DENVER, Nov. 5 /PRNewswire-FirstCall/ -- DCP Midstream Partners, LP
(NYSE: DPM), or the Partnership, today reported financial results
for the three and nine months ended September 30, 2009. The table
below reflects 2009 and 2008 results on a consolidated basis and
2008 results as originally reported. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080805/LATU124LOGO-b) THIRD
QUARTER AND YEAR TO DATE HIGHLIGHTS Three Months Ended Nine Months
Ended September 30, September 30, ----------------------
----------------------- As As Reported Reported 2009 2008 in 2008
2009 2008 in 2008 ------ ------ -------- ------ ------ --------
(Unaudited) (Millions, except per unit amounts) Net income (loss)
attributable to partners $9.9 $154.8 $152.7 $(11.1) $1.8 $(13.1)
Net income (loss) per limited partner unit $0.21 $5.24 $5.24
$(0.63) $(0.79) $(0.79) Adjusted EBITDA* $30.2 $17.8 $13.6 $102.8
$97.2 $76.2 Adjusted net income (loss) attributable to partners*
$9.6 $0.5 $(1.6) $42.6 $46.4 $31.5 Adjusted net income (loss) per
limited partner unit* $0.20 $(0.16) $(0.16) $1.10 $0.83 $0.83
Distributable cash flow* $21.2 $14.0 $12.2 $71.8 $82.0 $67.4 *
Denotes a financial measure not presented in accordance with U.S.
generally accepted accounting principles, or GAAP. Each such
non-GAAP financial measure is defined below under "Non-GAAP
Financial Information", and each is reconciled to its most directly
comparable GAAP financial measures under "Reconciliation of
Non-GAAP Financial Measures" below. In April 2009, the Partnership
completed the acquisition of an additional 25.1 percent interest in
DCP East Texas Holdings, LLC, or East Texas, from DCP Midstream,
LLC, which results in the Partnership owning a 50.1 percent
interest in East Texas. Prior to this transaction the Partnership
accounted for its interest in East Texas under the equity method.
As a result of our owning in excess of 50 percent of East Texas,
and because the transaction was between entities under common
control, we are required to present results of operations,
including all historical periods, on a consolidated basis. In
addition, results are presented as originally reported in 2008 for
comparative purposes. Additionally, note that while the Partnership
hedges the majority of its commodity risk, the portion of East
Texas owned by DCP Midstream, LLC is unhedged. As such, the
Partnership's consolidated results depict 75 percent of East Texas
unhedged in all periods prior to the second quarter of 2009 and
49.9 percent of East Texas unhedged for all periods subsequent to
the first quarter of 2009. Adjusted EBITDA increased from $17.8
million for the three months ended September 30, 2008, to $30.2
million for the three months ended September 30, 2009, reflecting
the addition of our Michigan system, increased NGL volumes, and
reduced operating costs, partially offset by the impacts of lower
commodity prices and processing margins as well as lower gas
throughput volumes at certain of our natural gas assets. Adjusted
EBITDA in the third quarter of 2008 was significantly impacted by
hurricanes and a non-cash write down of inventory for our wholesale
propane business. Adjusted EBITDA increased from $97.2 million for
the nine months ended September 30, 2008, to $102.8 million for the
nine months ended September 30, 2009. 2009 results reflect strong
performance from our wholesale propane logistics segment and
include the impact from operational downtime at our Discovery,
Wyoming and East Texas assets in the first quarter of 2009.
DISTRIBUTION AND DISTRIBUTABLE CASH FLOW On October 27, 2009, the
Partnership announced a quarterly distribution of $0.60 per limited
partner unit, consistent with the prior quarter. Our distributable
cash flow of $21.2 million for the three months ended September 30,
2009 provided a 0.94 times distribution coverage ratio for the
quarter. Year to date distributable cash flow of $71.8 million
provided a 1.10 times distribution coverage ratio. CEO PERSPECTIVE
"With the late September start-up of commercial operations at our
Piceance Basin expansion project, we have now delivered on all the
business plan commitments we outlined last December," said Mark
Borer, president and CEO of the Partnership. "Our diversified asset
portfolio continues to mitigate the impact of the reduced commodity
price and drilling environment, with strong year to date results
enabling us to exceed the forecast we had originally provided. We
are well positioned to continue delivering on our commitments and
capture future growth opportunities." OPERATING RESULTS BY BUSINESS
SEGMENT Natural Gas Services -- Adjusted segment EBITDA increased
from $26.0 million for the three months ended September 30, 2008,
to $34.0 million for the three months ended September 30, 2009,
reflecting the addition of our Michigan system, increased NGL
volumes, and reduced operating costs, partially offset by the
impacts of lower commodity prices and processing margins as well as
lower gas throughput volumes at certain of our natural gas assets.
Adjusted segment EBITDA in the third quarter of 2008 was
significantly impacted by hurricanes. Adjusted segment EBITDA of
$93.0 million for the nine months ended September 30, 2009, as
compared to $112.2 million for the nine months ended September 30,
2008 includes the impact from operational downtime at our
Discovery, Wyoming and East Texas assets in the first quarter of
2009. Results for the first nine months of 2008 reflect a much
stronger commodity price, drilling and processing environment than
the same period in 2009. Segment operating and maintenance expense
decreased $1.4 million for the three months ended September 30,
2009 and $5.2 million for the nine months ended September 30, 2009.
The 8% and 11% decrease in these expenses for the three and nine
months ended September 30, 2009, respectively, was driven by our
cost reduction efforts, partially offset by the addition of our
Michigan system. Wholesale Propane Logistics -- Adjusted segment
EBITDA increased from a $1.2 million loss for the three months
ended September 30, 2008 to $2.1 million for the three months ended
September 30, 2009. In the third quarter of 2008 we recorded a
non-cash accounting adjustment reducing EBITDA by approximately
$3.0 million to reflect inventory carrying costs at the lower of
cost or market price. For the nine months ended September 30,
adjusted segment EBITDA increased from $3.4 million in 2008 to
$28.5 million in 2009. Year to date 2009 results reflect an
increase in unit margins, approximately $6.0 million of which is
attributable to the sale of inventory that was previously written
down. Year to date results also reflect a six percent increase in
volumes. NGL Logistics -- Adjusted segment EBITDA increased from
$1.5 million for the three months ended September 30, 2008, to $2.0
million for the three months ended September 30, 2009. Results for
the quarter include volumes associated with a new pipeline
interconnect. Adjusted segment EBITDA was $4.9 million for the nine
months ended September 30, 2009, as compared to $5.5 million for
the nine months ended September 30, 2008. Results for 2009 year to
date reflect lower throughput volumes and the impact from ethane
rejection at certain connected processing plants in the first
quarter. CORPORATE AND OTHER General and administrative expenses
for the three and nine months ended September 30, 2009 reflect our
cost reduction efforts and the addition of the Michigan system, as
compared to the same periods in 2008. Increased depreciation and
amortization expense and net interest expense for the three and
nine months ended September 30, 2009, reflect additional debt to
finance the acquisition of the Michigan system and organic project
spending. COMMODITY DERIVATIVE ACTIVITY The objective of our
commodity risk management program is to protect downside risk in
our distributable cash flow. We utilize mark-to-market accounting
treatment for our commodity derivative instruments. Mark-to-market
accounting rules require companies to record currently in earnings
the difference between their contracted future derivative
settlement prices and the forward prices of the underlying
commodities at the end of the accounting period. Revaluing our
commodity derivative instruments based on futures pricing at the
end of the period creates an asset or liability and associated
non-cash gain or loss. Realized gains or losses from cash
settlement of the derivative contracts occur monthly as our
physical commodity sales are realized or when we rebalance our
portfolio. Non-cash gains or losses associated with the
mark-to-market accounting treatment of our commodity derivative
instruments do not affect our distributable cash flow. For the
three and nine months ended September 30, 2009 derivative activity
and total revenues included a non-cash gain of approximately $0.5
million and a non-cash loss of $52.8 million, respectively, and
hedge settlements received of $2.9 million and $17.3 million,
respectively. This compares to a non-cash gain of $154.5 million
and non-cash losses of $43.8 million for the three and nine months
ended September 30, 2008, respectively, and hedge settlement
payments of $12.4 million and $38.5 million for the three and nine
months ended September 30, 2008, respectively. While our earnings
will continue to fluctuate as a result of the volatility in the
commodity markets, our commodity derivative contracts mitigate the
risk of weakening commodity prices thereby stabilizing
distributable cash flows. CAPITALIZATION Our credit facility of
$825 million is comprised of a revolver and term loan that mature
in June 2012. At September 30, 2009, we had $603 million
outstanding under our revolver. We also had $10 million outstanding
under our term loan, fully secured by restricted investments
serving as collateral. Due to the fully secured status of the term
loan, balances outstanding are netted from total long-term debt to
calculate our leverage ratio. Our leverage ratio pursuant to our
credit facility for the quarter ended September 30, 2009, was
approximately 3.7 times. Our liquidity is comprised of available
capacity under our revolver and the collateral securing our term
loan that may be used to fund organic capital expenditures or
acquisitions. Our available liquidity at September 30, 2009, was
approximately $222 million. We mitigate a substantial portion of
our interest rate risk with interest rate swaps which reduce our
exposure to market rate fluctuations by converting variable
interest rates to fixed interest rates. As of September 30, 2009,
we had $575 million of our revolver debt converted to fixed rates
through June 2012. Our weighted average cost of debt under our
revolving credit facility, including interest rate swaps, as of
September 30, 2009, was 4.4 percent. EARNINGS CALL DCP Midstream
Partners will hold a conference call to discuss third quarter
results on Friday, November 6, 2009, at 10 a.m. ET. The dial-in
number for the call is 800-860-2442 in the United States or
412-858-4600 outside the United States. A live Webcast of the call
can be accessed on the investor information page of DCP Midstream
Partners' Web site at http://www.dcppartners.com/. The call will be
available for replay until 9 a.m. ET on November 16, 2009, by
dialing 877-344-7529, in the United States or 412-317-0088 outside
the United States. The conference number is 434932. A replay and
transcript of the broadcast will also be available on the
Partnership's Web site. NON-GAAP FINANCIAL INFORMATION This press
release and the accompanying financial schedules include the
following non-GAAP financial measures: distributable cash flow,
adjusted EBITDA, adjusted segment EBITDA, adjusted net income
attributable to partners, and adjusted net income per unit. The
accompanying schedules provide reconciliations of these non-GAAP
financial measures to their most directly comparable GAAP financial
measures. Our non-GAAP financial measures should not be considered
in isolation or as an alternative to our financial measures
presented in accordance with GAAP, including net income or loss,
net cash provided by or used in operating activities or any other
measure of liquidity or financial performance presented in
accordance with GAAP as a measure of operating performance,
liquidity or ability to service debt obligations and make cash
distributions to unitholders. The non-GAAP financial measures
presented by us may not be comparable to similarly titled measures
of other companies because they may not calculate their measures in
the same manner. We define distributable cash flow as net cash
provided by or used in operating activities, less maintenance
capital expenditures, net of reimbursable projects, plus or minus
adjustments for non-cash mark-to-market of derivative instruments,
proceeds from divestiture of assets, noncontrolling interest on
depreciation, net changes in operating assets and liabilities, and
other adjustments to reconcile net cash provided by or used in
operating activities. Maintenance capital expenditures are capital
expenditures made where we add on to or improve capital assets
owned, or acquire or construct new capital assets, if such
expenditures are made to maintain, including over the long term,
our operating capacity. Non-cash mark-to-market of derivative
instruments is considered to be non-cash for the purpose of
computing distributable cash flow because settlement will not occur
until future periods, and will be impacted by future changes in
commodity prices. Distributable cash flow is used as a supplemental
liquidity measure by our management and we believe by external
users of our financial statements, such as investors, commercial
banks, research analysts and others, to assess our ability to make
cash distributions to our unitholders and our general partner. We
define adjusted EBITDA as net income or loss attributable to
partners less interest income and non-cash commodity derivative
gains, plus interest expense, income tax expense, depreciation and
amortization expense and non-cash commodity derivative losses,
adjusted for any noncontrolling interest on depreciation and
amortization expense, and income tax expense. The commodity
derivative non-cash losses and gains result from the marking to
market of certain financial derivatives used by the Partnership for
risk management purposes that we do not account for under the hedge
method of accounting. These non-cash losses or gains may or may not
be realized in future periods when the derivative contracts are
settled, due to fluctuating commodity prices. We define adjusted
segment EBITDA for each segment as segment net income or loss
attributable to partners less interest income and non-cash
commodity derivative gains for that segment, plus interest expense,
income tax expense, depreciation and amortization expense and
non-cash commodity derivative losses for that segment, adjusted for
any noncontrolling interest on depreciation and amortization
expense, and income tax expense for that segment. Our adjusted
EBITDA equals the sum of our adjusted segment EBITDAs, plus general
and administrative expense. Adjusted EBITDA and adjusted segment
EBITDA are used as supplemental liquidity and performance measures
by our management and we believe by external users of our financial
statements, such as investors, commercial banks, research analysts
and others, to assess: -- the ability of our assets to generate
cash sufficient to pay interest costs, support our indebtedness,
make cash distributions to our unitholders and general partner, and
finance maintenance expenditures; -- financial performance of our
assets without regard to financing methods, capital structure or
historical cost basis; -- our operating performance and return on
capital as compared to those of other companies in the midstream
energy industry, without regard to financing methods or capital
structure; and -- viability of acquisitions and capital expenditure
projects and the overall rates of return on alternative investment
opportunities. We define adjusted net income attributable to
partners as net income attributable to partners, plus non-cash
derivative losses, less non-cash derivative gains. Adjusted net
income per unit is then calculated from adjusted net income
attributable to partners. These non-cash derivative losses and
gains result from the marking to market of certain financial
derivatives used by the Partnership for risk management purposes
that we do not account for under the hedge method of accounting.
Adjusted net income attributable to partners and adjusted net
income per unit are provided to illustrate trends in income
excluding these non-cash derivative losses or gains, which may or
may not be realized in future periods when derivative contracts are
settled, due to fluctuating commodity prices. ABOUT DCP MIDSTREAM
PARTNERS DCP Midstream Partners, LP (NYSE:DPM) is a midstream
master limited partnership that gathers, processes, transports and
markets natural gas and natural gas liquids and is a leading
wholesale distributor of propane. DCP Midstream Partners, LP is
managed by its general partner, DCP Midstream GP, LLC, which is
wholly owned by DCP Midstream, LLC, a joint venture between Spectra
Energy and ConocoPhillips. For more information, visit the DCP
Midstream Partners, LP Web site at http://www.dcppartners.com/.
CAUTIONARY STATEMENTS This press release may contain or incorporate
by reference forward-looking statements as defined under the
federal securities laws regarding DCP Midstream Partners, LP,
