Delaware
|
001-32678
|
03-0567133
|
(State
or other jurisdiction
of
incorporation)
|
(Commission
File No.)
|
(IRS
Employer
Identification
No.)
|
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||||||||||
2009
|
2008
|
As
Reported in 2008
|
2009
|
2008
|
As
Reported in 2008
|
|||||||||||||||||||
(millions)
|
(millions)
|
|||||||||||||||||||||||
Net
cash provided by operating activities
|
$ | 43.8 | $ | 50.2 | $ | 42.0 | $ | 95.1 | $ | 121.0 | $ | 54.7 |
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||||||||||
2009
|
2008
|
As
Reported in 2008
|
2009
|
2008
|
As
Reported in 2008
|
|||||||||||||||||||
(millions)
|
(millions)
|
|||||||||||||||||||||||
Natural
Gas Services Segment:
|
||||||||||||||||||||||||
Segment
net income attributable to partners
|
$ | 20.8 | $ | 170.1 | $ | 165.5 | $ | 1.8 | $ | 35.6 | $ | 13.3 | ||||||||||||
Wholesale
Propane Logistics Segment:
|
||||||||||||||||||||||||
Segment
net income (loss) attributable to partners
|
$ | 2.4 | $ | (1.3 | ) | $ | (1.3 | ) | $ | 28.2 | $ | 5.2 | $ | 5.2 | ||||||||||
NGL
Logistics Segment:
|
||||||||||||||||||||||||
Segment
net income attributable to partners
|
$ | 1.7 | $ | 1.1 | $ | 1.1 | $ | 3.8 | $ | 4.4 | $ | 4.4 |
(d) | Exhibits. | |
Exhibit Number | Description | |
99.1 | Press Release dated November 5, 2009 |
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
|
Exhibit Number | Description | |
99.1 | Press Release dated November 5, 2009 |
November
5, 2009
|
MEDIA
AND INVESTOR RELATIONS CONTACT:
|
Karen
L. Quast
|
Phone:
|
303/633-2913
|
|
24-Hour:
|
303/809-9160
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||||||||||
2009
|
2008
|
As
Reported in 2008
|
2009
|
2008
|
As
Reported in 2008
|
|||||||||||||||||||
(Unaudited)
(Millions,
except per unit amounts)
|
||||||||||||||||||||||||
Net
income (loss) attributable to partners
|
$ | 9.9 | $ | 154.8 | $ | 152.7 | $ | (11.1 | ) | $ | 1.8 | $ | (13.1 | ) | ||||||||||
Net
income (loss) per limited partner unit
|
$ | 0.21 | $ | 5.24 | $ | 5.24 | $ | (0.63 | ) | $ | (0.79 | ) | $ | (0.79 | ) | |||||||||
Adjusted
EBITDA*
|
$ | 30.2 | $ | 17.8 | $ | 13.6 | $ | 102.8 | $ | 97.2 | $ | 76.2 | ||||||||||||
Adjusted
net income (loss) attributable to partners*
|
$ | 9.6 | $ | 0.5 | $ | (1.6 | ) | $ | 42.6 | $ | 46.4 | $ | 31.5 | |||||||||||
Adjusted
net income (loss) per limited partner unit*
|
$ | 0.20 | $ | (0.16 | ) | $ | (0.16 | ) | $ | 1.10 | $ | 0.83 | $ | 0.83 | ||||||||||
Distributable
cash flow*
|
$ | 21.2 | $ | 14.0 | $ | 12.2 | $ | 71.8 | $ | 82.0 | $ | 67.4 |
·
|
the
ability of our assets to generate cash sufficient to pay interest costs,
support our indebtedness, make cash distributions to our unitholders and
general partner, and finance maintenance
expenditures;
|
·
|
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
extent of changes in commodity prices, our ability to effectively limit a
portion of the adverse impact of potential changes in prices through
derivative financial instruments, and the potential impact of price and
producers’ access to capital on natural gas drilling, demand for our
services, and the volume of NGLs and condensate
