Reporting Segments | Our operations are located in the United States. We are organized into three reporting segments: (1) Natural Gas Transportation & Logistics, (2) Crude Oil Transportation & Logistics, and (3) Processing & Logistics. Natural Gas Transportation & Logistics The Natural Gas Transportation & Logistics segment is engaged in ownership and operation of FERC-regulated interstate natural gas pipelines and integrated natural gas storage facilities that provide services to on-system customers (such as third-party LDCs), industrial users and other shippers. As discussed in Note 2 – Summary of Significant Accounting Policies , results for prior periods have been recast to reflect the operations of Trailblazer. Crude Oil Transportation & Logistics The Crude Oil Transportation & Logistics segment is engaged in ownership, construction, and operation of the Pony Express System, which is a FERC-regulated crude oil pipeline serving the Bakken Shale and other nearby oil producing basins. The mainline portion of the Pony Express System was placed in service in October 2014. The Pony Express System also includes a lateral pipeline in Northeast Colorado, which interconnects with the Pony Express System just east of Sterling, Colorado and was placed in service in April 2015. As discussed in Note 2 – Summary of Significant Accounting Policies , results for prior periods have been recast to reflect the operations of Pony Express. Processing & Logistics The Processing & Logistics segment is engaged in ownership and operation of natural gas processing, treating and fractionation facilities that produce NGLs and residue gas that is sold in local wholesale markets or delivered into pipelines for transportation to additional end markets, as well as water business services provided primarily to the oil and gas exploration and production industry. Corporate and Other Corporate and Other includes corporate overhead costs that are not directly associated with the operations of our reportable segments, such as interest and fees associated with TEP’s revolving credit facility, public company costs reimbursed to TD, and equity-based compensation expense. These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for their respective operations. We consider Adjusted EBITDA our primary segment performance measure as we believe it is the most meaningful measure to assess our financial condition and results of operations as a public entity. We define Adjusted EBITDA, a non-GAAP measure, as net income excluding the impact of interest, income taxes, depreciation and amortization, non-cash income or loss related to derivative instruments, non-cash long-term compensation expense, impairment losses, gains or losses on asset or business disposals or acquisitions, gains or losses on the repurchase, redemption or early retirement of debt, and earnings from unconsolidated investments, but including the impact of distributions from unconsolidated investments. The following tables set forth our segment information for the periods indicated: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Revenue: Total Inter- External Total Inter- External (in thousands) (in thousands) Natural Gas Transportation & Logistics $ 33,636 $ (1,346 ) $ 32,290 $ 33,520 $ (1,430 ) $ 32,090 Crude Oil Transportation & Logistics 83,272 — 83,272 — — — Processing & Logistics 22,606 — 22,606 57,863 — 57,863 Total Revenue $ 139,514 $ (1,346 ) $ 138,168 $ 91,383 $ (1,430 ) $ 89,953 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Revenue: Total Inter- External Total Inter- External (in thousands) (in thousands) Natural Gas Transportation & Logistics $ 98,215 $ (4,036 ) $ 94,179 $ 107,091 $ (4,015 ) $ 103,076 Crude Oil Transportation & Logistics 208,872 — 208,872 — — — Processing & Logistics 82,762 — 82,762 158,976 — 158,976 Total Revenue $ 389,849 $ (4,036 ) $ 385,813 $ 266,067 $ (4,015 ) $ 262,052 Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Adjusted EBITDA: Total Inter- External Total Inter- External (in thousands) (in thousands) Natural Gas Transportation & Logistics $ 15,983 $ (1,346 ) $ 14,637 $ 17,152 $ (1,430 ) $ 15,722 Crude Oil Transportation & Logistics 47,526 1,346 48,872 (22 ) — (22 ) Processing & Logistics 3,046 — 3,046 8,615 — 8,615 Corporate and Other (703 ) — (703 ) (625 ) — (625 ) Reconciliation to Net Income: Less: Interest expense, net of noncontrolling interest (3,872 ) (1,414 ) Depreciation and amortization expense, net of noncontrolling interest (18,826 ) (9,568 ) Non-cash gain related to derivative instruments 259 395 Non-cash compensation expense (734 ) (1,475 ) Distributions from unconsolidated investment — (184 ) Net income attributable to partners $ 42,679 $ 11,444 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Adjusted EBITDA: Total Inter- External Total Inter- External (in thousands) (in thousands) Natural Gas Transportation & Logistics $ 51,820 $ (4,036 ) $ 47,784 $ 52,080 $ (4,015 ) $ 48,065 Crude Oil Transportation & Logistics 119,352 4,036 123,388 (22 ) — (22 ) Processing & Logistics 18,841 — 18,841 23,722 — 23,722 Corporate and Other (2,374 ) — (2,374 ) (1,875 ) — (1,875 ) Reconciliation to Net Income: Add: Equity in earnings of unconsolidated investment — 717 Non-cash loss allocated to noncontrolling interest 9,377 — Gain on remeasurement of unconsolidated investment — 9,388 Less: Interest expense, net of noncontrolling interest (11,205 ) (4,848 ) Depreciation and amortization expense, net of noncontrolling interest (57,661 ) (26,246 ) Non-cash gain related to derivative instruments 218 140 Non-cash compensation expense (3,988 ) (3,724 ) Non-cash loss from asset sales (4,483 ) — Distributions from unconsolidated investment — (1,464 ) Net income attributable to partners $ 119,897 $ 43,853 Nine Months Ended September 30, Capital Expenditures: 2015 2014 (in thousands) Natural Gas Transportation & Logistics $ 10,858 $ 16,616 Crude Oil Transportation & Logistics 40,579 617,687 Processing & Logistics 13,709 7,913 Total capital expenditures $ 65,146 $ 642,216 Assets: September 30, 2015 December 31, 2014 (in thousands) Natural Gas Transportation & Logistics $ 713,754 $ 716,106 Crude Oil Transportation & Logistics 1,444,231 1,394,793 Processing & Logistics 337,522 340,620 Corporate and Other 5,770 5,678 Total assets $ 2,501,277 $ 2,457,197 |