Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 09, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-36336 | ||
Entity Registrant Name | ENLINK MIDSTREAM, LLC | ||
Document Fiscal Year Focus | 2021 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001592000 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-4108528 | ||
Entity Address, Address Line One | 1722 Routh St., | ||
Entity Address, Address Line Two | Suite 1300 | ||
Entity Address, City or Town | Dallas, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75201 | ||
City Area Code | 214 | ||
Local Phone Number | 953-9500 | ||
Title of 12(b) Security | Common Units Representing LimitedLiability Company Interests | ||
Trading Symbol | ENLC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.7 | ||
Entity Common Stock, Shares Outstanding | 484,003,750 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Location | Dallas, TX |
Auditor Name | KPMG LLP |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 26.2 | $ 39.6 | |
Accounts receivable: | |||
Trade, net of allowance for bad debt of $0.3 and $0.5, respectively | 94.9 | 80.6 | |
Accrued revenue and other | 693.3 | 447.5 | |
Fair value of derivative assets | 22.4 | 25 | |
Other current assets | 83.6 | 58.7 | |
Total current assets | 920.4 | 651.4 | |
Property and equipment, net of accumulated depreciation of $4,332.0 and $3,863.0, respectively | 6,388.3 | 6,652.1 | |
Intangible assets, net of accumulated amortization of $795.1 and $668.8, respectively | 1,049.7 | 1,125.4 | |
Investment in unconsolidated affiliates | 28 | 41.6 | |
Fair value of derivative assets | 0.2 | 4.9 | |
Other assets, net | 96.6 | 75.5 | |
Total assets | 8,483.2 | 8,550.9 | |
Current liabilities: | |||
Accounts payable and drafts payable | 139.6 | 60.5 | |
Accrued gas, NGLs, condensate, and crude oil purchases | [1] | 521.5 | 291.5 |
Fair value of derivative liabilities | 34.9 | 37.1 | |
Current maturities of long-term debt | 0 | 349.8 | |
Other current liabilities | 202.9 | 149.1 | |
Total current liabilities | 898.9 | 888 | |
Long-term debt | 4,363.7 | 4,244 | |
Other long-term liabilities | 93.9 | 94.8 | |
Deferred tax liability, net | 137.5 | 108.6 | |
Fair value of derivative liabilities | 2.2 | 2.5 | |
Members’ equity: | |||
Members’ equity (484,277,258 and 489,381,149 units issued and outstanding, respectively) | 1,325.8 | 1,508.8 | |
Accumulated other comprehensive loss | (1.4) | (15.3) | |
Non-controlling interest | 1,662.6 | 1,719.5 | |
Total members’ equity | 2,987 | 3,213 | |
Commitments and contingencies (Note 14) | |||
Total liabilities and members’ equity | $ 8,483.2 | $ 8,550.9 | |
[1] | Includes related party accounts payable balances of $1.6 million and $1.0 million at December 31, 2021 and December 31, 2020, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Accounts receivable, allowance for credit loss, current | $ 0.3 | $ 0.5 |
Accumulated depreciation | 4,332 | 3,863 |
Accumulated amortization | $ 795.1 | $ 668.8 |
Members’ equity: | ||
Common units issued (in shares) | 484,277,258 | 489,381,149 |
Common units outstanding (in shares) | 484,277,258 | 489,381,149 |
Accounts payable, related parties | $ 1.6 | $ 1 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenues: | ||||
Revenue from contracts with customers | $ 6,845 | $ 3,915.8 | $ 6,038.5 | |
Gain (loss) on derivative activity | (159.1) | (22) | 14.4 | |
Total revenues | 6,685.9 | 3,893.8 | 6,052.9 | |
Operating costs and expenses: | ||||
Cost of sales, exclusive of operating expenses and depreciation and amortization | [1] | 5,189.9 | 2,388.5 | 4,392.5 |
Operating expenses | 362.9 | 373.8 | 467.1 | |
Depreciation and amortization | 607.5 | 638.6 | 617 | |
Impairments | 0.8 | 362.8 | 1,133.5 | |
(Gain) loss on disposition of assets | (1.5) | 8.8 | (1.9) | |
General and administrative | 107.8 | 103.3 | 152.6 | |
Loss on secured term loan receivable | 0 | 0 | 52.9 | |
Total operating costs and expenses | 6,267.4 | 3,875.8 | 6,813.7 | |
Operating income (loss) | 418.5 | 18 | (760.8) | |
Other income (expense): | ||||
Interest expense, net of interest income | (238.7) | (223.3) | (216) | |
Gain on extinguishment of debt | 0 | 32 | 0 | |
Income (loss) from unconsolidated affiliates | (11.5) | 0.6 | (16.8) | |
Other income | 0 | 0.3 | 0.9 | |
Total other expense | (250.2) | (190.4) | (231.9) | |
Income (loss) before non-controlling interest and income taxes | 168.3 | (172.4) | (992.7) | |
Income tax expense | (25.4) | (143.2) | (6.9) | |
Net income (loss) | 142.9 | (315.6) | (999.6) | |
Net income attributable to non-controlling interest | 120.5 | 105.9 | 119.7 | |
Net income (loss) attributable to ENLC | $ 22.4 | $ (421.5) | $ (1,119.3) | |
Net income (loss) attributable to ENLC per unit: | ||||
Basic common unit (in dollars per share) | $ 0.05 | $ (0.86) | $ (2.41) | |
Diluted common unit (in dollars per share) | $ 0.05 | $ (0.86) | $ (2.41) | |
Product sales | ||||
Revenues: | ||||
Revenue from contracts with customers | $ 5,994 | $ 2,977.5 | $ 5,030.1 | |
Midstream services | ||||
Revenues: | ||||
Revenue from contracts with customers | $ 851 | $ 938.3 | $ 1,008.4 | |
[1] | Includes related party cost of sales of $17.9 million, $8.7 million, and $21.7 million for the years ended December 31, 2021, 2020, and 2019, respectively. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Related party cost of sales | $ 17.9 | $ 8.7 | $ 21.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Statement of Comprehensive Income [Abstract] | |||||||
Net income (loss) | $ 142.9 | $ (315.6) | $ (999.6) | ||||
Unrealized gain (loss) on designated cash flow hedge | [1] | 13.9 | [2] | (4.3) | [3] | (9) | [4] |
Comprehensive income (loss) | 156.8 | (319.9) | (1,008.6) | ||||
Comprehensive income attributable to non-controlling interest | 120.5 | 105.9 | 119.7 | ||||
Comprehensive income (loss) attributable to ENLC | $ 36.3 | $ (425.8) | $ (1,128.3) | ||||
[1] | Includes a tax expense of $4.3 million for the year ended December 31, 2021 and a tax benefit of $1.3 million and $3.4 million for the years ended December 31, 2020 and 2019, respectively. | ||||||
[2] | Includes a tax expense of $4.3 million. | ||||||
[3] | Includes a tax benefit of $1.3 million. | ||||||
[4] | Includes a tax benefit of $3.4 million. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Income tax expense (benefit) | $ 4.3 | $ (1.3) | $ (3.4) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Members' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Units | Common UnitsCumulative Effect, Period of Adoption, Adjustment | Common UnitsCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjusted Balance | Non-Controlling Interest | Non-Controlling InterestCumulative Effect, Period of Adoption, Adjusted Balance | Redeemable Non-controlling interest (Temporary Equity) | Redeemable Non-controlling interest (Temporary Equity)Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Member equity, beginning balance at Dec. 31, 2018 | $ 4,974.2 | $ 0.3 | $ 4,974.5 | $ 1,730.9 | $ 0.3 | $ 1,731.2 | $ (2) | $ (2) | $ 3,245.3 | $ 3,245.3 | ||||
Units outstanding, beginning balance (in shares) at Dec. 31, 2018 | 181,300,000 | 181,300,000 | ||||||||||||
Increase (Decrease) in Members' Equity | ||||||||||||||
Issuance of common units for ENLK public common units related to the Merger | 399 | $ 1,958.1 | (1,559.1) | |||||||||||
Issuance of common units for ENLK public common units related to the Merger (in shares) | 304,900,000 | |||||||||||||
Conversion of restricted units for common units, net of units withheld for taxes | (10.6) | $ (7.8) | (2.8) | |||||||||||
Conversion of restricted units for common units, net of units withheld for taxes (in shares) | 1,600,000 | |||||||||||||
Unit-based compensation | 38.9 | $ 37.5 | 1.4 | |||||||||||
Contributions from non-controlling interests | 97.5 | 97.5 | ||||||||||||
Distributions | (687.4) | (467.2) | (220.2) | $ (0.3) | ||||||||||
Unrealized gain (loss) on designated cash flow hedge | [1] | (9) | [2] | (9) | ||||||||||
Fair value adjustment related to redeemable non-controlling interest | 3 | 3 | (4) | |||||||||||
Net income (loss) | (999.8) | (1,119.3) | 119.5 | 0.2 | ||||||||||
Member equity, end balance at Dec. 31, 2019 | 3,806.1 | $ 2,135.5 | (11) | 1,681.6 | ||||||||||
Units outstanding, end balance (in shares) at Dec. 31, 2019 | 487,800,000 | |||||||||||||
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2018 | 9.3 | $ 9.3 | ||||||||||||
Increase (Decrease) in Temporary Equity | ||||||||||||||
Fair value adjustment related to redeemable non-controlling interest | 3 | $ 3 | (4) | |||||||||||
Net income (loss) | (999.8) | (1,119.3) | 119.5 | 0.2 | ||||||||||
Redeemable noncontrolling interest, ending balance at Dec. 31, 2019 | 5.2 | |||||||||||||
Increase (Decrease) in Members' Equity | ||||||||||||||
Conversion of restricted units for common units, net of units withheld for taxes | (4.7) | $ (4.7) | 0 | |||||||||||
Conversion of restricted units for common units, net of units withheld for taxes (in shares) | 2,000,000 | |||||||||||||
Unit-based compensation | 33 | $ 33 | 0 | |||||||||||
Contributions from non-controlling interests | 52.6 | 52.6 | ||||||||||||
Distributions | (353.3) | (232.7) | (120.6) | (0.6) | ||||||||||
Unrealized gain (loss) on designated cash flow hedge | [3] | (4.3) | [2] | (4.3) | ||||||||||
Fair value adjustment related to redeemable non-controlling interest | 0.4 | 0.4 | (0.6) | |||||||||||
Common units repurchased | $ (1.2) | $ (1.2) | ||||||||||||
Common units repurchased (in shares) | (383,614) | (400,000) | ||||||||||||
Net income (loss) | $ (315.6) | $ (421.5) | 105.9 | |||||||||||
Member equity, end balance at Dec. 31, 2020 | $ 3,213 | $ 1,508.8 | (15.3) | 1,719.5 | ||||||||||
Units outstanding, end balance (in shares) at Dec. 31, 2020 | 489,381,149 | 489,400,000 | ||||||||||||
Increase (Decrease) in Temporary Equity | ||||||||||||||
Fair value adjustment related to redeemable non-controlling interest | $ 0.4 | $ 0.4 | (0.6) | |||||||||||
Redemption of non-controlling interest | (4) | |||||||||||||
Net income (loss) | (315.6) | (421.5) | 105.9 | |||||||||||
Redeemable noncontrolling interest, ending balance at Dec. 31, 2020 | 0 | |||||||||||||
Increase (Decrease) in Members' Equity | ||||||||||||||
Issuance of common units for ENLK public common units related to the Merger | 399 | |||||||||||||
Conversion of restricted units for common units, net of units withheld for taxes | (2) | $ (2) | ||||||||||||
Conversion of restricted units for common units, net of units withheld for taxes (in shares) | 1,000,000 | |||||||||||||
Unit-based compensation | 23.6 | $ 23.6 | ||||||||||||
Contributions from non-controlling interests | 3.2 | 3.2 | ||||||||||||
Distributions | (317.4) | (186.8) | (130.6) | (0.2) | ||||||||||
Unrealized gain (loss) on designated cash flow hedge | [4] | 13.9 | [2] | 13.9 | ||||||||||
Fair value adjustment related to redeemable non-controlling interest | (0.1) | (0.1) | 0.2 | |||||||||||
Redemption of Series B Preferred Units | (50) | (50) | ||||||||||||
Common units repurchased | $ (40.1) | $ (40.1) | ||||||||||||
Common units repurchased (in shares) | (6,091,001) | (6,100,000) | ||||||||||||
Net income (loss) | $ 142.9 | $ 22.4 | 120.5 | |||||||||||
Member equity, end balance at Dec. 31, 2021 | $ 2,987 | $ 1,325.8 | $ (1.4) | 1,662.6 | ||||||||||
Units outstanding, end balance (in shares) at Dec. 31, 2021 | 484,277,258 | 484,300,000 | ||||||||||||
Increase (Decrease) in Temporary Equity | ||||||||||||||
Fair value adjustment related to redeemable non-controlling interest | $ (0.1) | $ (0.1) | 0.2 | |||||||||||
Net income (loss) | $ 142.9 | $ 22.4 | $ 120.5 | |||||||||||
Redeemable noncontrolling interest, ending balance at Dec. 31, 2021 | $ 0 | |||||||||||||
[1] | Includes a tax benefit of $3.4 million. | |||||||||||||
[2] | Includes a tax expense of $4.3 million for the year ended December 31, 2021 and a tax benefit of $1.3 million and $3.4 million for the years ended December 31, 2020 and 2019, respectively. | |||||||||||||
[3] | Includes a tax benefit of $1.3 million. | |||||||||||||
[4] | Includes a tax expense of $4.3 million. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Members' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Income tax expense (benefit) | $ 4.3 | $ (1.3) | $ (3.4) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 142.9 | $ (315.6) | $ (999.6) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 607.5 | 638.6 | 617 |
Impairments | 0.8 | 362.8 | 1,133.5 |
(Gain) loss on disposition of assets | (1.5) | 8.8 | (1.9) |
Loss on secured term loan receivable | 0 | 0 | 52.9 |
Non-cash unit-based compensation | 25.3 | 28.4 | 39.4 |
Utility credits, net of usage | (32.6) | 0 | 0 |
Non-cash loss on derivatives recognized in net income (loss) | 10.3 | 14.8 | 2.5 |
Gain on extinguishment of debt | 0 | (32) | 0 |
Amortization of debt issuance costs and net discount of senior unsecured notes | 5.2 | 4.6 | 4.9 |
Amortization of designated cash flow hedge | 12.5 | 0.5 | 0.1 |
Payments to terminate interest rate swaps | (1.8) | (10.9) | 0 |
Deferred income tax expense | 24.6 | 142.1 | 6.9 |
Distribution of earnings from unconsolidated affiliates | 0 | 1.6 | 16.5 |
(Income) loss from unconsolidated affiliates | 11.5 | (0.6) | 16.8 |
Other operating activities | (2.2) | (0.8) | (2.3) |
Changes in assets and liabilities: | |||
Accounts receivable, accrued revenue, and other | (259.9) | (21.5) | 337.1 |
Natural gas and NGLs inventory, prepaid expenses, and other | (13.6) | 15.1 | 13.6 |
Accounts payable, accrued product purchases, and other accrued liabilities | 328.3 | (104.8) | (245.5) |
Net cash provided by operating activities | 857.3 | 731.1 | 991.9 |
Cash flows from investing activities: | |||
Additions to property and equipment | (184) | (302.2) | (754.9) |
Acquisition of assets | (56.7) | (32.3) | 0 |
Proceeds from sale of property | 4.8 | 17.6 | 14.3 |
Distribution from unconsolidated affiliates in excess of earnings | 3.9 | 0.5 | 3.7 |
Other investing activities | 0.6 | (1.3) | (4.6) |
Net cash used in investing activities | (231.4) | (317.7) | (741.5) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 1,234.5 | 1,650 | 3,310 |
Payments on borrowings | (1,469.5) | (1,786) | (2,971.4) |
Distribution to members | (186.8) | (232.7) | (467.2) |
Distributions to non-controlling interests | (130.8) | (121.2) | (220.5) |
Redemption of Series B Preferred Units | (50) | 0 | 0 |
Common unit repurchases | (40.1) | (1.2) | 0 |
Contributions by non-controlling interests | 3.2 | 52.6 | 97.5 |
Conversion of restricted units, net of units withheld for taxes | (2) | (4.7) | (7.8) |
Debt financing costs | (0.3) | (7.7) | (10) |
Other financing activities | 2.5 | (0.3) | (4) |
Net cash used in financing activities | (639.3) | (451.2) | (273.4) |
Net decrease in cash and cash equivalents | (13.4) | (37.8) | (23) |
Cash and cash equivalents, beginning of period | 39.6 | 77.4 | 100.4 |
Cash and cash equivalents, end of period | $ 26.2 | $ 39.6 | $ 77.4 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | (1) Organization and Nature of Business (a) Organization of Business ENLC is a Delaware limited liability company formed in October 2013. The Company’s common units are traded on the New York Stock Exchange under the symbol “ENLC.” ENLC owns all of ENLK’s common units and also owns all of the membership interests of the General Partner. The General Partner manages ENLK’s operations and activities. Devon Transaction In 2014, we completed a series of transactions with Devon pursuant to which Devon contributed certain subsidiaries and assets to us in exchange for a majority interest in us (the “Devon Transaction”). GIP Transaction On July 18, 2018, subsidiaries of Devon closed a transaction to sell all of their equity interests in ENLK, ENLC, and the Managing Member to GIP. As a result of the transaction: • GIP, through GIP III Stetson I, L.P., acquired all of the equity interests held by subsidiaries of Devon in ENLK and the Managing Member, which, as of the closing date, amounted to 100% of the outstanding limited liability company interests in the Managing Member and approximately 23.1% of the outstanding limited partner interests in ENLK; • GIP, through GIP III Stetson II, L.P., acquired all of the equity interests held by subsidiaries of Devon in ENLC, which, as of the closing date, amounted to approximately 63.8% of the outstanding limited liability company interests in ENLC; and • Through this transaction, GIP acquired control of (i) the Managing Member, (ii) ENLC, and (iii) ENLK, as a result of ENLC’s ownership of the General Partner. Simplification of the Corporate Structure On January 25, 2019, we completed the Merger, an internal reorganization pursuant to which ENLC owns all of the outstanding common units of ENLK. As a result of the Merger: • Each issued and outstanding ENLK common unit (except for ENLK common units held by ENLC and its subsidiaries) was converted into 1.15 ENLC common units, which resulted in the issuance of 304,822,035 ENLC common units. • The General Partner’s incentive distribution rights in ENLK were eliminated. • Certain terms of the Series B Preferred Units were modified pursuant to an amended partnership agreement of ENLK. See “Note 8—Certain Provisions of the Partnership Agreement” for additional information regarding the modified terms of the Series B Preferred Units. • ENLC issued to the holder of the Series B Preferred Units, for no additional consideration, ENLC Class C Common Units equal to the number of Series B Preferred Units held immediately prior to the effective time of the Merger, in order to provide Series B Preferred Unit holders with certain voting rights with respect to ENLC. ENLC also agreed to issue an additional ENLC Class C Common Unit to the applicable holder of each Series B Preferred Unit for each additional Series B Preferred Unit issued by ENLK in quarterly in-kind distributions. In addition, for each Series B Preferred Unit that is exchanged into an ENLC common unit or repurchased, an ENLC Class C Common Unit will be canceled. • Each unit-based award issued and outstanding immediately prior to the effective time of the Merger under the GP Plan was converted into 1.15 awards with respect to ENLC common units with substantially similar terms as were in effect immediately prior to the effective time. • Each unit-based award with performance-based vesting conditions issued and outstanding immediately prior to the effective time of the Merger under the GP Plan and the 2014 Plan was modified such that the performance metric for any then outstanding performance award relates (on a weighted average basis) to (i) the combined performance of ENLC and ENLK for periods preceding the effective time of the Merger and (ii) the performance of ENLC for periods on and after the effective time of the Merger. • ENLC assumed the outstanding debt under the Term Loan and ENLK became a guarantor thereof. See “Note 6—Long-Term Debt” for additional information regarding the Term Loan. • We refinanced our existing revolving credit facilities at ENLK and ENLC. In connection with the Merger, we entered into the Consolidated Credit Facility, with respect to which ENLK is a guarantor. See “Note 6—Long-Term Debt” for additional information regarding the Consolidated Credit Facility. • We were required to allocate the goodwill in our Corporate reporting unit previously associated with the incentive distribution rights in ENLK granted to the General Partner which were created in connection with the Devon Transaction, to the Permian, Louisiana, Oklahoma, and North Texas reporting units. • We reduced our deferred tax liability by $399.0 million related to ENLC’s step-up in basis of ENLK’s underlying assets with the offsetting credit in members’ equity. See “Note 7—Income Taxes” for more information on the deferred tax liabilities. (b) Nature of Business We primarily focus on providing midstream energy services, including: • gathering, compressing, treating, processing, transporting, storing, and selling natural gas; • fractionating, transporting, storing, and selling NGLs; and • gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and condensate, in addition to brine disposal services. Our midstream energy asset network includes approximately 12,100 miles of pipelines, 22 natural gas processing plants with approximately 5.5 Bcf/d of processing capacity, seven fractionators with approximately 320,000 Bbls/d of fractionation capacity, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, brine disposal wells, a crude oil trucking fleet, and equity investments in certain joint ventures. Our operations are based in the United States, and our sales are derived primarily from domestic customers. Our natural gas business includes connecting the wells of producers in our market areas to our gathering systems. Our gathering systems consist of networks of pipelines that collect natural gas from points at or near producing wells and transport it to our processing plants or to larger pipelines for further transmission. We operate processing plants that remove NGLs from the natural gas stream that is transported to the processing plants by our own gathering systems or by third-party pipelines. In conjunction with our gathering and processing business, we may purchase natural gas and NGLs from producers and other supply sources and sell that natural gas or NGLs to utilities, industrial consumers, marketers, and pipelines. Our transmission pipelines receive natural gas from our gathering systems and from third-party gathering and transmission systems and deliver natural gas to industrial end-users, utilities, and other pipelines. Our fractionators separate NGLs into separate purity products, including ethane, propane, iso-butane, normal butane, and natural gasoline. Our fractionators receive NGLs primarily through our transmission lines that transport NGLs from East Texas and from our South Louisiana processing plants. Our fractionators also have the capability to receive NGLs by truck or rail terminals. We also have agreements pursuant to which third parties transport NGLs from our West Texas and Central Oklahoma operations to our NGL transmission lines that then transport the NGLs to our fractionators. In addition, we have NGL storage capacity to provide storage for customers. Our crude oil and condensate business includes the gathering and transmission of crude oil and condensate via pipelines, barges, rail, and trucks, in addition to condensate stabilization and brine disposal. We also purchase crude oil and condensate from producers and other supply sources and sell that crude oil and condensate through our terminal facilities to various markets. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) Significant Accounting Policies (a) Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with GAAP. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to the financial statements for the prior period to conform to current period presentation. The effect of these reclassifications had no impact on previously reported members’ equity or net income (loss). (b) Management’s Use of Estimates The preparation of financial statements in accordance with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates. (c) Revenue Recognition We generate the majority of our revenues from midstream energy services, including gathering, transmission, processing, fractionation, storage, condensate stabilization, brine services, and marketing, through various contractual arrangements, which include fee-based contract arrangements or arrangements where we purchase and resell commodities in connection with providing the related service and earn a net margin for our fee. While our transactions vary in form, the essential element of most of our transactions is the use of our assets to transport a product or provide a processed product to an end-user or marketer at the tailgate of the plant, pipeline, or barge, truck, or rail terminal. Revenues from both “Product sales” and “Midstream services” represent revenues from contracts with customers and are reflected on the consolidated statements of operations as follows: • Product sales— Product sales represent the sale of natural gas, NGLs, crude oil, and condensate where the product is purchased and resold in connection with providing our midstream services as outlined above. • Midstream services— Midstream services represent all other revenue generated as a result of performing our midstream services outlined above. Evaluation of Our Contractual Performance Obligations Performance obligations in our contracts with customers include: • promises to perform midstream services for our customers over a specified contractual term and/or for a specified volume of commodities; and • promises to sell a specified volume of commodities to our customers. The identification of performance obligations under our contracts requires a contract-by-contract evaluation of when control, including the economic benefit, of commodities transfers to and from us (if at all). For contracts where control of commodities transfers to us before we perform our services, we generally have no performance obligation for our services, and accordingly, we do not consider these revenue-generating contracts. Based on the control determination, all contractually-stated fees that are deducted from our payments to producers or other suppliers for commodities purchased are reflected as a reduction in the cost of such commodity purchases. Alternatively, for contracts where control of commodities transfers to us after we perform our services, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating and recognize the fees received for satisfying them as midstream services revenues over time as we satisfy our performance obligations. For contracts where control of commodities never transfers to us and we simply earn a fee for our services, we recognize these fees as midstream services revenues over time as we satisfy our performance obligations. We also evaluate our contractual arrangements that contain a purchase and sale of commodities under the principal/agent provisions in ASC 606. For contracts where we possess control of the commodity and act as principal in the purchase and sale, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities when purchased. For contracts in which we do not possess control of the commodity and are acting as an agent, our consolidated statements of operations only reflect midstream services revenues that we earn based on the fees contained in the applicable contract. Accounting Methodology for Certain Contracts For NGL contracts in which we purchase raw mix NGLs and subsequently transport, fractionate, and market the NGLs, we consider the contractually-stated fees to serve as pricing mechanisms that reduce the cost of the commodities purchased. We account for the contractually-stated fees on the consolidated statements of operations as a reduction of cost of sales of such commodities purchased upon receipt of the raw mix NGLs, because we determined that the control, including the economic benefit, of commodities has passed to us once the raw mix NGLs have been purchased from the customer. Upon sale of the NGLs to a third-party customer, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities purchased. For our crude oil and condensate service contracts in which we purchase the commodity, we utilize a similar approach under as outlined above for NGL contracts. For our natural gas gathering and processing contracts in which we perform midstream services and also purchase the natural gas, we determine if economic control of the commodities has passed from the producer to us before or after we perform our services (if at all). Control is assessed on a contract-by-contract basis by analyzing each contract’s provisions, which can include provisions for: the customer to take its residue gas and/or NGLs in-kind; fixed or actual NGL or keep-whole recovery; commodity purchase prices at weighted average sales price or market index-based pricing; and various other contract-specific considerations. Based on this control assessment, our gathering and processing contracts fall into two primary categories: • For gathering and processing contracts in which there is a commodity purchase and analysis of the contract provisions indicates that control, including the economic benefit, of the natural gas passes to us when the natural gas is brought into our system, we do not consider these contracts to contain performance obligations for our services. As control of the natural gas passes to us prior to performing our gathering and processing services, we are, in effect, performing our services for our own benefit. Based on this control determination, we consider the contractually-stated fees to serve as pricing mechanisms that reduce the cost of such commodity purchased upon receipt of the natural gas, rather than being recorded as midstream services revenue. Upon sale of the residue gas and/or NGLs to a third-party customer, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities purchased, net of fees. • For gathering and processing contracts in which there is a commodity purchase and analysis of the contract provisions indicates that control, including the economic benefit, of the natural gas does not pass to us until after the natural gas has been gathered and processed, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating, and we recognize the fees received for satisfying these performance obligations as midstream services revenues over time as we satisfy our performance obligations. For midstream service contracts related to NGL, crude oil, or natural gas gathering and processing in which there is no commodity purchase or control of the commodity never passes to us and we simply earn a fee for our services, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating, and we recognize the fees received for satisfying these performance obligations as midstream services revenue over time as we satisfy our performance obligations. For our natural gas transmission contracts, we determined that control of the natural gas never transfers to us and we simply earn a fee for our services. Therefore, we recognize these fees as midstream services revenue over time as we satisfy our performance obligations. We also evaluate our commodity marketing contracts, under which we purchase and sell commodities in connection with our gas, NGL, and crude and condensate midstream services, pursuant to ASC 606, including the principal/agent provisions. For contracts in which we possess control of the commodity and act as principal in the purchase and sale of commodities, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities when purchased. For contracts in which we do not possess control of the commodity and are acting as agent, our consolidated statements of operations only reflect midstream services revenues that we earn based on the fees contained in the applicable contract. Satisfaction of Performance Obligations and Recognition of Revenue For our commodity sales contracts, we satisfy our performance obligations at the point in time at which the commodity transfers from us to the customer. This transfer pattern aligns with our billing methodology. Therefore, we recognize product sales revenue at the time the commodity is delivered and in the amount to which we have the right to invoice the customer. For our midstream service contracts that contain revenue-generating performance obligations, we satisfy our performance obligations over time as we perform the midstream service and as the customer receives the benefit of these services over the term of the contract. We recognize revenue in the amount to which the entity has a right to invoice, since we have a right to consideration from our customer in an amount that corresponds directly with the value to the customer of our performance completed to date. Accordingly, we continue to recognize revenue over time as our midstream services are performed. We generally accrue one month of sales and the related natural gas, NGL, condensate, and crude oil purchases and reverse these accruals when the sales and purchases are invoiced and recorded in the subsequent month. Actual results could differ from the accrual estimates. We typically receive payment for invoiced amounts within one month, depending on the terms of the contract. Prior to issuing our financial statements, we review our revenue and purchases estimates based on available information to determine if adjustments are required. We account for taxes collected from customers attributable to revenue transactions and remitted to government authorities on a net basis (excluded from revenues). Minimum Volume Commitments and Firm Transportation Contracts The following table summarizes the contractually committed fees (in millions) that we expect to recognize in our consolidated statements of operations, in either revenue or reductions to cost of sales, from MVC and firm transportation contractual provisions. Under these agreements, our customers or suppliers agree to transport or process a minimum volume of commodities on our system over an agreed period. If a customer or supplier fails to meet the minimum volume specified in such agreement, the customer or supplier is obligated to pay a contractually determined fee based upon the shortfall between actual volumes and the contractually stated volumes. All amounts in the table below are determined using the contractually-stated MVC or firm transportation volumes specified for each period multiplied by the relevant deficiency or reservation fee. Actual amounts could differ due to the timing of revenue recognition or reductions to cost of sales resulting from make-up right provisions included in our agreements, as well as due to nonpayment or nonperformance by our customers. We record revenue under MVC and firm transportation contracts during periods of shortfall when it is known that the customer cannot, or will not, make up the deficiency. These fees do not represent the shortfall amounts we expect to collect under our MVC and firm transportation contracts, as we generally do not expect volume shortfalls to equal the full amount of the contractual MVCs and firm transportation contracts during these periods. Contractually Committed Fees Commitments 2022 $ 138.8 2023 126.5 2024 108.9 2025 63.8 2026 57.8 Thereafter 289.6 Total $ 785.4 (d) Acquisition of Business On April 30, 2021, we completed the acquisition of Amarillo Rattler, LLC, the owner of a gathering and processing system located in the Midland Basin. In connection with the purchase, we entered into an amended and restated gas gathering and processing agreement with Diamondback Energy, strengthening our dedicated acreage position with that entity. We acquired the system with an upfront payment of $50.0 million, which was paid with cash-on-hand, with an additional $10.0 million to be paid on April 30, 2022, and contingent consideration capped at $15.0 million and payable between 2024 and 2026 based on Diamondback Energy’s drilling activity above historical levels. Under the acquisition method of accounting, the acquired assets of Amarillo Rattler, LLC have been recorded at their respective fair values as of the date of the acquisition. Determining the fair value of the assets of Amarillo Ratter, LLC requires judgment and certain assumptions to be made, particularly related to the valuation of acquired customer relationships. The inputs and assumptions related to the customer relationships are categorized as level 3 in the fair value hierarchy. On a historical pro forma basis, our consolidated revenues, net income (loss), total assets, and earnings per unit amounts would not have differed materially had the acquisition been completed on January 1, 2021 rather than April 30, 2021. The following table presents the fair value of the identified assets received and liabilities assumed at the acquisition date (in millions): Consideration Cash (including working capital payment) $ 50.6 Installment payable 10.0 Contingent consideration fair value (1) 6.9 Total consideration: $ 67.5 Purchase price allocation Assets acquired: Current assets (including $1.3 million in cash) $ 1.4 Property and equipment 16.3 Intangible assets 50.6 Other assets, net (2) 0.6 Liabilities assumed: Current liabilities (0.8) Other long-term liabilities (2) (0.6) Net assets acquired $ 67.5 ____________________________ (1) The estimated fair value of the Amarillo Rattler, LLC contingent consideration was calculated in accordance with the fair value guidance contained in ASC 820. There are a number of assumptions and estimates factored into these fair values and actual contingent consideration payments could differ from the estimated fair values. (2) “Other assets, net” and “Other long-term liabilities” consist of the right-of-use asset and lease liability, respectively, recorded through the acquisition of Amarillo Rattler, LLC. (e) Loss on Secured Term Loan Receivable In late May 2019, White Star, the counterparty to our $58.0 million second lien secured term loan receivable, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. White Star defaulted on its May 2019 installment payment prior to filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In November 2019, White Star sold its assets and we did not recover any amounts then owed to us under the second lien secured term loan. As a result, we have recorded a $52.9 million loss in our consolidated statement of operations for the year ended December 31, 2019, which represents a full write-down of the second lien secured term loan. (f) Gas Imbalance Accounting Quantities of natural gas and NGLs over-delivered or under-delivered related to imbalance agreements are recorded monthly as receivables or payables using weighted average prices at the time of the imbalance. These imbalances are typically settled with deliveries of natural gas or NGLs. We had imbalance payables of $16.3 million and $6.1 million at December 31, 2021 and 2020, respectively, which approximate the fair value of these imbalances. We had imbalance receivables of $14.5 million and $7.5 million at December 31, 2021 and 2020, respectively, which are carried at the lower of cost or market value. Imbalance receivables and imbalance payables are included in the line items “Accrued revenue and other” and “Accrued gas, NGLs, condensate, and crude oil purchases,” respectively, on the consolidated balance sheets. (g) Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. (h) Income Taxes We account for deferred income taxes related to the federal and state jurisdictions using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for the future tax benefits attributable to the expected utilization of existing tax net operating loss carryforwards and other types of carryforwards. If the future utilization of some portion of carryforwards is determined to be unlikely, a valuation allowance is provided to reduce the recorded tax benefits from such assets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In the event interest or penalties are incurred with respect to income tax matters, our policy will be to include such items in income tax expense. We record deferred tax assets and liabilities on a net basis on the consolidated balance sheets, with deferred tax assets included in “Other assets, net” and deferred tax liabilities included in “Deferred tax liability, net.” (i) Natural Gas, Natural Gas Liquids, Crude Oil, and Condensate Inventory Our inventories of products consist of natural gas, NGLs, crude oil, and condensate. We report these assets at the lower of cost or market value which is determined by using the first-in, first-out method. (j) Property and Equipment Property and equipment are stated at historical cost less accumulated depreciation. Assets acquired in a business combination are recorded at fair value. Routine repairs and maintenance are charged against income when incurred. Renewals and improvements that extend the useful life or improve the function of the properties are capitalized. Interest costs for material projects are capitalized to property and equipment during the period the assets are undergoing preparation for intended use. The components of property and equipment, net of accumulated depreciation are as follows (in millions): Year Ended December 31, 2021 2020 Transmission assets $ 1,442.2 $ 1,410.5 Gathering systems 4,903.8 4,782.9 Gas processing plants 4,119.1 4,082.1 Other property and equipment 161.0 161.0 Construction in process 94.2 78.6 Property and equipment 10,720.3 10,515.1 Accumulated depreciation (4,332.0) (3,863.0) Property and equipment, net of accumulated depreciation $ 6,388.3 $ 6,652.1 Depreciation Expense. Depreciation is calculated using the straight-line method based on the estimated useful life of each asset, as follows: Useful Lives Transmission assets 20 - 25 years Gathering systems 20 - 25 years Gas processing plants 20 - 25 years Other property and equipment 3 - 25 years Gain or Loss on Disposition. Upon the disposition or retirement of property and equipment, any gain or loss is recognized in operating income in the consolidated statements of operations. For the years ended December 31, 2021, 2020, and 2019, dispositions primarily related to the sale of certain non-core assets. The (gain) loss on disposition of assets are as follows (in millions): Year Ended December 31, 2021 2020 2019 Net book value of assets disposed $ 3.3 $ 36.4 $ 12.4 Less: Proceeds from sales (4.8) (27.6) (14.3) (Gain) loss on disposition of assets $ (1.5) $ 8.8 $ (1.9) Impairment Review . In accordance with ASC 360, Property, Plant, and Equipment , we evaluate long-lived assets of identifiable business activities for potential impairment whenever events or changes in circumstances, or triggering events, indicate that their carrying value may not be recoverable. Triggering events include, but are not limited to, significant changes in the use of the asset group, current operating results that are significantly less than forecasted results, negative industry or economic trends including changes in commodity prices, significant adverse changes in legal or regulatory factors, or an expectation that it is more likely than not that an asset group will be sold before the end of its useful life. The carrying amount of a long-lived asset is not recoverable when it exceeds the undiscounted sum of the future cash flows expected to result from the use and eventual disposition of the asset. Estimates of expected future cash flows represent management’s best estimate based on reasonable and supportable assumptions. When the carrying amount of a long-lived asset is not recoverable, an impairment is recognized equal to the excess of the asset’s carrying value over its fair value, which is based on inputs that are not observable in the market, and thus represent Level 3 inputs. When determining whether impairment of our long-lived assets has occurred, we must estimate the undiscounted cash flows attributable to the asset. Our estimate of cash flows is based on assumptions regarding: • the future fee-based rate of new business or contract renewals; • the purchase and resale margins on natural gas, NGLs, crude oil, and condensate; • the volume of natural gas, NGLs, crude oil, and condensate available to the asset; • markets available to the asset; • operating expenses; and • future natural gas, NGLs, crude oil, and condensate prices. The amount of availability of natural gas, NGLs, crude oil, and condensate to an asset is sometimes based on assumptions regarding future drilling activity, which may be dependent in part on natural gas, NGL, crude oil, and condensate prices. Projections of natural gas, NGL, crude oil, and condensate volumes and future commodity prices are inherently subjective and contingent upon a number of variable factors, including but not limited to: • changes in general economic conditions in regions in which our markets are located; • the availability and prices of natural gas, NGLs, crude oil, and condensate supply; • our ability to negotiate favorable sales agreements; • the risks that natural gas, NGLs, crude oil, and condensate exploration and production activities will not occur or be successful; • our dependence on certain significant customers, producers, and transporters of natural gas, NGLs, crude oil, and condensate; and • competition from other midstream companies, including major energy companies. For the year ended December 31, 2021, we recognized a $0.6 million impairment on property and equipment. For the year ended December 31, 2020, we recognized a $168.0 million impairment on property and equipment related to a portion of our Louisiana reporting segment because the carrying amounts were not recoverable based on our expected future cash flows, and $3.4 million of impairments related to certain cancelled projects. For the year ended December 31, 2019, we recognized a $7.9 million impairment on property and equipment related to certain decommissioned and removed non-core assets. (k) Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and the effective portion of gains or losses on derivative financial instruments that qualify as cash flow hedges pursuant to ASC 815. For additional information about the effect of financial instruments on comprehensive income (loss), see “Note 12—Derivatives.” (l) Equity Method of Accounting We account for investments where we do not control the investment but have the ability to exercise significant influence using the equity method of accounting. Under this method, unconsolidated affiliate investments are initially carried at the acquisition cost, increased by our proportionate share of the investee’s net income and by contributions made, and decreased by our proportionate share of the investee’s net losses and by distributions received. We evaluate our unconsolidated affiliate investments for potential impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. We recognize impairments of our investments as a loss from unconsolidated affiliates on our consolidated statements of operations. We recognized a $31.4 million loss for the year ended December 31, 2019 related to the impairment of the carrying value of the Cedar Cove JV, as we determined that the carrying value of our investment was not recoverable based on the forecasted cash flows from the Cedar Cove JV. For additional information, see “Note 10—Investment in Unconsolidated Affiliates.” (m) Non-controlling Interests We account for investments where we control the investment using the consolidation method of accounting. Under this method, we consolidate all the assets and liabilities of an investment on our consolidated balance sheets and record non-controlling interest for the portion of the investment that we do not own. We include all of an investment’s results of operations on our consolidated statements of operations and record income attributable to non-controlling interests for the portion of the investment that we do not own. Our non-controlling interests for the years ended December 31, 2021, 2020, and 2019 relate to the Series B Preferred Units, the Series C Preferred Units, NGP’s 49.9% ownership of the Delaware Basin JV, and Marathon Petroleum Corporation’s 50.0% ownership interest in the Ascension JV. For periods prior to the Merger, our non-controlling interests also included ENLK’s public common unitholders. (n) Goodwill Goodwill is the cost of an acquisition less the fair value of the net identifiable assets of the acquired business. We evaluated goodwill for impairment annually as of October 31 and whenever events or changes in circumstances indicated it was more likely than not that the fair value of a reporting unit is less than its carrying amount. For additional information regarding our previous assessments of goodwill for impairment, see “Note 3—Goodwill and Intangible Assets.” (o) Intangible Assets Intangible assets associated with customer relationships are amortized on a straight-line basis over the expected period of benefits of the customer relationships, which range from ten Intangibles—Goodwill and Other , we evaluate intangibles for potential impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. For additional information regarding our intangible assets, including our assessment of intangible assets for impairment, see “Note 3—Goodwill and Intangible Assets.” (p) Asset Retirement Obligations We recognize liabilities for retirement obligations associated with our pipelines and processing and fractionation facilities. Such liabilities are recognized when there is a legal obligation associated with the retirement of the assets and the amount can be reasonably estimated. The initial measurement of an asset retirement obligation is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the asset retirement cost. Our retirement obligations include estimated environmental remediation costs that arise from normal operations and are associated with the retirement of the long-lived assets. The asset retirement cost is depreciated using the straight-line depreciation method similar to that used for the associated property and equipment. (q) Leases Effective January 1, 2019, we adopted ASC 842 using the modified retrospective approach whereby we recognized leases on our consolidated balance sheet by recording a right-of-use asset and lease liability. We applied certain practical expedients that were allowed in the adoption of ASC 842, including not reassessing existing contracts for lease arrangements, not reassessing existing lease classification, not recording a right-of-use asset or lease liability for leases of twelve months or less, and not separating lease and non-lease components of a lease arrangement. We evaluate new contracts at inception to determine if the contract conveys the right to control the use of an identified asset for a period of time in exchange for periodic payments. A lease exists if we obtain substantially all of the economic benefits of an asset, and we have the right to direct the use of that asset. When a lease exists, we record a right-of-use asset that represents our right to use the asset over the lease term and a lease liability that represents our obligation to make payments over the lease term. Lease liabilities are recorded at the sum of future lease payments discounted by the collateralized rate we could obtain to lease a similar asset over a similar period, and right-of-use assets are recorded equal to the corresponding lease liability, plus any prepaid or direct costs incurred to enter the lease, less the cost of any incentives received from the lessor. For more information, see “Note 5—Leases.” (r) Derivatives We use derivative instruments to hedge against changes in cash flows related to product price. We generally determine the fair value of swap contracts based on the difference between the derivative’s fixed contract price and the underlying market price at the determination date. The asset or liability related to the derivative instruments is recorded on the balance sheet at the fair value of derivative assets or liabilities in accordance with ASC 815. Changes in fair value of derivative instruments are recorded in gain or loss on derivative activity in the period of change. Realized gains and losses on commodity-related derivatives are recorded as gain or loss on derivative activity within revenues in the consolidated statements of operations in the period incurred. Settlements of derivatives are included in cash flows from operating activities. We periodically enter into interest rate swaps in connection with new debt issuances to hedge variability in interest rates and effectively lock in the benchmark interest rate at the inception of the swap. In April 2019, we entered into $850.0 million of interest rate swaps to manage the interest rate risk associated with our floating-rate, LIBOR-based borrowings. Under this arrangement, we paid a fixed interest rate of 2.28% in exchange for LIBOR-based variable interest through December 2021. These interest rate swaps expired on December 10, 2021. There was no ineffectiveness related to this hedge. During 2021 and 2020, we terminated the interest rate swaps in several increments in connection with repayments of the Term Loan, which was one of our floating-rate, LIBOR-based borrowings. The following table presents the interest rate swaps terminations and the associated cash payments during 2021 and 2020 (in millions): Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 For additional information, see “Note 12—Derivatives.” (s) Concentrations of Credit Risk Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of trade accounts receivable and commodity financial instruments. Management believes the risk i |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | (3) Goodwill and Intangible Assets Goodwill Impairments Goodwill Impairment Analysis for the Year Ended December 31, 2020 During the first quarter of 2020, we determined that a sustained decline in our unit price and weakness in the overall energy sector, driven by low commodity prices and lower consumer demand due to the COVID-19 pandemic, caused a change in circumstances warranting an interim impairment test. Based on these triggering events, we performed a quantitative goodwill impairment analysis on the remaining goodwill in the Permian reporting unit. Based on this analysis, a goodwill impairment loss for our Permian reporting unit in the amount of $184.6 million was recognized as an impairment loss on the consolidated statement of operations for the year ended December 31, 2020. As a result of this impairment loss, we have no goodwill remaining as of December 31, 2020. Goodwill Impairment Analysis for the Year Ended December 31, 2019 During the first quarter of 2019, we recognized a $186.5 million goodwill impairment related to goodwill that had been reallocated from our Corporate reporting unit to our Louisiana reporting unit as a result of the Merger. During the fourth quarter of 2019, we performed a quantitative analysis as of October 31, 2019 for our annual goodwill impairment test. Subsequent to October 31, 2019, we determined that due to a significant decline in our common unit price and the expected reduction in our cash distribution paid to common unitholders, which was announced in January 2020, a change in circumstances had occurred that warranted an additional quantitative impairment test. We recorded a goodwill impairment loss of $125.7 million and $813.4 million in our North Texas and Oklahoma reporting units, respectively. These amounts are included in impairments in the consolidated statement of operations for the year ended December 31, 2019. The goodwill for our North Texas and Oklahoma reporting units primarily related to the goodwill reallocated from our Corporate reporting unit as a result of the Merger in January 2019. Intangible Assets Intangible assets associated with customer relationships are amortized on a straight-line basis over the expected period of benefits of the customer relationships, which range from 10 to 20 years. The weighted average amortization period for intangible assets is 14.9 years. The following table represents our change in carrying value of intangible assets for the periods stated (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Year Ended December 31, 2021 Customer relationships, beginning of period $ 1,794.2 $ (668.8) $ 1,125.4 Customer relationships obtained from acquisition of business 50.6 — 50.6 Amortization expense — (126.3) (126.3) Customer relationships, end of period $ 1,844.8 $ (795.1) $ 1,049.7 Year Ended December 31, 2020 Customer relationships, beginning of period $ 1,795.8 $ (545.9) $ 1,249.9 Amortization expense — (123.5) (123.5) Retirements (1) (1.6) 0.6 (1.0) Customer relationships, end of period $ 1,794.2 $ (668.8) $ 1,125.4 Year Ended December 31, 2019 Customer relationships, beginning of period $ 1,795.8 $ (422.2) $ 1,373.6 Amortization expense — (123.7) (123.7) Customer relationships, end of period $ 1,795.8 $ (545.9) $ 1,249.9 ____________________________ (1) Intangible assets retired as a result of the disposition of certain non-core assets. The following table summarizes our estimated aggregate amortization expense for the next five years and thereafter (in millions): 2022 $ 127.6 2023 127.6 2024 127.6 2025 110.3 2026 106.4 Thereafter 450.2 Total $ 1,049.7 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (4) Related Party Transactions (a) Transactions with Cedar Cove JV For the years ended December 31, 2021, 2020, and 2019, we recorded cost of sales of $17.9 million, $8.7 million, $21.7 million, respectively, related to our purchase of residue gas and NGLs from the Cedar Cove JV subsequent to processing at our Central Oklahoma processing facilities. Additionally, we had accounts payable balances related to transactions with the Cedar Cove JV of $1.6 million and $1.0 million at December 31, 2021 and 2020, respectively. (b) Transactions with GIP For the years ended December 31, 2021 and 2020, we recorded general and administrative expenses of $0.5 million and $0.2 million, respectively, related to personnel secondment services provided by GIP. We did not record any expenses related to transactions with GIP for the year ended December 31, 2019. (c) Transactions with ENLK On January 25, 2019, we completed the Merger, an internal reorganization pursuant to which ENLC owns all of the outstanding common units of ENLK. See “Note 1—Organization and Nature of Business” for more information on the Merger and related transactions. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | (5) Leases The majority of our leases are for the following types of assets: • Office space. Our primary offices are in Dallas, Houston, and Midland, with smaller offices in other locations near our assets. Our office leases are long-term in nature and represent $51.8 million of our lease liability and $27.9 million of our right-of-use asset as of December 31, 2021. Our office leases represented $57.6 million of our lease liability and $32.4 million of our right-of-use asset as of December 31, 2020. These office leases typically include variable lease costs related to utility expenses, which are determined based on our pro-rata share of the building expenses each month and expensed as incurred. • Compression and other field equipment. We pay third parties to provide compressors or other field equipment for our assets. Under these agreements, a third party installs and operates compressor units based on specifications set by us to meet our compression needs at specific locations. While the third party determines which compressors to install and operates and maintains the units, we have the right to control the use of the compressors and are the sole economic beneficiary of the identified assets. These agreements are typically for an initial term of one • Land and land easements. We make periodic payments to lease land or to have access to our assets. Land leases and easements are typically long-term to match the expected useful life of the corresponding asset and represent $15.6 million of our lease liability and $12.6 million of our right-of-use asset as of December 31, 2021. Land and land easement leases represented $15.1 million of our lease liability and $12.5 million of our right-of-use asset as of December 31, 2020. • Other. We rent office equipment and other items that represent $0.1 million of our lease liability and $0.1 million of our right-of-use asset as of December 31, 2021. Office equipment and other items represented $0.3 million of our lease liability and $0.3 million of our right-of-use asset as of December 31, 2020. Lease balances are recorded on the consolidated balance sheets as follows (in millions): Operating leases: December 31, 2021 December 31, 2020 Other assets, net $ 60.1 $ 59.8 Other current liabilities $ 18.1 $ 16.3 Other long-term liabilities $ 67.1 $ 71.3 Other lease information Weighted-average remaining lease term—Operating leases 10.3 years 11.1 years Weighted-average discount rate—Operating leases 4.9 % 5.1 % Certain of our lease agreements have options to extend the lease for a certain period after the expiration of the initial term. We recognize the cost of a lease over the expected total term of the lease, including optional renewal periods that we can reasonably expect to exercise. We do not have material obligations whereby we guarantee a residual value on assets we lease, nor do our lease agreements impose restrictions or covenants that could affect our ability to make distributions. Lease expense is recognized on the consolidated statements of operations as “Operating expenses” and “General and administrative” depending on the nature of the leased asset. Impairments of right-of-use assets are recognized in “Impairments” on the consolidated statements of operations. The components of total lease expense are as follows (in millions): Year Ended December 31, 2021 2020 2019 Finance lease expense: Amortization of right-of-use asset $ — $ — $ 5.2 Interest on lease liability — — 0.1 Operating lease expense: Long-term operating lease expense 21.7 23.1 28.7 Short-term lease expense 17.5 22.1 32.0 Variable lease expense 15.6 11.8 7.7 Impairments 0.2 6.8 — Total lease expense $ 55.0 $ 63.8 $ 68.4 Impairments Right-of-Use Asset Impairment Analysis for the Year Ended December 31, 2021 During the fourth quarter of 2021, we entered into a sublease agreement for a portion of our Houston office that will be effective in 2022. We evaluated the related right-of-use asset for impairment by comparing the estimated fair value of the right-of-use asset to its carrying value. The estimated fair value was calculated using a discounted cash flow analysis that utilized Level 3 inputs, which included future cash flows based on the terms of the sublease and a discount rate derived from market data. As the carrying value of the right-of-use asset exceeded the estimated fair value, we have recognized impairment expense of $0.2 million for the year ended December 31, 2021. Right-of-Use Asset Impairment Analysis for the Year Ended December 31, 2020 During the fourth quarter of 2020, we determined that we would cease using a portion of our Dallas, Houston, and Midland offices. We are attempting to sublease the vacated space; however, as we believe the terms of a sublease would be below our current rental rates, we evaluated the related right-of-use assets for impairment by comparing the estimated fair values of the right-of-use assets to their carrying values. Estimated fair values were calculated using a discounted cash flow analysis that utilized Level 3 inputs, which included estimated future cash flows and a discount rate derived from market data. As the carrying value of each right-of-use asset exceeded its estimated fair value, we recognized impairment expense of $6.8 million for the year ended December 31, 2020. Lease Maturities The following table summarizes the maturity of our lease liability as of December 31, 2021 (in millions): Total 2022 2023 2024 2025 2026 Thereafter Undiscounted operating lease liability $ 115.6 $ 21.1 $ 15.3 $ 10.1 $ 9.8 $ 8.9 $ 50.4 Reduction due to present value (30.4) (3.7) (3.2) (2.8) (2.4) (2.0) (16.3) Operating lease liability $ 85.2 $ 17.4 $ 12.1 $ 7.3 $ 7.4 $ 6.9 $ 34.1 |
Leases | (5) Leases The majority of our leases are for the following types of assets: • Office space. Our primary offices are in Dallas, Houston, and Midland, with smaller offices in other locations near our assets. Our office leases are long-term in nature and represent $51.8 million of our lease liability and $27.9 million of our right-of-use asset as of December 31, 2021. Our office leases represented $57.6 million of our lease liability and $32.4 million of our right-of-use asset as of December 31, 2020. These office leases typically include variable lease costs related to utility expenses, which are determined based on our pro-rata share of the building expenses each month and expensed as incurred. • Compression and other field equipment. We pay third parties to provide compressors or other field equipment for our assets. Under these agreements, a third party installs and operates compressor units based on specifications set by us to meet our compression needs at specific locations. While the third party determines which compressors to install and operates and maintains the units, we have the right to control the use of the compressors and are the sole economic beneficiary of the identified assets. These agreements are typically for an initial term of one • Land and land easements. We make periodic payments to lease land or to have access to our assets. Land leases and easements are typically long-term to match the expected useful life of the corresponding asset and represent $15.6 million of our lease liability and $12.6 million of our right-of-use asset as of December 31, 2021. Land and land easement leases represented $15.1 million of our lease liability and $12.5 million of our right-of-use asset as of December 31, 2020. • Other. We rent office equipment and other items that represent $0.1 million of our lease liability and $0.1 million of our right-of-use asset as of December 31, 2021. Office equipment and other items represented $0.3 million of our lease liability and $0.3 million of our right-of-use asset as of December 31, 2020. Lease balances are recorded on the consolidated balance sheets as follows (in millions): Operating leases: December 31, 2021 December 31, 2020 Other assets, net $ 60.1 $ 59.8 Other current liabilities $ 18.1 $ 16.3 Other long-term liabilities $ 67.1 $ 71.3 Other lease information Weighted-average remaining lease term—Operating leases 10.3 years 11.1 years Weighted-average discount rate—Operating leases 4.9 % 5.1 % Certain of our lease agreements have options to extend the lease for a certain period after the expiration of the initial term. We recognize the cost of a lease over the expected total term of the lease, including optional renewal periods that we can reasonably expect to exercise. We do not have material obligations whereby we guarantee a residual value on assets we lease, nor do our lease agreements impose restrictions or covenants that could affect our ability to make distributions. Lease expense is recognized on the consolidated statements of operations as “Operating expenses” and “General and administrative” depending on the nature of the leased asset. Impairments of right-of-use assets are recognized in “Impairments” on the consolidated statements of operations. The components of total lease expense are as follows (in millions): Year Ended December 31, 2021 2020 2019 Finance lease expense: Amortization of right-of-use asset $ — $ — $ 5.2 Interest on lease liability — — 0.1 Operating lease expense: Long-term operating lease expense 21.7 23.1 28.7 Short-term lease expense 17.5 22.1 32.0 Variable lease expense 15.6 11.8 7.7 Impairments 0.2 6.8 — Total lease expense $ 55.0 $ 63.8 $ 68.4 Impairments Right-of-Use Asset Impairment Analysis for the Year Ended December 31, 2021 During the fourth quarter of 2021, we entered into a sublease agreement for a portion of our Houston office that will be effective in 2022. We evaluated the related right-of-use asset for impairment by comparing the estimated fair value of the right-of-use asset to its carrying value. The estimated fair value was calculated using a discounted cash flow analysis that utilized Level 3 inputs, which included future cash flows based on the terms of the sublease and a discount rate derived from market data. As the carrying value of the right-of-use asset exceeded the estimated fair value, we have recognized impairment expense of $0.2 million for the year ended December 31, 2021. Right-of-Use Asset Impairment Analysis for the Year Ended December 31, 2020 During the fourth quarter of 2020, we determined that we would cease using a portion of our Dallas, Houston, and Midland offices. We are attempting to sublease the vacated space; however, as we believe the terms of a sublease would be below our current rental rates, we evaluated the related right-of-use assets for impairment by comparing the estimated fair values of the right-of-use assets to their carrying values. Estimated fair values were calculated using a discounted cash flow analysis that utilized Level 3 inputs, which included estimated future cash flows and a discount rate derived from market data. As the carrying value of each right-of-use asset exceeded its estimated fair value, we recognized impairment expense of $6.8 million for the year ended December 31, 2020. Lease Maturities The following table summarizes the maturity of our lease liability as of December 31, 2021 (in millions): Total 2022 2023 2024 2025 2026 Thereafter Undiscounted operating lease liability $ 115.6 $ 21.1 $ 15.3 $ 10.1 $ 9.8 $ 8.9 $ 50.4 Reduction due to present value (30.4) (3.7) (3.2) (2.8) (2.4) (2.0) (16.3) Operating lease liability $ 85.2 $ 17.4 $ 12.1 $ 7.3 $ 7.4 $ 6.9 $ 34.1 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (6) Long-Term Debt As of December 31, 2021 and 2020, long-term debt consisted of the following (in millions): December 31, 2021 December 31, 2020 Outstanding Principal Premium (Discount) Long-Term Debt Outstanding Principal Premium (Discount) Long-Term Debt Term Loan due 2021 (1) $ — $ — $ — $ 350.0 $ — $ 350.0 Consolidated Credit Facility due 2024 (2) 15.0 — 15.0 — — — AR Facility due 2024 (3) 350.0 — 350.0 250.0 — 250.0 ENLK’s 4.40% Senior unsecured notes due 2024 521.8 0.7 522.5 521.8 1.1 522.9 ENLK’s 4.15% Senior unsecured notes due 2025 720.8 (0.4) 720.4 720.8 (0.6) 720.2 ENLK’s 4.85% Senior unsecured notes due 2026 491.0 (0.3) 490.7 491.0 (0.4) 490.6 ENLC’s 5.625% Senior unsecured notes due 2028 500.0 — 500.0 500.0 — 500.0 ENLC’s 5.375% Senior unsecured notes due 2029 498.7 — 498.7 498.7 — 498.7 ENLK’s 5.60% Senior unsecured notes due 2044 350.0 (0.2) 349.8 350.0 (0.2) 349.8 ENLK’s 5.05% Senior unsecured notes due 2045 450.0 (5.5) 444.5 450.0 (5.7) 444.3 ENLK’s 5.45% Senior unsecured notes due 2047 500.0 (0.1) 499.9 500.0 (0.1) 499.9 Debt classified as long-term $ 4,397.3 $ (5.8) 4,391.5 $ 4,632.3 $ (5.9) 4,626.4 Debt issuance costs (4) (27.8) (32.6) Less: Current maturities of long-term debt (1) — (349.8) Long-term debt, net of unamortized issuance cost $ 4,363.7 $ 4,244.0 ____________________________ (1) Bore interest prior to its maturity based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was 1.7% at December 31, 2020. The Term Loan was repaid at maturity on December 10, 2021. The outstanding principal balance, net of debt issuance costs, was classified as “Current maturities of long-term debt” on the consolidated balance sheet as of December 31, 2020. (2) Bears interest based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was 3.9% at December 31, 2021. (3) Bears interest based on LMIR and/or LIBOR plus an applicable margin. The effective interest rate was 1.2% and 2.0% at December 31, 2021 and 2020, respectively. (4) Net of accumulated amortization of $18.4 million and $14.1 million at December 31, 2021 and 2020, respectively. Maturities Maturities for the long-term debt as of December 31, 2021 are as follows (in millions): 2022 $ — 2023 — 2024 886.8 2025 720.8 2026 491.0 Thereafter 2,298.7 Subtotal 4,397.3 Less: net discount (5.8) Less: debt issuance cost (27.8) Long-term debt, net of unamortized issuance cost $ 4,363.7 Term Loan On December 11, 2018, ENLK entered into the Term Loan with Bank of America, N.A., as Administrative Agent, Bank of Montreal and Royal Bank of Canada, as Co-Syndication Agents, Citibank, N.A. and Wells Fargo Bank, National Association, as Co-Documentation Agents, and the lenders party thereto. In December 2020, May 2021, and September 2021, we repaid $500.0 million, $100.0 million, and $100.0 million, respectively, of the borrowings under the Term Loan. The remaining $150.0 million of the Term Loan was repaid at maturity on December 10, 2021. Consolidated Credit Facility The Consolidated Credit Facility permits ENLC to borrow up to $1.75 billion on a revolving credit basis and includes a $500.0 million letter of credit subfacility. The Consolidated Credit Facility became available for borrowings and letters of credit upon closing of the Merger. In addition, ENLK became a guarantor under the Consolidated Credit Facility upon the closing of the Merger. In the event that ENLC’s obligations under the Consolidated Credit Facility are accelerated due to a default, ENLK will be liable for the entire outstanding balance and 105% of the outstanding letters of credit under the Consolidated Credit Facility. There was $15.0 million in outstanding borrowings under the Consolidated Credit Facility and $41.3 million outstanding letters of credit as of December 31, 2021. The Consolidated Credit Facility will mature on January 25, 2024, unless ENLC requests, and the requisite lenders agree, to extend it pursuant to its terms. The Consolidated Credit Facility contains certain financial, operational, and legal covenants. The financial covenants are tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. The financial covenants include (i) maintaining a ratio of consolidated EBITDA (as defined in the Consolidated Credit Facility, which term includes projected EBITDA from certain capital expansion projects) to consolidated interest charges of no less than 2.5 to 1.0 at all times prior to the occurrence of an investment grade event (as defined in the Consolidated Credit Facility) and (ii) maintaining a ratio of consolidated indebtedness to consolidated EBITDA of no more than 5.0 to 1.0. Under the terms of the Consolidated Credit Facility, if we consummate an acquisition in which the aggregate purchase price is $50.0 million or more, we can elect to increase the maximum allowed ratio of consolidated indebtedness to consolidated EBITDA to 5.5 to 1.0 for the quarter in which the acquisition occurs and the three subsequent quarters. In April 2021, we completed the acquisition of Amarillo Rattler, LLC with an aggregate purchase price in excess of $50.0 million and elected to increase the maximum allowed ratio of consolidated indebtedness to consolidated EBITDA to 5.5 to 1.0 through the first quarter of 2022. Borrowings under the Consolidated Credit Facility bear interest at ENLC’s option at the Eurodollar Rate (LIBOR) plus an applicable margin (ranging from 1.125% to 2.00%) or the Base Rate (the highest of the Federal Funds Rate plus 0.50%, the 30-day Eurodollar Rate plus 1.0% or the administrative agent’s prime rate) plus an applicable margin (ranging from 0.125% to 1.00%). The applicable margins vary depending on ENLC’s debt rating. Upon breach by ENLC of certain covenants governing the Consolidated Credit Facility, amounts outstanding under the Consolidated Credit Facility, if any, may become due and payable immediately. At December 31, 2021, we were in compliance with and expect to be in compliance with the financial covenants of the Consolidated Credit Facility for at least the next twelve months. AR Facility On October 21, 2020, EnLink Midstream Funding, LLC, a bankruptcy-remote special purpose entity that is an indirect subsidiary of ENLC (the “SPV”) entered into the AR Facility to borrow up to $250.0 million. In connection with the AR Facility, certain subsidiaries of ENLC sold and contributed, and will continue to sell or contribute, their accounts receivable to the SPV to be held as collateral for borrowings under the AR Facility. The SPV’s assets are not available to satisfy the obligations of ENLC or any of its affiliates. On February 26, 2021, the SPV entered into the first amendment to the AR Facility that, among other things: (i) increased the AR Facility limit and lender commitments by $50.0 million to $300.0 million, (ii) reduced the Adjusted LIBOR and LMIR (each as defined in the AR Facility) minimum floor to zero, rather than the previous 0.375%, and (iii) reduced the effective drawn fee to 1.25% rather than the previous 1.625%. On September 24, 2021, the SPV entered into the second amendment to the AR Facility that, among other things: (i) increased the AR Facility limit and lender commitments by $50.0 million to $350.0 million, (ii) extended the scheduled termination date of the facility from October 20, 2023 to September 24, 2024, and (iii) reduced the effective drawn fee to 1.10% rather than the previous 1.25%. Since our investment in the SPV is not sufficient to finance its activities without additional support from us, the SPV is a variable interest entity. We are the primary beneficiary of the SPV because we have the power to direct the activities that most significantly affect its economic performance and we are obligated to absorb its losses or receive its benefits from operations. Since we are the primary beneficiary of the SPV, we consolidate its assets and liabilities, which consist primarily of billed and unbilled accounts receivable of $773.6 million and long-term debt of $350.0 million as of December 31, 2021. The amount available for borrowings at any one time under the AR Facility is limited to a borrowing base amount calculated based on the outstanding balance of eligible receivables held as collateral, subject to certain reserves, concentration limits, and other limitations. As of December 31, 2021, the AR Facility had a borrowing base of $350.0 million. Borrowings under the AR Facility bear interest (based on LIBOR or LMIR (as defined in the AR Facility) or after a benchmark transition event, the applicable SOFR (as defined in the AR Facility) plus a benchmark replacement adjustment) plus a drawn fee in the amount of 1.10% at December 31, 2021. The SPV also pays a fee on the undrawn committed amount of the AR Facility. Interest and fees payable by the SPV under the AR Facility are due monthly. The AR Facility is scheduled to terminate on September 24, 2024, unless extended or earlier terminated in accordance with its terms, at which time no further advances will be available and the obligations under the AR Facility must be repaid in full by no later than (i) the date that is ninety (90) days following such date or (ii) such earlier date on which the loans under the AR Facility become due and payable. The AR Facility includes covenants, indemnification provisions, and events of default, including those providing for termination of the AR Facility and the acceleration of amounts owed by the SPV under the AR Facility if, among other things, a borrowing base deficiency exists, there is an event of default under the Consolidated Credit Facility or certain other indebtedness, certain events negatively affecting the overall credit quality of the receivables held as collateral occur, a change of control occurs, or if the consolidated leverage ratio of ENLC exceeds limits identical to those in the Consolidated Credit Facility. At December 31, 2021, we were in compliance with and expect to be in compliance with the financial covenants of the AR Facility for at least the next twelve months. Issuances and Redemptions of Senior Unsecured Notes On December 14, 2020, ENLC issued $500.0 million in aggregate principal amount of ENLC’s 5.625% senior unsecured notes due January 15, 2028 (the “2028 Notes”) at a price to the public of 100% of their face value. Interest payments on the 2028 Notes are payable on January 15 and July 15 of each year. The 2028 Notes are fully and unconditionally guaranteed by ENLK. Net proceeds of approximately $494.7 million were used to repay a portion of the borrowings under the Term Loan, which matured in December 2021. All interest payments for senior unsecured notes are due semi-annually, in arrears. Senior Unsecured Notes Redemption Provisions Each issuance of the senior unsecured notes may be fully or partially redeemed prior to an early redemption date (see “Early Redemption Date” in table below) at a redemption price equal to the greater of: (i) 100% of the principal amount of the notes to be redeemed; or (ii) the sum of the remaining scheduled payments of principal and interest on the respective notes to be redeemed that would be due after the related redemption date but for such redemption (exclusive of interest accrued to, but excluding the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus a specified basis point premium (see “Basis Point Premium” in the table below); plus accrued and unpaid interest to, but excluding, the redemption date. At any time on or after the Early Redemption Date, the senior unsecured notes may be fully or partially redeemed at a redemption price equal to 100% of the principal amount of the applicable notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. See applicable redemption provision terms below: Issuance Maturity Date of Notes Early Redemption Date Basis Point Premium 2024 Notes April 1, 2024 Prior to January 1, 2024 25 Basis Points 2025 Notes June 1, 2025 Prior to March 1, 2025 30 Basis Points 2026 Notes July 15, 2026 Prior to April 15, 2026 50 Basis Points 2028 Notes January 15, 2028 Prior to July 15, 2027 50 Basis Points 2029 Notes June 1, 2029 Prior to March 1, 2029 50 Basis Points 2044 Notes April 1, 2044 Prior to October 1, 2043 30 Basis Points 2045 Notes April 1, 2045 Prior to October 1, 2044 30 Basis Points 2047 Notes June 1, 2047 Prior to December 1, 2046 40 Basis Points Senior Unsecured Notes Indentures The indentures governing the senior unsecured notes contain covenants that, among other things, limit ENLC’s and ENLK’s ability to create or incur certain liens or consolidate, merge, or transfer all or substantially all of ENLC’s and ENLK’s assets. The indenture governing the 2028 Notes provides that if a Change of Control Triggering Event (as defined in the indenture) occurs, ENLC must offer to repurchase the 2028 Notes at a price equal to 101% of the principal amount of the 2028 Notes, plus accrued and unpaid interest to, but excluding, the date of repurchase. Each of the following is an event of default under the indentures: • failure to pay any principal or interest when due; • failure to observe any other agreement, obligation, or other covenant in the indenture, subject to the cure periods for certain failures; and • bankruptcy or other insolvency events involving ENLC and ENLK. If an event of default relating to bankruptcy or other insolvency events occurs, the senior unsecured notes will immediately become due and payable. If any other event of default exists under the indenture, the trustee under the indenture or the holders of the senior unsecured notes may accelerate the maturity of the senior unsecured notes and exercise other rights and remedies. At December 31, 2021, ENLC and ENLK were in compliance and expect to be in compliance with the covenants in the senior unsecured notes for at least the next twelve months. Senior Unsecured Notes Repurchases For the year ended December 31, 2020, we and ENLK made aggregate payments to partially repurchase the 2024, 2025, 2026, and 2029 Notes in open market transactions. For the year ended December 31, 2021, we and ENLK did not repurchase any senior notes. Activity related to the 2020 partial repurchases of our outstanding debt consisted of the following (in millions): Year Ended December 31, 2020 Debt repurchased $ 67.7 Aggregate payments (36.0) Net discount on repurchased debt (0.3) Accrued interest on repurchased debt 0.6 Gain on extinguishment of debt $ 32.0 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes The components of our income tax expense are as follows (in millions): Year Ended December 31, 2021 2020 2019 Current income tax expense $ (0.8) $ (1.1) $ — Deferred tax expense (24.6) (142.1) (6.9) Total income tax expense $ (25.4) $ (143.2) $ (6.9) The following schedule reconciles total income tax expense and the amount calculated by applying the statutory U.S. federal tax rate to income before income taxes (in millions): Year Ended December 31, 2021 2020 2019 Expected income tax benefit (expense) based on federal statutory tax rate $ (10.0) $ 58.5 $ 233.6 State income tax benefit (expense), net of federal benefit (1.4) 6.5 27.0 Unit-based compensation (1) (3.1) (6.0) (2.2) Non-deductible expense related to impairments — (43.4) (264.5) Statutory rate changes (2)(3) (10.2) — — Change in valuation allowance (3) 1.7 (153.3) — Other (2.4) (5.5) (0.8) Total income tax expense $ (25.4) $ (143.2) $ (6.9) ____________________________ (1) Related to book-to-tax differences recorded upon the vesting of restricted incentive units. (2) Effective January 1, 2022, Oklahoma House Bill 2960 resulted in a change in the corporate income tax rate from 6% to 4% and Louisiana Senate Bill No. 159 resulted in a change in the corporate income tax rate from 8% to 7.5%. Accordingly, we recorded deferred tax expense related to our Oklahoma and Louisiana operations in the amount of $7.6 million and $2.6 million, respectively, for the year ended December 31, 2021 due to a remeasurement of deferred tax assets. (3) Includes the remeasurement of the state deferred tax liabilities, but were partially offset by a change in state apportionment, and its impact on the valuation allowance for the year ended December 31, 2021. Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred tax liabilities, net of deferred tax assets, are included in “Deferred tax liability, net” in the consolidated balance sheets. Our deferred income tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in millions): December 31, 2021 December 31, 2020 Deferred income tax assets: Federal net operating loss carryforward $ 573.6 $ 488.3 State net operating loss carryforward 59.6 61.0 Total deferred tax assets, gross 633.2 549.3 Valuation allowance (151.6) (153.3) Total deferred tax assets, net of valuation allowance 481.6 396.0 Deferred tax liabilities: Property, plant, equipment, and intangible assets (1) (619.1) (504.6) Total deferred tax liabilities (619.1) (504.6) Deferred tax liability, net $ (137.5) $ (108.6) ____________________________ (1) Includes our investment in ENLK and primarily relates to differences between the book and tax bases of property and equipment . As a result of the Merger, we acquired all issued and outstanding ENLK common units that were not already held by us or our subsidiaries in exchange for the issuance of ENLC common units. This was a taxable exchange to our unitholders, and we received a step-up in tax basis of the underlying assets acquired. In accordance with ASC 810, Consolidation , the step-up in our basis reduced our deferred tax liability by $399.0 million at the time of the Merger. As of December 31, 2021, we had federal net operating loss (“NOL”) carryforwards of $2.7 billion that represent a net deferred tax asset of $573.6 million. As of December 31, 2021, we had state NOL carryforwards of $1.3 billion that represent a net deferred tax asset of $59.6 million. These carryforwards will begin expiring in 2028 through 2040. Federal NOLs incurred in 2018 and in future years (approximately $2.5 billion of our federal NOL carryforwards) may be carried forward indefinitely, but the deductibility of such federal NOLs is limited, while federal NOLs incurred prior to 2018 (approximately $0.2 billion of our NOL carryforwards) may be carried forward for only twenty years, but the deductibility of such NOL carryforwards generally is not limited unless we were to undergo a Section 382 “ownership change.” A valuation allowance is established to reduce deferred tax assets if all, or some portion, of such assets will more than likely not be realized. We established a valuation allowance of $153.3 million as of December 31, 2020, primarily related to federal and state tax operating loss carryforwards for which we do not believe a tax benefit is more likely than not to be realized. For the year ended December 31, 2021, we recorded a $1.7 million valuation allowance adjustment. As of December 31, 2021, management believes it is more likely than not that the Company will realize the benefits of the deferred tax assets, net of valuation allowance. |
Certain Provisions of the Partn
Certain Provisions of the Partnership Agreement | 12 Months Ended |
Dec. 31, 2021 | |
Partners' Capital [Abstract] | |
Certain Provisions of the Partnership Agreement | (8) Certain Provisions of the Partnership Agreement (a) Series B Preferred Units Issuance and Ownership In January 2016, ENLK issued an aggregate of 50,000,000 Series B Preferred Units representing ENLK limited partner interests to Enfield in a private placement for a cash purchase price of $15.00 per Series B Preferred Unit (the “Issue Price”). On August 4, 2021, Enfield Holdings, L.P. (“Enfield”) sold all of its Series B Preferred Units and ENLC Class C Common Units representing limited liability company interests in ENLC to Brookfield Infrastructure Partners L.P. and funds managed by Oaktree Capital Management, L.P. Redemption In December 2021, we redeemed 3,300,330 Series B Preferred Units for total consideration of $50.0 million plus accrued distributions. In addition, upon such redemption, a corresponding number of ENLC Class C Common Units were automatically cancelled. The redemption price represents 101% of the preferred units’ par value. In connection with the Series B Preferred Unit redemption, we have agreed with the holders of the Series B Preferred Units that we will pay cash in lieu of making a quarterly PIK distribution through the distribution declared for the fourth quarter of 2022. Conversion and Distributions Series B Preferred Units are exchangeable for ENLC common units in an amount equal to the number of outstanding Series B Preferred Units outstanding multiplied by the exchange ratio of 1.15, subject to certain adjustments (the “Series B Exchange Ratio”). The exchange is subject to ENLK’s option to pay cash instead of issuing additional ENLC common units, and can occur in whole or in part at the option of the holder of the Series B Preferred Units at any time, or in whole at our option, provided the daily volume-weighted average closing price of the ENLC common units for the 30 trading days ending two The holder of the Series B Preferred Units is entitled to quarterly cash distributions and distributions in-kind of additional Series B Preferred Units. The quarterly in-kind distribution (the “Series B PIK Distribution”) equals the greater of (A) 0.0025 Series B Preferred Units per Series B Preferred Unit and (B) the number of Series B Preferred Units equal to the quotient of (x) the excess (if any) of (1) the distribution that would have been payable by ENLC had the Series B Preferred Units been exchanged for ENLC common units but applying a one-to-one exchange ratio (subject to certain adjustments) instead of the Series B Exchange Ratio, over (2) $0.28125 per Series B Preferred Unit (the “Cash Distribution Component”), divided by (y) the Issue Price. Except as described above with respect to distributions made until the distribution declared for the fourth quarter of 2022, the quarterly cash distribution (the “Series B Cash Distribution”) consists of the Cash Distribution Component plus an amount in cash that will be determined based on a comparison of the value (applying the Issue Price) of (i) the Series B PIK Distribution and (ii) the Series B Preferred Units that would have been distributed in the Series B PIK Distribution if such calculation applied the Series B Exchange Ratio instead of the one-to-one ratio (subject to certain adjustments). A summary of the distribution activity relating to the Series B Preferred Units for the years ended December 31, 2021, 2020, and 2019 is provided below: Declaration period Distribution Cash distribution Date paid/payable 2021 First Quarter of 2021 150,871 $ 17.0 May 14, 2021 Second Quarter of 2021 151,248 $ 17.0 August 13, 2021 Third Quarter of 2021 151,626 $ 17.1 November 12, 2021 Fourth Quarter of 2021 — $ 19.2 February 11, 2022 (1) 2020 First Quarter of 2020 149,371 $ 16.8 May 13, 2020 Second Quarter of 2020 149,745 $ 16.8 August 13, 2020 Third Quarter of 2020 150,119 $ 16.9 November 13, 2020 Fourth Quarter of 2020 150,494 $ 16.9 February 12, 2021 2019 First Quarter of 2019 147,887 $ 16.7 May 14, 2019 Second Quarter of 2019 148,257 $ 17.1 August 13, 2019 Third Quarter of 2019 148,627 $ 17.1 November 13, 2019 Fourth Quarter of 2019 148,999 $ 16.8 February 13, 2020 ____________________________ (1) In December 2021 and January 2022, we paid $0.9 million and $1.0 million, respectively, of accrued distributions on the Series B Preferred Units redeemed. The remaining distribution of $17.3 million related to the fourth quarter of 2021 will be payable February 11, 2022. See “Note 18—Subsequent Event” for more information regarding the January 2022 Series B Preferred Unit redemption. (b) Series C Preferred Units In September 2017, ENLK issued 400,000 Series C Preferred Units representing ENLK limited partner interests at a price to the public of $1,000 per unit. The Series C Preferred Units represent perpetual equity interests in ENLK and, unlike ENLK’s indebtedness, will not give rise to a claim for payment of a principal amount at a particular date. As to the payment of distributions and amounts payable on a liquidation event, the Series C Preferred Units rank senior to ENLK’s common units and to each other class of limited partner interests or other equity securities established after the issue date of the Series C Preferred Units that is not expressly made senior or on parity with the Series C Preferred Units. The Series C Preferred Units rank junior to the Series B Preferred Units with respect to the payment of distributions, and junior to the Series B Preferred Units and all current and future indebtedness with respect to amounts payable upon a liquidation event. At any time on or after December 15, 2022, ENLK may redeem, at ENLK’s option, in whole or in part, the Series C Preferred Units at a redemption price in cash equal to $1,000 per Series C Preferred Unit plus an amount equal to all accumulated and unpaid distributions, whether or not declared. ENLK may undertake multiple partial redemptions. In addition, at any time within 120 days after the conclusion of any review or appeal process instituted by ENLK following certain rating agency events, ENLK may redeem, at ENLK’s option, the Series C Preferred Units in whole at a redemption price in cash per unit equal to $1,020 plus an amount equal to all accumulated and unpaid distributions, whether or not declared. Distributions on the Series C Preferred Units accrue and are cumulative from the date of original issue and payable semi-annually in arrears on the 15th day of June and December of each year through and including December 15, 2022 and, thereafter, quarterly in arrears on the 15th day of March, June, September, and December of each year, in each case, if and when declared by the General Partner out of legally available funds for such purpose. The initial distribution rate for the Series C Preferred Units from and including the date of original issue to, but not including, December 15, 2022 is 6.0% per annum. On and after December 15, 2022, distributions on the Series C Preferred Units will accumulate for each distribution period at a percentage of the $1,000 liquidation preference per unit equal to an annual floating rate of the three-month LIBOR plus a spread |
Members' Equity
Members' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Members' Equity | (9) Members’ Equity (a) Common Unit Repurchase Program In November 2020, the board of directors of the Managing Member authorized a common unit repurchase program for the repurchase of up to $100.0 million of outstanding ENLC common units and reauthorized such program in April 2021. The Board reauthorized ENLC’s common unit repurchase program and reset the amount available for repurchases of outstanding common units at up to $100.0 million effective January 1, 2022. Repurchases under the common unit repurchase program will be made, in accordance with applicable securities laws, from time to time in open market or private transactions and may be made pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act. The repurchases will depend on market conditions and may be discontinued at any time. For the year ended December 31, 2021, ENLC repurchased 6,091,001 outstanding ENLC common units for an aggregate cost, including commissions, of $40.1 million, or an average of $6.59 per common unit. For the year ended December 31, 2020, ENLC repurchased 383,614 outstanding ENLC common units for an aggregate cost, including commissions, of $1.2 million, or an average of $3.02 per common unit. (b) Issuance of ENLC Common Units related to the Merger In connection with the consummation of the Merger, we issued 304,822,035 ENLC common units in exchange for all of the outstanding ENLK common units not previously owned by us. (c) ENLC Equity Distribution Agreement On February 22, 2019, ENLC entered into the ENLC EDA with the ENLC Sales Agents to sell up to $400.0 million in aggregate gross sales of ENLC common units from time to time through an “at the market” equity offering program. Under the ENLC EDA, ENLC may also sell common units to any ENLC Sales Agent as principal for the ENLC Sales Agent’s own account at a price agreed upon at the time of sale. ENLC has no obligation to sell any ENLC common units under the ENLC EDA and may at any time suspend solicitation and offers under the ENLC EDA. As of February 9, 2022, ENLC has not sold any common units under the ENLC EDA. (d) Earnings Per Unit and Dilution Computations As required under ASC 260, Earnings Per Share , unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities for earnings per unit calculations. The following table reflects the computation of basic and diluted earnings per unit for the periods presented (in millions, except per unit amounts): Year Ended December 31, 2021 2020 2019 Distributed earnings allocated to: Common units (1) $ 192.5 $ 183.5 $ 479.0 Unvested restricted units (1) 4.5 3.1 5.7 Total distributed earnings $ 197.0 $ 186.6 $ 484.7 Undistributed loss allocated to: Common units $ (170.6) $ (598.4) $ (1,584.8) Unvested restricted units (4.0) (9.7) (19.2) Total undistributed loss $ (174.6) $ (608.1) $ (1,604.0) Net income (loss) attributable to ENLC allocated to: Common units $ 21.9 $ (414.9) $ (1,105.8) Unvested restricted units 0.5 (6.6) (13.5) Total net income (loss) attributable to ENLC $ 22.4 $ (421.5) $ (1,119.3) Basic and diluted net income (loss) per unit attributable to ENLC: Basic $ 0.05 $ (0.86) $ (2.41) Diluted $ 0.05 $ (0.86) $ (2.41) ____________________________ (1) Represents distribution activity consistent with the distribution activity table below. The following are the unit amounts used to compute the basic and diluted earnings per unit for the periods presented (in millions): Year Ended December 31, 2021 2020 2019 Basic weighted average units outstanding: Weighted average common units outstanding 488.8 489.3 463.9 Diluted weighted average units outstanding: Weighted average basic common units outstanding 488.8 489.3 463.9 Dilutive effect of non-vested restricted units (1) 5.5 — — Total weighted average diluted common units outstanding 494.3 489.3 463.9 ____________________________ (1) For the years ended December 31, 2020 and 2019, all common unit equivalents were antidilutive because a net loss existed for those periods. All outstanding units were included in the computation of diluted earnings per unit and weighted based on the number of days such units were outstanding during the period presented. (e) Distributions A summary of our distribution activity related to the ENLC common units for the years ended December 31, 2021, 2020, and 2019, respectively, is provided below: Declaration period Distribution/unit Date paid/payable 2021 First Quarter of 2021 $ 0.09375 May 14, 2021 Second Quarter of 2021 $ 0.09375 August 13, 2021 Third Quarter of 2021 $ 0.09375 November 12, 2021 Fourth Quarter of 2021 $ 0.11250 February 11, 2022 2020 First Quarter of 2020 $ 0.09375 May 13, 2020 Second Quarter of 2020 $ 0.09375 August 13, 2020 Third Quarter of 2020 $ 0.09375 November 13, 2020 Fourth Quarter of 2020 $ 0.09375 February 12, 2021 2019 First Quarter of 2019 $ 0.279 May 14, 2019 Second Quarter of 2019 $ 0.283 August 13, 2019 Third Quarter of 2019 $ 0.283 November 13, 2019 Fourth Quarter of 2019 $ 0.1875 February 13, 2020 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliates | (10) Investment in Unconsolidated Affiliates As of December 31, 2021, our unconsolidated investments consisted of a 38.75% ownership in GCF and a 30% ownership in the Cedar Cove JV. The following table shows the activity related to our investment in unconsolidated affiliates for the periods indicated (in millions): Year Ended December 31, 2021 2020 2019 GCF Distributions $ 3.5 $ 1.6 $ 19.2 Equity in income (loss) $ (9.1) $ 3.0 $ 16.5 Cedar Cove JV Distributions $ 0.4 $ 0.5 $ 1.0 Equity in loss (1) $ (2.4) $ (2.4) $ (33.3) Total Distributions $ 3.9 $ 2.1 $ 20.2 Equity in income (loss) (1) $ (11.5) $ 0.6 $ (16.8) ___________________________ (1) Includes a loss of $31.4 million for the year ended December 31, 2019 related to the impairment of the carrying value of the Cedar Cove JV, as we determined that the carrying value of our investment was not recoverable based on the forecasted cash flows from the Cedar Cove JV. The following table shows the balances related to our investment in unconsolidated affiliates as of December 31, 2021 and 2020 (in millions): December 31, 2021 December 31, 2020 GCF $ 28.0 $ 40.6 Cedar Cove JV (1) (1.8) 1.0 Total investment in unconsolidated affiliates $ 26.2 $ 41.6 ___________________________ |
Employee Incentive Plans
Employee Incentive Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Employee Incentive Plans | (11) Employee Incentive Plans (a) Long-Term Incentive Plans We account for unit-based compensation in accordance with ASC 718, which requires that compensation related to all unit-based awards be recognized in the consolidated financial statements. Unit-based compensation cost is valued at fair value at the date of grant, and that grant date fair value is recognized as expense over each award’s requisite service period with a corresponding increase to equity or liability based on the terms of each award and the appropriate accounting treatment under ASC 718. Unit-based compensation associated with ENLC’s unit-based compensation plan awarded to directors, officers, and employees of the General Partner is recorded by ENLK since ENLC has no substantial or managed operating activities other than its interests in ENLK. Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions): Year Ended December 31, 2021 2020 2019 Cost of unit-based compensation charged to general and administrative expense $ 18.7 $ 21.3 $ 32.7 Cost of unit-based compensation charged to operating expense 6.6 7.1 6.7 Total unit-based compensation expense $ 25.3 $ 28.4 $ 39.4 Non-controlling interest in unit-based compensation $ — $ — $ 0.5 Amount of related income tax benefit recognized in net income (loss) (1) $ 5.9 $ 6.7 $ 9.1 ____________________________ (1) For the years ended December 31, 2021, 2020, and 2019 the amount of related income tax benefit recognized in net income (loss) excluded $3.1 million, $6.0 million, and $2.2 million of income tax expense, respectively, related to book-to-tax differences recorded upon vesting of restricted units. (b) ENLC Restricted Incentive Units ENLC restricted incentive units were valued at their fair value at the date of grant, which is equal to the market value of ENLC common units on such date. A summary of the restricted incentive unit activity for the year ended December 31, 2021 is provided below: Year Ended December 31, 2021 ENLC Restricted Incentive Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 5,350,086 $ 8.45 Granted (1) 3,937,301 3.86 Vested (1)(2) (1,268,801) 12.85 Forfeited (511,115) 6.10 Non-vested, end of period 7,507,471 $ 5.46 Aggregate intrinsic value, end of period (in millions) $ 51.7 ____________________________ (1) Restricted incentive units typically vest at the end of three years. (2) Vested units included 382,343 units withheld for payroll taxes paid on behalf of employees. A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2021, 2020, and 2019 is provided below (in millions): Year Ended December 31, ENLC Restricted Incentive Units: 2021 2020 2019 Aggregate intrinsic value of units vested $ 5.6 $ 12.1 $ 17.3 Fair value of units vested $ 16.3 $ 31.5 $ 22.8 As of December 31, 2021, there were $13.0 million of unrecognized compensation costs that related to non-vested ENLC restricted incentive units. These costs are expected to be recognized over a weighted average period of 1.6 years. For restricted incentive unit awards granted to certain officers and employees (the “grantee”), such awards (the “Subject Grants”) generally provide that, subject to the satisfaction of the conditions set forth in the agreement, the Subject Grants will vest on the third anniversary of the vesting commencement date (the “Regular Vesting Date”). The Subject Grants will be forfeited if the grantee’s employment or service with ENLC and its affiliates terminates prior to the Regular Vesting Date except that the Subject Grants will vest in full or on a pro-rated basis for certain terminations of employment or service prior to the Regular Vesting Date. For instance, the Subject Grants will vest on a pro-rated basis for any terminations of the grantee’s employment: (i) due to retirement, (ii) by ENLC or its affiliates without cause, or (iii) by the grantee for good reason (each, a “Covered Termination” and more particularly defined in the Subject Grants agreement) except that the Subject Grants will vest in full if the applicable Covered Termination is a “normal retirement” (as defined in the Subject Grants agreement) or the applicable Covered Termination occurs after a change of control (if any). The Subject Grants will vest in full if death or a qualifying disability occurs prior to the Regular Vesting Date. (c) ENLC Performance Units ENLC grants performance awards under the 2014 Plan. The performance award agreements provide that the vesting of performance units (i.e., performance-based restricted incentive units) granted thereunder is dependent on the achievement of certain performance goals over the applicable performance period. At the end of the vesting period, recipients receive distribution equivalents, if any, with respect to the number of performance units vested. The vesting of such units ranges from zero to 200% of the units granted depending on the extent to which the related performance goals are achieved over the relevant performance period. Performance Unit Awards Vesting The vesting of performance units is dependent on (a) the grantee’s continued employment or service with ENLC or its affiliates for all relevant periods and (b) the TSR performance of ENLC (the “ENLC TSR”) and a performance goal based on cash flow (“Cash Flow”). At the time of grant, the Board of Directors of the Managing Member (the “Board”) will determine the relative weighting of the two performance goals by including in the award agreement the number of units that will be eligible for vesting depending on the achievement of the TSR performance goals (the “Total TSR Units”) versus the achievement of the Cash Flow performance goals (the “Total CF Units”). These performance awards have four separate performance periods: (i) three performance periods are each of the first, second, and third calendar years that occur following the vesting commencement date of the performance awards and (ii) the fourth performance period is the cumulative three-year period from the vesting commencement date through the third anniversary thereof (the “Cumulative Performance Period”). One-fourth of the Total TSR Units (the “Tranche TSR Units”) relates to each of the four performance periods described above. Following the end date of a given performance period, the Governance and Compensation Committee (the “Committee”) of the Board will measure and determine the ENLC TSR relative to the TSR performance of a designated group of peer companies (the “Designated Peer Companies”) to determine the Tranche TSR Units that are eligible to vest, subject to the grantee’s continued employment or service with ENLC or its affiliates through the end date of the Cumulative Performance Period. In short, the TSR for a given performance period is defined as (i)(A) the average closing price of a common equity security at the end of the relevant performance period minus (B) the average closing price of a common equity security at the beginning of the relevant performance period plus (C) reinvested dividends divided by (ii) the average closing price of a common equity security at the beginning of the relevant performance period. The following table sets out the levels at which the Tranche TSR Units may vest (using linear interpolation) based on the ENLC TSR percentile ranking for the applicable performance period relative to the TSR achievement of the Designated Peer Companies: Performance Level Achieved ENLC TSR Vesting percentage Below Threshold Less than 25% 0% Threshold Equal to 25% 50% Target Equal to 50% 100% Maximum Greater than or Equal to 75% 200% Approximately one-third of the Total CF Units (the “Tranche CF Units”) relates to each of the first three performance periods described above (i.e., the Cash Flow performance goal does not relate to the Cumulative Performance Period). The Board will establish the Cash Flow performance targets for purposes of the column in the table below titled “ENLC’s Achieved Cash Flow” for each performance period no later than March 31 of the year in which the relevant performance period begins. Following the end date of a given performance period, the Committee will measure and determine the Cash Flow performance of ENLC to determine the Tranche CF Units that are eligible to vest, subject to the grantee’s continued employment or service with ENLC or its affiliates through the end of the Cumulative Performance Period. In short, the Performance-Based Award Agreement defines Cash Flow for a given performance period as (A)(i) ENLC’s adjusted EBITDA minus (ii) interest expense, current taxes and other, maintenance capital expenditures, and preferred unit accrued distributions divided by (B) the time-weighted average number of ENLC’s common units outstanding during the relevant performance period. In 2021, the Board adopted the metric free cash flow after distributions (“FCFAD”) as the cash flow performance goal in the Performance-Based Award Agreement rather than the previously used distributable cash flow per unit. The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the FCFAD performance of ENLC for the performance period ending December 31, 2021: Performance Level ENLC’s Achieved FCFAD Vesting percentage Below Threshold Less than $205 million 0% Threshold Equal to $205 million 50% Target Equal to $256 million 100% Maximum Greater than or Equal to $300 million 200% The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the cash flow performance of ENLC for the performance period ending December 31, 2020: Performance Level ENLC’s Achieved Vesting percentage Below Threshold Less than $1.345 0% Threshold Equal to $1.345 50% Target Equal to $1.494 100% Maximum Greater than or Equal to $1.643 200% The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the cash flow performance of ENLC for the performance period ending December 31, 2019: Performance Level ENLC’s Achieved Vesting percentage Below Threshold Less than $1.43 0% Threshold Equal to $1.43 50% Target Equal to $1.55 100% Maximum Greater than or Equal to $1.72 200% The fair value of each performance unit is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all performance unit grants made under the plan: (i) a risk-free interest rate based on United States Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of ENLC’s common units and the Designated Peer Companies’ or Peer Companies’ securities as applicable; (iii) an estimated ranking of ENLC (or for outstanding performance units granted prior to the Merger, ENLC and ENLK) among the Designated Peer Companies or Peer Companies, and (iv) the distribution yield. The fair value of the performance unit on the date of grant is expensed over a vesting period of approximately three years. The following table presents a summary of the grant-date fair value assumptions by performance unit grant date: ENLC Performance Units: January 2021 July 2020 March 2020 January 2020 October 2019 June 2019 March 2019 Grant-date fair value $ 4.70 $ 2.33 $ 1.13 $ 7.69 $ 7.29 $ 9.92 $ 13.10 Beginning TSR price $ 3.71 $ 2.52 $ 1.25 $ 6.13 $ 7.42 $ 9.84 $ 10.92 Risk-free interest rate 0.17 % 0.17 % 0.42 % 1.62 % 1.44 % 1.72 % 2.42 % Volatility factor 71.00 % 67.00 % 51.00 % 37.00 % 35.00 % 33.50 % 33.86 % The following table presents a summary of the performance units: Year Ended December 31, 2021 ENLC Performance Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 2,351,241 $ 8.82 Granted 1,388,139 4.70 Vested (1) (164,553) 26.73 Non-vested, end of period 3,574,827 $ 6.40 Aggregate intrinsic value, end of period (in millions) $ 24.6 ____________________________ (1) Vested units included 63,901 units withheld for payroll taxes paid on behalf of employees. A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2021, 2020, and 2019 is provided below (in millions). Year Ended December 31, ENLC Performance Units: 2021 2020 2019 Aggregate intrinsic value of units vested $ 0.6 $ 0.9 $ 3.4 Fair value of units vested $ 4.4 $ 5.5 $ 7.9 As of December 31, 2021, there were $10.4 million of unrecognized compensation costs that related to non-vested ENLC performance units. These costs are expected to be recognized over a weighted-average period of 1.6 years. (d) Benefit Plan |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | (12) Derivatives Interest Rate Swaps In April 2019, we entered into $850.0 million of interest rate swaps to manage the interest rate risk associated with our floating-rate, LIBOR-based borrowings. Under this arrangement, we paid a fixed interest rate of 2.28% in exchange for LIBOR-based variable interest through December 2021. These interest rate swaps expired on December 10, 2021. There was no ineffectiveness related to this hedge. During 2021 and 2020, we terminated the interest rate swaps in several increments in connection with repayments of the Term Loan, which was one of our floating-rate, LIBOR-based borrowings. The following table presents the interest rate swaps terminations and the associated cash payments during 2021 and 2020 (in millions): Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 The components of the unrealized gain (loss) on designated cash flow hedge related to changes in the fair value of our interest rate swaps were as follows (in millions): Year Ended December 31, 2021 2020 2019 Change in fair value of interest rate swaps $ 18.2 $ (5.6) $ (12.4) Tax benefit (expense) (4.3) 1.3 3.4 Unrealized gain (loss) on designated cash flow hedge $ 13.9 $ (4.3) $ (9.0) The interest expense, recognized from accumulated other comprehensive loss from the monthly settlement of our interest rate swaps and amortization of the termination payments, included in our consolidated statements of operations were as follows (in millions): Year Ended December 31, 2021 2020 2019 Interest expense $ 18.3 $ 14.5 $ 0.4 We expect to recognize an additional $0.1 million of interest expense out of accumulated other comprehensive loss over the next twelve months. The fair value of our interest rate swaps included in our consolidated balance sheets were as follows (in millions): December 31, 2021 December 31, 2020 Fair value of derivative liabilities—current $ — $ (7.6) Commodity Swaps We manage our exposure to changes in commodity prices by hedging the impact of market fluctuations. Commodity swaps are used both to manage and hedge price and location risk related to these market exposures and to manage margins on offsetting fixed-price purchase or sale commitments for physical quantities of crude, condensate, natural gas, and NGLs. We do not designate commodity swaps as cash flow or fair value hedges for hedge accounting treatment under ASC 815. Therefore, changes in the fair value of our derivatives are recorded in revenue in the period incurred. In addition, our commodity risk management policy does not allow us to take speculative positions with our derivative contracts. We commonly enter into index (float-for-float) or fixed-for-float swaps in order to mitigate our cash flow exposure to fluctuations in the future prices of natural gas, NGLs, and crude oil. For natural gas, index swaps are used to protect against the price exposure of daily priced gas versus first-of-month priced gas. For condensate, crude oil, and natural gas, index swaps are also used to hedge the basis location price risk resulting from supply and markets being priced on different indices. For natural gas, NGLs, condensate, and crude oil, fixed-for-float swaps are used to protect cash flows against price fluctuations: (1) where we receive a percentage of liquids as a fee for processing third-party gas or where we receive a portion of the proceeds of the sales of natural gas and liquids as a fee, (2) in the natural gas processing and fractionation components of our business and (3) where we are mitigating the price risk for product held in inventory or storage. Assets and liabilities related to our derivative contracts are included in the fair value of derivative assets and liabilities, and the change in fair value of these contracts is recorded net as a gain (loss) on derivative activity on the consolidated statements of operations. We estimate the fair value of all of our derivative contracts based upon actively-quoted prices of the underlying commodities. The components of gain (loss) on derivative activity in the consolidated statements of operations related to commodity swaps are (in millions): Year Ended December 31, 2021 2020 2019 Change in fair value of derivatives $ (12.4) $ (10.5) $ (0.1) Realized gain (loss) on derivatives (146.7) (11.5) 14.5 Gain (loss) on derivative activity $ (159.1) $ (22.0) $ 14.4 The fair value of derivative assets and liabilities related to commodity swaps are as follows (in millions): December 31, 2021 December 31, 2020 Fair value of derivative assets—current $ 22.4 $ 25.0 Fair value of derivative assets—long-term 0.2 4.9 Fair value of derivative liabilities—current (34.9) (29.5) Fair value of derivative liabilities—long-term (2.2) (2.5) Net fair value of commodity swaps $ (14.5) $ (2.1) Set forth below are the summarized notional volumes and fair values of all instruments related to commodity swaps that we held for price risk management purposes and the related physical offsets at December 31, 2021 (in millions). The remaining term of the contracts extend no later than January 2023. December 31, 2021 Commodity Instruments Unit Volume Net Fair Value NGL (short contracts) Swaps Gals (63.0) $ (10.6) NGL (long contracts) Swaps Gals — — Natural gas (short contracts) Swaps MMbtu (7.5) 2.7 Natural gas (long contracts) Swaps MMbtu 13.2 (7.8) Crude and condensate (short contracts) Swaps MMbbls (3.9) (4.4) Crude and condensate (long contracts) Swaps MMbbls 3.9 5.6 Total fair value of commodity swaps $ (14.5) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (13) Fair Value Measurements ASC 820 sets forth a framework for measuring fair value and required disclosures about fair value measurements of assets and liabilities. Fair value under ASC 820 is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, use of unobservable prices or inputs are used to estimate the current fair value, often using an internal valuation model. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the item being valued. ASC 820 established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Our derivative contracts primarily consist of commodity swap contracts, which are not traded on a public exchange. The fair values of commodity swap contracts are determined using discounted cash flow techniques. The techniques incorporate Level 1 and Level 2 inputs for future commodity prices that are readily available in public markets or can be derived from information available in publicly-quoted markets. These market inputs are utilized in the discounted cash flow calculation considering the instrument’s term, notional amount, discount rate, and credit risk and are classified as Level 2 in hierarchy. Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions): Level 2 December 31, 2021 December 31, 2020 Interest rate swaps (1) $ — $ (7.6) Commodity swaps (2) $ (14.5) $ (2.1) ____________________________ (1) The fair values of the interest rate swaps are estimated based on the difference between expected cash flows calculated at the contracted interest rates and the expected cash flows using observable benchmarks for the variable interest rates. (2) The fair values of commodity swaps represent the amount at which the instruments could be exchanged in a current arms-length transaction adjusted for our credit risk and/or the counterparty credit risk as required under ASC 820. Fair Value of Financial Instruments The estimated fair value of our financial instruments has been determined using available market information and valuation methodologies. Considerable judgment is required to develop the estimates of fair value; thus, the estimates provided below are not necessarily indicative of the amount we could realize upon the sale or refinancing of such financial instruments (in millions): December 31, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Long-term debt (1) $ 4,363.7 $ 4,520.0 $ 4,593.8 $ 4,318.2 Installment payab1e (2) $ 10.0 $ 10.0 $ — $ — Contingent consideration (2) $ 6.9 $ 6.9 $ — $ — ____________________________ (1) The carrying value of long-term debt as of December 31, 2020 includes current maturities. The carrying value of the long-term debt is reduced by debt issuance costs of $27.8 million and $32.6 million at December 31, 2021 and 2020, respectively. The respective fair values do not factor in debt issuance costs. (2) Consideration paid for the acquisition of Amarillo Rattler, LLC included $10.0 million to be paid on April 30, 2022 and a contingent consideration capped at $15.0 million and payable between 2024 and 2026 based on Diamondback Energy’s drilling activity above historical levels. Estimated fair values were calculated using a discounted cash flow analysis that utilized Level 3 inputs. For additional information regarding this transaction, refer to “Note 2—Significant Accounting Policies.” The carrying amounts of our cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term maturities of these assets and liabilities. The fair values of all senior unsecured notes as of December 31, 2021 and 2020 were based on Level 2 inputs from third-party market quotations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and Contingencies (a) Change of Control and Severance Agreements Certain members of our management are parties to severance and change of control agreements with the Operating Partnership. The severance and change in control agreements provide those individuals with severance payments in certain circumstances and prohibit such individuals from, among other things, competing with the General Partner or its affiliates during his or her employment. In addition, the severance and change of control agreements prohibit subject individuals from, among other things, disclosing confidential information about the General Partner or interfering with a client or customer of the General Partner or its affiliates, in each case during his or her employment and for certain periods (including indefinite periods) following the termination of such person’s employment. (b) Environmental Issues The operation of pipelines, plants, and other facilities for the gathering, processing, transmitting, stabilizing, fractionating, storing, or disposing of natural gas, NGLs, crude oil, condensate, brine, and other products is subject to stringent and complex laws and regulations pertaining to health, safety, and the environment. As an owner, partner, or operator of these facilities, we must comply with United States laws and regulations at the federal, state, and local levels that relate to air and water quality, hazardous and solid waste management and disposal, oil spill prevention, climate change, endangered species, and other environmental matters. The cost of planning, designing, constructing, and operating pipelines, plants, and other facilities must account for compliance with environmental laws and regulations and safety standards. Federal, state, or local administrative decisions, developments in the federal or state court systems, or other governmental or judicial actions may influence the interpretation and enforcement of environmental laws and regulations and may thereby increase compliance costs. Failure to comply with these laws and regulations may trigger a variety of administrative, civil, and potentially criminal enforcement measures, including citizen suits, which can include the assessment of monetary penalties, the imposition of remedial requirements, and the issuance of injunctions or restrictions on operation. Management believes that, based on currently known information, compliance with these laws and regulations will not have a material adverse effect on our results of operations, financial condition, or cash flows. However, we cannot provide assurance that future events, such as changes in existing laws, regulations, or enforcement policies, the promulgation of new laws or regulations, or the discovery or development of new factual circumstances will not cause us to incur material costs. Environmental regulations have historically become more stringent over time, and thus, there can be no assurance as to the amount or timing of future expenditures for environmental compliance or remediation. (c) Litigation Contingencies In February 2021, the areas in which we operate experienced a severe winter storm, with extreme cold, ice, and snow occurring over an unprecedented period of approximately 10 days (“Winter Storm Uri”). As a result of Winter Storm Uri, we have encountered customer billing disputes related to the delivery of gas during the storm, including one that resulted in litigation. The litigation is between one of our subsidiaries, EnLink Gas Marketing, LP (“EnLink Gas”), and Koch Energy Services, LLC (“Koch”) in the 162nd District Court in Dallas County, Texas. The dispute centers on whether EnLink Gas was excused from delivering gas or performing under certain delivery or purchase obligations during Winter Storm Uri, given our declaration of force majeure during the storm. Koch has invoiced us approximately $53.9 million (after subtracting amounts owed to EnLink Gas) and does not recognize the declaration of force majeure. We believe the declaration of force majeure was valid and appropriate and we intend to vigorously defend against Koch’s claims. Another of our subsidiaries, EnLink Energy GP, LLC, is also involved in litigation arising out of Winter Storm Uri. This matter is a multi-district litigation currently pending in Harris County, Texas, in which multiple individual plaintiffs assert personal injury and property damage claims arising out of Winter Storm Uri against an aggregate of over 350 power generators, transmission/distribution utility, retail electric provider, and natural gas defendants across over 150 filed cases. We believe the claims against our subsidiary lack merit and we intend to vigorously defend against such claims. In addition, we are involved in various litigation and administrative proceedings arising in the normal course of business. In the opinion of management, any liabilities that may result from these claims would not, individually or in the aggregate, have a material adverse effect on our financial position, results of operations, or cash flows. We may also be involved from time to time in the future in various proceedings in the normal course of business, including litigation on disputes related to contracts, property rights, property use or damage (including nuisance claims), personal injury, or the value of pipeline easements or other rights obtained through the exercise of eminent domain or common carrier rights. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | (15) Segment Information Starting in the first quarter of 2021, we began evaluating the financial performance of our segments by including realized and unrealized gains and losses resulting from commodity swaps activity in the Permian, Louisiana, Oklahoma, and North Texas segments. Commodity swaps activity was previously reported in the Corporate segment. We have recast segment information for all presented periods prior to the first quarter of 2021 to conform to current period presentation. Identification of the majority of our operating segments is based principally upon geographic regions served: • Permian Segment. The Permian segment includes our natural gas gathering, processing, and transmission activities and our crude oil operations in the Midland and Delaware Basins in West Texas and Eastern New Mexico; • Louisiana Segment. The Louisiana segment includes our natural gas and NGL pipelines, natural gas processing plants, natural gas and NGL storage facilities, and fractionation facilities located in Louisiana and our crude oil operations in ORV; • Oklahoma Segment. The Oklahoma segment includes our natural gas gathering, processing, and transmission activities, and our crude oil operations in the Cana-Woodford, Arkoma-Woodford, northern Oklahoma Woodford, STACK, and CNOW shale areas; • North Texas Segment. The North Texas segment includes our natural gas gathering, processing, and transmission activities in North Texas; and • Corporate Segment. The Corporate segment includes our unconsolidated affiliate investments in the Cedar Cove JV in Oklahoma, our ownership interest in GCF in South Texas, and our general corporate assets and expenses. We evaluate the performance of our operating segments based on segment profit and adjusted gross margin. Adjusted gross margin is a non-GAAP financial measure. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” for additional information. Summarized financial information for our reportable segments is shown in the following tables (in millions): Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2021 Natural gas sales $ 609.4 $ 693.5 $ 213.4 $ 150.0 $ — $ 1,666.3 NGL sales 0.9 3,353.1 2.0 1.1 — 3,357.1 Crude oil and condensate sales 677.4 212.0 81.2 — — 970.6 Product sales 1,287.7 4,258.6 296.6 151.1 — 5,994.0 NGL sales—related parties 1,008.4 129.7 630.8 447.0 (2,215.9) — Crude oil and condensate sales—related parties — — 0.1 7.1 (7.2) — Product sales—related parties 1,008.4 129.7 630.9 454.1 (2,223.1) — Gathering and transportation 46.8 64.7 186.9 157.0 — 455.4 Processing 29.1 2.4 98.7 108.3 — 238.5 NGL services — 82.6 — 0.3 — 82.9 Crude services 18.4 39.3 12.8 0.7 — 71.2 Other services 0.2 1.7 0.6 0.5 — 3.0 Midstream services 94.5 190.7 299.0 266.8 — 851.0 Crude services—related parties — — 0.3 — (0.3) — Other services—related parties — 2.4 — — (2.4) — Midstream services—related parties — 2.4 0.3 — (2.7) — Revenue from contracts with customers 2,390.6 4,581.4 1,226.8 872.0 (2,225.8) 6,845.0 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (1,996.1) (4,091.2) (796.6) (531.8) 2,225.8 (5,189.9) Realized loss on derivatives (75.6) (42.3) (22.6) (6.2) — (146.7) Change in fair value of derivatives (7.7) 0.7 — (5.4) — (12.4) Adjusted gross margin 311.2 448.6 407.6 328.6 — 1,496.0 Operating expenses (81.5) (123.7) (80.0) (77.7) — (362.9) Segment profit 229.7 324.9 327.6 250.9 — 1,133.1 Depreciation and amortization (139.9) (141.0) (204.3) (114.3) (8.0) (607.5) Impairments — (0.6) — — (0.2) (0.8) Gain on disposition of assets — 1.2 — 0.3 — 1.5 General and administrative — — — — (107.8) (107.8) Interest expense, net of interest income — — — — (238.7) (238.7) Loss from unconsolidated affiliates — — — — (11.5) (11.5) Income (loss) before non-controlling interest and income taxes $ 89.8 $ 184.5 $ 123.3 $ 136.9 $ (366.2) $ 168.3 Capital expenditures $ 141.6 $ 9.3 $ 30.4 $ 11.9 $ 2.8 $ 196.0 ____________________________ (1) Includes related party cost of sales of $17.9 million for the year ended December 31, 2021. Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2020 Natural gas sales $ 150.1 $ 330.5 $ 153.1 $ 70.3 $ — $ 704.0 NGL sales 0.2 1,545.4 2.8 — — 1,548.4 Crude oil and condensate sales 558.1 126.7 40.3 — — 725.1 Product sales 708.4 2,002.6 196.2 70.3 — 2,977.5 NGL sales—related parties 312.6 31.4 296.4 115.2 (755.6) — Crude oil and condensate sales—related parties 0.6 — (0.1) 3.6 (4.1) — Product sales—related parties 313.2 31.4 296.3 118.8 (759.7) — Gathering and transportation 42.8 46.5 228.7 179.2 — 497.2 Processing 24.1 2.0 123.6 132.6 — 282.3 NGL services — 75.8 — 0.2 — 76.0 Crude services 16.8 45.2 16.5 0.2 — 78.7 Other services 1.2 1.6 0.4 0.9 — 4.1 Midstream services 84.9 171.1 369.2 313.1 — 938.3 Crude services—related parties — — 0.3 — (0.3) — Midstream services—related parties — — 0.3 — (0.3) — Revenue from contracts with customers 1,106.5 2,205.1 862.0 502.2 (760.0) 3,915.8 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (842.2) (1,787.0) (365.5) (153.8) 760.0 (2,388.5) Realized loss on derivatives (1.1) (6.0) (4.4) — — (11.5) Change in fair value of derivatives 1.1 (6.5) (4.5) (0.6) — (10.5) Adjusted gross margin 264.3 405.6 487.6 347.8 — 1,505.3 Operating expenses (94.2) (120.0) (82.2) (77.4) — (373.8) Segment profit 170.1 285.6 405.4 270.4 — 1,131.5 Depreciation and amortization (125.2) (145.8) (216.9) (143.4) (7.3) (638.6) Impairments (184.6) (170.0) (0.7) — (7.5) (362.8) Gain (loss) on disposition of assets (11.2) 0.1 0.3 2.0 — (8.8) General and administrative — — — — (103.3) (103.3) Interest expense, net of interest income — — — — (223.3) (223.3) Gain on extinguishment of debt — — — — 32.0 32.0 Income from unconsolidated affiliates — — — — 0.6 0.6 Other income — — — — 0.3 0.3 Income (loss) before non-controlling interest and income taxes $ (150.9) $ (30.1) $ 188.1 $ 129.0 $ (308.5) $ (172.4) Capital expenditures $ 181.1 $ 44.6 $ 17.9 $ 16.9 $ 2.1 $ 262.6 ____________________________ (1) Includes related party cost of sales of $8.7 million for the year ended December 31, 2020. Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2019 Natural gas sales $ 94.3 $ 416.6 $ 236.4 $ 129.3 $ — $ 876.6 NGL sales 0.9 1,725.6 19.6 30.9 — 1,777.0 Crude oil and condensate sales 1,975.0 291.9 109.6 — — 2,376.5 Product sales 2,070.2 2,434.1 365.6 160.2 — 5,030.1 Natural gas sales—related parties 0.4 — — — (0.4) — NGL sales—related parties 347.7 25.7 421.1 94.8 (889.3) — Crude oil and condensate sales—related parties 13.5 1.7 — 5.5 (20.7) — Product sales—related parties 361.6 27.4 421.1 100.3 (910.4) — Gathering and transportation 48.8 58.3 234.5 196.4 — 538.0 Processing 30.5 3.2 138.2 143.0 — 314.9 NGL services — 50.6 — 0.1 — 50.7 Crude services 19.2 51.9 19.8 — — 90.9 Other services 12.0 0.7 0.1 1.1 — 13.9 Midstream services 110.5 164.7 392.6 340.6 — 1,008.4 NGL services—related parties — (3.4) — — 3.4 — Crude services—related parties — — 1.8 — (1.8) — Midstream services—related parties — (3.4) 1.8 — 1.6 — Revenue from contracts with customers 2,542.3 2,622.8 1,181.1 601.1 (908.8) 6,038.5 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (2,283.9) (2,181.6) (627.0) (208.8) 908.8 (4,392.5) Realized gain on derivatives 9.4 5.1 — — — 14.5 Change in fair value of derivatives 1.5 (1.8) — 0.2 — (0.1) Adjusted gross margin 269.3 444.5 554.1 392.5 — 1,660.4 Operating expenses (112.9) (147.3) (104.0) (102.9) — (467.1) Segment profit 156.4 297.2 450.1 289.6 — 1,193.3 Depreciation and amortization (119.8) (154.1) (194.9) (139.8) (8.4) (617.0) Impairments (3.5) (188.7) (813.5) (127.8) — (1,133.5) Gain (loss) on disposition of assets (0.3) 2.6 0.1 (0.5) — 1.9 General and administrative — — — — (152.6) (152.6) Loss on secured term loan receivable — — — — (52.9) (52.9) Interest expense, net of interest income — — — — (216.0) (216.0) Loss from unconsolidated affiliates — — — — (16.8) (16.8) Other income — — — — 0.9 0.9 Income (loss) before non-controlling interest and income taxes $ 32.8 $ (43.0) $ (558.2) $ 21.5 $ (445.8) $ (992.7) Capital expenditures $ 364.5 $ 99.9 $ 238.1 $ 39.0 $ 6.9 $ 748.4 ____________________________ (1) Includes related party cost of sales of $21.7 million for the year ended December 31, 2019. The table below represents information about segment assets as of December 31, 2021 and 2020 (in millions): Segment Identifiable Assets: December 31, 2021 December 31, 2020 Permian $ 2,358.6 $ 2,236.3 Louisiana 2,428.6 2,312.4 Oklahoma 2,619.5 2,847.6 North Texas 896.8 1,008.6 Corporate (1) 179.7 146.0 Total identifiable assets $ 8,483.2 $ 8,550.9 ____________________________ |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | (16) Supplemental Cash Flow Information The following schedule summarizes cash paid for interest, cash paid for income taxes, cash paid for finance leases included in cash flows from financing activities, cash paid for operating leases included in cash flows from operating activities, non-cash investing activities, and non-cash financing activities for the periods presented (in millions): Year Ended December 31, Supplemental disclosures of cash flow information: 2021 2020 2019 Cash paid for interest $ 208.8 $ 207.3 $ 218.9 Cash paid (refunded) for income taxes $ 0.3 $ (0.7) $ 4.0 Cash paid for finance leases included in cash flows from financing activities $ — $ — $ 1.2 Cash paid for operating leases included in cash flows from operating activities $ 24.6 $ 24.6 $ 29.8 Non-cash investing activities: Non-cash accrual of property and equipment $ 12.0 $ (39.6) $ (6.5) Non-cash right-of-use assets obtained in exchange for operating lease liabilities $ 18.7 $ 9.8 $ 104.1 Non-cash acquisitions $ 16.9 $ — $ — Non-cash financing activities: Receivable from sale of VEX $ — $ 10.0 $ — Redemption of non-controlling interest $ — $ (4.0) $ — |
Other Information
Other Information | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Information | (17) Other Information The following tables present additional detail for other current assets and other current liabilities, which consists of the following (in millions): Other current assets: December 31, 2021 December 31, 2020 Natural gas and NGLs inventory $ 49.4 $ 44.9 Prepaid expenses and other 34.2 13.8 Other current assets $ 83.6 $ 58.7 Other current liabilities: December 31, 2021 December 31, 2020 Accrued interest $ 47.2 $ 35.7 Accrued wages and benefits, including taxes 33.1 22.5 Accrued ad valorem taxes 28.3 26.5 Capital expenditure accruals 23.2 10.6 Short-term lease liability 18.1 16.3 Installment payable (1) 10.0 — Inactive easement commitment (2) 9.8 — Operating expense accruals 9.6 8.4 Other 23.6 29.1 Other current liabilities $ 202.9 $ 149.1 ____________________________ (1) Consideration paid for the acquisition of Amarillo Rattler, LLC included an installment payable to be paid on April 30, 2022. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | (18) Subsequent Event Redemption of Series B Preferred Units. In January 2022, we redeemed 3,333,334 Series B Preferred Units for total consideration of $50.5 million plus accrued distributions. In addition, upon such redemption, a corresponding number of ENLC Class C Common Units were automatically cancelled. The redemption price represents 101% of the preferred units’ par value. In connection with the Series B Preferred Unit redemption, we have agreed with the holders of the Series B Preferred Units that we will pay cash in lieu of making a quarterly PIK distribution through the distribution declared for the fourth quarter of 2022. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying consolidated financial statements have been prepared in accordance with GAAP. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to the financial statements for the prior period to conform to current period presentation. The effect of these reclassifications had no impact on previously reported members’ equity or net income (loss). |
Management's Use of Estimates | Management’s Use of EstimatesThe preparation of financial statements in accordance with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates. |
Revenue Recognition | Revenue Recognition We generate the majority of our revenues from midstream energy services, including gathering, transmission, processing, fractionation, storage, condensate stabilization, brine services, and marketing, through various contractual arrangements, which include fee-based contract arrangements or arrangements where we purchase and resell commodities in connection with providing the related service and earn a net margin for our fee. While our transactions vary in form, the essential element of most of our transactions is the use of our assets to transport a product or provide a processed product to an end-user or marketer at the tailgate of the plant, pipeline, or barge, truck, or rail terminal. Revenues from both “Product sales” and “Midstream services” represent revenues from contracts with customers and are reflected on the consolidated statements of operations as follows: • Product sales— Product sales represent the sale of natural gas, NGLs, crude oil, and condensate where the product is purchased and resold in connection with providing our midstream services as outlined above. • Midstream services— Midstream services represent all other revenue generated as a result of performing our midstream services outlined above. Evaluation of Our Contractual Performance Obligations Performance obligations in our contracts with customers include: • promises to perform midstream services for our customers over a specified contractual term and/or for a specified volume of commodities; and • promises to sell a specified volume of commodities to our customers. The identification of performance obligations under our contracts requires a contract-by-contract evaluation of when control, including the economic benefit, of commodities transfers to and from us (if at all). For contracts where control of commodities transfers to us before we perform our services, we generally have no performance obligation for our services, and accordingly, we do not consider these revenue-generating contracts. Based on the control determination, all contractually-stated fees that are deducted from our payments to producers or other suppliers for commodities purchased are reflected as a reduction in the cost of such commodity purchases. Alternatively, for contracts where control of commodities transfers to us after we perform our services, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating and recognize the fees received for satisfying them as midstream services revenues over time as we satisfy our performance obligations. For contracts where control of commodities never transfers to us and we simply earn a fee for our services, we recognize these fees as midstream services revenues over time as we satisfy our performance obligations. We also evaluate our contractual arrangements that contain a purchase and sale of commodities under the principal/agent provisions in ASC 606. For contracts where we possess control of the commodity and act as principal in the purchase and sale, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities when purchased. For contracts in which we do not possess control of the commodity and are acting as an agent, our consolidated statements of operations only reflect midstream services revenues that we earn based on the fees contained in the applicable contract. Accounting Methodology for Certain Contracts For NGL contracts in which we purchase raw mix NGLs and subsequently transport, fractionate, and market the NGLs, we consider the contractually-stated fees to serve as pricing mechanisms that reduce the cost of the commodities purchased. We account for the contractually-stated fees on the consolidated statements of operations as a reduction of cost of sales of such commodities purchased upon receipt of the raw mix NGLs, because we determined that the control, including the economic benefit, of commodities has passed to us once the raw mix NGLs have been purchased from the customer. Upon sale of the NGLs to a third-party customer, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities purchased. For our crude oil and condensate service contracts in which we purchase the commodity, we utilize a similar approach under as outlined above for NGL contracts. For our natural gas gathering and processing contracts in which we perform midstream services and also purchase the natural gas, we determine if economic control of the commodities has passed from the producer to us before or after we perform our services (if at all). Control is assessed on a contract-by-contract basis by analyzing each contract’s provisions, which can include provisions for: the customer to take its residue gas and/or NGLs in-kind; fixed or actual NGL or keep-whole recovery; commodity purchase prices at weighted average sales price or market index-based pricing; and various other contract-specific considerations. Based on this control assessment, our gathering and processing contracts fall into two primary categories: • For gathering and processing contracts in which there is a commodity purchase and analysis of the contract provisions indicates that control, including the economic benefit, of the natural gas passes to us when the natural gas is brought into our system, we do not consider these contracts to contain performance obligations for our services. As control of the natural gas passes to us prior to performing our gathering and processing services, we are, in effect, performing our services for our own benefit. Based on this control determination, we consider the contractually-stated fees to serve as pricing mechanisms that reduce the cost of such commodity purchased upon receipt of the natural gas, rather than being recorded as midstream services revenue. Upon sale of the residue gas and/or NGLs to a third-party customer, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities purchased, net of fees. • For gathering and processing contracts in which there is a commodity purchase and analysis of the contract provisions indicates that control, including the economic benefit, of the natural gas does not pass to us until after the natural gas has been gathered and processed, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating, and we recognize the fees received for satisfying these performance obligations as midstream services revenues over time as we satisfy our performance obligations. For midstream service contracts related to NGL, crude oil, or natural gas gathering and processing in which there is no commodity purchase or control of the commodity never passes to us and we simply earn a fee for our services, we consider these contracts to contain performance obligations for our services. Accordingly, we consider the satisfaction of these performance obligations as revenue-generating, and we recognize the fees received for satisfying these performance obligations as midstream services revenue over time as we satisfy our performance obligations. For our natural gas transmission contracts, we determined that control of the natural gas never transfers to us and we simply earn a fee for our services. Therefore, we recognize these fees as midstream services revenue over time as we satisfy our performance obligations. We also evaluate our commodity marketing contracts, under which we purchase and sell commodities in connection with our gas, NGL, and crude and condensate midstream services, pursuant to ASC 606, including the principal/agent provisions. For contracts in which we possess control of the commodity and act as principal in the purchase and sale of commodities, we record product sales revenue at the price at which the commodities are sold, with a corresponding cost of sales equal to the cost of the commodities when purchased. For contracts in which we do not possess control of the commodity and are acting as agent, our consolidated statements of operations only reflect midstream services revenues that we earn based on the fees contained in the applicable contract. Satisfaction of Performance Obligations and Recognition of Revenue For our commodity sales contracts, we satisfy our performance obligations at the point in time at which the commodity transfers from us to the customer. This transfer pattern aligns with our billing methodology. Therefore, we recognize product sales revenue at the time the commodity is delivered and in the amount to which we have the right to invoice the customer. For our midstream service contracts that contain revenue-generating performance obligations, we satisfy our performance obligations over time as we perform the midstream service and as the customer receives the benefit of these services over the term of the contract. We recognize revenue in the amount to which the entity has a right to invoice, since we have a right to consideration from our customer in an amount that corresponds directly with the value to the customer of our performance completed to date. Accordingly, we continue to recognize revenue over time as our midstream services are performed. We generally accrue one month of sales and the related natural gas, NGL, condensate, and crude oil purchases and reverse these accruals when the sales and purchases are invoiced and recorded in the subsequent month. Actual results could differ from the accrual estimates. We typically receive payment for invoiced amounts within one month, depending on the terms of the contract. Prior to issuing our financial statements, we review our revenue and purchases estimates based on available information to determine if adjustments are required. We account for taxes collected from customers attributable to revenue transactions and remitted to government authorities on a net basis (excluded from revenues). Minimum Volume Commitments and Firm Transportation Contracts |
Acquisition of Business | Acquisition of BusinessOn April 30, 2021, we completed the acquisition of Amarillo Rattler, LLC, the owner of a gathering and processing system located in the Midland Basin. In connection with the purchase, we entered into an amended and restated gas gathering and processing agreement with Diamondback Energy, strengthening our dedicated acreage position with that entity. We acquired the system with an upfront payment of $50.0 million, which was paid with cash-on-hand, with an additional $10.0 million to be paid on April 30, 2022, and contingent consideration capped at $15.0 million and payable between 2024 and 2026 based on Diamondback Energy’s drilling activity above historical levels.Under the acquisition method of accounting, the acquired assets of Amarillo Rattler, LLC have been recorded at their respective fair values as of the date of the acquisition. Determining the fair value of the assets of Amarillo Ratter, LLC requires judgment and certain assumptions to be made, particularly related to the valuation of acquired customer relationships. The inputs and assumptions related to the customer relationships are categorized as level 3 in the fair value hierarchy. On a historical pro forma basis, our consolidated revenues, net income (loss), total assets, and earnings per unit amounts would not have differed materially had the acquisition been completed on January 1, 2021 rather than April 30, 2021 |
Loss on Secured Term Loan Receivable | Loss on Secured Term Loan Receivable In late May 2019, White Star, the counterparty to our $58.0 million second lien secured term loan receivable, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. White Star defaulted on its May 2019 installment payment prior to filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In November 2019, White Star sold its assets and we did not recover any amounts then owed to us under the second lien secured term loan. As a result, we have recorded a $52.9 million loss in our consolidated statement of operations for the year ended December 31, 2019, which represents a full write-down of the second lien secured term loan. |
Gas Imbalance Accounting | Gas Imbalance AccountingQuantities of natural gas and NGLs over-delivered or under-delivered related to imbalance agreements are recorded monthly as receivables or payables using weighted average prices at the time of the imbalance. These imbalances are typically settled with deliveries of natural gas or NGLs. We had imbalance payables of $16.3 million and $6.1 million at December 31, 2021 and 2020, respectively, which approximate the fair value of these imbalances. We had imbalance receivables of $14.5 million and $7.5 million at December 31, 2021 and 2020, respectively, which are carried at the lower of cost or market value. Imbalance receivables and imbalance payables are included in the line items “Accrued revenue and other” and “Accrued gas, NGLs, condensate, and crude oil purchases,” respectively, on the consolidated balance sheets. |
Cash and Cash Equivalents | Cash and Cash EquivalentsWe consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Income Taxes | Income TaxesWe account for deferred income taxes related to the federal and state jurisdictions using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for the future tax benefits attributable to the expected utilization of existing tax net operating loss carryforwards and other types of carryforwards. If the future utilization of some portion of carryforwards is determined to be unlikely, a valuation allowance is provided to reduce the recorded tax benefits from such assets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In the event interest or penalties are incurred with respect to income tax matters, our policy will be to include such items in income tax expense. We record deferred tax assets and liabilities on a net basis on the consolidated balance sheets, with deferred tax assets included in “Other assets, net” and deferred tax liabilities included in “Deferred tax liability, net.” |
Natural Gas, Natural Gas Liquids, Crude Oil, and Condensate Inventory | Natural Gas, Natural Gas Liquids, Crude Oil, and Condensate InventoryOur inventories of products consist of natural gas, NGLs, crude oil, and condensate. We report these assets at the lower of cost or market value which is determined by using the first-in, first-out method. |
Property and Equipment | Property and EquipmentProperty and equipment are stated at historical cost less accumulated depreciation. Assets acquired in a business combination are recorded at fair value. Routine repairs and maintenance are charged against income when incurred. Renewals and improvements that extend the useful life or improve the function of the properties are capitalized. Interest costs for material projects are capitalized to property and equipment during the period the assets are undergoing preparation for intended use. The components of property and equipment, net of accumulated depreciation are as follows (in millions): Year Ended December 31, 2021 2020 Transmission assets $ 1,442.2 $ 1,410.5 Gathering systems 4,903.8 4,782.9 Gas processing plants 4,119.1 4,082.1 Other property and equipment 161.0 161.0 Construction in process 94.2 78.6 Property and equipment 10,720.3 10,515.1 Accumulated depreciation (4,332.0) (3,863.0) Property and equipment, net of accumulated depreciation $ 6,388.3 $ 6,652.1 Depreciation Expense. Depreciation is calculated using the straight-line method based on the estimated useful life of each asset, as follows: Useful Lives Transmission assets 20 - 25 years Gathering systems 20 - 25 years Gas processing plants 20 - 25 years Other property and equipment 3 - 25 years Gain or Loss on Disposition. Upon the disposition or retirement of property and equipment, any gain or loss is recognized in operating income in the consolidated statements of operations. For the years ended December 31, 2021, 2020, and 2019, dispositions primarily related to the sale of certain non-core assets. The (gain) loss on disposition of assets are as follows (in millions): Year Ended December 31, 2021 2020 2019 Net book value of assets disposed $ 3.3 $ 36.4 $ 12.4 Less: Proceeds from sales (4.8) (27.6) (14.3) (Gain) loss on disposition of assets $ (1.5) $ 8.8 $ (1.9) Impairment Review . In accordance with ASC 360, Property, Plant, and Equipment , we evaluate long-lived assets of identifiable business activities for potential impairment whenever events or changes in circumstances, or triggering events, indicate that their carrying value may not be recoverable. Triggering events include, but are not limited to, significant changes in the use of the asset group, current operating results that are significantly less than forecasted results, negative industry or economic trends including changes in commodity prices, significant adverse changes in legal or regulatory factors, or an expectation that it is more likely than not that an asset group will be sold before the end of its useful life. The carrying amount of a long-lived asset is not recoverable when it exceeds the undiscounted sum of the future cash flows expected to result from the use and eventual disposition of the asset. Estimates of expected future cash flows represent management’s best estimate based on reasonable and supportable assumptions. When the carrying amount of a long-lived asset is not recoverable, an impairment is recognized equal to the excess of the asset’s carrying value over its fair value, which is based on inputs that are not observable in the market, and thus represent Level 3 inputs. When determining whether impairment of our long-lived assets has occurred, we must estimate the undiscounted cash flows attributable to the asset. Our estimate of cash flows is based on assumptions regarding: • the future fee-based rate of new business or contract renewals; • the purchase and resale margins on natural gas, NGLs, crude oil, and condensate; • the volume of natural gas, NGLs, crude oil, and condensate available to the asset; • markets available to the asset; • operating expenses; and • future natural gas, NGLs, crude oil, and condensate prices. The amount of availability of natural gas, NGLs, crude oil, and condensate to an asset is sometimes based on assumptions regarding future drilling activity, which may be dependent in part on natural gas, NGL, crude oil, and condensate prices. Projections of natural gas, NGL, crude oil, and condensate volumes and future commodity prices are inherently subjective and contingent upon a number of variable factors, including but not limited to: • changes in general economic conditions in regions in which our markets are located; • the availability and prices of natural gas, NGLs, crude oil, and condensate supply; • our ability to negotiate favorable sales agreements; • the risks that natural gas, NGLs, crude oil, and condensate exploration and production activities will not occur or be successful; • our dependence on certain significant customers, producers, and transporters of natural gas, NGLs, crude oil, and condensate; and |
Comprehensive Income (Loss) | Comprehensive Income (Loss)Comprehensive income (loss) is comprised of net income (loss) and the effective portion of gains or losses on derivative financial instruments that qualify as cash flow hedges pursuant to ASC 815. |
Equity Method of Accounting | Equity Method of Accounting We account for investments where we do not control the investment but have the ability to exercise significant influence using the equity method of accounting. Under this method, unconsolidated affiliate investments are initially carried at the acquisition cost, increased by our proportionate share of the investee’s net income and by contributions made, and decreased by our proportionate share of the investee’s net losses and by distributions received. We evaluate our unconsolidated affiliate investments for potential impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. We recognize impairments of our investments as a loss from unconsolidated affiliates on our consolidated statements of operations. |
Non-controlling Interests | Non-controlling Interests We account for investments where we control the investment using the consolidation method of accounting. Under this method, we consolidate all the assets and liabilities of an investment on our consolidated balance sheets and record non-controlling interest for the portion of the investment that we do not own. We include all of an investment’s results of operations on our consolidated statements of operations and record income attributable to non-controlling interests for the portion of the investment that we do not own. Our non-controlling interests for the years ended December 31, 2021, 2020, and 2019 relate to the Series B Preferred Units, the Series C Preferred Units, NGP’s 49.9% ownership of the Delaware Basin JV, and Marathon Petroleum Corporation’s 50.0% ownership interest in the Ascension JV. For periods prior to the Merger, our non-controlling interests also included ENLK’s public common unitholders. |
Goodwill | Goodwill Goodwill is the cost of an acquisition less the fair value of the net identifiable assets of the acquired business. We evaluated goodwill for impairment annually as of October 31 and whenever events or changes in circumstances indicated it was more likely than not that the fair value of a reporting unit is less than its carrying amount. |
Intangible Assets | Intangible Assets Intangible assets associated with customer relationships are amortized on a straight-line basis over the expected period of benefits of the customer relationships, which range from ten Intangibles—Goodwill and Other |
Asset Retirement Obligations | Asset Retirement ObligationsWe recognize liabilities for retirement obligations associated with our pipelines and processing and fractionation facilities. Such liabilities are recognized when there is a legal obligation associated with the retirement of the assets and the amount can be reasonably estimated. The initial measurement of an asset retirement obligation is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the asset retirement cost. Our retirement obligations include estimated environmental remediation costs that arise from normal operations and are associated with the retirement of the long-lived assets. The asset retirement cost is depreciated using the straight-line depreciation method similar to that used for the associated property and equipment. |
Leases | LeasesEffective January 1, 2019, we adopted ASC 842 using the modified retrospective approach whereby we recognized leases on our consolidated balance sheet by recording a right-of-use asset and lease liability. We applied certain practical expedients that were allowed in the adoption of ASC 842, including not reassessing existing contracts for lease arrangements, not reassessing existing lease classification, not recording a right-of-use asset or lease liability for leases of twelve months or less, and not separating lease and non-lease components of a lease arrangement.We evaluate new contracts at inception to determine if the contract conveys the right to control the use of an identified asset for a period of time in exchange for periodic payments. A lease exists if we obtain substantially all of the economic benefits of an asset, and we have the right to direct the use of that asset. When a lease exists, we record a right-of-use asset that represents our right to use the asset over the lease term and a lease liability that represents our obligation to make payments over the lease term. Lease liabilities are recorded at the sum of future lease payments discounted by the collateralized rate we could obtain to lease a similar asset over a similar period, and right-of-use assets are recorded equal to the corresponding lease liability, plus any prepaid or direct costs incurred to enter the lease, less the cost of any incentives received from the lessor. |
Derivatives | Derivatives We use derivative instruments to hedge against changes in cash flows related to product price. We generally determine the fair value of swap contracts based on the difference between the derivative’s fixed contract price and the underlying market price at the determination date. The asset or liability related to the derivative instruments is recorded on the balance sheet at the fair value of derivative assets or liabilities in accordance with ASC 815. Changes in fair value of derivative instruments are recorded in gain or loss on derivative activity in the period of change. Realized gains and losses on commodity-related derivatives are recorded as gain or loss on derivative activity within revenues in the consolidated statements of operations in the period incurred. Settlements of derivatives are included in cash flows from operating activities. |
Concentrations of Credit Risk | Concentrations of Credit RiskFinancial instruments, which potentially subject us to concentrations of credit risk, consist primarily of trade accounts receivable and commodity financial instruments. Management believes the risk is limited, other than our exposure to significant customers discussed below, since our customers represent a broad and diverse group of energy marketers and end users. |
Environmental Costs | Environmental CostsEnvironmental expenditures are expensed or capitalized depending on the nature of the expenditures and the future economic benefit. Expenditures that relate to an existing condition caused by past operations that do not contribute to current or future revenue generation are expensed. Liabilities for these expenditures are recorded on an undiscounted basis (or a discounted basis when the obligation can be settled at fixed and determinable amounts) when environmental assessments or clean-ups are probable and the costs can be reasonably estimated. |
Unit-Based Awards | Unit-Based AwardsWe recognize compensation cost related to all unit-based awards in our consolidated financial statements in accordance with ASC 718. Unit-based compensation associated with ENLC’s unit-based compensation plan awarded to directors, officers, and employees of the General Partner is recorded by ENLK since ENLC has no substantial or managed operating activities other than its interests in ENLK. |
Commitments and Contingencies | Commitments and ContingenciesLiabilities for loss contingencies arising from claims, assessments, litigation, or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with a loss contingency are expensed as incurred. |
Debt Issuance Costs | Debt Issuance CostsCosts incurred in connection with the issuance of long-term debt are deferred and amortized into interest expense using the straight-line method over the term of the related debt. Gains or losses on debt repurchases, redemptions, and debt extinguishments include any associated unamortized debt issue costs. |
Redeemable Non-Controlling Interest | Redeemable Non-Controlling InterestNon-controlling interests that contain an option for the non-controlling interest holder to require us to purchase such interests for cash are considered to be redeemable non-controlling interests because the redemption feature is not deemed to be a freestanding financial instrument and because the redemption is not solely within our control. Redeemable non-controlling interests are not considered to be a component of members’ equity and are reported as temporary equity in the mezzanine section on the consolidated balance sheets. The amount recorded as redeemable non-controlling interest at each balance sheet date is the greater of the redemption value and the carrying value of the redeemable non-controlling interest (the initial carrying value increased or decreased for the non-controlling interest holder’s share of net income or loss and distributions). When the redemption feature is exercised the redemption value of the non-controlling interest is reclassified to a liability on the consolidated balance sheets. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table summarizes the contractually committed fees (in millions) that we expect to recognize in our consolidated statements of operations, in either revenue or reductions to cost of sales, from MVC and firm transportation contractual provisions. Under these agreements, our customers or suppliers agree to transport or process a minimum volume of commodities on our system over an agreed period. If a customer or supplier fails to meet the minimum volume specified in such agreement, the customer or supplier is obligated to pay a contractually determined fee based upon the shortfall between actual volumes and the contractually stated volumes. All amounts in the table below are determined using the contractually-stated MVC or firm transportation volumes specified for each period multiplied by the relevant deficiency or reservation fee. Actual amounts could differ due to the timing of revenue recognition or reductions to cost of sales resulting from make-up right provisions included in our agreements, as well as due to nonpayment or nonperformance by our customers. We record revenue under MVC and firm transportation contracts during periods of shortfall when it is known that the customer cannot, or will not, make up the deficiency. These fees do not represent the shortfall amounts we expect to collect under our MVC and firm transportation contracts, as we generally do not expect volume shortfalls to equal the full amount of the contractual MVCs and firm transportation contracts during these periods. Contractually Committed Fees Commitments 2022 $ 138.8 2023 126.5 2024 108.9 2025 63.8 2026 57.8 Thereafter 289.6 Total $ 785.4 |
Schedule of Assets Acquired and Liabilities Assumed | The following table presents the fair value of the identified assets received and liabilities assumed at the acquisition date (in millions): Consideration Cash (including working capital payment) $ 50.6 Installment payable 10.0 Contingent consideration fair value (1) 6.9 Total consideration: $ 67.5 Purchase price allocation Assets acquired: Current assets (including $1.3 million in cash) $ 1.4 Property and equipment 16.3 Intangible assets 50.6 Other assets, net (2) 0.6 Liabilities assumed: Current liabilities (0.8) Other long-term liabilities (2) (0.6) Net assets acquired $ 67.5 ____________________________ (1) The estimated fair value of the Amarillo Rattler, LLC contingent consideration was calculated in accordance with the fair value guidance contained in ASC 820. There are a number of assumptions and estimates factored into these fair values and actual contingent consideration payments could differ from the estimated fair values. (2) “Other assets, net” and “Other long-term liabilities” consist of the right-of-use asset and lease liability, respectively, recorded through the acquisition of Amarillo Rattler, LLC. |
Property, Plant and Equipment | The components of property and equipment, net of accumulated depreciation are as follows (in millions): Year Ended December 31, 2021 2020 Transmission assets $ 1,442.2 $ 1,410.5 Gathering systems 4,903.8 4,782.9 Gas processing plants 4,119.1 4,082.1 Other property and equipment 161.0 161.0 Construction in process 94.2 78.6 Property and equipment 10,720.3 10,515.1 Accumulated depreciation (4,332.0) (3,863.0) Property and equipment, net of accumulated depreciation $ 6,388.3 $ 6,652.1 Depreciation Expense. Depreciation is calculated using the straight-line method based on the estimated useful life of each asset, as follows: Useful Lives Transmission assets 20 - 25 years Gathering systems 20 - 25 years Gas processing plants 20 - 25 years Other property and equipment 3 - 25 years |
Schedule of Gain or Loss on Disposition of Assets | The (gain) loss on disposition of assets are as follows (in millions): Year Ended December 31, 2021 2020 2019 Net book value of assets disposed $ 3.3 $ 36.4 $ 12.4 Less: Proceeds from sales (4.8) (27.6) (14.3) (Gain) loss on disposition of assets $ (1.5) $ 8.8 $ (1.9) |
Schedule of Interest Rate Swaps | During 2021 and 2020, we terminated the interest rate swaps in several increments in connection with repayments of the Term Loan, which was one of our floating-rate, LIBOR-based borrowings. The following table presents the interest rate swaps terminations and the associated cash payments during 2021 and 2020 (in millions): Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 |
Schedules of Concentration of Risk, by Risk Factor | The following customers individually represented greater than 10% of our consolidated revenues during 2021, 2020, or 2019. These customers represented a significant percentage of our consolidated revenues, and the loss of these customers would have a material adverse impact on our results of operations because the revenues and adjusted gross margin received from transactions with these customers is material to us. No other customers represented greater than 10% of our consolidated revenues during the periods presented. Year Ended December 31, 2021 2020 2019 Devon 6.7 % 14.4 % 10.5 % Dow Hydrocarbons and Resources LLC 14.5 % 13.2 % 10.0 % Marathon Petroleum Corporation 13.4 % 12.2 % 13.8 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Value | The following table represents our change in carrying value of intangible assets for the periods stated (in millions): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Year Ended December 31, 2021 Customer relationships, beginning of period $ 1,794.2 $ (668.8) $ 1,125.4 Customer relationships obtained from acquisition of business 50.6 — 50.6 Amortization expense — (126.3) (126.3) Customer relationships, end of period $ 1,844.8 $ (795.1) $ 1,049.7 Year Ended December 31, 2020 Customer relationships, beginning of period $ 1,795.8 $ (545.9) $ 1,249.9 Amortization expense — (123.5) (123.5) Retirements (1) (1.6) 0.6 (1.0) Customer relationships, end of period $ 1,794.2 $ (668.8) $ 1,125.4 Year Ended December 31, 2019 Customer relationships, beginning of period $ 1,795.8 $ (422.2) $ 1,373.6 Amortization expense — (123.7) (123.7) Customer relationships, end of period $ 1,795.8 $ (545.9) $ 1,249.9 ____________________________ (1) Intangible assets retired as a result of the disposition of certain non-core assets. |
Schedule of Amortization Expense | The following table summarizes our estimated aggregate amortization expense for the next five years and thereafter (in millions): 2022 $ 127.6 2023 127.6 2024 127.6 2025 110.3 2026 106.4 Thereafter 450.2 Total $ 1,049.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | Lease balances are recorded on the consolidated balance sheets as follows (in millions): Operating leases: December 31, 2021 December 31, 2020 Other assets, net $ 60.1 $ 59.8 Other current liabilities $ 18.1 $ 16.3 Other long-term liabilities $ 67.1 $ 71.3 Other lease information Weighted-average remaining lease term—Operating leases 10.3 years 11.1 years Weighted-average discount rate—Operating leases 4.9 % 5.1 % |
Lease, Cost | The components of total lease expense are as follows (in millions): Year Ended December 31, 2021 2020 2019 Finance lease expense: Amortization of right-of-use asset $ — $ — $ 5.2 Interest on lease liability — — 0.1 Operating lease expense: Long-term operating lease expense 21.7 23.1 28.7 Short-term lease expense 17.5 22.1 32.0 Variable lease expense 15.6 11.8 7.7 Impairments 0.2 6.8 — Total lease expense $ 55.0 $ 63.8 $ 68.4 |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes the maturity of our lease liability as of December 31, 2021 (in millions): Total 2022 2023 2024 2025 2026 Thereafter Undiscounted operating lease liability $ 115.6 $ 21.1 $ 15.3 $ 10.1 $ 9.8 $ 8.9 $ 50.4 Reduction due to present value (30.4) (3.7) (3.2) (2.8) (2.4) (2.0) (16.3) Operating lease liability $ 85.2 $ 17.4 $ 12.1 $ 7.3 $ 7.4 $ 6.9 $ 34.1 |
Finance Lease, Liability, Maturity | The following table summarizes the maturity of our lease liability as of December 31, 2021 (in millions): Total 2022 2023 2024 2025 2026 Thereafter Undiscounted operating lease liability $ 115.6 $ 21.1 $ 15.3 $ 10.1 $ 9.8 $ 8.9 $ 50.4 Reduction due to present value (30.4) (3.7) (3.2) (2.8) (2.4) (2.0) (16.3) Operating lease liability $ 85.2 $ 17.4 $ 12.1 $ 7.3 $ 7.4 $ 6.9 $ 34.1 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt | As of December 31, 2021 and 2020, long-term debt consisted of the following (in millions): December 31, 2021 December 31, 2020 Outstanding Principal Premium (Discount) Long-Term Debt Outstanding Principal Premium (Discount) Long-Term Debt Term Loan due 2021 (1) $ — $ — $ — $ 350.0 $ — $ 350.0 Consolidated Credit Facility due 2024 (2) 15.0 — 15.0 — — — AR Facility due 2024 (3) 350.0 — 350.0 250.0 — 250.0 ENLK’s 4.40% Senior unsecured notes due 2024 521.8 0.7 522.5 521.8 1.1 522.9 ENLK’s 4.15% Senior unsecured notes due 2025 720.8 (0.4) 720.4 720.8 (0.6) 720.2 ENLK’s 4.85% Senior unsecured notes due 2026 491.0 (0.3) 490.7 491.0 (0.4) 490.6 ENLC’s 5.625% Senior unsecured notes due 2028 500.0 — 500.0 500.0 — 500.0 ENLC’s 5.375% Senior unsecured notes due 2029 498.7 — 498.7 498.7 — 498.7 ENLK’s 5.60% Senior unsecured notes due 2044 350.0 (0.2) 349.8 350.0 (0.2) 349.8 ENLK’s 5.05% Senior unsecured notes due 2045 450.0 (5.5) 444.5 450.0 (5.7) 444.3 ENLK’s 5.45% Senior unsecured notes due 2047 500.0 (0.1) 499.9 500.0 (0.1) 499.9 Debt classified as long-term $ 4,397.3 $ (5.8) 4,391.5 $ 4,632.3 $ (5.9) 4,626.4 Debt issuance costs (4) (27.8) (32.6) Less: Current maturities of long-term debt (1) — (349.8) Long-term debt, net of unamortized issuance cost $ 4,363.7 $ 4,244.0 ____________________________ (1) Bore interest prior to its maturity based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was 1.7% at December 31, 2020. The Term Loan was repaid at maturity on December 10, 2021. The outstanding principal balance, net of debt issuance costs, was classified as “Current maturities of long-term debt” on the consolidated balance sheet as of December 31, 2020. (2) Bears interest based on Prime and/or LIBOR plus an applicable margin. The effective interest rate was 3.9% at December 31, 2021. (3) Bears interest based on LMIR and/or LIBOR plus an applicable margin. The effective interest rate was 1.2% and 2.0% at December 31, 2021 and 2020, respectively. Issuance Maturity Date of Notes Early Redemption Date Basis Point Premium 2024 Notes April 1, 2024 Prior to January 1, 2024 25 Basis Points 2025 Notes June 1, 2025 Prior to March 1, 2025 30 Basis Points 2026 Notes July 15, 2026 Prior to April 15, 2026 50 Basis Points 2028 Notes January 15, 2028 Prior to July 15, 2027 50 Basis Points 2029 Notes June 1, 2029 Prior to March 1, 2029 50 Basis Points 2044 Notes April 1, 2044 Prior to October 1, 2043 30 Basis Points 2045 Notes April 1, 2045 Prior to October 1, 2044 30 Basis Points 2047 Notes June 1, 2047 Prior to December 1, 2046 40 Basis Points Year Ended December 31, 2020 Debt repurchased $ 67.7 Aggregate payments (36.0) Net discount on repurchased debt (0.3) Accrued interest on repurchased debt 0.6 Gain on extinguishment of debt $ 32.0 |
Schedule of Maturities of Long-term Debt | Maturities for the long-term debt as of December 31, 2021 are as follows (in millions): 2022 $ — 2023 — 2024 886.8 2025 720.8 2026 491.0 Thereafter 2,298.7 Subtotal 4,397.3 Less: net discount (5.8) Less: debt issuance cost (27.8) Long-term debt, net of unamortized issuance cost $ 4,363.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of our income tax expense are as follows (in millions): Year Ended December 31, 2021 2020 2019 Current income tax expense $ (0.8) $ (1.1) $ — Deferred tax expense (24.6) (142.1) (6.9) Total income tax expense $ (25.4) $ (143.2) $ (6.9) |
Reconciliation of Total Income Tax Expense to Income before Income Taxes | The following schedule reconciles total income tax expense and the amount calculated by applying the statutory U.S. federal tax rate to income before income taxes (in millions): Year Ended December 31, 2021 2020 2019 Expected income tax benefit (expense) based on federal statutory tax rate $ (10.0) $ 58.5 $ 233.6 State income tax benefit (expense), net of federal benefit (1.4) 6.5 27.0 Unit-based compensation (1) (3.1) (6.0) (2.2) Non-deductible expense related to impairments — (43.4) (264.5) Statutory rate changes (2)(3) (10.2) — — Change in valuation allowance (3) 1.7 (153.3) — Other (2.4) (5.5) (0.8) Total income tax expense $ (25.4) $ (143.2) $ (6.9) ____________________________ (1) Related to book-to-tax differences recorded upon the vesting of restricted incentive units. (2) Effective January 1, 2022, Oklahoma House Bill 2960 resulted in a change in the corporate income tax rate from 6% to 4% and Louisiana Senate Bill No. 159 resulted in a change in the corporate income tax rate from 8% to 7.5%. Accordingly, we recorded deferred tax expense related to our Oklahoma and Louisiana operations in the amount of $7.6 million and $2.6 million, respectively, for the year ended December 31, 2021 due to a remeasurement of deferred tax assets. |
Schedule of Deferred Tax Assets and Liabilities | ur deferred income tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in millions): December 31, 2021 December 31, 2020 Deferred income tax assets: Federal net operating loss carryforward $ 573.6 $ 488.3 State net operating loss carryforward 59.6 61.0 Total deferred tax assets, gross 633.2 549.3 Valuation allowance (151.6) (153.3) Total deferred tax assets, net of valuation allowance 481.6 396.0 Deferred tax liabilities: Property, plant, equipment, and intangible assets (1) (619.1) (504.6) Total deferred tax liabilities (619.1) (504.6) Deferred tax liability, net $ (137.5) $ (108.6) ____________________________ (1) Includes our investment in ENLK and primarily relates to differences between the book and tax bases of property and equipment . |
Certain Provisions of the Par_2
Certain Provisions of the Partnership Agreement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Partners' Capital [Abstract] | |
Summary of Distribution Activity | A summary of the distribution activity relating to the Series B Preferred Units for the years ended December 31, 2021, 2020, and 2019 is provided below: Declaration period Distribution Cash distribution Date paid/payable 2021 First Quarter of 2021 150,871 $ 17.0 May 14, 2021 Second Quarter of 2021 151,248 $ 17.0 August 13, 2021 Third Quarter of 2021 151,626 $ 17.1 November 12, 2021 Fourth Quarter of 2021 — $ 19.2 February 11, 2022 (1) 2020 First Quarter of 2020 149,371 $ 16.8 May 13, 2020 Second Quarter of 2020 149,745 $ 16.8 August 13, 2020 Third Quarter of 2020 150,119 $ 16.9 November 13, 2020 Fourth Quarter of 2020 150,494 $ 16.9 February 12, 2021 2019 First Quarter of 2019 147,887 $ 16.7 May 14, 2019 Second Quarter of 2019 148,257 $ 17.1 August 13, 2019 Third Quarter of 2019 148,627 $ 17.1 November 13, 2019 Fourth Quarter of 2019 148,999 $ 16.8 February 13, 2020 ____________________________ |
Members' Equity (Tables)
Members' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Limited Partner Unit | As required under ASC 260, Earnings Per Share , unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities for earnings per unit calculations. The following table reflects the computation of basic and diluted earnings per unit for the periods presented (in millions, except per unit amounts): Year Ended December 31, 2021 2020 2019 Distributed earnings allocated to: Common units (1) $ 192.5 $ 183.5 $ 479.0 Unvested restricted units (1) 4.5 3.1 5.7 Total distributed earnings $ 197.0 $ 186.6 $ 484.7 Undistributed loss allocated to: Common units $ (170.6) $ (598.4) $ (1,584.8) Unvested restricted units (4.0) (9.7) (19.2) Total undistributed loss $ (174.6) $ (608.1) $ (1,604.0) Net income (loss) attributable to ENLC allocated to: Common units $ 21.9 $ (414.9) $ (1,105.8) Unvested restricted units 0.5 (6.6) (13.5) Total net income (loss) attributable to ENLC $ 22.4 $ (421.5) $ (1,119.3) Basic and diluted net income (loss) per unit attributable to ENLC: Basic $ 0.05 $ (0.86) $ (2.41) Diluted $ 0.05 $ (0.86) $ (2.41) ____________________________ (1) Represents distribution activity consistent with the distribution activity table below. The following are the unit amounts used to compute the basic and diluted earnings per unit for the periods presented (in millions): Year Ended December 31, 2021 2020 2019 Basic weighted average units outstanding: Weighted average common units outstanding 488.8 489.3 463.9 Diluted weighted average units outstanding: Weighted average basic common units outstanding 488.8 489.3 463.9 Dilutive effect of non-vested restricted units (1) 5.5 — — Total weighted average diluted common units outstanding 494.3 489.3 463.9 ____________________________ (1) For the years ended December 31, 2020 and 2019, all common unit equivalents were antidilutive because a net loss existed for those periods. |
Summary of Distribution Activity | A summary of our distribution activity related to the ENLC common units for the years ended December 31, 2021, 2020, and 2019, respectively, is provided below: Declaration period Distribution/unit Date paid/payable 2021 First Quarter of 2021 $ 0.09375 May 14, 2021 Second Quarter of 2021 $ 0.09375 August 13, 2021 Third Quarter of 2021 $ 0.09375 November 12, 2021 Fourth Quarter of 2021 $ 0.11250 February 11, 2022 2020 First Quarter of 2020 $ 0.09375 May 13, 2020 Second Quarter of 2020 $ 0.09375 August 13, 2020 Third Quarter of 2020 $ 0.09375 November 13, 2020 Fourth Quarter of 2020 $ 0.09375 February 12, 2021 2019 First Quarter of 2019 $ 0.279 May 14, 2019 Second Quarter of 2019 $ 0.283 August 13, 2019 Third Quarter of 2019 $ 0.283 November 13, 2019 Fourth Quarter of 2019 $ 0.1875 February 13, 2020 |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Activity Related to Investments in Unconsolidated Affiliates | The following table shows the activity related to our investment in unconsolidated affiliates for the periods indicated (in millions): Year Ended December 31, 2021 2020 2019 GCF Distributions $ 3.5 $ 1.6 $ 19.2 Equity in income (loss) $ (9.1) $ 3.0 $ 16.5 Cedar Cove JV Distributions $ 0.4 $ 0.5 $ 1.0 Equity in loss (1) $ (2.4) $ (2.4) $ (33.3) Total Distributions $ 3.9 $ 2.1 $ 20.2 Equity in income (loss) (1) $ (11.5) $ 0.6 $ (16.8) ___________________________ (1) Includes a loss of $31.4 million for the year ended December 31, 2019 related to the impairment of the carrying value of the Cedar Cove JV, as we determined that the carrying value of our investment was not recoverable based on the forecasted cash flows from the Cedar Cove JV. The following table shows the balances related to our investment in unconsolidated affiliates as of December 31, 2021 and 2020 (in millions): December 31, 2021 December 31, 2020 GCF $ 28.0 $ 40.6 Cedar Cove JV (1) (1.8) 1.0 Total investment in unconsolidated affiliates $ 26.2 $ 41.6 ___________________________ |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Amounts Recognized in Consolidated Financial Statements | Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions): Year Ended December 31, 2021 2020 2019 Cost of unit-based compensation charged to general and administrative expense $ 18.7 $ 21.3 $ 32.7 Cost of unit-based compensation charged to operating expense 6.6 7.1 6.7 Total unit-based compensation expense $ 25.3 $ 28.4 $ 39.4 Non-controlling interest in unit-based compensation $ — $ — $ 0.5 Amount of related income tax benefit recognized in net income (loss) (1) $ 5.9 $ 6.7 $ 9.1 ____________________________ |
Summary of Restricted Incentive Unit Activity | A summary of the restricted incentive unit activity for the year ended December 31, 2021 is provided below: Year Ended December 31, 2021 ENLC Restricted Incentive Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 5,350,086 $ 8.45 Granted (1) 3,937,301 3.86 Vested (1)(2) (1,268,801) 12.85 Forfeited (511,115) 6.10 Non-vested, end of period 7,507,471 $ 5.46 Aggregate intrinsic value, end of period (in millions) $ 51.7 ____________________________ (1) Restricted incentive units typically vest at the end of three years. |
Summary of Restricted Units' Aggregate Intrinsic Value | A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2021, 2020, and 2019 is provided below (in millions): Year Ended December 31, ENLC Restricted Incentive Units: 2021 2020 2019 Aggregate intrinsic value of units vested $ 5.6 $ 12.1 $ 17.3 Fair value of units vested $ 16.3 $ 31.5 $ 22.8 |
Summary of Grant-Date Fair Values | The following table sets out the levels at which the Tranche TSR Units may vest (using linear interpolation) based on the ENLC TSR percentile ranking for the applicable performance period relative to the TSR achievement of the Designated Peer Companies: Performance Level Achieved ENLC TSR Vesting percentage Below Threshold Less than 25% 0% Threshold Equal to 25% 50% Target Equal to 50% 100% Maximum Greater than or Equal to 75% 200% Performance Level ENLC’s Achieved FCFAD Vesting percentage Below Threshold Less than $205 million 0% Threshold Equal to $205 million 50% Target Equal to $256 million 100% Maximum Greater than or Equal to $300 million 200% The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the cash flow performance of ENLC for the performance period ending December 31, 2020: Performance Level ENLC’s Achieved Vesting percentage Below Threshold Less than $1.345 0% Threshold Equal to $1.345 50% Target Equal to $1.494 100% Maximum Greater than or Equal to $1.643 200% The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the cash flow performance of ENLC for the performance period ending December 31, 2019: Performance Level ENLC’s Achieved Vesting percentage Below Threshold Less than $1.43 0% Threshold Equal to $1.43 50% Target Equal to $1.55 100% Maximum Greater than or Equal to $1.72 200% The fair value of each performance unit is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all performance unit grants made under the plan: (i) a risk-free interest rate based on United States Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of ENLC’s common units and the Designated Peer Companies’ or Peer Companies’ securities as applicable; (iii) an estimated ranking of ENLC (or for outstanding performance units granted prior to the Merger, ENLC and ENLK) among the Designated Peer Companies or Peer Companies, and (iv) the distribution yield. The fair value of the performance unit on the date of grant is expensed over a vesting period of approximately three years. The following table presents a summary of the grant-date fair value assumptions by performance unit grant date: ENLC Performance Units: January 2021 July 2020 March 2020 January 2020 October 2019 June 2019 March 2019 Grant-date fair value $ 4.70 $ 2.33 $ 1.13 $ 7.69 $ 7.29 $ 9.92 $ 13.10 Beginning TSR price $ 3.71 $ 2.52 $ 1.25 $ 6.13 $ 7.42 $ 9.84 $ 10.92 Risk-free interest rate 0.17 % 0.17 % 0.42 % 1.62 % 1.44 % 1.72 % 2.42 % Volatility factor 71.00 % 67.00 % 51.00 % 37.00 % 35.00 % 33.50 % 33.86 % |
Summary of Performance Units | The following table presents a summary of the performance units: Year Ended December 31, 2021 ENLC Performance Units: Number of Units Weighted Average Grant-Date Fair Value Non-vested, beginning of period 2,351,241 $ 8.82 Granted 1,388,139 4.70 Vested (1) (164,553) 26.73 Non-vested, end of period 3,574,827 $ 6.40 Aggregate intrinsic value, end of period (in millions) $ 24.6 ____________________________ (1) Vested units included 63,901 units withheld for payroll taxes paid on behalf of employees. A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2021, 2020, and 2019 is provided below (in millions). Year Ended December 31, ENLC Performance Units: 2021 2020 2019 Aggregate intrinsic value of units vested $ 0.6 $ 0.9 $ 3.4 Fair value of units vested $ 4.4 $ 5.5 $ 7.9 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swaps | During 2021 and 2020, we terminated the interest rate swaps in several increments in connection with repayments of the Term Loan, which was one of our floating-rate, LIBOR-based borrowings. The following table presents the interest rate swaps terminations and the associated cash payments during 2021 and 2020 (in millions): Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 Interest Rate Swaps Terminations Cash Payments Associated with Interest Rate Swaps Terminations December 2021 $ 150.0 $ — September 2021 100.0 0.5 May 2021 100.0 1.3 December 2020 500.0 10.9 Total termination of interest rate swaps $ 850.0 $ 12.7 |
Components of Gain (Loss) on Derivative Activity | The components of the unrealized gain (loss) on designated cash flow hedge related to changes in the fair value of our interest rate swaps were as follows (in millions): Year Ended December 31, 2021 2020 2019 Change in fair value of interest rate swaps $ 18.2 $ (5.6) $ (12.4) Tax benefit (expense) (4.3) 1.3 3.4 Unrealized gain (loss) on designated cash flow hedge $ 13.9 $ (4.3) $ (9.0) The interest expense, recognized from accumulated other comprehensive loss from the monthly settlement of our interest rate swaps and amortization of the termination payments, included in our consolidated statements of operations were as follows (in millions): Year Ended December 31, 2021 2020 2019 Interest expense $ 18.3 $ 14.5 $ 0.4 The components of gain (loss) on derivative activity in the consolidated statements of operations related to commodity swaps are (in millions): Year Ended December 31, 2021 2020 2019 Change in fair value of derivatives $ (12.4) $ (10.5) $ (0.1) Realized gain (loss) on derivatives (146.7) (11.5) 14.5 Gain (loss) on derivative activity $ (159.1) $ (22.0) $ 14.4 |
Fair Value of Derivative Assets and Liabilities Related to Commodity Swaps | The fair value of our interest rate swaps included in our consolidated balance sheets were as follows (in millions): December 31, 2021 December 31, 2020 Fair value of derivative liabilities—current $ — $ (7.6) The fair value of derivative assets and liabilities related to commodity swaps are as follows (in millions): December 31, 2021 December 31, 2020 Fair value of derivative assets—current $ 22.4 $ 25.0 Fair value of derivative assets—long-term 0.2 4.9 Fair value of derivative liabilities—current (34.9) (29.5) Fair value of derivative liabilities—long-term (2.2) (2.5) Net fair value of commodity swaps $ (14.5) $ (2.1) |
Notional Amount and Fair Value of Derivative Instruments | Set forth below are the summarized notional volumes and fair values of all instruments related to commodity swaps that we held for price risk management purposes and the related physical offsets at December 31, 2021 (in millions). The remaining term of the contracts extend no later than January 2023. December 31, 2021 Commodity Instruments Unit Volume Net Fair Value NGL (short contracts) Swaps Gals (63.0) $ (10.6) NGL (long contracts) Swaps Gals — — Natural gas (short contracts) Swaps MMbtu (7.5) 2.7 Natural gas (long contracts) Swaps MMbtu 13.2 (7.8) Crude and condensate (short contracts) Swaps MMbbls (3.9) (4.4) Crude and condensate (long contracts) Swaps MMbbls 3.9 5.6 Total fair value of commodity swaps $ (14.5) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Net Assets (Liabilities) Measured on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions): Level 2 December 31, 2021 December 31, 2020 Interest rate swaps (1) $ — $ (7.6) Commodity swaps (2) $ (14.5) $ (2.1) ____________________________ (1) The fair values of the interest rate swaps are estimated based on the difference between expected cash flows calculated at the contracted interest rates and the expected cash flows using observable benchmarks for the variable interest rates. |
Schedule of the Estimated Fair Value of Financial Instruments | Considerable judgment is required to develop the estimates of fair value; thus, the estimates provided below are not necessarily indicative of the amount we could realize upon the sale or refinancing of such financial instruments (in millions): December 31, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Long-term debt (1) $ 4,363.7 $ 4,520.0 $ 4,593.8 $ 4,318.2 Installment payab1e (2) $ 10.0 $ 10.0 $ — $ — Contingent consideration (2) $ 6.9 $ 6.9 $ — $ — ____________________________ (1) The carrying value of long-term debt as of December 31, 2020 includes current maturities. The carrying value of the long-term debt is reduced by debt issuance costs of $27.8 million and $32.6 million at December 31, 2021 and 2020, respectively. The respective fair values do not factor in debt issuance costs. (2) Consideration paid for the acquisition of Amarillo Rattler, LLC included $10.0 million to be paid on April 30, 2022 and a contingent consideration capped at $15.0 million and payable between 2024 and 2026 based on Diamondback Energy’s drilling activity above historical levels. Estimated fair values were calculated using a discounted cash flow analysis that utilized Level 3 inputs. For additional information regarding this transaction, refer to “Note 2—Significant Accounting Policies.” |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Financial Information | Summarized financial information for our reportable segments is shown in the following tables (in millions): Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2021 Natural gas sales $ 609.4 $ 693.5 $ 213.4 $ 150.0 $ — $ 1,666.3 NGL sales 0.9 3,353.1 2.0 1.1 — 3,357.1 Crude oil and condensate sales 677.4 212.0 81.2 — — 970.6 Product sales 1,287.7 4,258.6 296.6 151.1 — 5,994.0 NGL sales—related parties 1,008.4 129.7 630.8 447.0 (2,215.9) — Crude oil and condensate sales—related parties — — 0.1 7.1 (7.2) — Product sales—related parties 1,008.4 129.7 630.9 454.1 (2,223.1) — Gathering and transportation 46.8 64.7 186.9 157.0 — 455.4 Processing 29.1 2.4 98.7 108.3 — 238.5 NGL services — 82.6 — 0.3 — 82.9 Crude services 18.4 39.3 12.8 0.7 — 71.2 Other services 0.2 1.7 0.6 0.5 — 3.0 Midstream services 94.5 190.7 299.0 266.8 — 851.0 Crude services—related parties — — 0.3 — (0.3) — Other services—related parties — 2.4 — — (2.4) — Midstream services—related parties — 2.4 0.3 — (2.7) — Revenue from contracts with customers 2,390.6 4,581.4 1,226.8 872.0 (2,225.8) 6,845.0 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (1,996.1) (4,091.2) (796.6) (531.8) 2,225.8 (5,189.9) Realized loss on derivatives (75.6) (42.3) (22.6) (6.2) — (146.7) Change in fair value of derivatives (7.7) 0.7 — (5.4) — (12.4) Adjusted gross margin 311.2 448.6 407.6 328.6 — 1,496.0 Operating expenses (81.5) (123.7) (80.0) (77.7) — (362.9) Segment profit 229.7 324.9 327.6 250.9 — 1,133.1 Depreciation and amortization (139.9) (141.0) (204.3) (114.3) (8.0) (607.5) Impairments — (0.6) — — (0.2) (0.8) Gain on disposition of assets — 1.2 — 0.3 — 1.5 General and administrative — — — — (107.8) (107.8) Interest expense, net of interest income — — — — (238.7) (238.7) Loss from unconsolidated affiliates — — — — (11.5) (11.5) Income (loss) before non-controlling interest and income taxes $ 89.8 $ 184.5 $ 123.3 $ 136.9 $ (366.2) $ 168.3 Capital expenditures $ 141.6 $ 9.3 $ 30.4 $ 11.9 $ 2.8 $ 196.0 ____________________________ (1) Includes related party cost of sales of $17.9 million for the year ended December 31, 2021. Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2020 Natural gas sales $ 150.1 $ 330.5 $ 153.1 $ 70.3 $ — $ 704.0 NGL sales 0.2 1,545.4 2.8 — — 1,548.4 Crude oil and condensate sales 558.1 126.7 40.3 — — 725.1 Product sales 708.4 2,002.6 196.2 70.3 — 2,977.5 NGL sales—related parties 312.6 31.4 296.4 115.2 (755.6) — Crude oil and condensate sales—related parties 0.6 — (0.1) 3.6 (4.1) — Product sales—related parties 313.2 31.4 296.3 118.8 (759.7) — Gathering and transportation 42.8 46.5 228.7 179.2 — 497.2 Processing 24.1 2.0 123.6 132.6 — 282.3 NGL services — 75.8 — 0.2 — 76.0 Crude services 16.8 45.2 16.5 0.2 — 78.7 Other services 1.2 1.6 0.4 0.9 — 4.1 Midstream services 84.9 171.1 369.2 313.1 — 938.3 Crude services—related parties — — 0.3 — (0.3) — Midstream services—related parties — — 0.3 — (0.3) — Revenue from contracts with customers 1,106.5 2,205.1 862.0 502.2 (760.0) 3,915.8 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (842.2) (1,787.0) (365.5) (153.8) 760.0 (2,388.5) Realized loss on derivatives (1.1) (6.0) (4.4) — — (11.5) Change in fair value of derivatives 1.1 (6.5) (4.5) (0.6) — (10.5) Adjusted gross margin 264.3 405.6 487.6 347.8 — 1,505.3 Operating expenses (94.2) (120.0) (82.2) (77.4) — (373.8) Segment profit 170.1 285.6 405.4 270.4 — 1,131.5 Depreciation and amortization (125.2) (145.8) (216.9) (143.4) (7.3) (638.6) Impairments (184.6) (170.0) (0.7) — (7.5) (362.8) Gain (loss) on disposition of assets (11.2) 0.1 0.3 2.0 — (8.8) General and administrative — — — — (103.3) (103.3) Interest expense, net of interest income — — — — (223.3) (223.3) Gain on extinguishment of debt — — — — 32.0 32.0 Income from unconsolidated affiliates — — — — 0.6 0.6 Other income — — — — 0.3 0.3 Income (loss) before non-controlling interest and income taxes $ (150.9) $ (30.1) $ 188.1 $ 129.0 $ (308.5) $ (172.4) Capital expenditures $ 181.1 $ 44.6 $ 17.9 $ 16.9 $ 2.1 $ 262.6 ____________________________ (1) Includes related party cost of sales of $8.7 million for the year ended December 31, 2020. Permian Louisiana Oklahoma North Texas Corporate Totals Year Ended December 31, 2019 Natural gas sales $ 94.3 $ 416.6 $ 236.4 $ 129.3 $ — $ 876.6 NGL sales 0.9 1,725.6 19.6 30.9 — 1,777.0 Crude oil and condensate sales 1,975.0 291.9 109.6 — — 2,376.5 Product sales 2,070.2 2,434.1 365.6 160.2 — 5,030.1 Natural gas sales—related parties 0.4 — — — (0.4) — NGL sales—related parties 347.7 25.7 421.1 94.8 (889.3) — Crude oil and condensate sales—related parties 13.5 1.7 — 5.5 (20.7) — Product sales—related parties 361.6 27.4 421.1 100.3 (910.4) — Gathering and transportation 48.8 58.3 234.5 196.4 — 538.0 Processing 30.5 3.2 138.2 143.0 — 314.9 NGL services — 50.6 — 0.1 — 50.7 Crude services 19.2 51.9 19.8 — — 90.9 Other services 12.0 0.7 0.1 1.1 — 13.9 Midstream services 110.5 164.7 392.6 340.6 — 1,008.4 NGL services—related parties — (3.4) — — 3.4 — Crude services—related parties — — 1.8 — (1.8) — Midstream services—related parties — (3.4) 1.8 — 1.6 — Revenue from contracts with customers 2,542.3 2,622.8 1,181.1 601.1 (908.8) 6,038.5 Cost of sales, exclusive of operating expenses and depreciation and amortization (1) (2,283.9) (2,181.6) (627.0) (208.8) 908.8 (4,392.5) Realized gain on derivatives 9.4 5.1 — — — 14.5 Change in fair value of derivatives 1.5 (1.8) — 0.2 — (0.1) Adjusted gross margin 269.3 444.5 554.1 392.5 — 1,660.4 Operating expenses (112.9) (147.3) (104.0) (102.9) — (467.1) Segment profit 156.4 297.2 450.1 289.6 — 1,193.3 Depreciation and amortization (119.8) (154.1) (194.9) (139.8) (8.4) (617.0) Impairments (3.5) (188.7) (813.5) (127.8) — (1,133.5) Gain (loss) on disposition of assets (0.3) 2.6 0.1 (0.5) — 1.9 General and administrative — — — — (152.6) (152.6) Loss on secured term loan receivable — — — — (52.9) (52.9) Interest expense, net of interest income — — — — (216.0) (216.0) Loss from unconsolidated affiliates — — — — (16.8) (16.8) Other income — — — — 0.9 0.9 Income (loss) before non-controlling interest and income taxes $ 32.8 $ (43.0) $ (558.2) $ 21.5 $ (445.8) $ (992.7) Capital expenditures $ 364.5 $ 99.9 $ 238.1 $ 39.0 $ 6.9 $ 748.4 ____________________________ (1) Includes related party cost of sales of $21.7 million for the year ended December 31, 2019. |
