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As Of Filer Filing For·On·As Docs:Size 10/31/19 Crestwood Equity Partners LP 10-Q 9/30/19 91:22M Crestwood Midstream Partners LP |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 2.99M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 32K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 32K 4: EX-31.3 Certification -- §302 - SOA'02 HTML 32K 5: EX-31.4 Certification -- §302 - SOA'02 HTML 32K 6: EX-32.1 Certification -- §906 - SOA'02 HTML 28K 7: EX-32.2 Certification -- §906 - SOA'02 HTML 28K 8: EX-32.3 Certification -- §906 - SOA'02 HTML 27K 9: EX-32.4 Certification -- §906 - SOA'02 HTML 27K 34: R1 Cover Page HTML 88K 62: R2 Consolidated Balance Sheets HTML 146K 88: R3 Consolidated Balance Sheets (Parenthetical) HTML 39K 44: R4 Consolidated Statements of Operations HTML 186K 33: R5 Consolidated Statements of Comprehensive Income HTML 45K 61: R6 Consolidated Statement of Partners' Capital HTML 116K 87: R7 Consolidated Statements of Cash Flows HTML 134K 45: R8 Organization and Business Description HTML 32K 32: R9 Summary of Significant Accounting Policies HTML 130K 76: R10 Acquisition and Divestiture (Notes) HTML 69K 66: R11 Certain Balance Sheet Information HTML 59K 19: R12 Investments in Unconsolidated Affiliates HTML 129K 51: R13 Risk Management HTML 67K 75: R14 Fair Value Measurements HTML 144K 65: R15 Long-Term Debt HTML 50K 18: R16 Earnings Per Limited Partner Unit HTML 92K 50: R17 Partners' Capital HTML 80K 74: R18 Commitments and Contingencies HTML 51K 67: R19 Related Party Transactions HTML 74K 30: R20 Segments HTML 381K 43: R21 Revenue Recognition Revenue Recognition HTML 423K 91: R22 Condensed Consolidating Financial Information HTML 649K 64: R23 Basis of Presentation and Summary of Significant HTML 32K Accounting Policies (Policies) 29: R24 Basis of Presentation and Summary of Significant HTML 167K Accounting Policies Summary of Significant Accounting Policies (Tables) 42: R25 Acquisition and Divestiture (Tables) HTML 64K 90: R26 Certain Balance Sheet Information (Tables) HTML 58K 63: R27 Investments in Unconsolidated Affiliates (Tables) HTML 122K 31: R28 Risk Management (Tables) HTML 65K 41: R29 Fair Value Measurements (Tables) HTML 137K 46: R30 Long-Term Debt (Tables) HTML 46K 16: R31 Earnings Per Limited Partner Unit (Tables) HTML 91K 68: R32 Partners' Capital (Tables) HTML 63K 77: R33 Commitments and Contingencies (Tables) HTML 37K 47: R34 Related Party Transactions (Tables) HTML 73K 17: R35 Segments (Tables) HTML 762K 69: R36 Revenue Recognition (Tables) HTML 422K 78: R37 Condensed Consolidating Financial Information HTML 651K (Tables) 49: R38 Basis of Presentation and Summary of Significant HTML 262K Accounting Policies (Details) 15: R39 Acquisition and Divestiture (Details) HTML 121K 37: R40 Certain Balance Sheet Information (Accrued HTML 64K Expenses and Other Liabilities) (Details) 27: R41 Investments in Unconsolidated Affiliates Net HTML 77K Investments In and Earnings (Loss) from Unconsolidated Affiliates (Details) 56: R42 Investments in Unconsolidated Affiliates HTML 59K Summarized Financial Information (Details) 82: R43 Investments in Unconsolidated Affiliates HTML 54K Distributions and Contributions (Details) 38: R44 Investments in Unconsolidated Affiliates Narrative HTML 58K (Details) 28: R45 Risk Management (Risk Management Activities) HTML 32K (Details) 57: R46 Risk Management (Notional Amounts and Terms of HTML 36K Company's Derivative Financial Instruments) (Details) 83: R47 Risk Management Schedule of Derivative Instruments HTML 44K in Statement of Financial Position, Fair Value (Details) 40: R48 Risk Management (Narrative) (Details) HTML 31K 26: R49 Fair Value Measurements (Schedule of Carrying HTML 38K Values and Estimated Fair Values of Senior Notes) (Details) 21: R50 Fair Value Measurements (Assets And Liabilities HTML 71K Measured At Fair Value On Recurring Basis) (Details) 55: R51 Long-Term Debt (Components Of Long-Term Debt) HTML 58K (Details) 80: R52 Long-Term Debt (Narrative) (Detail) HTML 76K 72: R53 Earnings Per Limited Partner Unit (Details) HTML 66K 20: R54 Partners' Capital (Schedule of Partners' Capital HTML 44K Account, Distributions) (Details) 54: R55 Partners' Capital (Components of Net Income (Loss) HTML 37K Attributable to Non-Controlling Interests) (Details) 79: R56 Partners' Capital (Narrative) (Details) HTML 131K 71: R57 Partners' Capital Rollforward of non-controlling HTML 55K interest (Details) 22: R58 Commitments and Contingencies (Details) HTML 34K 53: R59 Commitments and Contingencies Environmental HTML 47K Compliance (Details) 86: R60 Commitments and Contingencies Self Insurance HTML 34K (Details) 59: R61 Related Party Transactions (Details) HTML 92K 25: R62 Segments (Reconciliation of Net Income (Loss) to HTML 49K EBITDA) (Details) 36: R63 Segments (Summary Of Segment Information) HTML 133K (Details) 85: R64 Segments (Narrative) (Details) HTML 28K 58: R65 Revenue Recognition Narrative (Details) HTML 27K 24: R66 Revenue Recognition Contract Assets and HTML 39K Liabilities (Details) 35: R67 Revenue Recognition Disaggregation of Revenue HTML 202K (Details) 84: R68 Revenue Recognition Remaining Performance HTML 48K Obligations (Details) 60: R69 Condensed Consolidating Financial Information HTML 162K (Balance Sheet) (Details) 73: R70 Condensed Consolidating Financial Information HTML 126K (Statements Of Operations) (Details) 81: R71 Condensed Consolidating Financial Information HTML 153K (Statements Of Cash Flows) (Details) 70: R9999 Uncategorized Items - crestwood-q32019.htm HTML 31K 23: XML IDEA XML File -- Filing Summary XML 164K 48: XML XBRL Instance -- crestwood-q32019_htm XML 7.94M 52: EXCEL IDEA Workbook of Financial Reports XLSX 124K 11: EX-101.CAL XBRL Calculations -- ceqp-20190930_cal XML 351K 12: EX-101.DEF XBRL Definitions -- ceqp-20190930_def XML 1.34M 13: EX-101.LAB XBRL Labels -- ceqp-20190930_lab XML 1.94M 14: EX-101.PRE XBRL Presentations -- ceqp-20190930_pre XML 1.45M 10: EX-101.SCH XBRL Schema -- ceqp-20190930 XSD 209K 89: JSON XBRL Instance as JSON Data -- MetaLinks 414± 631K 39: ZIP XBRL Zipped Folder -- 0001136352-19-000015-xbrl Zip 459K
Document |
i ☒ | QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i ☐ | TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to . |
(Exact name of registrant as specified in its charter) | Commission file number | State or other jurisdiction of incorporation or organization | (I.R.S.
Employer Identification No.) |
i Crestwood Equity Partners LP | i Delaware | i 43-1918951 | |
i Crestwood
Midstream Partners LP | i Delaware | i 20-1647837 |
i 811
Main Street | i Suite 3400 | i Houston | i Texas | i 77002 |
(Address
of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol | Name of each exchange on which registered |
i Common
Units representing limited partnership interests | i CEQP | i New York Stock Exchange |
Crestwood Equity Partners LP | i Yes | ☒ | No | ☐ | ||
Crestwood
Midstream Partners LP | i Yes | ☒ | No | ☐ |
Crestwood
Equity Partners LP | i Yes | ☒ | No | ☐ | ||
Crestwood Midstream Partners LP | i Yes | ☒ | No | ☐ |
Crestwood Equity Partners LP | i Large
accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | Emerging growth
company | i ☐ |
Crestwood Midstream Partners LP | Large accelerated filer | ☐ | Accelerated filer | ☐ | i Non-accelerated
filer | ☒ | Smaller reporting company | i ☐ | Emerging growth company | i ☐ |
Crestwood Equity Partners LP | ☐ | |
Crestwood Midstream Partners LP | ☐ |
Crestwood Equity Partners LP | Yes | i ☐ | No | ☒ | ||
Crestwood
Midstream Partners LP | Yes | i ☐ | No | ☒ |
Crestwood Equity Partners LP | i 71,849,157 | |
Crestwood
Midstream Partners LP | i None |
Page | |
CRESTWOOD EQUITY PARTNERS LP CONSOLIDATED BALANCE SHEETS (in
millions, except unit information) | |||||||
(unaudited) | |||||||
Assets | |||||||
Current
assets: | |||||||
Cash | $ | i 1.6 | $ | i 0.9 | |||
Restricted
cash | i — | i 16.3 | |||||
Accounts
receivable, less allowance for doubtful accounts of $0.3 million at both September 30, 2019 and December 31, 2018 | i 258.5 | i 251.5 | |||||
Inventory
| i 43.5 | i 64.6 | |||||
Assets
from price risk management activities | i 57.4 | i 34.7 | |||||
Prepaid
expenses and other current assets | i 8.4 | i 11.3 | |||||
Total
current assets | i 369.4 | i 379.3 | |||||
Property,
plant and equipment | i 3,505.1 | i 2,598.1 | |||||
Less:
accumulated depreciation | i 666.1 | i 568.4 | |||||
Property,
plant and equipment, net | i 2,839.0 | i 2,029.7 | |||||
Intangible
assets | i 1,076.3 | i 770.3 | |||||
Less:
accumulated amortization | i 256.4 | i 216.5 | |||||
Intangible
assets, net | i 819.9 | i 553.8 | |||||
Goodwill | i 218.9 | i 138.6 | |||||
Operating
lease right-of-use assets, net | i 58.6 | — | |||||
Investments in unconsolidated affiliates | i 979.6 | i 1,188.2 | |||||
Other
non-current assets | i 5.3 | i 4.9 | |||||
Total
assets | $ | i 5,290.7 | $ | i 4,294.5 | |||
Liabilities
and capital | |||||||
Current liabilities: | |||||||
Accounts payable | $ | i 198.3 | $ | i 213.0 | |||
Accrued
expenses and other liabilities | i 169.0 | i 112.4 | |||||
Liabilities
from price risk management activities | i 4.8 | i 5.8 | |||||
Current
portion of long-term debt | i 0.2 | i 0.9 | |||||
Total
current liabilities | i 372.3 | i 332.1 | |||||
Long-term
debt, less current portion | i 2,267.2 | i 1,752.4 | |||||
Long-term
operating lease liabilities | i 45.6 | — | |||||
Other long-term liabilities | i 225.3 | i 173.6 | |||||
Deferred
income taxes | i 2.6 | i 2.6 | |||||
Total
liabilities | i 2,913.0 | i 2,260.7 | |||||
Commitments
and contingencies (Note 11) | i | i | |||||
Interest
of non-controlling partner in subsidiary (Note 10) | i 425.1 | — | |||||
Crestwood
Equity Partners LP partners’ capital (72,289,083 and 71,659,385 common and subordinated units issued and outstanding at September 30, 2019 and December 31, 2018) | i 1,340.6 | i 1,240.5 | |||||
Preferred
units (71,257,445 units issued and outstanding at both September 30, 2019 and December 31, 2018) | i 612.0 | i 612.0 | |||||
Total
Crestwood Equity Partners LP partners’ capital | i 1,952.6 | i 1,852.5 | |||||
Interest
of non-controlling partner in subsidiary (Note 10) | i — | i 181.3 | |||||
Total
partners’ capital | i 1,952.6 | i 2,033.8 | |||||
Total
liabilities and capital | $ | i 5,290.7 | $ | i 4,294.5 |
CRESTWOOD EQUITY PARTNERS LP CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per unit data) (unaudited) | |||||||||||||||
Three
Months Ended | Nine Months Ended | ||||||||||||||
September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
Product
revenues: | |||||||||||||||
Gathering and processing | $ | i 155.0 | $ | i 173.5 | $ | i 370.8 | $ | i 632.6 | |||||||
Marketing,
supply and logistics | i 555.4 | i 671.5 | i 1,664.3 | i 1,987.6 | |||||||||||
Related
party (Note 12) | i 0.3 | i — | i 2.8 | i — | |||||||||||
i 710.7 | i 845.0 | i 2,037.9 | i 2,620.2 | ||||||||||||
Services
revenues: | |||||||||||||||
Gathering and processing | i 102.8 | i 68.8 | i 269.0 | i 205.4 | |||||||||||
Storage
and transportation | i 4.1 | i 3.5 | i 16.8 | i 12.8 | |||||||||||
Marketing,
supply and logistics | i 6.0 | i 12.6 | i 18.5 | i 46.4 | |||||||||||
Related
party (Note 12) | i — | i 0.3 | i — | i 0.9 | |||||||||||
i 112.9 | i 85.2 | i 304.3 | i 265.5 | ||||||||||||
Total
revenues | i 823.6 | i 930.2 | i 2,342.2 | i 2,885.7 | |||||||||||
Costs
of product/services sold (exclusive of items shown separately below): | |||||||||||||||
Product costs | i 646.8 | i 770.8 | i 1,829.8 | i 2,391.5 | |||||||||||
Product
costs - related party (Note 12) | i 3.8 | i 45.7 | i 39.1 | i 91.0 | |||||||||||
Service
costs | i 6.8 | i 11.0 | i 21.3 | i 36.2 | |||||||||||
Total
costs of products/services sold | i 657.4 | i 827.5 | i 1,890.2 | i 2,518.7 | |||||||||||
Operating
expenses and other: | |||||||||||||||
Operations and maintenance | i 36.0 | i 29.6 | i 99.3 | i 96.0 | |||||||||||
General
and administrative | i 24.9 | i 25.5 | i 84.4 | i 72.8 | |||||||||||
Depreciation,
amortization and accretion | i 51.5 | i 39.2 | i 140.6 | i 128.8 | |||||||||||
Loss
on long-lived assets, net | i 0.1 | i 3.6 | i 2.1 | i 27.7 | |||||||||||
Gain
on acquisition | i — | i — | ( i 209.4 | ) | i — | ||||||||||
i 112.5 | i 97.9 | i 117.0 | i 325.3 | ||||||||||||
Operating
income | i 53.7 | i 4.8 | i 335.0 | i 41.7 |
CRESTWOOD EQUITY PARTNERS LP CONSOLIDATED STATEMENTS OF OPERATIONS (continued) (in millions, except per unit data) (unaudited) | |||||||||||||||
Three Months
Ended | Nine Months Ended | ||||||||||||||
September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Earnings
from unconsolidated affiliates, net | i 10.4 | i 15.1 | i 21.0 | i 39.5 | |||||||||||
Interest
and debt expense, net | ( i 30.6 | ) | ( i 25.1 | ) | ( i 83.3 | ) | ( i 73.8 | ) | |||||||
Other
income, net | i 0.1 | i — | i 0.3 | i 0.2 | |||||||||||
Income
(loss) before income taxes | i 33.6 | ( i 5.2 | ) | i 273.0 | i 7.6 | ||||||||||
Provision
for income taxes | i — | i — | ( i 0.3 | ) | ( i 0.2 | ) | |||||||||
Net
income (loss) | i 33.6 | ( i 5.2 | ) | i 272.7 | i 7.4 | ||||||||||
Net
income attributable to non-controlling partner | i 9.9 | i 4.1 | i 24.5 | i 12.1 | |||||||||||
Net
income (loss) attributable to Crestwood Equity Partners LP | i 23.7 | ( i 9.3 | ) | i 248.2 | ( i 4.7 | ) | |||||||||
Net
income attributable to preferred units | i 15.0 | i 15.0 | i 45.0 | i 45.1 | |||||||||||
Net
income (loss) attributable to partners | $ | i 8.7 | $ | ( i 24.3 | ) | $ | i 203.2 | $ | ( i 49.8 | ) | |||||
Subordinated
unitholders’ interest in net income | $ | i 0.1 | $ | i — | $ | i 1.2 | $ | i — | |||||||
Common
unitholders’ interest in net income (loss) | $ | i 8.6 | $ | ( i 24.3 | ) | $ | i 202.0 | $ | ( i 49.8 | ) | |||||
Net
income (loss) per limited partner unit: | |||||||||||||||
Basic | $ | i 0.12 | $ | ( i 0.34 | ) | $ | i 2.81 | $ | ( i 0.70 | ) | |||||
Diluted | $ | i 0.12 | $ | ( i 0.34 | ) | $ | i 2.66 | $ | ( i 0.70 | ) | |||||
Weighted-average
limited partners’ units outstanding: | |||||||||||||||
Basic | i 71.8 | i 71.2 | i 71.8 | i 71.2 | |||||||||||
Dilutive | i 3.7 | i — | i 4.6 | i — | |||||||||||
Diluted | i 75.5 | i 71.2 | i 76.4 | i 71.2 |
CRESTWOOD EQUITY PARTNERS LP CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) (unaudited) | |||||||||||||||
Three
Months Ended | Nine Months Ended | ||||||||||||||
September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net
income (loss) | $ | i 33.6 | $ | ( i 5.2 | ) | $ | i 272.7 | $ | i 7.4 | ||||||
Change
in fair value of Suburban Propane Partners, L.P. units | ( i 0.1 | ) | i — | i 0.6 | ( i 0.1 | ) | |||||||||
Comprehensive
income (loss) | i 33.5 | ( i 5.2 | ) | i 273.3 | i 7.3 | ||||||||||
Comprehensive
income attributable to non-controlling partner | i 9.9 | i 4.1 | i 24.5 | i 12.1 | |||||||||||
Comprehensive
income (loss) attributable to Crestwood Equity Partners LP | $ | i 23.6 | $ | ( i 9.3 | ) | $ | i 248.8 | $ | ( i 4.8 | ) |
CRESTWOOD EQUITY PARTNERS LP CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL (in millions) (unaudited) | ||||||||||||||||||||||||
Preferred | Partners | |||||||||||||||||||||||
Units | Capital | Common
Units | Subordinated Units | Capital | Non-Controlling Partner | Total Partners’ Capital | ||||||||||||||||||
Balance at December 31, 2018 | i 71.3 | $ | i 612.0 | i 71.2 | i 0.4 | $ | i 1,240.5 | $ | i 181.3 | $ | i 2,033.8 | |||||||||||||
Distributions
to partners | — | ( i 15.0 | ) | — | — | ( i 43.1 | ) | ( i 3.3 | ) | ( i 61.4 | ) | |||||||||||||
Unit-based
compensation charges | — | — | i 0.9 | — | i 17.3 | — | i 17.3 | |||||||||||||||||
Taxes
paid for unit-based compensation vesting | — | — | ( i 0.2 | ) | — | ( i 7.0 | ) | — | ( i 7.0 | ) | ||||||||||||||
Change
in fair value of Suburban Propane Partners, L.P. units | — | — | — | — | i 0.4 | — | i 0.4 | |||||||||||||||||
Other | — | — | — | — | ( i 0.7 | ) | — | ( i 0.7 | ) | |||||||||||||||
Net
income (loss) | — | i 15.0 | — | — | ( i 4.9 | ) | i 4.0 | i 14.1 | ||||||||||||||||
Balance
at March 31, 2019 | i 71.3 | $ | i 612.0 | i 71.9 | i 0.4 | $ | i 1,202.5 | $ | i 182.0 | $ | i 1,996.5 | |||||||||||||
Distributions
to partners | — | ( i 15.0 | ) | — | — | ( i 43.1 | ) | ( i 3.3 | ) | ( i 61.4 | ) | |||||||||||||
Unit-based
compensation charges | — | — | — | — | i 11.3 | — | i 11.3 | |||||||||||||||||
Taxes
paid for unit-based compensation vesting | — | — | ( i 0.1 | ) | — | ( i 3.6 | ) | — | ( i 3.6 | ) | ||||||||||||||
Change
in fair value of Suburban Propane Partners, L.P. units | — | — | — | — | i 0.3 | — | i 0.3 | |||||||||||||||||
Non-controlling
interest reclassification (Note 10) | — | — | — | — | — | ( i 178.8 | ) | ( i 178.8 | ) | |||||||||||||||
Other | — | — | — | — | ( i 0.4 | ) | i 0.1 | ( i 0.3 | ) | |||||||||||||||
Net
income | — | i 15.0 | — | — | i 199.4 | — | i 214.4 | |||||||||||||||||
Balance
at June 30, 2019 | i 71.3 | $ | i 612.0 | i 71.8 | i 0.4 | $ | i 1,366.4 | $ | i — | $ | i 1,978.4 | |||||||||||||
Distributions
to partners | — | ( i 15.0 | ) | — | — | ( i 43.1 | ) | i — | ( i 58.1 | ) | ||||||||||||||
Unit-based
compensation charges | — | — | — | — | i 9.3 | — | i 9.3 | |||||||||||||||||
Taxes
paid for unit-based compensation vesting | — | — | i — | — | ( i 0.3 | ) | — | ( i 0.3 | ) | |||||||||||||||
Change
in fair value of Suburban Propane Partners, L.P. units | — | — | — | — | ( i 0.1 | ) | — | ( i 0.1 | ) | |||||||||||||||
Other | — | — | — | — | ( i 0.3 | ) | — | ( i 0.3 | ) | |||||||||||||||
Net
income | — | i 15.0 | — | — | i 8.7 | — | i 23.7 | |||||||||||||||||
Balance
at September 30, 2019 | i 71.3 | $ | i 612.0 | i 71.8 | i 0.4 | $ | i 1,340.6 | $ | i — | $ | i 1,952.6 |
CRESTWOOD EQUITY PARTNERS LP CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL (continued) (in millions) (unaudited) | ||||||||||||||||||||||||
Preferred | Partners | |||||||||||||||||||||||
Units | Capital | Common
Units | Subordinated Units | Capital | Non-Controlling Partner | Total Partners’ Capital | ||||||||||||||||||
Balance at December 31, 2017 | i 71.3 | $ | i 612.0 | i 70.3 | i 0.4 | $ | i 1,393.5 | $ | i 175.0 | $ | i 2,180.5 | |||||||||||||
Cumulative
effect of accounting change | — | — | — | — | i 7.5 | — | i 7.5 | |||||||||||||||||
Distributions
to partners | — | ( i 15.0 | ) | — | — | ( i 42.7 | ) | — | ( i 57.7 | ) | ||||||||||||||
Unit-based
compensation charges | — | — | i 1.2 | — | i 7.2 | — | i 7.2 | |||||||||||||||||
Taxes
paid for unit-based compensation vesting | — | — | ( i 0.2 | ) | — | ( i 6.3 | ) | — | ( i 6.3 | ) | ||||||||||||||
Change
in fair value of Suburban Propane Partners, L.P. units | — | — | — | — | ( i 0.3 | ) | — | ( i 0.3 | ) | |||||||||||||||
Other | — | ( i 0.1 | ) | — | — | ( i 0.1 | ) | — | ( i 0.2 | ) | ||||||||||||||
Net
income | — | i 15.0 | — | — | i 15.1 | i 4.0 | i 34.1 | |||||||||||||||||
Balance
at March 31, 2018 | i 71.3 | $ | i 611.9 | i 71.3 | i 0.4 | $ | i 1,373.9 | $ | i 179.0 | $ | i 2,164.8 | |||||||||||||
Distributions
to partners | — | ( i 15.0 | ) | — | — | ( i 42.7 | ) | ( i 3.3 | ) | ( i 61.0 | ) | |||||||||||||
Unit-based
compensation charges | — | — | — | — | i 10.3 | — | i 10.3 | |||||||||||||||||
Taxes
paid for unit-based compensation vesting | — | — | — | — | ( i 0.6 | ) | — | ( i 0.6 | ) | |||||||||||||||
Change
in fair value of Suburban Propane Partners, L.P. units | — | — | — | — | i 0.2 | — | i 0.2 | |||||||||||||||||
Other | — | — | — | — | ( i 0.2 | ) | — | ( i 0.2 | ) | |||||||||||||||
Net
income (loss) | — | i 15.1 | — | — | ( i 40.6 | ) | i 4.0 | ( i 21.5 | ) | |||||||||||||||
Balance
at June 30, 2018 | i 71.3 | $ | i 612.0 | i 71.3 | i 0.4 | $ | i 1,300.3 | $ | i 179.7 | $ | i 2,092.0 | |||||||||||||
Distributions
to partners | — | ( i 15.0 | ) | — | — | ( i 42.7 | ) | ( i 3.3 | ) | ( i 61.0 | ) | |||||||||||||
Unit-based
compensation charges | — | — | ( i 0.1 | ) | — | i 10.4 | — | i 10.4 | ||||||||||||||||
Other | — | — | — | — | ( i 0.3 | ) | — | ( i 0.3 | ) | |||||||||||||||
Net
income (loss) | — | i 15.0 | — | — | ( i 24.3 | ) | i 4.1 | ( i 5.2 | ) | |||||||||||||||
Balance
at September 30, 2018 | i 71.3 | $ | i 612.0 | i 71.2 | i 0.4 | $ | i 1,243.4 | $ | i 180.5 | $ | i 2,035.9 |
CRESTWOOD EQUITY PARTNERS LP CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) | |||||||
Nine
Months Ended | |||||||
2019 | 2018 | ||||||
Operating activities | |||||||
Net income | $ | i 272.7 | $ | i 7.4 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion | i 140.6 | i 128.8 | |||||
Amortization
of debt-related deferred costs | i 4.6 | i 5.4 | |||||
Unit-based
compensation charges | i 41.6 | i 27.9 | |||||
Loss
on long-lived assets, net | i 2.1 | i 27.7 | |||||
Gain
on acquisition | ( i 209.4 | ) | i — | ||||
Earnings
from unconsolidated affiliates, net, adjusted for cash distributions received | i 6.9 | ( i 0.3 | ) | ||||
Deferred
income taxes | i — | ( i 0.2 | ) | ||||
Other | i — | i 0.2 | |||||
Changes
in operating assets and liabilities | i 19.2 | i 4.0 | |||||
Net
cash provided by operating activities | i 278.3 | i 200.9 | |||||
Investing
activities | |||||||
Acquisition, net of cash acquired (Note 3) | ( i 462.1 | ) | i — | ||||
Purchases
of property, plant and equipment | ( i 347.0 | ) | ( i 205.7 | ) | |||
Investment
in unconsolidated affiliates | ( i 52.3 | ) | ( i 27.7 | ) | |||
Capital
distributions from unconsolidated affiliates | i 27.3 | i 34.6 | |||||
Other | ( i 0.4 | ) | i 8.6 | ||||
Net
cash used in investing activities | ( i 834.5 | ) | ( i 190.2 | ) | |||
Financing
activities | |||||||
Proceeds from the issuance of long-term debt | i 1,993.7 | i 1,152.1 | |||||
Payments
on long-term debt | ( i 1,475.2 | ) | ( i 973.7 | ) | |||
Payments
on finance/capital leases | ( i 2.6 | ) | ( i 1.1 | ) | |||
Payments
for deferred financing costs | ( i 9.0 | ) | i — | ||||
Net
proceeds from issuance of non-controlling interest | i 235.0 | i — | |||||
Distributions
to partners | ( i 129.3 | ) | ( i 128.1 | ) | |||
Distributions
to non-controlling partner | ( i 15.8 | ) | ( i 6.6 | ) | |||
Distributions
to preferred unit holders | ( i 45.0 | ) | ( i 45.0 | ) | |||
Taxes
paid for unit-based compensation vesting | ( i 10.9 | ) | ( i 6.9 | ) | |||
Other | ( i 0.3 | ) | ( i 0.3 | ) | |||
Net
cash provided by (used in) financing activities | i 540.6 | ( i 9.6 | ) | ||||
Net
change in cash and restricted cash | ( i 15.6 | ) | i 1.1 | ||||
Cash
and restricted cash at beginning of period | i 17.2 | i 1.3 | |||||
Cash
and restricted cash at end of period | $ | i 1.6 | $ | i 2.4 | |||
Supplemental
schedule of noncash investing and financing activities | |||||||
Net change to property, plant and equipment through accounts payable and accrued expenses | $ | ( i 22.9 | ) | $ | ( i 1.6 | ) |
CRESTWOOD MIDSTREAM PARTNERS LP CONSOLIDATED BALANCE SHEETS (in millions) | |||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash | $ | i 0.9 | $ | i 0.2 | |||
Restricted
cash | i — | i 16.3 | |||||
Accounts
receivable, less allowance for doubtful accounts of $0.3 million at both September 30, 2019 and December 31, 2018 | i 258.0 | i 249.9 | |||||
Inventory
| i 43.5 | i 64.6 | |||||
Assets
from price risk management activities | i 57.4 | i 34.7 | |||||
Prepaid
expenses and other current assets | i 8.4 | i 11.3 | |||||
Total
current assets | i 368.2 | i 377.0 | |||||
Property,
plant and equipment | i 3,835.1 | i 2,928.2 | |||||
Less:
accumulated depreciation | i 834.2 | i 725.9 | |||||
Property,
plant and equipment, net | i 3,000.9 | i 2,202.3 | |||||
Intangible
assets | i 1,076.3 | i 770.3 | |||||
Less:
accumulated amortization | i 256.4 | i 216.5 | |||||
Intangible
assets, net | i 819.9 | i 553.8 | |||||
Goodwill | i 218.9 | i 138.6 | |||||
Operating
lease right-of-use assets, net | i 58.6 | — | |||||
Investments in unconsolidated affiliates | i 979.6 | i 1,188.2 | |||||
Other
non-current assets | i 2.0 | i 2.1 | |||||
Total
assets | $ | i 5,448.1 | $ | i 4,462.0 | |||
Liabilities
and capital | |||||||
Current liabilities: | |||||||
Accounts payable | $ | i 195.8 | $ | i 210.5 | |||
Accrued
expenses and other liabilities | i 168.1 | i 111.3 | |||||
Liabilities
from price risk management activities | i 4.8 | i 5.8 | |||||
Current
portion of long-term debt | i 0.2 | i 0.9 | |||||
Total
current liabilities | i 368.9 | i 328.5 | |||||
Long-term
debt, less current portion | i 2,267.2 | i 1,752.4 | |||||
Long-term
operating lease liabilities | i 45.6 | — | |||||
Other long-term liabilities | i 221.8 | i 171.0 | |||||
Deferred
income taxes | i 0.7 | i 0.6 | |||||
Total
liabilities | i 2,904.2 | i 2,252.5 | |||||
Commitments
and contingencies (Note 11) | |||||||
Interest of non-controlling partner in subsidiary (Note 10) | i 425.1 | — | |||||
Partners’
capital | i 2,118.8 | i 2,028.2 | |||||
Interest
of non-controlling partner in subsidiary (Note 10) | — | i 181.3 | |||||
Total
partners’ capital | i 2,118.8 | i 2,209.5 | |||||
Total
liabilities and capital | $ | i 5,448.1 | $ | i 4,462.0 |
CRESTWOOD MIDSTREAM PARTNERS LP CONSOLIDATED STATEMENTS OF OPERATIONS (in millions) (unaudited) | |||||||||||||||
Three
Months Ended | Nine Months Ended | ||||||||||||||
September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
Product
revenues: | |||||||||||||||
Gathering and processing | $ | i 155.0 | $ | i 173.5 | $ | i 370.8 | $ | i 632.6 | |||||||
Marketing,
supply and logistics | i 555.4 | i 671.5 | i 1,664.3 | i 1,987.6 | |||||||||||
Related
party (Note 12) | i 0.3 | i — | i 2.8 | i — | |||||||||||
i 710.7 | i 845.0 | i 2,037.9 | i 2,620.2 | ||||||||||||
Service
revenues: | |||||||||||||||
Gathering and processing | i 102.8 | i 68.8 | i 269.0 | i 205.4 | |||||||||||
Storage
and transportation | i 4.1 | i 3.5 | i 16.8 | i 12.8 | |||||||||||
Marketing,
supply and logistics | i 6.0 | i 12.6 | i 18.5 | i 46.4 | |||||||||||
Related
party (Note 12) | i — | i 0.3 | i — | i 0.9 | |||||||||||
i 112.9 | i 85.2 | i 304.3 | i 265.5 | ||||||||||||
Total
revenues | i 823.6 | i 930.2 | i 2,342.2 | i 2,885.7 | |||||||||||
Costs
of product/services sold (exclusive of items shown separately below): | |||||||||||||||
Product costs | i 646.8 | i 770.8 | i 1,829.8 | i 2,391.5 | |||||||||||
Product
costs - related party (Note 12) | i 3.8 | i 45.7 | i 39.1 | i 91.0 | |||||||||||
Service
costs | i 6.8 | i 11.0 | i 21.3 | i 36.2 | |||||||||||
Total
costs of product/services sold | i 657.4 | i 827.5 | i 1,890.2 | i 2,518.7 | |||||||||||
Operating
expenses and other: | |||||||||||||||
Operations and maintenance | i 36.0 | i 29.6 | i 99.3 | i 96.0 | |||||||||||
General
and administrative | i 23.7 | i 24.6 | i 80.6 | i 69.9 | |||||||||||
Depreciation,
amortization and accretion | i 55.1 | i 42.7 | i 151.2 | i 137.9 | |||||||||||
Loss
on long-lived assets, net | i 0.1 | i 3.6 | i 2.1 | i 27.7 | |||||||||||
Gain
on acquisition | i — | i — | ( i 209.4 | ) | i — | ||||||||||
i 114.9 | i 100.5 | i 123.8 | i 331.5 | ||||||||||||
Operating
income | i 51.3 | i 2.2 | i 328.2 | i 35.5 | |||||||||||
Earnings
from unconsolidated affiliates, net | i 10.4 | i 15.1 | i 21.0 | i 39.5 | |||||||||||
Interest
and debt expense, net | ( i 30.6 | ) | ( i 25.1 | ) | ( i 83.3 | ) | ( i 73.8 | ) | |||||||
Income
(loss) before income taxes | i 31.1 | ( i 7.8 | ) | i 265.9 | i 1.2 | ||||||||||
Benefit
(provision) for income taxes | i 0.1 | i — | ( i 0.2 | ) | ( i 0.1 | ) | |||||||||
Net
income (loss) | i 31.2 | ( i 7.8 | ) | i 265.7 | i 1.1 | ||||||||||
Net
income attributable to non-controlling partner | i 9.9 | i 4.1 | i 24.5 | i 12.1 | |||||||||||
Net
income (loss) attributable to Crestwood Midstream Partners LP | $ | i 21.3 | $ | ( i 11.9 | ) | $ | i 241.2 | $ | ( i 11.0 | ) |
CRESTWOOD MIDSTREAM PARTNERS LP CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL (in millions) (unaudited) | ||||||||||||
Partners | Non-Controlling
Partner | Total Partners’ Capital | ||||||||||
Balance at December 31, 2018 | $ | i 2,028.2 | $ | i 181.3 | $ | i 2,209.5 | ||||||
Distributions
to partners | ( i 57.8 | ) | ( i 3.3 | ) | ( i 61.1 | ) | ||||||
Unit-based
compensation charges | i 17.3 | — | i 17.3 | |||||||||
Taxes
paid for unit-based compensation vesting | ( i 7.0 | ) | — | ( i 7.0 | ) | |||||||
Other | ( i 0.3 | ) | — | ( i 0.3 | ) | |||||||
Net
income | i 7.6 | i 4.0 | i 11.6 | |||||||||
Balance
at March 31, 2019 | $ | i 1,988.0 | $ | i 182.0 | $ | i 2,170.0 | ||||||
Distributions
to partners | ( i 59.7 | ) | ( i 3.3 | ) | ( i 63.0 | ) | ||||||
Unit-based
compensation charges | i 11.3 | — | i 11.3 | |||||||||
Taxes
paid for unit-based compensation vesting | ( i 3.6 | ) | — | ( i 3.6 | ) | |||||||
Non-controlling
interest reclassification (Note 10) | — | ( i 178.8 | ) | ( i 178.8 | ) | |||||||
Other | ( i 0.1 | ) | i 0.1 | i — | ||||||||
Net
income | i 212.3 | — | i 212.3 | |||||||||
Balance
at June 30, 2019 | $ | i 2,148.2 | $ | i — | $ | i 2,148.2 | ||||||
Distributions
to partners | ( i 59.8 | ) | i — | ( i 59.8 | ) | |||||||
Unit-based
compensation charges | i 9.3 | — | i 9.3 | |||||||||
Taxes
paid for unit-based compensation vesting | ( i 0.3 | ) | — | ( i 0.3 | ) | |||||||
Other | i 0.1 | — | i 0.1 | |||||||||
Net
income | i 21.3 | i — | i 21.3 | |||||||||
Balance
at September 30, 2019 | $ | i 2,118.8 | $ | i — | $ | i 2,118.8 |
Partners | Non-Controlling
Partner | Total Partners’ Capital | ||||||||||
Balance at December 31, 2017 | $ | i 2,195.4 | $ | i 175.0 | $ | i 2,370.4 | ||||||
Cumulative
effect of accounting change | i 7.5 | — | i 7.5 | |||||||||
Distributions
to partners | ( i 60.5 | ) | — | ( i 60.5 | ) | |||||||
Unit-based
compensation charges | i 7.2 | — | i 7.2 | |||||||||
Taxes
paid for unit-based compensation vesting | ( i 6.3 | ) | — | ( i 6.3 | ) | |||||||
Other | i 0.2 | — | i 0.2 | |||||||||
Net
income | i 28.4 | i 4.0 | i 32.4 | |||||||||
Balance
at March 31, 2018 | $ | i 2,171.9 | $ | i 179.0 | $ | i 2,350.9 | ||||||
Distributions
to partners | ( i 59.5 | ) | ( i 3.3 | ) | ( i 62.8 | ) | ||||||
Unit-based
compensation charges | i 10.3 | — | i 10.3 | |||||||||
Taxes
paid for unit-based compensation vesting | ( i 0.6 | ) | — | ( i 0.6 | ) | |||||||
Net
income (loss) | ( i 27.5 | ) | i 4.0 | ( i 23.5 | ) | |||||||
Balance
at June 30, 2018 | $ | i 2,094.6 | $ | i 179.7 | $ | i 2,274.3 | ||||||
Distributions
to partners | ( i 59.0 | ) | ( i 3.3 | ) | ( i 62.3 | ) | ||||||
Unit-based
compensation charges | i 10.4 | — | i 10.4 | |||||||||
Other | ( i 0.1 | ) | — | ( i 0.1 | ) | |||||||
Net
income (loss) | ( i 11.9 | ) | i 4.1 | ( i 7.8 | ) | |||||||
Balance
at September 30, 2018 | $ | i 2,034.0 | $ | i 180.5 | $ | i 2,214.5 |
CRESTWOOD MIDSTREAM PARTNERS LP CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) | |||||||
Nine
Months Ended | |||||||
2019 | 2018 | ||||||
Operating activities | |||||||
Net income | $ | i 265.7 | $ | i 1.1 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion | i 151.2 | i 137.9 | |||||
Amortization
of debt-related deferred costs | i 4.6 | i 5.4 | |||||
Unit-based
compensation charges | i 41.6 | i 27.9 | |||||
Loss
on long-lived assets | i 2.1 | i 27.7 | |||||
Gain
on acquisition | ( i 209.4 | ) | i — | ||||
Earnings
from unconsolidated affiliates, net, adjusted for cash distributions received | i 6.9 | ( i 0.3 | ) | ||||
Deferred
income taxes | i 0.1 | ( i 0.1 | ) | ||||
Other
| i — | i 0.2 | |||||
Changes
in operating assets and liabilities | i 18.2 | i 6.6 | |||||
Net
cash provided by operating activities | i 281.0 | i 206.4 | |||||
Investing
activities | |||||||
Acquisition, net of cash acquired (Note 3) | ( i 462.1 | ) | i — | ||||
Purchases
of property, plant and equipment | ( i 347.0 | ) | ( i 205.7 | ) | |||
Investment
in unconsolidated affiliates | ( i 52.3 | ) | ( i 27.7 | ) | |||
Capital
distributions from unconsolidated affiliates | i 27.3 | i 34.6 | |||||
Other | ( i 0.4 | ) | i 8.6 | ||||
Net
cash used in investing activities | ( i 834.5 | ) | ( i 190.2 | ) | |||
Financing
activities | |||||||
Proceeds from the issuance of long-term debt | i 1,993.7 | i 1,152.1 | |||||
Payments
on long-term debt | ( i 1,475.2 | ) | ( i 973.7 | ) | |||
Payments
on finance/capital leases | ( i 2.6 | ) | ( i 1.1 | ) | |||
Payments
for deferred financing costs | ( i 9.0 | ) | i — | ||||
Net
proceeds from issuance of non-controlling interest | i 235.0 | i — | |||||
Distributions
to partners | ( i 177.3 | ) | ( i 179.0 | ) | |||
Distributions
paid to non-controlling partners | ( i 15.8 | ) | ( i 6.6 | ) | |||
Taxes
paid for unit-based compensation vesting | ( i 10.9 | ) | ( i 6.9 | ) | |||
Net
cash provided by (used in) financing activities | i 537.9 | ( i 15.2 | ) | ||||
Net
change in cash and restricted cash | ( i 15.6 | ) | i 1.0 | ||||
Cash
and restricted cash at beginning of period | i 16.5 | i 1.0 | |||||
Cash
and restricted cash at end of period | $ | i 0.9 | $ | i 2.0 | |||
Supplemental
schedule of non-cash investing and financing activities | |||||||
Net change to property, plant and equipment through accounts payable and accrued expenses | $ | ( i 22.9 | ) | $ | ( i 1.6 | ) |
Operating Leases | |||
Operating lease right-of-use assets, net | $ | i 58.6 | |
Accrued
expenses and other liabilities | $ | i 18.5 | |
Long-term operating lease liabilities | i 45.6 | ||
Total
operating lease liabilities | $ | i 64.1 | |
Finance Leases | |||
Property, plant and equipment | $ | i 14.7 | |
Less: accumulated
depreciation | i 4.5 | ||
Property, plant and equipment, net | $ | i 10.2 | |
Accrued
expenses and other liabilities | $ | i 3.1 | |
Other long-term liabilities | i 5.9 | ||
Total
finance lease liabilities | $ | i 9.0 |
Three
Months Ended | Nine Months Ended | ||||||
Operating leases: | |||||||
Operating lease
expense (1)(2) | $ | i 6.5 | $ | i 21.5 | |||
Sublease
income(3) | ( i 0.3 | ) | ( i 0.7 | ) | |||
Total
operating lease expense, net | $ | i 6.2 | $ | i 20.8 | |||
Finance
leases: | |||||||
Amortization of right-of-use assets(4) | $ | i 0.9 | $ | i 2.7 | |||
Interest
on lease liabilities(5) | i 0.1 | i 0.5 | |||||
Total
finance lease expense | $ | i 1.0 | $ | i 3.2 |
(1) | Approximately
$ i 3.8 million and $ i 13.3 million is included in costs of product/services
sold on our consolidated statements of operations for the three and nine months ended September 30, 2019, and $ i 2.7 million and $ i 8.2
million is included in operations and maintenance expense on our consolidated statements of operations for the three and nine months ended September 30, 2019. |
(2) | Includes short-term and variable lease costs of approximately $ i 0.7
million and $ i 2.7 million for the three and nine months ended September 30, 2019. |
(3) | Included in marketing, supply and logistics service revenues on our consolidated
statements of operations. |
(4) | Included in depreciation, amortization and accretion expense on our consolidated statements of operations. |
(5) | Included in interest and debt expense, net on our consolidated statements of operations. |
Cash paid for lease liabilities: | |||
Operating cash flows from operating leases | $ | i 17.5 | |
Operating
cash flows from finance leases | $ | i 0.5 | |
Financing cash flows from finance leases | $ | i 2.6 | |
Right-of-use
assets obtained in exchange for lease obligations: | |||
Operating leases(1) | $ | i 4.2 | |
Finance
leases | $ | i 1.7 |
(1) | Includes approximately $ i 2.9
million of operating leases obtained from the Jackalope Acquisition, which is further discussed in Note 3. |
Weighted-average remaining lease term (in years): | ||
Operating
leases | i 4.4 | |
Finance leases | i 2.8 | |
Weighted-average
discount rate: | ||
Operating leases | i 5.9 | % |
Finance leases | i 7.3 | % |
Topic
842 | Topic 840 | ||||||||||||||||||||||
Year Ending December 31, | Operating Leases | Finance Leases | Total | Operating
Leases | Capital Leases | Total | |||||||||||||||||
2019(1) | $ | i 5.4 | $ | i 0.9 | $ | i 6.3 | $ | i 22.3 | $ | i 3.0 | $ | i 25.3 | |||||||||||
2020 | i 20.8 | i 3.6 | i 24.4 | i 18.1 | i 3.3 | i 21.4 | |||||||||||||||||
2021 | i 16.3 | i 3.5 | i 19.8 | i 14.4 | i 3.2 | i 17.6 | |||||||||||||||||
2022 | i 11.1 | i 1.9 | i 13.0 | i 9.7 | i 1.9 | i 11.6 | |||||||||||||||||
2023 | i 6.7 | i 0.1 | i 6.8 | i 6.0 | i — | i 6.0 | |||||||||||||||||
Thereafter | i 13.6 | i — | i 13.6 | i 10.7 | i — | i 10.7 | |||||||||||||||||
Total
lease payments | i 73.9 | i 10.0 | i 83.9 | i 81.2 | i 11.4 | i 92.6 | |||||||||||||||||
Less:
Interest | i 9.8 | i 1.0 | i 10.8 | i — | i 1.3 | i 1.3 | |||||||||||||||||
Present
value of lease liabilities | $ | i 64.1 | $ | i 9.0 | $ | i 73.1 | $ | i 81.2 | $ | i 10.1 | $ | i 91.3 |
(1) |
Cash | $ | i 22.5 | |
Other
current assets | i 30.9 | ||
Property, plant and equipment | i 532.9 | ||
Intangible
assets | i 306.0 | ||
Goodwill | i 80.3 | ||
Current
liabilities | ( i 30.4 | ) | |
Other long-term liabilities | ( i 21.5 | ) | |
Estimated
fair value of 100% interest in Jackalope | i 920.7 | ||
Less: | |||
Elimination
of equity investment in Jackalope | i 226.7 | ||
Gain on acquisition of Jackalope | i 209.4 | ||
Total
purchase price | $ | i 484.6 |
Three
Months Ended | Nine Months Ended | |||||||||||
September 30, | ||||||||||||
2018 | 2019 | 2018 | ||||||||||
Revenues | $ | i 949.5 | $ | i 2,362.9 | $ | i 2,936.8 | ||||||
Net
income (loss) | $ | ( i 10.5 | ) | $ | i 266.3 | $ | ( i 10.8 | ) |
Three Months Ended | Nine Months Ended | |||||||||||
September
30, | ||||||||||||
2018 | 2019 | 2018 | ||||||||||
Revenues | $ | i 949.5 | $ | i 2,362.9 | $ | i 2,936.8 | ||||||
Net
income (loss) | $ | ( i 13.1 | ) | $ | i 259.3 | $ | ( i 17.1 | ) |
CEQP | CMLP | ||||||||||||||
September
30, | December 31, | September 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Accrued
expenses(1) | $ | i 57.0 | $ | i 64.8 | $ | i 56.1 | $ | i 63.7 | |||||||
Accrued
property taxes | i 6.0 | i 2.6 | i 6.0 | i 2.6 | |||||||||||
Income
tax payable | i 0.2 | i 0.3 | i 0.2 | i 0.3 | |||||||||||
Interest
payable | i 53.8 | i 19.8 | i 53.8 | i 19.8 | |||||||||||
Accrued
additions to property, plant and equipment | i 20.1 | i 10.5 | i 20.1 | i 10.5 | |||||||||||
Operating
leases | i 18.5 | — | i 18.5 | — | |||||||||||
Finance
leases | i 3.1 | i 2.4 | i 3.1 | i 2.4 | |||||||||||
Deferred
revenue | i 10.3 | i 12.0 | i 10.3 | i 12.0 | |||||||||||
Total
accrued expenses and other liabilities | $ | i 169.0 | $ | i 112.4 | $ | i 168.1 | $ | i 111.3 |
(1) | Includes
$ i 16.2 million of related party accrued expenses at December 31, 2018 related to deposits received from Jackalope prior to the acquisition of the remaining i 50%
equity interest in Jackalope from Williams in April 2019. |
Investment | Earnings
(Loss) from Unconsolidated Affiliates | ||||||||||||||||||||||
September 30, | December 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Stagecoach
Gas Services LLC(1) | $ | i 817.1 | $ | i 830.4 | $ | i 10.5 | $ | i 8.8 | $ | i 23.9 | $ | i 21.5 | |||||||||||
Jackalope
Gas Gathering Services, L.L.C.(2) | i — | i 210.2 | i — | i 4.5 | i 3.7 | i 11.3 | |||||||||||||||||
Crestwood
Permian Basin Holdings LLC(3) | i 115.6 | i 104.3 | ( i 0.5 | ) | i 1.1 | ( i 7.2 | ) | i 4.5 | |||||||||||||||
Tres
Palacios Holdings LLC(4) | i 38.6 | i 35.0 | i 0.5 | i 0.1 | i 0.8 | i 0.5 | |||||||||||||||||
Powder
River Basin Industrial Complex, LLC(5) | i 8.3 | i 8.3 | ( i 0.1 | ) | i 0.6 | ( i 0.2 | ) | i 1.7 | |||||||||||||||
Total | $ | i 979.6 | $ | i 1,188.2 | $ | i 10.4 | $ | i 15.1 | $ | i 21.0 | $ | i 39.5 |
(1) | As
