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Business Segments and Related Information
 6 Months Ended
Jun. 30, 2026
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 June 30,		For the Six Months
Ended June 30,
2026202520262025
Total segment gross operating margin$3,004 $2,471 $5,646 $4,935 
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)(671)(610)(1,327)(1,212)
Asset impairment charges in operating costs and expenses(9)(11)(17)(21)
Net gains attributable to asset sales and related matters in operating costs and expenses2 7 1 9 
General and administrative costs(64)(68)(128)(128)
Non-refundable payments received from shippers attributable to make-up rights (2)(10)(6)(43)(43)
Subsequent recognition of revenues attributable to make-up rights (3)(3)12 12 16 
Total other expense, net (4)(381)(325)(758)(656)
Income before income taxes$1,868 $1,470 $3,386 $2,900 
(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 Unaudited Condensed 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 June 30, 2026
NGL
Pipelines
& Services		Crude Oil
Pipelines
& Services		Natural Gas
Pipelines
& Services		Petrochemical
& Refined
Products
Services		Segment
Total
Segment revenues:
Revenues from third parties$5,232 $8,332 $654 $4,037 $18,255 
Revenues from related parties2 7 5 – 14 
Intersegment and intrasegment revenues18,687 16,921 233 9,446 45,287 
Total segment revenues23,921 25,260 892 13,483 63,556 
Significant segment expenses:
Cost of sales21,709 24,717 107 12,620 59,153 
Variable operating costs and expenses (1)197 42 23 140 402 
Fixed operating costs and expenses (2)504 115 210 309 1,138 
Total significant segment expenses22,410 24,874 340 13,069 60,693 
Other segment income (expense):
Equity in income of unconsolidated affiliates21 86 1 1 109 
Other segment items (3)13 13 3 3 32 
Total other segment income34 99 4 4 141 
Total segment gross operating margin$1,545 $485 $556 $418 $3,004 
Other financial information:
Capital expenditures$539 $22 $479 $118 $1,158 
(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 miscellaneous segment items.
•Natural Gas Pipelines & Services – Other miscellaneous segment items.
•Petrochemical & Refined Products Services – Other miscellaneous segment items.
For the Six Months Ended June 30, 2026
NGL
Pipelines
& Services		Crude Oil
Pipelines
& Services		Natural Gas
Pipelines
& Services		Petrochemical
& Refined
Products
Services		Segment
Total
Segment revenues:
Revenues from third parties$9,260 $14,626 $1,754 $6,985 $32,625 
Revenues from related parties6 12 12 – 30 
Intersegment and intrasegment revenues35,235 28,648 585 14,364 78,832 
Total segment revenues44,501 43,286 2,351 21,349 111,487 
Significant segment expenses:
Cost of sales40,134 42,323 861 19,753 103,071 
Variable operating costs and expenses (1)418 79 41 272 810 
Fixed operating costs and expenses (2)981 236 402 601 2,220 
Total significant segment expenses41,533 42,638 1,304 20,626 106,101 
Other segment income:
Equity in income of unconsolidated affiliates40 140 3 2 185 
Other segment items (3)40 26 2 7 75 
Total other segment income80 166 5 9 260 
Total segment gross operating margin$3,048 $814 $1,052 $732 $5,646 
Other financial information:
Capital expenditures$1,031 $49 $819 $242 $2,141 
(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 June 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$3,404 $4,777 $1,068 $2,103 $11,352 
Revenues from related parties2 6 3 – 11 
Intersegment and intrasegment revenues17,004 9,324 202 5,797 32,327 
Total segment revenues20,410 14,107 1,273 7,900 43,690 
Significant segment expenses:
Cost of sales18,487 13,660 644 7,159 39,950 
Variable operating costs and expenses (1)204 34 20 107 365 
Fixed operating costs and expenses (2)442 88 195 283 1,008 
Total significant segment expenses19,133 13,782 859 7,549 41,323 
Other segment income:
Equity in income of unconsolidated affiliates18 72 – 2 92 
Other segment items (3)2 6 3 1 12 
Total other segment income
20 78 3 3 104 
Total segment gross operating margin$1,297 $403 $417 $354 $2,471 
Other financial information:
Capital expenditures$825 $25 $327 $122 $1,299 
(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 Six Months Ended June 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$8,802 $9,892 $2,284 $5,778 $26,756 
Revenues from related parties4 12 8 – 24 
Intersegment and intrasegment revenues34,021 19,946 434 12,992 67,393 
Total segment revenues42,827 29,850 2,726 18,770 94,173 
Significant segment expenses:
Cost of sales38,920 28,967 1,543 17,315 86,745 
Variable operating costs and expenses (1)403 69 42 213 727 
Fixed operating costs and expenses (2)865 189 372 577 2,003 
Total significant segment expenses40,188 29,225 1,957 18,105 89,475 
Other segment income (expense):
Equity in income of unconsolidated affiliates38 144 2 2 186 
Other segment items (3)38 8 3 2 51 
Total other segment income76 152 5 4 237 
Total segment gross operating margin$2,715 $777 $774 $669 $4,935 
Other financial information:
Capital expenditures$1,460 $48 $630 $223 $2,361 
(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 June 30,		For the Six Months
Ended June 30,
2026202520262025
Segment revenues:
NGL Pipelines & Services$23,921 $20,410 $44,501 $42,827 
Crude Oil Pipelines & Services25,260 14,107 43,286 29,850 
Natural Gas Pipelines & Services892 1,273 2,351 2,726 
Petrochemical & Refined Products Services13,483 7,900 21,349 18,770 
Total segment revenues63,556 43,690 111,487 94,173 
Elimination of intersegment and intrasegment revenues(45,287)(32,327)(78,832)(67,393)
Total consolidated revenues$18,269 $11,363 $32,655 $26,780 
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:
June 30,
2026		December 31,
2025
NGL Pipelines & Services$25,728 $24,999 
Crude Oil Pipelines & Services11,131 11,097 
Natural Gas Pipelines & Services13,440 13,194 
Petrochemical & Refined Products Services11,699 11,725 
Total segment assets61,998 61,015 
Construction in progress2,153 2,400 
Current assets15,905 13,360 
Operating lease right-of-use assets, net
758 437 
Other assets944 690 
Consolidated total assets$81,758 $77,902 
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 June 30,		For the Six Months
Ended June 30,
2026202520262025
Consolidated revenues:
NGL Pipelines & Services$5,234 $3,406 $9,266 $8,806 
Crude Oil Pipelines & Services8,339 4,783 14,638 9,904 
Natural Gas Pipelines & Services659 1,071 1,766 2,292 
Petrochemical & Refined Products Services4,037 2,103 6,985 5,778 
Total consolidated revenues$18,269 $11,363 $32,655 $26,780 
Consolidated costs and expenses
Operating costs and expenses:
Cost of sales$14,160 $7,899 $24,838 $19,904 
Other operating costs and expenses (1)1,193 1,063 2,327 2,122 
Depreciation, amortization and accretion705 626 1,387 1,244 
Asset impairment charges9 11 17 21 
Net gains attributable to asset sales and related matters(2)(7)(1)(9)
General and administrative costs64 68 128 128 
Total consolidated costs and expenses$16,129 $9,660 $28,696 $23,410 
(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.