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Acquisition
9 Months Ended
Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisition
(3) Acquisition

On July 1, 2022, we acquired all of the equity interest in the gathering and processing assets of Crestwood Equity Partners LP located in the Barnett Shale, for a cash purchase price of $275.0 million plus working capital of $14.5 million. These assets include approximately 400 miles of lean and rich gas gathering pipeline and three processing plants with 425 MMcf/d of total processing capacity. We completed this acquisition to increase the scale of our North Texas assets and realize efficiencies by redeploying redundant assets to our other segments, including the Permian segment in the near-term and the CCS business in the future.

The following table presents the fair value of the identified assets received and liabilities assumed at the acquisition date (in millions):
Consideration
Cash (including working capital payment)$289.5 
Purchase price allocation (1)
Assets acquired:
Current assets$17.3 
Property and equipment275.0 
Liabilities assumed:
Current liabilities(2.8)
Net assets acquired$289.5 
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(1)The purchase price allocation was based on preliminary estimates and assumptions, which are subject to change within the measurement period (up to one year from the acquisition date), as we finalize the valuations of the assets acquired and liabilities assumed upon the closing of the acquisition.

We incurred $0.4 million of transaction costs for the three and nine months ended September 30, 2022. These costs are incurred in general and administrative costs in the accompanying consolidated statements of operations.

For the three months ended September 30, 2022, we recognized $20.6 million of revenue and $12.6 million of net income related to the assets acquired.

The following unaudited pro forma condensed consolidated financial information (in millions) for the three and nine months ended September 30, 2022 and 2021 gives effect to the July 1, 2022 acquisition of Barnett Shale assets from Crestwood Equity Partners LP as if it had occurred on January 1, 2021. The unaudited pro forma condensed consolidated financial information has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the transaction taken place on the dates indicated and is not intended to be a projection of future results.

Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
Pro forma total revenues$2,663.5 $1,803.7 $7,528.8 $4,485.8 
Pro forma net income$116.6 $35.6 $320.8 $58.1