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SEGMENTS (Tables)
 9 Months Ended
Sep. 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
September 30, 2019
Natural Gas
Gathering and
Processing
 
Natural Gas
Liquids (a)
 
Natural Gas
Pipelines (b)
 
Total
Segments
 
(Thousands of dollars)
NGL and condensate sales
$
244,932

 
$
1,746,630

 
$
—

 
$
1,991,562

Residue natural gas sales
185,303

 
—

 
231

 
185,534

Gathering, processing and exchange services revenue
42,795

 
105,179

 
—

 
147,974

Transportation and storage revenue
—

 
46,407

 
108,384

 
154,791

Other
3,182

 
2,291

 
12,933

 
18,406

Total revenues (c)
476,212

 
1,900,507

 
121,548

 
2,498,267

 
 
 


 


 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
(210,739
)
 
(1,438,206
)
 
(381
)
 
(1,649,326
)
Operating costs
(91,227
)
 
(114,903
)
 
(40,170
)
 
(246,300
)
Equity in net earnings (loss) from investments
(1,837
)
 
15,890

 
23,523

 
37,576

Noncash compensation expense and other
2,883

 
4,174

 
(701
)
 
6,356

Segment adjusted EBITDA
$
175,292

 
$
367,462

 
$
103,819

 
$
646,573

 
 
 
 
 
 
 
 
Depreciation and amortization
$
(55,781
)
 
$
(50,419
)
 
$
(14,330
)
 
$
(120,530
)
Capital expenditures
$
245,745

 
$
738,038

 
$
27,767

 
$
1,011,550

(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $379.7 million, of which $315.7 million related to revenues within the segment, and cost of sales and fuel of $129.5 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 $5.1 million.
(c) - Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $244.2 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.

Three Months Ended
September 30, 2019
 
Total
Segments
 
Other and
Eliminations
 
Total
 
 
(Thousands of dollars)
Reconciliations of total segments to consolidated
 
 
 
 
 
 
NGL and condensate sales
 
$
1,991,562

 
$
(230,080
)
 
$
1,761,482

Residue natural gas sales
 
185,534

 
(567
)
 
184,967

Gathering, processing and exchange services revenue
 
147,974

 
—

 
147,974

Transportation and storage revenue
 
154,791

 
(2,594
)
 
152,197

Other
 
18,406

 
(1,798
)
 
16,608

Total revenues (a)
 
$
2,498,267

 
$
(235,039
)
 
$
2,263,228

 
 
 
 
 
 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
 
$
(1,649,326
)
 
$
234,798

 
$
(1,414,528
)
Operating costs
 
$
(246,300
)
 
$
1,165

 
$
(245,135
)
Depreciation and amortization
 
$
(120,530
)
 
$
(900
)
 
$
(121,430
)
Equity in net earnings from investments
 
$
37,576

 
$
—

 
$
37,576

Capital expenditures
 
$
1,011,550

 
$
7,624

 
$
1,019,174

(a) - Noncustomer revenue for the three months ended September 30, 2019, totaled $89.0 million related primarily to gains from commodity derivative contracts.
Three Months Ended
September 30, 2018
Natural Gas
Gathering and
Processing
 
Natural Gas
Liquids (a)
 
Natural Gas
Pipelines (b)
 
Total
Segments
 
(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 revenues 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 segment totaled $519.7 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.

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 from derivatives on commodity contracts.

