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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-32740

ENERGY TRANSFER LP

(Exact name of registrant as specified in its charter)


Delaware						30-0108820
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

8111 Westchester Drive, Suite 600, Dallas, Texas 75225

(Address of principal executive offices) (zip code)

(214) 981-0700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Units

New York Stock Exchange

7.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units

ETprC

New York Stock Exchange

7.625% Series D Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units

ETprD

New York Stock Exchange

7.600% Series E Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units

ETprE

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

At April 28, 2023, the registrant had 3,096,774,774 Common Units outstanding.

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FORM 10-Q

ENERGY TRANSFER LP AND SUBSIDIARIES

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PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (Unaudited)

Consolidated Balance Sheets			5

Consolidated Statements of Operations			7

Consolidated Statements of Comprehensive Income			8

Consolidated Statements of Equity			9

Consolidated Statements of Cash Flows			10

Notes to Consolidated Financial Statements			11

1. Organization and Basis of Presentation			11

2. Acquisitions			11

3. Cash and Cash Equivalents			11

4. Inventories			12

5. Fair Value Measurements			12

6. Net Income Per Common Unit			15

7. Debt Obligations			15

8. Redeemable Noncontrolling Interests			16

9. Equity			16

10. Regulatory Matters, Commitments, Contingencies and Environmental Liabilities			18

11. Revenue			27

12. Derivative Assets and Liabilities			28

13. Reportable Segments			32

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			36

Recent Developments			36

Results of Operations			38

Liquidity and Capital Resources			49

Cash Distributions			52



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			56

ITEM 4. CONTROLS AND PROCEDURES			57

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS			58

ITEM 1A. RISK FACTORS			58









ITEM 6. EXHIBITS			58

SIGNATURE			60

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Definitions

References to the “Partnership” or “Energy Transfer” refer to Energy Transfer LP. In addition, the following is a list of certain acronyms and terms used throughout this document:


			/d						per day





			AOCI						accumulated other comprehensive income







			BBtu						billion British thermal units





































			Citrus						Citrus, LLC, a 50/50 joint venture which owns Florida Gas Transmission Company, LLC, which owns the Florida Gas Transmission Pipeline

			Dakota Access						Dakota Access, LLC, a non-wholly-owned subsidiary of Energy Transfer and/or Dakota Access Pipeline





			Energy Transfer Canada						Energy Transfer Canada ULC, a non-wholly-owned subsidiary of Energy Transfer until its sale in August 2022

			Energy Transfer Preferred Units						Collectively, 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, Series G Preferred Units and Series H Preferred Units

			Energy Transfer R&M						Energy Transfer (R&M), LLC (formerly Sunoco (R&M), LLC)




			ETC Sunoco						ETC Sunoco Holdings LLC (formerly Sunoco, Inc.), a wholly-owned subsidiary of Energy Transfer



			ETO						Energy Transfer Operating, L.P., formerly a non-wholly-owned subsidiary of Energy Transfer until its merger into the Partnership in April 2021



			Exchange Act						Securities Exchange Act of 1934, as amended

			Explorer						Explorer Pipeline Company







			FERC						Federal Energy Regulatory Commission

			GAAP						accounting principles generally accepted in the United States of America















			General Partner						LE GP, LLC, the general partner of Energy Transfer

			HFOTCO						HFOTCO LLC, a wholly-owned subsidiary of Energy Transfer which owns the Houston Terminal



			IFERC						Inside FERC’s Gas Market Report

			LIBOR						London Interbank Offered Rate















			MBbls						thousand barrels

			MEP						Midcontinent Express Pipeline LLC









			NGL						natural gas liquid, such as propane, butane and natural gasoline





			NYMEX						New York Mercantile Exchange





			OTC						over-the-counter

			Panhandle						Panhandle Eastern Pipe Line Company, LP, a wholly-owned subsidiary of Energy Transfer and/or Panhandle Eastern Pipe Line



			Partnership Agreement						Energy Transfer’s Third Amended and Restated Agreement of Limited Partnership, as amended to date

			PHMSA						Pipeline and Hazardous Materials Safety Administration





























			Rover						Rover Pipeline LLC, a non-wholly-owned subsidiary of Energy Transfer and/or Rover Pipeline

















			SEC						Securities and Exchange Commission

			Series A Preferred Units						6.250% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units

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			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

			Series F Preferred Units						6.750% Series F Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units

			Series G Preferred Units						7.125% Series G Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units

			Series H Preferred Units						6.500% Series H Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units





















			SOFR						Secured overnight financing rate

			SPLP						Sunoco Pipeline L.P., a wholly-owned subsidiary of Energy Transfer















			Transwestern						Transwestern Pipeline Company, LLC, a wholly-owned subsidiary of Energy Transfer and/or Transwestern Pipeline



			USAC						USA Compression Partners, LP, a publicly traded partnership and consolidated subsidiary of Energy Transfer

			White Cliffs						White Cliffs Pipeline, L.L.C.

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ENERGY TRANSFER LP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

(unaudited)


	March 31, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	330	$	257
Accounts receivable, net	8,269		8,466
Accounts receivable from related companies	108		93
Inventories	2,047		2,461
Income taxes receivable	64		68
Derivative assets	6		10
Other current assets	546		726

Total current assets	11,370		12,081

Property, plant and equipment	106,643		105,996
Accumulated depreciation and depletion	(26,639)		(25,685)
Property, plant and equipment, net	80,004		80,311

Investments in unconsolidated affiliates	2,861		2,893

Lease right-of-use assets, net	813		819


Other non-current assets, net	1,585		1,558
Intangible assets, net	5,322		5,415
Goodwill	2,566		2,566

Total assets	$	104,521	$	105,643

The accompanying notes are an integral part of these consolidated financial statements.

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ENERGY TRANSFER LP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (continued)

(Dollars in million)

(unaudited)


	March 31, 2023		December 31, 2022
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	6,934	$	6,952
Accounts payable to related companies	9		17
Derivative liabilities	4		23

Operating lease current liabilities	45		45
Accrued and other current liabilities	3,168		3,329
Current maturities of long-term debt	2		2

Total current liabilities	10,162		10,368

Long-term debt, less current maturities	47,229		48,260

Non-current derivative liabilities	43		23
Non-current operating lease liabilities	791		798
Deferred income taxes	3,759		3,701
Other non-current liabilities	1,374		1,341


Commitments and contingencies
Redeemable noncontrolling interests	494		493

Equity:
Limited Partners:
Preferred Unitholders	6,080		6,051
Common Unitholders	27,057		26,960
General Partner	(2)		(2)
Accumulated other comprehensive income	13		16
Total partners’ capital	33,148		33,025
Noncontrolling interests	7,521		7,634
Total equity	40,669		40,659
Total liabilities and equity	$	104,521	$	105,643

The accompanying notes are an integral part of these consolidated financial statements.

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ENERGY TRANSFER LP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in millions, except per unit data)

(unaudited)


	Three Months Ended March 31,
		2023		2022
REVENUES:
Refined product sales		$	5,454	$	5,446
Crude sales		5,478		5,302
NGL sales		4,160		5,109
Gathering, transportation and other fees		2,777		2,693
Natural gas sales		899		1,753
Other		227		188
Total revenues		18,995		20,491
COSTS AND EXPENSES:
Cost of products sold		14,610		16,138
Operating expenses		1,025		949
Depreciation, depletion and amortization		1,059		1,028
Selling, general and administrative		238		230
Impairment losses		1		300
Total costs and expenses		16,933		18,645
OPERATING INCOME		2,062		1,846
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized		(619)		(559)
Equity in earnings of unconsolidated affiliates		88		56


Gains (losses) on interest rate derivatives		(20)		114
Other, net		7		21
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)		1,518		1,478
Income tax expense (benefit)		71		(9)
NET INCOME		1,447		1,487
Less: Net income attributable to noncontrolling interests		321		205
Less: Net income attributable to redeemable noncontrolling interests		13		13
NET INCOME ATTRIBUTABLE TO PARTNERS		1,113		1,269
General Partner’s interest in net income		1		1
Preferred Unitholders’ interest in net income		109		106
Common Unitholders’ interest in net income		$	1,003	$	1,162



NET INCOME PER COMMON UNIT:
Basic		$	0.32	$	0.38
Diluted		$	0.32	$	0.37

The accompanying notes are an integral part of these consolidated financial statements.

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ENERGY TRANSFER LP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in millions)

(unaudited)


	Three Months Ended March 31,
		2023		2022
Net income		$	1,447	$	1,487
Other comprehensive income (loss), net of tax:
Change in value of available-for-sale securities		1		(5)
Actuarial gain (loss) related to pension and other postretirement benefit plans		(5)		7
Foreign currency translation adjustments		1		11
Change in other comprehensive income from unconsolidated affiliates		—		12
		(3)		25
Comprehensive income		1,444		1,512
Less: Comprehensive income attributable to noncontrolling interests		321		210
Less: Comprehensive income attributable to redeemable noncontrolling interests		13		13
Comprehensive income attributable to partners		$	1,110	$	1,289

The accompanying notes are an integral part of these consolidated financial statements.

