3. SEGMENT INFORMATION

We evaluate our business operations each reporting period to determine whether any of our gathering system operating segments in which we internally report financial information are considered significant and would require us to separately disclose certain segment financial information in our external reporting. As a result of our evaluation during the second quarter of 2017, we determined that both the Summit Utica natural gas gathering system and the Ohio Gathering natural gas gathering system, each previously reported within the Utica Shale reportable segment, were and are expected to continue to be individually significant operating segments. As such, we modified our current segments in the second quarter of 2017 such that the Utica Shale reportable segment includes the Summit Utica gathering system and the Ohio Gathering reportable segment includes our ownership interest in OGC and OCC. For the year ended December 31, 2017, we have disclosed the required segment information for Summit Utica and Ohio Gathering and the periods prior to January 1, 2017 have been recast to reflect this change.

As of December 31, 2017, our reportable segments are:

•

the Utica Shale, which is served by Summit Utica;

•

Ohio Gathering, which includes our ownership interest in OGC and OCC;

•

the Williston Basin, which is served by Polar and Divide, Tioga Midstream and Bison Midstream;

•

the Piceance/DJ Basins, which is served by Grand River and Niobrara G&P;

•

the Barnett Shale, which is served by DFW Midstream; and

•

the Marcellus Shale, which is served by Mountaineer Midstream.

Each of our reportable segments provides midstream services in a specific geographic area. Our reportable segments reflect the way in which we internally report the financial information used to make decisions and allocate resources in connection with our operations.

The Ohio Gathering reportable segment includes our investment in OGC and OCC (see Note 7). Income or loss from equity method investees, as reflected on the statements of operations, solely relates to Ohio Gathering and is recognized and disclosed on a one-month lag (see Note 7).

Corporate and other represents those results that are: (i) not specifically attributable to a reportable segment; (ii) not individually reportable; or (iii) that have not been allocated to our reportable segments for the purpose of evaluating their performance, including certain general and administrative expense items, natural gas and crude oil marketing services, and transaction costs.

Assets by reportable segment follow.

	December 31,
	2017			2016			2015
	(In thousands)
Assets:
Utica Shale	$	212,311		$	199,392		$	135,056
Ohio Gathering		690,485			707,415			751,168
Williston Basin		512,860			724,084			740,361
Piceance/DJ Basins		798,722			843,440			866,095
Barnett Shale		383,306			404,314			416,586
Marcellus Shale		217,362			224,709			233,116
Total reportable segment assets		2,815,046			3,103,354			3,142,382
Corporate and other		79,996			12,294			22,290
Eliminations		(249	)		(469	)		—
Total assets	$	2,894,793		$	3,115,179		$	3,164,672

Revenues by reportable segment follow.

	Year ended December 31,
	2017			2016			2015
	(In thousands)
Revenues (1):
Utica Shale	$	38,907		$	24,263		$	4,700
Williston Basin		161,503			122,174			98,929
Piceance/DJ Basins		166,753			149,903			180,418
Barnett Shale		71,667			79,956			88,042
Marcellus Shale		30,394			26,111			28,468
Total reportable segments revenue		469,224			402,407			400,557
Corporate and other		26,446			412			—
Eliminations		(6,929	)		(457	)		—
Total revenues	$	488,741		$	402,362		$	400,557

(1) Excludes revenues earned by Ohio Gathering due to equity method accounting.

Counterparties accounting for more than 10% of total revenues were as follows:

	Year ended December 31,
	2017			2016			2015
Percentage of total revenues (1)(2):
Counterparty A - Piceance/DJ Basins	*				14	%		16	%
Counterparty B - Williston Basin		13	%	*			*
Counterparty C - Piceance/DJ Basins	*			*				14	%

(1) Includes recognition of revenue that was previously deferred in connection with minimum volume commitments (see Note 8).

(2) Excludes revenues earned by Ohio Gathering due to equity method accounting.

* Less than 10%

Depreciation and amortization, including the amortization expense associated with our favorable and unfavorable gas gathering contracts as reported in other revenues, by reportable segment follows.

	Year ended December 31,
	2017		2016		2015
	(In thousands)
Depreciation and amortization (1):
Utica Shale	$	7,009	$	4,331	$	1,417
Williston Basin		33,772		33,676		31,376
Piceance/DJ Basins		48,925		49,140		47,433
Barnett Shale (2)		15,001		16,093		16,392
Marcellus Shale		9,047		8,841		8,682
Total reportable segment depreciation and amortization		113,754		112,081		105,300
Corporate and other		1,118		580		603
Total depreciation and amortization	$	114,872	$	112,661	$	105,903

(1) Excludes depreciation and amortization recognized by Ohio Gathering due to equity method accounting.

(2) Includes the amortization expense associated with our favorable and unfavorable gas gathering contracts as reported in other revenues.

Cash paid for capital expenditures by reportable segment follow.

	Year ended December 31,
	2017		2016		2015
	(In thousands)
Cash paid for capital expenditures (1):
Utica Shale	$	22,921	$	78,708	$	94,994
Williston Basin		17,309		31,541		147,477
Piceance/DJ Basins		23,714		25,719		21,144
Barnett Shale		569		3,910		6,875
Marcellus Shale		641		1,173		1,306
Total reportable segment capital expenditures		65,154		141,051		271,796
Corporate and other		59,061		1,668		429
Total cash paid for capital expenditures	$	124,215	$	142,719	$	272,225

(1) Excludes cash paid for capital expenditures by Ohio Gathering due to equity method accounting.

