Segment Information

9 Months Ended

Sep. 30, 2011

Segmentreportingdisclosuresabstract [Abstract]

Segment Information

(11) Segment Information

Identification of operating segments is based principally upon regions served. The Partnership's reportable segments consist of the natural gas gathering, processing and transmission operations located in north Texas and in the Permian Basin in west Texas (NTX), the pipelines and processing plants located in Louisiana (LIG) and the south Louisiana processing and NGL assets (PNGL). Operating activity for assets sold in the comparative periods that was not considered discontinued operations as well as intersegmenteliminations is shown in the corporate segment.

The Partnership evaluates the performance of its operating segments based on operating revenues and segment profits. Corporate expenses include general partnership expenses associated with managing all reportable operating segments and the Company's general and administrative expenses, including the Partnership's general and administrative expenses. Corporate assets consist primarily of property and equipment, including software, for general corporate support, working capital, debt financing costs, and the investment in HEP.

Summarized financial information concerning the Partnership's reportable segments as consolidated into the Company's condensed financial statements is shown in the following table.

			LIG		NTX		PNGL		Corporate		Totals
			(In thousands)
Three Months Ended September 30, 2011:
	Sales to external customers		$	200,161	$	83,684	$	233,653	$	-	$	517,498
	Sales to affiliates			22,059		26,755		82		(48,896)		-
	Purchased gas and NGLs			(189,393)		(67,041)		(219,001)		48,896		(426,539)
	Operating expenses			(8,944)		(11,957)		(7,225)		-		(28,126)
	Segment profit		$	23,883	$	31,441	$	7,509	$	-	$	62,833
	Gain (loss) on derivatives		$	(509)	$	(225)	$	171	$	-	$	(563)
	Depreciation, amortization
		and impairments	$	(3,216)	$	(19,861)	$	(7,859)	$	(994)	$	(31,930)
	Capital expenditures		$	58	$	8,205	$	3,362	$	660	$	12,285
	Identifiable assets		$	304,906	$	1,092,754	$	475,580	$	77,529	$	1,950,769
Three Months Ended September 30, 2010:
	Sales to external customers		$	232,220	$	85,510	$	137,005	$	-	$	454,735
	Sales to affiliates			18,228		20,516		-		(38,744)		-
	Purchased gas and NGLs			(221,624)		(66,207)		(121,985)		38,744		(371,072)
	Operating expenses			(7,877)		(11,525)		(7,074)		-		(26,476)
	Segment profit		$	20,947	$	28,294	$	7,946	$	-	$	57,187
	Gain (loss) on derivatives		$	(1,561)	$	(70)	$	49	$	-	$	(1,582)
	Depreciation, amortization and
		impairments	$	(3,132)	$	(15,896)	$	(8,058)	$	(1,117)	$	(28,203)
	Capital expenditures		$	3,006	$	14,635	$	1,389	$	810	$	19,840
	Identifiable assets		$	328,499	$	1,111,274	$	473,668	$	56,984	$	1,970,425
Nine Months Ended September 30, 2011:
	Sales to external customers		$	624,558	$	252,462	$	655,983	$	-	$	1,533,003
	Sales to affiliates			68,110		69,635		773		(138,518)		-
	Purchased gas and NGLs			(596,313)		(194,560)		(603,295)		138,518		(1,255,650)
	Operating expenses			(25,912)		(35,417)		(19,754)		-		(81,083)
	Segment profit		$	70,443	$	92,120	$	33,707	$	-	$	196,270
	Gain (loss) on derivatives		$	(4,463)	$	(1,319)	$	262	$	-	$	(5,520)
	Depreciation, amortization
		and impairments	$	(10,423)	$	(56,325)	$	(23,400)	$	(3,109)	$	(93,257)
	Capital expenditures		$	2,738	$	43,216	$	12,998	$	1,862	$	60,814
	Identifiable assets		$	304,906	$	1,092,754	$	475,580	$	77,529	$	1,950,769
Nine Months Ended September 30, 2010:
	Sales to external customers		$	677,750	$	236,517	$	451,174	$	-	$	1,365,441
	Sales to affiliates			62,201		66,106		6		(128,313)		-
	Purchased gas and NGLs			(653,515)		(184,370)		(407,001)		128,313		(1,116,573)
	Operating expenses			(24,140)		(34,793)		(19,432)		-		(78,365)
	Segment profit		$	62,296	$	83,460	$	24,747	$	-	$	170,503
	Gain (loss) on derivatives		$	(2,465)	$	(4,577)	$	170	$	-	$	(6,872)
	Depreciation, amortization
		and impairments	$	(9,242)	$	(47,000)	$	(23,886)	$	(3,336)	$	(83,464)
	Capital expenditures		$	8,908	$	20,015	$	2,309	$	1,491	$	32,723
	Identifiable assets		$	328,499	$	1,111,274	$	473,668	$	56,984	$	1,970,425

	The following table reconciles the segment profits reported above to the operating income as reported in the condensed
consolidated statements of operations (in thousands):
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Segment profits		$	62,833	$	57,187	$	196,270	$	170,503
General and administrative expenses			(14,331)		(11,964)		(40,084)		(37,900)
Loss on derivatives			(563)		(1,582)		(5,520)		(6,872)
Gain (loss) on sale of property			(397)		588		(317)		14,367
Depreciation, amortization and impairments			(31,930)		(28,203)		(93,257)		(83,464)
Operating income		$	15,612	$	16,026	$	57,092	$	56,634