Energy Transfer 2015 Annual Report Download - page 83

Table of Contents
increased deliveries to pipelines supporting the upper Midwest due to favorable market conditions and increased volumes on the Transwestern pipeline of
69,237 MMBtu/d due to sustained cooling demand in the Phoenix market and increased customer demand in the Texas intrastate market.
   For the year ended December 31, 2015 compared to the prior year, Segment Adjusted EBITDA related to our interstate
transportation and storage segment decreased due to the net impacts of the following:
• a decrease of $47 million in revenues primarily due to lower gas parking service related revenues of approximately $19 million as a result of higher basis
differentials in 2014 driven by the colder weather, $22 million and $7 million due to the expiration of a transportation rate schedule and lower sales of
gas due to lower prices, respectively, on the Transwestern pipeline, and $15 million due to a managed contract roll off on the Trunkline pipeline 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.
These decreases were partially offset by sales of capacity at higher rates of $13 million on the Panhandle and Transwestern pipelines, as well as higher
usage rates and volumes on the Transwestern pipeline;
• an increase of $13 million in operating expenses due to higher employee expenses of approximately $9 million due in part to lower capitalized costs and
$3 million of higher ad valorem taxes primarily due to 2014 refunds associated with the settlement of litigation; and
• the recognition of an $11 million keep-whole payment received from our FEP joint venture, which is included in “Other” in 2014; offset by
• a decrease of $10 million in selling, general and administration expenses due to reduced franchise taxes of $3.5 million, state tax refund of $1.1 million,
favorable insurance, primarily due to a $1.3 million OIL insurance rebate, and reduced corporate overhead allocations of $2.4 million.
• an increase of $4 million in adjusted EBITDA related to unconsolidated affiliates primarily due to increased earnings from Citrus as a result of the sale of
additional capacity.
Midstream
Years Ended December 31,
2015
2014
Change
Gathered volumes (MMBtu/d) 9,981,217
8,079,109
1,902,108
NGLs produced (Bbls/d) 406,282
317,502
88,780
Equity NGLs (Bbls/d) 28,493
27,611
882
Revenues $ 5,071
$ 6,823
$ (1,752)
Cost of products sold 3,266
4,893
(1,627)
Gross margin 1,805
1,930
(125)
Unrealized (gains) losses on commodity risk management activities 82
(89)
171
Operating expenses, excluding non-cash compensation expense (616)
(481)
(135)
Selling, general and administrative expenses, excluding non-cash compensation expense (44)
(54)
10
Adjusted EBITDA related to unconsolidated affiliates 20
12
8
Other 3
—
3
Segment Adjusted EBITDA $ 1,250
$ 1,318
$ (68)
 Gathered volumes, NGLs produced and equity NGLs produced increased for the year ended December 31, 2015 compared to the prior year primarily
due to the full-year impacts of the acquisitions of the Eagle Rock, PVR and King Ranch midstream assets.
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