Reportable Segments

9 Months Ended

Sep. 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 September 30, 2020	Gathering and Processing		Transportation (1) and Storage		Eliminations		Total
	(In millions)
Product sales	$	271	$	79	$	(70)	$	280
Service revenues	192		126		(2)		316
Total Revenues	463		205		(72)		596
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately)	244		78		(72)		250
Operation and maintenance, General and administrative	77		47		—		124
Depreciation and amortization	75		30		—		105
Taxes other than income tax	10		7		—		17
Operating income	$	57	$	43	$	—	$	100
Total Assets	$	9,525	$	5,524	$	(3,274)	$	11,775
Capital expenditures	$	21	$	29	$	—	$	50
Three Months Ended September 30, 2019	Gathering and Processing		Transportation (1) and Storage		Eliminations		Total
	(In millions)
Product sales	$	294	$	100	$	(74)	$	320
Service revenues	248		134		(3)		379
Total Revenues	542		234		(77)		699
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately)	238		102		(77)		263
Operation and maintenance, General and administrative	79		57		—		136
Depreciation and amortization	77		31		—		108
Taxes other than income tax	10		7		—		17
Operating income	$	138	$	37	$	—	$	175
Total assets as of December 31, 2019	$	9,739	$	5,886	$	(3,359)	$	12,266
Capital expenditures	$	70	$	31	$	—	$	101

Nine Months Ended September 30, 2020	Gathering and Processing		Transportation (1) and Storage		Eliminations		Total
	(In millions)
Product sales	$	739	$	213	$	(188)	$	764
Service revenues	592		409		(6)		995
Total Revenues	1,331		622		(194)		1,759
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately)	631		215		(193)		653
Operation and maintenance, General and administrative	250		137		(1)		386
Depreciation and amortization	223		91		—		314
Impairments of property, plant and equipment and goodwill	28		—		—		28
Taxes other than income tax	32		20		—		52
Operating income	$	167	$	159	$	—	$	326
Total Assets	$	9,525	$	5,524	$	(3,274)	$	11,775
Capital expenditures	$	79	$	73	$	—	$	152
Nine Months Ended September 30, 2019	Gathering and Processing		Transportation (1) and Storage		Eliminations		Total
	(In millions)
Product sales	$	1,096	$	381	$	(321)	$	1,156
Service revenues	663		421		(11)		1,073
Total Revenues	1,759		802		(332)		2,229
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately)	895		394		(331)		958
Operation and maintenance, General and administrative	238		152		(1)		389
Depreciation and amortization	229		94		—		323
Taxes other than income tax	31		21		—		52
Operating income	$	366	$	141	$	—	$	507
Total assets as of December 31, 2019	$	9,739	$	5,886	$	(3,359)	$	12,266
Capital expenditures	$	267	$	86	$	—	$	353

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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 nine months ended September 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 nine months ended September 30, 2020 and 2019.