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Name | Symbol | Market | Type |
---|---|---|---|
Energy Transfer Operating LP | NYSE:ETP-D | NYSE | Preference Share |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 22.91 | 0 | 01:00:00 |
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
73-1493906
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(State or other jurisdiction of incorporation or organization)
|
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(I.R.S. Employer Identification No.)
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Large accelerated filer
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¨
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Accelerated filer
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☐
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Non-accelerated filer
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ý
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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7.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
|
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ETPprC
|
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New York Stock Exchange
|
7.625% Series D Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
|
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ETPprD
|
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New York Stock Exchange
|
7.600% Series E Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
|
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ETPprE
|
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New York Stock Exchange
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4.250% Senior Notes due 2023
|
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ETP 23
|
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New York Stock Exchange
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5.875% Senior Notes due 2024
|
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ETP 24
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New York Stock Exchange
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5.500% Senior Notes due 2027
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ETP 27
|
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New York Stock Exchange
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/d
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per day
|
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AOCI
|
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accumulated other comprehensive income (loss)
|
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BBtu
|
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billion British thermal units
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Btu
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British thermal unit, an energy measurement used by gas companies to convert the volume of gas used to its heat equivalent, and thus calculate the actual energy used
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Citrus
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Citrus, LLC
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DOJ
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United States Department of Justice
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EPA
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United States Environmental Protection Agency
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ET
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Energy Transfer LP, the parent company of ETO
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ETP GP
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Energy Transfer Partners GP, L.P., the general partner of ETO
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ETP LLC
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Energy Transfer Partners, L.L.C., the general partner of ETP GP
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Exchange Act
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Securities Exchange Act of 1934
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FEP
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Fayetteville Express Pipeline LLC
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FERC
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Federal Energy Regulatory Commission
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FGT
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Florida Gas Transmission Company, LLC, a wholly-owned subsidiary of Citrus
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GAAP
|
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accounting principles generally accepted in the United States of America
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HFOTCO
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Houston Fuel Oil Terminal Company, a wholly-owned subsidiary of ETO, which owns the Houston Terminal
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Lake Charles LNG
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Lake Charles LNG Company, LLC, a wholly-owned subsidiary of ETO
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LIBOR
|
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London Interbank Offered Rate
|
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MBbls
|
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thousand barrels
|
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MEP
|
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Midcontinent Express Pipeline LLC
|
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MTBE
|
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methyl tertiary butyl ether
|
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NGL
|
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natural gas liquid, such as propane, butane and natural gasoline
|
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NYMEX
|
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New York Mercantile Exchange
|
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OSHA
|
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federal Occupational Safety and Health Act
|
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OTC
|
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over-the-counter
|
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Panhandle
|
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Panhandle Eastern Pipe Line Company, LP and its subsidiaries, wholly-owned by ETO
|
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PES
|
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Philadelphia Energy Solutions Refining and Marketing LLC, non-controlling interest owned by ETO
|
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Preferred Unitholders
|
|
Unitholders of the Series A Preferred Units, Series B Preferred Units, Series C Preferred Units, Series D Preferred Units, Series E Preferred Units, Series F Preferred Units and Series G Preferred Units, collectively
|
|
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Regency
|
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Regency Energy Partners LP, a wholly-owned subsidiary of ETO
|
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Rover
|
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Rover Pipeline LLC, a less than wholly-owned subsidiary of ETO
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SEC
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Securities and Exchange Commission
|
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SemCAMS
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SemCAMS Midstream ULC, a less than wholly-owned subsidiary of ETO
|
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SemGroup
|
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SemGroup, LLC (formerly SemGroup Corporation)
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Series A Preferred Units
|
|
6.250% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
|
|
|
|
|
|
Series B Preferred Units
|
|
6.625% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
|
|
|
|
|
|
Series C Preferred Units
|
|
7.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
|
|
|
|
|
|
Series D Preferred Units
|
|
7.625% Series D Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
|
|
|
|
|
|
Series E Preferred Units
|
|
7.600% Series E Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
|
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|
|
|
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Series F Preferred Units
|
|
6.750% Series F Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units
|
|
|
|
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Series G Preferred Units
|
|
7.125% Series G Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units
|
|
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SPLP
|
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Sunoco Pipeline L.P., a wholly-owned subsidiary of ETO
|
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Sunoco Logistics Operations
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Sunoco Logistics Partners Operations L.P., a wholly-owned subsidiary of ETO
|
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Sunoco R&M
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Sunoco (R&M), LLC
|
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Transwestern
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Transwestern Pipeline Company, LLC, a wholly-owned subsidiary of ETO
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Trunkline
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Trunkline Gas Company, LLC, a wholly-owned subsidiary of Panhandle
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USAC
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USA Compression Partners, LP, a wholly-owned subsidiary of ETO
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USAC Preferred Units
|
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USAC Series A Preferred Units
|
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White Cliffs
|
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White Cliffs Pipeline
|
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June 30,
2020 |
|
December 31, 2019*
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
152
|
|
|
$
|
288
|
|
Accounts receivable, net
|
2,955
|
|
|
5,038
|
|
||
Accounts receivable from related companies
|
139
|
|
|
167
|
|
||
Inventories
|
1,593
|
|
|
1,532
|
|
||
Income taxes receivable
|
68
|
|
|
147
|
|
||
Derivative assets
|
14
|
|
|
23
|
|
||
Other current assets
|
245
|
|
|
291
|
|
||
Total current assets
|
5,166
|
|
|
7,486
|
|
||
|
|
|
|
||||
Property, plant and equipment
|
91,774
|
|
|
89,294
|
|
||
Accumulated depreciation and depletion
|
(17,125
|
)
|
|
(15,398
|
)
|
||
|
74,649
|
|
|
73,896
|
|
||
|
|
|
|
||||
Advances to and investments in unconsolidated affiliates
|
3,306
|
|
|
3,454
|
|
||
Lease right-of-use assets, net
|
1,112
|
|
|
964
|
|
||
Other non-current assets, net
|
1,511
|
|
|
1,572
|
|
||
Notes receivable from related company
|
2,865
|
|
|
3,603
|
|
||
Intangible assets, net
|
6,007
|
|
|
6,154
|
|
||
Goodwill
|
3,868
|
|
|
5,167
|
|
||
Total assets
|
$
|
98,484
|
|
|
$
|
102,296
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019*
|
|
2020
|
|
2019*
|
||||||||
REVENUES:
|
|
|
|
|
|
|
|
||||||||
Refined product sales
|
$
|
2,000
|
|
|
$
|
4,477
|
|
|
$
|
5,232
|
|
|
$
|
8,203
|
|
Crude sales
|
1,329
|
|
|
4,346
|
|
|
4,872
|
|
|
7,871
|
|
||||
NGL sales
|
1,254
|
|
|
1,996
|
|
|
2,943
|
|
|
4,398
|
|
||||
Gathering, transportation and other fees
|
2,137
|
|
|
2,035
|
|
|
4,522
|
|
|
4,302
|
|
||||
Natural gas sales
|
514
|
|
|
763
|
|
|
1,102
|
|
|
1,727
|
|
||||
Other
|
104
|
|
|
260
|
|
|
294
|
|
|
497
|
|
||||
Total revenues
|
7,338
|
|
|
13,877
|
|
|
18,965
|
|
|
26,998
|
|
||||
COSTS AND EXPENSES:
|
|
|
|
|
|
|
|
||||||||
Cost of products sold
|
4,117
|
|
|
10,301
|
|
|
12,408
|
|
|
19,778
|
|
||||
Operating expenses
|
770
|
|
|
792
|
|
|
1,649
|
|
|
1,600
|
|
||||
Depreciation, depletion and amortization
|
934
|
|
|
781
|
|
|
1,799
|
|
|
1,552
|
|
||||
Selling, general and administrative
|
171
|
|
|
175
|
|
|
373
|
|
|
324
|
|
||||
Impairment losses
|
4
|
|
|
—
|
|
|
1,329
|
|
|
50
|
|
||||
Total costs and expenses
|
5,996
|
|
|
12,049
|
|
|
17,558
|
|
|
23,304
|
|
||||
OPERATING INCOME
|
1,342
|
|
|
1,828
|
|
|
1,407
|
|
|
3,694
|
|
||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
||||||||
Interest expense, net of interest capitalized
|
(578
|
)
|
|
(578
|
)
|
|
(1,178
|
)
|
|
(1,105
|
)
|
||||
Equity in earnings of unconsolidated affiliates
|
85
|
|
|
77
|
|
|
78
|
|
|
142
|
|
||||
Losses on extinguishments of debt
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
(2
|
)
|
||||
Losses on interest rate derivatives
|
(3
|
)
|
|
(122
|
)
|
|
(332
|
)
|
|
(196
|
)
|
||||
Other, net
|
(29
|
)
|
|
112
|
|
|
16
|
|
|
129
|
|
||||
INCOME (LOSS) BEFORE INCOME TAX EXPENSE
|
817
|
|
|
1,317
|
|
|
(68
|
)
|
|
2,662
|
|
||||
Income tax expense
|
98
|
|
|
35
|
|
|
127
|
|
|
161
|
|
||||
NET INCOME (LOSS)
|
719
|
|
|
1,282
|
|
|
(195
|
)
|
|
2,501
|
|
||||
Less: Net income attributable to noncontrolling interests
|
225
|
|
|
266
|
|
|
25
|
|
|
522
|
|
||||
Less: Net income attributable to redeemable noncontrolling interests
|
13
|
|
|
13
|
|
|
25
|
|
|
26
|
|
||||
Less: Net loss attributable to predecessor equity
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
||||
NET INCOME (LOSS) ATTRIBUTABLE TO PARTNERS
|
$
|
481
|
|
|
$
|
1,003
|
|
|
$
|
(239
|
)
|
|
$
|
1,953
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019*
|
|
2020
|
|
2019*
|
||||||||
Net income (loss)
|
$
|
719
|
|
|
$
|
1,282
|
|
|
$
|
(195
|
)
|
|
$
|
2,501
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Change in value of available-for-sale securities
|
9
|
|
|
3
|
|
|
—
|
|
|
8
|
|
||||
Actuarial gain related to pension and other postretirement benefit plans
|
8
|
|
|
3
|
|
|
14
|
|
|
10
|
|
||||
Foreign currency translation adjustments
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||
Change in other comprehensive loss from unconsolidated affiliates
|
—
|
|
|
(5
|
)
|
|
(16
|
)
|
|
(9
|
)
|
||||
|
47
|
|
|
1
|
|
|
28
|
|
|
9
|
|
||||
Comprehensive income (loss)
|
766
|
|
|
1,283
|
|
|
(167
|
)
|
|
2,510
|
|
||||
Less: Comprehensive income attributable to noncontrolling interests
|
225
|
|
|
266
|
|
|
25
|
|
|
522
|
|
||||
Less: Comprehensive income attributable to redeemable noncontrolling interests
|
13
|
|
|
13
|
|
|
25
|
|
|
26
|
|
||||
Less: Comprehensive loss attributable to predecessor equity
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
||||
Comprehensive income (loss) attributable to partners
|
$
|
528
|
|
|
$
|
1,004
|
|
|
$
|
(211
|
)
|
|
$
|
1,962
|
|
|
Limited Partners
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Preferred Unitholders
|
|
Common Unitholders
|
|
AOCI
|
|
Noncontrolling Interests
|
|
Predecessor Equity
|
|
Total
|
||||||||||||
Balance, December 31, 2019*
|
$
|
3,174
|
|
|
$
|
24,226
|
|
|
$
|
(18
|
)
|
|
$
|
8,018
|
|
|
$
|
2,025
|
|
|
$
|
37,425
|
|
Distributions to partners
|
(80
|
)
|
|
(2,550
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,630
|
)
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(340
|
)
|
|
(25
|
)
|
|
(365
|
)
|
||||||
Units issued for cash
|
1,580
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,580
|
|
||||||
Capital contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|
30
|
|
|
96
|
|
||||||
SemGroup contribution (See Note 2)
|
—
|
|
|
1,840
|
|
|
(2
|
)
|
|
333
|
|
|
(2,171
|
)
|
|
—
|
|
||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
(38
|
)
|
|
(57
|
)
|
||||||
Other, net
|
(3
|
)
|
|
(8
|
)
|
|
—
|
|
|
3
|
|
|
(10
|
)
|
|
(18
|
)
|
||||||
Net income (loss), excluding amounts attributable to redeemable noncontrolling interests
|
77
|
|
|
(797
|
)
|
|
—
|
|
|
(200
|
)
|
|
(6
|
)
|
|
(926
|
)
|
||||||
Balance, March 31, 2020*
|
4,748
|
|
|
22,711
|
|
|
(39
|
)
|
|
7,880
|
|
|
(195
|
)
|
|
35,105
|
|
||||||
Distributions to partners
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(67
|
)
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(340
|
)
|
|
—
|
|
|
(340
|
)
|
||||||
Capital contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
—
|
|
|
82
|
|
||||||
SemGroup contribution (See Note 2)
|
—
|
|
|
(630
|
)
|
|
(20
|
)
|
|
455
|
|
|
195
|
|
|
—
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
38
|
|
|
9
|
|
|
—
|
|
|
47
|
|
||||||
Other, net
|
(1
|
)
|
|
32
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
33
|
|
||||||
Net income, excluding amounts attributable to redeemable noncontrolling interests
|
84
|
|
|
397
|
|
|
—
|
|
|
225
|
|
|
—
|
|
|
706
|
|
||||||
Balance, June 30, 2020
|
$
|
4,764
|
|
|
$
|
22,510
|
|
|
$
|
(21
|
)
|
|
$
|
8,313
|
|
|
$
|
—
|
|
|
$
|
35,566
|
|
|
Limited Partners
|
|
|
|
|
|
|
||||||||||||
|
Preferred Unitholders
|
|
Common Unitholders
|
|
AOCI
|
|
Noncontrolling Interests
|
|
Total
|
||||||||||
Balance, December 31, 2018*
|
$
|
2,388
|
|
|
$
|
26,539
|
|
|
$
|
(42
|
)
|
|
$
|
7,903
|
|
|
$
|
36,788
|
|
Distributions to partners
|
(64
|
)
|
|
(1,450
|
)
|
|
—
|
|
|
—
|
|
|
(1,514
|
)
|
|||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(361
|
)
|
|
(361
|
)
|
|||||
Capital contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
140
|
|
|
140
|
|
|||||
Sale of noncontrolling interest in subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
93
|
|
|
93
|
|
|||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|||||
Other, net
|
—
|
|
|
15
|
|
|
—
|
|
|
13
|
|
|
28
|
|
|||||
Net income, excluding amounts attributable to redeemable noncontrolling interest
|
40
|
|
|
910
|
|
|
—
|
|
|
256
|
|
|
1,206
|
|
|||||
Balance, March 31, 2019*
|
2,364
|
|
|
26,014
|
|
|
(34
|
)
|
|
8,044
|
|
|
36,388
|
|
|||||
Distributions to partners
|
(18
|
)
|
|
(1,625
|
)
|
|
—
|
|
|
—
|
|
|
(1,643
|
)
|
|||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(370
|
)
|
|
(370
|
)
|
|||||
Units issued for cash
|
780
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
780
|
|
|||||
Capital contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|
66
|
|
|||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Other, net
|
(1
|
)
|
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|||||
Net income, excluding amounts attributable to redeemable noncontrolling interest
|
53
|
|
|
950
|
|
|
—
|
|
|
266
|
|
|
1,269
|
|
|||||
Balance, June 30, 2019*
|
$
|
3,178
|
|
|
$
|
25,303
|
|
|
$
|
(33
|
)
|
|
$
|
8,006
|
|
|
$
|
36,454
|
|
|
Six Months Ended
June 30, |
||||||
|
2020
|
|
2019*
|
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net income (loss)
|
$
|
(195
|
)
|
|
$
|
2,501
|
|
Reconciliation of net income (loss) to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, depletion and amortization
|
1,799
|
|
|
1,552
|
|
||
Deferred income taxes
|
126
|
|
|
140
|
|
||
Inventory valuation adjustments
|
137
|
|
|
(97
|
)
|
||
Non-cash compensation expense
|
63
|
|
|
58
|
|
||
Impairment losses
|
1,329
|
|
|
50
|
|
||
Losses on extinguishments of debt
|
59
|
|
|
2
|
|
||
Distributions on unvested awards
|
(3
|
)
|
|
(3
|
)
|
||
Equity in earnings of unconsolidated affiliates
|
(78
|
)
|
|
(142
|
)
|
||
Distributions from unconsolidated affiliates
|
125
|
|
|
170
|
|
||
Other non-cash
|
(12
|
)
|
|
(24
|
)
|
||
Net change in operating assets and liabilities, net of effects of acquisitions
|
27
|
|
|
(187
|
)
|
||
Net cash provided by operating activities
|
3,377
|
|
|
4,020
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Cash proceeds from sale of noncontrolling interest in subsidiary
|
—
|
|
|
93
|
|
||
Cash paid for all other acquisitions, net of cash received
|
—
|
|
|
(7
|
)
|
||
Capital expenditures, excluding allowance for equity funds used during construction
|
(2,892
|
)
|
|
(2,818
|
)
|
||
Contributions in aid of construction costs
|
47
|
|
|
41
|
|
||
Contributions to unconsolidated affiliates
|
(16
|
)
|
|
(254
|
)
|
||
Distributions from unconsolidated affiliates in excess of cumulative earnings
|
97
|
|
|
21
|
|
||
Proceeds from the sale of other assets
|
6
|
|
|
22
|
|
||
Other
|
(5
|
)
|
|
(40
|
)
|
||
Net cash used in investing activities
|
(2,763
|
)
|
|
(2,942
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from borrowings
|
16,975
|
|
|
16,463
|
|
||
Repayments of debt
|
(16,717
|
)
|
|
(14,705
|
)
|
||
Cash received from related company
|
676
|
|
|
180
|
|
||
Preferred units issued for cash
|
1,580
|
|
|
780
|
|
||
Capital contributions from noncontrolling interests
|
148
|
|
|
206
|
|
||
Predecessor capital contributions from noncontrolling interests
|
30
|
|
|
—
|
|
||
Distributions to partners
|
(2,697
|
)
|
|
(3,157
|
)
|
||
Distributions to noncontrolling interests
|
(680
|
)
|
|
(731
|
)
|
||
Predecessor distributions to noncontrolling interests
|
(25
|
)
|
|
—
|
|
||
Debt issuance costs
|
(50
|
)
|
|
(87
|
)
|
||
Other
|
10
|
|
|
(1
|
)
|
||
Net cash used in financing activities
|
(750
|
)
|
|
(1,052
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
(136
|
)
|
|
26
|
|
||
Cash and cash equivalents, beginning of period
|
288
|
|
|
418
|
|
||
Cash and cash equivalents, end of period
|
$
|
152
|
|
|
$
|
444
|
|
1.
|
ORGANIZATION AND BASIS OF PRESENTATION
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
As Originally Reported*
|
|
Effect of Change
|
|
As Adjusted
|
|
As Originally Reported
|
|
Effect of Change
|
|
As Adjusted
|
||||||||||||
Inventories
|
$
|
1,935
|
|
|
$
|
(403
|
)
|
|
$
|
1,532
|
|
|
$
|
1,677
|
|
|
$
|
(305
|
)
|
|
$
|
1,372
|
|
Total current assets
|
7,889
|
|
|
(403
|
)
|
|
7,486
|
|
|
6,820
|
|
|
(305
|
)
|
|
6,515
|
|
||||||
Other non-current assets, net
|
1,076
|
|
|
496
|
|
|
1,572
|
|
|
1,006
|
|
|
472
|
|
|
1,478
|
|
||||||
Total assets
|
102,203
|
|
|
93
|
|
|
102,296
|
|
|
88,442
|
|
|
167
|
|
|
88,609
|
|
||||||
Total partners’ capital
|
27,289
|
|
|
93
|
|
|
27,382
|
|
|
28,718
|
|
|
167
|
|
|
28,885
|
|
|
Year Ended December 31,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2019
|
||||||||
As originally reported:
|
|
|
|
|
|
|
|
||||||||
Consolidated Statements of Operations and Comprehensive Income
|
|
|
|
|
|
|
|
||||||||
Cost of products sold
|
$
|
39,603
|
|
|
$
|
41,658
|
|
|
$
|
10,302
|
|
|
$
|
19,717
|
|
Operating income
|
7,285
|
|
|
5,402
|
|
|
1,827
|
|
|
3,755
|
|
||||
Income from continuing operations before income tax expense
|
5,386
|
|
|
4,044
|
|
|
1,316
|
|
|
2,723
|
|
||||
Net income
|
5,186
|
|
|
3,774
|
|
|
1,281
|
|
|
2,562
|
|
||||
Comprehensive income
|
5,210
|
|
|
3,731
|
|
|
1,282
|
|
|
2,571
|
|
||||
Comprehensive income attributable to partners
|
4,108
|
|
|
2,982
|
|
|
1,003
|
|
|
2,023
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
||||||||
Net income
|
5,186
|
|
|
3,774
|
|
|
1,281
|
|
|
2,562
|
|
||||
Net change in operating assets and liabilities
|
(479
|
)
|
|
117
|
|
|
151
|
|
|
(248
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Effect of change:
|
|
|
|
|
|
|
|
||||||||
Consolidated Statements of Operations and Comprehensive Income
|
|
|
|
|
|
|
|
||||||||
Cost of products sold
|
74
|
|
|
(55
|
)
|
|
(1
|
)
|
|
61
|
|
||||
Operating income
|
(74
|
)
|
|
55
|
|
|
1
|
|
|
(61
|
)
|
||||
Income from continuing operations before income tax expense
|
(74
|
)
|
|
55
|
|
|
1
|
|
|
(61
|
)
|
||||
Net income
|
(74
|
)
|
|
55
|
|
|
1
|
|
|
(61
|
)
|
||||
Comprehensive income
|
(74
|
)
|
|
55
|
|
|
1
|
|
|
(61
|
)
|
||||
Comprehensive income attributable to partners
|
(74
|
)
|
|
55
|
|
|
1
|
|
|
(61
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
||||||||
Net income
|
(74
|
)
|
|
55
|
|
|
1
|
|
|
(61
|
)
|
||||
Net change in operating assets and liabilities
|
74
|
|
|
(55
|
)
|
|
(1
|
)
|
|
61
|
|
||||
|
|
|
|
|
|
|
|
||||||||
As adjusted:
|
|
|
|
|
|
|
|
||||||||
Consolidated Statements of Operations and Comprehensive Income
|
|
|
|
|
|
|
|
||||||||
Cost of products sold
|
39,677
|
|
|
41,603
|
|
|
10,301
|
|
|
19,778
|
|
||||
Operating income
|
7,211
|
|
|
5,457
|
|
|
1,828
|
|
|
3,694
|
|
||||
Income from continuing operations before income tax expense
|
5,312
|
|
|
4,099
|
|
|
1,317
|
|
|
2,662
|
|
||||
Net income
|
5,112
|
|
|
3,829
|
|
|
1,282
|
|
|
2,501
|
|
||||
Comprehensive income
|
5,136
|
|
|
3,786
|
|
|
1,283
|
|
|
2,510
|
|
||||
Comprehensive income attributable to partners
|
4,034
|
|
|
3,037
|
|
|
1,004
|
|
|
1,962
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
||||||||
Net income
|
5,112
|
|
|
3,829
|
|
|
1,282
|
|
|
2,501
|
|
||||
Net change in operating assets and liabilities
|
(405
|
)
|
|
62
|
|
|
150
|
|
|
(187
|
)
|
|
Intrastate
Transportation and Storage |
|
Interstate
Transportation and Storage |
|
Midstream
|
|
NGL and Refined Products Transportation and Services
|
|
Crude Oil Transportation and Services
|
|
Investment in Sunoco LP
|
|
Investment in USAC
|
|
All Other
|
|
Total
|
||||||||||||||||||
Balance, December 31, 2019
|
$
|
10
|
|
|
$
|
226
|
|
|
$
|
483
|
|
|
$
|
693
|
|
|
$
|
1,397
|
|
|
$
|
1,555
|
|
|
$
|
619
|
|
|
$
|
184
|
|
|
$
|
5,167
|
|
Impaired
|
—
|
|
|
(183
|
)
|
|
(483
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(619
|
)
|
|
(40
|
)
|
|
(1,325
|
)
|
|||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|||||||||
Balance, March 31, 2020
|
10
|
|
|
43
|
|
|
—
|
|
|
693
|
|
|
1,397
|
|
|
1,555
|
|
|
—
|
|
|
137
|
|
|
3,835
|
|
|||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
33
|
|
|||||||||
Balance, June 30, 2020
|
$
|
10
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
693
|
|
|
$
|
1,397
|
|
|
$
|
1,555
|
|
|
$
|
—
|
|
|
$
|
170
|
|
|
$
|
3,868
|
|
2.
|
ACQUISITIONS AND RELATED TRANSACTIONS
|
|
At December 5, 2019
|
||
Total current assets
|
$
|
794
|
|
Property, plant and equipment
|
3,891
|
|
|
Other non-current assets
|
617
|
|
|
Goodwill
|
295
|
|
|
Intangible assets
|
460
|
|
|
Total assets
|
6,057
|
|
|
|
|
||
Total current liabilities
|
629
|
|
|
Long-term debt, less current maturities (1)
|
2,576
|
|
|
Other non-current liabilities
|
197
|
|
|
SemCAMS Preferred shares
|
241
|
|
|
Total liabilities
|
3,643
|
|
|
|
|
||
Noncontrolling interest
|
822
|
|
|
|
|
||
Partners’ capital
|
1,592
|
|
|
Total liabilities and partners’ capital
|
$
|
6,057
|
|
3.
|
CASH AND CASH EQUIVALENTS
|
|
Six Months Ended
June 30, |
||||||
|
2020
|
|
2019
|
||||
Accounts receivable
|
$
|
2,084
|
|
|
$
|
(340
|
)
|
Accounts receivable from related companies
|
118
|
|
|
7
|
|
||
Inventories
|
(180
|
)
|
|
28
|
|
||
Other current assets
|
150
|
|
|
37
|
|
||
Other non-current assets, net
|
(159
|
)
|
|
(43
|
)
|
||
Accounts payable
|
(2,108
|
)
|
|
201
|
|
||
Accounts payable to related companies
|
12
|
|
|
(109
|
)
|
||
Accrued and other current liabilities
|
(122
|
)
|
|
(21
|
)
|
||
Other non-current liabilities
|
42
|
|
|
(87
|
)
|
||
Derivative assets and liabilities, net
|
190
|
|
|
140
|
|
||
Net change in operating assets and liabilities, net of effects of acquisitions
|
$
|
27
|
|
|
$
|
(187
|
)
|
|
Six Months Ended
June 30, |
||||||
|
2020
|
|
2019
|
||||
NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
||||
Accrued capital expenditures
|
$
|
742
|
|
|
$
|
714
|
|
Lease assets obtained in exchange for new lease liabilities
|
125
|
|
|
15
|
|
4.
|
INVENTORIES
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Natural gas, NGLs and refined products
|
$
|
774
|
|
|
$
|
833
|
|
Crude oil
|
367
|
|
|
251
|
|
||
Spare parts and other
|
452
|
|
|
448
|
|
||
Total inventories
|
$
|
1,593
|
|
|
$
|
1,532
|
|
5.
|
FAIR VALUE MEASURES
|
|
|
|
Fair Value Measurements at
June 30, 2020 |
||||||||
|
Fair Value Total
|
|
Level 1
|
|
Level 2
|
||||||
Assets:
|
|
|
|
|
|
||||||
Commodity derivatives:
|
|
|
|
|
|
||||||
Natural Gas:
|
|
|
|
|
|
||||||
Basis Swaps IFERC/NYMEX
|
$
|
112
|
|
|
$
|
112
|
|
|
$
|
—
|
|
Swing Swaps IFERC
|
2
|
|
|
—
|
|
|
2
|
|
|||
Fixed Swaps/Futures
|
93
|
|
|
93
|
|
|
—
|
|
|||
Forward Physical Contracts
|
7
|
|
|
—
|
|
|
7
|
|
|||
Power:
|
|
|
|
|
|
||||||
Forwards
|
21
|
|
|
—
|
|
|
21
|
|
|||
Futures
|
3
|
|
|
3
|
|
|
—
|
|
|||
Options – Puts
|
1
|
|
|
1
|
|
|
—
|
|
|||
Options – Calls
|
1
|
|
|
1
|
|
|
—
|
|
|||
NGLs – Forwards/Swaps
|
208
|
|
|
208
|
|
|
—
|
|
|||
Refined Products – Futures
|
4
|
|
|
4
|
|
|
—
|
|
|||
Crude – Forwards/Swaps
|
3
|
|
|
3
|
|
|
—
|
|
|||
Total commodity derivatives
|
455
|
|
|
425
|
|
|
30
|
|
|||
Other non-current assets
|
29
|
|
|
19
|
|
|
10
|
|
|||
Total assets
|
$
|
484
|
|
|
$
|
444
|
|
|
$
|
40
|
|
Liabilities:
|
|
|
|
|
|
||||||
Interest rate derivatives
|
$
|
(577
|
)
|
|
$
|
—
|
|
|
$
|
(577
|
)
|
Commodity derivatives:
|
|
|
|
|
|
||||||
Natural Gas:
|
|
|
|
|
|
||||||
Basis Swaps IFERC/NYMEX
|
(83
|
)
|
|
(83
|
)
|
|
—
|
|
|||
Swing Swaps IFERC
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
Fixed Swaps/Futures
|
(117
|
)
|
|
(117
|
)
|
|
—
|
|
|||
Forward Physical Contracts
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Power:
|
|
|
|
|
|
||||||
Forwards
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
|||
Futures
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|||
NGLs – Forwards/Swaps
|
(218
|
)
|
|
(218
|
)
|
|
—
|
|
|||
Refined Products – Futures
|
(21
|
)
|
|
(21
|
)
|
|
—
|
|
|||
Crude – Forwards/Swaps
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|||
Total commodity derivatives
|
(466
|
)
|
|
(443
|
)
|
|
(23
|
)
|
|||
Total liabilities
|
$
|
(1,043
|
)
|
|
$
|
(443
|
)
|
|
$
|
(600
|
)
|
|
|
|
Fair Value Measurements at
December 31, 2019 |
||||||||
|
Fair Value Total
|
|
Level 1
|
|
Level 2
|
||||||
Assets:
|
|
|
|
|
|
||||||
Commodity derivatives:
|
|
|
|
|
|
||||||
Natural Gas:
|
|
|
|
|
|
||||||
Basis Swaps IFERC/NYMEX
|
$
|
17
|
|
|
$
|
17
|
|
|
$
|
—
|
|
Swing Swaps IFERC
|
1
|
|
|
—
|
|
|
1
|
|
|||
Fixed Swaps/Futures
|
65
|
|
|
65
|
|
|
—
|
|
|||
Forward Physical Contracts
|
3
|
|
|
—
|
|
|
3
|
|
|||
Power:
|
|
|
|
|
|
|
|||||
Forwards
|
11
|
|
|
—
|
|
|
11
|
|
|||
Futures
|
4
|
|
|
4
|
|
|
—
|
|
|||
Options – Puts
|
1
|
|
|
1
|
|
|
—
|
|
|||
Options – Calls
|
1
|
|
|
1
|
|
|
—
|
|
|||
NGLs – Forwards/Swaps
|
260
|
|
|
260
|
|
|
—
|
|
|||
Refined Products – Futures
|
8
|
|
|
8
|
|
|
—
|
|
|||
Crude – Forwards/Swaps
|
13
|
|
|
13
|
|
|
—
|
|
|||
Total commodity derivatives
|
384
|
|
|
369
|
|
|
15
|
|
|||
Other non-current assets
|
31
|
|
|
20
|
|
|
11
|
|
|||
Total assets
|
$
|
415
|
|
|
$
|
389
|
|
|
$
|
26
|
|
Liabilities:
|
|
|
|
|
|
||||||
Interest rate derivatives
|
$
|
(399
|
)
|
|
$
|
—
|
|
|
$
|
(399
|
)
|
Commodity derivatives:
|
|
|
|
|
|
||||||
Natural Gas:
|
|
|
|
|
|
||||||
Basis Swaps IFERC/NYMEX
|
(49
|
)
|
|
(49
|
)
|
|
—
|
|
|||
Swing Swaps IFERC
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Fixed Swaps/Futures
|
(43
|
)
|
|
(43
|
)
|
|
—
|
|
|||
Power:
|
|
|
|
|
|
|
|||||
Forwards
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
Futures
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|||
NGLs – Forwards/Swaps
|
(278
|
)
|
|
(278
|
)
|
|
—
|
|
|||
Refined Products – Futures
|
(10
|
)
|
|
(10
|
)
|
|
—
|
|
|||
Total commodity derivatives
|
(389
|
)
|
|
(383
|
)
|
|
(6
|
)
|
|||
Total liabilities
|
$
|
(788
|
)
|
|
$
|
(383
|
)
|
|
$
|
(405
|
)
|
6.
|
DEBT OBLIGATIONS
|
7.
|
REDEEMABLE NONCONTROLLING INTERESTS
|
8.
|
EQUITY
|
|
Preferred Unitholders
|
|
|
||||||||||||||||||||||||||||
|
Series A
|
|
Series B
|
|
Series C
|
|
Series D
|
|
Series E
|
|
Series F
|
|
Series G
|
|
Total
|
||||||||||||||||
Balance, December 31, 2019
|
$
|
958
|
|
|
$
|
556
|
|
|
$
|
440
|
|
|
$
|
434
|
|
|
$
|
786
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,174
|
|
Distributions to partners
|
(30
|
)
|
|
(18
|
)
|
|
(8
|
)
|
|
(9
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
(80
|
)
|
||||||||
Units issued for cash
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
494
|
|
|
1,086
|
|
|
1,580
|
|
||||||||
Other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(3
|
)
|
||||||||
Net income
|
15
|
|
|
9
|
|
|
8
|
|
|
9
|
|
|
15
|
|
|
6
|
|
|
15
|
|
|
77
|
|
||||||||
Balance, March 31, 2020
|
943
|
|
|
547
|
|
|
440
|
|
|
434
|
|
|
786
|
|
|
499
|
|
|
1,099
|
|
|
4,748
|
|
||||||||
Distributions to partners
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
|
(15
|
)
|
|
(11
|
)
|
|
(25
|
)
|
|
(67
|
)
|
||||||||
Other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Net income
|
15
|
|
|
9
|
|
|
8
|
|
|
8
|
|
|
15
|
|
|
9
|
|
|
20
|
|
|
84
|
|
||||||||
Balance, June 30, 2020
|
$
|
958
|
|
|
$
|
556
|
|
|
$
|
440
|
|
|
$
|
434
|
|
|
$
|
786
|
|
|
$
|
496
|
|
|
$
|
1,094
|
|
|
$
|
4,764
|
|
|
Preferred Unitholders
|
|
|
||||||||||||||||||||
|
Series A
|
|
Series B
|
|
Series C
|
|
Series D
|
|
Series E
|
|
Total
|
||||||||||||
Balance, December 31, 2018
|
$
|
958
|
|
|
$
|
556
|
|
|
$
|
440
|
|
|
$
|
434
|
|
|
$
|
—
|
|
|
$
|
2,388
|
|
Distributions to partners
|
(30
|
)
|
|
(18
|
)
|
|
(8
|
)
|
|
(8
|
)
|
|
—
|
|
|
(64
|
)
|
||||||
Net income
|
15
|
|
|
9
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
40
|
|
||||||
Balance, March 31, 2019
|
943
|
|
|
547
|
|
|
440
|
|
|
434
|
|
|
—
|
|
|
2,364
|
|
||||||
Distributions to partners
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
|
—
|
|
|
(18
|
)
|
||||||
Units issued for cash
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
780
|
|
|
780
|
|
||||||
Other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Net income
|
15
|
|
|
9
|
|
|
9
|
|
|
9
|
|
|
11
|
|
|
53
|
|
||||||
Balance, June 30, 2019
|
$
|
958
|
|
|
$
|
556
|
|
|
$
|
440
|
|
|
$
|
434
|
|
|
$
|
790
|
|
|
$
|
3,178
|
|
Period Ended
|
|
Record Date
|
|
Payment Date
|
|
Series A (1)
|
|
Series B (1)
|
|
Series C
|
|
Series D
|
|
Series E
|
|
Series F (2)
|
|
Series G (2)
|
|||||||||||||
December 31, 2019
|
|
February 3, 2020
|
|
February 18, 2020
|
|
$
|
31.25
|
|
|
$
|
33.125
|
|
|
$
|
0.4609
|
|
|
$
|
0.4766
|
|
|
0.4750
|
|
|
$
|
—
|
|
|
$
|
—
|
|
March 31, 2020
|
|
May 1, 2020
|
|
May 15, 2020
|
|
—
|
|
|
—
|
|
|
0.4609
|
|
|
0.4766
|
|
|
0.4750
|
|
|
21.19
|
|
|
22.36
|
|
||||||
June 30, 2020
|
|
August 3, 2020
|
|
August 17, 2020
|
|
31.25
|
|
|
33.125
|
|
|
0.4609
|
|
|
0.4766
|
|
|
0.4750
|
|
|
—
|
|
|
—
|
|
(2)
|
Series F Preferred Unit and Series G Preferred Unit distributions related to the period ended March 31, 2020 represent a prorated initial distribution. Distributions are paid on a semi-annual basis.
|
Quarter Ended
|
|
Record Date
|
|
Payment Date
|
|
Rate
|
||
December 31, 2019
|
|
February 7, 2020
|
|
February 19, 2020
|
|
$
|
0.8255
|
|
March 31, 2020
|
|
May 7, 2020
|
|
May 19, 2020
|
|
0.8255
|
|
|
June 30, 2020
|
|
August 7, 2020
|
|
August 19, 2020
|
|
0.8255
|
|
Quarter Ended
|
|
Record Date
|
|
Payment Date
|
|
Rate
|
||
December 31, 2019
|
|
January 27, 2020
|
|
February 7, 2020
|
|
$
|
0.5250
|
|
March 31, 2020
|
|
April 27, 2020
|
|
May 8, 2020
|
|
0.5250
|
|
|
June 30, 2020
|
|
July 31, 2020
|
|
August 10, 2020
|
|
0.5250
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Available-for-sale securities
|
$
|
13
|
|
|
$
|
13
|
|
Foreign currency translation adjustment
|
(32
|
)
|
|
(5
|
)
|
||
Actuarial loss related to pensions and other postretirement benefits
|
(14
|
)
|
|
(25
|
)
|
||
Investments in unconsolidated affiliates, net
|
(17
|
)
|
|
(1
|
)
|
||
Subtotal
|
(50
|
)
|
|
(18
|
)
|
||
Amounts attributable to noncontrolling interest
|
29
|
|
|
—
|
|
||
Total AOCI, net of tax
|
$
|
(21
|
)
|
|
$
|
(18
|
)
|
9.
|
INCOME TAXES
|
10.
|
REGULATORY MATTERS, COMMITMENTS, CONTINGENCIES AND ENVIRONMENTAL LIABILITIES
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
ROW expense
|
$
|
10
|
|
|
$
|
6
|
|
|
$
|
19
|
|
|
$
|
12
|
|
•
|
Certain of our interstate pipelines conduct soil and groundwater remediation related to contamination from past uses of polychlorinated biphenyls (“PCBs”). PCB assessments are ongoing and, in some cases, our subsidiaries could be contractually responsible for contamination caused by other parties.
|
•
|
Certain gathering and processing systems are responsible for soil and groundwater remediation related to releases of hydrocarbons.
|
•
|
Legacy sites related to Sunoco that are subject to environmental assessments, including formerly owned terminals and other logistics assets, retail sites that Sunoco no longer operates, closed and/or sold refineries and other formerly owned sites.
|
•
|
Sunoco is potentially subject to joint and several liability for the costs of remediation at sites at which it has been identified as a potentially responsible party (“PRP”). As of June 30, 2020, Sunoco had been named as a PRP at approximately 30 identified or potentially identifiable “Superfund” sites under federal and/or comparable state law. Sunoco is usually one of a number of companies identified as a PRP at a site. Sunoco has reviewed the nature and extent of its involvement at each site and other relevant circumstances and, based upon Sunoco’s purported nexus to the sites, believes that its potential liability associated with such sites will not be significant.
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Current
|
$
|
43
|
|
|
$
|
46
|
|
Non-current
|
261
|
|
|
274
|
|
||
Total environmental liabilities
|
$
|
304
|
|
|
$
|
320
|
|
11.
|
REVENUE
|
|
Contract Liabilities
|
||
Balance, December 31, 2019
|
$
|
377
|
|
Additions
|
413
|
|
|
Revenue recognized
|
(405
|
)
|
|
Balance, June 30, 2020
|
$
|
385
|
|
|
|
||
Balance, December 31, 2018
|
$
|
394
|
|
Additions
|
300
|
|
|
Revenue recognized
|
(315
|
)
|
|
Balance, June 30, 2019
|
$
|
379
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Contract asset balances:
|
|
|
|
||||
Contract assets
|
$
|
128
|
|
|
$
|
117
|
|
Accounts receivable from contracts with customers
|
263
|
|
|
366
|
|
12.
