CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Balance sheets as of September 30, 2018 and December 31, 2017 follow.

	September 30, 2018
	SMLP		Co-Issuers		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating adjustments			Total
	(In thousands)
Assets
Cash and cash equivalents	$	29	$	3	$	330	$	8	$	—		$	370
Accounts receivable		22		—		74,766		10,670		—			85,458
Other current assets		843		—		2,922		595		—			4,360
Due from affiliate		—		—		513,867		68,121		(581,988	)		—
Total current assets		894		3		591,885		79,394		(581,988	)		90,188
Property, plant and equipment, net		5,134		—		1,563,950		342,546		—			1,911,630
Intangible assets, net		—		—		255,317		25,890		—			281,207
Goodwill		—		—		16,211		—		—			16,211
Investment in equity method investees		—		—		—		660,254		—			660,254
Other noncurrent assets		3,320		9,184		6,062		—		—			18,566
Investment in subsidiaries		2,082,686		3,432,198		—		—		(5,514,884	)		—
Total assets	$	2,092,034	$	3,441,385	$	2,433,425	$	1,108,084	$	(6,096,872	)	$	2,978,056

Liabilities and Partners' Capital
Trade accounts payable	$	219	$	—	$	18,523	$	3,827	$	—		$	22,569
Accrued expenses		725		—		16,051		1,571		—			18,347
Due to affiliate		413,900		168,101		—		—		(581,988	)		13
Deferred revenue		—		—		10,716		436		—			11,152
Ad valorem taxes payable		14		—		7,802		407		—			8,223
Accrued interest		—		15,285		—		—		—			15,285
Accrued environmental remediation		—		—		—		2,702		—			2,702
Other current liabilities		5,386		—		4,488		514		—			10,388
Total current liabilities		420,244		183,386		57,580		9,457		(581,988	)		88,679
Long-term debt		—		1,175,313		—		—		—			1,175,313
Deferred Purchase Price Obligation		416,718		—		—		—		—			416,718
Noncurrent deferred revenue		—		—		37,802		1,822		—			39,624
Noncurrent accrued environmental remediation		—		—		—		1,182		—			1,182
Other noncurrent liabilities		4,057		—		1,437		31		—			5,525
Total liabilities		841,019		1,358,699		96,819		12,492		(581,988	)		1,727,041

Total partners' capital		1,251,015		2,082,686		2,336,606		1,095,592		(5,514,884	)		1,251,015
Total liabilities and partners' capital	$	2,092,034	$	3,441,385	$	2,433,425	$	1,108,084	$	(6,096,872	)	$	2,978,056

	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 Statement of Operations

Statements of operations for the three and nine months ended September 30, 2018 and 2017 follow.

	Three months ended September 30, 2018
	SMLP		Co-Issuers			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating adjustments			Total
	(In thousands)
Revenues:
Gathering services and related fees	$	—	$	—		$	73,014	$	13,413		$	—		$	86,427
Natural gas, NGLs and condensate sales		—		—			34,017		—			—			34,017
Other revenues		—		—			6,806		229			—			7,035
Total revenues		—		—			113,837		13,642			—			127,479
Costs and expenses:
Cost of natural gas and NGLs		—		—			26,879		—			—			26,879
Operation and maintenance		—		—			21,721		2,661			—			24,382
General and administrative		—		—			10,535		1,205			—			11,740
Depreciation and amortization		429		—			22,863		3,451			—			26,743
Loss on asset sales, net		—		—			1		5			—			6
Long-lived asset impairment		—		—			275		1,265			—			1,540
Total costs and expenses		429		—			82,274		8,587			—			91,290
Other income		58		—			—		—			—			58
Interest expense		—		(14,862	)		—		—			—			(14,862	)
Deferred Purchase Price Obligation		37,204		—			—		—			—			37,204
Income (loss) before income taxes and loss from equity method investees		36,833		(14,862	)		31,563		5,055			—			58,589
Income tax benefit		35		—			—		—			—			35
Loss from equity method investees		—		—			—		(1,169	)		—			(1,169	)
Equity in earnings of consolidated subsidiaries		20,587		35,449			—		—			(56,036	)		—
Net income	$	57,455	$	20,587		$	31,563	$	3,886		$	(56,036	)	$	57,455

