A Closer Look At Regency Energy Partners' Distributable Cash Flow As Of 1Q 2012

By Ron Hiram:Revenues in 1Q 2012 declined 2.9% vs. the prior quarter and increased 10.5% vs. 1Q 2011 (by comparison, revenues in 1Q 2011 increased 6.3% vs. 4Q 2010 and were up 19% over 1Q 2010). Earnings before interest expense, depreciation & amortization and income taxes (EBITDA) in 1Q 2012 decreased 8.7% vs. the prior quarter and were up 24% over the prior year period.

By Ron Hiram: In an article titled Distributable Cash Flow ("DCF") I present the definition of DCF used by Kinder Morgan Energy Partners LP (KMP) and provide a comparison to definitions used by other master limited partnerships ("MLPs").

By Ron Hiram:In an article titled Distributable Cash Flow (DCF) I present the definition of DCF used by Regency Energy Partners LP (RGP) and provide a comparison to definitions used by other MLPs. Using RGP's definition, DCF for the 9 month period ending 9/30/11 was $1.43, down from $1.53 in the comparable prior year period.

By Ron Hiram:On November 8, 2012, Regency Energy Partners LP (RGP) reported results of operations for 3Q 2012. Revenues, operating income, net income and earnings before interest, depreciation & amortization and income tax expenses (EBITDA) for 3Q12, 3Q11 and for the trailing 12 months ("TTM") are summarized in Table 1: (click to enlarge)

By Ron Hiram:Revenues in 1Q 2012 increased 3.8% vs. the prior quarter and 19.8% vs. 1Q 2011 (by comparison, revenues in 1Q 2011 increased 6.4% vs. 4Q 2010 and were up 25.6% over 1Q 2010). Earnings before interest expense, depreciation & amortization and income taxes (EBITDA) in 1Q 2012 decreased 1% vs. the prior quarter and were up 17.2% over the prior year period. However, adjusted EBITDA in 1Q12 was 18% above the $400 million mid-point of the guidance provided by management for that quarter.

By Ron Hiram:In an article titled "Distributable Cash Flow ("DCF") I present the definition of DCF used by Energy Transfer Partners, L.P. (ETP) and provide a comparison to definitions used by other MLPs.

By Ron Hiram:In an article titled Distributable Cash Flow ("DCF") I present the definition of DCF used by Kinder Morgan Energy Partners LP (KMP) and provide a comparison to definitions used by other master limited partnerships ("MLPs").

By Ron Hiram:In an article titled "Distributable Cash Flow (DCF)" I presented the definition of DCF used by Regency Energy Partners LP (RGP) and provide a comparison to definitions used by other MLPs. Using RGP's definition, DCF for 2011 was $1.96, down from $2.05 in 2010. How do these figures compare with what I call sustainable DCF for these periods?