|
DERIVATIVE ASSETS AND LIABILITIES
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||
|
Notional Volume
|
|
Maturity
|
|
Notional Volume
|
|
Maturity
|
||
Mark-to-Market Derivatives
|
|
|
|
|
|
|
|
||
(Trading)
|
|
|
|
|
|
|
|
||
Natural Gas (BBtu):
|
|
|
|
|
|
|
|
||
Basis Swaps IFERC/NYMEX (1)
|
(20,433
|
)
|
|
2020-2024
|
|
(35,208
|
)
|
|
2020-2024
|
Fixed Swaps/Futures
|
373
|
|
|
2020-2021
|
|
1,483
|
|
|
2020
|
Power (Megawatt):
|
|
|
|
|
|
|
|
||
Forwards
|
1,338,776
|
|
|
2020-2029
|
|
3,213,450
|
|
|
2020-2029
|
Futures
|
204,090
|
|
|
2020-2021
|
|
(353,527
|
)
|
|
2020
|
Options – Puts
|
(340,743
|
)
|
|
2020
|
|
51,615
|
|
|
2020
|
Options – Calls
|
(1,268,532
|
)
|
|
2020-2021
|
|
(2,704,330
|
)
|
|
2020-2021
|
(Non-Trading)
|
|
|
|
|
|
|
|
||
Natural Gas (BBtu):
|
|
|
|
|
|
|
|
||
Basis Swaps IFERC/NYMEX
|
(27,713
|
)
|
|
2020-2022
|
|
(18,923
|
)
|
|
2020-2022
|
Swing Swaps IFERC
|
(35,590
|
)
|
|
2020-2021
|
|
(9,265
|
)
|
|
2020
|
Fixed Swaps/Futures
|
(10,708
|
)
|
|
2020-2022
|
|
(3,085
|
)
|
|
2020-2021
|
Forward Physical Contracts
|
(23,980
|
)
|
|
2020-2021
|
|
(13,364
|
)
|
|
2020-2021
|
NGLs (MBbls) – Forwards/Swaps
|
(8,830
|
)
|
|
2020
|
|
(1,300
|
)
|
|
2020-2021
|
Refined Products (MBbls) – Futures
|
(3,370
|
)
|
|
2020-2022
|
|
(2,473
|
)
|
|
2020-2021
|
Crude (MBbls) – Forwards/Swaps
|
3,393
|
|
|
2020
|
|
4,465
|
|
|
2020
|
Corn (thousand bushels)
|
—
|
|
|
—
|
|
(1,210
|
)
|
|
2020
|
Fair Value Hedging Derivatives
|
|
|
|
|
|
|
|
||
(Non-Trading)
|
|
|
|
|
|
|
|
||
Natural Gas (BBtu):
|
|
|
|
|
|
|
|
||
Basis Swaps IFERC/NYMEX
|
(43,235
|
)
|
|
2020-2021
|
|
(31,780
|
)
|
|
2020
|
Fixed Swaps/Futures
|
(43,235
|
)
|
|
2020-2021
|
|
(31,780
|
)
|
|
2020
|
Hedged Item – Inventory
|
43,235
|
|
|
2020-2021
|
|
31,780
|
|
|
2020
|
(1)
|
Includes aggregate amounts for open positions related to Houston Ship Channel, Waha Hub, NGPL TexOk, West Louisiana Zone and Henry Hub locations.
|
Term
|
|
Type(1)
|
|
Notional Amount Outstanding
|
||||||
June 30,
2020 |
|
December 31,
2019 |
||||||||
July 2020(2)(3)
|
|
Forward-starting to pay a fixed rate of 3.52% and receive a floating rate
|
|
$
|
—
|
|
|
$
|
400
|
|
July 2021(2)
|
|
Forward-starting to pay a fixed rate of 3.55% and receive a floating rate
|
|
400
|
|
|
400
|
|
||
July 2022(2)
|
|
Forward-starting to pay a fixed rate of 3.80% and receive a floating rate
|
|
400
|
|
|
400
|
|
(1)
|
Floating rates are based on 3-month LIBOR.
|
(2)
|
Represents the effective date. These forward-starting swaps have terms of 30 years with a mandatory termination date the same as the effective date.
|
(3)
|
The July 2020 interest rate swaps were terminated in January 2020.
|
|
|
Fair Value of Derivative Instruments
|
||||||||||||||
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
|
|
June 30,
2020 |
|
December 31,
2019 |
|
June 30,
2020 |
|
December 31,
2019 |
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives (margin deposits)
|
|
$
|
18
|
|
|
$
|
24
|
|
|
$
|
(22
|
)
|
|
$
|
—
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives (margin deposits)
|
|
370
|
|
|
319
|
|
|
(367
|
)
|
|
(350
|
)
|
||||
Commodity derivatives
|
|
67
|
|
|
41
|
|
|
(77
|
)
|
|
(39
|
)
|
||||
Interest rate derivatives
|
|
—
|
|
|
—
|
|
|
(577
|
)
|
|
(399
|
)
|
||||
|
|
437
|
|
|
360
|
|
|
(1,021
|
)
|
|
(788
|
)
|
||||
Total derivatives
|
|
$
|
455
|
|
|
$
|
384
|
|
|
$
|
(1,043
|
)
|
|
$
|
(788
|
)
|
|
Location
|
|
Amount of Gain (Loss) on Derivatives
|
||||||||||||||
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives – Trading
|
Cost of products sold
|
|
$
|
(5
|
)
|
|
$
|
(20
|
)
|
|
$
|
11
|
|
|
$
|
(14
|
)
|
Commodity derivatives – Non-trading
|
Cost of products sold
|
|
(96
|
)
|
|
(29
|
)
|
|
97
|
|
|
(41
|
)
|
||||
Interest rate derivatives
|
Losses on interest rate derivatives
|
|
(3
|
)
|
|
(122
|
)
|
|
(332
|
)
|
|
(196
|
)
|
||||
Total
|
|
|
$
|
(104
|
)
|
|
$
|
(171
|
)
|
|
$
|
(224
|
)
|
|
$
|
(251
|
)
|
13.
|
RELATED PARTY TRANSACTIONS
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues from related companies
|
$
|
142
|
|
|
$
|
136
|
|
|
$
|
275
|
|
|
$
|
245
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Accounts receivable from related companies:
|
|
|
|
||||
ET
|
$
|
—
|
|
|
$
|
8
|
|
FGT
|
13
|
|
|
50
|
|
||
Phillips 66
|
9
|
|
|
36
|
|
||
Traverse
|
62
|
|
|
42
|
|
||
Other
|
55
|
|
|
31
|
|
||
Total accounts receivable from related companies
|
$
|
139
|
|
|
$
|
167
|
|
|
|
|
|
||||
Accounts payable to related companies:
|
|
|
|
||||
ET
|
$
|
21
|
|
|
$
|
—
|
|
Other
|
15
|
|
|
31
|
|
||
Total accounts payable to related companies
|
$
|
36
|
|
|
$
|
31
|
|
14.
|
REPORTABLE SEGMENTS
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Intrastate transportation and storage:
|
|
|
|
|
|
|
|
||||||||
Revenues from external customers
|
$
|
465
|
|
|
$
|
671
|
|
|
$
|
1,001
|
|
|
$
|
1,440
|
|
Intersegment revenues
|
51
|
|
|
94
|
|
|
108
|
|
|
181
|
|
||||
|
516
|
|
|
765
|
|
|
1,109
|
|
|
1,621
|
|
||||
Interstate transportation and storage:
|
|
|
|
|
|
|
|
||||||||
Revenues from external customers
|
440
|
|
|
487
|
|
|
899
|
|
|
979
|
|
||||
Intersegment revenues
|
5
|
|
|
6
|
|
|
10
|
|
|
12
|
|
||||
|
445
|
|
|
493
|
|
|
909
|
|
|
991
|
|
||||
Midstream:
|
|
|
|
|
|
|
|
||||||||
Revenues from external customers
|
391
|
|
|
337
|
|
|
892
|
|
|
1,000
|
|
||||
Intersegment revenues
|
627
|
|
|
861
|
|
|
1,296
|
|
|
1,916
|
|
||||
|
1,018
|
|
|
1,198
|
|
|
2,188
|
|
|
2,916
|
|
||||
NGL and refined products transportation and services:
|
|
|
|
|
|
|
|
||||||||
Revenues from external customers
|
1,666
|
|
|
2,356
|
|
|
3,784
|
|
|
5,069
|
|
||||
Intersegment revenues
|
453
|
|
|
256
|
|
|
1,050
|
|
|
574
|
|
||||
|
2,119
|
|
|
2,612
|
|
|
4,834
|
|
|
5,643
|
|
||||
Crude oil transportation and services:
|
|
|
|
|
|
|
|
||||||||
Revenues from external customers
|
1,811
|
|
|
5,012
|
|
|
6,024
|
|
|
9,179
|
|
||||
Intersegment revenues
|
28
|
|
|
34
|
|
|
28
|
|
|
53
|
|
||||
|
1,839
|
|
|
5,046
|
|
|
6,052
|
|
|
9,232
|
|
||||
Investment in Sunoco LP:
|
|
|
|
|
|
|
|
||||||||
Revenues from external customers
|
2,043
|
|
|
4,474
|
|
|
5,303
|
|
|
8,166
|
|
||||
Intersegment revenues
|
37
|
|
|
1
|
|
|
49
|
|
|
1
|
|
||||
|
2,080
|
|
|
4,475
|
|
|
5,352
|
|
|
8,167
|
|
||||
Investment in USAC:
|
|
|
|
|
|
|
|
||||||||
Revenues from external customers
|
166
|
|
|
169
|
|
|
342
|
|
|
336
|
|
||||
Intersegment revenues
|
3
|
|
|
5
|
|
|
6
|
|
|
9
|
|
||||
|
169
|
|
|
174
|
|
|
348
|
|
|
345
|
|
||||
All other:
|
|
|
|
|
|
|
|
||||||||
Revenues from external customers
|
356
|
|
|
371
|
|
|
720
|
|
|
829
|
|
||||
Intersegment revenues
|
136
|
|
|
20
|
|
|
285
|
|
|
59
|
|
||||
|
492
|
|
|
391
|
|
|
1,005
|
|
|
888
|
|
||||
Eliminations
|
(1,340
|
)
|
|
(1,277
|
)
|
|
(2,832
|
)
|
|
(2,805
|
)
|
||||
Total revenues
|
$
|
7,338
|
|
|
$
|
13,877
|
|
|
$
|
18,965
|
|
|
$
|
26,998
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019*
|
|
2020
|
|
2019*
|
||||||||
Segment Adjusted EBITDA:
|
|
|
|
|
|
|
|
||||||||
Intrastate transportation and storage
|
$
|
187
|
|
|
$
|
290
|
|
|
$
|
427
|
|
|
$
|
542
|
|
Interstate transportation and storage
|
403
|
|
|
460
|
|
|
807
|
|
|
916
|
|
||||
Midstream
|
367
|
|
|
412
|
|
|
750
|
|
|
794
|
|
||||
NGL and refined products transportation and services
|
674
|
|
|
644
|
|
|
1,337
|
|
|
1,256
|
|
||||
Crude oil transportation and services
|
519
|
|
|
752
|
|
|
1,110
|
|
|
1,496
|
|
||||
Investment in Sunoco LP
|
182
|
|
|
152
|
|
|
391
|
|
|
305
|
|
||||
Investment in USAC
|
105
|
|
|
105
|
|
|
211
|
|
|
206
|
|
||||
All other
|
4
|
|
|
13
|
|
|
46
|
|
|
46
|
|
||||
Total
|
2,441
|
|
|
2,828
|
|
|
5,079
|
|
|
5,561
|
|
||||
Depreciation, depletion and amortization
|
(934
|
)
|
|
(781
|
)
|
|
(1,799
|
)
|
|
(1,552
|
)
|
||||
Interest expense, net of interest capitalized
|
(578
|
)
|
|
(578
|
)
|
|
(1,178
|
)
|
|
(1,105
|
)
|
||||
Impairment losses
|
(4
|
)
|
|
—
|
|
|
(1,329
|
)
|
|
(50
|
)
|
||||
Losses on interest rate derivatives
|
(3
|
)
|
|
(122
|
)
|
|
(332
|
)
|
|
(196
|
)
|
||||
Non-cash compensation expense
|
(41
|
)
|
|
(29
|
)
|
|
(63
|
)
|
|
(58
|
)
|
||||
Unrealized gains (losses) on commodity risk management activities
|
(48
|
)
|
|
(23
|
)
|
|
3
|
|
|
26
|
|
||||
Losses on extinguishments of debt
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
(2
|
)
|
||||
Inventory valuation adjustments (Sunoco LP)
|
90
|
|
|
4
|
|
|
(137
|
)
|
|
97
|
|
||||
Adjusted EBITDA related to unconsolidated affiliates
|
(157
|
)
|
|
(163
|
)
|
|
(311
|
)
|
|
(309
|
)
|
||||
Equity in earnings of unconsolidated affiliates
|
85
|
|
|
77
|
|
|
78
|
|
|
142
|
|
||||
Other, net
|
(34
|
)
|
|
104
|
|
|
(20
|
)
|
|
108
|
|
||||
Income (loss) before income tax expense
|
817
|
|
|
1,317
|
|
|
(68
|
)
|
|
2,662
|
|
||||
Income tax expense
|
(98
|
)
|
|
(35
|
)
|
|
(127
|
)
|
|
(161
|
)
|
||||
Net income (loss)
|
$
|
719
|
|
|
$
|
1,282
|
|
|
$
|
(195
|
)
|
|
$
|
2,501
|
|
|
June 30,
2020 |
|
December 31, 2019*
|
||||
Segment assets:
|
|
|
|
||||
Intrastate transportation and storage
|
$
|
6,972
|
|
|
$
|
6,648
|
|
Interstate transportation and storage
|
17,413
|
|
|
18,111
|
|
||
Midstream
|
19,132
|
|
|
20,332
|
|
||
NGL and refined products transportation and services
|
21,803
|
|
|
19,145
|
|
||
Crude oil transportation and services
|
21,481
|
|
|
22,933
|
|
||
Investment in Sunoco LP
|
4,985
|
|
|
5,438
|
|
||
Investment in USAC
|
3,058
|
|
|
3,730
|
|
||
All other
|
3,640
|
|
|
5,959
|
|
||
Total segment assets
|
$
|
98,484
|
|
|
$
|
102,296
|
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019*
|
|
Change
|
|
2020
|
|
2019*
|
|
Change
|
||||||||||||
Segment Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Intrastate transportation and storage
|
$
|
187
|
|
|
$
|
290
|
|
|
$
|
(103
|
)
|
|
$
|
427
|
|
|
$
|
542
|
|
|
$
|
(115
|
)
|
Interstate transportation and storage
|
403
|
|
|
460
|
|
|
(57
|
)
|
|
807
|
|
|
916
|
|
|
(109
|
)
|
||||||
Midstream
|
367
|
|
|
412
|
|
|
(45
|
)
|
|
750
|
|
|
794
|
|
|
(44
|
)
|
||||||
NGL and refined products transportation and services
|
674
|
|
|
644
|
|
|
30
|
|
|
1,337
|
|
|
1,256
|
|
|
81
|
|
||||||
Crude oil transportation and services
|
519
|
|
|
752
|
|
|
(233
|
)
|
|
1,110
|
|
|
1,496
|
|
|
(386
|
)
|
||||||
Investment in Sunoco LP
|
182
|
|
|
152
|
|
|
30
|
|
|
391
|
|
|
305
|
|
|
86
|
|
||||||
Investment in USAC
|
105
|
|
|
105
|
|
|
—
|
|
|
211
|
|
|
206
|
|
|
5
|
|
||||||
All other
|
4
|
|
|
13
|
|
|
(9
|
)
|
|
46
|
|
|
46
|
|
|
—
|
|
||||||
Adjusted EBITDA (consolidated)
|
2,441
|
|
|
2,828
|
|
|
(387
|
)
|
|
5,079
|
|
|
5,561
|
|
|
(482
|
)
|
||||||
Depreciation, depletion and amortization
|
(934
|
)
|
|
(781
|
)
|
|
(153
|
)
|
|
(1,799
|
)
|
|
(1,552
|
)
|
|
(247
|
)
|
||||||
Interest expense, net of interest capitalized
|
(578
|
)
|
|
(578
|
)
|
|
—
|
|
|
(1,178
|
)
|
|
(1,105
|
)
|
|
(73
|
)
|
||||||
Impairment losses
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|
(1,329
|
)
|
|
(50
|
)
|
|
(1,279
|
)
|
||||||
Losses on interest rate derivatives
|
(3
|
)
|
|
(122
|
)
|
|
119
|
|
|
(332
|
)
|
|
(196
|
)
|
|
(136
|
)
|
||||||
Non-cash compensation expense
|
(41
|
)
|
|
(29
|
)
|
|
(12
|
)
|
|
(63
|
)
|
|
(58
|
)
|
|
(5
|
)
|
||||||
Unrealized gains (losses) on commodity risk management activities
|
(48
|
)
|
|
(23
|
)
|
|
(25
|
)
|
|
3
|
|
|
26
|
|
|
(23
|
)
|
||||||
Losses on extinguishments of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
(2
|
)
|
|
(57
|
)
|
||||||
Inventory valuation adjustments (Sunoco LP)
|
90
|
|
|
4
|
|
|
86
|
|
|
(137
|
)
|
|
97
|
|
|
(234
|
)
|
||||||
Adjusted EBITDA related to unconsolidated affiliates
|
(157
|
)
|
|
(163
|
)
|
|
6
|
|
|
(311
|
)
|
|
(309
|
)
|
|
(2
|
)
|
||||||
Equity in earnings of unconsolidated affiliates
|
85
|
|
|
77
|
|
|
8
|
|
|
78
|
|
|
142
|
|
|
(64
|
)
|
||||||
Other, net
|
(34
|
)
|
|
104
|
|
|
(138
|
)
|
|
(20
|
)
|
|
108
|
|
|
(128
|
)
|
||||||
Income (loss) before income tax expense
|
817
|
|
|
1,317
|
|
|
(500
|
)
|
|
(68
|
)
|
|
2,662
|
|
|
(2,730
|
)
|
||||||
Income tax expense
|
(98
|
)
|
|
(35
|
)
|
|
(63
|
)
|
|
(127
|
)
|
|
(161
|
)
|
|
34
|
|
||||||
Net income (loss)
|
$
|
719
|
|
|
$
|
1,282
|
|
|
$
|
(563
|
)
|
|
$
|
(195
|
)
|
|
$
|
2,501
|
|
|
$
|
(2,696
|
)
|
•
|
an increase of $67 million recognized by the Partnership primarily attributable to higher debt balances following the March 2019 ET-ETO notes exchange and the December 2019 SemGroup acquisition, partially offset by lower borrowing costs on both recently refinanced debt and floating rate debt and higher capitalized interest;
|
•
|
an increase of $3 million for USAC for the six months ended June 30, 2020 compared to the six months ended June 30, 2019 was primarily attributable to a full six months of interest expense incurred in the current period on its senior notes issued in March 2019, which were used to reduce borrowings under the credit agreement, partially offset by reduced borrowings and lower weighted average interest rates under the credit agreement; and
|
•
|
an increase of $3 million for Sunoco LP for the six months ended June 30, 2020 compared to the same period last year primarily related to an increase in Sunoco LP’s total long-term debt.
