Equity Investees

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Equity Investees

Equity Investees

We account for our ownership in certain of 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 June 30, 2023 and December 31, 2022, the unamortized excess cost amounts totaled $298.5 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Genesis’ share of operating earnings	$	18,377	$	18,138	$	39,496	$	34,148
Amortization of differences attributable to Genesis’ carrying value of equity investments	(3,566)		(3,566)		(7,132)		(7,132)
Net equity in earnings	$	14,811	$	14,572	$	32,364	$	27,016
Distributions received(1)	$	20,678	$	18,732	$	44,512	$	37,750

(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,” and its pipeline and associated assets, the “Poseidon pipeline”) (which we own 64% of and is our most significant equity investment):

	June 30, 2023		December 31, 2022
BALANCE SHEETS DATA:
Assets
Current assets	$	23,888	$	27,878
Fixed assets, net	145,726		147,505
Other assets	16,394		13,419
Total assets	$	186,008	$	188,802
Liabilities and equity
Current liabilities	$	11,800	$	10,087
Other liabilities	238,917		236,813
Equity (Deficit)	(64,709)		(58,098)
Total liabilities and equity	$	186,008	$	188,802

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
STATEMENTS OF OPERATIONS DATA:
Revenues	$	39,251	$	35,380	$	80,146	$	66,569
Operating income	$	29,052	$	25,856	$	61,003	$	47,809
Net income	$	25,313	$	24,441	$	53,989	$	45,348

Poseidon’s Revolving Credit FacilityBorrowings under Poseidon’s revolving credit facility, which was amended and restated on June 1, 2023 (the “June 2023 credit facility”), are primarily used to fund spending on capital projects. The June 2023 credit facility, which matures on June 1, 2027, is non-recourse to Poseidon’s owners and secured by its assets. The June 2023 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.