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Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

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):


	Permian		Louisiana		Oklahoma		North Texas		Corporate		Totals
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 sales	294.4		52.6		26.7		—		—		373.7

Product sales	370.8		793.7		60.0		14.8		—		1,239.3

NGL sales—related parties	204.1		5.3		102.3		66.2		(377.9)		—
Crude oil and condensate sales—related parties	—		—		—		2.8		(2.8)		—
Product sales—related parties	204.1		5.3		102.3		69.0		(380.7)		—
Gathering and transportation	29.3		18.7		60.5		51.9		—		160.4
Processing	14.5		0.1		36.4		30.5		—		81.5
NGL services	—		17.4		—		0.1		—		17.5
Crude services	7.0		5.6		4.9		0.2		—		17.7
Other services	1.6		0.3		0.2		0.3		—		2.4
Midstream services	52.4		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 customers	627.3		841.1		264.3		167.6		(381.5)		1,518.8
Realized gain (loss) on derivatives	5.4		(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 revenues	624.8		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 margin	144.9		136.5		137.7		92.0		—		511.1
Operating expenses	(53.1)		(32.0)		(27.0)		(24.7)		—		(136.8)
Segment profit	91.8		104.5		110.7		67.3		—		374.3
Depreciation and amortization	(41.5)		(36.9)		(56.6)		(29.0)		(1.3)		(165.3)
Gross margin	50.3		67.6		54.1		38.3		(1.3)		209.0

Gain on disposition of assets	0.1		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


	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
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
Total revenues	1,120.4		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 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)
Gross margin	75.0		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


	Permian		Louisiana		Oklahoma		North Texas		Corporate		Totals
Six Months Ended June 30, 2023
Natural gas sales	$	205.7	$	224.3	$	99.7	$	31.2	$	—	$	560.9
NGL sales	0.4		1,506.5		9.0		(2.9)		—		1,513.0
Crude oil and condensate sales	481.1		109.2		51.4		—		—		641.7

Product sales	687.2		1,840.0		160.1		28.3		—		2,715.6

NGL sales—related parties	441.6		9.7		220.3		145.7		(817.3)		—
Crude oil and condensate sales—related parties	—		—		—		5.5		(5.5)		—
Product sales—related parties	441.6		9.7		220.3		151.2		(822.8)		—
Gathering and transportation	52.6		38.7		115.3		104.0		—		310.6
Processing	28.5		0.4		71.7		62.6		—		163.2
NGL services	—		45.2		—		0.1		—		45.3
Crude services	13.0		12.1		9.4		0.4		—		34.9
Other services	3.3		0.7		0.3		0.5		—		4.8
Midstream services	97.4		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 customers	1,226.2		1,946.8		577.1		348.5		(824.2)		3,274.4
Realized gain (loss) on derivatives	1.4		(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 revenues	1,226.0		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 margin	289.0		266.5		257.1		194.1		—		1,006.7
Operating expenses	(101.2)		(65.6)		(51.7)		(50.7)		—		(269.2)
Segment profit	187.8		200.9		205.4		143.4		—		737.5
Depreciation and amortization	(81.5)		(75.2)		(108.5)		(57.8)		(2.7)		(325.7)
Gross margin	106.3		125.7		96.9		85.6		(2.7)		411.8

Gain on disposition of assets	0.1		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


	Permian		Louisiana		Oklahoma		North Texas		Corporate		Totals
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 sales	603.6		183.9		75.3		—		—		862.8

Product sales	1,122.2		2,983.5		245.4		63.3		—		4,414.4

NGL sales—related parties	827.3		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 parties	827.3		80.0		451.0		319.7		(1,678.0)		—
Gathering and transportation	33.5		32.0		87.4		79.4		—		232.3
Processing	17.7		0.8		54.0		55.5		—		128.0
NGL services	—		42.3		—		0.1		—		42.4
Crude services	10.3		18.6		6.9		0.4		—		36.2
Other services	0.4		0.8		0.2		0.3		—		1.7
Midstream services	61.9		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 customers	2,011.4		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 derivatives	6.6		6.2		1.1		6.3		—		20.2
Total revenues	2,005.4		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 margin	280.7		247.3		228.5		172.2		—		928.7
Operating expenses	(95.6)		(67.8)		(44.1)		(42.3)		—		(249.8)
Segment profit	185.1		179.5		184.4		129.9		—		678.9
Depreciation and amortization	(73.8)		(74.9)		(103.2)		(57.1)		(2.9)		(311.9)
Gross margin	111.3		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

Schedule of Segment Assets

The table below represents information about segment assets as of June 30, 2023 and December 31, 2022 (in millions):


Segment Identifiable Assets:	June 30, 2023		December 31, 2022
Permian	$	2,708.3	$	2,661.4
Louisiana	2,077.6		2,310.7
Oklahoma	2,350.4		2,420.4
North Texas	1,038.9		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.