Segment Disclosures

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Disclosures [Text Block]

Note 18 – Segment Disclosures

Our reportable segments are Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services. All remaining business activities are included in Other. (See Note 1 – General, Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies.)

Performance Measurement

We evaluate segment operating performance based upon Modified EBITDA. This measure represents the basis of our internal financial reporting and is the primary performance measure used by our chief operating decision maker in measuring performance and allocating resources among our reportable segments. Intersegment Service revenues primarily represent transportation services provided to our marketing business and gathering services provided to our oil and gas properties. Intersegment Product sales primarily represent the sale of natural gas and NGLs from our natural gas processing plants and our oil and gas properties to our marketing business.

We define Modified EBITDA as follows:

•Net income (loss) before:

◦Provision (benefit) for income taxes;

◦Interest incurred, net of interest capitalized;

◦Equity earnings (losses);

◦Impairment of equity-method investments;

◦Other investing income (loss) – net;

◦Impairment of goodwill;

◦Depreciation and amortization expenses;

◦Accretion expense associated with asset retirement obligations for nonregulated operations.

•This measure is further adjusted to include our proportionate share (based on ownership interest) of Modified EBITDA from our equity-method investments calculated consistently with the definition described above.

The following table reflects the reconciliation of Modified EBITDA to Net income (loss) as reported in our Consolidated Statement of Income:

	Year Ended December 31,
	2022		2021		2020
	(Millions)
Modified EBITDA by segment:
Transmission & Gulf of Mexico	$	2,674	$	2,621	$	2,379
Northeast G&P	1,796		1,712		1,489
West	1,211		961		947
Gas & NGL Marketing Services (1)	(40)		22		51
Other	434		178		(15)
	6,075		5,494		4,851
Accretion expense associated with asset retirement obligations for nonregulated operations	(51)		(45)		(35)
Depreciation and amortization expenses	(2,009)		(1,842)		(1,721)
Impairment of goodwill	—		—		(187)
Equity earnings (losses)	637		608		328
Impairment of equity-method investments	—		—		(1,046)
Other investing income (loss) – net	16		7		8
Proportional Modified EBITDA of equity-method investments	(979)		(970)		(749)
Interest expense	(1,147)		(1,179)		(1,172)
(Provision) benefit for income taxes	(425)		(511)		(79)
Net income (loss)	$	2,117	$	1,562	$	198

____________

(1)    Modified EBITDA for 2022, 2021, and 2020, includes charges of $161 million, $15 million, and $17 million respectively, associated with lower of cost or net realizable value adjustments to our inventory. These charges are reflected in Product Sales or Product costs in our Consolidated Statement of Income (see Note 1 – General, Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies). Net unrealized commodity-related derivatives gains of $47 million in 2022 and $0 in 2021 and 2020 are reflected in Net processing commodity expenses.

The following table reflects the reconciliation of Segment revenues to Total revenues as reported in the Consolidated Statement of Income and Other financial information:

	Transmission & Gulf of Mexico		Northeast G&P		West		Gas & NGL Marketing Services (1)		Other		Eliminations		Total
	(Millions)
2022
Segment revenues:
Service revenues
External	$	3,461	$	1,613	$	1,443	$	3	$	16	$	—	$	6,536
Internal	118		41		99		—		8		(266)		—
Total service revenues	3,579		1,654		1,542		3		24		(266)		6,536
Total service revenues – commodity consideration	64		14		182		—		—		—		260
Product sales
External	228		28		145		4,052		103		—		4,556
Internal	176		106		696		(518)		603		(1,063)		—
Total product sales	404		134		841		3,534		706		(1,063)		4,556
Net gain (loss) on commodity derivatives
Realized	—		—		(4)		17		(104)		—		(91)
Unrealized	—		—		—		(321)		25		—		(296)
Total net gain (loss) on commodity derivatives (2)	—		—		(4)		(304)		(79)		—		(387)
Total revenues	$	4,047	$	1,802	$	2,561	$	3,233	$	651	$	(1,329)	$	10,965
Other financial information:
Additions to long-lived assets	$	1,420	$	261	$	1,507	$	4	$	406	$	—	$	3,598
Proportional Modified EBITDA of equity-method investments	193		654		132		—		—		—		979
2021
Segment revenues:
Service revenues
External	$	3,310	$	1,490	$	1,178	$	3	$	20	$	—	$	6,001
Internal	75		38		70		—		12		(195)		—
Total service revenues	3,385		1,528		1,248		3		32		(195)		6,001
Total service revenues – commodity consideration	52		7		179		—		—		—		238
Product sales
External	231		13		60		4,094		138		—		4,536
Internal	118		86		583		198		195		(1,180)		—
Total product sales	349		99		643		4,292		333		(1,180)		4,536
Net gain (loss) on commodity derivatives
Realized	—		—		(44)		25		(20)		—		(39)
Unrealized	—		—		—		(109)		—		—		(109)
Total net gain (loss) on commodity derivatives (2)	—		—		(44)		(84)		(20)		—		(148)
Total revenues	$	3,786	$	1,634	$	2,026	$	4,211	$	345	$	(1,375)	$	10,627
Other financial information:
Additions to long-lived assets	$	861	$	164	$	209	$	1	$	620	$	—	$	1,855
Proportional Modified EBITDA of equity-method investments	183		682		105		—		—		—		970

	Transmission & Gulf of Mexico		Northeast G&P		West		Gas & NGL Marketing Services (1)		Other		Eliminations		Total
	(Millions)
2020
Segment revenues:
Service revenues
External	$	3,207	$	1,416	$	1,248	$	32	$	21	$	—	$	5,924
Internal	50		49		24		—		13		(136)		—
Total service revenues	3,257		1,465		1,272		32		34		(136)		5,924
Total service revenues – commodity consideration	21		7		101		—		—		—		129
Product sales
External	144		16		20		1,491		—		—		1,671
Internal	47		41		132		111		—		(331)		—
Total product sales	191		57		152		1,602		—		(331)		1,671
Net gain (loss) on commodity derivatives
Realized	—		—		(2)		(3)		—		—		(5)
Unrealized	—		—		—		—		—		—		—
Total net gain (loss) on commodity derivatives (2)	—		—		(2)		(3)		—		—		(5)
Total revenues	$	3,469	$	1,529	$	1,523	$	1,631	$	34	$	(467)	$	7,719
Other financial information:
Additions to long-lived assets	$	706	$	137	$	318	$	—	$	122	$	—	$	1,283
Proportional Modified EBITDA of equity-method investments	166		473		110		—		—		—		749

______________

(1)    See Note 1 – General, Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies.

(2)    We record transactions that qualify as derivatives at fair value with changes in fair value recognized in earnings in the period of change and characterized as unrealized gains or losses. Gains and losses on derivatives held for energy trading purposes are presented on a net basis in revenue.

Segment assets include Investments, Property, plant, and equipment – net, and Intangible assets – net of accumulated amortization. The following table reflects segment assets and equity-method investments by reportable segments:

	Segment Assets				Equity-Method Investments
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
	(Millions)
Transmission & Gulf of Mexico	$	17,795	$	17,142	$	629	$	602
Northeast G&P	13,539		13,861		3,566		3,681
West	10,710		9,698		843		838
Gas & NGL Marketing Services	130		294		—		—
Other	1,143		792		10		—
Total	43,317		41,787		$	5,048	$	5,121
Total current assets	3,797		4,549
Regulatory assets, deferred charges, and other	1,319		1,276
Total assets	$	48,433	$	47,612