GOING BEYOND Regency Energy Partners LP Second Quarter Earnings Release August 4, 4 2011 www.regencyenergy.com
SecondQuarter Highlights Key Highlights Increased adjusted EBITDA by 40% over the second quarter of 2010 Financial Performance Increased secondquarter cash distribution to 0.45 per outstanding common unit Completed public…
Fundamentals: Drilling Activity Total U.S. land rig count increased 22% from Q2 2010 to Q2 2011 Largest increases from Q2 2010 to Q2 2011 occurred in the Permian Basin in west Texas and the Granite Wash in Midcontinent U.S.…
Fundamentals: Commodity Prices August NYMEX contract settled at 4.37 per MMbtu WTI crude averaged over 100 per barrel for the second quarter of 2011 Gas Price Trends Crude/NGL Price Trends 5.25 110.00 4.75 90.00 4.25…
Fundamentals: Commodity Prices High NGL demand and lower natural gas pricing have driven frac spreads to an alltime high Domestic NGL production is expected to surpass 2.2 million Bbls/d in 2012 Historical NGL Frac Spreads…
Second Quarter Performance 7
SecondQuarter Performance Comparing the second quarter of 2011 to the second quarter of 2010, adjusted EBITDA increased approximately 40% Adjusted EBITDA1 120 102 103 100 90 92 80 74 n millions 62 60 in…
Gathering and Processing Segment Volumes increased approximately 6% from the second quarter of 2010 to the second quarter of 2011, primarily driven by growth in the west Texas and south Texas regions Gathering and Processing…
Joint Ventures Segment Joint Ventures adjusted EBITDA increased to 55 million for the second quarter of 2011, compared to 25 million for the second quarter of 2010, primarily due to the acquisitions of the MEP Joint Venture and the…
Contract Compression & Contract Treating Segments Contract Compression Segment Going forward, to enhance our service to our external customers, our focus will be on compression that is owned and operated by our Contract Compression…
Commodity Price Risk Management We utilize a comprehensive hedging program to mitigate exposure NGL Equity Production vs. Hedged 5,000 4,000 bl/d 3,000 65% 55% 46% 38% Bb 2,000 77% 19% 1,000 10% - Q3 2011 Q4 2011 Q1…
Commodity Price Risk Management DCF Sensitivity to Commodity Price Changes 2011 Change in WTI Price (/Bbl) Change in Natural Gas Price Decrease 10.00 Flat Increase 10.00 /MMbtu) Decrease 1.00 (4)M (1)M 2M Flat (3)M (…
Diverse Portfolio Our target is to achieve over 80% of feebased adjusted segment margin 2009 Adjusted Segment Margin 2009 Adjusted Segment Margin 2010 Adjusted Segment Margin 2010 Adjusted Segment Margin 2011E Adjusted Segment…
Liquidity Position In May 2011, Regency issued 500 million of tenyear senior notes at 6.5% to refinance revolver borrowings used primarily to fund its Lone Star Joint Venture acquisition Capitalization ( in millions) 3/31/2011…
Q&A
Appendix
NonGAAP Reconciliation Three Months Ended June 30, 2011 March 31, 2011 December 31, 2010 September 30, 2010 June 30, 2010 March 31, 2010 ( in thousands) Net income (loss) 14,837 14,305 (8,923) 7,846 (9,391) (450) Add (deduct):…
NonGAAP Reconciliation Three Months Ended (1) (1) June 30, 2011 March 31, 2011 December 31, 2010 September 30, 2010 June 30, 2010 March 31, 2010 ( in thousands)) Net income (loss) 14,837 14,305 (8,923) 7,846 (9,391) (450) Add…
NonGAAP Reconciliation Three Months Ended June 30, 2011 ( in thousands) Net cash flows provided by operating activities 72,136 Add (deduct): - Depreciation and amortization, including debt issuance cost amortization (41,938)…
Gathering & Processing Segment Three Month Ended June 30, (1) 2011 2010 ( in thousands) Gathering and Processing Segment Financial data: (1) Segment margin 50,495 49,568 (1) Adjusted segment margin 52,642 55,162 Operating…
Contract Compression Segment Three Months Ended June 30, 2011 2010 ( in thousands) Contract Compression Segment Financial data: Segment margin 36,973 37,814 Operating data: Revenue generating horsepower 757,572 727,296 23
Contract Treating Segment Three Month Ended June 30, (1) 2011 2010 ( in i thousands) th d ) Contract Treating Segment Financial data: Segment margin 7,701 - Operating data: R Revenue generating ti GPM 3 368 3,368 - (1)…
Joint Ventures Segment The following provides key performance measures for 100% of the Haynesville Joint Venture Three Months Ended June 30, 2011 2010 ( in thousands) Joint Ventures Segment - Haynesville Joint Venture Financial…
Joint Ventures Segment The following provides key performance measures for 100% of the Lone Star Joint Venture From May 2, 2011 (Initial Acquisition D t ) tto JJune 30 Date) 30, 2011 ( in thousands) Joint Ventures Segment -…
Joint Ventures Segment Th The ffollowing ll i provides id a reconciliation ili ti off N Non-GAAP GAAP to t GAAP measures for f 100% off th the Haynesville Joint Venture Three Months Ended June 30, 2011 June 30, 2010 ( in…
Joint Ventures Segment The following provides a reconciliation of Non-GAAP to GAAP measures for 100% of the Lone Star Joint Venture From May 2, 2011 (Initial Acquisition Date) to June 30, 2011 ( in thousands) Net income ,…
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