Investing Activities

12 Months Ended

Dec. 31, 2023

Note 8 – Investing Activities

Investments


	Ownership Interest at December 31, 2023	December 31,
		2023		2022
		(Millions)
Equity method:
Appalachia Midstream Investments	(1)	$	2,886	$	2,975
Blue Racer	50%	398		383
OPPL	50%	387		386
Discovery	60%	361		345
Gulfstream	50%	210		220
Laurel Mountain	69%	184		205
RMM (2)	100%	—		395
Other	Various	188		139
		4,614		5,048
Other		23		17
		$	4,637	$	5,065

___________

(1)Includes equity-method investments in multiple gathering systems in the Marcellus Shale region with an approximate average 66 percent interest.

(2)RMM is a wholly owned subsidiary as of November 30, 2023. See Note 3 – Acquisitions and Divestitures.

Basis differential

The carrying value of our Appalachia Midstream Investments exceeds our portion of the underlying net assets by approximately $1.1 billion at December 31, 2023 and 2022. These differences were assigned at the acquisition date to property, plant, and equipment and customer relationship intangible assets. Certain of our other equity-method investments have a carrying value less than our portion of the underlying equity in the net assets primarily due to other than temporary impairments that we have recognized but that were not required to be recognized in the investees’ financial statements. These differences total approximately $773 million and $1.1 billion at December 31, 2023 and 2022, respectively, and were assigned to property, plant, and equipment and customer relationship intangible assets. Differences in the carrying value of our equity-method investments and our portion of the equity in the underlying net assets are generally amortized over the remaining useful lives of the associated underlying assets and included in Equity earnings (losses) within our Consolidated Statement of Income.

Purchases of and contributions to equity-method investments

We generally fund our portion of significant expansion or development projects of these investees through additional capital contributions. These transactions increased the carrying value of our investments and included:


	Year Ended December 31,
	2023		2022		2021
	(Millions)
Appalachia Midstream Investments	$	59	$	83	$	84
Discovery	40		41		—
Aux Sable Liquid Products LP	38		—		—
Cardinal Pipeline Company, LLC	—		16		—
Gulfstream	—		14		26




Other	4		12		5
	$	141	$	166	$	115

Other investing income (loss) – net

The following table presents certain items reflected in Other investing income (loss) – net in our Consolidated Statement of Income:


	Year Ended December 31,
	2023		2022		2021
			(Millions)
Interest income	$	79	$	15	$	7
Gain on remeasurement of RMM investment (Note 3)	30		—		—
Other	(1)		1		—
Other investing income (loss) – net	$	108	$	16	$	7

Dividends and distributions

The organizational documents of entities in which we have an equity-method investment generally require distribution of available cash to members on at least a quarterly basis. These transactions reduced the carrying value of our investments and included:


	Year Ended December 31,
	2023		2022		2021
	(Millions)
Appalachia Midstream Investments	$	405	$	415	$	433
Gulfstream	98		89		90
Blue Racer	62		49		47
OPPL	56		34		26
RMM	49		52		45
Discovery	49		49		44
Laurel Mountain	42		112		33
Other	35		65		39
	$	796	$	865	$	757

Summarized Financial Position and Results of Operations of All Equity-Method Investments


	December 31,
	2023		2022
	(Millions)
Assets (liabilities):
Current assets	$	669	$	964
Noncurrent assets	11,058		12,701
Current liabilities	(358)		(632)
Noncurrent liabilities	(3,619)		(3,789)


	Year Ended December 31,
	2023		2022		2021
	(Millions)
Gross revenue	$	3,714	$	5,520	$	4,688
Operating income	966		1,268		1,191
Net income	748		1,102		1,006