Segment Disclosures

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Disclosures [Text Block]

Note 18 – 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, 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 natural gas and 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 expense;

◦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.

Significant noncash items which are components of Modified EBITDA may include unrealized net gain (loss) from commodity derivatives within Total revenues, unrealized net gain (loss) from commodity derivatives within Net processing commodity expenses for our Gas & NGL Marketing segment, charges associated with lower of cost or net realizable value adjustments to our Gas & NGL Marketing segment inventory within Product sales and Product costs in our Consolidated Statement of Income, and impairments of certain assets within Other (income) expense – net within Operating income (loss).

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

	Year Ended December 31,
	2023		2022		2021
	(Millions)
Modified EBITDA by segment:
Transmission & Gulf of Mexico	$	3,068	$	2,674	$	2,621
Northeast G&P	1,916		1,796		1,712
West	1,238		1,211		961
Gas & NGL Marketing Services	950		(40)		22
Total reportable segments	7,172		5,641		5,316
Modified EBITDA of other business activities	841		434		178
	8,013		6,075		5,494
Accretion expense associated with asset retirement obligations for nonregulated operations	(59)		(51)		(45)
Depreciation and amortization expenses	(2,071)		(2,009)		(1,842)
Equity earnings (losses)	589		637		608
Other investing income (loss) – net	108		16		7
Proportional Modified EBITDA of equity-method investments	(939)		(979)		(970)
Interest expense	(1,236)		(1,147)		(1,179)
(Provision) benefit for income taxes	(1,005)		(425)		(511)
Income (loss) from discontinued operations	(97)		—		—
Net income (loss)	$	3,303	$	2,117	$	1,562

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

	Transmission & Gulf of Mexico		Northeast G&P		West		Gas & NGL Marketing Services (1)		Other		Eliminations		Total
	(Millions)
2023
Segment revenues:
Service revenues
External	$	3,766	$	1,868	$	1,376	$	1	$	15	$	—	$	7,026
Internal	92		28		126		—		1		(247)		—
Total service revenues	3,858		1,896		1,502		1		16		(247)		7,026
Total service revenues – commodity consideration	38		5		103		—		—		—		146
Product sales
External	146		34		80		2,382		137		—		2,779
Internal	106		98		361		(322)		305		(548)		—
Total product sales	252		132		441		2,060		442		(548)		2,779
Net gain (loss) from commodity derivatives
Realized	2		—		89		115		47		—		253
Unrealized	—		—		—		702		1		—		703
Total net gain (loss) from commodity derivatives (2)	2		—		89		817		48		—		956
Total revenues	$	4,150	$	2,033	$	2,135	$	2,878	$	506	$	(795)	$	10,907
Other financial information:
Additions to long-lived assets	$	2,501	$	340	$	1,186	$	7	$	279	$	—	$	4,313
Proportional Modified EBITDA of equity-method investments	205		574		162		—		(2)		—		939
2022
Segment revenues:
Service revenues
External	$	3,461	$	1,613	$	1,443	$	3	$	16	$	—	$	6,536
Internal	118		41		99		—		8		(266)		—
Total service revenues	3,579		1,654		1,542		3		24		(266)		6,536
Total service revenues – commodity consideration	64		14		182		—		—		—		260
Product sales
External	228		28		145		4,052		103		—		4,556
Internal	176		106		696		(518)		603		(1,063)		—
Total product sales	404		134		841		3,534		706		(1,063)		4,556
Net gain (loss) from commodity derivatives
Realized	—		—		(4)		17		(104)		—		(91)
Unrealized	—		—		—		(321)		25		—		(296)
Total net gain (loss) from commodity derivatives (2)	—		—		(4)		(304)		(79)		—		(387)
Total revenues	$	4,047	$	1,802	$	2,561	$	3,233	$	651	$	(1,329)	$	10,965
Other financial information:
Additions to long-lived assets	$	1,420	$	261	$	1,507	$	4	$	406	$	—	$	3,598
Proportional Modified EBITDA of equity-method investments	193		654		132		—		—		—		979

	Transmission & Gulf of Mexico		Northeast G&P		West		Gas & NGL Marketing Services (1)		Other		Eliminations		Total
	(Millions)
2021
Segment revenues:
Service revenues
External	$	3,310	$	1,490	$	1,178	$	3	$	20	$	—	$	6,001
Internal	75		38		70		—		12		(195)		—
Total service revenues	3,385		1,528		1,248		3		32		(195)		6,001
Total service revenues – commodity consideration	52		7		179		—		—		—		238
Product sales
External	231		13		60		4,094		138		—		4,536
Internal	118		86		583		198		195		(1,180)		—
Total product sales	349		99		643		4,292		333		(1,180)		4,536
Net gain (loss) from commodity derivatives
Realized	—		—		(44)		25		(20)		—		(39)
Unrealized	—		—		—		(109)		—		—		(109)
Total net gain (loss) from commodity derivatives (2)	—		—		(44)		(84)		(20)		—		(148)
Total revenues	$	3,786	$	1,634	$	2,026	$	4,211	$	345	$	(1,375)	$	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

______________

(1)    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.

(2)    We record transactions that qualify as commodity 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 from commodity derivatives held for energy trading purposes are presented on a net basis in revenue.

Segment assets include Investments, Property, plant, and equipment – net, and Intangible assets – net of accumulated amortization. The following table reflects segment assets and equity-method investments by reportable segments:

	Segment Assets				Equity-Method Investments
	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
	(Millions)
Transmission & Gulf of Mexico	$	19,705	$	17,795	$	652	$	629
Northeast G&P	13,319		13,539		3,477		3,566
West	12,188		10,710		477		843
Gas & NGL Marketing Services	77		130		—		—
Other	1,252		1,143		8		10
Total	46,541		43,317		$	4,614	$	5,048
Total current assets	4,513		3,797
Regulatory assets, deferred charges, and other	1,573		1,319
Total assets	$	52,627	$	48,433