Hedging Activities and Fair Value Measurements (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Derivative Instruments and Hedges, Assets [Abstract] |
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| Schedule of Hedging Instruments Under the FASB's Derivative and Hedging Guidance |
The following table summarizes our portfolio of commodity derivative instruments outstanding at September 30, 2026 (volume measures as noted): | | | | | | | | | | | | | Volume (1) | Accounting
Treatment | | Derivative Purpose | Current (2) | Long-Term (2) | | Derivatives designated as hedging instruments: | | | | | Natural gas processing: | | | | Forecasted natural gas purchases for plant thermal reduction (Bcf) | 11.6 | 1.6 | Cash flow hedge | | Forecasted sales of natural gas (Bcf) | 33.7 | 25.3 | Cash flow hedge | | Forecasted sales of NGLs (MMBbls) | 5.1 | 0.7 | Cash flow hedge | | Octane enhancement: | | | | | Forecasted sales of octane enhancement products (MMBbls) | 4.5 | 0.6 | Cash flow hedge | | Natural gas marketing: | | | | | Natural gas storage inventory management activities (Bcf) | 0.5 | n/a | Fair value hedge | | NGL marketing: | | | | | Forecasted purchases of NGLs and related hydrocarbon products (MMBbls) | 233.8 | 19.9 | Cash flow hedge | | Forecasted sales of NGLs and related hydrocarbon products (MMBbls) | 229.1 | 37.6 | Cash flow hedge | | Refined products marketing: | | | | | Forecasted purchases of refined products (MMBbls) | 2.0 | n/a | Cash flow hedge | | Forecasted sales of refined products (MMBbls) | 2.7 | n/a | Cash flow hedge | | Crude oil marketing: | | | | | Forecasted purchases of crude oil (MMBbls) | 23.2 | 6.6 | Cash flow hedge | | Forecasted sales of crude oil (MMBbls) | 29.0 | 13.1 | Cash flow hedge | | Petrochemical marketing: | | | | | | | | | Forecasted sales of petrochemical products (MMBbls) | 0.1 | n/a | Cash flow hedge | | Commercial energy: | | | | | Forecasted purchases of power related to asset operations (terawatt hours (“TWh”)) | 0.3 | 0.1 | Cash flow hedge | | | | | | Derivatives not designated as hedging instruments: | | | | | Natural gas risk management activities (Bcf) (3) | 40.3 | 9.5 | Mark-to-market | | NGL risk management activities (MMBbls) (3) | 31.8 | 7.3 | Mark-to-market | | Refined products risk management activities (MMBbls) (3) | 1.6 | n/a | Mark-to-market | | Crude oil risk management activities (MMBbls) (3) | 22.8 | 7.6 | Mark-to-market | | | | | | Commercial energy risk management activities (TWh) (3) | 0.5 | 0.8 | Mark-to-market | | | | |
(1)Volume for derivatives designated as hedging instruments reflects the total amount of volumes hedged whereas volume for derivatives not designated as hedging instruments reflects the absolute value of derivative notional volumes. (2)The maximum term for derivatives designated as cash flow hedges, derivatives designated as fair value hedges and derivatives not designated as hedging instruments is March 2029, January 2027 and December 2028, respectively. (3)Reflects the use of derivative instruments to manage risks associated with our transportation, processing and storage assets.
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| Schedule of Derivative Assets and Liabilities Balance Sheet |
The following table provides a balance sheet overview of our derivative assets and liabilities at the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Asset Derivatives | Liability Derivatives | | September 30, 2026 | December 31, 2025 | September 30, 2026 | December 31, 2025 | | Balance
Sheet
Location | Fair
Value | Balance
Sheet
Location | Fair
Value | Balance
Sheet
Location | Fair
Value | Balance
Sheet
Location | Fair
Value | | Derivatives designated as hedging instruments | | | | | | | | | | | | | | | | | | | Commodity derivatives | Current
assets | $ | 645 | | Current
assets | $ | 403 | | Current
liabilities | $ | 610 | | Current
liabilities | $ | 312 | | | Commodity derivatives | Other assets | 36 | | Other assets | 26 | | Other liabilities | 57 | | Other liabilities | 13 | | | Total commodity derivatives | | 681 | | | 429 | | | 667 | | | 325 | | | Total derivatives designated as hedging instruments | | $ | 681 | | | $ | 429 | | | $ | 667 | | | $ | 325 | | | | | | | | | | | | Derivatives not designated as hedging instruments | | | | | | | | | | Commodity derivatives | Current
assets | $ | 76 | | Current
assets | $ | 31 | | Current
liabilities | $ | 73 | | Current
liabilities | $ | 35 | | | Commodity derivatives | Other assets | 3 | | Other assets | – | | Other liabilities | 8 | | Other liabilities | 3 | | | Total commodity derivatives | | 79 | | | 31 | | | 81 | | | 38 | | | Total derivatives not designated as hedging instruments | | $ | 79 | | | $ | 31 | | | $ | 81 | | | $ | 38 | |
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| Schedule of Offsetting Financial Assets |
The following tables present our derivative instruments subject to such arrangements at the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Offsetting of Financial Assets and Derivative Assets | | Gross
Amounts of
Recognized
Assets | | Gross
Amounts
Offset in the
Balance Sheet | | Amounts
of Assets
Presented
in the
Balance Sheet | | Gross Amounts Not Offset
in the Balance Sheet | | Amounts That
Would Have
Been Presented
On Net Basis | | | | | Financial
Instruments | | Cash
Collateral
Received | | Cash
Collateral
Paid | | | (i) | | (ii) | | (iii) = (i) – (ii) | | (iv) | | (v) = (iii) + (iv) | | As of September 30, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commodity derivatives | $ | 760 | | | $ | – | | | $ | 760 | | | $ | (748) | | | $ | – | | | $ | (10) | | | $ | 2 | | | As of December 31, 2025: | | | | | | | | | | | | | | | Commodity derivatives | $ | 460 | | | $ | – | | | $ | 460 | | | $ | (362) | | | $ | (98) | | | $ | – | | | $ | – | |
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| Schedule of Offsetting Financial Liabilities |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Offsetting of Financial Liabilities and Derivative Liabilities | | Gross
Amounts of
Recognized
Liabilities | | Gross
Amounts
Offset in the
Balance Sheet | | Amounts
of Liabilities
Presented
in the
Balance Sheet | | Gross Amounts Not Offset
in the Balance Sheet | | Amounts That
Would Have
Been Presented
On Net Basis | | | | | Financial
Instruments | | Cash
Collateral
Received | | Cash
Collateral
Paid | | | (i) | | (ii) | | (iii) = (i) – (ii) | | (iv) | | (v) = (iii) + (iv) | | As of September 30, 2026: | | | | | | | | | | | | | | | Commodity derivatives | $ | 748 | | | $ | – | | | $ | 748 | | | $ | (748) | | | $ | – | | | $ | – | | | $ | – | | | As of December 31, 2025: | | | | | | | | | | | | | | | Commodity derivatives | $ | 363 | | | $ | – | | | $ | 363 | | | $ | (362) | | | $ | – | | | $ | – | | | $ | 1 | |
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| Schedule of Derivative Instruments Effects on Statements of Operations |
The following tables present the effect of our derivative instruments designated as fair value hedges on our Unaudited Condensed Statements of Consolidated Operations for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives in Fair Value
Hedging Relationships | Location | Gain (Loss) Recognized in
Income on Derivative | | | For the Three Months
Ended September 30, | | For the Nine Months
Ended September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | Commodity derivatives | Revenue | $ | 1 | | | $ | – | | | $ | (2) | | | $ | 4 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives in Fair Value
Hedging Relationships | Location | Gain (Loss) Recognized in
Income on Hedged Item | | | For the Three Months
Ended September 30, | | For the Nine Months
Ended September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | Commodity derivatives | Revenue | $ | – | | | $ | (2) | | | $ | 11 | | | $ | (4) | | | | | | | | | | | | | | |
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| Schedule of Derivative Instruments Effects on Statements of Comprehensive Income |
The following tables present the effect of our derivative instruments designated as cash flow hedges on our Unaudited Condensed Statements of Consolidated Operations and Unaudited Condensed Statements of Consolidated Comprehensive Income for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives in Cash Flow
Hedging Relationships | Change in Value Recognized in Other Comprehensive Income (Loss) on Derivative | | For the Three Months
Ended September 30, | | For the Nine Months
Ended September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | | | Interest rate derivatives | $ | – | | | $ | – | | | $ | – | | | $ | 14 | | | | | Commodity derivatives – Revenue (1) | (241) | | | 77 | | | (492) | | | 114 | | | | | Commodity derivatives – Operating costs and expenses (1) | (6) | | | (12) | | | (56) | | | (27) | | | | | Total | $ | (247) | | | $ | 65 | | | $ | (548) | | | $ | 101 | | | | | | | | | | | | | |
(1)The fair value of these derivative instruments will be reclassified to their respective locations on the Unaudited Condensed Statement of Consolidated Operations when the forecasted transactions affect earnings.
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| Schedule of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Income/(Loss) to Income |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives in Cash Flow
Hedging Relationships | Location | Gain (Loss) Reclassified from
Accumulated Other Comprehensive Income (Loss) to Income | | | For the Three Months
Ended September 30, | | For the Nine Months
Ended September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | Interest rate derivatives | Interest expense | $ | 1 | | | $ | 2 | | | $ | 5 | | | $ | 5 | | | | | Commodity derivatives | Revenue | (22) | | | 47 | | | (144) | | | 100 | | | | | Commodity derivatives | Operating costs and expenses | (9) | | | (12) | | | (30) | | | (32) | | | | | Total | | $ | (30) | | | $ | 37 | | | $ | (169) | | | $ | 73 | | | |
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| Schedule of Gain/(Loss) Recognized in Income on Derivative |
The following table presents the effect of our derivative instruments not designated as hedging instruments on our Unaudited Condensed Statements of Consolidated Operations for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives Not Designated
as Hedging Instruments | Location | Gain (Loss) Recognized in
Income on Derivative | | | For the Three Months
Ended September 30, | | For the Nine Months
Ended September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | Commodity derivatives | Revenue | $ | 49 | | | $ | (17) | | | $ | 8 | | | $ | 30 | | | | | Commodity derivatives | Operating costs and expenses | (6) | | | (5) | | | (9) | | | (4) | | | | | Total | | $ | 43 | | | $ | (22) | | | $ | (1) | | | $ | 26 | | | |
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| Schedule of Fair Value Measurements of Financial Assets and Liabilities Measured on a Recurring Basis |
The following tables set forth, by level within the Level 1, 2 and 3 fair value hierarchy, the carrying values of our financial assets and liabilities at the dates indicated. These assets and liabilities are measured on a recurring basis and are classified based on the lowest level of input used to estimate their fair value. Our assessment of the relative significance of such inputs requires judgment. The values for commodity derivatives are presented before and after the application of CME Rule 814, which deems that financial instruments cleared by the CME are settled daily in connection with variation margin payments. As a result of this exchange rule, CME-related derivatives are considered to have no fair value at the balance sheet date for financial reporting purposes; however, the derivatives remain outstanding and subject to future commodity price fluctuations until they are settled in accordance with their contractual terms. Derivative transactions cleared on exchanges other than the CME (e.g., the Intercontinental Exchange or ICE) continue to be reported on a gross basis. | | | | | | | | | | | | | | | | | | | | | | | | | At September 30, 2026
Fair Value Measurements Using | | | | Quoted Prices
in Active
Markets for
Identical Assets
and Liabilities
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Total | | Financial assets: | | | | | | | | | | | | | | | | | Commodity derivatives: | | | | | | | | | Value before application of CME Rule 814 | $ | 187 | | | $ | 1,439 | | | $ | – | | | $ | 1,626 | | | Impact of CME Rule 814 | (121) | | | (745) | | | – | | | (866) | | | Total commodity derivatives | 66 | | | 694 | | | – | | | 760 | | | Total | $ | 66 | | | $ | 694 | | | $ | – | | | $ | 760 | | | | | | | | | | | Financial liabilities: | | | | | | | | | Commodity derivatives: | | | | | | | | | Value before application of CME Rule 814 | $ | 540 | | | $ | 1,264 | | | $ | – | | | $ | 1,804 | | | Impact of CME Rule 814 | (487) | | | (569) | | | – | | | (1,056) | | | Total commodity derivatives | 53 | | | 695 | | | – | | | 748 | | | Total | $ | 53 | | | $ | 695 | | | $ | – | | | $ | 748 | |
| | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2025
Fair Value Measurements Using | | | | Quoted Prices
in Active
Markets for
Identical Assets
and Liabilities
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Total | | Financial assets: | | | | | | | | | Commodity derivatives: | | | | | | | | | Value before application of CME Rule 814 | $ | 172 | | | $ | 777 | | | $ | – | | | $ | 949 | | | Impact of CME Rule 814 | (170) | | | (319) | | | – | | | (489) | | | Total commodity derivatives | 2 | | | 458 | | | – | | | 460 | | | Total | $ | 2 | | | $ | 458 | | | $ | – | | | $ | 460 | | | | | | | | | | | Financial liabilities: | | | | | | | | | Commodity derivatives: | | | | | | | | | Value before application of CME Rule 814 | $ | 32 | | | $ | 710 | | | $ | – | | | $ | 742 | | | Impact of CME Rule 814 | (31) | | | (348) | | | – | | | (379) | | | Total commodity derivatives | 1 | | | 362 | | | – | | | 363 | | | Total | $ | 1 | | | $ | 362 | | | $ | – | | | $ | 363 | |
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