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Segment Reporting | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting Description of Segments Our consolidated financial statements reflect three reportable segments: Fuel Distribution, Pipeline Systems and Terminals. Fuel Distribution. Our Fuel Distribution segment supplies motor fuel to independently-operated dealer stations, distributors, commission agents and other consumers. Also included in our Fuel Distribution segment is lease income from properties that we lease or sublease, as well as the Partnership’s credit card services, franchise royalties and retail operations in Hawaii and New Jersey. Pipeline Systems. Our Pipeline Systems segment includes an integrated pipeline and terminal network comprised of approximately 6,000 miles of refined product pipeline (including the pipeline of our J.C. Nolan joint venture), approximately 6,000 miles of crude oil pipeline (including the pipelines of ET-S Permian), approximately 2,000 miles of ammonia pipeline and 67 terminals. Terminals. Our Terminals segment is composed of four transmix processing facilities and 56 refined product terminals (two in Europe, six in Hawaii and 48 in the continental United States). Segment Operating Results The Partnership evaluates performance and allocates resources for all of its reportable segments based on Segment Adjusted EBITDA. The Partnership’s chief operating decision maker (“CODM”) is its chief operating officer. The CODM uses Segment Adjusted EBITDA to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. The CODM considers forecast-to-actual variances on a monthly basis when making decisions about allocating capital and personnel to the segments. The CODM also uses Segment Adjusted EBITDA to assess the performance for each segment by comparing the results and return on assets of each segment with one another and in the compensation of certain employees. The Partnership’s reportable segments are business units that offer different products and services. The reportable segments are each managed separately because they provide different services and products. We report Adjusted EBITDA by segment as a measure of segment performance. We define Adjusted EBITDA as net income before net interest expense, income tax expense, depreciation, amortization and accretion expense, non-cash compensation expense, gains and losses on disposal of assets and impairment charges, unrealized gains and losses on commodity derivatives, inventory adjustments and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations. Inventory valuation adjustments that are excluded from the calculation of Adjusted EBITDA represent changes in lower of cost or market reserves on the Partnership's inventory. These amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period. The following tables present financial information by segment for the years ended December 31, 2024, 2023 and 2022.
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Revenues: |  |  |  |  |
Fuel Distribution |  |  |  |  |
Revenues from external customers | $ | 21,781 |  |  | $ | 22,955 |  |  | $ | 25,629 |
Intersegment revenues | 41 |  |  | 31 |  |  | 31 |
| 21,822 |  |  | 22,986 |  |  | 25,660 |
Pipeline Systems |  |  |  |  |
Revenues from external customers | 562 |  |  | 1 |  |  | — |
Intersegment revenues | 3 |  |  | — |  |  | — |
| 565 |  |  | 1 |  |  | — |
Terminals |  |  |  |  |
Revenues from external customers | 350 |  |  | 112 |  |  | 100 |
Intersegment revenues | 985 |  |  | 373 |  |  | 436 |
| 1,335 |  |  | 485 |  |  | 536 |
Eliminations | (1,029) |  |  | (404) |  |  | (467) |
Total | $ | 22,693 |  |  | $ | 23,068 |  |  | $ | 25,729 |
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Cost of sales: |  |  |  |  |
Fuel Distribution | $ | 20,635 |  |  | $ | 21,761 |  |  | $ | 24,419 |
Pipeline Systems | 30 |  |  | (2) |  |  | — |
Terminals | 959 |  |  | 348 |  |  | 398 |
Eliminations | (1,029) |  |  | (404) |  |  | (467) |
Total | $ | 20,595 |  |  | $ | 21,703 |  |  | $ | 24,350 |
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Operating expenses, excluding non-cash compensation: |  |  |  |  |
Fuel Distribution | $ | 325 |  |  | $ | 350 |  |  | $ | 330 |
Pipeline Systems | 136 |  |  | 2 |  |  | — |
Terminals | 150 |  |  | 67 |  |  | 66 |
Total | $ | 611 |  |  | $ | 419 |  |  | $ | 396 |
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
General and administrative expenses, excluding non-cash compensation: |  |  |  |  |
Fuel Distribution | $ | 88 |  |  | $ | 113 |  |  | $ | 110 |
Pipeline Systems | 123 |  |  | — |  |  | — |
Terminals | 55 |  |  | 1 |  |  | 1 |
Total | $ | 266 |  |  | $ | 114 |  |  | $ | 111 |
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Other(1): |  |  |  |  |
Fuel Distribution | $ | (134) |  |  | $ | (103) |  |  | $ | (37) |
Pipeline Systems | (101) |  |  | (10) |  |  | (10) |
Terminals | (1) |  |  | (19) |  |  | — |
Total | $ | (236) |  |  | $ | (132) |  |  | $ | (47) |
(1) Other by segment includes Adjusted EBITDA from unconsolidated affiliates, unrealized gains and losses on commodity derivatives, inventory valuation adjustments and other less significant items, as applicable.
