Segment Information

6 Months Ended

Jun. 30, 2012

Segment Reporting [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, the investment in HEP, and as of June 30, 2012, $245.1 million in restricted cash. (See note 2 in these notes to condensed consolidated financial statements for additional discussion of the restricted cash)

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 June 30, 2012:
	Sales to external customers		$	121,479	$	61,236	$	168,479	$	-	$	351,194
	Sales to affiliates			60,415		17,227		40,243		(117,885)		-
	Purchased gas and NGLs			(153,601)		(31,457)		(193,717)		117,885		(260,890)
	Operating expenses			(8,759)		(14,144)		(7,668)		-		(30,571)
	Segment profit		$	19,534	$	32,862	$	7,337	$	-	$	59,733
	Gain (loss) on derivatives		$	4,541	$	(153)	$	517	$	-	$	4,905
	Depreciation, amortization
		and impairments	$	(3,200)	$	(21,009)	$	(8,069)	$	(611)	$	(32,889)
	Capital expenditures		$	1,886	$	20,295	$	30,255	$	1,076	$	53,512
	Identifiable assets		$	280,090	$	1,086,299	$	498,888	$	383,160	$	2,248,437
Three Months Ended June 30, 2011:
	Sales to external customers		$	219,479	$	87,813	$	218,443	$	-	$	525,735
	Sales to affiliates			23,728		21,295		207		(45,230)		-
	Purchased gas and NGLs			(211,417)		(64,360)		(198,630)		45,230		(429,177)
	Operating expenses			(8,902)		(12,108)		(6,903)		-		(27,913)
	Segment profit		$	22,888	$	32,640	$	13,117	$	-	$	68,645
	Gain (loss) on derivatives		$	(1,269)	$	(377)	$	110	$	-	$	(1,536)
	Depreciation, amortization and
		impairments	$	(4,045)	$	(18,744)	$	(7,828)	$	(1,037)	$	(31,654)
	Capital expenditures		$	1,129	$	16,807	$	5,555	$	715	$	24,206
	Identifiable assets		$	327,174	$	1,112,750	$	492,920	$	78,345	$	2,011,189
Six Months Ended June 30, 2012:
	Sales to external customers		$	268,177	$	125,917	$	328,809	$	-	$	722,903
	Sales to affiliates			133,225		48,711		85,787		(267,723)		-
	Purchased gas and NGLs			(342,822)		(81,478)		(376,269)		267,723		(532,846)
	Operating expenses			(16,696)		(27,295)		(14,387)		-		(58,378)
	Segment profit		$	41,884	$	65,855	$	23,940	$	-	$	131,679
	Gain (loss) on derivatives		$	4,643	$	(2,416)	$	509	$	-	$	2,736
	Depreciation, amortization
		and impairments	$	(6,372)	$	(41,442)	$	(16,028)	$	(1,243)	$	(65,085)
	Capital expenditures		$	1,888	$	33,451	$	45,917	$	1,536	$	82,792
	Identifiable assets		$	280,090	$	1,086,299	$	498,888	$	383,160	$	2,248,437
Six Months Ended June 30, 2011:
	Sales to external customers		$	424,397	$	168,779	$	422,329	$	-	$	1,015,505
	Sales to affiliates			46,050		42,880		692		(89,622)		-
	Purchased gas and NGLs			(406,920)		(127,519)		(384,294)		89,622		(829,111)
	Operating expenses			(16,969)		(23,460)		(12,528)		-		(52,957)
	Segment profit		$	46,558	$	60,680	$	26,199	$	-	$	133,437
	Gain (loss) on derivatives		$	(3,954)	$	(1,094)	$	91	$	-	$	(4,957)
	Depreciation, amortization
		and impairments	$	(7,205)	$	(36,464)	$	(15,541)	$	(2,116)	$	(61,326)
	Capital expenditures		$	2,679	$	35,011	$	9,636	$	1,202	$	48,528
	Identifiable assets		$	327,174	$	1,112,750	$	492,920	$	78,345	$	2,011,189

	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				Six Months Ended
		June 30,				June 30,
		2012		2011		2012		2011
Segment profits		$	59,733	$	68,645		131,679		133,437
General and administrative expenses			(13,774)		(13,272)		(29,380)		(25,754)
Gain (loss) on derivatives			4,905		(1,536)		2,736		(4,957)
Gain on sale of property			406		60		504		80
Depreciation, amortization and impairments			(32,889)		(31,654)		(65,085)		(61,326)
Operating income		$	18,381	$	22,243		40,454		41,480