Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Jul. 17, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-36413 | |
Entity Registrant Name | ENABLE MIDSTREAM PARTNERS, LP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 72-1252419 | |
Entity Address, Address Line One | 499 West Sheridan Avenue, | |
Entity Address, Address Line Two | Suite 1500 | |
Entity Address, City or Town | Oklahoma City, | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73102 | |
City Area Code | 405 | |
Local Phone Number | 525-7788 | |
Title of 12(b) Security | Common Units Representing Limited Partner Interests | |
Trading Symbol | ENBL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001591763 | |
Entity Common Stock, Shares Outstanding | 435,474,966 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Sep. 30, 2020 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues (including revenues from affiliates (Note 13)): | ||||
Total Revenues | $ 596 | $ 699 | $ 1,759 | $ 2,229 |
Cost and Expenses (including expenses from affiliates (Note 13)): | ||||
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) | 250 | 263 | 653 | 958 |
Operation and maintenance | 96 | 105 | 313 | 307 |
General and administrative | 28 | 31 | 73 | 82 |
Depreciation and amortization | 105 | 108 | 314 | 323 |
Impairments of property, plant and equipment and goodwill (Note 7) | 0 | 0 | 28 | 0 |
Taxes other than income tax | 17 | 17 | 52 | 52 |
Total Cost and Expenses | 496 | 524 | 1,433 | 1,722 |
Operating Income | 100 | 175 | 326 | 507 |
Other Income (Expense): | ||||
Interest expense | (43) | (48) | (136) | (142) |
Equity in earnings (losses) of equity method affiliate, net | (222) | 5 | (211) | 12 |
Other, net | 2 | 1 | 7 | 2 |
Total Other Expense | (263) | (42) | (340) | (128) |
Income (Loss) Before Income Tax | ||||
Income (Loss) Before Income Tax | (163) | 133 | (14) | 379 |
Income tax benefit | 0 | 0 | 0 | (1) |
Net Income (Loss) | ||||
Net Income (Loss) | (163) | 133 | (14) | 380 |
Less: Net income (loss) attributable to noncontrolling interest | ||||
Less: Net income (loss) attributable to noncontrolling interest | 1 | 1 | (6) | 2 |
Net Income (Loss) Attributable to Limited Partners | ||||
Net Income (Loss) Attributable to Limited Partners | (164) | 132 | (8) | 378 |
Less: Series A Preferred Unit distributions (Note 6) | ||||
Less: Series A Preferred Unit distributions (Note 6) | 9 | 9 | 27 | 27 |
Net Income (Loss) Attributable to Common Units (Note 5) | ||||
Net Income (Loss) Attributable to Common Units (Note 5) | (173) | 123 | (35) | 351 |
Common Unit [Member] | ||||
Net Income (Loss) Attributable to Common Units (Note 5) | ||||
Net Income (Loss) Attributable to Common Units (Note 5) | $ (173) | $ 123 | $ (35) | $ 351 |
Basic and Diluted earnings per unit and weighted average number of units outstanding | ||||
Basic earnings (loss) per unit (Note 5) | $ (0.40) | $ 0.28 | $ (0.08) | $ 0.81 |
Diluted earnings (loss) per unit (Note 5) | $ (0.40) | $ 0.28 | $ (0.08) | $ 0.81 |
Product | ||||
Revenues (including revenues from affiliates (Note 13)): | ||||
Total Revenues | $ 280 | $ 320 | $ 764 | $ 1,156 |
Natural Gas, Gathering, Transportation, Marketing and Processing | ||||
Revenues (including revenues from affiliates (Note 13)): | ||||
Total Revenues | $ 316 | $ 379 | $ 995 | $ 1,073 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income Statement (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (163) | $ 133 | $ (14) | $ 380 |
Other comprehensive income (loss): | ||||
Change in fair value of interest rate derivative instruments | 0 | (1) | (7) | (4) |
Reclassification of interest rate derivative losses to net income | 2 | 0 | 3 | 0 |
Other comprehensive income (loss) | 2 | (1) | (4) | (4) |
Comprehensive income (loss) | (161) | 132 | (18) | 376 |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 1 | 1 | (6) | 2 |
Comprehensive income (loss) attributable to Limited Partners | $ (162) | $ 131 | $ (12) | $ 374 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 18 | $ 4 |
Restricted cash | 0 | |
Accounts receivable, net of allowance for doubtful accounts (Note 1) | 229 | 244 |
Accounts receivable—affiliated companies | 12 | 25 |
Inventory | 42 | 46 |
Gas imbalances | 38 | 35 |
Other current assets | 34 | 35 |
Total current assets | 373 | 389 |
Property, Plant and Equipment: | ||
Property, plant and equipment | 13,207 | 13,161 |
Less: Accumulated depreciation and amortization | 2,504 | 2,291 |
Property, plant and equipment, net | 10,703 | 10,870 |
Other Assets: | ||
Intangible assets, net | 554 | 601 |
Goodwill | 0 | 12 |
Investment in equity method affiliate | 75 | 309 |
Other, net of allowance for doubtful accounts (Note 1) | 70 | 85 |
Total other assets | 699 | 1,007 |
Total Assets | 11,775 | 12,266 |
Current Liabilities: | ||
Accounts payable | 114 | 161 |
Accounts payable—affiliated companies | 2 | 1 |
Current portion of long-term debt | 0 | 251 |
Short-term debt | 334 | 155 |
Taxes accrued | 52 | 32 |
Gas imbalances | 14 | 19 |
Other | 128 | 161 |
Total current liabilities | 644 | 780 |
Other Liabilities: | ||
Accumulated deferred income taxes, net | 5 | 4 |
Regulatory liabilities | 25 | 24 |
Other | 75 | 80 |
Total other liabilities | 105 | 108 |
Long-Term Debt | 3,950 | 3,969 |
Commitments and Contingencies (Note 14) | ||
Partners’ Equity: | ||
Series A Preferred Units (14,520,000 issued and outstanding at September 30, 2020 and December 31, 2019) | 362 | 362 |
Common Units (435,468,668 issued and outstanding at September 30, 2020 and 435,201,365 issued and outstanding at December 31, 2019) | 6,695 | 7,013 |
Accumulated other comprehensive loss | (7) | (3) |
Noncontrolling interest | 26 | 37 |
Total Partners’ Equity | 7,076 | 7,409 |
Total Liabilities and Partners’ Equity | $ 11,775 | $ 12,266 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Sep. 30, 2020 | Dec. 31, 2019 |
Common Unit [Member] | ||
Common units issued | 435,468,668 | 435,201,365 |
Common units outstanding | 435,468,668 | 435,201,365 |
Series A Preferred Units [Member] | ||
Preferred Units, Issued | 14,520,000 | 14,520,000 |
Preferred Units, Outstanding | 14,520,000 | 14,520,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ (14) | $ 380 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 314 | 323 |
Deferred income taxes | 1 | (1) |
Impairments of property, plant and equipment and goodwill | 28 | 0 |
Net loss on sale/retirement of assets | 17 | 5 |
Gain on extinguishment of debt | (5) | 0 |
Equity in (earnings) losses of equity method affiliate, net | 211 | (12) |
Return on investment in equity method affiliate | 14 | 12 |
Equity-based compensation | 10 | 13 |
Amortization of debt costs and discount | 3 | (1) |
Changes in other assets and liabilities: | ||
Accounts receivable, net | 14 | 19 |
Accounts receivable—affiliated companies | 13 | (3) |
Inventory | 4 | 3 |
Gas imbalance assets | (3) | 6 |
Other current assets | 0 | (2) |
Other assets | 4 | 8 |
Accounts payable | (47) | (108) |
Accounts payable—affiliated companies | 1 | (2) |
Gas imbalance liabilities | (5) | (5) |
Other current liabilities | (14) | 64 |
Other liabilities | (3) | (8) |
Net cash provided by operating activities | 543 | 691 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (152) | (353) |
Proceeds from sale of assets | 19 | 1 |
Proceeds from insurance | 1 | 0 |
Return of investment in equity method affiliate | 9 | 8 |
Other, net | 3 | (9) |
Net cash used in investing activities | (120) | (353) |
Cash Flows from Financing Activities: | ||
Increase (decrease) in short-term debt | 179 | (467) |
Proceeds from long-term debt, net of issuance costs | 0 | 1,544 |
Repayment of long-term debt | (267) | (700) |
Proceeds from Revolving Credit Facility | 869 | 0 |
Repayment of Revolving Credit Facility | (869) | (250) |
Distributions to common unitholders | (288) | (420) |
Distributions to preferred unitholders | (27) | (27) |
Distributions to non-controlling interests | (5) | (3) |
Cash paid for employee equity-based compensation | (1) | (24) |
Net cash used in financing activities | (409) | (347) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 14 | (9) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 4 | 22 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 18 | $ 13 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Partners' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Noncontrolling Interest [Member] | Series A Preferred Units [Member]Preferred Units | Common Unit [Member]Partners' Capital | AOCI Attributable to Parent | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, AdjustmentCommon Unit [Member]Partners' Capital |
Balance, beginning of period at Dec. 31, 2018 | $ 7,618 | $ 38 | $ 362 | $ 7,218 | $ 0 | ||
Balance, beginning of period, units at Dec. 31, 2018 | 15 | 433 | |||||
Changes in Partners' Capital | |||||||
Net Income | 123 | 1 | $ 9 | $ 113 | |||
Partners' Capital Account, Distributions | (148) | (1) | (9) | (138) | |||
Partners' Capital Account, Unit-based Compensation, Net of Taxes | (10) | $ (10) | |||||
Equity-based compensation, net of units for employee taxes, units | 2 | ||||||
Balance, end of period at Mar. 31, 2019 | 7,583 | 38 | $ 362 | $ 7,183 | 0 | ||
Balance, end of period, units at Mar. 31, 2019 | 15 | 435 | |||||
Changes in Partners' Capital | |||||||
Net Income | 124 | 0 | $ 9 | $ 115 | |||
Other comprehensive loss | (3) | (3) | |||||
Partners' Capital Account, Distributions | (148) | (1) | (9) | (138) | |||
Partners' Capital Account, Unit-based Compensation, Net of Taxes | 3 | $ 3 | |||||
Equity-based compensation, net of units for employee taxes, units | 0 | ||||||
Balance, end of period at Jun. 30, 2019 | 7,559 | 37 | $ 362 | $ 7,163 | (3) | ||
Balance, end of period, units at Jun. 30, 2019 | 15 | 435 | |||||
Changes in Partners' Capital | |||||||
Net Income | 133 | 1 | $ 9 | $ 123 | |||
Other comprehensive loss | (1) | (1) | |||||
Partners' Capital Account, Distributions | (154) | (1) | (9) | (144) | |||
Partners' Capital Account, Unit-based Compensation, Net of Taxes | 3 | $ 3 | |||||
Equity-based compensation, net of units for employee taxes, units | 0 | ||||||
Balance, end of period at Sep. 30, 2019 | 7,540 | 37 | $ 362 | $ 7,145 | (4) | ||
Balance, end of period, units at Sep. 30, 2019 | 15 | 435 | |||||
Balance, beginning of period at Dec. 31, 2019 | 7,409 | 37 | $ 362 | $ 7,013 | (3) | $ (3) | $ (3) |
Balance, beginning of period, units at Dec. 31, 2019 | 15 | 435 | |||||
Changes in Partners' Capital | |||||||
Net Income | 105 | (7) | $ 9 | $ 103 | |||
Other comprehensive loss | (6) | (6) | |||||
Partners' Capital Account, Distributions | (156) | (3) | (9) | (144) | |||
Partners' Capital Account, Unit-based Compensation, Net of Taxes | 3 | $ 3 | |||||
Equity-based compensation, net of units for employee taxes, units | 0 | ||||||
Balance, end of period at Mar. 31, 2020 | 7,352 | 27 | $ 362 | $ 6,972 | (9) | ||
Balance, end of period, units at Mar. 31, 2020 | 15 | 435 | |||||
Changes in Partners' Capital | |||||||
Net Income | 44 | 0 | $ 9 | $ 35 | |||
Partners' Capital Account, Distributions | (81) | 0 | (9) | (72) | |||
Partners' Capital Account, Unit-based Compensation, Net of Taxes | 2 | $ 2 | |||||
Equity-based compensation, net of units for employee taxes, units | 0 | ||||||
Balance, end of period at Jun. 30, 2020 | 7,317 | 27 | $ 362 | $ 6,937 | (9) | ||
Balance, end of period, units at Jun. 30, 2020 | 15 | 435 | |||||
Changes in Partners' Capital | |||||||
Net Income | (163) | 1 | $ 9 | $ (173) | |||
Other comprehensive loss | 2 | 2 | |||||
Partners' Capital Account, Distributions | (83) | (2) | (9) | (72) | |||
Partners' Capital Account, Unit-based Compensation, Net of Taxes | 3 | $ 3 | |||||
Equity-based compensation, net of units for employee taxes, units | 0 | ||||||
Balance, end of period at Sep. 30, 2020 | $ 7,076 | $ 26 | $ 362 | $ 6,695 | $ (7) | ||
Balance, end of period, units at Sep. 30, 2020 | 15 | 435 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization Enable Midstream Partners, LP is a Delaware limited partnership whose assets and operations are organized into two reportable segments: (i) gathering and processing and (ii) transportation and storage. The gathering and processing segment primarily provides natural gas and crude oil gathering and natural gas processing services to our producer customers. The transportation and storage segment provides interstate and intrastate natural gas pipeline transportation and storage services primarily to our producer, power plant, LDC and industrial end-user customers. The Partnership’s natural gas gathering and processing assets are primarily located in Oklahoma, Texas, Arkansas and Louisiana and serve natural gas production in the Anadarko, Arkoma and Ark-La-Tex Basins. Crude oil gathering assets are located in Oklahoma and serve crude oil production in the SCOOP and STACK plays of the Anadarko Basin and in North Dakota and serve crude oil production in the Bakken Shale formation of the Williston Basin. The Partnership’s natural gas transportation and storage assets consist primarily of an interstate pipeline system extending from western Oklahoma and the Texas Panhandle to Louisiana, an interstate pipeline system extending from Louisiana to Illinois, an intrastate pipeline system in Oklahoma, and our investment in SESH, a pipeline extending from Louisiana to Alabama. CenterPoint Energy and OGE Energy each have 50% of the management interests in Enable GP. Enable GP is the general partner of the Partnership and has no other operating activities. Enable GP is governed by a board made up of two representatives designated by each of CenterPoint Energy and OGE Energy, along with the Partnership’s Chief Executive Officer and three independent board members CenterPoint Energy and OGE Energy mutually agreed to appoint. CenterPoint Energy and OGE Energy also own a 40% and 60% interest, respectively, in the incentive distribution rights held by Enable GP. As of September 30, 2020, CenterPoint Energy held approximately 53.7% or 233,856,623 of the Partnership’s common units, and OGE Energy held approximately 25.5% or 110,982,805 of the Partnership’s common units. Additionally, CenterPoint Energy holds 14,520,000 Series A Preferred Units. The limited partner interests of the Partnership have limited voting rights on matters affecting the business. As such, limited partners do not have rights to elect the Partnership’s general partner on an annual or continuing basis and may not remove Enable GP, its current general partner, without at least a 75% vote by all unitholders, including all units held by the Partnership’s limited partners, and Enable GP and its affiliates, voting together as a single class. As of September 30, 2020, the Partnership owned a 50% interest in SESH. See Note 8 for further discussion of SESH. For the nine months ended September 30, 2020, the Partnership held a 50% ownership in Atoka and consolidated Atoka in its Condensed Consolidated Financial Statements as EOIT acted as the managing member of Atoka and had control over the operations of Atoka. In addition, the Partnership held a 60% interest in ESCP, which is consolidated in its Condensed Consolidated Financial Statements as EOCS acted as the managing member of ESCP and had control over the operations of ESCP. Basis of Presentation The accompanying Condensed Consolidated Financial Statements and related notes of the Partnership have been prepared pursuant to the rules and regulations of the SEC and GAAP. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with GAAP have been omitted. The accompanying Condensed Consolidated Financial Statements and related notes should be read in conjunction with the Consolidated Financial Statements and related notes included in our Annual Report. The Condensed Consolidated Financial Statements and the related notes reflect all normal recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the respective periods. Amounts reported in the Partnership’s Condensed Consolidated Statements of Income are not necessarily indicative of amounts expected for a full-year period due to the effects of, among other things, (a) seasonal fluctuations in demand for energy and energy services, (b) changes in energy commodity prices, (c) timing of maintenance and other expenditures, (d) acquisitions and dispositions of businesses, assets and other interests, and (e) the impact of the ongoing COVID-19 pandemic and the economic effects of the pandemic which have resulted in a substantial decrease in natural gas, NGLs and crude oil prices. For a description of the Partnership’s reportable segments, see Note 16. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Sales and Retirements of Assets On September 23, 2019, the Partnership entered into an agreement to sell its undivided 1/12th interest in the Bistineau Storage Facility in Louisiana for approximately $19 million. On January 27, 2020, FERC approved the sale. The Partnership closed the sale on April 1, 2020. We did not recognize a gain or loss on this transaction. In April 2020, we sustained damage to an approximately 100-mile gas gathering system in the Ark-La-Tex Basin of our gathering and processing segment. We have ceased operation of this system and are in the process of retiring it. We recognized a loss on retirement of approximately $20 million during the nine months ended September 30, 2020, which is included in Operation and maintenance expense in the Condensed Consolidated Statements of Income. Depreciation Expense On March 26, 2020, FERC issued an order approving MRT’s 2018 Rate Case and 2019 Rate Case settlements. As a result of the settlements, the new depreciation rates for MRT have been applied in accordance with the order. The new depreciation rates did not result in a material change in depreciation expense or results of operations. Accounts Receivable and Allowance for Doubtful Accounts The Partnership adopted ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2020. Upon adoption, the Partnership recognized a $3 million cumulative adjustment to Partners’ Equity and a corresponding adjustment to Allowance for doubtful accounts. Accounts receivable are recorded at the invoiced amount and do not typically bear interest. The determination of the allowance for doubtful accounts requires management to make estimates and judgments regarding our customers’ ability to pay. The allowance for doubtful accounts is determined based primarily upon the historical loss-rate method established for various pools of accounts receivables with similar levels of credit risk. The historical loss-rates are then adjusted, as necessary, based on current conditions and forecast information that could result in future uncollectable amounts. On an ongoing basis, we evaluate our customers’ financial strength and liquidity based on aging of accounts receivable, payment history, and review of other relevant information, including ratings agency credit ratings and alerts, publicly available reports and news releases, and bank and trade references. It is the policy of management to review the outstanding accounts receivable and other receivable balances within other assets at least quarterly, giving consideration to credit losses, the aging of receivables, specific customer circumstances that may impact their ability to pay the amounts due and current and forecast economic conditions over the assets contractual lives. The following table summarizes the required allowance for doubtful accounts. September 30, 2020 January 1, 2020 (In millions) Accounts receivable $ 2 $ 2 Other assets 3 3 Total Allowance for doubtful accounts $ 5 $ 5 Inventory Natural gas inventory is held, through the transportation and storage segment, to provide operational support for pipeline deliveries and to manage leased intrastate storage capacity. Natural gas liquids inventory is held, through the gathering and processing segment, due to timing differences between the production of certain natural gas liquids and ultimate sale to third parties. Natural gas and natural gas liquids inventory is valued using moving average cost and is subsequently recorded at the lower of cost or net realizable value. The Partnership recorded write-downs to net realizable value related to natural gas and natural gas liquids inventory of $2 million and zero during the three months ended September 30, 2020 and 2019, respectively, and $9 million and $6 million during the nine months ended September 30, 2020 and 2019, respectively. Assessing Impairment of Property, Plant and Equipment, Goodwill and Investment in Equity Method Affiliate The Partnership periodically evaluates long-lived assets, including property, plant and equipment, and specifically identifiable intangibles other than goodwill, when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. The determination of whether an impairment has occurred is based on an estimate of undiscounted cash flows attributable to the assets, as compared to the carrying value of the assets. For more information, see Note 7. The Partnership assesses its goodwill for impairment annually on October 1st, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. Goodwill is assessed for impairment by comparing the fair value of the reporting unit with its book value, including goodwill. The Partnership utilizes the market or income approaches to estimate the fair value of the reporting unit, also giving consideration to the alternative cost approach. Under the market approach, historical and current year forecasted cash flows are multiplied by a market multiple to determine fair value. Under the income approach, anticipated cash flows over a period of years plus a terminal value are discounted to present value using appropriate discount rates. The resulting fair value of the reporting unit is then compared to the carrying amount of the reporting unit and an impairment charge is recorded to goodwill for the difference. The Partnership performs its goodwill impairment testing at the reporting unit, which is one level below the transportation and storage and gathering and processing reportable segment level. For more information, see Note 7. The Partnership evaluates its Investment in equity method affiliate for impairment when factors indicate that an other than temporary decrease in the value of its investment has occurred and the carrying amount of its investment may not be recoverable. The Partnership utilizes the market or income approaches to estimate the fair value of the investment, also giving consideration to the alternative cost approach. Under the market approach, historical and current year forecasted cash flows are multiplied by a market multiple to determine fair value. Under the income approach, anticipated cash flows over a period of years plus a terminal value are discounted to present value using appropriate discount rates. The resulting fair value of the investment is then compared to the carrying amount of the investment and an impairment charge is recorded to Equity in earnings (losses) of equity method affiliate, net for the difference. Any basis difference between our recognized Investment in equity method affiliate and the underlying financial statements of the affiliate are assigned to the applicable net assets of the affiliate. For more information, see Note 8. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards to be Adopted in Future Periods Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This standard provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The standard was effective upon issuance and generally can be applied through December 31, 2022. The Partnership is currently evaluating the impact this ASU will have on our Condensed Consolidated Financial Statements and related disclosures. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenues The following tables disaggregate total revenues by major source from contracts with customers and the gain (loss) on derivative activity for the three and nine months ended September 30, 2020 and 2019. Three Months Ended September 30, 2020 Gathering and Transportation Eliminations Total (In millions) Revenues: Product sales: Natural gas $ 58 $ 77 $ (68) $ 67 Natural gas liquids 208 2 (2) 208 Condensate 15 — — 15 Total revenues from natural gas, natural gas liquids, and condensate 281 79 (70) 290 Loss on derivative activity (10) — — (10) Total Product sales $ 271 $ 79 $ (70) $ 280 Service revenues: Demand revenues $ 32 $ 116 $ — $ 148 Volume-dependent revenues 160 10 (2) 168 Total Service revenues $ 192 $ 126 $ (2) $ 316 Total Revenues $ 463 $ 205 $ (72) $ 596 Three Months Ended September 30, 2019 Gathering and Transportation Eliminations Total (In millions) Revenues: Product sales: Natural gas $ 69 $ 95 $ (69) $ 95 Natural gas liquids 191 5 (5) 191 Condensate 26 — — 26 Total revenues from natural gas, natural gas liquids, and condensate 286 100 (74) 312 Gain on derivative activity 8 — — 8 Total Product sales $ 294 $ 100 $ (74) $ 320 Service revenues: Demand revenues $ 97 $ 119 $ — $ 216 Volume-dependent revenues 151 15 (3) 163 Total Service revenues $ 248 $ 134 $ (3) $ 379 Total Revenues $ 542 $ 234 $ (77) $ 699 Nine Months Ended September 30, 2020 Gathering and Transportation Eliminations Total (In millions) Revenues: Product sales: Natural gas $ 161 $ 207 $ (181) $ 187 Natural gas liquids 523 7 (7) 523 Condensate 49 — — 49 Total revenues from natural gas, natural gas liquids, and condensate 733 214 (188) 759 Gain (loss) on derivative activity 6 (1) — 5 Total Product sales $ 739 $ 213 $ (188) $ 764 Service revenues: Demand revenues $ 105 $ 371 $ — $ 476 Volume-dependent revenues 487 38 (6) 519 Total Service revenues $ 592 $ 409 $ (6) $ 995 Total Revenues $ 1,331 $ 622 $ (194) $ 1,759 Nine Months Ended September 30, 2019 Gathering and Transportation Eliminations Total (In millions) Revenues: Product sales: Natural gas $ 291 $ 365 $ (305) $ 351 Natural gas liquids 698 16 (16) 698 Condensate 93 — — 93 Total revenues from natural gas, natural gas liquids, and condensate 1,082 381 (321) 1,142 Gain on derivative activity 14 — — 14 Total Product sales $ 1,096 $ 381 $ (321) $ 1,156 Service revenues: Demand revenues $ 225 $ 373 $ — $ 598 Volume-dependent revenues 438 48 (11) 475 Total Service revenues $ 663 $ 421 $ (11) $ 1,073 Total Revenues $ 1,759 $ 802 $ (332) $ 2,229 MRT Rate Case Settlements In June 2018, MRT filed a general NGA rate case (the 2018 Rate Case), and in October 2019, MRT filed a second rate case (the 2019 Rate Case). MRT began collecting the rates proposed in the 2018 Rate Case, subject to refund, on January 1, 2019. On March 26, 2020, FERC issued an order approving settlements filed in the 2018 Rate Case and the 2019 Rate Case. Upon issuance of the order and approval of the settlement of the MRT rate cases, the Partnership recognized $17 million of revenues from amounts previously held in reserve related to transportation and storage services performed in 2019. In May 2020, $21 million previously held in reserve was refunded to customers, which is inclusive of interest. Accounts Receivable The following table summarizes the components of accounts receivable, net of allowance for doubtful accounts. September 30, 2020 December 31, 2019 (In millions) Accounts Receivable: Customers $ 233 $ 239 Contract assets (1) 3 18 Non-customers 5 12 Total Accounts Receivable (2) $ 241 $ 269 ____________________ (1) Contract assets reflected in Total Accounts Receivable include accrued minimum volume commitments. Contract assets are primarily attributable to revenues associated with estimated shortfall volumes on certain annual minimum volume commitment arrangements. Total Accounts Receivable does not include contract assets related to firm service transportation contracts with tiered rates of $9 million as of September 30, 2020 and $6 million as of December 31, 2019, which are reflected in Other Assets. (2) Total Accounts Receivable includes Accounts receivable, net of allowance for doubtful accounts and Accounts receivable—affiliated companies. Contract Liabilities Our contract liabilities primarily consist of prepayments received from customers for which the good or service has not yet been provided in connection with the prepayment. The table below summarizes the change in the contract liabilities. September 30, 2020 December 31, 2019 Amounts recognized in revenues (In millions) Deferred revenues (1) $ 44 $ 48 $ 23 The table below summarizes the timing of recognition of these contract liabilities as of September 30, 2020. 2020 2021 2022 2023 2024 and After (In millions) Deferred revenues (1) $ 17 $ 7 $ 6 $ 6 $ 8 ____________________ (1) Deferred revenues includes deferred revenue — affiliated companies. This amount is included in Other current liabilities and Other long-term liabilities. Remaining Performance Obligations Our remaining performance obligations consist primarily of firm arrangements and minimum volume commitment arrangements. Upon completion of the performance obligations associated with these arrangements, customers are invoiced and revenue is recognized as Service revenues in the Condensed Consolidated Statements of Income. The table below summarizes the timing of recognition of the remaining performance obligations as of September 30, 2020. 2020 2021 2022 2023 2024 and After (In millions) Transportation and Storage $ 119 $ 419 $ 350 $ 326 $ 1,187 Gathering and Processing 31 121 123 121 313 Total remaining performance obligations $ 150 $ 540 $ 473 $ 447 $ 1,500 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The table below summarizes the operating leases included in the Condensed Consolidated Balance Sheets. Balance Sheet Location September 30, 2020 December 31, 2019 (In millions) Operating lease asset Other Assets $ 27 $ 37 Total right-of-use assets $ 27 $ 37 Operating lease liabilities Other Current Liabilities $ 5 $ 9 Operating lease liabilities Other Liabilities 25 31 Total lease liabilities $ 30 $ 40 As of September 30, 2020, all lease obligations outstanding were classified as operating leases. Therefore, all cash flows are reflected in Cash Flows from Operating Activities. The following table presents the Partnership’s rental costs associated with field equipment and buildings. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Rental Costs: Field equipment $ 3 $ 6 $ 12 $ 18 Office space 1 1 3 5 As of September 30, 2020, the weighted average remaining lease term is 7.0 years and the weighted average discount rate is 5.47%. The following table presents the Partnership’s lease cost. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Lease Cost: Operating lease cost $ 2 $ 2 $ 5 $ 7 Short-term lease cost 2 4 9 15 Variable lease cost — 1 1 1 Total Lease Cost $ 4 $ 7 $ 15 $ 23 The Partnership recorded short-term lease costs of $1 million in the transportation and storage reportable segment during the three and nine months ended September 30, 2019. All other lease costs were included in the gathering and processing reportable segment. Under ASC 842, as of September 30, 2020 , the Partnership has operating lease obligations expiring at various dates. Undiscounted cash flows for non-cancellable operating lease liabilities are as follows: Non-cancellable operating leases (In millions) Year Ended December 31, 2020 - remainder $ 2 2021 6 2022 5 2023 5 2024 4 2025 3 After 2025 8 Total 33 Impact of the applicable discount rate (3) Total lease liabilities $ 30 |
Earnings Per Limited Partner Un
Earnings Per Limited Partner Unit | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Limited Partner Unit | Earnings Per Limited Partner Unit The following table illustrates the Partnership’s calculation of earnings per unit for common units. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions, except per unit data) Net income (loss) $ (163) $ 133 $ (14) $ 380 Net income (loss) attributable to noncontrolling interest 1 1 (6) 2 Series A Preferred Unit distributions 9 9 27 27 General partner interest in net income — — — — Net income (loss) available to common units $ (173) $ 123 $ (35) $ 351 Net income (loss) allocable to common units $ (173) $ 123 $ (35) $ 351 Dilutive effect of Series A Preferred Unit distributions (2) — — — — Diluted net income (loss) allocable to common units $ (173) $ 123 $ (35) $ 351 Basic weighted average number of common units outstanding (1) 437 437 437 436 Dilutive effect of Series A Preferred Units (2) — — — — Dilutive effect of performance units (3) — — — — Diluted weighted average number of common units outstanding 437 437 437 436 Basic earnings (loss) per unit Common units $ (0.40) $ 0.28 $ (0.08) $ 0.81 Diluted earnings (loss) per unit Common units $ (0.40) $ 0.28 $ (0.08) $ 0.81 ____________________ (1) Basic weighted average number of outstanding common units includes approximately two million time-based phantom units for both the three months ended September 30, 2020 and 2019, and two million and one million time-based phantom units for the nine months ended September 30, 2020 and 2019, respectively. (2) For the three and nine months ended September 30, 2020 and 2019, the issuance of “if-converted” common units attributable to the Series A Preferred Units were excluded in the calculation of diluted earnings (loss) per unit as the impact was anti-dilutive. (3) The contingent effect of performance unit awards is anti-dilutive for the three and nine months ended September 30, 2020. The dilutive effect of the performance unit awards was less than $0.01 per unit during the three and nine months ended September 30, 2019. |
Partners' Equity
Partners' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Partners' Equity | Partners’ Equity The Partnership Agreement requires that, within 60 days after the end of each quarter, the Partnership distribute all of its available cash (as defined in the Partnership Agreement) to unitholders of record on the applicable record date. The Partnership paid or has authorized payment of the following cash distributions to common unitholders, as applicable, during 2020 and 2019 (in millions, except for per unit amounts): Three Months Ended Record Date Payment Date Per Unit Distribution Total Cash Distribution September 30, 2020 (1) November 17, 2020 November 24, 2020 $ 0.16525 $ 72 June 30, 2020 August 18, 2020 August 25, 2020 0.16525 72 March 31, 2020 May 19, 2020 May 27, 2020 0.16525 72 December 31, 2019 February 18, 2020 February 25, 2020 0.3305 144 September 30, 2019 November 19, 2019 November 26, 2019 0.3305 144 June 30, 2019 August 20, 2019 August 27, 2019 0.3305 144 March 31, 2019 May 21, 2019 May 29, 2019 0.318 138 _____________________ (1) The Board of Directors declared a $0.16525 per common unit cash distribution on November 3, 2020, to be paid on November 24, 2020 to common unitholders of record at the close of business on November 17, 2020. The Partnership paid or has authorized payment of the following cash distributions to holders of the Series A Preferred Units during 2020 and 2019 (in millions, except for per unit amounts): Three Months Ended Record Date Payment Date Per Unit Distribution Total Cash Distribution September 30, 2020 (1) November 3, 2020 November 13, 2020 $ 0.625 $ 9 June 30, 2020 August 4, 2020 August 14, 2020 0.625 9 March 31, 2020 May 5, 2020 May 15, 2020 0.625 9 December 31, 2019 February 7, 2020 February 14, 2020 0.625 9 September 30, 2019 November 5, 2019 November 14, 2019 0.625 9 June 30, 2019 August 2, 2019 August 14, 2019 0.625 9 March 31, 2019 April 29, 2019 May 15, 2019 0.625 9 _____________________ (1) The Board of Directors declared a $0.625 per Series A Preferred Unit cash distribution on November 3, 2020, to be paid on November 13, 2020, to Series A Preferred unitholders of record at the close of business on November 3, 2020. ATM Program On May 12, 2017, the Partnership entered into an ATM Equity Offering Sales Agreement, pursuant to which the Partnership may issue and sell common units having an aggregate offering price of up to $200 million, by sales methods and at prices determined by market conditions and other factors at the time of our offerings. The registration statement filed with the SEC for the ATM Program expired on May 12, 2020, and the Partnership did not file a replacement registration statement. |
Impairment of Long-lived Assets
Impairment of Long-lived Assets and Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Impairment of Long-lived Assets and Goodwill [Abstract] | |
Impairment of Long-lived Assets and Goodwill [Text Block] | (7) Impairments of Property, Plant and Equipment and Goodwill Impairment of Property, Plant and Equipment The Partnership periodically evaluates property, plant and equipment for impairment when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. The determination of whether an impairment has occurred is based on an estimate of undiscounted cash flows attributable to the assets, as compared to the carrying value of the assets. Due to decreases in natural gas and NGL market prices during 2020 as a result of the ongoing COVID-19 pandemic and the economic effects of the pandemic, together with the dispute over crude oil production levels between Russia and members of OPEC led by Saudi Arabia, as of March 31, 2020, management reassessed the carrying value of the Atoka assets, in which the Partnership owns a 50% interest in the consolidated joint venture, which is a component of the gathering and processing segment. Based on forecasted future undiscounted cash flows, management determined that the carrying value of the Atoka assets were not fully recoverable. The Partnership utilized the income approach (generally accepted valuation approach) to estimate the fair value of these assets. The primary inputs are forecasted cash flows and the discount rate. The fair value measurement is based on inputs that are not observable in the market and thus represent Level 3 inputs. Applying a discounted cash flow model to the property, plant and equipment, the Partnership recognized a $16 million impairment, which is included in Impairments of property, plant and equipment and goodwill on the Condensed Consolidated Statements of Income during the nine months ended September 30, 2020 . Impairment of Goodwill In the fourth quarter of 2017, as a result of the acquisition of ETGP, the Partnership recorded $12 million of goodwill associated with the Ark-La-Tex Basin reporting unit, included in the gathering and processing reportable segment. The Partnership tests its goodwill for impairment annually on October 1st, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. Goodwill is assessed for impairment by comparing the fair value of the reporting unit with its book value, including goodwill. During 2020, the commodity price declines due to the existing oversupply of crude oil, NGLs and natural gas were exacerbated by t he ongoing COVID-19 pandemic and the economic effects of the pandemic, in addition to the dispute over crude oil production levels between Russia and members of OPEC led by Saudi Arabia in the first quarter . Despite the subsequent agreement in April 2020 by a coalition of nations including Russia and Saudi Arabia to reduce production of crude oil, the price of NGLs and crude oil have remained significantly lower than pre-pandemic levels. Amid such crude oil, NGL and natural gas price declines, producers have been cutting back spending and shifting their focus from emphasizing reserves growth, to increasing net cash flows and reducing outstanding debt, which consequently resulted in a decrease in rig count and in forecasted producer activity in the Ark-La-Tex Basin reporting unit during the first quarter of 2020. At the same time, unit prices and market multiples for midstream companies with gathering and processing operations have dropped to their lowest levels in the last three years. Due to the continuing decrease in forward commodity prices, the reduction in forecasted producer activities, the resulting decrease in our forecasted cash flows and the increase in the weighted average cost of capital, the Partnership determined that the fair value of the goodwill associated with our Ark-La-Tex Basin reporting unit would more likely than not be impaired. As a result, the Partnership performed a quantitative test for our goodwill and determined that the carrying value of the Ark-La-Tex Basin reporting unit exceeded its fair value and that goodwill associated with the Ark-La-Tex Basin was completely impaired in the amount of $12 million. The impairment is included in Impairments of property, plant and equipment and goodwill on the Condensed Consolidated Statements of Income for the nine months ended September 30, 2020. The following table presents the change in carrying amount of goodwill in each of our reportable segments. Gathering and Processing Transportation and Storage Total (In millions) Balance as of December 31, 2019 $ 12 $ — $ 12 Goodwill impairment (12) — (12) Balance as of September 30, 2020 $ — $ — $ — |
Investment in Equity Method Aff
Investment in Equity Method Affiliate | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Equity Method Affiliate | Investment in Equity Method Affiliate The Partnership uses the equity method of accounting for investments in entities in which it has an ownership interest between 20% and 50% and exercises significant influence. SESH is owned 50% by Enbridge, Inc. and 50% by the Partnership. Pursuant to the terms of the SESH LLC Agreement, if, at any time, CenterPoint Energy has a right to receive less than 50% of our distributions through its interest in the Partnership and its economic interest in Enable GP, or does not have the ability to exercise certain control rights, Enbridge, Inc. may, under certain circumstances, have the right to purchase the Partnership’s interest in SESH at fair market value, subject to certain exceptions. At September 30, 2020, the Partnership estimated the fair value of its investment in SESH was below the carrying value and concluded the decline in value was other than temporary due to the expiration of a transportation contract and the current status of renewal negotiations. As a result, the Partnership recorded a $225 million impairment on its investment in SESH for the three and nine months ended September 30, 2020, which is included in Equity in earnings (losses) of equity method affiliate, net in the Partnership’s Condensed Consolidated Statements of Income. The impairment analysis of the Partnership’s investment in SESH compared the estimated fair value of the investment to its carrying value. The fair value of the investment was determined using multiple valuation methodologies under both the market and income approaches. Due to the significant unobservable estimates and assumptions required, the Partnership concluded that the fair value estimate should be classified as a Level 3 measurement within the fair value hierarchy. The basis difference for our investment in SESH has been assigned to its property, plant and equipment and will be amortized over its approximately 50-year remaining useful life. See Note 1 for further information concerning the method used to evaluate and measure the impairment on the Partnership’s investment in SESH. The Partnership shares operations of SESH with Enbridge, Inc. under service agreements. The Partnership is responsible for the field operations of SESH. SESH reimburses each party for actual costs incurred, which are billed based upon a combination of direct charges and allocations. The Partnership billed SESH $3 million and $2 million during the three months ended September 30, 2020 and 2019, respectively, and $11 million and $12 million during the nine months ended September 30, 2020 and 2019, respectively, associated with these service agreements. The Partnership includes equity in earnings of equity method affiliate, net under the Other Income (Expense) caption in the Condensed Consolidated Statements of Income. The following table presents the amount of Equity in earnings of equity method affiliate recognized, Impairment of equity method affiliate investment and Distributions from equity method affiliate received. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Equity in earnings of equity method affiliate $ 3 $ 5 $ 14 $ 12 Impairment of equity method affiliate investment (225) — (225) — Equity in earnings (losses) of equity method affiliate, net $ (222) $ 5 $ (211) $ 12 Distributions from equity method affiliate (1) $ 4 $ 4 $ 23 $ 20 ___________________ (1) Distributions from equity method affiliate includes a $14 million and $12 million return on investment and a $9 million and $8 million return of investment for the nine months ended September 30, 2020 and 2019, respectively. The following table includes the summarized financial information of SESH. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Income Statements: Revenues $ 24 $ 27 $ 79 $ 81 Operating income 11 15 40 37 Net income 6 10 27 24 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table presents the Partnership’s outstanding debt. September 30, 2020 December 31, 2019 Outstanding Principal Discount (1) Total Debt Outstanding Principal Premium (Discount) (1) Total Debt (In millions) Commercial Paper $ 334 $ — $ 334 $ 155 $ — $ 155 Revolving Credit Facility — — — — — — 2019 Term Loan Agreement 800 — 800 800 — 800 2024 Notes 600 — 600 600 — 600 2027 Notes 700 (2) 698 700 (2) 698 2028 Notes 800 (5) 795 800 (5) 795 2029 Notes 547 (1) 546 550 (1) 549 2044 Notes 531 — 531 550 — 550 EOIT Senior Notes — — — 250 1 251 Total debt $ 4,312 $ (8) $ 4,304 $ 4,405 $ (7) $ 4,398 Less: Short-term debt (2) 334 155 Less: Current portion of long-term debt (3) — 251 Less: Unamortized debt expense (4) 20 23 Total long-term debt $ 3,950 $ 3,969 ____________________ (1) Unamortized premium (discount) on long-term debt is amortized over the life of the respective debt. (2) Short-term debt includes $334 million and $155 million of outstanding commercial paper as of September 30, 2020 and December 31, 2019, respectively. (3) As of December 31, 2019, Current portion of long-term debt included $251 million outstanding balance of the EOIT Senior Notes which were repaid in March 2020. (4) As of September 30, 2020 and December 31, 2019, there was an additional $3 million and $4 million, respectively, of unamortized debt expense related to the Revolving Credit Facility included in Other assets, not included above. Commercial Paper The Partnership has a commercial paper program, pursuant to which the Partnership is authorized to issue up to $1.4 billion of commercial paper. The commercial paper program is supported by our Revolving Credit Facility, and outstanding commercial paper effectively reduces our borrowing capacity thereunder. There were $334 million and $155 million outstanding under our commercial paper program at September 30, 2020 and December 31, 2019 , respectively. A s of September 30, 2020, the weighted average interest rate for the outstanding commercial paper was 0.77%. Revolving Credit Facility The Partnership’s Revolving Credit Facility is a $1.75 billion, five-year senior unsecured revolving credit facility, which under certain circumstances may be increased from time to time up to an additional $875 million. The Revolving Credit Facility is scheduled to mature on April 6, 2023, subject to an extension option, which could be exercised two times to extend the term of the Revolving Credit Facility, in each case, for an additional one-year term. As of September 30, 2020, there were zero principal advances, $3 million in letters of credit outstanding and our available borrowing capacity was approximately $775 million under our Revolving Credit Facility. The Revolving Credit Facility provides that outstanding borrowings bear interest at the LIBOR and/or an alternate base rate, at the Partnership’s election, plus an applicable margin. The applicable margin is based on the Partnership’s designated credit ratings from S&P, Moody’s and Fitch Ratings. As of September 30, 2020, the applicable margin for LIBOR-based borrowings under the Revolving Credit Facility was 1.50% based on the Partnership’s credit ratings. In addition, the Revolving Credit Facility requires the Partnership to pay a fee on unused commitments. The commitment fee is based on the Partnership’s credit ratings. As of September 30, 2020, the commitment fee under the restated Revolving Credit Facility was 0.20% per annum based on the Partnership’s credit ratings. The commitment fee is recorded as interest expense in the Partnership’s Condensed Consolidated Statements of Income. 2019 Term Loan Agreement On January 29, 2019, the Partnership entered into an unsecured term loan agreement with Bank of America, N.A., as administrative agent, and the several lenders thereto. As of September 30, 2020, there was $800 million outstanding under the 2019 Term Loan Agreement. The 2019 Term Loan Agreement has a scheduled maturity date of January 29, 2022, but contains an option, which may be exercised up to two times, to extend the maturity date for an additional one-year term. The 2019 Term Loan Agreement provides that outstanding borrowings bear interest at the eurodollar rate and/or an alternate base rate, at the Partnership’s election, plus an applicable margin. The applicable margin is based on the Partnership’s credit ratings. The applicable margin shall equal, (1) in the case of interest rates determined by reference to the eurodollar rate, between 0.75% and 1.50% per annum and (2) in the case of interest rates determined by reference to the alternate base rate, between 0% and 0.50% per annum. As of September 30, 2020, the applicable margin for LIBOR-based advances under the 2019 Term Loan Facility was 1.25% based on the Partnership’s credit ratings. As of September 30, 2020, the weighted average interest rate of the 2019 Term Loan Agreement was 2.11%, including the impact of the associated interest rate derivatives designated as hedging instruments for accounting purposes. Senior Notes As of September 30, 2020, the Partnership’s debt included the 2024 Notes, 2027 Notes, 2028 Notes, 2029 Notes and 2044 Notes, which had $8 million of unamortized discount and $20 million of unamortized debt expense at September 30, 2020, resulting in effective interest rates of 4.01%, 4.56%, 5.19%, 4.29% and 4.99%, respectively, during the nine months ended September 30, 2020. In March 2020, the Partnership’s EOIT Senior Notes matured and were paid using proceeds from the Revolving Credit Facility. During the nine months ended September 30, 2020, the Partnership repurchased $22 million aggregate principal amount of the 2029 Notes and 2044 Notes in open market transactions for approximately $17 million plus accrued interest, which resulted in a $5 million gain on extinguishment of debt. The gain is included in Other, net in the Condensed Consolidated Statements of Income. As of September 30, 2020, the Partnership was in compliance with all of its debt agreements, including financial covenants. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The primary risks managed using derivative instruments are commodity price and interest rate risks. Derivatives Not Designated as Hedging Instruments Derivative instruments not designated as hedging instruments for accounting purposes are utilized to manage the Partnership’s exposure to commodity price risk. For derivative instruments not designated as hedging instruments, the gain or loss on the derivative is recognized currently in earnings. Quantitative Disclosures Related to Derivative Instruments Not Designated as Hedging Instruments The following table presents the Partnership’s derivative instruments that were not designated as hedging instruments for accounting purposes. September 30, 2020 December 31, 2019 Gross Notional Volume Purchases Sales Purchases Sales Natural gas— TBtu (1) Financial fixed futures/swaps 4 25 10 19 Financial basis futures/swaps 3 32 11 30 Financial swaptions (2) — 8 — 2 Physical purchases/sales — 1 — 6 Crude oil (for condensate)— MBbl (3) Financial futures/swaps — 540 — 990 Financial swaptions (2) — 90 — 225 Natural gas liquids— MBbl (4) Financial futures/swaps 1,395 1,410 2,490 2,415 Financial options — 75 — — ____________________ (1) As of September 30, 2020, 91.9% of the natural gas contracts had durations of one year or less and 8.1% had durations of more than one year and less than two years. As of December 31, 2019, 86.6% of the natural gas contracts had durations of one year or less and 13.4% had durations of more than one year and less than two years. (2) The notional volume contains a combined derivative instrument consisting of a fixed price swap and a sold option, which gives the counterparties the right, but not the obligation, to increase the notional volume hedged under the fixed price swap until the option expiration date. The notional volume represents the volume prior to option exercise. (3) As of September 30, 2020, 92.9% of the crude oil (for condensate) contracts had durations of one year or less and 7.1% had durations of more than one year and less than two years. As of December 31, 2019, 72.8% of the crude oil (for condensate) contracts had durations of one year or less and 27.2% had durations of more than one year and less than two years. (4) As of September 30, 2020, 97.3% of the natural gas liquids contracts had durations of one year or less and 2.7% had durations of more than one year and less than two years. As of December 31, 2019, 72.2% of the natural gas liquids contracts had durations of one year or less and 27.8% had durations of more than one year and less than two years. Derivatives Designated as Hedging Instruments Derivative instruments designated as hedging instruments for accounting purposes are utilized in managing the Partnership’s interest rate risk exposures. Quantitative Disclosures Related to Derivative Instruments Designated as Hedging Instruments The following table presents the Partnership’s derivative instruments that were designated as hedging instruments for accounting purposes. September 30, 2020 December 31, 2019 Gross Notional Value (In millions) Interest rate swaps $ 300 $ 300 Balance Sheet Presentation Related to Derivative Instruments The following table presents the fair value of the derivative instruments that are included in the Partnership’s Condensed Consolidated Balance Sheets that were not designated as hedging instruments for accounting purposes. September 30, 2020 December 31, 2019 Fair Value Instrument Balance Sheet Location Assets Liabilities Assets Liabilities (In millions) Natural gas Financial futures/swaps Other Current $ 1 $ 7 $ 7 $ 5 Financial swaptions Other Current — 4 — — Physical purchases/sales Other Current — 2 5 — Financial futures/swaps Other — — — 1 Crude oil (for condensate) Financial futures/swaps Other Current 1 13 1 19 Financial swaptions Other Current 2 — — — Financial futures/swaps Other — 1 — 8 Natural gas liquids Financial futures/swaps Other Current 17 1 25 3 Financial futures/swaps Other 1 — 11 2 Total gross commodity derivatives (1) $ 22 $ 28 $ 49 $ 38 _____________________ (1) See Note 11 for a reconciliation of the Partnership’s commodity derivatives fair value to the Partnership’s Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019. The following table presents the fair value of the derivative instruments that are included in the Partnership’s Condensed Consolidated Balance Sheets that were designated as hedging instruments for accounting purposes. September 30, 2020 December 31, 2019 Fair Value Instrument Balance Sheet Location Assets Liabilities Assets Liabilities (In millions) Interest rate swaps Other Current $ — $ 5 $ — $ 1 Interest rate swaps Other — 2 — 2 Total gross interest rate derivatives (1) $ — $ 7 $ — $ 3 _____________________ (1) All interest rate derivative instruments that were designated as cash flow hedges are considered Level 2 as of September 30, 2020 and December 31, 2019. Income Statement Presentation Related to Derivative Instruments The following table presents the effect of derivative instruments on the Partnership’s Condensed Consolidated Statements of Income. Amounts Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Natural gas Financial futures/swaps gains (losses) $ (5) $ 2 $ (2) $ 10 Financial swaptions gains (losses) (4) — (6) — Physical purchases/sales gains (losses) (1) 1 — 1 Crude oil (for condensate) Financial futures/swaps gains (losses) — (8) 12 (29) Financial swaptions gains (losses) — — 2 — Natural gas liquids Financial futures/swaps gains (losses) — 13 (1) 32 Total $ (10) $ 8 $ 5 $ 14 For derivatives not designated as hedges in the tables above, amounts recognized in income for the periods ended September 30, 2020 and 2019, if any, are reported in Product sales. The following table presents the components of gain (loss) on derivative activity in the Partnership’s Condensed Consolidated Statements of Income. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Change in fair value of commodity derivatives $ (15) $ (2) $ (17) $ (3) Realized gain on commodity derivatives 5 10 22 17 Gain (loss) on commodity derivative activity $ (10) $ 8 $ 5 $ 14 The following table presents the effect of derivative instruments that were designated as hedging instruments on the Partnership’s Condensed Consolidated Statements of Income. Amounts Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Interest rate swaps losses $ (2) $ — $ (3) $ — Total $ (2) $ — $ (3) $ — Interest rate derivatives designated as hedges are recognized in income once settled. Settlement amounts recognized in income for the periods ended September 30, 2020 and 2019 are reported in Interest expense. Credit-Risk Related Contingent Features in Derivative Instruments In the event Moody’s or S&P were to lower the Partnership’s senior unsecured debt rating to a below investment grade rating, the Partnership could be required to provide additional credit assurances to third parties, which could include letters of credit or cash collateral to satisfy its obligation under its financial and physical contracts relating to derivative instruments that are in a net liability position. As of September 30, 2020, under these obligations, the Partnership has posted no cash collateral related to natural gas swaps and swaptions, crude oil swaps and swaptions and NGL swaps and $3 million of additional |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are recorded at fair value in the Condensed Consolidated Balance Sheets and are categorized based upon the level of judgment associated with the inputs used to measure their value. The Partnership determines the appropriate level for each financial asset and liability on a quarterly basis and recognizes transfers between levels at the end of the reporting period. For the three and nine months ended September 30, 2020, there were no transfers between levels. As of September 30, 2020, there were no contracts classified as Level 3. Estimated Fair Value of Financial Instruments The fair values of all accounts receivable, notes receivable, accounts payable, commercial paper and other such financial instruments on the Condensed Consolidated Balance Sheets are estimated to be approximately equivalent to their carrying amounts due to their short-term nature and have been excluded from the table below. The following table summarizes the fair value and carrying amount of the Partnership’s financial instruments. September 30, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Debt Revolving Credit Facility (Level 2) (1) $ — $ — $ — $ — 2019 Term Loan Agreement (Level 2) 800 800 800 800 2024 Notes (Level 2) 600 591 600 614 2027 Notes (Level 2) 698 674 698 698 2028 Notes (Level 2) 795 784 795 811 2029 Notes (Level 2) 546 505 549 526 2044 Notes (Level 2) 531 448 550 506 EOIT Senior Notes (Level 2) — — 251 252 ____________________ (1) Borrowing capacity is effectively reduced by our borrowings outstanding under the commercial paper program. $334 million and $155 million of commercial paper was outstanding as of September 30, 2020 and December 31, 2019, respectively. The fair value of the Partnership’s Revolving Credit Facility, 2019 Term Loan Agreement, 2024 Notes, 2027 Notes, 2028 Notes, 2029 Notes, 2044 Notes and EOIT Senior Notes is based on quoted market prices and estimates of current rates available for similar issues with similar maturities and is classified as Level 2 in the fair value hierarchy. Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). As of September 30, 2020, no material fair value adjustments or fair value measurements were required for these non-financial assets or liabilities, other than those discussed in Note 7 and Note 8. Based upon review of forecast undiscounted cash flows as of September 30, 2020, all of the asset groups were considered recoverable, other than those discussed in Note 7. Based upon review for other than temporary declines in fair value, the investment in equity method affiliate was considered recoverable, other than as discussed in Note 8. Future price declines, throughput declines, contracted capacity declines, cost increases, regulatory or political environment changes and other changes in market conditions, including the oversupply of crude oil, NGLs and natural gas as well as the ongoing COVID-19 pandemic and the economic effects of the pandemic, could reduce forecast undiscounted cash flows for the asset groups and result in other than temporary declines in the fair value of the investment in equity method affiliate. Contracts with Master Netting Arrangements As of September 30, 2020, the Partnership’s Level 2 interest rate derivatives are recorded as liabilities with no netting adjustments. The following tables summarize the Partnership’s other assets and liabilities that are measured at fair value on a recurring basis. September 30, 2020 Commodity Contracts Gas Imbalances (1) Assets Liabilities Assets (2) Liabilities (3) (In millions) Quoted market prices in active market for identical assets (Level 1) $ 1 $ 22 $ — $ — Significant other observable inputs (Level 2) 21 6 16 11 Total fair value 22 28 16 11 Netting adjustments (22) (22) — — Total $ — $ 6 $ 16 $ 11 December 31, 2019 Commodity Contracts Gas Imbalances (1) Assets Liabilities Assets (2) Liabilities (3) (In millions) Quoted market prices in active market for identical assets (Level 1) $ 5 $ 31 $ — $ — Significant other observable inputs (Level 2) 44 7 14 11 Total fair value 49 38 14 11 Netting adjustments (37) (37) — — Total $ 12 $ 1 $ 14 $ 11 ______________________ (1) The Partnership uses the market approach to fair value its gas imbalance assets and liabilities at individual, or where appropriate an average of, current market indices applicable to the Partnership’s operations, not to exceed net realizable value. There were no netting adjustments as of September 30, 2020 and December 31, 2019. (2) Gas imbalance assets exclude fuel reserves for under retained fuel due from shippers of $22 million and $21 million at September 30, 2020 and December 31, 2019, respectively, which fuel reserves are based on the value of natural gas at the time the imbalance was created, and which are not subject to revaluation at fair market value. (3) Gas imbalance liabilities exclude fuel reserves for over retained fuel due to shippers of $3 million and $8 million at September 30, 2020 and December 31, 2019, respectively, which fuel reserves are based on the value of natural gas at the time the imbalance was created, and which are not subject to revaluation at fair market value. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosure of Cash Flow Information | Supplemental Disclosure of Cash Flow Information The following table provides information regarding supplemental cash flow information: Nine Months Ended September 30, 2020 2019 (In millions) Supplemental Disclosure of Cash Flow Information: Cash Payments: Interest, net of capitalized interest $ 129 $ 131 Income taxes, net of refunds 1 1 Non-cash transactions: Accounts payable related to capital expenditures 9 26 Lease liabilities related to (derecognition) recognition of right-of-use assets (5) 42 Impact of adoption of financial instruments-credit losses accounting standard (Note 1) (3) — The following table reconciles cash and cash equivalents and restricted cash on the Condensed Consolidated Balance Sheets to cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows: September 30, 2020 2019 (In millions) Cash and cash equivalents $ 18 $ 12 Restricted cash — 1 Cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 18 $ 13 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions MRT provides firm transportation and firm storage services to CenterPoint Energy’s LDCs in Arkansas and Louisiana. As part of the MRT rate case settlements, contracts for these services were extended and are in effect through July 31, 2028 and will remain in effect thereafter unless and until terminated by either party upon twelve months’ prior written notice. EGT provides natural gas transportation and storage services to CenterPoint Energy’s LDCs in Arkansas, Louisiana, Oklahoma and Northeast Texas under a combination of contracts that include the following types of services: firm transportation, firm transportation with seasonal demand, firm storage, no-notice transportation with storage and maximum rate firm transportation. The firm transportation, firm transportation with seasonal demand, firm storage and no-notice transportation with storage contracts were extended and have terms running through March 31, 2030. The maximum rate firm transportation contracts were also extended and have terms running through March 31, 2024. The Partnership’s revenues from affiliated companies accounted for 6% of total revenues during both the nine months ended September 30, 2020 and 2019. The following table presents the amounts of revenues from affiliated companies included in the Partnership’s Condensed Consolidated Statements of Income. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Gas transportation and storage service revenues — CenterPoint Energy $ 17 $ 22 $ 76 $ 78 Natural gas product sales — CenterPoint Energy — 3 1 7 Gas transportation and storage service revenues — OGE Energy 9 9 28 35 Natural gas product sales — OGE Energy 4 4 9 5 Total revenues — affiliated companies $ 30 $ 38 $ 114 $ 125 The following table presents the amounts of natural gas purchased from affiliated companies included in the Partnership’s Condensed Consolidated Statements of Income. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Cost of natural gas purchases — CenterPoint Energy $ — $ — $ 1 $ — Cost of natural gas purchases — OGE Energy 6 12 20 25 Total cost of natural gas purchases — affiliated companies $ 6 $ 12 $ 21 $ 25 Corporate services and seconded employees The Partnership receives services and support functions from each of CenterPoint Energy and OGE Energy under services agreements for an initial term that ended on April 30, 2016. The services agreements automatically extend year-to-year at the end of the initial term, unless terminated by the Partnership with at least 90 days’ notice prior to the end of any extension. Additionally, the Partnership may terminate the services agreements at any time with 180 days’ notice, if approved by the Board of Enable GP. The Partnership reimburses CenterPoint Energy and OGE Energy for these services up to annual caps, which for 2020 are zero and $1 million, respectively. As of September 30, 2020 , the Partnership had certain employees who are participants under OGE Energy’s defined benefit and retiree medical plans, who will remain seconded to the Partnership, subject to certain termination rights of the Partnership and OGE Energy. The Partnership’s reimbursement of OGE Energy for seconded employee costs arising out of OGE Energy’s defined benefit and retiree medical plans is fixed at actual cost subject to an annual cap of $5 million until secondment is terminated. The following table presents the amounts charged to the Partnership by affiliates for seconded employees, included primarily in Operation and maintenance and General and administrative expenses in the Partnership’s Condensed Consolidated Statements of Income. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Seconded Employee Costs — OGE Energy $ 5 $ 4 $ 13 $ 15 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Partnership is routinely involved in legal, environmental, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies regarding matters arising in the ordinary course of business. Some of these proceedings may from time to time involve substantial amounts. The Partnership regularly analyzes current information and, as necessary, provides accruals for probable liabilities on the eventual disposition of these matters. The Partnership does not currently expect the disposition of these matters to have a material adverse effect on its financial condition, results of operations or cash flows. On January 1, 2017, the Partnership entered into a 10-year gathering and processing agreement, which became effective on July 1, 2018, with an affiliate of Energy Transfer Partners, LP for deliveries to the Godley Plant in Johnson County, Texas. As of September 30, 2020, the Partnership estimates the remaining associated minimum volume commitment fee to be $175 million. Minimum volume commitment fees are expected to be $3 million for the remainder of 2020, $23 million per year from 2021 through 2027 and $11 million in 2028. On September 13, 2018, the Partnership executed a precedent agreement for the development of the Gulf Run Pipeline, an interstate natural gas transportation project. On January 30, 2019, a final investment decision was made by Golden Pass LNG, the cornerstone shipper for the liquefied natural gas facility to be served by the Gulf Run Pipeline project. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation The following table summarizes the Partnership’s equity-based compensation expense related to performance units and phantom units for the Partnership’s employees and independent directors. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Performance units $ 1 $ 3 $ 5 $ 8 Phantom units 2 1 5 5 Total compensation expense $ 3 $ 4 $ 10 $ 13 The following table presents the assumptions related to the performance share units granted in 2020. 2020 Number of units granted 933,738 Fair value of units granted $ 7.00 Expected distribution yield 12.27 % Expected price volatility 27.70 % Risk-free interest rate 0.85 % Expected life of units (in years) 3 The following table presents the number of phantom units granted and the grant date fair value related to the phantom units granted in 2020. 2020 Phantom Units granted 967,095 Fair value of phantom units granted $2.67 - $10.13 Units Outstanding A summary of the activity for the Partnership’s performance units and phantom units applicable to the Partnership’s employees at September 30, 2020 and changes during 2020 are shown in the following table. Performance Units Phantom Units Number Weighted Average Grant-Date Fair Value, Per Unit Number Weighted Average Grant-Date Fair Value, Per Unit (In millions, except unit data) Units outstanding at December 31, 2019 1,393,329 $ 19.04 1,392,560 $ 14.65 Granted (1) 933,738 7.00 967,095 6.51 Vested (2) (387,174) 19.23 (378,192) 15.99 Forfeited (154,534) 14.39 (189,397) 10.47 Units outstanding at September 30, 2020 1,785,359 $ 13.11 1,792,066 $ 10.42 Aggregate intrinsic value of units outstanding at September 30, 2020 $ 7 $ 7 _____________________ (1) Performance units represents the target number of performance units granted. The actual number of performance units earned, if any, is dependent upon performance and may range from 0% to 200% of the target. (2) Performance units vested as of September 30, 2020 include 376,292 units from the 2017 annual grant, which were approved by the Board of Directors in 2017 and, based on the level of achievement of a performance goal established by the Board of Directors over the performance period of January 1, 2017 through December 31, 2019, no performance units vested. Unrecognized Compensation Cost The following table summarizes the Partnership’s unrecognized compensation cost for its non-vested performance units and phantom units, and the weighted-average periods over which the compensation cost is expected to be recognized. September 30, 2020 Unrecognized Compensation Cost Weighted Average Period for Recognition Performance Units $ 11 1.68 Phantom Units 8 1.53 Total $ 19 As of September 30, 2020, there were 5,294,366 units available for issuance under the long-term incentive plan. |
Reportable Segments
Reportable Segments | 9 Months Ended | |
Sep. 30, 2020 | ||
Segment Reporting [Abstract] | ||
Reportable Segments | Reportable Segments The Partnership’s determination of reportable segments considers the strategic operating units under which it manages sales, allocates resources and assesses performance of various products and services to customers in differing regulatory environments. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies excerpt in the Partnership’s audited 2019 Consolidated Financial Statements included in the Annual Report. The Partnership uses operating income as the measure of profit or loss for its reportable segments. The Partnership’s assets and operations are organized into two reportable segments: (i) gathering and processing, which primarily provides natural gas and crude oil gathering and natural gas processing services to our producer customers, and (ii) transportation and storage, which provides interstate and intrastate natural gas pipeline transportation and storage service primarily to our producer, power plant, LDC and industrial end-user customers. Financial data for reportable segments are as follows: Three Months Ended September 30, 2020 Gathering and Transportation (1) and Storage Eliminations Total (In millions) Product sales $ 271 $ 79 $ (70) $ 280 Service revenues 192 126 (2) 316 Total Revenues 463 205 (72) 596 Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) 244 78 (72) 250 Operation and maintenance, General and administrative 77 47 — 124 Depreciation and amortization 75 30 — 105 Taxes other than income tax 10 7 — 17 Operating income $ 57 $ 43 $ — $ 100 Total Assets $ 9,525 $ 5,524 $ (3,274) $ 11,775 Capital expenditures $ 21 $ 29 $ — $ 50 Three Months Ended September 30, 2019 Gathering and Transportation (1) and Storage Eliminations Total (In millions) Product sales $ 294 $ 100 $ (74) $ 320 Service revenues 248 134 (3) 379 Total Revenues 542 234 (77) 699 Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) 238 102 (77) 263 Operation and maintenance, General and administrative 79 57 — 136 Depreciation and amortization 77 31 — 108 Taxes other than income tax 10 7 — 17 Operating income $ 138 $ 37 $ — $ 175 Total assets as of December 31, 2019 $ 9,739 $ 5,886 $ (3,359) $ 12,266 Capital expenditures $ 70 $ 31 $ — $ 101 Nine Months Ended September 30, 2020 Gathering and Transportation (1) and Storage Eliminations Total (In millions) Product sales $ 739 $ 213 $ (188) $ 764 Service revenues 592 409 (6) 995 Total Revenues 1,331 622 (194) 1,759 Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) 631 215 (193) 653 Operation and maintenance, General and administrative 250 137 (1) 386 Depreciation and amortization 223 91 — 314 Impairments of property, plant and equipment and goodwill 28 — — 28 Taxes other than income tax 32 20 — 52 Operating income $ 167 $ 159 $ — $ 326 Total Assets $ 9,525 $ 5,524 $ (3,274) $ 11,775 Capital expenditures $ 79 $ 73 $ — $ 152 Nine Months Ended September 30, 2019 Gathering and Transportation (1) and Storage Eliminations Total (In millions) Product sales $ 1,096 $ 381 $ (321) $ 1,156 Service revenues 663 421 (11) 1,073 Total Revenues 1,759 802 (332) 2,229 Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) 895 394 (331) 958 Operation and maintenance, General and administrative 238 152 (1) 389 Depreciation and amortization 229 94 — 323 Taxes other than income tax 31 21 — 52 Operating income $ 366 $ 141 $ — $ 507 Total assets as of December 31, 2019 $ 9,739 $ 5,886 $ (3,359) $ 12,266 Capital expenditures $ 267 $ 86 $ — $ 353 _____________________ (1) See Note 8 for discussion regarding ownership interests in SESH and related equity earnings included in the transportation and storage segment for the three and nine months ended September 30, 2020 and 2019. | [1] |
[1] | See Note 8 for discussion regarding ownership interests in SESH and related equity earnings included in the transportation and storage segment for the three and nine months ended September 30, 2020 and 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Enable Midstream Partners, LP is a Delaware limited partnership whose assets and operations are organized into two reportable segments: (i) gathering and processing and (ii) transportation and storage. The gathering and processing segment primarily provides natural gas and crude oil gathering and natural gas processing services to our producer customers. The transportation and storage segment provides interstate and intrastate natural gas pipeline transportation and storage services primarily to our producer, power plant, LDC and industrial end-user customers. The Partnership’s natural gas gathering and processing assets are primarily located in Oklahoma, Texas, Arkansas and Louisiana and serve natural gas production in the Anadarko, Arkoma and Ark-La-Tex Basins. Crude oil gathering assets are located in Oklahoma and serve crude oil production in the SCOOP and STACK plays of the Anadarko Basin and in North Dakota and serve crude oil production in the Bakken Shale formation of the Williston Basin. The Partnership’s natural gas transportation and storage assets consist primarily of an interstate pipeline system extending from western Oklahoma and the Texas Panhandle to Louisiana, an interstate pipeline system extending from Louisiana to Illinois, an intrastate pipeline system in Oklahoma, and our investment in SESH, a pipeline extending from Louisiana to Alabama. CenterPoint Energy and OGE Energy each have 50% of the management interests in Enable GP. Enable GP is the general partner of the Partnership and has no other operating activities. Enable GP is governed by a board made up of two representatives designated by each of CenterPoint Energy and OGE Energy, along with the Partnership’s Chief Executive Officer and three independent board members CenterPoint Energy and OGE Energy mutually agreed to appoint. CenterPoint Energy and OGE Energy also own a 40% and 60% interest, respectively, in the incentive distribution rights held by Enable GP. As of September 30, 2020, CenterPoint Energy held approximately 53.7% or 233,856,623 of the Partnership’s common units, and OGE Energy held approximately 25.5% or 110,982,805 of the Partnership’s common units. Additionally, CenterPoint Energy holds 14,520,000 Series A Preferred Units. The limited partner interests of the Partnership have limited voting rights on matters affecting the business. As such, limited partners do not have rights to elect the Partnership’s general partner on an annual or continuing basis and may not remove Enable GP, its current general partner, without at least a 75% vote by all unitholders, including all units held by the Partnership’s limited partners, and Enable GP and its affiliates, voting together as a single class. As of September 30, 2020, the Partnership owned a 50% interest in SESH. See Note 8 for further discussion of SESH. For the nine months ended September 30, 2020, the Partnership held a 50% ownership in Atoka and consolidated Atoka in its Condensed Consolidated Financial Statements as EOIT acted as the managing member of Atoka and had control over the operations of Atoka. In addition, the Partnership held a 60% interest in ESCP, which is consolidated in its Condensed Consolidated Financial Statements as EOCS acted as the managing member of ESCP and had control over the operations of ESCP. |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements and related notes of the Partnership have been prepared pursuant to the rules and regulations of the SEC and GAAP. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with GAAP have been omitted. The accompanying Condensed Consolidated Financial Statements and related notes should be read in conjunction with the Consolidated Financial Statements and related notes included in our Annual Report. The Condensed Consolidated Financial Statements and the related notes reflect all normal recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the respective periods. Amounts reported in the Partnership’s Condensed Consolidated Statements of Income are not necessarily indicative of amounts expected for a full-year period due to the effects of, among other things, (a) seasonal fluctuations in demand for energy and energy services, (b) changes in energy commodity prices, (c) timing of maintenance and other expenditures, (d) acquisitions and dispositions of businesses, assets and other interests, and (e) the impact of the ongoing COVID-19 pandemic and the economic effects of the pandemic which have resulted in a substantial decrease in natural gas, NGLs and crude oil prices. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Depreciation Expense | Depreciation ExpenseOn March 26, 2020, FERC issued an order approving MRT’s 2018 Rate Case and 2019 Rate Case settlements. As a result of the settlements, the new depreciation rates for MRT have been applied in accordance with the order. The new depreciation rates did not result in a material change in depreciation expense or results of operations. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Partnership adopted ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2020. Upon adoption, the Partnership recognized a $3 million cumulative adjustment to Partners’ Equity and a corresponding adjustment to Allowance for doubtful accounts. |
Inventory | InventoryNatural gas inventory is held, through the transportation and storage segment, to provide operational support for pipeline deliveries and to manage leased intrastate storage capacity. Natural gas liquids inventory is held, through the gathering and processing segment, due to timing differences between the production of certain natural gas liquids and ultimate sale to third parties. Natural gas and natural gas liquids inventory is valued using moving average cost and is subsequently recorded at the lower of cost or net realizable value. |
Assessing Impairment of Long-lived Assets (including Intangible Assets), Goodwill and Investment in Equity Method Affiliate | Assessing Impairment of Property, Plant and Equipment, Goodwill and Investment in Equity Method Affiliate The Partnership periodically evaluates long-lived assets, including property, plant and equipment, and specifically identifiable intangibles other than goodwill, when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. The determination of whether an impairment has occurred is based on an estimate of undiscounted cash flows attributable to the assets, as compared to the carrying value of the assets. For more information, see Note 7. The Partnership assesses its goodwill for impairment annually on October 1st, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. Goodwill is assessed for impairment by comparing the fair value of the reporting unit with its book value, including goodwill. The Partnership utilizes the market or income approaches to estimate the fair value of the reporting unit, also giving consideration to the alternative cost approach. Under the market approach, historical and current year forecasted cash flows are multiplied by a market multiple to determine fair value. Under the income approach, anticipated cash flows over a period of years plus a terminal value are discounted to present value using appropriate discount rates. The resulting fair value of the reporting unit is then compared to the carrying amount of the reporting unit and an impairment charge is recorded to goodwill for the difference. The Partnership performs its goodwill impairment testing at the reporting unit, which is one level below the transportation and storage and gathering and processing reportable segment level. For more information, see Note 7. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards to be Adopted in Future Periods Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This standard provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The standard was effective upon issuance and generally can be applied through December 31, 2022. The Partnership is currently evaluating the impact this ASU will have on our Condensed Consolidated Financial Statements and related disclosures. |
Derivatives Instruments and Hedging Activities | The primary risks managed using derivative instruments are commodity price and interest rate risks. Derivatives Not Designated as Hedging Instruments Derivative instruments not designated as hedging instruments for accounting purposes are utilized to manage the Partnership’s exposure to commodity price risk. For derivative instruments not designated as hedging instruments, the gain or loss on the derivative is recognized currently in earnings. |
Fair Value Measurements | Certain assets and liabilities are recorded at fair value in the Condensed Consolidated Balance Sheets and are categorized based upon the level of judgment associated with the inputs used to measure their value. The Partnership determines the appropriate level for each financial asset and liability on a quarterly basis and recognizes transfers between levels at the end of the reporting period. For the three and nine months ended September 30, 2020, there were no transfers between levels. As of September 30, 2020, there were no contracts classified as Level 3. |
Reportable Segments | The Partnership’s determination of reportable segments considers the strategic operating units under which it manages sales, allocates resources and assesses performance of various products and services to customers in differing regulatory environments. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies excerpt in the Partnership’s audited 2019 Consolidated Financial Statements included in the Annual Report. The Partnership uses operating income as the measure of profit or loss for its reportable segments.The Partnership’s assets and operations are organized into two reportable segments: (i) gathering and processing, which primarily provides natural gas and crude oil gathering and natural gas processing services to our producer customers, and (ii) transportation and storage, which provides interstate and intrastate natural gas pipeline transportation and storage service primarily to our producer, power plant, LDC and industrial end-user customers. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes the required allowance for doubtful accounts. September 30, 2020 January 1, 2020 (In millions) Accounts receivable $ 2 $ 2 Other assets 3 3 Total Allowance for doubtful accounts $ 5 $ 5 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended | |
Sep. 30, 2020 | ||
Revenue from Contract with Customer [Abstract] | ||
Disaggregation of Revenue | The following tables disaggregate total revenues by major source from contracts with customers and the gain (loss) on derivative activity for the three and nine months ended September 30, 2020 and 2019. Three Months Ended September 30, 2020 Gathering and Transportation Eliminations Total (In millions) Revenues: Product sales: Natural gas $ 58 $ 77 $ (68) $ 67 Natural gas liquids 208 2 (2) 208 Condensate 15 — — 15 Total revenues from natural gas, natural gas liquids, and condensate 281 79 (70) 290 Loss on derivative activity (10) — — (10) Total Product sales $ 271 $ 79 $ (70) $ 280 Service revenues: Demand revenues $ 32 $ 116 $ — $ 148 Volume-dependent revenues 160 10 (2) 168 Total Service revenues $ 192 $ 126 $ (2) $ 316 Total Revenues $ 463 $ 205 $ (72) $ 596 Three Months Ended September 30, 2019 Gathering and Transportation Eliminations Total (In millions) Revenues: Product sales: Natural gas $ 69 $ 95 $ (69) $ 95 Natural gas liquids 191 5 (5) 191 Condensate 26 — — 26 Total revenues from natural gas, natural gas liquids, and condensate 286 100 (74) 312 Gain on derivative activity 8 — — 8 Total Product sales $ 294 $ 100 $ (74) $ 320 Service revenues: Demand revenues $ 97 $ 119 $ — $ 216 Volume-dependent revenues 151 15 (3) 163 Total Service revenues $ 248 $ 134 $ (3) $ 379 Total Revenues $ 542 $ 234 $ (77) $ 699 Nine Months Ended September 30, 2020 Gathering and Transportation Eliminations Total (In millions) Revenues: Product sales: Natural gas $ 161 $ 207 $ (181) $ 187 Natural gas liquids 523 7 (7) 523 Condensate 49 — — 49 Total revenues from natural gas, natural gas liquids, and condensate 733 214 (188) 759 Gain (loss) on derivative activity 6 (1) — 5 Total Product sales $ 739 $ 213 $ (188) $ 764 Service revenues: Demand revenues $ 105 $ 371 $ — $ 476 Volume-dependent revenues 487 38 (6) 519 Total Service revenues $ 592 $ 409 $ (6) $ 995 Total Revenues $ 1,331 $ 622 $ (194) $ 1,759 Nine Months Ended September 30, 2019 Gathering and Transportation Eliminations Total (In millions) Revenues: Product sales: Natural gas $ 291 $ 365 $ (305) $ 351 Natural gas liquids 698 16 (16) 698 Condensate 93 — — 93 Total revenues from natural gas, natural gas liquids, and condensate 1,082 381 (321) 1,142 Gain on derivative activity 14 — — 14 Total Product sales $ 1,096 $ 381 $ (321) $ 1,156 Service revenues: Demand revenues $ 225 $ 373 $ — $ 598 Volume-dependent revenues 438 48 (11) 475 Total Service revenues $ 663 $ 421 $ (11) $ 1,073 Total Revenues $ 1,759 $ 802 $ (332) $ 2,229 | |
Schedule of Accounts Receivable | The following table summarizes the components of accounts receivable, net of allowance for doubtful accounts. September 30, 2020 December 31, 2019 (In millions) Accounts Receivable: Customers $ 233 $ 239 Contract assets (1) 3 18 Non-customers 5 12 Total Accounts Receivable (2) $ 241 $ 269 ____________________ (1) Contract assets reflected in Total Accounts Receivable include accrued minimum volume commitments. Contract assets are primarily attributable to revenues associated with estimated shortfall volumes on certain annual minimum volume commitment arrangements. Total Accounts Receivable does not include contract assets related to firm service transportation contracts with tiered rates of $9 million as of September 30, 2020 and $6 million as of December 31, 2019, which are reflected in Other Assets. (2) Total Accounts Receivable includes Accounts receivable, net of allowance for doubtful accounts and Accounts receivable—affiliated companies. | [1],[2] |
