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
|
incorporation)
|
Identification
No.)
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Exhibit
Number
|
Description
|
Exhibit
99.1
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Press
Release dated May 9, 2007
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Exhibit
Number
|
Description
|
Exhibit
99.1
|
Press
Release dated May 9, 2007
|
May
9, 2007
|
MEDIA
AND INVESTOR RELATIONS CONTACT:
|
Karen
Taylor
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Phone:
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303/633-2913
|
|
24-Hour:
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303/809-9160
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· |
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, asset contributions from our
parents, 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.
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Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
($
in millions,
except
per unit data)
|
|||||||
Sales
of natural gas, propane, NGLs and condensate
|
$
|
232.9
|
$
|
259.0
|
|||
Transportation
and processing services
|
7.3
|
6.5
|
|||||
Losses
from non-trading derivative activity
|
(0.1
|
)
|
(0.1
|
)
|
|||
Total
operating revenues
|
240.1
|
265.4
|
|||||
Purchases
of natural gas, propane and NGLs
|
210.9
|
241.9
|
|||||
Gross
margin
|
29.2
|
23.5
|
|||||
Operating
and maintenance expense
|
6.6
|
6.4
|
|||||
General
and administrative expense
|
4.8
|
4.7
|
|||||
Earnings
from equity method investments
|
0.2
|
—
|
|||||
EBITDA
|
18.0
|
12.4
|
|||||
Depreciation
and amortization expense
|
3.4
|
3.3
|
|||||
Interest
income
|
(1.7
|
)
|
(1.5
|
)
|
|||
Interest
expense
|
3.8
|
2.6
|
|||||
Net
income
|
$
|
12.5
|
$
|
8.0
|
|||
Less:
|
|||||||
Net
income attributable to predecessor operations
|
—
|
(2.6
|
)
|
||||
General
partner interest in net income
|
(0.3
|
)
|
(0.1
|
)
|
|||
Net
income allocable to limited partners
|
$
|
12.2
|
$
|
5.3
|
|||
Net
income per limited partner unit—basic and diluted
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$
|
0.58
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$
|
0.30
|
|||
Weighted
average limited partner units outstanding—basic and
diluted
|
17.7
|
17.5
|
|||||
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
($
in millions)
|
|||||||
Natural
Gas Services Segment:
|
|||||||
Financial
data:
|
|||||||
Segment
gross margin
|
$
|
17.1
|
$
|
17.0
|
|||
Operating
data:
|
|||||||
Natural
gas throughput (MMcf/d)
|
371
|
364
|
|||||
NGL
gross production (Bbls/d)
|
5,304
|
4,962
|
|||||
Wholesale
Propane Logistics Segment:
|
|||||||
Financial
data:
|
|||||||
Segment
gross margin
|
$
|
10.8
|
$
|
5.6
|
|||
Operating
data:
|
|||||||
Propane
sales volume (Bbls/d)
|
35,358
|
34,599
|
|||||
NGL
Logistics Segment:
|
|||||||
Financial
data:
|
|||||||
Segment
gross margin
|
$
|
1.3
|
$
|
0.9
|
|||
Operating
data:
|
|||||||
NGL
pipelines throughput (Bbls/d)
|
27,458
|
23,425
|
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
($
in millions)
|
|||||||
Reconciliation
of segment net income to segment gross margin:
|
|||||||
Natural
Gas Services segment:
|
|||||||
Segment
net income
|
$
|
10.9
|
$
|
10.1
|
|||
Add:
|
|||||||
Depreciation
and amortization expense
|
2.9
|
2.8
|
|||||
Operating
and maintenance expense
|
3.3
|
4.1
|
|||||
Segment
gross margin
|
$
|
17.1
|
$
|
17.0
|
|||
Wholesale
Propane Logistics segment:
|
|||||||
Segment
net income
|
$
|
7.4
|
$
|
3.2
|
|||
Add:
|
|||||||
Depreciation
and amortization expense
|
0.2
|
0.3
|
|||||
Operating
and maintenance expense
|
3.2
|
2.1
|
|||||
Segment
gross margin
|
$
|
10.8
|
$
|
5.6
|
|||
NGL
Logistics segment:
|
|||||||
Segment
net income
|
$
|
1.1
|
$
|
0.5
|
|||
Add:
|
|||||||
Depreciation
and amortization expense
|
0.3
|
0.2
|
|||||
Operating
and maintenance expense
|
0.1
|
0.2
|
|||||
Less:
|
|||||||
Earnings
from equity method investments
|
(0.2
|
)
|
—
|
||||
Segment
gross margin
|
$
|
1.3
|
$
|
0.9
|
|||
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
($
in millions)
|
|||||||
Reconciliation
of net income to EBITDA:
|
|||||||
Net
income
|
$
|
12.5
|
$
|
8.0
|
|||
Interest
income
|
(1.7
|
)
|
(1.5
|
)
|
|||
Interest
expense
|
3.8
|
2.6
|
|||||
Depreciation
and amortization expense
|
3.4
|
3.3
|
|||||
EBITDA
|
$
|
18.0
|
$
|
12.4
|
|||
Reconciliation
of net cash provided by operating activities to
EBITDA:
|
|||||||
Net
cash provided by operating activities
|
$
|
14.2
|
$
|
8.2
|
|||
Interest
income
|
(1.7
|
)
|
(1.5
|
)
|
|||
Interest
expense
|
3.8
|
2.6
|
|||||
Undistributed
earnings from equity method investments
|
0.2
|
—
|
|||||
Net
changes in operating assets and liabilities
|
1.0
|
2.4
|
|||||
Other,
net
|
0.5
|
0.7
|
|||||
EBITDA
|
$
|
18.0
|
$
|
12.4
|
|||
Reconciliation
of net cash provided by operating activities to distributable cash
flow:
|
|||||||
Net
cash provided by operating activities
|
$
|
14.2
|
$
|
8.2
|
|||
Maintenance
capital expenditures, net of reimbursable projects
|
(0.6
|
)
|
(1.4
|
)
|
|||
Non-cash
hedge ineffectiveness
|
—
|
0.4
|
|||||
Non-cash
derivative mark to market
|
(0.1
|
)
|
—
|
||||
Post
closing reimbursement from DCP Midstream, LLC for maintenance capital
expenditures
|
—
|
0.8
|
|||||
Net
changes in operating assets and liabilities
|
1.0
|
2.4
|
|||||
Other,
net
|
0.5
|
0.7
|
|||||
Distributable
cash flow
|
$
|
15.0
|
$
|
11.1
|
|||