UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
Commission File Number 33-83618
SELKIRK COGEN PARTNERS, L.P.
(Exact name of Registrant (Guarantor) as specified in its charter)
Delaware 51-0324332
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
SELKIRK COGEN FUNDING CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 51-0354675
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
One Bowdoin Square, Boston, Massachusetts 02114
(Address of principal executive offices, including zip code)
(617) 788-3000
(Registrant's telephone number, including area code)
SECURITIES REGISTERED PURSUANT TO SECTION 12 (b) OR 12 (g) OF THE ACT:
None
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No __
As of May 12, 2000, there were 10 shares of common stock of Selkirk Cogen
Funding Corporation, $1 par value outstanding.
================================================================================
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TABLE OF CONTENTS
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Condensed Consolidated Balance Sheets as of March 31, 2000
and December 31, 1999....................................... 3
Condensed Consolidated Statements of Operations for the three
months ended March 31, 2000 and 1999........................ 4
Condensed Consolidated Statements of Cash Flows for the three
months ended March 31, 2000 and 1999........................ 5
Notes to Condensed Consolidated Financial Statements........ 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations....................................... 8
Liquidity and Capital Resources............................. 10
Item 3. Quantitative and Qualitative Disclosures About Market Risk .. 12
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K............................. 13
SIGNATURES.............................................................. 14
2
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<TABLE>
<CAPTION>
SELKIRK COGEN PARTNERS, L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<S> <C> <C>
(unaudited)
March 31, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents..................................... $ 1,194 $ 1,732
Restricted funds.............................................. 25,972 5,516
Accounts receivable........................................... 20,790 15,505
Due from affiliates........................................... 549 427
Fuel inventory and supplies................................... 6,677 6,831
Other current assets.......................................... 253 195
-------- ---------
Total current assets.................................... 55,435 30,206
Plant and equipment, net......................................... 294,300 297,034
Long-term restricted funds....................................... 28,711 30,217
Deferred financing charges, net.................................. 9,344 9,630
-------- ---------
Total assets $ 387,790 $ 367,087
========= ==========
LIABILITIES AND PARTNERS' DEFICITS
Current liabilities:
Accounts payable............................................. $ 177 $ 2,126
Accrued bond interest payable................................ 8,803 375
Accrued expenses............................................. 13,973 11,389
Due to affiliates............................................ 882 469
Current portion of long-term bonds........................... 7,307 7,307
-------- ---------
Total current liabilities.............................. 31,142 21,666
Long-term liabilities:
Deferred revenue............................................. 5,805 5,981
Other long-term liabilities.................................. 9,310 16,446
Long-term bonds, net of current portion...................... 373,826 373,826
-------- ---------
Total liabilities...................................... 420,083 417,919
Partners' deficits:
General partners' deficits................................... (311) (497)
Limited partners' deficits................................... (31,982) (50,335)
-------- ---------
Total partners' deficits............................... (32,293) (50,832)
-------- ---------
Total liabilities and partners' deficits....... $ 387,790 $ 367,087
========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
3
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<TABLE>
<CAPTION>
SELKIRK COGEN PARTNERS, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(unaudited)
For the Three Months Ended
------------------------------------------
<S> <C> <C>
March 31, March 31,
2000 1999
----------- -----------
Operating revenues:
Electric and steam.................................. $ 48,081 $ 41,236
Gas resale.......................................... 2,365 1,087
---------- -----------
Total operating revenues....................... 50,446 42,323
Cost of revenues....................................... 30,626 25,105
---------- -----------
Gross profit........................................... 19,820 17,218
Other operating expenses:
Administrative services, affiliates................. 687 238
Other general and administrative.................... 374 459
Amortization of deferred financing charges.......... 285 289
---------- -----------
Total other operating expenses................. 1,346 986
---------- -----------
Operating income....................................... 18,474 16,232
Interest (income) expense:
Interest income..................................... (628) (498)
Interest expense.................................... 8,429 8,534
---------- -----------
Total interest expense, net.................... 7,801 8,036
---------- -----------
Income before cumulative effect of a
change in accounting principle..................... 10,673 8,196
Cumulative effect of a change in
accounting principle............................... 7,866 ---
---------- -----------
Net income............................................ $ 18,539 $ 8,196
========== ===========
Net income allocation:
General partners................................... $ 186 $ 82
Limited partners................................... 18,353 8,114
---------- -----------
Total......................................... $ 18,539 $ 8,196
========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
SELKIRK COGEN PARTNERS, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
For the Three Months Ended
--------------------------------------
<S> <C> <C>
March 31, March 31,
2000 1999
--------- ---------
Net cash provided by operating activities...................... $ 17,988 $ 16,552
Cash flows from investing activities:
Plant and equipment additions............................... (375) (45)
--------- ----------
Net cash used in investing activities................. (375) (45)
Cash flows from financing activities:
Restricted funds............................................ (18,151) (16,945)
--------- ----------
Net cash used in financing activities................. (18,151) (16,945)
Net decrease in cash and cash equivalents...................... (538) (438)
Cash and cash equivalents, beginning of period................. 1,732 1,839
--------- ----------
Cash and cash equivalents, end of period....................... $ 1,194 $ 1,401
========= ==========
Supplemental cash flow information:
Cash paid for interest...................................... $ --- $ ---
========= ==========
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE>
SELKIRK COGEN PARTNERS, L.P.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include
Selkirk Cogen Partners, L.P. and its wholly-owned subsidiary, Selkirk Cogen
Funding Corporation, (collectively the "Partnership"). All significant
intercompany accounts and transactions have been eliminated.
