Regency Energy Partners Reports Fourth-Quarter 2009 Results
DALLAS, March 1, 2010 – Regency Energy Partners LP (Nasdaq: RGNC), (“Regency” or the “Partnership”), announced today its financial results for the fourth quarter ended December 31, 2009.
Regency’s adjusted EBITDA increased to $51 million for the fourth quarter of 2009, compared to $49 million for the third quarter of 2009. Adjusted total segment margin increased to $92 million for the fourth quarter of 2009, compared to $90 million for the third quarter of 2009. For the fourth quarter of 2009, the Partnership recorded a net loss of $3 million, compared to a net loss of $11 million for the third quarter of 2009. The variance from the third quarter of 2009 to the fourth quarter of 2009 is primarily related to a non-cash change associated with the value of the derivatives embedded within the Convertible Redeemable Preferred Units issued in September 2009.
Due to the contribution of the Regency Intrastate Gas System (“RIGS”) to the Haynesville Joint Venture, year-over-year comparisons are less meaningful compared to quarter-over-quarter comparisons. Please refer to Regency’s Form 10-K filed with the Securities and Exchange Commission for year-over-year comparisons.
“I am pleased with Regency’s ability to achieve our goals and execute on our growth strategy in 2009. Our full-year 2009 adjusted EBITDA of $205 million was within our guidance range, we completed the Haynesville Expansion Project under budget, and we announced two expansions to our gathering assets in north Louisiana,” said Byron Kelley, chairman, president and chief executive officer of Regency. “We also made significant strides toward strengthening our balance sheet by raising more than $1.2 billion of capital in 2009 and lowering our debt/EBITDA ratio.
“Looking ahead to 2010, we anticipate volumes will ramp up on the Haynesville Expansion Project, and we expect the Logansport Phase I and II Expansions to come on-line mid-year,” he continued. “We have sufficient liquidity to complete all of our currently-planned 2010 growth projects, and our growing fee-based business and assets located within several major shale plays leave Regency well-positioned for growth.”
REVIEW OF SEGMENT PERFORMANCE
With the creation of the Haynesville Joint Venture in March 2009, the Partnership realigned the composition of its business segments and has restated all segment information. The Haynesville Joint Venture is a general partnership that owns RIGS. Initially, Regency owned 38% of the Haynesville Joint Venture. Subsequently, on September 2, 2009, Regency purchased an additional 5% partnership interest in the Haynesville Joint Venture from an affiliate of GE Capital, increasing Regency’s total partnership interest in the Haynesville Joint Venture from 38% to 43%.
Gathering and Processing - The Gathering and Processing segment includes Regency's natural gas processing and treating plants, low-pressure gathering pipelines and NGL pipeline activities. In addition, Regency reports its producer services revenue in this segment.
Adjusted segment margin for Gathering and Processing, which excludes non-cash hedging gains and losses related to the Gathering and Processing segment, was $55 million for the fourth quarter of 2009, compared to $55 million for the third quarter of 2009.
Total throughput volumes for the Gathering and Processing segment averaged 1.0 million MMbtu per day of natural gas, and processed NGLs averaged 25,000 barrels per day for the fourth quarter of 2009, compared to 1.0 million MMbtu per day of natural gas and 22,000 barrels for processed NGLs in the third quarter of 2009.
Transportation - - Following the formation of the Haynesville Joint Venture, Regency’s Transportation segment consists exclusively of its interest in the Haynesville Joint Venture. Prior periods have been restated to reflect the Partnership’s then wholly owned RIGS subsidiary as the exclusive reporting unit within this segment. After the contribution of RIGS to the Haynesville Joint Venture, Regency does not record segment margin for the Transportation segment because the income attributable to the Haynesville Joint Venture is recorded as income from an unconsolidated subsidiary.
For quarter-over-quarter comparisons of the Transportation segment, Regency is providing segment information inclusive of 100% of the Haynesville Joint Venture’s segment margin. Combined transportation segment margin decreased to $12 million for the fourth quarter of 2009, compared to $14 million for the third quarter of 2009. Total combined transportation throughput volumes averaged 640,000 MMbtu per day of natural gas for the fourth quarter of 2009, compared to 736,000 MMbtu per day of natural gas for the third quarter of 2009.
Contract Compression - The Contract Compression segment provides customers with turnkey natural gas compression services to maximize natural gas production, throughput and cash flow. Regency's integrated solutions include a comprehensive assessment of a customer's natural gas contract compression needs and the design and installation of a customized compression system.
Segment margin for Contract Compression segment was $34 million for the fourth quarter of 2009, compared to $34 million for the third quarter of 2009. Regency’s revenue generating horsepower increased to 753,328 for the fourth quarter of 2009, compared to 743,289 of revenue generating horsepower for the third quarter of 2009.
Corporate and Others – The Corporate and Others segment is primarily comprised of an interstate pipeline and the Partnership’s corporate offices. Revenue in this segment is derived from the operations of an interstate pipeline, which prior to the realignment of the business segments was reported within the Transportation segment, as well as partial reimbursements of general and administrative costs from the Haynesville Joint Venture. Segment margin in the Corporate and Others segment increased to $4 million for the fourth quarter of 2009, compared to $3 million for the third quarter of 2009.
CASH DISTRIBUTIONS
On January 26, 2010, Regency announced a cash distribution of 44.5 cents per outstanding common unit for the fourth quarter ended December 31, 2009. This distribution is equivalent to $1.78 on an annual basis and was paid on February 12, 2010, to unitholders of record at the close of business on February 5, 2010.
In the fourth quarter of 2009, Regency generated $28 million in cash available for distribution, representing coverage of 0.65 times the amount required to cover its announced distribution to common unitholders. For the full-year of 2009, Regency generated $136 million in cash available for distribution, representing coverage of 0.87 times the amount required to cover its announced distribution to common unitholders. Excluding the 12 million common units issued in the fourth quarter of 2009, Regency’s full-year 2009 coverage ratio would have been 0.90 times the amount required to cover its announced distribution to common unitholders.
“As previously disclosed, we expected that our coverage ratio would drop below 1.0 times during construction of the Haynesville Expansion Project,” said Kelley. “We anticipate a recovery to our coverage ratio as volumes ramp up on our expanded RIGS system throughout 2010.”
