Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 17.  Commitments and Contingent Liabilities

Litigation

As part of our normal business activities, we may be named as defendants in legal proceedings, including those arising from regulatory and environmental matters.  Although we are insured against various risks to the extent we believe it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to fully indemnify us against losses arising from future legal proceedings.  We will vigorously defend the Partnership in litigation matters.

There were no accruals for litigation contingencies at March 31, 2025 and December 31, 2024, respectively.

Contractual Obligations

Scheduled Maturities of Debt

We have long-term and short-term payment obligations under debt agreements.  In total, the principal amount of our consolidated debt obligations were $31.9 billion and $32.2 billion at March 31, 2025 and December 31, 2024, respectively.  See Note 7 for additional information regarding our scheduled future maturities of debt principal.

Lease Accounting Matters

There has been no significant change in our operating and finance lease obligations since those disclosed in the 2024 Form 10-K.

The following table presents information regarding operating and finance leases where we are the lessee at March 31, 2025:

Asset Category	ROU Asset Carrying Value (1)		Lease Liability Carrying     Value (2)		Weighted- Average Remaining Term	Weighted- Average Discount Rate (3)
Operating leases
Storage and pipeline facilities	$	209	$	208	8 years	4.5%
Transportation equipment		40		41	4 years	4.8%
Office and warehouse space		168		203	12 years	3.4%
Total operating leases		417		452
Finance leases
Transportation equipment		12		13	4 years	4.8%
Total finance leases		12		13
Total leases	$	429	$	465

(1)	ROU asset amounts are a component of “Other assets” on our Unaudited Condensed Consolidated Balance Sheet.
(2)	At March 31, 2025, operating lease liabilities of $104 million and $348 million were included within “Other current liabilities” and “Other long-term liabilities,” respectively.  Additionally at March 31, 2025, finance lease liabilities of $2 million and $11 million were included within "Other current liabilities" and "Other long-term liabilities," respectively.
(3)	The discount rate for each category of assets represents the weighted average of either (i) the implicit rate applicable to the underlying leases (where determinable) or (ii) our incremental borrowing rate adjusted for collateralization (if the implicit rate is not determinable).  In general, the discount rates are based on either information available at the lease commencement date or January 1, 2019 for leases existing at the adoption date for ASC 842, Leases.

The following table disaggregates our total operating and finance lease expense for the periods indicated:

	For the Three Months Ended March 31,
	2025			2024
Long-term leases:
Fixed operating lease expense:
Non-cash lease expense (amortization of ROU assets)	$	28		$	20
Related accretion expense on lease liability balances		4			4
Total fixed operating lease expense		32			24
Fixed finance lease expense:
Amortization of ROU assets (1)		–	*		–
Interest on finance lease liabilities (1)		–	*		–
Total fixed finance lease expense (1)		–	*		–
Variable lease expense		5			4
Total long-term lease expense		37			28
Short-term leases		35			29
Total lease expense	$	72		$	57

(1)	For the three months ended March 31, 2025, total fixed finance lease expense, which include amortization of finance lease ROU assets and interest on finance lease liabilities, was less than $1 million.
*	Amount is negligible.

Cash paid for operating lease liabilities was $34 million and $23 million for the three months ended March 31, 2025 and 2024, respectively.

Operating lease income for each of the three months ended March 31, 2025 and 2024 was $4 million.

Purchase Obligations

We have contractual future product purchase commitments for NGLs and crude oil representing enforceable and legally binding agreements as of the reporting date.  In the ordinary course of business, we fulfill product purchase commitments with our third party suppliers.  Outside of changes related to the ordinary course of business, our consolidated product purchase commitments at March 31, 2025 did not differ materially from those reported in our 2024 Form 10-K.