Regency Energy Partners LP reported consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported revenues of $349 million compared to $358 million a year ago. Operating income was $9 million compared to operating income of $10 million a year ago. Loss before income taxes was $7 million compared to income before income taxes was $29 million a year ago. Net loss attributable to the company was $5 million or $0.06 per basic and diluted share compared to net income attributable to the company of $29 million or $0.14 per basic and diluted share a year ago. EBITDA was $78 million compared to $110 million a year ago. Adjusted EBITDA was $127 million compared to $134 million a year ago. Net cash flows provided by operating activities were $67 million compared to $56 million a year ago. Regency incurred $7 million of maintenance capital expenditures. For the quarter, NGL production averaged 43,000 barrels per day for first quarter of 2013, which was a 14% increase over the prior period. The company provided operating and capital expenditures guidance for the full year of 2013. The company expects to invest approximately $685 million in growth capital expenditures. In addition, the company expects to invest approximately $45 million in maintenance capital expenditures in 2013, including its proportionate share related to joint ventures.

Regency Energy Partners LP announced a private offering of $600 million of its senior notes due 2023. Regency Energy Finance Corp. will serve as co-issuer of the notes. The company intends to use the net proceeds from the offering to fund the cash portion of the consideration for its previously announced acquisition of Southern Union Gathering Company, LLC from Southern Union Company, a jointly owned affiliate of Energy Transfer Equity, L.P. and Energy Transfer Partners, L.P. If the SUGS acquisition does not close on or prior to September 1, 2013, or if the contribution agreement relating to the SUGS Acquisition is terminated at any time prior to the consummation thereof, the company will be required to redeem all of the notes in cash at a redemption price equal to 100% of the aggregate principal amount of the notes, plus accrued and unpaid interest to the date of redemption.

Regency Energy Partners LP, Q1 2013 Earnings Call, May 09, 2013