Revenue during the quarter surged 46.46 percent to $2,112.60 million from $1,442.40 million in the previous year period. Gross margin for the quarter contracted 821 basis points over the previous year period to 21.70 percent. Total expenses were 97.61 percent of quarterly revenues, up from 97.54 percent for the same period last year. That has resulted in a contraction of 7 basis points in operating margin to 2.39 percent.

Operating income for the quarter was $50.50 million, compared with $35.50 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $276.70 million compared with $264.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 525 basis points in the quarter to 13.10 percent from 18.35 percent in the last year period.

“The first quarter of 2017 was highlighted by the announcement and closing of the acquisition of additional assets in the Permian Basin, and we are very pleased with the integration. The strength of the outlook for our Midland and Delaware Basin footprints is exemplified by our announcement today that we are moving forward with two additional natural gas processing plants in those Basins representing an additional 450 MMcf/d of natural gas processing capacity,” said Joe Bob Perkins, chief executive officer of the Company. “Our first quarter financial results were in-line with our expectations with Adjusted EBITDA 5% higher when compared to the first quarter of 2016, and we expect our financial performance to strengthen further in the second half of this year. Strong long-term market fundamentals underpin the growth trajectory for our Gathering and Processing and Downstream segments and are driving attractive opportunities for additional midstream infrastructure, which provides us with greater visibility for potential cash flow growth in 2018, 2019 and beyond.”