Regency makes distribution determinations based on its cash available for distribution and the perceived sustainability of distribution levels over an extended period. In addition to considering the cash available for distribution generated during the quarter, Regency takes into account cash reserves established with respect to prior distributions, seasonality of results, and its internal forecasts of adjusted EBITDA and cash available for distribution over an extended period. Distributions are set by the Board of Directors and are driven by the long-term sustainability of the business.
ORGANIC GROWTH
Regency’s approximately $150 million of 2009 organic growth capital expenditures included approximately $87 million for the fabrication of new compression packages for the Contract Compression segment, $49 million spent on the Gathering and Processing segment, primarily in north Louisiana and south Texas; and approximately $14 million in the Transportation segment related to Regency’s proportionate share of expenditures of the Haynesville Joint Venture.
In 2010, Regency intends to spend approximately $167 million in growth capital expenditures, including approximately $137 million of growth capital for expansions in the Gathering and Processing facilities, $14 million for additional compression for the Contract Compression segment and $8 million related to the Corporate and Others segments. We expect growth capital expenditures to be approximately $8 million in the Transportation segment, which represents Regency’s proportionate share of expenditures related to the Haynesville Joint Venture. In total, $77 million of the $167 million relates to previously approved projects related to expansions in the Haynesville Shale in the Gathering and Processing and Transportation segments.
TELECONFERENCE
Regency Energy Partners will hold a quarterly conference call to discuss fourth-quarter and full-year 2009 results on Monday, March 1, 2010, at 10 a.m. Central Time (11 a.m. Eastern Time).
The dial-in number for the call is 1-800-259-0251 in the United States, or +1-617-614-3671 outside the United States, pass code 22774864. A live webcast of the call can be accessed on the investor information page of Regency Energy Partners’ Web site at www.regencyenergy.com. The call will be available for replay for 7 days by dialing 1-888-286-8010 (from outside the U.S., +1-617-801-6888) pass code 24737169.
NON-GAAP FINANCIAL INFORMATION
This press release and the accompanying financial schedules include the non-generally accepted accounting principles ("non-GAAP") financial measures of:
| · | cash available for distribution; |
| · | adjusted segment margin; and |
| · | adjusted total segment margin. |
These financial metrics are key measures of the Partnership’s financial performance. The accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly-comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Our non-GAAP financial measures should not be considered an alternative to, or more meaningful than, net income, operating income, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as a measure of operating performance, liquidity or ability to service debt obligations.
We define EBITDA as net income (loss) plus interest expense, provision for income taxes and depreciation and amortization expense.
We define adjusted EBITDA as EBITDA plus non-cash loss (gain) from derivatives, (gain) loss on asset sales, net, loss on debt refinancing, other (income) expense, net, and the Partnership’s interest in adjusted EBITDA from unconsolidated subsidiaries less income from unconsolidated subsidiary.
Adjusted EBITDA is used as a supplemental performance measure by our management and by external users of our financial statements such as investors, commercial banks, research analysts and others, to assess:
-- financial performance of our assets without regard to
financing methods, capital structure or historical cost basis;
-- 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 methods or capital structure; and
-- the viability of acquisitions and capital expenditure projects
and the overall rates of return on alternative investment
opportunities.
Our EBITDA and adjusted EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate adjusted EBITDA in the same manner.
We define cash available for distribution as:
| · | minus interest expense, excluding capitalized interest; |
| · | minus maintenance capital expenditures; |
| · | plus non-cash unit-based compensation expense related to our Long-Term Incentive Plan (“LTIP”); and |
| · | plus cash proceeds from asset sales, if any. |
Cash available for distribution is used as a supplemental liquidity measure by our management and by external users of our financial statements such as investors, commercial banks, research analysts and others, to approximate the amount of operating surplus generated by us during a specific period and to assess our ability to make cash distributions to our unitholders and our general partner. Cash available for distribution is not the same measure as operating surplus or available cash, both of which are defined in our partnership agreement.
We define segment margin, generally, as revenues minus cost of sales. We calculate our Gathering and Processing segment margin and Corporate and Others segment margin as our revenue generated from operations minus the cost of natural gas and NGLs purchased and other cost of sales, including third-party transportation and processing fees.
Prior to our contribution of RIGS to the Haynesville Joint Venture, we calculated our Transportation segment margin as revenue generated by fee income as well as, in those instances in which we purchased and sold gas for our account, gas sales revenue minus the cost of natural gas that we purchased and transported. After our contribution of RIGS to the Haynesville Joint Venture, we do not record segment margin for the Transportation segment because we record our ownership percentage of the net income in the Haynesville Joint Venture as income from an unconsolidated subsidiary.
We calculate our Contract Compression segment margin as our revenue generated from our contract compression operations minus the direct costs, primarily compressor unit repairs, associated with that revenue.
We calculate total segment margin as the total of segment margin of our four segments, less the intersegment elimination.
We define adjusted segment margin for our Gathering and Processing segment as Gathering and Processing segment margin adjusted for non-cash gains (losses) from derivatives. We define adjusted segment margin for our Transportation segment as Transportation segment margin adjusted for non-cash gains (losses) from derivatives. Adjusted segment margin is included as a supplemental disclosure because it is a primary performance measure used by management as it represents the results of product purchases and sales, a key component of our operations.
We define adjusted total segment margin as total segment margin adjusted for non-cash gains (losses) from derivatives. Our adjusted total segment margin equals the sum of our operating segments’ adjusted segment margins or segment margins, including intersegment eliminations.
Our total segment margin and adjusted total segment margin may not be comparable to a similarly titled measure of another company because other entities may not calculate these amounts in the same manner.
For quarterly comparison purposes only we have also used the following non-GAAP financial measures related to the Haynesville Joint Venture:
| · | Combined Transportation segment margin; |
| · | Combined adjusted total segment margin; and |
We define combined Transportation segment margin as Transportation segment margin plus the Haynesville Joint Venture’s segment margin.
We define combined adjusted total segment margin as adjusted total segment margin plus HPC margin.
