HOUSTON--(BUSINESS WIRE)--Jul. 27, 2009--
Duncan Energy Partners L.P. (NYSE:DEP) today announced its financial and
operating results for the three and six months ended June 30, 2009 and
2008. The partnership reported a 74 percent increase in net income
attributable to Duncan Energy Partners of $23.2 million, or $0.40 per
common unit on a fully diluted basis, for the second quarter of 2009
compared to $13.3 million, or $0.32 per common unit on a fully diluted
basis, for the second quarter of 2008. The allocation of $15.3 million
of earnings from the interests in the midstream businesses which DEP
acquired from Enterprise Products Partners L.P. (“Enterprise”) in
December 2008 (the “DEP II Midstream Businesses”) was the primary reason
for the quarter-to-quarter increase in net income attributable to Duncan
Energy Partners.
The partnership’s share of the distributable cash flow of its operating
subsidiaries increased to $32.3 million for the second quarter of 2009
from $10.8 million for the second quarter of 2008. The $21.5 million
increase in distributable cash flow is attributable to its share of the
distributable cash flow of the DEP II Midstream Businesses, which was
$21.6 million for the second quarter of 2009. Based on the partnership’s
current level of ownership in the DEP II Midstream Businesses, Duncan
Energy Partners expects to receive at least $21.6 million from these
businesses each quarter. The $21.6 million of distributable cash flow
from the DEP II Midstream Businesses with respect to the second quarter
of 2009 represents the second consecutive full quarter that the
partnership has received this level of distribution.
On July 15, 2009, the Board of Directors of Duncan Energy Partners’
general partner declared an increase in the quarterly cash distribution
rate payable to partners with respect to the second quarter of 2009 to
$0.435 per common unit, or $1.74 per unit on an annualized basis. This
represents a 3.6 percent increase over the $0.42 per unit that was paid
with respect to the second quarter of 2008. Distributable cash flow for
the second quarter of 2009 provides 1.3 times coverage of the cash
distribution to be paid to our common unitholders on August 7, 2009.
Distributable cash flow is a non-generally accepted accounting principle
(“non-GAAP”) financial measure that is defined and reconciled later in
this press release to its most directly comparable U.S. GAAP financial
measure, which is net cash flows provided by operating activities.
“We are pleased and excited to be able to achieve such strong financial
results for the second quarter of 2009, particularly in these unsettling
times,” said Richard H. Bachmann, president and chief executive officer
of the general partner of Duncan Energy Partners. “We were not only able
to raise our quarterly cash distribution rate for the third consecutive
quarter, but our distributable cash flow for the quarter provided solid
coverage of the increased cash distributions. Our priority return in the
cash flows of the DEP II Midstream Business, together with our share of
the cash flows of the midstream businesses acquired by the partnership
from Enterprise in February 2007, provides our partnership with a solid
base of free cash flow to invest in growth capital projects that enhance
our current group of businesses, reduce debt and support future
increases in quarterly cash distribution payments to our partners.”
Review of Segment Quarterly Performance
Since Duncan Energy Partners consolidates the financial results of its
operating subsidiaries, the following discussion of segment results
reports gross operating margin and volumes on a 100 percent basis, even
though the partnership owns less than 100 percent of these businesses.
Gross operating margin is a non-GAAP financial measure that is defined
and reconciled later in this press release to its most directly
comparable GAAP financial measure, which is operating income.
Natural Gas Pipelines & Services – Gross operating margin for
the second quarter of 2009 was $30.2 million compared to $43.9 million
for the second quarter of 2008. This decrease was primarily attributable
to lower revenues from condensate sales and higher pipeline integrity
expenses on the Texas Intrastate System and lower gross operating margin
from the Acadian system, which more than offset an increase in
transportation and demand revenues on the Texas Intrastate System. Gross
operating margin from the partnership’s Wilson natural gas storage
facility increased $2.2 million due to increased firm storage
reservation fees.
Total natural gas throughput volumes averaged 4.74 trillion British
thermal units per day (“TBtus/d”) in the second quarter of 2009 compared
to 4.73 TBtus/d in the second quarter of 2008.
NGL Pipelines & Services – Gross operating margin for the
second quarter of 2009 increased to $24.2 million from $14.8 million for
the second quarter of 2008. Net of operational measurement gains and
losses associated with the partnership’s Mont Belvieu NGL and
petrochemical storage facility that are allocated to Enterprise through
noncontrolling interest, gross operating margin increased 24 percent to
$25.5 million for the second quarter of 2009 compared to $20.5 million
for the second quarter of 2008. This improvement in gross operating
margin was primarily due to higher storage revenues attributable to an
increase in storage fees and volumes, a decrease in fuel costs at the
partnership’s facilities in Mont Belvieu and south Texas and lower
maintenance expenses from the partnership’s south Texas NGL
fractionators.
NGL transportation volumes decreased to 106 thousand barrels per day
(“MBPD”) in the second quarter of 2009 from 127 MBPD in the second
quarter of 2008. NGL fractionation volumes also decreased this quarter
to 77 MBPD during the second quarter of 2009 from 80 MBPD in the second
quarter of 2008.
Petrochemical Services – Gross operating margin for the second
quarter of 2009 decreased to $2.6 million from $3.4 million reported in
the second quarter of 2008, primarily due to reduced transportation
volumes on the Lou-Tex propylene pipeline. Total petrochemical
transportation volumes averaged 28 MBPD for the second quarter of 2009
versus 41 MBPD for the second quarter of 2008.
Capitalization
Total debt principal outstanding at June 30, 2009 was approximately $467
million. At June 30, 2009 Duncan Energy Partners had total liquidity of
approximately $131 million, including unrestricted cash and availability
under the partnership’s $300 million revolving credit facility.
In June 2009, Duncan Energy Partners completed a common unit offering of
8,000,000 units that generated net proceeds of approximately $123
million after underwriting discounts and other expenses. In July 2009,
the underwriters to this offering exercised their option to purchase an
additional 943,400 common units, which generated an additional $14.5
million of net proceeds. The total net proceeds of approximately $137
million were used to repurchase 8,943,400 common units of Duncan Energy
Partners held by Enterprise. The repurchased common units were
subsequently cancelled.
Basis of Presentation of Financial
Information
In February 2007, Duncan Energy Partners acquired controlling ownership
interests in five midstream energy companies (the “DEP I Midstream
Businesses”) from Enterprise in a drop down transaction. In December
2008, Duncan Energy Partners acquired controlling ownership interests in
three additional midstream energy companies (the “DEP II Midstream
Businesses”) from Enterprise in a second drop down transaction. Duncan
Energy Partners and Enterprise are affiliates under common control of
Mr. Dan L. Duncan, the Group Co-Chairman and controlling shareholder of
EPCO, Inc.
Prior to the drop down of controlling ownership interests in the DEP I
and DEP II Midstream Businesses to Duncan Energy Partners, Enterprise
owned these businesses and directed their respective activities for all
periods presented (to the extent such businesses were in existence
during such periods). Each of the drop down transactions was accounted
for at Enterprise’s historical costs as a reorganization of entities
under common control in a manner similar to a pooling of interests. On a
standalone basis, Duncan Energy Partners did not own any assets prior to
February 2007.
References to the “former owners” of the DEP I and DEP II Midstream
Businesses in the accompanying financial statements represent the
ownership of Enterprise in these businesses prior to the related drop
down transactions. References to “Duncan Energy Partners” mean the
partnership and its consolidated subsidiaries since February 2007.
Exhibit B to this press release provides supplemental financial
information to assist investors and other users of our financial
statements in understanding the principal sources and uses of cash flows
of Duncan Energy Partners L.P., which for purposes of the presentation
includes DEP Operating Partnership L.P., on a standalone basis.
Use of Non-GAAP Financial Measures
This press release includes the non-GAAP financial measures of gross
operating margin and distributable cash flow. The exhibits accompanying
this press release provide reconciliations of these non-GAAP financial
measures to their most directly comparable financial measures calculated
and presented in accordance with GAAP. Our non-GAAP financial measures
should not be considered as alternatives to GAAP measures such as net
income, operating income, net cash flows provided by operating
activities or any other GAAP measure of liquidity or financial
performance. Our non-GAAP financial measures may not be comparable to
similarly-titled measures of other companies because they may not
calculate such measures in the same manner as we do.
Gross operating margin. We
evaluate segment performance based on the non-GAAP financial measure of
gross operating margin. Gross operating margin (either in total or by
individual segment) is an important performance measure of the
profitability of our consolidated operations. This measure forms the
basis of our internal financial reporting and is used by management in
deciding how to allocate capital resources among business segments. We
believe that investors benefit from having access to the same financial
measures that management uses in evaluating segment results. The GAAP
measure most directly comparable to total segment gross operating margin
is operating income.
We define total segment gross operating margin as consolidated operating
income before (1) depreciation, amortization and accretion expense;
(2) gains and losses from asset sales and related transactions; and
(3) general and administrative expenses. Gross operating margin is
exclusive of other income and expense transactions, provision for income
taxes, extraordinary charges, the cumulative effect of changes in
accounting principles and earnings attributable to noncontrolling
interest. Gross operating margin by segment is calculated by subtracting
segment operating costs and expenses (net of the adjustments noted
above) from segment revenues, with both segment totals before the
elimination of any intersegment and intrasegment transactions. In
accordance with GAAP, intercompany accounts and transactions are
eliminated in consolidation.
Distributable cash flow.
The partnership’s distributable cash flow is a useful non-GAAP measure
of liquidity that approximates the amount of cash flow that Duncan
Energy Partners could pay its unitholders each period before any
reserves established by its general partner. We define the partnership’s
distributable cash flow as the sum of its share of the distributable
cash flow of each of the DEP I and DEP II Midstream Businesses, less any
incremental expenses of the partnership on a standalone basis such as
interest expense and general and administrative costs. In general, we
define the distributable cash flow of our operating subsidiaries as
their net income or loss adjusted for (1) the addition of depreciation,
amortization and accretion expense; (2) the addition of cash
distributions received from unconsolidated affiliates, if any, less
equity earnings; (3) the subtraction of sustaining capital expenditures
and cash payments to settle asset retirement obligations; (4) the
addition of losses or subtraction of gains relating to the sale of
assets and related transactions; (5) the addition of cash proceeds from
the sale of assets and related transactions; (6) the addition of losses
or subtraction of gains on the monetization of financial instruments
recorded in accumulated other comprehensive income (loss), if any, less
related amortization of such amounts to earnings; (7) the addition or
subtraction of other miscellaneous non-cash amounts (as applicable) that
affect net income or loss for the period; (8) the subtraction of any
distributable cash flow amounts due Enterprise as non-controlling
interest or any former owners.
Sustaining capital expenditures are capital expenditures (as defined by
GAAP) resulting from improvements to and major renewals of existing
assets. Such expenditures serve to maintain existing operations but do
not generate additional revenues.
Management compares the distributable cash flow we generate to the cash
distributions we expect to pay our partners. Using this data, management
computes our distribution coverage ratio. Distributable cash flow is
also a quantitative standard used by the investment community with
respect to publicly traded partnerships because the value of a
partnership unit is in part measured by its yield, which is based on the
amount of cash distributions a partnership pays to a unitholder. The
GAAP measure most directly comparable to distributable cash flow is net
cash flows provided by operating activities.
Second Quarter 2009 Earnings
Conference Call
Management for Duncan Energy Partners will discuss second quarter
results during Enterprise’s earnings conference call with analysts and
investors scheduled for 10 a.m. CDT today. The call will be broadcast
live over the Internet and may be accessed by visiting the partnership's
website at www.deplp.com.
Company Information and Use of Forward
Looking Statements
Duncan Energy Partners is a publicly traded partnership that provides
midstream energy services, including gathering, transportation,
marketing and storage of natural gas, in addition to NGL fractionation
(or separation), transportation and storage and petrochemical
transportation and storage. Duncan Energy Partners owns interests in
assets located primarily in Texas and Louisiana, including interests in
approximately 9,200 miles of natural gas pipelines with a transportation
capacity aggregating approximately 6.8 billion cubic feet (“Bcf”) per
day; more than 1,600 miles of NGL and petrochemical pipelines featuring
access to the world’s largest fractionation complex at Mont Belvieu,
Texas; two NGL fractionation facilities located in south Texas;
approximately 18 million barrels (“MMBbls”) of leased NGL storage
capacity; 8.5 Bcf of leased natural gas storage capacity; and 34
underground salt dome caverns with more than 100 MMBbls of NGL storage
capacity at Mont Belvieu. Duncan Energy Partners is managed by its
general partner, DEP Holdings, LLC, which is a wholly-owned subsidiary
of Enterprise. Additional information about Duncan Energy Partners is
available online.
