Duncan Energy Partners L.P.

CIK:0001379378|SEC Filings

Earnings Per Unit

6 Months Ended

Jun. 30, 2011

Note 14. Earnings Per Unit

Basic earnings per unit is computed by dividing net income or loss allocated to limited partner interests by the weighted-average number of distribution-bearing units outstanding during a period. We have no dilutive securities.

The amount of net income or loss allocated to limited partner interests is net of our general partner's share of such earnings. The following table presents the allocation of net income to DEP GP for the periods presented:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2011		2010		2011		2010
Total net income attributable to Duncan Energy Partners L.P.	$	22.5	$	23.3	$	41.8	$	44.5
Multiplied by DEP GP ownership interest		0.7%		0.7%		0.7%		0.7%
Net income allocation to DEP GP	$	0.2	$	0.1	$	0.3	$	0.3

The following table presents our calculation of basic and diluted earnings per unit for the periods presented:

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2011			2010			2011			2010
Total net income attributable to Duncan Energy Partners L.P.	$	22.5		$	23.3		$	41.8		$	44.5
Less: Net income allocation to DEP GP		(0.2	)		(0.1	)		(0.3	)		(0.3	)
Net income allocation to limited partners	$	22.3		$	23.2		$	41.5		$	44.2

Basic and diluted earnings per unit:
Net income allocation to limited partners (numerator)	$	22.3		$	23.2		$	41.5		$	44.2
Weighted-average units outstanding:
Common units (denominator)		57.8			57.7			57.8			57.7

Basic and diluted earnings per unit	$	0.39		$	0.40		$	0.72		$	0.77

Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2011

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Note 17. Supplemental Cash Flow Information

The following table provides information regarding the net effect of changes in our operating assets and liabilities for the periods presented:

	For the Six Months
	Ended June 30,
	2011			2010
Decrease (increase) in:
Accounts receivable - trade	$	(2.6	)	$	(9.9	)
Accounts receivable - related parties		(10.1	)		(19.2	)
Inventories		(10.1	)		(2.5	)
Prepaid and other current assets		(5.7	)		(3.9	)
Other assets		(37.3	)		--
Increase (decrease) in:
Accounts payable – trade		1.0			6.0
Accounts payable – related parties		49.3			3.2
Accrued product payables		(9.6	)		2.4
Other current liabilities		6.4			2.4
Net effect of changes in operating accounts	$	(18.7	)	$	(21.5	)

We incurred liabilities for construction in progress that had not been paid at June 30, 2011 and December 31, 2010 of $134.2 million and $76.9 million, respectively. Such amounts are not included under the caption “Capital expenditures” on the Unaudited Condensed Statements of Consolidated Cash Flows.

Third parties may be obligated to reimburse us for all or a portion of expenditures on certain of our capital projects. The majority of such arrangements are associated with projects related to pipeline construction and producer well tie-ins. These amounts are included under the caption “Contributions in aid of construction costs” on the Unaudited Condensed Statements of Consolidated Cash Flows.

The following table presents the components of depreciation, amortization and accretion for the periods presented:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2011		2010		2011		2010

DEP I Midstream Businesses	$	11.5	$	10.2	$	22.7	$	20.2
DEP II Midstream Businesses		41.6		41.2		82.2		78.6
Other		0.8		0.9		1.5		1.7
Total	$	53.9	$	52.3	$	106.4	$	100.5

See Note 11 for information regarding cash amounts attributable to noncontrolling interests.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Millions	Jun. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 18.6	$ 32.4
Accounts receivable - trade, net of allowance for doubtful accounts of $0.5 and $0.4 at June 30, 2011 and December 31, 2010, respectively.	77.5	66.0
Accounts receivable - related parties	55.1	21.1
Gas imbalance receivables	2.6	11.5
Inventories	15.9	5.8
Prepaid and other current assets	24.6	19.3
Total current assets	194.3	156.1
Property, plant and equipment, net	6,193.9	5,362.2
Investment in Evangeline	5.6	6.4
Intangible assets, net of accumulated amortization of $54.7 and $50.8 at June 30, 2011 and December 31, 2010, respectively.	34.1	38.0
Goodwill	4.9	4.9
Other assets (see Note 16)	40.4	4.3
Total assets	6,473.2	5,571.9
Current liabilities:
Current maturities of debt	282.3	282.3
Accounts payable - trade	197.1	99.3
Accounts payable - related parties	74.3	26.8
Accrued product payables	50.9	60.5
Accrued costs and expenses	18.4	11.5
Other current liabilities	56.1	47.2
Total current liabilities	679.1	527.6
Long-term debt (see Note 9)	867.5	506.0
Deferred tax liabilities	5.9	5.3
Other long-term liabilities	14.9	13.4
Limited partners:
Common units (57,792,270 and 57,749,158 common units outstanding at June 30, 2011 and December 31, 2010, respectively)	754.2	760.3
General partner	(0.1)	0.1
Total partners' equity	754.1	760.4
Noncontrolling interest in subsidiaries: (see Note 11)
DEP I Midstream Businesses - Parent	875.0	686.7
DEP II Midstream Businesses - Parent	3,276.7	3,072.5
Total noncontrolling interest	4,151.7	3,759.2
Total equity	4,905.8	4,519.6
Total liabilities and equity	$ 6,473.2	$ 5,571.9