Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

2. REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table summarizes revenue from contracts with customers:

	Year Ended December 31,
thousands	2022		2021		2020
Revenue from customers
Service revenues – fee based	$	2,602,053	$	2,283,584	$	2,360,680
Service revenues – product based	249,692		122,584		48,369
Product sales	399,023		290,947		138,559
Total revenue from customers	3,250,768		2,697,115		2,547,608
Revenue from other than customers
Lease revenue (1)	—		179,251		223,643
Other	953		789		1,341
Total revenues and other	$	3,251,721	$	2,877,155	$	2,772,592

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(1)Includes fixed- and variable-lease revenue from an operating and maintenance agreement entered into with Occidental. See Operating leases within Note 6.

Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $545.0 million and $424.6 million as of December 31, 2022 and 2021, respectively.

Contract assets primarily relate to (i) accrued deficiency fees the Partnership expects to charge customers once the related performance periods are completed and (ii) revenue accrued but not yet billed under cost-of-service contracts with fixed and variable fees. The following table summarizes activity related to contract assets from contracts with customers:

	Year Ended December 31,
thousands	2022		2021
Contract assets balance at beginning of year	$	22,557	$	56,344
Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period	(7,683)		(10,380)
Additional estimated revenues recognized	5,531		120
Cumulative catch-up adjustment for change in estimated consideration	2,156		(23,527)
Contract assets balance at end of year	$	22,561	$	22,557
	December 31,
thousands	2022		2021
Other current assets	$	3,381	$	5,307
Other assets	19,180		17,250
Total contract assets from contracts with customers	$	22,561	$	22,557

2. REVENUE FROM CONTRACTS WITH CUSTOMERS

Contract liabilities primarily relate to (i) fixed and variable fees under cost-of-service contracts that are received from customers for which revenue recognition is deferred, (ii) aid-in-construction payments received from customers that must be recognized over the expected period of customer benefit, and (iii) fees that are charged to customers for only a portion of the contract term and must be recognized as revenues over the expected period of customer benefit. The following table summarizes activity related to contract liabilities from contracts with customers:

	Year Ended December 31,
thousands	2022		2021
Contract liabilities balance at beginning of year	$	313,146	$	266,937
Cash received or receivable, excluding revenues recognized during the period	71,097		83,326
Revenues recognized that were included in the contract liability balance at the beginning of the period	(16,158)		(17,265)
Cumulative catch-up adjustment for change in estimated consideration	1,200		(19,852)
Contract liabilities balance at end of year	$	369,285	$	313,146
	December 31,
thousands	2022		2021
Accrued liabilities	$	20,903	$	27,763
Other liabilities	348,382		285,383
Total contract liabilities from contracts with customers	$	369,285	$	313,146

Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2022, are presented in the following table. The Partnership applies the optional exemptions in Revenue from Contracts with Customers (Topic 606) and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations. Therefore, the following table represents only a portion of expected future revenues from existing contracts as most future revenues from customers are dependent on future variable customer volumes and, in some cases, variable commodity prices for those volumes.

thousands
2023	$	1,086,712
2024	1,107,224
2025	1,024,386
2026	874,615
2027	784,781
Thereafter	1,825,720
Total	$	6,703,438