Segment Information (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2021
Natural gas sales	$	159.3	$	183.2	$	58.2	$	32.2	$	—	$	432.9
NGL sales	0.4		898.6		0.3		(0.1)		—		899.2
Crude oil and condensate sales	194.4		62.5		21.2		—		—		278.1

Product sales	354.1		1,144.3		79.7		32.1		—		1,610.2

NGL sales—related parties	301.4		39.5		180.2		131.2		(652.3)		—
Crude oil and condensate sales—related parties	—		—		—		1.5		(1.5)		—
Product sales—related parties	301.4		39.5		180.2		132.7		(653.8)		—
Gathering and transportation	12.8		16.3		44.6		39.0		—		112.7
Processing	7.5		0.9		26.5		27.0		—		61.9
NGL services	—		16.9		—		—		—		16.9
Crude services	5.5		10.3		2.8		0.1		—		18.7
Other services	0.2		0.4		0.1		0.1		—		0.8
Midstream services	26.0		44.8		74.0		66.2		—		211.0



Crude services—related parties	—		—		0.1		—		(0.1)		—
Other services—related parties	—		0.1		—		—		(0.1)		—
Midstream services—related parties	—		0.1		0.1		—		(0.2)		—
Revenue from contracts with customers	681.5		1,228.7		334.0		231.0		(654.0)		1,821.2
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)	(576.6)		(1,110.8)		(218.0)		(149.4)		654.0		(1,400.8)
Realized loss on derivatives	(8.7)		(14.9)		(6.8)		(2.0)		—		(32.4)
Change in fair value of derivatives	10.2		(8.8)		(2.3)		(0.3)		—		(1.2)
Adjusted gross margin	106.4		94.2		106.9		79.3		—		386.8
Operating expenses	(37.3)		(30.5)		(19.8)		(19.3)		—		(106.9)
Segment profit	69.1		63.7		87.1		60.0		—		279.9
Depreciation and amortization	(35.4)		(34.6)		(52.3)		(28.5)		(2.2)		(153.0)

Gain on disposition of assets	0.1		0.2		—		0.1		—		0.4
General and administrative	—		—		—		—		(28.2)		(28.2)
Interest expense, net of interest income	—		—		—		—		(60.1)		(60.1)

Loss from unconsolidated affiliates	—		—		—		—		(2.3)		(2.3)

Income (loss) before non-controlling interest and income taxes	$	33.8	$	29.3	$	34.8	$	31.6	$	(92.8)	$	36.7
Capital expenditures	$	25.8	$	0.4	$	10.3	$	3.3	$	0.6	$	40.4

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(1)Includes related party cost of sales of $4.9 million for the three months ended September 30, 2021 and excludes all operating expenses as well as depreciation and amortization related to our operating segments of $150.8 million for the three months ended September 30, 2021.


	Permian		Louisiana		Oklahoma		North Texas		Corporate		Totals
Three Months Ended September 30, 2020
Natural gas sales	$	46.5	$	76.4	$	40.1	$	16.0	$	—	$	179.0
NGL sales	0.1		402.3		1.2		—		—		403.6
Crude oil and condensate sales	82.6		21.7		9.2		—		—		113.5

Product sales	129.2		500.4		50.5		16.0		—		696.1

NGL sales—related parties	95.6		3.3		85.4		21.4		(205.7)		—
Crude oil and condensate sales—related parties	—		—		—		0.7		(0.7)		—
Product sales—related parties	95.6		3.3		85.4		22.1		(206.4)		—
Gathering and transportation	17.9		10.7		56.7		43.4		—		128.7
Processing	8.0		0.3		32.4		33.3		—		74.0
NGL services	—		14.2		—		—		—		14.2
Crude services	3.8		12.2		3.7		—		—		19.7
Other services	0.2		0.4		0.1		0.2		—		0.9
Midstream services	29.9		37.8		92.9		76.9		—		237.5



