UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of
1934
Date
of Report (Date of earliest event reported): February 21,
2007
DCP
MIDSTREAM PARTNERS, LP
(Exact
name of registrant as specified in its charter)
|
DELAWARE
|
001-32678
|
03-0567133
|
|
(State
or other jurisdiction of
|
(Commission
File Number)
|
(IRS
Employer
|
|
incorporation)
|
Identification
No.)
|
370
17th Street, Suite 2775
Denver,
Colorado 80202
(Address
of principal executive offices) (Zip Code)
Registrant’s
telephone number, including area code (303)
633-2900
(Former
name or former address, if changed since last report.)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
£ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
£ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
£ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
£ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
2.02 Results of Operations and Financial Condition.
On
February 21, 2007, DCP Midstream Partners, LP announced its financial results
for the three and twelve months ended December 31, 2006 pursuant to a press
release. A copy of the press release is furnished as Exhibit 99.1 to this
Current Report on Form 8-K, and is incorporated herein by
reference.
In
accordance with General Instruction B.2 of Form 8-K, the press release shall
not
be deemed “filed” for the purpose of Section 18 of the Exchange Act of 1934, as
amended, or otherwise subject to the liabilities of that section, nor shall
such
information and Exhibit be deemed incorporated by reference into any filing
under the Securities Act of 1933 or Exchange Act of 1934, each as amended,
except as shall be expressly set forth by specific reference in such
filing.
Item
9.01 Financial Statements and Exhibits.
(d) Exhibits.
|
Exhibit
Number
|
Description
|
|
|
Exhibit
99.1
|
Press
Release dated February 21, 2007
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| 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 | ||
February
21, 2007
EXHIBIT
INDEX
|
Exhibit
Number
|
Description
|
|
|
Exhibit
99.1
|
Press
Release dated February 21, 2007
|
|
February
21, 2007
|
MEDIA
AND
INVESTOR
RELATIONS
CONTACT:
|
Karen
Taylor
|
|
Phone:
|
303/633-2913
|
|
|
24-Hour:
|
303/809-9160
|
DCP
MIDSTREAM PARTNERS REPORTS FOURTH QUARTER AND YEAR END 2006
RESULTS
DENVER
-
DCP Midstream Partners, LP (NYSE: DPM) today reported financial results for
the
three and twelve months ended December 31, 2006. On December 7, 2005, DCP
Midstream Partners, LP (the Partnership) completed its initial public offering
of common units. Earnings for periods prior to the date of the initial public
offering are attributable to predecessor operations, which consists of
subsidiaries and assets of DCP Midstream, LLC (formerly Duke Energy Field
Services, LLC) the owner of the Partnership’s general partner, which were
contributed to the Partnership. In November 2006 the Partnership completed
the
acquisition of Gas Supply Resources (GSR) from DCP Midstream, LLC. The results
of operations include the historical results of GSR for all periods presented.
Earnings for periods prior to the acquisition of GSR are allocated to
predecessor operations.
For
the
three months ended December 31, 2006, the Partnership reported net income of
$10.6 million, or $0.55 per limited partner unit, compared to $19.2 million
for
the same period in 2005. For the year ended December 31, 2006, the Partnership
reported net income of $33.0 million, or $1.90 per limited partner unit,
compared to $44.5 million for the same period in 2005.
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2
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On January 24, 2007, the board of directors of the Partnership’s general partner declared a $0.025 increase in the quarterly distribution to $0.43 per limited partner unit, equating to a prospective annual distribution of $1.72 per limited partner unit. The new distribution rate represents a 22.9 percent increase over the minimum quarterly distribution of $0.35 per unit set forth in the prospectus in connection with the Partnership’s initial public offering in December 2005. The Partnership’s distributable cash flow for the three months ended December 31, 2006 was $13.0 million, or 1.7 times the amount required to cover its current distribution rate to the general and limited partners. The Partnership’s distributable cash flow for the year ended December 31, 2006 was $44.0 million, or 1.6 times the amount required to cover its current distribution rate to the general and limited partners. These distributable cash flow figures are partially attributable to predecessor earnings for both the three months and year ended December 31, 2006.
Distributable
cash flow, which is a non-generally accepted accounting principles (“non-GAAP”)
financial measure, is explained in greater detail under “Non-GAAP Financial
Information” below and is reconciled from net cash provided by operating
activities, its most comparable GAAP financial measure, in “Reconciliation of
Non-GAAP Measures” below.
