Derivatives and Risk Management Activities (Tables)

12 Months Ended

Dec. 31, 2022

Derivatives and Risk Management Activities

Summary of impact of derivative activities recognized in earnings

The following table summarizes the impact of our commodity derivatives recognized in earnings (in millions):

	Year Ended December 31,
	2022		2021		2020
Product sales revenues	$	179	$	(710)	$	(302)
Field operating costs	59		71		5
Net gain/(loss) from commodity derivative activity	$	238	$	(639)	$	(297)

Schedule of net broker receivable (payable)

The following table provides the components of our net broker receivable/(payable) (in millions):

	December 31,
	2022		2021
Initial margin	$	93	$	133
Variation margin posted/(returned)	(236)		173
Letters of credit	(25)		(47)
Net broker receivable/(payable)	$	(168)	$	259

Summary of derivative assets and liabilities on Consolidated Balance Sheets on a gross basis

The following table reflects the Consolidated Balance Sheet line items that include the fair values of our commodity derivative assets and liabilities and the effect of the collateral netting. Such amounts are presented on a gross basis, before the effects of counterparty netting. However, we have elected to present our commodity derivative assets and liabilities with the same counterparty on a net basis on our Consolidated Balance Sheet when the legal right of offset exists. Amounts in the table below are presented in millions.

	December 31, 2022								December 31, 2021
					Effect of Collateral Netting		Net Carrying Value Presented on the Balance Sheet						Effect of Collateral Netting		Net Carrying Value Presented on the Balance Sheet
	Commodity Derivatives								Commodity Derivatives
	Assets		Liabilities						Assets		Liabilities
Derivative Assets
Other current assets	$	300	$	(71)	$	(168)	$	61	$	90	$	(210)	$	259	$	139
Other long-term assets, net	9		(5)		—		4		3		—		—		3
Derivative Liabilities
Other current liabilities	2		(13)		—		(11)		4		(24)		—		(20)
Other long-term liabilities and deferred credits	—		—		—		—		3		(9)		—		(6)
Total	$	311	$	(89)	$	(168)	$	54	$	100	$	(243)	$	259	$	116

Summary of net deferred gain/(loss) recognized in AOCI for derivatives

The following table summarizes the net unrealized gain/(loss) recognized in AOCI for derivatives (in millions):

	Year Ended December 31,
	2022		2021		2020
Interest rate derivatives, net	$	94	$	19	$	(10)

Schedule of derivative financial assets and liabilities accounted for at fair value on a recurring basis, by level within the fair value hierarchy

The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis (in millions):

	Fair Value as of December 31, 2022								Fair Value as of December 31, 2021
Recurring Fair Value Measures (1)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Commodity derivatives	$	(7)	$	229	$	—	$	222	$	(17)	$	(124)	$	(2)	$	(143)
Interest rate derivatives	—		120		—		120		—		65		—		65
Preferred Distribution Rate Reset Option	—		—		(189)		(189)		—		—		—		—
Total net derivative asset/(liability)	$	(7)	$	349	$	(189)	$	153	$	(17)	$	(59)	$	(2)	$	(78)

(1)Derivative assets and liabilities are presented above on a net basis but do not include related cash margin deposits.

Summary of reconciliation of changes in fair value of derivatives classified as Level 3

The following table provides a reconciliation of changes in fair value of the beginning and ending balances for our derivatives classified as Level 3 (in millions):

	Year Ended December 31,
	2022		2021
Beginning Balance	$	(2)	$	(29)
Net gains/(losses) for the period included in earnings	(189)		15
Settlements	2		12
Ending Balance	$	(189)	$	(2)
Change in unrealized gains/(losses) included in earnings relating to Level 3 derivatives still held at the end of the period	$	(189)	$	15

Commodity derivatives

Derivatives and Risk Management Activities

Summary of open derivative contracts

The following table summarizes our open derivative positions utilized to hedge the price risk associated with anticipated purchases and sales related to our natural gas processing and NGL fractionation activities as of December 31, 2022.

	Notional Volume (Short)/Long	Remaining Tenor
Natural gas purchases	47.7 Bcf	December 2024
Propane sales	(9.1) MMbls	December 2024
Butane sales	(2.1) MMbls	December 2024
Condensate sales	(0.8) MMbls	December 2024
Fuel gas requirements (1)	7.3 Bcf	December 2023
Power supply requirements (1)	0.4 TWh	December 2023

(1)Positions to hedge a portion of our power supply and fuel gas requirements at our Canadian natural gas processing and fractionation plants.

Interest Rate Swaps

Derivatives and Risk Management Activities

Schedule of terms of outstanding interest rate derivatives

The following table summarizes the terms of our outstanding interest rate derivatives as of December 31, 2022 (notional amounts in millions):

Hedged Transaction	Number and Types of Derivatives Employed	Notional Amount		Expected Termination Date	Average Rate Locked		Accounting Treatment
Anticipated interest payments	8 forward starting swaps (30-year)	$	200	6/15/2023	1.38	%	Cash flow hedge
Anticipated interest payments	4 forward starting swaps (30-year)	$	100	6/14/2024	0.74	%	Cash flow hedge