Other income — affiliates
— Other income — affiliates increased due to a $3.0 million payment received
in the second quarter of 2010 from Spectra Energy, a supplier for our Wholesale Propane Logistics segment,
related to an amendment of a supply agreement to shorten the term of the agreement by two years.
Earnings from Unconsolidated Affiliates
— Earnings from unconsolidated affiliates increased in 2010
compared to 2009, primarily as a result of increased earnings from Discovery and Southeast Texas. The 2010
results reflect business interruption insurance recoveries at Southeast Texas. Settlements related to our
commodity derivatives on unconsolidated affiliates are included in segment gross margin.
Net income attributable to noncontrolling interests
— Net income attributable to noncontrolling interests
includes the impact of organic growth from our Piceance Basin expansion project, offset by volume
curtailments due to plant shutdowns and producer wellhead freeze offs as a result of near record cold weather in
the first quarter, increased fuel consumption and differences in gas quality at East Texas in 2010. 2009 results
include the first quarter impact of a third party owned pipeline rupture, resulting in a fire at East Texas.
Results of Operations — Natural Gas Services Segment
This segment consists of our Northern Louisiana system, our Southern Oklahoma system, our Wyoming
system, our Michigan system, our 33.33% interest in the Southeast Texas system, our 50.1% interest in the East
Texas system, our 75% interest in the Colorado system, and our 40% limited liability company interest in
Discovery:
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:
Sales of natural gas, NGLs and
condensate . . . . . . . . . . . . . . . . . . . . . . . . $ 776.1 $ 684.2 $ 562.8 $ 91.9 13% $121.4 22%
Transportation, processing and other . . . . . 111.2 102.1 87.3
9.1
9% 14.8 17%
Losses from commodity derivative
activity(d) . . . . . . . . . . . . . . . . . . . . . . . .
(5.5)
(7.6) (66.4)
(2.1) (28)% 58.8 89%
Total operating revenues . . . . . . . . . . . . . 881.8 778.7 583.7 103.1 13% 195.0 33%
Purchases of natural gas and NGLs . . . . . . . . . 644.9 583.6 474.0 61.3 11% 109.6 23%
Segment gross margin(e) . . . . . . . . . . . . . . . . . 236.9 195.1 109.7 41.8 21% 85.4 78%
Operating and maintenance expense . . . . . .
(74.4) (63.5) (58.2) 10.9 17% 5.3
9%
Depreciation and amortization expense . . .
(69.9) (69.1) (61.9) 0.8
1% 7.2 12%
Other income . . . . . . . . . . . . . . . . . . . . . . . . —
1.0 —
(1.0) (100)% 1.0 100%
Earnings from unconsolidated
affiliates(f) . . . . . . . . . . . . . . . . . . . . . . . . 36.9 37.4 25.0
(0.5)
(1)% 12.4 50%
Segment net income . . . . . . . . . . . . . . . . . . . . 129.5 100.9 14.6 28.6 28% 86.3 591%
Segment net income attributable to
noncontrolling interests . . . . . . . . . . . . . .
(18.8)
(9.2)
(8.3) 9.6 104% 0.9 11%
Segment net income attributable to
partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 110.7 $ 91.7 $ 6.3 $ 19.0 21% $ 85.4
*
Other data:
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%
* 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.
(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
75