DELAWARE
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001-32678
|
03-0567133
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(State
or other jurisdiction of
|
(Commission
File Number)
|
(IRS
Employer
|
incorporation)
|
Identification
No.)
|
Exhibit
Number
|
Description
|
Exhibit
99.1
|
Press
Release dated November 7, 2007
|
Exhibit
Number
|
Description
|
Exhibit
99.1
|
Press
Release dated November 7, 2007
|
November
7, 2007
|
MEDIA
AND INVESTOR RELATIONS CONTACT:
|
Karen
L. Taylor
|
Phone:
|
303/633-2913
|
|
24-Hour:
|
303/809-9160
|
·
|
Steady
operating results support healthy distributable cash flow and distribution
increase
|
·
|
$625
million in acquisitions closed year-to-date provide platform for
future
growth
|
·
|
Net
income of $7.5 million, or $0.29 per limited partner unit in the
third
quarter of 2007, as compared to net income of $14.3 million, or $0.51
per
limited partner unit in the third quarter of 2006;
and
|
·
|
Distributable
cash flow, a non-generally accepted accounting principles (“non-GAAP”)
financial measure, of $17.3 million in the third quarter of 2007,
as
compared to $16.9 million in the third quarter of
2006.
|
·
|
Net
income of $24.1 million, or $0.89 per limited partner unit for the
nine
months ended September 30, 2007, as compared to net income of $46.3
million, or $1.32 per limited partner unit for the nine months ended
September 30, 2006; and
|
·
|
Distributable
cash flow, a non-GAAP measure, of $61.6 million for the nine months
ended
September 30, 2007, as compared to $50.3 million for the nine months
ended
September 30, 2006.
|
·
|
financial
performance of our assets without regard to financing methods, capital
structure or historical cost basis;
|
·
|
our
operating performance and return on capital as compared to those
of other
companies in the midstream energy industry, without regard to financing
methods or capital structure; and
|
·
|
viability
of acquisitions and capital expenditure projects and the overall
rates of
return on alternative investment opportunities.
|
·
|
the
level and success of natural gas drilling around our assets and our
ability to connect supplies to our gathering and processing systems
in
light of competition;
|
·
|
our
ability to grow through acquisitions or organic growth projects,
and the
successful integration and future performance of such
assets;
|
·
|
our
ability to access the debt and equity
markets;
|
·
|
fluctuations
in oil, natural gas, propane and other NGL prices;
|
·
|
our
ability to purchase propane from our principal suppliers for our
wholesale
propane logistics business;
and
|
·
|
the
credit worthiness of counterparties to our transactions.
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
($
in millions, except per unit data)
|
|||||||||||||
Sales
of natural gas, propane, NGLs and condensate
|
$
|
185.8
|
$
|
155.3
|
$
|
604.3
|
$
|
567.9
|
|||||
Transportation
and processing services
|
8.9
|
7.0
|
23.7
|
20.4
|
|||||||||
(Losses)
gains from non-trading derivative activity
|
(6.1
|
)
|
0.5
|
(21.1
|
)
|
—
|
|||||||
Total
operating revenues
|
188.6
|
162.8
|
606.9
|
588.3
|
|||||||||
Purchases
of natural gas, propane and NGLs
|
163.3
|
140.2
|
539.4
|
520.1
|
|||||||||
Gross
margin
|
25.3
|
22.6
|
67.5
|
68.2
|
|||||||||
Operating
and maintenance expense
|
(8.1
|
)
|
(5.8
|
)
|
(21.0
|
)
|
(17.3
|
)
|
|||||
General
and administrative expense
|
(5.4
|
)
|
(6.3
|
)
|
(17.1
|
)
|
(15.6
|
)
|
|||||
Earnings
from equity method investments
|
10.8
|
8.2
|
23.6
|
24.0
|
|||||||||
Non-controlling
interest in income
|
(0.3
|
)
|
—
|
(0.3
|
)
|
—
|
|||||||
EBITDA
|
22.3
|
18.7
|
52.7
|
59.3
|
|||||||||
Depreciation
and amortization expense
|
(7.9
|
)
|
(3.2
|
)
|
(15.8
|
)
|
(9.6
|
)
|
|||||
Interest
income
|
1.2
|
1.7
|
3.7
|
4.7
|
|||||||||
Interest
expense
|
(8.1
|
)
|
(2.9
|
)
|
(16.5
|
)
|
(8.1
|
)
|
|||||
Net
income
|
$
|
7.5
|
$
|
14.3
|
$
|
24.1
|
$
|
46.3
|
|||||
Less:
|
|||||||||||||
Net
income attributable to predecessor operations
|
—
|
(4.6
|
)
|
(3.6
|
)
|
(22.4
|
)
|
||||||
General
partner interest in net income
|
(0.9
|
)
|
(0.2
|
)
|
(1.5
|
)
|
(0.5
|
)
|
|||||
Net
income allocable to limited partners
|
$
|
6.6
|
$
|
9.5
|
$
|
19.0
|
$
|
23.4
|
|||||
Net
income per limited partner unit—basic and diluted
|
$
|
0.29
|
$
|
0.51
|
$
|
0.89
|
$
|
1.32
|
|||||
Weighted-average
limited partner units outstanding—basic and diluted
|
22.3
|
17.5
|
19.3
|
17.5
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
($
in millions)
|
|||||||||||||
Natural
Gas Services Segment:
|
|||||||||||||
Financial
data:
|
|||||||||||||
Segment
gross margin
|
$
|
22.0
|
$
|
20.7
|
$
|
47.3
|
$
|
55.9
|
|||||
Operating
data:
|
|||||||||||||
Natural
gas throughput (MMcf/d)
|
770
|
666
|
735
|
659
|
|||||||||
NGL
gross production (Bbls/d)
|
22,570
|
19,119
|
21,083
|
19,292
|
|||||||||
Wholesale
Propane Logistics Segment:
|
|||||||||||||
Financial
data:
|
|||||||||||||
Segment
gross margin
|
$
|
1.9
|
$
|
0.7
|
$
|
16.5
|
$
|
9.1
|
|||||
Operating
data:
|
|||||||||||||
Propane
sales volume (Bbls/d)
|
13,014
|
12,428
|
21,539
|
20,642
|
|||||||||
NGL
Logistics Segment:
|
|||||||||||||
Financial
data:
|
|||||||||||||
Segment
gross margin
|
$
|
1.4
|
$
|
1.2
|
$
|
3.7
|
$
|
3.2
|
|||||
Operating
data:
|
|||||||||||||
NGL
pipelines throughput (Bbls/d)
|
30,837
|
25,682
|
28,890
|
24,525
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
($
in millions)
|
|||||||||||||
Reconciliation
of net cash provided by operating activities to distributable cash
flow:
|
|||||||||||||
Net
cash provided by operating activities
|
$
|
26.3
|
$
|
2.2
|
$
|
66.1
|
$
|
40.2
|
|||||
Maintenance
capital expenditures, net of reimbursable projects
|
(0.8
|
)
|
(0.2
|
)
|
(1.7
|
)
|
(2.4
|
)
|
|||||
Non-cash
derivative mark-to-market
|
4.9
|
(0.7
|
)
|
19.9
|
0.2
|
||||||||
Post
closing reimbursement from DCP Midstream, LLC for maintenance capital
expenditures
|
—
|
0.1
|
—
|
1.1
|
|||||||||
Net
changes in operating assets and liabilities
|
(13.1
|
)
|
15.1
|
(23.1
|
)
|
9.4
|
|||||||
Other,
net
|
—
|
0.4
|
0.4
|
1.8
|
|||||||||
Distributable
cash flow
|
$
|
17.3
|
$
|
16.9
|
$
|
61.6
|
$
|
50.3
|
|||||
Reconciliation
of net income to EBITDA:
|
|||||||||||||
Net
income
|
$
|
7.5
|
$
|
14.3
|
$
|
24.1
|
$
|
46.3
|
|||||
Interest
income
|
(1.2
|
)
|
(1.7
|
)
|
(3.7
|
)
|
(4.7
|
)
|
|||||
Interest
expense
|
8.1
|
2.9
|
16.5
|
8.1
|
|||||||||
Depreciation
and amortization expense
|
7.9
|
3.2
|
15.8
|
9.6
|
|||||||||
EBITDA
|
$
|
22.3
|
$
|
18.7
|
$
|
52.7
|
$
|
59.3
|
|||||
Reconciliation
of net cash provided by operating activities to
EBITDA:
|
|||||||||||||
Net
cash provided by operating activities
|
$
|
26.3
|
$
|
2.2
|
$
|
66.1
|
$
|
40.2
|
|||||
Interest
income
|
(1.2
|
)
|
(1.7
|
)
|
(3.7
|
)
|
(4.7
|
)
|
|||||
Interest
expense
|
8.1
|
2.9
|
16.5
|
8.1
|
|||||||||
Undistributed
earnings from equity method investments
|
2.2
|
(0.2
|
)
|
(3.5
|
)
|
4.5
|
|||||||
Net
changes in operating assets and liabilities
|
(13.1
|
)
|
15.1
|
(23.1
|
)
|
9.4
|
|||||||
Other,
net
|
—
|
0.4
|
0.4
|
1.8
|
|||||||||
EBITDA
|
$
|
22.3
|
$
|
18.7
|
$
|
52.7
|
$
|
59.3
|
|||||
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
($
in millions)
|
|||||||||||||
Reconciliation
of segment net income to segment gross margin:
|
|||||||||||||
Natural
Gas Services Segment:
|
|||||||||||||
Segment
net income
|
$
|
19.2
|
$
|
23.1
|
$
|
42.9
|
$
|
61.5
|
|||||
Add:
|
|||||||||||||
Depreciation
and amortization expense
|
7.4
|
2.7
|
14.1
|
8.2
|
|||||||||
Operating
and maintenance expense
|
5.4
|
3.1
|
12.6
|
10.1
|
|||||||||
Non-controlling
interest in income
|
0.3
|
—
|
0.3
|
—
|
|||||||||
Less:
|
|||||||||||||
Earnings
from equity method investments
|
(10.3
|
)
|
(8.2
|
)
|
(22.6
|
)
|
(23.9
|
)
|
|||||
Segment
gross margin
|
$
|
22.0
|
$
|
20.7
|
$
|
47.3
|
$
|
55.9
|
|||||
Wholesale
Propane Logistics Segment:
|
|||||||||||||
Segment
net (loss) income
|
$
|
(0.9
|
)
|
$
|
(1.7
|
)
|
$
|
8.0
|
$
|
2.0
|
|||
Add:
|
|||||||||||||
Depreciation
and amortization expense
|
0.3
|
0.2
|
0.7
|
0.7
|
|||||||||
Operating
and maintenance expense
|
2.5
|
2.2
|
7.8
|
6.4
|
|||||||||
Segment
gross margin
|
$
|
1.9
|
$
|
0.7
|
$
|
16.5
|
$
|
9.1
|
|||||
NGL
Logistics Segment:
|
|||||||||||||
Segment
net income
|
$
|
1.5
|
$
|
0.4
|
$
|
3.1
|
$
|
1.8
|
|||||
Add:
|
|||||||||||||
Depreciation
and amortization expense
|
0.2
|
0.3
|
1.0
|
0.7
|
|||||||||
Operating
and maintenance expense
|
0.2
|
0.5
|
0.6
|
0.8
|
|||||||||
Less:
|
|||||||||||||
Earnings
from equity method investments
|
(0.5
|
)
|
—
|
(1.0
|
)
|
(0.1
|
)
|
||||||
Segment
gross margin
|
$
|
1.4
|
$
|
1.2
|
$
|
3.7
|
$
|
3.2
|