UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of
Report (Date of earliest event reported)
November
4, 2009
TARGA
RESOURCES PARTNERS LP
(Exact
name of registrant as specified in its charter)
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Delaware
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001-33303
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65-1295427
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(State
or other jurisdiction
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(Commission
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(IRS
Employer
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of
incorporation or organization)
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File
Number)
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Identification
No.)
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1000
Louisiana, Suite 4300
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Houston,
TX 77002
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(Address
of principal executive office and Zip Code)
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(713)
584-1000
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(Registrants’
telephone number, including area code)
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Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Item 2.02 Results of
Operations and Financial Condition.
On
November 4, 2009, Targa Resources Partners LP (the “Partnership”) issued a press
release regarding its financial results for the three months ended September 30,
2009. A conference call to discuss these results is scheduled for
10:00 a.m. Eastern time on Wednesday, November 4, 2009. The conference call
will be webcast live and a replay of the webcast will be available through the
Investors section of the Partnership’s web site (http://www.targaresources.com)
until November 18, 2009. A copy of the earnings press release is furnished as
Exhibit 99.1 to this report, which is hereby incorporated by reference into
this Item 2.02.
The
press release and accompanying schedules and/or the conference call discussions
include the non-generally accepted accounting principles, or non-GAAP, financial
measures of distributable cash flow, operating margin and Adjusted EBITDA. The
press release provides reconciliations of these non-GAAP financial measures to
their most directly comparable financial measure calculated and presented in
accordance with generally accepted accounting principles in the United States of
America (“GAAP”). Our non-GAAP financial measures should not be considered as
alternatives to GAAP measures such as net cash provided by operating activities,
net income (loss) or any other GAAP measure of liquidity or financial
performance.
.
Item 9.01 Financial
Statements and Exhibits.
(d) Exhibits
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Exhibit
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Number
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Description
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Exhibit 99.1
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Targa
Resources Partners LP Press Release dated November 4,
2009.
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
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TARGA
RESOURCES PARTNERS LP
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By:
Targa Resources GP LLC,
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its
general partner
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Dated:
November 4, 2009
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By:
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/s/
Jeffrey J. McParland
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Jeffrey
J. McParland
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Executive
Vice President and Chief Financial
Officer
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EXHIBIT
INDEX
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Exhibit
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Number
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Description
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Exhibit 99.1
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Targa
Resources Partners LP Press Release dated November 4,
2009.
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Exhibit
99.1
Targa
Resources Partners LP Reports Third Quarter 2009 Financial Results
HOUSTON –
November 4, 2009 -Targa Resources Partners LP ("Targa Resources Partners" or the
"Partnership") (NASDAQ: NGLS) today reported third quarter 2009 net income
attributable to Targa Resources Partners of $10.0 million or $0.23 per diluted
limited partner unit. The Partnership reported earnings before interest, income
taxes, depreciation and amortization and non-cash income or loss related to
derivative instruments ("Adjusted EBITDA") of $69.1 million for the third
quarter of 2009.
Distributable
cash flow for the quarter was $51.5 million which corresponds to distribution
coverage of approximately 1.46 times for the 62.9 million total units
outstanding on September 30, 2009 (see the section of this release entitled
“Non-GAAP Financial Measures” for a discussion of Adjusted EBITDA, operating
margin and distributable cash flow, and reconciliations of such measures to the
comparable GAAP measures).
“We are
excited to have closed the acquisition of the Downstream Business during the
third quarter, and are pleased with the Partnership’s very solid third quarter
results. We currently expect the Downstream Business to generate 2009 Adjusted
EBITDA that exceeds our guidance range of $80 to $85 million. Furthermore, our
total gathering and processing volumes continue to perform above last year’s
levels,” said Rene Joyce, Chief Executive Officer of the Partnership's general
partner and of Targa Resources, Inc. ("Targa").
On
October 19, 2009, the Partnership announced a cash distribution of 51.75¢ per
common unit, or $2.07 per unit on an annualized basis, for the third quarter of
2009. The cash distribution will be paid November 13, 2009 on all outstanding
common units to holders of record as of the close of business on November 4,
2009.
Acquisition of the
Downstream Business
On
September 24, 2009 the Partnership acquired Targa’s natural gas liquids business
(the “Downstream Business”) for aggregate consideration of $530 million, subject
to certain adjustments. As part of the transaction, Targa agreed to provide
distribution support to the Partnership in the form of a reduction in the
reimbursement of allocated general and administrative expense if necessary for a
1.0 times distribution coverage ratio, calculated using the current distribution
rate of $0.5175 per limited partner unit and subject to maximum support of $8
million in any quarter. The distribution support will be in effect for the nine
quarter period beginning with the fourth quarter of 2009 and continuing through
the fourth quarter of 2011.
Consideration
to Targa included 25% of the transaction value in newly issued common and
general partner units of the Partnership. The remaining 75% of the transaction
value, or approximately $397.5 million, was funded in cash through borrowings
under the Partnership’s senior secured revolving credit facility.
With the
closing of the acquisition of the Downstream Business, and in accordance with
the accounting treatment for entities under common control, the results of
operations of the Partnership now include the historical results of the
Downstream Business for all periods presented.
