Delaware | 001-35262 | 16-1731691 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
2001 Bryan, Suite 3700 Dallas, Texas 75201 | ||
(Address of principal executive offices) (Zip Code) | ||
Registrant’s telephone number, including area code (214) 750-1771 |
Exhibit Number | Description | |
23.1 | Consent of Grant Thornton LLP | |
23.2 | Consent of KPMG LLP | |
23.3 | Consent of PricewaterhouseCoopers LLP | |
99.1 | Revised Regency Energy Partners LP financial statements as of December 31, 2012 and 2011, and for each of the three years in the period ended December 31, 2012, selected financial data as of and for each of the five years in the period ended December 31, 2012, Management's Discussion and Analysis of Financial Condition and Results of Operations, and Quantitative and Qualitative Disclosures about Market Risk. | |
99.2 | Report of Independent Registered Public Accounting Firm | |
99.3 | Report of Independent Registered Public Accounting Firm |
REGENCY ENERGY PARTNERS LP By: Regency GP LP, its general partner By: Regency GP LLC, its general partner | ||
Date: | August 9, 2013 | /S/ A. TROY STURROCK |
A. Troy Sturrock Vice President, Controller and Principal Accounting Officer (Duly authorized officer) |
Name | Definition or Description |
/d | Per day |
AOCI | Accumulated Other Comprehensive Income (Loss) |
APM | Anadarko Pecos Midstream LLC |
Bbls | Barrels |
Bcf | One billion cubic feet |
BTU | A unit of energy needed to raise the temperature of one pound of water by one degree Fahrenheit |
Citi | Citigroup Global Markets Inc. |
CERCLA | Comprehensive Environmental Response, Compensation and Liability Act |
CFTC | Commodity Futures Trading Commission |
CM | Chesapeake West Texas Processing, L.L.C. |
DHS | U.S. Department of Homeland Security |
DOT | U.S. Department of Transportation |
EFS Haynesville | EFS Haynesville, LLC, a wholly-owned subsidiary of GECC |
EIA | Energy Information Administration |
ELG | Edwards Lime Gathering LLC and its wholly-owned subsidiaries, ELG Oil LLC and ELG Utility LLC |
EPA | Environmental Protection Agency |
EPD | Enterprise Products Partners L.P. |
ERISA | Employee Retirement Income Security Act of 1974 |
ETC | Energy Transfer Company, the name assumed by La Grange Acquisition, L.P. for conducting business and shared services, a wholly-owned subsidiary of ETP |
ETE | Energy Transfer Equity, L.P. |
ETE GP | ETE GP Acquirer LLC |
ETP | Energy Transfer Partners, L.P. |
FASB | Financial Accounting Standards Board |
FASB ASC | FASB Accounting Standards Codification |
FERC | Federal Energy Regulatory Commission |
Finance Corp. | Regency Energy Finance Corp., a wholly-owned subsidiary of the Partnership |
GAAP | Accounting principles generally accepted in the United States of America |
GE | General Electric Company |
GE EFS | General Electric Energy Financial Services, a unit of GECC, combined with Regency GP Acquirer, L.P. and Regency LP Acquirer, L.P. |
GECC | General Electric Capital Corporation, an indirect wholly-owned subsidiary of GE |
General Partner | Regency GP LP, the general partner of the Partnership, or Regency GP LLC, the general partner of Regency GP LP, which effectively manages the business and affairs of the Partnership through Regency Employees Management LLC |
GPM | Gallons per minute |
GP Seller | Regency GP Acquirer, L.P. |
Gulf States | Gulf States Transmission LLC, a wholly-owned subsidiary of the Partnership |
HLPSA | Hazardous Liquid Pipeline Safety Act |
Holdco | ETP Holdco Corporation |
HPC | RIGS Haynesville Partnership Co., a general partnership, and its wholly-owned subsidiary, Regency Intrastate Gas LP |
ICA | Interstate Commerce Act |
Name | Definition or Description |
IDRs | Incentive Distribution Rights |
IPO | Initial Public Offering of Securities |
IRC | Internal Revenue Code |
IRS | Internal Revenue Service |
KMP | Kinder Morgan Energy Partners, L.P. |
LDH | LDH Energy Asset Holdings LLC |
LIBOR | London Interbank Offered Rate |
Lone Star | Lone Star NGL LLC |
LTIP | Long-Term Incentive Plan |
MBbls | One thousand barrels |
MEP | Midcontinent Express Pipeline LLC |
MLP | Master Limited Partnership |
MMBtu | One million BTUs |
MMcf | One million cubic feet |
MQD | Minimum Quarterly Distribution ($0.35 per common unit) |
NGA | Natural Gas Act of 1938 |
NGLs | Natural gas liquids, including ethane, propane, normal butane, iso butane and natural gasoline |
NGPA | Natural Gas Policy Act of 1978 |
NGPSA | Natural Gas Pipeline Safety Act of 1968, as amended |
NMED | New Mexico Environmental Development |
NPDES | National Pollutant Discharge Elimination System |
NYMEX | New York Mercantile Exchange |
NASDAQ | NASDAQ Global Select Market |
NYSE | New York Stock Exchange |
OSHA | Occupational Safety and Health Act |
Partnership | Regency Energy Partners LP |
Ranch JV | Ranch Westex JV LLC |
Regency Western | Regency Western G&P LLC, an indirectly wholly owned subsidiary of the Partnership |
RCRA | Resource Conservation and Recovery Act |
RGS | Regency Gas Services LP, a wholly-owned subsidiary of the Partnership |
RIGS | Regency Intrastate Gas System |
SEC | Securities and Exchange Commission |
Series A Preferred Units | Series A convertible redeemable preferred units |
Services Co. | ETE Services Company, LLC |
Southern Union | Southern Union Company |
SUGS | Southern Union Gas Services |
SXL | Sunoco Logistics Partners L.P. |
TCEQ | Texas Commission on Environmental Quality |
TRRC | Texas Railroad Commission |
WTI | West Texas Intermediate Crude |
Zephyr | Zephyr Gas Services LLC, a wholly-owned subsidiary of the Partnership |
Successor | Predecessor | |||||||||||||||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | Year Ended December 31, 2009 | Year Ended December 31, 2008 | |||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||||||
Total revenues | $ | 2,000 | $ | 1,434 | $ | 716 | $ | 505 | $ | 1,043 | $ | 1,785 | ||||||||||||
Total operating costs and expenses | 1,970 | 1,394 | 702 | 485 | 816 | 1,635 | ||||||||||||||||||
Operating income | 30 | 40 | 14 | 20 | 227 | 150 | ||||||||||||||||||
Other income and deductions: | ||||||||||||||||||||||||
Income from unconsolidated affiliates | 105 | 120 | 54 | 16 | 8 | — | ||||||||||||||||||
Interest expense, net | (122 | ) | (103 | ) | (48 | ) | (35 | ) | (78 | ) | (63 | ) | ||||||||||||
Loss on debt refinancing, net | (8 | ) | — | (16 | ) | (2 | ) | — | — | |||||||||||||||
Other income and deductions, net | 29 | 17 | (8 | ) | (4 | ) | (15 | ) | — | |||||||||||||||
Income (loss) from continuing operations before income taxes | 34 | 74 | (4 | ) | (5 | ) | 142 | 87 | ||||||||||||||||
Income tax expense (benefit) | — | — | 1 | — | (1 | ) | — | |||||||||||||||||
Income (loss) from continuing operations | $ | 34 | $ | 74 | $ | (5 | ) | $ | (5 | ) | $ | 143 | $ | 87 | ||||||||||
Discontinued operations: | ||||||||||||||||||||||||
Net (loss) income from operations of east Texas assets | — | — | (1 | ) | — | (3 | ) | 14 | ||||||||||||||||
Net income (loss) | 34 | 74 | (6 | ) | (5 | ) | 140 | 101 | ||||||||||||||||
Net income attributable to noncontrolling interest | (2 | ) | (2 | ) | — | — | — | — | ||||||||||||||||
Net income (loss) attributable to Regency Energy Partners LP | $ | 32 | $ | 72 | $ | (6 | ) | $ | (5 | ) | $ | 140 | $ | 101 | ||||||||||
Amounts attributable to Series A Preferred Units | 10 | 8 | 5 | 3 | 4 | — | ||||||||||||||||||
General partner’s interest, including IDRs | 9 | 7 | 3 | 1 | 5 | 4 | ||||||||||||||||||
Amount allocated to non-vested common units | — | — | — | — | 1 | 1 | ||||||||||||||||||
Beneficial conversion feature for Class D common units | — | — | — | — | 1 | 7 | ||||||||||||||||||
Pre-acquisition income from SUGS allocated to predecessor equity | (14 | ) | — | — | — | — | — | |||||||||||||||||
Limited partners’ interest in net income (loss) | $ | 27 | $ | 57 | $ | (14 | ) | $ | (9 | ) | $ | 129 | $ | 89 | ||||||||||
Basic and diluted income (loss) from continuing operations per unit: | ||||||||||||||||||||||||
Basic income (loss) from continuing operations per common and subordinated unit | $ | 0.16 | $ | 0.39 | $ | (0.09 | ) | $ | (0.10 | ) | $ | 1.63 | $ | 1.14 | ||||||||||
Diluted income (loss) from continuing operations per common and subordinated units | 0.13 | 0.32 | (0.09 | ) | (0.10 | ) | 1.63 | 1.10 | ||||||||||||||||
Distributions per common and subordinated unit | 1.84 | 1.81 | 0.89 | 0.89 | 1.78 | 1.71 |
Basic and diluted income (loss) on discontinued operations per unit | $ | — | $ | — | $ | (0.01 | ) | $ | — | $ | (0.03 | ) | $ | 0.21 | ||||||||||
Basic and diluted net income (loss) per unit: | ||||||||||||||||||||||||
Basic net income (loss) per common and subordinated unit | $ | 0.16 | $ | 0.39 | $ | (0.10 | ) | $ | (0.10 | ) | $ | 1.61 | $ | 1.34 | ||||||||||
Diluted net income (loss) per common and subordinated unit | 0.13 | 0.32 | (0.10 | ) | (0.10 | ) | 1.60 | 1.28 | ||||||||||||||||
Income per Class D common unit due to beneficial conversion feature | $ | — | $ | — | $ | — | $ | — | $ | 0.11 | $ | 0.99 |
Successor | Predecessor | |||||||||||||||||||
December 31, 2012 | December 31, 2011 | December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||||||||
Balance Sheet Data (at period end): | ||||||||||||||||||||
Property, plant and equipment, net | $ | 3,686 | $ | 1,886 | $ | 1,660 | $ | 1,456 | $ | 1,704 | ||||||||||
Total assets | 8,123 | 5,568 | 4,770 | 2,533 | 2,459 | |||||||||||||||
Long-term debt (long-term portion only) | 2,157 | 1,687 | 1,141 | 1,014 | 1,126 | |||||||||||||||
Series A Preferred Units | 73 | 71 | 71 | 52 | — | |||||||||||||||
Partners’ capital | 5,340 | 3,531 | 3,294 | 1,243 | 1,099 |
Successor | Predecessor | |||||||||||||||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | Year Ended December 31, 2009 | Year Ended December 31, 2008 | |||||||||||||||||||
Cash Flow Data: | ||||||||||||||||||||||||
Net cash flows provided by (used in): | ||||||||||||||||||||||||
Operating activities | $ | 324 | $ | 254 | $ | 80 | $ | 89 | $ | 144 | $ | 181 | ||||||||||||
Investing activities | (807 | ) | (955 | ) | (297 | ) | (148 | ) | (156 | ) | (949 | ) | ||||||||||||
Financing activities | 535 | 693 | 203 | 72 | 21 | 735 | ||||||||||||||||||
Other Financial Data: | ||||||||||||||||||||||||
Adjusted total segment margin(1) | $ | 608 | $ | 421 | $ | 235 | $ | 154 | $ | 361 | $ | 402 | ||||||||||||
Adjusted EBITDA(1) | 525 | 422 | 218 | 108 | 211 | 259 | ||||||||||||||||||
Maintenance capital expenditures | 58 | 22 | 7 | 8 | 20 | 18 |
(1) | See “—Non-GAAP Financial Measures” for a reconciliation to its most directly comparable GAAP measure. |
• | non-cash loss (gain) from commodity and embedded derivatives; |
• | unit-based compensation expenses; |
• | loss (gain) on asset sales, net; |
• | loss on debt refinancing; |
• | other non-cash (income) expense, net; |
• | net income attributable to noncontrolling interest; and |
• | our interest in adjusted EBITDA from unconsolidated affiliates less income from unconsolidated affiliates. |
• | financial performance of our assets without regard to financing methods, capital structure or historical cost basis; |
• | 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; |
• | 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 |
• | the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities. |
Successor | Predecessor | |||||||||||||||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | Year Ended December 31, 2009 | Year Ended December 31, 2008 | |||||||||||||||||||
Reconciliation of “Adjusted EBITDA” to net cash flows provided by operating activities and to net income (loss) | ||||||||||||||||||||||||
Net cash flows provided by operating activities | $ | 324 | $ | 254 | $ | 80 | $ | 89 | $ | 144 | $ | 181 | ||||||||||||
Add (deduct): | ||||||||||||||||||||||||
Depreciation and amortization, including debt issuance cost write-off and amortization and bond premium write-off and amortization | (259 | ) | (175 | ) | (78 | ) | (51 | ) | (116 | ) | (105 | ) | ||||||||||||
Income from unconsolidated affiliates | 105 | 120 | 54 | 16 | 8 | — | ||||||||||||||||||
Derivative valuation change | 12 | 21 | (33 | ) | (12 | ) | (5 | ) | 15 | |||||||||||||||
(Loss) gain on assets sales, net | (3 | ) | 2 | — | — | 133 | (1 | ) | ||||||||||||||||
Unit-based compensation expenses | (5 | ) | (3 | ) | (2 | ) | (12 | ) | (6 | ) | (4 | ) | ||||||||||||
Gain on insurance settlements | — | — | — | — | — | 3 | ||||||||||||||||||
Trade accounts receivable, accrued revenues and related party receivables | — | 8 | — | 11 | (11 | ) | (19 | ) | ||||||||||||||||
Other current assets and other current liabilities | (10 | ) | (11 | ) | 13 | (25 | ) | (4 | ) | (6 | ) | |||||||||||||
Trade accounts payable, accrued cost of gas and liquids, related party payables, and deferred revenues | (18 | ) | (23 | ) | 15 | (9 | ) | 4 | 41 | |||||||||||||||
Distributions of earnings received from unconsolidated affiliates | (121 | ) | (119 | ) | (57 | ) | (12 | ) | (8 | ) | — | |||||||||||||
Cash flow changes in other assets and liabilities | 9 | — | 2 | — | 1 | (4 | ) | |||||||||||||||||
Net income (loss) | 34 | 74 | (6 | ) | (5 | ) | 140 | 101 | ||||||||||||||||
Add (deduct): | ||||||||||||||||||||||||
Interest expense, net | 122 | 103 | 48 | 35 | 78 | 63 | ||||||||||||||||||
Depreciation and amortization | 252 | 169 | 77 | 46 | 110 | 103 | ||||||||||||||||||
Income tax expense (benefit) | — | — | 1 | — | (1 | ) | — | |||||||||||||||||
EBITDA | 408 | 346 | 120 | 76 | 327 | 267 | ||||||||||||||||||
Add (deduct): | ||||||||||||||||||||||||
Patnership’s interest in unconsolidated affiliates adjusted EBITDA (1) (2) (3) (4) | 227 | 213 | 102 | 21 | 11 | — | ||||||||||||||||||
Income from unconsolidated affiliates | (105 | ) | (120 | ) | (54 | ) | (16 | ) | (8 | ) | — | |||||||||||||
Non-cash (gain) loss from commodity and embedded derivatives | (19 | ) | (18 | ) | 31 | 11 | 5 | (15 | ) | |||||||||||||||
Loss (gain) on assets sales, net | 3 | (2 | ) | — | — | (133 | ) | 1 | ||||||||||||||||
Other expense, net | 11 | 3 | 19 | 16 | 9 | 6 | ||||||||||||||||||
Adjusted EBITDA | $ | 525 | $ | 422 | $ | 218 | $ | 108 | $ | 211 | $ | 259 | ||||||||||||
(1) 100% of HPC’s Adjusted EBITDA is calculated as follows: | ||||||||||||||||||||||||
Net income | $ | 70 | $ | 109 | $ | 72 | $ | 35 | $ | 20 | $ | — | ||||||||||||
Add: | ||||||||||||||||||||||||
Depreciation and amortization | 36 | 35 | 20 | 12 | 9 | — | ||||||||||||||||||
Interest expense | 2 | 1 | — | — | — | — | ||||||||||||||||||
Impairment of property, plant and equipment | 22 | — | — | — | — | — | ||||||||||||||||||
Other expense, net | 2 | — | — | — | — | — | ||||||||||||||||||
HPC’s Adjusted EBITDA | 132 | 145 | 92 | 47 | 29 | — | ||||||||||||||||||
Ownership Interest | 49.99 | % | 49.99 | % | 49.99 | % | 45 | % | 38 | % | — | % | ||||||||||||
Partnership’s interest in HPC’s Adjusted EBITDA | $ | 65 | $ | 72 | $ | 46 | $ | 21 | $ | 11 | $ | — | ||||||||||||
(2) 100% of MEP’s EBITDA is calculated as follows: | ||||||||||||||||||||||||
Net income | $ | 83 | $ | 85 | $ | 43 | $ | — | $ | — | $ | — | ||||||||||||
Add: |
Depreciation and amortization | 69 | 70 | 40 | — | — | — | ||||||||||||||||||
Interest expense, net | 52 | 51 | 29 | — | — | — | ||||||||||||||||||
MEP’s Adjusted EBITDA | 204 | 206 | 112 | — | — | — | ||||||||||||||||||
Ownership Interest | 50 | % | 50 | % | 49 | % | — | % | — | % | — | % | ||||||||||||
Partnership’s interest in MEP’s Adjusted EBITDA | $ | 102 | $ | 103 | $ | 56 | $ | — | $ | — | $ | — | ||||||||||||
(3) 100% of Lone Star’s Adjusted EBITDA is calculated as follows: | ||||||||||||||||||||||||
Net income | $ | 147 | $ | 94 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Add: | ||||||||||||||||||||||||
Depreciation and amortization | 52 | 32 | — | — | — | — | ||||||||||||||||||
Lone Star’s Adjusted EBITDA | 199 | 126 | — | — | — | — | ||||||||||||||||||
Ownership Interest | 30 | % | 30 | % | — | % | — | % | — | % | — | % | ||||||||||||
Partnership’s interest in Lone Star’s Adjusted EBITDA | $ | 60 | $ | 38 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
(4) 100% of Ranch JV’s Adjusted EBITDA is calculated as follows: | ||||||||||||||||||||||||
Net loss | $ | (2 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Add: | ||||||||||||||||||||||||
Depreciation and amortization | 1 | — | — | — | — | — | ||||||||||||||||||
Ranch JV’s Adjusted EBITDA | (1 | ) | — | — | — | — | — | |||||||||||||||||
Ownership Interest | 33.33 | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||
Partnership’s interest in Ranch JV’s Adjusted EBITDA | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Successor | Predecessor | |||||||||||||||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | Year Ended December 31, 2009 | Year Ended December 31, 2008 | |||||||||||||||||||
Reconciliation of net income (loss) to “Adjusted total segment margin” | ||||||||||||||||||||||||
Net income (loss) | $ | 34 | $ | 74 | $ | (6 | ) | $ | (5 | ) | $ | 140 | $ | 101 | ||||||||||
Add (deduct): | ||||||||||||||||||||||||
Operation and maintenance | 228 | 147 | 78 | 48 | 117 | 120 | ||||||||||||||||||
General and administrative | 100 | 67 | 44 | 37 | 57 | 51 | ||||||||||||||||||
Loss (gain) on assets sales, net | 3 | (2 | ) | — | — | (133 | ) | — | ||||||||||||||||
Management services termination fee | — | — | — | — | — | 4 | ||||||||||||||||||
Transaction expenses | — | — | — | — | — | 2 | ||||||||||||||||||
Depreciation and amortization | 252 | 169 | 76 | 42 | 100 | 93 | ||||||||||||||||||
Income from unconsolidated affiliates | (105 | ) | (120 | ) | (54 | ) | (16 | ) | (8 | ) | — | |||||||||||||
Interest expense, net | 122 | 103 | 48 | 35 | 78 | 63 | ||||||||||||||||||
Loss on debt refinancing, net | 8 | — | 16 | 2 | — | — | ||||||||||||||||||
Other income and deductions, net | (29 | ) | (17 | ) | 8 | 4 | 15 | — | ||||||||||||||||
Income tax expense (benefit) | — | — | 1 | — | (1 | ) | — | |||||||||||||||||
Discontinued operations | — | — | 1 | — | 3 | (14 | ) | |||||||||||||||||
Total segment margin | 613 | 421 | 212 | 147 | 368 | 420 | ||||||||||||||||||
Add (deduct): | ||||||||||||||||||||||||
Non-cash (gain) loss from commodity derivatives | (5 | ) | — | 23 | 7 | (7 | ) | (18 | ) | |||||||||||||||
Adjusted total segment margin | $ | 608 | $ | 421 | $ | 235 | $ | 154 | $ | 361 | $ | 402 |
• | Gathering and Processing. We provide “wellhead-to-market” services to producers of natural gas, which include transporting raw natural gas from the wellhead through gathering systems, processing raw natural gas to separate NGLs from the raw natural gas and selling or delivering the pipeline-quality natural gas and NGLs to various markets and pipeline systems. This segment also includes our 33.33% membership interest in Ranch JV, which processes natural gas delivered from the NGLs-rich Bone Spring and Avalon shale formations in west Texas. The Partnership completed the SUGS Acquisition on April 30, 2013. The Partnership completed the SUGS Acquisition on April 30, 2013; therefore, the Gathering and Processing segment amounts have been retrospectively adjusted to reflect the SUGS acquisition beginning March 26, 2012. |
• | Natural Gas Transportation. We own a 49.99% general partner interest in HPC, which owns RIGS, a 450-mile intrastate pipeline that delivers natural gas from northwest Louisiana to downstream pipelines and markets, a 50% membership interest in MEP, which owns a 500-mile interstate natural gas pipeline stretching from southeast Oklahoma through northeast Texas, northern Louisiana and central Mississippi to an interconnect with the Transcontinental Gas Pipe Line system in Butler, Alabama. This segment also includes Gulf States, which owns a 10-mile interstate pipeline that extends from Harrison County, Texas to Caddo Parish, Louisiana. |
• | NGL Services. We own a 30% membership interest in Lone Star, an entity owning a diverse set of midstream energy assets including pipelines, storage, fractionation and processing facilities located in Texas, Mississippi and Louisiana. |
• | Contract Services. We own and operate a fleet of compressors used to provide turn-key natural gas compression services for customer specific systems. We also own and operate a fleet of equipment used to provide treating services, such as carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration and BTU management. |
• | Corporate. The Corporate segment comprises our corporate offices. |
• | non-cash loss (gain) from commodity and embedded derivatives; |
• | non-cash unit-based compensation; |
• | loss (gain) on asset sales, net; |
• | loss on debt refinancing; |
• | other non-cash (income) expense, net; |
• | net income attributable to noncontrolling interest; and |
• | our interest in adjusted EBITDA from unconsolidated affiliates less income from unconsolidated affiliates. |
• | financial performance of our assets without regard to financing methods, capital structure or historical cost basis; |
• | 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; |
• | 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 |
• | the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities. |
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Change | Percent | |||||||||||
