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SEGMENTS | 12 Months Ended
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Dec. 31, 2023
Segment Reporting, Disclosure of Entity's Reportable Segments [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 and crude oil, as well as conducts certain commodity-related activities including liquids blending 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 December 31, 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. For the year ended December 31, 2023, revenues from one customer impacting all our segments represented approximately 11% of our consolidated revenues. For the year ended December 31, 2022, we had no single customer from which we received 10% or more of our consolidated revenues. For the year ended December 31, 2021, revenues from one customer in our Natural Gas Liquids segment represented approximately 12% of our consolidated revenues. Operating Segment Information - The following tables set forth certain selected financial information for our operating segments for the periods indicated:
Year Ended December 31, 2023 |  | Natural Gas Gathering and Processing |  | Natural Gas Liquids |  | Natural Gas Pipelines |  | Refined Products and Crude |  | Total Segments
|  | (Millions of dollars)
Liquids commodity sales |  | $ | 2,479 |  |  | $ | 13,666 |  |  | $ | — |  |  | $ | 502 |  |  | $ | 16,647 |
Residue natural gas sales |  | 1,398 |  |  | — |  |  | 39 |  |  | — |  |  | 1,437 |
Gathering, processing and exchange services revenue |  | 147 |  |  | 549 |  |  | — |  |  | — |  |  | 696 |
Transportation and storage revenue |  | — |  |  | 204 |  |  | 582 |  |  | 535 |  |  | 1,321 |
Other |  | 32 |  |  | 10 |  |  | 2 |  |  | 34 |  |  | 78 |
Total revenues (a) |  | 4,056 |  |  | 14,429 |  |  | 623 |  |  | 1,071 |  |  | 20,179 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | (2,364) |  |  | (11,592) |  |  | (28) |  |  | (450) |  |  | (14,434) |
Operating costs |  | (467) |  |  | (666) |  |  | (202) |  |  | (198) |  |  | (1,533) |
Adjusted EBITDA from unconsolidated affiliates |  | 1 |  |  | 67 |  |  | 160 |  |  | 36 |  |  | 264 |
Noncash compensation expense |  | 19 |  |  | 29 |  |  | 8 |  |  | 6 |  |  | 62 |
Other |  | (1) |  |  | 778 |  |  | (2) |  |  | — |  |  | 775 |
Segment adjusted EBITDA |  | $ | 1,244 |  |  | $ | 3,045 |  |  | $ | 559 |  |  | $ | 465 |  |  | $ | 5,313 |
Depreciation and amortization |  | $ | (272) |  |  | $ | (334) |  |  | $ | (67) |  |  | $ | (92) |  |  | $ | (765) |
Equity in net earnings from investments |  | $ | (2) |  |  | $ | 58 |  |  | $ | 118 |  |  | $ | 28 |  |  | $ | 202 |
Investments in unconsolidated affiliates |  | $ | 24 |  |  | $ | 419 |  |  | $ | 526 |  |  | $ | 903 |  |  | $ | 1,872 |
Total assets |  | $ | 7,078 |  |  | $ | 14,974 |  |  | $ | 2,624 |  |  | $ | 19,531 |  |  | $ | 44,207 |
Capital expenditures |  | $ | 448 |  |  | $ | 818 |  |  | $ | 228 |  |  | $ | 52 |  |  | $ | 1,546 |
(a) - 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 $2.4 billion. Intersegment revenues for the Natural Gas Liquids, Refined Products and Crude and Natural Gas Pipelines segments were not material.
Year Ended December 31, 2023 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Millions of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
Liquids commodity sales |  | $ | 16,647 |  |  | $ | (2,480) |  |  | $ | 14,167 |
Residue natural gas sales |  | 1,437 |  |  | — |  |  | 1,437 |
Gathering, processing and exchange services revenue |  | 696 |  |  | — |  |  | 696 |
Transportation and storage revenue |  | 1,321 |  |  | (15) |  |  | 1,306 |
Other |  | 78 |  |  | (7) |  |  | 71 |
Total revenues (a) |  | $ | 20,179 |  |  | $ | (2,502) |  |  | $ | 17,677 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (14,434) |  |  | $ | 2,505 |  |  | $ | (11,929) |
Operating costs |  | $ | (1,533) |  |  | $ | (2) |  |  | $ | (1,535) |
Depreciation and amortization |  | $ | (765) |  |  | $ | (4) |  |  | $ | (769) |
Equity in net earnings from investments |  | $ | 202 |  |  | $ | — |  |  | $ | 202 |
Investments in unconsolidated affiliates |  | $ | 1,872 |  |  | $ | 2 |  |  | $ | 1,874 |
Total assets |  | $ | 44,207 |  |  | $ | 59 |  |  | $ | 44,266 |
Capital expenditures |  | $ | 1,546 |  |  | $ | 49 |  |  | $ | 1,595 |
(a) - Noncustomer revenue for the year ended December 31, 2023, totaled $296 million related primarily to gains from derivatives on commodity sales contracts.
