Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-13643 | |
Entity Registrant Name | ONEOK, Inc. | |
Entity Incorporation, State or Country Code | OK | |
Entity Tax Identification Number | 73-1520922 | |
Entity Address, Address Line One | 100 West Fifth Street, | |
Entity Address, City or Town | Tulsa, | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74103 | |
City Area Code | 918 | |
Local Phone Number | 588-7000 | |
Title of 12(b) Security | Common stock, par value of $0.01 | |
Trading Symbol | OKE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 447,674,825 | |
Entity Central Index Key | 0001039684 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues | ||||
Revenues (Note L) | $ 3,732 | $ 5,996 | $ 8,253 | $ 11,441 |
Cost of sales and fuel (exclusive of items shown separately below) | 2,482 | 4,878 | 5,829 | 9,244 |
Operations and maintenance | 296 | 231 | 535 | 445 |
Depreciation and amortization | 170 | 158 | 332 | 312 |
General taxes | 47 | 46 | 104 | 96 |
Other operating (income) expense, net (Note C) | 0 | (6) | (781) | (7) |
Operating income | 737 | 689 | 2,234 | 1,351 |
Equity in net earnings from investments (Note J) | 43 | 36 | 83 | 72 |
Other income (expense), net | 13 | (9) | 21 | (22) |
Interest expense (net of capitalized interest of $6, $13, $24, and $25, respectively) | (180) | (171) | (346) | (343) |
Income before income taxes | 613 | 545 | 1,992 | 1,058 |
Income taxes | (145) | (131) | (475) | (253) |
Net income | 468 | 414 | 1,517 | 805 |
Less: Preferred stock dividends | 0 | 0 | 0 | 0 |
Net income available to common shareholders | $ 468 | $ 414 | $ 1,517 | $ 805 |
Basic earnings per common share (Note I) | $ 1.04 | $ 0.93 | $ 3.38 | $ 1.80 |
Diluted earnings per common share (Note I) | $ 1.04 | $ 0.92 | $ 3.38 | $ 1.80 |
Average shares (millions) | ||||
Basic | 448.3 | 447.5 | 448.2 | 447.3 |
Diluted | 449 | 448.2 | 449 | 448.3 |
Commodity Sales | ||||
Revenues | ||||
Revenues (Note L) | $ 3,371 | $ 5,651 | $ 7,527 | $ 10,756 |
Services | ||||
Revenues | ||||
Revenues (Note L) | $ 361 | $ 345 | $ 726 | $ 685 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Income (Parenthetical) [Abstract] | ||||
Capitalized interest | $ 6 | $ 13 | $ 24 | $ 25 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Income | $ 468 | $ 414 | $ 1,517 | $ 805 |
Other comprehensive income (loss), net of tax | ||||
Change in fair value of derivatives, net of tax of $(15), $(7), $(22) and $14, respectively | 51 | 22 | 74 | (50) |
Derivative amounts reclassified to net income, net of tax of $7, $(21), $10 and $(41), respectively | (25) | 70 | (37) | 136 |
Change in retirement and other postretirement benefit plan obligations, net of tax of $-, $(1), $- and $(2), respectively | 1 | 3 | 1 | 6 |
Other comprehensive income (loss) of unconsolidated affiliates, net of tax of $-, $(2), $1 and $(4), respectively | (3) | 6 | (5) | 13 |
Total other comprehensive income, net of tax | 24 | 101 | 33 | 105 |
Comprehensive income | $ 492 | $ 515 | $ 1,550 | $ 910 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARANTHETICAL) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Change in fair value of derivatives, tax | $ (15) | $ (7) | $ (22) | $ 14 |
Derivative amounts reclassified to net income, tax | 7 | (21) | 10 | (41) |
Change in retirement and other postretirement benefit plan obligations, tax | 0 | (1) | 0 | (2) |
Other comprehensive income (loss) of unconsolidated affiliates, tax | $ 0 | $ (2) | $ 1 | $ (4) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 106 | $ 220 |
Accounts receivable, net | 1,023 | 1,532 |
Materials and supplies | 146 | 149 |
NGLs and natural gas in storage | 314 | 432 |
Commodity imbalances | 30 | 43 |
Other current assets | 244 | 172 |
Total current assets | 1,863 | 2,548 |
Property, plant and equipment | ||
Property, plant and equipment | 25,601 | 25,015 |
Accumulated depreciation and amortization | 5,372 | 5,063 |
Net property, plant and equipment | 20,229 | 19,952 |
Investments and other assets | ||
Investments in unconsolidated affiliates | 885 | 802 |
Goodwill and net intangible assets | 748 | 753 |
Other assets | 313 | 324 |
Total investments and other assets | 1,946 | 1,879 |
Total assets | 24,038 | 24,379 |
Current liabilities | ||
Current maturities of long-term debt (Note F) | 0 | 925 |
Accounts payable | 880 | 1,359 |
Commodity imbalances | 163 | 254 |
Accrued taxes | 130 | 136 |
Accrued interest | 214 | 233 |
Operating lease liability, current | 12 | 12 |
Other current liabilities | 118 | 132 |
Total current liabilities | 1,517 | 3,051 |
Long-term debt, excluding current maturities (Note F) | 12,742 | 12,696 |
Deferred credits and other liabilities | ||
Deferred income taxes | 2,168 | 1,739 |
Operating lease liability, noncurrent | 63 | 68 |
Other deferred credits | 330 | 331 |
Total deferred credits and other liabilities | 2,561 | 2,138 |
Commitments and contingencies (Note K) | ||
Equity (Note G) | ||
Preferred stock, $0.01 par value: authorized and issued 20,000 shares at June 30, 2023, and December 31, 2022 | 0 | 0 |
Common stock, $0.01 par value: authorized 1,200,000,000 shares; issued 474,916,234 shares and outstanding 447,671,698 shares at June 30, 2023; issued 474,916,234 shares and outstanding 447,157,771 shares at December 31, 2022 | 5 | 5 |
Paid-in capital | 7,270 | 7,253 |
Accumulated other comprehensive loss (Note H) | (75) | (108) |
Retained earnings | 711 | 50 |
Treasury stock, at cost: 27,244,536 shares at June 30, 2023, and 27,758,463 shares at December 31, 2022 | (693) | (706) |
Total equity | 7,218 | 6,494 |
Total liabilities and equity | $ 24,038 | $ 24,379 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Equity (Note G) | ||
Preferred stock, shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares, authorized (in shares) | 20,000 | 20,000 |
Preferred stock, shares, issued (in shares) | 20,000 | 20,000 |
Common stock, shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares, authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Common stock, shares, issued (in shares) | 474,916,234 | 474,916,234 |
Common stock, shares, outstanding (in shares) | 447,671,698 | 447,157,771 |
Treasury stock, shares, (in shares) | 27,244,536 | 27,758,463 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities | ||
Net Income | $ 1,517 | $ 805 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 332 | 312 |
Equity in net earnings from investments | (83) | (72) |
Distributions received from unconsolidated affiliates | 86 | 72 |
Deferred income taxes | 419 | 228 |
Medford settlement gain | (779) | 0 |
Medford settlement proceeds | 502 | 0 |
Other, net | 43 | 45 |
Changes in assets and liabilities: | ||
Accounts receivable | 456 | (340) |
NGLs and natural gas in storage, net of commodity imbalances | 40 | (165) |
Accounts payable | (443) | 569 |
Risk-management assets and liabilities | 47 | (131) |
Other assets and liabilities, net | (144) | (73) |
Cash provided by operating activities | 1,993 | 1,250 |
Investing activities | ||
Capital expenditures (less allowance for equity funds used during construction) | (594) | (559) |
Contributions to unconsolidated affiliates | (108) | (1) |
Distributions received from unconsolidated affiliates in excess of cumulative earnings | 16 | 13 |
Medford settlement proceeds | 328 | 0 |
Other, net | 5 | 4 |
Cash used in investing activities | (353) | (543) |
Financing activities | ||
Dividends paid | (855) | (835) |
Issuance of long-term debt, net of discounts | 60 | 120 |
Repayment of long-term debt | (940) | 0 |
Other, net | (19) | (2) |
Cash used in financing activities | (1,754) | (717) |
Change in cash and cash equivalents | (114) | (10) |
Cash and cash equivalents at beginning of period | 220 | 146 |
Cash and cash equivalents at end of period | $ 106 | $ 136 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock, Common |
Shares, issued, beginning balance at Dec. 31, 2021 | 20,000 | 474,916,234 | |||||
Total equity, beginning balance at Dec. 31, 2021 | $ 6,015 | $ 0 | $ 5 | $ 7,214 | $ (472) | $ 0 | $ (732) |
Net income | 391 | 0 | 0 | 0 | 0 | 391 | 0 |
Other comprehensive income | $ 4 | 0 | 0 | 0 | 4 | 0 | 0 |
Preferred stock, dividends paid (in dollars per share) | $ 13.75 | ||||||
Preferred stock dividends | $ 0 | 0 | $ 0 | 0 | 0 | 0 | 0 |
Common Stock Issued During Period, Shares, Other | 0 | ||||||
Common Stock Issued During Period, Value, Other | $ 6 | 0 | $ 0 | (6) | 0 | 0 | 12 |
Common stock dividends paid (in dollars per share) | $ 0.935 | ||||||
Common Stock Dividends | $ (417) | 0 | 0 | (26) | 0 | (391) | 0 |
Other, net | (5) | $ 0 | $ 0 | (5) | 0 | 0 | 0 |
Shares, issued, ending balance at Mar. 31, 2022 | 20,000 | 474,916,234 | |||||
Total equity, ending balance at Mar. 31, 2022 | 5,994 | $ 0 | $ 5 | 7,177 | (468) | 0 | (720) |
Shares, issued, beginning balance at Dec. 31, 2021 | 20,000 | 474,916,234 | |||||
Total equity, beginning balance at Dec. 31, 2021 | 6,015 | $ 0 | $ 5 | 7,214 | (472) | 0 | (732) |
Net income | 805 | ||||||
Other comprehensive income | 105 | ||||||
Shares, issued, ending balance at Jun. 30, 2022 | 20,000 | 474,916,234 | |||||
Total equity, ending balance at Jun. 30, 2022 | 6,115 | $ 0 | $ 5 | 7,190 | (367) | 0 | (713) |
Shares, issued, beginning balance at Mar. 31, 2022 | 20,000 | 474,916,234 | |||||
Total equity, beginning balance at Mar. 31, 2022 | 5,994 | $ 0 | $ 5 | 7,177 | (468) | 0 | (720) |
Net income | 414 | 0 | 0 | 0 | 0 | 414 | 0 |
Other comprehensive income | $ 101 | 0 | 0 | 0 | 101 | 0 | 0 |
Preferred stock, dividends paid (in dollars per share) | $ 13.75 | ||||||
Preferred stock dividends | $ 0 | 0 | $ 0 | 0 | 0 | 0 | 0 |
Common Stock Issued During Period, Shares, Other | 0 | ||||||
Common Stock Issued During Period, Value, Other | $ 14 | 0 | $ 0 | 7 | 0 | 0 | 7 |
Common stock dividends paid (in dollars per share) | $ 0.935 | ||||||
Common Stock Dividends | $ (418) | 0 | 0 | (4) | 0 | (414) | 0 |
Other, net | 10 | $ 0 | $ 0 | 10 | 0 | 0 | 0 |
Shares, issued, ending balance at Jun. 30, 2022 | 20,000 | 474,916,234 | |||||
Total equity, ending balance at Jun. 30, 2022 | 6,115 | $ 0 | $ 5 | 7,190 | (367) | 0 | (713) |
Shares, issued, beginning balance at Dec. 31, 2022 | 20,000 | 474,916,234 | |||||
Total equity, beginning balance at Dec. 31, 2022 | 6,494 | $ 0 | $ 5 | 7,253 | (108) | 50 | (706) |
Net income | 1,049 | 0 | 0 | 0 | 0 | 1,049 | 0 |
Other comprehensive income | $ 9 | 0 | 0 | 0 | 9 | 0 | 0 |
Preferred stock, dividends paid (in dollars per share) | $ 13.75 | ||||||
Preferred stock dividends | $ 0 | 0 | $ 0 | 0 | 0 | 0 | 0 |
Common Stock Issued During Period, Shares, Other | 0 | ||||||
Common Stock Issued During Period, Value, Other | $ 4 | 0 | $ 0 | (3) | 0 | 0 | 7 |
Common stock dividends paid (in dollars per share) | $ 0.955 | ||||||
Common Stock Dividends | $ (427) | 0 | 0 | 0 | 0 | (427) | 0 |
Other, net | 3 | $ 0 | $ 0 | 3 | 0 | 0 | 0 |
Shares, issued, ending balance at Mar. 31, 2023 | 20,000 | 474,916,234 | |||||
Total equity, ending balance at Mar. 31, 2023 | 7,132 | $ 0 | $ 5 | 7,253 | (99) | 672 | (699) |
Shares, issued, beginning balance at Dec. 31, 2022 | 20,000 | 474,916,234 | |||||
Total equity, beginning balance at Dec. 31, 2022 | 6,494 | $ 0 | $ 5 | 7,253 | (108) | 50 | (706) |
Net income | 1,517 | ||||||
Other comprehensive income | 33 | ||||||
Shares, issued, ending balance at Jun. 30, 2023 | 20,000 | 474,916,234 | |||||
Total equity, ending balance at Jun. 30, 2023 | 7,218 | $ 0 | $ 5 | 7,270 | (75) | 711 | (693) |
Shares, issued, beginning balance at Mar. 31, 2023 | 20,000 | 474,916,234 | |||||
Total equity, beginning balance at Mar. 31, 2023 | 7,132 | $ 0 | $ 5 | 7,253 | (99) | 672 | (699) |
Net income | 468 | 0 | 0 | 0 | 0 | 468 | 0 |
Other comprehensive income | $ 24 | 0 | 0 | 0 | 24 | 0 | 0 |
Preferred stock, dividends paid (in dollars per share) | $ 13.75 | ||||||
Preferred stock dividends | $ 0 | 0 | $ 0 | 0 | 0 | 0 | 0 |
Common Stock Issued During Period, Shares, Other | 0 | ||||||
Common Stock Issued During Period, Value, Other | $ 13 | 0 | $ 0 | 7 | 0 | 0 | 6 |
Common stock dividends paid (in dollars per share) | $ 0.955 | ||||||
Common Stock Dividends | $ (429) | 0 | 0 | 0 | 0 | (429) | 0 |
Other, net | 10 | $ 0 | $ 0 | 10 | 0 | 0 | 0 |
Shares, issued, ending balance at Jun. 30, 2023 | 20,000 | 474,916,234 | |||||
Total equity, ending balance at Jun. 30, 2023 | $ 7,218 | $ 0 | $ 5 | $ 7,270 | $ (75) | $ 711 | $ (693) |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Parenthetical - $ / shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Preferred stock, dividends paid (in dollars per share) | $ 13.75 | $ 13.75 | $ 13.75 | $ 13.75 |
Common stock dividends paid (in dollars per share) | $ 0.955 | $ 0.955 | $ 0.935 | $ 0.935 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESOur accompanying unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC. These statements have been prepared in accordance with GAAP and reflect all adjustments that, in our opinion, are necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. The 2022 year-end Consolidated Balance Sheet data was derived from our audited Consolidated Financial Statements but does not include all disclosures required by GAAP. These unaudited Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements in our Annual Report. Recently Issued Accounting Standards Update - Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of ASUs to the FASB Accounting Standards Codification. We consider the applicability and impact of all ASUs. ASUs not discussed herein or in our Annual Report were assessed and determined to be either not applicable or clarifications of ASUs previously issued. There have been no new accounting pronouncements that have become effective or have been issued that are of significance or potential significance to us. |
ACQUISITION OF MAGELLAN (Notes)
ACQUISITION OF MAGELLAN (Notes) | 3 Months Ended |
Jun. 30, 2023 | |
ACQUISITION OF MAGELLAN [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures | ACQUISITION OF MAGELLAN On May 14, 2023, we announced an agreement to acquire all of the outstanding common units of Magellan in a cash-and-stock transaction. Magellan primarily transports, stores and distributes refined petroleum products and crude oil. Pursuant to the Merger Agreement, each common unit of Magellan will be exchanged for a fixed ratio of 0.667 shares of ONEOK common stock and $25.00 of cash in a taxable transaction to Magellan common unitholders. Following completion of the Merger Transaction, we expect Magellan to be our wholly owned subsidiary. ONEOK, ONEOK Partners and the Intermediate Partnership expect to issue guarantees of Magellan’s debt, which we expect to remain outstanding. Our Board of Directors and the Board of Directors of the general partner of Magellan both unanimously approved the Merger Agreement. The Merger Transaction is expected to close during the third quarter of 2023, subject to the approval of ONEOK shareholders and Magellan unitholders and other customary closing conditions. In June 2023, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired, which satisfies one of the conditions to the closing of the Merger Transaction. If the Merger Agreement is terminated under certain conditions, Magellan may be required to reimburse our expenses up to $125 million or pay us a termination fee equal to $275 million less any expenses previously paid. Further, we may be required to reimburse Magellan’s expenses up to $75 million or pay Magellan a termination fee equal to $450 million, less any expenses previously paid. We intend to finance the cash portion of the Merger Transaction consideration with debt. In May 2023, we entered into a commitment letter for an unsecured 364-day bridge loan facility in an aggregate principal amount of $5.25 billion, which is subject to a number of customary conditions. Prior to the close of the Merger Transaction, we expect to issue senior unsecured notes and terminate the commitment letter undrawn. If the Merger Transaction closes, it will be accounted for using the acquisition method of accounting for business combinations in accordance with ASC 805. Accordingly, the assets acquired and liabilities assumed will be recorded at their acquisition date fair values. Any excess of the consideration to be transferred over the estimated fair value of assets acquired and liabilities assumed will be recorded as goodwill. |
MEDFORD INCIDENT (Notes)
MEDFORD INCIDENT (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Unusual or Infrequent Items, or Both, Disclosure | MEDFORD INCIDENTOn July 9, 2022, a fire occurred at our 210 MBbl/d Medford, Oklahoma, natural gas liquids fractionation facility. Beginning in August 2022, we developed claims related to the Medford incident and recorded accruals for the expected insurance recoveries. We assessed incurred costs and lost earnings related to business interruption and property damage to our facility, as well as timing of recognition under applicable insurance recovery guidance, and recorded accruals of $151 million in 2022 for insurance recoveries that offset our incurred costs and losses.On January 9, 2023, we reached an agreement with our insurers to settle all claims for physical damage and business interruption related to the Medford incident. Under the terms of the settlement agreement, we agreed to resolve the claims for total insurance payments of $930 million, $100 million of which was received in 2022. The remaining $830 million was received in the first quarter 2023. The proceeds serve as settlement for property damage, business interruption claims to the date of the settlement and as payment in lieu of future business interruption insurance claims.In the first quarter 2023, we applied the $830 million received to our outstanding insurance receivable at December 31, 2022, of $51 million, and recorded an operational gain for the remaining $779 million in other operating (income) expense, net, within the Consolidated Statement of Income. We classified proceeds received within the Consolidated Statement of Cash Flows based on our assessment of the nature of the loss (property and business interruption) included in the settlement. |
FAIR VALUE MEASUREMENTS (Notes)
FAIR VALUE MEASUREMENTS (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Determining Fair Value - For our fair value measurements, we utilize market prices, third-party pricing services, present value methods and standard option valuation models to determine the price we would receive from the sale of an asset or the transfer of a liability in an orderly transaction at the measurement date. We measure the fair value of a group of financial assets and liabilities consistent with how a market participant would price the net risk exposure at the measurement date. Determining the appropriate classification of our fair value measurements within the fair value hierarchy requires management’s judgment regarding the degree to which market data is observable or corroborated by observable market data. We categorize derivatives based on the lowest level input that is significant to the fair value measurement in its entirety. Our valuation techniques and inputs are consistent with those discussed in Note A of the Notes to Consolidated Financial Statements in our Annual Report. Recurring Fair Value Measurements - The following tables set forth our recurring fair value measurements as of the dates indicated: June 30, 2023 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net ( Millions of dollars ) Derivative assets Commodity contracts $ 36 $ 169 $ — $ 205 $ (165) $ 40 Interest-rate contracts — 17 — 17 — 17 Total derivative assets $ 36 $ 186 $ — $ 222 $ (165) $ 57 Derivative liabilities Commodity contracts $ (16) $ (111) $ — $ (127) $ 127 $ — Interest-rate contracts — (4) — (4) — (4) Total derivative liabilities $ (16) $ (115) $ — $ (131) $ 127 $ (4) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At June 30, 2023, we posted no cash and held cash of $38 million from various counterparties, which offsets our derivative net asset position under master netting arrangements as shown in the table above. December 31, 2022 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (Millions of dollars) Derivative assets Commodity contracts $ 15 $ 152 $ — $ 167 $ (125) $ 42 Interest-rate contracts — 11 — 11 — 11 Total derivative assets $ 15 $ 163 $ — $ 178 $ (125) $ 53 Derivative liabilities Commodity contracts $ (38) $ (87) $ — $ (125) $ 125 $ — Total derivative liabilities $ (38) $ (87) $ — $ (125) $ 125 $ — (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At December 31, 2022, we held no cash and posted $9 million of cash with various counterparties, which is included in other current assets in our Consolidated Balance Sheet. The following table sets forth a reconciliation of our Level 3 fair value measurements for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, Derivative Assets (Liabilities) 2023 2022 2023 2022 ( Millions of dollars ) Net liabilities at beginning of period $ — $ (190) $ — $ (114) Total changes in fair value: Settlements included in net income (a) — 57 — 60 New Level 3 derivatives included in other comprehensive income (b) — 9 — 9 Unrealized change included in other comprehensive income (b) — 14 — (65) Net liabilities at end of period $ — $ (110) $ — $ (110) (a) - Included in commodity sales revenues/cost of sales and fuel in our Consolidated Statements of Income. (b) - Included in change in fair value of derivatives in our Consolidated Statements of Comprehensive Income. During the year ended December 31, 2022, we transferred out of Level 3 commodity derivatives associated with certain locations for NGL basis swaps, principally due to improved transparency of market prices as a result of the volume and frequency of transactions in these markets. We consider the valuation of these commodity derivatives, which are transacted through a clearing broker and valued with an unadjusted published price from an exchange, as a Level 2 valuation. Other Financial Instruments - The approximate fair value of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings is equal to book value due to the short-term nature of these items. Our cash and cash equivalents are composed of bank and money market accounts and are classified as Level 1. Our short-term borrowings are classified as Level 2 since the estimated fair value of the short-term borrowings can be determined using information available in the commercial paper market. We have investments associated with our supplemental executive retirement plan and nonqualified deferred compensation plan that are carried at fair value and primarily are composed of exchange-traded mutual funds classified as Level 1. The estimated fair value of our consolidated long-term debt, including current maturities, was $11.9 billion and $12.7 billion at June 30, 2023, and December 31, 2022, respectively. The book value of our consolidated long-term debt, including current maturities, was $12.7 billion and $13.6 billion at June 30, 2023, and December 31, 2022, respectively. The estimated fair value of the aggregate senior notes outstanding was determined using quoted market prices for similar issues with similar terms and maturities. The estimated fair value of our consolidated long-term debt is classified as Level 2. |
RISK MANAGEMENT AND HEDGING ACT
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES | RISK-MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES Risk-management Activities - We are sensitive to changes in natural gas, crude oil and NGL prices, principally as a result of contractual terms under which these commodities are processed, purchased and sold. We are also subject to the risk of interest-rate fluctuation in the normal course of business. We use physical-forward purchases and sales and financial derivatives to secure a certain price for a portion of our natural gas, condensate and purity NGLs; to reduce our exposure to commodity price and interest-rate fluctuations; and to achieve more predictable cash flows. We follow established policies and procedures to assess risk and approve, monitor and report our risk-management activities. We have not used these instruments for trading purposes. Commodity price risk - Commodity price risk refers to the risk of loss in cash flows and future earnings arising from adverse changes in the price of natural gas, NGLs and condensate. We may use commodity derivative instruments to reduce the near-term commodity price risk associated with a portion of our forecasted purchases and sales of commodities. Our exposure to commodity price risk is consistent with that discussed in our Annual Report. Interest-rate risk - We may manage interest-rate risk through the use of fixed-rate debt, floating-rate debt, Treasury locks and interest-rate swaps. Treasury locks are agreements to pay the difference between the benchmark Treasury rate and the rate that is designated in the terms of the agreement. In the second quarter 2023, we entered into $1.1 billion of Treasury locks to hedge the variability of interest payments on a portion of our forecasted debt issuances, resulting in a total of $1.1 billion of Treasury locks outstanding as of June 30, 2023. All of our Treasury locks are designated as cash flow hedges. Interest-rate swaps are agreements to exchange interest payments at some future point based on specified notional amounts. At June 30, 2023 and December 31, 2022, we had forward-starting interest-rate swaps with notional amounts totaling $0.4 billion, to hedge the variability of interest payments on a portion of our forecasted debt issuances. All of our interest-rate swaps are designated as cash flow hedges. Fair Values of Derivative Instruments - The following table sets forth the fair values of our derivative instruments presented on a gross basis as of the dates indicated: June 30, 2023 December 31, 2022 Location in our Assets (Liabilities) Assets (Liabilities) Derivatives designated as hedging instruments ( Millions of dollars ) Commodity contracts (a) Other current assets $ 205 $ (127) $ 160 $ (123) Other assets — — 6 (1) Interest-rate contracts Other current assets/liabilities 17 (4) 11 — Total derivatives designated as hedging instruments 222 (131) 177 (124) Derivatives not designated as hedging instruments Commodity contracts (a) Other current assets — — 1 (1) Total derivatives not designated as hedging instruments — — 1 (1) Total derivatives $ 222 $ (131) $ 178 $ (125) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. Notional Quantities for Derivative Instruments - The following table sets forth the notional quantities for derivative instruments held as of the dates indicated: June 30, December 31 Contract Net Purchased/Payor Derivatives designated as hedging instruments: Cash flow hedges Fixed price - Natural gas ( Bcf ) Futures (20.2) (39.3) - Crude oil and NGLs ( MMBbl ) Futures (12.9) (8.4) Basis - Natural gas ( Bcf ) Futures (18.2) (39.3) Interest-rate contracts ( Billions of dollars ) Swaps $ 0.4 $ 0.4 Interest-rate contracts ( Billions of dollars ) Treasury locks $ 1.1 $ — Derivatives not designated as hedging instruments: Fixed price - Natural gas ( Bcf ) Futures — (0.1) - Crude oil and NGLs ( MMBbl ) Futures — 0.1 Basis - Natural gas ( Bcf ) Futures — (0.1) Cash Flow Hedges - The following table sets forth the unrealized change in fair value of cash flow hedges in other comprehensive income (loss) for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Commodity contracts $ 54 $ (34) $ 94 $ (208) Interest-rate contracts 12 63 2 144 Total unrealized change in fair value of cash flow hedges in other comprehensive income (loss) $ 66 $ 29 $ 96 $ (64) The following table sets forth the effect of cash flow hedges on net income for the periods indicated: Derivatives in Cash Flow Location of Gain (Loss) Reclassified from Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Millions of dollars ) Commodity contracts Commodity sales revenues $ 95 $ (257) $ 118 $ (468) Cost of sales and fuel (57) 176 (60) 310 Interest-rate contracts Interest expense (6) (10) (11) (19) Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives $ 32 $ (91) $ 47 $ (177) Credit Risk - We monitor the creditworthiness of our counterparties and compliance with policies and limits established by our Risk Oversight and Strategy Committee. We maintain credit policies with regard to our counterparties that we believe minimize credit risk. Our policies and related credit risk are consistent with those discussed in our Annual Report. |
