CONDENSED CONSOLIDATING FINANCIAL INFORMATION

6 Months Ended

Jun. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

18. CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The Senior Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by SMLP and the Guarantor Subsidiaries (see Note 10).

The following supplemental condensed consolidating financial information reflects SMLP's separate accounts, the combined accounts of the Co-Issuers, the combined accounts of the Guarantor Subsidiaries, the combined accounts of the Non-Guarantor Subsidiaries and the consolidating adjustments for the dates and periods indicated. For purposes of the following consolidating information each of SMLP and the Co-Issuers account for their subsidiary investments, if any, under the equity method of accounting.

Condensed Consolidating Balance Sheets. Balance sheets as of June 30, 2018 and December 31, 2017 follow.

	June 30, 2018
	SMLP		Co-Issuers		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating adjustments			Total
	(In thousands)
Assets
Cash and cash equivalents	$	2,616	$	92	$	4,998	$	506	$	—		$	8,212
Accounts receivable		22		—		68,274		11,870		—			80,166
Other current assets		1,057		—		1,273		264		—			2,594
Due from affiliate		—		—		507,396		51,852		(559,248	)		—
Total current assets		3,695		92		581,941		64,492		(559,248	)		90,972
Property, plant and equipment, net		4,314		—		1,537,468		345,977		—			1,887,759
Intangible assets, net		—		—		263,416		23,249		—			286,665
Goodwill		—		—		16,211		—		—			16,211
Investment in equity method     investees		—		—		—		670,827		—			670,827
Other noncurrent assets		3,288		9,762		94		—		—			13,144
Investment in subsidiaries		2,062,096		3,396,771		—		—		(5,458,867	)		—
Total assets	$	2,073,393	$	3,406,625	$	2,399,130	$	1,104,545	$	(6,018,115	)	$	2,965,578
Liabilities and Partners' Capital
Trade accounts payable	$	141	$	—	$	18,280	$	3,277	$	—		$	21,698
Accrued expenses		803		—		17,030		1,600		—			19,433
Due to affiliate		374,074		185,265		—		—		(559,248	)		91
Deferred revenue		—		—		10,341		437		—			10,778
Ad valorem taxes payable		9		—		6,224		271		—			6,504
Accrued interest		—		12,259		—		—		—			12,259
Accrued environmental remediation		—		—		—		3,522		—			3,522
Other current liabilities		3,477		—		3,573		362		—			7,412
Total current liabilities		378,504		197,524		55,448		9,469		(559,248	)		81,697
Long-term debt		—		1,147,005		—		—		—			1,147,005
Deferred Purchase Price Obligation		453,922		—		—		—		—			453,922
Noncurrent deferred revenue		—		—		36,416		1,703		—			38,119
Noncurrent accrued environmental     remediation		—		—		—		1,617		—			1,617
Other noncurrent liabilities		4,159		—		2,197		54		—			6,410
Total liabilities		836,585		1,344,529		94,061		12,843		(559,248	)		1,728,770
Total partners' capital		1,236,808		2,062,096		2,305,069		1,091,702		(5,458,867	)		1,236,808
Total liabilities and partners' capital	$	2,073,393	$	3,406,625	$	2,399,130	$	1,104,545	$	(6,018,115	)	$	2,965,578

