DCP 2.0 Transformation
Forward-Looking Statements
This presentation may contain or incorporate by reference forward-looking statements regarding DCP Midstream, LP (the "Partnership" or "DCP") and its affiliates, including outlook, guidance, projections, estimates, forecasts, plans, and objectives. All statements in this presentation, other than statements of historical fact, are forward-looking statements and are typically identified by words such as "target," "outlook," "guidance," "may," "could," "will," "should," "intend," "assume," "project," "believe," "predict," "anticipate," "expect," "scheduled," "estimate," "budget," "optionality," "potential," "plan," "forecast," and other similar words and expressions. Although management believes that expectations reflected in such forward-looking statements are based on reasonable assumptions, no assurance can be given that such expectations will prove to be correct due to risks, uncertainties, and assumptions that are difficult to predict and that may be beyond our
control. If any of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, the Partnership's actual results may
vary materially from what management anticipated, expected, projected, estimated, forecasted, planned, or intended. You are cautioned not to place undue reliance on any forward-looking statements.
Investors are encouraged to consider closely the risks and uncertainties disclosed in the Partnership's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, which risks and uncertainties include, but are not limited to, the ongoing global economic impacts of the COVID-19 pandemic, pricing and supply actions by oil exporting countries, the resulting supply of, demand for, and price of oil, natural gas, NGLs, and related products and services, the duration of the foregoing impacts, and the time period for any recovery in commodity prices and demand. These risks and uncertainties could cause our actual results to differ materially from the forward-looking statements in this presentation, which may include, but are not limited to, our expectations on outlook, guidance, and sensitivities, our 2020 mitigating actions and options including distribution, capital, and cost reductions, our sources and uses of liquidity and sufficiency of financial resources, our projected in-service dates for growth projects, and our construction costs or capital expenditures in relation to estimated or budgeted amounts. Furthermore, in addition to causing our actual results to differ, such risks and uncertainties may cause our assumptions and intentions to change at any time and without notice, and any such changes may also cause our actual results to differ materially from the forward-looking statements in this presentation.
The Partnership undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Information contained in this presentation speaks only as of the date hereof unless otherwise expressed, is unaudited, and is subject to change.
Regulation G: This document includes non-GAAP financial measures as defined under the rules and regulations of the Securities and Exchange Commission, such as adjusted EBITDA, distributable cash flow, excess free cash flow, segment adjusted EBITDA, segment adjusted gross margin, forecasted adjusted EBITDA, forecasted distributable cash flow, and forecasted excess free cash flow. A reconciliation of these measures to the most directly comparable GAAP measures is included in the Appendix to this presentation.
Note: All presentation statistics and year-to-date numbers are as of September 30, 2020 unless otherwise noted.
2
Diversified Portfolio of Assets in Premier Basins
Leading Midstream Provider
Integrated Logistics & Marketing and Gathering & Processing business with competitive footprint and geographic diversity
Unparalleled interconnectivity and access to fractionators on the Gulf Coast, including Mt. Belvieu and Sweeny, with Conway for optionality
Leading industry positions in premier basins, including the DJ Basin, Permian, Eagle Ford, and SCOOP
Miles of | Bcf/d | MMBpd NGL | Bcf/d Natural | |
Plants | processing | Pipeline | Gas Pipeline | |
57KPipeline 39 | ||||
6.0capacity (1) | 1.7capacity | 2.8capacity |
One of the largest NGL producers and gas processors in the United States
(1) Includes only DCP processing plant capacity | 3 |
Digital Adoption Curve
Source: McKinsey & Company
4
DCP 2.0 Digital Transformation Journey
Transformation Office + Business Driven:
Maturing Practices and Digital Solutions
DCP 2020 | |||||
People, | |||||
DCP Tech | Process, | ||||
Transformation Office Led: | Ventures | Technology | |||
Discovery / Experimentation | Transformation | ||||
objectives expand from | |||||
People, | Project | core team to 25% of | Design | ||
based LEAN | STI across the | Thinking | |||
Process, | |||||
company | |||||
Technology | |||||
Self-service | Agile Product | ||||
Advanced | |||||
DCP 2020 | Design Thinking | Development | |||
Analytics | |||||
Robotic | |
Process | |
Agile Product | Automation |
Development |
Employee / SME Led:
End to End - Continuous Improvement
DCP 2020 | People, | |
Digital | Process, | |
Business | Technology | |
Monetization | & DATA | |
ESG | Design | |
Enhancement | ||
Thinking | ||
Fully aligned | ||
Enterprise | transformation agenda | |
Lean Business | throughout DCP, |
System | exploring digitally | Agile Product |
Development | ||
enabled lean business | ||
system | ||
Advanced | DCP Tech | |
Predictive | ||
Ventures | ||
Analytics | ||
Enterprise | Robotic | |
Data | ||
Process | ||
Management | ||
Automation | ||
Hyper | ||
Automation |
2016 - 2017 | 2017 - 2019 | 2020 - 2023 |
45% of employee short term incentives tied to execution of transformation objectives
5
DCP 2.0: Driving the Operations of the Future
DCP 2.0 Strategic Objectives
Achieve Real-Time
Optimization and Decision
Making
- Utilize real-time data from a variety of sources to make the most strategic business decisions
- Increase reliability and asset runtime
- Improve margin by optimizing the value of every asset and every molecule
Digitally Enable the
Business and Workforce
- Drive workforce efficiencies through automation
- Create digital platforms to improve employees' quality of life and customer experience
- Build high-tech portfolio and world-class Workforce of Today
- Establish culture of innovation and agility
Increase Cash Flow While
Diminishing Risk
- Improve safety and decrease emissions
- Enhance process and equipment monitoring program
- Drive substantial cost reduction via lean manufacturing platform
- Utilize predictive analytics to improve asset maintenance
Real-Time | Better Reliability | Asset | Higher | Cost |
Decisions | and Safety | Optimization | Margins | Savings |
Industry leading transformation through people, process, and technology
6
ICC and Remote Operations
Integrated Collaboration
Center (ICC)
Linking Numerous Data Sources
SCADA | Financial | Real-Time | KPIs | Contracts | Engineering |
and DCS | Data | Prices | Data | ||
Integrated Collaboration Center
- ICC continues to gain momentum with functionality; now tracking data and optimizing the majority of plants
- Incorporating operations, engineering, commercial, and market data
- Focus expanding to the field, including large infrastructure of pipelines and compressors
- 24/7 monitoring for major field assets
Remote Operations
- 20 facilities incorporated into the ICC for remote operations in 2019; four transitioned YTD 2020
- During COVID-19 lockdowns, facilities are operated from employee homes
- Driving increased cross-functional collaboration among gas controllers, plant and field coordinators, optimizers, and board operators
- Strengthening integration between plants and across regions
- A platform by which plant operation best practices can be identified and quickly replicated