extracted;
|
·
|
general
economic, market and business
conditions;
|
·
|
the
level and success of natural gas drilling around our assets, the level of
gas production volumes 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, contributions from affiliates, or
organic growth projects, and the successful integration and future
performance of such assets;
|
·
|
our
ability to access the debt and equity markets, which will depend on
general market conditions, inflation rates, interest rates and our ability
to effectively limit a portion of the adverse effects of potential changes
in interest rates by entering into derivative financial instruments, and
our ability to comply with the covenants to our credit
agreement;
|
·
|
our
ability to purchase propane from our principal suppliers for our wholesale
propane logistics business;
|
·
|
our
ability to construct facilities in a timely fashion, which is partially
dependent on obtaining required building, environmental and other permits
issued by federal, state and municipal governments, or agencies thereof,
the availability of specialized contractors and laborers, and the price of
and demand for supplies;
|
·
|
the
creditworthiness of counterparties to our
transactions;
|
·
|
weather
and other natural phenomena, including their potential impact on demand
for the commodities we sell and the operation of company owned and
third-party-owned infrastructure;
|
·
|
changes
in laws and regulations, particularly with regard to taxes, safety and
protection of the environment, including climate change legislation, or
the increased regulation of our
industry;
|
·
|
our
ability to obtain insurance on commercially reasonable terms, if at all,
as well as the adequacy of the insurance to cover our
losses;
|
·
|
industry
changes, including the impact of consolidations, increased delivery of
liquefied natural gas to the United States, alternative energy sources,
technological advances and changes in competition;
and
|
·
|
the
amount of collateral we may be required to post from time to time in our
transactions.
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||||||||||
2009
|
2008
|
As
Reported in 2008
|
2009
|
2008
|
As
Reported in 2008
|
|||||||||||||||||||
(Millions,
except per unit amounts)
|
||||||||||||||||||||||||
Sales
of natural gas, propane, NGLs and condensate
|
$ | 178.1 | $ | 389.7 | $ | 271.2 | $ | 608.9 | $ | 1,397.7 | $ | 952.4 | ||||||||||||
Transportation,
processing and other
|
24.2 | 20.3 | 13.6 | 68.7 | 60.3 | 39.7 | ||||||||||||||||||
Gains
(losses) from commodity derivative activity, net
|
3.4 | 142.1 | 142.0 | (35.5 | ) | (82.3 | ) | (81.7 | ) | |||||||||||||||
Total
operating revenues
|
205.7 | 552.1 | 426.8 | 642.1 | 1,375.7 | 910.4 | ||||||||||||||||||
Purchases
of natural gas, propane and NGLs
|
(151.3 | ) | (350.8 | ) | (249.4 | ) | (516.5 | ) | (1,228.4 | ) | (866.9 | ) | ||||||||||||
Operating
and maintenance expense
|
(19.0 | ) | (19.8 | ) | (10.2 | ) | (52.3 | ) | (57.1 | ) | (31.8 | ) | ||||||||||||
Depreciation
and amortization expense
|
(16.4 | ) | (13.0 | ) | (8.8 | ) | (47.3 | ) | (38.7 | ) | (26.3 | ) | ||||||||||||
General
and administrative expense
|
(7.9 | ) | (8.5 | ) | (6.0 | ) | (23.6 | ) | (23.9 | ) | (16.8 | ) | ||||||||||||
Other
|
— | — | — | — | 1.5 | 1.5 | ||||||||||||||||||
Total operating costs and
expenses
|
(194.6 | ) | (392.1 | ) | (274.4 | ) | (639.7 | ) | (1,346.6 | ) | (940.3 | ) | ||||||||||||
Operating
income (loss)
|
11.1 | 160.0 | 152.4 | 2.4 | 29.1 | (29.9 | ) | |||||||||||||||||
Interest
expense, net
|
(7.1 | ) | (6.5 | ) | (6.6 | ) | (21.1 | ) | (18.8 | ) | (19.2 | ) | ||||||||||||
Earnings
from equity method investments
|
8.4 | 6.4 | 8.1 | 11.0 | 24.2 | 38.7 | ||||||||||||||||||
Income
tax expense
|
— | (0.1 | ) | — | (0.1 | ) | (0.7 | ) | — | |||||||||||||||
Net
income attributable to noncontrolling interests
|
(2.5 | ) | (5.0 | ) | (1.2 | ) | (3.3 | ) | (32.0 | ) | (2.7 | ) | ||||||||||||
Net
income (loss) attributable to partners
|
$ | 9.9 | $ | 154.8 | $ | 152.7 | $ | (11.1 | ) | $ | 1.8 | $ | (13.1 | ) | ||||||||||
Net
(income) loss attributable to predecessor operations
|
— | (2.1 | ) | — | 1.0 | (14.9 | ) | — | ||||||||||||||||
General
partner interest in net income or net loss
|
(3.4 | ) | (4.9 | ) | (4.9 | ) | (9.3 | ) | (8.3 | ) | (8.3 | ) | ||||||||||||
Net
income (loss) allocable to limited partners
|
$ | 6.5 | $ | 147.8 | $ | 147.8 | $ | (19.4 | ) | $ | (21.4 | ) | $ | (21.4 | ) | |||||||||
Net
income (loss) per limited partner unit—basic and diluted
|
$ | 0.21 | $ | 5.24 | $ | 5.24 | $ | (0.63 | ) | $ | (0.79 | ) | $ | (0.79 | ) | |||||||||
Weighted-average
limited partner units outstanding—basic and diluted
|
31.7 | 28.2 | 28.2 | 30.6 | 27.1 | 27.1 |
September
30,
2009
|
December
31,
2008
|
|||||||
(Millions)
|
||||||||
Cash
and cash equivalents
|
$ | 12.9 | $ | 61.9 | ||||
Other
current assets
|
125.8 | 153.5 | ||||||
Restricted
investments (a)
|
10.0 | 60.2 | ||||||
Property,
plant and equipment, net
|
976.0 | 882.7 | ||||||
Other
long-term assets
|
258.9 | 261.4 | ||||||
Total assets
|
$ | 1,383.6 | $ | 1,419.7 | ||||
Current
liabilities
|
$ | 151.7 | $ | 163.2 | ||||
Long-term
debt (a)
|
613.0 | 656.5 | ||||||
Other
long-term liabilities
|
54.7 | 37.2 | ||||||
Partners’
equity
|
336.8 | 395.1 | ||||||
Noncontrolling
interests
|
227.4 | 167.7 | ||||||
Total liabilities and
equity
|
$ | 1,383.6 | $ | 1,419.7 | ||||
(a)Long-term
debt includes $10 million and $60 million outstanding on the term loan
portion of our credit facility as of September 30, 2009 and December 31,
2008, respectively. These amounts are fully secured by restricted
investments.
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||||||||||
2009
|
2008
|
As
Reported in 2008
|
2009
|
2008
|
As Reported
in 2008
|
|||||||||||||||||||
(Millions,
except per unit amounts)
|
||||||||||||||||||||||||
Reconciliation
of Non-GAAP Financial Measures:
|
||||||||||||||||||||||||
Net
income (loss) attributable to partners
|
$ | 9.9 | $ | 154.8 | $ | 152.7 | $ | (11.1 | ) | $ | 1.8 | $ | (13.1 | ) | ||||||||||
Interest
expense, net
|
7.1 | 6.5 | 6.6 | 21.1 | 18.8 | 19.2 | ||||||||||||||||||
Depreciation,
amortization and income tax expense, net of noncontrolling
interest
|
13.5 | 10.8 | 8.6 | 39.3 | 32.2 | 25.7 | ||||||||||||||||||
Non-cash
commodity derivative mark-to-market
|
(0.3 | ) | (154.3 | ) | (154.3 | ) | 53.5 | 44.4 | 44.4 | |||||||||||||||
Adjusted
EBITDA
|
30.2 | 17.8 | 13.6 | 102.8 | 97.2 | 76.2 | ||||||||||||||||||
Interest
expense, net
|
(7.1 | ) | (6.5 | ) | (6.6 | ) | (21.1 | ) | (18.8 | ) | (19.2 | ) | ||||||||||||
Depreciation,
amortization and income tax expense, net of noncontrolling
interest
|
(13.5 | ) | (10.8 | ) | (8.6 | ) | (39.3 | ) | (32.2 | ) | (25.7 | ) | ||||||||||||
Other
|
— | — | — | 0.2 | 0.2 | 0.2 | ||||||||||||||||||
Adjusted
net income (loss) attributable to partners
|
9.6 | 0.5 | (1.6 | ) | 42.6 | 46.4 | 31.5 | |||||||||||||||||
Maintenance
capital expenditures, net of reimbursable projects
|
(1.0 | ) | (2.3 | ) | (1.6 | ) | (9.9 | ) | (5.3 | ) | (3.5 | ) | ||||||||||||
Distributions
from equity method investments, net of earnings
|
(0.9 | ) | 2.6 | 4.3 | (0.5 | ) | 6.6 | 11.2 | ||||||||||||||||
Depreciation
and amortization, net of noncontrolling interest
|
13.5 | 10.7 | 8.6 | 39.3 | 31.8 | 25.7 | ||||||||||||||||||
Proceeds
from divestiture of assets
|
— | 2.5 | 2.5 | 0.3 | 2.5 | 2.5 | ||||||||||||||||||
Distributable
cash flow
|
$ | 21.2 | $ | 14.0 | $ | 12.2 | $ | 71.8 | $ | 82.0 | $ | 67.4 | ||||||||||||
Adjusted
net income (loss) attributable to partners
|
$ | 9.6 | $ | 0.5 | $ | (1.6 | ) | $ | 42.6 | $ | 46.4 | $ | 31.5 | |||||||||||
Net
(income) loss attributable to predecessor operations
|
— | (2.1 | ) | — | 1.0 | (14.9 | ) | — | ||||||||||||||||
General
partner interest in net income or net loss
|
(3.4 | ) | (2.9 | ) | (2.9 | ) | (10.0 | ) | (8.9 | ) | (8.9 | ) | ||||||||||||
Adjusted
net income (loss) allocable to limited partners
|
$ | 6.2 | $ | (4.5 | ) | $ | (4.5 | ) | $ | 33.6 | $ | 22.6 | $ | 22.6 | ||||||||||
Adjusted
net income (loss) per unit
|
$ | 0.20 | $ | (0.16 | ) | $ | (0.16 | ) | $ | 1.10 | $ | 0.83 | $ | 0.83 | ||||||||||
Net
cash provided by operating activities
|
$ | 43.8 | $ | 50.2 | $ | 42.0 | $ | 95.1 | $ | 121.0 | $ | 54.7 | ||||||||||||
Interest
expense, net
|
7.1 | 6.5 | 6.6 | 21.1 | 18.8 | 19.2 | ||||||||||||||||||
Distributions
from equity method investments, net of earnings
|
0.9 | (2.6 | ) | (4.3 | ) | 0.5 | (6.6 | ) | (11.2 | ) | ||||||||||||||
Net
changes in operating assets and liabilities
|
(16.1 | ) | 125.4 | 125.2 | (56.5 | ) | (42.7 | ) | (28.2 | ) | ||||||||||||||
Net
income attributable to noncontrolling interests, net of depreciation and
income tax
|
(5.4 | ) | (7.3 | ) | (1.4 | ) | (11.4 | ) | (39.2 | ) | (3.3 | ) | ||||||||||||
Non-cash
commodity derivative mark-to-market
|
(0.3 | ) | (154.3 | ) | (154.3 | ) | 53.5 | 44.4 | 44.4 | |||||||||||||||
Other,
net
|
0.2 | (0.1 | ) | (0.2 | ) | 0.5 | 1.5 | 0.6 | ||||||||||||||||
Adjusted
EBITDA
|
30.2 | 17.8 | 13.6 | 102.8 | 97.2 | 76.2 | ||||||||||||||||||
Interest
expense, net
|
(7.1 | ) | (6.5 | ) | (6.6 | ) | (21.1 | ) | (18.8 | ) | (19.2 | ) | ||||||||||||
Maintenance
capital expenditures, net of reimbursable projects
|
(1.0 | ) | (2.3 | ) | (1.6 | ) | (9.9 | ) | (5.3 | ) | (3.5 | ) | ||||||||||||
Distributions
from equity method investments, net of earnings
|
(0.9 | ) | 2.6 | 4.3 | (0.5 | ) | 6.6 | 11.2 | ||||||||||||||||
Other
|
— | 2.4 | 2.5 | 0.5 | 2.3 | 2.7 | ||||||||||||||||||
Distributable
cash flow
|
$ | 21.2 | $ | 14.0 | $ | 12.2 | $ | 71.8 | $ | 82.0 | $ | 67.4 |
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||||||||||
2009
|
2008
|
As Reported
in 2008
|
2009
|
2008
|
As Reported
in 2008
|
|||||||||||||||||||
(Millions,
except as indicated)
|
||||||||||||||||||||||||
Natural
Gas Services Segment:
|
||||||||||||||||||||||||
Financial
results:
|
||||||||||||||||||||||||
Segment
net income attributable to partners
|
$ | 20.8 | $ | 170.1 | $ | 165.5 | $ | 1.8 | $ | 35.6 | $ | 13.3 | ||||||||||||
Non-cash
commodity derivative mark-to-market
|
0.3 | (154.1 | ) | (154.1 | ) | 54.2 | 47.1 | 47.1 | ||||||||||||||||
Depreciation
and amortization expense
|
15.8 | 12.3 | 8.1 | 45.1 | 36.7 | 24.3 | ||||||||||||||||||
Noncontrolling
interest on depreciation and income tax
|
(2.9 | ) | (2.3 | ) | (0.2 | ) | (8.1 | ) | (7.2 | ) | (0.6 | ) | ||||||||||||
Adjusted
segment EBITDA
|
$ | 34.0 | $ | 26.0 | $ | 19.3 | $ | 93.0 | $ | 112.2 | $ | 84.1 | ||||||||||||
Operating
and financial data:
|
||||||||||||||||||||||||
Natural
gas throughput (MMcf/d)
|
1,111 | 816 | 704 | 1,071 | 926 | 797 | ||||||||||||||||||
NGL
gross production (Bbls/d)
|
30,843 | 24,824 | 18,783 | 27,086 | 29,409 | 22,241 | ||||||||||||||||||
Operating
and maintenance expense
|
$ | 16.1 | $ | 17.5 | $ | 7.9 | $ | 43.8 | $ | 49.0 | $ | 23.7 | ||||||||||||
Wholesale
Propane Logistics Segment:
|
||||||||||||||||||||||||
Financial
results:
|
||||||||||||||||||||||||
Segment
net income (loss) attributable to partners
|
$ | 2.4 | $ | (1.3 | ) | $ | (1.3 | ) | $ | 28.2 | $ | 5.2 | $ | 5.2 | ||||||||||
Non-cash
commodity derivative mark-to-market
|
(0.6 | ) | (0.2 | ) | (0.2 | ) | (0.7 | ) | (2.7 | ) | (2.7 | ) | ||||||||||||
Depreciation
and amortization expense
|
0.3 | 0.3 | 0.3 | 1.0 | 0.9 | 0.9 | ||||||||||||||||||
Adjusted
segment EBITDA
|
$ | 2.1 | $ | (1.2 | ) | $ | (1.2 | ) | $ | 28.5 | $ | 3.4 | $ | 3.4 | ||||||||||
Operating
and financial data:
|
||||||||||||||||||||||||
Propane
sales volume (Bbls/d)
|
12,435 | 11,445 | 11,445 | 21,146 | 19,934 | 19,934 | ||||||||||||||||||
Operating
and maintenance expense
|
$ | 2.5 | $ | 1.9 | $ | 1.9 | $ | 7.6 | $ | 7.3 | $ | 7.3 | ||||||||||||
NGL
Logistics Segment:
|
||||||||||||||||||||||||
Financial
results:
|
||||||||||||||||||||||||
Segment
net income attributable to partners
|
$ | 1.7 | $ | 1.1 | $ | 1.1 | $ | 3.8 | $ | 4.4 | $ | 4.4 | ||||||||||||
Depreciation
and amortization expense
|
0.3 | 0.4 | 0.4 | 1.1 | 1.1 | 1.1 | ||||||||||||||||||
Adjusted
segment EBITDA
|
$ | 2.0 | $ | 1.5 | $ | 1.5 | $ | 4.9 | $ | 5.5 | $ | 5.5 | ||||||||||||
Operating
and financial data:
|
||||||||||||||||||||||||
NGL
pipelines throughput (Bbls/d)
|
32,417 | 31,881 | 31,881 | 27,745 | 32,681 | 32,681 | ||||||||||||||||||
Operating
and maintenance expense
|
$ | 0.4 | $ | 0.4 | $ | 0.4 | $ | 0.9 | $ | 0.8 | $ | 0.8 |