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SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

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.