Investments in Unconsolidated Affiliates

9 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Affiliates

Investments in Unconsolidated Affiliates

Tres Holdings Divestiture

On February 20, 2023, we and Brookfield Infrastructure Group (Brookfield) entered into an agreement with a subsidiary of Enbridge, Inc. to sell each of our respective interests in Tres Palacios Holdings LLC (Tres Holdings) for approximately $335 million, plus working capital adjustments. The sale was completed on April 3, 2023 and we received net cash proceeds of approximately $178 million. We recorded a gain on the sale of approximately $132 million, which is reflected as an increase in our earnings from unconsolidated affiliates in our consolidated statements of operations during the nine months ended September 30, 2023.

Net Investments and Earnings (Loss) of Unconsolidated Affiliates

Our net investments in and earnings (loss) from our unconsolidated affiliates are as follows (in millions):

	Investment				Earnings (Loss) from Unconsolidated Affiliates				Earnings (Loss) from Unconsolidated Affiliates
					Three Months Ended				Nine Months Ended
	September 30,		December 31,		September 30,				September 30,
	2023		2022		2023		2022		2023		2022
Crestwood Permian Basin LLC(1)	$	74.0	$	76.5	$	1.1	$	0.7	$	2.0	$	0.7
Tres Palacios Holdings LLC(2)	—		39.8		0.1		1.3		133.6		3.2
Powder River Basin Industrial Complex, LLC(3)	3.1		3.2		(0.1)		(0.1)		(0.4)		(0.4)
Crestwood Permian Basin Holdings LLC(4)	—		—		—		1.3		—		8.7
Total	$	77.1	$	119.5	$	1.1	$	3.2	$	135.2	$	12.2

(1)As discussed in Note 3, in July 2022, we acquired the remaining 50% equity interest in Crestwood Permian, whose operations included its 50% equity interest in Crestwood Permian Basin LLC (Crestwood Permian Basin). As of September 30, 2023, our equity in the underlying net assets of Crestwood Permian Basin was less than the carrying value of our investment balance by approximately $2.2 million. During the three and nine months ended September 30, 2023, we recorded amortization of less than $0.1 million and approximately $0.1 million, respectively, related to this basis difference, which is reflected as a decrease in our earnings from unconsolidated affiliates in our consolidated statements of operations, and during both the three and nine months ended September 30, 2022, we recorded amortization of less than $0.1 million related to this basis difference. Our Crestwood Permian Basin investment is included in our gathering and processing south segment.

(2)In April 2023, we sold our equity interest in Tres Holdings and we recorded a gain on the sale of approximately $132 million, which eliminated our $19.9 million historical basis difference between our investment balance and our equity in the underlying net assets of Tres Holdings. During the nine months ended September 30, 2023, we recorded amortization of approximately $0.3 million related to this excess basis, which is reflected as an increase in our earnings from unconsolidated affiliates in our consolidated statements of operations, and during the three and nine months ended September 30, 2022, we recorded amortization of approximately $0.3 million and $0.9 million related to this excess basis. Our Tres Holdings investment was included in our storage and logistics segment. See Tres Holdings Divestiture above for a further discussion of the sale of our Tres Holdings equity investment.

(3)As of September 30, 2023, our equity in the underlying net assets of Powder River Basin Industrial Complex, LLC (PRBIC) approximates the carrying value of our investment balance. Our PRBIC investment is included in our storage and logistics segment.

(4)In July 2022, we acquired the remaining 50% equity interest in Crestwood Permian and as a result, we control and own 100% of the equity interests in Crestwood Permian. Our Crestwood Permian equity investment was previously included in our gathering and processing south segment. See Note 3 for a further discussion of this acquisition.

Distributions and Contributions

The following table summarizes our distributions from and contributions to our unconsolidated affiliates (in millions):

	Distributions				Contributions
	Nine Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Crestwood Permian Basin	$	6.3	$	2.2	$	1.8	$	—
Tres Holdings	—		4.9		5.1		6.7
PRBIC	—		—		0.3		—
Crestwood Permian	—		13.6		—		83.5
Total	$	6.3	$	20.7	$	7.2	$	90.2