third Quarter |
|
|
|
|
|
|
|
|
|
|
2022 Averages |
|
|
|
|
|
|
|
|
|
|
(1) |
Natural gas prices are based on Henry-Hub Inside FERC commercial index prices as reported by Platts, which is a division of S&P Global, Inc. |
|
|
(2) |
NGL prices for ethane, propane, normal butane, isobutane and natural gasoline are based on Mont Belvieu Non-TET commercial index prices as reported by |
|
|
(3) |
Polymer grade propylene prices represent average contract pricing for such product as reported by IHS. Refinery grade propylene prices represent weighted-average spot prices for such product as reported by IHS. |
|
|
WTI |
|
|
LLS |
|
|
Crude Oil, |
Crude Oil, |
Crude Oil |
Crude Oil, |
|
|
$/barrel (1) |
$/barrel (2) |
$/barrel (2) |
$/barrel (3) |
|
2021 by quarter: |
|
|
|
|
|
First Quarter |
|
|
|
|
|
Second Quarter |
|
|
|
|
|
Third Quarter |
|
|
|
|
|
Fourth Quarter |
|
|
|
|
|
2021 Averages |
|
|
|
|
|
|
|
|
|
|
|
2022 by quarter: |
|
|
|
|
|
First Quarter |
|
|
|
|
|
Second Quarter |
|
|
|
|
|
Third Quarter |
|
|
|
|
|
2022 Averages |
|
|
|
|
|
(1) |
West Texas Intermediate (“WTI”) prices are based on commercial index prices at |
|
|
(2) |
|
|
|
(3) |
Light Louisiana Sweet (“LLS”) prices are based on commercial index prices as reported by Platts. |
The weighted-average indicative market price for NGLs (based on prices for such products at
|
Exhibit D |
||||||||||||
|
Free Cash Flow and Adjusted Free Cash Flow – UNAUDITED |
||||||||||||
|
($ in millions) |
|
|
||||||||||
|
|
For the Three Months
Ended |
For the Nine Months
Ended |
||||||||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Free Cash Flow (“FCF”) and Adjusted FCF |
|
|
|
|
||||||||
|
Net cash flow provided by operating activities (GAAP) |
$ |
1,050 |
|
$ |
2,370 |
|
$ |
5,314 |
|
$ |
6,387 |
|
|
Adjustments to reconcile net cash flow provided by operating activities to FCF and Adjusted FCF (addition or subtraction indicated by sign): |
|
|
|
|
||||||||
|
Cash used in investing activities |
|
(441 |
) |
|
(492 |
) |
|
(4,309 |
) |
|
(1,721 |
) |
|
Cash contributions from noncontrolling interests |
|
– |
|
|
5 |
|
|
4 |
|
|
23 |
|
|
Cash distributions paid to noncontrolling interests |
|
(33 |
) |
|
(44 |
) |
|
(115 |
) |
|
(115 |
) |
|
FCF (non-GAAP) |
$ |
576 |
|
$ |
1,839 |
|
$ |
894 |
|
$ |
4,574 |
|
|
Net effect of changes in operating accounts, as applicable |
|
900 |
|
|
(648 |
) |
|
682 |
|
|
(1,047 |
) |
|
Adjusted FCF (non-GAAP) |
$ |
1,476 |
|
$ |
1,191 |
|
$ |
1,576 |
|
$ |
3,527 |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|||||||||
|
For the Twelve Months
Ended |
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
|
|||||
|
Net cash flow provided by operating activities (GAAP) |
$ |
7,440 |
|
$ |
7,986 |
|
|
|
||||
|
Adjustments to reconcile net cash flow provided by operating activities to FCF and Adjusted FCF (addition or subtraction indicated by sign): |
|
|
|
|
||||||||
|
Cash used in investing activities |
|
(4,723 |
) |
|
(2,277 |
) |
|
|
||||
|
Cash contributions from noncontrolling interests |
|
53 |
|
|
33 |
|
|
|
||||
|
Cash distributions paid to noncontrolling interests |
|
(154 |
) |
|
(148 |
) |
|
|
||||
|
FCF (non-GAAP) |
$ |
2,616 |
|
$ |
5,594 |
|
|
|
||||
|
Net effect of changes in operating accounts, as applicable |
|
363 |
|
|
(971 |
) |
|
|
||||
|
Adjusted FCF (non-GAAP) |
$ |
2,979 |
|
$ |
4,623 |
|
|
|
||||
FCF is a non-GAAP measure of how much cash a business generates after accounting for capital expenditures such as plants or pipelines. Additionally, Adjusted FCF is a non-GAAP measure of how much cash a business generates, excluding the net effect of changes in operating accounts, after accounting for capital expenditures. We believe that FCF is important to traditional investors since it reflects the amount of cash available for reducing debt, investing in additional capital projects and/or paying distributions. We believe that Adjusted FCF is also important to traditional investors for the same reasons as FCF, without regard for fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period. Since we partner with other companies to fund certain capital projects of our consolidated subsidiaries, our determination of FCF and Adjusted FCF appropriately reflect the amount of cash contributed from and distributed to noncontrolling interests.
|
Exhibit E |
|||||||||||||||
|
Adjusted Cash flow from operations – UNAUDITED |
|||||||||||||||
|
($ in millions) |
|
|
|
||||||||||||
|
|
For the Three Months
Ended |
For the Nine Months
Ended |
For the Twelve Months
Ended |
||||||||||||
|
|
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
Adjusted Cash flow from operations (“Adjusted CFFO”) |
|
|
|
|
|
|
|||||||||
|
Net cash flow provided by operating activities (GAAP) |
$ |
1,050 |
$ |
2,370 |
|
$ |
5,314 |
$ |
6,387 |
|
$ |
7,440 |
$ |
7,986 |
|
|
Adjustments to reconcile net cash flow provided by operating activities to Adjusted Cash flow from operations (addition or subtraction indicated by sign): |
|
|
|
|
|
|
|||||||||
|
Net effect of changes in operating accounts, as applicable |
|
900 |
|
(648 |
) |
|
682 |
|
(1,047 |
) |
|
363 |
|
(971 |
) |
|
Adjusted CFFO (non-GAAP) |
$ |
1,950 |
$ |
1,722 |
|
$ |
5,996 |
$ |
5,340 |
|
$ |
7,803 |
$ |
7,015 |
|
Adjusted CFFO is a non-GAAP measure that represents net cash flow provided by operating activities before the net effect of changes in operating accounts, as summarized from the Company’s Unaudited Condensed Consolidated Statements of Cash Flows. We believe that it is important to consider this non-GAAP measure as it can often be a better way to measure the amount of cash generated from our operations that can be used to fund our capital investments or return value to our investors through cash distributions and buybacks, without regard for fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period.
|
Exhibit F |
|||||||||||||||
|
Distributable Cash Flow – UNAUDITED |
|
||||||||||||||
|
($ in millions) |
|
|
|
||||||||||||
|
|
|
|
For the Twelve Months Ended
|
||||||||||||
|
|
For the Three Months
Ended |
For the Nine Months
Ended |
|||||||||||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
Distributable Cash Flow (“DCF”) |
|
|
|
|
|
||||||||||
|
Net income attributable to common unitholders (GAAP) |
$ |
1,360 |
|
$ |
1,153 |
|
$ |
4,067 |
|
$ |
3,606 |
|
$ |
5,095 |
|
|
Adjustments to net income attributable to common unitholders to derive DCF (addition or subtraction indicated by sign): |
|
|
|
|
|
||||||||||
|
Depreciation, amortization and accretion expenses |
|
558 |
|
|
535 |
|
|
1,675 |
|
|
1,594 |
|
|
2,221 |
|
|
Cash distributions received from unconsolidated affiliates |
|
132 |
|
|
148 |
|
|
411 |
|
|
447 |
|
|
554 |
|
|
Equity in income of unconsolidated affiliates |
|
(111 |
) |
|
(137 |
) |
|
(335 |
) |
|
(447 |
) |
|
(471 |
) |
|
Asset impairment charges |
|
29 |
|
|
29 |
|
|
48 |
|
|
113 |
|
|
168 |
|
|
Change in fair market value of derivative instruments |
|
(48 |
) |
|
(47 |
) |
|
46 |
|
|
(86 |
) |
|
105 |
|
|
Deferred income tax expense |
|
8 |
|
|
9 |
|
|
24 |
|
|
33 |
|
|
31 |
|
|
Sustaining capital expenditures (1) |
|
(77 |
) |
|
(70 |
) |
|
(234 |
) |
|
(331 |
) |
|
(333 |
) |
|
Other, net (2) |
|
11 |
|
|
(15 |
) |
|
1 |
|
|
(113 |
) |
|
(14 |
) |
|
Operational DCF |
|
1,862 |
|
|
1,605 |
|
|
5,703 |
|
|
4,816 |
|
|
7,356 |
|
|
Proceeds from asset sales |
|
6 |
|
|
8 |
|
|
20 |
|
|
58 |
|
|
26 |
|
|
Monetization of interest rate derivative instruments accounted for as cash flow hedges |
|
– |
|
|
– |
|
|
– |
|
|
75 |
|
|
– |
|
|
DCF (non-GAAP) |
$ |
1,868 |
|
$ |
1,613 |
|
$ |
5,723 |
|
$ |
4,949 |
|
$ |
7,382 |
|
|
Adjustments to reconcile DCF with net cash flow provided by operating activities (addition or subtraction indicated by sign): |
|
|
|
|
|
||||||||||
|
Net effect of changes in operating accounts, as applicable |
|
(900 |
) |
|
648 |
|
|
(682 |
) |
|
1,047 |
|
|
(363 |
) |
|
Sustaining capital expenditures |
|
77 |
|
|
70 |
|
|
234 |
|
|
331 |
|
|
333 |
|
|
Other, net |
|
5 |
|
|
39 |
|
|
39 |
|
|
60 |
|
|
88 |
|
|
Net cash flow provided by operating activities (GAAP) |
$ |
1,050 |
|
$ |
2,370 |
|
$ |
5,314 |
|
$ |
6,387 |
|
$ |
7,440 |
|
|
(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. |
|
|
(2) |
The first nine months of 2021 include |
DCF is an important non-GAAP liquidity measure for our common unitholders 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. DCF 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 common unitholder.
|
Exhibit G |
|||||||||||||||
|
Adjusted EBITDA - UNAUDITED |
|
||||||||||||||
|
($ in millions) |
|
|
|
||||||||||||
|
|
|
|
For the Twelve Months Ended
|
||||||||||||
|
|
For the Three Months
Ended |
For the Nine Months
Ended |
|||||||||||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
Net income (GAAP) |
$ |
1,392 |
|
$ |
1,182 |
|
$ |
4,163 |
|
$ |
3,691 |
|
$ |
5,227 |
|
|
Adjustments to net income to derive Adjusted EBITDA (addition or subtraction indicated by sign): |
|
|
|
|
|
||||||||||
|
Depreciation, amortization and accretion in costs and expenses (1) |
|
536 |
|
|
511 |
|
|
1,606 |
|
|
1,531 |
|
|
2,130 |
|
|
Interest expense, including related amortization |
|
309 |
|
|
316 |
|
|
937 |
|
|
955 |
|
|
1,265 |
|
|
Cash distributions received from unconsolidated affiliates |
|
132 |
|
|
148 |
|
|
411 |
|
|
447 |
|
|
554 |
|
|
Equity in income of unconsolidated affiliates |
|
(111 |
) |
|
(137 |
) |
|
(335 |
) |
|
(447 |
) |
|
(471 |
) |
|
Asset impairment charges |
|
29 |
|
|
29 |
|
|
48 |
|
|
113 |
|
|
168 |
|
|
Provision for income taxes |
|
18 |
|
|
16 |
|
|
54 |
|
|
57 |
|
|
67 |
|
|
Change in fair market value of commodity derivative instruments |
|
(48 |
) |
|
(47 |
) |
|
46 |
|
|
(86 |
) |
|
105 |
|
|
Other, net |
|
1 |
|
|
(3 |
) |
|
3 |
|
|
8 |
|
|
– |
|
|
Adjusted EBITDA (non-GAAP) |
|
2,258 |
|
|
2,015 |
|
|
6,933 |
|
|
6,269 |
|
|
9,045 |
|
|
Adjustments to reconcile Adjusted EBITDA to net cash flow provided by operating activities (addition or subtraction indicated by sign): |
|
|
|
|
|
||||||||||
|
Interest expense, including related amortization |
|
(309 |
) |
|
(316 |
) |
|
(937 |
) |
|
(955 |
) |
|
(1,265 |
) |
|
Deferred income tax expense |
|
8 |
|
|
9 |
|
|
24 |
|
|
33 |
|
|
31 |
|
|
Provision for income taxes |
|
(18 |
) |
|
(16 |
) |
|
(54 |
) |
|
(57 |
) |
|
(67 |
) |
|
Net effect of changes in operating accounts, as applicable |
|
(900 |
) |
|
648 |
|
|
(682 |
) |
|
1,047 |
|
|
(363 |
) |
|
Other, net |
|
11 |
|
|
30 |
|
|
30 |
|
|
50 |
|
|
59 |
|
|
Net cash flow provided by operating activities (GAAP) |
$ |
1,050 |
|
$ |
2,370 |
|
$ |
5,314 |
|
$ |
6,387 |
|
$ |
7,440 |
|
|
(1) |
Excludes amortization of major maintenance costs for reaction-based plants, which are a component of Adjusted EBITDA. |
Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our financial statements, such as investors, commercial banks, research analysts and rating agencies, to assess the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; the ability of our assets to generate cash sufficient to pay interest and support our indebtedness; and the viability of projects and the overall rates of return on alternative investment opportunities.
Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measure most directly comparable to Adjusted EBITDA is net cash flow provided by operating activities.
|
Exhibit H |
|||||||||||||||
|
Gross Operating Margin – UNAUDITED |
|
||||||||||||||
|
($ in millions) |
|
|
|
||||||||||||
|
|
|
|
For the Twelve Months Ended
|
||||||||||||
|
|
For the Three Months
Ended |
For the Nine Months
Ended |
|||||||||||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
Total gross operating margin (non-GAAP) |
$ |
2,321 |
|
$ |
2,089 |
|
$ |
6,941 |
|
$ |
6,474 |
|
$ |
9,028 |
|
|
Adjustments to reconcile total gross operating margin to total operating income (addition or subtraction indicated by sign): |
|
|
|
|
|
||||||||||
|
Depreciation, amortization and accretion expense in operating costs and expenses (1) |
|
(524 |
) |
|
(503 |
) |
|
(1,569 |
) |
|
(1,498 |
) |
|
(2,082 |
) |
|
Asset impairment charges in operating costs and expenses |
|
(29 |
) |
|
(29 |
) |
|
(48 |
) |
|
(113 |
) |
|
(168 |
) |
|
Net gains (losses) attributable to asset sales and related matters in operating costs and expenses |
|
(1 |
) |
|
3 |
|
|
(3 |
) |
|
(8 |
) |
|
– |
|
|
General and administrative costs |
|
(55 |
) |
|
(47 |
) |
|
(179 |
) |
|
(155 |
) |
|
(233 |
) |
|
Total operating income (GAAP) |
$ |
1,712 |
|
$ |
1,513 |
|
$ |
5,142 |
|
$ |
4,700 |
|
$ |
6,545 |
|
|
(1) |
Excludes amortization of major maintenance costs for reaction-based plants, which are a component of gross operating margin. |
We evaluate segment performance based on our financial measure of gross operating margin. Gross operating margin is an important performance measure of the core profitability of our operations and forms the basis of our internal financial reporting. We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results.
The term “total gross operating margin” represents GAAP operating income exclusive of (i) depreciation, amortization and accretion expenses (excluding amortization of major maintenance costs for reaction-based plants), (ii) impairment charges, (iii) gains and losses attributable to asset sales and related matters, and (iv) general and administrative costs. Total gross operating margin includes equity in the earnings of unconsolidated affiliates, but is exclusive of other income and expense transactions, income taxes, the cumulative effect of changes in accounting principles and extraordinary charges. Total gross operating margin is presented on a 100 percent basis before any allocation of earnings to noncontrolling interests. The GAAP financial measure most directly comparable to total gross operating margin is operating income.
Total gross operating margin excludes amounts attributable to shipper make-up rights as described in footnote (6) to Exhibit A of this press release.
|
Exhibit I |
|||||||||||
|
Other Information – UNAUDITED |
|
||||||||||
|
($ in millions) |
|
|
|
||||||||
|
|
|
|
For the Twelve Months Ended
|
||||||||
|
|
For the Three Months
Ended |
For the Nine Months
Ended |
|||||||||
|
|
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
2022 |
|
Capital investments: |
|
|
|
|
|
||||||
|
Capital expenditures |
$ |
472 |
$ |
505 |
|
$ |
1,203 |
$ |
1,806 |
$ |
1,620 |
|
Cash used for business combinations, net of cash received |
|
– |
|
– |
|
|
3,204 |
|
– |
|
3,204 |
|
Investments in unconsolidated affiliates |
|
1 |
|
– |
|
|
1 |
|
1 |
|
2 |
|
Other investing activities |
|
1 |
|
(1 |
) |
|
3 |
|
13 |
|
10 |
|
Total capital investments |
$ |
474 |
$ |
504 |
|
$ |
4,411 |
$ |
1,820 |
$ |
4,836 |
The following table summarizes the non-cash mark-to-market gains (losses) for the periods indicated:
|
|
|
|
For the Twelve Months Ended
|
||||||||||||
|
|
For the Three Months
Ended |
For the Nine Months
Ended |
|||||||||||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
Mark-to-market gains (losses) in gross operating margin: |
|
|
|
|
|
||||||||||
|
NGL Pipelines & Services |
$ |
18 |
|
$ |
38 |
|
$ |
(12 |
) |
$ |
90 |
|
$ |
(62 |
) |
|
Crude Oil Pipelines & Services |
|
31 |
|
|
11 |
|
|
(38 |
) |
|
– |
|
|
(41 |
) |
|
Natural Gas Pipelines & Services |
|
(1 |
) |
|
1 |
|
|
(2 |
) |
|
– |
|
|
(4 |
) |
|
Petrochemical & Refined Products Services |
|
– |
|
|
(3 |
) |
|
6 |
|
|
(4 |
) |
|
2 |
|
|
Total mark-to-market impact on gross operating margin |
$ |
48 |
|
$ |
47 |
|
$ |
(46 |
) |
$ |
86 |
|
$ |
(105 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221101005379/en/
Source:
1-866-230-0745 
investor.relations@eprod.com 
