|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
73-1493906
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
|
|
ý
|
|
Accelerated filer
|
|
¨
|
Non-accelerated filer
|
|
¨
|
|
Smaller reporting company
|
|
¨
|
|
|
|
|
Emerging growth company
|
|
¨
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
7.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
|
|
ETPpC
|
|
New York Stock Exchange
|
7.625% Series D Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
|
|
ETPpD
|
|
New York Stock Exchange
|
7.600% Series E Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
|
|
ETPpE
|
|
New York Stock Exchange
|
7.500% Senior Notes due 2020
|
|
ETP 20
|
|
New York Stock Exchange
|
4.250% Senior Notes due 2023
|
|
ETP 23
|
|
New York Stock Exchange
|
5.875% Senior Notes due 2024
|
|
ETP 24
|
|
New York Stock Exchange
|
5.500% Senior Notes due 2027
|
|
ETP 27
|
|
New York Stock Exchange
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/d
|
|
per day
|
|
|
|
|
|
AOCI
|
|
accumulated other comprehensive income (loss)
|
|
|
|
|
|
BBtu
|
|
billion British thermal units
|
|
|
|
|
|
Btu
|
|
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
|
|
|
|
|
|
Capacity
|
|
capacity of a pipeline, processing plant or storage facility refers to the maximum capacity under normal operating conditions and, with respect to pipeline transportation capacity, is subject to multiple factors (including natural gas injections and withdrawals at various delivery points along the pipeline and the utilization of compression) which may reduce the throughput capacity from specified capacity levels
|
|
|
|
|
|
CDM
|
|
CDM Resource Management LLC and CDM Environmental & Technical Services LLC, collectively
|
|
|
|
|
|
Citrus
|
|
Citrus, LLC, which owns 100% of FGT
|
|
|
|
|
|
DOJ
|
|
United States Department of Justice
|
|
|
|
|
|
EPA
|
|
United States Environmental Protection Agency
|
|
|
|
|
|
ET
|
|
Energy Transfer LP
|
|
|
|
|
|
ETP GP
|
|
Energy Transfer Partners GP, L.P., the general partner of ETO
|
|
|
|
|
|
ETP LLC
|
|
Energy Transfer Partners, L.L.C., the general partner of ETP GP
|
|
|
|
|
|
Exchange Act
|
|
Securities Exchange Act of 1934
|
|
|
|
|
|
FEP
|
|
Fayetteville Express Pipeline LLC
|
|
|
|
|
|
FERC
|
|
Federal Energy Regulatory Commission
|
|
|
|
|
|
FGT
|
|
Florida Gas Transmission Company, LLC
|
|
|
|
|
|
GAAP
|
|
accounting principles generally accepted in the United States of America
|
|
|
|
|
|
IDRs
|
|
incentive distribution rights
|
|
|
|
|
|
Lake Charles LNG
|
|
Lake Charles LNG Company, LLC (previously named Trunkline LNG Company, LLC)
|
|
|
|
|
|
LIBOR
|
|
London Interbank Offered Rate
|
|
|
|
|
|
MBbls
|
|
thousand barrels
|
|
|
|
|
|
MEP
|
|
Midcontinent Express Pipeline LLC
|
|
|
|
|
|
MTBE
|
|
methyl tertiary butyl ether
|
|
|
|
|
|
NGL
|
|
natural gas liquid, such as propane, butane and natural gasoline
|
|
|
|
|
|
NYMEX
|
|
New York Mercantile Exchange
|
|
|
|
|
|
OSHA
|
|
federal Occupational Safety and Health Act
|
|
|
|
|
|
OTC
|
|
over-the-counter
|
|
|
|
|
|
Panhandle
|
|
Panhandle Eastern Pipe Line Company, LP and its subsidiaries
|
|
|
|
|
|
PES
|
|
Philadelphia Energy Solutions Refining and Marketing LLC
|
|
|
|
|
|
Regency
|
|
Regency Energy Partners LP
|
|
|
|
|
|
Rover
|
|
Rover Pipeline LLC, a subsidiary of ETO
|
|
|
|
|
|
SEC
|
|
Securities and Exchange Commission
|
|
|
|
|
|
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
|
|
|
|
|
|
Transwestern
|
|
Transwestern Pipeline Company, LLC
|
|
|
|
|
|
Trunkline
|
|
Trunkline Gas Company, LLC, a subsidiary of Panhandle
|
|
|
|
|
|
USAC
|
|
USA Compression Partners, LP
|
|
|
|
|
|
USAC Preferred Units
|
|
USAC Series A Preferred Units
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
516
|
|
|
$
|
418
|
|
Accounts receivable, net
|
4,312
|
|
|
4,009
|
|
||
Accounts receivable from related companies
|
174
|
|
|
176
|
|
||
Inventories
|
1,722
|
|
|
1,677
|
|
||
Income taxes receivable
|
48
|
|
|
73
|
|
||
Derivative assets
|
70
|
|
|
111
|
|
||
Other current assets
|
313
|
|
|
356
|
|
||
Current assets held for sale
|
28
|
|
|
—
|
|
||
Total current assets
|
7,183
|
|
|
6,820
|
|
||
|
|
|
|
||||
Property, plant and equipment
|
80,295
|
|
|
79,280
|
|
||
Accumulated depreciation and depletion
|
(13,282
|
)
|
|
(12,625
|
)
|
||
|
67,013
|
|
|
66,655
|
|
||
|
|
|
|
||||
Advances to and investments in unconsolidated affiliates
|
2,647
|
|
|
2,636
|
|
||
Lease right-of-use assets, net
|
872
|
|
|
—
|
|
||
Other non-current assets, net
|
1,007
|
|
|
1,006
|
|
||
Long-term receivables from related company
|
5,229
|
|
|
440
|
|
||
Intangible assets, net
|
5,912
|
|
|
6,000
|
|
||
Goodwill
|
4,885
|
|
|
4,885
|
|
||
Total assets
|
$
|
94,748
|
|
|
$
|
88,442
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
3,965
|
|
|
$
|
3,491
|
|
Accounts payable to related companies
|
53
|
|
|
119
|
|
||
Derivative liabilities
|
85
|
|
|
185
|
|
||
Operating lease current liabilities
|
68
|
|
|
—
|
|
||
Accrued and other current liabilities
|
2,294
|
|
|
2,847
|
|
||
Current maturities of long-term debt
|
157
|
|
|
2,655
|
|
||
Total current liabilities
|
6,622
|
|
|
9,297
|
|
||
|
|
|
|
||||
Long-term debt, less current maturities
|
46,241
|
|
|
37,853
|
|
||
Non-current derivative liabilities
|
150
|
|
|
104
|
|
||
Non-current operating lease liabilities
|
817
|
|
|
—
|
|
||
Deferred income taxes
|
2,982
|
|
|
2,884
|
|
||
Other non-current liabilities
|
1,154
|
|
|
1,184
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
||||
Redeemable noncontrolling interests
|
499
|
|
|
499
|
|
||
|
|
|
|
||||
Equity:
|
|
|
|
||||
Limited Partners:
|
|
|
|
||||
Series A Preferred Unitholders
|
943
|
|
|
958
|
|
||
Series B Preferred Unitholders
|
547
|
|
|
556
|
|
||
Series C Preferred Unitholders
|
440
|
|
|
440
|
|
||
Series D Preferred Unitholders
|
434
|
|
|
434
|
|
||
Common Unitholders
|
25,909
|
|
|
26,372
|
|
||
Accumulated other comprehensive loss
|
(34
|
)
|
|
(42
|
)
|
||
Total partners’ capital
|
28,239
|
|
|
28,718
|
|
||
Noncontrolling interest
|
8,044
|
|
|
7,903
|
|
||
Total equity
|
36,283
|
|
|
36,621
|
|
||
Total liabilities and equity
|
$
|
94,748
|
|
|
$
|
88,442
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
REVENUES:
|
|
|
|
||||
Refined product sales
|
$
|
3,726
|
|
|
$
|
3,603
|
|
Crude sales
|
3,525
|
|
|
3,256
|
|
||
NGL sales
|
2,402
|
|
|
2,235
|
|
||
Gathering, transportation and other fees
|
2,267
|
|
|
1,430
|
|
||
Natural gas sales
|
964
|
|
|
1,062
|
|
||
Other
|
237
|
|
|
296
|
|
||
Total revenues
|
13,121
|
|
|
11,882
|
|
||
COSTS AND EXPENSES:
|
|
|
|
||||
Cost of products sold
|
9,415
|
|
|
9,245
|
|
||
Operating expenses
|
808
|
|
|
724
|
|
||
Depreciation, depletion and amortization
|
771
|
|
|
661
|
|
||
Selling, general and administrative
|
149
|
|
|
147
|
|
||
Impairment losses
|
50
|
|
|
—
|
|
||
Total costs and expenses
|
11,193
|
|
|
10,777
|
|
||
OPERATING INCOME
|
1,928
|
|
|
1,105
|
|
||
OTHER INCOME (EXPENSE):
|
|
|
|
||||
Interest expense, net
|
(527
|
)
|
|
(380
|
)
|
||
Equity in earnings of unconsolidated affiliates
|
65
|
|
|
79
|
|
||
Losses on extinguishments of debt
|
(2
|
)
|
|
(109
|
)
|
||
Gains (losses) on interest rate derivatives
|
(74
|
)
|
|
52
|
|
||
Other, net
|
17
|
|
|
57
|
|
||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE (BENEFIT)
|
1,407
|
|
|
804
|
|
||
Income tax expense (benefit)
|
126
|
|
|
(10
|
)
|
||
INCOME FROM CONTINUING OPERATIONS
|
1,281
|
|
|
814
|
|
||
Loss from discontinued operations
|
—
|
|
|
(237
|
)
|
||
NET INCOME
|
1,281
|
|
|
577
|
|
||
Less: Net income attributable to noncontrolling interest
|
256
|
|
|
164
|
|
||
Less: Net income attributable to redeemable noncontrolling interest
|
13
|
|
|
—
|
|
||
Less: Net loss attributable to predecessor equity
|
—
|
|
|
(302
|
)
|
||
NET INCOME ATTRIBUTABLE TO PARTNERS
|
$
|
1,012
|
|
|
$
|
715
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Net income
|
$
|
1,281
|
|
|
$
|
577
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Change in value of available-for-sale securities
|
5
|
|
|
(2
|
)
|
||
Actuarial gain (loss) related to pension and other postretirement benefit plans
|
7
|
|
|
(2
|
)
|
||
Change in other comprehensive income from unconsolidated affiliates
|
(4
|
)
|
|
5
|
|
||
|
8
|
|
|
1
|
|
||
Comprehensive income
|
1,289
|
|
|
578
|
|
||
Less: Comprehensive income attributable to noncontrolling interest
|
256
|
|
|
164
|
|
||
Less: Comprehensive income attributable to redeemable noncontrolling interest
|
13
|
|
|
—
|
|
||
Less: Comprehensive loss attributable to predecessor equity
|
—
|
|
|
(302
|
)
|
||
Comprehensive income attributable to partners
|
$
|
1,020
|
|
|
$
|
716
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||||||||||
|
Limited Partners
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Series A Preferred Unitholders
|
|
Series B Preferred Unitholders
|
|
Series C Preferred Unitholders
|
|
Series D Preferred Unitholders
|
|
Common Unitholders
|
|
AOCI
|
|
Non-controlling Interest
|
|
Total
|
||||||||||||||||
Balance, December 31, 2018
|
$
|
958
|
|
|
$
|
556
|
|
|
$
|
440
|
|
|
$
|
434
|
|
|
$
|
26,372
|
|
|
$
|
(42
|
)
