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 November 6, 2008
|
Exhibit
Number
|
Description
|
Exhibit
99.1
|
Press
Release dated November 6, 2008
|
November
6, 2008
|
MEDIA
AND
INVESTOR
RELATIONS
CONTACT:
|
Karen
L. Taylor
|
Phone:
|
303/633-2913
|
|
24-Hour:
|
303/809-9160
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
(unaudited)
(Millions,
except per unit amounts)
|
|||||||||||||
Net
income (loss)
|
$
|
152.7
|
$
|
7.5
|
$
|
(13.1
|
)
|
$
|
24.1
|
||||
Net
income (loss) per unit
|
$
|
2.97
|
$
|
0.29
|
$
|
(0.75
|
)
|
$
|
0.89
|
||||
Adjusted
EBITDA
|
$
|
13.8
|
$
|
27.2
|
$
|
77.0
|
$
|
72.6
|
|||||
Adjusted
net (loss) income
|
$
|
(1.6
|
)
|
$
|
12.4
|
$
|
31.5
|
$
|
44.0
|
||||
Adjusted
net (loss) income per unit
|
$
|
(0.16
|
)
|
$
|
0.51
|
$
|
0.87
|
$
|
1.75
|
·
|
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
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
(Millions,
except per unit amounts)
|
|||||||||||||
Sales
of natural gas, propane, NGLs and condensate
|
$
|
271.2
|
$
|
185.8
|
$
|
952.4
|
$
|
604.3
|
|||||
Transportation,
processing and other
|
13.6
|
8.9
|
39.7
|
23.7
|
|||||||||
Gains
(losses) from commodity derivative activity, net
|
142.0
|
(6.1
|
)
|
(81.7
|
)
|
(21.1
|
)
|
||||||
Total
operating revenues
|
426.8
|
188.6
|
910.4
|
606.9
|
|||||||||
Purchases
of natural gas, propane and NGLs
|
249.4
|
163.3
|
866.9
|
539.4
|
|||||||||
Gross
margin
|
177.4
|
25.3
|
43.5
|
67.5
|
|||||||||
Operating
and maintenance expense
|
(10.2
|
)
|
(8.1
|
)
|
(31.8
|
)
|
(21.0
|
)
|
|||||
General
and administrative expense
|
(6.0
|
)
|
(5.4
|
)
|
(16.8
|
)
|
(17.1
|
)
|
|||||
Other
|
-—
|
—
|
1.5
|
—
|
|||||||||
Earnings
from equity method investments
|
8.1
|
10.8
|
38.7
|
23.6
|
|||||||||
Non-controlling
interest in income
|
(1.2
|
)
|
(0.3
|
)
|
(2.7
|
)
|
(0.3
|
)
|
|||||
EBITDA
|
168.1
|
22.3
|
32.4
|
52.7
|
|||||||||
Depreciation
and amortization expense
|
(8.8
|
)
|
(7.9
|
)
|
(26.3
|
)
|
(15.8
|
)
|
|||||
Interest
income
|
1.7
|
1.2
|
5.1
|
3.7
|
|||||||||
Interest
expense
|
(8.3
|
)
|
(8.1
|
)
|
(24.3
|
)
|
(16.5
|
)
|
|||||
Net
income (loss)
|
$
|
152.7
|
$
|
7.5
|
$
|
(13.1
|
)
|
$
|
24.1
|
||||
Less:
|
|||||||||||||
Net
income attributable to predecessor operations
|
—
|
—
|
—
|
(3.6
|
)
|
||||||||
General
partner interest in net income or net loss
|
(4.9
|
)
|
(0.9
|
)
|
(7.1
|
)
|
(1.5
|
)
|
|||||
Net
income (loss) allocable to limited partners
|
$
|
147.8
|
$
|
6.6
|
$
|
(20.2
|
)
|
$
|
19.0
|
||||
Net
income (loss) per limited partner unit—basic and diluted
|
$
|
2.97
|
$
|
0.29
|
$
|
(0.75
|
)
|
$
|
0.89
|
||||
Weighted-average
limited partner units outstanding—basic and diluted
|
28.2
|
22.3
|
27.1
|
19.3
|
September
30,
2008
|
December
31,
2007
|
||||||
(Millions)
|
|||||||
Cash
and cash equivalents
|
$
|
23.5
|
$
|
24.5
|
|||
Other
current assets
|
126.0
|
194.0
|
|||||
Restricted
investments
|
221.1
|
100.5
|
|||||
Property,
plant and equipment, net
|
496.9
|
500.7
|
|||||
Other
assets
|
294.8
|
301.0
|
|||||
Total
assets
|
$
|
1,162.3
|
$
|
1,120.7
|
|||
Current
liabilities
|
$
|
126.8
|
$
|
219.6
|
|||
Long-term
debt
|
655.0
|
630.0
|
|||||
Other
liabilities
|
118.0
|
75.8
|
|||||
Non-controlling
interests
|
29.1
|
26.9
|
|||||
Total
partners’ equity
|
233.4
|
168.4
|
|||||
Total
liabilities and partners’ equity
|
$
|
1,162.3
|
$
|
1,120.7
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
(Millions,
except per unit amounts)
|
|||||||||||||
Reconciliation
of Non-GAAP Measures:
|
|||||||||||||
Net
income (loss)
|
$
|
152.7
|
$
|
7.5
|
$
|
(13.1
|
)
|
$
|
24.1
|
||||
Interest
income
|
(1.7
|
)
|
(1.2
|
)
|
(5.1
|
)
|
(3.7
|
)
|
|||||
Interest
expense
|
8.3
|
8.1
|
24.3
|
16.5
|
|||||||||
Depreciation
and amortization expense
|
8.8
|
7.9
|
26.3
|
15.8
|
|||||||||
EBITDA
|
168.1
|
22.3
|
32.4
|
52.7
|
|||||||||
Non-cash
derivative mark-to-market
|
(154.3
|
)
|
4.9
|
44.6
|
19.9
|
||||||||
Adjusted
EBITDA
|
13.8
|
27.2
|
77.0
|
72.6
|
|||||||||
Interest
income
|
1.7
|
1.2
|
5.1
|
3.7
|
|||||||||
Interest
expense
|
(8.3
|
)
|
(8.1
|
)
|
(24.3
|
)
|
(16.5
|
)
|
|||||
Depreciation
and amortization expense
|
(8.8
|
)
|
(7.9
|
)
|
(26.3
|
)
|
(15.8
|
)
|
|||||
Adjusted
net (loss) income
|
(1.6
|
)
|
12.4
|
31.5
|
44.0
|
||||||||
Maintenance
capital expenditures, net of reimbursable projects
|
(1.6
|
)
|
(0.8
|
)
|
(3.5
|
)
|
(1.7
|
)
|
|||||
Earnings
from equity method investments, net of distributions
|
4.3
|
(2.2
|
)
|
11.2
|
3.5
|
||||||||
Depreciation
and amortization expense
|
8.8
|
7.9
|
26.3
|
15.8
|
|||||||||
Proceeds
from divestiture of assets
|
2.5
|
—
|
2.5
|
—
|
|||||||||
Non-controlling
interest on depreciation
|
(0.2
|
)
|
—
|
(0.6
|
)
|
—
|
|||||||
Distributable
cash flow
|
$
|
12.2
|
$
|
17.3
|
$
|
67.4
|
$
|
61.6
|
|||||
Adjusted
net (loss) income
|
$
|
(1.6
|
)
|
$
|
12.4
|
$
|
31.5
|
$
|
44.0
|
||||
Less:
|
|||||||||||||
Net
income attributable to predecessor operations
|
—
|
—
|
—
|
(3.6
|
)
|
||||||||
General
partner interest in net income or net loss
|
(2.9
|
)
|
(0.9
|
)
|
(7.8
|
)
|
(1.8
|
)
|
|||||
Adjusted
net (loss) income allocable to limited partners
|
$
|
(4.5
|
)
|
$
|
11.5
|
$
|
23.7
|
$
|
38.6
|
||||
Adjusted
net (loss) income per unit
|
$
|
(0.16
|
)
|
$
|
0.51
|
$
|
0.87
|
$
|
1.75
|
||||
Net
cash provided by operating activities
|
$
|
42.0
|
$
|
26.3
|
$
|
54.7
|
$
|
66.1
|
|||||
Interest
income
|
(1.7
|
)
|
(1.2
|
)
|
(5.1
|
)
|
(3.7
|
)
|
|||||
Interest
expense
|
8.3
|
8.1
|
24.3
|
16.5
|
|||||||||
Earnings
from equity method investments, net of distributions
|
(4.3
|
)
|
2.2
|
(11.2
|
)
|
(3.5
|
)
|
||||||
Net
changes in operating assets and liabilities
|
125.2
|
(13.1
|
)
|
(28.2
|
)
|
(23.1
|
)
|
||||||
Other,
net
|
(1.4
|
)
|
—
|
(2.1
|
)
|
0.4
|
|||||||
EBITDA
|
168.1
|
22.3
|
32.4
|
52.7
|
