XML 42 R17.htm IDEA: XBRL DOCUMENT
v3.22.2

Segment Data | 6 Months Ended
--- | ---
Jun. 30, 2022
Segment Reporting [Abstract] |
Segment Data | Segment Data We aggregate our operating segments into four reportable segments: (i) pipelines and transportation; (ii) wholesale marketing and terminalling; (iii) 3 Bear operations; and (iv) investment in pipeline joint ventures. Based on the manner in which the Partnership’s Chief Operating Decision Maker (“CODM”) is currently reviewing the financial and operating information and metrics of the business of and for the three months ended June 30, 2022, inclusive of the 3 Bear Acquisition, the acquisition of 3 Bear resulted in a new operating segment as of and for the one month from the Acquisition Date through June 30, 2022, which is deemed to be reportable based on our quantitative assessment. While this new operating segment has certain common characteristics with our pipelines and transportation reportable segment, it also involves new operations (including natural gas gathering, processing and transportation as well as water disposal and recycling) and operates in new geographic location. Additionally, the Acquisition occurred in the last month of the quarter, and integration efforts continue to be in process as of June 30, 2022. For these reasons, the 3 Bear operating segment has been presented as a separate reportable segment as of and for the three months ended June 30, 2022. As we continue to integrate the 3 Bear operations in the coming quarters and refine how we manage those operations in the context of our overall business, it is possible that segment presentation could change. Our operating segments adhere to the accounting policies used for our consolidated financial statements. Our operating segments are managed separately because each segment requires different industry knowledge, technology and marketing strategies. Decisions concerning the allocation of resources and assessment of operating performance are made based on this segmentation. Management measures the operating performance of each of its reportable segments based on segment contribution margin, with the exception of investments in pipeline joint ventures segment, which is measured based on net income. Segment contribution margin is defined as net revenues less cost of materials and other and operating expenses, excluding depreciation and amortization. The following is a summary of business segment operating performance as measured by contribution margin, with the exception of investments in pipeline joint ventures segment, which is measured based on equity method income (loss), for the periods indicated (in thousands):
(in thousands) | Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Pipelines and Transportation |  |  |  |  |  |  |
Net revenues: |  |  |  |  |  |  |
Affiliate | $ | 75,294 |  |  | $ | 65,664 |  |  | $ | 146,316 |  |  | $ | 128,712 |
Third party | 5,312 |  |  | 4,771 |  |  | 10,095 |  |  | 6,698 |
Total pipelines and transportation | 80,606 |  |  | 70,435 |  |  | 156,411 |  |  | 135,410 |
Cost of materials and other | 18,666 |  |  | 14,346 |  |  | 38,268 |  |  | 27,425 |
Operating expenses (excluding depreciation and amortization) | 13,539 |  |  | 10,858 |  |  | 26,497 |  |  | 21,030 |
Segment contribution margin | $ | 48,401 |  |  | $ | 45,231 |  |  | $ | 91,646 |  |  | $ | 86,955 |
Capital spending | $ | 21,493 |  |  | $ | 1,531 |  |  | $ | 29,642 |  |  | $ | 7,376 |
Wholesale Marketing and Terminalling |  |  |  |  |  |  |
Net revenues: |  |  |  |  |  |  |
Affiliate | $ | 46,110 |  |  | $ | 23,058 |  |  | $ | 98,842 |  |  | $ | 56,204 |
Third party | 119,430 |  |  | 74,985 |  |  | 197,474 |  |  | 129,777 |
Total wholesale marketing and terminalling | 165,540 |  |  | 98,043 |  |  | 296,316 |  |  | 185,981 |
Cost of materials and other | 143,920 |  |  | 74,349 |  |  | 250,512 |  |  | 142,441 |
Operating expenses (excluding depreciation and amortization) | 5,296 |  |  | 4,710 |  |  | 10,445 |  |  | 9,349 |
Segment contribution margin | $ | 16,324 |  |  | $ | 18,984 |  |  | $ | 35,359 |  |  | $ | 34,191 |
