Segments

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segments

Note 11. Segments

Our operations are located in the United States and are organized into three reportable segments: (1) gathering, (2) processing and storage and (3) terminaling and export. Our reportable segments comprise the structure used by our Chief Executive Officer and Chief Financial Officer, who, collectively, have been determined to be our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. These segments are strategic business units with differing products and services. Interest and Other includes certain functional departments that do not recognize revenues.

Our CODM evaluates the segments’ operating performance based on Adjusted EBITDA, defined as net income (loss) before interest expense, income tax expense (benefit), and depreciation and amortization, as further adjusted for other non-cash, non‑recurring items, if applicable. For all of the segments, the CODM uses segment Adjusted EBITDA in the annual budgeting and monthly forecasting process. The CODM considers budget-to-current forecast and prior forecast-to-current forecast variances for Adjusted EBITDA on a monthly basis for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment.

The following tables reflect certain financial data for each reportable segment:

	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Three Months Ended September 30, 2024
Revenues and other income	$	203.5	$	145.1	$	29.9	$	378.5	$	-	$	378.5
Operating and maintenance expenses    (exclusive of depreciation shown    separately below)		51.3		30.3		7.4		89.0		-		89.0
Depreciation expense		32.2		15.0		4.3		51.5		-		51.5
General and administrative expenses		2.4		1.2		0.3		3.9		2.4		6.3
Income from equity investments		-		3.7		-		3.7		-		3.7
Interest expense, net		-		-		-		-		51.8		51.8
Income tax expense		-		-		-		-		18.9		18.9
Adjusted EBITDA		149.8		117.3		22.2		289.3
Capital expenditures		93.3		3.0		-		96.3
	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Three Months Ended September 30, 2023
Revenues and other income	$	197.5	$	133.2	$	32.4	$	363.1	$	-	$	363.1
Operating and maintenance expenses    (exclusive of depreciation shown    separately below)		52.5		26.7		10.2		89.4		-		89.4
Depreciation expense		28.9		14.5		4.3		47.7		-		47.7
General and administrative expenses		2.5		1.2		0.3		4.0		2.0		6.0
Income from equity investments		-		2.0		-		2.0		-		2.0
Interest expense, net		-		-		-		-		45.8		45.8
Income tax expense		-		-		-		-		11.4		11.4
Adjusted EBITDA		142.5		107.3		21.9		271.7
Capital expenditures		60.3		4.2		-		64.5

	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Nine Months Ended September 30, 2024
Revenues and other income	$	587.1	$	423.7	$	88.8	$	1,099.6	$	-	$	1,099.6
Operating and maintenance expenses    (exclusive of depreciation shown    separately below)		148.4		82.8		23.4		254.6		-		254.6
Depreciation expense		94.5		44.3		13.0		151.8		-		151.8
General and administrative expenses		6.8		3.4		0.7		10.9		6.3		17.2
Income from equity investments		-		10.1		-		10.1		-		10.1
Interest expense, net		-		-		-		-		150.0		150.0
Income tax expense		-		-		-		-		49.2		49.2
Adjusted EBITDA		431.9		347.6		64.7		844.2
Capital expenditures		194.5		9.6		0.1		204.2
	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Nine Months Ended September 30, 2023
Revenues and other income	$	536.7	$	370.4	$	85.0	$	992.1	$	-	$	992.1
Operating and maintenance expenses    (exclusive of depreciation shown    separately below)		134.7		70.7		19.6		225.0		-		225.0
Depreciation expense		85.9		43.5		12.7		142.1		-		142.1
General and administrative expenses		7.4		3.5		0.8		11.7		6.5		18.2
Income from equity investments		-		5.3		-		5.3		-		5.3
Interest expense, net		-		-		-		-		131.2		131.2
Income tax expense		-		-		-		-		26.0		26.0
Adjusted EBITDA		394.6		301.5		64.6		760.7
Capital expenditures		156.1		7.8		10.0		173.9

The following table presents a reconciliation of reportable segment Adjusted EBITDA to income before income tax expense:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2024		2023		2024		2023
Reconciliation of reportable segment Adjusted    EBITDA to income before income tax expense:
Total reportable segment Adjusted EBITDA	$	289.3	$	271.7	$	844.2	$	760.7
Less:
Depreciation expense		51.5		47.7		151.8		142.1
Unallocated general and administrative expenses		2.4		2.0		6.3		6.5
Interest expense, net		51.8		45.8		150.0		131.2
Income before income tax expense	$	183.6	$	176.2	$	536.1	$	480.9

Total assets for the reportable segments are as follows:

	September 30, 2024		December 31, 2023
(in millions)
Gathering	$	2,254.9	$	2,138.6
Processing and Storage(1)		1,017.8		1,048.4
Terminaling and Export		251.8		264.4
Total reportable segments assets		3,524.5		3,451.4
Interest and Other		622.4		338.1
Total consolidated assets	$	4,146.9	$	3,789.5

(1) Includes investment in equity investees of $88.5 million as of September 30, 2024 and $90.2 million as of December 31, 2023.