Equity Method Investments

12 Months Ended

Dec. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Note 15. Equity Method Investments

Equity Method Investments Investments accounted for under the equity method consist primarily of the following:

• 50% interest in Advantage Pipeline, which owns and operates a 70-mile crude oil pipeline in Texas (See Note 5. Acquisitions and Divestitures);

• 45% interest in Atlantic Methanol Production Company, LLC (AMPCO), which owns and operates a methanol plant and related facilities in Equatorial Guinea; and

• 28% interest in Alba Plant , which owns and operates a LPG processing plant in Equatorial Guinea.

We consider these equity method investments essential components of our business as well as necessary and integral elements of our value chain in support of ongoing operations in our Midstream and West Africa segments. For the Advantage Pipeline system, Noble Midstream Partners serves as operator and exerts significant influence over the day-to-day operations. The operating agreements for Advantage Pipeline empower the board to direct activities that most significantly affect long-term economic performance. With regard to AMPCO, we hold a voting position on AMPCO's leadership team through AMPCO's management committee, and our asset teams influence decisions regarding capital investments, budgets, turnarounds, maintenance and other project matters. For the Alba Plant, our Alba asset teams are fully engaged in operational and financial decisions and exert significant influence in the monetization of the Alba field and Alba Plant.

Equity method investments are as follows:

	December 31,
(millions)	2018		2017
Advantage Pipeline	$	73	$	70
AMPCO	131		129
Alba Plant	58		80
Other	24		26
Total Equity Method Investments	$	286	$	305

Additional Information At December 31, 2018, consolidated retained earnings included $68 million related to the undistributed earnings of equity method investees.

The carrying value of our AMPCO investment was $13 million higher than the underlying net assets of the investee at December 31, 2018. The difference is related to capitalized interest which is being amortized into earnings over the remaining useful life of the plant.

Summarized, 100% combined financial information for equity method investees is as follows:

	December 31,
(millions)	2018		2017
Balance Sheet Information
Current Assets	$	387	$	390
Noncurrent Assets	575		588
Current Liabilities	198		171
Noncurrent Liabilities	81		90

	Year Ended December 31,
(millions)	2018		2017		2016
Statements of Operations Information
Operating Revenues	$	855	$	790	$	667
Operating Expenses	284		303		355
Operating Income	571		487		312
Other Income, net	3		15		7
Income Before Income Taxes	574		502		319
Income Tax Provision	152		136		60
Net Income	$	422	$	366	$	259