During the year ended December 31, 2017, Corporate included cash paid of $3.0 million for corporate purposes; the remainder represents capital expenditures for Summit Permian.

We assess the performance of our reportable segments based on segment adjusted EBITDA. We define segment adjusted EBITDA as total revenues less total costs and expenses; plus (i) other income excluding interest income, (ii) our proportional adjusted EBITDA for equity method investees, (iii) depreciation and amortization, (iv) adjustments related to MVC shortfall payments, (v) unit-based and noncash compensation, (vi) change in the Deferred Purchase Price Obligation fair value, (vii) early extinguishment of debt expense, (viii) impairments and (ix) other noncash expenses or losses, less other noncash income or gains. We define proportional adjusted EBITDA for our equity method investees as the product of (i) total revenues less total expenses, excluding impairments and other noncash income or expense items and (ii) amortization for deferred contract costs; multiplied by our ownership interest in Ohio Gathering during the respective period.

For the purpose of evaluating segment performance, we exclude the effect of Corporate and other revenues and expenses, such as certain general and administrative expenses (including compensation-related expenses and professional services fees), natural gas and crude oil marketing services, transaction costs, interest expense, change in the Deferred Purchase Price Obligation fair value, early extinguishment of debt expense and income tax expense or benefit from segment adjusted EBITDA.

Segment adjusted EBITDA by reportable segment follows.

	Year ended December 31,
	2017		2016		2015
	(In thousands)
Reportable segment adjusted EBITDA
Utica Shale	$	34,011	$	21,035	$	2,206
Ohio Gathering		41,246		45,602		33,667
Williston Basin		66,413		79,475		34,008
Piceance/DJ Basins		117,737		109,241		110,222
Barnett Shale		46,232		54,634		59,526
Marcellus Shale		23,888		19,203		23,214
Total of reportable segments' measures of profit or loss	$	329,527	$	329,190	$	262,843

A reconciliation of income or loss before income taxes and income or loss from equity method investees to total of reportable segments' measures of profit or loss follows.

	Year ended December 31,
	2017			2016			2015
	(In thousands)
Reconciliation of income or loss before income taxes and income or loss from equity method investees to total of reportable segments' measures of profit or loss:
Income (loss) before income taxes and income (loss) from equity method investees	$	88,614		$	(7,768	)	$	(216,268	)
Add:
Corporate and other		39,140			37,589			27,352
Interest expense		68,131			63,810			59,092
Early extinguishment of debt		22,039			—			—
Deferred Purchase Price Obligation		(200,322	)		55,854			—
Depreciation and amortization		114,872			112,661			105,903
Proportional adjusted EBITDA for equity method investees		41,246			45,602			33,667
Adjustments related to MVC shortfall payments		(41,373	)		11,600			(11,902	)
Unit-based and noncash compensation		7,951			7,985			7,017
Loss (gain) on asset sales, net		527			93			(172	)
Long-lived asset impairment		188,702			1,764			9,305
Goodwill impairment		—			—			248,851
Less:
Interest income		—			—			2
Total of reportable segments' measures of profit or loss	$	329,527		$	329,190		$	262,843

We include adjustments related to MVC shortfall payments in our calculation of segment adjusted EBITDA to account for (i) the net increases or decreases in deferred revenue for MVC shortfall payments and (ii) our inclusion of expected annual MVC shortfall payments. With respect to the impact of a net change in deferred revenue for MVC shortfall payments, we treat increases in deferred revenue balances as a favorable adjustment to segment adjusted EBITDA, while decreases in deferred revenue balances are treated as an unfavorable adjustment to segment adjusted EBITDA. We also include a proportional amount of any historical and expected MVC shortfall payments in each quarter prior to the quarter in which we actually recognize the shortfall payment. The expected MVC shortfall payment adjustments have not been billed to our customers and are not recognized in our consolidated financial statements.

Adjustments related to MVC shortfall payments by reportable segment follow.

	Year ended December 31, 2017
	Williston Basin			Piceance/DJ Basins			Barnett Shale			Total
	(In thousands)
Adjustments related to MVC shortfall payments:
Net change in deferred revenue for MVC shortfall payments	$	(37,693	)	$	(3,065	)	$	—		$	(40,758	)
Expected MVC shortfall adjustments		—			(3	)		(612	)		(615	)
Total adjustments related to MVC shortfall payments	$	(37,693	)	$	(3,068	)	$	(612	)	$	(41,373	)

	Year ended December 31, 2016
	Williston Basin		Piceance/DJ Basins			Barnett Shale			Total
	(In thousands)
Adjustments related to MVC shortfall payments:
Net change in deferred revenue for MVC shortfall payments	$	8,691	$	3,288		$	(677	)	$	11,302
Expected MVC shortfall adjustments		—		(317	)		615			298
Total adjustments related to MVC shortfall payments	$	8,691	$	2,971		$	(62	)	$	11,600

	Year Ended December 31, 2015
	Williston Basin		Piceance/DJ Basins			Barnett Shale			Total
	(In thousands)
Adjustments related to MVC shortfall payments:
Net change in deferred revenue for MVC shortfall payments	$	11,870	$	(21,623	)	$	(1,700	)	$	(11,453	)
Expected MVC shortfall adjustments		—		33			(482	)		(449	)
Total adjustments related to MVC shortfall payments	$	11,870	$	(21,590	)	$	(2,182	)	$	(11,902	)