XML 38 R22.htm IDEA: XBRL DOCUMENT v3.25.4
Business Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
In the first quarter of 2025, we reorganized our operating segments as a result of the way our CODM evaluates the performance of operations, develops strategy and allocates resources, including capital. Our sulfur services business, formerly reported under our soda and sulfur services reporting segment with our previously owned Alkali Business (see Note 4), is now reported under our onshore transportation and services reporting segment. As a result of this change, we now manage our businesses through three divisions that constitute our reportable segments. Our reportable segments are primarily organized around the different products and services we provide to our customers and include the following: (i) offshore pipeline transportation; (ii) marine transportation; and (iii) onshore transportation and services.
Our offshore pipeline transportation segment consists of our offshore transportation of crude oil and natural gas in the Gulf of America, which focuses on providing a suite of services to integrated and large independent energy companies.
Our marine transportation segment provides waterborne transportation of petroleum products (primarily fuel oil, asphalt and other heavy refined products) and crude oil throughout North America primarily to customers such as refiners and large energy companies.
Our onshore transportation and services segment provides services through a combination of purchasing, marketing, storing, and blending crude oil and transporting crude oil and refined products, primarily to crude oil refiners and producers and performs the processing of high sulfur (or “sour”) gas streams for refineries to remove the sulfur and selling the related by-product, NaHS (our sulfur services business).
Substantially all of our revenues are derived from, and substantially all of our assets are located in, the United States.
Our CODM evaluates segment performance based on a variety of measures including Segment Margin, segment volumes, and, where relevant, capital investment.
Segment Margin is viewed by our CODM as the primary measure that is most aligned with the measurement principles most consistent with those used in calculating the corresponding amounts in our Consolidated Financial Statements. We define Segment Margin as revenues less product costs, operating expenses (excluding non-cash gains and charges, such as depreciation, amortization and accretion and non-cash effects of our long-term incentive compensation plan), segment general and administrative expenses, all of which are net of the effects of our noncontrolling interests and only associated with our continuing operations, plus our equity in distributable cash generated by our equity investees.
Segment information for each year presented below is as follows:
Year Ended December 31, 2025
Offshore Pipeline Transportation Marine TransportationOnshore Transportation and ServicesTotal
Revenues:
External customers$531,035 $319,498 $779,882 $1,630,415 
Intersegment(1)
863 — (863)— 
Total revenues of reportable segments(2)
$531,898 $319,498 $779,019 $1,630,415 
Segment Operating Expenses(145,005)(204,830)(252,017)(601,852)
Segment Product Costs— — (451,962)(451,962)
Other Segment Items(3)
(1,199)1,022 1,429 1,252 
Segment Margin(4)
$385,694 $115,690 $76,469 $577,853 
Year Ended December 31, 2024
Offshore Pipeline TransportationMarine TransportationOnshore Transportation and ServicesTotal
Total revenues of reportable segments(2)(5)
$404,919 $321,616 $934,299 $1,660,834 
Segment Operating Expenses(117,207)(196,602)(269,126)(582,935)
Segment Product Costs— — (599,925)(599,925)
Other Segment Items(3)
45,074 (11)6,105 51,168 
Segment Margin(4)
$332,786 $125,003 $71,353 $529,142 
Year Ended December 31, 2023
Offshore Pipeline TransportationMarine TransportationOnshore Transportation and ServicesTotal
Revenues:
External customers$377,842 $327,464 $1,016,017 $1,721,323 
Intersegment(1)
4,312 — (4,312)— 
Total revenues of reportable segments(2)
$382,154 $327,464 $1,011,705 $1,721,323 
Segment Operating Expenses(96,025)(218,403)(300,921)(615,349)
Segment Product Costs— — (637,179)(637,179)
Other Segment Items(3)
120,543 1,362 (422)121,483 
Segment Margin(4)
$406,672 $110,423 $73,183 $590,278 
(1)Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.
(2)Total revenues of reportable segments in the table above agrees to “Total revenues” as seen in our Consolidated Statements of Operations for each respective year. See Note 3 for more detailed information on the revenues reported by major category of products and services by reportable segment.
(3)Other Segment Items primarily includes adjustments related to the difference in timing of cash receipts for certain contractual agreements (applicable to our offshore pipeline transportation and onshore transportation and services segments), segment general and administrative expenses less the non-cash effects of our LTIP plans (applicable to all reportable segments), net effects of our noncontrolling interests (applicable to our offshore pipeline transportation segment), adjustments to include distributable cash generated by our equity investees (applicable to our offshore pipeline transportation and onshore transportation and services segments), and unrealized gains and losses from the valuation of our commodity derivative transactions (excluding fair value hedges) (applicable to onshore transportation and service segment).
(4)A reconciliation of Income (loss) from continuing operations before income taxes to total Segment Margin to for each year is presented below.
(5)There were no intersegment revenues for the year ended December 31, 2024.
Total assets by reportable segment were as follows:
December 31, 2025December 31, 2024
Offshore pipeline transportation$2,755,595 $2,748,296 
Marine transportation618,474 641,082 
Onshore transportation and services1,452,971 1,401,238 
Total reportable segment assets$4,827,040 $4,790,616 
Other assets33,663 39,656 
Assets held for discontinued operations— 2,207,420 
Total consolidated assets$4,860,703 $7,037,692 
Total growth and maintenance capital expenditures for fixed and intangible assets (including enhancements to existing facilities and construction of growth projects as well as contributions to equity investees) by reportable segment for the years ended December 31, 2025 and 2024 were as follows:
December 31, 2025December 31, 2024
Offshore pipeline transportation(1)
$85,728 $255,640 
Marine transportation52,383 91,752 
Onshore transportation and services6,456 16,991 
Total reportable segment capital expenditures$144,567 $364,383 
Other1,158 12,044 
Total consolidated capital expenditures$145,725 $376,427 
(1)Capital expenditures in our offshore pipeline transportation segment for 2025 and 2024 represent 100% of the costs incurred, including those funded by our noncontrolling interest holder.
Reconciliation of Income (loss) from continuing operations before income taxes to total Segment Margin:
 Year Ended
December 31,
202520242023
Income (loss) from continuing operations before income taxes$31,311 $(48,995)$47,633 
Net income attributable to noncontrolling interests(47,163)(30,940)(28,627)
Corporate general and administrative expenses89,495 57,285 69,225 
Depreciation, amortization and accretion243,383 217,776 210,657 
Interest expense, net264,729 261,875 219,065 
Adjustment to include distributable cash generated by equity investees not included in income and exclude equity in investees net income(1)
21,909 23,461 24,635 
Unrealized losses (gains) on derivative transactions excluding fair value hedges, net of changes in inventory value(117)80 88 
Other non-cash items(15,576)(9,169)(13,366)
Loss on extinguishment of debt (Note 11)
9,779 15,367 4,627 
Differences in timing of cash receipts for certain contractual arrangements(2)
(19,897)(601)56,341 
Impairment expense (Note 10)
— 43,003 — 
Total Segment Margin$577,853 $529,142 $590,278 
(1)Includes distributions attributable to the period and received during or promptly following such period.
(2)Includes the difference in timing of cash receipts from customers during the period and the revenue we recognize in accordance with GAAP on our related contracts.