v3.25.3
SEGMENTS
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
Midstream Logistics and Pipeline Transportation are our operating segments representing the Company’s segments for which discrete financial information are available and utilized on a regular basis by our CODM to make key operating decisions, assess performance and allocate resources. These segments represent strategic business units with differing products and services. No operating segments have been aggregated to form the reportable segments. Therefore, our two operating segments represent our reportable segments. The activities of each of our reportable segments from which the Company earns revenues and incurs expenses are described below:
•Midstream Logistics: The Midstream Logistics segment operates under three revenue streams, 1) gas gathering and processing, 2) crude oil gathering, stabilization and storage services and 3) produced water gathering and disposal.
•Pipeline Transportation: The Pipeline Transportation segment consists of equity investment interests in three Permian Basin pipelines that access various points along the U.S. Gulf Coast, Kinetik NGL Pipeline and Delaware Link Pipeline. The current operating pipelines transport crude oil, natural gas and NGLs.
Our Chief Executive Officer, who is the CODM, uses segment net income or loss including noncontrolling interest adjusted for interest, taxes, depreciation and amortization, gain or loss on disposal of assets and debt extinguishment, the proportionate EBITDA from our EMI pipelines, equity income and gain from sale of investments recorded using the equity method, share-based compensation expense, noncash increases and decreases related to commodity hedging activities, fair value adjustments to contingent liabilities, integration and transaction costs and extraordinary losses and unusual or non-recurring charges (“Segment Adjusted EBITDA”) to assess performance of each operating segment. For both segments, the CODM uses Segment Adjusted EBITDA to allocate resources. The CODM considers budget-to-actual and forecast-to-actual variances on a monthly basis for both measures when making decisions about allocating capital and personnel to the segments.
The Midstream Logistics segment accounts for more than 99% of the Company’s operating revenues, cost of sales (excluding depreciation and amortization), operating expenses and ad valorem expenses. The Pipeline Transportation segment contains all of the Company’s equity method investments, which contribute more than 92% of the segment’s adjusted EBITDA. Corporate and Other activities contain the Company’s executive and administrative functions, including more than 78% of the Company’s general and administrative expenses and all of the Company’s debt service costs.
The Company regularly provides management reports to the CODM that include cost of sales, operating, general and administrative expenses related to the segments, which are all considered to be significant.
The following tables present the Segment Adjusted EBITDA of the Company’s reportable segments and reconciliations of the segment profits to consolidated income before income tax expenses for the three and nine months ended September 30, 2025 and 2024:
Midstream LogisticsPipeline Transportation
Corporate and Other(1)
Elimination
Consolidated
For the three months ended September 30, 2025
(In thousands)
Revenue$458,621 $2,325 $— $— $460,946 
Other revenue3,0212 — — 3,023 
Intersegment revenue(2)
— 5,793 — (5,793)— 
Total segment operating revenue461,642 8,120 — (5,793)463,969 
Costs of sales (excluding depreciation and amortization expense)
(236,001)610 — — (235,391)
Intersegment costs of sales
(5,793)— — 5,793 — 
Operating expenses(3)
(82,486)(750)— — (83,236)
General and administrative expenses(6,610)(241)(23,245)— (30,096)
Proportionate EMI EBITDA— 87,715 — — 87,715 
Other segment items(4)
20,606 — 19,067 — 39,673 
Segment Adjusted EBITDA(5)
$151,358 $95,454 $(4,178)$— $242,634 
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA(5)
$151,358 $95,454 $(4,178)$— $242,634 
Add back:
Other interest income— — 166 — 166 
Equity in earnings of unconsolidated affiliates— 58,289 — — 58,289 
Deduct:
Interest expense37 — 61,684 — 61,721 
Depreciation and amortization expenses93,095 2,308 6 — 95,409 
Contract assets amortization
1,744 — — — 1,744 
Proportionate EMI EBITDA— 87,715 — — 87,715 
Share-based compensation
— — 14,229 — 14,229 
Loss on disposal of assets, net
50 — — — 50 
Commodity hedging unrealized loss
6,485 — — — 6,485 
Contingent liabilities fair value adjustment5,700 — — — 5,700 
Integration costs6,552 — 98 — 6,650 
Acquisition / divestiture transaction costs
— — 812 — 812 
Other one-time costs or amortization(12)— 3,928 — 3,916 
Income (loss) before income taxes
$37,707 $63,720 $(84,769)$— $16,658 
Midstream LogisticsPipeline Transportation
Corporate and Other(1)
EliminationConsolidated
For the three months ended September 30, 2024
(In thousands)
Revenue$391,331 $2,192 $— $— $393,523 
Other revenue2,837 2 — — 2,839 
Intersegment revenue(2)
— 6,748 — (6,748)— 
Total segment operating revenue394,168 8,942 — (6,748)396,362 
Costs of sales (excluding depreciation and amortization expense)(144,648)62 — — (144,586)
Intersegment costs of sales
(6,748)— — 6,748 — 
Operating expenses(3)
(61,010)(690)— — (61,700)
General and administrative expenses(6,542)(409)(22,668)— (29,619)
Proportionate EMI EBITDA— 88,229 — — 88,229 
Other segment items(4)
(1,597)— 18,594 — 16,997 
Segment Adjusted EBITDA(5)
$173,623 $96,134 $(4,074)$— $265,683 
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA(5)
$173,623 $96,134 $(4,074)$— $265,683 
Add back:
Other interest income— — 572 — 572 
Gain on sale of equity method investment— 29,953 — — 29,953 
Commodity hedging unrealized gain8,817 — — — 8,817 
Equity in earnings of unconsolidated affiliates— 53,244 — — 53,244 
Deduct:
Interest expense2,666 — 63,363 — 66,029 
Depreciation and amortization expenses85,273 2,305 5 — 87,583 
Contract assets amortization1,655 — — — 1,655 
Proportionate EMI EBITDA— 88,229 — — 88,229 
Share-based compensation— — 15,171 — 15,171 
Contingent liabilities fair value adjustment1,400 — — — 1,400 
Integration costs1,208 — 1,332 2,540 
Acquisition transaction costs— — 31 — 31 
Other one-time costs or amortization1,657 — 2,060 — 3,717 
Income (loss) before income taxes$88,581 $88,797 $(85,464)$— $91,914 
Midstream LogisticsPipeline Transportation
Corporate and Other(1)
Elimination
Consolidated
For the nine months ended September 30, 2025
(In thousands)
Revenue$1,318,459 $7,162 $— $— $1,325,621 
Other revenue8,3436 — — 8,349 
Intersegment revenue(2)
— 18,271 — (18,271)— 
Total segment operating revenue1,326,802 25,439 — (18,271)1,333,970 
Costs of sales (excluding depreciation and amortization expense)
(615,624)172 — — (615,452)
Intersegment costs of sales
(18,271)— — 18,271 — 
Operating expenses(3)
(226,283)(1,951)— — (228,234)
General and administrative expenses(18,731)(901)(72,300)— (91,932)
Proportionate EMI EBITDA— 263,345 — — 263,345 
Other segment items(4)
14,870 — 59,017 — 73,887 
Segment Adjusted EBITDA(5)
$462,763 $286,104 $(13,283)$— $735,584 
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA(5)
$462,763 $286,104 $(13,283)$— $735,584 
Add back:
Other interest income— — 1,274 — 1,274 
Gain on disposal of assets, net
15 — — — 15 
Commodity hedging unrealized gain
13,131 — — — 13,131 
Equity in earnings of unconsolidated affiliates— 174,472 — — 174,472 
Deduct:
Interest expense97 — 173,852 — 173,949 
Depreciation and amortization expenses274,903 6,924 18 — 281,845 
Contract assets amortization
5,054 — — — 5,054 
Proportionate EMI EBITDA— 263,345 — — 263,345 
Share-based compensation
— — 44,577 — 44,577 
Loss on debt extinguishment— — 635 — 635 
Contingent liabilities fair value adjustment5,700 — — — 5,700 
Integration costs10,999 — 1,622 — 12,621 
Acquisition / divestiture transaction costs
— — 812 — 812 
Other one-time costs or amortization3,702 — 12,006 — 15,708 
Income (loss) before income taxes
$175,454 $190,307 $(245,531)$— $120,230 
Midstream LogisticsPipeline Transportation
Corporate and Other(1)
Elimination
Consolidated
For the nine months ended September 30, 2024
(In thousands)
Revenue$1,082,236 $6,566 $— $— $1,088,802 
Other revenue8,122289 — — 8,411 
Intersegment revenue(2)
— 19,288 — (19,288)— 
Total segment operating revenue1,090,358 26,143 — (19,288)1,097,213 
Costs of sales (excluding depreciation and amortization expense)
(444,767)(19)— — (444,786)
Intersegment costs of sales
(19,288)— — 19,288 — 
Operating expenses(3)
(159,455)(2,223)— — (161,678)
General and administrative expenses(13,766)(1,263)(79,817)— (94,846)
Proportionate EMI EBITDA— 262,553 — — 262,553 
Other segment items(4)
11,083 — 64,105 — 75,188 
Segment Adjusted EBITDA(5)
$464,165 $285,191 $(15,712)$— $733,644 
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA(5)
