exhibit992.htm

Exhibit 99.2

Selected Historical and Pro Forma Financial Data

The selected historical financial information presented below for Regency Energy Partners LP (the “Partnership”) was derived from the financial statements included in the Partnership’s Form 10-K filed on February 27, 2014. The selected pro forma financial information presented below was derived from information presented elsewhere in this Form 8-K/A, except for the pro forma financial information related to investing and financing activities cash flow data, maintenance capital expenditures, adjusted total segment margin and adjusted EBITDA, which were generally derived from the application of pro forma adjustments to the historical financial information of the Partnership, PVR Partners, L.P., the midstream business of Eagle Rock Energy Partners, L.P. and Hoover Energy Partners, LP. All tabular dollar amounts, except per unit data, are in millions.

Regency Energy Partners LP
Selected Financial Data
(in millions except unit data and per unit data)


	Successor															Predecessor
		Year Ended December 31, 2013 Pro forma (Unaudited)			Year Ended December 31, 2013			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

Statement of Operations Data:
Total revenues	$	4,698		$	2,521		$	2,000		$	1,434		$	716		$	505		$	1,043
Total operating costs and expenses		4,546			2,466			1,970			1,394			702			485			816
Operating income		152			55			30			40			14			20			227
Other income and deductions:
Income from unconsolidated affiliates		135			135			105			120			54			16			8
Interest expense, net		(336	)		(164	)		(122	)		(103	)		(48	)		(35	)		(78	)
Loss on debt refinancing, net		(21	)		(7	)		(8	)		-			(16	)		(2	)		-
Other income and deductions, net		22			7			29			17			(8	)		(4	)		(15	)
Income (loss) from continuing operations before income taxes		(48	)		26			34			74			(4	)		(5	)		142
Income tax expense (benefit)		(1	)		(1	)		-			-			1			-			(1	)
Income (loss) from continuing operations		(47	)		27			34			74			(5	)		(5	)		143
Discontinued operations:
Net (loss) income from operations of east Texas assets		-			-			-			-			(1	)		-			(3	)
Net income (loss)	$	(47	)	$	27		$	34		$	74		$	(6	)	$	(5	)	$	140
Net income attributable to noncontrolling interest		(8	)		(8	)		(2	)		(2	)		-			-			-
Net income (loss) attributable to Regency Energy Partners LP	$	(55	)	$	19		$	32		$	72		$	(6	)	$	(5	)	$	140
Amounts attributable to Series A Preferred Units		6			6			10			8			5			3			4
General partner's interest, including IDRs		20			11			9			7			3			1			5
Amount allocated to non-vested common units		-			-			-			-			-			-			1
Beneficial conversion feature for Class D common units		-			-			-			-			-			-			1
Beneficial conversion feature for Class F common units		4			4			-			-			-			-			-
Pre-acquisition loss from SUGS allocated to predecessor equity		(36	)		(36	)		(14	)		-			-			-			-
Limited partners' interest in net (loss) income	$	(49	)	$	34		$	27		$	57		$	(14	)	$	(9	)	$	129
Basic and diluted income (loss) from continuing operations per unit:
Basic (loss) income from continuing operations per common unit	$	(0.14	)	$	0.17		$	0.16		$	0.39		$	(0.09	)	$	(0.10	)	$	1.63
Diluted (loss) income from continuing operations per common unit	$	(0.14	)	$	0.17		$	0.13		$	0.32		$	(0.09	)	$	(0.10	)	$	1.63
Distributions per common unit	$	1.87		$	1.87		$	1.84		$	1.81		$	0.89		$	0.89		$	1.78
Basic and diluted loss on discontinued operations per unit	$	-		$	-		$	-		$	-		$	(0.01	)	$	-		$	(0.03	)
Basic and diluted net income (loss) per unit:
Basic net (loss) income per common unit	$	(0.11	)	$	0.17		$	0.16		$	0.39		$	(0.10	)	$	(0.10	)	$	1.61
Diluted net (loss) income per common unit	$	(0.11	)	$	0.17		$	0.13		$	0.32		$	(0.10	)	$	(0.10	)	$	1.60
Income per Class D common unit due to beneficial conversion feature	$	-		$	-		$	-		$	-		$	-		$	-		$	0.11
Income per Class F common unit due to beneficial conversion feature	$	0.72		$	0.72		$	-		$	-		$	-		$	-		$	-

