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Investments in Unconsolidated Affiliates | 12 Months Ended
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Dec. 31, 2015
Investments in Unconsolidated Affiliates [Abstract] |
Investments in Unconsolidated Affiliates | Note 6. Investments in Unconsolidated Affiliates The following table presents our investments in unconsolidated affiliates by business segment at the dates indicated. We account for these investments using the equity method.
|  | Ownership Interest at December 31, 2015 |  |  | December 31, |
|  |  |  |  | 2015 |  |  | 2014 |
NGL Pipelines & Services: |  |  |  |  |  |  |  |  |
Venice Energy Service Company, L.L.C. ("VESCO") |  | 13.1% |  |  | $ | 25.9 |  |  | $ | 27.7 |
K/D/S Promix, L.L.C. ("Promix") |  | 50% |  |  |  | 38.3 |  |  |  | 38.5 |
Baton Rouge Fractionators LLC ("BRF") |  | 32.2% |  |  |  | 18.5 |  |  |  | 18.8 |
Skelly-Belvieu Pipeline Company, L.L.C. ("Skelly-Belvieu") |  | 50% |  |  |  | 39.8 |  |  |  | 40.1 |
Texas Express Pipeline LLC ("Texas Express") |  | 35% |  |  |  | 342.0 |  |  |  | 349.3 |
Texas Express Gathering LLC ("TEG") |  | 45% |  |  |  | 36.8 |  |  |  | 37.9 |
Front Range Pipeline LLC ("Front Range") |  | 33.3% |  |  |  | 171.2 |  |  |  | 170.0 |
Delaware Basin Gas Processing LLC ("Delaware Processing") |  | 50% |  |  |  | 46.2 |  |  |  | -- |
Crude Oil Pipelines & Services: |  |  |  |  |  |  |  |  |  |  |
Seaway Crude Pipeline Company LLC ("Seaway") |  | 50% |  |  |  | 1,396.0 |  |  |  | 1,431.2 |
Eagle Ford Pipeline LLC ("Eagle Ford Crude Oil Pipeline") |  | 50% |  |  |  | 388.8 |  |  |  | 336.5 |
Eagle Ford Terminals Corpus Christi LLC ("Eagle Ford Corpus Christi") |  | 50% |  |  |  | 28.6 |  |  |  | -- |
Natural Gas Pipelines & Services: |  |  |  |  |  |  |  |  |  |  |
White River Hub, LLC ("White River Hub") |  | 50% |  |  |  | 22.5 |  |  |  | 23.2 |
Petrochemical & Refined Products Services: |  |  |  |  |  |  |  |  |  |  |
Baton Rouge Propylene Concentrator, LLC ("BRPC") |  | 30% |  |  |  | 5.4 |  |  |  | 6.5 |
Centennial Pipeline LLC ("Centennial") |  | 50% |  |  |  | 65.6 |  |  |  | 66.1 |
Other |  | Various |  |  |  | 2.9 |  |  |  | 2.5 |
Offshore Pipelines & Services: |  |  |  |  |  |  |  |  |  |  |
Various, sold to Genesis in July 2015 (see Note 5) |  | n/a |  |  |  | -- |  |  |  | 493.7 |
Total investments in unconsolidated affiliates |  |  |  |  | $ | 2,628.5 |  |  | $ | 3,042.0 |
NGL Pipelines & Services The principal business activity of each investee included in our NGL Pipelines & Services segment is described as follows:
 | VESCO owns a natural gas processing facility in south Louisiana and a related gathering system that gathers natural gas from certain offshore developments for delivery to its natural gas processing facility.
 | Promix owns an NGL fractionation facility and related storage caverns located in south Louisiana. The facility receives mixed NGLs via pipeline from natural gas processing plants located in southern Louisiana and along the Mississippi Gulf Coast. In addition, Promix owns an NGL gathering system that gathers mixed NGLs from processing plants in southern Louisiana for its fractionator.
 | BRF owns an NGL fractionation facility located in south Louisiana that receives mixed NGLs from natural gas processing plants located in Alabama, Mississippi and southern Louisiana.
 | Skelly-Belvieu owns a pipeline that transports mixed NGLs from Skellytown, Texas to Mont Belvieu, Texas. The Skelly-Belvieu Pipeline receives NGLs through a pipeline interconnect with our Mid-America Pipeline System in Skellytown.
 | Texas Express owns an NGL pipeline that extends from Skellytown to our NGL fractionation and storage complex in Mont Belvieu. This pipeline commenced operations in November 2013. Mixed NGLs from the Rocky Mountains, Permian Basin and Mid-Continent regions are delivered to the Texas Express Pipeline via an interconnect with our Mid-America Pipeline System near Skellytown. The pipeline also transports mixed NGLs from two gathering systems owned by TEG to Mont Belvieu. In addition, mixed NGLs from the Denver-Julesburg Basin in Colorado are transported to the Texas Express Pipeline using the Front Range Pipeline.
 | TEG owns two NGL gathering systems that deliver volumes to the Texas Express Pipeline. These gathering systems commenced operations in November 2013. The Elk City gathering system gathers mixed NGLs from natural gas processing plants in the Anadarko/Granite Wash production area located in the Texas Panhandle and western Oklahoma. The North Texas gathering system gathers mixed NGLs from natural gas processing plants in the Barnett Shale production area in North Texas. An affiliate of Enbridge Energy Partners, L.P. serves as operator of these two NGL gathering systems.
 | Front Range owns an NGL pipeline that transports mixed NGLs from natural gas processing plants located in the Denver-Julesburg Basin to an interconnect with our Texas Express Pipeline and Mid-America Pipeline System in Skellytown. The Front Range Pipeline commenced operations in February 2014.
 | Delaware Processing was formed with Occidental Petroleum Corporation in April 2015 to plan, design and construct a new 150 million cubic feet per day cryogenic natural gas processing plant to accommodate the growing production of NGL-rich natural gas in the Delaware Basin, in West Texas and southern New Mexico. The facility, located in Reeves County, Texas, will be supported by long-term, firm contracts and is expected to begin operations in mid-2016. We serve as construction manager for the project and will serve as operator once the new facility commences operations.
Crude Oil Pipelines & Services The principal business activity of each investee included in our Crude Oil Pipelines & Services segment is described as follows:
 | Seaway owns a pipeline system that connects the Cushing, Oklahoma crude oil hub with markets in Southeast Texas. The Seaway Pipeline is comprised of the Longhaul System, the Freeport System and the Texas City System. The Cushing hub is a major industry trading hub and price settlement point for West Texas Intermediate on the NYMEX.
The Longhaul System provides north-to-south transportation of crude oil from the Cushing hub to Seaway's Jones Creek terminal near Freeport, Texas and our terminal located near Katy, Texas. In July 2014 we completed a pipeline looping project involving our Longhaul System. This expansion project entailed the construction of an additional pipeline that transports crude oil southbound from the Cushing hub to Seaway's Jones Creek terminal. The Freeport System consists of a marine dock, three pipelines and other related facilities that transport crude oil to and from Freeport to the Jones Creek terminal. The Texas City System consists of a ship unloading dock, storage tanks, various pipelines and other related facilities that deliver crude oil from Texas City, Texas to Galena Park, Texas and other nearby locations. The Freeport System and Texas City System make only intrastate movements. Seaway also owns storage tanks at the Jones Creek terminal, which are connected to the Longhaul System, and storage tanks at our Enterprise Crude Houston ("ECHO") terminal.
 | Eagle Ford Crude Oil Pipeline owns a crude oil pipeline that transports crude oil and condensate for producers in South Texas that commenced operations in July 2013. The system consists of a crude oil and condensate pipeline system extending from Gardendale, Texas in LaSalle County to Three Rivers, Texas in Live Oak County and continuing on to Corpus Christi, Texas. The system also includes a pipeline segment extending from Three Rivers to an interconnect with our South Texas Crude Oil Pipeline System in Wilson County. This system includes a marine terminal facility in Corpus Christi and storage capacity across the system. Plains All American Pipeline, L.P., our joint venture partner in the pipeline, serves as operator of the system.
 | Eagle Ford Corpus Christi was formed with Plains Marketing, L.P., a subsidiary of Plains All American Pipeline, L.P., in March 2015 to construct and operate a marine terminal that will handle crude oil delivered by Eagle Ford Crude Oil Pipeline. This terminal is expected to be completed in 2018.
Natural Gas Pipelines & Services White River Hub owns a natural gas hub facility serving producers in the Piceance Basin of northwest Colorado. The facility enables producers to access six interstate natural gas pipelines. Petrochemical & Refined Products Services The principal business activity of each significant investee included in our Petrochemical & Refined Products Services segment is described as follows:
 | BRPC owns a propylene fractionation facility located in south Louisiana that fractionates refinery grade propylene into chemical grade propylene.
 | Centennial owns an interstate refined products pipeline that extends from an origination facility in Beaumont, Texas, to Bourbon, Illinois. Centennial also owns a refined products storage terminal located near Creal Springs, Illinois.
