XML 32 R15.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Investments Investments (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2018
Investments [Abstract] |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 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, 2018 and 2017, our investments consisted of the following (in millions):
| December 31,
| 2018 |  | 2017
Citrus Corporation | $ | 1,708 |  |  | $ | 1,698 |
SNG | 1,536 |  |  | 1,495 |
Ruby | 750 |  |  | 774 |
NGPL Holdings LLC | 733 |  |  | 687 |
Gulf LNG Holdings Group, LLC | 361 |  |  | 461 |
Plantation Pipe Line Company | 344 |  |  | 331 |
Utopia Holding LLC | 333 |  |  | 276 |
EagleHawk | 299 |  |  | 314 |
Gulf Coast Express Pipeline LLC | 240 |  |  | — |
MEP | 235 |  |  | 253 |
Red Cedar Gathering Company | 191 |  |  | 187 |
Watco Companies, LLC | 185 |  |  | 182 |
Double Eagle Pipeline LLC | 140 |  |  | 149 |
Liberty Pipeline Group LLC | 66 |  |  | 71 |
Bear Creek Storage | 65 |  |  | 63 |
Sierrita Gas Pipeline LLC | 55 |  |  | 55 |
Permian Highway Pipeline | 45 |  |  | — |
FEP | 44 |  |  | 112 |
All others | 151 |  |  | 190 |
Total investments | $ | 7,481 |  |  | $ | 7,298 |
As shown in the investment balance table above and the earnings from equity investments table below, our significant equity investments, as of December 31, 2018 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 Chatham Asset Management, LLC, which is directed by Chatham Asset GP, LLC;
• | 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;
• | 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;
• | BHP Billiton Petroleum (Eagle Ford Gathering) 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 (Tx Gathering), LLC operates EagleHawk and owns the remaining 75% ownership interest;
• | Gulf Coast Express Pipeline LLC — We operate Gulf Coast Express Pipeline LLC and own 35% interest of Gulf Coast Express Pipeline LLC indirectly through Kinder Morgan Texas Pipeline LLC, our 100% subsidiary. DCP GCX Pipeline LLC, an indirect subsidiary of DCP Midstream, owns 25% interest; Targa GCX Pipeline LLC, an indirect subsidiary of Targa Resources Corp., owns 25% interest and Altus Midstream Company, an indirect subsidiary of Apache Corporation, owns 15% 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;
• | 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% interest in 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%;
• | Permian Highway Pipeline — We operate Permian Highway Pipeline and own a 50% interest of Permian Highway Pipeline indirectly through KMTP, our wholly owned subsidiary. BCP PHP, LLC (BCP), a portfolio company of Blackstone Energy Partners, owns the remaining 50% interest. An affiliate of an anchor shipper exercised its option in January 2019 to acquire a 20% equity interest in the project, bringing KMTP’s and BCP’s ownership interest to 40% each. Altus Midstream Company (Altus Midstream) (a gas gathering, processing and transportation company formed by shipper Apache Corporation) has an option to acquire an equity interest in the project from the initial partners by September 2019. If Altus Midstream exercises its option, KMTP, BCP and Altus Midstream will each hold a 26.67% ownership interest in the project. KMTP will build and operate the pipeline;
• | 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;
• | Cortez Pipeline Company—We operate the Cortez CO 2 pipeline system, and own a 52.98% interest in the Cortez Pipeline Company, the sole owner of the Cortez CO 2 pipeline system. Mobil Cortez Pipeline Inc. owns 33.25%; and Cortez Vickers Pipeline Company owns the remaining 13.77%.
Our earnings from equity investments were as follows (in millions):
| Year Ended December 31,
| 2018 |  | 2017 |  | 2016
Gulf LNG Holdings Group, LLC(a) | $ | 209 |  |  | $ | 47 |  |  | $ | 48 |
Citrus Corporation | 169 |  |  | 108 |  |  | 102 |
SNG | 141 |  |  | 77 |  |  | 58 |
NGPL Holdings LLC | 66 |  |  | 10 |  |  | 12 |
FEP | 55 |  |  | 53 |  |  | 51 |
Plantation Pipe Line Company | 55 |  |  | 46 |  |  | 37 |
Cortez Pipeline Company(b) | 36 |  |  | 44 |  |  | 24 |
MEP | 31 |  |  | 38 |  |  | 40 |
Ruby | 26 |  |  | 44 |  |  | 15 |
Watco Companies, LLC | 21 |  |  | 19 |  |  | 25 |
Red Cedar Gathering Company(c) | 18 |  |  | 14 |  |  | 24 |
Utopia Holding LLC | 14 |  |  | — |  |  | — |
Double Eagle Pipeline LLC | 10 |  |  | 7 |  |  | 5 |
Bear Creek Storage | 9 |  |  | 8 |  |  | 2 |
EagleHawk | 7 |  |  | 24 |  |  | 10 |
Liberty Pipeline Group LLC | 7 |  |  | 9 |  |  | 11 |
Sierrita Gas Pipeline LLC | 7 |  |  | 7 |  |  | 7 |
Gulf Coast Express LLC | 2 |  |  | — |  |  | — |
All others | 4 |  |  | 23 |  |  | 26 |
Total earnings from equity investments | $ | 887 |  |  | $ | 578 |  |  | $ | 497 |
Amortization of excess costs | (95 | ) |  | (61 | ) |  | (59 | )
_______
(a) | 2018 amount includes our share of earnings recognized due to a ruling by an arbitration panel affecting a customer contract.
(b) | 2017 and 2016 amounts include $(4) million and $9 million, respectively, representing our share of a non-cash impairment charge (pre-tax) recorded by Cortez Pipeline Company.
(c) | 2017 amount includes non-cash impairment charges of $10 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 |  | 2018 |  | 2017 |  | 2016
Revenues |  | $ | 5,129 |  |  | $ | 4,703 |  |  | $ | 4,084 |
Costs and expenses |  | 3,371 |  |  | 3,398 |  |  | 3,056 |
Net income |  | $ | 1,758 |  |  | $ | 1,305 |  |  | $ | 1,028 |
|  | December 31,
Balance Sheet |  | 2018 |  | 2017
Current assets |  | $ | 1,496 |  |  | $ | 956 |
Non-current assets |  | 23,396 |  |  | 22,344 |
Current liabilities |  | 2,715 |  |  | 1,241 |
Non-current liabilities |  | 9,555 |  |  | 10,605 |
Partners’/owners’ equity |  | 12,622 |  |  | 11,454 |

X
- 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
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration