Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2018shares | |
Document Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Entity Registrant Name | Panhandle Eastern Pipe Line Co LP |
Entity Central Index Key | 76,063 |
Document Period End Date | Jun. 30, 2018 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 6 | $ 2 |
Accounts receivable, net | 38 | 45 |
Accounts receivable from related companies | 12 | 12 |
Exchanges receivable | 10 | 5 |
Inventories | 86 | 150 |
Other current assets | 1 | 3 |
Total current assets | 153 | 217 |
Property, plant and equipment: | ||
Property, plant and equipment | 3,230 | 3,199 |
Accumulated depreciation | (475) | (419) |
Net property, plant and equipment | 2,755 | 2,780 |
Other non-current assets, net | 173 | 167 |
Goodwill | 23 | 23 |
Total assets | 3,104 | 3,187 |
Current liabilities: | ||
Current maturities of long-term debt | 155 | 407 |
Accounts payable and accrued liabilities | 3 | 3 |
Accounts payable to related companies | 33 | 32 |
Exchanges payable | 70 | 131 |
Other current liabilities | 61 | 53 |
Total current liabilities | 322 | 626 |
Long-term debt, less current maturities | 253 | 411 |
Note payable to related party | 426 | 113 |
Deferred income taxes | 467 | 451 |
Other non-current liabilities | 246 | 241 |
Commitments and contingencies | ||
Partners’ capital: | ||
Partners’ capital | 1,396 | 1,348 |
Accumulated other comprehensive loss | (6) | (3) |
Total partners’ capital | 1,390 | 1,345 |
Total liabilities and partners’ capital | $ 3,104 | $ 3,187 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING REVENUES: | ||||
Transportation and storage of natural gas | $ 131 | $ 100 | $ 273 | $ 223 |
Other | 3 | 4 | 10 | 9 |
Total operating revenues | 134 | 104 | 283 | 232 |
OPERATING EXPENSES: | ||||
Cost of natural gas and other energy | 1 | 1 | 2 | 2 |
Operating and maintenance | 54 | 46 | 101 | 97 |
General and administrative | 9 | 7 | 18 | 17 |
Depreciation and amortization | 30 | 32 | 60 | 63 |
Total operating expenses | 94 | 86 | 181 | 179 |
OPERATING INCOME | 40 | 18 | 102 | 53 |
OTHER INCOME (EXPENSE): | ||||
Interest expense, net | (8) | (11) | (18) | (23) |
Interest Expense, Related Party | (2) | 0 | (3) | 0 |
Interest income - affiliates | 0 | 4 | 0 | 8 |
Other, net | 1 | 2 | 2 | 1 |
INCOME BEFORE INCOME TAX EXPENSE | 31 | 13 | 83 | 39 |
Income tax expense | 9 | 5 | 27 | 17 |
NET INCOME | 22 | 8 | 56 | 22 |
OTHER COMPREHENSIVE LOSS, NET OF TAX | ||||
Actuarial loss relating to postretirement benefit plans | 0 | 0 | (1) | 0 |
COMPREHENSIVE INCOME | $ 22 | $ 8 | $ 55 | $ 22 |
CONSOLIDATED STATEMENT OF PARTN
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL - USD ($) $ in Millions | Total | Limited partner | Accumulated Other Comprehensive Loss |
Stockholders' Equity, Balance | $ 1,345 | $ 1,348 | $ (3) |
Distributions to partners | 24 | 24 | 0 |
Non-cash compensation expense | 2 | 2 | 0 |
Other comprehensive loss, net of tax | (1) | 0 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | (1) | ||
Deemed contribution from partners | 11 | 11 | 0 |
Other | (1) | 3 | (2) |
Net income | 56 | 0 | |
Stockholders' Equity, Balance | $ 1,390 | $ 1,396 | $ (6) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Capital Expenditures Incurred but Not yet Paid | $ 11 | $ 18 |
OPERATING ACTIVITIES: | ||
Net income | 56 | 22 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation and amortization | 60 | 63 |
Deferred income taxes | 17 | 19 |
Amortization of deferred financing fees | (9) | (13) |
Other non-cash | 5 | 8 |
Changes in operating assets and liabilities | 16 | (9) |
Net Cash Provided by (Used in) Operating Activities | 145 | 90 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (31) | (83) |
Repayment of Notes Receivable from Related Parties | 0 | 99 |
Notes receivable issued to related party | 0 | (30) |
Payments for (Proceeds from) Other Investing Activities | 0 | (3) |
Net cash flows used in investing activities | (31) | (11) |
FINANCING ACTIVITIES: | ||
Distributions to partners | 24 | 74 |
Repayments of Long-term Debt | (400) | 0 |
Note payable issued from related party | 380 | 0 |
Repayment of note payable from related party | 66 | 0 |
Net cash flows used in financing activities | (110) | (74) |
Net change in cash and cash equivalents | 4 | 5 |
Cash and cash equivalents, beginning of period | 2 | 4 |
Cash and cash equivalents, end of period | 6 | 9 |
SUPPLEMENTAL INFORMATION: | ||
Non-Cash Contribution | 11 | 5 |
Cash paid for interest | $ 14 | $ 37 |
Operations and Organization (No
