Business Segments and Related Information (Tables)

3 Months Ended

Mar. 31, 2025

Measurement of Total Segment Gross Operating Margin

The following table presents a reconciliation of total segment gross operating margin to income before income taxes for the periods indicated:

	For the Three Months Ended March 31,
	2025			2024
Total segment gross operating margin	$	2,464		$	2,507
Adjustments to reconcile total segment gross operating margin to income before income taxes (addition or subtraction indicated by sign):
Depreciation, amortization and accretion expense in operating costs and expenses (1)		(602	)		(582	)
Asset impairment charges in operating costs and expenses		(10	)		(20	)
Net gains attributable to asset sales and related matters in operating costs and expenses		2			–
General and administrative costs		(60	)		(66	)
Non-refundable payments received from shippers attributable to make-up rights (2)		(37	)		(25	)
Subsequent recognition of revenues attributable to make-up rights (3)		4			8
Total other expense, net (4)		(331	)		(318	)
Income before income taxes	$	1,430		$	1,504

(1)	Excludes amortization of major maintenance costs for reaction-based plants and amortization of finance lease right-of-use (“ROU”) assets, which are components of gross operating margin.
(2)	Since make-up rights entail a future performance obligation by the pipeline to the shipper, these receipts are recorded as deferred revenue for GAAP purposes; however, these receipts are included in gross operating margin in the period of receipt since they are nonrefundable to the shipper.
(3)	As deferred revenues attributable to make-up rights are subsequently recognized as revenue under GAAP, gross operating margin must be adjusted to remove such amounts to prevent duplication since the associated non-refundable payments were previously included in gross operating margin.
(4)	As presented on our Statements of Consolidated Operations, Total other expense, net is comprised of Interest expense, Interest income and Other, net.

Information by Business Segments

Summarized Segment Financial Information

The following tables present segment revenues and significant segment expenses by segment, together with a reconciliation to segment gross operating margin, for the periods indicated:

	For the Three Months Ended March 31, 2025
	NGL Pipelines & Services		Crude Oil Pipelines & Services		Natural Gas Pipelines & Services		Petrochemical & Refined Products Services		Segment Total
Segment revenues:
Revenues from third parties	$	5,398	$	5,115	$	1,216	$	3,675	$	15,404
Revenues from related parties		2		6		5		–		13
Intersegment and intrasegment revenues		17,017		10,622		232		7,195		35,066
Total segment revenues		22,417		15,743		1,453		10,870		50,483
Significant segment expenses:
Cost of sales		20,433		15,307		899		10,156		46,795
Variable operating costs and expenses (1)		199		35		22		106		362
Fixed operating costs and expenses (2)		423		101		177		294		995
Total significant segment expenses		21,055		15,443		1,098		10,556		48,152
Other segment income:
Equity in income of unconsolidated affiliates		20		72		2		–		94
Other segment items (3)		36		2		–		1		39
Total other segment income		56		74		2		1		133
Total segment gross operating margin	$	1,418	$	374	$	357	$	315	$	2,464

Other financial information:
Capital expenditures	$	635	$	23	$	303	$	101	$	1,062

(1)	Variable operating costs and expenses represent the cost of operating our plants, pipelines and other fixed assets that generally fluctuate based on utilization.
(2)	Fixed operating costs and expenses represent the cost of operating our plants, pipelines and other fixed assets that generally remain constant independent of utilization.
(3)	Other segment items for each segment primarily represent the following: • NGL Pipelines & Services – Non-refundable payments received from shippers attributable to make-up rights and subsequent recognition of revenues attributable to make-up rights. • Crude Oil Pipelines & Services – Other segment expenses. • Petrochemical & Refined Products Services – Other segment expenses.

	For the Three Months Ended March 31, 2024
	NGL Pipelines & Services		Crude Oil Pipelines & Services			Natural Gas Pipelines & Services		Petrochemical & Refined Products Services			Segment Total
Segment revenues:
Revenues from third parties	$	5,137	$	5,406		$	851	$	3,351		$	14,745
Revenues from related parties		3		9			3		–			15
Intersegment and intrasegment revenues		11,555		13,827			177		6,324			31,883
Total segment revenues		16,695		19,242			1,031		9,675			46,643
Significant segment expenses:
Cost of sales		14,810		18,749			558		8,875			42,992
Variable operating costs and expenses (1)		174		46			15		94			329
Fixed operating costs and expenses (2)		425		104			150		249			928
Total significant segment expenses		15,409		18,899			723		9,218			44,249
Other segment income (expense):
Equity in income of unconsolidated affiliates		31		69			2		–			102
Other segment items (3)		23		(1	)		2		(13	)		11
Total other segment income (expense), net		54		68			4		(13	)		113
Total segment gross operating margin	$	1,340	$	411		$	312	$	444		$	2,507

Other financial information:
Capital expenditures	$	577	$	37		$	204	$	229		$	1,047

(1)	Variable operating costs and expenses represent the cost of operating our plants, pipelines and other fixed assets that generally fluctuate based on utilization.
(2)	Fixed operating costs and expenses represent the cost of operating our plants, pipelines and other fixed assets that generally remain constant independent of utilization.
(3)	Other segment items for each segment primarily represent the following: • NGL Pipelines & Services – Non-refundable payments received from shippers attributable to make-up rights and subsequent recognition of revenues attributable to make-up rights. • Crude Oil Pipelines & Services – Other segment expenses. • Natural Gas Pipelines & Services – Other segment expenses. • Petrochemical & Refined Products Services – Other segment expenses.

The following table reconciles total segment revenues as reported in the preceding tables to consolidated revenues as presented on our Unaudited Condensed Statements of Consolidated Operations:

	For the Three Months Ended March 31,
	2025			2024
Segment revenues:
NGL Pipelines & Services	$	22,417		$	16,695
Crude Oil Pipelines & Services		15,743			19,242
Natural Gas Pipelines & Services		1,453			1,031
Petrochemical & Refined Products Services		10,870			9,675
Total segment revenues		50,483			46,643
Elimination of intersegment and intrasegment revenues		(35,066	)		(31,883	)
Total consolidated revenues	$	15,417		$	14,760

The following table presents our segment assets, together with a reconciliation to our consolidated total assets, at the dates indicated:

	March 31, 2025		December 31, 2024
NGL Pipelines & Services	$	21,735	$	21,900
Crude Oil Pipelines & Services		11,327		11,390
Natural Gas Pipelines & Services		12,312		12,260
Petrochemical & Refined Products Services		11,276		11,350
Total segment assets		56,650		56,900
Construction in progress		4,981		4,138
Current assets		12,763		15,133
Other assets		1,012		997
Consolidated total assets	$	75,406	$	77,168

Consolidated Revenues and Expenses

The following table presents additional information regarding our consolidated revenues and costs and expenses for the periods indicated:

	For the Three Months Ended March 31,
	2025			2024
Consolidated revenues:
NGL Pipelines & Services	$	5,400		$	5,140
Crude Oil Pipelines & Services		5,121			5,415
Natural Gas Pipelines & Services		1,221			854
Petrochemical & Refined Products Services		3,675			3,351
Total consolidated revenues	$	15,417		$	14,760

Consolidated costs and expenses
Operating costs and expenses:
Cost of sales	$	12,005		$	11,405
Other operating costs and expenses (1)		1,059			954
Depreciation, amortization and accretion		618			595
Asset impairment charges		10			20
Net gains attributable to asset sales and related matters		(2	)		–
General and administrative costs		60			66
Total consolidated costs and expenses	$	13,750		$	13,040

(1)	Represents the cost of operating our plants, pipelines and other fixed assets excluding depreciation, amortization and accretion charges; asset impairment charges; and net gains attributable to asset sales and related matters.