XML 57 R22.htm IDEA: XBRL DOCUMENT v3.19.3
Reportable Segments
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Reportable Segments
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 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 and consolidated Adjusted EBITDA as measures of segment performance. We define Segment Adjusted EBITDA and consolidated 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, inventory valuation adjustments, non-cash impairment charges, losses on extinguishments of debt and other non-operating income or expense items. Segment Adjusted EBITDA and consolidated Adjusted EBITDA reflect amounts for unconsolidated affiliates based on the same recognition and measurement methods used to record equity in earnings of unconsolidated affiliates. Adjusted EBITDA related to unconsolidated affiliates excludes the same items with respect to the unconsolidated affiliate as those excluded from the calculation of Segment Adjusted EBITDA and consolidated Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliates, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliates. We do not control our unconsolidated affiliates; therefore, we do not control the earnings or cash flows of such affiliates.  The use of Segment Adjusted EBITDA or Adjusted EBITDA related to unconsolidated affiliates as an analytical tool should be limited accordingly.
The following tables present financial information by segment:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2019
 
2018
 
2019
 
2018
Revenues:
 
 
 
 
 
 
 
Intrastate transportation and storage:
 
 
 
 
 
 
 
Revenues from external customers
$
675

 
$
846

 
$
2,115

 
$
2,424

Intersegment revenues
89

 
76

 
270

 
186

 
764

 
922

 
2,385

 
2,610

Interstate transportation and storage:
 
 
 
 
 
 
 
Revenues from external customers
475

 
440

 
1,454

 
1,174

Intersegment revenues
4

 
5

 
16

 
13

 
479

 
445

 
1,470

 
1,187

Midstream:
 
 
 
 
 
 
 
Revenues from external customers
704

 
537

 
1,704

 
1,571

Intersegment revenues
876

 
1,716

 
2,792

 
4,170

 
1,580

 
2,253

 
4,496

 
5,741

NGL and refined products transportation and services:
 
 
 
 
 
 
 
Revenues from external customers
2,271

 
2,845

 
7,340

 
7,467

Intersegment revenues
607

 
218

 
1,181

 
710

 
2,878

 
3,063

 
8,521

 
8,177

Crude oil transportation and services:
 
 
 
 
 
 
 
Revenues from external customers
4,453

 
4,422

 
13,685

 
12,942

Intersegment revenues
—

 
16

 
—

 
44

 
4,453

 
4,438

 
13,685

 
12,986

Investment in Sunoco LP:
 
 
 
 
 
 
 
Revenues from external customers
4,328

 
4,760

 
12,494

 
13,114

Intersegment revenues
3

 
1

 
4

 
3

 
4,331

 
4,761

 
12,498

 
13,117

Investment in USAC:
 
 
 
 
 
 
 
Revenues from external customers
169

 
166

 
505

 
331

Intersegment revenues
6

 
3

 
15

 
5

 
175

 
169

 
520

 
336

All other:
 
 
 
 
 
 
 
Revenues from external customers
420

 
498

 
1,196

 
1,491

Intersegment revenues
21

 
27

 
80

 
108

 
441

 
525

 
1,276

 
1,599

Eliminations
(1,606
)
 
(2,062
)
 
(4,358
)
 
(5,239
)
Total revenues
$
13,495

 
$
14,514

 
$
40,493

 
$
40,514


 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2019
 
2018
 
2019
 
2018
Segment Adjusted EBITDA:
 
 
 
 
 
 
 
Intrastate transportation and storage
$
235

 
$
221

 
$
777

 
$
621

Interstate transportation and storage
442

 
459

 
1,358

 
1,200

Midstream
411

 
434

 
1,205

 
1,225

NGL and refined products transportation and services
667

 
498

 
1,923

 
1,410

Crude oil transportation and services
700

 
682

 
2,257

 
1,694

Investment in Sunoco LP
192

 
208

 
497

 
457

Investment in USAC
104

 
90

 
310

 
185

All other
35

 
(15
)
 
80

 
49

Adjusted EBITDA (consolidated)
2,786

 
2,577

 
8,407

 
6,841

Depreciation, depletion and amortization
(784
)
 
(750
)
 
(2,343
)
 
(2,109
)
Interest expense, net of interest capitalized
(579
)
 
(535
)
 
(1,747
)
 
(1,511
)
Impairment losses
(12
)
 
—

 
(62
)
 
—

Gains (losses) on interest rate derivatives
(175
)
 
45

 
(371
)
 
117

Non-cash compensation expense
(27
)
 
(27
)
 
(85
)
 
(82
)
Unrealized gains (losses) on commodity risk management activities
64

 
97

 
90

 
(255
)
Losses on extinguishments of debt
—

 
—

 
(18
)
 
(106
)
Inventory valuation adjustments
(26
)
 
(7
)
 
71

 
50

Adjusted EBITDA related to unconsolidated affiliates
(161
)
 
(179
)
 
(470
)
 
(503
)
Equity in earnings of unconsolidated affiliates
82

 
87

 
224

 
258

Adjusted EBITDA related to discontinued operations
—

 
—

 
—

 
25

Other, net
47

 
33

 
67

 
59

Income from continuing operations before income tax expense
1,215

 
1,341

 
3,763

 
2,784

Income tax (expense) benefit from continuing operations
(54
)
 
52

 
(214
)
 
(6
)
Income from continuing operations
1,161

 
1,393

 
3,549

 
2,778

Loss from discontinued operations, net of income taxes
—

 
(2
)
 
—

 
(265
)
Net income
$
1,161

 
$
1,391

 
$
3,549

 
$
2,513