|
|
$
|
7,903
|
|
|
$
|
36,621
|
|
Distributions to partners
|
(30
|
)
|
|
(18
|
)
|
|
(8
|
)
|
|
(8
|
)
|
|
(1,450
|
)
|
|
—
|
|
|
—
|
|
|
(1,514
|
)
|
||||||||
Distributions to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(361
|
)
|
|
(361
|
)
|
||||||||
Capital contributions from noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
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 interests
|
15
|
|
|
9
|
|
|
8
|
|
|
8
|
|
|
972
|
|
|
—
|
|
|
256
|
|
|
1,268
|
|
||||||||
Balance, March 31, 2019
|
$
|
943
|
|
|
$
|
547
|
|
|
$
|
440
|
|
|
$
|
434
|
|
|
$
|
25,909
|
|
|
$
|
(34
|
)
|
|
$
|
8,044
|
|
|
$
|
36,283
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||||||||||||||
|
Limited Partners
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Series A Preferred Unitholders
|
|
Series B Preferred Unitholders
|
|
Common Unitholders
|
|
General Partner
|
|
AOCI
|
|
Non-controlling Interest
|
|
Predecessor Equity
|
|
Total
|
||||||||||||||||
Balance, December 31, 2017
|
$
|
944
|
|
|
$
|
547
|
|
|
$
|
26,531
|
|
|
$
|
244
|
|
|
$
|
3
|
|
|
$
|
5,882
|
|
|
$
|
2,816
|
|
|
$
|
36,967
|
|
Distributions to partners
|
(15
|
)
|
|
(9
|
)
|
|
(657
|
)
|
|
(264
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(945
|
)
|
||||||||
Distributions to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(183
|
)
|
|
(70
|
)
|
|
(253
|
)
|
||||||||
Units issued for cash
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||||||
Repurchases of common units
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
||||||||
Subsidiary repurchases of common units
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(300
|
)
|
|
(300
|
)
|
||||||||
Capital contributions from noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
229
|
|
|
—
|
|
|
229
|
|
||||||||
Cumulative effect adjustment due to change in accounting principle
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(54
|
)
|
|
(54
|
)
|
||||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Other, net
|
(1
|
)
|
|
(1
|
)
|
|
(16
|
)
|
|
(17
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
1
|
|
|
(42
|
)
|
||||||||
Net income (loss)
|
15
|
|
|
9
|
|
|
289
|
|
|
402
|
|
|
—
|
|
|
164
|
|
|
(302
|
)
|
|
577
|
|
||||||||
Balance, March 31, 2018
|
$
|
943
|
|
|
$
|
546
|
|
|
$
|
26,143
|
|
|
$
|
365
|
|
|
$
|
2
|
|
|
$
|
6,086
|
|
|
$
|
2,091
|
|
|
$
|
36,176
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
1,281
|
|
|
$
|
577
|
|
Reconciliation of net income to net cash provided by operating activities:
|
|
|
|
||||
Loss from discontinued operations
|
—
|
|
|
237
|
|
||
Depreciation, depletion and amortization
|
771
|
|
|
661
|
|
||
Deferred income taxes
|
98
|
|
|
(11
|
)
|
||
Inventory valuation adjustments
|
(93
|
)
|
|
(25
|
)
|
||
Non-cash compensation expense
|
29
|
|
|
23
|
|
||
Impairment losses
|
50
|
|
|
—
|
|
||
Losses on extinguishments of debt
|
2
|
|
|
109
|
|
||
Distributions on unvested awards
|
(1
|
)
|
|
(16
|
)
|
||
Equity in earnings of unconsolidated affiliates
|
(65
|
)
|
|
(79
|
)
|
||
Distributions from unconsolidated affiliates
|
66
|
|
|
70
|
|
||
Other non-cash
|
107
|
|
|
(72
|
)
|
||
Net change in operating assets and liabilities, net of effects of acquisitions
|
(399
|
)
|
|
741
|
|
||
Net cash provided by operating activities
|
1,846
|
|
|
2,215
|
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Cash proceeds from sale of noncontrolling interest in subsidiary
|
93
|
|
|
—
|
|
||
Cash paid for all other acquisitions
|
(5
|
)
|
|
(5
|
)
|
||
Capital expenditures, excluding allowance for equity funds used during construction
|
(1,150
|
)
|
|
(1,737
|
)
|
||
Contributions in aid of construction costs
|
15
|
|
|
20
|
|
||
Contributions to unconsolidated affiliates
|
(28
|
)
|
|
(8
|
)
|
||
Distributions from unconsolidated affiliates in excess of cumulative earnings
|
13
|
|
|
27
|
|
||
Proceeds from the sale of assets
|
4
|
|
|
3
|
|
||
Other
|
(40
|
)
|
|
(1
|
)
|
||
Net cash used in investing activities
|
(1,098
|
)
|
|
(1,701
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from borrowings
|
11,295
|
|
|
6,573
|
|
||
Repayments of debt
|
(9,513
|
)
|
|
(8,171
|
)
|
||
Cash paid for note receivable from related company
|
(613
|
)
|
|
(41
|
)
|
||
Common units issued for cash
|
—
|
|
|
20
|
|
||
Capital contributions from noncontrolling interest
|
140
|
|
|
229
|
|
||
Distributions to partners
|
(1,514
|
)
|
|
(945
|
)
|
||
Predecessor distributions to partners
|
—
|
|
|
(77
|
)
|
||
Distributions to noncontrolling interest
|
(361
|
)
|
|
(183
|
)
|
||
Repurchases of common units
|
—
|
|
|
(24
|
)
|
||
Subsidiary repurchases of common units
|
—
|
|
|
(300
|
)
|
||
Debt issuance costs
|
(84
|
)
|
|
(117
|
)
|
||
Other
|
—
|
|
|
(7
|
)
|
||
Net cash used in financing activities
|
(650
|
)
|
|
(3,043
|
)
|
||
DISCONTINUED OPERATIONS
|
|
|
|
||||
Operating activities
|
—
|
|
|
(485
|
)
|
||
Investing activities
|
—
|
|
|
3,214
|
|
||
Changes in cash included in current assets held for sale
|
—
|
|
|
11
|
|
||
Net increase in cash and cash equivalents of discontinued operations
|
—
|
|
|
2,740
|
|
||
Increase in cash and cash equivalents
|
98
|
|
|
211
|
|
||
Cash and cash equivalents, beginning of period
|
418
|
|
|
335
|
|
||
Cash and cash equivalents, end of period
|
$
|
516
|
|
|
$
|
546
|
|
1.
|
ORGANIZATION AND BASIS OF PRESENTATION
|
•
|
the IDRs in ETO were converted into
1,168,205,710
ETO common units;
|
•
|
the
general partner interest in ETO was converted to a non-economic general partner interest and ETO issued
18,448,341
ETO common units to ETP GP;
|
•
|
ET contributed its
2,263,158
Sunoco LP common units to ETO in exchange for
2,874,275
ETO common units and
100 percent
of the limited liability company interests in Sunoco GP LLC, the sole general partner of Sunoco LP, and all of the IDRs in Sunoco LP, to ETO in exchange for
42,812,389
ETO common units;
|
•
|
ET contributed its
12,466,912
common units representing limited partner interests in USAC and
100 percent
of the limited liability company interests in USA Compression GP, LLC, the general partner of USAC, to ETO in exchange for
16,134,903
ETO common units; and
|
•
|
ET contributed its
100 percent
limited liability company interest in Lake Charles LNG and a
60 percent
limited liability company interest in each of Energy Transfer LNG Export, LLC, ET Crude Oil Terminals, LLC and ETC Illinois LLC (collectively, “Lake Charles LNG and Other”) to ETO in exchange for
37,557,815
ETO common units.
|
|
Balance at December 31, 2018, as previously reported
|
|
Adjustments due to Topic 842 (Leases)
|
|
Balance at January 1, 2019
|
||||||
Assets:
|
|
|
|
|
|
||||||
Property, plant and equipment, net
|
$
|
66,655
|
|
|
$
|
(1
|
)
|
|
$
|
66,654
|
|
Lease right-of-use assets, net
|
—
|
|
|
889
|
|
|
889
|
|
|||
Liabilities:
|
|
|
|
|
|
||||||
Operating lease current liabilities
|
$
|
—
|
|
|
$
|
71
|
|
|
$
|
71
|
|
Accrued and other current liabilities
|
2,847
|
|
|
(1
|
)
|
|
2,846
|
|
|||
Current maturities of long-term debt
|
2,655
|
|
|
1
|
|
|
2,656
|
|
|||
Long-term debt, less current maturities
|
37,853
|
|
|
6
|
|
|
37,859
|
|
|||
Non-current operating lease liabilities
|
—
|
|
|
823
|
|
|
823
|
|
|||
Other non-current liabilities
|
1,184
|
|
|
(12
|
)
|
|
1,172
|
|
2.
|
ACQUISITIONS, DIVESTURES AND RELATED TRANSACTIONS
|
|
Three Months Ended March 31, 2018
|
||
REVENUES
|
$
|
349
|
|
|
|
||
COSTS AND EXPENSES
|
|
||
Cost of products sold
|
305
|
|
|
Operating expenses
|
61
|
|
|
Selling, general and administrative
|
2
|
|
|
Total costs and expenses
|
368
|
|
|
OPERATING LOSS
|
(19
|
)
|
|
Interest expense, net
|
2
|
|
|
Loss on extinguishment of debt and other
|
20
|
|
|
Other, net
|
23
|
|
|
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAX EXPENSE
|
(64
|
)
|
|
Income tax expense
|
173
|
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES
|
$
|
(237
|
)
|
3.
|
CASH AND CASH EQUIVALENTS
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Accounts receivable
|
$
|
(302
|
)
|
|
$
|
907
|
|
Accounts receivable from related companies
|
(28
|
)
|
|
103
|
|
||
Inventories
|
49
|
|
|
186
|
|
||
Other current assets
|
91
|
|
|
(46
|
)
|
||
Other non-current assets, net
|
(10
|
)
|
|
7
|
|
||
Accounts payable
|
323
|
|
|
(810
|
)
|
||
Accounts payable to related companies
|
(69
|
)
|
|
(125
|
)
|
||
Accrued and other current liabilities
|
(409
|
)
|
|
508
|
|
||
Other non-current liabilities
|
(31
|
)
|
|
20
|
|
||
Derivative assets and liabilities, net
|
(13
|
)
|
|
(9
|
)
|
||
Net change in operating assets and liabilities, net of effects of acquisitions
|
$
|
(399
|
)
|
|
$
|
741
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Accrued capital expenditures
|
$
|
630
|
|
|
$
|
1,011
|
|
Losses from subsidiary common unit transactions
|
—
|
|
|
(104
|
)
|
||
Lease assets obtained in exchange for new lease liabilities
|
8
|
|
|
—
|
|
4.
|
INVENTORIES
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Natural gas, NGLs and refined products
|
$
|
760
|
|
|
$
|
833
|
|
Crude oil
|
589
|
|
|
506
|
|
||
Spare parts and other
|
373
|
|
|
338
|
|
||
Total inventories
|
$
|
1,722
|
|
|
$
|
1,677
|
|
5.
