v3.26.1
SEGMENTS
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
Midstream Logistics and Pipeline Transportation are our operating segments representing the Company’s segments for which discrete financial information is available and utilized on a regular basis by our CODM to make key operating decisions, assess performance and allocate resources. These segments represent strategic business units with differing products and services. No operating segments have been aggregated to form the reportable segments. Therefore, our two operating segments represent our reportable segments. The activities of each of our reportable segments from which the Company earns revenues and incurs expenses are described below:
•Midstream Logistics: The Midstream Logistics segment operates under three revenue streams, 1) gas gathering and processing, 2) crude oil gathering, stabilization and storage services and 3) produced water gathering and disposal.
•Pipeline Transportation: The Pipeline Transportation segment consists of equity investment interests in two Permian Basin pipelines that access various points along the U.S. Gulf Coast and Mexico markets, Kinetik NGL Pipelines, Brandywine Pipeline and Delaware Link Pipeline. The current operating pipelines transport natural gas and NGLs.
Our Chief Executive Officer, who is the CODM, uses segment net income or loss including noncontrolling interest adjusted for interest, taxes, depreciation and amortization, gain or loss on disposal of assets, the proportionate EBITDA from our EMI pipelines, equity income recorded using the equity method, share-based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs and extraordinary losses and unusual or non-recurring charges (“Segment Adjusted EBITDA”) to assess performance of each operating segment. For both segments, the CODM uses Segment Adjusted EBITDA to allocate resources. The CODM considers budget-to-actual and forecast-to-actual variances on a monthly basis for both measures when making decisions about allocating capital and personnel to the segments.
The Midstream Logistics segment accounts for more than 99% of the Company’s operating revenues, cost of sales (excluding depreciation and amortization), operating expenses and ad valorem expenses. The Pipeline Transportation segment contains all of the Company’s equity method investments, which contribute more than 89% of the segment’s adjusted EBITDA. Corporate and Other activities contain the Company’s executive and administrative functions, including more than 86% of the Company’s general and administrative expenses and all of the Company’s debt service costs.
The Company regularly provides management reports to the CODM that include cost of sales, operating, general and administrative expenses related to the segments, which are all considered to be significant.
The following tables present the Segment Adjusted EBITDA of the Company’s reportable segments and reconciliations of the segment profits to consolidated income before income tax expenses for the three months ended March 31, 2026 and 2025:
Midstream LogisticsPipeline Transportation
Corporate and Other(1)
Elimination
Consolidated
For the three months ended March 31, 2026
(In thousands)
Revenue$403,720 $2,285 $— $— $406,005 
Other revenue3,962 9 — — 3,971 
Intersegment revenue(2)
— 6,824 — (6,824)— 
Total segment operating revenue407,682 9,118 — (6,824)409,976 
Costs of sales (excluding depreciation and amortization)
(188,588)(136)— — (188,724)
Intersegment costs of sales
(6,824)— — 6,824 — 
Operating expenses(3)
(78,302)(774)— — (79,076)
General and administrative expenses(5,510)(260)(38,430)— (44,200)
Proportionate EMI EBITDA— 70,029 — — 70,029 
Other segment items(4)
50,463 — 32,732 — 83,195 
Segment Adjusted EBITDA(5)
$178,921 $77,977 $(5,698)$— $251,200 
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Segment Adjusted EBITDA(5)
$178,921 $77,977 $(5,698)$— $251,200 
Add back:
Other interest income— — 167 — 167 
Gain on disposal of assets, net
19 — — — 19 
Equity in earnings of unconsolidated affiliates— 51,188 — — 51,188 
Deduct:
Interest expense48 — 53,372 — 53,420 
Depreciation and amortization expenses99,498 2,329 6 — 101,833 
Amortization of contract costs
1,950 — — — 1,950 
Proportionate EMI EBITDA— 70,029 — — 70,029 
Share-based compensation
— — 20,663 — 20,663 
Commodity hedging unrealized loss
46,987 — — — 46,987 
Integration costs— — 368 — 368 
Litigation costs— — 11,613 — 11,613 
Other one-time costs or amortization1,526 — 88 — 1,614 
Income (loss) before income taxes
$28,931 $56,807 $(91,641)$— $(5,903)
Midstream LogisticsPipeline Transportation
