v3.20.1

Investments in Non-Controlled Entities (Tables) | 3 Months Ended
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Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments | Our investments in non-controlled entities at March 31, 2020 were comprised of:
Entity |  | Ownership Interest
BridgeTex Pipeline Company, LLC (“BridgeTex”) |  | 30%
Double Eagle Pipeline LLC (“Double Eagle”) |  | 50%
HoustonLink Pipeline Company, LLC (“HoustonLink”) |  | 50%
MVP Terminalling, LLC (“MVP”) |  | 50%
Powder Springs Logistics, LLC (“Powder Springs”) |  | 50%
Saddlehorn Pipeline Company, LLC (“Saddlehorn”) |  | 30%
Seabrook Logistics, LLC (“Seabrook”) |  | 50%
Texas Frontera, LLC (“Texas Frontera”) |  | 50%
In February 2020, we sold a 10% interest in Saddlehorn to an affiliate of Black Diamond Gathering LLC, which is majority-owned by Noble Midstream Partners LP, reducing our ongoing investment in Saddlehorn to a 30% interest. We received $79.9 million in cash from the sale, and we recorded a gain of $12.9 million on our consolidated statements of income. We serve as operator of BridgeTex, HoustonLink, MVP, Powder Springs, Saddlehorn, Texas Frontera and the pipeline activities of Seabrook. We receive fees for management services as well as reimbursement or payment to us for certain direct operational payroll and other overhead costs. The management fees we receive are reported as affiliate management fee revenue on our consolidated statements of income. Cost reimbursements we receive from these entities in connection with our operating services are included as reductions to costs and expenses on our consolidated statements of income and totaled $1.5 million and $1.2 million during the three months ended March 31, 2019 and 2020, respectively. We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in thousands):
|  | Three Months Ended March 31,
|  | 2019 |  | 2020
Transportation and terminals revenue: |  |  |  |
BridgeTex, pipeline capacity and storage |  | $ | 10,145 |  |  | $ | 10,748 |
Double Eagle, throughput revenue |  | $ | 1,659 |  |  | $ | 1,600 |
Saddlehorn, storage revenue |  | $ | 552 |  |  | $ | 566 |
Operating expenses: |  |  |  |
Seabrook, storage lease and ancillary services |  | $ | 6,909 |  |  | $ | 6,899 |
Other operating income: |  |  |  |
Seabrook, gain on sale of air emission credits |  | $ | — |  |  | $ | 1,410 |
We also received a payment of $1.1 million in first quarter 2020 from BridgeTex for the loss allowance on our capacity lease contract. Our consolidated balance sheets reflected the following balances related to our investments in non-controlled entities (in thousands):
|  | December 31, 2019
|  | Trade Accounts Receivable |  | Other Accounts Receivable |  | Other Accounts Payable |  | Long-Term Receivables
BridgeTex |  | $ | 392 |  |  | $ | 26 |  |  | $ | — |  |  | $ | — |
Double Eagle |  | $ | 445 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
HoustonLink |  | $ | 60 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
MVP |  | $ | — |  |  | $ | 418 |  |  | $ | — |  |  | $ | — |
Powder Springs |  | $ | 161 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,006 |
Saddlehorn |  | $ | — |  |  | $ | 126 |  |  | $ | — |  |  | $ | — |
Seabrook |  | $ | 941 |  |  | $ | — |  |  | $ | 1,349 |  |  | $ | — |
|  | March 31, 2020
|  | Trade Accounts Receivable |  | Other Accounts Receivable |  | Other Accounts Payable |  | Long-Term Receivables
BridgeTex |  | $ | 366 |  |  | $ | 17 |  |  | $ | — |  |  | $ | — |
Double Eagle |  | $ | 592 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
HoustonLink |  | $ | 24 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
MVP |  | $ | — |  |  | $ | 690 |  |  | $ | — |  |  | $ | — |
Powder Springs |  | $ | 307 |  |  | $ | 310 |  |  | $ | — |  |  | $ | 7,330 |
Saddlehorn |  | $ | — |  |  | $ | 126 |  |  | $ | — |  |  | $ | — |
Seabrook |  | $ | 1,216 |  |  | $ | — |  |  | $ | 1,695 |  |  | $ | — |
We entered into a long-term terminalling and storage contract with Seabrook for exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast (see Note 7 – Leases for more details regarding this lease). The financial results from MVP, Powder Springs and Texas Frontera are included in our refined products segment and the financial results from BridgeTex, Double Eagle, HoustonLink, Saddlehorn and Seabrook are included in our crude oil segment, each as earnings of non-controlled entities. A summary of our investments in non-controlled entities follows (in thousands):
Investments at 12/31/2019 |  | $ | 1,240,551 |
Additional investment |  | 28,325 |
Sale of ownership interest in Saddlehorn |  | (66,990 | )
Earnings of non-controlled entities: |  |
Proportionate share of earnings |  | 44,118 |
Amortization of excess investment and capitalized interest |  | (458 | )
Earnings of non-controlled entities |  | 43,660 |
Less: |  |
Distributions from operations of non-controlled entities |  | 54,743 |
Investments at 3/31/2020 |  | $ | 1,190,803 |

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- Definition Tabular disclosure of equity method investments including, but not limited to, name of each investee or group of investments, percentage ownership, difference between recorded amount of an investment and the value of the underlying equity in the net assets, and summarized financial information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571 + Details
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