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SEGMENTS (Tables) | 9 Months Ended
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Sep. 30, 2018
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] |
Segments | The following tables set forth certain selected financial information for our operating segments for the periods indicated:
Three Months Ended September 30, 2018 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total
| (Thousands of dollars)
NGL and condensate sales | $ | 501,163 |  |  | $ | 2,861,896 |  |  | $ | — |  |  | $ | 3,363,059 |
Residue natural gas sales | 245,474 |  |  | — |  |  | 763 |  |  | 246,237 |
Gathering, processing and exchange services revenue | 41,101 |  |  | 116,833 |  |  | — |  |  | 157,934 |
Transportation and storage revenue | — |  |  | 45,251 |  |  | 98,031 |  |  | 143,282 |
Other | 3,517 |  |  | 2,308 |  |  | 6,400 |  |  | 12,225 |
Total revenues (c) | 791,255 |  |  | 3,026,288 |  |  | 105,194 |  |  | 3,922,737 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (542,463 | ) |  | (2,544,854 | ) |  | (2,384 | ) |  | (3,089,701 | )
Operating costs | (90,970 | ) |  | (101,126 | ) |  | (36,543 | ) |  | (228,639 | )
Equity in net earnings from investments | 74 |  |  | 16,450 |  |  | 22,789 |  |  | 39,313 |
Noncash compensation expense and other | 1,703 |  |  | 2,268 |  |  | 1,050 |  |  | 5,021 |
Segment adjusted EBITDA | $ | 159,599 |  |  | $ | 399,026 |  |  | $ | 90,106 |  |  | $ | 648,731 |
Depreciation and amortization | $ | (49,223 | ) |  | $ | (43,688 | ) |  | $ | (13,625 | ) |  | $ | (106,536 | )
Capital expenditures | $ | 213,034 |  |  | $ | 444,780 |  |  | $ | 31,522 |  |  | $ | 689,336 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $316.0 million, of which $276.4 million related to sales within the segment, and cost of sales and fuel of $132.7 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $65.9 million and cost of sales and fuel of $5.5 million. (c) - Intersegment revenues for the Natural Gas Gathering and Processing, Natural Gas Liquids and Natural Gas Pipelines segments totaled $519.7 million, $7.4 million and $2.4 million, respectively.
Three Months Ended September 30, 2018 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Thousands of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 3,363,059 |  |  | $ | (526,398 | ) |  | $ | 2,836,661 |
Residue natural gas sales |  | 246,237 |  |  | — |  |  | 246,237 |
Gathering, processing and exchange services revenue |  | 157,934 |  |  | — |  |  | 157,934 |
Transportation and storage revenue |  | 143,282 |  |  | (2,370 | ) |  | 140,912 |
Other |  | 12,225 |  |  | (79 | ) |  | 12,146 |
Total revenues (a) |  | $ | 3,922,737 |  |  | $ | (528,847 | ) |  | $ | 3,393,890 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (3,089,701 | ) |  | $ | 528,936 |  |  | $ | (2,560,765 | )
Operating costs |  | $ | (228,639 | ) |  | $ | (1,732 | ) |  | $ | (230,371 | )
Depreciation and amortization |  | $ | (106,536 | ) |  | $ | (847 | ) |  | $ | (107,383 | )
Equity in net earnings from investments |  | $ | 39,313 |  |  | $ | — |  |  | $ | 39,313 |
Capital expenditures |  | $ | 689,336 |  |  | $ | 4,967 |  |  | $ | 694,303 |
(a) - Noncustomer revenue for the three months ended September 30, 2018, totaled $(17.7) million related primarily to losses reclassified from accumulated other comprehensive income from derivatives on commodity contracts.
Three Months Ended September 30, 2017 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total
| (Thousands of dollars)
Sales to unaffiliated customers | $ | 453,432 |  |  | $ | 2,348,052 |  |  | $ | 104,340 |  |  | $ | 2,905,824 |
Intersegment revenues | 329,496 |  |  | 153,927 |  |  | 2,098 |  |  | 485,521 |
Total revenues | 782,928 |  |  | 2,501,979 |  |  | 106,438 |  |  | 3,391,345 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (566,988 | ) |  | (2,136,207 | ) |  | (10,614 | ) |  | (2,713,809 | )
Operating costs | (79,559 | ) |  | (89,803 | ) |  | (29,568 | ) |  | (198,930 | )
Equity in net earnings from investments | 3,433 |  |  | 15,287 |  |  | 21,338 |  |  | 40,058 |
Other | 2,136 |  |  | 2,663 |  |  | (67 | ) |  | 4,732 |
Segment adjusted EBITDA | $ | 141,950 |  |  | $ | 293,919 |  |  | $ | 87,527 |  |  | $ | 523,396 |
Depreciation and amortization | $ | (46,842 | ) |  | $ | (41,929 | ) |  | $ | (12,765 | ) |  | $ | (101,536 | )
Impairment of long-lived assets and equity investments | $ | (20,240 | ) |  | $ | — |  |  | $ | — |  |  | $ | (20,240 | )
Capital expenditures | $ | 85,542 |  |  | $ | 27,024 |  |  | $ | 18,811 |  |  | $ | 131,377 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $293.1 million, of which $250.2 million related to sales within the segment, and cost of sales and fuel of $124.2 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $65.6 million and cost of sales and fuel of $10.5 million.
Three Months Ended September 30, 2017 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Thousands of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
Sales to unaffiliated customers |  | $ | 2,905,824 |  |  | $ | 542 |  |  | $ | 2,906,366 |
Intersegment revenues |  | 485,521 |  |  | (485,521 | ) |  | — |
Total revenues |  | $ | 3,391,345 |  |  | $ | (484,979 | ) |  | $ | 2,906,366 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (2,713,809 | ) |  | $ | 484,393 |  |  | $ | (2,229,416 | )
Operating costs |  | $ | (198,930 | ) |  | $ | (5,404 | ) |  | $ | (204,334 | )
Depreciation and amortization |  | $ | (101,536 | ) |  | $ | (762 | ) |  | $ | (102,298 | )
Impairment of long-lived assets and equity investments |  | $ | (20,240 | ) |  | $ | — |  |  | $ | (20,240 | )
Equity in net earnings from investments |  | $ | 40,058 |  |  | $ | — |  |  | $ | 40,058 |
Capital expenditures |  | $ | 131,377 |  |  | $ | 3,822 |  |  | $ | 135,199 |
Nine Months Ended September 30, 2018 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total
| (Thousands of dollars)
NGL and condensate sales | $ | 1,362,159 |  |  | $ | 7,884,183 |  |  | $ | — |  |  | $ | 9,246,342 |
Residue natural gas sales | 709,089 |  |  | — |  |  | 5,861 |  |  | 714,950 |
Gathering, processing and exchange services revenue | 122,331 |  |  | 296,561 |  |  | — |  |  | 418,892 |
Transportation and storage revenue | — |  |  | 143,741 |  |  | 289,646 |  |  | 433,387 |
Other | 6,596 |  |  | 8,202 |  |  | 19,390 |  |  | 34,188 |
Total revenues (c) | 2,200,175 |  |  | 8,332,687 |  |  | 314,897 |  |  | 10,847,759 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (1,478,044 | ) |  | (7,009,438 | ) |  | (10,475 | ) |  | (8,497,957 | )
Operating costs | (272,931 | ) |  | (289,328 | ) |  | (104,692 | ) |  | (666,951 | )
Equity in net earnings from investments | 948 |  |  | 49,456 |  |  | 65,666 |  |  | 116,070 |
Noncash compensation expense and other | 6,868 |  |  | 9,789 |  |  | 3,701 |  |  | 20,358 |
Segment adjusted EBITDA | $ | 457,016 |  |  | $ | 1,093,166 |  |  | $ | 269,097 |  |  | $ | 1,819,279 |
Depreciation and amortization | $ | (145,120 | ) |  | $ | (128,993 | ) |  | $ | (41,320 | ) |  | $ | (315,433 | )
Total assets | $ | 5,811,140 |  |  | $ | 9,632,212 |  |  | $ | 2,109,897 |  |  | $ | 17,553,249 |
Capital expenditures | $ | 433,605 |  |  | $ | 786,635 |  |  | $ | 71,897 |  |  | $ | 1,292,137 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $910.3 million, of which $784.8 million related to sales within the segment, and cost of sales and fuel of $379.5 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $198.4 million and cost of sales and fuel of $20.4 million. (c) - Intersegment revenues for the Natural Gas Gathering and Processing, Natural Gas Liquids and Natural Gas Pipelines segments totaled $1,366.0 million, $20.1 million and $7.0 million, respectively.
Nine Months Ended September 30, 2018 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Thousands of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 9,246,342 |  |  | $ | (1,383,864 | ) |  | $ | 7,862,478 |
Residue natural gas sales |  | 714,950 |  |  | (778 | ) |  | 714,172 |
Gathering, processing and exchange services revenue |  | 418,892 |  |  | (21 | ) |  | 418,871 |
Transportation and storage revenue |  | 433,387 |  |  | (6,959 | ) |  | 426,428 |
Other |  | 34,188 |  |  | 359 |  |  | 34,547 |
Total revenues (a) |  | $ | 10,847,759 |  |  | $ | (1,391,263 | ) |  | $ | 9,456,496 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (8,497,957 | ) |  | $ | 1,393,348 |  |  | $ | (7,104,609 | )
Operating costs |  | $ | (666,951 | ) |  | $ | (3,777 | ) |  | $ | (670,728 | )
Depreciation and amortization |  | $ | (315,433 | ) |  | $ | (2,475 | ) |  | $ | (317,908 | )
Equity in net earnings from investments |  | $ | 116,070 |  |  | $ | — |  |  | $ | 116,070 |
Total assets |  | $ | 17,553,249 |  |  | $ | 358,065 |  |  | $ | 17,911,314 |
Capital expenditures |  | $ | 1,292,137 |  |  | $ | 17,518 |  |  | $ | 1,309,655 |
(a) - Noncustomer revenue for the nine months ended September 30, 2018, totaled $(32.1) million related primarily to losses reclassified from accumulated other comprehensive income from derivatives on commodity contracts.
Nine Months Ended September 30, 2017 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total
| (Thousands of dollars)
Sales to unaffiliated customers | $ | 1,286,669 |  |  | $ | 6,788,451 |  |  | $ | 305,019 |  |  | $ | 8,380,139 |
Intersegment revenues | 843,350 |  |  | 455,197 |  |  | 6,086 |  |  | 1,304,633 |
Total revenues | 2,130,019 |  |  | 7,243,648 |  |  | 311,105 |  |  | 9,684,772 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (1,544,263 | ) |  | (6,188,501 | ) |  | (33,990 | ) |  | (7,766,754 | )
Operating costs | (223,546 | ) |  | (255,220 | ) |  | (91,813 | ) |  | (570,579 | )
Equity in net earnings from investments | 9,843 |  |  | 44,071 |  |  | 65,071 |  |  | 118,985 |
Other | 2,125 |  |  | 1,459 |  |  | 772 |  |  | 4,356 |
Segment adjusted EBITDA | $ | 374,178 |  |  | $ | 845,457 |  |  | $ | 251,145 |  |  | $ | 1,470,780 |
Depreciation and amortization | $ | (137,843 | ) |  | $ | (124,471 | ) |  | $ | (37,906 | ) |  | $ | (300,220 | )
Impairment of long-lived assets and equity investments | $ | (20,240 | ) |  | $ | — |  |  | $ | — |  |  | $ | (20,240 | )
Total assets | $ | 5,385,778 |  |  | $ | 8,515,535 |  |  | $ | 2,040,445 |  |  | $ | 15,941,758 |
Capital expenditures | $ | 185,713 |  |  | $ | 59,813 |  |  | $ | 70,671 |  |  | $ | 316,197 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $878.8 million, of which $752.5 million related to sales within the segment, and cost of sales and fuel of $359.6 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $197.3 million and cost of sales and fuel of $32.9 million.
Nine Months Ended September 30, 2017 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Thousands of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
Sales to unaffiliated customers |  | $ | 8,380,139 |  |  | $ | 1,610 |  |  | $ | 8,381,749 |
Intersegment revenues |  | 1,304,633 |  |  | (1,304,633 | ) |  | — |
Total revenues |  | $ | 9,684,772 |  |  | $ | (1,303,023 | ) |  | $ | 8,381,749 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (7,766,754 | ) |  | $ | 1,302,473 |  |  | $ | (6,464,281 | )
Operating costs |  | $ | (570,579 | ) |  | $ | (38,048 | ) |  | $ | (608,627 | )
Depreciation and amortization |  | $ | (300,220 | ) |  | $ | (2,346 | ) |  | $ | (302,566 | )
Impairment of long-lived assets and equity investments |  | $ | (20,240 | ) |  | $ | — |  |  | $ | (20,240 | )
Equity in net earnings from investments |  | $ | 118,985 |  |  | $ | — |  |  | $ | 118,985 |
Total assets |  | $ | 15,941,758 |  |  | $ | 823,083 |  |  | $ | 16,764,841 |
Capital expenditures |  | $ | 316,197 |  |  | $ | 14,234 |  |  | $ | 330,431 |
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (Thousands of dollars)
Reconciliation of net income to total segment adjusted EBITDA |  |  |  |  |  |  |
Net income | $ | 313,916 |  |  | $ | 166,531 |  |  | $ | 862,144 |  |  | $ | 528,707 |
Add: |  |  |  |  |  |  |
Interest expense, net of capitalized interest | 121,910 |  |  | 126,533 |  |  | 351,131 |  |  | 361,468 |
Depreciation and amortization | 107,383 |  |  | 102,298 |  |  | 317,908 |  |  | 302,566 |
Income taxes | 102,983 |  |  | 97,128 |  |  | 266,285 |  |  | 195,913 |
Impairment charges | — |  |  | 20,240 |  |  | — |  |  | 20,240 |
Noncash compensation expense | 5,829 |  |  | 4,883 |  |  | 27,195 |  |  | 9,790 |
Other corporate costs and noncash items (a) | (3,290 | ) |  | 5,783 |  |  | (5,384 | ) |  | 52,096 |
Total segment adjusted EBITDA | $ | 648,731 |  |  | $ | 523,396 |  |  | $ | 1,819,279 |  |  | $ | 1,470,780 |
(a) - The nine months ended September 30, 2017, includes our April 2017 $20 million contribution of Series E Preferred Stock to the Foundation and costs related to the Merger Transaction of $29.5 million.

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8813-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8736-108599 + Details
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