Equity Investments

We have a 20% ownership interest in Independence Hub that we account for using the equity method of accounting. Independence Hub owns the “Independence Hub” platform located in Mississippi Canyon Block 920 in a water depth of 8,000 feet. We previously had a 50% ownership interest in Deepwater Gateway, which owns and operates a tension leg platform production hub primarily for Anadarko Petroleum Corporation’s Marco Polo field in the Deepwater Gulf of Mexico. Our Production Facilities segment includes our investment in Independence Hub that is accounted for under the equity method, and previously included our former ownership interest in Deepwater Gateway.

In July 2015, Enterprise Products Partners L.P. (“Enterprise”) sold its offshore Gulf of Mexico pipelines and services business to Genesis Energy, L.P. (“Genesis”) for approximately $1.5 billion. Enterprise’s ownership interests in both Deepwater Gateway and Independence Hub were included in the sale. In December 2015, we were notified by Genesis that the operator of the facility no longer forecasted utilization of the “Independence Hub” platform and planned to turn over the platform for decommissioning. In December 2015, Independence Hub recorded an impairment charge of $343.3 million to reduce the carrying amount of the platform assets to their estimated fair value of zero. At December 31, 2016 and 2015, Independence Hub’s estimated asset retirement obligations amounted to $52.5 million and $42.1 million, respectively, reflecting the estimated costs to decommission the platform. Since we are committed to providing the necessary level of financial support to enable Independence Hub to pay its obligations as they become due, we recorded liabilities of $10.2 million and $8.3 million at December 31, 2016 and 2015, respectively, for our share of the estimated obligations, net of remaining working capital. These liabilities are reflected in “Other non-current liabilities” in the accompanying consolidated balance sheets. For the year ended December 31, 2016, we recorded losses totaling $2.2 million to account for our share of losses from Independence Hub. For the year ended December 31, 2015, we recorded losses totaling $74.9 million to account for our 20% share of losses from Independence Hub and to write off the remaining capitalized interest of $3.6 million and a $1.0 million participation fee that we paid in 2004. These losses included our share of the impairment charge that Independence Hub recorded in December 2015.

Additionally in December 2015, Deepwater Gateway recorded an impairment charge of $96.7 million to reduce the carrying amount of its long-lived assets to their estimated fair value of $70.8 million. Deepwater Gateway’s estimated asset retirement obligations as of December 31, 2015 amounted to $20.8 million. For the year ended December 31, 2015, we recorded losses totaling $49.4 million to account for our 50% share of losses from Deepwater Gateway and to write off the remaining capitalized interest of $1.2 million. These losses included our share of an impairment charge that Deepwater Gateway recorded in December 2015. Our investment in Deepwater Gateway totaled $26.2 million as of December 31, 2015. In February 2016, we received a cash distribution of $1.2 million and sold our ownership interest in Deepwater Gateway to a subsidiary of Genesis for $25 million.

We received the following distributions from our equity method investments (in thousands):



	Year Ended December 31,
	2016		2015		2014

Deepwater Gateway	$	1,200	$	5,200	$	6,150
Independence Hub	—		1,800		2,640
Total	$	1,200	$	7,000	$	8,790

Equity method investments were immaterial to our 2016 consolidated financial results. The summarized aggregated financial information related to our equity method investments for 2014 and 2015 is as follows (in thousands):



	Year Ended December 31,
	2015			2014

Revenues	$	14,791		$	23,284
Operating income (loss)	(448,138		)	411
Net income (loss)	(448,138		)	411



	December 31,
	2015

Current assets	$	3,181
Non-current assets	70,812
Current liabilities	180
Non-current liabilities	62,951