|
FAIR VALUE MEASURES
|
|
|
|
Fair Value Measurements at
March 31, 2019 |
||||||||
|
Fair Value Total
|
|
Level 1
|
|
Level 2
|
||||||
Assets:
|
|
|
|
|
|
||||||
Commodity derivatives:
|
|
|
|
|
|
||||||
Natural Gas:
|
|
|
|
|
|
||||||
Basis Swaps IFERC/NYMEX
|
$
|
40
|
|
|
$
|
40
|
|
|
$
|
—
|
|
Swing Swaps IFERC
|
3
|
|
|
1
|
|
|
2
|
|
|||
Fixed Swaps/Futures
|
16
|
|
|
16
|
|
|
—
|
|
|||
Forward Physical Contracts
|
10
|
|
|
—
|
|
|
10
|
|
|||
Power:
|
|
|
|
|
|
||||||
Forwards
|
44
|
|
|
—
|
|
|
44
|
|
|||
Futures
|
7
|
|
|
7
|
|
|
—
|
|
|||
NGLs – Forwards/Swaps
|
162
|
|
|
162
|
|
|
—
|
|
|||
Refined Products – Futures
|
5
|
|
|
5
|
|
|
—
|
|
|||
Crude – Forwards/Swaps
|
51
|
|
|
51
|
|
|
—
|
|
|||
Total commodity derivatives
|
338
|
|
|
282
|
|
|
56
|
|
|||
Other non-current assets
|
28
|
|
|
18
|
|
|
10
|
|
|||
Total assets
|
$
|
366
|
|
|
$
|
300
|
|
|
$
|
66
|
|
Liabilities:
|
|
|
|
|
|
||||||
Interest rate derivatives
|
$
|
(232
|
)
|
|
$
|
—
|
|
|
$
|
(232
|
)
|
Commodity derivatives:
|
|
|
|
|
|
||||||
Natural Gas:
|
|
|
|
|
|
||||||
Basis Swaps IFERC/NYMEX
|
(81
|
)
|
|
(81
|
)
|
|
—
|
|
|||
Swing Swaps IFERC
|
(4
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|||
Fixed Swaps/Futures
|
(18
|
)
|
|
(18
|
)
|
|
—
|
|
|||
Forward Physical Contracts
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
Power:
|
|
|
|
|
|
||||||
Forwards
|
(35
|
)
|
|
—
|
|
|
(35
|
)
|
|||
Futures
|
(6
|
)
|
|
(6
|
)
|
|
—
|
|
|||
NGLs – Forwards/Swaps
|
(155
|
)
|
|
(155
|
)
|
|
—
|
|
|||
Refined Products – Futures
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|||
Crude – Forwards/Swaps
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|||
Total commodity derivatives
|
(309
|
)
|
|
(267
|
)
|
|
(42
|
)
|
|||
Total liabilities
|
$
|
(541
|
)
|
|
$
|
(267
|
)
|
|
$
|
(274
|
)
|
|
|
|
Fair Value Measurements at
December 31, 2018 |
||||||||
|
Fair Value Total
|
|
Level 1
|
|
Level 2
|
||||||
Assets:
|
|
|
|
|
|
||||||
Commodity derivatives:
|
|
|
|
|
|
||||||
Natural Gas:
|
|
|
|
|
|
||||||
Basis Swaps IFERC/NYMEX
|
$
|
42
|
|
|
$
|
42
|
|
|
$
|
—
|
|
Swing Swaps IFERC
|
52
|
|
|
8
|
|
|
44
|
|
|||
Fixed Swaps/Futures
|
97
|
|
|
97
|
|
|
—
|
|
|||
Forward Physical Contracts
|
20
|
|
|
—
|
|
|
20
|
|
|||
Power:
|
|
|
|
|
|
|
|||||
Forwards
|
48
|
|
|
—
|
|
|
48
|
|
|||
Futures
|
1
|
|
|
1
|
|
|
—
|
|
|||
Options – Calls
|
1
|
|
|
1
|
|
|
—
|
|
|||
NGLs – Forwards/Swaps
|
291
|
|
|
291
|
|
|
—
|
|
|||
Refined Products – Futures
|
7
|
|
|
7
|
|
|
—
|
|
|||
Crude – Forwards/Swaps
|
1
|
|
|
1
|
|
|
—
|
|
|||
Total commodity derivatives
|
560
|
|
|
448
|
|
|
112
|
|
|||
Other non-current assets
|
26
|
|
|
17
|
|
|
9
|
|
|||
Total assets
|
$
|
586
|
|
|
$
|
465
|
|
|
$
|
121
|
|
Liabilities:
|
|
|
|
|
|
||||||
Interest rate derivatives
|
$
|
(163
|
)
|
|
$
|
—
|
|
|
$
|
(163
|
)
|
Commodity derivatives:
|
|
|
|
|
|
||||||
Natural Gas:
|
|
|
|
|
|
||||||
Basis Swaps IFERC/NYMEX
|
(91
|
)
|
|
(91
|
)
|
|
—
|
|
|||
Swing Swaps IFERC
|
(40
|
)
|
|
—
|
|
|
(40
|
)
|
|||
Fixed Swaps/Futures
|
(88
|
)
|
|
(88
|
)
|
|
—
|
|
|||
Forward Physical Contracts
|
(21
|
)
|
|
—
|
|
|
(21
|
)
|
|||
Power:
|
|
|
|
|
|
|
|||||
Forwards
|
(42
|
)
|
|
—
|
|
|
(42
|
)
|
|||
Futures
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|||
NGLs – Forwards/Swaps
|
(224
|
)
|
|
(224
|
)
|
|
—
|
|
|||
Refined Products – Futures
|
(15
|
)
|
|
(15
|
)
|
|
—
|
|
|||
Crude – Forwards/Swaps
|
(61
|
)
|
|
(61
|
)
|
|
—
|
|
|||
Total commodity derivatives
|
(583
|
)
|
|
(480
|
)
|
|
(103
|
)
|
|||
Total liabilities
|
$
|
(746
|
)
|
|
$
|
(480
|
)
|
|
$
|
(266
|
)
|
6.
|
DEBT OBLIGATIONS
|
7.
|
REDEEMABLE NONCONTROLLING INTERESTS
|
8.
|
EQUITY
|
|
Series A
|
|
Series B
|
|
Series C
|
|
Series D
|
||||
Number of units outstanding
|
950,000
|
|
|
550,000
|
|
|
18,000,000
|
|
|
17,800,000
|
|
Period Ended
|
|
Record Date
|
|
Payment Date
|
|
Series A
(1)
|
|
Series B
(1)
|
|
Series C
|
|
Series D
|
||||||||
December 31, 2018
|
|
February 1, 2019
|
|
February 15, 2019
|
|
$
|
31.25
|
|
|
$
|
33.125
|
|
|
$
|
0.4609
|
|
|
$
|
0.4766
|
|
March 31, 2019
|
|
May 1, 2019
|
|
May 15, 2019
|
|
—
|
|
|
—
|
|
|
0.4609
|
|
|
0.4766
|
|
Quarter Ended
|
|
Record Date
|
|
Payment Date
|
|
Rate
|
||
December 31, 2018
|
|
February 6, 2019
|
|
February 14, 2019
|
|
$
|
0.8255
|
|
March 31, 2019
|
|
May 7, 2019
|
|
May 15, 2019
|
|
0.8255
|
|
Quarter Ended
|
|
Record Date
|
|
Payment Date
|
|
Rate
|
||
December 31, 2018
|
|
January 28, 2019
|
|
February 8, 2019
|
|
$
|
0.5250
|
|
March 31, 2019
|
|
April 29, 2019
|
|
May 10, 2019
|
|
0.5250
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Available-for-sale securities
|
$
|
7
|
|
|
$
|
2
|
|
Foreign currency translation adjustment
|
(5
|
)
|
|
(5
|
)
|
||
Actuarial loss related to pensions and other postretirement benefits
|
(41
|
)
|
|
(48
|
)
|
||
Investments in unconsolidated affiliates, net
|
5
|
|
|
9
|
|
||
Total AOCI, net of tax
|
$
|
(34
|
)
|
|
$
|
(42
|
)
|
9.
|
INCOME TAXES
|
10.
|
REGULATORY MATTERS, COMMITMENTS, CONTINGENCIES AND ENVIRONMENTAL LIABILITIES
|
•
|
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 potentially be held 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, Inc. that are subject to environmental assessments, including formerly owned terminals and other logistics assets, retail sites that Sunoco, Inc. no longer operates, closed and/or sold refineries and other formerly owned sites.
|
•
|
Sunoco, Inc. 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
March 31, 2019
,
Sunoco, Inc. had been named as a PRP at approximately
38
identified or potentially identifiable “Superfund” sites under federal and/or comparable state law. Sunoco, Inc. is usually one of a number of companies identified as a PRP at a site. Sunoco, Inc. has reviewed the nature and extent of its involvement at each site and other relevant circumstances and, based upon Sunoco, Inc.’s purported nexus to the sites, believes that its potential liability associated with such sites will not be significant.
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Current
|
$
|
48
|
|
|
$
|
42
|
|
Non-current
|
289
|
|
|
295
|
|
||
Total environmental liabilities
|
$
|
337
|
|
|
$
|
337
|
|
11.
|
REVENUE
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Contract Balances
|
|
|
|
||||
Contract asset
|
$
|
84
|
|
|
$
|
75
|
|
Accounts receivable from contracts with customers
|
467
|
|
|
348
|
|
||
Contract liability
|
1
|
|
|
1
|
|
|
|
Years Ending December 31,
|
|
|
|
|
||||||||||||||
|
|
2019 (remainder)
|
|
2020
|
|
2021
|
|
Thereafter
|
|
Total
|
||||||||||
Revenue expected to be recognized on contracts with customers existing as of March 31, 2019
|
|
$
|
4,454
|
|
|
$
|
5,048
|
|
|
$
|
4,503
|
|
|
$
|
27,906
|
|
|
$
|
41,911
|
|
12.
|
LEASE ACCOUNTING
|
|
March 31, 2019
|
||
Operating leases:
|
|
||
Lease right-of-use assets, net
|
$
|
868
|
|
Operating lease current liabilities
|
68
|
|
|
Accrued and other current liabilities
|
1
|
|
|
Non-current operating lease liabilities
|
817
|
|
|
Finance leases:
|
|
||
Property, plant and equipment, net
|
$
|
2
|
|
Lease right-of-use assets, net
|
4
|
|
|
Accrued and other current liabilities
|
1
|
|
|
Long-term debt, less current maturities
|
7
|
|
|
Other non-current liabilities
|
2
|
|
|
|
Income Statement Location
|
|
Three Months Ended March 31, 2019
|
||
Operating lease costs:
|
|
|
||||
Operating lease cost
|
|
Cost of goods sold
|
|
$
|
8
|
|
Operating lease cost
|
|
Operating expenses
|
|
17
|
|
|
Operating lease cost
|
|
Selling, general and administrative
|
|
3
|
|
|
Total operating lease costs
|
|
28
|
|
|||
Finance lease costs:
|
|
|
||||
Amortization of lease assets
|
|
Depreciation, depletion and amortization
|
|
1
|
|
|
Short-term lease cost
|
|
Operating expenses
|
|
11
|
|
|
Variable lease cost
|
|
Operating expenses
|
|
3
|
|
|
Lease costs, gross
|
|
43
|
|
|||
Less: Sublease income
|
|
Other revenue
|
|
11
|
|
|
Lease costs, net
|
|
$
|
32
|
|
|
Three Months Ended March 31, 2019
|
||
Operating cash flows from operating leases
|
$
|
(34
|
)
|
Lease assets obtained in exchange for new operating lease liabilities
|
8
|
|
|
Operating leases
|
|
Finance leases
|
|
Total
|
||||||
2019 (remainder)
|
$
|
85
|
|
|
$
|
2
|
|
|
$
|
87
|
|
2020
|
96
|
|
|
2
|
|
|
98
|
|
|||
2021
|
84
|
|
|
2
|
|
|
86
|
|
|||
2022
|
71
|
|
|
1
|
|
|
72
|
|
|||
2023
|
67
|
|
|
1
|
|
|
68
|
|
|||
Thereafter
|
1,148
|
|
|
7
|
|
|
1,155
|
|
|||
Total lease payments
|
1,551
|
|
|
15
|
|
|
1,566
|
|
|||
Less: present value discount
|
665
|
|
|
5
|
|
|
670
|
|
|||
Present value of lease liabilities
|
$
|
886
|
|
|
$
|
10
|
|
|
$
|
896
|
|
|
Lease Payments
|
||
2019 (remainder)
|
$
|
68
|
|
2020
|
72
|
|
|
2021
|
59
|
|
|
2022
|
53
|
|
|
2023
|
3
|
|
|
Thereafter
|
5
|
|
|
Total undiscounted cash flows
|
$
|
260
|
|
13.
