Page 94 - DCP AR2011 Dev

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Results of Operations — Wholesale Propane Logistics Segment
This segment consists of our propane terminals, which include six owned and operated rail terminals, one
owned marine import terminal, one leased marine terminal, one pipeline terminal and access to several open-
access propane pipeline terminals:
Year Ended December 31,
Variance
2011 vs. 2010
Variance
2010 vs. 2009
2011
2010(b)
2009
Increase
(Decrease) Percent
Increase
(Decrease) Percent
(Millions, except operating data)
Operating revenues:
Sales of propane . . . . . . . . . . . . . . . . $ 634.6 $ 473.8 $ 347.2 $160.8
34% $126.6 36%
Transportation, processing and
other . . . . . . . . . . . . . . . . . . . . . . .
0.2
0.3
0.4
(0.1)
(33)%
(0.1)
(25)%
(Losses) gains from commodity
derivative activity . . . . . . . . . . . . .
(1.2)
(0.9)
0.6
(0.3)
(33)%
(1.5)
*
Total operating revenues . . . . . . . . . 633.6 473.2 348.2 160.4
34% 125.0 36%
Purchases of propane . . . . . . . . . . . . . . 582.5 444.3 299.3 138.2
31% 145.0 48%
Segment gross margin(a) . . . . . . . . . . .
51.1 28.9 48.9 22.2
77% (20.0)
(41)%
Operating and maintenance
expense . . . . . . . . . . . . . . . . . . . . .
(15.1)
(12.6)
(10.3)
2.5
20% 2.3 22%
Depreciation and amortization
expense . . . . . . . . . . . . . . . . . . . . .
(2.9)
(1.9)
(1.4)
1.0
53% 0.5 36%
Other income — affiliates . . . . . . . . —
3.0 —
(3.0) (100)% 3.0 100%
Segment net income attributable to
partners . . . . . . . . . . . . . . . . . . . . . . . $ 33.1 $ 17.4 $ 37.2 $ 15.7
90% $ (19.8)
(53)%
Operating Data:
Propane sales volume (Bbls/d) . . . . . 24,743 22,350 22,278 2,393
11%
72 —%
* Percentage change is not meaningful.
(a) Segment gross margin consists of total operating revenues, including commodity derivative activity, less
purchases of propane. Please read “Reconciliation of Non-GAAP Measures” above.
(b) Includes the results of our Chesapeake terminal, acquired July 30, 2010 from Atlantic Energy.
Year Ended December 31, 2011 vs. Year Ended December 31, 2010
Total Operating Revenues
— Total operating revenues increased in 2011 compared to 2010, primarily as a
result of the following:
• $106.8 million increase attributable to higher propane prices, which impacts both purchases and sales;
and
• $53.9 million increase primarily as a result of our acquisition of Atlantic Energy.
These increases were partially offset by:
• $0.3 million decrease related to commodity derivative activity.
Purchases of Propane
— Purchases of propane increased in 2011 compared to 2010 due to higher propane
prices, which impact both sales and purchases, and our acquisition of Atlantic Energy.
Segment Gross Margin —
Segment gross margin increased in 2011 compared to 2010, primarily as a result
of higher unit margins, increased volumes and our acquisition of Atlantic Energy. 2010 results reflect a planned
outage related to our Providence terminal inspection.
Operating and Maintenance Expense
— Operating and maintenance expense increased in 2011 compared
to 2010, primarily as a result of our acquisition of Atlantic Energy.
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