XML 51 R38.htm IDEA: XBRL DOCUMENT
v3.20.2

SEGMENTS (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2020
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, 2020 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total Segments
| (Thousands of dollars)
NGL and condensate sales | $ | 109,581 |  |  | $ | 1,174,580 |  |  | $ | — |  |  | $ | 1,284,161 |
Residue natural gas sales | 150,892 |  |  | — |  |  | — |  |  | 150,892 |
Gathering, processing and exchange services revenue | 35,949 |  |  | 118,174 |  |  | — |  |  | 154,123 |
Transportation and storage revenue | — |  |  | 40,881 |  |  | 121,777 |  |  | 162,658 |
Other | 3,387 |  |  | 2,079 |  |  | 281 |  |  | 5,747 |
Total revenues (c) | 299,809 |  |  | 1,335,714 |  |  | 122,058 |  |  | 1,757,581 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (132,221 | ) |  | (905,154 | ) |  | (168 | ) |  | (1,037,543 | )
Operating costs | (78,668 | ) |  | (106,977 | ) |  | (33,092 | ) |  | (218,737 | )
Equity in net earnings (loss) from investments | (2,149 | ) |  | 7,797 |  |  | 19,680 |  |  | 25,328 |
Noncash compensation expense and other | 1,978 |  |  | 6,262 |  |  | 1,355 |  |  | 9,595 |
Segment adjusted EBITDA | $ | 88,749 |  |  | $ | 337,642 |  |  | $ | 109,833 |  |  | $ | 536,224 |
Depreciation and amortization | $ | (55,419 | ) |  | $ | (69,065 | ) |  | $ | (14,925 | ) |  | $ | (139,409 | )
Capital expenditures | $ | 118,171 |  |  | $ | 459,807 |  |  | $ | 10,910 |  |  | $ | 588,888 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $477.2 million, of which $432.6 million related to revenues within the segment, and cost of sales and fuel of $117.1 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $79.9 million and cost of sales and fuel of $6.7 million. (c) - Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $108.2 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Three Months Ended June 30, 2020 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Thousands of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 1,284,161 |  |  | $ | (88,967 | ) |  | $ | 1,195,194 |
Residue natural gas sales |  | 150,892 |  |  | (3,931 | ) |  | 146,961 |
Gathering, processing and exchange services revenue |  | 154,123 |  |  | — |  |  | 154,123 |
Transportation and storage revenue |  | 162,658 |  |  | (3,627 | ) |  | 159,031 |
Other |  | 5,747 |  |  | (327 | ) |  | 5,420 |
Total revenues (a) |  | $ | 1,757,581 |  |  | $ | (96,852 | ) |  | $ | 1,660,729 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (1,037,543 | ) |  | $ | 97,085 |  |  | $ | (940,458 | )
Operating costs |  | $ | (218,737 | ) |  | $ | (5,727 | ) |  | $ | (224,464 | )
Depreciation and amortization |  | $ | (139,409 | ) |  | $ | (1,007 | ) |  | $ | (140,416 | )
Equity in net earnings from investments |  | $ | 25,328 |  |  | $ | — |  |  | $ | 25,328 |
Capital expenditures |  | $ | 588,888 |  |  | $ | 5,394 |  |  | $ | 594,282 |
(a) - Noncustomer revenue for the three months ended June 30, 2020, totaled $18.8 million related primarily to gains from derivatives on commodity contracts.
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 |  |  | 117,240 |  |  | 159,895 |
Other | 4,554 |  |  | 2,481 |  |  | 250 |  |  | 7,285 |
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 |  | 159,895 |  |  | (3,880 | ) |  | 156,015 |
Other |  | 7,285 |  |  | (287 | ) |  | 6,998 |
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 from derivatives on commodity contracts.
