Boston, MA 05/07/2014 (wallstreetpr) – In spite of releasing an upbeat first quarter performance, DCP Midstream Partners, LP (NYSE:DPM) ended in red on Tuesday.
First Quarter Results Surpass Analysts’ Estimates
The company reported first quarter earnings per share of $0.65 per share that came above the analysts’ estimates of $0.64 per share. At the same time, the company’s revenue grew 47.7% to $1.08 billion year-over-year, which exceeded the market consensus by $101.46 million. The company reported stron adjusted EBITDA of $138 million as well as Distributable Cash Flow of $122 million, indicating growth from organic projects and dropdowns.
$250 Million Project Funding And Completion Of $1.15 Billion Dropdown
One of the main highlights of the call remained DCP Midstream Partners, LP (NYSE:DPM)’s financing of a construction project in the DJ Basin. The partnership started financing the construction work of Lucerne 2 plant, which has an aggregate cost of $250 million. The plant is expected to come in service by mid 2015. Apart from this, the partnership also successfully closed the earlier announced $1.15 billion dropdown. That includes, a one-third interest in the Sand Hills natural gas liquids (NGL) and Southern Hills NGL pipeline. It is also inclusive of remaining 20% interest in the Eagle Ford basin, thereby, bringing the total partnership interest to 100%. Apart from this, Lucerne 1, a cryogenic natural gas processing plant in DJ Basin is also included.
DCP Midstream Partners, LP (NYSE:DPM) generated strong volumes from its Eagle Ford system, which resulted in higher performance of its Natural Gas Segment and helped it to partly offset the lower NGL Logistics and Wholesale Propane performance. As per the company’s CEO Wouter van Kempen, during the first quarter, the Partnership has placed Goliad plant, O’Connor plant progression and Front Range pipeline into service. Kempen said that going forward, the partnership will remain focused in maintaining safety, capital efficiency and value enhancement for its customers and shareholders.