Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 22, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35081 | |
Entity Registrant Name | KINDER MORGAN, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0682103 | |
Entity Address, Address Line One | 1001 Louisiana Street | |
Entity Address, Address Line Two | Suite 1000 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 369-9000 | |
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 | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,264,582,583 | |
Entity Central Index Key | 0001506307 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class P Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class P Common Stock | |
Trading Symbol | KMI | |
Security Exchange Name | NYSE | |
1.500% Senior Notes due 2022 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.500% Senior Notes due 2022 | |
Trading Symbol | KMI 22 | |
Security Exchange Name | NYSE | |
2.250% Senior Notes due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.250% Senior Notes due 2027 | |
Trading Symbol | KMI 27 A | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | ||
Revenues | $ 5,211 | $ 3,106 |
Operating Costs, Expenses and Other | ||
Costs of sales | 2,009 | 663 |
Operations and maintenance | 514 | 620 |
Depreciation, depletion and amortization | 541 | 565 |
General and administrative | 156 | 153 |
Taxes, other than income taxes | 110 | 92 |
(Gain) loss on divestitures and impairments, net (Note 2) | (4) | 971 |
Other income, net | (1) | (1) |
Total Operating Costs, Expenses and Other | 3,325 | 3,063 |
Operating Income | 1,886 | 43 |
Other Income (Expense) | ||
Earnings from equity investments | 66 | 192 |
Amortization of excess cost of equity investments | (22) | (32) |
Interest, net | (377) | (436) |
Other, net (Note 2) | 223 | 2 |
Total Other Expense | (110) | (274) |
Income (Loss) Before Income Taxes | 1,776 | (231) |
Income Tax Expense | (351) | (60) |
Net Income (Loss) | 1,425 | (291) |
Net Income Attributable to Noncontrolling Interests | (16) | (15) |
Net Income (Loss) Attributable to Kinder Morgan, Inc. | $ 1,409 | $ (306) |
Class P Shares | ||
Basic Earnings (Loss) Per Share | $ 0.62 | $ (0.14) |
Diluted Earnings (Loss) Per Share | $ 0.62 | $ (0.14) |
Basic Weighted Average Shares Outstanding | 2,264 | 2,264 |
Diluted Weighted Average Shares Outstanding | 2,264 | 2,264 |
Services | ||
Revenues | ||
Revenues | $ 1,917 | $ 1,992 |
Commodity sales | ||
Revenues | ||
Revenues | 3,229 | 1,067 |
Other | ||
Revenues | ||
Revenues | $ 65 | $ 47 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 1,425 | $ (291) |
Other comprehensive (loss) income, net of tax | ||
Change in fair value of hedge derivatives (net of tax benefit (expense) of $47 and $(67), respectively) | (156) | 222 |
Reclassification of change in fair value of derivatives to net income (net of tax expense of $18 and $11, respectively) | 59 | 37 |
Foreign currency translation adjustments (net of tax expense of $— and $—, respectively) | 0 | 1 |
Benefit plan adjustments (net of tax expense of $4 and $3, respectively) | 17 | 11 |
Total other comprehensive (loss) income | (80) | 271 |
Comprehensive income (loss) | 1,345 | (20) |
Comprehensive income attributable to noncontrolling interests | (16) | (15) |
Comprehensive income (loss) attributable to Kinder Morgan, Inc. | $ 1,329 | $ (35) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Change in fair value of hedge derivatives, tax benefit (expense) | $ (47) | $ 67 |
Reclassification of change in fair value of derivatives to net income, tax benefit (expense) | (18) | (11) |
Foreign currency translation adjustments, tax benefit (expense) | 0 | 0 |
Benefit plan adjustments, tax expense | $ (4) | $ (3) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 1,377 | $ 1,184 |
Restricted deposits | 46 | 25 |
Accounts receivable | 1,425 | 1,293 |
Fair value of derivative contracts | 218 | 185 |
Inventories | 389 | 348 |
Other current assets | 279 | 168 |
Total current assets | 3,734 | 3,203 |
Property, plant and equipment, net | 35,605 | 35,836 |
Investments | 7,693 | 7,917 |
Goodwill | 19,851 | 19,851 |
Other intangibles, net | 2,396 | 2,453 |
Deferred income taxes | 213 | 536 |
Deferred charges and other assets | 1,716 | 2,177 |
Total Assets | 71,208 | 71,973 |
Current Liabilities | ||
Current portion of debt | 2,173 | 2,558 |
Accounts payable | 968 | 837 |
Accrued interest | 304 | 525 |
Accrued taxes | 205 | 267 |
Accrued contingencies | 157 | 307 |
Other current liabilities | 811 | 580 |
Total current liabilities | 4,618 | 5,074 |
Long-term debt | ||
Outstanding | 30,007 | 30,838 |
Debt fair value adjustments | 1,054 | 1,293 |
Total long-term debt | 31,061 | 32,131 |
Other long-term liabilities and deferred credits | 2,221 | 2,202 |
Total long-term liabilities and deferred credits | 33,282 | 34,333 |
Total Liabilities | 37,900 | 39,407 |
Commitments and contingencies (Notes 3 and 9) | ||
Redeemable Noncontrolling Interest | 705 | 728 |
Stockholders’ Equity | ||
Class P shares, $0.01 par value, 4,000,000,000 shares authorized, 2,264,470,730 and 2,264,257,336 shares, respectively, issued and outstanding | 23 | 23 |
Additional paid-in capital | 41,775 | 41,756 |
Accumulated deficit | (9,124) | (9,936) |
Accumulated other comprehensive loss | (487) | (407) |
Total Kinder Morgan, Inc.’s stockholders’ equity | 32,187 | 31,436 |
Noncontrolling interests | 416 | 402 |
Total Stockholders’ Equity | 32,603 | 31,838 |
Total Liabilities, Redeemable Noncontrolling Interest and Stockholders’ Equity | $ 71,208 | $ 71,973 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Stockholders’ Equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 4,000,000,000 | 4,000,000,000 |
Common stock, shares issued (in shares) | 2,264,470,730 | 2,264,257,336 |
Common stock, shares outstanding (in shares) | 2,264,470,730 | 2,264,257,336 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 1,425 | $ (291) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation, depletion and amortization | 541 | 565 |
Deferred income taxes | 347 | (69) |
Amortization of excess cost of equity investments | 22 | 32 |
(Gain) loss on divestitures and impairments, net (Note 2) | (4) | 971 |
Gain from sale of interest in equity investment (Note 2) | (206) | 0 |
Earnings from equity investments | (66) | (192) |
Distributions from equity investment earnings | 184 | 152 |
Changes in components of working capital | ||
Accounts receivable | (122) | 222 |
Inventories | (47) | 59 |
Other current assets | 4 | 50 |
Accounts payable | 26 | (200) |
Accrued interest, net of interest rate swaps | (204) | (202) |
Accrued taxes | (63) | (59) |
Other current liabilities | 157 | (131) |
Rate reparations, refunds and other litigation reserve adjustments | (144) | 10 |
Other, net | 23 | (24) |
Net Cash Provided by Operating Activities | 1,873 | 893 |
Cash Flows From Investing Activities | ||
Capital expenditures | (267) | (440) |
Proceeds from sales of investments | 413 | 907 |
Contributions to investments | (22) | (151) |
Distributions from equity investments in excess of cumulative earnings | 18 | 41 |
Other, net | (12) | (22) |
Net Cash Provided by Investing Activities | 130 | 335 |
Cash Flows From Financing Activities | ||
Issuances of debt | 3,110 | 2,125 |
Payments of debt | (4,268) | (1,969) |
Debt issue costs | (10) | (7) |
Dividends | (597) | (569) |
Repurchases of shares | 0 | (50) |
Contributions from investment partner and noncontrolling interests | 3 | 5 |
Distributions to investment partner | (23) | (18) |
Distributions to noncontrolling interests | (2) | (3) |
Other, net | (2) | (1) |
Net Cash Used in Financing Activities | (1,789) | (487) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Deposits | 0 | (8) |
Net Increase in Cash, Cash Equivalents and Restricted Deposits | 214 | 733 |
Cash, Cash Equivalents, and Restricted Deposits, beginning of period | 1,209 | 209 |
Cash and Cash Equivalents, beginning of period | 1,184 | 185 |
Restricted Deposits, beginning of period | 25 | 24 |
Cash and Cash Equivalents, end of period | 1,377 | 360 |
Restricted Deposits, end of period | 46 | 582 |
Cash, Cash Equivalents, and Restricted Deposits, end of period | 1,423 | 942 |
Non-cash Investing and Financing Activities | ||
ROU assets and operating lease obligations recognized | 7 | 14 |
Increase in property, plant and equipment from both accruals and contractor retainage | 41 | |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid during the period for interest (net of capitalized interest) | 589 | 661 |
Cash paid during the period for income taxes, net | $ 1 | $ 134 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Stockholders’ equity attributable to KMI | Non-controlling interests |
Balance at Dec. 31, 2019 | $ 34,086 | $ 23 | $ 41,745 | $ (7,693) | $ (333) | $ 33,742 | $ 344 |
Balance (shares) at Dec. 31, 2019 | 2,265 | ||||||
Repurchases of shares | (50) | (50) | (50) | ||||
Repurchases of shares (shares) | (4) | ||||||
Restricted shares | 18 | 18 | 18 | ||||
Net income (loss) | (291) | (306) | (306) | 15 | |||
Distributions | (3) | 0 | (3) | ||||
Contributions | 2 | 0 | 2 | ||||
Dividends | (569) | (569) | (569) | ||||
Other comprehensive income (loss) | 271 | 271 | 271 | ||||
Balance at Mar. 31, 2020 | 33,464 | $ 23 | 41,713 | (8,568) | (62) | 33,106 | 358 |
Balance (shares) at Mar. 31, 2020 | 2,261 | ||||||
Balance at Dec. 31, 2020 | 31,838 | $ 23 | 41,756 | (9,936) | (407) | 31,436 | 402 |
Balance (shares) at Dec. 31, 2020 | 2,264 | ||||||
Restricted shares | 19 | 19 | 19 | ||||
Net income (loss) | 1,425 | 1,409 | 1,409 | 16 | |||
Distributions | (3) | 0 | (3) | ||||
Contributions | 2 | 0 | 2 | ||||
Dividends | (597) | (597) | (597) | ||||
Other | (1) | 0 | (1) | ||||
Other comprehensive income (loss) | (80) | (80) | (80) | ||||
Balance at Mar. 31, 2021 | $ 32,603 | $ 23 | $ 41,775 | $ (9,124) | $ (487) | $ 32,187 | $ 416 |
Balance (shares) at Mar. 31, 2021 | 2,264 |
General (Notes)
General (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 1. General Organization We are one of the largest energy infrastructure companies in North America. We own an interest in or operate approximately 83,000 miles of pipelines and 144 terminals. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO 2 and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, chemicals, metals and petroleum coke. Basis of Presentation General Our accompanying unaudited consolidated financial statements have been prepared under the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These rules and regulations conform to the accounting principles contained in the FASB’s Accounting Standards Codification (ASC), the single source of GAAP. In compliance with such rules and regulations, all significant intercompany items have been eliminated in consolidation. In our opinion, all adjustments, which are of a normal and recurring nature, considered necessary for a fair statement of our financial position and operating results for the interim periods have been included in the accompanying consolidated financial statements, and certain amounts from prior periods have been reclassified to conform to the current presentation. Interim results are not necessarily indicative of results for a full year; accordingly, you should read these consolidated financial statements in conjunction with our consolidated financial statements and related notes included in our 2020 Form 10-K. The accompanying unaudited consolidated financial statements include our accounts and the accounts of our subsidiaries over which we have control or are the primary beneficiary. We evaluate our financial interests in business enterprises to determine if they represent variable interest entities where we are the primary beneficiary. If such criteria are met, we consolidate the financial statements of such businesses with those of our own. Earnings per Share We calculate earnings per share using the two-class method. Earnings were allocated to Class P shares and participating securities based on the amount of dividends paid in the current period plus an allocation of the undistributed earnings or excess distributions over earnings to the extent that each security participates in earnings or excess distributions over earnings. Our unvested restricted stock awards, which may be restricted stock or restricted stock units issued to employees and non-employee directors and which include dividend equivalent payments, do not participate in excess distributions over earnings. The following table sets forth the allocation of net income (loss) available to shareholders of Class P shares and participating securities: Three Months Ended March 31, 2021 2020 (In millions, except per share amounts) Net Income (Loss) Available to Stockholders $ 1,409 $ (306) Participating securities: Less: Net Income allocated to restricted stock awards(a) (7) (3) Net Income (Loss) Allocated to Class P Stockholders $ 1,402 $ (309) Basic Weighted Average Shares Outstanding 2,264 2,264 Basic Earnings (Loss) Per Share $ 0.62 $ (0.14) (a) As of March 31, 2021, there were approximately 12 million restricted stock awards outstanding. The following maximum number of potential common stock equivalents are antidilutive and, accordingly, are excluded from the determination of diluted earnings per share: Three Months Ended March 31, 2021 2020 (In millions on a weighted average basis) Unvested restricted stock awards 13 12 Convertible trust preferred securities 3 3 |
Gains and Losses on Divestiture
Gains and Losses on Divestitures, Impairments and Other Write-downs (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Impairments [Abstract] | |
