Delaware
|
001-32678
|
03-0567133
|
(State
or other jurisdiction of incorporation)
|
(Commission
File No.)
|
(IRS
Employer Identification
No.)
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||||||||||
2009
|
2008
|
As Reported
in
2008
|
2009
|
2008
|
As Reported
in
2008
|
|||||||||||||||||||
(Millions)
|
(Millions)
|
|||||||||||||||||||||||
Net
cash provided by operating activities
|
$ | 20.8 | $ | 11.5 | $ | (12.4 | ) | $ | 51.3 | $ | 70.8 | $ | 12.7 |
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||||||||||
2009
|
2008
|
As Reported
in
2008
|
2009
|
2008
|
As Reported
in
2008
|
|||||||||||||||||||
(Millions)
|
(Millions)
|
|||||||||||||||||||||||
Natural
Gas Services Segment:
|
||||||||||||||||||||||||
Segment
net loss attributable to partners
|
$ | (32.1 | ) | $ | (141.6 | ) | $ | (150.4 | ) | $ | (19.0 | ) | $ | (134.5 | ) | $ | (152.2 | ) | ||||||
Wholesale
Propane Logistics Segment:
|
||||||||||||||||||||||||
Segment
net income attributable to partners
|
$ | 3.0 | $ | 0.9 | $ | 0.9 | $ | 25.8 | $ | 6.5 | $ | 6.5 | ||||||||||||
NGL
Logistics Segment:
|
||||||||||||||||||||||||
Segment
net income attributable to partners
|
$ | 1.1 | $ | 1.6 | $ | 1.6 | $ | 2.1 | $ | 3.3 | $ | 3.3 |
Exhibit Number
|
Description
|
|
99.1
|
Press
Release dated August 7, 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 August 7, 2009
|
|
·
|
Reported Earning
Unchanged
|
|
·
|
Delivers 1.0x distribution
coverage in the second quarter and 1.2x year to
date
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||||||||||
2009
|
2008
|
As
Reported in 2008
|
2009
|
2008
|
As
Reported in 2008
|
|||||||||||||||||||
(Unaudited)
(Millions,
except per unit amounts)
|
||||||||||||||||||||||||
Net
loss attributable to partners
|
$ | (42.1 | ) | $ | (153.1 | ) | $ | (159.3 | ) | $ | (21.0 | ) | $ | (153.0 | ) | $ | (165.8 | ) | ||||||
Net
loss per unit
|
$ | (1.41 | ) | $ | (5.67 | ) | $ | (5.67 | ) | $ | (0.86 | ) | $ | (6.36 | ) | $ | (6.36 | ) | ||||||
Adjusted
EBITDA*
|
$ | 32.4 | $ | 34.0 | $ | 25.9 | $ | 72.6 | $ | 79.4 | $ | 62.5 | ||||||||||||
Adjusted
net income attributable to partners*
|
$ | 12.1 | $ | 17.2 | $ | 11.0 | $ | 33.0 | $ | 45.9 | $ | 33.1 | ||||||||||||
Adjusted
net income per unit*
|
$ | 0.27 | $ | 0.28 | $ | 0.28 | $ | 0.91 | $ | 1.02 | $ | 1.02 | ||||||||||||
Distributable
cash flow*
|
$ | 23.2 | $ | 29.0 | $ | 23.2 | $ | 50.6 | $ | 68.0 | $ | 55.1 |
|
·
|
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 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
June
30,
|
Six
Months Ended
June
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
|
$ | 173.7 | $ | 510.8 | $ | 318.5 | $ | 430.8 | $ | 1,008.0 | $ | 681.2 | ||||||||||||
Transportation,
processing and other
|
24.2 | 20.8 | 14.0 | 44.5 | 40.0 | 26.1 | ||||||||||||||||||
Losses
from commodity derivative activity, net
|
(45.9 | ) | (187.3 | ) | (186.6 | ) | (38.9 | ) | (224.4 | ) | (223.7 | ) | ||||||||||||
Total
operating revenues
|
152.0 | 344.3 | 145.9 | 436.4 | 823.6 | 483.6 | ||||||||||||||||||
Purchases
of natural gas, propane and NGLs
|
