Segment Data

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Data

Segment Data

We aggregate our operating segments into four reportable segments: (i) gathering and processing; (ii) wholesale marketing and terminalling; (iii) storage and transportation; and (iv) investment in pipeline joint ventures. Operations that are not specifically included in the reportable segments are included in Corporate and other segment.

During the fourth quarter 2022, we realigned our reportable segments for financial reporting purposes to reflect changes in the manner in which our Chief Operating Decision Maker ("CODM") uses financial information to make key operating decisions and assess performance. The changes primarily represent reporting the operating results of our pipeline operations and legacy gathering assets and the operating results of the Delaware Gathering operations within a new reportable segment called gathering and processing. Prior to this change, the pipeline operations and legacy gathering assets were reported as part of the pipelines and transportation segment. The remaining operations of the former pipelines and transportation reportable segment was renamed to storage and transportation. Unallocated corporate costs, including general and administrative expenses, interest expense and depreciation and amortization, are now presented in corporate and other. Additionally, the CODM determined that Segment EBITDA is the key performance measure for planning and forecasting purposes and discontinued the use of Contribution Margin as a measure of performance. While this reporting change did not change our consolidated results, segment data for previous years has been restated and is consistent with the current year presentation throughout the financial statements and the accompanying notes.

EBITDA is an important measure used by management to evaluate the financial performance of our core operations. EBITDA is not a GAAP measure, but the components of EBITDA are computed using amounts that are determined in accordance with GAAP. A reconciliation of EBITDA to Net Income is included in the tables below. We define EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense, including amortization of customer contract intangible assets, which is included as a component of net revenues in our accompanying condensed consolidated statements of income.

Assets by segment is not a measure used to assess the performance of the Partnership by the CODM and thus is not disclosed.

The following is a summary of business segment operating performance as measured by EBITDA for the periods indicated (in thousands):

	Three Months Ended September 30, 2023
(In thousands)	Gathering and Processing		Wholesale Marketing and Terminalling		Storage and Transportation		Investments in Pipeline Joint Ventures		Corporate and Other		Consolidated
Net revenues:
Affiliate	$	55,419	$	70,610	$	30,382	$	—	$	—	$	156,411
Third party	39,406		76,500		3,507		—		—		119,413
Total revenue	$	94,825	$	147,110	$	33,889	$	—	$	—	$	275,824
Segment EBITDA	$	52,906	$	28,135	$	17,914	$	9,288	$	(10,002)	$	98,241
Depreciation and amortization	19,263		1,769		2,704		—		849		24,585
Amortization of customer contract intangible	—		1,803		—		—		—		1,803
Interest expense, net	—		—		—		—		36,901		36,901
Income tax expense											127
Net income											$	34,825
Capital spending	$	12,002	$	2,123	$	522	$	—	$	—	$	14,647
	Three Months Ended September 30, 2022
(In thousands)	Gathering and Processing		Wholesale Marketing and Terminalling		Storage and Transportation		Investments in Pipeline Joint Ventures		Corporate and Other		Consolidated
Net revenues:
Affiliate	$	48,377	$	45,162	$	33,611					$	127,150
Third party	60,233		102,703		3,939		—		—		166,875
Total revenue	$	108,610	$	147,865	$	37,550	$	—	$	—	$	294,025
Segment EBITDA	$	56,551	$	20,272	$	14,575	$	8,567	$	(11,003)	$	88,962
Depreciation and amortization	17,779		1,628		2,087		—		(1,954)		19,540
Amortization of customer contract intangible	—		1,802		—		—		—		1,802
Interest expense, net	—		—		—		—		22,559		22,559
Income tax expense											387
Net income											$	44,674
Capital spending	$	30,895	$	1,065	$	—	$	—	$	—	$	31,960
	Nine Months Ended September 30, 2023
(In thousands)	Gathering and Processing		Wholesale Marketing and Terminalling		Storage and Transportation		Investments in Pipeline Joint Ventures		Corporate and Other		Consolidated
Net revenues:
Affiliate	$	157,362	$	156,437	$	100,604	$	—	$	—	$	414,403
Third party	123,132		221,809		6,916		—		—		351,857
Total revenue	$	280,494	$	378,246	$	107,520	$	—	$	—	$	766,260
Segment EBITDA	$	161,014	$	78,071	$	46,316	$	22,889	$	(24,111)	$	284,179
Depreciation and amortization	54,511		5,338		7,109		—		2,459		69,417
Amortization of customer contract intangible	—		5,408		—		—		—		5,408
Interest expense, net	—		—		—		—		104,581		104,581
Income tax expense											685
Net income											$	104,088
Capital spending	$	62,168	$	2,527	$	3,933	$	—	$	—	$	68,628

	Nine Months Ended September 30, 2022
(In thousands)	Gathering and Processing		Wholesale Marketing and Terminalling		Storage and Transportation		Investments in Pipeline Joint Ventures		Corporate and Other		Consolidated
Net revenues:
Affiliate	$	134,315	$	144,004	$	96,951	$	—	$	—	$	375,270
Third party	81,165		300,177		10,744		—		—		392,086
Total revenue	$	215,480	$	444,181	$	107,695	$	—	$	—	$	767,356
Segment EBITDA	$	127,129	$	59,813	$	40,212	$	22,666	$	(30,349)	$	219,471
Depreciation and amortization	32,260		4,674		6,363		—		—		43,297
Amortization of customer contract intangible	—		5,408		—		—		—		5,408
Interest expense, net	—		—		—		—		53,621		53,621
Income tax expense											793
Net income											$	116,352
Capital spending	$	66,388	$	1,384	$	—	$	—	$	—	$	67,772