Gains and Losses on Divestitures, Impairments and Other Write-downs | 2. Gains and Losses on Divestitures, Impairments and Other Write-downs We recognized the following non-cash pre-tax (gains) losses on divestitures, impairments and other write-downs, net on assets during the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (In millions) Natural Gas Pipelines Gain on sale of interest in NGPL Holdings LLC(a) $ (206) $ — Loss on write-down of related party note receivable(a) 117 — Products Pipelines Impairment of long-lived and intangible assets — 21 Terminals Gain on divestitures of long-lived assets (1) — CO 2 Impairment of goodwill(a) — 600 Impairment of long-lived assets(a) — 350 Other gain on divestitures of long-lived assets (3) — Pre-tax (gain) loss on divestitures, impairments and other write-downs, net $ (93) $ 971 (a) See below for a further discussion of these items. Sale of an Interest in NGPL Holdings On March 8, 2021, we and Brookfield Infrastructure Partners L.P. (Brookfield) completed the sale of a combined 25% interest in our joint venture, NGPL Holdings LLC (NGPL Holdings), to a fund controlled by ArcLight Capital Partners, LLC (ArcLight). We received net proceeds of $413 million for our proportionate share of the interests sold which included the transfer of $125 million of our $500 million related party promissory note receivable from NGPL Holdings to ArcLight with quarterly interest payments at 6.75%. We recognized a pre-tax gain of $206 million for our proportionate share, which is included within “Other, net” in our accompanying consolidated statement of operations for the three months ended March 31, 2021. Upon closing, we and Brookfield each hold a 37.5% interest in NGPL Holdings. Impairments During the first quarter of 2020, the energy production and demand factors related to COVID-19 and the sharp decline in commodity prices represented a triggering event that required us to perform impairment testing on certain businesses that are sensitive to commodity prices. As a result, we performed an impairment analysis of long-lived assets within our CO 2 business segment and conducted interim tests of the recoverability of goodwill for our CO 2 and Natural Gas Pipelines Non-Regulated reporting units as of March 31, 2020, which resulted in impairments of long-lived assets and goodwill within our CO 2 business segment shown in the above table during the three months ended March 31, 2020. Other Write-downs During the first quarter of 2021, we recognized a pre-tax charge of $117 million related to a write-down of our subordinated note receivable from our equity investee, Ruby, driven by the recent impairment by Ruby of its assets, which is included within “Earnings from equity investments” in our accompanying consolidated statement of operations. The impairment at Ruby was the result of upcoming contract expirations and additional uncertainty identified in late February 2021 regarding the proposed development of a third party liquefied natural gas exporting facility that could significantly increase the demand for its services. |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 3. Debt The following table provides information on the principal amount of our outstanding debt balances: March 31, 2021 December 31, 2020 (In millions, unless otherwise stated) Current portion of debt $4 billion credit facility due November 16, 2023 $ — $ — Commercial paper notes — — Current portion of senior notes 5.00%, due February 2021(a) — 750 3.50%, due March 2021(a) — 750 5.80%, due March 2021(a) — 400 5.00%, due October 2021 500 500 8.625%, due January 2022 260 — 4.15%, due March 2022 375 — 1.50%, due March 2022(b) 880 — Trust I preferred securities, 4.75%, due March 2028 111 111 Current portion of other debt 47 47 Total current portion of debt 2,173 2,558 Long-term debt (excluding current portion) Senior notes 29,314 30,141 EPC Building, LLC, promissory note, 3.967%, due 2020 through 2035 361 364 Trust I preferred securities, 4.75%, due March 2028 110 110 Other 222 223 Total long-term debt 30,007 30,838 Total debt(c) $ 32,180 $ 33,396 (a) We repaid the principal amounts on these senior notes during the first quarter of 2021. (b) Consists of senior notes denominated in Euros that have been converted to U.S. dollars. The March 31, 2021 balance is reported above at the exchange rate of 1.1730 U.S. dollars per Euro. As of March 31, 2021, the cumulative change in the exchange rate of U.S. dollars per Euro since issuance had resulted in an increase to our debt balance of $65 million related to these notes. The cumulative increase in debt due to the changes in exchange rates for the 1.50% notes due 2022 is offset by a corresponding change in the value of cross-currency swaps reflected in “Other current assets” and “Other current liabilities” on our accompanying consolidated balance sheets. At the time of issuance, we entered into foreign currency contracts associated with these senior notes, effectively converting these Euro-denominated senior notes to U.S. dollars (see Note 5 “ Risk Management—Foreign Currency Risk Management ”). (c) Excludes our “Debt fair value adjustments” which, as of March 31, 2021 and December 31, 2020, increased our total debt balances by $1,054 million and $1,293 million, respectively. We and substantially all of our wholly owned domestic subsidiaries are parties to a cross guarantee agreement whereby each party to the agreement unconditionally guarantees, jointly and severally, the payment of specified indebtedness of each other party to the agreement. On February 11, 2021, we issued in a registered offering $750 million aggregate principal amount of 3.60% senior notes due 2051 and received net proceeds of $741 million. These notes are guaranteed through the cross guarantee agreement discussed above. Credit Facility As of March 31, 2021, we had no borrowings outstanding under our $4.0 billion credit facility, no borrowings outstanding under our commercial paper program and $81 million in letters of credit. Our availability under our credit facility as of March 31, 2021 was $3,919 million. As of March 31, 2021, we were in compliance with all required covenants. Fair Value of Financial Instruments The carrying value and estimated fair value of our outstanding debt balances are disclosed below: March 31, 2021 December 31, 2020 Carrying Estimated Carrying Estimated (In millions) Total debt $ 33,234 $ 37,050 $ 34,689 $ 39,622 We used Level 2 input values to measure the estimated fair value of our outstanding debt balance as of both March 31, 2021 and December 31, 2020. |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 4. Stockholders’ Equity Class P Stock On July 19, 2017, our board of directors approved a $2 billion common share buy-back program that began in December 2017. Since December 2017, in total, we have repurchased approximately 32 million of our Class P shares under the program at an average price of approximately $17.71 per share for approximately $575 million. Dividends The following table provides information about our per share dividends: Three Months Ended March 31, 2021 2020 Per share cash dividend declared for the period $ 0.27 $ 0.2625 Per share cash dividend paid in the period 0.2625 0.25 On April 21, 2021, our board of directors declared a cash dividend of $0.27 per share for the quarterly period ended March 31, 2021, which is payable on May 17, 2021 to shareholders of record as of the close of business on April 30, 2021. Accumulated Other Comprehensive Loss Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Loss Cumulative revenues, expenses, gains and losses that under GAAP are included within our comprehensive income but excluded from our earnings are reported as “Accumulated other comprehensive loss” within “Stockholders’ Equity” in our consolidated balance sheets. Changes in the components of our “Accumulated other comprehensive loss” not including non-controlling interests are summarized as follows: Net unrealized Foreign Pension and Total (In millions) Balance as of December 31, 2020 $ (13) $ — $ (394) $ (407) Other comprehensive (loss) gain before reclassifications (156) — 17 (139) Loss reclassified from accumulated other comprehensive loss 59 — — 59 Net current-period change in accumulated other comprehensive loss (97) — 17 (80) Balance as of March 31, 2021 $ (110) $ — $ (377) $ (487) Net unrealized Foreign Pension and Total (In millions) Balance as of December 31, 2019 $ (7) $ — $ (326) $ (333) Other comprehensive gain before reclassifications 222 1 11 234 Loss reclassified from accumulated other comprehensive loss 37 — — 37 Net current-period change in accumulated other comprehensive (loss) income 259 1 11 271 Balance as of March 31, 2020 $ 252 $ 1 $ (315) $ (62) |
Risk Management (Notes)
Risk Management (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management | 5. Risk Management Certain of our business activities expose us to risks associated with unfavorable changes in the market price of natural gas, NGL and crude oil. We also have exposure to interest rate and foreign currency risk as a result of the issuance of our debt obligations. Pursuant to our management’s approved risk management policy, we use derivative contracts to hedge or reduce our exposure to some of these risks. Energy Commodity Price Risk Management As of March 31, 2021, we had the following outstanding commodity forward contracts to hedge our forecasted energy commodity purchases and sales: Net open position long/(short) Derivatives designated as hedging contracts Crude oil fixed price (16.6) MMBbl Crude oil basis (8.7) MMBbl Natural gas fixed price (35.0) Bcf Natural gas basis (30.5) Bcf NGL fixed price (1.2) MMBbl Derivatives not designated as hedging contracts Crude oil fixed price (1.0) MMBbl Crude oil basis (12.6) MMBbl Natural gas fixed price (8.2) Bcf Natural gas basis (10.6) Bcf NGL fixed price (1.1) MMBbl As of March 31, 2021, the maximum length of time over which we have hedged, for accounting purposes, our exposure to the variability in future cash flows associated with energy commodity price risk is through December 2025. Interest Rate Risk Management We utilize interest rate derivatives to hedge our exposure to both changes in the fair value of our fixed rate debt instruments and variability in expected future cash flows attributable to variable interest rate payments. The following table summarizes our outstanding interest rate contracts as of March 31, 2021: Notional amount Accounting treatment Maximum term (In millions) Derivatives designated as hedging instruments Fixed-to-variable interest rate contracts(a) $ 7,100 Fair value hedge March 2035 Variable-to-fixed interest rate contracts 250 Cash flow hedge January 2023 Derivatives not designated as hedging instruments Variable-to-fixed interest rate contracts 2,500 Mark-to-Market December 2021 (a) The principal amount of hedged senior notes consisted of $250 million included in “Current portion of debt” and $6,850 million included in “Long-term debt” on our accompanying consolidated balance sheet. During the three months ended March 31, 2021, we entered into fixed-to-variable interest rate swap agreements with a combined notional principal amount of $375 million. These agreements were designated as accounting hedges and convert a portion of our fixed rate debt to variable rate through February 2028. Foreign Currency Risk Management We utilize foreign currency derivatives to hedge our exposure to variability in foreign exchange rates. The following table summarizes our outstanding foreign currency contracts as of March 31, 2021: Notional amount Accounting treatment Maximum term (In millions) Derivatives designated as hedging instruments EUR-to-USD cross currency swap contracts(a) $ 1,358 Cash flow hedge March 2027 (a) These swaps eliminate the foreign currency risk associated with our Euro-denominated debt. The following table summarizes the fair values of our derivative contracts included in our accompanying consolidated balance sheets: Fair Value of Derivative Contracts Derivatives Asset Derivatives Liability March 31, December 31, March 31, December 31, Location Fair value Fair value (In millions) Derivatives designated as hedging instruments Energy commodity derivative contracts Fair value of derivative contracts/(Other current liabilities) $ 13 $ 42 $ (92) $ (33) Deferred charges and other assets/(Other long-term liabilities and deferred credits) 6 33 (29) (8) Subtotal 19 75 (121) (41) Interest rate contracts Fair value of derivative contracts/(Other current liabilities) 126 119 (3) (3) Deferred charges and other assets/(Other long-term liabilities and deferred credits) 364 575 (19) (7) Subtotal 490 694 (22) (10) Foreign currency contracts Fair value of derivative contracts/(Other current liabilities) 56 — (12) (6) Deferred charges and other assets/(Other long-term liabilities and deferred credits) 43 138 — — Subtotal 99 138 (12) (6) Total 608 907 (155) (57) Derivatives not designated as hedging instruments Energy commodity derivative contracts Fair value of derivative contracts/(Other current liabilities) 23 24 (33) (21) Deferred charges and other assets/(Other long-term liabilities and deferred credits) — — (1) — Total 23 24 (34) (21) Total derivatives $ 631 $ 931 $ (189) $ (78) The following two tables summarize the fair value measurements of our derivative contracts based on the three levels established by the ASC. The tables also identify the impact of derivative contracts which we have elected to present on our accompanying consolidated balance sheets on a gross basis that are eligible for netting under master netting agreements. Balance sheet asset fair value measurements by level Level 1 Level 2 Level 3 Gross amount Contracts available for netting Cash collateral held(b) Net amount (In millions) As of March 31, 2021 Energy commodity derivative contracts(a) $ 10 $ 32 $ — $ 42 $ (37) $ — $ 5 Interest rate contracts — 490 — 490 (9) — 481 Foreign currency contracts — 99 — 99 (12) — 87 As of December 31, 2020 Energy commodity derivative contracts(a) $ 6 $ 93 $ — $ 99 $ (35) $ — $ 64 Interest rate contracts — 694 — 694 (2) — 692 Foreign currency contracts — 138 — 138 (6) — 132 Balance sheet liability Level 1 Level 2 Level 3 Gross amount Contracts available for netting Cash collateral posted(b) Net amount (In millions) As of March 31, 2021 Energy commodity derivative contracts(a) $ (12) $ (143) $ — $ (155) $ 37 $ 6 $ (112) Interest rate contracts — (22) — (22) 9 — (13) Foreign currency contracts — (12) — (12) 12 — — As of December 31, 2020 Energy commodity derivative contracts(a) $ (7) $ (56) $ — $ (63) $ 35 $ (8) $ (36) Interest rate contracts — (10) — (10) 2 — (8) Foreign currency contracts — (6) — (6) 6 — — (a) Level 1 consists primarily of NYMEX natural gas futures. Level 2 consists primarily of OTC WTI swaps, NGL swaps and crude oil basis swaps. (b) Any cash collateral paid or received is reflected in this table, but only to the extent that it represents variation margins. Any amount associated with derivative prepayments or initial margins that are not influenced by the derivative asset or liability amounts or those that are determined solely on their volumetric notional amounts are excluded from this table. The following tables summarize the pre-tax impact of our derivative contracts in our accompanying consolidated statements of operations and comprehensive income (loss): Derivatives in fair value hedging relationships Location Gain/(loss) recognized in income Three Months Ended March 31, 2021 2020 (In millions) Interest rate contracts Interest, net $ (217) $ 433 Hedged fixed rate debt(a) Interest, net $ 219 $ (440) (a) As of March 31, 2021, the cumulative amount of fair value hedging adjustments to our hedged fixed rate debt was an increase of $484 million included in “Debt fair value adjustments” on our accompanying consolidated balance sheet. Derivatives in cash flow hedging relationships Gain/(loss) Location Gain/(loss) reclassified from Accumulated OCI Three Months Ended March 31, Three Months Ended March 31, 2021 2020 2021 2020 (In millions) (In millions) Energy commodity derivative contracts $ (158) $ 379 Revenues—Commodity sales $ (20) $ (8) Costs of sales 4 (17) Interest rate contracts 1 (8) Earnings from equity investments(c) — — Foreign currency contracts (46) (82) Other, net (61) (23) Total $ (203) $ 289 Total $ (77) $ (48) (a) We expect to reclassify approximately $35 million of loss associated with cash flow hedge price risk management activities included in our accumulated other comprehensive loss balance as of March 31, 2021 into earnings during the next twelve months (when the associated forecasted transactions are also expected to impact earnings); however, actual amounts reclassified into earnings could vary materially as a result of changes in market prices. (b) During the three months ended March 31, 2021 and 2020, we recognized gains of $6 million and $12 million, respectively, associated with a write-down of hedged inventory. All other amounts reclassified were the result of the hedged forecasted transactions actually affecting earnings (i.e., when the forecasted sales and purchases actually occurred). (c) Amounts represent our share of an equity investee’s accumulated other comprehensive income (loss). Derivatives not designated as accounting hedges Location Gain/(loss) recognized in income on derivatives Three Months Ended March 31, 2021 2020 (In millions) Energy commodity derivative contracts Revenues—Commodity sales $ (631) $ 117 Costs of sales 163 4 Total(a) $ (468) $ 121 (a) The three months ended March 31, 2021 and 2020 amounts include approximate losses of $448 million and gains of $74 million, respectively, associated with natural gas, crude and NGL derivative contract settlements. Credit Risks In conjunction with certain derivative contracts, we are required to provide collateral to our counterparties, which may include posting letters of credit or placing cash in margin accounts. As of March 31, 2021 and December 31, 2020, we had no outstanding letters of credit supporting our commodity price risk management program. As of March 31, 2021, we had cash margins of $30 million posted by us with our counterparties as collateral and reported within “Restricted deposits” on our accompanying consolidated balance sheet. As of December 31, 2020, we had cash margins of $3 million posted by our counterparties with us as collateral and reported within “Other current liabilities” on our accompanying consolidated balance sheet. The balance at March 31, 2021 represents the net of our initial margin requirements of $24 million and counterparty variation margin requirements of $6 million. We also use industry standard commercial agreements that allow for the netting of exposures associated with transactions executed under a single commercial agreement. Additionally, we generally utilize master netting agreements to offset credit exposure across multiple commercial agreements with a single counterparty. We also have agreements with certain counterparties to our derivative contracts that contain provisions requiring the posting of additional collateral upon a decrease in our credit rating. As of March 31, 2021, based on our current mark-to-market positions and posted collateral, we estimate that if our credit rating were downgraded one notch, we would not be required to post additional collateral. If we were downgraded two notches, we estimate that we would be required to post $67 million of additional collateral. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 6. Revenue Recognition Disaggregation of Revenues The following tables present our revenues disaggregated by revenue source and type of revenue for each revenue source: Three Months Ended March 31, 2021 Natural Gas Pipelines Products Pipelines Terminals CO 2 Corporate and Eliminations Total (In millions) Revenues from contracts with customers(a) Services Firm services(b) $ 866 $ 59 $ 191 $ — $ — $ 1,116 Fee-based services 178 221 81 15 — 495 Total services 1,044 280 272 15 — 1,611 Commodity sales Natural gas sales 3,319 — — 1 (5) 3,315 Product sales 220 125 5 229 (10) 569 Total commodity sales 3,539 125 5 230 (15) 3,884 Total revenues from contracts with customers 4,583 405 277 245 (15) 5,495 Other revenues(c) Leasing services(d) 119 43 143 12 (1) 316 Derivatives adjustments on commodity sales (618) — — (33) — (651) Other 41 5 — 5 — 51 Total other revenues (458) 48 143 (16) (1) (284) Total revenues $ 4,125 $ 453 $ 420 $ 229 $ (16) $ 5,211 Three Months Ended March 31, 2020 Natural Gas Pipelines Products Pipelines Terminals CO 2 Corporate and Eliminations Total (In millions) Revenues from contracts with customers(a) Services Firm services(b) $ 865 $ 79 $ 189 $ — $ — $ 1,133 Fee-based services 193 260 121 13 — 587 Total services 1,058 339 310 13 — 1,720 Commodity sales Natural gas sales 501 — — — (2) 499 Product sales 136 109 3 232 (13) 467 Total commodity sales 637 109 3 232 (15) 966 Total revenues from contracts with customers 1,695 448 313 245 (15) 2,686 Other revenues(c) Leasing services(d) 113 42 129 10 — 294 Derivatives adjustments on commodity sales 52 — — 52 — 104 Other 15 5 — 2 — 22 Total other revenues 180 47 129 64 — 420 Total revenues $ 1,875 $ 495 $ 442 $ 309 $ (15) $ 3,106 (a) Differences between the revenue classifications presented on the consolidated statements of operations and the categories for the disaggregated revenues by type of revenue above are primarily attributable to revenues reflected in the “Other revenues” category (see note (c)). (b) Includes non-cancellable firm service customer contracts with take-or-pay or minimum volume commitment elements, including those contracts where both the price and quantity amount are fixed. Excludes service contracts with index-based pricing, which along with revenues from other customer service contracts are reported as Fee-based services. (c) Amounts recognized as revenue under guidance prescribed in Topics of the ASC other than in Topic 606 were primarily from leases and derivative contracts. See Note 5 for additional information related to our derivative contracts. (d) Our revenues from leasing services are predominantly comprised of specific assets that we lease to customers under operating leases where one customer obtains substantially all of the economic benefit from the asset and has the right to direct the use of that asset. These leases primarily consist of specific tanks, treating facilities, marine vessels and gas equipment and pipelines with separate control locations. We do not lease assets that qualify as sales-type or finance leases. Contract Balances As of March 31, 2021 and December 31, 2020, our contract asset balances were $31 million and $20 million, respectively. Of the contract asset balance at December 31, 2020, $9 million was transferred to accounts receivable during the three months ended March 31, 2021. As of March 31, 2021 and December 31, 2020, our contract liability balances were $243 million and $239 million, respectively. Of the contract liability balance at December 31, 2020, $24 million was recognized as revenue during the three months ended March 31, 2021. Revenue Allocated to Remaining Performance Obligations The following table presents our estimated revenue allocated to remaining performance obligations for contracted revenue that has not yet been recognized, representing our “contractually committed” revenue as of March 31, 2021 that we will invoice or transfer from contract liabilities and recognize in future periods: Year Estimated Revenue (In millions) Nine months ended December 31, 2021 $ 3,276 2022 3,626 2023 2,924 2024 2,508 2025 2,124 Thereafter 13,585 Total $ 28,043 Our contractually committed revenue, for purposes of the tabular presentation above, is generally limited to service or commodity sale customer contracts which have fixed pricing and fixed volume terms and conditions, generally including contracts with take-or-pay or minimum volume commitment payment obligations. Our contractually committed revenue amounts generally exclude, based on the following practical expedient that we elected to apply, remaining performance obligations for contracts with index-based pricing or variable volume attributes in which such variable consideration is allocated entirely to a wholly unsatisfied performance obligation. |
Reportable Segments (Notes)
Reportable Segments (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Reportable Segments | 7. Reportable Segments Financial information by segment follows: Three Months Ended March 31, 2021 2020 (In millions) Revenues Natural Gas Pipelines Revenues from external customers $ 4,110 $ 1,861 Intersegment revenues 15 14 Products Pipelines 453 495 Terminals Revenues from external customers 419 441 Intersegment revenues 1 1 CO 2 229 309 Corporate and intersegment eliminations (16) (15) Total consolidated revenues $ 5,211 $ 3,106 Three Months Ended March 31, 2021 2020 (In millions) Segment EBDA(a) Natural Gas Pipelines $ 2,103 $ 1,196 Products Pipelines 248 269 Terminals 227 257 CO 2 286 (755) Total Segment EBDA 2,864 967 DD&A (541) (565) Amortization of excess cost of equity investments (22) (32) General and administrative and corporate charges (148) (165) Interest, net (377) (436) Income tax expense (351) (60) Total consolidated net income (loss) $ 1,425 $ (291) March 31, 2021 December 31, 2020 (In millions) Assets Natural Gas Pipelines $ 48,262 $ 48,597 Products Pipelines 9,152 9,182 Terminals 8,560 8,639 CO 2 2,517 2,478 Corporate assets(b) 2,717 3,077 Total consolidated assets $ 71,208 $ 71,973 (a) Includes revenues, earnings from equity investments, other, net, less operating expenses, (gain) loss on divestitures and impairments, net, and other income, net. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Income tax expense included in our accompanying consolidated statements of operations is as follows: Three Months Ended March 31, 2021 2020 (In millions, except percentages) Income tax expense $ 351 $ 60 Effective tax rate 19.8 % (26.0) % The effective tax rate for the three months ended March 31, 2021 is lower than the statutory federal rate of 21% primarily due to the release of the valuation allowance on our investment in NGPL Holdings upon the sale of a partial interest in NGPL Holdings, and dividend-received deductions from our investments in Citrus Corporation (Citrus), NGPL Holdings and Products (SE) Pipe Line Corporation (PPL), partially offset by state income taxes. The effective tax rate for the three months ended March 31, 2020 is “negative” and lower than the statutory federal rate of 21% primarily due to a $600 million impairment of goodwill, which is a reduction to income but is not deductible for tax purposes. This was partially offset by the refund of alternative minimum tax sequestration credits and dividend-received deductions from our investment in Citrus and PPL. While we would normally expect a federal income tax benefit from our loss |
Litigation and Environmental (N
Litigation and Environmental (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Environmental | 9. Litigation and Environmental We and our subsidiaries are parties to various legal, regulatory and other matters arising from the day-to-day operations of our businesses or certain predecessor operations that may result in claims against the Company. Although no assurance can be given, we believe, based on our experiences to date and taking into account established reserves and insurance, that the ultimate resolution of such items will not have a material adverse impact to our business. We believe we have meritorious defenses to the matters to which we are a party and intend to vigorously defend the Company. When we determine a loss is probable of occurring and is reasonably estimable, we accrue an undiscounted liability for such contingencies based on our best estimate using information available at that time. If the estimated loss is a range of potential outcomes and there is no better estimate within the range, we accrue the amount at the low end of the range. We disclose contingencies where an adverse outcome may be material or, in the judgment of management, we conclude the matter should otherwise be disclosed. SFPP FERC Proceedings The FERC approved the SFPP East Line Settlement in Docket No. IS21-138 (“EL Settlement”) on December 31, 2020 and it became final and effective on February 2, 2021. The EL Settlement resolved certain dockets in their entirety (IS09-437 and OR16-6) and resolved the SFPP East Line related disputes in other dockets which remain ongoing (OR14-35/36 and OR19-21/33/37). The amounts SFPP agreed to pay pursuant to the EL Settlement were fully accrued on or before December 31, 2020. The tariffs and rates charged by SFPP which were not fully resolved by the EL Settlement are subject to a number of ongoing shipper-initiated proceedings at the FERC. In general, these complaints and protests allege the rates and tariffs charged by SFPP are not just and reasonable under the Interstate Commerce Act (ICA). In some of these proceedings shippers have challenged the overall rate being charged by SFPP, and in others the shippers have challenged SFPP’s index-based rate increases. The issues involved in these proceedings include, among others, whether indexed rate increases are justified, and the appropriate level of return and income tax allowance SFPP may include in its rates. If the shippers prevail on their arguments or claims, they would be entitled to seek reparations for the two-year period preceding the filing date of their complaints and/or prospective refunds in protest cases from the date of protest, and SFPP may be required to reduce its rates going forward. With respect to the ongoing shipper-initiated proceedings at the FERC that were not fully resolved by the EL Settlement, the shippers pleaded claims to at least $50 million in rate refunds and unspecified rate reductions as of the date of their complaints in 2014 and 2018. The claims pleaded by the shippers are expected to change due to the passage of time and interest. These proceedings tend to be protracted, with decisions of the FERC often appealed to the federal courts. Management believes SFPP has meritorious arguments supporting SFPP’s rates and intends to vigorously defend SFPP against these complaints and protests. We do not believe the ultimate resolution of the shipper complaints and protests seeking rate reductions or refunds in the ongoing proceedings will have a material adverse impact on our business. Gulf LNG Facility Disputes On March 1, 2016, Gulf LNG Energy, LLC and Gulf LNG Pipeline, LLC (GLNG) received a Notice of Arbitration from Eni USA Gas Marketing LLC (Eni USA), one of two companies that entered into a terminal use agreement for capacity of the Gulf LNG Facility in Mississippi for an initial term that was not scheduled to expire until the year 2031. Eni USA is an indirect subsidiary of Eni S.p.A., a multi-national integrated energy company headquartered in Milan, Italy. Pursuant to its Notice of Arbitration, Eni USA sought declaratory and monetary relief based upon its assertion that (i) the terminal use agreement should be terminated because changes in the U.S. natural gas market since the execution of the agreement in December 2007 have “frustrated the essential purpose” of the agreement and (ii) activities allegedly undertaken by affiliates of Gulf LNG Holdings Group LLC “in connection with a plan to convert the LNG Facility into a liquefaction/export facility have given rise to a contractual right on the part of Eni USA to terminate” the agreement. On June 29, 2018, the arbitration panel delivered its Award, and the panel's ruling called for the termination of the agreement and Eni USA’s payment of compensation to GLNG. The Award resulted in our recording a net loss in the second quarter of 2018 of our equity investment in GLNG due to a non-cash impairment of our investment in GLNG partially offset by our share of earnings recognized by GLNG. On February 1, 2019, the Delaware Court of Chancery issued a Final Order and Judgment confirming the Award, which was paid by Eni USA on February 20, 2019. On September 28, 2018, GLNG filed a lawsuit against Eni S.p.A. in the Supreme Court of the State of New York in New York County to enforce a Guarantee Agreement entered into by Eni S.p.A. in connection with the terminal use agreement. On December 12, 2018, Eni S.p.A. filed a counterclaim seeking unspecified damages from GLNG. This lawsuit remains pending. On June 3, 2019, Eni USA filed a second Notice of Arbitration against GLNG asserting the same breach of contract claims that had been asserted in the first arbitration and alleging that GLNG negligently misrepresented certain facts or contentions in the first arbitration. By its second Notice of Arbitration, Eni USA sought to recover as damages some or all of the payments made by Eni USA to satisfy the Final Order and Judgment of the Court of Chancery. In response to the second Notice of Arbitration, GLNG filed a complaint with the Court of Chancery together with a motion seeking to permanently enjoin the arbitration. On cross-appeals from an Order and Final Judgment of the Court of Chancery, the Delaware Supreme Court ruled in favor of GLNG on November 17, 2020 and a permanent injunction was entered prohibiting Eni USA from re-arbitrating both the breach of contract and negligent misrepresentation claims. On April 15, 2021, Eni USA filed a petition for writ of certiorari with the U.S. Supreme Court seeking review of the Delaware Supreme Court’s decision. This petition remains pending. On December 20, 2019, GLNG’s remaining customer, Angola LNG Supply Services LLC (ALSS), filed a Notice of Arbitration seeking a declaration that its terminal use agreement should be deemed terminated as of March 1, 2016 on substantially the same terms and conditions as set forth in the arbitration award pertaining to Eni USA. ALSS also seeks a declaration that activities allegedly undertaken by affiliates of Gulf LNG Holdings Group LLC in connection with the pursuit of