Energy Transfer 2015 Annual Report Download - page 93

Table of Contents
Storage margin was comprised of the following:
Years Ended December 31,
2014
2013
Change
Withdrawals from storage natural gas inventory (MMBtu) 37,197,510
36,962,300
235,210
Realized margin on natural gas inventory transactions $ 17
$ (16)
$ 33
Fair value inventory adjustments (54)
28
(82)
Unrealized gains on derivatives 35
8
27
Margin recognized on natural gas inventory, including related derivatives (2)
20
(22)
Revenues from fee-based storage 27
28
(1)
Other costs (1)
—
(1)
Total storage margin $ 24
$ 48
$ (24)
The decrease in storage margin was principally driven by a decline in the spreads between the spot and forward prices on natural gas we own in the Bammel
storage facility resulting in a $14 million reduction in margin from year to year. The remainder of the decrease was primarily due to non-cash mark-to-market
losses of $8 million on hedges for future storage seasons.
Interstate Transportation and Storage
Years Ended December 31,
2014
2013
Change
Natural gas transported (MMBtu/d) 6,159,546
6,480,215
(320,669)
Natural gas sold (MMBtu/d) 16,470
18,835
(2,365)
Revenues $ 1,072
$ 1,309
$ (237)
Operating expenses, excluding non-cash compensation, amortization and accretion
expenses (291)
(332)
41
Selling, general and administrative, excluding non-cash compensation, amortization and
accretion expenses (62)
(80)
18
Adjusted EBITDA related to unconsolidated affiliates 482
471
11
Other 11
—
11
Segment Adjusted EBITDA $ 1,212
$ 1,368
$ (156)
 For the year ended December 31, 2014 compared to the prior year, transported volumes decreased due to lower volumes transported on the Tiger
pipeline resulting from decreased production from the Haynesville Shale and due to lower utilization on the Trunkline and Transwestern pipelines. The
decreases in volumes on the Tiger, Trunkline and Transwestern pipelines were partially offset by higher volumes transported on the Panhandle pipeline due
to increased demand resulting from the cold winter season during the first quarter of 2014.
   For the year ended December 31, 2014 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 $216 million in revenues from the deconsolidation of Lake Charles LNG effective January 1, 2014 and the recognition in 2013 of
$52 million received in connection with the buyout of a customer contract. These revenue decreases were partially offset by an increase of approximately
$29 million due to capacity sold at higher rates and gas parking service revenues from higher basis differentials and spot prices resulting from the colder
weather, primarily during the first quarter of 2014 on the Panhandle pipeline; partially offset by
• a decrease $41 million in operating expenses primarily due to the deconsolidation of Lake Charles LNG effective January 1, 2014;
• a decrease of $18 million in selling, general and administrative expenses due to a decrease of $9 million from the deconsolidation of Lake Charles LNG,
a decrease of $7 million in professional fees, and a decrease of $2 million in employee-related costs;
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