The Partnership has equity interests in Northern Border, Great Lakes and Iroquois. The pipeline systems owned by these entities are regulated by the Federal Energy Regulatory Commission (FERC). The Northern Border and Great Lakes pipeline systems are operated by subsidiaries of TC Energy. The Iroquois pipeline system is operated by Iroquois Pipeline Operating Company, a wholly owned subsidiary of Iroquois. The Partnership uses the equity method of accounting for its interests in its equity investees.


	Ownership	Equity Earnings							Equity Investments
	Interest at	Three months ended			Six months ended
(unaudited)	June 30,	June 30,			June 30,			June 30,	December 31,
(millions of dollars)	2020	2020	2019	2020	2019	2020	2019
Northern Border	50.00%	13	14	35	35	412	422
Great Lakes	46.45%	9	9	29	29	489	491
Iroquois	49.34%	7	7	20	20	181	185
		29	30	84	84	1,082	1,098

Distributions received from equity investments in the three and six months ended June 30, 2020 totaled $49 million and $120 million, respectively (June 30, 2019 - $108 million and $167 million, respectively ).

During the six months ended June 30, 2020, $5 million of the total $120 million distributions received from equity investments (June 30, 2019 - $55 million), was considered return of capital and included in "Investing Activities" in the Partnership’s consolidated statement of cash flows. The return of capital was related to our investment in Iroquois (see further discussion below).

During the three and six months ended June 30, 2020, the Partnership received distributions from Northern Border amounting to $18 million and $45 million, respectively (June 30, 2019 - $72 million and $100 million, respectively).


(unaudited)
(millions of dollars)	June 30, 2020	December 31, 2019
ASSETS
Cash and cash equivalents	17	21
Other current assets	38	37
Property, plant and equipment, net	978	989
Other assets	12	12
	1,045	1,059
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	42	42
Deferred credits and other	41	39
Long-term debt, net ^(a)	369	364
Partners’ equity
Partners’ capital	594	615
Accumulated other comprehensive loss	(1)	(1)
	1,045	1,059


	Three months ended			Six months ended
(unaudited)	June 30,			June 30,
(millions of dollars)	2020	2019	2020	2019
Transmission revenues	66	67	149	148
Operating expenses	(19)	(20)	(39)	(40)
Depreciation	(16)	(16)	(31)	(31)
Financial charges and other	(5)	(4)	(9)	(8)
Net income	26	27	70	69

^(a) No current maturities as of June 30, 2020 and December 31, 2019. At June 30, 2020, Northern Border was in compliance with all its financial covenants.

The Partnership is considered to have a variable interest in Great Lakes, which is accounted for as an equity investment as we are not its primary beneficiary. A variable interest entity is a legal entity that either does not have sufficient equity at risk to finance its activities without additional subordinated financial support, is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains or losses of the entity.

The Partnership made an equity contribution to Great Lakes of $5 million during the six months ended June 30, 2020 (June 30, 2019 - $5 million). This amount represents the Partnership’s 46.45 percent share of an $11 million cash call from Great Lakes to make a scheduled debt repayment.

During the three and six months ended June 30, 2020, the Partnership received distributions from Great Lakes amounting to $21 million and $37 million, respectively (June 30, 2019 - $23 million and $39 million, respectively).


(unaudited)
(millions of dollars)	June 30, 2020	December 31, 2019
ASSETS
Current assets	58	72
Property, plant and equipment, net	684	685
	742	757
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	34	33
Net long-term debt, including current maturities^(a)	208	219
Other long term liabilities	7	6
Partners’ equity	493	499
	742	757


	Three months ended			Six months ended
(unaudited)	June 30,			June 30,
(millions of dollars)	2020	2019	2020	2019
Transmission revenues	50	51	122	123
Operating expenses	(19)	(19)	(35)	(35)
Depreciation	(8)	(8)	(16)	(16)
Financial charges and other	(3)	(5)	(7)	(9)
Net income	20	19	64	63

^(a) Includes current maturities of $31 million as of June 30, 2020 (December 31, 2019 - $21 million). At June 30, 2020, Great Lakes was in compliance with all its financial covenants.

During the three and six months ended June 30, 2020, the Partnership received distributions from Iroquois amounting to $10 million and $38 million, respectively (June 30, 2019 - $14 million and $28 million, respectively), which includes the Partnership’s 49.34 percent share of the Iroquois unrestricted cash distribution amounting to approximately nil and $5.2 million, respectively. (June 30, 2019 - $2.6 million and $5.2 million, respectively). The unrestricted cash did not represent a distribution of Iroquois’ cash from operations during the period and therefore it was reported as a return of investment in the Partnership’s consolidated statement of cash flows.


(unaudited)
(millions of dollars)	June 30, 2020	December 31, 2019
ASSETS
Cash and cash equivalents	35	43
Other current assets	72	36
Property, plant and equipment, net	513	570
Other assets	19	16
	639	665
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	14	34
Long-term debt, net^(a)	316	317
Other non-current liabilities	22	20
Partners’ equity	287	294
	639	665


	Three months ended			Six months ended
(unaudited)	June 30,			June 30,
(millions of dollars)	2020	2019	2020	2019
Transmission revenues	41	40	93	92
Operating expenses	(14)	(13)	(29)	(28)
Depreciation	(7)	(8)	(15)	(15)
Financial charges and other	(6)	(4)	(9)	(7)
Net income	14	15	40	42

^(a) Includes current maturities of $4 million as of June 30, 2020 (December 31, 2019 - $3 million). At June 30, 2020, Iroquois was in compliance with all of its financial covenants.