
4.	SEGMENTS

Our businesses are organized based on the nature and location of the services they provide. Certain summarized information related to our reportable segments is shown in the tables below. None of the operating segments have been aggregated, other than White Cliffs and Glass Mountain, which have been included within the Crude segment. Our investment in NGL Energy is included within the SemStream segment. Although “Corporate and Other” does not represent an operating segment, it is included in the tables below to reconcile segment information to that of the consolidated Company. Eliminations of transactions between segments are also included within “Corporate and Other” in the tables below.

The accounting policies of each segment are the same as the accounting policies of the consolidated Company. Transactions between segments are generally recorded based on prices negotiated between the segments. Certain general and administrative and interest expenses incurred at the corporate level are allocated to the segments, based on our allocation policies in effect at the time.



	Three Months Ended June 30, 2013
	Crude			SemStream			SemCAMS		SemGas			SemLogistics			SemMexico			Corporate and Other			Consolidated
									(dollars in thousands)
Revenues:
External	$	161,422		$	—		$	66,459	$	41,908		$	2,623		$	51,832		$	—		$	324,244
Intersegment	—			—			—		5,018			—			—			(5,018		)	—
Total revenues	161,422			—			66,459		46,926			2,623			51,832			(5,018		)	324,244
Expenses:
Costs of products sold, exclusive of depreciation and amortization shown below	140,506			—			1		33,567			—			43,653			(5,018		)	212,709
Operating	5,691			—			55,508		4,289			1,848			2,346			—			69,682
General and administrative	3,568			160			3,342		1,598			1,486			2,443			4,301			16,898
Depreciation and amortization	3,690			—			2,638		2,233			2,313			1,458			482			12,814
Gain on disposal of long-lived assets, net	(25		)	—			—		(4		)	—			(347		)	—			(376		)
Total expenses	153,430			160			61,489		41,683			5,647			49,553			(235		)	311,727
Earnings from equity method investments	10,661			4,200			—		—			—			—			—			14,861
Operating income (loss)	18,653			4,040			4,970		5,243			(3,024		)	2,279			(4,783		)	27,378
Other expenses (income), net	4,120			(1,193		)	4,748		676			357			153			1,752			10,613
Income (loss) from continuing operations before income taxes	$	14,533		$	5,233		$	222	$	4,567		$	(3,381	)	$	2,126		$	(6,535	)	$	16,765
Total assets at June 30, 2013 (excluding intersegment receivables)	$	867,993		$	176,816		$	298,793	$	156,724		$	160,490		$	100,910		$	334,925		$	2,096,651

For the three months ended June 30, 2013, two customers from our Crude segment accounted for 14% and 11% of our total consolidated revenue, respectively.



	Three Months Ended June 30, 2012
	Crude			SemStream			SemCAMS		SemGas			SemLogistics			SemMexico			Corporate and Other			Consolidated
									(dollars in thousands)
Revenues:
External	$	157,418		$	—		$	79,683	$	23,580		$	2,613		$	68,483		$	—		$	331,777
Intersegment	—			—			—		2,554			—			—			(2,554		)	—
Total revenues	157,418			—			79,683		26,134			2,613			68,483			(2,554		)	331,777
Expenses:
Costs of products sold, exclusive of depreciation and amortization shown below	140,549			3			71		19,990			99			61,778			(2,554		)	219,936
Operating	6,462			(21		)	68,848		3,306			1,631			2,163			—			82,389
General and administrative	2,063			(1		)	2,632		1,394			1,448			2,541			6,484			16,561
Depreciation and amortization	2,999			—			2,673		1,726			2,334			1,517			633			11,882
Loss on disposal of long-lived assets, net	56			—			—		—			—			63			—			119
Total expenses	152,129			(19		)	74,224		26,416			5,512			68,062			4,563			330,887
Earnings from equity method investments	8,461			3,828			—		—			—			—			—			12,289
Operating income (loss)	13,750			3,847			5,459		(282		)	(2,899		)	421			(7,117		)	13,179
Other expenses (income), net	(383		)	7			5,352		770			189			425			(773		)	5,587
Income (loss) from continuing operations before income taxes	$	14,133		$	3,840		$	107	$	(1,052	)	$	(3,088	)	$	(4	)	$	(6,344	)	$	7,592



