Segment Information

3 Months Ended

Mar. 31, 2012

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's sales are derived from external domestic customers.

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 March 31, 2012:
	Sales to external customers		$	146,697	$	64,681	$	160,331	$	-	$	371,709
	Sales to affiliates			72,810		31,484		45,545		(149,839)		-
	Purchased gas and NGLs			(189,220)		(50,021)		(182,554)		149,839		(271,956)
	Operating expenses			(7,936)		(13,151)		(6,719)		-		(27,806)
	Segment profit		$	22,351	$	32,993	$	16,603	$	-	$	71,947
	Gain (loss) on derivatives		$	102	$	(2,263)	$	(8)	$	-	$	(2,169)
	Depreciation, amortization
		and impairments	$	(3,172)	$	(20,433)	$	(7,959)	$	(632)	$	(32,196)
	Capital expenditures		$	8	$	13,156	$	15,662	$	454	$	29,280
	Identifiable assets		$	287,879	$	1,092,530	$	463,250	$	86,890	$	1,930,549
Three Months Ended March 31, 2011:
	Sales to external customers		$	204,918	$	80,966	$	203,886	$	-	$	489,770
	Sales to affiliates			22,322		21,585		485		(44,392)		-
	Purchased gas and NGLs			(195,503)		(63,159)		(185,663)		44,392		(399,933)
	Operating expenses			(8,067)		(11,352)		(5,625)		-		(25,044)
	Segment profit		$	23,670	$	28,040	$	13,083	$	-	$	64,793
	Loss on derivatives		$	(2,685)	$	(716)	$	(20)	$	-	$	(3,421)
	Depreciation, amortization and
		impairments	$	(3,161)	$	(17,720)	$	(7,713)	$	(1,078)	$	(29,672)
	Capital expenditures		$	1,550	$	18,203	$	4,083	$	487	$	24,323
	Identifiable assets		$	324,924	$	1,110,852	$	489,147	$	39,670	$	1,964,593

	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
		March 31,
		2012		2011
Segment profits		$	71,947	$	64,793
General and administrative expenses			(15,606)		(12,481)
Loss on derivatives			(2,169)		(3,421)
Gain on sale of property			98		19
Depreciation, amortization and impairments			(32,196)		(29,672)
Operating income		$	22,074	$	19,238