Equity Method Investments

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

EQUITY METHOD INVESTMENTS

EQUITY METHOD INVESTMENTS

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

	June 30, 2019		December 31, 2018
White Cliffs Pipeline, L.L.C.	$	265,200	$	255,043
NGL Energy Partners LP	18,986		18,966
Total equity method investments	$	284,186	$	274,009

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
White Cliffs Pipeline, L.L.C.	$	12,688	$	14,338	$	26,625	$	26,943
NGL Energy Partners LP	7		13		21		22
Total earnings from equity method investments	$	12,695	$	14,351	$	26,646	$	26,965

White Cliffs Pipeline, L.L.C.

We own a 51% interest in White Cliffs Pipeline, L.L.C. (“White Cliffs”), which we account for under the equity method. Certain unaudited summarized income statement information of White Cliffs for the three months and six months ended June 30, 2019 and 2018, is shown below (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Revenue	$	41,962		$	44,209		$	87,586		$	84,600
Costs of products sold, exclusive of depreciation and amortization	$	(228	)	$	(415	)	$	(7	)	$	(31	)
Operating, general and administrative expenses	$	8,047		$	6,594		$	16,859		$	11,997
Depreciation and amortization expense	$	9,265		$	9,606		$	18,528		$	19,197
Net income	$	24,878		$	28,423		$	52,206		$	53,437

We received cash distributions from White Cliffs of $16.0 million and $19.4 million for the three months ended June 30, 2019 and 2018, respectively. We received cash distributions from White Cliffs of $36.5 million and $38.6 million for the six months ended June 30, 2019 and 2018, respectively.

The members of White Cliffs are required to contribute capital to White Cliffs to fund various projects. In 2018, we announced that we will convert one of the White Cliffs 12-inch carrier pipelines from crude service to natural gas liquids service. For the three months and six months ended June 30, 2019, we contributed $10.6 million and $20.0 million, respectively, to fund the conversion project. For the three months and six months ended June 30, 2018, we contributed $1.8 million and $1.8 million, respectively, to fund the conversion project. Remaining contributions related to the conversion project will be paid in 2019 and are expected to total $8.7 million. The project is expected to be completed during the fourth quarter of 2019.

NGL Energy Partners LP

We own an 11.78% interest in the general partner of NGL Energy Partners LP (NYSE: NGL) (“NGL Energy”) which is being accounted for under the equity method in accordance with ASC 323-30-S99-1, as our ownership is in excess of the 3 to 5 percent interest which is generally considered to be more than minor. The general partner of NGL Energy is not a publicly traded company.