Segments

Financial Information

We have three operating and reportable segments: (i) gathering and processing operations; (ii) storage and transportation operations; and (iii) marketing, supply and logistics operations. Our corporate operations include all general and administrative expenses that are not allocated to our reportable segments. We assess the performance of our operating segments based on EBITDA, which is defined as income before income taxes, plus debt-related costs (interest and debt expense, net and gain (loss) on modification/extinguishment of debt) and depreciation, amortization and accretion expense.

Below is a reconciliation of CEQP's net income (loss) to EBITDA (in millions):



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2017			2016		2017			2016
Net income (loss)	$	(27.9	)	$	3.0	$	(47.0	)	$	(127.8	)
Add:
Interest and debt expense, net	24.2			27.5		74.8			97.9
(Gain) loss on modification/extinguishment of debt	—			—		37.7			(10.0		)
Provision for income taxes	0.1			0.2		—			0.2
Depreciation, amortization and accretion	48.1			50.3		145.2			177.0
EBITDA	$	44.5		$	81.0	$	210.7		$	137.3

The following tables summarize CEQP's reportable segment data for the three and nine months ended September 30, 2017 and 2016 (in millions). Intersegment revenues included in the following tables are accounted for as arms-length transactions that apply our revenue recognition policies described in our 2016 Annual Report on Form 10-K. Included in earnings from unconsolidated affiliates, net below was approximately $10.0 million and $8.3 million of depreciation and amortization expense and gains (losses) on long-lived assets, net related to our equity investments for the three months ended September 30, 2017 and 2016 and $25.7 million and $15.3 million for the nine months ended September 30, 2017 and 2016.



	Three Months Ended September 30, 2017
	Gathering and Processing			Storage and Transportation		Marketing, Supply and Logistics			Corporate			Total
Revenues	$	434.4		$	6.2	$	515.0		$	—		$	955.6
Intersegment revenues	29.9			1.2		(31.1		)	—			—
Costs of product/services sold	378.6			0.2		479.7			—			858.5
Operations and maintenance expense	16.2			1.0		18.3			—			35.5
General and administrative expense	—			—		—			22.5			22.5
Gain (loss) on long-lived assets	(3.9		)	—		0.6			(3.0		)	(6.3		)
Earnings from unconsolidated affiliates, net	4.3			7.2		—			—			11.5
Other income, net	—			—		—			0.2			0.2
EBITDA	$	69.9		$	13.4	$	(13.5	)	$	(25.3	)	$	44.5
Goodwill	$	45.9		$	—	$	153.1		$	—		$	199.0
Total assets	$	2,452.2		$	1,049.9	$	1,002.3		$	20.9		$	4,525.3



	Three Months Ended September 30, 2016
	Gathering and Processing			Storage and Transportation			Marketing, Supply and Logistics			Corporate			Total
Revenues	$	279.3		$	18.3		$	290.0		$	—		$	587.6
Intersegment revenues	24.8			1.5			(26.3		)	—			—
Costs of product/services sold	226.1			0.1			240.5			—			466.7
Operations and maintenance expense	17.4			2.5			13.2			—			33.1
General and administrative expense	—			—			—			18.3			18.3
Loss on long-lived assets	(2.0		)	(0.1		)	—			—			(2.1		)
Earnings from unconsolidated affiliates, net	5.5			7.9			—			—			13.4
Other income, net	—			—			—			0.2			0.2
EBITDA	$	64.1		$	25.0		$	10.0		$	(18.1	)	$	81.0



	Nine Months Ended September 30, 2017
	Gathering and Processing			Storage and Transportation		Marketing, Supply and Logistics			Corporate			Total
Revenues	$	1,208.1		$	24.7	$	1,401.2		$	—		$	2,634.0
Intersegment revenues	94.3			4.7		(99.0		)	—			—
Costs of product/services sold	1,049.9			0.3		1,221.4			—			2,271.6
Operations and maintenance expense	51.8			3.4		48.2			—			103.4
General and administrative expense	—			—		—			71.6			71.6
Gain (loss) on long-lived assets	(3.9		)	—		0.6			(3.0		)	(6.3		)
Earnings from unconsolidated affiliates, net	7.7			21.5		—			—			29.2
Other income, net	—			—		—			0.4			0.4
EBITDA	$	204.5		$	47.2	$	33.2		$	(74.2	)	$	210.7
Goodwill	$	45.9		$	—	$	153.1		$	—		$	199.0
Total assets	$	2,452.2		$	1,049.9	$	1,002.3		$	20.9		$	4,525.3



	Nine Months Ended September 30, 2016
	Gathering and Processing			Storage and Transportation			Marketing, Supply and Logistics			Corporate			Total
Revenues	$	787.7		$	131.5		$	806.3		$	—		$	1,725.5
Intersegment revenues	75.9			3.0			(78.9		)	—			—
Costs of product/services sold	632.2			4.9			643.0			—			1,280.1
Operations and maintenance expense	56.1			18.2			45.6			—			119.9
General and administrative expense	—			—			—			70.2			70.2
Loss on long-lived assets	(2.0		)	(32.8		)	—			—			(34.8		)
Goodwill impairment	(8.6		)	(13.7		)	(87.4		)	—			(109.7		)
Earnings from unconsolidated affiliates, net	16.5			9.6			—			—			26.1
Other income, net	—			—			—			0.4			0.4
EBITDA	$	181.2		$	74.5		$	(48.6	)	$	(69.8	)	$	137.3