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Segment Adjusted EBITDA: |  |  |  |  |
Fuel Distribution | $ | 908 |  |  | $ | 865 |  |  | $ | 838 |
Pipeline Systems | 377 |  |  | 11 |  |  | 10 |
Terminals | 172 |  |  | 88 |  |  | 71 |
Total | $ | 1,457 |  |  | $ | 964 |  |  | $ | 919 |
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Reconciliation of net income to Adjusted EBITDA: |  |  |  |  |
Net income | $ | 874 |  |  | $ | 394 |  |  | $ | 475 |
Depreciation, amortization and accretion | 368 |  |  | 187 |  |  | 193 |
Interest expense, net | 391 |  |  | 217 |  |  | 182 |
Non-cash unit-based compensation expense | 17 |  |  | 17 |  |  | 14 |
(Gain) loss on disposal of assets and impairment charges | 45 |  |  | (7) |  |  | (13) |
Loss on extinguishment of debt | 2 |  |  | — |  |  | — |
Unrealized (gains) losses on commodity derivatives | 12 |  |  | (21) |  |  | 21 |
Inventory valuation adjustments | 86 |  |  | 114 |  |  | (5) |
Equity in earnings of unconsolidated affiliates | (60) |  |  | (5) |  |  | (4) |
Adjusted EBITDA related to unconsolidated affiliates | 101 |  |  | 10 |  |  | 10 |
Gain on West Texas Sale | (586) |  |  | — |  |  | — |
Other non-cash adjustments | 32 |  |  | 22 |  |  | 20 |
Income tax expense | 175 |  |  | 36 |  |  | 26 |
Adjusted EBITDA (consolidated) | $ | 1,457 |  |  | $ | 964 |  |  | $ | 919 |
Total revenues by geographic area are shown in the table below:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
United States | $ | 22,649 |  |  | $ | 23,068 |  |  | $ | 25,729 |
Foreign | 44 |  |  | — |  |  | — |
Total | $ | 22,693 |  |  | $ | 23,068 |  |  | $ | 25,729 |
Total assets by reportable segment were as follows:
| December 31, 2024 |  | December 31, 2023 |  | December 31, 2022
Assets: |  |  |  |  |
Fuel Distribution | $ | 6,047 |  |  | $ | 6,047 |  |  | $ | 6,022 |
Pipeline Systems | 6,213 |  |  | 49 |  |  | 53 |
Terminals | 1,944 |  |  | 672 |  |  | 643 |
Total segment assets | 14,204 |  |  | 6,768 |  |  | 6,718 |
Other partnership assets | 171 |  |  | 58 |  |  | 112 |
Total assets | $ | 14,375 |  |  | $ | 6,826 |  |  | $ | 6,830 |
Additions to property and equipment (excluding acquisitions) by reportable segment were as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Fuel Distribution | $ | 231 |  |  | $ | 182 |  |  | $ | 154 |
Pipeline Systems | 44 |  |  | 5 |  |  | 12 |
Terminals | 69 |  |  | 28 |  |  | 20 |
Total | $ | 344 |  |  | $ | 215 |  |  | $ | 186 |

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- Definition The entire disclosure for reporting segments including data and tables. 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