Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Summary of Financial Information

We evaluate the performance of our operating segments based on segment profit and adjusted gross margin. Adjusted gross margin is a non-GAAP financial measure. See “Item 2. Management’s Discussion and Analysis of Financial Condition and

Results of Operations—Non-GAAP Financial Measures” for additional information. Summarized financial information for our reportable segments is shown in the following tables (in millions):


			Permian						Louisiana						Oklahoma						North Texas						Corporate						Totals
Three Months Ended March 31, 2023
Natural gas sales			$	129.3					$	131.8					$	66.8					$	14.5					$	—					$	342.4
NGL sales			0.4						857.9						8.6						(1.0)						—						865.9
Crude oil and condensate sales			186.7						56.6						24.7						—						—						268.0

Product sales			316.4						1,046.3						100.1						13.5						—						1,476.3

NGL sales—related parties			237.5						4.4						118.0						79.5						(439.4)						—
Crude oil and condensate sales—related parties			—						—						—						2.7						(2.7)						—
Product sales—related parties			237.5						4.4						118.0						82.2						(442.1)						—
Gathering and transportation			23.3						20.0						54.8						52.1						—						150.2
Processing			14.0						0.3						35.3						32.1						—						81.7
NGL services			—						27.8						—						—						—						27.8
Crude services			6.0						6.5						4.5						0.2						—						17.2
Other services			1.7						0.4						0.1						0.2						—						2.4
Midstream services			45.0						55.0						94.7						84.6						—						279.3


NGL services—related parties			—						—						—						0.6						(0.6)						—


Midstream services—related parties			—						—						—						0.6						(0.6)						—
Revenue from contracts with customers			598.9						1,105.7						312.8						180.9						(442.7)						1,755.6
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)			(457.1)						(973.9)						(194.0)						(89.6)						442.7						(1,271.9)
Realized gain (loss) on derivatives			(4.0)						7.2						2.0						8.1						—						13.3
Change in fair value of derivatives			6.3						(9.0)						(1.4)						2.7						—						(1.4)
Adjusted gross margin			144.1						130.0						119.4						102.1						—						495.6
Operating expenses			(48.1)						(33.6)						(24.7)						(26.0)						—						(132.4)
Segment profit			96.0						96.4						94.7						76.1						—						363.2
Depreciation and amortization			(40.0)						(38.3)						(51.9)						(28.8)						(1.4)						(160.4)

Gain on disposition of assets			—						0.1						0.2						0.1						—						0.4
General and administrative			—						—						—						—						(29.5)						(29.5)
Interest expense, net of interest income			—						—						—						—						(68.5)						(68.5)

Loss from unconsolidated affiliate investments			—						—						—						—						(0.1)						(0.1)

Income (loss) before non-controlling interest and income taxes			$	56.0					$	58.2					$	43.0					$	47.4					$	(99.5)					$	105.1
Capital expenditures			$	56.7					$	12.3					$	25.7					$	18.1					$	1.3					$	114.1

____________________________

(1)Includes related party cost of sales of $1.5 million for the three months ended March 31, 2023.


			Permian						Louisiana						Oklahoma						North Texas						Corporate						Totals
Three Months Ended March 31, 2022
Natural gas sales			$	195.6					$	211.5					$	76.3					$	25.4					$	—					$	508.8
NGL sales			—						1,151.5						3.1						(0.1)						—						1,154.5
Crude oil and condensate sales			272.0						73.9						34.7						—						—						380.6

Product sales			467.6						1,436.9						114.1						25.3						—						2,043.9

NGL sales—related parties			399.8						36.9						208.1						146.9						(791.7)						—
Crude oil and condensate sales—related parties			—						—						0.3						3.0						(3.3)						—
Product sales—related parties			399.8						36.9						208.4						149.9						(795.0)						—
Gathering and transportation			13.6						16.3						42.7						38.8						—						111.4
Processing			7.8						0.5						25.4						27.6						—						61.3
NGL services			—						23.9						—						—						—						23.9
Crude services			4.3						9.4						3.7						0.2						—						17.6
Other services			0.2						0.4						0.1						0.1						—						0.8
Midstream services			25.9						50.5						71.9						66.7						—						215.0




Other services—related parties			—						0.1						—						—						(0.1)						—
Midstream services—related parties			—						0.1						—						—						(0.1)						—
Revenue from contracts with customers			893.3						1,524.4						394.4						241.9						(795.1)						2,258.9
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)			(766.7)						(1,388.7)						(276.8)						(157.4)						795.1						(1,794.5)
Realized loss on derivatives			(2.4)						(6.6)						(3.7)						(3.4)						—						(16.1)
Change in fair value of derivatives			(5.9)						(5.6)						(7.1)						3.5						—						(15.1)
Adjusted gross margin			118.3						123.5						106.8						84.6						—						433.2
Operating expenses			(45.3)						(33.0)						(21.0)						(21.6)						—						(120.9)
Segment profit			73.0						90.5						85.8						63.0						—						312.3
Depreciation and amortization			(36.7)						(35.5)						(50.9)						(28.4)						(1.4)						(152.9)

Gain (loss) on disposition of assets			—						0.2						0.2						(5.5)						—						(5.1)
General and administrative			—						—						—						—						(29.0)						(29.0)
Interest expense, net of interest income			—						—						—						—						(55.1)						(55.1)

Loss from unconsolidated affiliate investments			—						—						—						—						(1.1)						(1.1)
Other income			—						—						—						—						0.1						0.1
Income (loss) before non-controlling interest and income taxes			$	36.3					$	55.2					$	35.1					$	29.1					$	(86.5)					$	69.2

Capital expenditures			$	34.2					$	5.7					$	15.4					$	3.1					$	1.6					$	60.0

____________________________

(1)Includes related party cost of sales of $10.6 million for the three months ended March 31, 2022.

Schedule of Segment Assets

The table below represents information about segment assets as of March 31, 2023 and December 31, 2022 (in millions):


Segment Identifiable Assets:						March 31, 2023						December 31, 2022
Permian						$	2,643.6					$	2,661.4
Louisiana						2,172.4						2,310.7
Oklahoma						2,402.0						2,420.4
North Texas						1,064.8						1,094.6
Corporate (1)						263.6						163.9
Total identifiable assets						$	8,546.4					$	8,651.0

____________________________(1)Accounts receivable and accrued revenue sold to the SPV for collateral under the AR Facility are included within the Permian, Louisiana, Oklahoma, and North Texas segments.