DCP Midstream Partners Reports Solid Fourth Quarter and Year End 2009 Results
- Delivered 1.45x distribution coverage in the fourth quarter and 1.20x for the year
- Achieved investment grade credit rating
- Strategic acquisitions increase fee-based margins
DENVER, March 3 /PRNewswire-FirstCall/ -- DCP Midstream Partners, LP (NYSE: DPM), or the Partnership, today reported financial results for the three and twelve months ended December 31, 2009. The table below reflects 2009 and 2008 results on a consolidated basis and 2008 results as originally reported.
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FOURTH QUARTER AND YEAR END SUMMARY RESULTS(2)
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
As As
Reported Reported
2009 2008 in 2008 2009 2008 in 2008
---- ---- -------- ---- ---- --------
(Unaudited)
(Millions, except per unit amounts)
Net (loss)
income
attributable
to
partners $(8.0) $140.1 $138.8 $(19.1) $141.9 $125.7
Net (loss)
income
per limited
partner
unit $(0.35) $4.75 $4.75 $(0.99) $4.11 $4.11
Adjusted
EBITDA(1) $43.4 $14.1 $10.8 $146.2 $111.3 $87.0
Adjusted
net income
(loss)
attributable
to
partners(1) $22.1 $(5.5) $(6.8) $64.7 $40.9 $24.7
Adjusted
net income
(loss)
per limited
partner
unit(1) $0.56 $(0.34) $(0.34) $1.67 $0.47 $0.47
Distributable
cash
flow(1) $35.7 $12.7 $10.4 $107.5 $94.7 $77.8
(1) Denotes a financial measure not presented in accordance with U.S.
generally accepted accounting principles, or GAAP. Each such non-GAAP
financial measure is defined below under "Non-GAAP Financial
Information", and each is reconciled to its most directly comparable
GAAP financial measures under "Reconciliation of Non-GAAP Financial
Measures" below.
(2) In April 2009, the Partnership completed the acquisition of an
additional 25.1 percent interest in DCP East Texas Holdings, LLC, or
East Texas, from DCP Midstream, LLC ("DCP Midstream"), which results
in the Partnership owning a 50.1 percent interest in East Texas. Prior
to this transaction the Partnership accounted for its interest in East
Texas under the equity method. As a result of our owning in excess of
50 percent of East Texas, and because the transaction was between
entities under common control, we are required to present results of
operations, including all historical periods, on a consolidated basis.
In addition, results are presented as originally reported in 2008 for
comparative purposes.
Additionally, note that while the Partnership hedges the majority of its
commodity risk, the portion of East Texas owned by DCP Midstream is
unhedged. As such, the Partnership's consolidated results depict 75
percent of East Texas unhedged in all periods prior to the second quarter
of 2009 and 49.9 percent of East Texas unhedged for all periods subsequent
to the first quarter of 2009.
2009 HIGHLIGHTS
Our 2009 business plan had been predicated on navigating through a difficult operating environment. It has been a challenging year, but one that demonstrates our resiliency and our focus. We successfully delivered on the elements of our business plan.
-- We restored operations following: (1) the hurricanes at Discovery, (2)
pipeline integrity and system enhancement work to our Wyoming system,
and (3) the fire caused by the third party pipeline rupture at East
Texas.
-- We acquired an additional 25.1% interest in East Texas from DCP
Midstream, LLC, demonstrating the support of our sponsor.
-- We completed our organic expansion projects in East Texas, Discovery,
and the Piceance basin.
-- Throughout the challenging environment, we have continued to maintain
strong liquidity and credit metrics, and maintained our quarterly
distribution of $0.60 per unit.
In addition to executing our 2009 business plan commitments, we accomplished the following:
-- We closed a $45 million acquisition of fee-based natural gas gathering
and treating assets in Michigan. This bolt-on acquisition in our
footprint has assets that are in some cases already interconnected with
our existing assets, providing us with operating synergies and
consolidation opportunities.
-- We completed a public equity offering of 2,875,000 common units,
providing $69.5 million in net proceeds, which provides us with the
financial flexibility to continue to actively pursue growth
opportunities.
