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Reportable Segments
 3 Months Ended
Mar. 31, 2023
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,
20232022
Revenues:
Intrastate transportation and storage:
Revenues from external customers$814 $1,475 
Intersegment revenues476 157 
1,290 1,632 
Interstate transportation and storage:
Revenues from external customers622 547 
Intersegment revenues12 19 
634 566 
Midstream:
Revenues from external customers809 1,131 
Intersegment revenues1,945 2,794 
2,754 3,925 
NGL and refined products transportation and services:
Revenues from external customers4,737 5,245 
Intersegment revenues866 1,032 
5,603 6,277 
Crude oil transportation and services:
Revenues from external customers6,079 5,926 
Intersegment revenues1 — 
6,080 5,926 
Investment in Sunoco LP:
Revenues from external customers5,349 5,397 
Intersegment revenues13 5 
5,362 5,402 
Investment in USAC:
Revenues from external customers192 159 
Intersegment revenues5 4 
197 163 
All other:
Revenues from external customers393 611 
Intersegment revenues151 104 
544 715 
Eliminations(3,469)(4,115)
Total revenues$18,995 $20,491 
Three Months Ended
March 31,
20232022
Segment Adjusted EBITDA:
Intrastate transportation and storage$409 $444 
Interstate transportation and storage536 453 
Midstream641 807 
NGL and refined products transportation and services939 700 
Crude oil transportation and services526 593 
Investment in Sunoco LP221 191 
Investment in USAC118 98 
All other43 54 
Adjusted EBITDA (consolidated)$3,433 $3,340 
Three Months Ended
March 31,
20232022
Reconciliation of net income to Adjusted EBITDA:
Net income$1,447 $1,487 
Depreciation, depletion and amortization1,059 1,028 
Interest expense, net of interest capitalized619 559 
Income tax expense (benefit)71 (9)
Impairment losses1 300 
(Gains) losses on interest rate derivatives20 (114)
Non-cash compensation expense37 36 
Unrealized losses on commodity risk management activities130 45 
Inventory valuation adjustments (Sunoco LP)(29)(120)
Adjusted EBITDA related to unconsolidated affiliates161 125 
Equity in earnings of unconsolidated affiliates(88)(56)
Other, net5 59 
Adjusted EBITDA (consolidated)$3,433 $3,340