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Regency Energy Partners LP (
NYSE: RGP), (“Regency” or the “Partnership”), announced today its financial results for the second-quarter ended June 30, 2013.
The results presented herein have been retrospectively adjusted to combine Regency’s results with the results of Southern Union Gathering Company (“SUGS”) beginning March 26, 2012, due to the as-if pooling accounting treatment required for an acquisition between commonly controlled entities.
For the second quarter of 2013, adjusted EBITDA was $155 million, compared to $138 million in the second quarter of 2012. This increase was primarily due to volume growth in the Gathering and Processing segment, driven by strong drilling activity in south and west Texas, and in north Louisiana.
Regency generated $101 million in distributable cash flow (“DCF”) for the second quarter of 2013, compared to $72 million in the second quarter of 2012. DCF for 2012 has been adjusted to remove the historical SUGS results, and DCF for 2013 includes only 2 months of contribution from SUGS.
For the second quarter of 2013, Regency reported net income of $10 million, compared to net income of $27 million for the second quarter of 2012. The decrease in net income was primarily related to a $16 million increase in O&M expense, a $16 million decrease in the non-cash gain (loss) recognized on the mark-to-market of the embedded derivative related to the Series A Preferred Units and a $13 million increase in interest expense, partially offset by a $19 million increase in total segment margin and a $7 million decrease in G&A expense.
“During the second quarter of 2013, gathering and processing volumes increased 18 percent, and NGL transportation volumes grew 22 percent, driven by further ramp up of our growth projects completed in the fourth and first quarters,” said Mike Bradley, president and chief executive officer of Regency. "In addition, revenue generating horsepower increased 14 percent as we continued to see strong demand for third-party compression services.”