Operations and Organization (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations and Organization | ORGANIZATION AND BASIS OF PRESENTATION Organization Panhandle Eastern Pipe Line Company, LP (“PEPL”) and its subsidiaries (collectively, the “Company”) primarily operate interstate pipelines that transport natural gas from the Gulf of Mexico, South Texas and the Panhandle region of Texas and Oklahoma to major United States markets in the Midwest and Great Lakes regions and natural gas storage assets and are subject to the rules and regulations of the FERC. The Company’s subsidiaries are Trunkline Gas Company, LLC (“Trunkline”), Sea Robin Pipeline Company, LLC (“Sea Robin”) and Pan Gas Storage LLC (“Southwest Gas”). Southern Union Panhandle LLC, an indirect wholly-owned subsidiary of ETP, owns a 1% general partner interest in PEPL and ETP indirectly owns a 99% limited partner interest in PEPL. Basis of Presentation The unaudited financial information included in this Form 10-Q has been prepared on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . In the opinion of the Company’s management, such financial information reflects all adjustments necessary for a fair presentation of the financial position and the results of operations for such interim periods in accordance with GAAP. All intercompany items and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the SEC. Use of Estimates The unaudited consolidated financial statements have been prepared in conformity with GAAP, which includes the use of estimates and assumptions made by management that affect the reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities that exist at the date of the consolidated financial statements. Although these estimates are based on management’s available knowledge of current and expected future events, actual results could be different from those estimates. Recent Accounting Pronouncements ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which establishes the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. In January 2018, the FASB issued Accounting Standards Update No. 2018-01, which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under Topic 840. The Company expects to adopt ASU 2016-02 and elect the practical expedient under ASU 2018-01in the first quarter of 2019 and is currently evaluating the impact that adopting this new standard will have on the consolidated financial statements and related disclosures. ASU 2018-02 In February 2018, the FASB issued Accounting Standards Update No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings at partners’ capital for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The Company elected to early adopted this ASU in the first quarter of 2018. The effect of the adoption was not material. Recently Adopted Pronouncements ASU 2014-09 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) (“ASU 2014-09”), which clarifies the principles for recognizing revenue based on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 on January 1, 2018. The Company has made appropriate design and implementation updates to our business processes, systems and internal controls to support recognition and disclosure under the new standard. Utilizing the practical expedients allowed under the modified retrospective adoption method, Accounting Standards Codification (“ASC”) Topic 606 was only applied to existing contracts for which the Company has remaining performance obligations as of January 1, 2018, and new contracts entered into after January 1, 2018. ASC Topic 606 was not applied to contracts that were completed prior to January 1, 2018. The Company has elected to apply the modified retrospective method to adopt the new standard. For contracts in scope of the new revenue standard as of January 1, 2018, the cumulative effect of adjustment to partners’ capital was not material. The comparative information has not been restated under the modified retrospective method and continues to be reported under the accounting standards in effect for those periods. The adoption of the new revenue standard by the Company resulted in no reclassifications between revenue, cost of sales and operating expenses. There were no changes in the timing of recognition of revenue and therefore no impact to the balance sheet upon adoption. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Accounts receivable from related companies reflected on the consolidated balance sheets primarily related to services provided to ETE, ETP and other affiliates. Accounts payable to related companies reflected on the consolidated balance sheets related to various services provided by ETP and other affiliates. The following table provides a summary of the related party activity included in the consolidated statements of operations: Three Months Ended Six Months Ended 2018 2017 2018 2017 Operating revenues $ 24 $ 3 $ 47 $ 7 Operating and maintenance 1 2 2 4 General and administrative 5 5 11 11 Interest expense — affiliate 2 — 3 — Interest income — affiliate — 4 — 8 The Company settled related party payables with a subsidiary of ETP through non-cash contributions during the six months ended June 30, 2018 and 2017 for $11 million and $5 million , respectively. |
