Equity Method Investments

3 Months Ended

Mar. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

For each of the following investments, we have the ability to exercise significant influence over these investments based on certain governance provisions and our participation in the significant activities and decisions that impact the management and economic performance of the investments.

Equity method investments comprise the following as of the dates indicated:


	March 31, 2021			December 31, 2020
	Ownership	Investment Amount		Ownership	Investment Amount
Mattox	79.0%	$	161	79.0%	$	163
Amberjack – Series A / Series B	75.0% / 50.0%	376		75.0% / 50.0%	382
Mars	71.5%	153		71.5%	152
Bengal	50.0%	89		50.0%	88
Permian Basin	50.0%	82		50.0%	83
LOCAP	41.48%	14		41.48%	12
Explorer	38.59%	70		38.59%	73
Poseidon	36.0%	—		36.0%	—
Colonial	16.125%	31		16.125%	29
Proteus	10.0%	14		10.0%	14
Endymion	10.0%	17		10.0%	17
		$	1,007		$	1,013

For the three months ended March 31, 2021 and March 31, 2020, distributions received from equity method investments were $123 million and $135 million, respectively.

Unamortized differences in the basis of the initial investments and our interest in the separate net assets within the financial statements of the investees are amortized into net income over the remaining useful lives of the underlying assets. As of March 31, 2021 and December 31, 2020, the unamortized basis differences included in our equity investments are $82 million and $84 million, respectively. For both the three months ended March 31, 2021 and March 31, 2020, the net amortization expense was $2 million, which is included in Income from equity method investments.

During the first quarter of 2018, the investment amount for Poseidon was reduced to zero due to distributions received that were in excess of our investment balance, and we, therefore, suspended the equity method of accounting for this investment. As we have no commitments to provide further financial support to Poseidon, we have recorded excess distributions of $14 million and $9 million, respectively, in Other income for the three months ended March 31, 2021 and March 31, 2020. Once our cumulative share of equity earnings becomes greater than the cumulative amount of distributions received, we will resume the equity method of accounting as long as the equity method investment balance remains greater than zero.

Earnings from our equity method investments were as follows during the periods indicated:


	Three Months Ended March 31,
	2021		2020
Mattox (1)	$	15	$	—
Amberjack	29		29
Mars	29		31
Bengal	3		5
Explorer	7		14
Colonial	15		27
Other (2)	4		6
	$	102	$	112

(1) We acquired an interest in Mattox in April 2020. The acquisition of this interest has been accounted for prospectively.

(2) Included in Other is the activity associated with our investments in Permian Basin, LOCAP, Proteus and Endymion.

Under the lease standard, the adoption date for our equity method investments followed the non-public business entity adoption date of January 1, 2020 for their stand-alone financial statements, with the exception of Permian Basin, which adopted on January 1, 2019. There was no material impact on the Partnership’s consolidated financial statements as a result of the adoption of the lease standard by our equity method investees.

Summarized Financial Information

The following tables present aggregated selected unaudited income statement data for our equity method investments on a 100% basis. However, during periods in which an acquisition occurs, the selected unaudited income statement data reflects activity from the date of the acquisition.


	Three Months Ended March 31, 2021
	Total revenues		Total operating expenses		Operating income		Net income
Statements of Income
Mattox	$	22	$	3	$	19	$	19
Amberjack	72		17		55		55
Mars	63		22		41		41
Bengal	13		7		6		6
Explorer	69		42		27		21
Colonial	290		133		157		97
Poseidon	42		10		32		31
Other (1)	56		32		24		23

(1) Included in Other is the activity associated with our investments in Permian Basin, LOCAP, Proteus and Endymion.


	Three Months Ended March 31, 2020
	Total revenues		Total operating expenses		Operating income		Net income
Statements of Income
Amberjack	$	76	$	19	$	57	$	57
Mars	72		28		44		44
Bengal	17		7		10		10
Explorer	96		47		49		38
Colonial	401		163		238		169
Poseidon	33		9		24		22
Other (1)	57		27		30		25

(1) Included in Other is the activity associated with our investments in Permian Basin, LOCAP, Proteus and Endymion.

Capital Contributions

We make capital contributions for our pro-rata interest in Permian Basin to fund capital and other expenditures. For the three months ended March 31, 2021, we made a capital contribution of approximately $2 million. We did not make any capital contributions for the three months ended March 31, 2020.