Corporate and Other(1)
EliminationConsolidated
For the three months ended March 31, 2025
(In thousands)
Revenue$438,025 $2,406 $— $— $440,431 
Other revenue2,830 2 — — 2,832 
Intersegment revenue(2)
— 4,804 — (4,804)— 
Total segment operating revenue440,855 7,212 — (4,804)443,263 
Costs of sales (excluding depreciation and amortization)
(223,360)(4)— — (223,364)
Intersegment costs of sales
(4,804)— — 4,804 — 
Operating expenses(3)
(69,909)(485)— — (70,394)
General and administrative expenses(7,125)(372)(30,095)— (37,592)
Proportionate EMI EBITDA— 87,530 — — 87,530 
Other segment items(4)
24,541 — 26,033 — 50,574 
Segment Adjusted EBITDA(5)
$160,198 $93,881 $(4,062)$— $250,017 
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Segment Adjusted EBITDA(5)
$160,198 $93,881 $(4,062)$— $250,017 
Add back:
Other interest income— — 790 — 790 
Gain on disposal of assets, net
40 — — — 40 
Equity in earnings of unconsolidated affiliates— 57,478 — — 57,478 
Deduct:
Interest expense28 — 55,686 — 55,714 
Depreciation and amortization expenses90,359 2,308 6 — 92,673 
Amortization of contract costs
1,656 — — — 1,656 
Proportionate EMI EBITDA— 87,530 — — 87,530 
Share-based compensation— — 20,653 — 20,653 
Commodity hedging unrealized loss18,127 — — — 18,127 
Integration costs2,475 — 1,063 — 3,538 
Litigation costs— — 3,015 — 3,015 
Other one-time costs or amortization2,288 — 1,302 — 3,590 
Income (loss) before income taxes$45,305 $61,521 $(84,997)$— $21,829 
Corporate and Other represents those results that: (i) are not specifically attributable to an operating segment; (ii) are not individually reportable or (iii) have not been allocated to a reportable segment for the purpose of evaluating their performance, including certain general and administrative expense items. Items included here to reconcile operating segments’ profit and loss with the Company’s consolidated profit and loss.
(2)The Company accounts for intersegment sales at market prices, while it accounts for asset transfers at book value. Intersegment revenue is eliminated at consolidation.
(3)Operating expenses include ad valorem taxes.
(4)Other segment items include certain other income items, share-based compensation, adjustments related to amortization of contract costs, commodity hedging unrealized gain or loss, integration costs, litigation costs and other one-time costs or amortization.
(5)Segment Adjusted EBITDA is a non-GAAP measure; please see Key Performance Metrics in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report on Form 10-Q, for a definition and reconciliation to the GAAP measure.
The following tables present other segment expenses that are not included in the segment profit measurements above for the three months ended March 31, 2026 and 2025:
Midstream Logistics Pipeline Transportation
Corporate and Other (1)
Consolidated
For the three months ended March 31, 2026
(In thousands)
Income tax benefit
$— $— $(778)$(778)
Capital expenditure
$92,575 $1,309 $— $93,884 
For the three months ended March 31, 2025
Income tax expenses$— $— $2,567 $2,567 
Capital expenditure(2)(3)
$81,232 $243 $— $81,475 
March 31,December 31,
20262025
Total assets:
(In thousands)
Midstream Logistics(4)
$4,724,647 $4,714,723 
Pipeline Transportation(5)
2,137,517 2,153,280 
Segment total assets6,862,164 6,868,003 
Corporate and other(1)
248,579 227,608 
Total assets$7,110,743 $7,095,611 
(1)Corporate and Other activities represents those results that: (i) are not specifically attributable to an operating segment; (ii) are not individually reportable or (iii) have not been allocated to a reportable segment for the purpose of evaluating their performance, including certain general and administrative expense items. Items included here to reconcile operating segments profit and loss with the Company’s consolidated profit and loss.
(2)Excludes capital assets acquired in business combinations and included in the Midstream Logistics segment. See Note 2—Business Combinations in the Notes to our Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for additional information.
(3)Excludes contributions or acquisitions made in the Company’s EMIs that are included in the Pipeline Transportation segment. See Note 6—Equity Method Investments in the Notes to our Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for additional information.
(4)The Midstream Logistics segment includes goodwill of $5.1 million as of March 31, 2026 and December 31, 2025.
(5)The Pipeline Transportation segment includes investments in unconsolidated affiliates of $1.99 billion and $2.01 billion as of March 31, 2026 and December 31, 2025, respectively.