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
Equity in earnings (losses) of unconsolidated affiliates:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Citrus
|
$
|
42
|
|
|
$
|
39
|
|
|
$
|
3
|
|
|
$
|
77
|
|
|
$
|
71
|
|
|
$
|
6
|
|
FEP
|
18
|
|
|
14
|
|
|
4
|
|
|
(52
|
)
|
|
28
|
|
|
(80
|
)
|
||||||
MEP
|
(2
|
)
|
|
7
|
|
|
(9
|
)
|
|
(2
|
)
|
|
14
|
|
|
(16
|
)
|
||||||
White Cliffs
|
9
|
|
|
—
|
|
|
9
|
|
|
17
|
|
|
—
|
|
|
17
|
|
||||||
Other
|
18
|
|
|
17
|
|
|
1
|
|
|
38
|
|
|
29
|
|
|
9
|
|
||||||
Total equity in earnings (losses) of unconsolidated affiliates
|
$
|
85
|
|
|
$
|
77
|
|
|
$
|
8
|
|
|
$
|
78
|
|
|
$
|
142
|
|
|
$
|
(64
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted EBITDA related to unconsolidated affiliates(1):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Citrus
|
$
|
89
|
|
|
$
|
87
|
|
|
$
|
2
|
|
|
$
|
168
|
|
|
$
|
168
|
|
|
$
|
—
|
|
FEP
|
19
|
|
|
18
|
|
|
1
|
|
|
38
|
|
|
37
|
|
|
1
|
|
||||||
MEP
|
7
|
|
|
20
|
|
|
(13
|
)
|
|
15
|
|
|
39
|
|
|
(24
|
)
|
||||||
White Cliffs
|
13
|
|
|
—
|
|
|
13
|
|
|
27
|
|
|
—
|
|
|
27
|
|
||||||
Other
|
29
|
|
|
38
|
|
|
(9
|
)
|
|
63
|
|
|
65
|
|
|
(2
|
)
|
||||||
Total Adjusted EBITDA related to unconsolidated affiliates
|
$
|
157
|
|
|
$
|
163
|
|
|
$
|
(6
|
)
|
|
$
|
311
|
|
|
$
|
309
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Distributions received from unconsolidated affiliates:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Citrus
|
$
|
58
|
|
|
$
|
39
|
|
|
$
|
19
|
|
|
$
|
107
|
|
|
$
|
74
|
|
|
$
|
33
|
|
FEP
|
17
|
|
|
16
|
|
|
1
|
|
|
35
|
|
|
33
|
|
|
2
|
|
||||||
MEP
|
7
|
|
|
15
|
|
|
(8
|
)
|
|
18
|
|
|
26
|
|
|
(8
|
)
|
||||||
White Cliffs
|
10
|
|
|
—
|
|
|
10
|
|
|
23
|
|
|
—
|
|
|
23
|
|
||||||
Other
|
20
|
|
|
42
|
|
|
(22
|
)
|
|
39
|
|
|
58
|
|
|
(19
|
)
|
||||||
Total distributions received from unconsolidated affiliates
|
$
|
112
|
|
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
222
|
|
|
$
|
191
|
|
|
$
|
31
|
|
(1)
|
These amounts represent our proportionate share of the Adjusted EBITDA of our unconsolidated affiliates and are based on our equity in earnings or losses of our unconsolidated affiliates adjusted for our proportionate share of the unconsolidated affiliates’ interest, depreciation, depletion, amortization, non-cash items and taxes.
|
•
|
Segment margin, operating expenses, and selling, general and administrative expenses. These amounts represent the amounts included in our consolidated financial statements that are attributable to each segment.
|
•
|
Unrealized gains or losses on commodity risk management activities and inventory valuation adjustments. These are the unrealized amounts that are included in cost of products sold to calculate segment margin. These amounts are not included in Segment Adjusted EBITDA; therefore, the unrealized losses are added back and the unrealized gains are subtracted to calculate the segment measure.
|
•
|
Non-cash compensation expense. These amounts represent the total non-cash compensation recorded in operating expenses and selling, general and administrative expenses. This expense is not included in Segment Adjusted EBITDA and therefore is added back to calculate the segment measure.
|
•
|
Adjusted EBITDA related to unconsolidated affiliates. Adjusted EBITDA related to unconsolidated affiliates excludes the same items with respect to the unconsolidated affiliate as those excluded from the calculation of Segment Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliates, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliates. We do not control our unconsolidated affiliates; therefore, we do not control the earnings or cash flows of such affiliates.
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
Natural gas transported (BBtu/d)
|
12,921
|
|
|
12,115
|
|
|
806
|
|
|
13,028
|
|
|
12,049
|
|
|
979
|
|
||||||
Withdrawals from storage natural gas inventory (BBtu)
|
(1,910
|
)
|
|
—
|
|
|
(1,910
|
)
|
|
5,065
|
|
|
—
|
|
|
5,065
|
|
||||||
Revenues
|
$
|
516
|
|
|
$
|
765
|
|
|
$
|
(249
|
)
|
|
$
|
1,109
|
|
|
$
|
1,621
|
|
|
$
|
(512
|
)
|
Cost of products sold
|
248
|
|
|
400
|
|
|
(152
|
)
|
|
551
|
|
|
972
|
|
|
(421
|
)
|
||||||
Segment margin
|
268
|
|
|
365
|
|
|
(97
|
)
|
|
558
|
|
|
649
|
|
|
(91
|
)
|
||||||
Unrealized gains on commodity risk management activities
|
(33
|
)
|
|
(26
|
)
|
|
(7
|
)
|
|
(39
|
)
|
|
(16
|
)
|
|
(23
|
)
|
||||||
Operating expenses, excluding non-cash compensation expense
|
(48
|
)
|
|
(47
|
)
|
|
(1
|
)
|
|
(89
|
)
|
|
(89
|
)
|
|
—
|
|
||||||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(6
|
)
|
|
(7
|
)
|
|
1
|
|
|
(15
|
)
|
|
(13
|
)
|
|
(2
|
)
|
||||||
Adjusted EBITDA related to unconsolidated affiliates
|
6
|
|
|
5
|
|
|
1
|
|
|
12
|
|
|
11
|
|
|
1
|
|
||||||
Segment Adjusted EBITDA
|
$
|
187
|
|
|
$
|
290
|
|
|
$
|
(103
|
)
|
|
$
|
427
|
|
|
$
|
542
|
|
|
$
|
(115
|
)
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
Transportation fees
|
$
|
148
|
|
|
$
|
148
|
|
|
$
|
—
|
|
|
$
|
309
|
|
|
$
|
302
|
|
|
$
|
7
|
|
Natural gas sales and other (excluding unrealized gains and losses)
|
68
|
|
|
173
|
|
|
(105
|
)
|
|
156
|
|
|
293
|
|
|
(137
|
)
|
||||||
Retained fuel revenues (excluding unrealized gains and losses)
|
10
|
|
|
12
|
|
|
(2
|
)
|
|
19
|
|
|
23
|
|
|
(4
|
)
|
||||||
Storage margin (excluding unrealized gains and losses)
|
9
|
|
|
6
|
|
|
3
|
|
|
35
|
|
|
15
|
|
|
20
|
|
||||||
Unrealized gains on commodity risk management activities
|
33
|
|
|
26
|
|
|
7
|
|
|
39
|
|
|
16
|
|
|
23
|
|
||||||
Total segment margin
|
$
|
268
|
|
|
$
|
365
|
|
|
$
|
(97
|
)
|
|
$
|
558
|
|
|
$
|
649
|
|
|
$
|
(91
|
)
|
•
|
a decrease of $105 million in realized natural gas sales and other primarily due to lower realized gains from pipeline optimization activity; and
|
•
|
an increase of $1 million in operating expenses primarily due to higher maintenance project costs and higher cost of fuel consumption; partially offset by
|
•
|
an increase of $3 million in realized storage margin primarily due to higher storage optimization and fees.
|
•
|
a decrease of $137 million in realized natural gas sales and other primarily due to lower realized gains from pipeline optimization activity;
|
•
|
a decrease of $4 million in retained fuel revenues primarily due to lower gas prices; and
|
•
|
an increase of $2 million in selling, general and administrative expenses primarily due to higher allocated corporate costs; partially offset by
|
•
|
an increase of $20 million in realized storage margin primarily due to higher storage optimization;
|
•
|
an increase of $7 million in transportation fees primarily due to volume ramp-ups on the Red Bluff Express pipeline and new contracts; and
|
•
|
an increase of $1 million in Adjusted EBITDA related to unconsolidated affiliates primarily due to higher fee revenue on the Trans-Pecos and Comanche Trail pipelines.
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
Natural gas transported (BBtu/d)
|
10,152
|
|
|
10,825
|
|
|
(673
|
)
|
|
10,440
|
|
|
11,177
|
|
|
(737
|
)
|
||||||
Natural gas sold (BBtu/d)
|
17
|
|
|
17
|
|
|
—
|
|
|
16
|
|
|
18
|
|
|
(2
|
)
|
||||||
Revenues
|
$
|
445
|
|
|
$
|
493
|
|
|
$
|
(48
|
)
|
|
$
|
909
|
|
|
$
|
991
|
|
|
$
|
(82
|
)
|
Operating expenses, excluding non-cash compensation, amortization and accretion expenses
|
(139
|
)
|
|
(138
|
)
|
|
(1
|
)
|
|
(282
|
)
|
|
(284
|
)
|
|
2
|
|
||||||
Selling, general and administrative expenses, excluding non-cash compensation, amortization and accretion expenses
|
(16
|
)
|
|
(18
|
)
|
|
2
|
|
|
(37
|
)
|
|
(32
|
)
|
|
(5
|
)
|
||||||
Adjusted EBITDA related to unconsolidated affiliates
|
115
|
|
|
125
|
|
|
(10
|
)
|
|
221
|
|
|
244
|
|
|
(23
|
)
|
||||||
Other
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
(4
|
)
|
|
(3
|
)
|
|
(1
|
)
|
||||||
Segment Adjusted EBITDA
|
$
|
403
|
|
|
$
|
460
|
|
|
$
|
(57
|
)
|
|
$
|
807
|
|
|
$
|
916
|
|
|
$
|
(109
|
)
|
•
|
a decrease of $43 million in reservation fees primarily due to a decrease of $18 million from additional revenue recognized in 2019 associated with a shipper bankruptcy, a decrease of $16 million from lower rates on Lake Charles LNG effective January 2020 and a decrease of $12 million due to less capacity sold on our Panhandle and Trunkline systems as well as lower rates on the sale of uncommitted capacity on our Rover pipeline. These decreases were partially offset by increased margin from our Transwestern system due to increased demand in firm transportation;
|
•
|
a decrease of $4 million in interruptible transportation due to lower rates and lower short-term customer demand on our Sea Robin and Transwestern systems; and
|
•
|
a decrease of $10 million in Adjusted EBITDA related to unconsolidated affiliates primarily due to lower earnings of $12 million from our Midcontinent Express Pipeline joint venture as a result of less capacity sold and lower rates received following the expiration of certain contracts, partially offset by a $2 million increase from Citrus primarily due to higher margins and lower operating expenses.
|
•
|
a decrease of $73 million in reservation fees primarily due to a decrease of $18 million from additional revenue recognized in 2019 associated with a shipper bankruptcy, a decrease of $30 million due to less capacity sold at lower rates on our Panhandle and Trunkline system as well as lower rates on the sale of uncommitted capacity on our Rover pipeline, and a decrease of $32 million due to a contractual rate adjustment on commitments at our Lake Charles LNG facility. These decreases were partially offset by increased revenues from our Transwestern system due to increased demand in firm transportation;
|
•
|
a decrease of $8 million in operational gas sales, interruptible transportation, parking and storage revenue due to unfavorable market conditions;
|
•
|
an increase of $5 million in selling, general and administrative expenses primarily due to higher allocated overhead costs and an increase in reserves for insurance claims; and
|
•
|
a decrease of $23 million in Adjusted EBITDA related to unconsolidated affiliates primarily due to lower earnings from our Midcontinent Express Pipeline joint venture as a result of less capacity sold and lower rates received following the expiration of certain contracts; partially offset by
|
•
|
a decrease of $2 million in operating expenses primarily due to lower employee costs resulting from cost-cutting initiatives of $10 million and an $8 million decrease in ad valorem taxes, partially offset by bad debt expense of $10 million and a $5 million change in lower of cost or market adjustments.
