2013-02-27 22:02:28 -
News Release
www.dcppartners.com
MEDIA AND INVESTOR
RELATIONS CONTACT: Jonni Anwar
February 27, 2013 Phone: 303/605-1868
24-Hour: 303/887-5419
DCP MIDSTREAM PARTNERS ANNOUNCES $626MM EAGLE FORD DROPDOWN, ADDITIONAL ORGANIC
GROWTH, AND REPORTS FOURTH QUARTER AND YEAR END 2012 RESULTS
* With dropdown of additional interest in the Eagle Ford joint venture, DCP
Midstream Partners will have 80 percent interest in one of the largest
gathering and processing systems in prolific Eagle Ford shale play with 1.2
Bcf/d of total processing capacity
* Storage expansion project at Marysville providing incremental capacity to
the growing Marcellus/Utica production
* Record fourth quarter Adjusted EBITDA and Distributable Cash Flow
* Quarterly distribution increase in line with 2012 distribution growth
forecast
DENVER - DCP Midstream Partners, LP (NYSE: DPM), or the Partnership, today
reported financial results for the three and twelve months ended December
31, 2012. The table below reflects results for the three and twelve months ended
December 31, 2012 and 2011 on a consolidated basis and results for the 2011
periods as originally reported.
FOURTH QUARTER AND YEAR END SUMMARY RESULTS
Three Months Ended Year Ended
December 31,( (3)) December 31,( (3) (4))
As As
2012 2011 Reported 2012 2011 Reported
in 2011 in 2011
--------------------------------------------------
(Unaudited)
--------------------------------------------------
(Millions, except per unit amounts)
|
Net income (loss) |
attributable to |
partners((1)) $ 64.3 $ 4.6 $ (1.5)|$ 168.0 $ 120.8 $ 100.4
|
Net income (loss) per |
limited partner unit - |
basic((1)) $ 0.87 $ (0.19) $ (0.19)|$ 2.28 $ 1.73 $ 1.73
|
Net income (loss) per |
limited partner unit - |
diluted((1)) $ 0.87 $ (0.18) $ (0.18)|$ 2.28 $ 1.72 $ 1.72
|
Adjusted EBITDA((2)) $ 86.2 $ 42.1 $ 49.8|$ 251.9 $ 199.9 $ 179.4
|
Adjusted net income |
attributable to |
partners((2)) $ 61.9 $ 12.0 $ 24.4|$ 146.7 $ 80.9 $ 79.9
|
Adjusted net income per |
limited partner unit(2) |
- basic and diluted $ 0.83 $ 0.39 $ 0.39|$ 1.89 $ 1.26 $ 1.26
|
Distributable cash flow((2)) $ 67.6 ** $ 37.4|$ 179.9 ** $ 150.4
(1) Includes non-cash commodity derivative mark-to-market gains of $2.0
million and losses of $6.9 million for the three months ended December 31, 2012
and 2011, respectively, and gains of $21.3 million and $42.1 million for the
years ended December 31, 2012 and 2011, respectively.
(2) 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.
(3) In March 2012, the Partnership completed the contribution from DCP
Midstream, LLC ("DCP Midstream") of the remaining 66.67 percent interest in DCP
Southeast Texas Holdings, GP, in a transaction between entities under common
control. This transfer of net assets between entities under common control was
accounted for as if the transaction had occurred at the beginning of the period,
and prior years were retrospectively adjusted to furnish comparative information
similar to the pooling method. In addition, results are presented as originally
reported in 2011 under "As Reported in 2011" for comparative purposes.
(4) We recognized lower of cost or market adjustments during the years ended
December 31, 2012 and 2011.
** Distributable cash flow has not been calculated under the pooling method.
EAGLE FORD EXPANSION
The Partnership announced a $626 million immediately accretive dropdown from DCP
Midstream of an additional 47 percent interest in the Eagle Ford joint venture
bringing its ownership interest to 80 percent. This transaction is subject to
certain customary closing conditions and working capital and other purchase
price adjustments. In conjunction with the transaction, DCP Midstream will
provide a three-year direct commodity price hedge for the Partnership's
additional 47 percent interest.