Below is a reconciliation of CMLP's net income (loss) to EBITDA (in millions):



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2017			2016		2017			2016
Net income (loss)	$	(29.8	)	$	0.6	$	(53.1	)	$	(130.3	)
Add:
Interest and debt expense, net	24.2			27.5		74.8			97.9
(Gain) loss on modification/extinguishment of debt	—			—		37.7			(10.0		)
Provision for income taxes	0.1			—		—			—
Depreciation, amortization and accretion	50.9			53.2		153.5			185.2
EBITDA	$	45.4		$	81.3	$	212.9		$	142.8

The following tables summarize CMLP's reportable segment data for the three and nine months ended September 30, 2017 and 2016 (in millions). Intersegment revenues included in the following tables are accounted for as arms-length transactions that apply our revenue recognition policies described in our 2016 Annual Report on Form 10-K. Included in earnings from unconsolidated affiliates, net below was approximately $10.0 million and $8.3 million of depreciation and amortization expense and gains (losses) on long-lived assets, net related to our equity investments for the three months ended September 30, 2017 and 2016 and $25.7 million and $15.3 million for the nine months ended September 30, 2017 and 2016.



	Three Months Ended September 30, 2017
	Gathering and Processing			Storage and Transportation		Marketing, Supply and Logistics			Corporate			Total
Revenues	$	434.4		$	6.2	$	515.0		$	—		$	955.6
Intersegment revenues	29.9			1.2		(31.1		)	—			—
Costs of product/services sold	378.6			0.2		479.7			—			858.5
Operations and maintenance expense	16.2			1.0		18.3			—			35.5
General and administrative expense	—			—		—			21.4			21.4
Gain (loss) on long-lived assets	(3.9		)	—		0.6			(3.0		)	(6.3		)
Earnings from unconsolidated affiliates, net	4.3			7.2		—			—			11.5
EBITDA	$	69.9		$	13.4	$	(13.5	)	$	(24.4	)	$	45.4
Goodwill	$	45.9		$	—	$	153.1		$	—		$	199.0
Total assets	$	2,643.7		$	1,049.9	$	1,002.3		$	13.1		$	4,709.0



	Three Months Ended September 30, 2016
	Gathering and Processing			Storage and Transportation			Marketing, Supply and Logistics			Corporate			Total
Revenues	$	279.3		$	18.3		$	290.0		$	—		$	587.6
Intersegment revenues	24.8			1.5			(26.3		)	—			—
Costs of product/services sold	226.1			0.1			240.5			—			466.7
Operations and maintenance expense	17.4			3.0			13.2			—			33.6
General and administrative expense	—			—			—			17.3			17.3
Loss on long-lived assets	(2.0		)	(0.1		)	—			—			(2.1		)
Earnings from unconsolidated affiliates, net	5.5			7.9			—			—			13.4
EBITDA	$	64.1		$	24.5		$	10.0		$	(17.3	)	$	81.3



	Nine Months Ended September 30, 2017
	Gathering and Processing			Storage and Transportation		Marketing, Supply and Logistics			Corporate			Total
Revenues	$	1,208.1		$	24.7	$	1,401.2		$	—		$	2,634.0
Intersegment revenues	94.3			4.7		(99.0		)	—			—
Costs of product/services sold	1,049.9			0.3		1,221.4			—			2,271.6
Operations and maintenance expense	51.8			3.4		48.2			—			103.4
General and administrative expense	—			—		—			69.0			69.0
Gain (loss) on long-lived assets	(3.9		)	—		0.6			(3.0		)	(6.3		)
Earnings from unconsolidated affiliates, net	7.7			21.5		—			—			29.2
EBITDA	$	204.5		$	47.2	$	33.2		$	(72.0	)	$	212.9
Goodwill	$	45.9		$	—	$	153.1		$	—		$	199.0
Total assets	$	2,643.7		$	1,049.9	$	1,002.3		$	13.1		$	4,709.0



	Nine Months Ended September 30, 2016
	Gathering and Processing			Storage and Transportation			Marketing, Supply and Logistics			Corporate			Total
Revenues	$	787.7		$	131.5		$	806.3		$	—		$	1,725.5
Intersegment revenues	75.9			3.0			(78.9		)	—			—
Costs of product/services sold	632.2			4.9			643.0			—			1,280.1
Operations and maintenance expense	56.1			15.0			45.6			—			116.7
General and administrative expense	—			—			—			67.5			67.5
Loss on long-lived assets	(2.0		)	(32.8		)	—			—			(34.8		)
Goodwill impairment	(8.6		)	(13.7		)	(87.4		)	—			(109.7		)
Earnings from unconsolidated affiliates, net	16.5			9.6			—			—			26.1
EBITDA	$	181.2		$	77.7		$	(48.6	)	$	(67.5	)	$	142.8