Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Nov. 05, 2013 | Nov. 05, 2013 | |
Common Units | Class B Units | ||
Entity Registrant Name | 'MARKWEST ENERGY PARTNERS L P | ' | ' |
Entity Central Index Key | '0001166036 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 150,492,389 | 15,963,512 |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents ($312 and $31,584, respectively) | $328,153 | $345,756 |
Restricted cash ($0 and $500, respectively) | 10,000 | 25,500 |
Receivables, net ($4,666 and $403, respectively) | 235,630 | 197,977 |
Inventories ($235 and $0, respectively) | 35,514 | 24,633 |
Fair value of derivative instruments | 15,710 | 19,504 |
Deferred income taxes | 15,455 | 5,281 |
Other current assets ($2,584 and $82, respectively) | 39,834 | 34,871 |
Total current assets | 680,296 | 653,522 |
Property, plant and equipment ($1,393,841 and $410,205, respectively) | 7,848,221 | 5,542,316 |
Less: accumulated depreciation ($23,047 and $2,787, respectively) | -807,398 | -602,698 |
Total property, plant and equipment, net | 7,040,823 | 4,939,618 |
Other long-term assets: | ' | ' |
Restricted cash | 10,000 | 10,000 |
Investment in unconsolidated affiliates | 68,193 | 63,054 |
Intangibles, net of accumulated amortization of $269,012 and $221,416, respectively | 891,512 | 855,155 |
Goodwill | 144,856 | 142,174 |
Deferred financing costs, net of accumulated amortization of $23,449 and $18,567, respectively | 53,764 | 51,145 |
Deferred contract cost, net of accumulated amortization of $2,808 and $2,574, respectively | 20,442 | 676 |
Fair value of derivative instruments | 4,555 | 10,878 |
Other long-term assets ($609 and $0, respectively) | 3,275 | 2,140 |
Total assets | 8,917,716 | 6,728,362 |
Current liabilities: | ' | ' |
Accounts payable ($87,209 and $73,865, respectively) | 420,087 | 320,627 |
Accrued liabilities ($116,824 and $109,572, respectively) | 494,626 | 390,178 |
Fair value of derivative instruments | 29,479 | 27,229 |
Total current liabilities | 944,192 | 738,034 |
Deferred income taxes | 260,035 | 189,428 |
Fair value of derivative instruments | 21,044 | 32,190 |
Long-term debt, net of discounts of $7,113 and $8,061, respectively | 3,022,887 | 2,523,051 |
Other long-term liabilities | 152,877 | 134,261 |
Commitments and contingencies (Note 12) | ' | ' |
Redeemable non-controlling interest (Note 3) | 366,238 | ' |
Equity: | ' | ' |
Non-controlling interest in consolidated subsidiaries | 579,967 | 261,463 |
Total equity | 4,150,443 | 3,111,398 |
Total liabilities and equity | 8,917,716 | 6,728,362 |
Common Units | ' | ' |
Equity: | ' | ' |
Common units | 2,968,451 | 2,097,404 |
Total equity | 2,968,451 | 2,097,404 |
Class B Units | ' | ' |
Equity: | ' | ' |
Common units | 602,025 | 752,531 |
Total equity | $602,025 | $752,531 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents | $328,153 | $345,756 |
Restricted cash | 10,000 | 25,500 |
Receivables | 235,630 | 197,977 |
Inventories | 35,514 | 24,633 |
Other current assets | 39,834 | 34,871 |
Property, plant and equipment | 7,848,221 | 5,542,316 |
Accumulated depreciation | 807,398 | 602,698 |
Accumulated amortization, intangibles | 269,012 | 221,416 |
Accumulated amortization, deferred financing costs | 23,449 | 18,567 |
Accumulated amortization, deferred contract cost | 2,808 | 2,574 |
Other long-term assets | 3,275 | 2,140 |
Accounts payable | 420,087 | 320,627 |
Accrued liabilities | 494,626 | 390,178 |
Long-term debt, discounts | 7,113 | 8,061 |
Common Units | ' | ' |
Common units issued (in units) | 147,763 | 127,494 |
Common units outstanding (in units) | 147,763 | 127,494 |
Class B Units | ' | ' |
Common units issued (in units) | 15,964 | 19,954 |
Common units outstanding (in units) | 15,964 | 19,954 |
Total Variable Interest Entities | ' | ' |
Cash and cash equivalents | 312 | 31,584 |
Restricted cash | 0 | 500 |
Receivables | 4,666 | 403 |
Inventories | 235 | 0 |
Other current assets | 2,584 | 82 |
Property, plant and equipment | 1,393,841 | 410,205 |
Accumulated depreciation | 23,047 | 2,787 |
Other long-term assets | 609 | 0 |
Accounts payable | 87,209 | 73,865 |
Accrued liabilities | $116,824 | $109,572 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue: | ' | ' | ' | ' |
Revenue | $450,834 | $316,976 | $1,219,713 | $1,019,709 |
Derivative (loss) gain | -30,318 | -36,400 | -10,804 | 50,952 |
Total revenue | 420,516 | 280,576 | 1,208,909 | 1,070,661 |
Operating expenses: | ' | ' | ' | ' |
Purchased product costs | 191,672 | 119,369 | 499,588 | 386,655 |
Derivative loss (gain) related to purchased product costs | 20,234 | 11,643 | -10,902 | -21,136 |
Facility expenses | 77,542 | 52,883 | 199,849 | 149,438 |
Derivative loss related to facility expenses | 2,332 | 4,028 | 2,800 | 1,136 |
Selling, general and administrative expenses | 26,647 | 21,723 | 77,388 | 68,471 |
Depreciation | 76,323 | 46,554 | 215,902 | 127,472 |
Amortization of intangible assets | 16,003 | 14,988 | 47,925 | 38,280 |
Loss (gain) on disposal of property, plant and equipment | 1,840 | 655 | -35,758 | 2,983 |
Accretion of asset retirement obligations | 160 | 140 | 669 | 536 |
Total operating expenses | 412,753 | 271,983 | 997,461 | 753,835 |
Income from operations | 7,763 | 8,593 | 211,448 | 316,826 |
Other income (expense): | ' | ' | ' | ' |
Equity in earnings from unconsolidated affiliates | 896 | 706 | 1,561 | 2,254 |
Interest income | 27 | 64 | 238 | 295 |
Interest expense | -38,889 | -30,621 | -114,180 | -86,855 |
Amortization of deferred financing costs and discount (a component of interest expense) | -1,584 | -1,428 | -5,198 | -3,943 |
Loss on redemption of debt | ' | ' | -38,455 | ' |
Miscellaneous income, net | 1,504 | 1 | 1,510 | 63 |
(Loss) income before provision for income tax | -30,283 | -22,685 | 56,924 | 228,640 |
Provision for income tax (benefit) expense: | ' | ' | ' | ' |
Current | -2,344 | -17,948 | -10,503 | 2,202 |
Deferred | -7,912 | 10,528 | 23,087 | 39,396 |
Total provision for income tax | -10,256 | -7,420 | 12,584 | 41,598 |
Net (loss) income | -20,027 | -15,265 | 44,340 | 187,042 |
Net (income) loss attributable to non-controlling interest | -3,577 | 925 | 297 | 1,546 |
Net (loss) income attributable to the Partnership's unitholders | ($23,604) | ($14,340) | $44,637 | $188,588 |
Net (loss) income attributable to the Partnership's common unitholders per common unit (Note 14): | ' | ' | ' | ' |
Basic (in dollars per unit) | ($0.17) | ($0.13) | $0.32 | $1.77 |
Diluted (in dollars per unit) | ($0.17) | ($0.13) | $0.29 | $1.49 |
Weighted average number of outstanding common units: | ' | ' | ' | ' |
Basic (in units) | 142,352 | 113,994 | 134,115 | 105,916 |
Diluted (in units) | 142,352 | 113,994 | 153,455 | 126,595 |
Cash distribution declared per common unit (in dollars per unit) | $0.84 | $0.80 | $2.49 | $2.35 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Changes in Equity (USD $) | Total | Common Units | Class B Units | Non-controlling Interest | Redeemable Non-controlling Interest (Temporary Equity) |
In Thousands, unless otherwise specified | |||||
Balance at Dec. 31, 2011 | $1,395,242 | $642,522 | $752,531 | $189 | ' |
Balance (in units) at Dec. 31, 2011 | ' | 94,940 | 19,954 | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' |
Issuance of units in public offerings, net of offering costs | 1,191,066 | 1,191,066 | ' | ' | ' |
Issuance of units in public offerings, net of offering costs (in units) | ' | 22,408 | ' | ' | ' |
Distributions paid | -244,240 | -244,169 | ' | -71 | ' |
Contributions from non-controlling interest | 56,101 | ' | ' | 56,101 | ' |
Share-based compensation activity | 3,517 | 3,517 | ' | ' | ' |
Share-based compensation activity (in units) | ' | 246 | ' | ' | ' |
Excess tax benefits related to share-based compensation | 2,216 | 2,216 | ' | ' | ' |
Deferred income tax impact from changes in equity | -75,248 | -75,248 | ' | ' | ' |
Net income (loss) | 187,042 | 188,588 | ' | -1,546 | ' |
Balance at Sep. 30, 2012 | 2,515,696 | 1,708,492 | 752,531 | 54,673 | ' |
Balance (in units) at Sep. 30, 2012 | ' | 117,594 | 19,954 | ' | ' |
Balance at Dec. 31, 2012 | 3,111,398 | 2,097,404 | 752,531 | 261,463 | ' |
Balance (in units) at Dec. 31, 2012 | ' | 127,494 | 19,954 | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' |
Issuance of units in public offerings, net of offering costs | 1,039,849 | 1,039,849 | ' | ' | ' |
Issuance of units in public offerings, net of offering costs (in units) | 0 | 16,112 | ' | ' | ' |
Conversion of Class B units to common units | ' | 150,506 | -150,506 | ' | ' |
Conversion of Class B units to common units (in shares) | ' | 3,990 | -3,990 | ' | ' |
Distributions paid | -334,126 | -333,946 | ' | -180 | ' |
Contributions from non-controlling interest | 685,219 | ' | ' | 685,219 | ' |
Redeemable non-controlling interest classified as temporary equity | -366,238 | ' | ' | -366,238 | 366,238 |
Share-based compensation activity | 6,697 | 6,697 | ' | ' | ' |
Share-based compensation activity (in units) | ' | 167 | ' | ' | ' |
Excess tax benefits related to share-based compensation | 650 | 650 | ' | ' | ' |
Deferred income tax impact from changes in equity | -37,346 | -37,346 | ' | ' | ' |
Net income (loss) | 44,340 | 44,637 | ' | -297 | ' |
Balance at Sep. 30, 2013 | 366,238 | ' | ' | ' | ' |
Balance at Sep. 30, 2013 | $4,150,443 | $2,968,451 | $602,025 | $579,967 | ' |
Balance (in units) at Sep. 30, 2013 | ' | 147,763 | 15,964 | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $44,340 | $187,042 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 215,902 | 127,472 |
Amortization of intangible assets | 47,925 | 38,280 |
Loss on redemption of debt | 38,455 | ' |
Amortization of deferred financing costs and discount | 5,198 | 3,943 |
Accretion of asset retirement obligations | 669 | 536 |
Amortization of deferred contract cost | 234 | 234 |
Phantom unit compensation expense | 11,907 | 11,579 |
Equity in earnings from unconsolidated affiliate | -1,561 | -2,254 |
Distributions from unconsolidated affiliate | 4,952 | 6,624 |
Unrealized loss (gain) on derivative instruments | 1,222 | -101,815 |
(Gain) loss on disposal of property, plant and equipment | -35,758 | 2,983 |
Deferred income taxes | 23,087 | 39,396 |
Changes in operating assets and liabilities, net of working capital acquired: | ' | ' |
Receivables | -37,491 | 32,248 |
Inventories | -10,881 | 7,590 |
Other current assets | -4,963 | -12,866 |
Accounts payable and accrued liabilities | 29,664 | 36,837 |
Other long-term assets | -21,135 | -676 |
Other long-term liabilities | 18,893 | 8,631 |
Net cash provided by operating activities | 330,659 | 385,784 |
Cash flows from investing activities: | ' | ' |
Restricted cash | 15,500 | 1,003 |
Capital expenditures | -2,176,719 | -1,239,705 |
Investment in unconsolidated affiliates | -8,530 | -839 |
Acquisition of business, net of cash acquired | -225,210 | -506,797 |
Proceeds from disposal of property, plant and equipment | 208,652 | 589 |
Net cash flows used in investing activities | -2,186,307 | -1,745,749 |
Cash flows from financing activities: | ' | ' |
Proceeds from public equity offerings, net | 1,039,849 | 1,191,066 |
Proceeds from Credit Facility | ' | 511,100 |
Payments of Credit Facility | ' | -577,100 |
Proceeds from long-term debt | 1,000,000 | 742,613 |
Payments of long-term debt | -501,112 | ' |
Payments of premiums on redemption of long-term debt | -31,516 | ' |
Payments for debt issuance costs, deferred financing costs and registration costs | -14,046 | -14,184 |
Contributions from non-controlling interest | 685,219 | 56,101 |
Payments of SMR liability | -1,661 | -1,525 |
Cash paid for taxes related to net settlement of share-based payment awards | -5,212 | -8,061 |
Excess tax benefits related to share-based compensation | 650 | 2,216 |
Payment of distributions to common unitholders | -333,946 | -244,169 |
Payment of distributions to non-controlling interest | -180 | -71 |
Net cash flows provided by financing activities | 1,838,045 | 1,657,986 |
Net (decrease) increase in cash and cash equivalents | -17,603 | 298,021 |
Cash and cash equivalents at beginning of year | 345,756 | 114,332 |
Cash and cash equivalents at end of period | $328,153 | $412,353 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization and Basis of Presentation | ' |
Organization and Basis of Presentation | ' |
1. Organization and Basis of Presentation | |
MarkWest Energy Partners, L.P. was formed in 2002 as a Delaware limited partnership. The Partnership is engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of NGLs; and the gathering and transportation of crude oil. The Partnership has a leading presence in many unconventional gas plays including the Marcellus Shale, Utica Shale, Huron/Berea Shale, Haynesville Shale, Woodford Shale and Granite Wash formation. | |
These unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the SEC for interim financial reporting. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Partnership’s consolidated financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2012. The Marcellus segment was formerly known as the Liberty segment. In management’s opinion, the Partnership has made all adjustments necessary for a fair presentation of its results of operations, financial position and cash flows for the periods shown. These adjustments are of a normal recurring nature. Finally, results for the three and nine months ended September 30, 2013 are not necessarily indicative of results for the full year 2013 or any other future period. | |
The Partnership’s unaudited condensed consolidated financial statements include all majority-owned or majority-controlled subsidiaries. In addition, MarkWest Utica EMG, L.L.C. and its subsidiaries (“MarkWest Utica EMG”), a VIE for which the Partnership has been determined to be the primary beneficiary, is included in the condensed consolidated financial statements (see Note 3). All intercompany investments, accounts and transactions have been eliminated. The Partnership’s investments in MarkWest Pioneer, L.L.C. (“MarkWest Pioneer”) and Centrahoma Processing, LLC (“Centrahoma”), in which the Partnership exercises significant influence but does not control and is not the primary beneficiary, are accounted for using the equity method. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
2. Recent Accounting Pronouncements | |
In December 2011, the FASB amended the accounting guidance for balance sheet offsetting for financial assets and financial liabilities. The amended guidance is intended to help investors and other financial statement users to better assess the effect or potential effect of offsetting arrangements on a company’s financial position and provides for increased disclosures. The amended guidance became effective for the Partnership retrospectively as of January 1, 2013. Except for additional disclosures included in Note 6 related to our master netting arrangements, the adoption of the amended guidance did not have a material effect on the Partnership’s condensed consolidated financial statements. |
Variable_Interest_Entity
Variable Interest Entity | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Variable Interest Entities | ' | |||||||||||||||||||
Variable Interest Entity | ' | |||||||||||||||||||
3. Variable Interest Entity | ||||||||||||||||||||
Variable Interest Entity MarkWest Utica EMG | ||||||||||||||||||||
In February 2013, the Partnership and EMG Utica, LLC (“EMG Utica”) (together the “Members”) entered into the Amended and Restated Limited Liability Company Agreement of MarkWest Utica EMG (the “Amended Utica LLC Agreement”) which replaced the original agreement discussed in Note 4 to the Consolidated Financial Statements included in Item 8 of the Partnership’s Form 10-K for the year ended December 31, 2012. Pursuant to the Amended Utica LLC Agreement, the aggregate funding commitment of EMG Utica has increased from $500 million to $950 million (the “Minimum EMG Investment”). As part of this commitment, EMG Utica was required to fund, as needed, all capital required for MarkWest Utica EMG until such time as EMG Utica has contributed aggregate capital equal to $750 million (the “Tier 1 EMG Contributions”). Following the funding of the Tier 1 EMG Contributions, the Partnership had the one time right to elect to fund up to 60% of all capital required for MarkWest Utica EMG until such time as EMG Utica has contributed aggregate capital equal to the Minimum EMG Investment. The Partnership elected not to fund the 60% and therefore EMG Utica was required to fund all capital until the Minimum EMG Investment was satisfied which occurred in May 2013. As EMG Utica has funded the Minimum EMG Investment, the Partnership will be required to fund, as needed, 100% of future capital for MarkWest Utica EMG until such time as the aggregate capital that has been contributed by the Partnership and EMG Utica equals $2 billion. After such time, and until such time as the investment balances of the Partnership and EMG Utica are in the ratio of 70% and 30%, respectively (such time being referred to as the “Second Equalization Date”), EMG Utica will have the right, but not the obligation, to fund up to 10% of each capital call for MarkWest Utica EMG, and the Partnership will be required to fund all remaining capital not elected to be funded by EMG Utica. After the Second Equalization Date, the Partnership and EMG Utica will have the right, but not the obligation, to fund its pro rata portion (based on the respective investment balances) of any additional required capital and may also fund additional capital which the other party elects not to fund. As of September 30, 2013, the Partnership has contributed $279.9 million, net of distributions related to temporary contributions discussed below, to MarkWest Utica EMG. | ||||||||||||||||||||
Under the Amended Utica LLC Agreement, after EMG Utica has contributed more than $500 million to MarkWest Utica EMG, and prior to December 31, 2016, EMG Utica’s investment balance will also be increased by a quarterly special non-cash allocation of income (“Preference Amount”) that is based upon the amount of capital contributed by EMG Utica in excess of $500 million. No Preference Amount will accrue to EMG Utica’s investment balance after December 31, 2016. EMG Utica received a special non-cash allocation of income of approximately $8.3 million and $14.7 million for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||||||
If the Partnership’s investment balance does not equal at least 51% of the aggregate investment balances of both Members as of December 31, 2016, then EMG Utica may require that the Partnership purchase membership interests from EMG Utica so that, following the purchase, the Partnership’s investment balance equals 51% of the aggregate investment balances of the Members. The purchase price payable would equal the investment balance associated with the membership interests so acquired from EMG Utica. If EMG Utica makes this election, the Partnership would be required to purchase the membership interests on or prior to March 1, 2017, but effective as of January 1, 2017. The amount of non-controlling interest subject to the redemption option as of September 30, 2013 is reported as redeemable non-controlling interest in the mezzanine equity section of our Condensed Consolidated Balance Sheets. | ||||||||||||||||||||
Under the Amended Utica LLC Agreement, the Partnership will continue to receive 60% of cash generated by MarkWest Utica EMG that is available for distribution until the earlier of December 31, 2016 and the date on which the Partnership’s investment balance equals 60% of the aggregate investment balances of the Partnership and EMG Utica. After the earlier to occur of those dates, cash generated by MarkWest Utica EMG that is available for distribution will be allocated to the Partnership and EMG Utica in proportion to their respective investment balances. | ||||||||||||||||||||
In contemplation of executing the Amended Utica LLC Agreement, the Partnership and EMG Utica had executed an amendment to the original agreement in January 2013 that obligated the Partnership to temporarily fund MarkWest Utica EMG while EMG Utica completed efforts to raise additional capital to fund its remaining $150 million capital commitment under the original agreement. In February 2013, the Partnership contributed approximately $76.2 million to MarkWest Utica EMG and subsequently received a distribution of $61.2 million as reimbursement for the temporary funding. The remaining $15 million was retained by MarkWest Utica EMG and is treated as a capital contribution from the Partnership under the terms of the Amended Utica LLC Agreement. | ||||||||||||||||||||
The Partnership has determined that MarkWest Utica EMG is a VIE primarily due to MarkWest Utica EMG’s inability to fund its planned activities without additional subordinated financial support. The Partnership has concluded that it is the primary beneficiary of MarkWest Utica EMG. As the primary beneficiary of MarkWest Utica EMG, the Partnership consolidates the entity and recognizes non-controlling interest and redeemable non-controlling interest. The Partnership’s decision to consolidate MarkWest Utica EMG is evaluated on a quarterly basis based on the capital structure and rights and obligations of the respective members. | ||||||||||||||||||||
The assets of MarkWest Utica EMG are the property of the entity and are not available to the Partnership for any other purpose, including as collateral for its secured debt (see Notes 10 and 16). MarkWest Utica EMG’s asset balances can only be used to settle its own obligations. The liabilities of MarkWest Utica EMG do not represent additional claims against the Partnership’s general assets, and the creditors or beneficial interest holders of MarkWest Utica EMG do not have recourse to the general credit of the Partnership. The Partnership’s maximum exposure to loss as a result of its involvement with MarkWest Utica EMG includes its equity investment, any additional capital contribution commitments and any operating expense incurred by the subsidiary operator in excess of its compensation received for the performance of the operating services. Other than temporary funding due to the timing of the administrative process associated with capital calls in the beginning of 2013, the Partnership did not provide any financial support to MarkWest Utica EMG that it was not contractually obligated to provide during the nine months ended September 30, 2013 and 2012. The Partnership was reimbursed for its temporary funding except for $15 million that was retained and treated as a capital contribution from the Partnership as discussed above. | ||||||||||||||||||||
The results of operations of MarkWest Utica EMG and its subsidiaries are shown separately as the Utica segment (see Note 15). | ||||||||||||||||||||
MarkWest Pioneer — Restatement | ||||||||||||||||||||
MarkWest Pioneer is the owner and operator of the Arkoma Connector Pipeline. The Partnership and Arkoma Pipeline Partners, LLC share the equity interests in MarkWest Pioneer equally (50% and 50%). As discussed in Note 4 to the Consolidated Financial Statements in Item 8 of the Partnership’s Form 10-K for the fiscal year ended December 31, 2012, the Partnership had determined that MarkWest Pioneer was a VIE and the Partnership was the primary beneficiary. Therefore, MarkWest Pioneer has historically been included as a consolidated subsidiary by the Partnership. Based on further consideration of the facts and circumstances, MarkWest Pioneer should not have been consolidated and should have been accounted for under the equity method since the Partnership sold 50% of its interests to Arkoma Pipeline Partners, L.L.C. in 2009. Under the equity method, the Partnership would have recognized an impairment of its investment in MarkWest Pioneer of approximately $39.2 million ($35.4 million, net of provision for income tax) in the year ended December 31, 2009. | ||||||||||||||||||||
The Partnership determined that the consolidation error and impairment were immaterial to the prior periods included in the accompanying Condensed Consolidated Financial Statements. Correcting the cumulative effect of the error in the three months ended September 30, 2013, could have had a significant effect on the results of operations for the full year, therefore, the Partnership has restated the accompanying Condensed Consolidated Balance Sheet as of December 31, 2012 (including the parenthetical disclosure of VIE balances), the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2012, and the Condensed Consolidated Statement of Cash Flows and Condensed Consolidated Statement of Changes in Equity for the nine months ended September 30, 2012. The impact of the misstatement is shown in the tables below (in thousands). | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Balance Sheet | As previously | As restated | ||||||||||||||||||
reported | ||||||||||||||||||||
Cash and cash equivalents | $ | 347,899 | $ | 345,756 | ||||||||||||||||
Receivables, net | 198,769 | 197,977 | ||||||||||||||||||
Other current assets | 35,053 | 34,871 | ||||||||||||||||||
Total current assets | 656,639 | 653,522 | ||||||||||||||||||
Property, plant and equipment | 5,700,176 | 5,542,316 | ||||||||||||||||||
Less: accumulated depreciation | (624,548 | ) | (602,698 | ) | ||||||||||||||||
Total property, plant and equipment, net | 5,075,628 | 4,939,618 | ||||||||||||||||||
Investment in unconsolidated affiliates | 31,179 | 63,054 | ||||||||||||||||||
Other long-term assets | 2,242 | 2,140 | ||||||||||||||||||
Total assets | 6,835,716 | 6,728,362 | ||||||||||||||||||
Accounts payable | 320,645 | 320,627 | ||||||||||||||||||
Accrued liabilities | 391,352 | 390,178 | ||||||||||||||||||
Total current liabilities | 739,226 | 738,034 | ||||||||||||||||||
Deferred income taxes | 191,318 | 189,428 | ||||||||||||||||||
Other long-term liabilities | 134,340 | 134,261 | ||||||||||||||||||
Common units | 2,134,714 | 2,097,404 | ||||||||||||||||||
Non-controlling interest in consolidated subsidiaries | 328,346 | 261,463 | ||||||||||||||||||
Total equity | 3,215,591 | 3,111,398 | ||||||||||||||||||
Total liabilities and equity | 6,835,716 | 6,728,362 | ||||||||||||||||||
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | |||||||||||||||||||
Statement of Operations | As previously | As restated | As previously | As restated | ||||||||||||||||
reported | reported | |||||||||||||||||||
Revenue | $ | 320,137 | $ | 316,976 | $ | 1,029,304 | $ | 1,019,709 | ||||||||||||
Total revenue | 283,737 | 280,576 | 1,080,256 | 1,070,661 | ||||||||||||||||
Facility expenses | 53,293 | 52,883 | 150,671 | 149,438 | ||||||||||||||||
Selling, general and administrative expenses | 21,922 | 21,723 | 69,025 | 68,471 | ||||||||||||||||
Depreciation | 48,136 | 46,554 | 132,199 | 127,472 | ||||||||||||||||
Accretion of asset retirement obligations | 141 | 140 | 540 | 536 | ||||||||||||||||
Total operating expenses | 274,175 | 271,983 | 760,353 | 753,835 | ||||||||||||||||
Income from operations | 9,562 | 8,593 | 319,903 | 316,826 | ||||||||||||||||
Equity in earnings from unconsolidated affiliates | 246 | 706 | 788 | 2,254 | ||||||||||||||||
(Loss) income before provision for income tax | (22,176 | ) | (22,685 | ) | 230,251 | 228,640 | ||||||||||||||
Net (loss) income | (14,756 | ) | (15,265 | ) | 188,653 | 187,042 | ||||||||||||||
Net loss (income) attributable to non-controlling interest | 416 | 925 | (65 | ) | 1,546 | |||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||
Statement of Cash Flows | As previously | As restated | ||||||||||||||||||
reported | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 188,653 | $ | 187,042 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation | 132,199 | 127,472 | ||||||||||||||||||
Accretion of asset retirement obligations | 540 | 536 | ||||||||||||||||||
Equity in earnings from unconsolidated affiliate | (788 | ) | (2,254 | ) | ||||||||||||||||
Distributions from unconsolidated affiliate | 2,200 | 6,624 | ||||||||||||||||||
Receivables | 32,739 | 32,248 | ||||||||||||||||||
Other current assets | (12,707 | ) | (12,866 | ) | ||||||||||||||||
Accounts payable and accrued liabilities | 36,737 | 36,837 | ||||||||||||||||||
Net cash provided by operating activities | 389,718 | 385,784 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | (1,240,866 | ) | (1,239,705 | ) | ||||||||||||||||
Investment in unconsolidated affiliates | — | (839 | ) | |||||||||||||||||
Net cash flows used in investing activities | (1,746,071 | ) | (1,745,749 | ) | ||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Contributions from non-controlling interest | 56,940 | 56,101 | ||||||||||||||||||
Payment of distributions to non-controlling interest | (4,495 | ) | (71 | ) | ||||||||||||||||
Net cash flows provided by financing activities | 1,654,401 | 1,657,986 | ||||||||||||||||||
Net increase in cash and cash equivalents | 298,048 | 298,021 | ||||||||||||||||||
Cash and cash equivalents at beginning of year | 117,016 | 114,332 | ||||||||||||||||||
Cash and cash equivalents at end of period | 415,064 | 412,353 | ||||||||||||||||||
Common Units | Non-controlling Interest | Total Equity | ||||||||||||||||||
Statement of Changes in Equity | As | As restated | As | As | As | As restated | ||||||||||||||
previously | previously | restated | previously | |||||||||||||||||
reported | reported | reported | ||||||||||||||||||
December 31, 2011 | $ | 679,309 | $ | 642,522 | $ | 70,227 | $ | 189 | $ | 1,502,067 | $ | 1,395,242 | ||||||||
Distributions paid | (244,169 | ) | (244,169 | ) | (4,495 | ) | (71 | ) | (248,664 | ) | (244,240 | ) | ||||||||
