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SEGMENTS (Tables) | 12 Months Ended
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Dec. 31, 2023
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] |
Segments | 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 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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