of September 30, 2019, our equity in the underlying net assets of Stagecoach Gas Services LLC (Stagecoach Gas) exceeded our investment balance by approximately $ i 51.3 million. This excess amount is entirely attributable to goodwill and, as such, is not
subject to amortization. Pursuant to the Stagecoach limited liability company agreement, our share of Stagecoach’s equity earnings increased from i 40% to i 50%
effective July 1, 2019. Our Stagecoach Gas investment is included in our storage and transportation segment. |
(2) | On April 9, 2019, Crestwood Niobrara acquired Williams’ i 50%
equity interest in Jackalope, and as a result, Crestwood Niobrara controls and owns i 100% of the equity interests in Jackalope. As a result of this transaction, we eliminated our historical equity investment in Jackalope of approximately $ i 226.7
million as of April 9, 2019 and began consolidating Jackalope’s operations. Our Jackalope investment was included in our gathering and processing segment. For a further discussion of Crestwood Niobrara’s acquisition of the remaining i 50% equity interest in Jackalope, see Note 3. |
(3) | As
of September 30, 2019, the difference of $ i 10.6 million between our equity in Crestwood Permian’s net assets and our investment balance is not subject to amortization. Pursuant to the Crestwood Permian limited liability company agreement, we were
allocated 100% of Crestwood New Mexico Pipeline LLC’s (Crestwood New Mexico) earnings through June 30, 2018. Effective July 1, 2018, our equity earnings from Crestwood New Mexico is based on our ownership percentage of Crestwood Permian, which is currently i 50%. Our Crestwood Permian investment is included
in our gathering and processing segment. |
(4) | As of September 30, 2019, our equity in the underlying net assets of Tres Palacios Holdings LLC (Tres Holdings) exceeded our investment balance by approximately $ i 24.4
million. Our Tres Holdings investment is included in our storage and transportation segment. |
(5) | As of September 30, 2019, our equity in the underlying net assets of Powder River Basin Industrial Complex, LLC (PRBIC) exceeded our investment balance by approximately $ i 5.6
million. Our PRBIC investment is included in our storage and transportation segment. |
Nine
Months Ended September 30, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Operating Revenues | Operating Expenses | Net Income (Loss) | Operating
Revenues | Operating Expenses | Net Income | ||||||||||||||||||
Stagecoach Gas | $ | i 120.8 | $ | i 61.1 | $ | i 60.0 | $ | i 129.3 | $ | i 59.1 | $ | i 70.2 | |||||||||||
Crestwood
Permian | i 37.2 | i 50.6 | ( i 14.5 | ) | i 64.4 | i 62.4 | i 5.8 | ||||||||||||||||
Other(1) | i 47.1 | i 41.5 | i 5.6 | i 49.6 | i 39.0 | i 10.6 | |||||||||||||||||
Total | $ | i 205.1 | $ | i 153.2 | $ | i 51.1 | $ | i 243.3 | $ | i 160.5 | $ | i 86.6 |
(1) | Includes
our Jackalope (prior to the acquisition of the remaining i 50% equity interest from Williams), Tres Holdings and PRBIC equity investments during the nine months ended September 30, 2019 and 2018. We
amortize the excess basis in these equity investments as an increase in our earnings from unconsolidated affiliates. We recorded amortization of the excess basis in our Tres Holdings equity investment of $ i 0.9 million during both the nine months ended September 30, 2019 and 2018. We
recorded amortization of the excess basis in our PRBIC equity investment of $ i 0.3 million and $ i 0.4
million during the nine months ended September 30, 2019 and 2018. We recorded amortization of the excess basis in the Jackalope equity investment of less than $ i 0.1 million
during both the nine months ended September 30, 2019 and 2018. |
Distributions(1) | Contributions | |||||||||||||||
Nine
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Stagecoach
Gas | $ | i 37.2 | $ | i 34.7 | $ | i — | $ | i — | ||||||||
Jackalope | i 11.6 | i 23.2 | i 24.4 | i 17.6 | ||||||||||||
Crestwood
Permian | i 2.9 | i 10.6 | i 21.4 | i 7.6 | ||||||||||||
Tres
Holdings | i 3.5 | i 3.9 | i 6.3 | i 2.5 | ||||||||||||
PRBIC | i — | i 1.4 | i 0.2 | i — | ||||||||||||
Total | $ | i 55.2 | $ | i 73.8 | $ | i 52.3 | $ | i 27.7 |
(1) | In
October 2019, we received cash distributions from Stagecoach Gas, Crestwood Permian and Tres Holdings of approximately $ i 15.1 million, $ i 2.1
million and $ i 2.8 million, respectively. |
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Product
revenues | $ | i 39.1 | $ | i 79.9 | $ | i 183.4 | $ | i 210.7 | ||||||||
Gain
(loss) reflected in costs of product/services sold | $ | i 14.9 | $ | ( i 16.7 | ) | $ | i 21.9 | $ | ( i 15.3 | ) |
Fixed Price Payor | Fixed Price Receiver | Fixed Price Payor | Fixed Price Receiver | ||||||||
Propane,
ethane, butane, heating oil and crude oil (MMBbls) | i 37.7 | i 41.0 | i 27.8 | i 30.1 | |||||||
Natural
gas (Bcf) | i 4.0 | i 8.8 | i 1.8 | i 1.8 |
Aggregate fair value of derivative instruments with credit-risk-related contingent features(1) | $ | i 0.8 | $ | i 2.2 | |||
NYMEX-related
net derivative liability position | $ | i 35.5 | $ | i 9.4 | |||
NYMEX-related
cash collateral posted | $ | i 52.8 | $ | i 21.7 | |||
Cash
collateral received, net | $ | i 21.9 | $ | i 14.2 |
(1) |
At September 30, 2019 and December 31, 2018, we posted less than $ i 0.1 million of collateral associated with these derivatives. |
• | Level 1—Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, listed equities and US government treasury securities. |
• | Level
2—Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include non-exchange-traded derivatives such as over the counter (OTC) forwards, options and physical exchanges. |
• | Level
3—Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. |
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
2023
Senior Notes | $ | i 694.7 | $ | i 719.1 | $ | i 693.6 | $ | i 668.1 | |||||||
2025
Senior Notes | $ | i 494.2 | $ | i 517.7 | $ | i 493.4 | $ | i 466.2 | |||||||
2027
Senior Notes | $ | i 591.8 | $ | i 613.7 | $ | i — | $ | i — |
Level 1 | Level 2 | Level 3 | Gross Fair Value | Contract Netting(1) | Collateral/Margin Received or
Paid | Fair Value | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Assets
from price risk management | $ | i 7.7 | $ | i 222.2 | $ | i — | $ | i 229.9 | $ | ( i 171.2 | ) | $ | ( i 1.3 | ) | $ | i 57.4 | |||||||||||
Suburban
Propane Partners, L.P. units(2) | i 3.4 | i — | i — | i 3.4 | — | — | i 3.4 | ||||||||||||||||||||
Total
assets at fair value | $ | i 11.1 | $ | i 222.2 | $ | i — | $ | i 233.3 | $ | ( i 171.2 | ) | $ | ( i 1.3 | ) | $ | i 60.8 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Liabilities
from price risk management | $ | i 6.4 | $ | i 201.8 | $ | i — | $ | i 208.2 | $ | ( i 171.2 | ) | $ | ( i 32.2 | ) | $ | i 4.8 | |||||||||||
Total
liabilities at fair value | $ | i 6.4 | $ | i 201.8 | $ | i — | $ | i 208.2 | $ | ( i 171.2 | ) | $ | ( i 32.2 | ) | $ | i 4.8 | |||||||||||
Level 1 | Level 2 | Level 3 | Gross Fair Value | Contract Netting(1) | Collateral/Margin Received or
Paid | Fair Value | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Assets
from price risk management | $ | i 12.4 | $ | i 160.7 | $ | i — | $ | i 173.1 | $ | ( i 140.3 | ) | $ | i 1.9 | $ | i 34.7 | ||||||||||||
Suburban
Propane Partners, L.P. units(2) | i 2.8 | i — | i — | i 2.8 | — | — | i 2.8 | ||||||||||||||||||||
Total
assets at fair value | $ | i 15.2 | $ | i 160.7 | $ | i — | $ | i 175.9 | $ | ( i 140.3 | ) | $ | i 1.9 | $ | i 37.5 | ||||||||||||
Liabilities | |||||||||||||||||||||||||||
Liabilities
from price risk management | $ | i 7.0 | $ | i 144.7 | $ | i — | $ | i 151.7 | $ | ( i 140.3 | ) | $ | ( i 5.6 | ) | $ | i 5.8 | |||||||||||
Total
liabilities at fair value | $ | i 7.0 | $ | i 144.7 | $ | i — | $ | i 151.7 | $ | ( i 140.3 | ) | $ | ( i 5.6 | ) | $ | i 5.8 |
(1) | Amounts
represent the impact of legally enforceable master netting agreements that allow us to settle positive and negative positions as well as cash collateral held or placed with the same counterparties. |
(2) | Amount is reflected in other assets on CEQP’s consolidated balance sheets. |
Credit
Facility | $ | i 497.6 | $ | i 578.2 | |||
2023
Senior Notes | i 700.0 | i 700.0 | |||||
2025
Senior Notes | i 500.0 | i 500.0 | |||||
2027
Senior Notes | i 600.0 | i — | |||||
Other
| i 0.6 | i 1.5 | |||||
Less:
deferred financing costs, net | i 30.8 | i 26.4 | |||||
Total
debt | i 2,267.4 | i 1,753.3 | |||||
Less:
current portion | i 0.2 | i 0.9 | |||||
Total
long-term debt, less current portion | $ | i 2,267.2 | $ | i 1,752.4 |
Three Months Ended | Nine
Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Preferred
units (1) | i 7.1 | i 7.1 | i 7.1 | i 7.1 | |||||||
Crestwood
Niobrara’s preferred units(1) | i — | i 5.1 | i — | i 5.1 | |||||||
Stock-based
compensation performance units(2) | i — | i 0.3 | i — | i 0.3 | |||||||
Subordinated
units(2) | i — | i 0.4 | i — | i 0.4 |
(1) | See
Note 10 for additional information regarding the potential conversion/redemption of our preferred units and Crestwood Niobrara’s preferred units to CEQP common units. |
(2) | For a description of our performance units and subordinated units, see our 2018 Annual Report on Form 10-K. |
Three Months Ended | Nine
Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Common
unitholders’ interest in net income (loss) | $ | i 8.6 | $ | ( i 24.3 | ) | $ | i 202.0 | $ | ( i 49.8 | ) | ||||||
Dilutive
effect of net income attributable to subordinated units | i 0.1 | i — | i 1.2 | i — | ||||||||||||
Diluted
net income (loss) | $ | i 8.7 | $ | ( i 24.3 | ) | $ | i 203.2 | $ | ( i 49.8 | ) | ||||||
Weighted-average
limited partners’ units outstanding - basic | i 71.8 | i 71.2 | i 71.8 | i 71.2 | ||||||||||||
Dilutive
effect of Crestwood Niobrara preferred units | i 3.0 | i — | i 3.9 | i — | ||||||||||||
Dilutive
effect of stock-based compensation performance units | i 0.3 | i — | i 0.3 | i — | ||||||||||||
Dilutive
effect of subordinated units | i 0.4 | i — | i 0.4 | i — | ||||||||||||
Weighted-average
limited partners’ units outstanding - diluted | i 75.5 | i 71.2 | i 76.4 | i 71.2 | ||||||||||||
Basic
earnings per unit: | ||||||||||||||||
Net income (loss) per limited partner unit | $ | i 0.12 | $ | ( i 0.34 | ) | $ | i 2.81 | $ | ( i 0.70 | ) | ||||||
Diluted
earnings per unit: | ||||||||||||||||
Net income (loss) per limited partner unit | $ | i 0.12 | $ | ( i 0.34 | ) | $ | i 2.66 | $ | ( i 0.70 | ) |
Record Date | Payment Date | Per Unit Rate | Cash Distributions (in millions) | |||||||
2019 | ||||||||||
$ | i 0.60 | $ | i 43.1 | |||||||
i 0.60 | i 43.1 | |||||||||
i 0.60 | i 43.1 | |||||||||
$ | i 129.3 | |||||||||
2018 | ||||||||||
$ | i 0.60 | $ | i 42.7 | |||||||
i 0.60 | i 42.7 | |||||||||
i 0.60 | i 42.7 | |||||||||
$ | i 128.1 |
• | The
Crestwood Niobrara Preferred Units are convertible by the preferred interest holder starting on January 1, 2021 into Crestwood Niobrara common units. The preferred interest holder has the option to contribute additional capital to Crestwood Niobrara to increase their common ownership percentage in Crestwood Niobrara to i 50% upon the conversion. |
• | The
Crestwood Niobrara Preferred Units are redeemable by the preferred interest holder starting on December 31, 2023 for an amount equal to the Liquidation Preference (as defined in the Crestwood Niobrara Amended Agreement). If redemption is elected by the preferred interest holder, we have the option to elect to give consideration equal to the Liquidation Preference in either (i) unregistered CEQP common units (subject to a Registration Rights Agreement) with a total value of up to $ i 100
million and/or cash; or (ii) proceeds from a full liquidation of Crestwood Niobrara’s assets and unregistered CEQP common units (subject to a Registration Rights Agreement). |
• | The Crestwood Niobrara Preferred Units are redeemable by us starting on January 1, 2023 for either (i) unregistered CEQP common units (subject to a Registration Rights Agreement) with a total value of up to $ i 100
million and/or cash; or (ii) proceeds from a full liquidation of Crestwood Niobrara’s assets and registered CEQP common units (subject to a Registration Rights Agreement). |
Balance at April 9, 2019(1) | $ | i — | ||
Reclassification
of Series A-2 Preferred Units | i 178.8 | |||
Issuance of Series A-3 Preferred Units | i 235.0 | |||
Distributions
to non-controlling partner | ( i 9.2 | ) | ||
Net income attributable to non-controlling partner(2) | i 20.5 | |||
Balance
at September 30, 2019 | $ | i 425.1 |
(1) | For
further detail related to our non-controlling interest in subsidiary for the period December 31, 2018 to April 8, 2019, see our consolidated statements of partners’ capital. |
(2) | We adjust the carrying amount of our non-controlling interest to its redemption value each period through net income attributable to non-controlling partner. |
CEQP | CMLP | ||||||||||||||
Self-insurance reserves(1) | $ | i 10.5 | $ | i 11.3 | $ | i 9.4 | $ | i 9.6 |
(1) | At
September 30, 2019, CEQP and CMLP classified approximately $ i 7.4 million and $ i 6.3
million, respectively of these reserves as other long-term liabilities on their consolidated balance sheets. |
Three Months Ended | Nine
Months Ended | ||||||||||||||
September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues
at CEQP and CMLP | $ | i 0.3 | $ | i 0.3 | $ | i 2.8 | $ | i 0.9 | |||||||
Costs
of product/services sold at CEQP and CMLP(1) | $ | i 3.8 | $ | i 45.7 | $ | i 39.1 | $ | i 91.0 | |||||||
Operations
and maintenance expenses at CEQP and CMLP(2) | $ | i 6.3 | $ | i 8.2 | $ | i 19.7 | $ | i 22.2 | |||||||
General
and administrative expenses charged by CEQP to CMLP, net(3) | $ | i 7.9 | $ | i 4.8 | $ | i 29.0 | $ | i 15.3 | |||||||
General
and administrative expenses at CEQP charged to (from) Crestwood Holdings, net(4) | $ | i 0.3 | $ | ( i 4.0 | ) | $ | ( i 5.0 | ) | $ | ( i 8.8 | ) |
(1) | Includes
$ i 3.6 million and $ i 12.7
million during the three and nine months ended September 30, 2019 and $ i 16.8 million and $ i 45.1
million during the three and nine months ended September 30, 2018 related to purchases of NGLs from a subsidiary of Crestwood Permian. Includes less than $ i 0.1 million and $ i 23.9
million during the three and nine months ended September 30, 2019 and $ i 28.9 million and $ i 45.9
million during the three and nine months ended September 30, 2018 related to an agency marketing agreement with Ascent Resources - Utica, LLC, an affiliate of Crestwood Holdings. Includes $ i 0.2 million during the both the three and nine months ended
September 30, 2019 related to an agreement with Blue Racer Midstream, LLC, an affiliate of Crestwood Holdings. Includes less than $ i 0.1 million and $ i 2.3
million during the three and nine months ended September 30, 2019 related to purchases of natural gas from a subsidiary of Stagecoach Gas. |
(2) | We have operating agreements with certain of our unconsolidated affiliates pursuant to which we charge them operations and maintenance expenses in accordance with their respective agreements, and these charges are reflected as a reduction of operations and maintenance expenses in our consolidated statements of operations. During the three and nine months ended September 30,
2019, we charged $ i 1.8 million and $ i 5.7
million to Stagecoach Gas, $ i 1.1 million and $ i 3.3
million to Tres Palacios, and $ i 3.4 million and $ i 10.2
million to Crestwood Permian. During the nine months ended September 30, 2019, we charged $ i 0.5 million to Jackalope. During the three and nine months ended September 30,
2018, we charged $ i 1.8 million and $ i 6.0
million to Stagecoach Gas, $ i 0.9 million and $ i 2.9
million to Tres Palacios, $ i 5.1 million and $ i 12.6
million to Crestwood Permian, and $ i 0.4 million and $ i 0.7
million to Jackalope. |
(3) | Includes $ i 8.9 million and $ i 31.8
million unit-based compensation charges allocated from CEQP to CMLP for the three and nine months ended September 30, 2019 and and $ i 5.6 million and $ i 17.7
million for the three and nine months ended September 30, 2018. In addition, includes $ i 1.0 million
and $ i 2.8 million of CMLP’s general and administrative costs allocated to CEQP during the three and nine months ended September 30, 2019
and and $ i 0.8 million and $ i 2.4
million during the three and nine months ended September 30, 2018. |
(4) | Includes $ i 0.4
million and $ i 6.1 million unit-based compensation charges allocated from Crestwood Holdings to CEQP and CMLP during the three and nine months ended September 30, 2019 and $ i 4.8
million and $ i 10.2 million during the three and nine months ended September 30, 2018. |
Accounts receivable at CEQP and CMLP | $ | i 7.7 | $ | i 4.1 | |||
Accounts
payable at CEQP | $ | i 8.1 | $ | i 16.1 | |||
Accounts
payable at CMLP | $ | i 5.6 | $ | i 13.6 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September
30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) | $ | i 33.6 | $ | ( i 5.2 | ) | $ | i 272.7 | $ | i 7.4 | ||||||
Add: | |||||||||||||||
Interest
and debt expense, net | i 30.6 | i 25.1 | i 83.3 | i 73.8 | |||||||||||
Provision
for income taxes | i — | i — | i 0.3 | i 0.2 | |||||||||||
Depreciation,
amortization and accretion | i 51.5 | i 39.2 | i 140.6 | i 128.8 | |||||||||||
EBITDA | $ | i 115.7 | $ | i 59.1 | $ | i 496.9 | $ | i 210.2 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September
30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) | $ | i 31.2 | $ | ( i 7.8 | ) | $ | i 265.7 | $ | i 1.1 | ||||||
Add: | |||||||||||||||
Interest
and debt expense, net | i 30.6 | i 25.1 | i 83.3 | i 73.8 | |||||||||||
Provision
(benefit) for income taxes | ( i 0.1 | ) | i — | i 0.2 | i 0.1 | ||||||||||
Depreciation,
amortization and accretion | i 55.1 | i 42.7 | i 151.2 | i 137.9 | |||||||||||
EBITDA | $ | i 116.8 | $ | i 60.0 | $ | i 500.4 | $ | i 212.9 |
Three
Months Ended September 30, 2019 | |||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | Corporate | Total | |||||||||||||||
Revenues | $ | i 257.8 | $ | i 4.1 | $ | i 561.7 | $ | i — | $ | i 823.6 | |||||||||
Intersegment
revenues | i 33.6 | i 3.5 | ( i 37.1 | ) | i — | i — | |||||||||||||
Costs
of product/services sold | i 164.1 | i 0.1 | i 493.2 | i — | i 657.4 | ||||||||||||||
Operations
and maintenance expense | i 27.5 | i 1.1 | i 7.4 | i — | i 36.0 | ||||||||||||||
General
and administrative expense | i — | i — | i — | i 24.9 | i 24.9 | ||||||||||||||
Loss
on long-lived assets, net | ( i 0.1 | ) | i — | i — | i — | ( i 0.1 | ) | ||||||||||||
Earnings
(loss) from unconsolidated affiliates, net | ( i 0.5 | ) | i 10.9 | i — | i — | i 10.4 | |||||||||||||
Other
income, net | i — | i — | i — | i 0.1 | i 0.1 | ||||||||||||||
EBITDA | $ | i 99.2 | $ | i 17.3 | $ | i 24.0 | $ | ( i 24.8 | ) | $ | i 115.7 | ||||||||
Goodwill | $ | i 126.2 | $ | i — | $ | i 92.7 | $ | i — | $ | i 218.9 | |||||||||
Total
assets | $ | i 3,649.4 | $ | i 987.5 | $ | i 617.3 | $ | i 36.5 | $ | i 5,290.7 |
Three Months Ended September 30, 2018 | |||||||||||||||||||
Gathering
and Processing | Storage and Transportation | Marketing, Supply and Logistics | Corporate | Total | |||||||||||||||
Revenues | $ | i 242.3 | $ | i 3.5 | $ | i 684.4 | $ | i — | $ | i 930.2 | |||||||||
Intersegment
revenues | i 54.8 | i 2.6 | ( i 57.4 | ) | i — | i — | |||||||||||||
Costs
of product/services sold | i 205.1 | ( i 0.1 | ) | i 622.5 | i — | i 827.5 | |||||||||||||
Operations
and maintenance expense | i 17.2 | i 0.7 | i 11.7 | i — | i 29.6 | ||||||||||||||
General
and administrative expense | i — | i — | i — | i 25.5 | i 25.5 | ||||||||||||||
Gain
(loss) on long-lived assets | ( i 2.2 | ) | i — | ( i 2.5 | ) | i 1.1 | ( i 3.6 | ) | |||||||||||
Earnings
from unconsolidated affiliates, net | i 5.6 | i 9.5 | i — | i — | i 15.1 | ||||||||||||||
EBITDA | $ | i 78.2 | $ | i 15.0 | $ | ( i 9.7 | ) | $ | ( i 24.4 | ) | $ | i 59.1 |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | Corporate | Total | |||||||||||||||
Revenues | $ | i 639.8 | $ | i 16.8 | $ | i 1,685.6 | $ | i — | $ | i 2,342.2 | |||||||||
Intersegment
revenues | i 111.8 | i 10.3 | ( i 122.1 | ) | i — | i — | |||||||||||||
Costs
of product/services sold | i 411.0 | i 0.1 | i 1,479.1 | i — | i 1,890.2 | ||||||||||||||
Operations
and maintenance expense | i 70.2 | i 3.0 | i 26.1 | i — | i 99.3 | ||||||||||||||
General
and administrative expense | i — | i — | i — | i 84.4 | i 84.4 | ||||||||||||||
Gain
(loss) on long-lived assets, net | ( i 2.1 | ) | i — | ( i 0.2 | ) | i 0.2 | ( i 2.1 | ) | |||||||||||
Gain
on acquisition | i 209.4 | i — | i — | i — | i 209.4 | ||||||||||||||
Earnings
(loss) from unconsolidated affiliates, net | ( i 3.5 | ) | i 24.5 | i — | i — | i 21.0 | |||||||||||||
Other
income, net | i — | i — | i — | i 0.3 | i 0.3 | ||||||||||||||
EBITDA | $ | i 474.2 | $ | i 48.5 | $ | i 58.1 | $ | ( i 83.9 | ) | $ | i 496.9 | ||||||||
Goodwill | $ | i 126.2 | $ | i — | $ | i 92.7 | $ | i — | $ | i 218.9 | |||||||||
Total
assets | $ | i 3,649.4 | $ | i 987.5 | $ | i 617.3 | $ | i 36.5 | $ | i 5,290.7 |
Nine
Months Ended September 30, 2018 | |||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | Corporate | Total | |||||||||||||||
Revenues | $ | i 838.1 | $ | i 12.8 | $ | i 2,034.8 | $ | i — | $ | i 2,885.7 | |||||||||
Intersegment
revenues | i 141.5 | i 7.1 | ( i 148.6 | ) | i — | i — | |||||||||||||
Costs
of product/services sold | i 701.6 | i 0.1 | i 1,817.0 | i — | i 2,518.7 | ||||||||||||||
Operations
and maintenance expense | i 52.7 | i 2.3 | i 41.0 | i — | i 96.0 | ||||||||||||||
General
and administrative expense | i — | i — | i — | i 72.8 | i 72.8 | ||||||||||||||
Gain
(loss) on long-lived assets | ( i 2.1 | ) | i — | ( i 26.7 | ) | i 1.1 | ( i 27.7 | ) | |||||||||||
Earnings
from unconsolidated affiliates, net | i 15.8 | i 23.7 | i — | i — | i 39.5 | ||||||||||||||
Other
income, net | i — | i — | i — | i 0.2 | i 0.2 | ||||||||||||||
EBITDA | $ | i 239.0 | $ | i 41.2 | $ | i 1.5 | $ | ( i 71.5 | ) | $ | i 210.2 |
Three
Months Ended September 30, 2019 | |||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | Corporate | Total | |||||||||||||||
Revenues | $ | i 257.8 | $ | i 4.1 | $ | i 561.7 | $ | i — | $ | i 823.6 | |||||||||
Intersegment
revenues | i 33.6 | i 3.5 | ( i 37.1 | ) | i — | i — | |||||||||||||
Costs
of product/services sold | i 164.1 | i 0.1 | i 493.2 | i — | i 657.4 | ||||||||||||||
Operations
and maintenance expense | i 27.5 | i 1.1 | i 7.4 | i — | i 36.0 | ||||||||||||||
General
and administrative expense | i — | i — | i — | i 23.7 | i 23.7 | ||||||||||||||
Loss
on long-lived assets, net | ( i 0.1 | ) | i — | i — | i — | ( i 0.1 | ) | ||||||||||||
Earnings
(loss) from unconsolidated affiliates, net | ( i 0.5 | ) | i 10.9 | i — | i — | i 10.4 | |||||||||||||
EBITDA | $ | i 99.2 | $ | i 17.3 | $ | i 24.0 | $ | ( i 23.7 | ) | $ | i 116.8 | ||||||||
Goodwill | $ | i 126.2 | $ | i — | $ | i 92.7 | $ | i — | $ | i 218.9 | |||||||||
Total
assets | $ | i 3,812.4 | $ | i 987.5 | $ | i 617.3 | $ | i 30.9 | $ | i 5,448.1 |
Three
Months Ended September 30, 2018 | |||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | Corporate | Total | |||||||||||||||
Revenues | $ | i 242.3 | $ | i 3.5 | $ | i 684.4 | $ | i — | $ | i 930.2 | |||||||||
Intersegment
revenues | i 54.8 | i 2.6 | ( i 57.4 | ) | i — | i — | |||||||||||||
Costs
of product/services sold | i 205.1 | ( i 0.1 | ) | i 622.5 | i — | i 827.5 | |||||||||||||
Operations
and maintenance expense | i 17.2 | i 0.7 | i 11.7 | i — | i 29.6 | ||||||||||||||
General
and administrative expense | i — | i — | i — | i 24.6 | i 24.6 | ||||||||||||||
Gain
(loss) on long-lived assets | ( i 2.2 | ) | i — | ( i 2.5 | ) | i 1.1 | ( i 3.6 | ) | |||||||||||
Earnings
from unconsolidated affiliates, net | i 5.6 | i 9.5 | i — | i — | i 15.1 | ||||||||||||||
EBITDA | $ | i 78.2 | $ | i 15.0 | $ | ( i 9.7 | ) | $ | ( i 23.5 | ) | $ | i 60.0 |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | Corporate | Total | |||||||||||||||
Revenues | $ | i 639.8 | $ | i 16.8 | $ | i 1,685.6 | $ | i — | $ | i 2,342.2 | |||||||||
Intersegment
revenues | i 111.8 | i 10.3 | ( i 122.1 | ) | i — | i — | |||||||||||||
Costs
of product/services sold | i 411.0 | i 0.1 | i 1,479.1 | i — | i 1,890.2 | ||||||||||||||
Operations
and maintenance expense | i 70.2 | i 3.0 | i 26.1 | i — | i 99.3 | ||||||||||||||
General
and administrative expense | i — | i — | i — | i 80.6 | i 80.6 | ||||||||||||||
Gain
(loss) on long-lived assets, net | ( i 2.1 | ) | i — | ( i 0.2 | ) | i 0.2 | ( i 2.1 | ) | |||||||||||
Gain
on acquisition | i 209.4 | i — | i — | i — | i 209.4 | ||||||||||||||
Earnings
(loss) from unconsolidated affiliates, net | ( i 3.5 | ) | i 24.5 | i — | i — | i 21.0 | |||||||||||||
EBITDA | $ | i 474.2 | $ | i 48.5 | $ | i 58.1 | $ | ( i 80.4 | ) | $ | i 500.4 | ||||||||
Goodwill | $ | i 126.2 | $ | i — | $ | i 92.7 | $ | i — | $ | i 218.9 | |||||||||
Total
assets | $ | i 3,812.4 | $ | i 987.5 | $ | i 617.3 | $ | i 30.9 | $ | i 5,448.1 |
Nine Months Ended September 30, 2018 | |||||||||||||||||||
Gathering
and Processing | Storage and Transportation | Marketing, Supply and Logistics | Corporate | Total | |||||||||||||||
Revenues | $ | i 838.1 | $ | i 12.8 | $ | i 2,034.8 | $ | i — | $ | i 2,885.7 | |||||||||
Intersegment
revenues | i 141.5 | i 7.1 | ( i 148.6 | ) | i — | i — | |||||||||||||
Costs
of product/services sold | i 701.6 | i 0.1 | i 1,817.0 | i — | i 2,518.7 | ||||||||||||||
Operations
and maintenance expense | i 52.7 | i 2.3 | i 41.0 | i — | i 96.0 | ||||||||||||||
General
and administrative expense | i — | i — | i — | i 69.9 | i 69.9 | ||||||||||||||
Gain
(loss) on long-lived assets | ( i 2.1 | ) | i — | ( i 26.7 | ) | i 1.1 | ( i 27.7 | ) | |||||||||||
Earnings
from unconsolidated affiliates, net | i 15.8 | i 23.7 | i — | i — | i 39.5 | ||||||||||||||
EBITDA | $ | i 239.0 | $ | i 41.2 | $ | i 1.5 | $ | ( i 68.8 | ) | $ | i 212.9 |
Contract Assets (Non-current) | $ | i 0.8 | $ | i 1.0 | ||||
Contract
Liabilities (Current)(1) | $ | i 10.3 | $ | i 12.0 | ||||
Contract
Liabilities (Non-current)(1) | $ | i 112.8 | $ | i 65.4 |
(1) | During
the three and nine months ended September 30, 2019, we recognized revenues of approximately $ i 2.6 million and $ i 8.4
million that were previously included in contract liabilities (current) at December 31, 2018. The remaining change in our contract liabilities during the three and nine months ended September 30, 2019, partially related to approximately $ i 21.5
