Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Midcoast Energy Partners, L.P. | v451588_ex99-1.htm |
| 8-K - 8-K - Midcoast Energy Partners, L.P. | v451588_8k.htm |
Exhibit 99.2
MIDCOAST ENERGY PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF INCOME
| For the three months | For the nine months | |||||||||||||||
| ended September 30, | ended September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (unaudited; in millions, except per unit amounts) | ||||||||||||||||
| Operating revenues: | ||||||||||||||||
| Commodity sales | $ | 440.7 | $ | 597.8 | $ | 1,197.9 | $ | 2,101.3 | ||||||||
| Commodity sales - affiliate | 1.3 | 12.0 | 7.9 | 62.3 | ||||||||||||
| Transportation and other services | 44.0 | 51.2 | 139.7 | 151.0 | ||||||||||||
| 486.0 | 661.0 | 1,345.5 | 2,314.6 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of natural gas and natural gas liquids | 396.1 | 503.3 | 1,082.0 | 1,912.0 | ||||||||||||
| Cost of natural gas and natural gas liquids - affiliate | 7.9 | 19.4 | 29.1 | 60.4 | ||||||||||||
| Operating and maintenance | 34.8 | 48.8 | 105.7 | 131.7 | ||||||||||||
| Operating and maintenance -affiliate | 20.1 | 25.2 | 68.3 | 75.2 | ||||||||||||
| General and administrative | 1.8 | 1.6 | 5.7 | 4.6 | ||||||||||||
| General and administrative - affiliate | 16.4 | 19.6 | 45.0 | 56.5 | ||||||||||||
| Goodwill impairment | - | - | - | 226.5 | ||||||||||||
| Asset impairment | - | - | 10.6 | 12.3 | ||||||||||||
| Depreciation and amortization | 39.2 | 39.2 | 118.7 | 118.3 | ||||||||||||
| 516.3 | 657.1 | 1,465.1 | 2,597.5 | |||||||||||||
| Operating income (loss) | (30.3 | ) | 3.9 | (119.6 | ) | (282.9 | ) | |||||||||
| Interest expense, net | (8.5 | ) | (7.6 | ) | (25.0 | ) | (21.5 | ) | ||||||||
| Equity in earnings of joint ventures | 8.3 | 8.9 | 22.0 | 20.5 | ||||||||||||
| Other income (loss) | 0.1 | (0.4 | ) | 0.3 | (0.2 | ) | ||||||||||
| Income (loss) before income tax expense | (30.4 | ) | 4.8 | (122.3 | ) | (284.1 | ) | |||||||||
| Income tax expense | (0.7 | ) | (3.7 | ) | (2.1 | ) | (1.4 | ) | ||||||||
| Net income (loss) | (31.1 | ) | 1.1 | (124.4 | ) | (285.5 | ) | |||||||||
| Less: Net income (loss) attributable to noncontrolling interest | (10.4 | ) | 4.7 | (46.7 | ) | (125.4 | ) | |||||||||
| Net loss attributable to general and limited partner ownership | ||||||||||||||||
| interest in Midcoast Energy Partners, L.P. | $ | (20.7 | ) | $ | (3.6 | ) | $ | (77.7 | ) | $ | (160.1 | ) | ||||
| Net loss attributable to limited partner ownership interest | $ | (20.3 | ) | $ | (3.5 | ) | $ | (76.1 | ) | $ | (156.8 | ) | ||||
| Net loss per limited partner unit (basic and diluted) | $ | (0.45 | ) | $ | (0.08 | ) | $ | (1.68 | ) | $ | (3.47 | ) | ||||
| Weighted-average limited partner units outstanding | 45.2 | 45.2 | 45.2 | 45.2 | ||||||||||||
| 1 |
MIDCOAST ENERGY PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the nine months | ||||||||
| ended September 30, | ||||||||
| 2016 | 2015 | |||||||
| (unaudited; in millions) | ||||||||
| Cash provided by operating activities: | ||||||||
| Net loss | $ | (124.4 | ) | $ | (285.5 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 118.7 | 118.3 | ||||||
| Goodwill impairment | - | 226.5 | ||||||
| Derivative fair value net losses | 87.5 | 53.5 | ||||||
| Inventory market price adjustments | - | 5.4 | ||||||
| Asset impairment | 10.6 | 12.3 | ||||||
| Distributions from investment in joint ventures | 22.0 | 20.5 | ||||||
| Equity earnings from investment in joint ventures | (22.0 | ) | (20.5 | ) | ||||
| Loss on sales of assets | 1.6 | 3.2 | ||||||
| Other | (1.4 | ) | 2.6 | |||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||
| Receivables, trade and other | 8.4 | 13.9 | ||||||
| Due from General Partner and affiliates | 51.5 | 38.7 | ||||||
| Accrued receivables | 25.1 | 200.6 | ||||||
| Inventory | (31.5 | ) | (9.8 | ) | ||||
| Current and long-term other assets | (10.8 | ) | 1.8 | |||||
| Due to General Partner and affiliates | 33.8 | 13.3 | ||||||
| Accounts payable and other | (25.0 | ) | (20.6 | ) | ||||
| Accrued purchases | (7.5 | ) | (177.2 | ) | ||||
| Interest payable | (3.7 | ) | (3.8 | ) | ||||
| Property and other taxes payable | 7.0 | 5.4 | ||||||
| Net cash provided by operating activities | 139.9 | 198.6 | ||||||
| Cash used in investing activities: | ||||||||
| Additions to property, plant and equipment | (52.8 | ) | (155.4 | ) | ||||
| Changes in restricted cash | 10.9 | 32.1 | ||||||
| Acquisitions | - | (43.9 | ) | |||||
| Proceeds from sales of assets | 13.6 | 2.1 | ||||||
| Investment in joint ventures | - | (3.0 | ) | |||||
| Distributions from investment in joint ventures in excess of cumulative earnings | 12.3 | 9.5 | ||||||
| Other | (1.2 | ) | (1.6 | ) | ||||
| Net cash used in investing activities | (17.2 | ) | (160.2 | ) | ||||
| Cash used in financing activities: | ||||||||
| Net borrowings (repayments) under credit facility | (40.0 | ) | 60.0 | |||||
| Distributions to partners | (49.5 | ) | (48.1 | ) | ||||
| Contributions from General Partner | 9.5 | - | ||||||
| Contributions from noncontrolling interest | 7.3 | 37.3 | ||||||
| Distributions to noncontrolling interest | (68.0 | ) | (72.0 | ) | ||||
| Net cash used in financing activities | (140.7 | ) | (22.8 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | (18.0 | ) | 15.6 | |||||
| Cash and cash equivalents at beginning of year | 18.0 | - | ||||||
| Cash and cash equivalents at end of period | $ | - | $ | 15.6 | ||||
| 2 |
MIDCOAST ENERGY PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| September 30, | December 31, | |||||||
| 2016 | 2015 | |||||||
| ASSETS | (unaudited; in millions) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | - | $ | 18.0 | ||||
| Restricted cash | 6.7 | 20.6 | ||||||
| Receivables, trade and other, net of allowance for doubtful accounts of $2.3 million | ||||||||
| and $2.5 million at September 30, 2016 and December 31, 2015, respectively | 4.7 | 13.3 | ||||||
| Due from General Partner and affiliates | 3.8 | 47.0 | ||||||
| Accrued receivables | 31.0 | 56.1 | ||||||
| Inventory | 63.2 | 31.9 | ||||||
| Other current assets | 64.9 | 118.5 | ||||||
| 174.3 | 305.4 | |||||||
| Property, plant and equipment, net | 4,133.0 | 4,226.3 | ||||||
| Intangible assets, net | 256.9 | 272.9 | ||||||
| Equity investment in joint ventures | 359.6 | 372.3 | ||||||
| Other assets, net | 57.9 | 95.2 | ||||||
| Total assets | $ | 4,981.7 | $ | 5,272.1 | ||||
| LIABILITIES AND PARTNERS’ CAPITAL | ||||||||
| Current liabilities: | ||||||||
| Due to General Partner and affiliates | $ | 60.7 | $ | 45.7 | ||||
| Accounts payable and other | 55.8 | 92.6 | ||||||
| Accrued purchases | 136.3 | 143.8 | ||||||
| Property and other taxes payable | 25.4 | 18.4 | ||||||
| Interest payable | 1.5 | 5.2 | ||||||
| 279.7 | 305.7 | |||||||
| Long-term debt | 848.5 | 888.2 | ||||||
| Other long-term liabilities | 27.6 | 45.9 | ||||||
| Total liabilities | 1,155.8 | 1,239.8 | ||||||
| Commitments and contingencies | ||||||||
| Partners’ capital: | ||||||||
| Class A common units (22,610,056 authorized and issued at September 30, 2016 and | ||||||||
| December 31,2015) | 459.9 | 522.2 | ||||||
| Subordinated units (22,610,056 authorized and issued at September 30, 2016 and | ||||||||
| December 31, 2015) | 999.7 | 1,062.0 | ||||||
| General Partner units (922,859 authorized and issued at September 30, 2016 and | ||||||||
| December 31, 2015) | 50.2 | 43.3 | ||||||
| Accumulated other comprehensive loss | (0.9 | ) | (0.9 | ) | ||||
| Total Midcoast Energy Partners, L.P. partners’ capital | 1,508.9 | 1,626.6 | ||||||
| Noncontrolling interest | 2,317.0 | 2,405.7 | ||||||
| Total partners’ capital | 3,825.9 | 4,032.3 | ||||||
| $ | 4,981.7 | $ | 5,272.1 | |||||
| 3 |
NET INCOME PER LIMITED PARTNER AND GENERAL PARTNER INTEREST
We allocate our net income among our General Partner and limited partners using the two-class method. Under the two-class method, we allocate our net income, including any earnings in excess of distributions, to our limited partners, our General Partner and the holders of our IDRs in accordance with the terms of our partnership agreement. We allocate any distributions in excess of earnings for the period to our General Partner and our limited partners based on their respective proportionate ownership interests in us, after taking into account distributions to be paid with respect to the IDRs, as set forth in our partnership agreement.
| Distribution Targets | Portion of Quarterly Distribution Per Unit | Percentage Distributed to Limited Partners | Percentage Distributed to General Partner | |||
| Minimum Quarterly Distribution | Up to $0.3125 | 98% | 2% | |||
| First Target Distribution | > $0.3125 to $0.359375 | 98% | 2% | |||
| Second Target Distribution | > $0.359375 to $0.390625 | 85% | 15% | |||
| Third Target Distribution | > $0.390625 to $0.468750 | 75% | 25% | |||
| Over Third Target Distribution | In excess of $0.468750 | 50% | 50% |
We determined basic and diluted net loss per limited partner unit as follows:
| For the three months | For the nine months | |||||||||||||||
| ended September 30, | ended September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (in millions, except per unit amounts) | ||||||||||||||||
| Net income (loss) | $ | (31.1 | ) | $ | 1.1 | $ | (124.4 | ) | $ | (285.5 | ) | |||||
| Less: Net income (loss) attributable to noncontrolling interest | (10.4 | ) | 4.7 | (46.7 | ) | (125.4 | ) | |||||||||
| Net loss attributable to general and limited partner | ||||||||||||||||
| interests in Midcoast Energy Partners, L.P. | (20.7 | ) | (3.6 | ) | (77.7 | ) | (160.1 | ) | ||||||||
| Distributions: | ||||||||||||||||
| Total distributed earnings to our General Partner | (0.3 | ) | (0.3 | ) | (0.9 | ) | (0.9 | ) | ||||||||
| Total distributed earnings to our limited partners | (16.2 | ) | (16.2 | ) | (48.6 | ) | (47.9 | ) | ||||||||
| Total distributed earnings | (16.5 | ) | (16.5 | ) | (49.5 | ) | (48.8 | ) | ||||||||
| Overdistributed earnings | $ | (37.2 | ) | $ | (20.1 | ) | $ | (127.2 | ) | $ | (208.9 | ) | ||||
| Weighted-average limited partner units outstanding | 45.2 | 45.2 | 45.2 | 45.2 | ||||||||||||
| Basic and diluted earnings per unit: | ||||||||||||||||
| Distributed earnings per limited partner unit (1) | $ | 0.36 | $ | 0.36 | $ | 1.08 | $ | 1.06 | ||||||||
| Overdistributed earnings per limited partner unit (2) | (0.81 | ) | (0.44 | ) | (2.76 | ) | (4.53 | ) | ||||||||
| Net loss per limited partner unit (basic and diluted) | $ | (0.45 | ) | $ | (0.08 | ) | $ | (1.68 | ) | $ | (3.47 | ) | ||||
__________________
| (1) | Represents the total distributed earnings to limited partners divided by the weighted-average number of limited partner interests outstanding for the period. |
| (2) | Represents the limited partners' share (98%) of distributions in excess of earnings divided by the weighted-average number of limited partner interests outstanding for the period and underdistributed earnings allocated to the limited partners based on the distribution waterfall that is outlined in our partnership agreement. |
| 4 |
SEGMENT INFORMATION
Our business is divided into operating segments, defined as components of the enterprise, about which financial information is available and evaluated regularly by our Chief Operating Decision Maker, collectively comprised of our senior management, in deciding how resources are allocated and performance is assessed.
Each of our reportable segments is a business unit that offers different services and products that are managed separately, since each business segment requires different operating strategies. We conduct our business through two distinct reporting segments:
| • | Gathering, Processing and Transportation; and | |
| • | Logistics and Marketing. |
The following tables present certain financial information relating to our business segments and corporate activities:
| For the three months ended September 30, 2016 | ||||||||||||||||
| Gathering, Processing and Transportation | Logistics and Marketing | Corporate (1) | Total | |||||||||||||
| (in millions) | ||||||||||||||||
| Total revenue | $ | 302.3 | $ | 261.0 | $ | - | $ | 563.3 | ||||||||
| Less: Intersegment revenue | 75.1 | 2.2 | - | 77.3 | ||||||||||||
| Operating revenue | 227.2 | 258.8 | - | 486.0 | ||||||||||||
| Cost of natural gas and natural gas liquids | 154.1 | 249.9 | - | 404.0 | ||||||||||||
| Segment gross margin | 73.1 | 8.9 | - | 82.0 | ||||||||||||
| Operating and maintenance | 45.4 | 9.3 | 0.2 | 54.9 | ||||||||||||
| General and administrative | 15.6 | 1.4 | 1.2 | 18.2 | ||||||||||||
| Depreciation and amortization | 38.1 | 1.1 | - | 39.2 | ||||||||||||
| 99.1 | 11.8 | 1.4 | 112.3 | |||||||||||||
| Operating loss | (26.0 | ) | (2.9 | ) | (1.4 | ) | (30.3 | ) | ||||||||
| Interest expense, net | - | - | (8.5 | ) | (8.5 | ) | ||||||||||
| Other income | 8.3 | (2) | - | 0.1 | 8.4 | |||||||||||
| Loss before income tax expense | (17.7 | ) | (2.9 | ) | (9.8 | ) | (30.4 | ) | ||||||||
| Income tax expense | - | - | (0.7 | ) | (0.7 | ) | ||||||||||
| Net loss | $ | (17.7 | ) | $ | (2.9 | ) | $ | (10.5 | ) | $ | (31.1 | ) | ||||
| Less: Net loss attributable to noncontrolling interest | - | - | (10.4 | ) | (10.4 | ) | ||||||||||
| Net loss attributable to general and limited partner | ||||||||||||||||
| ownership interests in Midcoast Energy Partners, L.P. | $ | (17.7 | ) | $ | (2.9 | ) | $ | (0.1 | ) | $ | (20.7 | ) | ||||
______________________________
| (1) | Corporate consists of interest expense, noncontrolling interest and other costs such as income taxes, which are not allocated to the business segments. |
| (2) | Other income for our Gathering, Processing and Transportation segment includes our equity investment in the Texas Express NGL system. |
| 5 |
| For the three months ended September 30, 2015 | ||||||||||||||||
| Gathering, Processing and Transportation | Logistics and Marketing | Corporate (1) | Total | |||||||||||||
| (in millions) | ||||||||||||||||
| Total revenue | $ | 357.7 | $ | 520.8 | $ | - | $ | 878.5 | ||||||||
| Less: Intersegment revenue | 214.3 | 3.2 | - | 217.5 | ||||||||||||
| Operating revenue | 143.4 | 517.6 | - | 661.0 | ||||||||||||
| Cost of natural gas and natural gas liquids | 16.7 | 506.0 | - | 522.7 | ||||||||||||
| Segment gross margin | 126.7 | 11.6 | - | 138.3 | ||||||||||||
| Operating and maintenance | 55.7 | 18.2 | 0.1 | 74.0 | ||||||||||||
| General and administrative | 17.2 | 3.0 | 1.0 | 21.2 | ||||||||||||
| Depreciation and amortization | 37.1 | 2.1 | - | 39.2 | ||||||||||||
| 110.0 | 23.3 | 1.1 | 134.4 | |||||||||||||
| Operating income (loss) | 16.7 | (11.7 | ) | (1.1 | ) | 3.9 | ||||||||||
| Interest expense, net | - | - | (7.6 | ) | (7.6 | ) | ||||||||||
| Other income (loss) | 8.9 | (2) | - | (0.4 | ) | 8.5 | ||||||||||
| Income (loss) before income tax expense | 25.6 | (11.7 | ) | (9.1 | ) | 4.8 | ||||||||||
| Income tax expense | - | - | (3.7 | ) | (3.7 | ) | ||||||||||
| Net income (loss) | $ | 25.6 | $ | (11.7 | ) | $ | (12.8 | ) | $ | 1.1 | ||||||
| Less: Net income attributable to noncontrolling interest | - | - | 4.7 | 4.7 | ||||||||||||
| Net income (loss) attributable to general and limited partner | ||||||||||||||||
| ownership interests in Midcoast Energy Partners, L.P. | $ | 25.6 | $ | (11.7 | ) | $ | (17.5 | ) | $ | (3.6 | ) | |||||
_____________________________
| (1) | Corporate consists of interest expense, noncontrolling interest and other costs such as income taxes, which are not allocated to the business segments. |
| (2) | Other income for our Gathering, Processing and Transportation segment includes our equity investment in the Texas Express NGL system. |
| As of and for the nine months ended September 30, 2016 | ||||||||||||||||
| Gathering, Processing and Transportation | Logistics and Marketing | Corporate (1) | Total | |||||||||||||
| (in millions) | ||||||||||||||||
| Total revenue | $ | 814.5 | $ | 761.6 | $ | - | $ | 1,576.1 | ||||||||
| Less: Intersegment revenue | 214.6 | 16.0 | - | 230.6 | ||||||||||||
| Operating revenue | 599.9 | 745.6 | - | 1,345.5 | ||||||||||||
| Cost of natural gas and natural gas liquids | 393.8 | 717.3 | - | 1,111.1 | ||||||||||||
| Segment gross margin | 206.1 | 28.3 | - | 234.4 | ||||||||||||
| Operating and maintenance | 144.6 | 29.1 | 0.3 | 174.0 | ||||||||||||
| General and administrative | 43.4 | 4.2 | 3.1 | 50.7 | ||||||||||||
| Asset impairment | - | 10.6 | - | 10.6 | ||||||||||||
| Depreciation and amortization | 114.0 | 4.7 | - | 118.7 | ||||||||||||
| 302.0 | 48.6 | 3.4 | 354.0 | |||||||||||||
| Operating loss | (95.9 | ) | (20.3 | ) | (3.4 | ) | (119.6 | ) | ||||||||
| Interest expense, net | - | - | (25.0 | ) | (25.0 | ) | ||||||||||
| Other income | 22.0 | (2) | - | 0.3 | 22.3 | |||||||||||
| Loss before income tax expense | (73.9 | ) | (20.3 | ) | (28.1 | ) | (122.3 | ) | ||||||||
| Income tax expense | - | - | (2.1 | ) | (2.1 | ) | ||||||||||
| Net loss | (73.9 | ) | (20.3 | ) | (30.2 | ) | (124.4 | ) | ||||||||
| Less: Net loss attributable to noncontrolling interest | - | - | (46.7 | ) | (46.7 | ) | ||||||||||
| Net income (loss) attributable to general and limited partner | ||||||||||||||||
| ownership interests in Midcoast Energy Partners, L.P. | $ | (73.9 | ) | $ | (20.3 | ) | $ | 16.5 | $ | (77.7 | ) | |||||
| Total assets | $ | 4,754.9 | (3) | $ | 178.8 | $ | 48.0 | $ | 4,981.7 | |||||||
| Capital expenditures (excluding acquisitions) | $ | 37.5 | $ | 2.6 | $ | 1.1 | $ | 41.2 | ||||||||
______________________________
| (1) | Corporate consists of interest expense, noncontrolling interest and other costs such as income taxes, which are not allocated to the business segments. |
| (2) | Other income for our Gathering, Processing and Transportation segment includes our equity investment in the Texas Express NGL system. |
| (3) | Total assets for our Gathering, Processing and Transportation segment includes $359.6 million for our equity investment in the Texas Express NGL system. |
| 6 |
| As of and for the nine months ended September 30, 2015 | ||||||||||||||||
| Gathering, Processing and Transportation | Logistics and Marketing | Corporate (1) | Total | |||||||||||||
| (in millions) | ||||||||||||||||
| Total revenue | $ | 1,144.5 | $ | 1,975.3 | $ | - | $ | 3,119.8 | ||||||||
| Less: Intersegment revenue | 776.9 | 28.3 | - | 805.2 | ||||||||||||
| Operating revenue | 367.6 | 1,947.0 | - | 2,314.6 | ||||||||||||
| Cost of natural gas and natural gas liquids | 58.5 | 1,913.9 | - | 1,972.4 | ||||||||||||
| Segment gross margin | 309.1 | 33.1 | - | 342.2 | ||||||||||||
| Operating and maintenance | 161.5 | 45.1 | 0.3 | 206.9 | ||||||||||||
| General and administrative | 48.5 | 9.0 | 3.6 | 61.1 | ||||||||||||
| Goodwill impairment | 206.1 | 20.4 | - | 226.5 | ||||||||||||
| Asset impairment | - | 12.3 | - | 12.3 | ||||||||||||
| Depreciation and amortization | 112.0 | 6.3 | - | 118.3 | ||||||||||||
| 528.1 | 93.1 | 3.9 | 625.1 | |||||||||||||
| Operating loss | (219.0 | ) | (60.0 | ) | (3.9 | ) | (282.9 | ) | ||||||||
| Interest expense, net | - | - | (21.5 | ) | (21.5 | ) | ||||||||||
| Other income (loss) | 20.5 | (2) | - | (0.2 | ) | 20.3 | ||||||||||
| Loss before income tax benefit | (198.5 | ) | (60.0 | ) | (25.6 | ) | (284.1 | ) | ||||||||
| Income tax expense | - | - | (1.4 | ) | (1.4 | ) | ||||||||||
| Net loss | (198.5 | ) | (60.0 | ) | (27.0 | ) | (285.5 | ) | ||||||||
| Less: Net loss attributable to noncontrolling interest | - | - | (125.4 | ) | (125.4 | ) | ||||||||||
| Net income (loss) attributable to general and limited partner | ||||||||||||||||
| ownership interests in Midcoast Energy Partners, L.P. | $ | (198.5 | ) | $ | (60.0 | ) | $ | 98.4 | $ | (160.1 | ) | |||||
| Total assets | $ | 4,983.0 | (3) | $ | 210.2 | $ | 97.8 | $ | 5,291.0 | |||||||
| Capital expenditures (excluding acquisitions) | $ | 132.8 | $ | 11.0 | $ | 3.6 | $ | 147.4 | ||||||||
______________________________
| (1) | Corporate consists of interest expense, noncontrolling interest and other costs such as income taxes, which are not allocated to the business segments. |
| (2) | Other income for our Gathering, Processing and Transportation segment includes our equity investment in the Texas Express NGL system. |
| (3) | Total assets for our Gathering, Processing and Transportation segment includes $373.7 million for our equity investment in the Texas Express NGL system. |
| 7 |