Total revenues | $ | 2,000 | $ | 1,434 | $ | 566 | 39 | % | ||||||
Cost of sales | 1,387 | 1,013 | 374 | 37 | ||||||||||
Total segment margin (1) | 613 | 421 | 192 | 46 | ||||||||||
Operation and maintenance | 228 | 147 | 81 | 55 | ||||||||||
General and administrative | 100 | 67 | 33 | 49 | ||||||||||
Loss (gain) on asset sales, net | 3 | (2 | ) | 5 | 250 | |||||||||
Depreciation and amortization | 252 | 169 | 83 | 49 | ||||||||||
Operating income | 30 | 40 | (10 | ) | 25 | |||||||||
Income from unconsolidated affiliates | 105 | 120 | (15 | ) | 13 | |||||||||
Interest expense, net | (122 | ) | (103 | ) | (19 | ) | 18 | |||||||
Loss on debt refinancing, net | (8 | ) | — | (8 | ) | 100 | ||||||||
Other income and deductions, net | 29 | 17 | 12 | 71 | ||||||||||
Income before income taxes | 34 | 74 | (40 | ) | 54 | |||||||||
Income tax expense | — | — | — | 100 | ||||||||||
Net income | $ | 34 | $ | 74 | $ | (40 | ) | 54 | ||||||
Net income attributable to the noncontrolling interest | (2 | ) | (2 | ) | — | — | ||||||||
Net income attributable to Regency Energy Partners LP | $ | 32 | $ | 72 | $ | (40 | ) | 56 | % | |||||
Gathering and processing segment margin | $ | 423 | $ | 233 | $ | 190 | 82 | % | ||||||
Non-cash gain from commodity derivatives | (5 | ) | — | (5 | ) | 100 | ||||||||
Adjusted gathering and processing segment margin | $ | 418 | $ | 233 | $ | 185 | 79 | |||||||
Natural gas transportation segment margin | 2 | 3 | (1 | ) | 33 | |||||||||
Contract services segment margin (2) | 189 | 185 | 4 | 2 | ||||||||||
Corporate segment margin | 20 | 17 | 3 | 18 | ||||||||||
Intersegment eliminations (2) | (21 | ) | (17 | ) | (4 | ) | 24 | |||||||
Adjusted total segment margin | $ | 608 | $ | 421 | $ | 187 | 44 | % |
(1) | For reconciliation of segment margin to the most directly comparable financial measure calculated and presented in accordance with GAAP, read “Item 6. Selected Financial Data.” |
(2) | Contract Services segment margin includes intersegment revenues of $21 million and $17 million for the years ended December 31, 2012 and 2011, respectively. These intersegment revenues were eliminated upon consolidation. |
• | $192 million increase in total segment margin, $145 million of which relates to the acquisition of SUGS. The remaining increase is mainly due to increased volumes in south and west Texas and north Louisiana in our Gathering and Processing segment. Although the decline in commodity prices lowered revenues and cost of sales, it had little impact to our total segment margin, as we continue to grow our fee-based revenues in south and west Texas as well as north Louisiana; and |
• | $12 million increase in other income and deductions, net, primarily due to a $16 million one-time producer payment received in March 2012 related to an assignment of certain contracts offset by a decrease in the non-cash gain on the embedded derivatives related to the Series A Preferred Units; offset by |
• | $81 million increase in operations and maintenance expense, $62 million of which relates to the acquisition of SUGS, with the remaining increase of $19 million primarily related to increases in employee costs, compressor maintenance costs, and ad valorem taxes due to growth in west and south Texas and north Louisiana; |
• | $33 million increase in general and administrative expenses, $37 million of which relates to the acquisition of SUGS, offset by a $4 million decrease primarily due to lower professional fees and office expenses; |
• | $83 million increase in depreciation and amortization expense, $51 million of which relates to the acquisition of SUGS. The remaining $32 million increase is primarily related to the completion of various organic growth projects placed in service during 2012, as well as a $12 million increase related to the accelerated depreciation and amortization of certain tangible and intangible assets and an out-of-period adjustment of $7 million recorded in March 2012 (further discussed below); |
• | $19 million increase in interest expense, net, primarily related to a full year of interest associated with the $500 million 2021 Notes issued in May 2011 as well as three months of interest associated with our $700 million 2023 Notes issued in October 2012; |
• | $8 million net loss on debt refinancing related to the redemption of 35% of our outstanding 2016 Notes at a price of 109.375% of the principal amount plus accrued interest in May 2012; and |
• | $15 million decrease in income from unconsolidated affiliates, $9 million of which relates to the acquisition of SUGS due to an impairment of the investment in Grey Ranch. The remaining decrease is primarily related to a decrease in equity income from HPC associated with non-cash asset impairment charges related to its idle property, plant, and equipment. |
• | Adjusted Gathering and Processing segment margin increased to $418 million for the year ended December 31, 2012 from $233 million for the year ended December 31, 2011, $144 million of which relates to the acquisition of SUGS with the remaining increase primarily due to the volume growth in south and west Texas and north Louisiana. Total Gathering and Processing segment throughput increased to 1,816,000 MMBtu/d during the year ended December 31, 2012 from 1,187,000 MMBtu/d during the year ended December 31, 2011. Total NGL gross production increased to 69,000 Bbls/d during the year ended December 31, 2012 from 32,000 Bbls/d during the year ended December 31, 2011; |
• | Contract Services segment margin increased to $189 million in the year ended December 31, 2012 from $185 million in 2011. Contract Services segment margin includes both revenues from external customers as well as intersegment revenues and is primarily based on revenue generating horsepower. Revenue generating horsepower, inclusive of intersegment revenue generating horsepower, increased to 919,000 as of December 31, 2012 from 846,000 as of December 31, 2011. The increase in revenue generating horsepower is primarily attributable to additional horsepower placed into service in south Texas for the Gathering and Processing segment to provide compression services to third party customers; |
• | Corporate segment margin increased to $20 million in the year ended December 31, 2012 from $17 million in the year ended December 31, 2011, which was primarily attributable to the increase in the management fee received from HPC beginning in April 2012; and |
• | Intersegment eliminations increased to $21 million in the year ended December 31, 2012 from $17 million in the year ended December 31, 2011. The increase was primarily due to an increase in transactions between Gathering and Processing and the Contract Services segments as a result of additional services provided in south Texas for the Gathering and Processing segment to provide compression and treating services to external customers. |
• | $62 million increase as a result of the acquisition of SUGS; |
• | $8 million increase in employee expenses for organic growth projects in south and west Texas and an increase in employee headcount; |
• | $5 million increase in compressor maintenance costs primarily related to an increase in materials and maintenance costs; and |
• | $5 million increase in ad valorem taxes primarily related to our organic growth projects. |
• | $37 million increase as a result of the acquisition of SUGS; |
• | $3 million decrease in professional fees associated with decreases in legal and consulting fees; |
• | $2 million increase in employee expenses, including primarily management incentive plan expenses and benefits; offset by |
• | $2 million decrease in office expenses related to lower rent expenses. |
Year Ended December 31, 2012 | |||||||||||||||||||||||
HPC | MEP | Lone Star | Ranch JV | Grey Ranch (1) | Total | ||||||||||||||||||
Net income (loss) | $ | 70 | $ | 83 | $ | 147 | (2 | ) | (18 | ) | |||||||||||||
Ownership interest | 49.99 | % | 50 | % | 30 | % | 33.33 | % | 50 | % | |||||||||||||
Share of unconsolidated affiliates’ net income (loss) | 35 | 42 | 44 | (1 | ) | (9 | ) | ||||||||||||||||
Less: Amortization of excess fair value of unconsolidated affiliates | (6 | ) | — | — | — | — | |||||||||||||||||
Income (loss) from unconsolidated affiliates | $ | 29 | $ | 42 | $ | 44 | $ | (1 | ) | $ | (9 | ) | $ | 105 | |||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||
HPC | MEP(2) | Lone Star(3) | Ranch JV(4) | Total | |||||||||||||||||||
Net income | $ | 109 | $ | 85 | $ | 94 | $ | — | |||||||||||||||
Ownership interest | 49.99 | % | 50 | % | 30 | % | 33.33 | % | |||||||||||||||
Share of unconsolidated affiliates’ net income | 55 | 43 | 28 | — | |||||||||||||||||||
Less: Amortization of excess fair value of unconsolidated affiliates | (6 | ) | — | — | — | ||||||||||||||||||
Income from unconsolidated affiliates | $ | 49 | $ | 43 | $ | 28 | $ | — | $ | 120 |
(1) | Grey Ranch was acquired as part of the SUGS Acquisition in March 2012. |
(2) | Ownership interest in MEP increased to 50% in September 2011 due to the purchase of an additional 0.1% interest. |
(3) | Represents Lone Star net income from May 2, 2011 (date of acquisition) to December 31, 2011. |
(4) | We acquired a 33.33% membership interest in Ranch JV in December 2011. |
Year Ended December 31, | |||||||||
2012 | 2011 | ||||||||
HPC | Throughput (MMBtu/d) | 854,388 | 1,321,266 | ||||||
MEP | Throughput (MMBtu/d) | 1,409,079 | 1,360,658 | ||||||
Lone Star | West Texas Pipeline – Total Volumes (Bbls/d) | 134,274 | 130,246 | (1) | |||||
Refinery Services – Geismar Throughput (Bbls/d) | 17,152 | 15,676 | (1) | ||||||
Ranch JV | Throughput (MMBtu/d) (2) | 3,274 | N/A |
(1) | All of Lone Star’s operational volumes represent the period from May 2, 2011 (acquisition date) to December 31, 2011. |
(2) | Ranch JV began operations in June 2012. |
Combined Year Ended December 31, 2010 | ||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||
Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | Combined Year Ended December 31, 2010 | Change | Percent | |||||||||||||||||
Total revenues | $ | 1,434 | $ | 716 | $ | 505 | $ | 1,221 | $ | 213 | 17 | % | ||||||||||
Cost of sales | 1,013 | 504 | 358 | 862 | 151 | 17 | ||||||||||||||||
Total segment margin (1) | 421 | 212 | 147 | 359 | 62 | 17 | ||||||||||||||||
Operation and maintenance | 147 | 78 | 48 | 126 | 21 | 18 | ||||||||||||||||
General and administrative | 67 | 44 | 37 | 81 | (14 | ) | 17 | |||||||||||||||
Gain on asset sales, net | (2 | ) | — | — | — | (2 | ) | 100 | ||||||||||||||
Depreciation and amortization | 169 | 76 | 42 | 118 | 51 | 43 | ||||||||||||||||
Operating income | 40 | 14 | 20 | 34 | 6 | 18 | ||||||||||||||||
Income from unconsolidated subsidiaries | 120 | 54 | 16 | 70 | 50 | 72 | ||||||||||||||||
Interest expense, net | (103 | ) | (48 | ) | (35 | ) | (83 | ) | (20 | ) | 24 | |||||||||||
Loss on debt refinancing, net | — | (16 | ) | (2 | ) | (18 | ) | 18 | 100 | |||||||||||||
Other income and deductions, net | 17 | (8 | ) | (4 | ) | (12 | ) | 29 | 243 | |||||||||||||
Income (loss) from continuing operations before income taxes | 74 | (4 | ) | (5 | ) | (9 | ) | 83 | 983 | |||||||||||||
Income tax expense | — | 1 | — | 1 | (1 | ) | 51 | |||||||||||||||
Net income (loss) from continuing operations | 74 | (5 | ) | (5 | ) | (10 | ) | 84 | 888 | |||||||||||||
Discontinued operations | — | (1 | ) | — | (1 | ) | 1 | 100 | ||||||||||||||
Net income (loss) | $ | 74 | $ | (6 | ) | $ | (5 | ) | $ | (11 | ) | $ | 85 | 774 | ||||||||
Net income attributable to the noncontrolling interest | (2 | ) | — | — | — | (2 | ) | 100 | ||||||||||||||
Net income (loss) attributable to Regency Energy Partners LP | $ | 72 | $ | (6 | ) | $ | (5 | ) | $ | (11 | ) | $ | 83 | 731 | % | |||||||
Gathering and processing segment margin | $ | 233 | $ | 110 | $ | 86 | $ | 196 | $ | 37 | 19 | % | ||||||||||
Non-cash loss from commodity derivatives | — | 23 | 7 | 30 | (30 | ) | 100 | |||||||||||||||
Adjusted gathering and processing segment margin | $ | 233 | $ | 133 | $ | 93 | $ | 226 | $ | 7 | 3 | |||||||||||
Natural gas transportation segment margin | 3 | 3 | 1 | 4 | (1 | ) | 25 | |||||||||||||||
Contract services segment margin (2) | 185 | 103 | 62 | 165 | 20 | 12 | ||||||||||||||||
Corporate segment margin | 17 | 10 | 7 | 17 | — | — | ||||||||||||||||
Intersegment eliminations (2) | (17 | ) | (14 | ) | (9 | ) | (23 | ) | 6 | 26 | ||||||||||||
Adjusted total segment margin | $ | 421 | $ | 235 | $ | 154 | $ | 389 | $ | 32 | 8 | % |
(1) | For reconciliation of segment margin to the most directly comparable financial measure calculated and presented in accordance with GAAP, read “Item 6. Selected Financial Data.” |
(2) | Contract Services segment margin includes intersegment revenues of $17 million and $23 million for the years ended December 31, 2011 and 2010 respectively. These intersegment revenues were eliminated upon consolidation. |
• | $62 million increase in total segment margin mainly due to increased volumes in south Texas and a full year of treating services within our Contract Services segment margin, which were acquired in September 2010; |
• | $50 million increase in income from unconsolidated affiliates primarily from our acquisitions of a 49.9% interest in MEP in May 2010 and a 30% interest in Lone Star in May 2011; |
• | $29 million increase in other income and deductions, net due to the non-cash gain on the embedded derivatives related to the Series A Preferred Units; |
• | the absence of an $18 million redemption premium paid in 2010 and recorded as a loss on debt refinancing, net; |
• | $14 million decrease in general and administrative expenses primarily due to the absence of a $10 million one-time charge of unit-based compensation expense in 2010 related to the vesting of outstanding LTIP grants upon the acquisition of our General Partner by ETE; offset by |
• | $51 million increase in depreciation and amortization expense primarily related to additional assets placed in service during 2011 and a full year of depreciation related to the fair value adjustment of our long-lived assets upon the acquisition of our General Partner; |
• | $21 million increase in operations and maintenance expense primarily due to increased compression and pipeline maintenance as well as a full year of operations of treating services within our Contract Services segment, which were acquired in September 2010; and |
• | $20 million increase in interest expense, net, primarily related to the interest associated with the $500 million 2021 Notes issued in May 2011 to partially fund the acquisition of our 30% interest in Lone Star as well as a full year of interest associated with the $600 million 2018 Notes issued in October 2010. |
• | Adjusted Gathering and Processing segment margin increased to $233 million for the year ended December 31, 2011 from $226 million for the year ended December 31, 2010 primarily due to the increased volumes in the Eagle Ford shale in south Texas and Permian Delaware Basin in west Texas. Total Gathering and Processing segment throughput increased to 1,187,000 MMBtu/d during the year ended December 31, 2011 from 996,800 MMBtu/d during the year ended December 31, 2010. Total NGL gross production increased to 32,000 Bbls/d during the year ended December 31, 2011 from 26,000 Bbls/d during the year ended December 31, 2010; |
• | Contract Services segment margin increased to $185 million in the year ended December 31, 2011 from $165 million in the year ended December 31, 2010. The increase was primarily attributable to the increased revenue generating horsepower provided to third parties as well as a full year of margin contributed from our treating services, which were acquired in September 2010. As of December 31, 2011, total revenue generating horsepower was 846,000, compared to 845,000 as of December 31, 2010; and |
• | Intersegment eliminations decreased to $17 million in the year ended December 31, 2011 from $23 million in the year ended December 31, 2010. The decrease was due to decreased intersegment transactions between the Gathering and Processing and the Contract Compression segment as a result of the transfer of certain compression units from the Contract Compression segment to the Gathering and Processing segment in the second quarter of 2011. |
• | $7 million increase in compressor maintenance costs primarily related to an increase in lube oil and materials costs; |
• | $6 million increase in pipeline maintenance expenses in our Gathering and Processing segment; |
• | $3 million increase in employee expenses primarily due to higher short-term incentive compensation accrual; |
• | $3 million increase in plant operating expenses primarily related to our contract treating services within our Contract Services segment, which was acquired in September 2010; and |
• | $2 million increase in consumable products. |
• | $13 million decrease in employee costs primarily due to the shared services integration and resulting reduction in headcount; and |
• | the absence of $10 million one-time charge in unit-based compensation primarily related to the vesting of outstanding LTIP grants upon the acquisition of our General Partner by ETE in May 2010; offset by |
• | $11 million increase in related party general and administrative expenses for the services agreements with Services Co. and ETC. |
Year Ended December 31, 2011 | |||||||||||||||
HPC | MEP | Lone Star(4) | Total | ||||||||||||
Net income | $ | 109 | $ | 85 | $ | 94 | |||||||||
Ownership interest | 49.99 | % | 50%(1) | 30 | % | ||||||||||
Share of unconsolidated affiliates’ net income | 55 | 43 | 28 | ||||||||||||
Less: Amortization of excess fair value of unconsolidated affiliates | (6 | ) | — | — | |||||||||||
Income from unconsolidated affiliates | $ | 49 | $ | 43 | $ | 28 | $ | 120 | |||||||
Year Ended December 31, 2010 | |||||||||||||||
HPC | MEP(2) | Lone Star | Total | ||||||||||||
Net income | $ | 107 | $ | 43 | N/A | ||||||||||
Ownership interest | 48.3%(3) | 49.9 | % | N/A | |||||||||||
Share of unconsolidated affiliates’ net income | 51 | 22 | N/A | ||||||||||||
Less: Amortization of excess fair value of unconsolidated affiliates | (3 | ) | — | N/A | |||||||||||
Income from unconsolidated affiliates | $ | 48 | $ | 22 | N/A | $ | 70 |
(1) | Ownership interest in MEP increased to 50% in September 2011 due to the purchase of an additional 0.1% interest. |
(2) | Represents the MEP net income from May 26, 2010 (date of acquisition) to December 31, 2010. |
(3) | Ownership interest in HPC increased from 43% to 49.99% on April 30, 2010. |
(4) | Represents Lone Star net income from May 2, 2011 (date of acquisition) to December 31, 2011. |
Year Ended December 31, | ||||||||
2011 | 2010 | |||||||
HPC | Throughput (MMBtu/d) | 1,321,266 | 1,277,881 | |||||
MEP | Throughput (MMBtu/d) | 1,360,658 | 1,408,778 | (2) | ||||
Lone Star | West Texas Pipeline – Total Volumes (Bbls/d) | 130,246 | (1) | N/A | ||||
Refinery Services – Geismar Throughput (Bbls/d) | 15,676 | (1) | N/A |
(1) | All of Lone Star’s operational volumes represent the period from May 2, 2011 (acquisition date) to December 31, 2011. |
(2) | Despite the decrease in throughput, MEP’s revenues remained relatively stable throughout the period, because almost all of MEP’s revenues are derived from firm transportation contracts with fixed fees. |
N/A: | We acquired a 30% membership interest in Lone Star on May 2, 2011. |
• | cash generated from operations and occasional asset sales; |
• | borrowings under our revolving credit facility; |
• | distributions received from unconsolidated affiliates; |
• | debt offerings; and |
• | issuance of additional partnership units. |
2013 | |||
Growth Capital Expenditures | |||
Gathering and Processing segment | $ | 465 | |
NGL Services segment | 175 | ||
Contract Services segment | 160 | ||
Total | $ | 800 | |
Maintenance Capital Expenditures, including our proportionate share related to our unconsolidated affiliates | $ | 45 |
• | an increase of $22 million in trade accounts payable net of trade accounts receivable, primarily due to the timing of payments and accruals for operating expenses and capital projects; |
• | an increase of $45 million in other current liabilities, net of other current assets $41 million of which is related to the acquisition of SUGS; |
• | an increase of $82 million in related party payables, $64 million of which is related to the acquisition of SUGS and an accrual of $23 million capital contribution to Lone Star; offset by |
• | an increase of $52 million in cash and cash equivalents, primarily due to the capital contributions to ELG from its joint venture partners to fund its capital expansion projects. |
• | the absence in 2011 of $358 million related to the redemption of our 2013 Senior Notes; |
• | a net increase in our revolving credit facility borrowings of $182 million; partially offset by |
• | an increase in Partner distributions of $70 million. |
• | A 75 bps decrease in pricing, with an additional 50 bps decrease upon the achievement of an investment grade rating. |
• | No limitation on the maximum amount that the loan parties may invest in joint ventures existing on the date of the credit agreement so long as the Partnership is in pro forma compliance with the financial covenants. |