Capital spending | $ | 122 |  |  | $ | 1,060 |  |  | $ | 1,059 |  |  | $ | 3,014 |
3 Bear Operations |  |  |  |  |  |  |
Net revenues: |  |  |  |  |  |  |
Affiliate | $ | 2,962 |  |  | $ | — |  |  | $ | 2,962 |  |  | $ | — |
Third party | $ | 17,642 |  |  | $ | — |  |  | $ | 17,642 |  |  | $ | — |
Total 3 Bear | 20,604 |  |  | — |  |  | 20,604 |  |  | — |
Cost of materials and other | 13,774 |  |  | — |  |  | 13,774 |  |  | — |
Operating expenses (excluding depreciation and amortization) | 2,154 |  |  | — |  |  | 2,154 |  |  | — |
Segment contribution margin | $ | 4,676 |  |  | $ | — |  |  | $ | 4,676 |  |  | $ | — |
Capital spending | $ | 5,111 |  |  | $ | — |  |  | $ | 5,111 |  |  | $ | — |
Investments in Pipeline Joint Ventures |  |  |  |  |  |  |
Income from equity method investments | $ | 7,073 |  |  | $ | 6,642 |  |  | $ | 14,099 |  |  | $ | 10,691 |
Equity method investments contributions | $ | — |  |  | $ | (14) |  |  | $ | — |  |  | $ | (1,393) |
Consolidated |  |  |  |  |  |  |
Net revenues: |  |  |  |  |  |  |
Affiliate | $ | 124,366 |  |  | $ | 88,722 |  |  | $ | 248,120 |  |  | $ | 184,916 |
Third party | 142,384 |  |  | 79,756 |  |  | 225,211 |  |  | 136,475 |
Total Consolidated | 266,750 |  |  | 168,478 |  |  | 473,331 |  |  | 321,391 |
Cost of materials and other | 176,360 |  |  | 88,695 |  |  | 302,554 |  |  | 169,866 |
Operating expenses (excluding depreciation and amortization presented below) | 20,989 |  |  | 15,568 |  |  | 39,096 |  |  | 30,379 |
Contribution margin | 69,401 |  |  | 64,215 |  |  | 131,681 |  |  | 121,146 |
General and administrative expenses | 13,773 |  |  | 5,990 |  |  | 18,868 |  |  | 10,095 |
Depreciation and amortization | 13,422 |  |  | 9,967 |  |  | 23,757 |  |  | 20,706 |
Other operating expense (income), net | — |  |  | (136) |  |  | 12 |  |  | (219) |
Operating income | 42,206 |  |  | 48,394 |  |  | 89,044 |  |  | 90,564 |
Capital spending and capital contributions to equity method investments | $ | 26,726 |  |  | $ | 2,591 |  |  | $ | 35,812 |  |  | $ | 10,390 |
The following table summarizes the total assets for each segment as of June 30, 2022 and December 31, 2021 (in thousands). Assets for each segment include property, plant and equipment, equity method investments, intangible assets and inventory.
| June 30, 2022 |  | December 31, 2021
Pipelines and transportation | $ | 485,748 |  |  | $ | 452,690 |
Wholesale marketing and terminalling | 192,105 |  |  | 211,723 |
3 Bear operations | 647,531 |  |  | — |
Investments in pipeline joint ventures | 248,675 |  |  | 250,030 |
Other (1) | 35,236 |  |  | 20,628 |
Total assets | 1,609,295 |  |  | $ | 935,071 |
(1) Other includes cash and cash equivalents and related party receivables and other assets which are recorded at the corporate level.
Property, plant and equipment, accumulated depreciation and depreciation expense for the Partnership's reportable segments, excluding the investment in pipeline joint ventures segment, as of and for the three and six months ended June 30, 2022 were as follows (in thousands):
| Pipelines and Transportation |  | Wholesale Marketing and Terminalling |  | 3 Bear Operations |  | Consolidated
Property, plant and equipment | $ | 633,165 |  |  | $ | 120,745 |  |  | $ | 387,912 |  |  | $ | 1,141,822 |
Less: accumulated depreciation | (221,461) |  |  | (65,095) |  |  | (1,427) |  |  | (287,983) |
Property, plant and equipment, net | $ | 411,704 |  |  | $ | 55,650 |  |  | $ | 386,485 |  |  | $ | 853,839 |
Depreciation expense for the three months ended June 30, 2022 | $ | 7,884 |  |  | $ | 2,603 |  |  | $ | 1,427 |  |  | $ | 11,914 |
Depreciation expense for the six months ended June 30, 2022 | $ | 15,821 |  |  | $ | 5,001 |  |  | $ | 1,427 |  |  | $ | 22,249 |
In accordance with ASC 360, Property, Plant & Equipment, we evaluate the realizability of property, plant and equipment as events occur that might indicate potential impairment. There were no indicators of impairment of our property, plant and equipment as of June 30, 2022.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration