Equity Method Investments

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Equity Method Investments

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, 2022			December 31, 2021
	Ownership	Investment Amount		Ownership	Investment Amount
Mattox	79.0%	$	153	79.0%	$	156
Amberjack – Series A / Series B	75.0% / 50.0%	349		75.0% / 50.0%	359
Mars	71.5%	150		71.5%	150
Bengal	50.0%	85		50.0%	85
Permian Basin	50.0%	79		50.0%	80
LOCAP	41.48%	16		41.48%	15
Explorer	38.59%	65		38.59%	68
Poseidon	36.0%	—		36.0%	—
Colonial	16.125%	53		16.125%	32
Proteus	10.0%	13		10.0%	13
Endymion	10.0%	16		10.0%	16
		$	979		$	974

Impacts to Equity Method Investments

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

	Three Months Ended March 31,
	2022		2021
Mattox	$	15	$	15
Amberjack	28		29
Mars	29		29
Bengal	2		3
Explorer	10		7
Colonial	21		15
Other (1)	3		4
	$	108	$	102

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

For the three months ended March 31, 2022 and March 31, 2021, distributions received from equity method investments were $111 million and $123 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. The amortization is included in Income from equity method investments. As of March 31, 2022 and December 31, 2021, the unamortized basis differences included in our equity investments were $73 million and $75 million, respectively. For both the three months ended March 31, 2022 and March 31, 2021, the net amortization expense was $2 million.

Cumulatively, distributions received from Poseidon have been in excess of our investment balance and, therefore, the equity method of accounting has been suspended for this investment and the investment amount reduced to zero. As we have no commitments to provide further financial support to Poseidon, we have recorded excess distributions in Other income of $8 million and $14 million for the three months ended March 31, 2022 and March 31, 2021, respectively. 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.

Significant Developments

The board of directors of Colonial elected not to declare a dividend for the three months ended March 31, 2022.

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, 2022 and March 31, 2021, we made capital contributions of zero and approximately $2 million, respectively.

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, 2022
	Total revenues		Total operating expenses		Operating income		Net income
Statements of Income
Mattox	$	22	$	3	$	19	$	19
Amberjack	71		17		54		54
Mars	61		19		42		42
Bengal	10		4		6		3
Explorer	81		44		37		26
Colonial	383		176		207		132
Poseidon	31		9		22		21
Other (1)	50		30		20		18

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

	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.