Advances to and Investments in Unconsolidated Affiliates

12 Months Ended

Dec. 31, 2020

INVESTMENTS IN UNCONSOLIDATED AFFILIATES:

Citrus

ETO owns CrossCountry Energy, LLC, a wholly-owned subsidiary of ETO, which in turn owns a 50% interest in Citrus. The other 50% interest in Citrus is owned by a subsidiary of KMI. Citrus owns 100% of FGT, an approximately 5,362-mile natural gas pipeline system that originates in Texas and delivers natural gas to the Florida peninsula. Our investment in Citrus is reflected in our interstate transportation and storage segment.

FEP

ETO has a 50% interest in FEP which owns the Fayetteville Express Pipeline, an approximately 185-mile natural gas pipeline that originates in Conway County, Arkansas, continues eastward through White County, Arkansas and terminates at an interconnect with Trunkline in Panola County, Mississippi. ETO’s investment in FEP is reflected in the interstate transportation and storage segment.

MEP

ETO owns a 50% interest in MEP, which owns the Midcontinent Express Pipeline, an approximately 500-miles natural gas pipeline that extends from Southeast Oklahoma, across Northeast Texas, Northern Louisiana and Central Mississippi to an interconnect with the Transcontinental natural gas pipeline system in Butler, Alabama. ETO’s investment in MEP is reflected in the interstate transportation and storage segment.

White Cliffs

We own a 51% interest in White Cliffs, which was acquired by ET in the SemGroup acquisition and contributed to ETO in January 2020. White Cliffs consists of two parallel, 12-inch common carrier pipelines: one crude oil pipeline and one NGL pipeline. These pipelines transport crude and NGLs from Platteville, Colorado to Cushing, Oklahoma. The Partnership recorded an impairment of its investment in White Cliffs of $129 million during the year ended December 31, 2020 due to a decrease in projected future revenues and cash flows as a result of the overall market demand decline that occurred subsequent to the SemGroup acquisition and related purchase price allocation in December 2019.

The carrying values of the Partnership’s investments in unconsolidated affiliates as of December 31, 2020 and 2019 were as follows:


	December 31,
	2020		2019
Citrus	$	1,867	$	1,876
FEP	4		218
MEP	406		429
White Cliffs	274		436
Other	509		501
Total	$	3,060	$	3,460

The following table presents equity in earnings (losses) of unconsolidated affiliates:


	Years Ended December 31,
	2020		2019		2018
Citrus	$	162	$	148	$	141
FEP (1)	(139)		59		55
MEP	(6)		15		31
White Cliffs	20		4		—
Other	82		76		117
Total equity in earnings of unconsolidated affiliates	$	119	$	302	$	344

(1) For the year ended December 31, 2020, equity in earnings (losses) of unconsolidated affiliates includes the impact of non-cash impairments recorded by FEP, which reduced the Partnership’s equity in earnings by $208 million.

Summarized Financial Information

The following tables present aggregated selected balance sheet and income statement data for our unconsolidated affiliates, Citrus, FEP, MEP, and White Cliffs (on a 100% basis) for all periods presented, except as noted below:


	December 31,
	2020		2019
Current assets	$	227	$	247
Property, plant and equipment, net	7,339		7,680
Other assets	58		40
Total assets	$	7,624	$	7,967

Current liabilities	$	600	$	738
Non-current liabilities	3,298		3,242
Equity	3,726		3,987
Total liabilities and equity	$	7,624	$	7,967


	Years Ended December 31,
	2020		2019		2018
Revenue	$	1,243	$	1,192	$	1,249
Operating income	6		683		723
Net income (loss)	(199)		443		460

In addition to the equity method investments described above we have other equity method investments which are not significant to our consolidated financial statements.