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Property, Plant and Equipment | 12 Months Ended
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Dec. 31, 2025
Property, Plant and Equipment [Abstract] |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment The historical costs of our property, plant and equipment and related balances were as follows at the dates indicated:
| Estimated Useful Life in Years |  | December 31,
|  | 2025 |  | 2024
Plants, pipelines and facilities (1)(5) | 3-45 |  | $ | 66,498 |  |  | $ | 60,716 |
Underground and other storage facilities (2)(6) | 5-40 |  | 4,871 |  |  | 4,704 |
Transportation equipment (3) | 3-10 |  | 294 |  |  | 272 |
Marine vessels (4) | 15-30 |  | 970 |  |  | 949 |
Land |  |  | 439 |  |  | 424 |
Construction in progress |  |  | 2,400 |  |  | 4,138 |
Subtotal |  |  | 75,472 |  |  | 71,203 |
Less accumulated depreciation |  |  | 24,338 |  |  | 22,330 |
Subtotal property, plant and equipment, net |  |  | 51,134 |  |  | 48,873 |
Capitalized major maintenance costs for reaction-based plants, net of accumulated amortization (7) |  |  | 225 |  |  | 189 |
Property, plant and equipment, net |  |  | $ | 51,359 |  |  | $ | 49,062 |
(1)Plants, pipelines and facilities include distillation-based and reaction-based plants; NGL, natural gas, crude oil and petrochemical and refined products pipelines; terminal loading and unloading facilities; buildings; office furniture and equipment; laboratory and shop equipment and related assets. (2)Underground and other storage facilities include underground product storage caverns; above ground storage tanks; water wells and related assets. (3)Transportation equipment includes tractor-trailer tank trucks and other vehicles and similar assets used in our operations. (4)Marine vessels include tow boats, barges and related equipment used in our marine transportation business. (5)In general, the estimated useful lives of major assets within this category are: distillation-based and reaction-based plants, 20-35 years; pipelines and related equipment, 5-45 years; terminal facilities, 10-35 years; buildings, 20-40 years; office furniture and equipment, 3-20 years; and laboratory and shop equipment, 5-35 years. (6)In general, the estimated useful lives of assets within this category are: underground storage facilities, 5-35 years; storage tanks, 10-40 years; and water wells, 5-35 years. (7)For reaction-based plants, we use the deferral method when accounting for major maintenance activities. Under the deferral method, major maintenance costs are capitalized and amortized over the period until the next major overhaul project. On a weighted-average basis, the expected remaining amortization period for these costs is 2.5 years. The following table summarizes our depreciation expense and capitalized interest amounts for the years indicated:
|  |  | For the Year Ended December 31,
|  |  |  |  | 2025 |  | 2024 |  | 2023
Depreciation expense (1) |  |  |  |  | $ | 2,087 |  |  | $ | 1,974 |  |  | $ | 1,860 |
Capitalized interest (2) |  |  |  |  | 182 |  |  | 121 |  |  | 106 |
(1)Depreciation expense is a component of “Third party and other costs” within “Costs and expenses” as presented on our Statements of Consolidated Operations. (2)Capitalized interest is a component of “Interest expense” as presented on our Statements of Consolidated Operations. Sale of Undivided Joint Interest in Bahia NGL Pipeline In December 2025, we completed the sale of a 40% undivided joint interest in our Bahia NGL Pipeline to ExxonMobil for approximately $655 million in cash. This divestiture will enhance the utilization of our Bahia NGL Pipeline and integrated value chain by connecting our Delaware Basin natural gas processing facilities and one of the largest producers in the basin to our downstream infrastructure, while simultaneously enabling us to optimize our capital spending program. As a result of this sale, we proportionately consolidate our 60% undivided joint interest in the Bahia NGL Pipeline, and the related operating results are reported within our NGL Pipelines & Services business segment. No gain or loss was recorded on the disposal as the transaction price equaled the carrying value of the assets transferred to ExxonMobil. The cash consideration is payable in two installments, with $60 million received in December 2025 and the remaining approximately $595 million collected in January 2026. The amount due from ExxonMobil at December 31, 2025 is reflected as a component of “Prepaid and other current assets” on our Consolidated Balance Sheets. Asset Retirement Obligations We record AROs in connection with legal requirements to perform specified retirement activities under contractual arrangements and/or governmental regulations. Our contractual AROs primarily result from right-of-way agreements associated with our pipeline operations and property leases associated with our plant sites. In addition, we record AROs in connection with governmental regulations associated with the abandonment or retirement of above-ground brine storage pits and certain marine vessels. We also record AROs in connection with regulatory requirements associated with the renovation or demolition of certain assets containing hazardous substances such as asbestos. We typically fund our AROs using cash flow from operations. Property, plant and equipment at December 31, 2025 and 2024 includes $141 million and $134 million, respectively, of asset retirement costs capitalized as an increase in the associated long-lived asset. The following table presents information regarding our AROs for the years indicated:
| For the Year Ended December 31,
| 2025 |  | 2024 |  | 2023
ARO liability beginning balance | $ | 265 |  |  | $ | 225 |  |  | $ | 234 |
Liabilities incurred (1) | 10 |  |  | 1 |  |  | 5 |
Revisions in estimated cash flows (2) | 1 |  |  | 30 |  |  | (12) |
Liabilities settled (3) | (6) |  |  | (4) |  |  | (13) |
Accretion expense (4) | 20 |  |  | 13 |  |  | 11 |
ARO liability ending balance | $ | 290 |  |  | $ | 265 |  |  | $ | 225 |
(1)Represents the initial recognition of estimated ARO liabilities during the period. (2)Represents subsequent adjustments to estimated ARO liabilities during the period. (3)Represents cash payments to settle ARO liabilities during the period. (4)Represents net change in ARO liability balance attributable to the passage of time and other adjustments, including true-up amounts associated with revised closure estimates. Of the $290 million total ARO liability recorded at December 31, 2025, $5 million was reflected as a current liability and $285 million as a long-term liability. The following table presents our forecast of ARO-related accretion expense for the years indicated:
2026 |  | 2027 |  | 2028 |  | 2029 |  | 2030
$ | 17 |  |  | $ | 18 |  |  | $ | 19 |  |  | $ | 20 |  |  | $ | 21 |
Impairments of Property, Plant and Equipment The following table presents our non-cash asset impairment charges involving property, plant and equipment by business segment for the years indicated:
| For the Year Ended December 31,
| 2025 |  | 2024 |  | 2023
NGL Pipelines & Services | $ | 14 |  |  | $ | 28 |  |  | $ | 12 |
Crude Oil Pipelines & Services | 4 |  |  | – |  |  | 1 |
Natural Gas Pipelines & Services | 11 |  |  | 7 |  |  | 5 |
Petrochemical & Refined Products Services | 16 |  |  | 15 |  |  | 2 |
Total impairment charges for property, plant and equipment | $ | 45 |  |  | $ | 50 |  |  | $ | 20 |
Our impairment charges for the years ended December 31, 2025, 2024 and 2023 are attributable to the complete write-off of assets that are no longer expected to be used or constructed.

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