We define HPC margin as the Haynesville Joint Venture’s net income plus or minus operation and maintenance, general and administrative, gain or loss on asset sales, net, depreciation and amortization, and other income and deductions, net.
FORWARD LOOKING INFORMATION
Certain matters discussed in this press release include “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. Statements using words such as “anticipate,” “believe,” “intend,” “project,” “plan,” “expect,” “continue,” “estimate,” “goal,” “forecast,” “may” or similar expressions help identify forward-looking statements. Although we believe our forward-looking statements are based on reasonable assumptions and current expectations and projections about future events, we cannot give assurances that such expectations will prove to be correct. Forward-looking statements are subject to a variety of risks, uncertainties and assumptions. These risks and uncertainties include volatility in the price of oil, natural gas, and natural gas liquids, declines in the credit markets and the availability of credit for the Partnership as well as for producers connected to the Partnership’s system and its customers, the level of creditworthiness of, and performance by the Partnership’s counterparties and customers, the Partnership's ability to access capital to fund organic growth projects and acquisitions, and the Partnership’s ability to obtain debt and equity financing on satisfactory terms, the Partnership's use of derivative financial instruments to hedge commodity and interest rate risks, the amount of collateral required to be posted from time-to-time in the Partnership's transactions, changes in commodity prices, interest rates, and demand for the Partnership's services, changes in laws and regulations impacting the midstream sector of the natural gas industry, weather and other natural phenomena, industry changes including the impact of consolidations and changes in competition, the Partnership's ability to obtain required approvals for construction or modernization of the Partnership's facilities and the timing of production from such facilities, and the effect of accounting pronouncements issued periodically by accounting standard setting boards. Therefore, actual results and outcomes may differ materially from those expressed in such forward-looking information.
In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than the Partnership has described. The Partnership undertakes no obligation to update publicly or to revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Regency Energy Partners LP (Nasdaq: RGNC) is a growth-oriented, midstream energy partnership engaged in the gathering, contract compression, processing, marketing and transporting of natural gas and natural gas liquids. Regency’s general partner is majority-owned by an affiliate of GE Energy Financial Services, a unit of GE (NYSE: GE). For more information, visit the Regency Energy Partners LP Web site at www.regencyenergy.com.
CONTACT:
Investor Relations:
Shannon Ming
Vice President, Investor Relations and Corporate Finance Support
Regency Energy Partners
214-840-5477
IR@regencygas.com
Media Relations:
Elizabeth Cornelius
HCK2 Partners
972-716-0500 x26
elizabeth.cornelius@hck2.com
Consolidated Income Statements: Quarter-Over-Quarter
| Regency Energy Partners LP | |
| Consolidated Income Statements | |
| ($ in thousands) | |
| | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | December 31, 2009 | | | September 30, 2009 | | | June 30, 2009 | | | March 31, 2009 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| REVENUES | | | | | | | | | | | | |
| Gas sales | | $ | 128,636 | | | $ | 97,597 | | | $ | 106,897 | | | $ | 148,270 | |
| NGL sales | | | 88,848 | | | | 66,543 | | | | 57,676 | | | | 49,585 | |
| Gathering, transportation and other fees, including related party amounts | | | 65,640 | | | | 66,278 | | | | 69,231 | | | | 72,621 | |
| Net realized and unrealized gain from derivatives | | | 2,315 | | | | 12,292 | | | | 12,515 | | | | 14,455 | |
| Other | | | 9,809 | | | | 7,872 | | | | 7,223 | | | | 5,194 | |
| Total revenues | | | 295,248 | | | | 250,582 | | | | 253,542 | | | | 290,125 | |
| | | | | | | | | | | | | | | | | |
| OPERATING COSTS AND EXPENSES | | | | | | | | | | | | | | | | |
| Cost of sales, including related party amounts | | | 203,955 | | | | 155,586 | | | | 157,347 | | | | 182,675 | |
| Operation and maintenance | | | 30,671 | | | | 32,139 | | | | 31,974 | | | | 36,042 | |
| General and administrative | | | 14,533 | | | | 14,126 | | | | 14,127 | | | | 15,077 | |
| Loss (gain) on asset sales, net | | | 105 | | | | (109 | ) | | | 651 | | | | (133,931 | ) |
| Depreciation and amortization | | | 28,759 | | | | 27,009 | | | | 26,236 | | | | 27,889 | |
| Total operating costs and expenses | | | 278,023 | | | | 228,751 | | | | 230,335 | | | | 127,752 | |
| | | | | | | | | | | | | | | | | |
| OPERATING INCOME | | | 17,225 | | | | 21,831 | | | | 23,207 | | | | 162,373 | |
| | | | | | | | | | | | | | | | | |
| Income from unconsolidated subsidiary | | | 2,431 | | | | 3,532 | | | | 1,587 | | | | 336 | |
| Interest expense, net | | | (22,028 | ) | | | (22,173 | ) | | | (19,568 | ) | | | (14,227 | ) |
| Other income and deductions, net | | | (1,459 | ) | | | (13,929 | ) | | | 214 | | | | 42 | |
| (LOSS) INCOME BEFORE INCOME TAXES | | | (3,831 | ) | | | (10,739 | ) | | | 5,440 | | | | 148,524 | |
| Income tax (benefit) expense | | | (484 | ) | | | (196 | ) | | | (515 | ) | | | 100 | |
| NET (LOSS) INCOME | | | (3,347 | ) | | | (10,543 | ) | | | 5,955 | | | | 148,424 | |
