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Segment Information | 6 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Segment Information | Note 17 — Segment Information We operate in two primary segments: (i) Gathering and Processing, and (ii) Logistics and Transportation (also referred to as the Downstream Business). Our reportable segments include operating segments that have been aggregated based on the nature of the products and services provided. Our Gathering and Processing segment includes assets used in the gathering of natural gas produced from oil and gas wells and processing this raw natural gas into merchantable natural gas by extracting NGLs and removing impurities; and assets used for crude oil gathering and terminaling. The Gathering and Processing segment's assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast and the Gulf of Mexico. Our Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling and marketing of NGLs and NGL products, including services to LPG exporters; and certain natural gas supply and marketing activities in support of our other businesses. The Logistics and Transportation segment also includes the Grand Prix NGL pipeline (“Grand Prix”), which connects our gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with our downstream facilities in Mont Belvieu, Texas. The associated assets are generally connected to and supplied in part by our Gathering and Processing segment and, except for pipelines and smaller terminals, are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana. Other contains the mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. Elimination of inter-segment transactions are reflected in the corporate and eliminations column. Reportable segment information is shown in the following tables:
|  | Three Months Ended June 30, 2020 |
|  | Gathering and Processing |  |  | Logistics and Transportation |  |  | Other |  |  | Corporate and Eliminations |  |  | Total |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales of commodities |  | $ | 133.5 |  |  | $ | 1,136.3 |  |  | $ | 10.8 |  |  | $ | — |  |  | $ | 1,280.6 |
Fees from midstream services |  |  | 110.0 |  |  |  | 132.9 |  |  |  | — |  |  |  | — |  |  |  | 242.9 |
|  |  | 243.5 |  |  |  | 1,269.2 |  |  |  | 10.8 |  |  |  | — |  |  |  | 1,523.5 |
Intersegment revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales of commodities |  |  | 389.2 |  |  |  | 46.1 |  |  |  | — |  |  |  | (435.3 | ) |  |  | — |
Fees from midstream services |  |  | 1.5 |  |  |  | 7.3 |  |  |  | — |  |  |  | (8.8 | ) |  |  | — |
|  |  | 390.7 |  |  |  | 53.4 |  |  |  | — |  |  |  | (444.1 | ) |  |  | — |
Revenues |  | $ | 634.2 |  |  | $ | 1,322.6 |  |  | $ | 10.8 |  |  | $ | (444.1 | ) |  | $ | 1,523.5 |
Operating margin |  | $ | 237.2 |  |  | $ | 231.5 |  |  | $ | 10.8 |  |  | $ | — |  |  | $ | 479.5 |
Other financial information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets (1) |  | $ | 9,124.2 |  |  | $ | 6,697.2 |  |  | $ | 22.0 |  |  | $ | 122.0 |  |  | $ | 15,965.4 |
Goodwill |  | $ | 45.2 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 45.2 |
Capital expenditures |  | $ | 37.1 |  |  | $ | 127.9 |  |  | $ | — |  |  | $ | 4.6 |  |  | $ | 169.6 |
| (1) | Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.
|  | Three Months Ended June 30, 2019 |
|  | Gathering and Processing |  |  | Logistics and Transportation |  |  | Other |  |  | Corporate and Eliminations |  |  | Total |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales of commodities |  | $ | 298.4 |  |  | $ | 1,378.8 |  |  | $ | 7.0 |  |  | $ | — |  |  | $ | 1,684.2 |
Fees from midstream services |  |  | 176.2 |  |  |  | 134.9 |  |  |  | — |  |  |  | — |  |  |  | 311.1 |
|  |  | 474.6 |  |  |  | 1,513.7 |  |  |  | 7.0 |  |  |  | — |  |  |  | 1,995.3 |
Intersegment revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales of commodities |  |  | 539.7 |  |  |  | 43.6 |  |  |  | — |  |  |  | (583.3 | ) |  |  | — |
Fees from midstream services |  |  | 1.5 |  |  |  | 7.0 |  |  |  | — |  |  |  | (8.5 | ) |  |  | — |
|  |  | 541.2 |  |  |  | 50.6 |  |  |  | — |  |  |  | (591.8 | ) |  |  | — |
Revenues |  | $ | 1,015.8 |  |  | $ | 1,564.3 |  |  | $ | 7.0 |  |  | $ | (591.8 | ) |  | $ | 1,995.3 |
Operating margin |  | $ | 232.1 |  |  | $ | 184.4 |  |  | $ | 7.0 |  |  | $ | — |  |  | $ | 423.5 |
Other financial information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets (1) |  | $ | 12,144.4 |  |  | $ | 5,994.7 |  |  | $ | 19.0 |  |  | $ | 160.1 |  |  | $ | 18,318.2 |
Goodwill |  | $ | 46.6 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 46.6 |
Capital expenditures |  | $ | 420.8 |  |  | $ | 425.5 |  |  | $ | — |  |  | $ | 10.8 |  |  | $ | 857.1 |
(1) | Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.
