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Investments in Unconsolidated Affiliates | 12 Months Ended
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Dec. 31, 2018
Investments in Unconsolidated Affiliates [Abstract] |
Investments in Unconsolidated Affiliates | Note 5. 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, |  |  | December 31, |
|  | 2018 |  |  | 2018 |  |  | 2017 |
NGL Pipelines & Services: |  |  |  |  |  |  |  |  |
Venice Energy Service Company, L.L.C. (“VESCO”) |  | 13.1% |  |  | $ | 24.1 |  |  | $ | 25.7 |
K/D/S Promix, L.L.C. (“Promix”) |  | 50% |  |  |  | 28.9 |  |  |  | 30.9 |
Baton Rouge Fractionators LLC (“BRF”) |  | 32.2% |  |  |  | 16.3 |  |  |  | 17.0 |
Skelly-Belvieu Pipeline Company, L.L.C. (“Skelly-Belvieu”) |  | 50% |  |  |  | 35.6 |  |  |  | 37.0 |
Texas Express Pipeline LLC (“Texas Express”) |  | 35% |  |  |  | 337.6 |  |  |  | 314.4 |
Texas Express Gathering LLC (“TEG”) |  | 45% |  |  |  | 43.6 |  |  |  | 35.9 |
Front Range Pipeline LLC (“Front Range”) |  | 33.3% |  |  |  | 175.9 |  |  |  | 165.7 |
Delaware Basin Gas Processing LLC (“Delaware Processing”) (1) |  | 100% |  |  |  | -- |  |  |  | 107.3 |
Crude Oil Pipelines & Services: |  |  |  |  |  |  |  |  |  |  |  |
Seaway Crude Pipeline Company LLC (“Seaway”) |  | 50% |  |  |  | 1,369.7 |  |  |  | 1,378.9 |
Eagle Ford Pipeline LLC (“Eagle Ford Crude Oil Pipeline”) |  | 50% |  |  |  | 388.7 |  |  |  | 385.2 |
Eagle Ford Terminals Corpus Christi LLC (“Eagle Ford Corpus Christi”) |  | 50% |  |  |  | 109.1 |  |  |  | 75.1 |
Natural Gas Pipelines & Services: |  |  |  |  |  |  |  |  |  |  |  |
White River Hub, LLC (“White River Hub”) |  | 50% |  |  |  | 20.1 |  |  |  | 20.8 |
Old Ocean Pipeline, LLC (“Old Ocean”) |  | 50% |  |  |  | 2.7 |  |  |  | -- |
Petrochemical & Refined Products Services: |  |  |  |  |  |  |  |  |  |  |  |
Centennial Pipeline LLC (“Centennial”) |  | 50% |  |  |  | 59.1 |  |  |  | 60.8 |
Baton Rouge Propylene Concentrator LLC (“BRPC”) |  | 30% |  |  |  | 3.2 |  |  |  | 4.1 |
Transport 4, LLC (“Transport 4”) |  | 25% |  |  |  | 0.5 |  |  |  | 0.6 |
Total |  |  |  |  |  | $ | 2,615.1 |  |  | $ | 2,659.4 |
(1)In March 2018, we acquired the remaining 50% membership interest in our Delaware Processing joint venture. See Note 12 for information regarding this acquisition. |
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 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. In addition, BRF leases an NGL storage cavern.
§ | 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 Mont Belvieu NGL fractionation and storage complex. 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 mixed NGLs to the Texas Express Pipeline. 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.
§ | 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 and other third party facilities in Skellytown.
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, which consists of two pipelines, provides north-to-south transportation of crude oil from the Cushing hub to Seaway’s Jones Creek terminal near Freeport, Texas and a terminal that we own located near Katy, Texas. The Freeport System consists of a marine import and export dock, three pipelines and other related facilities that transport crude oil to and from Freeport and the Jones Creek terminal. The Texas City System consists of a marine import and export dock, storage tanks, various pipelines and other related facilities that transport crude oil to refineries in the Texas City, Texas area and to and from terminals in the Galena Park area, our Enterprise Crude Houston (“ECHO”) terminal and locations along the Houston Ship Channel. The Texas City System also receives production from certain offshore Gulf of Mexico developments.
