Segments

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segments

Note 12. Segments

Our operations are located in the United States and are organized into three reportable segments: (i) gathering, (ii) processing and storage and (iii) 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. The accounting policies of the segments are identical to those described in Note 2, Summary of Significant Accounting Policies and Basis of Presentation.

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.

Gathering. Our gathering segment consists of the following assets:

•Natural Gas Gathering and Compression. A natural gas gathering and compression system located primarily in McKenzie, Williams and Mountrail Counties, North Dakota connecting Hess and third‑party owned or operated wells to the Tioga Gas Plant, LM4 gas processing plant, and third‑party pipeline facilities. The system also includes the Hawkeye Gas Facility.

•Crude Oil Gathering: A crude oil gathering system located primarily in McKenzie, Williams, and Mountrail Counties, North Dakota, connecting Hess and third‑party owned or operated wells to the Ramberg Terminal Facility and the Johnson’s Corner Header System. The system also includes the Hawkeye Oil Facility.

•Produced Water Gathering and Disposal. A produced water gathering system and disposal facilities located primarily in Williams and Mountrail Counties, North Dakota.

Processing and Storage. Our processing and storage segment consists of the following assets:

•Tioga Gas Plant (TGP). A natural gas processing and fractionation plant located in Tioga, North Dakota.

•Mentor Storage Terminal. A propane storage cavern and rail and truck loading and unloading facility located in Mentor, Minnesota.

•Equity Investment in LM4 Joint Venture. The Partnership’s 50% equity method investment in LM4 joint venture that owns a natural gas processing plant located in McKenzie County, North Dakota.

Terminaling and Export. Our terminaling and export segment consists of the following assets:

•Ramberg Terminal Facility. A crude oil pipeline and truck receipt terminal located in Williams County, North Dakota that is capable of delivering crude oil into an interconnecting pipeline for transportation to the Tioga Rail Terminal, Dakota Access Pipeline (“DAPL”) and other third‑party pipelines and storage facilities.

•Tioga Rail Terminal. A crude oil and NGL rail loading terminal in Tioga, North Dakota that is connected to the Tioga Gas Plant, the Ramberg Terminal Facility and our crude oil gathering system.

•Crude Oil Rail Cars. A total of 550 crude oil rail cars, constructed to the DOT‑117 safety standards, which we operate as unit trains consisting of approximately 100 to 110 crude oil rail cars.

•Johnson’s Corner Header System. An approximately six‑mile crude oil pipeline header system located in McKenzie County, North Dakota that receives crude oil by pipeline from Hess and third parties and delivers crude oil to DAPL and other third‑party interstate pipeline systems.

•Other DAPL Connections. Various connections into DAPL that receive crude oil by pipeline from the crude oil gathering system for delivery into DAPL.

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 Year Ended December 31, 2024
Revenues and other income	$	799.1	$	577.7	$	118.7	$	1,495.5	$	-	$	1,495.5
Operating and maintenance expenses    (exclusive of depreciation shown    separately below)		203.5		112.9		30.9		347.3		-		347.3
Depreciation expense		126.7		59.1		17.3		203.1		-		203.1
General and administrative expenses		10.3		5.3		1.0		16.6		9.5		26.1
Income from equity investments		-		14.0		-		14.0		-		14.0
Interest expense, net		-		-		-		-		202.2		202.2
Income tax expense		-		-		-		-		71.8		71.8
Adjusted EBITDA		585.3		473.5		86.8		1,145.6
Capital expenditures		270.2		17.6		0.7		288.5
	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Year Ended December 31, 2023
Revenues and other income	$	730.0	$	501.7	$	116.9	$	1,348.6	$	-	$	1,348.6
Operating and maintenance expenses    (exclusive of depreciation shown    separately below)		185.3		99.0		28.7		313.0		-		313.0
Depreciation expense		115.6		59.9		17.0		192.5		-		192.5
General and administrative expenses		10.9		5.3		1.3		17.5		8.7		26.2
Income from equity investments		-		7.7		-		7.7		-		7.7
Interest expense, net		-		-		-		-		179.0		179.0
Income tax expense		-		-		-		-		37.9		37.9
Adjusted EBITDA		533.8		405.1		86.9		1,025.8
Capital expenditures		224.5		11.2		10.0		245.7
	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Year Ended December 31, 2022
Revenues and other income	$	677.9	$	470.8	$	126.5	$	1,275.2	$	-	$	1,275.2
Operating and maintenance expenses    (exclusive of depreciation shown    separately below)		170.2		85.0		24.4		279.6		-		279.6
Depreciation expense		107.4		57.7		16.2		181.3		-		181.3
General and administrative expenses		10.7		4.3		0.9		15.9		7.2		23.1
Income from equity investments		-		5.3		-		5.3		-		5.3
Interest expense, net		-		-		-		-		149.3		149.3
Income tax expense		-		-		-		-		26.6		26.6
Adjusted EBITDA		497.0		386.8		101.2		985.0
Capital expenditures		210.2		8.8		12.8		231.8

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

	Year Ended December 31,
(in millions)	2024		2023		2022
Reconciliation of reportable segment Adjusted    EBITDA to income before income tax expense:
Total reportable segment Adjusted EBITDA	$	1,145.6	$	1,025.8	$	985.0
Less:
Depreciation expense		203.1		192.5		181.3
Unallocated general and administrative expenses		9.5		8.7		7.2
Interest expense, net		202.2		179.0		149.3
Income before income tax expense	$	730.8	$	645.6	$	647.2

Total assets for reportable segments are as follows:

	December 31, 2024		December 31, 2023
(in millions)
Gathering	$	2,299.0	$	2,138.6
Processing and Storage(1)		1,010.9		1,048.4
Terminaling and Export		248.1		264.4
Total reportable segments assets		3,558.0		3,451.4
Interest and Other		593.0		338.1
Total consolidated assets	$	4,151.0	$	3,789.5

(1)Includes investment in equity investees of $87.0 million as of December 31, 2024 and $90.2 million as of December 31, 2023.