Segment Disclosures [Text Block] |
Note 10 – 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, and Basis of Presentation.) 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: ◦Income (loss) from discontinued operations; ◦Provision (benefit) for income taxes; ◦Interest expense; ◦Equity earnings (losses); ◦Other investing income (loss) – net; ◦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. Significant noncash items which are components of Modified EBITDA may include unrealized net gain (loss) from commodity derivatives within Total revenues, unrealized net gain (loss) from commodity derivatives within Net processing commodity expenses for our Gas & NGL Marketing Services segment, charges associated with lower of cost or net realizable value adjustments to our inventory within Product sales and Product costs, and impairments of certain assets within Other (income) expense – net within Operating income (loss). The following table reflects the reconciliation of Modified EBITDA to Net income (loss) as reported in our Consolidated Statement of Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | | | 2024 | | 2023 | | 2024 | | 2023 | | | | | (Millions) | | | Modified EBITDA by segment: | | | | | | | | | | | Transmission & Gulf of Mexico | | $ | 811 | | | $ | 881 | | | $ | 2,448 | | | $ | 2,327 | | | | Northeast G&P | | 476 | | | 454 | | | 1,461 | | | 1,439 | | | | West | | 323 | | | 315 | | | 968 | | | 931 | | | | Gas & NGL Marketing Services | | 11 | | | 43 | | | (14) | | | 678 | | | | Total reportable segments | | 1,621 | | | 1,693 | | | 4,863 | | | 5,375 | | | | Modified EBITDA of other business activities | | 58 | | | 81 | | | 181 | | | 196 | | | | | | 1,679 | | | 1,774 | | | 5,044 | | | 5,571 | | | | Accretion expense associated with asset retirement obligations for nonregulated operations | | (17) | | | (14) | | | (56) | | | (43) | | | | Depreciation and amortization expenses | | (566) | | | (521) | | | (1,654) | | | (1,542) | | | | | | | | | | | | | | | Equity earnings (losses) | | 147 | | | 127 | | | 431 | | | 434 | | | | | | | | | | | | | | | Other investing income (loss) – net | | 290 | | | 24 | | | 332 | | | 45 | | | | Proportional Modified EBITDA of equity-method investments | | (227) | | | (215) | | | (693) | | | (693) | | | | Interest expense | | (338) | | | (314) | | | (1,026) | | | (914) | | | | (Provision) benefit for income taxes | | (227) | | | (176) | | | (549) | | | (635) | | | | Income (loss) from discontinued operations | | — | | | (1) | | | — | | | (88) | | | | Net income (loss) | | $ | 741 | | | $ | 684 | | | $ | 1,829 | | | $ | 2,135 | | | | The following table reflects the reconciliation of Segment revenues to Total revenues as reported in our Consolidated Statement of Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Transmission & Gulf of Mexico | | Northeast G&P | | West | | Gas & NGL Marketing Services (1) | | Other | | Eliminations | | Total | | (Millions) | Three Months Ended September 30, 2024 | | | | | | | | | | | | | Segment revenues: | | | | | | | | | | | | | | Service revenues | | | | | | | | | | | | | | External | $ | 1,049 | | | $ | 473 | | | $ | 385 | | | $ | — | | | $ | 4 | | | $ | — | | | $ | 1,911 | | Internal | 23 | | | 2 | | | 41 | | | — | | | — | | | (66) | | | — | | Total service revenues | 1,072 | | | 475 | | | 426 | | | — | | | 4 | | | (66) | | | 1,911 | | Total service revenues – commodity consideration | 14 | | | 1 | | | 19 | | | — | | | — | | | — | | | 34 | | Product sales | | | | | | | | | | | | | | External | 30 | | | 8 | | | 47 | | | 585 | | | 33 | | | — | | | 703 | | Internal | 54 | | | 18 | | | 171 | | | (104) | | | 62 | | | (201) | | | — | | Total product sales | 84 | | | 26 | | | 218 | | | 481 | | | 95 | | | (201) | | | 703 | | Net gain (loss) from commodity derivatives | | | | | | | | | | | | | | Realized | — | | | — | | | — | | | (8) | | | 1 | | | — | | | (7) | | Unrealized | — | | | — | | | — | | | 9 | | | 3 | | | — | | | 12 | | Total net gain (loss) from commodity derivatives (2) | — | | | — | | | — | | | 1 | | | 4 | | | — | | | 5 | | Total revenues | $ | 1,170 | | | $ | 502 | | | $ | 663 | | | $ | 482 | | | $ | 103 | | | $ | (267) | | | $ | 2,653 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2023 | | | | | | | | | | | | | Segment revenues: | | | | | | | | | | | | | | Service revenues | | | | | | | | | | | | | | External | $ | 953 | | | $ | 473 | | | $ | 340 | | | $ | — | | | $ | 4 | | | $ | — | | | $ | 1,770 | | Internal | 25 | | | 5 | | | 34 | | | — | | | — | | | (64) | | | — | | Total service revenues | 978 | | | 478 | | | 374 | | | — | | | 4 | | | (64) | | | 1,770 | | Total service revenues – commodity consideration | 11 | | | — | | | 34 | | | — | | | — | | | — | | | 45 | | Product sales | | | | | | | | | | | | | | External | 35 | | | 13 | | | 14 | | | 619 | | | 39 | | | — | | | 720 | | Internal | 28 | | | 14 | | | 98 | | | (63) | | | 79 | | | (156) | | | — | | Total product sales | 63 | | | 27 | | | 112 | | | 556 | | | 118 | | | (156) | | | 720 | | Net gain (loss) from commodity derivatives | | | | | | | | | | | | | | Realized | 1 | | | — | | | 13 | | | (31) | | | 9 | | | — | | | (8) | | Unrealized | — | | | — | | | — | | | 33 | | | (1) | | | — | | | 32 | | Total net gain (loss) from commodity derivatives (2) | 1 | | | — | | | 13 | | | 2 | | | 8 | | | — | | | 24 | | Total revenues | $ | 1,053 | | | $ | 505 | | | $ | 533 | | | $ | 558 | | | $ | 130 | | | $ | (220) | | | $ | 2,559 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Transmission & Gulf of Mexico | | Northeast G&P | | West | | Gas & NGL Marketing Services (1) | | Other | | Eliminations | | Total | | (Millions) | Nine Months Ended September 30, 2024 | | | | | | | | | | | | | Segment revenues: | | | | | | | | | | | | | | Service revenues | | | | | | | | | | | | | | External | $ | 3,077 | | | $ | 1,410 | | | $ | 1,154 | | | $ | — | | | $ | 12 | | | $ | — | | | $ | 5,653 | | Internal | 67 | | | 9 | | | 116 | | | — | | | — | | | (192) | | | — | | Total service revenues | 3,144 | | | 1,419 | | | 1,270 | | | — | | | 12 | | | (192) | | | 5,653 | | Total service revenues – commodity consideration | 28 | | | 1 | | | 53 | | | — | | | — | | | — | | | 82 | | Product sales | | | | | | | | | | | | | | External | 85 | | | 15 | | | 153 | | | 1,800 | | | 105 | | | — | | | 2,158 | | Internal | 100 | | | 59 | | | 504 | | | (309) | | | 184 | | | (538) | | | — | | Total product sales | 185 | | | 74 | | | 657 | | | 1,491 | | | 289 | | | (538) | | | 2,158 | | Net gain (loss) from commodity derivatives | | | | | | | | | | | | | | Realized | — | | | — | | | 5 | | | 40 | | | 29 | | | — | | | 74 | | Unrealized | — | | | — | | | — | | | (188) | | | (19) | | | — | | | (207) | | Total net gain (loss) from commodity derivatives (2) | — | | | — | | | 5 | | | (148) | | | 10 | | | — | | | (133) | | Total revenues | $ | 3,357 | | | $ | 1,494 | | | $ | 1,985 | | | $ | 1,343 | | | $ | 311 | | | $ | (730) | | | $ | 7,760 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2023 | | | | | | | | | | | | | Segment revenues: | | | | | | | | | | | | | | Service revenues | | | | | | | | | | | | | | External | $ | 2,801 | | | $ | 1,396 | | | $ | 1,002 | | | $ | 1 | | | $ | 12 | | | $ | — | | | $ | 5,212 | | Internal | 73 | | | 25 | | | 86 | | | — | | | — | | | (184) | | | — | | Total service revenues | 2,874 | | | 1,421 | | | 1,088 | | | 1 | | | 12 | | | (184) | | | 5,212 | | Total service revenues – commodity consideration | 29 | | | 3 | | | 76 | | | — | | | — | | | — | | | 108 | | Product sales | | | | | | | | | | | | | | External | 116 | | | 32 | | | 43 | | | 1,882 | | | 85 | | | — | | | 2,158 | | Internal | 81 | | | 72 | | | 244 | | | (224) | | | 218 | | | (391) | | | — | | Total product sales | 197 | | | 104 | | | 287 | | | 1,658 | | | 303 | | | (391) | | | 2,158 | | Net gain (loss) from commodity derivatives | | | | | | | | | | | | | | Realized | 2 | | | — | | | 85 | | | 41 | | | 41 | | | — | | | 169 | | Unrealized | — | | | — | | | — | | | 494 | | | (18) | | | — | | | 476 | | Total net gain (loss) from commodity derivatives (2) | 2 | | | — | | | 85 | | | 535 | | | 23 | | | — | | | 645 | | Total revenues | $ | 3,102 | | | $ | 1,528 | | | $ | 1,536 | | | $ | 2,194 | | | $ | 338 | | | $ | (575) | | | $ | 8,123 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ______________(1) As we are acting as agent for natural gas marketing customers or engage in energy trading activities, the resulting revenues are presented net of the related costs of those activities. (2) We record transactions that qualify as commodity 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 from commodity derivatives held for energy trading purposes are presented on a net basis in revenue.
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