Reporting Segments

12 Months Ended

Dec. 31, 2015

Reporting Segments [Abstract]

Reporting Segments

15. REPORTING SEGMENTS

Exploration and Production and Midstream best define the operating segments of the businesses that are reported separately. The factors used to identify these reportable segments are based on the nature of the operations that are undertaken by each segment. The Exploration and Production segment operates to explore for and produce crude oil and natural gas. The Midstream segment operates the gathering, processing and transportation of crude oil, NGLs and natural gas.  These segments are broadly understood across the petroleum and petrochemical industries.

These functions have been defined as the operating segments of the Partnership because they are the segments (1) that engage in business activities from which revenues are earned and expenses are incurred; (2) whose operating results are regularly reviewed by the Partnership’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance; and (3) for which discrete financial information is available.  Operating segments are evaluated for their contribution to the Partnership’s consolidated results based on operating income, which is defined as segment operating revenues less expenses.

The following tables set forth our segment information for the periods indicated (in thousands):

	Year Ended December 31, 2015
	Exploration & Production		Midstream		Total
Operating revenues
Natural gas sales	$	19,809	$	—	$	19,809
Oil sales		35,297		—		35,297
Natural gas liquids sales		1,597		—		1,597
Gathering and transportation sales		—		11,725		11,725
Total operating revenues		56,703		11,725		68,428
Operating expenses:
Lease operating expenses		19,890		98		19,988
Transportation operating expenses		—		2,176		2,176
Cost of sales		595		—		595
Production taxes		1,792		—		1,792
General and administrative		26,109		—		26,109
Exploration costs		1,866		—		1,866
Gain on sale of assets		(111)		—		(111)
Depreciation, depletion and amortization		10,330		4,206		14,536
Asset impairments		123,860		—		123,860
Accretion expense		1,048		51		1,099
Total operating expenses		185,379		6,531		191,910
Operating income (loss)	$	(128,676)	$	5,194	$	(123,482)

	Year Ended December 31, 2014
	Exploration & Production		Midstream		Total
Operating revenues
Natural gas sales	$	34,458	$	—	$	34,458
Oil sales		40,337		—		40,337
Natural gas liquids sales		2,477		—		2,477
Gathering and transportation sales		—		—		—
Total operating revenues		77,272		—		77,272
Operating expenses:
Lease operating expenses		21,012		—		21,012
Cost of sales		1,487		—		1,487
Production taxes		3,200		—		3,200
General and administrative		16,499		—		16,499
Loss on sale of assets		223		—		223
Depreciation, depletion and amortization		17,533		—		17,533
Asset impairments		5,424		—		5,424
Accretion expense		604		—		604
Total operating expenses		65,982		—		65,982
Operating income	$	11,290	$	—	$	11,290

The following table summarizes the total assets by operating segment for the years ended December 31, 2015 and 2014 (in thousands):

		December 31,
Segment Assets		2015		2014
Exploration & Production	$	120,174	$	173,247
Midstream		353,217		—
Total assets	$	473,391	$	173,247

The following table summarizes the percentage of revenue earned from those customers in each segment that exceed 10% of the Partnership's consolidated segment's revenue for the each of the periods presented below:

	Year Ended
	December 31,
	2015			2014
Exploration & Production
Customer A		33	%		33	%
Customer B		41			30
Customer C		1			16
Customer D		18			14
All Others		7			7
Total		100	%		100	%
Midstream
Customer E		100	%		—	%
Total		100	%		—	%