XML 35 R23.htm IDEA: XBRL DOCUMENT
v3.23.3

SEGMENTS | 9 Months Ended
--- | ---
Sep. 30, 2023
Segment Reporting [Abstract] |
SEGMENTS | . SEGMENTS Segment Descriptions - Our operations are divided into four 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 Purity NGLs; • our Natural Gas Pipelines segment transports and stores natural gas; and • our Refined Products and Crude segment transports, stores and distributes Refined Products, certain NGLs and crude oil, as well as conducts certain commodity-related activities including liquids blending, fractionation and marketing activities. This new reportable business segment was added in conjunction with the Magellan Acquisition that closed on September 25, 2023. Results of operations for this business segment are included below for the period September 25, 2023, through September 30, 2023. 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 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, 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.

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration