Equity Investees

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 or be less than 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, 2016 and December 31, 2015, the unamortized excess cost amounts totaled $402.1 million and $414.0 million, respectively. We amortize the excess cost as a reduction in equity earnings in a manner similar to depreciation.

As part of our 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 our 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.

In the first quarter of 2016, we purchased the remaining 50% interest in Deepwater Gateway, LLC for approximately $26.0 million (including adjustments for working capital), so we now own 100% of that entity. Consequently, we now consolidate Deepwater Gateway, LLC instead of accounting for our interest under the equity method.

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,
	2016			2015			2016			2015
Genesis’ share of operating earnings	$	16,444		$	17,944		$	47,281		$	57,607
Amortization of excess purchase price	(3,956		)	(3,684		)	(11,919		)	(9,167		)
Net equity in earnings	$	12,488		$	14,260		$	35,362		$	48,440
Distributions received	$	21,551		$	23,522		$	66,180		$	73,823

The following tables present the unaudited balance sheet and income statement information (on a 100% basis) for Poseidon (which is our most significant equity investment):



	September 30, 2016		December 31, 2015
BALANCE SHEET DATA:
Assets
Current assets	$	14,662	$	18,507
Fixed assets, net	236,509		248,059
Other assets	929		1,133
Total assets	$	252,100	$	267,699
Liabilities and equity
Current liabilities	$	23,135	$	22,456
Other liabilities	211,066		203,514
Equity	17,899		41,729
Total liabilities and equity	$	252,100	$	267,699



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
INCOME STATEMENT DATA:
Revenues	$	31,219	$	30,830	$	90,658	$	92,684
Operating income	$	23,107	$	23,839	$	68,166	$	71,122
Net income	$	21,921	$	22,860	$	64,670	$	67,804

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 substantially all of Poseidon's 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.