-- We received an investment grade rating of BBB-/Stable from Standard &
Poor's. The investment grade rating can provide us an advantage in terms
of cost of capital and access to capital markets.
-- In January 2010 we closed a $22 million fee-based acquisition of our 350
mile Wattenberg interstate NGL pipeline and announced a related $18
million expansion capital project which is expected to be completed in
early 2011. The pipeline originates in Colorado's Denver-Julesburg Basin
and delivers volumes from plants owned by DCP Midstream, the largest
gatherer and processor in the basin, to Bushton, Kansas.
Our distributable cash flow for the year was the highest since inception of the Partnership, reflecting strong performance from our wholesale propane and NGL logistics segments, the addition of our Michigan acquisitions, increased NGL production, and reduced operating costs, partially offset by lower gas throughput volumes at certain of our natural gas assets. Our steady performance in delivering on our commitments this year has enabled us to deliver a total return to our unitholders of 260%.
CEO PERSPECTIVE
"We finished the year strong, with record adjusted EBITDA and distributable cash flow, and with a series of accomplishments that position us well as we enter 2010," said Mark Borer, president and CEO of the Partnership. "Our diversified asset portfolio delivered distribution coverage of 1.45 times for the quarter and 1.20 times for the year. In the fourth quarter, we expanded our asset base in Michigan with a complementary acquisition, completed a successful equity offering, and achieved an investment grade credit rating from S&P, the latter marking a key milestone for the Partnership. Looking forward, we believe we are favorably positioned to capture additional growth opportunities."
CONSOLIDATED FINANCIAL RESULTS
Adjusted EBITDA increased from $14.1 million for the three months ended December 31, 2008, to $43.4 million for the three months ended December 31, 2009, reflecting strong performance from our wholesale propane and NGL logistics segments, increased NGL production and reduced operating costs, partially offset by lower gas throughput volumes at certain of our natural gas assets. Adjusted EBITDA in the fourth quarter of 2008 was significantly impacted by hurricanes and a non-cash write down of inventory for our wholesale propane business. Adjusted EBITDA increased from $111.3 million for the year ended December 31, 2008, to $146.2 million for the year ended December 31, 2009, reflecting the addition of our Michigan acquisition, strong performance from our wholesale propane and NGL logistics segments, and reduced operating costs, partially offset by the impacts of lower commodity prices and lower gas throughput volumes at certain of our natural gas assets. 2009 results include the impact from operational downtime at our Discovery and East Texas assets in the first quarter.
On January 26, 2010, the Partnership announced a quarterly distribution of $0.60 per limited partner unit, consistent with the prior quarter. Our distributable cash flow of $35.7 million for the three months ended December 31, 2009 provided a 1.45 times distribution coverage ratio for the quarter. Distributable cash flow of $107.5 million for the year ended December 31, 2009 provided a 1.20 times distribution coverage ratio.
OPERATING RESULTS BY BUSINESS SEGMENT
Natural Gas Services — Adjusted segment EBITDA increased from $25.3 million for the three months ended December 31, 2008, to $39.4 million for the three months ended December 31, 2009, reflecting increased NGL production and reduced operating costs, partially offset by lower gas throughput volumes at certain of our natural gas assets. Adjusted segment EBITDA in the fourth quarter of 2008 was significantly impacted by hurricanes.
Adjusted segment EBITDA was $132.4 million for the year ended December 31, 2009, as compared to $137.5 million for the year ended December 31, 2008. Results for 2009 include the impact from operational downtime at our Discovery and East Texas assets in the first quarter. Results for the first nine months of 2008 reflect a much stronger commodity price, drilling and processing environment than the same period in 2009, while the fourth quarter of 2008 was significantly impacted by hurricanes.
Segment operating and maintenance expense decreased $3.1 million for the three months ended December 31, 2009 and $8.3 million for the year ended December 31, 2009. The decrease in these expenses was driven by our cost reduction efforts, partially offset by the addition of our Michigan systems.
Wholesale Propane Logistics — Adjusted segment EBITDA increased from a $3.2 million loss for the three months ended December 31, 2008 to $9.3 million for the three months ended December 31, 2009. Results for the fourth quarter of 2008 include a non-cash accounting adjustment to reflect inventory carrying costs at the lower of cost or market price. For the year ended December 31, adjusted segment EBITDA increased from $0.2 million in 2008 to $37.8 million in 2009, reflecting an increase in unit margins, approximately $6.0 million of which is attributable to the sale of inventory that was previously written down, and a six percent increase in volumes.
NGL Logistics — Adjusted segment EBITDA increased from $1.4 million for the three months ended December 31, 2008, to $3.4 million for the three months ended December 31, 2009. Results for the quarter include volumes associated with a pipeline interconnect added in the third quarter of 2009. Adjusted segment EBITDA increased from $6.9 million for the year ended December 31, 2008, to $8.3 million for the year ended December 31, 2009, reflecting higher unit margins, partially offset by lower volumes. Volumes in 2009 were impacted by ethane rejection at certain connected processing plants in the first quarter.
CORPORATE AND OTHER
General and administrative expense decreases for the three and twelve months ended December 31, 2009 reflect our cost reduction efforts, partially offset by the addition of the Michigan systems. Increased depreciation and amortization expense for the three and twelve months ended December 31, 2009, reflect the acquisition of the Michigan systems and organic project spending.
COMMODITY DERIVATIVE ACTIVITY
The objective of our commodity risk management program is to protect downside risk in our distributable cash flow. We utilize mark-to-market accounting treatment for our commodity derivative instruments. Mark-to-market accounting rules require companies to record currently in earnings the difference between their contracted future derivative settlement prices and the forward prices of the underlying commodities at the end of the accounting period. Revaluing our commodity derivative instruments based on futures pricing at the end of the period creates an asset or liability and associated non-cash gain or loss. Realized gains or losses from cash settlement of the derivative contracts occur monthly as our physical commodity sales are realized or when we rebalance our portfolio. Non-cash gains or losses associated with the mark-to-market accounting treatment of our commodity derivative instruments do not affect our distributable cash flow.
For the three and twelve months ended December 31, 2009 derivative activity and total revenues included a non-cash loss of approximately $29.9 million and $83.4 million, respectively, and cash hedge settlements paid of $0.7 million and cash hedge settlements received of $16.6 million, respectively. This compares to a non-cash gain of $146.0 million and $101.6 million for the three and twelve months ended December 31, 2008, respectively, and cash hedge settlement receipts of $7.8 million and cash hedge settlement payments of $30.7 million for the three and twelve months ended December 31, 2008, respectively. While our earnings will continue to fluctuate as a result of the volatility in the commodity markets, our commodity derivative contracts mitigate a portion of the risk of weakening commodity prices thereby stabilizing distributable cash flows.
CAPITALIZATION
Our credit facility of $825 million is comprised of a revolver and term loan that mature in June 2012. At December 31, 2009, we had $603 million outstanding under our revolver. We also had $10 million outstanding under our term loan, fully secured by restricted investments serving as collateral. Due to the fully secured status of the term loan, balances outstanding are netted from total long-term debt to calculate our leverage ratio. Our leverage ratio pursuant to our credit facility for the quarter ended December 31, 2009, was approximately 3.7 times.
Our committed liquidity is comprised of available capacity under our revolver and the collateral securing our term loan that may be used to fund organic capital expenditures or acquisitions. Our available committed liquidity at December 31, 2009, was approximately $222 million.
We mitigate a substantial portion of our interest rate risk with interest rate swaps which reduce our exposure to market rate fluctuations by converting variable interest rates to fixed interest rates. As of December 31, 2009, we had $575 million of our revolver debt converted to fixed rates through June 2012. Our weighted average cost of debt under our revolving credit facility, including interest rate swaps, as of December 31, 2009, was 4.4 percent.
EARNINGS CALL
DCP Midstream Partners will hold a conference call to discuss fourth quarter and year end results on Thursday, March 4, 2010, at 10 a.m. ET. The dial-in number for the call is 800-860-2442 in the United States or 412-858-4600 outside the United States. A live Webcast of the call can be accessed on the investor information page of DCP Midstream Partners' Web site at http://www.dcppartners.com. The call will be available for replay until 9 a.m. ET on March 12, 2010, by dialing 877-344-7529, in the United States or 412-317-0088 outside the United States. The conference number is 437679. A replay and transcript of the broadcast will also be available on the Partnership's Web site.
NON-GAAP FINANCIAL INFORMATION
This press release and the accompanying financial schedules include the following non-GAAP financial measures: distributable cash flow, adjusted EBITDA, adjusted segment EBITDA, adjusted net income attributable to partners, and adjusted net income per unit. The accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures. Our non-GAAP financial measures should not be considered in isolation or as an alternative to our financial measures presented in accordance with GAAP, including net income or loss, net cash provided by or used in operating activities or any other measure of liquidity or financial performance presented in accordance with GAAP as a measure of operating performance, liquidity or ability to service debt obligations and make cash distributions to unitholders. The non-GAAP financial measures presented by us may not be comparable to similarly titled measures of other companies because they may not calculate their measures in the same manner.
We define distributable cash flow as net cash provided by or used in operating activities, less maintenance capital expenditures, net of reimbursable projects, plus or minus adjustments for non-cash mark-to-market of derivative instruments, proceeds from divestiture of assets, net income attributable to noncontrolling interest net of depreciation and income tax, net changes in operating assets and liabilities, and other adjustments to reconcile net cash provided by or used in operating activities. Maintenance capital expenditures are capital expenditures made where we add on to or improve capital assets owned, or acquire or construct new capital assets, if such expenditures are made to maintain, including over the long term, our operating capacity. Non-cash mark-to-market of derivative instruments is considered to be non-cash for the purpose of computing distributable cash flow because settlement will not occur until future periods, and will be impacted by future changes in commodity prices. Distributable cash flow is used as a supplemental liquidity and performance measure by our management and we believe by external users of our financial statements, such as investors, commercial banks, research analysts and others, to assess our ability to make cash distributions to our unitholders and our general partner.
We define adjusted EBITDA as net income or loss attributable to partners less interest income and non-cash commodity derivative gains, plus interest expense, income tax expense, depreciation and amortization expense and non-cash commodity derivative losses, adjusted for any noncontrolling interest on depreciation and amortization expense, and income tax expense. The commodity derivative non-cash losses and gains result from the marking to market of certain financial derivatives used by the Partnership for risk management purposes that we do not account for under the hedge method of accounting. These non-cash losses or gains may or may not be realized in future periods when the derivative contracts are settled, due to fluctuating commodity prices. We define adjusted segment EBITDA for each segment as segment net income or loss attributable to partners less interest income and non-cash commodity derivative gains for that segment, plus interest expense, income tax expense, depreciation and amortization expense and non-cash commodity derivative losses for that segment, adjusted for any noncontrolling interest on depreciation and amortization expense, and income tax expense for that segment. Our adjusted EBITDA equals the sum of our adjusted segment EBITDAs, plus general and administrative expense.
Adjusted EBITDA and adjusted segment EBITDA are used as supplemental liquidity and performance measures by our management and we believe by external users of our financial statements, such as investors, commercial banks, research analysts and others, to assess:
-- 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.
We define adjusted net income attributable to partners as net income attributable to partners, plus non-cash derivative losses, less non-cash derivative gains. Adjusted net income per unit is then calculated from adjusted net income attributable to partners. These non-cash derivative losses and gains result from the marking to market of certain financial derivatives used by the Partnership for risk management purposes that we do not account for under the hedge method of accounting. Adjusted net income attributable to partners and adjusted net income per unit are provided to illustrate trends in income excluding these non-cash derivative losses or gains, which may or may not be realized in future periods when derivative contracts are settled, due to fluctuating commodity prices.
