Regency Energy Partners g y gy FourthQuarter Earnings Release March 2, 2009
Haynesville Joint Venture Overview
Joint Venture Structure Regency Management is forming a partnership with select investors to co- develop the Haynesville Expansion Project JV Ownership % RIGS1 38% Regency 400 million contribution value on 653 million)…
Transaction Overview Transaction Details f Regency Haynesville Intrastate Gas LLC, a subsidiary of Regency Energy Partners LP Parties f General Electric Capital Corporation, an affiliate of GE Energy Financial Services (GE EFS) f…
Current Transportation (RIGS) Asset Overview Regency will contribute the Regency Intrastate Gas System (RIGS), a 320-mile pipeline, to the Joint Venture, valued at approximately 400 million RIGS Details f Petrohawk f Exco f Union…
Joint Venture Benefits By partnering with GE EFS and Alinda, Regency has secured financing for the Haynesville Expansion Project under terms accretive to our unitholders in 2010 and beyond Key y Highlights g g f Allows Regency to…
Haynesville Expansion Project
Project Overview Regency is significantly expanding RIGS to capitalize on development in the Haynesville Shale f Approximately 925,000 MMBtu/d of capacity, or 84%, has been contracted to date; the remaining capacity is currently…
Project Overview - Pipeline Interconnects f Project will expand four major interconnects: Texas Gas, Trunkline, ANR and Columbia Gulf f Producers are responsible for securing downstream markets or transportation at interconnects 9
Project Overview - Capacity Analysis Regencys expansion pipeline will provide an initial takeaway option for Haynesville producers; however, additional takeaway capacity will be required in the future 16 16 North Louisiana to…
Project Overview Project Costs Total cost of the project is projected to be 653 million Expected Cost Project Description ( millions) Pipeline Bienville Loop 28 miles of 36 pipeline 118 Elm Grove Pipeline 23 miles of 36 36…
Commercial Update Haynesville Well Activity Approximately 2.9 million acres have been leased in the Haynesville area and initial well results are positive 12 Source: Louisiana Department of Natural Resources and public and…
Commercial Update - Haynesville Production Results Company Headlines Estimated Ultimate Recovery (EUR) of 7.5 Bcfe per well Recently announced IP results on six new wells averaging 14.5 MMcfe/d, including two wells that experienced…
Construction Update - Timeline Approximate Project Construction Timeline Aug08 Sep08 Oct08 Nov08 Dec08 Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09 Sep09 Oct09 Nov09 Dec09 Surveyy Environmental Permits LA Department of Natural…
Financial Results
Strong Year-Over-Year Performance Total Revenue Adjusted Total Segment Margin 2,000 1,864 500 441 1 500 1,500 400 in millions 1,190 in millions 300 1,000 897 229 200 154 500 100 0 0 2006 2007 2008 2006 2007 2008…
Financial Overview Fourth-Quarter 2008
Consolidated Operating Results Regency Energy Partners LP Consolidated Statements of Operations ( in thousands) Three Months Ended December 31, Year to Date December 31, 2008 2007 2008 2007 REVENUES Gas sales 203,888 206,321…
Gathering and Processing Segment Three Months Ended December 31, Year to Date December 31, ( in thousands) 2008 2007 2008 2007 Gathering and Processing Segment Financial data Segment margin (1)(2) 69,174 39,294 256,380 154,761…
Transportation Segment Three Months Ended December 31, Year to Date December 31, ( in thousands) 2008 2007 2008 2007 Transportation Segment Financial data Segment margin (1) 19,946 16,362 78,161 59,332 Adjusted segment margin…
Contract Compression Segment Three Months Ended December 31, Year to Date December 31, ( in thousands) 2008 2007 2008 2007 Contract Compression Segment Financial data Segment margin (1) 39 988 39,988 - 125 503 125,503 - At…
Liquidity Update Liquidity Update ( in millions) Current Availability on Revolver 42 Estimated Haynesville Spending Through mid-March (14) Estimated JV Reimbursement of Capex Assuming Mid-March Close 90 Subtotal 118 Plus New…
Commodity Price Risk Management Only 3% of Regencys estimated 2009 Adjusted Segment Margin is subject to commodity price fluctuations Estimated 2009 Adjusted Segment Margin Fee Based Margins Fee-Based 68% Hedged Commodity…
Commodity Price Risk Management On average, Regencys executed hedge pricing increases over time, which translates into built-in growth in adjusted segment margin Executed Hedges by Product: 2009 2010 Bbl/d Price Bbl/d Price…
Non-GAAP Non GAAP Reconciliations
Non-GAAP Reconciliation Reconciliation of Non-GAAP Measures to GAAP Measure Three Months Ended December 31, Year to Date December 31, ( in thousands) 2008 2007 2006 2008 2007 2006 Net income (loss) 31,789 4,555 6,587 101,016…
Non-GAAP Reconciliation Non-GAAP Adjusted Segment Margin to GAAP Net Income (Loss) Three Months Ended December 31, Year to Date December 31, ( in thousands) 2008 2007 2006 2008 2007 2006 Net income (loss) 31,789 4,555 6,587 101,016…
Non-GAAP Reconciliation Reconciliation of cash available for distribution to net cash flows provided by operating activities and to net income Three Months Ended ( in thousands) December 31, 2008 Net cash flows provided by operating…
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