Summary of Timing Recognition of Contract Liabilities | The table below summarizes the change in the contract liabilities. September 30, 2020 December 31, 2019 Amounts recognized in revenues (In millions) Deferred revenues (1) $ 44 $ 48 $ 23 The table below summarizes the timing of recognition of these contract liabilities as of September 30, 2020. 2020 2021 2022 2023 2024 and After (In millions) Deferred revenues (1) $ 17 $ 7 $ 6 $ 6 $ 8 ____________________ (1) Deferred revenues includes deferred revenue — affiliated companies. This amount is included in Other current liabilities and Other long-term liabilities. | [3] |
Summary of Timing Recognition of Remaining Performance Obligations | The table below summarizes the timing of recognition of the remaining performance obligations as of September 30, 2020. 2020 2021 2022 2023 2024 and After (In millions) Transportation and Storage $ 119 $ 419 $ 350 $ 326 $ 1,187 Gathering and Processing 31 121 123 121 313 Total remaining performance obligations $ 150 $ 540 $ 473 $ 447 $ 1,500 | |
[1] | Contract assets reflected in Total Accounts Receivable include accrued minimum volume commitments. Contract assets are primarily attributable to revenues associated with estimated shortfall volumes on certain annual minimum volume commitment arrangements. Total Accounts Receivable does not include contract assets related to firm service transportation contracts with tiered rates of $9 million as of September 30, 2020 and $6 million as of December 31, 2019, which are reflected in Other Assets. | |
[2] | Total Accounts Receivable includes Accounts receivable, net of allowance for doubtful accounts and Accounts receivable—affiliated companies. | |
[3] | Deferred revenues includes deferred revenue — affiliated companies. This amount is included in Other current liabilities and Other long-term liabilities. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Leasing Assets and Liabilities [Table Text Block] | The table below summarizes the operating leases included in the Condensed Consolidated Balance Sheets. Balance Sheet Location September 30, 2020 December 31, 2019 (In millions) Operating lease asset Other Assets $ 27 $ 37 Total right-of-use assets $ 27 $ 37 Operating lease liabilities Other Current Liabilities $ 5 $ 9 Operating lease liabilities Other Liabilities 25 31 Total lease liabilities $ 30 $ 40 |
Summary of Lease Expense | The following table presents the Partnership’s rental costs associated with field equipment and buildings. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Rental Costs: Field equipment $ 3 $ 6 $ 12 $ 18 Office space 1 1 3 5 The following table presents the Partnership’s lease cost. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Lease Cost: Operating lease cost $ 2 $ 2 $ 5 $ 7 Short-term lease cost 2 4 9 15 Variable lease cost — 1 1 1 Total Lease Cost $ 4 $ 7 $ 15 $ 23 |
Schedule of Operating Lease Obligations Expiration | Undiscounted cash flows for non-cancellable operating lease liabilities are as follows: Non-cancellable operating leases (In millions) Year Ended December 31, 2020 - remainder $ 2 2021 6 2022 5 2023 5 2024 4 2025 3 After 2025 8 Total 33 Impact of the applicable discount rate (3) Total lease liabilities $ 30 |
Earnings Per Limited Partner _2
Earnings Per Limited Partner Unit (Tables) | 9 Months Ended | |
Sep. 30, 2020 | ||
Earnings Per Share [Abstract] | ||
Schedule Of Earnings Per Unit For Common Units | The following table illustrates the Partnership’s calculation of earnings per unit for common units. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions, except per unit data) Net income (loss) $ (163) $ 133 $ (14) $ 380 Net income (loss) attributable to noncontrolling interest 1 1 (6) 2 Series A Preferred Unit distributions 9 9 27 27 General partner interest in net income — — — — Net income (loss) available to common units $ (173) $ 123 $ (35) $ 351 Net income (loss) allocable to common units $ (173) $ 123 $ (35) $ 351 Dilutive effect of Series A Preferred Unit distributions (2) — — — — Diluted net income (loss) allocable to common units $ (173) $ 123 $ (35) $ 351 Basic weighted average number of common units outstanding (1) 437 437 437 436 Dilutive effect of Series A Preferred Units (2) — — — — Dilutive effect of performance units (3) — — — — Diluted weighted average number of common units outstanding 437 437 437 436 Basic earnings (loss) per unit Common units $ (0.40) $ 0.28 $ (0.08) $ 0.81 Diluted earnings (loss) per unit Common units $ (0.40) $ 0.28 $ (0.08) $ 0.81 ____________________ (1) Basic weighted average number of outstanding common units includes approximately two million time-based phantom units for both the three months ended September 30, 2020 and 2019, and two million and one million time-based phantom units for the nine months ended September 30, 2020 and 2019, respectively. (2) For the three and nine months ended September 30, 2020 and 2019, the issuance of “if-converted” common units attributable to the Series A Preferred Units were excluded in the calculation of diluted earnings (loss) per unit as the impact was anti-dilutive. (3) The contingent effect of performance unit awards is anti-dilutive for the three and nine months ended September 30, 2020. The dilutive effect of the performance unit awards was less than $0.01 per unit during the three and nine months ended September 30, 2019. | [1] |
[1] | Basic weighted average number of outstanding common units includes approximately two million time-based phantom units for both the three months ended September 30, 2020 and 2019, and two million and one million time-based phantom units for the nine months ended September 30, 2020 and 2019, respectively. (2) For the three and nine months ended September 30, 2020 and 2019, the issuance of “if-converted” common units attributable to the Series A Preferred Units were excluded in the calculation of diluted earnings (loss) per unit as the impact was anti-dilutive. (3) The contingent effect of performance unit awards is anti-dilutive for the three and nine months ended September 30, 2020. The dilutive effect of the performance unit awards was less than $0.01 per unit during the three and nine months ended September 30, 2019. |
Partners' Equity (Tables)
Partners' Equity (Tables) | 9 Months Ended | |
Sep. 30, 2020 | ||
Equity [Abstract] | ||
Schedule of Equity Transactions with Limited Partner | The Partnership paid or has authorized payment of the following cash distributions to common unitholders, as applicable, during 2020 and 2019 (in millions, except for per unit amounts): Three Months Ended Record Date Payment Date Per Unit Distribution Total Cash Distribution September 30, 2020 (1) November 17, 2020 November 24, 2020 $ 0.16525 $ 72 June 30, 2020 August 18, 2020 August 25, 2020 0.16525 72 March 31, 2020 May 19, 2020 May 27, 2020 0.16525 72 December 31, 2019 February 18, 2020 February 25, 2020 0.3305 144 September 30, 2019 November 19, 2019 November 26, 2019 0.3305 144 June 30, 2019 August 20, 2019 August 27, 2019 0.3305 144 March 31, 2019 May 21, 2019 May 29, 2019 0.318 138 _____________________ | |
Schedule of Cash Distributions to Series A Preferred Unitholders | The Partnership paid or has authorized payment of the following cash distributions to holders of the Series A Preferred Units during 2020 and 2019 (in millions, except for per unit amounts): Three Months Ended Record Date Payment Date Per Unit Distribution Total Cash Distribution September 30, 2020 (1) November 3, 2020 November 13, 2020 $ 0.625 $ 9 June 30, 2020 August 4, 2020 August 14, 2020 0.625 9 March 31, 2020 May 5, 2020 May 15, 2020 0.625 9 December 31, 2019 February 7, 2020 February 14, 2020 0.625 9 September 30, 2019 November 5, 2019 November 14, 2019 0.625 9 June 30, 2019 August 2, 2019 August 14, 2019 0.625 9 March 31, 2019 April 29, 2019 May 15, 2019 0.625 9 _____________________ (1) The Board of Directors declared a $0.625 per Series A Preferred Unit cash distribution on November 3, 2020, to be paid on November 13, 2020, to Series A Preferred unitholders of record at the close of business on November 3, 2020. | [1] |
[1] | The Board of Directors declared a $0.625 per Series A Preferred Unit cash distribution on November 3, 2020, to be paid on November 13, 2020, to Series A Preferred unitholders of record at the close of business on November 3, 2020. |
Impairment of Long-lived Asse_2
Impairment of Long-lived Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Impairment of Long-lived Assets and Goodwill [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table presents the change in carrying amount of goodwill in each of our reportable segments. Gathering and Processing Transportation and Storage Total (In millions) Balance as of December 31, 2019 $ 12 $ — $ 12 Goodwill impairment (12) — (12) Balance as of September 30, 2020 $ — $ — $ — |
Investment in Equity Method A_2
Investment in Equity Method Affiliate (Tables) | 9 Months Ended | |
Sep. 30, 2020 | ||
Equity Method Investments and Joint Ventures [Abstract] | ||
Schedule of Investments Detail | The following table presents the amount of Equity in earnings of equity method affiliate recognized, Impairment of equity method affiliate investment and Distributions from equity method affiliate received. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Equity in earnings of equity method affiliate $ 3 $ 5 $ 14 $ 12 Impairment of equity method affiliate investment (225) — (225) — Equity in earnings (losses) of equity method affiliate, net $ (222) $ 5 $ (211) $ 12 Distributions from equity method affiliate (1) $ 4 $ 4 $ 23 $ 20 ___________________ (1) Distributions from equity method affiliate includes a $14 million and $12 million return on investment and a $9 million and $8 million return of investment for the nine months ended September 30, 2020 and 2019, respectively. The following table includes the summarized financial information of SESH. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Income Statements: Revenues $ 24 $ 27 $ 79 $ 81 Operating income 11 15 40 37 Net income 6 10 27 24 | [1] |
[1] | Distributions from equity method affiliate includes a $14 million and $12 million return on investment and a $9 million and $8 million return of investment for the nine months ended September 30, 2020 and 2019, respectively. |
Debt (Tables)
Debt (Tables) | 9 Months Ended | |
Sep. 30, 2020 | ||
Debt Disclosure [Abstract] | ||
Schedule of Debt | The following table presents the Partnership’s outstanding debt. September 30, 2020 December 31, 2019 Outstanding Principal Discount (1) Total Debt Outstanding Principal Premium (Discount) (1) Total Debt (In millions) Commercial Paper $ 334 $ — $ 334 $ 155 $ — $ 155 Revolving Credit Facility — — — — — — 2019 Term Loan Agreement 800 — 800 800 — 800 2024 Notes 600 — 600 600 — 600 2027 Notes 700 (2) 698 700 (2) 698 2028 Notes 800 (5) 795 800 (5) 795 2029 Notes 547 (1) 546 550 (1) 549 2044 Notes 531 — 531 550 — 550 EOIT Senior Notes — — — 250 1 251 Total debt $ 4,312 $ (8) $ 4,304 $ 4,405 $ (7) $ 4,398 Less: Short-term debt (2) 334 155 Less: Current portion of long-term debt (3) — 251 Less: Unamortized debt expense (4) 20 23 Total long-term debt $ 3,950 $ 3,969 ____________________ (1) Unamortized premium (discount) on long-term debt is amortized over the life of the respective debt. (2) Short-term debt includes $334 million and $155 million of outstanding commercial paper as of September 30, 2020 and December 31, 2019, respectively. (3) As of December 31, 2019, Current portion of long-term debt included $251 million outstanding balance of the EOIT Senior Notes which were repaid in March 2020. | [1],[2],[3],[4] |
[1] | As of December 31, 2019, Current portion of long-term debt included $251 million outstanding balance of the EOIT Senior Notes which were repaid in March 2020. | |
[2] | As of September 30, 2020 and December 31, 2019, there was an additional $3 million and $4 million, respectively, of unamortized debt expense related to the Revolving Credit Facility included in Other assets, not included above. | |
[3] | Short-term debt includes $334 million and $155 million of outstanding commercial paper as of September 30, 2020 and December 31, 2019, respectively. | |
[4] | Unamortized premium (discount) on long-term debt is amortized over the life of the respective debt. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended | |
Sep. 30, 2020 | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Schedule of Derivative Instruments | The following table presents the Partnership’s derivative instruments that were not designated as hedging instruments for accounting purposes. September 30, 2020 December 31, 2019 Gross Notional Volume Purchases Sales Purchases Sales Natural gas— TBtu (1) Financial fixed futures/swaps 4 25 10 19 Financial basis futures/swaps 3 32 11 30 Financial swaptions (2) — 8 — 2 Physical purchases/sales — 1 — 6 Crude oil (for condensate)— MBbl (3) Financial futures/swaps — 540 — 990 Financial swaptions (2) — 90 — 225 Natural gas liquids— MBbl (4) Financial futures/swaps 1,395 1,410 2,490 2,415 Financial options — 75 — — ____________________ (1) As of September 30, 2020, 91.9% of the natural gas contracts had durations of one year or less and 8.1% had durations of more than one year and less than two years. As of December 31, 2019, 86.6% of the natural gas contracts had durations of one year or less and 13.4% had durations of more than one year and less than two years. (2) The notional volume contains a combined derivative instrument consisting of a fixed price swap and a sold option, which gives the counterparties the right, but not the obligation, to increase the notional volume hedged under the fixed price swap until the option expiration date. The notional volume represents the volume prior to option exercise. (3) As of September 30, 2020, 92.9% of the crude oil (for condensate) contracts had durations of one year or less and 7.1% had durations of more than one year and less than two years. As of December 31, 2019, 72.8% of the crude oil (for condensate) contracts had durations of one year or less and 27.2% had durations of more than one year and less than two years. (4) As of September 30, 2020, 97.3% of the natural gas liquids contracts had durations of one year or less and 2.7% had durations of more than one year and less than two years. As of December 31, 2019, 72.2% of the natural gas liquids contracts had durations of one year or less and 27.8% had durations of more than one year and less than two years. The following table presents the Partnership’s derivative instruments that were designated as hedging instruments for accounting purposes. September 30, 2020 December 31, 2019 Gross Notional Value (In millions) Interest rate swaps $ 300 $ 300 | [1],[2],[3],[4] |
Schedule of Derivative Assets at Fair Value | The following table presents the fair value of the derivative instruments that are included in the Partnership’s Condensed Consolidated Balance Sheets that were not designated as hedging instruments for accounting purposes. September 30, 2020 December 31, 2019 Fair Value Instrument Balance Sheet Location Assets Liabilities Assets Liabilities (In millions) Natural gas Financial futures/swaps Other Current $ 1 $ 7 $ 7 $ 5 Financial swaptions Other Current — 4 — — Physical purchases/sales Other Current — 2 5 — Financial futures/swaps Other — — — 1 Crude oil (for condensate) Financial futures/swaps Other Current 1 13 1 19 Financial swaptions Other Current 2 — — — Financial futures/swaps Other — 1 — 8 Natural gas liquids Financial futures/swaps Other Current 17 1 25 3 Financial futures/swaps Other 1 — 11 2 Total gross commodity derivatives (1) $ 22 $ 28 $ 49 $ 38 _____________________ (1) See Note 11 for a reconciliation of the Partnership’s commodity derivatives fair value to the Partnership’s Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019. The following table presents the fair value of the derivative instruments that are included in the Partnership’s Condensed Consolidated Balance Sheets that were designated as hedging instruments for accounting purposes. September 30, 2020 December 31, 2019 Fair Value Instrument Balance Sheet Location Assets Liabilities Assets Liabilities (In millions) Interest rate swaps Other Current $ — $ 5 $ — $ 1 Interest rate swaps Other — 2 — 2 Total gross interest rate derivatives (1) $ — $ 7 $ — $ 3 _____________________ (1) All interest rate derivative instruments that were designated as cash flow hedges are considered Level 2 as of September 30, 2020 and December 31, 2019. | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the effect of derivative instruments on the Partnership’s Condensed Consolidated Statements of Income. Amounts Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Natural gas Financial futures/swaps gains (losses) $ (5) $ 2 $ (2) $ 10 Financial swaptions gains (losses) (4) — (6) — Physical purchases/sales gains (losses) (1) 1 — 1 Crude oil (for condensate) Financial futures/swaps gains (losses) — (8) 12 (29) Financial swaptions gains (losses) — — 2 — Natural gas liquids Financial futures/swaps gains (losses) — 13 (1) 32 Total $ (10) $ 8 $ 5 $ 14 The following table presents the effect of derivative instruments that were designated as hedging instruments on the Partnership’s Condensed Consolidated Statements of Income. Amounts Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Interest rate swaps losses $ (2) $ — $ (3) $ — Total $ (2) $ — $ (3) $ — | |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the components of gain (loss) on derivative activity in the Partnership’s Condensed Consolidated Statements of Income. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Change in fair value of commodity derivatives $ (15) $ (2) $ (17) $ (3) Realized gain on commodity derivatives 5 10 22 17 Gain (loss) on commodity derivative activity $ (10) $ 8 $ 5 $ 14 | |
[1] | As of September 30, 2020, 91.9% of the natural gas contracts had durations of one year or less and 8.1% had durations of more than one year and less than two years. As of December 31, 2019, 86.6% of the natural gas contracts had durations of one year or less and 13.4% had durations of more than one year and less than two years. | |
[2] | As of September 30, 2020, 92.9% of the crude oil (for condensate) contracts had durations of one year or less and 7.1% had durations of more than one year and less than two years. As of December 31, 2019, 72.8% of the crude oil (for condensate) contracts had durations of one year or less and 27.2% had durations of more than one year and less than two years. | |
[3] | As of September 30, 2020, 97.3% of the natural gas liquids contracts had durations of one year or less and 2.7% had durations of more than one year and less than two years. As of December 31, 2019, 72.2% of the natural gas liquids contracts had durations of one year or less and 27.8% had durations of more than one year and less than two years. | |
[4] | The notional volume contains a combined derivative instrument consisting of a fixed price swap and a sold option, which gives the counterparties the right, but not the obligation, to increase the notional volume hedged under the fixed price swap until the option expiration date. The notional volume represents the volume prior to option exercise. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended | |
Sep. 30, 2020 | ||
Fair Value Disclosures [Abstract] | ||
Schedule of Fair Value and Carrying Amount of Financial Instruments | The following table summarizes the fair value and carrying amount of the Partnership’s financial instruments. September 30, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Debt Revolving Credit Facility (Level 2) (1) $ — $ — $ — $ — 2019 Term Loan Agreement (Level 2) 800 800 800 800 2024 Notes (Level 2) 600 591 600 614 2027 Notes (Level 2) 698 674 698 698 2028 Notes (Level 2) 795 784 795 811 2029 Notes (Level 2) 546 505 549 526 2044 Notes (Level 2) 531 448 550 506 EOIT Senior Notes (Level 2) — — 251 252 ____________________ (1) Borrowing capacity is effectively reduced by our borrowings outstanding under the commercial paper program. $334 million and $155 million of commercial paper was outstanding as of September 30, 2020 and December 31, 2019, respectively. | [1] |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables summarize the Partnership’s other assets and liabilities that are measured at fair value on a recurring basis. September 30, 2020 Commodity Contracts Gas Imbalances (1) Assets Liabilities Assets (2) Liabilities (3) (In millions) Quoted market prices in active market for identical assets (Level 1) $ 1 $ 22 $ — $ — Significant other observable inputs (Level 2) 21 6 16 11 Total fair value 22 28 16 11 Netting adjustments (22) (22) — — Total $ — $ 6 $ 16 $ 11 December 31, 2019 Commodity Contracts Gas Imbalances (1) Assets Liabilities Assets (2) Liabilities (3) (In millions) Quoted market prices in active market for identical assets (Level 1) $ 5 $ 31 $ — $ — Significant other observable inputs (Level 2) 44 7 14 11 Total fair value 49 38 14 11 Netting adjustments (37) (37) — — Total $ 12 $ 1 $ 14 $ 11 ______________________ (1) The Partnership uses the market approach to fair value its gas imbalance assets and liabilities at individual, or where appropriate an average of, current market indices applicable to the Partnership’s operations, not to exceed net realizable value. There were no netting adjustments as of September 30, 2020 and December 31, 2019. (2) Gas imbalance assets exclude fuel reserves for under retained fuel due from shippers of $22 million and $21 million at September 30, 2020 and December 31, 2019, respectively, which fuel reserves are based on the value of natural gas at the time the imbalance was created, and which are not subject to revaluation at fair market value. (3) Gas imbalance liabilities exclude fuel reserves for over retained fuel due to shippers of $3 million and $8 million at September 30, 2020 and December 31, 2019, respectively, which fuel reserves are based on the value of natural gas at the time the imbalance was created, and which are not subject to revaluation at fair market value. | [2],[3],[4] |
[1] | Borrowing capacity is effectively reduced by our borrowings outstanding under the commercial paper program. $334 million and $155 million of commercial paper was outstanding as of September 30, 2020 and December 31, 2019, respectively. | |
[2] | Gas imbalance assets exclude fuel reserves for under retained fuel due from shippers of $22 million and $21 million at September 30, 2020 and December 31, 2019, respectively, which fuel reserves are based on the value of natural gas at the time the imbalance was created, and which are not subject to revaluation at fair market value. | |
[3] | Gas imbalance liabilities exclude fuel reserves for over retained fuel due to shippers of $3 million and $8 million at September 30, 2020 and December 31, 2019, respectively, which fuel reserves are based on the value of natural gas at the time the imbalance was created, and which are not subject to revaluation at fair market value. | |
[4] | The Partnership uses the market approach to fair value its gas imbalance assets and liabilities at individual, or where appropriate an average of, current market indices applicable to the Partnership’s operations, not to exceed net realizable value. There were no netting adjustments as of September 30, 2020 and December 31, 2019. |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides information regarding supplemental cash flow information: Nine Months Ended September 30, 2020 2019 (In millions) Supplemental Disclosure of Cash Flow Information: Cash Payments: Interest, net of capitalized interest $ 129 $ 131 Income taxes, net of refunds 1 1 Non-cash transactions: Accounts payable related to capital expenditures 9 26 Lease liabilities related to (derecognition) recognition of right-of-use assets (5) 42 Impact of adoption of financial instruments-credit losses accounting standard (Note 1) (3) — |
Schedule of Restricted Cash and Cash Equivalents | The following table reconciles cash and cash equivalents and restricted cash on the Condensed Consolidated Balance Sheets to cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows: September 30, 2020 2019 (In millions) Cash and cash equivalents $ 18 $ 12 Restricted cash — 1 Cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 18 $ 13 |
Schedule of Cash and Cash Equivalents | The following table reconciles cash and cash equivalents and restricted cash on the Condensed Consolidated Balance Sheets to cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows: September 30, 2020 2019 (In millions) Cash and cash equivalents $ 18 $ 12 Restricted cash — 1 Cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 18 $ 13 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Revenues from Related Parties | The following table presents the amounts of revenues from affiliated companies included in the Partnership’s Condensed Consolidated Statements of Income. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Gas transportation and storage service revenues — CenterPoint Energy $ 17 $ 22 $ 76 $ 78 Natural gas product sales — CenterPoint Energy — 3 1 7 Gas transportation and storage service revenues — OGE Energy 9 9 28 35 Natural gas product sales — OGE Energy 4 4 9 5 Total revenues — affiliated companies $ 30 $ 38 $ 114 $ 125 |
Schedule of Natural Gas Purchased From Related Parties | The following table presents the amounts of natural gas purchased from affiliated companies included in the Partnership’s Condensed Consolidated Statements of Income. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Cost of natural gas purchases — CenterPoint Energy $ — $ — $ 1 $ — Cost of natural gas purchases — OGE Energy 6 12 20 25 Total cost of natural gas purchases — affiliated companies $ 6 $ 12 $ 21 $ 25 |
Schedule of Amounts Charged to Partnership by Related Parties | The following table presents the amounts charged to the Partnership by affiliates for seconded employees, included primarily in Operation and maintenance and General and administrative expenses in the Partnership’s Condensed Consolidated Statements of Income. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Seconded Employee Costs — OGE Energy $ 5 $ 4 $ 13 $ 15 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended | |
Sep. 30, 2020 | ||
Share-based Payment Arrangement [Abstract] | ||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table summarizes the Partnership’s equity-based compensation expense related to performance units and phantom units for the Partnership’s employees and independent directors. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In millions) Performance units $ 1 $ 3 $ 5 $ 8 Phantom units 2 1 5 5 Total compensation expense $ 3 $ 4 $ 10 $ 13 The following table presents the assumptions related to the performance share units granted in 2020. 2020 Number of units granted 933,738 Fair value of units granted $ 7.00 Expected distribution yield 12.27 % Expected price volatility 27.70 % Risk-free interest rate 0.85 % Expected life of units (in years) 3 The following table presents the number of phantom units granted and the grant date fair value related to the phantom units granted in 2020. 2020 Phantom Units granted 967,095 Fair value of phantom units granted $2.67 - $10.13 | |
Schedule of Share-based Compensation, Activity | A summary of the activity for the Partnership’s performance units and phantom units applicable to the Partnership’s employees at September 30, 2020 and changes during 2020 are shown in the following table. Performance Units Phantom Units Number Weighted Average Grant-Date Fair Value, Per Unit Number Weighted Average Grant-Date Fair Value, Per Unit (In millions, except unit data) Units outstanding at December 31, 2019 1,393,329 $ 19.04 1,392,560 $ 14.65 Granted (1) 933,738 7.00 967,095 6.51 Vested (2) (387,174) 19.23 (378,192) 15.99 Forfeited (154,534) 14.39 (189,397) 10.47 Units outstanding at September 30, 2020 1,785,359 $ 13.11 1,792,066 $ 10.42 Aggregate intrinsic value of units outstanding at September 30, 2020 $ 7 $ 7 _____________________ (1) Performance units represents the target number of performance units granted. The actual number of performance units earned, if any, is dependent upon performance and may range from 0% to 200% of the target. (2) Performance units vested as of September 30, 2020 include 376,292 units from the 2017 annual grant, which were approved by the Board of Directors in 2017 and, based on the level of achievement of a performance goal established by the Board of Directors over the performance period of January 1, 2017 through December 31, 2019, no performance units vested. | [1],[2] |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | summarizes the Partnership’s unrecognized compensation cost for its non-vested performance units and phantom units, and the weighted-average periods over which the compensation cost is expected to be recognized. September 30, 2020 Unrecognized Compensation Cost Weighted Average Period for Recognition Performance Units $ 11 1.68 Phantom Units 8 1.53 Total $ 19 | |
[1] | Performance units represents the target number of performance units granted. The actual number of performance units earned, if any, is dependent upon performance and may range from 0% to 200% of the target. | |
[2] | Performance units vested as of September 30, 2020 include 376,292 units from the 2017 annual grant, which were approved by the Board of Directors in 2017 and, based on the level of achievement of a performance goal established by the Board of Directors over the performance period of January 1, 2017 through December 31, 2019, no performance units vested. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended | |
Sep. 30, 2020 | ||
Segment Reporting [Abstract] | ||
Schedule of Financial Data for Business Segments and Services | Financial data for reportable segments are as follows: Three Months Ended September 30, 2020 Gathering and Transportation (1) and Storage Eliminations Total (In millions) Product sales $ 271 $ 79 $ (70) $ 280 Service revenues 192 126 (2) 316 Total Revenues 463 205 (72) 596 Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) 244 78 (72) 250 Operation and maintenance, General and administrative 77 47 — 124 Depreciation and amortization 75 30 — 105 Taxes other than income tax 10 7 — 17 Operating income $ 57 $ 43 $ — $ 100 Total Assets $ 9,525 $ 5,524 $ (3,274) $ 11,775 Capital expenditures $ 21 $ 29 $ — $ 50 Three Months Ended September 30, 2019 Gathering and Transportation (1) and Storage Eliminations Total (In millions) Product sales $ 294 $ 100 $ (74) $ 320 Service revenues 248 134 (3) 379 Total Revenues 542 234 (77) 699 Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) 238 102 (77) 263 Operation and maintenance, General and administrative 79 57 — 136 Depreciation and amortization 77 31 — 108 Taxes other than income tax 10 7 — 17 Operating income $ 138 $ 37 $ — $ 175 Total assets as of December 31, 2019 $ 9,739 $ 5,886 $ (3,359) $ 12,266 Capital expenditures $ 70 $ 31 $ — $ 101 Nine Months Ended September 30, 2020 Gathering and Transportation (1) and Storage Eliminations Total (In millions) Product sales $ 739 $ 213 $ (188) $ 764 Service revenues 592 409 (6) 995 Total Revenues 1,331 622 (194) 1,759 Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) 631 215 (193) 653 Operation and maintenance, General and administrative 250 137 (1) 386 Depreciation and amortization 223 91 — 314 Impairments of property, plant and equipment and goodwill 28 — — 28 Taxes other than income tax 32 20 — 52 Operating income $ 167 $ 159 $ — $ 326 Total Assets $ 9,525 $ 5,524 $ (3,274) $ 11,775 Capital expenditures $ 79 $ 73 $ — $ 152 Nine Months Ended September 30, 2019 Gathering and Transportation (1) and Storage Eliminations Total (In millions) Product sales $ 1,096 $ 381 $ (321) $ 1,156 Service revenues 663 421 (11) 1,073 Total Revenues 1,759 802 (332) 2,229 Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) 895 394 (331) 958 Operation and maintenance, General and administrative 238 152 (1) 389 Depreciation and amortization 229 94 — 323 Taxes other than income tax 31 21 — 52 Operating income $ 366 $ 141 $ — $ 507 Total assets as of December 31, 2019 $ 9,739 $ 5,886 $ (3,359) $ 12,266 Capital expenditures $ 267 $ 86 $ — $ 353 _____________________ (1) See Note 8 for discussion regarding ownership interests in SESH and related equity earnings included in the transportation and storage segment for the three and nine months ended September 30, 2020 and 2019. | [1] |
[1] | See Note 8 for discussion regarding ownership interests in SESH and related equity earnings included in the transportation and storage segment for the three and nine months ended September 30, 2020 and 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | Apr. 08, 2020USD ($) | Apr. 01, 2020USD ($) | Sep. 30, 2020USD ($)board_membershares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)board_membersegmentshares | Sep. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Significant Accounting Policies [Line Items] | |||||||||||||
Number of reportable segments | segment | 2 | ||||||||||||
Number of representatives designated by each of CenterPoint Energy and OGE Energy | board_member | 2 | 2 | |||||||||||
Number of independent board members | board_member | 3 | 3 | |||||||||||
Percentage vote by all unitholders (at least 75%) | 75.00% | ||||||||||||
Sale of interest | $ 19 | ||||||||||||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | $ 7,076 | $ 7,540 | $ 7,076 | $ 7,540 | $ 7,317 | $ 7,352 | $ 7,409 | $ 7,559 | $ 7,583 | $ 7,618 | |||
Accounts receivable | 2 | 2 | $ 2 | ||||||||||
Other assets | 3 | 3 | 3 | ||||||||||
Total Allowance for doubtful accounts | 5 | 5 | $ 5 | ||||||||||
Inventory adjustments | $ 2 | 0 | $ 9 | 6 | |||||||||
Gathering and Processing | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Loss on retirement | $ 20 | ||||||||||||
Partners' Capital | OGE Energy | Common Unit [Member] | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Units outstanding | shares | 110,982,805 | 110,982,805 | |||||||||||
Partners' Capital | CenterPoint | Series A 10% Fixed to Floating Non Cumulative Redeemable Perpetual Preferred Units | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Series A preferred units held by CenterPoint Energy | shares | 14,520,000 | 14,520,000 | |||||||||||
Partners' Capital | CenterPoint | Common Unit [Member] | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Units outstanding | shares | 233,856,623 | 233,856,623 | |||||||||||
Atoka | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Ownership interest (as a percentage) | 50.00% | ||||||||||||
Atoka | Gathering and Processing | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Loss on retirement | $ 16 | ||||||||||||
ESCP | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Ownership interest (as a percentage) | 60.00% | ||||||||||||
OGE Energy | Partners' Capital | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Limited partner ownership interest percentage | 25.50% | ||||||||||||
CenterPoint | Partners' Capital | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Limited partner ownership interest percentage | 53.70% | ||||||||||||
Partners' Capital | Common Unit [Member] | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | $ 6,695 | $ 7,145 | $ 6,695 | $ 7,145 | $ 6,937 | $ 6,972 | 7,013 | $ 7,163 | $ 7,183 | $ 7,218 | |||
Partners' Capital | OGE Energy | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Percentage share of management rights | 50.00% | 50.00% | |||||||||||
Percentage share of incentive distribution rights | 60.00% | 60.00% | |||||||||||
Partners' Capital | CenterPoint | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Percentage share of management rights | 50.00% | 50.00% | |||||||||||
Percentage share of incentive distribution rights | 40.00% | 40.00% | |||||||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | (3) | ||||||||||||
Cumulative Effect, Period of Adoption, Adjustment | Partners' Capital | Common Unit [Member] | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | $ (3) |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | $ 290 | $ 312 | $ 759 | $ 1,142 |
Gain (loss) on derivative activity | (10) | 8 | 5 | 14 |
Total Revenues | 596 | 699 | 1,759 | 2,229 |
Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 67 | 95 | 187 | 351 |
Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 208 | 191 | 523 | 698 |
Condensate Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 15 | 26 | 49 | 93 |
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 280 | 320 | 764 | 1,156 |
Demand Service Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 148 | 216 | 476 | 598 |
Volume Dependant Service Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 168 | 163 | 519 | 475 |
Natural Gas, Gathering, Transportation, Marketing and Processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 316 | 379 | 995 | 1,073 |
Operating Segments | Gathering and Processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 281 | 286 | 733 | 1,082 |
Gain (loss) on derivative activity | (10) | 8 | 6 | 14 |
Total Revenues | 463 | 542 | 1,331 | 1,759 |
Operating Segments | Gathering and Processing | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 58 | 69 | 161 | 291 |
Operating Segments | Gathering and Processing | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 208 | 191 | 523 | 698 |
Operating Segments | Gathering and Processing | Condensate Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 15 | 26 | 49 | 93 |
Operating Segments | Gathering and Processing | Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 271 | 294 | 739 | 1,096 |
Operating Segments | Gathering and Processing | Demand Service Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 32 | 97 | 105 | 225 |
Operating Segments | Gathering and Processing | Volume Dependant Service Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 160 | 151 | 487 | 438 |
Operating Segments | Gathering and Processing | Natural Gas, Gathering, Transportation, Marketing and Processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 192 | 248 | 592 | 663 |
Operating Segments | Transportation and Storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 79 | 100 | 214 | 381 |
Gain (loss) on derivative activity | 0 | 0 | (1) | 0 |
Total Revenues | 205 | 234 | 622 | 802 |
Operating Segments | Transportation and Storage | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 77 | 95 | 207 | 365 |
Operating Segments | Transportation and Storage | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 2 | 5 | 7 | 16 |
Operating Segments | Transportation and Storage | Condensate Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 0 | 0 | 0 | 0 |
Operating Segments | Transportation and Storage | Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 79 | 100 | 213 | 381 |
Operating Segments | Transportation and Storage | Demand Service Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 116 | 119 | 371 | 373 |
Operating Segments | Transportation and Storage | Volume Dependant Service Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 10 | 15 | 38 | 48 |
Operating Segments | Transportation and Storage | Natural Gas, Gathering, Transportation, Marketing and Processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 126 | 134 | 409 | 421 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | (70) | (74) | (188) | (321) |
Gain (loss) on derivative activity | 0 | 0 | 0 | 0 |
Total Revenues | (72) | (77) | (194) | (332) |
Eliminations | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | (68) | (69) | (181) | (305) |
Eliminations | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | (2) | (5) | (7) | (16) |
Eliminations | Condensate Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from natural gas, natural gas liquids, and condensate | 0 | 0 | 0 | 0 |
Eliminations | Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | (70) | (74) | (188) | (321) |
Eliminations | Demand Service Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 0 | 0 | 0 | 0 |
Eliminations | Volume Dependant Service Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | (2) | (3) | (6) | (11) |
Eliminations | Natural Gas, Gathering, Transportation, Marketing and Processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ (2) | $ (3) | $ (6) | $ (11) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized related to rate case settlement | $ 17 | |
Regulatory Liabilities, Refund to Customers | $ 21 |
Revenue - Accounts Receivable (
Revenue - Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Customers | $ 233 | $ 239 | |
Contract assets | [1] | 3 | 18 |
Non-customers | 5 | 12 | |
Total Accounts Receivable | [2] | 241 | 269 |
Firm Service Transportation [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Contract assets | $ 9 | $ 6 | |
[1] | Contract assets reflected in Total Accounts Receivable include accrued minimum volume commitments. Contract assets are primarily attributable to revenues associated with estimated shortfall volumes on certain annual minimum volume commitment arrangements. Total Accounts Receivable does not include contract assets related to firm service transportation contracts with tiered rates of $9 million as of September 30, 2020 and $6 million as of December 31, 2019, which are reflected in Other Assets. | ||
[2] | Total Accounts Receivable includes Accounts receivable, net of allowance for doubtful accounts and Accounts receivable—affiliated companies. |
Revenue - Summary of Changes in
Revenue - Summary of Changes in Contract Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | ||
Revenue from Contract with Customer [Abstract] | |||
Deferred revenues (1) | [1] | $ 44 | $ 48 |
Amounts recognized in revenues | [1] | $ 23 | |
[1] | Deferred revenues includes deferred revenue — affiliated companies. This amount is included in Other current liabilities and Other long-term liabilities. |
Revenue - Summary of Recognitio
Revenue - Summary of Recognition Contract Liabilities (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($) | [1] | |
Revenue from Contract with Customer [Abstract] | ||
2020 | $ 17 | |
2021 | 7 | |
2022 | 6 | |
2023 | 6 | |
2024 and After | $ 8 | |
[1] | Deferred revenues includes deferred revenue — affiliated companies. This amount is included in Other current liabilities and Other long-term liabilities. |
Revenue - Summary of Recognit_2
Revenue - Summary of Recognition of Remaining Performance Obligations (Details) $ in Millions | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Total remaining performance obligations | $ 150 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Transportation and Storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Total remaining performance obligations | $ 119 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Gathering and Processing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Total remaining performance obligations | $ 31 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Total remaining performance obligations | $ 540 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Transportation and Storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Total remaining performance obligations | $ 419 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Gathering and Processing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Total remaining performance obligations | $ 121 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Total remaining performance obligations | $ 473 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Transportation and Storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Total remaining performance obligations | $ 350 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Gathering and Processing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Total remaining performance obligations | $ 123 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Total remaining performance obligations | $ 447 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Transportation and Storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Total remaining performance obligations | $ 326 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Gathering and Processing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Total remaining performance obligations | $ 121 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 23 years 5 months |
Total remaining performance obligations | $ 1,500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Transportation and Storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 23 years 5 months |
Total remaining performance obligations | $ 1,187 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Gathering and Processing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 5 years 2 months |
Total remaining performance obligations | $ 313 |
Leases - Schedule of Leasing As
Leases - Schedule of Leasing Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating lease asset | $ 27 | $ 37 |
Operating Lease, Liability | 30 | 40 |
Other Current Liabilities | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Current | 5 | 9 |
Other Liabilities | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Noncurrent | 25 | 31 |
Other Assets [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease asset | $ 27 | $ 37 |
Leases - Summary of Lease Expen
Leases - Summary of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Rental costs | $ 4 | $ 7 | $ 15 | $ 23 |
Weighted average lease term (in years) | 7 years | 7 years | ||
Weighted average discount rate (as a percentage) | 5.47% | 5.47% | ||
Operating lease cost | $ 2 | 2 | $ 5 | 7 |
Short-term lease cost | 2 | 4 | 9 | 15 |
Variable Lease, Cost | 0 | 1 | 1 | 1 |
Total Lease Cost | 4 | 7 | 15 | 23 |
Transportation and Storage | ||||
Lessee, Lease, Description [Line Items] | ||||
Short-term lease cost | 1 | |||
Field equipment | ||||
Lessee, Lease, Description [Line Items] | ||||
Rental costs | 3 | 6 | 12 | 18 |
Total Lease Cost | 3 | 6 | 12 | 18 |
Buildings | ||||
Lessee, Lease, Description [Line Items] | ||||
Rental costs | 1 | 1 | 3 | 5 |
Total Lease Cost | $ 1 | $ 1 | $ 3 | $ 5 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Obligations Expiration (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 2 | |
2021 | 6 | |
2022 | 5 | |
2023 | 5 | |
2024 | 4 | |
2025 | 3 | |
After 2025 | 8 | |
Total | 33 | |
Difference between undiscounted cash flows for operating leases | (3) | |
Operating Lease, Liability | $ 30 | $ 40 |
Earnings Per Limited Partner _3
Earnings Per Limited Partner Unit (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Net income (loss) | $ (163) | $ 133 | $ (14) | $ 380 | |||
Net income (loss) attributable to noncontrolling interest | 1 | 1 | (6) | 2 | |||
Series A Preferred Unit distributions | 9 | 9 | 27 | 27 | |||
General partner interest in net income | 0 | 0 | 0 | 0 | |||
Net Income (Loss) Attributable to Common Units (Note 5) | $ (173) | 123 | $ (35) | $ 351 | |||
Phantom units | |||||||
Basic weighted average number of outstanding | |||||||
Basic weighted average number of outstanding | 2,000,000 | 2,000,000 | 1,000,000 | ||||
Common Unit [Member] | |||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Net Income (Loss) Attributable to Common Units (Note 5) | $ (173) | 123 | $ (35) | $ 351 | |||
Dilutive effect of Series A Preferred Unit distributions (2) | 0 | 0 | 0 | 0 | |||
Diluted net income | $ (173) | $ 123 | $ (35) | $ 351 | |||
Basic earnings (loss) per unit | |||||||
Basic earnings (loss) per unit | $ (0.40) | $ 0.28 | $ (0.08) | $ 0.81 | |||
Basic weighted average number of outstanding | |||||||
Basic weighted average number of outstanding | 437 | 437 | [1] | 437 | [1] | 436 | [1] |
Dilutive effect of Series A Preferred Units (in units) | 0 | 0 | 0 | 0 | |||
Diluted weighted average number of outstanding units | 437 | 437 | 437 | 436 | |||
Diluted earnings per unit | $ (0.40) | $ 0.28 | $ (0.08) | $ 0.81 | |||
[1] | Basic weighted average number of outstanding common units includes approximately two million time-based phantom units for both the three months ended September 30, 2020 and 2019, and two million and one million time-based phantom units for the nine months ended September 30, 2020 and 2019, respectively. (2) For the three and nine months ended September 30, 2020 and 2019, the issuance of “if-converted” common units attributable to the Series A Preferred Units were excluded in the calculation of diluted earnings (loss) per unit as the impact was anti-dilutive. (3) The contingent effect of performance unit awards is anti-dilutive for the three and nine months ended September 30, 2020. The dilutive effect of the performance unit awards was less than $0.01 per unit during the three and nine months ended September 30, 2019. |
Partners' Equity - Schedule of
Partners' Equity - Schedule of Cash Distributions (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 24, 2020 | Nov. 17, 2020 | Nov. 13, 2020 | Nov. 03, 2020 | Aug. 25, 2020 | [1] | Aug. 18, 2020 | [1] | Aug. 14, 2020 | [2] | Aug. 04, 2020 | [2] | May 27, 2020 | May 19, 2020 | May 15, 2020 | May 05, 2020 | Feb. 25, 2020 | Feb. 18, 2020 | Feb. 14, 2020 | Feb. 07, 2020 | Nov. 26, 2019 | Nov. 19, 2019 | Nov. 14, 2019 | Nov. 05, 2019 | Aug. 27, 2019 | Aug. 20, 2019 | Aug. 14, 2019 | Aug. 02, 2019 | May 29, 2019 | May 21, 2019 | May 15, 2019 | Apr. 29, 2019 |
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||||||||||||||||||
Record Date | Aug. 18, 2020 | May 19, 2020 | Feb. 18, 2020 | Nov. 19, 2019 | Aug. 20, 2019 | May 21, 2019 | ||||||||||||||||||||||||||
Payment Date | Aug. 25, 2020 | May 27, 2020 | Feb. 25, 2020 | Nov. 26, 2019 | Aug. 27, 2019 | May 29, 2019 | ||||||||||||||||||||||||||
Series A 10% Fixed to Floating Non Cumulative Redeemable Perpetual Preferred Units | Preferred Units | ||||||||||||||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||||||||||||||||||
Record Date | Aug. 4, 2020 | May 5, 2020 | Feb. 7, 2020 | Nov. 5, 2019 | Aug. 2, 2019 | Apr. 29, 2019 | ||||||||||||||||||||||||||
Payment Date | Aug. 14, 2020 | May 15, 2020 | Feb. 14, 2020 | Nov. 14, 2019 | Aug. 14, 2019 | May 15, 2019 | ||||||||||||||||||||||||||
Cash Distribution | ||||||||||||||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||||||||||||||||||
Cash distribution declared (in dollars per unit) | $ 0.16525 | $ 0.16525 | $ 0.3305 | $ 0.3305 | $ 0.3305 | $ 0.318 | ||||||||||||||||||||||||||
Distribution made to unitholders | $ 72 | $ 72 | $ 144 | $ 144 | $ 144 | $ 138 | ||||||||||||||||||||||||||
Cash Distribution | Series A 10% Fixed to Floating Non Cumulative Redeemable Perpetual Preferred Units | Preferred Units | ||||||||||||||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||||||||||||||||||
Cash distribution declared (in dollars per unit) | $ 0.625 | $ 0.625 | $ 0.625 | $ 0.625 | $ 0.625 | $ 0.625 | ||||||||||||||||||||||||||
Distribution made to unitholders | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 | ||||||||||||||||||||||||||
Forecast | Subsequent Event | ||||||||||||||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||||||||||||||||||
Record Date | Nov. 17, 2020 | |||||||||||||||||||||||||||||||
Payment Date | Nov. 24, 2020 | |||||||||||||||||||||||||||||||
Forecast | Subsequent Event | Series A 10% Fixed to Floating Non Cumulative Redeemable Perpetual Preferred Units | Preferred Units | ||||||||||||||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||||||||||||||||||
Record Date | Nov. 3, 2020 | |||||||||||||||||||||||||||||||
Payment Date | Nov. 13, 2020 | |||||||||||||||||||||||||||||||
Forecast | Subsequent Event | Cash Distribution | ||||||||||||||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||||||||||||||||||
Cash distribution declared (in dollars per unit) | $ 0.16525 | |||||||||||||||||||||||||||||||
Distribution made to unitholders | $ 72 | |||||||||||||||||||||||||||||||
Cash distribution (in dollars per unit) | $ 0.16525 | |||||||||||||||||||||||||||||||
Forecast | Subsequent Event | Cash Distribution | Series A 10% Fixed to Floating Non Cumulative Redeemable Perpetual Preferred Units | Preferred Units | ||||||||||||||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||||||||||||||||||
Cash distribution declared (in dollars per unit) | $ 0.625 | |||||||||||||||||||||||||||||||
Distribution made to unitholders | $ 9 | |||||||||||||||||||||||||||||||
Cash distribution (in dollars per unit) | $ 0.625 | |||||||||||||||||||||||||||||||
[1] | The Board of Directors declared a $0.16525 per common unit cash distribution on November 3, 2020, to be paid on November 24, 2020 to common unitholders of record at the close of business on November 17, 2020. | |||||||||||||||||||||||||||||||
[2] | The Board of Directors declared a $0.625 per Series A Preferred Unit cash distribution on November 3, 2020, to be paid on November 13, 2020, to Series A Preferred unitholders of record at the close of business on November 3, 2020. |
Partners' Equity - Narrative (D
Partners' Equity - Narrative (Details) - USD ($) | May 12, 2017 | Sep. 30, 2020 |
Distribution Made to Limited Partner [Line Items] | ||
Limited partners' capital account, required quarterly distribution period | 60 days | |
At-the-market Program [Member] | ||
Distribution Made to Limited Partner [Line Items] | ||
Sale of Stock, Consideration Received Per Transaction | $ 200,000,000 |
Impairment of Long-Lived Asse_3
Impairment of Long-Lived Assets (Details) - USD ($) $ in Millions | Apr. 08, 2020 | Sep. 30, 2020 |
Gathering and Processing | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of long-lived assets | $ 20 | |
Atoka | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Ownership interest (as a percentage) | 50.00% | |
Atoka | Gathering and Processing | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of long-lived assets | $ 16 |
Impairment of Goodwill (Details
Impairment of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 31, 2017 | Sep. 30, 2020 | |
Goodwill [Roll Forward] | ||
Balance as of December 31, 2019 | $ 12 | |
Goodwill impairment | (12) | |
Balance as of June 30, 2020 | 0 | |
Gathering and Processing | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2019 | 12 | |
Goodwill acquired | $ 12 | |
Goodwill impairment | (12) | |
Balance as of June 30, 2020 | 0 | |
Transportation and Storage | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2019 | 0 | |
Goodwill impairment | 0 | |
Balance as of June 30, 2020 | $ 0 |
Investment in Equity Method A_3
Investment in Equity Method Affiliate - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Amount billed associated with service agreements | $ 596 | $ 699 | $ 1,759 | $ 2,229 |
SESH | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of distributions through limited partner interest | 50.00% | |||
SESH | Enbridge, Inc. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | 50.00% | ||
SESH | Enable Midstream Partners, LP [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | 50.00% | ||
SESH | Equity Method Investee | Shared Operations Service Agreements | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Amount billed associated with service agreements | $ 3 | $ 2 | $ 11 | $ 12 |
Investment in Equity Method A_4
Investment in Equity Method Affiliate - Schedule of Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Equity Method Affiliates Reported Amounts: | |||||
Equity in earnings (losses) of equity method affiliate, net | $ (222) | $ 5 | $ (211) | $ 12 | |
Return on investment in equity method affiliate | 14 | 12 | |||
Return of investment in equity method affiliate | 9 | 8 | |||
Operating income | 100 | 175 | 326 | 507 | |
Net income (loss) | (163) | 133 | (14) | 380 | |
SESH | |||||
Equity Method Affiliates Reported Amounts: | |||||
Equity in earnings of equity method affiliate | 3 | 5 | 14 | 12 | |
Impairment of equity method affiliate investment | (225) | 0 | (225) | 0 | |
Equity in earnings (losses) of equity method affiliate, net | (222) | 5 | (211) | 12 | |
Distributions from equity method affiliate (1) | [1] | 4 | 4 | 23 | 20 |
Return on investment in equity method affiliate | 14 | 12 | |||
Return of investment in equity method affiliate | 9 | 8 | |||
Revenues | 24 | 27 | 79 | 81 | |
Operating income | 11 | 15 | 40 | 37 | |
Net income (loss) | $ 6 | $ 10 | $ 27 | $ 24 | |
[1] | Distributions from equity method affiliate includes a $14 million and $12 million return on investment and a $9 million and $8 million return of investment for the nine months ended September 30, 2020 and 2019, respectively. |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Short-term debt | $ 334,000,000 | $ 155,000,000 | |
Outstanding Principal | 4,312,000,000 | 4,405,000,000 | |
Premium (Discount) | [1] | (8,000,000) | (7,000,000) |
Total Debt | 4,304,000,000 | 4,398,000,000 | |
Less: Unamortized debt expense | [2] | (20,000,000) | (23,000,000) |
Total long-term debt | 3,950,000,000 | 3,969,000,000 | |
2019 Term Loan Agreement | 2019 Term Loan Agreement | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 800,000,000 | 800,000,000 | |
Premium (Discount) | [1] | 0 | 0 |
Total Debt | 800,000,000 | 800,000,000 | |
Senior Notes | 2024 Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 600,000,000 | 600,000,000 | |
Premium (Discount) | [1] | 0 | 0 |
Total Debt | 600,000,000 | 600,000,000 | |
Senior Notes | 2027 Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 700,000,000 | 700,000,000 | |
Premium (Discount) | [1] | (2,000,000) | (2,000,000) |
Total Debt | 698,000,000 | 698,000,000 | |
Senior Notes | 2028 Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 800,000,000 | 800,000,000 | |
Premium (Discount) | [1] | (5,000,000) | (5,000,000) |
Total Debt | 795,000,000 | 795,000,000 | |
Senior Notes | 2029 Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 547,000,000 | 550,000,000 | |
Premium (Discount) | [1] | (1,000,000) | (1,000,000) |
Total Debt | 546,000,000 | 549,000,000 | |
Senior Notes | 2044 Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 531,000,000 | 550,000,000 | |
Premium (Discount) | [1] | 0 | 0 |
Total Debt | 531,000,000 | 550,000,000 | |
Senior Notes | EOIT Senior Notes | EOIT | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 0 | 250,000,000 | |
Premium (Discount) | [1] | 0 | 1,000,000 |
Total Debt | 0 | 251,000,000 | |
Senior Notes | Senior notes due in 2020 | |||
Debt Instrument [Line Items] | |||
Less: Current portion of long-term debt | [3] | 0 | 251,000,000 |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 0 | 0 | |
Premium (Discount) | [1] | 0 | 0 |
Total Debt | 0 | 0 | |
Unamortized debt expense related to Revolving Credit Facility | 3,000,000 | 3,000,000 | |
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Short-term debt | [4] | 334,000,000 | 155,000,000 |
Premium (Discount) | [1] | $ 0 | $ 0 |
[1] | Unamortized premium (discount) on long-term debt is amortized over the life of the respective debt. | ||
[2] | As of September 30, 2020 and December 31, 2019, there was an additional $3 million and $4 million, respectively, of unamortized debt expense related to the Revolving Credit Facility included in Other assets, not included above. | ||
[3] | As of December 31, 2019, Current portion of long-term debt included $251 million outstanding balance of the EOIT Senior Notes which were repaid in March 2020. | ||
[4] | Short-term debt includes $334 million and $155 million of outstanding commercial paper as of September 30, 2020 and December 31, 2019, respectively. |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jan. 29, 2019USD ($) | Apr. 06, 2018USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||
Commercial paper, authorized | $ 1,400,000,000 | |||||
Commercial paper outstanding | 334,000,000 | $ 155,000,000 | ||||
Debt Instrument, Repurchased Face Amount | 22,000,000 | |||||
Debt Instrument, Repurchase Amount | 17,000,000 | |||||
Gain on extinguishment of debt | $ 5,000,000 | $ 0 | ||||
2019 Term Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate percentage | 2.11% | |||||
Number of times option maybe exercised to extend term of Term Loan Facility | 2 | |||||
Debt Instrument, Term of Extension Period | 1 year | |||||
Debt Instrument, Principle Advance | $ 800,000,000 | |||||
LIBOR | 2019 Term Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | |||||
Senior Notes | Senior Notes including 2019 Notes, 2024 Notes, and 2044 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Unamortized Discount | $ 8,000,000 | |||||
Unamortized debt expense | $ 20,000,000 | |||||
Senior Notes | 2024 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate During Period | 4.01% | |||||
Senior Notes | 2027 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate During Period | 4.56% | |||||
Senior Notes | 2028 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate During Period | 5.19% | |||||
Senior Notes | 2029 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate During Period | 4.29% | |||||
Senior Notes | 2044 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate During Period | 4.99% | |||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Commercial paper outstanding | [1] | $ 334,000,000 | $ 155,000,000 | |||
Weighted average interest rate percentage | 0.77% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,750,000,000 | |||||
Duration of term loan facility (in years) | 5 years | |||||
Increase in maximum borrowing capacity | $ 875,000,000 | |||||
Number of times option maybe exercised to extend term of Term Loan Facility | 2 | |||||
Debt Instrument, Term of Extension Period | 1 year | |||||
Letters of credit principal advances | $ 0 | |||||
Letters of credit outstanding amount | $ 3,000,000 | |||||
Commitment fee percentage | 0.20% | |||||
Revolving Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin percentage | 1.50% | |||||
Minimum | Eurodollar | 2019 Term Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | |||||
Minimum | Base Rate | 2019 Term Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | |||||
Maximum | Eurodollar | 2019 Term Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | |||||
Maximum | Base Rate | 2019 Term Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | |||||
[1] | Short-term debt includes $334 million and $155 million of outstanding commercial paper as of September 30, 2020 and December 31, 2019, respectively. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities Quantitative Disclosures Related to Derivative Instruments (Details) - Not Designated as Hedging Instrument bbl in Thousands, MMBTU in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020MMBTUbbl | Dec. 31, 2019MMBTUbbl | ||
Natural Gas, Financial fixed futures/swaps | Purchases | |||
Derivative [Line Items] | |||
Derivative, gross notional volume (TBtu) | MMBTU | [1] | 4 | 10 |
Natural Gas, Financial fixed futures/swaps | Sales | |||
Derivative [Line Items] | |||
Derivative, gross notional volume (TBtu) | MMBTU | [1] | 25 | 19 |
Natural gas, Financial basis futures/swaps | Purchases | |||
Derivative [Line Items] | |||
Derivative, gross notional volume (TBtu) | MMBTU | [1] | 3 | 11 |
Natural gas, Financial basis futures/swaps | Sales | |||
Derivative [Line Items] | |||
Derivative, gross notional volume (TBtu) | MMBTU | [1] | 32 | 30 |
Natural gas, Financial swaptions | Purchases | |||
Derivative [Line Items] | |||
Derivative, gross notional volume (TBtu) | MMBTU | [1],[2] | 0 | 0 |
Natural gas, Financial swaptions | Sales | |||
Derivative [Line Items] | |||
Derivative, gross notional volume (TBtu) | MMBTU | [1],[2] | 8 | 2 |
Physical purchases/sales | Purchases | |||
Derivative [Line Items] | |||
Derivative, gross notional volume (TBtu) | MMBTU | [1] | 0 | 0 |
Physical purchases/sales | Sales | |||
Derivative [Line Items] | |||
Derivative, gross notional volume (TBtu) | MMBTU | [1] | 1 | 6 |
Crude oil, Financial Futures/swaps | Purchases | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount, Volume | bbl | [3] | 0 | 0 |
Crude oil, Financial Futures/swaps | Sales | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount, Volume | bbl | [3] | 540 | 990 |
Crude oil, Financial options | Purchases | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount, Volume | bbl | [2],[3] | 0 | 0 |
Crude oil, Financial options | Sales | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount, Volume | bbl | [2],[3] | 90 | 225 |
Natural gas liquids, Financial Futures/swaps | Purchases | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount, Volume | bbl | [4] | 1,395 | 2,490 |
Natural gas liquids, Financial Futures/swaps | Sales | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount, Volume | bbl | [4] | 1,410 | 2,415 |
Natural gas liquids, Options [Member] | Purchases | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount, Volume | bbl | [4] | 0 | 0 |
Natural gas liquids, Options [Member] | Sales | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount, Volume | bbl | [4] | 75 | 0 |
Natural gas | |||
Derivative [Line Items] | |||
Percent of contract with durations of one year or less | 91.90% | 86.60% | |
Percent of contracts with durations of more than one year and less than two years | 8.10% | 13.40% | |
Crude oil (for condensate) | |||
Derivative [Line Items] | |||
Percent of contract with durations of one year or less | 92.90% | 72.80% | |
Percent of contracts with durations of more than one year and less than two years | 7.10% | 27.20% | |
Natural gas liquids | |||
Derivative [Line Items] | |||
Percent of contract with durations of one year or less | 97.30% | 72.20% | |
Percent of contracts with durations of more than one year and less than two years | 2.70% | 27.80% | |
[1] | As of September 30, 2020, 91.9% of the natural gas contracts had durations of one year or less and 8.1% had durations of more than one year and less than two years. As of December 31, 2019, 86.6% of the natural gas contracts had durations of one year or less and 13.4% had durations of more than one year and less than two years. | ||
[2] | The notional volume contains a combined derivative instrument consisting of a fixed price swap and a sold option, which gives the counterparties the right, but not the obligation, to increase the notional volume hedged under the fixed price swap until the option expiration date. The notional volume represents the volume prior to option exercise. | ||
[3] | As of September 30, 2020, 92.9% of the crude oil (for condensate) contracts had durations of one year or less and 7.1% had durations of more than one year and less than two years. As of December 31, 2019, 72.8% of the crude oil (for condensate) contracts had durations of one year or less and 27.2% had durations of more than one year and less than two years. | ||
[4] | As of September 30, 2020, 97.3% of the natural gas liquids contracts had durations of one year or less and 2.7% had durations of more than one year and less than two years. As of December 31, 2019, 72.2% of the natural gas liquids contracts had durations of one year or less and 27.8% had durations of more than one year and less than two years. |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Derivative Instruments Designated as Hedging Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Gross Notional Value | $ 300 | $ 300 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Balance Sheet Location (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | [1] | $ 22 | $ 49 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | [1] | 28 | 38 |
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | [2] | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | [2] | 7 | 3 |
Interest rate swaps | Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Interest rate swaps | Designated as Hedging Instrument | Other Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 5 | 1 | |
Interest rate swaps | Designated as Hedging Instrument | Other Noncurrent Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Interest rate swaps | Designated as Hedging Instrument | Other Noncurrent Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 2 | 2 | |
Natural gas | Financial futures/swaps | Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 1 | 7 | |
Natural gas | Financial futures/swaps | Not Designated as Hedging Instrument | Other Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 7 | 5 | |
Natural gas | Financial futures/swaps | Not Designated as Hedging Instrument | Other Noncurrent Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Natural gas | Financial futures/swaps | Not Designated as Hedging Instrument | Other Noncurrent Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 1 | |
Natural gas | Financial swaptions | Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Natural gas | Financial swaptions | Not Designated as Hedging Instrument | Other Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 4 | 0 | |
Natural gas | Physical purchases/sales | Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 5 | |
Natural gas | Physical purchases/sales | Not Designated as Hedging Instrument | Other Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 2 | 0 | |
Crude oil (for condensate) | Financial futures/swaps | Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 1 | 1 | |
Crude oil (for condensate) | Financial futures/swaps | Not Designated as Hedging Instrument | Other Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 13 | 19 | |
Crude oil (for condensate) | Financial futures/swaps | Not Designated as Hedging Instrument | Other Noncurrent Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Crude oil (for condensate) | Financial futures/swaps | Not Designated as Hedging Instrument | Other Noncurrent Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 1 | 8 | |
Crude oil (for condensate) | Financial swaptions | Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 2 | 0 | |
Crude oil (for condensate) | Financial swaptions | Not Designated as Hedging Instrument | Other Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Natural gas liquids | Financial futures/swaps | Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 17 | 25 | |
Natural gas liquids | Financial futures/swaps | Not Designated as Hedging Instrument | Other Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 1 | 3 | |
Natural gas liquids | Financial futures/swaps | Not Designated as Hedging Instrument | Other Noncurrent Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 1 | 11 | |
Natural gas liquids | Financial futures/swaps | Not Designated as Hedging Instrument | Other Noncurrent Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 0 | $ 2 | |
[1] | See Note 11 for a reconciliation of the Partnership’s commodity derivatives fair value to the Partnership’s Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019. | ||
[2] | All interest rate derivative instruments that were designated as cash flow hedges are considered Level 2 as of September 30, 2020 and December 31, 2019. |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Amounts Recognized in Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on derivative, net | $ (10) | $ 8 | $ 5 | $ 14 |
Change in fair value of commodity derivatives | (15) | (2) | (17) | (3) |
Realized gain on commodity derivatives | 5 | 10 | 22 | 17 |
Gain (loss) on commodity derivative activity | (10) | 8 | 5 | 14 |
Cash collateral posted | 0 | 0 | ||
Cash collateral required if ratings are lowered | 3 | 3 | ||
Gain (Loss) on Hedging Activity | (2) | 0 | (3) | 0 |
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Hedging Activity | (2) | 0 | (3) | 0 |
Natural gas | Financial futures/swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on commodity derivative activity | (5) | 2 | (2) | 10 |
Natural gas | Financial swaptions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on commodity derivative activity | (4) | 0 | (6) | 0 |
Natural gas | Physical purchases/sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on commodity derivative activity | (1) | 1 | 0 | 1 |
Condensate | Financial futures/swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on commodity derivative activity | 0 | (8) | 12 | (29) |
Condensate | Financial swaptions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on commodity derivative activity | 0 | 0 | 2 | 0 |
Natural gas liquids | Financial futures/swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on commodity derivative activity | $ 0 | $ 13 | $ (1) | $ 32 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying and Fair Value Amounts (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | $ 334,000,000 | $ 155,000,000 | |
Carrying Amount | Significant other observable inputs (Level 2) | 2019 Term Loan Agreement | 2019 Term Loan Agreement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
2019 Term Loan Agreement (Level 2) | 800,000,000 | 800,000,000 | |
Carrying Amount | Significant other observable inputs (Level 2) | Senior Notes | 2024 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 600,000,000 | 600,000,000 | |
Carrying Amount | Significant other observable inputs (Level 2) | Senior Notes | 2027 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 698,000,000 | 698,000,000 | |
Carrying Amount | Significant other observable inputs (Level 2) | Senior Notes | 2028 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 795,000,000 | 795,000,000 | |
Carrying Amount | Significant other observable inputs (Level 2) | Senior Notes | 2029 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 546,000,000 | 549,000,000 | |
Carrying Amount | Significant other observable inputs (Level 2) | Senior Notes | 2044 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 531,000,000 | 550,000,000 | |
Carrying Amount | Significant other observable inputs (Level 2) | Senior Notes | EOIT Senior Notes | EOIT | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 0 | 251,000,000 | |
Carrying Amount | Significant other observable inputs (Level 2) | Revolving Credit Facility | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Revolving Credit Facility (Level 2) | [1] | 0 | 0 |
Fair Value | Significant other observable inputs (Level 2) | 2019 Term Loan Agreement | 2019 Term Loan Agreement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
2019 Term Loan Agreement (Level 2) | 800,000,000 | 800,000,000 | |
Fair Value | Significant other observable inputs (Level 2) | Senior Notes | 2024 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 591,000,000 | 614,000,000 | |
Fair Value | Significant other observable inputs (Level 2) | Senior Notes | 2027 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 674,000,000 | 698,000,000 | |
Fair Value | Significant other observable inputs (Level 2) | Senior Notes | 2028 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 784,000,000 | 811,000,000 | |
Fair Value | Significant other observable inputs (Level 2) | Senior Notes | 2029 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 505,000,000 | 526,000,000 | |
Fair Value | Significant other observable inputs (Level 2) | Senior Notes | 2044 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 448,000,000 | 506,000,000 | |
Fair Value | Significant other observable inputs (Level 2) | Senior Notes | EOIT Senior Notes | EOIT | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes (Level 2) | 0 | 252,000,000 | |
Fair Value | Significant other observable inputs (Level 2) | Revolving Credit Facility | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Revolving Credit Facility (Level 2) | [1] | 0 | 0 |
Commercial Paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [2] | $ 334,000,000 | $ 155,000,000 |
[1] | Borrowing capacity is effectively reduced by our borrowings outstanding under the commercial paper program. $334 million and $155 million of commercial paper was outstanding as of September 30, 2020 and December 31, 2019, respectively. | ||
[2] | Short-term debt includes $334 million and $155 million of outstanding commercial paper as of September 30, 2020 and December 31, 2019, respectively. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Retained fuel due from shippers | $ 22 | $ 21 | |
Over retained fuel due from shippers | 3 | 8 | |
Commodity Contracts | Recurring Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, total fair value | 22 | 49 | |
Liabilities, total fair value | 28 | 38 | |
Asset netting adjustments | (22) | (37) | |
Liability netting adjustments | (22) | (37) | |
Assets | 0 | 12 | |
Liabilities | 6 | 1 | |
Commodity Contracts | Recurring Measurement | Quoted market prices in active market for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 1 | 5 | |
Liabilities | 22 | 31 | |
Commodity Contracts | Recurring Measurement | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 21 | 44 | |
Liabilities | 6 | 7 | |
Gas Imbalances | Recurring Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, total fair value | [1],[2] | 16 | 14 |
Liabilities, total fair value | [2],[3] | 11 | 11 |
Asset netting adjustments | [1],[2] | 0 | 0 |
Liability netting adjustments | [2],[3] | 0 | 0 |
Assets | [1],[2] | 16 | 14 |
Liabilities | [2],[3] | 11 | 11 |
Gas Imbalances | Recurring Measurement | Quoted market prices in active market for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1],[2] | 0 | 0 |
Liabilities | [2],[3] | 0 | 0 |
Gas Imbalances | Recurring Measurement | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1],[2] | 16 | 14 |
Liabilities | [2],[3] | $ 11 | $ 11 |
[1] | Gas imbalance assets exclude fuel reserves for under retained fuel due from shippers of $22 million and $21 million at September 30, 2020 and December 31, 2019, respectively, which fuel reserves are based on the value of natural gas at the time the imbalance was created, and which are not subject to revaluation at fair market value. | ||
[2] | The Partnership uses the market approach to fair value its gas imbalance assets and liabilities at individual, or where appropriate an average of, current market indices applicable to the Partnership’s operations, not to exceed net realizable value. There were no netting adjustments as of September 30, 2020 and December 31, 2019. | ||
[3] | Gas imbalance liabilities exclude fuel reserves for over retained fuel due to shippers of $3 million and $8 million at September 30, 2020 and December 31, 2019, respectively, which fuel reserves are based on the value of natural gas at the time the imbalance was created, and which are not subject to revaluation at fair market value. |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information - Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |||||||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Interest, net of capitalized interest | $ 129 | $ 131 | ||||||
Income Taxes Paid, Net | 1 | 1 | ||||||
Accounts payable related to capital expenditures | 9 | 26 | ||||||
Lease liabilities related to (derecognition) recognition of right-of-use assets | (5) | |||||||
Lease liabilities related to (derecognition) recognition of right-of-use assets | 42 | |||||||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | 7,076 | 7,540 | $ 7,317 | $ 7,352 | $ 7,409 | $ 7,559 | $ 7,583 | $ 7,618 |
Common Unit [Member] | Partners' Capital | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | $ 6,695 | $ 7,145 | $ 6,937 | $ 6,972 | 7,013 | $ 7,163 | $ 7,183 | $ 7,218 |
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | (3) | |||||||
Cumulative Effect, Period of Adoption, Adjustment | Common Unit [Member] | Partners' Capital | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | $ (3) |
Supplemental Disclosure of Ca_4
Supplemental Disclosure of Cash Flow Information - Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 18 | $ 4 | $ 12 | |
Restricted cash | 0 | 1 | ||
Cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows | $ 18 | $ 4 | $ 13 | $ 22 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Related Party Transaction [Line Items] | |
Partnership's revenues from affiliated companies as a percent of total revenues | 6.00% |
Subsidiary of Common Parent | CenterPoint | Three Services Included in Transportation and Storage Agreements | |
Related Party Transaction [Line Items] | |
Period of written notice | 180 days |
CenterPoint and OGE Energy | Minimum | |
Related Party Transaction [Line Items] | |
Period notice of termination for reimbursements for all employee costs | 90 days |
OGE Energy | Defined Benefit and Retiree Medical Plans | |
Related Party Transaction [Line Items] | |
Expense reimbursement, 2018 and thereafter | $ 5 |
OGE Energy | Certain Services and Support Functions | |
Related Party Transaction [Line Items] | |
Expense reimbursement annual caps | 1 |
CenterPoint | Certain Services and Support Functions | |
Related Party Transaction [Line Items] | |
Expense reimbursement annual caps | $ 0 |
Related Party Transactions - Re
Related Party Transactions - Related Party Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Related Party Transaction [Line Items] | ||||
Revenues from affiliated companies | $ 30 | $ 38 | $ 114 | $ 125 |
Cost of natural gas purchases from affiliate | 6 | 12 | 21 | 25 |
CenterPoint | ||||
Related Party Transaction [Line Items] | ||||
Cost of natural gas purchases from affiliate | 0 | 0 | 1 | 0 |
CenterPoint | Gas Transportation and Storage | ||||
Related Party Transaction [Line Items] | ||||
Revenues from affiliated companies | 17 | 22 | 76 | 78 |
CenterPoint | Gas Sales | ||||
Related Party Transaction [Line Items] | ||||
Revenues from affiliated companies | 0 | 3 | 1 | 7 |
OGE Energy | ||||
Related Party Transaction [Line Items] | ||||
Cost of natural gas purchases from affiliate | 6 | 12 | 20 | 25 |
OGE Energy | Gas Transportation and Storage | ||||
Related Party Transaction [Line Items] | ||||
Revenues from affiliated companies | 9 | 9 | 28 | 35 |
OGE Energy | Gas Sales | ||||
Related Party Transaction [Line Items] | ||||
Revenues from affiliated companies | 4 | 4 | 9 | 5 |
OGE Energy | Seconded Employee Costs | ||||
Related Party Transaction [Line Items] | ||||
Seconded employee costs | $ 5 | $ 4 | $ 13 | $ 15 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 13, 2018 | Jan. 01, 2017 | Sep. 30, 2020 |
Gathering and processing agreement term (in years) | 10 years | ||
Minimum volume commitment fee | $ 175 | ||
Minimum volume commitment fees remaining in 2020 | 3 | ||
Minimum volume commitment fees per year from 2021 through 2027 | 23 | ||
Minimum volume commitment fees in 2028 | 11 | ||
Estimated Cost to Complete Pipeline Project | $ 500 | ||
Firm transportation service agreement term (in years) | 20 years |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense | $ 3 | $ 4 | $ 10 | $ 13 |
Performance units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense | 1 | 3 | 5 | 8 |
Phantom units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense | $ 2 | $ 1 | $ 5 | $ 5 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Assumptions Related to Performance Share Units (Details) - Performance units | 9 Months Ended | |
Sep. 30, 2020$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of units granted | shares | 933,738 | [1] |
Fair value of units granted | $ / shares | $ 7 | [1] |
Expected distribution yield | 12.27% | |
Expected price volatility | 27.70% | |
Risk-free interest rate | 0.85% | |
Expected life of units (in years) | 3 years | |
[1] | Performance units represents the target number of performance units granted. The actual number of performance units earned, if any, is dependent upon performance and may range from 0% to 200% of the target. |
Equity-Based Compensation - Pha
Equity-Based Compensation - Phantom Units (Details) - Phantom units | 9 Months Ended | |
Sep. 30, 2020$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Phantom Units granted | shares | 967,095 | [1] |
Fair value of phantom units granted (in dollars per share) | $ 6.51 | [1] |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of phantom units granted (in dollars per share) | 2.67 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of phantom units granted (in dollars per share) | $ 10.13 | |
[1] | Performance units represents the target number of performance units granted. The actual number of performance units earned, if any, is dependent upon performance and may range from 0% to 200% of the target. |
Equity-Based Compensation - Equ
Equity-Based Compensation - Equity Units Activity (Details) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($)$ / sharesshares | ||
Performance units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Units Outstanding (in units) | shares | 1,393,329 | |
Granted (in units) | shares | 933,738 | [1] |
Vested (in units) | shares | (387,174) | [2] |
Forfeited (in units) | shares | (154,534) | |
Units Outstanding (in units) | shares | 1,785,359 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Units Outstanding (in dollars per unit) | $ 19.04 | |
Granted (in dollars per unit) | 7 | [1] |
Vested (in dollars per unit) | 19.23 | [2] |
Forfeited (in dollars per unit) | 14.39 | |
Units Outstanding (in dollars per unit) | $ 13.11 | |
Aggregate Intrinsic Value of Units Outstanding | $ | $ 7 | |
Performance units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Payout percentage | 0.00% | |
Performance units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Payout percentage | 200.00% | |
Performance units | Annual Grant in 2017 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in units) | shares | 376,292 | |
Phantom units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Units Outstanding (in units) | shares | 1,392,560 | |
Granted (in units) | shares | 967,095 | [1] |
Vested (in units) | shares | (378,192) | [2] |
Forfeited (in units) | shares | (189,397) | |
Units Outstanding (in units) | shares | 1,792,066 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Units Outstanding (in dollars per unit) | $ 14.65 | |
Granted (in dollars per unit) | 6.51 | [1] |
Vested (in dollars per unit) | 15.99 | [2] |
Forfeited (in dollars per unit) | 10.47 | |
Units Outstanding (in dollars per unit) | $ 10.42 | |
Aggregate Intrinsic Value of Units Outstanding | $ | $ 7 | |
Phantom units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Granted (in dollars per unit) | $ 2.67 | |
Phantom units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Granted (in dollars per unit) | $ 10.13 | |
[1] | Performance units represents the target number of performance units granted. The actual number of performance units earned, if any, is dependent upon performance and may range from 0% to 200% of the target. | |
[2] | Performance units vested as of September 30, 2020 include 376,292 units from the 2017 annual grant, which were approved by the Board of Directors in 2017 and, based on the level of achievement of a performance goal established by the Board of Directors over the performance period of January 1, 2017 through December 31, 2019, no performance units vested. |
Equity-Based Compensation - Unr
Equity-Based Compensation - Unrecognized Compensation Cost (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost (In millions) | $ 19 |
Performance units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost (In millions) | $ 11 |
Weighted Average Period for Recognition (In years) | 1 year 8 months 4 days |
Phantom units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost (In millions) | $ 8 |
Weighted Average Period for Recognition (In years) | 1 year 6 months 10 days |
Long Term Incentive Plan | Common Unit [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for issuance | shares | 5,294,366 |
Reportable Segments - Schedule
Reportable Segments - Schedule of Financial Data for Business Segments and Services (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Total Revenues | $ 596 | $ 699 | $ 1,759 | $ 2,229 | |
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) | 250 | 263 | 653 | 958 | |
Operation and maintenance, General and administrative | 124 | 136 | 386 | 389 | |
Depreciation and amortization | 105 | 108 | 314 | 323 | |
Impairments of property, plant and equipment and goodwill | 0 | 0 | 28 | 0 | |
Taxes other than income tax | 17 | 17 | 52 | 52 | |
Operating Income | 100 | 175 | 326 | 507 | |
Total assets | 11,775 | 11,775 | $ 12,266 | ||
Capital expenditures | 50 | 101 | 152 | 353 | |
Operating Segments | Gathering and Processing | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | 463 | 542 | 1,331 | 1,759 | |
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) | 244 | 238 | 631 | 895 | |
Operation and maintenance, General and administrative | 77 | 79 | 250 | 238 | |
Depreciation and amortization | 75 | 77 | 223 | 229 | |
Impairments of property, plant and equipment and goodwill | 28 | ||||
Taxes other than income tax | 10 | 10 | 32 | 31 | |
Operating Income | 57 | 138 | 167 | 366 | |
Total assets | 9,525 | 9,525 | 9,739 | ||
Capital expenditures | 21 | 70 | 79 | 267 | |
Operating Segments | Transportation and Storage | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | 205 | 234 | 622 | 802 | |
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) | 78 | 102 | 215 | 394 | |
Operation and maintenance, General and administrative | 47 | 57 | 137 | 152 | |
Depreciation and amortization | 30 | 31 | 91 | 94 | |
Impairments of property, plant and equipment and goodwill | 0 | ||||
Taxes other than income tax | 7 | 7 | 20 | 21 | |
Operating Income | 43 | 37 | 159 | 141 | |
Total assets | 5,524 | 5,524 | 5,886 | ||
Capital expenditures | 29 | 31 | 73 | 86 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | (72) | (77) | (194) | (332) | |
Cost of natural gas and natural gas liquids (excluding depreciation and amortization shown separately) | (72) | (77) | (193) | (331) | |
Operation and maintenance, General and administrative | 0 | 0 | (1) | (1) | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Impairments of property, plant and equipment and goodwill | 0 | ||||
Taxes other than income tax | 0 | 0 | 0 | 0 | |
Operating Income | 0 | 0 | 0 | 0 | |
Total assets | (3,274) | (3,274) | $ (3,359) | ||
Capital expenditures | 0 | 0 | 0 | 0 | |
Product | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | 280 | 320 | 764 | 1,156 | |
Product | Operating Segments | Gathering and Processing | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | 271 | 294 | 739 | 1,096 | |
Product | Operating Segments | Transportation and Storage | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | 79 | 100 | 213 | 381 | |
Product | Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | (70) | (74) | (188) | (321) | |
Natural Gas, Gathering, Transportation, Marketing and Processing | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | 316 | 379 | 995 | 1,073 | |
Natural Gas, Gathering, Transportation, Marketing and Processing | Operating Segments | Gathering and Processing | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | 192 | 248 | 592 | 663 | |
Natural Gas, Gathering, Transportation, Marketing and Processing | Operating Segments | Transportation and Storage | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | 126 | 134 | 409 | 421 | |
Natural Gas, Gathering, Transportation, Marketing and Processing | Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenues | $ (2) | $ (3) | $ (6) | $ (11) |