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||||
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2009
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2008
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2009
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2008
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|||||||||||||
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(In
millions, except operating and price data)
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||||||||||||||||
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Revenues
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$ | 1,003.8 | $ | 2,214.9 | $ | 2,822.3 | $ | 6,414.6 | ||||||||
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Product
purchases
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874.2 | 2,110.5 | 2,459.3 | 5,985.5 | ||||||||||||
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Operating
expenses
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47.5 | 68.3 | 142.1 | 197.7 | ||||||||||||
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Depreciation
and amortization expense
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25.6 | 24.4 | 75.5 | 72.8 | ||||||||||||
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General
and administrative expense
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17.1 | 19.1 | 55.5 | 57.4 | ||||||||||||
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Casualty
loss adjustment
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- | - | (0.8 | ) | - | |||||||||||
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Gain
on sale of assets
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- | - | - | (4.4 | ) | |||||||||||
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Income
from operations
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39.4 | (7.4 | ) | 90.7 | 105.6 | |||||||||||
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Interest
expense, net
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(29.8 | ) | (25.4 | ) | (78.8 | ) | (71.6 | ) | ||||||||
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Income
tax (expense) benefit
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0.2 | (0.6 | ) | (0.8 | ) | (1.8 | ) | |||||||||
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Other
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1.0 | (4.7 | ) | 3.6 | (2.5 | ) | ||||||||||
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Net
income (loss)
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10.8 | (38.1 | ) | 14.7 | 29.7 | |||||||||||
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Less:
Net income to noncontrolling interest
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0.8 | 0.2 | 1.1 | 0.1 | ||||||||||||
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Net
income (loss) to Targa Resources Partners LP
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$ | 10.0 | $ | (38.3 | ) | $ | 13.6 | $ | 29.6 | |||||||
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Net
loss attributable to predecessor operations
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$ | (4.2 | ) | $ | (52.9 | ) | $ | (2.4 | ) | $ | (38.2 | ) | ||||
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Net
income attributable to general partner
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2.8 | 0.3 | 6.8 | 5.5 | ||||||||||||
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Net
income allocable to limited partners
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11.4 | 14.4 | 9.2 | 62.3 | ||||||||||||
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Basic
and diluted net income per limited partner unit
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$ | 0.23 | $ | 0.31 | $ | 0.19 | $ | 1.35 | ||||||||
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Financial
data:
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||||||||||||||||
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Operating
margin
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$ | 82.1 | $ | 36.1 | $ | 220.9 | $ | 231.4 | ||||||||
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Adjusted
EBITDA
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69.1 | 22.5 | 201.8 | 186.7 | ||||||||||||
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Distributable
cash flow
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51.5 | 1.0 | 158.6 | 132.4 | ||||||||||||
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Operating
data:
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||||||||||||||||
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Gathering
throughput, MMcf/d
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490.2 | 438.3 | 465.2 | 455.0 | ||||||||||||
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Plant
natural gas inlet, MMcf/d
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464.1 | 415.8 | 442.5 | 430.8 | ||||||||||||
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Gross
NGL production, MBbl/d
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43.5 | 41.3 | 43.1 | 43.2 | ||||||||||||
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Natural
gas sales, BBtu/d
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414.9 | 404.4 | 383.0 | 410.9 | ||||||||||||
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NGL
sales, MBbl/d
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262.7 | 282.5 | 278.6 | 290.2 | ||||||||||||
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Condensate
sales, MBbl/d
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2.6 | 2.4 | 2.8 | 2.4 | ||||||||||||
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Average
realized prices:
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||||||||||||||||
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Natural
gas, $/MMBtu
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3.49 | 9.42 | 3.83 | 9.29 | ||||||||||||
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NGLs,
$/gal
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0.81 | 1.66 | 0.71 | 1.56 | ||||||||||||
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Condensate,
$/ Bbl
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71.25 | 103.87 | 55.84 | 103.75 | ||||||||||||
Review of Third Quarter
Results
Net
income attributable to Targa Resources Partners for the third quarter of 2009
was $10.0 million, or $0.23 per diluted limited partner unit, compared to a loss
of $38.3 million, or $0.31 per diluted limited partner unit for the third
quarter of 2008. Income for the third quarter of 2008 was negatively impacted by
inventory lower of cost or market adjustments, hurricane casualty losses and
mark-to-market derivative losses of $31.6 million, $4.9 million and $1.0
million, respectively. Adjusted EBITDA was $69.1 million for the third quarter
of 2009 compared to $22.6 million for the 2008 quarter.
Revenues
decreased by $1,211.1 million, or 55%, to $1,003.8 million for 2009 compared to
$2,214.9 million for 2008, driven primarily by lower commodity prices. Operating
margin was $82.1 million for the third quarter of 2009 compared to $36.1 million
for the third quarter of 2008.
The
Partnership’s average realized prices for natural gas, NGL and condensate
decreased by 63%, 51% and 31% for 2009 compared to 2008.
Natural
gas sales volumes for 2009 increased by 10.5 BBtu/d, or 3% compared to 2008. The
increase in natural gas sales was primarily the result of increased demand by
the Partnership’s industrial customers and increased sales under third party
contracts. NGL sales volumes decreased by 19.8 MBbl/d, or 7% and condensate
sales volumes increased by 0.2 MBbl/d, or 8% for the same periods. For
information regarding the period to period changes in the Partnership’s
commodity sales volumes, see “Review of Segment Performance.”
General
and administrative expenses decreased by $2.0 million, or 10% compared to 2008.
The decrease was primarily due to a reduction in allocated general and
administrative expenses, offset by the timing of and increases to compensation
and benefit expenses as well as increases in property insurance and outside
professional services.
Interest
expense increased by $4.4 million, or 17%, for 2009 compared to 2008. The
increase was primarily due to the issuance of the 11.25% senior unsecured notes,
offset partially by lower overall interest rates.
Review of Nine Months
Results
Net
income attributable to Targa Resources Partners was $13.6 million for the first
nine months of 2009 compared to $29.6 million for the first nine months of 2008.
Adjusted EBITDA was $201.8 million for the first nine months of 2009 compared to
$186.8 million for the 2008 period.
Revenues
were $2,822.3 million for the first nine months of 2009, 56% lower than revenues
of $6,414.6 million for the first nine months of 2008, driven primarily by lower
prices for natural gas, NGL and condensate and lower natural gas and NGL sales
volumes.
The
Partnership’s average realized prices for natural gas, NGL and condensate
decreased by 59%, 54%, and 46% for 2009 compared to 2008.
Natural
gas sales volumes for the first nine months of 2009 decreased by 27.9 BBtu/d, or
7% compared to 2008. The decrease in natural gas sales was primarily the result
of a decrease in purchases from
affiliates
for resale and a decrease in demand by the Partnership’s industrial customers.
NGL sales volumes decreased by 11.6 MBbl/d, or 4% and condensate sales volumes
increased by 0.4 MBbl/d, or 17%, for the same periods. For information regarding
the period to period changes in our commodity sales volumes, see “Review of
Segment Performance.”
General
and administrative expenses decreased by $1.9 million, or 3%, to $55.5 million
for 2009 compared to $57.4 million for 2008. The decrease was primarily due to a
decrease in allocated general and administrative expenses, offset by the timing
of and increases to compensation and benefit expenses and increased outside
professional services.
Interest
expense increased by $7.2 million, or 10%, for 2009 compared to 2008. The increase
was primarily due to the issuance of the 11.25% senior unsecured
notes.
Review of
Segment Performance
The
following discussion of segment performance includes inter-segment revenues. The
Partnership views segment operating margin as an important performance measure
of the core profitability of its operations. This measure is a key component of
internal financial reporting and is reviewed for consistency and trend analysis.
The generally accepted accounting principles ("GAAP") measure most directly
comparable to segment operating margin is net income. Operating margin is a
non-GAAP financial measure that is defined later in this
release.
Natural
Gas Gathering and Processing Segment
The
Natural Gas Gathering and Processing segment consists of the gathering of
natural gas produced from oil and gas wells and processing this raw natural gas
into merchantable natural gas by extracting natural gas liquids and removing
impurities.
The
following table provides summary data regarding results of operations of this
segment for the periods indicated:
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2009
|
2008
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2009
|
2008
|
|||||||||||||
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($
in millions)
|
||||||||||||||||
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Revenues
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$ | 273.1 | $ | 578.6 | $ | 752.8 | $ | 1,721.4 | ||||||||
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Product
purchases
|
(212.6 | ) | (512.5 | ) | (592.8 | ) | (1,509.8 | ) | ||||||||
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Operating
expenses
|
(14.3 | ) | (15.5 | ) | (39.0 | ) | (42.7 | ) | ||||||||
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Operating
margin
|
$ | 46.2 | $ | 50.6 | $ | 121.0 | $ | 168.9 | ||||||||
|
Operating
statistics:
|
||||||||||||||||
|
Gathering
throughput, MMcf/d
|
||||||||||||||||
|
LOU
System
|
213.4 | 178.1 | 183.1 | 189.4 | ||||||||||||
|
SAOU
System
|
98.5 | 99.0 | 99.9 | 98.7 | ||||||||||||
|
North
Texas System
|
178.3 | 161.2 | 182.2 | 166.9 | ||||||||||||
| 490.2 | 438.3 | 465.2 | 455.0 | |||||||||||||
|
Plant
natural gas inlet, MMcf/d
|
||||||||||||||||
|
LOU
System
|
199.4 | 168.5 | 174.2 | 178.8 | ||||||||||||
|
SAOU
System
|
92.0 | 91.3 | 92.1 | 91.2 | ||||||||||||
|
North
Texas System
|
172.7 | 156.0 | 176.2 | 160.8 | ||||||||||||
| 464.1 | 415.8 | 442.5 | 430.8 | |||||||||||||
|
Gross
NGL production, MBbl/d
|
||||||||||||||||
|
LOU
System
|
9.0 | 9.2 | 8.5 | 10.1 | ||||||||||||
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SAOU
System
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14.0 | 14.1 | 14.2 | 14.2 | ||||||||||||
|
North
Texas System
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20.5 | 18.0 | 20.4 | 18.9 | ||||||||||||
| 43.5 | 41.3 | 43.1 | 43.2 | |||||||||||||
|
Natural
gas sales, BBtu/d
|
414.9 | 404.4 | 383.0 | 410.9 | ||||||||||||
|
NGL
sales, MBbl/d
|
40.6 | 37.4 | 39.2 | 38.2 | ||||||||||||
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Condensate
sales, MBbl/d
|
2.6 | 3.3 | 3.0 | 3.6 | ||||||||||||
|
Average
realized prices:
|
||||||||||||||||
|
Natural
gas, $/MMBtu
|
3.49 | 9.42 | 3.83 | 9.29 | ||||||||||||
|
NGLs,
$/gal
|
0.73 | 1.46 | 0.64 | 1.40 | ||||||||||||
|
Condensate,
$/Bbl
|
71.25 | 95.58 | 54.00 | 92.72 | ||||||||||||
Review
of Third Quarter Results
Revenues
decreased by $305.5 million, or 53%, to $273.1 million for the third quarter of
2009 compared to $578.6 million for the third quarter of 2008. The decrease was
primarily due to:
|
|
·
|
a
decrease attributable to commodity prices of $325.2 million, comprising
decreases in natural gas, NGL and condensate revenues of $226.4 million,
$93.1 million and $5.7 million;
|
|
|
·
|
an
increase attributable to commodity sales volume of $20.9 million
comprising increases in natural gas and condensate revenues of $9.1
million and $19.1 million, partially offset by a decrease in NGL revenues
of $7.3 million; and
|
|
|
·
|
a
decrease in other revenues of $1.2 million, primarily from miscellaneous
processing activities.
|
The
average realized price for natural gas, NGL and condensate decreased by 63%,
50%, and 25%, for 2009 compared to 2008.
Natural
gas sales volumes increased by 10.5 BBtu/d, or 3%, for 2009 compared to 2008.
The increase in natural gas sales volumes was primarily the result of an
increase in demand from the Partnership’s industrial customers and increased
sales under third party contracts. NGL sales volumes increased by 3.2 MBbl/d, or
9% and condensate sales volumes decreased by 0.7 MBbl/d, or 21%, for the same
periods.
Product
purchases decreased by $299.9 million, or 59% compared to 2008. The decrease in
product purchase cost reflects lower commodity pricing and purchases of wellhead
volumes.
Operating
expenses for 2009 decreased by $1.2 million, or 8% compared to 2008. The
decrease in operating expenses was primarily the result of a decrease in
compensation and benefit costs, system maintenance expenses, chemicals and
lubricants expenses and utility expenses, partially offset by an increase in ad
valorem taxes.
Review
of Nine Month Results
Revenues
decreased by $968.6 million, or 56%, for 2009 compared to 2008. The decrease was
primarily due to:
|
|
·
|
a
decrease attributable to commodity prices of $893.1 million, comprising
decreases in natural gas, NGL and condensate revenues of $570.0 million,
$290.8 million and $32.2 million;
|
|
|
·
|
a
decrease attributable to commodity sales volume of $74.5 million
comprising decreases in natural gas and condensate revenues of $74.6
million and $16.4 million, partially offset by an increase in NGL revenues
of $16.5 million; and
|
|
|
·
|
a
decrease in other revenues of $1.0 million, primarily from miscellaneous
processing activities.
|
Average
realized price for natural gas, NGL and condensate decreased by 59%, 54%, and
42%, for 2009 compared to 2008.
