DELAWARE
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001-32678
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03-0567133
|
(State
or other jurisdiction of
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(Commission
File Number)
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(IRS
Employer
|
incorporation)
|
Identification
No.)
|
Exhibit
Number
|
Description
|
|
Exhibit
99.1
|
Press
Release dated August 8, 2007
|
DCP MIDSTREAM PARTNERS, LP | ||
|
|
|
By: |
DCP
MIDSTREAM GP, LP
its
General Partner
|
|
By: |
DCP MIDSTREAM GP, LLC
its General Partner
|
|
By: | /s/ Michael S. Richards | |
Name:Michael S. Richards |
||
Title:Vice
President, General Counsel and Secretary
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Exhibit
Number
|
Description
|
|
Exhibit
99.1
|
Press
Release dated August 8, 2007
|
August
8, 2007
|
MEDIA
AND INVESTOR RELATIONS CONTACT:
|
Karen
L. Taylor
|
Phone:
|
303/633-2913
|
|
24-Hour:
|
303/809-9160
|
·
|
Expanding
midstream footprint provides platform for continued
growth
|
·
|
14%
increase in quarterly distribution reflects solid performance from
base
business and expected contributions from
acquisitions
|
·
|
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
|
·
|
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
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
($
in millions, except per unit data)
|
|||||||||||||
Sales
of natural gas, propane, NGLs and condensate
|
$
|
185.6
|
$
|
153.6
|
$
|
418.5
|
$
|
412.6
|
|||||
Transportation
and processing services
|
7.5
|
6.9
|
14.8
|
13.4
|
|||||||||
Losses
from non-trading derivative activity
|
(6.2
|
)
|
(0.4
|
)
|
(6.3
|
)
|
(0.5
|
)
|
|||||
Total
operating revenues
|
186.9
|
160.1
|
427.0
|
425.5
|
|||||||||
Purchases
of natural gas, propane and NGLs
|
165.2
|
138.0
|
376.1
|
379.9
|
|||||||||
Gross
margin
|
21.7
|
22.1
|
50.9
|
45.6
|
|||||||||
Operating
and maintenance expense
|
(6.3
|
)
|
(5.1
|
)
|
(12.9
|
)
|
(11.5
|
)
|
|||||
General
and administrative expense
|
(6.9
|
)
|
(4.6
|
)
|
(11.7
|
)
|
(9.3
|
)
|
|||||
Earnings
from equity method investments
|
0.3
|
0.1
|
0.5
|
0.1
|
|||||||||
EBITDA
|
8.8
|
12.5
|
26.8
|
24.9
|
|||||||||
Depreciation
and amortization expense
|
(4.5
|
)
|
(3.1
|
)
|
(7.9
|
)
|
(6.4
|
)
|
|||||
Interest
income
|
0.8
|
1.5
|
2.5
|
3.0
|
|||||||||
Interest
expense
|
(4.6
|
)
|
(2.6
|
)
|
(8.4
|
)
|
(5.2
|
)
|
|||||
Net
income
|
$
|
0.5
|
$
|
8.3
|
$
|
13.0
|
$
|
16.3
|
|||||
Less:
|
|||||||||||||
Net
loss (income)attributable to predecessor operations
|
—
|
0.5
|
—
|
(2.1
|
)
|
||||||||
General
partner interest in net income
|
(0.3
|
)
|
(0.2
|
)
|
(0.6
|
)
|
(0.3
|
)
|
|||||
Net
income allocable to limited partners
|
$
|
0.2
|
$
|
8.6
|
$
|
12.4
|
$
|
13.9
|
|||||
Net
income per limited partner unit—basic and diluted
|
$
|
0.01
|
$
|
0.47
|
$
|
0.60
|
$
|
0.79
|
|||||
Weighted-average
limited partner units outstanding—basic and diluted
|
18.0
|
17.5
|
17.8
|
17.5
|
|||||||||
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||
2007
|
|
2006
|
|
2007
|
|
2006
|
|||||||
($
in millions)
|
|||||||||||||
Natural
Gas Services Segment:
|
|||||||||||||
Financial
data:
|
|||||||||||||
Segment
gross margin
|
$
|
16.9
|
$
|
18.2
|
$
|
34.0
|
$
|
35.2
|
|||||
Operating
data:
|
|||||||||||||
Natural
gas throughput (MMcf/d)
|
373
|
386
|
372
|
375
|
|||||||||
NGL
gross production (Bbls/d)
|
6,620
|
5,320
|
5,962
|
5,141
|
|||||||||
Wholesale
Propane Logistics Segment:
|
|||||||||||||
Financial
data:
|
|||||||||||||
Segment
gross margin
|
$
|
3.8
|
$
|
2.8
|
$
|
14.6
|
$
|
8.4
|
|||||
Operating
data:
|
|||||||||||||
Propane
sales volume (Bbls/d)
|
16,179
|
14,837
|
25,715
|
24,664
|
|||||||||
NGL
Logistics Segment:
|
|||||||||||||
Financial
data:
|
|||||||||||||
Segment
gross margin
|
$
|
1.0
|
$
|
1.1
|
$
|
2.3
|
$
|
2.0
|
|||||
Operating
data:
|
|||||||||||||
NGL
pipelines throughput (Bbls/d)
|
28,376
|
24,469
|
27,917
|
23,947
|
Reconciliation
of segment net income to segment gross margin:
|
|||||||||||||
Natural
Gas Services Segment:
|
|||||||||||||
Segment
net income
|
$
|
9.2
|
$
|
12.6
|
$
|
20.1
|
$
|
22.7
|
|||||
Add:
|
|||||||||||||
Depreciation
and amortization expense
|
3.8
|
2.7
|
6.7
|
5.5
|
|||||||||
Operating
and maintenance expense
|
3.9
|
2.9
|
7.2
|
7.0
|
|||||||||
Segment
gross margin
|
$
|
16.9
|
$
|
18.2
|
$
|
34.0
|
$
|
35.2
|
|||||
Wholesale
Propane Logistics Segment:
|
|||||||||||||
Segment
net income
|
$
|
1.5
|
$
|
0.5
|
$
|
8.9
|
$
|
3.7
|
|||||
Add:
|
|||||||||||||
Depreciation
and amortization expense
|
0.2
|
0.2
|
0.4
|
0.5
|
|||||||||
Operating
and maintenance expense
|
2.1
|
2.1
|
5.3
|
4.2
|
|||||||||
Segment
gross margin
|
$
|
3.8
|
$
|
2.8
|
$
|
14.6
|
$
|
8.4
|
|||||
NGL
Logistics Segment:
|
|||||||||||||
Segment
net income
|
$
|
0.5
|
$
|
0.9
|
$
|
1.6
|
$
|
1.4
|
|||||
Add:
|
|||||||||||||
Depreciation
and amortization expense
|
0.5
|
0.2
|
0.8
|
0.4
|
|||||||||
Operating
and maintenance expense
|
0.3
|
0.1
|
0.4
|
0.3
|
|||||||||
Less:
|
|||||||||||||
Earnings
from equity method investments
|
(0.3
|
)
|
(0.1
|
)
|
(0.5
|
)
|
(0.1
|
)
|
|||||
Segment
gross margin
|
$
|
1.0
|
$
|
1.1
|
$
|
2.3
|
$
|
2.0
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Reconciliation
of net income to EBITDA:
|
|||||||||||||
Net
income
|
$
|
0.5
|
$
|
8.3
|
$
|
13.0
|
$
|
16.3
|
|||||
Interest
income
|
(0.8
|
)
|
(1.5
|
)
|
(2.5
|
)
|
(3.0
|
)
|
|||||
Interest
expense
|
4.6
|
2.6
|
8.4
|
5.2
|
|||||||||
Depreciation
and amortization expense
|
4.5
|
3.1
|
7.9
|
6.4
|
|||||||||
EBITDA
|
$
|
8.8
|
$
|
12.5
|
$
|
26.8
|
$
|
24.9
|
|||||
Reconciliation
of net cash provided by operating activities to
EBITDA:
|
|||||||||||||
Net
cash provided by operating activities
|
$
|
7.1
|
$
|
18.7
|
$
|
21.3
|
$
|
26.9
|
|||||
Interest
income
|
(0.8
|
)
|
(1.5
|
)
|
(2.5
|
)
|
(3.0
|
)
|
|||||
Interest
expense
|
4.6
|
2.6
|
8.4
|
5.2
|
|||||||||
Undistributed
earnings from equity method investments
|
0.3
|
0.1
|
0.5
|
0.1
|
|||||||||
Net
changes in operating assets and liabilities
|
(2.3
|
)
|
(8.1
|
)
|
(1.3
|
)
|
(5.7
|
)
|
|||||
Other,
net
|
(0.1
|
)
|
0.7
|
0.4
|
1.4
|
||||||||
EBITDA
|
$
|
8.8
|
$
|
12.5
|
$
|
26.8
|
$
|
24.9
|
|||||
Reconciliation
of net cash provided by operating activities to distributable cash
flow:
|
|||||||||||||
Net
cash provided by operating activities
|
$
|
7.1
|
$
|
18.7
|
$
|
21.3
|
$
|
26.9
|
|||||
Maintenance
capital expenditures, net of reimbursable projects
|
(0.3
|
)
|
(0.8
|
)
|
(0.9
|
)
|
(2.2
|
)
|
|||||
Non-cash
hedge ineffectiveness
|
—
|
0.1
|
—
|
0.5
|
|||||||||
Non-cash
derivative mark-to-market
|
6.2
|
0.4
|
6.3
|
0.5
|
|||||||||
Post
closing reimbursement from DCP Midstream, LLC for maintenance capital
expenditures
|
—
|
0.2
|
—
|
1.0
|
|||||||||
Net
changes in operating assets and liabilities
|
(2.3
|
)
|
(8.1
|
)
|
(1.3
|
)
|
(5.7
|
)
|
|||||
Other,
net
|
(0.1
|
)
|
0.7
|
0.4
|
1.4
|
||||||||
Distributable
cash flow
|
$
|
10.6
|
$
|
11.2
|
$
|
25.8
|
$
|
22.4
|
|||||