Regency Energy Partners LP ( NYSE: RGP), (“Regency” or the “Partnership”), announced today its financial results for the third quarter ended September 30, 2012.
Adjusted EBITDA increased to $114 million in the third quarter of 2012, compared to $112 million in the third quarter of 2011. The increase in adjusted EBITDA was primarily due to an increase in adjusted total segment margin primarily related to volume growth in the gathering and processing segment, partially offset by higher operations and maintenance expenses.
In the third quarter of 2012, Regency generated $68 million in cash available for distribution, compared to $73 million in the third quarter of 2011. This decrease was primarily due to higher maintenance capital expenditures in the third quarter of 2012 compared to the prior period. Regency had a net loss of $2 million for the three months ended September 30, 2012, compared to the net income of $30 million for the three months ended September 30, 2011, primarily due to non-cash valuation adjustments recorded in each respective period.
“Volumes continued to increase in the third quarter, primarily in south and west Texas, as well as in north Louisiana,” said Mike Bradley, president and chief executive officer of Regency. “Results were impacted by temporary operational issues and unplanned outages in our gathering and processing segment and in our Lone Star Joint Venture; however we did see an uptick in our contract services business which has begun to benefit from growth in wet-gas regions.”“Looking ahead, we remain excited about our portfolio of organic growth projects. We believe the impact of these projects coming online will provide Regency with additional earnings and volume growth throughout 2013,” said Bradley. REVIEW OF SEGMENT PERFORMANCE Adjusted total segment margin increased to $116 million for the third quarter of 2012, compared to $111 million for the third quarter of 2011.