Reportable Segments

12 Months Ended

Dec. 31, 2019

REPORTABLE SEGMENTS:

Our reportable segments 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 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, inventory valuation adjustments, non-cash impairment charges, losses on extinguishments of debt and other non-operating income or expense items. Segment 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:



	Years Ended December 31,
	2019			2018			2017
Revenues:
Intrastate transportation and storage:
Revenues from external customers	$	2,749		$	3,428		$	2,891
Intersegment revenues	350			309			192
	3,099			3,737			3,083
Interstate transportation and storage:
Revenues from external customers	1,941			1,664			1,112
Intersegment revenues	22			18			19
	1,963			1,682			1,131
Midstream:
Revenues from external customers	2,280			2,090			2,510
Intersegment revenues	3,751			5,432			4,433
	6,031			7,522			6,943
NGL and refined products transportation and services:
Revenues from external customers	9,920			10,119			7,885
Intersegment revenues	1,721			1,004			763
	11,641			11,123			8,648
Crude oil transportation and services:
Revenues from external customers	18,447			17,236			11,672
Intersegment revenues	—			96			31
	18,447			17,332			11,703
Investment in Sunoco LP:
Revenues from external customers	16,590			16,982			11,713
Intersegment revenues	6			12			10
	16,596			16,994			11,723
Investment in USAC:
Revenues from external customers	678			495			—
Intersegment revenues	20			13			—
	698			508			—
All other:
Revenues from external customers	1,608			2,073			2,740
Intersegment revenues	81			155			161
	1,689			2,228			2,901
Eliminations	(5,951		)	(7,039		)	(5,609		)
Total revenues	$	54,213		$	54,087		$	40,523



	Years Ended December 31,
	2019			2018			2017
Cost of products sold:
Intrastate transportation and storage	$	1,909		$	2,665		$	2,327
Midstream	3,577			5,145			4,761
NGL and refined products transportation and services	8,393			8,462			6,508
Crude oil transportation and services	14,758			14,439			9,826
Investment in Sunoco LP	15,380			15,872			10,615
Investment in USAC	91			67			—
All other	1,504			2,006			2,509
Eliminations	(5,885		)	(6,998		)	(5,580		)
Total cost of products sold	$	39,727		$	41,658		$	30,966



	Years Ended December 31,
	2019		2018		2017
Depreciation, depletion and amortization:
Intrastate transportation and storage	$	184	$	169	$	147
Interstate transportation and storage	387		334		254
Midstream	1,066		1,006		954
NGL and refined products transportation and services	613		466		401
Crude oil transportation and services	437		445		402
Investment in Sunoco LP	181		167		169
Investment in USAC	231		169		—
All other	48		103		227
Total depreciation, depletion and amortization	$	3,147	$	2,859	$	2,554



	Years Ended December 31,
	2019			2018		2017
Equity in earnings (losses) of unconsolidated affiliates:
Intrastate transportation and storage	$	18		$	19	$	(156	)
Interstate transportation and storage	222			227		236
Midstream	20			26		20
NGL and refined products transportation and services	53			64		33
Crude oil transportation and services	(1		)	6		4
All other	(10		)	2		7
Total equity in earnings of unconsolidated affiliates	$	302		$	344	$	144



	Years Ended December 31,
	2019			2018			2017
Segment Adjusted EBITDA:
Intrastate transportation and storage	$	999		$	927		$	626
Interstate transportation and storage	1,792			1,680			1,274
Midstream	1,602			1,627			1,481
NGL and refined products transportation and services	2,666			1,979			1,641
Crude oil transportation and services	2,972			2,330			1,379
Investment in Sunoco LP	665			638			732
Investment in USAC	420			289			—
All Other	98			40			187
Total Segment Adjusted EBITDA	11,214			9,510			7,320
Depreciation, depletion and amortization	(3,147		)	(2,859		)	(2,554		)
Interest expense, net of interest capitalized	(2,331		)	(2,055		)	(1,922		)
Impairment losses	(74		)	(431		)	(1,039		)
Gains (losses) on interest rate derivatives	(241		)	47			(37		)
Non-cash compensation expense	(113		)	(105		)	(99		)
Unrealized gains (losses) on commodity risk management activities	(5		)	(11		)	59
Inventory valuation adjustments	79			(85		)	24
Losses on extinguishments of debt	(18		)	(112		)	(89		)
Adjusted EBITDA related to unconsolidated affiliates	(626		)	(655		)	(716		)
Equity in earnings of unconsolidated affiliates	302			344			144
Impairment of investments in unconsolidated affiliates	—			—			(313		)
Adjusted EBITDA related to discontinued operations	—			25			(223		)
Other, net	54			21			155
Income from continuing operations before income tax (expense) benefit	5,094			3,634			710
Income tax (expense) benefit from continuing operations	(195		)	(4		)	1,833
Income from continuing operations	4,899			3,630			2,543
Loss from discontinued operations, net of income taxes	—			(265		)	(177		)
Net income	$	4,899		$	3,365		$	2,366



	December 31,
	2019		2018		2017
Segment assets:
Intrastate transportation and storage	$	6,648	$	6,365	$	5,020
Interstate transportation and storage	18,111		15,081		15,316
Midstream	20,332		19,745		20,004
NGL and refined products transportation and services	19,145		18,267		17,600
Crude oil transportation and services	22,840		18,022		17,730
Investment in Sunoco LP	5,438		4,879		8,344
Investment in USAC	3,730		3,775		—
All other and eliminations	2,636		2,112		2,232
Total segment assets	$	98,880	$	88,246	$	86,246



	Years Ended December 31,
	2019		2018		2017
Additions to property, plant and equipment ⁽¹⁾:
Intrastate transportation and storage	$	124	$	344	$	175
Interstate transportation and storage	375		812		728
Midstream	827		1,161		1,308
NGL and refined products transportation and services	2,976		2,381		2,971
Crude oil transportation and services	403		474		453
Investment in Sunoco LP	148		103		103
Investment in USAC	200		205		—
All other	215		150		268
Total additions to property, plant and equipment ⁽¹⁾	$	5,268	$	5,630	$	6,006


⁽¹⁾	Excluding acquisitions, net of contributions in aid of construction costs (capital expenditures related to the Partnership’s proportionate ownership on an accrual basis).



	December 31,
	2019		2018		2017
Advances to and investments in affiliates:
Intrastate transportation and storage	$	88	$	83	$	85
Interstate transportation and storage	2,524		2,070		2,118
Midstream	112		124		126
NGL and refined products transportation and services	461		243		234
Crude oil transportation and services	242		28		22
All other	33		94		120
Total advances to and investments in affiliates	$	3,460	$	2,642	$	2,705