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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,
2022202120222021
Pipelines and Transportation
Net revenues:
Affiliate$75,294 $65,664 $146,316 $128,712 
Third party5,312 4,771 10,095 6,698 
Total pipelines and transportation 80,606 70,435 156,411 135,410 
Cost of materials and other18,666 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 party119,430 74,985 197,474 129,777 
Total wholesale marketing and terminalling165,540 98,043 296,316 185,981 
Cost of materials and other143,920 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 Bear20,604 — 20,604 — 
Cost of materials and other13,774 — 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 party142,384 79,756 225,211 136,475 
Total Consolidated266,750 168,478 473,331 321,391 
Cost of materials and other176,360 88,695 302,554 169,866 
Operating expenses (excluding depreciation and amortization presented below)20,989 15,568 39,096 30,379 
Contribution margin69,401 64,215 131,681 121,146 
General and administrative expenses13,773 5,990 18,868 10,095 
Depreciation and amortization13,422 9,967 23,757 20,706 
Other operating expense (income), net— (136)12 (219)
Operating income42,206 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, 2022December 31, 2021
Pipelines and transportation $485,748 $452,690 
Wholesale marketing and terminalling192,105 211,723 
3 Bear operations647,531 — 
Investments in pipeline joint ventures248,675 250,030 
Other (1)
35,236 20,628 
     Total assets1,609,295 $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 TransportationWholesale Marketing and Terminalling3 Bear OperationsConsolidated
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.