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Segments

9 Months Ended

Sep. 30, 2020

Financial Information

We have three operating and reportable segments: (i) gathering and processing operations; (ii) storage and transportation operations; and (iii) marketing, supply and logistics operations. Our corporate operations include all general and administrative expenses that are not allocated to our reportable segments. We assess the performance of our operating segments based on EBITDA, which is defined as income before income taxes, plus interest and debt expense, net and depreciation, amortization and accretion expense.

Below is a reconciliation of CEQP’s net income (loss) to EBITDA (in millions):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net income (loss)	$	4.6	$	33.6	$	(43.1)	$	272.7
Add:
Interest and debt expense, net	33.7		30.6		100.3		83.3

Provision (benefit) for income taxes	—		—		(0.1)		0.3
Depreciation, amortization and accretion	60.8		51.5		177.9		140.6
EBITDA	$	99.1	$	115.7	$	235.0	$	496.9

Below is a reconciliation of CMLP’s net income (loss) to EBITDA (in millions):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net income (loss)	$	2.3	$	31.2	$	(50.1)	$	265.7
Add:
Interest and debt expense, net	33.7		30.6		100.3		83.3

Provision (benefit) for income taxes	—		(0.1)		(0.2)		0.2
Depreciation, amortization and accretion	64.2		55.1		188.4		151.2
EBITDA	$	100.2	$	116.8	$	238.4	$	500.4

The following tables summarize CEQP’s and CMLP’s reportable segment data for the three and nine months ended September 30, 2020 and 2019 (in millions). Intersegment revenues included in the following tables are accounted for as arms-length transactions that apply our revenue recognition policies as described in our 2019 Annual Report on Form 10-K. Included in earnings from unconsolidated affiliates, net below was approximately $9.9 million and $9.7 million of our proportionate share of interest expense, depreciation and amortization expense and gains (losses) on long-lived assets, net recorded by our equity investments for the three months ended September 30, 2020 and 2019 and $33.2 million and $32.7 million for the nine months ended September 30, 2020 and 2019.

Crestwood Equity


	Three Months Ended September 30, 2020
	Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Corporate		Total
Revenues	$	145.2	$	3.5	$	370.5	$	—	$	519.2
Intersegment revenues	44.9		1.9		(46.8)		—		—
Costs of product/services sold	63.2		—		295.5		—		358.7
Operations and maintenance expense	19.4		0.7		10.9		—		31.0
General and administrative expense	—		—		—		19.6		19.6
Gain (loss) on long-lived assets, net	(19.1)		—		(2.4)		0.2		(21.3)


Earnings from unconsolidated affiliates, net	0.5		10.0		—		—		10.5

EBITDA	$	88.9	$	14.7	$	14.9	$	(19.4)	$	99.1
Goodwill	$	45.9	$	—	$	92.7	$	—	$	138.6
Total assets	$	3,544.2	$	955.1	$	766.9	$	28.0	$	5,294.2


	Three Months Ended September 30, 2019
	Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Corporate		Total
Revenues	$	257.8	$	4.1	$	561.7	$	—	$	823.6
Intersegment revenues	33.6		3.5		(37.1)		—		—
Costs of product/services sold	164.1		0.1		493.2		—		657.4
Operations and maintenance expense	27.5		1.1		7.4		—		36.0
General and administrative expense	—		—		—		24.9		24.9
Loss on long-lived assets, net	(0.1)		—		—		—		(0.1)


Earnings (loss) from unconsolidated affiliates, net	(0.5)		10.9		—		—		10.4
Other income, net	—		—		—		0.1		0.1
EBITDA	$	99.2	$	17.3	$	24.0	$	(24.8)	$	115.7


	Nine Months Ended September 30, 2020
	Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Corporate		Total
Revenues	$	474.6	$	10.1	$	1,115.1	$	—	$	1,599.8
Intersegment revenues	99.2		6.9		(106.1)		—		—
Costs of product/services sold	192.8		0.3		925.7		—		1,118.8
Operations and maintenance expense	65.7		2.8		31.7		—		100.2
General and administrative expense	—		—		—		64.0		64.0
Gain (loss) on long-lived assets, net	(23.7)		—		(2.6)		0.2		(26.1)