| Net (income) loss attributable to noncontrolling interest | | | (30 | ) | | | 39 | | | | (65 | ) | | | (35 | ) |
| NET (LOSS) INCOME ATTRIBUTABLE TO REGENCY ENERGY PARTNERS LP | | $ | (3,377 | ) | | $ | (10,504 | ) | | $ | 5,890 | | | $ | 148,389 | |
Segment Financial and Operating Data: Quarter-Over-Quarter
| | | Three Months Ended | |
| | | December 31, 2009 | | | September 30, 2009 | | | June 30, 2009 | | | March 31, 2009 | |
| | | ($ in thousands) | |
| Gathering and Processing Segment | | | | | | | | | | | | |
| Financial data (1)(2): | | | | | | | | | | | | |
| Segment margin | | $ | 54,828 | | | $ | 59,501 | | | $ | 57,507 | | | $ | 58,676 | |
| Adjusted segment margin | | | 55,252 | | | | 54,847 | | | | 54,779 | | | | 55,111 | |
| Operating data: | | | | | | | | | | | | | | | | |
| Throughput (MMbtu/d) | | | 1,023,720 | | | | 981,925 | | | | 984,718 | | | | 1,038,707 | |
| NGL gross production (Bbls/d) | | | 25,395 | | | | 21,814 | | | | 22,024 | | | | 22,271 | |
| | | | | | | | | | | | | | | | | |
| (1) Segment margin and adjusted segment margin vary from previously disclosed amounts due to functional reorganization of our segments. | |
(2) June 30, 2009 Segment margin and adjusted segment margin vary from previously disclosed amounts due to reclass of related parties revenues and cost of sales between the gathering and processing segment and corporate and others segment. | |
| | | Three Months Ended | |
| | | December 31, 2009 | | | September 30, 2009 | | | June 30, 2009 | | | March 31, 2009 | |
| | | ($ in thousands) | |
| Transportation Segment | | | | | | | | | | | | |
| Financial data: | | | | | | | | | | | | |
| Segment margin | | $ | - | | | $ | - | | | $ | 160 | | | $ | 11,554 | |
| Operating data: | | | | | | | | | | | | | | | | |
| Throughput (MMbtu/d) | | | - | | | | - | | | | - | | | | 810,848 | |
| | | Three Months Ended | |
| | | December 31, 2009 | | | September 30, 2009 | | | June 30, 2009 | | | March 31, 2009 | |
| | | ($ in thousands) | |
| Combined Transportation Segment(1) | | | | | | | | | | | | |
| Financial data: | | | | | | | | | | | | |
| Segment margin | | $ | 12,157 | | | $ | 13,535 | | | $ | 12,803 | | | $ | 13,556 | |
| Operating data: | | | | | | | | | | | | | | | | |
| Throughput (MMbtu/d) | | | 640,166 | | | | 735,565 | | | | 745,178 | | | | 810,848 | |
| | | | | | | | | | | | | | | | | |
| (1) Combined Transportation segment sums 100 percent of the segment margin of the Haynesville Joint Venture and RIGS. | |
| | | Three Months Ended | |
| | | December 31, 2009 | | | September 30, 2009 | | | June 30, 2009 | | | March 31, 2009 | |
| | | ($ in thousands) | |
| Contract Compression Segment | | | | | | | | | | | | |
| Financial data: | | | | | | | | | | | | |
| Segment margin | | $ | 34,163 | | | $ | 34,085 | | | $ | 35,800 | | | $ | 36,980 | |
| Operating data: | | | | | | | | | | | | | | | | |
| Revenue generating horsepower | | | 753,328 | | | | 743,289 | | | | 767,060 | | | | 789,494 | |
| Average horsepower per revenue generating compression unit | | | 849 | | | | 836 | | | | 846 | | | | 858 | |
| | | Three Months Ended | |
| | | December 31, 2009 | | | September 30, 2009 | | | June 30, 2009 | | | March 31, 2009 | |
| | | ($ in thousands) | |
| Corporate & Others | | | | | | | | | | | | |
| Financial data: | | | | | | | | | | | | |
| Segment margin (1) | | $ | 3,913 | | | $ | 2,618 | | | $ | 3,704 | | | $ | 1,049 | |
| | | | | | | | | | | | | | | | | |
| (1) Segment margin vary from previously disclosed amounts due to functional reorganization of our segments. | | | | | |
Reconciliation of Non-GAAP Measures to GAAP Measures: Quarter-Over-Quarter
| | | Three Months Ended | |
| | | December 31, 2009 | | | September 30, 2009 | | | June 30, 2009 | | | March 31, 2009 | |
| | | ($ in thousands) | |
| Net (loss) income | | $ | (3,347 | ) | | $ | (10,543 | ) | | $ | 5,955 | | | $ | 148,424 | |
| Add (deduct): | | | | | | | | | | | | | | | | |
| Interest expense, net | | | 22,028 | | | | 22,173 | | | | 19,568 | | | | 14,227 | |
| Depreciation and amortization | | | 28,759 | | | | 27,009 | | | | 26,236 | | | | 27,889 | |
| Income tax (benefit) expense | | | (484 | ) | | | (196 | ) | | | (515 | ) | | | 100 | |
| EBITDA (1) (2) | | $ | 46,956 | | | $ | 38,443 | | | $ | 51,244 | | | $ | 190,640 | |
| Add (deduct): | | | | | | | | | | | | | | | | |
| Non-cash loss (gain) from derivatives | | | 2,124 | | | | 9,332 | | | | (2,728 | ) | | | (3,565 | ) |
| (Gain) loss on asset sales, net | | | 105 | | | | (109 | ) | | | 651 | | | | (133,931 | ) |
| Income from unconsolidated subsidiary | | | (2,431 | ) | | | (3,532 | ) | | | (1,587 | ) | | | (336 | ) |
| Partnership's ownership interest in Haynesville Joint Venture's adjusted EBITDA (3) | | | 3,621 | | | | 3,890 | | | | 3,288 | | | | 599 | |
| Other expense, net | | | 698 | | | | 963 | | | | 97 | | | | 728 | |
| Adjusted EBITDA | | $ | 51,073 | | | $ | 48,987 | | | $ | 50,965 | | | $ | 54,135 | |
| | | | | | | | | | | | | | | | | |
| (1) Earnings before interest, taxes, depreciation and amortization. | | | | | | | | | | | | | | | | |
(2) EBITDA for the three months ending June 30, 2009 and March 31, 2009 varies from previously disclosed amounts as a result of new accounting pronouncement that requires disclosing non-controlling interest in income separately on the face of the income statement. | |
| (3) 100% of Haynesville Joint Venture's Adjusted EBITDA is calculated as follows: | | | | | | | | | | | | | | | | |
| Net income | | $ | 5,655 | | | $ | 9,018 | | | $ | 4,177 | | | $ | 884 | |
