Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Note 26 — Segment Information

We operate in two primary segments (previously referred to as divisions): (i) Gathering and Processing, and (ii) Logistics and Marketing (also referred to as the Downstream Business).

Our reportable segments include operating segments that have been aggregated based on the nature of the products and services provided. Concurrent with the completion of the TRC/TRP Merger in the first quarter of 2016, management reevaluated our reportable segments and determined that our previously disclosed divisions are the appropriate level of aggregation for our reportable segments. The increase in activity within Field Gathering and Processing due to the Atlas mergers in 2015 coupled with the decline in activity in our Gulf Coast region makes the disaggregation of Field Gathering and Processing and Coastal Gathering and Processing no longer warranted. Management also determined that further disaggregation of our Logistics and Marketing segment is no longer appropriate due to the integrated nature of the operations within our Downstream Business and its leadership by a consolidated executive management team. The Gathering and Processing division was previously disaggregated into two reportable segments — (a) Field Gathering and Processing and (b) Coastal Gathering and Processing. The Logistics and Marketing division (also referred to as the Downstream Business) was previously disaggregated into two reportable segments—(a) Logistics Assets and (b) Marketing and Distribution.

Our Gathering and Processing segment includes assets used in the gathering of natural gas produced from oil and gas wells and processing this raw natural gas into merchantable natural gas by extracting NGLs and removing impurities; and assets used for crude oil gathering and terminaling. The Gathering and Processing segment's assets are located in the Permian Basin of West Texas and Southeast New Mexico; the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma and South Central Kansas; the Williston Basin in North Dakota and in the onshore and near offshore regions of the Louisiana Gulf Coast and the Gulf of Mexico.

Our Logistics and Marketing segment includes all the activities necessary to convert mixed NGLs into NGL products and provides certain value added services such as storing, terminaling, distributing and marketing of NGLs, the storage and terminaling of refined petroleum products and crude oil and certain natural gas supply and marketing activities in support of our other businesses including services to LPG exporters. It also includes certain natural gas supply and marketing activities in support of our other operations, as well as transporting natural gas and NGLs.

Logistics and Marketing operations are generally connected to and supplied in part by our Gathering and Processing segments and are predominantly located in Mont Belvieu and Galena Park, Texas, Lake Charles, Louisiana and Tacoma, Washington.

Other contains the results (including any hedge ineffectiveness) of commodity derivative activities included in operating margin and mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. Elimination of inter-segment transactions are reflected in the corporate and eliminations column.

Reportable segment information is shown in the following tables:

	Year Ended December 31, 2016
	Gathering and Processing		Logistics and Marketing		Other		Corporate and Eliminations			Total
Revenues
Sales of commodities	$	621.9	$	4,942.0	$	62.9	$	—		$	5,626.8
Fees from midstream    services		486.6		577.5		—		—			1,064.1
		1,108.5		5,519.5		62.9		—			6,690.9
Intersegment revenues
Sales of commodities		2,124.4		251.5		—		(2,375.9	)		—
Fees from midstream    services		7.8		23.5		—		(31.3	)		—
		2,132.2		275.0		—		(2,407.2	)		—
Revenues	$	3,240.7	$	5,794.5	$	62.9	$	(2,407.2	)	$	6,690.9
Operating margin	$	577.1	$	574.4	$	62.9	$	(0.1	)	$	1,214.3
Other financial information:
Total assets (1)	$	9,800.6	$	2,868.7	$	21.8	$	180.1		$	12,871.2
Goodwill	$	210.0	$	—	$	—	$	—		$	210.0
Capital expenditures	$	402.5	$	185.3	$	—	$	4.3		$	592.1

(1) Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.

	Year Ended December 31, 2015
	Gathering and Processing		Logistics and Marketing		Other		Corporate and Eliminations			Total
Revenues
Sales of commodities	$	1,485.4	$	3,895.8	$	84.2	$	—		$	5,465.4
Fees from midstream    services		427.1		766.1		—		—			1,193.2
		1,912.5		4,661.9		84.2		—			6,658.6
Intersegment revenues
Sales of commodities		1,126.3		208.9		—		(1,335.2	)		—
Fees from midstream    services		8.7		17.8		—		(26.5	)		—
		1,135.0		226.7		—		(1,361.7	)		—
Revenues	$	3,047.5	$	4,888.6	$	84.2	$	(1,361.7	)	$	6,658.6
Operating margin	$	515.1	$	681.7	$	84.2	$	—		$	1,281.0
Other financial information:
Total assets (1)	$	10,391.9	$	2,567.1	$	127.1	$	124.9		$	13,211.0
Goodwill	$	417.0	$	—	$	—	$	—		$	417.0
Capital expenditures	$	496.3	$	272.0	$	—	$	8.9		$	777.2
Business acquisition	$	5,024.2	$	—	$	—	$	—		$	5,024.2

(1) Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.

	Year Ended December 31, 2014
	Gathering and Processing		Logistics and Marketing		Other			Corporate and Eliminations			Total
Revenues
Sales of commodities	$	552.4	$	7,050.8	$	(8.0	)	$	—		$	7,595.2
Fees from midstream    services		224.7		796.6		—			—			1,021.3
		777.1		7,847.4		(8.0	)		—			8,616.5
Intersegment revenues
Sales of commodities		2,068.8		339.3		—			(2,408.1	)		—
Fees from midstream    services		5.2		28.5		—			(33.7	)		—
		2,074.0		367.8		—			(2,441.8	)		—
Revenues	$	2,851.1	$	8,215.2	$	(8.0	)	$	(2,441.8	)	$	8,616.5
Operating margin	$	449.9	$	694.7	$	(8.0	)	$	(0.1	)	$	1,136.5
Other financial information:
Total assets (1)	$	3,776.2	$	2,476.1	$	60.2		$	111.0		$	6,423.5
Capital expenditures	$	437.1	$	304.6	$	—		$	6.1		$	747.8

(1) Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.

The following table shows our consolidated revenues by product and service for the periods presented:

	2016		2015		2014
Sales of commodities:
Natural gas	$	1,584.5	$	1,578.6	$	1,414.1
NGL		3,777.3		3,558.3		5,960.1
Condensate		133.9		142.4		134.3
Petroleum products		68.2		101.6		96.3
Derivative activities		62.9		84.5		(9.6	)
		5,626.8		5,465.4		7,595.2
Fees from midstream services:
Fractionating and treating		126.2		209.0		208.9
Storage, terminaling, transportation and export		420.0		506.2		548.1
Gathering and processing		445.0		393.7		196.9
Other		72.9		84.3		67.4
		1,064.1		1,193.2		1,021.3
Total revenues	$	6,690.9	$	6,658.6	$	8,616.5

The following table shows a reconciliation of operating margin to net income (loss) for the periods presented:

	2016			2015			2014
Reconciliation of operating margin to net income (loss):
Operating margin	$	1,214.3		$	1,281.0		$	1,136.5
Depreciation and amortization expenses		(757.7	)		(677.1	)		(351.0	)
General and administrative expenses		(187.2	)		(161.7	)		(148.0	)
Goodwill impairment		(207.0	)		(290.0	)		—
Interest expense, net		(254.2	)		(231.9	)		(147.1	)
Other, net		(67.9	)		(32.1	)		0.6
Income tax (expense) benefit		100.6			(39.6	)		(68.0	)
Net income (loss)	$	(159.1	)	$	(151.4	)	$	423.0