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
Gathered volumes (BBtu/d)
|
12,964
|
|
|
13,148
|
|
|
(184
|
)
|
|
13,155
|
|
|
12,934
|
|
|
221
|
|
||||||
NGLs produced (MBbls/d)
|
602
|
|
|
565
|
|
|
37
|
|
|
606
|
|
|
564
|
|
|
42
|
|
||||||
Equity NGLs (MBbls/d)
|
37
|
|
|
30
|
|
|
7
|
|
|
37
|
|
|
33
|
|
|
4
|
|
||||||
Revenues
|
$
|
1,018
|
|
|
$
|
1,198
|
|
|
$
|
(180
|
)
|
|
$
|
2,188
|
|
|
$
|
2,916
|
|
|
$
|
(728
|
)
|
Cost of products sold
|
473
|
|
|
584
|
|
|
(111
|
)
|
|
1,048
|
|
|
1,725
|
|
|
(677
|
)
|
||||||
Segment margin
|
545
|
|
|
614
|
|
|
(69
|
)
|
|
1,140
|
|
|
1,191
|
|
|
(51
|
)
|
||||||
Operating expenses, excluding non-cash compensation expense
|
(166
|
)
|
|
(189
|
)
|
|
23
|
|
|
(359
|
)
|
|
(372
|
)
|
|
13
|
|
||||||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(20
|
)
|
|
(23
|
)
|
|
3
|
|
|
(46
|
)
|
|
(42
|
)
|
|
(4
|
)
|
||||||
Adjusted EBITDA related to unconsolidated affiliates
|
7
|
|
|
9
|
|
|
(2
|
)
|
|
14
|
|
|
15
|
|
|
(1
|
)
|
||||||
Other
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
(1
|
)
|
||||||
Segment Adjusted EBITDA
|
$
|
367
|
|
|
$
|
412
|
|
|
$
|
(45
|
)
|
|
$
|
750
|
|
|
$
|
794
|
|
|
$
|
(44
|
)
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
Gathering and processing fee-based revenues
|
$
|
503
|
|
|
$
|
530
|
|
|
$
|
(27
|
)
|
|
$
|
1,033
|
|
|
$
|
1,034
|
|
|
$
|
(1
|
)
|
Non-fee-based contracts and processing
|
42
|
|
|
84
|
|
|
(42
|
)
|
|
107
|
|
|
157
|
|
|
(50
|
)
|
||||||
Total segment margin
|
$
|
545
|
|
|
$
|
614
|
|
|
$
|
(69
|
)
|
|
$
|
1,140
|
|
|
$
|
1,191
|
|
|
$
|
(51
|
)
|
•
|
a decrease $39 million in non fee-based margin due to lower NGL prices;
|
•
|
a decrease of $3 million in non-fee based margin due to decreased throughput volume in the South Texas region; and
|
•
|
a decrease of $27 million in fee-based margin due to volume declines in the South Texas and North Texas regions; partially offset by
|
•
|
a decrease of $23 million in operating expenses due to decreases of $11 million in outside services, $8 million in employee costs and $3 million in materials; and
|
•
|
a decrease of $3 million in selling, general and administrative expenses due to a decrease in allocated overhead costs.
|
•
|
a decrease of $61 million in non-fee-based margin due to lower NGL prices of $56 million and lower gas prices of $5 million;
|
•
|
an increase of $4 million in selling, general and administrative expenses due to an increase of $3 million in capitalized overhead costs and an increase of $1 million in insurance; partially offset by
|
•
|
an increase of $11 million in non-fee-based margin due to increased throughput volume in the Mid-Continent/Panhandle region as a result of the SemGroup acquisition; and
|
•
|
a decrease of $13 million in operating expenses due to decreases of $11 million in outside services, $4 million in employee costs and $3 million in materials, partially offset by an increase of $7 million in maintenance project costs.
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
NGL transportation volumes (MBbls/d)
|
1,401
|
|
|
1,305
|
|
|
96
|
|
|
1,400
|
|
|
1,237
|
|
|
163
|
|
||||||
Refined products transportation volumes (MBbls/d)
|
377
|
|
|
628
|
|
|
(251
|
)
|
|
460
|
|
|
623
|
|
|
(163
|
)
|
||||||
NGL and refined products terminal volumes (MBbls/d)
|
748
|
|
|
885
|
|
|
(137
|
)
|
|
798
|
|
|
831
|
|
|
(33
|
)
|
||||||
NGL fractionation volumes (MBbls/d)
|
836
|
|
|
701
|
|
|
135
|
|
|
820
|
|
|
690
|
|
|
130
|
|
||||||
Revenues
|
$
|
2,119
|
|
|
$
|
2,612
|
|
|
$
|
(493
|
)
|
|
$
|
4,834
|
|
|
$
|
5,643
|
|
|
$
|
(809
|
)
|
Cost of products sold
|
1,368
|
|
|
1,848
|
|
|
(480
|
)
|
|
3,204
|
|
|
4,174
|
|
|
(970
|
)
|
||||||
Segment margin
|
751
|
|
|
764
|
|
|
(13
|
)
|
|
1,630
|
|
|
1,469
|
|
|
161
|
|
||||||
Unrealized losses on commodity risk management activities
|
78
|
|
|
39
|
|
|
39
|
|
|
23
|
|
|
96
|
|
|
(73
|
)
|
||||||
Operating expenses, excluding non-cash compensation expense
|
(154
|
)
|
|
(155
|
)
|
|
1
|
|
|
(313
|
)
|
|
(304
|
)
|
|
(9
|
)
|
||||||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(19
|
)
|
|
(26
|
)
|
|
7
|
|
|
(44
|
)
|
|
(45
|
)
|
|
1
|
|
||||||
Adjusted EBITDA related to unconsolidated affiliates
|
18
|
|
|
21
|
|
|
(3
|
)
|
|
41
|
|
|
39
|
|
|
2
|
|
||||||
Other
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
||||||
Segment Adjusted EBITDA
|
$
|
674
|
|
|
$
|
644
|
|
|
$
|
30
|
|
|
$
|
1,337
|
|
|
$
|
1,256
|
|
|
$
|
81
|
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
Transportation margin
|
$
|
449
|
|
|
$
|
422
|
|
|
$
|
27
|
|
|
$
|
925
|
|
|
$
|
785
|
|
|
$
|
140
|
|
Fractionators and refinery services margin
|
173
|
|
|
154
|
|
|
19
|
|
|
352
|
|
|
320
|
|
|
32
|
|
||||||
Terminal services margin
|
129
|
|
|
166
|
|
|
(37
|
)
|
|
280
|
|
|
303
|
|
|
(23
|
)
|
||||||
Storage margin
|
55
|
|
|
53
|
|
|
2
|
|
|
118
|
|
|
109
|
|
|
9
|
|
||||||
Marketing margin
|
23
|
|
|
8
|
|
|
15
|
|
|
(22
|
)
|
|
48
|
|
|
(70
|
)
|
||||||
Unrealized losses on commodity risk management activities
|
(78
|
)
|
|
(39
|
)
|
|
(39
|
)
|
|
(23
|
)
|
|
(96
|
)
|
|
73
|
|
||||||
Total segment margin
|
$
|
751
|
|
|
$
|
764
|
|
|
$
|
(13
|
)
|
|
$
|
1,630
|
|
|
$
|
1,469
|
|
|
$
|
161
|
|
•
|
an increase of $27 million in transportation margin primarily due to a $28 million increase from higher throughput volumes on our Mariner East pipeline system, an $11 million increase from higher throughput volumes received from the Permian region on our Texas NGL pipelines, a $6 million increase due to the initiation of service on our JC Nolan diesel fuel pipeline in the third quarter of 2019, and a $4 million increase due to higher throughput volumes from the Southeast Texas region. These increases were partially offset by an $8 million decrease due to a reclassification between our transportation and fractionators margins, a $7 million decrease due to less domestic demand for jet fuel and other refined products, a $5 million decrease resulting from the closure of a third-party refinery during the third quarter of 2019, and a $2 million decrease due to lower third-party volumes on our Mariner West pipeline;
|
•
|
an increase of $15 million in marketing margin primarily due to a $50 million increase due to higher optimization gains from the sale of NGL component products at our Mont Belvieu facility and a $10 million increase due to write-downs of NGL inventory in the second quarter of 2019. These increases were partially offset by lower gains from our butane blending business during the second quarter of 2020 due to unfavorable market conditions; and
|
•
|
an increase of $19 million in fractionators and refinery services margin primarily due to a $15 million increase resulting from the commissioning of our seventh fractionator in February 2020 and higher NGL volumes from the Permian and Barnett regions feeding our Mont Belvieu fractionation facility, and an increase of $8 million due to a reclassification between our transportation and fractionators margins. These increases were partially offset by a $4 million decrease due to the expiration of a third-party blending contract during the second quarter of 2020; partially offset by
|
•
|
a decrease of $37 million in terminal services margin primarily due to a $25 million decrease resulting from the expiration of a third party contract at our Nederland export facility in the second quarter of 2020, a $9 million decrease due to lower third-party and intercompany volumes feeding our Marcus Hook Industrial Complex, a $6 million decrease due to less domestic demand for jet fuel and other refined products, and a $4 million decrease due to the closure of a third-party refinery. These decreases were partially offset by a $6 million increase due to higher throughput on our Mariner East system.
|
•
|
an increase of $140 million in transportation margin primarily due to a $103 million increase from higher throughput volumes on our Mariner East pipeline system, a $46 million increase resulting from higher throughput volumes received from the Permian region on our Texas NGL pipelines, a $14 million increase due to the initiation of service on our JC Nolan diesel fuel pipeline in the third quarter of 2019, a $9 million increase due to higher throughput volumes from the Barnett region, and a $6 million increase due to higher throughput from the Southeast Texas region. These increases were partially offset by an $11 million decrease resulting from the closure of a third-party refinery during the third quarter of 2019, a $10 million decrease due to less domestic demand for jet fuel and other refined products, an $8 million decrease due to a reclassification between our transportation and fractionators margins, a $5 million decrease due to lower volumes from the Eagle Ford region, and a $3 million decrease due to lower third-party volumes on our Mariner West pipeline;
|
•
|
an increase of $32 million in fractionators and refinery services margin primarily due to a $25 million increase resulting from the commissioning of our sixth and seventh fractionators in February 2019 and February 2020, respectively, and higher NGL volumes from the Permian and Barnett regions feeding our Mont Belvieu fractionation facility, an $8 million increase due to a reclassification between our transportation and fractionators margins, and a $3 million increase in truck and rail volumes feeding our refinery services facility. These increases were partially offset by a $6 million decrease due to the expiration of a third-party blending contract during the second quarter of 2020; and
|
•
|
an increase of $9 million in storage margin primarily due to a $6 million increase in fees generated from exported volumes and a $3 million increase from higher throughput; partially offset by
|
•
|
a decrease of $70 million in marketing margin primarily due to a $54 million decrease due to lower gains from our butane and gasoline blending business due to unfavorable market conditions, a $35 million decrease from capacity lease fees incurred by our marketing affiliate on our Mariner East pipeline system and a $12 million decrease due to fewer export and rack sales. These decreases were partially offset by higher optimization gains from the sale of NGL component products at our Mont Belvieu facility;
|
•
|
a decrease of $23 million in terminal services margin primarily due to a $25 million decrease resulting from the expiration of a third-party contract at our Nederland export facility in the second quarter of 2020, a $16 million decrease due to lower third-party and intercompany volumes feeding our Marcus Hook Industrial Complex, a $10 million decrease due to a closure of a third-party refinery, and an $8 million decrease due to less domestic demand for jet fuel and other refined products. These decreases were partially offset by a $33 million increase due to higher throughput on our Mariner East system and a $3 million increase resulting from initiation of service of our natural gasoline export in the third quarter of 2019; and
|
•
|
an increase of $9 million in operating expenses primarily due to increases totaling $15 million for costs associated with operating additional assets as well as an increase in throughput volumes, partially offset by a $5 million reduction to lower power costs.
