XML 54 R11.htm IDEA: XBRL DOCUMENT v3.3.0.814
Other Equity Interests
9 Months Ended
Sep. 30, 2015
Other Equity Interests  
Other Equity Interests

 

5. Other Equity Interests

 

Utica Condensate

 

In December 2013, the Partnership and The Energy & Minerals Group (“EMG”) (together the “Condensate Members”) executed an agreement (“Utica Condensate LLC Agreement”) to form Utica Condensate for the purpose of engaging in wellhead condensate gathering, stabilization, terminalling, storage and marketing in the state of Ohio. If Utica Condensate requires additional capital, each Condensate Member has the right, but not the obligation, to contribute capital in proportion to its ownership interest. As of September 30, 2015, the Partnership owned 55% of Utica Condensate.

 

Ohio Condensate

 

Utica Condensate’s business is conducted solely through its subsidiary, Ohio Condensate, which was formed in December 2013 through an agreement executed between Utica Condensate and Blackhawk (“Ohio Condensate LLC Agreement”), in which Utica Condensate and Blackhawk contributed cash in exchange for equity ownership interests of 99% and 1%, respectively. In January 2014, Summit purchased Blackhawk’s less than 1% equity interest and its option to purchase up to an additional equity ownership interest of 40% in Ohio Condensate (“Ohio Condensate Option”).  Effective as of the Summit Investment Date, Summit exercised the Ohio Condensate Option and increased its equity ownership from less than 1% to 40% through a cash investment of approximately $8.6 million.

 

As of September 30, 2015, Utica Condensate owned 60% of Ohio Condensate.  The Partnership sold approximately $17 million of assets under construction to Utica Condensate in December 2013 and received the $17 million in the first quarter of 2014.  The Partnership has recorded the proceeds in the Proceeds from disposal of property, plant and equipment in the accompanying Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2014.  Ohio Condensate is considered to be a related party.  The amount of Operational Service revenue related to Ohio Condensate for the three and nine months ended September 30, 2015 was approximately $0.9 million and $3.0 million, respectively, and is reported as Service revenue in the Condensed Consolidated Statements of Operations. The amount of Operational Service revenue related to Ohio Condensate for the three and nine months ended September 30, 2014 was approximately $0.8 million and $2.1 million, respectively, and is reported as Service revenue in the Condensed Consolidated Statements of Operations.