v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting [Text Block] Segment Reporting
Description of Segments
Our consolidated financial statements reflect four reportable segments: Fuel Distribution, Pipeline Systems, Terminals and Refinery.
Fuel Distribution. Our Fuel Distribution segment supplies motor fuel to independently-operated dealer stations, distributors, commission agents and other consumers. Also included in our Fuel Distribution segment is lease income from properties that we lease or sublease, as well as the Partnership’s credit card services, franchise royalties and retail operations in North America and the Greater Caribbean.
Pipeline Systems. Our Pipeline Systems segment includes an integrated pipeline and terminal network comprised of approximately 6,000 miles of refined product pipeline (including the pipeline of J.C. Nolan), approximately 6,000 miles of crude oil pipeline (including the pipelines of ET-S Permian), approximately 2,000 miles of ammonia pipeline and 69 terminals.
Terminals. Our Terminals segment is composed of four transmix processing facilities and 99 refined product terminals (18 in Europe, six in Hawaii, nine in Canada, 13 in the Greater Caribbean and 53 in the continental United States).
Refinery. Our Refinery segment includes the Burnaby Refinery, which was acquired in the Parkland Acquisition, with an operational capacity of approximately 55,000 barrels per day. The refinery consumes primarily sweet conventional crude oil and sweet synthetic crude oil to produce gasoline, diesel and jet fuel among other products.
Segment Operating Results
We report Adjusted EBITDA by segment as a measure of segment performance. We define Adjusted EBITDA as net income before net interest expense, income tax expense, depreciation, amortization and accretion expense, non-cash compensation expense, gains and losses on disposal of asset, non-cash impairment charges, losses on extinguishment of debt, unrealized gains and losses on commodity derivatives, inventory valuation adjustments, certain foreign currency transaction gains and losses and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations. Inventory valuation adjustments that are excluded from the calculation of Adjusted EBITDA represent changes in lower of cost or market reserves on the Partnership's inventory; these amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period.
The following tables present financial information by segment for the three months ended March 31, 2026 and 2025:
Three Months Ended March 31,
20262025
Revenues:
Fuel Distribution
Revenues from external customers$10,201 $4,903 
Intersegment revenues218 13 
10,419 4,916 
Pipeline Systems
Revenues from external customers194 173 
Intersegment revenues4 1 
198 174 
Terminals
Revenues from external customers149 103 
Intersegment revenues285 236 
434 339 
Refinery
Revenues from external customers146 — 
Intersegment revenues506 — 
652 — 
Eliminations(1,013)(250)
Total$10,690 $5,179 
Three Months Ended March 31,
20262025
Cost of sales:
Fuel Distribution$9,183 $4,555 
Pipeline Systems14 — 
Terminals209 221 
Refinery608 — 
Eliminations(1,013)(250)
Total$9,001 $4,526 
Three Months Ended March 31,
20262025
Operating and lease expenses, excluding non-cash unit-based compensation:
Fuel Distribution$269 $72 
Pipeline Systems49 44 
Terminals63 42 
Refinery— — 
Total$381 $158 
Three Months Ended March 31,
20262025
General and administrative expenses, excluding non-cash unit-based compensation:
Fuel Distribution$122 $20 
Pipeline Systems12 9 
Terminals11 7 
Refinery6 — 
Total$151 $36 
Three Months Ended March 31,
20262025
Other(1):
Fuel Distribution$316 $49 
Pipeline Systems(56)(51)
Terminals44 3 
Refinery(5)— 
Total$299 $1 
(1)    Other by segment includes Adjusted EBITDA from unconsolidated affiliates, unrealized gains and losses on commodity derivatives, inventory valuation adjustments and other less significant items, as applicable.
Three Months Ended March 31,
20262025
Segment Adjusted EBITDA:
Fuel Distribution$529 $220 
Pipeline Systems179 172 
Terminals107 66 
Refinery43 — 
Total$858 $458 
Three Months Ended March 31,
20262025
Reconciliation of net income to Adjusted EBITDA:
Net income$644 $207 
Depreciation, amortization and accretion286 156 
Interest expense, net201 121 
Non-cash unit-based compensation expense6 4 
(Gain) loss on disposal of assets and impairment charges(1)3 
Loss on extinguishment of debt1 2 
Unrealized (gains) losses on commodity derivatives56 (1)
Inventory valuation adjustments(444)(61)
Equity in earnings of unconsolidated affiliates(42)(32)
Adjusted EBITDA related to unconsolidated affiliates69 50 
Other non-cash adjustments47 11 
Income tax expense (benefit)35 (2)
Adjusted EBITDA (consolidated)$858 $458