Reportable Segments

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Reportable Segments

Reportable Segments

The Partnership’s determination of reportable segments considers the strategic operating units under which it manages sales, allocates resources and assesses performance of various products and services to customers in differing regulatory environments. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies excerpt in the Partnership’s audited 2019 consolidated financial statements included in the Annual Report. The Partnership uses operating income as the measure of profit or loss for its reportable segments.

The Partnership’s assets and operations are organized into two reportable segments: (i) gathering and processing, which primarily provides natural gas and crude oil gathering and natural gas processing services to our producer customers, and (ii) transportation and storage, which provides interstate and intrastate natural gas pipeline transportation and storage service primarily to our producer, power plant, LDC and industrial end-user customers.

Financial data for reportable segments are as follows:

Three Months Ended June 30, 2020	Gathering and Processing		Transportation (1) and Storage		Eliminations		Total
	(In millions)
Product sales	$	193	$	59	$	(56)	$	196
Service revenues	198		124		(3)		319
Total Revenues	391		183		(59)		515
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately)	176		59		(58)		177
Operation and maintenance, General and administrative	92		45		(1)		136
Depreciation and amortization	74		31		—		105
Taxes other than income tax	11		6		—		17
Operating income	$	38	$	42	$	—	$	80
Total Assets	$	9,552	$	5,662	$	(3,153)	$	12,061
Capital expenditures	$	24	$	24	$	—	$	48
Three Months Ended June 30, 2019	Gathering and Processing		Transportation (1) and Storage		Eliminations		Total
	(In millions)
Product sales	$	379	$	114	$	(100)	$	393
Service revenues	208		138		(4)		342
Total Revenues	587		252		(104)		735
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately)	297		123		(103)		317
Operation and maintenance, General and administrative	75		50		(1)		124
Depreciation and amortization	78		32		—		110
Taxes other than income tax	10		7		—		17
Operating income	$	127	$	40	$	—	$	167
Total assets as of December 31, 2019	$	9,739	$	5,886	$	(3,359)	$	12,266
Capital expenditures	$	90	$	19	$	—	$	109

Six Months Ended June 30, 2020	Gathering and Processing		Transportation (1) and Storage		Eliminations		Total
	(In millions)
Product sales	$	468	$	134	$	(118)	$	484
Service revenues	400		283		(4)		679
Total Revenues	868		417		(122)		1,163
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately)	387		137		(121)		403
Operation and maintenance, General and administrative	173		90		(1)		262
Impairments	28		—		—		28
Depreciation and amortization	148		61		—		209
Taxes other than income tax	22		13		—		35
Operating income	$	110	$	116	$	—	$	226
Total Assets	$	9,552	$	5,662	$	(3,153)	$	12,061
Capital expenditures	$	58	$	44	$	—	$	102
Six Months Ended June 30, 2019	Gathering and Processing		Transportation (1) and Storage		Eliminations		Total
	(In millions)
Product sales	$	802	$	281	$	(247)	$	836
Service revenues	415		287		(8)		694
Total Revenues	1,217		568		(255)		1,530
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately)	657		292		(254)		695
Operation and maintenance, General and administrative	159		95		(1)		253
Depreciation and amortization	152		63		—		215
Taxes other than income tax	21		14		—		35
Operating income	$	228	$	104	$	—	$	332
Total assets as of December 31, 2019	$	9,739	$	5,886	$	(3,359)	$	12,266
Capital expenditures	$	197	$	55	$	—	$	252

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(1)See Note 8 for discussion regarding ownership interests in SESH and related equity earnings included in the transportation and storage segment for the three and six months ended June 30, 2020 and 2019.

^[1]

[1] See Note 8 for discussion regarding ownership interests in SESH and related equity earnings included in the transportation and storage segment for the three and six months ended June 30, 2020 and 2019.