Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2025

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  March 31,
thousands	2025		2024
Revenue from customers
Service revenues – fee based	$	823,197	$	781,262
Service revenues – product based	59,252		66,740
Product sales	34,469		39,292
Total revenue from customers	916,918		887,294
Revenue from other than customers
Other	198		435
Total revenues and other	$	917,116	$	887,729

Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets, were $666.9 million and $693.9 million as of March 31, 2025, and December 31, 2024, 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, 2024	$	43,186
Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period	(1,822)
Additional estimated revenues recognized	2,055
Contract assets balance at March 31, 2025	$	43,419
Contract assets at March 31, 2025
Other current assets	$	15,415
Other assets	28,004
Total contract assets from contracts with customers	$	43,419

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, 2024	$	610,571
Cash received or receivable, excluding revenues recognized during the period	33,735
Revenues recognized that were included in the contract liability balance at the beginning of the period	(3,867)
Contract liabilities balance at March 31, 2025	$	640,439
Contract liabilities at March 31, 2025
Accrued liabilities	$	10,878
Other liabilities	629,561
Total contract liabilities from contracts with customers	$	640,439

Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2025, 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 2025	$	845,146
2026	1,163,984
2027	1,143,131
2028	959,144
2029	1,459,072
Thereafter	1,769,243
Total	$	7,339,720