(148.3 | ) | (446.4 | ) | (287.8 | ) | (365.2 | ) | (877.6 | ) | (617.5 | ) | ||||||||||||
Operating
and maintenance expense
|
(17.1 | ) | (19.3 | ) | (11.0 | ) | (33.3 | ) | (37.3 | ) | (21.6 | ) | ||||||||||||
Depreciation
and amortization expense
|
(16.3 | ) | (13.0 | ) | (9.0 | ) | (30.9 | ) | (25.7 | ) | (17.5 | ) | ||||||||||||
General
and administrative expense
|
(7.1 | ) | (7.8 | ) | (5.3 | ) | (15.7 | ) | (15.4 | ) | (10.8 | ) | ||||||||||||
Other
|
— | 1.5 | 1.5 | — | 1.5 | 1.5 | ||||||||||||||||||
Total operating costs and
expenses
|
(188.8 | ) | (485.0 | ) | (311.6 | ) | (445.1 | ) | (954.5 | ) | (665.9 | ) | ||||||||||||
Operating
loss
|
(36.8 | ) | (140.7 | ) | (165.7 | ) | (8.7 | ) | (130.9 | ) | (182.3 | ) | ||||||||||||
Interest
expense, net
|
(6.9 | ) | (5.9 | ) | (6.1 | ) | (14.0 | ) | (12.3 | ) | (12.6 | ) | ||||||||||||
Earnings
from equity method investments
|
3.7 | 7.1 | 13.4 | 2.6 | 17.8 | 30.6 | ||||||||||||||||||
Income
tax expense
|
— | (0.3 | ) | — | (0.1 | ) | (0.6 | ) | — | |||||||||||||||
Net
income attributable to noncontrolling interests
|
(2.1 | ) | (13.3 | ) | (0.9 | ) | (0.8 | ) | (27.0 | ) | (1.5 | ) | ||||||||||||
Net
loss attributable to partners
|
$ | (42.1 | ) | $ | (153.1 | ) | $ | (159.3 | ) | $ | (21.0 | ) | $ | (153.0 | ) | $ | (165.8 | ) | ||||||
Net
(income) loss attributable to predecessor operations
|
— | (6.2 | ) | — | 1.0 | (12.8 | ) | — | ||||||||||||||||
General
partner interest in net income or net loss
|
(2.7 | ) | (0.7 | ) | (0.7 | ) | (5.9 | ) | (3.4 | ) | (3.4 | ) | ||||||||||||
Net
loss allocable to limited partners
|
$ | (44.8 | ) | $ | (160.0 | ) | $ | (160.0 | ) | $ | (25.9 | ) | $ | (169.2 | ) | $ | (169.2 | ) | ||||||
Net
loss per limited partner unit—basic and diluted
|
$ | (1.41 | ) | $ | (5.67 | ) | $ | (5.67 | ) | $ | (0.86 | ) | $ | (6.36 | ) | $ | (6.36 | ) | ||||||
Weighted-average
limited partner units outstanding—basic and diluted
|
31.7 | 28.2 | 28.2 | 30.0 | 26.6 | 26.6 |
June
30,
2009
|
December
31,
2008
|
|||||||
(Millions)
|
||||||||
Cash
and cash equivalents
|
$ | 4.6 | $ | 61.9 | ||||
Other
current assets
|
117.3 | 153.5 | ||||||
Restricted
investments (a)
|
35.1 | 60.2 | ||||||
Property,
plant and equipment, net
|
973.9 | 882.7 | ||||||
Other
long-term assets
|
260.5 | 261.4 | ||||||
Total assets
|
$ | 1,391.4 | $ | 1,419.7 | ||||
Current
liabilities
|
$ | 130.5 | $ | 163.2 | ||||
Long-term
debt (a)
|
638.0 | 656.5 | ||||||
Other
long-term liabilities
|
57.4 | 37.2 | ||||||
Partners’
equity
|
351.6 | 395.1 | ||||||
Noncontrolling
interests
|
213.9 | 167.7 | ||||||
Total liabilities and
equity
|
$ | 1,391.4 | $ | 1,419.7 | ||||
(a) Long-term debt includes $35 million and $60 million outstanding on the term loan portion of our credit facility as of June 30, 2009 and December 31, 2008, respectively. These amounts are fully secured by restricted investments. |
Three
Months Ended
June
30,
|
Six
Months Ended
June
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
loss attributable to partners
|
$ | (42.1 | ) | $ | (153.1 | ) | $ | (159.3 | ) | $ | (21.0 | ) | $ | (153.0 | ) | $ | (165.8 | ) | ||||||
