Reportable Segments | Reportable Segments Our operations are located in the United States and are organized into the following reportable segments: Gas Gathering and Processing Services, Liquid Pipelines and Services, Natural Gas Transportation Services, Offshore Pipeline and Services, Terminalling Services, and Propane Marketing Services. These segments, are described below, have been identified based on the differing products and services, regulatory environments and the expertise required for these operations. Gas Gathering and Processing Services provides “wellhead-to-market” services to producers of natural gas and crude oil, which include transporting raw natural gas and crude oil from various receipt points 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. Liquid Pipelines and Services provides transportation, purchase and sales of crude oil from various receipt points including lease automatic custody transfer ("LACT") facilities and delivering to various markets. Natural Gas Transportation Services transports and delivers natural gas from producing wells, receipt points or pipeline interconnects for shippers and other customers, which include local distribution companies (“LDCs”), utilities and industrial, commercial and power generation customers. Offshore Pipelines and Services gathers and transports natural gas from various receipt points to other pipeline interconnects, onshore facilities and other delivery points. Terminalling Services provides above-ground leasable storage operations at our marine terminals that support various commercial customers, including commodity brokers, refiners and chemical manufacturers to store a range of products and also includes crude oil storage in Cushing, OK and refined products terminals in Texas and Arkansas. Propane Marketing Services gathers, transports and sells natural gas liquids (NGLs). This is accomplished through cylinder tank exchange, sales through retail, commercial and wholesale distribution and through a fleet of trucks operating in the Eagle Ford and Permian basin areas. Our Chief Executive Officer serves as our Chief Operating Decision Maker and evaluates the performance of our reportable segments primarily on the basis of segment gross margin, which is our segment measure of profitability. We define segment gross margin for each segment as summarized below: Gas Gathering and Processing Services - total revenue plus unconsolidated affiliate earnings less unrealized gains (losses) on commodity derivatives, construction and operating management agreement income and the cost of sales. Liquid Pipelines and Services - total revenue plus unconsolidated affiliate earnings less unrealized gains (losses) on commodity derivatives and the cost of sales. Substantially all of our gross margin in this segment is fee-based or fixed-margin, with little to no direct commodity price risk. Natural Gas Transportation Services - total revenue plus unconsolidated affiliate earnings less the cost of sales. Substantially all of our gross margin in this segment is fee-based or fixed-margin, with little to no direct commodity price risk. Offshore Pipelines and Services - total revenue plus unconsolidated affiliate earnings less the cost of sales. Substantially all of our gross margin in this segment is fee-based or fixed-margin, with little to no direct commodity price risk. Terminalling Services - total revenue less direct operating expense which includes direct labor, general materials and supplies and direct overhead. Propane Marketing Services - total revenue less cost of sales excluding non-cash charges such as non-cash unrealized gain (losses) on commodity derivatives. The following tables set forth our segment financial information for the periods indicated: December 31, 2016 Gas Gathering and Processing Services Liquid Pipelines and Services Natural Gas Transportation Services Offshore Pipelines and Services Terminalling Services Propane Marketing Services Total (in thousands) Commodity sales $ 91,444 $ 304,501 $ 21,999 $ 6,812 $ 14,655 $ 129,116 $ 568,527 Services 22,558 12,146 18,109 40,502 50,999 14,536 158,850 Gains (losses) on commodity