Regency Energy Partners reports increases in financial results

Regency Energy Partners LP (NYSE: RGP) on Feb. 15 announced its financial results for the fourth quarter and full year ended Dec.31, 2011.

For full-year 2011, adjusted EBITDA increased 29 percent to $422 million, compared to $327 million in 2010. Adjusted EBITDA increased by 13 percent for the fourth quarter of 2011, compared to the fourth quarter of 2010. The increases were primarily attributable to RGP’s acquisition of a 30 percent interest in the Lone Star Joint Venture in May 2011 and an increase in the adjusted segment margin in the Gathering and Processing segment due to increased volumes in south and west Texas. The full-year increase was also partly due to a full-year contribution from the MEP Joint Venture in 2011, compared to a partial-year contribution in 2010.

For full-year 2011, net income increased to $74 million, compared to a net loss of $11 million in 2010. Net income increased to $14 million for the fourth quarter of 2011, compared to a net loss of $9 million for the fourth quarter of 2010.

"Our acquisition of an interest in the Lone Star Joint Venture added a predominantly fee-based natural gas liquids platform to Regency's portfolio which when combined with increased volumes in south and west Texas, led to solid year-over-year adjusted EBITDA growth," said Mike Bradley, president and chief executive officer of Regency. 

Energy Transfer Partners, Regency Partners plan new fractionation unit

HOUSTON, Texas - Energy Transfer Partners, L.P. (NYSE: ETP) and Regency Energy Partners LP (NYSE: RGP) on Feb. 16 announced that their joint venture, Lone Star NGL LLC, will construct a second 100,000 barrel per day (b/d) natural gas liquids fractionation facility at Mont Belvieu, Texas.

Supported by multiple long-term contracts, the second fractionator is necessary to handle the increasing NGL barrels delivered via the partnerships' Woodford Shale, Eagle Ford Shale and Permian Basin infrastructure, including Lone Star's 570-mile West Texas Gateway NGL Pipeline.

Lone Star is on schedule to complete its West Texas Gateway NGL Pipeline and initial 100,000 b/d fractionator at Mont Belvieu in the first quarter of 2013, and expects this second fractionator to be completed in the first quarter of 2014. At an estimated cost of $350 million, the project will also include interconnectivity infrastructure to provide NGL suppliers and NGL markets with significant access to storage, other fractionators, pipelines and multiple markets along the Texas and Louisiana Gulf Coast.

"With the capacity of our first fractionator fully contracted, and increasing customer demand for NGL outlets, the addition of a second fractionator was necessary," said Greg Bowles, senior vice president of Lone Star. "Our two new fractionators and our West Texas Gateway system are all supported by long-term agreements. These assets, along with other projects we are pursuing in these prolific regions, demonstrate our strong commitment to providing full NGL services for our customers."

Dominion looks to expand Cove Point LNG export capabilities

COVE POINT, Md. - Dominion Cove Point received authorization on Oct. 7, 2011, from the Department of Energy to enter into contracts to export liquefied natural gas to countries that have free trade agreements with the United States.

It's quiet these days at Dominion's liquefied natural gas terminal in the Chesapeake Bay. Only five tankers docked last year at the pier a mile off the Calvert County shoreline, and not much traffic is expected this year, either.But thanks in large part to booming production of natural gas from shale deposits in neighboring states, the East Coast's largest LNG terminal could be bustling again in several years - exporting the heating and industrial fuel to other countries, instead of importing it.About 20 nations have free-trade agreements with the U.S. The company is now seeking federal permission to allow shipments to virtually any foreign country, except those barred because of trade embargoes.

Targa Resources, Targa LP announce fourth quarter dividend, distribution

Targa Resources Corp. (NYSE: TRGP) has declared a quarterly cash dividend of $0.33625 per share, or $1.345 per common unit on an annualized basis, for the fourth quarter 2011. The approved dividend represents increases of approximately nine percent over the previous quarter's dividend and 31 percent over the prorated dividend for the fourth quarter 2010. The cash dividend was paid Feb. 15 to holders of record on Jan. 23.

Targa Resources Partners LP (NYSE: NGLS) has declared a quarterly cash distribution of $0.6025 per common unit, or $2.41 per common unit on an annualized basis, for the fourth quarter 2011. The approved distribution represents an increase of approximately three percent over the previous quarter's distribution and 10 percent over the distribution for the fourth quarter 2010. This cash distribution was paid Feb. 14 to holders of record on Jan. 23.

"These increases reflect both the continued strong performance of Targa's businesses and our announced portfolio of organic growth projects," said Joe Bob Perkins, CEO of the Partnership's general partner and of Targa Resources Corp. "These increases are on track with the mid-range of our guidance for full year 2012 growth in the Partnership's distributions of 10 to 15 percent and in the company's dividends of 30 to 40 percent over full year 2011."

Bill by Oregon's DeFazio targets pipeline use of eminent domain

WASHINGTON - Legislation aimed at protecting private property from the use of eminent domain in building a pipeline designed to export liquefied natural gas has been introduced in Congress.

In introducing the bill on Feb. 9, U.S. Rep. Peter DeFazio, D-Ore., noted the U.S. Constitution limits the use of eminent domain to actions necessary for "public use" but said that pipelines such as the one proposed from Malin, Ore., to a proposed LNG terminal in Coos Bay, Ore., fails that test. Instead, it would boost corporate profits while increasing domestic energy costs, he said.

"The Constitution is quite clear: The government can only authorize the use of eminent domain if the action serves the public," DeFazio said in a prepared statement.

"Landowners should not be forced to give up their property so private companies and foreign manufacturers can ship low-cost natural gas overseas and spike energy prices here at home," he added.

"My bill simply strengthens our constitutional property rights and gives property owners a level playing field in negotiating access to their land."

The proposed Pacific Connector Gas Pipeline would stretch 234 miles from a proposed Jordan Cove liquefied natural gas terminal near Coos Bay through Coos, Douglas, Jackson and Klamath counties to Malin.

DeFazio stressed that the legislation does not stop LNG exports. It only ensures private property owners will not be forced to sell their land for the exports.

Plains All American announces new Mississippian Lime Pipeline

Plains All American Pipeline, L.P. (NYSE: PAA) on Feb. 7 announced plans to construct a new 170-mile pipeline to service the increasing Mississippian Lime crude oil production in northern Oklahoma and southern Kansas.

The pipeline, in conjunction with the previously announced Medford-to-Cushing pipeline conversion, is designed to provide approximately 175,000 b/d of crude oil transportation capacity to the Cushing market and is expected to be completed in mid-2013.