Enhancing DCP's ability to optimize cash flow and ensure business continuity through technology
7
8
Margin Optimization
Recovery-Based | Major Equipment Failure* | ||||||||||||||||
Performance | 60 | ||||||||||||||||
99% | 50 | ||||||||||||||||
40 | |||||||||||||||||
97% | 30 | ||||||||||||||||
95% | 20 | ||||||||||||||||
All DCP Plants | Remotely operated Plants | 10 | |||||||||||||||
93% | 0 | ||||||||||||||||
2018 | 2019 | 2020 | 2018 | 2019 | 2020 | ||||||||||||
Big data insights drive | Decreasing major equipment failures, | ||||||||||||||||
plant performance & optimization | equating to less unplanned downtime | ||||||||||||||||
through digital twin simulation | through AI driven predictive analytics | ||||||||||||||||
7B data points processed | 70% reduction in major | ||||||||||||||||
each day to optimize every | equipment failures, enabling |
molecule | better volume management |
*Equipment refers to engines, compressors, motors, and pumps at compressor stations and plants | 9 |
2019 to 2020e Industry Cost Reduction
Q3 DCP Results
$130MM (17%) YoY Cost Reduction YTD
31%
15% 16%
11%
5% 6% 7% 7%
2% 3%
0%
(13%) (12%) (11%) (11%) (10%)
(17%)
(21%) (21%)
(2%) (2%) (1%) (1%)
(4%)
(9%) (8%) (7%)
Peer 1 | Peer 2 | Peer 3 | DCP | Peer 5 | Peer 6 | Peer 7 | Peer 8 | Peer 9 | Peer 10 | Peer 11 | Peer 12 | Peer 13 | Peer 14 | Peer 15 | Peer 16 | Peer 17 | Peer 18 | Peer 19 | Peer 20 | Peer 21 | Peer 22 | Peer 23 | Peer 24 | Peer 25 | Peer 26 | Peer 27 |
Leading cost reduction effort to drive excess free cash flow while maintaining OE
Source: UBS Research. Costs include Opex and G&A | 10 |
Peers include: AM, BPMP, CEQP, CQP, ENBL, ENLC, ET, ETRN, HEP, KMI, LNG, MMP, NGL, NS, OKE, PAA, PBFX, PPL-TSE, RTLR, SHLX, SUN, TCP, TRGP, TRP-TSE, USAC, and WMB
DCP Technology Ventures
Accelerating digital transformation and technology adoption for the midstream industry to improve sustainability and increase optimization
Startups &
Accelerators
Venture Universities
Capitalists & Global
Alliances
Rapidly Piloting & Adopting Emerging Tech
Safety
- Encroachment Tech - Satellites, Drones, Fiber
- Plastic Pipeline Detection
- Smart Wearables
Sustainability
- Carbon Capture, Utilization, and Storage (CCUS)
- Methane Detection and Reduction
- Edge Cameras and Analytics
Digital Enablement
- Digital Applications for the Workforce of Today
- Artificial Intelligence & Machine Learning
- Industrial Internet of Things (IIoT Edge)
Reliability
- Predictive Asset Maintenance
- Smart Sensors & Ultra Capacitors
Other Emerging Technologies
- Membranes and Acoustics
- New Energy - Fuel Cells, Hydrogen, Nuclear
11
DCP 2.0 Delivering Competitive Advantage
Enhancing our sustainability results via emerging technology adoption to ensure long-term durability and operational excellence
Technology adoption, including remote operations allows for business continuity during crisis, including the COVID-19 pandemic
Driving margin uplift through Integrated Collaboration Center optimization and improved reliability to create maximum returns from existing assets
Enabling best in class cost and capital discipline to increase sustainable excess FCF generation
Operating scalable, cutting-edge digital platform that positions DCP
well for potential midstream consolidation cycle
Creating long-term value and driving increased unitholder return
12
Appendix
13
DCP Midstream Snapshot
NYSE | FORTUNE | Excess | |||
DCP TICKER | 500 | $152MM YTDFCF | |||
$3.1B CAPMARKET | NUMBER | ||||
413 | $1.3B | ||||
1.6MM TRADING VOLUME | AVAILABLE | ||||
LIQUIDITY | |||||
AVG. 52-week | |||||
$.39 / $1.56 ANNUALIZED | Ba2 / BB+ / BB+ | ||||
DISTRIBUTION PAYMENT | CREDIT RATINGS |
$14.71
UNIT PRICE
2020 GPA Midstream
$ | 17.1B | Association Awards |
for Environmental | ||
TOTAL ASSET BASE(1) | Excellence and | |
Energy Conservation | ||
COMPETITIVE POSITION
