Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2024

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:

	Three Months Ended  September 30,				Nine Months Ended  September 30,
thousands	2024		2023		2024		2023
Revenue from customers
Service revenues – fee based	$	814,319	$	695,547	$	2,389,366	$	2,004,920
Service revenues – product based	49,115		48,446		177,321		142,212
Product sales	19,673		31,652		109,076		100,336
Total revenue from customers	883,107		775,645		2,675,763		2,247,468
Revenue from other than customers
Other	255		368		957		800
Total revenues and other	$	883,362	$	776,013	$	2,676,720	$	2,248,268

Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $664.0 million and $661.6 million as of September 30, 2024, and December 31, 2023, respectively.

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

thousands
Contract assets balance at December 31, 2023	$	39,292
Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period (1)	(5,683)
Additional estimated revenues recognized (2)	5,567
Contract assets balance at September 30, 2024	$	39,176
Contract assets at September 30, 2024
Other current assets	$	11,931
Other assets	27,245
Total contract assets from contracts with customers	$	39,176

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(1)Includes $(1.8) million for the three months ended September 30, 2024.

(2)Includes $1.8 million for the three months ended September 30, 2024.

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:

thousands
Contract liabilities balance at December 31, 2023	$	445,499
Cash received or receivable, excluding revenues recognized during the period (1)	158,282
Revenues recognized that were included in the contract liability balance at the beginning of the period (2)	(22,388)
Contract liabilities balance at September 30, 2024	$	581,393
Contract liabilities at September 30, 2024
Accrued liabilities	$	10,076
Other liabilities	571,317
Total contract liabilities from contracts with customers	$	581,393

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(1)Includes $34.7 million for the three months ended September 30, 2024.

(2)Includes $(6.5) million for the three months ended September 30, 2024.

Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2024, are presented in the table below. 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
Remainder of 2024	$	296,754
2025	1,111,497
2026	1,049,918
2027	949,426
2028	773,160
Thereafter	2,076,819
Total	$	6,257,574