ABOUT DCP MIDSTREAM PARTNERS
DCP Midstream Partners, LP (NYSE: DPM) is a midstream master limited partnership that gathers, processes, transports and markets natural gas and natural gas liquids and is a leading wholesale distributor of propane. DCP Midstream Partners, LP is managed by its general partner, DCP Midstream GP, LLC, which is wholly owned by DCP Midstream, LLC, a joint venture between Spectra Energy and ConocoPhillips. For more information, visit the DCP Midstream Partners, LP Web site at http://www.dcppartners.com.
CAUTIONARY STATEMENTS
This press release may contain or incorporate by reference forward-looking statements as defined under the federal securities laws regarding DCP Midstream Partners, LP, including projections, estimates, forecasts, plans and objectives. Although management believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond our control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, the Partnership's actual results may vary materially from what management anticipated, estimated, projected or expected.
The key risk factors that may have a direct bearing on the Partnership's results of operations and financial condition are described in detail in the Partnership's periodic reports most recently filed with the Securities and Exchange Commission, including its most recent Form 10-K. Investors are encouraged to closely consider the disclosures and risk factors contained in the Partnership's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Information contained in this press release is unaudited, and is subject to change.
DCP MIDSTREAM PARTNERS, LP
FINANCIAL RESULTS AND
SUMMARY BALANCE SHEET DATA
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
As As
Reported Reported
2009 2008 in 2008 2009 2008 in 2008
---- ---- --------- ---- ---- ---------
(Millions, except per unit amounts)
Sales of
natural gas,
propane, NGLs
and condensate $304.1 $275.0 $203.9 $913.0 $1,672.7 $1,156.3
Transportation,
processing
and other 26.5 25.8 17.5 95.2 86.1 57.2
(Losses) gains
from commodity
derivative
activity, net (30.3) 154.0 154.0 (65.8) 71.7 72.3
----- ----- ----- ----- ---- ----
Total
operating
revenues 300.3 454.8 375.4 942.4 1,830.5 1,285.8
Purchases of
natural gas,
propane and
NGLs (259.7) (252.6) (194.3) (776.2) (1,481.0) (1,061.2)
Operating and
maintenance
expense (17.4) (20.3) (11.2) (69.7) (77.4) (43.0)
Depreciation and
amortization
expense (17.6) (14.5) (10.2) (64.9) (53.2) (36.5)
General and
administrative
expense (8.7) (9.4) (7.2) (32.3) (33.3) (24.0)
Other - - - - 1.5 1.5
--- --- --- --- --- ---
Total
operating
costs and
expenses (303.4) (296.8) (222.9) (943.1) (1,643.4) (1,163.2)
------ ------ ------ ------ -------- --------
Operating
(loss) income (3.1) 158.0 152.5 (0.7) 187.1 122.6
Interest
expense, net (6.9) (7.9) (8.0) (28.0) (26.7) (27.2)
Earnings
(losses) from
unconsolidated
affiliates 7.5 (6.0) (4.4) 18.5 18.2 34.3
Income tax
expense (0.5) 0.1 (0.1) (0.6) (0.6) (0.1)
Net income
attributable to
noncontrolling
interests (5.0) (4.1) (1.2) (8.3) (36.1) (3.9)
---- ---- ---- ---- ----- ----
Net (loss)
income
attributable
to partners $(8.0) $140.1 $138.8 $(19.1) $141.9 $125.7
Net loss
(income)
attributable
to predecessor
operations - (1.3) - 1.0 (16.2) -
General partner
interest in
net income or
net loss (3.4) (4.7) (4.7) (12.7) (13.0) (13.0)
---- ---- ---- ----- ----- -----
Net (loss)
income allocable
to limited
partners $(11.4) $134.1 $134.1 $(30.8) $112.7 $112.7
====== ====== ====== ====== ====== ======
Net (loss)
income per
limited partner
unit-basic and
diluted $(0.35) $4.75 $4.75 $(0.99) $4.11 $4.11
====== ===== ===== ====== ===== =====
Weighted-average
limited partner
units
outstanding-basic
and diluted 32.9 28.2 28.2 31.2 27.4 27.4
==== ==== ==== ==== ==== ====
December 31, December 31,
2009 2008
---- ----
(Millions)
Cash and cash equivalents $2.1 $61.9
Other current assets 195.6 153.5
Restricted investments (a) 10.0 60.2
Property, plant and equipment, net 1,000.1 882.7
Other long-term assets 273.7 261.4
----- -----
Total assets $1,481.5 $1,419.7
======== ========
Current liabilities $191.1 $163.2
Long-term debt (a) 613.0 656.5
Other long-term liabilities 72.0 37.2
Partners' equity 377.7 395.1
Noncontrolling interests 227.7 167.7
----- -----
Total liabilities and equity $1,481.5 $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 December 31, 2009
and December 31, 2008, respectively. These amounts are fully secured
by restricted investments.
