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Segment Information
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Information
(14) Segment Information

We manage and report our activities primarily according to the geography and nature of activity. We have five reportable segments:

•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;

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

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

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

•Corporate Segment. The Corporate segment includes our unconsolidated affiliate investments in the Cedar Cove JV in Oklahoma, GCF in South Texas, and the Matterhorn JV in West Texas, as well as our corporate assets and expenses.
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. See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” for additional information. Summarized financial information for our reportable segments is shown in the following tables (in millions):
PermianLouisianaOklahomaNorth TexasCorporateTotals
Three Months Ended June 30, 2023
Natural gas sales$76.4 $92.5 $32.9 $16.7 $— $218.5 
NGL sales— 648.6 0.4 (1.9)— 647.1 
Crude oil and condensate sales294.4 52.6 26.7 — — 373.7 
Product sales370.8 793.7 60.0 14.8 — 1,239.3 
NGL sales—related parties204.1 5.3 102.3 66.2 (377.9)— 
Crude oil and condensate sales—related parties— — — 2.8 (2.8)— 
Product sales—related parties204.1 5.3 102.3 69.0 (380.7)— 
Gathering and transportation 29.3 18.7 60.5 51.9 — 160.4 
Processing14.5 0.1 36.4 30.5 — 81.5 
NGL services— 17.4 — 0.1 — 17.5 
Crude services7.0 5.6 4.9 0.2 — 17.7 
Other services1.6 0.3 0.2 0.3 — 2.4 
Midstream services52.4 42.1 102.0 83.0 — 279.5 
NGL services—related parties— — — 0.8 (0.8)— 
Midstream services—related parties— — — 0.8 (0.8)— 
Revenue from contracts with customers627.3 841.1 264.3 167.6 (381.5)1,518.8 
Realized gain (loss) on derivatives5.4 (7.8)1.9 6.5 — 6.0 
Change in fair value of derivatives(7.9)18.2 2.0 (7.0)— 5.3 
Total revenues624.8 851.5 268.2 167.1 (381.5)1,530.1 
Cost of sales, exclusive of operating expenses and depreciation and amortization(479.9)(715.0)(130.5)(75.1)381.5 (1,019.0)
Adjusted gross margin144.9 136.5 137.7 92.0 — 511.1 
Operating expenses(53.1)(32.0)(27.0)(24.7)— (136.8)
Segment profit91.8 104.5 110.7 67.3 — 374.3 
Depreciation and amortization(41.5)(36.9)(56.6)(29.0)(1.3)(165.3)
Gross margin50.3 67.6 54.1 38.3 (1.3)209.0 
Gain on disposition of assets0.1 0.1 0.1 0.5 — 0.8 
General and administrative— — — — (27.9)(27.9)
Interest expense, net of interest income— — — — (68.8)(68.8)
Loss from unconsolidated affiliate investments— — — — (4.6)(4.6)
Other income— — — — 0.4 0.4 
Income (loss) before non-controlling interest and income taxes$50.4 $67.7 $54.2 $38.8 $(102.2)$108.9 
Capital expenditures$51.6 $17.7 $22.1 $11.8 $1.5 $104.7 
PermianLouisianaOklahomaNorth TexasCorporateTotals
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 sales331.6 110.0 40.6 — — 482.2 
Product sales654.6 1,546.6 131.3 38.0 — 2,370.5 
NGL sales—related parties427.5 43.1 242.6 165.8 (879.0)— 
Crude oil and condensate sales—related parties— — — 4.0 (4.0)— 
Product sales—related parties427.5 43.1 242.6 169.8 (883.0)— 
Gathering and transportation 19.9 15.7 44.7 40.6 — 120.9 
Processing9.9 0.3 28.6 27.9 — 66.7 
NGL services— 18.4 — 0.1 — 18.5 
Crude services6.0 9.2 3.2 0.2 — 18.6 
Other services0.2 0.4 0.1 0.2 — 0.9 
Midstream services36.0 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 customers1,118.1 1,633.7 450.6 276.8 (883.1)2,596.1 
Realized loss on derivatives(10.2)(2.5)(15.8)(2.3)— (30.8)
Change in fair value of derivatives12.5 11.8 8.2 2.8 — 35.3 
Total revenues1,120.4 1,643.0 443.0 277.3 (883.1)2,600.6 
Cost of sales, exclusive of operating expenses and depreciation and amortization(958.0)(1,519.2)(321.3)(189.7)883.1 (2,105.1)
Adjusted gross margin162.4 123.8 121.7 87.6 — 495.5 
Operating expenses(50.3)(34.8)(23.1)(20.7)— (128.9)
Segment profit112.1 89.0 98.6 66.9 — 366.6 
Depreciation and amortization(37.1)(39.4)(52.3)(28.7)(1.5)(159.0)
Gross margin75.0 49.6 46.3 38.2 (1.5)207.6 
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 
