Dallas-based Regency Energy Partners LP saw its gathering and processing volumes climb during the third quarter while throughput on its Regency Intrastate Gas System (RIGS) more than doubled.
Throughput volumes for the partnership’s gathering and processing segment averaged 950,583 MMBtu/d of natural gas, and processed natural gas liquids (NGL) averaged 26,930 b/d for the third quarter. In the year-ago period throughput averaged 932,830 MMBtu/d of natural gas, and processed NGLs averaged 20,334 b/d.
Total combined throughput volumes for RIGS averaged 1,520,000 MMBtu/d of natural gas for the third quarter, compared to an average of 736,000 MMBtu/d for the third quarter of 2009. Throughput volumes for the Midcontinent Express Pipeline joint venture with Kinder Morgan Energy Partners LP averaged 1,366,000 MMBtu/d of natural gas for the third quarter, compared to an average of 995,000 MMBtu/d for the third quarter of 2009.
For the third quarter the partnership recorded net income of $8 million, compared to a net loss of $11 million for the third quarter of 2009.
The variance was primarily attributable to a $21 million increase in other income and deductions, net, primarily related to a noncash value change associated with the embedded derivative within the Series A Convertible Redeemable Preferred Units; and an $18 million increase in income from unconsolidated subsidiaries primarily due to the acquisition of a 49.9% ownership interest in the Midcontinent Express Pipeline in May and the completion of the Haynesville Expansion Project and Red River Lateral in early 2010. These items were offset by an $18 million decrease in net unrealized gain from derivatives related to a mark-to-market change in the value of commodity derivatives.
Regency’s adjusted earnings before interest, taxes, depreciation and amortization increased 77% to $90 million for the third quarter, compared to $51 million for the third quarter of 2009.
The partnership said it is increasing projected 2010 organic growth capital expenditures from $245 million to $259 million, primarily due to an increase of $14 million related to additional growth in its contract services segment.
Michael J. Bradley has been appointed president and CEO of Regency effective Nov. 22. Bradley, an industry veteran with nearly 30 years of natural gas pipeline and midstream experience, has been an independent director of Regency since January 2008. Current CEO Byron Kelley is retiring as an officer and director effective the same day but will be a consultant to Regency for three years.
Regency also appointed Thomas E. Long as executive vice president and CFO, effective Dec.1. Long will also assume the role of principal financial officer for regulatory purposes. Long also joins Regency from Matrix Service Co., where he has served as vice president and CFO since 2008.
The partnership also appointed Jim Holotik executive vice president and chief commercial officer. Holotik joins Regency from Energy Transfer Partners LP where he most recently led its merger and acquisition efforts and also served as president of Transwestern Pipeline Co. LLC, a subsidiary of Energy Transfer Partners.
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