	December 31, 2017
	SMLP		Co-Issuers		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating adjustments			Total
	(In thousands)
Assets
Cash and cash equivalents	$	126	$	75	$	1,138	$	91	$	—		$	1,430
Accounts receivable		22		—		65,842		6,437		—			72,301
Other current assets		1,188		—		2,697		442		—			4,327
Due from affiliate		—		—		493,067		22,030		(515,097	)		—
Total current assets		1,336		75		562,744		29,000		(515,097	)		78,058
Property, plant and equipment, net		4,206		—		1,442,333		348,590		—			1,795,129
Intangible assets, net		—		—		278,958		22,387		—			301,345
Goodwill		—		—		16,211		—		—			16,211
Investment in equity method     investees		—		—		—		690,485		—			690,485
Other noncurrent assets		2,547		10,913		105		—		—			13,565
Investment in subsidiaries		2,019,700		3,324,464		—		—		(5,344,164	)		—
Total assets	$	2,027,789	$	3,335,452	$	2,300,351	$	1,090,462	$	(5,859,261	)	$	2,894,793
Liabilities and Partners' Capital
Trade accounts payable	$	209	$	—	$	11,283	$	4,883	$	—		$	16,375
Accrued expenses		928		—		10,592		979		—			12,499
Due to affiliate		263,935		252,250		—		—		(515,097	)		1,088
Deferred revenue		—		—		4,000		—		—			4,000
Ad valorem taxes payable		—		—		7,809		520		—			8,329
Accrued interest		—		12,310		—		—		—			12,310
Accrued environmental remediation		—		—		—		3,130		—			3,130
Other current liabilities		6,395		—		4,385		478		—			11,258
Total current liabilities		271,467		264,560		38,069		9,990		(515,097	)		68,989
Long-term debt		—		1,051,192		—		—		—			1,051,192
Deferred Purchase Price Obligation		362,959		—		—		—		—			362,959
Deferred revenue		—		—		12,707		—		—			12,707
Noncurrent accrued environmental     remediation		—		—		—		2,214		—			2,214
Other noncurrent liabilities		3,694		—		3,293		76		—			7,063
Total liabilities		638,120		1,315,752		54,069		12,280		(515,097	)		1,505,124
Total partners' capital		1,389,669		2,019,700		2,246,282		1,078,182		(5,344,164	)		1,389,669
Total liabilities and partners' capital	$	2,027,789	$	3,335,452	$	2,300,351	$	1,090,462	$	(5,859,261	)	$	2,894,793

Condensed Consolidating Statements of Operations. For the purposes of the following condensed consolidating statements of operations, we allocate general and administrative expenses recognized at the SMLP parent to the Guarantor Subsidiaries and Non-Guarantor Subsidiaries to reflect what those entities' results would have been had they operated on a stand-alone basis. Statements of operations for the three and six months ended June 30, 2018 and 2017 follow.

	Three months ended June 30, 2018
	SMLP			Co-Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating adjustments			Total
	(In thousands)
Revenues:
Gathering services and related fees	$	—		$	—		$	73,891		$	15,694		$	—		$	89,585
Natural gas, NGLs and condensate     sales		—			—			31,891			—			—			31,891
Other revenues		—			—			6,509			198			—			6,707
Total revenues		—			—			112,291			15,892			—			128,183
Costs and expenses:
Cost of natural gas and NGLs		—			—			24,384			—			—			24,384
Operation and maintenance		—			—			22,221			2,245			—			24,466
General and administrative		—			—			11,907			1,577			—			13,484
Depreciation and amortization		444			—			22,776			3,564			—			26,784
(Gain) loss on asset sales, net		—			—			(1	)		63			—			62
Long-lived asset impairment		—			—			587			—			—			587
Total costs and expenses		444			—			81,874			7,449			—			89,767
Other income		27			—			—			—			—			27
Interest expense		—			(14,837	)		—			—			—			(14,837	)
Deferred Purchase Price Obligation		(69,305	)		—			—			—			—			(69,305	)
(Loss) income before income     taxes and loss from equity     method investees		(69,722	)		(14,837	)		30,417			8,443			—			(45,699	)
Income tax expense		(294	)		—			—			—			—			(294	)
Loss from equity method     investees		—			—			—			(3,920	)		—			(3,920	)
Equity in earnings of consolidated     subsidiaries		20,103			34,940			—			—			(55,043	)		—
Net (loss) income	$	(49,913	)	$	20,103		$	30,417		$	4,523		$	(55,043	)	$	(49,913	)

