DELAWARE
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001-35262
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16-1731691
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(State or other jurisdiction of
incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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Exhibit
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Number
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Description
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Regency Energy Partners LP Press Release dated August 7, 2013 announcing the results of its operations for the second quarter ended June 30, 2013.
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REGENCY ENERGY PARTNERS LP
By: Regency GP LP, its general partner
By: Regency GP LLC, its general partner
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By:
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/s/ Thomas E. Long
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Thomas E. Long
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Executive Vice President and Chief Financial Officer
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EBITDA;
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adjusted EBITDA;
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distributable cash flow;
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segment margin;
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total segment margin;
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adjusted segment margin; and
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adjusted total segment margin.
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non-cash loss (gain) from commodity and embedded derivatives;
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unit-based compensation expenses;
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loss (gain) on asset sales, net;
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loss on debt refinancing;
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other non-cash (income) expense, net;
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net income attributable to the Edwards Lime Joint Venture (“ELG”);
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partnership’s interest in ELG adjusted EBITDA; and
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our interest in adjusted EBITDA from unconsolidated affiliates less income from unconsolidated affiliates.
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financial performance of our assets without regard to financing methods, capital structure or historical cost basis;
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the ability of our assets to generate cash sufficient to pay interest costs, support our indebtedness and make cash distributions to our unitholders and General Partner;
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our operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing or capital structure; and
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the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
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minus interest expense, excluding capitalized interest;
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minus maintenance capital expenditures;
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minus distributions to Series A Preferred Units;
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plus cash proceeds from asset sales, if any; and
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other adjustments.
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Regency Energy Partners LP
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Condensed Consolidated Balance Sheets
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($ in millions)
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June 30, 2013
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December 31, 2012
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Assets
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Current assets
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$ | 345 | $ | 340 | ||
Property, plant and equipment, net
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4,073 | 3,686 | ||||
Investment in unconsolidated affiliates
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2,224 | 2,214 | ||||
Other assets, net
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55 | 43 | ||||
Intangible assets, net
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696 | 712 | ||||
Goodwill
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1,128 | 1,128 | ||||
Total Assets
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$ | 8,521 | $ | 8,123 | ||
Liabilities and Partners' Capital and Noncontrolling Interest
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Current liabilities
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$ | 409 | $ | 489 | ||
Other long-term liabilities
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85 | 64 | ||||
Long-term debt
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2,935 | 2,157 | ||||
Series A Preferred Units
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73 | 73 | ||||
Partners' capital
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4,929 | 3,530 | ||||
Member's equity
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- | 1,733 | ||||
Noncontrolling interest
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90 | 77 | ||||
Total Partners' Capital and Noncontrolling Interest
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5,019 | 5,340 | ||||
Total Liabilities and Partners' Capital and Noncontrolling Interest
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$ | 8,521 | $ | 8,123 | ||
Regency Energy Partners LP
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Condensed Consolidated Statements of Operations
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($ in millions)
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Three Months Ended June 30,
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2013
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2012
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REVENUES
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$ | 639 | $ | 511 | ||
OPERATING COSTS AND EXPENSES
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Cost of sales
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445 | 336 | ||||
Operation and maintenance
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73 | 57 | ||||
General and administrative
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18 | 25 | ||||
Loss on asset sales, net
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1 | 2 | ||||
Depreciation and amortization
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68 | 69 | ||||
Total operating costs and expenses
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605 | 489 | ||||
OPERATING INCOME
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34 | 22 | ||||
Income from unconsolidated affiliates
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31 | 34 | ||||
Interest expense, net
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(41 | ) | (28 | ) | ||
Loss on debt refinancing, net
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(7 | ) | (8 | ) | ||
Other income and deductions, net
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(7 | ) | 8 | |||
INCOME BEFORE INCOME TAXES
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10 | 28 | ||||
Income tax expense (benefit)
