v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information

Note 16 — Segment Information

 

We operate in two primary segments: (i) Gathering and Processing, and (ii) Logistics and Transportation (also referred to as the Downstream Business). Our reportable segments include operating segments that have been aggregated based on the nature of the products and services provided.

 

Our Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast.

 

Our Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of our other businesses. The Logistics and Transportation segment also includes our NGL pipeline system, which connects our gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with our Downstream facilities in Mont Belvieu, Texas. Our Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana.

 

Other contains the unrealized mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. Elimination of inter-segment transactions are reflected in the corporate and eliminations column.

 

The following tables show reportable segment information for the periods presented:

 

 

 

Three Months Ended March 31, 2026

 

 

 

Gathering and Processing

 

 

Logistics and Transportation

 

 

Total Reportable Segments

 

 

Other

 

 

Corporate
and
Eliminations

 

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of commodities

 

$

285.6

 

 

$

3,169.3

 

 

$

3,454.9

 

 

$

(110.3

)

 

$

—

 

 

$

3,344.6

 

Fees from midstream services

 

 

574.5

 

 

 

175.6

 

 

 

750.1

 

 

 

—

 

 

 

—

 

 

 

750.1

 

 

 

860.1

 

 

 

3,344.9

 

 

 

4,205.0

 

 

 

(110.3

)

 

 

—

 

 

 

4,094.7

 

Intersegment revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of commodities

 

 

918.3

 

 

 

57.1

 

 

 

975.4

 

 

 

—

 

 

 

(975.4

)

 

 

—

 

Fees from midstream services

 

 

(0.9

)

 

 

9.2

 

 

 

8.3

 

 

 

—

 

 

 

(8.3

)

 

 

—

 

 

 

917.4

 

 

 

66.3

 

 

 

983.7

 

 

 

—

 

 

 

(983.7

)

 

 

—

 

Revenues

 

$

1,777.5

 

 

$

3,411.2

 

 

$

5,188.7

 

 

$

(110.3

)

 

$

(983.7

)

 

$

4,094.7

 

Operating expenses

 

$

233.6

 

 

$

100.2

 

 

$

333.8

 

 

$

—

 

 

 

 

 

 

 

Other segment items (1)

 

 

840.4

 

 

 

2,537.7

 

 

 

3,378.1

 

 

 

—

 

 

 

 

 

 

 

Operating margin

 

 

703.5

 

 

 

773.3

 

 

 

1,476.8

 

 

 

(110.3

)

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets (2)

 

$

16,468.3

 

 

$

10,381.3

 

 

$

26,849.6

 

 

$

0.1

 

 

$

257.6

 

 

$

27,107.3

 

Goodwill

 

 

118.9

 

 

 

—

 

 

 

118.9

 

 

 

—

 

 

 

—

 

 

 

118.9

 

Capital expenditures

 

 

581.8

 

 

 

358.7

 

 

 

940.5

 

 

 

—

 

 

 

7.8

 

 

 

948.3

 

 

 

 

Three Months Ended March 31, 2025

 

 

 

Gathering and Processing

 

 

Logistics and Transportation

 

 

Total Reportable Segments

 

 

Other

 

 

Corporate
and
Eliminations

 

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of commodities

 

$

200.7

 

 

$

3,932.5

 

 

$

4,133.2

 

 

$

(248.8

)

 

$

—

 

 

$

3,884.4

 

Fees from midstream services

 

 

475.1

 

 

 

202.0

 

 

 

677.1

 

 

 

—

 

 

 

—

 

 

 

677.1

 

 

 

675.8

 

 

 

4,134.5

 

 

 

4,810.3

 

 

 

(248.8

)

 

 

—

 

 

 

4,561.5

 

Intersegment revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of commodities

 

 

1,517.0

 

 

 

59.4

 

 

 

1,576.4

 

 

 

—

 

 

 

(1,576.4

)

 

 

—

 

Fees from midstream services

 

 

0.2

 

 

 

7.1

 

 

 

7.3

 

 

 

—

 

 

 

(7.3

)

 

 

—

 

 

 

1,517.2

 

 

 

66.5

 

 

 

1,583.7

 

 

 

—

 

 

 

(1,583.7

)

 

 

—

 

Revenues

 

$

2,193.0

 

 

$

4,201.0

 

 

$

6,394.0

 

 

$

(248.8

)

 

$

(1,583.7

)

 

$

4,561.5

 

Operating expenses

 

$

208.2

 

 

$

95.5

 

 

$

303.7

 

 

$

—

 

 

 

 

 

 

 

Other segment items (1)

 

 

1,382.6

 

 

 

3,458.8

 

 

 

4,841.4

 

 

 

—

 

 

 

 

 

 

 

Operating margin

 

 

602.2

 

 

 

646.7

 

 

 

1,248.9

 

 

 

(248.8

)

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets (2)

 

$

13,727.9

 

 

$

8,821.1

 

 

$

22,549.0

 

 

$

—

 

 

$

251.3

 

 

$

22,800.3

 

Goodwill

 

 

45.2

 

 

 

—

 

 

 

45.2

 

 

 

—

 

 

 

—

 

 

 

45.2

 

Capital expenditures

 

 

433.2

 

 

 

174.7

 

 

 

607.9

 

 

 

—

 

 

 

10.4

 

 

 

618.3

 

 

 

(1)
“Other segment items” represents Product purchases and fuel.
(2)
Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.

 

 

The following table shows our consolidated revenues disaggregated by product and service for the periods presented:

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Sales of commodities:

 

 

 

 

 

 

Revenue recognized from contracts with customers:

 

 

 

 

 

 

Natural gas

 

$

473.7

 

 

$

681.9

 

NGL

 

 

2,982.8

 

 

 

3,376.8

 

Condensate and crude oil

 

 

131.8

 

 

 

117.0

 

 

 

3,588.3

 

 

 

4,175.7

 

Non-customer revenue:

 

 

 

 

 

 

Derivative activities - Hedge

 

 

(0.2

)

 

 

(6.1

)

Derivative activities - Non-hedge (1)

 

 

(243.5

)

 

 

(285.2

)

 

 

(243.7

)

 

 

(291.3

)

Total sales of commodities

 

 

3,344.6

 

 

 

3,884.4

 

 

 

 

 

 

 

Fees from midstream services:

 

 

 

 

 

 

Revenue recognized from contracts with customers:

 

 

 

 

 

 

Gathering and processing

 

 

559.7

 

 

 

469.0

 

NGL transportation, fractionation and services

 

68.5

 

 

 

73.2

 

Storage, terminaling and export

 

 

123.1

 

 

 

135.4

 

Other

 

 

(1.2

)

 

 

(0.5

)

Total fees from midstream services

 

 

750.1

 

 

 

677.1

 

 

 

 

 

 

 

Total revenues

 

$

4,094.7

 

 

$

4,561.5

 

 

(1)
Represents derivative activities that are not designated as hedging instruments under ASC 815.

 

The following table shows a reconciliation of reportable segment Operating margin to Income (loss) before income taxes for the periods presented:

 

 

Three Months Ended March 31,

 

 

2026

 

 

2025

 

Reconciliation of reportable segment operating
margin to income (loss) before income taxes:

 

 

 

 

 

Total reportable segments operating margin

$

1,476.8

 

 

$

1,248.9

 

Other operating margin

 

(110.3

)

 

 

(248.8

)

Depreciation and amortization expense

 

(426.0

)

 

 

(367.6

)

General and administrative expense

 

(107.8

)

 

 

(94.5

)

Other operating income (expense)

 

14.2

 

 

 

5.3

 

Interest expense, net

 

(227.6

)

 

 

(197.1

)

Equity earnings (loss)

 

8.6

 

 

 

5.5

 

Other, net

 

(16.6

)

 

 

0.3

 

Income (loss) before income taxes

$

611.3

 

 

$

352.0