- Fully integrated value chain with predominantly fee-based assets generating excess free cash flow through 2021
- Large footprint in advantaged basins across nine states
- Industry-leadinginnovation and digital transformation via DCP 2.0
Note: Market statistics as of November 9, 2020 | 14 |
(1) Total Asset Base for Q3 2020 = Gross PPE + Intangibles + Investments in Unconsolidated Affiliates | |
Compelling Investor Value Proposition
INTEGRATED MIDSTREAM PROVIDER
- Fully integrated midstream business, with strong Logistics portfolio and geographically diverse, premier asset base
- Broad NGL pipeline footprint with unparalleled access to fractionators along the Gulf Coast, including Mont Belvieu and Sweeny, with Conway providing optionality for customers
- Leading industry positions in the DJ Basin, Northern Delaware (Permian), Eagle Ford, and SCOOP (Midcontinent)
- Only 7% of DCP's dedicated acreage is on Federal lands
EXCESS FREE CASH FLOW POSITIVE
- Excess free cash flow positive in 2020 and into 2021, increasing liquidity and accelerating delevering
- Early downturn mitigation driving ~$900MM of retained cash through substantial cost and capital savings
- Supply long, capacity short strategy focused on using existing infrastructure, offloads, and strategic asset dispositions to efficiently integrate and harness the earnings power of broad, high-quality footprint
SUSTAINABILITY & TECHNOLOGY
LEADERSHIP
- 2020 GPA Midstream Association Awards for Environmental Excellence and Energy Conservation
- DCP 2.0 digital transformation increasing cash flow while minimizing risk via real-time optimization & decision making
- DCP Technology Ventures evaluating emerging technologies to improve sustainability and drive efficiencies
-
Recognized by the World Economic Forum as a member of the
Global Lighthouse Network, distinguishing the world's top advanced manufacturing companies
FINANCIAL FLEXIBILITY & STABILITY
- 3.9x bank leverage ratio(1) with primary financial focus on long-termdelevering
- $1.75B capacity via bank facility and A/R securitization facility; ample liquidity secured with $1.3 billion unutilized
- No common equity offerings since March 2015
- Exceeding 80% fee and hedged target for 2020
- Providing attractive yield for unitholders through the cycle
(1) Bank leverage ratio calculation = Total debt (excludes $550 million Jr. Subordinated notes which are treated as equity) less cash divided by adjusted EBITDA, plus certain | 15 |
project EBITDA credits from projects under construction |
DCP Business Evolution
2010* | Extended and enhanced Logistics | 2020 |
& Marketing (L&M) value chain |
Strategically aligned Gathering &
Processing (G&P) footprint
Opportunistic consolidation, right-sizing the portfolio
DCP 2.0 transformation through people, process, and technology
Optimizing cost structure and generating excess free cash flow
Adjusted EBITDA by Segment
10% | |
55% | 45% |
90% |
FY 2010*
FY 2019
Logistics & Marketing Gathering & Processing
Transformed into a fully integrated midstream provider with a balanced portfolio
* Consolidated Enterprise | 16 |
Resiliency and Durability of the DCP Model
Health and Safety
Priority
Protecting our
employees,
contractors, customers,
and communities
Growing Excess Free Cash Flow
Generated $130 million of excess free cash flow(1) in Q3; $152 million YTD
Operational | Continued Cost & |
Excellence | Capital Efficiency |
Maintaining top safety | Expect to beat YoY $120MM |
performance while driving | cost reduction target; |
emissions reductions and | Delivering a 71% reduction |
improved reliability | in YTD total capital |
Prioritizing Debt | Leading on Innovation |
Reduction | & Transformation |
$156 million of debt | Recognized by World |
reduction in Q3; | Economic Forum as Global |
Bank leverage | Lighthouse; Launched largest |
improved to 3.9x(2) | industry-led methane survey |
