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SEGMENTS (Notes)
 9 Months Ended
Sep. 30, 2022
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
SEGMENTS SEGMENTS
Segment Descriptions - Our operations are divided into three reportable business segments as follows:
•    our Natural Gas Gathering and Processing segment gathers, treats and processes natural gas;
•    our Natural Gas Liquids segment gathers, treats, fractionates and transports NGLs and stores, markets and distributes NGL products; and
•    our Natural Gas Pipelines segment transports and stores natural gas via regulated intrastate and interstate natural gas transmission pipelines and natural gas storage facilities.

Other and eliminations consist of corporate costs, the operating and leasing activities of our headquarters building and related parking facility, the activity of our wholly owned captive insurance company, which began in April 2022, and eliminations necessary to reconcile our reportable segments to our Consolidated Financial Statements.

Operating Segment Information - 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 sales824,558 — 2,889 827,447 
Gathering, processing and exchange services revenue36,571 139,302 — 175,873 
Transportation and storage revenue — 39,884 133,789 173,673 
Other7,453 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 investments1,676 11,159 26,345 39,180 
Noncash compensation expense and other2,512 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 sales827,447 — 827,447 
Gathering, processing and exchange services revenue175,873 — 175,873 
Transportation and storage revenue 173,673 (2,214)171,459 
Other10,236 (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 sales370,801 — 19 370,820 
Gathering, processing and exchange services revenue35,395 133,574 — 168,969 
Transportation and storage revenue — 40,465 120,294 160,759 
Other6,294 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 investments499 5,384 22,690 28,573 
Noncash compensation expense and other9,816 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 sales370,820 — 370,820 
Gathering, processing and exchange services revenue168,969 — 168,969 
Transportation and storage revenue 160,759 (3,500)157,259 
Other8,960 (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 sales2,035,330 — 30,254 2,065,584 
Gathering, processing and exchange services revenue104,072 415,073 — 519,145 
Transportation and storage revenue — 126,988 387,211 514,199 
Other17,558 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 investments4,906 24,986 81,258 111,150 
Noncash compensation expense and other12,607 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 sales2,065,584 (332)2,065,252 
Gathering, processing and exchange services revenue519,145 — 519,145 
Transportation and storage revenue 514,199 (6,356)507,843 
Other26,167 (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 sales940,850 — 115,478 1,056,328 
Gathering, processing and exchange services revenue101,221 376,429 — 477,650 
Transportation and storage revenue — 127,057 365,578 492,635 
Other15,422 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 investments2,669 14,078 70,866 87,613 
Noncash compensation expense and other15,254 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 sales1,056,328 — 1,056,328 
Gathering, processing and exchange services revenue477,650 — 477,650 
Transportation and storage revenue 492,635 (10,541)482,094 
Other54,265 (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 EndedNine Months Ended
September 30, September 30,
2022202120222021
(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 interest166,939 184,049 509,744 554,529 
Depreciation and amortization157,102 154,542 468,717 468,583 
Income taxes132,129 121,899 385,270 354,100 
Noncash compensation expense15,229 12,978 52,976 37,086 
Other corporate costs and equity AFUDC2,645 (944)3,185 683 
Total segment adjusted EBITDA$905,795 $864,542 $2,657,192 $2,535,314