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SEGMENTS (Tables) | 9 Months Ended
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Sep. 30, 2022
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, 2022 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total Segments
| (Thousands of dollars)
NGL and condensate sales | $ | 990,020 |  |  | $ | 4,749,230 |  |  | $ | — |  |  | $ | 5,739,250 |
Residue natural gas sales | 824,558 |  |  | — |  |  | 2,889 |  |  | 827,447 |
Gathering, processing and exchange services revenue | 36,571 |  |  | 139,302 |  |  | — |  |  | 175,873 |
Transportation and storage revenue | — |  |  | 39,884 |  |  | 133,789 |  |  | 173,673 |
Other | 7,453 |  |  | 2,533 |  |  | 250 |  |  | 10,236 |
Total revenues (c) | 1,858,602 |  |  | 4,930,949 |  |  | 136,928 |  |  | 6,926,479 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (1,460,727) |  |  | (4,316,327) |  |  | (4,460) |  |  | (5,781,514) |
Operating costs | (98,197) |  |  | (144,586) |  |  | (43,823) |  |  | (286,606) |
Equity in net earnings from investments | 1,676 |  |  | 11,159 |  |  | 26,345 |  |  | 39,180 |
Noncash compensation expense and other | 2,512 |  |  | 3,648 |  |  | 2,096 |  |  | 8,256 |
Segment adjusted EBITDA | $ | 303,866 |  |  | $ | 484,843 |  |  | $ | 117,086 |  |  | $ | 905,795 |
Depreciation and amortization | $ | (65,107) |  |  | $ | (75,558) |  |  | $ | (15,344) |  |  | $ | (156,009) |
Capital expenditures | $ | 104,754 |  |  | $ | 169,175 |  |  | $ | 39,644 |  |  | $ | 313,573 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $671.8 million, of which $620.9 million related to revenues within the segment, and cost of sales and fuel of $205.0 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $73.2 million and cost of sales and fuel of $10.3 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $1.0 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Three Months Ended September 30, 2022 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Thousands of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 5,739,250 |  |  | $ | (1,005,882) |  |  | $ | 4,733,368 |
Residue natural gas sales |  | 827,447 |  |  | — |  |  | 827,447 |
Gathering, processing and exchange services revenue |  | 175,873 |  |  | — |  |  | 175,873 |
Transportation and storage revenue |  | 173,673 |  |  | (2,214) |  |  | 171,459 |
Other |  | 10,236 |  |  | (4,852) |  |  | 5,384 |
Total revenues (a) |  | $ | 6,926,479 |  |  | $ | (1,012,948) |  |  | $ | 5,913,531 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (5,781,514) |  |  | $ | 1,008,840 |  |  | $ | (4,772,674) |
Operating costs |  | $ | (286,606) |  |  | $ | 422 |  |  | $ | (286,184) |
Depreciation and amortization |  | $ | (156,009) |  |  | $ | (1,093) |  |  | $ | (157,102) |
Equity in net earnings from investments |  | $ | 39,180 |  |  | $ | — |  |  | $ | 39,180 |
Capital expenditures |  | $ | 313,573 |  |  | $ | 13,158 |  |  | $ | 326,731 |
(a) - Noncustomer revenue for the three months ended September 30, 2022, totaled $(56.5) million related primarily to losses from derivatives on commodity contracts.
Three Months Ended September 30, 2021 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total Segments
| (Thousands of dollars)
NGL and condensate sales | $ | 815,993 |  |  | $ | 3,853,078 |  |  | $ | — |  |  | $ | 4,669,071 |
Residue natural gas sales | 370,801 |  |  | — |  |  | 19 |  |  | 370,820 |
Gathering, processing and exchange services revenue | 35,395 |  |  | 133,574 |  |  | — |  |  | 168,969 |
Transportation and storage revenue | — |  |  | 40,465 |  |  | 120,294 |  |  | 160,759 |
Other | 6,294 |  |  | 2,499 |  |  | 167 |  |  | 8,960 |
Total revenues (c) | 1,228,483 |  |  | 4,029,616 |  |  | 120,480 |  |  | 5,378,579 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (913,931) |  |  | (3,377,903) |  |  | (344) |  |  | (4,292,178) |
Operating costs | (95,210) |  |  | (128,809) |  |  | (41,020) |  |  | (265,039) |
Equity in net earnings from investments | 499 |  |  | 5,384 |  |  | 22,690 |  |  | 28,573 |
Noncash compensation expense and other | 9,816 |  |  | 3,871 |  |  | 920 |  |  | 14,607 |
Segment adjusted EBITDA | $ | 229,657 |  |  | $ | 532,159 |  |  | $ | 102,726 |  |  | $ | 864,542 |
Depreciation and amortization | $ | (63,750) |  |  | $ | (74,986) |  |  | $ | (14,821) |  |  | $ | (153,557) |
Capital expenditures | $ | 80,839 |  |  | $ | 53,778 |  |  | $ | 24,587 |  |  | $ | 159,204 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $618.8 million, of which $567.7 million related to revenues within the segment, and cost of sales and fuel of $160.0 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $72.4 million and cost of sales and fuel of $3.9 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $837.7 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Three Months Ended September 30, 2021 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Thousands of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 4,669,071 |  |  | $ | (838,279) |  |  | $ | 3,830,792 |
Residue natural gas sales |  | 370,820 |  |  | — |  |  | 370,820 |
Gathering, processing and exchange services revenue |  | 168,969 |  |  | — |  |  | 168,969 |
Transportation and storage revenue |  | 160,759 |  |  | (3,500) |  |  | 157,259 |
Other |  | 8,960 |  |  | (625) |  |  | 8,335 |
Total revenues (a) |  | $ | 5,378,579 |  |  | $ | (842,404) |  |  | $ | 4,536,175 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (4,292,178) |  |  | $ | 843,051 |  |  | $ | (3,449,127) |
Operating costs |  | $ | (265,039) |  |  | $ | (78) |  |  | $ | (265,117) |
Depreciation and amortization |  | $ | (153,557) |  |  | $ | (985) |  |  | $ | (154,542) |
Equity in net earnings from investments |  | $ | 28,573 |  |  | $ | — |  |  | $ | 28,573 |
Capital expenditures |  | $ | 159,204 |  |  | $ | 7,003 |  |  | $ | 166,207 |
(a) - Noncustomer revenue for the three months ended September 30, 2021, totaled $(178.7) million related primarily to losses from derivatives on commodity contracts.
Nine Months Ended September 30, 2022 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total Segments
| (Thousands of dollars)
NGL and condensate sales | $ | 3,033,568 |  |  | $ | 14,308,502 |  |  | $ | — |  |  | $ | 17,342,070 |
Residue natural gas sales | 2,035,330 |  |  | — |  |  | 30,254 |  |  | 2,065,584 |
Gathering, processing and exchange services revenue | 104,072 |  |  | 415,073 |  |  | — |  |  | 519,145 |
Transportation and storage revenue | — |  |  | 126,988 |  |  | 387,211 |  |  | 514,199 |
Other | 17,558 |  |  | 7,920 |  |  | 689 |  |  | 26,167 |
Total revenues (c) | 5,190,528 |  |  | 14,858,483 |  |  | 418,154 |  |  | 20,467,165 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (4,147,901) |  |  | (12,948,769) |  |  | (22,196) |  |  | (17,118,866) |
Operating costs | (289,376) |  |  | (416,491) |  |  | (126,231) |  |  | (832,098) |
Equity in net earnings from investments | 4,906 |  |  | 24,986 |  |  | 81,258 |  |  | 111,150 |
Noncash compensation expense and other | 12,607 |  |  | 11,624 |  |  | 5,610 |  |  | 29,841 |
Segment adjusted EBITDA | $ | 770,764 |  |  | $ | 1,529,833 |  |  | $ | 356,595 |  |  | $ | 2,657,192 |
Depreciation and amortization | $ | (192,960) |  |  | $ | (225,865) |  |  | $ | (46,633) |  |  | $ | (465,458) |
Investments in unconsolidated affiliates | $ | 28,262 |  |  | $ | 413,877 |  |  | $ | 361,668 |  |  | $ | 803,807 |
Total assets | $ | 7,079,315 |  |  | $ | 14,987,107 |  |  | $ | 2,204,942 |  |  | $ | 24,271,364 |
Capital expenditures | $ | 321,469 |  |  | $ | 444,875 |  |  | $ | 82,135 |  |  | $ | 848,479 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $1.9 billion, of which $1.7 billion related to revenues within the segment, and cost of sales and fuel of $503.3 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $240.5 million and cost of sales and fuel of $32.6 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $3.1 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Nine Months Ended September 30, 2022 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Thousands of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 17,342,070 |  |  | $ | (3,095,907) |  |  | $ | 14,246,163 |
Residue natural gas sales |  | 2,065,584 |  |  | (332) |  |  | 2,065,252 |
Gathering, processing and exchange services revenue |  | 519,145 |  |  | — |  |  | 519,145 |
Transportation and storage revenue |  | 514,199 |  |  | (6,356) |  |  | 507,843 |
Other |  | 26,167 |  |  | (9,709) |  |  | 16,458 |
Total revenues (a) |  | $ | 20,467,165 |  |  | $ | (3,112,304) |  |  | $ | 17,354,861 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (17,118,866) |  |  | $ | 3,102,245 |  |  | $ | (14,016,621) |
Operating costs |  | $ | (832,098) |  |  | $ | 4,533 |  |  | $ | (827,565) |
Depreciation and amortization |  | $ | (465,458) |  |  | $ | (3,259) |  |  | $ | (468,717) |
Equity in net earnings from investments |  | $ | 111,150 |  |  | $ | — |  |  | $ | 111,150 |
Investments in unconsolidated affiliates |  | $ | 803,807 |  |  | $ | — |  |  | $ | 803,807 |
Total assets |  | $ | 24,271,364 |  |  | $ | 167,879 |  |  | $ | 24,439,243 |
Capital expenditures |  | $ | 848,479 |  |  | $ | 37,562 |  |  | $ | 886,041 |
(a) - Noncustomer revenue for the nine months ended September 30, 2022, totaled $(363.9) million related primarily to losses from derivatives on commodity contracts.
