DELAWARE
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001-32678
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03-0567133
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(State
or other jurisdiction of
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(Commission
File Number)
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(IRS
Employer
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incorporation)
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Identification
No.)
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Exhibit
Number
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Description
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Exhibit
99.1
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Press
Release dated February 20, 2008
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DCP
MIDSTREAM PARTNERS, LP
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By:
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DCP
MIDSTREAM GP, LP
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its
General Partner
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By:
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DCP
MIDSTREAM GP, LLC
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its
General Partner
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By:
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/s/
Michael S. Richards
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Name:
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Michael
S. Richards
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Title:
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Vice
President, General Counsel and
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Secretary
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Exhibit
Number
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Description
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Exhibit
99.1
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Press
Release dated February 20, 2008
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February
20, 2008
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MEDIA
AND INVESTOR RELATIONS CONTACT:
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Karen
L. Taylor
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Phone:
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303/633-2913
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24-Hour:
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303/809-9160
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·
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Strategic
acquisitions and strong operating results drive 33% distribution
increase
to unitholders in 2007
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·
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Net
loss of $39.9 million, or a loss of $1.69 per limited partner unit
in the
fourth quarter of 2007, as compared to net income of $15.6 million,
or
income of $0.55 per limited partner unit in the fourth quarter of
2006;
and
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·
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Distributable
cash flow, a non-generally accepted accounting principles (“non-GAAP”)
financial measure, of $25.1 million in the fourth quarter of 2007,
as
compared to $19.2 million in the fourth quarter of
2006.
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·
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Net
loss of $15.8 million, or a loss of $1.05 per limited partner unit
for the
year ended December 31, 2007, as compared to net income of $61.9
million,
or income of $1.90 per limited partner unit for the year ended December
31, 2006; and
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·
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Distributable
cash flow, a non-GAAP financial measure, of $86.7 million for the
year
ended December 31, 2007, as compared to $69.5 million for the year
ended
December 31, 2006.
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·
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financial
performance of our assets without regard to financing methods, capital
structure or historical cost basis;
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·
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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
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·
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viability
of acquisitions and capital expenditure projects and the overall
rates of
return on alternative investment
opportunities.
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·
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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;
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·
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our
ability to grow through acquisitions or organic growth projects,
and the
successful integration and future performance of such
assets;
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·
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our
ability to access the debt and equity
markets;
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·
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fluctuations
in oil, natural gas, propane and other NGL prices;
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·
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our
ability to purchase propane from our principal suppliers for our
wholesale
propane logistics business;
and
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·
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the
credit worthiness of counterparties to our transactions.
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Three
Months Ended
December
31,
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Year
Ended
December
31,
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||||||||||||
2007
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2006
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2007
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2006
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||||||||||
($
in millions, except per unit data)
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|||||||||||||
Sales
of natural gas, propane, NGLs and condensate
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$
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321.5
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$
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200.0
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$
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925.8
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$
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767.9
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|||||
Transportation
and processing services
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11.4
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7.4
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35.1
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27.8
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|||||||||
(Losses)
gains from non-trading derivative activity
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(66.5
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)
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0.1
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(87.6
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)
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0.1
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|||||||
Total
operating revenues
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266.4
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207.5
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873.3
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795.8
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|||||||||
Purchases
of natural gas, propane and NGLs
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287.3
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180.3
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826.7
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700.4
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|||||||||
Gross
margin
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(20.9
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)
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27.2
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46.6
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95.4
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||||||||
Operating
and maintenance expense
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(11.1
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)
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(6.4
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)
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(32.1
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)
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(23.7
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)
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|||||
General
and administrative expense
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(7.0
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)
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(5.4
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)
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(24.1
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)
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(21.0
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)
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|||||
Earnings
from equity method investments
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15.7
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5.2
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39.3
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29.2
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|||||||||
Non-controlling
interest in income
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(0.2
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)
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—
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(0.5
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)
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—
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|||||||
EBITDA
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(23.5
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)
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20.6
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29.2
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79.9
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||||||||
Depreciation
and amortization expense
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(8.6
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)
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(3.2
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)
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(24.4
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)
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(12.8
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)
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|||||
Interest
income
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1.6
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1.6
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5.3
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6.3
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|||||||||
Interest
expense
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(9.3
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)
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(3.4
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)
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(25.8
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)
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(11.5
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)
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|||||
Income
tax expense
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(0.1
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)
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—
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(0.1
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)
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—
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|||||||
Net
(loss) income
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$
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(39.9
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)
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$
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15.6
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$
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(15.8
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)
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$
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61.9
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|||
Less:
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|||||||||||||
Net
income attributable to predecessor operations
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—
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(4.3
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)
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(3.6
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)
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(26.6
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)
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||||||
General
partner interest in net income
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(0.7
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)
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(0.2
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)
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(2.2
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)
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(0.7
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)
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|||||
Net
(loss) income allocable to limited partners
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$
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(40.6
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)
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$
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11.1
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$
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(21.6
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)
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$
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34.6
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Net
(loss) income per limited partner unit—basic and diluted
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$
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(1.69
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)
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$
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0.55
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$
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(1.05
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)
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$
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1.90
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Weighted-average
limited partner units outstanding—basic and diluted
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24.0
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17.6
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20.5
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17.5
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Three
Months Ended
December
31,
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Year
Ended
December
31,
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||||||||||||
2007
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2006
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2007
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2006
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||||||||||
($
in millions)
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|||||||||||||
Natural
Gas Services Segment:
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|||||||||||||
Financial
data:
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|||||||||||||
Segment
gross margin
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$
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(31.1
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)
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$
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19.4
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$
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16.2
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$
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75.3
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||||
Earnings
from equity method investments
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$
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16.1
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$
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5.0
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$
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38.7
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$
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28.9
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|||||
Operating
data:
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Natural
gas throughput (MMcf/d)
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820
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682
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756
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666
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NGL
gross production (Bbls/d)
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25,237
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20,063
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22,122