- Excess Free Cash Flow = DCF less distributions to limited partners and the general partner, less distributions to noncontrolling interests, and less expansion capital
expenditures and contributions to equity method investments | 17 |
- Bank leverage ratio calculation = Bank debt (excludes $550 million Jr. Subordinated notes which are treated as equity) less cash, divided by Adjusted EBITDA, plus certain capital project EBITDA credits
Successfully Navigating 2020
PRIORITY | ACTION | RESULT | ||
Health & Safety | • Implemented pandemic response plan to | • | Healthy workforce | |
ensure safety of our employees, | • Business continuity; safe and reliable | |||
customers, communities, and operations | operations | |||
• Launched largest industry-led methane | • Step change reduction of emissions in the | |||
Sustainability | Permian | |||
survey | ||||
• Published inaugural Sustainability report | ||||
• | Established Sustainability Council | |||
• | Established I&D Committee | |||
• | Established Cost Task Force | • Optimized ~$900MM of retained cash flow | ||
Improve Cash Flow | • | Reduced total capital, including deferral | • $152MM of excess FCF generated YTD | |
of Sweeny Fractionator option | • $130MM YTD cost reduction YoY | |||
• | 50% distribution reduction | • Total capital down 71% YoY | ||
Increase Liquidity | • Issued $500MM of senior notes in Q2; | • | ~$1.3B of available liquidity | |
proceeds used to pay down bank facility | ||||
Reduce Leverage | • Established as top capital allocation | • $175MM of debt reduction YTD | ||
• Bank leverage improved to 3.9x | ||||
priority | ||||
• Fitch improved to stable outlook | ||||
Maintain Utilization | • Long-term supply long, capacity short | |||
strategy | • Overbuild mitigation in advance of downturn | |||
Rates | • | Proactive retention of volumes via short- | • G&P and L&M volumes meeting expectations | |
term optimization of netbacks in Q2 | ||||
Focused on cost and capital management, while maintaining safe and reliable
operations, to drive excess FCF and strengthen the balance sheet
18
Delivering on Commitments
Q3 Results | Q4 Outlook | 2H Expectations | ||
L&M Volumes | Q3 volumes | Expected declines due to | ||
flat to Q2 | reduced ethane recovery | |||
G&P Volumes | Q3 volumes slightly | Slight increase | ||
down to Q2 | in volumes | |||
Ethane | ~50% increase in ethane | Maintaining partial | ||
Rejection | recovery from Q2 | recovery | ||
Costs | Slight sequential | Increased costs due to | ||
increase | project deferrals | |||
Sustaining | Continued discipline driving | Increased capital due to | ||
Capital | spend down meaningfully | project deferrals | ||
Growth Capital | Slightly exceeded high | Minimal | ||
end of range in Q3 | capex | |||
NGL - $0.44/gal | Stronger natural gas | |||
Prices | Nat Gas - $1.98/MMBtu | |||
prices; NGL and crude flat | ||||
Crude - $40.93/Bbl | ||||
Outperformance demonstrating resiliency and durability of DCP business model
19
Safety & Operational Excellence
DCP Total Recordable Injury Rates(1)
Incidents per 200,000 hours worked
0.93 | 0.87 | ||
0.79 | |||
0.66 | |||
0.82 | |||
0.44 | 0.36 | ||
0.30 | |||
2016 | 2017 | 2018 | 2019 |
GPA Midstream Division 1 Companies |
4.5 | Industry Safety Metrics(2) |
Incidents per 200,000 hours worked | |
3.7 | |
3 | |
1.9 | |
1.3 |
0.40.3
Transportation and | Educational and | Construction | Utilities | Professional and | Petroleum Refineries | DCP |
Warehousing | Health Services | Business Services |
(1) | Industry average data from GPA Midstream Association | 20 |
(2) | Safety metrics from Bureau of Labor Statistics as of 2018 | |
Solid Financial Position
Increased
Excess FCF
$152MM
Enhanced
Efficiencies
17% YoY
Cost
Reduction
Lowered
Debt
$175MM
Diversified
Earnings
62%
Logistics
Improved | Solid | |
Leverage | Liquidity | |
3.9x | ~$1.3B | |
Stable | RA | |
Cash Flows | Progress | |
83%(1) | Fitch | |
Fee + | Improved | |
Hedged | to Stable | |
