FAS 133 implementation is required for fiscal years beginning after June 15, 2000. The Partnership does not meet the detailed requirements of FAS 133 to treat its forward purchase contracts or other derivative instruments 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 non-recurring charges for the first six months of the fiscal year related to the closing down of the natural gas financial trading activities of CEG in the fourth quarter of FY2000. The lower net income reflects the higher depreciation and amortization expense for fiscal 2001 for both the quarter and nine months ended March 31, 2001. This lower net income is due solely 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 470,000 customers with annualized sales of about 330 million retail gallons, doing business in 34 states through approximately 265 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.