XML 61 R44.htm IDEA: XBRL DOCUMENT v3.25.4
Hedging Activities and Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedges, Assets [Abstract]  
Schedule of Hedging Instruments Under the FASB's Derivative and Hedging Guidance
The following table summarizes our portfolio of commodity derivative instruments outstanding at December 31, 2025 (volume measures as noted):
Volume (1)Accounting
Treatment
Derivative Purpose
Current (2)
Long-Term (2)
Derivatives designated as hedging instruments:
Natural gas processing:
Forecasted sales of natural gas (Bcf)45.318.0Cash flow hedge
Forecasted sales of NGLs (MMBbls)0.9
n/a
Cash flow hedge
Octane enhancement:
Forecasted sales of octane enhancement products (MMBbls)2.30.2Cash flow hedge
Natural gas marketing:
Natural gas storage inventory management activities (Bcf)1.8n/aFair value hedge
NGL marketing:
Forecasted purchases of NGLs and related hydrocarbon products (MMBbls)208.316.9Cash flow hedge
Forecasted sales of NGLs and related hydrocarbon products (MMBbls)212.927.0Cash flow hedge
Refined products marketing:
Forecasted purchases of refined products (MMBbls)3.0n/aCash flow hedge
Forecasted sales of refined products (MMBbls)6.10.1Cash flow hedge
Crude oil marketing:
Forecasted purchases of crude oil (MMBbls)19.57.3Cash flow hedge
Forecasted sales of crude oil (MMBbls)28.114.1Cash flow hedge
Petrochemical marketing:
Forecasted sales of petrochemical products (MMBbls)0.3n/aCash flow hedge
Commercial energy:
Forecasted purchases of power related to asset operations (terawatt hours (“TWh”))1.00.3Cash flow hedge
Derivatives not designated as hedging instruments:
Natural gas risk management activities (Bcf) (3)39.4
n/a
Mark-to-market
NGL risk management activities (MMBbls) (3)58.36.4Mark-to-market
Refined products risk management activities (MMBbls) (3)7.8n/aMark-to-market
Crude oil risk management activities (MMBbls) (3)4.6n/aMark-to-market
(1)Volume for derivatives designated as hedging instruments reflects the total amount of volumes hedged whereas volume for derivatives not designated as hedging instruments reflects the absolute value of derivative notional volumes.
(2)The maximum term for derivatives designated as cash flow hedges, derivatives designated as fair value hedges and derivatives not designated as hedging instruments is March 2029, February 2026 and December 2027, respectively.
(3)Reflects the use of derivative instruments to manage risks associated with our transportation, processing and storage assets.
Schedule of Derivative Assets and Liabilities Balance Sheet
The following table provides a balance sheet overview of our derivative assets and liabilities at the dates indicated:
Asset DerivativesLiability Derivatives
December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Balance
Sheet
Location
Fair
Value
Balance
Sheet
Location
Fair
Value
Balance
Sheet
Location
Fair
Value
Balance
Sheet
Location
Fair
Value
Derivatives designated as hedging instruments
Commodity derivativesCurrent
assets
$403 Current
assets
$210 Current
liabilities
$312 Current
liabilities
$178 
Commodity derivativesOther assets26 Other assets22 Other liabilities13 Other liabilities
Total commodity derivatives429 232 325 182 
Total derivatives designated as hedging instruments$429 $232 $325 $182 
Derivatives not designated as hedging instruments
Commodity derivativesCurrent
assets
$31 Current
assets
$324 Current
liabilities
$35 Current
liabilities
$293 
Commodity derivativesOther assets– Other assets19 Other liabilitiesOther liabilities20 
Total commodity derivatives31 343 38 313 
Total derivatives not designated as hedging instruments$31 $343 $38 $313 
Schedule of Offsetting Financial Assets The following tables present our derivative instruments subject to such arrangements at the dates indicated:
Offsetting of Financial Assets and Derivative Assets
Gross
Amounts of
Recognized
Assets
Gross
Amounts
Offset in the
Balance Sheet
Amounts
of Assets
Presented
in the
Balance Sheet
Gross Amounts Not Offset
 in the Balance Sheet
Amounts That
Would Have
Been Presented
On Net Basis
Financial
Instruments
Cash
Collateral
Received
Cash
Collateral
Paid
 (i)(ii)(iii) = (i) – (ii)(iv)(v) = (iii) + (iv)
As of December 31, 2025:
Commodity derivatives$460 $– $460 $(362)$(98)$– $– 
As of December 31, 2024:
Commodity derivatives$575 $– $575 $(495)$(79)$– $
Schedule of Offsetting Financial Liabilities
Offsetting of Financial Liabilities and Derivative Liabilities
Gross
Amounts of
Recognized
Liabilities
Gross
Amounts
Offset in the
Balance Sheet
Amounts
of Liabilities
Presented
in the
Balance Sheet
Gross Amounts Not Offset
 in the Balance Sheet
Amounts That
Would Have
Been Presented
On Net Basis
Financial
Instruments
Cash
Collateral
Received
Cash
Collateral
Paid
 (i)(ii)(iii) = (i) – (ii)(iv)(v) = (iii) + (iv)
As of December 31, 2025:
Commodity derivatives$363 $– $363 $(362)$– $– $
As of December 31, 2024:
Commodity derivatives$495 $– $495 $(495)$– $– $– 
Schedule of Derivative Instruments Effects on Statements of Operations
The following tables present the effect of our derivative instruments designated as fair value hedges on our Statements of Consolidated Operations for the years indicated:
Derivatives in Fair Value
Hedging Relationships
LocationGain (Loss) Recognized in
Income on Derivative
For the Year Ended December 31,
202520242023
Commodity derivativesRevenue$$$
Total$$$
Derivatives in Fair Value
Hedging Relationships
LocationGain (Loss) Recognized in
Income on Hedged Item
For the Year Ended December 31,
202520242023
Commodity derivativesRevenue$(3)$$(7)
Total$(3)$$(7)
Schedule of Derivative Instruments Effects on Statements of Comprehensive Income
The following tables present the effect of our derivative instruments designated as cash flow hedges on our Statements of Consolidated Operations and Statements of Consolidated Comprehensive Income for the years indicated:
Derivatives in Cash Flow
Hedging Relationships
Change in Value Recognized in
Other Comprehensive Income (Loss) on Derivative
For the Year Ended December 31,
202520242023
Interest rate derivatives$14 $(2)$(36)
Commodity derivatives – Revenue (1)321 182 81 
Commodity derivatives – Operating costs and expenses (1)(36)(67)12 
Total$299 $113 $57 
(1)The fair value of these derivative instruments will be reclassified to their respective locations on the Statement of Consolidated Operations when the forecasted transactions affect earnings.
Schedule of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Income/(Loss) to Income
Derivatives in Cash Flow
Hedging Relationships
Location
Gain (Loss) Reclassified from
Accumulated Other Comprehensive
Income (Loss) to Income
For the Year Ended December 31,
202520242023
Interest rate derivativesInterest expense$$$
Commodity derivativesRevenue235 249 106 
Commodity derivativesOperating costs and expenses(43)(71)
Total$199 $184 $115 
Schedule of Gain/(Loss) Recognized in Income on Derivative
The following table presents the effect of our derivative instruments not designated as hedging instruments on our Statements of Consolidated Operations for the years indicated:
Derivatives Not Designated
as Hedging Instruments
LocationGain (Loss) Recognized in
Income on Derivative
For the Year Ended December 31,
202520242023
Commodity derivativesRevenue$45 $26 $213 
Commodity derivativesOperating costs and expenses(5)(4)– 
Total$40 $22 $213 
Schedule of Unrealized Mark-to-Market Gains (Losses)
In total and inclusive of both fair value hedges and derivatives not designated as hedging instruments, unrealized mark-to-market gains (losses) included in gross operating margin were as follows for the years indicated:
For the Year Ended December 31,
202520242023
Mark-to-market gains (losses) in gross operating margin:
NGL Pipelines & Services
$(3)$(8)$(25)
Crude Oil Pipelines & Services(4)21 (5)
Natural Gas Pipelines & Services(10)(1)
Petrochemical & Refined Products Services(2)
Total mark-to-market impact on gross operating margin
$(16)$20 $(33)
Schedule of Fair Value Measurements of Financial Assets and Liabilities Measured on a Recurring Basis
The following tables set forth, by level within the Level 1, 2 and 3 fair value hierarchy (see Note 2), the carrying values of our financial assets and liabilities at the dates indicated. These assets and liabilities are measured on a recurring basis and are classified based on the lowest level of input used to estimate their fair value. Our assessment of the relative significance of such inputs requires judgment.
The values for commodity derivatives are presented before and after the application of CME Rule 814, which deems that financial instruments cleared by the CME are settled daily in connection with variation margin payments. As a result of this exchange rule, CME-related derivatives are considered to have no fair value at the balance sheet date for financial reporting purposes; however, the derivatives remain outstanding and subject to future commodity price fluctuations until they are settled in accordance with their contractual terms. Derivative transactions cleared on exchanges other than the CME (e.g., the Intercontinental Exchange or ICE) continue to be reported on a gross basis.
At December 31, 2025
Fair Value Measurements Using
Quoted Prices
in Active
Markets for
Identical Assets
and Liabilities
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Financial assets:
Commodity derivatives:
Value before application of CME Rule 814$172 $777 $– $949 
Impact of CME Rule 814(170)(319)– (489)
Total commodity derivatives458 – 460 
Total$$458 $– $460 
Financial liabilities:
Commodity derivatives:
Value before application of CME Rule 814$32 $710 $– $742 
Impact of CME Rule 814(31)(348)– (379)
Total commodity derivatives362 – 363 
Total$$362 $– $363 
At December 31, 2024
Fair Value Measurements Using
Quoted Prices
in Active
Markets for
Identical Assets
and Liabilities
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Financial assets:
Commodity derivatives:
Value before application of CME Rule 814$355 $443 $– $798 
Impact of CME Rule 814(56)(167)– (223)
Total commodity derivatives299 276 – 575 
Total$299 $276 $– $575 
Financial liabilities:
Commodity derivatives:
Value before application of CME Rule 814$291 $404 $21 $716 
Impact of CME Rule 814(43)(157)(21)(221)
Total commodity derivatives248 247 – 495 
Total$248 $247 $– $495