Segment Disclosures

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Disclosures [Text Block]

Note 10 – 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 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:

◦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:

	Three Months Ended March 31,
	2024		2023
	(Millions)
Modified EBITDA by segment:
Transmission & Gulf of Mexico	$	829	$	715
Northeast G&P	504		470
West	327		304
Gas & NGL Marketing Services	101		567
Total reportable segments	1,761		2,056
Modified EBITDA of other business activities	76		74
	1,837		2,130
Accretion expense associated with asset retirement obligations for nonregulated operations	(18)		(15)
Depreciation and amortization expenses	(548)		(506)
Equity earnings (losses)	137		147
Other investing income (loss) – net	24		8
Proportional Modified EBITDA of equity-method investments	(228)		(229)
Interest expense	(349)		(294)
(Provision) benefit for income taxes	(193)		(284)
Net income (loss)	$	662	$	957

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

	Transmission & Gulf of Mexico		Northeast G&P		West		Gas & NGL Marketing Services (1)		Other		Eliminations		Total
	(Millions)
Three Months Ended March 31, 2024
Segment revenues:
Service revenues
External	$	1,029	$	475	$	397	$	—	$	4	$	—	$	1,905
Internal	20		4		40		—		—		(64)		—
Total service revenues	1,049		479		437		—		4		(64)		1,905
Total service revenues – commodity consideration	9		5		16		—		—		—		30
Product sales
External	30		2		72		707		34		—		845
Internal	31		23		176		(120)		74		(184)		—
Total product sales	61		25		248		587		108		(184)		845
Net gain (loss) from commodity derivatives
Realized	—		—		—		81		5		—		86
Unrealized	—		—		—		(98)		3		—		(95)
Total net gain (loss) from commodity derivatives (2)	—		—		—		(17)		8		—		(9)
Total revenues	$	1,119	$	509	$	701	$	570	$	120	$	(248)	$	2,771
Three Months Ended March 31, 2023
Segment revenues:
Service revenues
External	$	915	$	443	$	332	$	1	$	3	$	—	$	1,694
Internal	25		11		24		—		—		(60)		—
Total service revenues	940		454		356		1		3		(60)		1,694
Total service revenues – commodity consideration	12		6		18		—		—		—		36
Product sales
External	24		8		19		776		18		—		845
Internal	31		41		71		(101)		84		(126)		—
Total product sales	55		49		90		675		102		(126)		845
Net gain (loss) from commodity derivatives
Realized	—		—		39		117		18		—		174
Unrealized	—		—		—		338		(6)		—		332
Total net gain (loss) from commodity derivatives (2)	—		—		39		455		12		—		506
Total revenues	$	1,007	$	509	$	503	$	1,131	$	117	$	(186)	$	3,081

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(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.