Segments

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segments

21.

SEGMENTS

As described in Note 1, 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. 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.

In the fourth quarter of 2018, due to recent changes in our asset portfolio, the company elected to reorganize its business structure and reporting relationships to enhance execution and capture operating efficiencies. In conjunction with the reorganization, our reportable segments have changed. Prior period segment disclosures have been recast to reflect the new segments. U.S. Liquids includes the results of our U.S. crude oil operations, including the results of HFOTCO, subsequent to its acquisition in 2017. U.S. Gas contains the results of our historical SemGas segment. Canada includes the operations of our historical SemCAMS segment. Our prior SemMexico and SemLogistics segments are included within Corporate and Other, as these businesses were disposed of in 2018. 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.

Segment Profit is defined as revenue, less cost of products sold (exclusive of depreciation and amortization) and operating expenses, plus equity earnings and is adjusted to remove unrealized gains and losses on commodity derivatives and to reflect equity earnings on an EBITDA basis. Reflecting equity earnings on an EBITDA basis is achieved by adjusting equity earnings to exclude our percentage of interest, taxes, depreciation and amortization from equity earnings for operated equity method investees. For our investment in NGL Energy, we exclude equity earnings and include cash distributions received.

Our results by segment are presented in the tables below (in thousands):

	Year Ended December 31,
	2018			2017			2016
Revenues:
U.S. Liquids
External	$	2,017,701		$	1,493,548		$	827,379
U.S. Gas
External	250,285			222,048			208,042
Intersegment	15,036			11,170			10,928
Canada
External	193,134			183,232			133,216
Corporate and Other
External	42,142			183,089			163,527
Intersegment	(15,036		)	(11,170		)	(10,928		)
Total Revenues	$	2,503,262		$	2,081,917		$	1,332,164
	Year Ended December 31,
	2018			2017			2016
Earnings from equity method investments:
U.S. Liquids	$	57,625		$	67,345		$	71,569
Corporate and Other	47			(14		)	2,147
Total earnings from equity method investments	$	57,672		$	67,331		$	73,716
	Year Ended December 31,
	2018			2017			2016
Depreciation and amortization:
U.S. Liquids	$	142,237		$	88,738		$	32,449
U.S. Gas	42,997			37,059			36,170
Canada	21,051			18,530			16,867
Corporate and Other	2,969			14,094			13,318
Total depreciation and amortization	$	209,254		$	158,421		$	98,804

	Year Ended December 31,
	2018			2017			2016
Income tax expense (benefit):
U.S. Liquids	$	575		$	362		$	—
Canada	11,018			8,863			3,667
Corporate and Other	11,711			(11,613		)	7,601
Total income tax expense (benefit)	$	23,304		$	(2,388	)	$	11,268
	Year Ended December 31,
	2018			2017			2016
Segment profit:
U.S. Liquids	$	309,423		$	229,208		$	190,768
U.S. Gas	67,070			67,805			66,530
Canada	81,330			76,274			53,264
Corporate and Other	9,726			33,236			39,534
Total segment profit	$	467,549		$	406,523		$	350,096
	Year Ended December 31,
	2018			2017			2016
Reconciliation of segment profit to net income (loss):
Total segment profit	$	467,549		$	406,523		$	350,096
Less:
Adjustment to reflect equity earnings on an EBITDA basis	19,532			26,890			28,757
Net unrealized loss (gain) related to derivative instruments	(5,053		)	40			989
General and administrative expense	91,568			113,779			84,183
Depreciation and amortization	209,254			158,421			98,804
Loss (gain) on disposal or impairment, net	(3,563		)	13,333			16,048
Interest expense	149,714			103,009			62,650
Loss on early extinguishment of debt	—			19,930			—
Foreign currency transaction loss (gain)	9,501			(4,709		)	4,759
Loss (gain) on sale or impairment of non-operated equity method investment	—			—			30,644
Other expense (income), net	(2,380		)	(4,632		)	(1,269		)
Income tax expense (benefit)	23,304			(2,388		)	11,268
Loss from discontinued operations	—			—			1
Net income (loss)	$	(24,328	)	$	(17,150	)	$	13,262
	Year Ended December 31,
	2018			2017			2016
Additions to long-lived assets, including acquisitions and contributions to equity method investments:
U.S. Liquids	$	119,064		$	2,289,218		$	240,242
U.S. Gas	31,102			100,537			21,913
Canada	218,566			113,263			34,506
Corporate and Other	1,804			18,062			28,020
Total additions to long-lived assets	$	370,536		$	2,521,080		$	324,681

	December 31,
	2018		2017
Total assets (excluding intersegment receivables):
U.S. Liquids	$	3,689,384	$	3,871,334
U.S. Gas	716,837		714,777
Canada	684,418		518,900
Corporate and Other	119,668		271,806
Total	$	5,210,307	$	5,376,817
	December 31,
	2018		2017
Equity investments:
U.S. Liquids	$	255,043	$	266,362
Corporate and Other	18,966		18,919
Total equity investments	$	274,009	$	285,281