“We
are
pleased to report that the Partnership’s first full year of operations was a
successful one, capturing value through executing a disciplined strategy, and
generating in excess of 45% total return to our unitholders. Our North Louisiana
gas services business generated strong results and we expanded the gathering
system for the increased drilling activity. We constructed and placed into
service our Wilbreeze pipeline in our NGL services segment. Finally we entered
a
new business line on November 1, when we closed on the acquisition of Gas Supply
Resources, our wholesale propane logistics business. As previously announced,
we
will expand our footprint in 2007 with the approximately $250 million
acquisition from our general partner at the end of the second quarter.”
EBITDA
for the fourth quarter of 2006 was $15.6 million, compared to $25.8 million
in
the corresponding 2005 period. The decrease is primarily attributable to lower
marketing margins across the Pelico intrastate pipeline system explained further
in the Natural Gas Services segment discussion.
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EBITDA
for the year ended December 31, 2006 was $51.0 million, compared to $60.8
million in the corresponding 2005 period. The decrease was primarily due to
lower marketing margins, higher general and administrative expenses, and lower
unit margins for our Wholesale Propane Logistics segment, partially offset
by
higher margin from the ethane to natural gas processing spread, higher
condensate and NGL prices and throughput at our natural gas processing plants.
General and administrative expenses increased $6.8 million for the year ended
December 31, 2006 as compared to the same period in 2005 due primarily to higher
public company and labor and benefit costs.
EBITDA,
which is a non-GAAP financial measure, is explained in greater detail under
“Non-GAAP Financial Information” below and is reconciled from net income and net
cash provided by operating activities, its most comparable GAAP financial
measures, in “Reconciliation of Non-GAAP Measures” below.
OPERATING
RESULTS BY BUSINESS SEGMENT
Natural
Gas Services -
-
Segment gross margin decreased $8.2 million to $19.4 million for the three
months ended December 31, 2006, from $27.6 million for the same period of 2005.
During the fourth quarter of 2005, the Partnership was able to benefit from
higher marketing margins and increased throughput related to atypical and
significant differences in natural gas prices at various receipt and delivery
points on the Partnership’s Pelico intrastate pipeline system. These price
differences followed supply disruptions from hurricanes on the Gulf Coast in
August and September of 2005. The Partnership was able to capture additional
upside in 2006, but not to the extent realized in 2005. Segment gross margin
increased $3.9 million to $75.3 million for the year ended December 31, 2006
from $71.4 million for the same period in 2005. The increase is primarily
attributable to higher NGL and condensate prices, favorable ethane to natural
gas processing margins, and increased natural gas throughput volumes, partially
offset by decreased marketing margins.
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Wholesale
Propane Logistics
- -
Segment gross margin increased $0.9 million to $6.9 million for the three months
ended December 31, 2006 from $6.0 million for the same period in 2005 due
primarily to greater unit margins, partially offset by decreased volumes.
Segment gross margin decreased $5.8 million to $16.0 million for the year ended
December 31, 2006 from $21.8 million for the same period in 2005 due primarily
to lower unit margins and volumes. Unit margins were impacted by lower spot
sales in 2006 resulting from milder weather and a non-cash adjustment to record
inventory at the lower of cost or market.
NGL
Logistics
- -
Segment gross margin related to our Seabreeze pipeline was $0.9 million for
the
three months ended December 31, 2006 compared to $1.1 million for the same
period in 2005 primarily due to changes in contract mix. Segment gross margin
for the year ended December 31, 2006 was $4.1 million, compared to $3.8 million
for the same period in 2005. This increase is due primarily to increased
volumes. Operating expenses increased $0.8 million for the three months and
$1.4
million for the year ended December 31, 2006 compared to the same periods in
2005 primarily due to increased pipeline integrity testing costs.
Gross
margin and segment gross margin, which are non-GAAP financial measures, are
explained in greater detail under “Non-GAAP Financial Information” below and are
reconciled from net income and segment net income, their most comparable GAAP
financial measures, in “Reconciliation of Non-GAAP Measures” below.
EARNINGS
CALL
DCP
Midstream Partners will hold its quarterly conference call to discuss fourth
quarter and year end results February 22, 2007 at 11 a.m. ET. The dial-in number
for the call is 800-659-2056 in the United States or 617-614-2714 outside the
United States, pass code 35283304. 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 for seven days by dialing 888-286-8010, in
the
United States or 617-801-6888 outside the United States, pass code 31947456.
A
replay and transcript of the broadcast will also be available on the company’s
Web site.
