| Property and Equipment |
(6) Property and Equipment
(a) |
Summary of Property and Equipment |
Property and equipment, net consisted of the following items:
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(Unaudited) |
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Estimated |
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December 31, |
|
September 30, |
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(in thousands) |
|
Useful Lives |
|
2021 |
|
2022 |
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Land |
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n/a |
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$ |
23,369 |
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|
26,682 |
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Gathering systems and facilities |
|
40-50 years (1) |
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|
2,817,918 |
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|
3,052,459 |
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Permanent buried pipelines and equipment |
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7-20 years |
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|
582,481 |
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|
602,343 |
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Surface pipelines and equipment |
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1-7 years |
|
|
54,542 |
|
|
67,520 |
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Heavy trucks and equipment |
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3-5 years |
|
|
5,157 |
|
|
5,157 |
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Above ground storage tanks |
|
5-10 years |
|
|
2,946 |
|
|
2,953 |
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Construction-in-progress |
|
n/a |
|
|
174,271 |
|
|
114,582 |
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Total property and equipment |
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|
|
|
3,660,684 |
|
|
3,871,696 |
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Less accumulated depreciation |
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|
|
|
(265,938) |
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|
(363,688) |
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Property and equipment, net |
|
|
|
$ |
3,394,746 |
|
|
3,508,008 |
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| (1) |
Gathering systems and facilities are recognized as a single-leased asset with no residual value.
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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.
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