Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Information

(12) 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), the south Louisiana processing and NGL assets (PNGL) and rail, truck, pipeline, and barge facilities in the Ohio River Valley (ORV). Operating activity for intersegment eliminations 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. Corporate assets consist primarily of property and equipment, including software, for general corporate support, working capital, debt financing costs and its investment in HEP.

Summarized financial information concerning the Partnership's reportable segments is shown in the following table.

			LIG		NTX		PNGL		ORV		Corporate		Totals
			(In thousands)
Three Months Ended March 31, 2013:
	Sales to external customers		$	133,057	$	73,450	$	183,923	$	55,259	$	-	$	445,689
	Sales to affiliates		$	29,786	$	16,363	$	16,427	$	-	$	(62,576)	$	-
	Purchased gas, NGLs and crude oil		$	(140,633)	$	(46,118)	$	(175,783)	$	(41,064)	$	62,576	$	(341,022)
	Operating expenses		$	(7,661)	$	(14,172)	$	(7,218)	$	(8,285)	$	-	$	(37,336)
	Segment profit		$	14,549	$	29,523	$	17,349	$	5,910	$	-	$	67,331
	Gain (loss) on derivatives		$	373	$	(775)	$	(70)	$	-	$	-	$	(472)
	Depreciation, amortization
		and impairments	$	(3,139)	$	(19,791)	$	(7,975)	$	(2,342)	$	(498)	$	(33,745)
	Capital expenditures		$	8,232	$	5,023	$	96,166	$	15,246	$	4,954	$	129,621
	Identifiable assets		$	286,273	$	1,034,580	$	708,989	$	327,648	$	155,144	$	2,512,634
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)		-
	Gas and NGL marketing activities
	Purchased gas, NGLs and crude oil			(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)	$	-	$	(634)	$	(32,198)
	Capital expenditures		$	8	$	13,156	$	15,662	$	-	$	454	$	29,280
	Identifiable assets		$	287,879	$	1,092,530	$	463,250	$	-	$	86,890	$	1,930,549

	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,
		2013		2012
Segment profits		$	67,331	$	71,947
General and administrative expenses			(18,973)		(15,606)
Loss on derivatives			(472)		(2,169)
Gain (loss) on sale of property			(11)		98
Depreciation, amortization and impairments			(33,745)		(32,196)
Operating income		$	14,130	$	22,074