FAIR VALUE MEASURES Fair Value
FAIR VALUE MEASURES Fair Value (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE MEASURES The Company had $21 million of fair value of available for sale securities, included in other non-current assets, at both June 30, 2018 and December 31, 2017 . At June 30, 2018 and December 31, 2017 , $14 million in equity securities were valued at Level 1 and $7 million in fixed income securities were valued at Level 2. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value. Based on the estimated borrowing rates currently available to the Company and its subsidiaries for loans with similar terms and average maturities, the aggregate fair value of the Company’s consolidated debt obligations was $406 million and $830 million at June 30, 2018 and December 31, 2017 , respectively. The fair value of the Company’s consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities. The Company did not have any Level 3 instruments measured at fair value at June 30, 2018 or December 31, 2017 , and there were no transfers between hierarchy levels during the periods presented. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies Disclosure | REGULATORY MATTERS, COMMITMENTS, CONTINGENCIES AND ENVIRONMENTAL LIABILITIES Contingent Residual Support Agreement with ETP Under a contingent residual support agreement with ETP and Citrus ETP Finance LLC, the Company provides contingent, residual support to Citrus ETP Finance LLC (on a non-recourse basis to the Company) with respect to Citrus ETP Finance LLC’s obligations to ETP to support the payment of $2 billion in principal amount of senior notes issued by ETP on January 17, 2012. FERC Audit In March 2016, the FERC commenced an audit of Trunkline for the period from January 1, 2013 to present to evaluate Trunkline’s compliance with the requirements of its FERC gas tariff, the accounting regulations of the Uniform System of Accounts as prescribed by the FERC, and the FERC’s annual reporting requirements. The audit is ongoing. Environmental Matters The Company’s operations are subject to federal, state and local laws, rules and regulations regarding water quality, hazardous and solid waste management, air quality control and other environmental matters. These laws, rules and regulations require the Company to conduct its operations in a specified manner and to obtain and comply with a wide variety of environmental regulations, licenses, permits, inspections and other approvals. Failure to comply with environmental laws, rules and regulations may expose the Company to significant fines, penalties and/or interruptions in operations. The Company’s environmental policies and procedures are designed to achieve compliance with such applicable laws and regulations. These evolving laws and regulations and claims for damages to property, employees, other persons and the environment resulting from current or past operations may result in significant expenditures and liabilities in the future. The Company engages in a process of updating and revising its procedures for the ongoing evaluation of its operations to identify potential environmental exposures and enhance compliance with regulatory requirements. The Company is responsible for environmental remediation at certain sites on its natural gas transmission systems for contamination resulting from the past use of lubricants containing PCBs in compressed air systems; the past use of paints containing PCBs; and the prior use of wastewater collection facilities and other on-site disposal areas. The Company has implemented a program to remediate such contamination. The primary remaining remediation activity on the Company’s systems is associated with past use of paints containing PCBs or PCB impacts to equipment surfaces and to a building at one location. The PCB assessments are ongoing and the related estimated remediation costs are subject to further change. Other remediation typically involves the management of contaminated soils and may involve remediation of groundwater. Activities vary with site conditions and locations, the extent and nature of the contamination, remedial requirements, complexity and sharing of responsibility. The ultimate liability and total costs associated with these sites will depend upon many factors. If remediation activities involve statutory joint and several liability provisions, strict liability, or cost recovery or contribution actions, the Company could potentially be held responsible for contamination caused by other parties. In some instances, the Company may share liability associated with contamination with other potentially responsible parties. The Company