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Segment Information
9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information
(14) Segment Information

We manage and report our activities primarily according to the geography and nature of activity. We have five reportable segments:

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 Cana-Woodford, Arkoma-Woodford, northern Oklahoma Woodford, STACK, and adjacent areas;

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

Corporate Segment. The Corporate segment includes our unconsolidated affiliate investments in the Cedar Cove JV in Oklahoma, GCF in South Texas, and the Matterhorn JV in West Texas, as well as our 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. See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” for additional information. Summarized financial information for our reportable segments is shown in the following tables (in millions):
PermianLouisianaOklahomaNorth TexasCorporateTotals
Three Months Ended September 30, 2023
Natural gas sales$132.9 $101.8 $42.3 $22.7 $— $299.7 
NGL sales(4.8)746.6 (2.0)0.7 — 740.5 
Crude oil and condensate sales345.2 78.0 24.7 — — 447.9 
Product sales473.3 926.4 65.0 23.4 — 1,488.1 
NGL sales—related parties247.4 5.3 126.0 78.7 (457.4)— 
Crude oil and condensate sales—related parties— — — 2.3 (2.3)— 
Product sales—related parties247.4 5.3 126.0 81.0 (459.7)— 
Gathering and transportation 30.5 19.5 60.5 49.8 — 160.3 
Processing15.3 0.5 36.2 29.9 — 81.9 
NGL services— 20.5 — 0.1 — 20.6 
Crude services5.6 5.7 3.7 0.1 — 15.1 
Other services1.7 0.2 0.1 0.2 — 2.2 
Midstream services53.1 46.4 100.5 80.1 — 280.1 
NGL services—related parties— — — 1.2 (1.2)— 
Midstream services—related parties— — — 1.2 (1.2)— 
Revenue from contracts with customers773.8 978.1 291.5 185.7 (460.9)1,768.2 
Realized gain (loss) on derivatives(4.4)— 0.9 4.4 — 0.9 
Change in fair value of derivatives(7.4)(6.0)(4.1)(5.4)— (22.9)
Total revenues762.0 972.1 288.3 184.7 (460.9)1,746.2 
Cost of sales, exclusive of operating expenses and depreciation and amortization(604.3)(850.0)(157.1)(94.2)460.9 (1,244.7)
Adjusted gross margin157.7 122.1 131.2 90.5 — 501.5 
Operating expenses(55.0)(35.0)(26.6)(26.7)— (143.3)
Segment profit102.7 87.1 104.6 63.8 — 358.2 
Depreciation and amortization(42.1)(36.3)(54.6)(29.3)(1.5)(163.8)
Gross margin60.6 50.8 50.0 34.5 (1.5)194.4 
Impairments— (20.7)— — — (20.7)
Gain on disposition of assets— — 0.5 0.1 — 0.6 
General and administrative— — — — (30.4)(30.4)
Interest expense, net of interest income— — — — (67.9)(67.9)
Income from unconsolidated affiliate investments— — — — 1.0 1.0 
Other expense— — — — (0.6)(0.6)
Income (loss) before non-controlling interest and income taxes$60.6 $30.1 $50.5 $34.6 $(99.4)$76.4 
Capital expenditures$82.9 $23.1 $11.5 $17.0 $2.0 $136.5 
PermianLouisianaOklahomaNorth TexasCorporateTotals
Three Months Ended September 30, 2022
Natural gas sales$361.6 $383.8 $114.5 $42.8 $— $902.7 
NGL sales0.2 1,067.4 1.7 1.4 — 1,070.7 
Crude oil and condensate sales280.7 97.0 33.3 — — 411.0 