|
DERIVATIVE ASSETS AND LIABILITIES
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||
|
Notional Volume
|
|
Maturity
|
|
Notional Volume
|
|
Maturity
|
||
Mark-to-Market Derivatives
|
|
|
|
|
|
|
|
||
(Trading)
|
|
|
|
|
|
|
|
||
Natural Gas (BBtu):
|
|
|
|
|
|
|
|
||
Fixed Swaps/Futures
|
610
|
|
|
2019-2021
|
|
468
|
|
|
2019
|
Basis Swaps IFERC/NYMEX
(1)
|
2,595
|
|
|
2019-2020
|
|
16,845
|
|
|
2019-2020
|
Options – Puts
|
10,000
|
|
|
2019
|
|
10,000
|
|
|
2019
|
Power (Megawatt):
|
|
|
|
|
|
|
|
||
Forwards
|
2,554,800
|
|
|
2019-2020
|
|
3,141,520
|
|
|
2019
|
Futures
|
14,776
|
|
|
2019-2021
|
|
56,656
|
|
|
2019-2021
|
Options – Puts
|
(144,611
|
)
|
|
2019-2021
|
|
18,400
|
|
|
2019
|
Options – Calls
|
391,740
|
|
|
2019
|
|
284,800
|
|
|
2019
|
(Non-Trading)
|
|
|
|
|
|
|
|
||
Natural Gas (BBtu):
|
|
|
|
|
|
|
|
||
Basis Swaps IFERC/NYMEX
|
(18,250
|
)
|
|
2019-2022
|
|
(30,228
|
)
|
|
2019-2021
|
Swing Swaps IFERC
|
39,685
|
|
|
2019-2020
|
|
54,158
|
|
|
2019-2020
|
Fixed Swaps/Futures
|
80
|
|
|
2019-2021
|
|
(1,068
|
)
|
|
2019-2021
|
Forward Physical Contracts
|
(27,096
|
)
|
|
2019-2021
|
|
(123,254
|
)
|
|
2019-2020
|
NGL (MBbls) – Forwards/Swaps
|
(857
|
)
|
|
2019-2021
|
|
(2,135
|
)
|
|
2019
|
Crude (MBbls) – Forwards/Swaps
|
13,832
|
|
|
2019
|
|
20,888
|
|
|
2019
|
Refined Products (MBbls) – Futures
|
(592
|
)
|
|
2019-2021
|
|
(1,403
|
)
|
|
2019
|
Corn (thousand bushels)
|
(2,070
|
)
|
|
2019
|
|
(1,920
|
)
|
|
2019
|
Fair Value Hedging Derivatives
|
|
|
|
|
|
|
|
||
(Non-Trading)
|
|
|
|
|
|
|
|
||
Natural Gas (BBtu):
|
|
|
|
|
|
|
|
||
Basis Swaps IFERC/NYMEX
|
(30,958
|
)
|
|
2019-2020
|
|
(17,445
|
)
|
|
2019
|
Fixed Swaps/Futures
|
(30,958
|
)
|
|
2019-2020
|
|
(17,445
|
)
|
|
2019
|
Hedged Item – Inventory
|
30,958
|
|
|
2019-2020
|
|
17,445
|
|
|
2019
|
(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
|
||||||
March 31, 2019
|
|
December 31, 2018
|
||||||||
July 2019
(2)
|
|
Forward-starting to pay a fixed rate of 3.56% and receive a floating rate
|
|
$
|
400
|
|
|
$
|
400
|
|
July 2020
(2)
|
|
Forward-starting to pay a fixed rate of 3.52% and receive a floating rate
|
|
400
|
|
|
400
|
|
||
July 2021
(2)
|
|
Forward-starting to pay a fixed rate of 3.55% and receive a floating rate
|
|
400
|
|
|
400
|
|
||
March 2019
|
|
Pay a floating rate and receive a fixed rate of 1.42%
|
|
—
|
|
|
300
|
|
(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.
|
|
|
Fair Value of Derivative Instruments
|
||||||||||||||
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives (margin deposits)
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(13
|
)
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives (margin deposits)
|
|
209
|
|
|
402
|
|
|
(248
|
)
|
|
(397
|
)
|
||||
Commodity derivatives
|
|
127
|
|
|
158
|
|
|
(60
|
)
|
|
(173
|
)
|
||||
Interest rate derivatives
|
|
—
|
|
|
—
|
|
|
(232
|
)
|
|
(163
|
)
|
||||
|
|
336
|
|
|
560
|
|
|
(540
|
)
|
|
(733
|
)
|
||||
Total derivatives
|
|
$
|
338
|
|
|
$
|
560
|
|
|
$
|
(541
|
)
|
|
$
|
(746
|
)
|
|
Location of Gain Recognized in Income on Derivatives
|
|
Amount of Gain Recognized in Income Representing Hedge Ineffectiveness and Amount Excluded from the Assessment of Effectiveness
|
||||||
|
|
|
Three Months Ended
March 31, |
||||||
|
|
|
2019
|
|
2018
|
||||
Derivatives in fair value hedging relationships (including hedged item):
|
|
|
|
|
|
||||
Commodity derivatives
|
Cost of products sold
|
|
$
|
—
|
|
|
$
|
3
|
|
|
Location of Gain (Loss) Recognized in Income on Derivatives
|
|
Amount of Gain (Loss) Recognized in Income on Derivatives
|
||||||
|
|
|
Three Months Ended
March 31, |
||||||
|
|
|
2019
|
|
2018
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||
Commodity derivatives – Trading
|
Cost of products sold
|
|
$
|
5
|
|
|
$
|
17
|
|
Commodity derivatives – Non-trading
|
Cost of products sold
|
|
(12
|
)
|
|
(71
|
)
|
||
Interest rate derivatives
|
Gains (losses) on interest rate derivatives
|
|
(74
|
)
|
|
52
|
|
||
Total
|
|
|
$
|
(81
|
)
|
|
$
|
(2
|
)
|
14.
|
RELATED PARTY TRANSACTIONS
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Revenues from related companies
|
$
|
109
|
|
|
$
|
102
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Accounts receivable from related companies:
|
|
|
|
||||
ET
|
$
|
55
|
|
|
$
|
65
|
|
FGT
|
32
|
|
|
25
|
|
||
Phillips 66
|
33
|
|
|
42
|
|
||
Other
|
54
|
|
|
44
|
|
||
Total accounts receivable from related companies
|
$
|
174
|
|
|
$
|
176
|
|
|
|
|
|
||||
Accounts payable to related companies:
|
|
|
|
||||
ET
|
$
|
—
|
|
|
$
|
59
|
|
Other
|
53
|
|
|
60
|
|
||
Total accounts payable to related companies
|
$
|
53
|
|
|
$
|
119
|
|
15.
|
REPORTABLE SEGMENTS
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Revenues:
|
|
|
|
||||
Intrastate transportation and storage:
|
|
|
|
||||
Revenues from external customers
|
$
|
769
|
|
|
$
|
817
|
|
Intersegment revenues
|
87
|
|
|
58
|
|
||
|
856
|
|
|
875
|
|
||
Interstate transportation and storage:
|
|
|
|
||||
Revenues from external customers
|
492
|
|
|
362
|
|
||
Intersegment revenues
|
6
|
|
|
3
|
|
||
|
498
|
|
|
365
|
|
||
Midstream:
|
|
|
|
||||
Revenues from external customers
|
663
|
|
|
440
|
|
||
Intersegment revenues
|
1,055
|
|
|
1,174
|
|
||
|
1,718
|
|
|
1,614
|
|
||
NGL and refined products transportation and services:
|
|
|
|
||||
Revenues from external customers
|
2,713
|
|
|
2,263
|
|
||
Intersegment revenues
|
318
|
|
|
283
|
|
||
|
3,031
|
|
|
2,546
|
|
||
Crude oil transportation and services:
|
|
|
|
||||
Revenues from external customers
|
4,167
|
|
|
3,731
|
|
||
Intersegment revenues
|
19
|
|
|
14
|
|
||
|
4,186
|
|
|
3,745
|
|
||
Investment in Sunoco LP:
|
|
|
|
||||
Revenues from external customers
|
3,692
|
|
|
3,748
|
|
||
Intersegment revenues
|
—
|
|
|
1
|
|
||
|
3,692
|
|
|
3,749
|
|
||
Investment in USAC:
|
|
|
|
||||
Revenues from external customers
|
167
|
|
|
—
|
|
||
Intersegment revenues
|
4
|
|
|
—
|
|
||
|
171
|
|
|
—
|
|
||
All other:
|
|
|
|
||||
Revenues from external customers
|
458
|
|
|
521
|
|
||
Intersegment revenues
|
39
|
|
|
50
|
|
||
|
497
|
|
|
571
|
|
||
Eliminations
|
(1,528
|
)
|
|
(1,583
|
)
|
||
Total revenues
|
$
|
13,121
|
|
|
$
|
11,882
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Segment Adjusted EBITDA:
|
|
|
|
||||
Intrastate transportation and storage
|
$
|
252
|
|
|
$
|
192
|
|
Interstate transportation and storage
|
456
|
|
|
366
|
|
||
Midstream
|
382
|
|
|
377
|
|
||
NGL and refined products transportation and services
|
612
|
|
|
451
|
|
||
Crude oil transportation and services
|
806
|
|
|
464
|
|
||
Investment in Sunoco LP
|
153
|
|
|
109
|
|
||
Investment in USAC
|
101
|
|
|
—
|
|
||
All other
|
33
|
|
|
45
|
|
||
Total
|
2,795
|
|
|
2,004
|
|
||
Depreciation, depletion and amortization
|
(771
|
)
|
|
(661
|
)
|
||
Interest expense, net
|
(527
|
)
|
|
(380
|
)
|
||
Impairment losses
|
(50
|
)
|
|
—
|
|
||
Gains (losses) on interest rate derivatives
|
(74
|
)
|
|
52
|
|
||
Non-cash compensation expense
|
(29
|
)
|
|
(23
|
)
|
||
Unrealized gains (losses) on commodity risk management activities
|
49
|
|
|
(87
|
)
|
||
Losses on extinguishments of debt
|
(2
|
)
|
|
(109
|
)
|
||
Inventory valuation adjustments
|
93
|
|
|
25
|
|
||
Adjusted EBITDA related to unconsolidated affiliates
|
(146
|
)
|
|
(156
|
)
|
||
Equity in earnings of unconsolidated affiliates
|
65
|
|
|
79
|
|
||
Adjusted EBITDA related to discontinued operations
|
—
|
|
|
20
|
|
||
Other, net
|
4
|
|
|
40
|
|
||
Income from continuing operations before income tax (expense) benefit
|
1,407
|
|
|
804
|
|
||
Income tax (expense) benefit
|
(126
|
)
|
|
10
|
|
||
Income from continuing operations
|
1,281
|
|
|
814
|
|
||
Loss from discontinued operations
|
—
|
|
|
(237
|
)
|
||
Net income
|
$
|
1,281
|
|
|
$
|
577
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Assets:
|
|
|
|
||||
Intrastate transportation and storage
|
$
|
6,601
|
|
|
$
|
6,365
|
|
Interstate transportation and storage
|
15,161
|
|
|
15,081
|
|
||
Midstream
|
19,759
|
|
|
19,745
|
|
||
NGL and refined products transportation and services
|
19,185
|
|
|
18,267
|
|
||
Crude oil transportation and services
|
18,363
|
|
|
18,022
|
|
||
Investment in Sunoco LP
|
5,423
|
|
|
4,879
|
|
||
Investment in USAC
|
3,758
|
|
|
3,775
|
|
||
All other and eliminations
|
6,498
|
|
|
2,308
|
|
||
Total assets
|
$
|
94,748
|
|
|
$
|
88,442
|
|
16.
