On August 6, 2018, we completed the 2018 Drop Down for total consideration of $1.55 billion. These assets include gathering, storage and transportation assets in the Permian Basin; legacy Western Refining, Inc. assets and associated crude terminals; the majority of Andeavor’s remaining refining terminalling, transportation and storage assets; and equity method investments in Andeavor Logistics Rio Pipeline LLC (“ALRP”), Minnesota Pipe Line Company, LLC, and PNAC, LLC (“PNAC”). In addition, the Conan Crude Oil Gathering System and the Los Angeles Refinery Interconnect Pipeline (“LARIP”) were transferred at cost plus incurred interest.

On May 1, 2018, we completed our acquisition of the SLC Core Pipeline System from Plains All American Pipeline, L.P. for total consideration of $180 million. The system consists of pipelines that transport crude oil to another third-party pipeline system that supplies Salt Lake City area refineries, including Marathon’s Salt Lake City refinery. We financed the acquisition using our Revolving Credit Facility. This acquisition is not material to our condensed consolidated financial statements and its operating results are reported in our Terminalling and Transportation segment.

As discussed further in Note 1, we refer to the historical results of the assets acquired from our Sponsor in the 2018 Drop Down (prior to August 6, 2018) as our “Predecessors.” The following table presents our results of operations disaggregated to present results relating to us and the Predecessors for the assets acquired from our Sponsor and the total amounts included in our combined financial statements for the three and six months ended June 30, 2018.



	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	Combined			Andeavor Logistics			Predecessors			Combined			Andeavor Logistics			Predecessors
Revenues
Affiliate	$	389		$	381		$	8		$	716		$	699		$	17
Third-party	180			176			4			399			393			6
Total Revenues	569			557			12			1,115			1,092			23
Costs and Expenses
NGL expense (exclusive of items shown separately below)	45			45			—			93			93			—
Operating expenses (exclusive of depreciation and amortization)	221			201			20			422			391			31
Depreciation and amortization expenses	93			83			10			182			163			19
General and administrative expenses	29			25			4			60			52			8
Loss on asset disposals and impairments	1			1			—			1			1			—
Operating Income (Loss)	180			202			(22		)	357			392			(35		)
Interest and financing costs, net	(60		)	(58		)	(2		)	(115		)	(112		)	(3		)
Equity in earnings of equity method investments	10			3			7			18			5			13
Other income, net	2			1			1			3			2			1
Net Earnings (Loss)	$	132		$	148		$	(16	)	$	263		$	287		$	(24	)

Loss attributable to Predecessors	$	16		$	—		$	16		$	24		$	—		$	24
Net Earnings Attributable to Partners	148			148			—			287			287			—
Preferred unitholders’ interest in net earnings	(10		)	(10		)	—			(24		)	(24		)	—
Limited Partners’ Interest in Net Earnings	$	138		$	138		$	—		$	263		$	263		$	—