Natural
gas sales volumes decreased by 27.9 BBtu/d, or 7%, for 2009 compared to 2008.
The decrease in natural gas sales was primarily the result of a decrease in
purchases from affiliates. NGL sales volumes increased by 1.0 MBbl/d, or 3%, for
2009 compared to 2008. Condensate sales volumes decreased by 0.6 MBbl/d, or 17%,
for 2009 compared to 2008.
Product
purchases for 2009 decreased by $917.0 million, or 61% compared to 2008. The
decrease in product cost reflects lower commodity pricing and purchases of
wellhead volumes.
Operating
expenses for 2009 decreased $3.7 million, or 9% compared to 2008. The decrease
was primarily the result of a decrease in compensation and benefit costs, system
maintenance expenses, utility expenses, chemical and lubricant expenses and
outside professional services costs.
Logistics
Assets Segment
The
Logistics Assets segment is involved with gathering and storing mixed NGLs and
fractionating, storing, treating and transporting finished NGLs. These assets
are predominantly located in Mont Belvieu and Galena Park, Texas and in western
Louisiana. They are generally connected to and supplied in part by Targa’s
natural gas processing plants.
The
following table provides summary data regarding results of operations of this
segment for the periods indicated:
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
($
in millions)
|
||||||||||||||||
|
Revenues
from services
|
$ | 55.1 | $ | 65.5 | $ | 152.9 | $ | 181.8 | ||||||||
|
Other
revenues
|
(0.1 | ) | 0.1 | 2.0 | 0.6 | |||||||||||
| 55.0 | 65.6 | 154.9 | 182.4 | |||||||||||||
|
Operating
expenses
|
(29.9 | ) | (49.8 | ) | (97.7 | ) | (147.9 | ) | ||||||||
|
Operating
margin
|
$ | 25.1 | $ | 15.8 | $ | 57.2 | $ | 34.5 | ||||||||
|
Equity
in earnings of GCF
|
$ | 1.4 | $ | 1.1 | $ | 3.2 | $ | 3.0 | ||||||||
|
Operating
statistics:
|
||||||||||||||||
|
Fractionation
volumes, MBbl/d
|
225.9 | 207.1 | 215.4 | 219.3 | ||||||||||||
|
Treating
volumes, MBbl/d
|
27.5 | 20.4 | 18.5 | 19.0 | ||||||||||||
Review
of Third Quarter Results
Revenues
from services (fractionation, terminalling and storage, transportation and
treating) decreased by $10.4 million, or 16%, for 2009 compared to 2008. The
decrease was primarily due to a lower fuel cost reimbursement component of
fractionation fees, which has an equal impact on operating
expenses.
Operating
expenses decreased by $19.9 million, or 40% compared to 2008. The decrease was
due to lower expenses for fuel, utilities, equipment rental and maintenance, and
barge fees related to lower volumes and decreased fuel and utility
rates.
Review
of Nine Months Results
Revenues from services (fractionation, terminalling and storage, transportation and treating) decreased by $28.9 million, or 16%, for 2009 compared to 2008. The decrease was primarily due to decreased fractionation and terminalling and storage volumes as a result of damage to certain of our and third party
Gulf
Coast processing, pipeline and production facilities from Hurricane Ike as well
as a lower fuel reimbursement component of fractionation fees. In addition,
truck and barge volumes were lower for 2009 due to decreased mixed butanes and
wholesale activity.
Operating
expenses decreased by $50.2 million, or 34%, for 2009 compared to 2008. The
decrease was due to lower fuel, utility, equipment rental/maintenance, and barge
fees related to lower volumes and decreased fuel and utility rates.
NGL
Distribution and Marketing Services Segment
The NGL
Distribution and Marketing Services segment markets the Partnership’s natural
gas liquids production and also purchased natural gas liquids products in
selected United States markets. The following table provides summary data
regarding results of operations of this segment for the periods
indicated:
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
($
in millions)
|
||||||||||||||||
|
NGL
sales revenues
|
$ | 762.4 | $ | 1,654.0 | $ | 2,011.2 | $ | 4,564.4 | ||||||||
|
Other
revenues
|
1.4 | 0.8 | 3.6 | 10.9 | ||||||||||||
| 763.8 | 1,654.8 | 2,014.8 | 4,575.3 | |||||||||||||
|
Product
purchases
|
(755.7 | ) | (1,679.4 | ) | (1,982.2 | ) | (4,558.8 | ) | ||||||||
|
Operating
expenses
|
- | (0.3 | ) | (0.6 | ) | (1.5 | ) | |||||||||
|
Operating
margin
|
$ | 8.1 | $ | (24.9 | ) | $ | 32.0 | $ | 15.0 | |||||||
|
Operating
statistics:
|
||||||||||||||||
|
NGL
sales, MBbl/d
|
244.5 | 258.1 | 251.2 | 257.5 | ||||||||||||
|
NGL
realized price, $/gal
|
0.81 | 1.66 | 0.70 | 1.54 | ||||||||||||
Review
of Third Quarter Results
NGL sales
revenues decreased by $891.6 million, or 54%, for 2009 compared to 2008. The
decrease comprised a $736.1 million decrease from lower average sales prices,
which were down 51% for 2009 compared to 2008 and a $155.5 million decrease from
lower sales volumes, down 5% for 2009 compared to 2008. The decrease in sales
volumes was primarily attributable to a change in contract terms with a large
petrochemical customer partially offset by higher plant operational rates and
spot sales. Other revenues, which consist primarily of non-commodity based
service revenue, increased by $0.6 million.
Product
purchases decreased by $923.7 million, or 55%, for 2009 compared to 2008. The
net decrease comprised a $768.2 million decrease from lower average market
prices and a $155.5 million decrease from lower purchased
volumes.
Review
of Nine Months Results
NGL sales
revenues decreased by $2,553.2 million, or 56%, to $2,011.2 million for 2009
compared to $4,564.4 million for 2008. The decrease comprised a $2,272.3 million
decrease from lower average sales prices during 2009, down 55% or $0.84 per
gallon and a $280.9 million decrease from lower sales volumes during 2009, down
2% or 6.3 MBbl/d. The decrease in sales volumes was primarily due to reduced
sales to petrochemical customers associated with their lower plant operational
rates, partially offset by higher spot sales.