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NON-GAAP
FINANCIAL INFORMATION
This
press release and the accompanying financial schedules include the non-generally
accepted accounting principles (“non-GAAP”) financial measures of EBITDA, gross
margin, segment gross margin and distributable cash flow. The accompanying
schedules provide reconciliations of these non-GAAP financial measures to their
most directly comparable financial measures calculated and presented in
accordance with accounting principles generally accepted in the United States
of
America (“GAAP”). Our non-GAAP financial measures should not be considered an
alternative to, or more meaningful than, net income, operating income, cash
flows from operating activities or any other measure of financial performance
presented in accordance with GAAP as measures of operating performance,
liquidity or ability to service debt obligations and make cash distributions
to
unitholders.
We
define
EBITDA as net income less interest income plus interest expense, income tax
expense and depreciation and amortization expense. EBITDA is used as a
supplemental liquidity measure by our management and 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 capital expenditures.
Our EBITDA may not be comparable to a similarly titled measure of another
company because other entities may not calculate EBITDA in the same manner.
EBITDA
is
also used as a supplemental performance measure by our management and by
external users of our financial statements, such as investors, commercial banks,
research analysts and others, to assess:
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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.
|
We
define
gross margin as total operating revenues less purchases of natural gas, propane
and NGLs, and we define segment gross margin for each segment as total operating
revenues for that segment less commodity purchases for that segment. Our gross
margin equals the sum of our segment gross margins. Gross margin is included
as
a supplemental disclosure because it is a primary performance measure used
by
management as it represents the results of product sales and purchases, a key
component of our operations. Our gross margin may not be comparable to a
similarly titled measure of other companies because other entities may not
calculate gross margin in the same manner.
We
define
distributable cash flow as EBITDA, plus interest income, less interest expense,
earnings from equity method investments, maintenance capital expenditures,
net
of reimbursable projects, and adjustments for non-cash hedge ineffectiveness.
Maintenance
capital expenditures are capital expenditures made to replace partially or
fully
depreciated assets, to maintain the existing operating capacity of our assets
and to extend their useful lives, or other capital expenditures that are
incurred in maintaining existing system volumes and related cash flows. Non-cash
hedge ineffectiveness refers to the ineffective portion of our cash flow hedges,
which is recorded in earnings in the current period. This amount is considered
to be non-cash for the purpose of computing distributable cash 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 measure by our management and
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.
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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.
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. Among the key risk factors that may have a direct bearing on the
Partnership’s results of operations and financial condition are:
|
·
|
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 or organic growth
projects
|
|
·
|
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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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.
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-
FINANCIAL
RESULTS
(Unaudited)
|
Three
Months Ended
December
31,
|
Year
Ended
December
31,
|
||||||||||||
|
2006
|
2005
|
2006
|
2005
|
||||||||||
|
($
in millions, except per unit data)
|
|||||||||||||
|
Sales
of natural gas, propane, NGLs and condensate
|
$
|
200.0
|
$
|
386.7
|
$
|
767.9
|
$
|
1,122.1
|
|||||
|
Transportation
and processing services
|
7.4
|
6.3
|
27.8
|
23.1
|
|||||||||
|
Gains
(losses) from non-trading derivative activity
|
0.1
|
(0.6
|
)
|
0.1
|
(0.9
|
)
|
|||||||
|
Total
operating revenues
|
207.5
|
392.4
|
795.8
|
1,144.3
|
|||||||||
|
Purchases
of natural gas, propane and NGLs
|
180.3
|
357.7
|
700.4
|
1,047.3
|
|||||||||
|
Gross
margin
|
27.2
|
34.7
|
95.4
|
97.0
|
|||||||||
|
Operating
and maintenance expense
|
(6.4
|
)
|
(4.8
|
)
|
(23.7
|
)
|
(22.4
|
)
|
|||||
|
General
and administrative expense
|
(5.4
|
)
|
(4.1
|
)
|
(21.0
|
)
|
(14.2
|
)
|
|||||
|
Earnings
from equity method investments
|
0.2
|
—
|
0.3
|
0.4
|
|||||||||
|
EBITDA
|
15.6
|
25.8
|
51.0
|
60.8
|
|||||||||
|
Depreciation
and amortization expense
|
(3.2
|
)
|
(3.1
|
)
|
(12.8
|
)
|
(12.7
|
)
|
|||||
|
Interest
income
|
1.6
|
0.5
|
6.3
|
0.5
|
|||||||||
|
Interest
expense
|
(3.4
|
)
|
(0.8
|
)
|
(11.5
|
)
|
(0.8
|
)
|
|||||
|
Income
before income taxes
|
10.6
|
22.4
|
33.0
|
47.8
|
|||||||||
|
Income
tax expense
|
—
|
(3.2
|
)
|
—
|
(3.3
|
)
|
|||||||
|
Net
income
|
10.6
|
19.2
|
33.0
|
44.5
|
|||||||||
|
Less:
|
|||||||||||||
|
Net
loss (income) attributable to predecessor operations
|
0.7
|
(14.5
|
)
|
2.3
|
(39.8
|
)
|
|||||||
|
General
partner interest in net income
|
(0.2
|
)
|
(0.1
|
)
|
(0.7
|
)
|
(0.1
|
)
|
|||||
|
Net
income allocable to limited partners
|
$
|
11.1
|
$
|
4.6
|
$
|
34.6
|
$
|
4.6
|
|||||
|
Net
income per limited partner unit—basic and diluted
|
$
|
0.55
|
$
|
0.20
|
$
|
1.90
|
$
|
0.20
|
|||||
|
Weighted
average limited partners’ units outstanding—basic and
diluted
|
17.6
|
17.5
|
17.5
|
17.5
|
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- 10 -
DCP
MIDSTREAM PARTNERS, LP
SEGMENT
FINANCIAL AND OPERATING DATA
(Unaudited)
|
|
Three
Months Ended
December
31,
|
Year
Ended
December
31,
|
|||||||||||
|
|
2006
|
2005
|
2006
|
2005
|
|||||||||
|
|
($
in millions)
|
||||||||||||
|
|
|
|
|
|
|||||||||
|
Natural
Gas Services Segment:
|
|
|
|
|
|||||||||
|
Financial
data:
|
|
|
|
|
|||||||||
|
Segment
gross margin
|
$
|
19.4
|
$
|
27.6
|
$
|
75.3
|
$
|
71.4
|
|||||
|
Operating
data:
|
|
|
|
|
|||||||||
|
Natural
gas throughput (MMcf/d)
|
395
|
400
|
385
|
356
|
|||||||||
|
NGL
gross production (Bbls/d)
|
5,425
|
3,734
|
5,273
|
4,543
|
|||||||||
|
|
|
|
|
|
|||||||||
|
Wholesale
Propane Logistics Segment:
|
|
|
|
|
|||||||||
|
Financial
data:
|
|
|
|
|
|||||||||
|
Segment
gross margin
|
$
|
6.9
|
$
|
6.0
|
$
|
16.0
|
$
|
21.8
|
|||||
|
Operating
data:
|
|
|
|
|
|||||||||
|
Propane
sales volume (Bbls/d)
|
22,981
|
25,235
|
20,759
|
22,356
|
|||||||||
|
|
|
|
|
|
|||||||||
|
NGL
Logistics Segment:
|
|
|
|
|
|||||||||
|
Financial
data:
|
|
|
|
|
|||||||||
|
Segment
gross margin
|
$
|
0.9
|
$
|
1.1
|
$
|
4.1
|
$
|
3.8
|
|||||
|
Operating
data:
|
|
|
|
|
|||||||||
|
NGL
pipeline throughput (Bbls/d)
|
20,783
|
17,176
|
19,946
|
15,797
|
|||||||||
|
Black
Lake throughput (Bbls/d)
|
5,800
|
4,097
|
5,094
|
4,768
|
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- 11
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DCP
MIDSTREAM PARTNERS, LP
RECONCILIATION
OF NON-GAAP MEASURES
(Unaudited)
|
Three
Months Ended
December
31,
|
Year
Ended
December
31,
|
||||||||||||
|
2006
|
2005
|
2006
|
2005
|
||||||||||
|
($
in millions)
|
