Energy Transfer 2013 Annual Report Download - page 76

Table of Contents
On January 12, 2012, we received an equity investment in AmeriGas as partial consideration for the contribution of our Propane Business to AmeriGas. As a
result, our all other segment includes eleven days of consolidated activity related to our Propane Business for the year ended December 31, 2012. Amounts
attributable to our investment in AmeriGas are reflected above in “Supplemental Information on Unconsolidated Affiliates.”
We evaluate segment performance based on Segment Adjusted EBITDA, which we believe is an important performance measure of the core profitability of our
operations. This measure represents the basis of our internal financial reporting and is one of the performance measures used by senior management in
deciding how to allocate capital resources among business segments.
The tables below identify the components of Segment Adjusted EBITDA, which is calculated as follows:
• . These amounts represent the amounts included in our consolidated
financial statements that are attributable to each segment.
• . These are the unrealized amounts that are included in cost of products sold to
calculate gross margin. These amounts are not included in Segment Adjusted EBITDA; therefore, the unrealized losses are added back and the unrealized
gains are subtracted to calculate the segment measure.
•. These amounts represent the total non-cash compensation recorded in operating expenses and selling, general and
administrative expenses. This expense is not included in Segment Adjusted EBITDA and therefore is added back to calculate the segment measure.
•. These amounts represent our proportionate share of the Adjusted EBITDA of our unconsolidated
affiliates. Amounts reflected are calculated consistently with our definition of Adjusted EBITDA.
For additional information regarding our business segments, see “Item 1. Business” and Notes 1 and 14 to our consolidated financial statements.
Intrastate Transportation and Storage
Years Ended December 31,
2013
2012
Change
Natural gas transported (MMBtu/d) 9,455,878
9,849,900
(394,022)
Revenues $2,452
$2,191
$261
Cost of products sold 1,737
1,394
343
Gross margin 715
797
(82)
Unrealized (gains) losses on commodity risk management activities (39)
19
(58)
Operating expenses, excluding non-cash compensation expense (189)
(191)
2
Selling, general and administrative expenses, excluding non-cash compensation expense (23)
(25)
2
Adjusted EBITDA related to unconsolidated affiliates —
1
(1)
Segment Adjusted EBITDA $464
$ 601
$(137)
 Transported volumes decreased due to the cessation of certain long-term contracts, the impact of which was partially offset by the impact from a
more favorable pricing environment. The average spot price at the Houston Ship Channel for 2013 increased to $3.70/MMBtu from $2.70/MMBtu for 2012,
while the average basis differential between West Texas and the Houston Ship Channel increased from $0.02/MMBtu in 2012 to $0.05/MMBtu in 2013.
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