Discontinued Operations

9 Months Ended

Sep. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

In September 2025, indirect subsidiaries of XPLR completed the sale of their ownership interests in Meade Pipeline Co, LLC (Meade), which owned an investment in natural gas pipeline assets in Pennsylvania (Meade pipeline investment). XPLR received total cash consideration of approximately $1.1 billion. XPLR used a portion of the proceeds from the sale to pay off related project-level indebtedness of approximately $823 million and to purchase the remaining outstanding Class B membership interests in XPLR Pipelines of $219 million. XPLR also received proceeds of approximately $64 million relating to the settlement of interest rate contracts upon paying off the related project-level indebtedness. XPLR recognized a gain on disposal of the Meade pipeline investment of approximately $1 million (less than $1 million after tax), which is reflected in income from discontinued operations in its condensed consolidated statement of income for the three and nine months ended September 30, 2025. XPLR incurred approximately $6 million and $7 million in disposal-related costs during the three and nine months ended September 30, 2025, respectively, which are reflected as operations and maintenance in the condensed consolidated statement of income.

XPLR's results of operations for the Meade pipeline investment are presented as income (loss) from discontinued operations on its condensed consolidated statements of income (loss) for the three and nine months ended September 30, 2025 and 2024.

The table below presents the financial results of the Meade pipeline investment and interest on related project-level indebtedness included in income from discontinued operations:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024

	(millions)










OTHER INCOME (DEDUCTIONS)
Interest expense	$	(16)	$	(41)	$	(56)	$	(43)
Equity in earnings of equity method investees	11		18		11		54

Total other income (deductions) – net	(5)		(23)		(45)		11
INCOME (LOSS) BEFORE INCOME TAXES	(5)		(23)		(45)		11
INCOME TAX BENEFIT	(2)		(4)		(8)		(1)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS(a)	$	(3)	$	(19)	$	(37)	$	12

_____________________________

(a) Includes net income (loss) attributable to noncontrolling interests of less than $1 million and approximately $(8) million for the three months ended September 30, 2025 and 2024, respectively, and $(16) million and $16 million for the nine months ended September 30, 2025 and 2024, respectively. Income tax expense (benefit) attributable to noncontrolling interests is less than $1 million for all periods presented.

The noncurrent assets held for sale as of December 31, 2024 reflect XPLR's investment in equity method investees relating to the Meade pipeline investment of approximately $1,153 million.

XPLR has elected not to separately disclose discontinued operations on its condensed consolidated statement of cash flows. The table below presents cash flows from discontinued operations for major captions on the condensed consolidated statement of cash flows related to the Meade pipeline investment:


	Nine Months Ended September 30,
	2025		2024
	(millions)
Change in value of derivative contracts	$	30	$	20
Deferred income taxes	$	(8)	$	(1)
Equity in earnings of equity method investees, net of distributions received	$	69	$	26

XPLR Infrastructure, LP 10-Q