HOUSTON–(EMWNews)–Duncan Energy Partners L.P. (NYSE:DEP) today announced its financial and

operating results for the three and six months ended June 30, 2008 and

2007. The partnership reported a 45 percent increase in net income to

$6.6 million for the second quarter of 2008, or $0.32 per common unit on

a fully diluted basis, compared to net income of $4.5 million, or $0.22

per common unit on a fully diluted basis, for the second quarter of 2007.

Distributable cash flow increased 65 percent to $10.8 million in the

second quarter of 2008 from $6.6 million in the second quarter of 2007.

On July 16, 2008, the board of directors of DEP’s

general partner approved an increase in the partnership’s

quarterly cash distribution rate paid to partners in respect of the

second quarter of 2008 to $0.42 per common unit, or $1.68 per unit on an

annualized basis. This represents a five percent increase over the $0.40

per unit quarterly distribution that was paid with respect to the second

quarter of 2007. Distributable cash flow for the second quarter of 2008

provided 1.2 times coverage of the quarterly cash distribution to be

paid to the partnership’s limited partners.

Distributable cash flow is a non-generally accepted accounting principle

(or “non-GAAP”)

financial measure that is defined and reconciled later in this press

release to its most directly comparable GAAP financial measure, net cash

flows provided by operating activities.

“We’re pleased to

report another quarter of solid operating results and strong cash flow

for the partnership, enabling us to increase our quarterly cash

distribution to our partners by five percent over the second quarter of

last year,” said Richard H. Bachmann,

president and chief executive officer of the general partner of DEP. “In

fact this quarter the partnership recorded its highest net income and

distributable cash flow since its IPO, supported by increases in

distributable cash flow from our Acadian natural gas pipeline system and

NGL storage business as well as lower sustaining capital expenditures.”

Revenue increased 52 percent to $360.4 million for the second quarter of

2008 from $236.9 million for the second quarter of 2007. Gross operating

margin for the second quarter of 2008 decreased to $18.7 million from

$21.5 million reported in the second quarter of 2007. Earnings before

interest, taxes, depreciation, amortization and accretion (“EBITDA”)

was $15.3 million for the second quarter of this year, a 30 percent

increase over $11.7 million for the second quarter of last year. Gross

operating margin and EBITDA are non-GAAP financial measures that are

defined and reconciled later in this press release to their most

directly comparable GAAP financial measure.

Review of Segment Quarterly Performance

DEP owns a 66 percent equity interest in the assets described below, and

Enterprise Products Operating LLC (“EPO”)

owns the remaining 34 percent equity interest. EPO is a wholly-owned

subsidiary of Enterprise Products Partners L.P. and owns the general

partner of DEP. EPO’s interest in DEP’s

subsidiaries is accounted for as “Parent

Interest” in a manner similar to minority

interest. However, from a gross operating margin standpoint, the amounts

shown are on a 100 percent basis before the deduction for Parent

Interest.

NGL & Petrochemical Storage Services –

Gross operating margin for the second quarter of 2008 decreased to $3.5

million from $10.7 million in the second quarter of 2007. This decrease

was due primarily to an operational measurement loss of $5.7 million in

the second quarter of 2008 compared to a $2.8 million operational

measurement gain recorded in the second quarter of 2007. In the

partnership agreement for Mont Belvieu Caverns, LLC, operational

measurement gains and losses are allocated to EPO through its Parent

Interest. As such, EPO is required to contribute cash to Mont Belvieu

Caverns for operational measurement losses and is entitled to receive

distributions for operational measurement gains. Net of measurement

gains and losses allocated to EPO, gross operating margin was $9.2

million for the second quarter of 2008 compared to $7.9 million for the

second quarter of 2007. Storage revenues increased quarter-to-quarter as

a result of higher storage fees and volumes. The increase in revenues

was partially offset by higher operating expenses.

Onshore Natural Gas Pipelines & Services –

Gross operating margin for the second quarter of 2008 increased 211

percent to $6.8 million from $2.2 million in the second quarter of 2007.

