Business Segment Information

6 Months Ended

Jun. 30, 2011

Business Segment Information [Abstract]

Business Segment Information

(3) Business Segment Information

Our operations are conducted in two principal business segments: (i) pipeline transportation services and (ii) oil and gas exploration and production. The business segments are managed jointly primarily due to the size of our employee base and the scope of our operations. Management uses earnings before interest expense and income taxes (“EBIT”), a non-GAAP financial measure, to assess the operating results and effectiveness of our business segments, which consist of our consolidated businesses and investments. We believe EBIT is useful to our investors because it allows them to evaluate our operating performance using the same performance measure analyzed internally by management. EBIT is adjusted for: (i) items that do not impact our income or loss from continuing operations, such as the impact of accounting changes, (ii) income taxes and (iii) interest expense (or income). We exclude interest expense (or income) and other expenses or income not pertaining to the operations of our segments from this measure so that investors may evaluate our current operating results without regard to our financing methods or capital structure. We understand that EBIT may not be comparable to measurements used by other companies. Additionally, EBIT should be considered in conjunction with net income (loss) and other performance measures such as operating cash flows.

Following is a reconciliation of our EBIT (by business segment) for the three months ended June 30, 2011, and at June 30, 2011:

	Three Months Ended June 30, 2011
	Segment
				Oil and Gas
	Pipeline			Exploration &			Corporate &
	Transportation			Production			Other(1)			Total
Revenues	$	267,375		$	353,027		$	—		$	620,402
Operation cost(2)		374,088			411,453			113,565			899,106
Depletion, depreciation and amortization		99,319			36,657			852			136,828
EBIT	$	(206,032	)	$	(95,083	)	$	(114,417	)	$	(415,532	)
Capital expenditures	$	—		$	20,036		$	—		$	20,036
Identifiable assets(3)	$	3,313,260		$	1,458,049		$	285,142		$	5,056,451

(1)	Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses). It also includes as identifiable assets corporate available cash of $0.03 million.
(2)	Allocable general and administrative costs are allocated based on revenue.
(3)	Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.

Following is a reconciliation of our EBIT (by business segment) for the three months ended June 30, 2010, and at June 30, 2010:

	Three Months Ended June 30, 2010
	Segment
				Oil and Gas
	Pipeline			Exploration &			Corporate &
	Transportation			Production			Other(1)			Total
Revenues	$	462,392		$	21,199		$	—		$	483,591
Operation cost(2)		608,675			19,898			106,098			734,671
Depletion, depreciation and amortization		105,043			22,471			1,341			128,855
EBIT	$	(251,326	)	$	(21,170	)	$	(107,439	)	$	(379,935	)
Capital expenditures	$	—		$	—		$	—		$	—
Identifiable assets(3)	$	4,341,157		$	216,829		$	211,362		$	4,769,348

(1)	Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses). It also includes as identifiable assets corporate available cash of $0.5 million.
(2)	Allocable general and administrative costs are allocated based on revenue.
(3)	Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.

Following is a reconciliation of our EBIT (by business segment) for the six months ended June 30, 2011, and at June 30, 2011:

	Six Months Ended June 30, 2011
	Segment
				Oil and Gas
	Pipeline			Exploration &			Corporate &
	Transportation			Production			Other(1)			Total
Revenues	$	610,005		$	702,731		$	—		$	1,312,736
Operation cost(2)		805,652			855,904			223,804			1,885,360
Depletion, depreciation and amortization		202,491			79,182			1,863			283,536
EBIT	$	(398,138	)	$	(232,355	)	$	(225,667	)	$	(856,160	)
Capital expenditures	$	—		$	23,800		$	—		$	23,800
Identifiable assets(3)	$	3,313,260		$	1,458,049		$	285,142		$	5,056,451

(1)	Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses). It also includes as identifiable assets corporate available cash of $0.03 million.
(2)	Allocable general and administrative costs are allocated based on revenue.
(3)	Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.

Following is a reconciliation of our EBIT (by business segment) for the six months ended June 30, 2010, and at June 30, 2010:

	Six Months Ended June 30, 2010
	Segment
				Oil and Gas
	Pipeline			Exploration &			Corporate &
	Transportation			Production			Other(1)			Total
Revenues	$	891,479		$	40,221		$	—		$	931,700
Operation cost(2)		1,323,395			59,047			209,005			1,591,447
Depletion, depreciation and amortization		210,085			33,847			2,769			246,701
EBIT	$	(642,001	)	$	(52,673	)	$	(211,774	)	$	(906,448	)
Capital expenditures	$	—		$	—		$	—		$	—
Identifiable assets(3)	$	4,341,157		$	216,829		$	211,362		$	4,769,348

(1)	Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses). It also includes as identifiable assets corporate available cash of $0.5 million.
(2)	Allocable general and administrative costs are allocated based on revenue.
(3)	Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.