Regency Energy Partners LP ( RGP ) raised its fourth-quarter 2013 cash distribution 1.1% sequentially and 3.3% year over year to 47.5 cents per common unit ($1.90 per unit annualized).
Regency Energy added that the new distribution will be paid on Feb 14, 2014 to unitholders of record as of Feb 7, 2014.
The distribution hike reflects the partnership's continued strong performance, backed by strong operating results, good investments and a diligent execution of its strategic plan.
Of late, Regency has been focusing on both organic and inorganic growth. In 2013, Regency acquired natural gas acreage in the Permian Basin for $1.5 billion. On the organic route, Regency incurred $690 million of growth capital expenditures in the first nine months of 2013, with $378 million spent for the Gathering and Processing segment, $207 million for the Contract Services segment, and $105 million for the NGL Services segment.
Overall in 2013, Regency expects to invest approximately $870 million in growth capital expenditures. Of this, $500 million will be allotted to the Gathering and Processing segment for expenditures related to growth projects, $150 million will be allotted to the NGL Services segment and $220 million to the Contract Services segment.
Regency is a growth-oriented master limited partnership engaged in the gathering and processing, compression, treating and transportation of natural gas and the transportation, fractionation and storage of natural gas liquids. Regency's general partner is owned by Energy Transfer Equity, L.P. ( ETE ).
Regency Energy currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.