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
Crude transportation volumes (MBbls/d)
|
3,590
|
|
|
4,266
|
|
|
(676
|
)
|
|
4,021
|
|
|
4,158
|
|
|
(137
|
)
|
||||||
Crude terminals volumes (MBbls/d)
|
2,716
|
|
|
2,846
|
|
|
(130
|
)
|
|
2,851
|
|
|
2,704
|
|
|
147
|
|
||||||
Revenues
|
$
|
1,839
|
|
|
$
|
5,046
|
|
|
$
|
(3,207
|
)
|
|
$
|
6,052
|
|
|
$
|
9,232
|
|
|
$
|
(3,180
|
)
|
Cost of products sold
|
1,175
|
|
|
4,136
|
|
|
(2,961
|
)
|
|
4,633
|
|
|
7,298
|
|
|
(2,665
|
)
|
||||||
Segment margin
|
664
|
|
|
910
|
|
|
(246
|
)
|
|
1,419
|
|
|
1,934
|
|
|
(515
|
)
|
||||||
Unrealized (gains) losses on commodity risk management activities
|
—
|
|
|
11
|
|
|
(11
|
)
|
|
10
|
|
|
(98
|
)
|
|
108
|
|
||||||
Operating expenses, excluding non-cash compensation expense
|
(131
|
)
|
|
(150
|
)
|
|
19
|
|
|
(289
|
)
|
|
(300
|
)
|
|
11
|
|
||||||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(26
|
)
|
|
(20
|
)
|
|
(6
|
)
|
|
(54
|
)
|
|
(40
|
)
|
|
(14
|
)
|
||||||
Adjusted EBITDA related to unconsolidated affiliates
|
11
|
|
|
1
|
|
|
10
|
|
|
23
|
|
|
(1
|
)
|
|
24
|
|
||||||
Other
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||
Segment Adjusted EBITDA
|
$
|
519
|
|
|
$
|
752
|
|
|
$
|
(233
|
)
|
|
$
|
1,110
|
|
|
$
|
1,496
|
|
|
$
|
(386
|
)
|
•
|
a decrease of $257 million in segment margin (excluding unrealized gains and losses on commodity risk management activities) primarily due to a $62 million decrease (excluding a net change of $11 million in unrealized gains and losses on commodity risk management activities) from our crude oil acquisition and marketing business due to well shut-ins resulting in unfulfilled producer supply commitments, as well as unfavorable pricing conditions impacting our Permian to Gulf Coast and Bakken to Gulf Coast trading operations, a $123 million decrease from our Texas crude pipeline system due to lower utilization due in part to well shut-ins, as well as lower average tariff rates realized, a $117 million decrease due to lower volumes on our Bakken Pipeline resulting from well shut-ins, a $10 million decrease in marine throughput at our crude terminals, and a $7 million decrease due to lower volumes on our Bayou Bridge Pipeline, partially offset by an increase of $74 million related to assets acquired in 2019; and
|
•
|
an increase of $6 million in selling, general and administrative expenses primarily due to a $3 million increase in legal expenses, and a $2 million increase in insurance expenses, partially offset by a $1 million decrease in allocated overhead costs; offset by
|
•
|
a decrease of $19 million in operating expenses primarily due to lower volume-driven pipeline expenses, partially offset by increased costs related to assets acquired in 2019; and
|
•
|
an increase of $10 million in Adjusted EBITDA related to unconsolidated affiliates due to assets acquired in 2019.
|
•
|
a decrease of $407 million in segment margin (excluding unrealized gains and losses on commodity risk management activities) primarily due to a $268 million decrease (excluding a net change of $108 million in unrealized gains and losses on commodity risk management activities) from our crude oil acquisition and marketing business due primarily to unfavorable pricing conditions, as well as unfulfilled producer supply commitments due to well shut-ins, impacting our Permian to Gulf Coast
|
•
|
an increase of $14 million in selling, general and administrative expenses primarily due to a $4 million increase in legal expenses, a $4 million increase related to assets acquired in 2019, a $2 million increase in insurance expenses, and a $2 million increase in allocated overhead costs; partially offset by
|
•
|
a decrease of $11 million in operating expenses primarily due to lower volume-driven pipeline expenses, partially offset by increased costs related to assets acquired in 2019; and
|
•
|
an increase of $24 million in Adjusted EBITDA related to unconsolidated affiliates due to assets acquired in 2019.
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
Revenues
|
$
|
2,080
|
|
|
$
|
4,475
|
|
|
$
|
(2,395
|
)
|
|
$
|
5,352
|
|
|
$
|
8,167
|
|
|
$
|
(2,815
|
)
|
Cost of products sold
|
1,722
|
|
|
4,206
|
|
|
(2,484
|
)
|
|
4,886
|
|
|
7,528
|
|
|
(2,642
|
)
|
||||||
Segment margin
|
358
|
|
|
269
|
|
|
89
|
|
|
466
|
|
|
639
|
|
|
(173
|
)
|
||||||
Unrealized (gains) losses on commodity risk management activities
|
—
|
|
|
3
|
|
|
(3
|
)
|
|
6
|
|
|
(3
|
)
|
|
9
|
|
||||||
Operating expenses, excluding non-cash compensation expense
|
(72
|
)
|
|
(89
|
)
|
|
17
|
|
|
(181
|
)
|
|
(187
|
)
|
|
6
|
|
||||||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(22
|
)
|
|
(31
|
)
|
|
9
|
|
|
(52
|
)
|
|
(55
|
)
|
|
3
|
|
||||||
Adjusted EBITDA related to unconsolidated affiliates
|
3
|
|
|
—
|
|
|
3
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||
Inventory valuation adjustments
|
(90
|
)
|
|
(4
|
)
|
|
(86
|
)
|
|
137
|
|
|
(97
|
)
|
|
234
|
|
||||||
Other
|
5
|
|
|
4
|
|
|
1
|
|
|
10
|
|
|
8
|
|
|
2
|
|
||||||
Segment Adjusted EBITDA
|
$
|
182
|
|
|
$
|
152
|
|
|
$
|
30
|
|
|
$
|
391
|
|
|
$
|
305
|
|
|
$
|
86
|
|
•
|
an increase of $16 million in motor fuel sales as a result of an increase in gross profit per gallon sold, partially offset by a decrease in gallons sold;
|
•
|
a decrease of $26 million in operating expenses and selling, general and administrative expenses, excluding non-cash compensation expense, primarily attributable to lower employee costs, maintenance, advertising, credit card fees and utilities; and
|
•
|
an increase of $3 million in Adjusted EBITDA related to unconsolidated affiliates which was attributable to the JC Nolan joint venture entered into in 2019; partially offset by
|
•
|
a decrease of $15 million in non-motor fuel sales gross margin as a result of reduced credit card transactions related to the COVID-19 pandemic.
|
•
|
an increase of $84 million in motor fuel sales as a result of a 39.6% increase in gross profit per gallon sold and the receipt of a $13 million make-up payment under the fuel supply agreement with 7-Eleven, Inc.; partially offset by a 14.6% decrease in gallons sold;
|
•
|
a decrease of $9 million in operating expenses and selling, general and administrative expenses, excluding non-cash compensation expense, primarily attributable to lower employee costs, maintenance, advertising, credit card fees and utilities. This decrease is primarily offset by a $16 million charge for current credit losses on Sunoco LP’s accounts receivable in connection with the financial impact from COVID-19; and
|
•
|
an increase in unconsolidated affiliate Adjusted EBITDA of $5 million, which was attributable to the JC Nolan joint venture entered into in 2019; partially offset by
|
•
|
a decrease of $13 million in non motor fuel sales primarily due to reduced credit card transactions related to the COVID-19 pandemic.
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
Revenues
|
$
|
169
|
|
|
$
|
174
|
|
|
$
|
(5
|
)
|
|
$
|
348
|
|
|
$
|
345
|
|
|
$
|
3
|
|
Cost of products sold
|
18
|
|
|
24
|
|
|
(6
|
)
|
|
42
|
|
|
46
|
|
|
(4
|
)
|
||||||
Segment margin
|
151
|
|
|
150
|
|
|
1
|
|
|
306
|
|
|
299
|
|
|
7
|
|
||||||
Operating expenses, excluding non-cash compensation expense
|
(30
|
)
|
|
(32
|
)
|
|
2
|
|
|
(65
|
)
|
|
(67
|
)
|
|
2
|
|
||||||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(16
|
)
|
|
(13
|
)
|
|
(3
|
)
|
|
(30
|
)
|
|
(26
|
)
|
|
(4
|
)
|
||||||
Segment Adjusted EBITDA
|
$
|
105
|
|
|
$
|
105
|
|
|
$
|
—
|
|
|
$
|
211
|
|
|
$
|
206
|
|
|
$
|
5
|
|
•
|
an increase of $3 million in selling, general and administrative expenses primarily due to an increase in the provision for expected credit losses; offset by
|
•
|
a decrease of $2 million in operating expenses, as well as an increase of $1 million in segment margin primarily due to a decrease in cost of products sold offset by a decrease in revenues as a result of a decrease in average revenue generating horsepower.
|
•
|
an increase of $7 million in segment margin primarily due to an increase revenues as a result of an increase in fleet horsepower and a decrease in cost of products sold; partially offset by
|
•
|
an increase of $4 million in selling, general and administrative expenses primarily due to an increase in the provision for expected credit losses.
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||
Revenues
|
$
|
492
|
|
|
$
|
391
|
|
|
$
|
101
|
|
|
$
|
1,005
|
|
|
$
|
888
|
|
|
$
|
117
|
|
Cost of products sold
|
377
|
|
|
343
|
|
|
34
|
|
|
792
|
|
|
798
|
|
|
(6
|
)
|
||||||
Segment margin
|
115
|
|
|
48
|
|
|
67
|
|
|
213
|
|
|
90
|
|
|
123
|
|
||||||
Unrealized (gains) losses on commodity risk management activities
|
2
|
|
|
(4
|
)
|
|
6
|
|
|
(3
|
)
|
|
(5
|
)
|
|
2
|
|
||||||
Operating expenses, excluding non-cash compensation expense
|
(27
|
)
|
|
(6
|
)
|
|
(21
|
)
|
|
(65
|
)
|
|
(13
|
)
|
|
(52
|
)
|
||||||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(19
|
)
|
|
(20
|
)
|
|
1
|
|
|
(51
|
)
|
|
(33
|
)
|
|
(18
|
)
|
||||||
Adjusted EBITDA related to unconsolidated affiliates
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
||||||
Other and eliminations
|
(67
|
)
|
|
(7
|
)
|
|
(60
|
)
|
|
(48
|
)
|
|
6
|
|
|
(54
|
)
|
||||||
Segment Adjusted EBITDA
|
$
|
4
|
|
|
$
|
13
|
|
|
$
|
(9
|
)
|
|
$
|
46
|
|
|
$
|
46
|
|
|
$
|
—
|
|
•
|
our natural gas marketing operations;
|
•
|
our wholly-owned natural gas compression operations;
|
•
|
our investment in coal handling facilities; and
|
•
|
our Canadian operations, which were acquired in the SemGroup acquisition in December 2019 and include natural gas gathering and processing assets.
|
•
|
a decrease of $7 million due to lower sales of residue gas;
|
•
|
a decrease of $11 million due to lower revenues from our compression equipment business;
|
•
|
a decrease of $7 million due to power trading activities;
|
•
|
a decrease of $5 million due to lower demand and operator production at our natural resources business;
|
•
|
a decrease of $4 million due to storage gains; and
|
•
|
a decrease of $3 million from increased power costs at our compression services business; partially offset by
|
•
|
an increase of $25 million from the acquisition of SemCAMS; and
|
•
|
an increase of $6 million in settled derivatives.
|
•
|
a decrease of $9 million from power trading activities;
|
•
|
a decrease of $9 million due to lower sales of residue gas;
|
•
|
a decrease of $6 million due to lower gas prices and increased power costs at our compression services business;
|
•
|
a decrease of $4 million due to storage, park and loan operations;
|
•
|
a decrease of $18 million due to lower revenue from our compression equipment business;
|
•
|
a decrease of $20 million due to higher merger and acquisition expense;
|
•
|
a decrease of $8 million due to lower demand and operator production at our natural resources business; and
|
•
|
a decrease of $5 million due to the elimination of Sunoco LP’s interest in our JC Nolan joint venture; partially offset by
|
•
|
an increase of $51 million from the acquisition of SemCAMS;
|
•
|
an increase of $17 million from settlement payments received from our ownership of PES; and
|
•
|
an increase of $8 million in settled derivatives.
|
|
Growth
|
|
Maintenance
|
||||||||||||
|
Low
|
|
High
|
|
Low
|
|
High
|
||||||||
Intrastate transportation and storage
|
$
|
10
|
|
|
$
|
20
|
|
|
$
|
40
|
|
|
$
|
45
|
|
Interstate transportation and storage (1)
|
75
|
|
|
100
|
|
|
115
|
|
|
120
|
|
||||
Midstream
|
450
|
|
|
475
|
|
|
105
|
|
|
110
|
|
||||
NGL and refined products transportation and services
|
2,425
|
|
|
2,525
|
|
|
95
|
|
|
105
|
|
||||
Crude oil transportation and services (1)
|
275
|
|
|
300
|
|
|
130
|
|
|
140
|
|
||||
All other (including eliminations)
|
75
|
|
|
100
|
|
|
55
|
|
|
60
|
|
||||
Total capital expenditures
|
$
|
3,310
|
|
|
$
|
3,520
|
|
|
$
|
540
|
|
|
$
|
580
|
|
(1)
|
Includes capital expenditures related to our proportionate ownership of the Bakken, Rover and Bayou Bridge pipeline projects.
|
|
Capital Expenditures Recorded During Period
|
||||||||||
|
Growth
|
|
Maintenance
|
|
Total
|
||||||
Intrastate transportation and storage
|
$
|
2
|
|
|
$
|
34
|
|
|
$
|
36
|
|
Interstate transportation and storage
|
22
|
|
|
34
|
|
|
56
|
|
|||
Midstream
|
243
|
|
|
55
|
|
|
298
|
|
|||
NGL and refined products transportation and services
|
1,340
|
|
|
39
|
|
|
1,379
|
|
|||
Crude oil transportation and services
|
115
|
|
|
37
|
|
|
152
|
|
|||
Investment in Sunoco LP
|
50
|
|
|
9
|
|
|
59
|
|
|||
Investment in USAC
|
69
|
|
|
13
|
|
|
82
|
|
|||
All other (including eliminations)
|
56
|
|
|
18
|
|
|
74
|
|
|||
Total capital expenditures
|
$
|
1,897
|
|
|
$
|
239
|
|
|
$
|
2,136
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
ETO Senior Notes
|
$
|
37,783
|
|
|
$
|
36,118
|
|
Transwestern Senior Notes
|
400
|
|
|
575
|
|
||
Panhandle Senior Notes
|
235
|
|
|
235
|
|
||
Bakken Senior Notes
|
2,500
|
|
|
2,500
|
|
||
Sunoco LP Senior Notes and lease-related obligations
|
2,929
|
|
|
2,935
|
|
||
USAC Senior Notes
|
1,475
|
|
|
1,475
|
|
||
Credit facilities and commercial paper:
|
|
|
|
||||
ETO $2.00 billion Term Loan facility due October 2022
|
2,000
|
|
|
2,000
|
|
||
ETO $5.00 billion Revolving Credit Facility due December 2023 (1)
|
3,010
|
|
|
4,214
|
|
||
Sunoco LP $1.50 billion Revolving Credit Facility due July 2023
|
158
|
|
|
162
|
|
||
USAC $1.60 billion Revolving Credit Facility due April 2023
|
448
|
|
|
403
|
|
||
HFOTCO Tax Exempt Notes due 2050
|
225
|
|
|
225
|
|
||
SemCAMS Revolver due February 2024
|
92
|
|
|
92
|
|
||
SemCAMS Revolver Term Loan A due February 2024
|
251
|
|
|
269
|
|
||
Other long-term debt
|
11
|
|
|
2
|
|
||
Net unamortized premiums, discounts, and fair value adjustments
|
(11
|
)
|
|
4
|
|
||
Deferred debt issuance costs
|
(293
|
)
|
|
(279
|
)
|
||
Total debt
|
51,213
|
|
|
50,930
|
|
||
Less: current maturities of long-term debt
|
34
|
|
|
25
|
|
||
Long-term debt, less current maturities
|
$
|
51,179
|
|
|
$
|
50,905
|
|
(1)
|
Includes $1.11 billion and $1.64 billion of commercial paper outstanding at June 30, 2020 and December 31, 2019, respectively.