§ | Eagle Ford Crude Oil Pipeline owns a crude oil pipeline that transports crude oil and condensate for producers in South Texas. The system consists of a crude oil and condensate pipeline system originating in Gardendale, Texas in LaSalle County to Three Rivers, Texas in Live Oak County and extending to Corpus Christi, Texas. The system also includes a pipeline segment that interconnects 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.
§ | Eagle Ford Corpus Christi is a joint venture formed in March 2015 to construct and operate a new deep-water marine crude oil terminal that is designed to handle a variety of ocean-going vessels. The new terminal is expected to be placed into service during the second quarter of 2019.
Natural Gas Pipelines & Services The principal business activity of each investee included in our Natural Gas Pipelines & Services segment is described as follows:
§ | 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.
§ | Old Ocean was formed in May 2018 with Energy Transfer Partners, L.P. (“ETP”) to facilitate the resumption of full service on the Old Ocean natural gas pipeline owned by ETP. The 24-inch diameter Old Ocean Pipeline originates in Maypearl, Texas in Ellis County and extends south approximately 240 miles to Sweeny, Texas in Brazoria County. ETP serves as operator of the pipeline.
Petrochemical & Refined Products Services The principal business activity of each investee included in our Petrochemical & Refined Products Services segment is described as follows:
§ | Centennial owns an interstate refined products pipeline that extends from Beaumont, Texas, to Bourbon, Illinois. Centennial also owns a refined products storage terminal located near Creal Springs, Illinois.
§ | BRPC owns a propylene fractionation facility located in south Louisiana that fractionates refinery grade propylene into chemical grade propylene.
§ | Transport 4 provides pipeline and terminal logistics services used by our refined products pipelines.
Equity Earnings The following table presents our equity in income (loss) of unconsolidated affiliates by business segment for the years indicated:
|  | For the Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
NGL Pipelines & Services |  | $ | 117.0 |  |  | $ | 73.4 |  |  | $ | 61.4 |
Crude Oil Pipelines & Services |  |  | 365.4 |  |  |  | 358.4 |  |  |  | 311.9 |
Natural Gas Pipelines & Services |  |  | 6.8 |  |  |  | 3.8 |  |  |  | 3.8 |
Petrochemical & Refined Products Services (1) |  |  | (9.2 | ) |  |  | (9.6 | ) |  |  | (15.1 | )
Total |  | $ | 480.0 |  |  | $ | 426.0 |  |  | $ | 362.0 |
(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 market and income approaches, indicate that the fair value of this investment remains 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, |
|  | 2018 |  |  | 2017 |
NGL Pipelines & Services |  | $ | 21.7 |  |  | $ | 22.9 |
Crude Oil Pipelines & Services |  |  | 17.4 |  |  |  | 18.2 |
Petrochemical & Refined Products Services |  |  | 1.7 |  |  |  | 1.8 |
Total |  | $ | 40.8 |  |  | $ | 42.9 |
In total, amortization of excess cost amounts were $2.1 million for each of the years ended December 31, 2018, 2017 and 2016. We forecast that our amortization of excess cost amount will approximate $2.1 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, |  |  |  |
|  | 2018 |  |  | 2017 |  |  |  |
Balance Sheet Data: |  |  |  |  |  |  |  |  |
Current assets |  | $ | 350.2 |  |  | $ | 288.8 |  |  |  |
Property, plant and equipment, net |  |  | 5,359.1 |  |  |  | 5,509.7 |  |  |  |
Other assets |  |  | 80.4 |  |  |  | 71.2 |  |  |  |
Total assets |  | $ | 5,789.7 |  |  | $ | 5,869.7 |  |  |  |
Current liabilities |  | $ | 220.6 |  |  | $ | 233.5 |  |  |  |
Other liabilities |  |  | 77.9 |  |  |  | 84.8 |  |  |  |
Combined equity |  |  | 5,491.2 |  |  |  | 5,551.4 |  |  |  |
Total liabilities and combined equity |  | $ | 5,789.7 |  |  | $ | 5,869.7 |  |  |  |
|  | For the Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Income Statement Data: |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,721.3 |  |  | $ | 1,509.0 |  |  | $ | 1,342.0 |
Operating income |  |  | 1,074.6 |  |  |  | 925.9 |  |  |  | 786.7 |
Net income |  |  | 1,069.1 |  |  |  | 929.5 |  |  |  | 781.7 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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