Equity Investees

3 Months Ended

Mar. 31, 2023

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 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 March 31, 2023 and December 31, 2022, the unamortized excess cost amounts totaled $302.1 million and $305.6 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 March 31,
	2023		2022
Genesis’ share of operating earnings	$	21,119	$	16,010
Amortization of differences attributable to Genesis’ carrying value of equity investments	(3,566)		(3,566)
Net equity in earnings	$	17,553	$	12,444
Distributions received(1)	$	23,834	$	19,018

(1) Includes distributions attributable to the period and received during or within 15 days following the 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):


	March 31, 2023		December 31, 2022
BALANCE SHEETS DATA:
Assets
Current assets	$	22,904	$	27,878
Fixed assets, net	147,223		147,505
Other assets	13,760		13,419
Total assets	$	183,887	$	188,802
Liabilities and equity
Current liabilities	$	217,582	$	10,087
Other liabilities	27,727		236,813
Equity (Deficit)	(61,422)		(58,098)
Total liabilities and equity	$	183,887	$	188,802


	Three Months Ended March 31,
	2023		2022
STATEMENTS OF OPERATIONS DATA:
Revenues	$	40,895	$	31,189
Operating income	$	31,951	$	21,953
Net income	$	28,676	$	20,907

Poseidon’s Revolving Credit FacilityBorrowings 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, which matures on March 29, 2024, is non-recourse to Poseidon’s owners and secured by its assets. 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.