DCP Midstream Partners Reports Second Quarter 2012 Results
- Second quarter 2012 financial results in line with 2012 forecast
- Quarterly distribution increase in line with 2012 distribution growth forecast
-
Second quarter results reflect a
$14.5 million non-cash inventory write-down -
Completed
$200 million drop down fromDCP Midstream of two non-operatedMont Belvieu fractionators -
Completed
$63 million acquisition of Crossroads system in EastTexas fromPenn Virginia Resource Partners, L.P.
SECOND QUARTER AND YEAR TO DATE SUMMARY RESULTS
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, (2) |
June 30, (2) |
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2012 (3) |
2011 (3) |
As |
2012 (3) |
2011 (3) |
As |
||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(Millions, except per unit amounts) | |||||||||||||||||||||
Net income attributable to partners | $ | 79.1 | $ | 47.7 | $ | 41.5 | $ | 102.4 | $ | 47.7 | $ | 35.6 | |||||||||
Net income per limited partner unit - basic and diluted | $ | 1.33 | $ | 0.80 | $ | 0.80 | $ | 1.64 | $ | 0.56 | $ | 0.56 | |||||||||
Adjusted EBITDA(1) | $ | 35.1 | $ | 55.0 | $ | 45.0 | $ | 118.6 | $ | 118.9 | $ | 97.3 | |||||||||
Adjusted net income attributable to partners(1) | $ | 13.9 | $ | 25.6 | $ | 20.5 | $ | 61.0 | $ | 60.7 | $ | 48.5 | |||||||||
Adjusted net income per limited partner unit(1) - basic and diluted | $ | 0.08 | $ | 0.30 | $ | 0.33 | $ | 0.81 | $ | 0.86 | $ | 0.86 | |||||||||
Distributable cash flow(1) | $ | 21.9 | ** | $ | 39.0 | $ | 76.9 | ** | $ | 85.4 |
(1) | Denotes a financial measure not presented in accordance with U.S. generally accepted accounting principles, or GAAP. 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 measures under “Reconciliation of Non-GAAP Financial Measures” below. | |
(2) | In March 2012, the Partnership completed the contribution from DCP Midstream, LLC (“DCP Midstream”) of the remaining 66.7 percent interest in DCP Southeast Texas Holdings, GP, in a transaction between entities under common control. This transfer of net assets between entities under common control was accounted for as if the transaction had occurred at the beginning of the period, and prior years were retrospectively adjusted to furnish comparative information similar to the pooling method. In addition, results are presented as originally reported in 2011 for comparative purposes. | |
(3) |
We recognized $14.5 million and $19.1 million in non-cash lower of cost or market adjustments during the three and six months ended June 30, 2012, respectively. We recognized $0.6 million in non-cash lower of cost or market adjustments during the six months ended June 30, 2011 and no lower of cost or market adjustments for the three months ended June 30, 2011. |
|
** | Distributable cash flow has not been calculated under the pooling method. | |
SECOND QUARTER HIGHLIGHTS
-
Effective
July 2, 2012 , we completed the previously announced$200 million drop down of two non-operatedMont Belvieu fractionators from our general partner,DCP Midstream . The completion of this transaction will provide significant fee-based margins. -
Effective
July 3, 2012 , we acquired the Crossroads system fromPenn Virginia Resource Partners, L.P. for$63 million . Underpinned by fee-based margins, the Crossroads system located in the southeastern portion ofHarrison county inEast Texas includes an 80 million cubic feet per day cryogenic processing plant and related facilities. -
Our capital projects for the construction of our natural gas
processing plant in the Eagle Ford shale and our
Keathley Canyon expansion project at Discovery are progressing on plan. -
We raised
$177 million of equity through a private placement, which positions us well in terms of both liquidity and cost of capital to support our growth outlook, including co-investment opportunities with our general partner.
