NGL and Refined Products Transportation and Services
Three Months Ended
NGL transportation volumes (MBbls/d)
Refined products transportation volumes (MBbls/d)
NGL and refined products terminal volumes (MBbls/d)
NGL fractionation volumes (MBbls/d)
Cost of products sold
Unrealized losses on commodity risk management activities
Operating expenses, excluding non-cash compensation expense
Selling, general and administrative expenses, excluding non-cash compensation expense
Adjusted EBITDA related to unconsolidated affiliates
Inventory valuation adjustments
Segment Adjusted EBITDA
NGL and refined products transportation volumes increased in the major producing regions, including the Permian, Southeast Texas, Louisiana, Eagle Ford and North Texas. NGL and refined products terminal volumes decreased for the three months ended September 30, 2017 primarily due to the sale of one of our refined product terminals in April 2017.
Average daily fractionated volumes increased 17% compared to the same period last year primarily due to the commissioning of our fourth fractionator at Mont Belvieu, Texas, in October 2016, which has a capacity of 120,000 Bbls/d, as well as increased producer volumes as mentioned above.
Segment Adjusted EBITDA. For the three months ended September 30, 2017 compared to the same period last year, Segment Adjusted EBITDA related to our NGL and refined products transportation and services segment increased due to net impact of the following:
an increase in transportation margin of $20 million primarily due to higher volumes on our Texas NGL pipelines and our Mariner East system;
an increase in fractionation and refinery services margin of $13 million (excluding net changes in unrealized gains and losses of $1 million) primarily due to higher NGL volumes from most major producing regions, as noted above;
an increase in terminal services margin of $7 million due to higher terminal volumes from the Mariner NGL projects; and
a decrease of $4 million in operating expenses primarily due to a legal settlement of $8 million and a quarterly ad valorem tax true-up of $1 million; partially offset by
a decrease of $1 million in marketing margin (excluding net changes in unrealized gains and losses of $36 million) primarily due to the timing of the recognition of margin from optimization activities; and
an increase of $1 million in selling, general and administrative expenses due to higher allocations and lower capitalized overhead resulting from reduced capital spending.