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Segment Information
9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information
(13) Segment Information

Starting in the first quarter of 2021, we began evaluating the financial performance of our segments by including realized and unrealized gains and losses resulting from commodity swaps activity in the Permian, Louisiana, Oklahoma, and North Texas segments. Commodity swaps activity was previously reported in the Corporate segment. We have recast segment information for all presented periods prior to the first quarter of 2021 to conform to current period presentation. Identification of the majority of our operating segments is based principally upon geographic regions served:

Permian Segment. The Permian segment includes our natural gas gathering, processing, and transmission activities and our crude oil operations in the Midland and Delaware Basins in West Texas and Eastern New Mexico;

Louisiana Segment. The Louisiana segment includes our natural gas and NGL pipelines, natural gas processing plants, natural gas and NGL storage facilities, and fractionation facilities located in Louisiana and our crude oil operations in ORV;

Oklahoma Segment. The Oklahoma segment includes our natural gas gathering, processing, and transmission activities, and our crude oil operations in the Cana-Woodford, Arkoma-Woodford, northern Oklahoma Woodford, STACK, and CNOW shale areas;

North Texas Segment. The North Texas segment includes our natural gas gathering, processing, and transmission activities in North Texas; and

Corporate Segment. The Corporate segment includes our unconsolidated affiliate investments in the Cedar Cove JV in Oklahoma, our ownership interest in GCF in South Texas, and our general corporate assets and expenses.
We evaluate the performance of our operating segments based on segment profit and adjusted gross margin. Adjusted gross margin is a non-GAAP financial measure. Summarized financial information for our reportable segments is shown in the following tables (in millions):
PermianLouisianaOklahomaNorth TexasCorporateTotals
Three Months Ended September 30, 2021
Natural gas sales$159.3 $183.2 $58.2 $32.2 $— $432.9 
NGL sales0.4 898.6 0.3 (0.1)— 899.2 
Crude oil and condensate sales194.4 62.5 21.2 — — 278.1 
Product sales354.1 1,144.3 79.7 32.1 — 1,610.2 
NGL sales—related parties301.4 39.5 180.2 131.2 (652.3)— 
Crude oil and condensate sales—related parties— — — 1.5 (1.5)— 
Product sales—related parties301.4 39.5 180.2 132.7 (653.8)— 
Gathering and transportation 12.8 16.3 44.6 39.0 — 112.7 
Processing7.5 0.9 26.5 27.0 — 61.9 
NGL services— 16.9 — — — 16.9 
Crude services5.5 10.3 2.8 0.1 — 18.7 
Other services0.2 0.4 0.1 0.1 — 0.8 
Midstream services26.0 44.8 74.0 66.2 — 211.0 
Crude services—related parties— — 0.1 — (0.1)— 
Other services—related parties— 0.1 — — (0.1)— 
Midstream services—related parties— 0.1 0.1 — (0.2)— 
Revenue from contracts with customers681.5 1,228.7 334.0 231.0 (654.0)1,821.2 
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)(576.6)(1,110.8)(218.0)(149.4)654.0 (1,400.8)
Realized loss on derivatives(8.7)(14.9)(6.8)(2.0)— (32.4)
Change in fair value of derivatives10.2 (8.8)(2.3)(0.3)— (1.2)
Adjusted gross margin106.4 94.2 106.9 79.3 — 386.8 
Operating expenses(37.3)(30.5)(19.8)(19.3)— (106.9)
Segment profit69.1 63.7 87.1 60.0 — 279.9 
Depreciation and amortization(35.4)(34.6)(52.3)(28.5)(2.2)(153.0)
Gain on disposition of assets0.1 0.2 — 0.1 — 0.4 
General and administrative— — — — (28.2)(28.2)
Interest expense, net of interest income— — — — (60.1)(60.1)
Loss from unconsolidated affiliates— — — — (2.3)(2.3)
Income (loss) before non-controlling interest and income taxes$33.8 $29.3 $34.8 $31.6 $(92.8)$36.7 
Capital expenditures$25.8 $0.4 $10.3 $3.3 $0.6 $40.4 
____________________________
(1)Includes related party cost of sales of $4.9 million for the three months ended September 30, 2021 and excludes all operating expenses as well as depreciation and amortization related to our operating segments of $150.8 million for the three months ended September 30, 2021.
PermianLouisianaOklahomaNorth TexasCorporateTotals
Three Months Ended September 30, 2020
Natural gas sales$46.5 $76.4 $40.1 $16.0 $— $179.0 
NGL sales0.1 402.3 1.2 — — 403.6 
Crude oil and condensate sales82.6 21.7 9.2 — — 113.5 
Product sales129.2 500.4 50.5 16.0 — 696.1 
NGL sales—related parties95.6 3.3 85.4 21.4 (205.7)— 
Crude oil and condensate sales—related parties— — — 0.7 (0.7)— 
Product sales—related parties95.6 3.3 85.4 22.1 (206.4)— 
Gathering and transportation 17.9 10.7 56.7 43.4 — 128.7 
Processing8.0 0.3 32.4 33.3 — 74.0 
NGL services— 14.2 — — — 14.2 
Crude services3.8 12.2 3.7 — — 19.7 
Other services0.2 0.4 0.1 0.2 — 0.9 
Midstream services29.9 37.8 92.9 76.9 — 237.5 
Crude services—related parties— — 0.1 — (0.1)— 
Midstream services—related parties— — 0.1 — (0.1)— 
Revenue from contracts with customers254.7 541.5 228.9 115.0 (206.5)933.6 
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)(185.4)(441.4)(101.0)(28.2)206.5 (549.5)
Realized loss on derivatives(0.4)(0.6)(1.7)(0.2)— (2.9)
Change in fair value of derivatives0.9 (2.7)(0.3)(0.1)— (2.2)
Adjusted gross margin69.8 96.8 125.9 86.5 — 379.0 
Operating expenses(22.9)(31.1)(20.1)(20.2)— (94.3)
Segment profit46.9 65.7 105.8 66.3 — 284.7 
Depreciation and amortization(31.9)(36.9)(53.0)(36.8)(1.7)(160.3)
Gain on disposition of assets— — — 1.8 — 1.8 
General and administrative— — — — (25.7)(25.7)
Interest expense, net of interest income— — — — (55.5)(55.5)
Loss from unconsolidated affiliates— — — — (0.2)(0.2)
Other income— — — — 0.4 0.4 
Income (loss) before non-controlling interest and income taxes$15.0 $28.8 $52.8 $31.3 $(82.7)$45.2 
Capital expenditures$28.5 $8.5 $2.6 $3.0 $0.6 $43.2 
____________________________
(1)Includes related party cost of sales of $2.0 million for the three months ended September 30, 2020 and excludes all operating expenses as well as depreciation and amortization related to our operating segments of $158.6 million for the three months ended September 30, 2020.
PermianLouisianaOklahomaNorth TexasCorporateTotals
Nine Months Ended September 30, 2021
Natural gas sales$381.7 $426.4 $139.7 $109.4 $— $1,057.2 
NGL sales0.9 2,231.2 1.3 1.0 — 2,234.4 
Crude oil and condensate sales472.1 154.5 50.5 — — 677.1 
Product sales854.7 2,812.1 191.5 110.4 — 3,968.7 
NGL sales—related parties661.8 93.3 430.4 306.4 (1,491.9)— 
Crude oil and condensate sales—related parties— — 0.1 5.1 (5.2)— 
Product sales—related parties661.8 93.3 430.5 311.5 (1,497.1)— 
Gathering and transportation 34.3 48.5 141.8 117.6 — 342.2 
Processing21.7 1.9 70.5 81.1 — 175.2 
NGL services— 56.0 — 0.2 — 56.2 
Crude services13.0 29.8 9.5 0.5 — 52.8 
Other services0.6 1.3 0.5 0.4 — 2.8 
Midstream services69.6 137.5 222.3 199.8 — 629.2 
Crude services—related parties— — 0.2 — (0.2)— 
Other services—related parties— 2.4 — — (2.4)— 
Midstream services—related parties— 2.4 0.2 — (2.6)— 
Revenue from contracts with customers1,586.1 3,045.3 844.5 621.7 (1,499.7)4,597.9 
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)(1,304.5)(2,690.1)(533.9)(361.8)1,499.7 (3,390.6)
Realized loss on derivatives(69.8)(32.0)(15.7)(4.8)— (122.3)
Change in fair value of derivatives(3.0)(18.6)(9.4)(1.9)— (32.9)
