Revenue Recognition

12 Months Ended

Dec. 31, 2022

Revenue Recognition [Abstract]

Revenue Recognition [Text Block]

Note 5 – Revenue Recognition

Revenue by Category

The following table presents our revenue disaggregated by major service line:

	Transco		Northwest Pipeline		Gulf of Mexico Midstream and Storage		Northeast Midstream		West Midstream		Gas & NGL Marketing Services		Other		Eliminations		Total
	(Millions)
2022
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	2,696	$	443	$	—	$	—	$	—	$	—	$	—	$	(72)	$	3,067
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration	—		—		365		1,395		1,476		—		—		(164)		3,072
Commodity consideration	—		—		64		14		182		—		—		—		260
Other	10		—		27		233		54		3		—		(19)		308
Total service revenues	2,706		443		456		1,642		1,712		3		—		(255)		6,707
Product sales	179		—		251		134		841		10,768		706		(1,813)		11,066
Total revenues from contracts with customers	2,885		443		707		1,776		2,553		10,771		706		(2,068)		17,773
Other revenues (1)	24		4		10		26		8		7,929		(55)		(11)		7,935
Other adjustments (2)	—		—		—		—		—		(15,467)		—		724		(14,743)
Total revenues	$	2,909	$	447	$	717	$	1,802	$	2,561	$	3,233	$	651	$	(1,355)	$	10,965
2021
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	2,547	$	441	$	—	$	—	$	—	$	—	$	—	$	(33)	$	2,955
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration	—		—		344		1,308		1,184		—		—		(130)		2,706
Commodity consideration	—		—		52		7		179		—		—		—		238
Other	10		—		22		195		52		3		1		(19)		264
Total service revenues	2,557		441		418		1,510		1,415		3		1		(182)		6,163
Product sales	88		—		269		99		643		6,404		333		(1,215)		6,621
Total revenues from contracts with customers	2,645		441		687		1,609		2,058		6,407		334		(1,397)		12,784
Other revenues (1)	10		3		8		25		(32)		2,632		11		(13)		2,644
Other adjustments (2)	—		—		—		—		—		(4,828)		—		27		(4,801)
Total revenues	$	2,655	$	444	$	695	$	1,634	$	2,026	$	4,211	$	345	$	(1,383)	$	10,627

	Transco		Northwest Pipeline		Gulf of Mexico Midstream and Storage		Northeast Midstream		West Midstream		Gas & NGL Marketing Services		Other		Eliminations		Total
	(Millions)
2020
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	2,404	$	449	$	—	$	—	$	—	$	—	$	—	$	(7)	$	2,846
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration	—		—		348		1,279		1,226		—		—		(97)		2,756
Commodity consideration	—		—		21		7		101		—		—		—		129
Other	10		—		27		164		35		32		1		(16)		253
Total service revenues	2,414		449		396		1,450		1,362		32		1		(120)		5,984
Product sales	80		—		114		57		152		1,602		—		(336)		1,669
Total revenues from contracts with customers	2,494		449		510		1,507		1,514		1,634		1		(456)		7,653
Other revenues (1)	10		—		9		22		9		(3)		33		(14)		66
Total revenues	$	2,504	$	449	$	519	$	1,529	$	1,523	$	1,631	$	34	$	(470)	$	7,719

______________________________

(1)Revenues not derived from contracts with customers primarily consist of physical product sales related to derivative contracts, realized and unrealized gains and losses associated with our derivative contracts, which are reported in Net gain (loss) on commodity derivatives in the Consolidated Statement of Income, management fees that we receive for certain services we provide to operated equity-method investments, and leasing revenues associated with our headquarters building.

(2)Other adjustments reflect certain costs of Gas & NGL Marketing Services’ risk management activities. As we are acting as agent for natural gas marketing customers or engage in energy trading activities, the resulting revenues are presented net of the related costs of those activities in the Consolidated Statement of Income (see Note 1 – General, Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies).

Contract Assets

The following table presents a reconciliation of our contract assets:

	Year Ended December 31,
	2022		2021
	(Millions)
Balance at beginning of year	$	22	$	12
Revenue recognized in excess of amounts invoiced	208		184
Minimum volume commitments invoiced	(201)		(174)
Balance at end of year	$	29	$	22

Contract Liabilities

The following table presents a reconciliation of our contract liabilities:

	Year Ended December 31,
	2022		2021
	(Millions)
Balance at beginning of year	$	1,126	$	1,209
Payments received and deferred	180		116
Significant financing component	9		10
Contract liability acquired	2		1
Recognized in revenue	(274)		(210)
Balance at end of year	$	1,043	$	1,126

Remaining Performance Obligations

Remaining performance obligations primarily include reservation charges on contracted capacity for our gas pipeline firm transportation contracts with customers, storage capacity contracts, long-term contracts containing minimum volume commitments associated with our midstream businesses, and fixed payments associated with offshore production handling. For our interstate natural gas pipeline businesses, remaining performance obligations reflect the rates for such services in our current FERC tariffs for the life of the related contracts; however, these rates may change based on future tariffs approved by the FERC and the amount and timing of these changes are not currently known.

Our remaining performance obligations exclude variable consideration, including contracts with variable consideration for which we have elected the practical expedient for consideration recognized in revenue as billed. Certain of our contracts contain evergreen and other renewal provisions for periods beyond the initial term of the contract. The remaining performance obligation amounts as of December 31, 2022, do not consider potential future performance obligations for which the renewal has not been exercised and exclude contracts with customers for which the underlying facilities have not received FERC authorization to be placed into service. Consideration received prior to December 31, 2022, that will be recognized in future periods is also excluded from our remaining performance obligations and is instead reflected in contract liabilities.

The following table presents the amount of the contract liabilities balance expected to be recognized as revenue when performance obligations are satisfied and the transaction price allocated to the remaining performance obligations under certain contracts as of December 31, 2022.

	Contract Liabilities		Remaining Performance Obligations
	(Millions)
2023 (one year)	$	142	$	3,643
2024 (one year)	122		3,388
2025 (one year)	117		3,149
2026 (one year)	112		2,520
2027 (one year)	101		2,415
Thereafter	449		14,675
Total	$	1,043	$	29,790