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Reportable Segments
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Reportable Segments
REPORTABLE SEGMENTS
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.
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 and gathering, transportation and other fees.
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. Inventory adjustments that are excluded from the calculation of Adjusted EBITDA represent only the changes in lower of cost or market reserves on inventory that is carried at last-in, first-out (“LIFO”). These amounts are unrealized valuation adjustments applied to Sunoco LP’s fuel volumes remaining in inventory at the end of the period.
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
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Revenues:
 
 
 
 
 
 
 
Intrastate transportation and storage:
 
 
 
 
 
 
 
Revenues from external customers
$
465

 
$
671

 
$
1,001

 
$
1,440

Intersegment revenues
51

 
94

 
108

 
181

 
516

 
765

 
1,109

 
1,621

Interstate transportation and storage:
 
 
 
 
 
 
 
Revenues from external customers
440

 
487

 
899

 
979

Intersegment revenues
5

 
6

 
10

 
12

 
445

 
493

 
909

 
991

Midstream:
 
 
 
 
 
 
 
Revenues from external customers
391

 
337

 
892

 
1,000

Intersegment revenues
627

 
861

 
1,296

 
1,916

 
1,018

 
1,198

 
2,188

 
2,916

NGL and refined products transportation and services:
 
 
 
 
 
 
 
Revenues from external customers
1,666

 
2,356

 
3,784

 
5,069

Intersegment revenues
453

 
256

 
1,050

 
574

 
2,119

 
2,612

 
4,834

 
5,643

Crude oil transportation and services:
 
 
 
 
 
 
 
Revenues from external customers
1,811

 
5,012

 
6,024

 
9,179

Intersegment revenues
28

 
34

 
28

 
53

 
1,839

 
5,046

 
6,052

 
9,232

Investment in Sunoco LP:
 
 
 
 
 
 
 
Revenues from external customers
2,043

 
4,474

 
5,303

 
8,166

Intersegment revenues
37

 
1

 
49

 
1

 
2,080

 
4,475

 
5,352

 
8,167

Investment in USAC:
 
 
 
 
 
 
 
Revenues from external customers
166

 
169

 
342

 
336

Intersegment revenues
3

 
5

 
6

 
9

 
169

 
174

 
348

 
345

All other:
 
 
 
 
 
 
 
Revenues from external customers
356

 
371

 
720

 
829

Intersegment revenues
136

 
20

 
285

 
59

 
492

 
391

 
1,005

 
888

Eliminations
(1,340
)
 
(1,277
)
 
(2,832
)
 
(2,805
)
Total revenues
$
7,338

 
$
13,877

 
$
18,965

 
$
26,998


 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019*
 
2020
 
2019*
Segment Adjusted EBITDA:
 
 
 
 
 
 
 
Intrastate transportation and storage
$
187

 
$
290

 
$
427

 
$
542

Interstate transportation and storage
403

 
460

 
807

 
916

Midstream
367

 
412

 
750

 
794

NGL and refined products transportation and services
674

 
644

 
1,337

 
1,256

Crude oil transportation and services
519

 
752

 
1,110

 
1,496

Investment in Sunoco LP
182

 
152

 
391

 
305

Investment in USAC
105

 
105

 
211

 
206

All other
1

 
10

 
40

 
45

Adjusted EBITDA (consolidated)
2,438

 
2,825

 
5,073

 
5,560

Depreciation, depletion and amortization
(936
)
 
(785
)
 
(1,803
)
 
(1,559
)
Interest expense, net of interest capitalized
(579
)
 
(578
)
 
(1,181
)
 
(1,168
)
Impairment losses
(4
)
 
—

 
(1,329
)
 
(50
)
Losses on interest rate derivatives
(3
)
 
(122
)
 
(332
)
 
(196
)
Non-cash compensation expense
(41
)
 
(29
)
 
(63
)
 
(58
)
Unrealized gains (losses) on commodity risk management activities
(48
)
 
(23
)
 
3

 
26

Losses on extinguishments of debt
—

 
—

 
(62
)
 
(18
)
Inventory valuation adjustments (Sunoco LP)
90

 
4

 
(137
)
 
97

Adjusted EBITDA related to unconsolidated affiliates
(157
)
 
(163
)
 
(311
)
 
(309
)
Equity in earnings of unconsolidated affiliates
85

 
77

 
78

 
142

Other, net
(74
)
 
37

 
(101
)
 
20

Income (loss) before income tax expense
771

 
1,243

 
(165
)
 
2,487

Income tax expense
(99
)
 
(34
)
 
(127
)
 
(160
)
Net income (loss)
$
672

 
$
1,209

 
$
(292
)
 
$
2,327