including projections, estimates, forecasts, plans and objectives.
Although management believes that expectations reflected in such
forward-looking statements are reasonable, no assurance can be
given that such expectations will prove to be correct. In addition,
these statements are subject to certain risks, uncertainties and
other assumptions that are difficult to predict and may be beyond
our control. If one or more of these risks or uncertainties
materialize, or if underlying assumptions prove incorrect, the
Partnership's actual results may vary materially from what
management anticipated, estimated, projected or expected. Among the
key risk factors that may have a direct bearing on the
Partnership's results of operations and financial condition are: --
the extent of changes in commodity prices, our ability to
effectively limit a portion of the adverse impact of potential
changes in prices through derivative financial instruments, and the
potential impact of price and producers' access to capital on
natural gas drilling, demand for our services, and the volume of
NGLs and condensate extracted; -- general economic, market and
business conditions; -- the level and success of natural gas
drilling around our assets, the level of gas production volumes
around our assets and our ability to connect supplies to our
gathering and processing systems in light of competition; -- our
ability to grow through acquisitions, contributions from
affiliates, or organic growth projects, and the successful
integration and future performance of such assets; -- our ability
to access the debt and equity markets, which will depend on general
market conditions, inflation rates, interest rates and our ability
to effectively limit a portion of the adverse effects of potential
changes in interest rates by entering into derivative financial
instruments, and our ability to comply with the covenants to our
credit agreement; -- our ability to purchase propane from our
principal suppliers for our wholesale propane logistics business;
-- our ability to construct facilities in a timely fashion, which
is partially dependent on obtaining required building,
environmental and other permits issued by federal, state and
municipal governments, or agencies thereof, the availability of
specialized contractors and laborers, and the price of and demand
for supplies; -- the creditworthiness of counterparties to our
transactions; -- weather and other natural phenomena, including
their potential impact on demand for the commodities we sell and
the operation of company owned and third-party-owned
infrastructure; -- changes in laws and regulations, particularly
with regard to taxes, safety and protection of the environment,
including climate change legislation, or the increased regulation
of our industry; -- our ability to obtain insurance on commercially
reasonable terms, if at all, as well as the adequacy of the
insurance to cover our losses; -- industry changes, including the
impact of consolidations, increased delivery of liquefied natural
gas to the United States, alternative energy sources, technological
advances and changes in competition; and -- the amount of
collateral we may be required to post from time to time in our
transactions. Investors are encouraged to closely consider the
disclosures and risk factors contained in the Partnership's annual
and quarterly reports filed from time to time with the Securities
and Exchange Commission. The Partnership undertakes no obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Information contained in this press release is unaudited, and is
subject to change. DCP MIDSTREAM PARTNERS, LP FINANCIAL RESULTS AND
SUMMARY BALANCE SHEET DATA (Unaudited) Three Months Ended Nine
Months Ended September 30, September 30, --------------------------
--------------------------- As As Reported Reported 2009 2008 in
2008 2009 2008 in 2008 ------- ------- -------- ------- ---------
-------- (Millions, except per unit amounts) Sales of natural gas,
propane, NGLs and Condensate $178.1 $389.7 $271.2 $608.9 $1,397.7
$952.4 Transportation, processing and other 24.2 20.3 13.6 68.7
60.3 39.7 Gains (losses) from commodity derivative activity, net
