Investments

Our investments primarily consist of equity investments where we hold significant influence over investee actions and for which we apply the equity method of accounting. As of December 31, 2017 and 2016, our investments consisted of the following (in millions):



	December 31,
	2017		2016
Citrus Corporation	$	1,698	$	1,709
SNG	1,495		1,505
Ruby	774		798
NGPL Holdings LLC	687		475
Gulf LNG Holdings Group, LLC	461		485
Plantation Pipe Line Company	331		333
EagleHawk	314		329
Utopia Holding LLC	276		55
MEP	253		328
Red Cedar Gathering Company	187		191
Watco Companies, LLC	182		180
Double Eagle Pipeline LLC	149		151
FEP	112		101
Liberty Pipeline Group LLC	71		75
Bear Creek Storage	63		61
Sierrita Gas Pipeline LLC	55		57
Fort Union Gas Gathering L.L.C.	12		25
All others	178		169
Total investments	$	7,298	$	7,027

As shown in the investment balance table above and the earnings (losses) from equity investments table below, our significant equity investments, as of December 31, 2017 consisted of the following:

•

Citrus Corporation—We own a 50% interest in Citrus Corporation, the sole owner of Florida Gas Transmission Company, L.L.C. (Florida Gas). Florida Gas transports natural gas to cogeneration facilities, electric utilities, independent power producers, municipal generators, and local distribution companies through a 5,300-mile natural gas pipeline. Energy Transfer Partners L.P. operates Florida Gas and owns the remaining 50% interest in Citrus;


•	SNG—We operate SNG and own a 50% interest in SNG; and Evergreen Enterprise Holdings, LLC, a subsidiary of Southern Company, owns the remaining 50% interest.


•	Ruby—We operate Ruby and own the common interest in Ruby, the sole owner of the Ruby Pipeline natural gas transmission system. Pembina Pipeline Corporation (Pembina) owns the remaining interest in Ruby in the form of a convertible preferred interest. If Pembina converted its preferred interest into common interest, we and Pembina would each own a 50% common interest in Ruby;


•	NGPL Holdings LLC— We operate NGPL Holdings LLC and own a 50% interest in NGPL Holdings LLC, the indirect owner of NGPL and certain affiliates, collectively referred to in this report as NGPL, a major interstate natural gas pipeline and storage system. The remaining 50% interest is owned by Brookfield;

•

Gulf LNG Holdings Group, LLC—We operate Gulf LNG Holdings Group, LLC and own a 50% interest in Gulf LNG Holdings Group, LLC, the owner of a LNG receiving, storage and regasification terminal near Pascagoula, Mississippi, as well as pipeline facilities to deliver vaporized natural gas into third party pipelines for delivery into various markets around the country. The remaining 50% interest is owned by a variety of investment entities, including subsidiaries of The Blackstone Group, LP; Warburg Pincus, LLC; Kelso and Company; and Lightfoot Capital Partners, LP, which is majority owned by GE Energy Financial Services.

•

Plantation—We operate Plantation and own a 51.17% interest in Plantation, the sole owner of the Plantation refined petroleum products pipeline system. A subsidiary of Exxon Mobil Corporation owns the remaining interest. Each investor has an equal number of directors on Plantation’s board of directors, and board approval is required for certain corporate actions that are considered substantive participating rights; therefore, we do not control Plantation, and account for the investment under the equity method;


•	BHP Billiton Petroleum (Eagle Ford) LLC, (EagleHawk)—We own a 25% interest in EagleHawk, the sole owner of natural gas and condensate gathering systems serving the producers of the Eagle Ford shale formation. A subsidiary of BHP Billiton Petroleum operates EagleHawk and owns the remaining 75% ownership interest;


•	Utopia Holding L.L.C. — We operate Utopia Holding L.L.C. and own a 50% interest in Utopia Holding L.L.C. Riverstone Investment Group LLC owns the remaining 50% interest;


•	MEP—We operate MEP and own a 50% interest in MEP, the sole owner of the MEP natural gas pipeline system. The remaining 50% ownership interest is owned by subsidiaries of Energy Transfer Partners L.P.;


•	Red Cedar Gathering Company—We own a 49% interest in Red Cedar Gathering Company, the sole owner of the Red Cedar natural gas gathering, compression and treating system. The Southern Ute Indian Tribe owns the remaining 51% interest and serves as operator of Red Cedar;

