Investment in Unconsolidated Affiliates:



	Year Ended December 31,
	2014		2013
	(in millions)
Enable	$	4,520	$	4,319
SESH (1)	1		199
Total	$	4,521	$	4,518


(1)	On May 30, 2014, CERC contributed a 24.95% interest in SESH to Enable, leaving CERC with a 0.1% interest in SESH as of December 31, 2014.

Equity in Earnings of Unconsolidated Affiliates, net:



	Year Ended December 31,
	2014		2013		2012
	(in millions)
Enable (1)	$	303	$	173	$	—
SESH (2)	5		15		26
Waskom (3)	—		—		5
Total	$	308	$	188	$	31


(1)	On May 1, 2013, CERC formed Enable with OGE and ArcLight.


(2)	On each of May 1, 2013 and May 30, 2014, CERC contributed a 24.95% interest in SESH to Enable, leaving CERC with a 0.1% interest in SESH as of December 31, 2014.


(3)	On July 31, 2012, Waskom became a wholly owned subsidiary of CenterPoint Energy. Beginning on August 1, 2012, Waskom’s operating results are consolidated on the Statements of Consolidated Income. On May 1, 2013, CenterPoint Energy contributed Waskom to Enable.

Summarized consolidated income information for Enable is as follows:



	Year Ended December 31,
	2014		2013 (1)
	(in millions)
Operating revenues	$	3,367	$	2,123
Cost of sales, excluding depreciation and amortization	1,914		1,241
Operating income	586		322
Net income attributable to Enable	530		289

CERC’s approximate interest	$	298	$	168
Basis difference accretion	5		5
CERC’s equity in earnings, net	$	303	$	173


(1)	The amounts included in this column represent the eight month period from formation of Enable on May 1, 2013 through December 31, 2013.

Summarized consolidated balance sheet information for Enable is as follows:



	December 31,
	2014			2013
	(in millions)
Current assets	$	438		$	549
Non-current assets	11,399			10,683
Current liabilities	671			720
Non-current liabilities	2,343			2,331
Non-controlling interest	31			33
Enable partners’ capital	8,792			8,148

CERC’s ownership interest in Enable’s partner capital	4,869			4,753
CERC’s basis difference attributable to goodwill (1)	(217		)	(229		)
CERC’s accretable basis difference (2)	(132		)	(205		)
CERC’s total basis difference	(349		)	(434		)
CERC’s investment in Enable	$	4,520		$	4,319


(1)	The difference relates to CERC’s proportionate share of Enable’s goodwill arising from its acquisition of Enogex, and therefore will be recognized by CERC upon dilution or disposition of its interest in Enable.


(2)	The difference will be recognized by CERC over 30 years beginning May 1, 2013. CERC will also adjust the accretable basis difference for dilution or disposition of its interest in Enable.

Enable concluded that the formation of Enable is considered a business combination, and CenterPoint Midstream is the acquirer for accounting purposes. Under this method, the fair value of the consideration paid by CenterPoint Midstream for Enogex was allocated to the assets acquired and liabilities assumed on the Closing Date based on their fair value. Enogex’s assets, liabilities and equity were accordingly adjusted to estimated fair value as of May 1, 2013. Determining the fair value of assets and liabilities is judgmental in nature and involves the use of significant estimates and assumptions. Enable used appraisers to assist in the determination of the estimated fair value of certain assets and liabilities contributed by Enogex.

Distributions Received from Unconsolidated Affiliates:



	Year Ended December 31,
	2014		2013		2012
	(in millions)
Enable (1)	$	298	$	106	$	—
SESH (2)	7		23		32
Waskom (3)	—		—		7
Total	$	305	$	129	$	39


(1)	On May 1, 2013, CERC formed Enable with OGE and ArcLight.


(2)	On each of May 1, 2013 and May 30, 2014, CERC contributed a 24.95% interest in SESH to Enable, leaving CERC with a 0.1% interest in SESH as of December 31, 2014.


(3)	On July 31, 2012, Waskom became a wholly owned subsidiary of CERC. Beginning on August 1, 2012, Waskom’s operating results are consolidated on the Statements of Consolidated Income. On May 1, 2013, CERC contributed Waskom to Enable.