This news release includes forward-looking statements. Except
for the historical information contained herein, the matters discussed
in this news release are forward-looking statements that involve certain
risks and uncertainties, such as the partnership’s expectations
regarding future results, capital expenditures, project completions,
liquidity and financial market conditions. These risks and
uncertainties include, among other things, insufficient cash from
operations, market conditions, governmental regulations and factors
discussed in the partnership’s filings with the U.S. Securities and
Exchange Commission. If any of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results or outcomes may vary materially from those expected. The
partnership disclaims any intention or obligation to update publicly or
reverse such statements, whether as a result of new information, future
events or otherwise.
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Exhibit A
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Duncan Energy Partners L.P.
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Distributable Cash Flow (“DCF”) Summary - UNAUDITED
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For the Three Months and Six Months Ended June 30, 2009 and 2008
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(Amounts in millions, except per unit amounts)
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The following table presents Duncan Energy Partners’ share of the
distributable cash flow of the DEP I and DEP II Midstream
Businesses. The line captioned “Duncan Energy Partners L.P.
standalone expenses, net” primarily represents the interest costs
and general and administrative expenses of the partnership itself,
exclusive of any such amounts attributed to its operating
subsidiaries (i.e., the DEP I and DEP II Midstream Businesses).
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We calculate the distribution coverage ratio by dividing
“Distributable cash flow, net to limited partners” by the number
of average distribution-bearing units outstanding, and further by
the declared distribution rate per unit for the period indicated.
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Three Months
Ended June 30
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Six Months
Ended June 30
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2009
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2008
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2009
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2008
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Distributable Cash Flow Summary:
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DCF of DEP I Midstream Businesses
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$
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13.0
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$
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14.1
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$
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24.9
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$
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26.2
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DCF of DEP II Midstream Businesses
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21.6
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--
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43.3
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--
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Duncan Energy Partners L.P. standalone expenses, net
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(2.3
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)
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(3.3
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)
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(6.4
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)
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(6.5
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)
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Total Duncan Energy Partners L.P. distributable cash flow
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32.3
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10.8
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61.8
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19.7
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Less: Distributions to our general partner
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(0.2
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)
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(0.2
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)
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(0.4
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)
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(0.4
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)
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Distributable cash flow, net to limited partners
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$
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32.1
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$
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10.6
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$
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61.4
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$
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19.3
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Average distribution-bearing units outstanding (in millions)
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57.7
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20.3
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57.7
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20.3
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Distributable cash flow coverage:
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Declared distribution rate per unit
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$
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0.44
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$
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0.42
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$
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0.87
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$
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0.83
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Distribution coverage ratio
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1.28x
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1.25x
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1.23x
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1.14x
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Exhibit B
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Duncan Energy Partners L.P.
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Supplemental Standalone Financial Information - UNAUDITED
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For the Periods Indicated
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(Amounts in millions)
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We are providing the following selected financial information to
assist investors and other users of our financial statements in
understanding the principal sources and uses of cash flows of
Duncan Energy Partners L.P., which includes DEP Operating
Partnership L.P. (“DEP OLP”), on a standalone basis. Duncan Energy
Partners L.P. has no operations apart from its investing
activities and indirectly overseeing the management of the DEP I
and DEP II Midstream Businesses.
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For purposes of this presentation, we have provided information
pertaining to the DEP I Midstream Businesses apart from those of
the DEP II Midstream Businesses. This information is not recast to
include amounts attributable to the former owners of the DEP II
Midstream Businesses.
