PLC, since July 30, 2010, the date of acquisition, in our NGL Logistics segment. The acquisition of an
additional 50% interest in Black Lake brought our ownership interest in Black Lake to 100%. Prior to our
acquisition of an additional 50% interest in Black Lake, we accounted for Black Lake under the equity
method of accounting. Subsequent to this transaction we account for Black Lake as a consolidated
subsidiary.
Includes the results of our Marysville NGL storage facility and our DJ Basin NGL Fractionators since the
dates of acquisition of December 30, 2010 and March 24, 2011, respectively.
(b) On January 1, 2011, we acquired a 33.33% interest in Southeast Texas for $150.0 million, in a transaction
among entities under common control. This transfer of net assets between entities under common control
was accounted for as if the transfer occurred at the beginning of the period, and prior years were
retrospectively adjusted to furnish comparative information similar to the pooling method. Accordingly,
our consolidated financial statements have been adjusted to include the historical results of our 33.33%
interest in Southeast Texas for the years ended December 31, 2010 and 2009.
(c) We utilize commodity derivative instruments to provide stability to distributable cash flows for our
proportionate ownership in East Texas as well as all other natural gas services assets. We do not utilize
commodity derivative instruments for the proportionate interest in East Texas that is owned by DCP
Midstream, LLC. As such, the portion of East Texas owned by DCP Midstream, LLC is unhedged. Our
consolidated results depict 75% of East Texas unhedged in all periods prior to the second quarter of 2009
and 49.9% of East Texas unhedged for all periods subsequent to the first quarter of 2009 corresponding
with DCP Midstream, LLC’s ownership interest in East Texas in each period.
(d) Includes the effect of the acquisition of the NGL Hedge, contributed by DCP Midstream, LLC, in April
2009. The NGL Hedge was a fixed price natural gas liquids derivative by NGL component, which
commenced in April 2009 and expired in March 2010. The NGL Hedge was for a total of 1.9 million
barrels at $66.72 per barrel.
(e) Gross margin consists of total operating revenues, including commodity derivative activity, less purchases
of natural gas, propane and NGLs, and segment gross margin for each segment consists of total operating
revenues for that segment, less commodity purchases for that segment. Please read “How We Evaluate Our
Operations” above.
(f) Includes our proportionate share of the throughput volumes and NGL production of Collbran, Jackson
Pipeline Company, or Jackson, East Texas, Discovery and Southeast Texas and our proportionate earnings
of Discovery and Southeast Texas. Earnings for Discovery include the accretion of the net difference
between the carrying amount of the investment and the underlying equity of the investment.
For periods prior to July 30, 2010, includes our 50% share of the throughput volumes and earnings for
Black Lake. Black Lake’s earnings included the accretion of the net difference between the carrying
amount of the investment and the underlying equity of the investment.
Year Ended December 31, 2011 vs. Year Ended December 31, 2010
Included in the consolidated results of operations are the noncontrolling interests which represent the third
party or affiliate interests in the non-wholly-owned entities that we consolidate, which include East Texas and
Collbran, among others. Our results of operations reflect 100% of all consolidated assets, including
noncontrolling interests.
Total Operating Revenues
— Total operating revenues increased in 2011 compared to 2010 primarily as a
result of the following:
• $160.7 million increase primarily as a result of our acquisition of Atlantic Energy, as well as higher
propane prices for our Wholesale Propane Logistics segment;
• $91.7 million increase primarily attributable to higher crude and NGL prices and the East Texas
recovery settlement, partially offset by reduced volumes on our Pelico system;
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