Revenue Recognition

12 Months Ended

Dec. 31, 2023

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:

	Regulated Interstate Transportation & Storage		Gulf of Mexico Midstream & Storage		Northeast Midstream		West Midstream		Gas & NGL Marketing Services		Other		Eliminations		Total
	(Millions)
2023
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	3,334	$	—	$	—	$	—	$	—	$	—	$	(60)	$	3,274
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration	—		443		1,782		1,478		—		—		(170)		3,533
Commodity consideration	—		38		5		103		—		—		—		146
Other	19		11		87		12		1		—		(15)		115
Total service revenues	3,353		492		1,874		1,593		1		—		(245)		7,068
Product sales	140		120		132		441		4,615		442		(962)		4,928
Total revenues from contracts with customers	3,493		612		2,006		2,034		4,616		442		(1,207)		11,996
Other revenues (1)	38		15		27		101		4,294		64		(2)		4,537
Other adjustments (2)	—		—		—		—		(6,032)		—		406		(5,626)
Total revenues	$	3,531	$	627	$	2,033	$	2,135	$	2,878	$	506	$	(803)	$	10,907
2022
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	3,139	$	—	$	—	$	—	$	—	$	—	$	(72)	$	3,067
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration (3)	—		381		1,526		1,518		—		—		(167)		3,258
Commodity consideration	—		64		14		182		—		—		—		260
Other (3)	10		11		102		12		3		—		(16)		122
Total service revenues	3,149		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	3,328		707		1,776		2,553		10,771		706		(2,068)		17,773
Other revenues (1)	28		10		26		8		7,929		(55)		(11)		7,935
Other adjustments (2)	—		—		—		—		(15,467)		—		724		(14,743)
Total revenues	$	3,356	$	717	$	1,802	$	2,561	$	3,233	$	651	$	(1,355)	$	10,965

	Regulated Interstate Transportation & Storage		Gulf of Mexico Midstream & Storage		Northeast Midstream		West Midstream		Gas & NGL Marketing Services		Other		Eliminations		Total
	(Millions)
2021
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	2,988	$	—	$	—	$	—	$	—	$	—	$	(33)	$	2,955
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration (3)	—		358		1,425		1,227		—		—		(133)		2,877
Commodity consideration	—		52		7		179		—		—		—		238
Other (3)	10		8		78		9		3		1		(16)		93
Total service revenues	2,998		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	3,086		687		1,609		2,058		6,407		334		(1,397)		12,784
Other revenues (1)	13		8		25		(32)		2,632		11		(13)		2,644
Other adjustments (2)	—		—		—		—		(4,828)		—		27		(4,801)
Total revenues	$	3,099	$	695	$	1,634	$	2,026	$	4,211	$	345	$	(1,383)	$	10,627

______________________________

(1)Revenues not derived from contracts with customers primarily consist of physical product sales related to commodity derivative contracts, realized and unrealized gains and losses associated with our commodity derivative contracts, which are reported in Net gain (loss) from commodity derivatives in our 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 our Consolidated Statement of Income.

(3)Certain contractual reimbursements of operating and maintenance costs totaling $186 million and $171 million for 2022 and 2021, respectively, previously included in Other are now presented in Monetary consideration to conform to the current presentation.

Contract Assets

The following table presents a reconciliation of our contract assets:

	Year Ended December 31,
	2023		2022
	(Millions)
Balance at beginning of year	$	29	$	22
Revenue recognized in excess of amounts invoiced	183		208
Minimum volume commitments invoiced	(176)		(201)
Balance at end of year	$	36	$	29

Contract Liabilities

The following table presents a reconciliation of our contract liabilities:

	Year Ended December 31,
	2023		2022
	(Millions)
Balance at beginning of year	$	1,043	$	1,126
Payments received and deferred	190		180
Significant financing component	9		9
Contract liability acquired (disposed) – net	115		2
Recognized in revenue	(276)		(274)
Balance at end of year	$	1,081	$	1,043

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 MVC 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, 2023, 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, 2023, 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, 2023.

	Contract Liabilities		Remaining Performance Obligations
	(Millions)
2024 (one year)	$	165	$	3,828
2025 (one year)	145		3,467
2026 (one year)	139		3,289
2027 (one year)	131		2,627
2028 (one year)	112		2,365
Thereafter	389		13,548
Total	$	1,081	$	29,124