v3.19.2

Operating Segments (Notes) | 6 Months Ended
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Jun. 30, 2019
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] |
Operating Segments | Operating Segments Our revenues are derived from three operating segments: Terminalling and Transportation, Gathering and Processing, and Wholesale. We evaluate the performance of our segments based primarily on segment operating income and net earnings before interest, income taxes, depreciation and amortization expenses (“EBITDA”). For the purposes of our operating segment disclosure, we present operating income as it is the most comparable measure to the amounts presented in our condensed statements of consolidated operations. Segment operating income includes those revenues and expenses that are directly attributable to management of the respective segment. Certain general and administrative expenses and interest and financing costs are excluded from segment operating income as they are not directly attributable to a specific operating segment. Our Terminalling and Transportation segment consists of pipeline systems, including regulated common carrier refined products pipeline systems and other pipelines, which transport products and crude oil primarily from Marathon’s refineries to nearby facilities, as well as crude oil and refined products terminals and storage facilities, marine terminals, stand-alone asphalt terminals as well as a 50% interest in PNAC, rail-car unloading facilities, an asphalt trucking operation and a petroleum coke handling and storage facility. Our Gathering and Processing segment consists of crude oil, natural gas, NGLs and produced water gathering systems in the Bakken Shale/Williston Basin area of North Dakota and Montana, the Green River Basin, Uinta Basin, and Vermillion Basin in the states of Utah, Colorado and Wyoming, the Delaware Basin in the Permian Basin area of West Texas and Southern New Mexico, and in the San Juan Basin in the Four Corners area of Northwestern New Mexico. It also consists of the Great Northern Midstream and Fryburg pipelines, crude trucking operations and gas processing and fractionation complexes. Our Wholesale segment includes the operations of several bulk petroleum distribution plants and a fleet of refined product delivery trucks that distribute commercial wholesale petroleum products primarily in Arizona, Colorado, Nevada, New Mexico and Texas. The refined product trucking business delivers a significant portion of the volumes sold by our Wholesale segment. Segment Information (in millions)
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 (a) |  | 2019 |  | 2018 (a)
Revenues |  |  |  |  |  |  |
Terminalling and Transportation: |  |  |  |  |  |  |
Terminalling | $ | 248 |  |  | $ | 209 |  |  | $ | 493 |  |  | $ | 408 |
Pipeline transportation | 47 |  |  | 40 |  |  | 93 |  |  | 71 |
Other revenues | 2 |  |  | 1 |  |  | 4 |  |  | 3 |
Total Terminalling and Transportation | 297 |  |  | 250 |  |  | 590 |  |  | 482 |
Gathering and Processing: |  |  |  |  |  |  |
NGL sales | 94 |  |  | 95 |  |  | 216 |  |  | 199 |
Gas gathering and processing | 75 |  |  | 82 |  |  | 145 |  |  | 167 |
Crude oil and water gathering | 79 |  |  | 80 |  |  | 176 |  |  | 155 |
Pass-thru and other | 36 |  |  | 44 |  |  | 68 |  |  | 79 |
Total Gathering and Processing | 284 |  |  | 301 |  |  | 605 |  |  | 600 |
Wholesale: |  |  |  |  |  |  |
Fuel sales | 17 |  |  | 15 |  |  | 29 |  |  | 24 |
Other wholesale | 6 |  |  | 10 |  |  | 16 |  |  | 18 |
Total Wholesale | 23 |  |  | 25 |  |  | 45 |  |  | 42 |
Intersegment wholesale revenues | (3 | ) |  | (7 | ) |  | (9 | ) |  | (9 | )
Total Revenues | $ | 601 |  |  | $ | 569 |  |  | $ | 1,231 |  |  | $ | 1,115 |
Segment Operating Income |  |  |  |  |  |  |
Terminalling and Transportation | $ | 146 |  |  | $ | 107 |  |  | $ | 298 |  |  | $ | 211 |
Gathering and Processing | 59 |  |  | 69 |  |  | 122 |  |  | 146 |
Wholesale | 12 |  |  | 11 |  |  | 17 |  |  | 15 |
Total Segment Operating Income | 217 |  |  | 187 |  |  | 437 |  |  | 372 |
Unallocated general and administrative expenses | (10 | ) |  | (7 | ) |  | (19 | ) |  | (15 | )
Operating Income | 207 |  |  | 180 |  |  | 418 |  |  | 357 |
Interest and financing costs, net | (63 | ) |  | (60 | ) |  | (124 | ) |  | (115 | )
Equity in earnings of equity method investments | 9 |  |  | 10 |  |  | 16 |  |  | 18 |
Other income, net | 7 |  |  | 2 |  |  | 7 |  |  | 3 |
Net Earnings | $ | 160 |  |  | $ | 132 |  |  | $ | 317 |  |  | $ | 263 |
(a) | Adjusted to include the historical results of the Predecessors. See Note 1 for further discussion.
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 (a) |  | 2019 |  | 2018 (a)
Depreciation and Amortization Expenses |  |  |  |  |  |  |
Terminalling and Transportation | $ | 38 |  |  | $ | 37 |  |  | $ | 74 |  |  | $ | 70 |
Gathering and Processing | 64 |  |  | 54 |  |  | 126 |  |  | 107 |
Wholesale | 2 |  |  | 2 |  |  | 5 |  |  | 5 |
Total Depreciation and Amortization Expenses | $ | 104 |  |  | $ | 93 |  |  | $ | 205 |  |  | $ | 182 |
Capital Expenditures |  |  |  |  |  |  |
Terminalling and Transportation | $ | 26 |  |  | $ | 33 |  |  | $ | 51 |  |  | $ | 79 |
Gathering and Processing | 110 |  |  | 148 |  |  | 207 |  |  | 258 |
Wholesale | — |  |  | — |  |  | — |  |  | 1 |
Total Capital Expenditures | $ | 136 |  |  | $ | 181 |  |  | $ | 258 |  |  | $ | 338 |
(a) Adjusted to include the historical results of the Predecessors. See Note 1 for further discussion.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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