Updated Fiscal Year 2009 Guidance
The Partnership announced today updated fiscal year 2009 guidance. For 2009, the Partnership is now estimating EBITDA in a range of
"Despite the fact that the Partnership will report record inlet natural gas and NGL sales volumes in the fourth quarter of 2008, the significant drop in commodity prices in the futures markets and the Partnership's corresponding expected cash flow has created a number of challenges," said
Quarterly Distribution Declarations
Hiland Partners, LP
The Board of Directors of Hiland Partners GP, LLC, the general partner of Hiland Partners, LP, today announced a cash distribution for the fourth quarter of 2008. The declared quarterly distribution on the Partnership's common and subordinated units is
In making its distribution decision, the Partnership's Board of Directors considered the impact of lower commodity prices on cash flow for the fourth quarter of 2008 and on the outlook for future projected cash flow. The Board of Directors also considered future required levels of capital expenditures and the level of the Partnership's outstanding indebtedness under its secured revolving credit facility relative to such projections. If commodity prices do not significantly improve above the expected prices for 2009, the Partnership may be in violation of the maximum consolidated funded debt to EBITDA ratio contained in the Partnership's senior secured revolving credit facility as early as the end of the second quarter of 2009, unless the ratio is amended, the Partnership's debt is restructured or the Partnership receives an infusion of equity capital.
"The Partnership will continue to carefully scrutinize distribution and discretionary capital expenditure decisions given the potential covenant issues related to the Partnership's secured revolving credit facility," continued Griffin.
Hiland Holdings GP, LP
The Board of Directors of Hiland Partners GP Holdings, LLC, the general partner of Hiland Holdings GP, LP, today announced a cash distribution for the fourth quarter of 2008. The declared quarterly distributions on Hiland Holding's units is
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Please note that one hundred (100.0%) percent of Hiland's distributions to foreign investors are attributable to income that is effectively connected with a
We define EBITDA, a non-GAAP financial measure, as net income plus interest expense, provisions for income taxes and depreciation, amortization and accretion expense. EBITDA is used as a supplemental financial measure by our management and by external users of our financial statements such as investors, commercial banks, research analysts and others to assess: (1) the financial performance of our assets without regard to financial methods, capital structure or historical cost basis; (2) the ability of our assets to generate cash sufficient to pay interest costs and support our indebtedness; (3) our operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing or structure; and (4) the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities. EBITDA is also a financial measurement that, with certain negotiated adjustments, is reported to our banks and is used as a gauge for compliance with our financial covenants under our credit facility. EBITDA should not be considered as an alternative to net income, operating income, cash flows from operating activities or any other measures of financial performance presented in accordance with GAAP. Our EBITDA may not be comparable to EBITDA of similarly titled measures of other entities, as other entities may not calculate EBITDA in the same manner as we do.
About the Hiland Companies
Hiland Partners, LP is a publicly traded midstream energy partnership engaged in purchasing, gathering, compressing, dehydrating, treating, processing and marketing of natural gas, and fractionating, or separating, and marketing of natural gas liquids, or NGLs. The Partnership also provides air compression and water injection services for use in oil and gas secondary recovery operations. The Partnership's operations are primarily located in the Mid-Continent and Rocky Mountain regions of
Hiland Holdings GP, LP owns the two percent general partner interest, 2,321,471 common units and 3,060,000 subordinated units in Hiland Partners, LP, and the incentive distribution rights of Hiland Partners, LP.
This press release may include certain statements concerning expectations for the future that are forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results are discussed in the Partnership's Annual Report on Form 10-K, the Partnership's Form 10-Q for the period ended
SOURCE Hiland Partners, LP; Hiland Holdings GP, LP