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(1 | ) | - | |||
NET INCOME
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$ | 11 | $ | 28 | ||
Net income attributable to noncontrolling interest
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(1 | ) | (1 | ) | ||
NET INCOME ATTRIBUTABLE TO REGENCY ENERGY PARTNERS LP
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$ | 10 | $ | 27 | ||
Amount allocated to common units
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$ | 13 | $ | 23 | ||
Weighted average number of common units outstanding
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193,065,183 | 170,107,060 | ||||
Basic income per common unit
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$ | 0.07 | $ | 0.14 | ||
Diluted income per common unit
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$ | 0.07 | $ | 0.10 |
Three Months Ended June 30,
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2013
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2012
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($ in millions)
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Gathering and Processing Segment
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Financial data:
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Segment margin
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$ | 145 | $ | 130 | ||
Adjusted segment margin
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132 | 115 | ||||
Operating data:
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Throughput (MMbtu/d)
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2,178,000 | 1,839,000 | ||||
NGL gross production (Bbls/d)
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89,100 | 77,800 |
Three Months Ended June 30,
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2013
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2012
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($ in millions)
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Contract Services
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Financial data:
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Segment margin
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$ | 49 | $ | 45 | ||
Operating data:
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Revenue generating horsepower, including intercompany revenue generating horsepower
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938,000 | 825,000 | ||||
Three Months Ended June 30,
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2013
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2012
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($ in millions)
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Corporate Segment
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Financial data:
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Segment margin
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$ | 4 | $ | 5 | ||
Three Months Ended June 30,
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2013
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2012
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($ in millions)
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Haynesville Joint Venture
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Financial data:
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Adjusted EBITDA
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$ | 27 | $ | 36 | ||
Operating data:
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Throughput (MMbtu/d)
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657,950 | 903,344 | ||||
Three Months Ended June 30,
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2013
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2012
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($ in millions)
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MEP Joint Venture
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Financial data:
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Adjusted EBITDA
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$ | 51 | $ | 51 | ||
Operating data:
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Throughput (MMbtu/d)
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1,263,734 | 1,418,206 | ||||
Three Months Ended June 30,
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2013
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2012
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($ in millions)
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Lone Star Joint Venture
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Financial data:
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Adjusted EBITDA
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$ | 65 | $ | 53 | ||
Operating data:
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NGL Transportation - Throughput (Bbls/d) (1)
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162,552 | 133,429 | ||||
Refinery - Throughput (Bbls/d)
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14,748 | 20,575 | ||||
Fractionation - Throughput (Bbls/d) (2)
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86,947 | - | ||||
(1) Includes Gateway Pipeline throughput which was placed in service in December 2012
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(2) Fractionator began operations in December 2012
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Three Months Ended June 30,
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2013
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2012
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($ in millions)
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Ranch Joint Venture
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Financial data:
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Adjusted EBITDA
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$ | 2 | $ | - | ||
Operating data:
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Throughput (MMbtu/d)
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68,522 | 4,744 | * | |||
*Ranch Joint Venture's Refrigeration Processing Plant started operating in June 2012.
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Three Months Ended June 30,
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2013
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2012
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($ in millions)
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Net income
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$ | 11 | $ | 28 | ||
Add (deduct):
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Interest expense, net
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41 | 28 | ||||
Depreciation and amortization
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68 | 69 | ||||
EBITDA (1)
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$ | 120 | $ | 125 | ||
Add (deduct):
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Partnership's interest in unconsolidated affiliates' adjusted EBITDA (2)(3)(4)(5)
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60 | 60 | ||||
Income from unconsolidated affiliates
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(31 | ) | (34 | ) | ||
Non-cash gain from commodity and embedded derivatives
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(4 | ) | (22 | ) | ||
Other income, net
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10 | 9 | ||||
Adjusted EBITDA
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$ | 155 | $ | 138 | ||
(1) Earnings before interest, taxes, depreciation and amortization.
