(1) Consists of the Company's 49% economic interest in Mont Belvieu Associates,
a general partnership that owns a 50% undivided interest in the NGL
fractionation facilities operated by the Company at Mont Belvieu. The
Company directly owns an additional 12.5% undivided interest in such NGL
fractionation facilities, giving it an effective 37.0% economic interest in
the facilities. The revenues and costs associated with this 12.5% interest
are included in the Company's revenues and operating costs and expenses.
(2) Consists of the Company's 33 1/3% economic interest in Belvieu
Environmental Fuels ("BEF"), a general partnership that owns the MTBE
facility operated by the Company at Mont Belvieu.
(3) Reflects the General Partner's 1% minority interest in the Operating
Partnership's net income.
(4) Net income per Unit is computed by dividing the limited partners' 99%
interest in net income by the number of Units expected to be outstanding at
the closing of this offering.
(5) EBITDA is defined as net income plus depreciation and amortization and
interest expense less equity in income of unconsolidated affiliates. EBITDA
should not be considered as an alternative to net income, operating income,
cash flow from operations or any other measure of financial performance
presented in accordance with generally accepted accounting principles.
EBITDA is not intended to represent cash flow and does not represent the
measure of cash available for distribution, but provides additional
information for evaluating the Company's ability to make the Minimum
Quarterly Distribution. Management uses EBITDA to assess the viability of
projects and to determine overall rate of returns on alternative investment
opportunities. Because EBITDA excludes some, but not all, items that affect
net income and this measure may vary among companies, the EBITDA data
presented above may not be comparable to similarly titled measures of other
(6) Represents the Company's pro rata share of net income plus depreciation and
amortization and interest expense of the unconsolidated affiliates. After
the purchase of the Company's pro rata share of bank debt of BEF and Mont
Belvieu Associates, EBITDA of unconsolidated affiliates will closely
approximate the aggregate cash that the Company will receive from its
investment in BEF and Mont Belvieu Associates.
(7) Production volumes represent average daily production in thousands of
barrels per day. Production volume for fractionation includes gross
production volumes for the NGL fractionation facilities in which the
Company owns an effective 37.0% economic interest. Production volume for
MTBE reflects gross production volumes for the BEF facility in which the
Company owns an undivided 33 1/3% economic interest. MTBE production at
the BEF facility began in 1994.