an LNG liquefaction export project have given rise to a contractual right on the part of ALSS to terminate the agreement. ALSS also seeks a monetary award directing GLNG to reimburse ALSS for all reservation charges and operating fees paid by ALSS after December 31, 2016 plus interest. A final decision in this arbitration is expected before the end of the third quarter of 2021. GLNG intends to continue to vigorously prosecute and defend all of the foregoing proceedings. Continental Resources, Inc. v. Hiland Partners Holdings, LLC On December 8, 2017, Continental Resources, Inc. (CLR) filed an action in Garfield County, Oklahoma state court alleging that Hiland Partners Holdings, LLC (Hiland Partners) breached a Gas Purchase Agreement, dated November 12, 2010, as amended (GPA), by failing to receive and purchase all of CLR’s dedicated gas under the GPA (produced in three North Dakota counties). CLR also alleged fraud, maintaining that Hiland Partners promised the construction of several additional facilities to process the gas without an intention to build the facilities. Hiland Partners denied these allegations, but the parties entered into a settlement agreement in June 2018, under which CLR agreed to release all of its claims in exchange for Hiland Partners’ construction of 10 infrastructure projects by November 1, 2020. CLR has filed an amended petition in which it asserts that Hiland Partners’ failure to construct certain facilities by specific dates nullifies the release contained in the settlement agreement. CLR’s amended petition makes additional claims under both the GPA and a May 8, 2008 gas purchase contract covering additional North Dakota counties, including CLR’s contention that Hiland Partners is not allowed to deduct third-party processing fees from the gas purchase price. CLR seeks damages in excess of $225 million. Hiland Partners denies and will vigorously defend against these claims. Pipeline Integrity and Releases From time to time, despite our best efforts, our pipelines experience leaks and ruptures. These leaks and ruptures may cause explosions, fire, and damage to the environment, damage to property and/or personal injury or death. In connection with these incidents, we may be sued for damages caused by an alleged failure to properly mark the locations of our pipelines and/or to properly maintain our pipelines. Depending upon the facts and circumstances of a particular incident, state and federal regulatory authorities may seek civil and/or criminal fines and penalties. General As of March 31, 2021 and December 31, 2020, our total reserve for legal matters was $130 million and $273 million, respectively. Environmental Matters We and our subsidiaries are subject to environmental cleanup and enforcement actions from time to time. In particular, CERCLA generally imposes joint and several liability for cleanup and enforcement costs on current and predecessor owners and operators of a site, among others, without regard to fault or the legality of the original conduct, subject to the right of a liable party to establish a “reasonable basis” for apportionment of costs. Our operations are also subject to local, state and federal laws and regulations relating to protection of the environment. Although we believe our operations are in substantial compliance with applicable environmental laws and regulations, risks of additional costs and liabilities are inherent in pipeline, terminal and CO 2 field and oil field operations, and there can be no assurance that we will not incur significant costs and liabilities. Moreover, it is possible that other developments could result in substantial costs and liabilities to us, such as increasingly stringent environmental laws, regulations and enforcement policies under the terms of authority of those laws, and claims for damages to property or persons resulting from our operations. We are currently involved in several governmental proceedings involving alleged violations of local, state and federal environmental and safety regulations. As we receive notices of non-compliance, we attempt to negotiate and settle such matters where appropriate. These alleged violations may result in fines and penalties, but we do not believe any such fines and penalties will be material to our business, individually or in the aggregate. We are also currently involved in several governmental proceedings involving groundwater and soil remediation efforts under state or federal administrative orders or related remediation programs. We have established a reserve to address the costs associated with the remediation efforts. In addition, we are involved with and have been identified as a potentially responsible party (PRP) in several federal and state Superfund sites. Environmental reserves have been established for those sites where our contribution is probable and reasonably estimable. In addition, we are from time to time involved in civil proceedings relating to damages alleged to have occurred as a result of accidental leaks or spills of refined petroleum products, NGL, natural gas or CO 2 . Portland Harbor Superfund Site, Willamette River, Portland, Oregon On January 6, 2017, the EPA issued a Record of Decision (ROD) that established a final remedy and cleanup plan for an industrialized area on the lower reach of the Willamette River commonly referred to as the Portland Harbor Superfund Site (PHSS). The cost for the final remedy is estimated by the EPA to be more than $3 billion and active cleanup is expected to take more than 10 years to complete. KMLT, KMBT, and some 90 other PRPs identified by the EPA are involved in a non-judicial allocation process to determine each party’s respective share of the cleanup costs related to the final remedy set forth by the ROD. We are participating in the allocation process on behalf of KMLT (in connection with its ownership or operation of two facilities) and KMBT (in connection with its ownership or operation of two facilities). Effective January 31, 2020, KMLT entered into separate Administrative Settlement Agreements and Orders on Consent (ASAOC) to complete remedial design for two distinct areas within the PHSS associated with KMLT’s facilities. The ASAOC obligates KMLT to pay a share of the remedial design costs for cleanup activities related to these two areas as required by the ROD. Our share of responsibility for the PHSS costs will not be determined until the ongoing non-judicial allocation process is concluded or a lawsuit is filed that results in a judicial decision allocating responsibility. At this time we anticipate the non-judicial allocation process will be complete in or around June 2023. Until the allocation process is completed, we are unable to reasonably estimate the extent of our liability for the costs related to the design of the proposed remedy and cleanup of the PHSS. Because costs associated with any remedial plan are expected to be spread over at least several years, we do not anticipate that our share of the costs of the remediation will have a material adverse impact to our business. In addition to CERCLA cleanup costs, we are reviewing and will attempt to settle, if possible, natural resource damage (NRD) claims asserted by state and federal trustees following their natural resource assessment of the PHSS. At this time, we are unable to reasonably estimate the extent of our potential NRD liability. Uranium Mines in Vicinity of Cameron, Arizona In the 1950s and 1960s, Rare Metals Inc., a historical subsidiary of EPNG, mined approximately 20 uranium mines in the vicinity of Cameron, Arizona, many of which are located on the Navajo Indian Reservation. The mining activities were in response to numerous incentives provided to industry by the U.S. to locate and produce domestic sources of uranium to support the Cold War-era nuclear weapons program. In May 2012, EPNG received a general notice letter from the EPA notifying EPNG of the EPA’s investigation of certain sites and its determination that the EPA considers EPNG to be a PRP within the meaning of CERCLA. In August 2013, EPNG and the EPA entered into an Administrative Order on Consent and Scope of Work pursuant to which EPNG is conducting environmental assessments of the mines and the immediate vicinity. On September 3, 2014, EPNG filed a complaint in the U.S. District Court for the District of Arizona seeking cost recovery and contribution from the applicable federal government agencies toward the cost of environmental activities associated with the mines. The U.S. District Court issued an order on April 16, 2019 that allocated 35% of past and future response costs to the U.S. The decision does not provide or establish the scope of a remedial plan with respect to the sites, nor does it establish the total cost for addressing the sites, all of which remain to be determined in subsequent proceedings and adversarial actions, if necessary, with the EPA. Until such issues are determined, we are unable to reasonably estimate the extent of our potential liability. Because costs associated with any remedial plan approved by the EPA are expected to be spread over at least several years, we do not anticipate that our share of the costs of the remediation will have a material adverse impact to our business. Lower Passaic River Study Area of the Diamond Alkali Superfund Site, New Jersey EPEC Polymers, Inc. (EPEC Polymers) and EPEC Oil Company Liquidating Trust (EPEC Oil Trust), former El Paso Corporation entities now owned by KMI, are involved in an administrative action under CERCLA known as the Lower Passaic River Study Area (Site) concerning the lower 17-mile stretch of the Passaic River. It has been alleged that EPEC Polymers and EPEC Oil Trust may be PRPs under CERCLA based on prior ownership and/or operation of properties located along the relevant section of the Passaic River. EPEC Polymers and EPEC Oil Trust entered into two Administrative Orders on Consent (AOCs) with the EPA which obligate them to investigate and characterize contamination at the Site. They are also part of a joint defense group of approximately 44 cooperating parties, referred to as the Cooperating Parties Group (CPG), which is directing and funding the AOC work required by the EPA. Under the first AOC, the CPG submitted draft remedial investigation and feasibility studies (RI/FS) of the Site to the EPA in 2015, and EPA approval remains pending. Under the second AOC, the CPG conducted a CERCLA removal action at the Passaic River Mile 10.9, and is obligated to conduct EPA-directed post-remedy monitoring in the removal area. We have established a reserve for the anticipated cost of compliance with these two AOCs. On March 4, 2016, the EPA issued its Record of Decision (ROD) for the lower eight miles of the Site. At that time the final cleanup plan in the ROD was estimated by the EPA to cost $1.7 billion. On October 5, 2016, the EPA entered into an AOC with Occidental Chemical Company (OCC), a member of the PRP group requiring OCC to spend an estimated $165 million to perform engineering and design work necessary to begin the cleanup of the lower eight miles of the Site. The design work is underway. Initial expectations were that the design work would take four years to complete. The cleanup is expected to take at least six years to complete once it begins. In addition, the EPA and numerous PRPs, including EPEC Polymers, are engaged in an allocation process for the implementation of the remedy for the lower eight miles of the Site. That process was completed December 28, 2020. We anticipate the PRPs, including EPEC Polymers, will engage in further discussions with the EPA during 2021. There remains significant uncertainty as to the implementation and associated costs of the remedy set forth in the ROD. There is also uncertainty as to the impact of the EPA FS directive for the upper nine miles of the Site not subject to the lower eight mile ROD. In a letter dated October 10, 2018, the EPA directed the CPG to prepare a streamlined FS for the Site that evaluates interim remedy alternatives for sediments in the upper nine miles of the Site. Until the PRPs engage in discussions with the EPA, the FS is completed, and the RI/FS is finalized, we are unable to reasonably estimate the extent of our potential liability. Because costs associated with any remedial plan are expected to be spread over at least several years, we do not anticipate that our share of the costs of the remediation will have a material adverse impact to our business. Louisiana Governmental Coastal Zone Erosion Litigation Beginning in 2013, several parishes in Louisiana and the City of New Orleans filed separate lawsuits in state district courts in Louisiana against a number of oil and gas companies, including TGP and SNG. In these cases, the parishes and New Orleans, as Plaintiffs, allege that certain of the defendants’ oil and gas exploration, production and transportation operations were conducted in violation of the State and Local Coastal Resources Management Act of 1978, as amended (SLCRMA) and that those operations caused substantial damage to the coastal waters of Louisiana and nearby lands. The Plaintiffs seek, among other relief, unspecified money damages, attorneys’ fees, interest, and payment of costs necessary to restore the affected areas. There are more than 40 of these cases pending in Louisiana against oil and gas companies, one of which is against TGP and one of which is against SNG, both described further below. On November 8, 2013, the Parish of Plaquemines, Louisiana filed a petition for damages in the state district court for Plaquemines Parish, Louisiana against TGP and 17 other energy companies, alleging that the defendants’ operations in Plaquemines Parish violated SLCRMA and Louisiana law, and caused substantial damage to the coastal waters and nearby lands. Plaquemines Parish seeks, among other relief, unspecified money damages, attorney fees, interest, and payment of costs necessary to restore the allegedly affected areas. In May 2018, the case was removed to the U.S. District Court for the Eastern District of Louisiana. In May 2019, the case was remanded to the state district court for Plaquemines Parish. At the same time, the U.S. District Court certified a federal jurisdiction issue for review by the U.S. Fifth Circuit Court of Appeals. On August 10, 2020, the Fifth Circuit affirmed remand. The defendants filed a motion for rehearing which is pending. The case remains effectively stayed pending a final ruling by the Court of Appeals. Until these and other issues are determined, we are not able to reasonably estimate the extent of our potential liability, if any. We will continue to vigorously defend this case. On March 29, 2019, the City of New Orleans and Orleans Parish (collectively, Orleans) filed a petition for damages in the state district court for Orleans Parish, Louisiana against SNG and 10 other energy companies alleging that the defendants’ operations in Orleans Parish violated the SLCRMA and Louisiana law, and caused substantial damage to the coastal waters and nearby lands. Orleans seeks, among other relief, unspecified money damages, attorney fees, interest, and payment of costs necessary to restore the allegedly affected areas. In April 2019, the case was removed to the U.S. District Court for the Eastern District of Louisiana. In May 2019, Orleans moved to remand the case to the state district court. In January 2020, the U.S. District Court ordered the case to be stayed and administratively closed pending the resolution of issues in a separate case to which SNG is not a party; Parish of Cameron vs. Auster Oil & Gas, Inc. , pending in U.S. District Court for the Western District of Louisiana; after which either party may move to re-open the case. Until these and other issues are determined, we are not able to reasonably estimate the extent of our potential liability, if any. We will continue to vigorously defend this case. Louisiana Landowner Coastal Erosion Litigation Beginning in January 2015, several private landowners in Louisiana, as Plaintiffs, filed separate lawsuits in state district courts in Louisiana against a number of oil and gas pipeline companies, including three cases against TGP, two cases against SNG, and one case against both TGP and SNG. In these cases, the Plaintiffs allege that the defendants failed to properly maintain pipeline canals and canal banks on their property, which caused the canals to erode and widen and resulted in substantial land loss, including significant damage to the ecology and hydrology of the affected property, and damage to timber and wildlife. The Plaintiffs allege the defendants’ conduct constitutes a breach of the subject right of way agreements, is inconsistent with prudent operating practices, violates Louisiana law, and that defendants’ failure to maintain canals and canal banks constitutes negligence and trespass. The plaintiffs seek, among other relief, unspecified money damages, attorney fees, interest, and payment of costs necessary to return the canals and canal banks to their as-built conditions and restore and remediate the affected property. The Plaintiffs also seek a declaration that the defendants are obligated to take steps to maintain canals and canal banks going forward. We will continue to vigorously defend the remaining cases. General Although it is not possible to predict the ultimate outcomes, we believe that the resolution of the environmental matters set forth in this note, and other matters to which we and our subsidiaries are a party, will not have a material adverse effect on our business. As of March 31, 2021 and December 31, 2020, we have accrued a total reserve for environmental liabilities in the amount of $256 million and $250 million, respectively. In addition, as of both March 31, 2021 and December 31, 2020, we had a receivable of $12 million recorded for expected cost recoveries that have been deemed probable. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | 10. Recent Accounting Pronouncements Reference Rate Reform (Topic 848) On March 12, 2020, the FASB issued Accounting Standards Update (ASU) No. 2020-04, “ Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” This ASU provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. On January 7, 2021, the FASB issued ASU No. 2021-01, “ Reference Rate Reform (Topic 848): Scope. ” This ASU clarifies that all derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment (the “Discounting Transition”) are in the scope of ASC 848 and therefore qualify for the available temporary optional expedients and exceptions. As such, entities that employ derivatives that are the designated hedged item in a hedge relationship where perfect effectiveness is assumed can continue to apply hedge accounting without de-designating the hedging relationship to the extent such derivatives are impacted by the Discounting Transition. The guidance is effective upon issuance and generally can be applied through December 31, 2022. We are currently reviewing the effect of Topic 848 to our financial statements. ASU No. 2020-06 On August 5, 2020, the FASB issued ASU No. 2020-06, “ Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ” This ASU (i) simplifies an issuer’s accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separate accounting for embedded conversion features; (ii) amends diluted EPS calculations for convertible instruments by requiring the use of the if-converted method; and (iii) simplifies the settlement assessment entities are required to perform on contracts that can potentially settle in an entity’s own equity by removing certain requirements. ASU No. 2020-06 will be effective for us for the fiscal year beginning January 1, 2022, and earlier adoption is permitted. We are currently reviewing the effect of this ASU to our financial statements. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation General Our accompanying unaudited consolidated financial statements have been prepared under the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These rules and regulations conform to the accounting principles contained in the FASB’s Accounting Standards Codification (ASC), the single source of GAAP. In compliance with such rules and regulations, all significant intercompany items have been eliminated in consolidation. In our opinion, all adjustments, which are of a normal and recurring nature, considered necessary for a fair statement of our financial position and operating results for the interim periods have been included in the accompanying consolidated financial statements, and certain amounts from prior periods have been reclassified to conform to the current presentation. Interim results are not necessarily indicative of results for a full year; accordingly, you should read these consolidated financial statements in conjunction with our consolidated financial statements and related notes included in our 2020 Form 10-K. The accompanying unaudited consolidated financial statements include our accounts and the accounts of our subsidiaries over which we have control or are the primary beneficiary. We evaluate our financial interests in business enterprises to determine if they represent variable interest entities where we are the primary beneficiary. If such criteria are met, we consolidate the financial statements of such businesses with those of our own. |
Earnings per Share | Earnings per Share We calculate earnings per share using the two-class method. Earnings were allocated to Class P shares and participating securities based on the amount of dividends paid in the current period plus an allocation of the undistributed earnings or excess distributions over earnings to the extent that each security participates in earnings or excess distributions over earnings. Our unvested restricted stock awards, which may be restricted stock or restricted stock units issued to employees and non-employee directors and which include dividend equivalent payments, do not participate in excess distributions over earnings. |
General (Tables)
General (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Net Income for Shareholders and Participating Securities | The following table sets forth the allocation of net income (loss) available to shareholders of Class P shares and participating securities: Three Months Ended March 31, 2021 2020 (In millions, except per share amounts) Net Income (Loss) Available to Stockholders $ 1,409 $ (306) Participating securities: Less: Net Income allocated to restricted stock awards(a) (7) (3) Net Income (Loss) Allocated to Class P Stockholders $ 1,402 $ (309) Basic Weighted Average Shares Outstanding 2,264 2,264 Basic Earnings (Loss) Per Share $ 0.62 $ (0.14) (a) As of March 31, 2021, there were approximately 12 million restricted stock awards outstanding. |
Schedule of Antidilutive Securities | The following maximum number of potential common stock equivalents are antidilutive and, accordingly, are excluded from the determination of diluted earnings per share: Three Months Ended March 31, 2021 2020 (In millions on a weighted average basis) Unvested restricted stock awards 13 12 Convertible trust preferred securities 3 3 |
Gains and Losses on Divestitu_2
Gains and Losses on Divestitures, Impairments and Other Write-downs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Impairments [Abstract] | |
Schedule of Impairments | We recognized the following non-cash pre-tax (gains) losses on divestitures, impairments and other write-downs, net on assets during the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (In millions) Natural Gas Pipelines Gain on sale of interest in NGPL Holdings LLC(a) $ (206) $ — Loss on write-down of related party note receivable(a) 117 — Products Pipelines Impairment of long-lived and intangible assets — 21 Terminals Gain on divestitures of long-lived assets (1) — CO 2 Impairment of goodwill(a) — 600 Impairment of long-lived assets(a) — 350 Other gain on divestitures of long-lived assets (3) — Pre-tax (gain) loss on divestitures, impairments and other write-downs, net $ (93) $ 971 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Instrument [Line Items] | |
Schedule of Debt | The following table provides information on the principal amount of our outstanding debt balances: March 31, 2021 December 31, 2020 (In millions, unless otherwise stated) Current portion of debt $4 billion credit facility due November 16, 2023 $ — $ — Commercial paper notes — — Current portion of senior notes 5.00%, due February 2021(a) — 750 3.50%, due March 2021(a) — 750 5.80%, due March 2021(a) — 400 5.00%, due October 2021 500 500 8.625%, due January 2022 260 — 4.15%, due March 2022 375 — 1.50%, due March 2022(b) 880 — Trust I preferred securities, 4.75%, due March 2028 111 111 Current portion of other debt 47 47 Total current portion of debt 2,173 2,558 Long-term debt (excluding current portion) Senior notes 29,314 30,141 EPC Building, LLC, promissory note, 3.967%, due 2020 through 2035 361 364 Trust I preferred securities, 4.75%, due March 2028 110 110 Other 222 223 Total long-term debt 30,007 30,838 Total debt(c) $ 32,180 $ 33,396 (a) We repaid the principal amounts on these senior notes during the first quarter of 2021. (b) Consists of senior notes denominated in Euros that have been converted to U.S. dollars. The March 31, 2021 balance is reported above at the exchange rate of 1.1730 U.S. dollars per Euro. As of March 31, 2021, the cumulative change in the exchange rate of U.S. dollars per Euro since issuance had resulted in an increase to our debt balance of $65 million related to these notes. The cumulative increase in debt due to the changes in exchange rates for the 1.50% notes due 2022 is offset by a corresponding change in the value of cross-currency swaps reflected in “Other current assets” and “Other current liabilities” on our accompanying consolidated balance sheets. At the time of issuance, we entered into foreign currency contracts associated with these senior notes, effectively converting these Euro-denominated senior notes to U.S. dollars (see Note 5 “ Risk Management—Foreign Currency Risk Management ”). (c) Excludes our “Debt fair value adjustments” which, as of March 31, 2021 and December 31, 2020, increased our total debt balances by $1,054 million and $1,293 million, respectively. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying value and estimated fair value of our outstanding debt balances are disclosed below: March 31, 2021 December 31, 2020 Carrying Estimated Carrying Estimated (In millions) Total debt $ 33,234 $ 37,050 $ 34,689 $ 39,622 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends | The following table provides information about our per share dividends: Three Months Ended March 31, 2021 2020 Per share cash dividend declared for the period $ 0.27 $ 0.2625 Per share cash dividend paid in the period 0.2625 0.25 |
Schedule of Accumulated Other Comprehensive Income | Changes in the components of our “Accumulated other comprehensive loss” not including non-controlling interests are summarized as follows: Net unrealized Foreign Pension and Total (In millions) Balance as of December 31, 2020 $ (13) $ — $ (394) $ (407) Other comprehensive (loss) gain before reclassifications (156) — 17 (139) Loss reclassified from accumulated other comprehensive loss 59 — — 59 Net current-period change in accumulated other comprehensive loss (97) — 17 (80) Balance as of March 31, 2021 $ (110) $ — $ (377) $ (487) Net unrealized Foreign Pension and Total (In millions) Balance as of December 31, 2019 $ (7) $ — $ (326) $ (333) Other comprehensive gain before reclassifications 222 1 11 234 Loss reclassified from accumulated other comprehensive loss 37 — — 37 Net current-period change in accumulated other comprehensive (loss) income 259 1 11 271 Balance as of March 31, 2020 $ 252 $ 1 $ (315) $ (62) |
Risk Management (Tables)
Risk Management (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of March 31, 2021, we had the following outstanding commodity forward contracts to hedge our forecasted energy commodity purchases and sales: Net open position long/(short) Derivatives designated as hedging contracts Crude oil fixed price (16.6) MMBbl Crude oil basis (8.7) MMBbl Natural gas fixed price (35.0) Bcf Natural gas basis (30.5) Bcf NGL fixed price (1.2) MMBbl Derivatives not designated as hedging contracts Crude oil fixed price (1.0) MMBbl Crude oil basis (12.6) MMBbl Natural gas fixed price (8.2) Bcf Natural gas basis (10.6) Bcf NGL fixed price (1.1) MMBbl |
Schedule of Interest Rate Derivatives | The following table summarizes our outstanding interest rate contracts as of March 31, 2021: Notional amount Accounting treatment Maximum term (In millions) Derivatives designated as hedging instruments Fixed-to-variable interest rate contracts(a) $ 7,100 Fair value hedge March 2035 Variable-to-fixed interest rate contracts 250 Cash flow hedge January 2023 Derivatives not designated as hedging instruments Variable-to-fixed interest rate contracts 2,500 Mark-to-Market December 2021 (a) The principal amount of hedged senior notes consisted of $250 million included in “Current portion of debt” and $6,850 million included in “Long-term debt” on our accompanying consolidated balance sheet. |
Schedule of Foreign Exchange Contracts, Statement of Financial Position | The following table summarizes our outstanding foreign currency contracts as of March 31, 2021: Notional amount Accounting treatment Maximum term (In millions) Derivatives designated as hedging instruments EUR-to-USD cross currency swap contracts(a) $ 1,358 Cash flow hedge March 2027 (a) These swaps eliminate the foreign currency risk associated with our Euro-denominated debt. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair values of our derivative contracts included in our accompanying consolidated balance sheets: Fair Value of Derivative Contracts Derivatives Asset Derivatives Liability March 31, December 31, March 31, December 31, Location Fair value Fair value (In millions) Derivatives designated as hedging instruments Energy commodity derivative contracts Fair value of derivative contracts/(Other current liabilities) $ 13 $ 42 $ (92) $ (33) Deferred charges and other assets/(Other long-term liabilities and deferred credits) 6 33 (29) (8) Subtotal 19 75 (121) (41) Interest rate contracts Fair value of derivative contracts/(Other current liabilities) 126 119 (3) (3) Deferred charges and other assets/(Other long-term liabilities and deferred credits) 364 575 (19) (7) Subtotal 490 694 (22) (10) Foreign currency contracts Fair value of derivative contracts/(Other current liabilities) 56 — (12) (6) Deferred charges and other assets/(Other long-term liabilities and deferred credits) 43 138 — — Subtotal 99 138 (12) (6) Total 608 907 (155) (57) Derivatives not designated as hedging instruments Energy commodity derivative contracts Fair value of derivative contracts/(Other current liabilities) 23 24 (33) (21) Deferred charges and other assets/(Other long-term liabilities and deferred credits) — — (1) — Total 23 24 (34) (21) Total derivatives $ 631 $ 931 $ (189) $ (78) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following two tables summarize the fair value measurements of our derivative contracts based on the three levels established by the ASC. The tables also identify the impact of derivative contracts which we have elected to present on our accompanying consolidated balance sheets on a gross basis that are eligible for netting under master netting agreements. Balance sheet asset fair value measurements by level Level 1 Level 2 Level 3 Gross amount Contracts available for netting Cash collateral held(b) Net amount (In millions) As of March 31, 2021 Energy commodity derivative contracts(a) $ 10 $ 32 $ — $ 42 $ (37) $ — $ 5 Interest rate contracts — 490 — 490 (9) — 481 Foreign currency contracts — 99 — 99 (12) — 87 As of December 31, 2020 Energy commodity derivative contracts(a) $ 6 $ 93 $ — $ 99 $ (35) $ — $ 64 Interest rate contracts — 694 — 694 (2) — 692 Foreign currency contracts — 138 — 138 (6) — 132 Balance sheet liability Level 1 Level 2 Level 3 Gross amount Contracts available for netting Cash collateral posted(b) Net amount (In millions) As of March 31, 2021 Energy commodity derivative contracts(a) $ (12) $ (143) $ — $ (155) $ 37 $ 6 $ (112) Interest rate contracts — (22) — (22) 9 — (13) Foreign currency contracts — (12) — (12) 12 — — As of December 31, 2020 Energy commodity derivative contracts(a) $ (7) $ (56) $ — $ (63) $ 35 $ (8) $ (36) Interest rate contracts — (10) — (10) 2 — (8) Foreign currency contracts — (6) — (6) 6 — — (a) Level 1 consists primarily of NYMEX natural gas futures. Level 2 consists primarily of OTC WTI swaps, NGL swaps and crude oil basis swaps. (b) Any cash collateral paid or received is reflected in this table, but only to the extent that it represents variation margins. Any amount associated with derivative prepayments or initial margins that are not influenced by the derivative asset or liability amounts or those that are determined solely on their volumetric notional amounts are excluded from this table. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables summarize the pre-tax impact of our derivative contracts in our accompanying consolidated statements of operations and comprehensive income (loss): Derivatives in fair value hedging relationships Location Gain/(loss) recognized in income Three Months Ended March 31, 2021 2020 (In millions) Interest rate contracts Interest, net $ (217) $ 433 Hedged fixed rate debt(a) Interest, net $ 219 $ (440) (a) As of March 31, 2021, the cumulative amount of fair value hedging adjustments to our hedged fixed rate debt was an increase of $484 million included in “Debt fair value adjustments” on our accompanying consolidated balance sheet. Derivatives in cash flow hedging relationships Gain/(loss) Location Gain/(loss) reclassified from Accumulated OCI Three Months Ended March 31, Three Months Ended March 31, 2021 2020 2021 2020 (In millions) (In millions) Energy commodity derivative contracts $ (158) $ 379 Revenues—Commodity sales $ (20) $ (8) Costs of sales 4 (17) Interest rate contracts 1 (8) Earnings from equity investments(c) — — Foreign currency contracts (46) (82) Other, net (61) (23) Total $ (203) $ 289 Total $ (77) $ (48) (a) We expect to reclassify approximately $35 million of loss associated with cash flow hedge price risk management activities included in our accumulated other comprehensive loss balance as of March 31, 2021 into earnings during the next twelve months (when the associated forecasted transactions are also expected to impact earnings); however, actual amounts reclassified into earnings could vary materially as a result of changes in market prices. (b) During the three months ended March 31, 2021 and 2020, we recognized gains of $6 million and $12 million, respectively, associated with a write-down of hedged inventory. All other amounts reclassified were the result of the hedged forecasted transactions actually affecting earnings (i.e., when the forecasted sales and purchases actually occurred). (c) Amounts represent our share of an equity investee’s accumulated other comprehensive income (loss). Derivatives not designated as accounting hedges Location Gain/(loss) recognized in income on derivatives Three Months Ended March 31, 2021 2020 (In millions) Energy commodity derivative contracts Revenues—Commodity sales $ (631) $ 117 Costs of sales 163 4 Total(a) $ (468) $ 121 (a) The three months ended March 31, 2021 and 2020 amounts include approximate losses of $448 million and gains of $74 million, respectively, associated with natural gas, crude and NGL derivative contract settlements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenues disaggregated by revenue source and type of revenue for each revenue source: Three Months Ended March 31, 2021 Natural Gas Pipelines Products Pipelines Terminals CO 2 Corporate and Eliminations Total (In millions) Revenues from contracts with customers(a) Services Firm services(b) $ 866 $ 59 $ 191 $ — $ — $ 1,116 Fee-based services 178 221 81 15 — 495 Total services 1,044 280 272 15 — 1,611 Commodity sales Natural gas sales 3,319 — — 1 (5) 3,315 Product sales 220 125 5 229 (10) 569 Total commodity sales 3,539 125 5 230 (15) 3,884 Total revenues from contracts with customers 4,583 405 277 245 (15) 5,495 Other revenues(c) Leasing services(d) 119 43 143 12 (1) 316 Derivatives adjustments on commodity sales (618) — — (33) — (651) Other 41 5 — 5 — 51 Total other revenues (458) 48 143 (16) (1) (284) Total revenues $ 4,125 $ 453 $ 420 $ 229 $ (16) $ 5,211 Three Months Ended March 31, 2020 Natural Gas Pipelines Products Pipelines Terminals CO 2 Corporate and Eliminations Total (In millions) Revenues from contracts with customers(a) Services Firm services(b) $ 865 $ 79 $ 189 $ — $ — $ 1,133 Fee-based services 193 260 121 13 — 587 Total services 1,058 339 310 13 — 1,720 Commodity sales Natural gas sales 501 — — — (2) 499 Product sales 136 109 3 232 (13) 467 Total commodity sales 637 109 3 232 (15) 966 Total revenues from contracts with customers 1,695 448 313 245 (15) 2,686 Other revenues(c) Leasing services(d) 113 42 129 10 — 294 Derivatives adjustments on commodity sales 52 — — 52 — 104 Other 15 5 — 2 — 22 Total other revenues 180 47 129 64 — 420 Total revenues $ 1,875 $ 495 $ 442 $ 309 $ (15) $ 3,106 (a) Differences between the revenue classifications presented on the consolidated statements of operations and the categories for the disaggregated revenues by type of revenue above are primarily attributable to revenues reflected in the “Other revenues” category (see note (c)). (b) Includes non-cancellable firm service customer contracts with take-or-pay or minimum volume commitment elements, including those contracts where both the price and quantity amount are fixed. Excludes service contracts with index-based pricing, which along with revenues from other customer service contracts are reported as Fee-based services. (c) Amounts recognized as revenue under guidance prescribed in Topics of the ASC other than in Topic 606 were primarily from leases and derivative contracts. See Note 5 for additional information related to our derivative contracts. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table presents our estimated revenue allocated to remaining performance obligations for contracted revenue that has not yet been recognized, representing our “contractually committed” revenue as of March 31, 2021 that we will invoice or transfer from contract liabilities and recognize in future periods: Year Estimated Revenue (In millions) Nine months ended December 31, 2021 $ 3,276 2022 3,626 2023 2,924 2024 2,508 2025 2,124 Thereafter 13,585 Total $ 28,043 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information by segment follows: Three Months Ended March 31, 2021 2020 (In millions) Revenues Natural Gas Pipelines Revenues from external customers $ 4,110 $ 1,861 Intersegment revenues 15 14 Products Pipelines 453 495 Terminals Revenues from external customers 419 441 Intersegment revenues 1 1 CO 2 229 309 Corporate and intersegment eliminations (16) (15) Total consolidated revenues $ 5,211 $ 3,106 Three Months Ended March 31, 2021 2020 (In millions) Segment EBDA(a) Natural Gas Pipelines $ 2,103 $ 1,196 Products Pipelines 248 269 Terminals 227 257 CO 2 286 (755) Total Segment EBDA 2,864 967 DD&A (541) (565) Amortization of excess cost of equity investments (22) (32) General and administrative and corporate charges (148) (165) Interest, net (377) (436) Income tax expense (351) (60) Total consolidated net income (loss) $ 1,425 $ (291) March 31, 2021 December 31, 2020 (In millions) Assets Natural Gas Pipelines $ 48,262 $ 48,597 Products Pipelines 9,152 9,182 Terminals 8,560 8,639 CO 2 2,517 2,478 Corporate assets(b) 2,717 3,077 Total consolidated assets $ 71,208 $ 71,973 (a) Includes revenues, earnings from equity investments, other, net, less operating expenses, (gain) loss on divestitures and impairments, net, and other income, net. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | Income tax expense included in our accompanying consolidated statements of operations is as follows: Three Months Ended March 31, 2021 2020 (In millions, except percentages) Income tax expense $ 351 $ 60 Effective tax rate 19.8 % (26.0) % |
General - Organization and Basi
General - Organization and Basis of Presentation (Details) mi in Thousands | Mar. 31, 2021Terminalsmi |
General [Line Items] | |
Miles of pipeline | mi | 83 |
Number of pipeline terminals owned interest in and/or operated | Terminals | 144 |
General - Schedule of Net Incom
General - Schedule of Net Income Available to Shareholders (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net Income (Loss) Available to Common Stockholders | $ 1,409 | $ (306) |
Less: Net Income allocated to restricted stock awards(a) | $ (7) | $ (3) |
Basic Weighted Average Common Shares Outstanding | 2,264 | 2,264 |
Basic Earnings (Loss) Per Common Share | $ 0.62 | $ (0.14) |
Class P Common Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net Income (Loss) Available to Common Stockholders | $ 1,402 | $ (309) |
Unvested restricted stock awards | Class P Common Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Restricted stock awards outstanding | 12 |
General - Schedule of Antidilut
General - Schedule of Antidilutive Securities (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Unvested restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 13 | 12 |
Convertible trust preferred securities | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 3 | 3 |
Gains and Losses on Divestitu_3
Gains and Losses on Divestitures, Impairments and Other Write-downs – Schedule of Pre-tax Loss (Gain) on Impairments and Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gain from sale of interests in NGPL Holdings LLC | $ 206 | $ 0 |
Gain on divestitures of long-lived assets | 4 | (971) |
Pre-tax (gain) loss on divestitures, impairments and other write-downs, net | (93) | 971 |
Corporate and intersegment eliminations | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other gain on divestitures of long-lived assets | (3) | 0 |
Natural Gas Pipelines | NGPL Holdings, LLC | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gain from sale of interests in NGPL Holdings LLC | (206) | 0 |
Natural Gas Pipelines | Ruby Pipeline Holding Company LLC | ||
Finite-Lived Intangible Assets [Line Items] | ||
Loss on write-down of related party note receivable | 117 | 0 |
Products Pipelines | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairments of long-lived assets | 0 | 21 |
Terminals | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gain on divestitures of long-lived assets | (1) | 0 |
CO2 | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairments of long-lived assets | 0 | 350 |
Impairment of goodwill | $ 0 | $ 600 |
Gains and Losses on Divestitu_4
Gains and Losses on Divestitures, Impairments and Other Write-downs- Sale of an interest in NGPL Holdings (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 08, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Proceeds from sales of investments | $ 413 | $ 907 | |
Equity Method Investment, Realized Gain (Loss) on Disposal | 206 | 0 | |
NGPL Holdings, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Proceeds from sales of investments | 413 | ||
Related party promissory note receivable from NGPL Holdings | $ 500 | ||
Interest rate | 6.75% | ||
NGPL Holdings, LLC | Natural Gas Pipelines | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ (206) | $ 0 | |
ArcLight Capital Partners, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Related party promissory note receivable from NGPL Holdings | $ 125 | ||
ArcLight Capital Partners, LLC | NGPL Holdings, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 25.00% | ||
Brookfield | NGPL Holdings, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 37.50% | ||
KMI | NGPL Holdings, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 37.50% |
Gains and Losses on Divestitu_5
Gains and Losses on Divestitures, Impairments and Other Write-downs - Other Write-downs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Natural Gas Pipelines | Ruby Pipeline Holding Company LLC | ||
Finite-Lived Intangible Assets [Line Items] | ||
Write-down of note receivable from Ruby | $ 117 | $ 0 |
Debt - Schedule of Debt Outstan
Debt - Schedule of Debt Outstanding (Details) $ in Millions | Feb. 11, 2021USD ($) | Mar. 31, 2021USD ($)$ / € | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | ||||
Current portion of debt | $ 2,173 | $ 2,558 | ||
Total long-term debt | 30,007 | 30,838 | ||
Total debt(c) | 32,180 | 33,396 | ||
Debt fair value adjustments | 1,054 | 1,293 | ||
Proceeds from issuances of debt | $ 3,110 | $ 2,125 | ||
Foreign Currency Exchange Rate, Translation | $ / € | 1.1730 | |||
Commercial paper notes | ||||
Debt Instrument [Line Items] | ||||
Current portion of debt | $ 0 | 0 | ||
Current portion of other debt | ||||
Debt Instrument [Line Items] | ||||
Current portion of debt | 47 | 47 | ||
Trust I preferred securities, 4.75%, due March 2028 | Capital Trust I | ||||
Debt Instrument [Line Items] | ||||
Current portion of debt | 111 | 111 | ||
Total long-term debt | $ 110 | 110 | ||
Interest rate | 4.75% | |||
EPC Building, LLC, promissory note, 3.967%, due 2020 through 2035 | EPC Building LLC | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 361 | 364 | ||
Interest rate | 3.967% | |||
Other | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 222 | 223 | ||
$4 billion credit facility due November 16, 2023 | ||||
Debt Instrument [Line Items] | ||||
Current portion of debt | 0 | 0 | ||
Line of Credit Facility, Current Borrowing Capacity | 4,000 | |||
Senior notes | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 29,314 | 30,141 | ||
Senior notes | 5.00%, due February 2021(a) | ||||
Debt Instrument [Line Items] | ||||
Current portion of debt | 0 | $ 750 | ||
Interest rate | 5.00% | |||
Senior notes | 3.50%, due March 2021(a) | ||||
Debt Instrument [Line Items] | ||||
Current portion of debt | 0 | $ 750 | ||
Interest rate | 3.50% | |||
Senior notes | 5.80%, due March 2021(a) | ||||
Debt Instrument [Line Items] | ||||
Current portion of debt | 0 | $ 400 | ||
Interest rate | 5.80% | |||
Senior notes | 5.00%, due October 2021 | ||||
Debt Instrument [Line Items] | ||||
Current portion of debt | $ 500 | $ 500 | ||
Interest rate | 5.00% | |||
Senior notes | 8.625%, due January 2022 | EPNG | ||||
Debt Instrument [Line Items] | ||||
Current portion of debt | $ 260 | 0 | ||
Interest rate | 8.625% | |||
Senior notes | 4.15%, due March 2022 | ||||
Debt Instrument [Line Items] | ||||
Current portion of debt | $ 375 | 0 | ||
Interest rate | 4.15% | |||
Senior notes | 1.50%, due March 2022(b) | ||||
Debt Instrument [Line Items] | ||||
Current portion of debt | $ 880 | $ 0 | ||
Interest rate | 1.50% | |||
Translation Adjustment Functional to Reporting Currency, Increase (Decrease), Gross of Tax | $ 65 | |||
Senior notes | 3.60%, due February 2051 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 750 | |||
Interest rate | 3.60% | |||
Proceeds from issuances of debt | $ 741 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Line of credit facility | $ 2,173 | $ 2,558 |
$4 billion credit facility due November 16, 2023 | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility | 0 | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 3,919 | |
Letters of Credit Outstanding, Amount | 81 | |
Line of Credit Facility, Current Borrowing Capacity | 4,000 | |
Commercial paper notes | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility | $ 0 | $ 0 |
Debt - Fair Value of Financial
