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Table of Contents
 Substantially all of the increase was due to the
consolidation of Southern Union's transportation and storage business beginning March 26, 2012.
 Substantially all of the increase was due
to the consolidation of Southern Union's transportation and storage business beginning March 26, 2012.
 Adjusted EBITDA related to unconsolidated affiliates increased primarily due to our acquisition of a
50% interest in Citrus which contributed $228 million during the year ended December 31, 2012. In addition, Adjusted EBITDA related to FEP increased $24
million primarily due to an increase in demand fees as a result of incremental volume commitments in our shippers' take or pay contracts.
Midstream
Years Ended December 31,
2012
2011
Change
Gathered volumes (MMBtu/d):
ETP legacy assets 2,364,133
2,020,126
344,007
Southern Union gathering and processing 510,061
—
510,061
NGLs produced (Bbls/d):
ETP legacy assets 79,640
54,246
25,394
Southern Union gathering and processing 41,163
—
41,163
Equity NGLs produced (Bbls/d):
ETP legacy assets 17,314
16,385
929
Southern Union gathering and processing 7,437
—
7,437
Revenues $1,953
$1,483
$470
Cost of products sold 1,273
988
285
Gross margin 680
495
185
Operating expenses, excluding non-cash compensation expense (165)
(87)
(78)
Selling, general and administrative, excluding non-cash compensation expense (56)
(10)
(46)
Adjusted EBITDA related to discontinued operations 15
23
(8)
Adjusted EBITDA related to unconsolidated affiliates (7)
—
(7)
Segment Adjusted EBITDA $ 467
$421
$ 46
 NGL production increased primarily due to increased inlet volumes as a result of more production by our customers in the Eagle Ford Shale area
and increased capacity from recent completed projects. The increase in equity NGL production was primarily due to the higher production partially offset by a
higher concentration of volumes billed under fee-based contracts in 2012 as compared to 2011. Additionally, in conjunction with the Holdco Transaction,
Southern Union's gathering and processing operations were retrospectively consolidated into our midstream segment beginning March 26, 2012. For the period
from March 26, 2012 to December 31, 2012, NGL production averaged 41,163 Bbls/d for Southern Union's gathering and processing operations.
. The components of our midstream segment gross margin were as follows:
Years Ended December 31,
2012
2011
Change
Gathering and processing fee-based revenues $339
$ 253
$86
Non fee-based contracts and processing 335
234
101
Other 6
8
(2)
Total gross margin $ 680
$495
$185
83