v3.25.4
SEGMENTS
 12 Months Ended
Dec. 31, 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 two Permian Basin pipelines that access various points along the U.S. Gulf Coast and Mexico markets, Kinetik NGL Pipelines, Brandywine Pipeline and Delaware Link Pipeline. The current operating pipelines transport 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 expenses), operating expenses and ad valorem expenses. The Pipeline Transportation segment contains all of the Company’s equity method investments, which contribute more than 91% of the Segment’s Adjusted EBITDA. Corporate and Other contains the Company’s executive and administrative functions, including more than 80% of the Company’s general and administrative expenses.
The Company regularly provides management reports to the CODM that include cost of sales, operating expenses, and 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 years ended December 31, 2025, 2024 and 2023:
Midstream LogisticsPipeline Transportation
Corporate and Other(1)
Elimination
Consolidated
For the year ended December 31, 2025
(In thousands)
Revenue$1,743,171 $9,553 $— $— $1,752,724 
Other revenue11,657 8 — — 11,665 
Intersegment revenue(2)
— 25,212 — (25,212)— 
Total segment operating revenue1,754,828 34,773 — (25,212)1,764,389 
Costs of sales (excluding depreciation and amortization expenses)
(785,615)(333)— — (785,948)
Intersegment costs of sales(25,212)— — 25,212 — 
Operating expenses(3)
(297,621)(2,632)— — (300,253)
General and administrative expenses(23,878)(1,122)(105,616)— (130,616)
Proportionate EMI EBITDA— 339,448 — — 339,448 
Other segment items(4)
13,343 — 87,341 — 100,684 
Segment Adjusted EBITDA(5)
$635,845 $370,134 $(18,275)$— $987,704 
Reconciliation of segment profit to income before income taxes
Segment Adjusted EBITDA(5)
$635,845 $370,134 $(18,275)$— $987,704 
Add back:
Other interest income— — 1,510 — 1,510 
Commodity hedging unrealized gain18,871 — — — 18,871 
Gain on sale of equity method investment— 415,409 — — 415,409 
Equity in earnings of unconsolidated affiliates— 226,351 — — 226,351 
Deduct:
Interest expense138 — 233,233 — 233,371 
Depreciation and amortization expenses373,388 9,234 23 — 382,645 
Contract assets amortization6,794 — — — 6,794 
Proportionate EMI EBITDA— 339,448 — — 339,448 
Share-based compensation— — 62,617 — 62,617 
Loss on disposal of assets, net8 — — — 8 
Loss on debt extinguishment
— — 635 — 635 
Contingent liabilities fair value adjustment5,190 — — — 5,190 
Integration costs13,169 — 1,789 — 14,958 
Acquisition / divestiture transaction costs
— — 275 — 275 
Litigation costs
— — 19,708 — 19,708 
Other one-time costs and amortization4,588 — 2,952 — 7,540 
Income (loss) before income taxes$251,441 $663,212 $(337,997)$— $576,656 
Midstream LogisticsPipeline Transportation
Corporate and Other(1)
Elimination
Consolidated
For the year ended December 31, 2024
(In thousands)
Revenue$1,461,898 $9,088 $— $— $1,470,986 
Other revenue11,652 291 — — 11,943 
Intersegment revenue(2)
— 26,099 — (26,099)— 
Total segment operating revenue1,473,550 35,478 — (26,099)1,482,929 
Costs of sales (excluding depreciation and amortization expenses)
(620,617)(1)— (620,618)
Intersegment costs of sales(26,099)— — 26,099 — 
Operating expenses(3)
(217,780)(2,904)— — (220,684)
General and administrative expenses(19,623)(1,689)(112,845)— (134,157)
Proportionate EMI EBITDA— 346,666 — — 346,666 
Other segment items(4)
25,452 — 91,530 — 116,982 
Segment Adjusted EBITDA(5)
$614,883 $377,550 $(21,315)$— $971,118 
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA(5)
$614,883 $377,550 $(21,315)$— $971,118 
Add back:
Other interest income— — 1,988 — 1,988 
Gain on sale of equity method investment— 89,802 — — 89,802 
Equity in earnings of unconsolidated affiliates— 213,191 — — 213,191 
Deduct:
Interest expense81 — 217,154 — 217,235 
Depreciation and amortization expenses314,970 9,204 23 — 324,197 
Contract assets amortization6,621 — — — 6,621 
Proportionate EMI EBITDA— 346,666 — — 346,666 
Share-based compensation— — 76,536 — 76,536 
Loss on disposal of assets, net4,040 — — — 4,040 
Commodity hedging unrealized loss10,788 — — — 10,788 
Loss on debt extinguishment— — 525 — 525 
Contingent liabilities fair value adjustment200 — — — 200 
Integration costs2,110 — 3,716 — 5,826 
Acquisition transaction costs— — 4,096 — 4,096 
Litigation costs
229 — 5,845 — 6,074 
Other one-time costs or amortization4,690 — 1,337 — 6,027 
Income (loss) before income taxes$271,154 $324,673 $(328,559)$— $267,268 
Midstream LogisticsPipeline Transportation
Corporate and Other(1)
EliminationConsolidated
For the year ended December 31, 2023
(In thousands)
Revenue$1,236,304 $3,857 $— $— $1,240,161 
Other revenue13,343 2,908 — — 16,251 
Intersegment revenue(2)
— 1,678 — (1,678)— 
Total segment operating revenue1,249,647 8,443 — (1,678)1,256,412 
Costs of sales (excluding depreciation and amortization expenses)
(514,035)(1,686)— — (515,721)
Intersegment costs of sales(1,678)— — 1,678 — 
Operating expenses(3)
(182,684)(458)— — (183,142)
General and administrative expenses(17,216)(1,265)(79,425)— (97,906)
Proportionate EMI EBITDA— 306,072 — — 306,072 
Other segment items(4)
9,156 — 63,959 — 73,115 
Segment Adjusted EBITDA(5)
$543,190 $311,106 $(15,466)$— $838,830 
Reconciliation of segment profit to income before income taxes
Segment Adjusted EBITDA(5)
$543,190 $311,106 $(15,466)$— $838,830 
Add back:
Other interest income— — 677 — 677 
Warrant valuation adjustment— — 88 — 88 
Commodity hedging unrealized gain4,291 — — — 4,291 
Equity in earnings from unconsolidated affiliates
— 200,015 — — 200,015 
Deduct:
Interest expense47 — 205,807 — 205,854 
Depreciation and amortization expenses275,568 5,395 23 — 280,986 
Contract assets amortization6,620 — — — 6,620 
Proportionate EMI EBITDA— 306,072 — — 306,072 
Share-based compensation— — 55,983 — 55,983 
Loss on disposal of assets, net19,402 — — — 19,402 
Loss on debt extinguishment— — 1,876 — 1,876 
Integration costs59 — 956 — 1,015 
Acquisition transaction costs33 — 615 — 648 
Litigation costs
1,154 — 2,978 — 4,132 
Other one-time costs or amortization4,842 — 2,927 — 7,769 
Income (loss) before income taxes$239,756 $199,654 $(285,866)$— $153,544 
(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/divestiture costs, litigation costs and other one-time costs or amortization.
(5)Segment adjusted EBITDA is a non-GAAP measure; please see Key Performance Metrics in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Annual Report, for a definition and reconciliation to the GAAP measure.
The following tables present supplemental segment information that are not included in the segment profit measurements above for the years ended December 31, 2025, 2024 and 2023:
Midstream Logistics Pipeline Transportation
Corporate and Other(1)
Consolidated
For the year ended December 31, 2025
(In thousands)
Income tax expense
$— $— $50,728 $50,728 
Total capital expenditures(2)(3)
528,482 1,189 — 529,671 
Midstream Logistics Pipeline Transportation
Corporate and Other(1)
Consolidated
For the year ended December 31, 2024
(In thousands)
Income tax expense
$— $— $23,035 $23,035 
Total capital expenditures(2)(3)
273,783 2,080 10 275,873 
Midstream Logistics Pipeline Transportation
Corporate and Other(1)
Consolidated
For the year ended December 31, 2023
(In thousands)
Income tax benefit$— $— $(232,908)$(232,908)
Total capital expenditures(2)(3)
234,879 94,675 — 329,554 
December 31,December 31,
20252024
Total assets:(In thousands)
Midstream Logistics(4)
$4,714,723 $4,326,954 
Pipeline Transportation(5)
2,153,280 2,270,403 
Segment total assets6,868,003 6,597,357 
Corporate and Other
227,608 217,580 
Total assets$7,095,611 $6,814,937 
(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.
(2)Excludes capital assets acquired in the Company’s business combinations that are included in the Midstream Logistic segment. See Note 3—Business Combinations in the Notes to our Consolidated Financial Statements in this Annual Report for additional information.
(3)Excludes contributions, acquisition and divestiture of equity interest in the Company’s EMIs that are included in Pipeline Transportation segment. See Note 7—Equity Method Investments in the Notes to our Consolidated Financial Statements in this Annual Report for additional information.
(4)Midstream Logistics segment included goodwill of $5.1 million as of December 31, 2025 and 2024.
(5)Pipeline Transportation segment included investment in unconsolidated affiliates of $2.01 billion and $2.12 billion as of December 31, 2025 and 2024, respectively.