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Segment Data
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Data Segment Data
We aggregate our operating segments into four reportable segments: (i) gathering and processing; (ii) wholesale marketing and terminalling; (iii) storage and transportation; and (iv) investment in pipeline joint ventures. Operations that are not specifically included in the reportable segments are included in Corporate and other segment.
During the fourth quarter 2022, we realigned our reportable segments for financial reporting purposes to reflect changes in the manner in which our chief operating decision maker, or CODM, assesses financial information for decision-making purposes. The change primarily represents reporting the operating results of our pipeline operations and legacy gathering assets and the operating results of the 3 Bear assets within a new reportable segment called gathering and processing. Prior to this change, the pipeline operations and legacy gathering assets were reported as part of pipelines and transportation segment. The former pipelines and transportation reportable segment was renamed to storage and transportation. Additionally, we are also now segregating out certain non-segment specific costs and expenses and, when applicable, immaterial operating segments that may not fit into our existing reportable segments as Corporate and Other activities. Corporate and other primarily includes general and administrative expenses, interest expense and depreciation and amortization. While this reporting change did not change our consolidated results, segment data for previous years has been restated and is consistent with the current year presentation throughout the financial statements and the accompanying notes.
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.
Through September 30, 2022, the CODM believed that contribution margin was a meaningful measure of performance, and it was used by the CODM to analyze the Partnership and stand-alone operating segment performance. During the fourth quarter 2022, the CODM determined that EBITDA is the key performance measure for planning and forecasting purposes and discontinued the use of contribution margin as a measure of performance. Segment EBITDA should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered alternatives to net income (loss), which is the most directly comparable financial measure to EBITDA that is in accordance with U.S. GAAP. Segment EBITDA, as determined and measured by us, should also not be compared to similarly titled measures reported by other companies.
Assets by segment is not a measure used to assess the performance of the Partnership by the CODM and thus is not disclosed.
The following is a summary of business segment operating performance as measured by EBITDA for the periods indicated (in thousands):
Year Ended December 31, 2022
(In thousands)Gathering and ProcessingWholesale Marketing and TerminallingStorage and TransportationInvestments in Pipeline Joint VenturesCorporate and OtherConsolidated
Net revenues:
Affiliate (1)
$185,845 $173,084 $120,482 $— $— $479,411 
Third party119,582 415,800 21,614 — — 556,996 
Total revenue$305,427 $588,884 $142,096 $— $— $1,036,407 
Segment EBITDA$175,250 $83,098 $56,269 $31,683 $(34,363)$311,937 
Depreciation and amortization47,206 6,308 8,591 883 62,988 
Amortization of customer contract intangible— 7,211 — — — 7,211 
Interest expense, net— — — — 82,304 82,304 
Income tax expense382 
Net income$159,052 
Capital spending (2) (3)
$122,594 $1,548 $6,528 $— $— $130,670 
Year Ended December 31, 2021
(In thousands)Gathering and ProcessingWholesale Marketing and TerminallingStorage and TransportationInvestments in Pipeline Joint VenturesCorporate and OtherConsolidated
Net revenues:
Affiliate (1)
$157,182 $147,793 $113,851 $— $— $418,826 
Third party4,670 265,464 11,942 — — 282,076 
Total revenue$161,852 $413,257 $125,793 $— $— $700,902 
Segment EBITDA$126,818 $79,597 $56,929 $24,575 $(22,742)$265,177 
Depreciation and amortization22,394 5,547 8,588 — 6,241 42,770 
Amortization of customer contract intangible— 7,211 — — — 7,211 
Interest expense, net— — — — 50,221 50,221 
Income tax expense153 
Net income$164,822 
Capital spending (2) (3)
$22,262 $3,622 $1,567 $— $— $27,451 
Year ended December 31, 2020
(In thousands)Gathering and ProcessingWholesale Marketing and TerminallingStorage and TransportationInvestments in Pipeline Joint VenturesCorporate and OtherConsolidated
Net revenues:
Affiliate (1)
$139,253 $149,735 $93,678 $— $— $382,666 
Third party1,035 163,156 16,561 — — 180,752 
Total revenue$140,288 $312,891 $110,239 $— $— $563,418 
Segment EBITDA$108,752 $79,602 $51,704 $22,693 $(17,456)$245,295 
Depreciation and amortization18,415 5,520 9,205 — 2,591 35,731 
Amortization of customer contract intangible— 7,211 — — — 7,211 
Interest expense, net— — — — 42,874 42,874 
Income tax expense223
Net income$159,256 
Capital spending (2) (3)
$5,384 $5,962 $4,087 $— $16 $15,449 
(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.
(2) Capital spending for the year ended December 31, 2020, excludes transaction costs capitalized in the amount of $0.3 million that relate to the Trucking Assets Acquisition and $0.7 million that relate to the Midland Gathering Assets Acquisition.
(3) Capital spending for the years ended December 31, 2021 and 2020 excludes contributions to equity method investments amounting to $1.4 million and $12.2 million, respectively. There were no contributions made during the year ended December 31, 2022.