Note 22 — Segment Information

We operate in two primary segments: (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.

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 (including the Midland and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including exposure to the SCOOP and STACK plays) 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 the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as storing, fractionating, terminaling, transporting and marketing of NGLs and NGL products, including services to LPG exporters; storing and terminaling of refined petroleum products and crude oil and certain natural gas supply and marketing activities in support of our other businesses. The Logistics and Marketing segment includes Grand Prix, which is currently under construction. The associated assets are generally connected to and supplied in part by our Gathering and Processing segment and, except for the pipeline projects and smaller terminals, are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana.

Other contains the results of commodity derivative activities related to Gathering and Processing hedges of equity volumes that are 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:

	Three Months Ended September 30, 2018
	Gathering and Processing		Logistics and Marketing		Other			Corporate and Eliminations			Total
Revenues
Sales of commodities	$	296.7	$	2,378.2	$	(20.8	)	$	—		$	2,654.1
Fees from midstream services		199.3		133.0		—			—			332.3
		496.0		2,511.2		(20.8	)		—			2,986.4
Intersegment revenues
Sales of commodities		1,069.7		15.5		—			(1,085.2	)		—
Fees from midstream services		1.5		8.5		—			(10.0	)		—
		1,071.2		24.0		—			(1,095.2	)		—
Revenues	$	1,567.2	$	2,535.2	$	(20.8	)	$	(1,095.2	)	$	2,986.4
Operating margin	$	255.3	$	173.5	$	(20.8	)	$	—		$	408.0
Other financial information:
Total assets (1)	$	11,331.5	$	5,019.0	$	64.2		$	154.4		$	16,569.1
Goodwill	$	256.6	$	—	$	—		$	—		$	256.6
Capital expenditures	$	453.0	$	560.7	$	—		$	4.0		$	1,017.7

__________________________________________________________________________________________

(1)

Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.

	Three Months Ended September 30, 2017
	Gathering and Processing		Logistics and Marketing		Other			Corporate and Eliminations			Total
Revenues
Sales of commodities	$	200.3	$	1,672.2	$	(1.0	)	$	—		$	1,871.5
Fees from midstream services		148.5		111.8		—			—			260.3
		348.8		1,784.0		(1.0	)		—			2,131.8
Intersegment revenues
Sales of commodities		783.7		80.6		—			(864.3	)		—
Fees from midstream services		1.7		7.0		—			(8.7	)		—
		785.4		87.6		—			(873.0	)		—
Revenues	$	1,134.2	$	1,871.6	$	(1.0	)	$	(873.0	)	$	2,131.8
Operating margin	$	198.3	$	115.9	$	(1.0	)	$	—		$	313.2
Other financial information:
Total assets (1)	$	10,644.3	$	3,240.9	$	30.8		$	82.3		$	13,998.3
Goodwill	$	256.6	$	—	$	—		$	—		$	256.6
Capital expenditures	$	295.9	$	71.0	$	—		$	11.8		$	378.7

__________________________________________________________________________________________

(1)	Assets included in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.

	Nine Months Ended September 30, 2018
	Gathering and Processing		Logistics and Marketing		Other			Corporate and Eliminations			Total
Revenues
Sales of commodities	$	835.3	$	6,188.3	$	(42.2	)	$	—		$	6,981.4
Fees from midstream services		536.8		368.1		—			—			904.9
		1,372.1		6,556.4		(42.2	)		—			7,886.3
Intersegment revenues
Sales of commodities		2,848.9		147.0		—			(2,995.9	)		—
Fees from midstream services		5.4		24.3		—			(29.7	)		—
		2,854.3		171.3		—			(3,025.6	)		—
Revenues	$	4,226.4	$	6,727.7	$	(42.2	)	$	(3,025.6	)	$	7,886.3
Operating margin	$	718.4	$	441.7	$	(42.2	)	$	—		$	1,117.9
Other financial information:
Total assets (1)	$	11,331.5	$	5,019.0	$	64.2		$	154.4		$	16,569.1
Goodwill	$	256.6	$	—	$	—		$	—		$	256.6
Capital expenditures	$	1,008.2	$	1,229.9	$	—		$	72.3		$	2,310.4

___________________________________________________________________________________________

(1)	Assets included in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.

