Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.22.2.2
Property and Equipment
9 Months Ended
Sep. 30, 2022
Property and Equipment  
Property and Equipment

(6) Property and Equipment

(a)

Summary of Property and Equipment

Property and equipment, net consisted of the following items:

(Unaudited)

Estimated

December 31,

September 30,

(in thousands)

    

Useful Lives

    

2021

2022

Land

    

n/a

    

$

23,369

    

26,682

Gathering systems and facilities

40-50 years (1)

2,817,918

3,052,459

Permanent buried pipelines and equipment

7-20 years

582,481

602,343

Surface pipelines and equipment

1-7 years

54,542

67,520

Heavy trucks and equipment

3-5 years

5,157

5,157

Above ground storage tanks

5-10 years

2,946

2,953

Construction-in-progress

n/a

 

174,271

114,582

Total property and equipment

3,660,684

3,871,696

Less accumulated depreciation

(265,938)

(363,688)

Property and equipment, net

$

3,394,746

3,508,008

(1) Gathering systems and facilities are recognized as a single-leased asset with no residual value.

(b)

Subsequent Event

On October 25, 2022, the Company acquired certain Marcellus gas gathering and compression assets from Crestwood Equity Partners LP (NYSE: CEQP) for $205 million in cash, before closing adjustments, which was funded by borrowings under the Company’s Credit Facility (as defined in Note 7─Long-Term Debt). These assets include 72 miles of dry gas gathering pipelines and nine compressor stations with approximately 700 MMcf/d of compression capacity.