DEBT DEBT (Notes)
DEBT DEBT (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | DEBT The following table sets forth our consolidated debt as of the dates indicated: June 30, December 31, ( Millions of dollars ) Commercial paper outstanding (a) $ — $ — Senior unsecured obligations: $425 at 5.0% due September 2023 — 425 $500 at 7.5% due September 2023 — 500 $500 at 2.75% due September 2024 500 500 $500 at 4.9% due March 2025 500 500 $400 at 2.2% due September 2025 387 387 $600 at 5.85% due January 2026 600 600 $500 at 4.0% due July 2027 500 500 $800 at 4.55% due July 2028 800 800 $100 at 6.875% due September 2028 100 100 $700 at 4.35% due March 2029 700 700 $750 at 3.4% due September 2029 714 714 $850 at 3.1% due March 2030 780 780 $600 at 6.35% due January 2031 600 600 $750 at 6.1% due November 2032 750 750 $400 at 6.00% due June 2035 400 400 $600 at 6.65% due October 2036 600 600 $600 at 6.85% due October 2037 600 600 $650 at 6.125% due February 2041 650 650 $400 at 6.2% due September 2043 400 400 $700 at 4.95% due July 2047 689 689 $1,000 at 5.2% due July 2048 1,000 1,000 $750 at 4.45% due September 2049 653 673 $500 at 4.5% due March 2050 443 443 $300 at 7.15% due January 2051 300 300 Guardian $120 term loan, rate of 6.33% as of June 30, 2023, due June 2025 120 120 Viking $60 term loan, rate of 6.46% as of June 30, 2023, due March 2026 60 — Total debt 12,846 13,731 Unamortized portion of terminated swaps 9 10 Unamortized debt issuance costs and discounts (113) (120) Current maturities of long-term debt — (925) Long-term debt $ 12,742 $ 12,696 (a) - Individual issuances of commercial paper under our commercial paper program generally mature in 90 days or less. $2.5 Billion Credit Agreement - Our $2.5 Billion Credit Agreement is a revolving credit facility and contains certain customary conditions for borrowing, as well as customary financial, affirmative and negative covenants. Among other things, these covenants include maintaining a ratio of consolidated net indebtedness to adjusted EBITDA (EBITDA, as defined in our $2.5 Billion Credit Agreement, adjusted for all noncash charges and increased for projected EBITDA from certain lender-approved capital expansion projects). In May 2023, we entered into an amendment to our $2.5 Billion Credit Agreement, which, among other things, provided for certain amendments to the definition of consolidated net total debt, as defined within the $2.5 Billion Credit Agreement. Under our $2.5 Billion Credit Agreement, if the Merger Transaction closes, our leverage ratio covenant increases to 5.5 to 1 for the quarter the Merger Transaction closes and the two following quarters. Thereafter, the covenant will decrease to 5.0 to 1. At June 30, 2023, we had no outstanding borrowings, our ratio of indebtedness to adjusted EBITDA was 2.8 to 1 and we were in compliance with all covenants under our $2.5 Billion Credit Agreement. Viking Term Loan Agreement - In March 2023, Viking entered into a $60 million senior unsecured Term Loan Agreement, which was fully drawn as of June 30, 2023. The proceeds were used to repay intercompany debt with ONEOK and for general corporate purposes. The Viking Term Loan Agreement matures in March 2026 and bears interest at Term SOFR plus an applicable margin. As of June 30, 2023, Viking is in compliance with all covenants under the Viking Term Loan Agreement. Debt Repayments - In June 2023, we redeemed our $500 million, 7.5% senior notes due September 2023 at 100% of the principal amount, plus accrued and unpaid interest, with cash on hand. In February 2023, we redeemed our $425 million, 5.0% senior notes due September 2023 at 100% of the principal amount, plus accrued and unpaid interest, with cash on hand. Debt Guarantees - ONEOK, ONEOK Partners and the Intermediate Partnership have cross guarantees in place for ONEOK’s and ONEOK Partners’ indebtedness. The Guardian Term Loan Agreement and Viking Term Loan Agreement are not guaranteed by ONEOK, ONEOK Partners or the Intermediate Partnership. |
EQUITY (Notes)
EQUITY (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
EQUITY | EQUITY Dividends - Holders of our common stock share equally in any dividend declared by our Board of Directors, subject to the rights of the holders of outstanding Series E Preferred Stock. Dividends paid on our common stock in February 2023 and May 2023 were $0.955 per share. A common stock dividend of $0.955 per share was declared for shareholders of record at the close of business on August 1, 2023, payable August 14, 2023. Our Series E Preferred Stock pays quarterly dividends on each share of Series E Preferred Stock, when and if, declared by our Board of Directors, at a rate of 5.5% per year. We paid dividends for the Series E Preferred Stock of $0.3 million in February 2023 and May 2023. Dividends totaling $0.3 million were declared for the Series E Preferred Stock and are payable August 14, 2023. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table sets forth the balance in accumulated other comprehensive loss for the period indicated, net of tax: Risk- Retirement and Risk- Accumulated ( Millions of dollars ) January 1, 2023 $ (58) $ (55) $ 5 $ (108) Other comprehensive income (loss) before reclassifications 74 — (1) 73 Amounts reclassified to net income (b) (37) 1 (4) (40) Other comprehensive income (loss) 37 1 (5) 33 June 30, 2023 $ (21) $ (54) $ — $ (75) (a) - Includes amounts related to supplemental executive retirement plan. (b) - See Note E for details of amounts reclassified to net income for risk-management assets/liabilities. The following table sets forth information about the balance of accumulated other comprehensive loss at June 30, 2023, representing unrealized gains (losses) related to risk-management assets and liabilities, net of tax: Risk- (Millions of dollars ) Commodity derivative instruments expected to be realized within the next 18 months (a) $ 60 Settled interest-rate swaps to be recognized over the life of the long-term, fixed-rate debt (b) (91) Interest-rate swaps and Treasury locks with future settlement dates expected to be amortized over the life of long-term debt 10 Accumulated other comprehensive loss at June 30, 2023 $ (21) (a) - Based on commodity prices on June 30, 2023, we expect net gains of $60 million, net of tax, will be reclassified into earnings during the next 12 months. The remaining forecasted gains and losses have offsetting positions and are immaterial. (b) - We expect net losses of $18 million, net of tax, will be reclassified into earnings during the next 12 months. |
EARNINGS PER SHARE EARNINGS PER
EARNINGS PER SHARE EARNINGS PER SHARE (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE The following tables set forth the computation of basic and diluted EPS for the periods indicated: Three Months Ended June 30, 2023 Income Shares Per Share ( Millions, except per share amounts ) Basic EPS Net income available for common stock $ 468 448.3 $ 1.04 Diluted EPS Effect of dilutive securities — 0.7 Net income available for common stock and common stock equivalents $ 468 449.0 $ 1.04 Three Months Ended June 30, 2022 Income Shares Per Share ( Millions, except per share amounts ) Basic EPS Net income available for common stock $ 414 447.5 $ 0.93 Diluted EPS Effect of dilutive securities — 0.7 Net income available for common stock and common stock equivalents $ 414 448.2 $ 0.92 Six Months Ended June 30, 2023 Income Shares Per Share ( Millions, except per share amounts ) Basic EPS Net income available for common stock $ 1,517 448.2 $ 3.38 Diluted EPS Effect of dilutive securities — 0.8 Net income available for common stock and common stock equivalents $ 1,517 449.0 $ 3.38 Six Months Ended June 30, 2022 Income Shares Per Share ( Millions, except per share amounts ) Basic EPS Net income available for common stock $ 805 447.3 $ 1.80 Diluted EPS Effect of dilutive securities — 1.0 Net income available for common stock and common stock equivalents $ 805 448.3 $ 1.80 |
UNCONSOLIDATED AFFILIATES (Note
UNCONSOLIDATED AFFILIATES (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
UNCONSOLIDATED AFFILIATES | UNCONSOLIDATED AFFILIATES Equity in Net Earnings from Investments - The following table sets forth our equity in net earnings from investments for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 ( Millions of dollars ) Northern Border $ 14 $ 16 $ 38 $ 36 Overland Pass 13 8 22 13 Roadrunner 15 9 22 18 Other 1 3 1 5 Equity in net earnings from investments $ 43 $ 36 $ 83 $ 72 We incurred expenses in transactions with unconsolidated affiliates of $27 million and $15 million for the three months ended June 30, 2023 and 2022, respectively, and $55 million and $30 million for the six months ended June 30, 2023 and 2022, respectively, related primarily to Overland Pass and Northern Border. Revenue earned and accounts receivable from, and accounts payable to, our equity-method investees were not material. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Environmental Matters and Pipeline Safety - The operation of pipelines, plants and other facilities for the gathering, processing, fractionation, transportation and storage of natural gas, NGLs, condensate and other products is subject to numerous and complex laws and regulations pertaining to health, safety and the environment. As an owner and/or operator of these facilities, we must comply with laws and regulations that relate to air and water quality, hazardous and solid waste management and disposal, cultural resource protection and other environmental and safety matters. The cost of planning, designing, constructing and operating pipelines, plants and other facilities must incorporate compliance with these laws, regulations and safety standards. Failure to comply with these laws and regulations may trigger a variety of administrative, civil and potentially criminal enforcement measures, including citizen suits, which can include the assessment of monetary penalties, the imposition of remedial requirements and the issuance of injunctions or restrictions on operation or construction. Management does not believe that, based on currently known information, a material risk of noncompliance with these laws and regulations exists that will affect adversely our consolidated results of operations, financial condition or cash flows. Legal Proceedings - We are a party to various legal proceedings that have arisen in the normal course of our operations. While the results of these proceedings cannot be predicted with certainty, we believe the reasonably possible losses from such proceedings, individually and in the aggregate, are not material. Additionally, we believe the probable final outcome of such proceedings will not have a material adverse effect on our consolidated results of operations, financial position or cash flows. |
REVENUE REVENUE (Notes)
REVENUE REVENUE (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUES Contract Assets and Contract Liabilities - Our contract asset balances at the beginning and end of the period primarily relate to our firm service transportation contracts with tiered rates, which are not material. Our contract liabilities at the beginning and end of the period primarily represent deferred revenue on storage contracts and deferred revenue on contributions in aid of construction received from customers, which are not material. Receivables from Customers and Revenue Disaggregation - Substantially all of the balances in accounts receivable on our Consolidated Balance Sheets at June 30, 2023, and December 31, 2022, relate to customer receivables. Revenue sources are disaggregated in Note M. Unsatisfied Performance Obligations - We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) variable consideration on contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. The following table presents aggregate value allocated to unsatisfied performance obligations as of June 30, 2023, and the amounts we expect to recognize in revenue in future periods, related primarily to firm transportation and storage contracts with remaining contract terms ranging from one month to 22 years: Expected Period of Recognition in Revenue ( Millions of dollars ) Remainder of 2023 $ 226 2024 400 2025 296 2026 282 2027 and beyond 908 Total $ 2,112 The table above excludes variable consideration allocated entirely to wholly unsatisfied performance obligations, wholly unsatisfied promises to transfer distinct goods or services that are part of a single performance obligation and consideration we determine to be fully constrained. The amounts we determined to be fully constrained relate to future sales obligations under long-term sales contracts where the value is not known and minimum volume agreements, which we consider to be fully constrained until invoiced. |
SEGMENTS (Notes)
SEGMENTS (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
SEGMENTS | SEGMENTS Segment Descriptions - Our operations are divided into three reportable business segments as follows: • our Natural Gas Gathering and Processing segment gathers, treats and processes natural gas; • our Natural Gas Liquids segment gathers, treats, fractionates and transports NGLs and stores, markets and distributes purity NGLs; and • our Natural Gas Pipelines segment transports and stores natural gas. Other and eliminations consist of corporate and Merger Transaction related costs, the operating and leasing activities of our headquarters building and related parking facility, the activity of our wholly owned captive insurance company and eliminations necessary to reconcile our reportable segments to our Consolidated Financial Statements. Operating Segment Information - The following tables set forth certain selected financial information for our operating segments for the periods indicated: Three Months Ended Natural Gas Natural Gas Natural Gas Total ( Millions of dollars ) NGL and condensate sales $ 550 $ 3,120 $ — $ 3,670 Residue natural gas sales 219 — — 219 Gathering, processing and exchange services revenue 35 133 — 168 Transportation and storage revenue — 45 146 191 Other 5 2 — 7 Total revenues (c) 809 3,300 146 4,255 Cost of sales and fuel (exclusive of depreciation and operating costs) (385) (2,627) (1) (3,013) Operating costs (115) (161) (49) (325) Equity in net earnings from investments 1 13 29 43 Noncash compensation expense and other 4 5 1 10 Segment adjusted EBITDA $ 314 $ 530 $ 126 $ 970 Depreciation and amortization $ (67) $ (85) $ (16) $ (168) Capital expenditures $ 84 $ 169 $ 39 $ 292 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $696 million, of which $640 million related to revenues within the segment, cost of sales and fuel of $203 million and operating costs of $93 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $103 million, cost of sales and fuel of $8 million and operating costs of $41 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for our Natural Gas Gathering and Processing segment totaled $521 million. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material. Three Months Ended Total Other and Total ( Millions of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 3,670 $ (521) $ 3,149 Residue natural gas sales 219 — 219 Gathering, processing and exchange services revenue 168 — 168 Transportation and storage revenue 191 (2) 189 Other 7 — 7 Total revenues (a) $ 4,255 $ (523) $ 3,732 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (3,013) $ 531 $ (2,482) Operating costs $ (325) $ (18) $ (343) Depreciation and amortization $ (168) $ (2) $ (170) Equity in net earnings from investments $ 43 $ — $ 43 Capital expenditures $ 292 $ 13 $ 305 (a) - Noncustomer revenue for the three months ended June 30, 2023, totaled $102 million related primarily to gains from derivatives on commodity contracts. Three Months Ended Natural Gas Natural Gas Natural Gas Total ( Millions of dollars ) NGL and condensate sales $ 1,039 $ 5,010 $ — $ 6,049 Residue natural gas sales 660 — 1 661 Gathering, processing and exchange services revenue 37 140 — 177 Transportation and storage revenue — 40 130 170 Other 4 3 1 8 Total revenues (c) 1,740 5,193 132 7,065 Cost of sales and fuel (exclusive of depreciation and operating costs) (1,398) (4,543) (1) (5,942) Operating costs (97) (143) (41) (281) Equity in net earnings from investments 1 9 26 36 Noncash compensation expense and other 6 1 — 7 Segment adjusted EBITDA $ 252 $ 517 $ 116 $ 885 Depreciation and amortization $ (65) $ (75) $ (16) $ (156) Capital expenditures $ 124 $ 150 $ 19 $ 293 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $617 million, of which $568 million related to revenues within the segment, cost of sales and fuel of $152 million and operating costs of $82 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $101 million, cost of sales and fuel of $7 million and operating costs of $36 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for our Natural Gas Gathering and Processing segment totaled $1.1 billion. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material. Three Months Ended Total Other and Total ( Millions of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 6,049 $ (1,062) $ 4,987 Residue natural gas sales 661 — 661 Gathering, processing and exchange services revenue 177 — 177 Transportation and storage revenue 170 (2) 168 Other 8 (5) 3 Total revenues (a) $ 7,065 $ (1,069) $ 5,996 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (5,942) $ 1,064 $ (4,878) Operating costs $ (281) $ 4 $ (277) Depreciation and amortization $ (156) $ (2) $ (158) Equity in net earnings from investments $ 36 $ — $ 36 Capital expenditures $ 293 $ 9 $ 302 (a) - Noncustomer revenue for the three months ended June 30, 2022, totaled $(133) million related primarily to losses from derivatives on commodity contracts. Six Months Ended Natural Gas Natural Gas Natural Gas Total ( Millions of dollars ) NGL and condensate sales $ 1,194 $ 6,671 $ — $ 7,865 Residue natural gas sales 787 — 25 812 Gathering, processing and exchange services revenue 73 264 — 337 Transportation and storage revenue — 95 291 386 Other 13 5 1 19 Total revenues (c) 2,067 7,035 317 9,419 Cost of sales and fuel (exclusive of depreciation and operating costs) (1,260) (5,722) (15) (6,997) Operating costs (220) (313) (94) (627) Equity in net earnings from investments 1 22 60 83 Noncash compensation expense 8 13 3 24 Other 1 776 — 777 Segment adjusted EBITDA $ 597 $ 1,811 $ 271 $ 2,679 Depreciation and amortization $ (134) $ (163) $ (33) $ (330) Investments in unconsolidated affiliates $ 27 $ 414 $ 443 $ 884 Total assets $ 6,854 $ 14,346 $ 2,384 $ 23,584 Capital expenditures $ 182 $ 306 $ 85 $ 573 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $1.3 billion, of which $1.2 billion related to revenues within the segment, cost of sales and fuel of $387 million and operating costs of $180 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $219 million, cost of sales and fuel of $23 million and operating costs of $79 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for our Natural Gas Gathering and Processing segment totaled $1.2 billion. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material. Six Months Ended Total Other and Total ( Millions of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 7,865 $ (1,155) $ 6,710 Residue natural gas sales 812 — 812 Gathering, processing and exchange services revenue 337 — 337 Transportation and storage revenue 386 (4) 382 Other 19 (7) 12 Total revenues (a) $ 9,419 $ (1,166) $ 8,253 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (6,997) $ 1,168 $ (5,829) Operating costs $ (627) $ (12) $ (639) Depreciation and amortization $ (330) $ (2) $ (332) Equity in net earnings from investments $ 83 $ — $ 83 Investments in unconsolidated affiliates $ 884 $ 1 $ 885 Total assets $ 23,584 $ 454 $ 24,038 Capital expenditures $ 573 $ 21 $ 594 (a) - Noncustomer revenue for the six months ended June 30, 2023, totaled $142 million related primarily to gains from derivatives on commodity contracts. Six Months Ended Natural Gas Natural Gas Natural Gas Total ( Millions of dollars ) NGL and condensate sales $ 2,043 $ 9,559 $ — $ 11,602 Residue natural gas sales 1,211 — 27 1,238 Gathering, processing and exchange services revenue 68 276 — 344 Transportation and storage revenue — 87 253 340 Other 10 5 1 16 Total revenues (c) 3,332 9,927 281 13,540 Cost of sales and fuel (exclusive of depreciation and operating costs) (2,687) (8,632) (18) (11,337) Operating costs (191) (272) (82) (545) Equity in net earnings from investments 3 14 55 72 Noncash compensation expense and other 10 8 4 22 Segment adjusted EBITDA $ 467 $ 1,045 $ 240 $ 1,752 Depreciation and amortization $ (128) $ (150) $ (31) $ (309) Investments in unconsolidated affiliates $ 28 $ 415 $ 358 $ 801 Total assets $ 7,085 $ 15,183 $ 2,176 $ 24,444 Capital expenditures $ 217 $ 276 $ 42 $ 535 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $1.2 billion, of which $1.1 billion related to revenues within the segment, cost of sales and fuel of $298 million and operating costs of $157 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $227 million, cost of sales and fuel of $28 million and operating costs of $71 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for our Natural Gas Gathering and Processing segment totaled $2.1 billion. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material. Six Months Ended Total Other and Total ( Millions of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 11,602 $ (2,090) $ 9,512 Residue natural gas sales 1,238 — 1,238 Gathering, processing and exchange services revenue 344 — 344 Transportation and storage revenue 340 (4) 336 Other 16 (5) 11 Total revenues (a) $ 13,540 $ (2,099) $ 11,441 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (11,337) $ 2,093 $ (9,244) Operating costs $ (545) $ 4 $ (541) Depreciation and amortization $ (309) $ (3) $ (312) Equity in net earnings from investments $ 72 $ — $ 72 Investments in unconsolidated affiliates $ 801 $ — $ 801 Total assets $ 24,444 $ 83 $ 24,527 Capital expenditures $ 535 $ 24 $ 559 (a) - Noncustomer revenue for the six months ended June 30, 2022, totaled $(307) million related primarily to losses from derivatives on commodity contracts. Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 ( Millions of dollars ) Reconciliation of net income to total segment adjusted EBITDA Net income $ 468 $ 414 $ 1,517 $ 805 Add: Interest expense, net of capitalized interest 180 171 346 343 Depreciation and amortization 170 158 332 312 Income taxes 145 131 475 253 Noncash compensation expense and other 8 12 18 37 Other corporate costs (1) (1) (9) 2 Total segment adjusted EBITDA (a) $ 970 $ 885 $ 2,679 $ 1,752 (a) - The six months ended June 30, 2023 includes $702 million related to the Medford incident, including a settlement gain of $779 million, offset partially by $77 million of third-party fractionation costs. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Our accompanying unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC. These statements have been prepared in accordance with GAAP and reflect all adjustments that, in our opinion, are necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. The 2022 year-end Consolidated Balance Sheet data was derived from our audited Consolidated Financial Statements but does not include all disclosures required by GAAP. These unaudited Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements in our Annual Report. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards Update - Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of ASUs to the FASB Accounting Standards Codification. We consider the applicability and impact of all ASUs. ASUs not discussed herein or in our Annual Report were assessed and determined to be either not applicable or clarifications of ASUs previously issued. There have been no new accounting pronouncements that have become effective or have been issued that are of significance or potential significance to us. |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Accounting Policy [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Determining Fair Value - For our fair value measurements, we utilize market prices, third-party pricing services, present value methods and standard option valuation models to determine the price we would receive from the sale of an asset or the transfer of a liability in an orderly transaction at the measurement date. We measure the fair value of a group of financial assets and liabilities consistent with how a market participant would price the net risk exposure at the measurement date. Determining the appropriate classification of our fair value measurements within the fair value hierarchy requires management’s judgment regarding the degree to which market data is observable or corroborated by observable market data. We categorize derivatives based on the lowest level input that is significant to the fair value measurement in its entirety. Our valuation techniques and inputs are consistent with those discussed in Note A of the Notes to Consolidated Financial Statements in our Annual Report. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The following tables set forth our recurring fair value measurements as of the dates indicated: June 30, 2023 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net ( Millions of dollars ) Derivative assets Commodity contracts $ 36 $ 169 $ — $ 205 $ (165) $ 40 Interest-rate contracts — 17 — 17 — 17 Total derivative assets $ 36 $ 186 $ — $ 222 $ (165) $ 57 Derivative liabilities Commodity contracts $ (16) $ (111) $ — $ (127) $ 127 $ — Interest-rate contracts — (4) — (4) — (4) Total derivative liabilities $ (16) $ (115) $ — $ (131) $ 127 $ (4) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At June 30, 2023, we posted no cash and held cash of $38 million from various counterparties, which offsets our derivative net asset position under master netting arrangements as shown in the table above. December 31, 2022 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (Millions of dollars) Derivative assets Commodity contracts $ 15 $ 152 $ — $ 167 $ (125) $ 42 Interest-rate contracts — 11 — 11 — 11 Total derivative assets $ 15 $ 163 $ — $ 178 $ (125) $ 53 Derivative liabilities Commodity contracts $ (38) $ (87) $ — $ (125) $ 125 $ — Total derivative liabilities $ (38) $ (87) $ — $ (125) $ 125 $ — (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At December 31, 2022, we held no cash and posted $9 million of cash with various counterparties, which is included in other current assets in our Consolidated Balance Sheet. |
