| SEGMENTS |
SEGMENTS Segment Descriptions - Our operations are divided into four reportable business segments, as follows: •our Natural Gas Gathering and Processing segment gathers, compresses, treats, processes and markets natural gas; •our Natural Gas Liquids segment gathers, treats, fractionates, transports, stores, markets and distributes NGLs; •our Natural Gas Pipelines segment transports, stores and markets natural gas; and •our Refined Products and Crude segment gathers, transports, stores, distributes, blends and markets Refined Products and crude oil.
Other and eliminations consist of corporate costs, the operating activities of our headquarters building and related parking facility, the activity of our wholly owned captive insurance company and eliminations necessary to reconcile our reportable segments to our Consolidated Financial Statements.
The significant expense categories and amounts included in the tables below align with the segment-level information that is regularly provided to the chief operating decision-maker. Total assets by segment is excluded from the tables below as that information is not regularly provided to the chief operating decision-maker. Operating Segment Information - The following tables set forth certain selected financial information for our operating segments for the periods indicated:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, 2026 | Natural Gas Gathering and Processing | | Natural Gas Liquids | | Natural Gas Pipelines | | Refined Products and Crude | | Total Segments | | (Millions of dollars) | | Liquids commodity sales | $ | 1,433 | | | $ | 4,433 | | | $ | — | | | $ | 6,485 | | | $ | 12,351 | | | Residue natural gas sales | 171 | | | — | | | 278 | | | — | | | 449 | | | Exchange services and natural gas gathering and processing revenue | 269 | | | 107 | | | — | | | — | | | 376 | | | Transportation and storage revenue | — | | | 50 | | | 170 | | | 608 | | | 828 | | | Other revenue | 5 | | | 3 | | | 1 | | | 41 | | | 50 | | | Total revenues (a) | 1,878 | | | 4,593 | | | 449 | | | 7,134 | | | 14,054 | | | Cost of sales and fuel (exclusive of depreciation and operating costs) | (1,079) | | | (3,746) | | | (156) | | | (6,268) | | | (11,249) | | | Operating costs | (260) | | | (223) | | | (64) | | | (268) | | | (815) | | | Adjusted EBITDA from unconsolidated affiliates | 1 | | | 26 | | | 72 | | | 35 | | | 134 | | | Noncash compensation expense and other | 6 | | | 9 | | | (4) | | | (6) | | | 5 | | | Segment adjusted EBITDA | $ | 546 | | | $ | 659 | | | $ | 297 | | | $ | 627 | | | $ | 2,129 | | | Depreciation and amortization | $ | (126) | | | $ | (116) | | | $ | (28) | | | $ | (112) | | | $ | (382) | | | Equity in net earnings from investments | $ | 1 | | | $ | 23 | | | $ | 53 | | | $ | 26 | | | $ | 103 | | | Capital expenditures | $ | 185 | | | $ | 202 | | | $ | 15 | | | $ | 191 | | | $ | 593 | |
(a) - Intersegment revenues are primarily from commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly. Intersegment revenues totaled $1.5 billion for the Natural Gas Gathering and Processing segment, $0.4 billion for the Natural Gas Liquids segment and were not material for the Refined Products and Crude and Natural Gas Pipelines segments.
| | | | | | | | | | | | | | | | | | Three Months Ended
June 30, 2026 | Total Segments | | Other and Eliminations | | Total | | (Millions of dollars) | | Reconciliations of total segments to consolidated | | | | | | | Liquids commodity sales | $ | 12,351 | | | $ | (1,975) | | | $ | 10,376 | | | Residue natural gas sales | 449 | | | (11) | | | 438 | | | Exchange services and natural gas gathering and processing revenue | 376 | | | — | | | 376 | | | Transportation and storage revenue | 828 | | | (12) | | | 816 | | | Other revenue | 50 | | | (7) | | | 43 | | | Total revenues (a) | $ | 14,054 | | | $ | (2,005) | | | $ | 12,049 | | | Cost of sales and fuel (exclusive of depreciation and operating costs) | $ | (11,249) | | | $ | 2,007 | | | $ | (9,242) | | | Operating costs | $ | (815) | | | $ | (8) | | | $ | (823) | | | Depreciation and amortization | $ | (382) | | | $ | (5) | | | $ | (387) | | | Equity in net earnings from investments | $ | 103 | | | $ | — | | | $ | 103 | | | Capital expenditures | $ | 593 | | | $ | 20 | | | $ | 613 | |
(a) - Substantially all of our revenues are related to contracts with customers. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, 2025 | Natural Gas Gathering and Processing | | Natural Gas Liquids | | Natural Gas Pipelines | | Refined Products and Crude | | Total Segments | | (Millions of dollars) | | Liquids commodity sales | $ | 1,100 | | | $ | 3,740 | | | $ | — | | | $ | 2,316 | | | $ | 7,156 | | | Residue natural gas sales | 449 | | | — | | | 256 | | | — | | | 705 | | | Exchange services and natural gas gathering and processing revenue | 290 | | | 93 | | | — | | | — | | | 383 | | | Transportation and storage revenue | — | | | 34 | | | 149 | | | 563 | | | 746 | | | Other revenue | 9 | | | 4 | | | — | | | 29 | | | 42 | | | Total revenues (a) | 1,848 | | | 3,871 | | | 405 | | | 2,908 | | | 9,032 | | | Cost of sales and fuel (exclusive of depreciation and operating costs) | (1,082) | | | (3,030) | | | (219) | | | (2,175) | | | (6,506) | | | Operating costs | (236) | | | (203) | | | (56) | | | (217) | | | (712) | | | Adjusted EBITDA from unconsolidated affiliates | 1 | | | 22 | | | 55 | | | 34 | | | 112 | | | Noncash compensation expense and other | 9 | | | 13 | | | 3 | | | 7 | | | 32 | | | Segment adjusted EBITDA | $ | 540 | | | $ | 673 | | | $ | 188 | | | $ | 557 | | | $ | 1,958 | | | Depreciation and amortization | $ | (122) | | | $ | (112) | | | $ | (25) | | | $ | (106) | | | $ | (365) | | | Equity in net earnings from investments | $ | — | | | $ | 18 | | | $ | 38 | | | $ | 25 | | | $ | 81 | | | Capital expenditures | $ | 341 | | | $ | 135 | | | $ | 52 | | | $ | 184 | | | $ | 712 | |
(a) - Intersegment revenues are primarily from commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly. Intersegment revenues totaled $0.6 billion for the Natural Gas Gathering and Processing segment, $0.4 billion for the Natural Gas Liquids segment, $0.1 billion for the Refined Products and Crude segment and were not material for the Natural Gas Pipelines segment.
| | | | | | | | | | | | | | | | | | Three Months Ended
June 30, 2025 | Total Segments | | Other and Eliminations | | Total | | (Millions of dollars) | | Reconciliations of total segments to consolidated | | | | | | | Liquids commodity sales | $ | 7,156 | | | $ | (1,124) | | | $ | 6,032 | | | Residue natural gas sales | 705 | | | (11) | | | 694 | | | Exchange services and natural gas gathering and processing revenue | 383 | | | — | | | 383 | | | Transportation and storage revenue | 746 | | | (5) | | | 741 | | | Other revenue | 42 | | | (5) | | | 37 | | | Total revenues (a) | $ | 9,032 | | | $ | (1,145) | | | $ | 7,887 | | | Cost of sales and fuel (exclusive of depreciation and operating costs) | $ | (6,506) | | | $ | 1,146 | | | $ | (5,360) | | | Operating costs | $ | (712) | | | $ | 6 | | | $ | (706) | | | Depreciation and amortization | $ | (365) | | | $ | (3) | | | $ | (368) | | | Equity in net earnings from investments | $ | 81 | | | $ | — | | | $ | 81 | | | Capital expenditures | $ | 712 | | | $ | 37 | | | $ | 749 | |
(a) - Substantially all of our revenues are related to contracts with customers. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended
June 30, 2026 | Natural Gas Gathering and Processing | | Natural Gas Liquids | | Natural Gas Pipelines | | Refined Products and Crude | | Total Segments | | (Millions of dollars) | | Liquids commodity sales | $ | 2,459 | | | $ | 7,914 | | | $ | — | | | $ | 10,613 | | | $ | 20,986 | | | Residue natural gas sales | 882 | | | — | | | 733 | | | — | | | 1,615 | | | Exchange services and natural gas gathering and processing revenue | 520 | | | 199 | | | — | | | — | | | 719 | | | Transportation and storage revenue | — | | | 120 | | | 341 | | | 1,168 | | | 1,629 | | | Other revenue | 14 | | | 6 | | | 1 | | | 69 | | | 90 | | | Total revenues (a) | 3,875 | | | 8,239 | | | 1,075 | | | 11,850 | | | 25,039 | | | Cost of sales and fuel (exclusive of depreciation and operating costs) | (2,372) | | | (6,514) | | | (466) | | | (10,320) | | | (19,672) | | | Operating costs | (505) | | | (431) | | | (124) | | | (496) | | | (1,556) | | | Adjusted EBITDA from unconsolidated affiliates | 2 | | | 53 | | | 150 | | | 59 | | | 264 | | | Noncash compensation expense and other | 13 | | | 18 | | | 1 | | | 26 | | | 58 | | | Segment adjusted EBITDA | $ | 1,013 | | | $ | 1,365 | | | $ | 636 | | | $ | 1,119 | | | $ | 4,133 | | | Depreciation and amortization | $ | (261) | | | $ | (223) | | | $ | (53) | | | $ | (221) | | | $ | (758) | | | Equity in net earnings from investments | $ | 1 | | | $ | 47 | | | $ | 111 | | | $ | 33 | | | $ | 192 | | | Impairment of equity investments | $ | — | | | $ | — | | | $ | — | | | $ | (60) | | | $ | (60) | | | Investments in unconsolidated affiliates | $ | 41 | | | $ | 802 | | | $ | 1,113 | | | $ | 1,174 | | | $ | 3,130 | | | | | | | | | | | | | Capital expenditures | $ | 502 | | | $ | 512 | | | $ | 61 | | | $ | 371 | | | $ | 1,446 | |
(a) - Intersegment revenues are primarily from commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly. Intersegment revenues totaled $2.5 billion for the Natural Gas Gathering and Processing segment, $0.7 billion for the Natural Gas Liquids segment and were not material for the Refined Products and Crude and Natural Gas Pipelines segments.
| | | | | | | | | | | | | | | | | | Six Months Ended
June 30, 2026 | Total Segments | | Other and Eliminations | | Total | | (Millions of dollars) | | Reconciliations of total segments to consolidated | | | | | | | Liquids commodity sales | $ | 20,986 | | | $ | (3,311) | | | $ | 17,675 | | | Residue natural gas sales | 1,615 | | | (31) | | | 1,584 | | | Exchange services and natural gas gathering and processing revenue | 719 | | | — | | | 719 | | | Transportation and storage revenue | 1,629 | | | (25) | | | 1,604 | | | Other revenue | 90 | | | (5) | | | 85 | | | Total revenues (a) | $ | 25,039 | | | $ | (3,372) | | | $ | 21,667 | | | Cost of sales and fuel (exclusive of depreciation and operating costs) | $ | (19,672) | | | $ | 3,377 | | | $ | (16,295) | | | Operating costs | $ | (1,556) | | | $ | (13) | | | $ | (1,569) | | | Depreciation and amortization | $ | (758) | | | $ | (7) | | | $ | (765) | | | Equity in net earnings from investments | $ | 192 | | | $ | — | | | $ | 192 | | | Impairment of equity investments | $ | (60) | | | $ | — | | | $ | (60) | | | Investments in unconsolidated affiliates | $ | 3,130 | | | $ | 9 | | | $ | 3,139 | | | | | | | | | Capital expenditures | $ | 1,446 | | | $ | 31 | | | $ | 1,477 | |
(a) - Substantially all of our revenues are related to contracts with customers. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended
June 30, 2025 | Natural Gas Gathering and Processing | | Natural Gas Liquids | | Natural Gas Pipelines | | Refined Products and Crude | | Total Segments | | (Millions of dollars) | | Liquids commodity sales | $ | 2,327 | | | $ | 7,852 | | | $ | — | | | $ | 4,217 | | | $ | 14,396 | | | Residue natural gas sales | 1,147 | | | — | | | 576 | | | — | | | 1,723 | | | Exchange services and natural gas gathering and processing revenue | 554 | | | 196 | | | — | | | — | | | 750 | | | Transportation and storage revenue | — | | | 85 | | | 293 | | | 1,102 | | | 1,480 | | | Other revenue | 17 | | | 6 | | | — | | | 57 | | | 80 | | | Total revenues (a) | 4,045 | | | 8,139 | | | 869 | | | 5,376 | | | 18,429 | | | Cost of sales and fuel (exclusive of depreciation and operating costs) | (2,538) | | | (6,487) | | | (480) | | | (4,010) | | | (13,515) | | | Operating costs | (493) | | | (413) | | | (108) | | | (441) | | | (1,455) | | | Adjusted EBITDA from unconsolidated affiliates | 3 | | | 50 | | | 116 | | | 82 | | | 251 | | | Noncash compensation expense and other | 14 | | | 19 | | | 3 | | | 21 | | | 57 | | | Segment adjusted EBITDA | $ | 1,031 | | | $ | 1,308 | | | $ | 400 | | | $ | 1,028 | | | $ | 3,767 | | | Depreciation and amortization | $ | (248) | | | $ | (225) | | | $ | (48) | | | $ | (222) | | | $ | (743) | | | Equity in net earnings from investments | $ | 2 | | | $ | 45 | | | $ | 77 | | | $ | 65 | | | $ | 189 | | | Investments in unconsolidated affiliates | $ | 39 | | | $ | 550 | | | $ | 843 | | | $ | 1,011 | | | $ | 2,443 | | | | | | | | | | | | | Capital expenditures | $ | 582 | | | $ | 306 | | | $ | 114 | | | $ | 325 | | | $ | 1,327 | |
(a) - Intersegment revenues are primarily from commodity sales, which are based on the contracted selling price that is generally index-based and settled monthly. Intersegment revenues totaled $1.3 billion for the Natural Gas Gathering and Processing segment, $1.0 billion for the Natural Gas Liquids segment, $0.2 billion for the Refined Products and Crude segment and were not material for the Natural Gas Pipelines segment.
| | | | | | | | | | | | | | | | | | Six Months Ended
June 30, 2025 | Total Segments | | Other and Eliminations | | Total | | (Millions of dollars) | | Reconciliations of total segments to consolidated | | | | | | | Liquids commodity sales | $ | 14,396 | | | $ | (2,447) | | | $ | 11,949 | | | Residue natural gas sales | 1,723 | | | (34) | | | 1,689 | | | Exchange services and natural gas gathering and processing revenue | 750 | | | — | | | 750 | | | Transportation and storage revenue | 1,480 | | | (10) | | | 1,470 | | | Other revenue | 80 | | | (8) | | | 72 | | | Total revenues (a) | $ | 18,429 | | | $ | (2,499) | | | $ | 15,930 | | | Cost of sales and fuel (exclusive of depreciation and operating costs) | $ | (13,515) | | | $ | 2,500 | | | $ | (11,015) | | | Operating costs | $ | (1,455) | | | $ | (3) | | | $ | (1,458) | | | Depreciation and amortization | $ | (743) | | | $ | (5) | | | $ | (748) | | | Equity in net earnings from investments | $ | 189 | | | $ | — | | | $ | 189 | | | Investments in unconsolidated affiliates | $ | 2,443 | | | $ | 3 | | | $ | 2,446 | | | | | | | | | Capital expenditures | $ | 1,327 | | | $ | 51 | | | $ | 1,378 | |
(a) - Substantially all of our revenues are related to contracts with customers. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | Reconciliation of income before income taxes to total segment adjusted EBITDA | | (Millions of dollars) | | Income before income taxes | | $ | 1,266 | | | $ | 1,113 | | | $ | 2,287 | | | $ | 2,001 | | | | | Interest expense, net of capitalized interest | | 434 | | | 438 | | | 873 | | | 880 | | | | | Depreciation and amortization | | 387 | | | 368 | | | 765 | | | 748 | | | | | | | | | | | | | | | Adjusted EBITDA from unconsolidated affiliates | | 134 | | | 113 | | | 264 | | | 252 | | | | | Equity in net earnings from investments | | (103) | | | (81) | | | (192) | | | (189) | | | | | Impairment of equity investments | | — | | | — | | | 60 | | | — | | | | | Noncash compensation expense and other (a) | | 3 | | | 30 | | | 61 | | | 64 | | | | | Corporate other (a) | | 8 | | | (23) | | | 15 | | | 11 | | | | | Total segment adjusted EBITDA | | $ | 2,129 | | | $ | 1,958 | | | $ | 4,133 | | | $ | 3,767 | | | |
(a) - The three months ended June 30, 2025, included transaction costs related primarily to the EnLink Acquisition of $21 million included within corporate other and $1 million included within noncash compensation expense and other. The six months ended June 30, 2025, included transaction costs related primarily to the EnLink Acquisition of $52 million included within corporate other and $12 million included within noncash compensation expense and other.
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