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

Midstream services—related parties	—		—		0.1		—		(0.1)		—
Revenue from contracts with customers	254.7		541.5		228.9		115.0		(206.5)		933.6
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)	(185.4)		(441.4)		(101.0)		(28.2)		206.5		(549.5)
Realized loss on derivatives	(0.4)		(0.6)		(1.7)		(0.2)		—		(2.9)
Change in fair value of derivatives	0.9		(2.7)		(0.3)		(0.1)		—		(2.2)
Adjusted gross margin	69.8		96.8		125.9		86.5		—		379.0
Operating expenses	(22.9)		(31.1)		(20.1)		(20.2)		—		(94.3)
Segment profit	46.9		65.7		105.8		66.3		—		284.7
Depreciation and amortization	(31.9)		(36.9)		(53.0)		(36.8)		(1.7)		(160.3)

Gain on disposition of assets	—		—		—		1.8		—		1.8
General and administrative	—		—		—		—		(25.7)		(25.7)
Interest expense, net of interest income	—		—		—		—		(55.5)		(55.5)

Loss from unconsolidated affiliates	—		—		—		—		(0.2)		(0.2)
Other income	—		—		—		—		0.4		0.4
Income (loss) before non-controlling interest and income taxes	$	15.0	$	28.8	$	52.8	$	31.3	$	(82.7)	$	45.2

Capital expenditures	$	28.5	$	8.5	$	2.6	$	3.0	$	0.6	$	43.2

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(1)Includes related party cost of sales of $2.0 million for the three months ended September 30, 2020 and excludes all operating expenses as well as depreciation and amortization related to our operating segments of $158.6 million for the three months ended September 30, 2020.


	Permian		Louisiana		Oklahoma		North Texas		Corporate		Totals
Nine Months Ended September 30, 2021
Natural gas sales	$	381.7	$	426.4	$	139.7	$	109.4	$	—	$	1,057.2
NGL sales	0.9		2,231.2		1.3		1.0		—		2,234.4
Crude oil and condensate sales	472.1		154.5		50.5		—		—		677.1

Product sales	854.7		2,812.1		191.5		110.4		—		3,968.7

NGL sales—related parties	661.8		93.3		430.4		306.4		(1,491.9)		—
Crude oil and condensate sales—related parties	—		—		0.1		5.1		(5.2)		—
Product sales—related parties	661.8		93.3		430.5		311.5		(1,497.1)		—
Gathering and transportation	34.3		48.5		141.8		117.6		—		342.2
Processing	21.7		1.9		70.5		81.1		—		175.2
NGL services	—		56.0		—		0.2		—		56.2
Crude services	13.0		29.8		9.5		0.5		—		52.8
Other services	0.6		1.3		0.5		0.4		—		2.8
Midstream services	69.6		137.5		222.3		199.8		—		629.2



Crude services—related parties	—		—		0.2		—		(0.2)		—
Other services—related parties	—		2.4		—		—		(2.4)		—
Midstream services—related parties	—		2.4		0.2		—		(2.6)		—
Revenue from contracts with customers	1,586.1		3,045.3		844.5		621.7		(1,499.7)		4,597.9
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)	(1,304.5)		(2,690.1)		(533.9)		(361.8)		1,499.7		(3,390.6)
Realized loss on derivatives	(69.8)		(32.0)		(15.7)		(4.8)		—		(122.3)
Change in fair value of derivatives	(3.0)		(18.6)		(9.4)		(1.9)		—		(32.9)
Adjusted gross margin	208.8		304.6		285.5		253.2		—		1,052.1
Operating expenses	(52.9)		(91.4)		(57.3)		(58.4)		—		(260.0)
Segment profit	155.9		213.2		228.2		194.8		—		792.1
Depreciation and amortization	(103.5)		(106.8)		(153.6)		(86.0)		(6.0)		(455.9)

Gain on disposition of assets	0.2		0.3		—		0.2		—		0.7
General and administrative	—		—		—		—		(80.3)		(80.3)
Interest expense, net of interest income	—		—		—		—		(180.1)		(180.1)

Loss from unconsolidated affiliates	—		—		—		—		(9.9)		(9.9)
Other income	—		—		—		—		0.1		0.1
Income (loss) before non-controlling interest and income taxes	$	52.6	$	106.7	$	74.6	$	109.0	$	(276.2)	$	66.7
Capital expenditures	$	78.6	$	5.4	$	17.1	$	7.6	$	1.1	$	109.8

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(1)Includes related party cost of sales of $11.7 million for the nine months ended September 30, 2021 and excludes all operating expenses as well as depreciation and amortization related to our operating segments of $449.9 million for the nine months ended September 30, 2021.


	Permian		Louisiana		Oklahoma		North Texas		Corporate		Totals
Nine Months Ended September 30, 2020
Natural gas sales	$	94.0	$	226.6	$	110.0	$	50.7	$	—	$	481.3
NGL sales	0.2		1,056.9		2.9		0.3		—		1060.3
Crude oil and condensate sales	454.6		95.0		30.4		—		—		580.0

Product sales	548.8		1,378.5		143.3		51.0		—		2,121.6

NGL sales—related parties	201.0		13.3		209.0		52.5		(475.8)		—
Crude oil and condensate sales—related parties	0.1		—		(0.1)		2.6		(2.6)		—
Product sales—related parties	201.1		13.3		208.9		55.1		(478.4)		—
Gathering and transportation	47.3		33.9		165.5		133.5		—		380.2
Processing	19.8		1.6		97.8		101.7		—		220.9
NGL services	—		52.4		—		0.1		—		52.5
Crude services	13.0		33.8		12.6		—		—		59.4
Other services	1.0		1.2		0.3		0.7		—		3.2
Midstream services	81.1		122.9		276.2		236.0		—		716.2



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

Midstream services—related parties	—		—		0.3		—		(0.3)		—
Revenue from contracts with customers	831.0		1,514.7		628.7		342.1		(478.7)		2,837.8
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)	(637.7)		(1,213.6)		(255.8)		(74.1)		478.7		(1,702.5)
Realized gain (loss) on derivatives	(0.6)		1.9		(1.7)		0.1		—		(0.3)
Change in fair value of derivatives	2.3		(7.8)		(2.4)		(0.1)		—		(8.0)
Adjusted gross margin	195.0		295.2		368.8		268.0		—		1,127.0
Operating expenses	(71.1)		(90.4)		(62.4)		(59.2)		—		(283.1)
Segment profit	123.9		204.8		306.4		208.8		—		843.9
Depreciation and amortization	(92.1)		(109.3)		(163.7)		(110.4)		(5.8)		(481.3)
Impairments	(184.6)		(169.9)		—		—		—		(354.5)
Gain (loss) on disposition of assets	(4.9)		0.1		0.1		1.9		—		(2.8)
General and administrative	—		—		—		—		(79.6)		(79.6)
Interest expense, net of interest income	—		—		—		—		(166.3)		(166.3)
Gain on extinguishment of debt	—		—		—		—		32.0		32.0
Income from unconsolidated affiliates	—		—		—		—		0.8		0.8
Other income	—		—		—		—		0.4		0.4
Income (loss) before non-controlling interest and income taxes	$	(157.7)	$	(74.3)	$	142.8	$	100.3	$	(218.5)	$	(207.4)

Capital expenditures	$	161.4	$	39.3	$	14.1	$	10.7	$	1.7	$	227.2

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(1)Includes related party cost of sales of $6.2 million for the nine months ended September 30, 2020 and excludes all operating expenses as well as depreciation and amortization related to our operating segments of $475.5 million for the nine months ended September 30, 2020.

Schedule of Segment Assets

The table below represents information about segment assets as of September 30, 2021 and December 31, 2020 (in millions):


Segment Identifiable Assets:	September 30, 2021		December 31, 2020
Permian	$	2,391.2	$	2,236.3
Louisiana	2,489.4		2,312.4
Oklahoma	2,661.5		2,847.6
North Texas	938.0		1,008.6
Corporate (1)	146.4		146.0
Total identifiable assets	$	8,626.5	$	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.