Business Segments (Tables)

6 Months Ended

Jun. 30, 2020

Three Months Ended June 30, 2020:


	Logistics and Marketing		Gathering and Processing		Other		Eliminations		Total
	(millions)
Total operating revenue	$	1,150	$	618	$	—	$	(494)	$	1,274
Gross margin (a)	$	69	$	231	$	—	$	—	$	300
Operating and maintenance expense	(9)		(134)		(5)		—		(148)
Depreciation and amortization expense	(3)		(82)		(8)		—		(93)
General and administrative expense	(1)		(4)		(46)		—		(51)

Other expense (income), net	(4)		1		(2)		—		(5)


Restructuring costs	—		—		(9)		—		(9)
Earnings from unconsolidated affiliates	125		—		—		—		125
Interest expense	—		—		(71)		—		(71)

Net income (loss)	$	177	$	12	$	(141)	$	—	$	48
Net income attributable to noncontrolling interests	—		(1)		—		—		(1)
Net income (loss) attributable to partners	$	177	$	11	$	(141)	$	—	$	47
Non-cash derivative mark-to-market (b)	$	5	$	(62)	$	—	$	—	$	(57)
Non-cash lower of cost or net realizable value adjustments	$	2	$	—	$	—	$	—	$	2
Capital expenditures	$	—	$	32	$	1	$	—	$	33

Investments in unconsolidated affiliates, net	$	56	$	—	$	—	$	—	$	56

Six Months Ended June 30, 2020:


	Logistics and Marketing		Gathering and Processing		Other		Eliminations		Total
	(millions)
Total operating revenue	$	2,508	$	1,531	$	—	$	(1,108)	$	2,931
Gross margin (a)	$	180	$	631	$	—	$	—	$	811
Operating and maintenance expense	(16)		(276)		(9)		—		(301)
Depreciation and amortization expense	(6)		(171)		(15)		—		(192)
General and administrative expense	(3)		(7)		(97)		—		(107)
Asset impairments	—		(746)		—		—		(746)
Other expense, net	(4)		(2)		(2)		—		(8)


Restructuring costs	—		—		(9)		—		(9)
Earnings from unconsolidated affiliates	262		(61)		—		—		201
Interest expense	—		—		(149)		—		(149)
Income tax expense	—		—		(1)		—		(1)
Net income (loss)	$	413	$	(632)	$	(282)	$	—	$	(501)
Net income attributable to noncontrolling interests	—		(2)		—		—		(2)
Net income (loss) attributable to partners	$	413	$	(634)	$	(282)	$	—	$	(503)

Non-cash derivative mark-to-market (b)	$	47	$	30	$	—	$	—	$	77
Non-cash lower of cost or net realizable value adjustments	$	6	$	—	$	—	$	—	$	6
Capital expenditures	$	1	$	99	$	2	$	—	$	102

Investments in unconsolidated affiliates, net	$	90	$	—	$	—	$	—	$	90

Three Months Ended June 30, 2019:


	Logistics and Marketing		Gathering and Processing		Other		Eliminations		Total
	(millions)
Total operating revenue	$	1,613	$	1,024	$	—	$	(839)	$	1,798
Gross margin (a)	$	88	$	354	$	—	$	—	$	442
Operating and maintenance expense	(11)		(165)		(6)		—		(182)
Depreciation and amortization expense	(3)		(91)		(7)		—		(101)
General and administrative expense	(1)		(6)		(61)		—		(68)

Other expense, net	(1)		—		—		—		(1)

Loss on sale of assets, net	(1)		(4)		—		—		(5)
Restructuring costs	—		—		(9)		—		(9)
Earnings from unconsolidated affiliates	114		3		—		—		117
Interest expense	—		—		(73)		—		(73)


Net income (loss)	$	185	$	91	$	(156)	$	—	$	120
Net income attributable to noncontrolling interests	—		(1)		—		—		(1)
Net income (loss) attributable to partners	$	185	$	90	$	(156)	$	—	$	119

Non-cash derivative mark-to-market (b)	$	24	$	15	$	—	$	—	$	39
Non-cash lower of cost or net realizable value adjustments	$	3	$	—	$	—	$	—	$	3
Capital expenditures	$	11	$	111	$	4	$	—	$	126

Investments in unconsolidated affiliates, net	$	139	$	—	$	—	$	—	$	139

Six Months Ended June 30, 2019:


	Logistics and Marketing		Gathering and Processing		Other		Eliminations		Total
	(millions)
Total operating revenue	$	3,658	$	2,312	$	—	$	(1,973)	$	3,997
Gross margin (a)	$	146	$	691	$	—	$	—	$	837
Operating and maintenance expense	(20)		(330)		(10)		—		(360)
Depreciation and amortization expense	(6)		(184)		(14)		—		(204)
General and administrative expense	(4)		(12)		(119)		—		(135)

Other expense, net	(1)		(5)		—		—		(6)

Loss on sale of assets, net	(10)		(4)		—		—		(14)
Restructuring costs	—		—		(9)		—		(9)
Earnings from unconsolidated affiliates	227		3		—		—		230
Interest expense	—		—		(142)		—		(142)
Income tax expense	—		—		(1)		—		(1)

Net income (loss)	$	332	$	159	$	(295)	$	—	$	196
Net income attributable to noncontrolling interests	—		(2)		—		—		(2)
Net income (loss) attributable to partners	$	332	$	157	$	(295)	$	—	$	194

Non-cash derivative mark-to-market (b)	$	6	$	(21)	$	—	$	—	$	(15)
Non-cash lower of cost or net realizable value adjustments	$	8	$	—	$	—	$	—	$	8
Capital expenditures	$	25	$	276	$	7	$	—	$	308

Investments in unconsolidated affiliates, net	$	270	$	—	$	—	$	—	$	270


	June 30,		December 31,
	2020		2019
	(millions)
Segment long-term assets:
Gathering and Processing	$	8,076	$	8,904
Logistics and Marketing	3,832		3,848
Other (c)	236		295

Total long-term assets	12,144		13,047
Current assets	802		1,080
Total assets	$	12,946	$	14,127

(a) Gross margin consists of total operating revenues, including commodity derivative activity, less purchases and related costs. Gross margin is viewed as a non-GAAP financial measure under the rules of the SEC, but is included as a supplemental disclosure because it is a primary performance measure used by management as it represents the results of product sales versus product purchases. As an indicator of our operating performance, gross margin should not be considered an alternative to, or more meaningful than, net income or net cash provided by operating activities as determined in accordance with GAAP. Our gross margin may not be comparable to a similarly titled measure of another company because other entities may not calculate gross margin in the same manner.

(b) Non-cash commodity derivative mark-to-market is included in gross margin, along with cash settlements for our commodity derivative contracts.

(c) Other long-term assets not allocable to segments consist of corporate leasehold improvements and other long-term assets