Investment in Unconsolidated Affiliates

3 Months Ended

Mar. 31, 2015

Investment in Unconsolidated Affiliate [Abstract]

Note 8 – Investment in Unconsolidated Affiliates

At December 31, 2014, the Partnership’s unconsolidated investment consisted of a 38.8% ownership interest in Gulf Coast Fractionators LP (“GCF”). As of March 31, 2015, the Partnership continues to have a 38.8% ownership interest in GCF.

On February 27, 2015, as part of the Atlas mergers, the Partnership acquired equity interests in three non-operated joint ventures, (1) a 75% interest in T2 LaSalle, (2) a 50% interest in T2 Eagle Ford and (3) a 50% interest in T2 EF Co-Gen (together the “T2 Joint Ventures”). The T2 Joint Ventures were formed to provide services for the benefit of the joint interest owners. The T2 Joint Ventures have capacity lease agreements with the joint interest owners, which cover the costs of operations of the T2 Joint Ventures. The terms of these joint venture agreements do not afford the Partnership the degree of control required for consolidating them in our financial statements, but, they do afford the Partnership significant influence required to employ the equity method of accounting.

The following table shows the activity related to the Partnership’s investments in unconsolidated affiliates:

	Three Months Ended March 31, 2015
Beginning of period	$	50.2
Fair value of T2 Joint Ventures		273.7
Equity earnings (1)		1.7
Cash distributions (2)		(2.7	)
End of period	$	322.9

(1)	Includes equity earnings of acquired investments since the date of acquisition of February 27, 2015.

(2)

Includes $0.6 million distributions received in excess of the Partnership’s share of cumulative earnings for the three months ended March 31, 2015. Such excess distributions are considered a return of capital and disclosed in cash flows from investing activities in the Consolidated Statements of Cash Flows.

The Partnership’s allocated cost basis of the T2 Joint Ventures investment is based on preliminary fair values at the date of acquisition with a basis difference of approximately $99.1 million. This basis difference is being amortized over the preliminary estimated useful lives of the underlying assets of 20 years on a straight-line basis and is included as a component of the Partnership’s equity earnings. See Note 4 for further information regarding the preliminary fair value determinations related to the Atlas mergers.

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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