Revenue Recognition (Notes)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

15.  Revenue Recognition

Nature of Revenue by Segment

Natural Gas Pipelines Segment

We provide various types of natural gas transportation and storage services, natural gas and NGL sales contracts, and various types of gathering and processing services for producers, including receiving, compressing, transporting and re-delivering quantities of natural gas and/or NGLs made available to us by producers to a specified delivery location.

Natural Gas Transportation and Storage Contracts

The natural gas we receive under our transportation and storage contracts remains under the control of our customers. Under firm service contracts, the customer generally pays a two-part transaction price that includes (i) a fixed take-or-pay reservation fee and (ii) a fee-based per-unit rate for quantities of natural gas actually transported or injected into/withdrawn from storage. Under non-firm service contracts, generally described as interruptible service, the customer pays a transaction price on a fee-based per-unit rate for the quantities actually transported or injected into/withdrawn from storage.

Natural Gas and NGL Sales Contracts

Our sales and purchases of natural gas and NGL are primarily accounted for on a gross basis as natural gas sales or product sales, as applicable, and cost of sales. These customer contracts generally provide for the customer to nominate a specified quantity of commodity products to be delivered and sold to the customers at specified delivery points. The customer pays a transaction price typically based on a market indexed per-unit rate for the quantities sold.

Gathering and Processing Contracts

We provide various types of gathering and processing services for producers, including receiving, processing, compressing, transporting and re-delivering quantities of natural gas made available to us by producers to a specified delivery location. This integrated service can be firm if subject to a minimum volume commitment or acreage dedication or non-firm when offered on an as requested, non-guaranteed basis. In our gathering contracts we generally promise to provide the contracted integrated services each day over the life of the contract. The customer pays a transaction price typically based on a per-unit rate for the quantities actually gathered and/or processed, including amounts attributable to deficiency quantities associated with minimum volume contracts.

Products Pipelines Segment

We provide crude oil and refined petroleum transportation and storage services on a firm or non-firm basis. For our firm transportation service, the customer is obligated to pay for its minimum volume commitment amount, regardless of whether or not it flows volumes into our pipeline. The customer pays a transaction price typically based on a per-unit rate for quantities transported, including amounts attributable to deficiency quantities. Our firm storage service generally includes a fixed take-or-pay monthly reservation fee for the portion of storage capacity reserved by the customer and a per-unit rate for actual quantities injected into/withdrawn from storage. Under the non-firm transportation and storage service the customer typically pays a per-unit rate for actual quantities of product injected into/withdrawn from storage and/or transported.

We sell transmix, crude oil or other commodity products. The customer’s contracts generally include a specified quantity of commodity products to be delivered and sold to the customers at specified delivery points. The customer pays a transaction price typically based on a market indexed per-unit rate for the quantities sold.

Terminals Segment

We provide various types of liquid tank and bulk terminal services. These services are generally comprised of inbound, storage and outbound handling of customer products.

Liquids Tank Services

Firm Storage and Handling Contracts: We have liquids tank storage and handling service contracts that include a promised tank storage capacity provision and prepaid volume throughput of the stored product. In these contracts, the customers have fixed take-or-pay monthly obligation which generally include a per-unit rate for any quantities we handle at the request of the customer in excess of the prepaid volume throughput amount and also typically include per-unit rates for additional, ancillary services that may be periodically requested by the customer.

Firm Handling Contracts: For our firm handling service contracts, we typically promise to handle on a stand-ready basis throughput volumes up to the customer’s minimum volume commitment amount. The customer is obligated to pay for its minimum volume commitment amount, regardless of whether or not it used the handling service. The customer pays a transaction price typically based on a per-unit rate for volumes handled, including amounts attributable to deficiency quantities.

Bulk Services

Our bulk storage and handling contracts generally include inbound handling of our customers’ dry bulk material product (e.g. petcoke, metals, ores) into our storage facility and outbound handling of these products from our storage facility. These services are provided on both a firm basis, including amounts attributable to deficiency quantities, and non-firm basis where the customer pays a transaction price typically based on a per-unit rate for quantities handled on an as requested, non-guaranteed basis.

CO2 Segment

Our crude oil, NGL, CO2 and natural gas production customer sales contracts typically include a specified quantity and quality of commodity product to be delivered and sold to the customer at a specified delivery point. The customer pays a transaction price typically based on a market indexed per-unit rate for the quantities sold.

Disaggregation of Revenues

The following tables present our revenues disaggregated by revenue source and type of revenue for each revenue source:

	Year Ended December 31, 2021
	Natural Gas Pipelines		Products Pipelines		Terminals		CO2		Corporate and Eliminations		Total
	(In millions)
Revenues from contracts with customers(a)
Services
Firm services(b)	$	3,402	$	259	$	751	$	1	$	(2)	$	4,411
Fee-based services	746		949		375		45		(1)		2,114
Total services	4,148		1,208		1,126		46		(3)		6,525
Commodity sales
Natural gas sales	6,463		—		—		32		(15)		6,480
Product sales	1,260		845		24		1,070		(50)		3,149
Total commodity sales	7,723		845		24		1,102		(65)		9,629
Total revenues from contracts with customers	11,871		2,053		1,150		1,148		(68)		16,154
Other revenues(c)
Leasing services(d)	473		172		565		56		—		1,266
Derivatives adjustments on commodity sales	(700)		(1)		—		(222)		—		(923)
Other	65		21		—		27		—		113
Total other revenues	(162)		192		565		(139)		—		456
Total revenues	$	11,709	$	2,245	$	1,715	$	1,009	$	(68)	$	16,610

	Year Ended December 31, 2020
	Natural Gas Pipelines		Products Pipelines		Terminals		CO2		Corporate and Eliminations		Total
	(In millions)
Revenues from contracts with customers(a)
Services
Firm services(b)	$	3,345	$	271	$	756	$	1	$	(3)	$	4,370
Fee-based services	714		905		395		42		—		2,056
Total services	4,059		1,176		1,151		43		(3)		6,426
Commodity sales
Natural gas sales	2,038		—		—		1		(7)		2,032
Product sales	562		358		14		735		(30)		1,639
Total commodity sales	2,600		358		14		736		(37)		3,671
Total revenues from contracts with customers	6,659		1,534		1,165		779		(40)		10,097
Other revenues(c)
Leasing services(d)	466		166		557		47		—		1,236
Derivatives adjustments on commodity sales	18		—		—		203		—		221
Other	116		21		—		9		—		146
Total other revenues	600		187		557		259		—		1,603
Total revenues	$	7,259	$	1,721	$	1,722	$	1,038	$	(40)	$	11,700

	Year Ended December 31, 2019
	Natural Gas Pipelines		Products Pipelines		Terminals		CO2		Corporate and Eliminations		Total
	(In millions)
Revenues from contracts with customers(a)
Services
Firm services(b)	$	3,549	$	319	$	1,012	$	1	$	(4)	$	4,877
Fee-based services	780		1,016		560		60		—		2,416
Total services	4,329		1,335		1,572		61		(4)		7,293
Commodity sales
Natural gas sales	2,603		—		—		1		(9)		2,595
Product sales	805		289		20		1,111		(33)		2,192
Total commodity sales	3,408		289		20		1,112		(42)		4,787
Total revenues from contracts with customers	7,737		1,624		1,592		1,173		(46)		12,080
Other revenues(c)
Leasing services(d)	273		182		442		54		—		951
Derivatives adjustments on commodity sales	70		—		—		(21)		—		49
Other	90		25		—		13		1		129
Total other revenues	433		207		442		46		1		1,129
Total revenues	$	8,170	$	1,831	$	2,034	$	1,219	$	(45)	$	13,209

(a)Differences between the revenue classifications presented on the consolidated statements of income and the categories for the disaggregated revenues by type of revenue above are primarily attributable to revenues reflected in the “Other revenues” category above (see note (c)).

(b)Includes non-cancellable firm service customer contracts with take-or-pay or minimum volume commitment elements, including those contracts where both the price and quantity amount are fixed. Excludes service contracts with indexed-based pricing, which along with revenues from other customer service contracts are reported as Fee-based services.

(c)Amounts recognized as revenue under guidance prescribed in Topics of the ASC other than in Topic 606 were primarily from leases and derivative contracts. See Note 14 for additional information related to our derivative contracts.

(d)Our revenues from leasing services are predominantly comprised of specific assets that we lease to customers under operating leases where one customer obtains substantially all of the economic benefit from the asset and has the right to direct the use of that asset. These leases primarily consist of specific tanks, treating facilities, marine vessels and gas equipment and pipelines with separate control locations. We do not lease assets that qualify as sales-type or finance leases.

Contract Balances

As of December 31, 2021 and 2020, our contract asset balances were $39 million and $20 million, respectively. Of the contract asset balance at December 31, 2020, $18 million was transferred to accounts receivable during the year ended December 31. 2021. As of December 31, 2021 and 2020, our contract liability balances were $212 million and $239 million, respectively. Of the contract liability balance at December 31, 2020, $83 million was recognized as revenue during the year ended December 31, 2021.

Revenue Allocated to Remaining Performance Obligations

The following table presents our estimated revenue allocated to remaining performance obligations for contracted revenue that has not yet been recognized, representing our “contractually committed” revenue as of December 31, 2021 that we will invoice or transfer from contract liabilities and recognize in future periods:

Year	Estimated Revenue
	(In millions)
2022	$	4,324
2023	3,418
2024	2,857
2025	2,382
2026	2,108
Thereafter	12,618
Total	$	27,707

Our contractually committed revenue, for purposes of the tabular presentation above, is generally limited to service or commodity sale customer contracts which have fixed pricing and fixed volume terms and conditions, generally including contracts with take-or-pay or minimum volume commitment payment obligations. Our contractually committed revenue amounts generally exclude, based on the following practical expedient that we elected to apply, remaining performance obligations for contracts with index-based pricing or variable volume attributes in which such variable consideration is allocated entirely to a wholly unsatisfied performance obligation.