- Executing on significant organic growth opportunities in Piceance Basin

                               and East Texas

               - Natural gas services drives strong earnings

  - Distribution up 13 percent over second quarter 2007, to $0.60 per unit



    DENVER, Aug. 7 /EMWNews/ -- DCP Midstream Partners, LP

(NYSE: DPM), or the Partnership, today reported financial results for the

three and six months ended June 30, 2008.




    







    SECOND QUARTER AND YEAR-TO-DATE HIGHLIGHTS



                            Three Months Ended          Six Months Ended

                                 June 30,                   June 30,

                             2008          2007         2008          2007

                                               (unaudited)

                                 (Millions, except per unit amounts)

    Net (loss) income      $(159.3)        $0.8      $(165.8)       $16.6

    Net (loss) income

     per unit               $(5.66)       $0.01       $(6.33)       $0.60

    Adjusted EBITDA          $26.1        $21.0        $63.2        $45.3

    Adjusted net income      $11.0        $12.7        $33.1        $31.5

    Adjusted net income

     per unit                $0.29        $0.57        $0.95        $1.25





    Adjusted EBITDA increased $5.1 million and $17.9 million for the three

and six months ended June 30, 2008, as compared to the same periods in

2007, primarily due to increased earnings from the natural gas services

segment, partially offset by increased operating and maintenance expense

associated with 2007 acquisitions and operational disruptions occurring in

the second quarter of 2008 at our Douglas system.



    Adjusted EBITDA, adjusted net income and adjusted net income per unit,

which are non-generally accepted accounting principles ("non-GAAP")

financial measures, eliminate the impact of non-cash mark-to-market gains

and losses which arise from valuing certain of the Partnership's derivative

transactions. Each are explained in greater detail under "Non-GAAP

Financial Information" below and are reconciled to their most comparable

GAAP financial measures, in "Reconciliation of Non-GAAP Measures" below.



    CEO PERSPECTIVE



    "Our operations supported our ninth consecutive increase to our

quarterly distribution, providing our unitholders with $0.60 per unit or

$2.40 annually," said Mark Borer, president and CEO. "Results from our

natural gas services segment were the primary drivers of earnings increases

over 2007 results. Our results were tempered, in part, this quarter by

operational issues at our Douglas system."



    "We are pleased to have a slate of organic projects under way to

continue to grow the Partnership," continued Borer. "Soon we will begin

expanding our East Texas joint venture gathering system and we're

finalizing plans for a significant expansion of our Piceance Basin

gathering system. Both of these projects will provide attractive accretion

to our unitholders. We are also pursuing development of an intrastate

pipeline through the Haynesville Shale play in North Louisiana with M2

Midstream LLC. If built, our Haynesville Connector pipeline would leverage

off our existing Pelico intrastate pipeline infrastructure, providing us a

great opportunity to establish a powerful presence in one of the fastest

growing natural gas plays in the United States."



    "As you will recall, DCP Midstream previously announced its plan to

offer to sell the remaining 75 percent of East Texas to the Partnership,"

continued Borer. "While we and DCP Midstream remain committed to pursuing a

drop down of the East Texas asset, given continued volatility in capital

markets, we may defer the drop down beyond our original 2008 targeted

closing date. Our strong financial position and the strength of the

Partnership's sponsorship affords us flexibility in the timing of

drop-downs as we continue to execute our growth strategy, including our

slate of organic growth projects."



    CORPORATE AND OTHER



    General and administrative expense decreased by $1.6 million to $5.3

million, and by $0.9 million to $10.8 million, for the three and six months

ended June 30, 2008, respectively, as compared to the same periods in 2007,

primarily due to transaction costs incurred in 2007 related to acquisitions

and decreased benefits cost in 2008, partially offset by increased fees

paid to DCP Midstream, LLC in 2008 under the Omnibus Agreement, primarily

due to 2007 acquisitions.



