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SEGMENTS (Tables) | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Schedule of Segments | The following tables set forth certain selected financial information for our operating segments for the periods indicated:
Three Months Ended Sept. 30, 2024 | Natural Gas Gathering and Processing |  | Natural Gas Liquids |  | Natural Gas Pipelines |  | Refined Products and Crude |  | Total Segments
| (Millions of dollars)
Liquids commodity sales | $ | 648 |  |  | $ | 3,496 |  |  | $ | — |  |  | $ | 407 |  |  | $ | 4,551 |
Residue natural gas sales | 219 |  |  | — |  |  | — |  |  | — |  |  | 219 |
Gathering, processing and exchange services revenue | 35 |  |  | 129 |  |  | — |  |  | — |  |  | 164 |
Transportation and storage revenue | — |  |  | 50 |  |  | 171 |  |  | 526 |  |  | 747 |
Other | 3 |  |  | 4 |  |  | — |  |  | 30 |  |  | 37 |
Total revenues (a) | 905 |  |  | 3,679 |  |  | 171 |  |  | 963 |  |  | 5,718 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (464) |  |  | (2,906) |  |  | (1) |  |  | (352) |  |  | (3,723) |
Operating costs | (129) |  |  | (183) |  |  | (52) |  |  | (217) |  |  | (581) |
Adjusted EBITDA from unconsolidated affiliates | — |  |  | 26 |  |  | 45 |  |  | 41 |  |  | 112 |
Noncash compensation expense and other | 6 |  |  | 8 |  |  | 3 |  |  | 6 |  |  | 23 |
Segment adjusted EBITDA | $ | 318 |  |  | $ | 624 |  |  | $ | 166 |  |  | $ | 441 |  |  | $ | 1,549 |
Depreciation and amortization | $ | (71) |  |  | $ | (89) |  |  | $ | (21) |  |  | $ | (93) |  |  | $ | (274) |
Equity in net earnings (loss) from investments | $ | (1) |  |  | $ | 24 |  |  | $ | 34 |  |  | $ | 35 |  |  | $ | 92 |
Capital expenditures | $ | 102 |  |  | $ | 247 |  |  | $ | 56 |  |  | $ | 45 |  |  | $ | 450 |
(a) - Intersegment revenues are primarily from commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly. Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $657 million and were not material for the Natural Gas Liquids, Refined Products and Crude and Natural Gas Pipelines segments.
Three Months Ended Sept. 30, 2024 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Millions of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
Liquids commodity sales |  | $ | 4,551 |  |  | $ | (691) |  |  | $ | 3,860 |
Residue natural gas sales |  | 219 |  |  | — |  |  | 219 |
Gathering, processing and exchange services revenue |  | 164 |  |  | — |  |  | 164 |
Transportation and storage revenue |  | 747 |  |  | (4) |  |  | 743 |
Other |  | 37 |  |  | — |  |  | 37 |
Total revenues (a) |  | $ | 5,718 |  |  | $ | (695) |  |  | $ | 5,023 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (3,723) |  |  | $ | 696 |  |  | $ | (3,027) |
Operating costs |  | $ | (581) |  |  | $ | (1) |  |  | $ | (582) |
Depreciation and amortization |  | $ | (274) |  |  | $ | — |  |  | $ | (274) |
Equity in net earnings from investments |  | $ | 92 |  |  | $ | — |  |  | $ | 92 |
Capital expenditures |  | $ | 450 |  |  | $ | 18 |  |  | $ | 468 |
(a) - Substantially all of our revenues relate to contracts with customers.
Three Months Ended Sept. 30, 2023 | Natural Gas Gathering and Processing |  | Natural Gas Liquids |  | Natural Gas Pipelines |  | Refined Products and Crude (c) |  | 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 services revenue | 36 |  |  | 150 |  |  | — |  |  | — |  |  | 186 |
Transportation and storage revenue | — |  |  | 48 |  |  | 143 |  |  | — |  |  | 191 |
Other | 9 |  |  | 4 |  |  | — |  |  | 72 |  |  | 85 |
Total revenues (a) | 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) |
Adjusted EBITDA from unconsolidated affiliates (b) | — |  |  | 19 |  |  | 40 |  |  | 4 |  |  | 63 |
Noncash compensation expense and other | 4 |  |  | 6 |  |  | 3 |  |  | — |  |  | 13 |
Segment adjusted EBITDA (b) | $ | 323 |  |  | $ | 616 |  |  | $ | 136 |  |  | $ | 41 |  |  | $ | 1,116 |
Depreciation and amortization | $ | (68) |  |  | $ | (85) |  |  | $ | (17) |  |  | $ | (6) |  |  | $ | (176) |
Equity in net earnings from investments | $ | — |  |  | $ | 17 |  |  | $ | 29 |  |  | $ | 3 |  |  | $ | 49 |
Capital expenditures | $ | 126 |  |  | $ | 189 |  |  | $ | 70 |  |  | $ | 1 |  |  | $ | 386 |
(a) - Intersegment revenues are primarily from commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly. Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $620 million and were not material for the Natural Gas Liquids and Natural Gas Pipelines segments. (b) - 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. This change resulted in an additional $14 million of adjusted EBITDA for the three months ended Sept. 30, 2023. (c) - Disaggregation of revenue for our Refined Products and Crude segment was based on a preliminary evaluation of contracts upon completion of the Magellan Acquisition.
Three Months Ended Sept. 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) - Substantially all of our revenues relate to contracts with customers.
Nine Months Ended Sept. 30, 2024 | Natural Gas Gathering and Processing |  | Natural Gas Liquids |  | Natural Gas Pipelines |  | Refined Products and Crude |  | Total Segments
| (Millions of dollars)
Liquids commodity sales | $ | 1,912 |  |  | $ | 10,104 |  |  | $ | — |  |  | $ | 1,250 |  |  | $ | 13,266 |
Residue natural gas sales | 732 |  |  | — |  |  | 28 |  |  | — |  |  | 760 |
Gathering, processing and exchange services revenue | 101 |  |  | 390 |  |  | — |  |  | — |  |  | 491 |
Transportation and storage revenue | — |  |  | 141 |  |  | 491 |  |  | 1,490 |  |  | 2,122 |
Other | 16 |  |  | 10 |  |  | — |  |  | 81 |  |  | 107 |
Total revenues (a) | 2,761 |  |  | 10,645 |  |  | 519 |  |  | 2,821 |  |  | 16,746 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (1,479) |  |  | (8,352) |  |  | (18) |  |  | (1,017) |  |  | (10,866) |
Operating costs | (365) |  |  | (545) |  |  | (157) |  |  | (650) |  |  | (1,717) |
Adjusted EBITDA from unconsolidated affiliates | 3 |  |  | 70 |  |  | 133 |  |  | 117 |  |  | 323 |
Noncash compensation expense | 16 |  |  | 26 |  |  | 6 |  |  | 24 |  |  | 72 |
Other | 59 |  |  | 3 |  |  | — |  |  | (6) |  |  | 56 |
Segment adjusted EBITDA | $ | 995 |  |  | $ | 1,847 |  |  | $ | 483 |  |  | $ | 1,289 |  |  | $ | 4,614 |
Depreciation and amortization | $ | (215) |  |  | $ | (260) |  |  | $ | (57) |  |  | $ | (254) |  |  | $ | (786) |
Equity in net earnings from investments | $ | 1 |  |  | $ | 63 |  |  | $ | 102 |  |  | $ | 90 |  |  | $ | 256 |
Investments in unconsolidated affiliates | $ | 31 |  |  | $ | 417 |  |  | $ | 516 |  |  | $ | 958 |  |  | $ | 1,922 |
Total assets | $ | 7,113 |  |  | $ | 15,701 |  |  | $ | 2,704 |  |  | $ | 19,031 |  |  | $ | 44,549 |
Capital expenditures | $ | 319 |  |  | $ | 785 |  |  | $ | 187 |  |  | $ | 120 |  |  | $ | 1,411 |
(a) - Intersegment revenues are primarily from commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly. Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $1.9 billion and were not material for the Natural Gas Liquids, Refined Products and Crude and Natural Gas Pipelines segments.
Nine Months Ended Sept. 30, 2024 |  | Total Segments |  | Other and Eliminations |  | Total
|  | (Millions of dollars)
Reconciliations of total segments to consolidated |  |  |  |  |  |
Liquids commodity sales |  | $ | 13,266 |  |  | $ | (2,025) |  |  | $ | 11,241 |
Residue natural gas sales |  | 760 |  |  | — |  |  | 760 |
Gathering, processing and exchange services revenue |  | 491 |  |  | — |  |  | 491 |
Transportation and storage revenue |  | 2,122 |  |  | (16) |  |  | 2,106 |
Other |  | 107 |  |  | (7) |  |  | 100 |
Total revenues (a) |  | $ | 16,746 |  |  | $ | (2,048) |  |  | $ | 14,698 |
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | (10,866) |  |  | $ | 2,051 |  |  | $ | (8,815) |
Operating costs |  | $ | (1,717) |  |  | $ | (3) |  |  | $ | (1,720) |
Depreciation and amortization |  | $ | (786) |  |  | $ | (4) |  |  | $ | (790) |
Equity in net earnings from investments |  | $ | 256 |  |  | $ | — |  |  | $ | 256 |
Investments in unconsolidated affiliates |  | $ | 1,922 |  |  | $ | 3 |  |  | $ | 1,925 |
Total assets |  | $ | 44,549 |  |  | $ | 6,501 |  |  | $ | 51,050 |
Capital expenditures |  | $ | 1,411 |  |  | $ | 48 |  |  | $ | 1,459 |
(a) - Substantially all of our revenues relate to contracts with customers.
Nine Months Ended Sept. 30, 2023 | Natural Gas Gathering and Processing |  | Natural Gas Liquids |  | Natural Gas Pipelines |  | Refined Products and Crude (c) | 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 (a) | 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) |
Adjusted EBITDA from unconsolidated affiliates (b) | 2 |  |  | 46 |  |  | 120 |  |  | 4 |  | 172 |
Noncash compensation expense | 13 |  |  | 20 |  |  | 5 |  |  | — |  | 38 |
Other | — |  |  | 775 |  |  | 1 |  |  | — |  | 776 |
Segment adjusted EBITDA (b) | $ | 921 |  |  | $ | 2,432 |  |  | $ | 427 |  |  | $ | 41 |  | $ | 3,821 |
Depreciation and amortization | $ | (202) |  |  | $ | (248) |  |  | $ | (50) |  |  | $ | (6) |  | $ | (506) |
Equity in net earnings from investments | $ | 1 |  |  | $ | 39 |  |  | $ | 89 |  |  | $ | 3 |  | $ | 132 |
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) - Intersegment revenues are primarily from commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly. Intersegment revenues for the Natural Gas Gathering and Processing segment totaled $1.8 billion and were not material for the Natural Gas Liquids and Natural Gas Pipelines segments. (b) - 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. This change resulted in an additional $40 million of adjusted EBITDA for the nine months ended Sept. 30, 2023. (c) - Disaggregation of revenue for our Refined Products and Crude segment was based on a preliminary evaluation of contracts upon completion of the Magellan Acquisition.
Nine Months Ended Sept. 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) - Substantially all of our revenues relate to contracts with customers.
|  | Three Months Ended Sept. 30, |  | Nine Months Ended Sept. 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Reconciliation of net income to total segment adjusted EBITDA |  | (Millions of dollars)
Net income |  | $ | 693 |  |  | $ | 454 |  |  | $ | 2,112 |  |  | $ | 1,971 |
Interest expense, net of capitalized interest |  | 325 |  |  | 215 |  |  | 923 |  |  | 561 |
Depreciation and amortization |  | 274 |  |  | 177 |  |  | 790 |  |  | 509 |
Income taxes |  | 219 |  |  | 141 |  |  | 670 |  |  | 616 |
Adjusted EBITDA from unconsolidated affiliates (b) |  | 112 |  |  | 63 |  |  | 323 |  |  | 172 |
Equity in net earnings from investments (b) |  | (92) |  |  | (49) |  |  | (256) |  |  | (132) |
Noncash compensation expense and other |  | 14 |  |  | 14 |  |  | 48 |  |  | 32 |
Other corporate costs (c) |  | 4 |  |  | 101 |  |  | 4 |  |  | 92 |
Total segment adjusted EBITDA (a)(b) |  | $ | 1,549 |  |  | $ | 1,116 |  |  | $ | 4,614 |  |  | $ | 3,821 |
(a) - The nine months ended Sept. 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) - 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. This change resulted in an additional $14 million and $40 million of adjusted EBITDA for the three and nine months ended Sept. 30, 2023, respectively. (c) - Includes transaction costs related to the Magellan Acquisition of $123 million, offset partially by interest income of $26 million for the three months ended Sept. 30, 2023, and transaction costs related to the Magellan Acquisition of $133 million, offset partially by interest income of $42 million for the nine months ended Sept. 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 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: 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 3: 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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