|||||||||
Non-cash
derivative mark-to-market
|
(154.3
|
)
|
4.9
|
44.6
|
19.9
|
||||||||
Adjusted
EBITDA
|
13.8
|
27.2
|
77.0
|
72.6
|
|||||||||
Interest
income
|
1.7
|
1.2
|
5.1
|
3.7
|
|||||||||
Interest
expense
|
(8.3
|
)
|
(8.1
|
)
|
(24.3
|
)
|
(16.5
|
)
|
|||||
Maintenance
capital expenditures, net of reimbursable projects
|
(1.6
|
)
|
(0.8
|
)
|
(3.5
|
)
|
(1.7
|
)
|
|||||
Earnings
from equity method investments, net of distributions
|
4.3
|
(2.2
|
)
|
11.2
|
3.5
|
||||||||
Proceeds
from divestiture of assets
|
2.5
|
—
|
2.5
|
—
|
|||||||||
Non-controlling
interest on depreciation
|
(0.2
|
)
|
—
|
(0.6
|
)
|
—
|
|||||||
Distributable
cash flow
|
$
|
12.2
|
$
|
17.3
|
$
|
67.4
|
$
|
61.6
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
(Millions,
except as indicated)
|
|||||||||||||
Natural
Gas Services Segment:
|
|||||||||||||
Financial
results:
|
|||||||||||||
Segment
net income
|
$
|
165.5
|
$
|
19.2
|
$
|
13.3
|
$
|
42.9
|
|||||
Operating
and maintenance expense
|
7.9
|
5.4
|
23.7
|
12.6
|
|||||||||
Depreciation
and amortization expense
|
8.1
|
7.4
|
24.3
|
14.1
|
|||||||||
Earnings
from equity method investments
|
(7.8
|
)
|
(10.3
|
)
|
(37.8
|
)
|
(22.6
|
)
|
|||||
Non-controlling
interest in income
|
1.2
|
0.3
|
2.7
|
0.3
|
|||||||||
Segment
gross margin
|
174.9
|
22.0
|
26.2
|
47.3
|
|||||||||
Non-cash
derivative mark-to-market
|
(154.1
|
)
|
3.9
|
47.1
|
18.4
|
||||||||
Adjusted
segment gross margin
|
$
|
20.8
|
$
|
25.9
|
$
|
73.3
|
$
|
65.7
|
|||||
Operating
data:
|
|||||||||||||
Natural
gas throughput (MMcf/d)
|
704
|
770
|
797
|
735
|
|||||||||
NGL
gross production (Bbls/d)
|
18,783
|
22,570
|
22,241
|
21,083
|
|||||||||
Wholesale
Propane Logistics Segment:
|
|||||||||||||
Financial
results:
|
|||||||||||||
Segment
net (loss) income
|
$
|
(1.3
|
)
|
$
|
(0.9
|
)
|
$
|
5.2
|
$
|
8.0
|
|||
Operating
and maintenance expense
|
1.9
|
2.5
|
7.3
|
7.8
|
|||||||||
Depreciation
and amortization expense
|
0.3
|
0.3
|
0.9
|
0.7
|
|||||||||
Other
|
—
|
—
|
(1.5
|
)
|
—
|
||||||||
Segment
gross margin
|
0.9
|
1.9
|
11.9
|
16.5
|
|||||||||
Non-cash
derivative mark-to-market
|
(0.2
|
)
|
1.0
|
(2.7
|
)
|
1.5
|
|||||||
Adjusted
segment gross margin
|
$
|
0.7
|
$
|
2.9
|
$
|
9.2
|
$
|
18.0
|
|||||
Operating
data:
|
|||||||||||||
Propane
sales volume (Bbls/d)
|
11,445
|
13,014
|
19,934
|
21,539
|
|||||||||
NGL
Logistics Segment:
|
|||||||||||||
Financial
results:
|
|||||||||||||
Segment
net income
|
$
|
1.1
|
$
|
1.5
|
$
|
4.4
|
$
|
3.1
|
|||||
Operating
and maintenance expense
|
0.4
|
0.2
|
0.8
|
0.6
|
|||||||||
Depreciation
and amortization expense
|
0.4
|
0.2
|
1.1
|
1.0
|
|||||||||
Earnings
from equity method investments
|
(0.3
|
)
|
(0.5
|
)
|
(0.9
|
)
|
(1.0
|
)
|
|||||
Segment
gross margin
|
$
|
1.6
|
$
|
1.4
|
$
|
5.4
|
$
|
3.7
|
|||||
Operating
data:
|
|||||||||||||
NGL
pipelines throughput (Bbls/d)
|
31,881
|
30,837
|
32,681
|
28,890
|