Duncan Energy Partners Reports Second Quarter 2011 Results
Duncan Energy Partners L.P. (the “Partnership”) (NYSE:DEP) today announced its financial and operating results for the three and six months ended June 30, 2011. Net income attributable to Duncan Energy Partners for the second quarter of 2011 was $22.5 million, or $0.39 per common unit on a fully diluted basis, compared to $23.3 million, or $0.40 per common unit on a fully diluted basis, for the second quarter of 2010.
The Partnership’s distributable cash flow was $33.8 million for the second quarter of 2011 compared to $32.8 million for the second quarter of 2010. On July 15, 2011, the Board of Directors of Duncan Energy Partners’ general partner declared an increase in the Partnership’s quarterly cash distribution rate with respect to the second quarter of 2011 to $0.46 per common unit, or $1.84 per unit on an annualized basis. This is a 2.2 percent increase over the $0.45 per unit that was paid with respect to the second quarter of 2010. The Partnership’s distributable cash flow for the second quarter of 2011 provided approximately 1.26 times coverage of the cash distribution that will be paid on August 10, 2011 to unitholders of record on July 29, 2011. The Partnership retained approximately $7.0 million of distributable cash flow in the second quarter of 2011 that can be used to fund growth capital projects. Distributable cash flow is a non-generally accepted accounting principle (“non-GAAP”) financial liquidity 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.
“Duncan Energy reported solid results again this quarter with each of our business segments reporting increases in gross operating margin for the second quarter of 2011 compared to the same quarter in 2010,” said W. Randall Fowler, president and chief executive officer of the general partner of Duncan Energy Partners. “We continue to benefit from increased natural gas and NGL pipeline and fractionation volumes from the Eagle Ford Shale play in South Texas. Cash flow from our fee-based assets enabled us to increase the cash distribution to our partners for the 11 th consecutive quarter while retaining cash to invest in capital projects such as the Haynesville Extension Pipeline project.”
Fowler added, “Completion of the Haynesville Extension project is on schedule. We plan to commission the pipeline in stages beginning in early August with an anticipated start up in late September. Based on this schedule we expect to begin collecting monthly demand charges on October 1, 2011.”
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