Debt - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | $ 33,234 | $ 34,689 |
Estimated fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | $ 37,050 | $ 39,622 |
Stockholders' Equity - Common E
Stockholders' Equity - Common Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Apr. 21, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Jul. 19, 2017 |
Class of Stock [Line Items] | |||||
Common share buy-back program, amount | $ 2,000 | ||||
Common share buy-back program, average price per share | $ 17.71 | ||||
Value of shares repurchased | $ 50 | $ 575 | |||
Per common share cash dividend declared for the period | $ 0.27 | $ 0.2625 | |||
Per common share cash dividend paid in the period | $ 0.2625 | $ 0.25 | |||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Per common share cash dividend declared for the period | $ 0.27 | ||||
Common stock | |||||
Class of Stock [Line Items] | |||||
Shares repurchased | 4 | 32 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 31,838 | $ 34,086 |
Balance | 32,603 | 33,464 |
Net unrealized gains/(losses) on cash flow hedge derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (13) | (7) |
Other comprehensive (loss) gain before reclassifications | (156) | 222 |
Loss reclassified from accumulated other comprehensive loss | 59 | 37 |
Net current-period change in accumulated other comprehensive (loss) income | (97) | 259 |
Balance | (110) | 252 |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 0 | 0 |
Other comprehensive (loss) gain before reclassifications | 0 | 1 |
Loss reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current-period change in accumulated other comprehensive (loss) income | 0 | 1 |
Balance | 0 | 1 |
Pension and other postretirement liability adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (394) | (326) |
Other comprehensive (loss) gain before reclassifications | 17 | 11 |
Loss reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current-period change in accumulated other comprehensive (loss) income | 17 | 11 |
Balance | (377) | (315) |
Total accumulated other comprehensive loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (407) | (333) |
Other comprehensive (loss) gain before reclassifications | (139) | 234 |
Loss reclassified from accumulated other comprehensive loss | 59 | 37 |
Net current-period change in accumulated other comprehensive (loss) income | (80) | 271 |
Balance | $ (487) | $ (62) |
Risk Management - Energy Commod
Risk Management - Energy Commodity Price Risk Management (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)BcfMMBbls | |
Derivative [Line Items] | |
Additional Collateral, Aggregate Fair Value | $ | $ 67 |
Short | Derivatives designated as hedging instruments | Crude oil fixed price | Energy commodity derivative contracts | |
Derivative [Line Items] | |
Net open position | (16.6) |
Short | Derivatives designated as hedging instruments | Crude oil basis | Energy commodity derivative contracts | |
Derivative [Line Items] | |
Net open position | (8.7) |
Short | Derivatives designated as hedging instruments | Natural gas fixed price | Energy commodity derivative contracts | |
Derivative [Line Items] | |
Net open position | Bcf | (35) |
Short | Derivatives designated as hedging instruments | Natural gas basis | Energy commodity derivative contracts | |
Derivative [Line Items] | |
Net open position | Bcf | (30.5) |
Short | Derivatives designated as hedging instruments | NGL fixed price | Energy commodity derivative contracts | |
Derivative [Line Items] | |
Net open position | (1.2) |
Short | Derivatives not designated as hedging instruments | Crude oil fixed price | Energy commodity derivative contracts | |
Derivative [Line Items] | |
Net open position | (1) |
Short | Derivatives not designated as hedging instruments | Crude oil basis | Energy commodity derivative contracts | |
Derivative [Line Items] | |
Net open position | (12.6) |
Short | Derivatives not designated as hedging instruments | Natural gas fixed price | Energy commodity derivative contracts | |
Derivative [Line Items] | |
Net open position | Bcf | (8.2) |
Short | Derivatives not designated as hedging instruments | Natural gas basis | Energy commodity derivative contracts | |
Derivative [Line Items] | |
Net open position | Bcf | (10.6) |
Short | Derivatives not designated as hedging instruments | NGL fixed price | Energy commodity derivative contracts | |
Derivative [Line Items] | |
Net open position | (1.1) |
Risk Management - Interest Rate
Risk Management - Interest Rate Risk Management (Details) $ in Millions | Mar. 31, 2021USD ($) |
Fixed-to-Variable Interest Rate Contracts | Designated as Hedging Instrument | Fair Value Hedging | |
Derivative [Line Items] | |
Notional amount | $ 7,100 |
Fixed-To-Variable Interest Rate Contracts Q1 2021 | Designated as Hedging Instrument | Fair Value Hedging | |
Derivative [Line Items] | |
Notional amount | 375 |
Variable-to-Fixed Interest Rate Contracts | Designated as Hedging Instrument | Derivatives in cash flow hedging relationships | |
Derivative [Line Items] | |
Notional amount | 250 |
Variable-to-Fixed Interest Rate Contracts | Derivatives not designated as hedging instruments | Fair Value Hedging | |
Derivative [Line Items] | |
Notional amount | 2,500 |
Current Portion Of Debt | Fixed-to-Variable Interest Rate Contracts | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative, Amount of Hedged Item | 250 |
Long-term Debt | Fixed-to-Variable Interest Rate Contracts | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative, Amount of Hedged Item | $ 6,850 |
Risk Management - Foreign Curre
Risk Management - Foreign Currency Risk Management (Details) $ in Millions | Mar. 31, 2021USD ($) |
Derivatives in cash flow hedging relationships | Cross-currency contracts | |
Derivative [Line Items] | |
Notional amount | $ 1,358 |
Risk Management - Fair Value of
Risk Management - Fair Value of Derivative Contracts (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | $ 631 | $ 931 |
Derivatives Liability | (189) | (78) |
Energy commodity derivative contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 42 | 99 |
Derivatives Liability | (155) | (63) |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 490 | 694 |
Derivatives Liability | (22) | (10) |
Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 99 | 138 |
Derivatives Liability | (12) | (6) |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 608 | 907 |
Derivatives Liability | (155) | (57) |
Derivatives designated as hedging instruments | Energy commodity derivative contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 19 | 75 |
Derivatives Liability | (121) | (41) |
Derivatives designated as hedging instruments | Energy commodity derivative contracts | Fair value of derivatives contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 13 | 42 |
Derivatives designated as hedging instruments | Energy commodity derivative contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Liability | (92) | (33) |
Derivatives designated as hedging instruments | Energy commodity derivative contracts | Deferred charges and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 6 | 33 |
Derivatives designated as hedging instruments | Energy commodity derivative contracts | Other long-term liabilities and deferred credits | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Liability | (29) | (8) |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 490 | 694 |
Derivatives Liability | (22) | (10) |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value of derivatives contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 126 | 119 |
Derivatives designated as hedging instruments | Interest rate contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Liability | (3) | (3) |
Derivatives designated as hedging instruments | Interest rate contracts | Deferred charges and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 364 | 575 |
Derivatives designated as hedging instruments | Interest rate contracts | Other long-term liabilities and deferred credits | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Liability | (19) | (7) |
Derivatives designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 99 | 138 |
Derivatives Liability | (12) | (6) |
Derivatives designated as hedging instruments | Foreign currency contracts | Fair value of derivatives contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 56 | 0 |
Derivatives designated as hedging instruments | Foreign currency contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Liability | (12) | (6) |
Derivatives designated as hedging instruments | Foreign currency contracts | Deferred charges and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 43 | 138 |
Derivatives designated as hedging instruments | Foreign currency contracts | Other long-term liabilities and deferred credits | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Liability | 0 | 0 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 23 | 24 |
Derivatives Liability | (34) | (21) |
Derivatives not designated as hedging instruments | Energy commodity derivative contracts | Fair value of derivatives contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 23 | 24 |
Derivatives not designated as hedging instruments | Energy commodity derivative contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Liability | (33) | (21) |
Derivatives not designated as hedging instruments | Energy commodity derivative contracts | Deferred charges and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Asset | 0 | 0 |
Derivatives not designated as hedging instruments | Energy commodity derivative contracts | Other long-term liabilities and deferred credits | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Liability | $ (1) | $ 0 |
Risk Management - Derivative As
Risk Management - Derivative Assets Input Level (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | $ 631 | $ 931 |
Energy commodity derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 42 | 99 |
Contracts available for netting | (37) | (35) |
Cash collateral held | 0 | 0 |
Net amount | 5 | 64 |
Energy commodity derivative contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 10 | 6 |
Energy commodity derivative contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 32 | 93 |
Energy commodity derivative contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 0 | 0 |
Interest rate contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 490 | 694 |
Contracts available for netting | (9) | (2) |
Cash collateral held | 0 | 0 |
Net amount | 481 | 692 |
Interest rate contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 0 | 0 |
Interest rate contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 490 | 694 |
Interest rate contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 0 | 0 |
Foreign currency contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 99 | 138 |
Contracts available for netting | (12) | (6) |
Cash collateral held | 0 | 0 |
Net amount | 87 | 132 |
Foreign currency contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 0 | 0 |
Foreign currency contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 99 | 138 |
Foreign currency contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | $ 0 | $ 0 |
Risk Management - Derivative Li
Risk Management - Derivative Liabilities Input Level (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | $ (189) | $ (78) |
Energy commodity derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | (155) | (63) |
Contracts available for netting | 37 | 35 |
Cash collateral posted | 6 | (8) |
Net amount | (112) | (36) |
Energy commodity derivative contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | (12) | (7) |
Energy commodity derivative contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | (143) | (56) |
Energy commodity derivative contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 0 | 0 |
Interest rate contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | (22) | (10) |
Contracts available for netting | 9 | 2 |
Cash collateral posted | 0 | 0 |
Net amount | (13) | (8) |
Interest rate contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 0 | 0 |
Interest rate contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | (22) | (10) |
Interest rate contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 0 | 0 |
Foreign currency contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | (12) | (6) |
Contracts available for netting | 12 | 6 |
Cash collateral posted | 0 | 0 |
Net amount | 0 | 0 |
Foreign currency contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | 0 | 0 |
Foreign currency contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | (12) | (6) |
Foreign currency contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross amount | $ 0 | $ 0 |
Risk Management - Effect of Der
Risk Management - Effect of Derivative Contracts on the Income Statement (Details) - Derivatives designated as hedging instruments - Derivatives in fair value hedging relationships - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest rate contracts | Interest, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) recognized in income on derivative and related hedged item | $ (217) | $ 433 |
Hedged fixed rate debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cumulative amount of fair value hedging adjustments to hedged fixed rate debt | 484 | |
Hedged fixed rate debt | Interest, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) recognized in income on derivative and related hedged item | $ 219 | $ (440) |
Risk Management - Effect on Inc
Risk Management - Effect on Income Statement Locations (Details) - Derivatives in cash flow hedging relationships - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative [Line Items] | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ (35) | |
Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Gain/(loss) recognized in OCI on derivative | (203) | $ 289 |
Gain/(loss) reclassified from Accumulated OCI into income | (77) | (48) |
Derivatives designated as hedging instruments | Energy commodity derivative contracts | ||
Derivative [Line Items] | ||
Gain/(loss) recognized in OCI on derivative | (158) | 379 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gain/(loss) recognized in OCI on derivative | 1 | (8) |
Derivatives designated as hedging instruments | Foreign currency contracts | ||
Derivative [Line Items] | ||
Gain/(loss) recognized in OCI on derivative | (46) | (82) |
Revenues—Commodity sales | Derivatives designated as hedging instruments | Energy commodity derivative contracts | ||
Derivative [Line Items] | ||
Gain/(loss) reclassified from Accumulated OCI into income | (20) | (8) |
Cost of sales | Derivatives designated as hedging instruments | Energy commodity derivative contracts | ||
Derivative [Line Items] | ||
Gain/(loss) reclassified from Accumulated OCI into income | 4 | (17) |
Earnings from Equity Investments | Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gain/(loss) reclassified from Accumulated OCI into income | 0 | 0 |
Other, net | Derivatives designated as hedging instruments | Foreign currency contracts | ||
Derivative [Line Items] | ||
Gain/(loss) reclassified from Accumulated OCI into income | (61) | (23) |
Write-Down Of Hedged Inventory | Derivatives designated as hedging instruments | Energy commodity derivative contracts | ||
Derivative [Line Items] | ||
Gain/(loss) reclassified from Accumulated OCI into income | $ 6 | $ 12 |
Risk Management - Effect on I_2
Risk Management - Effect on Income Statement Not Designated (Details) - Derivatives Not Designated as Accounting Hedges - Energy commodity derivative contracts - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative [Line Items] | ||
Gain/(loss) recognized in income on derivatives | $ (468) | $ 121 |
Gain/(loss) on settlement of derivative contracts | (448) | 74 |
Revenues—Commodity sales | ||
