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Segment Data | 6 Months Ended
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Jun. 30, 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 ("CODM") uses financial information to make key operating decisions and assess performance. The changes primarily represent 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 the pipelines and transportation segment. The remaining operations of the former pipelines and transportation reportable segment was renamed to storage and transportation. Unallocated corporate costs, including general and administrative expenses, interest expense and depreciation and amortization, are now presented in corporate and other. Additionally, the CODM determined that Segment 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. EBITDA is an important measure used by management to evaluate the financial performance of our core operations. EBITDA is not a GAAP measure, but the components of EBITDA are computed using amounts that are determined in accordance with GAAP. A reconciliation of EBITDA to Net Income is included in the tables below. We define EBITDA as net income (loss) 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. 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 June 30, 2023
(In thousands) |  | Gathering and Processing |  | Wholesale Marketing and Terminalling |  | Storage and Transportation |  | Investments in Pipeline Joint Ventures |  | Corporate and Other |  | Consolidated
Net revenues: |  |  |  |  |  |  |  |  |  |  |  |
Affiliate |  | $ | 49,182 |  |  | $ | 52,076 |  |  | $ | 31,735 |  |  | $ | — |  |  | $ | — |  |  | $ | 132,993 |
Third party |  | 44,055 |  |  | 66,751 |  |  | 3,112 |  |  | — |  |  | — |  |  | 113,918 |
Total revenue |  | $ | 93,237 |  |  | $ | 118,827 |  |  | $ | 34,847 |  |  | $ | — |  |  | $ | — |  |  | $ | 246,911 |
Segment EBITDA |  | $ | 52,663 |  |  | $ | 27,983 |  |  | $ | 14,978 |  |  | $ | 7,285 |  |  | $ | (10,129) |  |  | $ | 92,780 |
Depreciation and amortization |  | 18,801 |  |  | 1,880 |  |  | 2,304 |  |  | — |  |  | 742 |  |  | 23,727 |
Amortization of customer contract intangible |  | — |  |  | 1,802 |  |  | — |  |  | — |  |  | — |  |  | 1,802 |
Interest expense, net |  | — |  |  | — |  |  | — |  |  | — |  |  | 35,099 |  |  | 35,099 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  | 256 |
Net income |  |  |  |  |  |  |  |  |  |  |  | $ | 31,896 |
Capital spending |  | $ | 18,877 |  |  | $ | (2,712) |  |  | $ | 3,215 |  |  | $ | — |  |  | $ | — |  |  | $ | 19,380 |
|  | Three Months Ended June 30, 2022
(In thousands) |  | Gathering and Processing |  | Wholesale Marketing and Terminalling |  | Storage and Transportation |  | Investments in Pipeline Joint Ventures |  | Corporate and Other |  | Consolidated
Net revenues: |  |  |  |  |  |  |  |  |  |  |  |
Affiliate |  | $ | 45,605 |  |  | $ | 46,110 |  |  | $ | 32,651 |  |  | $ | — |  |  | $ | — |  |  | $ | 124,366 |
Third party |  | 19,221 |  |  | 119,430 |  |  | 3,733 |  |  | — |  |  | — |  |  | 142,384 |
Total revenue |  | $ | 64,826 |  |  | $ | 165,540 |  |  | $ | 36,384 |  |  | $ | — |  |  | $ | — |  |  | $ | 266,750 |
Segment EBITDA |  | $ | 38,497 |  |  | $ | 18,807 |  |  | $ | 14,529 |  |  | $ | 7,073 |  |  | $ | (14,400) |  |  | $ | 64,506 |
Depreciation and amortization |  | 8,640 |  |  | 1,668 |  |  | 2,180 |  |  | — |  |  | 934 |  |  | 13,422 |
Amortization of customer contract intangible |  | — |  |  | 1,803 |  |  | — |  |  | — |  |  | — |  |  | 1,803 |
Interest expense, net |  | — |  |  | — |  |  | — |  |  | — |  |  | 16,812 |  |  | 16,812 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  | 305 |
Net income |  |  |  |  |  |  |  |  |  |  |  | $ | 32,164 |
Capital spending |  | $ | 26,630 |  |  | $ | 96 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 26,726 |
|  | Six Months Ended June 30, 2023
(In thousands) |  | Gathering and Processing |  | Wholesale Marketing and Terminalling |  | Storage and Transportation |  | Investments in Pipeline Joint Ventures |  | Corporate and Other |  | Consolidated
Net revenues: |  |  |  |  |  |  |  |  |  |  |  |
Affiliate |  | $ | 101,943 |  |  | $ | 85,827 |  |  | $ | 70,222 |  |  | $ | — |  |  | $ | — |  |  | $ | 257,992 |
Third party |  | 83,726 |  |  | 145,309 |  |  | 3,409 |  |  | — |  |  | — |  |  | 232,444 |
Total revenue |  | $ | 185,669 |  |  | $ | 231,136 |  |  | $ | 73,631 |  |  | $ | — |  |  | $ | — |  |  | $ | 490,436 |
Segment EBITDA |  | $ | 108,108 |  |  | $ | 49,937 |  |  | $ | 28,400 |  |  | $ | 13,601 |  |  | $ | (14,108) |  |  | $ | 185,938 |
Depreciation and amortization |  | 35,248 |  |  | 3,569 |  |  | 4,406 |  |  | — |  |  | 1,609 |  |  | 44,832 |
Amortization of customer contract intangible |  | — |  |  | 3,605 |  |  | — |  |  | — |  |  | — |  |  | 3,605 |
Interest expense, net |  | — |  |  | — |  |  | — |  |  | — |  |  | 67,680 |  |  | 67,680 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  | 558 |
Net income |  |  |  |  |  |  |  |  |  |  |  | $ | 69,263 |
Capital spending |  | $ | 51,666 |  |  | $ | 404 |  |  | $ | 3,411 |  |  | $ | — |  |  | $ | — |  |  | $ | 55,481 |
|  | Six Months Ended June 30, 2022
(In thousands) |  | Gathering and Processing |  | Wholesale Marketing and Terminalling |  | Storage and Transportation |  | Investments in Pipeline Joint Ventures |  | Corporate and Other |  | Consolidated
Net revenues: |  |  |  |  |  |  |  |  |  |  |  |
Affiliate |  | $ | 85,938 |  |  | $ | 98,842 |  |  | $ | 63,340 |  |  | $ | — |  |  | $ | — |  |  | $ | 248,120 |
Third party |  | 20,932 |  |  | 197,474 |  |  | 6,805 |  |  | — |  |  | — |  |  | 225,211 |
Total revenue |  | $ | 106,870 |  |  | $ | 296,316 |  |  | $ | 70,145 |  |  | $ | — |  |  | $ | — |  |  | $ | 473,331 |
Segment EBITDA |  | $ | 70,578 |  |  | $ | 39,541 |  |  | $ | 25,637 |  |  | $ | 14,099 |  |  | $ | (19,346) |  |  | $ | 130,509 |
Depreciation and amortization |  | 14,481 |  |  | 3,046 |  |  | 4,276 |  |  | — |  |  | 1,954 |  |  | 23,757 |
Amortization of customer contract intangible |  | — |  |  | 3,606 |  |  | — |  |  | — |  |  | — |  |  | 3,606 |
Interest expense, net |  | — |  |  | — |  |  | — |  |  | — |  |  | 31,062 |  |  | 31,062 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  | 406 |
Net income |  |  |  |  |  |  |  |  |  |  |  | $ | 71,678 |
Capital spending |  | $ | 35,485 |  |  | $ | 327 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 35,812 |

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- 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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