In connection with the April 2010 acquisition of the Company's interest in the Permian assets and Coastal Straddles and its impact on the Partnership's structure used for internal management purposes, an updated evaluation of the Partnership's reportable segments was performed during the second quarter of 2010. As a result, the Partnership's operations are now presented under four reportable segments: (1) Field Gathering and Processing, (2) Coastal Gathering and Processing, (3) Logistics Assets and (4) Marketing and Distribution.
Field Gathering and Processing Segment
The Field Gathering and Processing segment gathers and processes natural gas from the Permian Basin in West Texas and Southeast New Mexico, and the Fort Worth Basin, including the Barnett Shale, in North Texas. The segment's processing plants include nine owned and operated facilities. The following table provides summary data regarding results of operations of this segment for the periods indicated:
|Three Months Ended December 31,||Year Ended December 31,|
|($ in millions)|
|Gross margin||$ 88.4||$ 81.2||$ 338.8||$ 268.3|
|Operating margin||$ 59.8||$ 59.8||$ 236.6||$ 183.2|
|Plant natural gas inlet, MMcf/d|
|North Texas System||189.9||165.7||180.4||173.6|
|Gross NGL production, MBbl/d|
|North Texas System||21.7||19.3||20.7||20.1|
|Natural gas sales, BBtu/d (1)||262.7||238.8||258.6||219.6|
|NGL sales, MBbl/d (1)||59.4||58.7||56.6||56.2|
|Condensate sales, MBbl/d (1)||2.6||2.6||2.9||3.2|
|Average realized prices (2):|
|Natural gas, $/MMBtu||3.54||4.00||4.11||3.69|
|(1) Segment operating statistics include the effect of intersegment sales, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the year and the denominator is the number of calendar days during the applicable period.|
|(2) Average realized prices do not include the impact of hedging activities.|
Three Months Ended December 31, 2010 Compared to Three Months Ended December 31, 2009The $7.2 million increase in gross margin for 2010 is primarily due to an increase in commodity sales prices ($22.2 million), an increase in natural gas and NGL sales volumes ($11.3 million) and fee-based and other revenues ($2.1 million) partially offset by a decrease in condensate revenue ($0.1 million) and increased commodity purchase costs ($28.3 million). The increased volumes were largely attributable to new well connects at North Texas, SAOU, and Permian assets, partially offset by production declines caused by unplanned downtime due to a water tank rupture in the third quarter at Versado's Eunice plant.
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