	Successor										Predecessor
	December 31, 2013 Pro forma (Unaudited)		December 31, 2013		December 31, 2012		December 31, 2011		December 31, 2010		December 31, 2009

Balance Sheet Data (at period end):
Property, plant and equipment, net	$	7,688	$	4,418	$	3,686	$	1,886	$	1,660	$	1,456
Total assets		16,394		8,782		8,123		5,568		4,770		2,533
Long-term debt (long-term portion only)		6,365		3,310		2,157		1,687		1,141		1,014
Series A Preferred Units		32		32		73		71		71		52
Partners' capital and noncontrolling interest		9,125		4,916		5,340		3,531		3,294		1,243

	Successor											Predecessor
		Year Ended December 31, 2013 Pro forma (Unaudited)		Year Ended December 31, 2013		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

Cash flow data:
Net cash flows provided by (used in):
Operating activities	$	673	$	436	$	324	$	254	$	80	$	89	$	144
Investing activities		(1,848)		(1,393)		(807)		(955)		(297)		(148)		(156)
Financing activities		1,127		923		535		693		203		72		21

Other Financial Data:
Adjusted total segment margin(1)	$	1,408	$	-	$	-	$	-	$	235	$	154	$	361
Adjusted EBITDA(1)	$	994	$	608	$	517	$	420	$	218	$	108	$	211
Maintenance capital expenditures	$	90	$	48	$	58	$	22	$	7	$	8	$	20

(1) - See "Non-GAAP Financial Measures" for a reconciliation to its most directly comparable GAAP measure.

Non-GAAP Financial Measures.

We include in Exhibit 99.2 the following non-GAAP financial measures: adjusted EBITDA and adjusted total segment margin. We provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measures as calculated and presented in accordance with GAAP.

We define EBITDA as net income (loss) plus interest expense, net, income tax expense, net, and depreciation, depletion and amortization expense. We define adjusted EBITDA as EBITDA plus or minus the following:

non-cash loss (gain) from commodity and embedded derivatives;
non-cash unit-based compensation expenses;
loss (gain) on asset sales, net;
loss on debt refinancing;
impairment of long-lived assets;
other non-cash (income) expense, net
our interest in our noncontrolling interest's adjusted EBITDA less EBITDA attributable to the noncontrolling interest;and
our interest in adjusted EBITDA from unconsolidated affiliates less income from unconsolidated affiliates;

These measures are used as supplemental measures by our management and by external users of our financial statements such as investors, 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 ash sufficient to pay interest costs, support our indetedness 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 viatbility of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.

Neither EBITDA nor adjusted EBITDA should 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. EBITDA and adjusted EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA or adjusted EBITDA in the same manner. Adjusted EBITDA is the starting point in determining distributable cash flow, which is an important non-GAAP financial measure for a publicly traded partnership.

EBITDA and adjusted EBITDA do not include interest expense, income tax expense or depreciation and amortization expense. Because we have borrowed money to finance our operations, interest expense is a necessary element of our costs and our ability to generate cash available for distribution. Because we use capital assets, depreciation and amortization are also necessary elements of our costs. Therefore, any measures that exclude these elements have material limitations. To compensate for these limitations, we believe that it is important to consider both net earnings determined under GAAP, as well as EBITDA and adjusted EBITDA, to evaluate our performance. We define segment margin, generally, as revenues minus cost of sales. We calculate our Gathering and Processing segment margin and Natural Gas Transportation segment margin as revenues generated from operations less the cost of natural gas and NGLs purchased and other costs of sales, including third-party transportation and processing fees. We do not record segment margin for our investments in unconsolidated affiliates (RIGS Haynesville Partnership Co., a general partnership, and its wholly owned subsidiary, Regency Intrastate Gas LP (“HPC”), Midcontinent Express Pipeline LLC (“MEP”), Lone Star NGL LLC (“Lone Star”), Ranch Westex JV LLC (“Ranch JV”) and Grey Ranch Plant LP (“Grey Ranch”)) because we record our ownership percentages of their net income as income from unconsolidated affiliates in accordance with the equity method of accounting. We calculate our Contract Services segment margin as revenues minus direct costs, primarily compressor unit repairs, associated with those revenues. We calculate total segment margin as the sum of segment margin of our segments less intersegment eliminations. We define adjusted segment margin as segment margin adjusted for non-cash (gains) losses from commodity derivatives, the 40% of Edwards Lime Gathering, LLC margin attributable to the holder of the noncontrolling interest and our 33.33% portion of Ranch Westex JV LLC margin. Our adjusted total segment margin equals the sum of our operating segments’ adjusted segment margins or segment margins, as applicable, including intersegment eliminations.

Total segment margin and adjusted total segment margin are included as a supplemental disclosure because they are primary performance measures used by our management as they represent the result of product sales, service fee revenues and product purchases, a key component of our operations. We believe total segment margin and adjusted total segment margin are important measures because they are directly related to our volumes and commodity price changes. Operation and maintenance expense is a separate measure used by management to evaluate operating performance of field operations. Direct labor, insurance, property taxes, repair and maintenance, utilities and contract services comprise the most significant portion of our operation and maintenance expenses. These expenses are largely independent of the volumes we transport or process and fluctuate depending on the activities performed during a specific period. We do not deduct operation and maintenance expenses from total revenue in calculating total segment margin and adjusted total segment margin because we separately evaluate commodity volume and price changes in these margin amounts. As an indicator of our operating performance, total segment margin or adjusted total segment margin should not be considered an alternative to, or more meaningful than, net income as determined in accordance with GAAP. 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 measures in the same manner.

	Successor										Predecessor
		Year ended December 31, 2013 Pro forma (Unaudited)		Year Ended December 31, 2013		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

Reconciliation of "Adjusted EBITDA" to net cash flows provided by operating activities and to net income (loss)
Net cash flows provided by operating activities	$	673	$	436	$	324	$	254	$	80	$	89	$	144
Add (deduct):
Depreciation, depletion and amortization, including debt issuance cost write-off and amortization and bond premium write-off and amortization		(577)		(293)		(259)		(175)		(78)		(51)		(116)
Income from unconsolidated affiliates		135		135		105		120		54		16		8
Derivative valuation change		(31)		(6)		12		21		(33)		(12)		(5)
(Loss) gain on asset sales, net		(1)		(2)		(3)		2		-		-		133
Gain on sale of investment in unconsolidated subsidiary		14		-		-		-		-		-		-
Unit-based compensation expenses		(19)		(7)		(5)		(3)		(2)		(12)		(6)
Non-cash interest expense		(7)		-		-		-		-		-		-
Trade accounts receivable, accrued revenues and related party receivables		132		96		-		8		-		11		(11)
Other current assets and other current liabilities		56		54		(10)		(11)		13		(25)		(4)
Trade accounts payable, related party payables, accrued interest and deferred revenues		(153)		(119)		(18)		(23)		15		(9)		4
Distributions of earnings received from unconsolidated affiliates		(150)		(142)		(121)		(119)		(57)		(12)		(8)
Cash flow changes in other assets and liabilities		(119)		(125)		9		-		2		-		1
Net (loss) income	$	(47)	$	27	$	34	$	74	$	(6)	$	(5)	$	140
Add (deduct):
Interest expense, net		336		164		122		103		48		35		78
Depreciation, depletion and amortization		563		287		252		169		77		46		110
Income tax expense (benefit)		(1)		(1)		-		-		1		-		(1)
EBITDA	$	851	$	477	$	408	$	346	$	120	$	76	$	327
Add (deduct):
Partnership's interest in unconsolidated affiliates Adjusted EBITDA (1)(2)(3)(4)		250		250		222		213		102		21		11
Income from unconsolidated affiliates		(135)		(135)		(105)		(120)		(54)		(16)		(8)
Non-cash (gain) loss from commodity and embedded derivatives		3		3		(19)		(18)		31		11		5
Loss (gain) on assets sales, net		1		2		3		(2)		-		-		(133)
Gain on sale of investment in unconsolidated subsidiary		(14)		-		-		-		-		-		-
Loss on debt refinancing, net		21		7		8		-		16		2		-
Other expense, net		17		4		-		1		3		14		9
Adjusted EBITDA	$	994	$	608	$	517	$	420	$	218	$	108	$	211


