Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 22, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-13643 | ||
Entity Registrant Name | ONEOK, Inc. | ||
Entity Incorporation, State or Country Code | OK | ||
Entity Tax Identification Number | 73-1520922 | ||
Entity Address, Address Line One | 100 West Fifth Street, | ||
Entity Address, City or Town | Tulsa, | ||
Entity Address, State or Province | OK | ||
Entity Address, Postal Zip Code | 74103 | ||
City Area Code | 918 | ||
Local Phone Number | 588-7000 | ||
Title of 12(b) Security | Common stock, par value of $0.01 | ||
Trading Symbol | OKE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 24.4 | ||
Entity Common Stock, Shares Outstanding | 446,213,285 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement to be delivered to shareholders in connection with the Annual Meeting of Shareholders to be held May 25, 2022, are incorporated by reference in Part III. | ||
Entity Central Index Key | 0001039684 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Tulsa, Oklahoma |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Revenues | $ 16,540,309 | $ 8,542,242 | $ 10,164,367 |
Cost of sales and fuel (exclusive of items shown separately below) | 12,256,655 | 5,110,146 | 6,788,040 |
Operations and maintenance | 900,420 | 761,176 | 863,708 |
Depreciation and amortization | 621,701 | 578,662 | 476,535 |
Impairment charges (Note D and E) | 0 | 607,200 | 0 |
General taxes | 166,668 | 125,028 | 119,156 |
(Gain) loss on sale of assets | (1,394) | (1,327) | 2,575 |
Operating income | 2,596,259 | 1,361,357 | 1,914,353 |
Equity in net earnings from investments (Note M) | 122,520 | 143,241 | 154,541 |
Impairment of equity investments (Note M) | 0 | (37,730) | 0 |
Allowance for equity funds used during construction | 1,682 | 23,662 | 64,815 |
Other income (expense) | (3,333) | 24,672 | 9,055 |
Interest expense (net of capitalized interest of $25,150, $75,436 and $107,275, respectively) | (732,924) | (712,886) | (491,773) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 1,984,204 | 802,316 | 1,650,991 |
Income taxes (Note L) | (484,498) | (189,507) | (372,414) |
Net income | 1,499,706 | 612,809 | 1,278,577 |
Less: Preferred stock dividends | 1,100 | 1,100 | 1,100 |
Net income available to common shareholders | $ 1,498,606 | $ 611,709 | $ 1,277,477 |
Basic earnings per common share (Note I) | $ 3.36 | $ 1.42 | $ 3.09 |
Diluted earnings per common share (Note I) | $ 3.35 | $ 1.42 | $ 3.07 |
Average shares (thousands) | |||
Basic | 446,403 | 431,105 | 413,560 |
Diluted | 447,403 | 431,782 | 415,444 |
Commodity Sales | |||
Revenues | |||
Revenues | $ 15,180,264 | $ 7,255,259 | $ 8,916,047 |
Services | |||
Revenues | |||
Revenues | $ 1,360,045 | $ 1,286,983 | $ 1,248,320 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME CONSOLIDATED STATEMENT OF INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Interest expense (net of capitalized interest) | $ 25,150 | $ 75,436 | $ 107,275 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income | $ 1,499,706 | $ 612,809 | $ 1,278,577 |
Other comprehensive income (loss), net of tax | |||
Change in fair value of derivatives, net of tax of $60,896, $49,292 and $44,149, respectively | (203,868) | (165,023) | (147,803) |
Derivative amounts reclassified to net income, net of tax of $(69,134), $(6,313) and $6,058, respectively | 228,999 | 21,097 | (21,057) |
Change in retirement and other postretirement benefit plan obligations, net of tax of $(14,929), $7,812 and $2,910, respectively | 49,976 | (26,154) | (9,696) |
Other comprehensive income (loss) of unconsolidated affiliates, net of tax of $(1,490), $2,201 and $2,152, respectively | 4,991 | (7,369) | (7,205) |
Total other comprehensive income (loss), net of tax | 80,098 | (177,449) | (185,761) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total | $ 1,579,804 | $ 435,360 | $ 1,092,816 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in fair value of derivatives, tax | $ 60,896 | $ 49,292 | $ 44,149 |
Derivative amounts reclassified to net income, tax | (69,134) | (6,313) | 6,058 |
Change in retirement and other postretirement benefit plan obligations, tax | (14,929) | 7,812 | 2,910 |
Other comprehensive income (loss) of unconsolidated affiliates, tax | $ (1,490) | $ 2,201 | $ 2,152 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 146,391 | $ 524,496 |
Accounts receivable, net | 1,441,786 | 829,796 |
Materials and supplies | 153,019 | 143,178 |
NGLs and natural gas in storage | 427,880 | 227,810 |
Commodity imbalances | 39,609 | 11,959 |
Other current assets | 165,689 | 132,536 |
Total current assets | 2,374,374 | 1,869,775 |
Property, plant and equipment | ||
Property, plant and equipment | 23,820,539 | 23,072,935 |
Accumulated depreciation and amortization | 4,500,665 | 3,918,007 |
Net property, plant and equipment (Note D) | 19,319,874 | 19,154,928 |
Investments and other assets | ||
Investments in unconsolidated affiliates (Note M) | 797,613 | 805,032 |
Goodwill and net intangible assets (Note E) | 763,295 | 773,723 |
Other assets | 366,457 | 475,296 |
Total investments and other assets | 1,927,365 | 2,054,051 |
Total assets | 23,621,613 | 23,078,754 |
Current liabilities | ||
Current maturities of long-term debt (Note F) | 895,814 | 7,650 |
Accounts payable | 1,332,391 | 719,302 |
Commodity imbalances | 309,054 | 186,372 |
Accrued taxes | 97,537 | 89,428 |
Accrued interest | 235,602 | 245,153 |
Operating lease liability, current (Note O) | 13,783 | 13,610 |
Other current liabilities | 300,438 | 83,032 |
Total current liabilities | 3,184,619 | 1,344,547 |
Long-term debt, excluding current maturities (Note F) | 12,747,636 | 14,228,421 |
Deferred credits and other liabilities | ||
Deferred income taxes (Note L) | 1,166,690 | 669,697 |
Operating lease liability, noncurrent (Note O) | 75,636 | 87,610 |
Other deferred credits | 431,869 | 706,081 |
Total deferred credits and other liabilities | 1,674,195 | 1,463,388 |
Commitments and contingencies (Note N) | ||
Equity (Note G) | ||
Preferred stock, $0.01 par value: authorized and issued 20,000 shares at December 31, 2021, and at December 31, 2020 | 0 | 0 |
Common stock, $0.01 par value: authorized 1,200,000,000 shares; issued 474,916,234 shares and outstanding 446,138,177 shares at December 31, 2021; issued 474,916,234 shares and outstanding 444,872,383 shares at December 31, 2020 | 4,749 | 4,749 |
Paid-in capital | 7,213,861 | 7,353,396 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (471,351) | (551,449) |
Retained earnings | 0 | 0 |
Treasury stock, at cost: 28,778,057 shares at December 31, 2021, and 30,043,851 shares at December 31, 2020 | (732,096) | (764,298) |
Total equity | 6,015,163 | 6,042,398 |
Total liabilities and equity | $ 23,621,613 | $ 23,078,754 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Equity (Note G) | ||
Preferred stock, shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares, authorized (in shares) | 20,000 | 20,000 |
Preferred stock, shares, issued (in shares) | 20,000 | 20,000 |
Common stock, shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares, authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Common stock, shares, issued (in shares) | 474,916,234 | 474,916,234 |
Common stock, shares, outstanding (in shares) | 446,138,177 | 444,872,383 |
Treasury stock, shares (in shares) | 28,778,057 | 30,043,851 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Net income | $ 1,499,706 | $ 612,809 | $ 1,278,577 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 621,701 | 578,662 | 476,535 |
Impairment charges | 0 | 644,930 | 0 |
Equity in net earnings from investments | (122,520) | (143,241) | (154,541) |
Distributions received from unconsolidated affiliates | 123,010 | 144,352 | 163,476 |
Deferred income tax expense | 472,057 | 186,730 | 372,729 |
Other, net | 94,091 | 35,327 | (26,101) |
Changes in assets and liabilities: | |||
Accounts receivable | (610,531) | (1,297) | (19,688) |
NGLs and natural gas in storage, net of commodity imbalances | (105,038) | 172,316 | (10,193) |
Accounts payable | 622,425 | (80,257) | (62,946) |
Risk-management assets and liabilities | (93,713) | (187,458) | (86,268) |
Other assets and liabilities, net | 45,084 | (63,805) | 15,199 |
Cash provided by operating activities | 2,546,272 | 1,899,068 | 1,946,779 |
Investing activities | |||
Capital expenditures (less allowance for equity funds used during construction) | (696,854) | (2,195,381) | (3,848,349) |
Distributions received from unconsolidated affiliates in excess of cumulative earnings | 19,363 | 31,808 | 94,168 |
Other, net | 12,199 | (106,956) | (14,577) |
Cash used in investing activities | (665,292) | (2,270,529) | (3,768,758) |
Financing activities | |||
Dividends paid | (1,667,431) | (1,605,366) | (1,457,628) |
Borrowing (repayment) of short-term borrowings, net | 0 | (220,000) | 220,000 |
Issuance of long-term debt, net of discounts | 0 | 3,244,777 | 4,185,435 |
Repayment of long-term debt | (604,894) | (1,457,222) | (1,057,348) |
Issuance of common stock | 32,791 | 969,759 | 29,040 |
Other | (19,551) | (56,949) | (88,537) |
Cash provided by (used in) financing activities | (2,259,085) | 874,999 | 1,830,962 |
Change in cash and cash equivalents | (378,105) | 503,538 | 8,983 |
Cash and cash equivalents at beginning of period | 524,496 | 20,958 | 11,975 |
Cash and cash equivalents at end of period | 146,391 | 524,496 | 20,958 |
Supplemental cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 691,897 | 760,984 | 435,165 |
Cash paid for income taxes, net of refunds | $ 8,864 | $ 342 | $ 2,690 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Cumulative Effect adjustment for adoption of ASU 2016-02, "Leases (Topic 842)" | Cumulative Effect adjustment for adoption of ASU 2016-02, "Leases (Topic 842)"Preferred Stock | Cumulative Effect adjustment for adoption of ASU 2016-02, "Leases (Topic 842)"Common Stock | Cumulative Effect adjustment for adoption of ASU 2016-02, "Leases (Topic 842)"Paid-in Capital | Cumulative Effect adjustment for adoption of ASU 2016-02, "Leases (Topic 842)"Accumulated Other Comprehensive Loss | Cumulative Effect adjustment for adoption of ASU 2016-02, "Leases (Topic 842)"Retained Earnings | Cumulative Effect adjustment for adoption of ASU 2016-02, "Leases (Topic 842)"Treasury Stock |
Shares, issued, beginning balance at Dec. 31, 2018 | 20,000 | 445,016,234 | ||||||||||||
Total equity, beginning balance at Dec. 31, 2018 | $ 6,579,543 | $ 0 | $ 4,450 | $ 7,615,138 | $ (188,239) | $ 0 | $ (851,806) | $ (67) | $ 0 | $ 0 | $ 0 | $ 0 | $ (67) | $ 0 |
Net income | 1,278,577 | 0 | 0 | 0 | 0 | 1,278,577 | 0 | |||||||
Other comprehensive income (loss) | $ (185,761) | 0 | 0 | 0 | (185,761) | 0 | 0 | |||||||
Preferred stock dividends paid (in dollars per share) | $ 55 | |||||||||||||
Preferred stock dividends | $ (1,100) | 0 | $ 0 | 0 | 0 | (1,100) | 0 | |||||||
Common Stock Issued During Period, Shares, Other | 0 | |||||||||||||
Common Stock Issued During Period, Value, Other | $ 35,745 | 0 | $ 0 | (7,667) | 0 | 0 | 43,412 | |||||||
Common stock dividends paid (in dollars per share) | $ 3.53 | |||||||||||||
Common Stock Dividends | $ (1,457,831) | 0 | 0 | (180,421) | 0 | (1,277,410) | 0 | |||||||
Other, net | (23,155) | $ 0 | $ 0 | (23,155) | 0 | 0 | 0 | |||||||
Shares, issued, ending balance at Dec. 31, 2019 | 20,000 | 445,016,234 | ||||||||||||
Total equity, ending balance at Dec. 31, 2019 | 6,225,951 | $ 0 | $ 4,450 | 7,403,895 | (374,000) | 0 | (808,394) | |||||||
Net income | 612,809 | 0 | 0 | 0 | 0 | 612,809 | 0 | |||||||
Other comprehensive income (loss) | $ (177,449) | 0 | 0 | 0 | (177,449) | 0 | 0 | |||||||
Preferred stock dividends paid (in dollars per share) | $ 55 | |||||||||||||
Preferred stock dividends | $ (1,100) | 0 | $ 0 | (550) | 0 | (550) | 0 | |||||||
Common Stock Issued During Period, Shares, Other | 29,900,000 | |||||||||||||
Common Stock Issued During Period, Value, Other | $ 978,868 | 0 | $ 299 | 934,473 | 0 | 0 | 44,096 | |||||||
Common stock dividends paid (in dollars per share) | $ 3.74 | |||||||||||||
Common Stock Dividends | $ (1,605,000) | 0 | 0 | (992,741) | 0 | (612,259) | 0 | |||||||
Other, net | 8,319 | $ 0 | $ 0 | 8,319 | 0 | 0 | 0 | |||||||
Shares, issued, ending balance at Dec. 31, 2020 | 20,000 | 474,916,234 | ||||||||||||
Total equity, ending balance at Dec. 31, 2020 | 6,042,398 | $ 0 | $ 4,749 | 7,353,396 | (551,449) | 0 | (764,298) | |||||||
Net income | 1,499,706 | 0 | 0 | 0 | 0 | 1,499,706 | 0 | |||||||
Other comprehensive income (loss) | $ 80,098 | 0 | 0 | 0 | 80,098 | 0 | 0 | |||||||
Preferred stock dividends paid (in dollars per share) | $ 55 | |||||||||||||
Preferred stock dividends | $ (1,100) | 0 | $ 0 | 0 | 0 | (1,100) | 0 | |||||||
Common Stock Issued During Period, Shares, Other | 0 | |||||||||||||
Common Stock Issued During Period, Value, Other | $ 38,882 | 0 | $ 0 | 6,680 | 0 | 0 | 32,202 | |||||||
Common stock dividends paid (in dollars per share) | $ 3.74 | |||||||||||||
Common Stock Dividends | $ (1,666,751) | 0 | 0 | (168,145) | 0 | (1,498,606) | 0 | |||||||
Other, net | 21,930 | $ 0 | $ 0 | 21,930 | 0 | 0 | 0 | |||||||
Shares, issued, ending balance at Dec. 31, 2021 | 20,000 | 474,916,234 | ||||||||||||
Total equity, ending balance at Dec. 31, 2021 | $ 6,015,163 | $ 0 | $ 4,749 | $ 7,213,861 | $ (471,351) | $ 0 | $ (732,096) |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Preferred stock dividends paid (in dollars per share) | $ 55 | $ 55 | $ 55 | ||||||||||||
Common stock dividends paid (in dollars per share) | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.915 | $ 0.890 | $ 0.865 | $ 0.860 | $ 3.74 | $ 3.74 | $ 3.53 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations - We are a corporation incorporated under the laws of the state of Oklahoma. Our Natural Gas Gathering and Processing segment provides midstream services to producers in North Dakota, Montana, Wyoming, Kansas and Oklahoma. Raw natural gas is typically gathered at the wellhead, compressed and transported through pipelines to our processing facilities. Processed natural gas, usually referred to as residue natural gas, is then recompressed and delivered to natural gas pipelines, storage facilities and end users. The NGLs separated from the raw natural gas are sold and delivered through NGL pipelines to fractionation facilities for further processing. Our Natural Gas Liquids segment owns and operates facilities that gather, fractionate, treat and distribute NGLs and store NGL products, primarily in Oklahoma, Kansas, Texas, New Mexico and the Rocky Mountain region, which includes the Williston, Powder River and DJ Basins. We provide midstream services to producers of NGLs and deliver those products to the two primary market centers, one in the Mid-Continent in Conway, Kansas, and the other in the Gulf Coast in Mont Belvieu, Texas. We own or have an ownership interest in FERC-regulated NGL gathering and distribution pipelines in Oklahoma, Kansas, Texas, New Mexico, Montana, North Dakota, Wyoming and Colorado, and terminal and storage facilities in Kansas, Missouri, Nebraska, Iowa and Illinois. We have a 50% ownership interest in Overland Pass Pipeline Company, which operates an interstate NGL pipeline originating in Wyoming and Colorado and terminating in Kansas. The majority of the pipeline-connected natural gas processing plants in the Williston Basin, Oklahoma, Kansas and the Texas Panhandle are connected to our NGL gathering systems. We lease rail cars and own and operate truck- and rail-loading and -unloading facilities connected to our NGL fractionation, storage and pipeline assets. We also own FERC-regulated NGL distribution pipelines in Kansas, Missouri, Nebraska, Iowa, Illinois and Indiana that connect our Mid-Continent assets with Midwest markets, including Chicago, Illinois. A portion of our ONEOK North System transports refined products, including unleaded gasoline and diesel, from Kansas to Iowa. Our Natural Gas Pipelines segment, through its wholly owned assets, provides intrastate and interstate natural gas transportation and storage services to end users. We have 50% ownership interests in Northern Border Pipeline and Roadrunner, which provide transportation services to various end users. Our interstate pipelines are regulated by the FERC and are located in North Dakota, Minnesota, Wisconsin, Illinois, Indiana, Kentucky, Tennessee, Oklahoma, Texas and New Mexico. Our intrastate natural gas pipeline and storage assets are located in Oklahoma, Kansas and Texas. Our assets connect major natural gas producing basins and market hubs with end-use customers. Consolidation - Our Consolidated Financial Statements include our accounts and the accounts of our subsidiaries over which we have control or are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Investments in unconsolidated affiliates are accounted for using the equity method if we have the ability to exercise significant influence over operating and financial policies of our investee. Under this method, an investment is carried at its acquisition cost and adjusted each period for contributions made, distributions received and our share of the investee’s comprehensive income. For the investments we account for under the equity method, the premium or excess cost over underlying fair value of net assets is referred to as equity-method goodwill. Impairment of equity investments is recorded when the impairments are other than temporary. These amounts are recorded as investments in unconsolidated affiliates on our accompanying Consolidated Balance Sheets. See Note M for disclosures of our unconsolidated affiliates. Distributions paid to us from our unconsolidated affiliates are classified as operating activities on our Consolidated Statements of Cash Flows until the cumulative distributions exceed our proportionate share of income from the unconsolidated affiliate since the date of our initial investment. The amount of cumulative distributions paid to us that exceeds our cumulative proportionate share of income in each period represents a return of investment and is classified as an investing activity on our Consolidated Statements of Cash Flows. Use of Estimates - The preparation of our Consolidated Financial Statements and related disclosures in accordance with GAAP requires us to make estimates and assumptions with respect to values or conditions that cannot be known with certainty that affect the reported amounts on our Consolidated Financial Statements. Items that may be estimated include, but are not limited to, the economic useful life of assets, fair value of assets, liabilities and equity-method investments, obligations under employee benefit plans, provisions for uncollectible accounts receivable, expenses for services received but for which no invoice has been received, provision for income taxes, including any deferred tax valuation allowances, the results of litigation and various other recorded or disclosed amounts. In addition, a portion of our revenues and cost of sales and fuel are recorded based on current month prices and estimated volumes. The estimates are reversed in the following month when we record actual volumes. We evaluate our estimates on an ongoing basis using historical experience, consultation with experts and other methods we consider reasonable based on the particular circumstances. Nevertheless, actual results may differ significantly from the estimates. Any effects on our financial position or results of operations from revisions to these estimates are recorded in the period when the facts that give rise to the revision become known. Fair Value Measurements - For our fair value measurements, we utilize market prices, third-party pricing services, present value methods and standard option valuation models to determine the price we would receive from the sale of an asset or the transfer of a liability in an orderly transaction at the measurement date. We measure the fair value of a group of financial assets and liabilities consistent with how a market participant would price the net risk exposure at the measurement date. Many of the contracts in our derivative portfolio are executed in liquid markets where price transparency exists. Our financial commodity derivatives are generally settled through a NYMEX or ICE clearing broker account with daily margin requirements. We validate our valuation inputs with third-party information and settlement prices from other sources, where available. We compute the fair value of our derivative portfolio by discounting the projected future cash flows from our derivative assets and liabilities to present value using interest-rate yields to calculate present-value discount factors derived from the implied forward SOFR, LIBOR or other yield curve, as appropriate. The fair value of our forward-starting interest-rate swaps is determined using financial models that incorporate the implied forward LIBOR yield curve for the same period as the future interest-rate swap settlements. We consider current market data in evaluating counterparties’, as well as our own, nonperformance risk, net of collateral, by using counterparty-specific bond yields. Although we use our best estimates to determine the fair value of the derivative contracts we have executed, the ultimate market prices realized could differ materially from our estimates. Fair Value Hierarchy - At each balance sheet date, we utilize a fair value hierarchy to classify fair value amounts recognized or disclosed in our financial statements based on the observability of inputs used to estimate such fair value. The levels of the hierarchy are described below: • Level 1 - fair value measurements are based on unadjusted quoted prices for identical securities in active markets. These balances are composed predominantly of exchange-traded derivative contracts for natural gas and crude oil. • Level 2 - fair value measurements are based on significant observable pricing inputs, including quoted prices for similar assets and liabilities in active markets and inputs from third-party pricing services supported with corroborative evidence. These balances are composed of exchange cleared derivatives to hedge natural gas basis and NGL price risk at certain market locations and over-the-counter interest-rate derivatives. • Level 3 - fair value measurements are based on inputs that may include one or more unobservable inputs, including internally developed commodity price curves that incorporate market data from broker quotes and third-party pricing services. These balances are composed predominantly of exchange-cleared and over-the-counter derivatives to hedge NGL price risk at certain market locations. These commodity derivatives are generally valued using forward quotes provided by third-party pricing services that are validated with other market data. We believe any measurement uncertainty at December 31, 2021, is immaterial as our Level 3 fair value measurements are based on unadjusted pricing information from broker quotes and third-party pricing services. Determining the appropriate classification of our fair value measurements within the fair value hierarchy requires management’s judgment regarding the degree to which market data is observable or corroborated by observable market data. We categorize derivatives based on the lowest level input that is significant to the fair value measurement in its entirety. See Note B for our fair value measurements disclosures. Cash and Cash Equivalents - Cash equivalents consist of highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. Revenue Recognition - Revenues are recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. Our payment terms vary by customer and contract type, including requiring payment before products or services are delivered to certain customers. However, the term between customer prepayments, completion of our performance obligations, invoicing and receipt of payment due is not significant. Performance Obligations and Revenue Sources - Revenue sources are disaggregated in Note Q and are derived from commodity sales and services revenues, as described below: Commodity Sales (all segments) - We contract to deliver residue natural gas, condensate, unfractionated NGLs and/or NGL products to customers at a specified delivery point. Our sales agreements may be daily or longer-term contracts for a specified volume. We consider the sale and delivery of each unit of a commodity an individual performance obligation as the customer is expected to control, accept and benefit from each unit individually. We record revenue when the commodity is delivered to the customer as this represents the point in time when control of the product is transferred to the customer. Revenue is recorded based on the contracted selling price, which is generally index-based and settled monthly. Services Gathering only contracts ( Natural Gas Gathering and Processing segment ) - Under this type of contract, we charge fees for providing midstream services, which include gathering and treating our customer’s natural gas. Our performance obligation begins with delivery of raw natural gas to our system. This service is treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. Fee with POP contracts with producer take-in-kind rights ( Natural Gas Gathering and Processing segment ) - Under this type of contract, we do not control the stream of unprocessed natural gas that we receive at the wellhead due to the producer’s take-in-kind rights. We purchase a portion of the raw natural gas stream, charge fees for providing midstream services, which include gathering, treating, compressing and processing our customer’s natural gas. After performing these services, we return primarily the residue natural gas to the producer, sell the remaining commodities and remit a portion of the commodity sales proceeds to the producer less our contractual fees. Our performance obligation begins with delivery of raw natural gas to our system. This service is treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. Transportation and exchange contracts ( Natural Gas Liquids segment ) - Under this type of contract, we charge fees for providing midstream services, which may include a bundled combination of gathering, transporting and/or fractionation of our customer’s NGLs. Our performance obligation begins with delivery of unfractionated NGLs or NGL products to our system. These services represent a series of distinct services that are treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. For transportation services under a tariff on our NGL transportation pipelines, fees are recorded upon redelivery to our customer at the completion of the transportation services. Storage contracts ( Natural Gas Liquids and Natural Gas Pipelines segments ) - We reserve a stated storage capacity and inject/withdraw/store commodities for our customer. The capacity reservation and injection/withdrawal/storage services are considered a bundled service, as we integrate them into one stand-ready obligation provided on a daily basis over the life of the agreement and satisfied over time. Fixed capacity reservation fees are allocated and evenly recognized in revenue. Capacity reservation fees that vary based on a stated or implied economic index and correspond with the costs to provide our services are recognized in revenue as invoiced to our customers. For contracts that do not include a capacity reservation, transportation, injection and withdrawal fees are recognized in revenue as those services are provided and are dependent on the volume transported, injected or withdrawn by our customer, which is at our customer’s discretion. We use the output method based on the passage of time to measure satisfaction of the performance obligation associated with our daily stand-ready services. Firm service transportation contracts ( Natural Gas Pipelines segment ) - We reserve a stated transportation capacity and transport commodities for our customer. The capacity reservation and transportation services are considered a bundled service, as we integrate them into one stand-ready obligation provided on a daily basis over the life of the agreement and satisfied over time. Fixed capacity reservation fees are allocated and evenly recognized in revenue. Capacity reservation fees that vary based on a stated or implied economic index and correspond with the costs to provide our services are recognized in revenue based on a daily effective fee rate. If the capacity reservation fees vary solely as a contract feature, contract assets or liabilities are recorded for the difference between the amount recorded in revenue and the amount billed to the customer. Transportation fees are recognized in revenue as those services are provided and are dependent on the volume transported by our customer, which is at our customer’s discretion. We use the output method based on the passage of time to measure satisfaction of the performance obligation associated with our daily stand-ready services. Interruptible transportation contracts ( Natural Gas Pipelines segment ) - We agree to transport natural gas on our pipelines between the customer’s nominated receipt and delivery points if capacity is available after satisfying firm transportation service obligations. The transaction price is based on the transportation fees times the volumes transported. We use the output method based on delivery of product to the customer to measure satisfaction of the performance obligation. The total consideration for delivered volumes is recorded in revenue at the time of delivery, when the customer obtains control. Many of the contract types described above contain additional fees or charges payable by customers for nonperformance (e.g., minimum volume commitments or product specifications), which are considered to be variable consideration. These fees and charges are not recorded until it is probable that a significant reversal of the associated revenue will not occur. See Note P for our revenue disclosures. Contract Assets and Contract Liabilities - Contract assets and contract liabilities are recorded when the amount of revenue recognized from a contract with a customer differs from the amount billed to the customer and recorded in accounts receivable. Our contract asset balances at the beginning and end of the period primarily relate to our firm service transportation contracts with tiered rates. Our contract liabilities primarily represent deferred revenue on NGL storage contracts for which revenue is recognized over a one-year term, and deferred revenue on contributions in aid of construction received from customers for which revenue is recognized over the contract periods, which range from 5 to 10 years. Cost of Sales and Fuel - Cost of sales and fuel primarily includes (i) the cost of purchased commodities, including NGLs, natural gas and condensate, (ii) fees incurred for third-party transportation, fractionation and storage of commodities, (iii) fuel and power costs incurred to operate our own facilities that gather, process, transport and store commodities, and (iv) an offset from the contractual fees deducted from the cost of purchased commodities under the contract types below: Fee with POP contracts with no producer take-in-kind rights (Natural Gas Gathering and Processing segment ) - We purchase raw natural gas and charge contractual fees for providing midstream services, which include gathering, treating, compressing and processing the producer’s natural gas. After performing these services, we sell the commodities and return a portion of the commodity sales proceeds to the producer less our contractual fees. Purchase with fee ( Natural Gas Liquids segment ) - Under this type of contract, we purchase raw, unfractionated NGLs at an index price and charge fees for providing midstream services, which may include a bundled combination of gathering, transporting and/or fractionation of our customer’s NGLs. Operations and Maintenance - Operations and maintenance primarily includes (i) payroll and benefit costs, (ii) third-party costs for operations, maintenance and integrity management, regulatory compliance and environmental and safety, and (iii) other business-related service costs. Accounts Receivable - Accounts receivable represent valid claims against nonaffiliated customers for products sold or services rendered. We present accounts receivable net of an allowance for credit losses to reflect the net amount expected to be collected. We assess the creditworthiness of our counterparties on an ongoing basis and require security, including prepayments and other forms of collateral, when appropriate. Outstanding customer receivables are reviewed regularly for possible nonpayment indicators, and allowances for credit losses are recorded based upon management’s estimate of collectability, current conditions and supportable forecasts at each balance sheet date. At December 31, 2021, our allowance for credit losses was not material. Inventory - The values of current NGLs and natural gas in storage are determined using the lower of weighted-average cost or net realizable value. Noncurrent NGLs and natural gas are classified as property and valued at cost. Materials and supplies are valued at average cost. Certain large equipment inventory, which will ultimately be included in property, plant and equipment when utilized, is included in other assets in our Consolidated Balance Sheets and is valued at weighted-average cost. Commodity Imbalances - Commodity imbalances represent amounts payable or receivable for NGL exchange contracts and natural gas pipeline imbalances and are valued at market prices. Under the majority of our NGL exchange agreements, we physically receive volumes of unfractionated NGLs, including the risk of loss and legal title to such volumes, from the exchange counterparty. In turn, we deliver NGL products back to the customer and charge them gathering, transportation and fractionation fees. To the extent that the volumes we receive under such agreements differ from those we deliver, we record a net exchange receivable or payable position with the counterparties. These net exchange receivables and payables are generally settled with movements of NGL products rather than with cash. Natural gas pipeline imbalances are settled in cash or in-kind, subject to the terms of the pipelines’ tariffs or by agreement. Derivatives and Risk Management - We utilize derivatives to reduce our market-risk exposure to commodity price and interest-rate fluctuations and to achieve more predictable cash flows. We record all derivative instruments at fair value, with the exception of normal purchases and normal sales transactions that are expected to result in physical delivery. Commodity price and interest-rate volatility may have a significant impact on the fair value of derivative instruments as of a given date. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. The table below summarizes the various ways in which we account for our derivative instruments and the impact on our Consolidated Financial Statements: Recognition and Measurement Accounting Treatment Balance Sheet Income Statement Normal purchases and - Fair value not recorded - Change in fair value not recognized in earnings Mark-to-market - Recorded at fair value - Change in fair value recognized in earnings Cash flow hedge - Recorded at fair value. The gain or loss on the - The gain or loss on the derivative instrument is reclassified out of accumulated other comprehensive income (loss) into earnings when the forecasted transaction affects earnings Fair value hedge - Recorded at fair value - The gain or loss on the derivative instrument is - Change in fair value of the hedged item is - Change in fair value of the hedged item is To reduce our exposure to fluctuations in natural gas, NGLs and condensate prices, we periodically enter into futures, forward purchases and sales, options or swap transactions in order to hedge anticipated purchases and sales of natural gas, NGLs and condensate. Interest-rate swaps are used from time to time to manage interest-rate risk. Under certain conditions, we designate our derivative instruments as a hedge of exposure to changes in fair values or cash flows. We formally document all relationships between hedging instruments and hedged items, as well as risk-management objectives and strategies for undertaking various hedge transactions, and methods for assessing and testing correlation and hedge effectiveness. We specifically identify the forecasted transaction that has been designated as the hedged item in a cash flow hedge relationship. We assess hedging relationships at the inception of the hedge and on an ongoing basis to determine whether the hedging relationship is, and is expected to remain, highly effective. We also document our normal purchases and normal sales transactions that we expect to result in physical delivery and that we elect to exempt from derivative accounting treatment. The realized revenues and purchase costs of our derivative instruments not considered held for trading purposes and derivatives that qualify as normal purchases or normal sales that are expected to result in physical delivery are reported on a gross basis. Cash flows from futures, forwards, options and swaps that are accounted for as hedges are included in the same category as the cash flows from the related hedged items in our Consolidated Statements of Cash Flows. See Notes B and C for disclosures of our fair value measurements and risk-management and hedging activities, respectively. Property, Plant and Equipment - Our properties are stated at cost, including AFUDC and capitalized interest. In some cases, the cost of regulated property retired or sold, plus removal costs, less salvage, is charged to accumulated depreciation. Gains and losses from sales or transfers of nonregulated properties or an entire operating unit or system of our regulated properties are recognized in income. Maintenance and repairs are charged directly to expense. The interest portion of AFUDC and capitalized interest represent the cost of borrowed funds used to finance construction activities for regulated and nonregulated projects, respectively. We capitalize interest costs during the construction or upgrade of qualifying assets. These costs are recorded as a reduction to interest expense. The equity portion of AFUDC represents the capitalization of the estimated average cost of equity used during the construction of major projects and is recorded in the cost of our regulated properties and as a credit to the allowance for equity funds used during construction. Our properties are depreciated using the straight-line method over their estimated useful lives. Generally, we apply depreciation rates to functional groups of property having similar economic lives. We periodically conduct depreciation studies to assess the economic lives of our assets. For our regulated assets, these depreciation studies are completed as a part of our rate proceedings or tariff filings, and the changes in economic lives, if applicable, are implemented prospectively when the new rates are approved. For our nonregulated assets, if it is determined that the estimated economic life changes, the changes are made prospectively. Changes in the estimated economic lives of our property, plant and equipment could have a material effect on our financial position or results of operations. Property, plant and equipment on our Consolidated Balance Sheets includes construction work in process for capital projects that have not yet been placed in service and therefore are not being depreciated. Assets are transferred out of construction work in process when they are substantially complete and ready for their intended use. See Note D for our property, plant and equipment disclosures. Impairment of Goodwill and Long-Lived Assets, Including Intangible Assets - We assess our goodwill for impairment at least annually as of July 1, unless events or changes in circumstances indicate an impairment may have occurred before that time. Our qualitative goodwill impairment analysis performed as of July 1, 2021, did not result in an impairment charge nor did our analysis reflect any reporting units at risk, and subsequent to that date, no event has occurred indicating that the implied fair value of each of our reporting units is less than the carrying value of its net assets. Goodwill - As part of our goodwill impairment test, we assess qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors and overall financial performance) to determine whether it was more likely than not that the fair value of each of our reporting units was less than their carrying amount. If further testing is necessary or a quantitative test is elected, we perform a Step 1 analysis. In a Step 1 analysis, an assessment is made by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying value of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. To estimate the fair value of our reporting units, we use two generally accepted valuation approaches, an income approach and a market approach, using assumptions consistent with a market participant’s perspective. Under the income approach, we use anticipated cash flows over a period of years plus a terminal value and discount these amounts to their present value using appropriate discount rates. Under the market approach, we apply EBITDA multiples to forecasted EBITDA. The multiples used are consistent with recent market transactions. The forecasted cash flows are based on probability weighted-average possible future cash flows for a reporting unit over a period of years. Long-lived assets - We assess our long-lived assets for impairment whenever events or changes in circumstances indicate that an asset’s carrying amount may not be recoverable. An impairment is indicated if the carrying amount of a long-lived asset exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If an impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. Investments in unconsolidated affiliates - The impairment test for equity-method investments considers whether the fair value of the equity investment as a whole, not the underlying net assets, has declined and whether that decline is other than temporary. Therefore, we periodically evaluate the amount at which we carry our equity-method investments to determine whether current events or circumstances warrant adjustments to our carrying values. See Notes D, E and M for our disclosures and related impairment charges related to long-lived assets, goodwill and intangible assets and investments in unconsolidated affiliates, respectively. Regulation - Depending on the specific service provided, our natural gas transmission pipelines, NGL pipelines and certain natural gas storage facilities are subject to rate regulation and/or accounting requirements by one or more of the FERC, OCC, KCC and RRC. Accordingly, portions of our Natural Gas Liquids and Natural Gas Pipelines segments follow the accounting and reporting guidance for regulated operations. In our Consolidated Financial Statements and our Notes to Consolidated Financial Statements, regulated operations are defined pursuant to Financial Accounting Standards Board’s (FASB) Accounting Standards Codification 980, Regulated Operations. During the rate-making process for certain of our assets, regulatory authorities set the framework for what we can charge customers for our services and establish the manner that our costs are accounted for, including allowing us to defer recognition of certain costs and permitting recovery of the amounts through rates over time as opposed to expensing such costs as incurred. Certain examples of types of regulatory guidance include costs for fuel and losses, acquisition costs, contributions in aid of construction, charges for depreciation, and gains or losses on disposition of assets. This allows us to stabilize rates over time rather than passing such costs on to the customer for immediate recovery. Actions by regulatory authorities could have an effect on the amounts we may charge our customers. Any difference in the amount recoverable and the amount deferred is recorded as income or expense at the time of the regulatory action. A write-off of regulatory assets and costs not recovered may be required if all or a portion of the regulated operations have rates that are no longer (i) established by independent, third-party regulators and (ii) set at levels that will recover our costs when considering the demand and competition for our services. Retirement and Other Postretirement Employee Benefits - We have defined benefit retirement plans covering certain employees and former employees. We sponsor welfare plans that provide postretirement medical and life insurance benefits to certain employees hired prior to 2017 who retire with at least five years of service. The expense and liabilit |
FAIR VALUE MEASUREMENTS (Notes)
FAIR VALUE MEASUREMENTS (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements - The following tables set forth our recurring fair value measurements for the periods indicated: December 31, 2021 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 22,019 $ 172,833 $ 9,309 $ 204,161 $ (204,161) $ — Total derivative assets $ 22,019 $ 172,833 $ 9,309 $ 204,161 $ (204,161) $ — Derivative liabilities Commodity contracts Financial contracts $ (67,226) $ (112,922) $ (123,592) $ (303,740) $ 303,740 $ — Interest-rate contracts — (145,524) — (145,524) — (145,524) Total derivative liabilities $ (67,226) $ (258,446) $ (123,592) $ (449,264) $ 303,740 $ (145,524) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At December 31, 2021, we held no cash and posted $157.0 million of cash with various counterparties, including $99.6 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $57.4 million of cash collateral in excess of derivative net liability positions is included in other current assets in our Consolidated Balance Sheet. December 31, 2020 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 6,697 $ — $ 103,801 $ 110,498 $ (110,498) $ — Total derivative assets $ 6,697 $ — $ 103,801 $ 110,498 $ (110,498) $ — Derivative liabilities Commodity contracts Financial contracts $ (10,489) $ — $ (135,122) $ (145,611) $ 145,611 $ — Interest-rate contracts — (203,407) — (203,407) — (203,407) Total derivative liabilities $ (10,489) $ (203,407) $ (135,122) $ (349,018) $ 145,611 $ (203,407) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At December 31, 2020, we held no cash and posted $63.1 million of cash with various counterparties, including $35.1 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $28.0 million of cash collateral in excess of derivative net liability positions is included in other current assets in our Consolidated Balance Sheet. The following table sets forth a reconciliation of our Level 3 fair value measurements for the periods indicated: Years Ended December 31, Derivative Assets (Liabilities) 2021 2020 ( Thousands of dollars ) Net assets (liabilities) at beginning of period $ (31,321) $ 30,772 Total changes in fair value: Settlements included in net income (a) 31,003 (31,660) Transfers out of Level 3 derivatives (59,911) — New Level 3 derivatives included in other comprehensive income (loss) (b) (57,325) (36,568) Unrealized change included in other comprehensive income (loss) (b) 3,271 6,135 Net liabilities at end of period $ (114,283) $ (31,321) (a) - Included in commodity sales revenues/cost of sales and fuel in our Consolidated Statements of Income. (b) - Included in change in fair value of derivatives in our Consolidated Statements of Comprehensive Income. During the year ended December 31, 2021, transfers out of Level 3 related to commodity derivatives associated with certain locations for both NGL and natural gas basis swaps were principally due to improved transparency of market prices as a result of the volume and frequency of transactions in these markets. We consider the valuation of these commodity derivatives transacted through a clearing broker and valued with an unadjusted published price from an exchange as a Level 2 valuation. Our Level 3 fair value measurements continue to include NGL derivatives in other markets valued using forward quotes provided by third-party pricing services that are validated with other unobservable market data. During the year ended December 31, 2020, there were no transfers in or out of Level 3 of the fair value hierarchy. Other Financial Instruments - The approximate fair value of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings is equal to book value due to the short-term nature of these items. Our cash and cash equivalents are composed of bank and money market accounts and are classified as Level 1. Our short-term borrowings are classified as Level 2 since the estimated fair value of the short-term borrowings can be determined using information available in the commercial paper market. We have investments at December 31, 2021, associated with our supplemental executive retirement plan and nonqualified deferred compensation plan that are carried at fair value and primarily composed of exchange-traded mutual funds classified as Level 1. The estimated fair value of our consolidated long-term debt, including current maturities, was $15.6 billion and $16.3 billion at December 31, 2021 and 2020, respectively. The book value of our consolidated long-term debt, including current maturities, was $13.6 billion and $14.2 billion at December 31, 2021 and 2020, respectively. The estimated fair value of the aggregate |
RISK MANAGEMENT AND HEDGING ACT
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES | RISK-MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES Risk-management Activities - We are sensitive to changes in natural gas, crude oil and NGL prices, principally as a result of contractual terms under which these commodities are processed, purchased and sold. We are also subject to the risk of interest-rate fluctuation in the normal course of business. We use physical-forward purchases and sales and financial derivatives to secure a certain price for a portion of our natural gas, condensate and NGL products; to reduce our exposure to commodity price and interest-rate fluctuations; and to achieve more predictable cash flows. We follow established policies and procedures to assess risk and approve, monitor and report our risk-management activities. We have not used these instruments for trading purposes. Commodity price risk - Commodity price risk refers to the risk of loss in cash flows and future earnings arising from adverse changes in the price of natural gas, NGLs and condensate. We may use the following commodity derivative instruments to reduce the near-term commodity price risk associated with a portion of the forecasted sales of these commodities: • Futures contracts - Standardized contracts to purchase or sell natural gas and crude oil for future delivery or settlement under the provisions of exchange regulations; • Forward contracts - Nonstandardized commitments between two parties to purchase or sell natural gas, crude oil or NGLs for future physical delivery. These contracts are typically nontransferable and can only be canceled with the consent of both parties; • Swaps - Exchange of one or more payments based on the value of one or more commodities. These instruments transfer the financial risk associated with a future change in value between the counterparties of the transaction, without also conveying ownership interest in the asset or liability; • Options - Contractual agreements that give the holder the right, but not the obligation, to buy or sell a fixed quantity of a commodity at a fixed price within a specified period of time. Options may either be standardized and exchange-traded or customized and nonexchange-traded; and • Collar - Combination of a purchased put option and a sold call option, which places a floor and ceiling price for commodity sales being hedged. We may also use other instruments to mitigate commodity price risk. In our Natural Gas Gathering and Processing segment, we are exposed to commodity price risk as a result of retaining a portion of the commodity sales proceeds associated with our fee with POP contracts. Under certain fee with POP contracts, our fees and POP percentage may increase or decrease if production volumes, delivery pressures or commodity prices change relative to specified thresholds. In certain commodity price environments, our contractual fees on these fee with POP contracts may decrease, which would impact the average fee rate in our Natural Gas Gathering and Processing segment. We also are exposed to basis risk between the various production and market locations where we buy and sell commodities. As part of our hedging strategy, we use the previously described commodity derivative financial instruments and physical-forward contracts to reduce the impact of price fluctuations related to natural gas, NGLs and condensate. In our Natural Gas Liquids segment, we are primarily exposed to commodity price risk resulting from the relative values of the various NGL products to each other, the value of NGLs in storage and the relative value of NGLs to natural gas. We are also exposed to location price differential risk as a result of the relative value of NGL purchases at one location and sales at another location, primarily related to our optimization and marketing business. As part of our hedging strategy, we utilize physical-forward contracts and commodity derivative financial instruments to reduce the impact of price fluctuations related to NGLs. In our Natural Gas Pipelines segment, we are primarily exposed to commodity price risk on our intrastate pipelines because they consume natural gas in operations and retain natural gas from our customers for operations or as part of our fee for services provided. When the amount consumed in operations differs from the amount provided by our customers, our pipelines must buy or sell natural gas, or store or use natural gas inventory, which can expose this segment to commodity price risk depending on the regulatory treatment for this activity. To the extent that commodity price risk in our Natural Gas Pipelines segment is not mitigated by fuel cost-recovery mechanisms, we may use physical-forward sales or purchases to reduce the impact of natural gas price fluctuations. At December 31, 2021 and 2020, there were no financial derivative instruments with respect to our natural gas pipeline operations. Interest-rate risk - We may manage interest-rate risk through the use of fixed-rate debt, floating-rate debt and interest-rate swaps. Interest-rate swaps are agreements to exchange interest payments at some future point based on specified notional amounts. In 2020, we settled $750 million of our forward-starting interest-rate swaps related to our underwritten public offerings of $1.75 billion senior unsecured notes resulting in a loss of $152.5 million, which is included in accumulated other comprehensive loss and amortized to interest expense over the term of the related debt. We also settled the remaining $1.3 billion of our interest-rate swaps used to hedge our LIBOR-based interest payments in 2020 resulting in a loss of $48.3 million. At December 31, 2021, and December 31, 2020, we had forward-starting interest-rate swaps with notional amounts totaling $1.1 billion to hedge the variability of interest payments on a portion of our forecasted debt issuances. All of our interest-rate swaps are designated as cash flow hedges. Fair Values of Derivative Instruments - See Note A for a discussion of the inputs associated with our fair value measurements. The following table sets forth the fair values of our derivative instruments presented on a gross basis for the periods indicated: December 31, 2021 December 31, 2020 Location in our Consolidated Balance Sheets Assets (Liabilities) Assets (Liabilities) ( Thousands of dollars ) Derivatives designated as hedging instruments Commodity contracts (a) Financial contracts (b) $ 204,161 $ (303,740) $ 107,461 $ (142,573) Interest-rate contracts Other current liabilities — (145,524) — — Other deferred credits — — — (203,407) Total derivatives designated as hedging instruments 204,161 (449,264) 107,461 (345,980) Derivatives not designated as hedging instruments Commodity contracts (a) Financial contracts (b) — — 3,037 (3,038) Total derivatives not designated as hedging instruments — — 3,037 (3,038) Total derivatives $ 204,161 $ (449,264) $ 110,498 $ (349,018) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. (b) - At December 31, 2021, and December 31, 2020, our derivative net liability positions under master-netting arrangements for financial contracts were fully offset by cash collateral of $99.6 million and $35.1 million, respectively. Notional Quantities for Derivative Instruments - The following table sets forth the notional quantities for derivative instruments held for the periods indicated: December 31, 2021 December 31, 2020 Contract Net Purchased/Payor Derivatives designated as hedging instruments: (a) Cash flow hedges Fixed price -Natural gas ( Bcf ) Futures (32.3) (43.3) -Crude oil and NGLs ( MMBbl ) Futures (10.0) (4.6) Basis -Natural gas ( Bcf ) Futures (30.5) (43.3) Interest-rate contracts ( Billions of dollars ) Swaps $ 1.1 $ 1.1 (a) - Notional amounts for derivatives not designated as hedging instruments are excluded from the table above due to fully offsetting notional quantities of 0.8 MMBbl for NGLs fixed priced derivative instruments at December 31, 2020. Cash Flow Hedges - The following table sets forth the unrealized change in fair value of cash flow hedges in other comprehensive income (loss) for the periods indicated: Years Ended December 31, 2021 2020 2019 ( Thousands of dollars ) Commodity contracts $ (322,648) $ (5,699) $ 38,819 Interest-rate contracts 57,884 (208,616) (230,771) Total unrealized change in fair value of cash flow hedges in other comprehensive income (loss) $ (264,764) $ (214,315) $ (191,952) The following table sets forth the effect of cash flow hedges on net income for the periods indicated: Derivatives in Cash Flow Location of Gain (Loss) Reclassified from Years Ended December 31, 2021 2020 2019 ( Thousands of dollars ) Commodity contracts Commodity sales revenues $ (731,793) $ 85,436 $ 94,547 Cost of sales and fuel 473,612 (19,170) (44,202) Interest-rate contracts (a) Interest expense (39,952) (93,676) (23,230) Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives $ (298,133) $ (27,410) $ 27,115 (a) - The year ended December 31, 2020, includes a loss of $48.3 million on the settlement of $1.3 billion of interest-rate swaps used to hedge our LIBOR-based interest payments. Credit Risk - We monitor the creditworthiness of our counterparties and compliance with policies and limits established by our Risk Oversight and Strategy Committee. We maintain credit policies with regard to our counterparties that we believe minimize overall credit risk. These policies include an evaluation of potential counterparties’ financial condition (including credit ratings, bond yields and credit default swap rates), collateral requirements under certain circumstances and the use of standardized master-netting agreements that allow us to net the positive and negative exposures associated with a single counterparty. We use internally developed credit ratings for counterparties that do not have a credit rating. Our financial commodity derivatives are generally settled through a NYMEX or ICE clearing broker account with daily margin requirements. However, we may enter into financial derivative instruments that contain provisions that require us to maintain an investment-grade credit rating from S&P, Fitch and/or Moody’s. If our credit ratings on our senior unsecured long-term debt were to decline below investment grade, the counterparties to the derivative instruments could request collateralization on derivative instruments in net liability positions. There were no financial derivative instruments with contingent features related to credit risk at December 31, 2021. The counterparties to our derivative contracts typically consist of major energy companies, financial institutions and commercial and industrial end users. This concentration of counterparties may affect our overall exposure to credit risk, either positively or negatively, in that the counterparties may be affected similarly by changes in economic, regulatory or other conditions. Based on our policies, exposures, credit and other reserves, we do not anticipate a material adverse effect on our financial position or results of operations as a result of counterparty nonperformance. At December 31, 2021, the credit exposure from our derivative assets is with investment-grade companies in the financial services sector. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The following table sets forth our property, plant and equipment by property type, for the periods indicated: Estimated Useful December 31, December 31, ( Thousands of dollars ) Nonregulated Gathering pipelines and related equipment 5 to 40 $ 4,371,936 $ 4,143,752 Processing and fractionation and related equipment 3 to 40 5,356,508 5,084,802 Storage and related equipment 3 to 54 874,522 798,785 Transmission pipelines and related equipment 5 to 54 886,343 810,434 General plant and other 2 to 60 695,117 647,675 Construction work in process — 1,132,961 1,265,736 Regulated Storage and related equipment 5 to 25 9,197 9,180 Natural gas transmission pipelines and related equipment 5 to 77 1,660,034 1,569,268 NGL transmission pipelines and related equipment 5 to 88 8,595,968 8,423,544 General plant and other 2 to 50 73,449 72,535 Construction work in process — 164,504 247,224 Property, plant and equipment 23,820,539 23,072,935 Accumulated depreciation and amortization - nonregulated (2,885,020) (2,514,328) Accumulated depreciation and amortization - regulated (1,615,645) (1,403,679) Net property, plant and equipment $ 19,319,874 $ 19,154,928 The average depreciation rates for our regulated property are set forth, by segment, in the following table for the periods indicated: Years Ended December 31, 2021 2020 2019 Natural Gas Liquids 2.2% 2.2% 2.0% Natural Gas Pipelines 2.1% 2.1% 2.1% We incurred costs for construction work in process that had not been paid at December 31, 2021, 2020 and 2019, of $130.5 million, $151.7 million and $544.8 million, respectively. Such amounts are not included in capital expenditures (less AFUDC) on the Consolidated Statements of Cash Flows. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill - The following table sets forth our goodwill, by segment, for the periods indicated: December 31, December 31, ( Thousands of dollars ) Natural Gas Liquids $ 371,217 $ 371,217 Natural Gas Pipelines 156,375 156,375 Total goodwill $ 527,592 $ 527,592 Impairment Charges - In 2020, we experienced a significant decline in our share price and market capitalization as the energy industry experienced historic events that led to a simultaneous demand and supply disruption. Due to the impact of these events, we tested our goodwill for impairment and concluded that the carrying value of the Natural Gas Gathering and Processing reporting unit exceeded its estimated fair value, resulting in a noncash impairment charge of $153.4 million, which is included within impairment charges in our Consolidated Statement of Income for the year ended December 31, 2020. At December 31, 2021 and 2020, we have no remaining goodwill in our Natural Gas Gathering and Processing segment. Intangible Assets - Our intangible assets relate primarily to contracts acquired through acquisitions in our Natural Gas Liquids and Natural Gas Gathering and Processing segments, which are being amortized over periods of 15 to 40 years. Amortization expense for intangible assets was $10.4 million in 2021, $10.8 million in 2020, and $11.9 million in 2019, and the aggregate amortization expense for each of the next five years is estimated to be $10.4 million. The following table reflects the gross carrying amount and accumulated amortization of intangible assets for the periods presented: December 31, December 31, ( Thousands of dollars ) Gross intangible assets $ 381,435 $ 381,435 Accumulated amortization (145,732) (135,304) Net intangible assets $ 235,703 $ 246,131 |
DEBT (Notes)
DEBT (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
DEBT | DEBT The following table sets forth our consolidated debt for the periods indicated: December 31, December 31, (Thousands of dollars) Commercial paper outstanding $ — $ — Senior unsecured obligations: $700,000 at 4.25% due February 2022 — 541,877 $900,000 at 3.375% due October 2022 895,814 895,814 $425,000 at 5.0% due September 2023 425,000 425,000 $500,000 at 7.5% due September 2023 500,000 500,000 $500,000 at 2.75% due September 2024 500,000 500,000 $500,000 at 4.9% due March 2025 500,000 500,000 $400,000 at 2.2% due September 2025 387,000 387,000 $600,000 at 5.85% due January 2026 600,000 600,000 $500,000 at 4.0% due July 2027 500,000 500,000 $800,000 at 4.55% due July 2028 800,000 800,000 $100,000 at 6.875% due September 2028 100,000 100,000 $700,000 at 4.35% due March 2029 700,000 700,000 $750,000 at 3.4% due September 2029 714,251 714,251 $850,000 at 3.1% due March 2030 780,093 780,093 $600,000 at 6.35% due January 2031 600,000 600,000 $400,000 at 6.0% due June 2035 400,000 400,000 $600,000 at 6.65% due October 2036 600,000 600,000 $600,000 at 6.85% due October 2037 600,000 600,000 $650,000 at 6.125% due February 2041 650,000 650,000 $400,000 at 6.2% due September 2043 400,000 400,000 $700,000 at 4.95% due July 2047 689,006 689,006 $1,000,000 at 5.2% due July 2048 1,000,000 1,000,000 $750,000 at 4.45% due September 2049 672,530 713,676 $500,000 at 4.5% due March 2050 443,015 451,270 $300,000 at 7.15% due January 2051 300,000 300,000 Guardian Pipeline Weighted average 7.85% due December 2022 — 13,657 Total debt 13,756,709 14,361,644 Unamortized portion of terminated swaps 11,596 13,314 Unamortized debt issuance costs and discounts (124,855) (138,887) Current maturities of long-term debt (895,814) (7,650) Short-term borrowings (a) — — Long-term debt $ 12,747,636 $ 14,228,421 (a) - Individual issuances of commercial paper under our commercial paper program generally mature in 90 days or less. $2.5 Billion Credit Agreement - Our $2.5 Billion Credit Agreement, which expires in June 2024, is a revolving credit facility and contains certain financial, operational and legal covenants. Among other things, these covenants include maintaining a ratio of indebtedness to adjusted EBITDA (EBITDA, as defined in our $2.5 Billion Credit Agreement, adjusted for all noncash charges and increased for projected EBITDA from certain lender-approved capital expansion projects) of no more than 5.0 to 1 at December 31, 2021. Our $2.5 Billion Credit Agreement includes a $100 million sublimit for the issuance of standby letters of credit and a $200 million sublimit for swingline loans. Under the terms of our $2.5 Billion Credit Agreement, we may request an increase in the size of the facility to an aggregate of $3.5 billion by either commitments from new lenders or increased commitments from existing lenders. Our $2.5 Billion Credit Agreement contains provisions for an applicable margin rate and an annual facility fee, both of which adjust with changes in our credit ratings. Based on our current credit ratings, borrowings, if any, will accrue at LIBOR, or alternate benchmark rate, plus 110 basis points, and the annual facility fee is 15 basis points. At December 31, 2021, our ratio of indebtedness to adjusted EBITDA was 4.0 to 1, and we were in compliance with all covenants under our $2.5 Billion Credit Agreement. At December 31, 2021 and 2020, we had letters of credit issued totaling $7.7 million, and no borrowings outstanding under our $2.5 Billion Credit Agreement. Senior Unsecured Obligations - All notes are senior unsecured obligations, ranking equally in right of payment with all of our existing and future unsecured senior indebtedness, and are structurally subordinate to any of the existing and future debt and other liabilities of any non-guarantor subsidiaries. Issuances - In May 2020, we completed an underwritten public offering of $1.5 billion senior unsecured notes consisting of $600 million, 5.85% senior notes due 2026; $600 million, 6.35% senior notes due 2031; and $300 million, 7.15% senior notes due 2051. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, were $1.48 billion. A portion of the proceeds was used to repay the outstanding borrowings under our $1.5 Billion Term Loan Agreement. The remainder was used for general corporate purposes. In March 2020, we completed an underwritten public offering of $1.75 billion senior unsecured notes consisting of $400 million, 2.2% senior notes due 2025; $850 million, 3.1% senior notes due 2030; and $500 million, 4.5% senior notes due 2050. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, were $1.73 billion. A portion of the proceeds was used to pay all outstanding amounts under our commercial paper program. The remainder was used for general corporate purposes, which included repayment of other existing indebtedness and funding capital expenditures. In August 2019, we completed an underwritten public offering of $2.0 billion senior unsecured notes consisting of $500 million, 2.75% senior notes due 2024; $750 million, 3.4% senior notes due 2029; and $750 million, 4.45% senior notes due 2049. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, were $1.97 billion. The proceeds were used for general corporate purposes, including repayment of existing indebtedness and funding capital expenditures. In March 2019, we completed an underwritten public offering of $1.25 billion senior unsecured notes consisting of $700 million, 4.35% senior notes due 2029 and an additional issuance of $550 million of our existing 5.2% senior notes due 2048. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, and exclusive of accrued interest, were $1.23 billion. The proceeds were used for general corporate purposes, including repayment of existing indebtedness and funding capital expenditures. Repayments - In November 2021, we redeemed the remaining $536.1 million of our $700 million, 4.25% senior notes due February 2022 at 100% of the principal amount, plus accrued and unpaid interest, with cash on hand and short-term borrowings. In June 2021, we repaid the remaining $11.7 million of Guardian Pipeline’s senior notes due December 2022 with cash on hand. In 2021, we repurchased in the open market outstanding principal of certain of our senior notes in the amount of $55.2 million for an aggregate repurchase price of $54.6 million with cash on hand. In May 2020, we repaid the remaining $1.25 billion of our $1.5 Billion Term Loan Agreement with cash on hand from our May 2020 public offering of $1.5 billion senior unsecured notes. In 2020, we repurchased in the open market outstanding principal of certain of our senior notes in the amount of $224.4 million for an aggregate repurchase price of $199.6 million with cash on hand. In connection with these open market repurchases, we recognized $22.3 million of net gains on extinguishment of debt, which is included in other income in our Consolidated Statement of Income for the year ended December 31, 2020. In September 2019, we redeemed our $300 million, 3.8% senior notes due March 2020 at a redemption price of $308.0 million, including the outstanding principal, plus accrued and unpaid interest, with cash on hand from our public offering of $2.0 billion senior unsecured notes in August 2019. In connection with this early redemption, we incurred a $2.7 million loss on extinguishment of debt, which is included in other expense in our Consolidated Statements of Income for the year ended December 31, 2019. In August 2019, we repaid $250 million of our $1.5 Billion Term Loan agreement with cash on hand. In March 2019, we repaid our $500 million, 8.625% senior notes at maturity with a combination of cash on hand and short-term borrowings. The aggregate maturities of long-term debt outstanding and interest obligations on debt as of December 31, 2021, for the years 2022 through 2026 are shown below: Senior Interest Total (Millions of dollars) 2022 $ 895.8 $ 670.5 $ 1,566.3 2023 $ 925.0 $ 629.3 $ 1,554.3 2024 $ 500.0 $ 584.6 $ 1,084.6 2025 $ 887.0 $ 553.6 $ 1,440.6 2026 $ 600.0 $ 508.8 $ 1,108.8 Covenants - Our senior notes are governed by indentures containing covenants, including among other provisions, limitations on our ability to place liens on our property or assets and to sell and leaseback our property. The indentures governing our 6.875% senior notes due 2028 include an event of default upon acceleration of other indebtedness of $15 million or more, and the indentures governing the remainder of our senior notes include an event of default upon the acceleration of other indebtedness of $100 million or more. Such events of default would entitle the trustee or the holders of 25% in aggregate principal amount of the outstanding senior notes to declare those senior notes immediately due and payable in full. The indenture for the 7.5% notes due 2023 also contains a provision that allows the holders of the notes to require ONEOK to offer to repurchase all or any part of their notes if a change of control and a credit rating downgrade occur at a purchase price of 101% of the principal amount, plus accrued and unpaid interest, if any. We may redeem our senior notes, in whole or in part, at any time prior to their maturity at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. We may redeem the balance of our senior notes due 2022, 2023, 2024, 2025, 2026, 2027, 2028 (4.55%), 2029, 2030, 2031, 2041, 2043, 2047, 2048, 2049, 2050 and 2051 at a redemption price equal to the principal amount, plus accrued and unpaid interest, starting one to six months before the maturity date as stipulated in the respective contract terms. Our senior notes are senior unsecured obligations, ranking equally in right of payment with all of our existing and future unsecured senior indebtedness. Other - We amortize premiums, discounts and expenses incurred in connection with the issuance of long-term debt consistent with the terms of the respective debt instrument. Debt Guarantees - ONEOK, ONEOK Partners and the Intermediate Partnership have cross guarantees in place for our and ONEOK Partners’ indebtedness. |