| Add (deduct): | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 2,669 | | | | 733 | | | | 4,443 | | | | 669 | |
| Interest expense | | | 93 | | | | 65 | | | | - | | | | - | |
| (Gain) loss on asset sales, net | | | - | | | | (13 | ) | | | 13 | | | | - | |
| Other expense, net | | | 5 | | | | 3 | | | | 19 | | | | 23 | |
Haynesville Joint Venture's Adjusted EBITDA | | $ | 8,422 | | | $ | 9,806 | | | $ | 8,652 | | | $ | 1,576 | |
Non-GAAP Adjusted Segment Margin to GAAP Net Income: Quarter-Over-Quarter
| | | Three Months Ended | |
| | | December 31, 2009 | | | September 30, 2009 | | | June 30, 2009 | | | March 31, 2009 | |
| | | ($ in thousands) | |
| Net (loss) income | | $ | (3,347 | ) | | $ | (10,543 | ) | | $ | 5,955 | | | $ | 148,424 | |
| Add (Deduct): | | | | | | | | | | | | | | | | |
| Operation and maintenance | | | 30,671 | | | | 32,139 | | | | 31,974 | | | | 36,042 | |
| General and administrative | | | 14,533 | | | | 14,126 | | | | 14,127 | | | | 15,077 | |
| Loss (gain) on asset sales, net | | | 105 | | | | (109 | ) | | | 651 | | | | (133,931 | ) |
| Depreciation and amortization | | | 28,759 | | | | 27,009 | | | | 26,236 | | | | 27,889 | |
| Income from unconsolidated subsidiary | | | (2,431 | ) | | | (3,532 | ) | | | (1,587 | ) | | | (336 | ) |
| Interest expense, net | | | 22,028 | | | | 22,173 | | | | 19,568 | | | | 14,227 | |
| Other income and deductions, net | | | 1,459 | | | | 13,929 | | | | (214 | ) | | | (42 | ) |
| Income tax (benefit) expense | | | (484 | ) | | | (196 | ) | | | (515 | ) | | | 100 | |
| Total Segment Margin | | | 91,293 | | | | 94,996 | | | | 96,195 | | | | 107,450 | |
| Non-cash loss (gain) from derivatives | | | 424 | | | | (4,654 | ) | | | (2,728 | ) | | | (3,565 | ) |
| Adjusted Total Segment Margin | | | 91,717 | | | | 90,342 | | | | 93,467 | | | | 103,885 | |
| | | | | | | | | | | | | | | | | |
| Transportation Segment Margin (2) | | | - | | | | - | | | | 160 | | | | 11,554 | |
| | | | | | | | | | | | | | | | | |
| Contract Compression Segment Margin | | | 34,163 | | | | 34,085 | | | | 35,800 | | | | 36,980 | |
| | | | | | | | | | | | | | | | | |
| Corporate & Others Segment Margin (1) | | | 3,913 | | | | 2,618 | | | | 3,704 | | | | 1,049 | |
| | | | | | | | | | | | | | | | | |
| Inter-segment Elimination | | | (1,611 | ) | | | (1,208 | ) | | | (976 | ) | | | (809 | ) |
| | | | | | | | | | | | | | | | | |
| Adjusted Gathering and Processing Segment Margin (1) | | $ | 55,252 | | | $ | 54,847 | | | $ | 54,779 | | | $ | 55,111 | |
| | | | | | | | | | | | | | | | | |
| (1) Segment margin and adjusted segment margin for Gathering and Processing segment and Corporate & Others segment for the three months ended June 30, 2009 vary from previously disclosed amounts due to reclassification of related party revenue and cost of sales between these two segments. | |
| (2) Transportation segment margin represent Regency's 100% ownership in RIGS prior to contribution of RIGS to the Haynesville Joint Venture. Amounts recorded in the three months ended June 30, 2009 represents segment margin earned prior to the contribution of RIGS to the Haynesville Joint Venture. | |
The following table presents combined adjusted total segment margin, which adds adjusted total segment margin to the Haynesville Joint Venture’s adjusted total segment margin.
| | | Three Months Ended | |
| | | December 31, 2009 | | | September 30, 2009 | | | June 30, 2009 | | | March 31, 2009 | |
| | | ($ in thousands) | |
| Adjusted Total Segment Margin | | $ | 91,717 | | | $ | 90,342 | | | $ | 93,467 | | | $ | 103,885 | |
| | | | | | | | | | | | | | | | | |
| Adjusted Total Segment Margin for Haynesville Joint Venture (a) | | | 12,157 | | | | 13,535 | | | | 12,643 | | | | 2,002 | |
| | | | | | | | | | | | | | | | | |
| Combined Adjusted Total Segment Margin | | $ | 103,874 | | | $ | 103,877 | | | $ | 106,110 | | | $ | 105,887 | |
| | | | | | | | | | | | | | | | | |
| Combined Transportation Segment Margin (b) | | | 12,157 | | | | 13,535 | | | | 12,803 | | | | 13,556 | |
| | | | | | | | | | | | | | | | | |
| Contract Compression Segment Margin | | | 34,163 | | | | 34,085 | | | | 35,800 | | | | 36,980 | |
| | | | | | | | | | | | | | | | | |
| Corporate & Others Segment Margin | | | 3,913 | | | | 2,618 | | | | 3,704 | | | | 1,049 | |
| | | | | | | | | | | | | | | | | |
| Inter-segment Elimination | | | (1,611 | ) | | | (1,208 | ) | | | (976 | ) | | | (809 | ) |
| | | | | | | | | | | | | | | | | |
| Combined Adjusted Gathering and Processing Segment Margin | | $ | 55,252 | | | $ | 54,847 | | | $ | 54,779 | | | $ | 55,111 | |
| | | | | | | | | | | | | | | | | |
| (a) Adjusted total segment margin for Haynesville Joint Venture is calculated as follows: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income | | $ | 5,655 | | | $ | 9,018 | | | $ | 4,177 | | | $ | 884 | |
| Add (deduct): | | | | | | | | | | | | | | | | |
| Operation and maintenance | | | 1,852 | | | | 2,563 | | | | 2,845 | | | | 325 | |
| General and administrative | | | 2,011 | | | | 1,766 | | | | 1,675 | | | | 228 | |
| Depreciation and amortization | | | 2,669 | | | | 733 | | | | 4,443 | | | | 669 | |
| Interest expense | | | 93 | | | | 65 | | | | - | | | | - | |
| (Gain) loss on asset sales, net | | | - | | | | (13 | ) | | | 13 | | | | - | |
| Other income and deductions, net | | | (123 | ) | | | (597 | ) | | | (510 | ) | | | (104 | ) |
| Adjusted total segment margin | | $ | 12,157 | | | $ | 13,535 | | | $ | 12,643 | | | $ | 2,002 | |
| | | | | | | | | | | | | | | | | |
| (b) Combined transportation segment margin sums 100 percent of the segment margin of the Haynesville Joint Venture and RIGS. | | | | | | | | | |
Consolidated Income Statement: Year-Over-Year
| Regency Energy Partners LP | |
| Consolidated Income Statements | |
| ($ in thousands) | |
| | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, 2009 | | | December 31, 2008 | | | December 31, 2009 | | | December 31, 2008 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| REVENUES | | | | | | | | | | | | |
| Gas sales | | $ | 128,636 | | | $ | 203,888 | | | $ | 481,400 | | | $ | 1,126,760 | |
| NGL sales | | | 88,848 | | | | 53,918 | | | | 262,652 | | | | 409,476 | |
| Gathering, transportation and other fees, including related party amounts | | | 65,640 | | | | 80,078 | | | | 273,770 | | | | 286,507 | |
| Net realized and unrealized gain (loss) from derivatives | | | 2,315 | | | | 18,367 | | | | 41,577 | | | | (21,233 | ) |
| Other | | | 9,809 | | | | 8,438 | | | | 30,098 | | | | 62,294 | |
| Total revenues | | | 295,248 | | | | 364,689 | | | | 1,089,497 | | | | 1,863,804 | |
| | | | | | | | | | | | | | | | | |
| OPERATING COSTS AND EXPENSES | | | | | | | | | | | | | | | | |
| Cost of sales, including related party amounts | | | 203,955 | | | | 239,892 | | | | 699,563 | | | | 1,408,333 | |
| Operation and maintenance | | | 30,671 | | | | 36,580 | | | | 130,826 | | | | 131,629 | |
| General and administrative | | | 14,533 | | | | 12,539 | | | | 57,863 | | | | 51,323 | |
| Loss (gain) on asset sales, net | | | 105 | | | | 38 | | | | (133,284 | ) | | | 472 | |
| Management services termination fee | | | - | | | | - | | | | - | | | | 3,888 | |
| Transaction expense | | | - | | | | 1,084 | | | | - | | | | 1,620 | |
| Depreciation and amortization | | | 28,759 | | | | 27,928 | | | | 109,893 | | | | 102,566 | |
| Total operating costs and expenses | | | 278,023 | | | | 318,061 | | | | 864,861 | | | | 1,699,831 | |
| | | | | | | | | | | | | | | | | |
| OPERATING INCOME | | | 17,225 | | | | 46,628 | | | | 224,636 | | | | 163,973 | |
| | | | | | | | | | | | | | | | | |
| Income from unconsolidated subsidiary | | | 2,431 | | | | - | | | | 7,886 | | | | - | |
| Interest expense, net | | | (22,028 | ) | | | (14,982 | ) | | | (77,996 | ) | | | (63,243 | ) |
| Other income and deductions, net | | | (1,459 | ) | | | (118 | ) | | | (15,132 | ) | | | 332 | |
| (LOSS) INCOME BEFORE INCOME TAXES | | | (3,831 | ) | | | 31,528 | | | | 139,394 | | | | 101,062 | |
| Income tax benefit | | | (484 | ) | | | (408 | ) | | | (1,095 | ) | | | (266 | ) |
| NET (LOSS) INCOME | | | (3,347 | ) | | | 31,936 | | | | 140,489 | | | | 101,328 | |
| Net income attributable to noncontrolling interest | | | (30 | ) | | | (147 | ) | | | (91 | ) | | | (312 | ) |
| NET (LOSS) INCOME ATTRIBUTABLE TO REGENCY ENERGY PARTNERS LP | | $ | (3,377 | ) | | $ | 31,789 | | | $ | 140,398 | | | $ | 101,016 | |
Segment Financial and Operating Data: Year-Over-Year
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | ($ in thousands) | |
| Gathering and Processing Segment | | | | | | | | | | | | |
| Financial data (1): | | | | | | | | | | | | |
| Segment margin | | $ | 54,828 | | | $ | 72,769 | | | $ | 230,512 | | | $ | 264,405 | |
| Adjusted segment margin | | | 55,252 | | | | 59,079 | | | | 219,989 | | | | 249,697 | |
| Operating data: | | | | | | | | | | | | | | | | |
| Throughput (MMbtu/d) | | | 1,023,720 | | | | 1,122,468 | | | | 1,000,621 | | | | 1,025,779 | |
| NGL gross production (Bbls/d) | | | 25,395 | | | | 22,662 | | | | 24,024 | | | | 22,390 | |
| | | | | | | | | | | | | | | | | |
| (1) Segment margin and adjusted segment margin vary from previously disclosed amounts due to functional reorganization of our segments. | |
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | ($ in thousands) | |
| Transportation Segment | | | | | | | | | | | | |
| Financial data: | | | | | | | | | | | | |
| Segment margin (1) | | $ | - | | | $ | 15,984 | | | $ | 11,714 | | | $ | 66,888 | |
| Operating data: | | | | | | | | | | | | | | | | |
| Throughput (MMbtu/d) | | | - | | | | 771,655 | | | | 169,143 | | | | 770,939 | |
| | | | | | | | | | | | | | | | | |
| (1) Segment margin varies from previously disclosed amounts due to functional reorganization of our segments. | | | | | |
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | ($ in thousands) | |
| Combined Transportation Segment(1) | | | | | | | | | | | | |
| Financial data: | | | | | | | | | | | | |
| Segment margin | | $ | 12,157 | | | $ | 15,984 | | | $ | 52,051 | | | $ | 66,888 | |
| Operating data: | | | | | | | | | | | | | | | | |
| Throughput (MMbtu/d) | | | 640,166 | | | | 771,655 | | | | 738,654 | | | | 770,939 | |
| | | | | | | | | | | | | | | | | |
| (1) Combined transportation segment sums 100 percent of the segment margin of the Haynesville Joint Venture and RIGS. | | | | | |
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | ($ in thousands) | |
| Contract Compression Segment | | | | | | | | | | | | |
| Financial data: | | | | | | | | | | | | |
| Segment margin | | $ | 34,163 | | | $ | 33,351 | | | $ | 141,028 | | | $ | 125,503 | |
| Operating data: | | | | | | | | | | | | | | | | |
| Revenue generating horsepower | | | 753,328 | | | | 778,667 | | | | 753,328 | | | | 778,667 | |
| Average horsepower per revenue generating compression unit | | | 849 | | | | 856 | | | | 849 | | | | 856 | |
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | ($ in thousands) | |
| Corporate & Others | | | | | | | | | | | | |
| Financial data: | | | | | | | | | | | | |
| Segment margin (1) | | $ | 3,913 | | | $ | 435 | | | $ | 11,284 | | | $ | 3,248 | |
| | | | | | | | | | | | | | | | | |
| (1) Segment margin varies from previously disclosed amounts due to functional reorganization of our segments. | | | | | |
Reconciliation of Non-GAAP Measures to GAAP Measures: Year-Over-Year
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | ($ in thousands) | |
| Net (loss) income | | $ | (3,347 | ) | | $ | 31,936 | | | $ | 140,489 | | | $ | 101,328 | |
| Add (deduct): | | | | | | | | | | | | | | | | |
| Interest expense, net | | | 22,028 | | | | 14,982 | | | | 77,996 | | | | 63,243 | |
| Depreciation and amortization | | | 28,759 | | | | 27,928 | | | | 109,893 | | | | 102,566 | |
| Income tax (benefit) expense | | | (484 | ) | | | (408 | ) | | | (1,095 | ) | | | (266 | ) |
| EBITDA (1) (2) | | $ | 46,956 | | | $ | 74,438 | | | $ | 327,283 | | | $ | 266,871 | |
| Add (deduct): | | | | | | | | | | | | | | | | |
| Non-cash loss (gain) from derivatives | | | 2,124 | | | | (13,691 | ) | | | 5,163 | | | | (14,708 | ) |
| Loss (Gain) on asset sales, net | | | 105 | | | | 38 | | | | (133,284 | ) | | | 472 | |
| Income from unconsolidated subsidiary | | | (2,431 | ) | | | - | | | | (7,886 | ) | | | - | |
| Partnership's ownership interest in Haynesville Joint Venture's adjusted EBITDA (3) | | | 3,621 | | | | - | | | | 11,398 | | | | - | |
| Other expense (income), net | | | 698 | | | | (147 | ) | | | 2,486 | | | | 1,838 | |
| Adjusted EBITDA | | $ | 51,073 | | | $ | 60,638 | | | $ | 205,160 | | | $ | 254,473 | |
| | | | | | | | | | | | | | | | | |
| (1) Earnings before interest, taxes, depreciation and amortization. | | | | | | | | | | | | | | | | |
| (2) EBITDA varies from previously disclosed amounts as a result of new accounting pronouncement that | | | | | | | | | | | | | |
| requires disclosing non-controlling interest in income separately on the face of the income statement. | | | | | | | | | | | | | |
| (3) 100% of Haynesville Joint Venture's Adjusted EBITDA is calculated as follows: | | | | | | | | | | | | | | | | |
| Net income | | $ | 5,655 | | | $ | - | | | $ | 19,734 | | | $ | - | |
| Add (deduct): | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 2,669 | | | | - | | | | 8,514 | | | | - | |
| Interest expense | | | 93 | | | | - | | | | 158 | | | | - | |
| Other expense, net | | | 5 | | | | - | | | | 50 | | | | - | |
Haynesville Joint Venture's Adjusted EBITDA | | $ | 8,422 | | | $ | - | | | $ | 28,456 | | | $ | - | |
Non-GAAP Adjusted Segment Margin to GAAP Net Income (Loss): Year-Over-Year
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | ($ in thousands) | |
| Net (loss) income | | $ | (3,347 | ) | | $ | 31,936 | | | $ | 140,489 | | | $ | 101,328 | |
| Add (Deduct): | | | | | | | | | | | | | | | | |
| Operation and maintenance | | | 30,671 | | | | 36,580 | | | | 130,826 | | | | 131,629 | |
| General and administrative | | | 14,533 | | | | 12,539 | | | | 57,863 | | | | 51,323 | |
| (Gain) loss on asset sales, net | | | 105 | | | | 38 | | | | (133,284 | ) | | | 472 | |
| Management services termination fee | | | - | | | | - | | | | - | | | | 3,888 | |
| Transaction expenses | | | - | | | | 1,084 | | | | - | | | | 1,620 | |
| Depreciation and amortization | | | 28,759 | | | | 27,928 | | | | 109,893 | | | | 102,566 | |
| Income from unconsolidated subsidiary | | | (2,431 | ) | | | - | | | | (7,886 | ) | | | - | |
| Interest expense, net | | | 22,028 | | | | 14,982 | | | | 77,996 | | | | 63,243 | |
| Loss on debt refinancing | | | - | | | | - | | | | - | | | | - | |
| Other income and deductions, net | | | 1,459 | | | | 118 | | | | 15,132 | | | | (332 | ) |
| Income tax (benefit) expense | | | (484 | ) | | | (408 | ) | | | (1,095 | ) | | | (266 | ) |
| Total Segment Margin (1) | | | 91,293 | | | | 124,797 | | | | 389,934 | | | | 455,471 | |
| Non-cash loss (gain) from derivatives | | | 424 | | | | (13,691 | ) | | | (10,523 | ) | | | (14,708 | ) |
| Non-cash put option expiration | | | - | | | | - | | | | - | | | | - | |
| Adjusted Total Segment Margin (1) | | | 91,717 | | | | 111,106 | | | | 379,411 | | | | 440,763 | |
| | | | | | | | | | | | | | | | | |
| Transportation Segment Margin (1) (2) | | | - | | | | 15,984 | | | | 11,714 | | | | 66,888 | |
| Non-cash gain (loss) from derivatives | | | - | | | | - | | | | - | | | | - | |
| Adjusted Segment Margin for Transportation (1) (2) | | | - | | | | 15,984 | | | | 11,714 | | | | 66,888 | |
| | | | | | | | | | | | | | | | | |
| Contract Compression Segment Margin (1) | | | 34,163 | | | | 33,351 | | | | 141,028 | | | | 125,503 | |
| | | | | | | | | | | | | | | | | |
| Corporate & Others Segment Margin (1) | | | 3,913 | | | | 435 | | | | 11,284 | | | | 3,248 | |
| | | | | | | | | | | | | | | | | |
| Inter-segment Elimination | | | (1,611 | ) | | | 2,258 | | | | (4,604 | ) | | | (4,573 | ) |
| | | | | | | | | | | | | | | | | |
| Adjusted Gathering and Processing Segment Margin (1) | | $ | 55,252 | | | $ | 59,078 | | | $ | 219,989 | | | $ | 249,697 | |
| | | | | | | | | | | | | | | | | |
(1) Segment margin and adjusted segment margin vary from previously disclosed amounts due to functional reorganization of our segments as well as inter-segment eliminations. | |
| | | | | | | | | | | | | | | | | |
(2) Transportation segment margin and adjusted transportation segment margin represent Regency's 100% ownership in RIGS prior to contribution of RIGS to the Haynesville Joint Venture. | |
The following table presents combined adjusted total segment margin, which adds adjusted total segment margin to the Haynesville Joint Venture’s adjusted total segment margin.
