Energy Transfer 2015 Annual Report Download - page 82

Table of Contents
   For the year ended December 31, 2015 compared to the prior year, Segment Adjusted EBITDA related to our intrastate
transportation and storage segment decreased due to the net impacts of the following:
• a decrease of $13 million in natural gas sales and other margin (excluding changes in unrealized gains of $8 million) primarily due to a $19 million
decrease in commercial optimization activity as a result of weather driven gains in 2014 not reoccurring in 2015, a $4 million decrease from processing
and producer marketing services on our Houston Pipeline System, offset by $10 million in lower losses due to volume adjustments across our pipeline
system;
• a decrease of $17 million in storage margin, as discussed below; and
• a decrease of $44 million from the sale of retained fuel (excluding changes in unrealized gains of $3 million) due to significantly lower market prices.
The average spot price at the Houston Ship Channel location for the year ended December 31, 2015 decreased by $1.76, or 41%, to $2.57 as compared to
$4.32 for the prior year period; partially offset by
• an increase of $36 million in transportation fees margin primarily due to increased revenue from renegotiated and newly initiated long-term fixed
capacity fee contracts on our Houston Pipeline system;
• a decrease of $2 million in selling, general and administrative expenses primarily due to lower employee-related costs;
• a decrease of $17 million in operating expenses primarily due to a decrease in fuel consumption expense driven by a decrease in fuel market prices.
Storage margin was comprised of the following:
Years Ended December 31,
2015
2014
Change
Withdrawals from storage natural gas inventory (MMBtu) 15,782,500
37,197,510
(21,415,010)
Realized margin on natural gas inventory transactions $ (2)
$ 17
$ (19)
Fair value inventory adjustments 4
(54)
58
Unrealized gains on derivatives 12
35
(23)
Margin recognized on natural gas inventory, including related derivatives 14
(2)
16
Revenues from fee-based storage 27
27
—
Other costs —
(1)
1
Total storage margin $ 41
$ 24
$ 17
The increase in storage margin was principally driven by the timing of the movement of market prices during both periods.
Interstate Transportation and Storage
Years Ended December 31,
2015
2014
Change
Natural gas transported (MMBtu/d) 6,074,282
6,159,546
(85,264)
Natural gas sold (MMBtu/d) 17,340
16,470
870
Revenues $ 1,025
$ 1,072
$ (47)
Operating expenses, excluding non-cash compensation, amortization and accretion
expenses (304)
(291)
(13)
Selling, general and administrative expenses, excluding non-cash compensation,
amortization and accretion expenses (52)
(62)
10
Adjusted EBITDA related to unconsolidated affiliates 486
482
4
Other —
11
(11)
Segment Adjusted EBITDA $ 1,155
$ 1,212
$ (57)
 For the year ended December 31, 2015 compared to the prior year, transported volumes decreased 165,712 MMBtu/d on the Trunkline pipeline,
primarily due to a managed contract roll off to facilitate the transfer of one of the pipelines that was taken out of service in advance of being repurposed from
natural gas service to crude oil service. The decrease on the Trunkline pipeline was partially offset by an increase in volumes transported on the Tiger
pipeline of 74,081 MMBtu/d, primarily due to
76