Adjusted gross margin208.8 304.6 285.5 253.2 — 1,052.1 
Operating expenses(52.9)(91.4)(57.3)(58.4)— (260.0)
Segment profit155.9 213.2 228.2 194.8 — 792.1 
Depreciation and amortization(103.5)(106.8)(153.6)(86.0)(6.0)(455.9)
Gain on disposition of assets0.2 0.3 — 0.2 — 0.7 
General and administrative— — — — (80.3)(80.3)
Interest expense, net of interest income— — — — (180.1)(180.1)
Loss from unconsolidated affiliates— — — — (9.9)(9.9)
Other income— — — — 0.1 0.1 
Income (loss) before non-controlling interest and income taxes$52.6 $106.7 $74.6 $109.0 $(276.2)$66.7 
Capital expenditures$78.6 $5.4 $17.1 $7.6 $1.1 $109.8 
____________________________
(1)Includes related party cost of sales of $11.7 million for the nine months ended September 30, 2021 and excludes all operating expenses as well as depreciation and amortization related to our operating segments of $449.9 million for the nine months ended September 30, 2021.
PermianLouisianaOklahomaNorth TexasCorporateTotals
Nine Months Ended September 30, 2020
Natural gas sales$94.0 $226.6 $110.0 $50.7 $— $481.3 
NGL sales0.2 1,056.9 2.9 0.3 — 1060.3 
Crude oil and condensate sales454.6 95.0 30.4 — — 580.0 
Product sales548.8 1,378.5 143.3 51.0 — 2,121.6 
NGL sales—related parties201.0 13.3 209.0 52.5 (475.8)— 
Crude oil and condensate sales—related parties0.1 — (0.1)2.6 (2.6)— 
Product sales—related parties201.1 13.3 208.9 55.1 (478.4)— 
Gathering and transportation 47.3 33.9 165.5 133.5 — 380.2 
Processing19.8 1.6 97.8 101.7 — 220.9 
NGL services— 52.4 — 0.1 — 52.5 
Crude services13.0 33.8 12.6 — — 59.4 
Other services1.0 1.2 0.3 0.7 — 3.2 
Midstream services81.1 122.9 276.2 236.0 — 716.2 
Crude services—related parties— — 0.3 — (0.3)— 
Midstream services—related parties— — 0.3 — (0.3)— 
Revenue from contracts with customers831.0 1,514.7 628.7 342.1 (478.7)2,837.8 
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)(637.7)(1,213.6)(255.8)(74.1)478.7 (1,702.5)
Realized gain (loss) on derivatives(0.6)1.9 (1.7)0.1 — (0.3)
Change in fair value of derivatives2.3 (7.8)(2.4)(0.1)— (8.0)
Adjusted gross margin195.0 295.2 368.8 268.0 — 1,127.0 
Operating expenses(71.1)(90.4)(62.4)(59.2)— (283.1)
Segment profit123.9 204.8 306.4 208.8 — 843.9 
Depreciation and amortization(92.1)(109.3)(163.7)(110.4)(5.8)(481.3)
Impairments(184.6)(169.9)— — — (354.5)
Gain (loss) on disposition of assets(4.9)0.1 0.1 1.9 — (2.8)
General and administrative— — — — (79.6)(79.6)
Interest expense, net of interest income— — — — (166.3)(166.3)
Gain on extinguishment of debt— — — — 32.0 32.0 
Income from unconsolidated affiliates— — — — 0.8 0.8 
Other income— — — — 0.4 0.4 
Income (loss) before non-controlling interest and income taxes$(157.7)$(74.3)$142.8 $100.3 $(218.5)$(207.4)
Capital expenditures$161.4 $39.3 $14.1 $10.7 $1.7 $227.2 
____________________________
(1)Includes related party cost of sales of $6.2 million for the nine months ended September 30, 2020 and excludes all operating expenses as well as depreciation and amortization related to our operating segments of $475.5 million for the nine months ended September 30, 2020.
The table below represents information about segment assets as of September 30, 2021 and December 31, 2020 (in millions):
Segment Identifiable Assets:September 30, 2021December 31, 2020
Permian$2,391.2 $2,236.3 
Louisiana2,489.4 2,312.4 
Oklahoma2,661.5 2,847.6 
North Texas938.0 1,008.6 
Corporate (1)146.4 146.0 
Total identifiable assets$8,626.5 $8,550.9 
____________________________
(1)Accounts receivable and accrued revenue sold to the SPV for collateral under the AR Facility are included within the Permian, Louisiana, Oklahoma, and North Texas segments.