Fair Value Measurements, Guarantees, and Concentration of Credit Risk (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Assets and Liabilities Measured On Recurring Basis [Table Text Block]

The following table presents, by level within the fair value hierarchy, certain of our financial assets and liabilities. The carrying values of cash and cash equivalents, accounts receivable, margin deposits, and accounts payable approximate fair value because of the short-term nature of these instruments. Therefore, these assets and liabilities are not presented in the following table.



							Fair Value Measurements Using
	Carrying Amount			Fair Value			Quoted Prices In Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Millions)
Assets (liabilities) at December 31, 2018:
Measured on a recurring basis:
ARO Trust investments	$	150		$	150		$	150		$	—		$	—
Energy derivatives assets not designated as hedging instruments	3			3			3			—			—
Energy derivatives liabilities not designated as hedging instruments	(7		)	(7		)	(4		)	—			(3		)
Additional disclosures:
Long-term debt, including current portion	(22,414		)	(23,330		)	—			(23,330		)	—
Guarantees	(43		)	(30		)	—			(14		)	(16		)

Assets (liabilities) at December 31, 2017:
Measured on a recurring basis:
ARO Trust investments	$	135		$	135		$	135		$	—		$	—
Energy derivatives liabilities designated as hedging instruments	(3		)	(3		)	(2		)	(1		)	—
Energy derivatives liabilities not designated as hedging instruments	(3		)	(3		)	—			—			(3		)
Additional disclosures:
Long-term debt, including current portion	(20,935		)	(23,005		)	—			(23,005		)	—
Guarantees	(43		)	(30		)	—			(14		)	(16		)

Fair Value Measurements, Nonrecurring [Table Text Block]

The following table presents impairments of assets and investments associated with certain nonrecurring fair value measurements within Level 3 of the fair value hierarchy, except as specifically noted.



						Impairments
						Years Ended December 31,
	Classification	Segment	Date of Measurement	Fair Value		2018		2017		2016
				(Millions)
Certain gathering operations (1)	Property, plant, and equipment – net and Intangible assets - net of accumulated amortization	West	December 31, 2018	$	470	$	1,849
Certain idle pipeline assets (2)	Property, plant, and equipment – net	Other	June 30, 2018	25		66
Certain gathering operations (3)	Property, plant, and equipment – net and Intangible assets - net of accumulated amortization	West	September 30, 2017	439				$	1,019
Certain gathering operations (4)	Property, plant, and equipment – net and Intangible assets - net of accumulated amortization	Northeast G&P	September 30, 2017	21				115
Certain NGL pipeline (5)	Property, plant, and equipment – net	Other	September 30, 2017	32				68
Certain olefins pipeline project (6)	Property, plant, and equipment – net	Other	June 30, 2017	18				23
Canadian operations (7)	Assets held for sale	Other	June 30, 2016	1,130						$	747
Certain gathering operations (8)	Property, plant, and equipment – net	West	June 30, 2016	18						48
Certain idle pipeline assets	Property, plant, and equipment – net	Other	December 31, 2016	73						8
Fair value measurements of certain assets						1,915		1,225		803
Other impairments and write-downs (9)						—		23		70
Impairment of certain assets						$	1,915	$	1,248	$	873

Equity-method investments (10)	Investments	Northeast G&P	December 31, 2018	$	1,293	$	32
Equity-method investments (11)	Investments	West and Northeast G&P	December 31, 2016	1,295						$	318



					Impairments
					Years Ended December 31,
	Classification	Segment	Date of Measurement	Fair Value	2018		2017	2016
				(Millions)
Equity-method investments (12)	Investments	West and Northeast G&P	March 31, 2016	1,294				109
Other equity-method investment	Investments	West	March 31, 2016	—				3
Impairment of equity-method investments					$	32		$	430

______________

(1)

Relates to our gathering operations in the Barnett Shale. Certain of our contractual gathering rates, primarily those in the Barnett Shale, are based on a percentage of the New York Mercantile Exchange (NYMEX) natural gas prices. During the fourth quarter of 2018, we determined there was a sustained decline in the forward price curves for natural gas. During this same period, a large producer customer in the Barnett Shale removed their remaining drilling rig. These factors gave rise to an impairment evaluation of these assets, which incorporated management’s projections of future drilling activity and gathering rates, taking into consideration the information previously noted as well as recently available information regarding producer drilling cost assumptions in the basin. The resulting estimate of future undiscounted cash flows was less than our carrying value, necessitating the estimation of the fair value of these assets. To arrive at the fair value, we utilized an income approach with a discount rate of 8.5 percent, reflecting an estimated cost of capital and risks associated with the underlying assets.

(2)

Relates to certain idle pipelines. The estimated fair value was determined by a market approach incorporating information derived from bids received for these assets, which we marketed for sale together with certain other assets. These inputs resulted in a fair value measurement within Level 2 of the fair value hierarchy. We sold these assets in the fourth quarter of 2018. (See Note 3 – Divestitures.)

(3)

Relates to certain gathering operations in the Mid-Continent region. During the third quarter of 2017, we received solicitations and engaged in negotiations for the sale of certain of these assets which led to our impairment evaluation. The estimated fair value was determined using an income approach and incorporated market inputs based on ongoing negotiations for a potential sale of a portion of the underlying assets. For the income approach, we utilized a discount rate of 10.2 percent, reflecting an estimated cost of capital and risks associated with the underlying assets.


(4)	Relates to certain gathering operations in the Marcellus South region resulting from an anticipated decline in future volumes following a third-quarter 2017 shut-in by the primary producer. The estimated fair value was determined by the income approach utilizing a discount rate of 11.1 percent, reflecting an estimated cost of capital and risks associated with the underlying assets.


(5)	Relates to an NGL pipeline near the Houston Ship Channel region which we anticipated would be underutilized for the foreseeable future. The estimated fair value was primarily determined by using a market approach based on our analysis of observable inputs in the principal market. We sold these assets in the fourth quarter of 2018. (See Note 3 – Divestitures.)

(6)

Relates primarily to project development costs associated with an olefins pipeline project in the Gulf Coast region, the likelihood of completion we considered remote. The estimated fair value of the remaining pipe and equipment considered a market approach based on our analysis of observable inputs in the principal market, as well as an estimate of replacement cost. We sold these assets in the fourth quarter of 2018. (See Note 3 – Divestitures.)

(7)

Relates to our Canadian operations. We designated these operations as held for sale as of June 30, 2016. As a result, we measured the fair value of the disposal group, resulting in an impairment charge. The estimated fair value was determined by a market approach based primarily on inputs received in the marketing process and reflected our estimate of the potential assumed proceeds. We disposed of our Canadian operations through a sale during the third quarter of 2016. (See Note 3 – Divestitures.)


(8)	Relates to certain gathering assets within the Mid-Continent region. The estimated fair value was determined by a market approach based on our analysis of observable inputs in the principal market.


(9)	Reflects multiple individually insignificant impairments and write-downs of other certain assets that may no longer be in use or are surplus in nature for which the fair value was determined to be lower than the carrying value.


(10)	Relates to Northeast G&P’s equity-method investment in UEOM. The estimated fair value was determined by a market approach based on our analysis of inputs in the principal market.

(11)

Relates to West’s previously held interest in Ranch Westex and multiple, currently held Appalachia Midstream Investments at Northeast G&P. The historical carrying value of these equity-method investments was initially recorded based on estimated fair value during the third quarter of 2014 in conjunction with the acquisition of ACMP. We estimated the fair value of these Appalachia Midstream Investments using an income approach based on expected future cash flows and appropriate discount rates. The determination of estimated future cash flows involved significant assumptions regarding gathering volumes, rates, and related capital spending. The discount rate utilized for the Appalachia Midstream Investments evaluation was 10.2 percent and reflected an estimated cost of capital as impacted by market conditions and risks associated with the underlying businesses. In addition to utilizing an income approach, we also considered a market approach for certain Appalachia Midstream Investments and Ranch Westex based on an agreement reached in February 2017 to exchange our interests in DBJV and Ranch Westex for additional interests in certain Appalachia Midstream Investments and cash. (See Note 6 – Investing Activities.)

(12)

Relates to West’s previously held interest in DBJV and Northeast G&P’s currently held equity-method investment in Laurel Mountain. Our carrying values in these equity-method investments had been written down to fair value at December 31, 2015. Our first-quarter 2016 analysis reflected higher discount rates for both of these equity-method investments, along with lower natural gas prices for Laurel Mountain. We estimated the fair value of these equity-method investments using an income approach based on expected future cash flows and appropriate discount rates. The determination of estimated future cash flows involved significant assumptions regarding gathering volumes and related capital spending. Discount rates utilized ranged from 13.0 percent to 13.3 percent and reflected increases in the estimated cost of capital, revised estimates of expected future cash flows, and risks associated with the underlying businesses.

Concentration of receivables, net of allowances, by product or service [Table Text Block]

The following table summarizes concentration of receivables, net of allowances:



	December 31,
	2018		2017
	(Millions)
NGLs, natural gas, and related products and services	$	626	$	760
Transportation of natural gas and related products	232		212
Other	134		4
Total	$	992	$	976