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(2) 100% of Haynesville Joint Venture's Adjusted EBITDA is calculated as follows:
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Net income
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$ | 18 | $ | 26 | ||
Add (deduct):
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Depreciation and amortization
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9 | 9 | ||||
Interest expense, net
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- | 1 | ||||
Adjusted EBITDA
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$ | 27 | $ | 36 | ||
Average ownership interest
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49.99 | % | 49.99 | % | ||
Partnership's interest in Adjusted EBITDA
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$ | 13 | $ | 18 | ||
(3) 100% of MEP Joint Venture's Adjusted EBITDA is calculated as follows:
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Net income
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$ | 21 | $ | 21 | ||
Add (deduct):
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Depreciation and amortization
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17 | 17 | ||||
Interest expense, net
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13 | 13 | ||||
Adjusted EBITDA
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$ | 51 | $ | 51 | ||
Average ownership interest
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50.00 | % | 50.00 | % | ||
Partnership's interest in Adjusted EBITDA
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$ | 26 | $ | 26 | ||
(4) 100% of Lone Star Joint Venture's Adjusted EBITDA is calculated as follows:
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Net income
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$ | 44 | $ | 41 | ||
Add (deduct):
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Depreciation and amortization
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20 | 13 | ||||
Other expenses, net
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1 | (1 | ) | |||
Adjusted EBITDA
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$ | 65 | $ | 53 | ||
Average ownership interest
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30.00 | % | 30.00 | % | ||
Partnership's interest in Adjusted EBITDA
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$ | 20 | $ | 16 | ||
(5) 100% of Ranch Joint Venture's Adjusted EBITDA is calculated as follows:
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Net income (loss)
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$ | 1 | $ | - | ||
Add (deduct):
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Depreciation and amortization
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1 | - | ||||
Adjusted EBITDA
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$ | 2 | $ | - | ||
Average ownership interest
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33.33 | % | 33.33 | % | ||
Partnership's interest in Adjusted EBITDA
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$ | 1 | $ | - |
Three Months Ended June 30,
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2013
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2012
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($ in millions)
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Net income
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$ | 11 | $ | 28 | ||
Add (Deduct):
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Operation and maintenance
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73 | 57 | ||||
General and administrative
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18 | 25 | ||||
Loss on asset sales, net
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1 | 2 | ||||
Depreciation and amortization
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68 | 69 | ||||
Income from unconsolidated affiliates
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(31 | ) | (34 | ) | ||
Interest expense, net
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41 | 28 | ||||
Loss on debt refinancing, net
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7 | 8 | ||||
Other income and deductions, net
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7 | (8 | ) | |||
Income tax benefit
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(1 | ) | - | |||
Total Segment Margin
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194 | 175 | ||||
Non-cash gain from commodity derivatives
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(12 | ) | (14 | ) | ||
Segment margin related to the noncontrolling interest
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(2 | ) | (1 | ) | ||
Segment margin related to ownership percentage in Ranch JV
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1 | - | ||||
Adjusted Total Segment Margin
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$ | 181 | $ | 160 | ||
Gathering & Processing Segment Margin
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$ | 145 | $ | 130 | ||
Non-cash gain from commodity derivatives
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(12 | ) | (14 | ) | ||
Segment margin related to the noncontrolling interest
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(2 | ) | (1 | ) | ||
Segment margin related to ownership percentage in Ranch JV
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1 | - | ||||
Adjusted Gathering and Processing Segment Margin
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132 | 115 | ||||
Natural Gas Transportation Segment Margin
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- | - | ||||
Contract Services Segment Margin
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49 | 45 | ||||
Corporate Segment Margin
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4 | 5 | ||||
Inter-segment Elimination
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(4 | ) | (5 | ) | ||
Adjusted Total Segment Margin
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$ | 181 | $ | 160 |
Three Months Ended June 30,
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2013
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2012
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($ in millions)
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Net cash flows provided by operating activities
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$ | 112 | $ | 53 | ||
Add (deduct):
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Depreciation and amortization, including debt issuance cost, bond premium and excess fair value of unconsolidated affiliates amortization
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(68 | ) | (70 | ) | ||
Income from unconsolidated affiliates
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31 | 34 | ||||
Derivative valuation change
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1 | 15 | ||||
Loss on asset sales, net
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(1 | ) | (2 | ) | ||
