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SEC Filings
8-K
SOUTHERN UNION CO filed this Form 8-K on 11/05/2013
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NGL Transportation and Services
 
Three Months Ended September 30,
 
2013
 
2012
NGL transportation volumes (Bbls/d)
340,483

 
174,234

NGL fractionation volumes (Bbls/d)
96,608

 
11,442

Revenues
$
548

 
$
168

Cost of products sold
426

 
101

Gross margin
122

 
67

Unrealized losses on commodity risk management activities
1

 

Operating expenses, excluding non-cash compensation expense
(19
)
 
(13
)
Selling, general and administrative expenses, excluding non-cash compensation expense
(6
)
 
(5
)
Adjusted EBITDA related to unconsolidated affiliates
2

 
1

Segment Adjusted EBITDA
$
100

 
$
50

 
 
 
 
Distributions from unconsolidated affiliates
$
1

 
$

Segment Adjusted EBITDA for the NGL transportation and services segment increased for the three months ended September 30, 2013 compared to the same period last year primarily due to higher gross margin, as discussed below, partially offset by higher operating expenses from new assets placed in service.
Segment Adjusted EBITDA for the NGL transportation and services segment reflected an increase in gross margin as follows:
 
Three Months Ended September 30,
 
2013
 
2012
Storage margin
$
33

 
$
35

Transportation margin
49

 
21

Processing and fractionation margin
38

 
12

Other margin
2

 
(1
)
Total gross margin
$
122

 
$
67

Transportation margin increased as a result of higher volumes transported due to the completion of the Gateway pipeline resulting in increased margin of $20 million for the three months ended September 30, 2013. The completion of our Justice pipeline connection to Mont Belvieu, Texas and additional NGL production from our processing plants accounted for the remainder of the increase in transportation margin.
Processing and fractionation margin primarily increased due to the startup of Lone Star’s fractionator at Mont Belvieu, Texas in December 2012.

11

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