EQUITY (Notes)
EQUITY (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
EQUITY | EQUITY Series A and B Convertible Preferred Stock - There are no shares of Series A or Series B Preferred Stock currently issued or outstanding. Equity Issuances - In July 2020, we established an “at-the-market” equity program for the offer and sale from time to time of our common stock up to an aggregate offering price of $1.0 billion. The program allows us to offer and sell common stock at prices we deem appropriate through a sales agent, in forward sales transactions through a forward seller or directly to one or more of the program’s managers acting as principals. Sales of our common stock may be made by means of ordinary brokers’ transactions on the NYSE, in block transactions or as otherwise agreed to between us and the sales agent. We are under no obligation to offer and sell common stock under the program. No shares have been sold through our “at-the-market” program as of the date of this report. In June 2020, we completed an underwritten public offering of 29.9 million shares of our common stock at a public offering price of $32.00 per share, generating net proceeds, after deducting underwriting discounts, commissions and offering expenses, of $937.0 million. The proceeds were used for general corporate purposes, including repayment of existing indebtedness and funding capital expenditures. Dividends - Holders of our common stock share equally in any dividend declared by our Board of Directors, subject to the rights of the holders of outstanding Series E Preferred Stock. Dividends paid totaled $1.7 billion, $1.6 billion and $1.5 billion for 2021, 2020 and 2019, respectively. Although dividends per share did not increase in 2021 as compared with 2020, dividends paid increased due to the increase in number of shares outstanding as a result of our equity issuances. The following table sets forth the quarterly dividends per share paid on our common stock in the periods indicated: Years Ended December 31, 2021 2020 2019 First Quarter $ 0.935 $ 0.935 $ 0.860 Second Quarter 0.935 0.935 0.865 Third Quarter 0.935 0.935 0.890 Fourth Quarter 0.935 0.935 0.915 Total $ 3.74 $ 3.74 $ 3.53 Additionally, in February 2022, we maintained and paid a quarterly common stock dividend of $0.935 per share ($3.74 per share on an annualized basis), which was paid to shareholders of record as of January 31, 2022. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table sets forth the balance in accumulated other comprehensive loss for the periods indicated: Risk- Retirement and Other Risk- Accumulated ( Thousands of dollars ) January 1, 2020 $ (233,520) $ (131,481) $ (8,999) $ (374,000) Other comprehensive loss before reclassifications (165,023) (40,341) (8,635) (213,999) Amounts reclassified to net income (c) 21,097 14,187 1,266 36,550 Other comprehensive loss (143,926) (26,154) (7,369) (177,449) December 31, 2020 (377,446) (157,635) (16,368) (551,449) Other comprehensive income (loss) before reclassifications (203,868) 31,897 3,088 (168,883) Amounts reclassified to net income (c) 228,999 18,079 1,903 248,981 Other comprehensive income 25,131 49,976 4,991 80,098 December 31, 2021 $ (352,315) $ (107,659) $ (11,377) $ (471,351) (a) - All amounts are presented net of tax. (b) - Includes amounts related to supplemental executive retirement plan. (c) - See Note C for details of amounts reclassified to net income for risk-management assets/liabilities and Note K for retirement and other postretirement benefit plan obligations. The following table sets forth information about the balance of accumulated other comprehensive loss at December 31, 2021, representing unrealized losses related to risk-management assets and liabilities: Risk- ( Thousands of dollars ) Commodity derivative instruments expected to be realized within the next 36 months (b) $ (76,942) Settled interest-rate swaps to be recognized over the life of the long-term, fixed-rate debt (c) (163,320) Interest-rate swaps with future settlement dates expected to be amortized over the life of long-term debt (112,053) Accumulated other comprehensive loss at December 31, 2021 $ (352,315) (a) - All amounts are presented net of tax. (b) - Based on commodity prices on December 31, 2021, we expect net losses of $76.8 million, net of tax, will be reclassified into earnings during the next 12 months. (c) - We expect net losses of $27.1 million, net of tax, will be reclassified into earnings during the next 12 months. |
EARNINGS PER SHARE EARNINGS PER
EARNINGS PER SHARE EARNINGS PER SHARE (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE The following tables set forth the computation of basic and diluted EPS for the periods indicated: Year Ended December 31, 2021 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Net income available for common stock $ 1,498,606 446,403 $ 3.36 Diluted EPS Effect of dilutive securities — 1,000 Net income available for common stock and common stock equivalents $ 1,498,606 447,403 $ 3.35 Year Ended December 31, 2020 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Net income available for common stock $ 611,709 431,105 $ 1.42 Diluted EPS Effect of dilutive securities — 677 Net income available for common stock and common stock equivalents $ 611,709 431,782 $ 1.42 Year Ended December 31, 2019 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Net income available for common stock $ 1,277,477 413,560 $ 3.09 Diluted EPS Effect of dilutive securities — 1,884 Net income available for common stock and common stock equivalents $ 1,277,477 415,444 $ 3.07 |
SHARE-BASED PAYMENTS SHARE-BASE
SHARE-BASED PAYMENTS SHARE-BASED PAYMENTS (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTSOur Equity Incentive Plan (EIP) provides for the granting of stock-based compensation, including restricted stock unit awards and performance unit awards, to eligible employees and the granting of stock awards to non-employee directors. We have reserved 8.5 million shares of common stock for issuance under the EIP and at December 31, 2021, we had 5.5 million shares available for issuance under the plan. This calculation of available shares reflects shares issued and estimated shares expected to be issued upon vesting of outstanding awards granted under the EIP, excluding estimated forfeitures expected to be returned to the plan. Restricted Stock Units - We have granted restricted stock units to key employees that vest at the end of a three Restricted stock unit awards accrue dividend equivalents in the form of additional restricted stock units prior to vesting. Compensation expense is recognized on a straight-line basis over the vesting period of the award. Performance Unit Awards - We have granted performance unit awards to key employees that vest at the end of a three Stock Compensation for Non-Employee Directors The EIP provides for the granting of nonstatutory stock options and stock bonus awards to non-employee directors, including performance unit awards and restricted stock unit awards. Under the EIP, awards may be granted by the Executive Compensation Committee at any time, until grants have been made for all shares authorized under the EIP. The maximum number of shares of common stock and cash-based awards that can be issued to a participant under the EIP during any year is limited to $0.8 million in value as of the grant date. No performance unit awards or restricted stock unit awards have been made to non-employee directors, and there are no options outstanding. General For all awards outstanding, we used a 3% forfeiture rate based on historical forfeitures under our share-based payment plans. We currently use treasury stock to satisfy our share-based payment obligations. Compensation expense for our share-based payment plans was $54.1 million, $29.4 million and $46.5 million during 2021, 2020 and 2019, respectively, before related tax benefits of $14.4 million, $14.1 million and $31.7 million, respectively. Restricted Stock Unit Activity As of December 31, 2021, we had $19.3 million of total unrecognized compensation cost related to our nonvested restricted stock unit awards, which is expected to be recognized over a weighted-average period of 1.8 years. The following tables set forth activity and various statistics for our restricted stock unit awards: Number of Weighted Nonvested December 31, 2020 646,287 $ 63.85 Granted 417,212 $ 46.84 Released to participants (242,765) $ 51.57 Forfeited (40,797) $ 55.27 Nonvested December 31, 2021 779,937 $ 59.02 2021 2020 2019 Weighted-average grant date fair value (per share) $ 46.84 $ 76.49 $ 58.07 Fair value of units granted (thousands of dollars) $ 19,542 $ 16,552 $ 15,238 Grant date fair value of units vested (thousands of dollars) $ 12,519 $ 11,204 $ 10,691 Performance Unit Activity As of December 31, 2021, we had $31.7 million of total unrecognized compensation cost related to the nonvested performance unit awards, which is expected to be recognized over a weighted-average period of 1.8 years. The following tables set forth activity and various statistics related to the performance unit awards and the assumptions used in the valuations at the respective grant dates: Number of Weighted Nonvested December 31, 2020 834,246 $ 75.96 Granted 542,183 $ 62.03 Released to participants (311,907) $ 64.00 Forfeited (87,937) $ 68.37 Nonvested December 31, 2021 976,585 $ 72.73 2021 2020 2019 Volatility (a) 60.30% 21.70% 27.10% Dividend yield 8.13% 4.87% 5.05% Risk-free interest rate 0.21% 1.39% 2.47% (a) - Volatility was based on historical volatility over three years using daily stock price observations. 2021 2020 2019 Weighted-average grant date fair value (per share) $ 62.03 $ 88.43 $ 68.02 Fair value of units granted (thousands of dollars) $ 33,632 $ 25,028 $ 23,020 Grant date fair value of units vested (thousands of dollars) $ 19,962 $ 17,722 $ 15,018 Employee Stock Purchase Plan We have reserved a total of 11.6 million shares of common stock for issuance under our Employee Stock Purchase Plan (the ESPP). Subject to certain exclusions, all employees are eligible to participate in the ESPP. Employees can choose to have up to 10% of their base pay withheld from each paycheck during the offering period to purchase our common stock, subject to terms and limitations of the plan. The purchase price of the stock is 85% of the lower of its grant date or exercise date market price. Approximately 69%, 68% and 62% of employees participated in the plan in 2021, 2020 and 2019, respectively. Under the plan, we sold 277,012 shares at a weighted average of $38.98 per share in 2021, 359,977 shares at a weighted average of $27.78 per share in 2020 and 171,590 shares at a weighted average of $51.24 per share in 2019. Employee Stock Award Program Under our Employee Stock Award Program, we issue, for no monetary consideration, to all eligible employees one share of our common stock when the per-share closing price of our common stock on the NYSE is at or above each one-dollar increment above its previous high closing price. The total number of shares of our common stock available for issuance under this program is 900,000. Shares issued to employees under this program during 2020 and 2019 totaled 2,871 and 14,022, respectively. Compensation expense related to the Employee Stock Award Program was $0.2 million and $1.0 million for 2020 and 2019, respectively. No shares were issued to employees under this program in 2021. As of the date of this report, the next award will be issued when our common stock closes at or above $78. Deferred Compensation Plan for Non-Employee Directors Our Deferred Compensation Plan for Non-Employee Directors provides our non-employee directors the option to defer all or a portion of their compensation for their service on our Board of Directors. Under the plan, directors may elect either a cash deferral option or a phantom stock option. Under the cash deferral option, directors may elect to defer the receipt of all or a portion of their annual retainer fees, which will be credited with interest during the deferral period. Under the phantom stock option, directors may defer all or a portion of their annual retainer fees and receive such fees on a deferred basis in the form of shares of common stock under our EIP, which earn the equivalent of dividends declared on our common stock. Shares are distributed to non-employee directors at the fair market value of our common stock at the date of distribution. |
EMPLOYEE BENEFIT PLANS EMPLOYEE
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Compensation and Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Retirement and Other Postretirement Benefit Plans Retirement Plans - We have a defined benefit pension plan covering certain employees and former employees, which closed to new participants in 2005. In addition, we have a supplemental executive retirement plan for the benefit of certain officers who participate in our defined benefit pension plan. Our supplemental executive retirement plan is closed to new participants. We fund our defined benefit pension plan at a level needed to maintain or exceed the minimum funding levels required by the Employee Retirement Income Security Act of 1974, as amended. All employees are eligible to make salary deferrals and receive company matching contributions under our 401(k) Plan, and employees that do not participate in our defined benefit pension plan are also eligible to receive quarterly and annual profit-sharing contributions under our 401(k) Plan. Other Postretirement Benefit Plans - We sponsor health and welfare plans that provide postretirement medical and life insurance benefits to employees hired prior to 2017 who retire with at least five years of full-time consecutive service. The postretirement medical plan for pre-Medicare participants is contributory, with retiree contributions adjusted periodically, and contains other cost-sharing features such as deductibles and coinsurance. The postretirement medical plan for Medicare-eligible participants is an account-based plan under which participants may elect to purchase private insurance policies under a private exchange and/or seek reimbursement of other eligible medical expenses. Obligations and Funded Status - The following table sets forth our retirement and other postretirement benefit plans benefit obligations and fair value of plan assets for the periods indicated: Retirement Benefits Other Postretirement Benefits December 31, December 31, 2021 2020 2021 2020 Change in benefit obligation ( Thousands of dollars ) Benefit obligation, beginning of period $ 583,072 $ 534,849 $ 54,515 $ 52,309 Service cost 8,314 8,154 421 460 Interest cost 16,900 18,318 1,454 1,771 Plan participants’ contributions — — 1,092 1,032 Actuarial loss (gain) (22,792) 37,951 (2,496) 2,860 Benefits paid (18,483) (16,200) (3,959) (3,917) Benefit obligation, end of period (b) 567,011 583,072 51,027 54,515 Change in plan assets Fair value of plan assets, beginning of period 379,092 346,792 20,874 39,060 Actual return on plan assets (a) 41,374 36,400 5,919 (15,699) Employer contributions 11,200 12,100 — — Plan participants’ contributions — — 1,092 1,032 Benefits paid (18,483) (16,200) (3,488) (3,519) Fair value of plan assets, end of period (c) 413,183 379,092 24,397 20,874 Balance at December 31 $ (153,828) $ (203,980) $ (26,630) $ (33,641) Current liabilities $ (5,219) $ (4,679) $ — $ — Noncurrent liabilities (148,609) (199,301) (26,630) (33,641) Balance at December 31 $ (153,828) $ (203,980) $ (26,630) $ (33,641) (a) - Other Postretirement Benefits for the year ended December 31, 2020, includes a $13.2 million tax loss incurred from the exit of an investment in an insurance contract. (b) - The benefit obligation for Retirement Benefits at December 31, 2021 and 2020, include the supplemental executive retirement plan obligation. (c) - Fair value of plan assets for Retirement Benefits exclude the assets of our supplemental executive retirement plan, which totaled $111.2 million and $116.2 million at December 31, 2021 and 2020, respectively, and are included in other assets on the Consolidated Balance Sheets. These assets are maintained in a rabbi trust and are not treated as assets of the supplemental executive retirement plan. The accumulated benefit obligation for our retirement plans was $541.8 million and $548.2 million at December 31, 2021 and 2020, respectively. The actuarial gains and losses impacting our benefit obligations for our retirement and other postretirement benefit plans are due primarily to changes in the discount rate assumptions discussed in the “Actuarial Assumptions” section below. Components of Net Periodic Benefit Cost - The following table sets forth the components of net periodic benefit cost for our retirement and other postretirement benefit plans for the periods indicated: Retirement Benefits Other Postretirement Benefits Years Ended December 31, Years Ended December 31, 2021 2020 2019 2021 2020 2019 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 8,314 $ 8,154 $ 7,825 $ 421 $ 460 $ 468 Interest cost 16,900 18,318 20,528 1,454 1,771 2,038 Expected return on plan assets (25,109) (24,964) (23,600) (1,364) (2,894) (2,285) Amortization of prior service cost (credit) 114 114 — — — (227) Amortization of net loss 19,673 18,306 12,649 3,692 5 297 Net periodic benefit cost (income) $ 19,892 $ 19,928 $ 17,402 $ 4,203 $ (658) $ 291 Other Comprehensive Income (Loss) - The following table sets forth the amounts recognized in other comprehensive income (loss) related to our retirement and other postretirement benefits for the periods indicated: Retirement Benefits Other Postretirement Benefits Years Ended December 31, Years Ended December 31, 2021 2020 2019 2021 2020 2019 ( Thousands of dollars ) Net gain (loss) (a) $ 34,529 $ (31,016) $ (25,389) $ 7,052 $ (21,453) $ 700 Prior service cost — — (601) — — — Amortization of prior service cost (credit) (b) 114 114 — — — (227) Amortization of net loss (b) 19,673 18,306 12,649 3,692 5 297 Deferred income taxes (12,493) 2,897 3,068 (2,471) 4,933 (177) Total recognized in other comprehensive income (loss) $ 41,823 $ (9,699) $ (10,273) $ 8,273 $ (16,515) $ 593 (a) - Other Postretirement Benefits for the year ended December 31, 2020, includes a $13.2 million tax loss incurred from the exit of an investment in an insurance contract. (b) - These components are recognized in accumulated other comprehensive loss and are reclassified to other expense in our Consolidated Statements of Income, with related income tax benefits of $5.4 million, $4.2 million and $2.9 million reclassified to income tax expense for the years ended December 31, 2021, 2020 and 2019, respectively. The table below sets forth the amounts in accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit expense for the periods indicated: Retirement Benefits Other Postretirement Benefits December 31, December 31, 2021 2020 2021 2020 ( Thousands of dollars ) Prior service cost $ (374) $ (487) $ — $ — Accumulated loss (a) (131,460) (185,662) (14,815) (25,558) Accumulated other comprehensive loss (131,834) (186,149) (14,815) (25,558) Deferred income taxes 36,759 49,251 3,852 6,322 Accumulated other comprehensive loss, net of tax $ (95,075) $ (136,898) $ (10,963) $ (19,236) (a) - Other Postretirement Benefits for the year ended December 31, 2020, includes a $13.2 million tax loss incurred from the exit of an investment in an insurance contract. Actuarial Assumptions - The following table sets forth the weighted-average assumptions used to determine benefit obligations for retirement and other postretirement benefits for the periods indicated: Retirement Benefits Other Postretirement Benefits December 31, December 31, 2021 2020 2021 2020 Discount rate 3.25% 3.00% 3.00% 2.75% Compensation increase rate 3.60% 3.60% NA NA The following table sets forth the weighted-average assumptions used to determine net periodic benefit costs for the periods indicated: Years Ended December 31, 2021 2020 2019 Discount rate - retirement plans 3.00% 3.50% 4.50% Discount rate - other postretirement plans 2.75% 3.50% 4.50% Expected long-term return on plan assets 7.00% 7.50% 7.50% Compensation increase rate 3.60% 3.70% 3.65% We determine our overall expected long-term rate of return on plan assets based on our review of historical returns and economic growth models. We determine our discount rates annually utilizing portfolios of high-quality bonds matched to the estimated benefit cash flows of our retirement and other postretirement benefit plans. Bonds selected to be included in the portfolios are only those rated by S&P or Moody’s as an AA or Aa2 rating or better and exclude callable bonds, bonds with less than a minimum issue size, yield outliers and other filtering criteria to remove unsuitable bonds. Health Care Cost Trend Rates - The following table sets forth the assumed health care cost-trend rates for the periods indicated: 2021 2020 Health care cost-trend rate assumed for next year 6.50% 6.50% Rate to which the cost-trend rate is assumed to decline (the ultimate trend rate) 5.00% 5.00% Year that the rate reaches the ultimate trend rate 2025 2024 Plan Assets - Our investment strategy is to invest plan assets in accordance with sound investment practices that emphasize long-term fundamentals. The goal of this strategy is to maximize investment returns while managing risk in order to meet the plan’s current and projected financial obligations. The investment allocation for our other postretirement benefit plans is to target a diversified mix of approximately 30% fixed income and 70% equity securities. The investment allocation for our defined benefit pension plan follows a glide path approach of liability-driven investing that shifts a higher portfolio weighting to fixed income as the plan’s funded status increases. The purpose of liability-driven investing is to structure the asset portfolio to more closely resemble the pension liability and thereby more effectively hedge against changes in the liability. The plan’s current investments include a diverse blend of various domestic and international equities, investments in various classes of debt securities, real estate and hedge funds. The target allocation for the assets of our retirement plan as of December 31, 2021, is as follows: Domestic and international equities 42 % Long duration fixed income 30 % Return-seeking credit 11 % Hedge funds 10 % Real estate funds 7 % Total 100 % As part of our risk management for the plans, minimums and maximums have been set for each of the asset classes listed above. The following tables set forth the plan assets by fair value category as of the measurement date for our defined benefit pension and other postretirement benefit plans: Pension Benefits December 31, 2021 Asset Category Level 1 Level 2 Level 3 Subtotal Measured at NAV (d) Total ( Thousands of dollars ) Investments: Equity securities $ 42 $ — $ — $ 42 $ — $ 42 Common/collective trusts Equity securities (a) — — — — 166,132 166,132 Real estate funds — — — — 30,491 30,491 Government obligations — — — — 49,444 49,444 Corporate obligations (b) — — — — 120,877 120,877 Short-term investments — — — — 4,243 4,243 Other investments (c) — — — — 41,954 41,954 Fair value of plan assets $ 42 $ — $ — $ 42 $ 413,141 $ 413,183 (a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category repre sen ts alternative investments in limited partnerships, which can be redeemed with a 30-day notice with no further restrictions. There are no unfunded capital commitments. These limited partnerships invest through multi-strategy programs in broadly diversified portfolios of private investment funds, hedge funds and/or separate accounts to seek equity-like returns with low market correlation, reduced volatility and limited risk. (d) - Plan asset investments measured at fair value using the net asset value per share. Pension Benefits December 31, 2020 Asset Category Level 1 Level 2 Level 3 Subtotal Measured at NAV (d) Total ( Thousands of dollars ) Investments: Equity securities $ 43 $ — $ — $ 43 $ — $ 43 Common/collective trusts Equity securities (a) — — — — 164,099 164,099 Real estate funds — — — — 24,134 24,134 Government obligations — — — — 45,237 45,237 Corporate obligations (b) — — — — 101,626 101,626 Short-term investments (e) — — — — 4,890 4,890 Other investments (c) — — — — 39,063 39,063 Fair value of plan assets $ 43 $ — $ — $ 43 $ 379,049 $ 379,092 (a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category represents alternative investments in limited partnerships, which can be redeemed with a 30-day notice with no further restrictions. There are no unfunded capital commitments. These limited partnerships invest through multi-strategy programs in broadly diversified portfolios of private investment funds, hedge funds and/or separate accounts to seek equity-like returns with low market correlation, reduced volatility and limited risk. (d) - Plan asset investments measured at fair value using the net asset value per share. (e) - The fair value of short term investments in the Bank of New York Mellon EB Temporary Investment Fund was previously reported in Level 2. We elected to consistently apply the practical expedient to all investments within common/collective trusts, and therefore, the fair value of this fund is now measured at net asset value per share and no longer classified in the fair value hierarchy. Other Postretirement Benefits December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a) $ 17,953 $ — $ — $ 17,953 Money market funds — 480 — 480 Municipal obligations 5,964 — — 5,964 Fair value of plan assets $ 23,917 $ 480 $ — $ 24,397 (a) - This category represents securities of the respective market sector from diverse industries. Other Postretirement Benefits December 31, 2020 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a)(b) $ 15,116 $ — $ — $ 15,116 Money market funds — 808 — 808 Municipal obligations (b) 4,950 — — 4,950 Fair value of plan assets $ 20,066 $ 808 $ — $ 20,874 (a) - This category represents securities of the respective market sector from diverse industries. (b) - Net proceeds of $16.2 million from the exit of an investment in an insurance contract were reinvested in various equity securities and municipal obligations. Contributions - During 2021, we made $11.2 million in contributions to our defined benefit pension plan and no contributions to our other postretirement plans. Our defined benefit pension plan elected to adopt funding relief provided by the American Rescue Plan Act of 2021 legislation. As a result of the election, our defined benefit pension plan has no minimum required contribution in 2022. Pension and Other Postretirement Benefit Payments - Benefit payments for our defined benefit pension and other postretirement benefit plans for the period ending December 31, 2021, were $18.5 million and $4.0 million, respectively. The following table sets forth the defined benefit pension and other postretirement benefits payments expected to be paid in 2022 through 2031: Pension Other Postretirement Benefits to be paid in: ( Thousands of dollars ) 2022 $ 25,962 $ 3,387 2023 $ 26,756 $ 3,363 2024 $ 27,769 $ 3,302 2025 $ 28,759 $ 3,293 2026 $ 29,651 $ 3,220 2027 through 2031 $ 156,041 $ 15,339 The expected benefits to be paid are based on the same assumptions used to measure our benefit obligation at December 31, 2021, and include estimated future employee service. Other Employee Benefit Plans 401(k) Plan - We have a 401(k) Plan covering all employees, and employee contributions are discretionary. We match 100% of employee 401(k) Plan contributions up to 6% of each participant’s eligible compensation each payroll period, subject to certain limits. We also make profit-sharing contributions under our 401(k) Plan for employees who do not participate in our defined benefit pension plan. We generally make a quarterly profit sharing contribution equal to 1% of each profit-sharing participant’s eligible compensation during the quarter and an annual discretionary profit-sharing contribution equal to a percentage of each profit-sharing participant’s eligible compensation. Our contributions made to the plan, including profit-sharing contributions, were $32.7 million, $27.1 million and $30.4 million in 2021, 2020 and 2019, respectively. Nonqualified Deferred Compensation Plan - The 2020 Nonqualified Deferred Compensation Plan and its predecessor nonqualified deferred compensation plans (collectively, the NQDC Plan) provide a select group of management and highly compensated employees, as approved by our Chief Executive Officer, with the option to defer portions of their compensation and receive notional employer contributions that generally are not available due to limitations on employer and employee contributions to qualified defined contribution plans under federal tax laws. We have investments included in other assets on the Consolidated Balance Sheets related to the NQDC Plan, which totaled $36.1 million and $32.4 million at December 31, 2021 and 2020, respectively. These investments are maintained in a rabbi trust. Our contributions to the plan were not material in 2021, 2020 and 2019. |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table sets forth our provision for income taxes for the periods indicated: Years Ended December 31, 2021 2020 2019 ( Thousands of dollars ) Current tax expense (benefit) Federal $ 2,897 $ 980 $ (1,278) State 9,544 1,797 963 Total current tax expense (benefit) 12,441 2,777 (315) Deferred tax expense Federal 433,469 154,068 327,806 State 38,588 32,662 44,923 Total deferred tax expense 472,057 186,730 372,729 Total provision for income taxes $ 484,498 $ 189,507 $ 372,414 The following table is a reconciliation of our income tax provision for the periods indicated: Years Ended December 31, 2021 2020 2019 ( Thousands of dollars ) Income before income taxes $ 1,984,204 $ 802,316 $ 1,650,991 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Provision for federal income taxes 416,683 168,486 346,708 State income taxes, net of federal benefit 40,092 13,580 34,545 Deferred tax rate change, inclusive of valuation allowance 6,350 20,879 11,340 Excess tax benefits from share-based compensation (1,968) (7,380) (20,983) Other, net (a) 23,341 (6,058) 804 Income tax provision $ 484,498 $ 189,507 $ 372,414 (a) The year ended December 31, 2021, includes $19.4 million impact from previously recognized gains on certain benefit plan investments. The following table sets forth the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities for the periods indicated: December 31, December 31, Deferred tax assets ( Thousands of dollars ) Employee benefits and other accrued liabilities $ 95,952 $ 96,741 Federal net operating loss 1,337,050 1,473,093 State net operating loss and benefits 216,181 258,929 Derivative instruments 118,063 134,499 Other 4,863 12,894 Total deferred tax assets 1,772,109 1,976,156 Valuation allowance for state net operating loss and tax credits Carryforward expected to expire prior to utilization (84,755) (121,212) Net deferred tax assets 1,687,354 1,854,944 Deferred tax liabilities Excess of tax over book depreciation 84,692 87,021 Investment in partnerships (a) 2,769,352 2,437,620 Total deferred tax liabilities 2,854,044 2,524,641 Net deferred tax assets (liabilities) $ (1,166,690) $ (669,697) (a) Due primarily to excess of tax over book depreciation. As of December 31, 2021, we have federal net operating loss carryforwards of $6.4 billion, the majority of which have an indefinite carry forward period. We expect to generate taxable income and utilize these net operating loss carryforwards in future periods. We also have loss and credit carryovers in multiple states, $2.8 billion of which have an indefinite carry forward period and $1.9 billion of which will expire between 2022 and 2038. We have deferred tax assets related to federal and state net operating loss and credit carryforwards of $1.6 billion and $1.7 billion in 2021 and 2020, respectively. We believe that it is more likely than not that the tax benefits of certain state carryforwards will not be utilized; therefore, we recorded a valuation allowance of $6.4 million , $20.9 million and $11.3 million through net income related to these tax benefits in 2021, 2020 and 2019 , respectively. |
UNCONSOLIDATED AFFILIATES (Note
UNCONSOLIDATED AFFILIATES (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
UNCONSOLIDATED AFFILIATES | UNCONSOLIDATED AFFILIATES Investments in Unconsolidated Affiliates - The following table sets forth our investments in unconsolidated affiliates for the periods indicated: Net December 31, December 31, ( Thousands of dollars ) Northern Border Pipeline 50% $ 283,170 $ 291,987 Overland Pass Pipeline 50% 403,011 409,573 Roadrunner 50% 70,777 66,794 Other (a) Various 40,655 36,678 Investments in unconsolidated affiliates (b) $ 797,613 $ 805,032 (a) - Year ended December 31, 2020, includes the impact of noncash impairment charges of $37.7 million related to the equity investments discussed below, offset partially by an acquisition of an additional equity interest for $20.0 million. (b) - Equity-method goodwill (Note A) was $16.5 million at December 31, 2021 and 2020. Equity in Net Earnings from Investments and Impairments - The following table sets forth our equity in net earnings (loss) from investments for the periods indicated: Years Ended December 31, 2021 2020 2019 ( Thousands of dollars ) Northern Border Pipeline $ 64,470 $ 75,409 $ 68,871 Overland Pass Pipeline 19,434 38,618 63,698 Roadrunner 33,293 29,017 26,839 Other 5,323 197 (4,867) Equity in net earnings from investments $ 122,520 $ 143,241 $ 154,541 Impairment of equity investments $ — $ (37,730) $ — Impairment Charges - In 2020, we incurred a noncash impairment charge of $30.5 million related to our 10.2% investment in Venice Energy Services Company in our Natural Gas Gathering and Processing segment, which includes $22.3 million related to equity-method goodwill, and a $7.2 million noncash impairment charge related to our 50% investment in Chisholm Pipeline Company in our Natural Gas Liquids segment. These impairment charges are included within impairment of equity investments in our Consolidated Statement of Income for the year ended December 31, 2020. We incurred expenses in transactions with unconsolidated affiliates of $62.8 million, $135.4 million and $164.7 million for 2021, 2020 and 2019, respectively, primarily related to Overland Pass Pipeline and Northern Border Pipeline. Revenue earned and accounts receivable from, and accounts payable to, our equity-method investees were not material. Northern Border Pipeline - The Northern Border Pipeline partnership agreement provides that distributions to Northern Border Pipeline’s partners are to be made on a pro rata basis according to each partner’s ownership percentage interest. The Northern Border Pipeline Management Committee determines the amount and timing of such distributions. Any changes to, or suspension of, the cash distribution policy of Northern Border Pipeline requires the unanimous approval of the Northern Border Pipeline Management Committee. Cash distributions are equal to 100% of distributable cash flow as determined from Northern Border Pipeline’s financial statements based upon EBITDA less interest expense and maintenance capital expenditures. As determined by the Northern Border Pipeline Management Committee, we received an additional distribution of $50.0 million from Northern Border Pipeline during the year ended December 31, 2019. Loans or other advances from Northern Border Pipeline to its partners or affiliates are prohibited under its credit agreement. In all periods presented, we made no contributions to Northern Border Pipeline. Overland Pass Pipeline - The Overland Pass Pipeline agreement provides that distributions to Overland Pass Pipeline’s members are to be made on a pro rata basis according to each member’s ownership percentage interest. The Overland Pass Pipeline Company Management Committee determines the amount and timing of such distributions. Any changes to, or suspension of, the cash distributions from Overland Pass Pipeline requires the unanimous approval of the Overland Pass Pipeline Company Management Committee. Cash distributions are equal to 100% of available cash as defined in the limited liability company agreement. In all periods presented, our contributions to Overland Pass Pipeline were not material. Roadrunner - The Roadrunner agreement provides that distributions to members are made on a pro rata basis according to each member’s ownership interest. As the operator, we have been delegated the authority to determine such distributions in accordance with, and on the frequency set forth in, the Roadrunner agreement. Cash distributions are equal to 100% of available cash, as defined in the limited liability company agreement. In all periods presented, our contributions to Roadrunner were not material. We have an operating agreement with Roadrunner that provides for reimbursement or payment to us for management services and certain operating costs. Reimbursements and payments from Roadrunner included in operating income in our Consolidated Statements of Income for all periods presented were not material. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments - Firm transportation and storage contracts are fixed-price contracts that provide us with firm transportation and storage capacity. The following table sets forth our firm transportation and storage contract payments for the periods indicated: Firm ( Millions of dollars ) 2022 $ 72.3 2023 63.1 2024 59.3 2025 53.9 2026 40.8 Thereafter 211.6 Total $ 501.0 Environmental Matters and Pipeline Safety - The operation of pipelines, plants and other facilities for the gathering, processing, fractionation, transportation and storage of natural gas, NGLs, condensate and other products is subject to numerous and complex laws and regulations pertaining to health, safety and the environment. As an owner and/or operator of these facilities, we must comply with laws and regulations that relate to air and water quality, hazardous and solid waste management and disposal, cultural resource protection and other environmental and safety matters. The cost of planning, designing, constructing and operating pipelines, plants and other facilities must incorporate compliance with these laws, regulations and safety standards. Failure to comply with these laws and regulations may trigger a variety of administrative, civil and potentially criminal enforcement measures, including citizen suits, which can include the assessment of monetary penalties, the imposition of remedial requirements and the issuance of injunctions or restrictions on operation or construction. Management does not believe that, based on currently known information, a material risk of noncompliance with these laws and regulations exists that will affect adversely our consolidated results of operations, financial condition or cash flows. Legal Proceedings - We are a party to various legal proceedings that have arisen in the normal course of our operations. While the results of these proceedings cannot be predicted with certainty, we believe the reasonably possible losses from such proceedings, individually and in the aggregate, are not material. Additionally, we believe the probable final outcome of such proceedings will not have a material adverse effect on our consolidated results of operations, financial position or cash flows. |
LEASES (Notes)
LEASES (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES We lease certain buildings, warehouses, office space, pipeline capacity, land and equipment, including pipeline equipment, rail cars and information technology equipment. Our lease payments are generally straight-line and the exercise of lease renewal options, which vary in term, is at our sole discretion. We include renewal periods in a lease term if we are reasonably certain to exercise available renewal options. We apply the short-term policy election, which allows us to exclude from recognition leases with an initial term of 12 months or less. Our lease agreements do not include any residual value guarantees or material restrictive covenants. Through ONEOK Leasing Company, L.L.C. and ONEOK Parking Company, L.L.C., we own an office building and a parking garage and lease excess space in these facilities to affiliates and others. Our consolidated lease income is not material. The following table sets forth information about our lease assets and liabilities included in our Consolidated Balance Sheet for the periods indicated: Leases Location in our Consolidated December 31, 2021 December 31, 2020 ( Thousands of dollars ) Assets Operating leases Other assets $ 89,558 $ 100,154 Finance lease Property, plant and equipment 29,962 28,286 Finance lease Accumulated depreciation (3,590) (2,451) Total leased assets $ 115,930 $ 125,989 Liabilities Current Operating leases Operating lease liability $ 13,783 $ 13,610 Finance lease Other current liabilities 2,584 2,153 Noncurrent Operating leases Operating lease liability 75,636 87,610 Finance lease Other deferred credits 21,082 22,143 Total lease liabilities $ 113,085 $ 125,516 The following table sets forth supplemental cash flow information related to our leases: Years Ended December 31, 2021 2020 ( Thousands of dollars ) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 15,690 $ 13,245 Financing cash flows for finance lease $ 2,307 $ 1,949 Right-of-use assets obtained in exchange for operating lease liabilities (noncash) (a) $ 1,150 $ 99,547 (a) - In December 2019, we entered into an operating lease for pipeline capacity with a lease term of 10 years that commenced January 1, 2020. In connection with this lease, we recognized an operating lease right-of-use asset and a lease liability with remaining balances of $69.0 million and $69.9 million, respectively, as of December 31, 2020. The following table sets forth information about our lease costs for the periods indicated: Years Ended December 31, Location in our Consolidated 2021 2020 ( Thousands of dollars ) Operating leases Operations and maintenance $ 17,747 $ 17,162 Finance lease Amortization of lease assets Depreciation and amortization 1,139 1,131 Interest on lease liabilities Interest expense 2,338 2,537 Total lease cost $ 21,224 $ 20,830 The following table sets forth information about our leases for the periods indicated: December 31, 2021 December 31, 2020 Weighted average remaining lease term (years) Operating leases 7.8 8.3 Finance lease 6.6 7.8 Weighted average discount rate (a) Operating leases 3.40% 3.20% Finance lease 9.60% 10.00% (a) - Our weighted-average discount rates represent the rate implicit in the lease or our incremental borrowing rate for a term equal to the remaining term of the lease. The following table sets forth the maturity of our lease liabilities as of December 31, 2021: Finance Operating ( Millions of dollars ) 2022 $ 4.7 $ 16.4 2023 4.7 13.9 2024 4.7 12.6 2025 5.4 11.2 2026 4.5 11.4 2027 and beyond 8.3 36.9 Total lease payments 32.3 102.4 Less: Interest 8.6 13.0 Present value of lease liabilities $ 23.7 $ 89.4 |
REVENUES (Notes)
REVENUES (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUES Contract Assets and Contract Liabilities - Our contract asset balances at the beginning and end of the years ended December 31, 2021 and 2020, primarily relate to our firm service transportation contracts with tiered rates, which are not material. The following table sets forth the balances in contract liabilities for the periods indicated: Contract Liabilities ( Millions of dollars ) Balance at January 1, 2020 $ 57.1 Revenue recognized included in beginning balance (c) (36.1) Net additions 20.4 Balance at December 31, 2020 (a) 41.4 Revenue recognized included in beginning balance (23.7) Net additions 33.8 Balance at December 31, 2021 (b) $ 51.5 (a) - Contract liabilities of $23.7 million and $17.7 million are included in other current liabilities and other deferred credits, respectively, in our Consolidated Balance Sheet. (b) - Contract liabilities of $35.3 million and $16.2 million are included in other current liabilities and other deferred credits, respectively, in our Consolidated Balance Sheet. (c) - Includes a contract settlement of revenue previously deferred. Receivables from Customers and Revenue Disaggregation - Substantially all of the balances in accounts receivable on our Consolidated Balance Sheets at December 31, 2021 and 2020, relate to customer receivables. Revenues sources are disaggregated in Note Q. Transaction Price Allocated to Unsatisfied Performance Obligations - We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) variable consideration on contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. The following table presents aggregate value allocated to unsatisfied performance obligations as of December 31, 2021, and the amounts we expect to recognize in revenue in future periods, related primarily to firm transportation and storage contracts with remaining contract terms ranging from one month to 22 years: Expected Period of Recognition in Revenue ( Millions of dollars ) 2022 $ 339.1 2023 288.2 2024 238.1 2025 162.7 2026 and beyond 781.3 Total estimated transaction price allocated to unsatisfied performance obligations $ 1,809.4 The table above excludes variable consideration allocated entirely to wholly unsatisfied performance obligations, wholly unsatisfied promises to transfer distinct goods or services that are part of a single performance obligation and consideration we determine to be fully constrained. Information on the nature of the variable consideration excluded and the nature of the performance obligations to which the variable consideration relates can be found in the description of the major contract types discussed in Note A. The amounts we determined to be fully constrained relate to future sales obligations under long-term sales contracts where the transaction price is not known and minimum volume agreements, which we consider to be fully constrained until invoiced. |
SEGMENTS (Notes)
SEGMENTS (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
SEGMENTS | SEGMENTS Segment Descriptions - Our operations are divided into three reportable business segments, as follows: • our Natural Gas Gathering and Processing segment gathers, treats and processes natural gas; • our Natural Gas Liquids segment gathers, treats, fractionates and transports NGLs and stores, markets and distributes NGL products; and • our Natural Gas Pipelines segment transports and stores natural gas via regulated intrastate and interstate natural gas transmission pipelines and natural gas storage facilities. Other and eliminations consist of corporate costs, the operating and leasing activities of our headquarters building and related parking facility and eliminations necessary to reconcile our reportable segments to our Consolidated Financial Statements. For the year ended December 31, 2021, revenues from one customer in our Natural Gas Liquids segment represents approximately 11.6% of our consolidated revenues. For the years ended December 31, 2020 and 2019, we had no single customer from which we received 10% or more of our consolidated revenues. Operating Segment Information - The following tables set forth certain selected financial information for our operating segments for the periods indicated: Year Ended December 31, 2021 Natural Gas Natural Gas Natural Gas Total ( Thousands of dollars ) NGL and condensate sales $ 2,821,175 $ 13,653,120 $ — $ 16,474,295 Residue natural gas sales 1,483,898 — 115,495 1,599,393 Gathering, processing and exchange services revenue 135,501 517,758 — 653,259 Transportation and storage revenue — 179,619 490,498 670,117 Other 20,965 41,376 910 63,251 Total revenues (c) 4,461,539 14,391,873 606,903 19,460,315 Cost of sales and fuel (exclusive of depreciation and operating costs) (3,226,078) (11,939,661) (11,236) (15,176,975) Operating costs (367,390) (528,084) (170,257) (1,065,731) Equity in net earnings from investments 3,757 21,000 97,763 122,520 Noncash compensation expense and other 17,299 18,511 4,637 40,447 Segment adjusted EBITDA $ 889,127 $ 1,963,639 $ 527,810 $ 3,380,576 Depreciation and amortization $ (260,011) $ (298,937) $ (58,702) $ (617,650) Investments in unconsolidated affiliates $ 27,018 $ 416,648 $ 353,947 $ 797,613 Total assets $ 6,768,955 $ 14,502,372 $ 2,143,307 $ 23,414,634 Capital expenditures $ 275,165 $ 306,949 $ 92,617 $ 674,731 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $2.4 billion, of which $2.2 billion related to revenues within the segment, and cost of sales and fuel of $607.5 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $394.2 million and cost of sales and fuel of $24.3 million. (c) - Intersegment revenues are primarily commodity sales which are based on the contracted selling price, which is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $2.9 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material. Year Ended December 31, 2021 Total Other and Total ( Thousands of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 16,474,295 $ (2,904,598) $ 13,569,697 Residue natural gas sales 1,599,393 — 1,599,393 Gathering, processing and exchange services revenue 653,259 — 653,259 Transportation and storage revenue 670,117 (13,121) 656,996 Other 63,251 (2,287) 60,964 Total revenues (a) $ 19,460,315 $ (2,920,006) $ 16,540,309 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (15,176,975) $ 2,920,320 $ (12,256,655) Operating costs $ (1,065,731) $ (1,357) $ (1,067,088) Depreciation and amortization $ (617,650) $ (4,051) $ (621,701) Equity in net earnings from investments $ 122,520 $ — $ 122,520 Investments in unconsolidated affiliates $ 797,613 $ — $ 797,613 Total assets $ 23,414,634 $ 206,979 $ 23,621,613 Capital expenditures $ 674,731 $ 22,123 $ 696,854 (a) - Noncustomer revenue for the year ended December 31, 2021, totaled $(565.0) million related primarily to losses from derivatives on commodity contracts. Year Ended December 31, 2020 Natural Gas Natural Gas Natural Gas Total ( Thousands of dollars ) NGL and condensate sales $ 889,388 $ 6,409,332 $ — $ 7,298,720 Residue natural gas sales 771,486 — 8,693 780,179 Gathering, processing and exchange services revenue 141,943 488,574 — 630,517 Transportation and storage revenue — 182,915 470,097 653,012 Other 17,304 9,192 1,192 27,688 Total revenues (c) 1,820,121 7,090,013 479,982 9,390,116 Cost of sales and fuel (exclusive of depreciation and operating costs) (843,976) (5,108,558) (6,809) (5,959,343) Operating costs (326,938) (412,900) (141,713) (881,551) Equity in net earnings (loss) from investments (1,123) 39,938 104,426 143,241 Noncash compensation expense and other 1,952 8,748 1,540 12,240 Segment adjusted EBITDA $ 650,036 $ 1,617,241 $ 437,426 $ 2,704,703 Depreciation and amortization $ (247,010) $ (271,900) $ (55,739) $ (574,649) Impairment charges $ (566,145) $ (78,785) $ — $ (644,930) Investments in unconsolidated affiliates $ 22,757 $ 423,494 $ 358,781 $ 805,032 Total assets $ 6,499,908 $ 13,636,109 $ 2,100,213 $ 22,236,230 Capital expenditures $ 446,142 $ 1,655,759 $ 71,918 $ 2,173,819 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $2.0 billion, of which $1.8 billion related to revenues within the segment, and cost of sales and fuel of $520.6 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $298.5 million and cost of sales and fuel of $30.4 million. (c) - Intersegment revenues are primarily commodity sales which are based on the contracted selling price, which is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $865.6 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material. Year Ended December 31, 2020 Total Other and Total ( Thousands of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 7,298,720 $ (820,851) $ 6,477,869 Residue natural gas sales 780,179 (10,860) 769,319 Gathering, processing and exchange services revenue 630,517 — 630,517 Transportation and storage revenue 653,012 (14,599) 638,413 Other 27,688 (1,564) 26,124 Total revenues (a) $ 9,390,116 $ (847,874) $ 8,542,242 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (5,959,343) $ 849,197 $ (5,110,146) Operating costs $ (881,551) $ (4,653) $ (886,204) Depreciation and amortization $ (574,649) $ (4,013) $ (578,662) Impairment charges $ (644,930) $ — $ (644,930) Equity in net earnings from investments $ 143,241 $ — $ 143,241 Investments in unconsolidated affiliates $ 805,032 $ — $ 805,032 Total assets $ 22,236,230 $ 842,524 $ 23,078,754 Capital expenditures $ 2,173,819 $ 21,562 $ 2,195,381 (a) - Noncustomer revenue for the year ended December 31, 2020, totaled $65.8 million related primarily to gains from derivatives on commodity contracts. Year Ended December 31, 2019 Natural Gas Natural Gas Natural Gas Total ( Thousands of dollars ) NGL and condensate sales $ 1,224,378 $ 7,910,833 $ — $ 9,135,211 Residue natural gas sales 966,149 — 1,244 967,393 Gathering, processing and exchange services revenue 164,299 414,238 — 578,537 Transportation and storage revenue — 197,483 466,266 663,749 Other 13,813 9,962 4,477 28,252 Total revenues (c) 2,368,639 8,532,516 471,987 11,373,142 Cost of sales and fuel (exclusive of depreciation and operating costs) (1,302,310) (6,690,918) (4,628) (7,997,856) Operating costs (368,352) (456,892) (157,230) (982,474) Equity in net earnings (loss) from investments (6,292) 65,123 95,710 154,541 Noncash compensation expense and other 10,965 15,936 2,977 29,878 Segment adjusted EBITDA $ 702,650 $ 1,465,765 $ 408,816 $ 2,577,231 Depreciation and amortization $ (219,519) $ (196,132) $ (57,250) $ (472,901) Investments in unconsolidated affiliates $ 34,426 $ 439,393 $ 388,025 $ 861,844 Total assets $ 6,795,744 $ 12,551,476 $ 2,094,072 $ 21,441,292 Capital expenditures $ 926,489 $ 2,796,604 $ 99,221 $ 3,822,314 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $1.4 billion, of which $1.2 billion related to revenues within the segment, and cost of sales and fuel of $496.8 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $285.3 million and cost of sales and fuel of $20.0 million. (c) - Intersegment revenues are primarily commodity sales which are based on the contracted selling price, which is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $1.2 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material. Year Ended December 31, 2019 Total Other and Total (Thousands of dollars) Reconciliations of total segments to consolidated NGL and condensate sales $ 9,135,211 $ (1,190,424) $ 7,944,787 Residue natural gas sales 967,393 (1,418) 965,975 Gathering, processing and exchange services revenue 578,537 — 578,537 Transportation and storage revenue 663,749 (15,646) 648,103 Other 28,252 (1,287) 26,965 Total revenues (a) $ 11,373,142 $ (1,208,775) $ 10,164,367 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (7,997,856) $ 1,209,816 $ (6,788,040) Operating costs $ (982,474) $ (390) $ (982,864) Depreciation and amortization $ (472,901) $ (3,634) $ (476,535) Equity in net earnings from investments $ 154,541 $ — $ 154,541 Investments in unconsolidated affiliates $ 861,844 $ — $ 861,844 Total assets $ 21,441,292 $ 370,829 $ 21,812,121 Capital expenditures $ 3,822,314 $ 26,035 $ 3,848,349 (a) - Noncustomer revenue for the year ended December 31, 2019, totaled $139.6 million related primarily to gains from derivatives on commodity contract s. Years Ended December 31, 2021 2020 2019 Reconciliation of net income to total segment adjusted EBITDA ( Thousands of dollars ) Net income $ 1,499,706 $ 612,809 $ 1,278,577 Add: Interest expense, net of capitalized interest 732,924 712,886 491,773 Depreciation and amortization 621,701 578,662 476,535 Income tax expense 484,498 189,507 372,414 Impairment charges — 644,930 — Noncash compensation expense 42,592 8,540 26,699 Other corporate costs and equity AFUDC (a) (845) (42,631) (68,767) Total segment adjusted EBITDA $ 3,380,576 $ 2,704,703 $ 2,577,231 (a) - The year ended December 31, 2020, includes corporate net gains of $22.3 million on extinguishment of debt related to open market repurchases. The year ended December 31, 2019, includes higher equity AFUDC related to our capital-growth projects compared with 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Consolidation | Consolidation - Our Consolidated Financial Statements include our accounts and the accounts of our subsidiaries over which we have control or are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Investments in unconsolidated affiliates are accounted for using the equity method if we have the ability to exercise significant influence over operating and financial policies of our investee. Under this method, an investment is carried at its acquisition cost and adjusted each period for contributions made, distributions received and our share of the investee’s comprehensive income. For the investments we account for under the equity method, the premium or excess cost over underlying fair value of net assets is referred to as equity-method goodwill. Impairment of equity investments is recorded when the impairments are other than temporary. These amounts are recorded as investments in unconsolidated affiliates on our accompanying Consolidated Balance Sheets. See Note M for disclosures of our unconsolidated affiliates. Distributions paid to us from our unconsolidated affiliates are classified as operating activities on our Consolidated Statements of Cash Flows until the cumulative distributions exceed our proportionate share of income from the unconsolidated affiliate since the date of our initial investment. The amount of cumulative distributions paid to us that exceeds our cumulative proportionate share of income in each period represents a return of investment and is classified as an investing activity on our Consolidated Statements of Cash Flows. |
Use of Estimates | Use of Estimates - The preparation of our Consolidated Financial Statements and related disclosures in accordance with GAAP requires us to make estimates and assumptions with respect to values or conditions that cannot be known with certainty that affect the reported amounts on our Consolidated Financial Statements. Items that may be estimated include, but are not limited to, the economic useful life of assets, fair value of assets, liabilities and equity-method investments, obligations under employee benefit plans, provisions for uncollectible accounts receivable, expenses for services received but for which no invoice has been received, provision for income taxes, including any deferred tax valuation allowances, the results of litigation and various other recorded or disclosed amounts. In addition, a portion of our revenues and cost of sales and fuel are recorded based on current month prices and estimated volumes. The estimates are reversed in the following month when we record actual volumes. We evaluate our estimates on an ongoing basis using historical experience, consultation with experts and other methods we consider reasonable based on the particular circumstances. Nevertheless, actual results may differ significantly from the estimates. Any effects on our financial position or results of operations from revisions to these estimates are recorded in the period when the facts that give rise to the revision become known. |
Fair Value Measurements | Fair Value Measurements - For our fair value measurements, we utilize market prices, third-party pricing services, present value methods and standard option valuation models to determine the price we would receive from the sale of an asset or the transfer of a liability in an orderly transaction at the measurement date. We measure the fair value of a group of financial assets and liabilities consistent with how a market participant would price the net risk exposure at the measurement date. Many of the contracts in our derivative portfolio are executed in liquid markets where price transparency exists. Our financial commodity derivatives are generally settled through a NYMEX or ICE clearing broker account with daily margin requirements. We validate our valuation inputs with third-party information and settlement prices from other sources, where available. We compute the fair value of our derivative portfolio by discounting the projected future cash flows from our derivative assets and liabilities to present value using interest-rate yields to calculate present-value discount factors derived from the implied forward SOFR, LIBOR or other yield curve, as appropriate. The fair value of our forward-starting interest-rate swaps is determined using financial models that incorporate the implied forward LIBOR yield curve for the same period as the future interest-rate swap settlements. We consider current market data in evaluating counterparties’, as well as our own, nonperformance risk, net of collateral, by using counterparty-specific bond yields. Although we use our best estimates to determine the fair value of the derivative contracts we have executed, the ultimate market prices realized could differ materially from our estimates. Fair Value Hierarchy - At each balance sheet date, we utilize a fair value hierarchy to classify fair value amounts recognized or disclosed in our financial statements based on the observability of inputs used to estimate such fair value. The levels of the hierarchy are described below: • Level 1 - fair value measurements are based on unadjusted quoted prices for identical securities in active markets. These balances are composed predominantly of exchange-traded derivative contracts for natural gas and crude oil. • Level 2 - fair value measurements are based on significant observable pricing inputs, including quoted prices for similar assets and liabilities in active markets and inputs from third-party pricing services supported with corroborative evidence. These balances are composed of exchange cleared derivatives to hedge natural gas basis and NGL price risk at certain market locations and over-the-counter interest-rate derivatives. • Level 3 - fair value measurements are based on inputs that may include one or more unobservable inputs, including internally developed commodity price curves that incorporate market data from broker quotes and third-party pricing services. These balances are composed predominantly of exchange-cleared and over-the-counter derivatives to hedge NGL price risk at certain market locations. These commodity derivatives are generally valued using forward quotes provided by third-party pricing services that are validated with other market data. We believe any measurement uncertainty at December 31, 2021, is immaterial as our Level 3 fair value measurements are based on unadjusted pricing information from broker quotes and third-party pricing services. Determining the appropriate classification of our fair value measurements within the fair value hierarchy requires management’s judgment regarding the degree to which market data is observable or corroborated by observable market data. We categorize derivatives based on the lowest level input that is significant to the fair value measurement in its entirety. See Note B for our fair value measurements disclosures. |
Cash and Cash Equivalents | Cash and Cash Equivalents - Cash equivalents consist of highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition - Revenues are recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. Our payment terms vary by customer and contract type, including requiring payment before products or services are delivered to certain customers. However, the term between customer prepayments, completion of our performance obligations, invoicing and receipt of payment due is not significant. Performance Obligations and Revenue Sources - Revenue sources are disaggregated in Note Q and are derived from commodity sales and services revenues, as described below: Commodity Sales (all segments) - We contract to deliver residue natural gas, condensate, unfractionated NGLs and/or NGL products to customers at a specified delivery point. Our sales agreements may be daily or longer-term contracts for a specified volume. We consider the sale and delivery of each unit of a commodity an individual performance obligation as the customer is expected to control, accept and benefit from each unit individually. We record revenue when the commodity is delivered to the customer as this represents the point in time when control of the product is transferred to the customer. Revenue is recorded based on the contracted selling price, which is generally index-based and settled monthly. Services Gathering only contracts ( Natural Gas Gathering and Processing segment ) - Under this type of contract, we charge fees for providing midstream services, which include gathering and treating our customer’s natural gas. Our performance obligation begins with delivery of raw natural gas to our system. This service is treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. Fee with POP contracts with producer take-in-kind rights ( Natural Gas Gathering and Processing segment ) - Under this type of contract, we do not control the stream of unprocessed natural gas that we receive at the wellhead due to the producer’s take-in-kind rights. We purchase a portion of the raw natural gas stream, charge fees for providing midstream services, which include gathering, treating, compressing and processing our customer’s natural gas. After performing these services, we return primarily the residue natural gas to the producer, sell the remaining commodities and remit a portion of the commodity sales proceeds to the producer less our contractual fees. Our performance obligation begins with delivery of raw natural gas to our system. This service is treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. Transportation and exchange contracts ( Natural Gas Liquids segment ) - Under this type of contract, we charge fees for providing midstream services, which may include a bundled combination of gathering, transporting and/or fractionation of our customer’s NGLs. Our performance obligation begins with delivery of unfractionated NGLs or NGL products to our system. These services represent a series of distinct services that are treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. For transportation services under a tariff on our NGL transportation pipelines, fees are recorded upon redelivery to our customer at the completion of the transportation services. Storage contracts ( Natural Gas Liquids and Natural Gas Pipelines segments ) - We reserve a stated storage capacity and inject/withdraw/store commodities for our customer. The capacity reservation and injection/withdrawal/storage services are considered a bundled service, as we integrate them into one stand-ready obligation provided on a daily basis over the life of the agreement and satisfied over time. Fixed capacity reservation fees are allocated and evenly recognized in revenue. Capacity reservation fees that vary based on a stated or implied economic index and correspond with the costs to provide our services are recognized in revenue as invoiced to our customers. For contracts that do not include a capacity reservation, transportation, injection and withdrawal fees are recognized in revenue as those services are provided and are dependent on the volume transported, injected or withdrawn by our customer, which is at our customer’s discretion. We use the output method based on the passage of time to measure satisfaction of the performance obligation associated with our daily stand-ready services. Firm service transportation contracts ( Natural Gas Pipelines segment ) - We reserve a stated transportation capacity and transport commodities for our customer. The capacity reservation and transportation services are considered a bundled service, as we integrate them into one stand-ready obligation provided on a daily basis over the life of the agreement and satisfied over time. Fixed capacity reservation fees are allocated and evenly recognized in revenue. Capacity reservation fees that vary based on a stated or implied economic index and correspond with the costs to provide our services are recognized in revenue based on a daily effective fee rate. If the capacity reservation fees vary solely as a contract feature, contract assets or liabilities are recorded for the difference between the amount recorded in revenue and the amount billed to the customer. Transportation fees are recognized in revenue as those services are provided and are dependent on the volume transported by our customer, which is at our customer’s discretion. We use the output method based on the passage of time to measure satisfaction of the performance obligation associated with our daily stand-ready services. Interruptible transportation contracts ( Natural Gas Pipelines segment ) - We agree to transport natural gas on our pipelines between the customer’s nominated receipt and delivery points if capacity is available after satisfying firm transportation service obligations. The transaction price is based on the transportation fees times the volumes transported. We use the output method based on delivery of product to the customer to measure satisfaction of the performance obligation. The total consideration for delivered volumes is recorded in revenue at the time of delivery, when the customer obtains control. Many of the contract types described above contain additional fees or charges payable by customers for nonperformance (e.g., minimum volume commitments or product specifications), which are considered to be variable consideration. These fees and charges are not recorded until it is probable that a significant reversal of the associated revenue will not occur. See Note P for our revenue disclosures. Contract Assets and Contract Liabilities - Contract assets and contract liabilities are recorded when the amount of revenue recognized from a contract with a customer differs from the amount billed to the customer and recorded in accounts receivable. Our contract asset balances at the beginning and end of the period primarily relate to our firm service transportation contracts with tiered rates. Our contract liabilities primarily represent deferred revenue on NGL storage contracts for which revenue is recognized over a one-year term, and deferred revenue on contributions in aid of construction received from customers for which revenue is recognized over the contract periods, which range from 5 to 10 years. |
