The increase in operating expenses was primarily due to higher system maintenance and repair costs at LOU and Yscloskey mothballing expenses.

Six Months Ended June 30, 2013 Compared to Six Months Ended June 30, 2012

The six month results were impacted by the same factors as discussed above for the three month comparison of 2013 to 2012.

Logistics and Marketing Segments

Logistics Assets

The Logistics Assets segment is involved in transporting, storing and fractionating mixed NGLs; storing, terminaling and transporting finished NGLs; and storing and terminaling refined petroleum products and crude oil. The Partnership's logistics assets are generally connected to, and supplied in part by its Gathering and Processing segments and are predominantly located in Mont Belvieu, Texas and Southwestern Louisiana.

The following table provides summary data regarding results of operations of this segment for the periods indicated:
  Three Months Ended June 30, Six Months Ended June 30,
  2013 2012 2013 2012
  ($ in millions)
Gross margin  $84.7  $69.1  $171.3  $133.5
Operating expenses  32.6  23.4  62.7  44.8
Operating margin  $52.1  $45.7  $108.6  $88.7
Operating statistics (1):        
Fractionation volumes, MBbl/d  256.6  311.3  257.3  302.5
LSNG treating volumes, MBbl/d  19.4  27.1  22.6  23.1
Benzene treating volumes, MBbl/d  16.9  23.7  18.8  20.4
 _______        
(1)  Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the quarter and the denominator is the number of calendar days during the quarter.

Three Months Ended June 30, 2013 Compared to Three Months Ended June 30, 2012

The increase in gross margin reflects higher revenues from all logistics activities except for treating. Higher fractionation fees more than offset the impact of partially curtailed fractionation volumes associated with the planned maintenance turnaround at CBF. Included in the increase in fractionation gross margin is the impact of higher fuel prices, which pass through to operating expenses. The CBF planned maintenance, which started in May 2013 and was completed in July 2013, primarily addresses Occupational Safety and Health Administration ("OSHA") Process Safety Management Standards and CBF's mechanical integrity programs. Export volumes, which benefit both the Logistics Assets and Marketing and Distribution segments, averaged 41 MBbl/d for the three months ended June 30, 2013, compared to 28 MBbl/d for the same period last year. Export rates were also higher. Storage revenues were higher due to increased rates and new customers. Treating revenues decreased due to reduced market demand. Petroleum Logistics terminaling gross margin improved as a result of increased crude oil throughput, the 2013 start-up of a renewable fuels project, and improved margins.

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