Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

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 June 30, 2022
Natural gas sales	$	323.0	$	272.9	$	87.1	$	37.9	$	—	$	720.9
NGL sales	—		1,163.7		3.6		0.1		—		1,167.4
Crude oil and condensate sales	331.6		110.0		40.6		—		—		482.2

Product sales	654.6		1,546.6		131.3		38.0		—		2,370.5

NGL sales—related parties	427.5		43.1		242.6		165.8		(879.0)		—
Crude oil and condensate sales—related parties	—		—		—		4.0		(4.0)		—
Product sales—related parties	427.5		43.1		242.6		169.8		(883.0)		—
Gathering and transportation	19.9		15.7		44.7		40.6		—		120.9
Processing	9.9		0.3		28.6		27.9		—		66.7
NGL services	—		18.4		—		0.1		—		18.5
Crude services	6.0		9.2		3.2		0.2		—		18.6
Other services	0.2		0.4		0.1		0.2		—		0.9
Midstream services	36.0		44.0		76.6		69.0		—		225.6



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

Midstream services—related parties	—		—		0.1		—		(0.1)		—
Revenue from contracts with customers	1,118.1		1,633.7		450.6		276.8		(883.1)		2,596.1
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)	(958.0)		(1,519.2)		(321.3)		(189.7)		883.1		(2,105.1)
Realized loss on derivatives	(10.2)		(2.5)		(15.8)		(2.3)		—		(30.8)
Change in fair value of derivatives	12.5		11.8		8.2		2.8		—		35.3
Adjusted gross margin	162.4		123.8		121.7		87.6		—		495.5
Operating expenses	(50.3)		(34.8)		(23.1)		(20.7)		—		(128.9)
Segment profit	112.1		89.0		98.6		66.9		—		366.6
Depreciation and amortization	(37.1)		(39.4)		(52.3)		(28.7)		(1.5)		(159.0)

Gain on disposition of assets	—		—		0.2		0.2		—		0.4
General and administrative	—		—		—		—		(28.4)		(28.4)
Interest expense, net of interest income	—		—		—		—		(55.5)		(55.5)
Loss on extinguishment of debt	—		—		—		—		(0.5)		(0.5)
Loss from unconsolidated affiliate investments	—		—		—		—		(1.2)		(1.2)
Other income	—		—		—		—		0.2		0.2
Income (loss) before non-controlling interest and income taxes	$	75.0	$	49.6	$	46.5	$	38.4	$	(86.9)	$	122.6
Capital expenditures	$	34.7	$	6.3	$	11.5	$	8.1	$	1.9	$	62.5

____________________________

(1)Includes related party cost of sales of $9.1 million for the three months ended June 30, 2022.


	Permian		Louisiana		Oklahoma		North Texas		Corporate		Totals
Three Months Ended June 30, 2021
Natural gas sales	$	97.4	$	122.0	$	45.6	$	26.2	$	—	$	291.2
NGL sales	0.5		706.6		0.4		(0.1)		—		707.4
Crude oil and condensate sales	170.4		50.9		15.7		—		—		237.0

Product sales	268.3		879.5		61.7		26.1		—		1,235.6

NGL sales—related parties	195.5		30.2		137.1		94.3		(457.1)		—
Crude oil and condensate sales—related parties	—		—		0.1		2.1		(2.2)		—
Product sales—related parties	195.5		30.2		137.2		96.4		(459.3)		—
Gathering and transportation	11.8		16.4		45.9		38.2		—		112.3
Processing	6.0		0.5		28.1		27.0		—		61.6
NGL services	—		17.1		—		0.1		—		17.2
Crude services	4.0		9.6		3.4		0.2		—		17.2
Other services	0.2		0.4		0.2		0.2		—		1.0
Midstream services	22.0		44.0		77.6		65.7		—		209.3






Revenue from contracts with customers	485.8		953.7		276.5		188.2		(459.3)		1,444.9
Cost of sales, exclusive of operating expenses and depreciation and amortization (1)	(402.3)		(838.9)		(164.9)		(108.3)		459.3		(1,055.1)
Realized loss on derivatives	(4.2)		(6.4)		(2.9)		(0.9)		—		(14.4)
Change in fair value of derivatives	(7.9)		(9.4)		(5.3)		(1.2)		—		(23.8)
Adjusted gross margin	71.4		99.0		103.4		77.8		—		351.6
Operating expenses	(27.4)		(31.7)		(17.8)		(19.9)		—		(96.8)
Segment profit	44.0		67.3		85.6		57.9		—		254.8
Depreciation and amortization	(34.6)		(36.1)		(50.6)		(28.8)		(1.8)		(151.9)

Gain on disposition of assets	—		0.2		—		0.1		—		0.3
General and administrative	—		—		—		—		(26.1)		(26.1)
Interest expense, net of interest income	—		—		—		—		(60.0)		(60.0)

Loss from unconsolidated affiliate investments	—		—		—		—		(1.3)		(1.3)
Other income	—		—		—		—		0.2		0.2
Income (loss) before non-controlling interest and income taxes	$	9.4	$	31.4	$	35.0	$	29.2	$	(89.0)	$	16.0

Capital expenditures	$	39.5	$	2.2	$	4.9	$	1.9	$	0.1	$	48.6

____________________________

(1)Includes related party cost of sales of $3.6 million for the three months ended June 30, 2021.

Schedule of Segment Assets

The table below represents information about segment assets as of June 30, 2022 and December 31, 2021 (in millions):


Segment Identifiable Assets:	June 30, 2022		December 31, 2021
Permian	$	2,525.8	$	2,358.6
Louisiana	2,574.8		2,428.6
Oklahoma	2,581.1		2,619.5
North Texas	869.3		896.8
Corporate (1)	127.8		179.7
Total identifiable assets	$	8,678.8	$	8,483.2

____________________________(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.