|  | Six Months Ended June 30, 2020 |
|  | Gathering and Processing |  |  | Logistics and Transportation |  |  | Other |  |  | Corporate and Eliminations |  |  | Total |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales of commodities |  | $ | 377.3 |  |  | $ | 2,555.7 |  |  | $ | 127.2 |  |  | $ | — |  |  | $ | 3,060.2 |
Fees from midstream services |  |  | 228.2 |  |  |  | 284.0 |  |  |  | — |  |  |  | — |  |  |  | 512.2 |
|  |  | 605.5 |  |  |  | 2,839.7 |  |  |  | 127.2 |  |  |  | — |  |  |  | 3,572.4 |
Intersegment revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales of commodities |  |  | 832.4 |  |  |  | 102.7 |  |  |  | — |  |  |  | (935.1 | ) |  |  | — |
Fees from midstream services |  |  | 3.3 |  |  |  | 15.4 |  |  |  | — |  |  |  | (18.7 | ) |  |  | — |
|  |  | 835.7 |  |  |  | 118.1 |  |  |  | — |  |  |  | (953.8 | ) |  |  | — |
Revenues |  | $ | 1,441.2 |  |  | $ | 2,957.8 |  |  | $ | 127.2 |  |  | $ | (953.8 | ) |  | $ | 3,572.4 |
Operating margin |  | $ | 492.8 |  |  | $ | 525.5 |  |  | $ | 127.2 |  |  | $ | — |  |  | $ | 1,145.5 |
Other financial information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets (1) |  | $ | 9,124.2 |  |  | $ | 6,697.2 |  |  | $ | 22.0 |  |  | $ | 122.0 |  |  | $ | 15,965.4 |
Goodwill |  | $ | 45.2 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 45.2 |
Capital expenditures |  | $ | 154.6 |  |  | $ | 306.3 |  |  | $ | — |  |  | $ | 12.9 |  |  | $ | 473.8 |
(1) | Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.
|  | Six Months Ended June 30, 2019 |
|  | Gathering and Processing |  |  | Logistics and Transportation |  |  | Other |  |  | Corporate and Eliminations |  |  | Total |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales of commodities |  | $ | 555.1 |  |  | $ | 3,105.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,660.7 |
Fees from midstream services |  |  | 376.1 |  |  |  | 257.9 |  |  |  | — |  |  |  | — |  |  |  | 634.0 |
|  |  | 931.2 |  |  |  | 3,363.5 |  |  |  | — |  |  |  | — |  |  |  | 4,294.7 |
Intersegment revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales of commodities |  |  | 1,362.5 |  |  |  | 82.1 |  |  |  | — |  |  |  | (1,444.6 | ) |  |  | — |
Fees from midstream services |  |  | 3.3 |  |  |  | 12.5 |  |  |  | — |  |  |  | (15.8 | ) |  |  | — |
|  |  | 1,365.8 |  |  |  | 94.6 |  |  |  | — |  |  |  | (1,460.4 | ) |  |  | — |
Revenues |  | $ | 2,297.0 |  |  | $ | 3,458.1 |  |  | $ | — |  |  | $ | (1,460.4 | ) |  | $ | 4,294.7 |
Operating margin |  | $ | 470.3 |  |  | $ | 336.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 806.6 |
Other financial information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets (1) |  | $ | 12,144.4 |  |  | $ | 5,994.7 |  |  | $ | 19.0 |  |  | $ | 160.1 |  |  | $ | 18,318.2 |
Goodwill |  | $ | 46.6 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 46.6 |
Capital expenditures |  | $ | 838.5 |  |  | $ | 896.3 |  |  | $ | — |  |  | $ | 27.8 |  |  | $ | 1,762.6 |
(1) | Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities.
The following table shows our consolidated revenues disaggregated by product and service for the periods presented:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Sales of commodities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue recognized from contracts with customers: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Natural gas |  | $ | 269.7 |  |  | $ | 217.6 |  |  | $ | 542.8 |  |  | $ | 628.9 |
NGL |  |  | 908.2 |  |  |  | 1,195.5 |  |  |  | 2,069.5 |  |  |  | 2,591.9 |
Condensate and crude oil |  |  | 27.6 |  |  |  | 172.1 |  |  |  | 163.3 |  |  |  | 309.8 |
Petroleum products |  |  | 6.8 |  |  |  | 56.8 |  |  |  | 56.5 |  |  |  | 76.0 |
|  |  | 1,212.3 |  |  |  | 1,642.0 |  |  |  | 2,832.1 |  |  |  | 3,606.6 |
Non-customer revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative activities - Hedge |  |  | 60.2 |  |  |  | 43.3 |  |  |  | 120.3 |  |  |  | 64.6 |
Derivative activities - Non-hedge (1) |  |  | 8.1 |  |  |  | (1.1 | ) |  |  | 107.8 |  |  |  | (10.5 | )
|  |  | 68.3 |  |  |  | 42.2 |  |  |  | 228.1 |  |  |  | 54.1 |
Total sales of commodities |  |  | 1,280.6 |  |  |  | 1,684.2 |  |  |  | 3,060.2 |  |  |  | 3,660.7 |
Fees from midstream services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue recognized from contracts with customers: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gathering and processing |  |  | 107.4 |  |  |  | 177.5 |  |  |  | 223.3 |  |  |  | 371.9 |
NGL transportation, fractionation and services |  |  | 32.9 |  |  |  | 40.1 |  |  |  | 72.8 |  |  |  | 76.3 |
Storage, terminaling and export |  |  | 89.1 |  |  |  | 90.4 |  |  |  | 188.8 |  |  |  | 170.0 |
Other |  |  | 13.5 |  |  |  | 3.1 |  |  |  | 27.3 |  |  |  | 15.8 |
Total fees from midstream services |  |  | 242.9 |  |  |  | 311.1 |  |  |  | 512.2 |  |  |  | 634.0 |
Total revenues |  | $ | 1,523.5 |  |  | $ | 1,995.3 |  |  | $ | 3,572.4 |  |  | $ | 4,294.7 |
(1) | Represents derivative activities that are not designated as hedging instruments under ASC 815.
The following table shows a reconciliation of reportable segment operating margin to income (loss) before income taxes for the periods presented:
| Three Months Ended June 30, |  |  | Six Months Ended June 30, |
| 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Reconciliation of reportable segment operating margin to income (loss) before income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gathering and Processing operating margin | $ |  | 237.2 |  |  | $ |  | 232.1 |  |  | $ |  | 492.8 |  |  | $ |  | 470.3 |
Logistics and Transportation operating margin |  |  | 231.5 |  |  |  |  | 184.4 |  |  |  |  | 525.5 |  |  |  |  | 336.3 |
Other operating margin |  |  | 10.8 |  |  |  |  | 7.0 |  |  |  |  | 127.2 |  |  |  |  | — |
Depreciation and amortization expense |  |  | (204.5 | ) |  |  |  | (237.2 | ) |  |  |  | (443.6 | ) |  |  |  | (474.6 | )
General and administrative expense |  |  | (61.5 | ) |  |  |  | (72.8 | ) |  |  |  | (121.9 | ) |  |  |  | (153.6 | )
Impairment of long-lived assets |  |  | — |  |  |  |  | — |  |  |  |  | (2,442.8 | ) |  |  |  | — |
Interest expense, net |  |  | (96.7 | ) |  |  |  | (72.1 | ) |  |  |  | (194.7 | ) |  |  |  | (152.7 | )
Equity earnings (loss) |  |  | 14.9 |  |  |  |  | 3.2 |  |  |  |  | 35.5 |  |  |  |  | 5.9 |
Gain (loss) on sale or disposition of business and assets |  |  | 0.7 |  |  |  |  | 0.2 |  |  |  |  | — |  |  |  |  | (3.1 | )
Gain (loss) from financing activities |  |  | 21.8 |  |  |  |  | — |  |  |  |  | 61.1 |  |  |  |  | (1.4 | )
Change in contingent considerations |  |  | — |  |  |  |  | 0.8 |  |  |  |  | — |  |  |  |  | (8.9 | )
Other, net |  |  | (0.3 | ) |  |  |  | — |  |  |  |  | (0.8 | ) |  |  |  | (0.2 | )
Income (loss) before income taxes | $ |  | 153.9 |  |  | $ |  | 45.6 |  |  | $ |  | (1,961.7 | ) |  | $ |  | 18.0 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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