3.4 142.1 142.0 (35.5) (82.3) (81.7) ------- ------- -------
------- --------- ------- Total operating revenues 205.7 552.1
426.8 642.1 1,375.7 910.4 Purchases of natural gas, propane and
NGLs (151.3) (350.8) (249.4) (516.5) (1,228.4) (866.9) Operating
and maintenance expense (19.0) (19.8) (10.2) (52.3) (57.1) (31.8)
Depreciation and amortization expense (16.4) (13.0) (8.8) (47.3)
(38.7) (26.3) General and administrative expense (7.9) (8.5) (6.0)
(23.6) (23.9) (16.8) Other - - - - 1.5 1.5 ------- ------- -------
------- --------- ------- Total operating costs and expenses
(194.6) (392.1) (274.4) (639.7) (1,346.6) (940.3) ------- -------
------- ------- --------- ------- Operating income (loss) 11.1
160.0 152.4 2.4 29.1 (29.9) Interest expense, net (7.1) (6.5) (6.6)
(21.1) (18.8) (19.2) Earnings from equity method investments 8.4
6.4 8.1 11.0 24.2 38.7 Income tax expense - (0.1) - (0.1) (0.7) -
Net income attributable to noncontrolling interests (2.5) (5.0)
(1.2) (3.3) (32.0) (2.7) ------- ------- ------- ------- ---------
------- Net income (loss) attributable to partners $9.9 $154.8
$152.7 $(11.1) $1.8 $(13.1) Net (income) loss attributable to
predecessor operations - (2.1) - 1.0 (14.9) - General partner
interest in net income or net loss (3.4) (4.9) (4.9) (9.3) (8.3)
(8.3) ------- ------- ------- ------- --------- ------- Net income
(loss) allocable to limited partners $6.5 $147.8 $147.8 $(19.4)
$(21.4) $(21.4) ======= ======= ======= ======= ========= =======
Net income (loss) per limited partner unit-basic and diluted $0.21
$5.24 $5.24 $(0.63) $(0.79) $(0.79) ======= ======= ======= =======
========= ======= Weighted-average limited partner units
outstanding-basic and diluted 31.7 28.2 28.2 30.6 27.1 27.1 =======
======= ======= ======= ========= ======= September 30, December
31, ------------- ------------ 2009 2008 -------- --------
(Millions) Cash and cash equivalents $12.9 $61.9 Other current
assets 125.8 153.5 Restricted investments (a) 10.0 60.2 Property,
plant and equipment, net 976.0 882.7 Other long-term assets 258.9
261.4 -------- -------- Total assets $1,383.6 $1,419.7 ========
======== Current liabilities $151.7 $163.2 Long-term debt (a) 613.0
656.5 Other long-term liabilities 54.7 37.2 Partners' equity 336.8
395.1 Noncontrolling interests 227.4 167.7 -------- -------- Total
liabilities and equity $1,383.6 $1,419.7 ======== ======== (a)
Long-term debt includes $10 million and $60 million outstanding on
the term loan portion of our credit facility as of September 30,
2009 and December 31, 2008, respectively. These amounts are fully
secured by restricted investments. DCP MIDSTREAM PARTNERS, LP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) Three
Months Ended Nine Months Ended September 30, September 30,
------------------------- ----------------------- As As Reported
Reported 2009 2008 in 2008 2009 2008 in 2008 ------ ------ --------
------ ------ -------- (Millions, except per unit amounts)
Reconciliation of Non-GAAP Financial Measures: Net income (loss)
attributable to partners $9.9 $154.8 $152.7 $(11.1) $1.8 $(13.1)
Interest expense, net 7.1 6.5 6.6 21.1 18.8 19.2 Depreciation,
amortization and income tax expense, net of noncontrolling interest
13.5 10.8 8.6 39.3 32.2 25.7 Non-cash commodity derivative
mark-to-market (0.3) (154.3) (154.3) 53.5 44.4 44.4 ----- ------
------ ------ ----- ----- Adjusted EBITDA 30.2 17.8 13.6 102.8 97.2
76.2 Interest expense, net (7.1) (6.5) (6.6) (21.1) (18.8) (19.2)
Depreciation, amortization and income tax expense, net of
noncontrolling interest (13.5) (10.8) (8.6) (39.3) (32.2) (25.7)
Other - - - 0.2 0.2 0.2 ----- ------ ------ ------ ----- -----
Adjusted net income (loss) attributable to partners 9.6 0.5 (1.6)
42.6 46.4 31.5 Maintenance capital expenditures, net of
reimbursable projects (1.0) (2.3) (1.6) (9.9) (5.3) (3.5)
Distributions from equity method investments, net of earnings (0.9)
2.6 4.3 (0.5) 6.6 11.2 Depreciation and amortization, net of
noncontrolling interest 13.5 10.7 8.6 39.3 31.8 25.7 Proceeds from
divestiture of assets - 2.5 2.5 0.3 2.5 2.5 ----- ------ ------
------ ----- ----- Distributable cash flow $21.2 $14.0 $12.2 $71.8
