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SEGMENTS (Tables) | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segments | The following tables set forth certain selected financial information for our operating segments for the periods indicated:
Three Months Ended September 30, 2023 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Refined Products and Crude (d) |  | Total Segments
| (Millions of dollars)
NGL and condensate sales | $ | 641 |  |  | $ | 3,432 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,073 |
Residue natural gas sales | 279 |  |  | — |  |  | 3 |  |  | — |  |  | 282 |
Gathering, processing and exchange service revenue | 36 |  |  | 150 |  |  | — |  |  | — |  |  | 186 |
Transportation and storage revenue | — |  |  | 48 |  |  | 143 |  |  | — |  |  | 191 |
Other | 9 |  |  | 4 |  |  | — |  |  | 72 |  |  | 85 |
Total revenues (c) | 965 |  |  | 3,634 |  |  | 146 |  |  | 72 |  |  | 4,817 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (527) |  |  | (2,875) |  |  | (2) |  |  | (22) |  |  | (3,426) |
Operating costs | (119) |  |  | (168) |  |  | (51) |  |  | (13) |  |  | (351) |
Equity in net earnings from investments | — |  |  | 17 |  |  | 29 |  |  | 3 |  |  | 49 |
Noncash compensation expense and other | 3 |  |  | 6 |  |  | 3 |  |  | — |  |  | 12 |
Segment adjusted EBITDA | $ | 322 |  |  | $ | 614 |  |  | $ | 125 |  |  | $ | 40 |  |  | $ | 1,101 |
Depreciation and amortization | $ | (68) |  |  | $ | (85) |  |  | $ | (17) |  |  | $ | (6) |  |  | $ | (176) |
Capital expenditures | $ | 126 |  |  | $ | 189 |  |  | $ | 70 |  |  | $ | 1 |  |  | $ | 386 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $756 million, of which $696 million related to revenues within the segment, cost of sales and fuel of $240 million and operating costs of $93 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $107 million, cost of sales and fuel of $8 million and operating costs of $42 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 our Natural Gas Gathering and Processing segment totaled $620 million. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material. (d) - Disaggregation of revenue for our Refined Products and Crude segment is preliminary and will be updated as we continue to evaluate these contracts.
Three Months Ended September 30, 2023 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Millions of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 4,073 |  |  | $ | (624) |  |  | $ | 3,449 |
Residue natural gas sales |  | 282 |  |  | — |  |  | 282 |
Gathering, processing and exchange services revenue |  | 186 |  |  | — |  |  | 186 |
Transportation and storage revenue |  | 191 |  |  | (3) |  |  | 188 |
Other |  | 85 |  |  | (1) |  |  | 84 |
Total revenues (a) |  | $ | 4,817 |  |  | $ | (628) |  |  | $ | 4,189 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (3,426) |  |  | $ | 627 |  |  | $ | (2,799) |
Operating costs |  | $ | (351) |  |  | $ | (1) |  |  | $ | (352) |
Depreciation and amortization |  | $ | (176) |  |  | $ | (1) |  |  | $ | (177) |
Equity in net earnings from investments |  | $ | 49 |  |  | $ | — |  |  | $ | 49 |
Capital expenditures |  | $ | 386 |  |  | $ | 12 |  |  | $ | 398 |
(a) - Noncustomer revenue for the three months ended September 30, 2023, totaled $18 million related primarily to gains from derivatives on commodity sales contracts.
Three Months Ended September 30, 2022 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total Segments
| (Millions of dollars)
NGL and condensate sales | $ | 991 |  |  | $ | 4,749 |  |  | $ | — |  |  | $ | 5,740 |
Residue natural gas sales | 824 |  |  | — |  |  | 3 |  |  | 827 |
Gathering, processing and exchange services revenue | 36 |  |  | 139 |  |  | — |  |  | 175 |
Transportation and storage revenue | — |  |  | 40 |  |  | 134 |  |  | 174 |
Other | 8 |  |  | 3 |  |  | — |  |  | 11 |
Total revenues (c) | 1,859 |  |  | 4,931 |  |  | 137 |  |  | 6,927 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (1,461) |  |  | (4,317) |  |  | (4) |  |  | (5,782) |
Operating costs | (98) |  |  | (144) |  |  | (44) |  |  | (286) |
Equity in net earnings from investments | 2 |  |  | 11 |  |  | 26 |  |  | 39 |
Noncash compensation expense and other | 2 |  |  | 4 |  |  | 2 |  |  | 8 |
Segment adjusted EBITDA | $ | 304 |  |  | $ | 485 |  |  | $ | 117 |  |  | $ | 906 |
Depreciation and amortization | $ | (65) |  |  | $ | (76) |  |  | $ | (16) |  |  | $ | (157) |
Capital expenditures | $ | 104 |  |  | $ | 169 |  |  | $ | 40 |  |  | $ | 313 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $672 million, of which $621 million related to revenues within the segment, cost of sales and fuel of $205 million and operating costs of $84 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $102 million, cost of sales and fuel of $12 million and operating costs of $37 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 our Natural Gas Gathering and Processing segment totaled $1.0 billion. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Three Months Ended September 30, 2022 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Millions of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 5,740 |  |  | $ | (1,006) |  |  | $ | 4,734 |
Residue natural gas sales |  | 827 |  |  | — |  |  | 827 |
Gathering, processing and exchange services revenue |  | 175 |  |  | — |  |  | 175 |
Transportation and storage revenue |  | 174 |  |  | (2) |  |  | 172 |
Other |  | 11 |  |  | (5) |  |  | 6 |
Total revenues (a) |  | $ | 6,927 |  |  | $ | (1,013) |  |  | $ | 5,914 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (5,782) |  |  | $ | 1,009 |  |  | $ | (4,773) |
Operating costs |  | $ | (286) |  |  | $ | — |  |  | $ | (286) |
Depreciation and amortization |  | $ | (157) |  |  | $ | — |  |  | $ | (157) |
Equity in net earnings from investments |  | $ | 39 |  |  | $ | — |  |  | $ | 39 |
Capital expenditures |  | $ | 313 |  |  | $ | 14 |  |  | $ | 327 |
(a) - Noncustomer revenue for the three months ended September 30, 2022, totaled $(57) million related primarily to losses from derivatives on commodity sales contracts.