Derivative [Line Items] | ||
Gain/(loss) recognized in income on derivatives | (631) | 117 |
Cost of sales | ||
Derivative [Line Items] | ||
Gain/(loss) recognized in income on derivatives | $ 163 | $ 4 |
Risk Management - Credit Risks
Risk Management - Credit Risks (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Credit Derivatives [Line Items] | ||
Additional Collateral, Aggregate Fair Value | $ 67 | |
Energy commodity derivative contracts | ||
Credit Derivatives [Line Items] | ||
Letter of credits outstanding, amount | 0 | $ 0 |
Initial Margin Requirements | 24 | |
Variation Margin Requirements | 6 | |
Cash collateral posted | 6 | (8) |
Other current liabilities | Cash collateral held | Energy commodity derivative contracts | ||
Credit Derivatives [Line Items] | ||
Collateral posted | $ 3 | |
Restricted Cash | Cash collateral held | Energy commodity derivative contracts | ||
Credit Derivatives [Line Items] | ||
Cash collateral posted | $ 30 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 5,495 | $ 2,686 |
Leasing services | 316 | 294 |
Other | 51 | 22 |
Total other revenues | (284) | 420 |
Total revenues | 5,211 | 3,106 |
Natural Gas Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4,110 | 1,861 |
Products Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 453 | 495 |
Terminals | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 419 | 441 |
CO2 | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 229 | 309 |
Operating Segments | Natural Gas Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 4,583 | 1,695 |
Leasing services | 119 | 113 |
Other | 41 | 15 |
Total other revenues | (458) | 180 |
Total revenues | 4,125 | 1,875 |
Operating Segments | Products Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 405 | 448 |
Leasing services | 43 | 42 |
Other | 5 | 5 |
Total other revenues | 48 | 47 |
Total revenues | 453 | 495 |
Operating Segments | Terminals | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 277 | 313 |
Leasing services | 143 | 129 |
Other | 0 | 0 |
Total other revenues | 143 | 129 |
Total revenues | 420 | 442 |
Operating Segments | CO2 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 245 | 245 |
Leasing services | 12 | 10 |
Other | 5 | 2 |
Total other revenues | (16) | 64 |
Total revenues | 229 | 309 |
Corporate and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (15) | (15) |
Leasing services | (1) | 0 |
Other | 0 | 0 |
Total other revenues | (1) | 0 |
Total revenues | (16) | (15) |
Firm services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,116 | 1,133 |
Firm services | Operating Segments | Natural Gas Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 866 | 865 |
Firm services | Operating Segments | Products Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 59 | 79 |
Firm services | Operating Segments | Terminals | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 191 | 189 |
Firm services | Operating Segments | CO2 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Firm services | Corporate and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Fee-based services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 495 | 587 |
Fee-based services | Operating Segments | Natural Gas Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 178 | 193 |
Fee-based services | Operating Segments | Products Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 221 | 260 |
Fee-based services | Operating Segments | Terminals | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 81 | 121 |
Fee-based services | Operating Segments | CO2 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 15 | 13 |
Fee-based services | Corporate and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Total services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,611 | 1,720 |
Total services | Operating Segments | Natural Gas Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,044 | 1,058 |
Total services | Operating Segments | Products Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 280 | 339 |
Total services | Operating Segments | Terminals | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 272 | 310 |
Total services | Operating Segments | CO2 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 15 | 13 |
Total services | Corporate and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Natural gas sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,315 | 499 |
Natural gas sales | Operating Segments | Natural Gas Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,319 | 501 |
Natural gas sales | Operating Segments | Products Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Natural gas sales | Operating Segments | Terminals | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Natural gas sales | Operating Segments | CO2 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1 | 0 |
Natural gas sales | Corporate and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (5) | (2) |
Product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 569 | 467 |
Product sales | Operating Segments | Natural Gas Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 220 | 136 |
Product sales | Operating Segments | Products Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 125 | 109 |
Product sales | Operating Segments | Terminals | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 5 | 3 |
Product sales | Operating Segments | CO2 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 229 | 232 |
Product sales | Corporate and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (10) | (13) |
Total commodity sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,884 | 966 |
Total revenues | 3,229 | 1,067 |
Total commodity sales | Operating Segments | Natural Gas Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,539 | 637 |
Total commodity sales | Operating Segments | Products Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 125 | 109 |
Total commodity sales | Operating Segments | Terminals | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 5 | 3 |
Total commodity sales | Operating Segments | CO2 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 230 | 232 |
Total commodity sales | Corporate and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | (15) | (15) |
Revenues—Commodity sales | ||
Disaggregation of Revenue [Line Items] | ||
Derivatives adjustments on commodity sales | (651) | 104 |
Revenues—Commodity sales | Operating Segments | Natural Gas Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Derivatives adjustments on commodity sales | (618) | 52 |
Revenues—Commodity sales | Operating Segments | Products Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Derivatives adjustments on commodity sales | 0 | 0 |
Revenues—Commodity sales | Operating Segments | Terminals | ||
Disaggregation of Revenue [Line Items] | ||
Derivatives adjustments on commodity sales | 0 | 0 |
Revenues—Commodity sales | Operating Segments | CO2 | ||
Disaggregation of Revenue [Line Items] | ||
Derivatives adjustments on commodity sales | (33) | 52 |
Revenues—Commodity sales | Corporate and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Derivatives adjustments on commodity sales | $ 0 | $ 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Contract Assets | ||
Contract assets balances | $ 31 | $ 20 |
Transfer to Accounts receivable | 9 | |
Contract Liabilities | ||
Contract liabilities balances | 243 | $ 239 |
Transfer to Revenues | $ 24 |
Revenue Recognition - Revenue A
Revenue Recognition - Revenue Allocated to Remaining Performance Obligations (Details) $ in Millions | Mar. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue allocated to remaining performance obligations for contracted revenue | $ 28,043 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period of recognition | 9 months |
Revenue allocated to remaining performance obligations for contracted revenue | $ 3,276 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period of recognition | 1 year |
Revenue allocated to remaining performance obligations for contracted revenue | $ 3,626 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period of recognition | 1 year |
Revenue allocated to remaining performance obligations for contracted revenue | $ 2,924 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period of recognition | 1 year |
Revenue allocated to remaining performance obligations for contracted revenue | $ 2,508 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period of recognition | 1 year |
Revenue allocated to remaining performance obligations for contracted revenue | $ 2,124 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period of recognition | |
Revenue allocated to remaining performance obligations for contracted revenue | $ 13,585 |
Reportable Segments Reportable
Reportable Segments Reportable Segments Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 5,211 | $ 3,106 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | (16) | (15) |
Natural Gas Pipelines | ||
Segment Reporting Information [Line Items] | ||
Revenues | 4,110 | 1,861 |
Natural Gas Pipelines | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | (15) | (14) |
Products Pipelines | ||
Segment Reporting Information [Line Items] | ||
Revenues | 453 | 495 |
Terminals | ||
Segment Reporting Information [Line Items] | ||
Revenues | 419 | 441 |
Terminals | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | (1) | (1) |
CO2 | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 229 | $ 309 |
Reportable Segments Reportabl_2
Reportable Segments Reportable Segments EBDA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
DD&A | $ (541) | $ (565) |
Amortization of excess cost of equity investments | (22) | (32) |
General and administrative and corporate charges | (156) | (153) |
Income Tax Expense | (351) | (60) |
Net Income (Loss) | 1,425 | (291) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Segment EBDA | 2,864 | 967 |
Corporate and intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
DD&A | (541) | (565) |
Amortization of excess cost of equity investments | (22) | (32) |
General and administrative and corporate charges | (148) | (165) |
Interest, net | (377) | (436) |
Income Tax Expense | (351) | (60) |
Natural Gas Pipelines | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Segment EBDA | 2,103 | 1,196 |
Products Pipelines | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Segment EBDA | 248 | 269 |
Terminals | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Segment EBDA | 227 | 257 |
CO2 | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Segment EBDA | $ 286 | $ (755) |
Reportable Segments Reportabl_3
Reportable Segments Reportable Segments Assets (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Assets | $ 71,208 | $ 71,973 |
Corporate and intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,717 | 3,077 |
Natural Gas Pipelines | ||
Segment Reporting Information [Line Items] | ||
Assets | 48,262 | 48,597 |
Products Pipelines | ||
Segment Reporting Information [Line Items] | ||
Assets | 9,152 | 9,182 |
Terminals | ||
Segment Reporting Information [Line Items] | ||
Assets | 8,560 | 8,639 |
CO2 | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 2,517 | $ 2,478 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Income tax expense | $ 351 | $ 60 |
Effective tax rate | 19.80% | (26.00%) |
Statutory federal rate | 21.00% | 21.00% |
CO2 | ||
Segment Reporting Information [Line Items] | ||
Impairment of goodwill | $ 0 | $ 600 |
Litigation and Environmental -
Litigation and Environmental - Federal Energy Regulatory Commission Proceedings (Details) - Pending Litigation $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($) | Jun. 01, 2018projects | |
Hiland Partners Holdings, LLC [Member] | ||
Loss Contingencies [Line Items] | ||
Infrastructures to Build for Settlement | projects | 10 | |
Loss Contingency, Damages Sought, Value | $ 225 | |
Reparations, Refunds, and Rate Reductions Not Resolved in East Line Settlement | Unfavorable Regulatory Action | Federal Energy Regulatory Commission [Member] | SFPP | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 50 |
Litigation and Environmental _2
Litigation and Environmental - General (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Estimated Litigation Liability | $ 130 | $ 273 |
Litigation and Environmental _3
Litigation and Environmental - Portland Harbor (Details) - Environmental Protection Agency - Portland Harbor Superfund Site, Willamette River, Portland, Oregon $ in Billions | 3 Months Ended |
Mar. 31, 2021USD ($)TerminalsParties | |
GATX Terminals Corporation (n/k/a KMLT) | |
Site Contingency [Line Items] | |
Number of Parties Involved In Site Cleanup Allocation Negotiations | Parties | 90 |
Number of Liquid Terminals | 2 |
GATX Terminals Corporation (n/k/a KMLT) | Pro Forma | |
Site Contingency [Line Items] | |
Estimated Remedy Implementation Period | 10 years |
Environmental Remediation Expense | $ | $ 3 |
KMBT | |
Site Contingency [Line Items] | |
Number of Liquid Terminals | 2 |
Litigation and Environmental _4
Litigation and Environmental - Lower Passaic River (Details) - Pending Litigation $ in Millions | Oct. 05, 2016USD ($)mi | Mar. 04, 2016USD ($)mi | Mar. 31, 2021Partiesmi |
Lower Passaic River Study Area | |||
Site Contingency [Line Items] | |||
Miles of river | mi | 17 | ||
Number of Parties at a Joint Defense Group | Parties | 44 | ||
Lower Passaic River Study Area | EPA preferred alternative estimate | |||
Site Contingency [Line Items] | |||
Environmental Remediation Expense | $ | $ 1,700 | ||
Lower Passaic River Study Area | AOC required engineering and design work | |||
Site Contingency [Line Items] | |||
Environmental Remediation Expense | $ | $ 165 | ||
Lower Passaic River Study Area | Design | |||
Site Contingency [Line Items] | |||
Estimated Remedy Implementation Period | 4 years | ||
Lower Passaic River Study Area | Clean Up Implementation | |||
Site Contingency [Line Items] | |||
Estimated Remedy Implementation Period | 6 years | ||
Lower Passaic River Study Area, Lower Portion | |||
Site Contingency [Line Items] | |||
Miles of river | mi | 8 | 8 | 8 |
Litigation and Environmental _5
Litigation and Environmental - Environmental Matters (Details) | Apr. 16, 2019 | Mar. 29, 2019Parties | Nov. 08, 2013Parties | Dec. 31, 1969 | Mar. 31, 2021cases |
Parish of Plaquemines, Louisiana | Coastal Zone | TGP | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Number of Defendants | Parties | 17 | ||||
Parish Orleans, Louisiana | Coastal Zone | SNG | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Number of Defendants | Parties | 10 | ||||
Judicial District of Louisiana | Coastal Zone | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Pending Claims, Number | 40 | ||||
Judicial District of Louisiana | Coastal Zone | TGP | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Pending Claims, Number | 1 | ||||
Judicial District of Louisiana | Coastal Zone | SNG | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Pending Claims, Number | 1 | ||||
Louisiana Landowner Coastal Erosion Litigation | Judicial District of Louisiana | TGP and SNG | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Pending Claims, Number | 1 | ||||
Louisiana Landowner Coastal Erosion Litigation | Judicial District of Louisiana | TGP | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Pending Claims, Number | 3 | ||||
Louisiana Landowner Coastal Erosion Litigation | Judicial District of Louisiana | SNG | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Pending Claims, Number | 2 | ||||
Uranium Mines in Arizona | EPNG [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of Uranium Mines | 20 | ||||
Percentage of Response Costs | 35.00% |
Litigation and Environmental _6
Litigation and Environmental - Environmental Matters General (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for Environmental Loss Contingencies | $ 256 | $ 250 |
Recorded Third-Party Environmental Recoveries Receivable | $ 12 | $ 12 |