The condensed consolidated financial statements for the interim periods
presented are unaudited and have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission. The information furnished
in the condensed consolidated financial statements reflects all normal recurring
adjustments which, in the opinion of management, are necessary for a fair
presentation of such financial statements. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to rules and regulations applicable to interim financial statements.
These condensed consolidated financial statements should be read in conjunction
with the audited consolidated financial statements included in the Partnership's
December 31, 1999 Annual Report on Form 10-K.
Note 2. Cumulative Effect of a Change in Accounting Principle
Effective January 1, 2000, the Partnership changed its method of accounting for
major maintenance and overhaul costs. Beginning January 1, 2000, the cost of
major maintenance and overhauls has been accounted for as incurred. Previously,
the estimated cost of major maintenance and overhauls was accrued in advance in
a systematic and rational manner over the period between major maintenance and
overhauls. The change resulted in the Partnership recording income of
approximately $7.9 million, reflecting the cumulative effect of the change in
accounting principle. The effect on results of operations for the three months
ended March 31, 2000 was immaterial and the proforma effect on results of
operations for the three months ended March 31, 1999 was immaterial.
Note 3. New Accounting Pronouncements
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative
Instruments and Hedging Activities" (as amended by SFAS No. 137). SFAS No. 133
establishes
6
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accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts, and for hedging activities.
SFAS No. 133 is effective for the Partnership's fiscal years beginning on
January 1, 2001. Management has not completed an evaluation of the impact on the
Partnership's consolidated financial statements of adopting this new standard.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
--------------------------------------------------
Results of Operations
Three Months Ended March 31, 2000 Compared to the Three Months Ended March 31,
1999
Net income for the quarter ended March 31, 2000 was approximately $18.5 million
as compared to approximately $8.2 million for the corresponding period in the
prior year. The $10.3 million increase in net income is primarily due to higher
electric and steam prices and the Partnership changing its method of accounting
for major maintenance and overhaul costs.
Effective January 1, 2000, the Partnership changed its method of accounting for
major maintenance and overhaul costs. Beginning January 1, 2000, the cost of
major maintenance and overhauls has been accounted for as incurred. Previously,
the estimated cost of major maintenance and overhauls was accrued in advance in
a systematic and rational manner over the period between major maintenance and
overhauls. The change resulted in the Partnership recording income of
approximately $7.9 million, reflecting the cumulative effect of the change in
accounting principle. The effect on results of operations for the quarter ended
March 31, 2000 was a reduction of operating and maintenance expenses of
approximately $0.4 million.
Total revenues for the quarter ended March 31, 2000 were approximately $50.4
million as compared to approximately $42.3 million for the corresponding period
in the prior year.
<TABLE>
<CAPTION>
Electric Revenues (dollars and kWh's in millions):
- -------------------------------------------------
For the Three Months Ended
March 31, 2000 March 31, 1999
------------------------------------ -------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Dollars kWh's Capacity Dispatch Dollars kWh's Capacity Dispatch
------- ----- -------- -------- ------- ----- -------- --------
Unit 1 12.5 151.5 89.27% 95.24% 11.4 152.7 90.65% 99.03%
Unit 2 34.4 472.2 81.58% 94.96% 29.5 465.8 81.37% 88.80%
</TABLE>
Unit 1 revenues increased approximately $1.1 million for the quarter ended March
31, 2000 as compared to the corresponding period in the prior year. During the
quarter ended March 31, 2000 revenues from Niagara Mohawk Power Corporation
("Niagara Mohawk") and PG&E Energy Trading - Power, L.P. ("PG&E Energy Trading")
were approximately $11.3 million and $1.2 million as compared to approximately
$10.6 million and $0.8 million, respectively for the corresponding period in the
prior year. The increase in Unit 1 revenues was primarily due to higher market
energy prices. During the quarters ended March 31, 2000 and 1999, the
Partnership received Monthly Contract
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Payments and delivered energy up to the monthly contract quantity to Niagara
Mohawk ("Contract Energy"). During the quarter ended March 31, 2000, Contract
Energy was sold at market prices established by the New York Independent System
Operator whereas, during the corresponding period in the prior year, Contract
Energy was sold at a proxy market price based upon Niagara Mohawk's tariff for
power purchases from Qualifying Facilities. During the months of January and
March 2000, the Partnership sold the energy produced by Unit 1 in excess of the
Contract Energy ("Unit 1 Excess Energy") to both Niagara Mohawk and PG&E Energy
Trading and during the month of February 2000 the Partnership sold all of the
Unit 1 Excess Energy to Niagara Mohawk. During the month of January 1999 the
Partnership sold all of the Unit 1 Excess Energy to Niagara Mohawk and during
the months of February and March 1999 the Partnership sold all of the Unit 1
Excess Energy to PG&E Energy Trading. Unit 1 Excess Energy delivered to Niagara
Mohawk and PG&E Energy Trading was sold at negotiated market prices. Amortized
deferred revenues of approximately $0.2 million are also included in revenues
from Niagara Mohawk for the quarters ended March 31, 2000 and 1999.
Unit 2 revenues increased approximately $4.9 million for the quarter ended March
31, 2000 as compared to the corresponding period in the prior year. During the
quarter ended March 31, 2000 all of the Unit 2 revenues were from Consolidated
Edison Company of New York, Inc. ("Con Edison") whereas, during the
corresponding period in the prior year, revenues from Con Edison and PG&E Energy
Trading were approximately $29.2 million and $0.3 million, respectively. The
increase in revenues from Unit 2 was primarily due to the increase in the Con
Edison contract price for delivered energy resulting from higher index fuel
prices. During the quarter ended March 31, 1999, revenues from PG&E Energy
Trading resulted from the sale of other energy-related products.
Steam revenues for the quarter ended March 31, 2000 were approximately $1.2
million as compared to approximately $0.3 million for the corresponding period
in the prior year. The $0.9 million increase in steam revenues was primarily due
to the increase in the General Electric contract price for delivered steam
resulting from higher index fuel prices. Delivered steam for the quarter ended
March 31, 2000 was approximately 548.0 million pounds as compared to
approximately 409.8 million pounds for the corresponding period in the prior
year.
Gas resale revenues for the quarter ended March 31, 2000 were approximately $2.3
million on sales of approximately 0.8 million MMBtu's as compared to
approximately $1.1 million on sales of approximately 0.6 million MMBtu's for the
corresponding period in the prior year. The $1.2 million increase in gas resale
revenues is primarily due to higher natural gas resale prices. The increase in
natural gas resale prices during the quarter ended March 31, 2000 generally
resulted from higher market pricing for both gas and oil as well as increased
demand for electric generation. Gas resales occurred during periods when Units 1
and 2 were not operating at full capacity.
Cost of revenues for the quarter ended March 31, 2000 was approximately $30.6
million on gas purchases of approximately 7.1 million MMBtu's as compared to
$25.1 million on gas purchases of approximately 6.9 million MMBtu's for the
corresponding period in
9
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the prior year. The largest component of the increase for the quarter ended
March 31, 2000 was fuel costs, which increased approximately $6.1 million from
the corresponding period in the prior year. The increase in the cost of fuel was
primarily due to the higher price of gas under the firm fuel supply agreements
and higher demand costs under the firm fuel transportation agreements. The
elimination of the accrual for major maintenance and overhaul costs during the
quarter ended March 31, 2000 reduced operating and maintenance expenses by
approximately $0.4 million. The Partnership has foreign currency swap agreements
to hedge against future exchange rate fluctuations under fuel transportation
agreements which are denominated in Canadian dollars. During each of the
quarters ended March 31, 2000 and 1999, fuel costs were increased by
approximately $0.6 million as a result of the currency swap agreements.
Total other operating expenses for the quarter ended March 31, 2000 were
approximately $1.3 million as compared to approximately $1.0 million for the
corresponding period in the prior year. The increase in other operating expenses
was primarily due to higher affiliate administrative services. Additionally,
affiliate administrative services during the quarter ended March 31, 1999, were
reduced by the write-off of a reserve of approximately $0.2 million for amounts
no longer claimed by an affiliate.
