Skip to main contentACQUISITION OF FRONTSTREET HUGOTON LLC AND CDM RESOURCE MANAGEMENT LTD – Regency Energy Partners Lp Investor Presentation | Shale Experts
Acquisition of FrontStreet Hugoton, LLC and CDM Resource Management, Ltd. December 12, 2007 0
FrontStreet Hugoton, LLC Transaction Overview 2
Executing on our Growth Strategy Acquisition of FrontStreet Hugoton LLC will be immediately accretive to cash available for distribution Key Operating Statistics X 5 compressor stations X 1,700 miles of pipe X Unique rate structure…
Transaction Overview Regency has executed a definitive agreement to acquire CDM Resource Management, Ltd. (CDM) X CDMs compression assets will broaden Regencys service offerings and provide synergies with existing operations X Purchase…
Acquisition Rationale The CDM acquisition provides many strategic advantages to Regency X Source of stable, fee-based cash flows X Provides synergies with Regencys existing operations X Provides a visible source of long-term organic…
Operational Overview 7
Midstream Compression Usage Compression is a must-run service required at each phase of the natural gas production and transportation cycle Gathering & Field / Wellhead Pipelines & Storage Distribution Processing X Enable…
CDM Overview CDM provides customers with turn-key natural gas contract compression services X CDM focuses on contract compression services versus rental services Provides producers with comprehensive solutions for field- wide…
CDM Horsepower Growth CDM has seen impressive year-over-year growth in horsepower CDM Year-End Horsepower Capacity 600,000 540,326 500,000 .4% R 38 CAG 429,777 400,000 Horsepower 293,120 300,000 220,983 200,000…
Financial Overview 11
Financing Plan X Sources of funds are expected to be as follows: Sources ( mm) Use of Proceeds ( mm) 446 Funding under expanded financing facility 450 Cash to CDM Ownership Group and 205 Issuance of 1 year deferred pay units…
Organic Growth Historical Capital Expenditures 120 107.1 104.6 100 73.0 80 (mm) 60 40 31.2 20 0 2004 2005 2006 YTD 9/30/2007 1. Period Includes only first nine months of 2007 13
2007 Estimated Margin Contribution Acquisition of Hugoton and CDM shifts Regencys margin towards fee-based income Regency Pro Forma with Regency Pro Forma with CDM 1 Regency Base Business Hugoton FrontStreet1 and Hugoton…
Pro-forma Capital Structure Debt will be 52% of capital after closing of CDM and Hugoton acquisitions Post-Closing ( Millions) Regency1 Hugoton2 CDM Proforma Total Debt 456 12 450 918 Partner's Capital 505 127 205 837 Total…
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