DENVER - Today, DCP Midstream, LP (NYSE: DCP) reported its financial results for the three and nine months ended September 30, 2020.
HIGHLIGHTS
For the respective three and nine months ended September 30, 2020, DCP generated net income (loss) attributable to partners of $111 million and $(392) million; net cash provided by operating activities of $268 million and $791 million; adjusted EBITDA of $331 million and $963 million and distributable cash flow of $232 million and $672 million.
Generated $130 million and $152 million of excess free cash flow for the three and nine months ended September 30, 2020, after fully funding $82 million and $325 million in distributions and $20 million and $193 million in growth capital expenses, respectively.
Reduced debt by $175 million year to date, including $156 million in the third quarter, and lowered bank leverage to 3.9 times for the twelve months ended September 30, 2020.
Third quarter costs down $43 million compared to the same period in 2019, resulting in an 17%, or $130 million, year to date reduction driven by continued cost discipline and DCP 2.0 transformation efforts.
Year to date total capital, including all sustaining and growth capital, has been reduced 71% compared to 2019.
Logistics and Marketing segment accounted for 62% of Q3 Adjusted EBITDA, with third quarter Logistics and Marketing Adjusted EBITDA increasing approximately 8% year over year, driven by increased earnings on Gulf Coast Express, Sand Hills, Southern Hills, and Front Range, partially offset by lower Guadalupe and NGL Marketing earnings.
Gathering and Processing segment Adjusted EBITDA increased 5% year over year, driven by increased overall wellhead margin and cost discipline, partially offset by lower volumes and dampened commodity prices.
This press release includes the following financial measures not presented in accordance with U.S. generally accepted accounting principles, or GAAP: adjusted EBITDA, distributable cash flow, excess free cash flow, and adjusted segment EBITDA. Each such non-GAAP financial measure is defined below under 'Non-GAAP Financial Information', and each is reconciled to its most directly comparable GAAP financial measure under 'Reconciliation of Non-GAAP Financial Measures' in schedules at the end of this press release.
CEO'S PERSPECTIVE
'Our team continues to execute successfully through the cycle, delivering strong financial results while maintaining top safety and reliability performance,' said Wouter van Kempen, chairman, president, and CEO. 'With a focus on optimization and discipline, our ability to generate $152 million of excess free cash flow and reduce debt by $175 million year-to-date demonstrates the resiliency and durability of the DCP business model, and we remain committed to strengthening the balance sheet to ensure stability in times of continued uncertainty.'
COMMON UNIT DISTRIBUTIONS
On October 16, 2020, DCP announced a quarterly common unit distribution of $0.39 per limited partner unit.
DCP generated distributable cash flow of $232 million and $672 million for the three and nine months ended September 30, 2020, respectively. Distributions declared were $81 million and $244 million for the three and nine months ended September 30, 2020, respectively.
ABOUT DCP MIDSTREAM, LP
DCP Midstream, LP (NYSE: DCP) is a Fortune 500 midstream master limited partnership headquartered in Denver, Colorado, with a diversified portfolio of gathering, processing, logistics and marketing assets. DCP is one of the largest natural gas liquids producers and marketers, and one of the largest natural gas processors in the U.S. The owner of DCP's general partner is a joint venture between Enbridge and Phillips 66.
CAUTIONARY STATEMENTS
This press release may contain or incorporate by reference forward-looking statements as defined under the federal securities laws regarding DCP Midstream, LP, including projections, estimates, forecasts, plans and objectives. Although management believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond DCP's control. If any of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, DCP's actual results may vary materially from what management forecasted, anticipated, estimated, projected or expected.
The key risk factors that may have a direct bearing on DCP's results of operations and financial condition are described in detail in the 'Risk Factors' section of DCP's most recently filed annual report and subsequently filed quarterly reports with the Securities and Exchange Commission. Investors are encouraged to closely consider the disclosures and risk factors contained in DCP's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. The forward looking statements contained herein speak as of the date of this announcement. DCP undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Information contained in this press release is unaudited and subject to change.
Contact:
Sarah Sandberg
Tel: 303-605-1626
Email: scsandberg@dcpmidstream.com
DCP MIDSTREAM, LP 
