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Name | Symbol | Market | Type |
---|---|---|---|
DCP Midstream LP | NYSE:DCP-B | NYSE | Preference Share |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 25.00 | 0 | 01:00:00 |
ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 03-0567133 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
6900 E. Layton Ave, Suite 900 Denver, Colorado | 80237 | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common units representing limited partnership interests | DCP | New York Stock Exchange | ||||||||||||
7.875% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units | DCP PRB | New York Stock Exchange | ||||||||||||
7.95% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units | DCP PRC | New York Stock Exchange |
Large accelerated filer | ý | Accelerated filer | ¨ | Emerging growth company | ¨ | ||||||||||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Item | Page | |||||||
PART I. FINANCIAL INFORMATION | ||||||||
1 | Financial Statements (unaudited): | |||||||
Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 | ||||||||
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2022 and 2021 | ||||||||
Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2022 and 2021 | ||||||||
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021 | ||||||||
Condensed Consolidated Statement of Changes in Equity for the Three Months Ended March 31, 2022 | ||||||||
Condensed Consolidated Statement of Changes in Equity for the Three Months Ended March 31, 2021 | ||||||||
Notes to the Condensed Consolidated Financial Statements | ||||||||
2 | Management's Discussion and Analysis of Financial Condition and Results of Operations | |||||||
3 | Quantitative and Qualitative Disclosures about Market Risk | |||||||
4 | Controls and Procedures | |||||||
PART II. OTHER INFORMATION | ||||||||
1 | Legal Proceedings | |||||||
1A | Risk Factors | |||||||
6 | Exhibits | |||||||
Signatures |
ASU | accounting standards update | |||||||
Bbl | barrel | |||||||
Bbls/d | barrels per day | |||||||
Bcf | billion cubic feet | |||||||
Bcf/d | billion cubic feet per day | |||||||
Btu | British thermal unit, a measurement of energy | |||||||
Credit Agreement | Credit Agreement governing our $1.4 billion unsecured revolving credit facility, maturing March 18, 2027 | |||||||
Fractionation | the process by which natural gas liquids are separated into individual components | |||||||
GAAP | generally accepted accounting principles in the United States of America | |||||||
LIBOR | London Interbank Offered Rate | |||||||
MBbls | thousand barrels | |||||||
MBbls/d | thousand barrels per day | |||||||
MMBtu | million Btus | |||||||
MMBtu/d | million Btus per day | |||||||
MMcf | million cubic feet | |||||||
MMcf/d | million cubic feet per day | |||||||
NGLs | natural gas liquids | |||||||
OPEC | Organization of the Petroleum Exporting Countries | |||||||
OPEC+ | OPEC members plus ten other oil producing countries | |||||||
OPIS | Oil Price Information Service | |||||||
SEC | U.S. Securities and Exchange Commission | |||||||
Securitization Facility | $350 million Accounts Receivable Securitization Facility, maturing August 12, 2024 | |||||||
SOFR | Secured Overnight Financing Rate | |||||||
TBtu/d | trillion Btus per day | |||||||
Throughput | the volume of product transported or passing through a pipeline or other facility |
March 31, 2022 | December 31, 2021 | ||||||||||
ASSETS | (millions) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1 | $ | 1 | |||||||
Accounts receivable: | |||||||||||
Trade, net of allowance for credit losses of $1 and $2 million, respectively | 1,130 | 1,029 | |||||||||
Affiliates | 619 | 389 | |||||||||
Other | 11 | 7 | |||||||||
Inventories | 46 | 77 | |||||||||
Unrealized gains on derivative instruments | 94 | 86 | |||||||||
Collateral cash deposits | 261 | 128 | |||||||||
Other | 18 | 32 | |||||||||
Total current assets | 2,180 | 1,749 | |||||||||
Property, plant and equipment, net | 7,632 | 7,701 | |||||||||
Intangible assets, net | 37 | 39 | |||||||||
Investments in unconsolidated affiliates | 3,554 | 3,578 | |||||||||
Unrealized gains on derivative instruments | 35 | 10 | |||||||||
Operating lease assets | 101 | 104 | |||||||||
Other long-term assets | 212 | 199 | |||||||||
Total assets | $ | 13,751 | $ | 13,380 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable: | |||||||||||
Trade | $ | 1,237 | $ | 977 | |||||||
Affiliates | 263 | 205 | |||||||||
Other | 25 | 16 | |||||||||
Current debt | 505 | 355 | |||||||||
Unrealized losses on derivative instruments | 288 | 145 | |||||||||
Accrued interest | 68 | 79 | |||||||||
Accrued taxes | 65 | 51 | |||||||||
Accrued wages and benefits | 31 | 60 | |||||||||
Capital spending accrual | 2 | 7 | |||||||||
Other | 96 | 115 | |||||||||
Total current liabilities | 2,580 | 2,010 | |||||||||
Long-term debt | 4,838 | 5,078 | |||||||||
Unrealized losses on derivative instruments | 78 | 30 | |||||||||
Deferred income taxes | 34 | 34 | |||||||||
Operating lease liabilities | 92 | 93 | |||||||||
Other long-term liabilities | 258 | 259 | |||||||||
Total liabilities | 7,880 | 7,504 | |||||||||
Equity: | |||||||||||
Series A preferred limited partners (500,000 preferred units authorized, issued and outstanding, respectively) | 498 | 489 | |||||||||
Series B preferred limited partners (6,450,000 preferred units authorized, issued and outstanding, respectively) | 156 | 156 | |||||||||
Series C preferred limited partners (4,400,000 preferred units authorized, issued and outstanding, respectively) | 106 | 106 | |||||||||
Limited partners (208,383,409 and 208,373,672 common units authorized, issued and outstanding, respectively) | 5,092 | 5,106 | |||||||||
Accumulated other comprehensive loss | (6) | (6) | |||||||||