Contributions from non-controlling interest | — | — | 56,940 | 56,101 | 56,940 | 56,101 | ||||||||||||||
Deferred income tax impact from changes in equity | (74,855 | ) | (75,248 | ) | — | — | (74,855 | ) | (75,248 | ) | ||||||||||
Net income (loss) | 188,588 | 188,588 | 65 | (1,546 | ) | 188,653 | 187,042 | |||||||||||||
September 30, 2012 | 1,745,672 | 1,708,492 | 122,737 | 54,673 | 2,620,940 | 2,515,696 | ||||||||||||||
Business_Combination
Business Combination | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Business Combination | ' | ||||
Business Combination | ' | ||||
4. Business Combination | |||||
On May 8, 2013, the Partnership acquired natural gas gathering and processing assets from Chesapeake Energy Corporation (“Chesapeake”) for a cash purchase price of approximately $225.2 million, subject to final purchase price adjustments. The acquired assets include a 200 MMcf/d cryogenic gas processing plant currently under construction known as the Buffalo Creek Plant, 22 miles of gas gathering pipeline in Hemphill County, Texas, and approximately 30 miles of rights-of-way associated with the future construction of a trunk line. Additional assets acquired from Chesapeake consist of an amine treating facility and a five mile gas gathering pipeline in Washita County, Oklahoma. This acquisition is referred to as the Buffalo Creek Acquisition. | |||||
Concurrently with the closing of the Buffalo Creek Acquisition, the Partnership entered into a long-term fee-based agreement to provide treating, processing and certain gathering and compression services for natural gas owned or controlled by Chesapeake at the facilities acquired. Chesapeake has dedicated 130,000 acres throughout the Anadarko Basin to the Partnership as part of this long-term agreement. As a result of the acquisition, the Partnership has expanded its presence in the Granite Wash and Hogshooter formations in Oklahoma. | |||||
Contemporaneously with the Buffalo Creek Acquisition, Chesapeake agreed to extend a keep-whole processing agreement for natural gas produced in the Appalachia Basin area of the Partnership’s Northeast segment for five additional years, to 2020. The Partnership paid an additional $20 million of cash upon closing the Buffalo Creek Acquisition as consideration for the extension and has recorded it as deferred contract cost in the accompanying Condensed Consolidated Balance Sheets. The deferred contract costs will be amortized over the extension term. This $20 million is not considered to be part of the purchase price of Buffalo Creek Acquisition and is not included in the purchase price allocation table below. | |||||
The Buffalo Creek Acquisition is accounted for as a business combination. The total purchase price is allocated to identifiable assets acquired and liabilities assumed based on the estimated fair values at the acquisition date. The remaining purchase price in excess of the fair value of the identifiable assets and liabilities is recorded as goodwill. The acquired assets and the related results of operations are included in the Partnership’s Southwest segment. | |||||
The following table summarizes the preliminary purchase price allocation for the Buffalo Creek Acquisition (in thousands): | |||||
Assets: | |||||
Property, plant and equipment | $ | 144,115 | |||
Goodwill | 2,682 | ||||
Intangible asset | 84,500 | ||||
Liabilities: | |||||
Accounts payable | 6,087 | ||||
Total | $ | 225,210 | |||
As of September 30, 2013, the purchase price for the Buffalo Creek Acquisition is $225.2 million subject to further working capital adjustments. Due to the potential change in assumed liabilities due to estimates and the further working capital adjustments, the purchase price allocation is subject to further adjustment, which could impact depreciation and amortization expense. | |||||
The goodwill recognized from the Buffalo Creek Acquisition results primarily from the Partnership’s ability to grow its business in the liquids-rich gas areas of the Granite Wash and Hogshooter formations in Oklahoma and access additional markets in a competitive environment as a result of securing the gathering and processing rights for a large area of dedicated acreage. All of the goodwill is deductible for tax purposes. | |||||
The intangible asset consists of an identifiable customer contract with Chesapeake. The asset results from the value obtained related to the dedicated acreage and significant fee-based revenues the Partnership will earn. The acquired intangible will be amortized on a straight-line basis over the estimated remaining customer contract useful life of 20 years. | |||||
Pro forma financial results that give effect to the Buffalo Creek Acquisition are not presented as it is impractical to obtain the necessary information. Chesapeake did not operate the acquired assets as a standalone business and, therefore, historical financial information that is consistent with the operations under the current agreements is not available. |
Divestiture
Divestiture | 9 Months Ended |
Sep. 30, 2013 | |
Divestiture | ' |
Divestiture | ' |
5. Divestiture | |
In June 2013, the Partnership completed the sale of certain gathering assets in Doddridge County, West Virginia (the “Sherwood Asset Sale”) to Summit Midstream Partners, LP (“Summit”) for approximately $207.9 million cash, net of third party transaction costs. In connection with the Sherwood Asset Sale, Summit assumed liabilities associated with the purchased assets other than certain identified liabilities that were retained by the Partnership. Liquids-rich gas gathered by these assets is dedicated to the Partnership for processing at the Marcellus segment’s Sherwood processing complex, also located in Doddridge County, West Virginia. The assets included in this transaction consist of over 40 miles of newly constructed high-pressure gas gathering pipelines, certain rights-of-way associated with the pipeline, and two compressor stations totaling over 21,000 horsepower of combined compression. The assets had a carrying value of approximately $169.0 million and were part of the Partnership’s Marcellus segment. The estimated gain of approximately $38.9 million on the Sherwood Asset Sale is included in Loss (gain) on disposal of property, plant, and equipment in the accompanying Condensed Consolidated Statements of Operations. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
6. Derivative Financial Instruments | ||||||||||||||||||||
Commodity Derivatives | ||||||||||||||||||||
NGL and natural gas prices are volatile and are impacted by changes in fundamental supply and demand, as well as market uncertainty, availability of NGL transportation and fractionation capacity and a variety of additional factors that are beyond the Partnership’s control. The Partnership’s profitability is directly affected by prevailing commodity prices primarily as a result of processing or conditioning at its own or third-party processing plants, purchasing and selling or gathering and transporting volumes of natural gas at index-related prices and the cost of third-party transportation and fractionation services. To the extent that commodity prices influence the level of natural gas drilling by the Partnership’s producer customers, such prices also affect profitability. To protect itself financially against adverse price movements and to maintain more stable and predictable cash flows so that the Partnership can meet its cash distribution objectives, debt service and capital plans, the Partnership executes a strategy governed by the risk management policy approved by the General Partner’s board of directors. The Partnership has a committee comprised of senior management that oversees risk management activities, continually monitors the risk management program and adjusts its strategy as conditions warrant. The Partnership enters into certain derivative contracts to reduce the risks associated with unfavorable changes in the prices of natural gas, NGLs and crude oil. Derivative contracts utilized are swaps and options traded on the OTC market and fixed price forward contracts. The risk management policy does not allow the Partnership to take speculative positions with its derivative contracts. | ||||||||||||||||||||
To mitigate its cash flow exposure to fluctuations in the price of NGLs, the Partnership has entered into derivative financial instruments relating to the future price of NGLs and crude oil. The Partnership currently manages the majority of its NGL price risk using direct product NGL derivative contracts. The Partnership enters into NGL derivative contracts when adequate market liquidity exists and future prices are satisfactory. A portion of the Partnership’s NGL price exposure is managed by using crude oil contracts that were primarily executed when there was a strong relationship between changes in NGL and crude oil prices. During 2012 and continuing into 2013, the price of NGLs as compared to crude oil weakened significantly and as a result, the crude oil contracts became less effective in offsetting the impact of NGL price fluctuations. In periods where NGL prices and crude oil prices are not consistent with the historical relationship, the crude oil contracts create increased risk and additional gains or losses. The Partnership may settle its crude oil contracts prior to the contractual settlement date in order to take advantage of favorable terms and reduce the future exposure resulting from the less effective crude oil contracts. Based on our current volume forecasts, approximately 80% of our derivative positions used to manage our future commodity price exposure are direct product NGL derivative contracts. | ||||||||||||||||||||
To mitigate its cash flow exposure to fluctuations in the price of natural gas, the Partnership primarily utilizes derivative financial instruments relating to the future price of natural gas and takes into account the partial offset of its long and short gas positions resulting from normal operating activities. | ||||||||||||||||||||
As a result of its current derivative positions, the Partnership has mitigated a portion of its expected commodity price risk through the fourth quarter of 2015. The Partnership would be exposed to additional commodity risk in certain situations such as if producers under deliver or over deliver product or when processing facilities are operated in different recovery modes. In the event the Partnership has derivative positions in excess of the product delivered or expected to be delivered, the excess derivative positions may be terminated. | ||||||||||||||||||||
Currently, all of the Partnership’s financial derivative positions are with financial institutions that are participating members of the Credit Facility (“participating bank group members”). Management conducts a standard credit review on counterparties to derivative contracts. There are no collateral requirements for derivative contracts among the Partnership and any participating bank group members. Specifically, the Partnership is not required to post collateral when it enters into derivative contracts with participating bank group members as the participating bank group members have a collateral position in substantially all the wholly-owned assets of the Partnership other than MarkWest Liberty Midstream and its subsidiaries. A separate agreement with certain participating bank group members allows MarkWest Liberty Midstream to enter into derivative positions without posting cash collateral. The Partnership uses standardized agreements that allow for offset of certain positive and negative exposures (“master netting arrangements”) in the event of default or other terminating events, including bankruptcy. | ||||||||||||||||||||
The Partnership records derivative contracts at fair value in the Condensed Consolidated Balance Sheets and has not elected hedge accounting or the normal purchases and normal sales designation. The Partnership’s accounting may cause volatility in the Condensed Consolidated Statements of Operations as the Partnership recognizes in current earnings all unrealized gains and losses from the changes in fair value of derivatives. | ||||||||||||||||||||
As of September 30, 2013, the Partnership had the following outstanding commodity contracts that were entered into to manage cash flow risk associated with future sales of NGLs or future purchases of natural gas: | ||||||||||||||||||||
Derivative contracts not designated as hedging instruments | Financial | Notional Quantity | ||||||||||||||||||
Position | (net) | |||||||||||||||||||
Crude Oil (bbl) | Short | 1,409,056 | ||||||||||||||||||
Natural Gas (MMBtu) | Long | 4,171,700 | ||||||||||||||||||
NGLs (gal) | Short | 140,771,757 | ||||||||||||||||||
Embedded Derivatives in Commodity Contracts | ||||||||||||||||||||
The Partnership has a commodity contract with a producer in the Appalachia region that creates a floor on the frac spread for gas purchases of 9,000 Dth/d. The commodity contract is a component of a broader regional arrangement that also includes a keep-whole processing agreement. This contract is accounted for as an embedded derivative and is recorded at fair value. The changes in fair value of this commodity contract are based on the difference between the contractual and index pricing and are recorded in earnings through Derivative (loss) gain related to purchased product costs. In February 2011, the Partnership executed agreements with the producer to extend the commodity contract and the related processing agreement from March 31, 2015 to December 31, 2022 with the producer’s option to extend the agreement for successive five-year terms through December 31, 2032. As of September 30, 2013, the estimated fair value of this contract was a liability of $82.0 million and the recorded value was a liability of $28.5 million. The recorded liability does not include the inception fair value of the commodity contract related to the extended period from April 1, 2015 to December 31, 2022. In accordance with GAAP for non-option embedded derivatives, the fair value of this extended portion of the commodity contract at its inception of February 1, 2011 is deemed to be allocable to the host processing contract and therefore not recorded as a derivative liability. See the following table for a reconciliation of the liability recorded for the embedded derivative as of September 30, 2013 (in thousands): | ||||||||||||||||||||
Fair value of commodity contract | $ | 81,957 | ||||||||||||||||||
Inception value for period from April 1, 2015 to December 31, 2022 | (53,507 | ) | ||||||||||||||||||
Derivative liability as of September 30, 2013 | $ | 28,450 | ||||||||||||||||||
The Partnership has a commodity contract that gives it an option to fix a component of the utilities cost to an index price on electricity at its plant location in the Southwest segment through the fourth quarter of 2014. Changes in the fair value of the derivative component of this contract are recorded in Derivative loss related to facility expenses. As of September 30, 2013, the estimated fair value of this contract was an asset of $3.3 million. | ||||||||||||||||||||
Financial Statement Impact of Derivative Instruments | ||||||||||||||||||||
There were no material changes to the Partnership’s policy regarding the accounting for these instruments as previously disclosed in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2012. The impact of the Partnership’s derivative instruments on its Condensed Consolidated Balance Sheets is summarized below (in thousands): | ||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
Derivative instruments not designated as hedging | September 30, | December 31, | September 30, | December 31, | ||||||||||||||||
instruments and their balance sheet location | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Commodity contracts(1) | ||||||||||||||||||||
Fair value of derivative instruments — current | $ | 15,710 | $ | 19,504 | $ | (29,479 | ) | $ | (27,229 | ) | ||||||||||
Fair value of derivative instruments - long-term | 4,555 | 10,878 | (21,044 | ) | (32,190 | ) | ||||||||||||||
Total | $ | 20,265 | $ | 30,382 | $ | (50,523 | ) | $ | (59,419 | ) | ||||||||||
(1) Includes Embedded Derivatives in Commodity Contracts as discussed above. | ||||||||||||||||||||
Although certain derivative positions are subject to master netting agreements, the Partnership has elected not to offset any derivative assets and liabilities. The gross amounts in the table below equal the balances presented in the Condensed Consolidated Balance Sheets. The table below summarizes the impact if the Partnership had elected to net its derivative positions that are subject to master netting arrangements (in thousands): | ||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
As of September 30, 2013 | Gross | Gross | Net Amount | Gross | Gross | Net | ||||||||||||||
Amounts of | Amounts | Amounts of | Amounts | Amount | ||||||||||||||||
Assets in the | Not Offset in | Liabilities in | Not Offset in | |||||||||||||||||
Consolidated | the | the | the | |||||||||||||||||
Balance | Consolidated | Consolidated | Consolidated | |||||||||||||||||
Sheet | Balance | Balance | Balance | |||||||||||||||||
Sheet | Sheet | Sheet | ||||||||||||||||||
Current | ||||||||||||||||||||
Commodity contracts | $ | 12,630 | $ | (10,365 | ) | $ | 2,265 | $ | (19,372 | ) | $ | 10,365 | $ | (9,007 | ) | |||||
Embedded derivatives in commodity contracts | 3,080 | — | 3,080 | (10,107 | ) | — | (10,107 | ) | ||||||||||||
Total current derivative instruments | 15,710 | (10,365 | ) | 5,345 | (29,479 | ) | 10,365 | (19,114 | ) | |||||||||||
Non-current | ||||||||||||||||||||
Commodity contracts | 4,289 | (1,792 | ) | 2,497 | (2,701 | ) | 1,792 | (909 | ) | |||||||||||
Embedded derivatives in commodity contracts | 266 | — | 266 | (18,343 | ) | — | (18,343 | ) | ||||||||||||
Total non-current derivative instruments | 4,555 | (1,792 | ) | 2,763 | (21,044 | ) | 1,792 | (19,252 | ) | |||||||||||
Total derivative instruments | $ | 20,265 | $ | (12,157 | ) | $ | 8,108 | $ | (50,523 | ) | $ | 12,157 | $ | (38,366 | ) | |||||
Assets | Liabilities | |||||||||||||||||||
As of December 31, 2012 | Gross | Gross | Net Amount | Gross | Gross | Net | ||||||||||||||
Amounts of | Amounts | Amounts of | Amounts | Amount | ||||||||||||||||
Assets in the | Not Offset in | Liabilities in | Not Offset in | |||||||||||||||||
Consolidated | the | the | the | |||||||||||||||||
Balance | Consolidated | Consolidated | Consolidated | |||||||||||||||||
Sheet | Balance | Balance | Balance | |||||||||||||||||
Sheet | Sheet | Sheet | ||||||||||||||||||
Current | ||||||||||||||||||||
Commodity contracts | $ | 16,438 | $ | (9,541 | ) | $ | 6,897 | $ | (16,679 | ) | $ | 9,541 | $ | (7,138 | ) | |||||
Embedded derivatives in commodity contracts | 3,066 | — | 3,066 | (10,550 | ) | — | (10,550 | ) | ||||||||||||
Total current derivative instruments | 19,504 | (9,541 | ) | 9,963 | (27,229 | ) | 9,541 | (17,688 | ) | |||||||||||
Non-current | ||||||||||||||||||||
Commodity contracts | 7,798 | (2,637 | ) | 5,161 | (2,637 | ) | 2,637 | — | ||||||||||||
Embedded derivatives in commodity contracts | 3,080 | — | 3,080 | (29,553 | ) | — | (29,553 | ) | ||||||||||||
Total non-current derivative instruments | 10,878 | (2,637 | ) | 8,241 | (32,190 | ) | 2,637 | (29,553 | ) | |||||||||||
Total derivative instruments | $ | 30,382 | $ | (12,178 | ) | $ | 18,204 | $ | (59,419 | ) | $ | 12,178 | $ | (47,241 | ) | |||||
In the tables above, the Partnership does not offset a counterparty’s current derivative contracts with the counterparty’s non-current derivative contracts, although the Partnership’s master netting arrangements would allow current and non-current positions to be offset in the event of default. Additionally, in the event of a default, the Partnership’s master netting arrangements would allow for the offsetting of all transactions executed under the master netting arrangement. These types of transactions may include non-derivative instruments, derivatives qualifying for scope exceptions, receivables and payables arising from settled positions, and other forms of non-cash collateral (such as letters of credit). These types of transactions are excluded from the offsetting tables presented above. | ||||||||||||||||||||
The impact of the Partnership’s derivative instruments on its Condensed Consolidated Statements of Operations is summarized below (in thousands): | ||||||||||||||||||||
Derivative contracts not designated as | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||
hedging instruments and the location of | ||||||||||||||||||||
gain or (loss) recognized in income | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Revenue: Derivative (loss) gain | ||||||||||||||||||||
Realized (loss) gain | $ | (3,631 | ) | $ | (2,025 | ) | $ | 3,356 | $ | (9,662 | ) | |||||||||
Unrealized (loss) gain | (26,687 | ) | (34,375 | ) | (14,160 | ) | 60,614 | |||||||||||||
Total revenue: derivative (loss) gain | (30,318 | ) | (36,400 | ) | (10,804 | ) | 50,952 | |||||||||||||
Derivative (loss) gain related to purchased product costs | ||||||||||||||||||||
Realized loss | (1,711 | ) | (6,334 | ) | (4,836 | ) | (21,201 | ) | ||||||||||||
Unrealized (loss) gain | (18,523 | ) | (5,309 | ) | 15,738 | 42,337 | ||||||||||||||
Total derivative (loss) gain related to purchase product costs | (20,234 | ) | (11,643 | ) | 10,902 | 21,136 | ||||||||||||||
Derivative loss related to facility expenses | ||||||||||||||||||||
Unrealized loss | (2,332 | ) | (4,028 | ) | (2,800 | ) | (1,136 | ) | ||||||||||||
Total (loss) gain | $ | (52,884 | ) | $ | (52,071 | ) | $ | (2,702 | ) | $ | 70,952 |
Fair_Value
Fair Value | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Fair Value | ' | |||||||||
Fair Value | ' | |||||||||
7. Fair Value | ||||||||||
Fair value measurements and disclosures relate primarily to the Partnership’s derivative positions discussed in Note 6. The following table presents the derivative instruments carried at fair value as of September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||
As of September 30, 2013 | Assets | Liabilities | ||||||||
Significant other observable inputs (Level 2) | ||||||||||
Commodity contracts | $ | 3,518 | $ | (11,615 | ) | |||||
Significant unobservable inputs (Level 3) | ||||||||||
Commodity contracts | 13,401 | (10,458 | ) | |||||||
Embedded derivatives in commodity contracts | 3,346 | (28,450 | ) | |||||||
Total carrying value in Condensed Consolidated Balance Sheet | $ | 20,265 | $ | (50,523 | ) | |||||
As of December 31, 2012 | Assets | Liabilities | ||||||||
Significant other observable inputs (Level 2) | ||||||||||
Commodity contracts | $ | 8,441 | $ | (15,970 | ) | |||||
Significant unobservable inputs (Level 3) | ||||||||||
Commodity contracts | 15,795 | (3,346 | ) | |||||||
Embedded derivatives in commodity contracts | 6,146 | (40,103 | ) | |||||||
Total carrying value in Condensed Consolidated Balance Sheet | $ | 30,382 | $ | (59,419 | ) | |||||
The following table provides additional information about the significant unobservable inputs used in the valuation of Level 3 instruments as of September 30, 2013. The market approach is used for valuation of all instruments. | ||||||||||
Level 3 Instrument | Balance | Unobservable Inputs | Value Range | Time Period | ||||||
Sheet | ||||||||||
Classification | ||||||||||
Commodity contracts | Assets | Forward propane prices (per gallon) (1) | $0.97 - $1.07 | Oct. 2013 – Dec. 2014 | ||||||
Forward isobutane prices (per gallon) (1) | $1.28 - $1.41 | Oct. 2013 – Dec. 2014 | ||||||||
Forward normal butane prices (per gallon) (1) | $1.21 - $1.38 | Oct. 2013 – Dec. 2014 | ||||||||
Forward natural gasoline prices (per gallon) (1) | $1.93 - $2.07 | Oct. 2013 – Dec. 2014 | ||||||||
Crude option volatilities (%) | 16.37% - 22.15% | Dec. 2013 – Dec. 2014 | ||||||||
Liabilities | Forward propane prices (per gallon) (1) | $0.97 - $1.07 | Oct. 2013 – Dec. 2014 | |||||||
Forward isobutane prices (per gallon) (1) | $1.28 - $1.40 | Jan. 2014 – Dec. 2014 | ||||||||
Forward normal butane prices (per gallon) (1) | $1.21 - $1.37 | Jan. 2014 – Dec. 2014 | ||||||||
Forward natural gasoline prices (per gallon) (1) | $2.03 - $2.07 | Oct. 2013 – Mar. 2014 | ||||||||
Propane option volatilities (%) | 14.01% - 26.14% | Oct. 2013 – Dec. 2013 | ||||||||
Crude option volatilities (%) | 11.61% - 26.45% | Oct. 2013 – Jul. 2014 | ||||||||
Embedded derivatives in commodity contracts | Asset | ERCOT Pricing (per MegaWatt Hour) (2) | $29.19 - $58.68 | Oct. 2013 – Dec. 2014 | ||||||
Liability | Forward propane prices (per gallon) (1) | $0.89 - $1.07 | Oct. 2013 – Dec. 2022 | |||||||
Forward isobutane prices (per gallon) (1) | $1.26 - $1.41 | Oct. 2013 – Dec. 2022 | ||||||||
Forward normal butane prices (per gallon) (1) | $1.14 - $1.38 | Oct. 2013 – Dec. 2022 | ||||||||
Forward natural gasoline prices (per gallon) (1) | $1.73 - $2.07 | Oct. 2013 – Dec. 2022 | ||||||||
Forward natural gas prices (per MMBtu) (3) | $3.50 - $5.50 | Oct. 2013 – Dec. 2022 | ||||||||
Probability of renewal(4) | 0% | |||||||||
(1) NGL prices decrease over the respective periods with increases in the winter months due to seasonality. | ||||||||||
(2) The forward ERCOT prices utilized in the valuations are generally flat at the low end of the range with a seasonal spike in pricing in the summer months. | ||||||||||
(3) Natural gas prices used in the valuations are generally at the lower end of the range in the early years and increase over time. | ||||||||||
(4) The producer counterparty to the embedded derivative has the option to renew the gas purchase agreement and the related keep-whole processing agreement for two successive five year terms after 2022. The embedded gas purchase agreement cannot be renewed without the renewal of the related keep-whole processing agreement. Due to the significant number of years until the renewal options are exercisable and the high level of uncertainty regarding the counterparty’s future business strategy, the future commodity price environment, and the future competitive environment for midstream services in the Appalachia area, management determined that a 0% probability of renewal is an appropriate assumption. | ||||||||||
Fair Value Sensitivity Related to Unobservable Inputs | ||||||||||
Commodity contracts (assets and liabilities) - For the Partnership’s commodity contracts, increases in forward NGL prices result in a decrease in the fair value of the derivative assets and an increase in the fair value of the derivative liabilities. The forward prices for the individual NGL products generally increase or decrease in a positive correlation with one another. An increase in crude option volatilities will generally result in an increase in the fair value of the Partnership’s derivative assets and derivative liabilities in commodity contracts. | ||||||||||
Embedded derivative in commodity contracts (liability) - The embedded derivative liability relates to the natural gas purchase agreement embedded in a keep-whole processing agreement as discussed further in Note 6. Increases (decreases) in forward NGL prices result in an increase (decrease) in the fair value of the embedded derivative liability. An increase in the probability of renewal would result in an increase in the fair value of the related embedded derivative liability. | ||||||||||
Embedded derivative in commodity contracts (asset) - The embedded derivative asset relates to utilities costs discussed further in Note 6. Increases in the forward ERCOT prices, relative to natural gas prices, result in an increase in the fair value of the embedded derivative asset. | ||||||||||
Level 3 Valuation Process | ||||||||||
The Partnership’s Risk Management Department (the “Risk Department”) is responsible for the valuation of the Partnership’s commodity derivative contracts and embedded derivatives in commodity contracts. The Risk Department reports to the Chief Financial Officer and is responsible for the oversight of the Partnership’s commodity risk management program. The members of the Risk Department have the requisite experience, knowledge and day-to-day involvement in the energy commodity markets to ensure appropriate valuations and understand the changes in the valuations from period to period. The valuations of the Level 3 commodity derivative contracts are performed by a third-party pricing service and reviewed and validated on a quarterly basis by the Risk Department by comparing the pricing and option volatilities to actual market data and/or data provided by at least one other independent third-party pricing service. The valuations for the embedded derivatives in commodity contracts are completed by the Risk Department utilizing the market data and price curves provided by the third-party pricing service. For the embedded derivative in the keep-whole processing arrangement discussed in Note 6, the Risk Department must develop forward price curves for NGLs and natural gas for periods in which price curves are not available from third-party pricing services due to insufficient market data. As of September 30, 2013, the Risk Department utilized internally developed price curves for the period of January 2015 through December 2022 in the valuation of the embedded derivative in the keep-whole processing arrangement. In developing the pricing curves for these periods, the Risk Department maximizes its use of the latest known market data and trends as well as its understanding of the historical relationships between forward NGL and natural gas prices and the forward market data that is available for the required period, such as crude oil pricing and natural gas pricing from other markets. However, there is very limited actual market data available to validate the Risk Department’s estimated price curves. | ||||||||||
Changes in Level 3 Fair Value Measurements | ||||||||||
The table below includes a roll forward of the balance sheet amounts for the three months ended September 30, 2013 and 2012 for net assets and liabilities classified by the Partnership within Level 3 of the valuation hierarchy (in thousands): | ||||||||||
Three months ended September 30, 2013 | ||||||||||
Commodity Derivative | Embedded Derivatives | |||||||||
Contracts (net) | in Commodity | |||||||||
Contracts (net) | ||||||||||
Fair value at beginning of period | $ | 26,378 | $ | (2,403 | ) | |||||
Total loss (realized and unrealized) included in earnings (1) | (24,269 | ) | (24,786 | ) | ||||||
Settlements | 834 | 2,085 | ||||||||
Fair value at end of period | $ | 2,943 | $ | (25,104 | ) | |||||
The amount of total losses for the period included in earnings attributable to the change in unrealized gains or losses relating to contracts still held at end of period (1) | $ | (20,250 | ) | $ | (22,742 | ) | ||||
Three months ended September 30, 2012 | ||||||||||
Commodity Derivative | Embedded Derivatives | |||||||||
Contracts (net) | in Commodity | |||||||||
Contracts (net) | ||||||||||
Fair value at beginning of period | $ | 29,556 | $ | (10,395 | ) | |||||
Total loss (realized and unrealized) included in earnings (1) | (13,199 | ) | (19,842 | ) | ||||||
Settlements | 415 | 2,262 | ||||||||
Fair value at end of period | $ | 16,772 | $ | (27,975 | ) | |||||
The amount of total losses for the period included in earnings attributable to the change in unrealized gains or losses relating to contracts still held at end of period (1) | $ | (11,754 | ) | $ | (15,643 | ) | ||||
Nine months ended September 30, 2013 | ||||||||||
Commodity Derivative | Embedded Derivatives | |||||||||
Contracts (net) | in Commodity | |||||||||
Contracts (net) | ||||||||||
Fair value at beginning of period | $ | 12,449 | $ | (33,957 | ) | |||||
Total (loss) gain (realized and unrealized) included in earnings (1) | (4,050 | ) | 2,206 | |||||||
Settlements | (5,456 | ) | 6,647 | |||||||
Fair value at end of period | $ | 2,943 | $ | (25,104 | ) | |||||
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to contracts still held at end of period (1) | $ | (5,656 | ) | $ | 3,883 | |||||
Nine months ended September 30, 2012 | ||||||||||
Commodity Derivative | Embedded Derivatives in | |||||||||
Contracts (net) | Commodity Contracts | |||||||||
(net) | ||||||||||
Fair value at beginning of period | $ | (2,965 | ) | $ | (53,904 | ) | ||||
Total gain (realized and unrealized) included in earnings (1) | 21,016 | 17,829 | ||||||||
Settlements | (1,279 | ) | 8,100 | |||||||
Fair value at end of period | $ | 16,772 | $ | (27,975 | ) | |||||
The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to contracts still held at end of period (1) | $ | 14,843 | $ | 17,728 | ||||||
(1) Gains and losses on Commodity Derivative Contracts classified as Level 3 are recorded in Revenue: Derivative gain. Gains and losses on Embedded Derivatives in Commodity Contracts are recorded in Purchased product costs, Derivative gain related to purchased product costs, Facility expenses, and Derivative loss (gain) related to facility expenses. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
8. Inventories | ||||||||
Inventories consist of the following (in thousands): | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
NGLs | $ | 24,739 | $ | 14,763 | ||||
Spare parts, materials and supplies | 10,775 | 9,870 | ||||||
Total inventories | $ | 35,514 | $ | 24,633 |
Goodwill
Goodwill | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Goodwill | ' | |||||||||||||
Goodwill | ' | |||||||||||||
9. Goodwill | ||||||||||||||
Changes in goodwill for the nine months ended September 30, 2013 are summarized as follows (in thousands): | ||||||||||||||
Marcellus | Northeast | Southwest | Total | |||||||||||
Gross goodwill as of December 31, 2012 | $ | 74,256 | $ | 62,445 | $ | 34,178 | $ | 170,879 | ||||||
Acquisition (1) | — | — | 2,682 | 2,682 | ||||||||||
Gross goodwill as of September 30, 2013 | 74,256 | 62,445 | 36,860 | 173,561 | ||||||||||
Cumulative impairment (2) | — | — | (28,705 | ) | (28,705 | ) | ||||||||
Balance as of September 30, 2013 | $ | 74,256 | $ | 62,445 | $ | 8,155 | $ | 144,856 | ||||||
(1) Represents goodwill associated with the Buffalo Creek Acquisition (see Note 4). | ||||||||||||||
(2) All impairments recorded in the fourth quarter of 2008. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Long-Term Debt | ' | |||||||
Long-Term Debt | ' | |||||||
10. Long-Term Debt | ||||||||
Debt is summarized below (in thousands): | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Credit Facility | ||||||||
Credit Facility, variable interest, due September 2017 (1) | $ | — | $ | — | ||||
Senior Notes (2) | ||||||||
2018 Senior Notes, 8.75% interest, net of discount of zero and $109, respectively, issued April and May 2008 | — | 81,003 | ||||||
2020 Senior Notes, 6.75% interest, issued November 2010 and due November 2020 | 500,000 | 500,000 | ||||||
2021 Senior Notes, 6.5% interest, net of discount of $490 and $826, respectively, issued February and March 2011 and due August 2021 | 324,510 | 499,174 | ||||||
2022 Senior Notes, 6.25% interest, issued October 2011 and due June 2022 | 455,000 | 700,000 | ||||||
2023A Senior Notes, 5.5% interest, net of discount of $6,623 and $7,126, respectively, issued August 2012 and due February 2023 | 743,377 | 742,874 | ||||||
2023B Senior Notes, 4.5% interest, issued January 2013 and due July 2023 | 1,000,000 | — | ||||||
Total long-term debt | $ | 3,022,887 | $ | 2,523,051 | ||||
(1) Applicable interest rate was 5.00% at September 30, 2013. | ||||||||
(2) The estimated aggregate fair value of the senior notes (collectively, the “Senior Notes”) was approximately $3,065 million and $2,763 million as of September 30, 2013 and December 31, 2012, respectively, based on quoted prices in an inactive market. The fair value of the Partnership’s Senior Notes is considered a Level 3 measurement. | ||||||||
Credit Facility | ||||||||
Under the provisions of the Credit Facility, the Partnership is subject to a number of restrictions and covenants. These covenants are used to calculate the available borrowing capacity on a quarterly basis. The Credit Facility is guaranteed by the Partnership’s 100% owned subsidiaries, other than MarkWest Liberty Midstream and its subsidiaries, and collateralized by substantially all of the Partnership’s assets and those of its 100% owned subsidiaries, other than MarkWest Liberty Midstream and its subsidiaries. As of September 30, 2013, the Partnership had no borrowings outstanding and approximately $11.3 million of letters of credit outstanding under the Credit Facility, leaving approximately $1,188.7 million of unused capacity of which approximately $530 million was available for borrowing based on financial covenant requirements. Additionally, the full amount of unused capacity is available for borrowing on a short term basis to provide financial flexibility within a given fiscal quarter. | ||||||||
Senior Notes | ||||||||
In January 2013, the Partnership completed a public offering for $1 billion in aggregate principal amount of 4.5% senior unsecured notes due July 2023. The Partnership received net proceeds of approximately $986.0 million after deducting underwriters’ and third-party expenses. A portion of the proceeds, together with cash on hand, was used to repurchase $81.1 million aggregate principal amount of the Partnership’s 8.75% senior notes due April 2018, $175.0 million of the outstanding principal amount of the Partnership’s 6.5% senior notes due August 2021 and $245.0 million of the outstanding principal amount of the Partnership’s 6.25% senior notes due September 2022, with the remainder used to fund the Partnership’s capital expenditure program and for general partnership purposes. The Partnership recorded a total pre-tax loss of approximately $38.5 million related to the repurchases. The pre-tax loss consisted of approximately $7.0 million related to the non-cash write-off of the unamortized discount and deferred finance costs and approximately $31.5 million related to the payment of redemption premiums. |
Equity
Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity | ' | ||||||||||||||||
Equity | ' | ||||||||||||||||
11. Equity | |||||||||||||||||
Equity Offerings | |||||||||||||||||
Commencing in November 2012, the Partnership had an At the Market offering program (the “November 2012 ATM”) in place with a financial institution (the “Manager”) which allows the Partnership from time to time, through the Manager as its sales agent, to offer and sell common units representing limited partner interests in the Partnership. Sales of such common units are made by means of ordinary brokers’ transactions on the NYSE at market prices, in block transactions or as otherwise agreed upon by the Manager and the Partnership. The Partnership may also sell common units to the Manager as principal for its own account at a price to be agreed upon at the time of the sale. For any such sales, the Partnership will enter into a separate agreement with the Manager. During the nine months ended September 30, 2013, the Partnership sold an aggregate of 9.3 million common units under the November 2012 ATM, receiving net proceeds of approximately $584.3 million after deducting approximately $9.4 million in manager fees and other third-party expenses. The proceeds from sales were used to fund capital expenditures and for general partnership purposes. | |||||||||||||||||
On August 7, 2013, the Partnership entered into an Equity Distribution Agreement with the Manager that established a $400 million At the Market offering program (the “August 2013 ATM”). During the nine months ended September 30, 2013, the Partnership sold an aggregate of 5.9 million common units under the August 2013 ATM, receiving net proceeds of approximately $396.0 million after deducting approximately $4.0 million in manager fees and other third-party expenses. The proceeds from sales were used to fund capital expenditures and for general partnership purposes. | |||||||||||||||||
On September 5, 2013, the Partnership, entered into an Equity Distribution Agreement with the Manager that established an At the Market offering program (the “September 2013 ATM”) pursuant to which, the Partnership may sell from time to time through the Manager as its sales agent, common units representing limited partner interests having an aggregate offering price of up to $1 billion. During the nine months ended September 30, 2013, the Partnership sold an aggregate of 0.9 million common units under the September 2013 ATM Agreement, receiving net proceeds of approximately $59.5 million after deducting approximately $0.6 million in manager fees and other third-party expenses. The proceeds from sales were used to fund capital expenditures and for general partnership purposes. | |||||||||||||||||
All of the Partnership’s Class B units were issued to and are held by M&R MWE Liberty, LLC, an affiliate of The Energy and Minerals Group (“EMG”), as part of the Partnership’s December 31, 2011 acquisition of the non-controlling interest in MarkWest Liberty Midstream & Resources, L.L.C. (“MarkWest Liberty Midstream”). Approximately four million Class B units converted to common units on July 1, 2013. The remaining Class B units will convert to common units on a one-for-one basis in four equal installments beginning on July 1, 2014 and each of the next three anniversaries of such date. | |||||||||||||||||
Distributions of Available Cash and Range of Unit Prices | |||||||||||||||||
Common Unit Price | Distribution | ||||||||||||||||
Per | |||||||||||||||||
Common | |||||||||||||||||
Quarter Ended | High | Low | Unit | Declaration Date | Record Date | Payment Date | |||||||||||
September 30, 2013 | $ | 72.35 | $ | 65.27 | $ | 0.85 | October 23, 2013 | November 7, 2013 | November 14, 2013 | ||||||||
June 30, 2013 | $ | 71.2 | $ | 56.9 | $ | 0.84 | July 24, 2013 | August 6, 2013 | August 14, 2013 | ||||||||
March 31, 2013 | $ | 61.97 | $ | 51.77 | $ | 0.83 | April 25, 2013 | May 7, 2013 | May 15, 2013 | ||||||||
December 31, 2012 | $ | 55.95 | $ | 46.03 | $ | 0.82 | January 23, 2013 | February 6, 2013 | February 14, 2013 |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
12. Commitments and Contingencies | |
Legal | |
The Partnership is subject to a variety of risks and disputes, and is a party to various legal proceedings in the normal course of its business. The Partnership maintains insurance policies in amounts and with coverage and deductibles that it believes are reasonable and prudent. However, the Partnership cannot assure that the insurance companies will promptly honor their policy obligations or that the coverage or levels of insurance will be adequate to protect the Partnership from all material expenses related to future claims for property loss or business interruption to the Partnership, or for third-party claims of personal injury and property damage, or that the coverages or levels of insurance it currently has will be available in the future at economical prices. While it is not possible to predict the outcome of the legal actions with certainty, management is of the opinion that appropriate provisions and accruals for potential losses associated with all legal actions have been made in the accompanying Condensed Consolidated Financial Statements and that none of these actions, either individually or in the aggregate, will have a material adverse effect on the Partnership’s financial condition, liquidity or results of operations. | |
Contract Contingencies | |
Certain natural gas processing arrangements in the Partnership’s Marcellus, Utica and Northeast segments require the Partnership to construct new natural gas processing plants and NGL pipelines and contain certain fees and concessions if specified construction milestones are not achieved for reasons other than force majeure. In certain cases, certain producers may have the right to cancel the processing arrangements if there are significant delays that are not due to force majeure. As of September 30, 2013, management does not believe there are any indications that the Partnership will incur any such fees or other material consequences for not meeting construction milestones. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Income Taxes | ' | |||||||||||||
Income Taxes | ' | |||||||||||||
13. Income Taxes | ||||||||||||||
A reconciliation of the provision for income tax and the amount computed by applying the federal statutory rate to income before provision for income tax for the nine months ended September 30, 2013 and 2012 is as follows (in thousands): | ||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
Corporation | Partnership | Eliminations | Consolidated | |||||||||||
Income before provision for income tax | $ | 25,480 | $ | 40,223 | $ | (8,779 | ) | $ | 56,924 | |||||
Federal statutory rate | 35 | % | 0 | % | 0 | % | ||||||||
Federal income tax at statutory rate | 8,918 | — | — | 8,918 | ||||||||||
Permanent items | 25 | — | — | 25 | ||||||||||
State income taxes net of federal benefit | 511 | 154 | — | 665 | ||||||||||
Provision on income from Class A units (1) | 2,976 | — | — | 2,976 | ||||||||||
Provision for income tax | $ | 12,430 | $ | 154 | $ | — | $ | 12,584 | ||||||
Nine months ended September 30, 2012 | ||||||||||||||
Corporation | Partnership | Eliminations | Consolidated | |||||||||||
Income before provision for income tax | $ | 74,679 | $ | 151,752 | $ | 2,209 | $ | 228,640 | ||||||
Federal statutory rate | 35 | % | 0 | % | 0 | % | ||||||||
Federal income tax at statutory rate | 26,138 | — | — | 26,138 | ||||||||||
Permanent items | 21 | — | — | 21 | ||||||||||
State income taxes net of federal benefit | 3,418 | 734 | — | 4,152 | ||||||||||
Provision on income from Class A units (1) | 11,287 | — | — | 11,287 | ||||||||||
Provision for income tax | $ | 40,864 | $ | 734 | $ | — | $ | 41,598 | ||||||
(1) The Corporation and the General Partner of the Partnership own Class A units of the Partnership that were received in the merger of the Corporation and the Partnership completed in February 2008. The Class A units share, on a pro-rata basis, in the income or loss of the Partnership, except for items attributable to the Partnership’s ownership of or sale of shares of the Corporation’s common stock. The provision for income tax on income from Class A units includes intra period allocations to continued operations and excludes allocations to equity. |
Earnings_Per_Common_Unit
Earnings Per Common Unit | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Common Unit | ' | |||||||||||||
Earnings Per Common Unit | ' | |||||||||||||
14. Earnings Per Common Unit | ||||||||||||||
The following table shows the computation of basic and diluted net income per common unit for the three and nine months ended September 30, 2013 and 2012, and the weighted-average units used to compute basic and diluted net income per common unit (in thousands, except per unit data): | ||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net (loss) income attributable to the Partnership’s unitholders | $ | (23,604 | ) | $ | (14,340 | ) | $ | 44,637 | $ | 188,588 | ||||
Less: Income allocable to phantom units | 618 | 541 | 1,718 | 1,595 | ||||||||||
(Loss) income available for common unitholders - basic | (24,222 | ) | (14,881 | ) | 42,919 | 186,993 | ||||||||
Add: Income allocable to phantom units and DER expense | — | — | 1,774 | 1,627 | ||||||||||
(Loss) income available for common unitholders - diluted | $ | (24,222 | ) | $ | (14,881 | ) | $ | 44,693 | $ | 188,620 | ||||
Weighted average common units outstanding - basic | 142,352 | 113,994 | 134,115 | 105,916 | ||||||||||
Potential common shares (Class B and phantom units) (1) | — | — | 19,340 | 20,679 | ||||||||||
Weighted average common units outstanding - diluted | 142,352 | 113,994 | 153,455 | 126,595 | ||||||||||
Net (loss) income attributable to the Partnership’s common unitholders per common unit (2) | ||||||||||||||
Basic | $ | (0.17 | ) | $ | (0.13 | ) | $ | 0.32 | $ | 1.77 | ||||
Diluted | $ | (0.17 | ) | $ | (0.13 | ) | $ | 0.29 | $ | 1.49 | ||||
(1) For the three month periods ending September 30, 2013 and September 30, 2012, 16,760 and 20,641 units were excluded, respectively, from the calculation of diluted units because the impact was anti-dilutive. | ||||||||||||||
(2) Earnings per Class B units equals zero as Class B unitholders are not entitled to receive distributions and therefore no income is allocable to Class B units under the two class method. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
15. Segment Information | |||||||||||||||||
The Partnership prepares segment information in accordance with GAAP. Certain items below Income from operations in the accompanying Condensed Consolidated Statements of Operations, certain compensation expense, certain other non-cash items and any gains (losses) from derivative instruments are not allocated to individual segments. Management does not consider these items allocable to or controllable by any individual segment and therefore excludes these items when evaluating segment performance. Segment results are also adjusted to exclude the portion of operating income attributable to the non-controlling interests. For each period presented, the Southwest segment includes the operations of the Partnership’s processing facilities in Corpus Christi, Texas that were reported separately in the Gulf Coast segment in the prior year. The Gulf Coast operations are no longer material to the Partnership’s operations and no longer meaningful presented separately. In prior year interim financial statements Utica and Marcellus were combined into one segment due to the immateriality of the Utica operations. The Marcellus segment was referred to as the Liberty segment in prior periods. | |||||||||||||||||
The tables below present the Partnership’s segment profit measure, Operating income before items not allocated to segments, for the three and nine months ended September 30, 2013 and 2012 and capital expenditures for the nine months ended September 30, 2013 and 2012 for the reported segments (in thousands): | |||||||||||||||||
Three months ended September 30, 2013: | |||||||||||||||||
Marcellus | Utica | Northeast | Southwest | Total | |||||||||||||
Segment revenue | $ | 147,290 | $ | 8,373 | $ | 48,829 | $ | 247,885 | $ | 452,377 | |||||||
Purchased product costs | 36,995 | — | 15,330 | 139,347 | 191,672 | ||||||||||||
Net operating margin | 110,295 | 8,373 | 33,499 | 108,538 | 260,705 | ||||||||||||
Facility expenses | 29,621 | 9,858 | 7,359 | 32,559 | 79,397 | ||||||||||||
Portion of operating loss attributable to non-controlling interests | — | (599 | ) | — | 40 | (559 | ) | ||||||||||
Operating income (loss) before items not allocated to segments | $ | 80,674 | $ | (886 | ) | $ | 26,140 | $ | 75,939 | $ | 181,867 | ||||||
Three months ended September 30, 2012: | |||||||||||||||||
Marcellus | Utica | Northeast | Southwest (1) | Total | |||||||||||||
Segment revenue | $ | 78,707 | $ | 145 | $ | 39,987 | $ | 199,394 | $ | 318,233 | |||||||
Purchased product costs | 16,203 | — | 11,054 | 92,112 | 119,369 | ||||||||||||
Net operating margin | 62,504 | 145 | 28,933 | 107,282 | 198,864 | ||||||||||||
Facility expenses | 18,933 | 1,308 | 6,267 | 28,870 | 55,378 | ||||||||||||
Portion of operating (loss) income attributable to non-controlling interests | — | (627 | ) | — | 67 | (560 | ) | ||||||||||
Operating income (loss) before items not allocated to segments | $ | 43,571 | $ | (536 | ) | $ | 22,666 | $ | 78,345 | $ | 144,046 | ||||||
(1) Amounts have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. | |||||||||||||||||
The following is a reconciliation of segment revenue to total revenue and operating income before items not allocated to segments to income before provision for income tax for the three months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||
Three months ended September 30, | |||||||||||||||||
2013 | 2012 (3) | ||||||||||||||||
Total segment revenue | $ | 452,377 | $ | 318,233 | |||||||||||||
Derivative loss not allocated to segments | (30,318 | ) | (36,400 | ) | |||||||||||||
Revenue deferral adjustment and other (1) | (1,543 | ) | (1,257 | ) | |||||||||||||
Total revenue | $ | 420,516 | $ | 280,576 | |||||||||||||
Operating income before items not allocated to segments | $ | 181,867 | $ | 144,046 | |||||||||||||
Portion of operating loss attributable to non-controlling interests | (559 | ) | (560 | ) | |||||||||||||
Derivative loss not allocated to segments | (52,884 | ) | (52,071 | ) | |||||||||||||
Revenue deferral adjustment and other (1) | (1,543 | ) | (1,257 | ) | |||||||||||||
Compensation expense included in facility expenses not allocated to segments | (833 | ) | (193 | ) | |||||||||||||
Facility expenses adjustments (2) | 2,688 | 2,688 | |||||||||||||||
Selling, general and administrative expenses | (26,647 | ) | (21,723 | ) | |||||||||||||
Depreciation | (76,323 | ) | (46,554 | ) | |||||||||||||
Amortization of intangible assets | (16,003 | ) | (14,988 | ) | |||||||||||||
Loss on disposal of property, plant and equipment | (1,840 | ) | (655 | ) | |||||||||||||
Accretion of asset retirement obligations | (160 | ) | (140 | ) | |||||||||||||
Income from operations | 7,763 | 8,593 | |||||||||||||||
Earnings from unconsolidated affiliates | 896 | 706 | |||||||||||||||
Interest income | 27 | 64 | |||||||||||||||
Interest expense | (38,889 | ) | (30,621 | ) | |||||||||||||
Amortization of deferred financing costs and discount (a component of interest expense) | (1,584 | ) | (1,428 | ) | |||||||||||||
Miscellaneous income, net | 1,504 | 1 | |||||||||||||||
Loss before provision for income tax | $ | (30,283 | ) | $ | (22,685 | ) | |||||||||||
(1) Amount relates primarily to certain contracts in which the cash consideration that the Partnership receives for providing service is greater during the initial years of the contract compared to the later years. In accordance with GAAP, the revenue is recognized evenly over the term of the contract as the Partnership will perform a similar level of service for the entire term. Therefore, the revenue recognized in the current reporting period is less than the cash received. However, the Partnership’s chief operating decision maker and management evaluate the segment performance based on the cash consideration received and therefore, the impact of the revenue deferrals is excluded for segment reporting purposes. For the three months ended September 30, 2013, approximately $0.2 million and $1.5 million of the revenue deferral adjustment is attributable to the Southwest segment and Northeast segment, respectively. In comparison, for the three months ended September 30, 2012, approximately $0.2 million and $1.4 million of the revenue deferral adjustment was attributable to the Southwest segment and Northeast segment, respectively. Beginning in 2015, the cash consideration received from these contracts will decline and the reported segment revenue will be less than the revenue recognized for GAAP purposes. Other consists of management fee revenues from an unconsolidated affiliate of $0.2 million for the three months ended September 30, 2013 compared to $0.3 million for three months ended September 30, 2012. | |||||||||||||||||
(2) Facility expenses adjustments consist of the reallocation of the interest expense related to the SMR, which is included in facility expenses for the purposes of evaluating the performance of the Southwest segment. | |||||||||||||||||
(3) Amounts have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. | |||||||||||||||||
Nine months ended September 30, 2013: | |||||||||||||||||
Marcellus | Utica | Northeast | Southwest | Total | |||||||||||||
Segment revenue | $ | 375,844 | $ | 12,590 | $ | 151,530 | $ | 684,093 | $ | 1,224,057 | |||||||
Purchased product costs | 72,781 | — | 50,118 | 376,689 | 499,588 | ||||||||||||
Net operating margin | 303,063 | 12,590 | 101,412 | 307,404 | 724,469 | ||||||||||||
Facility expenses | 74,529 | 20,232 | 20,538 | 91,027 | 206,326 | ||||||||||||
Portion of operating (loss) income attributable to non-controlling interests | — | (3,081 | ) | — | 157 | (2,924 | ) | ||||||||||
Operating income (loss) before items not allocated to segments | $ | 228,534 | $ | (4,561 | ) | $ | 80,874 | $ | 216,220 | $ | 521,067 | ||||||
Capital expenditures | $ | 1,097,440 | $ | 961,538 | $ | 3,418 | $ | 108,440 | $ | 2,170,836 | |||||||
Capital expenditures not allocated to segments | 5,883 | ||||||||||||||||
Total capital expenditures | $ | 2,176,719 | |||||||||||||||
Nine months ended September 30, 2012: | |||||||||||||||||
Marcellus | Utica | Northeast | Southwest (1) | Total | |||||||||||||
Segment revenue | $ | 213,761 | $ | 145 | $ | 168,956 | $ | 641,321 | $ | 1,024,183 | |||||||
Purchased product costs | 48,856 | — | 49,662 | 288,137 | 386,655 | ||||||||||||
Net operating margin | 164,905 | 145 | 119,294 | 353,184 | 637,528 | ||||||||||||
Facility expenses | 44,544 | 1,591 | 17,577 | 92,964 | 156,676 | ||||||||||||
Portion of operating (loss) income attributable to non-controlling interests | — | (740 | ) | — | 98 | (642 | ) | ||||||||||
Operating income (loss) before items not allocated to segments | $ | 120,361 | $ | (706 | ) | $ | 101,717 | $ | 260,122 | $ | 481,494 | ||||||
Capital expenditures | $ | 937,008 | $ | 82,366 | $ | 70,206 | $ | 145,213 | $ | 1,234,793 | |||||||
Capital expenditures not allocated to segments | 4,912 | ||||||||||||||||
Total capital expenditures | $ | 1,239,705 | |||||||||||||||
(1) Amounts have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. | |||||||||||||||||
The following is a reconciliation of segment revenue to total revenue and operating income before items not allocated to segments to income before provision for income tax for the nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2013 | 2012 (3) | ||||||||||||||||
Total segment revenue | $ | 1,224,057 | $ | 1,024,183 | |||||||||||||
Derivative gain not allocated to segments | (10,804 | ) | 50,952 | ||||||||||||||
Revenue deferral adjustment and other (1) | (4,344 | ) | (4,474 | ) | |||||||||||||
Total revenue | $ | 1,208,909 | $ | 1,070,661 | |||||||||||||
Operating income before items not allocated to segments | $ | 521,067 | $ | 481,494 | |||||||||||||
Portion of loss income attributable to non-controlling interests | (2,924 | ) | (642 | ) | |||||||||||||
Derivative (loss) gain not allocated to segments | (2,702 | ) | 70,952 | ||||||||||||||
Revenue deferral adjustment and other(1) | (4,344 | ) | (4,474 | ) | |||||||||||||
Compensation expense included in facility expenses not allocated to segments | (1,587 | ) | (826 | ) | |||||||||||||
Facility expenses adjustments (2) | 8,064 | 8,064 | |||||||||||||||
Selling, general and administrative expenses | (77,388 | ) | (68,471 | ) | |||||||||||||
Depreciation | (215,902 | ) | (127,472 | ) | |||||||||||||
Amortization of intangible assets | (47,925 | ) | (38,280 | ) | |||||||||||||
Gain (loss) on disposal of property, plant and equipment | 35,758 | (2,983 | ) | ||||||||||||||
Accretion of asset retirement obligations | (669 | ) | (536 | ) | |||||||||||||
Income from operations | 211,448 | 316,826 | |||||||||||||||
Earnings from unconsolidated affiliates | 1,561 | 2,254 | |||||||||||||||
Interest income | 238 | 295 | |||||||||||||||
Interest expense | (114,180 | ) | (86,855 | ) | |||||||||||||
Amortization of deferred financing costs and discount (a component of interest expense) | (5,198 | ) | (3,943 | ) | |||||||||||||
Loss on redemption of debt | (38,455 | ) | — | ||||||||||||||
Miscellaneous income, net | 1,510 | 63 | |||||||||||||||
Income before provision for income tax | $ | 56,924 | $ | 228,640 | |||||||||||||
(1) Amount relates primarily to certain contracts in which the cash consideration that the Partnership receives for providing service is greater during the initial years of the contract compared to the later years. In accordance with GAAP, the revenue is recognized evenly over the term of the contract as the Partnership will perform a similar level of service for the entire term. Therefore, the revenue recognized in the current reporting period is less than the cash received. However, the Partnership’s chief operating decision maker and management evaluate the segment performance based on the cash consideration received and, therefore, the impact of the revenue deferrals is excluded for segment reporting purposes. For the nine months ended September 30, 2013, approximately $0.6 million and $4.5 million of the revenue deferral adjustment is attributable to the Southwest segment and Northeast segment, respectively. In comparison, for the nine months ended September 30, 2012, approximately $0.6 million and $5.0 million of the revenue deferral adjustment was attributable to the Southwest segment and Northeast segment, respectively. Beginning in 2015, the cash consideration received from these contracts will decline and the reported segment revenue will be less than the revenue recognized for GAAP purposes. The other consists of management fee revenues from an unconsolidated affiliate of $0.8 million for the nine months ended September 30, 2013 compared to $1.1 million for the nine months ended September 30, 2012. | |||||||||||||||||
(2) Facility expenses adjustments consist of the reallocation of the interest expense related to the SMR, which is included in facility expenses for the purposes of evaluating the performance of the Southwest segment. | |||||||||||||||||
(3) Amounts have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. | |||||||||||||||||
The table below presents information about segment assets as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||
September 30, 2013 | December 31, 2012 (2) | ||||||||||||||||
Marcellus | $ | 4,143,180 | $ | 3,172,144 | |||||||||||||
Utica | 1,379,200 | 439,987 | |||||||||||||||
Northeast | 580,788 | 578,122 | |||||||||||||||
Southwest | 2,371,539 | 2,086,215 | |||||||||||||||
Total segment assets | 8,474,707 | 6,276,468 | |||||||||||||||
Assets not allocated to segments: | |||||||||||||||||
Certain cash and cash equivalents | 250,133 | 261,473 | |||||||||||||||
Fair value of derivatives | 20,265 | 30,382 | |||||||||||||||
Investment in unconsolidated affiliate | 68,193 | 63,054 | |||||||||||||||
Other (1) | 104,418 | 96,985 | |||||||||||||||
Total assets | $ | 8,917,716 | $ | 6,728,362 | |||||||||||||
(1) Includes corporate fixed assets, deferred financing costs, income tax receivable, receivables and other corporate assets not allocated to segments. | |||||||||||||||||
(2) Amounts have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. |
Supplemental_Condensed_Consoli
Supplemental Condensed Consolidating Financial Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Supplemental Condensed Consolidating Financial Information | ' | ||||||||||||||||
Supplemental Condensed Consolidating Financial Information | ' | ||||||||||||||||
16. Supplemental Condensed Consolidating Financial Information | |||||||||||||||||
MarkWest Energy Partners has no significant operations independent of its subsidiaries. As of September 30, 2013, the Partnership’s obligations under the outstanding Senior Notes (see Note 10) were fully, jointly and severally guaranteed, by all of the subsidiaries that are owned 100% by the Partnership, other than MarkWest Liberty Midstream and its subsidiaries. The guarantees are unconditional except for certain customary circumstances in which a subsidiary would be released from the guarantee under the indentures (see Note 15 to the Consolidated Financial Statements included in Item 8 of the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2012 for discussion of these circumstances). Subsidiaries that are not 100% owned by the Partnership do not guarantee the Senior Notes. For the purpose of the following financial information, the Partnership’s investments in its subsidiaries and the guarantor subsidiaries’ investments in their subsidiaries are presented in accordance with the equity method of accounting. The operations, cash flows and financial position of the co-issuer, MarkWest Energy Finance Corporation, are not material and, therefore, have been included with the Parent’s financial information. Condensed consolidating financial information for MarkWest Energy Partners and its combined guarantor and combined non-guarantor subsidiaries as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012 is as follows (in thousands): | |||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 181,213 | $ | 119,886 | $ | 27,054 | $ | — | $ | 328,153 | |||||||
Restricted cash | — | — | 10,000 | — | 10,000 | ||||||||||||
Receivables and other current assets | 3,146 | 233,522 | 89,765 | — | 326,433 | ||||||||||||
Intercompany receivables | 440,839 | 6,659 | 49,494 | (496,992 | ) | — | |||||||||||
Fair value of derivative instruments | — | 14,872 | 838 | — | 15,710 | ||||||||||||
Total current assets | 625,198 | 374,939 | 177,151 | (496,992 | ) | 680,296 | |||||||||||
Total property, plant and equipment, net | 3,598 | 2,174,893 | 4,940,452 | (78,120 | ) | 7,040,823 | |||||||||||
Other long-term assets: | |||||||||||||||||
Restricted Cash | — | — | 10,000 | — | 10,000 | ||||||||||||
Investment in unconsolidated affiliate | — | 68,193 | — | — | 68,193 | ||||||||||||
Investment in consolidated affiliates | 5,716,977 | 3,766,735 | — | (9,483,712 | ) | — | |||||||||||
Intangibles, net of accumulated amortization | — | 608,748 | 282,764 | — | 891,512 | ||||||||||||
Fair value of derivative instruments | — | 4,214 | 341 | — | 4,555 | ||||||||||||
Intercompany notes receivable | 225,000 | — | — | (225,000 | ) | — | |||||||||||
Other long-term assets | 54,046 | 92,380 | 75,911 | — | 222,337 | ||||||||||||
Total assets | $ | 6,624,819 | $ | 7,090,102 | $ | 5,486,619 | $ | (10,283,824 | ) | $ | 8,917,716 | ||||||
LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Intercompany payables | $ | 1 | $ | 486,870 | $ | 10,121 | $ | (496,992 | ) | $ | — | ||||||
Fair value of derivative instruments | — | 27,460 | 2,019 | — | 29,479 | ||||||||||||
Other current liabilities | 47,522 | 214,180 | 655,079 | (2,068 | ) | 914,713 | |||||||||||
Total current liabilities | 47,523 | 728,510 | 667,219 | (499,060 | ) | 944,192 | |||||||||||
Deferred income taxes | 3,061 | 256,974 | — | — | 260,035 | ||||||||||||
Long-term intercompany financing payable | — | 225,000 | 98,018 | (323,018 | ) | — | |||||||||||
Fair value of derivative instruments | — | 20,996 | 48 | — | 21,044 | ||||||||||||
Long-term debt, net of discounts | 3,022,887 | — | — | — | 3,022,887 | ||||||||||||
Other long-term liabilities | 2,838 | 141,645 | 8,394 | — | 152,877 | ||||||||||||
Redeemable non-controlling interest | — | — | — | 366,238 | 366,238 | ||||||||||||
Equity: | |||||||||||||||||
Common units | 2,946,485 | 5,716,977 | 4,712,940 | (10,407,951 | ) | 2,968,451 | |||||||||||
Class B units | 602,025 | — | — | — | 602,025 | ||||||||||||
Non-controlling interest in consolidated subsidiaries | — | — | — | 579,967 | 579,967 | ||||||||||||
Total equity | 3,548,510 | 5,716,977 | 4,712,940 | (9,827,984 | ) | 4,150,443 | |||||||||||
Total liabilities and equity | $ | 6,624,819 | $ | 7,090,102 | $ | 5,486,619 | $ | (10,283,824 | ) | $ | 8,917,716 | ||||||
As of December 31, 2012 (1) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 210,015 | $ | 102,979 | $ | 32,762 | $ | — | $ | 345,756 | |||||||
Restricted cash | — | — | 25,500 | — | 25,500 | ||||||||||||
Receivables and other current assets | 9,191 | 178,913 | 74,658 | — | 262,762 | ||||||||||||
Intercompany receivables | 812,562 | 18,472 | 32,656 | (863,690 | ) | — | |||||||||||
Fair value of derivative instruments | — | 18,389 | 1,115 | — | 19,504 | ||||||||||||
Total current assets | 1,031,768 | 318,753 | 166,691 | (863,690 | ) | 653,522 | |||||||||||
Total property, plant and equipment, net | 3,542 | 1,999,474 | 3,032,121 | (95,519 | ) | 4,939,618 | |||||||||||
Other long-term assets: | |||||||||||||||||
Restricted cash | — | — | 10,000 | — | 10,000 | ||||||||||||
Investment in unconsolidated affiliate | — | 63,054 | — | — | 63,054 | ||||||||||||
Investment in consolidated affiliates | 4,104,473 | 2,719,920 | — | (6,824,393 | ) | — | |||||||||||
Intangibles, net of accumulated amortization | — | 559,320 | 295,835 | — | 855,155 | ||||||||||||
Fair value of derivative instruments | — | 10,878 | — | — | 10,878 | ||||||||||||
Intercompany notes receivable | 225,000 | — | — | (225,000 | ) | — | |||||||||||
Other long-term assets | 50,866 | 70,009 | 75,260 | — | 196,135 | ||||||||||||
Total assets | $ | 5,415,649 | $ | 5,741,408 | $ | 3,579,907 | $ | (8,008,602 | ) | $ | 6,728,362 | ||||||
LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Intercompany payables | $ | 461 | $ | 839,543 | $ | 23,686 | $ | (863,690 | ) | $ | — | ||||||
Fair value of derivative instruments | — | 27,062 | 167 | — | 27,229 | ||||||||||||
Other current liabilities | 42,301 | 197,934 | 472,462 | (1,892 | ) | 710,805 | |||||||||||
Total current liabilities | 42,762 | 1,064,539 | 496,315 | (865,582 | ) | 738,034 | |||||||||||
Deferred income taxes | 2,906 | 186,522 | — | — | 189,428 | ||||||||||||
Long-term intercompany financing payable | — | 225,000 | 99,592 | (324,592 | ) | — | |||||||||||
Fair value of derivative instruments | — | 32,190 | — | — | 32,190 | ||||||||||||
Long-term debt, net of discounts | 2,523,051 | — | — | — | 2,523,051 | ||||||||||||
Other long-term liabilities | 2,959 | 128,684 | 2,618 | — | 134,261 | ||||||||||||
Equity: | |||||||||||||||||
Common Units | 2,091,440 | 4,104,473 | 2,981,382 | (7,079,891 | ) | 2,097,404 | |||||||||||
Class B Units | 752,531 | — | — | — | 752,531 | ||||||||||||
Non-controlling interest in consolidated subsidiaries | — | — | — | 261,463 | 261,463 | ||||||||||||
Total equity | 2,843,971 | 4,104,473 | 2,981,382 | (6,818,428 | ) | 3,111,398 | |||||||||||
Total liabilities and equity | $ | 5,415,649 | $ | 5,741,408 | $ | 3,579,907 | $ | (8,008,602 | ) | $ | 6,728,362 | ||||||
(1) The condensed consolidating financial statements have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. The adjustments to the amounts previously reported were not material. | |||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Total revenue | $ | — | $ | 277,120 | $ | 152,225 | $ | (8,829 | ) | $ | 420,516 | ||||||
Operating expenses: | |||||||||||||||||
Purchased product costs | — | 174,754 | 37,152 | — | 211,906 | ||||||||||||
Facility expenses | — | 39,781 | 40,598 | (505 | ) | 79,874 | |||||||||||
Selling, general and administrative expenses | 12,297 | 7,900 | 8,077 | (1,627 | ) | 26,647 | |||||||||||
Depreciation and amortization | 155 | 45,898 | 47,570 | (1,297 | ) | 92,326 | |||||||||||
Other operating expenses (income) | — | 1,970 | 30 | — | 2,000 | ||||||||||||
Total operating expenses | 12,452 | 270,303 | 133,427 | (3,429 | ) | 412,753 | |||||||||||
(Loss) income from operations | (12,452 | ) | 6,817 | 18,798 | (5,400 | ) | 7,763 | ||||||||||
Earnings from consolidated affiliates | 22,899 | 12,229 | — | (35,128 | ) | — | |||||||||||
Other expense, net | (38,339 | ) | (6,396 | ) | (2,992 | ) | 9,681 | (38,046 | ) | ||||||||
Income before provision for income tax | (27,892 | ) | 12,650 | 15,806 | (30,847 | ) | (30,283 | ) | |||||||||
Provision for income tax (benefit) expense | (7 | ) | (10,249 | ) | — | — | (10,256 | ) | |||||||||
Net income | (27,885 | ) | 22,899 | 15,806 | (30,847 | ) | (20,027 | ) | |||||||||
Net income attributable to non-controlling interest | — | — | — | (3,577 | ) | (3,577 | ) | ||||||||||
Net income attributable to the Partnership’s unitholders | $ | (27,885 | ) | $ | 22,899 | $ | 15,806 | $ | (34,424 | ) | $ | (23,604 | ) | ||||
Three months ended September 30, 2012 (1) | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Total revenue | $ | — | $ | 205,629 | $ | 78,047 | $ | (3,100 | ) | $ | 280,576 | ||||||
Operating expenses: | |||||||||||||||||
Purchased product costs | — | 114,685 | 16,327 | — | 131,012 | ||||||||||||
Facility expenses | — | 36,437 | 20,475 | (1 | ) | 56,911 | |||||||||||
Selling, general and administrative expenses | 10,241 | 5,633 | 6,943 | (1,094 | ) | 21,723 | |||||||||||
Depreciation and amortization | 146 | 41,593 | 21,381 | (1,578 | ) | 61,542 | |||||||||||
Other operating expenses | — | 488 | 307 | — | 795 | ||||||||||||
Total operating expenses | 10,387 | 198,836 | 65,433 | (2,673 | ) | 271,983 | |||||||||||
(Loss) income from operations | (10,387 | ) | 6,793 | 12,614 | (427 | ) | 8,593 | ||||||||||
Earnings from consolidated affiliates | 20,122 | 10,387 | — | (30,509 | ) | — | |||||||||||
Other (expense) income, net | (24,637 | ) | (4,447 | ) | (3,152 | ) | 958 | (31,278 | ) | ||||||||
(Loss) income before provision for income tax | (14,902 | ) | 12,733 | 9,462 | (29,978 | ) | (22,685 | ) | |||||||||
Provision for income tax expense | (31 | ) | (7,389 | ) | — | — | (7,420 | ) | |||||||||
Net (loss) income | (14,871 | ) | 20,122 | 9,462 | (29,978 | ) | (15,265 | ) | |||||||||
Net income attributable to non-controlling interest | — | — | — | 925 | 925 | ||||||||||||
Net (loss) income attributable to the Partnership’s unitholders | $ | (14,871 | ) | $ | 20,122 | $ | 9,462 | $ | (29,053 | ) | $ | (14,340 | ) | ||||
(1) The condensed consolidating financial statements have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. The adjustments to the amounts previously reported were not material. | |||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Total revenue | $ | — | $ | 846,185 | $ | 388,082 | $ | (25,358 | ) | $ | 1,208,909 | ||||||
Operating expenses: | |||||||||||||||||
Purchased product costs | — | 415,517 | 73,169 | — | 488,686 | ||||||||||||
Facility expenses | — | 106,556 | 96,985 | (892 | ) | 202,649 | |||||||||||
Selling, general and administrative expenses | 36,405 | 21,519 | 23,605 | (4,141 | ) | 77,388 | |||||||||||
Depreciation and amortization | 674 | 135,408 | 131,865 | (4,120 | ) | 263,827 | |||||||||||
Other operating expenses (income) | — | 3,308 | (40,477 | ) | 2,080 | (35,089 | ) | ||||||||||
Total operating expenses | 37,079 | 682,308 | 285,147 | (7,073 | ) | 997,461 | |||||||||||
(Loss) income from operations | (37,079 | ) | 163,877 | 102,935 | (18,285 | ) | 211,448 | ||||||||||
Earnings from consolidated affiliates | 225,773 | 93,958 | — | (319,731 | ) | — | |||||||||||
Loss on redemption of debt | (38,455 | ) | — | — | — | (38,455 | ) | ||||||||||
Other expense, net | (121,441 | ) | (19,632 | ) | (9,274 | ) | 34,278 | (116,069 | ) | ||||||||
Income before provision for income tax | 28,798 | 238,203 | 93,661 | (303,738 | ) | 56,924 | |||||||||||
Provision for income tax (benefit) expense | 154 | 12,430 | — | — | 12,584 | ||||||||||||
Net income | 28,644 | 225,773 | 93,661 | (303,738 | ) | 44,340 | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 297 | 297 | ||||||||||||
Net (loss) income attributable to the Partnership’s unitholders | $ | 28,644 | $ | 225,773 | $ | 93,661 | $ | (303,441 | ) | $ | 44,637 | ||||||
Nine months ended September 30, 2012 (1) | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Total revenue | $ | — | $ | 858,227 | $ | 217,257 | $ | (4,823 | ) | $ | 1,070,661 | ||||||
Operating expenses: | |||||||||||||||||
Purchased product costs | — | 316,327 | 49,192 | — | 365,519 | ||||||||||||
Facility expenses | — | 103,484 | 47,248 | (158 | ) | 150,574 | |||||||||||
Selling, general and administrative expenses | 37,197 | 13,333 | 20,697 | (2,756 | ) | 68,471 | |||||||||||
Depreciation and amortization | 458 | 121,520 | 46,719 | (2,945 | ) | 165,752 | |||||||||||
Other operating expenses | — | 2,227 | 1,292 | — | 3,519 | ||||||||||||
Total operating expenses | 37,655 | 556,891 | 165,148 | (5,859 | ) | 753,835 | |||||||||||
(Loss) income from operations | (37,655 | ) | 301,336 | 52,109 | 1,036 | 316,826 | |||||||||||
Earnings from consolidated affiliates | 294,036 | 48,134 | — | (342,170 | ) | — | |||||||||||
Other expense, net | (68,681 | ) | (14,570 | ) | (5,521 | ) | 586 | (88,186 | ) | ||||||||
Income before provision for income tax | 187,700 | 334,900 | 46,588 | (340,548 | ) | 228,640 | |||||||||||
Provision for income tax expense | 734 | 40,864 | — | — | 41,598 | ||||||||||||
Net income (loss) | 186,966 | 294,036 | 46,588 | (340,548 | ) | 187,042 | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 1,546 | 1,546 | ||||||||||||
Net income attributable to the Partnership’s unitholders | $ | 186,966 | $ | 294,036 | $ | 46,588 | $ | (339,002 | ) | $ | 188,588 | ||||||
(1) The condensed consolidating financial statements have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. The adjustments to the amounts previously reported were not material. | |||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Net cash (used in) provided by operating activities | $ | (136,817 | ) | $ | 265,484 | $ | 188,042 | $ | 13,950 | $ | 330,659 | ||||||
Cash flows from investing activities: | |||||||||||||||||
Restricted cash | — | — | 15,500 | — | 15,500 | ||||||||||||
Capital expenditures | (655 | ) | (110,921 | ) | (2,049,794 | ) | (15,349 | ) | (2,176,719 | ) | |||||||
Equity investments in consolidated affiliates | (43,763 | ) | (1,404,800 | ) | — | 1,448,563 | — | ||||||||||
Investment in unconsolidated affiliates | — | (8,530 | ) | — | — | (8,530 | ) | ||||||||||
Distributions from consolidated affiliates | 72,673 | 455,966 | — | (528,639 | ) | — | |||||||||||
Acquisition of business, net of cash acquired | — | (225,210 | ) | — | — | (225,210 | ) | ||||||||||
Proceeds from disposal of property, plant and equipment | — | 582 | 208,070 | — | 208,652 | ||||||||||||
Net cash flows provided by (used in) investing activities | 28,255 | (1,292,913 | ) | (1,826,224 | ) | 904,575 | (2,186,307 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from public equity offerings, net | 1,039,849 | — | — | — | 1,039,849 | ||||||||||||
Proceeds from long-term debt | 1,000,000 | — | — | — | 1,000,000 | ||||||||||||
Payments of long-term debt | (501,112 | ) | — | — | — | (501,112 | ) | ||||||||||
Payments of premiums on redemption of long-term debt | (31,516 | ) | — | — | — | (31,516 | ) | ||||||||||
Payments for debt issuance costs, deferred financing costs and registration costs | (14,046 | ) | — | — | — | (14,046 | ) | ||||||||||
Payments related to intercompany financing, net | — | — | (1,399 | ) | 1,399 | — | |||||||||||
Contributions from parent and affiliates | — | 43,763 | 1,404,800 | (1,448,563 | ) | — | |||||||||||
Contributions from non-controlling interest | — | — | 685,219 | — | 685,219 | ||||||||||||
Share-based payment activity | (5,212 | ) | 650 | — | — | (4,562 | ) | ||||||||||
Payments of distributions | (333,946 | ) | (72,673 | ) | (456,146 | ) | 528,639 | (334,126 | ) | ||||||||
Payments of SMR liability | — | (1,661 | ) | — | — | (1,661 | ) | ||||||||||
Intercompany advances, net | (1,074,257 | ) | 1,074,257 | — | — | — | |||||||||||
Net cash flows (used in) provided by financing activities | 79,760 | 1,044,336 | 1,632,474 | (918,525 | ) | 1,838,045 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (28,802 | ) | 16,907 | (5,708 | ) | — | (17,603 | ) | |||||||||
Cash and cash equivalents at beginning of year | 210,015 | 102,979 | 32,762 | — | 345,756 | ||||||||||||
Cash and cash equivalents at end of period | $ | 181,213 | $ | 119,886 | $ | 27,054 | $ | — | $ | 328,153 | |||||||
Nine months ended September 30, 2012 (1) | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Net cash (used in) provided by operating activities | $ | (89,558 | ) | $ | 305,694 | $ | 170,976 | $ | (1,328 | ) | $ | 385,784 | |||||
Cash flows from investing activities: | |||||||||||||||||
Restricted cash | — | — | 1,003 | — | 1,003 | ||||||||||||
Capital expenditures | (120 | ) | (236,153 | ) | (1,005,270 | ) | 1,838 | (1,239,705 | ) | ||||||||
Equity investments | (42,120 | ) | (1,367,484 | ) | — | 1,408,765 | (839 | ) | |||||||||
Acquisition of business, net of cash acquired | — | — | (506,797 | ) | — | (506,797 | ) | ||||||||||
Distributions from consolidated affiliates | 48,973 | 95,814 | — | (144,787 | ) | — | |||||||||||
Collection of intercompany notes, net | (12,300 | ) | — | — | 12,300 | — | |||||||||||
Proceeds from disposal of property, plant and equipment | — | 1,718 | 84 | (1,213 | ) | 589 | |||||||||||
Net cash flows used in investing activities | (5,567 | ) | (1,506,105 | ) | (1,510,980 | ) | 1,276,903 | (1,745,749 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from public equity offering, net | 1,191,066 | — | — | — | 1,191,066 | ||||||||||||
Proceeds from Credit Facility | 511,100 | — | — | — | 511,100 | ||||||||||||
Payments of Credit Facility | (577,100 | ) | — | — | — | (577,100 | ) | ||||||||||
Proceeds from long-term debt | 742,613 | — | — | — | 742,613 | ||||||||||||
Payments related to intercompany financing, net | — | 12,300 | (703 | ) | (11,597 | ) | — | ||||||||||
Payments for deferred financing costs | (14,184 | ) | — | — | — | (14,184 | ) | ||||||||||
Contributions from parent and affiliates | — | 42,120 | 1,366,645 | (1,408,765 | ) | — | |||||||||||
Contributions from non-controlling interest | — | — | 56,101 | — | 56,101 | ||||||||||||
Share-based payment activity | (8,061 | ) | 2,216 | — | — | (5,845 | ) | ||||||||||
Payment of distributions | (244,169 | ) | (48,973 | ) | (95,885 | ) | 144,787 | (244,240 | ) | ||||||||
Payments of SMR liability | — | (1,525 | ) | — | — | (1,525 | ) | ||||||||||
Intercompany advances, net | (1,206,149 | ) | 1,206,149 | — | — | — | |||||||||||
Net cash flows provided by financing activities | 395,116 | 1,212,287 | 1,326,158 | (1,275,575 | ) | 1,657,986 | |||||||||||
Net increase (decrease) in cash | 299,991 | 11,876 | (13,846 | ) | — | 298,021 | |||||||||||
Cash and cash equivalents at beginning of year | 22 | 99,580 | 14,730 | — | 114,332 | ||||||||||||
Cash and cash equivalents at end of period | $ | 300,013 | $ | 111,456 | $ | 884 | $ | — | $ | 412,353 | |||||||
(1) The condensed consolidating financial statements have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. The adjustments to the amounts previously reported were not material. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
17. Supplemental Cash Flow Information | ||||||||
The following table provides information regarding supplemental cash flow information (in thousands): | ||||||||
Nine months ended September 30, | ||||||||
2013 | 2012 | |||||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest, net of amounts capitalized | $ | 111,626 | $ | 73,624 | ||||
Cash (received) paid for income taxes, net | (16,414 | ) | 18,925 | |||||
Supplemental schedule of non-cash investing and financing activities: | ||||||||
Accrued property, plant and equipment | $ | 614,355 | $ | 389,599 | ||||
Interest capitalized on construction in progress | 26,232 | 16,353 | ||||||
Issuance of common units for vesting of share-based payment awards | 4,861 | 2,506 |
Variable_Interest_Entity_Table
Variable Interest Entity (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Variable Interest Entities | ' | |||||||||||||||||||
Schedule of misstatement impact on condensed consolidated balance sheet | ' | |||||||||||||||||||
The impact of the misstatement is shown in the tables below (in thousands). | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Balance Sheet | As previously | As restated | ||||||||||||||||||
reported | ||||||||||||||||||||
Cash and cash equivalents | $ | 347,899 | $ | 345,756 | ||||||||||||||||
Receivables, net | 198,769 | 197,977 | ||||||||||||||||||
Other current assets | 35,053 | 34,871 | ||||||||||||||||||
Total current assets | 656,639 | 653,522 | ||||||||||||||||||
Property, plant and equipment | 5,700,176 | 5,542,316 | ||||||||||||||||||
Less: accumulated depreciation | (624,548 | ) | (602,698 | ) | ||||||||||||||||
Total property, plant and equipment, net | 5,075,628 | 4,939,618 | ||||||||||||||||||
Investment in unconsolidated affiliates | 31,179 | 63,054 | ||||||||||||||||||
Other long-term assets | 2,242 | 2,140 | ||||||||||||||||||
Total assets | 6,835,716 | 6,728,362 | ||||||||||||||||||
Accounts payable | 320,645 | 320,627 | ||||||||||||||||||
Accrued liabilities | 391,352 | 390,178 | ||||||||||||||||||
Total current liabilities | 739,226 | 738,034 | ||||||||||||||||||
Deferred income taxes | 191,318 | 189,428 | ||||||||||||||||||
Other long-term liabilities | 134,340 | 134,261 | ||||||||||||||||||
Common units | 2,134,714 | 2,097,404 | ||||||||||||||||||
Non-controlling interest in consolidated subsidiaries | 328,346 | 261,463 | ||||||||||||||||||
Total equity | 3,215,591 | 3,111,398 | ||||||||||||||||||
Total liabilities and equity | 6,835,716 | 6,728,362 | ||||||||||||||||||
Schedule of misstatement impact on condensed consolidated statement of operations | ' | |||||||||||||||||||
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | |||||||||||||||||||
Statement of Operations | As previously | As restated | As previously | As restated | ||||||||||||||||
reported | reported | |||||||||||||||||||
Revenue | $ | 320,137 | $ | 316,976 | $ | 1,029,304 | $ | 1,019,709 | ||||||||||||
Total revenue | 283,737 | 280,576 | 1,080,256 | 1,070,661 | ||||||||||||||||
Facility expenses | 53,293 | 52,883 | 150,671 | 149,438 | ||||||||||||||||
Selling, general and administrative expenses | 21,922 | 21,723 | 69,025 | 68,471 | ||||||||||||||||
Depreciation | 48,136 | 46,554 | 132,199 | 127,472 | ||||||||||||||||
Accretion of asset retirement obligations | 141 | 140 | 540 | 536 | ||||||||||||||||
Total operating expenses | 274,175 | 271,983 | 760,353 | 753,835 | ||||||||||||||||
Income from operations | 9,562 | 8,593 | 319,903 | 316,826 | ||||||||||||||||
Equity in earnings from unconsolidated affiliates | 246 | 706 | 788 | 2,254 | ||||||||||||||||
(Loss) income before provision for income tax | (22,176 | ) | (22,685 | ) | 230,251 | 228,640 | ||||||||||||||
Net (loss) income | (14,756 | ) | (15,265 | ) | 188,653 | 187,042 | ||||||||||||||
Net loss (income) attributable to non-controlling interest | 416 | 925 | (65 | ) | 1,546 | |||||||||||||||
Schedule of misstatement impact on condensed consolidated statement of cash flows | ' | |||||||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||
Statement of Cash Flows | As previously | As restated | ||||||||||||||||||
reported | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 188,653 | $ | 187,042 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation | 132,199 | 127,472 | ||||||||||||||||||
Accretion of asset retirement obligations | 540 | 536 | ||||||||||||||||||
Equity in earnings from unconsolidated affiliate | (788 | ) | (2,254 | ) | ||||||||||||||||
Distributions from unconsolidated affiliate | 2,200 | 6,624 | ||||||||||||||||||
Receivables | 32,739 | 32,248 | ||||||||||||||||||
Other current assets | (12,707 | ) | (12,866 | ) | ||||||||||||||||
Accounts payable and accrued liabilities | 36,737 | 36,837 | ||||||||||||||||||
Net cash provided by operating activities | 389,718 | 385,784 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | (1,240,866 | ) | (1,239,705 | ) | ||||||||||||||||
Investment in unconsolidated affiliates | — | (839 | ) | |||||||||||||||||
Net cash flows used in investing activities | (1,746,071 | ) | (1,745,749 | ) | ||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Contributions from non-controlling interest | 56,940 | 56,101 | ||||||||||||||||||
Payment of distributions to non-controlling interest | (4,495 | ) | (71 | ) | ||||||||||||||||
Net cash flows provided by financing activities | 1,654,401 | 1,657,986 | ||||||||||||||||||
Net increase in cash and cash equivalents | 298,048 | 298,021 | ||||||||||||||||||
Cash and cash equivalents at beginning of year | 117,016 | 114,332 | ||||||||||||||||||
Cash and cash equivalents at end of period | 415,064 | 412,353 | ||||||||||||||||||
Schedule of misstatement impact on condensed consolidated statement of changes in equity | ' | |||||||||||||||||||
Common Units | Non-controlling Interest | Total Equity | ||||||||||||||||||
Statement of Changes in Equity | As | As restated | As | As | As | As restated | ||||||||||||||
previously | previously | restated | previously | |||||||||||||||||
reported | reported | reported | ||||||||||||||||||
December 31, 2011 | $ | 679,309 | $ | 642,522 | $ | 70,227 | $ | 189 | $ | 1,502,067 | $ | 1,395,242 | ||||||||
Distributions paid | (244,169 | ) | (244,169 | ) | (4,495 | ) | (71 | ) | (248,664 | ) | (244,240 | ) | ||||||||
Contributions from non-controlling interest | — | — | 56,940 | 56,101 | 56,940 | 56,101 | ||||||||||||||
Deferred income tax impact from changes in equity | (74,855 | ) | (75,248 | ) | — | — | (74,855 | ) | (75,248 | ) | ||||||||||
Net income (loss) | 188,588 | 188,588 | 65 | (1,546 | ) | 188,653 | 187,042 | |||||||||||||
September 30, 2012 | 1,745,672 | 1,708,492 | 122,737 | 54,673 | 2,620,940 | 2,515,696 | ||||||||||||||
Business_Combination_Tables
Business Combination (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Business Combination | ' | ||||
Summary of preliminary purchase price allocation | ' | ||||
The following table summarizes the preliminary purchase price allocation for the Buffalo Creek Acquisition (in thousands): | |||||
Assets: | |||||
Property, plant and equipment | $ | 144,115 | |||
Goodwill | 2,682 | ||||
Intangible asset | 84,500 | ||||
Liabilities: | |||||
Accounts payable | 6,087 | ||||
Total | $ | 225,210 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Schedule of notional amounts of derivative contracts | ' | |||||||||||||||||||
Derivative contracts not designated as hedging instruments | Financial | Notional Quantity | ||||||||||||||||||
Position | (net) | |||||||||||||||||||
Crude Oil (bbl) | Short | 1,409,056 | ||||||||||||||||||
Natural Gas (MMBtu) | Long | 4,171,700 | ||||||||||||||||||
NGLs (gal) | Short | 140,771,757 | ||||||||||||||||||
Schedule reconciling liability recorded for an embedded derivative | ' | |||||||||||||||||||
See the following table for a reconciliation of the liability recorded for the embedded derivative as of September 30, 2013 (in thousands): | ||||||||||||||||||||
Fair value of commodity contract | $ | 81,957 | ||||||||||||||||||
Inception value for period from April 1, 2015 to December 31, 2022 | (53,507 | ) | ||||||||||||||||||
Derivative liability as of September 30, 2013 | $ | 28,450 | ||||||||||||||||||
Schedule of derivative instruments not designated as hedging instruments and their location in the financial statements | ' | |||||||||||||||||||
The impact of the Partnership’s derivative instruments on its Condensed Consolidated Balance Sheets is summarized below (in thousands): | ||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
Derivative instruments not designated as hedging | September 30, | December 31, | September 30, | December 31, | ||||||||||||||||
instruments and their balance sheet location | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Commodity contracts(1) | ||||||||||||||||||||
Fair value of derivative instruments — current | $ | 15,710 | $ | 19,504 | $ | (29,479 | ) | $ | (27,229 | ) | ||||||||||
Fair value of derivative instruments - long-term | 4,555 | 10,878 | (21,044 | ) | (32,190 | ) | ||||||||||||||
Total | $ | 20,265 | $ | 30,382 | $ | (50,523 | ) | $ | (59,419 | ) | ||||||||||
(1) Includes Embedded Derivatives in Commodity Contracts as discussed above. | ||||||||||||||||||||
The impact of the Partnership’s derivative instruments on its Condensed Consolidated Statements of Operations is summarized below (in thousands): | ||||||||||||||||||||
Derivative contracts not designated as | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||
hedging instruments and the location of | ||||||||||||||||||||
gain or (loss) recognized in income | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Revenue: Derivative (loss) gain | ||||||||||||||||||||
Realized (loss) gain | $ | (3,631 | ) | $ | (2,025 | ) | $ | 3,356 | $ | (9,662 | ) | |||||||||
Unrealized (loss) gain | (26,687 | ) | (34,375 | ) | (14,160 | ) | 60,614 | |||||||||||||
Total revenue: derivative (loss) gain | (30,318 | ) | (36,400 | ) | (10,804 | ) | 50,952 | |||||||||||||
Derivative (loss) gain related to purchased product costs | ||||||||||||||||||||
Realized loss | (1,711 | ) | (6,334 | ) | (4,836 | ) | (21,201 | ) | ||||||||||||
Unrealized (loss) gain | (18,523 | ) | (5,309 | ) | 15,738 | 42,337 | ||||||||||||||
Total derivative (loss) gain related to purchase product costs | (20,234 | ) | (11,643 | ) | 10,902 | 21,136 | ||||||||||||||
Derivative loss related to facility expenses | ||||||||||||||||||||
Unrealized loss | (2,332 | ) | (4,028 | ) | (2,800 | ) | (1,136 | ) | ||||||||||||
Total (loss) gain | $ | (52,884 | ) | $ | (52,071 | ) | $ | (2,702 | ) | $ | 70,952 | |||||||||
Schedule of impact on the balance sheet if Partnership had elected to net derivative positions subject to master netting arrangements | ' | |||||||||||||||||||
The table below summarizes the impact if the Partnership had elected to net its derivative positions that are subject to master netting arrangements (in thousands): | ||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
As of September 30, 2013 | Gross | Gross | Net Amount | Gross | Gross | Net | ||||||||||||||
Amounts of | Amounts | Amounts of | Amounts | Amount | ||||||||||||||||
Assets in the | Not Offset in | Liabilities in | Not Offset in | |||||||||||||||||
Consolidated | the | the | the | |||||||||||||||||
Balance | Consolidated | Consolidated | Consolidated | |||||||||||||||||
Sheet | Balance | Balance | Balance | |||||||||||||||||
Sheet | Sheet | Sheet | ||||||||||||||||||
Current | ||||||||||||||||||||
Commodity contracts | $ | 12,630 | $ | (10,365 | ) | $ | 2,265 | $ | (19,372 | ) | $ | 10,365 | $ | (9,007 | ) | |||||
Embedded derivatives in commodity contracts | 3,080 | — | 3,080 | (10,107 | ) | — | (10,107 | ) | ||||||||||||
Total current derivative instruments | 15,710 | (10,365 | ) | 5,345 | (29,479 | ) | 10,365 | (19,114 | ) | |||||||||||
Non-current | ||||||||||||||||||||
Commodity contracts | 4,289 | (1,792 | ) | 2,497 | (2,701 | ) | 1,792 | (909 | ) | |||||||||||
Embedded derivatives in commodity contracts | 266 | — | 266 | (18,343 | ) | — | (18,343 | ) | ||||||||||||
Total non-current derivative instruments | 4,555 | (1,792 | ) | 2,763 | (21,044 | ) | 1,792 | (19,252 | ) | |||||||||||
Total derivative instruments | $ | 20,265 | $ | (12,157 | ) | $ | 8,108 | $ | (50,523 | ) | $ | 12,157 | $ | (38,366 | ) | |||||
Assets | Liabilities | |||||||||||||||||||
As of December 31, 2012 | Gross | Gross | Net Amount | Gross | Gross | Net | ||||||||||||||
Amounts of | Amounts | Amounts of | Amounts | Amount | ||||||||||||||||
Assets in the | Not Offset in | Liabilities in | Not Offset in | |||||||||||||||||
Consolidated | the | the | the | |||||||||||||||||
Balance | Consolidated | Consolidated | Consolidated | |||||||||||||||||
Sheet | Balance | Balance | Balance | |||||||||||||||||
Sheet | Sheet | Sheet | ||||||||||||||||||
Current | ||||||||||||||||||||
Commodity contracts | $ | 16,438 | $ | (9,541 | ) | $ | 6,897 | $ | (16,679 | ) | $ | 9,541 | $ | (7,138 | ) | |||||
Embedded derivatives in commodity contracts | 3,066 | — | 3,066 | (10,550 | ) | — | (10,550 | ) | ||||||||||||
Total current derivative instruments | 19,504 | (9,541 | ) | 9,963 | (27,229 | ) | 9,541 | (17,688 | ) | |||||||||||
Non-current | ||||||||||||||||||||
Commodity contracts | 7,798 | (2,637 | ) | 5,161 | (2,637 | ) | 2,637 | — | ||||||||||||
Embedded derivatives in commodity contracts | 3,080 | — | 3,080 | (29,553 | ) | — | (29,553 | ) | ||||||||||||
Total non-current derivative instruments | 10,878 | (2,637 | ) | 8,241 | (32,190 | ) | 2,637 | (29,553 | ) | |||||||||||
Total derivative instruments | $ | 30,382 | $ | (12,178 | ) | $ | 18,204 | $ | (59,419 | ) | $ | 12,178 | $ | (47,241 | ) |
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Fair Value | ' | |||||||||
Schedule of derivative instruments carried at fair value | ' | |||||||||
The following table presents the derivative instruments carried at fair value as of September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||
As of September 30, 2013 | Assets | Liabilities | ||||||||
Significant other observable inputs (Level 2) | ||||||||||
Commodity contracts | $ | 3,518 | $ | (11,615 | ) | |||||
Significant unobservable inputs (Level 3) | ||||||||||
Commodity contracts | 13,401 | (10,458 | ) | |||||||
Embedded derivatives in commodity contracts | 3,346 | (28,450 | ) | |||||||
Total carrying value in Condensed Consolidated Balance Sheet | $ | 20,265 | $ | (50,523 | ) | |||||
As of December 31, 2012 | Assets | Liabilities | ||||||||
Significant other observable inputs (Level 2) | ||||||||||
Commodity contracts | $ | 8,441 | $ | (15,970 | ) | |||||
Significant unobservable inputs (Level 3) | ||||||||||
Commodity contracts | 15,795 | (3,346 | ) | |||||||
Embedded derivatives in commodity contracts | 6,146 | (40,103 | ) | |||||||
Total carrying value in Condensed Consolidated Balance Sheet | $ | 30,382 | $ | (59,419 | ) | |||||
Schedule of information about significant unobservable inputs used in the valuation of Level 3 instruments | ' | |||||||||
Level 3 Instrument | Balance | Unobservable Inputs | Value Range | Time Period | ||||||
Sheet | ||||||||||
Classification | ||||||||||
Commodity contracts | Assets | Forward propane prices (per gallon) (1) | $0.97 - $1.07 | Oct. 2013 – Dec. 2014 | ||||||
Forward isobutane prices (per gallon) (1) | $1.28 - $1.41 | Oct. 2013 – Dec. 2014 | ||||||||
Forward normal butane prices (per gallon) (1) | $1.21 - $1.38 | Oct. 2013 – Dec. 2014 | ||||||||
Forward natural gasoline prices (per gallon) (1) | $1.93 - $2.07 | Oct. 2013 – Dec. 2014 | ||||||||
Crude option volatilities (%) | 16.37% - 22.15% | Dec. 2013 – Dec. 2014 | ||||||||
Liabilities | Forward propane prices (per gallon) (1) | $0.97 - $1.07 | Oct. 2013 – Dec. 2014 | |||||||
Forward isobutane prices (per gallon) (1) | $1.28 - $1.40 | Jan. 2014 – Dec. 2014 | ||||||||
Forward normal butane prices (per gallon) (1) | $1.21 - $1.37 | Jan. 2014 – Dec. 2014 | ||||||||
Forward natural gasoline prices (per gallon) (1) | $2.03 - $2.07 | Oct. 2013 – Mar. 2014 | ||||||||
Propane option volatilities (%) | 14.01% - 26.14% | Oct. 2013 – Dec. 2013 | ||||||||
Crude option volatilities (%) | 11.61% - 26.45% | Oct. 2013 – Jul. 2014 | ||||||||
Embedded derivatives in commodity contracts | Asset | ERCOT Pricing (per MegaWatt Hour) (2) | $29.19 - $58.68 | Oct. 2013 – Dec. 2014 | ||||||
Liability | Forward propane prices (per gallon) (1) | $0.89 - $1.07 | Oct. 2013 – Dec. 2022 | |||||||
Forward isobutane prices (per gallon) (1) | $1.26 - $1.41 | Oct. 2013 – Dec. 2022 | ||||||||
Forward normal butane prices (per gallon) (1) | $1.14 - $1.38 | Oct. 2013 – Dec. 2022 | ||||||||
Forward natural gasoline prices (per gallon) (1) | $1.73 - $2.07 | Oct. 2013 – Dec. 2022 | ||||||||
Forward natural gas prices (per MMBtu) (3) | $3.50 - $5.50 | Oct. 2013 – Dec. 2022 | ||||||||
Probability of renewal(4) | 0% | |||||||||
(1) NGL prices decrease over the respective periods with increases in the winter months due to seasonality. | ||||||||||
(2) The forward ERCOT prices utilized in the valuations are generally flat at the low end of the range with a seasonal spike in pricing in the summer months. | ||||||||||
(3) Natural gas prices used in the valuations are generally at the lower end of the range in the early years and increase over time. | ||||||||||
(4) The producer counterparty to the embedded derivative has the option to renew the gas purchase agreement and the related keep-whole processing agreement for two successive five year terms after 2022. The embedded gas purchase agreement cannot be renewed without the renewal of the related keep-whole processing agreement. Due to the significant number of years until the renewal options are exercisable and the high level of uncertainty regarding the counterparty’s future business strategy, the future commodity price environment, and the future competitive environment for midstream services in the Appalachia area, management determined that a 0% probability of renewal is an appropriate assumption. | ||||||||||
Schedule of changes in Level 3 fair value measurements | ' | |||||||||
The table below includes a roll forward of the balance sheet amounts for the three months ended September 30, 2013 and 2012 for net assets and liabilities classified by the Partnership within Level 3 of the valuation hierarchy (in thousands): | ||||||||||
Three months ended September 30, 2013 | ||||||||||
Commodity Derivative | Embedded Derivatives | |||||||||
Contracts (net) | in Commodity | |||||||||
Contracts (net) | ||||||||||
Fair value at beginning of period | $ | 26,378 | $ | (2,403 | ) | |||||
Total loss (realized and unrealized) included in earnings (1) | (24,269 | ) | (24,786 | ) | ||||||
Settlements | 834 | 2,085 | ||||||||
Fair value at end of period | $ | 2,943 | $ | (25,104 | ) | |||||
The amount of total losses for the period included in earnings attributable to the change in unrealized gains or losses relating to contracts still held at end of period (1) | $ | (20,250 | ) | $ | (22,742 | ) | ||||
Three months ended September 30, 2012 | ||||||||||
Commodity Derivative | Embedded Derivatives | |||||||||
Contracts (net) | in Commodity | |||||||||
Contracts (net) | ||||||||||
Fair value at beginning of period | $ | 29,556 | $ | (10,395 | ) | |||||
Total loss (realized and unrealized) included in earnings (1) | (13,199 | ) | (19,842 | ) | ||||||
Settlements | 415 | 2,262 | ||||||||
Fair value at end of period | $ | 16,772 | $ | (27,975 | ) | |||||
The amount of total losses for the period included in earnings attributable to the change in unrealized gains or losses relating to contracts still held at end of period (1) | $ | (11,754 | ) | $ | (15,643 | ) | ||||
Nine months ended September 30, 2013 | ||||||||||
Commodity Derivative | Embedded Derivatives | |||||||||
Contracts (net) | in Commodity | |||||||||
Contracts (net) | ||||||||||
Fair value at beginning of period | $ | 12,449 | $ | (33,957 | ) | |||||
Total (loss) gain (realized and unrealized) included in earnings (1) | (4,050 | ) | 2,206 | |||||||
Settlements | (5,456 | ) | 6,647 | |||||||
Fair value at end of period | $ | 2,943 | $ | (25,104 | ) | |||||
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to contracts still held at end of period (1) | $ | (5,656 | ) | $ | 3,883 | |||||
Nine months ended September 30, 2012 | ||||||||||
Commodity Derivative | Embedded Derivatives in | |||||||||
Contracts (net) | Commodity Contracts | |||||||||
(net) | ||||||||||
Fair value at beginning of period | $ | (2,965 | ) | $ | (53,904 | ) | ||||
Total gain (realized and unrealized) included in earnings (1) | 21,016 | 17,829 | ||||||||
Settlements | (1,279 | ) | 8,100 | |||||||
Fair value at end of period | $ | 16,772 | $ | (27,975 | ) | |||||
The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to contracts still held at end of period (1) | $ | 14,843 | $ | 17,728 | ||||||
(1) Gains and losses on Commodity Derivative Contracts classified as Level 3 are recorded in Revenue: Derivative gain. Gains and losses on Embedded Derivatives in Commodity Contracts are recorded in Purchased product costs, Derivative gain related to purchased product costs, Facility expenses, and Derivative loss (gain) related to facility expenses. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventories | ' | |||||||
Schedule of components of inventory | ' | |||||||
Inventories consist of the following (in thousands): | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
NGLs | $ | 24,739 | $ | 14,763 | ||||
Spare parts, materials and supplies | 10,775 | 9,870 | ||||||
Total inventories | $ | 35,514 | $ | 24,633 |
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Goodwill | ' | |||||||||||||
Schedule of changes in goodwill | ' | |||||||||||||
Changes in goodwill for the nine months ended September 30, 2013 are summarized as follows (in thousands): | ||||||||||||||
Marcellus | Northeast | Southwest | Total | |||||||||||
Gross goodwill as of December 31, 2012 | $ | 74,256 | $ | 62,445 | $ | 34,178 | $ | 170,879 | ||||||
Acquisition (1) | — | — | 2,682 | 2,682 | ||||||||||
Gross goodwill as of September 30, 2013 | 74,256 | 62,445 | 36,860 | 173,561 | ||||||||||
Cumulative impairment (2) | — | — | (28,705 | ) | (28,705 | ) | ||||||||
Balance as of September 30, 2013 | $ | 74,256 | $ | 62,445 | $ | 8,155 | $ | 144,856 | ||||||
(1) Represents goodwill associated with the Buffalo Creek Acquisition (see Note 4). | ||||||||||||||
(2) All impairments recorded in the fourth quarter of 2008. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Long-Term Debt | ' | |||||||
Schedule of long-term debt | ' | |||||||
Debt is summarized below (in thousands): | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Credit Facility | ||||||||
Credit Facility, variable interest, due September 2017 (1) | $ | — | $ | — | ||||
Senior Notes (2) | ||||||||
2018 Senior Notes, 8.75% interest, net of discount of zero and $109, respectively, issued April and May 2008 | — | 81,003 | ||||||
2020 Senior Notes, 6.75% interest, issued November 2010 and due November 2020 | 500,000 | 500,000 | ||||||
2021 Senior Notes, 6.5% interest, net of discount of $490 and $826, respectively, issued February and March 2011 and due August 2021 | 324,510 | 499,174 | ||||||
2022 Senior Notes, 6.25% interest, issued October 2011 and due June 2022 | 455,000 | 700,000 | ||||||
2023A Senior Notes, 5.5% interest, net of discount of $6,623 and $7,126, respectively, issued August 2012 and due February 2023 | 743,377 | 742,874 | ||||||
2023B Senior Notes, 4.5% interest, issued January 2013 and due July 2023 | 1,000,000 | — | ||||||
Total long-term debt | $ | 3,022,887 | $ | 2,523,051 | ||||
(1) Applicable interest rate was 5.00% at September 30, 2013. | ||||||||
(2) The estimated aggregate fair value of the senior notes (collectively, the “Senior Notes”) was approximately $3,065 million and $2,763 million as of September 30, 2013 and December 31, 2012, respectively, based on quoted prices in an inactive market. The fair value of the Partnership’s Senior Notes is considered a Level 3 measurement. |
Equity_Tables
Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity | ' | ||||||||||||||||
Schedule of distributions | ' | ||||||||||||||||
Common Unit Price | Distribution | ||||||||||||||||
Per | |||||||||||||||||
Common | |||||||||||||||||
Quarter Ended | High | Low | Unit | Declaration Date | Record Date | Payment Date | |||||||||||
September 30, 2013 | $ | 72.35 | $ | 65.27 | $ | 0.85 | October 23, 2013 | November 7, 2013 | November 14, 2013 | ||||||||
June 30, 2013 | $ | 71.2 | $ | 56.9 | $ | 0.84 | July 24, 2013 | August 6, 2013 | August 14, 2013 | ||||||||
March 31, 2013 | $ | 61.97 | $ | 51.77 | $ | 0.83 | April 25, 2013 | May 7, 2013 | May 15, 2013 | ||||||||
December 31, 2012 | $ | 55.95 | $ | 46.03 | $ | 0.82 | January 23, 2013 | February 6, 2013 | February 14, 2013 |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Income Taxes | ' | |||||||||||||
Schedule of income tax rate reconciliation | ' | |||||||||||||
A reconciliation of the provision for income tax and the amount computed by applying the federal statutory rate to income before provision for income tax for the nine months ended September 30, 2013 and 2012 is as follows (in thousands): | ||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
Corporation | Partnership | Eliminations | Consolidated | |||||||||||
Income before provision for income tax | $ | 25,480 | $ | 40,223 | $ | (8,779 | ) | $ | 56,924 | |||||
Federal statutory rate | 35 | % | 0 | % | 0 | % | ||||||||
Federal income tax at statutory rate | 8,918 | — | — | 8,918 | ||||||||||
Permanent items | 25 | — | — | 25 | ||||||||||
State income taxes net of federal benefit | 511 | 154 | — | 665 | ||||||||||
Provision on income from Class A units (1) | 2,976 | — | — | 2,976 | ||||||||||
Provision for income tax | $ | 12,430 | $ | 154 | $ | — | $ | 12,584 | ||||||
Nine months ended September 30, 2012 | ||||||||||||||
Corporation | Partnership | Eliminations | Consolidated | |||||||||||
Income before provision for income tax | $ | 74,679 | $ | 151,752 | $ | 2,209 | $ | 228,640 | ||||||
Federal statutory rate | 35 | % | 0 | % | 0 | % | ||||||||
Federal income tax at statutory rate | 26,138 | — | — | 26,138 | ||||||||||
Permanent items | 21 | — | — | 21 | ||||||||||
State income taxes net of federal benefit | 3,418 | 734 | — | 4,152 | ||||||||||
Provision on income from Class A units (1) | 11,287 | — | — | 11,287 | ||||||||||
Provision for income tax | $ | 40,864 | $ | 734 | $ | — | $ | 41,598 | ||||||
(1) The Corporation and the General Partner of the Partnership own Class A units of the Partnership that were received in the merger of the Corporation and the Partnership completed in February 2008. The Class A units share, on a pro-rata basis, in the income or loss of the Partnership, except for items attributable to the Partnership’s ownership of or sale of shares of the Corporation’s common stock. The provision for income tax on income from Class A units includes intra period allocations to continued operations and excludes allocations to equity. |
Earnings_Per_Common_Unit_Table
Earnings Per Common Unit (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Common Unit | ' | |||||||||||||
Schedule of earnings per common unit | ' | |||||||||||||
The following table shows the computation of basic and diluted net income per common unit for the three and nine months ended September 30, 2013 and 2012, and the weighted-average units used to compute basic and diluted net income per common unit (in thousands, except per unit data): | ||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net (loss) income attributable to the Partnership’s unitholders | $ | (23,604 | ) | $ | (14,340 | ) | $ | 44,637 | $ | 188,588 | ||||
Less: Income allocable to phantom units | 618 | 541 | 1,718 | 1,595 | ||||||||||
(Loss) income available for common unitholders - basic | (24,222 | ) | (14,881 | ) | 42,919 | 186,993 | ||||||||
Add: Income allocable to phantom units and DER expense | — | — | 1,774 | 1,627 | ||||||||||
(Loss) income available for common unitholders - diluted | $ | (24,222 | ) | $ | (14,881 | ) | $ | 44,693 | $ | 188,620 | ||||
Weighted average common units outstanding - basic | 142,352 | 113,994 | 134,115 | 105,916 | ||||||||||
Potential common shares (Class B and phantom units) (1) | — | — | 19,340 | 20,679 | ||||||||||
Weighted average common units outstanding - diluted | 142,352 | 113,994 | 153,455 | 126,595 | ||||||||||
Net (loss) income attributable to the Partnership’s common unitholders per common unit (2) | ||||||||||||||
Basic | $ | (0.17 | ) | $ | (0.13 | ) | $ | 0.32 | $ | 1.77 | ||||
Diluted | $ | (0.17 | ) | $ | (0.13 | ) | $ | 0.29 | $ | 1.49 | ||||
(1) For the three month periods ending September 30, 2013 and September 30, 2012, 16,760 and 20,641 units were excluded, respectively, from the calculation of diluted units because the impact was anti-dilutive. | ||||||||||||||
(2) Earnings per Class B units equals zero as Class B unitholders are not entitled to receive distributions and therefore no income is allocable to Class B units under the two class method. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
Schedule of operating income and capital expenditures of reportable segments | ' | ||||||||||||||||
The tables below present the Partnership’s segment profit measure, Operating income before items not allocated to segments, for the three and nine months ended September 30, 2013 and 2012 and capital expenditures for the nine months ended September 30, 2013 and 2012 for the reported segments (in thousands): | |||||||||||||||||
Three months ended September 30, 2013: | |||||||||||||||||
Marcellus | Utica | Northeast | Southwest | Total | |||||||||||||
Segment revenue | $ | 147,290 | $ | 8,373 | $ | 48,829 | $ | 247,885 | $ | 452,377 | |||||||
Purchased product costs | 36,995 | — | 15,330 | 139,347 | 191,672 | ||||||||||||
Net operating margin | 110,295 | 8,373 | 33,499 | 108,538 | 260,705 | ||||||||||||
Facility expenses | 29,621 | 9,858 | 7,359 | 32,559 | 79,397 | ||||||||||||
Portion of operating loss attributable to non-controlling interests | — | (599 | ) | — | 40 | (559 | ) | ||||||||||
Operating income (loss) before items not allocated to segments | $ | 80,674 | $ | (886 | ) | $ | 26,140 | $ | 75,939 | $ | 181,867 | ||||||
Three months ended September 30, 2012: | |||||||||||||||||
Marcellus | Utica | Northeast | Southwest (1) | Total | |||||||||||||
Segment revenue | $ | 78,707 | $ | 145 | $ | 39,987 | $ | 199,394 | $ | 318,233 | |||||||
Purchased product costs | 16,203 | — | 11,054 | 92,112 | 119,369 | ||||||||||||
Net operating margin | 62,504 | 145 | 28,933 | 107,282 | 198,864 | ||||||||||||
Facility expenses | 18,933 | 1,308 | 6,267 | 28,870 | 55,378 | ||||||||||||
Portion of operating (loss) income attributable to non-controlling interests | — | (627 | ) | — | 67 | (560 | ) | ||||||||||
Operating income (loss) before items not allocated to segments | $ | 43,571 | $ | (536 | ) | $ | 22,666 | $ | 78,345 | $ | 144,046 | ||||||
(1) Amounts have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. | |||||||||||||||||
Reconciliation of segment revenue to total revenue and operating income before items not allocated to segments to income before provision for income tax | ' | ||||||||||||||||
The following is a reconciliation of segment revenue to total revenue and operating income before items not allocated to segments to income before provision for income tax for the three months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||
Three months ended September 30, | |||||||||||||||||
2013 | 2012 (3) | ||||||||||||||||
Total segment revenue | $ | 452,377 | $ | 318,233 | |||||||||||||
Derivative loss not allocated to segments | (30,318 | ) | (36,400 | ) | |||||||||||||
Revenue deferral adjustment and other (1) | (1,543 | ) | (1,257 | ) | |||||||||||||
Total revenue | $ | 420,516 | $ | 280,576 | |||||||||||||
Operating income before items not allocated to segments | $ | 181,867 | $ | 144,046 | |||||||||||||
Portion of operating loss attributable to non-controlling interests | (559 | ) | (560 | ) | |||||||||||||
Derivative loss not allocated to segments | (52,884 | ) | (52,071 | ) | |||||||||||||
Revenue deferral adjustment and other (1) | (1,543 | ) | (1,257 | ) | |||||||||||||
Compensation expense included in facility expenses not allocated to segments | (833 | ) | (193 | ) | |||||||||||||
Facility expenses adjustments (2) | 2,688 | 2,688 | |||||||||||||||
Selling, general and administrative expenses | (26,647 | ) | (21,723 | ) | |||||||||||||
Depreciation | (76,323 | ) | (46,554 | ) | |||||||||||||
Amortization of intangible assets | (16,003 | ) | (14,988 | ) | |||||||||||||
Loss on disposal of property, plant and equipment | (1,840 | ) | (655 | ) | |||||||||||||
Accretion of asset retirement obligations | (160 | ) | (140 | ) | |||||||||||||
Income from operations | 7,763 | 8,593 | |||||||||||||||
Earnings from unconsolidated affiliates | 896 | 706 | |||||||||||||||
Interest income | 27 | 64 | |||||||||||||||
Interest expense | (38,889 | ) | (30,621 | ) | |||||||||||||
Amortization of deferred financing costs and discount (a component of interest expense) | (1,584 | ) | (1,428 | ) | |||||||||||||
Miscellaneous income, net | 1,504 | 1 | |||||||||||||||
Loss before provision for income tax | $ | (30,283 | ) | $ | (22,685 | ) | |||||||||||
(1) Amount relates primarily to certain contracts in which the cash consideration that the Partnership receives for providing service is greater during the initial years of the contract compared to the later years. In accordance with GAAP, the revenue is recognized evenly over the term of the contract as the Partnership will perform a similar level of service for the entire term. Therefore, the revenue recognized in the current reporting period is less than the cash received. However, the Partnership’s chief operating decision maker and management evaluate the segment performance based on the cash consideration received and therefore, the impact of the revenue deferrals is excluded for segment reporting purposes. For the three months ended September 30, 2013, approximately $0.2 million and $1.5 million of the revenue deferral adjustment is attributable to the Southwest segment and Northeast segment, respectively. In comparison, for the three months ended September 30, 2012, approximately $0.2 million and $1.4 million of the revenue deferral adjustment was attributable to the Southwest segment and Northeast segment, respectively. Beginning in 2015, the cash consideration received from these contracts will decline and the reported segment revenue will be less than the revenue recognized for GAAP purposes. Other consists of management fee revenues from an unconsolidated affiliate of $0.2 million for the three months ended September 30, 2013 compared to $0.3 million for three months ended September 30, 2012. | |||||||||||||||||
(2) Facility expenses adjustments consist of the reallocation of the interest expense related to the SMR, which is included in facility expenses for the purposes of evaluating the performance of the Southwest segment. | |||||||||||||||||
(3) Amounts have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. | |||||||||||||||||
Nine months ended September 30, 2013: | |||||||||||||||||
Marcellus | Utica | Northeast | Southwest | Total | |||||||||||||
Segment revenue | $ | 375,844 | $ | 12,590 | $ | 151,530 | $ | 684,093 | $ | 1,224,057 | |||||||
Purchased product costs | 72,781 | — | 50,118 | 376,689 | 499,588 | ||||||||||||
Net operating margin | 303,063 | 12,590 | 101,412 | 307,404 | 724,469 | ||||||||||||
Facility expenses | 74,529 | 20,232 | 20,538 | 91,027 | 206,326 | ||||||||||||
Portion of operating (loss) income attributable to non-controlling interests | — | (3,081 | ) | — | 157 | (2,924 | ) | ||||||||||
Operating income (loss) before items not allocated to segments | $ | 228,534 | $ | (4,561 | ) | $ | 80,874 | $ | 216,220 | $ | 521,067 | ||||||
Capital expenditures | $ | 1,097,440 | $ | 961,538 | $ | 3,418 | $ | 108,440 | $ | 2,170,836 | |||||||
Capital expenditures not allocated to segments | 5,883 | ||||||||||||||||
Total capital expenditures | $ | 2,176,719 | |||||||||||||||
Nine months ended September 30, 2012: | |||||||||||||||||
Marcellus | Utica | Northeast | Southwest (1) | Total | |||||||||||||
Segment revenue | $ | 213,761 | $ | 145 | $ | 168,956 | $ | 641,321 | $ | 1,024,183 | |||||||
Purchased product costs | 48,856 | — | 49,662 | 288,137 | 386,655 | ||||||||||||
Net operating margin | 164,905 | 145 | 119,294 | 353,184 | 637,528 | ||||||||||||
Facility expenses | 44,544 | 1,591 | 17,577 | 92,964 | 156,676 | ||||||||||||
Portion of operating (loss) income attributable to non-controlling interests | — | (740 | ) | — | 98 | (642 | ) | ||||||||||
Operating income (loss) before items not allocated to segments | $ | 120,361 | $ | (706 | ) | $ | 101,717 | $ | 260,122 | $ | 481,494 | ||||||
Capital expenditures | $ | 937,008 | $ | 82,366 | $ | 70,206 | $ | 145,213 | $ | 1,234,793 | |||||||
Capital expenditures not allocated to segments | 4,912 | ||||||||||||||||
Total capital expenditures | $ | 1,239,705 | |||||||||||||||
(1) Amounts have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. | |||||||||||||||||
The following is a reconciliation of segment revenue to total revenue and operating income before items not allocated to segments to income before provision for income tax for the nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2013 | 2012 (3) | ||||||||||||||||
Total segment revenue | $ | 1,224,057 | $ | 1,024,183 | |||||||||||||
Derivative gain not allocated to segments | (10,804 | ) | 50,952 | ||||||||||||||
Revenue deferral adjustment and other (1) | (4,344 | ) | (4,474 | ) | |||||||||||||
Total revenue | $ | 1,208,909 | $ | 1,070,661 | |||||||||||||
Operating income before items not allocated to segments | $ | 521,067 | $ | 481,494 | |||||||||||||
Portion of loss income attributable to non-controlling interests | (2,924 | ) | (642 | ) | |||||||||||||
Derivative (loss) gain not allocated to segments | (2,702 | ) | 70,952 | ||||||||||||||
Revenue deferral adjustment and other(1) | (4,344 | ) | (4,474 | ) | |||||||||||||
Compensation expense included in facility expenses not allocated to segments | (1,587 | ) | (826 | ) | |||||||||||||
Facility expenses adjustments (2) | 8,064 | 8,064 | |||||||||||||||
Selling, general and administrative expenses | (77,388 | ) | (68,471 | ) | |||||||||||||
Depreciation | (215,902 | ) | (127,472 | ) | |||||||||||||
Amortization of intangible assets | (47,925 | ) | (38,280 | ) | |||||||||||||
Gain (loss) on disposal of property, plant and equipment | 35,758 | (2,983 | ) | ||||||||||||||
Accretion of asset retirement obligations | (669 | ) | (536 | ) | |||||||||||||
Income from operations | 211,448 | 316,826 | |||||||||||||||
Earnings from unconsolidated affiliates | 1,561 | 2,254 | |||||||||||||||
Interest income | 238 | 295 | |||||||||||||||
Interest expense | (114,180 | ) | (86,855 | ) | |||||||||||||
Amortization of deferred financing costs and discount (a component of interest expense) | (5,198 | ) | (3,943 | ) | |||||||||||||
Loss on redemption of debt | (38,455 | ) | — | ||||||||||||||
Miscellaneous income, net | 1,510 | 63 | |||||||||||||||
Income before provision for income tax | $ | 56,924 | $ | 228,640 | |||||||||||||
(1) Amount relates primarily to certain contracts in which the cash consideration that the Partnership receives for providing service is greater during the initial years of the contract compared to the later years. In accordance with GAAP, the revenue is recognized evenly over the term of the contract as the Partnership will perform a similar level of service for the entire term. Therefore, the revenue recognized in the current reporting period is less than the cash received. However, the Partnership’s chief operating decision maker and management evaluate the segment performance based on the cash consideration received and, therefore, the impact of the revenue deferrals is excluded for segment reporting purposes. For the nine months ended September 30, 2013, approximately $0.6 million and $4.5 million of the revenue deferral adjustment is attributable to the Southwest segment and Northeast segment, respectively. In comparison, for the nine months ended September 30, 2012, approximately $0.6 million and $5.0 million of the revenue deferral adjustment was attributable to the Southwest segment and Northeast segment, respectively. Beginning in 2015, the cash consideration received from these contracts will decline and the reported segment revenue will be less than the revenue recognized for GAAP purposes. The other consists of management fee revenues from an unconsolidated affiliate of $0.8 million for the nine months ended September 30, 2013 compared to $1.1 million for the nine months ended September 30, 2012. | |||||||||||||||||
(2) Facility expenses adjustments consist of the reallocation of the interest expense related to the SMR, which is included in facility expenses for the purposes of evaluating the performance of the Southwest segment. | |||||||||||||||||
(3) Amounts have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. | |||||||||||||||||
Schedule of assets by segment | ' | ||||||||||||||||
The table below presents information about segment assets as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||
September 30, 2013 | December 31, 2012 (2) | ||||||||||||||||
Marcellus | $ | 4,143,180 | $ | 3,172,144 | |||||||||||||
Utica | 1,379,200 | 439,987 | |||||||||||||||
Northeast | 580,788 | 578,122 | |||||||||||||||
Southwest | 2,371,539 | 2,086,215 | |||||||||||||||
Total segment assets | 8,474,707 | 6,276,468 | |||||||||||||||
Assets not allocated to segments: | |||||||||||||||||
Certain cash and cash equivalents | 250,133 | 261,473 | |||||||||||||||
Fair value of derivatives | 20,265 | 30,382 | |||||||||||||||
Investment in unconsolidated affiliate | 68,193 | 63,054 | |||||||||||||||
Other (1) | 104,418 | 96,985 | |||||||||||||||
Total assets | $ | 8,917,716 | $ | 6,728,362 | |||||||||||||
(1) Includes corporate fixed assets, deferred financing costs, income tax receivable, receivables and other corporate assets not allocated to segments. | |||||||||||||||||
(2) Amounts have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. |
Supplemental_Condensed_Consoli1
Supplemental Condensed Consolidating Financial Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Supplemental Condensed Consolidating Financial Information | ' | ||||||||||||||||
Schedule of condensed consolidating balance sheets | ' | ||||||||||||||||
Condensed consolidating financial information for MarkWest Energy Partners and its combined guarantor and combined non-guarantor subsidiaries as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012 is as follows (in thousands): | |||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 181,213 | $ | 119,886 | $ | 27,054 | $ | — | $ | 328,153 | |||||||
Restricted cash | — | — | 10,000 | — | 10,000 | ||||||||||||
Receivables and other current assets | 3,146 | 233,522 | 89,765 | — | 326,433 | ||||||||||||
Intercompany receivables | 440,839 | 6,659 | 49,494 | (496,992 | ) | — | |||||||||||
Fair value of derivative instruments | — | 14,872 | 838 | — | 15,710 | ||||||||||||
Total current assets | 625,198 | 374,939 | 177,151 | (496,992 | ) | 680,296 | |||||||||||
Total property, plant and equipment, net | 3,598 | 2,174,893 | 4,940,452 | (78,120 | ) | 7,040,823 | |||||||||||
Other long-term assets: | |||||||||||||||||
Restricted Cash | — | — | 10,000 | — | 10,000 | ||||||||||||
Investment in unconsolidated affiliate | — | 68,193 | — | — | 68,193 | ||||||||||||
Investment in consolidated affiliates | 5,716,977 | 3,766,735 | — | (9,483,712 | ) | — | |||||||||||
Intangibles, net of accumulated amortization | — | 608,748 | 282,764 | — | 891,512 | ||||||||||||
Fair value of derivative instruments | — | 4,214 | 341 | — | 4,555 | ||||||||||||
Intercompany notes receivable | 225,000 | — | — | (225,000 | ) | — | |||||||||||
Other long-term assets | 54,046 | 92,380 | 75,911 | — | 222,337 | ||||||||||||
Total assets | $ | 6,624,819 | $ | 7,090,102 | $ | 5,486,619 | $ | (10,283,824 | ) | $ | 8,917,716 | ||||||
LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Intercompany payables | $ | 1 | $ | 486,870 | $ | 10,121 | $ | (496,992 | ) | $ | — | ||||||
Fair value of derivative instruments | — | 27,460 | 2,019 | — | 29,479 | ||||||||||||
Other current liabilities | 47,522 | 214,180 | 655,079 | (2,068 | ) | 914,713 | |||||||||||
Total current liabilities | 47,523 | 728,510 | 667,219 | (499,060 | ) | 944,192 | |||||||||||
Deferred income taxes | 3,061 | 256,974 | — | — | 260,035 | ||||||||||||
Long-term intercompany financing payable | — | 225,000 | 98,018 | (323,018 | ) | — | |||||||||||
Fair value of derivative instruments | — | 20,996 | 48 | — | 21,044 | ||||||||||||
Long-term debt, net of discounts | 3,022,887 | — | — | — | 3,022,887 | ||||||||||||
Other long-term liabilities | 2,838 | 141,645 | 8,394 | — | 152,877 | ||||||||||||
Redeemable non-controlling interest | — | — | — | 366,238 | 366,238 | ||||||||||||
Equity: | |||||||||||||||||
Common units | 2,946,485 | 5,716,977 | 4,712,940 | (10,407,951 | ) | 2,968,451 | |||||||||||
Class B units | 602,025 | — | — | — | 602,025 | ||||||||||||
Non-controlling interest in consolidated subsidiaries | — | — | — | 579,967 | 579,967 | ||||||||||||
Total equity | 3,548,510 | 5,716,977 | 4,712,940 | (9,827,984 | ) | 4,150,443 | |||||||||||
Total liabilities and equity | $ | 6,624,819 | $ | 7,090,102 | $ | 5,486,619 | $ | (10,283,824 | ) | $ | 8,917,716 | ||||||
As of December 31, 2012 (1) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 210,015 | $ | 102,979 | $ | 32,762 | $ | — | $ | 345,756 | |||||||
Restricted cash | — | — | 25,500 | — | 25,500 | ||||||||||||
Receivables and other current assets | 9,191 | 178,913 | 74,658 | — | 262,762 | ||||||||||||
Intercompany receivables | 812,562 | 18,472 | 32,656 | (863,690 | ) | — | |||||||||||
Fair value of derivative instruments | — | 18,389 | 1,115 | — | 19,504 | ||||||||||||
Total current assets | 1,031,768 | 318,753 | 166,691 | (863,690 | ) | 653,522 | |||||||||||
Total property, plant and equipment, net | 3,542 | 1,999,474 | 3,032,121 | (95,519 | ) | 4,939,618 | |||||||||||
Other long-term assets: | |||||||||||||||||
Restricted cash | — | — | 10,000 | — | 10,000 | ||||||||||||
Investment in unconsolidated affiliate | — | 63,054 | — | — | 63,054 | ||||||||||||
Investment in consolidated affiliates | 4,104,473 | 2,719,920 | — | (6,824,393 | ) | — | |||||||||||
Intangibles, net of accumulated amortization | — | 559,320 | 295,835 | — | 855,155 | ||||||||||||
Fair value of derivative instruments | — | 10,878 | — | — | 10,878 | ||||||||||||
Intercompany notes receivable | 225,000 | — | — | (225,000 | ) | — | |||||||||||
Other long-term assets | 50,866 | 70,009 | 75,260 | — | 196,135 | ||||||||||||
Total assets | $ | 5,415,649 | $ | 5,741,408 | $ | 3,579,907 | $ | (8,008,602 | ) | $ | 6,728,362 | ||||||
LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Intercompany payables | $ | 461 | $ | 839,543 | $ | 23,686 | $ | (863,690 | ) | $ | — | ||||||
Fair value of derivative instruments | — | 27,062 | 167 | — | 27,229 | ||||||||||||
Other current liabilities | 42,301 | 197,934 | 472,462 | (1,892 | ) | 710,805 | |||||||||||
Total current liabilities | 42,762 | 1,064,539 | 496,315 | (865,582 | ) | 738,034 | |||||||||||
Deferred income taxes | 2,906 | 186,522 | — | — | 189,428 | ||||||||||||
Long-term intercompany financing payable | — | 225,000 | 99,592 | (324,592 | ) | — | |||||||||||
Fair value of derivative instruments | — | 32,190 | — | — | 32,190 | ||||||||||||
Long-term debt, net of discounts | 2,523,051 | — | — | — | 2,523,051 | ||||||||||||
Other long-term liabilities | 2,959 | 128,684 | 2,618 | — | 134,261 | ||||||||||||
Equity: | |||||||||||||||||
Common Units | 2,091,440 | 4,104,473 | 2,981,382 | (7,079,891 | ) | 2,097,404 | |||||||||||
Class B Units | 752,531 | — | — | — | 752,531 | ||||||||||||
Non-controlling interest in consolidated subsidiaries | — | — | — | 261,463 | 261,463 | ||||||||||||
Total equity | 2,843,971 | 4,104,473 | 2,981,382 | (6,818,428 | ) | 3,111,398 | |||||||||||
Total liabilities and equity | $ | 5,415,649 | $ | 5,741,408 | $ | 3,579,907 | $ | (8,008,602 | ) | $ | 6,728,362 | ||||||
(1) The condensed consolidating financial statements have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. The adjustments to the amounts previously reported were not material. | |||||||||||||||||
Schedule of condensed consolidating statements of operations | ' | ||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Total revenue | $ | — | $ | 277,120 | $ | 152,225 | $ | (8,829 | ) | $ | 420,516 | ||||||
Operating expenses: | |||||||||||||||||
Purchased product costs | — | 174,754 | 37,152 | — | 211,906 | ||||||||||||
Facility expenses | — | 39,781 | 40,598 | (505 | ) | 79,874 | |||||||||||
Selling, general and administrative expenses | 12,297 | 7,900 | 8,077 | (1,627 | ) | 26,647 | |||||||||||
Depreciation and amortization | 155 | 45,898 | 47,570 | (1,297 | ) | 92,326 | |||||||||||
Other operating expenses (income) | — | 1,970 | 30 | — | 2,000 | ||||||||||||
Total operating expenses | 12,452 | 270,303 | 133,427 | (3,429 | ) | 412,753 | |||||||||||
(Loss) income from operations | (12,452 | ) | 6,817 | 18,798 | (5,400 | ) | 7,763 | ||||||||||
Earnings from consolidated affiliates | 22,899 | 12,229 | — | (35,128 | ) | — | |||||||||||
Other expense, net | (38,339 | ) | (6,396 | ) | (2,992 | ) | 9,681 | (38,046 | ) | ||||||||
Income before provision for income tax | (27,892 | ) | 12,650 | 15,806 | (30,847 | ) | (30,283 | ) | |||||||||
Provision for income tax (benefit) expense | (7 | ) | (10,249 | ) | — | — | (10,256 | ) | |||||||||
Net income | (27,885 | ) | 22,899 | 15,806 | (30,847 | ) | (20,027 | ) | |||||||||
Net income attributable to non-controlling interest | — | — | — | (3,577 | ) | (3,577 | ) | ||||||||||
Net income attributable to the Partnership’s unitholders | $ | (27,885 | ) | $ | 22,899 | $ | 15,806 | $ | (34,424 | ) | $ | (23,604 | ) | ||||
Three months ended September 30, 2012 (1) | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Total revenue | $ | — | $ | 205,629 | $ | 78,047 | $ | (3,100 | ) | $ | 280,576 | ||||||
Operating expenses: | |||||||||||||||||
Purchased product costs | — | 114,685 | 16,327 | — | 131,012 | ||||||||||||
Facility expenses | — | 36,437 | 20,475 | (1 | ) | 56,911 | |||||||||||
Selling, general and administrative expenses | 10,241 | 5,633 | 6,943 | (1,094 | ) | 21,723 | |||||||||||
Depreciation and amortization | 146 | 41,593 | 21,381 | (1,578 | ) | 61,542 | |||||||||||
Other operating expenses | — | 488 | 307 | — | 795 | ||||||||||||
Total operating expenses | 10,387 | 198,836 | 65,433 | (2,673 | ) | 271,983 | |||||||||||
(Loss) income from operations | (10,387 | ) | 6,793 | 12,614 | (427 | ) | 8,593 | ||||||||||
Earnings from consolidated affiliates | 20,122 | 10,387 | — | (30,509 | ) | — | |||||||||||
Other (expense) income, net | (24,637 | ) | (4,447 | ) | (3,152 | ) | 958 | (31,278 | ) | ||||||||
(Loss) income before provision for income tax | (14,902 | ) | 12,733 | 9,462 | (29,978 | ) | (22,685 | ) | |||||||||
Provision for income tax expense | (31 | ) | (7,389 | ) | — | — | (7,420 | ) | |||||||||
Net (loss) income | (14,871 | ) | 20,122 | 9,462 | (29,978 | ) | (15,265 | ) | |||||||||
Net income attributable to non-controlling interest | — | — | — | 925 | 925 | ||||||||||||
Net (loss) income attributable to the Partnership’s unitholders | $ | (14,871 | ) | $ | 20,122 | $ | 9,462 | $ | (29,053 | ) | $ | (14,340 | ) | ||||
(1) The condensed consolidating financial statements have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. The adjustments to the amounts previously reported were not material. | |||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Total revenue | $ | — | $ | 846,185 | $ | 388,082 | $ | (25,358 | ) | $ | 1,208,909 | ||||||
Operating expenses: | |||||||||||||||||
Purchased product costs | — | 415,517 | 73,169 | — | 488,686 | ||||||||||||
Facility expenses | — | 106,556 | 96,985 | (892 | ) | 202,649 | |||||||||||
Selling, general and administrative expenses | 36,405 | 21,519 | 23,605 | (4,141 | ) | 77,388 | |||||||||||
Depreciation and amortization | 674 | 135,408 | 131,865 | (4,120 | ) | 263,827 | |||||||||||
Other operating expenses (income) | — | 3,308 | (40,477 | ) | 2,080 | (35,089 | ) | ||||||||||
Total operating expenses | 37,079 | 682,308 | 285,147 | (7,073 | ) | 997,461 | |||||||||||
(Loss) income from operations | (37,079 | ) | 163,877 | 102,935 | (18,285 | ) | 211,448 | ||||||||||
Earnings from consolidated affiliates | 225,773 | 93,958 | — | (319,731 | ) | — | |||||||||||
Loss on redemption of debt | (38,455 | ) | — | — | — | (38,455 | ) | ||||||||||
Other expense, net | (121,441 | ) | (19,632 | ) | (9,274 | ) | 34,278 | (116,069 | ) | ||||||||
Income before provision for income tax | 28,798 | 238,203 | 93,661 | (303,738 | ) | 56,924 | |||||||||||
Provision for income tax (benefit) expense | 154 | 12,430 | — | — | 12,584 | ||||||||||||
Net income | 28,644 | 225,773 | 93,661 | (303,738 | ) | 44,340 | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 297 | 297 | ||||||||||||
Net (loss) income attributable to the Partnership’s unitholders | $ | 28,644 | $ | 225,773 | $ | 93,661 | $ | (303,441 | ) | $ | 44,637 | ||||||
Nine months ended September 30, 2012 (1) | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Total revenue | $ | — | $ | 858,227 | $ | 217,257 | $ | (4,823 | ) | $ | 1,070,661 | ||||||
Operating expenses: | |||||||||||||||||
Purchased product costs | — | 316,327 | 49,192 | — | 365,519 | ||||||||||||
Facility expenses | — | 103,484 | 47,248 | (158 | ) | 150,574 | |||||||||||
Selling, general and administrative expenses | 37,197 | 13,333 | 20,697 | (2,756 | ) | 68,471 | |||||||||||
Depreciation and amortization | 458 | 121,520 | 46,719 | (2,945 | ) | 165,752 | |||||||||||
Other operating expenses | — | 2,227 | 1,292 | — | 3,519 | ||||||||||||
Total operating expenses | 37,655 | 556,891 | 165,148 | (5,859 | ) | 753,835 | |||||||||||
(Loss) income from operations | (37,655 | ) | 301,336 | 52,109 | 1,036 | 316,826 | |||||||||||
Earnings from consolidated affiliates | 294,036 | 48,134 | — | (342,170 | ) | — | |||||||||||
Other expense, net | (68,681 | ) | (14,570 | ) | (5,521 | ) | 586 | (88,186 | ) | ||||||||
Income before provision for income tax | 187,700 | 334,900 | 46,588 | (340,548 | ) | 228,640 | |||||||||||
Provision for income tax expense | 734 | 40,864 | — | — | 41,598 | ||||||||||||
Net income (loss) | 186,966 | 294,036 | 46,588 | (340,548 | ) | 187,042 | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 1,546 | 1,546 | ||||||||||||
Net income attributable to the Partnership’s unitholders | $ | 186,966 | $ | 294,036 | $ | 46,588 | $ | (339,002 | ) | $ | 188,588 | ||||||
(1) The condensed consolidating financial statements have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. The adjustments to the amounts previously reported were not material. | |||||||||||||||||
Schedule of condensed consolidating statements of cash flows | ' | ||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Net cash (used in) provided by operating activities | $ | (136,817 | ) | $ | 265,484 | $ | 188,042 | $ | 13,950 | $ | 330,659 | ||||||
Cash flows from investing activities: | |||||||||||||||||
Restricted cash | — | — | 15,500 | — | 15,500 | ||||||||||||
Capital expenditures | (655 | ) | (110,921 | ) | (2,049,794 | ) | (15,349 | ) | (2,176,719 | ) | |||||||
Equity investments in consolidated affiliates | (43,763 | ) | (1,404,800 | ) | — | 1,448,563 | — | ||||||||||
Investment in unconsolidated affiliates | — | (8,530 | ) | — | — | (8,530 | ) | ||||||||||
Distributions from consolidated affiliates | 72,673 | 455,966 | — | (528,639 | ) | — | |||||||||||
Acquisition of business, net of cash acquired | — | (225,210 | ) | — | — | (225,210 | ) | ||||||||||
Proceeds from disposal of property, plant and equipment | — | 582 | 208,070 | — | 208,652 | ||||||||||||
Net cash flows provided by (used in) investing activities | 28,255 | (1,292,913 | ) | (1,826,224 | ) | 904,575 | (2,186,307 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from public equity offerings, net | 1,039,849 | — | — | — | 1,039,849 | ||||||||||||
Proceeds from long-term debt | 1,000,000 | — | — | — | 1,000,000 | ||||||||||||
Payments of long-term debt | (501,112 | ) | — | — | — | (501,112 | ) | ||||||||||
Payments of premiums on redemption of long-term debt | (31,516 | ) | — | — | — | (31,516 | ) | ||||||||||
Payments for debt issuance costs, deferred financing costs and registration costs | (14,046 | ) | — | — | — | (14,046 | ) | ||||||||||
Payments related to intercompany financing, net | — | — | (1,399 | ) | 1,399 | — | |||||||||||
Contributions from parent and affiliates | — | 43,763 | 1,404,800 | (1,448,563 | ) | — | |||||||||||
Contributions from non-controlling interest | — | — | 685,219 | — | 685,219 | ||||||||||||
Share-based payment activity | (5,212 | ) | 650 | — | — | (4,562 | ) | ||||||||||
Payments of distributions | (333,946 | ) | (72,673 | ) | (456,146 | ) | 528,639 | (334,126 | ) | ||||||||
Payments of SMR liability | — | (1,661 | ) | — | — | (1,661 | ) | ||||||||||
Intercompany advances, net | (1,074,257 | ) | 1,074,257 | — | — | — | |||||||||||
Net cash flows (used in) provided by financing activities | 79,760 | 1,044,336 | 1,632,474 | (918,525 | ) | 1,838,045 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (28,802 | ) | 16,907 | (5,708 | ) | — | (17,603 | ) | |||||||||
Cash and cash equivalents at beginning of year | 210,015 | 102,979 | 32,762 | — | 345,756 | ||||||||||||
Cash and cash equivalents at end of period | $ | 181,213 | $ | 119,886 | $ | 27,054 | $ | — | $ | 328,153 | |||||||
Nine months ended September 30, 2012 (1) | |||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||
Subsidiaries | |||||||||||||||||
Net cash (used in) provided by operating activities | $ | (89,558 | ) | $ | 305,694 | $ | 170,976 | $ | (1,328 | ) | $ | 385,784 | |||||
Cash flows from investing activities: | |||||||||||||||||
Restricted cash | — | — | 1,003 | — | 1,003 | ||||||||||||
Capital expenditures | (120 | ) | (236,153 | ) | (1,005,270 | ) | 1,838 | (1,239,705 | ) | ||||||||
Equity investments | (42,120 | ) | (1,367,484 | ) | — | 1,408,765 | (839 | ) | |||||||||
Acquisition of business, net of cash acquired | — | — | (506,797 | ) | — | (506,797 | ) | ||||||||||
Distributions from consolidated affiliates | 48,973 | 95,814 | — | (144,787 | ) | — | |||||||||||
Collection of intercompany notes, net | (12,300 | ) | — | — | 12,300 | — | |||||||||||
Proceeds from disposal of property, plant and equipment | — | 1,718 | 84 | (1,213 | ) | 589 | |||||||||||
Net cash flows used in investing activities | (5,567 | ) | (1,506,105 | ) | (1,510,980 | ) | 1,276,903 | (1,745,749 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from public equity offering, net | 1,191,066 | — | — | — | 1,191,066 | ||||||||||||
Proceeds from Credit Facility | 511,100 | — | — | — | 511,100 | ||||||||||||
Payments of Credit Facility | (577,100 | ) | — | — | — | (577,100 | ) | ||||||||||
Proceeds from long-term debt | 742,613 | — | — | — | 742,613 | ||||||||||||
Payments related to intercompany financing, net | — | 12,300 | (703 | ) | (11,597 | ) | — | ||||||||||
Payments for deferred financing costs | (14,184 | ) | — | — | — | (14,184 | ) | ||||||||||
Contributions from parent and affiliates | — | 42,120 | 1,366,645 | (1,408,765 | ) | — | |||||||||||
Contributions from non-controlling interest | — | — | 56,101 | — | 56,101 | ||||||||||||
Share-based payment activity | (8,061 | ) | 2,216 | — | — | (5,845 | ) | ||||||||||
Payment of distributions | (244,169 | ) | (48,973 | ) | (95,885 | ) | 144,787 | (244,240 | ) | ||||||||
Payments of SMR liability | — | (1,525 | ) | — | — | (1,525 | ) | ||||||||||
Intercompany advances, net | (1,206,149 | ) | 1,206,149 | — | — | — | |||||||||||
Net cash flows provided by financing activities | 395,116 | 1,212,287 | 1,326,158 | (1,275,575 | ) | 1,657,986 | |||||||||||
Net increase (decrease) in cash | 299,991 | 11,876 | (13,846 | ) | — | 298,021 | |||||||||||
Cash and cash equivalents at beginning of year | 22 | 99,580 | 14,730 | — | 114,332 | ||||||||||||
Cash and cash equivalents at end of period | $ | 300,013 | $ | 111,456 | $ | 884 | $ | — | $ | 412,353 | |||||||
(1) The condensed consolidating financial statements have been restated to reflect the deconsolidation of MarkWest Pioneer as discussed in Note 3 of these Condensed Consolidated Financial Statements. The adjustments to the amounts previously reported were not material. |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information | ' | |||||||
Schedule of supplemental cash flow information | ' | |||||||
The following table provides information regarding supplemental cash flow information (in thousands): | ||||||||
Nine months ended September 30, | ||||||||
2013 | 2012 | |||||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest, net of amounts capitalized | $ | 111,626 | $ | 73,624 | ||||
Cash (received) paid for income taxes, net | (16,414 | ) | 18,925 | |||||
Supplemental schedule of non-cash investing and financing activities: | ||||||||
Accrued property, plant and equipment | $ | 614,355 | $ | 389,599 | ||||
Interest capitalized on construction in progress | 26,232 | 16,353 | ||||||
Issuance of common units for vesting of share-based payment awards | 4,861 | 2,506 |
Variable_Interest_Entity_Detai
Variable Interest Entity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2013 | Jan. 02, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2009 | |
Variable Interest Entity MarkWest Utica EMG | Variable Interest Entity MarkWest Utica EMG | Variable Interest Entity MarkWest Utica EMG | Variable Interest Entity MarkWest Utica EMG | Equity Method Investment MarkWest Pioneer | Equity Method Investment MarkWest Pioneer | |
Maximum | ||||||
Variable Interest Entities and Equity Method Investment | ' | ' | ' | ' | ' | ' |
Noncontrolling interest owners total funding commitment | $950,000,000 | $950,000,000 | $500,000,000 | ' | ' | ' |
Noncontrolling interest owners initial funding commitment to VIE | ' | ' | 750,000,000 | ' | ' | ' |
Percentage of initial capital funding of VIE | ' | ' | ' | 60.00% | ' | ' |
Percentage of capital required by reporting entity after non-controlling interest minimum contribution | 100.00% | 100.00% | ' | ' | ' | ' |
Aggregate contributions to VIE threshold | 2,000,000,000 | 2,000,000,000 | ' | ' | ' | ' |
Percentage of ownership interest in joint venture maximum | 70.00% | 70.00% | ' | ' | ' | ' |
Minimum Percentage of ownership interest held by non-controlling interest | 30.00% | 30.00% | ' | ' | ' | ' |
Maximum percentage of capital contribution to maintain ownership percentage | 10.00% | 10.00% | ' | ' | ' | ' |
Contribution, net of distributions, related to temporary contributions | ' | 279,900,000 | ' | ' | ' | ' |
Noncontrolling interest owners capital contribution preference threshold | 500,000,000 | 500,000,000 | ' | ' | ' | ' |
Accrual of preference amount to EMG Utica's investment balance during the period | 8,300,000 | 14,700,000 | ' | ' | ' | ' |
Minimum percentage of ownership interest held in joint venture | 51.00% | 51.00% | ' | ' | ' | ' |
Percentage of available cash to be received by the Partnership | 60.00% | 60.00% | ' | ' | ' | ' |
Maximum temporary funding by reporting entity | 150,000,000 | 150,000,000 | ' | ' | ' | ' |
Temporary capital contributed by partnership | 76,200,000 | 76,200,000 | ' | ' | ' | ' |
Distribution received as reimbursement for temporary funding | ' | 61,200,000 | ' | ' | ' | ' |
Capital contributed by partnership retained | 15,000,000 | 15,000,000 | ' | ' | ' | ' |
Percentage of ownership interest held in joint venture | ' | 60.00% | ' | ' | 50.00% | ' |
Percentage of ownership interest held by non-controlling interest | ' | ' | ' | ' | 50.00% | 50.00% |
Impairment of investment | ' | ' | ' | ' | ' | 39,200,000 |
Impairment of investment, net of provision for income tax | ' | ' | ' | ' | ' | $35,400,000 |
Variable_Interest_Entity_Detai1
Variable Interest Entity (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Balance sheet | ' | ' | ' | ' |
Cash and cash equivalents | $328,153 | $345,756 | $412,353 | $114,332 |
Receivables, net | 235,630 | 197,977 | ' | ' |
Other current assets | 39,834 | 34,871 | ' | ' |
Total current assets | 680,296 | 653,522 | ' | ' |
Property, plant and equipment | 7,848,221 | 5,542,316 | ' | ' |
Less: accumulated depreciation | -807,398 | -602,698 | ' | ' |
Total property, plant and equipment, net | 7,040,823 | 4,939,618 | ' | ' |
Investment in unconsolidated affiliates | 68,193 | 63,054 | ' | ' |
Other long-term assets | 3,275 | 2,140 | ' | ' |
Total assets | 8,917,716 | 6,728,362 | ' | ' |
Accounts payable | 420,087 | 320,627 | ' | ' |
Accrued liabilities | 494,626 | 390,178 | ' | ' |
Total current liabilities | 944,192 | 738,034 | ' | ' |
Deferred income taxes | ' | 189,428 | ' | ' |
Other long-term liabilities | 152,877 | 134,261 | ' | ' |
Non-controlling interest in consolidated subsidiaries | 579,967 | 261,463 | ' | ' |
Total equity | 4,150,443 | 3,111,398 | 2,515,696 | 1,395,242 |
Total liabilities and equity | 8,917,716 | 6,728,362 | ' | ' |
Common units | ' | ' | ' | ' |
Balance sheet | ' | ' | ' | ' |
Common units | 2,968,451 | 2,097,404 | ' | ' |
Total equity | 2,968,451 | 2,097,404 | 1,708,492 | 642,522 |
As previously reported | ' | ' | ' | ' |
Balance sheet | ' | ' | ' | ' |
Cash and cash equivalents | ' | 347,899 | 415,064 | 117,016 |
Receivables, net | ' | 198,769 | ' | ' |
Other current assets | ' | 35,053 | ' | ' |
Total current assets | ' | 656,639 | ' | ' |
Property, plant and equipment | ' | 5,700,176 | ' | ' |
Less: accumulated depreciation | ' | -624,548 | ' | ' |
Total property, plant and equipment, net | ' | 5,075,628 | ' | ' |
Investment in unconsolidated affiliates | ' | 31,179 | ' | ' |
Other long-term assets | ' | 2,242 | ' | ' |
Total assets | ' | 6,835,716 | ' | ' |
Accounts payable | ' | 320,645 | ' | ' |
Accrued liabilities | ' | 391,352 | ' | ' |
Total current liabilities | ' | 739,226 | ' | ' |
Deferred income taxes | ' | 191,318 | ' | ' |
Other long-term liabilities | ' | 134,340 | ' | ' |
Non-controlling interest in consolidated subsidiaries | ' | 328,346 | ' | ' |
Total equity | ' | 3,215,591 | 2,620,940 | 1,502,067 |
Total liabilities and equity | ' | 6,835,716 | ' | ' |
As previously reported | Common units | ' | ' | ' | ' |
Balance sheet | ' | ' | ' | ' |
Common units | ' | 2,134,714 | ' | ' |
Total equity | ' | ' | $1,745,672 | $679,309 |
Variable_Interest_Entity_Detai2
Variable Interest Entity (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of operations | ' | ' | ' | ' |
Revenue | $450,834 | $316,976 | $1,219,713 | $1,019,709 |
Total revenue | 420,516 | 280,576 | 1,208,909 | 1,070,661 |
Facility expenses | 77,542 | 52,883 | 199,849 | 149,438 |
Selling, general and administrative expenses | 26,647 | 21,723 | 77,388 | 68,471 |
Depreciation | 76,323 | 46,554 | 215,902 | 127,472 |
Accretion of asset retirement obligations | 160 | 140 | 669 | 536 |
Total operating expenses | 412,753 | 271,983 | 997,461 | 753,835 |
Income from operations | 7,763 | 8,593 | 211,448 | 316,826 |
Equity in earnings from unconsolidated affiliates | 896 | 706 | 1,561 | 2,254 |
(Loss) income before provision for income tax | -30,283 | -22,685 | 56,924 | 228,640 |
Net income | -20,027 | -15,265 | 44,340 | 187,042 |
Net (income) loss attributable to non-controlling interest | -3,577 | 925 | 297 | 1,546 |
As previously reported | ' | ' | ' | ' |
Statement of operations | ' | ' | ' | ' |
Revenue | ' | 320,137 | ' | 1,029,304 |
Total revenue | ' | 283,737 | ' | 1,080,256 |
Facility expenses | ' | 53,293 | ' | 150,671 |
Selling, general and administrative expenses | ' | 21,922 | ' | 69,025 |
Depreciation | ' | 48,136 | ' | 132,199 |
Accretion of asset retirement obligations | ' | 141 | ' | 540 |
Total operating expenses | ' | 274,175 | ' | 760,353 |
Income from operations | ' | 9,562 | ' | 319,903 |
Equity in earnings from unconsolidated affiliates | ' | 246 | ' | 788 |
(Loss) income before provision for income tax | ' | -22,176 | ' | 230,251 |
Net income | ' | -14,756 | ' | 188,653 |
Net (income) loss attributable to non-controlling interest | ' | $416 | ' | ($65) |
Variable_Interest_Entity_Detai3
Variable Interest Entity (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2012 |
As previously reported | As previously reported | As previously reported | |||||
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' |
Net income | ($20,027) | ($15,265) | $44,340 | $187,042 | ($14,756) | $188,653 | ' |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 76,323 | 46,554 | 215,902 | 127,472 | 48,136 | 132,199 | ' |
Accretion of asset retirement obligations | 160 | 140 | 669 | 536 | 141 | 540 | ' |
Equity in earnings from unconsolidated affiliate | -896 | -706 | -1,561 | -2,254 | -246 | -788 | ' |
Distributions from unconsolidated affiliate | ' | ' | 4,952 | 6,624 | ' | 2,200 | ' |
Receivables | ' | ' | -37,491 | 32,248 | ' | 32,739 | ' |
Other current assets | ' | ' | -4,963 | -12,866 | ' | -12,707 | ' |
Accounts payable and accrued liabilities | ' | ' | 29,664 | 36,837 | ' | 36,737 | ' |
Net cash provided by operating activities | ' | ' | 330,659 | 385,784 | ' | 389,718 | ' |
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | -2,176,719 | -1,239,705 | ' | -1,240,866 | ' |
Investment in unconsolidated affiliates | ' | ' | -8,530 | -839 | ' | ' | ' |
Net cash flows used in investing activities | ' | ' | -2,186,307 | -1,745,749 | ' | -1,746,071 | ' |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' |
Contributions from non-controlling interest | ' | ' | 685,219 | 56,101 | ' | 56,940 | ' |
Payment of distributions to non-controlling interest | ' | ' | -180 | -71 | ' | -4,495 | ' |
Net cash flows provided by financing activities | ' | ' | 1,838,045 | 1,657,986 | ' | 1,654,401 | ' |
Net (decrease) increase in cash and cash equivalents | ' | ' | -17,603 | 298,021 | ' | 298,048 | ' |
Cash and cash equivalents at beginning of year | ' | ' | 345,756 | 114,332 | ' | 117,016 | 347,899 |
Cash and cash equivalents at end of period | $328,153 | $412,353 | $328,153 | $412,353 | $415,064 | $415,064 | $347,899 |
Variable_Interest_Entity_Detai4
Variable Interest Entity (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 |
Common Units | Common Units | Non-controlling Interest | Non-controlling Interest | As previously reported | As previously reported | As previously reported | As previously reported | As previously reported | |||||
Common Units | Non-controlling Interest | ||||||||||||
Variable Interest Entities and Equity Method Investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance | ' | ' | $3,111,398 | $1,395,242 | $2,097,404 | $642,522 | $261,463 | $189 | ' | $1,502,067 | $3,215,591 | $679,309 | $70,227 |
Distributions paid | ' | ' | -334,126 | -244,240 | -333,946 | -244,169 | -180 | -71 | ' | -248,664 | ' | -244,169 | -4,495 |
Contributions from non-controlling interest | ' | ' | 685,219 | 56,101 | ' | ' | 685,219 | 56,101 | ' | 56,940 | ' | ' | 56,940 |
Deferred income tax impact from changes in equity | ' | ' | -37,346 | -75,248 | -37,346 | -75,248 | ' | ' | ' | -74,855 | ' | -74,855 | ' |
Net income (loss) | -20,027 | -15,265 | 44,340 | 187,042 | 44,637 | 188,588 | -297 | -1,546 | -14,756 | 188,653 | ' | 188,588 | 65 |
Balance | $4,150,443 | $2,515,696 | $4,150,443 | $2,515,696 | $2,968,451 | $1,708,492 | $579,967 | $54,673 | $2,620,940 | $2,620,940 | $3,215,591 | $1,745,672 | $122,737 |
Business_Combination_Details
Business Combination (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | 8-May-13 | 8-May-13 | 8-May-13 | 8-May-13 |
Buffalo Creek Acquisition | Buffalo Creek Acquisition | Buffalo Creek Acquisition | Buffalo Creek Acquisition | Buffalo Creek Acquisition | |||
Chesapeake | Chesapeake | Chesapeake | |||||
mi | Texas | Oklahoma | |||||
acre | mi | mi | |||||
Business Combination | ' | ' | ' | ' | ' | ' | ' |
Cash purchase price | ' | ' | ' | ' | $225,200,000 | ' | ' |
Capacity of cryogenic gas processing plant (in MMcf/d) | ' | ' | ' | ' | 200 | ' | ' |
Length of gas gathering pipeline (in miles) | ' | ' | ' | ' | ' | 22 | 5 |
Length of rights-of-way associated with the future construction of a high-pressure trunk line (in miles) | ' | ' | ' | ' | 30 | ' | ' |
Area of land (in acres) | ' | ' | ' | ' | 130,000 | ' | ' |
Extended additional term of the keep-whole processing agreement | ' | ' | ' | ' | '5 years | ' | ' |
Additional cash paid as consideration for extension term of the keep-whole processing agreement | ' | ' | ' | ' | 20,000,000 | ' | ' |
Assets: | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | 144,115,000 | ' | ' | ' |
Goodwill | 144,856,000 | 142,174,000 | ' | 2,682,000 | ' | ' | ' |
Intangible asset | ' | ' | ' | 84,500,000 | ' | ' | ' |
Liabilities: | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | 6,087,000 | ' | ' | ' |
Total | ' | ' | $225,200,000 | $225,210,000 | ' | ' | ' |
Estimated useful life of intangibles | ' | ' | '20 years | ' | ' | ' | ' |
Divestiture_Details
Divestiture (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | |
Summit | Summit | |||||
Sherwood | Minimum | |||||
item | Sherwood | |||||
hp | ||||||
mi | ||||||
Divestiture | ' | ' | ' | ' | ' | ' |
Proceeds from divestiture | ' | ' | ' | ' | $207,900,000 | ' |
Length of gas gathering pipelines (in miles) | ' | ' | ' | ' | ' | 40 |
Number of compressor stations | ' | ' | ' | ' | 2 | ' |
Power of compressor stations | ' | ' | ' | ' | ' | 21,000 |
Carrying value of assets | ' | ' | ' | ' | 169,000,000 | ' |
Gain on sale of asset | ($1,840,000) | ($655,000) | $35,758,000 | ($2,983,000) | $38,900,000 | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Commodity contracts | ' |
Derivative financial instruments | ' |
Direct product NGL derivative contracts as a percentage of derivative positions used to manage future commodity price exposure | 80.00% |
Commodity contracts | Derivative instruments not designated as hedging instruments | ' |
Derivative financial instruments | ' |
Notional quantity of crude oil contract (in bbl) | 1,409,056 |
Notional quantity of natural gas contract (in MMBtu) | 4,171,700 |
Natural Gas Liquids (gal) | 140,771,757 |
Embedded Derivatives in commodity contracts | Embedded derivative in natural gas processing and purchase contract | ' |
Derivative financial instruments | ' |
Notional amount for embedded derivative in commodity contract (in Dth per day) | 9,000 |
Producer's option to extend successive years, number | '5 years |
Estimated fair value of embedded derivative contract liability including portion allocable to host processing agreement | $81,957,000 |
Inception value for period from April 1, 2015 to December 31, 2022 | -53,507,000 |
Recorded value of embedded derivative contract liability | 28,450,000 |
Embedded Derivatives in commodity contracts | Embedded derivative in electricity purchase contract | ' |
Derivative financial instruments | ' |
Estimated fair value of embedded derivative contract asset | $3,300,000 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Statement Impact of Derivative Instruments | ' | ' |
Assets | $20,265 | $30,382 |
Liabilities | -50,523 | -59,419 |
Commodity contracts | Derivative instruments not designated as hedging instruments | ' | ' |
Financial Statement Impact of Derivative Instruments | ' | ' |
Assets | 20,265 | 30,382 |
Liabilities | -50,523 | -59,419 |
Commodity contracts | Derivative instruments not designated as hedging instruments | Current Assets | ' | ' |
Financial Statement Impact of Derivative Instruments | ' | ' |
Assets | 15,710 | 19,504 |
Commodity contracts | Derivative instruments not designated as hedging instruments | Long-term assets | ' | ' |
Financial Statement Impact of Derivative Instruments | ' | ' |
Assets | 4,555 | 10,878 |
Commodity contracts | Derivative instruments not designated as hedging instruments | Current Liabilities | ' | ' |
Financial Statement Impact of Derivative Instruments | ' | ' |
Liabilities | -29,479 | -27,229 |
Commodity contracts | Derivative instruments not designated as hedging instruments | Long-term liabilities | ' | ' |
Financial Statement Impact of Derivative Instruments | ' | ' |
Liabilities | ($21,044) | ($32,190) |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Gross Amounts of Assets in the Consolidated Balance Sheet | $20,265 | $30,382 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | -12,157 | -12,178 |
Net Amount | 8,108 | 18,204 |
Liabilities | ' | ' |
Gross Amounts of Liabilities in the Consolidated Balance Sheet | -50,523 | -59,419 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | 12,157 | 12,178 |
Net Amount | -38,366 | -47,241 |
Current Assets | ' | ' |
Assets | ' | ' |
Gross Amounts of Assets in the Consolidated Balance Sheet | 15,710 | 19,504 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | -10,365 | -9,541 |
Net Amount | 5,345 | 9,963 |
Non-current Assets | ' | ' |
Assets | ' | ' |
Gross Amounts of Assets in the Consolidated Balance Sheet | 4,555 | 10,878 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | -1,792 | -2,637 |
Net Amount | 2,763 | 8,241 |
Current Liabilities | ' | ' |
Liabilities | ' | ' |
Gross Amounts of Liabilities in the Consolidated Balance Sheet | -29,479 | -27,229 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | 10,365 | 9,541 |
Net Amount | -19,114 | -17,688 |
Non-current Liabilities | ' | ' |
Liabilities | ' | ' |
Gross Amounts of Liabilities in the Consolidated Balance Sheet | -21,044 | -32,190 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | 1,792 | 2,637 |
Net Amount | -19,252 | -29,553 |
Commodity contracts | Current Assets | ' | ' |
Assets | ' | ' |
Gross Amounts of Assets in the Consolidated Balance Sheet | 12,630 | 16,438 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | -10,365 | -9,541 |
Net Amount | 2,265 | 6,897 |
Commodity contracts | Non-current Assets | ' | ' |
Assets | ' | ' |
Gross Amounts of Assets in the Consolidated Balance Sheet | 4,289 | 7,798 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | -1,792 | -2,637 |
Net Amount | 2,497 | 5,161 |
Commodity contracts | Current Liabilities | ' | ' |
Liabilities | ' | ' |
Gross Amounts of Liabilities in the Consolidated Balance Sheet | -19,372 | -16,679 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | 10,365 | 9,541 |
Net Amount | -9,007 | -7,138 |
Commodity contracts | Non-current Liabilities | ' | ' |
Liabilities | ' | ' |
Gross Amounts of Liabilities in the Consolidated Balance Sheet | -2,701 | -2,637 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | 1,792 | 2,637 |
Net Amount | -909 | ' |
Embedded Derivatives in commodity contracts | Current Assets | ' | ' |
Assets | ' | ' |
Gross Amounts of Assets in the Consolidated Balance Sheet | 3,080 | 3,066 |
Net Amount | 3,080 | 3,066 |
Embedded Derivatives in commodity contracts | Non-current Assets | ' | ' |
Assets | ' | ' |
Gross Amounts of Assets in the Consolidated Balance Sheet | 266 | 3,080 |
Net Amount | 266 | 3,080 |
Embedded Derivatives in commodity contracts | Current Liabilities | ' | ' |
Liabilities | ' | ' |
Gross Amounts of Liabilities in the Consolidated Balance Sheet | -10,107 | -10,550 |
Net Amount | -10,107 | -10,550 |
Embedded Derivatives in commodity contracts | Non-current Liabilities | ' | ' |
Liabilities | ' | ' |
Gross Amounts of Liabilities in the Consolidated Balance Sheet | -18,343 | -29,553 |
Net Amount | ($18,343) | ($29,553) |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Impact of the Partnership's derivative instruments on Condensed Consolidated Statements of Operations | ' | ' | ' | ' |
Unrealized (loss) gain | ' | ' | ($1,222) | $101,815 |
Derivative instruments not designated as hedging instruments | ' | ' | ' | ' |
Impact of the Partnership's derivative instruments on Condensed Consolidated Statements of Operations | ' | ' | ' | ' |
Total (loss) gain | -52,884 | -52,071 | -2,702 | 70,952 |
Derivative instruments not designated as hedging instruments | Revenue: Derivative (loss) gain | ' | ' | ' | ' |
Impact of the Partnership's derivative instruments on Condensed Consolidated Statements of Operations | ' | ' | ' | ' |
Realized (loss) gain | -3,631 | -2,025 | 3,356 | -9,662 |
Unrealized (loss) gain | -26,687 | -34,375 | -14,160 | 60,614 |
Total (loss) gain | -30,318 | -36,400 | -10,804 | 50,952 |
Derivative instruments not designated as hedging instruments | Derivative (loss) gain related to purchased product costs | ' | ' | ' | ' |
Impact of the Partnership's derivative instruments on Condensed Consolidated Statements of Operations | ' | ' | ' | ' |
Realized (loss) gain | -1,711 | -6,334 | -4,836 | -21,201 |
Unrealized (loss) gain | -18,523 | -5,309 | 15,738 | 42,337 |
Total (loss) gain | -20,234 | -11,643 | 10,902 | 21,136 |
Derivative instruments not designated as hedging instruments | Derivative loss related to facility expenses | ' | ' | ' | ' |
Impact of the Partnership's derivative instruments on Condensed Consolidated Statements of Operations | ' | ' | ' | ' |
Unrealized (loss) gain | ($2,332) | ($4,028) | ($2,800) | ($1,136) |
Fair_Value_Details
Fair Value (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative instruments carried at fair value in Condensed Consolidated Balance Sheet | ' | ' |
Total carrying value of derivative assets in Condensed Consolidated Balance Sheet | $20,265 | $30,382 |
Total carrying value of derivative liabilities in Condensed Consolidated Balance Sheet | -50,523 | -59,419 |
Recurring | Significant other observable inputs (Level 2) | Commodity contracts | ' | ' |
Derivative instruments carried at fair value in Condensed Consolidated Balance Sheet | ' | ' |
Total carrying value of derivative assets in Condensed Consolidated Balance Sheet | 3,518 | 8,441 |
Total carrying value of derivative liabilities in Condensed Consolidated Balance Sheet | -11,615 | -15,970 |
Recurring | Significant unobservable inputs (Level 3) | Commodity contracts | ' | ' |
Derivative instruments carried at fair value in Condensed Consolidated Balance Sheet | ' | ' |
Total carrying value of derivative assets in Condensed Consolidated Balance Sheet | 13,401 | 15,795 |
Total carrying value of derivative liabilities in Condensed Consolidated Balance Sheet | -10,458 | -3,346 |
Recurring | Significant unobservable inputs (Level 3) | Embedded derivatives in commodity contracts | ' | ' |
Derivative instruments carried at fair value in Condensed Consolidated Balance Sheet | ' | ' |
Total carrying value of derivative assets in Condensed Consolidated Balance Sheet | 3,346 | 6,146 |
Total carrying value of derivative liabilities in Condensed Consolidated Balance Sheet | ($28,450) | ($40,103) |
Fair_Value_Details_2
Fair Value (Details 2) (Commodity contracts, Significant unobservable inputs (Level 3)) | 9 Months Ended |
Sep. 30, 2013 | |
Assets | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Crude option volatilities (as a percent) | 16.37% |
Assets | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Crude option volatilities (as a percent) | 22.15% |
Assets | Propane prices | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 0.97 |
Assets | Propane prices | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.07 |
Assets | Isobutane prices | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.28 |
Assets | Isobutane prices | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.41 |
Assets | Normal butane prices | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.21 |
Assets | Normal butane prices | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.38 |
Assets | Natural gasoline prices | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.93 |
Assets | Natural gasoline prices | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 2.07 |
Liabilities | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Propane option volatilities (as a percent) | 14.01% |
Crude option volatilities (as a percent) | 11.61% |
Liabilities | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Propane option volatilities (as a percent) | 26.14% |
Crude option volatilities (as a percent) | 26.45% |
Liabilities | Propane prices | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 0.97 |
Liabilities | Propane prices | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.07 |
Liabilities | Isobutane prices | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.28 |
Liabilities | Isobutane prices | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.4 |
Liabilities | Normal butane prices | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.21 |
Liabilities | Normal butane prices | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.37 |
Liabilities | Natural gasoline prices | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 2.03 |
Liabilities | Natural gasoline prices | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 2.07 |
Fair_Value_Details_3
Fair Value (Details 3) (Embedded Derivatives in Commodity Contracts (net), Significant unobservable inputs (Level 3)) | 9 Months Ended |
Sep. 30, 2013 | |
item | |
Assets | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets | ' |
Forward ERCOT Pricing (per MegaWatt Hour) | 29.19 |
Assets | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets | ' |
Forward ERCOT Pricing (per MegaWatt Hour) | 58.68 |
Liabilities | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Probability of renewal (as a percent) | 0.00% |
Number of renewal periods | 2 |
Term of counterparty option to renew gas purchase agreement | '5 years |
Propane prices | Liabilities | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 0.89 |
Propane prices | Liabilities | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.07 |
Isobutane prices | Liabilities | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.26 |
Isobutane prices | Liabilities | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.41 |
Normal butane prices | Liabilities | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.14 |
Normal butane prices | Liabilities | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.38 |
Natural gasoline prices | Liabilities | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 1.73 |
Natural gasoline prices | Liabilities | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 2.07 |
Natural gas prices | Liabilities | Minimum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 3.5 |
Natural gas prices | Liabilities | Maximum | ' |
Unobservable inputs used in the valuation of Level 3 instruments of Assets and Liabilities | ' |
Forward price (in dollars per unit) | 5.5 |
Fair_Value_Details_4
Fair Value (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Commodity Derivative Contracts (net) | ' | ' | ' | ' |
Derivative assets and liabilities classified by the Partnership within Level 3 of the valuation hierarchy | ' | ' | ' | ' |
Fair value at beginning of period | $26,378 | $29,556 | $12,449 | ($2,965) |
Total (loss) gain (realized and unrealized) included in earnings | -24,269 | -13,199 | -4,050 | 21,016 |
Settlements | 834 | 415 | -5,456 | -1,279 |
Fair value at end of period | 2,943 | 16,772 | 2,943 | 16,772 |
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to contracts still held at end of period | -20,250 | -11,754 | -5,656 | 14,843 |
Embedded Derivatives in Commodity Contracts (net) | ' | ' | ' | ' |
Derivative assets and liabilities classified by the Partnership within Level 3 of the valuation hierarchy | ' | ' | ' | ' |
Fair value at beginning of period | -2,403 | -10,395 | -33,957 | -53,904 |
Total (loss) gain (realized and unrealized) included in earnings | -24,786 | -19,842 | 2,206 | 17,829 |
Settlements | 2,085 | 2,262 | 6,647 | 8,100 |
Fair value at end of period | -25,104 | -27,975 | -25,104 | -27,975 |
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to contracts still held at end of period | ($22,742) | ($15,643) | $3,883 | $17,728 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
NGLs | $24,739 | $14,763 |
Spare parts, materials and supplies | 10,775 | 9,870 |
Total inventories | $35,514 | $24,633 |
Goodwill_Details
Goodwill (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Changes in goodwill | ' | ' |
Gross goodwill beginning of the period | $170,879 | ' |
Acquisition | 2,682 | ' |
Gross goodwill end of the period | 173,561 | ' |
Cumulative impairment | -28,705 | ' |
Balance at the end of the period | 144,856 | 142,174 |
Marcellus | ' | ' |
Changes in goodwill | ' | ' |
Gross goodwill beginning of the period | ' | 74,256 |
Gross goodwill end of the period | 74,256 | 74,256 |
Balance at the end of the period | 74,256 | ' |
Northeast Segment | ' | ' |
Changes in goodwill | ' | ' |
Gross goodwill beginning of the period | ' | 62,445 |
Gross goodwill end of the period | 62,445 | 62,445 |
Balance at the end of the period | 62,445 | ' |
Southwest Segment | ' | ' |
Changes in goodwill | ' | ' |
Gross goodwill beginning of the period | 34,178 | ' |
Acquisition | 2,682 | ' |
Gross goodwill end of the period | 36,860 | ' |
Cumulative impairment | -28,705 | ' |
Balance at the end of the period | $8,155 | ' |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 1 Months Ended | 9 Months Ended | |
Jan. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Long-Term Debt | ' | ' | ' |
Long-term debt, net of discounts | ' | $3,022,887,000 | $2,523,051,000 |
Long-term debt, discounts | ' | 7,113,000 | 8,061,000 |
Ownership of the Partnership in its guarantor subsidiaries (as a percent) | ' | 100.00% | ' |
Pre-tax loss on repurchase of debt | 38,500,000 | ' | ' |
Non-cash write-off of the unamortized discount and deferred finance costs | 7,000,000 | ' | ' |
Payments of premiums on redemption of long-term debt | 31,500,000 | 31,516,000 | ' |
Credit Facility | ' | ' | ' |
Long-Term Debt | ' | ' | ' |
Applicable interest rate (as a percent) | ' | 5.00% | ' |
Ownership of the Partnership in its guarantor subsidiaries (as a percent) | ' | 100.00% | ' |
Borrowings outstanding | ' | 0 | ' |
Letters of credit outstanding amount | ' | 11,300,000 | ' |
Credit facility remaining borrowing capacity | ' | 1,188,700,000 | ' |
Amount available for borrowing based on financial covenant requirements | ' | 530,000,000 | ' |
Senior Notes | ' | ' | ' |
Long-Term Debt | ' | ' | ' |
Estimate aggregate fair value of debt | ' | 3,065,000,000 | 2,763,000,000 |
2018 Senior Notes, 8.75% interest, issued April and May 2008 | ' | ' | ' |
Long-Term Debt | ' | ' | ' |
Long-term debt, net of discounts | ' | ' | 81,003,000 |
Debt instrument, stated interest rate percentage | 8.75% | 8.75% | 8.75% |
Long-term debt, discounts | ' | 0 | 109,000 |
Amount of debt repurchased | 81,100,000 | ' | ' |
2020 Senior Notes, 6.75% interest, issued November 2010 and due November 2020 | ' | ' | ' |
Long-Term Debt | ' | ' | ' |
Long-term debt, net of discounts | ' | 500,000,000 | 500,000,000 |
Debt instrument, stated interest rate percentage | ' | 6.75% | 6.75% |
2021 Senior Notes, 6.5% interest, issued February and March 2011 and due August 2021 | ' | ' | ' |
Long-Term Debt | ' | ' | ' |
Long-term debt, net of discounts | ' | 324,510,000 | 499,174,000 |
Debt instrument, stated interest rate percentage | 6.50% | 6.50% | 6.50% |
Long-term debt, discounts | ' | 490,000 | 826,000 |
Amount of debt repurchased | 175,000,000 | ' | ' |
2022 Senior Notes, 6.25% interest, issued October 2011 and due June 2022 | ' | ' | ' |
Long-Term Debt | ' | ' | ' |
Long-term debt, net of discounts | ' | 455,000,000 | 700,000,000 |
Debt instrument, stated interest rate percentage | 6.25% | 6.25% | 6.25% |
Amount of debt repurchased | 245,000,000 | ' | ' |
2023A Senior Notes, 5.5% interest, issued August 2012 and due February 2023 | ' | ' | ' |
Long-Term Debt | ' | ' | ' |
Long-term debt, net of discounts | ' | 743,377,000 | 742,874,000 |
Debt instrument, stated interest rate percentage | ' | 5.50% | 5.50% |
Long-term debt, discounts | ' | 6,623,000 | 7,126,000 |
2023B Senior Notes, 4.5% interest, issued January 2013 and due July 2023 | ' | ' | ' |
Long-Term Debt | ' | ' | ' |
Long-term debt, net of discounts | ' | 1,000,000,000 | ' |
Debt instrument, stated interest rate percentage | 4.50% | 4.50% | ' |
Aggregate principal amount of public offering | 1,000,000,000 | ' | ' |
Proceeds from issuance of senior notes, net of underwriting fees and the other expenses of the offering | $986,000,000 | ' | ' |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||||||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 02, 2014 | Jul. 02, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Aug. 07, 2013 | Sep. 30, 2013 | Sep. 05, 2013 | Sep. 30, 2013 |
Common Units | Common Units | Common Units | Class B Units | Class B Units | Class B Units | Class B Units | Maximum | Maximum | Maximum | Maximum | Minimum | Minimum | Minimum | Minimum | November 2012 ATM | August 2013 ATM | August 2013 ATM | September 2013 ATM | September 2013 ATM | |||||||
M & R | M & R | Common Units | Common Units | Common Units | Common Units | Common Units | ||||||||||||||||||||
item | ||||||||||||||||||||||||||
Equity Offerings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate common units sold (in units) | ' | ' | ' | ' | 0 | ' | 16,112 | 22,408 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,300 | ' | 5,900 | ' | 900 |
Proceeds from public equity offerings, net | ' | ' | ' | ' | $1,039,849,000 | $1,191,066,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $584,300,000 | ' | $396,000,000 | ' | $59,500,000 |
Manager fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,400,000 | ' | 4,000,000 | ' | 600,000 |
Common units | ' | ' | ' | ' | ' | ' | 147,763 | ' | 127,494 | 15,964 | 19,954 | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of anniversaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering under program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000,000 | ' | $1,000,000,000 | ' |
Common Unit Price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $72.35 | $71.20 | $61.97 | $55.95 | $65.27 | $56.90 | $51.77 | $46.03 | ' | ' | ' | ' | ' |
Distributions of Available Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution per common unit (in dollars per unit) | $0.85 | $0.84 | $0.83 | $0.82 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax | ' | ' | ' | ' |
Income before provision for income tax | ($30,283) | ($22,685) | $56,924 | $228,640 |
Federal income tax at statutory rate | ' | ' | 8,918 | 26,138 |
Permanent items | ' | ' | 25 | 21 |
State income taxes, net of federal benefit | ' | ' | 665 | 4,152 |
Provision on income from Class A units | ' | ' | 2,976 | 11,287 |
Total provision for income tax | -10,256 | -7,420 | 12,584 | 41,598 |
Corporation | ' | ' | ' | ' |
Income Tax | ' | ' | ' | ' |
Income before provision for income tax | ' | ' | 25,480 | 74,679 |
Federal statutory income tax rate (as a percent) | ' | ' | 35.00% | 35.00% |
Federal income tax at statutory rate | ' | ' | 8,918 | 26,138 |
Permanent items | ' | ' | 25 | 21 |
State income taxes, net of federal benefit | ' | ' | 511 | 3,418 |
Provision on income from Class A units | ' | ' | 2,976 | 11,287 |
Total provision for income tax | ' | ' | 12,430 | 40,864 |
Partnership | ' | ' | ' | ' |
Income Tax | ' | ' | ' | ' |
Income before provision for income tax | ' | ' | 40,223 | 151,752 |
Federal statutory income tax rate (as a percent) | ' | ' | 0.00% | 0.00% |
State income taxes, net of federal benefit | ' | ' | 154 | 734 |
Total provision for income tax | ' | ' | 154 | 734 |
Eliminations | ' | ' | ' | ' |
Income Tax | ' | ' | ' | ' |
Income before provision for income tax | ' | ' | ($8,779) | $2,209 |
Federal statutory income tax rate (as a percent) | ' | ' | 0.00% | 0.00% |
