Results of Operations
Consolidated Overview
The following table and discussion is a summary of our consolidated results of operations for the three
years ended December 31, 2011, 2010 and 2009. The results of operations by segment are discussed in further
detail following this consolidated overview discussion:
Year Ended December 31,
Variance
2011 vs. 2010
Variance
2010 vs. 2009
2011
(a)(c)
2010
(a)(b)(c)
2009
(a)(b)(c)
Increase
(Decrease) Percent
Increase
(Decrease) Percent
(Millions, except as indicated)
Operating revenues:
Natural Gas Services(d) . . . . . . . . . . . . . . . . $ 881.8 $ 778.7 $ 583.7 $ 103.1 13% $195.0 33%
NGL Logistics . . . . . . . . . . . . . . . . . . . . . . . 56.6 17.6 10.5 39.0 222% 7.1 68%
Wholesale Propane Logistics . . . . . . . . . . . . 633.6 473.2 348.2 160.4 34% 125.0 36%
Intra-segment eliminations . . . . . . . . . . . . . .
(2.2) — —
(2.2) * — —%
Total operating revenues . . . . . . . . . . . . . 1,569.8 1,269.5 942.4 300.3 24% 327.1 35%
Gross margin(e):
Natural Gas Services . . . . . . . . . . . . . . . . . . 236.9 195.1 109.7 41.8 21% 85.4 78%
NGL Logistics . . . . . . . . . . . . . . . . . . . . . . . 52.0 12.9 7.6 39.1 303% 5.3 70%
Wholesale Propane Logistics . . . . . . . . . . . . 51.1 28.9 48.9 22.2 77% (20.0) (41)%
Total gross margin . . . . . . . . . . . . . . . . . . 340.0 236.9 166.2 103.1 44% 70.7 43%
Operating and maintenance expense . . . . . . (105.4) (79.8) (69.7) 25.6 32% 10.1 14%
Depreciation and amortization expense . . . .
(81.0) (73.7) (64.9) 7.3 10% 8.8 14%
General and administrative expense . . . . . .
(37.3) (33.7) (32.3) 3.6 11% 1.4
4%
Step acquisition — equity interest
re-measurement gain . . . . . . . . . . . . . . . . —
9.1 —
(9.1) (100)% 9.1 100%
Other income . . . . . . . . . . . . . . . . . . . . . . . .
0.5
1.0 —
(0.5) (50)% 1.0 100%
Other income — affiliates . . . . . . . . . . . . . . —
3.0 —
(3.0) (100)% 3.0 100%
Earnings from unconsolidated
affiliates(f) . . . . . . . . . . . . . . . . . . . . . . . . 36.9 38.2 26.9
(1.3)
(3)% 11.3 42%
Interest income . . . . . . . . . . . . . . . . . . . . . . . — — 0.3 — —% (0.3) (100)%
Interest expense . . . . . . . . . . . . . . . . . . . . . .
(33.9) (29.1) (28.3) 4.8 16% 0.8
3%
Income tax expense . . . . . . . . . . . . . . . . . . .
(0.6)
(0.3)
(0.6) 0.3 100% (0.3) (50)%
Net income attributable to noncontrolling
interests . . . . . . . . . . . . . . . . . . . . . . . . . .
(18.8)
(9.2)
(8.3) 9.6 104% 0.9 11%
Net income (loss) attributable to partners . . . . $ 100.4 $ 62.4 $ (10.7) $ 38.0 61% $ 73.1
*
Other data:
Non-cash commodity derivative
mark-to-market . . . . . . . . . . . . . . . . . . . . . $ 22.7 $ (5.4) $ (83.4) $ 28.1 * $ 78.0 94%
Natural gas throughput (MMcf/d)(f) . . . . . . 1,209 1,272 1,152
(63)
(5)% 120 10%
NGL gross production (Bbls/d)(f) . . . . . . . . 39,426 40,962 34,708 (1,536)
(4)% 6,254 18%
NGL pipelines throughput (Bbls/d)(f) . . . . . 62,555 38,282 30,160 24,273 63% 8,122 27%
Propane sales volume (Bbls/d) . . . . . . . . . . . 24,743 22,350 22,278 2,393 11% 72 —%
* Percentage change is not meaningful.
(a) Includes the results of certain companies that held natural gas gathering and treating assets purchased from
MichCon Pipeline Company since November 24, 2009, the date of acquisition, in our Natural Gas Services
segment.
Includes the results of Atlantic Energy, since July 30, 2010, the date of acquisition, in our Wholesale
Propane Logistics segment.
Includes the results of our Wattenberg pipeline acquired from Buckeye Partners, L.P, since January 28,
2010, the date of acquisition, and an additional 50% interest in Black Lake acquired from an affiliate of BP
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