$464,165 $285,191 $(15,712)$— $733,644 
Add back:
Other interest income— — 1,459 — 1,459 
Commodity hedging unrealized gain1,935 — — — 1,935 
Gain on sale of equity method investment— 89,837 — — 89,837 
Equity in earnings of unconsolidated affiliates— 169,668 — — 169,668 
Deduct:
Interest expense5,273 — 162,272 — 167,545 
Depreciation and amortization expenses229,336 6,897 17 — 236,250 
Contract assets amortization
4,965 — — — 4,965 
Proportionate EMI EBITDA— 262,553 — — 262,553 
Share-based compensation
— — 52,868 — 52,868 
Loss on disposal of assets, net
4,090 — — — 4,090 
Loss on debt extinguishment— — 525 — 525 
Contingent liabilities fair value adjustment1,400 — — — 1,400 
Integration costs1,792 — 3,299 — 5,091 
Acquisition transaction costs— — 3,538 — 3,538 
Other one-time costs or amortization4,048 — 4,400 — 8,448 
Income (loss) before income taxes
$215,196 $275,246 $(241,172)$— $249,270 
(1)Corporate and Other represents those results that: (i) are not specifically attributable to an operating segment; (ii) are not individually reportable or (iii) have not been allocated to a reportable segment for the purpose of evaluating their performance, including certain general and administrative expense items. Items included here to reconcile operating segments’ profit and loss with the Company’s consolidated profit and loss.
(2)The Company accounts for intersegment sales at market prices, while it accounts for asset transfers at book value. Intersegment revenue is eliminated at consolidation.
(3)Operating expenses includes ad valorem taxes.
(4)Other segment items include certain other income items, share-based compensation, adjustments related to amortization of contract costs, fair value adjustments to contingent liabilities, commodity hedging unrealized gain or loss, integration costs, acquisition costs and other one-time costs or amortization.
(5)Segment Adjusted EBITDA is a non-GAAP measure; please see Key Performance Metrics in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report on Form 10-Q, for a definition and reconciliation to the GAAP measure.
The following tables present other segment expenses that are not included in the segment profit measurements above for the three and nine months ended September 30, 2025 and 2024:
Midstream Logistics Pipeline Transportation
Corporate and Other (1)
Consolidated
For the three months ended September 30, 2025
(In thousands)
Income tax expenses$— $— $1,109 $1,109 
Capital expenditure(3)(4)
$171,824 $2 $— $171,826 
For the three months ended September 30, 2024
Income tax expenses$— $— $8,260 $8,260 
Capital expenditure(3)(4)
$60,053 $3,373 $— $63,426 
Midstream Logistics Pipeline Transportation
Corporate and Other (1)
Consolidated
For the nine months ended September 30, 2025
(In thousands)
Income tax expenses$— $— $11,003 $11,003 
Capital expenditure(3)(4)
$388,988 $245 $— $389,233 
For the nine months ended September 30, 2024
Income tax expenses$— $— $21,261 $21,261 
Capital expenditure(3)(4)
$158,171 $5,378 $— $163,549 
September 30,December 31,
20252024
Total assets:
(In thousands)
Midstream Logistics$4,706,271 $4,326,954 
Pipeline Transportation(2)
2,231,968 2,270,403 
Segment total assets6,938,239 6,597,357 
Corporate and other(1)
263,834 217,580 
Total assets$7,202,073 $6,814,937 
(1)Corporate and Other activities represents those results that: (i) are not specifically attributable to an operating segment; (ii) are not individually reportable or (iii) have not been allocated to a reportable segment for the purpose of evaluating their performance, including certain general and administrative expense items. Items included here to reconcile operating segments profit and loss with the Company’s consolidated profit and loss.
(2)The Pipeline Transportation segment includes investments in unconsolidated affiliates of $2.09 billion and $2.12 billion as of September 30, 2025 and December 31, 2024, respectively.
(3)Excludes capital assets acquired in business combinations and included in the Midstream Logistic segment. See Note 2—Business Combinations in the Notes to our Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for additional information.
(4)Excludes contributions or acquisitions made in the Company’s EMIs that are included in the Pipeline Transportation segment. See Note 6—Equity Method Investments in the Notes to our Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for additional information.