v3.26.1
Reportable Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Reportable Segments REPORTABLE SEGMENTS
Our reportable segments, which conduct their business primarily in the United States, are as follows:
•intrastate transportation and storage;
•interstate transportation and storage;
•midstream;
•NGL and refined products transportation and services;
•crude oil transportation and services;
•investment in Sunoco LP;
•investment in USAC; and
•all other.
Consolidated revenues and expenses reflect the elimination of all material intercompany transactions.
Revenues from our intrastate transportation and storage segment are primarily reflected in natural gas sales and gathering, transportation and other fees. Revenues from our interstate transportation and storage segment are primarily reflected in gathering, transportation and other fees. Revenues from our midstream segment are primarily reflected in natural gas sales, NGL sales and gathering, transportation and other fees. Revenues from our NGL and refined products transportation and services segment are primarily reflected in NGL sales and gathering, transportation and other fees. Revenues from our
crude oil transportation and services segment are primarily reflected in crude sales. Revenues from our investment in Sunoco LP segment are primarily reflected in refined product sales and, subsequent to Sunoco LP’s acquisition of NuStar in May 2024, also in gathering, transportation and other fees. Revenues from our investment in USAC segment are primarily reflected in gathering, transportation and other fees. Revenues from our all other segment are primarily reflected in natural gas sales and gathering, transportation and other fees. Revenues from our all other segment are primarily reflected in natural gas sales.
We report Segment Adjusted EBITDA (defined below) as the measure of segment performance reviewed by our chief operating decision maker (“CODM”). The role of the CODM is held by the Partnership’s co-chief executive officers (“co-CEOs”). Both of the co-CEOs fulfill specific functions that impact the allocation of resources and assessment of performance among our reportable segments, including the approval of budgets and the evaluation of growth projects and acquisitions. The Partnership’s co-CEOs receive and review the same information with respect to the Partnership’s segment operating results.
The co-CEOs use Segment Adjusted EBITDA to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. The co-CEOs also use Segment Adjusted EBITDA to assess the performance for each segment and in the compensation of certain employees. The co-CEOs consider forecast-to-actual variances on a monthly basis when making decisions about allocating capital and personnel to the segments. Assets by segment are not a measure used to assess our performance by the co-CEOs and thus are not reported in our disclosures.
We define Segment Adjusted EBITDA as total Partnership earnings before interest, taxes, depreciation, depletion, amortization and other non-cash items, such as non-cash compensation expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, inventory valuation adjustments, non-cash impairment charges, losses on extinguishments of debt, certain foreign currency transaction gains and losses and other non-operating income or expense items, as well as certain non-recurring gains and losses. Inventory valuation adjustments that are excluded from the calculation of Adjusted EBITDA represent only the changes in lower of cost or market reserves on inventory that is carried at LIFO. These amounts are unrealized valuation adjustments applied to Sunoco LP’s fuel volumes remaining in inventory at the end of the period.
Segment Adjusted EBITDA and consolidated Adjusted EBITDA reflect amounts for unconsolidated affiliates based on the same recognition and measurement methods used to record equity in earnings of unconsolidated affiliates. Adjusted EBITDA related to unconsolidated affiliates excludes the same items with respect to the unconsolidated affiliate as those excluded from the calculation of Segment Adjusted EBITDA and consolidated Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliates, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliates. We do not control our unconsolidated affiliates; therefore, we do not control the earnings or cash flows of such affiliates. The use of Segment Adjusted EBITDA or Adjusted EBITDA related to unconsolidated affiliates as an analytical tool should be limited accordingly.
