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Business Segments and Related Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Business Segments and Related Information
Note 10. Business Segments and Related Information
Our operations are reported under four business segments: (i) NGL Pipelines & Services, (ii) Crude Oil Pipelines & Services, (iii) Natural Gas Pipelines & Services and (iv) Petrochemical & Refined Products Services. Our business segments are generally organized and managed according to the types of services rendered (or technologies employed) and products produced and/or sold.
Financial information regarding these segments is evaluated regularly by our co-chief operating decision makers (“CODMs”) in deciding how to allocate resources and in assessing our operating and financial performance. The co-principal executive officers of our general partner have been identified as our CODMs.
The following information summarizes the assets and operations of each business segment:
•Our NGL Pipelines & Services business segment includes our natural gas processing and related NGL marketing activities, NGL pipelines, NGL fractionation facilities, NGL and related product storage facilities, and NGL marine terminals.
•Our Crude Oil Pipelines & Services business segment includes our crude oil pipelines, crude oil storage and marine terminals, and related crude oil marketing activities.
•Our Natural Gas Pipelines & Services business segment includes our natural gas pipeline systems that provide for the gathering, treating and transportation of natural gas. This segment also includes our natural gas marketing activities.
•Our Petrochemical & Refined Products Services business segment includes our (i) propylene production facilities, which include propylene fractionation units and PDH facilities, and related pipelines and marketing activities, (ii) butane isomerization complex and related deisobutanizer operations, (iii) octane enhancement, iBDH and HPIB production facilities, (iv) refined products pipelines, terminals and related marketing activities, (v) ethylene export terminal and related operations; and (vi) marine transportation business.
Our plants, pipelines and other fixed assets are located in the U.S.
Segment Gross Operating Margin
Our CODMs evaluate segment performance based on our financial measure of gross operating margin. Gross operating margin is an important performance measure of the core profitability of our operations, forms the basis of our internal financial reporting, and is used by our CODMs on a monthly basis to monitor budgeted versus actual results. Our CODMs also consider gross operating margin results, in part, when determining how to allocate resources (e.g., employees and capital investments) to each segment, primarily in the annual budget process. We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results. Gross operating margin is exclusive of other income and expense transactions, income taxes, the cumulative effect of changes in accounting principles and extraordinary charges. Gross operating margin is presented on a 100% basis before any allocation of earnings to noncontrolling interests. Our calculation of gross operating margin may or may not be comparable to similarly titled measures used by other companies.
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 September 30,		For the Nine Months
Ended September 30,
2025202420252024
Total segment gross operating margin$2,383 $2,448 $7,318 $7,382 
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)(625)(586)(1,837)(1,749)
Asset impairment charges in operating costs and expenses(17)(27)(38)(51)
Net gains (losses) attributable to asset sales and related matters in operating costs and expenses4 – 13 (5)
General and administrative costs(61)(61)(189)(184)
Non-refundable payments received from shippers attributable to make-up rights (2)– (13)(43)(56)
Subsequent recognition of revenues attributable to make-up rights (3)2 19 18 30 
Total other expense, net (4)(343)(329)(999)(975)
Income before income taxes$1,343 $1,451 $4,243 $4,392 
(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 non-refundable 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.
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 September 30, 2025
NGL
Pipelines
& Services		Crude Oil
Pipelines
& Services		Natural Gas
Pipelines
& Services		Petrochemical
& Refined
Products
Services		Segment
Total
Segment revenues:
Revenues from third parties$3,463 $5,389 $927 $2,230 $12,009 
Revenues from related parties2 7 5 – 14 
Intersegment and intrasegment revenues17,583 11,504 235 4,019 33,341 
Total segment revenues21,048 16,900 1,167 6,249 45,364 
Significant segment expenses:
Cost of sales19,093 16,450 616 5,484 41,643 
Variable operating costs and expenses (1)219 36 21 118 394 
Fixed operating costs and expenses (2)456 116 194 282 1,048 
Total significant segment expenses19,768 16,602 831 5,884 43,085 
Other segment income:
Equity in income of unconsolidated affiliates21 68 2 (1)90 
Other segment items (3)2 5 1 6 14 
Total other segment income23 73 3 5 104 
Total segment gross operating margin$1,303 $371 $339 $370 $2,383 
Other financial information:
Capital expenditures$1,097 $35 $674 $152 $1,958 
(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 – Subsequent recognition of revenues attributable to make-up rights and other miscellaneous segment items.
•Crude Oil Pipelines & Services – Other miscellaneous segment items.
•Natural Gas Pipelines & Services – Other miscellaneous segment items.
•Petrochemical & Refined Products Services – Other miscellaneous segment items.
For the Nine Months Ended September 30, 2025
NGL
Pipelines
& Services		Crude Oil
Pipelines
& Services		Natural Gas
Pipelines
& Services		Petrochemical
& Refined
Products
Services		Segment
Total
Segment revenues:
Revenues from third parties$12,265 $15,281 $3,211 $8,008 $38,765 
Revenues from related parties6 19 13 – 38 
Intersegment and intrasegment revenues51,604 31,450 669 17,011 100,734 
Total segment revenues63,875 46,750 3,893 25,019 139,537 
Significant segment expenses:
Cost of sales58,013 45,417 2,159 22,799 128,388 
Variable operating costs and expenses (1)622 105 63 331 1,121 
Fixed operating costs and expenses (2)1,321 305 566 859 3,051 
Total significant segment expenses59,956 45,827 2,788 23,989 132,560 
Other segment income:
Equity in income of unconsolidated affiliates59 212 4 1 276 
Other segment items (3)40 13 4 8 65 
Total other segment income99 225 8 9 341 
Total segment gross operating margin$4,018 $1,148 $1,113 $1,039 $7,318 
Other financial information:
Capital expenditures$2,557 $83 $1,304 $375 $4,319 
(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, subsequent recognition of revenues attributable to make-up rights, and other miscellaneous segment items.
•Crude Oil Pipelines & Services – Other miscellaneous segment items.
•Natural Gas Pipelines & Services – Other miscellaneous segment items.
•Petrochemical & Refined Products Services – Other miscellaneous segment items.
For the Three Months Ended September 30, 2024
NGL
Pipelines
& Services		Crude Oil
Pipelines
& Services		Natural Gas
Pipelines
& Services		Petrochemical
& Refined
Products
Services		Segment
Total
Segment revenues:
Revenues from third parties$4,828 $5,241 $646 $3,044 $13,759 
Revenues from related parties3 10 3 – 16 
Intersegment and intrasegment revenues11,044 13,678 166 6,944 31,832 
Total segment revenues15,875 18,929 815 9,988 45,607 
Significant segment expenses:
Cost of sales13,946 18,463 279 9,281 41,969 
Variable operating costs and expenses (1)190 30 15 87 322 
Fixed operating costs and expenses (2)425 103 174 259 961 
Total significant segment expenses14,561 18,596 468 9,627 43,252 
Other segment income:
Equity in income of unconsolidated affiliates27 70 2 – 99 
Other segment items (3)(6)(2)– 2 (6)
Total other segment income
21 68 2 2 93 
Total segment gross operating margin$1,335 $401 $349 $363 $2,448 
Other financial information:
Capital expenditures$629 $52 $246 $247 $1,174 
(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, subsequent recognition of revenues attributable to make-up rights, and other miscellaneous segment items.
•Crude Oil Pipelines & Services – Other miscellaneous segment items.
•Natural Gas Pipelines & Services – Other miscellaneous segment items.
•Petrochemical & Refined Products Services – Other miscellaneous segment items.
For the Nine Months Ended September 30, 2024
NGL
Pipelines
& Services		Crude Oil
Pipelines
& Services		Natural Gas
Pipelines
& Services		Petrochemical
& Refined
Products
Services		Segment
Total
Segment revenues:
Revenues from third parties$14,227 $16,530 $2,106 $9,113 $41,976 
Revenues from related parties9 24 9 – 42 
Intersegment and intrasegment revenues34,157 42,547 481 18,982 96,167 
Total segment revenues48,393 59,101 2,596 28,095 138,185 
Significant segment expenses:
Cost of sales42,713 57,679 1,106 25,866 127,364 
Variable operating costs and expenses (1)531 102 54 266 953 
Fixed operating costs and expenses (2)1,254 310 492 756 2,812 
Total significant segment expenses44,498 58,091 1,652 26,888 131,129 
Other segment income (expense):
Equity in income of unconsolidated affiliates84 212 5 1 302 
Other segment items (3)21 7 5 (9)24 
Total other segment income (expense), net105 219 10 (8)326 
Total segment gross operating margin$4,000 $1,229 $954 $1,199 $7,382 
Other financial information:
Capital expenditures$1,835 $133 $696 $821 $3,485 
(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, subsequent recognition of revenues attributable to make-up rights, and other miscellaneous segment items.
•Crude Oil Pipelines & Services – Other miscellaneous segment items.
•Natural Gas Pipelines & Services – Other miscellaneous segment items.
•Petrochemical & Refined Products Services – Other miscellaneous segment items.
Segment revenues include intersegment and intrasegment transactions, which are generally based on transactions made at market-based rates. Our consolidated revenues reflect the elimination of intercompany transactions. 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 September 30,		For the Nine Months
Ended September 30,
2025202420252024
Segment revenues:
NGL Pipelines & Services$21,048 $15,875 $63,875 $48,393 
Crude Oil Pipelines & Services16,900 18,929 46,750 59,101 
Natural Gas Pipelines & Services1,167 815 3,893 2,596 
Petrochemical & Refined Products Services6,249 9,988 25,019 28,095 
Total segment revenues45,364 45,607 139,537 138,185 
Elimination of intersegment and intrasegment revenues(33,341)(31,832)(100,734)(96,167)
Total consolidated revenues$12,023 $13,775 $38,803 $42,018 
Segment expenses represent operating costs and expenses exclusive of (i) depreciation, amortization and accretion expenses (excluding amortization of major maintenance costs for reaction-based plants and amortization of finance lease right-of-use assets), (ii) impairment charges, and (iii) gains and losses attributable to asset sales and related matters. Segment expense presented in the tables above include intersegment and intrasegment transactions, which are generally based on transactions made at market-based rates. Additionally, the significant segment expense categories presented align with the manner in which our CODMs evaluate segment results. Our consolidated operating costs and expenses are inclusive of the aforementioned adjustments and reflect the elimination of intercompany transactions.
The following table presents our segment assets, together with a reconciliation to our consolidated total assets, at the dates indicated:
September 30,
2025		December 31,
2024
NGL Pipelines & Services$23,394 $21,900 
Crude Oil Pipelines & Services11,168 11,390 
Natural Gas Pipelines & Services13,036 12,260 
Petrochemical & Refined Products Services11,452 11,350 
Total segment assets59,050 56,900 
Construction in progress4,581 4,138 
Current assets13,237 15,133 
Other assets954 997 
Consolidated total assets$77,822 $77,168 
Supplemental Revenue and Expense Information
The following table presents additional information regarding our consolidated revenues and costs and expenses for the periods indicated:
For the Three Months
Ended September 30,		For the Nine Months
Ended September 30,
2025202420252024
Consolidated revenues:
NGL Pipelines & Services$3,465 $4,831 $12,271 $14,236 
Crude Oil Pipelines & Services5,396 5,251 15,300 16,554 
Natural Gas Pipelines & Services932 649 3,224 2,115 
Petrochemical & Refined Products Services2,230 3,044 8,008 9,113 
Total consolidated revenues$12,023 $13,775 $38,803 $42,018 
Consolidated costs and expenses
Operating costs and expenses:
Cost of sales$8,590 $10,387 $28,494 $31,976 
Other operating costs and expenses (1)1,120 1,018 3,243 2,946 
Depreciation, amortization and accretion643 601 1,886 1,791 
Asset impairment charges17 27 38 51 
Net losses (gains) attributable to asset sales and related matters(4)– (13)5 
General and administrative costs61 61 189 184 
Total consolidated costs and expenses$10,427 $12,094 $33,837 $36,953 
(1)Represents the cost of operating our plants, pipelines and other fixed assets excluding depreciation, amortization and accretion charges; asset impairment charges; and net losses (gains) attributable to asset sales and related matters.
Fluctuations in our product sales revenues and cost of sales amounts are explained in large part by changes in energy commodity prices. In general, higher energy commodity prices result in an increase in our revenues attributable to product sales; however, these higher commodity prices would also be expected to increase the associated cost of sales as purchase costs are higher. The same type of relationship would be true in the case of lower energy commodity sales prices and purchase costs.