DELAWARE
|
001-32678
|
03-0567133
|
(State
or other jurisdiction of
|
(Commission
File Number)
|
(IRS
Employer
|
incorporation)
|
Identification
No.)
|
Exhibit
Number
|
Description
|
|
Exhibit
99.1
|
Press
Release dated May 7, 2008
|
Exhibit
Number
|
Description
|
|
Exhibit
99.1
|
Press
Release dated May 7, 2008
|
May
7, 2008
|
MEDIA
AND INVESTOR RELATIONS CONTACT:
|
Karen
L. Taylor
|
Phone:
|
303/633-2913
|
|
24-Hour:
|
303/809-9160
|
·
|
Strong
processing margins and throughput volumes drive
performance
|
·
|
Distribution
increased to $0.59 per unit, up 27 percent over first quarter
2007
|
·
|
Sponsor
plans to offer to sell its 75 percent interest in East Texas joint
venture
to the Partnership
|
·
|
Net
loss of $6.5 million, or a loss of $0.33 per limited partner unit
in the
first quarter of 2008, as compared to net income of $15.8 million,
or
income of $0.58 per limited partner unit in the first quarter of
2007;
and
|
·
|
Distributable
cash flow, a non-generally accepted accounting principles (“non-GAAP”)
financial measure, of $32.1 million in the first quarter of 2008,
as
compared to $20.8 million in the first quarter of
2007.
|
·
|
Our
distributable cash flow for the first quarter of 2008 provided
1.6 times
the amount required for the Partnership to cover its current distribution
to both the general and limited
partners.
|
· |
financial
performance of our assets without regard to financing methods, capital
structure or historical cost basis;
|
· |
our
operating performance and return on capital as compared to those
of other
companies in the midstream energy industry, without regard to financing
methods or capital structure; and
|
· |
viability
of acquisitions and capital expenditure projects and the overall
rates of
return on alternative investment
opportunities.
|
·
|
the
level and success of natural gas drilling around our assets and our
ability to connect supplies to our gathering and processing systems
in
light of competition;
|
·
|
our
ability to grow through acquisitions or organic growth projects,
and the
successful integration and future performance of such
assets;
|
·
|
our
ability to access the debt and equity
markets;
|
·
|
fluctuations
in oil, natural gas, propane and other NGL prices;
|
·
|
our
ability to purchase propane from our principal suppliers for our
wholesale
propane logistics business;
and
|
·
|
the
credit worthiness of counterparties to our transactions.
|
Three
Months Ended
March
31,
|
|||||||
2008
|
2007
|
||||||
($
in millions, except per unit data)
|
|||||||
Sales
of natural gas, propane, NGLs and condensate
|
$
|
362.7
|
$
|
232.9
|
|||
Transportation,
processing, and other
|
12.1
|
7.3
|
|||||
Losses
from commodity derivative activity, net
|
(37.1
|
)
|
(3.0
|
)
|
|||
Total
operating revenues
|
337.7
|
237.2
|
|||||
Purchases
of natural gas, propane and NGLs
|
329.7
|
210.9
|
|||||
Gross
margin
|
8.0
|
26.3
|
|||||
Operating
and maintenance expense
|
(10.6
|
)
|
(6.6
|
)
|
|||
General
and administrative expense
|
(5.5
|
)
|
(4.8
|
)
|
|||
Earnings
from equity method investments
|
17.2
|
6.4
|
|||||
Non-controlling
interest in income
|
(0.6
|
)
|
—
|
||||
EBITDA
|
8.5
|
21.3
|
|||||
Depreciation
and amortization expense
|
(8.5
|
)
|
(3.4
|
)
|
|||
Interest
income
|
1.6
|
1.7
|
|||||
Interest
expense
|
(8.1
|
)
|
(3.8
|
)
|
|||
Net
(loss) income
|
$
|
(6.5
|
)
|
$
|
15.8
|
||
Less:
|
|||||||
Net
income attributable to predecessor operations
|
—
|
(3.3
|
)
|
||||
General
partner interest in net income
|
(1.7
|
)
|
(0.3
|
)
|
|||
Net
(loss) income allocable to limited partners
|
$
|
(8.2
|
)
|
$
|
12.2
|
||
Net
(loss) income per limited partner unit—basic and diluted
|
$
|
(0.33
|
)
|
$
|
0.58
|
||
Weighted-average
limited partner units outstanding—basic and diluted
|
24.9
|
17.7
|
Three
Months Ended
March
31,
|
|||||||
2008
|
2007
|
||||||
($
in millions)
|
|||||||
Natural
Gas Services Segment:
|
|||||||
Financial
data:
|
|||||||
Segment
gross margin
|
$
|
(2.5
|
)
|
$
|
14.2
|
||
Earnings
from equity method investments
|
$
|
16.8
|
$
|
6.2
|
|||
Operating
data:
|
|||||||
Natural
gas throughput (MMcf/d)
|
829
|
701
|
|||||
NGL
gross production (Bbls/d)
|
25,191
|
19,117
|
|||||
Wholesale
Propane Logistics Segment:
|
|||||||
Financial
data:
|
|||||||
Segment
gross margin
|
$
|
8.6
|
$
|
10.8
|
|||
Operating
data:
|
|||||||
Propane
sales volume (Bbls/d)
|
33,914
|
35,358
|
|||||
NGL
Logistics Segment:
|
|||||||
Financial
data:
|
|||||||
Segment
gross margin
|
$
|
1.9
|
$
|
1.3
|
|||
Earnings
from equity method investments
|
$
|
0.4
|
$
|
0.2
|
|||
Operating
data:
|
|||||||
NGL
pipelines throughput (Bbls/d)
|
31,876
|
27,458
|
Three
Months Ended
March
31,
|
|||||||
2008
|
2007
|
||||||
($
in millions)
|
|||||||
Reconciliation
of net cash provided by operating activities to distributable
cash
flow:
|
|||||||
Net
cash provided by operating activities
|
$
|
25.1
|
$
|
19.8
|
|||
Maintenance
capital expenditures, net of reimbursable projects
|
(0.5
|
)
|
(0.6
|
)
|
|||
Non-cash
derivative mark-to-market
|
28.6
|
3.0
|
|||||
Net
changes in operating assets and liabilities
|
(21.0
|
)
|
(1.9
|
)
|
|||
Other,
net
|
(0.1
|
)
|
0.5
|
||||
Distributable
cash flow
|
$
|
32.1
|
$
|
20.8
|
|||
Reconciliation
of net (loss) income to EBITDA:
|
|||||||
Net
(loss) income
|
$
|
(6.5
|
)
|
$
|
15.8
|
||
Interest
income
|
(1.6
|
)
|
(1.7
|
)
|
|||
Interest
expense
|
8.1
|
3.8
|
|||||
Depreciation
and amortization expense
|
8.5
|
3.4
|
|||||
EBITDA
|
$
|
8.5
|
$
|
21.3
|
|||
Reconciliation
of net cash provided by operating activities to
EBITDA:
|
|||||||
Net
cash provided by operating activities
|
$
|
25.1
|
$
|
19.8
|
|||
Interest
income
|
(1.6
|
)
|
(1.7
|
)
|
|||
Interest
expense
|
8.1
|
3.8
|
|||||
Earnings
from equity method investments, net of distributions
|
(2.0
|
)
|
0.8
|
||||
Net
changes in operating assets and liabilities
|
(21.0
|
)
|
(1.9
|
)
|
|||
Other,
net
|
(0.1
|
)
|
0.5
|
||||
EBITDA
|
$
|
8.5
|
$
|
21.3
|
Three
Months Ended
March
31,
|
|||||||
2008
|
2007
|
||||||
($
in millions)
|
|||||||
Reconciliation
of segment net (loss) income to segment gross
margin:
|
|||||||
Natural
Gas Services Segment:
|
|||||||
Segment
net (loss) income
|
$
|
(1.8
|
)
|
$
|
14.2
|
||
Operating
and maintenance expense
|
7.7
|
3.3
|
|||||
Depreciation
and amortization expense
|
7.8
|
2.9
|
|||||
Non-controlling
interest in income
|
0.6
|
—
|
|||||
Earnings
from equity method investments
|
(16.8
|
)
|
(6.2
|
)
|
|||
Segment
gross margin
|
$
|
(2.5
|
)
|
$
|
14.2
|
||
Wholesale
Propane Logistics Segment:
|
|||||||
Segment
net income
|
$
|
5.6
|
$
|
7.4
|
|||
Operating
and maintenance expense
|
2.7
|
3.2
|
|||||
Depreciation
and amortization expense
|
0.3
|
0.2
|
|||||
Segment
gross margin
|
$
|
8.6
|
$
|
10.8
|
|||
NGL
Logistics Segment:
|
|||||||
Segment
net income
|
$
|
1.7
|
$
|
1.1
|
|||
Operating
and maintenance expense
|
0.2
|
0.1
|
|||||
Depreciation
and amortization expense
|
0.4
|
0.3
|
|||||
Earnings
from equity method investments
|
(0.4
|
)
|
(0.2
|
)
|
|||
Segment
gross margin
|
$
|
1.9
|
$
|
1.3
|