This increase was primarily due to improved natural gas sales margins

and higher sales volumes on the Acadian gas system. Total natural gas

volumes, which include both sales and transportation volumes, were 731

billion British thermal units per day (“BBtus/d”)

this quarter compared to 746 BBtus/d in the second quarter of 2007.

Petrochemical Pipeline Services – This

segment generated gross operating margin of $3.4 million in the second

quarter of 2008 compared to $3.3 million in the second quarter of 2007.

Higher transportation volumes on the Lou-Tex propylene pipeline were the

primary reason for the increase in gross operating margin. Total

petrochemical transportation volumes increased 11 percent to an average

41,000 barrels per day (“BPD”)

for the second quarter of 2008, from an average of 37,000 BPD for the

second quarter last year.

NGL Pipeline Services – Gross

operating margin for the second quarter of 2008 was $5.0 million

compared to $5.3 million in the second quarter of 2007. Dedicated

natural gas liquid (“NGL”)

volumes averaged 73,000 BPD in the second quarter of 2008 compared to

74,000 BPD in the second quarter last year.

Capitalization

Total debt outstanding at June 30, 2008 was $208.0 million. DEP had

total liquidity of approximately $104 million from unrestricted cash and

availability under the partnership’s $300 million credit facility.

Management for DEP will discuss second quarter results during the

Enterprise Products Partners L.P. earnings conference call with analysts

and investors scheduled for 9:00 a.m. CDT today. The call will be

broadcast live over the Internet and may be accessed by visiting the

partnership’s website at www.deplp.com.

Basis of Presentation of Financial

Information

The partnership’s results of operations for

2007 are reported separately from those of its predecessor, Duncan

Energy Partners Predecessor, following completion of the partnership’s

initial public offering (“IPO”)

on February 5, 2007 (effective February 1, 2007 for financial accounting

and reporting purposes). We acquired substantially all of the assets and

operations of Duncan Energy Partners Predecessor that are included in

our consolidated financial statements.

There were a number of agreements and other items that went into effect

at the time of our IPO that affect the comparability of the partnership’s

operating results for the six months ended June 30, 2008 with the

combined historical operating results of the partnership and Duncan

Energy Partners Predecessor for the six months ended June 30, 2007.

These agreements and other items include:

• The fees Mont Belvieu Caverns, LLC (“Mont Belvieu Caverns”) charges

  EPO for underground storage services increased to market rates as a

  result of new agreements.

• Storage well measurement gains and losses are retained by EPO rather

  than being allocated to Mont Belvieu Caverns.

• Mont Belvieu Caverns makes a special allocation of operational

  measurement gains and losses to EPO, which results in such gains and

  losses not impacting the net income or loss of Mont Belvieu Caverns.

  However, operational measurement gains and losses continue to be a

  component of gross operating margin.

• Transportation revenues recorded by Enterprise Lou-Tex Propylene

  Pipeline L.P. and Sabine Propylene Pipeline L.P. decreased due to the

  assignment of certain exchange agreements to us by EPO.

Use of Non-GAAP Financial Measures

This press release and accompanying schedules include non-GAAP financial

measures of gross operating margin, distributable cash flow, and EBITDA.

The press release provides reconciliations of these non-GAAP financial

measures to their most directly comparable financial measure 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 as alternatives to GAAP

measures such as net income, operating income, net cash flows provided

from operating activities or any other GAAP measure of liquidity or

financial performance.

Gross operating margin – We evaluate segment performance based on

the non-GAAP financial measure of gross operating margin. Gross

operating margin (either in total or by individual segment) is an

important performance measure of the core profitability of our

operations. This measure forms the basis of our internal financial

reporting and is used by senior management in deciding how to allocate

capital resources among business segments. We believe that investors

benefit from having access to the same financial measures that our

management uses in evaluating segment results. The GAAP measure most

directly comparable to total segment gross operating margin is operating

income. Our non-GAAP financial measure of total segment gross operating

margin should not be considered as an alternative to GAAP operating

income.