The following tables present financial information by segment:
Three Months Ended
March 31,
20262025
Revenues:
Intrastate transportation and storage:
Revenues from external customers$992 $1,147 
Intersegment revenues164 147 
1,156 1,294 
Interstate transportation and storage:
Revenues from external customers627 613 
Intersegment revenues7 8 
634 621 
Midstream:
Revenues from external customers909 884 
Intersegment revenues2,135 2,772 
3,044 3,656 
NGL and refined products transportation and services:
Revenues from external customers5,704 6,034 
Intersegment revenues969 875 
6,673 6,909 
Crude oil transportation and services:
Revenues from external customers7,751 6,205 
Intersegment revenues7 3 
7,758 6,208 
Investment in Sunoco LP:
Revenues from external customers10,689 5,177 
Intersegment revenues1 2 
10,690 5,179 
Investment in USAC:
Revenues from external customers316 230 
Intersegment revenues15 15 
331 245 
All other:
Revenues from external customers783 730 
Intersegment revenues271 265 
1,054 995 
Eliminations(3,569)(4,087)
Total revenues$27,771 $21,020 
Three Months Ended
March 31,
20262025
Cost of products sold:
Intrastate transportation and storage$710 $964 
Interstate transportation and storage3 2 
Midstream1,674 2,260 
NGL and refined products transportation and services5,484 5,641 
Crude oil transportation and services6,792 5,214 
Investment in Sunoco LP9,001 4,526 
Investment in USAC29 38 
All other994 995 
Eliminations(3,538)(4,069)
Total cost of products sold$21,149 $15,571 
Three Months Ended
March 31,
20262025
Operating expenses, excluding non-cash compensation, amortization, accretion and other non-cash expenses:
Intrastate transportation and storage$65 $57 
Interstate transportation and storage215 189 
Midstream446 421 
NGL and refined products transportation and services298 247 
Crude oil transportation and services223 213 
Investment in Sunoco LP381 158 
Investment in USAC89 43 
All other7 1 
Eliminations(49)(45)
Total operating expenses, excluding non-cash compensation, amortization, accretion and other non-cash expenses$1,675 $1,284 
Three Months Ended
March 31,
20262025
Depreciation, depletion and amortization:
Intrastate transportation and storage$52 $51 
Interstate transportation and storage145 142 
Midstream469 448 
NGL and refined products transportation and services260 248 
Crude oil transportation and services268 237 
Investment in Sunoco LP286 156 
Investment in USAC87 70 
All other16 15 
Total depreciation, depletion and amortization$1,583 $1,367 
Three Months Ended
March 31,
20262025
Selling, general and administrative expenses, excluding non-cash compensation and accretion expenses:
Intrastate transportation and storage$13 $14 
Interstate transportation and storage30 37 
Midstream54 56 
NGL and refined products transportation and services48 48 
Crude oil transportation and services1 44 
Investment in Sunoco LP151 36 
Investment in USAC33 14 
All other4 13 
Total selling, general and administrative expenses, excluding non-cash compensation and accretion expenses$334 $262 
Three Months Ended
March 31,
20262025
Equity in earnings of unconsolidated affiliates (1) :
Intrastate transportation and storage$3 $5 
Interstate transportation and storage75 63 
Midstream2 3 
NGL and refined products transportation and services19 17 
Crude oil transportation and services6 4 
All other5 — 
Total equity in earnings of unconsolidated affiliates$110 $92 
(1)Amounts reflected above exclude Sunoco LP’s earnings from the ET-S Permian and J.C. Nolan joint ventures, which are eliminated in consolidation.
Three Months Ended
March 31,
20262025
Other income (expense) (1) :
Intrastate transportation and storage$69 $85 
Interstate transportation and storage133 119 
Midstream17 6 
NGL and refined products transportation and services320 5 
Crude oil transportation and services127 5 
Investment in Sunoco LP(299)(1)
Investment in USAC8 — 
All other6 26 
Eliminations(57)(50)
Total other income$324 $195 
(1)Other income and expense include, if applicable to a segment, Adjusted EBITDA related to unconsolidated affiliates, unrealized gains and losses on commodity risk management activities and other items. For the investment in Sunoco LP segment, this also includes inventory valuation adjustments.
Three Months Ended
March 31,
20262025
Additions to property, plant and equipment (1):
Intrastate transportation and storage$586 $226 
Interstate transportation and storage253 46 
Midstream394 349 
NGL and refined products transportation and services317 363 
Crude oil transportation and services85 107 
Investment in Sunoco LP199 101 
Investment in USAC35 33 
All other66 29 
Total additions to property, plant and equipment$1,935 $1,254 
(1)Amounts are presented on the accrual basis, net of contributions in aid of constructions costs. Amounts exclude acquisitions and include only the Partnership’s proportionate share of capital expenditures related to joint ventures.
March 31,
2026		December 31,
2025
Investments in unconsolidated affiliates (1):
Intrastate transportation and storage$152 $151 
Interstate transportation and storage2,388 2,353 
Midstream132 130 
NGL and refined products transportation and services379 362 
Crude oil transportation and services189 190 
Investment in Sunoco LP345 342 
All other61 61 
Total investments in unconsolidated affiliates$3,646 $3,589 
(1)Amounts reflected above exclude Sunoco LP’s investments in the ET-S Permian and J.C. Nolan joint ventures, which are eliminated in consolidation.
Three Months Ended
March 31,
20262025
Segment Adjusted EBITDA:
Intrastate transportation and storage$437 $344 
Interstate transportation and storage519 512 
Midstream887 925 
NGL and refined products transportation and services1,163 978 
Crude oil transportation and services869 742 
Investment in Sunoco LP858 458 
Investment in USAC188 150 
All other16 (11)
Adjusted EBITDA (consolidated)$4,937 $4,098 
Three Months Ended
March 31,
20262025
Reconciliation of net income to Adjusted EBITDA:
Net income$1,976 $1,720 
Depreciation, depletion and amortization1,583 1,367 
Interest expense, net of interest capitalized947 809 
Income tax expense135 41 
Impairment loss— 4 
Non-cash compensation expense42 37 
Unrealized losses on commodity risk management activities536 69 
Inventory valuation adjustments (Sunoco LP)(444)(61)
Losses on extinguishments of debt7 2 
Adjusted EBITDA related to unconsolidated affiliates196 167 
Equity in earnings of unconsolidated affiliates(110)(92)
Other, net69 35 
Adjusted EBITDA (consolidated)$4,937 $4,098