In addition to the announced additional 47 percent Eagle Ford joint venture
dropdown, the Partnership also increased its interest in the Goliad Plant and
associated infrastructure to 80 percent with an estimated total investment of
$230 million by the Partnership. The Goliad Plant is a 200 MMcf/d processing
plant in the Eagle Ford system with an expected in service date in Q1 2014. The
plant is supported by long-term producer agreements. DCP Midstream will provide
a 27 month hedge associated with this organic project, commencing in January
2014, for the additional 47 percent interest in the Goliad Plant and related
infrastructure.
With this announced dropdown, the incremental ownership in the Goliad Plant and
the completion of the wholly-owned Eagle Plant, the Partnership will have an 80
percent interest in one of the largest gathering and processing systems in the
prolific Eagle Ford shale play.
The Eagle Ford system includes the following:
* five cryogenic processing plants with 760 MMcf/d processing capacity and
approximately 6,000 miles of gathering systems
* three fractionators with approximately 36,000 barrels per day capacity
* production from over 900,000 acres supported by acreage dedications or
throughput commitments under long-term predominantly percent-of-proceeds
agreements
* the newly constructed wholly-owned Eagle Plant with 200 MMcf/d of processing
capacity
* the Goliad Plant currently under construction with 200 MMcf/d of processing
capacity
The five existing plants, coupled with the Eagle and Goliad plants, will result
in 1.2 Bcf/d of processing capacity in the area and provide significant
incremental cash flow for the Partnership to support continued distribution
growth.
MARYSVILLE NGL STORAGE EXPANSION
The Partnership also announced a long-term ethane storage agreement with Nova
Chemical underpinning the expansion of our Marysville NGL storage facility. Our
expected investment is $25 million, which represents an attractive organic
growth opportunity for our NGL Logistics segment. This project provides much
needed incremental NGL storage capacity for the growing Marcellus/Utica
production. The expansion includes new ethane storage capacity of approximately
one million barrels. The expansion is expected to be in service Q4 2013.
PRESIDENT'S PERSPECTIVE
"We are pleased to report the Partnership's record Adjusted EBITDA for 2012 of
over $250 million despite a lower commodity price environment. Distribution
growth was in line with our 2012 forecast," said Bill Waldheim, president of the
Partnership. "We are very proud of what we accomplished in 2012 with the
continued execution of our growth strategy. During 2012, we completed over $1
billion of dropdowns from DCP Midstream as well as deployed approximately $400
million in organic growth and acquisitions. We are off to a strong start in
2013. Since the beginning of the year, we announced the incremental investments
in the Eagle Ford system and the Marysville storage project, all of which
position us well to meet our target to significantly increase the size of the
Partnership from 2012 to 2015."
2012 AND RECENT HIGHLIGHTS
In addition to achieving our distributable cash flow and distribution growth
forecast, we successfully delivered on the key elements of our 2012 business
plan.
* We provided sustainable quarterly distribution growth, which represents a 6
percent increase over the distribution rate paid in 2011.
* We continued executing our multi-faceted growth strategy, with an emphasis
on dropdowns from our general partner. Dropdowns completed in 2012 were over
$1 billion and included:
* the remaining 50 percent interest in East Texas
* the remaining two-thirds interest in Southeast Texas
* minority interests in two non-operated Mont Belvieu fractionators, and
* one-third interest in the Eagle Ford joint venture
* In addition to dropdowns, we continued to capture organic growth
opportunities and third-party acquisitions in 2012 including:
* ongoing construction of the 200 MMcf/d Goliad Plant located in the Eagle
Ford shale with a targeted in service date of Q1 2014
* construction of the 200 MMcf/d wholly owned Eagle Plant located in the
Eagle Ford shale
* acquisition of a minority interest in the Texas Express NGL pipeline
* acquisition of the Crossroads gathering and processing system in East
Texas, and
* ongoing construction of our Keathley Canyon project at Discovery
* Our strong capital markets execution in 2012 positions us well in terms of
both liquidity and cost of capital to execute on our growth plans.
In summary, our dropdown strategy with DCP Midstream, visible pipeline of
organic growth projects, as well as strong financial results position us well to
becoming a large scale diversified midstream company.
CONSOLIDATED FINANCIAL RESULTS
Adjusted EBITDA for the three months ended December 31, 2012 increased to $86
million from $42 million for the three months ended December 31, 2011. Adjusted
EBITDA for the year ended December 31, 2012 increased to $252 million from $200
million for the year ended December 31, 2011.
On January 28, 2013, we announced a quarterly distribution of $0.69 per limited
partner unit. This represents an increase of 1.5 percent over the last quarterly
distribution and an increase of 6 percent over the distribution declared in the
fourth quarter of 2011. Our distributable cash flow of $68 million for the three
months ended December 31, 2012 provided a 1.3 times distribution coverage ratio
adjusted for the timing of actual distributions paid during the quarter. Our
distributable cash flow of $180 million for the twelve months ended December
31, 2012 provided a 1.0 times distribution coverage ratio adjusted for the
timing of actual distributions paid during the year.
OPERATING RESULTS BY BUSINESS SEGMENT
Natural Gas Services - Adjusted segment EBITDA increased to $51 million for the
three months ended December 31, 2012 from $33 million for the three months ended
December 31, 2011. These results reflect the dropdown of the one-third interest
in the Eagle Ford joint venture, the dropdown of the remaining 50 percent
interest in East Texas and the Crossroads system acquisition, partially offset
by lower commodity prices and a planned turnaround at East Texas.
Adjusted segment EBITDA increased to $213 million for the year ended December
31, 2012 from $176 million for the year ended December 31, 2011, reflecting the
dropdown of a one-third interest in the Eagle Ford joint venture, the addition
of the remaining 50 percent interest in East Texas, the Crossroads system
acquisition, and higher results in natural gas storage, partially offset by
lower commodity prices.
NGL Logistics - Adjusted segment EBITDA increased to $20 million for the three
months ended December 31, 2012 from $10 million for the three months ended
December 31, 2011, reflecting the July 2012 acquisition of the Mont Belvieu
fractionators and higher throughput on our pipelines.
Adjusted segment EBITDA increased to $59 million for the year ended December
31, 2012 from $37 million for the year ended December 31, 2011, reflecting the
acquisition of the Mont Belvieu fractionators, higher throughput on our
pipelines, as well as growth from the Wattenberg pipeline expansion project and
the full year results for the DJ Basin fractionators acquired in March 2011.
Wholesale Propane Logistics - Adjusted segment EBITDA increased to $27 million
for the three months ended December 31, 2012 from $12 million for the three
months ended December 31, 2011, reflecting a significant recovery of the non-
cash lower of cost or market inventory adjustment recorded in the second quarter
of 2012.
Adjusted segment EBITDA decreased to $26 million for the year ended December
31, 2012 from $36 million for the year ended December 31, 2011 as a result of a
lack of demand due to the industry's excess inventory resulting from record warm
weather last heating season.
CORPORATE AND OTHER
Decreased depreciation and amortization expense for the three and twelve months
ended December 31, 2012, as compared to the three months and twelve months ended
December 31, 2011, reflect a change in the estimated useful lives of our assets.
Additionally, interest expense for the three and twelve months ended December
31, 2012 increased due to higher debt levels partially offset by higher
capitalized interest.