	Three months ended June 30, 2017
	SMLP		Co-Issuers			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating adjustments			Total
	(In thousands)
Revenues:
Gathering services and related fees	$	—	$	—		$	67,679	$	17,122		$	—		$	84,801
Natural gas, NGLs and condensate     sales		—		—			10,595		—			—			10,595
Other revenues		—		—			6,332		64			—			6,396
Total revenues		—		—			84,606		17,186			—			101,792
Costs and expenses:
Cost of natural gas and NGLs		—		—			9,099		—			—			9,099
Operation and maintenance		—		—			22,169		1,847			—			24,016
General and administrative		—		—			10,886		2,063			—			12,949
Depreciation and amortization		154		—			25,282		3,252			—			28,688
Transaction costs		119		—			—		—			—			119
Loss on asset sales, net		—		—			67		—			—			67
Long-lived asset impairment		—		—			2		1			—			3
Total costs and expenses		273		—			67,505		7,163			—			74,941
Other income		64		—			—		—			—			64
Interest expense		—		(17,553	)		—		—			—			(17,553	)
Deferred Purchase Price Obligation		5,058		—			—		—			—			5,058
Income (loss) before income     taxes and loss from equity     method investees		4,849		(17,553	)		17,101		10,023			—			14,420
Income tax benefit		211		—			—		—			—			211
Loss from equity method     investees		—		—			—		(3,385	)		—			(3,385	)
Equity in earnings of consolidated     subsidiaries		6,186		23,739			—		—			(29,925	)		—
Net income	$	11,246	$	6,186		$	17,101	$	6,638		$	(29,925	)	$	11,246

	Six months ended June 30, 2018
	SMLP			Co-Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating adjustments			Total
	(In thousands)
Revenues:
Gathering services and related fees	$	—		$	—		$	143,357		$	30,589		$	—		$	173,946
Natural gas, NGLs and condensate     sales		—			—			58,008			—			—			58,008
Other revenues		—			—			13,236			313			—			13,549
Total revenues		—			—			214,601			30,902			—			245,503
Costs and expenses:
Cost of natural gas and NGLs		—			—			44,670			—			—			44,670
Operation and maintenance		—			—			44,374			4,696			—			49,070
General and administrative		—			—			24,244			3,682			—			27,926
Depreciation and amortization		876			—			45,637			6,948			—			53,461
(Gain) loss on asset sales, net		—			—			(75	)		63			—			(12	)
Long-lived asset impairment		—			—			587			—			—			587
Total costs and expenses		876			—			159,437			15,389			—			175,702
Other income		20			—			—			—			—			20
Interest expense		—			(29,959	)		—			—			—			(29,959	)
Deferred Purchase Price Obligation		(90,963	)		—			—			—			—			(90,963	)
(Loss) income before income     taxes and loss from equity     method investees		(91,819	)		(29,959	)		55,164			15,513			—			(51,101	)
Income tax expense		(123	)		—			—			—			—			(123	)
Loss from equity method     investees		—			—			—			(2,534	)		—			(2,534	)
Equity in earnings of consolidated     subsidiaries		38,184			68,143			—			—			(106,327	)		—
Net (loss) income	$	(53,758	)	$	38,184		$	55,164		$	12,979		$	(106,327	)	$	(53,758	)

	Six months ended June 30, 2017
	SMLP			Co-Issuers			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating adjustments			Total
	(In thousands)
Revenues:
Gathering services and related fees	$	—		$	—		$	170,192	$	32,622		$	—		$	202,814
Natural gas, NGLs and condensate     sales		—			—			21,715		—			—			21,715
Other revenues		—			—			12,932		136			—			13,068
Total revenues		—			—			204,839		32,758			—			237,597
Costs and expenses:
Cost of natural gas and NGLs		—			—			18,151		—			—			18,151
Operation and maintenance		—			—			44,189		3,519			—			47,708
General and administrative		—			—			23,371		3,710			—			27,081
Depreciation and amortization		308			—			50,524		6,425			—			57,257
Transaction costs		119			—			—		—			—			119
Loss on asset sales, net		—			—			70		—			—			70
Long-lived asset impairment		—			—			2		285			—			287
Total costs and expenses		427			—			136,307		13,939			—			150,673
Other income		135			—			—		—			—			135
Interest expense		—			(34,269	)		—		—			—			(34,269	)
Early extinguishment of debt		—			(22,020	)		—		—			—			(22,020	)
Deferred Purchase Price Obligation		(15,825	)		—			—		—			—			(15,825	)
(Loss) income before income     taxes and loss from equity     method investees		(16,117	)		(56,289	)		68,532		18,819			—			14,945
Income tax expense		(241	)		—			—		—			—			(241	)
Loss from equity method     investees		—			—			—		(4,041	)		—			(4,041	)
Equity in earnings of consolidated     subsidiaries		27,021			83,310			—		—			(110,331	)		—
Net income	$	10,663		$	27,021		$	68,532	$	14,778		$	(110,331	)	$	10,663

Condensed Consolidating Statements of Cash Flows. Statements of cash flows for the six months ended June 30, 2018 and 2017 follow.

