Segments |
The following tables set forth certain selected financial information for our operating segments for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2021 | | Natural Gas Gathering and Processing | | Natural Gas Liquids (a) | | Natural Gas Pipelines (b) | | Total Segments | | | (Thousands of dollars) | NGL and condensate sales | | $ | 2,821,175 | | | $ | 13,653,120 | | | $ | — | | | $ | 16,474,295 | | Residue natural gas sales | | 1,483,898 | | | — | | | 115,495 | | | 1,599,393 | | Gathering, processing and exchange services revenue | | 135,501 | | | 517,758 | | | — | | | 653,259 | | Transportation and storage revenue | | — | | | 179,619 | | | 490,498 | | | 670,117 | | Other | | 20,965 | | | 41,376 | | | 910 | | | 63,251 | | Total revenues (c) | | 4,461,539 | | | 14,391,873 | | | 606,903 | | | 19,460,315 | | Cost of sales and fuel (exclusive of depreciation and operating costs) | | (3,226,078) | | | (11,939,661) | | | (11,236) | | | (15,176,975) | | Operating costs | | (367,390) | | | (528,084) | | | (170,257) | | | (1,065,731) | | Equity in net earnings from investments | | 3,757 | | | 21,000 | | | 97,763 | | | 122,520 | | Noncash compensation expense and other | | 17,299 | | | 18,511 | | | 4,637 | | | 40,447 | | Segment adjusted EBITDA | | $ | 889,127 | | | $ | 1,963,639 | | | $ | 527,810 | | | $ | 3,380,576 | | | | | | | | | | | Depreciation and amortization | | $ | (260,011) | | | $ | (298,937) | | | $ | (58,702) | | | $ | (617,650) | | Investments in unconsolidated affiliates | | $ | 27,018 | | | $ | 416,648 | | | $ | 353,947 | | | $ | 797,613 | | Total assets | | $ | 6,768,955 | | | $ | 14,502,372 | | | $ | 2,143,307 | | | $ | 23,414,634 | | Capital expenditures | | $ | 275,165 | | | $ | 306,949 | | | $ | 92,617 | | | $ | 674,731 | |
(a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $2.4 billion, of which $2.2 billion related to revenues within the segment, and cost of sales and fuel of $607.5 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $394.2 million and cost of sales and fuel of $24.3 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 $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 | | | (Thousands of dollars) | Reconciliations of total segments to consolidated | | | | | | | NGL and condensate sales | | $ | 16,474,295 | | | $ | (2,904,598) | | | $ | 13,569,697 | | Residue natural gas sales | | 1,599,393 | | | — | | | 1,599,393 | | Gathering, processing and exchange services revenue | | 653,259 | | | — | | | 653,259 | | Transportation and storage revenue | | 670,117 | | | (13,121) | | | 656,996 | | Other | | 63,251 | | | (2,287) | | | 60,964 | | Total revenues (a) | | $ | 19,460,315 | | | $ | (2,920,006) | | | $ | 16,540,309 | | | | | | | | | Cost of sales and fuel (exclusive of depreciation and operating costs) | | $ | (15,176,975) | | | $ | 2,920,320 | | | $ | (12,256,655) | | Operating costs | | $ | (1,065,731) | | | $ | (1,357) | | | $ | (1,067,088) | | Depreciation and amortization | | $ | (617,650) | | | $ | (4,051) | | | $ | (621,701) | | Equity in net earnings from investments | | $ | 122,520 | | | $ | — | | | $ | 122,520 | | Investments in unconsolidated affiliates | | $ | 797,613 | | | $ | — | | | $ | 797,613 | | Total assets | | $ | 23,414,634 | | | $ | 206,979 | | | $ | 23,621,613 | | Capital expenditures | | $ | 674,731 | | | $ | 22,123 | | | $ | 696,854 | |
(a) - Noncustomer revenue for the year ended December 31, 2021, totaled $(565.0) million related primarily to losses from derivatives on commodity contracts. | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2020 | | Natural 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 sales | | 771,486 | | | — | | | 8,693 | | | 780,179 | | Gathering, processing and exchange services revenue | | 141,943 | | | 488,574 | | | — | | | 630,517 | | Transportation and storage revenue | | — | | | 182,915 | | | 470,097 | | | 653,012 | | Other | | 17,304 | | | 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 other | | 1,952 | | | 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 revenues 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, 2020 | | Total 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 sales | | 780,179 | | | (10,860) | | | 769,319 | | Gathering, processing and exchange services revenue | | 630,517 | | | — | | | 630,517 | | Transportation and storage revenue | | 653,012 | | | (14,599) | | | 638,413 | | Other | | 27,688 | | | (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, 2019 | | Natural 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 sales | | 966,149 | | | — | | | 1,244 | | | 967,393 | | Gathering, processing and exchange services revenue | | 164,299 | | | 414,238 | | | — | | | 578,537 | | Transportation and storage revenue | | — | | | 197,483 | | | 466,266 | | | 663,749 | | Other | | 13,813 | | | 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 other | | 10,965 | | | 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, 2019 | | Total 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 sales | | 967,393 | | | (1,418) | | | 965,975 | | Gathering, processing and exchange services revenue | | 578,537 | | | — | | | 578,537 | | Transportation and storage revenue | | 663,749 | | | (15,646) | | | 648,103 | | Other | | 28,252 | | | (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. | | | | | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | | 2021 | | 2020 | | 2019 | Reconciliation of net income to total segment adjusted EBITDA | | (Thousands of dollars) | Net income | | $ | 1,499,706 | | | $ | 612,809 | | | $ | 1,278,577 | | Add: | | | | | | | Interest expense, net of capitalized interest | | 732,924 | | | 712,886 | | | 491,773 | | Depreciation and amortization | | 621,701 | | | 578,662 | | | 476,535 | | Income tax expense | | 484,498 | | | 189,507 | | | 372,414 | | Impairment charges | | — | | | 644,930 | | | — | | Noncash compensation expense | | 42,592 | | | 8,540 | | | 26,699 | | Other corporate costs and equity AFUDC (a) | | (845) | | | (42,631) | | | (68,767) | | Total segment adjusted EBITDA | | $ | 3,380,576 | | | $ | 2,704,703 | | | $ | 2,577,231 | |
(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.
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