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 (gains) 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
Segment Adjusted EBITDA
NGL transportation volumes increased from the Permian, Barnett/East Texas, Eagle Ford, and Louisiana. Refined products transportation volumes decreased for the three months ended December 31, 2017 compared to the same period last year primarily due to lower volumes from our Midwest refineries.
NGL and refined products terminal volumes decreased for the three months ended December 31, 2017 as compared to the same period last year primarily due to the sale of one of our refined product terminals in April 2017.
Average volumes fractionated at our Mont Belvieu, Texas fractionation facility increased 19% for the three months ended December 31, 2017 compared to the same period last year primarily due to the commissioning of our fourth fractionator in October of 2016, which has a capacity of 120 MBbls/d, as well as increased producer volumes as mentioned above.
For the three months ended December 31, 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 $33 million primarily due to increased throughput on our Texas NGL pipelines resulting from increased producer volumes as noted above and the ramp up of volumes on our Mariner East system;
an increase in fractionation and refinery services margin of $27 million (excluding changes in unrealized gains and losses of $1 million) primarily due to higher NGL volumes from most major producing regions feeding our Mont Belvieu fractionation facility as well as the placing in service of our fourth fractionator at Mont Belvieu, Texas, as noted above; and
an increase in terminal services margin of $10 million due to higher throughput volumes at our Marcus Hook and Nederland NGL terminals; offset by
a decrease in marketing margin of $56 million (excluding changes in unrealized gains and losses of $43 million) primarily due to the timing of the recognition of margin from optimization activities; and
a decrease in storage margin of $6 million primarily due to fewer stored volumes as a result of the expiration of various contracts.