v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 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 fuel to customers that include independently operated dealer and distributor stations, commission agent operators, and commercial businesses. In addition, we supply our directly operated convenience retail facilities. Our Fuel Distribution segment also includes income from the Partnership’s properties that are leased, in addition to 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 102 refined product terminals (18 in Europe, six in Hawaii, nine in Canada, 20 in the Greater Caribbean and 49 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 and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenues:
Fuel Distribution
Revenues from external customers$13,739 $5,096 $23,940 $9,999 
Intersegment revenues686 9 904 22 
14,425 5,105 24,844 10,021 
Pipeline Systems
Revenues from external customers202 181 396 354 
Intersegment revenues5 1 9 2 
207 182 405 356 
Terminals
Revenues from external customers183 113 332 216 
Intersegment revenues388 230 673 466 
571 343 1,005 682 
Refinery
Revenues from external customers135 — 281 — 
Intersegment revenues858 — 1,364 — 
993 — 1,645 — 
Eliminations(1,937)(240)(2,950)(490)
Total$14,259 $5,390 $24,949 $10,569 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cost of sales:
Fuel Distribution$13,534 $4,843 $22,717 $9,398 
Pipeline Systems12 (1)26 (1)
Terminals371 219 580 440 
Refinery815 — 1,423 — 
Eliminations(1,937)(240)(2,950)(490)
Total$12,795 $4,821 $21,796 $9,347 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating and lease expenses, excluding non-cash unit-based compensation:
Fuel Distribution$305 $74 $574 $146 
Pipeline Systems54 45 103 89 
Terminals75 43 138 85 
Refinery— — — — 
Total$434 $162 $815 $320 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
General and administrative expenses, excluding non-cash unit-based compensation:
Fuel Distribution$122 $26 $244 $46 
Pipeline Systems14 11 26 20 
Terminals12 10 23 17 
Refinery7 — 13 — 
Total$155 $47 $306 $83 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Other (1):
Fuel Distribution$(40)$(44)$276 $5 
Pipeline Systems(63)(50)(119)(101)
Terminals— — 44 3 
Refinery(4)— (9)— 
Total$(107)$(94)$192 $(93)
(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 June 30,Six Months Ended June 30,
2026202520262025
Segment Adjusted EBITDA:
Fuel Distribution$504 $206 $1,033 $426 
Pipeline Systems190 177 369 349 
Terminals113 71 220 137 
Refinery175 — 218 — 
Total$982 $454 $1,840 $912 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Reconciliation of net income to Adjusted EBITDA:
Net income$283 $86 $927 $293 
Depreciation, amortization and accretion282 154 568 310 
Interest expense, net204 123 405 244 
Non-cash unit-based compensation expense7 5 13 9 
(Gain) loss on disposal of assets and impairment charges3 (2)2 1 
Loss on extinguishment of debt— 17 1 19 
Unrealized (gains) losses on commodity derivatives(6)(7)50 (8)
Inventory valuation adjustments18 40 (426)(21)
Equity in earnings of unconsolidated affiliates(47)(31)(89)(63)
Adjusted EBITDA related to unconsolidated affiliates75 51 144 101 
Other non-cash adjustments84 11 131 22 
Income tax expense79 7 114 5 
Adjusted EBITDA (consolidated)$982 $454 $1,840 $912