Nine Months Ended
September 30, 2019
Natural Gas
Gathering and
Processing
 
Natural Gas
Liquids (a)
 
Natural Gas
Pipelines (b)
 
Total
Segments
 
(Thousands of dollars)
NGL and condensate sales
$
890,021

 
$
5,826,297

 
$
—

 
$
6,716,318

Residue natural gas sales
725,672

 
—

 
1,242

 
726,914

Gathering, processing and exchange services revenue
126,073

 
309,571

 
—

 
435,644

Transportation and storage revenue
—

 
141,384

 
317,555

 
458,939

Other
11,287

 
7,313

 
36,682

 
55,282

Total revenues (c)
1,753,053

 
6,284,565

 
355,479

 
8,393,097

 
 
 
 
 
 
 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
(971,397
)
 
(4,914,452
)
 
(3,785
)
 
(5,889,634
)
Operating costs
(271,236
)
 
(340,274
)
 
(113,043
)
 
(724,553
)
Equity in net earnings (loss) from investments
(4,660
)
 
49,406

 
70,429

 
115,175

Noncash compensation expense and other
8,399

 
12,618

 
1,931

 
22,948

Segment adjusted EBITDA
$
514,159

 
$
1,091,863

 
$
311,011

 
$
1,917,033

 
 
 
 
 
 
 
 
Depreciation and amortization
$
(162,014
)
 
$
(143,166
)
 
$
(42,653
)
 
$
(347,833
)
Total assets
$
6,546,417

 
$
11,662,489

 
$
2,083,773

 
$
20,292,679

Capital expenditures
$
674,115

 
$
1,969,138

 
$
77,861

 
$
2,721,114

(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $1.0 billion, of which $853.0 million related to revenues within the segment, and cost of sales and fuel of $364.9 million.
(b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $214.7 million and cost of sales and fuel of $14.4 million.
(c) - Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $897.9 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.

Nine Months Ended
September 30, 2019
 
Total
Segments
 
Other and
Eliminations
 
Total
 
 
(Thousands of dollars)
Reconciliations of total segments to consolidated
 
 
 
 
 
 
NGL and condensate sales
 
$
6,716,318

 
$
(878,958
)
 
$
5,837,360

Residue natural gas sales
 
726,914

 
(567
)
 
726,347

Gathering, processing and exchange services revenue
 
435,644

 
—

 
435,644

Transportation and storage revenue
 
458,939

 
(7,578
)
 
451,361

Other
 
55,282

 
(5,233
)
 
50,049

Total revenues (a)
 
$
8,393,097

 
$
(892,336
)
 
$
7,500,761

 
 
 
 
 
 
 
Cost of sales and fuel (exclusive of depreciation and operating costs)
 
$
(5,889,634
)
 
$
892,935

 
$
(4,996,699
)
Operating costs
 
$
(724,553
)
 
$
964

 
$
(723,589
)
Depreciation and amortization
 
$
(347,833
)
 
$
(2,719
)
 
$
(350,552
)
Equity in net earnings from investments
 
$
115,175

 
$
—

 
$
115,175

Total assets
 
$
20,292,679

 
$
1,043,228

 
$
21,335,907

Capital expenditures
 
$
2,721,114

 
$
18,224

 
$
2,739,338

(a) - Noncustomer revenue for the nine months ended September 30, 2019, totaled $129.9 million related primarily to gains from commodity derivative contracts.

Nine Months Ended
September 30, 2018
Natural Gas
Gathering and
Processing
 
Natural Gas
Liquids (a)
 
Natural Gas
Pipelines (b)
 
Total
Segments
 
(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 revenues 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 segment totaled $1.4 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.

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 from derivatives on commodity contracts.

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(Thousands of dollars)
Reconciliation of net income to total segment adjusted EBITDA
 
 
 
 
 
 
 
Net income
$
309,155

 
$
313,916

 
$
958,326

 
$
862,144

Add:
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
129,577

 
121,910

 
362,490

 
351,131

Depreciation and amortization
121,430

 
107,383

 
350,552

 
317,908

Income taxes
97,365

 
102,983

 
274,234

 
266,285

Noncash compensation expense
9,757

 
5,829

 
20,412

 
27,195

Other corporate costs and noncash items (a)
(20,711
)
 
(3,290
)
 
(48,981
)
 
(5,384
)
Total segment adjusted EBITDA
$
646,573

 
$
648,731

 
$
1,917,033

 
$
1,819,279

(a) - Includes equity AFUDC related to our capital-growth projects.