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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 sales279 — 3 — 282 
Gathering, processing and exchange service revenue36 150 — — 186 
Transportation and storage revenue — 48 143 — 191 
Other9 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 sales282 — 282 
Gathering, processing and exchange services revenue186 — 186 
Transportation and storage revenue 191 (3)188 
Other85 (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 sales824 — 3 827 
Gathering, processing and exchange services revenue36 139 — 175 
Transportation and storage revenue — 40 134 174 
Other8 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 investments2 11 26 39 
Noncash compensation expense and other2 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 sales827 — 827 
Gathering, processing and exchange services revenue175 — 175 
Transportation and storage revenue 174 (2)172 
Other11 (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 sales1,066 — 28 — 1,094 
Gathering, processing and exchange services revenue109 414 — — 523 
Transportation and storage revenue — 143 434 — 577 
Other22 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 investments1 39 89 3 132 
Noncash compensation expense13 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 sales1,094 — 1,094 
Gathering, processing and exchange services revenue523 — 523 
Transportation and storage revenue 577 (7)570 
Other104 (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 sales2,035 — 30 2,065 
Gathering, processing and exchange services revenue104 415 — 519 
Transportation and storage revenue — 127 387 514 
Other18 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 investments5 25 81 111 
Noncash compensation expense and other12 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 sales2,065 — 2,065 
Gathering, processing and exchange services revenue519 — 519 
Transportation and storage revenue 514 (6)508 
Other27 (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 EndedNine Months Ended
September 30,September 30,
2023202220232022
(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 interest215 167 561 510 
Depreciation and amortization177 157 509 469 
Income taxes141 132 616 385 
Noncash compensation expense and other14 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.