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ENERGY TRANSFER LP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(Dollars in millions)

(unaudited)


	Common Unitholders		Preferred Unitholders		General Partner		AOCI		Noncontrolling Interests		Total
Balance, December 31, 2022	$	26,960	$	6,051	$	(2)	$	16	$	7,634	$	40,659
Distributions to partners	(920)		(80)		(1)		—		—		(1,001)
Distributions to noncontrolling interests	—		—		—		—		(441)		(441)

Capital contributions from noncontrolling interests	—		—		—		—		3		3
Other comprehensive loss, net of tax	—		—		—		(3)		—		(3)
Other, net	14		—		—		—		4		18
Net income, excluding amounts attributable to redeemable noncontrolling interests	1,003		109		1		—		321		1,434
Balance, March 31, 2023	$	27,057	$	6,080	$	(2)	$	13	$	7,521	$	40,669


	Common Unitholders		Preferred Unitholders		General Partner		AOCI		Noncontrolling Interests		Total
Balance, December 31, 2021	$	25,230	$	6,051	$	(4)	$	23	$	8,045	$	39,345
Distributions to partners	(528)		(80)		—		—		—		(608)
Distributions to noncontrolling interests	—		—		—		—		(307)		(307)

Capital contributions from noncontrolling interests	—		—		—		—		373		373
Other comprehensive income, net of tax	—		—		—		20		5		25
Other, net	17		—		—		—		10		27
Net income, excluding amounts attributable to redeemable noncontrolling interests	1,162		106		1		—		205		1,474
Balance, March 31, 2022	$	25,881	$	6,077	$	(3)	$	43	$	8,331	$	40,329

The accompanying notes are an integral part of these consolidated financial statements.

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ENERGY TRANSFER LP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)

(unaudited)


	Three Months Ended March 31,
	2023		2022
OPERATING ACTIVITIES:
Net income	$	1,447	$	1,487
Reconciliation of net income to net cash provided by operating activities:
Depreciation, depletion and amortization	1,059		1,028
Deferred income taxes	53		32
Inventory valuation adjustments	(29)		(120)
Non-cash compensation expense	37		36
Impairment losses	1		300


Distributions on unvested awards	(20)		(15)
Equity in earnings of unconsolidated affiliates	(88)		(56)
Distributions from unconsolidated affiliates	87		44
Other non-cash	2		(46)
Net change in operating assets and liabilities, net of effects of acquisitions	801		(320)
Net cash provided by operating activities	3,350		2,370
INVESTING ACTIVITIES:
Cash paid for acquisitions, net of cash received	—		(589)
Capital expenditures, excluding allowance for equity funds used during construction	(853)		(752)
Contributions in aid of construction costs	16		20

Distributions from unconsolidated affiliates in excess of cumulative earnings	30		46
Proceeds from sales of other assets	4		4

Net cash used in investing activities	(803)		(1,271)
FINANCING ACTIVITIES:
Proceeds from borrowings	7,582		5,658
Repayments of debt	(8,605)		(5,428)



Capital contributions from noncontrolling interests	3		373
Distributions to partners	(1,001)		(608)
Distributions to noncontrolling interests	(441)		(307)
Distributions to redeemable noncontrolling interests	(12)		(12)


Net cash used in financing activities	(2,474)		(324)
Increase in cash and cash equivalents	73		775
Cash and cash equivalents, beginning of period	257		336
Cash and cash equivalents, end of period	$	330	$	1,111

The accompanying notes are an integral part of these consolidated financial statements.

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ENERGY TRANSFER LP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular dollar and unit amounts, except per unit data, are in millions)

(unaudited)

1.ORGANIZATION AND BASIS OF PRESENTATION

Organization

The consolidated financial statements presented herein contain the results of Energy Transfer LP and its subsidiaries (the “Partnership,” “we,” “us,” “our” or “Energy Transfer”).

Basis of Presentation

The unaudited financial information included in this Form 10-Q has been prepared on the same basis as the audited consolidated financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 17, 2023. In the opinion of the Partnership’s management, such financial information reflects all adjustments necessary for a fair presentation of the financial position and the results of operations for such interim periods in accordance with GAAP. All intercompany items and transactions have been eliminated in consolidation. Certain information and disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the SEC.