|
CONSOLIDATING GUARANTOR FINANCIAL INFORMATION
|
|
March 31, 2019
|
||||||||||||||||||
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated Partnership
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
516
|
|
|
$
|
—
|
|
|
$
|
516
|
|
All other current assets
|
22
|
|
|
57
|
|
|
7,056
|
|
|
(468
|
)
|
|
6,667
|
|
|||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
67,013
|
|
|
—
|
|
|
67,013
|
|
|||||
Investments in unconsolidated affiliates
|
52,099
|
|
|
13,723
|
|
|
2,647
|
|
|
(65,822
|
)
|
|
2,647
|
|
|||||
All other assets
|
5,240
|
|
|
75
|
|
|
12,590
|
|
|
—
|
|
|
17,905
|
|
|||||
Total assets
|
$
|
57,361
|
|
|
$
|
13,855
|
|
|
$
|
89,822
|
|
|
$
|
(66,290
|
)
|
|
$
|
94,748
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
(674
|
)
|
|
$
|
(3,222
|
)
|
|
$
|
11,410
|
|
|
$
|
(892
|
)
|
|
$
|
6,622
|
|
Non-current liabilities
|
30,644
|
|
|
7,604
|
|
|
13,595
|
|
|
—
|
|
|
51,843
|
|
|||||
Noncontrolling interest
|
—
|
|
|
—
|
|
|
8,044
|
|
|
—
|
|
|
8,044
|
|
|||||
Total partners’ capital
|
27,391
|
|
|
9,473
|
|
|
56,773
|
|
|
(65,398
|
)
|
|
28,239
|
|
|||||
Total liabilities and equity
|
$
|
57,361
|
|
|
$
|
13,855
|
|
|
$
|
89,822
|
|
|
$
|
(66,290
|
)
|
|
$
|
94,748
|
|
|
December 31, 2018
|
||||||||||||||||||
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated Partnership
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
418
|
|
|
$
|
—
|
|
|
$
|
418
|
|
All other current assets
|
5
|
|
|
57
|
|
|
7,074
|
|
|
(734
|
)
|
|
6,402
|
|
|||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
66,655
|
|
|
—
|
|
|
66,655
|
|
|||||
Investments in unconsolidated affiliates
|
51,876
|
|
|
13,090
|
|
|
2,636
|
|
|
(64,966
|
)
|
|
2,636
|
|
|||||
All other assets
|
12
|
|
|
75
|
|
|
12,244
|
|
|
—
|
|
|
12,331
|
|
|||||
Total assets
|
$
|
51,893
|
|
|
$
|
13,222
|
|
|
$
|
89,027
|
|
|
$
|
(65,700
|
)
|
|
$
|
88,442
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
(635
|
)
|
|
$
|
(3,315
|
)
|
|
$
|
14,469
|
|
|
$
|
(1,222
|
)
|
|
$
|
9,297
|
|
Non-current liabilities
|
24,787
|
|
|
7,605
|
|
|
10,132
|
|
|
—
|
|
|
42,524
|
|
|||||
Noncontrolling interest
|
—
|
|
|
—
|
|
|
7,903
|
|
|
—
|
|
|
7,903
|
|
|||||
Total partners’ capital
|
27,741
|
|
|
8,932
|
|
|
56,523
|
|
|
(64,478
|
)
|
|
28,718
|
|
|||||
Total liabilities and equity
|
$
|
51,893
|
|
|
$
|
13,222
|
|
|
$
|
89,027
|
|
|
$
|
(65,700
|
)
|
|
$
|
88,442
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated Partnership
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,121
|
|
|
$
|
—
|
|
|
$
|
13,121
|
|
Operating costs, expenses, and other
|
—
|
|
|
—
|
|
|
11,193
|
|
|
—
|
|
|
11,193
|
|
|||||
Operating income
|
—
|
|
|
—
|
|
|
1,928
|
|
|
—
|
|
|
1,928
|
|
|||||
Interest expense, net
|
(362
|
)
|
|
(66
|
)
|
|
(99
|
)
|
|
—
|
|
|
(527
|
)
|
|||||
Equity in earnings of unconsolidated affiliates
|
1,427
|
|
|
611
|
|
|
65
|
|
|
(2,038
|
)
|
|
65
|
|
|||||
Losses on extinguishments of debt
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Gains on interest rate derivatives
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(74
|
)
|
|||||
Other, net
|
21
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
17
|
|
|||||
Income before income tax expense
|
1,012
|
|
|
545
|
|
|
1,888
|
|
|
(2,038
|
)
|
|
1,407
|
|
|||||
Income tax expense
|
—
|
|
|
—
|
|
|
126
|
|
|
—
|
|
|
126
|
|
|||||
Net income
|
1,012
|
|
|
545
|
|
|
1,762
|
|
|
(2,038
|
)
|
|
1,281
|
|
|||||
Less: Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
256
|
|
|
—
|
|
|
256
|
|
|||||
Less: Net income attributable to redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
|||||
Net income attributable to partners
|
$
|
1,012
|
|
|
$
|
545
|
|
|
$
|
1,493
|
|
|
$
|
(2,038
|
)
|
|
$
|
1,012
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
Comprehensive income
|
1,012
|
|
|
545
|
|
|
1,770
|
|
|
(2,038
|
)
|
|
1,289
|
|
|||||
Comprehensive income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
256
|
|
|
—
|
|
|
256
|
|
|||||
Comprehensive income attributable to redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
|||||
Comprehensive income attributable to partners
|
$
|
1,012
|
|
|
$
|
545
|
|
|
$
|
1,501
|
|
|
$
|
(2,038
|
)
|
|
$
|
1,020
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated Partnership
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,882
|
|
|
$
|
—
|
|
|
$
|
11,882
|
|
Operating costs, expenses, and other
|
—
|
|
|
—
|
|
|
10,777
|
|
|
—
|
|
|
10,777
|
|
|||||
Operating income
|
—
|
|
|
—
|
|
|
1,105
|
|
|
—
|
|
|
1,105
|
|
|||||
Interest expense, net
|
(278
|
)
|
|
(40
|
)
|
|
(62
|
)
|
|
—
|
|
|
(380
|
)
|
|||||
Equity in earnings of unconsolidated affiliates
|
941
|
|
|
260
|
|
|
79
|
|
|
(1,201
|
)
|
|
79
|
|
|||||
Losses on extinguishments of debt
|
—
|
|
|
—
|
|
|
(109
|
)
|
|
—
|
|
|
(109
|
)
|
|||||
Gains on interest rate derivatives
|
52
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|||||
Other, net
|
—
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
57
|
|
|||||
Income from continuing operations before income tax benefit
|
715
|
|
|
220
|
|
|
1,070
|
|
|
(1,201
|
)
|
|
804
|
|
|||||
Income tax benefit
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||||
Net income from continuing operations
|
715
|
|
|
220
|
|
|
1,080
|
|
|
(1,201
|
)
|
|
814
|
|
|||||
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(237
|
)
|
|
—
|
|
|
(237
|
)
|
|||||
Net income
|
715
|
|
|
220
|
|
|
843
|
|
|
(1,201
|
)
|
|
577
|
|
|||||
Less: Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
|||||
Less: Net loss attributable to predecessor equity
|
—
|
|
|
—
|
|
|
(302
|
)
|
|
—
|
|
|
(302
|
)
|
|||||
Net income attributable to partners
|
$
|
715
|
|
|
$
|
220
|
|
|
$
|
981
|
|
|
$
|
(1,201
|
)
|
|
$
|
715
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Comprehensive income
|
715
|
|
|
220
|
|
|
844
|
|
|
(1,201
|
)
|
|
578
|
|
|||||
Comprehensive income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
|||||
Comprehensive loss attributable to predecessor equity
|
—
|
|
|
—
|
|
|
(302
|
)
|
|
—
|
|
|
(302
|
)
|
|||||
Comprehensive income attributable to partners
|
$
|
715
|
|
|
$
|
220
|
|
|
$
|
982
|
|
|
$
|
(1,201
|
)
|
|
$
|
716
|
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated Partnership
|
||||||||||
Cash flows provided by operating activities
|
$
|
1,026
|
|
|
$
|
314
|
|
|
$
|
1,184
|
|
|
$
|
(678
|
)
|
|
$
|
1,846
|
|
Cash flows provided by (used in) investing activities
|
(123
|
)
|
|
(314
|
)
|
|
(1,339
|
)
|
|
678
|
|
|
(1,098
|
)
|
|||||
Cash flows provided by (used in) financing activities
|
(903
|
)
|
|
—
|
|
|
253
|
|
|
—
|
|
|
(650
|
)
|
|||||
Change in cash
|
—
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
98
|
|
|||||
Cash at beginning of period
|
—
|
|
|
—
|
|
|
418
|
|
|
—
|
|
|
418
|
|
|||||
Cash at end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
516
|
|
|
$
|
—
|
|
|
$
|
516
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated Partnership
|
||||||||||
Cash flows provided by operating activities
|
$
|
1,147
|
|
|
$
|
434
|
|
|
$
|
2,475
|
|
|
$
|
(1,841
|
)
|
|
$
|
2,215
|
|
Cash flows used in investing activities
|
(1,554
|
)
|
|
(431
|
)
|
|
(1,557
|
)
|
|
1,841
|
|
|
(1,701
|
)
|
|||||
Cash flows provided by (used in) financing activities
|
407
|
|
|
—
|
|
|
(3,450
|
)
|
|
—
|
|
|
(3,043
|
)
|
|||||
Net increase in cash and cash equivalents of discontinued operations
|
—
|
|
|
—
|
|
|
2,740
|
|
|
—
|
|
|
2,740
|
|
|||||
Change in cash
|
—
|
|
|
3
|
|
|
208
|
|
|
—
|
|
|
211
|
|
|||||
Cash at beginning of period
|
—
|
|
|
(2
|
)
|
|
337
|
|
|
—
|
|
|
335
|
|
|||||
Cash at end of period
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
545
|
|
|
$
|
—
|
|
|
$
|
546
|
|
•
|
natural gas operations, including the following:
|
•
|
natural gas midstream and intrastate transportation and storage;
|
•
|
interstate natural gas transportation and storage; and
|
•
|
crude oil, NGL and refined products transportation, terminalling services and acquisition and marketing activities, as well as NGL storage and fractionation services.