Other
revenues decreased by $7.3 million, primarily due to $8.6 million in proceeds
from business interruption claims received in 2008 partially offset by lower
2008 non-commodity based service revenue of $1.3 million.
Product
purchases decreased by $2,576.6 million, or 57%, to $1,982.2 million for 2009
compared to $4,558.8 million for 2008. The decrease comprised a $2,297.3 million
decrease due to lower commodity prices and a $279.3 million decrease from lower
purchased volumes.
Wholesale
Marketing Segment
The
Wholesale Marketing segment includes the Partnership’s refinery services
business and wholesale propane marketing business. In the refinery services
business, the Partnership provides LPG (liquefied petroleum gas) balancing
services, purchases natural gas liquids products from refinery customers and
sells natural gas liquids products to various customers. The wholesale propane
marketing business includes the sale of propane and related logistics services
to multi-state retailers, independent retailers and other end-users. Wholesale
Marketing operates principally in the United States and has a small marketing
presence in Canada.
The
following table provides summary data regarding results of operations of this
segment for the periods indicated:
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
($
in millions)
|
||||||||||||||||
|
NGL
sales revenues
|
$ | 141.7 | $ | 320.6 | $ | 559.4 | $ | 1,175.3 | ||||||||
|
Other
revenues
|
0.3 | - | 1.2 | 5.9 | ||||||||||||
| 142.0 | 320.6 | 560.6 | 1,181.2 | |||||||||||||
|
Product
purchases
|
(138.7 | ) | (326.0 | ) | (549.9 | ) | (1,168.2 | ) | ||||||||
|
Operating
margin
|
$ | 3.3 | $ | (5.4 | ) | $ | 10.7 | $ | 13.0 | |||||||
|
Operating
statistics:
|
||||||||||||||||
|
NGL
sales, MBbl/d
|
41.2 | 47.0 | 54.9 | 60.1 | ||||||||||||
|
NGL
realized price, $/gal
|
0.89 | 1.77 | 0.89 | 1.70 | ||||||||||||
Review
of Third Quarter Results
NGL sales
revenues decreased by $178.9 million, or 56%, to $141.7 million for 2009
compared to $320.6 million for 2008. Lower NGL market prices decreased revenue
by $139.2 million and lower sales volumes decreased revenue by an additional
$39.6 million. The 5.8 MBbl/d decrease in volumes was primarily due to decreased
sales of propane due to the expiration of refinery purchase
agreements.
Product
purchases decreased by $187.3 million, or 57%, to $138.7 million for 2009
compared to $326.0 million for 2008. Lower NGL market prices and lower sales
volumes resulted in decreases in product purchases of $147.7 million and $39.7
million in 2009.
Review
of Nine Months Results
NGL sales
revenues decreased by $615.9 million, or 52%, for 2009 compared to 2008. Lower
NGL market prices decreased revenue by $510.4 million and lower sales volumes
decreased revenue by an additional $105.5 million. The 5.2 MBbl/d decrease in
volumes was primarily due to reduced sales of propane as a result of the
expiration of sales supply agreements as well as lower butane sales associated
with the expiration of a refinery supply agreement.
Product
purchases decreased by $618.3 million, or 53%, for 2009 compared to 2008. Lower
NGL market prices and lower sales volumes resulted in decreases in product
purchases of $528.1 million and $90.4 million in 2009.
Capitalization and Liquidity
Update
Total
funded debt as of September 30, 2009 was approximately $939 million including
$510 million outstanding under the Partnership’s $978 million senior secured
revolving credit facility, $209 million of 8.25% senior unsecured notes due 2016
and $220 million of 11.25% senior unsecured notes due 2017. During the third
quarter the Partnership repurchased a face amount of $18.7 million of its 11.25
percent senior notes due 2017 in open market transactions at an aggregate
purchase price of $19.2 million including $0.3 million of accrued interest. The
purchased notes were retired and will not be eligible for re-issue at a later
date.
On August
12, 2009, the Partnership completed a public offering of 6,900,000 common units
representing limited partner interests resulting in net proceeds of $103.5
million.
As of
September 30, 2009, the Partnership had $390 million in capacity available under
its senior secured revolving credit facility after giving effect to the Lehman
default and the issuance of $59 million of letters of credit. As of September
30, 2009, the Partnership had $58 million of cash, bringing total liquidity to
approximately $448 million.
Including
the Downstream Business, we estimate capital expenditures of the Partnership to
be approximately $50 million in 2009. Maintenance capital expenditures account
for approximately 40% of the 2009 estimate.
Conference
Call
Targa
Resources Partners will host a conference call for investors and analysts at 10
a.m. Eastern Time (9 a.m. Central Time) on November 4, 2009 to discuss third
quarter 2009 financial results. The conference call can be accessed via Webcast
through the Investor's section of the Partnership's website at
http://www.targaresources.com or by dialing (800) 762-8908. The pass code is
4173122. Please dial in ten minutes prior to the scheduled start time. A replay
will be available approximately two hours following completion of the Webcast
through the Investor's section of the Partnership's website and will remain
available until November 18, 2009. Replay access numbers are 303-590-3030 or
800-406-7325 with pass code 4173122.
About Targa Resources
Partners
Targa
Resources Partners was formed by Targa to engage in the business of gathering,
compressing, treating, processing and selling natural gas and fractionating and
selling natural gas liquids and natural gas liquids products. Targa Resources
Partners owns an extensive network of integrated gathering pipelines, seven
natural gas processing plants and two fractionators and currently operates in
Southwest Louisiana, the Permian Basin in West Texas and the Fort Worth Basin in
North Texas. A subsidiary of Targa is the general partner of Targa Resources
Partners. Additionally, our natural gas liquids logistics and marketing assets
are located primarily at Mont Belvieu and Galena Park near Houston, Texas and in
Lake Charles, Louisiana with terminals and transportation assets across the
United States.
Targa
Resources Partners' principal executive offices are located at 1000 Louisiana,
Suite 4300, Houston, Texas 77002 and its telephone number is 713-584-1000. For
more information, visit www.targaresources.com.
Non-GAAP Financial
Measures
This
press release and accompanying schedules include the non-GAAP financial measures
Adjusted EBITDA, operating margin and distributable cash flow. The accompanying
schedules provide reconciliations of these non-GAAP financial measures to their
most directly comparable financial measure calculated and presented in
accordance with U.S. generally accepted accounting principles ("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.
