REPORTABLE SEGMENTS

As a result of the Energy Transfer Merger in October 2018, our reportable segments were reevaluated and currently reflect the following segments, which conduct their business primarily in the United States:

•intrastate transportation and storage;

•interstate transportation and storage;

•midstream;

•NGL and refined products transportation and services;

•crude oil transportation and services;

•investment in Sunoco LP;

•investment in USAC; and

•all other.

Consolidated revenues and expenses reflect the elimination of all material intercompany transactions.

The investment in USAC segment reflects the results of USAC beginning April 2018, the date that the Partnership obtained control of USAC.

Revenues from our intrastate transportation and storage segment are primarily reflected in natural gas sales and gathering, transportation and other fees. Revenues from our interstate transportation and storage segment are primarily reflected in gathering, transportation and other fees. Revenues from our midstream segment are primarily reflected in natural gas sales, NGL sales and gathering, transportation and other fees. Revenues from our NGL and refined products transportation and services segment are primarily reflected in NGL sales and gathering, transportation, terminalling and other fees. Revenues from our crude oil transportation and services segment are primarily reflected in crude sales. Revenues from our investment in Sunoco LP segment are primarily reflected in refined product sales. Revenues from our investment in USAC segment are primarily reflected in gathering, transportation and other fees. Revenues from our all other segment are primarily reflected in natural gas sales.

We report Segment Adjusted EBITDA as a measure of segment performance. We define Segment Adjusted EBITDA as total partnership earnings before interest, taxes, depreciation, depletion, amortization and other non-cash items, such as non-cash compensation expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, non-cash impairment charges, losses on extinguishments of debt and other non-operating income or expense items. Unrealized gains and losses on commodity risk management activities include unrealized gains and losses on commodity derivatives and inventory valuation adjustments (excluding lower of cost or market adjustments). Segment Adjusted EBITDA reflects amounts for unconsolidated affiliates based on our proportionate ownership.

The following tables present financial information by segment:



	Three Months Ended March 31,
	2019			2018
Revenues:
Intrastate transportation and storage:
Revenues from external customers	$	769		$	817
Intersegment revenues	87			58
	856			875
Interstate transportation and storage:
Revenues from external customers	492			362
Intersegment revenues	6			3
	498			365
Midstream:
Revenues from external customers	663			440
Intersegment revenues	1,055			1,174
	1,718			1,614
NGL and refined products transportation and services:
Revenues from external customers	2,713			2,263
Intersegment revenues	318			283
	3,031			2,546
Crude oil transportation and services:
Revenues from external customers	4,167			3,731
Intersegment revenues	19			14
	4,186			3,745
Investment in Sunoco LP:
Revenues from external customers	3,692			3,748
Intersegment revenues	—			1
	3,692			3,749
Investment in USAC:
Revenues from external customers	167			—
Intersegment revenues	4			—
	171			—
All other:
Revenues from external customers	458			521
Intersegment revenues	39			50
	497			571
Eliminations	(1,528		)	(1,583		)
Total revenues	$	13,121		$	11,882



	Three Months Ended March 31,
	2019			2018
Segment Adjusted EBITDA:
Intrastate transportation and storage	$	252		$	192
Interstate transportation and storage	456			366
Midstream	382			377
NGL and refined products transportation and services	612			451
Crude oil transportation and services	806			464
Investment in Sunoco LP	153			109
Investment in USAC	101			—
All other	35			43
Total	2,797			2,002
Depreciation, depletion and amortization	(774		)	(665		)
Interest expense, net of interest capitalized	(590		)	(466		)
Impairment losses	(50		)	—
Gains (losses) on interest rate derivatives	(74		)	52
Non-cash compensation expense	(29		)	(23		)
Unrealized gains (losses) on commodity risk management activities	49			(87		)
Losses on extinguishments of debt	(18		)	(106		)
Inventory valuation adjustments	93			25
Equity in earnings of unconsolidated affiliates	65			79
Adjusted EBITDA related to unconsolidated affiliates	(146		)	(156		)
Adjusted EBITDA related to discontinued operations	—			20
Other, net	(17		)	41
Income from continuing operations before income tax (expense) benefit	1,306			716
Income tax (expense) benefit from continuing operations	(126		)	10
Income from continuing operations	1,180			726
Loss from discontinued operations, net of income taxes	—			(237		)
Net income	$	1,180		$	489



	March 31, 2019		December 31, 2018
Assets:
Intrastate transportation and storage	$	6,601	$	6,365
Interstate transportation and storage	15,161		15,081
Midstream	19,759		19,745
NGL and refined products transportation and services	19,185		18,267
Crude oil transportation and services	18,363		18,022
Investment in Sunoco LP	5,423		4,879
Investment in USAC	3,758		3,775
All other and eliminations	1,523		2,112
Total assets	$	89,773	$	88,246