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Segment Adjusted EBITDA:
|
|
|
|
|
|
||||||
Intrastate transportation and storage
|
$
|
252
|
|
|
$
|
192
|
|
|
$
|
60
|
|
Interstate transportation and storage
|
456
|
|
|
366
|
|
|
90
|
|
|||
Midstream
|
382
|
|
|
377
|
|
|
5
|
|
|||
NGL and refined products transportation and services
|
612
|
|
|
451
|
|
|
161
|
|
|||
Crude oil transportation and services
|
806
|
|
|
464
|
|
|
342
|
|
|||
Investment in Sunoco LP
|
153
|
|
|
109
|
|
|
44
|
|
|||
Investment in USAC
|
101
|
|
|
—
|
|
|
101
|
|
|||
All other
|
33
|
|
|
45
|
|
|
(12
|
)
|
|||
Total
|
2,795
|
|
|
2,004
|
|
|
791
|
|
|||
Depreciation, depletion and amortization
|
(771
|
)
|
|
(661
|
)
|
|
(110
|
)
|
|||
Interest expense, net
|
(527
|
)
|
|
(380
|
)
|
|
(147
|
)
|
|||
Impairment losses
|
(50
|
)
|
|
—
|
|
|
(50
|
)
|
|||
Gains (losses) on interest rate derivatives
|
(74
|
)
|
|
52
|
|
|
(126
|
)
|
|||
Non-cash compensation expense
|
(29
|
)
|
|
(23
|
)
|
|
(6
|
)
|
|||
Unrealized gains (losses) on commodity risk management activities
|
49
|
|
|
(87
|
)
|
|
136
|
|
|||
Losses on extinguishments of debt
|
(2
|
)
|
|
(109
|
)
|
|
107
|
|
|||
Inventory valuation adjustments
|
93
|
|
|
25
|
|
|
68
|
|
|||
Adjusted EBITDA related to unconsolidated affiliates
|
(146
|
)
|
|
(156
|
)
|
|
10
|
|
|||
Equity in earnings of unconsolidated affiliates
|
65
|
|
|
79
|
|
|
(14
|
)
|
|||
Adjusted EBITDA related to discontinued operations
|
—
|
|
|
20
|
|
|
(20
|
)
|
|||
Other, net
|
4
|
|
|
40
|
|
|
(36
|
)
|
|||
Income from continuing operations before income tax (expense) benefit
|
1,407
|
|
|
804
|
|
|
603
|
|
|||
Income tax (expense) benefit
|
(126
|
)
|
|
10
|
|
|
(136
|
)
|
|||
Income from continuing operations
|
1,281
|
|
|
814
|
|
|
467
|
|
|||
Loss from discontinued operations
|
—
|
|
|
(237
|
)
|
|
237
|
|
|||
Net income
|
$
|
1,281
|
|
|
$
|
577
|
|
|
$
|
704
|
|
•
|
an increase of
$110 million
recognized by the Partnership primarily related to
increases in long-term debt from ETO senior note issuances including the ET-ETO senior notes exchange in March 2019, higher interest rates on floating rate borrowings and a decrease of
$36 million
in capitalized interest due to the completion of major projects in 2018;
|
•
|
an increase of
$29 million
due to the consolidation of USAC beginning April 2, 2018, the date ET obtained control of USAC; and
|
•
|
an increase of
$8 million
recognized by Sunoco LP primarily
related to an increase in Sunoco LP’s senior note borrowings partially offset by lower credit facility borrowings.
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Equity in earnings of unconsolidated affiliates:
|
|
|
|
|
|
||||||
Citrus
|
$
|
32
|
|
|
$
|
27
|
|
|
$
|
5
|
|
FEP
|
14
|
|
|
14
|
|
|
—
|
|
|||
MEP
|
7
|
|
|
9
|
|
|
(2
|
)
|
|||
Other
|
12
|
|
|
29
|
|
|
(17
|
)
|
|||
Total equity in earnings of unconsolidated affiliates
|
$
|
65
|
|
|
$
|
79
|
|
|
$
|
(14
|
)
|
|
|
|
|
|
|
||||||
Adjusted EBITDA related to unconsolidated affiliates
(1)
:
|
|
|
|
|
|
||||||
Citrus
|
$
|
81
|
|
|
$
|
75
|
|
|
$
|
6
|
|
FEP
|
19
|
|
|
19
|
|
|
—
|
|
|||
MEP
|
19
|
|
|
22
|
|
|
(3
|
)
|
|||
Other
|
27
|
|
|
40
|
|
|
(13
|
)
|
|||
Total Adjusted EBITDA related to unconsolidated affiliates
|
$
|
146
|
|
|
$
|
156
|
|
|
$
|
(10
|
)
|
|
|
|
|
|
|
||||||
Distributions received from unconsolidated affiliates:
|
|
|
|
|
|
||||||
Citrus
|
$
|
35
|
|
|
$
|
46
|
|
|
$
|
(11
|
)
|
FEP
|
17
|
|
|
17
|
|
|
—
|
|
|||
MEP
|
11
|
|
|
13
|
|
|
(2
|
)
|
|||
Other
|
16
|
|
|
21
|
|
|
(5
|
)
|
|||
Total distributions received from unconsolidated affiliates
|
$
|
79
|
|
|
$
|
97
|
|
|
$
|
(18
|
)
|
(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
. These amounts represent our proportionate share of the Adjusted EBITDA of our unconsolidated affiliates. Amounts reflected are calculated consistently with our definition of Adjusted EBITDA.
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Segment Margin:
|
|
|
|
||||
Intrastate transportation and storage
|
$
|
284
|
|
|
$
|
171
|
|
Interstate transportation and storage
|
498
|
|
|
365
|
|
||
Midstream
|
577
|
|
|
553
|
|
||
NGL and refined products transportation and services
|
705
|
|
|
600
|
|
||
Crude oil transportation and services
|
1,086
|
|
|
568
|
|
||
Investment in Sunoco LP
|
370
|
|
|
296
|
|
||
Investment in USAC
|
149
|
|
|
—
|
|
||
All other
|
42
|
|
|
95
|
|
||
Intersegment eliminations
|
(5
|
)
|
|
(11
|
)
|
||
Total segment margin
|
3,706
|
|
|
2,637
|
|
||
|
|
|
|
||||
Less:
|
|
|
|
||||
Operating expenses
|
808
|
|
|
724
|
|
||
Depreciation, depletion and amortization
|
771
|
|
|
661
|
|
||
Selling, general and administrative
|
149
|
|
|
147
|
|
||
Impairment losses
|
50
|
|
|
—
|
|
||
Operating income
|
$
|
1,928
|
|
|
$
|
1,105
|
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Natural gas transported (BBtu/d)
|
11,982
|
|
|
9,271
|
|
|
2,711
|
|
|||
Withdrawals from storage natural gas inventory (BBtu)
|
—
|
|
|
17,703
|
|
|
(17,703
|
)
|
|||
Revenues
|
$
|
856
|
|
|
$
|
875
|
|
|
$
|
(19
|
)
|
Cost of products sold
|
572
|
|
|
704
|
|
|
(132
|
)
|
|||
Segment margin
|
284
|
|
|
171
|
|
|
113
|
|
|||
Unrealized losses on commodity risk management activities
|
10
|
|
|
53
|
|
|
(43
|
)
|
|||
Operating expenses, excluding non-cash compensation expense
|
(42
|
)
|
|
(39
|
)
|
|
(3
|
)
|
|||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(6
|
)
|
|
(6
|
)
|
|
—
|
|
|||
Adjusted EBITDA related to unconsolidated affiliates
|
6
|
|
|
13
|
|
|
(7
|
)
|
|||
Segment Adjusted EBITDA
|
$
|
252
|
|
|
$
|
192
|
|
|
$
|
60
|
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Transportation fees
|
$
|
154
|
|
|
$
|
117
|
|
|
$
|
37
|
|
Natural gas sales and other (excluding unrealized gains and losses)
|
120
|
|
|
91
|
|
|
29
|
|
|||
Retained fuel revenues (excluding unrealized gains and losses)
|
11
|
|
|
13
|
|
|
(2
|
)
|
|||
Storage margin (excluding unrealized gains and losses)
|
9
|
|
|
3
|
|
|
6
|
|
|||
Unrealized losses on commodity risk management activities
|
(10
|
)
|
|
(53
|
)
|
|
43
|
|
|||
Total segment margin
|
$
|
284
|
|
|
$
|
171
|
|
|
$
|
113
|
|
•
|
an increase of
$29 million
in realized natural gas sales and other due to higher realized gains from pipeline optimization activity;
|
•
|
an increase of
$13 million
in transportation fees, excluding the impact of consolidating RIGS as discussed below, primarily due to new contracts, as well as the impact of the Red Bluff Express pipeline coming online in May 2018;
|
•
|
a net increase of
$11 million
due to the consolidation of RIGS beginning in April 2018, resulting in increases in transportation fees, retained fuel revenues and operating expenses of
$24 million
,
$2 million
and
$6 million
, respectively, and a decrease of
$9 million
in Adjusted EBITDA related to unconsolidated affiliates; and
|
•
|
an increase of
$6 million
in realized storage margin primarily due to a negative adjustment to the Bammel storage inventory of
$25 million
in 2018, partially offset by a
$13 million
decrease due to lower physical withdrawals and a
$6 million
decrease in realized derivative gains.
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Natural gas transported (BBtu/d)
|
11,532
|
|
|
8,204
|
|
|
3,328
|
|
|||
Natural gas sold (BBtu/d)
|
19
|
|
|
17
|
|
|
2
|
|
|||
Revenues
|
$
|
498
|
|
|
$
|
365
|
|
|
$
|
133
|
|
Operating expenses, excluding non-cash compensation, amortization and accretion expenses
|
(146
|
)
|
|
(99
|
)
|
|
(47
|
)
|
|||
Selling, general and administrative expenses, excluding non-cash compensation, amortization and accretion expenses
|
(14
|
)
|
|
(18
|
)
|
|
4
|
|
|||
Adjusted EBITDA related to unconsolidated affiliates
|
119
|
|
|
116
|
|
|
3
|
|
|||
Other
|
(1
|
)
|
|
2
|
|
|
(3
|
)
|
|||
Segment Adjusted EBITDA
|
$
|
456
|
|
|
$
|
366
|
|
|
$
|
90
|
|
•
|
an increase of
$133 million
in revenues primarily due to an increase of
$106 million
on contracted capacity from additional connections and compression on the Rover pipeline and an increase of
$21 million
due to higher reservation and usage revenues from capacity sold at higher rates on the Transwestern, Panhandle and Trunkline pipelines;
|
•
|
a decrease of
$4 million
in selling, general and administrative expenses due to lower excise taxes and lower employee costs; and
|
•
|
an increase of
$3 million
in Adjusted EBITDA related to unconsolidated affiliates primarily due to sales of additional capacity on Citrus; partially offset by
|
•
|
an increase of
$47 million
in operating expenses primarily due to a
$31 million
increase in ad valorem taxes and a
$16 million
increase in third-party transportation expense due to the initiation of full service on the Rover pipeline.
