Segment Disclosures

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Disclosures [Text Block]

Note 13 – Segment Disclosures

Our reportable segments are Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services. All remaining business activities are included in Other. (See Note 1 – General, Description of Business, and Basis of Presentation.)

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:

◦Provision (benefit) for income taxes;

◦Interest incurred, net of interest capitalized;

◦Equity earnings (losses);

◦Other investing income (loss) – net;

◦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 our Consolidated Statement of Income.

	Three Months Ended  March 31,
	2022		2021
	(Millions)
Modified EBITDA by segment:
Transmission & Gulf of Mexico	$	697	$	660
Northeast G&P	418		402
West	260		222
Gas & NGL Marketing Services	13		93
Other	5		33
	1,393		1,410
Accretion expense associated with asset retirement obligations for nonregulated operations	(11)		(10)
Depreciation and amortization expenses	(498)		(438)
Equity earnings (losses)	136		131
Other investing income (loss) – net	1		2
Proportional Modified EBITDA of equity-method investments	(225)		(225)
Interest expense	(286)		(294)
(Provision) benefit for income taxes	(118)		(141)
Net income (loss)	$	392	$	435

The following table reflects the reconciliation of Segment revenues to Total revenues as reported in our Consolidated Statement of Income and Total assets by reportable segment.

	Transmission & Gulf of Mexico		Northeast G&P		West		Gas & NGL Marketing Services (1)		Other		Eliminations		Total
	(Millions)
Three Months Ended March 31, 2022
Segment revenues:
Service revenues
External	$	845	$	370	$	316	$	1	$	5	$	—	$	1,537
Internal	29		10		15		—		4		(58)		—
Total service revenues	874		380		331		1		9		(58)		1,537
Total service revenues – commodity consideration	21		7		49		—		—		—		77
Product sales
External	51		5		11		1,015		22		—		1,104
Internal	49		31		176		(47)		82		(291)		—
Total product sales	100		36		187		968		104		(291)		1,104
Net gain (loss) on commodity derivatives (2)	—		—		(5)		(115)		(74)		—		(194)
Total revenues	$	995	$	423	$	562	$	854	$	39	$	(349)	$	2,524
Three Months Ended March 31, 2021
Segment revenues:
Service revenues
External	$	822	$	347	$	278	$	1	$	4	$	—	$	1,452
Internal	12		11		13		—		3		(39)		—
Total service revenues	834		358		291		1		7		(39)		1,452
Total service revenues – commodity consideration	11		3		35		—		—		—		49
Product sales
External	40		4		15		1,039		49		—		1,147
Internal	27		28		137		49		7		(248)		—
Total product sales	67		32		152		1,088		56		(248)		1,147
Net gain (loss) on commodity derivatives (2)	—		—		(2)		(34)		—		—		(36)
Total revenues	$	912	$	393	$	476	$	1,055	$	63	$	(287)	$	2,612
March 31, 2022
Total assets	$	20,698	$	15,145	$	10,479	$	2,258	$	2,009	$	(4,540)	$	46,049
December 31, 2021
Total assets	$	20,394	$	14,939	$	10,330	$	2,127	$	2,991	$	(3,169)	$	47,612

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(1)    See Note 1 – General, Description of Business, and Basis of Presentation.

(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.