Southcross Energy Partners 8-K Other Events

EXHIBIT 99.3

Item 6. Selected Financial Data

The information in this section should be read in conjunction with Part II, Item 7 and Item 8 of this report. The preparation of our consolidated financial statements requires us to make a number of significant judgments and estimates, as well as consider a number of uncertainties (in thousands, except per unit data and volume data).

	Year Ended December 31,
	2014(1)(2)			2013(1)			2012(1)			2011(1)			2010(1)
Statements of operations data:
Revenues	$	848,513		$	634,722		$	496,129		$	523,149		$	498,747
(Loss) income from operations	(13,228		)	(3,020		)	3,289			16,388			19,733
Net loss	(37,731		)	(15,970		)	(4,488		)	—			—
Series A Preferred fair value adjustment	(4,596		)	(1,670		)	—			—			—
Net loss from January 1, 2012 through November 6, 2012	—			—			260			—			—
Net loss attributable to Holdings	(6,409		)	—			—			—			—
Net loss attributable to partners	(36,659		)	(17,640		)	(4,228		)	—			—
General partner's interest	(693		)	(319		)	(85		)	—			—
Limited partners' interest	(35,966		)	(17,321		)	(4,143		)	—			—
Net (loss) income from Southcross Energy LLC							(260		)	7,539			9,719
Less deemed dividend on:
Redeemable preferred units	—			—			(2,693		)	(1,553		)	—
Series B redeemable preferred units	—			—			(4,696		)	—			—
Series C redeemable preferred units	—			—			(2,012		)	—			—
Preferred units	—			—			(13,249		)	(14,131		)	(12,802		)
Net loss attributable to Southcross Energy LLC common unitholders	—			—			(22,910		)	(8,145		)	(3,083		)
Basic and diluted earnings per unit
Net loss allocated to limited partner common units (from November 7, 2012)	(20,175		)	(8,683		)	(2,072		)	—			—
Weighted average number of limited partner common units outstanding	21,641,635			12,224,997			12,213,713			—			—
Loss per common unit	(0.93		)	(0.71		)	(0.17		)	—			—
Net loss allocated to Southcross Energy LLC common units	—			—			(22,910		)	(8,145		)	(3,083		)
Weighted average number of Southcross Energy LLC common units outstanding	—			—			1,198,429			1,197,876			1,197,257
Loss per Southcross Energy LLC common unit(3)	—			—			(19.12		)	(6.79		)	(2.57		)
Performance measures:
Distributions declared per common unit(4)	1.60			1.60			0.24			n/a			n/a
Other financial data:
Adjusted EBITDA(5)	51,938			34,486			24,019			28,957			30,869
Gross operating margin(5)	127,381			93,546			71,640			62,569			59,316
Maintenance capital expenditures	5,777			3,353			5,193			5,317			3,402
Growth capital expenditures	162,840			90,510			164,623			150,669			1,843
Operating data:
Average throughput volumes of natural gas (MMBtu/d)(6)	911,156			622,238			570,599			506,975			471,265
Average volume of processed gas (MMBtu/d)	353,456			240,825			206,045			155,475			153,557
Average volume of NGLs fractionated (Bbls/d)	17,815			12,545			9,385			5,131			5,557
Realized prices on natural gas volumes sold/Btu ($/MMBtu)	4.40			3.75			2.83			4.05			4.42
Realized prices on NGL volumes sold/gal ($/gal)	0.78			0.88			0.87			1.35			1.10
Balance sheet data (at period end):
Cash and cash equivalents	1,649			3,349			7,490			1,412			20,323
Trade accounts receivable	74,086			57,669			50,994			41,234			35,059
Property, plant, and equipment, net	1,058,570			575,795			550,603			369,861			229,309
Total assets	1,316,314			652,315			618,605			420,385			289,643
Total debt (current and long term)	475,629			267,300			191,000			208,280			115,000
Capital leases	1,033			908			—			—			—
Series A convertible preferred unit in-kind distribution and fair value adjustment	—			40,504			—			—			—

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(1) Reflects financial data of Southcross Energy Partners, L.P. subsequent to our IPO on November 7, 2012, and Southcross Energy LLC for periods ending prior to November 7, 2012.

(2) Due to the common control aspects in the 2015 Holdings Acquisition, the 2015 Holdings Acquisition was deemed a transaction between entities under common control and, as such, was accounted for on an “as if pooled” basis for all periods which common control existed (which began on August 4, 2014). The Partnership’s financial results retrospectively include the financial results of the Valley Wells System and the Compression Assets for all periods ending after August 4, 2014, the date of the Holdings Transaction. See Note 3 to our consolidated financial statements for further details. We calculate historical earnings per unit with retrospective earnings or losses of a transferred business before the date of the 2015 Holdings Acquisition allocated entirely to the Holdings. The previously reported earnings per unit of the limited partners did not change as a result of the 2015 Holdings Acquisition. See Note 5 to our consolidated financial statements for further details.

(3) Earnings per unit of Southcross Energy LLC prior to our IPO.

(4) A distribution of $0.24 attributable to fourth quarter 2012 is the first distribution declared by us and corresponds to the minimum quarterly distribution of $0.40 per unit, or $1.60 on an annualized basis, pro-rated for the portion of the quarter following the closing of our IPO on November 7, 2012.

(5) See Part II, Item 7 of this report for definition of Non-GAAP financial metrics and reconciliation of such metrics to their most directly comparable GAAP financial measure.

(6) Average throughput volumes of natural gas per day include sales, transportation, fuel and shrink volumes for all periods presented. Historical average throughput volumes of natural gas per day presented previously included sales and transportation volume only.

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