Discontinued Operations

3 Months Ended

Mar. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

In December 2023, a subsidiary of NEP completed the sale of its ownership interests in the Texas pipelines. NEP's results of operations for the Texas pipelines are presented as income from discontinued operations on its condensed consolidated statement of income (loss) for the three months ended March 31, 2023.

The table below presents the financial results of the Texas pipelines included in income from discontinued operations:

	Three Months Ended March 31, 2023
	(millions)
OPERATING REVENUES(a)	$	56
OPERATING EXPENSES
Operations and maintenance(b)	8
Depreciation and amortization	9
Taxes other than income taxes and other	1
Total operating expenses – net	18
OPERATING INCOME	38
OTHER DEDUCTIONS
Interest expense	(4)
Other – net	(1)
Total other deductions – net	(5)
INCOME BEFORE INCOME TAXES	33
INCOME TAXES	2
INCOME FROM DISCONTINUED OPERATIONS(c)	$	31

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(a)    Represents service revenues earned under gas transportation agreements. Includes related party revenues of approximately $7 million.

(b)    Includes related party amounts of approximately $5 million.

(c)    Includes net income attributable to noncontrolling interests of approximately $25 million. Income tax expense attributable to noncontrolling interests is less than $1 million.

NEP has elected not to separately disclose discontinued operations on its condensed consolidated statement of cash flows. The table below presents cash flows from discontinued operations for major captions on the condensed consolidated statement of cash flows related to the Texas pipelines:

	Three Months Ended March 31, 2023
	(millions)
Depreciation and amortization	$	9
Change in value of derivative contracts	$	2
Deferred income taxes	$	2
Capital expenditures and other investments	$	(25)