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Investment in Unconsolidated Affiliates
 12 Months Ended
Dec. 31, 2016
Investment in Unconsolidated Affiliates  
Investment in Unconsolidated Affiliates

(11) Investments in Unconsolidated Affiliates

 

The Partnership’s unconsolidated investments consisted of:

 

·

a contractual right to the benefits and burdens associated with Devon’s 38.75% ownership interest in GCF at December 31, 2016, 2015 and 2014;

·

an approximate 31% ownership interest in HEP at December 31, 2016, 2015 and 2014; and

·

a  30.0% ownership in the Cedar Cove JV at December 31, 2016.

 

In December 2016, the Partnership entered into an agreement to sell its ownership interest in HEP for approximately $193.1 million, subject to customary closing conditions, including regulatory approvals. We expect the transaction to close in the first quarter of 2017. For the year ended December 31, 2016, we recorded an impairment of $20.1 million to reduce the carrying value of our investment to the expected sales price.

 

The following table shows the activity related to the Partnership’s investment in unconsolidated affiliates for the periods indicated (in millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Gulf Coast

    

Howard Energy

    

Cedar Cove

    

 

 

 

 

Fractionators

 

Partners

 

JV

 

Total

December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

Contributions (1)

 

$

 —

 

$
45.0

 

$
28.8

 

$
73.8

Distributions (2)

 

$
7.5

 

$
50.2

 

$

 —

 

$
57.7

Equity in income (3)

 

$
3.4

 

$
(23.3)

 

$

 —

 

$
(19.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

Contributions

 

$

 —

 

$
25.8

 

$

 —

 

$
25.8

Distributions

 

$
14.5

 

$
28.2

 

$

 —

 

$
42.7

Equity in income

 

$
13.0

 

$
7.4

 

$

 —

 

$
20.4

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014 (4)

 

 

 

 

 

 

 

 

 

 

 

 

Contributions

 

$

 —

 

$
5.7

 

$

 —

 

$
5.7

Distributions

 

$
11.0

 

$
12.7

 

$

 —

 

$
23.7

Equity in income

 

$
17.1

 

$
1.8

 

$

 —

 

$
18.9

(1)Contributions for the year ended December 31, 2016 include $32.7 million of contributions to HEP for preferred units through July 2016. These preferred units were redeemed during the third quarter of 2016.

(2)Distributions for the year ended December 31, 2016 include a redemption of $32.7 million of preferred units.

(3)Includes a $20.1 million impairment in our HEP investment to reduce the carrying value of our investment to the sales price that we expect to receive in the first quarter of 2017.

(4)Includes income, distributions and contributions for the period from March 7, 2014 through December 31, 2014.

 

The following table shows the balances related to the Partnership’s investment in unconsolidated affiliates for the periods indicated (in millions):

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

 

 

2016

    

2015

Gulf Coast Fractionators

 

$
48.5

 

$
52.6

Howard Energy Partners (1)

 

 
193.1

 

 
221.7

Cedar Cove JV

 

 
28.8

 

 

 —

Total investments in unconsolidated affiliates

 

$
270.4

 

$
274.3

(1)

Due to the expected completion of the sale of our investment in HEP in the first quarter of 2017, the HEP investment balance is classified as “Investment in unconsolidated affiliates – current” on the consolidated balance sheet as of December 31, 2016.