The Partnership does not meet the detailed requirements of FAS 133 to treat its forward purchase, commodity hedge or physical positions as hedges under this pronouncement and as such any increases or decreases in values, compared to quarter end market prices, are reported as gains or losses in the Partnership s periodic financial statements. The nonrecurring charges applied to the first and second quarter of FY2001 relate to closing down of the natural gas financial trading activities of CEG in the fourth quarter of FY2000. The Partnership will not be recording any losses in the third or fourth quarter of FY2001 from the discontinued operations. The higher net income reflects the higher operating income for the period generated from improved weather related sales volumes. This higher net loss is due primarily to the increase in depreciation and amortization expense for fiscal 2001 over fiscal 2000.
Figures are in thousands of dollars and gallons, except per unit figures.
Cornerstone Propane Partners, L.P. is a master limited partnership. The Partnership is the nation s fifth largest retail propane marketer serving over 480,000 customers with annualized sales of about 330 million retail gallons, doing business in 34 states through approximately 270 customer service centers. Through its North American energy solutions service team, Coast Energy Group, the Partnership also supplies, purchases, processes and markets over 48,000 barrels per day of natural gas liquids to resellers and major end users, an average of approximately 1.0 Bcf per day in natural gas sales and 100,000 barrels per day in crude oil sales in the United States and Canada. The information presented herein may contain certain forward-looking statements within the meaning of the federal securities laws. The Partnership s actual future performance will be affected by a number of factors, risks and uncertainties, including without limitation, weather conditions, regulatory changes, competitive factors, and the operations of vendors, suppliers and customers, many of which are beyond the Partnership s control.