Intrastate Transportation and Storage
| | | | | | | | | | Three Months Ended
June 30, | | 2018 | | 2017 | Natural gas transported (BBtu/d) | 10,327 |
| | 9,261 |
| Revenues | $ | 813 |
| | $ | 753 |
| Cost of products sold | 546 |
| | 551 |
| Segment margin | 267 |
| | 202 |
| Unrealized gains on commodity risk management activities | (8 | ) | | (21 | ) | Operating expenses, excluding non-cash compensation expense | (51 | ) | | (46 | ) | Selling, general and administrative expenses, excluding non-cash compensation expense | (7 | ) | | (5 | ) | Adjusted EBITDA related to unconsolidated affiliates | 7 |
| | 18 |
| Segment Adjusted EBITDA | $ | 208 |
| | $ | 148 |
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Transported volumes increased primarily due to favorable market pricing. In addition, beginning in April 2018, transported volumes also reflected Regency Intrastate Gas LP (“RIGS”) as a consolidated subsidiary. RIGS was previously reflected as an unconsolidated affiliate until ETP acquired the remaining interest in April 2018. Segment Adjusted EBITDA. For the three months ended June 30, 2018 compared to the same period last year, Segment Adjusted EBITDA related to our intrastate transportation and storage segment increased due to the net impacts of the following:
| | • | an increase of $47 million in realized natural gas sales and other margin due to higher realized gains from pipeline optimization activity; |
| | • | a net increase of $5 million due to the consolidation of RIGS beginning in April 2018, as discussed above, resulting in increases in transportation fees, operating expenses, and selling, general and administrative expenses of $26 million, $6 million and $2 million, respectively, and a decrease of $13 million in Adjusted EBITDA related to unconsolidated affiliates; |
| | • | an increase of $4 million in transportation fees, excluding the incremental transportation fees related to the RIGS consolidation discussed above, primarily due to higher demand on existing pipelines; and |
| | • | an increase of $3 million in realized storage margin primarily due to higher realized derivative gains; partially offset by |
| | • | a decrease of $2 million in retained fuel revenues as a result of lower natural gas pricing. |
Interstate Transportation and Storage
| | | | | | | | | | Three Months Ended
June 30, | | 2018 | | 2017 | Natural gas transported (BBtu/d) | 8,707 |
| | 5,299 |
| Natural gas sold (BBtu/d) | 17 |
| | 17 |
| Revenues | $ | 328 |
| | $ | 207 |
| Operating expenses, excluding non-cash compensation, amortization and accretion expenses | (105 | ) | | (67 | ) | Selling, general and administrative expenses, excluding non-cash compensation, amortization and accretion expenses | (17 | ) | | (7 | ) | Adjusted EBITDA related to unconsolidated affiliates | 123 |
| | 128 |
| Other | 1 |
| | 1 |
| Segment Adjusted EBITDA | $ | 330 |
| | $ | 262 |
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Transported volumes reflected an increase of 1,748 BBtu/d as a result of the partial in service of the Rover pipeline; increases of 654 BBtu/d and 425 BBtu/d on the Panhandle and Trunkline pipelines, respectively, due to increased utilization of higher contracted capacity; an increase of 350 BBtu/d on the Tiger pipeline as a result of production increases in the Haynesville Shale and deliveries into intrastate markets; and an increase of 200 BBtu/d on the Transwestern pipeline resulting from favorable opportunities in the midcontinent and Waha areas from the Permian supply basin.
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