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SEGMENTS (Tables)
 6 Months Ended
Jun. 30, 2019
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
June 30, 2019
Natural Gas
Gathering and
Processing
 
Natural Gas
Liquids (a)
 
Natural Gas
Pipelines (b)
 
Total
Segments
 
(Thousands of dollars)
NGL and condensate sales
$
312,757

 
$
1,921,564

 
$
—

 
$
2,234,321

Residue natural gas sales
221,333

 
—

 
41

 
221,374

Gathering, processing and exchange services revenue
43,536

 
105,858

 
—

 
149,394

Transportation and storage revenue
—

 
42,655

 
105,701

 
148,356

Other
4,554

 
2,481

 
11,789

 
18,824

Total revenues (c)
582,180

 
2,072,558

 
117,531

 
2,772,269

 
 
 


 


 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
(309,745
)
 
(1,629,573
)
 
(1,649
)
 
(1,940,967
)
Operating costs
(85,762
)
 
(114,933
)
 
(36,605
)
 
(237,300
)
Equity in net earnings (loss) from investments
(1,621
)
 
15,972

 
19,767

 
34,118

Noncash compensation expense and other
1,571

 
2,738

 
1,500

 
5,809

Segment adjusted EBITDA
$
186,623

 
$
346,762

 
$
100,544

 
$
633,929

 
 
 
 
 
 
 
 
Depreciation and amortization
$
(53,552
)
 
$
(46,346
)
 
$
(14,167
)
 
$
(114,065
)
Capital expenditures
$
213,222

 
$
591,762

 
$
21,406

 
$
826,390

(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $303.4 million, of which $267.3 million related to revenues within the segment, and cost of sales and fuel of $116.9 million.
(b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $72.3 million and cost of sales and fuel of $3.7 million.
(c) - Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $317.9 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.

Three Months Ended
June 30, 2019
 
Total
Segments
 
Other and
Eliminations
 
Total
 
 
(Thousands of dollars)
Reconciliations of total segments to consolidated
 
 
 
 
 
 
NGL and condensate sales
 
$
2,234,321

 
$
(310,527
)
 
$
1,923,794

Residue natural gas sales
 
221,374

 
—

 
221,374

Gathering, processing and exchange services revenue
 
149,394

 
—

 
149,394

Transportation and storage revenue
 
148,356

 
(2,463
)
 
145,893

Other
 
18,824

 
(1,704
)
 
17,120

Total revenues (a)
 
$
2,772,269

 
$
(314,694
)
 
$
2,457,575

 
 
 
 
 
 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
 
$
(1,940,967
)
 
$
315,173

 
$
(1,625,794
)
Operating costs
 
$
(237,300
)
 
$
(413
)
 
$
(237,713
)
Depreciation and amortization
 
$
(114,065
)
 
$
(899
)
 
$
(114,964
)
Equity in net earnings from investments
 
$
34,118

 
$
—

 
$
34,118

Capital expenditures
 
$
826,390

 
$
4,069

 
$
830,459

(a) - Noncustomer revenue for the three months ended June 30, 2019, totaled $18.6 million related primarily to gains reclassified from accumulated other comprehensive loss from commodity derivative contracts.
Three Months Ended
June 30, 2018
Natural Gas
Gathering and
Processing
 
Natural Gas
Liquids (a)
 
Natural Gas
Pipelines (b)
 
Total
Segments
 
(Thousands of dollars)
NGL and condensate sales
$
447,839

 
$
2,469,517

 
$
—

 
$
2,917,356

Residue natural gas sales
208,618

 
—

 
179

 
208,797

Gathering, processing and exchange services revenue
42,801

 
96,470

 
—

 
139,271

Transportation and storage revenue
—

 
45,012

 
93,277

 
138,289

Other
1,671

 
2,931

 
6,336

 
10,938

Total revenues (c)
700,929

 
2,613,930

 
99,792

 
3,414,651

 


 
 
 
 
 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
(442,959
)
 
(2,183,512
)
 
(2,637
)
 
(2,629,108
)
Operating costs
(93,602
)
 
(99,610
)
 
(34,959
)
 
(228,171
)
Equity in net earnings (loss) from investments
(794
)
 
16,582

 
20,782

 
36,570

Noncash compensation expense and other
3,292

 
4,671

 
2,388

 
10,351

Segment adjusted EBITDA
$
166,866

 
$
352,061

 
$
85,366

 
$
604,293

 
 
 
 
 
 
 
 
Depreciation and amortization
$
(48,149
)
 
$
(42,878
)
 
$
(14,426
)
 
$
(105,453
)
Capital expenditures
$
108,842

 
$
216,934

 
$
20,477

 
$
346,253

(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $294.3 million, of which $255.0 million related to revenues within the segment, and cost of sales and fuel of $124.0 million.
(b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $64.5 million and cost of sales and fuel of $5.8 million.
(c) - Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $448.5 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.

