Segment Data (Tables)

9 Months Ended

Sep. 30, 2020

The following is a summary of business segment operating performance as measured by contribution margin for the periods indicated (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Pipelines and Transportation
Net revenues:
Affiliate	$	68,444	$	39,304	$	168,285	$	112,694
Third party	3,035		5,281		14,587		16,733
Total pipelines and transportation	71,479		44,585		182,872		129,427

Cost of materials and other	14,342		4,947		31,622		17,871
Operating expenses (excluding depreciation and amortization)	10,749		12,547		31,936		36,109
Segment contribution margin	$	46,388	$	27,091	$	119,314	$	75,447







Capital spending	$	2,552	$	3,103	$	3,424	$	4,345

Wholesale Marketing and Terminalling
Net revenues:
Affiliate (1)	$	26,966	$	27,343	$	121,454	$	78,836
Third party	43,823		65,628		118,980		237,119
Total wholesale marketing and terminalling	70,789		92,971		240,434		315,955

Cost of materials and other	46,350		67,647		174,255		244,842
Operating expenses (excluding depreciation and amortization)	3,481		5,888		9,487		15,711
Segment contribution margin	$	20,958	$	19,436	$	56,692	$	55,402







Capital spending	$	676	$	889	$	3,494	$	1,893

Consolidated
Net revenues:
Affiliate	$	95,410	$	66,647	$	289,739	$	191,530
Third party	46,858		70,909		133,567		253,852
Total Consolidated	142,268		137,556		423,306		445,382

Cost of materials and other	60,692		72,594		205,877		262,713
Operating expenses (excluding depreciation and amortization presented below)	14,230		18,435		41,423		51,820
Contribution margin	$	67,346	$	46,527	176,006		130,849



General and administrative expenses	6,122		5,280		16,973		15,046
Depreciation and amortization	9,459		6,588		24,452		19,801
Other operating income, net	—		(70)		(107)		(95)
Operating income	$	51,765	$	34,729	$	134,688	$	96,097
Capital spending	$	3,228	$	3,992	$	6,918	$	6,238

(1) Affiliate revenue for the wholesale marketing and terminalling segment is presented net of amortization expense pertaining to the Marketing Contract Intangible Acquisition. See Note 3 for additional information.

The following table summarizes the total assets for each segment as of September 30, 2020 and December 31, 2019 (in thousands):


	September 30, 2020		December 31, 2019
Pipelines and transportation	$	804,118	$	537,580
Wholesale marketing and terminalling	153,468		206,867
Total assets	$	957,586	$	744,447

Property, plant and equipment and accumulated depreciation as of September 30, 2020 and depreciation expense by reporting segment for the three and nine months ended September 30, 2020 were as follows (in thousands):


	Pipelines and Transportation		Wholesale Marketing and Terminalling		Consolidated
Property, plant and equipment	$	569,320	$	114,879	$	684,199
Less: accumulated depreciation	(167,079)		(49,619)		(216,698)
Property, plant and equipment, net (1)	$	402,241	$	65,260	$	467,501
Depreciation expense for the three months ended September 30, 2020	$	7,738	$	1,721	$	9,459
Depreciation expense for the nine months ended September 30, 2020	$	19,364	$	5,088	$	24,452

(1) Segment assets data as of September 30, 2020 includes $118.2 million adjustment to re-classify property, plant and equipment between Wholesale Marketing and Terminalling segment and Pipelines and Transportation segment to record a correction that was not reflected in the November 4, 2020 Earnings Release. Such amounts are not considered material to the financial statements and had no impact to the consolidated assets, operating income, segment contribution or net income.