CAPITALIZATION
At December 31, 2012, we had $1,620 million of total debt outstanding comprised
of $1,095 million of senior notes and $525 million outstanding under our
revolver. Total unused revolver capacity was approximately $475 million. Our
leverage ratio pursuant to our credit facility for the quarter ended December
31, 2012, was approximately 4.2 times. Our effective interest rate on our
overall debt position, as of December 31, 2012, was 3.1 percent.
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 assets or liabilities and associated non-cash gains or losses.
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 months ended December 31, 2012, commodity derivative activity and
total revenues included non-cash gains of $2 million. This compares to non-cash
losses of $7 million for the three months ended December 31, 2011. The $18
million net hedge receipts for the three months ended December 31, 2012 included
payments of $1 million for the Southeast Texas Storage business and $19 million
of net hedge receipts for the balance of our commodity hedging program. The $14
million net hedge payments for the three months ended December 31, 2011 included
payments of $8 million for the Southeast Texas Storage business and $6 million
of net payments for the balance of our commodity hedging program. For the year
ended December 31, 2012, commodity derivative activity and total revenues
included non-cash gains of $21 million. This compares to non-cash gains of $42
million for the year ended December 31, 2011. The $49 million net hedge receipts
for the year ended December 31, 2012 were receipts of $28 million for commodity
derivative activities related to the Southeast Texas Storage business and
receipts of $21 million for the balance of our commodity hedging program. The
$35 million net hedge payments for the year ended December 31, 2011 were
payments of $5 million for the Southeast Texas Storage business and $30 million
of net payments primarily for the balance of our commodity hedging program.
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.
EARNINGS CALL
DCP Midstream Partners will hold a conference call to discuss fourth quarter and
year end results on Thursday, February 28, 2013 at 8:00 a.m. EST. The dial-in
number for the call is 1-888-771-4371 in the United States or 1-847-585-4405
outside the United States. A live webcast of the call can be accessed on the
Investor section of DCP Midstream Partners' website at www.dcppartners.com. The
call will be available for replay one hour after the end of the conference until
8:00 a.m. EST on March 14, 2013, by dialing 1-888-843-7419 in the United States
or 1-630-652-3042 outside the United States. The replay conference number is
34203901. A replay, transcript and presentation slides in PDF format will also
be available by accessing the Investor section of the partnership's website.
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 limited partner 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 operating revenues, net income or
loss attributable to partners, 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
interests 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. Historical distributable cash flow is calculated
excluding the impact of retrospective adjustments related to any acquisitions
presented under the pooling method. 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 or earnings 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 and
interest rates. Distributable cash flow is used as a supplemental liquidity and
performance 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.
We define adjusted EBITDA as net income or loss attributable to partners less
interest income, noncontrolling interest in depreciation and income tax expense
and non-cash commodity derivative gains, plus interest expense, income tax
expense, depreciation and amortization expense and non-cash commodity derivative
losses. The commodity derivative non-cash losses and gains result from the
marking to market of certain financial derivatives used by us 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 non-cash commodity derivative gains for
that segment, plus depreciation and amortization expense and non-cash commodity
derivative losses for that segment, adjusted for any noncontrolling interest on
depreciation and amortization expense for that segment. Our adjusted EBITDA
equals the sum of our adjusted segment EBITDAs, plus general and administrative
expense.
Adjusted EBITDA is used as a supplemental liquidity and performance measure and
adjusted segment EBITDA is used as 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:
* 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;
* viability and performance of acquisitions and capital expenditure projects
and the overall rates of return on investment opportunities;
* performance of our business excluding non-cash commodity derivative gains or
losses; and
* in the case of Adjusted EBITDA, 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.
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 limited partner 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 us 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 limited partner 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
engaged in the business of gathering, compressing, treating, processing,
transporting, storing and selling natural gas; producing, fractionating,
transporting, storing and selling NGLs and condensate; and transporting, storing
and selling propane in wholesale markets. DCP Midstream Partners, LP is managed
by its general partner, DCP Midstream GP, LP, which in turn is managed by its
general partner, DCP Midstream GP, LLC, or the General Partner, which is wholly-
owned by DCP Midstream, LLC, a joint venture between Spectra Energy and Phillips
66. For more information, visit the DCP Midstream Partners, LP website at
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 annual and quarterly reports most recently filed with the
Securities and Exchange Commission and other such matters discussed in the "Risk
Factors" section of the Partnership's 2012 Annual Report on Form 10-K which is
expected to be filed with the Securities and Exchange Commission on or around
February 27, 2013. 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 forward
looking statements contained herein speak as of the date of this announcement.
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
2012 2011 Reported 2012 2011 Reported
in 2011 in 2011
------------------------------------------------------------------
(Millions, except per unit amounts)
Sales of
natural gas,
propane, NGLs
and condensate
$ 376.5 $ 525.8 $ 370.1 $ 1,465.9 $ 2,178.5 $ 1,413.3
Transportation,
processing and
other 54.3 50.0 48.3 185.0 172.2 163.2
Gain (loss)
from commodity
derivative
activity, net 19.7 (20.5) (31.2) 69.8 7.7 (6.7)
------------------------------------------------------------------
Total
operating
revenues 450.5 555.3 387.2 1,720.7 2,358.4 1,569.8
Purchases of
natural gas,
propane and
NGLs (328.1) (468.7) (323.2) (1,301.5) (1,933.0) (1,229.8)
Operating and
maintenance
expense (31.5) (34.4) (28.1) (123.2) (125.7) (105.4)
Depreciation
and
amortization
expense (13.8) (25.7) (20.4) (63.4) (100.6) (81.0)
General and
administrative
expense (11.8) (13.1) (10.3) (45.8) (48.3) (37.3)
Other income 0.1 0.1 0.1 0.5 0.5 0.5
------------------------------------------------------------------
Total operating
costs and
expenses (385.1) (541.8) (381.9) (1,533.4) (2,207.1) (1,453.0)
------------------------------------------------------------------
Operating
income 65.4 13.5 5.3 187.3 151.3 116.8
Interest
expense (10.4) (8.9) (8.9) (42.2) (33.9) (33.9)
Earnings from
unconsolidated
affiliates 12.3 5.6 8.3 28.9 22.7 36.9
Income tax
benefit
(expense ) - 0.4 (0.2) (1.0) (0.5) (0.6)
Net income
attributable to
noncontrolling
interests (3.0) (6.0) (6.0) (5.0) (18.8) (18.8)
------------------------------------------------------------------
Net income
(loss)
attributable to
partners 64.3 4.6 (1.5) 168.0 120.8 100.4
Net income
attributable to
predecessor
operations - (6.1) - (2.6) (20.4) -
General
partner's
interest in net
income (11.8) (6.7) (6.7) (41.2) (25.2) (25.2)
------------------------------------------------------------------
Net income
(loss)
allocable to
limited
partners $ 52.5 $ (8.2) $ (8.2) $ 124.2 $ 75.2 $ 75.2
------------------------------------------------------------------
Net income
(loss) per
limited partner
unit - basic $ 0.87 $ (0.19) $ (0.19) $ 2.28 $ 1.73 $ 1.73
------------------------------------------------------------------
Net income
(loss) per
limited partner
unit - diluted $ 0.87 $ (0.18) $ (0.18) $ 2.28 $ 1.72 $ 1.72
------------------------------------------------------------------
Weighted-
average limited
partner units
outstanding -
basic 60.5 44.5 44.5 54.5 43.5 43.5
------------------------------------------------------------------
Weighted-
average limited
partner units
outstanding -
diluted 60.5 44.6 44.6 54.5 43.6 43.6
------------------------------------------------------------------
As
Reported
December December December
31, 31, 31,
2012 2011 2011
---------------------------------
(Millions)
Cash and cash equivalents $ 1.3 $ 7.6 $ 6.7
Other current assets 307.8 346.1 233.2
Property, plant and equipment, net 1,727.4 1,499.4 1,181.8
Other long-term assets 935.5 424.3 481.9
---------------------------------
Total assets $ 2,972.0 $ 2,277.4 $ 1,903.6
---------------------------------
Current liabilities $ 233.4 $ 380.5 $ 269.2
Long-term debt 1,620.3 746.8 746.8
Other long-term liabilities 35.1 51.8 46.7
Partners' equity 1,047.8 885.9 628.5
Noncontrolling interests 35.4 212.4 212.4
---------------------------------
Total liabilities and equity $ 2,972.0 $ 2,277.4 $ 1,903.6
---------------------------------
DCP MIDSTREAM PARTNERS, LP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
As As
2012 2011 Reported 2012 2011 Reported
in 2011 in 2011
---------------------------------------------------------
(Millions, except per unit amounts)
Reconciliation of
Non-GAAP Financial
Measures:
|
Net income (loss) |
attributable to |
partners $ 64.3 $ 4.6 $ (1.5)|$ 168.0 $ 120.8 $ 100.4
|
Interest expense 10.4 8.9 8.9| 42.2 33.9 33.9
|
Depreciation, |
amortization and |
income tax expense, |
net of noncontrolling |
interests 13.5 21.7 17.0| 63.0 87.3 67.8
|
Non-cash commodity |
derivative mark-to- |
market (2.0) 6.9 25.4| (21.3) (42.1) (22.7)
---------------------------+-----------------------------
Adjusted EBITDA 86.2 42.1 49.8| 251.9 199.9 179.4
|
Interest expense (10.4) (8.9) (8.9)| (42.2) (33.9) (33.9)
|
Depreciation, |
amortization and |
income tax expense, |
net of noncontrolling |
interests (13.5) (21.7) (17.0)| (63.0) (87.3) (67.8)
|
Other (0.4) 0.5 0.5| - 2.2 2.2
---------------------------+-----------------------------
Adjusted net income |
attributable to |
partners 61.9 $ 12.0 24.4| 146.7 $ 80.9 79.9
---------- | -----------
Maintenance capital |
expenditures, net of |
reimbursable projects (6.3) (2.9)| (17.5) (9.5)
|
Distributions from |
unconsolidated |
affiliates, net of |
earnings 1.1 1.6| 0.4 9.3
|
Depreciation and |
amortization, net of |
noncontrolling |
interests 13.5 17.0| 62.0 67.4
|
Proceeds from sale of |
assets, net of |
noncontrolling |
interests 0.1 1.4| 0.3 3.9
|
Impact of minimum |
volume receipt for |
throughput commitment (5.5) (4.4)| (0.2) (0.9)
|
Adjustment to remove |
impact of Southeast |
Texas pooling - -| (17.3) -
|
Other 2.8 0.3| 5.5 0.3
---------- ---------+---------- ----------
Distributable cash |
flow((1)) $ 67.6 $ 37.4|$ 179.9 $ 150.4
---------- ---------+---------- ----------
|
|
Adjusted net income |
attributable to |
partners $ 61.9 $ 12.0 $ 24.4|$ 146.7 $ 80.9 $ 79.9
|
Adjusted net loss |
(income) attributable |
to predecessor |
operations - 12.4 -| (2.6) (1.0) -
|
Adjusted general |
partner's interest in |
net income (11.8) (7.0) (7.0)| (41.1) (25.1) (25.1)
---------------------------+-----------------------------
Adjusted net income |
allocable to limited |
partners $ 50.1 $ 17.4 $ 17.4|$ 103.0 $ 54.8 $ 54.8
---------------------------+-----------------------------
|
|
Adjusted net income |
per limited partner |
unit - basic and |
diluted $ 0.83 $ 0.39 $ 0.39|$ 1.89 $ 1.26 $ 1.26
---------------------------+-----------------------------
|
|
Net cash (used in) |
provided by operating |
activities $ (33.9) $ 79.8 $ 55.2|$ 124.9 $ 260.8 $ 204.1
|
Interest expense 10.4 8.9 8.9| 42.2 33.9 33.9
|
Distributions from |
unconsolidated |
affiliates, net of |
earnings (1.1) 0.1 (1.6)| (0.4) (2.6) (9.3)
|
Net changes in |
operating assets and |
liabilities 117.4 (42.6) (27.6)| 114.7 (13.8) 10.0
|
Net income or loss |
attributable to |
noncontrolling |
interests, net of |
depreciation and |
income tax (3.3) (9.6) (9.6)| (6.4) (32.6) (32.6)
|
Non-cash commodity |
derivative mark-to- |
market (2.0) 6.9 25.4| (21.3) (42.1) (22.7)
|
Other, net (1.3) (1.4) (0.9)| (1.8) (3.7) (4.0)
---------------------------+-----------------------------
Adjusted EBITDA 86.2 $ 42.1 49.8| 251.9 $ 199.9 179.4
---------- | -----------
Interest expense, net |
of derivative mark- |
to-market and other (10.4) (8.9)| (42.2) (33.9)
|
Maintenance capital |
expenditures, net of |
reimbursable projects (6.3) (2.9)| (17.5) (9.5)
|
Distributions from |
unconsolidated |
affiliates, net of |
earnings 1.1 1.6| 0.4 9.3
|
Proceeds from sale of |
assets, net of |
noncontrolling |
interest 0.1 1.4| 0.3 3.9
|
Adjustment to remove |
impact of Southeast |
Texas pooling - -| (17.3) -
|
Other (3.1) (3.6)| 4.3 1.2
---------- ---------+---------- ----------
Distributable cash |
flow((1)) $ 67.6 $ 37.4|$ 179.9 $ 150.4
---------- ---------+---------- ----------
(1) Distributable cash flow has not been calculated under the pooling method.
DCP MIDSTREAM PARTNERS, LP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
SEGMENT FINANCIAL RESULTS AND OPERATING DATA
(Unaudited)
Three Months Year
Ended Ended
December 31, December 31,
As Reported in As Reported in
2012 2011 2012 2011
----------------------------------------------------
(Millions, except as indicated)
Reconciliation of Non-GAAP
Financial Measures:
Distributable cash flow $ 67.6 $ 37.4 $ 179.9 $ 150.4
Distributions declared $ 54.1 $ 36.7 $ 198.7 $ 139.0
----------------------------------------------------
Distribution coverage
ratio - declared 1.25x 1.02x 0.91x 1.08x
----------------------------------------------------
Distributable cash flow $ 67.6 $ 37.4 $ 179.9 $ 150.4
Distributions paid $ 52.6 $ 34.9 $ 181.3 $ 132.3
----------------------------------------------------
Distribution coverage
ratio - paid 1.29x 1.07x 0.99x 1.14x
----------------------------------------------------
Three Months Ended Year Ended
December 31, December 31,
As As
2012 2011 Reported 2012 2011 Reported
in 2011 in 2011
---------------------------------------------------------
(Millions, except per unit amounts)
Natural Gas Services
Segment:
Financial results:
Segment net income
(loss) attributable
to partners $ 53.9 $ 6.2 $ (2.1) $ 179.5 142.0 110.7
Non-cash commodity
derivative mark-to-
market (14.4) 7.9 26.4 (19.8) (41.8) (22.4)
Depreciation and
amortization expense 11.7 22.8 17.5 54.7 89.5 69.9
Noncontrolling
interests on
depreciation and
income tax (0.3) (3.6) (3.6) (1.4) (13.8) (13.8)
---------------------------------------------------------
Adjusted segment
EBITDA $ 50.9 $ 33.3 $ 38.2 $ 213.0 $ 175.9 $ 144.4
---------------------------------------------------------
Operating and
financial data:
Natural gas
throughput (MMcf/d) 1,725 1,372 1,176 1,667 1,415 1,209
NGL gross production
(Bbls/d) 74,253 50,223 38,599 65,610 53,064 39,426
Operating and
maintenance expense $ 24.6 $ 25.7 $ 19.4 $ 92.4 $ 94.7 $ 74.4
NGL Logistics
Segment:
Financial results:
Segment net income
attributable to
partners $ 18.8 7.8 7.8 $ 53.0 28.4 28.4
Depreciation and
amortization expense 1.6 2.1 2.1 6.2 8.2 8.2
---------------------------------------------------------
Adjusted segment
EBITDA $ 20.4 $ 9.9 $ 9.9 $ 59.2 $ 36.6 $ 36.6
---------------------------------------------------------
Operating and
financial data:
NGL pipelines
throughput (Bbls/d) 81,120 76,814 76,814 78,508 62,555 62,555
Operating and
maintenance expense $ 3.3 $ 4.6 $ 4.6 $ 16.1 $ 15.9 $ 15.9
Wholesale Propane
Logistics Segment:
Financial results:
Segment net income
attributable to
partners $ 13.7 $ 12.2 $ 12.2 $ 24.5 $ 33.1 $ 33.1
Non-cash commodity
derivative mark-to-
market 12.4 (1.0) (1.0) (1.5) (0.3) (0.3)
Depreciation and
amortization expense 0.6 0.8 0.8 2.5 2.9 2.9
---------------------------------------------------------
Adjusted segment
EBITDA $ 26.7 $ 12.0 $ 12.0 $ 25.5 $ 35.7 $ 35.7
---------------------------------------------------------
Operating and
financial data:
Propane sales volume
(Bbls/d) 21,297 27,141 27,141 19,111 24,743 24,743
Operating and
maintenance expense $ 3.6 $ 4.1 $ 4.1 $ 14.7 $ 15.1 $ 15.1
DCP MIDSTREAM PARTNERS, LP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
Year Ended
December
Q112 Q212 Q312 Q412 31,
2012
-------------------------------------------------
(Millions, except as indicated)
Net income attributable to
partners $ 23.3 $ 79.1 $ 1.3 $ 64.3 $ 168.0
Maintenance capital
expenditures, net of
reimbursable projects (3.3) (4.3) (3.6) (6.3) (17.5)
Depreciation and amortization
expense, net of
noncontrolling interests 24.8 9.1 14.6 13.5 62.0
Non-cash commodity derivative
mark-to-market 22.6 (64.8) 22.9 (2.0) (21.3)
Distributions from
unconsolidated affiliates,
net of earnings (0.1) 0.8 (1.4) 1.1 0.4
Proceeds from sale of assets,
net of noncontrolling
interests - 0.1 0.1 0.1 0.3
Impact of minimum volume
receipt for throughput
commitment 1.6 1.9 1.8 (5.5) (0.2)
Non-cash interest rate
derivative mark-to-market 1.2 (0.4) (0.4) (0.4) -
Adjustment to remove impact
of Southeast Texas pooling (17.3) - - - (17.3)
Other 2.2 0.4 0.1 2.8 5.5
-------------------------------------------------
Distributable cash flow $ 55.0 $ 21.9 $ 35.4 $ 67.6 $ 179.9
-------------------------------------------------
Distributions declared $ 42.6 $ 49.4 $ 52.6 $ 54.1 $ 198.7
-------------------------------------------------
Distribution coverage ratio -
declared 1.29x 0.44x 0.67x 1.25x 0.91x
Distributable cash flow $ 55.0 $ 21.9 $ 35.4 $ 67.6 $ 179.9
-------------------------------------------------
Distributions paid $ 36.7 $ 42.6 $ 49.4 $ 52.6 $ 181.3
-------------------------------------------------
Distribution coverage ratio -
paid 1.50x 0.51x 0.72x 1.29x 0.99x
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: DCP Midstream Partners LP via Thomson Reuters ONE
[HUG#1681375]