Nine Months Ended September 30, 2023 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Refined Products and Crude (d) |  | Total Segments
| (Millions of dollars)
NGL and condensate sales | $ | 1,835 |  |  | $ | 10,103 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,938 |
Residue natural gas sales | 1,066 |  |  | — |  |  | 28 |  |  | — |  |  | 1,094 |
Gathering, processing and exchange services revenue | 109 |  |  | 414 |  |  | — |  |  | — |  |  | 523 |
Transportation and storage revenue | — |  |  | 143 |  |  | 434 |  |  | — |  |  | 577 |
Other | 22 |  |  | 9 |  |  | 1 |  |  | 72 |  |  | 104 |
Total revenues (c) | 3,032 |  |  | 10,669 |  |  | 463 |  |  | 72 |  |  | 14,236 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (1,787) |  |  | (8,597) |  |  | (17) |  |  | (22) |  |  | (10,423) |
Operating costs | (339) |  |  | (481) |  |  | (145) |  |  | (13) |  |  | (978) |
Equity in net earnings from investments | 1 |  |  | 39 |  |  | 89 |  |  | 3 |  |  | 132 |
Noncash compensation expense | 13 |  |  | 20 |  |  | 5 |  |  | — |  |  | 38 |
Other | (1) |  |  | 775 |  |  | 1 |  |  | — |  |  | 775 |
Segment adjusted EBITDA | $ | 919 |  |  | $ | 2,425 |  |  | $ | 396 |  |  | $ | 40 |  |  | $ | 3,780 |
Depreciation and amortization | $ | (202) |  |  | $ | (248) |  |  | $ | (50) |  |  | $ | (6) |  |  | $ | (506) |
Investments in unconsolidated affiliates | $ | 26 |  |  | $ | 417 |  |  | $ | 440 |  |  | $ | 911 |  |  | $ | 1,794 |
Total assets | $ | 6,976 |  |  | $ | 14,988 |  |  | $ | 2,433 |  |  | $ | 19,185 |  |  | $ | 43,582 |
Capital expenditures | $ | 308 |  |  | $ | 495 |  |  | $ | 155 |  |  | $ | 1 |  |  | $ | 959 |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $2.1 billion, of which $1.9 billion related to revenues within the segment, cost of sales and fuel of $627 million and operating costs of $273 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $326 million, cost of sales and fuel of $31 million and operating costs of $121 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 our Natural Gas Gathering and Processing segment totaled $1.8 billion. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material. (d) - Disaggregation of revenue for our Refined Products and Crude segment is preliminary and will be updated as we continue to evaluate these contracts.
Nine Months Ended September 30, 2023 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Millions of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 11,938 |  |  | $ | (1,779) |  |  | $ | 10,159 |
Residue natural gas sales |  | 1,094 |  |  | — |  |  | 1,094 |
Gathering, processing and exchange services revenue |  | 523 |  |  | — |  |  | 523 |
Transportation and storage revenue |  | 577 |  |  | (7) |  |  | 570 |
Other |  | 104 |  |  | (8) |  |  | 96 |
Total revenues (a) |  | $ | 14,236 |  |  | $ | (1,794) |  |  | $ | 12,442 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (10,423) |  |  | $ | 1,795 |  |  | $ | (8,628) |
Operating costs |  | $ | (978) |  |  | $ | (3) |  |  | $ | (981) |
Depreciation and amortization |  | $ | (506) |  |  | $ | (3) |  |  | $ | (509) |
Equity in net earnings from investments |  | $ | 132 |  |  | $ | — |  |  | $ | 132 |
Investments in unconsolidated affiliates |  | $ | 1,794 |  |  | $ | 1 |  |  | $ | 1,795 |
Total assets |  | $ | 43,582 |  |  | $ | 357 |  |  | $ | 43,939 |
Capital expenditures |  | $ | 959 |  |  | $ | 33 |  |  | $ | 992 |
(a) - Noncustomer revenue for the nine months ended September 30, 2023, totaled $160 million related primarily to gains from derivatives on commodity sales contracts.
Nine Months Ended September 30, 2022 | Natural Gas Gathering and Processing |  | Natural Gas Liquids (a) |  | Natural Gas Pipelines (b) |  | Total Segments
| (Millions of dollars)
NGL and condensate sales | $ | 3,034 |  |  | $ | 14,308 |  |  | $ | — |  |  | $ | 17,342 |
Residue natural gas sales | 2,035 |  |  | — |  |  | 30 |  |  | 2,065 |
Gathering, processing and exchange services revenue | 104 |  |  | 415 |  |  | — |  |  | 519 |
Transportation and storage revenue | — |  |  | 127 |  |  | 387 |  |  | 514 |
Other | 18 |  |  | 8 |  |  | 1 |  |  | 27 |
Total revenues (c) | 5,191 |  |  | 14,858 |  |  | 418 |  |  | 20,467 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (4,148) |  |  | (12,949) |  |  | (22) |  |  | (17,119) |
Operating costs | (289) |  |  | (416) |  |  | (126) |  |  | (831) |
Equity in net earnings from investments | 5 |  |  | 25 |  |  | 81 |  |  | 111 |
Noncash compensation expense and other | 12 |  |  | 12 |  |  | 6 |  |  | 30 |
Segment adjusted EBITDA | $ | 771 |  |  | $ | 1,530 |  |  | $ | 357 |  |  | $ | 2,658 |
Depreciation and amortization | $ | (193) |  |  | $ | (226) |  |  | $ | (47) |  |  | $ | (466) |
Investments in unconsolidated affiliates | $ | 28 |  |  | $ | 414 |  |  | $ | 362 |  |  | $ | 804 |
Total assets | $ | 7,079 |  |  | $ | 14,987 |  |  | $ | 2,205 |  |  | $ | 24,271 |
Capital expenditures | $ | 321 |  |  | $ | 445 |  |  | $ | 82 |  |  | $ | 848 |
(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, cost of sales and fuel of $503 million and operating costs of $241 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $329 million, cost of sales and fuel of $40 million and operating costs of $108 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 our Natural Gas Gathering and Processing segment totaled $3.1 billion. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Nine Months Ended September 30, 2022 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Millions of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 17,342 |  |  | $ | (3,096) |  |  | $ | 14,246 |
Residue natural gas sales |  | 2,065 |  |  | — |  |  | 2,065 |
Gathering, processing and exchange services revenue |  | 519 |  |  | — |  |  | 519 |
Transportation and storage revenue |  | 514 |  |  | (6) |  |  | 508 |
Other |  | 27 |  |  | (10) |  |  | 17 |
Total revenues (a) |  | $ | 20,467 |  |  | $ | (3,112) |  |  | $ | 17,355 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (17,119) |  |  | $ | 3,102 |  |  | $ | (14,017) |
Operating costs |  | $ | (831) |  |  | $ | 4 |  |  | $ | (827) |
Depreciation and amortization |  | $ | (466) |  |  | $ | (3) |  |  | $ | (469) |
Equity in net earnings from investments |  | $ | 111 |  |  | $ | — |  |  | $ | 111 |
Investments in unconsolidated affiliates |  | $ | 804 |  |  | $ | — |  |  | $ | 804 |
Total assets |  | $ | 24,271 |  |  | $ | 168 |  |  | $ | 24,439 |
Capital expenditures |  | $ | 848 |  |  | $ | 38 |  |  | $ | 886 |
(a) - Noncustomer revenue for the nine months ended September 30, 2022, totaled $(364) million related primarily to losses from derivatives on commodity sales contracts.
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (Millions of dollars)
Reconciliation of net income to total segment adjusted EBITDA |  |  |  |  |  |  |
Net income | $ | 454 |  |  | $ | 432 |  |  | $ | 1,971 |  |  | $ | 1,237 |
Add: |  |  |  |  |  |  |
Interest expense, net of capitalized interest | 215 |  |  | 167 |  |  | 561 |  |  | 510 |
Depreciation and amortization | 177 |  |  | 157 |  |  | 509 |  |  | 469 |
Income taxes | 141 |  |  | 132 |  |  | 616 |  |  | 385 |
Noncash compensation expense and other | 14 |  |  | 14 |  |  | 32 |  |  | 51 |
Other corporate costs (b) | 100 |  |  | 4 |  |  | 91 |  |  | 6 |
Total segment adjusted EBITDA (a) | $ | 1,101 |  |  | $ | 906 |  |  | $ | 3,780 |  |  | $ | 2,658 |
(a) - The nine months ended September 30, 2023 includes $667 million related to the Medford incident, including a settlement gain of $779 million, offset partially by $112 million of third-party fractionation costs.(b) - Includes costs related to the Magellan Acquisition of $123 million, offset partially by interest income of $26 million for the three months ended September 30, 2023, and costs related to the Magellan Acquisition of $133 million, offset partially by interest income of $42 million for the nine months ended September 30, 2023.

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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 -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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