Energy Transfer 2015 Annual Report Download - page 94

Table of Contents
• an increase of $11 million in adjusted EBITDA related to unconsolidated affiliates primarily due to increased earnings from Citrus as a result of the sale
of additional capacity and lower operating expenses due to lower ad valorem taxes; and
• an increase of $11 million due to the recognition of an $11 million keep-whole payment received from our FEP joint venture partner.
Midstream
Years Ended December 31,
2014
2013
Change
Gathered volumes (MMBtu/d): 7,780,278
4,609,359
3,170,919
NGLs produced (Bbls/d): 317,487
198,894
118,593
Equity NGLs (Bbls/d): 27,611
19,340
8,271
Revenues $ 6,823
$ 4,276
$ 2,547
Cost of products sold 4,893
3,130
1,763
Gross margin 1,930
1,146
784
Unrealized (gains) losses on commodity risk management activities (89)
2
(91)
Operating expenses, excluding non-cash compensation expense (481)
(358)
(123)
Selling, general and administrative, excluding non-cash compensation expense (54)
(38)
(16)
Adjusted EBITDA related to unconsolidated affiliates 12
3
9
Other —
2
(2)
Segment Adjusted EBITDA $ 1,318
$ 757
$ 561
 Gathered volumes, NGL produced and equity NGLs increased for the year ended December 31, 2014 compared to the prior year primarily due to
increased production by our customers in the Eagle Ford Shale and the Permian Basin. We brought into service 320 MMcf/d in additional processing
capacity during the year ended December 31, 2014.
 For the year ended December 31, 2014 compared to the prior year, Segment Adjusted EBITDA related to our midstream segment
increased due to the net impacts of the following:
• an increase of $669 million in gross margin related to Regency’s gathering and processing operations, primarily due to Regency’s acquisitions of PVR,
Eagle Rock midstream assets and Hoover in 2014, and an increase in fee-based revenues of $121 million from ETP’s legacy midstream assets due to
increased production and increased capacity from assets recently placed in service in the Eagle Ford Shale; and
• an increase of $9 million in adjusted EBITDA related to unconsolidated affiliates primarily due to increased throughput and condensate sales related to
Regency’s investment in Ranch JV; partially offset by
• an increase in midstream operating expenses primarily due to a $76 million increase in pipeline and plant maintenance and materials due to organic
growth on Regency’s assets in south and West Texas, as well as increased employee-related costs from Regency’s acquisitions of PVR, Eagle Rock
midstream assets and Hoover in 2014.
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