Commitments and Contingent Liabilities

6 Months Ended

Jun. 30, 2026

Commitments and Contingencies Disclosure [Abstract]

Note 16. 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 June 30, 2026 and December 31, 2025, 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 $33.5 billion and $34.7 billion at June 30, 2026 and December 31, 2025, respectively. See Note 7 for additional information regarding our scheduled future maturities of debt principal.

Lease Accounting Matters

In June 2026, we modified certain compressor lease agreements and extended the lease terms. The agreements include annual termination options for a defined portion of the leased compressors and multi-year renewal options. These options were excluded from the measurement of the related lease liabilities and right-of-use (“ROU”) assets because their exercise was not reasonably certain. The agreements contain a lease component related to the use of compression equipment and non-lease components for maintenance and other services. For compressor leases, we separate the lease and non-lease components, and the contract consideration attributable to the non-lease service components was estimated using observable market information for comparable services. At the modification date, we recognized incremental operating lease liabilities of approximately $345 million and finance lease liabilities of approximately $177 million, together with corresponding ROU assets. Prior to the modifications, these arrangements were primarily accounted for as short-term leases due to their contractual terms of 12 months or less.

The following table presents information regarding operating and finance leases where we are the lessee at June 30, 2026:


	Balance Sheet Location
Operating leases:
ROU assets, net	Operating lease right-of-use assets, net	$	758
Lease liabilities, current	Current operating lease liabilities	90
Lease liabilities, noncurrent	Long-term operating lease liabilities	701
Weighted-average remaining term		9 years
Weighted-average discount rate (1)		4.6		%
Finance leases:
ROU assets, net	Other assets	$	191
Lease liabilities, current	Other current liabilities	20
Lease liabilities, noncurrent	Other long-term liabilities	171
Weighted-average remaining term		8 years
Weighted-average discount rate (1)		5.0		%

(1)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 June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Long-term leases:
Fixed operating lease expense:
Non-cash lease expense (amortization of ROU assets)	$	24	$	27	$	52	$	55
Related accretion expense on lease liability balances	6		5		11		9
Total fixed operating lease expense	30		32		63		64
Fixed finance lease expense:
Amortization of ROU assets	2		1		3		1
Interest on finance lease liabilities	1		1		1		1
Total fixed finance lease expense	3		2		4		2
Variable lease expense	4		4		9		9
Total long-term lease expense	37		38		76		75
Short-term lease expense	35		38		77		73
Total lease expense	$	72	$	76	$	153	$	148

The following table presents supplemental cash flow and non-cash activity related to our operating and finance leases for the periods indicated:


	For the Six Months Ended June 30,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	64	$	66

Financing cash outflows from finance leases	4		1
Non-cash change in lease liabilities from recognition of ROU assets:
Operating leases	$	373	$	15
Finance leases	178		15

The following table presents the maturities of our operating and finance lease liabilities at June 30, 2026:


	Operating		Finance
Period:
Six months ended December 31, 2026	$	62	$	14
One year ended December 31, 2027	116		29
One year ended December 31, 2028	106		30
One year ended December 31, 2029	100		30
One year ended December 31, 2030	98		28
Thereafter	492		100
Total undiscounted lease payments	$	974	$	231
Less implied interest	183		40
Total lease liabilities	$	791	$	191

We do not have any significant operating leases where we are the lessor. Operating lease income was $5 million and $3 million for the three months ended June 30, 2026 and 2025, respectively. Operating lease income was $10 million and $7 million for the six months ended June 30, 2026 and 2025, respectively.

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 June 30, 2026 did not differ materially from those reported in our 2025 Form 10-K.