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Reportable Segments
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Reportable Segments REPORTABLE SEGMENTS
Our reportable segments, which conduct their business primarily in the United States, are as follows:
•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 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
March 31,
20222021
Revenues:
Intrastate transportation and storage:
Revenues from external customers
$1,475 $3,976 
Intersegment revenues
157 924 
1,632 4,900 
Interstate transportation and storage:
Revenues from external customers
547 501 
Intersegment revenues
19 24 
566 525 
Midstream:
Revenues from external customers
1,131 578 
Intersegment revenues
2,794 2,094 
3,925 2,672 
NGL and refined products transportation and services:
Revenues from external customers
5,245 3,397 
Intersegment revenues
1,032 593 
6,277 3,990 
Crude oil transportation and services:
Revenues from external customers
5,926 3,500 
Intersegment revenues
— — 
5,926 3,500 
Investment in Sunoco LP:
Revenues from external customers
5,397 3,469 
Intersegment revenues
5 2 
5,402 3,471 
Investment in USAC:
Revenues from external customers
159 155 
Intersegment revenues
4 3 
163 158 
All other:
Revenues from external customers
611 1,419 
Intersegment revenues
104 93 
715 1,512 
Eliminations
(4,115)(3,733)
Total revenues
$20,491 $16,995 
Three Months Ended
March 31,
20222021
Segment Adjusted EBITDA:
Intrastate transportation and storage
$444 $2,813 
Interstate transportation and storage
453 453 
Midstream
807 288 
NGL and refined products transportation and services
700 647 
Crude oil transportation and services
593 510 
Investment in Sunoco LP
191 157 
Investment in USAC
98 100 
All other
54 72 
Adjusted EBITDA (consolidated)
3,340 5,040 
Depreciation, depletion and amortization
(1,028)(954)
Interest expense, net of interest capitalized
(559)(589)
Impairment losses(300)(3)
Gains on interest rate derivatives114 194 
Non-cash compensation expense
(36)(28)
Unrealized gains (losses) on commodity risk management activities(45)46 
Inventory valuation adjustments (Sunoco LP)120 100 
Losses on extinguishments of debt
— (7)
Adjusted EBITDA related to unconsolidated affiliates
(125)(123)
Equity in earnings of unconsolidated affiliates56 55 
Other, net
(59)(15)
Income before income tax expense1,478 3,716 
Income tax (expense) benefit9 (75)
Net income$1,487 $3,641