Product sales642.5 1,548.2 149.5 44.2 — 2,384.4 
NGL sales—related parties380.3 46.3 203.2 139.7 (769.5)— 
Crude oil and condensate sales—related parties— — — 2.6 (2.6)— 
Product sales—related parties380.3 46.3 203.2 142.3 (772.1)— 
Gathering and transportation 20.9 22.1 45.9 49.9 — 138.8 
Processing11.1 0.4 31.4 39.5 — 82.4 
NGL services— 19.5 — 0.1 — 19.6 
Crude services5.7 8.1 3.0 0.1 — 16.9 
Other services0.2 0.4 0.2 0.1 — 0.9 
Midstream services37.9 50.5 80.5 89.7 — 258.6 
Other services—related parties— 0.1 — — (0.1)— 
Midstream services—related parties— 0.1 — — (0.1)— 
Revenue from contracts with customers1,060.7 1,645.1 433.2 276.2 (772.2)2,643.0 
Realized gain (loss) on derivatives1.3 3.3 0.6 (2.9)— 2.3 
Change in fair value of derivatives2.4 4.0 9.5 2.3 — 18.2 
Total revenues1,064.4 1,652.4 443.3 275.6 (772.2)2,663.5 
Cost of sales, exclusive of operating expenses and depreciation and amortization(903.3)(1,517.8)(315.3)(166.9)772.2 (2,131.1)
Adjusted gross margin161.1 134.6 128.0 108.7 — 532.4 
Operating expenses(49.7)(37.6)(23.5)(26.0)— (136.8)
Segment profit111.4 97.0 104.5 82.7 — 395.6 
Depreciation and amortization(36.8)(39.7)(51.5)(33.4)(1.2)(162.6)
Gross margin74.6 57.3 53.0 49.3 (1.2)233.0 
Gain on disposition of assets— 0.1 0.1 0.6 — 0.8 
General and administrative— — — — (34.5)(34.5)
Interest expense, net of interest income— — — — (60.4)(60.4)
Loss on extinguishment of debt— — — — (5.7)(5.7)
Loss from unconsolidated affiliate investments— — — — (1.7)(1.7)
Other income— — — — 0.3 0.3 
Income (loss) before non-controlling interest and income taxes$74.6 $57.4 $53.1 $49.9 $(103.2)$131.8 
Capital expenditures$61.7 $6.5 $18.2 $6.5 $1.6 $94.5 
PermianLouisianaOklahomaNorth TexasCorporateTotals
Nine Months Ended September 30, 2023
Natural gas sales$338.6 $326.1 $142.0 $53.9 $— $860.6 
NGL sales(4.4)2,253.1 7.0 (2.2)— 2,253.5 
Crude oil and condensate sales826.3 187.2 76.1 — — 1,089.6 
Product sales1,160.5 2,766.4 225.1 51.7 — 4,203.7 
NGL sales—related parties689.0 15.0 346.3 224.4 (1,274.7)— 
Crude oil and condensate sales—related parties— — — 7.8 (7.8)— 
Product sales—related parties689.0 15.0 346.3 232.2 (1,282.5)— 
Gathering and transportation 83.1 58.2 175.8 153.8 — 470.9 
Processing43.8 0.9 107.9 92.5 — 245.1 
NGL services— 65.7 — 0.2 — 65.9 
Crude services18.6 17.8 13.1 0.5 — 50.0 
Other services5.0 0.9 0.4 0.7 — 7.0 
Midstream services150.5 143.5 297.2 247.7 — 838.9 
NGL services—related parties— — — 2.6 (2.6)— 
Midstream services—related parties— — — 2.6 (2.6)— 
Revenue from contracts with customers2,000.0 2,924.9 868.6 534.2 (1,285.1)5,042.6 
Realized gain (loss) on derivatives(3.0)(0.6)4.8 19.0 — 20.2 
Change in fair value of derivatives(9.0)3.2 (3.5)(9.7)— (19.0)
Total revenues1,988.0 2,927.5 869.9 543.5 (1,285.1)5,043.8 
Cost of sales, exclusive of operating expenses and depreciation and amortization(1,541.3)(2,538.9)(481.6)(258.9)1,285.1 (3,535.6)
Adjusted gross margin446.7 388.6 388.3 284.6 — 1,508.2 
Operating expenses(156.2)(100.6)(78.3)(77.4)— (412.5)
Segment profit290.5 288.0 310.0 207.2 — 1,095.7 
Depreciation and amortization(123.6)(111.5)(163.1)(87.1)(4.2)(489.5)
Gross margin166.9 176.5 146.9 120.1 (4.2)606.2 
Impairments— (20.7)— — — (20.7)
Gain on disposition of assets0.1 0.2 0.8 0.7 — 1.8 
General and administrative— — — — (87.8)(87.8)
Interest expense, net of interest income— — — — (205.2)(205.2)
Loss from unconsolidated affiliate investments— — — — (3.7)(3.7)
Other expense— — — — (0.2)(0.2)
Income (loss) before non-controlling interest and income taxes$167.0 $156.0 $147.7 $120.8 $(301.1)$290.4 
Capital expenditures$191.2 $53.1 $59.3 $46.9 $4.8 $355.3 
PermianLouisianaOklahomaNorth TexasCorporateTotals
Nine Months Ended September 30, 2022
Natural gas sales$880.2 $868.2 $277.9 $106.1 $— $2,132.4 
NGL sales0.2 3,382.6 8.4 1.4 — 3,392.6 
Crude oil and condensate sales884.3 280.9 108.6 — — 1,273.8 
Product sales1,764.7 4,531.7 394.9 107.5 — 6,798.8 
NGL sales—related parties1,207.6 126.3 653.9 452.4 (2,440.2)— 
Crude oil and condensate sales—related parties— — 0.3 9.6 (9.9)— 
Product sales—related parties1,207.6 126.3 654.2 462.0 (2,450.1)— 
Gathering and transportation 54.4 54.1 133.3 129.3 — 371.1 
Processing28.8 1.2 85.4 95.0 — 210.4 
NGL services— 61.8 — 0.2 — 62.0 
Crude services16.0 26.7 9.9 0.5 — 53.1 
Other services0.6 1.2 0.4 0.4 — 2.6 
Midstream services99.8 145.0 229.0 225.4 — 699.2 
Crude services—related parties— — 0.1 — (0.1)— 
Other services—related parties— 0.2 — — (0.2)— 
Midstream services—related parties— 0.2 0.1 — (0.3)— 
Revenue from contracts with customers3,072.1 4,803.2 1,278.2 794.9 (2,450.4)7,498.0 
Realized loss on derivatives(11.3)(5.8)(18.9)(8.6)— (44.6)
Change in fair value of derivatives9.0 10.2 10.6 8.6 — 38.4 
Total revenues3,069.8 4,807.6 1,269.9 794.9 (2,450.4)7,491.8 
Cost of sales, exclusive of operating expenses and depreciation and amortization(2,628.0)(4,425.7)(913.4)(514.0)2,450.4 (6,030.7)
Adjusted gross margin441.8 381.9 356.5 280.9 — 1,461.1 
Operating expenses(145.3)(105.4)(67.6)(68.3)— (386.6)
Segment profit296.5 276.5 288.9 212.6 — 1,074.5 
Depreciation and amortization(110.6)(114.6)(154.7)(90.5)(4.1)(474.5)
Gross margin185.9 161.9 134.2 122.1 (4.1)600.0 
Gain (loss) on disposition of assets— 0.3 0.5 (4.7)— (3.9)
General and administrative— — — — (91.9)(91.9)
Interest expense, net of interest income— — — — (171.0)(171.0)
Loss on extinguishment of debt— — — — (6.2)(6.2)
Loss from unconsolidated affiliate investments— — — — (4.0)(4.0)
Other income— — — — 0.6 0.6 
Income (loss) before non-controlling interest and income taxes$185.9 $162.2 $134.7 $117.4 $(276.6)$323.6 
Capital expenditures$130.6 $18.5 $45.1 $17.7 $5.1 $217.0 
The table below represents information about segment assets as of September 30, 2023 and December 31, 2022 (in millions):
Segment Identifiable Assets:September 30, 2023December 31, 2022
Permian$2,771.5 $2,661.4 
Louisiana2,164.0 2,310.7 
Oklahoma2,330.3 2,420.4 
North Texas1,025.5 1,094.6 
Corporate (1)199.2 163.9 
Total identifiable assets$8,490.5 $8,651.0 
____________________________(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.