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Acquisitions
 9 Months Ended
Sep. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions
Note 12. Acquisitions
Acquisition of Oxy Natural Gas Gathering Affiliate
In July 2025, we entered into definitive agreements to acquire an affiliate of Occidental Petroleum Corporation (“Oxy”) that owns approximately 200 miles of natural gas gathering pipelines in the Midland Basin and to provide natural gas gathering and processing services to Oxy for production from approximately 73,000 dedicated acres across four counties in the Midland Basin.
This acquisition, which closed on August 22, 2025, did not meet the definition of a business under ASC 805, Business Combinations, and was therefore accounted for as an asset acquisition. Asset acquisitions require, among other considerations, that the total cost of the acquisition be allocated to the assets acquired and liabilities assumed on a relative fair value basis. Additionally, transaction costs incurred in connection with an asset acquisition are capitalized as part of the total cost of the acquired assets.
The total cost of the acquisition was $583 million, consisting of $581 million in cash consideration and $2 million in transaction-related costs. This amount is reflected as a component of “Capital expenditures” on our Unaudited Condensed Consolidated Statements of Consolidated Cash Flows.
The following table summarizes the allocation of the total cost to the assets acquired and liabilities assumed:
Recognized amounts of assets acquired and liabilities assumed (1):
Property, plant and equipment
$223 
Contract-based intangible asset
360 
Total net assets acquired$583 
(1)As part of this transaction, we acquired other assets and assumed liabilities that net to a negligible amount. Acquired other assets primarily included accounts receivable, and assumed liabilities primarily included accounts payable and asset retirement obligations. None of these amounts were considered individually significant.
The fair value of the acquired property, plant and equipment was determined using the cost approach and consisted of pipelines and related equipment. See Note 4 for additional information regarding our property, plant and equipment.

The contract-based intangible asset represents the estimated value assigned to the long-term gathering and processing services agreement with Oxy, which is expected to renew in approximately 15 years under similar commercial terms. The fair value of the contract-based intangible asset was determined using the income approach, specifically a discounted cash flow analysis, which incorporated Level 3 inputs including management’s long-term forecast of cash flows generated by the gathering and processing services agreement, based on the estimated life of the hydrocarbon resource basin served, resource depletion rates, and expected contract renewals. The intangible asset will be amortized on a straight-line basis over approximately 23 years.
Acquisition of Pinon Midstream
On October 28, 2024, we acquired Pinon Midstream for $953 million in cash consideration. We funded this transaction using cash on hand.
Pinon Midstream’s assets include 43 miles of natural gas gathering and redelivery pipelines, five 3-stage compressor stations, 270 million cubic feet per day (“MMcf/d”) of hydrogen sulfide and carbon dioxide treating facilities and two high capacity acid gas injection wells. This acquisition was accounted for under the acquisition method in accordance with ASC 805, Business Combinations.
The following table presents the final fair value allocation of assets acquired and liabilities assumed in the acquisition at October 28, 2024 (the effective date of the acquisition).
Purchase price for 100% interest in Pinon Midstream
$953 
Recognized amounts of identifiable assets acquired and liabilities assumed (1):
Cash and cash equivalents$4 
Property, plant and equipment410 
Contract-based intangible asset435 
Total identifiable net assets$849 
Goodwill$104 
(1)As part of this transaction, we acquired other assets and assumed liabilities that net to a negligible amount. Acquired other assets primarily included accounts receivable and ROU assets. Assumed liabilities primarily included accounts payable and operating lease liabilities. None of these amounts were considered individually significant.
On a historical pro forma basis, our revenues, costs and expenses, operating income, net income attributable to common unitholders and earnings per unit for the three and nine months ended September 30, 2024 would not have differed materially from those we actually reported had the acquisition been completed on January 1, 2024 rather than October 28, 2024.
Acquisitions
Note 12. Acquisitions
Acquisition of Oxy Natural Gas Gathering Affiliate
In July 2025, we entered into definitive agreements to acquire an affiliate of Occidental Petroleum Corporation (“Oxy”) that owns approximately 200 miles of natural gas gathering pipelines in the Midland Basin and to provide natural gas gathering and processing services to Oxy for production from approximately 73,000 dedicated acres across four counties in the Midland Basin.
This acquisition, which closed on August 22, 2025, did not meet the definition of a business under ASC 805, Business Combinations, and was therefore accounted for as an asset acquisition. Asset acquisitions require, among other considerations, that the total cost of the acquisition be allocated to the assets acquired and liabilities assumed on a relative fair value basis. Additionally, transaction costs incurred in connection with an asset acquisition are capitalized as part of the total cost of the acquired assets.
The total cost of the acquisition was $583 million, consisting of $581 million in cash consideration and $2 million in transaction-related costs. This amount is reflected as a component of “Capital expenditures” on our Unaudited Condensed Consolidated Statements of Consolidated Cash Flows.
The following table summarizes the allocation of the total cost to the assets acquired and liabilities assumed:
Recognized amounts of assets acquired and liabilities assumed (1):
Property, plant and equipment
$223 
Contract-based intangible asset
360 
Total net assets acquired$583 
(1)As part of this transaction, we acquired other assets and assumed liabilities that net to a negligible amount. Acquired other assets primarily included accounts receivable, and assumed liabilities primarily included accounts payable and asset retirement obligations. None of these amounts were considered individually significant.
The fair value of the acquired property, plant and equipment was determined using the cost approach and consisted of pipelines and related equipment. See Note 4 for additional information regarding our property, plant and equipment.

The contract-based intangible asset represents the estimated value assigned to the long-term gathering and processing services agreement with Oxy, which is expected to renew in approximately 15 years under similar commercial terms. The fair value of the contract-based intangible asset was determined using the income approach, specifically a discounted cash flow analysis, which incorporated Level 3 inputs including management’s long-term forecast of cash flows generated by the gathering and processing services agreement, based on the estimated life of the hydrocarbon resource basin served, resource depletion rates, and expected contract renewals. The intangible asset will be amortized on a straight-line basis over approximately 23 years.
Acquisition of Pinon Midstream
On October 28, 2024, we acquired Pinon Midstream for $953 million in cash consideration. We funded this transaction using cash on hand.
Pinon Midstream’s assets include 43 miles of natural gas gathering and redelivery pipelines, five 3-stage compressor stations, 270 million cubic feet per day (“MMcf/d”) of hydrogen sulfide and carbon dioxide treating facilities and two high capacity acid gas injection wells. This acquisition was accounted for under the acquisition method in accordance with ASC 805, Business Combinations.
The following table presents the final fair value allocation of assets acquired and liabilities assumed in the acquisition at October 28, 2024 (the effective date of the acquisition).
Purchase price for 100% interest in Pinon Midstream
$953 
Recognized amounts of identifiable assets acquired and liabilities assumed (1):
Cash and cash equivalents$4 
Property, plant and equipment410 
Contract-based intangible asset435 
Total identifiable net assets$849 
Goodwill$104 
(1)As part of this transaction, we acquired other assets and assumed liabilities that net to a negligible amount. Acquired other assets primarily included accounts receivable and ROU assets. Assumed liabilities primarily included accounts payable and operating lease liabilities. None of these amounts were considered individually significant.
On a historical pro forma basis, our revenues, costs and expenses, operating income, net income attributable to common unitholders and earnings per unit for the three and nine months ended September 30, 2024 would not have differed materially from those we actually reported had the acquisition been completed on January 1, 2024 rather than October 28, 2024.