Reportable Segments

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenues:
Intrastate natural gas transportation and storage:
Revenues from external customers	$	452,237		$	643,653		$	899,033		$	1,232,331
Intersegment revenues	42,244			28,841			77,501			211,922
	494,481			672,494			976,534			1,444,253
Interstate natural gas transportation — revenues from external customers	126,900			104,850			255,176			209,951
Midstream:
Revenues from external customers	460,077			513,584			914,176			926,779
Intersegment revenues	96,577			104,351			197,036			342,412
	556,654			617,935			1,111,212			1,269,191
NGL transportation and services:
Revenues from external customers	147,851			93,686			302,119			93,686
Intersegment revenues	12,626			5,134			25,909			5,134
	160,477			98,820			328,028			98,820
Retail propane and other retail propane related — revenues from external customers	12,966			243,973			92,972			801,188
All other:
Revenues from external customers	40,283			28,349			82,698			51,737
Intersegment revenues	28,921			26,472			37,078			40,899
	69,204			54,821			119,776			92,636
Eliminations	(180,368		)	(164,798		)	(337,524		)	(600,367		)
Total revenues	$	1,240,314		$	1,628,095		$	2,546,174		$	3,315,672

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Segment Adjusted EBITDA
Intrastate transportation and storage	$	156,948		$	171,549		$	349,217		$	344,364
Interstate transportation	184,419			83,498			297,399			163,608
Midstream	93,375			95,220			193,663			170,596
NGL transportation and services	38,963			24,696			74,180			24,696
Retail propane and other retail propane related	1,704			12,236			90,499			154,591
All other	(9,059		)	936			(2,546		)	1,579
Total	466,350			388,135			1,002,412			859,434
Depreciation and amortization	(99,102		)	(104,972		)	(201,019		)	(200,936		)
Interest expense, net of interest capitalized	(134,310		)	(116,466		)	(271,130		)	(223,706		)
Gain on deconsolidation of Propane Business	765			—			1,056,709			—
Gains (losses) on non-hedged interest rate derivatives	(35,917		)	2,111			(8,022		)	3,890
Non-cash unit-based compensation expense	(10,283		)	(10,600		)	(20,992		)	(20,789		)
Allowance for equity funds used during construction	123			1,201			227			69
Unrealized gains (losses) on commodity risk management activities	14,652			562			(70,974		)	7,654
Gains (losses) on disposal of assets	146			(528		)	(878		)	(2,254		)
Loss on extinguishment of debt	—			—			(115,023		)	—
Adjusted EBITDA attributable to noncontrolling interest	15,810			10,585			31,057			10,585
Proportionate share of unconsolidated affiliates' interest, depreciation, amortization, non-cash compensation expense, loss on debt extinguishment and taxes	(96,623		)	(8,251		)	(141,110		)	(15,721		)
Other	2,200			622			2,774			1,972
Income before income tax expense	123,811			162,399			$	1,264,031		$	420,198

	June 30, 2012		December 31, 2011
Total assets:
Intrastate natural gas transportation and storage	$	4,706,298	$	4,784,630
Interstate natural gas transportation	5,606,457		3,661,098
Midstream	2,980,517		2,665,610
NGL transportation and services	3,226,953		2,360,095
Retail propane and other retail propane related	—		1,783,770
All other	1,339,194		263,413
Total	$	17,859,419	$	15,518,616