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Gathered volumes (BBtu/d)
|
12,718
|
|
|
11,306
|
|
|
1,412
|
|
|||
NGLs produced (MBbls/d)
|
563
|
|
|
503
|
|
|
60
|
|
|||
Equity NGLs (MBbls/d)
|
35
|
|
|
28
|
|
|
7
|
|
|||
Revenues
|
$
|
1,718
|
|
|
$
|
1,614
|
|
|
$
|
104
|
|
Cost of products sold
|
1,141
|
|
|
1,061
|
|
|
80
|
|
|||
Segment margin
|
577
|
|
|
553
|
|
|
24
|
|
|||
Operating expenses, excluding non-cash compensation expense
|
(183
|
)
|
|
(164
|
)
|
|
(19
|
)
|
|||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(19
|
)
|
|
(20
|
)
|
|
1
|
|
|||
Adjusted EBITDA related to unconsolidated affiliates
|
6
|
|
|
7
|
|
|
(1
|
)
|
|||
Other
|
1
|
|
|
1
|
|
|
—
|
|
|||
Segment Adjusted EBITDA
|
$
|
382
|
|
|
$
|
377
|
|
|
$
|
5
|
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Gathering and processing fee-based revenues
|
$
|
484
|
|
|
$
|
421
|
|
|
$
|
63
|
|
Non-fee-based contracts and processing
|
93
|
|
|
132
|
|
|
(39
|
)
|
|||
Total segment margin
|
$
|
577
|
|
|
$
|
553
|
|
|
$
|
24
|
|
•
|
an increase of
$63 million
in fee-based margin due to volume growth in the North Texas, Permian and Northeast regions, offset by declines in the South Texas and midcontinent/Panhandle regions;
|
•
|
an increase of
$6 million
in non-fee-based margin due to higher throughput in the North Texas and Permian regions; and
|
•
|
a decrease of
$1 million
in selling, general and administrative expenses due to lower allocated overhead; partially offset by
|
•
|
a decrease of
$45 million
in non-fee-based margin due to a
$37 million
decrease from lower NGL prices and an
$8 million
decrease from lower gas prices; and
|
•
|
an increase of
$19 million
in operating expenses due to increases of
$10 million
in outside services,
$4 million
in employee costs,
$3 million
in materials and
$2 million
in office expenses.
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
NGL transportation volumes (MBbls/d)
|
1,178
|
|
|
936
|
|
|
242
|
|
|||
Refined products transportation volumes (MBbls/d)
|
617
|
|
|
620
|
|
|
(3
|
)
|
|||
NGL and refined products terminal volumes (MBbls/d)
|
879
|
|
|
702
|
|
|
177
|
|
|||
NGL fractionation volumes (MBbls/d)
|
678
|
|
|
472
|
|
|
206
|
|
|||
Revenues
|
$
|
3,031
|
|
|
$
|
2,546
|
|
|
$
|
485
|
|
Cost of products sold
|
2,326
|
|
|
1,946
|
|
|
380
|
|
|||
Segment margin
|
705
|
|
|
600
|
|
|
105
|
|
|||
Unrealized (gains) losses on commodity risk management activities
|
57
|
|
|
(13
|
)
|
|
70
|
|
|||
Operating expenses, excluding non-cash compensation expense
|
(149
|
)
|
|
(139
|
)
|
|
(10
|
)
|
|||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(19
|
)
|
|
(18
|
)
|
|
(1
|
)
|
|||
Adjusted EBITDA related to unconsolidated affiliates
|
18
|
|
|
21
|
|
|
(3
|
)
|
|||
Segment Adjusted EBITDA
|
$
|
612
|
|
|
$
|
451
|
|
|
$
|
161
|
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Transportation margin
|
$
|
363
|
|
|
$
|
266
|
|
|
$
|
97
|
|
Fractionators and refinery services margin
|
186
|
|
|
134
|
|
|
52
|
|
|||
Terminal services margin
|
117
|
|
|
94
|
|
|
23
|
|
|||
Storage margin
|
56
|
|
|
56
|
|
|
—
|
|
|||
Marketing margin
|
40
|
|
|
37
|
|
|
3
|
|
|||
Unrealized gains (losses) on commodity risk management activities
|
(57
|
)
|
|
13
|
|
|
(70
|
)
|
|||
Total segment margin
|
$
|
705
|
|
|
$
|
600
|
|
|
$
|
105
|
|
•
|
an increase of
$97 million
in transportation margin primarily due to a
$68 million
increase resulting from higher volumes received from the Permian region on our Texas NGL pipelines, a
$28 million
increase due to the ramp-up of our Mariner East 2 project which commenced operations in late 2018 and a
$7 million
increase due to higher throughput volumes from the Barnett region. These increases were partially offset by an
$8 million
decrease resulting from Mariner East 1 system downtime;
|
•
|
an increase of
$52 million
in fractionation and refinery services margin primarily due to a
$59 million
increase resulting from the commissioning of our fifth and sixth fractionators in July 2018 and February 2019, respectively, and higher NGL volumes from the Permian region feeding our Mont Belvieu fractionation facility. This increase was partially offset by a
$4 million
decrease resulting from a reclassification between our fractionation and storage margins and a
$3 million
decrease from unplanned downtime at a vendor facility which reduced the supply to our o-grade processing facility
;
|
•
|
an increase of
$23 million
in terminal services margin primarily due to a
$32 million
increase from the ramp-up of our Mariner East 2 project which commenced operations in late 2018 and a
$2 million
increase due to higher throughput at our refined products terminals in the Northeast. These increases were partially offset by a
$11 million
decrease related to Mariner East 1 system downtime, which resulted in lower volumes delivered to our Marcus Hook terminal facility; and
|
•
|
an increase of
$3 million
in marketing margin due to a
$6 million
increase from the timing of optimization gains from our Mont Belvieu marketing operations, partially offset by a
$3 million
decrease from our gasoline optimization and NGL marketing operations in the Northeast; partially offset by
|
•
|
an increase of
$10 million
in operating expenses primarily due to increases of
$4 million
in employee costs,
$2 million
in materials costs,
$2 million
in management fees and
$2 million
in utilities costs.
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Crude transportation volumes (MBbls/d)
|
4,522
|
|
|
3,827
|
|
|
695
|
|
|||
Crude terminals volumes (MBbls/d)
|
2,086
|
|
|
1,940
|
|
|
146
|
|
|||
Revenues
|
$
|
4,186
|
|
|
$
|
3,745
|
|
|
$
|
441
|
|
Cost of products sold
|
3,100
|
|
|
3,177
|
|
|
(77
|
)
|
|||
Segment margin
|
1,086
|
|
|
568
|
|
|
518
|
|
|||
Unrealized (gains) losses on commodity risk management activities
|
(109
|
)
|
|
43
|
|
|
(152
|
)
|
|||
Operating expenses, excluding non-cash compensation expense
|
(150
|
)
|
|
(127
|
)
|
|
(23
|
)
|
|||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(20
|
)
|
|
(22
|
)
|
|
2
|
|
|||
Adjusted EBITDA related to unconsolidated affiliates
|
(2
|
)
|
|
2
|
|
|
(4
|
)
|
|||
Other
|
1
|
|
|
—
|
|
|
1
|
|
|||
Segment Adjusted EBITDA
|
$
|
806
|
|
|
$
|
464
|
|
|
$
|
342
|
|
•
|
an increase of
$366 million
in segment margin (excluding unrealized gains and losses on commodity risk management activities) primarily due to a
$142 million
increase resulting from higher throughput on our Texas crude pipeline system primarily due to increased production from Permian producers, a
$91 million
favorable variance resulting from increased throughput on the Bakken Pipeline, a
$124 million
increase (excluding a net change of
$152 million
in unrealized gains and losses on commodity risk management activities) from our crude oil acquisition and marketing business primarily resulting from improved basis differentials between the Permian and Bakken producing regions to our Nederland terminal on the Texas Gulf Coast, as well as a
$9 million
increase primarily from higher throughput, ship loading and tank rental fees at our Nederland terminal; and
|
•
|
a decrease of
$2 million
in selling, general and administrative expenses primarily due to a
$2 million
decrease in overhead allocations and a
$1 million
decrease in management fees, partially offset by a
$1 million
increase in insurance costs; partially offset by
|
•
|
an increase of
$23 million
in operating expenses primarily due to a
$30 million
increase in throughput related costs on existing assets, partially offset by a
$7 million
decrease in ad valorem taxes and management fees; and
|
•
|
a decrease of
$4 million
in Adjusted EBITDA related to unconsolidated affiliates due to lower margin from jet fuel sales by our joint ventures.
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Revenues
|
$
|
3,692
|
|
|
$
|
3,749
|
|
|
$
|
(57
|
)
|
Cost of products sold
|
3,322
|
|
|
3,453
|
|
|
$
|
(131
|
)
|
||
Segment margin
|
370
|
|
|
296
|
|
|
74
|
|
|||
Unrealized gains on commodity risk management activities
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
|||
Operating expenses, excluding non-cash compensation expense
|
(98
|
)
|
|
(113
|
)
|
|
15
|
|
|||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(24
|
)
|
|
(32
|
)
|
|
8
|
|
|||
Inventory valuation adjustments
|
(93
|
)
|
|
(25
|
)
|
|
(68
|
)
|
|||
Adjusted EBITDA related to discontinued operations
|
—
|
|
|
(20
|
)
|
|
20
|
|
|||
Other
|
4
|
|
|
3
|
|
|
1
|
|
|||
Segment Adjusted EBITDA
|
$
|
153
|
|
|
$
|
109
|
|
|
$
|
44
|
|
•
|
an aggregate decrease of
$23 million
in expenses primarily due to the conversion of 207 retail sites to commission agent sites in April 2018; and
|
•
|
an increase of
$20 million
in Adjusted EBITDA from discontinued operations due to Sunoco LP’s retail divestment in January 2018.
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Revenues
|
$
|
171
|
|
|
$
|
—
|
|
|
$
|
171
|
|
Cost of products sold
|
22
|
|
|
—
|
|
|
22
|
|
|||
Segment margin
|
149
|
|
|
—
|
|
|
149
|
|
|||
Operating expenses, excluding non-cash compensation expense
|
(35
|
)
|
|
—
|
|
|
(35
|
)
|
|||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
|||
Segment Adjusted EBITDA
|
$
|
101
|
|
|
$
|
—
|
|
|
$
|
101
|
|
|
Three Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Revenues
|
$
|
497
|
|
|
$
|
571
|
|
|
$
|
(74
|
)
|
Cost of products sold
|
455
|
|
|
476
|
|
|
(21
|
)
|
|||
Segment margin
|
42
|
|
|
95
|
|
|
(53
|
)
|
|||
Unrealized (gains) losses on commodity risk management activities
|
(1
|
)
|
|
4
|
|
|
(5
|
)
|
|||
Operating expenses, excluding non-cash compensation expense
|
(7
|
)
|
|
(31
|
)
|
|
24
|
|
|||
Selling, general and administrative expenses, excluding non-cash compensation expense
|
(13
|
)
|
|
(18
|
)
|
|
5
|
|
|||
Adjusted EBITDA related to unconsolidated affiliates
|
(1
|
)
|
|
(3
|
)
|
|
2
|
|
|||
Other and eliminations
|
13
|
|
|
(2
|
)
|
|
15
|
|
|||
Segment Adjusted EBITDA
|
$
|
33
|
|
|
$
|
45
|
|
|
$
|
(12
|
)
|
•
|
our natural gas marketing operations;
|
•
|
our wholly-owned natural gas compression operations;
|
•
|
a non-controlling interest in PES. Prior to PES’s reorganization in August 2018, ETO’s
33%
interest in PES was reflected as an unconsolidated affiliate; subsequent the August 2018 reorganization, ETO holds an approximately
8%
interest in PES and no longer reflects PES as an affiliate; and
|
•
|
our investment in coal handling facilities.