Year Ended December 31, 2022 |  | Natural Gas Gathering and Processing |  | Natural Gas Liquids |  | Natural Gas Pipelines |  | Total Segments
|  | (Millions of dollars)
NGL and condensate sales |  | $ | 3,690 |  |  | $ | 18,329 |  |  | $ | — |  |  | $ | 22,019 |
Residue natural gas sales |  | 2,674 |  |  | — |  |  | 39 |  |  | 2,713 |
Gathering, processing and exchange services revenue |  | 144 |  |  | 547 |  |  | — |  |  | 691 |
Transportation and storage revenue |  | — |  |  | 180 |  |  | 539 |  |  | 719 |
Other |  | 25 |  |  | 11 |  |  | 1 |  |  | 37 |
Total revenues (a) |  | 6,533 |  |  | 19,067 |  |  | 579 |  |  | 26,179 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | (5,117) |  |  | (16,546) |  |  | (25) |  |  | (21,688) |
Operating costs |  | (403) |  |  | (576) |  |  | (181) |  |  | (1,160) |
Equity in net earnings from investments |  | 5 |  |  | 35 |  |  | 108 |  |  | 148 |
Noncash compensation expense |  | 17 |  |  | 27 |  |  | 7 |  |  | 51 |
Other |  | 2 |  |  | 88 |  |  | — |  |  | 90 |
Segment adjusted EBITDA |  | $ | 1,037 |  |  | $ | 2,095 |  |  | $ | 488 |  |  | $ | 3,620 |
Depreciation and amortization |  | $ | (257) |  |  | $ | (302) |  |  | $ | (62) |  |  | $ | (621) |
Investments in unconsolidated affiliates |  | $ | 28 |  |  | $ | 415 |  |  | $ | 359 |  |  | $ | 802 |
Total assets |  | $ | 6,980 |  |  | $ | 14,643 |  |  | $ | 2,254 |  |  | $ | 23,877 |
Capital expenditures |  | $ | 445 |  |  | $ | 581 |  |  | $ | 123 |  |  | $ | 1,149 |
(a) - 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 $3.7 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Year Ended December 31, 2022 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Millions of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 22,019 |  |  | $ | (3,759) |  |  | $ | 18,260 |
Residue natural gas sales |  | 2,713 |  |  | (8) |  |  | 2,705 |
Gathering, processing and exchange services revenue |  | 691 |  |  | — |  |  | 691 |
Transportation and storage revenue |  | 719 |  |  | (9) |  |  | 710 |
Other |  | 37 |  |  | (16) |  |  | 21 |
Total revenues (a) |  | $ | 26,179 |  |  | $ | (3,792) |  |  | $ | 22,387 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (21,688) |  |  | $ | 3,778 |  |  | $ | (17,910) |
Operating costs |  | $ | (1,160) |  |  | $ | 11 |  |  | $ | (1,149) |
Depreciation and amortization |  | $ | (621) |  |  | $ | (5) |  |  | $ | (626) |
Equity in net earnings from investments |  | $ | 148 |  |  | $ | — |  |  | $ | 148 |
Investments in unconsolidated affiliates |  | $ | 802 |  |  | $ | — |  |  | $ | 802 |
Total assets |  | $ | 23,877 |  |  | $ | 502 |  |  | $ | 24,379 |
Capital expenditures |  | $ | 1,149 |  |  | $ | 53 |  |  | $ | 1,202 |
(a) - Noncustomer revenue for the year ended December 31, 2022, totaled $(286) million related primarily to losses from derivatives on commodity contracts.
