Crestwood Midstream Partners LP - FORM 8-K - EX-99.1 - January 14, 2011

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8-K - FORM 8-K - Crestwood Midstream Partners LPh78834e8vk.htm
EX-99.2 - EX-99.2 - Crestwood Midstream Partners LPh78834exv99w2.htm
EX-99.3 - EX-99.3 - Crestwood Midstream Partners LPh78834exv99w3.htm
EX-23.1 - EX-23.1 - Crestwood Midstream Partners LPh78834exv23w1.htm
Exhibit 99.1
Item 6. Selected Financial Data
     The information in this section should be read in conjunction with Items 7 and 8 of this Current Report. In January 2010 we closed the Alliance Acquisition, which was comprised of the Alliance Midstream Assets originally acquired by Quicksilver in August 2008. Due to Quicksilver’s control of the Partnership through its ownership of the General Partner at the time of the Alliance Acquisition, the Alliance Acquisition is considered a transfer of net assets between entities under common control. As a result, the Partnership is required to revise its financial statements to include the financial results and operations of the Alliance Midstream Assets. As such, the selected financial data gives retroactive effect to the Alliance Acquisition as if the Partnership owned the Alliance Midstream Assets since August 8, 2008, the date which Quicksilver acquired the Alliance Midstream Assets. The following table includes selected financial data as of and for each of the five years in the period ended December 31, 2009.
                                         
    Year Ended December 31,
    2009   2008   2007   2006   2005
Operating Results Data: (1)
                                        
(In thousands, except per unit and volume data)
                                        
Total revenues
   $ 95,881     $ 76,084     $ 35,695     $ 13,918     $ 4,868  
Total operating expenses
     52,473       38,933       22,513       11,340       3,315  
Operating income
     43,408       37,151       13,182       2,578       1,553  
Income before income taxes
     34,890       28,725       9,161       2,591       1,553  
Net income from continuing operations
     34,491       28,472       8,848       2,456       1,553  
Loss from discontinued operations
     (1,992 )     (2,330 )     (592 )     (35 )     —  
Net income
     32,499       26,142       8,256       2,421       1,553  
 
                                        
Diluted earnings per unit:
                                        
From continuing operations per unit
   $ 1.25     $ 1.03     $ 0.22       n/a       n/a  
Net earnings per unit
   $ 1.18     $ 0.95     $ 0.20       n/a       n/a  
Cash distributions per unit (2)
   $ 1.52     $ 1.39     $ 0.47       n/a       n/a  
 
Net cash provided by (used in):
                                        
Operating activities
   $ 68,949     $ 52,572     $ 14,949     $ 6,445     $ 2,304  
Investing activities
     (54,818 )     (148,079 )     (73,797 )     (78,360 )     (43,707 )
Financing activities
     (13,688 )     94,685       57,176       74,712       41,403  
 
                                        
Volumes gathered (MMcf)
     93,955       70,617       34,284       14,263       3,561  
Volumes processed (MMcf)
     54,386       56,225       30,802       13,496       3,561  
 
                                        
Adjusted gross margin (3) (5) (6)
   $ 64,237     $ 50,282     $ 20,884     $ 5,506     $ 2,167  
EBITDA (4) (5) (6)
     64,238       50,293       21,120       5,519       2,167  
 
                                        
Financial Condition Information: (1)
                                        
Property, plant and equipment, net
   $ 482,497     $ 441,863     $ 254,555     $ 128,456     $ 53,783  
Total assets
     487,624       502,606       278,410       134,623       53,783  
Long-term debt
     125,400       174,900       5,000       —       —  
Other long-term obligations (7)
     62,162       123,928       118,306       503       29  
Partners’ capital
     284,837       115,208       110,200       118,652       48,949  
 
(1)   Financial information has been revised to include the results of the Alliance Midstream Assets and to reflect the retroactive presentation of revenues, expenses, assets and liabilities of a gas gathering system in Hill County, Texas, which we refer to as the HCDS, as discontinued operations for 2009 and prior periods.
 
(2)   Reported amounts include the fourth quarter distribution on all common units paid in the first quarter of the subsequent year.

 

 

(3)   Defined as total revenues less operations and maintenance expense and general and administrative expense. Additional information regarding Adjusted Gross Margin, including a reconciliation of Adjusted Gross Margin to Net Income as determined in accordance with GAAP, is included in “Results of Operations” in Item 7 of this Current Report.
 
(4)   Defined as net income plus income tax provision, interest expense, and depreciation and accretion expense. Additional information regarding EBITDA, including a reconciliation of EBITDA to Net Income as determined in accordance with GAAP, is included in “Results of Operations” in Item 7 of this Current Report.
 
(5)   For 2006, adjusted gross margin and EBITDA of $5.5 million less $3.1 million in depreciation and accretion expense equals reported net income of $2.4 million.
 
(6)   For 2005, adjusted gross margin and EBITDA of $2.2 million less $0.6 million in depreciation and accretion expense equals reported net income of $1.6 million.
 
(7)   Other long-term obligations include the subordinated note payable to Quicksilver, repurchase obligations to Quicksilver and asset retirement obligations.

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