$82.0 $67.4 ===== ====== ====== ====== ===== ===== Adjusted net
income (loss) attributable to partners $9.6 $0.5 $(1.6) $42.6 $46.4
$31.5 Net (income) loss attributable to predecessor operations -
(2.1) - 1.0 (14.9) - General partner interest in net income or net
loss (3.4) (2.9) (2.9) (10.0) (8.9) (8.9) ----- ------ ------
------ ----- ----- Adjusted net income (loss) allocable to limited
partners $6.2 $(4.5) $(4.5) $33.6 $22.6 $22.6 ===== ====== ======
====== ===== ===== Adjusted net income (loss) per unit $0.20
$(0.16) $(0.16) $1.10 $0.83 $0.83 ===== ====== ====== ====== =====
===== Net cash provided by operating activities $43.8 $50.2 $42.0
$95.1 $121.0 $54.7 Interest expense, net 7.1 6.5 6.6 21.1 18.8 19.2
Distributions from equity method investments, net of earnings 0.9
(2.6) (4.3) 0.5 (6.6) (11.2) Net changes in operating assets and
liabilities (16.1) 125.4 125.2 (56.5) (42.7) (28.2) Net income
attributable to noncontrolling interests, net of depreciation and
income tax (5.4) (7.3) (1.4) (11.4) (39.2) (3.3) Non-cash commodity
derivative mark-to-market (0.3) (154.3) (154.3) 53.5 44.4 44.4
Other, net 0.2 (0.1) (0.2) 0.5 1.5 0.6 ----- ------ ------ ------
----- ----- Adjusted EBITDA 30.2 17.8 13.6 102.8 97.2 76.2 Interest
expense, net (7.1) (6.5) (6.6) (21.1) (18.8) (19.2) Maintenance
capital expenditures, net of reimbursable projects (1.0) (2.3)
(1.6) (9.9) (5.3) (3.5) Distributions from equity method
investments, net of earnings (0.9) 2.6 4.3 (0.5) 6.6 11.2 Other -
2.4 2.5 0.5 2.3 2.7 ----- ------ ------ ------ ----- -----
Distributable cash flow $21.2 $14.0 $12.2 $71.8 $82.0 $67.4 =====
====== ====== ====== ===== ===== DCP MIDSTREAM PARTNERS, LP SEGMENT
FINANCIAL RESULTS AND OPERATING DATA AND RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (Unaudited) Three Months Ended Nine Months Ended
September 30, September 30, -----------------------
----------------------- As As Reported Reported 2009 2008 in 2008
2009 2008 in 2008 ------ ------ -------- ------ ------ --------
(Millions, except as indicated) Natural Gas Services Segment:
Financial results: Segment net income attributable to partners
$20.8 $170.1 $165.5 $1.8 $35.6 $13.3 Non-cash commodity derivative
mark-to-market 0.3 (154.1) (154.1) 54.2 47.1 47.1 Depreciation and
amortization expense 15.8 12.3 8.1 45.1 36.7 24.3 Noncontrolling
interest on depreciation and income tax (2.9) (2.3) (0.2) (8.1)
(7.2) (0.6) ------ ------ ------ ------ ------ ------ Adjusted
segment EBITDA $34.0 $26.0 $19.3 $93.0 $112.2 $84.1 ====== ======
====== ====== ====== ====== Operating and financial data: Natural
gas throughput (MMcf/d) 1,111 816 704 1,071 926 797 NGL gross
production (Bbls/d) 30,843 24,824 18,783 27,086 29,409 22,241
Operating and maintenance expense $16.1 $17.5 $7.9 $43.8 $49.0
$23.7 Wholesale Propane Logistics Segment: Financial results:
Segment net income (loss) attributable to partners $2.4 $(1.3)
$(1.3) $28.2 $5.2 $5.2 Non-cash commodity derivative mark-to-market
(0.6) (0.2) (0.2) (0.7) (2.7) (2.7) Depreciation and amortization
expense 0.3 0.3 0.3 1.0 0.9 0.9 ------ ------ ------ ------ ------
------ Adjusted segment EBITDA $2.1 $(1.2) $(1.2) $28.5 $3.4 $3.4
====== ====== ====== ====== ====== ====== Operating and financial
data: Propane sales volume (Bbls/d) 12,435 11,445 11,445 21,146
19,934 19,934 Operating and maintenance expense $2.5 $1.9 $1.9 $7.6
$7.3 $7.3 NGL Logistics Segment: Financial results: Segment net
income attributable to partners $1.7 $1.1 $1.1 $3.8 $4.4 $4.4
Depreciation and amortization expense 0.3 0.4 0.4 1.1 1.1 1.1
------ ------ ------ ------ ------ ------ Adjusted segment EBITDA
$2.0 $1.5 $1.5 $4.9 $5.5 $5.5 ====== ====== ====== ====== ======
====== Operating and financial data: NGL pipelines throughput
(Bbls/d) 32,417 31,881 31,881 27,745 32,681 32,681 Operating and
maintenance expense $0.4 $0.4 $0.4 $0.9 $0.8 $0.8
http://www.newscom.com/cgi-bin/prnh/20080805/LATU124LOGO-b
http://photoarchive.ap.org/ DATASOURCE: DCP Midstream Partners, LP
CONTACT: Media and Investors, Karen L. Quast of DCP Midstream
Partners, LP, +1-303-633-2913, +1-303-809-9160 Web Site:
http://www.dcppartners.com/
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