Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 001-32678 | |
Entity Registrant Name | DCP MIDSTREAM, LP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 03-0567133 | |
Entity Address, Address Line One | 6900 E. Layton Ave | |
Entity Address, Address Line Two | Suite 900 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80237 | |
City Area Code | (303) | |
Local Phone Number | 595-3331 | |
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 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001338065 | |
Entity Common Stock, Shares Outstanding | 208,657,950 | |
Document Period End Date | true | |
Document Period End Date | Mar. 31, 2023 | |
Series B Preferred Limited Partners [Member] | ||
Title of 12(b) Security | 7.875% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units | |
Trading Symbol | DCP PRB | |
Security Exchange Name | NYSE | |
Series C Preferred Limited Partners [Member] | ||
Title of 12(b) Security | 7.95% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units | |
Trading Symbol | DCP PRC | |
Security Exchange Name | NYSE | |
Limited Partners | ||
Title of 12(b) Security | Common units representing limited partnership interests | |
Trading Symbol | DCP | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1 | $ 1 |
Accounts receivable: | ||
Trade, net of allowance for credit losses of $2 and $2 million, respectively | 707 | 995 |
Affiliates | 389 | 360 |
Other | 6 | 3 |
Inventories | 28 | 83 |
Unrealized gains on derivative instruments | 87 | 140 |
Collateral cash deposits | 32 | 93 |
Other | 20 | 27 |
Total current assets | 1,270 | 1,702 |
Property, plant and equipment, net | 7,759 | 7,763 |
Intangible assets, net | 33 | 34 |
Investments in unconsolidated affiliates | 3,458 | 3,475 |
Unrealized gains on derivative instruments | 20 | 26 |
Operating lease assets | 119 | 112 |
Other long-term assets | 225 | 222 |
Total assets | 12,884 | 13,334 |
Accounts payable: | ||
Trade | 709 | 1,199 |
Affiliates | 298 | 255 |
Other | 37 | 29 |
Current debt | 7 | 506 |
Unrealized losses on derivative instruments | 68 | 148 |
Accrued interest | 65 | 78 |
Accrued taxes | 58 | 58 |
Accrued wages and benefits | 35 | 72 |
Capital spending accrual | 12 | 22 |
Other | 100 | 137 |
Total current liabilities | 1,389 | 2,504 |
Long-term debt | 4,892 | 4,357 |
Unrealized losses on derivative instruments | 20 | 35 |
Deferred income taxes | 33 | 33 |
Operating lease liabilities | 100 | 95 |
Other long-term liabilities | 302 | 274 |
Total liabilities | 6,736 | 7,298 |
Equity: | ||
Limited partners (208,649,649 and 208,396,558 common units authorized, issued and outstanding, respectively) | 5,868 | 5,755 |
Accumulated other comprehensive loss | (6) | (6) |
Total partners’ equity | 6,124 | 6,011 |
Noncontrolling interests | 24 | 25 |
Total equity | 6,148 | 6,036 |
Total liabilities and equity | 12,884 | 13,334 |
Allowance for Doubtful Accounts Receivable, Current | $ 2 | $ 2 |
Common unitholders, units issued (in shares) | 208,649,649 | 208,396,558 |
Common unitholders, units outstanding (in shares) | 208,649,649 | 208,396,558 |
Series B Preferred Limited Partners [Member] | ||
Equity: | ||
Preferred Units, Preferred Partners' Capital Accounts | $ 156 | $ 156 |
Total equity | $ 156 | $ 156 |
Preferred Units, Issued | 6,450,000 | 6,450,000 |
Preferred Units, Outstanding | 6,450,000 | 6,450,000 |
Series C Preferred Limited Partners [Member] | ||
Equity: | ||
Preferred Units, Preferred Partners' Capital Accounts | $ 106 | $ 106 |
Total equity | $ 106 | $ 106 |
Preferred Units, Issued | 4,400,000 | 4,400,000 |
Preferred Units, Outstanding | 4,400,000 | 4,400,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating revenues: | ||
Trading and marketing gains (losses), net | $ 87 | $ (235) |
Total operating revenues | 2,726 | 3,375 |
Operating costs and expenses: | ||
Operating and maintenance expense | 197 | 152 |
Depreciation and amortization expense | 90 | 90 |
General and administrative expense | 80 | 55 |
Gain on sale of assets, net | 0 | (7) |
Restructuring costs | 10 | 0 |
Total operating costs and expenses | 2,605 | 3,365 |
Operating income | 121 | 10 |
Earnings from unconsolidated affiliates | 160 | 143 |
Interest expense, net | (68) | (71) |
Other (income) expenses, net | 213 | 82 |
Income tax expense | (1) | (1) |
Net income | 212 | 81 |
Net income attributable to noncontrolling interests | (1) | (1) |
Net income attributable to partners | 211 | 80 |
Series A preferred limited partners' interest in net income | 0 | (9) |
Series B preferred limited partners' interest in net income | (3) | (3) |
Series C preferred limited partners' interest in net income | (2) | (2) |
Net income allocable to limited partners | $ 206 | $ 66 |
Net income per limited partner unit — basic and diluted | $ 0.99 | $ 0.32 |
Weighted Average Limited Partnership Units Outstanding, Basic | 208.6 | 208.4 |
Weighted Average Limited Partnership Units Outstanding, Diluted | 208.6 | 208.8 |
Series A Preferred Limited Partners [Member] | ||
Operating costs and expenses: | ||
Net income | $ 9 | |
Limited Partners | ||
Operating costs and expenses: | ||
Net income | $ 206 | 66 |
Natural Gas, NGLs and Condensate [Member] | Third Party | ||
Operating revenues: | ||
Sales of natural gas, NGLs and condensate | 1,743 | 2,328 |
Operating costs and expenses: | ||
Purchases and related costs | 1,852 | 2,719 |
Transportation, Processing and Other [Member] | ||
Operating revenues: | ||
Sales of natural gas, NGLs and condensate | 163 | 155 |
Affiliated Entity | Natural Gas, NGLs and Condensate [Member] | ||
Operating revenues: | ||
Sales of natural gas, NGLs and condensate | 733 | 1,127 |
Operating costs and expenses: | ||
Purchases and related costs | 97 | 99 |
Affiliated Entity | Transportation Fees | ||
Operating costs and expenses: | ||
Purchases and related costs | $ 279 | $ 257 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ 212 | $ 81 |
Other comprehensive income: | ||
Other comprehensive income | 0 | 0 |
Total comprehensive income | 212 | 81 |
Total comprehensive income attributable to noncontrolling interests | (1) | (1) |
Total comprehensive income attributable to partners | $ 211 | $ 80 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
OPERATING ACTIVITIES: | ||
Net (loss) income | $ 212 | $ 81 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 90 | 90 |
Earnings from unconsolidated affiliates | (160) | (143) |
Distributions from unconsolidated affiliates | 168 | 168 |
Net unrealized (gains) losses on derivative instruments | (40) | 176 |
Gain on sale of assets, net | 0 | (7) |
Other, net | 23 | 2 |
Change in operating assets and liabilities, which (used) provided cash, net of effects of acquisitions: | ||
Accounts receivable | 256 | (334) |
Inventories | 33 | 31 |
Accounts payable | (454) | 327 |
Decrease in Other Operating Assets and Liabilities, Net | 7 | (202) |
Net cash provided by operating activities | 135 | 189 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (81) | (23) |
Payments to Acquire Equity Method Investments | 0 | (1) |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 9 | 0 |
Proceeds from sale of assets | 0 | 16 |
Net cash used in investing activities | (72) | (8) |
FINANCING ACTIVITIES: | ||
Proceeds from debt | 1,243 | 1,542 |
Payments of debt | (1,210) | (1,632) |
Distributions to preferred limited partners | (5) | (5) |
Distributions to limited partners and general partner | (90) | (81) |
Payments to Noncontrolling Interests | (2) | (1) |
Payments of Debt Issuance Costs | 0 | (4) |
Net cash provided by (used in) financing activities | (64) | (181) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (1) | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 5 | 1 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 4 | 1 |
Cash and cash equivalents, end of period | 1 | 1 |
Restricted Cash, Current | $ 3 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Series A Preferred Limited Partners [Member] | Series B Preferred Limited Partners [Member] | Series C Preferred Limited Partners [Member] | Limited Partners | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interests |
Beginning balance at Dec. 31, 2021 | $ 5,876 | $ 489 | $ 156 | $ 106 | $ 5,106 | $ (6) | $ 25 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Net income (loss) | 81 | 9 | 3 | 2 | 66 | 0 | 1 |
Other comprehensive income | 0 | ||||||
Total Cash Distribution to Unitholders | (86) | 0 | (3) | (2) | (81) | 0 | 0 |
Distributions to noncontrolling interests | (1) | 0 | 0 | 0 | 0 | 0 | (1) |
Employee Benefits and Share-based Compensation | 1 | 0 | 0 | 0 | 1 | 0 | 0 |
Ending balance at Mar. 31, 2022 | 5,871 | $ 498 | 156 | 106 | 5,092 | (6) | 25 |
Beginning balance at Dec. 31, 2022 | 6,036 | 156 | 106 | 5,755 | (6) | 25 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Net income (loss) | 212 | 3 | 2 | 206 | 0 | 1 | |
Other comprehensive income | 0 | ||||||
Total Cash Distribution to Unitholders | (95) | (3) | (2) | (90) | 0 | 0 | |
Distributions to noncontrolling interests | (2) | 0 | 0 | 0 | 0 | (2) | |
Employee Benefits and Share-based Compensation | (3) | 0 | 0 | (3) | 0 | 0 | |
Ending balance at Mar. 31, 2023 | $ 6,148 | $ 156 | $ 106 | $ 5,868 | $ (6) | $ 24 |
Description of Business and Bas
Description of Business and Basis of Presentation (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation DCP Midstream, LP, with its consolidated subsidiaries, or “ us, ” “ we, ” “ our ” or the “ Partnership ” is a Delaware limited partnership formed in 2005 by DCP Midstream, LLC to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. Our Partnership includes our Logistics and Marketing and Gathering and Processing segments. For additional information regarding these segments, see Note 1 4 - Business Segments. Our operations and activities are managed by our general partner, DCP Midstream GP, LP (“GP LP”), which in turn is managed by its general partner, DCP Midstream GP, LLC, which we refer to as the General Partner, and which is 100% owned by DCP Midstream, LLC. On August 17, 2022, Phillips 66 and Enbridge Inc. (“Enbridge”), through their respective subsidiaries, entered into an Agreement and Plan of Merger (the “Realignment Transaction”) for the purpose of realigning their respective economic interests in, and governance responsibilities over, DCP Midstream, LP and Gray Oak Pipeline, LLC through the merger of existing joint ventures owned by Phillips 66 and Enbridge. As part of the Realignment Transaction, Phillips Gas Company LLC (“PGC”), an indirect wholly owned subsidiary of Phillips 66, and Spectra DEFS Holding, LLC, an indirect wholly owned subsidiary of Enbridge, as the members of DCP Midstream, LLC, the owner of the General Partner, the general partner of GP LP, the general partner of the Partnership, entered into a Third Amended and Restated Limited Liability Agreement of DCP Midstream, LLC, effective on August 17, 2022 (the “Third A&R LLC Agreement”). Under the Third A&R LLC Agreement, PGC, except as otherwise provided therein, was delegated the power to control, direct and manage all activities of DCP Midstream, LLC associated with the Partnership and each of its subsidiaries, the General Partner and the GP LP, and, in each case, the businesses, activities, assets and liabilities thereof. The Third A&R LLC Agreement also delegated PGC the power to exercise DCP Midstream, LLC’s rights to appoint or remove any director of the General Partner and vote any common units representing limited partner interests of the Partnership that are owned directly or indirectly by DCP Midstream, LLC. Prior to the Realignment Transaction, Phillips 66 and Enbridge, through their respective subsidiaries, jointly governed DCP Midstream, LLC and its subsidiaries. On January 5, 2023, the Partnership, GP LP, the General Partner, Phillips 66, Phillips 66 Project Development Inc., a Delaware corporation and indirect wholly owned subsidiary of Phillips 66 (“PDI”), and Dynamo Merger Sub LLC, a Delaware limited liability company and wholly owned subsidiary of PDI (“Merger Sub”), entered into a Merger Agreement, pursuant to which Merger Sub will merge with and into the Partnership, with the Partnership surviving as a Delaware limited partnership (the “Merger”). At the effective time of the Merger (the “Effective Time”), each common unit representing a limited partner interest in the Partnership (each, a “Common Unit”) issued and outstanding as of immediately prior to the Effective Time (other than the Sponsor Owned Units, as defined below) (each, a “Public Common Unit”) will be converted into the right to receive $41.75 per Public Common Unit in cash, without any interest thereon. The Partnership’s preferred units will be unaffected by the Merger and will remain outstanding immediately following the Merger. The Common Units owned by DCP Midstream, LLC, and the General Partner (collectively, the “Sponsor Owned Units”) will be unaffected by the Merger and will remain outstanding immediately following the Merger. At the Effective Time, PDI’s ownership interest in Merger Sub will be converted into a number of new Common Units equal to the number of Public Common Units. As a result of the Merger, Phillips 66’s economic interest in the Partnership will increase from 43.3% to approximately 86.8%. Enbridge's economic interest in the Partnership will remain unchanged at approximately 13.2%. The Merger was unanimously approved by the board of directors of the General Partner, based on the unanimous approval and recommendation of a special committee comprised entirely of independent directors after evaluation of the Merger by the special committee in consultation with independent financial and legal advisors. The Merger is expected to close in the second quarter of 2023. Completion of the Merger is subject to certain customary conditions as set forth in the Merger Agreement. There can be no assurance that the Merger will be consummated on the terms described above or at all. As of March 31, 2023, DCP Midstream, LLC, together with the General Partner, owned approximately 56% of the Partnership’s common units representing limited partner interests. The condensed consolidated financial statements include the accounts of the Partnership and all majority-owned subsidiaries where we have the ability to exercise control. Investments in greater than 20% owned affiliates that are not variable interest entities and where we do not have the ability to exercise control, and investments in less than 20% owned affiliates where we have the ability to exercise significant influence, are accounted for using the equity method. The condensed consolidated financial statements have been prepared in accordance with GAAP. All intercompany balances and transactions have been eliminated in consolidation. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | Revenue Recognition We disaggregate our revenue from contracts with customers by type of contract for each of our reportable segments, as we believe it best depicts the nature, timing and uncertainty of our revenue and cash flows. The following tables set forth our revenue by those categories: Three Months Ended March 31, 2023 Logistics and Marketing Gathering and Processing Eliminations Total (millions) Sales of natural gas $ 802 $ 680 $ (669) $ 813 Sales of NGLs and condensate (a) 1,528 898 (763) 1,663 Transportation, processing and other 19 144 — 163 Trading and marketing gains, net (b) 43 44 — 87 Total operating revenues $ 2,392 $ 1,766 $ (1,432) $ 2,726 (a) Includes $479 million for the three months ended March 31, 2023 of revenues from physical sales contracts and buy-sell exchange transactions in our Logistics and Marketing segment, which is net of $725 million of buy-sell purchases related to buy-sell revenues of $796 million which are not within the scope of Topic 606. (b) Not within the scope of Topic 606. Three Months Ended March 31, 2022 Logistics and Marketing Gathering and Processing Eliminations Total (millions) Sales of natural gas $ 1,063 $ 882 $ (821) $ 1,124 Sales of NGLs and condensate (a) 2,122 1,282 (1,073) 2,331 Transportation, processing and other 19 136 — 155 Trading and marketing losses, net (b) (41) (194) — (235) Total operating revenues $ 3,163 $ 2,106 $ (1,894) $ 3,375 (a) Includes $676 million of revenues from physical sales contracts and buy-sell exchange transactions in our Logistics and Marketing segment for the three months ended March 31, 2022, which is net of $756 million of buy-sell purchases related to buy-sell revenues of $851 million which are not within the scope of Topic 606. (b) Not within the scope of Topic 606. The revenue expected to be recognized in the future related to performance obligations that are not satisfied is approximately $370 million as of March 31, 2023. Our remaining performance obligations primarily consist of minimum volume commitment fee arrangements and are expected to be recognized through 2031 with a weighted average remaining life of three years as of March 31, 2023. As a practical expedient permitted by Topic 606, this amount excludes variable consideration as well as remaining performance obligations that have original expected durations of one year or less, as applicable. Our remaining performance obligations also exclude estimates of variable rate escalation clauses in our contracts with customers. |
Agreements and Transactions wit
Agreements and Transactions with Affiliates (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Agreements and Transactions with Affiliates | Agreements and Transactions with AffiliatesDCP Midstream, LLC Services Agreement and Other General and Administrative Charges The following table summarizes employee related costs that were charged by DCP Midstream, LLC to the Partnership that are included in the condensed consolidated statements of operations: Three Months Ended March 31, 2023 2022 (millions) Employee related costs charged by DCP Midstream, LLC Operating and maintenance expense $ 43 $ 40 General and administrative expense $ 58 $ 33 Restructuring costs $ 10 $ — Summary of Transactions with Affiliates The following table summarizes our transactions with affiliates: Three Months Ended March 31, 2023 2022 (millions) Phillips 66 (including its affiliates): Sales of natural gas, NGLs and condensate to affiliates $ 704 $ 1,095 Purchases and related costs from affiliates $ 75 $ 62 Transportation and related costs from affiliates $ 41 $ 43 Operating and maintenance and general administrative expenses $ 4 $ 3 Enbridge (including its affiliates): Sales of natural gas, NGLs and condensate to affiliates $ 1 $ — Purchases and related costs from affiliates $ — $ 13 Unconsolidated affiliates: Sales of natural gas, NGLs and condensate to affiliates $ 28 $ 32 Transportation, processing, and other to affiliates $ 4 $ 4 Purchases and related costs from affiliates $ 22 $ 24 Transportation and related costs from affiliates $ 238 $ 214 We had balances with affiliates as follows: March 31, 2023 December 31, 2022 (millions) Phillips 66 (including its affiliates): Accounts receivable $ 362 $ 343 Accounts payable $ 195 $ 167 Other assets $ — $ 1 Enbridge (including its affiliates): Accounts receivable $ 1 $ 1 Accounts payable $ — $ 1 Unconsolidated affiliates: Accounts receivable $ 26 $ 16 Accounts payable $ 103 $ 87 |
Inventories (Notes)
Inventories (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories were as follows: March 31, 2023 December 31, 2022 (millions) Natural gas $ 19 $ 47 NGLs 9 36 Total inventories $ 28 $ 83 We recognize lower of cost or net realizable value adjustments when the carrying value of our inventories exceeds their net realizable value. These non-cash charges are a component of purchases and related costs in the condensed consolidated statements of operations. We recognized $22 million and no lower of cost or net realizable value adjustments for the three months ended March 31, 2023 and 2022, respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment A summary of property, plant and equipment by classification is as follows: Depreciable March 31, 2023 December 31, 2022 (millions) Gathering and transmission systems 20 — 50 Years $ 7,896 $ 7,865 Processing, storage and terminal facilities 35 — 60 Years 5,159 5,138 Other 3 — 30 Years 564 563 Finance lease assets 5 — 35 Years 32 32 Construction work in progress 215 183 Property, plant and equipment 13,866 13,781 Accumulated depreciation (6,107) (6,018) Property, plant and equipment, net $ 7,759 $ 7,763 Construction projects with capitalized interest were immaterial during the three months ended March 31, 2023 and 2022. Depreciation expense was $89 million and $89 million for the three months ended March 31, 2023 and 2022, respectively. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates The following table summarizes our investments in unconsolidated affiliates: Carrying Value as of Percentage March 31, 2023 December 31, 2022 (millions) DCP Sand Hills Pipeline, LLC 66.67% $ 1,658 $ 1,653 DCP Southern Hills Pipeline, LLC 66.67% 710 713 Gulf Coast Express LLC 25.00% 395 408 Front Range Pipeline LLC 33.33% 189 191 Texas Express Pipeline LLC 10.00% 90 91 Mont Belvieu 1 Fractionator 20.00% 9 7 Discovery Producer Services LLC 40.00% 214 219 Cheyenne Connector, LLC 50.00% 142 143 Mont Belvieu Enterprise Fractionator 12.50% 29 28 Other Various 22 22 Total investments in unconsolidated affiliates $ 3,458 $ 3,475 Earnings from investments in unconsolidated affiliates were as follows: Three Months Ended March 31, 2023 2022 (millions) DCP Sand Hills Pipeline, LLC $ 87 $ 71 DCP Southern Hills Pipeline, LLC 25 24 Gulf Coast Express LLC 17 16 Front Range Pipeline LLC 11 10 Texas Express Pipeline LLC 5 5 Mont Belvieu 1 Fractionator 4 4 Discovery Producer Services LLC 6 6 Cheyenne Connector, LLC 3 4 Mont Belvieu Enterprise Fractionator 1 2 Other 1 1 Total earnings from unconsolidated affiliates $ 160 $ 143 The following tables summarize the combined financial information of our investments in unconsolidated affiliates: Three Months Ended March 31, 2023 2022 (millions) Statements of operations: Operating revenue $ 595 $ 563 Operating expenses $ 222 $ 217 Net income $ 379 $ 344 |
Fair Value Measurement (Notes)
Fair Value Measurement (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Derivatives and Fair Value | Fair Value Measurement Valuation Hierarchy Our fair value measurements are grouped into a three-level valuation hierarchy and are categorized in their entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows. • Level 1 — inputs are unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2 — inputs include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 — inputs are unobservable and considered significant to the fair value measurement. A financial instrument’s categorization within the hierarchy is based upon the level of judgment involved in the most significant input in the determination of the instrument’s fair value. Following is a description of the valuation methodologies used as well as the general classification of such instruments pursuant to the hierarchy. Commodity Derivative Assets and Liabilities We enter into a variety of derivative financial instruments, which may include exchange traded instruments (such as New York Mercantile Exchange, or NYMEX, crude oil or natural gas futures) or over-the-counter, or OTC, instruments (such as natural gas contracts, crude oil or NGL swaps). The exchange traded instruments are generally executed with a highly rated broker dealer serving as the clearinghouse for individual transactions. Our activities expose us to varying degrees of commodity price risk. To mitigate a portion of this risk and to manage commodity price risk related primarily to owned natural gas storage and pipeline assets, we engage in natural gas asset based trading and marketing, and we may enter into natural gas and crude oil derivatives to lock in a specific margin when market conditions are favorable. A portion of this may be accomplished through the use of exchange traded derivative contracts. Such instruments are generally classified as Level 1 since the value is equal to the quoted market price of the exchange traded instrument as of our balance sheet date, and no adjustments are required. Depending upon market conditions and our strategy we may enter into exchange traded derivative positions with a significant time horizon to maturity. Although such instruments are exchange traded, market prices may only be readily observable for a portion of the duration of the instrument. In order to calculate the fair value of these instruments, readily observable market information is utilized to the extent it is available; however, in the event that readily observable market data is not available, we may interpolate or extrapolate based upon observable data. In instances where we utilize an interpolated or extrapolated value, and it is considered significant to the valuation of the contract as a whole, we would classify the instrument within Level 3. We also engage in the business of trading energy related products and services, which exposes us to market variables and commodity price risk. We may enter into physical contracts or financial instruments with the objective of realizing a positive margin from the purchase and sale of these commodity-based instruments. We may enter into derivative instruments for NGLs or other energy related products, primarily using the OTC derivative instrument markets, which are not as active and liquid as exchange traded instruments. Market quotes for such contracts may only be available for short dated positions (up to six months), and an active market itself may not exist beyond such time horizon. Contracts entered into with a relatively short time horizon for which prices are readily observable in the OTC market are generally classified within Level 2. Contracts with a longer time horizon, for which we internally generate a forward curve to value such instruments, are generally classified within Level 3. The internally generated curve may utilize a variety of assumptions including, but not limited to, data obtained from third-party pricing services, historical and future expected relationship of NGL prices to crude oil prices, the knowledge of expected supply sources coming online, expected weather trends within certain regions of the United States, and the future expected demand for NGLs. Each instrument is assigned to a level within the hierarchy at the end of each financial quarter depending upon the extent to which the valuation inputs are observable. Generally, an instrument will move toward a level within the hierarchy that requires a lower degree of judgment as the time to maturity approaches, and as the markets in which the asset trades will likely become more liquid and prices more readily available in the market, thus reducing the need to rely