Cost of Sales and Fuel | Cost of Sales and Fuel - Cost of sales and fuel primarily includes (i) the cost of purchased commodities, including NGLs, natural gas and condensate, (ii) fees incurred for third-party transportation, fractionation and storage of commodities, (iii) fuel and power costs incurred to operate our own facilities that gather, process, transport and store commodities, and (iv) an offset from the contractual fees deducted from the cost of purchased commodities under the contract types below: Fee with POP contracts with no producer take-in-kind rights (Natural Gas Gathering and Processing segment ) - We purchase raw natural gas and charge contractual fees for providing midstream services, which include gathering, treating, compressing and processing the producer’s natural gas. After performing these services, we sell the commodities and return a portion of the commodity sales proceeds to the producer less our contractual fees. Purchase with fee ( Natural Gas Liquids segment ) - |
Operations and Maintenance | Operations and Maintenance - Operations and maintenance primarily includes (i) payroll and benefit costs, (ii) third-party costs for operations, maintenance and integrity management, regulatory compliance and environmental and safety, and (iii) other business-related service costs. |
Accounts Receivable | Accounts Receivable - Accounts receivable represent valid claims against nonaffiliated customers for products sold or services rendered. We present accounts receivable net of an allowance for credit losses to reflect the net amount expected to be collected. We assess the creditworthiness of our counterparties on an ongoing basis and require security, including prepayments and other forms of collateral, when appropriate. Outstanding customer receivables are reviewed regularly for possible nonpayment indicators, and allowances for credit losses are recorded based upon management’s estimate of collectability, current conditions and supportable forecasts at each balance sheet date. At December 31, 2021, our allowance for credit losses was not material. |
Inventory | Inventory - The values of current NGLs and natural gas in storage are determined using the lower of weighted-average cost or net realizable value. Noncurrent NGLs and natural gas are classified as property and valued at cost. Materials and supplies are valued at average cost. Certain large equipment inventory, which will ultimately be included in property, plant and equipment when utilized, is included in other assets in our Consolidated Balance Sheets and is valued at weighted-average cost. |
Commodity Imbalances | Commodity Imbalances - Commodity imbalances represent amounts payable or receivable for NGL exchange contracts and natural gas pipeline imbalances and are valued at market prices. Under the majority of our NGL exchange agreements, we physically receive volumes of unfractionated NGLs, including the risk of loss and legal title to such volumes, from the exchange counterparty. In turn, we deliver NGL products back to the customer and charge them gathering, transportation and fractionation fees. To the extent that the volumes we receive under such agreements differ from those we deliver, we record a net exchange receivable or payable position with the counterparties. These net exchange receivables and payables are generally settled with movements of NGL products rather than with cash. Natural gas pipeline imbalances are settled in cash or in-kind, subject to the terms of the pipelines’ tariffs or by agreement. |
Derivatives and Risk Management | Derivatives and Risk Management - We utilize derivatives to reduce our market-risk exposure to commodity price and interest-rate fluctuations and to achieve more predictable cash flows. We record all derivative instruments at fair value, with the exception of normal purchases and normal sales transactions that are expected to result in physical delivery. Commodity price and interest-rate volatility may have a significant impact on the fair value of derivative instruments as of a given date. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. The table below summarizes the various ways in which we account for our derivative instruments and the impact on our Consolidated Financial Statements: Recognition and Measurement Accounting Treatment Balance Sheet Income Statement Normal purchases and - Fair value not recorded - Change in fair value not recognized in earnings Mark-to-market - Recorded at fair value - Change in fair value recognized in earnings Cash flow hedge - Recorded at fair value. The gain or loss on the - The gain or loss on the derivative instrument is reclassified out of accumulated other comprehensive income (loss) into earnings when the forecasted transaction affects earnings Fair value hedge - Recorded at fair value - The gain or loss on the derivative instrument is - Change in fair value of the hedged item is - Change in fair value of the hedged item is To reduce our exposure to fluctuations in natural gas, NGLs and condensate prices, we periodically enter into futures, forward purchases and sales, options or swap transactions in order to hedge anticipated purchases and sales of natural gas, NGLs and condensate. Interest-rate swaps are used from time to time to manage interest-rate risk. Under certain conditions, we designate our derivative instruments as a hedge of exposure to changes in fair values or cash flows. We formally document all relationships between hedging instruments and hedged items, as well as risk-management objectives and strategies for undertaking various hedge transactions, and methods for assessing and testing correlation and hedge effectiveness. We specifically identify the forecasted transaction that has been designated as the hedged item in a cash flow hedge relationship. We assess hedging relationships at the inception of the hedge and on an ongoing basis to determine whether the hedging relationship is, and is expected to remain, highly effective. We also document our normal purchases and normal sales transactions that we expect to result in physical delivery and that we elect to exempt from derivative accounting treatment. The realized revenues and purchase costs of our derivative instruments not considered held for trading purposes and derivatives that qualify as normal purchases or normal sales that are expected to result in physical delivery are reported on a gross basis. Cash flows from futures, forwards, options and swaps that are accounted for as hedges are included in the same category as the cash flows from the related hedged items in our Consolidated Statements of Cash Flows. See Notes B and C for disclosures of our fair value measurements and risk-management and hedging activities, respectively. |
Property, Plant and Equipment | Property, Plant and Equipment - Our properties are stated at cost, including AFUDC and capitalized interest. In some cases, the cost of regulated property retired or sold, plus removal costs, less salvage, is charged to accumulated depreciation. Gains and losses from sales or transfers of nonregulated properties or an entire operating unit or system of our regulated properties are recognized in income. Maintenance and repairs are charged directly to expense. The interest portion of AFUDC and capitalized interest represent the cost of borrowed funds used to finance construction activities for regulated and nonregulated projects, respectively. We capitalize interest costs during the construction or upgrade of qualifying assets. These costs are recorded as a reduction to interest expense. The equity portion of AFUDC represents the capitalization of the estimated average cost of equity used during the construction of major projects and is recorded in the cost of our regulated properties and as a credit to the allowance for equity funds used during construction. Our properties are depreciated using the straight-line method over their estimated useful lives. Generally, we apply depreciation rates to functional groups of property having similar economic lives. We periodically conduct depreciation studies to assess the economic lives of our assets. For our regulated assets, these depreciation studies are completed as a part of our rate proceedings or tariff filings, and the changes in economic lives, if applicable, are implemented prospectively when the new rates are approved. For our nonregulated assets, if it is determined that the estimated economic life changes, the changes are made prospectively. Changes in the estimated economic lives of our property, plant and equipment could have a material effect on our financial position or results of operations. Property, plant and equipment on our Consolidated Balance Sheets includes construction work in process for capital projects that have not yet been placed in service and therefore are not being depreciated. Assets are transferred out of construction work in process when they are substantially complete and ready for their intended use. See Note D for our property, plant and equipment disclosures. |
Impairment of Goodwill and Long-Lived Assets, including Intangible Assets | Impairment of Goodwill and Long-Lived Assets, Including Intangible Assets - We assess our goodwill for impairment at least annually as of July 1, unless events or changes in circumstances indicate an impairment may have occurred before that time. Our qualitative goodwill impairment analysis performed as of July 1, 2021, did not result in an impairment charge nor did our analysis reflect any reporting units at risk, and subsequent to that date, no event has occurred indicating that the implied fair value of each of our reporting units is less than the carrying value of its net assets. Goodwill - As part of our goodwill impairment test, we assess qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors and overall financial performance) to determine whether it was more likely than not that the fair value of each of our reporting units was less than their carrying amount. If further testing is necessary or a quantitative test is elected, we perform a Step 1 analysis. In a Step 1 analysis, an assessment is made by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying value of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. To estimate the fair value of our reporting units, we use two generally accepted valuation approaches, an income approach and a market approach, using assumptions consistent with a market participant’s perspective. Under the income approach, we use anticipated cash flows over a period of years plus a terminal value and discount these amounts to their present value using appropriate discount rates. Under the market approach, we apply EBITDA multiples to forecasted EBITDA. The multiples used are consistent with recent market transactions. The forecasted cash flows are based on probability weighted-average possible future cash flows for a reporting unit over a period of years. Long-lived assets - We assess our long-lived assets for impairment whenever events or changes in circumstances indicate that an asset’s carrying amount may not be recoverable. An impairment is indicated if the carrying amount of a long-lived asset exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If an impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. Investments in unconsolidated affiliates - The impairment test for equity-method investments considers whether the fair value of the equity investment as a whole, not the underlying net assets, has declined and whether that decline is other than temporary. Therefore, we periodically evaluate the amount at which we carry our equity-method investments to determine whether current events or circumstances warrant adjustments to our carrying values. See Notes D, E and M for our disclosures and related impairment charges related to long-lived assets, goodwill and intangible assets and investments in unconsolidated affiliates, respectively. |
Regulation | Regulation - Depending on the specific service provided, our natural gas transmission pipelines, NGL pipelines and certain natural gas storage facilities are subject to rate regulation and/or accounting requirements by one or more of the FERC, OCC, KCC and RRC. Accordingly, portions of our Natural Gas Liquids and Natural Gas Pipelines segments follow the accounting and reporting guidance for regulated operations. In our Consolidated Financial Statements and our Notes to Consolidated Financial Statements, regulated operations are defined pursuant to Financial Accounting Standards Board’s (FASB) Accounting Standards Codification 980, Regulated Operations. During the rate-making process for certain of our assets, regulatory authorities set the framework for what we can charge customers for our services and establish the manner that our costs are accounted for, including allowing us to defer recognition of certain costs and permitting recovery of the amounts through rates over time as opposed to expensing such costs as incurred. Certain examples of types of regulatory guidance include costs for fuel and losses, acquisition costs, contributions in aid of construction, charges for depreciation, and gains or losses on disposition of assets. This allows us to stabilize rates over time rather than passing such costs on to the customer for immediate recovery. Actions by regulatory authorities could have an effect on the amounts we may charge our customers. Any difference in the amount recoverable and the amount deferred is recorded as income or expense at the time of the regulatory action. A write-off of regulatory assets and costs not recovered may be required if all or a portion of the regulated operations have rates that are no longer (i) established by independent, third-party regulators and (ii) set at levels that will recover our costs when considering the demand and competition for our services. |
Retirement and Other Postretirement Employee Benefits | Retirement and Other Postretirement Employee Benefits - We have defined benefit retirement plans covering certain employees and former employees. We sponsor welfare plans that provide postretirement medical and life insurance benefits to certain employees hired prior to 2017 who retire with at least five years of service. The expense and liability related to these plans is calculated using statistical and other factors that attempt to anticipate future events. These factors include assumptions about the discount rate, expected return on plan assets, rate of future compensation increases, mortality and employment length. In determining the projected benefit obligations and costs, assumptions can change from period to period and may result in changes in the costs and liabilities we recognize. See Note K for our retirement and other postretirement employee benefits disclosures. |
Income Taxes | Income Taxes - Deferred income taxes are provided for the difference between the financial statement and income tax basis of assets and liabilities and carryforward items based on income tax laws and rates existing at the time the temporary differences are expected to reverse. Generally, the effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date of the rate change. We utilize a more-likely-than-not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position that is taken or expected to be taken in a tax return. We reflect penalties and interest as part of income tax expense as they become applicable for tax provisions that do not meet the more-likely-than-not recognition threshold and measurement attribute. For all periods presented, we had no uncertain tax positions that required the establishment of a material reserve. We utilize the “with-and-without” approach for intra-period tax allocation for purposes of allocating total tax expense (or benefit) for the year among the various financial statement components. We file numerous consolidated and separate income tax returns with federal tax authorities of the United States along with the tax authorities of several states. We are not under any United States federal audits or statute waivers at this time. See Note L for our income taxes disclosures. |
Asset Retirement Obligations | Asset Retirement Obligations - Asset retirement obligations represent legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal use of the asset. Certain of our natural gas gathering and processing, NGL and natural gas pipeline facilities are subject to agreements or regulations that give rise to our asset retirement obligations for removal or other disposition costs associated with retiring the assets in place upon the discontinued use of the assets. We recognize the fair value of a liability for an asset retirement obligation in the period when it is incurred if a reasonable estimate of the fair value can be made. We are not able to estimate reasonably the fair value of the asset retirement obligations for portions of our assets, primarily certain pipeline assets, because the settlement dates are indeterminable given our expected continued use of the assets with proper maintenance. We expect our pipeline assets, for which we are unable to estimate reasonably the fair value of the asset retirement obligation, will continue in operation as long as supply and demand for natural gas and NGLs exist. Based on the widespread use of natural gas for heating and cooking activities for residential users and electric-power generation for commercial users, as well as use of NGLs by the petrochemical industry, we expect supply and demand to exist for the foreseeable future. For our assets that we are able to make an estimate, the fair value of the liability is added to the carrying amount of the associated asset, and this additional carrying amount is depreciated over the life of the asset. The liability is accreted at the end of each period through charges to operating expense. If the obligation is settled for an amount other than the carrying amount of the liability, we will recognize a gain or loss on settlement. The depreciation and accretion expense are immaterial to our Consolidated Financial Statements. |
Contingencies | Contingencies - Our accounting for contingencies covers a variety of business activities, including contingencies for legal and environmental exposures. We accrue these contingencies when our assessments indicate that it is probable that a liability has been incurred or an asset will not be recovered and an amount can be estimated reasonably. We expense legal fees as incurred and base our legal liability estimates on currently available facts and our estimates of the ultimate outcome or resolution. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of a remediation feasibility study. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. Our expenditures for environmental evaluation, mitigation, remediation and compliance to date have not been significant in relation to our financial position or results of operations, and our expenditures related to environmental matters had no significant effect on earnings or cash flows during 2021, 2020 and 2019. Actual results may differ from our estimates resulting in an impact, positive or negative, on earnings. |
Share-Based Payments | Share-Based Payments - We expense the fair value of share-based payments net of estimated forfeitures. We estimate forfeiture rates based on historical forfeitures under our share-based payment plans. See Note J for our share-based payments disclosures. |
Earnings per Common Share | Earnings per Common Share - Basic EPS is calculated by dividing net income available to common shareholders by the daily weighted-average number of shares of common stock outstanding during the period, vested restricted and performance units that have been deferred and share awards deferred under the compensation plan for non-employee directors. Diluted EPS is calculated by dividing net income available to common shareholders by the daily weighted-average number of shares of common stock outstanding during the period plus potentially dilutive components. The dilutive components are calculated based on the dilutive effect for each quarter. For fiscal-year periods, the dilutive components for each quarter are averaged to arrive at the fiscal year-to-date dilutive component. See Note I for our EPS disclosures. |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting - Our chief operating decision-maker reviews the financial performance of each of our three segments, as well as our financial performance as a whole, on a regular basis. Adjusted EBITDA by segment is utilized in this evaluation. We believe this financial measure is useful to investors because it and similar measures are used by many companies in our industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare financial performance among companies in our industry. Adjusted EBITDA for each segment is defined as net income adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes, allowance for equity funds used during construction, noncash compensation expense, and other noncash items. This calculation may not be comparable with similarly titled measures of other companies. See Note Q for our segments disclosures. |
New Accounting Pronouncements | Except as discussed below, there have been no new accounting pronouncements that have become effective or have been issued that are of significance or potential significance to us. In January 2021, we adopted ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which simplifies certain concepts in Topic 740, Income Taxes. The impact of adopting this standard was not material. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements - For our fair value measurements, we utilize market prices, third-party pricing services, present value methods and standard option valuation models to determine the price we would receive from the sale of an asset or the transfer of a liability in an orderly transaction at the measurement date. We measure the fair value of a group of financial assets and liabilities consistent with how a market participant would price the net risk exposure at the measurement date. Many of the contracts in our derivative portfolio are executed in liquid markets where price transparency exists. Our financial commodity derivatives are generally settled through a NYMEX or ICE clearing broker account with daily margin requirements. We validate our valuation inputs with third-party information and settlement prices from other sources, where available. We compute the fair value of our derivative portfolio by discounting the projected future cash flows from our derivative assets and liabilities to present value using interest-rate yields to calculate present-value discount factors derived from the implied forward SOFR, LIBOR or other yield curve, as appropriate. The fair value of our forward-starting interest-rate swaps is determined using financial models that incorporate the implied forward LIBOR yield curve for the same period as the future interest-rate swap settlements. We consider current market data in evaluating counterparties’, as well as our own, nonperformance risk, net of collateral, by using counterparty-specific bond yields. Although we use our best estimates to determine the fair value of the derivative contracts we have executed, the ultimate market prices realized could differ materially from our estimates. Fair Value Hierarchy - At each balance sheet date, we utilize a fair value hierarchy to classify fair value amounts recognized or disclosed in our financial statements based on the observability of inputs used to estimate such fair value. The levels of the hierarchy are described below: • Level 1 - fair value measurements are based on unadjusted quoted prices for identical securities in active markets. These balances are composed predominantly of exchange-traded derivative contracts for natural gas and crude oil. • Level 2 - fair value measurements are based on significant observable pricing inputs, including quoted prices for similar assets and liabilities in active markets and inputs from third-party pricing services supported with corroborative evidence. These balances are composed of exchange cleared derivatives to hedge natural gas basis and NGL price risk at certain market locations and over-the-counter interest-rate derivatives. • Level 3 - fair value measurements are based on inputs that may include one or more unobservable inputs, including internally developed commodity price curves that incorporate market data from broker quotes and third-party pricing services. These balances are composed predominantly of exchange-cleared and over-the-counter derivatives to hedge NGL price risk at certain market locations. These commodity derivatives are generally valued using forward quotes provided by third-party pricing services that are validated with other market data. We believe any measurement uncertainty at December 31, 2021, is immaterial as our Level 3 fair value measurements are based on unadjusted pricing information from broker quotes and third-party pricing services. Determining the appropriate classification of our fair value measurements within the fair value hierarchy requires management’s judgment regarding the degree to which market data is observable or corroborated by observable market data. We categorize derivatives based on the lowest level input that is significant to the fair value measurement in its entirety. See Note B for our fair value measurements disclosures. |
DEBT DEBT (Policies)
DEBT DEBT (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instrument [Line Items] | |
Debt Policy | We amortize premiums, discounts and expenses incurred in connection with the issuance of long-term debt consistent with the terms of the respective debt instrument. |
EMPLOYEE BENEFIT PLANS EMPLOY_2
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Investment, Policy [Policy Text Block] | Plan Assets - Our investment strategy is to invest plan assets in accordance with sound investment practices that emphasize long-term fundamentals. The goal of this strategy is to maximize investment returns while managing risk in order to meet the plan’s current and projected financial obligations. The investment allocation for our other postretirement benefit plans is to target a diversified mix of approximately 30% fixed income and 70% equity securities. The investment allocation for our defined benefit pension plan follows a glide path approach of liability-driven investing that shifts a higher portfolio weighting to fixed income as the plan’s funded status increases. The purpose of liability-driven investing is to structure the asset portfolio to more closely resemble the pension liability and thereby more effectively hedge against changes in the liability. The plan’s current investments include a diverse blend of various domestic and international equities, investments in various classes of debt securities, real estate and hedge funds. The target allocation for the assets of our retirement plan as of December 31, 2021, is as follows: Domestic and international equities 42 % Long duration fixed income 30 % Return-seeking credit 11 % Hedge funds 10 % Real estate funds 7 % Total 100 % As part of our risk management for the plans, minimums and maximums have been set for each of the asset classes listed above. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Retirement and Other Postretirement Employee Benefits - We have defined benefit retirement plans covering certain employees and former employees. We sponsor welfare plans that provide postretirement medical and life insurance benefits to certain employees hired prior to 2017 who retire with at least five years of service. The expense and liability related to these plans is calculated using statistical and other factors that attempt to anticipate future events. These factors include assumptions about the discount rate, expected return on plan assets, rate of future compensation increases, mortality and employment length. In determining the projected benefit obligations and costs, assumptions can change from period to period and may result in changes in the costs and liabilities we recognize. See Note K for our retirement and other postretirement employee benefits disclosures. |
LEASES (Policies)
LEASES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | We lease certain buildings, warehouses, office space, pipeline capacity, land and equipment, including pipeline equipment, rail cars and information technology equipment. Our lease payments are generally straight-line and the exercise of lease renewal options, which vary in term, is at our sole discretion. We include renewal periods in a lease term if we are reasonably certain to exercise available renewal options. We apply the short-term policy election, which allows us to exclude from recognition leases with an initial term of 12 months or less. Our lease agreements do not include any residual value guarantees or material restrictive covenants. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The following tables set forth our recurring fair value measurements for the periods indicated: December 31, 2021 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 22,019 $ 172,833 $ 9,309 $ 204,161 $ (204,161) $ — Total derivative assets $ 22,019 $ 172,833 $ 9,309 $ 204,161 $ (204,161) $ — Derivative liabilities Commodity contracts Financial contracts $ (67,226) $ (112,922) $ (123,592) $ (303,740) $ 303,740 $ — Interest-rate contracts — (145,524) — (145,524) — (145,524) Total derivative liabilities $ (67,226) $ (258,446) $ (123,592) $ (449,264) $ 303,740 $ (145,524) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At December 31, 2021, we held no cash and posted $157.0 million of cash with various counterparties, including $99.6 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $57.4 million of cash collateral in excess of derivative net liability positions is included in other current assets in our Consolidated Balance Sheet. December 31, 2020 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 6,697 $ — $ 103,801 $ 110,498 $ (110,498) $ — Total derivative assets $ 6,697 $ — $ 103,801 $ 110,498 $ (110,498) $ — Derivative liabilities Commodity contracts Financial contracts $ (10,489) $ — $ (135,122) $ (145,611) $ 145,611 $ — Interest-rate contracts — (203,407) — (203,407) — (203,407) Total derivative liabilities $ (10,489) $ (203,407) $ (135,122) $ (349,018) $ 145,611 $ (203,407) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At December 31, 2020, we held no cash and posted $63.1 million of cash with various counterparties, including $35.1 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $28.0 million of cash collateral in excess of derivative net liability positions is included in other current assets in our Consolidated Balance Sheet. |
Reconciliation of Level 3 Fair Value Measurements | The following table sets forth a reconciliation of our Level 3 fair value measurements for the periods indicated: Years Ended December 31, Derivative Assets (Liabilities) 2021 2020 ( Thousands of dollars ) Net assets (liabilities) at beginning of period $ (31,321) $ 30,772 Total changes in fair value: Settlements included in net income (a) 31,003 (31,660) Transfers out of Level 3 derivatives (59,911) — New Level 3 derivatives included in other comprehensive income (loss) (b) (57,325) (36,568) Unrealized change included in other comprehensive income (loss) (b) 3,271 6,135 Net liabilities at end of period $ (114,283) $ (31,321) (a) - Included in commodity sales revenues/cost of sales and fuel in our Consolidated Statements of Income. (b) - Included in change in fair value of derivatives in our Consolidated Statements of Comprehensive Income. |
RISK MANAGEMENT AND HEDGING A_2
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivatives | The following table sets forth the fair values of our derivative instruments presented on a gross basis for the periods indicated: December 31, 2021 December 31, 2020 Location in our Consolidated Balance Sheets Assets (Liabilities) Assets (Liabilities) ( Thousands of dollars ) Derivatives designated as hedging instruments Commodity contracts (a) Financial contracts (b) $ 204,161 $ (303,740) $ 107,461 $ (142,573) Interest-rate contracts Other current liabilities — (145,524) — — Other deferred credits — — — (203,407) Total derivatives designated as hedging instruments 204,161 (449,264) 107,461 (345,980) Derivatives not designated as hedging instruments Commodity contracts (a) Financial contracts (b) — — 3,037 (3,038) Total derivatives not designated as hedging instruments — — 3,037 (3,038) Total derivatives $ 204,161 $ (449,264) $ 110,498 $ (349,018) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. (b) - At December 31, 2021, and December 31, 2020, our derivative net liability positions under master-netting arrangements for financial contracts were fully offset by cash collateral of $99.6 million and $35.1 million, respectively. |
Notional Amounts of Derivative Instruments | The following table sets forth the notional quantities for derivative instruments held for the periods indicated: December 31, 2021 December 31, 2020 Contract Net Purchased/Payor Derivatives designated as hedging instruments: (a) Cash flow hedges Fixed price -Natural gas ( Bcf ) Futures (32.3) (43.3) -Crude oil and NGLs ( MMBbl ) Futures (10.0) (4.6) Basis -Natural gas ( Bcf ) Futures (30.5) (43.3) Interest-rate contracts ( Billions of dollars ) Swaps $ 1.1 $ 1.1 |
Schedule of Cash Flow Hedging Instruments Effect on Comprehensive Income (Loss) | The following table sets forth the unrealized change in fair value of cash flow hedges in other comprehensive income (loss) for the periods indicated: Years Ended December 31, 2021 2020 2019 ( Thousands of dollars ) Commodity contracts $ (322,648) $ (5,699) $ 38,819 Interest-rate contracts 57,884 (208,616) (230,771) Total unrealized change in fair value of cash flow hedges in other comprehensive income (loss) $ (264,764) $ (214,315) $ (191,952) |
Schedule of Cash Flow Hedging Instruments Effect on Income | The following table sets forth the effect of cash flow hedges on net income for the periods indicated: Derivatives in Cash Flow Location of Gain (Loss) Reclassified from Years Ended December 31, 2021 2020 2019 ( Thousands of dollars ) Commodity contracts Commodity sales revenues $ (731,793) $ 85,436 $ 94,547 Cost of sales and fuel 473,612 (19,170) (44,202) Interest-rate contracts (a) Interest expense (39,952) (93,676) (23,230) Total change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives $ (298,133) $ (27,410) $ 27,115 (a) - The year ended December 31, 2020, includes a loss of $48.3 million on the settlement of $1.3 billion of interest-rate swaps used to hedge our LIBOR-based interest payments. |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment by Property Type | The following table sets forth our property, plant and equipment by property type, for the periods indicated: Estimated Useful December 31, December 31, ( Thousands of dollars ) Nonregulated Gathering pipelines and related equipment 5 to 40 $ 4,371,936 $ 4,143,752 Processing and fractionation and related equipment 3 to 40 5,356,508 5,084,802 Storage and related equipment 3 to 54 874,522 798,785 Transmission pipelines and related equipment 5 to 54 886,343 810,434 General plant and other 2 to 60 695,117 647,675 Construction work in process — 1,132,961 1,265,736 Regulated Storage and related equipment 5 to 25 9,197 9,180 Natural gas transmission pipelines and related equipment 5 to 77 1,660,034 1,569,268 NGL transmission pipelines and related equipment 5 to 88 8,595,968 8,423,544 General plant and other 2 to 50 73,449 72,535 Construction work in process — 164,504 247,224 Property, plant and equipment 23,820,539 23,072,935 Accumulated depreciation and amortization - nonregulated (2,885,020) (2,514,328) Accumulated depreciation and amortization - regulated (1,615,645) (1,403,679) Net property, plant and equipment $ 19,319,874 $ 19,154,928 |
Average Depreciation Rates for Regulated Property | The average depreciation rates for our regulated property are set forth, by segment, in the following table for the periods indicated: Years Ended December 31, 2021 2020 2019 Natural Gas Liquids 2.2% 2.2% 2.0% Natural Gas Pipelines 2.1% 2.1% 2.1% |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Segment | The following table sets forth our goodwill, by segment, for the periods indicated: December 31, December 31, ( Thousands of dollars ) Natural Gas Liquids $ 371,217 $ 371,217 Natural Gas Pipelines 156,375 156,375 Total goodwill $ 527,592 $ 527,592 |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets | The following table reflects the gross carrying amount and accumulated amortization of intangible assets for the periods presented: December 31, December 31, ( Thousands of dollars ) Gross intangible assets $ 381,435 $ 381,435 Accumulated amortization (145,732) (135,304) Net intangible assets $ 235,703 $ 246,131 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
Debt | The following table sets forth our consolidated debt for the periods indicated: December 31, December 31, (Thousands of dollars) Commercial paper outstanding $ — $ — Senior unsecured obligations: $700,000 at 4.25% due February 2022 — 541,877 $900,000 at 3.375% due October 2022 895,814 895,814 $425,000 at 5.0% due September 2023 425,000 425,000 $500,000 at 7.5% due September 2023 500,000 500,000 $500,000 at 2.75% due September 2024 500,000 500,000 $500,000 at 4.9% due March 2025 500,000 500,000 $400,000 at 2.2% due September 2025 387,000 387,000 $600,000 at 5.85% due January 2026 600,000 600,000 $500,000 at 4.0% due July 2027 500,000 500,000 $800,000 at 4.55% due July 2028 800,000 800,000 $100,000 at 6.875% due September 2028 100,000 100,000 $700,000 at 4.35% due March 2029 700,000 700,000 $750,000 at 3.4% due September 2029 714,251 714,251 $850,000 at 3.1% due March 2030 780,093 780,093 $600,000 at 6.35% due January 2031 600,000 600,000 $400,000 at 6.0% due June 2035 400,000 400,000 $600,000 at 6.65% due October 2036 600,000 600,000 $600,000 at 6.85% due October 2037 600,000 600,000 $650,000 at 6.125% due February 2041 650,000 650,000 $400,000 at 6.2% due September 2043 400,000 400,000 $700,000 at 4.95% due July 2047 689,006 689,006 $1,000,000 at 5.2% due July 2048 1,000,000 1,000,000 $750,000 at 4.45% due September 2049 672,530 713,676 $500,000 at 4.5% due March 2050 443,015 451,270 $300,000 at 7.15% due January 2051 300,000 300,000 Guardian Pipeline Weighted average 7.85% due December 2022 — 13,657 Total debt 13,756,709 14,361,644 Unamortized portion of terminated swaps 11,596 13,314 Unamortized debt issuance costs and discounts (124,855) (138,887) Current maturities of long-term debt (895,814) (7,650) Short-term borrowings (a) — — Long-term debt $ 12,747,636 $ 14,228,421 (a) - Individual issuances of commercial paper under our commercial paper program generally mature in 90 days or less. |
Aggregate maturities of long-term debt outstanding | The aggregate maturities of long-term debt outstanding and interest obligations on debt as of December 31, 2021, for the years 2022 through 2026 are shown below: Senior Interest Total (Millions of dollars) 2022 $ 895.8 $ 670.5 $ 1,566.3 2023 $ 925.0 $ 629.3 $ 1,554.3 2024 $ 500.0 $ 584.6 $ 1,084.6 2025 $ 887.0 $ 553.6 $ 1,440.6 2026 $ 600.0 $ 508.8 $ 1,108.8 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Quarterly dividends per share paid on common stock | The following table sets forth the quarterly dividends per share paid on our common stock in the periods indicated: Years Ended December 31, 2021 2020 2019 First Quarter $ 0.935 $ 0.935 $ 0.860 Second Quarter 0.935 0.935 0.865 Third Quarter 0.935 0.935 0.890 Fourth Quarter 0.935 0.935 0.915 Total $ 3.74 $ 3.74 $ 3.53 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Loss | The following table sets forth the balance in accumulated other comprehensive loss for the periods indicated: Risk- Retirement and Other Risk- Accumulated ( Thousands of dollars ) January 1, 2020 $ (233,520) $ (131,481) $ (8,999) $ (374,000) Other comprehensive loss before reclassifications (165,023) (40,341) (8,635) (213,999) Amounts reclassified to net income (c) 21,097 14,187 1,266 36,550 Other comprehensive loss (143,926) (26,154) (7,369) (177,449) December 31, 2020 (377,446) (157,635) (16,368) (551,449) Other comprehensive income (loss) before reclassifications (203,868) 31,897 3,088 (168,883) Amounts reclassified to net income (c) 228,999 18,079 1,903 248,981 Other comprehensive income 25,131 49,976 4,991 80,098 December 31, 2021 $ (352,315) $ (107,659) $ (11,377) $ (471,351) (a) - All amounts are presented net of tax. (b) - Includes amounts related to supplemental executive retirement plan. (c) - See Note C for details of amounts reclassified to net income for risk-management assets/liabilities and Note K for retirement and other postretirement benefit plan obligations. |
Schedule of Accumulated Other Comprehensive Loss for Risk-Management Assets/Liabilities [Table Text Block] | The following table sets forth information about the balance of accumulated other comprehensive loss at December 31, 2021, representing unrealized losses related to risk-management assets and liabilities: Risk- ( Thousands of dollars ) Commodity derivative instruments expected to be realized within the next 36 months (b) $ (76,942) Settled interest-rate swaps to be recognized over the life of the long-term, fixed-rate debt (c) (163,320) Interest-rate swaps with future settlement dates expected to be amortized over the life of long-term debt (112,053) Accumulated other comprehensive loss at December 31, 2021 $ (352,315) (a) - All amounts are presented net of tax. (b) - Based on commodity prices on December 31, 2021, we expect net losses of $76.8 million, net of tax, will be reclassified into earnings during the next 12 months. (c) - We expect net losses of $27.1 million, net of tax, will be reclassified into earnings during the next 12 months. |
EARNINGS PER SHARE EARNINGS P_2
EARNINGS PER SHARE EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following tables set forth the computation of basic and diluted EPS for the periods indicated: Year Ended December 31, 2021 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Net income available for common stock $ 1,498,606 446,403 $ 3.36 Diluted EPS Effect of dilutive securities — 1,000 Net income available for common stock and common stock equivalents $ 1,498,606 447,403 $ 3.35 Year Ended December 31, 2020 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Net income available for common stock $ 611,709 431,105 $ 1.42 Diluted EPS Effect of dilutive securities — 677 Net income available for common stock and common stock equivalents $ 611,709 431,782 $ 1.42 Year Ended December 31, 2019 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Net income available for common stock $ 1,277,477 413,560 $ 3.09 Diluted EPS Effect of dilutive securities — 1,884 Net income available for common stock and common stock equivalents $ 1,277,477 415,444 $ 3.07 |
SHARE-BASED PAYMENTS SHARE-BA_2
SHARE-BASED PAYMENTS SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restricted Stock Units Activity | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Activity | The following tables set forth activity and various statistics for our restricted stock unit awards: Number of Weighted Nonvested December 31, 2020 646,287 $ 63.85 Granted 417,212 $ 46.84 Released to participants (242,765) $ 51.57 Forfeited (40,797) $ 55.27 Nonvested December 31, 2021 779,937 $ 59.02 2021 2020 2019 Weighted-average grant date fair value (per share) $ 46.84 $ 76.49 $ 58.07 Fair value of units granted (thousands of dollars) $ 19,542 $ 16,552 $ 15,238 Grant date fair value of units vested (thousands of dollars) $ 12,519 $ 11,204 $ 10,691 |
Performance-Unit Activity | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Activity | The following tables set forth activity and various statistics related to the performance unit awards and the assumptions used in the valuations at the respective grant dates: Number of Weighted Nonvested December 31, 2020 834,246 $ 75.96 Granted 542,183 $ 62.03 Released to participants (311,907) $ 64.00 Forfeited (87,937) $ 68.37 Nonvested December 31, 2021 976,585 $ 72.73 2021 2020 2019 Volatility (a) 60.30% 21.70% 27.10% Dividend yield 8.13% 4.87% 5.05% Risk-free interest rate 0.21% 1.39% 2.47% (a) - Volatility was based on historical volatility over three years using daily stock price observations. 2021 2020 2019 Weighted-average grant date fair value (per share) $ 62.03 $ 88.43 $ 68.02 Fair value of units granted (thousands of dollars) $ 33,632 $ 25,028 $ 23,020 Grant date fair value of units vested (thousands of dollars) $ 19,962 $ 17,722 $ 15,018 |
EMPLOYEE BENEFIT PLANS EMPLOY_3
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension and postretirement benefit plans obligations and fair value of plan assets | The following table sets forth our retirement and other postretirement benefit plans benefit obligations and fair value of plan assets for the periods indicated: Retirement Benefits Other Postretirement Benefits December 31, December 31, 2021 2020 2021 2020 Change in benefit obligation ( Thousands of dollars ) Benefit obligation, beginning of period $ 583,072 $ 534,849 $ 54,515 $ 52,309 Service cost 8,314 8,154 421 460 Interest cost 16,900 18,318 1,454 1,771 Plan participants’ contributions — — 1,092 1,032 Actuarial loss (gain) (22,792) 37,951 (2,496) 2,860 Benefits paid (18,483) (16,200) (3,959) (3,917) Benefit obligation, end of period (b) 567,011 583,072 51,027 54,515 Change in plan assets Fair value of plan assets, beginning of period 379,092 346,792 20,874 39,060 Actual return on plan assets (a) 41,374 36,400 5,919 (15,699) Employer contributions 11,200 12,100 — — Plan participants’ contributions — — 1,092 1,032 Benefits paid (18,483) (16,200) (3,488) (3,519) Fair value of plan assets, end of period (c) 413,183 379,092 24,397 20,874 Balance at December 31 $ (153,828) $ (203,980) $ (26,630) $ (33,641) Current liabilities $ (5,219) $ (4,679) $ — $ — Noncurrent liabilities (148,609) (199,301) (26,630) (33,641) Balance at December 31 $ (153,828) $ (203,980) $ (26,630) $ (33,641) (a) - Other Postretirement Benefits for the year ended December 31, 2020, includes a $13.2 million tax loss incurred from the exit of an investment in an insurance contract. (b) - The benefit obligation for Retirement Benefits at December 31, 2021 and 2020, include the supplemental executive retirement plan obligation. (c) - Fair value of plan assets for Retirement Benefits exclude the assets of our supplemental executive retirement plan, which totaled $111.2 million and $116.2 million at December 31, 2021 and 2020, respectively, and are included in other assets on the Consolidated Balance Sheets. These assets are maintained in a rabbi trust and are not treated as assets of the supplemental executive retirement plan. |
Components of net periodic benefit cost for pension and postretirement benefit plans | The following table sets forth the components of net periodic benefit cost for our retirement and other postretirement benefit plans for the periods indicated: Retirement Benefits Other Postretirement Benefits Years Ended December 31, Years Ended December 31, 2021 2020 2019 2021 2020 2019 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 8,314 $ 8,154 $ 7,825 $ 421 $ 460 $ 468 Interest cost 16,900 18,318 20,528 1,454 1,771 2,038 Expected return on plan assets (25,109) (24,964) (23,600) (1,364) (2,894) (2,285) Amortization of prior service cost (credit) 114 114 — — — (227) Amortization of net loss 19,673 18,306 12,649 3,692 5 297 Net periodic benefit cost (income) $ 19,892 $ 19,928 $ 17,402 $ 4,203 $ (658) $ 291 |
Amounts recognized in other comprehensive income (loss) | The following table sets forth the amounts recognized in other comprehensive income (loss) related to our retirement and other postretirement benefits for the periods indicated: Retirement Benefits Other Postretirement Benefits Years Ended December 31, Years Ended December 31, 2021 2020 2019 2021 2020 2019 ( Thousands of dollars ) Net gain (loss) (a) $ 34,529 $ (31,016) $ (25,389) $ 7,052 $ (21,453) $ 700 Prior service cost — — (601) — — — Amortization of prior service cost (credit) (b) 114 114 — — — (227) Amortization of net loss (b) 19,673 18,306 12,649 3,692 5 297 Deferred income taxes (12,493) 2,897 3,068 (2,471) 4,933 (177) Total recognized in other comprehensive income (loss) $ 41,823 $ (9,699) $ (10,273) $ 8,273 $ (16,515) $ 593 (a) - Other Postretirement Benefits for the year ended December 31, 2020, includes a $13.2 million tax loss incurred from the exit of an investment in an insurance contract. (b) - These components are recognized in accumulated other comprehensive loss and are reclassified to other expense in our Consolidated Statements of Income, with related income tax benefits of $5.4 million, $4.2 million and $2.9 million reclassified to income tax expense for the years ended December 31, 2021, 2020 and 2019, respectively. |
Amounts in accumulated other comprehensive income (loss) | The table below sets forth the amounts in accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit expense for the periods indicated: Retirement Benefits Other Postretirement Benefits December 31, December 31, 2021 2020 2021 2020 ( Thousands of dollars ) Prior service cost $ (374) $ (487) $ — $ — Accumulated loss (a) (131,460) (185,662) (14,815) (25,558) Accumulated other comprehensive loss (131,834) (186,149) (14,815) (25,558) Deferred income taxes 36,759 49,251 3,852 6,322 Accumulated other comprehensive loss, net of tax $ (95,075) $ (136,898) $ (10,963) $ (19,236) (a) - Other Postretirement Benefits for the year ended December 31, 2020, includes a $13.2 million tax loss incurred from the exit of an investment in an insurance contract. |
Weighted-average assumptions used to determine benefit obligations and net periodic benefit costs | The following table sets forth the weighted-average assumptions used to determine benefit obligations for retirement and other postretirement benefits for the periods indicated: Retirement Benefits Other Postretirement Benefits December 31, December 31, 2021 2020 2021 2020 Discount rate 3.25% 3.00% 3.00% 2.75% Compensation increase rate 3.60% 3.60% NA NA The following table sets forth the weighted-average assumptions used to determine net periodic benefit costs for the periods indicated: Years Ended December 31, 2021 2020 2019 Discount rate - retirement plans 3.00% 3.50% 4.50% Discount rate - other postretirement plans 2.75% 3.50% 4.50% Expected long-term return on plan assets 7.00% 7.50% 7.50% Compensation increase rate 3.60% 3.70% 3.65% |
Assumed health care cost trend rates | The following table sets forth the assumed health care cost-trend rates for the periods indicated: 2021 2020 Health care cost-trend rate assumed for next year 6.50% 6.50% Rate to which the cost-trend rate is assumed to decline (the ultimate trend rate) 5.00% 5.00% Year that the rate reaches the ultimate trend rate 2025 2024 |
Schedule of allocation of plan assets | The target allocation for the assets of our retirement plan as of December 31, 2021, is as follows: Domestic and international equities 42 % Long duration fixed income 30 % Return-seeking credit 11 % Hedge funds 10 % Real estate funds 7 % Total 100 % As part of our risk management for the plans, minimums and maximums have been set for each of the asset classes listed above. The following tables set forth the plan assets by fair value category as of the measurement date for our defined benefit pension and other postretirement benefit plans: Pension Benefits December 31, 2021 Asset Category Level 1 Level 2 Level 3 Subtotal Measured at NAV (d) Total ( Thousands of dollars ) Investments: Equity securities $ 42 $ — $ — $ 42 $ — $ 42 Common/collective trusts Equity securities (a) — — — — 166,132 166,132 Real estate funds — — — — 30,491 30,491 Government obligations — — — — 49,444 49,444 Corporate obligations (b) — — — — 120,877 120,877 Short-term investments — — — — 4,243 4,243 Other investments (c) — — — — 41,954 41,954 Fair value of plan assets $ 42 $ — $ — $ 42 $ 413,141 $ 413,183 (a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category repre sen ts alternative investments in limited partnerships, which can be redeemed with a 30-day notice with no further restrictions. There are no unfunded capital commitments. These limited partnerships invest through multi-strategy programs in broadly diversified portfolios of private investment funds, hedge funds and/or separate accounts to seek equity-like returns with low market correlation, reduced volatility and limited risk. (d) - Plan asset investments measured at fair value using the net asset value per share. Pension Benefits December 31, 2020 Asset Category Level 1 Level 2 Level 3 Subtotal Measured at NAV (d) Total ( Thousands of dollars ) Investments: Equity securities $ 43 $ — $ — $ 43 $ — $ 43 Common/collective trusts Equity securities (a) — — — — 164,099 164,099 Real estate funds — — — — 24,134 24,134 Government obligations — — — — 45,237 45,237 Corporate obligations (b) — — — — 101,626 101,626 Short-term investments (e) — — — — 4,890 4,890 Other investments (c) — — — — 39,063 39,063 Fair value of plan assets $ 43 $ — $ — $ 43 $ 379,049 $ 379,092 (a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category represents alternative investments in limited partnerships, which can be redeemed with a 30-day notice with no further restrictions. There are no unfunded capital commitments. These limited partnerships invest through multi-strategy programs in broadly diversified portfolios of private investment funds, hedge funds and/or separate accounts to seek equity-like returns with low market correlation, reduced volatility and limited risk. (d) - Plan asset investments measured at fair value using the net asset value per share. (e) - The fair value of short term investments in the Bank of New York Mellon EB Temporary Investment Fund was previously reported in Level 2. We elected to consistently apply the practical expedient to all investments within common/collective trusts, and therefore, the fair value of this fund is now measured at net asset value per share and no longer classified in the fair value hierarchy. Other Postretirement Benefits December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a) $ 17,953 $ — $ — $ 17,953 Money market funds — 480 — 480 Municipal obligations 5,964 — — 5,964 Fair value of plan assets $ 23,917 $ 480 $ — $ 24,397 (a) - This category represents securities of the respective market sector from diverse industries. Other Postretirement Benefits December 31, 2020 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a)(b) $ 15,116 $ — $ — $ 15,116 Money market funds — 808 — 808 Municipal obligations (b) 4,950 — — 4,950 Fair value of plan assets $ 20,066 $ 808 $ — $ 20,874 (a) - This category represents securities of the respective market sector from diverse industries. (b) - Net proceeds of $16.2 million from the exit of an investment in an insurance contract were reinvested in various equity securities and municipal obligations. |
Pension benefits and postretirement benefit payments expected to be paid | The following table sets forth the defined benefit pension and other postretirement benefits payments expected to be paid in 2022 through 2031: Pension Other Postretirement Benefits to be paid in: ( Thousands of dollars ) 2022 $ 25,962 $ 3,387 2023 $ 26,756 $ 3,363 2024 $ 27,769 $ 3,302 2025 $ 28,759 $ 3,293 2026 $ 29,651 $ 3,220 2027 through 2031 $ 156,041 $ 15,339 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The following table sets forth our provision for income taxes for the periods indicated: Years Ended December 31, 2021 2020 2019 ( Thousands of dollars ) Current tax expense (benefit) Federal $ 2,897 $ 980 $ (1,278) State 9,544 1,797 963 Total current tax expense (benefit) 12,441 2,777 (315) Deferred tax expense Federal 433,469 154,068 327,806 State 38,588 32,662 44,923 Total deferred tax expense 472,057 186,730 372,729 Total provision for income taxes $ 484,498 $ 189,507 $ 372,414 |
Reconciliation of Income Tax Provision | The following table is a reconciliation of our income tax provision for the periods indicated: Years Ended December 31, 2021 2020 2019 ( Thousands of dollars ) Income before income taxes $ 1,984,204 $ 802,316 $ 1,650,991 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Provision for federal income taxes 416,683 168,486 346,708 State income taxes, net of federal benefit 40,092 13,580 34,545 Deferred tax rate change, inclusive of valuation allowance 6,350 20,879 11,340 Excess tax benefits from share-based compensation (1,968) (7,380) (20,983) Other, net (a) 23,341 (6,058) 804 Income tax provision $ 484,498 $ 189,507 $ 372,414 (a) The year ended December 31, 2021, includes $19.4 million impact from previously recognized gains on certain benefit plan investments. |
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities for the periods indicated: December 31, December 31, Deferred tax assets ( Thousands of dollars ) Employee benefits and other accrued liabilities $ 95,952 $ 96,741 Federal net operating loss 1,337,050 1,473,093 State net operating loss and benefits 216,181 258,929 Derivative instruments 118,063 134,499 Other 4,863 12,894 Total deferred tax assets 1,772,109 1,976,156 Valuation allowance for state net operating loss and tax credits Carryforward expected to expire prior to utilization (84,755) (121,212) Net deferred tax assets 1,687,354 1,854,944 Deferred tax liabilities Excess of tax over book depreciation 84,692 87,021 Investment in partnerships (a) 2,769,352 2,437,620 Total deferred tax liabilities 2,854,044 2,524,641 Net deferred tax assets (liabilities) $ (1,166,690) $ (669,697) (a) Due primarily to excess of tax over book depreciation. |
UNCONSOLIDATED AFFILIATES (Tabl
UNCONSOLIDATED AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Equity Method Investments | The following table sets forth our investments in unconsolidated affiliates for the periods indicated: Net December 31, December 31, ( Thousands of dollars ) Northern Border Pipeline 50% $ 283,170 $ 291,987 Overland Pass Pipeline 50% 403,011 409,573 Roadrunner 50% 70,777 66,794 Other (a) Various 40,655 36,678 Investments in unconsolidated affiliates (b) $ 797,613 $ 805,032 (a) - Year ended December 31, 2020, includes the impact of noncash impairment charges of $37.7 million related to the equity investments discussed below, offset partially by an acquisition of an additional equity interest for $20.0 million. (b) - Equity-method goodwill (Note A) was $16.5 million at December 31, 2021 and 2020. |
Equity In Net Earnings From Investments | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Equity Method Investments | The following table sets forth our equity in net earnings (loss) from investments for the periods indicated: Years Ended December 31, 2021 2020 2019 ( Thousands of dollars ) Northern Border Pipeline $ 64,470 $ 75,409 $ 68,871 Overland Pass Pipeline 19,434 38,618 63,698 Roadrunner 33,293 29,017 26,839 Other 5,323 197 (4,867) Equity in net earnings from investments $ 122,520 $ 143,241 $ 154,541 Impairment of equity investments $ — $ (37,730) $ — |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments for Firm Transportation, Storage Contracts and Capital Leases | The following table sets forth our firm transportation and storage contract payments for the periods indicated: Firm ( Millions of dollars ) 2022 $ 72.3 2023 63.1 2024 59.3 2025 53.9 2026 40.8 Thereafter 211.6 Total $ 501.0 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table sets forth the maturity of our lease liabilities as of December 31, 2021: Finance Operating ( Millions of dollars ) 2022 $ 4.7 $ 16.4 2023 4.7 13.9 2024 4.7 12.6 2025 5.4 11.2 2026 4.5 11.4 2027 and beyond 8.3 36.9 Total lease payments 32.3 102.4 Less: Interest 8.6 13.0 Present value of lease liabilities $ 23.7 $ 89.4 |
LeaseAssetsAndLiabilitiesInBalanceSheet [Table Text Block] | The following table sets forth information about our lease assets and liabilities included in our Consolidated Balance Sheet for the periods indicated: Leases Location in our Consolidated December 31, 2021 December 31, 2020 ( Thousands of dollars ) Assets Operating leases Other assets $ 89,558 $ 100,154 Finance lease Property, plant and equipment 29,962 28,286 Finance lease Accumulated depreciation (3,590) (2,451) Total leased assets $ 115,930 $ 125,989 Liabilities Current Operating leases Operating lease liability $ 13,783 $ 13,610 Finance lease Other current liabilities 2,584 2,153 Noncurrent Operating leases Operating lease liability 75,636 87,610 Finance lease Other deferred credits 21,082 22,143 Total lease liabilities $ 113,085 $ 125,516 The following table sets forth supplemental cash flow information related to our leases: Years Ended December 31, 2021 2020 ( Thousands of dollars ) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 15,690 $ 13,245 Financing cash flows for finance lease $ 2,307 $ 1,949 Right-of-use assets obtained in exchange for operating lease liabilities (noncash) (a) $ 1,150 $ 99,547 (a) - In December 2019, we entered into an operating lease for pipeline capacity with a lease term of 10 years that commenced January 1, 2020. In connection with this lease, we recognized an operating lease right-of-use asset and a lease liability with remaining balances of $69.0 million and $69.9 million, respectively, as of December 31, 2020. |
Lease, Cost [Table Text Block] | The following table sets forth information about our lease costs for the periods indicated: Years Ended December 31, Location in our Consolidated 2021 2020 ( Thousands of dollars ) Operating leases Operations and maintenance $ 17,747 $ 17,162 Finance lease Amortization of lease assets Depreciation and amortization 1,139 1,131 Interest on lease liabilities Interest expense 2,338 2,537 Total lease cost $ 21,224 $ 20,830 The following table sets forth information about our leases for the periods indicated: December 31, 2021 December 31, 2020 Weighted average remaining lease term (years) Operating leases 7.8 8.3 Finance lease 6.6 7.8 Weighted average discount rate (a) Operating leases 3.40% 3.20% Finance lease 9.60% 10.00% (a) - Our weighted-average discount rates represent the rate implicit in the lease or our incremental borrowing rate for a term equal to the remaining term of the lease. |
Finance Lease, Liability, Maturity [Table Text Block] | The following table sets forth the maturity of our lease liabilities as of December 31, 2021: Finance Operating ( Millions of dollars ) 2022 $ 4.7 $ 16.4 2023 4.7 13.9 2024 4.7 12.6 2025 5.4 11.2 2026 4.5 11.4 2027 and beyond 8.3 36.9 Total lease payments 32.3 102.4 Less: Interest 8.6 13.0 Present value of lease liabilities $ 23.7 $ 89.4 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table sets forth the balances in contract liabilities for the periods indicated: Contract Liabilities ( Millions of dollars ) Balance at January 1, 2020 $ 57.1 Revenue recognized included in beginning balance (c) (36.1) Net additions 20.4 Balance at December 31, 2020 (a) 41.4 Revenue recognized included in beginning balance (23.7) Net additions 33.8 Balance at December 31, 2021 (b) $ 51.5 (a) - Contract liabilities of $23.7 million and $17.7 million are included in other current liabilities and other deferred credits, respectively, in our Consolidated Balance Sheet. (b) - Contract liabilities of $35.3 million and $16.2 million are included in other current liabilities and other deferred credits, respectively, in our Consolidated Balance Sheet. (c) - Includes a contract settlement of revenue previously deferred. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table presents aggregate value allocated to unsatisfied performance obligations as of December 31, 2021, and the amounts we expect to recognize in revenue in future periods, related primarily to firm transportation and storage contracts with remaining contract terms ranging from one month to 22 years: Expected Period of Recognition in Revenue ( Millions of dollars ) 2022 $ 339.1 2023 288.2 2024 238.1 2025 162.7 2026 and beyond 781.3 Total estimated transaction price allocated to unsatisfied performance obligations $ 1,809.4 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segments | The following tables set forth certain selected financial information for our operating segments for the periods indicated: Year Ended December 31, 2021 Natural Gas Natural Gas Natural Gas Total ( Thousands of dollars ) NGL and condensate sales $ 2,821,175 $ 13,653,120 $ — $ 16,474,295 Residue natural gas sales 1,483,898 — 115,495 1,599,393 Gathering, processing and exchange services revenue 135,501 517,758 — 653,259 Transportation and storage revenue — 179,619 490,498 670,117 Other 20,965 41,376 910 63,251 Total revenues (c) 4,461,539 14,391,873 606,903 19,460,315 Cost of sales and fuel (exclusive of depreciation and operating costs) (3,226,078) (11,939,661) (11,236) (15,176,975) Operating costs (367,390) (528,084) (170,257) (1,065,731) Equity in net earnings from investments 3,757 21,000 97,763 122,520 Noncash compensation expense and other 17,299 18,511 4,637 40,447 Segment adjusted EBITDA $ 889,127 $ 1,963,639 $ 527,810 $ 3,380,576 Depreciation and amortization $ (260,011) $ (298,937) $ (58,702) $ (617,650) Investments in unconsolidated affiliates $ 27,018 $ 416,648 $ 353,947 $ 797,613 Total assets $ 6,768,955 $ 14,502,372 $ 2,143,307 $ 23,414,634 Capital expenditures $ 275,165 $ 306,949 $ 92,617 $ 674,731 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $2.4 billion, of which $2.2 billion related to revenues within the segment, and cost of sales and fuel of $607.5 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $394.2 million and cost of sales and fuel of $24.3 million. (c) - Intersegment revenues are primarily commodity sales which are based on the contracted selling price, which is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $2.9 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material. Year Ended December 31, 2021 Total Other and Total ( Thousands of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 16,474,295 $ (2,904,598) $ 13,569,697 Residue natural gas sales 1,599,393 — 1,599,393 Gathering, processing and exchange services revenue 653,259 — 653,259 Transportation and storage revenue 670,117 (13,121) 656,996 Other 63,251 (2,287) 60,964 Total revenues (a) $ 19,460,315 $ (2,920,006) $ 16,540,309 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (15,176,975) $ 2,920,320 $ (12,256,655) Operating costs $ (1,065,731) $ (1,357) $ (1,067,088) Depreciation and amortization $ (617,650) $ (4,051) $ (621,701) Equity in net earnings from investments $ 122,520 $ — $ 122,520 Investments in unconsolidated affiliates $ 797,613 $ — $ 797,613 Total assets $ 23,414,634 $ 206,979 $ 23,621,613 Capital expenditures $ 674,731 $ 22,123 $ 696,854 (a) - Noncustomer revenue for the year ended December 31, 2021, totaled $(565.0) million related primarily to losses from derivatives on commodity contracts. Year Ended December 31, 2020 Natural Gas Natural Gas Natural Gas Total ( Thousands of dollars ) NGL and condensate sales $ 889,388 $ 6,409,332 $ — $ 7,298,720 Residue natural gas sales 771,486 — 8,693 780,179 Gathering, processing and exchange services revenue 141,943 488,574 — 630,517 Transportation and storage revenue — 182,915 470,097 653,012 Other 17,304 9,192 1,192 27,688 Total revenues (c) 1,820,121 7,090,013 479,982 9,390,116 Cost of sales and fuel (exclusive of depreciation and operating costs) (843,976) (5,108,558) (6,809) (5,959,343) Operating costs (326,938) (412,900) (141,713) (881,551) Equity in net earnings (loss) from investments (1,123) 39,938 104,426 143,241 Noncash compensation expense and other 1,952 8,748 1,540 12,240 Segment adjusted EBITDA $ 650,036 $ 1,617,241 $ 437,426 $ 2,704,703 Depreciation and amortization $ (247,010) $ (271,900) $ (55,739) $ (574,649) Impairment charges $ (566,145) $ (78,785) $ — $ (644,930) Investments in unconsolidated affiliates $ 22,757 $ 423,494 $ 358,781 $ 805,032 Total assets $ 6,499,908 $ 13,636,109 $ 2,100,213 $ 22,236,230 Capital expenditures $ 446,142 $ 1,655,759 $ 71,918 $ 2,173,819 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $2.0 billion, of which $1.8 billion related to revenues within the segment, and cost of sales and fuel of $520.6 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $298.5 million and cost of sales and fuel of $30.4 million. (c) - Intersegment revenues are primarily commodity sales which are based on the contracted selling price, which is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $865.6 million. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material. Year Ended December 31, 2020 Total Other and Total ( Thousands of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 7,298,720 $ (820,851) $ 6,477,869 Residue natural gas sales 780,179 (10,860) 769,319 Gathering, processing and exchange services revenue 630,517 — 630,517 Transportation and storage revenue 653,012 (14,599) 638,413 Other 27,688 (1,564) 26,124 Total revenues (a) $ 9,390,116 $ (847,874) $ 8,542,242 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (5,959,343) $ 849,197 $ (5,110,146) Operating costs $ (881,551) $ (4,653) $ (886,204) Depreciation and amortization $ (574,649) $ (4,013) $ (578,662) Impairment charges $ (644,930) $ — $ (644,930) Equity in net earnings from investments $ 143,241 $ — $ 143,241 Investments in unconsolidated affiliates $ 805,032 $ — $ 805,032 Total assets $ 22,236,230 $ 842,524 $ 23,078,754 Capital expenditures $ 2,173,819 $ 21,562 $ 2,195,381 (a) - Noncustomer revenue for the year ended December 31, 2020, totaled $65.8 million related primarily to gains from derivatives on commodity contracts. Year Ended December 31, 2019 Natural Gas Natural Gas Natural Gas Total ( Thousands of dollars ) NGL and condensate sales $ 1,224,378 $ 7,910,833 $ — $ 9,135,211 Residue natural gas sales 966,149 — 1,244 967,393 Gathering, processing and exchange services revenue 164,299 414,238 — 578,537 Transportation and storage revenue — 197,483 466,266 663,749 Other 13,813 9,962 4,477 28,252 Total revenues (c) 2,368,639 8,532,516 471,987 11,373,142 Cost of sales and fuel (exclusive of depreciation and operating costs) (1,302,310) (6,690,918) (4,628) (7,997,856) Operating costs (368,352) (456,892) (157,230) (982,474) Equity in net earnings (loss) from investments (6,292) 65,123 95,710 154,541 Noncash compensation expense and other 10,965 15,936 2,977 29,878 Segment adjusted EBITDA $ 702,650 $ 1,465,765 $ 408,816 $ 2,577,231 Depreciation and amortization $ (219,519) $ (196,132) $ (57,250) $ (472,901) Investments in unconsolidated affiliates $ 34,426 $ 439,393 $ 388,025 $ 861,844 Total assets $ 6,795,744 $ 12,551,476 $ 2,094,072 $ 21,441,292 Capital expenditures $ 926,489 $ 2,796,604 $ 99,221 $ 3,822,314 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $1.4 billion, of which $1.2 billion related to revenues within the segment, and cost of sales and fuel of $496.8 million. (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $285.3 million and cost of sales and fuel of $20.0 million. (c) - Intersegment revenues are primarily commodity sales which are based on the contracted selling price, which is generally index-based and settled monthly, and for the Natural Gas Gathering and Processing segment totaled $1.2 billion. Intersegment revenues for the Natural Gas Liquids and Natural Gas Pipelines segments were not material. Year Ended December 31, 2019 Total Other and Total (Thousands of dollars) Reconciliations of total segments to consolidated NGL and condensate sales $ 9,135,211 $ (1,190,424) $ 7,944,787 Residue natural gas sales 967,393 (1,418) 965,975 Gathering, processing and exchange services revenue 578,537 — 578,537 Transportation and storage revenue 663,749 (15,646) 648,103 Other 28,252 (1,287) 26,965 Total revenues (a) $ 11,373,142 $ (1,208,775) $ 10,164,367 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (7,997,856) $ 1,209,816 $ (6,788,040) Operating costs $ (982,474) $ (390) $ (982,864) Depreciation and amortization $ (472,901) $ (3,634) $ (476,535) Equity in net earnings from investments $ 154,541 $ — $ 154,541 Investments in unconsolidated affiliates $ 861,844 $ — $ 861,844 Total assets $ 21,441,292 $ 370,829 $ 21,812,121 Capital expenditures $ 3,822,314 $ 26,035 $ 3,848,349 (a) - Noncustomer revenue for the year ended December 31, 2019, totaled $139.6 million related primarily to gains from derivatives on commodity contract s. Years Ended December 31, 2021 2020 2019 Reconciliation of net income to total segment adjusted EBITDA ( Thousands of dollars ) Net income $ 1,499,706 $ 612,809 $ 1,278,577 Add: Interest expense, net of capitalized interest 732,924 712,886 491,773 Depreciation and amortization 621,701 578,662 476,535 Income tax expense 484,498 189,507 372,414 Impairment charges — 644,930 — Noncash compensation expense 42,592 8,540 26,699 Other corporate costs and equity AFUDC (a) (845) (42,631) (68,767) Total segment adjusted EBITDA $ 3,380,576 $ 2,704,703 $ 2,577,231 (a) - The year ended December 31, 2020, includes corporate net gains of $22.3 million on extinguishment of debt related to open market repurchases. The year ended December 31, 2019, includes higher equity AFUDC related to our capital-growth projects compared with 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Entity [Line Items] | |||