derivatives, net (833 ) (341 ) — (7 ) (436 ) 1,162 (455 ) Total Revenue 113,169 316,306 40,108 47,307 65,218 144,814 726,922 Cost of sales 63,832 288,496 21,288 3,049 11,564 54,794 443,023 Direct operating expenses 33,802 8,383 5,923 10,945 10,783 53,536 123,372 Corporate expenses 99,430 Depreciation, amortization, and accretion 106,818 Loss on sale of assets, net 2,870 Loss on impairment of plant, property and equipment 697 Loss on impairment of goodwill 15,456 Interest expense 21,469 Earnings in unconsolidated affiliates (40,158 ) Other (income) expense (628 ) Income tax expense 2,578 Income (loss) from continuing operations (48,005 ) Loss from discontinuing operations, net of tax (539 ) Net income (loss) (48,544 ) Net income (loss) attributable to non-controlling interest 2,766 Net income (loss) attributable to partnership $ (51,310 ) Segment gross margin $ 48,245 $ 29,760 $ 18,616 $ 82,346 $ 42,872 $ 88,948 December 31, 2015 Gas Gathering and Processing Services Liquid Pipelines and Services Natural Gas Transportation Services Offshore Pipelines and Services Terminalling Services Propane Marketing Services Total (in thousands) Commodity sales $ 107,680 $ 457,390 $ 23,972 $ 13,798 $ 10,343 $ 159,674 $ 772,857 Services 30,196 12,895 16,035 21,457 45,022 17,157 142,762 Gains (losses) on commodity derivatives, net 1,240 — — 84 21 (3,077 ) (1,732 ) Total Revenue 139,116 470,285 40,007 35,339 55,386 173,754 913,887 Cost of sales 72,960 446,125 21,858 9,914 8,893 70,553 630,303 Direct operating expenses 35,250 8,310 6,728 9,425 10,414 57,353 127,480 Corporate expenses 77,835 Depreciation, amortization, and accretion 98,596 Loss on sale of assets, net 3,920 Loss on impairment of goodwill 148,488 Interest expense 20,120 Earnings in unconsolidated affiliates (8,201 ) Other (income) expense (1,732 ) Income tax expense 1,888 Income (loss) from continuing operations (184,810 ) Loss from discontinuing operations, net of tax (15,031 ) Net income (loss) (199,841 ) Net income (loss) attributable to non-controlling interest (13 ) Net income (loss) attributable to partnership $ (199,828 ) Segment gross margin $ 65,692 $ 24,160 $ 18,073 $ 33,613 $ 36,079 $ 91,437 December 31, 2014 Gas Gathering and Processing Services Liquid Pipelines and Services Natural Gas Transportation Services Offshore Pipelines and Services Terminalling Services Propane Marketing Services Total (in thousands) Commodity sales $ 148,198 $ 470,336 $ 70,964 $ 20,044 $ 11,521 $ 188,702 $ 909,765 Services 15,248 11,548 12,925 24,426 41,357 18,194 123,698 Gains (losses) on commodity derivatives, net 1,050 — — 41 — (13,762 ) (12,671 ) Total Revenue 164,496 481,884 83,889 44,511 52,878 193,134 1,020,792 Cost of dales 112,719 459,319 70,100 15,133 6,859 125,742 789,872 Direct operating expenses 21,197 5,819 6,975 11,142 11,525 52,885 109,543 Corporate expenses 72,744 Depreciation, amortization, and accretion 72,527 Loss on sale of assets, net 5,080 Loss on impairment of plant, property and equipment 21,344 Interest expense 16,558 Earnings in unconsolidated affiliates (348 ) Other (income) expense 662 Loss on extinguishment of debt 1,634 Income tax expense 857 Income (loss) from continuing operations (69,681 ) Loss from discontinuing operations, net of tax (9,886 ) Net income (loss) (79,567 ) Net income (loss) attributable to non-controlling interest 3,993 Net income (loss) attributable to partnership $ (83,560 ) Segment gross margin $ 51,213 $ 22,564 $ 13,691 $ 29,089 $ 34,493 $ 80,083 A reconciliation of total assets by segment to the amounts included in the consolidated balance sheets is as follows: December 31, 2016 2015 Segment assets: (in thousands) Gas Gathering and Processing Services $ 530,889 $ 496,014 Liquid Pipelines and Services 422,636 426,854 Natural Gas Transportation Services 221,604 146,927 Offshore Pipelines and Services 400,193 190,271 Terminalling Services 299,534 291,130 Propane Marketing Services 140,864 173,558 Other (1) 333,601 27,135 Total assets $ 2,349,321 $ 1,751,889 _______________________ (1) Other assets not allocable to segments consist of investment in unconsolidated affiliates, restricted cash and other assets. |