	Six months ended June 30, 2018
	SMLP			Co-Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating adjustments			Total
	(In thousands)
Cash flows from operating     activities:
Net cash (used in) provided by     operating activities	$	(68	)	$	(27,877	)	$	103,965		$	34,029		$	—		$	110,049
Cash flows from investing     activities:
Capital expenditures		(972	)		—			(85,187	)		(4,235	)		—			(90,394	)
Proceeds from asset sales		—			—			—			496			—			496
Other, net		(306	)		—			—			—			—			(306	)
Advances to affiliates		—			(66,985	)		(14,329	)		(29,820	)		111,134			—
Net cash used in     investing activities		(1,278	)		(66,985	)		(99,516	)		(33,559	)		111,134			(90,204	)
Cash flows from financing     activities:
Distributions to common unitholders		(90,269	)		—			—			—			—			(90,269	)
Distributions to Series A Preferred     unitholders		(14,250	)		—			—			—			—			(14,250	)
Borrowings under Revolving Credit     Facility		—			148,000			—			—			—			148,000
Repayments under Revolving Credit     Facility		—			(53,000	)		—			—			—			(53,000	)
Debt issuance costs		—			(121	)		—			—			—			(121	)
Other, net		(2,779	)		—			(589	)		(55	)		—			(3,423	)
Advances from affiliates		111,134			—			—			—			(111,134	)		—
Net cash provided by (used in)     financing activities		3,836			94,879			(589	)		(55	)		(111,134	)		(13,063	)
Net change in cash and cash     equivalents		2,490			17			3,860			415			—			6,782
Cash and cash equivalents,     beginning of period		126			75			1,138			91			—			1,430
Cash and cash equivalents,     end of period	$	2,616		$	92		$	4,998		$	506		$	—		$	8,212

	Six months ended June 30, 2017
	SMLP			Co-Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating adjustments			Total
	(In thousands)
Cash flows from operating     activities:
Net cash provided by (used in)     operating activities	$	424		$	(32,466	)	$	114,863		$	38,520		$	—		$	121,341
Cash flows from investing     activities:
Capital expenditures		(6,412	)		—			(23,578	)		(15,922	)		—			(45,912	)
Contributions to equity method     investees		—			—			—			(15,649	)		—			(15,649	)
Other, net		(521	)		—			—			—			—			(521	)
Advances to affiliates		7,635			23,020			(95,361	)		—			64,706			—
Net cash provided by (used in)     investing activities		702			23,020			(118,939	)		(31,571	)		64,706			(62,082	)
Cash flows from financing     activities:
Distributions to unitholders		(89,029	)		—			—			—			—			(89,029	)
Borrowings under Revolving Credit     Facility		—			112,500			—			—			—			112,500
Repayments under Revolving Credit     Facility		—			(269,500	)		—			—			—			(269,500	)
Debt issuance costs		—			(15,613	)		—			—			—			(15,613	)
Payment of redemption and call     premiums on senior notes		—			(17,913	)		—			—			—			(17,913	)
Proceeds from ATM Program     issuances, net of costs		17,259			—			—			—			—			17,259
Contribution from General Partner		465			—			—			—			—			465
Issuance of senior notes		—			500,000			—			—			—			500,000
Tender and redemption of senior     notes		—			(300,000	)		—			—			—			(300,000	)
Other, net		(2,632	)		—			372			(8	)		—			(2,268	)
Advances from affiliates		72,341			—			—			(7,635	)		(64,706	)		—
Net cash (used in) provided by    financing activities		(1,596	)		9,474			372			(7,643	)		(64,706	)		(64,099	)
Net change in cash and cash     equivalents		(470	)		28			(3,704	)		(694	)		—			(4,840	)
Cash and cash equivalents,     beginning of period		698			51			5,768			911			—			7,428
Cash and cash equivalents, end of     period	$	228		$	79		$	2,064		$	217		$	—		$	2,588