(1) 100% of HPC's Adjusted EBITDA is calculated as follows:
Net income	$	72	$	72	$	70	$	109	$	72	$	35	$	20
Add:
Decpreciation and amortization		37		37		36		35		20		12		9
Interest expense		5		5		2		1		-		-		-
Impairment of property, plant, and equipment		-		-		22		-		-		-		-
Other expense, net		-		-		2		-		-		-		-
HPC's adjusted EBITDA	$	114	$	114	$	132	$	145	$	92	$	47	$	29
Ownership interest		49.99%		49.99%		49.99%		49.99%		49.99%		45.00%		38.00%
Partnership's interest in HPC's Adjusted EBITDA	$	57	$	57	$	65	$	72	$	46	$	21	$	11

(2) 100% of MEP's Adjusted EBITDA is calculated as follows:
Net income	$	80	$	80	$	83	$	85	$	43	$	-	$	-
Add:
Decpreciation and amortization		69		69		69		70		40		-		-
Interest expense, net		51		51		52		51		29		-		-
MEP's Adjusted EBITDA	$	200	$	200	$	204	$	206	$	112	$	-	$	-
Ownership interest		50%		50%		50%		50%		49%		-%		-%
Partnership's interest in MEP's Adjusted EBITDA	$	100	$	100	$	102	$	103	$	55	$	-	$	-

(3) 100% of Lone Star's Adjusted EBITDA is calculated as follows:
Net income	$	214	$	214	$	147	$	94	$	-	$	-	$	-
Add:
Decpreciation and amortization		84		84		52		32		-		-		-
Other expenses, net		2		2		-		-		-		-		-
Lone Star's Adjusted EBITDA	$	300	$	300	$	199	$	126	$	-	$	-	$	-
Ownership Interest		30%		30%		30%		30%		-%		-%		-%
Partnership's interest in Lone Star's Adjusted EBITDA	$	90	$	90	$	60	$	38	$	-	$	-	$	-

(4) 100% of Ranch JV's Adjusted EBITDA is calculated as follows:
Net income (loss)	$	4	$	4	$	(2)	$	-	$	-	$	-	$	-
Add:
Decpreciation and amortization		5		5		1		-		-		-		-
Ranch JV's Adjusted EBITDA	$	9	$	9	$	(1)	$	-	$	-	$	-	$	-
Ownership Interest		33%		33%		33%		-%		-%		-%		-%
Partnership's interest in Ranch JV's Adjusted EBITDA	$	3	$	3	$	-	$	-	$	-	$	-	$	-

	Successor										Predecessor
		Year ended December 31, 2013 Pro forma (Unaudited)		Year Ended December 31, 2013		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

Reconciliation of net income (loss) to "Adjusted total segment margin"
Net (loss) income	$	(47)	$	27	$	34	$	74	$	(6)	$	(5)	$	140
Add (deduct):
Operation and maintenance		474		296		228		147		78		48		117
General and administrative		201		88		100		67		44		37		57
Loss (gain) on assets sales, net		1		2		3		(2)		-		-		(133)
Gain on sale of investment in unconsolidated subsidiary		(14)		-		-		-		-		-		-
Depreciation, depletion and amortization		563		287		252		169		76		42		100
Income from unconsolidated affiliates		(135)		(135)		(105)		(120)		(54)		(16)		(8)
Interest expense, net		336		164		122		103		48		35		78
Loss on debt refinancing, net		21		7		8		-		16		2		-
Other income and deductions, net		(8)		(7)		(29)		(17)		8		4		15
Income tax expense (benefit)		(1)		(1)		-		-		1		-		(1)
Discontinued operations		-		-		-		-		1		-		3
Total segment margin	$	1,391	$	728	$	613	$	421	$	212	$	147	$	368
Add (deduct):
Non-cash loss (gain) from commodity derivatives		25		9		(5)		-		23		7		(7)
Segment margin related to noncontrolling interest		(13)		(13)		(6)		(4)		-		-		-
Segment margin related to ownership percentage in Ranch JV		5		5		-		-		-		-		-
Adjusted total segment margin	$	1,408	$	729	$	602	$	417	$	235	$	154	$	361