Year Ended December 31, 2021 |  | Natural Gas Gathering and Processing |  | Natural Gas Liquids |  | Natural Gas Pipelines |  | Total Segments
|  | (Millions of dollars)
NGL and condensate sales |  | $ | 2,821 |  |  | $ | 13,653 |  |  | $ | — |  |  | $ | 16,474 |
Residue natural gas sales |  | 1,484 |  |  | — |  |  | 115 |  |  | 1,599 |
Gathering, processing and exchange services revenue |  | 135 |  |  | 518 |  |  | — |  |  | 653 |
Transportation and storage revenue |  | — |  |  | 180 |  |  | 491 |  |  | 671 |
Other |  | 21 |  |  | 41 |  |  | 1 |  |  | 63 |
Total revenues (a) |  | 4,461 |  |  | 14,392 |  |  | 607 |  |  | 19,460 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | (3,226) |  |  | (11,940) |  |  | (11) |  |  | (15,177) |
Operating costs |  | (367) |  |  | (528) |  |  | (170) |  |  | (1,065) |
Equity in net earnings from investments |  | 4 |  |  | 21 |  |  | 97 |  |  | 122 |
Noncash compensation expense and other |  | 17 |  |  | 19 |  |  | 5 |  |  | 41 |
Segment adjusted EBITDA |  | $ | 889 |  |  | $ | 1,964 |  |  | $ | 528 |  |  | $ | 3,381 |
Depreciation and amortization |  | $ | (260) |  |  | $ | (299) |  |  | $ | (59) |  |  | $ | (618) |
Investments in unconsolidated affiliates |  | $ | 27 |  |  | $ | 417 |  |  | $ | 354 |  |  | $ | 798 |
Total assets |  | $ | 6,769 |  |  | $ | 14,502 |  |  | $ | 2,143 |  |  | $ | 23,414 |
Capital expenditures |  | $ | 275 |  |  | $ | 307 |  |  | $ | 93 |  |  | $ | 675 |
(a) - 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 $2.9 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Year Ended December 31, 2021 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Millions of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
NGL and condensate sales |  | $ | 16,474 |  |  | $ | (2,904) |  |  | $ | 13,570 |
Residue natural gas sales |  | 1,599 |  |  | — |  |  | 1,599 |
Gathering, processing and exchange services revenue |  | 653 |  |  | — |  |  | 653 |
Transportation and storage revenue |  | 671 |  |  | (14) |  |  | 657 |
Other |  | 63 |  |  | (2) |  |  | 61 |
Total revenues (a) |  | $ | 19,460 |  |  | $ | (2,920) |  |  | $ | 16,540 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (15,177) |  |  | $ | 2,920 |  |  | $ | (12,257) |
Operating costs |  | $ | (1,065) |  |  | $ | (2) |  |  | $ | (1,067) |
Depreciation and amortization |  | $ | (618) |  |  | $ | (4) |  |  | $ | (622) |
Equity in net earnings from investments |  | $ | 122 |  |  | $ | — |  |  | $ | 122 |
Investments in unconsolidated affiliates |  | $ | 798 |  |  | $ | — |  |  | $ | 798 |
Total assets |  | $ | 23,414 |  |  | $ | 208 |  |  | $ | 23,622 |
Capital expenditures |  | $ | 675 |  |  | $ | 22 |  |  | $ | 697 |
(a) - Noncustomer revenue for the year ended December 31, 2021, totaled $(565) million related primarily to losses from derivatives on commodity contracts.
|  | Years Ended December 31,
|  | 2023 |  | 2022 |  | 2021 |  |
Reconciliation of net income to total segment adjusted EBITDA |  | (Millions of dollars)
Net income |  | $ | 2,659 |  |  | $ | 1,722 |  |  | $ | 1,500 |  |  |
Interest expense, net of capitalized interest |  | 866 |  |  | 676 |  |  | 733 |  |  |
Depreciation and amortization |  | 769 |  |  | 626 |  |  | 622 |  |  |
Income taxes |  | 838 |  |  | 528 |  |  | 484 |  |  |
Adjusted EBITDA from unconsolidated affiliates (c) |  | 264 |  |  | — |  |  | — |  |  |
Equity in net earnings from investments (c) |  | (202) |  |  | — |  |  | — |  |  |
Noncash compensation expense and other |  | 49 |  |  | 68 |  |  | 41 |  |  |
Other corporate costs (b) |  | 70 |  |  | — |  |  | 1 |  |  |
Total segment adjusted EBITDA (a) (c) |  | $ | 5,313 |  |  | $ | 3,620 |  |  | $ | 3,381 |  |  |
(a) - The year ended December 31, 2023 includes $633 million related to the Medford incident, including a settlement gain of $779 million, offset partially by $146 million of third-party fractionation costs. (b) - The year ended December 31, 2023 primarily includes corporate costs related to the Magellan Acquisition of $158 million, offset partially by interest income of $49 million and corporate net gains of $41 million on extinguishment of debt related to open market repurchases. (c) - Beginning in 2023, we updated our calculation methodology of adjusted EBITDA to include adjusted EBITDA from our unconsolidated affiliates using the same recognition and measurement methods used to record equity in net earnings from investments. In prior periods, our calculation included equity in net earnings from investments. This change resulted in an additional $62 million of adjusted EBITDA in 2023, and we have not restated prior periods.

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- 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
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