Unit-based compensation expenses
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(1 | ) | (1 | ) | ||
Cash flow changes in current assets and liabilities:
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Trade accounts receivables, accrued revenues, and related party receivables
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27 | (25 | ) | |||
Other current assets and other current liabilities
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137 | 8 | ||||
Trade accounts payable, accrued cost of gas and liquids, related party payables and deferred revenues
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(57 | ) | 37 | |||
Distributions of earnings received from unconsolidated affiliates
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(35 | ) | (34 | ) | ||
Other assets and liabilities
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(135 | ) | 13 | |||
Net (Loss) Income
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$ | 11 | $ | 28 | ||
Add:
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Interest expense, net
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41 | 28 | ||||
Depreciation and amortization
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68 | 69 | ||||
EBITDA
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$ | 120 | $ | 125 | ||
Add (deduct):
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Partnership's interest in unconsolidated affiliates' adjusted EBITDA
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60 | 60 | ||||
Income from unconsolidated affiliates
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(31 | ) | (34 | ) | ||
Non-cash loss (gain) from commodity and embedded derivatives
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(4 | ) | (22 | ) | ||
Other income, net
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10 | 9 | ||||
Adjusted EBITDA
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$ | 155 | $ | 138 | ||
Add (deduct):
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Interest expense, excluding capitalized interest
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(46 | ) | (41 | ) | ||
Maintenance capital expenditures
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(13 | ) | (7 | ) | ||
SUGS Contribution Agreement adjustment *
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9 | (23 | ) | |||
Proceeds from asset sales
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5 | 7 | ||||
Other adjustments
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(9 | ) | (2 | ) | ||
Distributable cash flow
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$ | 101 | $ | 72 | ||
* Includes an adjustment to DCF related to the historical SUGS operations for the time period prior to the Partnership's acquisition.
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Six Months Ended June 30,
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2013
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2012
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($ in millions)
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Net cash flows provided by operating activities
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$ | 195 | $ | 102 | ||
Add (deduct):
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Depreciation and amortization, including debt issuance cost, bond premium and excess fair value of unconsolidated affiliates amortization
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(137 | ) | (125 | ) | ||
Income from unconsolidated affiliates
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66 | 66 | ||||
Derivative valuation change
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(17 | ) | 18 | |||
Loss on asset sales, net
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(2 | ) | (2 | ) | ||
Unit-based compensation expenses
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(3 | ) | (2 | ) | ||
Cash flow changes in current assets and liabilities:
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Trade accounts receivables, accrued revenues, and related party receivables
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41 | (29 | ) | |||
Other current assets and other current liabilities
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51 | (3 | ) | |||
Trade accounts payable, accrued cost of gas and liquids, related party payables and deferred revenues
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(10 | ) | 69 | |||
Distributions of earnings received from unconsolidated affiliates
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(71 | ) | (63 | ) | ||
Other assets and liabilities
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(131 | ) | 12 | |||
Net (Loss) Income
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$ | (18 | ) | $ | 43 | |
Add:
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Interest expense, net
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78 | 57 | ||||
Depreciation and amortization
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133 | 122 | ||||
Income tax expense (benefit)
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(3 | ) | - | |||
EBITDA
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$ | 190 | $ | 222 | ||
Add (deduct):
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Non-cash loss (gain) from commodity and embedded derivatives
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14 | (24 | ) | |||
Unit-based compensation expenses
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3 | 1 | ||||
Loss on asset sales, net
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2 | 2 | ||||
Loss on debt extinguishment
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7 | 8 | ||||
Income from unconsolidated affiliates
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(66 | ) | (66 | ) | ||
Partnership's interest in unconsolidated affiliates' adjusted EBITDA
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123 | 116 | ||||
Other income, net
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1 | (2 | ) | |||
Adjusted EBITDA
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$ | 274 | $ | 257 | ||
Add (deduct):
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Interest expense, excluding capitalized interest
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(81 | ) | (76 | ) | ||
Maintenance capital expenditures
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(20 | ) | (14 | ) | ||
SUGS Contribution Agreement adjustment *
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16 | (8 | ) | |||
Proceeds from asset sales
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16 | 20 | ||||
Other adjustments
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(4 | ) | (6 | ) | ||
Distributable cash flow
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$ | 201 | $ | 173 | ||
* Includes an adjustment to DCF related to the historical SUGS operations for the time period prior to the Partnership's acquisition.
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