Segment Information

3 Months Ended

Mar. 31, 2020

(14) Segment Information

Identification of the majority of our operating segments is based principally upon geographic regions served:

•Permian Segment. The Permian segment includes our natural gas gathering, processing, and transmission activities and our crude oil operations in the Midland and Delaware Basins in West Texas and Eastern New Mexico and our crude operations in South Texas;

•North Texas Segment. The North Texas segment includes our natural gas gathering, processing, and transmission activities in North Texas;

•Oklahoma Segment. The Oklahoma segment includes our natural gas gathering, processing, and transmission activities, and our crude oil operations in the Cana-Woodford, Arkoma-Woodford, northern Oklahoma Woodford, STACK, and CNOW shale areas;

•Louisiana Segment. The Louisiana segment includes our natural gas pipelines, natural gas processing plants, storage facilities, fractionation facilities, and NGL assets located in Louisiana and our crude oil operations in ORV; and

•Corporate Segment. The Corporate segment includes our unconsolidated affiliate investments in the Cedar Cove JV in Oklahoma, our ownership interest in GCF in South Texas, our derivative activity, and our general corporate assets and expenses.

We evaluate the performance of our operating segments based on segment profits. Summarized financial information for our reportable segments is shown in the following tables (in millions):


	Permian		North Texas		Oklahoma		Louisiana		Corporate		Totals
Three Months Ended March 31, 2020
Natural gas sales	$	15.1	$	20.1	$	41.1	$	81.6	$	—	$	157.9
NGL sales	0.2		0.3		1.2		373.7		—		375.4
Crude oil and condensate sales	285.0		—		16.2		58.4		—		359.6

Product sales	300.3		20.4		58.5		513.7		—		892.9

NGL sales—related parties	45.9		17.2		67.6		6.8		(137.6)		(0.1)
Crude oil and condensate sales—related parties	0.1		1.5		(0.2)		—		(1.3)		0.1
Product sales—related parties	46.0		18.7		67.4		6.8		(138.9)		—
Gathering and transportation	16.3		45.9		56.3		11.7		—		130.2
Processing	4.3		35.4		33.3		0.7		—		73.7
NGL services	—		—		—		19.6		—		19.6
Crude services	4.2		—		4.3		10.6		—		19.1
Other services	0.6		0.3		0.1		0.4		—		1.4
Midstream services	25.4		81.6		94.0		43.0		—		244.0



Crude services—related parties	—		—		0.1		—		(0.1)		—

Midstream services—related parties	—		—		0.1		—		(0.1)		—
Revenue from contracts with customers	371.7		120.7		220.0		563.5		(139.0)		1,136.9
Cost of sales	(313.9)		(27.0)		(93.7)		(459.7)		139.0		(755.3)
Operating expenses	(25.5)		(20.5)		(22.9)		(31.8)		—		(100.7)
Gain on derivative activity	—		—		—		—		19.2		19.2
Segment profit	$	32.3	$	73.2	$	103.4	$	72.0	$	19.2	$	300.1
Depreciation and amortization	$	(29.2)	$	(37.2)	$	(56.6)	$	(37.8)	$	(2.0)	$	(162.8)
Impairments	$	(184.6)	$	—	$	—	$	(168.4)	$	—	$	(353.0)

Capital expenditures	$	86.0	$	4.7	$	8.5	$	15.2	$	0.4	$	114.8


	Permian		North Texas		Oklahoma		Louisiana		Corporate		Totals
Three Months Ended March 31, 2019
Natural gas sales	$	36.1	$	50.6	$	61.6	$	122.2	$	—	$	270.5
NGL sales	(0.2)		9.3		8.9		573.1		—		591.1
Crude oil and condensate sales	580.8		—		29.6		58.8		—		669.2
Other	—		—		0.1		—		—		0.1
Product sales	616.7		59.9		100.2		754.1		—		1,530.9

NGL sales—related parties	97.2		28.5		126.1		3.2		(255.0)		—
Crude oil and condensate sales—related parties	4.0		1.0		—		—		(5.0)		—
Product sales—related parties	101.2		29.5		126.1		3.2		(260.0)		—
Gathering and transportation	10.3		63.6		55.3		17.2		—		146.4
Processing	7.7		21.1		34.1		0.9		—		63.8
NGL services	—		—		—		11.7		—		11.7
Crude services	5.2		—		4.0		13.8		—		23.0
Other services	1.5		0.2		(0.3)		0.2		—		1.6
Midstream services	24.7		84.9		93.1		43.8		—		246.5


NGL services—related parties	—		—		—		(3.0)		3.0		—
Crude services—related parties	—		—		0.3		—		(0.3)		—

Midstream services—related parties	—		—		0.3		(3.0)		2.7		—
Revenue from contracts with customers	742.6		174.3		319.7		798.1		(257.3)		1,777.4
Cost of sales	(676.2)		(73.7)		(184.2)		(686.6)		257.3		(1,363.4)
Operating expenses	(27.8)		(25.7)		(25.4)		(35.6)		—		(114.5)
Gain on derivative activity	—		—		—		—		1.8		1.8
Segment profit	$	38.6	$	74.9	$	110.1	$	75.9	$	1.8	$	301.3
Depreciation and amortization	$	(27.9)	$	(34.3)	$	(46.1)	$	(41.8)	$	(2.0)	$	(152.1)
Impairments	$	—	$	—	$	—	$	(186.5)	$	—	$	(186.5)
Goodwill	$	184.6	$	125.7	$	813.4	$	—	$	—	$	1,123.7
Capital expenditures	$	95.9	$	4.3	$	108.2	$	41.0	$	1.6	$	251.0

The following table reconciles the segment profits reported above to the operating loss as reported on the consolidated statements of operations (in millions):


	Three Months Ended March 31,
	2020		2019
Segment profit	$	300.1	$	301.3
General and administrative expenses	(30.4)		(51.4)
Gain on disposition of assets	0.6		—
Depreciation and amortization	(162.8)		(152.1)
Impairments	(353.0)		(186.5)


Operating loss	$	(245.5)	$	(88.7)

The table below represents information about segment assets as of March 31, 2020 and December 31, 2019 (in millions):


Segment Identifiable Assets:	March 31, 2020		December 31, 2019
Permian	$	2,362.3	$	2,465.7
North Texas	1,091.0		1,135.8
Oklahoma	2,974.6		3,035.0
Louisiana	2,233.9		2,562.0
Corporate	393.3		137.3
Total identifiable assets	$	9,055.1	$	9,335.8