	Three months ended September 30, 2017
	SMLP			Co-Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating adjustments			Total
	(In thousands)
Revenues:
Gathering services and related fees	$	—		$	—		$	82,152		$	13,918	$	—		$	96,070
Natural gas, NGLs and condensate sales		—			—			22,940			—		—			22,940
Other revenues		—			—			5,877			58		—			5,935
Total revenues		—			—			110,969			13,976		—			124,945
Costs and expenses:
Cost of natural gas and NGLs		—			—			18,177			—		—			18,177
Operation and maintenance		—			—			20,217			2,086		—			22,303
General and administrative		—			—			11,919			1,370		—			13,289
Depreciation and amortization		352			—			25,247			3,328		—			28,927
Transaction costs		—			—			—			—		—			—
(Gain) loss on asset sales, net		—			—			(82	)		542		—			460
Long-lived asset impairment		—			—			696			594		—			1,290
Total costs and expenses		352			—			76,174			7,920		—			84,446
Other income		79			—			—			—		—			79
Interest expense		—			(17,614	)		—			—		—			(17,614	)
Deferred Purchase Price Obligation		70,499			—			—			—		—			70,499
Income (loss) before income taxes and income from equity method investees		70,226			(17,614	)		34,795			6,056		—			93,463
Income tax expense		(176	)		—			—			—		—			(176	)
Income from equity method investees		—			—			—			350		—			350
Equity in earnings of consolidated subsidiaries		23,587			41,201			—			—		(64,788	)		—
Net income	$	93,637		$	23,587		$	34,795		$	6,406	$	(64,788	)	$	93,637

	Nine months ended September 30, 2018
	SMLP			Co-Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating adjustments			Total
	(In thousands)
Revenues:
Gathering services and related fees	$	—		$	—		$	216,371		$	44,002		$	—		$	260,373
Natural gas, NGLs and condensate sales		—			—			92,025			—			—			92,025
Other revenues		—			—			20,042			542			—			20,584
Total revenues		—			—			328,438			44,544			—			372,982
Costs and expenses:
Cost of natural gas and NGLs		—			—			71,549			—			—			71,549
Operation and maintenance		—			—			66,095			7,357			—			73,452
General and administrative		—			—			34,786			4,880			—			39,666
Depreciation and amortization		1,305			—			68,500			10,399			—			80,204
(Gain) loss on asset sales, net		—			—			(74	)		68			—			(6	)
Long-lived asset impairment		—			—			862			1,265			—			2,127
Total costs and expenses		1,305			—			241,718			23,969			—			266,992
Other income		78			—			—			—			—			78
Interest expense		—			(44,821	)		—			—			—			(44,821	)
Deferred Purchase Price Obligation		(53,759	)		—			—			—			—			(53,759	)
(Loss) income before income taxes and loss from equity method investees		(54,986	)		(44,821	)		86,720			20,575			—			7,488
Income tax expense		(88	)		—			—			—			—			(88	)
Loss from equity method investees		—			—			—			(3,703	)		—			(3,703	)
Equity in earnings of consolidated subsidiaries		58,771			103,592			—			—			(162,363	)		—
Net income	$	3,697		$	58,771		$	86,720		$	16,872		$	(162,363	)	$	3,697

	Nine months ended September 30, 2017
	SMLP			Co-Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating adjustments			Total
	(In thousands)
Revenues:
Gathering services and related fees	$	—		$	—		$	252,344		$	46,540		$	—		$	298,884
Natural gas, NGLs and condensate sales		—			—			44,655			—			—			44,655
Other revenues		—			—			18,809			194			—			19,003
Total revenues		—			—			315,808			46,734			—			362,542
Costs and expenses:
Cost of natural gas and NGLs		—			—			36,328			—			—			36,328
Operation and maintenance		—			—			64,405			5,606			—			70,011
General and administrative		—			—			35,283			5,087			—			40,370
Depreciation and amortization		660			—			75,772			9,752			—			86,184
Transaction costs		119			—			—			—			—			119
(Gain) loss on asset sales, net		—			—			(11	)		541			—			530
Long-lived asset impairment		—			—			698			879			—			1,577
Total costs and expenses		779			—			212,475			21,865			—			235,119
Other income		214			—			—			—			—			214
Interest expense		—			(51,883	)		—			—			—			(51,883	)
Early extinguishment of debt		—			(22,020	)		—			—			—			(22,020	)
Deferred Purchase Price Obligation		54,674			—			—			—			—			54,674
Income (loss) before income taxes and loss from equity method investees		54,109			(73,903	)		103,333			24,869			—			108,408
Income tax expense		(417	)		—			—			—			—			(417	)
Loss from equity method investees		—			—			—			(3,691	)		—			(3,691	)
Equity in earnings of consolidated subsidiaries		50,608			124,511			—			—			(175,119	)		—
Net income	$	104,300		$	50,608		$	103,333		$	21,178		$	(175,119	)	$	104,300

Condensed Cash Flow Statement

Statements of cash flows for the nine months ended September 30, 2018 and 2017 follow.

	Nine months ended September 30, 2018
	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	$	3,687		$	(38,590	)	$	148,237		$	53,158		$	—		$	166,492

Cash flows from investing activities:
Capital expenditures		(2,101	)		—			(127,362	)		(7,570	)		—			(137,033	)
Proceeds from asset sales		—			—			—			496			—			496
Other, net		(209	)		—			—			—			—			(209	)
Advances to affiliates		—			(84,148	)		(20,802	)		(46,090	)		151,040			—
Net cash used in investing activities		(2,310	)		(84,148	)		(148,164	)		(53,164	)		151,040			(136,746	)

Cash flows from financing activities:
Distributions to common unitholders		(135,484	)		—			—			—			—			(135,484	)
Distributions to Series A Preferred unitholders		(14,250	)		—			—			—			—			(14,250	)
Borrowings under Revolving Credit Facility		—			202,000			—			—			—			202,000
Repayments under Revolving Credit Facility		—			(79,000	)		—			—			—			(79,000	)
Debt issuance costs		—			(334	)		—			—			—			(334	)
Other, net		(2,780	)		—			(881	)		(77	)		—			(3,738	)
Advances from affiliates		151,040			—			—			—			(151,040	)		—
Net cash (used in) provided by financing activities		(1,474	)		122,666			(881	)		(77	)		(151,040	)		(30,806	)
Net change in cash and cash equivalents		(97	)		(72	)		(808	)		(83	)		—			(1,060	)
Cash and cash equivalents, beginning of period		126			75			1,138			91			—			1,430
Cash and cash equivalents, end of period	$	29		$	3		$	330		$	8		$	—		$	370

	Nine months ended September 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	$	5,707		$	(45,854	)	$	176,442		$	60,202		$	—		$	196,497

Cash flows from investing activities:
Capital expenditures		(995	)		—			(64,413	)		(20,798	)		—			(86,206	)
Proceeds from asset sales		—			—			—			2,300			—			2,300
Contributions to equity method investees		—			—			—			(21,581	)		—			(21,581	)
Other, net		(579	)		—			—			—			—			(579	)
Advances to affiliates		11,768			21,658			(116,254	)		(8,441	)		91,269			—
Net cash provided by (used in) investing activities		10,194			21,658			(180,667	)		(48,520	)		91,269			(106,066	)

Cash flows from financing activities:
Distributions to unitholders		(134,066	)		—			—			—			—			(134,066	)
Borrowings under Revolving Credit Facility		—			177,500			—			—			—			177,500
Repayments under Revolving Credit Facility		—			(319,500	)		—			—			—			(319,500	)
Debt issuance costs		—			(15,891	)		—			—			—			(15,891	)
Payment of redemption and call premiums on senior notes		—			(17,913	)		—			—			—			(17,913	)
Proceeds from ATM Program issuances, net of costs		17,251			—			—			—			—			17,251
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		(2,794	)		—			—			—			—			(2,794	)
Advances from affiliates		103,037			—			—			(11,768	)		(91,269	)		—
Net cash (used in) provided by financing activities		(16,107	)		24,196			—			(11,768	)		(91,269	)		(94,948	)
Net change in cash and cash equivalents		(206	)		—			(4,225	)		(86	)		—			(4,517	)
Cash and cash equivalents, beginning of period		698			51			5,768			911			—			7,428
Cash and cash equivalents, end of period	$	492		$	51		$	1,543		$	825		$	—		$	2,911