Monday, natural gas gathering company Regency Energy Partners LP (RGNC) reported a sharp decline in profit for the second quarter, as total revenues more than halved year-on-year.
For the quarter, net income attributable to the company was $5.89 million, down from $9.97 million in the same quarter last year.
Total revenues plunged to $253.54 million from $546.71 million in the prior-year quarter. Gas sales plunged to $106.90 million from $362.77 million, and NGL sales were $57.68 million, down from $126.52 million in the previous year. Gathering, transportation and other fees, including related party amounts was $69.23 million, lower than $70.18 million last year.
Net realized and unrealized gain from risk management activities was $12.52 million compared with a loss of $32.76 million a year ago. Other revenue declined to $7.22 million from $20.00 million in the prior year.
For the quarter, operating income declined to $23.21 million from $26.51 million in the year-ago quarter. Interest expense increased to $19.57 million from $16.78 million in the previous year.
For the six-month period, net income attributable to the company was $154.28 million, up from $20.32 million last year. Year-to-date, total revenues plummeted to $543.52 million from $951.94 million in the previous year.
Further, the company announced the resignation of Randall Dean as president and chief executive of CDM Resource Management LLC, Regency's Contract Compression segment, effective the end of August 2009.
The company said that David Marrs, a co-founder of CDM, will assume the role of president of the Contract Compression segment. Marrs has served as executive vice president of Regency's Contract Compression segment since January 2008.
Regency also announced the election of Patrick Giroir as executive vice president and chief commercial officer of its Gathering & Processing and Transportation segments. Giroir previously served as senior vice president and chief commercial officer of these segments.
RGNC is currently trading at 16.65, down 1.89%, on the Nasdaq.
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