•Permian Segment. The Permian segment includes our natural gas gathering, processing, and transmission activities and our crude oil operations in the Midland and Delaware Basins in West Texas and Eastern New Mexico;

•North Texas Segment. The North Texas segment includes our natural gas gathering, processing, fractionation, and transmission activities in North Texas; and Wellhead Treatment

•Corporate Segment. The Corporate segment includes our unconsolidated affiliate investments in the Cedar Cove JV in Oklahoma, GCF in South Texas, and the Matterhorn JV in West Texas, as well as our corporate assets and expenses.

Our revenues and adjusted gross margins are generated from eight primary sources:

The following customers individually represented greater than 10% of our consolidated revenues during the years ended December 31, 2022 and 2021. No other customers represented greater than 10% of our consolidated revenues during the periods presented.

purchases and sales concurrently, thereby establishing the net margin we will receive for each crude oil and condensate transaction.

Recent Developments Affecting Industry Conditions and Our Business

For additional discussion regarding these factors, see "Item 1A-Risk Factors-Business and Industry Risks."

See "Item 8. Financial Statements and Supplementary Data-Note 3" for more information regarding our acquisitions.

Organic Growth, CCS Business, and Joint Venture Agreement

GCF Operations. In January of 2023, we began the process to restart the GCF assets and expect operations to begin in 2024. We will make capital contributions during 2023 associated with the restart of these assets.

See "Item 8. Financial Statements and Supplementary Data-Note 7" for more information regarding the issuance of new senior unsecured notes by us, repurchases of ENLK's senior unsecured notes, the amendment of the AR Facility, and the Revolving Credit Facility.

Repurchase of Series C Preferred Units. In October 2022, we repurchased 19,000 Series C Preferred Units for total consideration of $15.2 million. The repurchase price represented 80% of the preferred units' par value.

See "Item 8. Financial Statements and Supplementary Data-Note 9" for more information regarding the Series B Preferred Units and the Series C Preferred Units.

Cost of sales, exclusive of operating expenses and depreciation and amortization

The following table reconciles net income to adjusted EBITDA (in millions):

Costs associated with the relocation of processing facilities (1) 43.8

Non-controlling interest share of adjusted EBITDA from joint ventures (3)

Free Cash Flow After Distributions

The following table reconciles net cash provided by operating activities to adjusted EBITDA and free cash flow after distributions (in millions):

Distributions from unconsolidated affiliate investment in excess of earnings

Costs associated with the relocation of processing facilities (4)

Changes in operating assets and liabilities which (provided) used cash: Accounts receivable, accrued revenues, inventories, and other

Accounts payable, accrued product purchases, and other accrued liabilities

Non-controlling interest share of adjusted EBITDA from joint ventures (6)

Costs associated with the relocation of processing facilities (4) (43.8)

The tables below set forth certain financial and operating data for the periods indicated. We evaluate the performance of our consolidated operations by focusing on adjusted gross margin, while we evaluate the performance of our operating segments based on segment profit and adjusted gross margin, as reflected in the tables below (in millions, except volumes):

Year Ended December 31, 2022 Compared to Year Ended December 31, 2021

•Adjusted gross margin in the Permian segment increased $274.5 million, which was primarily driven by:

•Louisiana Segment. Gross margin was $217.8 million for the year ended December 31, 2022 compared to $183.9 million for the year ended December 31, 2021, an increase of $33.9 million primarily due to the following:

•Adjusted gross margin in the Louisiana segment increased $66.4 million, resulting from:

•Depreciation and amortization in the Louisiana segment increased $15.5 million primarily due to changes in estimated useful lives of certain non-core assets.

•Oklahoma Segment. Gross margin was $185.9 million for the year ended December 31, 2022 compared to $123.3 million for the year ended December 31, 2021, an increase of $62.6 million primarily due to the following:

•Adjusted gross margin in the Oklahoma segment increased $71.0 million, resulting from:

•North Texas Segment. Gross margin was $175.8 million for the year ended December 31, 2022 compared to $136.6 million for the year ended December 31, 2021, an increase of $39.2 million primarily due to the following:

•Corporate Segment. Gross margin was negative $5.5 million for the year ended December 31, 2022 compared to negative $8.0 million for the year ended December 31, 2021. Corporate gross margin consists of depreciation and amortization of corporate assets.

Amortization of debt issuance costs and net discount of senior unsecured notes

Loss from Unconsolidated Affiliate Investments. Loss from unconsolidated affiliate investments was $5.6 million for the year ended December 31, 2022 compared to $11.5 million for the year ended December 31, 2021, a reduction in loss of $5.9

Valuation and Impairment of Long-Lived Assets

The increase to operating cash flows was partially offset by an increase to general and administrative expenses, excluding unit-based compensation, of $11.4 million. For more information, see "Results of Operations."

Payment of installment payable for Amarillo Rattler Acquisition (2) (10.0)

Conversion of unit-based awards for common units, net of units withheld for taxes

As of December 31, 2022, the following table summarizes our expected capital requirements for 2023 (in millions):

$ 420 Operating expenses associated with the relocation of processing facilities, net to ENLC (2)

Off-Balance Sheet Arrangements. We had no off-balance sheet arrangements as of December 31, 2022 and 2021.

Total Contractual Cash Obligations. A summary of our total contractual cash obligations as of December 31, 2022 is as follows (in millions):

Our contractual cash obligations for 2023 are expected to be funded from cash flows generated from our operations.

Senior Unsecured Notes. As of December 31, 2022, we had $4.0 billion in aggregate principal amount of outstanding unsecured senior notes maturing from 2024 to 2047 and there were no meaningful near-term senior unsecured note maturities.

See "Item 8. Financial Statements and Supplementary Data-Note 7" for more information on our outstanding debt. Credit Risk

See "Item 8. Financial Statements and Supplementary Data-Note 15."

We have reviewed recently issued accounting pronouncements that became effective during the year ended December 31, 2022 and have determined that none had a material impact to our consolidated financial statements.

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