Three Months Ended
June 30, 2018
 
Total
Segments
 
Other and
Eliminations
 
Total
 
 
(Thousands of dollars)
Reconciliations of total segments to consolidated
 
 
 
 
 
 
NGL and condensate sales
 
$
2,917,356

 
$
(448,556
)
 
$
2,468,800

Residue natural gas sales
 
208,797

 
(3,028
)
 
205,769

Gathering, processing and exchange services revenue
 
139,271

 
—

 
139,271

Transportation and storage revenue
 
138,289

 
(2,495
)
 
135,794

Other
 
10,938

 
(43
)
 
10,895

Total revenues (a)
 
$
3,414,651

 
$
(454,122
)
 
$
2,960,529

 
 
 
 
 
 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
 
$
(2,629,108
)
 
$
453,290

 
$
(2,175,818
)
Operating costs
 
$
(228,171
)
 
$
(1,982
)
 
$
(230,153
)
Depreciation and amortization
 
$
(105,453
)
 
$
(835
)
 
$
(106,288
)
Equity in net earnings from investments
 
$
36,570

 
$
—

 
$
36,570

Capital expenditures
 
$
346,253

 
$
4,632

 
$
350,885

(a) - Noncustomer revenue for the three months ended June 30, 2018, totaled $(5.4) million related primarily to losses reclassified from accumulated other comprehensive loss from commodity derivative contracts.
Six Months Ended
June 30, 2019
Natural Gas
Gathering and
Processing
 
Natural Gas
Liquids (a)
 
Natural Gas
Pipelines (b)
 
Total
Segments
 
(Thousands of dollars)
NGL and condensate sales
$
645,089

 
$
4,079,667

 
$
—

 
$
4,724,756

Residue natural gas sales
540,369

 
—

 
1,011

 
541,380

Gathering, processing and exchange services revenue
83,278

 
204,392

 
—

 
287,670

Transportation and storage revenue
—

 
94,977

 
209,171

 
304,148

Other
8,105

 
5,022

 
23,749

 
36,876

Total revenues (c)
1,276,841

 
4,384,058

 
233,931

 
5,894,830

 
 
 
 
 
 
 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
(760,658
)
 
(3,476,246
)
 
(3,404
)
 
(4,240,308
)
Operating costs
(180,009
)
 
(225,371
)
 
(72,873
)
 
(478,253
)
Equity in net earnings (loss) from investments
(2,823
)
 
33,516

 
46,906

 
77,599

Noncash compensation expense and other
5,516

 
8,444

 
2,632

 
16,592

Segment adjusted EBITDA
$
338,867

 
$
724,401

 
$
207,192

 
$
1,270,460

 
 
 
 
 
 
 
 
Depreciation and amortization
$
(106,233
)
 
$
(92,747
)
 
$
(28,323
)
 
$
(227,303
)
Total assets
$
6,343,968

 
$
10,694,485

 
$
2,083,940

 
$
19,122,393

Capital expenditures
$
428,370

 
$
1,231,100

 
$
50,094

 
$
1,709,564

(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $626.5 million, of which $537.3 million related to revenues within the segment, and cost of sales and fuel of $235.4 million.
(b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $142.4 million and cost of sales and fuel of $9.3 million.
(c) - Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $653.7 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.

Six Months Ended
June 30, 2019
 
Total
Segments
 
Other and
Eliminations
 
Total
 
 
(Thousands of dollars)
Reconciliations of total segments to consolidated
 
 
 
 
 
 
NGL and condensate sales
 
$
4,724,756

 
$
(648,878
)
 
$
4,075,878

Residue natural gas sales
 
541,380

 
—

 
541,380

Gathering, processing and exchange services revenue
 
287,670

 
—

 
287,670

Transportation and storage revenue
 
304,148

 
(4,984
)
 
299,164

Other
 
36,876

 
(3,435
)
 
33,441

Total revenues (a)
 
$
5,894,830

 
$
(657,297
)
 
$
5,237,533

 
 
 
 
 
 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
 
$
(4,240,308
)
 
$
658,137

 
$
(3,582,171
)
Operating costs
 
$
(478,253
)
 
$
(201
)
 
$
(478,454
)
Depreciation and amortization
 
$
(227,303
)
 
$
(1,819
)
 
$
(229,122
)
Equity in net earnings from investments
 
$
77,599

 
$
—

 
$
77,599

Total assets
 
$
19,122,393

 
$
629,201

 
$
19,751,594

Capital expenditures
 
$
1,709,564

 
$
10,600

 
$
1,720,164

(a) - Noncustomer revenue for the six months ended June 30, 2019, totaled $40.9 million related primarily to gains reclassified from accumulated other comprehensive loss from commodity derivative contracts.

