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Segment Data
 6 Months Ended
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 ProcessingWholesale Marketing and TerminallingStorage and TransportationInvestments in Pipeline Joint VenturesCorporate and OtherConsolidated
Net revenues:
Affiliate$49,182 $52,076 $31,735 $— $— $132,993 
Third party44,055 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 amortization18,801 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 expense256 
Net income$31,896 
Capital spending$18,877 $(2,712)$3,215 $— $— $19,380 
Three Months Ended June 30, 2022
(In thousands)Gathering and ProcessingWholesale Marketing and TerminallingStorage and TransportationInvestments in Pipeline Joint VenturesCorporate and OtherConsolidated
Net revenues:
Affiliate$45,605 $46,110 $32,651 $— $— $124,366 
Third party19,221 119,430 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 amortization8,640 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 expense305 
Net income$32,164 
Capital spending$26,630 $96 $— $— $— $26,726 
Six Months Ended June 30, 2023
(In thousands)Gathering and ProcessingWholesale Marketing and TerminallingStorage and TransportationInvestments in Pipeline Joint VenturesCorporate and OtherConsolidated
Net revenues:
Affiliate$101,943 $85,827 $70,222 $— $— $257,992 
Third party83,726 145,309 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 amortization35,248 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 expense558 
Net income$69,263 
Capital spending$51,666 $404 $3,411 $— $— $55,481 
Six Months Ended June 30, 2022
(In thousands)Gathering and ProcessingWholesale Marketing and TerminallingStorage and TransportationInvestments in Pipeline Joint VenturesCorporate and OtherConsolidated
Net revenues:
Affiliate$85,938 $98,842 $63,340 $— $— $248,120 
Third party20,932 197,474 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 amortization14,481 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 expense406 
Net income$71,678 
Capital spending$35,485 $327 $— $— $— $35,812