	Nine Months Ended September 30, 2017
	Gathering and Processing		Logistics and Marketing		Other		Corporate and Eliminations			Total
Revenues
Sales of commodities	$	544.4	$	4,804.8	$	3.9	$	—		$	5,353.1
Fees from midstream services		399.3		359.7		—		—			759.0
		943.7		5,164.5		3.9		—			6,112.1
Intersegment revenues
Sales of commodities		2,209.2		237.8		—		(2,447.0	)		—
Fees from midstream services		5.1		21.1		—		(26.2	)		—
		2,214.3		258.9		—		(2,473.2	)		—
Revenues	$	3,158.0	$	5,423.4	$	3.9	$	(2,473.2	)	$	6,112.1
Operating margin	$	549.3	$	358.5	$	3.9	$	(0.1	)	$	911.6
Other financial information:
Total assets (1)	$	10,644.3	$	3,240.9	$	30.8	$	82.3		$	13,998.3
Goodwill	$	256.6	$	—	$	—	$	—		$	256.6
Capital expenditures	$	730.7	$	241.8	$	—	$	15.2		$	987.7
Business acquisition	$	987.1	$	—	$	—	$	—		$	987.1

__________________________________________________________________________________________

(1)	Assets included in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Sales of commodities:
Revenue recognized from contracts with customers:
Natural gas	$	451.9		$	505.4		$	1,338.5		$	1,485.2
NGL		2,063.2			1,276.2			5,254.4			3,628.5
Condensate		95.7			44.9			286.1			135.8
Petroleum products		68.2			48.6			176.0			108.5
		2,679.0			1,875.1			7,055.0			5,358.0
Non-customer revenue:
Derivative activities - Hedge		(23.8	)		(2.1	)		(59.6	)		(2.0	)
Derivative activities - Non-hedge (1)		(1.1	)		(1.5	)		(14.0	)		(2.9	)
		(24.9	)		(3.6	)		(73.6	)		(4.9	)
Total sales of commodities		2,654.1			1,871.5			6,981.4			5,353.1

Fees from midstream services:
Revenue recognized from contracts with customers:
Fractionating and treating		31.1			29.8			90.3			92.8
Storage, terminaling, transportation and export		86.9			75.0			260.8			247.8
Gathering and processing		196.5			138.0			522.3			368.5
Other		17.8			17.5			31.5			49.9

Total fees from midstream services		332.3			260.3			904.9			759.0

Total revenues	$	2,986.4		$	2,131.8		$	7,886.3		$	6,112.1

__________________________________________________________________________________________

(1)

Represents derivative activities that are not designated as hedging instruments under ASC 815.

The following table shows a reconciliation of reportable segment operating margin to income (loss) before income taxes for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Reconciliation of reportable segment operating margin to income (loss) before income taxes:
Gathering and Processing operating margin	$	255.3		$	198.3		$	718.4		$	549.3
Logistics and Marketing operating margin		173.5			115.9			441.7			358.5
Other operating margin		(20.8	)		(1.0	)		(42.2	)		3.9
Depreciation and amortization expenses		(206.3	)		(208.3	)		(607.1	)		(602.8	)
General and administrative expenses		(63.2	)		(49.9	)		(176.9	)		(149.5	)
Impairment of property, plant and equipment		—			(378.0	)		—			(378.0	)
Interest expense, net		(78.2	)		(56.1	)		(124.2	)		(181.2	)
Change in contingent considerations		(16.6	)		126.8			(12.1	)		125.6
Other, net		(58.8	)		(0.2	)		(11.3	)		(53.1	)
Income (loss) before income taxes	$	(15.1	)	$	(252.5	)	$	186.3		$	(327.3	)