XML 43 R26.htm IDEA: XBRL DOCUMENT v3.24.0.1
Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information
(16) Segment Information

We manage and report our operations primarily according to the geography and the nature of the 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 transmission pipelines, natural gas processing plants, natural gas and NGL storage facilities, and fractionation facilities located in Louisiana and, prior to its sale in November 2023, 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 7. 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
Year Ended December 31, 2023
Natural gas sales$453.4 $444.7 $184.5 $76.6 $— $1,159.2 
NGL sales(12.0)3,031.2 8.5 (6.2)— 3,021.5 
Crude oil and condensate sales1,250.0 215.6 109.3 — — 1,574.9 
Product sales1,691.4 3,691.5 302.3 70.4 — 5,755.6 
NGL sales—related parties927.9 22.4 465.6 295.9 (1,711.8)— 
Crude oil and condensate sales—related parties— — — 10.5 (10.5)— 
Product sales—related parties927.9 22.4 465.6 306.4 (1,722.3)— 
Gathering and transportation114.6 79.9 236.8 203.9 — 635.2 
Processing60.1 1.6 144.4 123.4 — 329.5 
NGL services— 87.3 — 0.2 — 87.5 
Crude services23.9 19.6 17.5 0.7 — 61.7 
Other services7.3 1.3 0.5 0.8 — 9.9 
Midstream services205.9 189.7 399.2 329.0 — 1,123.8 
NGL services—related parties— — — 3.7 (3.7)— 
Midstream services—related parties— — — 3.7 (3.7)— 
Revenue from contracts with customers2,825.2 3,903.6 1,167.1 709.5 (1,726.0)6,879.4 
Realized gain on derivatives3.0 2.6 6.5 20.7 — 32.8 
Change in fair value of derivatives(5.0)4.1 (2.2)(9.0)— (12.1)
Total revenues2,823.2 3,910.3 1,171.4 721.2 (1,726.0)6,900.1 
Cost of sales, exclusive of operating expenses and depreciation and amortization(2,205.5)(3,388.4)(645.6)(342.6)1,726.0 (4,856.1)
Adjusted gross margin617.7 521.9 525.8 378.6 — 2,044.0 
Operating expenses(221.3)(130.3)(103.8)(102.8)— (558.2)
Segment profit396.4 391.6 422.0 275.8 — 1,485.8 
Depreciation and amortization(166.6)(151.3)(217.7)(115.8)(5.7)(657.1)
Gross margin229.8 240.3 204.3 160.0 (5.7)828.7 
Impairments— (20.7)— — — (20.7)
Gain (loss) on disposition of assets0.2 (2.0)0.9 1.2 — 0.3 
General and administrative— — — — (115.5)(115.5)
Interest expense, net of interest income— — — — (271.7)(271.7)
Loss from unconsolidated affiliate investments— — — — (8.2)(8.2)
Other loss— — — — (0.1)(0.1)
Income (loss) before non-controlling interest and income taxes$230.0 $217.6 $205.2 $161.2 $(401.2)$412.8 
Capital expenditures$267.3 $68.6 $69.2 $75.5 $6.2 $486.8 
PermianLouisianaOklahomaNorth TexasCorporateTotals
Year Ended December 31, 2022
Natural gas sales$1,078.7 $1,128.4 $367.5 $139.0 $— $2,713.6 
NGL sales(1.5)4,196.6 10.8 1.4 — 4,207.3 
Crude oil and condensate sales1,158.6 350.0 135.4 — — 1,644.0 
Product sales2,235.8 5,675.0 513.7 140.4 — 8,564.9 
NGL sales—related parties1,495.6 97.7 774.6 543.6 (2,911.5)— 
Crude oil and condensate sales—related parties— — 0.3 12.3 (12.6)— 
Product sales—related parties1,495.6 97.7 774.9 555.9 (2,924.1)— 
Gathering and transportation72.6 75.5 187.5 185.7 — 521.3 
Processing39.2 1.5 119.7 125.9 — 286.3 
NGL services— 82.0 — 0.2 — 82.2 
Crude services21.4 33.3 14.9 0.7 — 70.3 
Other services0.8 1.6 (0.3)0.7 — 2.8 
Midstream services134.0 193.9 321.8 313.2 — 962.9 
NGL services—related parties— — — 1.6 (1.6)— 
Crude services—related parties— — 0.1 — (0.1)— 
Other services—related parties— 0.2 — — (0.2)— 
Midstream services—related parties— 0.2 0.1 1.6 (1.9)— 