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | ($ in thousands) | |
| Adjusted Total Segment Margin | | $ | 91,717 | | | $ | 111,106 | | | $ | 379,411 | | | $ | 440,763 | |
| | | | | | | | | | | | | | | | | |
| Adjusted Total Segment Margin for Haynesville Joint Venture (a) | | | 12,157 | | | | - | | | | 40,337 | | | | - | |
| | | | | | | | | | | | | | | | | |
| Combined Adjusted Total Segment Margin | | $ | 103,874 | | | $ | 111,106 | | | $ | 419,748 | | | $ | 440,763 | |
| | | | | | | | | | | | | | | | | |
| Combined Adjusted Transportation Segment Margin (b) | | | 12,157 | | | | 15,984 | | | | 52,051 | | | | 66,888 | |
| | | | | | | | | | | | | | | | | |
| Contract Compression Segment Margin | | | 34,163 | | | | 33,351 | | | | 141,028 | | | | 125,503 | |
| | | | | | | | | | | | | | | | | |
| Corporate & Others Segment Margin | | | 3,913 | | | | 435 | | | | 11,284 | | | | 3,248 | |
| | | | | | | | | | | | | | | | | |
| Inter-segment Elimination | | | (1,611 | ) | | | 2,258 | | | | (4,604 | ) | | | (4,573 | ) |
| | | | | | | | | | | | | | | | | |
| Combined Adjusted Gathering and Processing Segment Margin | | $ | 55,252 | | | $ | 59,078 | | | $ | 219,989 | | | $ | 249,697 | |
| | | | | | | | | | | | | | | | | |
| (a) Adjusted total segment margin for Haynesville Joint Venture is calculated as follows: | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income | | $ | 5,655 | | | $ | - | | | $ | 19,734 | | | $ | - | |
| Add (deduct): | | | | | | | | | | | | | | | | |
| Operation and maintenance | | | 1,852 | | | | - | | | | 7,585 | | | | - | |
| General and administrative | | | 2,011 | | | | - | | | | 5,680 | | | | - | |
| Depreciation and amortization | | | 2,669 | | | | - | | | | 8,514 | | | | - | |
| Interest expense | | | 93 | | | | - | | | | 158 | | | | - | |
| Other income and deductions, net | | | (123 | ) | | | - | | | | (1,334 | ) | | | - | |
| Adjusted total segment margin | | $ | 12,157 | | | $ | - | | | $ | 40,337 | | | $ | - | |
| | | | | | | | | | | | | | | | | |
| (b) Combined adjusted transportation segment margin sums 100 percent of the adjusted segment margin of the Haynesville Joint Venture and RIGS. | |
Reconciliation of “cash available for distribution” to net cash flows provided by operating activities and to net income
| | | Three Months Ended | |
| | | December 31, 2009 | |
| | | ($ in thousands) | |
| Net cash flows provided by operating activities | | $ | 38,692 | |
| Add (deduct): | | | | |
| Other assets and liabilities | | | 1,017 | |
| Other current liabilities | | | 12,354 | |
| Trade accounts payable, accrued cost of gas and liquids, and related party payables | | | (44,181 | ) |
| Other current assets | | | 4,007 | |
| Trade accounts receivables, accrued revenues, and related party receivables | | | 19,549 | |
| Unit based compensation expenses | | | (1,647 | ) |
| Gain on asset sales, net | | | (105 | ) |
| Derivative valuation changes | | | (2,124 | ) |
| Non-cash income from unconsolidated subsidiary | | | (268 | ) |
| Depreciation and amortization, including debt issuance cost amortization | | | (30,641 | ) |
| Net income | | $ | (3,347 | ) |
| Add (deduct): | | | | |
| Interest expense, net | | | 22,028 | |
| Depreciation and amortization | | | 28,759 | |
| Income tax benefit | | | (484 | ) |
| EBITDA | | $ | 46,956 | |
| Add (deduct): | | | | |
| Non-cash loss from derivatives | | | 2,124 | |
| Gain on asset sales, net | | | 105 | |
| Income from unconsolidated subsidiary | | | (2,431 | ) |
| Partnership's ownership interest in Haynesville Joint Venture's adjusted EBITDA | | | 3,621 | |
| Other expense, net | | | 698 | |
| Adjusted EBITDA | | $ | 51,073 | |
| Add (deduct): | | | | |
| Interest expense, excluding capitalized interest | | | (20,760 | ) |
| Maintenance capital expenditures | | | (3,934 | ) |
| Proceeds from asset disposal | | | 496 | |
| Unit based compensation expenses | | | 1,647 | |
| Other | | | (625 | ) |
| Cash available for distribution | | $ | 27,897 | |
