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Regency Energy Partners LP (
NYSE: RGP), (“Regency” or the “Partnership”), announced today its financial results for the fourth-quarter and full-year ended December 31, 2012.
For full-year 2012, adjusted EBITDA increased by 14 percent to $480 million compared to $422 million in 2011. For fourth-quarter 2012, adjusted EBITDA increased to $116 million compared to $115 million for fourth-quarter 2011. These increases in adjusted EBITDA were primarily due to volume growth in the gathering and processing segment, partially offset by higher operations and maintenance expenses. The full-year increase was also partly due to a full-year contribution from the Lone Star Joint Venture in 2012, compared to a partial-year contribution in 2011.
For the year-ended December 31, 2012, Regency generated $310 million in cash available for distribution, compared to $285 million for full-year 2011, primarily due to the same items set forth above. For fourth-quarter 2012, Regency generated $68 million in cash available for distribution, compared to $82 million in the fourth-quarter of 2011. This decrease was primarily due to lower proceeds from asset sales in the fourth-quarter of 2012 compared to the prior period.
Net income decreased to $48 million for the full-year ended December 31, 2012, from $74 million for the full-year ended December 31, 2011. These decreases were primarily due to non-cash valuation adjustments recorded in each respective period. For fourth-quarter 2012, Regency reported a net loss of $9 million compared to a net income of $14 million for fourth-quarter 2011.
“In 2012, robust drilling activity in south and west Texas and in north Louisiana contributed to a 20 percent increase in gathering and processing volumes, and we also saw an upswing in revenue generating horsepower in our contract compression business,” said Mike Bradley, president and chief executive officer of Regency. “In addition, we continued construction on major organic growth projects in several of our liquids-rich operating regions.”