The consolidated financial statements of the Partnership presented herein include the results of operations of our controlled subsidiaries, including Sunoco LP and USAC. The Partnership owns the general partner interest, incentive distribution rights and 28.5 million common units of Sunoco LP, and the general partner interests and 46.1 million common units of USAC.

Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net income or total equity.

Use of Estimates

The unaudited consolidated financial statements have been prepared in conformity with GAAP, which requires the use of estimates and assumptions made by management that affect the reported amounts of assets, liabilities, revenues, expenses and the accrual for and disclosure of contingent assets and liabilities that exist at the date of the consolidated financial statements. Although these estimates are based on management’s available knowledge of current and expected future events, actual results could be different from those estimates.

2.ACQUISITIONS

Lotus Midstream Acquisition

On May 2, 2023, Energy Transfer acquired Lotus Midstream Operations, LLC (“Lotus Midstream”) for total consideration of $900 million in cash and approximately 44.5 million newly issued Energy Transfer common units. Lotus Midstream owns and operates Centurion Pipeline Company LLC, an integrated crude midstream platform located in the Permian Basin.

Sunoco LP Acquisition

On May 1, 2023, Sunoco LP completed the acquisition of 16 refined product terminals located across the East Coast and Midwest from Zenith Energy for $110 million.

3.CASH AND CASH EQUIVALENTS

Cash and cash equivalents include all cash on hand, demand deposits and investments with original maturities of three months or less. We consider cash equivalents to include short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. The Partnership’s consolidated balance sheets did not include any material amounts of restricted cash as of March 31, 2023 or December 31, 2022.

We place our cash deposits and temporary cash investments with high credit quality financial institutions. At times, our cash and cash equivalents may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation insurance limit.

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The net change in operating assets and liabilities, net of effects of acquisitions, included in cash flows from operating activities is comprised as follows:


	Three Months Ended March 31,
	2023		2022
Accounts receivable	$	197	$	(2,412)
Accounts receivable from related companies	(3)		(17)
Inventories	429		153
Other current assets	188		(119)
Other non-current assets, net	(4)		45
Accounts payable	(18)		1,885
Accounts payable to related companies	(11)		7
Accrued and other current liabilities	(13)		230
Other non-current liabilities	31		61
Derivative assets and liabilities, net	5		(153)
Net change in operating assets and liabilities, net of effects of acquisitions	$	801	$	(320)

Non-cash investing and financing activities were as follows:


	Three Months Ended March 31,
	2023		2022

Accrued capital expenditures	$	436	$	475

Lease assets obtained in exchange for new lease liabilities	1		56
Distribution reinvestment	23		12

4.INVENTORIES

Inventories consisted of the following:


	March 31, 2023		December 31, 2022
Natural gas, NGLs and refined products	$	1,419	$	1,802
Crude oil	184		246
Spare parts and other	444		413
Total inventories	$	2,047	$	2,461

Sunoco LP’s fuel inventories are stated at the lower of cost or market using the last-in, first-out (“LIFO”) method. As of March 31, 2023 and December 31, 2022, the carrying value of Sunoco LP’s fuel inventory included lower of cost or market reserves of $87 million and $116 million, respectively. For the three months ended March 31, 2023 and 2022, the Partnership’s consolidated income statements did not include any material amounts of income from the liquidation of Sunoco LP’s LIFO fuel inventory. For the three months ended March 31, 2023 and 2022, the Partnership’s cost of products sold included favorable inventory adjustments of $29 million and $120 million, respectively, related to Sunoco LP’s LIFO inventory.

5.FAIR VALUE MEASURES

We have commodity derivatives and interest rate derivatives that are accounted for as assets and liabilities at fair value in our consolidated balance sheets. We determine the fair value of our assets and liabilities subject to fair value measurement by using the highest possible “level” of inputs. Level 1 inputs are observable quotes in an active market for identical assets and liabilities. We consider the valuation of marketable securities and commodity derivatives transacted through a clearing broker with a published price from the appropriate exchange as a Level 1 valuation. Level 2 inputs are inputs observable for similar assets and liabilities. We consider OTC commodity derivatives entered into directly with third parties as a Level 2 valuation since the values of these derivatives are quoted on an exchange for similar transactions. Additionally, we

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consider options transacted through a clearing broker as having Level 2 inputs due to the level of activity of these contracts on the exchange in which they trade. The valuation methodologies employed for our interest rate derivatives do not necessitate material judgment, and the inputs are observed from actively quoted public markets and therefore are categorized in Level 2. Level 3 inputs are unobservable. During the three months ended March 31, 2023, no transfers were made between any levels within the fair value hierarchy.

The following tables summarize the gross fair value of our financial assets and liabilities measured and recorded at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 based on inputs used to derive their fair values:


			Fair Value Measurements at March 31, 2023
	Fair Value Total		Level 1		Level 2
Assets:

Commodity derivatives:

Natural Gas:
Basis Swaps IFERC/NYMEX	$	3	$	3	$	—
Swing Swaps IFERC	4		4		—
Fixed Swaps/Futures	31		31		—


Forward Physical Contracts	6		—		6
Power:
Forwards	45		—		45
Futures	9		9		—

Options – Calls	2		2		—
NGLs – Forwards/Swaps	219		219		—
Refined Products – Futures	1		1		—
Crude – Forwards/Swaps	41		41		—

Total commodity derivatives	361		310		51
Other non-current assets	28		18		10
Total assets	$	389	$	328	$	61
Liabilities:
Interest rate derivatives	$	(43)	$	—	$	(43)
Commodity derivatives:
Natural Gas:
Basis Swaps IFERC/NYMEX	(11)		(11)		—
Swing Swaps IFERC	(2)		(2)		—
Fixed Swaps/Futures	(2)		(2)		—


Forward Physical Contracts	(1)		—		(1)
Power:
Forwards	(45)		—		(45)
Futures	(7)		(7)		—
Options – Calls	(1)		(1)		—

NGLs – Forwards/Swaps	(205)		(205)		—
Refined Products – Futures	(16)		(16)		—
Crude – Forwards/Swaps	(19)		(19)		—
Total commodity derivatives	(309)		(263)		(46)
Total liabilities	$	(352)	$	(263)	$	(89)

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			Fair Value Measurements at December 31, 2022
	Fair Value Total		Level 1		Level 2
Assets:

Commodity derivatives:

Natural Gas:
Basis Swaps IFERC/NYMEX	$	60	$	60	$	—
Swing Swaps IFERC	75		75		—
Fixed Swaps/Futures	113		113		—


Forward Physical Contracts	10		—		10
Power:
Forwards	52		—		52
Futures	3		3		—


NGLs – Forwards/Swaps	317		317		—
Refined Products – Futures	20		20		—

Crude – Forwards/Swaps	38		38		—

Total commodity derivatives	688		626		62
Other non-current assets	27		18		9
Total assets	$	715	$	644	$	71
Liabilities:
Interest rate derivatives	$	(23)	$	—	$	(23)
Commodity derivatives:
Natural Gas:
Basis Swaps IFERC/NYMEX	(25)		(25)		—
Swing Swaps IFERC	(12)		(12)		—
Fixed Swaps/Futures	(4)		(4)		—


Forward Physical Contracts	(2)		—		(2)
Power:
Forwards	(51)		—		(51)
Futures	(3)		(3)		—

NGLs – Forwards/Swaps	(358)		(358)		—
Refined Products – Futures	(59)		(59)		—

Crude – Forwards/Swaps	(12)		(12)		—

Total commodity derivatives	(526)		(473)		(53)
Total liabilities	$	(549)	$	(473)	$	(76)

Based on the estimated borrowing rates currently available to us and our subsidiaries for loans with similar terms and average maturities, the aggregate fair value and carrying amount of our consolidated debt obligations as of March 31, 2023 were $44.43 billion and $47.23 billion, respectively. As of December 31, 2022, the aggregate fair value and carrying amount of our consolidated debt obligations were $45.42 billion and $48.26 billion, respectively. The fair value of our consolidated debt obligations is a Level 2 valuation based on the respective debt obligations’ observable inputs for similar liabilities.

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6.NET INCOME PER COMMON UNIT

A reconciliation of income or loss and weighted average units used in computing basic and diluted income per common unit is as follows:


	Three Months Ended March 31,
		2023		2022
Net income		$	1,447	$	1,487
Less: Net income attributable to noncontrolling interests		321		205
Less: Net income attributable to redeemable noncontrolling interests		13		13
Net income, net of noncontrolling interests		1,113		1,269
Less: General Partner’s interest in net income		1		1
Less: Preferred Unitholders’ interest in net income