Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. Regency Energy Partners LP (1338613) 10-Q published on May 08, 2015 at 2:57 pm
Reporting Period: Mar 30, 2015
Federal Lawsuit”). On April 1, 2015, plaintiffs in the Consolidated Federal Lawsuit filed an Emergency Motion to Expedite Discovery. On April 9, 2015, by order of the Court, the parties submitted a joint submission wherein defendants opposed plaintiffs request to expedite discovery. On April 17, 2015, the Court denied plaintiffs’ motion to expedite discovery.
NMED Settlement. In April 2015, our subsidiary, Regency Field Services LLC (“RFS”) entered into a Settlement Agreement (“Agreement”) with the New Mexico Environment Department (“NMED”), settling and resolving the penalty assessment issued by the NMED concerning alleged violations New Mexico air regulations related to the Jal #3 and Jal #4 facilities. Pursuant to the Agreement, RFS agreed to pay a $1.2 million civil penalty to settle the alleged violations.
Merger with ETP. On April 30, 2015, we merged with a wholly-owned subsidiary of ETP, with the Partnership continuing as the surviving entity and becoming a wholly-owned subsidiary of ETP (the “Merger”). At the effective time of the Merger (the “Effective Time”), each Partnership common unit and Class F unit converted into the right to receive 0.4124 ETP common units. Based on the Partnership units outstanding, ETP issued approximately 172.2 million ETP Common Units to the Partnership’s unitholders, including approximately 15.5 million units issued to ETP subsidiaries. Series A Preferred Units converted into the right to receive a preferred unit representing a limited partner interest in ETP, a new class of units in ETP established at the Effective Time. The merger was a combination of entities under common control; therefore, the carrying amounts of the Partnership's assets and liabilities will not be adjusted.
HPC’s net income increased to $19 million for the three months ended March 31, 2015 from $15 million for the three months ended March 31, 2014, primarily due to lower general and administrative expenses and higher revenues. MEP’s net income increased to $23 million for the three months ended March 31, 2015 from $21 million for the three months ended March 31, 2014. Lone Star’s net income increased to $97 million for the three months ended March 31, 2015 from $83 million for the three months ended March 31, 2014, primarily due to an increase in fractionated volumes of 66,000 BPD period over period as we commissioned Fractionator II in October 2013 and ramped up volumes to capacity. Additionally, a 33,000 BPD increase in transported volumes on our pipeline system increased net income for the current period as compared to the prior year period.
Interest Expense, Net. Interest expense, net increased to $82 million for the three months ended March 31, 2015 from $56 million for the three months ended March 31, 2014, primarily due to $15 million in interest expense related to the senior notes assumed in the PVR Acquisition, and $18 million in interest expense related to the senior notes assumed in the Eagle Rock acquisition.
Equity Distribution Agreement. During the three months ended March 31, 2015, we received net proceeds of $34 million from common units sold pursuant to an equity distribution agreement which were used for general partnership purposes. We did not issue any common units under the equity distribution agreement subsequent to March 31, 2015, and the equity distribution agreement terminated as a result of the ETP Merger in April 2015.