PermianLouisianaOklahomaNorth TexasCorporateTotals
Six Months Ended June 30, 2023
Natural gas sales$205.7 $224.3 $99.7 $31.2 $— $560.9 
NGL sales0.4 1,506.5 9.0 (2.9)— 1,513.0 
Crude oil and condensate sales481.1 109.2 51.4 — — 641.7 
Product sales687.2 1,840.0 160.1 28.3 — 2,715.6 
NGL sales—related parties441.6 9.7 220.3 145.7 (817.3)— 
Crude oil and condensate sales—related parties— — — 5.5 (5.5)— 
Product sales—related parties441.6 9.7 220.3 151.2 (822.8)— 
Gathering and transportation 52.6 38.7 115.3 104.0 — 310.6 
Processing28.5 0.4 71.7 62.6 — 163.2 
NGL services— 45.2 — 0.1 — 45.3 
Crude services13.0 12.1 9.4 0.4 — 34.9 
Other services3.3 0.7 0.3 0.5 — 4.8 
Midstream services97.4 97.1 196.7 167.6 — 558.8 
NGL services—related parties— — — 1.4 (1.4)— 
Midstream services—related parties— — — 1.4 (1.4)— 
Revenue from contracts with customers1,226.2 1,946.8 577.1 348.5 (824.2)3,274.4 
Realized gain (loss) on derivatives1.4 (0.6)3.9 14.6 — 19.3 
Change in fair value of derivatives(1.6)9.2 0.6 (4.3)— 3.9 
Total revenues1,226.0 1,955.4 581.6 358.8 (824.2)3,297.6 
Cost of sales, exclusive of operating expenses and depreciation and amortization(937.0)(1,688.9)(324.5)(164.7)824.2 (2,290.9)
Adjusted gross margin289.0 266.5 257.1 194.1 — 1,006.7 
Operating expenses(101.2)(65.6)(51.7)(50.7)— (269.2)
Segment profit187.8 200.9 205.4 143.4 — 737.5 
Depreciation and amortization(81.5)(75.2)(108.5)(57.8)(2.7)(325.7)
Gross margin106.3 125.7 96.9 85.6 (2.7)411.8 
Gain on disposition of assets0.1 0.2 0.3 0.6 — 1.2 
General and administrative— — — — (57.4)(57.4)
Interest expense, net of interest income— — — — (137.3)(137.3)
Loss from unconsolidated affiliate investments— — — — (4.7)(4.7)
Other income— — — — 0.4 0.4 
Income (loss) before non-controlling interest and income taxes$106.4 $125.9 $97.2 $86.2 $(201.7)$214.0 
Capital expenditures$108.3 $30.0 $47.8 $29.9 $2.8 $218.8 
PermianLouisianaOklahomaNorth TexasCorporateTotals
Six Months Ended June 30, 2022
Natural gas sales$518.6 $484.4 $163.4 $63.3 $— $1,229.7 
NGL sales— 2,315.2 6.7 — — 2,321.9 
Crude oil and condensate sales603.6 183.9 75.3 — — 862.8 
Product sales1,122.2 2,983.5 245.4 63.3 — 4,414.4 
NGL sales—related parties827.3 80.0 450.7 312.7 (1,670.7)— 
Crude oil and condensate sales—related parties— — 0.3 7.0 (7.3)— 
Product sales—related parties827.3 80.0 451.0 319.7 (1,678.0)— 
Gathering and transportation 33.5 32.0 87.4 79.4 — 232.3 
Processing17.7 0.8 54.0 55.5 — 128.0 
NGL services— 42.3 — 0.1 — 42.4 
Crude services10.3 18.6 6.9 0.4 — 36.2 
Other services0.4 0.8 0.2 0.3 — 1.7 
Midstream services61.9 94.5 148.5 135.7 — 440.6 
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 customers2,011.4 3,158.1 845.0 518.7 (1,678.2)4,855.0 
Realized loss on derivatives(12.6)(9.1)(19.5)(5.7)— (46.9)
Change in fair value of derivatives6.6 6.2 1.1 6.3 — 20.2 
Total revenues2,005.4 3,155.2 826.6 519.3 (1,678.2)4,828.3 
Cost of sales, exclusive of operating expenses and depreciation and amortization(1,724.7)(2,907.9)(598.1)(347.1)1,678.2 (3,899.6)
Adjusted gross margin280.7 247.3 228.5 172.2 — 928.7 
Operating expenses(95.6)(67.8)(44.1)(42.3)— (249.8)
Segment profit185.1 179.5 184.4 129.9 — 678.9 
Depreciation and amortization(73.8)(74.9)(103.2)(57.1)(2.9)(311.9)
Gross margin111.3 104.6 81.2 72.8 (2.9)367.0 
Gain (loss) on disposition of assets— 0.2 0.4 (5.3)— (4.7)
General and administrative— — — — (57.4)(57.4)
Interest expense, net of interest income— — — — (110.6)(110.6)
Loss on extinguishment of debt— — — — (0.5)(0.5)
Loss from unconsolidated affiliate investments— — — — (2.3)(2.3)
Other income— — — — 0.3 0.3 
Income (loss) before non-controlling interest and income taxes$111.3 $104.8 $81.6 $67.5 $(173.4)$191.8 
Capital expenditures$68.9 $12.0 $26.9 $11.2 $3.5 $122.5 
The table below represents information about segment assets as of June 30, 2023 and December 31, 2022 (in millions):
Segment Identifiable Assets:June 30, 2023December 31, 2022
Permian$2,708.3 $2,661.4 
Louisiana2,077.6 2,310.7 
Oklahoma2,350.4 2,420.4 
North Texas1,038.9 1,094.6 
Corporate (1)224.7 163.9 
Total identifiable assets$8,399.9 $8,651.0 
____________________________(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.