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Commitments and Contingent Liabilities | 12 Months Ended
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Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingent Liabilities | Note 17. Commitments and Contingent Liabilities Litigation As part of our normal business activities, we may be named as defendants in legal proceedings, including those arising from regulatory and environmental matters. Although we are insured against various risks to the extent we believe it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to fully indemnify us against losses arising from future legal proceedings. We will vigorously defend the Partnership in litigation matters. Management has regular quarterly litigation reviews, including updates from legal counsel, to assess the possible need for accounting recognition and disclosure of these contingencies. We accrue an undiscounted liability for those contingencies where the loss is probable and the amount can be reasonably estimated. If a range of probable loss amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum amount in the range is accrued. We do not record a contingent liability when the likelihood of loss is probable but the amount cannot be reasonably estimated or when the likelihood of loss is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and the impact would be material to our consolidated financial statements, we disclose the nature of the contingency and, where feasible, an estimate of the possible loss or range of loss. Based on a consideration of all relevant known facts and circumstances, we do not believe that the ultimate outcome of any currently pending litigation directed against us will have a material impact on our consolidated financial statements either individually at the claim level or in the aggregate. There were no accruals for litigation contingencies at December 31, 2025 and 2024, respectively. We classify our accruals for litigation contingencies in our Consolidated Balance Sheets as a component of “Other current liabilities” or “Other long-term liabilities” based on management’s estimate regarding the timing of settlement. Our evaluation of litigation contingencies is based on the facts and circumstances of each case and predicting the outcome of these matters involves uncertainties. In the event the assumptions we use to evaluate these matters change in future periods or new information becomes available, we may be required to record additional accruals. In an effort to mitigate expenses associated with litigation, we may settle legal proceedings out of court. Commitments Under Equity Compensation Plans of EPCO In accordance with our agreements with EPCO, we reimburse EPCO for our share of its compensation expense attributable to employees who perform management, administrative and operating functions for us. See Notes 13 and 15 for additional information regarding our accounting for equity-based awards and related party information, respectively. Contractual Obligations The following table summarizes our various contractual obligations at December 31, 2025. A description of each type of contractual obligation follows:
|  | Payment or Settlement due by Period
Contractual Obligations |  | Total |  | 2026 |  | 2027 |  | 2028 |  | 2029 |  | 2030 |  | Thereafter
Scheduled maturities of debt obligations |  | $ | 34,707 |  |  | $ | 1,625 |  |  | $ | 1,575 |  |  | $ | 1,800 |  |  | $ | 1,250 |  |  | $ | 1,250 |  |  | $ | 27,207 |
Estimated cash interest payments |  | $ | 28,309 |  |  | $ | 1,578 |  |  | $ | 1,509 |  |  | $ | 1,477 |  |  | $ | 1,409 |  |  | $ | 1,354 |  |  | $ | 20,982 |
Operating lease obligations (1) |  | $ | 576 |  |  | $ | 111 |  |  | $ | 73 |  |  | $ | 52 |  |  | $ | 39 |  |  | $ | 36 |  |  | $ | 265 |
Finance lease obligations (2) |  | $ | 18 |  |  | $ | 4 |  |  | $ | 4 |  |  | $ | 5 |  |  | $ | 3 |  |  | $ | 1 |  |  | $ | 1 |
Purchase obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product purchase commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Estimated payment obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |
NGLs |  | $ | 2,836 |  |  | $ | 1,186 |  |  | $ | 1,186 |  |  | $ | 170 |  |  | $ | 131 |  |  | $ | 131 |  |  | $ | 32 |
Crude oil |  | $ | 4,296 |  |  | $ | 1,226 |  |  | $ | 1,226 |  |  | $ | 965 |  |  | $ | 622 |  |  | $ | 257 |  |  | $ | – |
Other |  | $ | 43 |  |  | $ | 7 |  |  | $ | 8 |  |  | $ | 8 |  |  | $ | 8 |  |  | $ | 7 |  |  | $ | 5 |
Service payment commitments |  | $ | 271 |  |  | $ | 41 |  |  | $ | 38 |  |  | $ | 33 |  |  | $ | 25 |  |  | $ | 24 |  |  | $ | 110 |
Capital expenditure commitments |  | $ | 51 |  |  | $ | 36 |  |  | $ | 15 |  |  | $ | – |  |  | $ | – |  |  | $ | – |  |  | $ | – |