Contract Liabilities, Contract Term | 5 to 10 years. | ||
Number Of Years Of Service Employees Must Work To Be Entitled To Postretirement Medical And Life Insurance Benefits | 5 years | ||
Impairment of equity investments | $ 0 | $ 37,730 | $ 0 |
Natural Gas Gathering And Processing | |||
Entity [Line Items] | |||
Impairment charges | 362,300 | ||
Goodwill, Impairment Loss | 153,400 | ||
Natural Gas Liquids | |||
Entity [Line Items] | |||
Impairment charges | $ 71,600 | ||
Venice Energy Services Company [Member] | Natural Gas Gathering And Processing | |||
Entity [Line Items] | |||
Net ownership percentage | 10.20% | ||
Impairment of equity investments | $ 30,500 | ||
Impairment of equity investments - goodwill | $ 22,300 | ||
Chisholm Pipeline Company [Member] | Natural Gas Liquids | |||
Entity [Line Items] | |||
Net ownership percentage | 50.00% | ||
Impairment of equity investments | $ 7,200 | ||
Northern Border Pipeline [Member] | |||
Entity [Line Items] | |||
Net ownership percentage | 50.00% | ||
Northern Border Pipeline [Member] | Natural Gas Pipelines | |||
Entity [Line Items] | |||
Net ownership percentage | 50.00% | ||
Roadrunner Gas Transmission [Member] | |||
Entity [Line Items] | |||
Net ownership percentage | 50.00% | ||
Roadrunner Gas Transmission [Member] | Natural Gas Pipelines | |||
Entity [Line Items] | |||
Net ownership percentage | 50.00% | ||
Overland Pass Pipeline Company [Member] | |||
Entity [Line Items] | |||
Net ownership percentage | 50.00% | ||
Overland Pass Pipeline Company [Member] | Natural Gas Liquids | |||
Entity [Line Items] | |||
Net ownership percentage | 50.00% |
FAIR VALUE MEASUREMENTS - Part
FAIR VALUE MEASUREMENTS - Part 1 (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash held - offsetting derivative net asset positions under master-netting arrangements | $ 0 | $ 0 |
Cash posted - total | 157,000 | 63,100 |
Cash posted - offsetting derivative net liability positions under master-netting arrangements | 99,600 | 35,100 |
Cash posted - remaining in excess of derivative net liability positions included in consolidated Balance Sheets | 57,400 | 28,000 |
Long-term Debt, Fair Value | 15,600,000 | 16,300,000 |
Long-term Debt | 13,600,000 | 14,200,000 |
Fair Value, Recurring [Member] | Gross Fair Value Measurement [Member] | ||
Derivative assets | ||
Derivative asset, fair value, gross | 204,161 | 110,498 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (449,264) | (349,018) |
Fair Value, Recurring [Member] | Gross Fair Value Measurement [Member] | Financial contracts | ||
Derivative assets | ||
Derivative asset, fair value, gross | 204,161 | 110,498 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (303,740) | (145,611) |
Fair Value, Recurring [Member] | Gross Fair Value Measurement [Member] | Interest Rate Contracts | ||
Derivative liabilities | ||
Interest-rate contracts | (145,524) | (203,407) |
Fair Value, Recurring [Member] | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative assets netting | (204,161) | (110,498) |
Derivative liabilities | ||
Derivative liabilities | (145,524) | (203,407) |
Derivative liabilities netting | 303,740 | 145,611 |
Fair Value, Recurring [Member] | Financial contracts | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative assets netting | (204,161) | (110,498) |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Derivative liabilities netting | 303,740 | 145,611 |
Fair Value, Recurring [Member] | Interest Rate Contracts | ||
Derivative liabilities | ||
Interest-rate contracts | (145,524) | (203,407) |
Derivative liabilities netting | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Derivative assets | ||
Derivative asset, fair value, gross | 22,019 | 6,697 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (67,226) | (10,489) |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Financial contracts | ||
Derivative assets | ||
Derivative asset, fair value, gross | 22,019 | 6,697 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (67,226) | (10,489) |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest Rate Contracts | ||
Derivative liabilities | ||
Interest-rate contracts | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative assets | ||
Derivative asset, fair value, gross | 172,833 | 0 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (258,446) | (203,407) |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Financial contracts | ||
Derivative assets | ||
Derivative asset, fair value, gross | 172,833 | 0 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (112,922) | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Contracts | ||
Derivative liabilities | ||
Interest-rate contracts | (145,524) | (203,407) |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Derivative assets | ||
Derivative asset, fair value, gross | 9,309 | 103,801 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (123,592) | (135,122) |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Financial contracts | ||
Derivative assets | ||
Derivative asset, fair value, gross | 9,309 | 103,801 |
Derivative liabilities | ||
Derivative liability, fair value, gross | (123,592) | (135,122) |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Contracts | ||
Derivative liabilities | ||
Interest-rate contracts | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Par_2
FAIR VALUE MEASUREMENTS - Part 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets And Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Net assets (liabilities) at beginning of period | $ (31,321) | $ 30,772 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements | 31,003 | (31,660) |
Transfers in or out of level 3 | (59,911) | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, New Level 3 Derivatives | (57,325) | (36,568) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Unrealized Change Included in Other Comprehensive Income (Loss) | 3,271 | 6,135 |
Net assets (liabilities) at end of period | $ (114,283) | $ (31,321) |
RISK MANAGEMENT AND HEDGING A_3
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES - Part 1 (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 204,161 | $ 110,498 |
(Liabilities) | (449,264) | (349,018) |
Derivative, Net Liability Position, Aggregate Fair Value | 0 | |
Cash posted - offsetting derivative net liability positions under master-netting arrangements | 99,600 | 35,100 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 204,161 | 107,461 |
(Liabilities) | (449,264) | (345,980) |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 3,037 |
(Liabilities) | 0 | (3,038) |
Natural Gas Pipelines | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 0 | 0 |
Other Current Liabilities [Member] | Interest Rate Contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
(Liabilities) | (145,524) | 0 |
Other Deferred Credits | Interest Rate Contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
(Liabilities) | 0 | (203,407) |
Fully Netted Assets/Liabilities | Commodity contracts | Financial contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 204,161 | 107,461 |
(Liabilities) | (303,740) | (142,573) |
Fully Netted Assets/Liabilities | Commodity contracts | Financial contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 3,037 |
(Liabilities) | $ 0 | $ (3,038) |
RISK MANAGEMENT AND HEDGING A_4
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES - Part 2 (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)BcfMMBbls | Dec. 31, 2020USD ($)MMBblsBcf | |
Derivative [Line Items] | ||||
Realized Loss on Settled Interest Rate Swaps Recorded in AOCI | $ 48.3 | $ 152.5 | $ 48.3 | |
Notional Amount Of Cash Flow Hedge Instruments Settled | $ 1,300 | 750 | 1,300 | |
Derivatives designated as hedging instruments | Interest Rate Contract | Purchased/Payor | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 1,100 | $ 1,100 | ||
Derivatives designated as hedging instruments | Future | Natural gas (Bcf) | Fixed price | Sold/Receiver | ||||
Derivative [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 32.3 | 43.3 | ||
Derivatives designated as hedging instruments | Future | Natural gas (Bcf) | Basis | Sold/Receiver | ||||
Derivative [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 30.5 | 43.3 | ||
Derivatives designated as hedging instruments | Future | Crude oils and NGLs (MMBbl) | Fixed price | Sold/Receiver | ||||
Derivative [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Volume | MMBbls | 10 | 4.6 | ||
Derivatives not designated as hedging instruments | Future | Crude oils and NGLs (MMBbl) | Fixed price | Purchased/Payor | ||||
Derivative [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Volume | MMBbls | 0.8 | |||
Derivatives not designated as hedging instruments | Future | Crude oils and NGLs (MMBbl) | Fixed price | Sold/Receiver | ||||
Derivative [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Volume | MMBbls | 0.8 | |||
Forecasted Debt Issuances [Member] | Cash Flow Hedging [Member] | Forward contracts | Interest Rate Contract | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 1,100 | $ 1,100 | ||
Notes Payable from Public Offering Due 2025, 2030 and 2050 [Member] | ||||
Derivative [Line Items] | ||||
Senior Notes, Noncurrent | $ 1,750 |
RISK MANAGEMENT AND HEDGING A_5
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES - Part 3 (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized change in fair value of cash flow hedges in other comprehensive income (loss) | $ (264,764) | $ (214,315) | $ (191,952) |
Change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives | (298,133) | (27,410) | 27,115 |
Commodity Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized change in fair value of cash flow hedges in other comprehensive income (loss) | (322,648) | (5,699) | 38,819 |
Commodity Contract | Commodity sales revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives | (731,793) | 85,436 | 94,547 |
Commodity Contract | Cost of sales and fuel | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives | 473,612 | (19,170) | (44,202) |
Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized change in fair value of cash flow hedges in other comprehensive income (loss) | 57,884 | (208,616) | (230,771) |
Interest Rate Contract | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of cash flow hedges reclassified from accumulated other comprehensive loss into net income on derivatives | $ (39,952) | $ (93,676) | $ (23,230) |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 23,820,539 | $ 23,072,935 | |
Accumulated depreciation and amortization | (4,500,665) | (3,918,007) | |
Net property, plant and equipment | 19,319,874 | 19,154,928 | |
Construction in Progress Expenditures Incurred but Not yet Paid | 130,500 | 151,700 | $ 544,800 |
Amortization expense for intangible assets | 10,400 | 10,800 | $ 11,900 |
Natural Gas Liquids | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charges | 71,600 | ||
Natural Gas Gathering And Processing | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charges | 362,300 | ||
Non-Regulated Property, Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization | (2,885,020) | (2,514,328) | |
Non-Regulated Property, Plant and Equipment [Member] | Gathering pipelines and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 4,371,936 | 4,143,752 | |
Non-Regulated Property, Plant and Equipment [Member] | Gathering pipelines and related equipment | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Non-Regulated Property, Plant and Equipment [Member] | Gathering pipelines and related equipment | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Non-Regulated Property, Plant and Equipment [Member] | Processing and fractionation and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 5,356,508 | 5,084,802 | |
Non-Regulated Property, Plant and Equipment [Member] | Processing and fractionation and related equipment | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Non-Regulated Property, Plant and Equipment [Member] | Processing and fractionation and related equipment | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Non-Regulated Property, Plant and Equipment [Member] | Storage and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 874,522 | 798,785 | |
Non-Regulated Property, Plant and Equipment [Member] | Storage and related equipment | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Non-Regulated Property, Plant and Equipment [Member] | Storage and related equipment | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 54 years | ||
Non-Regulated Property, Plant and Equipment [Member] | Transmission pipelines and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 886,343 | 810,434 | |
Non-Regulated Property, Plant and Equipment [Member] | Transmission pipelines and related equipment | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Non-Regulated Property, Plant and Equipment [Member] | Transmission pipelines and related equipment | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 54 years | ||
Non-Regulated Property, Plant and Equipment [Member] | General plant and other | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 695,117 | 647,675 | |
Non-Regulated Property, Plant and Equipment [Member] | General plant and other | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Non-Regulated Property, Plant and Equipment [Member] | General plant and other | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 60 years | ||
Non-Regulated Property, Plant and Equipment [Member] | Construction work in process | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 1,132,961 | 1,265,736 | |
Regulated Property Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization | $ (1,615,645) | $ (1,403,679) | |
Regulated Property Plant and Equipment [Member] | Natural Gas Liquids | |||
Property, Plant and Equipment [Line Items] | |||
Average Depreciation Rate | 2.20% | 2.20% | 2.00% |
Regulated Property Plant and Equipment [Member] | Natural Gas Pipelines | |||
Property, Plant and Equipment [Line Items] | |||
Average Depreciation Rate | 2.10% | 2.10% | 2.10% |
Regulated Property Plant and Equipment [Member] | Storage and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 9,197 | $ 9,180 | |
Regulated Property Plant and Equipment [Member] | Storage and related equipment | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Regulated Property Plant and Equipment [Member] | Storage and related equipment | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 25 years | ||
Regulated Property Plant and Equipment [Member] | Natural gas transmission pipelines and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 1,660,034 | 1,569,268 | |
Regulated Property Plant and Equipment [Member] | Natural gas transmission pipelines and related equipment | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Regulated Property Plant and Equipment [Member] | Natural gas transmission pipelines and related equipment | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 77 years | ||
Regulated Property Plant and Equipment [Member] | NGL transmission pipelines and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 8,595,968 | 8,423,544 | |
Regulated Property Plant and Equipment [Member] | NGL transmission pipelines and related equipment | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Regulated Property Plant and Equipment [Member] | NGL transmission pipelines and related equipment | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 88 years | ||
Regulated Property Plant and Equipment [Member] | General plant and other | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 73,449 | 72,535 | |
Regulated Property Plant and Equipment [Member] | General plant and other | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Regulated Property Plant and Equipment [Member] | General plant and other | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Regulated Property Plant and Equipment [Member] | Construction work in process | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 164,504 | $ 247,224 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Goodwill | $ 527,592 | $ 527,592 | |
Amortization expense for intangible assets | 10,400 | 10,800 | $ 11,900 |
Gross intangible assets and accumulated amortization [Abstract] | |||
Gross intangible assets | 381,435 | 381,435 | |
Accumulated amortization | (145,732) | (135,304) | |
Net intangible assets | 235,703 | 246,131 | |
Future amortization expense for next five years [Abstract] | |||
Future amortization expense, year one | 10,400 | ||
Future amortization expense, year two | 10,400 | ||
Future amortization expense, year three | 10,400 | ||
Future amortization expense, year four | 10,400 | ||
Future amortization expense, year five | 10,400 | ||
Natural Gas Liquids [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 371,217 | 371,217 | |
Natural Gas Pipelines | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 156,375 | 156,375 | |
Natural Gas Gathering and Processing | |||
Segment Reporting Information [Line Items] | |||
Goodwill, Impairment Loss | 153,400 | ||
Impairment of Intangible Assets (Excluding Goodwill) | $ 19,900 | ||
Natural Gas Gathering And Processing and Natural Gas Liquids [Member] | Minimum [Member] | |||
Segment Reporting Information [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Natural Gas Gathering And Processing and Natural Gas Liquids [Member] | Maximum [Member] | |||
Segment Reporting Information [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 40 years |
DEBT (Details)
DEBT (Details) $ in Thousands | Nov. 01, 2021USD ($)Rate | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($)Rate | Mar. 31, 2020USD ($)Rate | Sep. 30, 2019USD ($)Rate | Mar. 31, 2019USD ($)Rate | Dec. 31, 2021USD ($)Rate | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |||||||||
Total debt | $ 13,756,709 | $ 14,361,644 | |||||||
Unamortized portion of terminated swaps | (11,596) | (13,314) | |||||||
Unamortized debt issuance costs and discounts | (124,855) | (138,887) | |||||||
Current maturities of long-term debt | (895,814) | (7,650) | |||||||
Short-term borrowings | 0 | 0 | |||||||
Long-term debt | 12,747,636 | 14,228,421 | |||||||
Letters of Credit Outstanding, Amount | 7,700 | 7,700 | |||||||
Senior Note Covenant, Acceleration Of Indebtedness | $ 100,000 | ||||||||
Senior Note Covenant, Trustee Or Holders Percentage Required Upon Event Of Default | 25.00% | ||||||||
Long-term Debt, Repurchased Face Amount | $ 55,200 | 224,400 | |||||||
Repayments of Long-term Debt | $ 54,600 | 199,600 | |||||||
Gain (Loss) on Extinguishment of Debt | 22,300 | ||||||||
$2.5 Billion Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000 | ||||||||
Line of Credit Facility, Amount Outstanding | $ 0 | 0 | |||||||
Indebtedness to Adjusted EBITDA Maximum | 5 | ||||||||
Line of Credit Facility, Sublimit | $ 100,000 | ||||||||
Line of Credit Facility, Swingline Subfacility | 200,000 | ||||||||
Line Of Credit Facility, Option To Increase Borrowing Capacity | $ 3,500,000 | ||||||||
Line of Credit Facility, Annual Facility Fee | 0.15% | ||||||||
Indebtedness To Adjusted EBITDA Current | 4 | ||||||||
Debt Instrument, Covenant Description | Among other things, these covenants include maintaining a ratio of indebtedness to adjusted EBITDA (EBITDA, as defined in our $2.5 Billion Credit Agreement, adjusted for all noncash charges and increased for projected EBITDA from certain lender-approved capital expansion projects) of no more than 5.0 to 1 at December 31, 2021. Our $2.5 Billion Credit Agreement includes a $100 million sublimit for the issuance of standby letters of credit and a $200 million sublimit for swingline loans. Under the terms of our $2.5 Billion Credit Agreement, we may request an increase in the size of the facility to an aggregate of $3.5 billion by either commitments from new lenders or increased commitments from existing lenders. Our $2.5 Billion Credit Agreement contains provisions for an applicable margin rate and an annual facility fee, both of which adjust with changes in our credit ratings. Based on our current credit ratings, borrowings, if any, will accrue at LIBOR, or alternate benchmark rate, plus 110 basis points, and the annual facility fee is 15 basis points. At December 31, 2021, our ratio of indebtedness to adjusted EBITDA was 4.0 to 1, and we were in compliance with all covenants under our $2.5 Billion Credit Agreement. | ||||||||
$2.5 Billion Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.10% | ||||||||
Notes Payable from Public Offering Due 2026, 2031 and 2051 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes, Noncurrent | $ 1,500,000 | ||||||||
Proceeds from Debt, Net of Issuance Costs | 1,480,000 | ||||||||
Notes Payable from Public Offering Due 2025, 2030 and 2050 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes, Noncurrent | $ 1,750,000 | ||||||||
Proceeds from Debt, Net of Issuance Costs | 1,730,000 | ||||||||
Notes Payable from Public Offering Due 2024, 2029 and 2049 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes, Noncurrent | $ 2,000,000 | ||||||||
Proceeds from Debt, Net of Issuance Costs | 1,970,000 | ||||||||
Notes Payable from Public Offering Due 2029 and 2048 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes, Noncurrent | $ 1,250,000 | ||||||||
Proceeds from Debt, Net of Issuance Costs | $ 1,230,000 | ||||||||
Interest Obligations on Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
2022 | $ 670,500 | ||||||||
2023 | 629,300 | ||||||||
2024 | 584,600 | ||||||||
2025 | 553,600 | ||||||||
2026 | 508,800 | ||||||||
Total Aggregate Maturities of Long-term Debt Outstanding and Interest Obligations on Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
2022 | 1,566,300 | ||||||||
2023 | 1,554,300 | ||||||||
2024 | 1,084,600 | ||||||||
2025 | 1,440,600 | ||||||||
2026 | 1,108,800 | ||||||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
2022 | 895,800 | ||||||||
2023 | 925,000 | ||||||||
2024 | 500,000 | ||||||||
2025 | 887,000 | ||||||||
2026 | 600,000 | ||||||||
Guardian Pipeline [Member] | Notes Payables 1 due 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 0 | 13,657 | |||||||
Average interest rate (in hundredths) | Rate | 7.85% | ||||||||
Repayments of Long-term Debt | $ 11,700 | ||||||||
Subsidiary Issuer [Member] | 8.625% Notes Payables due 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rates (in hundredths) | Rate | 8.625% | ||||||||
Repayments of Long-term Debt | $ 500,000 | ||||||||
Subsidiary Issuer [Member] | 3.80% Notes Payable due 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Extinguishment of Debt, Amount | $ 300,000 | ||||||||
Interest rates (in hundredths) | Rate | 3.80% | ||||||||
Debt Instrument, Redemption Price | $ 308,000 | ||||||||
Gain (Loss) on Extinguishment of Debt | (2,700) | ||||||||
Subsidiary Issuer [Member] | 3.375% Notes Payable due 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 895,814 | 895,814 | |||||||
Debt Instrument, Face Amount | $ 900,000 | ||||||||
Interest rates (in hundredths) | Rate | 3.375% | ||||||||
Subsidiary Issuer [Member] | 5.0% Notes Payable due 2023 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 425,000 | 425,000 | |||||||
Debt Instrument, Face Amount | $ 425,000 | ||||||||
Interest rates (in hundredths) | Rate | 5.00% | ||||||||
Subsidiary Issuer [Member] | 4.9% Notes Payable due 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 500,000 | 500,000 | |||||||
Debt Instrument, Face Amount | $ 500,000 | ||||||||
Interest rates (in hundredths) | Rate | 4.90% | ||||||||
Subsidiary Issuer [Member] | 6.65% Notes Payable due 2036 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 600,000 | 600,000 | |||||||
Debt Instrument, Face Amount | $ 600,000 | ||||||||
Interest rates (in hundredths) | Rate | 6.65% | ||||||||
Subsidiary Issuer [Member] | 6.85% Notes Payable due 2037 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 600,000 | 600,000 | |||||||
Debt Instrument, Face Amount | $ 600,000 | ||||||||
Interest rates (in hundredths) | Rate | 6.85% | ||||||||
Subsidiary Issuer [Member] | 6.125% Notes Payable due 2041 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 650,000 | 650,000 | |||||||
Debt Instrument, Face Amount | $ 650,000 | ||||||||
Interest rates (in hundredths) | Rate | 6.125% | ||||||||
Subsidiary Issuer [Member] | 6.2% Notes Payable due 2043 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 400,000 | 400,000 | |||||||
Debt Instrument, Face Amount | $ 400,000 | ||||||||
Interest rates (in hundredths) | Rate | 6.20% | ||||||||
Parent Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Commercial Paper | $ 0 | 0 | |||||||
Parent Company | Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Covenant Description | Our senior notes are governed by indentures containing covenants, including among other provisions, limitations on our ability to place liens on our property or assets and to sell and leaseback our property. The indentures governing our 6.875% senior notes due 2028 include an event of default upon acceleration of other indebtedness of $15 million or more, and the indentures governing the remainder of our senior notes include an event of default upon the acceleration of other indebtedness of $100 million or more. Such events of default would entitle the trustee or the holders of 25% in aggregate principal amount of the outstanding senior notes to declare those senior notes immediately due and payable in full. The indenture for the 7.5% notes due 2023 also contains a provision that allows the holders of the notes to require ONEOK to offer to repurchase all or any part of their notes if a change of control and a credit rating downgrade occur at a purchase price of 101% of the principal amount, plus accrued and unpaid interest, if any. | ||||||||
Debt instrument call feature | We may redeem our senior notes, in whole or in part, at any time prior to their maturity at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. We may redeem the balance of our senior notes due 2022, 2023, 2024, 2025, 2026, 2027, 2028 (4.55%), 2029, 2030, 2031, 2041, 2043, 2047, 2048, 2049, 2050 and 2051 at a redemption price equal to the principal amount, plus accrued and unpaid interest, starting one to six months before the maturity date as stipulated in the respective contract terms. Our senior notes are senior unsecured obligations, ranking equally in right of payment with all of our existing and future unsecured senior indebtedness. | ||||||||
Parent Company | Term Loan Agreement due 2021 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | 1,500,000 | ||||||||
Repayments of Long-term Debt | 1,250,000 | 250,000 | |||||||
Parent Company | 4.25% Notes Payable due 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 0 | 541,877 | |||||||
Debt Instrument, Face Amount | $ 700,000 | $ 700,000 | |||||||
Interest rates (in hundredths) | Rate | 4.25% | 4.25% | |||||||
Repayments of Long-term Debt | $ 536,100 | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||||
Parent Company | 7.5% Notes Payable due 2023 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 500,000 | 500,000 | |||||||
Debt Instrument, Face Amount | $ 500,000 | ||||||||
Interest rates (in hundredths) | Rate | 7.50% | ||||||||
Senior Note Covenant, Redemption Price Upon Event Of Default | Rate | 101.00% | ||||||||
Parent Company | 2.75% Notes Payable due 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 500,000 | 500,000 | |||||||
Debt Instrument, Face Amount | $ 500,000 | $ 500,000 | |||||||
Interest rates (in hundredths) | Rate | 2.75% | 2.75% | |||||||
Parent Company | 2.2% Notes Payable due 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 387,000 | 387,000 | |||||||
Debt Instrument, Face Amount | $ 400,000 | $ 400,000 | |||||||
Interest rates (in hundredths) | Rate | 2.20% | 2.20% | |||||||
Parent Company | 5.85% Notes Payable due 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 600,000 | 600,000 | |||||||
Debt Instrument, Face Amount | $ 600,000 | $ 600,000 | |||||||
Interest rates (in hundredths) | Rate | 5.85% | 5.85% | |||||||
Parent Company | 4.0% Notes Payable due 2027 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 500,000 | 500,000 | |||||||
Debt Instrument, Face Amount | $ 500,000 | ||||||||
Interest rates (in hundredths) | Rate | 4.00% | ||||||||
Parent Company | 4.55% Notes Payable due 2028 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 800,000 | 800,000 | |||||||
Debt Instrument, Face Amount | $ 800,000 | ||||||||
Interest rates (in hundredths) | Rate | 4.55% | ||||||||
Parent Company | 6.875% Notes Payable due 2028 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 100,000 | 100,000 | |||||||
Debt Instrument, Face Amount | $ 100,000 | ||||||||
Interest rates (in hundredths) | Rate | 6.875% | ||||||||
Senior Note Covenant, Acceleration Of Indebtedness | $ 15,000 | ||||||||
Parent Company | 4.35% Notes Payable due 2029 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 700,000 | 700,000 | |||||||
Debt Instrument, Face Amount | $ 700,000 | $ 700,000 | |||||||
Interest rates (in hundredths) | Rate | 4.35% | 4.35% | |||||||
Parent Company | 3.4% Notes Payable due 2029 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 714,251 | 714,251 | |||||||
Debt Instrument, Face Amount | $ 750,000 | $ 750,000 | |||||||
Interest rates (in hundredths) | Rate | 3.40% | 3.40% | |||||||
Parent Company | 3.1% Notes Payable due 2030 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 780,093 | 780,093 | |||||||
Debt Instrument, Face Amount | $ 850,000 | $ 850,000 | |||||||
Interest rates (in hundredths) | Rate | 3.10% | 3.10% | |||||||
Parent Company | 6.35% Notes Payable due 2031 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 600,000 | 600,000 | |||||||
Debt Instrument, Face Amount | $ 600,000 | $ 600,000 | |||||||
Interest rates (in hundredths) | Rate | 6.35% | 6.35% | |||||||
Parent Company | 6.0% Notes Payable due 2035 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 400,000 | 400,000 | |||||||
Debt Instrument, Face Amount | $ 400,000 | ||||||||
Interest rates (in hundredths) | Rate | 6.00% | ||||||||
Parent Company | 4.95% Notes Payable due 2047 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 689,006 | 689,006 | |||||||
Debt Instrument, Face Amount | $ 700,000 | ||||||||
Interest rates (in hundredths) | Rate | 4.95% | ||||||||
Parent Company | 5.2% Notes Payable due 2048 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 1,000,000 | 1,000,000 | |||||||
Debt Instrument, Face Amount | $ 1,000,000 | ||||||||
Interest rates (in hundredths) | Rate | 5.20% | ||||||||
Parent Company | Note Payables, Additional Issuance, due 2048 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 550,000 | ||||||||
Interest rates (in hundredths) | Rate | 5.20% | ||||||||
Parent Company | 4.45% Notes Payable due 2049 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 672,530 | 713,676 | |||||||
Debt Instrument, Face Amount | $ 750,000 | $ 750,000 | |||||||
Interest rates (in hundredths) | Rate | 4.45% | 4.45% | |||||||
Parent Company | 4.5% Notes Payable due 2050 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 443,015 | 451,270 | |||||||
Debt Instrument, Face Amount | $ 500,000 | $ 500,000 | |||||||
Interest rates (in hundredths) | Rate | 4.50% | 4.50% | |||||||
Parent Company | 7.15% Notes Payable due 2051 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 300,000 | $ 300,000 | |||||||
Debt Instrument, Face Amount | $ 300,000 | $ 300,000 | |||||||
Interest rates (in hundredths) | Rate | 7.15% | 7.15% |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Issued During Period, Shares, New Issues | 29,900 | |||||||||||||||
Public Offering Price | $ 32 | |||||||||||||||
Dividends, Cash | $ 1,700,000 | $ 1,600,000 | $ 1,500,000 | |||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.935 | $ 0.915 | $ 0.890 | $ 0.865 | $ 0.860 | $ 3.74 | $ 3.74 | $ 3.53 | |
Stock Issued During Period, Value, New Issues | $ 937,000 | |||||||||||||||
Dividends, Preferred Stock, Cash | $ 1,100 | $ 1,100 | $ 1,100 | |||||||||||||
Preferred stock dividends paid | $ 1,100 | $ 1,100 | $ 1,100 | |||||||||||||
Issued Under Equity Agreement | ||||||||||||||||
Common Stock Sold Under Equity Distribution Agreement | 0 | |||||||||||||||
ONEOK [Member] | ||||||||||||||||
Aggregate Amount Of Common Shares Available For Issuance And Sale Under Equity Distribution Agreement | $ 1,000,000 | |||||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||||
Preferred Stock, Shares Outstanding | 0 | 0 | ||||||||||||||
Series E Preferred Stock [Member] | ||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 5.50% | |||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.935 | |||||||||||||||
Common Stock, Dividends, Per Share, Declared, Annualized | $ 3.74 | |||||||||||||||
Dividends Payable, Date of Record | Jan. 31, 2022 | |||||||||||||||
Preferred stock dividends paid | $ 300 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Risk management assets/liabilities - January 1 | $ (377,446) | $ (233,520) | |
Retirement and other postretirement benefit plan obligations - January 1 | (157,635) | (131,481) | |
Risk-management assets/liabilities of unconsolidated affiliates - January 1 | (16,368) | (8,999) | |
Accumulated other comprehensive loss - January 1 | (551,449) | (374,000) | |
Other comprehensive income (loss) before reclassification, risk-management assets/liabilities | (203,868) | (165,023) | $ (147,803) |
Other comprehensive (income) loss before reclassification, retirement and other postretirement benefit plan obligations | 31,897 | (40,341) | |
Other comprehensive income (loss) before reclassification, risk-management assets/liabilities of unconsolidated affiliates | 3,088 | (8,635) | |
Other comprehensive income (loss) before reclassifications | (168,883) | (213,999) | |
Other comprehensive income reclassification adjustment from AOCI for risk-management assets/liabilities, net of tax | 228,999 | 21,097 | (21,057) |
Other comprehensive income, retirement and other postretirement benefit plans, reclassification adjustment from AOCI, net of tax | 18,079 | 14,187 | |
Other comprehensive income, reclassification adjustment from AOCI for other comprehensive income attributable to unconsolidated affiliates, net of tax | 1,903 | 1,266 | |
Other comprehensive income, reclassification adjustment included in net income, net of tax | 248,981 | 36,550 | |
Other comprehensive income (loss), risk-management assets/liabilities, after reclassification adjustment, net of tax | 25,131 | (143,926) | |
Other comprehensive (income) loss, retirement and other postretirement benefit plans, after reclassification adjustment, net of tax | 49,976 | (26,154) | (9,696) |
Other comprehensive income (loss), risk-management assets/liabilities of unconsolidated affiliates, net of tax | 4,991 | (7,369) | |
Other comprehensive income (loss), net of tax | 80,098 | (177,449) | |
Risk management assets/liabilities - December 31 | (352,315) | (377,446) | (233,520) |
Retirement and other postretirement benefit plan obligations - December 31 | (107,659) | (157,635) | (131,481) |
Risk-management assets/liabilities of unconsolidated affiliates - December 31 | (11,377) | (16,368) | (8,999) |
Accumulated other comprehensive loss - December 31 | (471,351) | $ (551,449) | $ (374,000) |
Cash Flow Hedging [Member] | Commodity Contract | |||
Unrealized gain loss on cash flow hedges net of tax accumulated other comprehensive income loss | (76,942) | ||
Price risk cash flow hedge unrealized gain (loss) to be reclassified during next 12 months | (76,800) | ||
Cash Flow Hedging [Member] | Interest Rate Contract | |||
Amount of accumulated other comprehensive income (loss) attributable primarily to settled interest-rate swaps | (163,320) | ||
Amount of accumulated other comprehensive income (loss) attributable primarily to forward starting interest-rate swaps | (112,053) | ||
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net | $ (27,100) |
EARNINGS PER SHARE EARNINGS P_3
EARNINGS PER SHARE EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic EPS | |||
Net income available for common stock | $ 1,498,606 | $ 611,709 | $ 1,277,477 |
Shares | 446,403 | 431,105 | 413,560 |
Earnings per share, basic | $ 3.36 | $ 1.42 | $ 3.09 |
Diluted EPS | |||
Effect of dilutive securities | $ 0 | $ 0 | $ 0 |
Effect of dilutive securities, number of shares | 1,000 | 677 | 1,884 |
Net income available to common stockholders, Diluted | $ 1,498,606 | $ 611,709 | $ 1,277,477 |
Shares | 447,403 | 431,782 | 415,444 |
Earnings per share, diluted | $ 3.35 | $ 1.42 | $ 3.07 |
SHARE-BASED PAYMENTS SHARE-BA_3
SHARE-BASED PAYMENTS SHARE-BASED PAYMENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 8,500,000 | ||
Number of Shares Available for Issuance | 5,500,000 | ||
Forfeiture rate maximum (in hundredths) | 3.00% | ||
Allocated share-based compensation expense | $ 54,100 | $ 29,400 | $ 46,500 |
Tax Benefit | $ 14,400 | $ 14,100 | $ 31,700 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award Vesting Period | 3 years | ||
Nonvested Award, Cost Not yet Recognized, Amount | $ 19,300 | ||
Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | ||
Nonvested, number of units | 779,937 | 646,287 | |
Granted, units | 417,212 | ||
Released to participants, units | (242,765) | ||
Forfeited, units | (40,797) | ||
Nonvested, Weighted Average Grant Date Fair Value | $ 59.02 | $ 63.85 | |
Grants in Period, Weighted Average Grant Date Fair Value | 46.84 | $ 76.49 | $ 58.07 |
Vested in Period, Weighted Average Grant Date Fair Value | 51.57 | ||
Forfeitures, Weighted Average Grant Date Fair Value | $ 55.27 | ||
Granted in Period, Fair Value | $ 19,542 | $ 16,552 | $ 15,238 |
Vested in Period, Fair Value | $ 12,519 | $ 11,204 | $ 10,691 |
Performance-Unit Activity | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Award, Description | Upon vesting, a holder of outstanding performance units is entitled to receive a number of shares of our common stock equal to a percentage (0% to 200%) of the performance units granted, based on our total shareholder return over the vesting period, compared with the total shareholder return of a peer group of other energy companies over the same period. | ||
Award Vesting Period | 3 years | ||
Nonvested Award, Cost Not yet Recognized, Amount | $ 31,700 | ||
Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | ||
Nonvested, number of units | 976,585 | 834,246 | |
Granted, units | 542,183 | ||
Released to participants, units | (311,907) | ||
Forfeited, units | (87,937) | ||
Nonvested, Weighted Average Grant Date Fair Value | $ 72.73 | $ 75.96 | |
Grants in Period, Weighted Average Grant Date Fair Value | 62.03 | $ 88.43 | $ 68.02 |
Vested in Period, Weighted Average Grant Date Fair Value | 64 | ||
Forfeitures, Weighted Average Grant Date Fair Value | $ 68.37 | ||
Granted in Period, Fair Value | $ 33,632 | $ 25,028 | $ 23,020 |
Vested in Period, Fair Value | $ 19,962 | $ 17,722 | $ 15,018 |
Volatility | 60.30% | 21.70% | 27.10% |
Dividend yield | 8.13% | 4.87% | 5.05% |
Risk-free interest rate | 0.21% | 1.39% | 2.47% |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 11,600,000 | ||
Maximum allowable percentage of annual base pay withheld to purchase our common stock | 10.00% | ||
Purchase price percentage of the lower of its grant date or exercise date market price | 85.00% | ||
Employee participation in the plan (in hundredths) | 69.00% | 68.00% | 62.00% |
Shares sold under the Employee Stock Purchase Plan | 277,012 | 359,977 | 171,590 |
Weighted Average Share Price of Shares Sold Under the Employee Stock Purchase Plan (In Dollars per Share) | $ 38.98 | $ 27.78 | $ 51.24 |
Employee Stock Award Program [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 900,000 | ||
Allocated share-based compensation expense | $ 200 | $ 1,000 | |
Shares Awarded Under Employee Stock Award Program | 0 | 2,871 | 14,022 |
Share Price of Next Award to be Issued Under the Employee Stock Award Program | $ 78 | ||
Non-employees and Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum Value of Shares For Which Awards May Be Issued To A Participant During Any Year | $ 800 | ||
Granted, units | 0 | ||
Options, Outstanding, Number | 0 |
EMPLOYEE BENEFIT PLANS EMPLOY_4
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred income taxes | $ (14,929) | $ 7,812 | $ 2,910 |
Total recognized in other comprehensive income (loss) | 49,976 | (26,154) | (9,696) |
Other comprehensive income (loss), risk-management assets/liabilities of unconsolidated affiliates, net of tax | 4,991 | (7,369) | |
Accumulated other comprehensive loss, net of tax | $ (107,659) | $ (157,635) | $ (131,481) |
Expected long-term return on plan assets | 7.00% | 7.50% | 7.50% |
Compensation increase rate | 3.60% | 3.70% | 3.65% |
Reclassification Adjustment from AOCI, Tax, Retirement and Other Postretirement Benefit Plans, Gain (Loss) | $ 5,400 | $ 4,200 | $ 2,900 |
Deferred Compensation Plan Assets | 36,100 | 32,400 | |
Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit Obligation | 567,011 | 583,072 | 534,849 |
Service cost | 8,314 | 8,154 | 7,825 |
Interest cost | 16,900 | 18,318 | 20,528 |
Plan participants’ contributions | 0 | 0 | |
Actuarial loss (gain) | (22,792) | 37,951 | |
Benefits paid | (18,483) | (16,200) | |
Fair value of plan assets | 413,183 | 379,092 | 346,792 |
Actual return on plan assets (a) | 41,374 | 36,400 | |
Employer contributions | 11,200 | 12,100 | |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | (18,483) | (16,200) | |
Balance at December 31 | (153,828) | (203,980) | |
Current liabilities | (5,219) | (4,679) | |
Noncurrent liabilities | (148,609) | (199,301) | |
Balance at December 31 | (153,828) | (203,980) | |
Defined Benefit Plan, Accumulated Benefit Obligation | 541,800 | 548,200 | |
Expected return on plan assets | (25,109) | (24,964) | (23,600) |
Amortization of prior service cost (credit) | 114 | 114 | 0 |
Amortization of net loss | 19,673 | 18,306 | 12,649 |
Net periodic benefit cost (income) | 19,892 | 19,928 | 17,402 |
Net gain (loss) (a) | 34,529 | (31,016) | (25,389) |
Prior service cost | 0 | 0 | (601) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 114 | 114 | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 19,673 | 18,306 | 12,649 |
Deferred income taxes | (12,493) | 2,897 | 3,068 |
Total recognized in other comprehensive income (loss) | 41,823 | (9,699) | $ (10,273) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | (374) | (487) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (131,460) | (185,662) | |
Accumulated other comprehensive loss | (131,834) | (186,149) | |
Deferred income taxes | 36,759 | 49,251 | |
Accumulated other comprehensive loss, net of tax | $ (95,075) | $ (136,898) | |
Discount rate | 3.25% | 3.00% | |
Compensation increase rate | 3.60% | 3.60% | |
Discount Rates - Retirement and Other Postretirement Plans | 3.00% | 3.50% | 4.50% |
Domestic and international equities | 42.00% | ||
Long duration fixed income | 30.00% | ||
Return-seeking credit | 11.00% | ||
Hedge funds | 10.00% | ||
Real estate funds | 7.00% | ||
Total | 100.00% | ||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 25,962 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 26,756 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 27,769 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 28,759 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 29,651 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 156,041 | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (18,483) | $ (16,200) | |
Retirement Plan [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 42 | 43 | |
Retirement Plan [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 42 | 43 | |
Retirement Plan [Member] | Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 413,141 | 379,049 | |
Retirement Plan [Member] | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 42 | 43 | |
Retirement Plan [Member] | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 42 | 43 | |
Retirement Plan [Member] | Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Equity securities | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 42 | 43 | |
Retirement Plan [Member] | Equity securities | Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Defined Benefit Plan, Common Collective Trust, Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 166,132 | 164,099 | |
Retirement Plan [Member] | Defined Benefit Plan, Common Collective Trust, Equity Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Defined Benefit Plan, Common Collective Trust, Equity Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Defined Benefit Plan, Common Collective Trust, Equity Securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Defined Benefit Plan, Common Collective Trust, Equity Securities | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Defined Benefit Plan, Common Collective Trust, Equity Securities | Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 166,132 | 164,099 | |
Retirement Plan [Member] | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 30,491 | 24,134 | |
Retirement Plan [Member] | Real estate funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Real estate funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Real estate funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Real estate funds | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Real estate funds | Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 30,491 | 24,134 | |
Retirement Plan [Member] | Government obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49,444 | 45,237 | |
Retirement Plan [Member] | Government obligations | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Government obligations | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Government obligations | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Government obligations | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Government obligations | Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49,444 | 45,237 | |
Retirement Plan [Member] | Corporate obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 120,877 | 101,626 | |
Retirement Plan [Member] | Corporate obligations | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Corporate obligations | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Corporate obligations | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Corporate obligations | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Corporate obligations | Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 120,877 | 101,626 | |
Retirement Plan [Member] | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,243 | 4,890 | |
Retirement Plan [Member] | Short-term Investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Short-term Investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Short-term Investments | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Short-term Investments | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Short-term Investments | Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,243 | 4,890 | |
Retirement Plan [Member] | Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41,954 | 39,063 | |
Unfunded Capital Commitments | 0 | 0 | |
Retirement Plan [Member] | Other Investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Other Investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Other Investments | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Other Investments | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retirement Plan [Member] | Other Investments | Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 41,954 | $ 39,063 | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assumed Health Care Cost Trend Rate | 6.50% | 6.50% | |
Defined Benefit Plan Assumed Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% | |
Minimum Number Of Years Of Service For Certain Employees To Be Eligible To Participate In Welfare Plans That Provide Postretirement Medical And Life Insurance Benefits | 5 years | ||
Benefit Obligation | $ 51,027 | $ 54,515 | $ 52,309 |
Service cost | 421 | 460 | 468 |
Interest cost | 1,454 | 1,771 | 2,038 |
Plan participants’ contributions | 1,092 | 1,032 | |
Actuarial loss (gain) | (2,496) | 2,860 | |
Benefits paid | (3,959) | (3,917) | |
Fair value of plan assets | 24,397 | 20,874 | 39,060 |
Actual return on plan assets (a) | 5,919 | (15,699) | |
Employer contributions | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 1,092 | 1,032 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | (3,488) | (3,519) | |
Balance at December 31 | (26,630) | (33,641) | |
Current liabilities | 0 | 0 | |
Noncurrent liabilities | (26,630) | (33,641) | |
Balance at December 31 | (26,630) | (33,641) | |
Expected return on plan assets | (1,364) | (2,894) | (2,285) |
Amortization of prior service cost (credit) | 0 | 0 | (227) |
Amortization of net loss | 3,692 | 5 | 297 |
Net periodic benefit cost (income) | 4,203 | (658) | 291 |
Net gain (loss) (a) | 7,052 | (21,453) | 700 |
Prior service cost | 0 | 0 | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 0 | 0 | (227) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 3,692 | 5 | 297 |
Deferred income taxes | (2,471) | 4,933 | (177) |
Total recognized in other comprehensive income (loss) | 8,273 | (16,515) | $ 593 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 0 | 0 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (14,815) | (25,558) | |
Accumulated other comprehensive loss | (14,815) | (25,558) | |
Deferred income taxes | 3,852 | 6,322 | |
Accumulated other comprehensive loss, net of tax | $ (10,963) | $ (19,236) | |
Discount rate | 3.00% | 2.75% | |
Discount Rates - Retirement and Other Postretirement Plans | 2.75% | 3.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2025 | 2024 | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 3,387 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 3,363 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 3,302 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 3,293 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 3,220 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 15,339 | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (3,959) | $ (3,917) | |
Other Postretirement Benefits Plan [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23,917 | 20,066 | |
Other Postretirement Benefits Plan [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 480 | 808 | |
Other Postretirement Benefits Plan [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24,397 | 20,874 | |
Other Postretirement Benefits Plan [Member] | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17,953 | 15,116 | |
Other Postretirement Benefits Plan [Member] | Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Equity securities | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17,953 | 15,116 | |
Other Postretirement Benefits Plan [Member] | Money market funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Money market funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 480 | 808 | |
Other Postretirement Benefits Plan [Member] | Money market funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Money market funds | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 480 | 808 | |
Other Postretirement Benefits Plan [Member] | Insurance and group annuity contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets (a) | 13,200 | ||
NetProceedsFromExitOfAnInvestmentInAnInsuranceContract | 16,200 | ||
Other Postretirement Benefits Plan [Member] | Municipal Bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,964 | 4,950 | |
Other Postretirement Benefits Plan [Member] | Municipal Bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Municipal Bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Municipal Bonds | Subtotal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,964 | 4,950 | |
Supplemental Executive Retirement Plan Investments Included in Other Assets[Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Balance at December 31 | $ 111,200 | 116,200 | |
401(k) Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percent of employee matched of eligible compensation | 100.00% | ||
Percentage of Each Participants Eligible Compensation | 6.00% | ||
Contributions made to the Plan | $ 32,700 | $ 27,100 | $ 30,400 |
Profit-sharing contribution [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of Each Participants Eligible Compensation | 1.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | 21.00% | 21.00% |
Federal net operating loss | $ 1,337,050 | $ 1,473,093 | |
State net operating loss and benefits | 216,181 | 258,929 | |
Other tax expense from gains on investments | 19,400 | ||
Current Tax Expense (Benefit) | |||
Federal | 2,897 | 980 | $ (1,278) |
State | 9,544 | 1,797 | 963 |
Total current tax expense (benefit) | 12,441 | 2,777 | (315) |
Deferred Tax Expense | |||
Federal | 433,469 | 154,068 | 327,806 |
State | 38,588 | 32,662 | 44,923 |
Total deferred tax expense | 472,057 | 186,730 | 372,729 |
Income tax expense | 484,498 | 189,507 | 372,414 |
Income Tax Reconciliation | |||
Income before income taxes | $ 1,984,204 | $ 802,316 | $ 1,650,991 |
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
Provision for federal income taxes | $ 416,683 | $ 168,486 | $ 346,708 |
State income taxes, net of federal benefit | 40,092 | 13,580 | 34,545 |
Deferred tax rate change, inclusive of valuation allowance | 6,350 | 20,879 | 11,340 |
Effective income tax rate reconciliation, tax expense (benefit), share-based payment arrangement, amount | (1,968) | (7,380) | (20,983) |
Other, net | 23,341 | (6,058) | 804 |
Deferred Tax Assets | |||
Employee benefits and other accrued liabilities | 95,952 | 96,741 | |
Federal net operating loss | 1,337,050 | 1,473,093 | |
State net operating loss and benefits | 216,181 | 258,929 | |
Derivative instruments | 118,063 | 134,499 | |
Other | 4,863 | 12,894 | |
Total deferred tax assets | 1,772,109 | 1,976,156 | |
Carryforward expected to expire prior to utilization | (84,755) | (121,212) | |
Net deferred tax assets | 1,687,354 | 1,854,944 | |
Deferred Tax Liabilities | |||
Excess of tax over book depreciation | 84,692 | 87,021 | |
Deferred tax liabilities, investments | 2,769,352 | 2,437,620 | |
Total deferred tax liabilities | 2,854,044 | 2,524,641 | |
Deferred Tax Liabilities, Net | (1,166,690) | (669,697) | |
Valuation allowance, deferred tax asset, increase (decrease), amount | 6,400 | 20,900 | $ 11,300 |
Domestic Tax Authority | |||
Operating loss carryforwards | 6,400,000 | ||
State and Local Jurisdiction | Operating Loss Carryforwards, Subject to Expiration [Domain] | |||
Operating loss carryforwards | 1,900,000 | ||
State and Local Jurisdiction | Operating Loss Carryforwards, Indefinite Carryforward Period [Domain] | |||
Operating loss carryforwards | 2,800,000 | ||
Federal and State [Member] | |||
Federal net operating loss | 1,600,000 | 1,700,000 | |
Deferred Tax Assets | |||
Federal net operating loss | $ 1,600,000 | $ 1,700,000 |
UNCONSOLIDATED AFFILIATES (Deta
UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated affiliates | $ 797,613 | $ 805,032 | $ 861,844 |
Equity method goodwill | 16,500 | 16,500 | |
Equity in net earnings from investments | 122,520 | 143,241 | 154,541 |
Impairment of equity investments | 0 | (37,730) | 0 |
Payments to Acquire Equity Method Investments | 20,000 | ||
Natural Gas Gathering And Processing | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated affiliates | 27,018 | 22,757 | 34,426 |
Equity in net earnings from investments | 3,757 | (1,123) | (6,292) |
Natural Gas Liquids [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated affiliates | 416,648 | 423,494 | 439,393 |
Equity in net earnings from investments | 21,000 | 39,938 | 65,123 |
Unconsolidated Affiliates [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 62,800 | 135,400 | 164,700 |
Northern Border Pipeline [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net ownership percentage | 50.00% | ||
Investments in unconsolidated affiliates | $ 283,170 | 291,987 | |
Equity in net earnings from investments | 64,470 | 75,409 | 68,871 |
Payments to Acquire Equity Method Investments | $ 0 | 0 | 0 |
Distributions paid to us | 50,000 | ||
Cash Distribution Percentage of Equity Method Investment | 100.00% | ||
Overland Pass Pipeline Company [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net ownership percentage | 50.00% | ||
Investments in unconsolidated affiliates | $ 403,011 | 409,573 | |
Equity in net earnings from investments | $ 19,434 | 38,618 | 63,698 |
Cash Distribution Percentage of Equity Method Investment | 100.00% | ||
Overland Pass Pipeline Company [Member] | Natural Gas Liquids [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net ownership percentage | 50.00% | ||
Roadrunner Gas Transmission [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net ownership percentage | 50.00% | ||
Investments in unconsolidated affiliates | $ 70,777 | 66,794 | |
Equity in net earnings from investments | $ 33,293 | 29,017 | 26,839 |
Cash Distribution Percentage of Equity Method Investment | 100.00% | ||
Other Unconsolidated Affiliates [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated affiliates | $ 40,655 | 36,678 | |
Equity in net earnings from investments | $ 5,323 | $ 197 | $ (4,867) |
Venice Energy Services Company [Member] | Natural Gas Gathering And Processing | |||
Schedule of Equity Method Investments [Line Items] | |||
Net ownership percentage | 10.20% | ||
Impairment of equity investments | $ (30,500) | ||
ImpairmentOfEquityMethodInvestmentDifferenceBetweenCarryingAmountAndUnderlyingEquity | $ (22,300) | ||
Chisholm Pipeline Company [Member] | Natural Gas Liquids [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net ownership percentage | 50.00% | ||
Impairment of equity investments | $ (7,200) |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Dec. 31, 2021USD ($) |
Firm Transportation and Storage Contracts [Abstract] | |
2022 | $ 72.3 |
2023 | 63.1 |
2024 | 59.3 |
2025 | 53.9 |
2026 | 40.8 |
Thereafter | 211.6 |
Total | $ 501 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | |
Lessee, Lease, Details [Line Items] | |||
Finance lease assets - accumulated depreciation | $ (4,500,665) | $ (3,918,007) | |
Operating lease liability - current | 13,783 | 13,610 | |
Operating lease liability - noncurrent | 75,636 | 87,610 | |
Operating cash flows for operating leases | 15,690 | 13,245 | |
Financing cash flows for finance lease | 2,307 | 1,949 | |
Right-of-use assets obtained in exchange for operating lease liability (noncash) | 1,150 | 99,547 | |
Lease remaining balance related to lease entered in December 2019 [Member] | |||
Lessee, Lease, Details [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 10 years | ||
Operating lease assets - Other assets | 69,000 | ||
Present value of operating lease liabilities | 69,900 | ||
Components of Lease Cost [Member] | |||
Lessee, Lease, Details [Line Items] | |||
Operating leases - Operations and maintenance | 17,747 | 17,162 | |
Finance lease - Amortization of lease assets | 1,139 | 1,131 | |
Finance Lease - Interest on lease liabilities | 2,338 | 2,537 | |
Total lease cost | $ 21,224 | $ 20,830 | |
Weighted-Average Remaining Lease Term [Member] | |||
Lessee, Lease, Details [Line Items] | |||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 9 months 18 days | 8 years 3 months 18 days | |
Finance Lease, Weighted Average Remaining Lease Term | 6 years 7 months 6 days | 7 years 9 months 18 days | |
Weighted-Average Discount Rate [Member] | |||
Lessee, Lease, Details [Line Items] | |||
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | 3.20% | |
Finance Lease, Weighted Average Discount Rate, Percent | 9.60% | 10.00% | |
Maturity of Finance Lease Liability [Member] | |||
Lessee, Lease, Details [Line Items] | |||
2022 | $ 4,700 | ||
2023 | 4,700 | ||
2024 | 4,700 | ||
2025 | 5,400 | ||
2026 | 4,500 | ||
2027 and beyond | 8,300 | ||
Total lease payments | 32,300 | ||
Less: Interest | 8,600 | ||
Present value of finance lease liabilities | 23,700 | ||
Maturity of Operating Lease Liabilities [Member] | |||
Lessee, Lease, Details [Line Items] | |||
2022 | 16,400 | ||
2023 | 13,900 | ||
2024 | 12,600 | ||
2025 | 11,200 | ||
2026 | 11,400 | ||
2027 and beyond | 36,900 | ||
Total lease payments | 102,400 | ||
Less: Interest | 13,000 | ||
Present value of operating lease liabilities | 89,400 | ||
Lease Assets and Liabilities Included in the Consolidated Balance Sheet [Member] | |||
Lessee, Lease, Details [Line Items] | |||
Operating lease assets - Other assets | 89,558 | $ 100,154 | |
Finance lease assets - PPE | 29,962 | 28,286 | |
Finance lease assets - accumulated depreciation | (3,590) | (2,451) | |
Total leased assets | 115,930 | 125,989 | |
Operating lease liability - current | 13,783 | 13,610 | |
Finance lease liability - current | 2,584 | 2,153 | |
Operating lease liability - noncurrent | 75,636 | 87,610 | |
Finance lease liability - other deferred credits | 21,082 | 22,143 | |
Total lease liabilities | $ 113,085 | $ 125,516 |
REVENUES (Details)
REVENUES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Contract with Customer, Liability [Abstract] | |||
Contract with customer, liability | $ 51.5 | $ 41.4 | $ 57.1 |
Revenue recognized included in beginning balance | (23.7) | (36.1) | |
Net additions | 33.8 | 20.4 | |
Contract with customer, liability, current | 35.3 | 23.7 | |
Contract with customer, liability, noncurrent | 16.2 | $ 17.7 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 1,809.4 | ||
Revenue, Remaining Performance Obligation, Contract Term | 5 to 10 years. | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Axis]: 2022-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 339.1 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Axis]: 2023-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 288.2 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Axis]: 2024-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 238.1 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Axis]: 2025-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 162.7 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Axis]: 2026-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 781.3 | ||
Remaining Contract Terms [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Contract Term | one month to 22 years |
SEGMENTS (Details)
SEGMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Segment Reporting, Disclosure of Major Customers | 11.6 | 10 | 10 |
Operating costs | $ (1,067,088) | $ (886,204) | $ (982,864) |
Equity in net earnings (loss) from investments | 122,520 | 143,241 | 154,541 |
Depreciation and amortization | (621,701) | (578,662) | (476,535) |
Impairment charges | 0 | (644,930) | 0 |
Investments in unconsolidated affiliates (Note M) | 797,613 | 805,032 | 861,844 |
Noncash compensation expense | 42,592 | 8,540 | 26,699 |
Total assets | 23,621,613 | 23,078,754 | 21,812,121 |
Capital expenditures | 696,854 | 2,195,381 | 3,848,349 |
Operating income (loss) | 2,596,259 | 1,361,357 | 1,914,353 |
Net income | 1,499,706 | 612,809 | 1,278,577 |
Interest expense, net of capitalized interest | 732,924 | 712,886 | 491,773 |
Income tax expense | 484,498 | 189,507 | 372,414 |
Other corporate costs and equity AFUDC | (845) | (42,631) | (68,767) |
Revenues | 16,540,309 | 8,542,242 | 10,164,367 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (12,256,655) | (5,110,146) | (6,788,040) |
Gain (Loss) on Extinguishment of Debt | 22,300 | ||
Noncustomer [Domain] | |||
Segment Reporting Information [Line Items] | |||
Revenues | (565,000) | 65,800 | 139,600 |
Natural Gas Gathering And Processing | |||
Segment Reporting Information [Line Items] | |||
Operating costs | (367,390) | (326,938) | (368,352) |
Equity in net earnings (loss) from investments | 3,757 | (1,123) | (6,292) |
Noncash compensation expense and other | 17,299 | 1,952 | 10,965 |
Segment adjusted EBITDA | 889,127 | 650,036 | 702,650 |
Depreciation and amortization | (260,011) | (247,010) | (219,519) |
Impairment charges | (566,145) | ||
Investments in unconsolidated affiliates (Note M) | 27,018 | 22,757 | 34,426 |
Total assets | 6,768,955 | 6,499,908 | 6,795,744 |
Capital expenditures | 275,165 | 446,142 | 926,489 |
Revenues | 4,461,539 | 1,820,121 | 2,368,639 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (3,226,078) | (843,976) | (1,302,310) |
Natural Gas Gathering And Processing | Natural Gas Gathering and Processing Intersegment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,900,000 | 865,600 | 1,200,000 |
Natural Gas Liquids | |||
Segment Reporting Information [Line Items] | |||
Operating costs | (528,084) | (412,900) | (456,892) |
Equity in net earnings (loss) from investments | 21,000 | 39,938 | 65,123 |
Noncash compensation expense and other | 18,511 | 8,748 | 15,936 |
Segment adjusted EBITDA | 1,963,639 | 1,617,241 | 1,465,765 |
Depreciation and amortization | (298,937) | (271,900) | (196,132) |
Impairment charges | (78,785) | ||
Investments in unconsolidated affiliates (Note M) | 416,648 | 423,494 | 439,393 |
Total assets | 14,502,372 | 13,636,109 | 12,551,476 |
Capital expenditures | 306,949 | 1,655,759 | 2,796,604 |
Revenues | 14,391,873 | 7,090,013 | 8,532,516 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (11,939,661) | (5,108,558) | (6,690,918) |
Natural Gas Liquids | Natural Gas Liquids Regulated [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,400,000 | 2,000,000 | 1,400,000 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (607,500) | (520,600) | (496,800) |
Natural Gas Pipelines | |||
Segment Reporting Information [Line Items] | |||
Operating costs | (170,257) | (141,713) | (157,230) |
Equity in net earnings (loss) from investments | 97,763 | 104,426 | 95,710 |
Noncash compensation expense and other | 4,637 | 1,540 | 2,977 |
Segment adjusted EBITDA | 527,810 | 437,426 | 408,816 |
Depreciation and amortization | (58,702) | (55,739) | (57,250) |
Impairment charges | 0 | ||
Investments in unconsolidated affiliates (Note M) | 353,947 | 358,781 | 388,025 |
Total assets | 2,143,307 | 2,100,213 | 2,094,072 |
Capital expenditures | 92,617 | 71,918 | 99,221 |
Revenues | 606,903 | 479,982 | 471,987 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (11,236) | (6,809) | (4,628) |
Natural Gas Pipelines | Natural Gas Pipelines Regulated [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 394,200 | 298,500 | 285,300 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (24,300) | (30,400) | (20,000) |
Total Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating costs | (1,065,731) | (881,551) | (982,474) |
Equity in net earnings (loss) from investments | 122,520 | 143,241 | 154,541 |
Noncash compensation expense and other | 40,447 | 12,240 | 29,878 |
Segment adjusted EBITDA | 3,380,576 | 2,704,703 | 2,577,231 |
Depreciation and amortization | (617,650) | (574,649) | (472,901) |
Impairment charges | (644,930) | ||
Investments in unconsolidated affiliates (Note M) | 797,613 | 805,032 | 861,844 |
Total assets | 23,414,634 | 22,236,230 | 21,441,292 |
Capital expenditures | 674,731 | 2,173,819 | 3,822,314 |
Revenues | 19,460,315 | 9,390,116 | 11,373,142 |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (15,176,975) | (5,959,343) | (7,997,856) |
Other and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Operating costs | (1,357) | (4,653) | (390) |
Equity in net earnings (loss) from investments | 0 | 0 | 0 |
Depreciation and amortization | (4,051) | (4,013) | (3,634) |
Impairment charges | 0 | ||
Investments in unconsolidated affiliates (Note M) | 0 | 0 | 0 |
Total assets | 206,979 | 842,524 | 370,829 |
Capital expenditures | 22,123 | 21,562 | 26,035 |
Revenues | (2,920,006) | (847,874) | (1,208,775) |
Cost of sales and fuel (exclusive of depreciation and operating costs) | 2,920,320 | 849,197 | 1,209,816 |
Operating Segments [Member] | Natural Gas Liquids | Natural Gas Liquids Regulated [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,200,000 | 1,800,000 | 1,200,000 |
NGL and Condensate Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 13,569,697 | 6,477,869 | 7,944,787 |
NGL and Condensate Sales [Member] | Natural Gas Gathering And Processing | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,821,175 | 889,388 | 1,224,378 |
NGL and Condensate Sales [Member] | Natural Gas Liquids | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 13,653,120 | 6,409,332 | 7,910,833 |
NGL and Condensate Sales [Member] | Natural Gas Pipelines | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
NGL and Condensate Sales [Member] | Total Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 16,474,295 | 7,298,720 | 9,135,211 |
NGL and Condensate Sales [Member] | Other and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (2,904,598) | (820,851) | (1,190,424) |
Residue Natural Gas Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,599,393 | 769,319 | 965,975 |
Residue Natural Gas Sales [Member] | Natural Gas Gathering And Processing | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,483,898 | 771,486 | 966,149 |
Residue Natural Gas Sales [Member] | Natural Gas Liquids | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Residue Natural Gas Sales [Member] | Natural Gas Pipelines | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 115,495 | 8,693 | 1,244 |
Residue Natural Gas Sales [Member] | Total Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,599,393 | 780,179 | 967,393 |
Residue Natural Gas Sales [Member] | Other and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | (10,860) | (1,418) |
Gathering and Exchange Services Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 653,259 | 630,517 | 578,537 |
Gathering and Exchange Services Revenue [Member] | Natural Gas Gathering And Processing | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 135,501 | 141,943 | 164,299 |
Gathering and Exchange Services Revenue [Member] | Natural Gas Liquids | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 517,758 | 488,574 | 414,238 |
Gathering and Exchange Services Revenue [Member] | Natural Gas Pipelines | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Gathering and Exchange Services Revenue [Member] | Total Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 653,259 | 630,517 | 578,537 |
Gathering and Exchange Services Revenue [Member] | Other and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Transportation and Storage Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 656,996 | 638,413 | 648,103 |
Transportation and Storage Revenue [Member] | Natural Gas Gathering And Processing | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Transportation and Storage Revenue [Member] | Natural Gas Liquids | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 179,619 | 182,915 | 197,483 |
Transportation and Storage Revenue [Member] | Natural Gas Pipelines | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 490,498 | 470,097 | 466,266 |
Transportation and Storage Revenue [Member] | Total Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 670,117 | 653,012 | 663,749 |
Transportation and Storage Revenue [Member] | Other and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (13,121) | (14,599) | (15,646) |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 60,964 | 26,124 | 26,965 |
Other [Member] | Natural Gas Gathering And Processing | |||
Segment Reporting Information [Line Items] | |||
Revenues | 20,965 | 17,304 | 13,813 |
Other [Member] | Natural Gas Liquids | |||
Segment Reporting Information [Line Items] | |||
Revenues | 41,376 | 9,192 | 9,962 |
Other [Member] | Natural Gas Pipelines | |||
Segment Reporting Information [Line Items] | |||
Revenues | 910 | 1,192 | 4,477 |
Other [Member] | Total Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 63,251 | 27,688 | 28,252 |
Other [Member] | Other and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ (2,287) | $ (1,564) | $ (1,287) |