Six Months Ended June 30, 2020 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total Segments
| (Thousands of dollars)
NGL and condensate sales | $ | 329,498 |  |  | $ | 2,771,291 |  |  | $ | — |  |  | $ | 3,100,789 |
Residue natural gas sales | 339,943 |  |  | — |  |  | 2,035 |  |  | 341,978 |
Gathering, processing and exchange services revenue | 73,886 |  |  | 238,710 |  |  | — |  |  | 312,596 |
Transportation and storage revenue | — |  |  | 91,636 |  |  | 240,141 |  |  | 331,777 |
Other | 6,462 |  |  | 4,669 |  |  | 665 |  |  | 11,796 |
Total revenues (c) | 749,789 |  |  | 3,106,306 |  |  | 242,841 |  |  | 4,098,936 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (334,391 | ) |  | (2,183,908 | ) |  | (1,707 | ) |  | (2,520,006 | )
Operating costs | (163,138 | ) |  | (196,548 | ) |  | (66,399 | ) |  | (426,085 | )
Equity in net earnings (loss) from investments | (1,343 | ) |  | 23,065 |  |  | 48,233 |  |  | 69,955 |
Noncash compensation expense and other | (2,520 | ) |  | (357 | ) |  | (611 | ) |  | (3,488 | )
Segment adjusted EBITDA | $ | 248,397 |  |  | $ | 748,558 |  |  | $ | 222,357 |  |  | $ | 1,219,312 |
Depreciation and amortization | $ | (114,175 | ) |  | $ | (126,906 | ) |  | $ | (29,694 | ) |  | $ | (270,775 | )
Impairment charges | $ | (564,353 | ) |  | $ | (77,401 | ) |  | $ | — |  |  | $ | (641,754 | )
Investments in unconsolidated affiliates | $ | 2,250 |  |  | $ | 427,032 |  |  | $ | 360,753 |  |  | $ | 790,035 |
Total assets | $ | 6,426,121 |  |  | $ | 13,183,168 |  |  | $ | 2,064,197 |  |  | $ | 21,673,486 |
Capital expenditures | $ | 299,781 |  |  | $ | 1,205,990 |  |  | $ | 27,500 |  |  | $ | 1,533,271 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $912.3 million, of which $810.8 million related to revenues within the segment, and cost of sales and fuel of $237.5 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $153.8 million and cost of sales and fuel of $12.8 million. (c) - Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $321.5 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Six Months Ended June 30, 2020 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Thousands of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 3,100,789 |  |  | $ | (288,439 | ) |  | $ | 2,812,350 |
Residue natural gas sales |  | 341,978 |  |  | (4,963 | ) |  | 337,015 |
Gathering, processing and exchange services revenue |  | 312,596 |  |  | — |  |  | 312,596 |
Transportation and storage revenue |  | 331,777 |  |  | (7,436 | ) |  | 324,341 |
Other |  | 11,796 |  |  | (697 | ) |  | 11,099 |
Total revenues (a) |  | $ | 4,098,936 |  |  | $ | (301,535 | ) |  | $ | 3,797,401 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (2,520,006 | ) |  | $ | 302,620 |  |  | $ | (2,217,386 | )
Operating costs |  | $ | (426,085 | ) |  | $ | (5,419 | ) |  | $ | (431,504 | )
Depreciation and amortization |  | $ | (270,775 | ) |  | $ | (1,994 | ) |  | $ | (272,769 | )
Impairment charges |  | $ | (641,754 | ) |  | $ | — |  |  | $ | (641,754 | )
Equity in net earnings from investments |  | $ | 69,955 |  |  | $ | — |  |  | $ | 69,955 |
Investments in unconsolidated affiliates |  | $ | 790,035 |  |  | $ | — |  |  | $ | 790,035 |
Total assets |  | $ | 21,673,486 |  |  | $ | 1,318,981 |  |  | $ | 22,992,467 |
Capital expenditures |  | $ | 1,533,271 |  |  | $ | 10,690 |  |  | $ | 1,543,961 |
(a) - Noncustomer revenue for the six months ended June 30, 2020, totaled $99.0 million related primarily to gains from derivatives on commodity 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 |  |  | 230,105 |  |  | 325,082 |
Other | 8,105 |  |  | 5,022 |  |  | 2,815 |  |  | 15,942 |
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 | )
Investments in unconsolidated affiliates | $ | 37,793 |  |  | $ | 443,104 |  |  | $ | 400,187 |  |  | $ | 881,084 |
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 |  | 325,082 |  |  | (7,817 | ) |  | 317,265 |
Other |  | 15,942 |  |  | (602 | ) |  | 15,340 |
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 |
Investments in unconsolidated affiliates |  | $ | 881,084 |  |  | $ | — |  |  | $ | 881,084 |
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 from derivatives on commodity contracts.
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
| (Thousands of dollars)
Reconciliation of net income (loss) to total segment adjusted EBITDA |  |  |  |  |  |  |
Net income (loss) | $ | 134,321 |  |  | $ | 311,963 |  |  | $ | (7,536 | ) |  | $ | 649,171 |
Add: |  |  |  |  |  |  |
Interest expense, net of capitalized interest | 218,968 |  |  | 117,493 |  |  | 359,584 |  |  | 232,913 |
Depreciation and amortization | 140,416 |  |  | 114,964 |  |  | 272,769 |  |  | 229,122 |
Income tax expense (benefit) | 43,140 |  |  | 98,935 |  |  | (12,255 | ) |  | 176,869 |
Impairment charges | — |  |  | — |  |  | 641,754 |  |  | — |
Noncash compensation expense (benefit) | 957 |  |  | 5,115 |  |  | (345 | ) |  | 10,655 |
Other corporate costs and equity AFUDC (a) | (1,578 | ) |  | (14,541 | ) |  | (34,659 | ) |  | (28,270 | )
Total segment adjusted EBITDA | $ | 536,224 |  |  | $ | 633,929 |  |  | $ | 1,219,312 |  |  | $ | 1,270,460 |
(a) - The three and six months ended June 30, 2020, include corporate gains of $4.3 million and $20.0 million, respectively, on extinguishment of debt related to open market repurchases.

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingDisclosureOfEntitysReportableSegmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration