Advances to and Investments in Unconsolidated Affiliates

12 Months Ended

Dec. 31, 2022

INVESTMENTS IN UNCONSOLIDATED AFFILIATES:

Description of Investments

Following is a summary of the Partnership’s significant unconsolidated investees.

Citrus

Energy Transfer owns a 50% interest in Citrus. 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.

MEP

Energy Transfer owns a 50% interest in MEP, which owns the Midcontinent Express Pipeline, an approximately 500-mile 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. Our investment in MEP is reflected in the interstate transportation and storage segment.

White Cliffs

Energy Transfer owns a 51% interest in White Cliffs, which 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.

Explorer

Energy Transfer owns a 15% membership interest in Explorer, which consists of a 1,850-mile pipeline which originates from refining centers in Beaumont, Port Arthur, and Houston, Texas and extends to Chicago, Illinois. Our investment in Explorer is reflected in our NGL and refined products transportation and services segment.

Summary of Balances Related to Unconsolidated Affiliates

The carrying values of the Partnership’s investments in unconsolidated affiliates as of December 31, 2022 and 2021 were as follows:


	December 31,
	2022		2021
Citrus	$	1,800	$	1,792

MEP	360		378
White Cliffs	218		245
Explorer	69		71
Other	446		461
Total	$	2,893	$	2,947

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


	Years Ended December 31,
	2022		2021		2020
Citrus	$	141	$	157	$	162

MEP	10		(17)		(6)
White Cliffs	(8)		—		20
Explorer	25		24		17
Other (1)	89		82		(74)
Total equity in earnings of unconsolidated affiliates	$	257	$	246	$	119

(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, MEP, White Cliffs and Explorer (on a 100% basis) for all periods presented:


	December 31,
	2022		2021
Current assets	$	311	$	319
Property, plant and equipment, net	7,722		7,803
Other assets	86		88
Total assets	$	8,119	$	8,210

Current liabilities	$	291	$	547
Non-current liabilities	4,347		4,110
Equity	3,481		3,553
Total liabilities and equity	$	8,119	$	8,210


	Years Ended December 31,
	2022		2021		2020
Revenue	$	1,518	$	1,393	$	1,405
Operating income	704		684		732
Net income	463		446		480

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