Exhibit 99.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·

EBITDA;

·	adjusted EBITDA;

·	cash available for distribution;

·	segment margin;

·	total segment margin;

·	adjusted segment margin; and

·	adjusted total segment margin.

·	minus interest expense, excluding capitalized interest;

·	minus maintenance capital expenditures;

·	plus cash proceeds from asset sales, if any; and

·	joint venture adjustments, which mainly include interest expense and maintenance capital expenditures.

 

 

 

 

 

 

Regency Energy Partners LP
Consolidated Income Statements
Unaudited
($ in thousands)
	Three Months Ended September 30,
	2011			2010
REVENUES
Gas sales, including related party amounts of $3,840 and $1,680	$	118,754		$	132,130
NGL sales, including related party amounts of $103,892 and $51,062		174,537			91,489
Gathering, transportation and other fees, including related party amounts of $6,141 and $5,680		91,596			72,184
Net realized and unrealized loss from derivatives		(5,380	)		(6,218	)
Other, including related party amounts of $2,665 and $1,111		10,760			7,303
Total revenues		390,267			296,888
OPERATING COSTS AND EXPENSES
Cost of sales, including related party amounts of $5,049 and $4,768		279,526			213,032
Operation and maintenance		37,950			34,306
General and administrative, including related party amounts of $4,225 and $2,500		17,350			18,072
(Gain) loss on asset sales, net		(131	)		200
Depreciation and amortization		41,956			32,205
Total operating costs and expenses		376,651			297,815
OPERATING INCOME (LOSS)		13,616			(927	)
Income from unconsolidated affiliates		30,946			21,754
Interest expense, net		(28,852	)		(20,379	)
Other income and deductions, net		15,050			7,524
INCOME BEFORE INCOME TAXES		30,760			7,972
Income tax (benefit) expense		(89	)		450
INCOME FROM CONTINUING OPERATIONS		30,849			7,522
DISCONTINUED OPERATIONS
Net income from operations of east Texas assets, including gain on disposal of $20 in 2010		-			324
NET INCOME	$	30,849		$	7,846
Net income attributable to noncontrolling interest		(549	)		(58	)
NET INCOME ATTRIBUTABLE TO REGENCY ENERGY PARTNERS LP	$	30,300		$	7,788

 

 

	Three Months Ended September 30,
	2011			2010
	($ in thousands)
Gathering and Processing Segment
Financial data:
Segment margin	$	64,716		$	42,723
Adjusted segment margin		64,890			56,690
Operating data:
Throughput (MMbtu/d)		1,292,766			950,583
NGL gross production (Bbls/d)		34,847			26,930

	Three Months Ended September 30,
	2011			2010
	($ in thousands)
Contract Compression Segment
Financial data:
Segment margin - Gross	$	37,957		$	38,509
Less: Inter-segment elimination		(3,341	)		(5,869	)
Segment margin, net of inter-segment elimination		34,616			32,640
Operating data:
Revenue generating horsepower		769,000			754,000

	Three Months Ended September 30,
	2011			2010 (1)
	($ in thousands)
Contract Treating Segment
Financial data:
Segment margin	$	6,642		$	2,730
Operating data:
Revenue generating GPM		3,468			3,093
(1) The Partnership acquired Contract Treating segment in September 2010.

	Three Months Ended September 30,
	2011			2010
	($ in thousands)
Corporate & Others
Financial data:
Segment margin	$	4,767		$	5,763

	Three Months Ended September 30,
	2011			2010
	($ in thousands)
Haynesville Joint Venture
Financial data:
Segment margin	$	43,583		$	49,121
Operating data:
Throughput (MMbtu/d)		1,192,203			1,519,716

	Three Months Ended September 30,
	2011			2010
	($ in thousands)
MEP Joint Venture
Financial data:
Segment margin	$	61,925		$	56,197
Operating data:
Throughput (MMbtu/d)		1,320,480			1,365,674

	Three Months Ended September 30,
	2011
	($ in thousands)
Lone Star Joint Venture
Financial data:
Segment margin	$	65,372
Operating data:
West Texas Pipeline- Throughput (Bbls/d)		133,149
NGL Fractionation Throughput (Bbls/d)		13,833
Note: The Partnership acquired 30% interest in the Lone Star Joint Venture in May 2011.

 

 

	Three Months Ended September 30,
	2011			2010
Haynesville Joint Venture	($ in thousands)
Net income	$	24,282		$	30,366
Add (Deduct):
Operation and maintenance		5,509			5,259
General and administrative		4,348			4,347
Loss on asset sales, net		-			106
Depreciation and amortization		9,100			8,902
Interest expense, net		395			154
Other income and deductions, net		(51	)		(13	)
Total Segment Margin	$	43,583		$	49,121
Note: Calculation represents 100% of Haynesville Joint Venture's Segment Margin.

 

 

	Three Months Ended September 30,
	2011			2010
MEP Joint Venture	($ in thousands)
Net income	$	21,998		$	16,351
Add:
Operation and maintenance		6,691			8,894
General and administrative		2,981			884
Depreciation and amortization		17,401			17,319
Interest expense, net		12,849			12,749
Other income and deductions, net		5			-
Total Segment Margin	$	61,925		$	56,197
Note: Calculation represents 100% of MEP Joint Venture's Segment Margin.

 

 

	Three Months Ended September 30,
	2011
Lone Star Joint Venture	($ in thousands)
Net income	$	30,952
Add:
Operation and maintenance		16,575
General and administrative		4,958
Depreciation and amortization		12,904
Tax expense		11
Other income and deductions, net		(28	)
Total Segment Margin	$	65,372
Note: Calculation represents 100% of Lone Star Joint Venture's Segment Margin. The Partnership acquired 30% interest in the joint venture in May 2011.

	Three Months Ended September 30,
	2011			2010
	($ in thousands)
Net income	$	30,849		$	7,846
Add (deduct):
Interest expense, net		28,852			20,393
Depreciation and amortization		41,956			32,429
Income tax (benefit) expense		(89	)		450
EBITDA (1)	$	101,568		$	61,118
Add (deduct):
Non-cash (gain) loss from commodity and embedded derivatives		(15,056	)		6,646
Non-cash unit-based compensation		891			303
(Gain) loss on asset sales, net		(131	)		200
Income from unconsolidated affiliates		(30,946	)		(21,754	)
Partnership's interest in Haynesville Joint Venture's adjusted EBITDA (2)		16,885			19,632
Partnership's interest in MEP Joint Venture's adjusted EBITDA (3)		26,091			23,163
Partnership's interest in Lone Star Joint Venture's adjusted EBITDA (4)		13,152			-
Other (income) expense, net		(178	)		346
Adjusted EBITDA	$	112,276		$	89,654
(1) Earnings before interest, taxes, depreciation and amortization.
(2) 100% of Haynesville Joint Venture's Adjusted EBITDA is calculated as follows:
Net income Haynesville Joint Venture	$	24,282		$	30,366
Add:
Depreciation and amortization		9,100			8,902
Interest expense, net		395			154
Other expense (income), net		5			(149	)
Haynesville Joint Venture's Adjusted EBITDA	$	33,782		$	39,273
(3) 100% of MEP Joint Venture's Adjusted EBITDA is calculated as follows:
Net income MEP Joint Venture	$	21,998		$	16,351
Add:
Depreciation and amortization		17,401			17,319
Interest expense, net		12,855			12,749
MEP Joint Venture's Adjusted EBITDA	$	52,254		$	46,419
(4) 100% of Lone Star Joint Venture's Adjusted EBITDA is calculated as follows:
Net income Lone Star Joint Venture	$	30,952		$	-
Add:
Depreciation and amortization		12,904			-
Other expenses, net		(16	)		-
Lone Star Joint Venture's Adjusted EBITDA	$	43,840		$	-

 

 

	Three Months Ended
	September 30, 2011			September 30, 2010
	($ in thousands)
Net income	$	30,849		$	7,846
Add (Deduct):
Operation and maintenance		37,950			34,306
General and administrative		17,350			18,072
(Gain) loss on asset sales, net		(131	)		200
Depreciation and amortization		41,956			32,205
Income from unconsolidated affiliates		(30,946	)		(21,754	)
Interest expense, net		28,852			20,379
Other income and deductions, net		(15,050	)		(7,524	)
Income tax (benefit) expense		(89	)		450
Discontinued operations		-			(324	)
Total Segment Margin		110,741			83,856
Non-cash loss from commodity derivatives		174			13,967
Adjusted Total Segment Margin	$	110,915		$	97,823
Gathering and Processing Segment Margin	$	64,716		$	42,723
Non-cash loss from commodity derivatives		174			13,967
Adjusted Gathering and Processing Segment Margin		64,890			56,690
Contract Compression Segment Margin		37,957			38,509
Contract Treating Segment Margin		6,642			2,730
Corporate and Others Segment Margin		4,767			5,763
Inter-segment Elimination		(3,341	)		(5,869	)
Adjusted Total Segment Margin	$	110,915		$	97,823

	Three Months Ended
	September 30, 2011
	($ in thousands)
Net cash flows provided by operating activities	$	83,302
Add (deduct):
Depreciation and amortization, including debt issuance cost amortization and bond premium amortization		(43,492	)
Amortization of excess fair value of unconsolidated affiliates		(1,462	)
Income from unconsolidated affiliates		32,408
Derivative valuation change		15,834
Gain on asset sales, net		131
Unit-based compensation expenses		(697	)
Trade accounts receivables, accrued revenues, and related party receivables		4,451
Other current assets		778
Trade accounts payable, accrued cost of gas and liquids, related party payables and deferred revenues		8,110
Other current liabilities		(27,597	)
Distributions received from unconsolidated affiliates		(40,796	)
Other assets and liabilities		(121	)
Net income	$	30,849
Add (deduct):
Interest expense, net		28,852
Depreciation and amortization		41,956
Income tax benefit		(89	)
EBITDA	$	101,568
Add (deduct):
Non-cash gain from commodity and embedded derivatives		(15,056	)
Non-cash unit-based compensation		891
Gain on asset sales, net		(131	)
Income from unconsolidated affiliates		(30,946	)
Partnership's interest in Haynesville Joint Venture's adjusted EBITDA		16,885
Partnership's interest in MEP Joint Venture's adjusted EBITDA		26,091
Partnership's interest in Lone Star Joint Venture's adjusted EBITDA		13,152
Other expense, net		(178	)
Adjusted EBITDA	$	112,276
Add (deduct):
Interest expense, excluding capitalized interest		(35,092	)
Maintenance capital expenditures		(7,002	)
Proceeds from asset disposal		6,258
Distributions to Series A Preferred Units		(1,945	)
Other adjustments, net		(1,249	)
Cash available for distribution	$	73,246