Segments

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segments

Note 11. Segments

Our operations are located in the United States and are organized into three reportable segments: (1) gathering, (2) processing and storage and (3) terminaling and export. Our reportable segments comprise the structure used by our Chief Executive Officer and Chief Financial Officer, who, collectively, have been determined to be our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. These segments are strategic business units with differing products and services. Interest and Other includes certain functional departments that do not recognize revenues.

Our CODM evaluates the segments’ operating performance based on Adjusted EBITDA, defined as net income (loss) before interest expense, income tax expense (benefit), and depreciation and amortization, as further adjusted for other non-cash, non‑recurring items, if applicable. For all of the segments, the CODM uses segment Adjusted EBITDA in the annual budgeting and monthly forecasting process. The CODM considers budget-to-current forecast and prior forecast-to-current forecast variances for Adjusted EBITDA on a monthly basis for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment.

The following tables reflect certain financial data for each reportable segment:

	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Three Months Ended June 30, 2024
Revenues and other income	$	195.5	$	139.5	$	30.5	$	365.5	$	-	$	365.5
Operating and maintenance expenses    (exclusive of depreciation shown    separately below)		50.8		27.3		9.4		87.5		-		87.5
Depreciation expense		31.5		14.6		4.4		50.5		-		50.5
General and administrative expenses		2.3		1.0		0.2		3.5		1.7		5.2
Income from equity investments		-		3.7		-		3.7		-		3.7
Interest expense, net		-		-		-		-		49.7		49.7
Income tax expense		-		-		-		-		16.0		16.0
Adjusted EBITDA		142.4		114.9		20.9		278.2
Capital expenditures		69.5		3.2		-		72.7
	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Three Months Ended June 30, 2023
Revenues and other income	$	174.5	$	122.8	$	26.7	$	324.0	$	-	$	324.0
Operating and maintenance expenses    (exclusive of depreciation shown    separately below)		43.8		23.8		5.5		73.1		-		73.1
Depreciation expense		28.2		14.5		4.3		47.0		-		47.0
General and administrative expenses		2.5		1.1		0.2		3.8		2.0		5.8
Income from equity investments		-		1.7		-		1.7		-		1.7
Interest expense, net		-		-		-		-		43.8		43.8
Income tax expense		-		-		-		-		8.1		8.1
Adjusted EBITDA		128.2		99.6		21.0		248.8
Capital expenditures		46.4		2.7		3.0		52.1

	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Six Months Ended June 30, 2024
Revenues and other income	$	383.6	$	278.6	$	58.9	$	721.1	$	-	$	721.1
Operating and maintenance expenses    (exclusive of depreciation shown    separately below)		97.1		52.5		16.0		165.6		-		165.6
Depreciation expense		62.3		29.3		8.7		100.3		-		100.3
General and administrative expenses		4.4		2.2		0.4		7.0		3.9		10.9
Income from equity investments		-		6.4		-		6.4		-		6.4
Interest expense, net		-		-		-		-		98.2		98.2
Income tax expense		-		-		-		-		30.3		30.3
Adjusted EBITDA		282.1		230.3		42.5		554.9
Capital expenditures		101.2		6.6		0.1		107.9
	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Six Months Ended June 30, 2023
Revenues and other income	$	339.2	$	237.2	$	52.6	$	629.0	$	-	$	629.0
Operating and maintenance expenses    (exclusive of depreciation shown    separately below)		82.2		44.0		9.4		135.6		-		135.6
Depreciation expense		57.0		29.0		8.4		94.4		-		94.4
General and administrative expenses		4.9		2.3		0.5		7.7		4.5		12.2
Income from equity investments		-		3.3		-		3.3		-		3.3
Interest expense, net		-		-		-		-		85.4		85.4
Income tax expense		-		-		-		-		14.6		14.6
Adjusted EBITDA		252.1		194.2		42.7		489.0
Capital expenditures		95.8		3.6		10.0		109.4

The following table presents a reconciliation of reportable segment Adjusted EBITDA to income before income tax expense:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Reconciliation of reportable segment Adjusted    EBITDA to income before income tax expense:
Total reportable segment Adjusted EBITDA	$	278.2	$	248.8	$	554.9	$	489.0
Less:
Depreciation expense		50.5		47.0		100.3		94.4
Unallocated general and administrative expenses		1.7		2.0		3.9		4.5
Interest expense, net		49.7		43.8		98.2		85.4
Income before income tax expense	$	176.3	$	156.0	$	352.5	$	304.7

Total assets for the reportable segments are as follows:

	June 30, 2024		December 31, 2023
(in millions)
Gathering	$	2,167.3	$	2,138.6
Processing and Storage(1)		1,018.7		1,048.4
Terminaling and Export		255.4		264.4
Interest and Other		608.7		338.1
Total assets	$	4,050.1	$	3,789.5

(1) Includes investment in equity investees of $89.2 million as of June 30, 2024 and $90.2 million as of December 31, 2023.