Reporting Segments | Our operations are located in the United States. We are organized into three reporting segments: (1) Crude Oil Transportation & Logistics, (2) Natural Gas Transportation & Logistics, and (3) Processing & Logistics. Crude Oil Transportation & Logistics The Crude Oil Transportation & Logistics segment is engaged in the ownership and operation of the Pony Express System, which is a FERC-regulated crude oil pipeline serving the Bakken Shale, Denver-Julesburg and Powder River Basins, 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 the second quarter of 2015. Natural Gas Transportation & Logistics The Natural Gas Transportation & Logistics segment is engaged in the 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. The Natural Gas Transportation & Logistics segment includes our 25% membership interest in Rockies Express effective May 6, 2016, as discussed in Note 3 – Acquisitions . Processing & Logistics The Processing & Logistics segment is engaged in the 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 and the transportation of NGLs. 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 our revolving credit facility, public company costs, 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, 2016 Three Months Ended September 30, 2015 Revenue: Total Inter- External Total Inter- External (in thousands) Crude Oil Transportation & Logistics $ 95,826 $ — $ 95,826 $ 83,272 $ — $ 83,272 Natural Gas Transportation & Logistics 33,812 (1,427 ) 32,385 33,636 (1,346 ) 32,290 Processing & Logistics 23,914 — 23,914 22,606 — 22,606 Corporate and Other — — — — — — Total Revenue $ 153,552 $ (1,427 ) $ 152,125 $ 139,514 $ (1,346 ) $ 138,168 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Revenue: Total Inter- External Total Inter- External (in thousands) Crude Oil Transportation & Logistics $ 283,868 $ — $ 283,868 $ 208,872 $ — $ 208,872 Natural Gas Transportation & Logistics 94,949 (4,192 ) 90,757 98,215 (4,036 ) 94,179 Processing & Logistics 69,836 — 69,836 82,762 — 82,762 Corporate and Other — — — — — — Total Revenue $ 448,653 $ (4,192 ) $ 444,461 $ 389,849 $ (4,036 ) $ 385,813 Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Adjusted EBITDA: Total Inter- External Total Inter- External (in thousands) Crude Oil Transportation & Logistics $ 65,431 $ 1,346 $ 66,777 $ 47,526 $ 1,346 $ 48,872 Natural Gas Transportation & Logistics 41,253 (1,427 ) 39,826 15,983 (1,346 ) 14,637 Processing & Logistics 3,210 81 3,291 3,046 — 3,046 Corporate and Other (1,368 ) — (1,368 ) (703 ) — (703 ) Reconciliation to Net Income: Add: Equity in earnings of unconsolidated investment 12,066 — Less: Interest expense, net of noncontrolling interest (10,907 ) (3,872 ) Depreciation and amortization expense, net of noncontrolling interest (21,102 ) (18,826 ) Distributions from unconsolidated investment (21,804 ) — Non-cash (loss) gain related to derivative instruments, net of noncontrolling interest (4,410 ) 259 Non-cash compensation expense (1,635 ) (734 ) Net income attributable to partners $ 60,734 $ 42,679 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Adjusted EBITDA: Total Inter- External Total Inter- External (in thousands) Crude Oil Transportation & Logistics $ 195,732 $ 4,037 $ 199,769 $ 119,352 $ 4,036 $ 123,388 Natural Gas Transportation & Logistics 104,168 (4,192 ) 99,976 51,820 (4,036 ) 47,784 Processing & Logistics 10,110 155 10,265 18,841 — 18,841 Corporate and Other (3,809 ) — (3,809 ) (2,374 ) — (2,374 ) Reconciliation to Net Income: Add: Equity in earnings of unconsolidated investment 35,387 — Non-cash loss allocated to noncontrolling interest — 9,377 Less: Interest expense, net of noncontrolling interest (27,639 ) (11,205 ) Depreciation and amortization expense, net of noncontrolling interest (64,909 ) (57,661 ) Distributions from unconsolidated investment (51,460 ) — Non-cash gain related to derivative instruments, net of noncontrolling interest 5,391 218 Non-cash compensation expense (4,270 ) (3,988 ) Non-cash loss from asset sales (1,849 ) (4,483 ) Net income attributable to partners $ 196,852 $ 119,897 Nine Months Ended September 30, Capital Expenditures: 2016 2015 (in thousands) Crude Oil Transportation & Logistics $ 25,985 $ 40,579 Natural Gas Transportation & Logistics 11,146 10,858 Processing & Logistics 8,121 13,709 Corporate and Other — — Total capital expenditures $ 45,252 $ 65,146 Assets: September 30, 2016 December 31, 2015 (in thousands) Crude Oil Transportation & Logistics $ 1,417,241 $ 1,439,418 Natural Gas Transportation & Logistics 1,155,372 706,576 Processing & Logistics 405,760 409,795 Corporate and Other 31,915 6,285 Total assets $ 3,010,288 $ 2,562,074 |