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SEGMENTS (Tables)

9 Months Ended

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

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- References

No definition available.

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