Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

Note 13 — Segment Information

We manage our business and analyze and report our results of operations on a segment basis. Our operations are divided into the following three segments for both internal and external reporting and analysis:

•  Texas, which provides midstream natural gas services in south and north Texas, including gathering and transportation of natural gas, and related services such as compression, dehydration, treating, processing and marketing. Our Texas segment also provides NGL fractionation and transportation. This segment includes our equity investments in Webb Duval, Eagle Ford Gathering and Liberty Pipeline Group, and a processing plant located in southwest Louisiana.

•  Oklahoma, which provides midstream natural gas services in central and east Oklahoma, including gathering of natural gas and related services such as compression, dehydration, treating, processing and nitrogen rejection. This segment includes our equity investment in Southern Dome.

•  Rocky Mountains, which provides midstream natural gas services in the Powder River Basin of Wyoming, including gathering and treating of natural gas and compressor rental services. This segment includes our equity investments in Bighorn and Fort Union.

The amounts indicated below as “Corporate and other” relate to our risk management activities, intersegment eliminations and other activities we perform or assets we hold that have not been allocated to any of our reporting segments.

We evaluate segment performance based on segment gross margin before depreciation, amortization and impairment. Operating and maintenance expenses and general and administrative expenses incurred at Corporate and other are allocated to Texas, Oklahoma and Rocky Mountains based on expenses directly attributable to each segment or an allocation based on activity, as appropriate. We use the same accounting methods and allocations in the preparation of our segment information as used in our consolidated reporting.

Summarized financial information concerning our reportable segments is shown in the following tables:

							Rocky						Corporate
	Texas			Oklahoma			Mountains			Total Segments			and Other			Consolidated
	(In thousands)
Three Months Ended September 30, 2011:
Total segment gross margin	$	44,540		$	27,876		$	432		$	72,848		$	(8,006	)	$	64,842
Operations and maintenance expenses		9,082			6,930			79			16,091			—			16,091
Depreciation, amortization and impairment		7,182			8,623			5,764			21,569			342			21,911
General and administrative expenses		3,010			2,199			339			5,548			4,483			10,031
Taxes other than income		711			774			17			1,502			—			1,502
Equity in (earnings) loss from unconsolidated affiliates		(1,894	)		(652	)		164,135			161,589			—			161,589
Operating income (loss)	$	26,449		$	10,002		$	(169,902	)	$	(133,451	)	$	(12,831	)	$	(146,282	)
Natural gas sales	$	74,681		$	47,528		$	127		$	122,336		$	(1,521	)	$	120,815
Natural gas liquids sales		118,280			79,154			—			197,434			(6,064	)		191,370
Transportation, compression and processing fees		23,407			2,727			4,203			30,337			—			30,337
Condensate and other		2,874			8,417			299			11,590			(421	)		11,169
Sales to external customers	$	219,242		$	137,826		$	4,629		$	361,697		$	(8,006	)	$	353,691
Interest and other financing costs	$	—		$	—		$	—		$	—		$	11,080		$	11,080
Three Months Ended September 30, 2010:
Total segment gross margin	$	31,218		$	23,010		$	1,091		$	55,319		$	2,584		$	57,903
Operations and maintenance expenses		6,779			6,163			62			13,004			—			13,004
Depreciation and amortization		6,106			7,941			765			14,812			406			15,218
General and administrative expenses		2,432			2,361			362			5,155			4,714			9,869
Taxes other than income		597			702			16			1,315			—			1,315
Equity in loss (earnings) from unconsolidated affiliates		97			(671	)		(1,475	)		(2,049	)		—			(2,049	)
Operating income (loss)	$	15,207		$	6,514		$	1,361		$	23,082		$	(2,536	)	$	20,546
Natural gas sales	$	41,906		$	46,958		$	164		$	89,028		$	(1,504	)	$	87,524
Natural gas liquids sales		62,032			55,423			—			117,455			1,544			118,999
Transportation, compression and processing fees		11,263			2,229			4,417			17,909			—			17,909
Condensate and other		3,020			7,291			417			10,728			2,544			13,272
Sales to external customers	$	118,221		$	111,901		$	4,998		$	235,120		$	2,584		$	237,704
Interest and other financing costs	$	—		$	—		$	—		$	—		$	12,943		$	12,943

							Rocky						Corporate
	Texas			Oklahoma			Mountains			Total Segments			and Other			Consolidated
				(In thousands)
Nine Months Ended September 30, 2011:
Total segment gross margin	$	135,685		$	79,623		$	2,245		$	217,553		$	(27,069	)	$	190,484
Operations and maintenance expenses		26,815			19,943			195			46,953			—			46,953
Depreciation, amortization and impairment		20,712			27,024			7,295			55,031			1,112			56,143
General and administrative expenses		8,731			6,766			1,003			16,500			18,030			34,530
Taxes other than income		1,938			2,056			18			4,012			17			4,029
Equity in loss (earnings) from unconsolidated affiliates		(1,698	)		(2,023	)		162,302			158,581			—			158,581
Operating income (loss)	$	79,187		$	25,857		$	(168,568	)	$	(63,524	)	$	(46,228	)	$	(109,752	)
Natural gas sales	$	211,466		$	141,264		$	380		$	353,110		$	(4,572	)	$	348,538
Natural gas liquids sales		315,879			224,174			—			540,053			(18,924	)		521,129
Transportation, compression and		61,989			7,927			12,790			82,706			—			82,706
Condensate and other		12,366			27,392			1,114			40,872			(3,573	)		37,299
Sales to external customers	$	601,700		$	400,757		$	14,284		$	1,016,741		$	(27,069	)	$	989,672
Interest and other financing costs	$	—		$	—		$	—		$	—		$	34,450		$	34,450
Segment assets	$	807,512		$	671,611		$	456,402		$	1,935,525		$	82,375		$	2,017,900
Nine Months Ended September 30, 2010:
Total segment gross margin	$	90,134		$	69,106		$	3,342		$	162,582		$	3,281		$	165,863
Operations and maintenance expenses		20,845			17,266			226			38,337			—			38,337
Depreciation and amortization		18,143			24,297			2,296			44,736			1,266			46,002
General and administrative expenses		7,606			6,338			1,487			15,431			15,880			31,311
Taxes other than income		1,860			1,779			19			3,658			—			3,658
Equity in loss (earnings) from unconsolidated affiliates		188			(2,311	)		21,911			19,788			—			19,788
Operating income (loss)	$	41,492		$	21,737		$	(22,597	)	$	40,632		$	(13,865	)	$	26,767
Natural gas sales	$	142,339		$	153,661		$	1,099		$	297,099		$	(4,540	)	$	292,559
Natural gas liquids sales		182,334			170,771			—			353,105			14			353,119
Transportation, compression and processing fees		29,288			4,860			13,391			47,539			—			47,539
Condensate and other		7,828			24,319			1,250			33,397			7,807			41,204
Sales to external customers	$	361,789		$	353,611		$	15,740		$	731,140		$	3,281		$	734,421
Interest and other financing costs	$	—		$	—		$	—		$	—		$	41,239		$	41,239