Equity Method Investments

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Note 5. Equity Method Investments

The carrying values of our equity method investments, including the respective segments, are as follows:



			December 31,
(millions, except percentages)	Segment	Ownership	2019		2018
Eastern Mediterranean Pipeline B.V.	Eastern Mediterranean	25%	$	189	$	—
Atlantic Methanol Production Company, LLC and Affiliates⁽¹⁾	West Africa	45%	160		146
Alba Plant LLC ⁽²⁾	West Africa	28%	56		58
EPIC Y-Grade, LP	Midstream	15%	166		—
EPIC Crude Holdings, LP	Midstream	30%	339		—
Delaware Crossing LLC	Midstream	50%	69		—
Advantage Pipeline, L.L.C.	Midstream	50%	77		73
Other	N/A	N/A	10		9
Total Equity Method Investments ⁽³⁾			$	1,066	$	286


⁽¹⁾	Atlantic Methanol Production Company, LLC (AMPCO) owns and operates a methanol plant and related facilities in Equatorial Guinea.


⁽²⁾	Alba Plant LLC owns and operates a LPG processing plant in Equatorial Guinea.


⁽³⁾	At December 31, 2019, total carrying values were $42 million higher than the underlying net assets of the investments, primarily due to capitalized interest which is amortized into earnings over the useful life of the related assets.

At December 31, 2019, consolidated retained earnings included $73 million related to the undistributed earnings of equity method investments.

Acquisitions and Divestitures

Year Ended December 31, 2019

EMED Pipeline B.V. During third quarter 2019, we acquired a 25% equity interest in Eastern Mediterranean Pipeline B.V. (EMED Pipeline B.V.). In fourth quarter 2019, EMED Pipeline B.V. acquired an approximate 39% equity interest in East Mediterranean Gas Company S.A.E. (EMG), which owns the EMG Pipeline. Upon closing of EMED Pipeline B.V.'s equity acquisition of EMG, we own an effective, indirect interest of approximately 10%, net, in EMG. The EMG Pipeline provides connection from the Israel pipeline network to Egyptian customers and supports delivery of natural gas from our producing fields offshore Israel into Egypt. During 2019, we made capital contributions of $189 million in EMED Pipeline B.V., primarily to fund the EMG equity acquisition.

EPIC Pipelines In first quarter 2019, Noble Midstream Partners exercised and closed options with EPIC Midstream Holdings, LP (EPIC) to acquire a 15% equity interest in EPIC Y-Grade, LP (EPIC Y-Grade), which constructed the EPIC Y-Grade Pipeline, and a 30% equity interest in EPIC Crude Holdings, which is constructing the EPIC Crude Oil Pipeline. The pipelines support transportation of production from the Delaware Basin to Corpus Christi, Texas. Noble Midstream Partners made capital contributions of $169 million and $351 million in EPIC Y-Grade and EPIC Crude Holdings, respectively, in 2019.

Delaware Crossing Joint Venture In February 2019, Noble Midstream Partners formed a 50/50 joint venture with Salt Creek Midstream LLC. The joint venture, Delaware Crossing LLC, is constructing a crude oil pipeline system in the Delaware Basin. Noble Midstream Partners made capital contributions of $70 million for its share of pipeline construction costs in 2019.

Year Ended December 31, 2018

Divestiture of Marcellus Shale CONE Gathering In January 2018, we sold our 50% interest in CONE Gathering LLC (CONE Gathering) to CNX Resources Corporation. CONE Gathering owns the general partner of CNX Midstream Partners LP (CNX Midstream Partners, NYSE: CNXM). We received proceeds of $309 million in cash and recognized a pre-tax gain of $196 million. After the sale, we held 21.7 million common units, representing a 34.1% limited partner interest, in CNX Midstream Partners. During 2018, we sold our 21.7 million common units, receiving net proceeds of approximately $387 million, and recognized a gain of $307 million. The investment was previously accounted for under the equity method of accounting.

Year Ended December 31, 2017

Noble Midstream Partners Advantage Joint Venture In April 2017, Noble Midstream Partners acquired a 50% interest in Advantage Pipeline, L.L.C. (Advantage Pipeline) for $67 million. Advantage Pipeline owns a crude oil pipeline system in the southern Delaware Basin from Reeves County, Texas to Crane County, Texas, for which we serve as operator.

Combined Financial Information

Summarized, 100% combined balance sheet information for equity method investments was as follows:



	December 31,
(millions)	2019		2018
Current Assets	$	681	$	387
Noncurrent Assets	5,306		575
Current Liabilities	607		198
Noncurrent Liabilities	2,243		81

Summarized, 100% combined statements of operations for equity method investments was as follows:



	Year Ended December 31,
(millions)	2019			2018		2017
Operating Revenues	$	1,018		$	855	$	790
Operating Expenses	853			284		303
Operating Income	165			571		487
Other (Loss) Income, net	(33		)	3		15
Income Before Income Taxes	132			574		502
Income Tax Provision	72			152		136
Net Income	$	60		$	422	$	366