Schedule of Segment Assets | The table below represents information about segment assets as of December 31, 2021 and 2020 (in millions): Segment Identifiable Assets: December 31, 2021 December 31, 2020 Permian $ 2,358.6 $ 2,236.3 Louisiana 2,428.6 2,312.4 Oklahoma 2,619.5 2,847.6 North Texas 896.8 1,008.6 Corporate (1) 179.7 146.0 Total identifiable assets $ 8,483.2 $ 8,550.9 ____________________________ |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Non-Cash Financing Activities | The following schedule summarizes cash paid for interest, cash paid for income taxes, cash paid for finance leases included in cash flows from financing activities, cash paid for operating leases included in cash flows from operating activities, non-cash investing activities, and non-cash financing activities for the periods presented (in millions): Year Ended December 31, Supplemental disclosures of cash flow information: 2021 2020 2019 Cash paid for interest $ 208.8 $ 207.3 $ 218.9 Cash paid (refunded) for income taxes $ 0.3 $ (0.7) $ 4.0 Cash paid for finance leases included in cash flows from financing activities $ — $ — $ 1.2 Cash paid for operating leases included in cash flows from operating activities $ 24.6 $ 24.6 $ 29.8 Non-cash investing activities: Non-cash accrual of property and equipment $ 12.0 $ (39.6) $ (6.5) Non-cash right-of-use assets obtained in exchange for operating lease liabilities $ 18.7 $ 9.8 $ 104.1 Non-cash acquisitions $ 16.9 $ — $ — Non-cash financing activities: Receivable from sale of VEX $ — $ 10.0 $ — Redemption of non-controlling interest $ — $ (4.0) $ — |
Other Information (Tables)
Other Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Assets | The following tables present additional detail for other current assets and other current liabilities, which consists of the following (in millions): Other current assets: December 31, 2021 December 31, 2020 Natural gas and NGLs inventory $ 49.4 $ 44.9 Prepaid expenses and other 34.2 13.8 Other current assets $ 83.6 $ 58.7 |
Schedule of Other Current Liabilities | Other current liabilities: December 31, 2021 December 31, 2020 Accrued interest $ 47.2 $ 35.7 Accrued wages and benefits, including taxes 33.1 22.5 Accrued ad valorem taxes 28.3 26.5 Capital expenditure accruals 23.2 10.6 Short-term lease liability 18.1 16.3 Installment payable (1) 10.0 — Inactive easement commitment (2) 9.8 — Operating expense accruals 9.6 8.4 Other 23.6 29.1 Other current liabilities $ 202.9 $ 149.1 ____________________________ (1) Consideration paid for the acquisition of Amarillo Rattler, LLC included an installment payable to be paid on April 30, 2022. |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) bbl in Thousands, $ in Millions | Jan. 25, 2019USD ($)shares | Jul. 18, 2018 | Dec. 31, 2021Bcf / dprocessingPlantfractionatormibbl |
Related Party Transaction [Line Items] | |||
Common units conversion ratio | 1.15 | ||
Increase (decrease) in deferred income taxes | $ | $ 399 | ||
Number of miles of pipeline | mi | 12,100 | ||
Number of natural gas processing plants | processingPlant | 22 | ||
Amount of processing capacity | Bcf / d | 5.5 | ||
Number of fractionators | fractionator | 7 | ||
Capacity of fractionators per day, barrels | bbl | 320 | ||
Merger | |||
Related Party Transaction [Line Items] | |||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | shares | 304,822,035 | ||
EnLink Midstream Partners, LP | |||
Related Party Transaction [Line Items] | |||
Common units conversion ratio | 1.15 | ||
EnLink Midstream Partners GP, LLC | GIP Stetson I | |||
Related Party Transaction [Line Items] | |||
Membership interest in the General Partner as a percent | 100.00% | ||
EnLink Midstream Partners, LP | GIP Stetson I | |||
Related Party Transaction [Line Items] | |||
Membership interest in the General Partner as a percent | 23.10% | ||
ENLC | GIP Stetson II | |||
Related Party Transaction [Line Items] | |||
Membership interest in the General Partner as a percent | 63.80% |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2019 | Apr. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||||||
Financing receivable, gross | $ 58,000,000 | |||||
Loss on secured term loan receivable | $ 0 | $ 0 | $ 52,900,000 | |||
Net book value of assets disposed | 3,300,000 | 36,400,000 | 12,400,000 | |||
Proceeds from sales | 4,800,000 | 27,600,000 | 14,300,000 | |||
(Gain) loss on disposition of assets | 1,500,000 | (8,800,000) | 1,900,000 | |||
Tangible asset impairment charges | 7,900,000 | |||||
Derivative, notional amount | $ 850,000,000 | |||||
Derivative, fixed interest rate | 2.28% | |||||
Interest Rate Swaps Terminations | 850,000,000 | |||||
Allowance for doubtful accounts receivable | 300,000 | 500,000 | ||||
Environmental remediation expense | 0 | 0 | 0 | |||
Debt issuance costs, noncurrent, net | 27,800,000 | 32,600,000 | ||||
Installment payable | 10,000,000 | 0 | ||||
Amarillo Rattler, LLC | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Cash | $ 50,000,000 | |||||
Installment payable | 10,000,000 | 10,000,000 | ||||
Business combination, maximum earnout | $ 15,000,000 | |||||
Certain Cancelled Projects | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Tangible asset impairment charges | 3,400,000 | |||||
Redeemable Non-controlling interest (Temporary Equity) | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Partners' capital account, redemptions | (4,000,000) | |||||
Louisiana | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Loss on secured term loan receivable | 0 | |||||
Tangible asset impairment charges | 600,000 | 168,000,000 | ||||
Cedar Cove JV | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Tangible asset impairment charges | $ 31,400,000 | 31,400,000 | ||||
Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Intangible asset, useful life | 10 years | |||||
Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Intangible asset, useful life | 20 years | |||||
EnLink Midstream Partners, LP | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Gas balancing payable | $ 16,300,000 | 6,100,000 | ||||
Gas balancing receivable | $ 14,500,000 | $ 7,500,000 | ||||
Delaware Basin JV | NPG | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Noncontrolling interest, ownership percentage by parent | 49.90% | |||||
Ascension JV | Marathon Petroleum Corporation | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Noncontrolling interest, ownership percentage by parent | 50.00% | |||||
White Star | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Loss on secured term loan receivable | $ 52,900,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Remaining Performance Obligations (Details) $ in Millions | Dec. 31, 2021USD ($) |
Accounting Policies [Abstract] | |
Revenue, remaining performance obligation | $ 785.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Accounting Policies [Abstract] | |
Revenue, remaining performance obligation | $ 138.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Accounting Policies [Abstract] | |
Revenue, remaining performance obligation | $ 126.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Accounting Policies [Abstract] | |
Revenue, remaining performance obligation | $ 108.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Accounting Policies [Abstract] | |
Revenue, remaining performance obligation | $ 63.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Accounting Policies [Abstract] | |
Revenue, remaining performance obligation | $ 57.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Accounting Policies [Abstract] | |
Revenue, remaining performance obligation | $ 289.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Significant Accounting Polici_6
Significant Accounting Policies - Fair Value of Identified Assets Received and Liabilities Assumed (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Consideration | |||
Installment payable | $ 10 | $ 0 | |
Amarillo Rattler, LLC | |||
Consideration | |||
Cash (including working capital payment) | $ 50.6 | ||
Installment payable | 10 | $ 10 | |
Contingent consideration fair value | 6.9 | ||
Total consideration: | 67.5 | ||
Purchase price allocation | |||
Cash acquired | 1.3 | ||
Current assets (including $1.3 million in cash) | 1.4 | ||
Property and equipment | 16.3 | ||
Intangible assets | 50.6 | ||
Other assets, net | 0.6 | ||
Current liabilities | (0.8) | ||
Other long-term liabilities | (0.6) | ||
Net assets acquired | $ 67.5 |
Significant Accounting Polici_7
Significant Accounting Policies - Components of Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 10,720.3 | $ 10,515.1 |
Accumulated depreciation | (4,332) | (3,863) |
Property and equipment, net of accumulated depreciation | 6,388.3 | 6,652.1 |
Transmission assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,442.2 | 1,410.5 |
Transmission assets | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 20 years | |
Transmission assets | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Gathering systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 4,903.8 | 4,782.9 |
Gathering systems | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 20 years | |
Gathering systems | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Gas processing plants | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 4,119.1 | 4,082.1 |
Gas processing plants | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 20 years | |
Gas processing plants | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Other property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 161 | 161 |
Other property and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Other property and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 94.2 | $ 78.6 |
Significant Accounting Polici_8
Significant Accounting Policies - (Gain) Loss on Disposition of Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Net book value of assets disposed | $ 3.3 | $ 36.4 | $ 12.4 |
Proceeds from sales | (4.8) | (27.6) | (14.3) |
(Gain) loss on disposition of assets | $ (1.5) | $ 8.8 | $ (1.9) |
Significant Accounting Polici_9
Significant Accounting Policies - Interest Rate Swaps (Details) $ in Millions | Dec. 31, 2021USD ($) |
Derivatives | |
Interest Rate Swaps Terminations | $ 850 |
Cash Payments Associated with Interest Rate Swaps Terminations | 12.7 |
December 2021 | |
Derivatives | |
Interest Rate Swaps Terminations | 150 |
Cash Payments Associated with Interest Rate Swaps Terminations | 0 |
September 2021 | |
Derivatives | |
Interest Rate Swaps Terminations | 100 |
Cash Payments Associated with Interest Rate Swaps Terminations | 0.5 |
May 2021 | |
Derivatives | |
Interest Rate Swaps Terminations | 100 |
Cash Payments Associated with Interest Rate Swaps Terminations | 1.3 |
December 2020 | |
Derivatives | |
Interest Rate Swaps Terminations | 500 |
Cash Payments Associated with Interest Rate Swaps Terminations | $ 10.9 |
Significant Accounting Polic_10
Significant Accounting Policies - Schedule of Revenue Concentration Risk (Details) - Customer Concentration Risk - Sales Revenue, Net | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Devon | |||
Concentration Risk [Line Items] | |||
Concentration risk | 6.70% | 14.40% | 10.50% |
Dow Hydrocarbons and Resources LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk | 14.50% | 13.20% | 10.00% |
Marathon Petroleum Corporation | |||
Concentration Risk [Line Items] | |||
Concentration risk | 13.40% | 12.20% | 13.80% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 0 | |||
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset, useful life | 10 years | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset, useful life | 20 years | |||
Weighted Average | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset, weighted average remaining amortization period | 14 years 10 months 24 days | |||
Corporate | Louisiana | EnLink Midstream Partners, LP | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment loss recognized | $ 186,500,000 | |||
Operating Segments | Permian | EnLink Midstream Partners, LP | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment loss recognized | $ 184,600,000 | |||
Operating Segments | North Texas | EnLink Midstream Partners, LP | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment loss recognized | $ 125,700,000 | |||
Operating Segments | Oklahoma | EnLink Midstream Partners, LP | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment loss recognized | $ 813,400,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Carrying Value of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Accumulated amortization, beginning of period | $ (668.8) | ||
Accumulated amortization, end of period | (795.1) | $ (668.8) | |
EnLink Midstream Partners, LP | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Customer relationships, end of period, net | 1,049.7 | ||
Customer Relationships | EnLink Midstream Partners, LP | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Customer relationships, beginning of period, gross | 1,794.2 | 1,795.8 | $ 1,795.8 |
Accumulated amortization, beginning of period | (668.8) | (545.9) | (422.2) |
Customer relationships, beginning of period, net | 1,125.4 | 1,249.9 | 1,373.6 |
Customer relationships obtained from acquisition of business | 50.6 | ||
Amortization expense | (126.3) | (123.5) | (123.7) |
Retirements, gross carrying amount | (1.6) | ||
Retirements, accumulated amortization | 0.6 | ||
Retirements, net carrying amount | (1) | ||
Customer relationships, end of period, gross | 1,844.8 | 1,794.2 | 1,795.8 |
Accumulated amortization, end of period | (795.1) | (668.8) | (545.9) |
Customer relationships, end of period, net | $ 1,049.7 | $ 1,125.4 | $ 1,249.9 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense (Details) - EnLink Midstream Partners, LP $ in Millions | Dec. 31, 2021USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2022 | $ 127.6 |
2023 | 127.6 |
2024 | 127.6 |
2025 | 110.3 |
2026 | 106.4 |
Thereafter | 450.2 |
Total | $ 1,049.7 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Related Party Transaction [Line Items] | ||||
Cost of sales | [1] | $ 5,189,900,000 | $ 2,388,500,000 | $ 4,392,500,000 |
Accounts payable, related parties | 1,600,000 | 1,000,000 | ||
Cedar Cove Joint Venture | ||||
Related Party Transaction [Line Items] | ||||
Accounts payable, related parties | 1,600,000 | 1,000,000 | ||
Cedar Cove Joint Venture | ||||
Related Party Transaction [Line Items] | ||||
Cost of sales | 17,900,000 | 8,700,000 | 21,700,000 | |
GIP | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses, related party | $ 500,000 | $ 200,000 | $ 0 | |
[1] | Includes related party cost of sales of $17.9 million, $8.7 million, and $21.7 million for the years ended December 31, 2021, 2020, and 2019, respectively. |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Lease liability | $ 85.2 | ||
Right-of-use assets | 60.1 | $ 59.8 | |
Impairments | 0.2 | 6.8 | $ 0 |
Office Lease | |||
Lessee, Lease, Description [Line Items] | |||
Lease liability | 51.8 | 57.6 | |
Right-of-use assets | 27.9 | 32.4 | |
Compression and Other Field Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease liability | 17.7 | 14.6 | |
Right-of-use assets | 19.5 | 14.6 | |
Land | |||
Lessee, Lease, Description [Line Items] | |||
Lease liability | 15.6 | 15.1 | |
Right-of-use assets | 12.6 | 12.5 | |
Office Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease liability | 0.1 | 0.3 | |
Right-of-use assets | $ 0.1 | $ 0.3 | |
Minimum | Compression and Other Field Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 1 year | ||
Maximum | Compression and Other Field Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 3 years |
Leases - Leases Balances on Con
Leases - Leases Balances on Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating leases: | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Other assets, net | $ 60.1 | $ 59.8 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Other current liabilities | $ 18.1 | $ 16.3 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Other long-term liabilities | $ 67.1 | $ 71.3 |
Other lease information | ||
Weighted-average remaining lease term—Operating leases | 10 years 3 months 18 days | 11 years 1 month 6 days |
Weighted-average discount rate—Operating leases | 4.90% | 5.10% |
Leases - Components of Total Le
Leases - Components of Total Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease expense: | |||
Amortization of right-of-use asset | $ 0 | $ 0 | $ 5.2 |
Interest on lease liability | 0 | 0 | 0.1 |
Operating lease expense: | |||
Long-term operating lease expense | 21.7 | 23.1 | 28.7 |
Short-term lease expense | 17.5 | 22.1 | 32 |
Variable lease expense | 15.6 | 11.8 | 7.7 |
Impairments | 0.2 | 6.8 | 0 |
Total lease expense | $ 55 | $ 63.8 | $ 68.4 |
Leases - Maturity (Details)
Leases - Maturity (Details) $ in Millions | Dec. 31, 2021USD ($) |
Undiscounted operating lease liability | |
Total | $ 115.6 |
2022 | 21.1 |
2023 | 15.3 |
2024 | 10.1 |
2025 | 9.8 |
2026 | 8.9 |
Thereafter | 50.4 |
Reduction due to present value | |
Total | (30.4) |
2022 | (3.7) |
2023 | (3.2) |
2024 | (2.8) |
2025 | (2.4) |
2026 | (2) |
Thereafter | (16.3) |
Operating Lease, Liability [Abstract] | |
Total | 85.2 |
2022 | 17.4 |
2023 | 12.1 |
2024 | 7.3 |
2025 | 7.4 |
2026 | 6.9 |
Thereafter | $ 34.1 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument | ||
Subtotal | $ 4,397.3 | $ 4,632.3 |
Premium (discount) | (5.8) | (5.9) |
Long-term debt | 4,391.5 | 4,626.4 |
Less: debt issuance cost | (27.8) | (32.6) |
Less: Current maturities of long-term debt | 0 | (349.8) |
Long-term debt, net of unamortized issuance cost | 4,363.7 | 4,244 |
Debt issuance cost accumulated amortization | 18.4 | 14.1 |
Term Loan due 2021 | ||
Debt Instrument | ||
Subtotal | 0 | 350 |
Premium (discount) | 0 | 0 |
Long-term debt | 0 | $ 350 |
Effective interest rate | 1.70% | |
Credit Facility Due 2024 | ||
Debt Instrument | ||
Subtotal | 15 | $ 0 |
Premium (discount) | 0 | 0 |
Long-term debt | 15 | $ 0 |
Effective interest rate | 3.90% | |
AR Facility due 2024 | ||
Debt Instrument | ||
Subtotal | 350 | $ 250 |
Premium (discount) | 0 | 0 |
Long-term debt | $ 350 | $ 250 |
Effective interest rate | 1.20% | 2.00% |
4.4% Senior Notes due 2024 | ||
Debt Instrument | ||
Stated interest rate | 4.40% | |
Subtotal | $ 521.8 | $ 521.8 |
Premium (discount) | 0.7 | 1.1 |
Long-term debt | $ 522.5 | 522.9 |
4.15% Senior Notes due 2025 | ||
Debt Instrument | ||
Stated interest rate | 4.15% | |
Subtotal | $ 720.8 | 720.8 |
Premium (discount) | (0.4) | (0.6) |
Long-term debt | $ 720.4 | 720.2 |
4.85 Senior Unsecured Notes Due 2026 | ||
Debt Instrument | ||
Stated interest rate | 4.85% | |
Subtotal | $ 491 | 491 |
Premium (discount) | (0.3) | (0.4) |
Long-term debt | $ 490.7 | 490.6 |
5.625% Senior unsecured notes due 2028 | ||
Debt Instrument | ||
Stated interest rate | 5.625% | |
Subtotal | $ 500 | 500 |
Premium (discount) | 0 | 0 |
Long-term debt | $ 500 | 500 |
5.375% Senior unsecured notes due 2029 | ||
Debt Instrument | ||
Stated interest rate | 5.375% | |
Subtotal | $ 498.7 | 498.7 |
Premium (discount) | 0 | 0 |
Long-term debt | $ 498.7 | 498.7 |
5.6% Senior Notes due 2044 | ||
Debt Instrument | ||
Stated interest rate | 5.60% | |
Subtotal | $ 350 | 350 |
Premium (discount) | (0.2) | (0.2) |
Long-term debt | $ 349.8 | 349.8 |
5.05 Senior Notes due 2045 | ||
Debt Instrument | ||
Stated interest rate | 5.05% | |
Subtotal | $ 450 | 450 |
Premium (discount) | (5.5) | (5.7) |
Long-term debt | $ 444.5 | 444.3 |
Senior Unsecured Notes, 5.45%, Due 2047 | ||
Debt Instrument | ||
Stated interest rate | 5.45% | |
Subtotal | $ 500 | 500 |
Premium (discount) | (0.1) | (0.1) |
Long-term debt | $ 499.9 | $ 499.9 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2022 | $ 0 | |
2023 | 0 | |
2024 | 886.8 | |
2025 | 720.8 | |
2026 | 491 | |
Thereafter | 2,298.7 | |
Subtotal | 4,397.3 | $ 4,632.3 |
Less: net discount | (5.8) | (5.9) |
Less: debt issuance cost | (27.8) | (32.6) |
Long-term debt | $ 4,363.7 | $ 4,244 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Dec. 10, 2021USD ($) | Sep. 24, 2021USD ($) | Apr. 30, 2021USD ($) | Feb. 26, 2021USD ($) | Dec. 14, 2020USD ($) | Oct. 21, 2020USD ($) | Dec. 11, 2018USD ($) | Sep. 30, 2021USD ($) | May 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument | |||||||||||||
Repayments of debt | $ 36,000,000 | ||||||||||||
Increase in accounts receivable due to consolidation | 773,600,000 | ||||||||||||
Proceeds from issuance of long-term debt | $ 494,700,000 | $ 1,234,500,000 | $ 1,650,000,000 | $ 3,310,000,000 | |||||||||
Repurchase price as a percent of principal | 101.00% | ||||||||||||
Amarillo Rattler, LLC | |||||||||||||
Debt Instrument | |||||||||||||
Payments to acquire gathering and processing system | $ 50,000,000 | ||||||||||||
Line of Credit | Asset-backed Securities | |||||||||||||
Debt Instrument | |||||||||||||
Maximum borrowing capacity | $ 350,000,000 | $ 300,000,000 | $ 250,000,000 | $ 350,000,000 | |||||||||
Drawn fee percentage | 1.10% | 1.25% | 1.625% | ||||||||||
Line of credit facility, increase in period | $ 50,000,000 | $ 50,000,000 | |||||||||||
LIBOR | Line of Credit | Minimum | Asset-backed Securities | |||||||||||||
Debt Instrument | |||||||||||||
Variable rate | 0.00% | 0.375% | 1.10% | ||||||||||
Revolviing Credit Facility Unsecured | |||||||||||||
Debt Instrument | |||||||||||||
Additional amount available (not to exceed) | $ 1,750,000,000 | ||||||||||||
ENLK Credit Facility | |||||||||||||
Debt Instrument | |||||||||||||
Fair value of amount outstanding | $ 15,000,000 | ||||||||||||
ENLK Credit Facility | Letter of Credit | ENLC | |||||||||||||
Debt Instrument | |||||||||||||
Fair value of amount outstanding | $ 41,300,000 | ||||||||||||
ENLK Credit Facility | LIBOR | Maximum | EnLink Midstream Partners, LP | |||||||||||||
Debt Instrument | |||||||||||||
Variable rate | 2.00% | ||||||||||||
ENLK Credit Facility | LIBOR | Minimum | EnLink Midstream Partners, LP | |||||||||||||
Debt Instrument | |||||||||||||
Variable rate | 1.125% | ||||||||||||
5.625% Senior unsecured notes due 2028 | |||||||||||||
Debt Instrument | |||||||||||||
Stated interest rate | 5.625% | ||||||||||||
Unsecured Debt | |||||||||||||
Debt Instrument | |||||||||||||
Percentage price of debt issued | 100.00% | ||||||||||||
Unsecured Debt | Revolviing Credit Facility Unsecured | |||||||||||||
Debt Instrument | |||||||||||||
Consolidated EBITDA to consolidated interest charges, ratio | 2.5 | ||||||||||||
Consolidated indebtedness to consolidated EBITDA, ratio | 5 | ||||||||||||
Unsecured Debt | Revolviing Credit Facility Unsecured | Federal Funds | |||||||||||||
Debt Instrument | |||||||||||||
Variable rate | 0.50% | ||||||||||||
Unsecured Debt | Revolviing Credit Facility Unsecured | Eurodollar | |||||||||||||
Debt Instrument | |||||||||||||
Variable rate | 1.00% | ||||||||||||
Unsecured Debt | Revolviing Credit Facility Unsecured | Eurodollar | Minimum | |||||||||||||
Debt Instrument | |||||||||||||
Variable rate | 0.125% | ||||||||||||
Unsecured Debt | ENLK Credit Facility | |||||||||||||
Debt Instrument | |||||||||||||
Consolidated indebtedness to consolidated EBITDA, during an acquisition period, ratio | 5.5 | ||||||||||||
Unsecured Debt | ENLK Credit Facility | Maximum | |||||||||||||
Debt Instrument | |||||||||||||
Consolidated indebtedness to consolidated EBITDA, during an acquisition period, ratio | 5.5 | ||||||||||||
Unsecured Debt | ENLK Credit Facility | Minimum | |||||||||||||
Debt Instrument | |||||||||||||
Conditional acquisition purchase price (or more) | $ 50,000,000 | ||||||||||||
Unsecured Debt | ENLK Credit Facility | Eurodollar | |||||||||||||
Debt Instrument | |||||||||||||
Variable rate | 1.00% | ||||||||||||
Unsecured Debt | Term Loan due 2021 | |||||||||||||
Debt Instrument | |||||||||||||
Repayments of debt | $ 150,000,000 | $ 100,000,000 | $ 100,000,000 | $ 500,000,000 | |||||||||
Unsecured Debt | 5.625% Senior unsecured notes due 2028 | |||||||||||||
Debt Instrument | |||||||||||||
Stated interest rate | 5.625% | ||||||||||||
Percentage price of debt issued | 100.00% | ||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||
Letter of Credit | Revolviing Credit Facility Unsecured | |||||||||||||
Debt Instrument | |||||||||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||||||||
Percentage of letter of credits guaranteed | 105.00% |
Long-Term Debt - Summary of Red
Long-Term Debt - Summary of Redemption Provision Terms (Details) - EnLink Midstream Partners, LP - Treasury Rate | 12 Months Ended |
Dec. 31, 2021 | |
4.4% Senior Notes due 2024 | |
Debt Instrument | |
Redemption premium, percentage | 25.00% |
4.15% Senior Notes due 2025 | |
Debt Instrument | |
Redemption premium, percentage | 30.00% |
4.85 Senior Unsecured Notes Due 2026 | |
Debt Instrument | |
Redemption premium, percentage | 50.00% |
5.625% Senior unsecured notes due 2028 | |
Debt Instrument | |
Redemption premium, percentage | 50.00% |
5.375% Senior unsecured notes due 2029 | |
Debt Instrument | |
Redemption premium, percentage | 50.00% |
5.6% Senior Notes due 2044 | |
Debt Instrument | |
Redemption premium, percentage | 30.00% |
5.05 Senior Notes due 2045 | |
Debt Instrument | |
Redemption premium, percentage | 30.00% |
Senior Unsecured Notes, 5.45%, Due 2047 | |
Debt Instrument | |
Redemption premium, percentage | 40.00% |
Long-Term Debt - Senior Unsecur
Long-Term Debt - Senior Unsecured Notes Repurchases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Debt Disclosure [Abstract] | |
Debt repurchased | $ 67.7 |
Aggregate payments | (36) |
Net discount on repurchased debt | (0.3) |
Accrued interest on repurchased debt | 0.6 |
Gain on extinguishment of debt | $ 32 |
Income Taxes - Components of Th
Income Taxes - Components of The Provision For Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expense | $ (0.8) | $ (1.1) | $ 0 |
Deferred tax expense | (24.6) | (142.1) | (6.9) |
Total income tax expense | $ (25.4) | $ (143.2) | $ (6.9) |
Income Taxes - Book Income Reco
Income Taxes - Book Income Reconciliation To Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Expected income tax benefit (expense) based on federal statutory tax rate | $ (10) | $ 58.5 | $ 233.6 |
State income tax benefit (expense), net of federal benefit | (1.4) | 6.5 | 27 |
Unit-based compensation | (3.1) | (6) | (2.2) |
Non-deductible expense related to impairments | 0 | (43.4) | (264.5) |
Statutory rate changes | (10.2) | 0 | 0 |
Change in valuation allowance | (1.7) | 153.3 | 0 |
Other | (2.4) | (5.5) | (0.8) |
Total income tax expense | (25.4) | $ (143.2) | $ (6.9) |
Oklahoma | |||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Deferred state income tax expense (benefit) | 7.6 | ||
Louisiana | |||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Deferred state income tax expense (benefit) | $ 2.6 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred income tax assets: | ||
Federal net operating loss carryforward | $ 573.6 | $ 488.3 |
State net operating loss carryforward | 59.6 | 61 |
Total deferred tax assets, gross | 633.2 | 549.3 |
Valuation allowance | (151.6) | (153.3) |
Total deferred tax assets, net of valuation allowance | 481.6 | 396 |
Deferred tax liabilities: | ||
Property, plant, equipment, and intangible assets | (619.1) | (504.6) |
Total deferred tax liabilities | (619.1) | (504.6) |
Deferred tax liability, net | $ (137.5) | $ (108.6) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
Issuance of common units for ENLK public common units related to the Merger | $ 399,000,000 | $ 399,000,000 | |
Valuation allowance | 151,600,000 | $ 153,300,000 | |
Change in valuation allowance | (1,700,000) | 153,300,000 | $ 0 |
Unrecognized tax benefits | 0 | $ 0 | |
Domestic Tax Authority | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 2,700,000,000 | ||
Deferred tax assets, operating loss carryforwards, domestic | 573,600,000 | ||
Operating loss carryforwards, amount carried indefinitely | 2,500,000,000 | ||
Operating loss carryforwards, amount carried for a maximum of twenty years | 200,000,000 | ||
State and Local Jurisdiction | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 1,300,000,000 | ||
Deferred tax assets, operating loss carryforwards, domestic | $ 59,600,000 |
Certain Provisions of the Par_3
Certain Provisions of the Partnership Agreement - Narrative (Details) $ / shares in Units, $ in Millions | Feb. 11, 2022USD ($) | Jan. 25, 2019 | Jan. 31, 2022USD ($)shares | Dec. 31, 2021USD ($) | Sep. 30, 2017$ / sharesshares | Jan. 31, 2016$ / sharesshares | Dec. 31, 2021USD ($)shares | Sep. 30, 2021USD ($)shares | Jun. 30, 2021USD ($)shares | Mar. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Sep. 30, 2020USD ($)shares | Jun. 30, 2020USD ($)shares | Mar. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Sep. 30, 2019USD ($)shares | Jun. 30, 2019USD ($)shares | Mar. 31, 2019USD ($)shares | Sep. 30, 2018$ / shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Partnership agreement | ||||||||||||||||||||||
Redemption of Series B Preferred Units | $ 50 | $ 0 | $ 0 | |||||||||||||||||||
Common units conversion ratio | 1.15 | |||||||||||||||||||||
EnLink Midstream Partners, LP | ||||||||||||||||||||||
Partnership agreement | ||||||||||||||||||||||
Common units conversion ratio | 1.15 | |||||||||||||||||||||
Series B Preferred Units | ||||||||||||||||||||||
Partnership agreement | ||||||||||||||||||||||
Stock redeemed during period (in shares) | shares | 3,300,330 | |||||||||||||||||||||
Redemption of Series B Preferred Units | $ 50 | |||||||||||||||||||||
Redemption price of preferred stock, percent | 101.00% | |||||||||||||||||||||
Series B Preferred Units | Subsequent Event | ||||||||||||||||||||||
Partnership agreement | ||||||||||||||||||||||
Stock redeemed during period (in shares) | shares | 3,333,334 | |||||||||||||||||||||
Redemption of Series B Preferred Units | $ 50.5 | |||||||||||||||||||||
Redemption price of preferred stock, percent | 101.00% | |||||||||||||||||||||
Series B Preferred Units | EnLink Midstream Partners, LP | ||||||||||||||||||||||
Partnership agreement | ||||||||||||||||||||||
Partners' capital account, units, sold in private placement (in shares) | shares | 50,000,000 | |||||||||||||||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 15 | |||||||||||||||||||||
Annual rate on issue price | 0.25% | |||||||||||||||||||||
Annual rate on issue price payable in cash | 28.125% | |||||||||||||||||||||
Series C Preferred Units | EnLink Midstream Partners, LP | ||||||||||||||||||||||
Partnership agreement | ||||||||||||||||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 1,000 | |||||||||||||||||||||
Partners' capital account, units, sold in public offering (in shares) | shares | 400,000 | |||||||||||||||||||||
Partners capital account, redemption price (in dollars per share) | $ / shares | $ 1,000 | |||||||||||||||||||||
Partners' capital account, redemption period following review or appeal | 120 days | |||||||||||||||||||||
Partners' capital account, redemption price following review or appeal | $ / shares | $ 1,020 | |||||||||||||||||||||
Partners' capital account, dividend rate, percentage | 6.00% | |||||||||||||||||||||
Distributions to preferred unitholders | $ 24 | $ 24 | $ 24 | |||||||||||||||||||
Series C Preferred Units | EnLink Midstream Partners, LP | LIBOR | ||||||||||||||||||||||
Partnership agreement | ||||||||||||||||||||||
Partners' capital account, distributions, variable floating rate percentage | 4.11% | |||||||||||||||||||||
Limited Partner | Series B Preferred Units | ||||||||||||||||||||||
Partnership agreement | ||||||||||||||||||||||
Partners' capital, conversion obligation period of consecutive trading days | 30 days | |||||||||||||||||||||
Partners' capital, average trading price, number of trading days | 2 days | |||||||||||||||||||||
Percent of issue price | 150.00% | |||||||||||||||||||||
Preferred units distributions (in shares) | shares | 0 | 151,626 | 151,248 | 150,871 | 150,494 | 150,119 | 149,745 | 149,371 | 148,999 | 148,627 | 148,257 | 147,887 | ||||||||||
Proceeds from issuance of ENLK Preferred Units | $ 19.2 | $ 17.1 | $ 17 | $ 17 | $ 16.9 | $ 16.9 | $ 16.8 | $ 16.8 | $ 16.8 | $ 17.1 | $ 17.1 | $ 16.7 | ||||||||||
Dividends, preferred stock | $ 0.9 | |||||||||||||||||||||
Limited Partner | Series B Preferred Units | Subsequent Event | ||||||||||||||||||||||
Partnership agreement | ||||||||||||||||||||||
Dividends, preferred stock | $ 17.3 | $ 1 |
Members' Equity (Details)
Members' Equity (Details) - USD ($) | Feb. 22, 2019 | Jan. 25, 2019 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2020 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Stock repurchase program, authorized amount | $ 100,000,000 | |||||||||||||||||
Common units repurchased (in shares) | 6,091,001 | 383,614 | ||||||||||||||||
Payments for repurchase of common stock | $ 40,100,000 | $ 1,200,000 | $ 0 | |||||||||||||||
Payments for repurchase of common stock (in dollars per share) | $ 6.59 | $ 3.02 | ||||||||||||||||
Sale of stock, maximum amount allowed to be sold through agent | $ 400,000,000 | |||||||||||||||||
Distributed earnings allocated to: | ||||||||||||||||||
Total distributed earnings | $ 197,000,000 | $ 186,600,000 | 484,700,000 | |||||||||||||||
Undistributed loss allocated to: | ||||||||||||||||||
Total undistributed loss, basic | (174,600,000) | (608,100,000) | (1,604,000,000) | |||||||||||||||
Total undistributed loss, diluted | (174,600,000) | (608,100,000) | (1,604,000,000) | |||||||||||||||
Net income (loss) attributable to ENLC allocated to: | ||||||||||||||||||
Total net income (loss), basic | 22,400,000 | (421,500,000) | (1,119,300,000) | |||||||||||||||
Total net income (loss), diluted | $ 22,400,000 | $ (421,500,000) | $ (1,119,300,000) | |||||||||||||||
Basic and diluted net income (loss) per unit attributable to ENLC: | ||||||||||||||||||
Basic (in dollars per share) | $ 0.05 | $ (0.86) | $ (2.41) | |||||||||||||||
Diluted (in dollars per share) | $ 0.05 | $ (0.86) | $ (2.41) | |||||||||||||||
Weighted average basic common units outstanding (in units) | 488,800,000 | 489,300,000 | 463,900,000 | |||||||||||||||
Dilutive effect of non-vested restricted units (in units) | 5,500,000 | 0 | 0 | |||||||||||||||
Total weighted average diluted common units outstanding (in units) | 494,300,000 | 489,300,000 | 463,900,000 | |||||||||||||||
Distribution declared/unit (in dollars per share) | $ 0.11250 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.1875 | $ 0.283 | $ 0.283 | $ 0.279 | ||||||
Merger | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 304,822,035 | |||||||||||||||||
Unvested restricted units | ||||||||||||||||||
Distributed earnings allocated to: | ||||||||||||||||||
Total distributed earnings | $ 4,500,000 | $ 3,100,000 | $ 5,700,000 | |||||||||||||||
Undistributed loss allocated to: | ||||||||||||||||||
Total undistributed loss, basic | (4,000,000) | (9,700,000) | (19,200,000) | |||||||||||||||
Total undistributed loss, diluted | (4,000,000) | (9,700,000) | (19,200,000) | |||||||||||||||
Net income (loss) attributable to ENLC allocated to: | ||||||||||||||||||
Total net income (loss), basic | 500,000 | (6,600,000) | (13,500,000) | |||||||||||||||
Total net income (loss), diluted | 500,000 | (6,600,000) | (13,500,000) | |||||||||||||||
Common units | ||||||||||||||||||
Distributed earnings allocated to: | ||||||||||||||||||
Total distributed earnings | 192,500,000 | 183,500,000 | 479,000,000 | |||||||||||||||
Undistributed loss allocated to: | ||||||||||||||||||
Total undistributed loss, basic | (170,600,000) | (598,400,000) | (1,584,800,000) | |||||||||||||||
Total undistributed loss, diluted | (170,600,000) | (598,400,000) | (1,584,800,000) | |||||||||||||||
Net income (loss) attributable to ENLC allocated to: | ||||||||||||||||||
Total net income (loss), basic | 21,900,000 | (414,900,000) | (1,105,800,000) | |||||||||||||||
Total net income (loss), diluted | $ 21,900,000 | $ (414,900,000) | $ (1,105,800,000) |
Investment in Unconsolidated _3
Investment in Unconsolidated Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity method investments | |||
Distributions | $ 3.9 | $ 2.1 | $ 20.2 |
Equity in income (loss) | (11.5) | 0.6 | (16.8) |
Tangible asset impairment charges | 7.9 | ||
EnLink Midstream Partners, LP | |||
Equity method investments | |||
Total investment in unconsolidated affiliates | 26.2 | 41.6 | |
Cedar Cove JV | |||
Equity method investments | |||
Tangible asset impairment charges | $ 31.4 | 31.4 | |
Gulf Coast Fractionators | |||
Equity method investments | |||
Ownership interest | 38.75% | ||
Distributions | $ 3.5 | 1.6 | 19.2 |
Equity in income (loss) | (9.1) | 3 | 16.5 |
Gulf Coast Fractionators | EnLink Midstream Partners, LP | |||
Equity method investments | |||
Total investment in unconsolidated affiliates | $ 28 | 40.6 | |
Cedar Cove JV | |||
Equity method investments | |||
Ownership interest | 30.00% | ||
Distributions | $ 0.4 | 0.5 | 1 |
Equity in income (loss) | (2.4) | (2.4) | $ (33.3) |
Cedar Cove JV | EnLink Midstream Partners, LP | |||
Equity method investments | |||
Total investment in unconsolidated affiliates | $ (1.8) | $ 1 |
Employee Incentive Plans - Amou
Employee Incentive Plans - Amounts Recognized in Consolidated Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allocation | |||
Compensation expense | $ 25.3 | $ 28.4 | $ 39.4 |
Amount of related income tax benefit recognized in net income | 5.9 | 6.7 | 9.1 |
Unit-based compensation, related income tax expense (benefit) | 3.1 | 6 | 2.2 |
Unvested restricted units | |||
Allocation | |||
Unit-based compensation, related income tax expense (benefit) | 3.1 | 6 | 2.2 |
Non-Controlling Interest | |||
Allocation | |||
Compensation expense | 0 | 0 | 0.5 |
Cost of unit-based compensation charged to general and administrative expense | |||
Allocation | |||
Compensation expense | 18.7 | 21.3 | 32.7 |
Cost of unit-based compensation charged to operating expense | |||
Allocation | |||
Compensation expense | $ 6.6 | $ 7.1 | $ 6.7 |
Employee Incentive Plans - Rest
Employee Incentive Plans - Restricted and Performance Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2021 | Jul. 31, 2020 | Mar. 31, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2021 | |
Restricted incentive units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||||
Unrecognized compensation cost related to non-vested restricted incentive units | $ 13 | ||||||||||
Unrecognized compensation costs, weighted average period for recognition | 1 year 7 months 6 days | ||||||||||
Vesting period | 3 years | ||||||||||
Performance Shares | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||||
Non-vested, beginning of period (in shares) | 2,351,241 | 2,351,241 | |||||||||
Granted (in shares) | 1,388,139 | ||||||||||
Vested (in shares) | (164,553) | ||||||||||
Non-vested, end of period (in shares) | 3,574,827 | 2,351,241 | |||||||||
Aggregate intrinsic value, end of period (in millions) | $ 24.6 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||||
Non-vested, beginning of period (in dollars per share) | $ 8.82 | $ 8.82 | |||||||||
Granted (in dollars per share) | 4.70 | ||||||||||
Vested (in dollars per share) | 26.73 | ||||||||||
Non-vested, end of period (in dollars per share) | $ 6.40 | $ 8.82 | |||||||||
Fair value of units vested | $ 4.4 | $ 5.5 | $ 7.9 | ||||||||
Aggregate intrinsic value of units vested | 0.6 | $ 0.9 | 3.4 | ||||||||
Unrecognized compensation cost related to non-vested restricted incentive units | $ 10.4 | ||||||||||
Unrecognized compensation costs, weighted average period for recognition | 1 year 7 months 6 days | ||||||||||
Vesting period | 3 years | ||||||||||
ENLC | Restricted incentive units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||||
Non-vested, beginning of period (in shares) | 5,350,086 | 5,350,086 | |||||||||
Granted (in shares) | 3,937,301 | ||||||||||
Vested (in shares) | (1,268,801) | ||||||||||
Forfeited (in shares) | (511,115) | ||||||||||
Non-vested, end of period (in shares) | 7,507,471 | 5,350,086 | |||||||||
Aggregate intrinsic value, end of period (in millions) | $ 51.7 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||||
Non-vested, beginning of period (in dollars per share) | $ 8.45 | $ 8.45 | |||||||||
Granted (in dollars per share) | 3.86 | ||||||||||
Vested (in dollars per share) | 12.85 | ||||||||||
Forfeited (in dollars per share) | 6.10 | ||||||||||
Non-vested, end of period (in dollars per share) | $ 5.46 | $ 8.45 | |||||||||
Fair value of units vested | $ 16.3 | $ 31.5 | 22.8 | ||||||||
Units withheld for payroll taxes (in shares) | 382,343 | ||||||||||
Aggregate intrinsic value of units vested | $ 5.6 | $ 12.1 | $ 17.3 | ||||||||
ENLC | Performance Shares | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||||
Units withheld for payroll taxes (in shares) | 63,901 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||||||||
Grant-date fair value (in dollars per share) | 4.70 | $ 1.13 | $ 7.69 | $ 7.29 | $ 9.92 | $ 13.10 | $ 2.33 | ||||
Beginning TSR price (in dollars per share) | $ 3.71 | $ 2.52 | $ 1.25 | $ 6.13 | $ 7.42 | $ 9.84 | $ 10.92 | ||||
Risk-free interest rate | 0.17% | 0.17% | 0.42% | 1.62% | 1.44% | 1.72% | 2.42% | ||||
Volatility factor | 71.00% | 67.00% | 51.00% | 37.00% | 35.00% | 33.50% | 33.86% | ||||
ENLC | Performance Shares | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||||
Percent of units vesting | 0.00% | ||||||||||
ENLC | Performance Shares | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||||
Percent of units vesting | 200.00% |
Employee Incentive Plans - Summ
Employee Incentive Plans - Summary of Tranche Vesting Levels (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
Below Threshold | TSR Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of the Tranche CF Units | 0.00% | ||
Below Threshold | Cash Flow Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ENLC’s Achieved FCFAD | $ 205 | ||
ENLC’s Achieved Cash Flow per Unit (in dollars per share) | $ 1.345 | $ 1.43 | |
Vesting percentage of the Tranche CF Units | 0.00% | 0.00% | 0.00% |
Threshold | TSR Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of the Tranche CF Units | 50.00% | ||
Threshold | Cash Flow Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ENLC’s Achieved FCFAD | $ 205 | ||
ENLC’s Achieved Cash Flow per Unit (in dollars per share) | $ 1.345 | $ 1.43 | |
Vesting percentage of the Tranche CF Units | 50.00% | 50.00% | 50.00% |
Target | TSR Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of the Tranche CF Units | 100.00% | ||
Target | Cash Flow Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ENLC’s Achieved FCFAD | $ 256 | ||
ENLC’s Achieved Cash Flow per Unit (in dollars per share) | $ 1.494 | $ 1.55 | |
Vesting percentage of the Tranche CF Units | 100.00% | 100.00% | 100.00% |
Maximum | TSR Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of the Tranche CF Units | 200.00% | ||
Maximum | Cash Flow Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ENLC’s Achieved FCFAD | $ 300 | ||
ENLC’s Achieved Cash Flow per Unit (in dollars per share) | $ 1.643 | $ 1.72 | |
Vesting percentage of the Tranche CF Units | 200.00% | 200.00% | 200.00% |
Employee Incentive Plans - Bene
Employee Incentive Plans - Benefit Plan (Details) - EnLink Midstream Partners, LP - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent | 100.00% | ||
Employer matching contribution, percent of employees' gross pay | 6.00% | ||
Employer benefit plan contributions | $ 7 | $ 7.2 | $ 9.4 |
Derivatives - Interest Rate Swa
Derivatives - Interest Rate Swaps (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | |||||
Derivatives | ||||||||
Derivative, notional amount | $ 850,000,000 | |||||||
Derivative, fixed interest rate | 2.28% | |||||||
Interest Rate Swaps Terminations | $ 850,000,000 | |||||||
Cash Payments Associated with Interest Rate Swaps Terminations | 12,700,000 | |||||||
Change in fair value of derivatives | (12,400,000) | $ (10,500,000) | $ (100,000) | |||||
Tax benefit (expense) | (4,300,000) | 1,300,000 | 3,400,000 | |||||
Unrealized gain (loss) on designated cash flow hedge | [1] | 13,900,000 | [2] | (4,300,000) | [3] | (9,000,000) | [4] | |
Cash flow hedge gain (loss) amortized into interest rate expense | 18,300,000 | 14,500,000 | 400,000 | |||||
Cash flow hedge gain (loss) amortized into interest rate expense in the next 12 months | 100,000 | |||||||
Fair value of derivative liabilities—current | (34,900,000) | (37,100,000) | ||||||
December 2021 | ||||||||
Derivatives | ||||||||
Interest Rate Swaps Terminations | 150,000,000 | |||||||
Cash Payments Associated with Interest Rate Swaps Terminations | 0 | |||||||
September 2021 | ||||||||
Derivatives | ||||||||
Interest Rate Swaps Terminations | 100,000,000 | |||||||
Cash Payments Associated with Interest Rate Swaps Terminations | 500,000 | |||||||
May 2021 | ||||||||
Derivatives | ||||||||
Interest Rate Swaps Terminations | 100,000,000 | |||||||
Cash Payments Associated with Interest Rate Swaps Terminations | 1,300,000 | |||||||
December 2020 | ||||||||
Derivatives | ||||||||
Interest Rate Swaps Terminations | 500,000,000 | |||||||
Cash Payments Associated with Interest Rate Swaps Terminations | 10,900,000 | |||||||
Interest rate swaps | ||||||||
Derivatives | ||||||||
Change in fair value of derivatives | 18,200,000 | (5,600,000) | $ (12,400,000) | |||||
Fair value of derivative liabilities—current | $ 0 | $ (7,600,000) | ||||||
[1] | Includes a tax expense of $4.3 million for the year ended December 31, 2021 and a tax benefit of $1.3 million and $3.4 million for the years ended December 31, 2020 and 2019, respectively. | |||||||
[2] | Includes a tax expense of $4.3 million. | |||||||
[3] | Includes a tax benefit of $1.3 million. | |||||||
[4] | Includes a tax benefit of $3.4 million. |
Derivatives - Components of Gai
Derivatives - Components of Gain (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives | |||
Change in fair value of derivatives | $ (12.4) | $ (10.5) | $ (0.1) |
Realized gain (loss) on derivatives | (146.7) | (11.5) | 14.5 |
Gain (loss) on derivative activity | (10.3) | (14.8) | (2.5) |
EnLink Midstream Partners, LP | Commodity Swaps | |||
Derivatives | |||
Change in fair value of derivatives | (12.4) | (10.5) | (0.1) |
Realized gain (loss) on derivatives | (146.7) | (11.5) | 14.5 |
Gain (loss) on derivative activity | $ (159.1) | $ (22) | $ 14.4 |
Derivatives - Fair Value of Ass
Derivatives - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives | ||
Fair value of derivative assets—current | $ 22.4 | $ 25 |
Fair value of derivative assets—long-term | 0.2 | 4.9 |
Fair value of derivative liabilities—current | (34.9) | (37.1) |
Fair value of derivative liabilities—long-term | (2.2) | (2.5) |
Commodity Swaps | ||
Derivatives | ||
Net fair value of commodity swaps | (14.5) | |
EnLink Midstream Partners, LP | Commodity Swaps | ||
Derivatives | ||
Fair value of derivative assets—current | 22.4 | 25 |
Fair value of derivative assets—long-term | 0.2 | 4.9 |
Fair value of derivative liabilities—current | (34.9) | (29.5) |
Fair value of derivative liabilities—long-term | (2.2) | (2.5) |
Net fair value of commodity swaps | $ (14.5) | $ (2.1) |
Derivatives - Commodities (Deta
Derivatives - Commodities (Details) - Commodity Swaps gal in Millions, bbl in Millions, MMBTU in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)MMBTUgalbbl | Dec. 31, 2020USD ($) | |
Derivatives | ||
Net Fair Value | $ (14.5) | |
EnLink Midstream Partners, LP | ||
Derivatives | ||
Net Fair Value | (14.5) | $ (2.1) |
Maximum loss if counterparties fail to perform | 22.6 | |
Maximum potential exposure to credit losses net exposure | $ 0.8 | |
EnLink Midstream Partners, LP | NGL | Short | ||
Derivatives | ||
Notional amount (in gallons or MMbbls) | gal | 63 | |
Net Fair Value | $ (10.6) | |
EnLink Midstream Partners, LP | NGL | Long | ||
Derivatives | ||
Notional amount (in gallons or MMbbls) | gal | 0 | |
Net Fair Value | $ 0 | |
EnLink Midstream Partners, LP | Natural Gas | Short | ||
Derivatives | ||
Notional amount (in mmbtu) | MMBTU | 7.5 | |
Net Fair Value | $ 2.7 | |
EnLink Midstream Partners, LP | Natural Gas | Long | ||
Derivatives | ||
Notional amount (in mmbtu) | MMBTU | 13.2 | |
Net Fair Value | $ (7.8) | |
EnLink Midstream Partners, LP | Condensate | Short | ||
Derivatives | ||
Notional amount (in gallons or MMbbls) | bbl | 3.9 | |
Net Fair Value | $ (4.4) | |
EnLink Midstream Partners, LP | Crude and condensate | Long | ||
Derivatives | ||
Notional amount (in gallons or MMbbls) | bbl | 3.9 | |
Net Fair Value | $ 5.6 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Commodity Swaps | ||
Fair Value | ||
Net Fair Value | $ (14.5) | |
Level 2 | Interest rate swaps | Recurring | ||
Fair Value | ||
Net Fair Value | 0 | $ (7.6) |
Level 2 | Commodity Swaps | Recurring | ||
Fair Value | ||
Net Fair Value | $ (14.5) | $ (2.1) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) | Dec. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2020 |
Fair Value | |||
Installment payable | $ 10,000,000 | $ 0 | |
Debt issuance costs | 27,800,000 | 32,600,000 | |
Amarillo Rattler, LLC | |||
Fair Value | |||
Installment payable | 10,000,000 | $ 10,000,000 | |
Business combination, maximum earnout | $ 15,000,000 | ||
Carrying Value | |||
Fair Value | |||
Long-term debt | 4,363,700,000 | 4,593,800,000 | |
Installment payable | 10,000,000 | 0 | |
Contingent consideration | 6,900,000 | 0 | |
Fair Value | |||
Fair Value | |||
Long-term debt | 4,520,000,000 | 4,318,200,000 | |
Installment payable | 10,000,000 | 0 | |
Contingent consideration | $ 6,900,000 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Koch | EnLink Gas Marketing, LP | |
Commitments and Contingencies | |
Loss contingency, damages sought, value | $ 53.9 |
Segment Information - Financial
Segment Information - Financial Information and Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | $ 6,845 | $ 3,915.8 | $ 6,038.5 | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | [1] | (5,189.9) | (2,388.5) | (4,392.5) |
Realized gain (loss) on derivatives | (146.7) | (11.5) | 14.5 | |
Change in fair value of derivatives | (12.4) | (10.5) | (0.1) | |
Adjusted gross margin | 1,496 | 1,505.3 | 1,660.4 | |
Operating expenses | (362.9) | (373.8) | (467.1) | |
Segment profit | 1,133.1 | 1,131.5 | 1,193.3 | |
Depreciation and amortization | (607.5) | (638.6) | (617) | |
Impairments | (0.8) | (362.8) | (1,133.5) | |
Gain (loss) on disposition of assets | 1.5 | (8.8) | 1.9 | |
General and administrative | (107.8) | (103.3) | (152.6) | |
Loss on secured term loan receivable | 0 | 0 | (52.9) | |
Interest expense, net of interest income | (238.7) | (223.3) | (216) | |
Gain on extinguishment of debt | 0 | 32 | 0 | |
Income (loss) from unconsolidated affiliates | (11.5) | 0.6 | (16.8) | |
Other income | 0 | 0.3 | 0.9 | |
Income (loss) before non-controlling interest and income taxes | 168.3 | (172.4) | (992.7) | |
Related parties amount in cost of sales | 17.9 | 8.7 | 21.7 | |
Capital expenditures | 196 | 262.6 | 748.4 | |
Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 2,390.6 | 1,106.5 | 2,542.3 | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | (1,996.1) | (842.2) | (2,283.9) | |
Realized gain (loss) on derivatives | (75.6) | (1.1) | 9.4 | |
Change in fair value of derivatives | (7.7) | 1.1 | 1.5 | |
Adjusted gross margin | 311.2 | 264.3 | 269.3 | |
Operating expenses | (81.5) | (94.2) | (112.9) | |
Segment profit | 229.7 | 170.1 | 156.4 | |
Depreciation and amortization | (139.9) | (125.2) | (119.8) | |
Impairments | 0 | (184.6) | (3.5) | |
Gain (loss) on disposition of assets | 0 | (11.2) | (0.3) | |
General and administrative | 0 | 0 | 0 | |
Loss on secured term loan receivable | 0 | |||
Interest expense, net of interest income | 0 | 0 | 0 | |
Gain on extinguishment of debt | 0 | |||
Income (loss) from unconsolidated affiliates | 0 | 0 | 0 | |
Other income | 0 | 0 | ||
Income (loss) before non-controlling interest and income taxes | 89.8 | (150.9) | 32.8 | |
Capital expenditures | 141.6 | 181.1 | 364.5 | |
Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 4,581.4 | 2,205.1 | 2,622.8 | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | (4,091.2) | (1,787) | (2,181.6) | |
Realized gain (loss) on derivatives | (42.3) | (6) | 5.1 | |
Change in fair value of derivatives | 0.7 | (6.5) | (1.8) | |
Adjusted gross margin | 448.6 | 405.6 | 444.5 | |
Operating expenses | (123.7) | (120) | (147.3) | |
Segment profit | 324.9 | 285.6 | 297.2 | |
Depreciation and amortization | (141) | (145.8) | (154.1) | |
Impairments | (0.6) | (170) | (188.7) | |
Gain (loss) on disposition of assets | 1.2 | 0.1 | 2.6 | |
General and administrative | 0 | 0 | 0 | |
Loss on secured term loan receivable | 0 | |||
Interest expense, net of interest income | 0 | 0 | 0 | |
Gain on extinguishment of debt | 0 | |||
Income (loss) from unconsolidated affiliates | 0 | 0 | 0 | |
Other income | 0 | 0 | ||
Income (loss) before non-controlling interest and income taxes | 184.5 | (30.1) | (43) | |
Capital expenditures | 9.3 | 44.6 | 99.9 | |
Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,226.8 | 862 | 1,181.1 | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | (796.6) | (365.5) | (627) | |
Realized gain (loss) on derivatives | (22.6) | (4.4) | 0 | |
Change in fair value of derivatives | 0 | (4.5) | 0 | |
Adjusted gross margin | 407.6 | 487.6 | 554.1 | |
Operating expenses | (80) | (82.2) | (104) | |
Segment profit | 327.6 | 405.4 | 450.1 | |
Depreciation and amortization | (204.3) | (216.9) | (194.9) | |
Impairments | 0 | (0.7) | (813.5) | |
Gain (loss) on disposition of assets | 0 | 0.3 | 0.1 | |
General and administrative | 0 | 0 | 0 | |
Loss on secured term loan receivable | 0 | |||
Interest expense, net of interest income | 0 | 0 | 0 | |
Gain on extinguishment of debt | 0 | |||
Income (loss) from unconsolidated affiliates | 0 | 0 | 0 | |
Other income | 0 | 0 | ||
Income (loss) before non-controlling interest and income taxes | 123.3 | 188.1 | (558.2) | |
Capital expenditures | 30.4 | 17.9 | 238.1 | |
North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 872 | 502.2 | 601.1 | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | (531.8) | (153.8) | (208.8) | |
Realized gain (loss) on derivatives | (6.2) | 0 | 0 | |
Change in fair value of derivatives | (5.4) | (0.6) | 0.2 | |
Adjusted gross margin | 328.6 | 347.8 | 392.5 | |
Operating expenses | (77.7) | (77.4) | (102.9) | |
Segment profit | 250.9 | 270.4 | 289.6 | |
Depreciation and amortization | (114.3) | (143.4) | (139.8) | |
Impairments | 0 | 0 | (127.8) | |
Gain (loss) on disposition of assets | 0.3 | 2 | (0.5) | |
General and administrative | 0 | 0 | 0 | |
Loss on secured term loan receivable | 0 | |||
Interest expense, net of interest income | 0 | 0 | 0 | |
Gain on extinguishment of debt | 0 | |||
Income (loss) from unconsolidated affiliates | 0 | 0 | 0 | |
Other income | 0 | 0 | ||
Income (loss) before non-controlling interest and income taxes | 136.9 | 129 | 21.5 | |
Capital expenditures | 11.9 | 16.9 | 39 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (2,225.8) | (760) | (908.8) | |
Cost of sales, exclusive of operating expenses and depreciation and amortization | 2,225.8 | 760 | 908.8 | |
Realized gain (loss) on derivatives | 0 | 0 | 0 | |
Change in fair value of derivatives | 0 | 0 | 0 | |
Adjusted gross margin | 0 | 0 | 0 | |
Operating expenses | 0 | 0 | 0 | |
Segment profit | 0 | 0 | 0 | |
Depreciation and amortization | (8) | (7.3) | (8.4) | |
Impairments | (0.2) | (7.5) | 0 | |
Gain (loss) on disposition of assets | 0 | 0 | 0 | |
General and administrative | (107.8) | (103.3) | (152.6) | |
Loss on secured term loan receivable | (52.9) | |||
Interest expense, net of interest income | (238.7) | (223.3) | (216) | |
Gain on extinguishment of debt | 32 | |||
Income (loss) from unconsolidated affiliates | (11.5) | 0.6 | (16.8) | |
Other income | 0.3 | 0.9 | ||
Income (loss) before non-controlling interest and income taxes | (366.2) | (308.5) | (445.8) | |
Capital expenditures | 2.8 | 2.1 | 6.9 | |
Product sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 5,994 | 2,977.5 | 5,030.1 | |
Product sales | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,287.7 | 708.4 | 2,070.2 | |
Product sales | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 4,258.6 | 2,002.6 | 2,434.1 | |
Product sales | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 296.6 | 196.2 | 365.6 | |
Product sales | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 151.1 | 70.3 | 160.2 | |
Product sales | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Natural gas sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,666.3 | 704 | 876.6 | |
Natural gas sales | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 609.4 | 150.1 | 94.3 | |
Natural gas sales | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 693.5 | 330.5 | 416.6 | |
Natural gas sales | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 213.4 | 153.1 | 236.4 | |
Natural gas sales | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 150 | 70.3 | 129.3 | |
Natural gas sales | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
NGL sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 3,357.1 | 1,548.4 | 1,777 | |
NGL sales | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.9 | 0.2 | 0.9 | |
NGL sales | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 3,353.1 | 1,545.4 | 1,725.6 | |
NGL sales | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 2 | 2.8 | 19.6 | |
NGL sales | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1.1 | 0 | 30.9 | |
NGL sales | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude oil and condensate sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 970.6 | 725.1 | 2,376.5 | |
Crude oil and condensate sales | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 677.4 | 558.1 | 1,975 | |
Crude oil and condensate sales | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 212 | 126.7 | 291.9 | |
Crude oil and condensate sales | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 81.2 | 40.3 | 109.6 | |
Crude oil and condensate sales | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude oil and condensate sales | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Product sales—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Product sales—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,008.4 | 313.2 | 361.6 | |
Product sales—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 129.7 | 31.4 | 27.4 | |
Product sales—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 630.9 | 296.3 | 421.1 | |
Product sales—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 454.1 | 118.8 | 100.3 | |
Product sales—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (2,223.1) | (759.7) | (910.4) | |
Natural gas sales—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Natural gas sales—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.4 | |||
Natural gas sales—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Natural gas sales—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Natural gas sales—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Natural gas sales—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (0.4) | |||
NGL sales—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
NGL sales—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1,008.4 | 312.6 | 347.7 | |
NGL sales—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 129.7 | 31.4 | 25.7 | |
NGL sales—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 630.8 | 296.4 | 421.1 | |
NGL sales—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 447 | 115.2 | 94.8 | |
NGL sales—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (2,215.9) | (755.6) | (889.3) | |
Crude oil and condensate sales—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude oil and condensate sales—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0.6 | 13.5 | |
Crude oil and condensate sales—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 1.7 | |
Crude oil and condensate sales—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.1 | (0.1) | 0 | |
Crude oil and condensate sales—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 7.1 | 3.6 | 5.5 | |
Crude oil and condensate sales—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (7.2) | (4.1) | (20.7) | |
Midstream services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 851 | 938.3 | 1,008.4 | |
Midstream services | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 94.5 | 84.9 | 110.5 | |
Midstream services | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 190.7 | 171.1 | 164.7 | |
Midstream services | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 299 | 369.2 | 392.6 | |
Midstream services | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 266.8 | 313.1 | 340.6 | |
Midstream services | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Gathering and transportation | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 455.4 | 497.2 | 538 | |
Gathering and transportation | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 46.8 | 42.8 | 48.8 | |
Gathering and transportation | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 64.7 | 46.5 | 58.3 | |
Gathering and transportation | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 186.9 | 228.7 | 234.5 | |
Gathering and transportation | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 157 | 179.2 | 196.4 | |
Gathering and transportation | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Processing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 238.5 | 282.3 | 314.9 | |
Processing | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 29.1 | 24.1 | 30.5 | |
Processing | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 2.4 | 2 | 3.2 | |
Processing | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 98.7 | 123.6 | 138.2 | |
Processing | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 108.3 | 132.6 | 143 | |
Processing | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
NGL services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 82.9 | 76 | 50.7 | |
NGL services | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
NGL services | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 82.6 | 75.8 | 50.6 | |
NGL services | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
NGL services | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.3 | 0.2 | 0.1 | |
NGL services | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 71.2 | 78.7 | 90.9 | |
Crude services | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 18.4 | 16.8 | 19.2 | |
Crude services | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 39.3 | 45.2 | 51.9 | |
Crude services | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 12.8 | 16.5 | 19.8 | |
Crude services | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.7 | 0.2 | 0 | |
Crude services | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Other services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 3 | 4.1 | 13.9 | |
Other services | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.2 | 1.2 | 12 | |
Other services | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 1.7 | 1.6 | 0.7 | |
Other services | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.6 | 0.4 | 0.1 | |
Other services | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.5 | 0.9 | 1.1 | |
Other services | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Midstream services—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Midstream services—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Midstream services—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 2.4 | 0 | (3.4) | |
Midstream services—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.3 | 0.3 | 1.8 | |
Midstream services—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Midstream services—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (2.7) | (0.3) | 1.6 | |
NGL services—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
NGL services—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
NGL services—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (3.4) | |||
NGL services—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
NGL services—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
NGL services—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 3.4 | |||
Crude services—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude services—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude services—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude services—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0.3 | 0.3 | 1.8 | |
Crude services—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | |
Crude services—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | (0.3) | $ (0.3) | $ (1.8) | |
Other services—related parties | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Other services—related parties | Permian | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Other services—related parties | Louisiana | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 2.4 | |||
Other services—related parties | Oklahoma | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Other services—related parties | North Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 0 | |||
Other services—related parties | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | $ (2.4) | |||
[1] | Includes related party cost of sales of $17.9 million, $8.7 million, and $21.7 million for the years ended December 31, 2021, 2020, and 2019, respectively. |
Segment Information - Amortizat
Segment Information - Amortization Expense (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Assets | $ 8,483.2 | $ 8,550.9 |
Permian | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,358.6 | 2,236.3 |
Louisiana | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,428.6 | 2,312.4 |
Oklahoma | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,619.5 | 2,847.6 |
North Texas | ||
Segment Reporting Information [Line Items] | ||
Assets | 896.8 | 1,008.6 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 179.7 | $ 146 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | $ 208.8 | $ 207.3 | $ 218.9 |
Cash paid (refunded) for income taxes | 0.3 | (0.7) | 4 |
Cash paid for finance leases included in cash flows from financing activities | 0 | 0 | 1.2 |
Cash paid for operating leases included in cash flows from operating activities | 24.6 | 24.6 | 29.8 |
Non-cash investing activities: | |||
Non-cash accrual of property and equipment | 12 | (39.6) | (6.5) |
Non-cash right-of-use assets obtained in exchange for operating lease liabilities | 18.7 | 9.8 | 104.1 |
Non-cash acquisitions | 16.9 | 0 | 0 |
Non-cash financing activities: | |||
Receivable from sale of VEX | 0 | 10 | 0 |
Redemption of non-controlling interest | $ 0 | $ (4) | $ 0 |
Other Information - Other Curre
Other Information - Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other current assets: | ||
Natural gas and NGLs inventory | $ 49.4 | $ 44.9 |
Prepaid expenses and other | 34.2 | 13.8 |
Other current assets | $ 83.6 | $ 58.7 |
Other Information - Other Cur_2
Other Information - Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other current liabilities: | ||
Accrued interest | $ 47.2 | $ 35.7 |
Accrued wages and benefits, including taxes | 33.1 | 22.5 |
Accrued ad valorem taxes | 28.3 | 26.5 |
Capital expenditure accruals | 23.2 | 10.6 |
Short-term lease liability | 18.1 | 16.3 |
Installment payable | 10 | 0 |
Inactive easement commitment | 9.8 | 0 |
Operating expense accruals | 9.6 | 8.4 |
Other | 23.6 | 29.1 |
Other current liabilities | $ 202.9 | $ 149.1 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Subsequent Event [Line Items] | ||||
Redemption of Series B Preferred Units | $ 50 | $ 0 | $ 0 | |
Series B Preferred Units | ||||
Subsequent Event [Line Items] | ||||
Stock redeemed during period (in shares) | 3,300,330 | |||
Redemption of Series B Preferred Units | $ 50 | |||
Redemption price of preferred stock, percent | 101.00% | |||
Subsequent Event | Series B Preferred Units | ||||
Subsequent Event [Line Items] | ||||
Stock redeemed during period (in shares) | 3,333,334 | |||
Redemption of Series B Preferred Units | $ 50.5 | |||
Redemption price of preferred stock, percent | 101.00% |
Uncategorized Items - enlc-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |