Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

Note 23 — Segment Information

We operate in two primary segments: (i) Gathering and Processing, and (ii) Logistics and Transportation (also referred to as the Downstream Business). Our reportable segments include operating segments that have been aggregated based on the nature of the products and services provided.

Our Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast and the Gulf of Mexico.

Our Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of our other businesses. The Logistics and Transportation segment also includes Grand Prix, which connects our gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with our Downstream facilities in Mont Belvieu, Texas. The associated

assets are generally connected to and supplied in part by our Gathering and Processing segment and, except for pipelines and smaller terminals, are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana.

Other contains the unrealized mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. Elimination of inter-segment transactions are reflected in the corporate and eliminations column.

Reportable segment information is shown in the following tables:

	Year Ended December 31, 2023
	Gathering and Processing		Logistics and Transportation		Other		Corporate and Eliminations			Total
Revenues
Sales of commodities	$	1,076.1	$	12,610.5	$	275.5	$	—		$	13,962.1
Fees from midstream services		1,366.5		731.7		—		—			2,098.2
		2,442.6		13,342.2		275.5		—			16,060.3
Intersegment revenues
Sales of commodities		4,786.3		267.9		—		(5,054.2	)		—
Fees from midstream services		2.6		45.7		—		(48.3	)		—
		4,788.9		313.6		—		(5,102.5	)		—
Revenues	$	7,231.5	$	13,655.8	$	275.5	$	(5,102.5	)	$	16,060.3
Operating margin (1)	$	2,082.2	$	1,948.7	$	275.5
Other financial information:
Total assets (2)	$	12,685.2	$	7,777.8	$	4.2	$	204.6		$	20,671.8
Goodwill	$	45.2	$	—	$	—	$	—		$	45.2
Capital expenditures	$	1,514.7	$	910.0	$	—	$	18.9		$	2,443.6

	Year Ended December 31, 2022
	Gathering and Processing		Logistics and Transportation		Other			Corporate and Eliminations			Total
Revenues
Sales of commodities	$	919.7	$	18,448.7	$	(302.4	)	$	—		$	19,066.0
Fees from midstream services		1,157.3		706.5		—			—			1,863.8
		2,077.0		19,155.2		(302.4	)		—			20,929.8
Intersegment revenues
Sales of commodities		9,169.4		541.7		—			(9,711.1	)		—
Fees from midstream services		0.6		45.2		—			(45.8	)		—
		9,170.0		586.9		—			(9,756.9	)		—
Revenues	$	11,247.0	$	19,742.1	$	(302.4	)	$	(9,756.9	)	$	20,929.8
Operating margin (1)	$	1,981.0	$	1,456.3	$	(302.4	)
Other financial information:
Total assets (2)	$	12,133.6	$	7,175.7	$	—		$	250.7		$	19,560.0
Goodwill	$	45.2	$	—	$	—		$	—		$	45.2
Capital expenditures	$	918.1	$	453.0	$	—		$	23.3		$	1,394.4

	Year Ended December 31, 2021
	Gathering and Processing		Logistics and Transportation		Other			Corporate and Eliminations			Total
Revenues
Sales of commodities	$	606.8	$	15,111.6	$	(115.9	)	$	—		$	15,602.5
Fees from midstream services		747.3		600.0		—			—			1,347.3
		1,354.1		15,711.6		(115.9	)		—			16,949.8
Intersegment revenues
Sales of commodities		6,067.9		409.5		—			(6,477.4	)		—
Fees from midstream services		3.5		38.6		—			(42.1	)		—
		6,071.4		448.1		—			(6,519.5	)		—
Revenues	$	7,425.5	$	16,159.7	$	(115.9	)	$	(6,519.5	)	$	16,949.8
Operating margin (1)	$	1,325.3	$	1,264.3	$	(115.9	)
Other financial information:
Total assets (2)	$	7,998.1	$	7,041.9	$	14.0		$	154.2		$	15,208.2
Goodwill	$	45.2	$	—	$	—		$	—		$	45.2
Capital expenditures	$	471.7	$	78.1	$	—		$	10.7		$	560.5

(1)Operating margin is calculated by subtracting Product purchases and fuel and Operating expenses from Revenues.

(2)Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.

The following table shows our consolidated revenues disaggregated by product and service for the periods presented:

	Year Ended December 31,
	2023		2022			2021
Sales of commodities:
Revenue recognized from contracts with customers:
Natural gas	$	2,421.3	$	5,470.2		$	3,523.9
NGL		10,580.2		13,785.2			12,210.8
Condensate and crude oil		519.5		565.3			358.4
		13,521.0		19,820.7			16,093.1
Non-customer revenue:
Derivative activities - Hedge		153.4		(373.0	)		(417.3	)
Derivative activities - Non-hedge (1)		287.7		(381.7	)		(73.3	)
		441.1		(754.7	)		(490.6	)
Total sales of commodities		13,962.1		19,066.0			15,602.5
Fees from midstream services:
Revenue recognized from contracts with customers:
Gathering and processing		1,342.8		1,137.2			730.3
NGL transportation, fractionation and services		261.1		285.1			190.6
Storage, terminaling and export		440.7		372.2			379.7
Other		53.6		69.3			46.7
Total fees from midstream services		2,098.2		1,863.8			1,347.3
Total revenues	$	16,060.3	$	20,929.8		$	16,949.8

(1)Represents derivative activities that are not designated as hedging instruments under ASC 815.

The following table shows a reconciliation of reportable segment Operating margin to Income (loss) before income taxes for the periods presented:

	Year Ended December 31,
	2023			2022			2021
Reconciliation of reportable segment operating margin to income (loss) before income taxes:
Gathering and Processing operating margin	$	2,082.2		$	1,981.0		$	1,325.3
Logistics and Transportation operating margin		1,948.7			1,456.3			1,264.3
Other operating margin		275.5			(302.4	)		(115.9	)
Depreciation and amortization expense		(1,329.6	)		(1,096.0	)		(870.6	)
General and administrative expense		(348.7	)		(309.7	)		(273.2	)
Other operating income (expense)		(1.5	)		(0.2	)		(12.4	)
Impairment of long-lived assets		—			—			(452.3	)
Interest expense, net		(687.8	)		(446.1	)		(387.9	)
Equity earnings (loss)		9.0			9.1			(23.9	)
Gain (loss) from financing activities		(2.1	)		(49.6	)		(16.6	)
Gain (loss) from sale of equity method investment		—			435.9			—
Other, net		(3.2	)		(15.1	)		0.1
Income (loss) before income taxes	$	1,942.5		$	1,663.2		$	436.9