Regency Energy Partners LP ( NYSE: RGP), (“Regency” or the “Partnership”), announced today its financial results for the first-quarter ended March 31, 2014.
The results presented herein have been retrospectively adjusted to combine Regency’s results with the results of Southern Union Gathering Company (“SUGS”) for the three months ended March 31, 2013, due to the as-if pooling accounting treatment required for an acquisition between commonly controlled entities.
For first quarter 2014, adjusted EBITDA increased 71 percent to $205 million, compared to $120 million in 2013, primarily due to volume growth in the gathering and processing segment, which includes the addition of 11 days of PVR operations, volume growth at the Lone Star Joint Venture, as well as an increase in revenue generating horsepower in the contract services segment.
For first quarter 2014, Regency generated $182 million in distributable cash flow (“DCF”), compared to $101 million for first quarter 2013. DCF for the first quarter of 2014 has been adjusted to include a full quarter DCF contribution related to the PVR acquisition.Net income attributable to Regency increased to $9 million for first quarter 2014, compared to a net loss of $29 million for first quarter 2013. This increase was primarily due to an increase in total segment margin and an increase in income from unconsolidated affiliates; partially offset by increased depreciation, depletion and amortization, increased interest expense, and increased operation and maintenance expense. “Regency’s legacy assets experienced strong performance in the first quarter, where we saw significant volume growth in our gathering and processing and NGL services businesses, as well as a strong increase in revenue generating horsepower for our contract compression business,” said Mike Bradley, president and chief executive officer of Regency. “This growth was driven by the ramp up of our growth projects completed last year, along with increased drilling activity in the majority of our operating regions.”