• | The addition of a “Restricted Subsidiary” structure such that certain designated subsidiaries are not subject to the credit facility covenants and do not guarantee the obligations thereunder or pledge their assets in support thereof. |
• | The addition of provisions such that upon the achievement of an investment grade rating by the Partnership, the collateral package will be released; the facility will become unsecured; and the covenant package will be significantly reduced; |
• | An eight-quarter increase in the permitted Total Leverage Ratio; and |
• | After March 2015, an increase in the permitted total leverage ratio for the two fiscal quarters following any $50 million or greater acquisition. |
• | incur indebtedness; |
• | grant liens; |
• | enter into sale and leaseback transactions; |
• | make certain investments, loans and advances; |
• | dissolve or enter into a merger or consolidation; |
• | enter into asset sales or make acquisitions; |
• | enter into transactions with affiliates; |
• | prepay other indebtedness or amend organizational documents or transaction documents (as defined in the revolving credit facility); |
• | issue capital stock or create subsidiaries; or |
• | engage in any business other than those businesses in which it was engaged at the time of the effectiveness of the revolving credit facility or reasonable extensions thereof. |
December 1 of year ending: | Percentage of Redemption | |
2014 | 103.438% | |
2015 | 101.719% | |
2016 and thereafter | 100.000% |
July 15 of year ending: | Percentage of Redemption | |
2016 | 103.250% | |
2017 | 102.167% | |
2018 | 101.083% | |
2019 and thereafter | 100.000% |
July 15 of year ending: | Percentage of Redemption | |
2017 | 102.750% | |
2018 | 101.833% | |
2019 | 100.917% | |
2020 and thereafter | 100.000% |
• | incur additional indebtedness; |
• | pay distributions on, or repurchase or redeem equity interest; |
• | make certain investments; |
• | incur liens; |
• | enter into certain types of transactions with affiliates; and |
• | sell assets, consolidate or merge with or into other companies. |
• | incur additional indebtedness; |
• | pay distributions on, or repurchase or redeem equity interests; |
• | make certain investments; |
• | incur liens; |
• | enter into certain types of transactions with affiliates; and |
• | sell assets, consolidate or merge with or into other companies. |
Successor | Predecessor | |||||||||||||||
Year ended December 31, | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2012 to May 25, 2010 | ||||||||||||||
2012 | 2011 | |||||||||||||||
HPC | $ | 61 | $ | 65 | $ | 53 | $ | 12 | ||||||||
MEP | 75 | 83 | 43 | N/A | ||||||||||||
Lone Star | 68 | 22 | N/A | N/A |
Payments Due By Period | |||||||||||||||||||
Contractual Obligations | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | ||||||||||||||
Long-term debt (including interest) (1) | $ | 3,158 | $ | 137 | $ | 443 | $ | 395 | $ | 2,183 | |||||||||
Operating leases | 50 | 6 | 6 | 4 | 34 | ||||||||||||||
Purchase obligations (2) | 402 | 149 | 70 | 76 | 107 | ||||||||||||||
Distributions and redemption of Series A Preferred Units (3) | 153 | 6 | 7 | 7 | 133 | ||||||||||||||
Capital contribution commitments to unconsolidated affiliate (4) | 1 | 1 | — | — | — | ||||||||||||||
Other | 39 | 5 | 8 | 10 | 16 | ||||||||||||||
Total (5) | $ | 3,803 | $ | 304 | $ | 534 | $ | 492 | $ | 2,473 |
(1) | Assumes a constant LIBOR interest rate of 0.843% plus applicable margin (2.50% as of December 31, 2012) for our revolving credit facility. The principal of our outstanding senior notes ($1.96 billion) bears a weighted average fixed rate of 6.5%. |
(2) | Excludes physical and financial purchases of natural gas, NGLs, and other commodities due to the nature of both the price and volume components of such purchases, which vary on a daily and monthly basis. Additionally, we do not have contractual commitments for fixed price and/or fixed quantities of any material amount. |
(3) | Assumes that the Series A Preferred Units are redeemed for cash on September 2, 2029, and an annual distribution of $8 million. In July 2013, the Partnership was notified by two of the Series A Preferred Units holders of their election to convert their Series A Preferred Units to common units; these holders owned 2.4 million Series A Preferred Units and were excluded from the calculation above. |
(4) | Includes committed capital contributions to Ranch JV. |
(5) | Excludes deferred tax liabilities of $22 million as the amount payable by period cannot be readily estimated in light of net operating loss carryforwards and future business plans for the entity that generated the deferred tax liability. |
• | Level 1- unadjusted quoted prices for identical assets or liabilities in active accessible markets; |
• | Level 2- inputs that are observable in the marketplace other than those classified as Level 1; and |
• | Level 3- inputs that are unobservable in the marketplace and significant to the valuation. |
December 31, 2012 | |||||||||||||||||||||
Period | Underlying | Notional Volume/ Amount | We Pay | We Receive Weighted Average Price | Fair Value Asset/(Liability) | Effect of Hypothetical Change in Index* | |||||||||||||||
(in millions) | |||||||||||||||||||||
January 2013-December 2013 | Propane | 79 | (MBbls) | Index | 1.03 | ($/gallon) | 1 | 1 | |||||||||||||
January 2013-December 2014 | Normal Butane | 236 | (MBbls) | Index | 1.62 | ($/gallon) | — | 2 | |||||||||||||
January 2013-March 2013 | Natural Gasoline | 7 | (MBbls) | Index | 2.27 | ($/gallon) | — | — | |||||||||||||
January 2013-December 2014 | West Texas Intermediate Crude | 356 | (MBbls) | Index | 99.47 | ($/Bbl) | 2 | 3 | |||||||||||||
January 2013-December 2014 | Natural Gas | 8,395,000 | (MMBtu) | Index | 3.87 | ($/MMBtu) | 1 | 3 | |||||||||||||
Total Fair Value | $ | 4 |
* | Price risk sensitivities were calculated assuming a theoretical 10% change in prices regardless of term or historical relationships between the contractual price of the instrument and the underlying commodity price. Interest rate sensitivity assumes a 100 basis point increase or decrease in the LIBOR yield curve. The price sensitivity results are presented in absolute terms. |
Page | |
December 31, 2012 | December 31, 2011 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 53 | $ | 1 | |||
Trade accounts receivable, net of allowance of $1 and $1 | 115 | 44 | |||||
Accrued revenues | 107 | 68 | |||||
Related party receivables | 8 | 45 | |||||
Derivative assets | 4 | 4 | |||||
Other current assets | 53 | 25 | |||||
Total current assets | 340 | 187 | |||||
Property, Plant and Equipment: | |||||||
Gathering and transmission systems | 1,308 | 699 | |||||
Compression equipment | 1,326 | 847 | |||||
Gas plants and buildings | 568 | 195 | |||||
Other property, plant and equipment | 377 | 148 | |||||
Construction-in-progress | 507 | 192 | |||||
Total property, plant and equipment | 4,086 | 2,081 | |||||
Less accumulated depreciation | (400 | ) | (195 | ) | |||
Property, plant and equipment, net | 3,686 | 1,886 | |||||
Other Assets: | |||||||
Investment in unconsolidated affiliates | 2,214 | 1,925 | |||||
Long-term derivative assets | 1 | — | |||||
Other, net of accumulated amortization of debt issuance costs of $17 and $10 | 42 | 39 | |||||
Total other assets | 2,257 | 1,964 | |||||
Intangible Assets and Goodwill: | |||||||
Intangible assets, net of accumulated amortization of $74 and $45 | 712 | 741 | |||||
Goodwill | 1,128 | 790 | |||||
Total intangible assets and goodwill | 1,840 | 1,531 | |||||
TOTAL ASSETS | $ | 8,123 | $ | 5,568 | |||
LIABILITIES & PARTNERS’ CAPITAL AND NONCONTROLLING INTEREST | |||||||
Current Liabilities: | |||||||
Drafts payable | $ | 10 | $ | 3 | |||
Trade accounts payable | 122 | 73 | |||||
Accrued cost of gas and liquids | 133 | 85 | |||||
Related party payables | 95 | 13 | |||||
Deferred revenues | 17 | 16 | |||||
Derivative liabilities | 6 | 11 | |||||
Other current liabilities | 106 | 33 | |||||
Total current liabilities | 489 | 234 | |||||
Long-term derivative liabilities | 25 | 39 | |||||
Other long-term liabilities | 39 | 6 | |||||
Long-term debt, net | 2,157 | 1,687 | |||||
Commitments and contingencies | |||||||
Series A Preferred Units, redemption amount of $85 and $85 | 73 | 71 | |||||
Partners’ Capital and Noncontrolling Interest: | |||||||
Common units (174,574,175 and 161,233,046 units authorized; 170,951,457 and 157,437,608 units issued and outstanding at December 31, 2012 and 2011) | 3,207 | 3,173 | |||||
General partner interest | 326 | 330 | |||||
Predecessor equity | 1,733 | — | |||||
Accumulated other comprehensive loss | (3 | ) | (5 | ) | |||
Total partners’ capital | 5,263 | 3,498 | |||||
Noncontrolling interest | 77 | 33 | |||||
Total partners’ capital and noncontrolling interest | 5,340 | 3,531 | |||||
TOTAL LIABILITIES AND PARTNERS’ CAPITAL AND NONCONTROLLING INTEREST | $ | 8,123 | $ | 5,568 |
Successor | Predecessor | |||||||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | |||||||||||||
REVENUES | ||||||||||||||||
Gas sales, including related party amounts of $42, $23, $3, and $— | $ | 508 | $ | 456 | $ | 291 | $ | 228 | ||||||||
NGL sales, including related party amounts of $28, $365, $137, and $— | 991 | 603 | 238 | 153 | ||||||||||||
Gathering, transportation and other fees, including related party amounts of $29, $24, $14, and $12 | 401 | 351 | 179 | 115 | ||||||||||||
Net realized and unrealized gain (loss) from derivatives | 23 | (19 | ) | (8 | ) | (1 | ) | |||||||||
Other, including related party amounts of $1, $10, $3, and $— | 77 | 43 | 16 | 10 | ||||||||||||
Total revenues | 2,000 | 1,434 | 716 | 505 | ||||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||||||
Cost of sales, including related party amounts of $35, $22, $13, and $7 | 1,387 | 1,013 | 504 | 358 | ||||||||||||
Operation and maintenance | 228 | 147 | 78 | 48 | ||||||||||||
General and administrative, including related party amounts of $15, $17, $6, and $— | 100 | 67 | 44 | 37 | ||||||||||||
Loss (gain) on asset sales, net | 3 | (2 | ) | — | — | |||||||||||
Depreciation and amortization | 252 | 169 | 76 | 42 | ||||||||||||
Total operating costs and expenses | 1,970 | 1,394 | 702 | 485 | ||||||||||||
OPERATING INCOME | 30 | 40 | 14 | 20 | ||||||||||||
Income from unconsolidated affiliates | 105 | 120 | 54 | 16 | ||||||||||||
Interest expense, net | (122 | ) | (103 | ) | (48 | ) | (35 | ) | ||||||||
Loss on debt refinancing, net | (8 | ) | — | (16 | ) | (2 | ) | |||||||||
Other income and deductions, net | 29 | 17 | (8 | ) | (4 | ) | ||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 34 | 74 | (4 | ) | (5 | ) | ||||||||||
Income tax expense | — | — | 1 | — | ||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | $ | 34 | $ | 74 | $ | (5 | ) | $ | (5 | ) | ||||||
DISCONTINUED OPERATIONS | ||||||||||||||||
Net loss from operations of east Texas assets | — | — | (1 | ) | — | |||||||||||
NET INCOME (LOSS) | $ | 34 | $ | 74 | $ | (6 | ) | $ | (5 | ) | ||||||
Net income attributable to noncontrolling interest | (2 | ) | (2 | ) | — | — | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO REGENCY ENERGY PARTNERS LP | $ | 32 | $ | 72 | $ | (6 | ) | $ | (5 | ) | ||||||
Amounts attributable to Series A Preferred Units | 10 | 8 | 5 | 3 | ||||||||||||
General partner’s interest, including IDRs | 9 | 7 | 3 | 1 | ||||||||||||
Pre-acquisition income from SUGS allocated to predecessor equity | (14 | ) | — | — | — | |||||||||||
Limited partners’ interest in net income (loss) | $ | 27 | $ | 57 | $ | (14 | ) | $ | (9 | ) | ||||||
Basic and diluted income (loss) from continuing operations per unit: | ||||||||||||||||
Amount allocated to common units | $ | 27 | $ | 57 | $ | (12 | ) | $ | (9 | ) | ||||||
Weighted average number of common units outstanding | 167,492,735 | 145,490,869 | 130,619,554 | 92,788,319 | ||||||||||||
Basic income (loss) from continuing operations per common unit | $ | 0.16 | $ | 0.39 | $ | (0.09 | ) | $ | (0.10 | ) | ||||||
Diluted income (loss) from continuing operations per common unit | $ | 0.13 | $ | 0.32 | $ | (0.09 | ) | $ | (0.10 | ) |
Distributions per unit | $ | 1.84 | $ | 1.81 | $ | 0.89 | $ | 0.89 | ||||||||
Basic and diluted loss on discontinued operations per unit | $ | — | $ | — | $ | (0.01 | ) | $ | — | |||||||
Basic and diluted net income (loss) per unit: | ||||||||||||||||
Amount allocated to common units | $ | 27 | $ | 57 | $ | (14 | ) | $ | (9 | ) | ||||||
Basic net income (loss) per common unit | $ | 0.16 | $ | 0.39 | $ | (0.10 | ) | $ | (0.10 | ) | ||||||
Diluted net income (loss) per common unit | $ | 0.13 | $ | 0.32 | $ | (0.10 | ) | $ | (0.10 | ) |
Successor | Predecessor | |||||||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | |||||||||||||
Net income (loss) | $ | 34 | $ | 74 | $ | (6 | ) | $ | (5 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||
Net cash flow hedge amounts reclassified to earnings | 6 | 19 | — | 2 | ||||||||||||
Change in fair value of cash flow hedges | (4 | ) | (13 | ) | (11 | ) | 18 | |||||||||
Total other comprehensive income (loss) | $ | 2 | $ | 6 | $ | (11 | ) | $ | 20 | |||||||
Comprehensive income (loss) | $ | 36 | $ | 80 | $ | (17 | ) | $ | 15 | |||||||
Comprehensive income (loss) attributable to noncontrolling interest | 2 | 2 | — | — | ||||||||||||
Comprehensive income (loss) attributable to Regency Energy Partners LP | $ | 34 | $ | 78 | $ | (17 | ) | $ | 15 |
Successor | Predecessor | |||||||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Net income (loss) | $ | 34 | $ | 74 | $ | (6 | ) | $ | (5 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | ||||||||||||||||
Depreciation and amortization, including debt issuance cost amortization and bond premium amortization | 260 | 175 | 79 | 49 | ||||||||||||
Write-off of debt issuance costs and bond premium | (1 | ) | — | (1 | ) | 2 | ||||||||||
Income from unconsolidated affiliates | (105 | ) | (120 | ) | (54 | ) | (16 | ) | ||||||||
Derivative valuation changes | (12 | ) | (21 | ) | 33 | 12 | ||||||||||
Loss (gain) on asset sales, net | 3 | (2 | ) | — | — | |||||||||||
Unit-based compensation expenses | 5 | 3 | 2 | 12 | ||||||||||||
Cash flow changes in current assets and liabilities: | ||||||||||||||||
Trade accounts receivable, accrued revenues and related party receivables | — | (8 | ) | — | (11 | ) | ||||||||||
Other current assets and other current liabilities | 10 | 11 | (13 | ) | 25 | |||||||||||
Trade accounts payable, accrued cost of gas and liquids, related party payables and deferred revenues | 18 | 23 | (15 | ) | 9 | |||||||||||
Distributions received from unconsolidated affiliates | 121 | 119 | 57 | 12 | ||||||||||||
Cash flow changes in other assets and liabilities | (9 | ) | — | (2 | ) | — | ||||||||||
Net cash flows provided by operating activities | 324 | 254 | 80 | 89 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Capital expenditures | (560 | ) | (406 | ) | (159 | ) | (64 | ) | ||||||||
Capital contributions to unconsolidated affiliates | (356 | ) | (53 | ) | (86 | ) | (20 | ) | ||||||||
Distributions in excess of earnings of unconsolidated affiliates | 83 | 74 | 59 | — | ||||||||||||
Acquisition of investment in unconsolidated affiliates, net of cash received | — | (594 | ) | 5 | (75 | ) | ||||||||||
Acquisitions, net of cash of $-, $-, $2, and $- | — | — | (192 | ) | — | |||||||||||
Proceeds from asset sales | 26 | 24 | 76 | 11 | ||||||||||||
Net cash flows used in investing activities | (807 | ) | (955 | ) | (297 | ) | (148 | ) | ||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Net (repayments) borrowings under revolving credit facility | (140 | ) | 47 | (334 | ) | 199 | ||||||||||
Proceeds from issuance of senior notes | 700 | 500 | 600 | — | ||||||||||||
Redemption of senior notes | (88 | ) | — | (358 | ) | — | ||||||||||
Debt issuance costs | (15 | ) | (10 | ) | (11 | ) | (16 | ) | ||||||||
Partner contributions | — | — | 28 | — | ||||||||||||
Partner distributions | (322 | ) | (274 | ) | (119 | ) | (86 | ) | ||||||||
Acquisition of assets between entities under common control in excess of historical cost | — | — | — | (17 | ) | |||||||||||
Contributions (distributions) from/to noncontrolling interest | 42 | — | — | (1 | ) | |||||||||||
Contributions from Southern Union | 51 | — | — | — | ||||||||||||
Drafts payable | 4 | 2 | — | — | ||||||||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding | (1 | ) | — | 1 | (5 | ) | ||||||||||
Common unit offerings, net of issuance costs | 312 | 436 | 400 | — | ||||||||||||
Distributions to Series A Preferred Units | (8 | ) | (8 | ) | (4 | ) | (2 | ) | ||||||||
Net cash flows provided by financing activities | 535 | 693 | 203 | 72 | ||||||||||||
Net change in cash and cash equivalents | 52 | (8 | ) | (14 | ) | 13 | ||||||||||
Cash and cash equivalents at beginning of period | 1 | 9 | 23 | 10 | ||||||||||||
Cash and cash equivalents at end of period | $ | 53 | $ | 1 | $ | 9 | $ | 23 | ||||||||
Supplemental cash flow information: | ||||||||||||||||
Non-cash capital expenditures and capital contributions to unconsolidated affiliates | $ | 159 | $ | 24 | $ | 20 | $ | 18 | ||||||||
Issuance of common units for investment in unconsolidated affiliate | — | — | 584 | — | ||||||||||||
Deemed contribution from acquisition of assets between entities under common control | — | — | 9 | — | ||||||||||||
Release of escrow payable from restricted cash | — | — | 1 | 1 | ||||||||||||
Interest paid, net of amounts capitalized | 112 | 83 | 58 | 5 | ||||||||||||
Income taxes paid | — | 2 | 1 | — |
Units | ||||||||||||||||||||||
Predecessor | Common | Common Unitholders | General Partner Interest | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | ||||||||||||||||
Balance— December 31, 2009 | 93,188,353 | $ | 1,212 | $ | 19 | $ | (2 | ) | $ | 14 | $ | 1,243 | ||||||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding | 152,075 | (5 | ) | — | — | — | (5 | ) | ||||||||||||||
Unit-based compensation expenses | — | 12 | — | — | — | 12 | ||||||||||||||||
Accrued distributions to phantom units | — | (1 | ) | — | — | — | (1 | ) | ||||||||||||||
Acquisition of assets between entities under common control in excess of historical costs | — | — | (17 | ) | — | — | (17 | ) | ||||||||||||||
Partner distributions | — | (83 | ) | (3 | ) | — | — | (86 | ) | |||||||||||||
Distributions to noncontrolling interest | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||
Net (loss) income | — | (6 | ) | 1 | — | — | (5 | ) | ||||||||||||||
Distributions to Series A Preferred Units | — | (2 | ) | — | — | — | (2 | ) | ||||||||||||||
Net cash flow hedge amounts reclassified to earnings | — | — | — | 2 | — | 2 | ||||||||||||||||
Net change in fair value of cash flow hedges | — | — | — | 19 | — | 19 | ||||||||||||||||
Balance—May 25, 2010 | 93,340,428 | $ | 1,127 | $ | — | $ | 19 | $ | 13 | $ | 1,159 |
Units | ||||||||||||||||||||||||||
Successor | Common | Common Unitholders | General Partner Interest | Predecessor Equity | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | |||||||||||||||||||
Balance—May 26, 2010 | 93,340,428 | $ | 2,074 | $ | 305 | $ | — | $ | — | $ | 31 | $ | 2,410 | |||||||||||||
Private common unit offerings, net of costs | 26,266,791 | 584 | — | — | — | — | 584 | |||||||||||||||||||
Public common unit offerings, net of costs | 17,537,500 | 400 | — | — | — | — | 400 | |||||||||||||||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding | 42,417 | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||||
Proceeds from exercise of common unit options | 94,200 | 2 | — | — | — | — | 2 | |||||||||||||||||||
Unit-based compensation expenses | — | 2 | — | — | — | — | 2 | |||||||||||||||||||
Acquisition of assets between entities under common control below historical costs | — | — | 9 | — | — | — | 9 | |||||||||||||||||||
Partner contributions | — | 7 | 21 | — | — | — | 28 | |||||||||||||||||||
Partner distributions | — | (114 | ) | (5 | ) | — | — | — | (119 | ) | ||||||||||||||||
Net (loss) income | — | (9 | ) | 3 | — | — | — | (6 | ) | |||||||||||||||||
Distributions to Series A Preferred Units | — | (4 | ) | — | — | — | — | (4 | ) | |||||||||||||||||
Net change in fair value of cash flow hedges | — | — | — | — | (11 | ) | — | (11 | ) | |||||||||||||||||
Balance—December 31, 2010 | 137,281,336 | 2,941 | 333 | — | (11 | ) | 31 | 3,294 | ||||||||||||||||||
Common unit offerings, net of costs | 20,000,001 | 436 | — | — | — | — | 436 | |||||||||||||||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding | 156,271 | — | — | — | — | — | — | |||||||||||||||||||
Unit-based compensation expenses | — | 3 | — | — | — | — | 3 | |||||||||||||||||||
Partner distributions | — | (264 | ) | (10 | ) | — | — | — | (274 | ) | ||||||||||||||||
Net income | — | 65 | 7 | — | — | 2 | 74 | |||||||||||||||||||
Distributions to Series A Preferred Units | — | (8 | ) | — | — | — | — | (8 | ) | |||||||||||||||||
Net cash flow hedge amounts reclassified to earnings | — | — | — | — | 19 | — | 19 | |||||||||||||||||||
Net change in fair value of cash flow hedges | — | — | — | — | (13 | ) | — | (13 | ) | |||||||||||||||||