    Depreciation and amortization expense and net interest expense

increased for the three and six months ended June 30, 2008, respectively,

as compared to the same periods in 2007, primarily as a result of 2007

acquisitions and their related financing.



    COMMODITY DERIVATIVE ACTIVITY



    We utilize mark-to-market accounting treatment for our commodity

derivative instruments. Mark-to-market accounting rules require companies

to record currently in earnings the difference between their contracted

derivative settlement prices and the forward prices of the underlying

commodities. In the second quarter of 2008, we recorded a non-cash loss

associated with our commodity derivative instruments of $170.4 million, as

compared to a non-cash loss of $11.9 million for the second quarter of

2007. While our earnings will continue to fluctuate as a result of the

volatility in the commodity markets, our derivative contracts yield us

fixed prices and help to stabilize distributable cash flows.



    DISTRIBUTION INCREASE



    On July 24, 2008, the Partnership announced a $0.01 increase in the

quarterly distribution to $0.60 per limited partner unit, or $2.40 per

limited partner unit on an annualized basis. Distributable cash flow was

$23.5 million for the three months ended June 30, 2008, providing 1.17

times the amount required to cover our current distribution to both the

general and limited partners. For the six months ended June 30, 2008, our

distributable cash flow of $55.6 million provided 1.40 times the amount

required to cover our total distribution. Non-cash gains or losses

associated with the mark-to-market accounting treatment of our commodity

derivative instruments do not affect our distributable cash flow.



    Distributable cash flow, which is a non-GAAP financial measure, is

explained in greater detail under "Non-GAAP Financial Information" below

and is reconciled from net (loss) income and from net cash provided by

operating activities, its most comparable GAAP financial measures, in

"Reconciliation of Non-GAAP Measures" below.



    OPERATING RESULTS BY BUSINESS SEGMENT



    Natural Gas Services -- Adjusted segment gross margin increased $1.3

million to $24.0 million for the three months ended June 30, 2008, from

$22.7 million for the same period in 2007. Adjusted segment gross margin

increased $12.7 million to $52.5 million for the six months ended June 30,

2008, from $39.8 million for the same period in 2007. The increases in

margin are primarily due to the acquisitions closed in May and August of

2007, higher commodity prices in 2008 as compared to 2007 and changes in

contract mix. These increases were partially offset by hedge settlements,

of which $5.2 million and $8.1 million for the three and six months ended

June 30, 2008, respectively, relate to our equity investments in East Texas

and Discovery. Although results from East Texas and Discovery are pooled in

our second quarter 2007 results in equity earnings, there were no hedge

settlements for these two investments prior to the Partnership's purchase

of them on July 1, 2007.



    We completed pipeline integrity testing at our Douglas system in the

second quarter of 2008. Based on the results, we curtailed certain volumes

and reduced pipeline operating pressures, reducing cash flows for the

quarter. Over the next six months, we anticipate decreased operating

revenues and increased operating costs as we address the results of the

testing.



    Equity earnings representing our 25 percent interest in East Texas and

40 percent interest in Discovery increased by $7.1 million to $13.2

million, and by $17.7 million to $30.0 million, for the three and six

months ended June 30, 2008, respectively, as compared to the same periods

in 2007. The increase for East Texas is primarily due to increased

commodity prices, fee-based revenue and volumes, and decreased general and

administrative expenses, partially offset by increased operating expenses.

The increase for Discovery is primarily due to increased processing volumes

and margins and higher other income, net, partially offset by higher

general and administrative expense.



    Wholesale Propane Logistics -- Adjusted segment gross margin decreased

by $1.5 million to $2.6 million for the three months ended June 30, 2008,

from $4.1 million for the same period in 2007. Adjusted segment gross

margin decreased by $6.5 million to $8.5 million for the six months ended

June 30, 2008, from $15.0 million for the same period of 2007. The

decreases are primarily a result of lower unit margins and sales volumes.

For the three and six months ended June 30, 2008, the decrease in sales

volumes was driven primarily by supply disruptions and decreased demand as

a result of higher propane prices. Unit margins for the six months ended

June 30, 2007, were favorably impacted by the reversal of non-cash

inventory adjustments taken in late 2006.



    During the second quarter of 2008, we received $1.5 million from a

supplier related to the early termination of its supply agreement. This

agreement was set to expire in the second quarter of 2009. This termination

payment was recorded to other operating income.



    NGL Logistics -- Segment gross margin increased $0.9 million and $1.5

million for the three and six months ended June 30, 2008, respectively, as

compared to the same periods in 2007, primarily due to changes in product

mix and increased throughput volumes on both our Seabreeze and Wilbreeze

pipelines.



    Equity earnings from our 45 percent interest in the Black Lake pipeline

remained relatively constant for the three and six months ended June 30,

2008, as compared to the same periods in 2007.



    Segment gross margin and adjusted segment gross margin, which are

non-GAAP financial measures, are explained in greater detail under

"Non-GAAP Financial Information" below and are reconciled from segment net

(loss) income, their most comparable GAAP financial measure, in

"Reconciliation of Non-GAAP Measures" below.



    ORGANIC GROWTH PROJECTS



    Piceance Basin Gathering Expansion



    The Partnership is finalizing agreements for Collbran Valley Gas

Gathering (CVGG) to invest approximately $150 million over a multi-year

period to construct a 24-inch diameter gathering pipeline with a capacity

of 600 MMcf/d to support the increasing need for natural gas infrastructure

in the Collbran Valley area of the Piceance Basin, located in western

Colorado. The gathering system will be supported by long-term acreage

dedications from Plains Exploration & Production (PXP), Delta Petroleum

(Delta), and a long-term dedication from a subsidiary of Enterprise

Products Partners L.P. (Enterprise) covering gas it has the right to gather

from a specified, dedicated area within the Piceance Basin. The new CVGG

gathering line will interconnect with a pipeline to be constructed by

Enterprise, where it will be gathered into Enterprise's Meeker gas

processing facility. The Partnership owns a 70 percent interest in CVGG,

PXP and OXY USA, Inc. together own 25 percent, and Delta owns 5 percent.



    East Texas Pipeline Expansion



    The Partnership, along with DCP Midstream, LLC, the owner of the

Partnership's general partner, recently announced a $56 million pipeline

project which will extend their East Texas joint venture gathering

footprint in southern Panola County and access volumes from the rapidly

growing Minden field in Rusk County. The 30-mile, 20-inch diameter

pipeline, with a designed capacity of 175 MMcf/d, will gather gas for

processing at the joint venture's East Texas complex. The gathering system

is scheduled to be in-service during the second quarter of 2009. Upon

completion, the pipeline will receive dedicated volumes from third parties

and expand our reach into a new development area of East Texas. The

Partnership owns 25 percent of the East Texas joint venture.



    Haynesville Connector Intrastate Pipeline



    The Partnership and M2 Midstream LLC recently announced an agreement to

pursue development of a new large diameter intrastate natural gas pipeline

to help meet producers' anticipated needs for pipeline infrastructure in

the emerging Haynesville Shale play in North Louisiana. The Haynesville

Connector would be an extension of the Partnership's Pelico Intrastate

Pipeline and would originate in western DeSoto Parish and span over 150

miles to Delhi, La., providing access to multiple takeaway pipelines in the

area. If built, the Haynesville Connector would commence initial deliveries

in the third quarter of 2009 and would offer an estimated 1.5 billion cubic

feet per day of takeaway capacity by early 2010.



    CAPITALIZATION



    As of June 30, 2008, we had $440.0 million outstanding under the

revolver portion and $220.0 million outstanding under the term loan portion

of our $850.0 million credit facility. The term loan is fully

collateralized by marketable securities, resulting in a net debt balance of

$440.0 million and available capacity under our revolver of approximately

$190.0 million. The term loan collateral may be used to fund organic growth

projects or third party acquisitions.



    We mitigate a portion of our interest rate risk with interest rate

swaps which reduce our exposure to market rate fluctuations by converting

variable interest rates to fixed interest rates. As of June 30, 2008, our

weighted average cost of debt under our revolving credit facility was 5.16

percent.



    EARNINGS CALL



    DCP Midstream Partners will hold a conference call to discuss second

quarter results on Friday, August 8, 2008, at 11 a.m. ET. The dial-in

number for the call is 800-860-2422 in the United States or 412-858-4600

outside the United States. A live Webcast of the call can be accessed on

the investor information page of DCP Midstream Partners' Web site at

http://www.dcppartners.com. The call will be available for replay until

Aug. 18, 2008, by dialing 877-344-7529, in the United States or

412-317-0088 outside the United States. The passcode is 421185. A replay

and transcript of the broadcast will also be available on the Partnership's

Web site.



    NON-GAAP FINANCIAL INFORMATION



    This press release and the accompanying financial schedules include the

non-GAAP financial measures of distributable cash flow, EBITDA, adjusted

EBITDA, adjusted net income, adjusted net income per unit, gross margin,

segment gross margin and adjusted segment gross margin. The accompanying

schedules provide reconciliations of these non-GAAP financial measures to

their most directly comparable financial measures calculated and presented

in accordance with accounting principles generally accepted in the United

States of America ("GAAP"). Our non-GAAP financial measures should not be

considered an alternative to, or more meaningful than, net income,

operating income, cash flows from operating activities or any other measure

of liquidity or financial performance presented in accordance with GAAP as

measures of operating performance, liquidity or ability to service debt

obligations and make cash distributions to unitholders. Our distributable

cash flow, EBITDA, adjusted EBITDA, adjusted net income, adjusted net

income per unit, gross margin, segment gross margin and adjusted segment

gross margin may not be comparable to a similarly titled measure of another

company because other entities may not calculate these measures in the same

manner.



    We define distributable cash flow as net cash provided by operating

activities, less maintenance capital expenditures, net of reimbursable

projects, plus or minus adjustments for non-cash mark-to-market of

derivative instruments, net changes in operating assets and liabilities,

and other adjustments to reconcile net cash provided by or used in

operating activities. Maintenance capital expenditures are capital

expenditures made where we add on to or improve capital assets owned, or

acquire or construct new capital assets, if such expenditures are made to

maintain, including over the long term, our operating capacity. Non-cash

mark-to-market of derivative instruments is considered to be non-cash for

the purpose of computing distributable cash flow because settlement will

not occur until future periods, and will be impacted by future changes in

commodity prices. Distributable cash flow is used as a supplemental

liquidity measure by our management and by external users of our financial

statements, such as investors, commercial banks, research analysts and

others, to assess our ability to make cash distributions to our unitholders

and our general partner.



    We define EBITDA (earnings before interest, taxes, depreciation and

amortization) as net (loss) income less interest income, plus interest

expense, income tax expense and depreciation and amortization expense. We

define adjusted EBITDA as EBITDA plus non-cash derivative losses, less

non-cash derivative gains. These non-cash losses and gains result from the

marking to market of certain financial derivatives used by the Partnership

for risk management purposes that we do not account for under the hedge

method of accounting. These non-cash losses or gains may or may not be

realized in future periods when the derivative contracts are settled, due

to fluctuating commodity prices.



    EBITDA and adjusted EBITDA are used as supplemental liquidity measures

by our management and by external users of our financial statements, such

as investors, commercial banks, research analysts and others, to assess the

ability of our assets to generate cash sufficient to pay interest costs,

support our indebtedness, make cash distributions to our unitholders and

general partner, and finance maintenance capital expenditures.



