XML 32 R19.htm IDEA: XBRL DOCUMENT v3.23.3
Reportable Segments
 9 Months Ended
Sep. 30, 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, as well as certain non-recurring gains and losses. 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
September 30,		Nine Months Ended
September 30,
2023202220232022
Revenues:
Intrastate transportation and storage:
Revenues from external customers$880 $2,081 $2,424 $5,550 
Intersegment revenues93 302 646 668 
973 2,383 3,070 6,218 
Interstate transportation and storage:
Revenues from external customers562 533 1,720 1,591 
Intersegment revenues9 16 35 54 
571 549 1,755 1,645 
Midstream:
Revenues from external customers775 1,115 2,370 3,399 
Intersegment revenues2,002 3,756 5,629 10,447 
2,777 4,871 7,999 13,846 
NGL and refined products transportation and services:
Revenues from external customers4,369 5,169 13,210 16,644 
Intersegment revenues891 906 2,654 3,265 
5,260 6,075 15,864 19,909 
Crude oil transportation and services:
Revenues from external customers7,289 6,415 19,321 19,640 
Intersegment revenues— 1 1 2 
7,289 6,416 19,322 19,642 
Investment in Sunoco LP:
Revenues from external customers6,317 6,577 17,395 19,767 
Intersegment revenues3 17 32 44 
6,320 6,594 17,427 19,811 
Investment in USAC:
Revenues from external customers212 176 605 503 
Intersegment revenues5 3 16 11 
217 179 621 514 
All other:
Revenues from external customers335 873 1,009 2,281 
Intersegment revenues109 211 378 480 
444 1,084 1,387 2,761 
Eliminations(3,112)(5,212)(9,391)(14,971)
Total revenues$20,739 $22,939 $58,054 $69,375 
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
Segment Adjusted EBITDA:
Intrastate transportation and storage$244 $301 $869 $963 
Interstate transportation and storage491 409 1,468 1,259 
Midstream631 868 1,851 2,578 
NGL and refined products transportation and services1,076 634 2,852 2,097 
Crude oil transportation and services706 461 1,906 1,616 
Investment in Sunoco LP257 276 728 681 
Investment in USAC130 109 373 313 
All other6 30 49 149 
Adjusted EBITDA (consolidated)$3,541 $3,088 $10,096 $9,656 
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
Reconciliation of net income to Adjusted EBITDA:
Net income$1,047 $1,322 $3,727 $4,431 
Depreciation, depletion and amortization1,107 1,030 3,227 3,104 
Interest expense, net of interest capitalized632 577 1,892 1,714 
Income tax expense77 82 256 159 
Impairment losses and other1 86 12 386 
Gains on interest rate derivatives(32)(60)(47)(303)
Non-cash compensation expense35 27 99 88 
Unrealized (gains) losses on commodity risk management activities107 (76)182 (130)
Inventory valuation adjustments (Sunoco LP)(141)40 (113)(81)
Adjusted EBITDA related to unconsolidated affiliates182 147 514 409 
Equity in earnings of unconsolidated affiliates(103)(68)(286)(186)
Non-operating litigation-related loss625 — 625 — 
Other, net4 (19)8 65 
Adjusted EBITDA (consolidated)$3,541 $3,088 $10,096 $9,656