|
•
|
a decrease of
$36 million
due to the contribution of CDM to USAC in April 2018, subsequent to which CDM is reflected in the Investment in USAC segment; partially offset by
|
•
|
an increase of
$11 million
due to our investment in PES;
|
•
|
an increase of
$7 million
due to an increase in power trading gains; and
|
•
|
an increase of
$3 million
from residue gas sales.
|
|
Growth
|
|
Maintenance
|
||||||||||||
|
Low
|
|
High
|
|
Low
|
|
High
|
||||||||
Intrastate transportation and storage
|
$
|
150
|
|
|
$
|
200
|
|
|
$
|
35
|
|
|
$
|
40
|
|
Interstate transportation and storage
(1)
|
400
|
|
|
425
|
|
|
135
|
|
|
140
|
|
||||
Midstream
|
800
|
|
|
900
|
|
|
115
|
|
|
120
|
|
||||
NGL and refined products transportation and services
|
3,000
|
|
|
3,100
|
|
|
90
|
|
|
100
|
|
||||
Crude oil transportation and services
(1)
|
350
|
|
|
425
|
|
|
100
|
|
|
110
|
|
||||
All other (including eliminations)
|
125
|
|
|
150
|
|
|
50
|
|
|
55
|
|
||||
Total capital expenditures
|
$
|
4,825
|
|
|
$
|
5,200
|
|
|
$
|
525
|
|
|
$
|
565
|
|
(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
(1)
|
$
|
(72
|
)
|
|
$
|
13
|
|
|
$
|
(59
|
)
|
Interstate transportation and storage
|
35
|
|
|
14
|
|
|
49
|
|
|||
Midstream
|
171
|
|
|
19
|
|
|
190
|
|
|||
NGL and refined products transportation and services
|
421
|
|
|
9
|
|
|
430
|
|
|||
Crude oil transportation and services
|
53
|
|
|
20
|
|
|
73
|
|
|||
Investment in Sunoco LP
|
22
|
|
|
4
|
|
|
26
|
|
|||
Investment in USAC
|
33
|
|
|
7
|
|
|
40
|
|
|||
All other (including eliminations)
|
45
|
|
|
6
|
|
|
51
|
|
|||
Total capital expenditures
|
$
|
708
|
|
|
$
|
92
|
|
|
$
|
800
|
|
(1)
|
For the
three months ended March 31,
2019
, growth capital expenditures for the intrastate transportation and storage segment reflect the proceeds received from the sale of a noncontrolling interest in the Red Bluff Express pipeline, which was based on capital expenditures from prior periods.
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
ETO Senior Notes
(1)
|
$
|
36,560
|
|
|
$
|
28,755
|
|
Transwestern Senior Notes
|
575
|
|
|
575
|
|
||
Panhandle Senior Notes
|
385
|
|
|
385
|
|
||
Bakken Senior Notes
|
2,500
|
|
|
—
|
|
||
Sunoco LP Senior Notes and lease-related obligations
|
2,913
|
|
|
2,307
|
|
||
USAC Senior Notes
|
1,475
|
|
|
725
|
|
||
Credit facilities and commercial paper:
|
|
|
|
||||
ETO $5.00 billion Revolving Credit Facility due December 2023
(2)
|
1,760
|
|
|
3,694
|
|
||
Bakken Project $2.50 billion Credit Facility due August 2019
|
—
|
|
|
2,500
|
|
||
Sunoco LP $1.50 billion Revolving Credit Facility due July 2023
|
150
|
|
|
700
|
|
||
USAC $1.60 billion Revolving Credit Facility due April 2023
|
361
|
|
|
1,050
|
|
||
Other long-term debt
|
5
|
|
|
7
|
|
||
Unamortized premiums, net of discounts and fair value adjustments
|
11
|
|
|
31
|
|
||
Deferred debt issuance costs
|
(297
|
)
|
|
(221
|
)
|
||
Total debt
|
46,398
|
|
|
40,508
|
|
||
Less: current maturities of long-term debt
|
157
|
|
|
2,655
|
|
||
Long-term debt, less current maturities
|
$
|
46,241
|
|
|
$
|
37,853
|
|
(1)
|
The increase in ETO Senior Notes during
three months ended
March 31, 2019
includes
$4.21 billion
issued in connection with the ET-ETO senior notes exchange and
$4.00 billion
issued in the January 2019 senior notes offering, both of which are discussed below. The
March 31, 2019
balance also includes
$250 million
aggregate principal amount of
5.50%
senior notes due February 15, 2020
that was classified as long-term as of
March 31, 2019
as management has the intent and ability to refinance the borrowing on a long-term basis.
|
(2)
|
Includes
$1.76 billion
and
$2.34 billion
of commercial paper outstanding at
March 31, 2019
and
December 31, 2018
, respectively.
|
•
|
$1.13 billion
aggregate principal amount of
7.50%
senior notes due 2020
;
|
•
|
$993 million
aggregate principal amount of
4.25%
senior notes due 2023
;
|
•
|
$1.13 billion
aggregate principal amount of
5.875%
senior notes due 2024
; and
|
•
|
$956 million
aggregate principal amount of
5.50%
senior notes due 2027
.
|
•
|
$750 million
aggregate principal amount of
4.50%
senior notes due 2024
;
|
•
|
$1.50 billion
aggregate principal amount of
5.25%
senior notes due 2029
; and
|
•
|
$1.75 billion
aggregate principal amount of
6.25%
senior notes due 2049
.
|
•
|
ETO’s
$400 million
aggregate principal amount of
9.70%
senior notes due March 15, 2019
;
|
•
|
ETO’s
$450 million
aggregate principal amount of
9.00%
senior notes due April 15, 2019
; and
|
•
|
Panhandle’s
$150 million
aggregate principal amount of
8.125%
senior notes due June 1, 2019
.
|
•
|
$650 million
aggregate principal amount of
3.625%
senior notes due 2022
;
|
•
|
$1.00 billion
aggregate principal amount of
3.90%
senior notes due 2024
; and
|
•
|
$850 million
aggregate principal amount of
4.625%
senior notes due 2029
.
|
Period Ended
|
|
Record Date
|
|
Payment Date
|
|
Series A
(1)
|
|
Series B
(1)
|
|
Series C
|
|
Series D
|
||||||||
December 31, 2018
|
|
February 1, 2019
|
|
February 15, 2019
|
|
$
|
31.2500
|
|
|
$
|
33.1250
|
|
|
$
|
0.4609
|
|
|
$
|
0.4766
|
|
March 31, 2019
|
|
May 1, 2019
|
|
May 15, 2019
|
|
—
|
|
|
—
|
|
|
0.4609
|
|
|
0.4766
|
|
Quarter Ended
|
|
Record Date
|
|
Payment Date
|
|
Rate
|
||
December 31, 2018
|
|
February 6, 2019
|
|
February 14, 2019
|
|
$
|
0.8255
|
|
March 31, 2019
|
|
May 7, 2019
|
|
May 15, 2019
|
|
0.8255
|
|
Quarter Ended
|
|
Record Date
|
|
Payment Date
|
|
Rate
|
||
December 31, 2018
|
|
January 28, 2019
|
|
February 8, 2019
|
|
$
|
0.5250
|
|
March 31, 2019
|
|
April 29, 2019
|
|
May 10, 2019
|
|
0.5250
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||
|
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):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed Swaps/Futures
|
610
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
468
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Basis Swaps IFERC/NYMEX
(1)
|
2,595
|
|
|
2
|
|
|
—
|
|
|
16,845
|
|
|
7
|
|
|
1
|
|
||||
Options – Puts
|
10,000
|
|
|
—
|
|
|
—
|
|
|
10,000
|
|
|
—
|
|
|
—
|
|
||||
Power (Megawatt):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Forwards
|
2,554,800
|
|
|
9
|
|
|
6
|
|
|
3,141,520
|
|
|
6
|
|
|
8
|
|
||||
Futures
|
14,776
|
|
|
1
|
|
|
—
|
|
|
56,656
|
|
|
—
|
|
|
—
|
|
||||
Options – Puts
|
(144,611
|
)
|
|
—
|
|
|
—
|
|
|
18,400
|
|
|
—
|
|
|
—
|
|
||||
Options – Calls
|
391,740
|
|
|
—
|
|
|
—
|
|
|
284,800
|
|
|
1
|
|
|
—
|
|
||||
(Non-Trading)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural Gas (BBtu):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basis Swaps IFERC/NYMEX
|
(18,250
|
)
|
|
(45
|
)
|
|
10
|
|
|
(30,228
|
)
|
|
(52
|
)
|
|
13
|
|
||||
Swing Swaps IFERC
|
39,685
|
|
|
(1
|
)
|
|
1
|
|
|
54,158
|
|
|
12
|
|
|
—
|
|
||||
Fixed Swaps/Futures
|
80
|
|
|
(2
|
)
|
|
—
|
|
|
(1,068
|
)
|
|
19
|
|
|
1
|
|
||||
Forward Physical Contracts
|
(27,096
|
)
|
|
5
|
|
|
7
|
|
|
(123,254
|
)
|
|
(1
|
)
|
|
32
|
|
||||
NGL (MBbls) – Forwards/Swaps
|
(857
|
)
|
|
7
|
|
|
14
|
|
|
(2,135
|
)
|
|
67
|
|
|
67
|
|
||||
Crude (MBbls) – Forwards/Swaps
|
13,832
|
|
|
50
|
|
|
14
|
|
|
20,888
|
|
|
(60
|
)
|
|
29
|
|
||||
Refined Products (MBbls) – Futures
|
(592
|
)
|
|
1
|
|
|
4
|
|
|
(1,403
|
)
|
|
(8
|
)
|
|
6
|
|
||||
Corn (thousand bushels)
|
(2,070
|
)
|
|
—
|
|
|
—
|
|
|
(1,920
|
)
|
|
—
|
|
|
1
|
|
||||
Fair Value Hedging Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Non-Trading)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural Gas (BBtu):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basis Swaps IFERC/NYMEX
|
(30,958
|
)
|
|
2
|
|
|
—
|
|
|
(17,445
|
)
|
|
(4
|
)
|
|
—
|
|
||||
Fixed Swaps/Futures
|
(30,958
|
)
|
|
—
|
|
|
9
|
|
|
(17,445
|
)
|
|
(10
|
)
|
|
6
|
|
(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
|
||||||
March 31, 2019
|
|
December 31, 2018
|
||||||||
July 2019
(2)
|
|
Forward-starting to pay a fixed rate of 3.56% and receive a floating rate
|
|
$
|
400
|
|
|
$
|
400
|
|
July 2020
(2)
|
|
Forward-starting to pay a fixed rate of 3.52% and receive a floating rate
|
|
400
|
|
|
400
|
|
||
July 2021
(2)
|
|
Forward-starting to pay a fixed rate of 3.55% and receive a floating rate
|
|
400
|
|
|
400
|
|
||
March 2019
|
|
Pay a floating rate and receive a fixed rate of 1.42%
|
|
—
|
|
|
300
|
|
(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.
|
Exhibit Number
|
|
Description
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
101.INS*
|
|
XBRL Instance Document
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
|
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:
|
May 9, 2019
|
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.
|
I have reviewed this quarterly report on Form 10-Q of Energy Transfer Operating, L.P.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Kelcy L. Warren
|
Kelcy L. Warren
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Energy Transfer Operating, L.P.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Thomas E. Long
|
Thomas E. Long
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.
|
/s/ Kelcy L. Warren
|
Kelcy L. Warren
|
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.
|
/s/ Thomas E. Long
|
Thomas E. Long
|
Chief Financial Officer
|