Offshore Pipelines & Services Our investments in unconsolidated affiliates classified within the Offshore Pipelines & Services segment were sold to Genesis on July 24, 2015 (see Note 5). At June 30, 2015, the carrying value of these investments was $482.4 million. Equity Earnings The following table presents our equity in income (loss) of unconsolidated affiliates by business segment for the periods indicated:
|  | For the Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
NGL Pipelines & Services |  | $ | 57.5 |  |  | $ | 30.6 |  |  | $ | 15.7 |
Crude Oil Pipelines & Services |  |  | 281.4 |  |  |  | 184.6 |  |  |  | 140.3 |
Natural Gas Pipelines & Services |  |  | 3.8 |  |  |  | 3.6 |  |  |  | 3.8 |
Petrochemical & Refined Products Services (1) |  |  | (15.7 | ) |  |  | (13.3 | ) |  |  | (22.3 | )
Offshore Pipelines & Services |  |  | 46.6 |  |  |  | 54.0 |  |  |  | 29.8 |
Total |  | $ | 373.6 |  |  | $ | 259.5 |  |  | $ | 167.3 |
(1) Losses are primarily attributable to our investment in Centennial. As a result of a trend in declining earnings, we estimated the fair value of this equity-method investment during each of the last three fiscal years. Our estimates, based on a combination of the market and income approaches, indicate that the fair value of this investment remains substantially in excess of its carrying value. |
Excess Cost On occasion, the price we pay to acquire an ownership interest in a company exceeds the underlying carrying value of the capital accounts we acquire. These excess cost amounts are attributable to the fair value of the underlying tangible assets of these entities exceeding their respective book carrying values at the time of our acquisition of ownership interests in these entities. We amortize such excess cost amounts as a reduction to equity earnings in a manner similar to depreciation. The following table presents our unamortized excess cost amounts by business segment at the dates indicated:
|  | December 31, |
|  | 2015 |  |  | 2014 |
NGL Pipelines & Services |  | $ | 25.3 |  |  | $ | 26.5 |
Crude Oil Pipelines & Services |  |  | 19.3 |  |  |  | 21.7 |
Petrochemical & Refined Products Services |  |  | 2.3 |  |  |  | 2.4 |
Offshore Pipelines & Services (1) |  |  | -- |  |  |  | 9.0 |
Total |  | $ | 46.9 |  |  | $ | 59.6 |
(1) Our investments in unconsolidated affiliates classified within the Offshore Pipelines & Services segment were sold to Genesis in July 2015. |
In total, amortization of excess cost amounts were $4.9 million, $3.3 million and $3.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. We forecast that our amortization of excess cost amount will approximate $2.2 million in each of the next five years. Summarized Combined Financial Information of Unconsolidated Affiliates Combined balance sheet information for the last two years and results of operations data for the last three years for our unconsolidated affiliates are summarized in the following table (all data presented on a 100% basis):
|  | December 31, |  |  |  |
|  | 2015 |  |  | 2014 |  |  |  |
Balance Sheet Data: |  |  |  |  |  |  |  |  |
Current assets |  | $ | 204.5 |  |  | $ | 289.9 |  |  |  |
Property, plant and equipment, net |  |  | 5,671.1 |  |  |  | 6,766.5 |  |  |  |
Other assets |  |  | 58.9 |  |  |  | 60.4 |  |  |  |
Total assets |  | $ | 5,934.5 |  |  | $ | 7,116.8 |  |  |  |
Current liabilities |  | $ | 306.7 |  |  | $ | 305.9 |  |  |  |
Other liabilities |  |  | 103.2 |  |  |  | 309.9 |  |  |  |
Combined equity |  |  | 5,524.6 |  |  |  | 6,501.0 |  |  |  |
Total liabilities and combined equity |  | $ | 5,934.5 |  |  | $ | 7,116.8 |  |  |  |
|  | For the Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Income Statement Data: |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,426.6 |  |  | $ | 1,311.3 |  |  | $ | 947.4 |
Operating income |  |  | 825.8 |  |  |  | 600.0 |  |  |  | 423.9 |
Net income |  |  | 814.1 |  |  |  | 587.9 |  |  |  | 382.6 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32847-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32787-111569 + Details
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