Investments Investments (Notes)

12 Months Ended

Dec. 31, 2020

Equity Method Investments and Joint Ventures Disclosure [Text Block]

7. 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. The following table provides details on our investments as of December 31, 2020 and 2019, and our earnings (loss) from these respective investments for the years ended December 31, 2020, 2019 and 2018:


	Ownership Interest	Equity Investments				Earnings (Loss) from Equity Investments
	December 31,	December 31,				Year Ended December 31,
	2020	2020		2019		2020		2019		2018
		(In millions)
Citrus Corporation	50%	$	1,849	$	1,856	$	165	$	157	$	169
SNG	50%	1,532		1,473		129		140		141
NGPL Holdings LLC(a)	50%	803		721		116		81		66
Gulf Coast Express Pipeline LLC	34%	638		656		90		37		2
Permian Highway Pipeline	27%	632		309		—		—		—
MEP	50%	416		439		(6)		15		31
Gulf LNG(b)	50%	361		361		19		17		(61)
Products (SE) Pipe Line Corporation(c)	51%	357		348		43		58		55
Utopia Holding LLC	50%	329		335		20		20		14
EagleHawk	25%	275		285		17		17		7
Watco Companies, LLC	(d)	70		185		16		19		21
Cortez Pipeline Company	53%	25		26		24		35		36
FEP	50%	16		102		70		59		55
Ruby(e)	(f)	1		41		15		(609)		26
All others		613		622		62		55		55
Total investments		$	7,917	$	7,759	$	780	$	101	$	617
Amortization of excess cost						$	(140)	$	(83)	$	(95)

(a)Investment in NGPL Holdings LLC (NGPL Holdings) includes a related party promissory note receivable with a principal amount of $500 million as of December 31, 2020. On October 1, 2019, NGPL Holdings issued a non-cash related party promissory note with a principal amount of $500 million as a capital distribution. The related party promissory note accrues interest at 6.75% and is payable quarterly. For the years ended December 31, 2020 and 2019, we recognized $34 million and $8 million, respectively, of interest within “Earnings from equity investments” on our accompanying consolidated statements of income.

(b)The loss from Gulf LNG for the year ended December 31, 2018 includes our share of earnings recognized due to a ruling by an arbitration panel affecting a customer contract. 2018 amount also includes a non-cash impairment charge of $270 million (pre-tax) driven by this ruling. See Note 3 for more information.

(c)Previously known as Plantation Pipe Line Company.

(d)We hold a preferred equity investment in Watco Companies, LLC (Watco). We own 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 3.00% per quarter. We do not hold any voting powers, but the class does provide us certain approval rights, including the right to appoint one of the members to Watco’s board of managers. During the fourth quarter of 2020, we sold our Preferred A and common equity investment in Watco, and recognized a pre-tax gain of $10 million within “Other, net” on our accompanying consolidated statement of income for the year ended December 31, 2020.

(e)The loss from Ruby for the year ended December 31, 2019 amount includes a non-cash impairment charge of $650 million (pre-tax) related to our investment. See Note 3 for more information.

(f)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.

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


	Year Ended December 31,
Income Statement	2020		2019		2018
	(In millions)
Revenues	$	5,076	$	4,906	$	4,898
Costs and expenses	4,249		3,508		3,245
Net income	$	827	$	1,398	$	1,653


	December 31,
Balance Sheet	2020		2019
	(In millions)
Current assets	$	1,013	$	1,195
Non-current assets	25,069		24,743
Current liabilities	1,787		2,125
Non-current liabilities	9,734		9,670
Partners’/owners’ equity	14,561		14,143