Earnings_Per_Common_Unit_Detai
Earnings Per Common Unit (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Common Unit | ' | ' | ' | ' |
Net (loss) income attributable to the Partnership's unitholders | ($23,604) | ($14,340) | $44,637 | $188,588 |
Less: Income allocable to phantom units | 618 | 541 | 1,718 | 1,595 |
(Loss) income available for common unitholders - basic | -24,222 | -14,881 | 42,919 | 186,993 |
Add: Income allocable to phantom units and DER expense | ' | ' | 1,774 | 1,627 |
(Loss) income available for common unitholders - diluted | -24,222 | -14,881 | 44,693 | 188,620 |
Weighted average common units outstanding - basic (in units) | 142,352,000 | 113,994,000 | 134,115,000 | 105,916,000 |
Potential common shares (Class B and phantom units) | ' | ' | 19,340,000 | 20,679,000 |
Weighted average common units outstanding - diluted (in units) | 142,352,000 | 113,994,000 | 153,455,000 | 126,595,000 |
Net (loss) income attributable to the Partnership's common unitholders per common unit | ' | ' | ' | ' |
Basic (in dollars per unit) | ($0.17) | ($0.13) | $0.32 | $1.77 |
Diluted (in dollars per unit) | ($0.17) | ($0.13) | $0.29 | $1.49 |
Anti-dilutive units (in units) | 16,760 | 20,641 | ' | ' |
Class B Units | ' | ' | ' | ' |
Earnings Per Common Unit | ' | ' | ' | ' |
Net (loss) income attributable to the Partnership's unitholders | $0 | $0 | $0 | $0 |
Net (loss) income attributable to the Partnership's common unitholders per common unit | ' | ' | ' | ' |
Basic (in dollars per unit) | $0 | $0 | $0 | $0 |
Diluted (in dollars per unit) | $0 | $0 | $0 | $0 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
item | item | |||
Segment Information | ' | ' | ' | ' |
Number of segments into which financial statements of Utica and Marcellus were combined due to the immateriality of Utica operations | ' | 1 | ' | 1 |
Segment information | ' | ' | ' | ' |
Revenue | $450,834 | $316,976 | $1,219,713 | $1,019,709 |
Purchased product costs | 191,672 | 119,369 | 499,588 | 386,655 |
Facility expenses | 77,542 | 52,883 | 199,849 | 149,438 |
Income from operations | 7,763 | 8,593 | 211,448 | 316,826 |
Capital expenditures | ' | ' | 2,176,719 | 1,239,705 |
Total segments | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' |
Revenue | 452,377 | 318,233 | 1,224,057 | 1,024,183 |
Purchased product costs | 191,672 | 119,369 | 499,588 | 386,655 |
Net operating margin | 260,705 | 198,864 | 724,469 | 637,528 |
Facility expenses | 79,397 | 55,378 | 206,326 | 156,676 |
Portion of operating loss attributable to non-controlling interests | -559 | -560 | -2,924 | -642 |
Income from operations | 181,867 | 144,046 | 521,067 | 481,494 |
Capital expenditures | ' | ' | 2,170,836 | 1,234,793 |
Unallocated Segment | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' |
Capital expenditures | ' | ' | 5,883 | 4,912 |
Marcellus | Total segments | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' |
Revenue | 147,290 | 78,707 | 375,844 | 213,761 |
Purchased product costs | 36,995 | 16,203 | 72,781 | 48,856 |
Net operating margin | 110,295 | 62,504 | 303,063 | 164,905 |
Facility expenses | 29,621 | 18,933 | 74,529 | 44,544 |
Income from operations | 80,674 | 43,571 | 228,534 | 120,361 |
Capital expenditures | ' | ' | 1,097,440 | 937,008 |
Utica Segment | Total segments | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' |
Revenue | 8,373 | 145 | 12,590 | 145 |
Net operating margin | 8,373 | 145 | 12,590 | 145 |
Facility expenses | 9,858 | 1,308 | 20,232 | 1,591 |
Portion of operating loss attributable to non-controlling interests | -599 | -627 | -3,081 | -740 |
Income from operations | -886 | -536 | -4,561 | -706 |
Capital expenditures | ' | ' | 961,538 | 82,366 |
Northeast Segment | Total segments | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' |
Revenue | 48,829 | 39,987 | 151,530 | 168,956 |
Purchased product costs | 15,330 | 11,054 | 50,118 | 49,662 |
Net operating margin | 33,499 | 28,933 | 101,412 | 119,294 |
Facility expenses | 7,359 | 6,267 | 20,538 | 17,577 |
Income from operations | 26,140 | 22,666 | 80,874 | 101,717 |
Capital expenditures | ' | ' | 3,418 | 70,206 |
Southwest Segment | Total segments | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' |
Revenue | 247,885 | 199,394 | 684,093 | 641,321 |
Purchased product costs | 139,347 | 92,112 | 376,689 | 288,137 |
Net operating margin | 108,538 | 107,282 | 307,404 | 353,184 |
Facility expenses | 32,559 | 28,870 | 91,027 | 92,964 |
Portion of operating loss attributable to non-controlling interests | 40 | 67 | 157 | 98 |
Income from operations | 75,939 | 78,345 | 216,220 | 260,122 |
Capital expenditures | ' | ' | $108,440 | $145,213 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment information | ' | ' | ' | ' |
Revenue | $450,834 | $316,976 | $1,219,713 | $1,019,709 |
Derivative (loss) gain not allocated to segments | -30,318 | -36,400 | -10,804 | 50,952 |
Revenue deferral adjustment and other | -1,543 | -1,257 | -4,344 | -4,474 |
Total revenue | 420,516 | 280,576 | 1,208,909 | 1,070,661 |
Selling, general and administrative expenses | -26,647 | -21,723 | -77,388 | -68,471 |
Depreciation | -76,323 | -46,554 | -215,902 | -127,472 |
Amortization of intangible assets | -16,003 | -14,988 | -47,925 | -38,280 |
(Gain) Loss on disposal of property, plant and equipment | -1,840 | -655 | 35,758 | -2,983 |
Accretion of asset retirement obligations | -160 | -140 | -669 | -536 |
Income from operations | 7,763 | 8,593 | 211,448 | 316,826 |
Earnings from unconsolidated affiliates | 896 | 706 | 1,561 | 2,254 |
Interest income | 27 | 64 | 238 | 295 |
Interest expense | -38,889 | -30,621 | -114,180 | -86,855 |
Amortization of deferred financing costs and discount (a component of interest expense) | -1,584 | -1,428 | -5,198 | -3,943 |
Loss on redemption of debt | ' | ' | -38,455 | ' |
Miscellaneous income, net | 1,504 | 1 | 1,510 | 63 |
(Loss) income before provision for income tax | -30,283 | -22,685 | 56,924 | 228,640 |
Total segments | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' |
Revenue | 452,377 | 318,233 | 1,224,057 | 1,024,183 |
Portion of operating loss attributable to non-controlling interests | -559 | -560 | -2,924 | -642 |
Income from operations | 181,867 | 144,046 | 521,067 | 481,494 |
Unallocated Segment | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' |
Derivative (loss) gain not allocated to segments | -30,318 | -36,400 | -10,804 | 50,952 |
Revenue deferral adjustment and other | -1,543 | -1,257 | -4,344 | -4,474 |
Derivative loss not allocated to segments | -52,884 | -52,071 | -2,702 | 70,952 |
Compensation expense included in facility expenses not allocated to segments | -833 | -193 | -1,587 | -826 |
Facility expenses adjustments | 2,688 | 2,688 | 8,064 | 8,064 |
Selling, general and administrative expenses | -26,647 | -21,723 | -77,388 | -68,471 |
Depreciation | -76,323 | -46,554 | -215,902 | -127,472 |
Amortization of intangible assets | -16,003 | -14,988 | -47,925 | -38,280 |
(Gain) Loss on disposal of property, plant and equipment | -1,840 | -655 | 35,758 | -2,983 |
Accretion of asset retirement obligations | -160 | -140 | -669 | -536 |
Earnings from unconsolidated affiliates | 896 | 706 | 1,561 | 2,254 |
Interest income | 27 | 64 | 238 | 295 |
Interest expense | -38,889 | -30,621 | -114,180 | -86,855 |
Amortization of deferred financing costs and discount (a component of interest expense) | -1,584 | -1,428 | -5,198 | -3,943 |
Loss on redemption of debt | ' | ' | -38,455 | ' |
Miscellaneous income, net | $1,504 | $1 | $1,510 | $63 |
Segment_Information_Details_3
Segment Information (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment information | ' | ' | ' | ' |
Management fee revenues unconsolidated affiliate | $0.20 | $0.30 | $0.80 | $1.10 |
Southwest Segment | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' |
Revenue deferral adjustment | 0.2 | 0.2 | 0.6 | 0.6 |
Northeast Segment | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' |
Revenue deferral adjustment | $1.50 | $1.40 | $4.50 | $5 |
Segment_Information_Details_4
Segment Information (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Segment Assets | ' | ' | ' | ' |
Certain cash and cash equivalents | $328,153 | $345,756 | $412,353 | $114,332 |
Fair value of derivatives | 20,265 | 30,382 | ' | ' |
Investment in unconsolidated affiliates | 68,193 | 63,054 | ' | ' |
Total assets | 8,917,716 | 6,728,362 | ' | ' |
Total segments | ' | ' | ' | ' |
Segment Assets | ' | ' | ' | ' |
Total assets | 8,474,707 | 6,276,468 | ' | ' |
Unallocated Segment | ' | ' | ' | ' |
Segment Assets | ' | ' | ' | ' |
Certain cash and cash equivalents | 250,133 | 261,473 | ' | ' |
Fair value of derivatives | 20,265 | 30,382 | ' | ' |
Investment in unconsolidated affiliates | 68,193 | 63,054 | ' | ' |
Other | 104,418 | 96,985 | ' | ' |
Total assets | 8,917,716 | 6,728,362 | ' | ' |
Marcellus | Total segments | ' | ' | ' | ' |
Segment Assets | ' | ' | ' | ' |
Total assets | 4,143,180 | 3,172,144 | ' | ' |
Utica Segment | Total segments | ' | ' | ' | ' |
Segment Assets | ' | ' | ' | ' |
Total assets | 1,379,200 | 439,987 | ' | ' |
Northeast Segment | Total segments | ' | ' | ' | ' |
Segment Assets | ' | ' | ' | ' |
Total assets | 580,788 | 578,122 | ' | ' |
Southwest Segment | Total segments | ' | ' | ' | ' |
Segment Assets | ' | ' | ' | ' |
Total assets | $2,371,539 | $2,086,215 | ' | ' |
Supplemental_Condensed_Consoli2
Supplemental Condensed Consolidating Financial Information (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Supplemental Condensed Consolidating Financial Information | ' | ' | ' | ' |
Ownership of the Partnership in its guarantor subsidiaries (as a percent) | 100.00% | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $328,153 | $345,756 | $412,353 | $114,332 |
Restricted cash | 10,000 | 25,500 | ' | ' |
Receivables and other current assets | 326,433 | 262,762 | ' | ' |
Fair value of derivative instruments | 15,710 | 19,504 | ' | ' |
Total current assets | 680,296 | 653,522 | ' | ' |
Total property, plant and equipment, net | 7,040,823 | 4,939,618 | ' | ' |
Other long-term assets: | ' | ' | ' | ' |
Restricted cash | 10,000 | 10,000 | ' | ' |
Investment in unconsolidated affiliates | 68,193 | 63,054 | ' | ' |
Intangibles, net of accumulated amortization | 891,512 | 855,155 | ' | ' |
Fair value of derivative instruments | 4,555 | 10,878 | ' | ' |
Other long-term assets | 222,337 | 196,135 | ' | ' |
Total assets | 8,917,716 | 6,728,362 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Fair value of derivative instruments | 29,479 | 27,229 | ' | ' |
Other current liabilities | 914,713 | 710,805 | ' | ' |
Total current liabilities | 944,192 | 738,034 | ' | ' |
Deferred income taxes | 260,035 | 189,428 | ' | ' |
Fair value of derivative instruments | 21,044 | 32,190 | ' | ' |
Long-term debt, net of discounts | 3,022,887 | 2,523,051 | ' | ' |
Other long-term liabilities | 152,877 | 134,261 | ' | ' |
Redeemable non-controlling interest | 366,238 | ' | ' | ' |
Equity: | ' | ' | ' | ' |
Non-controlling interest in consolidated subsidiaries | 579,967 | 261,463 | ' | ' |
Total equity | 4,150,443 | 3,111,398 | 2,515,696 | 1,395,242 |
Total liabilities and equity | 8,917,716 | 6,728,362 | ' | ' |
Common Units | ' | ' | ' | ' |
Equity: | ' | ' | ' | ' |
Common units | 2,968,451 | 2,097,404 | ' | ' |
Total equity | 2,968,451 | 2,097,404 | 1,708,492 | 642,522 |
Class B Units | ' | ' | ' | ' |
Equity: | ' | ' | ' | ' |
Common units | 602,025 | 752,531 | ' | ' |
Total equity | 602,025 | 752,531 | 752,531 | 752,531 |
Reportable legal entities | Parent | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 181,213 | 210,015 | 300,013 | 22 |
Receivables and other current assets | 3,146 | 9,191 | ' | ' |
Intercompany receivables | 440,839 | 812,562 | ' | ' |
Total current assets | 625,198 | 1,031,768 | ' | ' |
Total property, plant and equipment, net | 3,598 | 3,542 | ' | ' |
Other long-term assets: | ' | ' | ' | ' |
Investment in consolidated affiliates | 5,716,977 | 4,104,473 | ' | ' |
Intercompany notes receivable | 225,000 | 225,000 | ' | ' |
Other long-term assets | 54,046 | 50,866 | ' | ' |
Total assets | 6,624,819 | 5,415,649 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Intercompany payables | 1 | 461 | ' | ' |
Other current liabilities | 47,522 | 42,301 | ' | ' |
Total current liabilities | 47,523 | 42,762 | ' | ' |
Deferred income taxes | 3,061 | 2,906 | ' | ' |
Long-term debt, net of discounts | 3,022,887 | 2,523,051 | ' | ' |
Other long-term liabilities | 2,838 | 2,959 | ' | ' |
Equity: | ' | ' | ' | ' |
Total equity | 3,548,510 | 2,843,971 | ' | ' |
Total liabilities and equity | 6,624,819 | 5,415,649 | ' | ' |
Reportable legal entities | Parent | Common Units | ' | ' | ' | ' |
Equity: | ' | ' | ' | ' |
Common units | 2,946,485 | 2,091,440 | ' | ' |
Reportable legal entities | Parent | Class B Units | ' | ' | ' | ' |
Equity: | ' | ' | ' | ' |
Common units | 602,025 | 752,531 | ' | ' |
Reportable legal entities | Guarantor Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 119,886 | 102,979 | 111,456 | 99,580 |
Receivables and other current assets | 233,522 | 178,913 | ' | ' |
Intercompany receivables | 6,659 | 18,472 | ' | ' |
Fair value of derivative instruments | 14,872 | 18,389 | ' | ' |
Total current assets | 374,939 | 318,753 | ' | ' |
Total property, plant and equipment, net | 2,174,893 | 1,999,474 | ' | ' |
Other long-term assets: | ' | ' | ' | ' |
Investment in unconsolidated affiliates | 68,193 | 63,054 | ' | ' |
Investment in consolidated affiliates | 3,766,735 | 2,719,920 | ' | ' |
Intangibles, net of accumulated amortization | 608,748 | 559,320 | ' | ' |
Fair value of derivative instruments | 4,214 | 10,878 | ' | ' |
Other long-term assets | 92,380 | 70,009 | ' | ' |
Total assets | 7,090,102 | 5,741,408 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Intercompany payables | 486,870 | 839,543 | ' | ' |
Fair value of derivative instruments | 27,460 | 27,062 | ' | ' |
Other current liabilities | 214,180 | 197,934 | ' | ' |
Total current liabilities | 728,510 | 1,064,539 | ' | ' |
Deferred income taxes | 256,974 | 186,522 | ' | ' |
Long-term intercompany financing payable | 225,000 | 225,000 | ' | ' |
Fair value of derivative instruments | 20,996 | 32,190 | ' | ' |
Other long-term liabilities | 141,645 | 128,684 | ' | ' |
Equity: | ' | ' | ' | ' |
Total equity | 5,716,977 | 4,104,473 | ' | ' |
Total liabilities and equity | 7,090,102 | 5,741,408 | ' | ' |
Reportable legal entities | Guarantor Subsidiaries | Common Units | ' | ' | ' | ' |
Equity: | ' | ' | ' | ' |
Common units | 5,716,977 | 4,104,473 | ' | ' |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 27,054 | 32,762 | 884 | 14,730 |
Restricted cash | 10,000 | 25,500 | ' | ' |
Receivables and other current assets | 89,765 | 74,658 | ' | ' |
Intercompany receivables | 49,494 | 32,656 | ' | ' |
Fair value of derivative instruments | 838 | 1,115 | ' | ' |
Total current assets | 177,151 | 166,691 | ' | ' |
Total property, plant and equipment, net | 4,940,452 | 3,032,121 | ' | ' |
Other long-term assets: | ' | ' | ' | ' |
Restricted cash | 10,000 | 10,000 | ' | ' |
Intangibles, net of accumulated amortization | 282,764 | 295,835 | ' | ' |
Fair value of derivative instruments | 341 | ' | ' | ' |
Other long-term assets | 75,911 | 75,260 | ' | ' |
Total assets | 5,486,619 | 3,579,907 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Intercompany payables | 10,121 | 23,686 | ' | ' |
Fair value of derivative instruments | 2,019 | 167 | ' | ' |
Other current liabilities | 655,079 | 472,462 | ' | ' |
Total current liabilities | 667,219 | 496,315 | ' | ' |
Long-term intercompany financing payable | 98,018 | 99,592 | ' | ' |
Fair value of derivative instruments | 48 | ' | ' | ' |
Other long-term liabilities | 8,394 | 2,618 | ' | ' |
Equity: | ' | ' | ' | ' |
Total equity | 4,712,940 | 2,981,382 | ' | ' |
Total liabilities and equity | 5,486,619 | 3,579,907 | ' | ' |
Reportable legal entities | Non-Guarantor Subsidiaries | Common Units | ' | ' | ' | ' |
Equity: | ' | ' | ' | ' |
Common units | 4,712,940 | 2,981,382 | ' | ' |
Consolidating Adjustments | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivables | -496,992 | -863,690 | ' | ' |
Total current assets | -496,992 | -863,690 | ' | ' |
Total property, plant and equipment, net | -78,120 | -95,519 | ' | ' |
Other long-term assets: | ' | ' | ' | ' |
Investment in consolidated affiliates | -9,483,712 | -6,824,393 | ' | ' |
Intercompany notes receivable | -225,000 | -225,000 | ' | ' |
Total assets | -10,283,824 | -8,008,602 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Intercompany payables | -496,992 | -863,690 | ' | ' |
Other current liabilities | -2,068 | -1,892 | ' | ' |
Total current liabilities | -499,060 | -865,582 | ' | ' |
Long-term intercompany financing payable | -323,018 | -324,592 | ' | ' |
Redeemable non-controlling interest | 366,238 | ' | ' | ' |
Equity: | ' | ' | ' | ' |
Non-controlling interest in consolidated subsidiaries | 579,967 | 261,463 | ' | ' |
Total equity | -9,827,984 | -6,818,428 | ' | ' |
Total liabilities and equity | -10,283,824 | -8,008,602 | ' | ' |
Consolidating Adjustments | Common Units | ' | ' | ' | ' |
Equity: | ' | ' | ' | ' |
Common units | ($10,407,951) | ($7,079,891) | ' | ' |
Supplemental_Condensed_Consoli3
Supplemental Condensed Consolidating Financial Information (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidating Statements of Operations | ' | ' | ' | ' |
Total revenue | $420,516 | $280,576 | $1,208,909 | $1,070,661 |
Operating expenses: | ' | ' | ' | ' |
Purchased product costs | 211,906 | 131,012 | 488,686 | 365,519 |
Facility expenses | 79,874 | 56,911 | 202,649 | 150,574 |
Selling, general and administrative expenses | 26,647 | 21,723 | 77,388 | 68,471 |
Depreciation and amortization | 92,326 | 61,542 | 263,827 | 165,752 |
Other operating expenses (income) | 2,000 | 795 | -35,089 | 3,519 |
Total operating expenses | 412,753 | 271,983 | 997,461 | 753,835 |
Income from operations | 7,763 | 8,593 | 211,448 | 316,826 |
Loss on redemption of debt | ' | ' | -38,455 | ' |
Other (expense) income, net | -38,046 | -31,278 | -116,069 | -88,186 |
(Loss) income before provision for income tax | -30,283 | -22,685 | 56,924 | 228,640 |
Provision for income tax (benefit) expense | -10,256 | -7,420 | 12,584 | 41,598 |
Net (loss) income | -20,027 | -15,265 | 44,340 | 187,042 |
Net income attributable to non-controlling interest | -3,577 | 925 | 297 | 1,546 |
Net (loss) income attributable to the Partnership's unitholders | -23,604 | -14,340 | 44,637 | 188,588 |
Reportable legal entities | Parent | ' | ' | ' | ' |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses | 12,297 | 10,241 | 36,405 | 37,197 |
Depreciation and amortization | 155 | 146 | 674 | 458 |
Total operating expenses | 12,452 | 10,387 | 37,079 | 37,655 |
Income from operations | -12,452 | -10,387 | -37,079 | -37,655 |
Earnings from consolidated affiliates | 22,899 | 20,122 | 225,773 | 294,036 |
Loss on redemption of debt | ' | ' | -38,455 | ' |
Other (expense) income, net | -38,339 | -24,637 | -121,441 | -68,681 |
(Loss) income before provision for income tax | -27,892 | -14,902 | 28,798 | 187,700 |
Provision for income tax (benefit) expense | -7 | -31 | 154 | 734 |
Net (loss) income | -27,885 | -14,871 | 28,644 | 186,966 |
Net (loss) income attributable to the Partnership's unitholders | -27,885 | -14,871 | 28,644 | 186,966 |
Reportable legal entities | Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations | ' | ' | ' | ' |
Total revenue | 277,120 | 205,629 | 846,185 | 858,227 |
Operating expenses: | ' | ' | ' | ' |
Purchased product costs | 174,754 | 114,685 | 415,517 | 316,327 |
Facility expenses | 39,781 | 36,437 | 106,556 | 103,484 |
Selling, general and administrative expenses | 7,900 | 5,633 | 21,519 | 13,333 |
Depreciation and amortization | 45,898 | 41,593 | 135,408 | 121,520 |
Other operating expenses (income) | 1,970 | 488 | 3,308 | 2,227 |
Total operating expenses | 270,303 | 198,836 | 682,308 | 556,891 |
Income from operations | 6,817 | 6,793 | 163,877 | 301,336 |
Earnings from consolidated affiliates | 12,229 | 10,387 | 93,958 | 48,134 |
Other (expense) income, net | -6,396 | -4,447 | -19,632 | -14,570 |
(Loss) income before provision for income tax | 12,650 | 12,733 | 238,203 | 334,900 |
Provision for income tax (benefit) expense | -10,249 | -7,389 | 12,430 | 40,864 |
Net (loss) income | 22,899 | 20,122 | 225,773 | 294,036 |
Net (loss) income attributable to the Partnership's unitholders | 22,899 | 20,122 | 225,773 | 294,036 |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations | ' | ' | ' | ' |
Total revenue | 152,225 | 78,047 | 388,082 | 217,257 |
Operating expenses: | ' | ' | ' | ' |
Purchased product costs | 37,152 | 16,327 | 73,169 | 49,192 |
Facility expenses | 40,598 | 20,475 | 96,985 | 47,248 |
Selling, general and administrative expenses | 8,077 | 6,943 | 23,605 | 20,697 |
Depreciation and amortization | 47,570 | 21,381 | 131,865 | 46,719 |
Other operating expenses (income) | 30 | 307 | -40,477 | 1,292 |
Total operating expenses | 133,427 | 65,433 | 285,147 | 165,148 |
Income from operations | 18,798 | 12,614 | 102,935 | 52,109 |
Other (expense) income, net | -2,992 | -3,152 | -9,274 | -5,521 |
(Loss) income before provision for income tax | 15,806 | 9,462 | 93,661 | 46,588 |
Net (loss) income | 15,806 | 9,462 | 93,661 | 46,588 |
Net (loss) income attributable to the Partnership's unitholders | 15,806 | 9,462 | 93,661 | 46,588 |
Consolidating Adjustments | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations | ' | ' | ' | ' |
Total revenue | -8,829 | -3,100 | -25,358 | -4,823 |
Operating expenses: | ' | ' | ' | ' |
Facility expenses | -505 | -1 | -892 | -158 |
Selling, general and administrative expenses | -1,627 | -1,094 | -4,141 | -2,756 |
Depreciation and amortization | -1,297 | -1,578 | -4,120 | -2,945 |
Other operating expenses (income) | ' | ' | 2,080 | ' |
Total operating expenses | -3,429 | -2,673 | -7,073 | -5,859 |
Income from operations | -5,400 | -427 | -18,285 | 1,036 |
Earnings from consolidated affiliates | -35,128 | -30,509 | -319,731 | -342,170 |
Other (expense) income, net | 9,681 | 958 | 34,278 | 586 |
(Loss) income before provision for income tax | -30,847 | -29,978 | -303,738 | -340,548 |
Net (loss) income | -30,847 | -29,978 | -303,738 | -340,548 |
Net income attributable to non-controlling interest | -3,577 | 925 | 297 | 1,546 |
Net (loss) income attributable to the Partnership's unitholders | ($34,424) | ($29,053) | ($303,441) | ($339,002) |
Supplemental_Condensed_Consoli4
Supplemental Condensed Consolidating Financial Information (Details 3) (USD $) | 1 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' |
Net cash (used in) provided by operating activities | ' | $330,659 | $385,784 |
Cash flows from investing activities: | ' | ' | ' |
Restricted cash | ' | 15,500 | 1,003 |
Capital expenditures | ' | -2,176,719 | -1,239,705 |
Investment in unconsolidated affiliates | ' | -8,530 | -839 |
Acquisition of business, net of cash acquired | ' | -225,210 | -506,797 |
Proceeds from disposal of property, plant and equipment | ' | 208,652 | 589 |
Net cash flows used in investing activities | ' | -2,186,307 | -1,745,749 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from public equity offerings, net | ' | 1,039,849 | 1,191,066 |
Proceeds from long-term debt | ' | 1,000,000 | 742,613 |
Payments of long-term debt | ' | -501,112 | ' |
Payments of premiums on redemption of long-term debt | -31,500 | -31,516 | ' |
Payments for debt issuance costs, deferred financing costs and registration costs | ' | -14,046 | -14,184 |
Contributions from non-controlling interest | ' | 685,219 | 56,101 |
Share-based payment activity | ' | -4,562 | -5,845 |
Payments of distributions | ' | -334,126 | -244,240 |
Payments of SMR liability | ' | -1,661 | -1,525 |
Proceeds from Credit Facility | ' | ' | 511,100 |
Payments of Credit Facility | ' | ' | -577,100 |
Net cash flows provided by financing activities | ' | 1,838,045 | 1,657,986 |
Net (decrease) increase in cash and cash equivalents | ' | -17,603 | 298,021 |
Cash and cash equivalents at beginning of year | 345,756 | 345,756 | 114,332 |
Cash and cash equivalents at end of period | ' | 328,153 | 412,353 |
Reportable legal entities | Parent | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' |
Net cash (used in) provided by operating activities | ' | -136,817 | -89,558 |
Cash flows from investing activities: | ' | ' | ' |
Capital expenditures | ' | -655 | -120 |
Equity investments in consolidated affiliates | ' | -43,763 | -42,120 |
Distributions from consolidated affiliates | ' | 72,673 | 48,973 |
Collection of intercompany notes, net | ' | ' | -12,300 |
Net cash flows used in investing activities | ' | 28,255 | -5,567 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from public equity offerings, net | ' | 1,039,849 | 1,191,066 |
Proceeds from long-term debt | ' | 1,000,000 | 742,613 |
Payments of long-term debt | ' | -501,112 | ' |
Payments of premiums on redemption of long-term debt | ' | -31,516 | ' |
Payments for debt issuance costs, deferred financing costs and registration costs | ' | -14,046 | -14,184 |
Share-based payment activity | ' | -5,212 | -8,061 |
Payments of distributions | ' | -333,946 | -244,169 |
Intercompany advances, net | ' | -1,074,257 | -1,206,149 |
Proceeds from Credit Facility | ' | ' | 511,100 |
Payments of Credit Facility | ' | ' | -577,100 |
Net cash flows provided by financing activities | ' | 79,760 | 395,116 |
Net (decrease) increase in cash and cash equivalents | ' | -28,802 | 299,991 |
Cash and cash equivalents at beginning of year | 210,015 | 210,015 | 22 |
Cash and cash equivalents at end of period | ' | 181,213 | 300,013 |
Reportable legal entities | Guarantor Subsidiaries | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' |
Net cash (used in) provided by operating activities | ' | 265,484 | 305,694 |
Cash flows from investing activities: | ' | ' | ' |
Capital expenditures | ' | -110,921 | -236,153 |
Equity investments in consolidated affiliates | ' | -1,404,800 | -1,367,484 |
Investment in unconsolidated affiliates | ' | -8,530 | ' |
Distributions from consolidated affiliates | ' | 455,966 | 95,814 |
Acquisition of business, net of cash acquired | ' | -225,210 | ' |
Proceeds from disposal of property, plant and equipment | ' | 582 | 1,718 |
Net cash flows used in investing activities | ' | -1,292,913 | -1,506,105 |
Cash flows from financing activities: | ' | ' | ' |
Payments related to intercompany financing, net | ' | ' | 12,300 |
Contributions from parent and affiliates | ' | 43,763 | 42,120 |
Share-based payment activity | ' | 650 | 2,216 |
Payments of distributions | ' | -72,673 | -48,973 |
Payments of SMR liability | ' | -1,661 | -1,525 |
Intercompany advances, net | ' | 1,074,257 | 1,206,149 |
Net cash flows provided by financing activities | ' | 1,044,336 | 1,212,287 |
Net (decrease) increase in cash and cash equivalents | ' | 16,907 | 11,876 |
Cash and cash equivalents at beginning of year | 102,979 | 102,979 | 99,580 |
Cash and cash equivalents at end of period | ' | 119,886 | 111,456 |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' |
Net cash (used in) provided by operating activities | ' | 188,042 | 170,976 |
Cash flows from investing activities: | ' | ' | ' |
Restricted cash | ' | 15,500 | 1,003 |
Capital expenditures | ' | -2,049,794 | -1,005,270 |
Acquisition of business, net of cash acquired | ' | ' | -506,797 |
Proceeds from disposal of property, plant and equipment | ' | 208,070 | 84 |
Net cash flows used in investing activities | ' | -1,826,224 | -1,510,980 |
Cash flows from financing activities: | ' | ' | ' |
Payments related to intercompany financing, net | ' | -1,399 | -703 |
Contributions from parent and affiliates | ' | 1,404,800 | 1,366,645 |
Contributions from non-controlling interest | ' | 685,219 | 56,101 |
Payments of distributions | ' | -456,146 | -95,885 |
Net cash flows provided by financing activities | ' | 1,632,474 | 1,326,158 |
Net (decrease) increase in cash and cash equivalents | ' | -5,708 | -13,846 |
Cash and cash equivalents at beginning of year | 32,762 | 32,762 | 14,730 |
Cash and cash equivalents at end of period | ' | 27,054 | 884 |
Consolidating Adjustments | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' |
Net cash (used in) provided by operating activities | ' | 13,950 | -1,328 |
Cash flows from investing activities: | ' | ' | ' |
Capital expenditures | ' | -15,349 | 1,838 |
Equity investments in consolidated affiliates | ' | 1,448,563 | 1,408,765 |
Distributions from consolidated affiliates | ' | -528,639 | -144,787 |
Collection of intercompany notes, net | ' | ' | 12,300 |
Proceeds from disposal of property, plant and equipment | ' | ' | -1,213 |
Net cash flows used in investing activities | ' | 904,575 | 1,276,903 |
Cash flows from financing activities: | ' | ' | ' |
Payments related to intercompany financing, net | ' | 1,399 | -11,597 |
Contributions from parent and affiliates | ' | -1,448,563 | -1,408,765 |
Payments of distributions | ' | 528,639 | 144,787 |
Net cash flows provided by financing activities | ' | ($918,525) | ($1,275,575) |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental Cash Flow Information | ' | ' |
Cash paid for interest, net of amounts capitalized | $111,626 | $73,624 |
Cash (received) paid for income taxes, net | -16,414 | 18,925 |
Supplemental schedule of non-cash investing and financing activities: | ' | ' |
Accrued property, plant and equipment | 614,355 | 389,599 |
Interest capitalized on construction in progress | 26,232 | 16,353 |
Issuance of common units for vesting of share-based payment awards | $4,861 | $2,506 |