Natural gas distributor Regency Energy Partners LP on Monday said its first-quarter profit surged, driven mainly by a $134 million gain related to the contribution of the Regency Interstate Gas Subsidiary (RIGS) to the company's Haynesville joint venture.
In March, Regency said it completed a joint venture with an affiliate of GE Energy Financial Services and Alinda Capital Partners LLC to fund the Haynesville expansion project in North Louisiana. Regency contributed its RIGS system, and GE Energy Financial Services and Alinda contributed $126.5 million and $526.5 million in cash, respectively, to the joint venture in return for a 38 percent, 12 percent and 50 percent general partnership interest, respectively.
Quarterly earnings rose to $148.4 million compared with $10.4 million last year. The company did not provide earnings per share numbers.
Analysts polled by Thomson Reuters estimated a profit of 19 cents per share, on average. Analysts typically exclude one-time items.
Revenue slid 28 percent to $290.1 million from $405.2 million a year ago. Analysts forecast an average revenue of $464.87 million.
The company said its 2009 capital budget has been reduced by about $13 million to $107 million, excluding all spending related to the Haynesville expansion project as those costs are funded by the joint venture.
Shares of the company slid 11 cents to $12.18 in afternoon trading.
source yahoo
In March, Regency said it completed a joint venture with an affiliate of GE Energy Financial Services and Alinda Capital Partners LLC to fund the Haynesville expansion project in North Louisiana. Regency contributed its RIGS system, and GE Energy Financial Services and Alinda contributed $126.5 million and $526.5 million in cash, respectively, to the joint venture in return for a 38 percent, 12 percent and 50 percent general partnership interest, respectively.
Quarterly earnings rose to $148.4 million compared with $10.4 million last year. The company did not provide earnings per share numbers.
Analysts polled by Thomson Reuters estimated a profit of 19 cents per share, on average. Analysts typically exclude one-time items.
Revenue slid 28 percent to $290.1 million from $405.2 million a year ago. Analysts forecast an average revenue of $464.87 million.
The company said its 2009 capital budget has been reduced by about $13 million to $107 million, excluding all spending related to the Haynesville expansion project as those costs are funded by the joint venture.
Shares of the company slid 11 cents to $12.18 in afternoon trading.
source yahoo
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