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Reportable Segments
 6 Months Ended
Jun. 30, 2024
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 and, subsequent to Sunoco LP’s acquisition of NuStar in May 2024, also in gathering, transportation and other fees. 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 valuation 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
June 30,		Six Months Ended
June 30,
2024202320242023
Revenues:
Intrastate transportation and storage:
Revenues from external customers$578 $730 $1,388 $1,544 
Intersegment revenues59 77 167 553 
637 807 1,555 2,097 
Interstate transportation and storage:
Revenues from external customers513 536 1,108 1,158 
Intersegment revenues6 14 13 26 
519 550 1,121 1,184 
Midstream:
Revenues from external customers776 786 1,582 1,595 
Intersegment revenues1,731 1,682 3,699 3,627 
2,507 2,468 5,281 5,222 
NGL and refined products transportation and services:
Revenues from external customers4,897 4,104 10,581 8,841 
Intersegment revenues898 897 1,740 1,763 
5,795 5,001 12,321 10,604 
Crude oil transportation and services:
Revenues from external customers7,362 5,953 15,000 12,032 
Intersegment revenues10 — 10 1 
7,372 5,953 15,010 12,033 
Investment in Sunoco LP:
Revenues from external customers6,172 5,729 11,667 11,078 
Intersegment revenues1 16 5 29 
6,173 5,745 11,672 11,107 
Investment in USAC:
Revenues from external customers230 201 453 393 
Intersegment revenues6 6 12 11 
236 207 465 404 
All other:
Revenues from external customers201 281 579 674 
Intersegment revenues95 118 183 269 
296 399 762 943 
Eliminations(2,806)(2,810)(5,829)(6,279)
Total revenues$20,729 $18,320 $42,358 $37,315 
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Segment Adjusted EBITDA:
Intrastate transportation and storage$328 $216 $766 $625 
Interstate transportation and storage392 441 875 977 
Midstream693 579 1,389 1,220 
NGL and refined products transportation and services1,070 837 2,059 1,776 
Crude oil transportation and services801 674 1,649 1,200 
Investment in Sunoco LP320 250 562 471 
Investment in USAC144 125 283 243 
All other12 — 57 43 
Adjusted EBITDA (consolidated)$3,760 $3,122 $7,640 $6,555 
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Reconciliation of net income to Adjusted EBITDA:
Net income$1,992 $1,233 $3,684 $2,680 
Depreciation, depletion and amortization1,213 1,061 2,467 2,120 
Interest expense, net of interest capitalized762 641 1,490 1,260 
Income tax expense227 108 316 179 
Impairment losses50 10 50 11 
Gain on interest rate derivatives(3)(35)(12)(15)
Non-cash compensation expense30 27 76 64 
Unrealized (gain) loss on commodity risk management activities(38)(55)103 75 
Inventory valuation adjustments (Sunoco LP)32 57 (98)28 
Loss on extinguishment of debt6 — 11 — 
Adjusted EBITDA related to unconsolidated affiliates170 171 341 332 
Equity in earnings of unconsolidated affiliates(85)(95)(183)(183)
Gain on sale of West Texas assets (Sunoco LP)(598)— (598)— 
Other, net2 (1)(7)4 
Adjusted EBITDA (consolidated)$3,760 $3,122 $7,640 $6,555