Distributable Cash
Flow—Distributable cash flow is a significant performance metric used by
the Partnership and by external users of its financial statements, such as
investors, commercial banks, research analysts and others to compare basic cash
flows generated by the Partnership (prior to the establishment of any retained
cash reserves by the general partner) to the cash distributions the Partnership
expects to pay to unitholders. Using this metric, management can quickly compute
the coverage ratio of estimated cash flows to planned cash distributions.
Distributable cash flow is also an important non-GAAP financial measure for the
Partnership’s unitholders because it serves as an indicator of the Partnership’s
success in providing a cash return on investment. Specifically, this financial
measure indicates to investors whether or not the Partnership is generating cash
flow at a level that can sustain or support an increase in its quarterly
distribution rates. Distributable cash flow is also a quantitative standard used
throughout the investment community with respect to publicly-traded partnerships
and limited liability companies because the value of a unit of such an entity is
generally determined by the unit's yield (which in turn is based on the amount
of cash distributions the entity pays to a unitholder). The economic substance
behind the Partnership’s use of distributable cash flow is to measure the
ability of its assets to generate cash flows sufficient to make distributions to
unitholders.
The GAAP
measure most directly comparable to distributable cash flow is net income
(loss). The Partnership’s non-GAAP measure of distributable cash flow should not
be considered as an alternative to GAAP net income (loss). Distributable cash
flow is not a presentation made in accordance with GAAP and has important
limitations as an analytical tool. You should not consider distributable cash
flow in isolation or as a substitute for analysis of the Partnership’s results
as reported under GAAP. Because distributable cash flow excludes some, but not
all, items that affect net income (loss) and is defined differently by different
publicly-traded partnerships and limited liability companies, the Partnership’s
definition of distributable cash flow may not be comparable to similarly titled
measures of other companies, thereby diminishing its utility. Management
compensates for the limitations of distributable cash flow as an analytical tool
by reviewing the comparable GAAP measures, understanding the differences between
the measures and incorporating these learnings into its decision-making
processes.
The
following table presents a reconciliation of net income to distributable cash
flow for the periods indicated:
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
(In
millions)
|
||||||||||||||||
|
Reconciliation
of net income (loss) to Targa Resources Partners LP
|
||||||||||||||||
|
to
distributable cash flow:
|
||||||||||||||||
|
Net
income (loss) to Targa Resources Partners LP
|
$ | 10.0 | $ | (38.3 | ) | $ | 13.6 | $ | 29.6 | |||||||
|
Add:
|
||||||||||||||||
|
Depreciation
and amortization expense
|
25.6 | 24.4 | 75.5 | 72.8 | ||||||||||||
|
Deferred
income tax expense (benefit)
|
0.1 | 0.5 | 0.8 | 1.4 | ||||||||||||
|
Noncash
interest expense
|
15.0 | 15.4 | 45.9 | 45.9 | ||||||||||||
|
Loss
on debt repurchases
|
1.5 | - | 1.5 | - | ||||||||||||
|
Non-cash
loss related to derivatives
|
4.1 | 10.6 | 33.8 | 11.6 | ||||||||||||
|
Maintenance
capital expenditures
|
(4.7 | ) | (11.4 | ) | (12.1 | ) | (28.5 | ) | ||||||||
|
Other
|
(0.1 | ) | (0.2 | ) | (0.4 | ) | (0.4 | ) | ||||||||
|
Distributable
cash flow
|
$ | 51.5 | $ | 1.0 | $ | 158.6 | $ | 132.4 | ||||||||
Adjusted EBITDA—The
Partnership defines Adjusted EBITDA as net income before interest, income taxes,
depreciation and amortization and non-cash income or loss related to derivative
instruments. Adjusted EBITDA is used as a supplemental financial measure by
management and by external users of the Partnership’s financial statements such
as investors, commercial banks and others, to assess: (1) the financial
performance of the Partnership’s assets without regard to financing methods,
capital structure or historical cost basis; (2) the Partnership’s operating
performance and return on capital as compared to other companies in the
midstream energy sector, without regard to financing or capital structure; and
(3) the viability of acquisitions and capital expenditure projects and the
overall rates of return on alternative investment opportunities.
The
economic substance behind management's use of Adjusted EBITDA is to measure the
ability of the Partnership’s assets to generate cash sufficient to pay interest
costs, support indebtedness and make distributions to unitholders. The GAAP
measure most directly comparable to Adjusted EBITDA is net income. The
Partnership’s non-GAAP financial measure of Adjusted EBITDA should not be
considered as an alternative to GAAP net income. Adjusted EBITDA is not a
presentation made in accordance with GAAP and has important limitations as an
analytical tool. You should not consider Adjusted EBITDA in isolation or as a
substitute for analysis of the Partnership’s results as reported under GAAP.
Because Adjusted EBITDA excludes some, but not all, items that affect net income
and is defined differently by different companies, the Partnership’s definition
of Adjusted EBITDA may not be comparable to similarly titled measures of other
companies, thereby diminishing its utility. Management compensates for the
limitations of Adjusted EBITDA as an analytical tool by reviewing the comparable
GAAP measures, understanding the differences between the measures and
incorporating these learnings into its decision-making processes.
Operating Margin— With respect
to the Natural Gas Gathering and Processing division, the Partnership defines
operating margin as total operating revenues, which consist of natural gas and
NGL sales plus service fee revenues, less product purchases, which consist
primarily of producer payments and other natural gas purchases less operating
expense. Natural gas and NGL sales revenue includes settlement gains and losses
on commodity hedges. Our Natural Gas Gathering and Processing
segment
operating
margin is impacted by volumes and commodity prices as well as by our contract
mix and hedging program, which are described in more detail in the Partnership’s
reports and other filings with the Securities and Exchange
Commission.
With
respect to our NGL Logistics and Marketing division, the Partnership defines
operating margin as total revenue, which consists primarily of service fee
revenues and NGL sales, less cost of sales, which consists primarily of NGL
purchases and changes in inventory valuation. Within this division, our
management analyzes segment operating margin for each of the three segments per
unit of NGL handled or sold as an indicator of operational and commercial
performance.