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Three Months
Ended June 30
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Six Months
Ended June 30
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2009
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2008
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2009
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2008
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Selected income statement information:
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Equity earnings - DEP I Midstream Businesses
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$
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11.4
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$
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10.0
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$
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19.8
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$
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19.3
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Equity earnings - DEP II Midstream Businesses
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$
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15.3
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$
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--
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$
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30.7
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$
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--
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General and administrative costs
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$
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0.1
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$
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0.7
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$
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0.2
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$
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1.2
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Interest expense
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$
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3.4
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$
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2.7
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$
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7.2
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$
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5.5
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Net income attributable to Duncan Energy Partners L.P.
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$
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23.2
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$
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6.6
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$
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43.1
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$
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12.6
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Selected cash flow statement information:
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Cash distributions received from DEP I Midstream Businesses
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$
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10.1
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$
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16.5
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$
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27.6
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$
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56.3
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Cash distributions received from DEP II Midstream Businesses
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$
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21.6
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$
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--
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$
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38.8
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$
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--
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Investments in and advances to DEP I Midstream Businesses:
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Payment to Enterprise for DEP I dropdown
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$
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--
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$
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--
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$
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--
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$
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--
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Post-DEP I dropdown transactions
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$
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--
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$
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11.6
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$
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1.8
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$
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40.6
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Investments in and advances to DEP II Midstream Businesses:
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Payment to Enterprise for DEP II dropdown
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$
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--
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$
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--
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$
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--
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$
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--
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Post-DEP II dropdown transactions
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$
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--
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$
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--
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$
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--
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$
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--
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Proceeds from the issuance of common units:
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Amounts received in connection with June 2009 equity offering
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$
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123.2
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$
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--
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$
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123.2
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$
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--
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Repurchase of common units from EPO (1)
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$
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122.9
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$
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--
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$
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122.9
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$