Total partners’ equity | 5,846 | 5,851 | |||||||||
Noncontrolling interests | 25 | 25 | |||||||||
Total equity | 5,871 | 5,876 | |||||||||
Total liabilities and equity | $ | 13,751 | $ | 13,380 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(millions, except per unit amounts) | ||||||||||||||
Operating revenues: | ||||||||||||||
Sales of natural gas, NGLs and condensate | $ | 2,328 | $ | 2,014 | ||||||||||
Sales of natural gas, NGLs and condensate to affiliates | 1,127 | 555 | ||||||||||||
Transportation, processing and other | 155 | 118 | ||||||||||||
Trading and marketing losses, net | (235) | (369) | ||||||||||||
Total operating revenues | 3,375 | 2,318 | ||||||||||||
Operating costs and expenses: | ||||||||||||||
Purchases and related costs | 2,719 | 1,763 | ||||||||||||
Purchases and related costs from affiliates | 99 | 55 | ||||||||||||
Transportation and related costs from affiliates | 257 | 219 | ||||||||||||
Operating and maintenance expense | 152 | 149 | ||||||||||||
Depreciation and amortization expense | 90 | 91 | ||||||||||||
General and administrative expense | 55 | 38 | ||||||||||||
Gain on sale of assets, net | (7) | — | ||||||||||||
Total operating costs and expenses | 3,365 | 2,315 | ||||||||||||
Operating income | 10 | 3 | ||||||||||||
Earnings from unconsolidated affiliates | 143 | 128 | ||||||||||||
Interest expense, net | (71) | (77) | ||||||||||||
Income before income taxes | 82 | 54 | ||||||||||||
Income tax expense | (1) | — | ||||||||||||
Net income | 81 | 54 | ||||||||||||
Net income attributable to noncontrolling interests | (1) | (1) | ||||||||||||
Net income attributable to partners | 80 | 53 | ||||||||||||
Series A preferred limited partners' interest in net income | (9) | (9) | ||||||||||||
Series B preferred limited partners' interest in net income | (3) | (3) | ||||||||||||
Series C preferred limited partners' interest in net income | (2) | (2) | ||||||||||||
Net income allocable to limited partners | $ | 66 | $ | 39 | ||||||||||
Net income per limited partner unit — basic and diluted | $ | 0.32 | $ | 0.19 | ||||||||||
Weighted-average limited partner units outstanding — basic | 208.4 | 208.4 | ||||||||||||
Weighted-average limited partner units outstanding — diluted | 208.8 | 208.5 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(millions) | ||||||||||||||
Net income | $ | 81 | $ | 54 | ||||||||||
Other comprehensive income: | ||||||||||||||
Total other comprehensive income | — | — | ||||||||||||
Total comprehensive income | 81 | 54 | ||||||||||||
Total comprehensive income attributable to noncontrolling interests | (1) | (1) | ||||||||||||
Total comprehensive income attributable to partners | $ | 80 | $ | 53 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(millions) | |||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 81 | $ | 54 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization expense | 90 | 91 | |||||||||
Earnings from unconsolidated affiliates | (143) | (128) | |||||||||
Distributions from unconsolidated affiliates | 168 | 129 | |||||||||
Net unrealized losses on derivative instruments | 176 | 53 | |||||||||
Gain on sale of assets, net | (7) | — | |||||||||
Other, net | 2 | 2 | |||||||||
Change in operating assets and liabilities, which (used) provided cash: | |||||||||||
Accounts receivable | (334) | (245) | |||||||||
Inventories | 31 | 8 | |||||||||
Accounts payable | 327 | 170 | |||||||||
Other assets and liabilities | (202) | (138) | |||||||||
Net cash provided by (used in) operating activities | 189 | (4) | |||||||||
INVESTING ACTIVITIES: | |||||||||||
Capital expenditures | (23) | (14) | |||||||||
Investments in unconsolidated affiliates | (1) | — | |||||||||
Proceeds from sale of assets | 16 | — | |||||||||
Net cash used in investing activities | (8) | (14) | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Proceeds from debt | 1,542 | 1,143 | |||||||||
Payments of debt | (1,632) | (1,086) | |||||||||
Distributions to preferred limited partners | (5) | (5) | |||||||||
Distributions to limited partners and general partner | (81) | (81) | |||||||||
Distributions to noncontrolling interests | (1) | (1) | |||||||||
Debt issuance costs | (4) | — | |||||||||
Net cash used in financing activities | (181) | (30) | |||||||||
Net change in cash, cash equivalents and restricted cash | — | (48) | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 1 | 56 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 1 | $ | 8 | |||||||
Reconciliation of cash, cash equivalents, and restricted cash: | March 31, 2022 | March 31, 2021 | |||||||||
Cash and cash equivalents | $ | 1 | $ | 5 | |||||||
Restricted cash included in other current assets | — | 3 | |||||||||
Total cash, cash equivalents, and restricted cash | $ | 1 | $ | 8 | |||||||
Partners' Equity | ||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Limited Partners | Series B Preferred Limited Partners | Series C Preferred Limited Partners | Limited Partners | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | 489 | $ | 156 | $ | 106 | $ | 5,106 | $ | (6) | $ | 25 | $ | 5,876 | ||||||||||||||||||||||||||||||
Net income | 9 | 3 | 2 | 66 | — | 1 | 81 | |||||||||||||||||||||||||||||||||||||
Distributions to unitholders | — | (3) | (2) | (81) | — | — | (86) | |||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | (1) | (1) | |||||||||||||||||||||||||||||||||||||
Equity based compensation | — | — | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | 498 | $ | 156 | $ | 106 | $ | 5,092 | $ | (6) | $ | 25 | $ | 5,871 | ||||||||||||||||||||||||||||||
Partner's Equity | |||||||||||||||||||||||||||||||||||||||||