    EBITDA and adjusted EBITDA are also used as supplemental performance

measures by our management and by external users of our financial

statements, such as investors, commercial banks, research analysts and

others, to assess:






    -- financial performance of our assets without regard to financing

       methods, capital structure or historical cost basis;

    -- our operating performance and return on capital as compared to those of

       other companies in the midstream energy industry, without regard to

       financing methods or capital structure; and

    -- viability of acquisitions and capital expenditure projects and the

       overall rates of return on alternative investment opportunities.



    We define adjusted net income as net (loss) income plus non-cash

derivative losses, less non-cash derivative gains. These non-cash

derivative losses and gains result from the marking to market of certain

financial derivatives used by the Partnership for risk management purposes

that we do not account for under the hedge method of accounting. Adjusted

net income is provided to illustrate trends in income excluding these

non-cash derivative losses or gains, which may or may not be realized in

future periods when derivative contracts are settled, due to fluctuating

commodity prices.



    We define gross margin as total operating revenues less purchases of

natural gas, propane and NGLs, and we define segment gross margin for each

segment as total operating revenues for that segment less commodity

purchases for that segment. Our gross margin equals the sum of our segment

gross margins. We define adjusted segment gross margin as segment gross

margin plus non-cash derivative losses, less non-cash derivative gains for

that segment. Gross margin, segment gross margin and adjusted segment gross

margin are primary performance measures used by management, as these

measures represent the results of product sales and purchases, a key

component of our operations.



    DCP Midstream Partners, LP (NYSE: DPM) is a midstream master limited

partnership that gathers, processes, transports and markets natural gas and

natural gas liquids and is a leading wholesale distributor of propane. DCP

Midstream Partners, LP is managed by its general partner, DCP Midstream GP,

LLC, which is wholly owned by DCP Midstream, LLC, a joint venture between

Spectra Energy and ConocoPhillips. For more information, visit the DCP

Midstream Partners, LP Web site at http://www.dcppartners.com.



    This press release may contain or incorporate by reference

forward-looking statements as defined under the federal securities laws

regarding DCP Midstream Partners, LP, including projections, estimates,

forecasts, plans and objectives. Although management believes that

expectations reflected in such forward-looking statements are reasonable,

no assurance can be given that such expectations will prove to be correct.

In addition, these statements are subject to certain risks, uncertainties

and other assumptions that are difficult to predict and may be beyond our

control. If one or more of these risks or uncertainties materialize, or if

underlying assumptions prove incorrect, the Partnership's actual results

may vary materially from what management anticipated, estimated, projected

or expected. Among the key risk factors that may have a direct bearing on

the Partnership's results of operations and financial condition are:






    -- the level and success of natural gas drilling around our assets and our

       ability to connect supplies to our gathering and processing systems in

       light of competition;

    -- our ability to grow through acquisitions or organic growth projects,

       and the successful integration and future performance of such assets;

    -- our ability to access the debt and equity markets;

    -- fluctuations in oil, natural gas, propane and other NGL prices;

    -- our ability to purchase propane from our principal suppliers for our

       wholesale propane logistics business; and

    -- the credit worthiness of counterparties to our transactions.



    While DCP Midstream, LLC has indicated that it plans to make an offer

to the Partnership regarding the sale of its 75 percent interest in the

East Texas joint venture, DCP Midstream, LLC may ultimately elect not to

offer these assets to the Partnership or to offer different assets to the

Partnership. Additionally, even if DCP Midstream, LLC elects to offer the

assets to the Partnership, the two parties may not agree upon mutually

acceptable terms.



    Investors are encouraged to closely consider the disclosures and risk

factors contained in the Partnership's annual and quarterly reports filed

from time to time with the Securities and Exchange Commission. The

Partnership undertakes no obligation to publicly update or revise any

forward-looking statements, whether as a result of new information, future

events or otherwise. Information contained in this press release is

unaudited, and is subject to change.










                          DCP MIDSTREAM PARTNERS, LP

                              FINANCIAL RESULTS

                                 (Unaudited)



                              Three Months Ended        Six Months Ended

                                   June 30,                 June 30,

                              2008         2007         2008          2007

                                 (Millions, except per unit amounts)



    Sales of natural gas,

     propane, NGLs and

     condensate             $318.5       $185.6       $681.2       $418.5

    Transportation,

     processing and other     14.0          7.5         26.1         14.8

    Losses from commodity

     derivative activity,

     net                    (186.6)       (12.0)      (223.7)       (15.0)

      Total operating

       revenues              145.9        181.1        483.6        418.3

    Purchases of natural

     gas, propane and NGLs   287.8        165.2        617.5        376.1

    Gross margin            (141.9)        15.9       (133.9)        42.2

    Operating and

     maintenance expense     (11.0)        (6.3)       (21.6)       (12.9)

    General and

     administrative expense   (5.3)        (6.9)       (10.8)       (11.7)

    Other                      1.5           --          1.5           --

    Earnings from equity

     method investments       13.4          6.4         30.6         12.8

    Non-controlling

     interest in income       (0.9)          --         (1.5)          --

    EBITDA                  (144.2)         9.1       (135.7)        30.4

    Depreciation and

     amortization expense     (9.0)        (4.5)       (17.5)        (7.9)

    Interest income            1.8          0.8          3.4          2.5

    Interest expense          (7.9)        (4.6)       (16.0)        (8.4)

    Net (loss) income      $(159.3)        $0.8      $(165.8)       $16.6

      Less:

        Net income

         attributable

         to predecessor

         operations             --         (0.3)          --         (3.6)

        General partner

         interest in net

         income               (0.5)        (0.3)        (2.2)        (0.6)

    Net (loss) income

     allocable to limited

     partners              $(159.8)        $0.2      $(168.0)       $12.4



    Net (loss) income per

     limited partner

     unit-basic and

     diluted                $(5.66)       $0.01       $(6.33)       $0.60



    Weighted-average

     limited partner

     units

     outstanding-basic

     and diluted              28.2         18.0         26.6         17.8







                          DCP MIDSTREAM PARTNERS, LP

                     RECONCILIATION OF NON-GAAP MEASURES

                                 (Unaudited)



                            Three Months Ended          Six Months Ended

                                  June 30,                   June 30,

                            2008           2007         2008         2007

                                 (Millions, except per unit amounts)



    Reconciliation of

     Non-GAAP Measures:



    Net (loss) income      $(159.3)        $0.8      $(165.8)       $16.6

      Interest income         (1.8)        (0.8)        (3.4)        (2.5)

      Interest expense         7.9          4.6         16.0          8.4

      Depreciation and

       amortization

       expense                 9.0          4.5         17.5          7.9

    EBITDA                  (144.2)         9.1       (135.7)        30.4

      Non-cash derivative

       mark-to-market        170.3         11.9        198.9         14.9

    Adjusted EBITDA           26.1         21.0         63.2         45.3

      Interest income          1.8          0.8          3.4          2.5

      Interest expense        (7.9)        (4.6)       (16.0)        (8.4)

      Depreciation and

       amortization

       expense                (9.0)        (4.5)       (17.5)        (7.9)

    Adjusted net income       11.0         12.7         33.1         31.5

      Maintenance capital

       expenditures, net

       of reimbursable

       projects               (1.4)        (0.3)        (1.9)        (0.9)

      Earnings from equity

       method investments,

       net of distributions    4.9          6.5          6.9          5.7

      Depreciation and

       amortization expense    9.0          4.5         17.5          7.9

    Distributable cash flow  $23.5        $23.4        $55.6        $44.2



    Adjusted net income      $11.0        $12.7        $33.1        $31.5

      Less:

        Net income

         attributable

         to predecessor

         operations             --         (0.3)          --         (3.6)

        General partner

         interest in net

         income               (2.8)        (0.5)        (4.9)        (0.9)

    Adjusted net income

     allocable to limited

     partners                 $8.2        $11.9        $28.2        $27.0



    Adjusted net income

     per unit                $0.29        $0.57        $0.95        $1.25



    Net cash (used in)

     provided by operating

     activities             $(12.4)       $20.0        $12.7        $39.8

      Interest income         (1.8)        (0.8)        (3.4)        (2.5)

      Interest expense         7.9          4.6         16.0          8.4

      Earnings from equity

       method investments,

       net of distributions   (4.9)        (6.5)        (6.9)        (5.7)

      Net changes in

       operating assets and

       liabilities          (132.4)        (8.1)      (153.4)       (10.0)

      Other, net              (0.6)        (0.1)        (0.7)         0.4

    EBITDA                  (144.2)         9.1       (135.7)        30.4

      Non-cash derivative

       mark-to-market        170.3         11.9        198.9         14.9

    Adjusted EBITDA           26.1         21.0         63.2         45.3

      Interest income          1.8          0.8          3.4          2.5

      Interest expense        (7.9)        (4.6)       (16.0)        (8.4)

      Maintenance capital

       expenditures, net

       of reimbursable

       projects               (1.4)        (0.3)        (1.9)        (0.9)

      Earnings from equity

       method investments,

       net of distributions    4.9          6.5          6.9          5.7

    Distributable cash flow  $23.5        $23.4        $55.6        $44.2







                          DCP MIDSTREAM PARTNERS, LP

                 SEGMENT FINANCIAL RESULTS AND OPERATING DATA

                   AND RECONCILIATION OF NON-GAAP MEASURES

                                 (Unaudited)



                             Three Months Ended         Six Months Ended

                                  June 30,                  June 30,

                             2008           2007        2008          2007

                                   (Millions, except as indicated)

    Natural Gas Services

     Segment:

    Financial results:

      Segment net (loss)

       income              $(150.4)        $9.5      $(152.2)       $23.7

      Operating and

       maintenance expense     8.1          3.9         15.8          7.2

      Depreciation and

       amortization

       expense                 8.4          3.8         16.2          6.7

      Earnings from

       equity method

       investments           (13.2)        (6.1)       (30.0)       (12.3)

      Non-controlling

       interest in income      0.9           --          1.5           --

    Segment gross margin    (146.2)        11.1       (148.7)        25.3

      Non-cash derivative

       mark-to-market        170.2         11.6        201.2         14.5

    Adjusted segment

     gross margin            $24.0        $22.7        $52.5        $39.8



    Operating data:

      Natural gas

       throughput (MMcf/d)     835          733          831          716

      NGL gross production

       (Bbls/d)             23,769       21,563       24,480       20,207





    Wholesale Propane

     Logistics Segment:

    Financial results:

    Segment net income        $0.9         $1.5         $6.5         $8.9

      Operating and

       maintenance expense     2.7          2.1          5.4          5.3

      Depreciation and

       amortization

       expense                 0.3          0.2          0.6          0.4

      Other                   (1.5)          --         (1.5)          --

    Segment gross margin       2.4          3.8         11.0         14.6

      Non-cash derivative

       mark-to-market          0.2          0.3         (2.5)         0.4

    Adjusted segment

     gross margin             $2.6         $4.1         $8.5        $15.0



    Operating data:

      Propane sales volume

       (Bbls/d)             14,442       16,179       24,178       25,715





    NGL Logistics Segment:

    Financial results:

    Segment net income        $1.6         $0.5         $3.3         $1.6

      Operating and

       maintenance expense     0.2          0.3          0.4          0.4

      Depreciation and

       amortization expense    0.3          0.5          0.7          0.8

      Earnings from equity

       method investments     (0.2)        (0.3)        (0.6)        (0.5)

    Segment gross margin      $1.9         $1.0         $3.8         $2.3



    Operating data:

      NGL pipelines

       throughput (Bbls/d)  34,286       28,376       33,081       27,917