Reconciliation of Level 3 Fair Value Measurements | The following table sets forth a reconciliation of our Level 3 fair value measurements for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, Derivative Assets (Liabilities) 2023 2022 2023 2022 ( Millions of dollars ) Net liabilities at beginning of period $ — $ (190) $ — $ (114) Total changes in fair value: Settlements included in net income (a) — 57 — 60 New Level 3 derivatives included in other comprehensive income (b) — 9 — 9 Unrealized change included in other comprehensive income (b) — 14 — (65) Net liabilities at end of period $ — $ (110) $ — $ (110) (a) - Included in commodity sales revenues/cost of sales and fuel in our Consolidated Statements of Income. |
RISK MANAGEMENT AND HEDGING A_2
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivatives | The following table sets forth the fair values of our derivative instruments presented on a gross basis as of the dates indicated: June 30, 2023 December 31, 2022 Location in our Assets (Liabilities) Assets (Liabilities) Derivatives designated as hedging instruments ( Millions of dollars ) Commodity contracts (a) Other current assets $ 205 $ (127) $ 160 $ (123) Other assets — — 6 (1) Interest-rate contracts Other current assets/liabilities 17 (4) 11 — Total derivatives designated as hedging instruments 222 (131) 177 (124) Derivatives not designated as hedging instruments Commodity contracts (a) Other current assets — — 1 (1) Total derivatives not designated as hedging instruments — — 1 (1) Total derivatives $ 222 $ (131) $ 178 $ (125) |
Notional Amounts of Derivative Instruments | The following table sets forth the notional quantities for derivative instruments held as of the dates indicated: June 30, December 31 Contract Net Purchased/Payor Derivatives designated as hedging instruments: Cash flow hedges Fixed price - Natural gas ( Bcf ) Futures (20.2) (39.3) - Crude oil and NGLs ( MMBbl ) Futures (12.9) (8.4) Basis - Natural gas ( Bcf ) Futures (18.2) (39.3) Interest-rate contracts ( Billions of dollars ) Swaps $ 0.4 $ 0.4 Interest-rate contracts ( Billions of dollars ) Treasury locks $ 1.1 $ — Derivatives not designated as hedging instruments: Fixed price - Natural gas ( Bcf ) Futures — (0.1) - Crude oil and NGLs ( MMBbl ) Futures — 0.1 Basis - Natural gas ( Bcf ) Futures — (0.1) |
Schedule of Cash Flow Hedging Instruments Effect on Comprehensive Income (Loss) | The following table sets forth the unrealized change in fair value of cash flow hedges in other comprehensive income (loss) for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Commodity contracts $ 54 $ (34) $ 94 $ (208) Interest-rate contracts 12 63 2 144 Total unrealized change in fair value of cash flow hedges in other comprehensive income (loss) $ 66 $ 29 $ 96 $ (64) |
Schedule of Cash Flow Hedging Instruments Effect on Income (Loss) | The following table sets forth the effect of cash flow hedges on net income for the periods indicated: Derivatives in Cash Flow Location of Gain (Loss) Reclassified from Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Millions of dollars ) Commodity contracts Commodity sales revenues $ 95 $ (257) $ 118 $ (468) Cost of sales and fuel (57) 176 (60) 310 Interest-rate contracts Interest expense (6) (10) (11) (19) Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives $ 32 $ (91) $ 47 $ (177) |
DEBT DEBT (Tables)
DEBT DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Instrument [Line Items] | |
Debt [Table Text Block] | The following table sets forth our consolidated debt as of the dates indicated: June 30, December 31, ( Millions of dollars ) Commercial paper outstanding (a) $ — $ — Senior unsecured obligations: $425 at 5.0% due September 2023 — 425 $500 at 7.5% due September 2023 — 500 $500 at 2.75% due September 2024 500 500 $500 at 4.9% due March 2025 500 500 $400 at 2.2% due September 2025 387 387 $600 at 5.85% due January 2026 600 600 $500 at 4.0% due July 2027 500 500 $800 at 4.55% due July 2028 800 800 $100 at 6.875% due September 2028 100 100 $700 at 4.35% due March 2029 700 700 $750 at 3.4% due September 2029 714 714 $850 at 3.1% due March 2030 780 780 $600 at 6.35% due January 2031 600 600 $750 at 6.1% due November 2032 750 750 $400 at 6.00% due June 2035 400 400 $600 at 6.65% due October 2036 600 600 $600 at 6.85% due October 2037 600 600 $650 at 6.125% due February 2041 650 650 $400 at 6.2% due September 2043 400 400 $700 at 4.95% due July 2047 689 689 $1,000 at 5.2% due July 2048 1,000 1,000 $750 at 4.45% due September 2049 653 673 $500 at 4.5% due March 2050 443 443 $300 at 7.15% due January 2051 300 300 Guardian $120 term loan, rate of 6.33% as of June 30, 2023, due June 2025 120 120 Viking $60 term loan, rate of 6.46% as of June 30, 2023, due March 2026 60 — Total debt 12,846 13,731 Unamortized portion of terminated swaps 9 10 Unamortized debt issuance costs and discounts (113) (120) Current maturities of long-term debt — (925) Long-term debt $ 12,742 $ 12,696 (a) - Individual issuances of commercial paper under our commercial paper program generally mature in 90 days or less. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Loss | The following table sets forth the balance in accumulated other comprehensive loss for the period indicated, net of tax: Risk- Retirement and Risk- Accumulated ( Millions of dollars ) January 1, 2023 $ (58) $ (55) $ 5 $ (108) Other comprehensive income (loss) before reclassifications 74 — (1) 73 Amounts reclassified to net income (b) (37) 1 (4) (40) Other comprehensive income (loss) 37 1 (5) 33 June 30, 2023 $ (21) $ (54) $ — $ (75) (a) - Includes amounts related to supplemental executive retirement plan. (b) - See Note E for details of amounts reclassified to net income for risk-management assets/liabilities. |
Schedule of Accumulated Other Comprehensive Loss for Risk-Management Assets/Liabilities [Table Text Block] | The following table sets forth information about the balance of accumulated other comprehensive loss at June 30, 2023, representing unrealized gains (losses) related to risk-management assets and liabilities, net of tax: Risk- (Millions of dollars ) Commodity derivative instruments expected to be realized within the next 18 months (a) $ 60 Settled interest-rate swaps to be recognized over the life of the long-term, fixed-rate debt (b) (91) Interest-rate swaps and Treasury locks with future settlement dates expected to be amortized over the life of long-term debt 10 Accumulated other comprehensive loss at June 30, 2023 $ (21) (a) - Based on commodity prices on June 30, 2023, we expect net gains of $60 million, net of tax, will be reclassified into earnings during the next 12 months. The remaining forecasted gains and losses have offsetting positions and are immaterial. (b) - We expect net losses of $18 million, net of tax, will be reclassified into earnings during the next 12 months. |
EARNINGS PER SHARE EARNINGS P_2
EARNINGS PER SHARE EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following tables set forth the computation of basic and diluted EPS for the periods indicated: Three Months Ended June 30, 2023 Income Shares Per Share ( Millions, except per share amounts ) Basic EPS Net income available for common stock $ 468 448.3 $ 1.04 Diluted EPS Effect of dilutive securities — 0.7 Net income available for common stock and common stock equivalents $ 468 449.0 $ 1.04 Three Months Ended June 30, 2022 Income Shares Per Share ( Millions, except per share amounts ) Basic EPS Net income available for common stock $ 414 447.5 $ 0.93 Diluted EPS Effect of dilutive securities — 0.7 Net income available for common stock and common stock equivalents $ 414 448.2 $ 0.92 Six Months Ended June 30, 2023 Income Shares Per Share ( Millions, except per share amounts ) Basic EPS Net income available for common stock $ 1,517 448.2 $ 3.38 Diluted EPS Effect of dilutive securities — 0.8 Net income available for common stock and common stock equivalents $ 1,517 449.0 $ 3.38 Six Months Ended June 30, 2022 Income Shares Per Share ( Millions, except per share amounts ) Basic EPS Net income available for common stock $ 805 447.3 $ 1.80 Diluted EPS Effect of dilutive securities — 1.0 Net income available for common stock and common stock equivalents $ 805 448.3 $ 1.80 |
UNCONSOLIDATED AFFILIATES (Tabl
UNCONSOLIDATED AFFILIATES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity In Net Earnings From Investments | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Equity Method Investments [Table Text Block] | The following table sets forth our equity in net earnings from investments for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 ( Millions of dollars ) Northern Border $ 14 $ 16 $ 38 $ 36 Overland Pass 13 8 22 13 Roadrunner 15 9 22 18 Other 1 3 1 5 Equity in net earnings from investments $ 43 $ 36 $ 83 $ 72 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table presents aggregate value allocated to unsatisfied performance obligations as of June 30, 2023, and the amounts we expect to recognize in revenue in future periods, related primarily to firm transportation and storage contracts with remaining contract terms ranging from one month to 22 years: Expected Period of Recognition in Revenue ( Millions of dollars ) Remainder of 2023 $ 226 2024 400 2025 296 2026 282 2027 and beyond 908 Total $ 2,112 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segments | The following tables set forth certain selected financial information for our operating segments for the periods indicated: Three Months Ended Natural Gas Natural Gas Natural Gas Total ( Millions of dollars ) NGL and condensate sales $ 550 $ 3,120 $ — $ 3,670 Residue natural gas sales 219 — — 219 Gathering, processing and exchange services revenue 35 133 — 168 Transportation and storage revenue — 45 146 191 Other 5 2 — 7 Total revenues (c) 809 3,300 146 4,255 Cost of sales and fuel (exclusive of depreciation and operating costs) (385) (2,627) (1) (3,013) Operating costs (115) (161) (49) (325) Equity in net earnings from investments 1 13 29 43 Noncash compensation expense and other 4 5 1 10 Segment adjusted EBITDA $ 314 $ 530 $ 126 $ 970 Depreciation and amortization $ (67) $ (85) $ (16) $ (168) Capital expenditures $ 84 $ 169 $ 39 $ 292 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $696 million, of which $640 million related to revenues within the segment, cost of sales and fuel of $203 million and operating costs of $93 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $103 million, cost of sales and fuel of $8 million and operating costs of $41 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for our Natural Gas Gathering and Processing segment totaled $521 million. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material. Three Months Ended Total Other and Total ( Millions of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 3,670 $ (521) $ 3,149 Residue natural gas sales 219 — 219 Gathering, processing and exchange services revenue 168 — 168 Transportation and storage revenue 191 (2) 189 Other 7 — 7 Total revenues (a) $ 4,255 $ (523) $ 3,732 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (3,013) $ 531 $ (2,482) Operating costs $ (325) $ (18) $ (343) Depreciation and amortization $ (168) $ (2) $ (170) Equity in net earnings from investments $ 43 $ — $ 43 Capital expenditures $ 292 $ 13 $ 305 (a) - Noncustomer revenue for the three months ended June 30, 2023, totaled $102 million related primarily to gains from derivatives on commodity contracts. Three Months Ended Natural Gas Natural Gas Natural Gas Total ( Millions of dollars ) NGL and condensate sales $ 1,039 $ 5,010 $ — $ 6,049 Residue natural gas sales 660 — 1 661 Gathering, processing and exchange services revenue 37 140 — 177 Transportation and storage revenue — 40 130 170 Other 4 3 1 8 Total revenues (c) 1,740 5,193 132 7,065 Cost of sales and fuel (exclusive of depreciation and operating costs) (1,398) (4,543) (1) (5,942) Operating costs (97) (143) (41) (281) Equity in net earnings from investments 1 9 26 36 Noncash compensation expense and other 6 1 — 7 Segment adjusted EBITDA $ 252 $ 517 $ 116 $ 885 Depreciation and amortization $ (65) $ (75) $ (16) $ (156) Capital expenditures $ 124 $ 150 $ 19 $ 293 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $617 million, of which $568 million related to revenues within the segment, cost of sales and fuel of $152 million and operating costs of $82 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $101 million, cost of sales and fuel of $7 million and operating costs of $36 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for our Natural Gas Gathering and Processing segment totaled $1.1 billion. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material. Three Months Ended Total Other and Total ( Millions of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 6,049 $ (1,062) $ 4,987 Residue natural gas sales 661 — 661 Gathering, processing and exchange services revenue 177 — 177 Transportation and storage revenue 170 (2) 168 Other 8 (5) 3 Total revenues (a) $ 7,065 $ (1,069) $ 5,996 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (5,942) $ 1,064 $ (4,878) Operating costs $ (281) $ 4 $ (277) Depreciation and amortization $ (156) $ (2) $ (158) Equity in net earnings from investments $ 36 $ — $ 36 Capital expenditures $ 293 $ 9 $ 302 (a) - Noncustomer revenue for the three months ended June 30, 2022, totaled $(133) million related primarily to losses from derivatives on commodity contracts. Six Months Ended Natural Gas Natural Gas Natural Gas Total ( Millions of dollars ) NGL and condensate sales $ 1,194 $ 6,671 $ — $ 7,865 Residue natural gas sales 787 — 25 812 Gathering, processing and exchange services revenue 73 264 — 337 Transportation and storage revenue — 95 291 386 Other 13 5 1 19 Total revenues (c) 2,067 7,035 317 9,419 Cost of sales and fuel (exclusive of depreciation and operating costs) (1,260) (5,722) (15) (6,997) Operating costs (220) (313) (94) (627) Equity in net earnings from investments 1 22 60 83 Noncash compensation expense 8 13 3 24 Other 1 776 — 777 Segment adjusted EBITDA $ 597 $ 1,811 $ 271 $ 2,679 Depreciation and amortization $ (134) $ (163) $ (33) $ (330) Investments in unconsolidated affiliates $ 27 $ 414 $ 443 $ 884 Total assets $ 6,854 $ 14,346 $ 2,384 $ 23,584 Capital expenditures $ 182 $ 306 $ 85 $ 573 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $1.3 billion, of which $1.2 billion related to revenues within the segment, cost of sales and fuel of $387 million and operating costs of $180 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $219 million, cost of sales and fuel of $23 million and operating costs of $79 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for our Natural Gas Gathering and Processing segment totaled $1.2 billion. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material. Six Months Ended Total Other and Total ( Millions of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 7,865 $ (1,155) $ 6,710 Residue natural gas sales 812 — 812 Gathering, processing and exchange services revenue 337 — 337 Transportation and storage revenue 386 (4) 382 Other 19 (7) 12 Total revenues (a) $ 9,419 $ (1,166) $ 8,253 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (6,997) $ 1,168 $ (5,829) Operating costs $ (627) $ (12) $ (639) Depreciation and amortization $ (330) $ (2) $ (332) Equity in net earnings from investments $ 83 $ — $ 83 Investments in unconsolidated affiliates $ 884 $ 1 $ 885 Total assets $ 23,584 $ 454 $ 24,038 Capital expenditures $ 573 $ 21 $ 594 (a) - Noncustomer revenue for the six months ended June 30, 2023, totaled $142 million related primarily to gains from derivatives on commodity contracts. Six Months Ended Natural Gas Natural Gas Natural Gas Total ( Millions of dollars ) NGL and condensate sales $ 2,043 $ 9,559 $ — $ 11,602 Residue natural gas sales 1,211 — 27 1,238 Gathering, processing and exchange services revenue 68 276 — 344 Transportation and storage revenue — 87 253 340 Other 10 5 1 16 Total revenues (c) 3,332 9,927 281 13,540 Cost of sales and fuel (exclusive of depreciation and operating costs) (2,687) (8,632) (18) (11,337) Operating costs (191) (272) (82) (545) Equity in net earnings from investments 3 14 55 72 Noncash compensation expense and other 10 8 4 22 Segment adjusted EBITDA $ 467 $ 1,045 $ 240 $ 1,752 Depreciation and amortization $ (128) $ (150) $ (31) $ (309) Investments in unconsolidated affiliates $ 28 $ 415 $ 358 $ 801 Total assets $ 7,085 $ 15,183 $ 2,176 $ 24,444 Capital expenditures $ 217 $ 276 $ 42 $ 535 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $1.2 billion, of which $1.1 billion related to revenues within the segment, cost of sales and fuel of $298 million and operating costs of $157 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $227 million, cost of sales and fuel of $28 million and operating costs of $71 million. (c) - Intersegment revenues are primarily commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly, and for our Natural Gas Gathering and Processing segment totaled $2.1 billion. Intersegment revenues for our Natural Gas Liquids and Natural Gas Pipelines segments were not material. Six Months Ended Total Other and Total ( Millions of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 11,602 $ (2,090) $ 9,512 Residue natural gas sales 1,238 — 1,238 Gathering, processing and exchange services revenue 344 — 344 Transportation and storage revenue 340 (4) 336 Other 16 (5) 11 Total revenues (a) $ 13,540 $ (2,099) $ 11,441 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (11,337) $ 2,093 $ (9,244) Operating costs $ (545) $ 4 $ (541) Depreciation and amortization $ (309) $ (3) $ (312) Equity in net earnings from investments $ 72 $ — $ 72 Investments in unconsolidated affiliates $ 801 $ — $ 801 Total assets $ 24,444 $ 83 $ 24,527 Capital expenditures $ 535 $ 24 $ 559 (a) - Noncustomer revenue for the six months ended June 30, 2022, totaled $(307) million related primarily to losses from derivatives on commodity contracts. Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 ( Millions of dollars ) Reconciliation of net income to total segment adjusted EBITDA Net income $ 468 $ 414 $ 1,517 $ 805 Add: Interest expense, net of capitalized interest 180 171 346 343 Depreciation and amortization 170 158 332 312 Income taxes 145 131 475 253 Noncash compensation expense and other 8 12 18 37 Other corporate costs (1) (1) (9) 2 Total segment adjusted EBITDA (a) $ 970 $ 885 $ 2,679 $ 1,752 (a) - The six months ended June 30, 2023 includes $702 million related to the Medford incident, including a settlement gain of $779 million, offset partially by $77 million of third-party fractionation costs. |
ACQUISITION OF MAGELLAN (Detail
ACQUISITION OF MAGELLAN (Details) $ / shares in Units, $ in Millions | Jun. 30, 2023 USD ($) $ / shares |
Business Acquisition | |
Bridge facility commitment letter | $ 5,250 |
Magellan Midstream Partners, L.P. | |
Business Acquisition | |
Merger agreement, termination reimbursement expense | 125 |
Merger agreement, termination fee | 275 |
ONEOK, Inc. | |
Business Acquisition | |
Merger agreement, termination reimbursement expense | 75 |
Merger agreement, termination fee | $ 450 |
ONEOK, Inc. | Magellan Midstream Partners, L.P. | |
Business Acquisition | |
Merger share exchange ratio | 0.667 |
Merger cash consideration | $ / shares | $ 25 |
MEDFORD INCIDENT (Details)
MEDFORD INCIDENT (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Interruption Loss [Line Items] | ||||
Medford settlement gain | $ 779 | $ 0 | ||
Medford Incident | Total Receivables 2022 | ||||
Business Interruption Loss [Line Items] | ||||
Loss Contingency, Insurance Receivable | $ 151 | |||
Medford Incident | Insurance Recoveries | ||||
Business Interruption Loss [Line Items] | ||||
Insurance Proceeds | $ 930 | |||
Medford Incident | Insurance Recoveries in 2022 | ||||
Business Interruption Loss [Line Items] | ||||
Unusual or Infrequent Item, or Both, Insurance Proceeds | 100 | |||
Medford Incident | Business Interruption - Settlement Proceeds Received in 2023 | ||||
Business Interruption Loss [Line Items] | ||||
Insurance Proceeds 2023 | 830 | |||
Medford Incident | Business Interruption - Settlement Proceeds | ||||
Business Interruption Loss [Line Items] | ||||
Outstanding insurance receivable | $ 51 | |||
Medford settlement gain | $ 779 | $ 779 |
FAIR VALUE MEASUREMENTS - Part
FAIR VALUE MEASUREMENTS - Part 1 (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash held - offsetting derivative net asset positions under master-netting arrangements | $ (38) | $ 0 |
Cash posted - total | 0 | 9 |
Long-term debt, fair value | 11,900 | 12,700 |
Long-term debt | 12,700 | 13,600 |
Fair Value, Recurring [Member] | Gross Fair Value Measurement [Member] | ||
Derivative assets | ||
Derivative asset, fair value, gross | 222 | 178 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (131) | (125) |
Fair Value, Recurring [Member] | Gross Fair Value Measurement [Member] | Financial Contracts | ||
Derivative assets | ||
Derivative asset, fair value, gross | 205 | 167 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (127) | (125) |
Fair Value, Recurring [Member] | Gross Fair Value Measurement [Member] | Interest rate contracts | ||
Derivative assets | ||
Interest-rate contracts | 17 | 11 |
Derivative liabilities | ||
Interest-rate contracts | (4) | |
Fair Value, Recurring [Member] | ||
Derivative assets | ||
Derivative assets | 57 | 53 |
Derivative assets netting | (165) | (125) |
Derivative liabilities | ||
Derivative liabilities | (4) | 0 |
Derivative liabilities netting | 127 | 125 |
Fair Value, Recurring [Member] | Financial Contracts | ||
Derivative assets | ||
Derivative assets | 40 | 42 |
Derivative assets netting | (165) | (125) |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Derivative liabilities netting | 127 | 125 |
Fair Value, Recurring [Member] | Interest rate contracts | ||
Derivative assets | ||
Interest-rate contracts | 17 | 11 |
Derivative assets netting | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities netting | 0 | |
Interest-rate contracts | (4) | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Derivative assets | ||
Derivative asset, fair value, gross | 36 | 15 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (16) | (38) |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Financial Contracts | ||
Derivative assets | ||
Derivative asset, fair value, gross | 36 | 15 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (16) | (38) |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest rate contracts | ||
Derivative assets | ||
Interest-rate contracts | 0 | 0 |
Derivative liabilities | ||
Interest-rate contracts | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative assets | ||
Derivative asset, fair value, gross | 186 | 163 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (115) | (87) |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Financial Contracts | ||
Derivative assets | ||
Derivative asset, fair value, gross | 169 | 152 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (111) | (87) |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate contracts | ||
Derivative assets | ||
Interest-rate contracts | 17 | 11 |
Derivative liabilities | ||
Interest-rate contracts | (4) | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Derivative assets | ||
Derivative asset, fair value, gross | 0 | 0 |
Derivative liabilities | ||
Derivative liability, fair value, gross | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Financial Contracts | ||
Derivative assets | ||
Derivative asset, fair value, gross | 0 | 0 |
Derivative liabilities | ||
Derivative liability, fair value, gross | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest rate contracts | ||
Derivative assets | ||
Interest-rate contracts | 0 | $ 0 |
Derivative liabilities | ||
Interest-rate contracts | $ 0 |
FAIR VALUE MEASUREMENTS - Par_2
FAIR VALUE MEASUREMENTS - Part 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets And Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Net liabilities at beginning of period | $ 0 | $ (190) | $ 0 | $ (114) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements | 0 | 57 | 0 | 60 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, New Level 3 Derivatives | 0 | 9 | 0 | 9 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Unrealized Change Included in other comprehensive income | 0 | 14 | 0 | (65) |
Net liabilities at end of period | $ 0 | $ (110) | $ 0 | $ (110) |
RISK MANAGEMENT AND HEDGING A_3
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES Part 1 (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Derivative, Fair Value [Line Items] | ||
Assets | $ 222 | $ 178 |
(Liabilities) | (131) | (125) |
Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 222 | 177 |
(Liabilities) | (131) | (124) |
Derivatives not designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 0 | 1 |
(Liabilities) | 0 | (1) |
Interest rate contracts | Derivatives designated as hedging instruments | Purchased/ Payor | ||
Derivative, Fair Value [Line Items] | ||
Derivative, Notional Amount | 400 | 400 |
Treasury Lock | Derivatives designated as hedging instruments | Purchased/ Payor | ||
Derivative, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,100 | 0 |
Other Current Assets [Member] | Commodity Contracts | Financial contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 205 | 160 |
(Liabilities) | (127) | (123) |
Other Current Assets [Member] | Commodity Contracts | Financial contracts | Derivatives not designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 0 | 1 |
(Liabilities) | 0 | (1) |
Other Current Assets [Member] | Interest rate contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 17 | 11 |
(Liabilities) | 0 | |
Other Current Liabilities [Member] | Interest rate contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | (4) | |