|||||||||||||
|
Reconciliation
of segment net income to segment gross margin:
|
|||||||||||||
|
Natural
Gas Services segment:
|
|||||||||||||
|
Segment
net income
|
$
|
13.1
|
$
|
22.4
|
$
|
50.7
|
$
|
46.6
|
|||||
|
Add:
|
|||||||||||||
|
Depreciation
and amortization expense
|
2.9
|
2.5
|
11.1
|
10.8
|
|||||||||
|
Operating
and maintenance expense
|
3.4
|
2.7
|
13.5
|
14.0
|
|||||||||
|
Segment
gross margin
|
$
|
19.4
|
$
|
27.6
|
$
|
75.3
|
$
|
71.4
|
|||||
|
Wholesale
Propane Logistics segment:
|
|||||||||||||
|
Segment
net income
|
$
|
4.6
|
$
|
3.7
|
$
|
6.6
|
$
|
12.6
|
|||||
|
Add:
|
|||||||||||||
|
Depreciation
and amortization expense
|
0.1
|
0.2
|
0.8
|
1.0
|
|||||||||
|
Operating
and maintenance expense
|
2.2
|
2.1
|
8.6
|
8.2
|
|||||||||
|
Segment
gross margin
|
$
|
6.9
|
$
|
6.0
|
$
|
16.0
|
$
|
21.8
|
|||||
|
NGL
Logistics segment:
|
|||||||||||||
|
Segment
net income
|
$
|
0.1
|
$
|
0.7
|
$
|
1.9
|
$
|
3.1
|
|||||
|
Add:
|
|||||||||||||
|
Depreciation
and amortization expense
|
0.2
|
0.4
|
0.9
|
0.9
|
|||||||||
|
Operating
and maintenance expense
|
0.8
|
—
|
1.6
|
0.2
|
|||||||||
|
Less:
|
|||||||||||||
|
Earnings
from equity method investments
|
(0.2
|
)
|
—
|
(0.3
|
)
|
(0.4
|
)
|
||||||
|
Segment
gross margin
|
$
|
0.9
|
$
|
1.1
|
$
|
4.1
|
$
|
3.8
|
|||||
-
more
-
- 12 -
DCP
MIDSTREAM PARTNERS, LP
RECONCILIATION
OF NON-GAAP MEASURES — Continued
(Unaudited)
|
Three
Months Ended
|
Year
Ended
|
||||||
|
December
31, 2006
|
December
31, 2006
|
||||||
|
($
in millions)
|
|||||||
|
Reconciliation
of net income to EBITDA:
|
|||||||
|
Net
income
|
$
|
10.6
|
$
|
33.0
|
|||
|
Interest
income
|
(1.6
|
)
|
(6.3
|
)
|
|||
|
Interest
expense
|
3.4
|
11.5
|
|||||
|
Depreciation
and amortization expense
|
3.2
|
12.8
|
|||||
|
EBITDA
|
$
|
15.6
|
$
|
51.0
|
|||
|
Reconciliation
of net cash provided by operating activities to
EBITDA:
|
|||||||
|
Net
cash provided by operating activities
|
$
|
48.2
|
$
|
68.9
|
|||
|
Net
changes in operating assets and liabilities
|
(35.2
|
)
|
(25.8
|
)
|
|||
|
Other,
net
|
0.6
|
2.4
|
|||||
|
Interest
income
|
(1.6
|
)
|
(6.3
|
)
|
|||
|
Interest
expense
|
3.4
|
11.5
|
|||||
|
Earnings
from equity method investments
|
0.2
|
0.3
|
|||||
|
EBITDA
|
$
|
15.6
|
$
|
51.0
|
|||
|
Reconciliation
of net cash provided by operating activities to distributable cash
flow:
|
|||||||
|
Net
cash provided by operating activities
|
$
|
48.2
|
$
|
68.9
|
|||
|
Maintenance
capital expenditures, net of reimbursable projects
|
(0.5
|
)
|
(2.9
|
)
|
|||
|
Post
closing reimbursement from sponsor for maintenance capital
expenditures
|
—
|
1.1
|
|||||
|
Non-cash
hedge ineffectiveness
|
(0.1
|
)
|
0.3
|
||||
|
Net
changes in operating assets and liabilities
|
(35.2
|
)
|
(25.8
|
)
|
|||
|
Other,
net
|
0.6
|
2.4
|
|||||
|
Distributable
cash flow
|
$
|
13.0
|
$
|
44.0
|
|||
|
|
Three
Months Ended
|
Year
Ended
|
|||||
|
|
December
31, 2005
|
December
31, 2005
|
|||||
|
|
($
in millions)
|
||||||
|
Reconciliation
of net income to EBITDA:
|
|||||||
|
Net
income
|
$
|
19.2
|
$
|
44.5
|
|||
|
Interest
income
|
(0.5
|
)
|
(0.5
|
)
|
|||
|
Interest
expense
|
0.8
|
0.8
|
|||||
|
Income
tax expense
|
3.2
|
3.3
|
|||||
|
Depreciation
and amortization
|
3.1
|
12.7
|
|||||
|
EBITDA
|
$
|
25.8
|
$
|
60.8
|
|||
|
Reconciliation
of net cash provided by operating
activities
to EBITDA:
|
|||||||
|
Net
cash provided by operating activities
|
$
|
51.2
|
$
|
76.3
|
|||
|
Interest
income
|
(0.5
|
)
|
(0.5
|
)
|
|||
|
Interest
expense
|
0.8
|
0.8
|
|||||
|
Earnings
from equity method investments
|
—
|
0.4
|
|||||
|
Income
tax expense
|
3.2
|
3.3
|
|||||
|
Net
changes in operating assets and liabilities
|
(29.2
|
)
|
(19.9
|
)
|
|||
|
Other,
net
|
0.3
|
0.4
|
|||||
|
EBITDA
|
$
|
25.8
|
$
|
60.8
|
|||
###