Net interest expense for the quarter ended March 31, 2000 was approximately $7.8
million as compared to approximately $8.0 million for the corresponding period
in the prior year. The decrease in net interest expense is due to higher
interest income and lower interest expense resulting from the lower principal
balance outstanding.
Liquidity and Capital Resources
Net cash provided by operating activities for the quarter ended March 31, 2000
was approximately $18.0 million as compared to approximately $16.6 million for
the corresponding period in the prior year. Net cash provided by operating
activities primarily represents net income plus the net effect of recurring
changes in cash receipts and disbursements within the Partnership's operating
assets and liability accounts.
Net cash used in investing activities for the quarter ended March 31, 2000 was
approximately $375,000 as compared to approximately $45,000 for the
corresponding period in the prior year. Net cash used in investing activities
primarily represents additions to plant and equipment.
Net cash used in financing activities for the quarter ended March 31, 2000 was
approximately $18.2 million as compared to approximately $16.9 million for the
corresponding period in the prior year. The increase in net cash used in
financing activities for the quarter ended March 31, 2000 was primarily due to
additional cash becoming available to deposit into the Principal Fund. Pursuant
to the Partnership's Depositary and Disbursement Agreement, administered by
Bankers Trust Company, as depositary agent, the Partnership is required to
maintain certain Restricted Funds. Net cash flows used in financing activities
during the quarter ended March 31, 2000 primarily
10
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represent deposits of monies into the Interest Fund and Principal Fund, whereas
during the quarter ended March 31, 1999 monies were only deposited into the
Interest Fund.
In 1994 and 1995 Con Edison claimed the right to acquire that portion of Unit
2's firm natural gas supply not used in operating Unit 2, when Unit 2 is
dispatched off-line or at less than full capability ("non-plant gas"), or
alternatively to be compensated for 100% of the margins derived from non-plant
gas sales. The Con Edison Power Purchase Agreement contains no express language
granting Con Edison any rights with respect to such excess natural gas.
Nevertheless, Con Edison argued that, since payments under the contract include
fixed fuel charges which are payable whether or not Unit 2 is dispatched
on-line, Con Edison is entitled to exercise such rights. The Partnership
vigorously disputes the position adopted by Con Edison, and since the
commencement of Unit 2's operation in 1994, the Partnership has made and
continues to make, from time to time, non-plant gas sales from Unit 2's gas
supply. Although representatives of Con Edison have expressly reserved all
rights that Con Edison may have to pursue its asserted claim with respect to
non-plant gas sales, the Partnership has received no further formal
communication from Con Edison on this subject since 1995. In the event Con
Edison were to pursue its asserted claim, the Partnership would expect to pursue
all available legal remedies, but there can be no certainty that the outcome of
such remedial action would be favorable to the Partnership or, if favorable,
would provide for the Partnership's full recovery of its damages. The
Partnership's cash flows from the sale of electric output would be materially
and adversely affected if Con Edison were to prevail in its claim to Unit 2's
excess natural gas volumes and the related margins.
On July 21, 1998, the New York Public Service Commission ("NYPSC") approved a
plan submitted by Con Edison for the divestiture of certain of its generating
assets (the "Con Edison Divestiture Plan"). Although the Con Edison Divestiture
Plan does not include any proposal by Con Edison for the sale or other
disposition of its contractual obligations for purchasing power from non-utility
generators, like the Partnership, the NYPSC has ordered Con Edison to submit a
report regarding the feasibility of divesting its non-utility generator
entitlements. At this time, the Partnership has insufficient information to
determine whether, in the course of these proceedings at the NYPSC, Con Edison
may seek to assign its rights and obligations under the Con Edison Power
Purchase Agreement with the Partnership to a third party or to take some other
action for the purpose of divesting itself of the power purchase obligations
under such contract; nor can the Partnership evaluate the impact which any such
assignment or other action, if proposed, may ultimately have on the Con Edison
Power Purchase Agreement.
Future operating results and cash flows from operations are also dependent on,
among other things, the performance of equipment; levels of dispatch; the
receipt of certain capacity and other fixed payments; electricity prices;
natural gas resale prices; and fuel deliveries and prices. A significant change
in any of these factors could have a material adverse effect on the results of
operations for the Partnership.
11
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The Partnership believes, based on current conditions and circumstances, it will
have sufficient cash flows from operations to fund existing debt obligations and
operating costs.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements included herein are forward-looking statements concerning the
Partnership's operations, economic performance and financial condition. Such
statements are subject to various risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number of factors,
including general business and economic conditions; the performance of
equipment; levels of dispatch; the receipt of certain capacity and other fixed
payments; electricity prices; natural gas resale prices; fuel deliveries and
prices and whether Con Edison were to prevail in its claim to Unit 2's excess
natural gas volumes, and the related margins.
ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
The Partnership is exposed to market risk from changes in interest rates and
foreign currency exchange rates, which could affect its future results of
operations and financial condition. The Partnership manages its exposure to
these risks through its regular operating and financing activities.
Interest Rates
- --------------
The Partnership's cash and restricted cash are sensitive to changes in interest
rates. Interest rate changes would result in a change in interest income due to
the difference between the current interest rates on cash and restricted cash
and the variable rate that these financial instruments may adjust to in the
future. A 10% decrease in interest rates for the quarter ended March 31, 2000
would have resulted in a negative impact of approximately $63,000 on the
Partnership's net income.
The Partnership's long-term bonds have fixed interest rates. Changes in the
current market rates for the bonds would not result in a change in interest
expense due to the fixed coupon rate of the bonds.
Foreign Currency Exchange Rates
- -------------------------------
The Partnership's currency swap agreements hedge against future exchange rate
fluctuations which could result in additional costs incurred under fuel
transportation agreements which are denominated in a foreign currency. In the
event a counterparty fails to meet the terms of the agreements, the
Partnership's exposure is limited to the currency exchange rate differential.
During the quarter ended March 31, 2000, the currency exchange rate differential
resulted in a negative impact of approximately $580,000 on the Partnership's net
income.
12
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PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
Exhibit No. Description
----------- -----------
18 Letter regarding change in accounting principle
27 Financial Data Schedule
(For electronic filing purposes only)
(B) Reports on Form 8-K
Not applicable.
Omitted from this Part II are items which are not applicable or to which the
answer is negative for the periods covered.
13
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
SELKIRK COGEN PARTNERS, L.P.
JMC SELKIRK, INC.
General Partner
Date: May 15, 2000 /s/ JOHN R. COOPER
------------------
Name: John R. Cooper
Title: Senior Vice President and
Chief Financial Officer
14
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
SELKIRK COGEN FUNDING
CORPORATION
Date: May 15, 2000 /s/ JOHN R. COOPER
-------------------
Name: John R. Cooper
Title: Senior Vice President and
and Chief Financial Officer
15
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EXHIBIT 18
May 15, 2000
Selkirk Cogen Partners, L.P.
One Bowdoin Square
Boston, MA 02114
Dear Sirs/Madams:
At your request, we have read the description included in your Quarterly Report
on Form 10-Q to the Securities and Exchange Commission for the quarter ended
March 31, 2000, of the facts relating to your change during the quarter ended
March 31, 2000 to account for major maintenance and overhauls expenditures at
your power production facility as incurred. We believe, on the basis of the
facts so set forth and other information furnished to us by appropriate
officials of the Partnership, that the accounting change described in your Form
10-Q is to an alternative accounting principle that is preferable under the
circumstances.
We have not audited any financial statements of Selkirk Cogen Partners, L.P.
(the Partnership) as of any date or for any period subsequent to December 31,
1999. Therefore, we are unable to express, and we do not express, an opinion on
the facts set forth in the above-mentioned Form 10-Q, on the related information
furnished to us by officials of the Partnership, or on the financial position,
results of operations, or cash flows of the Partnership as of any date or for
any period subsequent to December 31, 1999.
Yours truly,
/s/ DELOITTE & TOUCHE LLP
16
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 000929540
<NAME> SELKIRK COGEN PARTNERS, L.P.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-2000
<PERIOD-START> Jan-01-2000
<PERIOD-END> Mar-31-2000
<CASH> 27166
<SECURITIES> 0
<RECEIVABLES> 20790
<ALLOWANCES> 0
<INVENTORY> 6677
<CURRENT-ASSETS> 55435
<PP&E> 372065
<DEPRECIATION> 77765
<TOTAL-ASSETS> 387790
<CURRENT-LIABILITIES> 31142
<BONDS> 373826
0
0
<COMMON> 0
<OTHER-SE> (32293)
<TOTAL-LIABILITY-AND-EQUITY> 387790
<SALES> 50446
<TOTAL-REVENUES> 50446
<CGS> 30626
<TOTAL-COSTS> 30626
<OTHER-EXPENSES> 1346
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7801
<INCOME-PRETAX> 10673
<INCOME-TAX> 0
<INCOME-CONTINUING> 10673
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<CHANGES> 7866
<NET-INCOME> 18539
<EPS-BASIC> 0
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</TABLE>
