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SEGMENTS (Notes)
12 Months Ended
Dec. 31, 2020
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
SEGMENTS SEGMENTS
Segment Descriptions - Our operations are divided into three 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 NGL products; and
our Natural Gas Pipelines segment transports and stores natural gas via regulated intrastate and interstate natural gas transmission pipelines and natural gas storage facilities.

Other and eliminations consist of corporate costs, the operating and leasing activities of our headquarters building and related parking facility and eliminations necessary to reconcile our reportable segments to our Consolidated Financial Statements.

Accounting Policies - The accounting policies of the segments are described in Note A.

For each of the years ended December 31, 2020, 2019 and 2018, we had no single customer from which we received 10% or more 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, 2020Natural Gas
Gathering and
Processing
Natural Gas
Liquids (a)
Natural Gas
Pipelines (b)
Total
Segments
 
(Thousands of dollars)
NGL and condensate sales$889,388 $6,409,332 $ $7,298,720 
Residue natural gas sales771,486  8,693 780,179 
Gathering, processing and exchange services revenue141,943 488,574  630,517 
Transportation and storage revenue 182,915 470,097 653,012 
Other17,304 9,192 1,192 27,688 
Total revenues (c)1,820,121 7,090,013 479,982 9,390,116 
Cost of sales and fuel (exclusive of depreciation and operating costs)
(843,976)(5,108,558)(6,809)(5,959,343)
Operating costs(326,938)(412,900)(141,713)(881,551)
Equity in net earnings (loss) from investments(1,123)39,938 104,426 143,241 
Noncash compensation expense and other1,952 8,748 1,540 12,240 
Segment adjusted EBITDA$650,036 $1,617,241 $437,426 $2,704,703 
Depreciation and amortization$(247,010)$(271,900)$(55,739)$(574,649)
Impairment charges$(566,145)$(78,785)$ $(644,930)
Investments in unconsolidated affiliates$22,757 $423,494 $358,781 $805,032 
Total assets$6,499,908 $13,636,109 $2,100,213 $22,236,230 
Capital expenditures$446,142 $1,655,759 $71,918 $2,173,819 
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $2.0 billion, of which $1.8 billion related to sales within the segment, and cost of sales and fuel of $520.6 million.
(b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $298.5 million and cost of sales and fuel of $30.4 million.
(c) - Intersegment revenues are primarily commodity sales which are based on the contracted selling price, which is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $865.6 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Year Ended December 31, 2020Total
Segments
Other and
Eliminations
Total
 
(Thousands of dollars)
Reconciliations of total segments to consolidated
NGL and condensate sales$7,298,720 $(820,851)$6,477,869 
Residue natural gas sales780,179 (10,860)769,319 
Gathering, processing and exchange services revenue630,517  630,517 
Transportation and storage revenue653,012 (14,599)638,413 
Other27,688 (1,564)26,124 
Total revenues (a)$9,390,116 $(847,874)$8,542,242 
Cost of sales and fuel (exclusive of depreciation and operating costs)$(5,959,343)$849,197 $(5,110,146)
Operating costs$(881,551)$(4,653)$(886,204)
Depreciation and amortization$(574,649)$(4,013)$(578,662)
Impairment charges$(644,930)$ $(644,930)
Equity in net earnings from investments$143,241 $ $143,241 
Investments in unconsolidated affiliates$805,032 $ $805,032 
Total assets$22,236,230 $842,524 $23,078,754 
Capital expenditures$2,173,819 $21,562 $2,195,381 
(a) - Noncustomer revenue for the year ended December 31, 2020, totaled $65.8 million related primarily to gains from derivatives on commodity contracts.

Year Ended December 31, 2019Natural Gas
Gathering and
Processing
Natural Gas
Liquids (a)
Natural Gas
Pipelines (b)
Total
Segments
 
(Thousands of dollars)
NGL and condensate sales$1,224,378 $7,910,833 $— $9,135,211 
Residue natural gas sales966,149 — 1,244 967,393 
Gathering, processing and exchange services revenue164,299 414,238 — 578,537 
Transportation and storage revenue— 197,483 466,266 663,749 
Other13,813 9,962 4,477 28,252 
Total revenues (c)2,368,639 8,532,516 471,987 11,373,142 
Cost of sales and fuel (exclusive of depreciation and operating costs)
(1,302,310)(6,690,918)(4,628)(7,997,856)
Operating costs(368,352)(456,892)(157,230)(982,474)
Equity in net earnings (loss) from investments(6,292)65,123 95,710 154,541 
Noncash compensation expense and other10,965 15,936 2,977 29,878 
Segment adjusted EBITDA$702,650 $1,465,765 $408,816 $2,577,231 
Depreciation and amortization$(219,519)$(196,132)$(57,250)$(472,901)
Investments in unconsolidated affiliates$34,426 $439,393 $388,025 $861,844 
Total assets$6,795,744 $12,551,476 $2,094,072 $21,441,292 
Capital expenditures$926,489 $2,796,604 $99,221 $3,822,314 
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $1.4 billion, of which $1.2 billion related to revenues within the segment, and cost of sales and fuel of $496.8 million.
(b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $285.3 million and cost of sales and fuel of $20.0 million.
(c) - Intersegment revenues are primarily commodity sales which are based on the contracted selling price, which is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $1.2 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Year Ended December 31, 2019Total
Segments
Other and
Eliminations
Total
 
(Thousands of dollars)
Reconciliations of total segments to consolidated
NGL and condensate sales$9,135,211 $(1,190,424)$7,944,787 
Residue natural gas sales967,393 (1,418)965,975 
Gathering, processing and exchange services revenue578,537 — 578,537 
Transportation and storage revenue663,749 (15,646)648,103 
Other28,252 (1,287)26,965 
Total revenues (a)$11,373,142 $(1,208,775)$10,164,367 
Cost of sales and fuel (exclusive of depreciation and operating costs)$(7,997,856)$1,209,816 $(6,788,040)
Operating costs$(982,474)$(390)$(982,864)
Depreciation and amortization$(472,901)$(3,634)$(476,535)
Equity in net earnings from investments$154,541 $— $154,541 
Investments in unconsolidated affiliates$861,844 $— $861,844 
Total assets$21,441,292 $370,829 $21,812,121 
Capital expenditures$3,822,314 $26,035 $3,848,349 
(a) - Noncustomer revenue for the year ended December 31, 2019, totaled $139.6 million related primarily to gains from derivatives on commodity contracts.

Year Ended December 31, 2018Natural Gas
Gathering and
Processing
Natural Gas
Liquids (a)
Natural Gas
Pipelines (b)
Total
Segments
 
(Thousands of dollars)
NGL and condensate sales$1,775,991 $10,319,847 $— $12,095,838 
Residue natural gas sales1,084,162 — 9,772 1,093,934 
Gathering, processing and exchange services revenue163,194 404,897 — 568,091 
Transportation and storage revenue— 199,018 414,969 613,987 
Other11,230 10,816 6,994 29,040 
Total revenues (c)3,034,577 10,934,578 431,735 14,400,890 
Cost of sales and fuel (exclusive of depreciation and operating costs)
(2,041,448)(9,176,813)(15,984)(11,234,245)
Operating costs(368,939)(394,115)(144,259)(907,313)
Equity in net earnings from investments410 67,126 90,847 158,383 
Noncash compensation expense and other7,007 9,829 3,912 20,748 
Segment adjusted EBITDA$631,607 $1,440,605 $366,251 $2,438,463 
Depreciation and amortization$(196,090)$(174,007)$(55,118)$(425,215)
Investments in unconsolidated affiliates$42,630 $451,040 $475,480 $969,150 
Total assets$6,078,473 $9,663,640 $2,131,669 $17,873,782 
Capital expenditures$694,611 $1,306,341 $119,185 $2,120,137 
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $1.2 billion, of which $1.1 billion related to revenues within the segment, and cost of sales and fuel of $506.0 million.
(b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $266.6 million and cost of sales and fuel of $26.0 million.
(c) - Intersegment revenues are primarily commodity sales which are based on the contracted selling price, which is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $1.8 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material.
Year Ended December 31, 2018Total
Segments
Other and
Eliminations
Total
(Thousands of dollars)
Reconciliations of total segments to consolidated
NGL and condensate sales$12,095,838 $(1,794,342)$10,301,496 
Residue natural gas sales1,093,934 (2,832)1,091,102 
Gathering, processing and exchange services revenue568,091 (21)568,070 
Transportation and storage revenue613,987 (10,550)603,437 
Other29,040 51 29,091 
Total revenues (a)$14,400,890 $(1,807,694)$12,593,196 
Cost of sales and fuel (exclusive of depreciation and operating costs)$(11,234,245)$1,811,537 $(9,422,708)
Operating costs$(907,313)$245 $(907,068)
Depreciation and amortization$(425,215)$(3,342)$(428,557)
Equity in net earnings from investments$158,383 $— $158,383 
Investments in unconsolidated affiliates$969,150 $— $969,150 
Total assets$17,873,782 $357,889 $18,231,671 
Capital expenditures$2,120,137 $21,338 $2,141,475 
(a) - Noncustomer revenue for the year ended December 31, 2018, totaled $(16.2) million related primarily to losses from derivatives on commodity contracts.

Years Ended December 31,
202020192018
Reconciliation of net income to total segment adjusted EBITDA
(Thousands of dollars)
Net income$612,809 $1,278,577 $1,155,032 
Add:
Interest expense, net of capitalized interest712,886 491,773 469,620 
Depreciation and amortization578,662 476,535 428,557 
Income tax expense189,507 372,414 362,903 
Impairment charges644,930 — — 
Noncash compensation expense8,540 26,699 37,954 
Other corporate costs and equity AFUDC (a)(42,631)(68,767)(15,603)
Total segment adjusted EBITDA$2,704,703 $2,577,231 $2,438,463 
(a) - The year ended December 31, 2020, includes corporate net gains of $22.3 million on extinguishment of debt related to open market repurchases. The year ended December 31, 2019, includes higher equity AFUDC related to our capital-growth projects compared with 2020 and 2018.