Goodwill impairment	(80.3)		—		—		—		(80.3)
Earnings from unconsolidated affiliates, net	0.3		24.1		—		—		24.4
Other income, net	—		—		—		0.2		0.2
EBITDA	$	211.6	$	38.0	$	49.0	$	(63.6)	$	235.0
Goodwill	$	45.9	$	—	$	92.7	$	—	$	138.6
Total assets	$	3,544.2	$	955.1	$	766.9	$	28.0	$	5,294.2


	Nine Months Ended September 30, 2019
	Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Corporate		Total
Revenues	$	639.8	$	16.8	$	1,685.6	$	—	$	2,342.2
Intersegment revenues	111.8		10.3		(122.1)		—		—
Costs of product/services sold	411.0		0.1		1,479.1		—		1,890.2
Operations and maintenance expense	70.2		3.0		26.1		—		99.3
General and administrative expense	—		—		—		84.4		84.4
Gain (loss) on long-lived assets, net	(2.1)		—		(0.2)		0.2		(2.1)

Gain on acquisition	209.4		—		—		—		209.4
Earnings (loss) from unconsolidated affiliates, net	(3.5)		24.5		—		—		21.0
Other income, net	—		—		—		0.3		0.3
EBITDA	$	474.2	$	48.5	$	58.1	$	(83.9)	$	496.9

Crestwood Midstream


	Three Months Ended September 30, 2020
	Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Corporate		Total
Revenues	$	145.2	$	3.5	$	370.5	$	—	$	519.2
Intersegment revenues	44.9		1.9		(46.8)		—		—
Costs of product/services sold	63.2		—		295.5		—		358.7
Operations and maintenance expense	19.4		0.7		10.9		—		31.0
General and administrative expense	—		—		—		18.5		18.5
Gain (loss) on long-lived assets, net	(19.1)		—		(2.4)		0.2		(21.3)


Earnings from unconsolidated affiliates, net	0.5		10.0		—		—		10.5
EBITDA	$	88.9	$	14.7	$	14.9	$	(18.3)	$	100.2
Goodwill	$	45.9	$	—	$	92.7	$	—	$	138.6
Total assets	$	3,692.9	$	955.1	$	766.9	$	23.9	$	5,438.8


	Three Months Ended September 30, 2019
	Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Corporate		Total
Revenues	$	257.8	$	4.1	$	561.7	$	—	$	823.6
Intersegment revenues	33.6		3.5		(37.1)		—		—
Costs of product/services sold	164.1		0.1		493.2		—		657.4
Operations and maintenance expense	27.5		1.1		7.4		—		36.0
General and administrative expense	—		—		—		23.7		23.7
Loss on long-lived assets, net	(0.1)		—		—		—		(0.1)


Earnings (loss) from unconsolidated affiliates, net	(0.5)		10.9		—		—		10.4
EBITDA	$	99.2	$	17.3	$	24.0	$	(23.7)	$	116.8


	Nine Months Ended September 30, 2020
	Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Corporate		Total
Revenues	$	474.6	$	10.1	$	1,115.1	$	—	$	1,599.8
Intersegment revenues	99.2		6.9		(106.1)		—		—
Costs of product/services sold	192.8		0.3		925.7		—		1,118.8
Operations and maintenance expense	65.7		2.8		31.7		—		100.2
General and administrative expense	—		—		—		60.4		60.4
Gain (loss) on long-lived assets, net	(23.7)		—		(2.6)		0.2		(26.1)
Goodwill impairment	(80.3)		—		—		—		(80.3)

Earnings from unconsolidated affiliates, net	0.3		24.1		—		—		24.4
EBITDA	$	211.6	$	38.0	$	49.0	$	(60.2)	$	238.4
Goodwill	$	45.9	$	—	$	92.7	$	—	$	138.6
Total assets	$	3,692.9	$	955.1	$	766.9	$	23.9	$	5,438.8


	Nine Months Ended September 30, 2019
	Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Corporate		Total
Revenues	$	639.8	$	16.8	$	1,685.6	$	—	$	2,342.2
Intersegment revenues	111.8		10.3		(122.1)		—		—
Costs of product/services sold	411.0		0.1		1,479.1		—		1,890.2
Operations and maintenance expense	70.2		3.0		26.1		—		99.3
General and administrative expense	—		—		—		80.6		80.6
Gain (loss) on long-lived assets, net	(2.1)		—		(0.2)		0.2		(2.1)

Gain on acquisition	209.4		—		—		—		209.4
Earnings (loss) from unconsolidated affiliates, net	(3.5)		24.5		—		—		21.0
EBITDA	$	474.2	$	48.5	$	58.1	$	(80.4)	$	500.4

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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