Reporting Segments | Reporting Segments Our operations are located in the United States and are organized into three reporting segments: i) Gathering and Processing, ii) Transmission and iii) Terminals. Gathering and Processing Our Gathering and Processing segment provides “wellhead-to-market” services to producers of natural gas and oil, which include transporting raw natural gas from the wellhead through gathering systems, treating the raw natural gas, processing raw natural gas to separate the NGLs from the natural gas, fractionating NGLs, and selling or delivering pipeline-quality natural gas and NGLs to various markets and pipeline systems. Transmission Our Transmission segment transports and delivers natural gas from producing wells, receipt points or pipeline interconnects for shippers and other customers, which include local distribution companies, utilities and industrial, commercial and power generation customers. Terminals Our Terminals segment provides above-ground storage services at our marine terminals that support various commercial customers, including commodity brokers, refiners and chemical manufacturers to store a range of products, including petroleum products, distillates, chemicals and agricultural products. These segments are monitored separately by management for performance and are consistent with the Partnership's internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Gross margin is the performance measure utilized by management to monitor the business of each segment. The following tables set forth our segment information for the three and six months ended June 30, 2015 and 2014 (in thousands): Three months ended June 30, 2015 Gathering and Processing Transmission Terminals Total Revenue $ 50,439 $ 12,423 $ 4,336 $ 67,198 Gain (loss) on commodity derivatives, net 311 — — 311 Total revenue 50,750 12,423 4,336 67,509 Operating expenses: Purchases of natural gas, NGL's and condensate 30,272 3,062 — 33,334 Direct operating expenses 9,130 3,253 1,584 13,967 Selling, general and administrative expenses 5,571 Equity compensation expense 550 Depreciation, amortization and accretion expense 9,250 Total operating expenses 62,672 Gain (loss) on sale of assets, net (2,970 ) Interest expense (3,556 ) Earnings in unconsolidated affiliates 4 Income tax benefit (expense) (317 ) Gain (loss) from discontinued operations, net of tax (31 ) Net income (loss) (2,033 ) Less: Net income (loss) attributable to noncontrolling interests 32 Net income (loss) attributable to the Partnership $ (2,065 ) Segment gross margin (a) $ 20,219 $ 9,333 $ 2,752 $ 32,304 Three months ended June 30, 2014 Gathering and Processing Transmission Terminals Total Revenue $ 50,015 $ 23,960 $ 3,898 $ 77,873 Gain (loss) on commodity derivatives, net (193 ) — — (193 ) Total revenue 49,822 23,960 3,898 77,680 Operating expenses: Purchases of natural gas, NGL's and condensate 39,238 14,580 — 53,818 Direct operating expenses 5,746 3,736 1,562 11,044 Selling, general and administrative expenses 5,637 Equity compensation expense 435 Depreciation, amortization and accretion expense 6,012 Total operating expenses 76,946 Interest expense (1,680 ) Income tax benefit (expense) (149 ) Gain (loss) from discontinued operations, net of tax (506 ) Net income (loss) (1,601 ) Less: Net income (loss) attributable to noncontrolling interests 66 Net income (loss) attributable to the Partnership $ (1,667 ) Segment gross margin (a) $ 10,481 $ 9,350 $ 2,336 $ 22,167 Six months ended June 30, 2015 Gathering and Processing Transmission Terminals Total Revenue $ 98,888 $ 24,171 $ 8,601 $ 131,660 Gain (loss) on commodity derivatives, net 458 — — 458 Total revenue 99,346 24,171 8,601 132,118 Operating expenses: Purchases of natural gas, NGL's and condensate 57,590 4,721 — 62,311 Direct operating expenses 18,223 6,432 3,179 27,834 Selling, general and administrative expenses 12,506 Equity compensation expense 2,248 Depreciation, amortization and accretion expense 18,939 Total operating expenses 123,838 Gain (loss) on sale of assets, net (2,978 ) Interest expense (6,166 ) Earnings in unconsolidated affiliates 171 Income tax benefit (expense) (473 ) Gain (loss) from discontinued operations, net of tax (26 ) Net income (loss) (1,192 ) Less: Net income (loss) attributable to noncontrolling interests 46 Net income (loss) attributable to the Partnership $ (1,238 ) Segment gross margin (a) $ 41,265 $ 19,394 $ 5,422 $ 66,081 Six months ended June 30, 2014 Gathering and Processing Transmission Terminals Total Revenue $ 101,641 $ 49,088 $ 7,512 $ 158,241 Gain (loss) on commodity derivatives, net (323 ) — — (323 ) Total revenue 101,318 49,088 7,512 157,918 Operating expenses: Purchases of natural gas, NGL's and condensate 80,359 28,680 — 109,039 Direct operating expenses 9,914 6,854 3,237 20,005 Selling, general and administrative expenses 11,230 Equity compensation expense 795 Depreciation, amortization and accretion expense 13,644 Total operating expenses 154,713 Gain (loss) on sale of assets, net (21 ) Interest expense (3,583 ) Income tax benefit (expense) (138 ) Gain (loss) from discontinued operations, net of tax (556 ) Net income (loss) (1,093 ) Less: Net income (loss) attributable to noncontrolling interests 174 Net income (loss) attributable to the Partnership $ (1,267 ) Segment gross margin (a) $ 20,610 $ 20,363 $ 4,275 $ 45,248 June 30, December 31, 2015 2014 Segment assets: Gathering and Processing $ 684,359 $ 686,395 Transmission 128,291 132,767 Terminals 83,766 71,180 Other (b) 40,231 26,302 Total assets $ 936,647 $ 916,644 (a) Segment gross margin for our Gathering and Processing segment consists of revenue and realized gains or (losses) on commodity derivatives less purchases of natural gas, NGLs and condensate and revenue from construction, operating and maintenance agreements (“COMA”). Segment gross margin for our Transmission segment consists of revenue, less purchases of natural gas and COMA. Segment gross margin for our Terminals segment consists of revenue, less direct operating expenses. Gross margin consists of the sum of the segment gross margin amounts for each of these segments. As an indicator of our operating performance, gross margin should not be considered an alternative to, or more meaningful than, net income or cash flow from operations as determined in accordance with GAAP. Our gross margin may not be comparable to a similarly titled measure of another company because other entities may not calculate gross margin in the same manner. (b) Other assets not allocable to segments consist of investment in unconsolidated affiliates, corporate leasehold improvements, and other assets. |