
K.	UNCONSOLIDATED AFFILIATES

Equity Earnings from Investments - The following table sets forth ONEOK Partners’ equity earnings (losses) from investments for the periods indicated:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014			2013
	(Thousands of dollars)
Share of investee earnings (loss)
Northern Border Pipeline	$	14,371		$	16,464	$	53,657		$	48,133
Overland Pass Pipeline Company	3,856			5,783		12,708			14,210
Fort Union Gas Gathering	4,169			2,946		12,578			9,895
Bighorn Gas Gathering (a)	(23,472		)	559		(24,745		)	1,897
Other	2,150			1,716		5,970			5,609
Total share of investee earnings	1,074			27,468		60,168			79,744
Impairment of investment in Bighorn Gas Gathering	(53,421		)	—		(53,421		)	—
Equity earnings (loss) from investments	$	(52,347	)	$	27,468	$	6,747		$	79,744

(a) Includes proportionate share of investee impairment of long-lived assets charge of $23.0 million.

Unconsolidated Affiliates Financial Information - The following table sets forth summarized combined financial information of ONEOK Partners’ unconsolidated affiliates for the periods indicated:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014		2013
	(Thousands of dollars)
Income Statement
Operating revenues	$	126,218		$	131,959	$	403,006	$	391,912
Operating expenses (a)	$	123,620		$	63,971	$	247,169	$	189,366
Net income (loss) (a)	$	(5,119	)	$	61,630	$	134,432	$	185,580

Distributions paid to ONEOK Partners	$	31,574		$	34,409	$	109,223	$	103,913

(a) - Includes long-lived asset impairment charge on Bighorn Gas Gathering.

ONEOK Partners incurred expenses in transactions with unconsolidated affiliates of $15.0 million and $15.9 million for the three months ended September 30, 2014 and 2013, respectively, and $43.5 million and $36.3 million for the nine months ended September 30, 2014 and 2013, respectively, primarily related to Overland Pass Pipeline Company and Northern Border Pipeline Company, which are included in cost of sales and fuel in our Consolidated Statements of Income. Accounts payable to ONEOK Partners’ equity method investees at September 30, 2014, and December 31, 2013, were not material.

Low natural gas prices and the relatively higher crude oil and NGL prices, compared with natural gas on a heating-value basis, have caused producers primarily to focus development efforts on crude oil and NGL-rich supply basins rather than areas with dry natural gas production, such as the coal-bed methane areas in the Powder River Basin. The reduced coal-bed methane development activities and natural production declines in the dry natural gas formations of the Powder River Basin have resulted in lower natural gas volumes available to be gathered. While the reserve potential in the dry natural gas formations of the Powder River Basin still exists, future drilling and development will be affected by commodity prices and producers’ alternative prospects.

During 2014 through the third quarter, the volumes gathered on the Bighorn Gas Gathering system declined at a rate greater than in prior periods and greater than expected. Due to these additional declines in volumes, Bighorn Gas Gathering recorded an impairment of its underlying assets in September 2014, when the operator determined that the volume decline was other than temporary. As a result of these developments, ONEOK Partners reviewed its equity method investment in Bighorn Gas Gathering for impairment as of September 30, 2014. ONEOK Partners recorded noncash impairment charges of $76.4 million related to Bighorn Gas Gathering. The noncash impairment charges are included in equity earnings (loss) from investments in our accompanying Consolidated Statements of Income. The remaining net book value of ONEOK Partners’ equity method investment in Bighorn Gas Gathering is $8.8 million, and no equity method goodwill remains.