upon our internally developed assumptions. However, the level of a given instrument may change, in either direction, depending upon market conditions and the availability of market observable data. The following table presents the financial instruments carried at fair value on a recurring basis as of March 31, 2023 and December 31, 2022, by condensed consolidated balance sheet caption and by valuation hierarchy, as described above: March 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (millions) Current assets: Commodity derivatives $ 1 $ 71 $ 15 $ 87 $ 2 $ 121 $ 17 $ 140 Short-term investments (a) $ — $ 1 $ — $ 1 $ — $ 1 $ — $ 1 Long-term assets: Commodity derivatives $ — $ 19 $ 1 $ 20 $ — $ 23 $ 3 $ 26 Investments in marketable securities (a) $ 45 $ — $ — $ 45 $ 42 $ — $ — $ 42 Current liabilities: Commodity derivatives $ (1) $ (66) $ (1) $ (68) $ (4) $ (142) $ (2) $ (148) Long-term liabilities: Commodity derivatives $ — $ (19) $ (1) $ (20) $ — $ (32) $ (3) $ (35) (a) $1 million and $1 million recorded within "Other" current assets and $45 million and $42 million recorded within "Other long-term assets" as of March 31, 2023 and December 31, 2022, respectively. Changes in Level 3 Fair Value Measurements The table below illustrates a rollforward of the amounts included in our condensed consolidated balance sheets for derivative financial instruments that we have classified within Level 3. We manage our overall risk at the portfolio level and in the execution of our strategy, we may use a combination of financial instruments, which may be classified within any level. Since Level 1 and Level 2 risk management instruments are not included in the rollforward below, the gains or losses in the table do not reflect the effect of our total risk management activities. Commodity Derivative Instruments Current Long-Term Current Long-Term (millions) Three months ended March 31, 2023 (a): Beginning balance $ 17 $ 3 $ (2) $ (3) Net unrealized gains (losses) included in earnings 2 (1) — 1 Transfers out of Level 3 — (1) — 1 Settlements (4) — 1 — Ending balance $ 15 $ 1 $ (1) $ (1) Net unrealized gains on derivatives still held included in earnings $ 2 $ — $ — $ — Three months ended March 31, 2022 (a): Beginning balance $ — $ 2 $ (3) $ (4) Net unrealized gains (losses) included in earnings 2 3 (12) (6) Transfers out of Level 3 — (1) 1 5 Settlements — — 4 — Ending balance $ 2 $ 4 $ (10) $ (5) Net unrealized gains (losses) on derivatives still held included in earnings $ 2 $ 2 $ (8) $ (3) (a) There were no purchases, issuances or sales of derivatives or transfers into Level 3 for the three months ended March 31, 2023 and 2022. Quantitative Information and Fair Value Sensitivities Related to Level 3 Unobservable Inputs We utilize the market approach to measure the fair value of our commodity contracts. The significant unobservable inputs used in this approach to fair value are longer dated price quotes. Our sensitivity to these longer dated forward curve prices are presented in the table below. Significant changes in any of those inputs in isolation would result in significantly different fair value measurements, depending on our short or long position in contracts. March 31, 2023 Product Group Fair Value Valuation Techniques Unobservable Input Forward Weighted Average (a) (millions) Assets NGLs $ 15 Market approach Longer dated forward curve prices $0.21-$1.52 $0.86 Per gallon Natural gas $ 1 Market approach Longer dated forward curve prices $2.76-$5.24 $2.92 Per MMBtu Liabilities NGLs $ (2) Market approach Longer dated forward curve prices $0.21-$1.56 $0.96 Per gallon (a) Unobservable inputs were weighted by the instrument's notional amounts. Estimated Fair Value of Financial Instruments The fair value of accounts receivable and accounts payable are not materially different from their carrying amounts because of the short-term nature of these instruments or the stated rates approximating market rates. Derivative instruments are carried at fair value. We determine the fair value of our fixed-rate senior notes and junior subordinated notes based on quotes obtained from bond dealers. The carrying value of borrowings under the Credit Agreement and the Securitization Facility approximate fair value as their interest rates are based on prevailing market interest rates. We classify the fair values of our outstanding debt balances within Level 2 of the valuation hierarchy. As of March 31, 2023 and December 31, 2022, the carrying value and fair value of our total debt, including current maturities, were as follows: March 31, 2023 December 31, 2022 Carrying Value (a) Fair Value Carrying Value (a) Fair Value (millions) Total debt $ 4,908 $ 4,900 $ 4,874 $ 4,772 (a) Excludes unamortized issuance costs and finance lease liabilities. |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Notes Redemption On March 15, 2023, we repaid, at par, all $500 million of aggregate principal amount outstanding of our 3.875% Senior Notes due March 15, 2023 using borrowings under our Credit Facility and Securitization Facility. Credit Agreement We are party to a $1.4 billion unsecured revolving credit facility governed by the Credit Agreement that bears interest at either the term SOFR rate or the base rate plus, in each case, an applicable margin based on our credit rating. The Credit Agreement matures on March 18, 2027. The Credit Agreement also includes sustainability linked key performance indicators that increase or decrease the applicable margin and facility fee payable thereunder based on our safety performance relative to our peers and year-over-year change in our greenhouse gas emissions intensity rate. As of March 31, 2023, we had unused borrowing capacity of $1,173 million, net of $225 million of outstanding borrowings and $2 million of letters of credit, under the Credit Agreement, of which $1,173 million would have been available to borrow for working capital and other general partnership purposes based on the financial covenants set forth in the Credit Agreement. Except in the case of a default, amounts borrowed under our Credit Agreement will not become due prior to the March 18, 2027 maturity date. Accounts Receivable Securitization Facility The Securitization Facility provides for up to $350 million of borrowing capacity through August 2024 at an adjusted SOFR and includes an uncommitted option to increase the total commitments under the Securitization Facility by up to an additional $400 million. Under this Securitization Facility, certain of the Partnership’s wholly owned subsidiaries sell or contribute receivables to another of the Partnership’s consolidated subsidiaries, DCP Receivables, a bankruptcy-remote special purpose entity created for the sole purpose of the Securitization Facility. As of March 31, 2023, DCP Receivables had approximately $887 million of our accounts receivable securing borrowings of $350 million under the Securitization Facility. The maturities of our debt as of March 31, 2023 are as follows: Debt (millions) 2023 $ — 2024 350 2025 825 2026 — 2027 725 Thereafter 3,000 Total debt $ 4,900 |
Risk Management and Hedging Act
Risk Management and Hedging Activities (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management and Hedging Activities | Risk Management and Hedging Activities Our operations expose us to a variety of risks including but not limited to changes in the prices of commodities that we buy or sell, changes in interest rates, and the creditworthiness of each of our counterparties. We manage certain of these exposures with either physical or financial transactions. We have established a comprehensive risk management policy and a risk management committee (the “Risk Management Committee”), to monitor and manage market risks associated with commodity prices and counterparty credit. The Risk Management Committee is composed of senior executives who receive regular briefings on positions and exposures, credit exposures and overall risk management in the context of market activities. The Risk Management Committee is responsible for the overall management of credit risk and commodity price risk, including monitoring exposure limits. Collateral As of March 31, 2023, we had cash deposits of $32 million, included in collateral cash deposits in our condensed consolidated balance sheets. Additionally, as of March 31, 2023, we held letters of credit of $49 million from counterparties to secure their future performance under financial or physical contracts. Collateral amounts held or posted may be fixed or may vary, depending on the value of the underlying contracts, and could cover normal purchases and sales, services, trading and hedging contracts. In many cases, we and our counterparties have publicly disclosed credit ratings, which may impact the amounts of collateral requirements. Offsetting Certain of our financial derivative instruments are subject to a master netting or similar arrangement, whereby we may elect to settle multiple positions with an individual counterparty through a single net payment. Each of our individual derivative instruments are presented on a gross basis on the condensed consolidated balance sheets, regardless of our ability to net settle our positions. Instruments that are governed by agreements that include net settle provisions allow final settlement, when presented with a termination event, of outstanding amounts by extinguishing the mutual debts owed between the parties in exchange for a net amount due. We have trade receivables and payables associated with derivative instruments, subject to master netting or similar agreements, which are not included in the table below. The following summarizes the gross and net amounts of our derivative instruments: March 31, 2023 December 31, 2022 Gross Amounts Amounts Not Net Gross Amounts Amounts Not Net (millions) Assets: Commodity derivatives $ 107 $ (3) $ 104 $ 166 $ — $ 166 Liabilities: Commodity derivatives $ (88) $ 3 $ (85) $ (183) $ — $ (183) Summarized Derivative Information The fair value of our derivative instruments that are marked-to-market each period, as well as the location of each within our condensed consolidated balance sheets, by major category, is summarized below. We have no derivative instruments that are designated as hedging instruments for accounting purposes as of March 31, 2023 and December 31, 2022. Balance Sheet Line Item March 31, December 31, Balance Sheet Line Item March 31, December 31, (millions) (millions) Derivative Assets Not Designated as Hedging Instruments: Derivative Liabilities Not Designated as Hedging Instruments: Commodity derivatives: Commodity derivatives: Unrealized gains on derivative instruments — current $ 87 $ 140 Unrealized losses on derivative instruments — current $ (68) $ (148) Unrealized gains on derivative instruments — long-term 20 26 Unrealized losses on derivative instruments — long-term (20) (35) Total $ 107 $ 166 Total $ (88) $ (183) For the three months ended March 31, 2023 and 2022, no derivative losses attributable to the ineffective portion or to amounts excluded from effectiveness testing were recognized in trading and marketing gains or losses, net or interest expense in our condensed consolidated statements of operations. Changes in the value of derivative instruments, for which the hedge method of accounting has not been elected from one period to the next, are recorded in the condensed consolidated statements of operations. The following summarizes these amounts and the location within the condensed consolidated statements of operations that such amounts are reflected: Commodity Derivatives: Statements of Operations Line Item Three Months Ended March 31, 2023 2022 (millions) Realized gains (losses) $ 47 $ (59) Unrealized gains (losses) 40 (176) Trading and marketing gains (losses), net $ 87 $ (235) We do not have any derivative financial instruments that are designated as a hedge of a net investment. The following tables represent, by commodity type, our net long or short positions that are expected to partially or entirely settle in each respective year. To the extent that we have long dated derivative positions that span multiple calendar years, the contract will appear in more than one line item in the tables below. March 31, 2023 Crude Oil Natural Gas Natural Gas Natural Gas Year of Expiration Net Short Net Short Position Net Long (Short) Net (Short) Long Position 2023 — (21,590,600) 1,065,818 (4,875,000) 2024 — (7,100,000) (85,500) (5,630,000) 2025 — — (1,000) 2,072,500 2026 — — — 535,000 March 31, 2022 Crude Oil Natural Gas Natural Gas Natural Gas Year of Expiration Net Short Net Short Position Net Short Net (Short) Long 2022 (1,047,000) (56,954,500) (5,419,927) (5,217,500) 2023 (1,526,000) (1,825,000) (1,393,000) (830,000) 2024 (360,000) (2,745,000) (1,335,000) (2,280,000) 2025 — — (1,440,000) 4,967,500 2026 — — (1,440,000) 535,000 2027 — — (360,000) — |
Partnership Equity and Distribu
Partnership Equity and Distributions (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Partnership Equity and Distributions | Partnership Equity and Distributions Common Units — During the three months ended March 31, 2023 and 2022, we issued no common units pursuant to our at-the-market program. As of March 31, 2023, $750 million of common units remained available for sale pursuant to our at-the-market program. Our general partner and DCP Midstream LLC are entitled to a percentage of all quarterly distributions equal to their limited partner interest of approximately 56% as of March 31, 2023. Distributions — The following table presents our cash distributions paid in 2023: Payment Date Per Unit Total Cash (millions) Distributions to common unitholders February 14, 2023 $ 0.43 $ 90 Distributions to Series B Preferred unitholders March 15, 2023 $ 0.4922 $ 3 Distributions to Series C Preferred unitholders January 17, 2023 $ 0.4969 $ 2 |
Net Income or Loss per Limited
Net Income or Loss per Limited Partner Unit (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income or Loss per Limited Partner Unit | Net Income or Loss per Limited Partner UnitWe have the ability to elect to settle certain restricted phantom units at our discretion in either cash or common units. For a portion of restricted phantom units granted, we have the ability and intent to settle vested units through the issuance of common units. Basic and diluted net income per limited partner unit was calculated as follows for the periods indicated: Three Months Ended March 31, 2023 2022 (millions, except per unit amounts) Net income allocable to limited partners $ 206 $ 66 Weighted average limited partner units outstanding, basic 208,555,882 208,378,947 Dilutive effects of nonvested restricted phantom units 32,672 422,705 Weighted average limited partner units outstanding, diluted 208,588,554 208,801,652 Net income per limited partner unit, basic and diluted $ 0.99 $ 0.32 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Litigation — We are not a party to any material legal proceedings, but are a party to various administrative and regulatory proceedings and commercial disputes that have arisen in the ordinary course of our business. Management currently believes that the ultimate resolution of the foregoing matters, taken as a whole, and after consideration of amounts accrued, insurance coverage or other indemnification arrangements, will not have a material adverse effect on our results of operations, financial position, or cash flow. Insurance — Our insurance coverage is carried with third-party insurers and with an affiliate of Phillips 66. Our insurance coverage includes: (i) general liability insurance covering third-party exposures; (ii) statutory workers’ compensation insurance; (iii) automobile liability insurance for all owned, non-owned and hired vehicles; (iv) excess liability insurance above the established primary limits for general liability and automobile liability insurance; (v) property insurance, which covers the replacement value of real and personal property and includes business interruption; and (vi) insurance covering our directors and officers for acts related to our business activities. All coverage is subject to certain limits and deductibles, the terms and conditions of which are common for companies with similar types of operations. Environment, Health and Safety — The operation of pipelines, plants and other facilities for gathering, transporting, processing, treating, fractionating, or storing natural gas, NGLs and other products is subject to stringent and complex laws and regulations pertaining to the environment, health and safety. As an owner or operator of these facilities, we must comply with laws and regulations at the federal, state and, in some cases, local levels that relate to worker health and safety, public health and safety, pipeline safety, air and water quality, solid and hazardous waste management and disposal, and other environmental matters. The cost of planning, designing, constructing and operating pipelines, plants, and other facilities incorporates compliance with environmental laws and regulations, health and safety standards applicable to workers and the public, and safety standards applicable to our various facilities. In addition, there is increasing focus from (i) regulatory bodies and communities, and through litigation, on hydraulic fracturing as well as general oil and gas production facilities and the real or perceived environmental or public health impacts of these activities, which indirectly presents some risk to our available supply of natural gas and the resulting supply of NGLs; (ii) regulatory bodies regarding pipeline system safety which could impose additional regulatory burdens and increase the cost of our operations; (iii) state and federal regulatory agencies regarding the emission of greenhouse gases and other air emissions associated with our operations or the materials managed as part of our business, which could impose regulatory burdens and increase the cost of our operations; and (iv) regulatory bodies and communities that could prevent or delay the development of fossil fuel energy infrastructure such as pipelines, plants, and other facilities used in our business. Failure to comply with these various health, safety and environmental 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. Management believes that, based on currently known information, compliance with these existing laws and regulations will not have a material adverse effect on our results of operations, financial position or cash flows. The following pending proceedings involve governmental authorities as a party under federal, state, and local laws regulating the discharge of materials into the environment. We have elected to disclose matters where we reasonably believe such proceeding would result in monetary sanctions, exclusive of interest and costs, of $1 million or more. It is not possible for us to predict the final outcome of these pending proceedings; however, we do not expect the outcome of one or more of these proceedings to have a material adverse effect on our results of operations, financial position, or cash flows: • In 2018, the Colorado Department of Public Health and Environment (“CDPHE”) issued a Compliance Advisory in relation to an improperly permitted facility flare and related air emissions from flare operations at one of our gas processing plants, which we had self-disclosed to CDPHE in December 2017. Following information exchanges and discussions with CDPHE, a resolution was proposed pursuant to which the plant's air permit would be revised to include the flare and emissions limits for such flare in addition to us paying an administrative penalty as well as an economic benefit payment generally covering the period when the flare was required to be included in the facility air permit. A revised air permit was issued in May 2019, but the parties had not yet entered into a final settlement agreement to complete the matter. Subsequently, in July 2020 CDPHE issued a Notice of Violation in relation to amine treater emissions at this gas processing plant, which we had self-disclosed to CDPHE in April 2020. We are still exchanging information and holding discussions with CDPHE as to this and the foregoing flare-related enforcement matter, including possible settlement terms, although these matters, which have since been combined, may end up in formal legal proceedings. It is possible that resolution of this matter may include an administrative penalty and economic benefit payment, further revising the facility air permit, or installation of emissions management equipment, or a combination of these, that could, in the aggregate, exceed the disclosure threshold amount described above, although we do not believe that resolution of this matter would have a material adverse effect on our results of operations, financial position, or cash flows. |
Restructuring (Notes)
Restructuring (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Costs We undertook restructuring actions, as well as other transformation and integration efforts as part of the Realignment Transaction. During the three months ended March 31, 2023, we incurred $10 million in severance and other employee related cost. The following table presents a rollforward of the Company's restructuring liability as of March 31, 2023, which is primarily included in Other current liabilities in the condensed consolidated balance sheets: (millions) Balance as of January 1, 2023 $ 15 Severance and employee related charges 10 Other charges — Cash payments (12) Balance as of March 31, 2023 $ 13 |
Business Segments (Notes)
Business Segments (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Our operations are organized into two reportable segments: (i) Logistics and Marketing and (ii) Gathering and Processing. These segments are monitored separately by management for performance against our internal forecast and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Our Gathering and Processing reportable segment includes operating segments that have been aggregated based on the nature of the products and services provided. Adjusted gross margin is a performance measure utilized by management to monitor the operations of each segment. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies included in Note 2 of the Notes to the Consolidated Financial Statements in "Financial Statements and Supplementary Data" included as Item 8 in our Annual Report on Form 10-K for the year ended December 31, 2022. Our Logistics and Marketing segment includes transporting, trading, marketing, storing natural gas and NGLs, and fractionating NGLs. Our Gathering and Processing segment consists of gathering, compressing, treating, processing natural gas, producing and fractionating NGLs, and recovering condensate. The remainder of our business operations is presented as “Other,” and consists of unallocated corporate costs. Elimination of inter-segment transactions are reflected in the Eliminations column. The following tables set forth our segment information: Three Months Ended March 31, 2023: Logistics and Marketing Gathering and Processing Other Eliminations Total (millions) Total operating revenue $ 2,392 $ 1,766 $ — $ (1,432) $ 2,726 Adjusted gross margin (a) $ 54 $ 444 $ — $ — $ 498 Operating and maintenance expense (9) (182) (6) — (197) General and administrative expense (2) (4) (74) — (80) Depreciation and amortization expense (2) (84) (4) — (90) Restructuring costs — — (10) — (10) Earnings from unconsolidated affiliates 154 6 — — 160 Interest expense — — (68) — (68) Income tax expense — — (1) — (1) Net income (loss) $ 195 $ 180 $ (163) $ — $ 212 Net income attributable to noncontrolling interests — (1) — — (1) Net income (loss) attributable to partners $ 195 $ 179 $ (163) $ — $ 211 Non-cash derivative mark-to-market $ (5) $ 45 $ — $ — $ 40 Non-cash lower of cost or net realizable value adjustments $ 22 $ — $ — $ — $ 22 Capital expenditures $ — $ 79 $ 2 $ — $ 81 Three Months Ended March 31, 2022: Logistics and Marketing Gathering and Processing Other Eliminations Total (millions) Total operating revenue $ 3,163 $ 2,106 $ — $ (1,894) $ 3,375 Adjusted gross margin (a) $ 16 $ 284 $ — $ — $ 300 Operating and maintenance expense (8) (140) (4) — (152) General and administrative expense (1) (4) (50) — (55) Depreciation and amortization expense (3) (81) (6) — (90) Gain on sale of assets, net — 7 — — 7 Earnings from unconsolidated affiliates 137 6 — — 143 Interest expense — — (71) — (71) Income tax expense — — (1) — (1) Net income (loss) $ 141 $ 72 $ (132) $ — $ 81 Net income attributable to noncontrolling interests — (1) — — (1) Net income (loss) attributable to partners $ 141 $ 71 $ (132) $ — $ 80 Non-cash derivative mark-to-market $ (45) $ (131) $ — $ — $ (176) Capital expenditures $ 2 $ 20 $ 1 $ — $ 23 Investments in unconsolidated affiliates, net $ — $ 1 $ — $ — $ 1 March 31, December 31, 2023 2022 (millions) Segment long-term assets: Gathering and Processing $ 7,603 $ 7,594 Logistics and Marketing 3,788 3,814 Other (b) 223 224 Total long-term assets 11,614 11,632 Current assets 1,270 1,702 Total assets $ 12,884 $ 13,334 (a) Adjusted gross margin consists of total operating revenues, including commodity derivative activity, less purchases and related costs. Adjusted gross margin is viewed as a non-GAAP financial measure under the rules of the SEC, but is included as a supplemental disclosure because it is a primary performance measure used by management as it represents the results of product sales versus product purchases. As an indicator of our operating performance, adjusted gross margin should not be considered an alternative to, or more meaningful than, net income, net cash provided by operating activities or gross margin as determined in accordance with GAAP. Our adjusted gross margin may not be comparable to a similarly titled measure of another company because other entities may not calculate adjusted gross margin in the same manner. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Months Ended March 31, 2023 2022 (millions) Cash paid for interest: Cash paid for interest, net of amounts capitalized $ 81 $ 84 Cash paid for income taxes, net of income tax refunds $ 2 $ (1) Non-cash investing and financing activities: Property, plant and equipment acquired with accounts payable and accrued liabilities $ 32 $ 7 Other non-cash activities: Right-of-use assets obtained in exchange for operating and finance lease liabilities $ 16 $ 7 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Junior Notes Redemption — On April 19, 2023, we announced our intent to redeem, at par, prior to maturity all $550 million of aggregate principal amount outstanding of our 5.850% Junior Notes due May 2043 on or about May 21, 2023. We expect to use borrowings under our Revolving Credit Facility and AR Securitization Facility. Distributions — On April 19, 2023, we announced that the board of directors of the General Partner declared a quarterly distribution on our common units of $0.43 per common unit. The distribution will be paid on May 15, 2023 to unitholders of record on May 1, 2023. Also on April 19, 2023, the board of directors of the General Partner declared a quarterly distribution on our Series B and Series C Preferred Units of $0.4922 and $0.4969 per unit, respectively. The Series B distribution will be paid on June 15, 2023 to unitholders of record on June 1, 2023. The Series C distribution will be paid on July 17, 2023 to unitholders of record on July 3, 2023. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | The condensed consolidated financial statements have been prepared in accordance with GAAP. All intercompany balances and transactions have been eliminated in consolidation. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | Revenue Recognition We disaggregate our revenue from contracts with customers by type of contract for each of our reportable segments, as we believe it best depicts the nature, timing and uncertainty of our revenue and cash flows. The following tables set forth our revenue by those categories: Three Months Ended March 31, 2023 Logistics and Marketing Gathering and Processing Eliminations Total (millions) Sales of natural gas $ 802 $ 680 $ (669) $ 813 Sales of NGLs and condensate (a) 1,528 898 (763) 1,663 Transportation, processing and other 19 144 — 163 Trading and marketing gains, net (b) 43 44 — 87 Total operating revenues $ 2,392 $ 1,766 $ (1,432) $ 2,726 (a) Includes $479 million for the three months ended March 31, 2023 of revenues from physical sales contracts and buy-sell exchange transactions in our Logistics and Marketing segment, which is net of $725 million of buy-sell purchases related to buy-sell revenues of $796 million which are not within the scope of Topic 606. (b) Not within the scope of Topic 606. Three Months Ended March 31, 2022 Logistics and Marketing Gathering and Processing Eliminations Total (millions) Sales of natural gas $ 1,063 $ 882 $ (821) $ 1,124 Sales of NGLs and condensate (a) 2,122 1,282 (1,073) 2,331 Transportation, processing and other 19 136 — 155 Trading and marketing losses, net (b) (41) (194) — (235) Total operating revenues $ 3,163 $ 2,106 $ (1,894) $ 3,375 (a) Includes $676 million of revenues from physical sales contracts and buy-sell exchange transactions in our Logistics and Marketing segment for the three months ended March 31, 2022, which is net of $756 million of buy-sell purchases related to buy-sell revenues of $851 million which are not within the scope of Topic 606. (b) Not within the scope of Topic 606. The revenue expected to be recognized in the future related to performance obligations that are not satisfied is approximately $370 million as of March 31, 2023. Our remaining performance obligations primarily consist of minimum volume commitment fee arrangements and are expected to be recognized through 2031 with a weighted average remaining life of three years as of March 31, 2023. As a practical expedient permitted by Topic 606, this amount excludes variable consideration as well as remaining performance obligations that have original expected durations of one year or less, as applicable. Our remaining performance obligations also exclude estimates of variable rate escalation clauses in our contracts with customers. |
Revenue from External Customers by Products and Services [Table Text Block] | Revenue Recognition We disaggregate our revenue from contracts with customers by type of contract for each of our reportable segments, as we believe it best depicts the nature, timing and uncertainty of our revenue and cash flows. The following tables set forth our revenue by those categories: Three Months Ended March 31, 2023 Logistics and Marketing Gathering and Processing Eliminations Total (millions) Sales of natural gas $ 802 $ 680 $ (669) $ 813 Sales of NGLs and condensate (a) 1,528 898 (763) 1,663 Transportation, processing and other 19 144 — 163 Trading and marketing gains, net (b) 43 44 — 87 Total operating revenues $ 2,392 $ 1,766 $ (1,432) $ 2,726 (a) Includes $479 million for the three months ended March 31, 2023 of revenues from physical sales contracts and buy-sell exchange transactions in our Logistics and Marketing segment, which is net of $725 million of buy-sell purchases related to buy-sell revenues of $796 million which are not within the scope of Topic 606. (b) Not within the scope of Topic 606. Three Months Ended March 31, 2022 Logistics and Marketing Gathering and Processing Eliminations Total (millions) Sales of natural gas $ 1,063 $ 882 $ (821) $ 1,124 Sales of NGLs and condensate (a) 2,122 1,282 (1,073) 2,331 Transportation, processing and other 19 136 — 155 Trading and marketing losses, net (b) (41) (194) — (235) Total operating revenues $ 3,163 $ 2,106 $ (1,894) $ 3,375 (a) Includes $676 million of revenues from physical sales contracts and buy-sell exchange transactions in our Logistics and Marketing segment for the three months ended March 31, 2022, which is net of $756 million of buy-sell purchases related to buy-sell revenues of $851 million which are not within the scope of Topic 606. (b) Not within the scope of Topic 606. The revenue expected to be recognized in the future related to performance obligations that are not satisfied is approximately $370 million as of March 31, 2023. Our remaining performance obligations primarily consist of minimum volume commitment fee arrangements and are expected to be recognized through 2031 with a weighted average remaining life of three years as of March 31, 2023. As a practical expedient permitted by Topic 606, this amount excludes variable consideration as well as remaining performance obligations that have original expected durations of one year or less, as applicable. Our remaining performance obligations also exclude estimates of variable rate escalation clauses in our contracts with customers. |
Agreements and Transactions w_2
Agreements and Transactions with Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transaction [Line Items] | |
Schedule of Fees Incurred and Other Fees Paid | The following table summarizes employee related costs that were charged by DCP Midstream, LLC to the Partnership that are included in the condensed consolidated statements of operations: Three Months Ended March 31, 2023 2022 (millions) Employee related costs charged by DCP Midstream, LLC Operating and maintenance expense $ 43 $ 40 General and administrative expense $ 58 $ 33 Restructuring costs $ 10 $ — |
Summary of Transactions with Affiliates | The following table summarizes our transactions with affiliates: Three Months Ended March 31, 2023 2022 (millions) Phillips 66 (including its affiliates): Sales of natural gas, NGLs and condensate to affiliates $ 704 $ 1,095 Purchases and related costs from affiliates $ 75 $ 62 Transportation and related costs from affiliates $ 41 $ 43 Operating and maintenance and general administrative expenses $ 4 $ 3 Enbridge (including its affiliates): Sales of natural gas, NGLs and condensate to affiliates $ 1 $ — Purchases and related costs from affiliates $ — $ 13 Unconsolidated affiliates: Sales of natural gas, NGLs and condensate to affiliates $ 28 $ 32 Transportation, processing, and other to affiliates $ 4 $ 4 Purchases and related costs from affiliates $ 22 $ 24 Transportation and related costs from affiliates $ 238 $ 214 We had balances with affiliates as follows: March 31, 2023 December 31, 2022 (millions) Phillips 66 (including its affiliates): Accounts receivable $ 362 $ 343 Accounts payable $ 195 $ 167 Other assets $ — $ 1 Enbridge (including its affiliates): Accounts receivable $ 1 $ 1 Accounts payable $ — $ 1 Unconsolidated affiliates: Accounts receivable $ 26 $ 16 Accounts payable $ 103 $ 87 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories were as follows: March 31, 2023 December 31, 2022 (millions) Natural gas $ 19 $ 47 NGLs 9 36 Total inventories $ 28 $ 83 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Classification of Property, Plant and Equipment | A summary of property, plant and equipment by classification is as follows: Depreciable March 31, 2023 December 31, 2022 (millions) Gathering and transmission systems 20 — 50 Years $ 7,896 $ 7,865 Processing, storage and terminal facilities 35 — 60 Years 5,159 5,138 Other 3 — 30 Years 564 563 Finance lease assets 5 — 35 Years 32 32 Construction work in progress 215 183 Property, plant and equipment 13,866 13,781 Accumulated depreciation (6,107) (6,018) Property, plant and equipment, net $ 7,759 $ 7,763 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | The following table summarizes our investments in unconsolidated affiliates: Carrying Value as of Percentage March 31, 2023 December 31, 2022 (millions) DCP Sand Hills Pipeline, LLC 66.67% $ 1,658 $ 1,653 DCP Southern Hills Pipeline, LLC 66.67% 710 713 Gulf Coast Express LLC 25.00% 395 408 Front Range Pipeline LLC 33.33% 189 191 Texas Express Pipeline LLC 10.00% 90 91 Mont Belvieu 1 Fractionator 20.00% 9 7 Discovery Producer Services LLC 40.00% 214 219 Cheyenne Connector, LLC 50.00% 142 143 Mont Belvieu Enterprise Fractionator 12.50% 29 28 Other Various 22 22 Total investments in unconsolidated affiliates $ 3,458 $ 3,475 |
Schedule Of Earnings From Investment In Unconsolidated Affiliates [Table Text Block] | Earnings from investments in unconsolidated affiliates were as follows: Three Months Ended March 31, 2023 2022 (millions) DCP Sand Hills Pipeline, LLC $ 87 $ 71 DCP Southern Hills Pipeline, LLC 25 24 Gulf Coast Express LLC 17 16 Front Range Pipeline LLC 11 10 Texas Express Pipeline LLC 5 5 Mont Belvieu 1 Fractionator 4 4 Discovery Producer Services LLC 6 6 Cheyenne Connector, LLC 3 4 Mont Belvieu Enterprise Fractionator 1 2 Other 1 1 Total earnings from unconsolidated affiliates $ 160 $ 143 |
Equity Method Investment Summarized Financial Information, Statement of Operations [Table Text Block] | The following tables summarize the combined financial information of our investments in unconsolidated affiliates: Three Months Ended March 31, 2023 2022 (millions) Statements of operations: Operating revenue $ 595 $ 563 Operating expenses $ 222 $ 217 Net income $ 379 $ 344 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured On Recurring Basis Unobservable Input Reconciliation | Commodity Derivative Instruments Current Long-Term Current Long-Term (millions) Three months ended March 31, 2023 (a): Beginning balance $ 17 $ 3 $ (2) $ (3) Net unrealized gains (losses) included in earnings 2 (1) — 1 Transfers out of Level 3 — (1) — 1 Settlements (4) — 1 — Ending balance $ 15 $ 1 $ (1) $ (1) Net unrealized gains on derivatives still held included in earnings $ 2 $ — $ — $ — Three months ended March 31, 2022 (a): Beginning balance $ — $ 2 $ (3) $ (4) Net unrealized gains (losses) included in earnings 2 3 (12) (6) Transfers out of Level 3 — (1) 1 5 Settlements — — 4 — Ending balance $ 2 $ 4 $ (10) $ (5) Net unrealized gains (losses) on derivatives still held included in earnings $ 2 $ 2 $ (8) $ (3) (a) There were no purchases, issuances or sales of derivatives or transfers into Level 3 for the three months ended March 31, 2023 and 2022. |
Schedule of Valuation Processes | March 31, 2023 Product Group Fair Value Valuation Techniques Unobservable Input Forward Weighted Average (a) (millions) Assets NGLs $ 15 Market approach Longer dated forward curve prices $0.21-$1.52 $0.86 Per gallon Natural gas $ 1 Market approach Longer dated forward curve prices $2.76-$5.24 $2.92 Per MMBtu Liabilities NGLs $ (2) Market approach Longer dated forward curve prices $0.21-$1.56 $0.96 Per gallon |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | March 31, 2023 and December 31, 2022, the carrying value and fair value of our total debt, including current maturities, were as follows: March 31, 2023 December 31, 2022 Carrying Value (a) Fair Value Carrying Value (a) Fair Value (millions) Total debt $ 4,908 $ 4,900 $ 4,874 $ 4,772 |
Financial Instruments Carried at Fair Value | March 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (millions) Current assets: Commodity derivatives $ 1 $ 71 $ 15 $ 87 $ 2 $ 121 $ 17 $ 140 Short-term investments (a) $ — $ 1 $ — $ 1 $ — $ 1 $ — $ 1 Long-term assets: Commodity derivatives $ — $ 19 $ 1 $ 20 $ — $ 23 $ 3 $ 26 Investments in marketable securities (a) $ 45 $ — $ — $ 45 $ 42 $ — $ — $ 42 Current liabilities: Commodity derivatives $ (1) $ (66) $ (1) $ (68) $ (4) $ (142) $ (2) $ (148) Long-term liabilities: Commodity derivatives $ — $ (19) $ (1) $ (20) $ — $ (32) $ (3) $ (35) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Future Maturities of Long-Term Debt | The maturities of our debt as of March 31, 2023 are as follows: Debt (millions) 2023 $ — 2024 350 2025 825 2026 — 2027 725 Thereafter 3,000 Total debt $ 4,900 |
Risk Management and Hedging A_2
Risk Management and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Gross and Net Amounts of Derivative Instruments | March 31, 2023 December 31, 2022 Gross Amounts Amounts Not Net Gross Amounts Amounts Not Net (millions) Assets: Commodity derivatives $ 107 $ (3) $ 104 $ 166 $ — $ 166 Liabilities: Commodity derivatives $ (88) $ 3 $ (85) $ (183) $ — $ (183) |
Schedule of Designated and Non-Designated Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of our derivative instruments that are marked-to-market each period, as well as the location of each within our condensed consolidated balance sheets, by major category, is summarized below. We have no derivative instruments that are designated as hedging instruments for accounting purposes as of March 31, 2023 and December 31, 2022. Balance Sheet Line Item March 31, December 31, Balance Sheet Line Item March 31, December 31, (millions) (millions) Derivative Assets Not Designated as Hedging Instruments: Derivative Liabilities Not Designated as Hedging Instruments: Commodity derivatives: Commodity derivatives: Unrealized gains on derivative instruments — current $ 87 $ 140 Unrealized losses on derivative instruments — current $ (68) $ (148) Unrealized gains on derivative instruments — long-term 20 26 Unrealized losses on derivative instruments — long-term (20) (35) Total $ 107 $ 166 Total $ (88) $ (183) |
Schedule of Changes in Derivative Instruments Not Designated as Hedging Instruments | Commodity Derivatives: Statements of Operations Line Item Three Months Ended March 31, 2023 2022 (millions) Realized gains (losses) $ 47 $ (59) Unrealized gains (losses) 40 (176) Trading and marketing gains (losses), net $ 87 $ (235) |
Schedule of Net Long or Short Positions Expected to be Realized | March 31, 2023 Crude Oil Natural Gas Natural Gas Natural Gas Year of Expiration Net Short Net Short Position Net Long (Short) Net (Short) Long Position 2023 — (21,590,600) 1,065,818 (4,875,000) 2024 — (7,100,000) (85,500) (5,630,000) 2025 — — (1,000) 2,072,500 2026 — — — 535,000 March 31, 2022 Crude Oil Natural Gas Natural Gas Natural Gas Year of Expiration Net Short Net Short Position Net Short Net (Short) Long 2022 (1,047,000) (56,954,500) (5,419,927) (5,217,500) 2023 (1,526,000) (1,825,000) (1,393,000) (830,000) 2024 (360,000) (2,745,000) (1,335,000) (2,280,000) 2025 — — (1,440,000) 4,967,500 2026 — — (1,440,000) 535,000 2027 — — (360,000) — |
Partnership Equity and Distri_2
Partnership Equity and Distributions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Cash Distribution | Payment Date Per Unit Total Cash (millions) Distributions to common unitholders February 14, 2023 $ 0.43 $ 90 Distributions to Series B Preferred unitholders March 15, 2023 $ 0.4922 $ 3 Distributions to Series C Preferred unitholders January 17, 2023 $ 0.4969 $ 2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended March 31, 2023 2022 (millions, except per unit amounts) Net income allocable to limited partners $ 206 $ 66 Weighted average limited partner units outstanding, basic 208,555,882 208,378,947 Dilutive effects of nonvested restricted phantom units 32,672 422,705 Weighted average limited partner units outstanding, diluted 208,588,554 208,801,652 Net income per limited partner unit, basic and diluted $ 0.99 $ 0.32 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table presents a rollforward of the Company's restructuring liability as of March 31, 2023, which is primarily included in Other current liabilities in the condensed consolidated balance sheets: (millions) Balance as of January 1, 2023 $ 15 Severance and employee related charges 10 Other charges — Cash payments (12) Balance as of March 31, 2023 $ 13 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Three Months Ended March 31, 2023: Logistics and Marketing Gathering and Processing Other Eliminations Total (millions) Total operating revenue $ 2,392 $ 1,766 $ — $ (1,432) $ 2,726 Adjusted gross margin (a) $ 54 $ 444 $ — $ — $ 498 Operating and maintenance expense (9) (182) (6) — (197) General and administrative expense (2) (4) (74) — (80) Depreciation and amortization expense (2) (84) (4) — (90) Restructuring costs — — (10) — (10) Earnings from unconsolidated affiliates 154 6 — — 160 Interest expense — — (68) — (68) Income tax expense — — (1) — (1) Net income (loss) $ 195 $ 180 $ (163) $ — $ 212 Net income attributable to noncontrolling interests — (1) — — (1) Net income (loss) attributable to partners $ 195 $ 179 $ (163) $ — $ 211 Non-cash derivative mark-to-market $ (5) $ 45 $ — $ — $ 40 Non-cash lower of cost or net realizable value adjustments $ 22 $ — $ — $ — $ 22 Capital expenditures $ — $ 79 $ 2 $ — $ 81 Three Months Ended March 31, 2022: Logistics and Marketing Gathering and Processing Other Eliminations Total (millions) Total operating revenue $ 3,163 $ 2,106 $ — $ (1,894) $ 3,375 Adjusted gross margin (a) $ 16 $ 284 $ — $ — $ 300 Operating and maintenance expense (8) (140) (4) — (152) General and administrative expense (1) (4) (50) — (55) Depreciation and amortization expense (3) (81) (6) — (90) Gain on sale of assets, net — 7 — — 7 Earnings from unconsolidated affiliates 137 6 — — 143 Interest expense — — (71) — (71) Income tax expense — — (1) — (1) Net income (loss) $ 141 $ 72 $ (132) $ — $ 81 Net income attributable to noncontrolling interests — (1) — — (1) Net income (loss) attributable to partners $ 141 $ 71 $ (132) $ — $ 80 Non-cash derivative mark-to-market $ (45) $ (131) $ — $ — $ (176) Capital expenditures $ 2 $ 20 $ 1 $ — $ 23 Investments in unconsolidated affiliates, net $ — $ 1 $ — $ — $ 1 March 31, December 31, 2023 2022 (millions) Segment long-term assets: Gathering and Processing $ 7,603 $ 7,594 Logistics and Marketing 3,788 3,814 Other (b) 223 224 Total long-term assets 11,614 11,632 Current assets 1,270 1,702 Total assets $ 12,884 $ 13,334 (a) Adjusted gross margin consists of total operating revenues, including commodity derivative activity, less purchases and related costs. Adjusted gross margin is viewed as a non-GAAP financial measure under the rules of the SEC, but is included as a supplemental disclosure because it is a primary performance measure used by management as it represents the results of product sales versus product purchases. As an indicator of our operating performance, adjusted gross margin should not be considered an alternative to, or more meaningful than, net income, net cash provided by operating activities or gross margin as determined in accordance with GAAP. Our adjusted gross margin may not be comparable to a similarly titled measure of another company because other entities may not calculate adjusted gross margin in the same manner. |
Statement of Cash Flows, Supple
Statement of Cash Flows, Supplemental Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |
Summary of Supplemental Cash Flow Information | Three Months Ended March 31, 2023 2022 (millions) Cash paid for interest: Cash paid for interest, net of amounts capitalized $ 81 $ 84 Cash paid for income taxes, net of income tax refunds $ 2 $ (1) Non-cash investing and financing activities: Property, plant and equipment acquired with accounts payable and accrued liabilities $ 32 $ 7 Other non-cash activities: Right-of-use assets obtained in exchange for operating and finance lease liabilities $ 16 $ 7 |
Description of Business and B_3
Description of Business and Basis of Presentation - Additional Information (Detail) - $ / shares | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2023 | Jan. 05, 2023 | |
Business Acquisition [Line Items] | |||
Business Acquisition, Share Price | $ 41.75 | ||
Investments in Greater Than 20% | |||
Business Acquisition [Line Items] | |||
Equity method ownership investment (as percent) | 20% | ||
Investments in Less Than 20% | |||
Business Acquisition [Line Items] | |||
Equity method ownership investment (as percent) | 20% | ||
DCP Midstream, LLC | DCP Midstream GP, LLC | |||
Business Acquisition [Line Items] | |||
Ownership interest percentage by parent | 100% | ||
DCP Midstream, LLC | DCP Midstream LP | |||
Business Acquisition [Line Items] | |||
Ownership interest percentage by parent | 56% | ||
Phillips 66 | DCP Midstream LP | |||
Business Acquisition [Line Items] | |||
Ownership interest percentage by parent | 43.30% | ||
Limited Liability Company (LLC) Or Limited Partnership (LP) Managing Member Or General Partner Ownership Interest Post Merger | 86.80% | ||
Enbridge | DCP Midstream LP | |||
Business Acquisition [Line Items] | |||
Limited Liability Company (LLC) Or Limited Partnership (LP) Managing Member Or General Partner Ownership Interest Post Merger | 13.20% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Trading and marketing gains (losses), net | $ 87 | $ (235) |
Total operating revenues | 2,726 | 3,375 |
Revenue, Remaining Performance Obligation, Amount | $ 370 | |
Revenue, Performance Obligation, Description of Timing | three years | |
Revenue from contract with customer not within the scope of Topic 606 | $ 479 | 676 |
Buy-Sell Purchases | 725 | 756 |
Buy-Sell Revenues | 796 | 851 |
Natural Gas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | 813 | 1,124 |
NGLs and Condensate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | 1,663 | 2,331 |
Transportation, Processing and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | 163 | 155 |
Gathering and Processing | ||
Disaggregation of Revenue [Line Items] | ||
Trading and marketing gains (losses), net | 44 | (194) |
Total operating revenues | 1,766 | 2,106 |
Gathering and Processing | Natural Gas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | 680 | 882 |
Gathering and Processing | NGLs and Condensate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | 898 | 1,282 |
Gathering and Processing | Transportation, Processing and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | 144 | 136 |
Logistics and Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Trading and marketing gains (losses), net | 43 | (41) |
Total operating revenues | 2,392 | 3,163 |
Logistics and Marketing | Natural Gas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | 802 | 1,063 |
Logistics and Marketing | NGLs and Condensate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | 1,528 | 2,122 |
Logistics and Marketing | Transportation, Processing and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | 19 | 19 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Trading and marketing gains (losses), net | 0 | 0 |
Total operating revenues | (1,432) | (1,894) |
Eliminations | Natural Gas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | (669) | (821) |
Eliminations | NGLs and Condensate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | (763) | (1,073) |
Eliminations | Transportation, Processing and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales of natural gas, NGLs and condensate | $ 0 | $ 0 |
Agreements and Transactions w_3
Agreements and Transactions with Affiliates - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Expense | ||
Related Party Transaction [Line Items] | ||
Employee related costs | $ 43 | $ 40 |
General and Administrative Expense | ||
Related Party Transaction [Line Items] | ||
Employee related costs | 58 | 33 |
Restructuring costs | ||
Related Party Transaction [Line Items] | ||
Employee related costs | $ 10 | $ 0 |
Agreements and Transactions w_4
Agreements and Transactions with Affiliates - Transactions with Affiliates (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Operating and maintenance expense | $ 197 | $ 152 |
Affiliated Entity | Phillips 66 | ||
Related Party Transaction [Line Items] | ||
Operating and maintenance expense | 4 | 3 |
Natural Gas, NGLs and Condensate [Member] | Affiliated Entity | Unconsolidated Affiliates | ||
Related Party Transaction [Line Items] | ||
Sales of natural gas, NGLs and condensate | 28 | 32 |
Purchases and related costs | 22 | 24 |
Natural Gas, NGLs and Condensate [Member] | Affiliated Entity | Phillips 66 | ||
Related Party Transaction [Line Items] | ||
Sales of natural gas, NGLs and condensate | 704 | 1,095 |
Purchases and related costs | 75 | 62 |
Natural Gas, NGLs and Condensate [Member] | Affiliated Entity | Enbridge | ||
Related Party Transaction [Line Items] | ||
Sales of natural gas, NGLs and condensate | 1 | 0 |
Purchases and related costs | 0 | 13 |
Transportation, Processing and Other [Member] | ||
Related Party Transaction [Line Items] | ||
Sales of natural gas, NGLs and condensate | 163 | 155 |
Transportation, Processing and Other [Member] | Affiliated Entity | Unconsolidated Affiliates | ||
Related Party Transaction [Line Items] | ||
Sales of natural gas, NGLs and condensate | 4 | 4 |
Purchases and related costs | 238 | 214 |
Transportation, Processing and Other [Member] | Affiliated Entity | Phillips 66 | ||
Related Party Transaction [Line Items] | ||
Purchases and related costs | $ 41 | $ 43 |
Agreements and Transactions w_5
Agreements and Transactions with Affiliates - Balances with Affiliates (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Accounts receivable | $ 389 | $ 360 |
Accounts payable | 298 | 255 |
Unconsolidated Affiliates | ||
Related Party Transaction [Line Items] | ||
Accounts receivable | 26 | 16 |
Accounts payable | 103 | 87 |
Phillips 66 | ||
Related Party Transaction [Line Items] | ||
Accounts receivable | 362 | 343 |
Accounts payable | 195 | 167 |
Related Party Transaction, Due from (to) Related Party, Noncurrent | 0 | 1 |
Enbridge | ||
Related Party Transaction [Line Items] | ||
Accounts receivable | 1 | 1 |
Accounts payable | $ 0 | $ 1 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Components Of Inventory [Line Items] | ||
Total inventories | $ 28 | $ 83 |
Natural Gas [Member] | ||
Components Of Inventory [Line Items] | ||
Total inventories | 19 | 47 |
Natural Gas Liquids | ||
Components Of Inventory [Line Items] | ||
Total inventories | $ 9 | $ 36 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | ||
Lower of cost or net realizable value adjustment | $ 22 | $ 0 |
Property, Plant and Equipment -
Property, Plant and Equipment - Classification of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 13,866 | $ 13,781 |
Accumulated depreciation | (6,107) | (6,018) |
Property, plant and equipment, net | 7,759 | 7,763 |
Gathering and transmission systems | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 7,896 | 7,865 |
Gathering and transmission systems | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life of property, plant and equipment | 20 years | |
Gathering and transmission systems | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life of property, plant and equipment | 50 years | |
Processing, storage and terminal facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 5,159 | 5,138 |
Processing, storage and terminal facilities | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life of property, plant and equipment | 35 years | |
Processing, storage and terminal facilities | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life of property, plant and equipment | 60 years | |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 564 | 563 |
Other | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life of property, plant and equipment | 3 years | |
Other | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life of property, plant and equipment | 30 years | |
Finance lease assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 32 | 32 |
Finance lease assets [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life of property, plant and equipment | 5 years | |
Finance lease assets [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life of property, plant and equipment | 35 years | |
Construction work in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 215 | $ 183 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 89 | $ 89 |
Investments In Unconsolidated_3
Investments In Unconsolidated Affiliates - Investments In Unconsolidated Affiliates (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated affiliates | $ 3,458 | $ 3,475 |
DCP Sand Hills Pipeline, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method ownership investment (as percent) | 66.67% | |
Investments in unconsolidated affiliates | $ 1,658 | 1,653 |
DCP Southern Hills Pipeline, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method ownership investment (as percent) | 66.67% | |
Investments in unconsolidated affiliates | $ 710 | 713 |
Front Range Pipeline LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method ownership investment (as percent) | 33.33% | |
Investments in unconsolidated affiliates | $ 189 | 191 |
Gulf Coast Express [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method ownership investment (as percent) | 25% | |
Investments in unconsolidated affiliates | $ 395 | 408 |
Texas Express Pipeline LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method ownership investment (as percent) | 10% | |
Investments in unconsolidated affiliates | $ 90 | 91 |
Cheyenne Connector | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method ownership investment (as percent) | 50% | |
Investments in unconsolidated affiliates | $ 142 | 143 |
Mont Belvieu Enterprise Fractionator | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method ownership investment (as percent) | 12.50% | |
Investments in unconsolidated affiliates | $ 29 | 28 |
Mont Belvieu 1 Fractionator | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method ownership investment (as percent) | 20% | |
Investments in unconsolidated affiliates | $ 9 | 7 |
Discovery Producer Services LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method ownership investment (as percent) | 40% | |
Investments in unconsolidated affiliates | $ 214 | 219 |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated affiliates | $ 22 | $ 22 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliates - Earnings from Investments in Unconsolidated Affiliates (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Earnings from unconsolidated affiliates | $ 160 | $ 143 |
DCP Sand Hills Pipeline, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings from unconsolidated affiliates | 87 | 71 |
DCP Southern Hills Pipeline, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings from unconsolidated affiliates | 25 | 24 |
Front Range Pipeline LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings from unconsolidated affiliates | 11 | 10 |
Gulf Coast Express [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings from unconsolidated affiliates | 17 | 16 |
Texas Express Pipeline LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings from unconsolidated affiliates | 5 | 5 |
Cheyenne Connector | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings from unconsolidated affiliates | 3 | 4 |
Mont Belvieu Enterprise Fractionator | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings from unconsolidated affiliates | 1 | 2 |
Mont Belvieu 1 Fractionator | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings from unconsolidated affiliates | 4 | 4 |
Discovery Producer Services LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings from unconsolidated affiliates | 6 | 6 |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings from unconsolidated affiliates | $ 1 | $ 1 |
Investments in Unconsolidated_5
Investments in Unconsolidated Affiliates - Equity Method Investment Summarized Financial Information, Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Equity Method Statement of Operations [Line Items] | ||
Total operating revenues | $ 2,726 | $ 3,375 |
Net (loss) income | 212 | 81 |
Unconsolidated Affiliates | ||
Schedule of Equity Method Statement of Operations [Line Items] | ||
Total operating revenues | 595 | 563 |
Operating Expenses | 222 | 217 |
Net (loss) income | $ 379 | $ 344 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Instruments Carried at Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - assets | $ 87 | $ 140 |
Current Assets | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted Investments, at Fair Value | 1 | 1 |
Long- Term Assets | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - assets | 20 | 26 |
Long- Term Assets | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted Investments, at Fair Value | 45 | 42 |
Current Liabilities | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - liabilities | 68 | 148 |
Long- Term Liabilities | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - liabilities | 20 | 35 |
Level 1 | Current Assets | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - assets | 1 | 2 |
Level 1 | Current Assets | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted Investments, at Fair Value | 0 | 0 |
Level 1 | Long- Term Assets | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - assets | 0 | 0 |
Level 1 | Long- Term Assets | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted Investments, at Fair Value | 45 | 42 |
Level 1 | Current Liabilities | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - liabilities | 1 | 4 |
Level 1 | Long- Term Liabilities | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - liabilities | 0 | 0 |
Level 2 | Current Assets | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - assets | 71 | 121 |
Level 2 | Current Assets | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted Investments, at Fair Value | 1 | 1 |
Level 2 | Long- Term Assets | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - assets | 19 | 23 |
Level 2 | Long- Term Assets | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted Investments, at Fair Value | 0 | 0 |
Level 2 | Current Liabilities | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - liabilities | 66 | 142 |
Level 2 | Long- Term Liabilities | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - liabilities | 19 | 32 |
Level 3 | Current Assets | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - assets | 15 | 17 |
Level 3 | Current Assets | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted Investments, at Fair Value | 0 | 0 |
Level 3 | Long- Term Assets | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - assets | 1 | 3 |
Level 3 | Long- Term Assets | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted Investments, at Fair Value | 0 | 0 |
Level 3 | Current Liabilities | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - liabilities | 1 | 2 |
Level 3 | Long- Term Liabilities | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivatives - liabilities | $ 1 | $ 3 |
Fair Value Measurement - Conden
Fair Value Measurement - Condensed Consolidated Balance Sheets for Derivative Financial Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Current Assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 17 | $ 0 |
Net realized and unrealized gains (losses) included in earnings | 2 | 2 |
Transfers out of Level 3 | 0 | 0 |
Settlements | (4) | 0 |
Ending balance | 15 | 2 |
Net unrealized gains (losses) on derivatives still held included in earnings | 2 | 2 |
Long- Term Assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 3 | 2 |
Net realized and unrealized gains (losses) included in earnings | (1) | 3 |
Transfers out of Level 3 | (1) | (1) |
Settlements | 0 | 0 |
Ending balance | 1 | 4 |
Net unrealized gains (losses) on derivatives still held included in earnings | 0 | 2 |
Current Liabilities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net unrealized gains (losses) on derivatives still held included in earnings | 0 | (8) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (2) | (3) |
Net realized and unrealized (losses) gains included in earnings | 0 | (12) |
Transfers out of Level 3 | 0 | 1 |
Settlements | 1 | 4 |
Ending Balance | (1) | (10) |
Long- Term Liabilities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net unrealized gains (losses) on derivatives still held included in earnings | 0 | (3) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (3) | (4) |
Net realized and unrealized (losses) gains included in earnings | 1 | (6) |
Transfers out of Level 3 | 1 | 5 |
Settlements | 0 | 0 |
Ending Balance | $ (1) | $ (5) |
Schedule of Valuation Processes
Schedule of Valuation Processes (Detail) - Level 3 - Market Approach Valuation Technique $ in Millions | Mar. 31, 2023 USD ($) $ / gal |
Derivative Liabilities | Natural Gas Liquids | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Liabilities, fair value | $ | $ (2) |
Derivative Liabilities | Natural Gas Liquids | Minimum | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward curve prices | 0.21 |
Derivative Liabilities | Natural Gas Liquids | Maximum | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward curve prices | 1.56 |
Derivative Liabilities | Natural Gas Liquids | Weighted Average [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward curve prices | 0.96 |
Derivative Assets | Natural Gas Liquids | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Assets | $ | $ 15 |
Derivative Assets | Natural Gas Liquids | Minimum | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward curve prices | 0.21 |
Derivative Assets | Natural Gas Liquids | Maximum | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward curve prices | 1.52 |
Derivative Assets | Natural Gas Liquids | Weighted Average [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward curve prices | 0.86 |
Derivative Assets | Natural Gas [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Assets | $ | $ 1 |
Derivative Assets | Natural Gas [Member] | Minimum | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward curve prices | 2.76 |
Derivative Assets | Natural Gas [Member] | Maximum | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward curve prices | 5.24 |
Derivative Assets | Natural Gas [Member] | Weighted Average [Member] | |
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |
Forward curve prices | 2.92 |
Carrying Value and Fair Value o
Carrying Value and Fair Value of Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Total Debt, Carrying Value | $ 4,908 | $ 4,874 |
Total Debt, Fair Value | $ 4,900 | $ 4,772 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Mar. 15, 2023 | Mar. 31, 2023 |
Accounts Receivable Securitization Facility | ||
Debt Instrument [Line Items] | ||
Accounts Recievable included in the Securitization Transaction | $ 887 | |
Line of Credit Facility, Current Borrowing Capacity | 350 | |
Line of credit uncommitted option to increase | 400 | |
Accounts Receivable Securitization Agreement | 350 | |
Credit Agreement | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,400 | |
Letter of credit amount outstanding | (2) | |
Debt covenants, maximum borrowing amount | 1,173 | |
Credit Facility Outstanding Borrowings | $ (225) | |
Issued March 2013, interest at 3.875% payable semi-annually, due March 2023 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | |
Extinguishment of Debt, Amount | $ 500 |
Debt - Future Maturities of Lon
Debt - Future Maturities of Long-Term Debt (Detail) $ in Millions | Mar. 31, 2023 USD ($) |
Maturities of Long-term Debt [Abstract] | |
2023 | $ 0 |
2024 | 350 |
2025 | 825 |
2026 | 0 |
2027 | 725 |
Thereafter | 3,000 |
Long Term Debt Maturities Repayments Of Principal Total | $ 4,900 |
Risk Management and Hedging A_3
Risk Management and Hedging Activities - Additional Information (Detail) $ in Millions | Mar. 31, 2023 USD ($) |
Derivative [Line Items] | |
Collateral, cash deposits | $ 32 |
Letters of credit received | $ 49 |
Risk Management and Hedging A_4
Risk Management and Hedging Activities - Summary of Gross and Net Amounts of Derivative Instruments (Detail) - Commodity derivatives - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Offsetting Assets [Line Items] | ||
Commodity derivatives - assets | $ 107 | $ 166 |
Derivative Asset, Subject to Master Netting Arrangement, Deduction of Financial Instrument Not Offset | (3) | 0 |
Derivative Asset | 104 | 166 |
Commodity derivatives - liabilities | (88) | (183) |
Derivative Liability, Subject to Master Netting Arrangement, Deduction of Financial Instrument Not Offset | 3 | 0 |
Derivative Liability | $ (85) | $ (183) |
Risk Management and Hedging A_5
Risk Management and Hedging Activities - Schedule of Designated and Non-Designated Derivative Instruments in Statement of Financial Position, Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative Asset [Abstract] | ||
Derivative Instruments and Hedges, Current Assets | $ 87 | $ 140 |
Derivative Instruments and Hedges, Assets, Noncurrent | 20 | 26 |
Derivative Liability [Abstract] | ||
Derivative Instruments and Hedges, Current Liabilities | 68 | 148 |
Derivative Instruments and Hedges, Liabilities, Noncurrent | 20 | 35 |
Commodity derivatives | Derivative Asset Not Designated As Hedging Instruments [Member] | ||
Derivative Asset [Abstract] | ||
Derivative Instruments and Hedges, Current Assets | 87 | 140 |
Derivative Instruments and Hedges, Assets, Noncurrent | 20 | 26 |
Derivative Instruments Not Designated as Hedging Instruments, Total Assets, at Fair Value | 107 | 166 |
Commodity derivatives | Derivative Liabilities Not Designated As Hedging Instruments [Member] | ||
Derivative Liability [Abstract] | ||
Derivative Instruments and Hedges, Current Liabilities | 68 | 148 |
Derivative Instruments and Hedges, Liabilities, Noncurrent | 20 | 35 |
Derivative Instruments Not Designated as Hedging Instruments, Total Liabilities, at Fair Value | $ 88 | $ 183 |
Risk Management and Hedging A_6
Risk Management and Hedging Activities - Schedule of Changes in Derivative Instruments not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative [Line Items] | ||
Trading and marketing (losses) gains, net | $ 87 | $ (235) |
Derivative Assets Not Designated As Hedging Instruments | Commodity derivatives | ||
Derivative [Line Items] | ||
Realized gains | 47 | (59) |
Unrealized gains (losses) | 40 | (176) |
Trading and marketing (losses) gains, net | $ 87 | $ (235) |
Risk Management and Hedging A_7
Risk Management and Hedging Activities - Schedule of Net Long or Short Positions Expected to be Realized (Detail) | 3 Months Ended | |
Mar. 31, 2023 MMBTU bbl | Mar. 31, 2022 MMBTU bbl | |
Crude Oil | ||
Net (Short) Position, Volume [Abstract] | ||
Net (Short) Position (Bbls), Year One | bbl | 0 | (1,047,000) |
Net (Short) Position (Bbls), Year Two | bbl | 0 | (1,526,000) |
Net (Short) Position (Bbls), Year Three | bbl | 0 | (360,000) |
Net (Short) Position (Bbls), Year Four | bbl | 0 | 0 |
Net Long (Short) Position (Bbls), Year Five | bbl | 0 | |
Net (Short) Positions (Bbls), Year Six | bbl | 0 | |
Natural Gas [Member] | ||
Net Long (Short) Position, MMBtu [Abstract] | ||
Net (Short) Long Position (MMBtu), Year One | MMBTU | (21,590,600) | (56,954,500) |
Net (Short) Long Position (MMBtu), Year Two | MMBTU | (7,100,000) | (1,825,000) |
Net Long Position (MMBtu), Year Three | MMBTU | 0 | (2,745,000) |
Net Long Position (MMBtu), Year Four | MMBTU | 0 | 0 |
Net Long Position (MMBtu), Year Five | MMBTU | 0 | |
Net Long (Short) Positions (MMBtu), year Six | MMBTU | 0 | |
Natural Gas Liquids | ||
Net (Short) Position, Volume [Abstract] | ||
Net (Short) Position (Bbls), Year One | bbl | 1,065,818 | (5,419,927) |
Net (Short) Position (Bbls), Year Two | bbl | (85,500) | (1,393,000) |
Net (Short) Position (Bbls), Year Three | bbl | (1,000) | (1,335,000) |
Net (Short) Position (Bbls), Year Four | bbl | 0 | (1,440,000) |
Net Long (Short) Position (Bbls), Year Five | bbl | (1,440,000) | |
Net (Short) Positions (Bbls), Year Six | bbl | (360,000) | |
Natural Gas Basis Swaps | ||
Net Long (Short) Position, MMBtu [Abstract] | ||
Net (Short) Long Position (MMBtu), Year One | MMBTU | (4,875,000) | (5,217,500) |
Net (Short) Long Position (MMBtu), Year Two | MMBTU | (5,630,000) | (830,000) |
Net Long Position (MMBtu), Year Three | MMBTU | 2,072,500 | (2,280,000) |
Net Long Position (MMBtu), Year Four | MMBTU | 535,000 | 4,967,500 |
Net Long Position (MMBtu), Year Five | MMBTU | 535,000 | |
Net Long (Short) Positions (MMBtu), year Six | MMBTU | 0 |
Partnership Equity and Distri_3
Partnership Equity and Distributions - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
DCP Midstream LP | DCP Midstream, LLC | |
Partnership Equity And Distribution [Line Items] | |
Ownership interest percentage by parent | 56% |
Equity Distribution Agreement [Member] | |
Partnership Equity And Distribution [Line Items] | |
Offer Value Of Common Stock Unit Remaining Available For Sale | $ 750 |
Partnership Equity and Distri_4
Partnership Equity and Distributions - Cash Distribution (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Mar. 15, 2023 | Feb. 14, 2023 | Jan. 17, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Distribution Made to Limited Partner [Line Items] | |||||
Total Cash Distribution | $ 95 | $ 86 | |||
Series B Preferred Limited Partners [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Preferred Limited Partnership Distribution; Distribution Amount Paid | $ 0.4922 | ||||
Total Cash Distribution | $ 3 | 3 | 3 | ||
Series C Preferred Limited Partners [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Preferred Limited Partnership Distribution; Distribution Amount Paid | $ 0.4969 | ||||
Total Cash Distribution | $ 2 | 2 | 2 | ||
Limited Partners | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Per Unit Distribution (in dollars per share) | $ 0.43 | ||||
Total Cash Distribution | $ 90 | $ 90 | $ 81 |
Net Income or Loss per Limite_2
Net Income or Loss per Limited Partner Unit Additional Detail (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 208,588,554 | 208,801,652 |
Net Income (Loss), Per Outstanding Limited Partnership Unit, Basic, Net of Tax | $ 0.99 | $ 0.32 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 32,672 | 422,705 |
Weighted Average Number of Shares Outstanding, Basic | 208,555,882 | 208,378,947 |
Net Income (Loss) Allocated to Limited Partners | $ 206 | $ 66 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 13 | $ 15 |
Severance Costs | 10 | |
Payments for Restructuring | $ (12) |
Business Segments - Segment Inf
Business Segments - Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total operating revenues | $ 2,726 | $ 3,375 |
Gross margin | 498 | 300 |
Operating and maintenance expense | (197) | (152) |
Depreciation and amortization expense | (90) | (90) |
General and administrative expense | (80) | (55) |
Loss on sale of assets, net | 0 | 7 |
Restructuring Costs | (10) | 0 |
Earnings from unconsolidated affiliates | 160 | 143 |
Interest expense, net | (68) | (71) |
Income tax expense | (1) | (1) |
Net income | 212 | 81 |
Net income attributable to noncontrolling interests | (1) | (1) |
Net income attributable to partners | 211 | 80 |
Non-cash derivative mark-to-market | 40 | (176) |
Non-cash lower of cost or net realizable value adjustment | 22 | 0 |
Capital expenditures | 81 | 23 |
Investments in unconsolidated affiliates, net | 1 | |
Logistics and Marketing | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 2,392 | 3,163 |
Gathering and Processing | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,766 | 2,106 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | (1,432) | (1,894) |
Operating Segments | Logistics and Marketing | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 2,392 | 3,163 |
Gross margin | 54 | 16 |
Operating and maintenance expense | (9) | (8) |
Depreciation and amortization expense | (2) | (3) |
General and administrative expense | (2) | (1) |
Loss on sale of assets, net | 0 | |
Restructuring Costs | 0 | |
Earnings from unconsolidated affiliates | 154 | 137 |
Interest expense, net | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | 195 | 141 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to partners | 195 | 141 |
Non-cash derivative mark-to-market | (5) | (45) |
Non-cash lower of cost or net realizable value adjustment | 22 | |
Capital expenditures | 0 | 2 |
Investments in unconsolidated affiliates, net | 0 | |
Operating Segments | Gathering and Processing | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,766 | 2,106 |
Gross margin | 444 | 284 |
Operating and maintenance expense | (182) | (140) |
Depreciation and amortization expense | (84) | (81) |
General and administrative expense | (4) | (4) |
Loss on sale of assets, net | 7 | |
Restructuring Costs | 0 | |
Earnings from unconsolidated affiliates | 6 | 6 |
Interest expense, net | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | 180 | 72 |
Net income attributable to noncontrolling interests | (1) | (1) |
Net income attributable to partners | 179 | 71 |
Non-cash derivative mark-to-market | 45 | (131) |
Non-cash lower of cost or net realizable value adjustment | 0 | |
Capital expenditures | 79 | 20 |
Investments in unconsolidated affiliates, net | 1 | |
Other | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 0 | 0 |
Gross margin | 0 | 0 |
Operating and maintenance expense | (6) | (4) |
Depreciation and amortization expense | (4) | (6) |
General and administrative expense | (74) | (50) |
Loss on sale of assets, net | 0 | |
Restructuring Costs | (10) | |
Earnings from unconsolidated affiliates | 0 | 0 |
Interest expense, net | (68) | (71) |
Income tax expense | (1) | 1 |
Net income | (163) | (132) |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to partners | (163) | (132) |
Non-cash derivative mark-to-market | 0 | 0 |
Non-cash lower of cost or net realizable value adjustment | 0 | |
Capital expenditures | 2 | 1 |
Investments in unconsolidated affiliates, net | 0 | |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | (1,432) | (1,894) |
Gross margin | 0 | 0 |
Operating and maintenance expense | 0 | |
Depreciation and amortization expense | 0 | 0 |
General and administrative expense | 0 | 0 |
Restructuring Costs | 0 | |
Earnings from unconsolidated affiliates | 0 | 0 |
Interest expense, net | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | 0 | 0 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to partners | 0 | 0 |
Non-cash derivative mark-to-market | 0 | 0 |
Non-cash lower of cost or net realizable value adjustment | 0 | |
Capital expenditures | $ 0 | 0 |
Investments in unconsolidated affiliates, net | $ 0 |
Business Segments - Segment Ass
Business Segments - Segment Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment long-term assets | $ 11,614 | $ 11,632 |
Current assets | 1,270 | 1,702 |
Total assets | 12,884 | 13,334 |
Operating Segments | Logistics and Marketing | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment long-term assets | 3,788 | 3,814 |
Operating Segments | Gathering and Processing | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment long-term assets | 7,603 | 7,594 |
Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment long-term assets | $ 223 | $ 224 |
Statement of Cash Flows, Supp_2
Statement of Cash Flows, Supplemental Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | ||
Income Taxes Paid, Net | $ 2 | $ (1) |
Property, plant and equipment acquired with accounts payable and accrued liabilities | 32 | 7 |
Right-of-Use Assets Obtained in Exchange for Operating and Finance Lease Liabilities | 16 | 7 |
Cash paid for interest, net of amounts capitalized | $ 81 | $ 84 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Apr. 19, 2023 | Mar. 15, 2023 | Jan. 17, 2023 |
Series B Preferred Limited Partners [Member] | |||
Subsequent Event [Line Items] | |||
Preferred Limited Partnership Unit; Distribution Amount Declared | $ 0.4922 | ||
Series C Preferred Limited Partners [Member] | |||
Subsequent Event [Line Items] | |||
Preferred Limited Partnership Unit; Distribution Amount Declared | $ 0.4969 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 0.43 | ||
Distribution Made to Limited Partner, Date of Record | May 01, 2023 | ||
Distribution Made to Limited Partner, Distribution Date | May 15, 2023 | ||
Subsequent Event [Member] | Issued May 2013, interest at 5.850% payable semi-annually, due May 2043 | Junior subordinated notes | |||
Subsequent Event [Line Items] | |||
Intent to Redeem Debt Amount | $ 550 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.85% | ||
Estimated Redemption Date | May 21, 2023 | ||
Subsequent Event [Member] | Series B Preferred Limited Partners [Member] | |||
Subsequent Event [Line Items] | |||
Preferred Limited Partner Distribution: Record Date | Jun. 01, 2023 | ||
Preferred Limited Partnership Distribution; Distribution Date | Jun. 15, 2023 | ||
Preferred Limited Partnership Unit; Distribution Amount Declared | $ 0.4922 | ||
Subsequent Event [Member] | Series C Preferred Limited Partners [Member] | |||
Subsequent Event [Line Items] | |||
Preferred Limited Partner Distribution: Record Date | Jul. 03, 2023 | ||
Preferred Limited Partnership Distribution; Distribution Date | Jul. 17, 2023 | ||
Preferred Limited Partnership Unit; Distribution Amount Declared | $ 0.4969 |