may also benefit from contractual indemnities that cover some or all of the cleanup costs. These sites are generally managed in the normal course of business or operations. The Company’s environmental remediation activities are undertaken in cooperation with and under the oversight of appropriate regulatory agencies, enabling the Company under certain circumstances to take advantage of various voluntary cleanup programs in order to perform the remediation in the most effective and efficient manner. The Company’s consolidated balance sheets reflected $2 million in non-current liabilities as of June 30, 2018 and December 31, 2017 to cover environmental remediation actions where management believes a loss is probable and reasonably estimable. The Company is not able to estimate the possible loss or range of loss in excess of amounts accrued. The Company does not have any material environmental remediation matters assessed as reasonably possible. Liabilities for Litigation and Other Claims The Company records accrued liabilities for litigation and other claim costs when management believes a loss is probable and reasonably estimable. When management believes there is at least a reasonable possibility that a material loss or an additional material loss may have been incurred, the Company discloses (i) an estimate of the possible loss or range of loss in excess of the amount accrued; or (ii) a statement that such an estimate cannot be made. As of June 30, 2018 and December 31, 2017 , the Company has litigation and other claim-related accrued liabilities of $20 million and $21 million , respectively, included in other non-current liabilities on the consolidated balance sheets. The Company does not have any material litigation or other claim contingency matters assessed as probable or reasonably possible that would require disclosure in the financial statements. Other Commitments and Contingencies The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment (the transfer of property to the state) of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. The Company is currently being examined by a third party auditor on behalf of nine states for compliance with unclaimed property laws. |
REVENUE (Notes)
REVENUE (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Revenues [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE The following disclosures discuss the Company’s revised revenue recognition policies upon the adoption of ASU 2014-09 on January 1, 2018, as discussed in Note 1 . These policies were applied to the current period only, and the amounts reflected in the Company’s consolidated financial statements for the six months ended June 30, 2017 were recorded under the Company’s previous accounting policies. Our revenues are determined primarily by the amount of capacity our customers reserve as well as the actual volume of natural gas that flows through pipelines. Under transportation and storage contracts, customers are charged (i) a demand fee, which is a fixed fee for the reservation of an agreed amount of capacity on the transportation pipeline for a specified period of time and which obligates the customer to pay even if the customer does not transport natural gas on the respective pipeline, (ii) a transportation fee, which is based on the actual throughput of natural gas by the customer, (iii) fuel retention based on a percentage of gas transported on the pipeline, or (iv) a combination of the three, generally payable monthly. The performance obligation with respect to these contracts is a promise to provide a single type of service daily over the life of the contract, which is fundamentally a “stand-ready” service. While there can be multiple activities required to be performed, these activities are not separable because such activities in combination are required to successfully transfer the overall service for which the customer has contracted. The fixed consideration of the transaction price is allocated ratably over the life of the contract and revenue should be recognized over time because the customer simultaneously receives and consumes the benefit of this service. Contract Balances with Customers The Company satisfies its obligations by transferring goods or services in exchange for consideration from customers. The timing of performance may differ from the timing the associated consideration is paid to or received from the customer, thus resulting in the recognition of a contract asset or a contract liability. The Company recognizes a contract asset when making upfront consideration payments to certain customers or when providing services to customers prior to the time at which the Company is contractually allowed to bill for such services. As of June 30, 2018 , no contract assets have been recognized. The Company recognizes a contract liability if the customer's payment of consideration precedes the Company’s fulfillment of the performance obligations. As of June 30, 2018 , no contract liabilities have been recognized. Performance Obligation At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. For a contract that has more than one performance obligation, the Company allocates the total contract consideration it expects to be entitled to, to each distinct performance obligation based on a standalone-selling price basis. Revenue is recognized when (or as) the performance obligations are satisfied, that is, when the customer obtains control of the good or service. Certain of our contracts contain variable components, which, when combined with the fixed component are considered a single performance obligation. For these types of contacts, only the fixed component of the contracts are included in the table below. As of June 30, 2018 , the aggregate amount of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is approximately $3.06 billion and the Company expects to recognize this amount as revenue within the time bands illustrated below: 2018 (remainder) 2019 2020 Thereafter Total Revenue expected to be recognized on contracts with customers existing as of June 30, 2018 $ 225 $ 425 $ 341 $ 2,067 $ 3,058 Practical Expedients Utilized by the Company The Company elected the following practical expedients in accordance with Topic 606: • Right to invoice - The Company elected to utilize an output method to recognize revenue that is based on the amount to which the Company has a right to invoice a customer for services performed to date, if that amount corresponds directly with the value provided to the customer for the related performance or its obligation completed to date. As such, the Company recognized revenue in the amount to which it had the right to invoice customers. • Significant financing component - The Company elected not to adjust the promised amount of consideration for the effects of significant financing component if the Company expects, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. • Unearned variable consideration - The Company elected to only disclose the unearned fixed consideration associated with unsatisfied performance obligations related to our various customer contracts which contain both fixed and variable components. |
OPERATIONS AND ORGANIZATION Ope
OPERATIONS AND ORGANIZATION Operations and Organization (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation The unaudited financial information included in this Form 10-Q has been prepared on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . In the opinion of the Company’s management, such financial information reflects all adjustments necessary for a fair presentation of the financial position and the results of operations for such interim periods in accordance with GAAP. All intercompany items and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the SEC. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The unaudited consolidated financial statements have been prepared in conformity with GAAP, which includes the use of estimates and assumptions made by management that affect the reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities that exist at the date of the consolidated financial statements. Although these estimates are based on management’s available knowledge of current and expected future events, actual results could be different from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which establishes the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. In January 2018, the FASB issued Accounting Standards Update No. 2018-01, which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under Topic 840. The Company expects to adopt ASU 2016-02 and elect the practical expedient under ASU 2018-01in the first quarter of 2019 and is currently evaluating the impact that adopting this new standard will have on the consolidated financial statements and related disclosures. ASU 2018-02 In February 2018, the FASB issued Accounting Standards Update No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings at partners’ capital for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The Company elected to early adopted this ASU in the first quarter of 2018. The effect of the adoption was not material. Recently Adopted Pronouncements ASU 2014-09 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) (“ASU 2014-09”), which clarifies the principles for recognizing revenue based on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 on January 1, 2018. The Company has made appropriate design and implementation updates to our business processes, systems and internal controls to support recognition and disclosure under the new standard. Utilizing the practical expedients allowed under the modified retrospective adoption method, Accounting Standards Codification (“ASC”) Topic 606 was only applied to existing contracts for which the Company has remaining performance obligations as of January 1, 2018, and new contracts entered into after January 1, 2018. ASC Topic 606 was not applied to contracts that were completed prior to January 1, 2018. The Company has elected to apply the modified retrospective method to adopt the new standard. For contracts in scope of the new revenue standard as of January 1, 2018, the cumulative effect of adjustment to partners’ capital was not material. The comparative information has not been restated under the modified retrospective method and continues to be reported under the accounting standards in effect for those periods. The adoption of the new revenue standard by the Company resulted in no reclassifications between revenue, cost of sales and operating expenses. There were no changes in the timing of recognition of revenue and therefore no impact to the balance sheet upon adoption. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions [table text block] | The following table provides a summary of the related party activity included in the consolidated statements of operations: Three Months Ended Six Months Ended 2018 2017 2018 2017 Operating revenues $ 24 $ 3 $ 47 $ 7 Operating and maintenance 1 2 2 4 General and administrative 5 5 11 11 Interest expense — affiliate 2 — 3 — Interest income — affiliate — 4 — 8 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenues [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | As of June 30, 2018 , the aggregate amount of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is approximately $3.06 billion and the Company expects to recognize this amount as revenue within the time bands illustrated below: 2018 (remainder) 2019 2020 Thereafter Total Revenue expected to be recognized on contracts with customers existing as of June 30, 2018 $ 225 $ 425 $ 341 $ 2,067 $ 3,058 |
Operations and Organizaton (Det
Operations and Organizaton (Details) - Panhandle [Member] | 6 Months Ended |
Jun. 30, 2018 | |
General partnership | |
Description of the Business | |
General partnership interest | 1.00% |
Limited partner | |
Description of the Business | |
Limited partnership interest | 99.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transactions [Abstract] | ||||
Operating revenues | $ 24 | $ 3 | $ 47 | $ 7 |
Operating and maintenance | 1 | 2 | 2 | 4 |
General and administrative | 5 | 5 | 11 | 11 |
Interest income - affiliates | 0 | 4 | 0 | 8 |
Interest Expense, Related Party | $ 2 | $ 0 | $ 3 | $ 0 |
Related Party (Narrative) (Deta
Related Party (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transactions [Abstract] | ||
Deemed contribution from partners | $ 11 | $ 5 |
FAIR VALUE MEASURES Fair Valu17
FAIR VALUE MEASURES Fair Value Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Investments, Fair Value Disclosure | $ 21 | |
Debt Instrument, Fair Value Disclosure | 406 | $ 830 |
Equity Securities [Member] | ||
Investments, Fair Value Disclosure | 14 | |
Fixed Income Securities [Member] | ||
Investments, Fair Value Disclosure | $ 7 |
DEBT OBLIGATIONS (Details)
DEBT OBLIGATIONS (Details) $ in Millions | Jun. 30, 2018USD ($) |
Senior Notes due 2018 [Member] | |
Senior Notes, Current | $ 400 |
Commitment and Contingenices (N
Commitment and Contingenices (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | ||
Contingent Residual Support Agreement, Amount | $ 2,000 | |
Accrued Environmental Loss Contingencies, Noncurrent | 2 | |
Estimated litigation liability | $ 20 | $ 21 |
REVENUE (Details)
REVENUE (Details) | Jun. 30, 2018USD ($) |
Revenues [Abstract] | |
Contract with Customer, Asset, Gross | $ 0 |
Contract with Customer, Liability | $ 0 |
Uncategorized Items - pepl-2018
Label | Element | Value |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date Axis: 2018-12-31 | ||
Revenue, Remaining Performance Obligation | us-gaap_RevenueRemainingPerformanceObligation | $ 225,000,000 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date Axis: 2020-12-31 | ||
Revenue, Remaining Performance Obligation | us-gaap_RevenueRemainingPerformanceObligation | 341,000,000 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date Axis: (nil) | ||
Revenue, Remaining Performance Obligation | us-gaap_RevenueRemainingPerformanceObligation | 3,058,000,000 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date Axis: 2019-12-31 | ||
Revenue, Remaining Performance Obligation | us-gaap_RevenueRemainingPerformanceObligation | 425,000,000 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date Axis: 2021-12-31 | ||
Revenue, Remaining Performance Obligation | us-gaap_RevenueRemainingPerformanceObligation | $ 2,067,000,000 |