The GAAP
measure most directly comparable to operating margin is net income. The
Partnership’s non-GAAP financial measure of operating margin should not be
considered as an alternative to GAAP net income. Operating margin is not a
presentation made in accordance with GAAP and has important limitations as an
analytical tool. You should not consider operating margin in isolation or as a
substitute for analysis of the Partnership’s results as reported under GAAP.
Because operating margin excludes some, but not all, items that affect net
income and is defined differently by different companies, the Partnership’s
definition of operating margin may not be comparable to similarly titled
measures of other companies, thereby diminishing its utility. Management
compensates for the limitations of operating margin as an analytical tool by
reviewing the comparable GAAP measures, understanding the differences between
the measures and incorporating these learnings into its decision-making
processes.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
(In
millions)
|
||||||||||||||||
|
Reconciliation
of net cash provided by (used in)
|
||||||||||||||||
|
operating
activities to Adjusted EBITDA:
|
||||||||||||||||
|
Net
cash provided by (used in) operating activities
|
$ | 64.8 | $ | (168.2 | ) | $ | 219.9 | $ | 128.6 | |||||||
|
Net
income to noncontrolling interest
|
(0.8 | ) | (0.2 | ) | (1.1 | ) | (0.1 | ) | ||||||||
|
Termination
of commodity derivatives
|
- | 87.4 | - | 87.4 | ||||||||||||
|
Interest
expense, net
|
14.8 | 10.0 | 32.9 | 25.7 | ||||||||||||
|
Other
|
(3.9 | ) | (1.2 | ) | (3.5 | ) | 4.0 | |||||||||
|
Changes
in operating working capital which used (provided) cash:
|
||||||||||||||||
|
Accounts
receivable and other assets
|
22.3 | (36.4 | ) | (5.5 | ) | (160.1 | ) | |||||||||
|
Accounts
payable and other liabilities
|
(28.1 | ) | 131.1 | (40.9 | ) | 101.2 | ||||||||||
|
Adjusted
EBITDA
|
$ | 69.1 | $ | 22.5 | $ | 201.8 | $ | 186.7 | ||||||||
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
(In
millions)
|
||||||||||||||||
|
Reconciliation
of net income (loss) to Targa Resources Partners LP to Adjusted
EBITDA:
|
||||||||||||||||
|
Net
income (loss) to Targa Resources Partners LP
|
$ | 10.0 | $ | (38.3 | ) | $ | 13.6 | $ | 29.6 | |||||||
|
Add:
|
||||||||||||||||
|
Interest
expense, net
|
29.8 | 25.4 | 78.8 | 71.6 | ||||||||||||
|
Income
tax expense (benefit)
|
(0.2 | ) | 0.6 | 0.8 | 1.8 | |||||||||||
|
Depreciation
and amortization expense
|
25.6 | 24.4 | 75.5 | 72.8 | ||||||||||||
|
Non-cash
loss related to derivatives
|
4.1 | 10.6 | 33.8 | 11.6 | ||||||||||||
|
Noncontrolling
interest adjustment
|
(0.2 | ) | (0.2 | ) | (0.7 | ) | (0.7 | ) | ||||||||
|
Adjusted
EBITDA
|
$ | 69.1 | $ | 22.5 | $ | 201.8 | $ | 186.7 | ||||||||
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
|
(In
millions)
|
||||||||||||||||
|
Reconciliation
of net income (loss) to Targa Resources Partners LP to operating
margin:
|
||||||||||||||||
|
Net
income (loss) to Targa Resources Partners LP
|
$ | 10.0 | $ | (38.3 | ) | $ | 13.6 | $ | 29.6 | |||||||
|
Add:
|
||||||||||||||||
|
Depreciation
and amortization expense
|
25.6 | 24.4 | 75.5 | 72.8 | ||||||||||||
|
General
and administrative expense
|
17.1 | 19.1 | 55.5 | 57.4 | ||||||||||||
|
Interest
expense, net
|
29.8 | 25.4 | 78.8 | 71.6 | ||||||||||||
|
Income
tax benefit (expense)
|
(0.2 | ) | 0.6 | 0.8 | 1.8 | |||||||||||
|
Other,
net
|
(0.2 | ) | 4.9 | (3.3 | ) | (1.8 | ) | |||||||||
|
Operating
margin
|
$ | 82.1 | $ | 36.1 | $ | 220.9 | $ | 231.4 | ||||||||
|
Reconciliation of non-GAAP Measures for the
Downstream Business
|
||||||||
|
Twelve
Months Ended
|
||||||||
|
December
31, 2009
|
||||||||
|
(In
millions)
|
||||||||
|
Low Range
|
High Range
|
|||||||
|
Reconciliation
of net income to Adjusted EBITDA
|
||||||||
|
Net
income
|
$ | (5.6 | ) | $ | (0.6 | ) | ||
|
Depreciation
and amortization
|
25.4 | 25.4 | ||||||
|
Interest
expense
|
59.4 | 59.4 | ||||||
|
Income
tax expense
|
0.8 | 0.8 | ||||||
|
Adjusted
EBITDA
|
$ | 80.0 | $ | 85.0 | ||||
Forward-Looking
Statements
Certain
statements in this release are "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements, other than
statements of historical facts, included in this release that address
activities, events or developments that the Partnership expects, believes or
anticipates will or may occur in the future are forward-looking statements.
These forward-looking statements rely on a number of assumptions concerning
future events and are subject to a number of uncertainties, factors and risks,
many of which are outside Targa Resources Partners' control, which could cause
results to differ materially from those expected by management of Targa
Resources Partners. Such risks and uncertainties include, but are not limited
to, weather, political, economic and market conditions, including declines in
the production of natural gas or in the price and market demand for natural gas
and natural gas liquids, the timing and success of business development efforts,
the credit risk of customers and other uncertainties. These and other applicable
uncertainties, factors and risks are described more fully in the Partnership's
reports and other filings with the Securities and Exchange Commission. Targa
Resources Partners undertakes no obligation to update or revise any
forward-looking statement, whether as a result of new information, future events
or otherwise.