Balance—December 31, 2011 | 157,437,608 | 3,173 | 330 | — | (5 | ) | 33 | 3,531 | ||||||||||||||||||
Common unit offerings, net of costs | 13,341,129 | 312 | — | — | — | — | 312 | |||||||||||||||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding | 172,720 | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||||
Unit-based compensation expenses | — | 5 | — | — | — | — | 5 | |||||||||||||||||||
Partner distributions | — | (309 | ) | (13 | ) | — | — | — | (322 | ) | ||||||||||||||||
Net income (loss) | — | 37 | 9 | (14 | ) | — | 2 | 34 | ||||||||||||||||||
Contributions from noncontrolling interest | — | — | — | — | — | 42 | 42 | |||||||||||||||||||
Distributions to Series A Preferred Units | — | (8 | ) | — | — | — | — | (8 | ) | |||||||||||||||||
Accretion of Series A Preferred Units | — | (2 | ) | — | — | — | — | (2 | ) | |||||||||||||||||
Net cash flow hedge amounts reclassified to earnings | — | — | — | — | 5 | — | 5 | |||||||||||||||||||
Contribution of net investment to unitholders | — | — | — | 1,747 | (3 | ) | — | 1,744 | ||||||||||||||||||
Balance—December 31, 2012 | 170,951,457 | $ | 3,207 | $ | 326 | $ | 1,733 | $ | (3 | ) | $ | 77 | $ | 5,340 |
May 26, 2010 | |||
Fair value of limited partners’ interest, based on the number of outstanding Partnership common units and the trading price on May 26, 2010 | $ | 2,074 | |
Fair value of consideration paid for general partner interest | 305 | ||
Noncontrolling interest | 31 | ||
$ | 2,410 |
May 26, 2010 | |||
Working capital | $ | (3 | ) |
Gathering and transmission systems | 471 | ||
Compression equipment | 746 | ||
Gas plants and buildings | 117 | ||
Other property, plant and equipment | 100 | ||
Construction-in-progress | 114 | ||
Other long-term assets | 38 | ||
Investment in unconsolidated affiliate | 739 | ||
Intangible assets | 666 | ||
Goodwill | 790 | ||
$ | 3,778 | ||
Less: | |||
Series A Preferred Units | 71 | ||
Fair value of long-term debt | 1,240 | ||
Other long-term liabilities | 57 | ||
Total fair value of partners’ capital | $ | 2,410 |
April 30, 2013 | |||
Current assets | $ | 113 | |
Property, plant and equipment, net | 1,608 | ||
Goodwill | 337 | ||
Other non-current assets | 1 | ||
Total assets acquired | $ | 2,059 | |
Less: | |||
Current liabilities | (93 | ) | |
Non-current liabilities | (36 | ) | |
Net assets acquired | $ | 1,930 |
Year Ended December 31, 2012 | |||
Revenues: | |||
Partnership | $ | 1,339 | |
SUGS (1) | 661 | ||
Combined | $ | 2,000 | |
Net income (loss): | |||
Partnership | $ | 48 | |
SUGS (1) | (14 | ) | |
Combined | $ | 34 |
(1) | The amounts attributable to SUGS are from the period from March 26, 2012 to December 31, 2012, the period that SUGS and Regency were under common control. |
Functional Class of Property | Useful Lives (Years) | |
Gathering and Transmission Systems | 10 - 50 | |
Compression Equipment | 2 - 30 | |
Gas Plants and Buildings | 5 - 35 | |
Other property, plant and equipment | 3 - 15 |
Distribution Date | Cash Distribution (per common unit) | |||
November 14, 2012 | $ | 0.460 | ||
August 14, 2012 | 0.460 | |||
May 14, 2012 | 0.460 | |||
February 13, 2012 | 0.460 | |||
November 14, 2011 | 0.455 | |||
August 12, 2011 | 0.450 | |||
May 13, 2011 | 0.445 | |||
February 14, 2011 | 0.445 |
Quarter Ended | Record Date | Payment Date | Cash Distributions (per common unit) | |||||
December 31, 2012 | February 7, 2013 | February 14, 2013 | $ | 0.46 | ||||
March 31, 2013 | May 6, 2013 | May 13, 2013 | $ | 0.46 | ||||
June 30, 2013 | August 5, 2013 | August 14, 2013 | $ | 0.465 |
For the Year Ended December 31, 2012 | For the Year Ended December 31, 2011 | ||||||||||||||||||||
Income (Numerator) | Units (Denominator) | Per-Unit Amount | Income (Numerator) | Units (Denominator) | Per-Unit Amount | ||||||||||||||||
Basic income per unit | |||||||||||||||||||||
Limited Partners’ interest in net income | $ | 27 | 167,492,735 | $ | 0.16 | $ | 57 | 145,490,869 | $ | 0.39 | |||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||
Common unit options | — | 10,854 | — | 19,192 | |||||||||||||||||
Phantom units * | — | 223,325 | — | 148,388 | |||||||||||||||||
Series A Preferred Units | (5 | ) | 4,658,700 | (10 | ) | 4,632,389 | |||||||||||||||
Diluted income per unit | $ | 22 | 172,385,614 | $ | 0.13 | $ | 47 | 150,290,838 | $ | 0.32 |
* | Amount assumes maximum conversion rate for market condition awards. |
Successor | Predecessor | |||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | |||||||||
Restricted (non-vested) common units | — | — | — | 396,918 | ||||||||
Common unit options | — | — | 259,650 | 298,400 | ||||||||
Phantom units * | — | — | 366,489 | 369,346 | ||||||||
Series A Preferred Units | — | — | 4,584,192 | 4,584,192 |
* | Amount assumes maximum conversion rate for market condition awards. |
September 1, 2010 | |||
Cash and cash equivalents | $ | 2 | |
Trade accounts receivable | 7 | ||
Gas plants and buildings | 81 | ||
Intangible assets | 119 | ||
Total assets acquired | $ | 209 | |
Trade accounts payable | (8 | ) | |
Deferred revenues | (7 | ) | |
Other current liabilities | (1 | ) | |
Net assets acquired | $ | 193 |
December 31, 2012 | December 31, 2011 | ||||||
HPC | $ | 650 | $ | 682 | |||
MEP | 581 | 614 | |||||
Lone Star | 948 | 629 | |||||
Ranch JV | 35 | — | |||||
Grey Ranch | — | — | |||||
$ | 2,214 | $ | 1,925 |
Successor | |||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||
HPC | MEP | Lone Star | Ranch JV | Grey Ranch | |||||||||||||||
Contributions to unconsolidated affiliates | $ | — | $ | — | $ | 343 | $ | 36 | $ | — | |||||||||
Distributions from unconsolidated affiliates | 61 | 75 | 68 | — | — | ||||||||||||||
Share of unconsolidated affiliates’ net income | 35 | 42 | 44 | (1 | ) | (9 | ) | ||||||||||||
Amortization of excess fair value of investment (1) | (6 | ) | — | — | — | — |
Year Ended December 31, 2011 | |||||||||||||||||
HPC | MEP(2) | Lone Star(3) | Ranch JV | Grey Ranch | |||||||||||||
Contributions to unconsolidated affiliates | $ | — | $ | — | $ | 645 | $ | — | N/A | ||||||||
Purchase of additional interest in unconsolidated affiliates | — | 1 | — | — | N/A | ||||||||||||
Distributions from unconsolidated affiliates | 65 | 83 | 22 | — | N/A | ||||||||||||
Return of investment received | — | — | 23 | — | N/A | ||||||||||||
Share of unconsolidated affiliates’ net income | 55 | 43 | 28 | — | N/A | ||||||||||||
Amortization of excess fair value of investment (1) | (6 | ) | — | — | — | N/A |
Period from Acquisition (May 26, 2010) to December 31, 2010 | |||||||||||||
HPC | MEP | Lone Star | Ranch JV | Grey Ranch | |||||||||
Contributions to unconsolidated affiliates | $ | — | $ | 86 | N/A | N/A | N/A | ||||||
Distributions from unconsolidated affiliates | 53 | 43 | N/A | N/A | N/A | ||||||||
Return of investment received | 20 | — | N/A | N/A | N/A | ||||||||
Share of unconsolidated affiliates’ net income | 36 | 21 | N/A | N/A | N/A | ||||||||
Amortization of excess fair value of investment (1) | (3 | ) | — | N/A | N/A | N/A |
Predecessor | |||||||||||
Period from January 1, 2010 to May 25, 2010 | |||||||||||
HPC | MEP | Lone Star | Ranch JV | Grey Ranch | |||||||
Contributions to unconsolidated affiliates | $ | 20 | N/A | N/A | N/A | N/A | |||||
Purchase of additional interest in unconsolidated affiliates | 75 | N/A | N/A | N/A | N/A | ||||||
Distributions from unconsolidated affiliates | 12 | N/A | N/A | N/A | N/A | ||||||
Share of unconsolidated affiliates’ net income | 16 | N/A | N/A | N/A | N/A |
(1) | As discussed in Note 1, the Partnership’s investment in HPC was adjusted to its fair value on May 26, 2010 and the excess fair value over net book value was comprised of two components: (1) $155 million was attributed to HPC’s long-lived assets and is being amortized as a reduction of income from unconsolidated affiliates over the useful lives of the respective assets, which vary from 15 to 30 years, and (2) $32 million could not be attributed to a specific asset and therefore will not be amortized in future periods. |
(2) | In September 2011, the Partnership purchased an additional 0.1% interest in MEP from ETP for $1 million in cash, bringing the total membership interest to 50%. |
(3) | For the period from initial contribution, May 2, 2011, to December 31, 2011. |
N/A | The Partnership acquired a 33.33% membership interest in Ranch JV in December 2011, a 30% interest in Lone Star in May 2011, a 49.9% interest in MEP in May 2010, and a 50% interest in Grey Ranch in March 2012. |
Assets | Liabilities | ||||||||||||||
December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | ||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||
Current amounts | |||||||||||||||
Commodity contracts | $ | — | $ | 4 | $ | 5 | $ | 10 | |||||||
Total cash flow hedging instruments | — | 4 | 5 | 10 | |||||||||||
Derivatives not designated as cash flow hedges | |||||||||||||||
Current amounts | |||||||||||||||
Commodity contracts | 4 | — | 1 | — | |||||||||||
Interest rate contracts | — | — | — | 1 | |||||||||||
Long-term amounts | |||||||||||||||
Commodity contracts | 1 | — | — | — | |||||||||||
Embedded derivatives in Series A Preferred Units | — | — | 25 | 39 | |||||||||||
Total derivatives not designated as cash flow hedges | 5 | — | 26 | 40 | |||||||||||
Total derivatives | $ | 5 | $ | 4 | $ | 31 | $ | 50 |
Successor | Predecessor | |||||||||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from May 26, 2010 to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | |||||||||||||||
Change in Value Recognized in AOCI on Derivatives (Effective Portion) | ||||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||
Commodity derivatives | $ | (4 | ) | $ | (13 | ) | $ | (11 | ) | $ | 14 | |||||||
Location of Gain/(Loss) Recognized in Income | Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||
Commodity derivatives | Revenue | $ | 6 | $ | (19 | ) | $ | — | $ | (5 | ) | |||||||
Interest rate swap derivatives | Interest expense | — | — | — | (1 | ) | ||||||||||||
$ | 6 | $ | (19 | ) | $ | — | $ | (6 | ) | |||||||||
Location of Gain/(Loss) Recognized in Income | Amount of Gain/(Loss) Recognized in Income on Ineffective Portion | |||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||
Commodity derivatives | Revenue | $ | — | $ | — | $ | — | $ | (1 | ) |
Location of Gain/(Loss) Recognized in Income | Amount of Gain/(Loss) from De-designation Amortized from AOCI into Income | |||||||||||||||||
Derivatives not designated in a hedging relationship: | ||||||||||||||||||
Commodity derivatives | Revenue | $ | (5 | ) | $ | — | $ | — | $ | 4 | ||||||||
Location of Gain/(Loss) Recognized in Income | Amount of Gain/(Loss) Recognized in Income on Derivatives | |||||||||||||||||
Derivatives not designated in a hedging relationship: | ||||||||||||||||||
Commodity derivatives | Revenue | $ | 16 | $ | — | $ | (8 | ) | $ | 1 | ||||||||
Interest rate swap derivatives | Interest expense | — | — | (4 | ) | (1 | ) | |||||||||||
Embedded derivatives | Other income & deductions | 14 | 18 | (8 | ) | (4 | ) | |||||||||||
$ | 30 | $ | 18 | $ | (20 | ) | $ | (4 | ) |
December 31, 2012 | December 31, 2011 | ||||||
Senior notes | $ | 1,965 | $ | 1,355 | |||
Revolving loans | 192 | 332 | |||||
Total | 2,157 | 1,687 | |||||
Less: current portion | — | — | |||||
Long-term debt | $ | 2,157 | $ | 1,687 | |||
Availability under revolving credit facility: | |||||||
Total credit facility limit | $ | 1,150 | $ | 900 | |||
Revolving loans | (192 | ) | (332 | ) | |||
Letters of credit | (12 | ) | (19 | ) | |||
Total available | $ | 946 | $ | 549 |
Year Ended December 31, | Amount | |||
2013 | $ | — | ||
2014 | 192 | |||
2015 | — | |||
2016 | 162 | |||
2017 | — | |||
Thereafter | 1,800 | |||
Total | $ | 2,154 | * |
* | Excludes unamortized premiums of $3 million as of December 31, 2012. |
• | A 75 bps decrease in pricing, with an additional 50 bps decrease upon the achievement of an investment grade rating. |
• | No limitation on the maximum amount that the loan parties may invest in joint ventures existing on the date of the credit agreement so long as the Partnership is in pro forma compliance with the financial covenants. |
• | The addition of a “Restricted Subsidiary” structure such that certain designated subsidiaries are not subject to the credit facility covenants and do not guarantee the obligations thereunder or pledge their assets in support thereof. |
• | The addition of provisions such that upon the achievement of an investment grade rating by the Partnership, the collateral package will be released; the facility will become unsecured; and the covenant package will be significantly reduced; |
• | An eight-quarter increase in the permitted Total Leverage Ratio; and |
• | After March 2015, an increase in the permitted total leverage ratio for the two fiscal quarters following any $50 million or greater acquisition. |
• | incur indebtedness; |
• | grant liens; |
• | enter into sale and leaseback transactions; |
• | make certain investments, loans and advances; |
• | dissolve or enter into a merger or consolidation; |
• | enter into asset sales or make acquisitions; |
• | enter into transactions with affiliates; |
• | prepay other indebtedness or amend organizational documents or transaction documents (as defined in the revolving credit facility); |
• | issue capital stock or create subsidiaries; or |
• | engage in any business other than those businesses in which it was engaged at the time of the effectiveness of the revolving credit facility or reasonable extensions thereof. |
December 1 of year ending: | Percentage of Redemption | |
2014 | 103.438% | |
2015 | 101.719% | |
2016 and thereafter | 100.000% |
July 15 of year ending: | Percentage of Redemption | |
2016 | 103.250% | |
2017 | 102.167% | |
2018 | 101.083% | |
2019 and thereafter | 100.000% |
October 15 of year ending: | Percentage of Redemption | |
2017 | 102.750% | |
2018 | 101.833% | |
2019 | 100.917% | |
2020 and thereafter | 100.000% |
• | incur additional indebtedness; |
• | pay distributions on, or repurchase or redeem equity interest; |
• | make certain investments; |
• | incur liens; |
• | enter into certain types of transactions with affiliates; and |
• | sell assets, consolidate or merge with or into other companies. |
• | incur additional indebtedness; |
• | pay distributions on, or repurchase or redeem equity interests; |
• | make certain investments; |
• | incur liens; |
• | enter into certain types of transactions with affiliates; and |
• | sell assets, consolidate or merge with or into other companies. |
Customer Relations | Trade Names | Total | |||||||||
Balance at January 1, 2011 | $ | 707 | $ | 63 | $ | 770 | |||||
Amortization | (26 | ) | (3 | ) | (29 | ) | |||||
Balance at December 31, 2011 | 681 | 60 | 741 | ||||||||
Amortization | (26 | ) | (3 | ) | (29 | ) | |||||
Balance at December 31, 2012 | $ | 655 | $ | 57 | $ | 712 |
• | Level 1—unadjusted quoted prices for identical assets or liabilities in active accessible markets; |
• | Level 2—inputs that are observable in the marketplace other than those classified as Level 1; and |
• | Level 3—inputs that are unobservable in the marketplace and significant to the valuation. |
Fair Value Measurement at December 31, 2012 | Fair Value Measurement at December 31, 2011 | ||||||||||||||||||||||
Fair Value Total | Level 2 | Level 3 | Fair Value Total | Level 2 | Level 3 | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Commodity Derivatives: | |||||||||||||||||||||||
Natural Gas | $ | 2 | $ | 2 | $ | — | $ | 4 | $ | 4 | $ | — | |||||||||||
Natural Gas Liquids | 1 | 1 | — | — | — | — | |||||||||||||||||
Condensate | 2 | 2 | — | — | — | — | |||||||||||||||||
Total Assets | $ | 5 | $ | 5 | $ | — | $ | 4 | $ | 4 | $ | — | |||||||||||
Liabilities | |||||||||||||||||||||||
Commodity Derivatives: | |||||||||||||||||||||||
Natural Gas | 5 | 5 | — | — | — | — | |||||||||||||||||
Natural Gas Liquids | 1 | 1 | — | 9 | 9 | — | |||||||||||||||||
Condensate | — | — | — | 2 | 2 | — | |||||||||||||||||
Embedded Derivatives in Series A Preferred Units | 25 | — | 25 | 39 | — | 39 | |||||||||||||||||
Total Liabilities | $ | 31 | $ | 6 | $ | 25 | $ | 50 | $ | 11 | $ | 39 |
Unobservable Input | December 31, 2012 | |||
Credit Spread | 6.49 | % | ||
Volatility | 21.38 | % |
Embedded Derivatives in Series A Preferred Units | |||
Balance at January, 2011 | $ | 57 | |
Change in fair value | (18 | ) | |
Balance at December 31, 2011 | 39 | ||
Change in fair value | (14 | ) | |
Balance at December 31, 2012 | $ | 25 |
For the year ending December 31, | Operating | |||
2013 | $ | 6 | ||
2014 | 3 | |||
2015 | 3 | |||
2016 | 2 | |||
2017 | 2 | |||
Thereafter | 34 | |||
Total minimum lease payments | $ | 50 |
December 31, 2012 | December 31, 2011 | |||||||
Current | $ | 5 | $ | — | ||||
Noncurrent | 7 | — | ||||||
Total environmental liabilities | $ | 12 | $ | — |
Units | Amount | |||||
Balance at January 1, 2011 | 4,371,586 | $ | 71 | |||
Accretion to redemption value | — | — | ||||
Balance at December 31, 2011 | 4,371,586 | 71 | ||||
Accretion to redemption value | — | 2 | ||||
Balance at December 31, 2012 | 4,371,586 | $ | 73 |
December 31, 2012 | December 31, 2011 | ||||||
Related party receivables | |||||||
ETE and its subsidiaries | $ | 5 | $ | 1 | |||
HPC | 1 | 1 | |||||
EPD | N/A | 42 | |||||
Ranch JV | 2 | — | |||||
Other | — | 1 | |||||
Total related party receivables | $ | 8 | $ | 45 | |||
Related party payables | |||||||
ETE and its subsidiaries | $ | 94 | $ | 11 | |||
HPC | 1 | — | |||||
Other | — | 2 | |||||
Total related party payables | $ | 95 | $ | 13 |
N/A | In January 2012, as described below, EPD sold a significant portion of its ownership in ETE’s common units and currently owns less than 5% of ETE’s outstanding common units. During 2012, EPD was not considered a related party. |
Successor | Predecessor | |||||||||||||||||
Reportable Segment | Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from May 26, 2010 to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | ||||||||||||||
Customer | ||||||||||||||||||
Customer A | Gathering and Processing | $ | 367 | $ | 366 | $ | 132 | $ | 88 | |||||||||
Customer B | Gathering and Processing | — | — | * | 52 | |||||||||||||
Customer C | Gathering and Processing | 451 | — | — | — | |||||||||||||
Supplier | ||||||||||||||||||
Supplier A | Gathering and Processing | 171 | 133 | — | — |
* | Amounts are less than 10% of the total revenue or cost of sales. |
Successor | Predecessor | |||||||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | |||||||||||||
External Revenue | ||||||||||||||||
Gathering and Processing | $ | 1,797 | $ | 1,226 | $ | 607 | $ | 439 | ||||||||
Natural Gas Transportation | 1 | 1 | — | — | ||||||||||||
NGL Services | — | — | — | — | ||||||||||||
Contract Services | 183 | 190 | 99 | 59 | ||||||||||||
Corporate | 19 | 17 | 10 | 7 | ||||||||||||
Eliminations | — | — | — | — | ||||||||||||
Total | $ | 2,000 | $ | 1,434 | $ | 716 | $ | 505 | ||||||||
Intersegment Revenue | ||||||||||||||||
Gathering and Processing | $ | — | $ | — | $ | — | $ | — | ||||||||
Natural Gas Transportation | — | — | — | — | ||||||||||||
NGL Services | — | — | — | — | ||||||||||||
Contract Services | 21 | 17 | 14 | 9 | ||||||||||||
Corporate | — | — | — | — | ||||||||||||
Eliminations | (21 | ) | (17 | ) | (14 | ) | (9 | ) | ||||||||
Total | $ | — | $ | — | $ | — | $ | — | ||||||||
Cost of Sales | ||||||||||||||||
Gathering and Processing | $ | 1,373 | $ | 993 | $ | 497 | $ | 353 | ||||||||
Natural Gas Transportation | (1 | ) | (2 | ) | (3 | ) | (1 | ) | ||||||||
NGL Services | — | — | — | — | ||||||||||||
Contract Services | 15 | 22 | 10 | 6 | ||||||||||||
Corporate | — | — | — | — | ||||||||||||
Eliminations | — | — | — | — | ||||||||||||
Total | $ | 1,387 | $ | 1,013 | $ | 504 | $ | 358 | ||||||||
Segment Margin | ||||||||||||||||
Gathering and Processing | $ | 423 | $ | 233 | $ | 110 | $ | 86 | ||||||||
Natural Gas Transportation | 2 | 3 | 3 | 1 | ||||||||||||
NGL Services | — | — | — | — | ||||||||||||
Contract Services | 189 | 185 | 103 | 62 | ||||||||||||
Corporate | 20 | 17 | 10 | 7 | ||||||||||||
Eliminations | (21 | ) | (17 | ) | (14 | ) | (9 | ) | ||||||||
Total | $ | 613 | $ | 421 | $ | 212 | $ | 147 | ||||||||
Operation and Maintenance | ||||||||||||||||
Gathering and Processing | $ | 183 | $ | 98 | $ | 54 | $ | 33 | ||||||||
Natural Gas Transportation | — | — | — | — | ||||||||||||
NGL Services | — | — | 1 | — | ||||||||||||
Contract Services | 66 | 66 | 37 | 24 | ||||||||||||
Corporate | — | — | — | — | ||||||||||||
Eliminations | (21 | ) | (17 | ) | (14 | ) | (9 | ) | ||||||||
Total | $ | 228 | $ | 147 | $ | 78 | $ | 48 | ||||||||
Depreciation and Amortization | ||||||||||||||||
Gathering and Processing | $ | 159 | $ | 87 | $ | 46 | $ | 25 | ||||||||
Natural Gas Transportation | — | — | — | — | ||||||||||||
NGL Services | — | — | — | — | ||||||||||||
Contract Services | 86 | 78 | 29 | 16 | ||||||||||||
Corporate | 7 | 4 | 1 | 1 | ||||||||||||
Eliminations | — | — | — | — | ||||||||||||
Total | $ | 252 | $ | 169 | $ | 76 | $ | 42 | ||||||||
Successor | Predecessor | |||||||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | |||||||||||||
Income from Unconsolidated Affiliates | ||||||||||||||||
