Reportable Segments

3 Months Ended

Mar. 31, 2012

Reportable Segments [Abstract]

Reportable Segments

REPORTABLE SEGMENTS:

Our financial statements reflect five reportable segments, which conduct their business exclusively in the United States of America, as follows:

•intrastate natural gas transportation and storage;

•interstate natural gas transportation;

•midstream;

•NGL transportation and services; and

•retail propane and other retail propane related operations.

Intersegment and intrasegment transactions are generally based on transactions made at market-related rates. Consolidated revenues and expenses reflect the elimination of all material intercompany transactions.

Revenues from our intrastate transportation and storage segment are primarily reflected in natural gas sales and gathering, transportation and other fees. Revenues from our interstate transportation segment are primarily reflected in gathering, transportation and other fees. Revenues from our midstream segment are primarily reflected in natural gas sales, NGL sales and gathering, transportation and other fees. Revenues from our NGL transportation and services segment are primarily reflected in NGL sales and gathering, transportation and other fees. Revenues from our retail propane and other retail propane related segment are primarily reflected in retail propane sales and other.

We previously reported segment operating income as a measure of segment performance. We have revised certain reports provided to our chief operating decision maker to assess the performance of our business to reflect Segment Adjusted EBITDA. We define Segment Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization and other non-cash items, such as non-cash compensation expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, non-cash impairment charges, and other non-operating income or expense items. Unrealized gains and losses on commodity risk management activities includes unrealized gains and losses on commodity derivatives and inventory fair value adjustments (excluding lower of cost or market adjustments). Segment Adjusted EBITDA reflects amounts for less than wholly owned subsidiaries and unconsolidated affiliates based on the Partnership's proportionate ownership. Based on the change in our segment performance measure, we have recast the presentation of our segment results for the prior year to be consistent with the current year presentation.

The following tables present the financial information by segment for the following periods:

	Three Months Ended March 31,
	2012			2011
Revenues:
Intrastate natural gas transportation and storage:
Revenues from external customers	$	446,796		$	588,678
Intersegment revenues	35,257			183,081
	482,053			771,759
Interstate natural gas transportation — revenues from external customers	128,276			105,101
Midstream:
Revenues from external customers	454,099			413,195
Intersegment revenues	100,459			238,061
	554,558			651,256
NGL transportation and services:
Revenues from external customers	154,268			—
Intersegment revenues	13,283			—
	167,551			—
Retail propane and other retail propane related — revenues from external customers	80,006			557,215
All other:
Revenues from external customers	42,415			23,388
Intersegment revenues	8,157			14,427
	50,572			37,815
Eliminations	(157,156		)	(435,569		)
Total revenues	$	1,305,860		$	1,687,577

	Three Months Ended March 31,
	2012			2011
Segment Adjusted EBITDA
Intrastate transportation and storage	$	192,269		$	172,815
Interstate transportation	112,980			80,110
Midstream	100,288			75,376
NGL transportation and services	35,217			—
Retail propane and other retail propane related	88,795			142,355
All other	6,513			643
Total Segment Adjusted EBITDA	536,062			471,299
Depreciation and amortization	(101,917		)	(95,964		)
Interest expense, net of interest capitalized	(136,820		)	(107,240		)
Gain on deconsolidation of Propane Business	1,055,944			—
Gains on non-hedged interest rate derivatives	27,895			1,779
Income tax expense	(14,123		)	(10,597		)
Non-cash unit-based compensation expense	(10,709		)	(10,189		)
Unrealized (losses) gains on commodity risk management activities	(85,626		)	7,092
Losses on disposal of assets	(1,024		)	(1,726		)
Loss on extinguishment of debt	(115,023		)	—
Adjusted EBITDA attributable to noncontrolling interest	15,247			—
Proportionate share of unconsolidated affiliates' interest, depreciation, amortization, non-cash compensation expense, loss on extinguishment of debt and taxes	(44,487		)	(7,470		)
Other, net	678			218
Net income	$	1,126,097		$	247,202

	March 31, 2012		December 31, 2011
Total assets:
Intrastate natural gas transportation and storage	$	4,743,531	$	4,784,630
Interstate natural gas transportation	5,630,371		3,661,098
Midstream	2,783,202		2,665,610
NGL transportation and services	2,750,615		2,360,095
Retail propane and other retail propane related	1,230,683		1,783,770
All other	269,388		263,413
Total	$	17,407,790	$	15,518,616