Property, Plant and Equipment

12 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Our property, plant and equipment consists of the following at the dates indicated:


	Estimated			March 31,
Description	Useful Lives			2024		2023
	(in years)			(in thousands)
Water treatment facilities and equipment	3	-	30	$	2,055,565	$	2,040,792
Pipeline and related facilities	30	-	40	266,129		265,253
Crude oil tanks and related equipment	2	-	30	226,048		221,881
Natural gas liquids terminal and storage assets	2	-	30	167,633		160,939
Buildings and leasehold improvements	3	-	40	122,878		130,119
Vehicles and railcars (1)	3	-	25	91,715		92,640
Land				70,270		89,474
Information technology equipment	3	-	7	33,907		35,884
Tank bottoms and linefill (2)				28,269		40,001
Other	3	-	20	2,552		10,908
Construction in progress				43,010		33,673
Gross property, plant and equipment				3,107,976		3,121,564
Accumulated depreciation				(1,011,274)		(898,184)
Net property, plant and equipment				$	2,096,702	$	2,223,380

(1) Includes a finance lease right-of-use asset of $0.1 million at March 31, 2024 and 2023. The accumulated amortization related to this finance lease is included within accumulated depreciation.

(2) Tank bottoms, which are product volumes required for the operation of storage tanks, are recorded at historical cost. We recover tank bottoms when the storage tanks are removed from service. Linefill, which represents our portion of the product volume required for the operation of the proportionate share of a pipeline we own, is recorded at historical cost.

Amounts in the table above do not include property, plant and equipment and accumulated depreciation related to the sale of certain freshwater water solutions facilities, certain saltwater disposal assets and certain real estate, as these amounts have been classified as assets held for sale within our March 31, 2024 consolidated balance sheet (see Note 17).

The following table summarizes depreciation expense and capitalized interest expense for the periods indicated:


	Year Ended March 31,
	2024		2023		2022
	(in thousands)
Depreciation expense	$	198,542	$	196,129	$	203,783
Capitalized interest expense	$	1,561	$	945	$	916

We record (gains) losses from the sales of property, plant and equipment and any write-downs in value due to impairment within loss on disposal or impairment of assets, net in our consolidated statement of operations. The following table summarizes (gains) losses on the disposal or impairment of property, plant and equipment by segment for the periods indicated:


	Year Ended March 31,
	2024		2023		2022
	(in thousands)
Water Solutions (1)	$	38,938	$	56,644	$	28,068
Crude Oil Logistics	2,910		18,944		(3,194)
Liquids Logistics (2)	(810)		10,135		11,750
Corporate and Other	(720)		(1,214)		—
Total	$	40,318	$	84,509	$	36,624

(1) Amounts do not include the loss recognized on the sale of certain saltwater disposal assets discussed in Note 17.

(2) Amounts do not include the gain recognized on the sale of three natural gas liquids terminals discussed in Note 17.

During the year ended March 31, 2024, the following transactions were recorded:

•A net loss of $35.9 million primarily related to the write down of the value of certain saltwater disposal wells as well as the abandonment of certain capital projects and the retirement of certain assets in our Water Solutions segment.

•A net loss of $6.9 million primarily related to the sale of certain assets in our Water Solutions segment.

•A gain of $3.9 million from insurance recoveries for certain saltwater disposal facilities and boosters damaged in a prior period in our Water Solutions segment.

•A loss of $2.9 million related to the retirement or sale of certain assets in our Crude Oil Logistics segment.

•A gain of $0.8 million on the sale of land in our Liquids Logistics segment.

•A gain of $0.7 million on the sale of our plane in Corporate and Other.

During the year ended March 31, 2023, the following transactions were recorded:

•A net loss of $26.3 million primarily related to the sale of certain assets in our Water Solutions segment.

•A net loss of $21.8 million to write down the value of an inactive saltwater disposal facility and damaged equipment at another saltwater disposal facility, as well as the abandonment of certain capital projects and the retirement of certain assets in our Water Solutions segment.

•A net loss of $20.0 million related to the impairment of an underperforming crude oil terminal in our Crude Oil Logistics segment.

•A net loss of $10.0 million related to the impairment of several underperforming natural gas liquids terminals in our Liquids Logistics segment.

•A gain of $2.1 million from an insurance recovery for a saltwater disposal facility damaged in a prior period in our Water Solutions segment.

During the year ended March 31, 2022, the following transactions were recorded:

•A net loss of $22.3 million related to write-down or write off of certain assets, including facilities damaged by lightning strikes and abandoned projects, and the sale of certain other miscellaneous assets in our Water Solutions segment.

•A loss of $11.8 million on the sale of a natural gas liquids terminals in our Liquids Logistics segment.

•An impairment charge of $5.8 million to write down the value of an inactive saltwater disposal facility that we do not expect to bring back online as a result of suspended operations from increased seismic activity in our Water Solutions segment.

•A loss of $2.2 million from the retirement of certain crude oil terminal assets damaged as part of Hurricane Ida in our Crude Oil Logistics segment.

•A gain of $5.5 million on the sale of our trucking assets in our Crude Oil Logistics segment.