•

Watco Companies, LLC—We hold a preferred and common equity investment in Watco Companies, LLC, the largest privately held short line railroad company in the U.S. We own 100,000 Class A and 50,000 Class B preferred shares and pursuant to the terms of the investment, receive priority, cumulative cash and stock distributions from the preferred shares at a rate of 3.25% and 3.00% per quarter, respectively, and participate partially in additional profit distributions at a rate equal to 0.4%. Neither class holds any voting powers, but do provide us certain approval rights, including the right to appoint one of the members to Watco’s board of managers. In addition to the senior interests, we also hold approximately 13,000 common equity units, which represents a 3.2% common ownership;


•	Double Eagle Pipeline LLC - We own a 50% equity interest in Double Eagle Pipeline LLC. The remaining 50% interest is owned by Magellan Midstream Partners;


•	FEP —We own a 50% interest in FEP, the sole owner of the Fayetteville Express natural gas pipeline system. Energy Transfer Partners, L.P. owns the remaining 50% interest and serves as operator of FEP;


•	Liberty Pipeline Group, LLC (Liberty) —We own a 50% interest in Liberty. ETC NGL Transport, LLC, a subsidiary of Energy Transfer Partners, L.P. owns the remaining 50% interest and serves as operator of Liberty;


•	Bear Creek Storage—We own a combined 75% interest in Bear Creek through: our wholly owned subsidiary’s (TGP) 50% interest and an additional 25% indirect interest through our 50% equity interest in SNG, which owns the remaining 50% interest;


•	Sierrita Gas Pipeline LLC — We operate Sierrita Gas Pipeline LLC and own a 35% equity interest in the Sierrita Gas Pipeline LLC. MGI Enterprises U.S. LLC, a subsidiary of PEMEX, owns 35%; and MIT Pipeline Investment Americas, Inc., a subsidiary of Mitsui & Co., Ltd, owns 30%;


•	Fort Union Gas Gathering LLC—We own a 37.04% equity interest in the Fort Union Gas Gathering LLC. Crestone Powder River LLC, a subsidiary of ONEOK Partners L.P., owns 37.04%; Powder River Midstream, LLC owns 11.11%; and Western Gas Wyoming, LLC owns the remaining 14.81%. Western Gas Resources, Inc. serves as operator of Fort Union Gas Gathering LLC;


•	Cortez Pipeline Company—We operate the Cortez CO₂ pipeline system, and as of December 31, 2017, we owned a 52.98% interest in the Cortez Pipeline Company, the sole owner of the Cortez CO₂ pipeline system. Mobil Cortez Pipeline Inc. owns 33.25%; and Cortez Vickers Pipeline Company owns the remaining 13.77%.

Our earnings (losses) from equity investments were as follows (in millions):



	Year Ended December 31,
	2017			2016			2015
Citrus Corporation	$	108		$	102		$	96
SNG	77			58			—
FEP	53			51			55
Gulf LNG Holdings Group, LLC	47			48			49
Plantation Pipe Line Company	46			37			29
Cortez Pipeline Company(a)	44			24			(3		)
Ruby	44			15			18
MEP	38			40			45
EagleHawk	24			10			24
Watco Companies, LLC	19			25			16
Red Cedar Gathering Company(b)	14			24			26
Fort Union Gas Gathering L.L.C.(c)	10			1			16
NGPL Holdings LLC	10			12			—
Liberty Pipeline Group LLC	9			11			9
Bear Creek Storage	8			2			—
Sierrita Gas Pipeline LLC	7			7			9
Double Eagle Pipeline LLC	7			5			3
Parkway Pipeline LLC	—			14			5
All others	13			11			17
Total earnings from equity investments	$	578		$	497		$	414
Amortization of excess costs	(61		)	(59		)	(51		)

_______


(a)	2017, 2016 and 2015 amounts include $(4) million, $9 million and $26 million, respectively, representing our share of a non-cash impairment charge (pre-tax) recorded by Cortez Pipeline Company.


(b)	2017 amount includes non-cash impairment charges of $10 million (pre-tax) related to our investment.


(c)	2016 amount includes non-cash impairment charges of $7 million (pre-tax) related to our investment.

Summarized combined financial information for our significant equity investments (listed or described above) is reported below (in millions; amounts represent 100% of investee financial information):



	Year Ended December 31,
Income Statement	2017		2016		2015
Revenues	$	4,703	$	4,084	$	3,857
Costs and expenses	3,398		3,056		3,408
Net income	$	1,305	$	1,028	$	449



	December 31,
Balance Sheet	2017		2016
Current assets	$	956	$	892
Non-current assets	22,344		22,170
Current liabilities	1,241		3,532
Non-current liabilities	10,605		9,187
Partners’/owners’ equity	11,454		10,343