Discontinued Operations and Divestitures

12 Months Ended

Dec. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Divestitures

Discontinued Operations and Divestitures

On July 31, 2012, the Partnership completed the sale of its East Texas and Northwest Louisiana natural gas gathering and processing assets owned by Prism Gas Systems I, L.P. (“Prism Gas”), a wholly-owned subsidiary of the Partnership, and other natural gas gathering and processing assets also owned by the Partnership to a subsidiary of CenterPoint Energy Inc. (NYSE: CNP) (“CenterPoint”). The Partnership received net cash proceeds from the sale of $273,269.  The asset sale included the Partnership’s 50% operating interest in Waskom Gas Processing Company (“Waskom”).  A subsidiary of CenterPoint owned the other 50% percent interest.  

Additionally, on September 18, 2012, the Partnership completed the sale of its interest in Matagorda Offshore Gathering System (“Matagorda”) and Panther Interstate Pipeline Energy, LLC (“PIPE”) to a private investor group for $1,530.  

The assets described above collectively are referred to herein as the Prism Assets.

The Partnership classified the results of operations of the Prism Assets which were previously presented as a component of the Natural Gas Services segment, as discontinued operations in the consolidated and condensed statements of operations for all periods presented. The assets and liabilities to be sold met the accounting criteria to be classified as held for sale and were aggregated and reported on separate lines in the consolidated and condensed balance sheet at December 31, 2011.

The assets and liabilities classified held for sale as of December 31, 2011 were as follows:

	2011
Assets
Inventories	$	486
Property, plant and equipment	78,324
Accumulated depreciation	(18,438		)
Goodwill	28,931
Investment in unconsolidated entities	107,549
Other assets, net	15,935
Assets held for sale	$	212,787
Liabilities
Other long-term obligations	$	501
Liabilities held for sale	$	501

The Prism Assets’ operating results, which are included in income from discontinued operations, were as follows:

	Year Ended December 31,
	2012			2011			2010
Total revenues from third parties1	$	66,876		$	121,338		$	112,477
Total costs and expenses and other, net, excluding depreciation and amortization	(64,562		)	(115,957		)	(110,061		)
Depreciation and amortization	(2,320		)	(5,512		)	(4,452		)
Other operating income (loss)2	61,858			—			(92		)
Equity in earnings of unconsolidated entities3	4,611			9,412			9,792
Income from discontinued operations before income taxes	66,463			9,281			7,664
Income tax (expense) benefit	(1,598		)	111			397
Income from discontinued operations, net of income taxes	$	64,865		$	9,392		$	8,061

¹ Total revenues from third parties excludes intercompany revenues of $26,431, $67,141, and $56,390 for the years ended December 31, 2012, 2011, 2010, respectively.

² The Partnership recognized a gain on the sale of the Prism Assets of $61,848 in income from discontinued operations for the year ended December 31, 2012.

³  Represents equity in earnings of Waskom, Matagorda, and PIPE for the years ended December 31, 2012, 2011 and 2010.