Investor
contact info:
Phone:
713-584-1133
Anthony
Riley
Senior
Manager - Finance/Investor Relations
Matt
Meloy
Vice
President - Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
|
||||||||||||||||
|
FINANCIAL
SUMMARY (unaudited)
|
||||||||||||||||
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
||||||||||||||||
|
(In
thousands)
|
||||||||||||||||
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
REVENUES
|
$ | 1,003,778 | $ | 2,214,851 | $ | 2,822,284 | $ | 6,414,564 | ||||||||
|
COSTS
AND EXPENSES:
|
||||||||||||||||
|
Product
purchases
|
874,228 | 2,110,428 | 2,459,296 | 5,985,455 | ||||||||||||
|
Operating
expenses
|
47,474 | 68,255 | 142,096 | 197,690 | ||||||||||||
|
Depreciation
and amortization expense
|
25,597 | 24,431 | 75,490 | 72,785 | ||||||||||||
|
General
and administrative expense
|
17,078 | 19,116 | 55,474 | 57,433 | ||||||||||||
|
Other
|
(1 | ) | (13 | ) | (852 | ) | (4,440 | ) | ||||||||
|
Total
costs and expenses
|
964,376 | 2,222,217 | 2,731,504 | 6,308,923 | ||||||||||||
|
INCOME
FROM OPERATIONS
|
39,402 | (7,366 | ) | 90,780 | 105,641 | |||||||||||
|
Other
income (expense):
|
||||||||||||||||
|
Interest
expense from affiliate indebtedness
|
(13,701 | ) | (14,832 | ) | (43,414 | ) | (44,400 | ) | ||||||||
|
Other
interest expense, net
|
(16,097 | ) | (10,617 | ) | (35,344 | ) | (27,175 | ) | ||||||||
|
Equity
in earnings of unconsolidated investments
|
1,417 | 1,102 | 3,221 | 3,028 | ||||||||||||
|
Loss
on debt repurchases
|
(1,483 | ) | - | (1,483 | ) | - | ||||||||||
|
Other
income (expense)
|
1,132 | (5,700 | ) | 1,831 | (5,535 | ) | ||||||||||
|
Income
(loss) before income taxes
|
10,670 | (37,413 | ) | 15,591 | 31,559 | |||||||||||
|
Income
tax (expense) benefit
|
220 | (647 | ) | (800 | ) | (1,842 | ) | |||||||||
|
NET
INCOME (LOSS)
|
10,890 | (38,060 | ) | 14,791 | 29,717 | |||||||||||
|
Less:
Net income to noncontrolling interest
|
888 | 162 | 1,179 | 91 | ||||||||||||
|
NET
INCOME (LOSS) TO TARGA RESOURCES PARTNERS LP
|
$ | 10,002 | $ | (38,222 | ) | $ | 13,612 | $ | 29,626 | |||||||
|
Net
loss attributable to predecessor operations
|
$ | (4,208 | ) | $ | (52,914 | ) | $ | (2,377 | ) | $ | (38,207 | ) | ||||
|
Net
income attributable to general partner
|
2,809 | 294 | 6,765 | 5,524 | ||||||||||||
|
Net
income allocable to limited partners
|
11,401 | 14,398 | 9,224 | 62,309 | ||||||||||||
|
Basic
and diluted net income per limited partner unit
|
$ | 0.23 | $ | 0.31 | $ | 0.19 | $ | 1.35 | ||||||||
|
Basic
and diluted weighted average limited
|
||||||||||||||||
|
partner
units outstanding
|
50,611 | 46,180 | 47,692 | 46,175 | ||||||||||||
|
TARGA
RESOURCES PARTNERS LP
|
||||||||
|
FINANCIAL
SUMMARY (unaudited)
|
||||||||
|
CONSOLIDATED CASH FLOW
INFORMATION
|
||||||||
|
(In
thousands)
|
||||||||
|
Nine Months Ended
September 30,
|
||||||||
|
2009
|
2008
|
|||||||
|
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||
|
Net
income
|
$ | 14,791 | $ | 29,717 | ||||
|
Adjustments
to reconcile net income to net cash
|
||||||||
|
provided
by operating activities:
|
||||||||
|
Depreciation,
amortization and accretion
|
78,534 | 74,739 | ||||||
|
Deferred
income tax expense
|
800 | 1,406 | ||||||
|
Interest
expense on affiliate indebtedness
|
43,414 | 44,400 | ||||||
|
Risk
management activities
|
33,826 | (75,747 | ) | |||||
|
Equity
in earnings of unconsolidated investments, net of
distributions
|
654 | (316 | ) | |||||
|
Loss
on debt repurchases
|
1,483 | - | ||||||
|
Gain
on sale of assets
|
(7 | ) | (4,440 | ) | ||||
|
Changes
in operating assets and liabilities
|
46,428 | 58,821 | ||||||
|
Net
cash provided by operating activities
|
219,923 | 128,580 | ||||||
|
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||
|
Additions
to property, plant and equipment
|
(46,327 | ) | (55,335 | ) | ||||
|
Other,
net
|
82 | 183 | ||||||
|
Net
cash used in investing activities
|
(46,245 | ) | (55,152 | ) | ||||
|
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||
|
Proceeds
from borrowings under credit facility
|
397,618 | 87,500 | ||||||
|
Repayments
on credit facility
|
(374,900 | ) | (323,800 | ) | ||||
|
Proceeds
from issuance of senior notes
|
237,433 | 250,000 | ||||||
|
Repurchases
of senior notes
|
(18,882 | ) | - | |||||
|
Repayment
of affiliated indebtedness
|
(397,500 | ) | - | |||||
|
Proceeds
from equity offerings
|
103,470 | - | ||||||
|
Distributions
to unitholders
|
(79,127 | ) | (64,574 | ) | ||||
|
General
partner contributions
|
2,216 | 8 | ||||||
|
Costs
incurred in connection with public offerings
|
(164 | ) | - | |||||
|
Costs
incurred in connection with financing arrangements
|
(9,558 | ) | (7,079 | ) | ||||
|
Distributions
to noncontrolling interest
|
(1,740 | ) | - | |||||
|
Deemed
Parent distributions
|
(70,086 | ) | (36,183 | ) | ||||
|
Net
cash used in financing activities
|
(211,220 | ) | (94,128 | ) | ||||
|
Net
change in cash and cash equivalents
|
(37,542 | ) | (20,700 | ) | ||||
|
Cash
and cash equivalents, beginning of period
|
95,308 | 64,342 | ||||||
|
Cash
and cash equivalents, end of period
|
$ | 57,766 | $ | 43,642 | ||||