million of deferred revenues recorded in the purchase price allocation for the Jackalope Acquisition described in more detail in Note 3, and the remainder relates primarily to capital reimbursements associated with our revenue contracts and revenue deferrals associated with our contracts with increasing (decreasing) rates. |
Remainder of 2019 | $ | i 25.1 | |
2020 | i 97.7 | ||
2021 | i 86.1 | ||
2022 | i 79.2 | ||
2023 | i 7.3 | ||
Thereafter | i 3.3 | ||
Total | $ | i 298.7 |
Three
Months Ended September 30, 2019 | |||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | Intersegment Elimination | Total | |||||||||||||||
Revenues: | |||||||||||||||||||
Topic
606 revenues | |||||||||||||||||||
Gathering | |||||||||||||||||||
Natural
gas | $ | i 43.7 | $ | i — | $ | i — | $ | i — | $ | i 43.7 | |||||||||
Crude
oil | i 20.1 | i — | i — | i — | i 20.1 | ||||||||||||||
Water | i 21.3 | i — | i — | i — | i 21.3 | ||||||||||||||
Processing | |||||||||||||||||||
Natural
gas | i 8.9 | i — | i — | i — | i 8.9 | ||||||||||||||
Compression | |||||||||||||||||||
Natural
gas | i 6.4 | i — | i — | i — | i 6.4 | ||||||||||||||
Storage | |||||||||||||||||||
Crude
oil | i 0.4 | i 1.5 | i — | ( i 0.5 | ) | i 1.4 | |||||||||||||
NGLs | i — | i — | i 1.6 | i — | i 1.6 | ||||||||||||||
Pipeline | |||||||||||||||||||
Crude
oil | i — | i 2.6 | i — | ( i 1.0 | ) | i 1.6 | |||||||||||||
Transportation | |||||||||||||||||||
Crude
oil | i 2.2 | i — | i 1.4 | ( i 0.1 | ) | i 3.5 | |||||||||||||
NGLs | i — | i — | i 2.3 | i — | i 2.3 | ||||||||||||||
Rail
Loading | |||||||||||||||||||
Crude oil | i — | i 2.4 | i — | ( i 1.2 | ) | i 1.2 | |||||||||||||
Product
Sales | |||||||||||||||||||
Natural gas | i 10.3 | i — | i 13.8 | ( i 6.5 | ) | i 17.6 | |||||||||||||
Crude
oil | i 170.0 | i — | i 383.6 | ( i 24.1 | ) | i 529.5 | |||||||||||||
NGLs | i 8.1 | i — | i 119.2 | ( i 2.8 | ) | i 124.5 | |||||||||||||
Other | i — | i 1.1 | i 0.4 | ( i 0.9 | ) | i 0.6 | |||||||||||||
Total
Topic 606 revenues | i 291.4 | i 7.6 | i 522.3 | ( i 37.1 | ) | i 784.2 | |||||||||||||
Non-Topic
606 revenues(1) | i — | i — | i 39.4 | i — | i 39.4 | ||||||||||||||
Total
revenues | $ | i 291.4 | $ | i 7.6 | $ | i 561.7 | $ | ( i 37.1 | ) | $ | i 823.6 |
(1) | Represents
revenues primarily related to our commodity-based derivatives. See Note 6 for additional information related to our price risk management activities. |
Three
Months Ended September 30, 2018 | |||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | Intersegment Elimination | Total | |||||||||||||||
Revenues: | |||||||||||||||||||
Topic
606 revenues | |||||||||||||||||||
Gathering | |||||||||||||||||||
Natural
gas | $ | i 32.9 | $ | i — | $ | i — | $ | i — | $ | i 32.9 | |||||||||
Crude
oil | i 9.4 | i — | i — | i — | i 9.4 | ||||||||||||||
Water | i 15.5 | i — | i — | i — | i 15.5 | ||||||||||||||
Processing | |||||||||||||||||||
Natural
gas | i 2.7 | i — | i — | i — | i 2.7 | ||||||||||||||
NGLs | i — | i — | i 2.0 | i — | i 2.0 | ||||||||||||||
Compression | |||||||||||||||||||
Natural
gas | i 7.0 | i — | i — | i — | i 7.0 | ||||||||||||||
Storage | |||||||||||||||||||
Crude
oil | i 0.4 | i 0.8 | i — | ( i 0.4 | ) | i 0.8 | |||||||||||||
NGLs | i — | i — | i 1.9 | i — | i 1.9 | ||||||||||||||
Pipeline | |||||||||||||||||||
Crude
oil | i — | i 2.1 | i — | ( i 0.6 | ) | i 1.5 | |||||||||||||
Transportation | |||||||||||||||||||
Crude
oil | i 0.9 | i — | i 1.5 | i — | i 2.4 | ||||||||||||||
NGLs | i — | i — | i 6.6 | i — | i 6.6 | ||||||||||||||
Rail
Loading | |||||||||||||||||||
Crude oil | i — | i 2.8 | i — | ( i 1.3 | ) | i 1.5 | |||||||||||||
NGLs | i — | i — | i 0.9 | i — | i 0.9 | ||||||||||||||
Product
Sales | |||||||||||||||||||
Natural gas | i 13.4 | i — | i 31.7 | ( i 3.9 | ) | i 41.2 | |||||||||||||
Crude
oil | i 190.3 | i — | i 268.8 | ( i 43.1 | ) | i 416.0 | |||||||||||||
NGLs | i 24.6 | i — | i 291.1 | ( i 7.8 | ) | i 307.9 | |||||||||||||
Other | i — | i 0.4 | i — | ( i 0.3 | ) | i 0.1 | |||||||||||||
Total
Topic 606 revenues | i 297.1 | i 6.1 | i 604.5 | ( i 57.4 | ) | i 850.3 | |||||||||||||
Non-Topic
606 revenues(1) | i — | i — | i 79.9 | i — | i 79.9 | ||||||||||||||
Total
revenues | $ | i 297.1 | $ | i 6.1 | $ | i 684.4 | $ | ( i 57.4 | ) | $ | i 930.2 |
(1) | Represents
revenues related to our commodity-based derivatives. See Note 6 for additional information related to our price risk management activities. |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | Intersegment Elimination | Total | |||||||||||||||
Revenues: | |||||||||||||||||||
Topic
606 revenues | |||||||||||||||||||
Gathering | |||||||||||||||||||
Natural
gas | $ | i 116.8 | $ | i — | $ | i — | $ | i — | $ | i 116.8 | |||||||||
Crude
oil | i 50.5 | i — | i — | i — | i 50.5 | ||||||||||||||
Water | i 57.1 | i — | i — | i — | i 57.1 | ||||||||||||||
Processing | |||||||||||||||||||
Natural
gas | i 19.5 | i — | i — | i — | i 19.5 | ||||||||||||||
Compression | |||||||||||||||||||
Natural
gas | i 18.6 | i — | i — | i — | i 18.6 | ||||||||||||||
Storage | |||||||||||||||||||
Crude
oil | i 1.4 | i 4.4 | i — | ( i 1.7 | ) | i 4.1 | |||||||||||||
NGLs | i — | i — | i 4.2 | i — | i 4.2 | ||||||||||||||
Pipeline | |||||||||||||||||||
Crude
oil | i — | i 5.8 | i — | ( i 2.2 | ) | i 3.6 | |||||||||||||
Transportation | |||||||||||||||||||
Crude
oil | i 5.5 | i — | i 4.4 | ( i 0.1 | ) | i 9.8 | |||||||||||||
NGLs | i — | i — | i 8.5 | i — | i 8.5 | ||||||||||||||
Rail
Loading | |||||||||||||||||||
Crude oil | i — | i 13.5 | i — | ( i 4.0 | ) | i 9.5 | |||||||||||||
Product
Sales | |||||||||||||||||||
Natural gas | i 40.0 | i — | i 44.0 | ( i 17.9 | ) | i 66.1 | |||||||||||||
Crude
oil | i 411.8 | i — | i 965.1 | ( i 83.4 | ) | i 1,293.5 | |||||||||||||
NGLs | i 30.4 | i — | i 474.6 | ( i 10.1 | ) | i 494.9 | |||||||||||||
Other | i — | i 3.4 | i 0.7 | ( i 2.7 | ) | i 1.4 | |||||||||||||
Total
Topic 606 revenues | i 751.6 | i 27.1 | i 1,501.5 | ( i 122.1 | ) | i 2,158.1 | |||||||||||||
Non-Topic
606 revenues(1) | i — | i — | i 184.1 | i — | i 184.1 | ||||||||||||||
Total
revenues | $ | i 751.6 | $ | i 27.1 | $ | i 1,685.6 | $ | ( i 122.1 | ) | $ | i 2,342.2 |
(1) | Represents
revenues primarily related to our commodity-based derivatives. See Note 6 for additional information related to our price risk management activities. |
Nine
Months Ended September 30, 2018 | |||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | Intersegment Elimination | Total | |||||||||||||||
Revenues: | |||||||||||||||||||
Topic
606 revenues | |||||||||||||||||||
Gathering | |||||||||||||||||||
Natural
gas | $ | i 102.2 | $ | i — | $ | i — | $ | i — | $ | i 102.2 | |||||||||
Crude
oil | i 28.0 | i — | i — | i — | i 28.0 | ||||||||||||||
Water | i 41.3 | i — | i — | i — | i 41.3 | ||||||||||||||
Processing | |||||||||||||||||||
Natural
gas | i 8.1 | i — | i — | i — | i 8.1 | ||||||||||||||
NGLs | i — | i — | i 6.1 | i — | i 6.1 | ||||||||||||||
Compression | |||||||||||||||||||
Natural
gas | i 22.5 | i — | i — | i — | i 22.5 | ||||||||||||||
Storage | |||||||||||||||||||
Crude
oil | i 1.3 | i 2.6 | i — | ( i 0.9 | ) | i 3.0 | |||||||||||||
NGLs | i — | i — | i 7.4 | i — | i 7.4 | ||||||||||||||
Pipeline | |||||||||||||||||||
Crude
oil | i — | i 4.7 | i — | ( i 1.6 | ) | i 3.1 | |||||||||||||
Transportation | |||||||||||||||||||
Crude
oil | i 2.1 | i — | i 4.4 | i — | i 6.5 | ||||||||||||||
NGLs | i — | i — | i 26.0 | i — | i 26.0 | ||||||||||||||
Water | i — | i — | i 0.2 | i — | i 0.2 | ||||||||||||||
Rail
Loading | |||||||||||||||||||
Crude oil | i — | i 11.5 | i — | ( i 3.8 | ) | i 7.7 | |||||||||||||
NGLs | i — | i — | i 3.1 | i — | i 3.1 | ||||||||||||||
Product
Sales | |||||||||||||||||||
Natural gas | i 38.7 | i — | i 48.4 | ( i 10.6 | ) | i 76.5 | |||||||||||||
Crude
oil | i 667.9 | i — | i 725.4 | ( i 112.4 | ) | i 1280.9 | |||||||||||||
NGLs | i 67.5 | i — | i 1003.1 | ( i 18.5 | ) | i 1052.1 | |||||||||||||
Other | i — | i 1.1 | i — | ( i 0.8 | ) | i 0.3 | |||||||||||||
Total
Topic 606 revenues | i 979.6 | i 19.9 | i 1,824.1 | ( i 148.6 | ) | i 2,675.0 | |||||||||||||
Non-Topic
606 revenues(1) | i — | i — | i 210.7 | i — | i 210.7 | ||||||||||||||
Total
revenues | $ | i 979.6 | $ | i 19.9 | $ | i 2,034.8 | $ | ( i 148.6 | ) | $ | i 2,885.7 |
(1) | Represents
revenues related to our commodity-based derivatives. See Note 6 for additional information related to our price risk management activities. |
Crestwood
Midstream Partners LP | |||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current
assets: | |||||||||||||||||||
Cash | $ | i 0.5 | $ | i — | $ | i 0.4 | $ | i — | $ | i 0.9 | |||||||||
Accounts
receivable | i — | i 233.6 | i 24.4 | i — | i 258.0 | ||||||||||||||
Inventory | i — | i 43.5 | i — | i — | i 43.5 | ||||||||||||||
Other
current assets | i — | i 65.5 | i 0.3 | i — | i 65.8 | ||||||||||||||
Total
current assets | i 0.5 | i 342.6 | i 25.1 | i — | i 368.2 | ||||||||||||||
Property,
plant and equipment, net | i — | i 2,323.1 | i 677.8 | i — | i 3,000.9 | ||||||||||||||
Goodwill
and intangible assets, net | i — | i 661.1 | i 377.7 | i — | i 1,038.8 | ||||||||||||||
Operating
lease right-of-use assets, net | i — | i 55.7 | i 2.9 | i — | i 58.6 | ||||||||||||||
Investment
in consolidated affiliates | i 4,439.5 | i — | i — | ( i 4,439.5 | ) | i — | |||||||||||||
Investment
in unconsolidated affiliates | i — | i — | i 979.6 | i — | i 979.6 | ||||||||||||||
Other
non-current assets | i — | i 2.0 | i — | i — | i 2.0 | ||||||||||||||
Total
assets | $ | i 4,440.0 | $ | i 3,384.5 | $ | i 2,063.1 | $ | ( i 4,439.5 | ) | $ | i 5,448.1 | ||||||||
Liabilities
and capital | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts
payable | $ | i — | $ | i 175.7 | $ | i 20.1 | $ | i — | $ | i 195.8 | |||||||||
Other
current liabilities | i 54.0 | i 112.0 | i 7.1 | i — | i 173.1 | ||||||||||||||
Total
current liabilities | i 54.0 | i 287.7 | i 27.2 | i — | i 368.9 | ||||||||||||||
Long-term
liabilities: | |||||||||||||||||||
Long-term debt, less current portion | i 2,267.2 | i — | i — | i — | i 2,267.2 | ||||||||||||||
Other
long-term liabilities | i — | i 173.6 | i 93.8 | i — | i 267.4 | ||||||||||||||
Deferred
income taxes | i — | i 0.7 | i — | i — | i 0.7 | ||||||||||||||
Total
liabilities | i 2,321.2 | i 462.0 | i 121.0 | i — | i 2,904.2 | ||||||||||||||
Interest
of non-controlling partner in subsidiary | i — | i — | i 425.1 | i — | i 425.1 | ||||||||||||||
Partners’
capital | i 2,118.8 | i 2,922.5 | i 1,517.0 | ( i 4,439.5 | ) | i 2,118.8 | |||||||||||||
Total
liabilities and capital | $ | i 4,440.0 | $ | i 3,384.5 | $ | i 2,063.1 | $ | ( i 4,439.5 | ) | $ | i 5,448.1 |
Crestwood Midstream Partners LP | |||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||
(in
millions) | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current
assets: | |||||||||||||||||||
Cash | $ | i 0.2 | $ | i — | $ | i — | $ | i — | $ | i 0.2 | |||||||||
Restricted
cash | i 16.3 | i — | i — | i — | i 16.3 | ||||||||||||||
Accounts
receivable | i — | i 246.3 | i 19.9 | ( i 16.3 | ) | i 249.9 | |||||||||||||
Inventory | i — | i 64.6 | i — | i — | i 64.6 | ||||||||||||||
Other
current assets | i — | i 46.0 | i — | i — | i 46.0 | ||||||||||||||
Total
current assets | i 16.5 | i 356.9 | i 19.9 | ( i 16.3 | ) | i 377.0 | |||||||||||||
Property,
plant and equipment, net | i — | i 2,202.3 | i — | i — | i 2,202.3 | ||||||||||||||
Goodwill
and intangible assets, net | i — | i 692.4 | i — | i — | i 692.4 | ||||||||||||||
Investment
in consolidated affiliates | i 3,800.4 | i — | i — | ( i 3,800.4 | ) | i — | |||||||||||||
Investment
in unconsolidated affiliates | i — | i — | i 1,188.2 | i — | i 1,188.2 | ||||||||||||||
Other
non-current assets | i — | i 2.1 | i — | i — | i 2.1 | ||||||||||||||
Total
assets | $ | i 3,816.9 | $ | i 3,253.7 | $ | i 1,208.1 | $ | ( i 3,816.7 | ) | $ | i 4,462.0 | ||||||||
Liabilities
and capital | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts
payable | $ | i 16.3 | $ | i 210.5 | $ | i — | $ | ( i 16.3 | ) | $ | i 210.5 | ||||||||
Other
current liabilities | i 20.0 | i 81.8 | i 16.2 | i — | i 118.0 | ||||||||||||||
Total
current liabilities | i 36.3 | i 292.3 | i 16.2 | ( i 16.3 | ) | i 328.5 | |||||||||||||
Long-term
liabilities: | |||||||||||||||||||
Long-term debt, less current portion | i 1,752.4 | i — | i — | i — | i 1,752.4 | ||||||||||||||
Other
long-term liabilities | i — | i 114.0 | i 57.0 | i — | i 171.0 | ||||||||||||||
Deferred
income taxes | i — | i 0.6 | i — | i — | i 0.6 | ||||||||||||||
Total
liabilities | i 1,788.7 | i 406.9 | i 73.2 | ( i 16.3 | ) | i 2,252.5 | |||||||||||||
Interest
of non-controlling partner in subsidiary | i — | i — | i 181.3 | i — | i 181.3 | ||||||||||||||
Partners’
capital | i 2,028.2 | i 2,846.8 | i 953.6 | ( i 3,800.4 | ) | i 2,028.2 | |||||||||||||
Total
partners’ capital | i 2,028.2 | i 2,846.8 | i 1,134.9 | ( i 3,800.4 | ) | i 2,209.5 | |||||||||||||
Total
liabilities and capital | $ | i 3,816.9 | $ | i 3,253.7 | $ | i 1,208.1 | $ | ( i 3,816.7 | ) | $ | i 4,462.0 |
Crestwood
Midstream Partners LP | |||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues | $ | i — | $ | i 801.1 | $ | i 23.2 | $ | ( i 0.7 | ) | $ | i 823.6 | ||||||||
Costs
of product/services sold | i — | i 657.4 | i 0.7 | ( i 0.7 | ) | i 657.4 | |||||||||||||
Operating
expenses and other: | |||||||||||||||||||
Operations and maintenance | i — | i 30.8 | i 5.2 | i — | i 36.0 | ||||||||||||||
General
and administrative | i 10.7 | i 13.0 | i — | i — | i 23.7 | ||||||||||||||
Depreciation,
amortization and accretion | i — | i 45.5 | i 9.6 | i — | i 55.1 | ||||||||||||||
Loss
on long-lived assets, net | i — | i 0.1 | i — | i — | i 0.1 | ||||||||||||||
i 10.7 | i 89.4 | i 14.8 | i — | i 114.9 | |||||||||||||||
Operating
income (loss) | ( i 10.7 | ) | i 54.3 | i 7.7 | i — | i 51.3 | |||||||||||||
Earnings
from unconsolidated affiliates, net | i — | i — | i 10.4 | i — | i 10.4 | ||||||||||||||
Interest
and debt income (expense), net | ( i 30.7 | ) | i — | i 0.1 | i — | ( i 30.6 | ) | ||||||||||||
Equity
in net income (loss) of subsidiaries | i 62.7 | i — | i — | ( i 62.7 | ) | i — | |||||||||||||
Income
(loss) before income taxes | i 21.3 | i 54.3 | i 18.2 | ( i 62.7 | ) | i 31.1 | |||||||||||||
Benefit
for income taxes | i — | i 0.1 | i — | i — | i 0.1 | ||||||||||||||
Net
income (loss) | i 21.3 | i 54.4 | i 18.2 | ( i 62.7 | ) | i 31.2 | |||||||||||||
Net
income attributable to non-controlling partner in subsidiary | i — | i — | i 9.9 | i — | i 9.9 | ||||||||||||||
Net
income (loss) attributable to Crestwood Midstream Partners LP | $ | i 21.3 | $ | i 54.4 | $ | i 8.3 | $ | ( i 62.7 | ) | $ | i 21.3 |
Crestwood Midstream Partners LP | |||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||
Three Months Ended September
30, 2018 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues | $ | i — | $ | i 930.2 | $ | i — | $ | i — | $ | i 930.2 | |||||||||
Costs
of product/services sold | i — | i 827.5 | i — | i — | i 827.5 | ||||||||||||||
Operating
expenses: | |||||||||||||||||||
Operations and maintenance | i — | i 29.6 | i — | i — | i 29.6 | ||||||||||||||
General
and administrative | i 14.3 | i 10.3 | i — | i — | i 24.6 | ||||||||||||||
Depreciation,
amortization and accretion | i — | i 42.7 | i — | i — | i 42.7 | ||||||||||||||
Loss
on long-lived assets, net | i — | i 3.6 | i — | i — | i 3.6 | ||||||||||||||
i 14.3 | i 86.2 | i — | i — | i 100.5 | |||||||||||||||
Operating
income (loss) | ( i 14.3 | ) | i 16.5 | i — | i — | i 2.2 | |||||||||||||
Earnings
from unconsolidated affiliates, net | i — | i — | i 15.1 | i — | i 15.1 | ||||||||||||||
Interest
and debt expense, net | ( i 25.1 | ) | i — | i — | i — | ( i 25.1 | ) | ||||||||||||
Equity
in net income (loss) of subsidiaries | i 27.5 | i — | i — | ( i 27.5 | ) | i — | |||||||||||||
Net
income (loss) | ( i 11.9 | ) | i 16.5 | i 15.1 | ( i 27.5 | ) | ( i 7.8 | ) | |||||||||||
Net
income attributable to non-controlling partner in subsidiary | i — | i — | i 4.1 | i — | i 4.1 | ||||||||||||||
Net
income (loss) attributable to Crestwood Midstream Partners LP | $ | ( i 11.9 | ) | $ | i 16.5 | $ | i 11.0 | $ | ( i 27.5 | ) | $ | ( i 11.9 | ) |
Crestwood Midstream Partners LP | |||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||
Nine Months Ended September
30, 2019 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues | $ | i — | $ | i 2,299.5 | $ | i 43.4 | $ | ( i 0.7 | ) | $ | i 2,342.2 | ||||||||
Costs
of product/services sold | i — | i 1,890.2 | i 0.7 | ( i 0.7 | ) | i 1,890.2 | |||||||||||||
Operating
expenses and other: | |||||||||||||||||||
Operations and maintenance | i — | i 86.9 | i 12.4 | i — | i 99.3 | ||||||||||||||
General
and administrative | i 39.1 | i 41.5 | i — | i — | i 80.6 | ||||||||||||||
Depreciation,
amortization and accretion | i — | i 131.9 | i 19.3 | i — | i 151.2 | ||||||||||||||
Loss
on long-lived assets, net | i — | i 2.1 | i — | i — | i 2.1 | ||||||||||||||
Gain
on acquisition | i — | i — | ( i 209.4 | ) | i — | ( i 209.4 | ) | ||||||||||||
i 39.1 | i 262.4 | ( i 177.7 | ) | i — | i 123.8 | ||||||||||||||
Operating
income (loss) | ( i 39.1 | ) | i 146.9 | i 220.4 | i — | i 328.2 | |||||||||||||
Earnings
from unconsolidated affiliates, net | i — | i — | i 21.0 | i — | i 21.0 | ||||||||||||||
Interest
and debt income (expense), net | ( i 83.4 | ) | i — | i 0.1 | i — | ( i 83.3 | ) | ||||||||||||
Equity
in net income (loss) of subsidiaries | i 363.7 | i — | i — | ( i 363.7 | ) | i — | |||||||||||||
Income
(loss) before income taxes | i 241.2 | i 146.9 | i 241.5 | ( i 363.7 | ) | i 265.9 | |||||||||||||
Provision
for income taxes | i — | ( i 0.2 | ) | i — | i — | ( i 0.2 | ) | ||||||||||||
Net
income (loss) | i 241.2 | i 146.7 | i 241.5 | ( i 363.7 | ) | i 265.7 | |||||||||||||
Net
income attributable to non-controlling partner in subsidiary | i — | i — | i 24.5 | i — | i 24.5 | ||||||||||||||
Net
income (loss) attributable to Crestwood Midstream Partners LP | $ | i 241.2 | $ | i 146.7 | $ | i 217.0 | $ | ( i 363.7 | ) | $ | i 241.2 |
Crestwood Midstream Partners LP | |||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||
Nine Months Ended September
30, 2018 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues | $ | i — | $ | i 2,885.7 | $ | i — | $ | i — | $ | i 2,885.7 | |||||||||
Costs
of product/services sold | i — | i 2,518.7 | i — | i — | i 2,518.7 | ||||||||||||||
Operating
expenses: | |||||||||||||||||||
Operations and maintenance | i — | i 96.0 | i — | i — | i 96.0 | ||||||||||||||
General
and administrative | i 42.0 | i 27.9 | i — | i — | i 69.9 | ||||||||||||||
Depreciation,
amortization and accretion | i — | i 137.9 | i — | i — | i 137.9 | ||||||||||||||
Loss
on long-lived assets, net | i — | i 27.7 | i — | i — | i 27.7 | ||||||||||||||
i 42.0 | i 289.5 | i — | i — | i 331.5 | |||||||||||||||
Operating
income (loss) | ( i 42.0 | ) | i 77.5 | i — | i — | i 35.5 | |||||||||||||
Earnings
from unconsolidated affiliates, net | i — | i — | i 39.5 | i — | i 39.5 | ||||||||||||||
Interest
and debt expense, net | ( i 73.8 | ) | i — | i — | i — | ( i 73.8 | ) | ||||||||||||
Equity
in net income (loss) of subsidiaries | i 104.8 | i — | i — | ( i 104.8 | ) | i — | |||||||||||||
Income
(loss) before income taxes | ( i 11.0 | ) | i 77.5 | i 39.5 | ( i 104.8 | ) | i 1.2 | ||||||||||||
Provision
for income taxes | i — | ( i 0.1 | ) | i — | i — | ( i 0.1 | ) | ||||||||||||
Net
income (loss) | ( i 11.0 | ) | i 77.4 | i 39.5 | ( i 104.8 | ) | i 1.1 | ||||||||||||
Net
income attributable to non-controlling partner in subsidiary | i — | i — | i 12.1 | i — | i 12.1 | ||||||||||||||
Net
income (loss) attributable to Crestwood Midstream Partners LP | $ | ( i 11.0 | ) | $ | i 77.4 | $ | i 27.4 | $ | ( i 104.8 | ) | $ | ( i 11.0 | ) |
Crestwood
Midstream Partners LP | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash
flows from operating activities | $ | ( i 100.2 | ) | $ | i 322.1 | $ | i 59.1 | $ | i — | $ | i 281.0 | ||||||||
Cash
flows from investing activities: | |||||||||||||||||||
Acquisition, net of cash acquired | i — | i — | ( i 462.1 | ) | i — | ( i 462.1 | ) | ||||||||||||
Purchases
of property, plant and equipment | i — | ( i 209.6 | ) | ( i 137.4 | ) | i — | ( i 347.0 | ) | |||||||||||
Investment
in unconsolidated affiliates | i — | i — | ( i 52.3 | ) | i — | ( i 52.3 | ) | ||||||||||||
Capital
distributions from unconsolidated affiliates | i — | i — | i 27.3 | i — | i 27.3 | ||||||||||||||
Capital
contributions to consolidated affiliates | ( i 239.6 | ) | i — | i — | i 239.6 | i — | |||||||||||||
Other | i — | ( i 0.4 | ) | i — | i — | ( i 0.4 | ) | ||||||||||||
Net
cash provided by (used in) investing activities | ( i 239.6 | ) | ( i 210.0 | ) | ( i 624.5 | ) | i 239.6 | ( i 834.5 | ) | ||||||||||
Cash
flows from financing activities: | |||||||||||||||||||
Proceeds from the issuance of long-term debt | i 1,993.7 | i — | i — | i — | i 1,993.7 | ||||||||||||||
Payments
on long-term debt | ( i 1,474.3 | ) | ( i 0.9 | ) | i — | i — | ( i 1,475.2 | ) | |||||||||||
Payments
on finance leases | i — | ( i 2.6 | ) | i — | i — | ( i 2.6 | ) | ||||||||||||
Payments
for debt-related deferred costs | ( i 9.0 | ) | i — | i — | i — | ( i 9.0 | ) | ||||||||||||
Net
proceeds from the issuance of non-controlling interest | i — | i — | i 235.0 | i — | i 235.0 | ||||||||||||||
Distributions
to partners | ( i 177.3 | ) | i — | ( i 15.8 | ) | i — | ( i 193.1 | ) | |||||||||||
Contributions
from parent | i — | i — | i 239.6 | ( i 239.6 | ) | i — | |||||||||||||
Taxes
paid for unit-based compensation vesting | i — | ( i 10.9 | ) | i — | i — | ( i 10.9 | ) | ||||||||||||
Change
in intercompany balances | ( i 9.3 | ) | ( i 97.7 | ) | i 107.0 | i — | i — | ||||||||||||
Net
cash provided by (used in) financing activities | i 323.8 | ( i 112.1 | ) | i 565.8 | ( i 239.6 | ) | i 537.9 | ||||||||||||
Net
change in cash and restricted cash | ( i 16.0 | ) | i — | i 0.4 | i — | ( i 15.6 | ) | ||||||||||||
Cash
and restricted cash at beginning of period | i 16.5 | i — | i — | i — | i 16.5 | ||||||||||||||
Cash
and restricted cash at end of period | $ | i 0.5 | $ | i — | $ | i 0.4 | $ | i — | $ | i 0.9 |
Crestwood Midstream Partners LP | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||
Nine Months Ended September
30, 2018 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash
flows from operating activities: | $ | ( i 92.1 | ) | $ | i 262.1 | $ | i 36.4 | $ | i — | $ | i 206.4 | ||||||||
Cash
flows from investing activities: | |||||||||||||||||||
Purchases of property, plant and equipment | ( i 3.7 | ) | ( i 202.0 | ) | i — | i — | ( i 205.7 | ) | |||||||||||
Investment
in unconsolidated affiliates | i — | i — | ( i 27.7 | ) | i — | ( i 27.7 | ) | ||||||||||||
Capital
distributions from unconsolidated affiliates | i — | i — | i 34.6 | i — | i 34.6 | ||||||||||||||
Net
proceeds from sale of assets | i — | i 8.6 | i — | i — | i 8.6 | ||||||||||||||
Capital
distributions from consolidated affiliates | i 36.7 | i — | i — | ( i 36.7 | ) | i — | |||||||||||||
Net
cash provided by (used in) investing activities | i 33.0 | ( i 193.4 | ) | i 6.9 | ( i 36.7 | ) | ( i 190.2 | ) | |||||||||||
Cash
flows from financing activities: | |||||||||||||||||||
Proceeds from the issuance of long-term debt | i 1,152.1 | i — | i — | i — | i 1,152.1 | ||||||||||||||
Payments
on long-term debt | ( i 972.8 | ) | ( i 0.9 | ) | i — | i — | ( i 973.7 | ) | |||||||||||
Payments
on capital leases | i — | ( i 1.1 | ) | i — | i — | ( i 1.1 | ) | ||||||||||||
Distributions
to partners | ( i 179.0 | ) | i — | ( i 6.6 | ) | i — | ( i 185.6 | ) | |||||||||||
Distributions
to parent | i — | i — | ( i 36.7 | ) | i 36.7 | i — | |||||||||||||
Taxes
paid for unit-based compensation vesting | i — | ( i 6.9 | ) | i — | i — | ( i 6.9 | ) | ||||||||||||
Change
in intercompany balances | i 59.8 | ( i 59.8 | ) | i — | i — | i — | |||||||||||||
Net
cash provided by (used in) financing activities | i 60.1 | ( i 68.7 | ) | ( i 43.3 | ) | i 36.7 | ( i 15.2 | ) | |||||||||||
Net
change in cash and restricted cash | i 1.0 | i — | i — | i — | i 1.0 | ||||||||||||||
Cash
and restricted cash at beginning of period | i 1.0 | i — | i — | i — | i 1.0 | ||||||||||||||
Cash
and restricted cash at end of period | $ | i 2.0 | $ | i — | $ | i — | $ | i — | $ | i 2.0 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | statements that are not historical in nature, including, but not limited to: (i) our belief that anticipated cash from operations, cash distributions from entities that we control, and borrowing capacity under our credit facility will be sufficient to meet our anticipated liquidity needs for the foreseeable future; (ii) our belief that we do not have material potential
liability in connection with legal proceedings that would have a significant financial impact on our consolidated financial condition, results of operations or cash flows; and (iii) our belief that our assets will continue to benefit from the development of unconventional shale plays as significant supply basins; and |
• | statements preceded by, followed by or that contain forward-looking terminology including the words “believe,” “expect,” “may,” “will,” “should,” “could,” “anticipate,” “estimate,” “intend” or the negation thereof, or similar expressions. |
• | our ability to successfully implement our business plan for our assets and operations; |
• | governmental legislation and regulations; |
• | industry
factors that influence the supply of and demand for crude oil, natural gas and NGLs; |
• | industry factors that influence the demand for services in the markets (particularly unconventional shale plays) in which we provide services; |
• | weather conditions; |
• | the availability of crude oil, natural
gas and NGLs, and the price of those commodities, to consumers relative to the price of alternative and competing fuels; |
• | economic conditions; |
• | costs or difficulties related to the integration of acquisitions and success of our joint ventures’ operations; |
• | environmental claims; |
• | operating
hazards and other risks incidental to the provision of midstream services, including gathering, compressing, treating, processing, fractionating, transporting and storing energy products (i.e., crude oil, NGLs and natural gas) and related products (i.e., produced water); |
• | interest rates; |
• | the price and availability of debt and equity financing, including our ability to raise capital through alternatives like joint ventures; and |
• | the
ability to sell or monetize assets, to reduce indebtedness, to repurchase our equity securities, to make strategic investments, or for other general partnership purposes. |
Crestwood
Equity | Crestwood Midstream | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September
30, | September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Revenues | $ | 823.6 | $ | 930.2 | $ | 2,342.2 | $ | 2,885.7 | $ | 823.6 | $ | 930.2 | $ | 2,342.2 | $ | 2,885.7 | |||||||||||||||
Costs
of product/services sold | 657.4 | 827.5 | 1,890.2 | 2,518.7 | 657.4 | 827.5 | 1,890.2 | 2,518.7 | |||||||||||||||||||||||
Operations
and maintenance expense | 36.0 | 29.6 | 99.3 | 96.0 | 36.0 | 29.6 | 99.3 | 96.0 | |||||||||||||||||||||||
General
and administrative expense | 24.9 | 25.5 | 84.4 | 72.8 | 23.7 | 24.6 | 80.6 | 69.9 | |||||||||||||||||||||||
Depreciation,
amortization and accretion | 51.5 | 39.2 | 140.6 | 128.8 | 55.1 | 42.7 | 151.2 | 137.9 | |||||||||||||||||||||||
Loss
on long-lived assets, net | (0.1 | ) | (3.6 | ) | (2.1 | ) | (27.7 | ) | (0.1 | ) | (3.6 | ) | (2.1 | ) | (27.7 | ) | |||||||||||||||
Gain
on acquisition | — | — | 209.4 | — | — | — | 209.4 | — | |||||||||||||||||||||||
Operating
income | 53.7 | 4.8 | 335.0 | 41.7 | 51.3 | 2.2 | 328.2 | 35.5 | |||||||||||||||||||||||
Earnings
from unconsolidated affiliates, net | 10.4 | 15.1 | 21.0 | 39.5 | 10.4 | 15.1 | 21.0 | 39.5 | |||||||||||||||||||||||
Interest
and debt expense, net | (30.6 | ) | (25.1 | ) | (83.3 | ) | (73.8 | ) | (30.6 | ) | (25.1 | ) | (83.3 | ) | (73.8 | ) | |||||||||||||||
Other
income, net | 0.1 | — | 0.3 | 0.2 | — | — | — | — | |||||||||||||||||||||||
(Provision)
benefit for income taxes | — | — | (0.3 | ) | (0.2 | ) | 0.1 | — | (0.2 | ) | (0.1 | ) | |||||||||||||||||||
Net
income (loss) | 33.6 | (5.2 | ) | 272.7 | 7.4 | 31.2 | (7.8 | ) | 265.7 | 1.1 | |||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||||
Interest
and debt expense, net | 30.6 | 25.1 | 83.3 | 73.8 | 30.6 | 25.1 | 83.3 | 73.8 | |||||||||||||||||||||||
Provision
(benefit) for income taxes | — | — | 0.3 | 0.2 | (0.1 | ) | — | 0.2 | 0.1 | ||||||||||||||||||||||
Depreciation,
amortization and accretion | 51.5 | 39.2 | 140.6 | 128.8 | 55.1 | 42.7 | 151.2 | 137.9 | |||||||||||||||||||||||
EBITDA | 115.7 | 59.1 | 496.9 | 210.2 | 116.8 | 60.0 | 500.4 | 212.9 | |||||||||||||||||||||||
Unit-based
compensation charges | 13.0 | 10.4 | 41.6 | 27.9 | 13.0 | 10.4 | 41.6 | 27.9 | |||||||||||||||||||||||
Loss
on long-lived assets, net | 0.1 | 3.6 | 2.1 | 27.7 | 0.1 | 3.6 | 2.1 | 27.7 | |||||||||||||||||||||||
Gain
on acquisition | — | — | (209.4 | ) | — | — | — | (209.4 | ) | — | |||||||||||||||||||||
Earnings
from unconsolidated affiliates, net | (10.4 | ) | (15.1 | ) | (21.0 | ) | (39.5 | ) | (10.4 | ) | (15.1 | ) | (21.0 | ) | (39.5 | ) | |||||||||||||||
Adjusted
EBITDA from unconsolidated affiliates, net | 20.1 | 25.9 | 53.7 | 69.9 | 20.1 | 25.9 | 53.7 | 69.9 | |||||||||||||||||||||||
Change
in fair value of commodity inventory-related derivative contracts | 2.1 | 17.1 | 6.9 | 7.0 | 2.1 | 17.1 | 6.9 | 7.0 | |||||||||||||||||||||||
Significant
transaction and environmental related costs and other items | 0.3 | 0.4 | 6.7 | 2.8 | 0.3 | 0.4 | 6.7 | 2.8 | |||||||||||||||||||||||
Adjusted
EBITDA | $ | 140.9 | $ | 101.4 | $ | 377.5 | $ | 306.0 | $ | 142.0 | $ | 102.3 | $ | 381.0 | $ | 308.7 |
Crestwood
Equity | Crestwood Midstream | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September
30, | September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Net
cash provided by operating activities | $ | 84.4 | $ | 40.9 | $ | 278.3 | $ | 200.9 | $ | 85.9 | $ | 42.0 | $ | 281.0 | $ | 206.4 | |||||||||||||||
Net
changes in operating assets and liabilities | 15.8 | 8.8 | (19.2 | ) | (4.0 | ) | 15.7 | 8.6 | (18.2 | ) | (6.6 | ) | |||||||||||||||||||
Amortization
of debt-related deferred costs | (1.7 | ) | (1.8 | ) | (4.6 | ) | (5.4 | ) | (1.7 | ) | (1.8 | ) | (4.6 | ) | (5.4 | ) | |||||||||||||||
Interest
and debt expense, net | 30.6 | 25.1 | 83.3 | 73.8 | 30.6 | 25.1 | 83.3 | 73.8 | |||||||||||||||||||||||
Unit-based
compensation charges | (13.0 | ) | (10.4 | ) | (41.6 | ) | (27.9 | ) | (13.0 | ) | (10.4 | ) | (41.6 | ) | (27.9 | ) | |||||||||||||||
Loss
on long-lived assets, net | (0.1 | ) | (3.6 | ) | (2.1 | ) | (27.7 | ) | (0.1 | ) | (3.6 | ) | (2.1 | ) | (27.7 | ) | |||||||||||||||
Gain
on acquisition | — | — | 209.4 | — | — | — | 209.4 | — | |||||||||||||||||||||||
Earnings
from unconsolidated affiliates, net, adjusted for cash distributions received | (0.6 | ) | 0.1 | (6.9 | ) | 0.3 | (0.6 | ) | 0.1 | (6.9 | ) | 0.3 | |||||||||||||||||||
Deferred
income taxes | 0.3 | — | — | 0.2 | 0.1 | — | (0.1 | ) | 0.1 | ||||||||||||||||||||||
Provision
(benefit) for income taxes | — | — | 0.3 | 0.2 | (0.1 | ) | — | 0.2 | 0.1 | ||||||||||||||||||||||
Other
non-cash income | — | — | — | (0.2 | ) | — | — | — | (0.2 | ) | |||||||||||||||||||||
EBITDA | 115.7 | 59.1 | 496.9 | 210.2 | 116.8 | 60.0 | 500.4 | 212.9 | |||||||||||||||||||||||
Unit-based
compensation charges | 13.0 | 10.4 | 41.6 | 27.9 | 13.0 | 10.4 | 41.6 | 27.9 | |||||||||||||||||||||||
Loss
on long-lived assets, net | 0.1 | 3.6 | 2.1 | 27.7 | 0.1 | 3.6 | 2.1 | 27.7 | |||||||||||||||||||||||
Gain
on acquisition | — | — | (209.4 | ) | — | — | — | (209.4 | ) | — | |||||||||||||||||||||
Earnings
from unconsolidated affiliates, net | (10.4 | ) | (15.1 | ) | (21.0 | ) | (39.5 | ) | (10.4 | ) | (15.1 | ) | (21.0 | ) | (39.5 | ) | |||||||||||||||
Adjusted
EBITDA from unconsolidated affiliates, net | 20.1 | 25.9 | 53.7 | 69.9 | 20.1 | 25.9 | 53.7 | 69.9 | |||||||||||||||||||||||
Change
in fair value of commodity inventory-related derivative contracts | 2.1 | 17.1 | 6.9 | 7.0 | 2.1 | 17.1 | 6.9 | 7.0 | |||||||||||||||||||||||
Significant
transaction and environmental related costs and other items | 0.3 | 0.4 | 6.7 | 2.8 | 0.3 | 0.4 | 6.7 | 2.8 | |||||||||||||||||||||||
Adjusted
EBITDA | $ | 140.9 | $ | 101.4 | $ | 377.5 | $ | 306.0 | $ | 142.0 | $ | 102.3 | $ | 381.0 | $ | 308.7 |
Three
Months Ended | Three Months Ended | ||||||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing,
Supply and Logistics | Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | ||||||||||||||||||
Revenues | $ | 257.8 | $ | 4.1 | $ | 561.7 | $ | 242.3 | $ | 3.5 | $ | 684.4 | |||||||||||
Intersegment
revenues | 33.6 | 3.5 | (37.1 | ) | 54.8 | 2.6 | (57.4 | ) | |||||||||||||||
Costs
of product/services sold | 164.1 | 0.1 | 493.2 | 205.1 | (0.1 | ) | 622.5 | ||||||||||||||||
Operations
and maintenance expenses | 27.5 | 1.1 | 7.4 | 17.2 | 0.7 | 11.7 | |||||||||||||||||
Loss
on long-lived assets, net | (0.1 | ) | — | — | (2.2 | ) | — | (2.5 | ) | ||||||||||||||
Earnings
(loss) from unconsolidated affiliates, net | (0.5 | ) | 10.9 | — | 5.6 | 9.5 | — | ||||||||||||||||
EBITDA | $ | 99.2 | $ | 17.3 | $ | 24.0 | $ | 78.2 | $ | 15.0 | $ | (9.7 | ) |
Nine Months Ended | Nine
Months Ended | ||||||||||||||||||||||
Gathering and Processing | Storage and Transportation | Marketing, Supply and Logistics | Gathering
and Processing | Storage and Transportation | Marketing, Supply and Logistics | ||||||||||||||||||
Revenues | $ | 639.8 | $ | 16.8 | $ | 1,685.6 | $ | 838.1 | $ | 12.8 | $ | 2,034.8 | |||||||||||
Intersegment
revenues | 111.8 | 10.3 | (122.1 | ) | 141.5 | 7.1 | (148.6 | ) | |||||||||||||||
Costs
of product/services sold | 411.0 | 0.1 | 1,479.1 | 701.6 | 0.1 | 1,817.0 | |||||||||||||||||
Operations
and maintenance expenses | 70.2 | 3.0 | 26.1 | 52.7 | 2.3 | 41.0 | |||||||||||||||||
Loss
on long-lived assets, net | (2.1 | ) | — | (0.2 | ) | (2.1 | ) | — | (26.7 | ) | |||||||||||||
Gain
on acquisition | 209.4 | — | — | — | — | — | |||||||||||||||||
Earnings
(loss) from unconsolidated affiliates, net | (3.5 | ) | 24.5 | — | 15.8 | 23.7 | — | ||||||||||||||||
EBITDA | $ | 474.2 | $ | 48.5 | $ | 58.1 | $ | 239.0 | $ | 41.2 | $ | 1.5 |
Three
Months Ended | Nine Months Ended | ||||||||||||||
September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Credit
facility | $ | 6.0 | $ | 6.4 | $ | 19.6 | $ | 16.8 | |||||||
Senior
notes | 26.7 | 18.1 | 70.0 | 54.4 | |||||||||||
Other debt-related costs | 1.8 | 2.0 | 5.0 | 5.6 | |||||||||||
Gross
interest and debt expense | 34.5 | 26.5 | 94.6 | 76.8 | |||||||||||
Less: capitalized interest | 3.9 | 1.4 | 11.3 | 3.0 | |||||||||||
Interest
and debt expense, net | $ | 30.6 | $ | 25.1 | $ | 83.3 | $ | 73.8 |
Nine
Months Ended | |||||||
2019 | 2018 | ||||||
Net cash provided by operating activities | $ | 278.3 | $ | 200.9 | |||
Net
cash used in investing activities | $ | (834.5 | ) | $ | (190.2 | ) | |
Net cash provided by (used in) financing activities | $ | 540.6 | $ | (9.6 | ) |
• | growth capital expenditures, which are made to construct additional assets, expand and upgrade existing systems, or acquire additional
assets; or |
• | maintenance capital expenditures, which are made to replace partially or fully depreciated assets, to maintain the existing operating capacity of our assets, extend their useful lives or comply with regulatory requirements. |
Growth capital | $ | 299.8 | |
Maintenance capital | 13.9 | ||
Other (1) | 33.3 | ||
Purchases
of property, plant and equipment | $ | 347.0 |
• | During the nine months ended September 30, 2019, Crestwood Niobrara issued $235 million in new Series A-3 Preferred Units to Jackalope Holdings in conjunction with Crestwood Niobrara’s acquisition of the remaining 50% equity interest in Jackalope from Williams. For a further discussion of this transaction, see Item 1. Financial Statements, Note 10; |
• | During
the nine months ended September 30, 2019 and 2018, we distributed approximately $15.8 million and $6.6 million to Crestwood Niobrara’s preferred interest holder; and |
• | During the nine months ended September 30, 2019, our taxes paid for unit-based compensation vesting increased by approximately $4 million compared to the same period in 2018, primarily due to higher vesting of unit-based compensation awards. |
• | During
the nine months ended September 30, 2019, our debt-related transactions resulted in net borrowings of approximately $509.5 million compared to net borrowings of approximately $178.4 million during the same period in 2018. The net increase during 2019 was primarily driven by the issuance of $600 million unsecured senior notes due 2027, partially offsetting by a decrease of approximately $80.6 million in borrowings under the Crestwood Midstream’s credit facility. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item
4. | Controls and Procedures |
Item
1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item
3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item
5. | Other Information |
Item 6. | Exhibits |
Exhibit Number | Description | |
2.1 | ||
2.2 | ||
3.1 | ||
3.2 | ||
3.3 | ||
3.4 | ||
3.5 | ||
3.6 | ||
3.7 | ||
3.8 | ||
3.9 | ||
3.10 | ||
3.11 | ||
3.12 | ||
3.13 | ||
3.14 | ||
3.15 | ||
3.16 | ||
*31.1 | ||
*31.2 | ||
*31.3 | ||
*31.4 | ||
*32.1 | ||
*32.2 | ||
*32.3 | ||
*32.4 | ||
**101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
**101.SCH | Inline
XBRL Taxonomy Extension Schema Document | |
**101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
**101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
**101.PRE | Inline
XBRL Taxonomy Extension Presentation Linkbase Document | |
**101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
104 | Cover Page Interactive Data File (contained in Exhibit
101) |
* | |
** | Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
CRESTWOOD EQUITY PARTNERS LP | |||||
By: | |||||
(its general partner) | |||||
Date: | By: | /s/ ROBERT T. HALPIN | |||
Executive
Vice President and Chief Financial Officer | |||||
(Duly Authorized Officer and Principal Financial Officer) | |||||
CRESTWOOD
MIDSTREAM PARTNERS LP | |||||
By: | |||||
(its general partner) | |||||
Date: | By: | /s/ ROBERT T. HALPIN | |||
Executive
Vice President and Chief Financial Officer | |||||
(Duly Authorized Officer and Principal Financial Officer) |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
5/1/27 | ||||
12/31/23 | ||||
1/1/23 | ||||
1/1/21 | ||||
12/31/20 | ||||
1/1/20 | ||||
12/31/19 | 10-K | |||
11/14/19 | ||||
11/7/19 | ||||
11/1/19 | ||||
Filed on: | 10/31/19 | |||
10/29/19 | 8-K | |||
10/17/19 | ||||
For Period end: | 9/30/19 | |||
8/14/19 | ||||
8/7/19 | ||||
7/1/19 | ||||
6/30/19 | 10-Q | |||
5/15/19 | ||||
5/8/19 | ||||
4/9/19 | 8-K, 8-K/A | |||
4/8/19 | ||||
3/31/19 | 10-Q | |||
2/22/19 | 10-K | |||
2/14/19 | SC 13G | |||
2/7/19 | ||||
1/1/19 | ||||
12/31/18 | 10-K | |||
9/30/18 | 10-Q | |||
8/14/18 | ||||
8/7/18 | ||||
7/1/18 | ||||
6/30/18 | 10-Q | |||
5/15/18 | ||||
5/8/18 | ||||
3/31/18 | 10-Q | |||
2/14/18 | ||||
2/7/18 | ||||
1/1/18 | ||||
12/31/17 | 10-K | |||
9/15/15 | ||||
8/1/12 | 8-K | |||
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