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49
implement risk management activities to provide general stability in our margins, these margins are not fixed and will vary from
period to period.
The following table presents the operating results and key operating measures for our Crude Oil Acquisition and Marketing
segment for the periods presented:
Successor Predecessor
Year Ended
December 31,
2014
Year Ended
December 31,
2013
Three Months
Ended
December 31,
2013
Nine Months
Ended
September 30,
2013
Period from
Acquisition,
October 5, 2012
to December 31,
2012 (1)
Period from
January 1, 2012
to October 4,
2012 (1)
(in millions, except for barrel amounts)
(in millions,
except for barrel
amounts)
Sales and other operating revenue
Unaffiliated customers $ 15,574 $ 14,122 $ 3,620 $ 10,502 $ 2,747 $ 8,951
Affiliates 842 1,394 346 1,048 139 307
Intersegment revenue 2 2 2 — 2 —
Total sales and other operating
revenue $ 16,418 $ 15,518 $ 3,968 $ 11,550 $ 2,888 $ 9,258
Depreciation and amortization expense $ 54 $ 49 $ 13 $ 36 $ 11 $ 16
Impairment charge and other related
matters (2) $ 231 $ — $ — $ — $ — $ 8
Adjusted EBITDA $ 163 $ 233 $ 33 $ 200 $ 81 $ 158
Crude oil purchases (thousands of bpd) 873 749 734 754 669 674
Gross profit per barrel purchased (cents)(3) 60.5 94.9 60.1 106.3 142.5 95.1
Average crude oil price (per barrel) $ 92.92 $ 98.00 $ 97.50 $ 98.17 $ 88.20 $ 96.20
(1) The effective date of the acquisition for accounting and reporting purposes was deemed to be October 1, 2012. The activity from
October 1, 2012 through October 4, 2012 was not material in relation to our financial position, results of operations or cash flows.
(2) In the fourth quarter 2014, we recognized a non-cash impairment charge to write down crude oil inventory resulting from the decline
in commodity prices. In the first quarter 2012, we recognized a non-cash impairment charge related to a cancelled software project.
(3) Represents total segment sales and other operating revenue minus cost of products sold and operating expenses, divided by total
crude oil purchases.
Adjusted EBITDA for the Crude Oil Acquisition and Marketing segment decreased $70 million to $163 million for the
year ended December 31, 2014 compared to $233 million for the year ended December 31, 2013. The decrease in Adjusted
EBITDA was primarily attributable to lower crude oil margins ($106 million) driven by contracted crude oil differentials
compared to the prior year period and higher costs attributable to growth projects ($5 million). This impact was partially offset
by increased crude oil volumes ($42 million) resulting from higher market demand, the expansion of our crude oil trucking fleet,
and the acquisition of EDF in 2014.
Adjusted EBITDA for the Crude Oil Acquisition and Marketing segment for the fourth quarter 2013 decreased $48 million
compared to the period from October 5, 2012 to December 31, 2012. The decrease in Adjusted EBITDA was primarily due to
lower crude oil margins ($56 million) driven by crude differentials which have contracted compared to the prior year period.
This impact was partially offset by increased crude oil volumes ($8 million) resulting from higher market demand and the
expansion of our crude oil trucking fleet.
Adjusted EBITDA for the Crude Oil Acquisition and Marketing segment increased $42 million to $200 million for the nine
months ended September 30, 2013, compared to $158 million for the period from January 1, 2012 to October 4, 2012. The
increase in Adjusted EBITDA was driven primarily by expanded crude oil volumes ($20 million) and margins ($21 million).
Increased volumes resulted from the expansion in our crude oil trucking fleet and market related opportunities in West Texas.
Crude oil margins increased over the prior year despite crude differentials which contracted relative to the first half of 2013.
Terminal Facilities
Our Terminal Facilities segment consists primarily of crude oil, refined products and NGLs terminals, as well as a refined
products and NGLs acquisition and marketing business. The Terminal Facilities segment earns revenue by providing storage,
terminalling, blending and other ancillary services to our customers, as well as through the sale of refined products and NGLs.