Segment Disclosures

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Disclosures [Text Block]

Note 20 – Segment Disclosures

Our reportable segments are Transmission & Gulf of Mexico, Northeast G&P, West, and Sequent. All remaining business activities are included in Other. (See Note 1 – General, Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies.)

Performance Measurement

We evaluate segment operating performance based upon Modified EBITDA. This measure represents the basis of our internal financial reporting and is the primary performance measure used by our chief operating decision maker in measuring performance and allocating resources among our reportable segments. Intersegment Service revenues primarily represent transportation services provided to our marketing business and gathering services provided to our oil and gas properties. Intersegment Product sales primarily represent the sale of NGLs from our natural gas processing plants and our oil and gas properties to our marketing business.

We define Modified EBITDA as follows:

•Net income (loss) before:

◦Income (loss) from discontinued operations;

◦Provision (benefit) for income taxes;

◦Interest incurred, net of interest capitalized;

◦Equity earnings (losses);

◦Impairment of equity-method investments;

◦Other investing income (loss) – net;

◦Impairment of goodwill;

◦Depreciation and amortization expenses;

◦Accretion expense associated with asset retirement obligations for nonregulated operations.

•This measure is further adjusted to include our proportionate share (based on ownership interest) of Modified EBITDA from our equity-method investments calculated consistently with the definition described above.

The following table reflects the reconciliation of Modified EBITDA to Net income (loss) as reported in the Consolidated Statement of Income:

	Year Ended December 31,
	2021		2020		2019
	(Millions)
Modified EBITDA by segment:
Transmission & Gulf of Mexico	$	2,621	$	2,379	$	2,175
Northeast G&P	1,712		1,489		1,314
West	1,095		998		952
Sequent	(112)		—		—
Other	178		(15)		6
	5,494		4,851		4,447
Accretion expense associated with asset retirement obligations for nonregulated operations	(45)		(35)		(33)
Depreciation and amortization expenses	(1,842)		(1,721)		(1,714)
Impairment of goodwill	—		(187)		—
Equity earnings (losses)	608		328		375
Impairment of equity-method investments	—		(1,046)		(186)
Other investing income (loss) – net	7		8		107
Proportional Modified EBITDA of equity-method investments	(970)		(749)		(746)
Interest expense	(1,179)		(1,172)		(1,186)
(Provision) benefit for income taxes	(511)		(79)		(335)
Income (loss) from discontinued operations	—		—		(15)
Net income (loss)	$	1,562	$	198	$	714

The following table reflects the reconciliation of Segment revenues to Total revenues as reported in the Consolidated Statement of Income and Other financial information:

	Transmission &  Gulf of Mexico		Northeast G&P		West		Sequent (1)		Other		Eliminations		Total
	(Millions)
2021
Segment revenues:
Service revenues
External	$	3,310	$	1,490	$	1,181	$	—	$	20	$	—	$	6,001
Internal	75		38		40		—		12		(165)		—
Total service revenues	3,385		1,528		1,221		—		32		(165)		6,001
Total service revenues – commodity consideration	52		7		179		—		—		—		238
Product sales
External	231		13		4,117		37		138		—		4,536
Internal	118		86		213		(80)		195		(532)		—
Total product sales	349		99		4,330		(43)		333		(532)		4,536
Net gain (loss) on commodity derivatives (2)	—		—		(85)		(43)		(20)		—		(148)
Total revenues	$	3,786	$	1,634	$	5,645	$	(86)	$	345	$	(697)	$	10,627
Other financial information:
Additions to long-lived assets	$	861	$	164	$	209	$	1	$	620	$	—	$	1,855
Proportional Modified EBITDA of equity-method investments	183		682		105		—		—		—		970
2020
Segment revenues:
Service revenues
External	$	3,207	$	1,416	$	1,280	$	—	$	21	$	—	$	5,924
Internal	50		49		—		—		13		(112)		—
Total service revenues	3,257		1,465		1,280		—		34		(112)		5,924
Total service revenues – commodity consideration	21		7		101		—		—		—		129
Product sales
External	144		16		1,511		—		—		—		1,671
Internal	47		41		56		—		—		(144)		—
Total product sales	191		57		1,567		—		—		(144)		1,671
Net gain (loss) on commodity derivatives (2)	—		—		(5)		—		—		—		(5)
Total revenues	$	3,469	$	1,529	$	2,943	$	—	$	34	$	(256)	$	7,719
Other financial information:
Additions to long-lived assets	$	706	$	137	$	318	$	—	$	122	$	—	$	1,283
Proportional Modified EBITDA of equity-method investments	166		473		110		—		—		—		749

	Transmission &  Gulf of Mexico		Northeast G&P		West		Sequent (1)		Other		Eliminations		Total
	(Millions)
2019
Segment revenues:
Service revenues
External	$	3,261	$	1,291	$	1,364	$	—	$	17	$	—	$	5,933
Internal	50		47		—		—		13		(110)		—
Total service revenues	3,311		1,338		1,364		—		30		(110)		5,933
Total service revenues – commodity consideration	41		12		150		—		—		—		203
Product sales
External	217		115		1,731		—		—		—		2,063
Internal	71		35		64		—		—		(170)		—
Total product sales	288		150		1,795		—		—		(170)		2,063
Net gain (loss) on commodity derivatives (2)	—		—		2		—		—		—		2
Total revenues	$	3,640	$	1,500	$	3,311	$	—	$	30	$	(280)	$	8,201
Other financial information:
Additions to long-lived assets	$	1,341	$	1,245	$	304	$	—	$	21	$	—	$	2,911
Proportional Modified EBITDA of equity-method investments	177		454		115		—		—		—		746

______________

(1)    Sequent nets revenues from marketing and trading activities with the associated costs.

(2)    We record transactions that qualify as derivatives at fair value with changes in fair value recognized in earnings in the period of change and characterized as unrealized gains or losses. Gains and losses on derivatives held for energy trading purposes are presented on a net basis in revenue.

The following table reflects Total assets and Equity-method investments by reportable segments:

	Total Assets				Equity-Method Investments
	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
	(Millions)
Transmission & Gulf of Mexico	$	20,392	$	19,110	$	602	$	610
Northeast G&P	14,938		14,569		3,681		3,682
West	10,851		10,558		838		867
Sequent	1,592		—		—		—
Other (1)	3,233		927		—		—
Eliminations (2)	(3,394)		(999)		—		—
Total	$	47,612	$	44,165	$	5,121	$	5,159

______________

(1)    Increase in Other is due primarily to an increased cash balance and the acquisitions of oil and gas properties in 2021.

(2)    Eliminations primarily relate to the intercompany notes and accounts receivable generated by our cash management program.