Six Months Ended
June 30, 2018
Natural Gas
Gathering and
Processing
 
Natural Gas
Liquids (a)
 
Natural Gas
Pipelines (b)
 
Total
Segments
 
(Thousands of dollars)
NGL and condensate sales
$
860,996

 
$
5,022,287

 
$
—

 
$
5,883,283

Residue natural gas sales
463,615

 
—

 
5,098

 
468,713

Gathering, processing and exchange services revenue
81,230

 
179,728

 
—

 
260,958

Transportation and storage revenue
—

 
98,490

 
191,615

 
290,105

Other
3,079

 
5,894

 
12,990

 
21,963

Total revenues (c)
1,408,920

 
5,306,399

 
209,703

 
6,925,022

 
 
 
 
 
 
 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
(935,581
)
 
(4,464,584
)
 
(8,091
)
 
(5,408,256
)
Operating costs
(181,961
)
 
(188,202
)
 
(68,149
)
 
(438,312
)
Equity in net earnings from investments
874

 
33,006

 
42,877

 
76,757

Noncash compensation expense and other
5,165

 
7,521

 
2,651

 
15,337

Segment adjusted EBITDA
$
297,417

 
$
694,140

 
$
178,991

 
$
1,170,548

 
 
 
 
 


 
 
Depreciation and amortization
$
(95,897
)
 
$
(85,305
)
 
$
(27,695
)
 
$
(208,897
)
Total assets
$
5,585,519

 
$
8,898,255

 
$
2,073,043

 
$
16,556,817

Capital expenditures
$
220,571

 
$
341,855

 
$
40,375

 
$
602,801

(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $594.3 million, of which $508.4 million related to revenues within the segment, and cost of sales and fuel of $246.8 million.
(b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $132.5 million and cost of sales and fuel of $14.9 million.
(c) - Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $846.3 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.

Six Months Ended
June 30, 2018
 
Total
Segments
 
Other and
Eliminations
 
Total
 
 
(Thousands of dollars)
Reconciliations of total segments to consolidated
 
 
 
 
 
 
NGL and condensate sales
 
$
5,883,283

 
$
(857,466
)
 
$
5,025,817

Residue natural gas sales
 
468,713

 
(778
)
 
467,935

Gathering, processing and exchange services revenue
 
260,958

 
(21
)
 
260,937

Transportation and storage revenue
 
290,105

 
(4,589
)
 
285,516

Other
 
21,963

 
438

 
22,401

Total revenues (a)
 
$
6,925,022

 
$
(862,416
)
 
$
6,062,606

 
 
 
 
 
 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
 
$
(5,408,256
)
 
$
864,412

 
$
(4,543,844
)
Operating costs
 
$
(438,312
)
 
$
(2,045
)
 
$
(440,357
)
Depreciation and amortization
 
$
(208,897
)
 
$
(1,628
)
 
$
(210,525
)
Equity in net earnings from investments
 
$
76,757

 
$
—

 
$
76,757

Total assets
 
$
16,556,817

 
$
356,903

 
$
16,913,720

Capital expenditures
 
$
602,801

 
$
12,551

 
$
615,352

(a) - Noncustomer revenue for the six months ended June 30, 2018, totaled $(14.4) million related primarily to losses reclassified from accumulated other comprehensive loss from commodity derivative contracts.

 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
 
(Thousands of dollars)
Reconciliation of net income to total segment adjusted EBITDA
 
 
 
 
 
 
 
Net income
$
311,963

 
$
282,179

 
$
649,171

 
$
548,228

Add:
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
117,493

 
113,496

 
232,913

 
229,221

Depreciation and amortization
114,964

 
106,288

 
229,122

 
210,525

Income taxes
98,935

 
87,531

 
176,869

 
163,302

Noncash compensation expense
5,115

 
12,140

 
10,655

 
21,366

Other corporate costs and noncash items
(14,541
)
 
2,659

 
(28,270
)
 
(2,094
)
Total segment adjusted EBITDA
$
633,929

 
$
604,293

 
$
1,270,460

 
$
1,170,548