DCP MIDSTREAM PARTNERS, LP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
As As
Reported Reported
2009 2008 in 2008 2009 2008 in 2008
---- ---- --------- ---- ---- ---------
(Millions, except per unit amounts)
Reconciliation
of Non-GAAP
Financial
Measures:
Net (loss)
income
attributable
to partners $(8.0) $140.1 $138.8 $(19.1) $141.9 $125.7
Interest
expense, net 6.9 7.9 8.0 28.0 26.7 27.2
Depreciation,
amortization
and income
tax expense,
net of
noncontrolling
interest 14.6 12.1 10.0 53.9 44.3 35.7
Non-cash
commodity
derivative
mark-to-market 29.9 (146.0) (146.0) 83.4 (101.6) (101.6)
---- ------ ------ ---- ------ ------
Adjusted EBITDA 43.4 14.1 10.8 146.2 111.3 87.0
Interest
expense, net (6.9) (7.9) (8.0) (28.0) (26.7) (27.2)
Depreciation,
amortization and
income tax
expense, net of
noncontrolling
interest (14.6) (12.1) (10.0) (53.9) (44.3) (35.7)
Other 0.2 0.4 0.4 0.4 0.6 0.6
--- --- --- --- --- ---
Adjusted net
income (loss)
attributable
to partners 22.1 (5.5) (6.8) 64.7 40.9 24.7
Maintenance
capital
expenditures,
net of
reimbursable
projects (2.7) (8.0) (7.5) (12.6) (13.3) (11.0)
Distributions
from
unconsolidated
affiliates, net
of earnings 2.2 13.6 14.4 1.7 20.2 25.6
Depreciation
and amortization,
net of
noncontrolling
interest 14.1 12.2 9.9 53.4 44.0 35.6
Proceeds from
divestiture of
assets - 0.4 0.4 0.3 2.9 2.9
--- --- --- --- --- ---
Distributable
cash flow $35.7 $12.7 $10.4 $107.5 $94.7 $77.8
===== ===== ===== ====== ===== =====
Adjusted net
income (loss)
attributable
to partners $22.1 $(5.5) $(6.8) $64.7 $40.9 $24.7
Net (income)
loss
attributable
to predecessor
operations - (1.3) - 1.0 (16.2) -
General partner
interest in
net income or
net loss (3.7) (2.8) (2.8) (13.7) (11.7) (11.7)
---- ---- ---- ----- ----- -----
Adjusted net
income (loss)
allocable to
limited partners $18.4 $(9.6) $(9.6) $52.0 $13.0 $13.0
===== ===== ===== ===== ===== =====
Adjusted net
income (loss) per
unit $0.56 $(0.34) $(0.34) $1.67 $0.47 $0.47
===== ====== ====== ===== ===== =====
Net cash provided
by operating
activities $12.8 $56.6 $46.8 $107.9 $177.6 $101.5
Interest expense,
net 6.9 7.9 8.0 28.0 26.7 27.2
Distributions
from
unconsolidated
affiliates, net
of earnings (2.2) (13.6) (14.4) (1.7) (20.2) (25.6)
Net changes in
operating assets
and liabilities 4.0 115.8 118.0 (52.5) 73.1 89.8
Net income
attributable to
noncontrolling
interests, net
of depreciation
and income tax (8.5) (6.4) (1.5) (19.9) (45.6) (4.8)
Non-cash
commodity
derivative
mark-to-market 29.9 (146.0) (146.0) 83.4 (101.6) (101.6)
Other, net 0.5 (0.2) (0.1) 1.0 1.3 0.5