Nine Months Ended September 30, 2021 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total Segments
| (Thousands of dollars)
NGL and condensate sales | $ | 1,874,183 |  |  | $ | 9,097,512 |  |  | $ | — |  |  | $ | 10,971,695 |
Residue natural gas sales | 940,850 |  |  | — |  |  | 115,478 |  |  | 1,056,328 |
Gathering, processing and exchange services revenue | 101,221 |  |  | 376,429 |  |  | — |  |  | 477,650 |
Transportation and storage revenue | — |  |  | 127,057 |  |  | 365,578 |  |  | 492,635 |
Other | 15,422 |  |  | 38,161 |  |  | 682 |  |  | 54,265 |
Total revenues (c) | 2,931,676 |  |  | 9,639,159 |  |  | 481,738 |  |  | 13,052,573 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (2,019,723) |  |  | (7,838,141) |  |  | (10,901) |  |  | (9,868,765) |
Operating costs | (266,237) |  |  | (382,012) |  |  | (121,843) |  |  | (770,092) |
Equity in net earnings from investments | 2,669 |  |  | 14,078 |  |  | 70,866 |  |  | 87,613 |
Noncash compensation expense and other | 15,254 |  |  | 14,994 |  |  | 3,737 |  |  | 33,985 |
Segment adjusted EBITDA | $ | 663,639 |  |  | $ | 1,448,078 |  |  | $ | 423,597 |  |  | $ | 2,535,314 |
Depreciation and amortization | $ | (198,050) |  |  | $ | (223,679) |  |  | $ | (43,786) |  |  | $ | (465,515) |
Investments in unconsolidated affiliates | $ | 25,734 |  |  | $ | 417,573 |  |  | $ | 353,926 |  |  | $ | 797,233 |
Total assets | $ | 6,725,753 |  |  | $ | 14,898,568 |  |  | $ | 2,129,406 |  |  | $ | 23,753,727 |
Capital expenditures | $ | 177,362 |  |  | $ | 225,766 |  |  | $ | 73,540 |  |  | $ | 476,668 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $1.8 billion, of which $1.6 billion related to revenues within the segment, and cost of sales and fuel of $449.1 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $323.2 million and cost of sales and fuel of $20.5 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $1.9 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Nine Months Ended September 30, 2021 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Thousands of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 10,971,695 |  |  | $ | (1,920,483) |  |  | $ | 9,051,212 |
Residue natural gas sales |  | 1,056,328 |  |  | — |  |  | 1,056,328 |
Gathering, processing and exchange services revenue |  | 477,650 |  |  | — |  |  | 477,650 |
Transportation and storage revenue |  | 492,635 |  |  | (10,541) |  |  | 482,094 |
Other |  | 54,265 |  |  | (1,731) |  |  | 52,534 |
Total revenues (a) |  | $ | 13,052,573 |  |  | $ | (1,932,755) |  |  | $ | 11,119,818 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (9,868,765) |  |  | $ | 1,931,149 |  |  | $ | (7,937,616) |
Operating costs |  | $ | (770,092) |  |  | $ | (881) |  |  | $ | (770,973) |
Depreciation and amortization |  | $ | (465,515) |  |  | $ | (3,068) |  |  | $ | (468,583) |
Equity in net earnings from investments |  | $ | 87,613 |  |  | $ | — |  |  | $ | 87,613 |
Investments in unconsolidated affiliates |  | $ | 797,233 |  |  | $ | — |  |  | $ | 797,233 |
Total assets |  | $ | 23,753,727 |  |  | $ | 118,604 |  |  | $ | 23,872,331 |
Capital expenditures |  | $ | 476,668 |  |  | $ | 13,661 |  |  | $ | 490,329 |
(a) - Noncustomer revenue for the nine months ended September 30, 2021, totaled $(386.9) million related primarily to losses from derivatives on commodity contracts.
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
| (Thousands of dollars)
Reconciliation of net income to total segment adjusted EBITDA |  |  |  |  |  |  |
Net income | $ | 431,751 |  |  | $ | 392,018 |  |  | $ | 1,237,300 |  |  | $ | 1,120,333 |
Add: |  |  |  |  |  |  |
Interest expense, net of capitalized interest | 166,939 |  |  | 184,049 |  |  | 509,744 |  |  | 554,529 |
Depreciation and amortization | 157,102 |  |  | 154,542 |  |  | 468,717 |  |  | 468,583 |
Income taxes | 132,129 |  |  | 121,899 |  |  | 385,270 |  |  | 354,100 |
Noncash compensation expense | 15,229 |  |  | 12,978 |  |  | 52,976 |  |  | 37,086 |
Other corporate costs and equity AFUDC | 2,645 |  |  | (944) |  |  | 3,185 |  |  | 683 |
Total segment adjusted EBITDA | $ | 905,795 |  |  | $ | 864,542 |  |  | $ | 2,657,192 |  |  | $ | 2,535,314 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=121556970&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 30 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599 + Details
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