Regency Energy Partners LP ( RGNC)

Q3 2010 Earnings Call Transcript

November 9, 2010 11:00 am ET


Shannon Ming – SVP, Finance & IR

Byron Kelley – President & CEO


John Edwards – Morgan Keegan

Lenny Brecken – Brecken Capital

Caca Carusa [ph] – Barclays Capital



Good day, ladies and gentlemen, and welcome to the Third Quarter 2010 Regency Energy Partners LP Earnings Conference Call. My name is Dianne and I’ll be the operator for today. At this time, all participants’ lines are muted and after the presentation, we’ll open up to conduct the question-and-answer session. (Operator instructions) As a reminder, this conference is being recorded for replay purposes.

Now, I would like to turn the call over to your host for today, Ms. Shannon Ming, Senior Vice President of Finance and Investor Relations. Please proceed.

Shannon Ming

Good morning, everyone, and welcome to today’s call. This morning, we announced key management changes and we’ll first discuss those changes. In addition, we will cover Regency’s performance in the third quarter and review industry trends and fundamentals. Following our prepared remarks, Regency will open the call to participants for any questions. You may access the earnings release and presentation used on today’s call through Regency’s Web site at

Please note that today’s call is being recorded and is also being broadcast live over the Internet on the Regency corporate Web site. An archive of the webcast and presentation will be available on the corporate Web site following today’s call.

Slide #2 of the presentation describes our use of forward-looking statements, and lists some of the risk factors that may affect actual results. Also included in the presentation today are various non-GAAP measures that have been reconciled back to GAAP or generally accepted accounting principles. These schedules are at the end of the presentation beginning on Slide 22.

With that, I’ll turn the call over to Byron Kelley, our President and CEO.

Byron Kelley

Well, thank you, Shannon, and let me add my welcome to each of you. We appreciate you joining us this morning. As you have seen from our announcements earlier this morning, in addition to reporting excellent third quarter performance from our business units, we announced a CEO transition at Regency. So I’ll begin this morning by providing you with more details related to this transition as well as some additional information on the completion of executive management’s team that will be leading the company going forward.

First, I did announce earlier today my retirement as President and CEO of the company. I’ll have to say that by serving in this role has been a tremendous opportunity for me and a tremendous experience, as I have had the privilege to lead a truly exceptional team during the period of considerable growth for the company.

I am extremely proud to have been associated with all of the Regency employees, with our Board of Directors and with the general partners of Regency and I’m very pleased with the successes of the organization over the past several years.

As you know or most of you know, I have been commuting from Houston to Dallas for nearly three years, and for personal reasons the time has come for me to return to Houston full time to provide additional support to my family.

Stepping down from my leadership role at Regency was not an easy decision on my part, but it is the right decision for my family. However, I won’t tell you that my association with Regency does not end, as I have been asked by the Board and have agreed and gladly agreed to serve in a consulting capacity for the company over the next three years.

I’m very much looking forward to supporting the Regency executive team, who I am confident will continue to lead Regency to new heights going forward. So I would like to turn our attention to the newer format and I am pleased to announce the election of Mike Bradley as my successor.

Mike will be taking the helm at Regency beginning on November 22. He joins us from Matrix Service Company and he is an industry veteran with 30 years of experience in the midstream sector. In addition to Mike’s service as President and CEO of Matrix, he has previously held leadership positions at DCP Midstream Partners and Duke Energy Field Services.

Mike also brings a very unique set of skills to the role as President and CEO, as he served on our Board of Directors for the past three years. As such, he has an intimate knowledge of our company and intimate knowledge of our goals and particular our goal of reaching investment grade metrics. In a new role, Mike will provide immediate continuity allowing Regency to continue on its path of rapid growth. Simply put, Mike has provided great support and advised me as a board member during my tenure. He has a strong commitment to the success of Regency and I can’t think of anyone more capable to lead Regency going forward.

I am also happy to announce that we’ve concluded our CFO search with the election of Tom Long as Executive Vice President and Chief Financial Officer of Regency. Tom also comes to us from Matrix where he served as CFO for more than three years and prior to joining Matrix, Long was Vice President and Chief financial Officer at DC Midstream where he was responsible for all financial aspects of the company since its formation in December of 2005 and previously that time, he served on several executive positions with subsidiaries of Duke Energy Field Services.

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