	Six Months Ended June 30, 2013
	Crude			SemStream			SemCAMS			SemGas			SemLogistics			SemMexico			Corporate and Other			Consolidated
										(dollars in thousands)
Revenues:
External	$	332,654		$	—		$	102,240		$	76,562		$	5,658		$	94,826		$	—		$	611,940
Intersegment	—			—			—			9,103			—			—			(9,103		)	—
Total revenues	332,654			—			102,240			85,665			5,658			94,826			(9,103		)	611,940
Expenses:
Costs of products sold, exclusive of depreciation and amortization shown below	288,957			—			184			62,738			—			82,302			(9,103		)	425,078
Operating	11,429			1			82,392			8,433			3,687			4,511			—			110,453
General and administrative	7,418			316			7,487			3,189			2,606			4,665			8,254			33,935
Depreciation and amortization	7,197			—			5,294			4,361			4,653			2,938			1,007			25,450
(Gain) loss on disposal of long-lived assets, net	(25		)	6			—			(6		)	—			(513		)	—			(538		)
Total expenses	314,976			323			95,357			78,715			10,946			93,903			158			594,378
Earnings from equity method investments	21,090			11,116			—			—			—			—			—			32,206
Operating income (loss)	38,768			10,793			6,883			6,950			(5,288		)	923			(9,261		)	49,768
Other expenses (income), net	7,291			(2,161		)	9,459			1,269			1,113			(318		)	21,822			38,475
Income (loss) from continuing operations before income taxes	$	31,477		$	12,954		$	(2,576	)	$	5,681		$	(6,401	)	$	1,241		$	(31,083	)	$	11,293

For the six months ended June 30, 2013, one customer from our Crude segment accounted for 13% of our total consolidated revenue.



	Six Months Ended June 30, 2012
	Crude			SemStream			SemCAMS			SemGas			SemLogistics			SemMexico			Corporate and Other			Consolidated
										(dollars in thousands)
Revenues:
External	$	337,133		$	6		$	114,848		$	54,290		$	6,397		$	131,134		$	—		$	643,808
Intersegment	—			—			—			5,284			—			—			(5,284		)	—
Total revenues	337,133			6			114,848			59,574			6,397			131,134			(5,284		)	643,808
Expenses:
Costs of products sold, exclusive of depreciation and amortization shown below	301,057			37			190			46,539			99			118,819			(5,284		)	461,457
Operating	11,916			(27		)	95,084			6,159			3,085			4,163			—			120,380
General and administrative	4,781			50			7,050			3,237			3,259			5,229			12,785			36,391
Depreciation and amortization	5,966			—			5,246			3,356			4,652			3,078			1,309			23,607
Loss on disposal of long-lived assets, net	56			—			—			—			—			63			—			119
Total expenses	323,776			60			107,570			59,291			11,095			131,352			8,810			641,954
Earnings from equity method investments	15,032			4,755			—			—			—			—			—			19,787
Operating income (loss)	28,389			4,701			7,278			283			(4,698		)	(218		)	(14,094		)	21,641
Other expenses (income), net	(620		)	45			10,555			1,302			1,468			315			138			13,203
Income (loss) from continuing operations before income taxes	$	29,009		$	4,656		$	(3,277	)	$	(1,019	)	$	(6,166	)	$	(533	)	$	(14,232	)	$	8,438

Segment information for the three months and the six months ended June 30, 2012 has been recast to reflect SemStream's Arizona residential business as a discontinued operation. As result, the total revenues and total expenses decreased from amounts previously reported by $2.4 million and $2.8 million for the three months ended June 30, 2012 and by $8.0 million and $8.2 million for the six months ended June 30, 2012, respectively. Operating income and income from continuing operations before income taxes reported above has increased from amounts previously reported by $0.4 million and $0.4 million for the three months ended June 30, 2012 and by $0.2 million and $0.2 million for the six months ended June 30, 2012, respectively.