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--
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Cash distributions to partners
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$
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25.0
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$
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8.5
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$
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38.1
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$
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17.0
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Net borrowings (repayments) under loan agreements
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$
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(3.5
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)
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$
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20.0
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$
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(17.5
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)
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$
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8.0
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Selected balance sheet information at each period end:
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Investment in DEP I Midstream Businesses
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$
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506.7
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$
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518.8
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$
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506.7
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$
|
518.8
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Investment in DEP II Midstream Businesses
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$
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723.5
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$
|
--
|
|
$
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723.5
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|
$
|
--
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|
Long-term debt
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$
|
466.8
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$
|
208.0
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$
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466.8
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$
|
208.0
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Partners’ equity
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$
|
761.9
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$
|
310.2
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$
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761.9
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$
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310.2
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_______________________
(1) The partnership used initial net proceeds from its June 2009
underwritten offering to repurchase 8,000,000 common units owned by
Enterprise at the same net price after deducting underwriting discounts
and commissions. The repurchased units were subsequently cancelled.
These amounts do not reflect the $14.5 million of net proceeds received
in July 2009 due to the underwriters exercising their option to acquire
an additional 943,400 common units in connection with the offering.
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Exhibit C
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Duncan Energy Partners L.P.
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Statements of Consolidated Operations – UNAUDITED
|
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For the Three and Six Months Ended June 30, 2009 and 2008
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(Dollars in millions, except per unit amounts)
|
|
|
|
|
|
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|
|
|
|
|
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Three Months Ended June 30,
|
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|
Six Months Ended June 30,
|
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|
|
2009
|
|
2008
|
|
|
2009
|
|
2008
|
|
Revenue
|
|
$
|
226.7
|
|
|
$
|
478.8
|
|
|
|
$
|
483.5
|
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|
$
|
842.4
|
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Costs and expenses:
|
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|
|
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|
|
|
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Operating costs and expenses
|
|
|
215.5
|
|
|
|
458.7
|
|
|
|
|
454.9
|
|
|
|
796.2
|
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|
General and administrative costs
|
|
|
2.8
|
|
|
|
4.5
|
|
|
|
|
5.6
|
|
|
|
9.7
|
|
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Total costs and expenses
|
|
|
218.3
|
|
|
|
463.2
|
|
|
|
|
460.5
|
|
|
|
805.9
|
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|
Equity in income of Evangeline
|
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0.3
|
|
|
|
0.2
|
|
|
|
|
0.5
|
|
|
|
0.4
|
|
|
Operating income
|
|
|
8.7
|
|
|
|
15.8
|
|
|
|
|
23.5
|
|
|
|
36.9
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(3.4
|
)
|
|
|
(2.7
|
)
|
|
|
|
(7.2
|
)
|
|
|
(5.5
|
)
|
|
Interest income
|
|
|
--
|
|
|
|
0.2
|
|
|
|
|
0.1
|
|
|
|
0.3
|
|
|
Total other expense
|
|
|
(3.4
|
)
|
|
|
(2.5
|
)
|
|
|
|
(7.1
|
)
|
|
|
(5.2
|
)
|
|
Income before provision for income
taxes
|
|
|
5.3
|
|
|
|
13.3
|
|
|
|
|
16.4
|
|
|
|
31.7
|
|
|
Provision for income taxes
|
|
|
(0.8
|
)
|
|
|
(0.6
|
)
|
|
|
|
(0.9
|
)
|
|
|
(0.1
|
)
|
|
Net income
|
|
|
4.5
|
|
|
|
12.7
|
|
|
|
|
15.5
|
|
|
|
31.6
|
|
|
Net loss (income) attributable to
noncontrolling interest:
|
|
|
|
|
|
|
|
|
|
|
DEP I Midstream Businesses - Parent
|
|
|
(3.0
|
)
|
|
|
0.6
|
|
|
|
|
(4.6
|
)
|
|
|
(5.0
|
)
|
|
DEP II Midstream Businesses - Parent
|
|
|
21.7
|
|
|
|
--
|
|
|
|
|
32.2
|
|
|
|
--
|
|
|
Total net loss (income) attributable to noncontrolling interest
|
|
|
18.7
|
|
|
|
0.6
|
|
|
|
|
27.6
|
|
|
|
(5.0
|
)
|
|
Net income attributable to Duncan
Energy Partners L.P.
|
|
$
|
23.2
|
|
|
$
|
13.3
|
|
|
|
$
|
43.1
|
|
|
$
|
26.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of net income
attributable to Duncan Energy Partners L.P.:
|
|
|
|
|
|
|
|
|
|
|
Duncan Energy Partners L.P.:
|
|
|
|
|
|
|
|
|
|
|
Limited partners
|
|
$
|
23.0
|
|
|
$
|
6.5
|
|
|
|
$
|
42.8
|
|
|
$
|
12.4
|
|
|
General partner
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
|
$
|
0.3
|
|
|
$
|
0.2
|
|
|
Former owner of DEP II Midstream Businesses
|
|
|
|
$
|
6.7
|
|
|
|
|
|
$
|
14.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per unit data (fully diluted):
|
|
|
|
|
|
|
|
|
|
|
Net income per unit
|
|
$
|
0.40
|
|
|
$
|
0.32
|
|
|
|
$
|
0.74
|
|
|
$
|
0.61
|
|
|
Average LP units outstanding (in millions)
|
|
|
57.7
|
|
|
|
20.3
|
|
|
|
|
57.7
|
|
|
|
20.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
Net cash flows provided by operating activities
|
|
$
|
62.6
|
|
|
$
|
28.3
|
|
|
|
$
|
82.4
|
|
|
$
|
69.2
|
|
|
Cash used in investing activities
|
|
$
|
108.2
|
|
|
$
|
188.9
|
|
|
|
$
|
223.2
|
|
|
$
|
425.3
|
|
|
Cash provided by financing activities
|
|
$
|
40.2
|
|
|
$
|
159.9
|
|
|
|
$
|
144.2
|
|
|
$
|
367.3
|
|
|
Distributable cash flow (see Exhibit A)
|
|
$
|
32.3
|
|
|
$
|
10.8
|
|
|
|
$
|
61.8
|
|
|
$
|
19.7
|
|
|
Depreciation, amortization and accretion (100% basis)
|
|
$
|
46.2
|
|
|
$
|
42.4
|
|
|
|
$
|
91.2
|
|
|
$
|
82.6
|
|
|
Total debt principal outstanding at end of period
|
|
$
|
466.8
|
|
|
$
|
208.0
|
|
|
|
$
|
466.8
|
|
|
$
|
208.0
|
|
|
|
|
Exhibit D
|
|
Duncan Energy Partners L.P.
|
|
Selected Financial & Operating Data - UNAUDITED
|
|
For the Three and Six Months Ended June 30, 2009 and 2008
|
|
(Dollars in millions, operating data as noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2009
|
|
2008
|
|
|
2009
|
|
2008
|
|
Gross operating margin by segment:
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Pipelines & Services
|
|
$
|
30.2
|
|
|
$
|
43.9
|
|
|
|
$
|
69.0
|
|
|
$
|
84.7
|
|
|
NGL Pipelines & Services
|
|
|
24.2
|
|
|
|
14.8
|
|
|
|
|
45.0
|
|
|
|
37.5
|
|
|
Petrochemical Services
|
|
|
2.6
|
|
|
|
3.4
|
|
|
|
|
5.1
|
|
|
|
6.3
|
|
|
Total gross operating margin
|
|
|
57.0
|
|
|
|
62.1
|
|
|
|
|
119.1
|
|
|
|
128.5
|
|
|
Adjustments to reconcile non-GAAP gross operating margin to
GAAP operating income:
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion in operating costs and
expenses
|
|
|
(45.7
|
)
|
|
|
(42.3
|
)
|
|
|
|
(90.3
|
)
|
|
|
(82.4
|
)
|
|
Gain from asset sales and related transactions
|
|
|
0.2
|
|
|
|
0.5
|
|
|
|
|
0.3
|
|
|
|
0.5
|
|
|
General and administrative costs
|
|
|
(2.8
|
)
|
|
|
(4.5
|
)
|
|
|
|
(5.6
|
)
|
|
|
(9.7
|
)
|
|
Operating income
|
|
$
|
8.7
|
|
|
$
|
15.8
|
|
|
|
$
|
23.5
|
|
|
$
|
36.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected operating data:
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Pipelines & Services, net:
|
|
|
|
|
|
|
|
|
|
|
Natural gas throughput volumes (BBtus/d)
|
|
|
4,744
|
|
|
|
4,731
|
|
|
|
|
4,772
|
|
|
|
4,621
|
|
|
NGL Pipelines & Services:
|
|
|
|
|
|
|
|
|
|
|
Pipeline throughput volumes (MBPD)
|
|
|
106
|
|
|
|
127
|
|
|
|
|
111
|
|
|
|
132
|
|
|
Fractionation volumes (MBPD)
|
|
|
77
|
|
|
|
80
|
|
|
|
|
78
|
|
|
|
81
|
|
|
Petrochemical Services:
|
|
|
|
|
|
|
|
|
|
|
Petrochemical throughput volumes (MBPD)
|
|
|
28
|
|
|
|
41
|
|
|
|
|
25
|
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of net loss (income)
attributable to noncontrolling interest:
|
|
|
|
|
|
|
|
|
|
|
DEP I Midstream Businesses - Parent:
|
|
|
|
|
|
|
|
|
|
|
Mont Belvieu Caverns
|
|
$
|
(0.7
|
)
|
|
$
|
4.3
|
|
|
|
$
|
(0.4
|
)
|
|
$
|
1.9
|
|
|
Acadian Gas
|
|
|
(0.8
|
)
|
|
|
(1.7
|
)
|
|
|
|
(1.0
|
)
|
|
|
(2.9
|
)
|
|
Lou-Tex Propylene
|
|
|
(0.5
|
)
|
|
|
(0.8
|
)
|
|
|
|
(0.8
|
)
|
|
|
(1.4
|
)
|
|
Sabine Propylene
|
|
|
(0.1
|
)
|
|
|
(0.1
|
)
|
|
|
|
(0.4
|
)
|
|
|
(0.2
|
)
|
|
South Texas NGL
|
|
|
(0.9
|
)
|
|
|
(1.1
|
)
|
|
|
|
(2.0
|
)
|
|
|
(2.4
|
)
|
|
Total DEP I Midstream Businesses - Parent
|
|
$
|
(3.0
|
)
|
|
$
|
0.6
|
|
|
|
$
|
(4.6
|
)
|
|
$
|
(5.0
|
)
|
|
DEP II Midstream Businesses - Parent:
|
|
|
|
|
|
|
|
|
|
|
Enterprise Texas
|
|
$
|
16.8
|
|
|
$
|
--
|
|
|
|
$
|
23.3
|
|
|
$
|
--
|
|
|
Enterprise GC
|
|
|
3.2
|
|
|
|
--
|
|
|
|
|
5.5
|
|
|
|
--
|
|
|
Enterprise Intrastate
|
|
|
1.7
|
|
|
|
--
|
|
|
|
|
3.4
|
|
|
|
--
|
|
|
Total DEP II Midstream Businesses - Parent
|
|
$
|
21.7
|
|
|
$
|
--
|
|
|
|
$
|
32.2
|
|
|
$
|
--
|
|
|
Total net loss (income) attributable to noncontrolling interest
|
|
$
|
18.7
|
|
|
$
|
0.6
|
|
|
|
$
|
27.6
|
|
|
$
|
(5.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit E
|
|
Duncan Energy Partners L.P.
|
|
Reconciliation of DCF to Net Cash Flows Provided by Operating
Activities - UNAUDITED
|
|
For the Three and Six Months Ended June 30, 2009 and 2008
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2009
|
|
2008
|
|
|
2009
|
|
2008
|
|
Total Duncan Energy Partners L.P. distributable cash flow
|
|
$
|
32.3
|
|
|
$
|
10.8
|
|
|
|
$
|
61.8
|
|
|
$
|
19.7
|
|
|
Adjustments to distributable cash flow to derive net cash flows
provided by operating activities (add or subtract as indicated by
sign of number):
|
|
|
|
|
|
|
|
|
|
|
Proceeds from asset sales and related transactions
|
|
|
(0.3
|
)
|
|
|
(0.4
|
)
|
|
|
|
(0.4
|
)
|
|
|
(0.4
|
)
|
|
Sustaining capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
DEP I Midstream Businesses
|
|
|
4.8
|
|
|
|
2.5
|
|
|
|
|
7.3
|
|
|
|
5.8
|
|
|
DEP II Midstream Businesses
|
|
|
7.9
|
|
|
|
13.3
|
|
|
|
|
15.8
|
|
|
|
19.2
|
|
|
Other sustaining capital expenditures
|
|
|
--
|
|
|
|
--
|
|
|
|
|
0.1
|
|
|
|
--
|
|
|
Noncontrolling interest share of distributable cash flow:
|
|
|
|
|
|
|
|
|
|
|
DEP I Midstream Businesses - Parent
|
|
|
5.5
|
|
|
|
1.6
|
|
|
|
|
10.2
|
|
|
|
8.7
|
|
|
DEP II Midstream Businesses - Parent
|
|
|
--
|
|
|
|
--
|
|
|
|
|
10.9
|
|
|
|
--
|
|
|
Distributable cash flow of DEP II Midstream Businesses allocated
to EPO (as former owner) for periods prior to December 8, 2008
|
|
|
--
|
|
|
|
26.9
|
|
|
|
|
--
|
|
|
|
55.3
|
|
|
Cash expenditures for asset abandonment activities
|
|
|
--
|
|
|
|
0.1
|
|
|
|
|
--
|
|
|
|
4.7
|
|
|
Accrued repair costs related to Hurricanes Ike and Gustav:
|
|
|
|
|
|
|
|
|
|
|
Accrued property damage repair costs related to Hurricanes Gustav
and Ike
|
|
|
--
|
|
|
|
--
|
|
|
|
|
(0.4
|
)
|
|
|
--
|
|
|
Cash paid for Hurricanes Gustav and Ike repairs
|
|
|
0.4
|
|
|
|
--
|
|
|
|
|
0.7
|
|
|
|
--
|
|
|
Net effect of changes in operating accounts
|
|
|
12.0
|
|
|
|
(26.5
|
)
|
|
|
|
(23.6
|
)
|
|
|
(43.8
|
)
|
|
Net cash flows provided by operating activities
|
|
$
|
62.6
|
|
|
$
|
28.3
|
|
|
|
$
|
82.4
|
|
|
$
|
69.2
|
|
Source: Duncan Energy Partners L.P.
Duncan Energy Partners L.P.
Randy Burkhalter, 713-381-6812
(Investor Relations)
Rick Rainey, 713-381-3635 (Media
Relations)
www.deplp.com