--- ---- ---- --- --- ---
Adjusted EBITDA 43.4 14.1 10.8 146.2 111.3 87.0
Interest
expense, net (6.9) (7.9) (8.0) (28.0) (26.7) (27.2)
Maintenance
capital
expenditures,
net of
reimbursable
projects (2.7) (8.0) (7.5) (12.6) (13.3) (11.0)
Distributions
from
unconsolidated
affiliates, net
of earnings 2.2 13.6 14.4 1.7 20.2 25.6
Other (0.3) 0.9 0.7 0.2 3.2 3.4
---- --- --- --- --- ---
Distributable
cash flow $35.7 $12.7 $10.4 $107.5 $94.7 $77.8
===== ===== ===== ====== ===== =====
DCP MIDSTREAM PARTNERS, LP
SEGMENT FINANCIAL RESULTS AND OPERATING DATA
AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
As As
Reported Reported
2009 2008 in 2008 2009 2008 in 2008
---- ---- --------- ---- ---- ---------
(Millions, except as indicated)
Natural Gas
Services Segment:
Financial results:
Segment net
(loss) income
attributable
to partners $(3.9) $160.1 $156.9 $(2.1) $195.7 $170.2
Non-cash
commodity
derivative
mark-to-
market 30.0 (146.3) (146.3) 84.2 (99.2) (99.2)
Depreciation
and
amortization
expense 16.8 13.8 9.5 61.9 50.5 33.8
Noncontrolling
interest on
depreciation
and income
tax (3.5) (2.3) (0.3) (11.6) (9.5) (0.9)
---- ---- ---- ----- ---- ----
Adjusted segment
EBITDA $39.4 $25.3 $19.8 $132.4 $137.5 $103.9
===== ===== ===== ====== ====== ======
Operating and
financial data:
Natural gas
throughput
(MMcf/d) 1,083 1,068 954 1,072 961 838
NGL gross
production
(Bbls/d) 33,578 23,773 15,911 28,831 28,000 20,659
Operating
and
maintenance
expense $14.4 $17.5 $8.4 $58.2 $66.5 $32.1
Wholesale Propane
Logistics Segment:
Financial results:
Segment net
income (loss)
attributable
to partners $9.0 $(3.9) $(3.9) $37.2 $1.3 $1.3
Non-cash
commodity
derivative
mark-to-
market (0.1) 0.3 0.3 (0.8) (2.4) (2.4)
Depreciation
and
amortization
expense 0.4 0.4 0.4 1.4 1.3 1.3
--- --- --- --- --- ---
Adjusted segment
EBITDA $9.3 $(3.2) $(3.2) $37.8 $0.2 $0.2
==== ===== ===== ===== ==== ====
Operating and
financial data:
Propane sales
volume
(Bbls/d) 25,673 24,411 24,411 22,278 21,053 21,053
Operating and
maintenance
expense $2.7 $2.6 $2.6 $10.3 $9.9 $9.9
NGL Logistics
Segment:
Financial results:
Segment net
income
attributable
to partners $3.1 $1.1 $1.1 $6.9 $5.5 $5.5
Depreciation
and
amortization
expense 0.3 0.3 0.3 1.4 1.4 1.4
--- --- --- --- --- ---
Adjusted segment
EBITDA $3.4 $1.4 $1.4 $8.3 $6.9 $6.9
==== ==== ==== ==== ==== ====
Operating and
financial data:
NGL pipelines
throughput
(Bbls/d) 37,403 27,583 27,583 30,160 31,407 31,407
Operating and
maintenance
expense $0.3 $0.2 $0.2 $1.2 $1.0 $1.0
SOURCE DCP Midstream Partners, LP
