Reportable Segments

3 Months Ended

Mar. 31, 2016

Reportable Segments [Abstract]

Reportable Segments

15. REPORTABLE SEGMENTS

The operating segments, reported separately herein, are best defined as: (1) Exploration and Production and (2) Midstream. 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, natural gas liquids (“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):

	Three Months Ended March 31, 2016
	Exploration & Production		Midstream		Total
Operating revenues
Natural gas sales	$	3,675	$	—	$	3,675
Oil sales		5,343		—		5,343
Natural gas liquids sales		276		—		276
Gathering and transportation sales		—		13,875		13,875
Total operating revenues		9,294		13,875		23,169
Operating expenses:
Lease operating expenses		4,875		98		4,973
Transportation operating expenses		—		3,054		3,054
Cost of sales		130		—		130
Production taxes		221		—		221
General and administrative		4,434		1,285		5,719
Unit compensation expense		438		—		438
Depreciation, depletion and amortization		2,114		5,074		7,188
Asset impairments		1,309		—		1,309
Accretion expense		254		61		315
Total operating expenses		13,775		9,572		23,347
Operating income (loss)	$	(4,481)	$	4,303	$	(178)

	Three Months Ended March 31, 2015
	Exploration & Production		Midstream		Total
Operating revenues
Natural gas sales	$	6,574	$	—	$	6,574
Oil sales		4,964		—		4,964
Natural gas liquids sales		386		—		386
Gathering and transportation sales		—		—		—
Total operating revenues		11,924		—		11,924
Operating expenses:
Lease operating expenses		4,900		—		4,900
Cost of sales		205		—		205
Production taxes		370		—		370
General and administrative		7,555		—		7,555
Unit compensation expense		1,992		—		1,992
Loss on sale of assets		(59)		—		(59)
Depreciation, depletion and amortization		3,120		—		3,120
Asset impairments		82,865		—		82,865
Accretion expense		253		—		253
Total operating expenses		101,201		—		101,201
Operating loss	$	(89,277)	$	—	$	(89,277)

The following table summarizes the total assets by operating segment as of March 31, 2016 and December 31, 2015 (in thousands):

		March 31,		December 31,
Segment Assets		2016		2015
Exploration & Production	$	87,396	$	118,083
Midstream		372,354		353,217
Total assets	$	459,750	$	471,300