CEO PERSPECTIVE
“Despite weakness in NGL markets, year to date financial results and
distribution growth were in line with our 2012 forecast”, said
CONSOLIDATED FINANCIAL RESULTS
Adjusted EBITDA for the three months ended
On
OPERATING RESULTS BY BUSINESS SEGMENT
Adjusted segment EBITDA increased to
Results for 2011 are shown using the required pooling method of
accounting, which include 100% of
NGL Logistics — Adjusted segment EBITDA increased to
Adjusted segment EBITDA increased to
Wholesale Propane Logistics — Adjusted segment EBITDA decreased
to
Adjusted segment EBITDA decreased to
CORPORATE AND OTHER
Decreased depreciation and amortization expense for the three and six
months ended
CAPITALIZATION
At
COMMODITY DERIVATIVE ACTIVITY
The objective of our commodity risk management program is to protect downside risk in our distributable cash flow. We utilize mark-to-market accounting treatment for our commodity derivative instruments. Mark-to-market accounting rules require companies to record currently in earnings the difference between their contracted future derivative settlement prices and the forward prices of the underlying commodities at the end of the accounting period. Revaluing our commodity derivative instruments based on futures pricing at the end of the period creates an asset or liability and associated non-cash gain or loss. Realized gains or losses from cash settlement of the derivative contracts occur monthly as our physical commodity sales are realized or when we rebalance our portfolio. Non-cash gains or losses associated with the mark-to-market accounting treatment of our commodity derivative instruments do not affect our distributable cash flow.
For the three months ended
EARNINGS CALL
NON-GAAP FINANCIAL INFORMATION
This press release and the accompanying financial schedules include the following non-GAAP financial measures: distributable cash flow, adjusted EBITDA, adjusted segment EBITDA, adjusted net income attributable to partners, and adjusted net income per unit. The accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures. Our non-GAAP financial measures should not be considered in isolation or as an alternative to our financial measures presented in accordance with GAAP, including net income or loss attributable to partners, net cash provided by or used in operating activities or any other measure of liquidity or financial performance presented in accordance with GAAP as a measure of operating performance, liquidity or ability to service debt obligations and make cash distributions to unitholders. The non-GAAP financial measures presented by us may not be comparable to similarly titled measures of other companies because they may not calculate their measures in the same manner.
We define distributable cash flow as net cash provided by or used in operating activities, less maintenance capital expenditures, net of reimbursable projects, plus or minus adjustments for non-cash mark-to-market of derivative instruments, proceeds from divestiture of assets, net income attributable to non-controlling interests net of depreciation and income tax, net changes in operating assets and liabilities, and other adjustments to reconcile net cash provided by or used in operating activities. Historical distributable cash flow is calculated excluding the impact of retrospective adjustments related to any acquisitions presented under the pooling method. Maintenance capital expenditures are capital expenditures made where we add on to or improve capital assets owned, or acquire or construct new capital assets, if such expenditures are made to maintain, including over the long term, our operating or earnings capacity. Non-cash mark-to-market of derivative instruments is considered to be non-cash for the purpose of computing distributable cash flow because settlement will not occur until future periods, and will be impacted by future changes in commodity prices. Distributable cash flow is used as a supplemental liquidity and performance measure by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others, to assess our ability to make cash distributions to our unit holders and our general partner.
We define adjusted EBITDA as net income or loss attributable to partners less interest income, noncontrolling interest in depreciation and income tax expense and non-cash commodity derivative gains, plus interest expense, income tax expense, depreciation and amortization expense and non-cash commodity derivative losses. The commodity derivative non-cash losses and gains result from the marking to market of certain financial derivatives used by us for risk management purposes that we do not account for under the hedge method of accounting. These non-cash losses or gains may or may not be realized in future periods when the derivative contracts are settled, due to fluctuating commodity prices. We define adjusted segment EBITDA for each segment as segment net income or loss attributable to partners less non-cash commodity derivative gains for that segment, plus depreciation and amortization expense and non-cash commodity derivative losses for that segment, adjusted for any non-controlling interest on depreciation and amortization expense for that segment. Our adjusted EBITDA equals the sum of our adjusted segment EBITDAs, plus general and administrative expense.
Adjusted EBITDA is used as a supplemental liquidity and performance measure and adjusted segment EBITDA is used as supplemental performance measure by our management and we believe by external users of our financial statements, such as investors, commercial banks, research analysts and others, to assess:
- financial performance of our assets without regard to financing methods, capital structure or historical cost basis;
- our operating performance and return on capital as compared to those of other companies in the midstream energy industry, without regard to financing methods or capital structure;
- viability and performance of acquisitions and capital expenditure projects and the overall rates of return on investment opportunities; and
- performance of our business excluding non-cash commodity derivative gains or losses;
- in the case of Adjusted EBITDA, the ability of our assets to generate cash sufficient to pay interest costs, support our indebtedness, make cash distributions to our unitholders and general partners, and finance maintenance capital expenditures.
We define adjusted net income attributable to partners as net income attributable to partners, plus non-cash derivative losses, less non-cash derivative gains. Adjusted net income per unit is then calculated from adjusted net income attributable to partners. These non-cash derivative losses and gains result from the marking to market of certain financial derivatives used by us for risk management purposes that we do not account for under the hedge method of accounting. Adjusted net income attributable to partners and adjusted net income per unit are provided to illustrate trends in income excluding these non-cash derivative losses or gains, which may or may not be realized in future periods when derivative contracts are settled, due to fluctuating commodity prices.
ABOUT
CAUTIONARY STATEMENTS
This press release may contain or incorporate by reference
forward-looking statements as defined under the federal securities laws
regarding
The key risk factors that may have a direct bearing on the
Partnership’s results of operations and financial condition are
described in detail in the Partnership’s periodic reports most recently
filed with the
DCP MIDSTREAM PARTNERS, LP FINANCIAL RESULTS AND SUMMARY BALANCE SHEET DATA (Unaudited) |
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Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2012 | 2011 |
As |
2012 | 2011 |
As |
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(Millions, except per unit amounts) | ||||||||||||||||||||||||
Sales of natural gas, propane, NGLs and condensate | $ | 296.5 | $ | 521.5 | $ | 323.1 | $ | 783.6 | $ | 1,156.6 | $ | 752.8 | ||||||||||||
Transportation, processing and other | 41.9 | 40.4 | 38.5 | 85.7 | 79.4 | 74.1 | ||||||||||||||||||
Gain (loss) from commodity derivative activity, net | 75.3 | 13.7 | 12.6 | 70.0 | (26.5 | ) | (27.6 | ) | ||||||||||||||||
Total operating revenues | 413.7 | 575.6 | 374.2 | 939.3 | 1,209.5 | 799.3 | ||||||||||||||||||
Purchases of natural gas, propane and NGLs | (274.2 | ) | (453.2 | ) | (274.3 | ) | (705.4 | ) | (1,015.3 | ) | (649.3 | ) | ||||||||||||
Operating and maintenance expense | (29.7 | ) | (26.0 | ) | (21.7 | ) | (56.0 | ) | (54.6 | ) | (45.8 | ) | ||||||||||||
Depreciation and amortization expense | (9.6 | ) | (24.7 | ) | (20.1 | ) | (34.8 | ) | (49.0 | ) | (40.0 | ) | ||||||||||||
General and administrative expense | (11.0 | ) | (11.5 | ) | (8.6 | ) | (22.9 | ) | (23.2 | ) | (17.6 | ) | ||||||||||||
Other income | 0.2 | 0.1 | 0.1 | 0.3 | 0.2 | 0.2 | ||||||||||||||||||
Total operating costs and expenses | (324.3 | ) | (515.3 | ) | (324.6 | ) | (818.8 | ) | (1,141.9 | ) | (752.5 | ) | ||||||||||||
Operating income | 89.4 | 60.3 | 49.6 | 120.5 | 67.6 | 46.8 | ||||||||||||||||||
Interest expense | (11.1 | ) | (8.4 | ) | (8.4 | ) | (23.7 | ) | (16.4 | ) | (16.4 | ) | ||||||||||||
Earnings from unconsolidated affiliates | 2.0 | 5.7 | 10.0 | 7.7 | 10.2 | 18.6 | ||||||||||||||||||
Income tax expense | (0.5 | ) | (0.2 | ) | - | (0.7 | ) | (0.5 | ) | (0.2 | ) | |||||||||||||
Net income attributable to noncontrolling interests | (0.7 | ) | (9.7 | ) | (9.7 | ) | (1.4 | ) | (13.2 | ) | (13.2 | ) | ||||||||||||
Net income attributable to partners | $ | 79.1 | $ | 47.7 | $ | 41.5 | $ | 102.4 | $ | 47.7 | $ | 35.6 | ||||||||||||
Net income attributable to predecessor operations | - | (6.2 | ) | - | (2.6 | ) | (12.1 | ) | - | |||||||||||||||
General partner’s interest in net income | (10.2 | ) | (6.2 | ) | (6.2 | ) | (18.6 | ) | (11.7 | ) | (11.7 | ) | ||||||||||||
Net income allocable to limited partners | $ | 68.9 | $ | 35.3 | $ | 35.3 | $ | 81.2 | $ | 23.9 | $ | 23.9 | ||||||||||||
Net income per limited partner unit—basic and diluted | $ | 1.33 | $ | 0.80 | $ | 0.80 | $ | 1.64 | $ | 0.56 | $ | 0.56 | ||||||||||||
Weighted-average limited partner units outstanding—basic and |
51.9 | 44.2 | 44.2 | 49.4 | 42.7 | 42.7 | ||||||||||||||||||
June 30, | December 31, | As Reported | |||||||
December 31, | |||||||||
2012 | 2011 | 2011 | |||||||
(Millions) | |||||||||
Cash and cash equivalents | 5.5 | 7.6 | 6.7 | ||||||
Other current assets | 249.2 | 346.1 | 233.2 | ||||||
Property, plant and equipment, net | 1,578.7 | 1,499.4 | 1,181.8 | ||||||
Other long-term assets | 500.1 | 424.3 | 481.9 | ||||||
Total assets | $ | 2,333.5 | $ | 2,277.4 | $ | 1,903.6 | |||
Current liabilities | 226.5 | 380.5 | 269.2 | ||||||
Long-term debt | 948.3 | 746.8 | 746.8 | ||||||
Other long-term liabilities | 39.1 | 51.8 | 46.7 | ||||||
Partners’ equity | 1,084.8 | 885.9 | 628.5 | ||||||
Noncontrolling interests | 34.8 | 212.4 | 212.4 | ||||||
Total liabilities and equity | $ | 2,333.5 | $ | 2,277.4 | $ | 1,903.6 | |||
DCP MIDSTREAM PARTNERS, LP |
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Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2012 | 2011 |
As |
2012 | 2011 |
As |
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(Millions, except per unit amounts) | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures: | ||||||||||||||||||||||||||
Net income attributable to partners | $ | 79.1 | $ | 47.7 | $ | 41.5 | $ | 102.4 | $ | 47.7 | $ | 35.6 | ||||||||||||||
Interest expense | 11.1 | 8.4 | 8.4 | 23.7 | 16.4 | 16.4 | ||||||||||||||||||||
Depreciation, amortization and income tax expense, net of |
9.7 | 21.8 | 16.9 | 34.7 | 42.8 | 33.4 | ||||||||||||||||||||
Non-cash commodity derivative mark-to-market | (64.8 | ) | (22.9 | ) | (21.8 | ) | (42.2 | ) | 12.0 | 11.9 | ||||||||||||||||
Adjusted EBITDA | 35.1 | 55.0 | 45.0 | 118.6 | 118.9 | 97.3 | ||||||||||||||||||||
Interest expense | (11.1 | ) | (8.4 | ) | (8.4 | ) | (23.7 | ) | (16.4 | ) | (16.4 | ) | ||||||||||||||
Depreciation, amortization and income tax expense, net of |
(9.7 | ) | (21.8 | ) | (16.9 | ) | (34.7 | ) | (42.8 | ) | (33.4 | ) | ||||||||||||||
Other | (0.4 | ) | 0.8 | 0.8 | 0.8 | 1.0 | 1.0 | |||||||||||||||||||
Adjusted net income attributable to partners | 13.9 | 25.6 | 20.5 | 61.0 | 60.7 | 48.5 | ||||||||||||||||||||
Maintenance capital expenditures, net of reimbursable projects | (4.3 | ) | (2.3 | ) | (7.6 | ) | (4.0 | ) | ||||||||||||||||||
Distributions from unconsolidated affiliates, net of earnings | 0.8 | 2.7 | 0.7 | 5.4 | ||||||||||||||||||||||
Depreciation and amortization, net of noncontrolling interest | 9.1 | 16.8 | 33.9 | 33.2 | ||||||||||||||||||||||
Proceeds from sale of assets, net of noncontrolling interest | 0.1 | - | 0.1 | 0.2 | ||||||||||||||||||||||
Impact of minimum volume receipt for throughput commitment | 1.9 | 1.3 | 3.5 | 2.1 | ||||||||||||||||||||||
Adjustment to remove impact of Southeast Texas pooling | - | - | (17.3 | ) | - | |||||||||||||||||||||
Other | 0.4 | - | 2.6 | - | ||||||||||||||||||||||
Distributable cash flow(1) | $ | 21.9 | $ | 39.0 | $ | 76.9 | $ | 85.4 | ||||||||||||||||||
Adjusted net income attributable to partners | $ | 13.9 | $ | 25.6 | $ | 20.5 | $ | 61.0 | $ | 60.7 | $ | 48.5 | ||||||||||||||
Net income attributable to predecessor operations | - | (6.2 | ) | - | (2.6 | ) | (12.1 | ) | - | |||||||||||||||||
General partner’s interest in net income | (9.9 | ) | (6.0 | ) | (6.0 | ) | (18.4 | ) | (11.8 | ) | (11.8 | ) | ||||||||||||||
Adjusted net income allocable to limited partners | $ | 4.0 | $ | 13.4 | $ | 14.5 | $ | 40.0 | $ | 36.8 | $ | 36.7 | ||||||||||||||
Adjusted net income per unit - basic and diluted | $ | 0.08 | $ | 0.30 | $ | 0.33 | $ | 0.81 | $ | 0.86 | $ | 0.86 | ||||||||||||||
Net cash provided by operating activities | $ | 10.6 | $ | 13.6 | $ | 24.6 | $ | 71.6 | $ | 106.3 | $ | 88.6 | ||||||||||||||
Interest expense | 11.1 | 8.4 | 8.4 | 23.7 | 16.4 | 16.4 | ||||||||||||||||||||
Distributions from unconsolidated affiliates, net of earnings | (0.8 | ) | (0.6 | ) | (2.7 | ) | (0.7 | ) | (1.7 | ) | (5.4 | ) | ||||||||||||||
Net changes in operating assets and liabilities | 79.8 | 61.0 | 41.1 | 68.3 | (0.8 | ) | (0.4 | ) | ||||||||||||||||||
Net income or loss attributable to noncontrolling interests, net of |
(1.1 | ) | (12.8 | ) | (12.9 | ) | (2.2 | ) | (19.9 | ) | (20.0 | ) | ||||||||||||||
Non-cash commodity derivative mark-to-market | (64.8 | ) | (22.9 | ) | (21.8 | ) | (42.2 | ) | 12.0 | 11.9 | ||||||||||||||||
Other, net | 0.3 | 8.3 | 8.3 | 0.1 | 6.6 | 6.2 | ||||||||||||||||||||
Adjusted EBITDA | 35.1 | 55.0 | 45.0 | 118.6 | 118.9 | 97.3 | ||||||||||||||||||||
Interest expense, net of derivative mark-to-market and other | (11.1 | ) | (8.4 | ) | (20.3 | ) | (16.4 | ) | ||||||||||||||||||
Maintenance capital expenditures, net of reimbursable projects | (4.3 | ) | (2.3 | ) | (7.6 | ) | (4.0 | ) | ||||||||||||||||||
Distributions from unconsolidated affiliates, net of earnings | 0.8 | 2.7 | 0.7 | 5.4 | ||||||||||||||||||||||
Proceeds from sale of assets, net of noncontrolling interest | 0.1 | - | 0.1 | 0.2 | ||||||||||||||||||||||
Adjustment to remove impact of Southeast Texas pooling | - | (17.3 | ) | |||||||||||||||||||||||
Other | 1.3 | 2.0 | 2.7 | 2.9 | ||||||||||||||||||||||
Distributable cash flow(1) | $ | 21.9 | $ | 39.0 | $ | 76.9 | $ | 85.4 |
(1) Distributable cash flow has not been calculated under the pooling method.
DCP MIDSTREAM PARTNERS, LP |
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Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2012 |
As |
2012 |
As |
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(Millions, except as indicated) | |||||||||||||||||
Reconciliation of Non-GAAP Financial Measures: | |||||||||||||||||
Distributable cash flow | $ | 21.9 | $ | 39.0 | $ | 76.9 | $ | 85.4 | |||||||||
Distributions declared | $ | 49.4 | $ | 34.0 | $ | 92.0 | $ | 67.4 | |||||||||
Distribution coverage ratio | 0.44x | 1.15x | 0.84x | 1.27x | |||||||||||||
Distributable cash flow | $ | 21.9 | $ | 39.0 | $ | 76.9 | $ | 85.4 | |||||||||
Distributions paid | $ | 42.6 | $ | 33.4 | $ | 79.3 | $ | 63.4 | |||||||||
Distribution coverage ratio — paid | 0.51x | 1.17x | 0.97x | 1.35x | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2012 | 2011 |
As |
2012 | 2011 |
As |
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(Millions, except per unit amounts) | ||||||||||||||||||||||||
Natural Gas Services Segment: | ||||||||||||||||||||||||
Financial results: | ||||||||||||||||||||||||
Segment net income attributable to partners | $ | 94.4 | $ | 57.6 | $ | 48.3 | 116.1 | $ | 55.4 | $ | 37.4 | |||||||||||||
Non-cash (gain) loss commodity derivative mark-to-market | (49.2 | ) | (23.3 | ) | (22.3 | ) | (26.2 | ) | 11.3 | 11.1 | ||||||||||||||
Depreciation and amortization expense | 8.2 | 22.0 | 17.4 | 30.5 | 43.9 | 34.9 | ||||||||||||||||||
Noncontrolling interest on depreciation and income tax | (0.4 | ) | (3.2 | ) | (3.2 | ) | (0.8 | ) | (6.8 | ) | (6.8 | ) | ||||||||||||
Adjusted segment EBITDA | $ | 53.0 | $ | 53.1 | $ | 40.2 | $ | 119.6 | $ | 103.8 | $ | 76.6 | ||||||||||||
Operating and financial data: | ||||||||||||||||||||||||
Natural gas throughput (MMcf/d) | 1,607 | 1,440 | 1,223 | 1,644 | 1,460 | 1,247 | ||||||||||||||||||
NGL gross production (Bbls/d) | 62,771 | 54,843 | 40,754 | 62,978 | 55,831 | 40,714 | ||||||||||||||||||
Operating and maintenance expense | $ | 22.6 | $ | 20.0 | $ | 15.7 | $ | 40.9 | $ | 41.0 | $ | 32.2 | ||||||||||||
NGL Logistics Segment: | ||||||||||||||||||||||||
Financial results: | ||||||||||||||||||||||||
Segment net income attributable to partners | 10.4 | $ | 8.9 | $ | 8.9 | 20.0 | $ | 13.6 | $ | 13.6 | ||||||||||||||
Depreciation and amortization expense | 0.8 | 2.0 | 2.0 | 3.0 | 3.7 | 3.7 | ||||||||||||||||||
Adjusted segment EBITDA | $ | 11.2 | $ | 10.9 | $ | 10.9 | $ | 23.0 | $ | 17.3 | $ | 17.3 | ||||||||||||
Operating and financial data: | ||||||||||||||||||||||||
NGL pipelines throughput (Bbls/d) | 72,786 | 59,129 | 59,129 | 77,740 | 52,421 | 52,421 | ||||||||||||||||||
Operating and maintenance expense | $ | 3.5 | $ | 1.8 | $ | 1.8 | $ | 7.7 | $ | 5.8 | $ | 5.8 | ||||||||||||
Wholesale Propane Logistics Segment: | ||||||||||||||||||||||||
Financial results: | ||||||||||||||||||||||||
Segment net (loss) income attributable to partners | $ | (3.1 | ) | $ | 1.3 | $ | 1.3 | $ | 13.6 | $ | 18.8 | $ | 18.8 | |||||||||||
Non-cash (gain) loss commodity derivative mark-to-market | (15.6 | ) | 0.5 | 0.5 | (16.0 | ) | 0.8 | 0.8 | ||||||||||||||||
Depreciation and amortization expense | 0.6 | 0.7 | 0.7 | 1.3 | 1.4 | 1.4 | ||||||||||||||||||
Adjusted segment EBITDA | $ | (18.1 | ) | $ | 2.5 | $ | 2.5 | $ | (1.1 | ) | $ | 21.0 | $ | 21.0 | ||||||||||
Operating and financial data: | ||||||||||||||||||||||||
Propane sales volume (Bbls/d) | 11,641 | 16,538 | 16,538 | 23,010 | 28,288 | 28,288 | ||||||||||||||||||
Operating and maintenance expense | $ | 3.6 | $ | 4.2 | $ | 4.2 | $ | 7.4 | $ | 7.8 | $ | 7.8 | ||||||||||||
DCP MIDSTREAM PARTNERS, LP |
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Q311 | Q411 | Q112 | Q212 |
Twelve |
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(Millions) | |||||||||||||||||||||
Net income attributable to partners | $ | 68.5 | $ | 4.7 | $ | 23.3 | $ | 79.1 | $ | 175.6 | |||||||||||
Net income related to retrospective pooling of Southeast Texas | (2.2 | ) | (6.2 | ) | - | - | (8.4 | ) | |||||||||||||
Net income (loss) attributable to partners as originally reported | $ | 66.3 | $ | (1.5 | ) | $ | 23.3 | $ | 79.1 | $ | 167.2 | ||||||||||
As |
As |
Q112 | Q212 |
Twelve |
||||||||||||||||
(Millions, except as indicated) | ||||||||||||||||||||
Net income (loss) attributable to partners | $ | 66.3 | $ | (1.5 | ) | $ | 23.3 | $ | 79.1 | $ | 167.2 | |||||||||
Maintenance capital expenditures, net of reimbursable projects | (2.6 | ) | (2.9 | ) | (3.3 | ) | (4.3 | ) | (13.1 | ) | ||||||||||
Depreciation and amortization expense, net of noncontrolling |
17.2 | 17.0 | 24.8 | 9.1 | 68.1 | |||||||||||||||
Non-cash commodity derivative mark-to-market | (60.0 | ) | 25.4 | 22.6 | (64.8 | ) | (76.8 | ) | ||||||||||||
Distributions from unconsolidated affiliates, net of losses and |
2.3 | 1.6 | (0.1 | ) | 0.8 | 4.6 | ||||||||||||||
Proceeds from asset sales and assets held for sale, net of |
2.3 | 1.4 | — | 0.1 | 3.8 | |||||||||||||||
Impact of minimum volume receipt for throughput commitment | 1.4 | (4.4 | ) | 1.6 | 1.9 | 0.5 | ||||||||||||||
Non-cash interest rate derivative mark-to-market | 0.7 | 0.5 | 1.2 | (0.4 | ) | 2.0 | ||||||||||||||
Adjustment to remove impact of Southeast Texas pooling | - | - | (17.3 | ) | - | (17.3 | ) | |||||||||||||
Other | - | 0.3 | 2.2 | 0.4 | 2.9 | |||||||||||||||
Distributable cash flow | $ | 27.6 | $ | 37.4 | $ | 55.0 | $ | 21.9 | $ | 141.9 | ||||||||||
Distributions declared | $ | 34.9 | $ | 36.7 | $ | 42.6 | $ | 49.4 | $ | 163.6 | ||||||||||
Distribution coverage ratio | 0.79x | 1.02x | 1.29x | 0.44x | 0.87x | |||||||||||||||
Distributable cash flow | $ | 27.6 | $ | 37.4 | $ | 55.0 | $ | 21.9 | $ | 141.9 | ||||||||||
Distributions paid | $ | 34.0 | $ | 34.9 | $ | 36.7 | $ | 42.6 | $ | 148.2 | ||||||||||
Distribution coverage ratio — paid | 0.81x | 1.07x | 1.50x | 0.51x | 0.96x |
Source:
DCP Midstream Partners, LP
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or
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