(1)As of December 31, 2025, the difference between the total payments for operating lease obligations and the carrying value of our operating lease liabilities, which represents the present value of future operating lease payments, was $105 million. (2)As of December 31, 2025, the difference between the total payments for finance lease obligations and the carrying value of our finance lease liabilities, which represents the present value of future finance lease payments, was $2 million. Scheduled Maturities of Debt We have long-term and short-term payment obligations under debt agreements. Amounts shown in the preceding table represent our scheduled future maturities of debt principal for the years indicated. See Note 7 for additional information regarding our consolidated debt obligations. Estimated Cash Interest Payments Our estimated cash payments for interest are based on the principal amount of our consolidated debt obligations outstanding at December 31, 2025, the contractually scheduled maturities of such balances, and the applicable interest rates. Our estimated cash payments for interest are influenced by the long-term maturities of our $2.3 billion in junior subordinated notes (due June 2067 through February 2078). The estimated cash payments assume that (i) the junior subordinated notes are not repaid prior to their respective maturity dates and (ii) the amount of interest paid on the junior subordinated notes is based on either (a) the current fixed interest rate charged or (b) the weighted-average variable rate paid in 2025, as applicable, for each note through the respective maturity date. See Note 7 for information regarding fixed and weighted-average variable interest rates charged in 2025. Operating and Finance Lease Obligations We lease certain property, plant and equipment under noncancelable and cancelable leases. Amounts shown in the preceding table represent minimum cash lease payment obligations under our leases with terms in excess of one year. Our significant operating lease agreements consist of (i) land held pursuant to property leases, (ii) the lease of underground storage caverns for natural gas, NGLs and ethylene, (iii) the lease of compressors and transportation equipment used in our operations and (iv) office space leased from affiliates of EPCO. These lease agreements have terms that range from 5 to 30 years. The agreements to lease office space from affiliates of EPCO and those relating to underground NGL storage caverns we lease from a third party include renewal options that could extend these contracts for up to an additional 20 years. The remainder of our significant operating lease agreements do not provide for additional renewal terms. Our finance lease agreements consist of leases of certain transportation equipment used in our trucking operations that include options to purchase the leased equipment, which we are reasonably certain to exercise. These lease agreements have terms that range from 4 to 6 years. The following table presents information regarding operating and finance leases where we are the lessee at December 31, 2025:
Asset Category | ROU Asset Carrying Value (1) |  | Lease Liability Carrying Value (2) |  | Weighted- Average Remaining Term |  | Weighted- Average Discount Rate (3)
Operating leases |  |  |  |  |  |  |
Storage and pipeline facilities | $ | 247 |  |  | $ | 246 |  |  | 10 years |  | 4.8 | %
Transportation equipment | 32 |  |  | 33 |  |  | 3 years |  | 4.8 | %
Office and warehouse space | 158 |  |  | 192 |  |  | 11 years |  | 3.3 | %
Total operating leases | 437 |  |  | 471 |  |  |  |  |
Finance leases |  |  |  |  |  |  |
Transportation equipment | 16 |  |  | 16 |  |  | 4 years |  | 4.8 | %
Total finance leases | 16 |  |  | 16 |  |  |  |  |
Total leases | $ | 453 |  |  | $ | 487 |  |  |  |  |
(1)ROU asset amounts are a component of “Other assets” on our Consolidated Balance Sheet. (2)At December 31, 2025, operating lease liabilities of $94 million and $377 million were included within “Other current liabilities” and “Other long-term liabilities,” respectively. Additionally, at December 31, 2025, finance lease liabilities of $3 million and $13 million were included within “Other current liabilities” and “Other long-term liabilities,” respectively. (3)The discount rate for each category of assets represents the weighted average of either (i) the implicit rate applicable to the underlying leases (where determinable) or (ii) our incremental borrowing rate adjusted for collateralization (if the implicit rate is not determinable). In general, the discount rates are based on either information available at the lease commencement date or January 1, 2019 for leases existing at the adoption date for ASC 842. The following table disaggregates our total operating and finance lease expense for the years indicated:
|  |  | For the Year Ended December 31,
|  |  |  |  | 2025 |  | 2024 |  | 2023
Long-term leases: |  |  |  |  |  |  |  |  |
Fixed operating lease expense: |  |  |  |  |  |  |  |  |
Non-cash lease expense (amortization of ROU assets) |  |  |  |  | $ | 109 |  |  | $ | 95 |  |  | $ | 72 |
Related accretion expense on lease liability balances |  |  |  |  | 17 |  |  | 17 |  |  | 14 |
Total fixed operating lease expense |  |  |  |  | 126 |  |  | 112 |  |  | 86 |
Fixed finance lease expense: |  |  |  |  |  |  |  |  |
Amortization of ROU assets (1) |  |  |  |  | 2 |  |  | – |  | * | – |
Interest on finance lease liabilities (1) |  |  |  |  | 1 |  |  | – |  | * | – |
Total fixed finance lease expense (1) |  |  |  |  | 3 |  |  | – |  | * | – |
Variable lease expense |  |  |  |  | 18 |  |  | 17 |  |  | 13 |
Total long-term lease expense |  |  |  |  | 147 |  |  | 129 |  |  | 99 |
Short-term leases |  |  |  |  | 163 |  |  | 121 |  |  | 111 |
Total lease expense |  |  |  |  | $ | 310 |  |  | $ | 250 |  |  | $ | 210 |
(1)For the year ended December 31, 2024, total fixed finance lease expense, which include amortization of finance lease ROU assets and interest on finance lease liabilities, was less than $1 million. *Amount is negligible. Fixed operating lease expense for storage, pipeline, transportation equipment and warehouse are charged to operating costs and expenses, while those for our office buildings are charged to general and administrative costs. Fixed finance lease expense includes interest on the finance lease liabilities and amortization of the ROU assets, which are charged to interest expense and operating costs and expenses, respectively. Variable lease payments and short-term lease expense are expensed as incurred. Cash paid for operating lease liabilities recorded on our balance sheet was $129 million, $110 million and $87 million for the years ended December 31, 2025, 2024 and 2023, respectively. Cash paid for finance leases was $3 million for the year ended December 31, 2025. There were no cash payments for finance lease liabilities during the year ended December 31, 2024. We do not have any significant operating leases where we are the lessor. Our operating lease income for the years ended December 31, 2025, 2024 and 2023 was $16 million, $15 million and $16 million, respectively. We do not have any direct financing or sales-type leases. Purchase Obligations We define purchase obligations as agreements with remaining terms in excess of one year to purchase goods or services that are enforceable and legally binding (i.e., unconditional) on us that specify all significant terms, including (i) fixed or minimum quantities to be purchased, (ii) fixed, minimum or variable price provisions and (iii) the approximate timing of the transactions. We classify our unconditional purchase obligations into the following categories: •Product purchase commitments – We have long-term product purchase obligations for natural gas, NGLs, crude oil, and petrochemicals and refined products with third party suppliers. The prices that we are obligated to pay under these contracts approximate market prices at the time we take delivery of the volumes. The preceding table presents our estimated future payment obligations under these contracts based on the contractual price in each agreement at December 31, 2025 applied to all future volume commitments. Actual future payment obligations may vary depending on prices at the time of delivery. •Service payment commitments – We have long-term commitments to pay service providers, including those attributable to obligations under firm pipeline transportation contracts. Payment obligations vary by contract, but generally represent a price per unit of volume multiplied by a firm transportation volume commitment. •We have long-term payment obligations relating to our capital expenditures, including our share of the capital expenditures of unconsolidated affiliates. These commitments represent unconditional payment obligations for services to be rendered or products to be delivered in connection with capital projects. Other Long-Term Liabilities The following table summarizes the components of “Other long-term liabilities” as presented on our Consolidated Balance Sheets at the dates indicated:
| December 31,
| 2025 |  | 2024
Noncurrent portion of AROs (see Note 4) | $ | 285 |  |  | $ | 259 |
Deferred revenues – non-current portion (see Note 9) | 261 |  |  | 284 |
Operating lease liability – non-current portion | 377 |  |  | 366 |
Derivative liabilities | 16 |  |  | 24 |
Other | 45 |  |  | 17 |
Total | $ | 984 |  |  | $ | 950 |

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