Segment Information (Tables)

3 Months Ended

Mar. 31, 2021

We evaluate the performance of our operating segments based on segment profit and adjusted gross margin. Adjusted gross margin is a non-GAAP financial measure. Summarized financial information for our reportable segments is shown in the following tables (in millions):


	Permian		Louisiana		Oklahoma		North Texas		Corporate		Totals
Three Months Ended March 31, 2021
Natural gas sales	$	125.0	$	121.2	$	35.9	$	51.0	$	—	$	333.1
NGL sales	—		626.0		0.6		1.2		—		627.8
Crude oil and condensate sales	107.3		41.1		13.6		—		—		162.0

Product sales	232.3		788.3		50.1		52.2		—		1,122.9

NGL sales—related parties	164.9		23.6		113.1		80.9		(382.5)		—
Crude oil and condensate sales—related parties	—		—		—		1.5		(1.5)		—
Product sales—related parties	164.9		23.6		113.1		82.4		(384.0)		—
Gathering and transportation	9.7		15.8		51.3		40.4		—		117.2
Processing	8.2		0.5		15.9		27.1		—		51.7
NGL services	—		22.0		—		0.1		—		22.1
Crude services	3.5		9.9		3.3		0.2		—		16.9
Other services	0.2		0.5		0.2		0.1		—		1.0
Midstream services	21.6		48.7		70.7		67.9		—		208.9



Crude services—related parties	—		—		0.1		—		(0.1)		—
Other services—related parties	—		2.3		—		—		(2.3)		—
Midstream services—related parties	—		2.3		0.1		—		(2.4)		—
Revenue from contracts with customers	418.8		862.9		234.0		202.5		(386.4)		1,331.8
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)	(325.6)		(740.4)		(151.0)		(104.1)		386.4		(934.7)
Realized loss on derivatives	(56.9)		(10.7)		(6.0)		(1.9)		—		(75.5)
Change in fair value of derivatives	(5.3)		(0.4)		(1.8)		(0.4)		—		(7.9)
Adjusted gross margin	31.0		111.4		75.2		96.1		—		313.7
Operating expenses	11.8		(29.2)		(19.7)		(19.2)		—		(56.3)
Segment profit	42.8		82.2		55.5		76.9		—		257.4
Depreciation and amortization	(33.5)		(36.1)		(50.7)		(28.7)		(2.0)		(151.0)

Gain (loss) on disposition of assets	0.1		(0.1)		—		—		—		—
General and administrative	—		—		—		—		(26.0)		(26.0)
Interest expense, net of interest income	—		—		—		—		(60.0)		(60.0)

Loss from unconsolidated affiliates	—		—		—		—		(6.3)		(6.3)
Other expense	—		—		—		—		(0.1)		(0.1)
Income (loss) before non-controlling interest and income taxes	$	9.4	$	46.0	$	4.8	$	48.2	$	(94.4)	$	14.0
Capital expenditures	$	13.3	$	2.8	$	1.9	$	2.4	$	0.4	$	20.8

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(1)Includes related party cost of sales of $3.2 million for the three months ended March 31, 2021 and excludes all operating expenses as well as depreciation and amortization related to our operating segments of $149.0 million for the three months ended March 31, 2021.


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

Product sales	300.3		513.7		58.5		20.4		—		892.9

NGL sales—related parties	45.9		6.8		67.6		17.2		(137.6)		(0.1)
Crude oil and condensate sales—related parties	0.1		—		(0.2)		1.5		(1.3)		0.1
Product sales—related parties	46.0		6.8		67.4		18.7		(138.9)		—
Gathering and transportation	16.3		11.7		56.3		45.9		—		130.2
Processing	4.3		0.7		33.3		35.4		—		73.7
NGL services	—		19.6		—		—		—		19.6
Crude services	4.2		10.6		4.3		—		—		19.1
Other services	0.6		0.4		0.1		0.3		—		1.4
Midstream services	25.4		43.0		94.0		81.6		—		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		563.5		220.0		120.7		(139.0)		1,136.9
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)	(313.9)		(459.7)		(93.7)		(27.0)		139.0		(755.3)
Realized gain on derivatives	0.9		4.3		0.8		0.2		—		6.2
Change in fair value of derivatives	9.4		(1.0)		3.8		0.8		—		13.0
Adjusted gross margin	68.1		107.1		130.9		94.7		—		400.8
Operating expenses	(25.5)		(31.8)		(22.9)		(20.5)		—		(100.7)
Segment profit	42.6		75.3		108.0		74.2		—		300.1
Depreciation and amortization	(29.2)		(37.8)		(56.6)		(37.2)		(2.0)		(162.8)
Impairments	(184.6)		(168.4)		—		—		—		(353.0)
Gain on disposition of assets	0.4		—		0.2		—		—		0.6
General and administrative	—		—		—		—		(30.4)		(30.4)
Interest expense, net of interest income	—		—		—		—		(55.6)		(55.6)
Gain on extinguishment of debt	—		—		—		—		5.3		5.3
Income from unconsolidated affiliates	—		—		—		—		1.7		1.7

Income (loss) before non-controlling interest and income taxes	$	(170.8)	$	(130.9)	$	51.6	$	37.0	$	(81.0)	$	(294.1)

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

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(1)Includes related party cost of sales of $2.9 million for the three months ended March 31, 2020 and excludes all operating expenses as well as depreciation and amortization related to our operating segments of $160.8 million for the three months ended March 31, 2020.

Schedule of Segment Assets

The table below represents information about segment assets as of March 31, 2021 and December 31, 2020 (in millions):


Segment Identifiable Assets:	March 31, 2021		December 31, 2020
Permian	$	2,292.8	$	2,236.3
Louisiana	2,316.7		2,312.4
Oklahoma	2,743.8		2,847.6
North Texas	986.0		1,008.6
Corporate (1)	177.0		146.0
Total identifiable assets	$	8,516.3	$	8,550.9

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(1)Accounts receivable and accrued revenue sold to the SPV for collateral under the AR Facility are included within the Permian, Louisiana, Oklahoma, and North Texas segments.