Gathering and Processing | $ | (10 | ) | $ | — | $ | — | $ | — | |||||||
Natural Gas Transportation | 71 | 92 | 54 | 16 | ||||||||||||
NGL Services | 44 | 28 | — | — | ||||||||||||
Contract Services | — | — | — | — | ||||||||||||
Corporate | — | — | — | — | ||||||||||||
Eliminations | — | — | — | — | ||||||||||||
Total | $ | 105 | $ | 120 | $ | 54 | $ | 16 | ||||||||
Expenditures for Long-Lived Assets | ||||||||||||||||
Gathering and Processing | $ | 395 | $ | 282 | $ | 93 | $ | 44 | ||||||||
Natural Gas Transportation | — | — | — | — | ||||||||||||
NGL Services | — | — | — | — | ||||||||||||
Contract Services | 164 | 120 | 62 | 18 | ||||||||||||
Corporate | 1 | 4 | 4 | 2 | ||||||||||||
Eliminations | — | — | — | — | ||||||||||||
Total | $ | 560 | $ | 406 | $ | 159 | $ | 64 | ||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||
Assets | ||||||||||||||||
Gathering and Processing | $ | 4,210 | $ | 1,960 | ||||||||||||
Natural Gas Transportation | 1,232 | 1,297 | ||||||||||||||
NGL Services | 948 | 629 | ||||||||||||||
Contract Services | 1,672 | 1,621 | ||||||||||||||
Corporate | 61 | 61 | ||||||||||||||
Eliminations | — | — | ||||||||||||||
Total | $ | 8,123 | $ | 5,568 | ||||||||||||
Investment in Unconsolidated Affiliates | ||||||||||||||||
Gathering and Processing | $ | 35 | $ | — | ||||||||||||
Natural Gas Transportation | 1,231 | 1,296 | ||||||||||||||
NGL Services | 948 | 629 | ||||||||||||||
Contract Services | — | — | ||||||||||||||
Corporate | — | — | ||||||||||||||
Eliminations | — | — | ||||||||||||||
Total | $ | 2,214 | $ | 1,925 | ||||||||||||
Goodwill | ||||||||||||||||
Gathering and Processing | $ | 651 | $ | 313 | ||||||||||||
Natural Gas Transportation | — | — | ||||||||||||||
NGL Services | — | — | ||||||||||||||
Contract Services | 477 | 477 | ||||||||||||||
Corporate | — | — | ||||||||||||||
Eliminations | — | — | ||||||||||||||
Total | $ | 1,128 | $ | 790 |
Successor | Predecessor | |||||||||||||||
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | |||||||||||||
Total segment margin | $ | 613 | $ | 421 | $ | 212 | $ | 147 | ||||||||
Operation and maintenance | (228 | ) | (147 | ) | (78 | ) | (48 | ) | ||||||||
General and administrative | (100 | ) | (67 | ) | (44 | ) | (37 | ) | ||||||||
(Loss) gain on assets sales, net | (3 | ) | 2 | — | — | |||||||||||
Depreciation and amortization | (252 | ) | (169 | ) | (76 | ) | (42 | ) | ||||||||
Income from unconsolidated affiliates | 105 | 120 | 54 | 16 | ||||||||||||
Interest expense, net | (122 | ) | (103 | ) | (48 | ) | (35 | ) | ||||||||
Loss on debt refinancing, net | (8 | ) | — | (16 | ) | (2 | ) | |||||||||
Other income and deductions, net | 29 | * | 17 | (8 | ) | (4 | ) | |||||||||
Income (loss) from continuing operations before income taxes | $ | 34 | $ | 74 | $ | (4 | ) | $ | (5 | ) |
* | Other income and deductions, net for the year ended December 31, 2012, included a one-time producer payment of $16 million related to an assignment of certain contracts. |
2012 | |||||||
Common Unit Options | Units | Weighted Average Exercise Price | |||||
Outstanding at the beginning of period | 156,850 | $ | 21.99 | ||||
Forfeited or expired | (300 | ) | 23.73 | ||||
Outstanding at end of period | 156,550 | 21.96 | |||||
Exercisable at the end of the period | 156,550 | ||||||
2011 | |||||||
Common Unit Options | Units | Weighted Average Exercise Price | |||||
Outstanding at the beginning of period | 201,950 | $ | 21.93 | ||||
Exercised | (38,300 | ) | 20.84 | ||||
Forfeited or expired | (6,800 | ) | 26.72 | ||||
Outstanding at end of period | 156,850 | 21.99 | |||||
Exercisable at the end of the period | 156,850 | ||||||
2010 | |||||||
Common Unit Options | Units | Weighted Average Exercise Price | |||||
Outstanding at the beginning of period | 306,651 | $ | 21.50 | ||||
Exercised | (100,200 | ) | 20.60 | ||||
Forfeited or expired | (4,501 | ) | 23.73 | ||||
Outstanding at end of period | 201,950 | 21.93 | |||||
Exercisable at the end of the period | 201,950 |
2010 | |||||||
Restricted (Non-Vested) Common Units | Units | Weighted Average Grant Date Fair Value | |||||
Outstanding at the beginning of the period | 464,009 | $ | 28.36 | ||||
Granted | — | — | |||||
Vested | (444,759 | ) | 28.19 | ||||
Forfeited or expired | (19,250 | ) | 32.35 | ||||
Outstanding at the end of period | — | — |
2012 | |||||||
Phantom Units | Units | Weighted Average Grant Date Fair Value | |||||
Outstanding at the beginning of the period | 1,086,393 | $ | 24.51 | ||||
Service condition grants | 503,625 | 21.39 | |||||
Vested service condition | (223,258 | ) | 24.71 | ||||
Vested market condition | (10,200 | ) | 19.52 | ||||
Forfeited service condition | (120,868 | ) | 24.85 | ||||
Forfeited market condition | (4,350 | ) | 19.52 | ||||
Total outstanding at end of period | 1,231,342 | 23.22 | |||||
2011 | |||||||
Phantom Units | Units | Weighted Average Grant Date Fair Value | |||||
Outstanding at the beginning of the period | 742,517 | $ | 23.61 | ||||
Service condition grants | 596,320 | 24.55 | |||||
Vested service condition | (142,520 | ) | 24.73 | ||||
Vested market condition | (8,550 | ) | 19.52 | ||||
Forfeited service condition | (88,474 | ) | 24.99 | ||||
Forfeited market condition | (12,900 | ) | 19.52 | ||||
Total outstanding at end of period | 1,086,393 | 24.51 |
2010 | |||||||
Phantom Units | Units | Weighted Average Grant Date Fair Value | |||||
Outstanding at the beginning of the period | 301,700 | $ | 8.63 | ||||
Service condition grants | 716,200 | 24.72 | |||||
Market condition grants | 148,500 | 11.89 | |||||
Vested service condition | (166,173 | ) | 11.63 | ||||
Vested market condition | (200,610 | ) | 5.85 | ||||
Forfeited service condition | (18,787 | ) | 20.18 | ||||
Forfeited market condition | (38,313 | ) | 11.43 | ||||
Total outstanding at end of period | 742,517 | 23.61 |
2012 | Quarter Ended December 31 | Quarter Ended September 30 | Quarter Ended June 30 | Quarter Ended March 31 | ||||||||||||
Operating revenues | $ | 587 | $ | 527 | $ | 511 | $ | 375 | ||||||||
Operating (loss) income | 8 | 5 | 22 | (5 | ) | |||||||||||
Net (loss) income attributable to Regency Energy Partners LP | (7 | ) | (1 | ) | 27 | 15 | ||||||||||
Earnings per common units: | ||||||||||||||||
Basic net (loss) income per common unit | (0.08 | ) | (0.04 | ) | 0.14 | 0.15 | ||||||||||
Diluted net (loss) income per common unit | (0.08 | ) | (0.04 | ) | 0.10 | 0.14 | ||||||||||
2011 | Quarter Ended December 31 | Quarter Ended September 30 | Quarter Ended June 30 | Quarter Ended March 31 | ||||||||||||
Operating revenues | $ | 370 | $ | 390 | $ | 357 | $ | 317 | ||||||||
Operating income | 13 | 14 | 5 | 8 | ||||||||||||
Net income attributable to Regency Energy Partners LP | 13 | 30 | 15 | 14 | ||||||||||||
Earnings per common units: | ||||||||||||||||
Basic net income per common unit | 0.06 | 0.18 | 0.08 | 0.08 | ||||||||||||
Diluted net income per common unit | 0.06 | 0.09 | 0.07 | 0.07 |
Leases (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
5 Months Ended | 7 Months Ended | 12 Months Ended | |
---|---|---|---|---|
May 25, 2010
|
Dec. 31, 2010
|
Dec. 31, 2012
|
Dec. 31, 2011
|
|
Operating Leased Assets | ||||
Future annual rent expense | $ 50 | |||
Operating Leases, Rent Expense | $ 2 | $ 3 | $ 11 | $ 3 |
Commitments And Contingencies Environmental Exit Costs (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
|
Environmental Remediation Expense | $ 1 | |
Current | 5 | 0 |
Noncurrent | 7 | 0 |
Total environmental liabilities | 12 | 0 |
Jal No. 4 Facility [Member]
|
||
Alleged Violations, Air Regulation, Cost | 1 | |
Jal No 3 Facility [Member]
|
||
Alleged Violations, Air Regulation, Cost | $ 7 |
Quarterly Financial Data (Unaudited) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | 7 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2010
Successor
|
Dec. 31, 2012
Successor
|
Dec. 31, 2011
Successor
|
|
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | $ 587 | $ 527 | $ 511 | $ 375 | $ 370 | $ 390 | $ 357 | $ 317 | $ 2,000 | $ 716 | $ 2,000 | $ 1,434 |
Operating (loss) income | 8 | 5 | 22 | (5) | 13 | 14 | 5 | 8 | 14 | 30 | 40 | |
Net (loss) income attributable to Regency Energy Partners LP | $ (7) | $ (1) | $ 27 | $ 15 | $ 13 | $ 30 | $ 15 | $ 14 | $ (6) | $ 32 | $ 72 | |
Basic net (loss) income per common unit | (0.08) | (0.04) | 0.14 | 0.15 | 0.06 | 0.18 | 0.08 | 0.08 | (0.09) | 0.16 | 0.39 | |
Diluted net (loss) income per common unit | (0.08) | (0.04) | 0.10 | 0.14 | 0.06 | 0.09 | 0.07 | 0.07 | (0.09) | 0.13 | 0.32 |
Derivative Instruments
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Derivative Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments Policies. The Partnership established comprehensive risk management policies and procedures to monitor and manage the market risks associated with commodity prices, counterparty credit, and interest rates. The General Partner is responsible for delegation of transaction authority levels, and the Audit and Risk Committee of the General Partner is responsible for the overall management of these risks, including monitoring exposure limits. The Audit and Risk Committee receives regular briefings on exposures and overall risk management in the context of market activities. Commodity Price Risk. The Partnership is a net seller of NGLs, condensate and natural gas as a result of its gathering and processing operations. The prices of these commodities are impacted by changes in the supply and demand as well as market focus. Both the Partnership’s profitability and cash flow are affected by the inherent volatility of these commodities which could adversely affect its ability to make distributions to its unitholders. The Partnership manages this commodity price exposure through an integrated strategy that includes management of its contract portfolio, matching sales prices of commodities with purchases, optimization of its portfolio by monitoring basis and other price differentials in operating areas, and the use of derivative contracts. In some cases, the Partnership may not be able to match pricing terms or to cover its risk to price exposure with financial hedges, and it may be exposed to commodity price risk. Speculative positions with derivative contracts are prohibited under the Partnership’s policies. The Partnership has swap contracts settled against NGLs (propane, butane, and natural gasoline), condensate and natural gas market prices. The Partnership also had put options settled against ethane, which expired in December 2012. On January 1, 2012, the Partnership de-designated its swap contracts and began accounting for these contracts using the mark-to-market method of accounting. As of December 31, 2012, the Partnership had $3 million in net hedging losses related to these de-designated swaps in AOCI, the majority of which will be amortized to earnings over the next 12 months. As of December 31, 2012, SUGS had outstanding receive-fixed natural gas price swaps with a total notional amount of 4,562,500 MMBtu for 2013. These natural gas price swaps are accounted for as cash flow hedges, with effective portion of changes in their fair value recorded to AOCI and reclassified into revenues in the same period which the forecasted natural gas sales impact earnings. As of April 30, 2013, in connection with the SUGS Acquisition, these outstanding hedges were terminated. Interest Rate Risk. The Partnership is exposed to variable interest rate risk as a result of borrowings under its revolving credit facility. The Partnership's $250 million interest rate swaps expired in April 2012. As of December 31, 2012, the Partnership had $192 million of outstanding borrowings exposed to variable interest rate risk. Credit Risk. The Partnership’s resale of NGLs, condensate, and natural gas exposes it to credit risk, as the margin on any sale is generally a very small percentage of the total sales price. Therefore, a credit loss can be very large relative to overall profitability on these transactions. The Partnership attempts to ensure that it issues credit only to creditworthy counterparties and that in appropriate circumstances any such extension of credit is backed by adequate collateral, such as a letter of credit or parental guarantee from a parent company with potentially better credit. The Partnership is exposed to credit risk from its derivative counterparties. The Partnership does not require collateral from these counterparties. The Partnership deals primarily with financial institutions when entering into financial derivatives, and utilizes master netting agreements that allow for netting of swap contract receivables and payables in the event of default by either party. If the Partnership’s counterparties failed to perform under existing swap contracts, the Partnership’s maximum loss as of December 31, 2012 was $5 million, which would be reduced by $1 million due to the netting feature. The Partnership has elected to present assets and liabilities under master netting agreements gross on the condensed consolidated balance sheets. Embedded Derivatives. The Series A Preferred Units contain embedded derivatives which are required to be bifurcated and accounted for separately, such as the holders’ conversion option and the Partnership’s call option. These embedded derivatives are accounted for using mark-to-market accounting. The Partnership does not expect the embedded derivatives to affect its cash flows. The Partnership’s derivative assets and liabilities, including credit risk adjustments, for the years ended December 31, 2012 and 2011 are detailed below:
The Partnership’s statement of operations for the years ended December 31, 2012, 2011 and 2010 was impacted by derivative instruments activities as detailed below:
|
Summary of Significant Accounting Policies (Narrative) (Details) (USD $)
|
1 Months Ended | 3 Months Ended | 7 Months Ended | 12 Months Ended | 19 Months Ended | 7 Months Ended | 12 Months Ended | 5 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Jun. 30, 2013
|
Dec. 31, 2010
|
Dec. 31, 2013
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2011
|
Dec. 31, 2010
Successor
|
Dec. 31, 2012
Successor
|
Dec. 31, 2011
Successor
|
Dec. 31, 2009
Successor
|
May 25, 2010
Predecessor
|
Dec. 31, 2012
Minimum
Gathering and Transmission Systems
|
Dec. 31, 2012
Minimum
Compression Equipment
|
Dec. 31, 2012
Minimum
Gas Plants and Buildings
|
Dec. 31, 2012
Minimum
Other property, plant and equipment
|
Dec. 31, 2012
Minimum
Successor
|
Dec. 31, 2013
Maximum
|
Dec. 31, 2012
Maximum
Gathering and Transmission Systems
|
Dec. 31, 2012
Maximum
Compression Equipment
|
Dec. 31, 2012
Maximum
Gas Plants and Buildings
|
Dec. 31, 2012
Maximum
Other property, plant and equipment
|
Dec. 31, 2012
Maximum
Successor
|
|
Property, Plant and Equipment | |||||||||||||||||||||||
Deferred Tax Liabilities, Net | $ 22,000,000 | $ 22,000,000 | $ 6,000,000 | $ 6,000,000 | |||||||||||||||||||
Property, Plant and Equipment, Useful Life | 10 years 0 months 0 days | 2 years 0 months 0 days | 5 years 0 months 0 days | 3 years 0 months 0 days | 50 years 0 months 0 days | 30 years 0 months 0 days | 35 years 0 months 0 days | 15 years 0 months 0 days | |||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||
Inventory | 27,000,000 | 27,000,000 | 21,000,000 | 21,000,000 | |||||||||||||||||||
Accrued interest payable | 30,000,000 | 30,000,000 | 27,000,000 | 27,000,000 | |||||||||||||||||||
Interest Costs Capitalized | 7,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||||||||
Asset Retirement Obligation | 5,000,000 | 5,000,000 | |||||||||||||||||||||
Depreciation expense | 60,000,000 | 219,000,000 | 138,000,000 | 37,000,000 | |||||||||||||||||||
Depreciation out of period adjustment | 3,000,000 | 4,000,000 | 7,000,000 | ||||||||||||||||||||
Intangible assets useful life, minimum | 20 years 0 months 0 days | 30 years 0 months 0 days | |||||||||||||||||||||
Contributions by employer | 2,000,000 | 4,000,000 | 3,000,000 | 0 | |||||||||||||||||||
Current federal tax expense (benefit) | 1,000,000 | 0 | 0 | ||||||||||||||||||||
Deferred federal income tax expense (benefit) | 0 | 0 | 0 | ||||||||||||||||||||
Profit Sharing Plan Employer Percentage Contribution | 3.00% | ||||||||||||||||||||||
Compensation | 125,000 | ||||||||||||||||||||||
Current Income Tax Expense (Benefit) | 1,000,000 | 1,000,000 | |||||||||||||||||||||
Deferred Income Tax Expense (Benefit) | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Consolidated Statements of Partners' Capital and Noncontrolling Interest (Successor) (USD $)
In Millions, except Share data |
Total
USD ($)
|
Successor
USD ($)
|
Successor
Common Units
|
Successor
Common Unitholders
USD ($)
|
Successor
General Partner Interest
USD ($)
|
Successor
Predecessor Equity [Member]
USD ($)
|
Successor
Accumulated Other Comprehensive Income (Loss)
USD ($)
|
Successor
Noncontrolling Interest
USD ($)
|
---|---|---|---|---|---|---|---|---|
Balance at May. 25, 2010 | $ 2,410 | $ 2,074 | $ 305 | $ 0 | $ 31 | |||
Balance - (in Units) at May. 25, 2010 | 93,340,428 | |||||||
Private common unit offering, units | 26,266,791 | |||||||
Private common unit offerings, net of costs | 584 | 584 | ||||||
Public common units offerings, units | 17,537,500 | |||||||
Public common unit offerings, net of costs | 400 | 400 | ||||||
Common unit offerings, net of costs | 400 | |||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding - units | 42,417 | |||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding | (1) | (1) | ||||||
Partners capital common unit options exercise, units | 94,200 | |||||||
Proceeds from exercise of common unit options | 2 | 2 | ||||||
Unit-based compensation expenses | 2 | 2 | ||||||
Acquisition of assets between entities under common control below historical costs | 9 | 9 | ||||||
Partner contributions | 28 | 7 | 21 | |||||
Partner distributions | (119) | 114 | 5 | |||||
Contributions from noncontrolling interest | 0 | |||||||
Net income (loss) | (6) | 9 | (3) | 0 | ||||
Distributions to Series A Preferred Units | (4) | (4) | 0 | |||||
Net cash flow hedge amounts reclassified to earnings | 0 | |||||||
Net change in fair value of cash flow hedges | (11) | (11) | ||||||
Balance at Dec. 31, 2010 | 3,294 | 2,941 | 333 | (11) | 31 | |||
Balance - (in Units) at Dec. 31, 2010 | 137,281,336 | |||||||
Partners' Capital Account, Units, Sale of Units | 20,000,001 | |||||||
Common unit offerings, net of costs | 436 | 436 | ||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding - units | 156,271 | |||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding | 0 | 0 | ||||||
Unit-based compensation expenses | 3 | 3 | ||||||
Partner contributions | 0 | |||||||
Partner distributions | (274) | 264 | 10 | |||||
Contributions from noncontrolling interest | 0 | |||||||
Net income (loss) | 74 | 65 | 7 | 2 | ||||
Distributions to Series A Preferred Units | (8) | (8) | ||||||
Net cash flow hedge amounts reclassified to earnings | 19 | 19 | ||||||
Net change in fair value of cash flow hedges | (13) | (13) | ||||||
Predecessor Equity | 0 | |||||||
Balance at Dec. 31, 2011 | 3,531 | 3,531 | 3,173 | 330 | (5) | 33 | ||
Balance - (in Units) at Dec. 31, 2011 | 157,437,608 | |||||||
Partners' Capital Account, Units, Sale of Units | 13,341,129 | |||||||
Common unit offerings, net of costs | 312 | 312 | ||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding - units | 172,720 | |||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding | (1) | (1) | ||||||
Common Units Issued Inconnection With Equity Distribution Agreement | 15 | |||||||
Unit-based compensation expenses | 5 | 5 | ||||||
Partner contributions | 0 | |||||||
Partner distributions | (322) | (309) | (13) | |||||
Contributions from noncontrolling interest | 42 | |||||||
Net income (loss) | 34 | 34 | 37 | 9 | (14) | 2 | ||
Contributions from noncontrolling interest | 42 | 42 | ||||||
Distributions to Series A Preferred Units | (8) | 8 | ||||||
Accretion of Series A Preferred Units | (2) | 2 | ||||||
Net cash flow hedge amounts reclassified to earnings | 5 | 5 | ||||||
Predecessor Equity | 1,733 | |||||||
Contribution of Net Investment to Unitholders | 1,744 | 1,747 | (3) | |||||
Balance at Dec. 31, 2012 | 5,340 | 5,340 | 3,207 | 326 | (3) | 77 | ||
Balance - (in Units) at Dec. 31, 2012 | 170,951,457 | |||||||
Common Units Issued Inconnection With Equity Distribution Agreement | $ 128 | |||||||
Balance at Jun. 30, 2013 |
Related Party Transactions
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions As of December 31, 2012 and 2011, details of the Partnership’s related party receivables and related party payables were as follows:
__________________
Transactions with ETE and its subsidiaries. Under a May 26, 2010 service agreement with Services Co., Services Co. performs certain services for the Partnership. The Partnership pays Services Co.’s direct expenses for these services, plus an annual fee of $10 million, and receives the benefit of any cost savings recognized for these services. The services agreement has a five year term from May 26, 2010 to May 26, 2015, subject to earlier termination rights in the event of a change in control, the failure to achieve certain cost savings for the Partnership or upon an event of default. Also, the Partnership, together with the General Partner and RGS entered into an operation and service agreement (the “Operations Agreement”) with ETC. Under the Operations Agreement, ETC will perform certain operations, maintenance and related services reasonably required to operate and maintain certain facilities owned by the Partnership. Pursuant to the Operations Agreement, the Partnership will reimburse ETC for actual costs and expenses incurred in connection with the provision of these services based on an annual budget agreed-upon by both parties. The Operations Agreement has an initial term of one year and automatically renews on a year-to-year basis upon expiration of the initial term. The Partnership incurred total service fees of $17 million, $17 million and $6 million for the years ended December 31, 2012 and 2011 and during the period from May 26, 2010 to December 31, 2010, respectively. In conjunction with distributions made by the Partnership to the limited and general partner interests, ETE received cash distributions of $62 million, $57 million and $28 million for the years ended December 31, 2012 and 2011 and during the period from May 26, 2010 to December 31, 2010, respectively. During the period from May 26, 2010 to December 31, 2010, the Partnership received cash of $7 million from ETE, which represents the portion of the amount of the Partnership’s common unit distribution to be paid to ETE for the period of time that those units were not outstanding (April 1, 2010 to May 25, 2010). The General Partner has the right, but not the obligation, to contribute a proportionate amount of capital to the Partnership to maintain its general partner interest. ETE made capital contributions aggregating to $21 million, to maintain the General Partner’s 2% interest in the Partnership for the period from May 26, 2010 to December 31, 2010. No capital contributions were contributed during the years ended December 31, 2012 and 2011, respectively. In September 2011, the Partnership purchased a 0.1% interest in MEP from ETP for $1 million in cash. The Partnership’s Gathering and Processing segment, in the ordinary course of business, sells natural gas to subsidiaries of ETE and records the revenue in gas sales. The Partnership’s NGL Services segment, in the ordinary course of business, sells NGLs to subsidiaries of ETE and records the revenue in NGL sales. The Partnership’s Contract Services segment provides contract compression services to ETP and records revenue in gathering, transportation and other fees on the statement of operations. The Partnership’s Contract Services segment sold compression equipment to a subsidiary of ETP for $1 million and $8 million for the years ended December 31, 2012 and 2011, respectively. As these transactions are between entities under common control, partners’ capital was increased, which represented a deemed contribution of the excess sales price over the carrying amounts. The Partnership’s Contract Services segment purchased compression equipment from a subsidiary of ETP for $29 million and $33 million during the years ended December 31, 2012 and 2011, respectively. Prior to April 30, 2013, Southern Union provided certain administrative services for SUGS that were either based on SUGS's pro-rata share of combined net investment, margin and certain expenses or direct costs incurred by Southern Union on the behalf of SUGS. Southern Union also charged a management and royalty fee to SUGS for certain management support services provided by Southern Union on the behalf of SUGS and for the use of certain Southern Union trademarks, trade names and service marks by SUGS. The amounts were $21 million and $1 million for the period from March 26, 2012 to December 31, 2012. These administrative services were no longer being provided subsequent to the SUGS Acquisition. Transactions with HPC. Under a Master Services Agreement with HPC, the Partnership operates and provides all employees and services for the operation and management of HPC. For the years ended December 31, 2012 and 2011 and during the periods from May 26, 2010 to December 31, 2010, from January 1, 2010 to May 25, 2010, the related party general and administrative expenses reimbursed to the Partnership were $20 million, $17 million, $10 million and $7 million, respectively, which is recorded in gathering, transportation and other fees on the statements of operations. The Partnership’s Contract Services segment provides compression services to HPC and records revenue in gathering, transportation and other fees on the statement of operations. The Partnership also receives transportation services from HPC and records the cost as cost of sales. Transactions with EPD and its subsidiaries. In January 2012, EPD sold a significant portion of its ownership in ETE’s common units, and subsequent to that transaction, owns less than 5% of ETE’s outstanding common units. As such, EPD is no longer considered a related party. During 2011, EPD owned a portion of ETE’s outstanding common units and therefore was considered a related party along with any of its subsidiaries. The Partnership, in the ordinary course of business, sells natural gas and NGLs to subsidiaries of EPD and records the revenue in gas sales and NGL sales. The Partnership also incurs NGL processing fees and transportation fees with subsidiaries of EPD and records these fees as cost of sales. |
Long-Term Debt (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 30, 2013
|
Jun. 30, 2013
|
Dec. 31, 2012
days
|
Dec. 31, 2011
|
Dec. 31, 2010
|
May 31, 2010
Senior Notes Due 2016
|
May 31, 2009
Senior Notes Due 2016
|
Jun. 30, 2013
Senior Notes Due 2016
|
Oct. 31, 2010
Senior Notes Due 2018
|
Dec. 31, 2012
Senior Notes Due 2021
|
May 31, 2011
Senior Notes Due 2021
|
Dec. 31, 2012
Senior Notes Due 2023
|
Oct. 31, 2012
Senior Notes Due 2023
|
Apr. 30, 2013
4.5% Senior Notes Due Two Thousand Twenty Three [Member]
|
Dec. 31, 2012
Minimum
|
Dec. 31, 2012
Maximum
|
Dec. 31, 2012
Federal Funds Effective Rate
|
Dec. 31, 2012
LIBOR
|
Dec. 31, 2012
Base Rate Loans
Minimum
|
Dec. 31, 2012
Base Rate Loans
Maximum
|
Dec. 31, 2012
Eurodollar Loans
Minimum
|
Dec. 31, 2012
Eurodollar Loans
Maximum
|
Dec. 31, 2010
Successor
|
Dec. 31, 2012
Successor
|
Dec. 31, 2011
Successor
|
Dec. 31, 2009
Successor
|
Dec. 31, 2012
Redemption Before July 15 2016
Senior Notes Due 2018
|
Dec. 31, 2012
Redemption Before July 15 2016
Senior Notes Due 2021
|
Dec. 31, 2012
Redemption Before October 15, 2017
Senior Notes Due 2023
|
Dec. 31, 2012
Revolving Credit Facility [Member]
|
|
Additional borrowing under line of credit facility during the year | $ 1,560 | $ 940 | $ 603 | |||||||||||||||||||||||||||
Repayments to line of credit facility | 1,700 | 893 | 738 | |||||||||||||||||||||||||||
Amount borrowed under line of credit facility | 1,200 | 1,150 | 900 | |||||||||||||||||||||||||||
Line of Credit Facility, Additional Borrowing Capacity | 300 | |||||||||||||||||||||||||||||
Basis spread on variable rate | 0.50% | 1.00% | 0.625% | 1.50% | 0.00% | 2.50% | ||||||||||||||||||||||||
Long-term debt weighted-average interest rate on revolving credit facility | 2.93% | 3.18% | ||||||||||||||||||||||||||||
Commitment fee percentage on unused capacity of line of credit facility | 0.30% | 0.45% | ||||||||||||||||||||||||||||
Participation fee | 1.625% | 2.50% | ||||||||||||||||||||||||||||
Fronting fee percentage | 0.20% | |||||||||||||||||||||||||||||
Maximum percentage of consolidated EBITDA | 5.00 | |||||||||||||||||||||||||||||
Consolidated Interest Expense Ratio | 2.50 | |||||||||||||||||||||||||||||
Secured Debt to Consolidated EBITDA Ratio | 3.25 | |||||||||||||||||||||||||||||
Senior note, carrying amount | 1,960 | 1,350 | 250 | 600 | 500 | 700 | 600 | |||||||||||||||||||||||
Interest percent on senior notes | 9.375% | 6.875% | 6.50% | 5.50% | ||||||||||||||||||||||||||
Proceeds from Issuance of Private Placement | 236 | |||||||||||||||||||||||||||||
Repayments of Long-term Debt | 163 | 358 | 88 | 0 | ||||||||||||||||||||||||||
Repayments of Senior Debt | 178 | |||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 162 | |||||||||||||||||||||||||||||
Redemption Premium | 8 | |||||||||||||||||||||||||||||
Accrued interest paid | 4 | |||||||||||||||||||||||||||||
Writeoff of unamortized loan fee | 1 | |||||||||||||||||||||||||||||
Writeoff of unamortized bond premium | (2) | |||||||||||||||||||||||||||||
Purchase of senior notes | 101.00% | 106.875% | 106.50% | 105.50% | 100.00% | 100.00% | 100.00% | |||||||||||||||||||||||
Premium Percentage Applied To Principal Due To Debt Redemption | 1.00% | 1.00% | 1.00% | |||||||||||||||||||||||||||
Capitalized debt issuance costs | 12 | 10 | 13 | |||||||||||||||||||||||||||
Senior notes redemption percentage | 35.00% | 35.00% | 35.00% | 35.00% | ||||||||||||||||||||||||||
Spread on varaiable rate utilized in determining premium due to debt redemption (basis points) | 50 | 50 | 50 | |||||||||||||||||||||||||||
Indenture Terms, Days of Rating Decline | 90 | |||||||||||||||||||||||||||||
Write-off of debt issuance costs and bond premium | (1) | (1) | 0 | 1 | ||||||||||||||||||||||||||
Interest Costs Capitalized | 7 | 1 | 1 | 1 | ||||||||||||||||||||||||||
Debt Instrument, Increase, Accrued Interest | $ 7 |
Partners' Capital and Distributions Subsequent Distributions (Details) (USD $)
|
3 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
Sep. 30, 2010
|
Jun. 30, 2010
|
Mar. 31, 2010
|
Dec. 31, 2009
|
|
Subsequent Distributions [Abstract] | |||||||||||
Dividends Payable, Date of Record | Aug. 05, 2013 | May 06, 2013 | Feb. 07, 2013 | ||||||||
Distribution date | Aug. 14, 2013 | May 13, 2013 | Feb. 14, 2013 | Nov. 14, 2012 | Aug. 14, 2012 | May 14, 2012 | Feb. 13, 2012 | Nov. 14, 2011 | Aug. 12, 2011 | May 13, 2011 | Feb. 14, 2011 |
Distributions per unit | $ 0.465 | $ 0.46 | $ 0.46 | $ 0.460 | $ 0.460 | $ 0.460 | $ 0.460 | $ 0.455 | $ 0.450 | $ 0.445 | $ 0.445 |
Long-Term Debt
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Long-Term Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-term Debt Obligations in the form of senior notes and borrowings under the credit facilities are as follows:
Long-term debt maturities as of December 31, 2012 for each of the next five years are as follows:
_______________________
In the year ended December 31, 2012, the Partnership borrowed $1.56 billion under its revolving credit facility; these borrowings were primarily to fund capital expenditures. During the same period, the Partnership repaid $1.7 billion with proceeds from an equity offering and an issuance of senior notes. In the years ended December 31, 2011 and 2010, the Partnership borrowed $940 million and $603 million, respectively; these funds were used primarily to finance capital expenditures and acquisitions. During the same periods, the Partnership repaid $893 million, and $738 million, respectively, of these borrowings with proceeds from equity offerings. Revolving Credit Facility. In May 2013, RGS entered into the Sixth Amended and Restated Credit Agreement to increase the commitment to $1.2 billion with a $300 million uncommitted incremental facility and extended the maturity date to May 21, 2018. The material differences between the Fifth and Sixth Amended and Restated Credit Agreement include:
The new credit agreement and the guarantees are senior to the Partnership's and the guarantors' secured obligations, including the Series A Preferred Units, to the extent of the value of the assets securing such obligations. As of June 30, 2013, the Partnership was in compliance with all of the financial covenants contained within the new credit agreement. The revolving credit facility and the guarantees are senior to the Partnership’s and the guarantors’ unsecured obligations, to the extent of the value of the assets securing such obligations. The outstanding balance under the revolving credit facility bears interest at LIBOR plus a margin or alternate base rate (equivalent to the U.S. prime lending rate) plus a margin, or a combination of both. The alternate base rate used to calculate interest on base rate loans will be calculated based on the greatest to occur of a base rate, a federal funds effective rate plus 0.50% and an adjusted one-month LIBOR rate plus 1.00%. The applicable margin shall range from 0.625% to 1.50% for base rate loans, 1.625% to 2.50% for Eurodollar loans. The weighted average interest rate on the total amounts outstanding under the Partnership’s revolving credit facility was 2.93% and 3.18% as of December 31, 2012 and 2011, respectively. RGS must pay (i) a commitment fee ranging from 0.30% to 0.45% per annum of the unused portion of the revolving loan commitments, (ii) a participation fee for each revolving lender participating in letters of credit ranging from 1.625% to 2.50% per annum of the average daily amount of such lender’s letter of credit exposure and (iii) a fronting fee to the issuing bank of letters of credit equal to 0.20% per annum of the average daily amount of the letter of credit exposure. These fees are included in interest expense, net in the consolidated statement of operations. The revolving credit facility contains financial covenants requiring RGS and its subsidiaries to maintain a debt to consolidated EBITDA (as defined in the credit agreement) ratio less than 5.00 for the first eight quarters (after March 2015, an increase is allowed in the permitted total leverage ratio for the first two fiscal quarters following any $50 million or greater acquisition), consolidated EBITDA to consolidated interest expense ratio greater than 2.50 and a secured debt to consolidated EBITDA ratio less than 3.25. At December 31, 2012 and 2011, RGS and its subsidiaries were in compliance with these covenants. The revolving credit facility restricts the ability of RGS to pay dividends and distributions other than reimbursements of the Partnership for expenses and payment of dividends to the Partnership to the amount of available cash (as defined) so long as no default or event of default has occurred or is continuing. The revolving credit facility also contains various covenants that limit (subject to certain exceptions), among other things, the ability of RGS to:
The Partnership treated the May 2013 amendment of the revolving credit facility as a modification of an existing revolving credit agreement and, therefore, wrote off debt issuance costs of $1 million to interest expense, net in the period from January 1, 2013 to June 30, 2013. In addition, the Partnership capitalized $7 million of loan fees which will be amortized over the remaining term. Senior Notes due 2016. In May 2009, the Partnership and Finance Corp. issued $250 million of senior notes in a private placement that mature on June 1, 2016 (”2016 Notes”). The 2016 Notes bear interest at 9.375% with interest payable semi-annually in arrears on June 1 and December 1. The Partnership received net proceeds of $236 million upon issuance. The net proceeds were used to partially repay revolving loans under the Partnership’s revolving credit facility. In May 2012, the Partnership redeemed 35%, or $88 million, of the 2016 Notes, bringing the total outstanding principal amount to $162 million. Accordingly, a redemption premium of $8 million was charged to loss on debt refinancing, net in the consolidated statement of operations and accrued interest of $4 million was paid. In addition, the partnership wrote off the unamortized loan fee of $1 million and unamortized bond premium of $2 million to a loss on debt refinancing, net in the consolidated statement of operations. In June 2013, the Partnership redeemed all of the $163 million outstanding 2016 Notes for $178 million cash, inclusive of accrued and unpaid interest of $7 million and other fees and expenses. Senior Notes due 2018. In October, 2010, the Partnership and Finance Corp. issued $600 million of senior notes that mature on December 1, 2018 (”2018 Notes”). The 2018 Notes bear interest at 6.875% paid semi-annually in arrears on June 1 and December 1, commencing June 1, 2011. The Partnership capitalized $12 million in debt issuance costs that will be amortized to interest expense, net over the term of the senior notes. The proceeds were used to redeem the senior notes due 2013 and to partially repay outstanding borrowings under the Partnership’s revolving credit facility. At any time before December 1, 2013, up to 35% of the 2018 Notes may be redeemed at a price of 106.875% plus accrued interest. Beginning December 1 of the years indicated below, the Partnership may redeem all or part of the 2018 Notes at the redemption prices, expressed as percentages of the principal amount, set forth below:
At any time prior to December 1, 2014, the Partnership may also redeem all or part of the 2018 Notes at a price equal to 100% of the principal amount redeemed plus accrued interest and the applicable premium, which equals the greater of (1) 1% of the principal amount of the note; or (2) the excess of the present value at such redemption date of (i) the redemption price of the note at December 1, 2014 plus (ii) all required interest payments due on the note through December 1, 2014, computed using a discount rate equal to the treasury rate (as defined) as of such redemption date plus 50 basis points, over the principal amount of the note. Senior Notes due 2021. In May 2011, the Partnership and Finance Corp. issued $500 million in senior notes that mature on July 15, 2021 (”2021 Notes”). The 2021 Notes bear interest at 6.5% payable semi-annually in arrears on January 15 and July 15, commencing January 15, 2012. The Partnership capitalized $10 million in debt issuance costs that will be amortized to interest expense, net over the term of the 2021 Notes. The proceeds were used to repay borrowings outstanding under the Partnership’s revolving credit facility. At any time prior to July 15, 2014, up to 35% of the 2021 Notes may be redeemed at a price of 106.5% plus accrued interest. Beginning on July 15 of the years indicated below, the Partnership may redeem all or part of the 2021 Notes at the redemption prices, expressed as percentages of the principal amount, set forth below:
At any time prior to July 15, 2016, the Partnership may also redeem all or part of the 2021 Notes at a price equal to 100% of the principal amount redeemed plus accrued interest and the applicable premium, which equals the greater of (1) 1% of the principal amount of the note; or (2) the excess of the present value at such redemption date of (i) the redemption price of the note at July 15, 2016 plus (ii) all required interest payments due on the note through July 15, 2016, computed using a discount rate equal to the treasury rate (as defined) as of such redemption date plus 50 basis points, over the principal amount of the note. Senior Notes due 2023. In October 2012, the Partnership and Finance Corp. issued $700 million in senior notes that mature on April 15, 2023 (”2023 Notes”). The 2023 Notes bear interest at 5.5% payable semi-annually in arrears on April 15 and October 15, commencing April 15, 2013. The Partnership capitalized $13 million in debt issuance costs that will be amortized to interest expense, net over the term of the 2023 Notes. The proceeds were used to repay borrowings outstanding under the Partnership’s revolving credit facility. At any time prior to October 15, 2015, up to 35% of the 2023 Notes may be redeemed at a price of 105.5% plus accrued interest. Beginning on October 15 of the years indicated below, the Partnership may redeem all or part of the 2023 Notes at the redemption prices, expressed as percentages of the principal amount, set forth below:
At any time prior to October 15, 2017, the Partnership may also redeem all or part of the 2023 Notes at a price equal to 100% of the principal amount redeemed plus accrued interest and the applicable premium, which equals the greater of (1) 1% of the principal amount of the note; or (2) the excess of the present value at such redemption date of (i) the redemption price of the note at October 15, 2017 plus (ii) all required interest payments due on the note through October 15, 2017, computed using a discount rate equal to the treasury rate (as defined) as of such redemption date plus 50 basis points, over the principal amount of the note. Private Placement of Senior Notes due 2023. In April 2013, in conjunction with the closing of the SUGS Acquisition, the Partnership and Finance Corp. issued $600 million senior notes in a private placement (the “2023 4.5% Notes”) pursuant to Section 4(2) of the Securities Act. The 2023 4.5% Notes bear interest at 4.5% payable semi-annually in arrears on May 1 and November 1, commencing November 1, 2013 and the 2023 4.5% Notes mature on November 1, 2023. At any time prior to August 1, 2023, we may redeem some or all of the 2023 4.5% Notes at a price equal to 100% of the principal amount plus a make-whole premium and accrued interest. On or after August 1, 2023, we may redeem some or all of the 2023 4.5% Notes at a price equal to 100% plus accrued interest. Upon a change of control, as defined in the indenture, followed by a ratings decline within 90 days, each holder of the 2023 4.5% Notes will be entitled to require us to purchase all or a portion of its notes at a purchase price of 101% of the principal amount plus accrued interest and liquidated damages, if any. Our ability to purchase the notes upon a change of control will be limited by the terms of our debt agreements, including our revolving credit facility. The 2023 4.5% Notes contain various covenants that limit, among other things, our ability, and the ability of certain of our subsidiaries, to:
If the 2023 4.5% Notes achieve investment grade ratings by both Moody’s and S&P and no default or event or default has occurred and is continuing, we will no longer be subject to many of the foregoing covenants. The 2023 4.5% Notes are jointly and severally guaranteed by all of our consolidated subsidiaries, other than Finance Corp. and a minor subsidiary. PEPL Holdings provided a guarantee of collection with respect to the payment of the principal amounts of the senior notes issued by us. The senior notes and the guarantees are unsecured and rank equally with all of our and the guarantors’ existing and future unsecured obligations. The senior notes and the guarantees will be senior in right of payment to any of our and the guarantor’s future obligations that are, by their terms, expressly subordinated in right of payment to the notes and the guarantees. The senior notes and the guarantees will be effectively subordinated to our and the guarantors’ secured obligations, including our revolving credit facility, to the extent of the value of the assets securing such obligations. Senior Notes Covenants. Upon a change of control, as defined in the indenture, followed by a rating decline within 90 days, each holder of the 2018 Notes, 2021 Notes, 2023 Notes, and 2023 4.5% Notes (collectively the “Senior Notes”) will be entitled to require the Partnership to purchase all or a portion of its notes at a purchase price of 101% plus accrued interest and liquidated damages, if any. The Partnership’s ability to purchase the notes upon a change of control will be limited by the terms of our debt agreements, including the Partnership’s revolving credit facility. The Senior Notes contain various covenants that limit, among other things, the Partnership’s ability, and the ability of certain of its subsidiaries, to:
If the Senior Notes achieve investment grade ratings by both Moody’s and S&P and no default or event of default has occurred and is continuing, the Partnership will no longer be subject to many of the foregoing covenants. At December 31, 2012, the Partnership was in compliance with these covenants. The Senior Notes are jointly and severally guaranteed by all of the Partnership’s current consolidated subsidiaries, other than Finance Corp. and several minor subsidiaries, and by certain of its future subsidiaries. The Senior Notes and the guarantees are unsecured and rank equally with all of the Partnership’s and the guarantors’ existing and future unsecured obligations. The Senior Notes and the guarantees will be senior in right of payment to any of the Partnership’s and the guarantors’ future obligations that are, by their terms, expressly subordinated in right of payment to the notes and the guarantees. The Senior Notes and the guarantees will be effectively subordinated to the Partnership’s and the guarantors’ secured obligations, including the Partnership’s revolving credit facility, to the extent of the value of the assets securing such obligations. Finance Corp. has no operations and will not have revenues other than as may be incidental as co-issuer of the Senior Notes. Since the Partnership has no independent operations, the guarantees are fully unconditional and joint and several of its subsidiaries, except for a minor subsidiary, the Partnership has not included condensed consolidated financial information of guarantors of the Senior Notes. |
Segment Information (Reconciliation Of Total Segment Margin To Net Income (Loss) From Continuing Operations Before Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
---|---|---|---|---|---|
Dec. 31, 2012
|
May 25, 2010
Predecessor
|
Dec. 31, 2010
Successor
|
Dec. 31, 2012
Successor
|
Dec. 31, 2011
Successor
|
|
Total segment margin | $ 147 | $ 212 | $ 613 | $ 421 | |
Operation and maintenance | (48) | (78) | (228) | (147) | |
General and administrative | (37) | (44) | (100) | (67) | |
(Loss) gain on asset sales, net | 0 | 0 | (3) | 2 | |
Depreciation and amortization | (42) | (76) | (252) | (169) | |
Income from unconsolidated affiliates | (16) | (54) | (105) | (120) | |
Interest expense, net | (35) | (48) | (122) | (103) | |
Loss on debt refinancing, net | (2) | (16) | (8) | 0 | |
Other income and deductions, net | 16 | 4 | 8 | (29) | (17) |
Income (loss) from continuing operations before income taxes | $ 5 | $ 4 | $ (34) | $ (74) |
Equity-Based Compensation (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Restricted (Non-Vested) Common Unit Activity | Restricted (non-vested) common unit activity for the year ended December 31, 2010 is as follows:
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Common Unit Options
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Common Unit Options Activity | The common unit options activity for the years ended December 31, 2012, 2011, and 2010 is as follows:
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Phantom Units
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Restricted (Non-Vested) Common Unit Activity | The following table presents phantom unit activity for the years ended December 31, 2012, 2011 and 2010:
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Series A Preferred Units (Beginning And Ending Balances Of The Series A Preferred Units) (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Sep. 02, 2009
|
|
Temporary Equity Disclosure [Abstract] | |||
Beginning balance Series A Preferred Units, shares | 4,371,586 | 4,371,586 | 4,371,586 |
Accretion to redemption, shares | 0 | 0 | |
Ending balance Series A Preferred Units, shares | 4,371,586 | 4,371,586 | 4,371,586 |
Beginning balance Series A Preferred Units | $ 71 | $ 71 | |
Accretion to redemption, value | 2 | 0 | |
Ending balance Series A Preferred Units | 73 | 71 | |
Deducting amounts from partners' capital over the remaining years | $ 80 | ||
Series A Preferred Units mandatory redemption date | Sep. 02, 2029 |
Income (Loss) Per Limited Partner Unit (Basic And Diluted Income (Loss) From Continuing Operations) (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
|||||
Net income allocated to limited partners | $ 27 | $ 57 | ||||
Diluted income from continuing operations amount | 22 | 47 | ||||
Basic income from continuing operations units | 167,492,735 | 145,490,869 | ||||
Diluted income from continuing operations units | 172,385,614 | 150,290,838 | ||||
Basic and diluted income from continuing operations per common unit | $ 0.16 | $ 0.39 | ||||
Diluted income from continuing operations per common unit | $ 0.13 | $ 0.32 | ||||
Common Unit Options
|
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Income allocated to dilutive securities | 0 | 0 | ||||
Dilutive securities, effect on basic earnings per share, other | 10,854 | 19,192 | ||||
Phantom Units
|
||||||
Income allocated to dilutive securities | 0 | [1] | 0 | [1] | ||
Dilutive securities, effect on basic earnings per share, other | 223,325 | [1] | 148,388 | [1] | ||
Series A Preferred Units
|
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Income allocated to dilutive securities | $ (5) | $ (10) | ||||
Dilutive securities, effect on basic earnings per share, other | 4,658,700 | 4,632,389 | ||||
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Derivative Instruments (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Derivative Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Derivative Assets And Liabilities Statement | The Partnership’s derivative assets and liabilities, including credit risk adjustments, for the years ended December 31, 2012 and 2011 are detailed below:
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Detail Effect Of Derivative Assets And Liabilities In Statement Of Operations | The Partnership’s statement of operations for the years ended December 31, 2012, 2011 and 2010 was impacted by derivative instruments activities as detailed below:
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Equity-Based Compensation
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Dec. 31, 2011
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Equity-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-Based Compensation | Equity-Based Compensation In December 2011, the Partnership’s unitholders approved the Regency Energy Partners LP 2011 Long-Term Incentive Plan (the “2011 Incentive Plan”), which provides for awards of options to purchase the Partnership’s common units; awards of the Partnership’s restricted units, phantom units and common units; awards of distribution equivalent rights; awards of common unit appreciation rights; and other unit-based awards to employees, directors and consultants of the Partnership and its affiliates and subsidiaries. The 2011 Incentive Plan will be administered by the Compensation Committee of the board of directors, which may, in its sole discretion, delegate its powers and duties under the 2011 Incentive Plan to the Chief Executive Officer. Up to 3,000,000 of the Partnership’s common units may be granted as awards under the 2011 Incentive Plan, with such amount subject to adjustment as provided for under the terms of the 2011 Incentive Plan. The 2011 Incentive Plan may be amended or terminated at any time by the board of directors or the Compensation Committee without the consent of any participant or unitholder, including an amendment to increase the number of common units available for awards under the plan; however, any material amendment, such as a change in the types of awards available under the plan, would require the approval of the unitholders of the Partnership. The Compensation Committee is also authorized to make adjustments in the terms and conditions of, and the criteria included in awards under the 2011 Incentive Plan in specified circumstances. The 2011 Incentive Plan is effective until December 19, 2021 or, if earlier, the time at which all available units under the 2011 Incentive Plan have been issued to participants or the time of termination of the plan by the board of directors. LTIP compensation expense of $5 million, $3 million, $2 million and $12 million is recorded in general and administrative expense in the statement of operations for the years ended December 31, 2012, December 31, 2011 and for the periods from May 26, 2010 to December 31, 2010 and from January 1, 2010 to May 25, 2010, respectively. In 2010, upon the change of control from GE EFS to ETE, all then non-vested restricted and phantom units, exclusive of the May 7, 2010 phantom unit grants described below, vested during the predecessor period and the Partnership recorded a one-time general and administrative charge of $10 million as a result of such unit vesting. Common Unit Options. The fair value of each option award is estimated on the date of grant using the Black-Scholes Option Pricing Model. Upon the exercise of the common unit options, the Partnership intends to settle these obligations with new issues of common units on a net basis. The common unit options activity for the years ended December 31, 2012, 2011, and 2010 is as follows:
The common unit options have an intrinsic value of less than $1 million related to non-vested units with a weighted average contractual term of 3.4 years. Intrinsic value is the closing market price of a unit less the option strike price, multiplied by the number of unit options outstanding as of the end of the period presented. Unit options with an exercise price greater than the end of the period closing market price are excluded. Restricted (Non-Vested) Units. The fair value of each restricted (non-vested) unit is determined using the grant date closing price of the Partnership’s common units. All outstanding restricted units vested on May 25, 2010, and the Partnership did not issue any additional restricted units during the remainder of 2010, 2011 or 2012. Restricted (non-vested) common unit activity for the year ended December 31, 2010 is as follows:
Phantom Units. All phantom units granted prior to November 2010 were in substance two grants composed of (1) service condition grants with graded vesting over three years; and (2) market condition grants with cliff vesting based upon the Partnership’s relative ranking in total unitholder return among 20 peer companies. Upon the change in control from GE EFS to ETE, all then-outstanding phantom units, exclusive of the May 7, 2010 grant described below, vested. The service condition grants vested at a rate of 100% and the market condition grants vested at a rate of 150% pursuant to the terms of the awards. Subsequent to November 2010, all phantom units granted are service condition grants that vest at a rate of 100%. In December 2012, the Partnership awarded 495,375 phantom units to senior management and certain key employees. These awards are service condition (time-based) grants that vest over the next five years on a cliff basis; by vesting 60% at the end of the third year of service and vesting the remaining 40% at the end of the fifth year of service. Also during 2012, 8,250 phantom units were awarded to senior management and key employees as service condition (time-based) grants that generally vest ratably over the next five years. Distributions on the phantom units (including non-vested units) will be paid concurrent with the Partnership’s distribution for common units. During 2011, the Partnership awarded 596,320 phantom units to senior management and certain key employees. These awards are service condition (time-based) grants that generally vest ratably over the next five years. Distributions on the phantom units (including non-vested units) will be paid concurrent with the Partnership’s distribution for common units. In November and December 2010, the Partnership awarded 574,700 phantom units to senior management and certain key employees. These awards are service condition (time-based) grants that generally vest ratably over the next five years. Distributions on the phantom units (including non-vested units) will be paid concurrent with the Partnership’s distribution for common units. On November 21, 2010, Mr. Byron R. Kelley, the Partnership’s former President and Chief Executive Officer, retired. The Partnership entered into a consulting agreement with Mr. Kelley, pursuant to which Mr. Kelley will provide consulting services to the Partnership for a term of three years and received a grant of 33,000 service condition (time-based) phantom units. Distributions on the phantom units (including non-vested units) will be paid concurrent with the Partnership’s distribution for common units. On May 7, 2010, the Partnership awarded 247,500 phantom units to senior management and certain key employees. These phantom units include a provision that will accelerate vesting (1) upon a change in control and (2) within 12 months of a change in control, if the grantee’s employment is terminated by the Partnership without “Cause” (as defined in the Form of Grant of Phantom Units) or the grantee resigns for “Good Reason” (as defined in the Form of Grant of Phantom Units). Distributions related to these unvested phantom units will be accrued and paid upon vesting. The following table presents phantom unit activity for the years ended December 31, 2012, 2011 and 2010:
The Partnership expects to recognize $25 million of compensation expense related to non-vested phantom units over a period of 5 years. |
Segment Information
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Dec. 31, 2012
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | 16. Segment Information During the fourth quarter of 2012, the Partnership realigned the composition of its segments and updated the segment names to reflect the realignment. Accordingly, the Partnership has restated the items of segment information for earlier periods to reflect this new segment alignment. The Partnership has five reportable segments: Gathering and Processing, Natural Gas Transportation, NGL Services, Contract Services, and Corporate. The reportable segments are as described below: Gathering and Processing. The Partnership provides “wellhead-to-market” services to producers of natural gas, which include transporting raw natural gas from the wellhead through gathering systems, processing raw natural gas to separate NGLs from the raw natural gas and selling or delivering pipeline-quality natural gas and NGLs to various markets and pipeline systems. This segment also includes the Partnership's 33.33% membership interest in Ranch JV, which processes natural gas delivered from the NGLs-rich Bone Spring and Avalon shale formations in west Texas. The Partnership completed the SUGS Acquisition on April 30, 2013; therefore, the Gathering and Processing segment amounts have been retrospectively adjusted to reflect the SUGS Acquisition beginning March 26, 2012. Natural Gas Transportation. The Partnership owns a 49.99% general partner interest in HPC, which owns RIGS, a 450-mile intrastate pipeline that delivers natural gas from northwest Louisiana to downstream pipelines and markets, a 50% membership interest in MEP, which owns an interstate natural gas pipeline with approximately 500 miles stretching from southeast Oklahoma through northeast Texas, northern Louisiana and central Mississippi to an interconnect with the Transcontinental Gas Pipe Line system in Butler, Alabama. This segment also includes Gulf States, which owns a 10-mile interstate pipeline that extends from Harrison County, Texas to Caddo Parish, Louisiana. NGL Services. The Partnership owns a 30% membership interest in Lone Star, an entity owning a diverse set of midstream energy assets including pipelines, storage, fractionation and processing facilities located in the states of Texas, Mississippi and Louisiana. Contract Services. The Partnership owns and operates a fleet of compressors used to provide turn-key natural gas compression services for customer specific systems. The Partnership also owns and operates a fleet of equipment used to provide treating services, such as carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration and BTU management. Corporate. The Corporate segment comprises the Partnership’s corporate offices. The Partnership accounts for intersegment revenues as if the revenues were to third parties, exclusive of certain cost of capital charges. Management evaluates the performance of each segment and makes capital allocation decisions through the separate consideration of segment margin and operation and maintenance expenses. Segment margin, for the Gathering and Processing and the Natural Gas Transportation segments is defined as total revenues, including service fees, less cost of sales. In the Contract Services segment, segment margin is defined as revenues less direct costs. Management believes segment margin is an important measure because it directly relates to volume, commodity price changes, revenue generating horsepower and revenue generating gallons per minute. Operation and maintenance expenses are a separate measure used by management to evaluate performance of field operations. Direct labor, insurance, property taxes, repair and maintenance, utilities and contract services comprise the most significant portion of operation and maintenance expenses. These expenses fluctuate depending on the activities performed during a specific period. The Partnership does not deduct operation and maintenance expenses from total revenues in calculating segment margin because management separately evaluates commodity volume and price changes in segment margin. The Partnership does not record segment margin for its investments in unconsolidated affiliates (HPC, MEP, Lone Star, Ranch JV and Grey Ranch) because it records its ownership percentages of their net income as income from unconsolidated affiliates in accordance with the equity method of accounting. Results for each period, together with amounts related to each segment are shown below:
The table below provides a reconciliation of total segment margin to net income (loss) from continuing operations before income taxes:
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Concentration Risk (Tables)
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Dec. 31, 2012
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Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Revenues And Cost Of Sales By Major Customer And Supplier | The following table provides information about the extent of reliance on major customers and gas suppliers. Total revenues and cost of sales from transactions with an external customer or supplier amounting to 10% or more of revenue or cost of gas and liquids are disclosed below, together with the identity of the reporting segment.
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Partners' Capital and Distributions (Tables)
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Jun. 30, 2013
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Dec. 31, 2012
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Partners’ Capital and Distributions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Distributions Of Available Cash | Following are distributions declared by the Partnership subsequent to December 31, 2012:
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Distributions. The Partnership made the following cash distributions per unit during the years ended December 31, 2012 and 2011:
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Intangible Assets (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | Activity related to intangible assets, net consisted of the following:
|
Quarterly Financial Data (Unaudited) (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | Quarterly Financial Data (Unaudited)
|
Organization and Basis of Presentation SUGS Contribution (Tables)
|
4 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2013
|
Dec. 31, 2012
|
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Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation [Table Text Block] | The assets acquired and liabilities assumed in the SUGS Acquisition were as follows:
|
From September 1, 2010 through December 31, 2010, revenues and net income attributable to Zephyr’s operations of $14 million and $6 million, respectively are included in the Partnership’s results of operations. The total purchase price was allocated as follows:
|
Derivative Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
|
Apr. 30, 2012
|
Dec. 31, 2011
|
---|---|---|---|
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ 3 | ||
Hedging gains or losses amortized in accumulated other comprehensive loss | 0 | ||
Borrowings subject to interest rate hedges | 250 | ||
Outstanding borrowings in interest rate risk | 192 | 332 | |
Maximum
|
|||
Credit risk of derivatives | 5 | ||
Reduction in credit risk of derivatives due to netting feature | $ 1 | ||
SUGS [Member]
|
|||
Derivative, Nonmonetary Notional Amount | 4,562,500 |
Partnership's Derivative Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Fair Value Measurement, Assets | $ 5 | $ 4 |
Transfers Between Level 2 Level 3 Derivatives Amount | 0 | |
Fair Value, Measurements, Recurring
|
||
Fair Value Measurement, Assets | 5 | 4 |
Fair Value Measurement, Liabilities | 31 | 50 |
Embedded Derivatives in Series A Preferred Units | 25 | 39 |
Fair Value, Measurements, Recurring | Significant Observable Inputs (Level 2)
|
||
Fair Value Measurement, Assets | 5 | 4 |
Fair Value Measurement, Liabilities | 6 | 11 |
Embedded Derivatives in Series A Preferred Units | 0 | 0 |
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3)
|
||
Fair Value Measurement, Assets | 0 | 0 |
Fair Value Measurement, Liabilities | 25 | 39 |
Embedded Derivatives in Series A Preferred Units | 25 | 39 |
Fair Value, Measurements, Recurring | Natural Gas
|
||
Fair Value Measurement, Assets | 2 | 4 |
Fair Value Measurement, Liabilities | 5 | 0 |
Fair Value, Measurements, Recurring | Natural Gas | Significant Observable Inputs (Level 2)
|
||
Fair Value Measurement, Assets | 2 | 4 |
Fair Value Measurement, Liabilities | 5 | 0 |
Fair Value, Measurements, Recurring | Natural Gas | Unobservable Inputs (Level 3)
|
||
Fair Value Measurement, Assets | 0 | 0 |
Fair Value Measurement, Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | NGLs
|
||
Fair Value Measurement, Assets | 1 | 0 |
Fair Value Measurement, Liabilities | 1 | 9 |
Fair Value, Measurements, Recurring | NGLs | Significant Observable Inputs (Level 2)
|
||
Fair Value Measurement, Assets | 1 | 0 |
Fair Value Measurement, Liabilities | 1 | 9 |
Fair Value, Measurements, Recurring | NGLs | Unobservable Inputs (Level 3)
|
||
Fair Value Measurement, Assets | 0 | 0 |
Fair Value Measurement, Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Condensate
|
||
Fair Value Measurement, Assets | 2 | 0 |
Fair Value Measurement, Liabilities | 0 | 2 |
Fair Value, Measurements, Recurring | Condensate | Significant Observable Inputs (Level 2)
|
||
Fair Value Measurement, Assets | 2 | 0 |
Fair Value Measurement, Liabilities | 0 | 2 |
Fair Value, Measurements, Recurring | Condensate | Unobservable Inputs (Level 3)
|
||
Fair Value Measurement, Assets | 0 | 0 |
Fair Value Measurement, Liabilities | $ 0 | $ 0 |
Investment In Unconsolidated Affiliates (Changes In Partnership's Investment) (Details) (USD $)
In Millions, unless otherwise specified |
0 Months Ended | 1 Months Ended | 7 Months Ended | 12 Months Ended | 7 Months Ended | 12 Months Ended | 7 Months Ended | 12 Months Ended | 5 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
HPC
|
Apr. 30, 2010
HPC
|
Sep. 01, 2011
MEP
|
May 31, 2010
MEP
|
Dec. 31, 2012
MEP
|
Aug. 30, 2011
MEP
|
May 25, 2010
MEP
|
Dec. 31, 2012
Lone Star
|
Dec. 31, 2012
Ranch JV
|
Apr. 30, 2013
Grey Ranch JV [Member]
|
Dec. 31, 2010
Successor
|
Dec. 31, 2012
Successor
|
Dec. 31, 2011
Successor
|
Dec. 31, 2010
Successor
HPC
|
Dec. 31, 2012
Successor
HPC
|
Dec. 31, 2011
Successor
HPC
|
Dec. 31, 2010
Successor
MEP
|
Dec. 31, 2012
Successor
MEP
|
Dec. 31, 2011
Successor
MEP
|
Dec. 31, 2012
Successor
Lone Star
|
Dec. 31, 2011
Successor
Lone Star
|
Dec. 31, 2012
Successor
Ranch JV
|
Dec. 31, 2011
Successor
Ranch JV
|
Dec. 31, 2012
Successor
Grey Ranch JV [Member]
|
May 25, 2010
Predecessor
|
May 25, 2010
Predecessor
HPC
|
||||||||||||
Contributions to unconsolidated affiliates | $ 0 | $ 0 | $ 0 | $ 0 | $ 86 | $ 0 | $ 0 | [1] | $ 343 | $ 645 | [2] | $ 36 | $ 0 | $ 20 | |||||||||||||||||||||||
Purchase of additional general partner interest in unconsolidated affiliates | 1 | 0 | 1 | [1] | 0 | [2] | 0 | 75 | |||||||||||||||||||||||||||||
Distributions received from unconsolidated affiliates | 57 | 121 | 119 | 53 | 61 | 65 | 43 | 75 | 83 | [1] | 68 | 22 | [2] | 0 | 0 | 0 | 12 | 12 | |||||||||||||||||||
Return of investment received | 20 | 0 | 0 | 0 | [1] | 23 | [2] | 0 | |||||||||||||||||||||||||||||
Share of unconsolidated affiliates’ net income | 54 | 105 | 120 | 36 | 35 | 55 | 21 | 42 | 43 | [1] | 44 | 28 | [2] | (1) | 0 | (9) | 16 | 16 | |||||||||||||||||||
Amortization of excess fair value of investment (1) | $ (3) | [3] | $ (6) | [3] | $ (6) | [3] | $ 0 | $ 0 | $ 0 | [1] | $ 0 | $ 0 | [2] | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||
Addtional ownership in affiliate acquired | 6.99% | 0.10% | |||||||||||||||||||||||||||||||||||
Ownership in affiliate | 49.99% | 50.00% | 49.90% | 30.00% | 33.33% | 50.00% | |||||||||||||||||||||||||||||||
Partneship ownership interest percentage | 49.90% | ||||||||||||||||||||||||||||||||||||
|
Commitments And Contingencies Environmental Liabilties (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
|
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Environmental Exit Cost [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental Exit Costs by Cost [Table Text Block] | The table below reflects the environmental liabilities recorded in the consolidated balance sheet at December 31, 2012 and 2011 where management believes a loss is probable and reasonably estimable. The Partnership does not have any material environmental remediation matters assessed as reasonably possible that would require disclosure in the financial statements.
|
Long-Term Debt (Long-Term Debt Maturities) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2012
|
||||
Long-Term Debt Disclosure [Abstract] | |||||
2013 | $ 0 | ||||
2014 | 192 | ||||
2015 | 0 | ||||
2016 | 162 | ||||
2017 | 0 | ||||
Thereafter | 1,800 | ||||
Total | 2,154 | [1] | |||
Unamortized premium | $ 3 | ||||
|
Concentration Risk
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration Risk | Concentration Risk The following table provides information about the extent of reliance on major customers and gas suppliers. Total revenues and cost of sales from transactions with an external customer or supplier amounting to 10% or more of revenue or cost of gas and liquids are disclosed below, together with the identity of the reporting segment.
_______________________
The Partnership is a party to various commercial netting agreements that allow it and contractual counterparties to net receivable and payable obligations. These agreements are customary and the terms follow standard industry practice. In the opinion of management, these agreements reduce the overall counterparty risk exposure. |
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified |
7 Months Ended | 12 Months Ended | 5 Months Ended | 12 Months Ended | |
---|---|---|---|---|---|
Dec. 31, 2010
Successor
|
Dec. 31, 2012
Successor
|
Dec. 31, 2011
Successor
|
May 25, 2010
Predecessor
|
Dec. 31, 2012
Combined [Member]
Successor
|
|
Net income (loss) | $ (6) | $ 34 | $ 74 | $ (5) | |
Net cash flow hedge amounts reclassified to earnings | 0 | 5 | 19 | 2 | 6 |
Change in fair value of cash flow hedges | (11) | (13) | 18 | (4) | |
Total other comprehensive income (loss) | (11) | 2 | 6 | 20 | |
Comprehensive income (loss) | (17) | 36 | 80 | 15 | |
Comprehensive income (loss) attributable to noncontrolling interest | 0 | 2 | 2 | 0 | |
Comprehensive income (loss) attributable to Regency Energy Partners LP | $ (17) | $ 34 | $ 78 | $ 15 |
Consolidated Statements of Cash Flows (Parenthetical) (USD $)
In Millions, unless otherwise specified |
7 Months Ended | 12 Months Ended | 5 Months Ended | |
---|---|---|---|---|
Dec. 31, 2010
Successor
|
Dec. 31, 2012
Successor
|
Dec. 31, 2011
Successor
|
May 25, 2010
Predecessor
|
|
Cash received, due to acquisition | $ 2 | $ 0 | $ 0 | $ 0 |
Organization and Basis of Presentation
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
|
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure | Organization and Basis of Presentation Organization. The consolidated financial statements presented herein contain the results of Regency Energy Partners LP and its subsidiaries (the “Partnership”), a Delaware limited partnership. The Partnership was formed on September 8, 2005, and completed its IPO on February 3, 2006. The Partnership and its subsidiaries are engaged in the business of gathering and processing, compression, treating and transportation of natural gas and the transportation, fractionation and storage of NGLs. Regency GP LP is the Partnership’s general partner and Regency GP LLC (collectively the “General Partner”) is the managing general partner of the Partnership and the general partner of Regency GP LP. SUGS was consolidated in the Partnership beginning March 26, 2012. In May 2010, GP Seller completed the sale of all of the outstanding membership interests of the General Partner pursuant to a Purchase Agreement (the “Purchase Agreement”) among itself, ETE and ETE GP (the “ETE Acquisition”). Prior to the closing of the Purchase Agreement, GP Seller, an affiliate of GE EFS, owned all of the outstanding limited partner interests in the General Partner and all of the member interests in the general partner of the General Partner and, as a result of that position, controlled the Partnership. As a result of this transaction, the outstanding voting interests of the General Partner and control of the Partnership were transferred from GE EFS to ETE. In connection with this change in control, the Partnership’s assets and liabilities were adjusted to fair value on the closing date (May 26, 2010) by application of “push-down” accounting (the “Push-down Adjustments”). The Partnership applied the guidance in FASB ASC 820, Fair Value Measurements and Disclosures (“FASB ASC 820”), in determining the fair value of partners’ capital, which is comprised of the following items:
The Partnership then developed the fair value of its assets and liabilities, with the assistance of third-party valuation experts, using the guidance in FASB ASC 820.
Due to the Push-down Adjustments, the Partnership’s consolidated financial statements and certain footnote disclosures are presented in two distinct periods to indicate the application of two different bases of accounting between the periods presented: (1) the period prior to the acquisition date (May 26, 2010), identified as “Predecessor” and (2) the period from May 26, 2010 forward, identified as “Successor.” SUGS Acquisition. In April 2013, the Partnership and Regency Western acquired SUGS from Southern Union, a wholly owned subsidiary of Holdco, for $1.5 billion (the “SUGS Acquisition”). The Partnership financed the acquisition by issuing to Southern Union 31,372,419 of common units and 6,274,483 recently created Class F common units. The Class F common units are not entitled to participate in the Partnership’s distributions for twenty-four months post-transaction closing. The remaining $600 million, less $107 million of closing adjustments, was paid in cash. In addition, ETE has agreed to forgo IDR payments on the Partnership common units issued with this transaction for the twenty-four months post-transaction closing and to suspend the $10 million annual management fee paid by the Partnership for two years post-transaction close. The common units and Class F common units related to the SUGS Acquisition were issued in a private placement conducted in accordance with the exemption from registration requirements of the Securities Act of 1933, as amended under Section 4(2) thereof. The Class F common units will convert into common units on a one-for-one basis in May 2015. The cash portion of the SUGS Acquisition was funded from the proceeds of senior notes issued by the Partnership on April 30, 2013 in a private placement. PEPL Holdings provided a guarantee of collection with respect to the payment of the principal amounts of the senior notes issued by the Partnership. The Partnership accounted for the acquisition in a manner similar to the pooling of interest method of accounting, as it was a transaction between commonly controlled entities. Under this method of accounting, the Partnership reflected historical balance sheet data for the Partnership and SUGS instead of reflecting the fair market value of SUGS assets and liabilities. The Partnership retrospectively adjusted its financial statements to include the balances and operations of SUGS from March 26, 2012 (the date upon which common control began). The assets acquired and liabilities assumed in the SUGS Acquisition were as follows:
The following table presents the revenues and net income for the previously separate entities and combined amounts presented herein:
Basis of presentation. The consolidated financial statements of the Partnership have been prepared in accordance with GAAP and include the accounts of all controlled subsidiaries after the elimination of all intercompany accounts and transactions. Certain prior year numbers have been conformed to the current year presentation. |
Fair Value Measures Significant Quantitative Unobservable Inputs for Embedded Derivative Fair Value (Details)
|
Dec. 31, 2012
|
---|---|
Fair Value Disclosures [Abstract] | |
Fair Value, Embedded Derivatives Significant Unobservable Input, Credit Spread | 6.49% |
Fair Value, Embedded Derivatives Significant Unobservable Input, Volatility | 21.38% |
Consolidated Statements of Partners' Capital and Noncontrolling Interest (Predecessor) (USD $)
In Millions, except Share data |
Total
|
Predecessor
USD ($)
|
Predecessor
Common Units
|
Predecessor
Common Unitholders
USD ($)
|
Predecessor
General Partner Interest
USD ($)
|
Predecessor
Accumulated Other Comprehensive Income (Loss)
USD ($)
|
Predecessor
Noncontrolling Interest
USD ($)
|
---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2009 | $ 1,243 | $ 1,212 | $ 19 | $ (2) | $ 14 | ||
Balance - (in Units) at Dec. 31, 2009 | 93,188,353 | ||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding - units | 152,075 | ||||||
Issuance of common units under LTIP, net of forfeitures and tax withholding | (5) | (5) | |||||
Unit-based compensation expenses | 12 | 12 | |||||
Accrued distributions to phantom units | (1) | (1) | |||||
Acquisition of assets between entities under common control in excess of historical costs | (17) | (17) | |||||
Partner distributions | (86) | (83) | (3) | ||||
Distributions to noncontrolling interest | 1 | (1) | |||||
Net income (loss) | (5) | (6) | 1 | ||||
Distributions to Series A Preferred Units | (2) | (2) | |||||
Net cash flow hedge amounts reclassified to earnings | 2 | 2 | |||||
Net change in fair value of cash flow hedges | 19 | 19 | |||||
Balance at May. 25, 2010 | $ 1,159 | $ 1,127 | $ 0 | $ 19 | $ 13 | ||
Balance - (in Units) at May. 25, 2010 | 93,340,428 |
Fair Value Measures (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Fair Value Measures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership's Derivative Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table presents the Partnership’s derivative assets and liabilities measured at fair value on a recurring basis:
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents the material unobservable inputs used to estimate the fair value of the embedded derivatives in the Series A Preferred Units:
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Changes In Level 3 Derivatives Measured On A Recurring Basis | The following table presents the changes in Level 3 derivatives measured on a recurring basis for the years ended December 31, 2012 and 2011. There were no transfers between Level 2 and Level 3 derivatives for the years ended December 31, 2012 and 2011.
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Quarterly Financial Data (Unaudited)
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12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited)
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Organization and Basis of Presentation Revenue Breakout (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2013
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Combined Entity [Table Text Block] | The following table presents the revenues and net income for the previously separate entities and combined amounts presented herein:
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Intangible Assets (Schedule of Finite-Lived Intangible Assets by Major Class) (Details) (USD $)
In Millions, unless otherwise specified |
7 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2010
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Dec. 31, 2011
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Dec. 31, 2012
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Finite-Lived Intangible Assets | |||
Net finite-lived intangible assets, beginning of period | $ 770 | $ 712 | |
Amortization | (29) | (29) | |
Net finite-lived intangible assets, end of period | 741 | 712 | |
Finite-Lived Intangible Assets, Future Amortization | |||
Future annual amortization of finite intangible assets | 29 | ||
Customer Relations
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Finite-Lived Intangible Assets | |||
Net finite-lived intangible assets, beginning of period | 707 | 655 | |
Amortization | (26) | (26) | |
Net finite-lived intangible assets, end of period | 681 | 655 | |
Finite-Lived Intangible Assets, Future Amortization | |||
Average remaining amortization periods, years | 25 years 0 months 0 days | ||
Trade Names
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Finite-Lived Intangible Assets | |||
Net finite-lived intangible assets, beginning of period | 63 | 57 | |
Amortization | (3) | (3) | |
Net finite-lived intangible assets, end of period | $ 60 | $ 57 | |
Finite-Lived Intangible Assets, Future Amortization | |||
Average remaining amortization periods, years | 17 years 0 months 0 days |
Investment In Unconsolidated Affiliates (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Investment In Unconsolidated Affiliates [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying value of limited and general partnership interest | The carrying value of the Partnership’s investment in each of the unconsolidated affiliates as of December 31, 2012 and 2011 is as follows:
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Changes In The Partnership's Investment | The following tables summarize the changes in the Partnership’s investment activities in each of the unconsolidated affiliates for the years ended December 31, 2012, 2011 and 2010:
__________________
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Long-Term Debt Long-Term Debt (Redemption Percentages) (Details)
|
12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2016
Senior Notes Due 2018
|
Nov. 30, 2015
Senior Notes Due 2018
|
Dec. 01, 2016
Senior Notes Due 2018
|
Jul. 14, 2019
Senior Notes Due 2021
|
Jul. 14, 2018
Senior Notes Due 2021
|
Jul. 14, 2017
Senior Notes Due 2021
|
Jul. 16, 2019
Senior Notes Due 2021
|
Oct. 14, 2020
Senior Notes Due 2023
|
Oct. 14, 2019
Senior Notes Due 2023
|
Oct. 14, 2018
Senior Notes Due 2023
|
Oct. 16, 2019
Senior Notes Due 2023
|
|
Extinguishment of Debt | |||||||||||
Senior Note Redemption Price | 101.719% | 103.438% | 101.083% | 102.167% | 103.25% | 100.917% | 101.833% | 102.75% | |||
Senior Note Redemption Price | 100.00% | 100.00% | 100.00% |
Partners' Capital and Distributions (Quarterly Distributions Of Available Cash) (Details) (USD $)
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3 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
Sep. 30, 2010
|
Jun. 30, 2010
|
Mar. 31, 2010
|
Dec. 31, 2009
|
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Partners’ Capital and Distributions [Abstract] | |||||||||||
Distribution date | Aug. 14, 2013 | May 13, 2013 | Feb. 14, 2013 | Nov. 14, 2012 | Aug. 14, 2012 | May 14, 2012 | Feb. 13, 2012 | Nov. 14, 2011 | Aug. 12, 2011 | May 13, 2011 | Feb. 14, 2011 |
Cash distribution per unit | $ 0.465 | $ 0.46 | $ 0.46 | $ 0.460 | $ 0.460 | $ 0.460 | $ 0.460 | $ 0.455 | $ 0.450 | $ 0.445 | $ 0.445 |