Revenue from contracts with customers3,865.4 5,966.8 1,610.5 1,011.1 (2,926.0)9,527.8 
Realized gain (loss) on derivatives(9.0)2.9 (13.1)(6.7)— (25.9)
Change in fair value of derivatives9.6 7.7 5.6 17.3 — 40.2 
Total revenues3,866.0 5,977.4 1,603.0 1,021.7 (2,926.0)9,542.1 
Cost of sales, exclusive of operating expenses and depreciation and amortization(3,280.3)(5,462.4)(1,124.4)(631.7)2,926.0 (7,572.8)
Adjusted gross margin585.7 515.0 478.6 390.0 — 1,969.3 
Operating expenses(200.2)(140.7)(90.9)(93.1)— (524.9)
Segment profit385.5 374.3 387.7 296.9 — 1,444.4 
Depreciation and amortization(154.5)(156.5)(201.8)(121.1)(5.5)(639.4)
Gross margin231.0 217.8 185.9 175.8 (5.5)805.0 
Gain (loss) on disposition of assets0.1 (13.8)0.5 (4.8)— (18.0)
General and administrative— — — — (125.2)(125.2)
Interest expense, net of interest income— — — — (245.0)(245.0)
Loss on extinguishment of debt— — — — (6.2)(6.2)
Loss from unconsolidated affiliate investments— — — — (5.6)(5.6)
Other income— — — — 0.8 0.8 
Income (loss) before non-controlling interest and income taxes$231.1 $204.0 $186.4 $171.0 $(386.7)$405.8 
Capital expenditures$210.2 $33.7 $63.8 $22.8 $7.1 $337.6 
PermianLouisianaOklahomaNorth TexasCorporateTotals
Year Ended December 31, 2021
Natural gas sales$609.4 $693.5 $213.4 $150.0 $— $1,666.3 
NGL sales0.9 3,353.1 2.0 1.1 — 3,357.1 
Crude oil and condensate sales677.4 212.0 81.2 — — 970.6 
Product sales1,287.7 4,258.6 296.6 151.1 — 5,994.0 
NGL sales—related parties1,008.4 129.7 630.8 447.0 (2,215.9)— 
Crude oil and condensate sales—related parties— — 0.1 7.1 (7.2)— 
Product sales—related parties1,008.4 129.7 630.9 454.1 (2,223.1)— 
Gathering and transportation46.8 64.7 186.9 157.0 — 455.4 
Processing29.1 2.4 98.7 108.3 — 238.5 
NGL services— 82.6 — 0.3 — 82.9 
Crude services18.4 39.3 12.8 0.7 — 71.2 
Other services0.2 1.7 0.6 0.5 — 3.0 
Midstream services94.5 190.7 299.0 266.8 — 851.0 
Crude services—related parties— — 0.3 — (0.3)— 
Other services—related parties— 2.4 — — (2.4)— 
Midstream services—related parties— 2.4 0.3 — (2.7)— 
Revenue from contracts with customers2,390.6 4,581.4 1,226.8 872.0 (2,225.8)6,845.0 
Realized loss on derivatives(75.6)(42.3)(22.6)(6.2)— (146.7)
Change in fair value of derivatives(7.7)0.7 — (5.4)— (12.4)
Total revenues2,307.3 4,539.8 1,204.2 860.4 (2,225.8)6,685.9 
Cost of sales, exclusive of operating expenses and depreciation and amortization(1,996.1)(4,091.2)(796.6)(531.8)2,225.8 (5,189.9)
Adjusted gross margin311.2 448.6 407.6 328.6 — 1,496.0 
Operating expenses(81.5)(123.7)(80.0)(77.7)— (362.9)
Segment profit229.7 324.9 327.6 250.9 — 1,133.1 
Depreciation and amortization(139.9)(141.0)(204.3)(114.3)(8.0)(607.5)
Gross margin89.8 183.9 123.3 136.6 (8.0)525.6 
Impairments— (0.6)— — (0.2)(0.8)
Gain on disposition of assets— 1.2 — 0.3 — 1.5 
General and administrative— — — — (107.8)(107.8)
Interest expense, net of interest income— — — — (238.7)(238.7)
Loss from unconsolidated affiliate investments— — — — (11.5)(11.5)
Income (loss) before non-controlling interest and income taxes$89.8$184.5$123.3$136.9$(366.2)$168.3
Capital expenditures$141.6 $9.3 $30.4 $11.9 $2.8 $196.0 
The table below represents information about segment assets as of December 31, 2023 and 2022 (in millions):
Segment Identifiable Assets:December 31, 2023December 31, 2022
Permian$2,813.6 $2,661.4 
Louisiana2,031.8 2,310.7 
Oklahoma2,275.8 2,420.4 
North Texas1,017.7 1,094.6 
Corporate (1)189.7 163.9 
Total identifiable assets$8,328.6 $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.