Strengthening the balance sheet to ensure stability through continued uncertainty
Note: All metrics represent YTD results as of September 30, 2020 except leverage, which is calculated on a TTM basis | 21 |
- 70% fee plus 30% commodity margin x 43% hedged = 83% fee and hedged as of October 31, 2020
Long-Term Financial Priorities
Generate | Reduce | |
Excess Free | ||
Leverage | ||
Cash Flow | ||
Improve
Credit
Ratings
- Excess free cash flow positive in 2020 and 2021, enhancing liquidity and delevering
- Premier assets, cost and capital discipline, and DCP 2.0 driving sustainable excess FCF optimization
- Delevering is top capital allocation priority
- Current bank leverage at 3.9x, better than 2020 target of 4.0x
- Targeting 3.5x leverage ratio
- No common equity issued since 2015
- Ba2/BB+/BB+ credit ratings
- Continual drive toward investment grade to lower cost of capital
2020 Excess FCF Generation
(in $MM)
$406
Substantial excess free cash flow being utilized to delever
Growth Capital | Distributions | 2020e DCF |
22
World Economic Forum Designation
DCP joins the World Economic Forum's Global Lighthouse Network of companies leading the world on innovation via Fourth Industrial Revolution technological adoption at scale
1 of 54 | 1 of 5 | 1 of 1 | |||
COMPANIES | COMPANIES | COMPANIES | |||
SELECTED INTO | RECOGNIZED IN | IN THE US OIL AND | |||
THE GLOBAL | |||||
GAS INDUSTRY | |||||
LIGHTHOUSE | NORTH AMERICA | ||||
RECOGNIZED | |||||
NETWORK | |||||
23
Long-Term Global Demand for Natural Gas
World Primary Energy Demand by Fuel (BTOE) | Share by Fuel | ||||||||||||||||||||||||||
Renewables | |||||||||||||||||||||||||||
14% | Coal | ||||||||||||||||||||||||||
20 | 27% | ||||||||||||||||||||||||||
Nuclear | |||||||||||||||||||||||||||
18 | 5% | ||||||||||||||||||||||||||
16 | 2018 | ||||||||||||||||||||||||||
14 | Natural gas | ||||||||||||||||||||||||||
23% | |||||||||||||||||||||||||||
12 | Oil | ||||||||||||||||||||||||||
31% | |||||||||||||||||||||||||||
10 | |||||||||||||||||||||||||||
8 | |||||||||||||||||||||||||||
6 | Renewables | Coal | |||||||||||||||||||||||||
21% | 21% | ||||||||||||||||||||||||||
4 | Nuclear | ||||||||||||||||||||||||||
2 | 5% | ||||||||||||||||||||||||||
2040 | |||||||||||||||||||||||||||
0 | Oil | ||||||||||||||||||||||||||
2018 | 2025 | 2030 | 2035 | 2040 | |||||||||||||||||||||||
Natural gas | 28% | ||||||||||||||||||||||||||
Coal | Oil | Natural gas | Nuclear | Renewables | 25% | ||||||||||||||||||||||
"Shale output from the United States is set to stay higher for longer than previously projected, reshaping global markets, trade flows and security. In the Stated Policies Scenario, annual US production growth slows from the breakneck pace seen in recent years, but the United States still accounts for 85% of the increase in global oil production to 2030, and for 30% of the increase in gas."
Hydrocarbons continue to fuel our global society for decades, with increased demand for natural gas
Source: International Energy Agency, World Energy Outlook 2019, Stated Policies Scenario | 24 |
Highlights from the Inaugural DCP Midstream Sustainability Report
DCP is committed to safety, social responsibility, diversity, environmental leadership, operational excellence, and ethical business practices to ensure the decisions we make today are also the right decisions for the future.
Our Purpose & Vision
Our Purpose: Building Connections to Enable Better Lives
Our Vision: To be the safest, most reliable, low-cost midstream service provider
Our purpose is the lens through which we assess every decision, every action, and every strategy. From creating the feedstock used for thousands of products and warming our homes, to fueling our transportation systems and providing reliable and affordable energy access, we play a critical role in the energy value chain that drives our society. To achieve our purpose, we must sustainably execute our vision.