Series A Preferred Limited Partners | Series B Preferred Limited Partners | Series C Preferred Limited Partners | Limited Partners | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | $ | 489 | $ | 156 | $ | 106 | $ | 5,090 | $ | (7) | $ | 27 | $ | 5,861 | |||||||||||||||||||||||||||
Net income | 9 | 3 | 2 | 39 | — | 1 | 54 | ||||||||||||||||||||||||||||||||||
Distributions to unitholders | — | (3) | (2) | (81) | — | — | (86) | ||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||
Equity based compensation | — | — | — | 4 | — | — | 4 | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | 498 | $ | 156 | $ | 106 | $ | 5,052 | $ | (7) | $ | 27 | $ | 5,832 | |||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||
Logistics and Marketing | Gathering and Processing | Eliminations | Total | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Sales of natural gas | $ | 1,063 | $ | 882 | $ | (821) | $ | 1,124 | ||||||||||||||||||
Sales of NGLs and condensate (a) | 2,122 | 1,282 | (1,073) | 2,331 | ||||||||||||||||||||||
Transportation, processing and other | 19 | 136 | — | 155 | ||||||||||||||||||||||
Trading and marketing losses, net (b) | (41) | (194) | — | (235) | ||||||||||||||||||||||
Total operating revenues | $ | 3,163 | $ | 2,106 | $ | (1,894) | $ | 3,375 |
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||
Logistics and Marketing | Gathering and Processing | Eliminations | Total | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Sales of natural gas | $ | 1,120 | $ | 628 | $ | (508) | $ | 1,240 | ||||||||||||||||||
Sales of NGLs and condensate (a) | 1,205 | 710 | (586) | 1,329 | ||||||||||||||||||||||
Transportation, processing and other | 14 | 104 | — | 118 | ||||||||||||||||||||||
Trading and marketing losses, net (b) | (241) | (128) | — | (369) | ||||||||||||||||||||||
Total operating revenues | $ | 2,098 | $ | 1,314 | $ | (1,094) | $ | 2,318 |
Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
(millions) | |||||||||||||||||
Employee related costs charged by DCP Midstream, LLC | |||||||||||||||||
Operating and maintenance expense | $ | 40 | $ | 39 | |||||||||||||
General and administrative expense | $ | 33 | $ | 26 | |||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
(millions) | |||||||||||||||||
Phillips 66 (including its affiliates): | |||||||||||||||||
Sales of natural gas, NGLs and condensate to affiliates | $ | 1,095 | $ | 527 | |||||||||||||
Purchases and related costs from affiliates | $ | 62 | $ | 30 | |||||||||||||
Transportation and related costs from affiliates | $ | 43 | $ | 37 | |||||||||||||
Operating and maintenance and general administrative expenses | $ | 3 | $ | 2 | |||||||||||||
Enbridge (including its affiliates): | |||||||||||||||||
Sales of natural gas, NGLs and condensate to affiliates | $ | — | $ | 4 | |||||||||||||
Purchases and related costs from affiliates | $ | 13 | $ | 7 | |||||||||||||
Unconsolidated affiliates: | |||||||||||||||||
Sales of natural gas, NGLs and condensate to affiliates | $ | 32 | $ | 24 | |||||||||||||
Transportation, processing, and other to affiliates | $ | 4 | $ | 5 | |||||||||||||
Purchases and related costs from affiliates | $ | 24 | $ | 18 | |||||||||||||
Transportation and related costs from affiliates | $ | 214 | $ | 182 |
March 31, 2022 | December 31, 2021 | ||||||||||
(millions) | |||||||||||
Phillips 66 (including its affiliates): | |||||||||||
Accounts receivable | $ | 585 | $ | 361 | |||||||
Accounts payable | $ | 165 | $ | 114 | |||||||
Other assets | $ | — | $ | 1 | |||||||
Enbridge (including its affiliates): | |||||||||||
Accounts payable | $ | 5 | $ | 4 | |||||||
Unconsolidated affiliates: | |||||||||||
Accounts receivable | $ | 34 | $ | 28 | |||||||
Accounts payable | $ | 93 | $ | 87 | |||||||
March 31, 2022 | December 31, 2021 | ||||||||||
(millions) | |||||||||||
Natural gas | $ | 26 | $ | 43 | |||||||
NGLs | 20 | 34 | |||||||||
Total inventories | $ | 46 | $ | 77 |
Depreciable Life | March 31, 2022 | December 31, 2021 | |||||||||||||||
(millions) | |||||||||||||||||
Gathering and transmission systems | 20 — 50 Years | $ | 7,657 | $ | 7,645 | ||||||||||||
Processing, storage and terminal facilities | 35 — 60 Years | 5,064 | 5,057 | ||||||||||||||
Other | 3 — 30 Years | 557 | 585 | ||||||||||||||
Finance lease assets | 2 — 5 Years | 29 | 28 | ||||||||||||||
Construction work in progress | 101 | 103 | |||||||||||||||
Property, plant and equipment | 13,408 | 13,418 | |||||||||||||||
Accumulated depreciation | (5,776) | (5,717) | |||||||||||||||
Property, plant and equipment, net | $ | 7,632 | $ | 7,701 |
Carrying Value as of | |||||||||||||||||
Percentage Ownership | March 31, 2022 | December 31, 2021 | |||||||||||||||
(millions) | |||||||||||||||||
DCP Sand Hills Pipeline, LLC | 66.67% | $ | 1,692 | $ | 1,703 | ||||||||||||
DCP Southern Hills Pipeline, LLC | 66.67% | 724 | 728 | ||||||||||||||
Gulf Coast Express LLC | 25.00% | 418 | 422 | ||||||||||||||
Front Range Pipeline LLC | 33.33% | 194 | 195 | ||||||||||||||
Texas Express Pipeline LLC | 10.00% | 93 | 94 | ||||||||||||||
Mont Belvieu 1 Fractionator | 20.00% | 7 | 6 | ||||||||||||||
Discovery Producer Services LLC | 40.00% | 229 | 231 | ||||||||||||||
Cheyenne Connector, LLC | 50.00% | 146 | 148 | ||||||||||||||
Mont Belvieu Enterprise Fractionator | 12.50% | 28 | 28 | ||||||||||||||
Other | Various | 23 | 23 | ||||||||||||||
Total investments in unconsolidated affiliates | $ | 3,554 | $ | 3,578 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(millions) | ||||||||||||||
DCP Sand Hills Pipeline, LLC | $ | 71 | $ | 62 | ||||||||||
DCP Southern Hills Pipeline, LLC | 24 | 24 | ||||||||||||
Gulf Coast Express LLC | 16 | 15 | ||||||||||||
Front Range Pipeline LLC | 10 | 9 | ||||||||||||
Texas Express Pipeline LLC | 5 | 4 | ||||||||||||
Mont Belvieu 1 Fractionator | 4 | 2 | ||||||||||||
Discovery Producer Services LLC | 6 | 8 | ||||||||||||
Cheyenne Connector, LLC | 4 | 3 | ||||||||||||
Mont Belvieu Enterprise Fractionator | 2 | 1 | ||||||||||||
Other | 1 | — | ||||||||||||
Total earnings from unconsolidated affiliates | $ | 143 | $ | 128 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(millions) | ||||||||||||||
Statements of operations: | ||||||||||||||
Operating revenue | $ | 563 | $ | 489 | ||||||||||
Operating expenses | $ | 217 | $ | 190 | ||||||||||
Net income | $ | 344 | $ | 298 |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Carrying Value | Level 1 | Level 2 | Level 3 | Total Carrying Value | ||||||||||||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | 47 | $ | 45 | $ | 2 | $ | 94 | $ | 24 | $ | 62 | $ | — | $ | 86 | |||||||||||||||||||||||||||||||
Short-term investments (a) | $ | 4 | $ | — | $ | — | $ | 4 | $ | 4 | $ | 1 | $ | — | $ | 5 | |||||||||||||||||||||||||||||||
Long-term assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | — | $ | 31 | $ | 4 | $ | 35 | $ | — | $ | 8 | $ | 2 | $ | 10 | |||||||||||||||||||||||||||||||
Investments in marketable securities (a) | $ | 35 | $ | — | $ | — | $ | 35 | $ | 28 | $ | — | $ | — | $ | 28 | |||||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | (78) | $ | (200) | $ | (10) | $ | (288) | $ | (42) | $ | (100) | $ | (3) | $ | (145) | |||||||||||||||||||||||||||||||
Long-term liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | — | $ | (73) | $ | (5) | $ | (78) | $ | (1) | $ | (25) | $ | (4) | $ | (30) | |||||||||||||||||||||||||||||||
Commodity Derivative Instruments | |||||||||||||||||||||||
Current Assets | Long-Term Assets | Current Liabilities | Long-Term Liabilities | ||||||||||||||||||||
(millions) | |||||||||||||||||||||||
Three months ended March 31, 2022 (a): | |||||||||||||||||||||||
Beginning balance | $ | — | $ | 2 | $ | (3) | $ | (4) | |||||||||||||||
Net unrealized gains (losses) included in earnings | 2 | 3 | (12) | (6) | |||||||||||||||||||
Transfers out of Level 3 | — | (1) | 1 | 5 | |||||||||||||||||||
Settlements | — | — | 4 | — | |||||||||||||||||||
Ending balance | $ | 2 | $ | 4 | $ | (10) | $ | (5) | |||||||||||||||
Net unrealized gains (losses) on derivatives still held included in earnings | $ | 2 | $ | 2 | $ | (8) | $ | (3) | |||||||||||||||
Three months ended March 31, 2021 (a): | |||||||||||||||||||||||
Beginning balance | $ | — | $ | 2 | $ | (3) | $ | (1) | |||||||||||||||
Net unrealized losses included in earnings | — | — | (5) | — | |||||||||||||||||||
Settlements | — | — | 4 | — | |||||||||||||||||||
Ending balance | $ | — | $ | 2 | $ | (4) | $ | (1) | |||||||||||||||
Net unrealized losses on derivatives still held included in earnings | $ | — | $ | — | $ | (3) | $ | — |
March 31, 2022 | |||||||||||||||||||||||||||||||||||
Product Group | Fair Value | Valuation Techniques | Unobservable Input | Forward Curve Range | Weighted Average (a) | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
NGLs | $ | 2 | Market approach | Longer dated forward curve prices | $0.31-$1.59 | $0.84 | Per gallon | ||||||||||||||||||||||||||||
Natural gas | $ | 4 | Market approach | Longer dated forward curve prices | $3.15-$4.11 | $3.55 | Per MMBtu | ||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
NGLs | $ | (11) | Market approach | Longer dated forward curve prices | $0.42-$2.25 | $1.54 | Per gallon | ||||||||||||||||||||||||||||
Natural gas | $ | (4) | Market approach | Longer dated forward curve prices | $2.58-$4.23 | $3.09 | Per MMBtu |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Carrying Value (a) | Fair Value | Carrying Value (a) | Fair Value | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Total debt | $ | 5,356 | $ | 5,569 | $ | 5,445 | $ | 6,107 |
Debt Maturities | |||||
(millions) | |||||
2022 | $ | — | |||
2023 | 500 | ||||
2024 | 350 | ||||
2025 | 825 | ||||
2026 | — | ||||
Thereafter | 3,672 | ||||
Total debt | $ | 5,347 |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Gross Amounts of Assets and (Liabilities) Presented in the Balance Sheet | Amounts Not Offset in the Balance Sheet - Financial Instruments | Net Amount | Gross Amounts of Assets and (Liabilities) Presented in the Balance Sheet | Amounts Not Offset in the Balance Sheet - Financial Instruments | Net Amount | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | 129 | $ | (1) | $ | 128 | $ | 96 | $ | — | $ | 96 | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | (366) | $ | 1 | $ | (365) | $ | (175) | $ | — | $ | (175) | |||||||||||||||||||||||
Balance Sheet Line Item | March 31, 2022 | December 31, 2021 | Balance Sheet Line Item | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||
(millions) | (millions) | ||||||||||||||||||||||||||||
Derivative Assets Not Designated as Hedging Instruments: | Derivative Liabilities Not Designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Commodity derivatives: | Commodity derivatives: | ||||||||||||||||||||||||||||
Unrealized gains on derivative instruments — current | $ | 94 | $ | 86 | Unrealized losses on derivative instruments — current | $ | (288) | $ | (145) | ||||||||||||||||||||
Unrealized gains on derivative instruments — long-term | 35 | 10 | Unrealized losses on derivative instruments — long-term | (78) | (30) | ||||||||||||||||||||||||
Total | $ | 129 | $ | 96 | Total | $ | (366) | $ | (175) | ||||||||||||||||||||
Commodity Derivatives: Statements of Operations Line Item | Three Months Ended March 31, | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
(millions) | |||||||||||||||||
Realized losses | $ | (59) | $ | (316) | |||||||||||||
Unrealized losses | (176) | (53) | |||||||||||||||
Trading and marketing losses, net | $ | (235) | $ | (369) | |||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Crude Oil | Natural Gas | Natural Gas Liquids | Natural Gas Basis Swaps | ||||||||||||||||||||
Year of Expiration | Net Short Position (Bbls) | Net Short Position (MMBtu) | Net Short Position (Bbls) | Net (Short) Long Position (MMBtu) | |||||||||||||||||||
2022 | (1,047,000) | (56,954,500) | (5,419,927) | (5,217,500) | |||||||||||||||||||
2023 | (1,526,000) | (1,825,000) | (1,393,000) | (830,000) | |||||||||||||||||||
2024 | (360,000) | (2,745,000) | (1,335,000) | (2,280,000) | |||||||||||||||||||
2025 | — | — | (1,440,000) | 4,967,500 | |||||||||||||||||||
2026 | — | — | (1,440,000) | 535,000 | |||||||||||||||||||
2027 | — | — | (360,000) | — | |||||||||||||||||||
March 31, 2021 | |||||||||||||||||||||||
Crude Oil | Natural Gas | Natural Gas Liquids | Natural Gas Basis Swaps | ||||||||||||||||||||
Year of Expiration | Net Short Position (Bbls) | Net (Short) Long Position (MMBtu) | Net Short Position (Bbls) | Net (Short) Long Position (MMBtu) | |||||||||||||||||||
2021 | (1,579,000) | (52,409,500) | (9,599,728) | (11,595,000) | |||||||||||||||||||
2022 | (579,000) | (32,850,000) | (2,350,342) | — | |||||||||||||||||||
2023 | (43,000) | 7,300,000 | (1,320,000) | 4,720,000 | |||||||||||||||||||
2024 | — | — | (1,440,000) | 4,885,000 | |||||||||||||||||||
2025 | — | — | (1,440,000) | 1,825,000 | |||||||||||||||||||
2026 | — | — | (240,000) | — |
Payment Date | Per Unit Distribution | Total Cash Distribution | |||||||||
(millions) | |||||||||||
Distributions to common unitholders | |||||||||||
February 14, 2022 | $ | 0.39 | $ | 81 | |||||||
Distributions to Series B Preferred unitholders | |||||||||||
March 15, 2022 | $ | 0.4922 | $ | 3 | |||||||
Distributions to Series C Preferred unitholders | |||||||||||
January 18, 2022 | $ | 0.4969 | $ | 2 | |||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(millions, except per unit amounts) | ||||||||||||||
Net income attributable to limited partners | $ | 66 | $ | 39 | ||||||||||
Weighted average limited partner units outstanding, basic | 208,378,947 | 208,359,725 | ||||||||||||
Dilutive effects of nonvested restricted phantom units | 422,705 | 101,801 | ||||||||||||
Weighted average limited partner units outstanding, diluted | 208,801,652 | 208,461,526 | ||||||||||||
Net income per limited partner unit, basic and diluted | $ | 0.32 | $ | 0.19 | ||||||||||
Logistics and Marketing | Gathering and Processing | Other | Eliminations | Total | |||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||
Total operating revenue | $ | 3,163 | $ | 2,106 | $ | — | $ | (1,894) | $ | 3,375 | |||||||||||||||||||
Adjusted gross margin (a) | $ | 16 | $ | 284 | $ | — | $ | — | $ | 300 | |||||||||||||||||||
Operating and maintenance expense | (8) | (140) | (4) | — | (152) | ||||||||||||||||||||||||
General and administrative expense | (1) | (4) | (50) | — | (55) | ||||||||||||||||||||||||
Depreciation and amortization expense | (3) | (81) | (6) | — | (90) | ||||||||||||||||||||||||
Gain on sale of assets, net | — | 7 | — | — | 7 | ||||||||||||||||||||||||
Earnings from unconsolidated affiliates | 137 | 6 | — | — | 143 | ||||||||||||||||||||||||
Interest expense | — | — | (71) | — | (71) | ||||||||||||||||||||||||
Income tax expense | — | — | (1) | — | (1) | ||||||||||||||||||||||||
Net income (loss) | $ | 141 | $ | 72 | $ | (132) | $ | — | $ | 81 | |||||||||||||||||||
Net income attributable to noncontrolling interests | — | (1) | — | — | (1) | ||||||||||||||||||||||||
Net income (loss) attributable to partners | $ | 141 | $ | 71 | $ | (132) | $ | — | $ | 80 | |||||||||||||||||||
Non-cash derivative mark-to-market | $ | (45) | $ | (131) | $ | — | $ | — | $ | (176) | |||||||||||||||||||
Capital expenditures | $ | 2 | $ | 20 | $ | 1 | $ | — | $ | 23 | |||||||||||||||||||
Investments in unconsolidated affiliates, net | $ | — | $ | 1 | $ | — | $ | — | $ | 1 |
Logistics and Marketing | Gathering and Processing | Other | Eliminations | Total | |||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||
Total operating revenue | $ | 2,098 | $ | 1,314 | $ | — | $ | (1,094) | $ | 2,318 | |||||||||||||||||||
Adjusted gross margin (a) | $ | 36 | $ | 245 | $ | — | $ | — | $ | 281 | |||||||||||||||||||
Operating and maintenance expense | (6) | (140) | (3) | — | (149) | ||||||||||||||||||||||||
General and administrative expense | (1) | (4) | (33) | — | (38) | ||||||||||||||||||||||||
Depreciation and amortization expense | (3) | (81) | (7) | — | (91) | ||||||||||||||||||||||||
Earnings from unconsolidated affiliates | 120 | 8 | — | — | 128 | ||||||||||||||||||||||||
Interest expense | — | — | (77) | — | (77) | ||||||||||||||||||||||||
Net income (loss) | $ | 146 | $ | 28 | $ | (120) | $ | — | $ | 54 | |||||||||||||||||||
Net income attributable to noncontrolling interests | — | (1) | — | — | (1) | ||||||||||||||||||||||||
Net income (loss) attributable to partners | $ | 146 | $ | 27 | $ | (120) | $ | — | $ | 53 | |||||||||||||||||||
Non-cash derivative mark-to-market | $ | (5) | $ | (48) | $ | — | $ | — | $ | (53) | |||||||||||||||||||
Capital expenditures | $ | — | $ | 13 | $ | 1 | $ | — | $ | 14 | |||||||||||||||||||
March 31, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(millions) | |||||||||||
Segment long-term assets: | |||||||||||
Gathering and Processing | $ | 7,469 | $ | 7,515 | |||||||
Logistics and Marketing | 3,874 | 3,887 | |||||||||
Other (b) | 228 | 229 | |||||||||
Total long-term assets | 11,571 | 11,631 | |||||||||
Current assets | 2,180 | 1,749 | |||||||||
Total assets | $ | 13,751 | $ | 13,380 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(millions) | |||||||||||
Cash paid for interest: | |||||||||||
Cash paid for interest, net of amounts capitalized | $ | 84 | $ | 89 | |||||||
Cash paid for income taxes, net of income tax refunds | $ | (1) | $ | — | |||||||
Non-cash investing and financing activities: | |||||||||||
Property, plant and equipment acquired with accounts payable and accrued liabilities | $ | 7 | $ | 4 | |||||||
Other non-cash changes in property, plant and equipment | $ | — | $ | (2) | |||||||
Other non-cash activities: | |||||||||||
Right-of-use assets obtained in exchange for operating and finance lease liabilities | $ | 7 | $ | — |
Three Months Ended March 31, | Variance 2022 vs. 2021 | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Increase (Decrease) | Percent | |||||||||||||||||||||||||||||||||||
(millions, except operating data) | ||||||||||||||||||||||||||||||||||||||
Operating revenues (a): | ||||||||||||||||||||||||||||||||||||||
Logistics and Marketing | $ | 3,163 | $ | 2,098 | $ | 1,065 | 51 | % | ||||||||||||||||||||||||||||||
Gathering and Processing | 2,106 | 1,314 | 792 | 60 | % | |||||||||||||||||||||||||||||||||
Inter-segment eliminations | (1,894) | (1,094) | 800 | 73 | % | |||||||||||||||||||||||||||||||||
Total operating revenues | 3,375 | 2,318 | 1,057 | 46 | % | |||||||||||||||||||||||||||||||||
Purchases and related costs | ||||||||||||||||||||||||||||||||||||||
Logistics and Marketing | (3,147) | (2,062) | 1,085 | 53 | % | |||||||||||||||||||||||||||||||||
Gathering and Processing | (1,822) | (1,069) | 753 | 70 | % | |||||||||||||||||||||||||||||||||
Inter-segment eliminations | 1,894 | 1,094 | 800 | 73 | % | |||||||||||||||||||||||||||||||||
Total purchases | (3,075) | (2,037) | 1,038 | 51 | % | |||||||||||||||||||||||||||||||||
Operating and maintenance expense | (152) | (149) | 3 | 2 | % | |||||||||||||||||||||||||||||||||
Depreciation and amortization expense | (90) | (91) | (1) | (1 | %) | |||||||||||||||||||||||||||||||||
General and administrative expense | (55) | (38) | 17 | 45 | % | |||||||||||||||||||||||||||||||||
Gain on sale of assets, net | 7 | — | 7 | * | ||||||||||||||||||||||||||||||||||
Earnings from unconsolidated affiliates (b) | 143 | 128 | 15 | 12 | % | |||||||||||||||||||||||||||||||||
Interest expense | (71) | (77) | (6) | (8 | %) | |||||||||||||||||||||||||||||||||
Income tax expense | (1) | — | 1 | * | ||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (1) | (1) | — | — | % | |||||||||||||||||||||||||||||||||
Net income attributable to partners | $ | 80 | $ | 53 | $ | 27 | 51 | % | ||||||||||||||||||||||||||||||
Other data: | ||||||||||||||||||||||||||||||||||||||
Adjusted gross margin (c): | ||||||||||||||||||||||||||||||||||||||
Logistics and Marketing | $ | 16 | $ | 36 | $ | (20) | (56 | %) | ||||||||||||||||||||||||||||||
Gathering and Processing | 284 | 245 | 39 | 16 | % | |||||||||||||||||||||||||||||||||
Total adjusted gross margin | $ | 300 | $ | 281 | $ | 19 | 7 | % | ||||||||||||||||||||||||||||||
Non-cash commodity derivative mark-to-market | $ | (176) | $ | (53) | $ | (123) | * | |||||||||||||||||||||||||||||||
NGL pipelines throughput (MBbls/d) (d) | 682 | 578 | 104 | 18 | % | |||||||||||||||||||||||||||||||||
Gas pipelines throughput (TBtu/d) (d) | 1.0 | 1.0 | — | — | % | |||||||||||||||||||||||||||||||||
Natural gas wellhead (MMcf/d) (d) | 4,110 | 4,077 | 33 | 1 | % | |||||||||||||||||||||||||||||||||
NGL gross production (MBbls/d) (d) | 402 | 361 | 41 | 11 | % | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(millions) | ||||||||||||||
DCP Sand Hills Pipeline, LLC | $ | 71 | $ | 62 | ||||||||||
DCP Southern Hills Pipeline, LLC | 24 | 24 | ||||||||||||
Gulf Coast Express LLC | 16 | 15 | ||||||||||||
Front Range Pipeline LLC | 10 | 9 | ||||||||||||
Texas Express Pipeline LLC | 5 | 4 | ||||||||||||
Mont Belvieu 1 Fractionator | 4 | 2 | ||||||||||||
Discovery Producer Services LLC | 6 | 8 | ||||||||||||
Cheyenne Connector, LLC | 4 | 3 | ||||||||||||
Mont Belvieu Enterprise Fractionator | 2 | 1 | ||||||||||||
Other | 1 | — | ||||||||||||
Total earnings from unconsolidated affiliates | $ | 143 | $ | 128 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(millions) | ||||||||||||||
DCP Sand Hills Pipeline, LLC | $ | 83 | $ | 52 | ||||||||||
DCP Southern Hills Pipeline, LLC | 28 | 25 | ||||||||||||
Gulf Coast Express LLC | 20 | 19 | ||||||||||||
Front Range Pipeline LLC | 12 | 12 | ||||||||||||
Texas Express Pipeline LLC | 6 | 5 | ||||||||||||
Mont Belvieu 1 Fractionator | 4 | 2 | ||||||||||||
Discovery Producer Services LLC | 8 | 8 | ||||||||||||
Cheyenne Connector, LLC | 5 | 4 | ||||||||||||
Mont Belvieu Enterprise Fractionator | 1 | 1 | ||||||||||||
Other | 1 | 1 | ||||||||||||
Total distributions from unconsolidated affiliates | $ | 168 | $ | 129 |
Operating Data | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
System | Approximate System Length (Miles) | Fractionators | Approximate Throughput Capacity (MBbls/d) (a) | Approximate Gas Throughput Capacity (TBtus/d) (a) | Pipeline Throughput (MBbls/d) (a) | Pipeline Throughput (TBtus/d) (a) | Fractionator Throughput (MBbls/d) (a) | |||||||||||||||||||||||||||||||||||||
Sand Hills pipeline | 1,400 | — | 333 | — | 288 | — | — | |||||||||||||||||||||||||||||||||||||
Southern Hills pipeline | 970 | — | 128 | — | 118 | — | — | |||||||||||||||||||||||||||||||||||||
Front Range pipeline | 450 | — | 87 | — | 73 | — | — | |||||||||||||||||||||||||||||||||||||
Texas Express pipeline | 600 | — | 37 | — | 21 | — | — | |||||||||||||||||||||||||||||||||||||
Other NGL pipelines (a) | 1,090 | — | 310 | — | 182 | — | — | |||||||||||||||||||||||||||||||||||||
Gulf Coast Express pipeline | 500 | — | — | — | — | 0.49 | — | |||||||||||||||||||||||||||||||||||||
Guadalupe pipeline | 600 | — | — | 0.25 | — | 0.25 | — | |||||||||||||||||||||||||||||||||||||
Cheyenne Connector | 70 | — | — | 0.30 | — | 0.30 | — | |||||||||||||||||||||||||||||||||||||
Mont Belvieu fractionators | — | 2 | — | — | — | — | 53 | |||||||||||||||||||||||||||||||||||||
Pipelines total | 5,680 | 2 | 895 | 0.55 | 682 | 1.04 | 53 |
Three Months Ended March 31, | Variance 2022 vs. 2021 | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Increase (Decrease) | Percent | ||||||||||||||||||||||||||||||||
(millions, except operating data) | |||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||
Sales of natural gas, NGLs and condensate | $ | 3,185 | $ | 2,325 | $ | 860 | 37 | % | |||||||||||||||||||||||||||
Transportation, processing and other | 19 | 14 | 5 | 36 | % | ||||||||||||||||||||||||||||||
Trading and marketing losses, net | (41) | (241) | 200 | 83 | % | ||||||||||||||||||||||||||||||
Total operating revenues | 3,163 | 2,098 | 1,065 | 51 | % | ||||||||||||||||||||||||||||||
Purchases and related costs | (3,147) | (2,062) | 1,085 | 53 | % | ||||||||||||||||||||||||||||||
Operating and maintenance expense | (8) | (6) | 2 | 33 | % | ||||||||||||||||||||||||||||||
Depreciation and amortization expense | (3) | (3) | — | — | % | ||||||||||||||||||||||||||||||
General and administrative expense | (1) | (1) | — | — | % | ||||||||||||||||||||||||||||||
Earnings from unconsolidated affiliates (a) | 137 | 120 | 17 | 14 | % | ||||||||||||||||||||||||||||||
Segment net income attributable to partners | $ | 141 | $ | 146 | $ | (5) | (3 | %) | |||||||||||||||||||||||||||
Other data: | |||||||||||||||||||||||||||||||||||
Segment adjusted gross margin (b) | $ | 16 | $ | 36 | $ | (20) | (56 | %) | |||||||||||||||||||||||||||
Non-cash commodity derivative mark-to-market | $ | (45) | $ | (5) | $ | (40) | * | ||||||||||||||||||||||||||||
NGL pipelines throughput (MBbls/d) (c) | 682 | 578 | 104 | 18 | % | ||||||||||||||||||||||||||||||
Gas pipelines throughput (TBtu/d) (c) | 1.0 | 1.0 | — | — | % |
Operating Data | ||||||||||||||||||||||||||||||||
Three months ended March 31, 2022 | ||||||||||||||||||||||||||||||||
Regions | Plants | Approximate Gathering and Transmission Systems (Miles) | Approximate Net Nameplate Plant Capacity (MMcf/d) (a) | Natural Gas Wellhead Volume (MMcf/d) (a) | NGL Production (MBbls/d) (a) | |||||||||||||||||||||||||||
North | 13 | 3,500 | 1,580 | 1,567 | 150 | |||||||||||||||||||||||||||
Midcontinent | 6 | 23,500 | 1,110 | 797 | 70 | |||||||||||||||||||||||||||
Permian | 9 | 15,500 | 1,100 | 966 | 115 | |||||||||||||||||||||||||||
South | 7 | 7,000 | 1,630 | 780 | 67 | |||||||||||||||||||||||||||
Total | 35 | 49,500 | 5,420 | 4,110 | 402 |
Three Months Ended March 31, | Variance 2022 vs. 2021 | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Increase (Decrease) | Percent | |||||||||||||||||||||||||||||||||||
(millions, except operating data) | ||||||||||||||||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||||||||
Sales of natural gas, NGLs and condensate | $ | 2,164 | $ | 1,338 | $ | 826 | 62 | % | ||||||||||||||||||||||||||||||
Transportation, processing and other | 136 | 104 | 32 | 31 | % | |||||||||||||||||||||||||||||||||
Trading and marketing losses, net | (194) | (128) | (66) | (52 | %) | |||||||||||||||||||||||||||||||||
Total operating revenues | 2,106 | 1,314 | 792 | 60 | % | |||||||||||||||||||||||||||||||||
Purchases and related costs | (1,822) | (1,069) | 753 | 70 | % | |||||||||||||||||||||||||||||||||
Operating and maintenance expense | (140) | (140) | — | — | % | |||||||||||||||||||||||||||||||||
Depreciation and amortization expense | (81) | (81) | — | — | % | |||||||||||||||||||||||||||||||||
General and administrative expense | (4) | (4) | — | — | % | |||||||||||||||||||||||||||||||||
Gain on sale of assets, net | 7 | — | 7 | * | ||||||||||||||||||||||||||||||||||
Earnings from unconsolidated affiliates (a) | 6 | 8 | (2) | (25 | %) | |||||||||||||||||||||||||||||||||
Segment net income | 72 | 28 | 44 | * | ||||||||||||||||||||||||||||||||||
Segment net income attributable to noncontrolling interests | (1) | (1) | — | — | % | |||||||||||||||||||||||||||||||||
Segment net income attributable to partners | $ | 71 | $ | 27 | $ | 44 | * | |||||||||||||||||||||||||||||||
Other data: | ||||||||||||||||||||||||||||||||||||||
Segment adjusted gross margin (b) | $ | 284 | $ | 245 | $ | 39 | 16 | % | ||||||||||||||||||||||||||||||
Non-cash commodity derivative mark-to-market | $ | (131) | $ | (48) | $ | (83) | * | |||||||||||||||||||||||||||||||
Natural gas wellhead (MMcf/d) (c) | 4,110 | 4,077 | 33 | 1 | % | |||||||||||||||||||||||||||||||||
NGL gross production (MBbls/d) (c) | 402 | 361 | 41 | 11 | % |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(millions) | |||||||||||
Net cash provided by (used in) operating activities | $ | 189 | $ | (4) | |||||||
Net cash used in investing activities | $ | (8) | $ | (14) | |||||||
Net cash used in financing activities | $ | (181) | $ | (30) |
Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Reconciliation of Non-GAAP Measures | (millions) | ||||||||||||||||
Reconciliation of gross margin to adjusted gross margin: | |||||||||||||||||
Operating revenues | $ | 3,375 | $ | 2,318 | |||||||||||||
Cost of revenues | |||||||||||||||||
Purchases and related costs | 2,719 | 1,763 | |||||||||||||||
Purchases and related costs from affiliates | 99 | 55 | |||||||||||||||
Transportation and related costs from affiliates | 257 | 219 | |||||||||||||||
Depreciation and amortization expense | 90 | 91 | |||||||||||||||
Gross margin | 210 | 190 | |||||||||||||||
Depreciation and amortization expense | 90 | 91 | |||||||||||||||
Adjusted gross margin | $ | 300 | $ | 281 | |||||||||||||
Reconciliation of segment gross margin to segment adjusted gross margin: | |||||||||||||||||
Logistics and Marketing segment: | |||||||||||||||||
Operating revenues | $ | 3,163 | $ | 2,098 | |||||||||||||
Cost of revenues | |||||||||||||||||
Purchases and related costs | 3,147 | 2,062 | |||||||||||||||
Depreciation and amortization expense | 3 | 3 | |||||||||||||||
Segment gross margin | 13 | 33 | |||||||||||||||
Depreciation and amortization expense | 3 | 3 | |||||||||||||||
Segment adjusted gross margin | $ | 16 | $ | 36 | |||||||||||||
Gathering and Processing segment: | |||||||||||||||||
Operating revenues | $ | 2,106 | $ | 1,314 | |||||||||||||
Cost of revenues | |||||||||||||||||
Purchases and related costs | 1,822 | 1,069 | |||||||||||||||
Depreciation and amortization expense | 81 | 81 | |||||||||||||||
Segment gross margin | 203 | 164 | |||||||||||||||
Depreciation and amortization expense | 81 | 81 | |||||||||||||||
Segment adjusted gross margin | $ | 284 | $ | 245 | |||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
(millions) | |||||||||||||||||
Reconciliation of net income attributable to partners to adjusted segment EBITDA: | |||||||||||||||||
Logistics and Marketing segment: | |||||||||||||||||
Segment net income attributable to partners (a) | $ | 141 | $ | 146 | |||||||||||||
Non-cash commodity derivative mark-to-market | 45 | 5 | |||||||||||||||
Depreciation and amortization expense, net of noncontrolling interest | 3 | 3 | |||||||||||||||
Distributions from unconsolidated affiliates, net of earnings | 23 | 1 | |||||||||||||||
Adjusted segment EBITDA | $ | 212 | $ | 155 | |||||||||||||
Gathering and Processing segment: | |||||||||||||||||
Segment net income attributable to partners | $ | 71 | $ | 27 | |||||||||||||
Non-cash commodity derivative mark-to-market | 131 | 48 | |||||||||||||||
Depreciation and amortization expense, net of noncontrolling interest | 81 | 81 | |||||||||||||||
Distributions from unconsolidated affiliates, net of earnings | 2 | — | |||||||||||||||
Other income | (7) | — | |||||||||||||||
Adjusted segment EBITDA | $ | 278 | $ | 156 |
Period | Commodity | Notional Volume - Short Positions | Reference Price | Price Range | ||||||||||||||||||||||
April 2022 — December 2022 | Natural Gas | (132,778) MMBtu/d (e) | NYMEX Final Settlement Price (a) | $2.40-$6.96/MMBtu | ||||||||||||||||||||||
January 2023 — December 2023 | Natural Gas | (45,000) MMBtu/d (e) | NYMEX Final Settlement Price (a) | $2.80-$5.10/MMBtu | ||||||||||||||||||||||
January 2024 — December 2024 | Natural Gas | (20,000) MMBtu/d (e) | NYMEX Final Settlement Price (a) | $3.78-$4.03/MMBtu | ||||||||||||||||||||||
January 2025 — December 2025 | Natural Gas | (5,000) MMBtu/d (e) | NYMEX Final Settlement Price (a) | $3.82-$3.83/MMBtu | ||||||||||||||||||||||
April 2022 — December 2022 | NGLs | (14,228) Bbls/d (d) | Mt.Belvieu (b) | $.54-$1.81/Gal | ||||||||||||||||||||||
January 2023 — December 2023 | NGLs | (494) Bbls/d (d) | Mt.Belvieu (b) | $1.11/Gal | ||||||||||||||||||||||
April 2022 — February 2023 | Crude Oil | (4,492) Bbls/d (d) | NYMEX crude oil futures (c) | $46.86-$82.15/Bbl | ||||||||||||||||||||||
March 2023 — December 2023 | Crude Oil | (3,923) Bbls/d (d) | NYMEX crude oil futures (c) | $60.37-$82.15/Bbl | ||||||||||||||||||||||
January 2024 — December 2024 | Crude Oil | (1,476) Bbls/d (d) | NYMEX crude oil futures (c) | $75.80-$80.60/Bbl |
Per Unit Decrease | Unit of Measurement | Estimated Decrease in Annual Net Income Attributable to Partners | |||||||||||||||
(millions) | |||||||||||||||||
NGL prices | $ | 0.01 | Gallon | $ | 5 | ||||||||||||
Natural gas prices | $ | 0.10 | MMBtu | $ | 2 | ||||||||||||
Crude oil prices | $ | 1.00 | Barrel | $ | 3 |
Per Unit Increase | Unit of Measurement | Estimated Mark-to- Market Impact (Decrease in Net Income Attributable to Partners) | |||||||||||||||
(millions) | |||||||||||||||||
NGL prices | $ | 0.01 | Gallon | $ | 1 | ||||||||||||
Natural gas prices | $ | 0.10 | MMBtu | $ | 5 | ||||||||||||
Crude oil prices | $ | 1.00 | Barrel | $ | 1 |
Period ended | Commodity | Notional Volume - Long Positions | Fair Value (millions) | Weighted Average Price | ||||||||||||||||||||||||||||
March 31, 2022 | Natural Gas | 6,660,974 | MMBtu | $ | 26 | $3.93/MMBtu |
Period | Commodity | Notional Volume - (Short)/Long Positions | Fair Value (millions) | Price Range | ||||||||||||||||||||||||||||
April 2022 — June 2022 | Natural Gas | (15,060,000) | MMBtu | $ | (9) | $3.95-$5.58/MMBtu | ||||||||||||||||||||||||||
April 2022 | Natural Gas | 8,100,000 | MMBtu | $ | 2 | $3.98-$5.50/MMBtu |
Period | Commodity | Notional Volume - (Short)/Long Positions | Fair Value (millions) | Price Range (a) | |||||||||||||||||||||||||
April 2022 — December 2025 | Natural Gas | (72,087,500) | MMBtu | $6 | $0.05-$0.21/MMBtu | ||||||||||||||||||||||||
April 2022 — October 2026 | Natural Gas | 68,750,000 | MMBtu | $(40) | $0.19-$0.83/MMBtu |
Exhibit Number | Description | |||||||||||||
* | ||||||||||||||
* | ||||||||||||||
* | ||||||||||||||
* | ||||||||||||||
* | ||||||||||||||
101 | Financial statements from the Quarterly Report on Form 10-Q of DCP Midstream, LP for the three months ended March 31, 2022, formatted in XBRL: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Changes in Equity, and (vi) the Notes to the Condensed Consolidated Financial Statements. | |||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
DCP Midstream, LP | ||||||||||||||
By: | DCP Midstream GP, LP its General Partner | |||||||||||||
By: | DCP Midstream GP, LLC its General Partner | |||||||||||||
Date: May 5, 2022 | By: | /s/ Wouter T. van Kempen | ||||||||||||
Name: | Wouter T. van Kempen | |||||||||||||
Title: | President and Chief Executive Officer | |||||||||||||
(Principal Executive Officer) | ||||||||||||||
Date: May 5, 2022 | By: | /s/ Sean P. O'Brien | ||||||||||||
Name: | Sean P. O'Brien | |||||||||||||
Title: | Group Vice President and Chief Financial Officer | |||||||||||||
(Principal Financial Officer) |
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