Segment Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Information

Note 15 — 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.

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 the Grand Prix NGL Pipeline, which connects our gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with our Downstream facilities in Mont Belvieu, Texas. Our Downstream facilities 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:

	Three Months Ended March 31, 2025
	Gathering and Processing		Logistics and Transportation		Total Reportable Segments		Other			Corporate and Eliminations			Total
Revenues
Sales of commodities	$	200.7	$	3,932.5	$	4,133.2	$	(248.8	)	$	—		$	3,884.4
Fees from midstream services		475.1		202.0		677.1		—			—			677.1
		675.8		4,134.5		4,810.3		(248.8	)		—			4,561.5
Intersegment revenues
Sales of commodities		1,517.0		59.4		1,576.4		—			(1,576.4	)		—
Fees from midstream services		0.2		7.1		7.3		—			(7.3	)		—
		1,517.2		66.5		1,583.7		—			(1,583.7	)		—
Revenues	$	2,193.0	$	4,201.0	$	6,394.0	$	(248.8	)	$	(1,583.7	)	$	4,561.5
Operating expenses	$	208.2	$	95.5	$	303.7	$	—
Other segment items (1)		1,382.6		3,458.8		4,841.4		—
Operating margin		602.2		646.7		1,248.9		(248.8	)
Other financial information:
Total assets (2)	$	13,727.9	$	8,821.1	$	22,549.0	$	—		$	251.3		$	22,800.3
Goodwill		45.2		—		45.2		—			—			45.2
Capital expenditures		433.2		174.7		607.9		—			10.4			618.3

	Three Months Ended March 31, 2024
	Gathering and Processing			Logistics and Transportation		Total Reportable Segments		Other			Corporate and Eliminations			Total
Revenues
Sales of commodities	$	272.7		$	3,691.8	$	3,964.5	$	(22.1	)	$	—		$	3,942.4
Fees from midstream services		413.3			206.7		620.0		—			—			620.0
		686.0			3,898.5		4,584.5		(22.1	)		—			4,562.4
Intersegment revenues
Sales of commodities		1,131.0			46.9		1,177.9		—			(1,177.9	)		—
Fees from midstream services		(2.2	)		6.9		4.7		—			(4.7	)		—
		1,128.8			53.8		1,182.6		—			(1,182.6	)		—
Revenues	$	1,814.8		$	3,952.3	$	5,767.1	$	(22.1	)	$	(1,182.6	)	$	4,562.4
Operating expenses	$	188.1		$	90.0	$	278.1	$	—
Other segment items (1)		1,070.3			3,330.2		4,400.5		—
Operating margin		556.4			532.1		1,088.5		(22.1	)
Other financial information:
Total assets (2)	$	12,815.6		$	7,870.1	$	20,685.7	$	3.1		$	157.3		$	20,846.1
Goodwill		45.2			—		45.2		—			—			45.2
Capital expenditures		435.0			293.6		728.6		—			1.1			729.7

(1)“Other segment items” represents Product purchases and fuel.

(2)Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, margin deposit, prepaids, property, plant and equipment and debt issuance costs for our revolving credit facility.

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

	Three Months Ended March 31,
	2025			2024
Sales of commodities:
Revenue recognized from contracts with customers:
Natural gas	$	681.9		$	494.6
NGL		3,376.8			3,345.7
Condensate and crude oil		117.0			137.2
		4,175.7			3,977.5
Non-customer revenue:
Derivative activities - Hedge		(6.1	)		(3.2	)
Derivative activities - Non-hedge (1)		(285.2	)		(31.9	)
		(291.3	)		(35.1	)
Total sales of commodities		3,884.4			3,942.4
Fees from midstream services:
Revenue recognized from contracts with customers:
Gathering and processing		469.0			405.9
NGL transportation, fractionation and services	76.8			73.6
Storage, terminaling and export		131.8			125.7
Other		(0.5	)	14.8
Total fees from midstream services		677.1			620.0
Total revenues	$	4,561.5		$	4,562.4

(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:

	Three Months Ended March 31,
	2025			2024
Reconciliation of reportable segment operating margin to income (loss) before income taxes:
Total reportable segments operating margin	$	1,248.9		$	1,088.5
Other operating margin		(248.8	)		(22.1	)
Depreciation and amortization expense		(367.6	)		(340.5	)
General and administrative expense		(94.5	)		(86.5	)
Other operating income (expense)		5.3			—
Interest expense, net		(197.1	)		(228.6	)
Equity earnings (loss)		5.5			2.8
Other, net		0.3			1.7
Income (loss) before income taxes	$	352.0		$	415.3