XML 35 R15.htm IDEA: XBRL DOCUMENT v3.23.1
Segment Data
 3 Months Ended
Mar. 31, 2023
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 Delaware Gathering operations 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. 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. Additionally, 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. 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.
Segment EBITDA should not be considered a substitute for results prepared in accordance with 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 GAAP. Segment EBITDA, as determined and measured by us, should also not be compared to similarly titled measures reported by other companies.
The disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The CODM evaluates performance based upon EBITDA. We define EBITDA for any period as net income before net interest expense, income tax expense, depreciation and amortization expense, including amortization of customer contract intangible assets, which is included as a component of net revenues in our accompanying condensed consolidated statements of income. Segment EBITDA should not be considered a substitute for results prepared in accordance with 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 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):
Three Months Ended March 31, 2023
(In thousands)Gathering and ProcessingWholesale Marketing and TerminallingStorage and TransportationInvestments in Pipeline Joint VenturesCorporate and OtherConsolidated
Net revenues:
Affiliate (1)
$52,761 $33,751 $38,487 $— $— $124,999 
Third party39,671 78,558 297 — — 118,526 
Total revenue$92,432 $112,309 $38,784 $— $— $243,525 
Segment EBITDA$55,445 $21,954 $13,422 $6,316 $(3,979)$93,158 
Depreciation and amortization16,447 1,689 2,102 — 867 21,105 
Amortization of customer contract intangible— 1,803 — — — 1,803 
Interest expense, net— — — — 32,581 32,581 
Income tax expense302 
Net income$37,367 
Capital spending$32,789 $3,116 $196 $— $— $36,101 
Three Months Ended March 31, 2022
(In thousands)Gathering and ProcessingWholesale Marketing and TerminallingStorage and TransportationInvestments in Pipeline Joint VenturesCorporate and OtherConsolidated
Net revenues:
Affiliate (1)
$40,334 $52,731 $30,689 $— $— $123,754 
Third party1,710 78,045 3,072 — — 82,827 
Total revenue$42,044 $130,776 $33,761 $— $— $206,581 
Segment EBITDA$32,081 $20,734 $11,108 $7,026 $(4,946)$66,003 
Depreciation and amortization5,841 1,378 2,096 — 1,020 10,335 
Amortization of customer contract intangible— 1,803 — — — 1,803 
Interest expense, net— — — — 14,250 14,250 
Income tax expense101 
Net income$39,514 
Capital spending$8,855 $231 $— $— $— $9,086 
(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.