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.

We have long-term and short-term payment obligations under debt agreements. In total, the principal amount of our consolidated debt obligations were $33.1 billion and $32.2 billion at June 30, 2025 and December 31, 2024, respectively. See Note 7 for additional information regarding our scheduled future maturities of debt principal.

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


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	$	193	$	191	8 years	4.5%
Transportation equipment	37		38		3 years	4.8%
Office and warehouse space	165		199		11 years	3.3%
Total operating leases	395		428
Finance leases
Transportation equipment	18		18		4 years	4.8%
Total finance leases	18		18
Total leases	$	413	$	446

(2)At June 30, 2025, operating lease liabilities of $99 million and $329 million were included within “Other current liabilities” and “Other long-term liabilities,” respectively. Additionally at June 30, 2025, finance lease liabilities of $3 million and $15 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.


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Long-term leases:
Fixed operating lease expense:
Non-cash lease expense (amortization of ROU assets)	$	27	$	23	$	55	$	43
Related accretion expense on lease liability balances	5		4		9		8
Total fixed operating lease expense	32		27		64		51
Fixed finance lease expense:
Amortization of ROU assets	1		–		1		–
Interest on finance lease liabilities	1		–		1		–
Total fixed finance lease expense	2		–		2		–
Variable lease expense	4		4		9		8
Total long-term lease expense	38		31		75		59
Short-term leases	38		30		73		59
Total lease expense	$	76	$	61	$	148	$	118

Cash paid for operating lease liabilities was $32 million and $27 million for the three months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, cash paid for operating lease liabilities was $66 million and $57 million, respectively. Cash paid for finance leases was $1 million for the three and six months ended June 30, 2025.

Operating lease income for each of the three months ended June 30, 2025 and 2024 was $3 million. Operating lease income for each of the six months ended June 30, 2025 and 2024 was $7 million.

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 June 30, 2025 did not differ materially from those reported in our 2024 Form 10-K.