Leases

3 Months Ended

Mar. 31, 2020

As of March 31, 2020, we have right-of-use assets of $31 million recorded as Other Assets, $7 million of corresponding obligations recorded as Other Current Liabilities and $27 million of corresponding obligations recorded as Other Liabilities on the Partnership’s Condensed Consolidated Balance Sheet. All lease obligations outstanding during the three months ended March 31, 2020 were classified as operating leases, therefore all cash flows are reflected in Cash Flows from Operating Activities. Rental costs associated with field equipment and buildings were $5 million and $1 million during the three months ended March 31, 2020, respectively, and $7 million and $2 million during the three months ended March 31, 2019, respectively. As of March 31, 2020, the weighted average remaining lease term is 6.7 years and the weighted average discount rate is 5.43%.

The following table presents the Partnership’s lease cost.



	Three Months Ended March 31, 2020
	Gathering and Processing		Transportation and Storage		Total

	(In millions)
Lease Cost:
Operating lease cost	$	2	$	—	$	2
Short-term lease cost	3		—		3
Variable lease cost	1		—		1
Total Lease Cost	$	6	$	—	$	6



	Three Months Ended March 31, 2019
	Gathering and Processing		Transportation and Storage		Total

	(In millions)
Lease Cost:
Operating lease cost	$	2	$	—	$	2
Short-term lease cost	6		1		7
Total Lease Cost	$	8	$	1	$	9

Under ASC 842, as of March 31, 2020, the Partnership has operating lease obligations expiring at various dates. The $4 million difference between undiscounted cash flows for operating leases and our $34 million of lease obligations is due to the impact of the applicable discount rate. Undiscounted cash flows for operating lease liabilities are as follows:



	Year Ended December 31,
	2020		2021		2022		2023		2024		2025 and After		Total

	(In millions)
Noncancellable operating leases	$	7	$	6	$	5	$	5	$	4	$	11	$	38