DCP Midstream, LP (DCP) Misses Q4 EPS by 43c, Revenues Miss

DCP Midstream, LP (NYSE: DCP) reported Q4 EPS of ($0.08), $0.43 worse than the analyst estimate of $0.35. Revenue for the quarter came in at $1.93 billion versus the consensus estimate of $2.41 billion.

HIGHLIGHTS

• Net income attributable to partners of $1 million and $17 million for the quarter and year ended December 31, 2019, respectively.
• Distributable cash flow (DCF) of $175 million and $762 million for the quarter and year ended December 31, 2019, resulting in a paid distribution coverage ratio of 1.13 times and 1.23 times, respectively. Annual DCF increased approximately 11% year-over-year.
• Adjusted EBITDA of $296 million and $1,200 million for the quarter and year ended December 31, 2019, respectively. Annual Adjusted EBITDA increased approximately 10% year-over-year.
• Annual Logistics and Marketing Adjusted EBITDA increased approximately 29% year-over-year, driven by increased margin from Sand Hills, Guadalupe, and Gulf Coast Express.
• Increased overall wellhead volumes from the fourth quarter of 2018 to the fourth quarter of 2019, including an approximate 20% increase in DJ Basin volumes and an approximate 19% increase in Permian Basin volumes.
• Extended Southern Hills into the DJ Basin via the White Cliffs pipeline conversion in the fourth quarter, adding 90 MBbls/d of NGL takeaway capacity.
• Placed the 100 MMcf/d DJ Basin O'Connor 2 bypass in service, bringing total processing, offload, and bypass capacity in the basin to over 1.4 Bcf/d.
• Executed a total of $54 million in asset sales in the fourth quarter, resulting in $209 million in total 2019 asset sale proceeds.

CEO'S PERSPECTIVE

“2019 was a pivotal year for DCP, with more than half of our earnings now generated by our Logistics and Marketing segment and the elimination of our Incentive Distribution Rights," said Wouter van Kempen, chairman, president, and CEO. “In 2020 we will complete our final tranche of a multi-year capital growth program, which gives us clear line of sight to a fully self-funded model in 2021."

For earnings history and earnings-related data on DCP Midstream, LP (DCP) click here.

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