|
Period Ended
|
|
Record Date
|
|
Payment Date
|
|
Series A (1)
|
|
Series B (1)
|
|
Series C
|
|
Series D
|
|
Series E
|
|
Series F (2)
|
|
Series G (2)
|
||||||||||||||
December 31, 2019
|
|
February 3, 2020
|
|
February 18, 2020
|
|
$
|
31.25
|
|
|
$
|
33.125
|
|
|
$
|
0.4609
|
|
|
$
|
0.4766
|
|
|
$
|
0.4750
|
|
|
$
|
—
|
|
|
$
|
—
|
|
March 31, 2020
|
|
May 1, 2020
|
|
May 15, 2020
|
|
—
|
|
|
—
|
|
|
0.4609
|
|
|
0.4766
|
|
|
0.4750
|
|
|
21.19
|
|
|
22.36
|
|
|||||||
June 30, 2020
|
|
August 3, 2020
|
|
August 17, 2020
|
|
31.25
|
|
|
33.125
|
|
|
0.4609
|
|
|
0.4766
|
|
|
0.4750
|
|
|
—
|
|
|
—
|
|
(1)
|
Series A Preferred Unit and Series B Preferred Unit distributions are paid on a semi-annual basis.
|
(2)
|
Series F Preferred Unit and Series G Preferred Unit distributions related to the period ended March 31, 2020 represent a prorated initial distribution. Distributions are paid on a semi-annual basis.
|
Quarter Ended
|
|
Record Date
|
|
Payment Date
|
|
Rate
|
||
December 31, 2019
|
|
February 7, 2020
|
|
February 19, 2020
|
|
$
|
0.8255
|
|
March 31, 2020
|
|
May 7, 2020
|
|
May 19, 2020
|
|
0.8255
|
|
|
June 30, 2020
|
|
August 7, 2020
|
|
August 19, 2020
|
|
0.8255
|
|
Quarter Ended
|
|
Record Date
|
|
Payment Date
|
|
Rate
|
||
December 31, 2019
|
|
January 27, 2020
|
|
February 7, 2020
|
|
$
|
0.5250
|
|
March 31, 2020
|
|
April 27, 2020
|
|
May 8, 2020
|
|
0.5250
|
|
|
June 30, 2020
|
|
July 31, 2020
|
|
August 10, 2020
|
|
0.5250
|
|
•
|
changes in the long-term supply of and demand for natural gas, NGLs, refined products and/or crude oil, including as a result of uncertainty regarding the length of time it will take for the United States and the rest of the world to slow the spread of the COVID-19 virus to the point where applicable authorities are comfortable easing current restrictions on various commercial and economic activities; such restrictions are designed to protect public health but also have the effect of reducing demand for natural gas, NGLs, refined products and crude oil;
|
•
|
the severity and duration of world health events, including the recent COVID-19 pandemic, related economic repercussions, actions taken by governmental authorities and other third parties in response to the pandemic and the resulting severe disruption in the oil and gas industry and negative impact on demand for natural gas, NGLs, refined products and crude oil, which may negatively impact our business;
|
•
|
changes in general economic conditions and changes in economic conditions of the crude oil and natural gas industries specifically, including the current significant surplus in the supply of oil and actions by foreign oil-producing nations with respect to oil production levels and announcements of potential changes in such levels, including the ability of those countries to agree on and comply with supply limitation;
|
•
|
uncertainty regarding the timing, pace and extent of an economic recovery in the United States and elsewhere, which in turn will likely affect demand for natural gas, NGLs, refined products and crude oil and therefore the demand for midstream services we provide and the commercial opportunities available to us;
|
•
|
the deterioration of the financial condition of our customers and the potential renegotiation or termination of customer contracts as a result of such deterioration;
|
•
|
operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions;
|
•
|
actions taken by federal, state or local governments to require producers of natural gas, NGL, refined products and crude oil to proration or cut their production levels as a way to address any excess market supply situations;
|
•
|
the ability of our subsidiaries to make cash distributions to us, which is dependent on their results of operations, cash flows and financial condition;
|
•
|
the actual amount of cash distributions by our subsidiaries to us;
|
•
|
the volumes transported on our subsidiaries’ pipelines and gathering systems;
|
•
|
the level of throughput in our subsidiaries’ processing and treating facilities;
|
•
|
the fees our subsidiaries charge and the margins they realize for their gathering, treating, processing, storage and transportation services;
|
•
|
the prices and market demand for, and the relationship between, natural gas and NGLs;
|
•
|
energy prices generally;
|
•
|
the prices of natural gas and NGLs compared to the price of alternative and competing fuels;
|
•
|
the general level of petroleum product demand and the availability and price of NGL supplies;
|
•
|
the level of domestic natural gas, NGL, refined products and crude oil production;
|
•
|
the availability of imported natural gas, NGLs, refined products and crude oil;
|
•
|
actions taken by foreign oil and gas producing nations;
|
•
|
the political and economic stability of petroleum producing nations;
|
•
|
the effect of weather conditions on demand for natural gas, NGLs, refined products and crude oil;
|
•
|
availability of local, intrastate and interstate transportation systems;
|
•
|
the continued ability to find and contract for new sources of natural gas supply;
|
•
|
availability and marketing of competitive fuels;
|
•
|
the impact of energy conservation efforts;
|
•
|
energy efficiencies and technological trends;
|
•
|
governmental regulation and taxation;
|
•
|
changes to, and the application of, regulation of tariff rates and operational requirements related to our subsidiaries’ interstate and intrastate pipelines;
|
•
|
hazards or operating risks incidental to the gathering, treating, processing and transporting of natural gas and NGLs;
|
•
|
competition from other midstream companies and interstate pipeline companies;
|
•
|
loss of key personnel;
|
•
|
loss of key natural gas producers or the providers of fractionation services;
|
•
|
reductions in the capacity or allocations of third-party pipelines that connect with our subsidiaries pipelines and facilities;
|
•
|
the effectiveness of risk-management policies and procedures and the ability of our subsidiaries liquids marketing counterparties to satisfy their financial commitments;
|
•
|
the nonpayment or nonperformance by our subsidiaries’ customers;
|
•
|
regulatory, environmental, political and legal uncertainties that may affect the timing and cost of our subsidiaries' internal growth projects, such as our subsidiaries' construction of additional pipeline systems;
|
•
|
risks associated with the construction of new pipelines and treating and processing facilities or additions to our subsidiaries' existing pipelines and facilities, including difficulties in obtaining permits and rights-of-way or other regulatory approvals and the performance by third-party contractors;
|
•
|
the availability and cost of capital and our subsidiaries' ability to access certain capital sources;
|
•
|
a deterioration of the credit and capital markets;
|
•
|
risks associated with the assets and operations of entities in which our subsidiaries own less than a controlling interests, including risks related to management actions at such entities that our subsidiaries may not be able to control or exert influence;
|
•
|
the ability to successfully identify and consummate strategic acquisitions at purchase prices that are accretive to our financial results and to successfully integrate acquired businesses;
|
•
|
changes in laws and regulations to which we are subject, including tax, environmental, transportation and employment regulations or new interpretations by regulatory agencies concerning such laws and regulations; and
|
•
|
the costs and effects of legal and administrative proceedings.
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||||||||
|
Notional Volume
|
|
Fair Value Asset (Liability)
|
|
Effect of Hypothetical 10% Change
|
|
Notional Volume
|
|
Fair Value Asset (Liability)
|
|
Effect of Hypothetical 10% Change
|
||||||||||
Mark-to-Market Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Trading)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural Gas (BBtu):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basis Swaps IFERC/NYMEX (1)
|
(20,433
|
)
|
|
$
|
10
|
|
|
$
|
4
|
|
|
(35,208
|
)
|
|
$
|
2
|
|
|
$
|
5
|
|
Fixed Swaps/Futures
|
373
|
|
|
—
|
|
|
—
|
|
|
1,483
|
|
|
—
|
|
|
—
|
|
||||
Power (Megawatt):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Forwards
|
1,338,776
|
|
|
4
|
|
|
3
|
|
|
3,213,450
|
|
|
6
|
|
|
8
|
|
||||
Futures
|
204,090
|
|
|
—
|
|
|
1
|
|
|
(353,527
|
)
|
|
1
|
|
|
2
|
|
||||
Options – Puts
|
(340,743
|
)
|
|
1
|
|
|
—
|
|
|
51,615
|
|
|
1
|
|
|
—
|
|
||||
Options – Calls
|
(1,268,532
|
)
|
|
1
|
|
|
—
|
|
|
(2,704,330
|
)
|
|
1
|
|
|
—
|
|
||||
(Non-Trading)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural Gas (BBtu):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basis Swaps IFERC/NYMEX
|
(27,713
|
)
|
|
19
|
|
|
8
|
|
|
(18,923
|
)
|
|
(35
|
)
|
|
15
|
|
||||
Swing Swaps IFERC
|
(35,590
|
)
|
|
(3
|
)
|
|
8
|
|
|
(9,265
|
)
|
|
—
|
|
|
4
|
|
||||
Fixed Swaps/Futures
|
(10,708
|
)
|
|
(20
|
)
|
|
20
|
|
|
(3,085
|
)
|
|
(1
|
)
|
|
1
|
|
||||
Forward Physical Contracts
|
(23,980
|
)
|
|
6
|
|
|
6
|
|
|
(13,364
|
)
|
|
3
|
|
|
3
|
|
||||
NGLs (MBbls) – Forwards/Swaps
|
(8,830
|
)
|
|
(10
|
)
|
|
20
|
|
|
(1,300
|
)
|
|
(18
|
)
|
|
18
|
|
||||
Refined Products (MBbls) – Futures
|
(3,370
|
)
|
|
(17
|
)
|
|
1
|
|
|
(2,473
|
)
|
|
(2
|
)
|
|
16
|
|
||||
Crude (MBbls) – Forwards/Swaps
|
3,393
|
|
|
2
|
|
|
—
|
|
|
4,465
|
|
|
13
|
|
|
2
|
|
||||
Corn (thousand bushels)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,210
|
)
|
|
—
|
|
|
—
|
|
||||
Fair Value Hedging Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Non-Trading)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural Gas (BBtu):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basis Swaps IFERC/NYMEX
|
(43,235
|
)
|
|
—
|
|
|
10
|
|
|
(31,780
|
)
|
|
1
|
|
|
7
|
|
||||
Fixed Swaps/Futures
|
(43,235
|
)
|
|
(4
|
)
|
|
11
|
|
|
(31,780
|
)
|
|
23
|
|
|
7
|
|
(1)
|
Includes aggregate amounts for open positions related to Houston Ship Channel, Waha Hub, NGPL TexOk, West Louisiana Zone and Henry Hub locations.
|
Term
|
|
Type(1)
|
|
Notional Amount Outstanding
|
||||||
June 30,
2020 |
|
December 31,
2019 |
||||||||
July 2020(2)(3)
|
|
Forward-starting to pay a fixed rate of 3.52% and receive a floating rate
|
|
$
|
—
|
|
|
$
|
400
|
|
July 2021(2)
|
|
Forward-starting to pay a fixed rate of 3.55% and receive a floating rate
|
|
400
|
|
|
400
|
|
||
July 2022(2)
|
|
Forward-starting to pay a fixed rate of 3.80% and receive a floating rate
|
|
400
|
|
|
400
|
|
(2)
|
Represents the effective date. These forward-starting swaps have terms of 30 years with a mandatory termination date the same as the effective date.
|
Exhibit Number
|
|
Description
|
3.1
|
|
|
3.2
|
|
|
3.3
|
|
|
3.4
|
|
|
3.5
|
|
|
3.6
|
|
|
3.7
|
|
|
3.8
|
|
|
3.9
|
|
|
3.10
|
|
|
3.11
|
|
|
3.12
|
|
|
3.13
|
|
|
3.14
|
|
|
3.15
|
|
|
3.16
|
|
|
3.17
|
|
|
3.18
|
|
4.1
|
|
|
4.2
|
|
|
22.1
|
|
|
31.1*
|
|
|
31.2*
|
|
|
32.1**
|
|
|
32.2**
|
|
|
101*
|
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) our Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019; (ii) our Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019; (iii) our Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2020 and 2019; (iv) our Consolidated Statements of Partners’ Capital for the three and six months ended June 30, 2020 and 2019; (v) our Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019; and (vi) the notes to our Consolidated Financial Statements.
|
104
|
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
*
|
|
Filed herewith.
|
**
|
|
Furnished herewith.
|
|
|
ENERGY TRANSFER OPERATING, L.P.
|
|
|
|
|
|
|
|
By:
|
Energy Transfer Partners GP, L.P.,
|
|
|
|
its general partner
|
|
|
|
|
|
|
By:
|
Energy Transfer Partners, L.L.C.,
|
|
|
|
its general partner
|
|
|
|
|
Date:
|
August 6, 2020
|
By:
|
/s/ A. Troy Sturrock
|
|
|
|
A. Troy Sturrock
|
|
|
|
Senior Vice President, Controller and Principal Accounting Officer
(duly authorized to sign on behalf of the registrant)
|
1 Year Energy Transfer Operating Chart |
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