Equity Investees

9 Months Ended

Sep. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

We account for our ownership in our joint ventures under the equity method of accounting. The price we pay to acquire an ownership interest in a company may exceed the underlying book value of the capital accounts we acquire. Such excess cost amounts are included within the carrying values of our equity investees. At September 30, 2015 and December 31, 2014, the unamortized excess cost amounts totaled $419.6 million and $215.4 million, respectively. We amortize the excess cost as a reduction in equity earnings in a manner similar to depreciation.

As part of the Enterprise acquisition, we increased our ownership interest in each of Cameron Highway Oil Pipeline Company ("CHOPS") and Southeast Keathley Canyon Pipeline Company, LLC ("SEKCO") from 50% to 100%. Consequently, these entities were reflected as equity investees until July 24, 2015, at which point they became fully consolidated wholly owned subsidiaries.

Also, as part of the Enterprise acquisition, our ownership interest in Poseidon Oil Pipeline Company, LLC ("Poseidon") increased from 28% to 64%. We also acquired a 50% ownership interest in Deepwater Gateway, LLC and a 25.7% interest in Neptune Pipeline Company, LLC. These additional interests are accounted for as equity investments from the acquisition date of July 24, 2015.

The following table presents information included in our Unaudited Condensed Consolidated Financial Statements related to our equity investees.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Genesis’ share of operating earnings	$	17,944		$	17,600		$	57,607		$	35,506
Amortization of excess purchase price	(3,684		)	(2,583		)	(9,167		)	(7,749		)
Net equity in earnings	$	14,260		$	15,017		$	48,440		$	27,757
Distributions received	$	23,522		$	21,758		$	73,823		$	49,383

The following tables present the combined unaudited balance sheet and income statement information (on a 100% basis) of our equity investees:



	September 30, 2015		December 31, 2014
BALANCE SHEET DATA:
Assets
Current assets	$	34,168	$	42,135
Fixed assets, net	546,311		1,015,305
Other assets	2,776		4,369
Total assets	$	583,255	$	1,061,809
Liabilities and equity
Current liabilities	$	10,718	$	25,369
Other liabilities	222,729		202,613
Equity	349,808		833,827
Total liabilities and equity	$	583,255	$	1,061,809



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
INCOME STATEMENT DATA:
Revenues	$	73,281	$	74,801	$	227,924	$	171,065
Operating income	$	45,496	$	46,096	$	150,017	$	99,199
Net income	$	34,195	$	44,881	$	136,342	$	96,402

Poseidon's revolving credit facility

Borrowings under Poseidon’s revolving credit facilities, which was amended and restated in February 2015, are primarily used to fund spending on capital projects. The February 2015 credit facility is non-recourse to Poseidon’s owners and secured by its assets. The February 2015 credit facility contains customary covenants such as restrictions on debt levels, liens, guarantees, mergers, sale of assets and distributions to owners. A breach of any of these covenants could result in acceleration of the maturity date of Poseidon’s debt. Poseidon was in compliance with the terms of its credit agreement for all periods presented in these Unaudited Combined Financial Statements.