Segment Information (Tables)

3 Months Ended

Mar. 31, 2024

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 March 31, 2024
Natural gas sales	$	104.2	$	119.6	$	32.8	$	24.9	$	—	$	281.5
NGL sales	(6.6)		768.1		(1.0)		(4.8)		—		755.7
Crude oil and condensate sales	336.6		—		30.9		—		—		367.5
Other	—		—		—		0.3		—		0.3
Product sales	434.2		887.7		62.7		20.4		—		1,405.0
Natural gas sales—related parties	—		0.1		—		—		(0.1)		—
NGL sales—related parties	257.6		9.5		108.7		70.6		(446.4)		—
Crude oil and condensate sales—related parties	—		—		—		3.3		(3.3)		—
Product sales—related parties	257.6		9.6		108.7		73.9		(449.8)		—
Gathering and transportation	39.7		24.4		55.8		45.6		—		165.5
Processing	17.0		0.6		33.6		27.6		—		78.8
NGL services	—		17.3		—		0.1		—		17.4
Crude services	3.8		0.1		3.7		0.2		—		7.8
Other services	1.9		0.1		0.1		0.3		—		2.4
Midstream services	62.4		42.5		93.2		73.8		—		271.9


NGL services—related parties	—		—		—		0.5		(0.5)		—


Midstream services—related parties	—		—		—		0.5		(0.5)		—
Revenue from contracts with customers	754.2		939.8		264.6		168.6		(450.3)		1,676.9
Realized gain (loss) on derivatives	(6.8)		6.4		(1.0)		(1.5)		—		(2.9)
Change in fair value of derivatives	(2.4)		(19.5)		(4.1)		(0.1)		—		(26.1)
Total revenues	745.0		926.7		259.5		167.0		(450.3)		1,647.9
Cost of sales, exclusive of operating expenses and depreciation and amortization	(582.1)		(789.5)		(147.8)		(81.3)		450.3		(1,150.4)
Adjusted gross margin	162.9		137.2		111.7		85.7		—		497.5
Operating expenses	(73.9)		(26.8)		(26.0)		(25.9)		—		(152.6)
Segment profit	89.0		110.4		85.7		59.8		—		344.9
Depreciation and amortization	(43.6)		(35.1)		(56.5)		(28.5)		(1.6)		(165.3)
Gross margin	45.4		75.3		29.2		31.3		(1.6)		179.6
Impairments	—		—		—		(14.2)		—		(14.2)
Gain on disposition of assets	—		1.7		—		—		—		1.7
General and administrative	—		—		—		—		(55.2)		(55.2)
Interest expense, net of interest income	—		—		—		—		(65.4)		(65.4)

Loss from unconsolidated affiliate investments	—		—		—		—		(0.8)		(0.8)
Other income	—		—		—		—		0.5		0.5
Income (loss) before non-controlling interest and income taxes	$	45.4	$	77.0	$	29.2	$	17.1	$	(122.5)	$	46.2
Capital expenditures	$	48.6	$	31.6	$	11.8	$	10.5	$	0.9	$	103.4


	Permian		Louisiana		Oklahoma		North Texas		Corporate		Totals
Three Months Ended March 31, 2023
Natural gas sales	$	129.3	$	131.8	$	66.8	$	14.5	$	—	$	342.4
NGL sales	0.4		857.9		8.6		(1.0)		—		865.9
Crude oil and condensate sales	186.7		56.6		24.7		—		—		268.0

Product sales	316.4		1,046.3		100.1		13.5		—		1,476.3

NGL sales—related parties	237.5		4.4		118.0		79.5		(439.4)		—
Crude oil and condensate sales—related parties	—		—		—		2.7		(2.7)		—
Product sales—related parties	237.5		4.4		118.0		82.2		(442.1)		—
Gathering and transportation	23.3		20.0		54.8		52.1		—		150.2
Processing	14.0		0.3		35.3		32.1		—		81.7
NGL services	—		27.8		—		—		—		27.8
Crude services	6.0		6.5		4.5		0.2		—		17.2
Other services	1.7		0.4		0.1		0.2		—		2.4
Midstream services	45.0		55.0		94.7		84.6		—		279.3


NGL services—related parties	—		—		—		0.6		(0.6)		—


Midstream services—related parties	—		—		—		0.6		(0.6)		—
Revenue from contracts with customers	598.9		1,105.7		312.8		180.9		(442.7)		1,755.6
Realized gain (loss) on derivatives	(4.0)		7.2		2.0		8.1		—		13.3
Change in fair value of derivatives	6.3		(9.0)		(1.4)		2.7		—		(1.4)
Total revenues	601.2		1,103.9		313.4		191.7		(442.7)		1,767.5
Cost of sales, exclusive of operating expenses and depreciation and amortization	(457.1)		(973.9)		(194.0)		(89.6)		442.7		(1,271.9)
Adjusted gross margin	144.1		130.0		119.4		102.1		—		495.6
Operating expenses	(48.1)		(33.6)		(24.7)		(26.0)		—		(132.4)
Segment profit	96.0		96.4		94.7		76.1		—		363.2
Depreciation and amortization	(40.0)		(38.3)		(51.9)		(28.8)		(1.4)		(160.4)
Gross margin	56.0		58.1		42.8		47.3		(1.4)		202.8

Gain on disposition of assets	—		0.1		0.2		0.1		—		0.4
General and administrative	—		—		—		—		(29.5)		(29.5)
Interest expense, net of interest income	—		—		—		—		(68.5)		(68.5)

Loss from unconsolidated affiliate investments	—		—		—		—		(0.1)		(0.1)

Income (loss) before non-controlling interest and income taxes	$	56.0	$	58.2	$	43.0	$	47.4	$	(99.5)	$	105.1

Capital expenditures	$	56.7	$	12.3	$	25.7	$	18.1	$	1.3	$	114.1

Schedule of Segment Assets

The table below represents information about segment assets as of March 31, 2024 and December 31, 2023 (in millions):


Segment Identifiable Assets:	March 31, 2024		December 31, 2023
Permian	$	2,784.9	$	2,813.6
Louisiana	1,963.8		2,031.8
Oklahoma	2,214.0		2,275.8
North Texas	962.6		1,017.7
Corporate (1)	202.7		189.7
Total identifiable assets	$	8,128.0	$	8,328.6

____________________________

(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.