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19,485
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Wholesale
Propane Logistics Segment:
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Financial
data:
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|||||||||||||
Segment
gross margin
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$
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9.0
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$
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6.9
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$
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25.5
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$
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16.0
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|||||
Operating
data:
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|||||||||||||
Propane
sales volume (Bbls/d)
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26,575
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22,989
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22,798
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21,259
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NGL
Logistics Segment:
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|||||||||||||
Financial
data:
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|||||||||||||
Segment
gross margin
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$
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1.2
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$
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0.9
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$
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4.9
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$
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4.1
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|||||
(Losses)
earnings from equity method investments
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$
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(0.4
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)
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$
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0.2
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$
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0.6
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$
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0.3
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||||
Operating
data:
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|||||||||||||
NGL
pipelines throughput (Bbls/d)
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29,172
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26,583
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28,961
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25,040
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Three
Months Ended
December
31,
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Year
Ended
December
31,
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||||||||||||
2007
|
2006
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2007
|
2006
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||||||||||
($
in millions)
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|||||||||||||
Reconciliation
of net cash (used in) provided by operating activities to distributable
cash flow:
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|||||||||||||
Net
cash (used in) provided by operating activities
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$
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(0.7
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)
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$
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54.6
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$
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65.4
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$
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94.8
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||||
Maintenance
capital expenditures, net of reimbursable projects
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(0.9
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)
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(0.5
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)
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(2.6
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)
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(2.9
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)
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|||||
Non-cash
derivative mark-to-market
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61.2
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(0.3
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)
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81.1
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(0.1
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)
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|||||||
Post
closing reimbursement from DCP Midstream, LLC for maintenance capital
expenditures
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—
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—
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—
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1.1
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|||||||||
Net
changes in operating assets and liabilities
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(33.8
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)
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(35.2
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)
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(56.9
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)
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(25.8
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)
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|||||
Other,
net
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(0.7
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)
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0.6
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(0.3
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)
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2.4
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|||||||
Distributable
cash flow
|
$
|
25.1
|
$
|
19.2
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$
|
86.7
|
$
|
69.5
|
|||||
Reconciliation
of net (loss) income to EBITDA:
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|||||||||||||
Net
(loss) income
|
$
|
(39.9
|
)
|
$
|
15.6
|
$
|
(15.8
|
)
|
$
|
61.9
|
|||
Interest
income
|
(1.6
|
)
|
(1.6
|
)
|
(5.3
|
)
|
(6.3
|
)
|
|||||
Interest
expense
|
9.3
|
3.4
|
25.8
|
11.5
|
|||||||||
Depreciation
and amortization expense
|
8.6
|
3.2
|
24.4
|
12.8
|
|||||||||
Income
tax expense
|
0.1
|
—
|
0.1
|
—
|
|||||||||
EBITDA
|
$
|
(23.5
|
)
|
$
|
20.6
|
$
|
29.2
|
$
|
79.9
|
||||
Reconciliation
of net cash (used in) provided by operating activities to
EBITDA:
|
|||||||||||||
Net
cash (used in) provided by operating activities
|
$
|
(0.7
|
)
|
$
|
54.6
|
$
|
65.4
|
$
|
94.8
|
||||
Interest
income
|
(1.6
|
)
|
(1.6
|
)
|
(5.3
|
)
|
(6.3
|
)
|
|||||
Interest
expense
|
9.3
|
3.4
|
25.8
|
11.5
|
|||||||||
Earnings
from equity method investments, net of distributions
|
3.9
|
(1.2
|
)
|
0.4
|
3.3
|
||||||||
Income
tax expense
|
0.1
|
—
|
0.1
|
—
|
|||||||||
Net
changes in operating assets and liabilities
|
(33.8
|
)
|
(35.2
|
)
|
(56.9
|
)
|
(25.8
|
)
|
|||||
Other,
net
|
(0.7
|
)
|
0.6
|
(0.3
|
)
|
2.4
|
|||||||
EBITDA
|
$
|
(23.5
|
)
|
$
|
20.6
|
$
|
29.2
|
$
|
79.9
|
Three
Months Ended
December
31,
|
Year
Ended
December
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
($
in millions)
|
|||||||||||||
Reconciliation
of segment net (loss) income to segment gross
margin:
|
|||||||||||||
Natural
Gas Services Segment:
|
|||||||||||||
Segment
net (loss) income
|
$
|
(31.3
|
)
|
$
|
18.1
|
$
|
11.6
|
$
|
79.6
|
||||
Depreciation
and amortization expense
|
7.8
|
2.9
|
21.9
|
11.1
|
|||||||||
Operating
and maintenance expense
|
8.3
|
3.4
|
20.9
|
13.5
|
|||||||||
Non-controlling
interest in income
|
0.2
|
—
|
0.5
|
—
|
|||||||||
Earnings
from equity method investments
|
(16.1
|
)
|
(5.0
|
)
|
(38.7
|
)
|
(28.9
|
)
|
|||||
Segment
gross margin
|
$
|
(31.1
|
)
|
$
|
19.4
|
$
|
16.2
|
$
|
75.3
|
||||
Wholesale
Propane Logistics Segment:
|
|||||||||||||
Segment
net income
|
$
|
6.0
|
$
|
4.6
|
$
|
14.0
|
$
|
6.6
|
|||||
Depreciation
and amortization expense
|
0.4
|
0.1
|
1.1
|
0.8
|
|||||||||
Operating
and maintenance expense
|
2.6
|
2.2
|
10.4
|
8.6
|
|||||||||
Segment
gross margin
|
$
|
9.0
|
$
|
6.9
|
$
|
25.5
|
$
|
16.0
|
|||||
NGL
Logistics Segment:
|
|||||||||||||
Segment
net income
|
$
|
0.2
|
$
|
0.1
|
$
|
3.3
|
$
|
1.9
|
|||||
Depreciation
and amortization expense
|
0.4
|
0.2
|
1.4
|
0.9
|
|||||||||
Operating
and maintenance expense
|
0.2
|
0.8
|
0.8
|
1.6
|
|||||||||
Losses
(earnings) from equity method investments
|
0.4
|
(0.2
|
)
|
(0.6
|
)
|
(0.3
|
)
|
||||||
Segment
gross margin
|
$
|
1.2
|
$
|
0.9
|
$
|
4.9
|
$
|
4.1
|