Midstream EHS Leader
The safety of our employees, contractors, and communities is top of mind in everything we do, every day, and is prioritized at all levels of the organization as our top value.
Read our full report at:
DCPMidstream.com/Sustainability
2018 & 2019 | 2020 GPA | 2020 GPA | 2019 GPA |
recordable injury | Midstream | Midstream | Midstream |
rates represent | Association | Association | Association |
best safety | Energy | Environmental | Division I |
records in | Conservation | Excellence Award | Safety Award |
company history | Award | 25 | |
DCP 2.0 Transformation
We are leading the industry in innovation and digital adoption with a focus on transformation through people, process, and technology. Highlights include:
Integrated Collaboration Center (ICC)
Enhancing our digitized central nervous system which processes seven billion data points daily to fully optimize our operations
Remote Operations at 24 Facilities
Resulting in volume, reliability, and recovery improvements
DCP Technology Ventures
Working with start-ups to help develop groundbreaking energy technologies that improve safety, efficiency, and sustainability
Decision Support System (DSS)
Utilizing software that allows the company's real-time operational statistics to be available to every employee
Environmental Management
We recognize our critical responsibility to provide safe, affordable, reliable energy, while reducing our contribution to, and mitigating the impacts of climate change. In addition to strong environmental compliance and reporting, our efforts include:
- Monitoring our facilities with innovative technologies, such as infrared cameras to find and repairs leaks
- Participating in iPIPE, a nationally recognized coalition focused on leak detection and prevention
- Actively supporting nationwide Ecosystem Conservation Partnerships
- Supporting public awareness programs on pipeline safety
- Implementing regular emergency management training and asset drills
Culture & Community
We take pride in our dedicated efforts to create a safe, vibrant culture that enables and provides opportunities for our employees and communities to thrive.
- Established Cultural Hallmarks: Trust, Connect, Inspire, Solve, and Achieve
-
Supporting a variety of internal employee groups, including: Young Professionals Network, DCP
Veterans, the Leadership Development Network, and the Business Women's Network - Formed Community Connections Committee to drive local engagement, directing over $75,000 to new, grassroots charitable efforts in 2019
- Raised and contributed over $1.4 million for nonprofit causes in 2019
- Top national corporate fundraiser for 2018 American Heart Association (AHA) Heart Walk, with nearly $9 million contributed to the AHA since 2007
- Recognized as a Forbes Best Midsize Employer for 2018 and 2019
Governance
The Board of Directors and our Executive Committee are committed to ethical business practices and effective risk and performance management.
- The Audit Committee, comprised of all independent directors, assists the Board in oversight of financial statements, audits, legal, and regulatory compliance
- Eliminated Incentive Distribution Rights in 2019, exemplifying our owners' support and positioning DCP and all stakeholders for long-term success
- Relevant to sustainability, we have identified our material issues, risks, and opportunities for our business and put a governance structure in place that includes an Sustainability Council. We have set ambitions for continuous transparency and accountability and we look forward to discussing our
progress | 26 | 26 |
Non-GAAP Reconciliations
27
Non-GAAP Reconciliations
** We define adjusted gross margin as total operating revenues, less purchases and related costs, and we define segment adjusted gross margin for each segment | |
as total operating revenues for that segment less purchases and related costs for that segment. Our adjusted gross margin equals the sum of our segment adjusted | |
gross margins. Adjusted gross margin and segment adjusted gross margin are primary performance measures used by management, as these measures represent | |
the results of product sales and purchases, a key component of our operations. As an indicator of our operating performance, adjusted gross margin and segment | 28 |
adjusted gross margin should not be considered an alternative to, or more meaningful than, operating revenues, gross margin, segment gross margin, net income or |
loss, net income or loss attributable to partners, operating income, net cash provided by operating activities or any other measure of financial performance presented
in accordance with GAAP. | 28 |
Non-GAAP Reconciliations
29
29
Non-GAAP Reconciliations
30
30
Non-GAAP Reconciliations
31
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DCP Midstream LP published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 12:04:02 UTC