Interest
expense, net
|
6.9 | 5.9 | 6.1 | 14.0 | 12.3 | 12.6 | ||||||||||||||||||
Depreciation,
amortization and income tax expense, net of noncontrolling
interest
|
13.5 | 10.8 | 8.7 | 25.8 | 21.4 | 17.0 | ||||||||||||||||||
Non-cash
commodity derivative mark-to-market
|
54.1 | 170.4 | 170.4 | 53.8 | 198.7 | 198.7 | ||||||||||||||||||
Adjusted
EBITDA
|
32.4 | 34.0 | 25.9 | 72.6 | 79.4 | 62.5 | ||||||||||||||||||
Interest
expense, net
|
(6.9 | ) | (5.9 | ) | (6.1 | ) | (14.0 | ) | (12.3 | ) | (12.6 | ) | ||||||||||||
Depreciation,
amortization and income tax expense, net of noncontrolling
interest
|
(13.5 | ) | (10.8 | ) | (8.7 | ) | (25.8 | ) | (21.4 | ) | (17.0 | ) | ||||||||||||
Other
|
0.1 | (0.1 | ) | (0.1 | ) | 0.2 | 0.2 | 0.2 | ||||||||||||||||
Adjusted
net income attributable to partners
|
12.1 | 17.2 | 11.0 | 33.0 | 45.9 | 33.1 | ||||||||||||||||||
Maintenance
capital expenditures, net of reimbursable projects
|
(1.5 | ) | (2.2 | ) | (1.4 | ) | (8.9 | ) | (3.0 | ) | (1.9 | ) | ||||||||||||
Distributions
from equity method investments, net of losses and earnings,
respectively
|
(1.2 | ) | 3.3 | 4.9 | 0.4 | 4.0 | 6.9 | |||||||||||||||||
Depreciation
and amortization, net of noncontrolling interest
|
13.5 | 10.7 | 8.7 | 25.8 | 21.1 | 17.0 | ||||||||||||||||||
Proceeds
from divestiture of assets
|
0.3 | — | — | 0.3 | — | — | ||||||||||||||||||
Distributable
cash flow
|
$ | 23.2 | $ | 29.0 | $ | 23.2 | $ | 50.6 | $ | 68.0 | $ | 55.1 | ||||||||||||
Adjusted
net income attributable to partners
|
$ | 12.1 | $ | 17.2 | $ | 11.0 | $ | 33.0 | $ | 45.9 | $ | 33.1 | ||||||||||||
Net
(income) loss attributable to predecessor operations
|
— | (6.2 | ) | — | 1.0 | (12.8 | ) | — | ||||||||||||||||
General
partner interest in net income
|
(3.4 | ) | (3.0 | ) | (3.0 | ) | (6.6 | ) | (6.0 | ) | (6.0 | ) | ||||||||||||
Adjusted
net income allocable to limited partners
|
$ | 8.7 | $ | 8.0 | $ | 8.0 | $ | 27.4 | $ | 27.1 | $ | 27.1 | ||||||||||||
Adjusted
net income per unit
|
$ | 0.27 | $ | 0.28 | $ | 0.28 | $ | 0.91 | $ | 1.02 | $ | 1.02 | ||||||||||||
Net
cash provided by operating activities
|
$ | 20.8 | $ | 11.5 | $ | (12.4 | ) | $ | 51.3 | $ | 70.8 | $ | 12.7 | |||||||||||
Interest
expense, net
|
6.9 | 5.9 | 6.1 | 14.0 | 12.3 | 12.6 | ||||||||||||||||||
Distributions
from equity method investments, net of losses and earnings,
respectively
|
1.2 | (3.3 | ) | (4.9 | ) | (0.4 | ) | (4.0 | ) | (6.9 | ) | |||||||||||||
Net
changes in operating assets and liabilities
|
(46.4 | ) | (135.4 | ) | (132.4 | ) | (40.4 | ) | (168.1 | ) | (153.4 | ) | ||||||||||||
Net
income attributable to noncontrolling interests, net of depreciation and
income tax
|
(4.9 | ) | (15.8 | ) | (1.2 | ) | (6.0 | ) | (31.9 | ) | (2.0 | ) | ||||||||||||
Non-cash
commodity derivative mark-to-market
|
54.1 | 170.4 | 170.4 | 53.8 | 198.7 | 198.7 | ||||||||||||||||||
Other,
net
|
0.7 | 0.7 | 0.3 | 0.3 | 1.6 | 0.8 | ||||||||||||||||||
Adjusted
EBITDA
|
32.4 | 34.0 | 25.9 | 72.6 | 79.4 | 62.5 | ||||||||||||||||||
Interest
expense, net
|
(6.9 | ) | (5.9 | ) | (6.1 | ) | (14.0 | ) | (12.3 | ) | (12.6 | ) | ||||||||||||
Maintenance
capital expenditures, net of reimbursable projects
|
(1.5 | ) | (2.2 | ) | (1.4 | ) | (8.9 | ) | (3.0 | ) | (1.9 | ) | ||||||||||||
Distributions
from equity method investments, net of losses and earnings,
respectively
|
(1.2 | ) | 3.3 | 4.9 | 0.4 | 4.0 | 6.9 | |||||||||||||||||
Other
|
0.4 | (0.2 | ) | (0.1 | ) | 0.5 | (0.1 | ) | 0.2 | |||||||||||||||
Distributable
cash flow
|
$ | 23.2 | $ | 29.0 | $ | 23.2 | $ | 50.6 | $ | 68.0 | $ | 55.1 |
Three
Months Ended
June
30,
|
Six
Months Ended
June
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 loss attributable to partners
|
$ | (32.1 | ) | $ | (141.6 | ) | $ | (150.4 | ) | $ | (19.0 | ) | $ | (134.5 | ) | $ | (152.2 | ) | ||||||
Non-cash
commodity derivative mark-to-market
|
54.0 | 170.2 | 170.2 | 53.9 | 201.2 | 201.2 | ||||||||||||||||||
Depreciation
and amortization expense
|
15.4 | 12.4 | 8.4 | 29.3 | 24.4 | 16.2 | ||||||||||||||||||
Noncontrolling
interest on depreciation and income tax
|
(2.8 | ) | (2.5 | ) | (0.3 | ) | (5.2 | ) | (4.9 | ) | (0.5 | ) | ||||||||||||
Adjusted
segment EBITDA
|
$ | 34.5 | $ | 38.5 | $ | 27.9 | $ | 59.0 | $ | 86.2 | $ | 64.7 | ||||||||||||
Operating
and financial data:
|
||||||||||||||||||||||||
Natural
gas throughput (MMcf/d)
|
1,108 | 980 | 835 | 1,051 | 980 | 831 | ||||||||||||||||||
NGL
gross production (Bbls/d)
|
28,584 | 30,659 | 23,769 | 25,208 | 31,702 | 24,480 | ||||||||||||||||||
Operating
and maintenance expense
|
$ | 14.5 | $ | 16.4 | $ | 8.1 | $ | 27.7 | $ | 31.5 | $ | 15.8 | ||||||||||||
Wholesale
Propane Logistics Segment:
|
||||||||||||||||||||||||
Financial
results:
|
||||||||||||||||||||||||
Segment
net income attributable to partners
|
$ | 3.0 | $ | 0.9 | $ | 0.9 | $ | 25.8 | $ | 6.5 | $ | 6.5 | ||||||||||||
Non-cash
commodity derivative mark-to-market
|
0.1 | 0.2 | 0.2 | (0.1 | ) | (2.5 | ) | (2.5 | ) | |||||||||||||||
Depreciation
and amortization expense
|
0.4 | 0.3 | 0.3 | 0.7 | 0.6 | 0.6 | ||||||||||||||||||
Adjusted
segment EBITDA
|
$ | 3.5 | $ | 1.4 | $ | 1.4 | $ | 26.4 | $ | 4.6 | $ | 4.6 | ||||||||||||
Operating
and financial data:
|
||||||||||||||||||||||||
Propane
sales volume (Bbls/d)
|
13,912 | 14,442 | 14,442 | 25,502 | 24,178 | 24,178 | ||||||||||||||||||
Operating
and maintenance expense
|
$ | 2.4 | $ | 2.7 | $ | 2.7 | $ | 5.1 | $ | 5.4 | $ | 5.4 | ||||||||||||
NGL
Logistics Segment:
|
||||||||||||||||||||||||
Financial
results:
|
||||||||||||||||||||||||
Segment
net income attributable to partners
|
$ | 1.1 | $ | 1.6 | $ | 1.6 | $ | 2.1 | $ | 3.3 | $ | 3.3 | ||||||||||||
Depreciation
and amortization expense
|
0.4 | 0.3 | 0.3 | 0.8 | 0.7 | 0.7 | ||||||||||||||||||
Adjusted
segment EBITDA
|
$ | 1.5 | $ | 1.9 | $ | 1.9 | $ | 2.9 | $ | 4.0 | $ | 4.0 | ||||||||||||
Operating
and financial data:
|
||||||||||||||||||||||||
NGL
pipelines throughput (Bbls/d)
|
26,850 | 34,286 | 34,286 | 25,409 | 33,081 | 33,081 | ||||||||||||||||||
Operating
and maintenance expense
|
$ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.5 | $ | 0.4 | $ | 0.4 |