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Equity Method Investments | 12 Months Ended
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Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments | Equity Method Investments The Partnership owns a 33% membership interest in Red River Pipeline Company LLC ("Red River"), a joint venture operated with Plains Pipeline, L.P, which owns and operates a crude oil pipeline running from Cushing, Oklahoma to Longview, Texas. Additionally, we have two pipeline joint ventures, in which we own a 50% membership interest in the entity formed with an affiliate of Plains All American Pipeline, L.P. ("CP LLC") to operate one of these pipeline systems and a 33% membership interest in the entity formed with Andeavor Logistics RIO Pipeline LLC ("Andeavor Logistics") to operate the other pipeline system. On August 5, 2024, the Partnership acquired Permian Pipeline Holdings, LLC, which holds 50% equity interests in W2W Holdings, from a wholly owned subsidiary of Delek Holdings. Our interest in W2W Holdings includes a 15.6% indirect interest in the Wink to Webster joint venture, and related joint venture indebtedness. W2W Holdings was originally formed by Delek Holdings and MPLX Operations LLC to obtain financing and fund capital calls associated with its collective and contributed interests in Wink to Webster. Wink to Webster owns and operates a long-haul crude oil pipeline system with origin points at Wink and Midland in the Permian Basin and delivery points at multiple Houston area locations. We determined that W2W Holdings is a VIE. While we have the ability to exert significant influence through participation in board and management committees, we are not the primary beneficiary since we do not have a controlling financial interest in W2W Holdings, and no single party has the power to direct the activities that most significantly impact W2W Holdings' economic performance. Distributions received from WWP are first applied to service the debt of W2W Holdings wholly owned finance LLC, with excess distributions made to the W2W Holdings members as provided for in the W2W Holdings LLC Agreement and as allowed for under its debt agreements. The obligations of the W2W Holdings members under the W2W Holdings LLC Agreement are guaranteed by the parents of the member entities. As of December 31, 2024, except for the guarantee of member obligations under the joint venture, we do not have other guarantees with or to W2W Holdings, nor any third-party associated with W2W Holdings contracted work. The Partnership's maximum exposure to any losses incurred by W2W Holdings is limited to its investment. Summarized financial information for W2W Holdings on a 100% basis is shown below (in thousands):
| As of December 31, 2024 |  |
Current Assets | $ | 193 |  |  |
Non-current Assets | $ | 702,910 |  |  |
Current liabilities | $ | 56,074 |  |  |
Non-current liabilities | $ | 481,189 |  |  |
|  |  | Year Ended December 31,
|  |  |  |  | 2024 |  |  |  |
Revenues |  |  |  |  | $ | 88,603 |  |  |  |  |
Gross profit |  |  |  |  | $ | 88,603 |  |  |  |  |
Operating income |  |  |  |  | $ | 88,293 |  |  |  |  |
Net income |  |  |  |  | $ | 59,442 |  |  |  |  |
Combined summarized financial information for the three remaining joint ventures on a 100% basis is shown below (in thousands):
| As of December 31, 2024 |  | As of December 31, 2023
Current Assets | $ | 44,655 |  |  | $ | 55,948 |
Non-current Assets | $ | 588,441 |  |  | $ | 607,002 |
Current liabilities | $ | 9,889 |  |  | $ | 8,994 |
Non-current liabilities | $ | 572 |  |  | $ | 63 |
|  |  | Years Ended December 31,
|  |  |  |  | 2024 |  | 2023 |  | 2022
Revenues |  |  |  |  | $ | 134,736 |  |  | $ | 139,699 |  |  | $ | 140,634 |
Gross profit |  |  |  |  | $ | 85,955 |  |  | $ | 89,132 |  |  | $ | 88,575 |
Operating income |  |  |  |  | $ | 82,708 |  |  | $ | 84,349 |  |  | $ | 85,096 |
Net income |  |  |  |  | $ | 84,131 |  |  | $ | 85,636 |  |  | $ | 85,311 |
The Partnership's investment balances in these joint ventures were as follows (in thousands):
| As of December 31, 2024 |  | As of December 31, 2023
Red River | $ | 136,455 |  |  | $ | 141,091 |
W2W Holdings | 86,117 |  |  | — |
CP LLC | 59,252 |  |  | 61,273 |
Andeavor Logistics | 35,328 |  |  | 38,973 |
Total Equity Method Investments | $ | 317,152 |  |  | $ | 241,337 |

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- 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://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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