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Risk Management (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
As of September 30, 2014, we had the following outstanding commodity forward contracts to hedge our forecasted energy commodity purchases and sales:
 
Net open position long/(short)
Derivatives designated as hedging contracts
 
 
 
Crude oil fixed price
(22.3)
 
MMBbl
Natural gas fixed price
(25.3)
 
Bcf
Natural gas basis
(23.5)
 
Bcf
Derivatives not designated as hedging contracts
 
 
 
Crude oil fixed price
(0.2)
 
MMBbl
Crude oil basis
(3.3)
 
MMBbl
Natural gas fixed price
(4.5)
 
Bcf
Natural gas basis
(4.1)
 
Bcf
NGL fixed price
(0.4)
 
MMBbl
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table summarizes the fair values of our derivative contracts included on our accompanying consolidated balance sheets (in millions):
Fair Value of Derivative Contracts
 
 
 
Asset derivatives
 
Liability derivatives
 
 
 
September 30,
2014
 
December 31,
2013
 
September 30,
2014
 
December 31,
2013
 
Balance sheet location
 
Fair value
 
Fair value
 
Fair value
 
Fair value
Derivatives designated as hedging contracts
 
 
 
 
 
 
 
 
 
Energy commodity derivative contracts
Other current assets/(Other current liabilities)
 
$
42

 
$
18

 
$
(12
)
 
$
(33
)
 
Deferred charges and other assets/(Other long-term liabilities and deferred credits)
 
18

 
58

 
(22
)
 
(30
)
Subtotal
 
 
60

 
76

 
(34
)
 
(63
)
Interest rate swap agreements
Other current assets/(Other current liabilities)
 
111

 
76

 
(2
)
 
—

 
Deferred charges and other assets/(Other long-term liabilities and deferred credits)
 
163

 
141

 
(68
)
 
(116
)
Subtotal
 
 
274

 
217

 
(70
)
 
(116
)
Total
 
 
334

 
293

 
(104
)
 
(179
)
Derivatives not designated as hedging contracts
 
 
 
 
 
 
 
 
 
Energy commodity derivative contracts
Other current assets/(Other current liabilities)
 
7

 
4

 
(5
)
 
(5
)
Total
 
 
7

 
4

 
(5
)
 
(5
)
Total derivatives
 
 
$
341

 
$
297

 
$
(109
)
 
$
(184
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following three tables summarize the impact of our derivative contracts on our accompanying consolidated statements of income (in millions):
Derivatives in fair value hedging
relationships
 
Location of gain/(loss) recognized
in income on derivatives
 
Amount of gain/(loss) recognized in income
on derivatives and related hedged item(a)
 
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
 
 
2014
 
2013
 
2014
 
2013
Interest rate swap agreements
 
Interest expense
 
$
(21
)
 
$
(23
)
 
$
103

 
$
(317
)
Total
 
 
 
$
(21
)
 
$
(23
)
 
$
103

 
$
(317
)
Fixed rate debt
 
Interest expense
 
$
21

 
$
23

 
$
(103
)
 
$
317

Total
 
 
 
$
21

 
$
23

 
$
(103
)
 
$
317

______________
(a)
Amounts reflect the change in the fair value of interest rate swap agreements and the change in the fair value of the associated fixed rate debt, which exactly offset each other as a result of no hedge ineffectiveness.
Derivatives in
cash flow hedging
relationships
 
Amount of gain/(loss)
recognized in other 
comprehensive income on
derivative (effective
portion)(a)
 
Location of
gain/(loss)
reclassified from
Accumulated 
other 
comprehensive income
into income
(effective portion)
 
Amount of gain/(loss)
reclassified from
Accumulated other 
comprehensive income
into income
(effective portion)(b)
 
Location of
gain/(loss)
recognized in
income on
derivative
(ineffective portion
and amount
excluded from
effectiveness
testing)
 
Amount of gain/(loss)
recognized in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
 
 
Three Months Ended
September 30,
 
 
 
Three Months Ended
September 30,
 
 
 
Three Months Ended
September 30,
 
 
2014
 
2013
 
 
 
2014
 
2013
 
 
 
2014
 
2013
Energy commodity derivative contracts
 
$
156

 
$
(102
)
 
Revenues-Natural gas sales
 
$
6

 
$
—

 
Revenues-Natural gas sales
 
$
—

 
$
—

 
 
 
 
 
 
Revenues-Product sales and other
 
(4
)
 
(30
)
 
Revenues-Product sales and other
 
26

 
(8
)
 
 
 
 
 
 
Costs of sales
 
(1
)
 
5

 
Costs of sales
 
—

 
—

Total
 
$
156

 
$
(102
)
 
Total
 
$
1

 
$
(25
)
 
Total
 
$
26

 
$
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
September 30,
 
 
 
Nine Months Ended
September 30,
 
 
 
Nine Months Ended
September 30,
 
 
2014
 
2013
 
 
 
2014
 
2013
 
 
 
2014
 
2013
Energy commodity derivative contracts
 
$
(13
)
 
$
(73
)
 
Revenues-Natural gas sales
 
$
(6
)
 
$
—

 
Revenues-Natural gas sales
 
$
—

 
$
—

 
 
 
 
 
 
Revenues-Product sales and other
 
(36
)
 
(15
)
 
Revenues-Product sales and other
 
(6
)
 
(2
)
 
 
 
 
 
 
Costs of sales
 
7

 
—

 
Costs of sales
 
—

 
—

Total
 
$
(13
)
 
$
(73
)
 
Total
 
$
(35
)
 
$
(15
)
 
Total
 
$
(6
)
 
$
(2
)
______________
(a)
We expect to reclassify an approximate $33 million gain associated with energy commodity price risk management activities included in our Partners’ Capital as of September 30, 2014 into earnings during the next twelve months (when the associated forecasted sales and purchases are also expected to occur); however, actual amounts reclassified into earnings could vary materially as a result of changes in market prices.
(b)
Amounts reclassified were the result of the hedged forecasted transactions actually affecting earnings (i.e., when the forecasted sales and purchases actually occurred).
Derivatives not designated
as accounting hedges
 
Location of gain/(loss) recognized
in income on derivatives
 
Amount of gain/(loss) recognized in income on derivatives
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
 
 
2014
 
2013
 
2014
 
2013
Energy commodity derivative contracts
 
Revenues-Natural gas sales
 
$
4

 
$
—

 
$
(12
)
 
$
—

 
 
Revenues-Product sales and other
 
5

 
(11
)
 
4

 
(7
)
 
 
Costs of sales
 
(3
)
 
2

 
4

 
2

 
 
Other expense (income)
 
—

 
(1
)
 
(2
)
 
(1
)
Total
 
 
 
$
6

 
$
(10
)
 
$
(6
)
 
$
(6
)
Amounts reclassified out of comprehensive income [Table Text Block]
Changes in the components of our “Accumulated other comprehensive (loss) income” not including non-controlling interests are summarized as follows (in millions):
 
Net unrealized
gains/(losses)
on cash flow
hedge derivatives
 
Foreign
currency
translation
adjustments
 
Pension and
other
postretirement
liability adjs.
 
Total
Accumulated other
comprehensive
income/(loss)
Balance as of December 31, 2013
$
24

 
$
(4
)
 
$
13

 
$
33

Other comprehensive (loss) income before reclassifications
(13
)
 
(104
)
 
(4
)
 
(121
)
Amounts reclassified from accumulated other comprehensive income
35

 
—

 
—

 
35

Net current-period other comprehensive (loss) income
22

 
(104
)
 
(4
)
 
(86
)
Balance as of September 30, 2014
$
46

 
$
(108
)
 
$
9

 
$
(53
)


 
Net unrealized
gains/(losses)
on cash flow
hedge derivatives
 
Foreign
currency
translation
adjustments
 
Pension and
other
postretirement
liability adjs.
 
Total
Accumulated other
comprehensive
income/(loss)
Balance as of December 31, 2012
$
66

 
$
132

 
$
(30
)
 
$
168

Other comprehensive (loss) income before reclassifications
(72
)
 
(72
)
 
32

 
(112
)
Amounts reclassified from accumulated other comprehensive income
15

 
—

 
—

 
15

Net current-period other comprehensive (loss) income
(57
)
 
(72
)
 
32

 
(97
)
Balance as of September 30, 2013
$
9

 
$
60

 
$
2

 
$
71