Other Assets | Commodity Contracts | Financial contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 0 | 6 |
(Liabilities) | 0 | (1) |
Interest rate contracts | Cash Flow Hedging [Member] | Forward contracts | Forecasted Debt Issuances [Member] | ||
Derivative, Fair Value [Line Items] | ||
Derivative, Notional Amount | 400 | $ 400 |
Treasury Lock | Cash Flow Hedging [Member] | Forward contracts | Forecasted Debt Issuances [Member] | ||
Derivative, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,100 | |
Derivative Notional Amount New Contracts | $ 1,100 |
RISK MANAGEMENT AND HEDGING A_4
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES, Part 2 (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) Bcf MMBbls | Dec. 31, 2022 USD ($) Bcf MMBbls | |
Derivatives designated as Hedging Instrument | Interest Rate Contracts | Purchased/ Payor | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 400 | $ 400 |
Derivatives designated as Hedging Instrument | Future | Natural gas (Bcf) | Fixed price | Sold/ Receiver | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 20.2 | 39.3 |
Derivatives designated as Hedging Instrument | Future | Natural gas (Bcf) | Basis | Sold/ Receiver | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 18.2 | 39.3 |
Derivatives designated as Hedging Instrument | Future | Crude oil and NGLs (MMBbl) | Fixed price | Sold/ Receiver | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | MMBbls | 12.9 | 8.4 |
Derivatives designated as Hedging Instrument | Treasury Lock | Purchased/ Payor | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 1,100 | $ 0 |
Derivatives not designated as hedging instruments | Future | Natural gas (Bcf) | Fixed price | Sold/ Receiver | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 0 | 0.1 |
Derivatives not designated as hedging instruments | Future | Natural gas (Bcf) | Basis | Sold/ Receiver | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 0 | 0.1 |
Derivatives not designated as hedging instruments | Future | Crude oil and NGLs (MMBbl) | Fixed price | Purchased/ Payor | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | MMBbls | 0 | 0.1 |
Forecasted Debt Issuances [Member] | Cash Flow Hedging [Member] | Forward contracts | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 400 | $ 400 |
Forecasted Debt Issuances [Member] | Cash Flow Hedging [Member] | Forward contracts | Treasury Lock | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,100 | |
Derivative Notional Amount New Contracts | $ 1,100 |
RISK MANAGEMENT AND HEDGING A_5
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES Part 3 (Details) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized change in fair value of cash flow hedges in other comprehensive income (loss) | $ 66 | $ 29 | $ 96 | $ (64) |
Change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives | 32 | (91) | 47 | (177) |
Commodity Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized change in fair value of cash flow hedges in other comprehensive income (loss) | 54 | (34) | 94 | (208) |
Commodity Contracts | Commodity sales revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives | 95 | (257) | 118 | (468) |
Commodity Contracts | Cost of sales and fuel | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives | (57) | 176 | (60) | 310 |
Interest Rate Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized change in fair value of cash flow hedges in other comprehensive income (loss) | 12 | 63 | 2 | 144 |
Interest Rate Contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives | $ (6) | $ (10) | $ (11) | $ (19) |
DEBT DEBT (Details)
DEBT DEBT (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 USD ($) Rate | Jun. 30, 2023 USD ($) Rate | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Total debt | $ 12,846 | $ 12,846 | $ 13,731 |
Unamortized portion of terminated swaps | 9 | 9 | 10 |
Unamortized debt issuance costs and discounts | (113) | (113) | (120) |
Current maturities of long-term debt | 0 | 0 | (925) |
Long-term debt | 12,742 | 12,742 | 12,696 |
$2.5 Billion Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500 | $ 2,500 | |
Debt Instrument, Covenant Description | Among other things, these covenants include maintaining a ratio of consolidated net indebtedness to adjusted EBITDA (EBITDA, as defined in our $2.5 Billion Credit Agreement, adjusted for all noncash charges and increased for projected EBITDA from certain lender-approved capital expansion projects). In May 2023, we entered into an amendment to our $2.5 Billion Credit Agreement, which, among other things, provided for certain amendments to the definition of consolidated net total debt, as defined within the $2.5 Billion Credit Agreement. Under our $2.5 Billion Credit Agreement, if the Merger Transaction closes, our leverage ratio covenant increases to 5.5 to 1 for the quarter the Merger Transaction closes and the two following quarters. Thereafter, the covenant will decrease to 5.0 to 1. | ||
Indebtedness To Adjusted EBITDA Maximum From Acquisitions | 5.5 | 5.5 | |
Indebtedness To Adjusted EBITDA Maximum | 5 | 5 | |
Line of Credit Facility, Amount Outstanding | $ 0 | $ 0 | |
Indebtedness To Adjusted EBITDA Current | 2.8 | 2.8 | |
Viking Term Loan Agreement | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Covenant Description | In March 2023, Viking entered into a $60 million senior unsecured Term Loan Agreement, which was fully drawn as of June 30, 2023. The proceeds were used to repay intercompany debt with ONEOK and for general corporate purposes. The Viking Term Loan Agreement matures in March 2026 and bears interest at Term SOFR plus an applicable margin. As of June 30, 2023, Viking is in compliance with all covenants under the Viking Term Loan Agreement. | ||
Viking Pipeline | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Interest Rate Description | bears interest at Term SOFR plus an applicable margin | ||
Notes Payable due 2025 | Variable Rate | Guardian Pipeline | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 120 | $ 120 | |
Total debt | 120 | $ 120 | 120 |
Debt Instrument, Interest Rate During Period | Rate | 6.33% | ||
Notes Payable due 2026 | Variable Rate | Viking Pipeline | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 60 | $ 60 | |
Total debt | $ 60 | $ 60 | 0 |
Debt Instrument, Interest Rate During Period | Rate | 6.46% | ||
Subsidiary Issuer [Member] | 5.0% Notes Payable due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate (in hundredths) | Rate | 5% | 5% | |
Total debt | $ 0 | $ 0 | 425 |
Debt Instrument, Redemption Price, Percentage | 100% | ||
Repayments of Debt | $ 425 | ||
Subsidiary Issuer [Member] | 4.9% Notes Payable due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | $ 500 | |
Interest Rate (in hundredths) | Rate | 4.90% | 4.90% | |
Total debt | $ 500 | $ 500 | 500 |
Subsidiary Issuer [Member] | 6.65% Notes Payable due 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 600 | $ 600 | |
Interest Rate (in hundredths) | Rate | 6.65% | 6.65% | |
Total debt | $ 600 | $ 600 | 600 |
Subsidiary Issuer [Member] | 6.85% Notes Payable due 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 600 | $ 600 | |
Interest Rate (in hundredths) | Rate | 6.85% | 6.85% | |
Total debt | $ 600 | $ 600 | 600 |
Subsidiary Issuer [Member] | 6.125% Notes Payable due 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 650 | $ 650 | |
Interest Rate (in hundredths) | Rate | 6.125% | 6.125% | |
Total debt | $ 650 | $ 650 | 650 |
Subsidiary Issuer [Member] | 6.2% Notes Payable due 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 400 | $ 400 | |
Interest Rate (in hundredths) | Rate | 6.20% | 6.20% | |
Total debt | $ 400 | $ 400 | 400 |
Parent Company | |||
Debt Instrument [Line Items] | |||
Commercial Paper | 0 | 0 | 0 |
Parent Company | 7.5% Notes Payable due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | $ 500 | |
Interest Rate (in hundredths) | Rate | 7.50% | 7.50% | |
Total debt | $ 0 | $ 0 | 500 |
Debt Instrument, Redemption Price, Percentage | 100% | ||
Repayments of Debt | $ 500 | ||
Parent Company | 2.75% Notes Payable due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | $ 500 | |
Interest Rate (in hundredths) | Rate | 2.75% | 2.75% | |
Total debt | $ 500 | $ 500 | 500 |
Parent Company | 2.2% Notes Payable due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 400 | $ 400 | |
Interest Rate (in hundredths) | Rate | 2.20% | 2.20% | |
Total debt | $ 387 | $ 387 | 387 |
Parent Company | 5.85% Notes Payable due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 600 | $ 600 | |
Interest Rate (in hundredths) | Rate | 5.85% | 5.85% | |
Total debt | $ 600 | $ 600 | 600 |
Parent Company | 4.0% Notes Payable due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | $ 500 | |
Interest Rate (in hundredths) | Rate | 4% | 4% | |
Total debt | $ 500 | $ 500 | 500 |
Parent Company | 4.55% Notes Payable due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 800 | $ 800 | |
Interest Rate (in hundredths) | Rate | 4.55% | 4.55% | |
Total debt | $ 800 | $ 800 | 800 |
Parent Company | 6.875% Notes Payable due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 100 | $ 100 | |
Interest Rate (in hundredths) | Rate | 6.875% | 6.875% | |
Total debt | $ 100 | $ 100 | 100 |
Parent Company | 4.35% Notes Payable due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 700 | $ 700 | |
Interest Rate (in hundredths) | Rate | 4.35% | 4.35% | |
Total debt | $ 700 | $ 700 | 700 |
Parent Company | 3.4% Notes Payable due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 750 | $ 750 | |
Interest Rate (in hundredths) | Rate | 3.40% | 3.40% | |
Total debt | $ 714 | $ 714 | 714 |
Parent Company | 3.1% Notes Payable due 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 850 | $ 850 | |
Interest Rate (in hundredths) | Rate | 3.10% | 3.10% | |
Total debt | $ 780 | $ 780 | 780 |
Parent Company | 6.35% Notes Payable due 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 600 | $ 600 | |
Interest Rate (in hundredths) | Rate | 6.35% | 6.35% | |
Total debt | $ 600 | $ 600 | 600 |
Parent Company | 6.1% Notes Payable due 2032 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 750 | $ 750 | |
Interest Rate (in hundredths) | Rate | 6.10% | 6.10% | |
Total debt | $ 750 | $ 750 | 750 |
Parent Company | 6.0% Notes Payable due 2035 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 400 | $ 400 | |
Interest Rate (in hundredths) | Rate | 6% | 6% | |
Total debt | $ 400 | $ 400 | 400 |
Parent Company | 4.95% Notes Payable due 2047 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 700 | $ 700 | |
Interest Rate (in hundredths) | Rate | 4.95% | 4.95% | |
Total debt | $ 689 | $ 689 | 689 |
Parent Company | 5.2% Notes Payable due 2048 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 1,000 | $ 1,000 | |
Interest Rate (in hundredths) | Rate | 5.20% | 5.20% | |
Total debt | $ 1,000 | $ 1,000 | 1,000 |
Parent Company | 4.45% Notes Payable due 2049 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 750 | $ 750 | |
Interest Rate (in hundredths) | Rate | 4.45% | 4.45% | |
Total debt | $ 653 | $ 653 | 673 |
Parent Company | 4.5% Notes Payable due 2050 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | $ 500 | |
Interest Rate (in hundredths) | Rate | 4.50% | 4.50% | |
Total debt | $ 443 | $ 443 | 443 |
Parent Company | 7.15% Notes Payable due 2051 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 300 | $ 300 | |
Interest Rate (in hundredths) | Rate | 7.15% | 7.15% | |
Total debt | $ 300 | $ 300 | $ 300 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.955 | $ 0.955 | $ 0.935 | $ 0.935 | |
Dividends, Preferred Stock, Cash Paid | $ 0.3 | $ 0.3 | |||
Preferred Stock, Dividends, Declared | $ 0 | $ 0 | $ 0 | $ 0 | |
Series E Preferred Stock [Member] | |||||
Preferred Stock, Dividend Rate, Percentage | 5.50% | ||||
Subsequent Event [Member] | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.955 | ||||
Dividends Payable, Date of Record | Aug. 01, 2023 | ||||
Dividends Payable, Date to be Paid | Aug. 14, 2023 | ||||
Preferred Stock, Dividends, Declared | $ 0.3 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Risk management assets/liabilities - January 1 | $ (58) | $ (58) | ||||
Retirement and other postretirement benefit plan obligations - January 1 | (55) | (55) | ||||
Risk-management assets/liabilities of unconsolidated affiliates - January 1 | 5 | 5 | ||||
Accumulated other comprehensive loss - January 1 | (108) | (108) | ||||
Other comprehensive income (loss) before reclassification, risk-management assets/liabilities | $ 51 | $ 22 | 74 | $ (50) | ||
Other comprehensive income before reclassification, retirement and postretirement benefit plan obligations | 0 | |||||
Other comprehensive income (loss) before reclassification, risk-management assets/liabilities of unconsolidated affiliates | (1) | |||||
Other comprehensive income before reclassifications | 73 | |||||
Other comprehensive income (loss) reclassification adjustment from AOCI for risk-management assets/liabilities, net of tax | (25) | 70 | (37) | 136 | ||
Other comprehensive income, retirement and other postretirement benefit plans, reclassification adjustment from AOCI, net of tax | 1 | |||||
Other comprehensive income (loss), reclassification adjustment from AOCI for other comprehensive income attributable to unconsolidated affiliates, net of tax | (4) | |||||
Other comprehensive income (loss), reclassification adjustment included in net income, net of tax | (40) | |||||
Other comprehensive income, risk-management assets/liabilities, after reclassification adjustment, net of tax | 37 | |||||
Other comprehensive income, retirement and other postretirement benefit plans, after reclassification adjustment, net of tax | 1 | 3 | 1 | 6 | ||
Other comprehensive income (loss), risk-management assets/liabilities of unconsolidated affiliates, net of tax | (5) | |||||
Other comprehensive income, net of tax | 24 | $ 9 | $ 101 | $ 4 | 33 | $ 105 |
Risk management assets/liabilities - June 30 | (21) | (21) | ||||
Retirement and other postretirement benefit plan obligations - June 30 | (54) | (54) | ||||
Risk-management assets/liabilities of unconsolidated affiliates - June 30 | 0 | 0 | ||||
Accumulated other comprehensive loss - June 30 | (75) | (75) | ||||
Cash Flow Hedging [Member] | Commodity Contracts | ||||||
Unrealized gain loss on cash flow hedges net of tax accumulated other comprehensive income | 60 | 60 | ||||
Price risk cash flow hedge unrealized gain (loss) to be reclassified during next 12 months | 60 | 60 | ||||
Cash Flow Hedging [Member] | Interest Rate Contracts | ||||||
Amount of accumulated other comprehensive income (loss) attributable primarily to settled interest-rate swaps | (91) | (91) | ||||
Amount of accumulated other comprehensive income attributable primarily to forward starting interest-rate swaps | 10 | 10 | ||||
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net | $ (18) | $ (18) |
EARNINGS PER SHARE EARNINGS P_3
EARNINGS PER SHARE EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic EPS | ||||
Net income available for common stock | $ 468 | $ 414 | $ 1,517 | $ 805 |
Shares | 448.3 | 447.5 | 448.2 | 447.3 |
Earnings per share, basic | $ 1.04 | $ 0.93 | $ 3.38 | $ 1.80 |
Diluted EPS | ||||
Effect of dilutive securities | $ 0 | $ 0 | $ 0 | $ 0 |
Effect of dilutive securities, number of shares | 0.7 | 0.7 | 0.8 | 1 |
Net income available to common stock holders, diluted | $ 468 | $ 414 | $ 1,517 | $ 805 |
Shares | 449 | 448.2 | 449 | 448.3 |
Earnings per share, diluted | $ 1.04 | $ 0.92 | $ 3.38 | $ 1.80 |
UNCONSOLIDATED AFFILIATES (Deta
UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net earnings from investments | $ 43 | $ 36 | $ 83 | $ 72 |
Contributions to unconsolidated affiliates | 108 | 1 | ||
Unconsolidated Affiliates [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 27 | 15 | 55 | 30 |
Northern Border Pipeline | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net earnings from investments | 14 | 16 | 38 | 36 |
Overland Pass Pipeline | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net earnings from investments | 13 | 8 | 22 | 13 |
Roadrunner | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net earnings from investments | 15 | 9 | 22 | 18 |
Contributions to unconsolidated affiliates | 105 | |||
Other Unconsolidated Affiliates | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net earnings from investments | $ 1 | $ 3 | $ 1 | $ 5 |
REVENUES (Details)
REVENUES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 2,112 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 226 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 400 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 296 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 282 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 908 |
Remaining Contract Terms [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Performance Obligation, Contract Term | one month to 22 years |
SEGMENTS (Details)
SEGMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 3,732 | $ 5,996 | $ 8,253 | $ 11,441 | |||
Cost of sales and fuel (exclusive of depreciation and operating costs) | (2,482) | (4,878) | (5,829) | (9,244) | |||
Operating costs | (343) | (277) | (639) | (541) | |||
Depreciation and amortization | (170) | (158) | (332) | (312) | |||
Equity in net earnings from investments | 43 | 36 | 83 | 72 | |||
Other operating income (expense), net | 0 | 6 | 781 | 7 | |||
Investments in unconsolidated affiliates | 885 | 801 | 885 | 801 | $ 802 | ||
Total assets | 24,038 | 24,527 | 24,038 | 24,527 | $ 24,379 | ||
Capital expenditures | 305 | 302 | 594 | 559 | |||
Net Income | 468 | $ 1,049 | 414 | $ 391 | 1,517 | 805 | |
Interest expense, net of capitalized interest | 180 | 171 | 346 | 343 | |||
Income tax expense | 145 | 131 | 475 | 253 | |||
Noncash compensation expense and other | 8 | 12 | 18 | 37 | |||
Other corporate costs | (1) | (1) | (9) | 2 | |||
Medford Settlement Gain | 779 | 0 | |||||
Medford Incident | |||||||
Segment Reporting Information [Line Items] | |||||||
Third Party Fractionation Costs | 77 | ||||||
Medford Incident | Business Interruption - Settlement Proceeds | |||||||
Segment Reporting Information [Line Items] | |||||||
Medford Settlement Gain | $ 779 | 779 | |||||
Medford Incident | Business Interruption - Settlement Proceeds Less Third Party Frac Costs | |||||||
Segment Reporting Information [Line Items] | |||||||
Medford Settlement Gain | 702 | ||||||
Natural Gas Gathering And Processing [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 809 | 1,740 | 2,067 | 3,332 | |||
Cost of sales and fuel (exclusive of depreciation and operating costs) | (385) | (1,398) | (1,260) | (2,687) | |||
Operating costs | (115) | (97) | (220) | (191) | |||
Depreciation and amortization | (67) | (65) | (134) | (128) | |||
Equity in net earnings from investments | 1 | 1 | 1 | 3 | |||
Other operating income (expense), net | 1 | ||||||
Noncash compensation expense | 8 | ||||||
Segment adjusted EBITDA | 314 | 252 | 597 | 467 | |||
Investments in unconsolidated affiliates | 27 | 28 | 27 | 28 | |||
Total assets | 6,854 | 7,085 | 6,854 | 7,085 | |||
Capital expenditures | 84 | 124 | 182 | 217 | |||
Noncash compensation expense and other | 4 | 6 | 10 | ||||
Natural Gas Gathering And Processing [Member] | Natural Gas Gathering and Processing Intersegment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 521 | 1,100 | 1,200 | 2,100 | |||
Natural Gas Liquids | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 3,300 | 5,193 | 7,035 | 9,927 | |||
Cost of sales and fuel (exclusive of depreciation and operating costs) | (2,627) | (4,543) | (5,722) | (8,632) | |||
Operating costs | (161) | (143) | (313) | (272) | |||
Depreciation and amortization | (85) | (75) | (163) | (150) | |||
Equity in net earnings from investments | 13 | 9 | 22 | 14 | |||
Other operating income (expense), net | 776 | ||||||
Noncash compensation expense | 13 | ||||||
Segment adjusted EBITDA | 530 | 517 | 1,811 | 1,045 | |||
Investments in unconsolidated affiliates | 414 | 415 | 414 | 415 | |||
Total assets | 14,346 | 15,183 | 14,346 | 15,183 | |||
Capital expenditures | 169 | 150 | 306 | 276 | |||
Noncash compensation expense and other | 5 | 1 | 8 | ||||
Natural Gas Liquids | Natural Gas Liquids Regulated [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 696 | 617 | 1,300 | 1,200 | |||
Cost of sales and fuel (exclusive of depreciation and operating costs) | (203) | (152) | (387) | (298) | |||
Operating costs | (93) | (82) | (180) | (157) | |||
Natural Gas Liquids | Natural Gas Liquids Regulated [Member] | Operating Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 640 | 568 | 1,200 | 1,100 | |||
Natural Gas Pipelines | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 146 | 132 | 317 | 281 | |||
Cost of sales and fuel (exclusive of depreciation and operating costs) | (1) | (1) | (15) | (18) | |||
Operating costs | (49) | (41) | (94) | (82) | |||
Depreciation and amortization | (16) | (16) | (33) | (31) | |||
Equity in net earnings from investments | 29 | 26 | 60 | 55 | |||
Other operating income (expense), net | 0 | ||||||
Noncash compensation expense | 3 | ||||||
Segment adjusted EBITDA | 126 | 116 | 271 | 240 | |||
Investments in unconsolidated affiliates | 443 | 358 | 443 | 358 | |||
Total assets | 2,384 | 2,176 | 2,384 | 2,176 | |||
Capital expenditures | 39 | 19 | 85 | 42 | |||
Noncash compensation expense and other | 1 | 0 | 4 | ||||
Natural Gas Pipelines | Natural Gas Pipelines Regulated [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 103 | 101 | 219 | 227 | |||
Cost of sales and fuel (exclusive of depreciation and operating costs) | (8) | (7) | (23) | (28) | |||
Operating costs | (41) | (36) | (79) | (71) | |||
Total Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 4,255 | 7,065 | 9,419 | 13,540 | |||
Cost of sales and fuel (exclusive of depreciation and operating costs) | (3,013) | (5,942) | (6,997) | (11,337) | |||
Operating costs | (325) | (281) | (627) | (545) | |||
Depreciation and amortization | (168) | (156) | (330) | (309) | |||
Equity in net earnings from investments | 43 | 36 | 83 | 72 | |||
Other operating income (expense), net | 777 | ||||||
Noncash compensation expense | 24 | ||||||
Segment adjusted EBITDA | 970 | 885 | 2,679 | 1,752 | |||
Investments in unconsolidated affiliates | 884 | 801 | 884 | 801 | |||
Total assets | 23,584 | 24,444 | 23,584 | 24,444 | |||
Capital expenditures | 292 | 293 | 573 | 535 | |||
Noncash compensation expense and other | 10 | 7 | 22 | ||||
Other and Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (523) | (1,069) | (1,166) | (2,099) | |||
Cost of sales and fuel (exclusive of depreciation and operating costs) | 531 | 1,064 | 1,168 | 2,093 | |||
Operating costs | (18) | 4 | (12) | 4 | |||
Depreciation and amortization | (2) | (2) | (2) | (3) | |||
Equity in net earnings from investments | 0 | 0 | 0 | 0 | |||
Investments in unconsolidated affiliates | 1 | 0 | 1 | 0 | |||
Total assets | 454 | 83 | 454 | 83 | |||
Capital expenditures | 13 | 9 | 21 | 24 | |||
Noncustomer [Domain] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 102 | (133) | 142 | (307) | |||
NGL and Condensate Sales [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 3,149 | 4,987 | 6,710 | 9,512 | |||
NGL and Condensate Sales [Member] | Natural Gas Gathering And Processing [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 550 | 1,039 | 1,194 | 2,043 | |||
NGL and Condensate Sales [Member] | Natural Gas Liquids | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,120 | 5,010 | 6,671 | 9,559 | |||
NGL and Condensate Sales [Member] | Natural Gas Pipelines | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 | |||
NGL and Condensate Sales [Member] | Total Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,670 | 6,049 | 7,865 | 11,602 | |||
NGL and Condensate Sales [Member] | Other and Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (521) | (1,062) | (1,155) | (2,090) | |||
Residue Natural Gas Sales [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 219 | 661 | 812 | 1,238 | |||
Residue Natural Gas Sales [Member] | Natural Gas Gathering And Processing [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 219 | 660 | 787 | 1,211 | |||
Residue Natural Gas Sales [Member] | Natural Gas Liquids | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 | |||
Residue Natural Gas Sales [Member] | Natural Gas Pipelines | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 1 | 25 | 27 | |||
Residue Natural Gas Sales [Member] | Total Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 219 | 661 | 812 | 1,238 | |||
Residue Natural Gas Sales [Member] | Other and Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Gathering, Processing and Exchange Services Revenue | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 168 | 177 | 337 | 344 | |||
Gathering, Processing and Exchange Services Revenue | Natural Gas Gathering And Processing [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 35 | 37 | 73 | 68 | |||
Gathering, Processing and Exchange Services Revenue | Natural Gas Liquids | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 133 | 140 | 264 | 276 | |||
Gathering, Processing and Exchange Services Revenue | Natural Gas Pipelines | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 | |||
Gathering, Processing and Exchange Services Revenue | Total Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 168 | 177 | 337 | 344 | |||
Gathering, Processing and Exchange Services Revenue | Other and Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Transportation and Storage Revenue [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 189 | 168 | 382 | 336 | |||
Transportation and Storage Revenue [Member] | Natural Gas Gathering And Processing [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 | |||
Transportation and Storage Revenue [Member] | Natural Gas Liquids | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 45 | 40 | 95 | 87 | |||
Transportation and Storage Revenue [Member] | Natural Gas Pipelines | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 146 | 130 | 291 | 253 | |||
Transportation and Storage Revenue [Member] | Total Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 191 | 170 | 386 | 340 | |||
Transportation and Storage Revenue [Member] | Other and Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (2) | (2) | (4) | (4) | |||
Other [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 7 | 3 | 12 | 11 | |||
Other [Member] | Natural Gas Gathering And Processing [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 5 | 4 | 13 | 10 | |||
Other [Member] | Natural Gas Liquids | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 2 | 3 | 5 | 5 | |||
Other [Member] | Natural Gas Pipelines | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 0 | 1 | 1 | 1 | |||
Other [Member] | Total Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 7 | 8 | 19 | 16 | |||
Other [Member] | Other and Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 0 | $ (5) | $ (7) | $ (5) |