Regency Energy Partners LP (
), (“Regency” or the “Partnership”), announced today its financial results for the third-quarter ended September 30, 2013.
The 2012 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 third quarter of 2013, adjusted EBITDA increased 23% to $172 million, compared to $140 million in the third 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; as well as volume growth at Lone Star.
Regency generated $115 million in distributable cash flow (“DCF”) for the third quarter of 2013, compared to $69 million in the third quarter of 2012. DCF for 2012 excludes any impact related to the historical SUGS results.
For the third quarter of 2013, Regency reported net income of $39 million, compared to a net loss of $2 million for the third quarter of 2012. The increase in net income was primarily related to a $30 million increase in total segment margin and a $16 million increase in income from unconsolidated affiliates for the reasons discussed above.
“Regency’s strong third quarter performance was driven by the continued ramp up of our growth projects, which led to a 12% increase in gathering and processing volumes, and a 30% increase in NGL transportation volumes,” said Mike Bradley, president and chief executive officer of Regency. "In addition, we saw a 16% increase in revenue generating horsepower as demand remained strong for third-party compression services.”
REVIEW OF SEGMENT PERFORMANCE
Adjusted total segment margin increased 17% to $194 million for the third quarter of 2013, compared to $166 million for the third quarter of 2012.