Equity Investees

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity Investees

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, 2022 and December 31, 2021, the unamortized excess cost amounts totaled $309.2 million and $319.9 million, respectively. We amortize the differences in carrying value as changes in equity earnings.

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,
	2022		2021		2022		2021
Genesis’ share of operating earnings	$	16,802	$	14,174	$	50,950	$	56,801
Amortization of differences attributable to Genesis’ carrying value of equity investments	(3,566)		(3,873)		(10,698)		(11,618)
Net equity in earnings	$	13,236	$	10,301	$	40,252	$	45,183
Distributions received(1)	$	18,483	$	17,443	$	56,233	$	68,873

(1) Includes distributions attributable to the period and received during or promptly following such period.

The following tables present the unaudited balance sheets and statements of operations information (on a 100% basis) for Poseidon Oil Pipeline Company, L.L.C. (“Poseidon”) (which we own 64% of and is our most significant equity investment):

	September 30, 2022		December 31, 2021
BALANCE SHEETS DATA:
Assets
Current assets	$	27,448	$	17,827
Fixed assets, net	150,416		160,379
Other assets	11,958		6,186
Total assets	$	189,822	$	184,392
Liabilities and equity
Current liabilities	$	12,667	$	7,668
Other liabilities	234,401		231,970
Equity (Deficit)	(57,246)		(55,246)
Total liabilities and equity	$	189,822	$	184,392

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
STATEMENTS OF OPERATIONS DATA:
Revenues	$	38,322	$	27,262	$	104,891	$	103,432
Operating income	$	27,731	$	18,762	$	75,540	$	75,559
Net income	$	25,502	$	17,718	$	70,850	$	72,473

Poseidon’s Revolving Credit Facility

Borrowings under Poseidon’s revolving credit facility, which was amended and restated in March 2019, are primarily used to fund spending on capital projects. The March 2019 credit facility is non-recourse to Poseidon’s owners and secured by substantially all of Poseidon’s assets and has a maturity date of March 2024. The March 2019 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 Condensed Consolidated Financial Statements.