We define total (or combined) segment gross operating margin as

operating income before: (i) depreciation, amortization and accretion

expense; (ii) gains and losses on the sale of assets; and (iii) general

and administrative expenses. Gross operating margin is exclusive of

other income and expense transactions, provision for income taxes,

extraordinary charges, Parent interest in income of subsidiaries and the

cumulative effect of changes in accounting principles. Gross operating

margin by segment is calculated by subtracting segment operating costs

and expenses (net of the adjustments noted above) from segment revenues,

with both segment totals before the elimination of any intersegment and

intrasegment transactions. In accordance with GAAP, intercompany

accounts and transactions are eliminated in consolidation.

We include equity earnings from Evangeline Gas Pipeline Company L.P. and

Evangeline Gas Corp. (collectively, “Evangeline”) in our measurement of

segment gross operating margin and operating income. Our equity

investment in Evangeline is a vital component of our business strategy

and important to the operations of our Acadian natural gas system. This

method of operation enables us to achieve favorable economies of scale

relative to the level of investment and business risk assumed versus

what we could accomplish on a stand-alone basis. Evangeline performs

complementary roles to the other business operations of Acadian Gas, LLC

(“Acadian Gas”). As circumstances dictate, we may increase our ownership

interest in Evangeline or make other equity method investments.

Distributable cash flow – We define distributable cash flow for

Duncan Energy Partners as net income or loss adjusted for: (i) the

addition of depreciation, amortization and accretion expense; (ii) the

addition of cash distributions received from Evangeline, if any, less

equity in the earnings of Evangeline; (iii) the subtraction of

sustaining capital expenditures; (iv) the addition of losses or

subtraction of gains relating to the sale of assets; (v) the addition of

cash proceeds from the sale of assets; (vi) the addition of losses or

subtraction of gains on the monetization of financial instruments

recorded in accumulated other comprehensive income, if any, less related

amortization of such amounts to earnings; (vii) the addition or

subtraction of other miscellaneous non-cash amounts (as applicable) that

affect net income or loss for the period; and (viii) the subtraction of

Parent interest in the foregoing adjustments. Sustaining capital

expenditures are capital expenditures (as defined by GAAP) resulting

from improvements to and major renewals of existing assets. Senior

management compares the distributable cash flow we generate to the cash

distributions we expect to pay our partners. Using this data, management

computes our distribution coverage ratio.

Distributable cash flow is also an important non-GAAP financial measure

for our limited partners since it serves as an indicator of our success

in providing a cash return on investment. Specifically, this financial

measure indicates to investors whether or not we are generating cash

flows at a level that can sustain or support an increase in our

quarterly cash distribution. Distributable cash flow is also a

quantitative standard used by the investment community with respect to

publicly traded partnerships because the value of a partnership unit is

in part measured by its yield (which in turn is based on the amount of

cash distributions a partnership pays to a unitholder). The GAAP measure

most directly comparable to distributable cash flow is net cash flows

provided by operating activities.

EBITDA – We define EBITDA as net income or loss plus interest

expense, provision for income taxes and depreciation, accretion and

amortization expense, with all such adjustments to net income or loss

determined net of the Parent Interest in subsidiary amounts. EBITDA is

commonly used as a supplemental financial measure by management and by

external users of our financial statements, such as investors,

commercial banks, research analysts and rating agencies, to assess: (i)

the financial performance of our assets without regard to financing

methods, capital structures or historical cost basis; (ii) the ability

of our assets to generate cash sufficient to pay interest cost and

support our indebtedness; and (iii) the viability of projects and the

overall rates of return on alternative investment opportunities. Since

EBITDA excludes some, but not all, items that affect net income or loss

and because these measures may vary among other companies, the EBITDA

data presented in the press release may not be comparable to similarly

titled measures of other companies. The GAAP measure most directly

comparable to EBITDA is net cash flows provided by operating activities.

Company Information and Use of Forward

Looking Statements

Duncan Energy Partners is a publicly traded partnership that provides

midstream energy services, including gathering, transportation,

marketing and storage of natural gas, in addition to transportation and

storage of NGLs and petrochemicals. Duncan Energy Partners’ assets,

located primarily in the Gulf Coast region of Texas and Louisiana,

include interests in more than 1,000 miles of natural gas pipelines with

a transportation capacity of approximately 1 Bcf per day; nearly 600

miles of NGL and petrochemical pipelines featuring access to the world’s

largest fractionation complex at Mont Belvieu, Texas; and 33 underground

salt dome caverns with about 100 MMBbls of NGL storage capacity.

This press release contains various forward-looking statements and

information that are based on Duncan Energy Partners’ beliefs and those

of its general partner, as well as assumptions made by and information

currently available to Duncan Energy Partners. When used in this press

release, words such as “anticipate,” “project,” “expect,” “plan,”

“goal,” “forecast,” “intend,” “could,” “should,”

“will,” “believe,”

“may,” “potential”

and similar expressions and statements regarding the plans and

objectives of Duncan Energy Partners for future operations, are intended

to identify forward-looking statements. Although Duncan Energy Partners

and its general partner believe that such expectations reflected in such

forward-looking statements are reasonable, neither Duncan Energy

Partners nor its general partner can give assurances that such

expectations will prove to be correct. Such statements are subject to a

variety of risks, uncertainties and assumptions. If one or more of these

risks or uncertainties materialize, or if underlying assumptions prove

incorrect, Duncan Energy Partners’ actual results may vary materially

from those it anticipated, estimated, projected or expected. Among the

key risk factors that may have a direct bearing on Duncan Energy

Partners’ results of operations and financial condition are:

• fluctuations in oil, natural gas and NGL prices and production due to

  weather and other natural and economic forces;

• the effects of the combined company’s debt level on its future

  financial and operating flexibility;

• a reduction in demand for its products by the petrochemical, refining

  or heating industries;

• a decline in the volumes of NGLs delivered by its facilities;

• the failure of its credit risk management efforts to adequately

  protect it against customer non-payment;

• terrorist attacks aimed at its facilities; and,

• the failure to successfully integrate our operations with companies,

  if any that we may acquire in the future.

Duncan Energy Partners has no obligation to publicly update or revise

any forward-looking statement, whether as a result of new information,

future events or otherwise.

															Exhibit A
Duncan Energy Partners L.P. Statements of Consolidated Operations – UNAUDITED For the Three Months Ended June 30, 2008 and 2007; Six Months Ended June 30, 2008; Five Months Ended June 30, 2007; and One Month Ended January 31, 2007 (Dollars in thousands, except per unit amounts)
		Duncan Energy Partners													Duncan Energy Partners Predecessor
		For the Three							For the Six			For the Five			For the One Month Ended
		Months Ended June 30,							Months Ended June 30,
			2008			2007				2008			2007		January 31, 2007
Revenue		$	360,385		$	236,896			$	622,174		$	370,770		$	66,674
Costs and expenses:
Operating costs and expenses			350,456			222,711				595,950			347,142			61,187
General and administrative			1,594			1,026				3,719			1,383			477
Total costs and expenses			352,050			223,737				599,669			348,525			61,664
Equity in income of Evangeline			228			114				386			160			25
Operating income			8,563			13,273				22,891			22,405			5,035
Other income (expense):
Interest expense			(2,700	)		(2,410	)			(5,468	)		(3,541	)		—
Interest income			158			229				258			373			—
Total other expense			(2,542	)		(2,181	)			(5,210	)		(3,168	)		—
Income before provision for income taxes and parent interest in income of subsidiaries			6,021			11,092				17,681			19,237			5,035
Provision for income taxes			(16	)		59				(28	)		(114	)		—
Income before parent interest in income of subsidiaries			6,005			11,151				17,653			19,123			5,035
Parent interest in income of subsidiaries (see Exhibit E)			599			(6,603	)			(5,017	)		(10,652	)		—
Net income		$	6,604		$	4,548			$	12,636		$	8,471		$	5,035
Allocation of net income to:
Limited partners		$	6,472		$	4,457			$	12,383		$	8,302			n/a
General partner		$	132		$	91			$	253		$	169			n/a
Per unit data (fully diluted):
Net income per unit		$	0.32		$	0.22			Duncan Energy Partners L.P. Randy Burkhalter, 713-381-6812 Investor Relations or Rick Rainey, 713-381-3635 Media Relations Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89 Get Unlimited Organic Website Traffic to your Website  TheNFG.com now offers Organic Lead Generation & Traffic Solutions