EQUITY METHOD INVESTMENTS

Our equity method investments consisted of the following (in thousands):



	March 31, 2016		December 31, 2015
White Cliffs Pipeline, L.L.C.	$	293,811	$	297,109
NGL Energy Partners LP	70,342		112,787
Glass Mountain Pipeline, LLC	139,761		141,182
Total equity method investments	$	503,914	$	551,078

Our earnings from equity method investments consisted of the following (in thousands):



	Three Months Ended March 31,
	2016		2015
White Cliffs Pipeline, L.L.C.	$	19,780	$	19,090
NGL Energy Partners LP*	2,232		(305		)
Glass Mountain Pipeline, LLC	1,059		1,774
Total earnings from equity method investments	$	23,071	$	20,559

* Excluding loss on issuance of common units of $41.0 thousand for the three months ended March 31, 2016. Additionally, gains and losses on the disposal or impairment of equity investments are not reported within "earnings from equity method investments" in the condensed consolidated statements of operations and comprehensive income (loss).

Cash distributions received from equity method investments consisted of the following (in thousands):



	Three Months Ended March 31,
	2016		2015
White Cliffs Pipeline, L.L.C.	$	24,098	$	24,154
NGL Energy Partners LP	4,873		5,015
Glass Mountain Pipeline, LLC	2,815		1,911
Total cash distributions received from equity method investments	$	31,786	$	31,080

White Cliffs Pipeline, L.L.C.

Certain unaudited summarized income statement information of White Cliffs Pipeline, L.L.C. ("White Cliffs") for the three months ended March 31, 2016 and 2015 is shown below (in thousands):



	Three Months Ended March 31,
	2016		2015
Revenue	$	58,056	$	54,614
Operating, general and administrative expenses	$	9,852	$	8,353
Depreciation and amortization expense	$	8,963	$	8,538
Net income	$	39,247	$	37,723

The equity in earnings of White Cliffs for the three months ended March 31, 2016 and 2015 is less than 51% of the net income of White Cliffs for the same periods. This is due to certain general and administrative expenses we incur in managing the operations of White Cliffs that the other owners are not obligated to share. Such expenses are recorded by White Cliffs and are allocated to our ownership interest. White Cliffs recorded $0.5 million and $0.3 million of such general and administrative expense for the three months ended March 31, 2016 and 2015, respectively.

The members of White Cliffs are required to contribute capital to White Cliffs to fund various projects. For the three months ended March 31, 2016, we contributed $0.5 million for an expansion project adding approximately 65,000 barrels per day of capacity. Remaining contributions related to the expansion project will be paid in 2016 and are expected to total $1.7 million. The project is expected to be completed during the first half of 2016.

NGL Energy Partners LP

At March 31, 2016, we owned 4,652,568 common units representing limited partner interests in NGL Energy Partners LP (NYSE: NGL) ("NGL Energy"), which represents approximately 4.4% of the total 105,383,639 limited partner units of NGL Energy outstanding at December 31, 2015, and an 11.78% interest in the general partner of NGL Energy.

At March 31, 2016, the fair market value of our 4,652,568 common unit investment in NGL Energy was $35.0 million, based on a March 31, 2016 closing price of $7.52 per common unit. This does not reflect our 11.78% interest in the general partner of NGL Energy. The fair value of our limited partner investment in NGL Energy is categorized as a Level 1 measurement, as it is based on quoted market prices.

See Note 4 for discussion of the other-than-temporary impairment of our common unit investment in NGL Energy.

Our policy is to record our equity in earnings of NGL Energy on a one-quarter lag, as we do not expect information on the earnings of NGL Energy to always be available in time to consistently record the earnings in the quarter in which they are generated. Accordingly, the equity in earnings from NGL Energy, which is reflected in our condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2016 and 2015, relates to the earnings of NGL Energy for the three months ended December 31, 2015 and 2014, respectively.

During the three months ended December 31, 2015, NGL issued common units which diluted our limited partnership interest. As we record activity on a one-quarter lag, we recognized a non-cash loss of $41.0 thousand associated with these issuances for the three months ended March 31, 2016.

During the three months ended March 31, 2015, we sold 999,533 of our NGL Energy common units for $29.0 million, net of related costs of $0.4 million. We recorded a net gain related to these sales of $7.9 million in our condensed consolidated statement of operations and comprehensive income (loss) for the three months ended March 31, 2015.

On April 27, 2016, we sold all of our NGL Energy limited partner units for $13.00 per unit. We expect to record a gain of approximately $9.1 million in the second quarter related to this transaction.

Certain unaudited summarized income statement information of NGL Energy for the three months ended December 31, 2015 and 2014 is shown below (in thousands):



	Three Months Ended December 31,
	2015		2014
Revenue	$	2,685,006	$	4,552,146
Cost of sales	$	2,433,500	$	4,311,668
Operating, general and administrative expenses	$	131,146	$	172,064
Depreciation and amortization expense	$	59,180	$	50,335
Net income (loss)	$	29,621	$	(5,269	)

Glass Mountain Pipeline, LLC

We own a 50% interest in Glass Mountain Pipeline, LLC ("Glass Mountain"), which we account for under the equity method. The excess of the recorded amount of our investment over the book value of our share of the underlying net assets represents equity method goodwill and capitalized interest at March 31, 2016. Capitalized interest is amortized as a reduction of earnings from equity method investments.

Certain unaudited summarized income statement information of Glass Mountain for the three months ended March 31, 2016 and 2015 is shown below (in thousands):



	Three Months Ended March 31,
	2016		2015
Revenue	$	8,572	$	11,121
Cost of sales	$	565	$	1,982
Operating, general and administrative expenses	$	1,845	$	1,438
Depreciation and amortization expense	$	3,936	$	4,044
Net income	$	2,225	$	3,655

The equity in earnings of Glass Mountain for the three months ended March 31, 2016 reported in our condensed consolidated statement of operations and comprehensive income (loss) is less than 50% of the net income of Glass Mountain for the same period due to amortization of capitalized interest for the period.

For the three months ended March 31, 2016, we contributed $0.3 million to Glass Mountain related to capital projects.