SEGMENT INFORMATION | 20. SEGMENT INFORMATION As of December 31, 2020, the Partnership’s reportable segments are: • the Utica Shale, which is served by Summit Utica; • Ohio Gathering, which includes the Partnership’s ownership interest in OGC and OCC; • the Williston Basin, which is served by Polar and Divide, Meadowlark Midstream and Bison Midstream; • the DJ Basin, which is served by Niobrara G&P; • the Permian Basin, which is served by Summit Permian; • the Piceance Basin, which is served by Grand River; • the Barnett Shale, which is served by DFW Midstream; and • the Marcellus Shale, which is served by Mountaineer Midstream. Until March 22, 2019, the Partnership owned Tioga Midstream, a crude oil, produced water and associated natural gas gathering system operating in the Williston Basin. Until December 1, 2019, the Partnership owned certain assets in the Red Rock Gathering system operating in the Piceance Basin. Refer to Note 16 to the consolidated financial statements for details on the sale of Tioga Midstream and on the sale of certain assets in the Red Rock Gathering system. Each of the Partnership’s reportable segments provides midstream services in a specific geographic area. Reportable segments reflect the way in which the Partnership internally report’s the financial information used to make decisions and allocate resources in connection with its operations. The Ohio Gathering reportable segment includes the Partnership’s investment in Ohio Gathering. Income or loss from equity method investees, as reflected on the statements of operations, relates to Ohio Gathering and is recognized and disclosed on a one-month lag see Note 7. For the year ended December 31, 2020, other than the investment activity described in Note 7 , Double E did not have any results of operations given that the Double E Project is currently under development. The Double E Project is expected to be operational in the fourth quarter of 2021. Corporate and Other represents those results that: (i) are not specifically attributable to a reportable segment; (ii) are not individually reportable (such as Double E); or (iii) have not been allocated to a reportable segments for the purpose of evaluating their performance, including certain general and administrative expense items, certain natural gas and crude oil marketing services and transaction costs. Assets by reportable segment follow. December 31, 2020 2019 (in thousands) Assets (1) Utica Shale $ 209,425 $ 206,368 Ohio Gathering 259,888 275,000 Williston Basin 425,873 452,152 DJ Basin 199,920 205,308 Permian Basin 165,765 185,708 Piceance Basin 579,800 631,140 Barnett Shale 336,629 350,638 Marcellus Shale 176,441 184,631 Total reportable segment assets 2,353,741 2,490,945 Corporate and Other 146,076 83,153 Total assets $ 2,499,817 $ 2,574,098 (1) Revenues by reportable segment follow. Year ended December 31, 2020 2019 (In thousands) Revenues: Utica Shale $ 36,509 $ 33,991 Williston Basin 92,695 105,651 DJ Basin 28,070 26,050 Permian Basin 29,533 20,303 Piceance Basin 113,890 133,638 Barnett Shale 54,459 71,802 Marcellus Shale 25,741 24,471 Total reportable segments revenue 380,897 415,906 Corporate and Other 2,576 30,552 Eliminations — (2,930 ) Total revenues $ 383,473 $ 443,528 Counterparties accounting for a significant portion of total revenues were as follows: Year ended December 31, 2020 2019 Percentage of total revenues (1) Counterparty A - Piceance Basin 13 % 11 % Counterparty B - Williston Basin * 10 % Counterparty C - Utica Shale 5 % * Counterparty C - Permian Basin 5 % * Counterparty C - Barnett Shale 1 % * * Less than 10% Depreciation and amortization, including the amortization expense associated with the Partnership’s favorable and unfavorable gas gathering contracts as reported in other revenues, by reportable segment follows. Year ended December 31, 2020 2019 (In thousands) Depreciation and amortization: Utica Shale $ 7,696 $ 7,659 Williston Basin 25,911 19,829 DJ Basin 6,146 3,732 Permian Basin 5,455 4,868 Piceance Basin 45,203 47,018 Barnett Shale (1) 16,112 16,575 Marcellus Shale 9,195 9,141 Total reportable segment depreciation and amortization 115,718 108,822 Corporate and Other 3,352 2,752 Total depreciation and amortization $ 119,070 $ 111,574 (1) Cash paid for capital expenditures by reportable segment follow. Year ended December 31, 2020 2019 (In thousands) Cash paid for capital expenditures: Utica Shale $ 6,957 $ 3,902 Williston Basin 8,767 30,861 DJ Basin 12,829 80,487 Permian Basin 7,014 44,955 Piceance Basin 1,370 1,946 Barnett Shale (1) 1,878 184 Marcellus Shale 700 693 Total reportable segment capital expenditures 39,515 163,028 Corporate and Other 3,613 19,263 Total cash paid for capital expenditures $ 43,128 $ 182,291 (1) For the year ended December 31, 2019, Corporate and Other includes cash paid of $1.6 million for corporate purposes; the remainder represents capital expenditures relating to the Double E Project. The Partnership assesses the performance of its reportable segments based on segment adjusted EBITDA. The Partnership defines segment adjusted EBITDA as total revenues less total costs and expenses; plus (i) other income excluding interest income, (ii) proportional adjusted EBITDA for equity method investees, (iii) depreciation and amortization, (iv) adjustments related to MVC shortfall payments, (v) adjustments related to capital reimbursement activity, (vi) unit-based and noncash compensation, (vii) impairments (vii) other noncash expenses or losses, less other noncash income or gains and (ix) restructuring expenses. Proportional adjusted EBITDA for the Partnership’s equity method investees is defined as the product of (i) total revenues less total expenses, excluding impairments and other noncash income or expense items, and amortization for deferred contract costs; and (ii) ownership interest in Ohio Gathering during the respective period. For the purpose of evaluating segment performance, the Partnership excludes the effect of Corporate and Other revenues and expenses, such as certain general and administrative expenses (including compensation-related expenses and professional services fees), certain natural gas and crude oil marketing services, transaction costs, interest expense and income tax expense or benefit from segment adjusted EBITDA. Segment adjusted EBITDA by reportable segment follows. Year ended December 31, 2020 2019 (In thousands) Reportable segment adjusted EBITDA Utica Shale $ 32,783 $ 29,292 Ohio Gathering 31,056 39,126 Williston Basin 52,060 69,437 DJ Basin 19,449 18,668 Permian Basin 4,426 (879 ) Piceance Basin 88,820 98,765 Barnett Shale 32,093 43,043 Marcellus Shale 22,015 20,051 Total of reportable segments' measures of profit $ 282,702 $ 317,503 A reconciliation of income or loss before income taxes and income or loss from equity method investees to total of reportable segments' measures of profit or loss follows. Year ended December 31, 2020 2019 (In thousands) Reconciliation of income (loss) before income taxes and income (loss) from equity method investees to total of reportable segments' measures of profit: Income (loss) before income taxes and income (loss) from equity method investees $ 177,661 $ (54,644 ) Add: Corporate and Other expense 59,585 44,808 Interest expense 78,894 91,966 Gain on early extinguishment of debt (203,062 ) — Depreciation and amortization (1) 119,070 111,574 Proportional adjusted EBITDA for equity method investees 31,056 39,126 Adjustments related to MVC shortfall payments — 3,476 Adjustments related to capital reimbursement activity (1,395 ) (2,156 ) Unit-based and noncash compensation 8,111 8,171 Gain on asset sales, net (307 ) (1,536 ) Long-lived asset impairment 13,089 60,507 Goodwill impairment — 16,211 Total of reportable segments' measures of profit $ 282,702 $ 317,503 (1) For the years ended December 31, 2020 and 2019, adjustments related to MVC shortfall payments recognize the earnings from MVC shortfall payments ratably over the term of the associated MVC. Contributions in aid of construction are recognized over the remaining term of the respective contract. The Partnership includes adjustments related to capital reimbursement activity in its calculation of segment adjusted EBITDA to account for revenue recognized from contributions in aid of construction. |