Investments in Non-Controlled Entities (Notes)

9 Months Ended

Sep. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Investments in Non-Controlled Entities

Investments in Non-Controlled Entities

Our investments in non-controlled entities at September 30, 2015 were comprised of:

Entity	Ownership Interest
BridgeTex Pipeline Company, LLC ("BridgeTex")	50%
Double Eagle Pipeline LLC ("Double Eagle")	50%
Osage Pipe Line Company, LLC ("Osage")	50%
Powder Springs Logistics, LLC ("Powder Springs")	50%
Saddlehorn Pipeline Company, LLC ("Saddlehorn")	40%
Seabrook Logistics, LLC ("Seabrook")	50%
Texas Frontera, LLC ("Texas Frontera")	50%

The management fees we have recognized or will recognize from BridgeTex, Osage, Powder Springs, Saddlehorn, Seabrook and Texas Frontera are or will be reported as affiliate management fee revenue on our consolidated statements of income. 

At December 31, 2014 and September 30, 2015, we recognized liabilities of $2.2 million and $0.5 million, respectively, to BridgeTex primarily for pre-paid construction management fees. For the three and nine months ended September 30, 2015, we recognized pipeline capacity lease revenue from BridgeTex of $8.9 million and $25.8 million, respectively, which we included in transportation and terminals revenue on our consolidated statements of income. We recognized a $2.6 million receivable from BridgeTex at December 31, 2014. There was no receivable at September 30, 2015.

In third quarter 2015, we purchased surplus pipe from BridgeTex for the amount of $0.6 million. We sold a portion of the pipe purchased from BridgeTex to Saddlehorn for $0.2 million.

We recognized throughput revenue from Double Eagle for the three months ended September 30, 2014 and 2015 of $0.7 million and $0.8 million, respectively, and for the nine months ended September 30, 2014 and 2015 of $2.0 million and $2.6 million, respectively, which we included in transportation and terminals revenue.  At December 31, 2014 and September 30, 2015, respectively, we recognized a $0.3 million trade accounts receivable from Double Eagle.

The financial results from Texas Frontera are included in our marine storage segment, the financial results from BridgeTex, Double Eagle, Osage, Saddlehorn and Seabrook are included in our crude oil segment and the financial results from Powder Springs are included in our refined products segment as earnings/losses of non-controlled entities.

A summary of our investments in non-controlled entities follows (in thousands):

	BridgeTex			All Others			Consolidated
Investments at December 31, 2014	$	489,348		$	124,519		$	613,867
Additional investment	16,608			130,017			146,625
Earnings of non-controlled entities:
Proportionate share of earnings	45,903			5,842			51,745
Amortization of excess investment and capitalized interest	(1,529		)	(563		)	(2,092		)
Earnings of non-controlled entities	44,374			5,279			49,653
Less:
Distributions of earnings from investments in non-controlled entities	44,374			2,862			47,236
Distributions in excess of earnings of non-controlled entities	9,341			—			9,341
Investments at September 30, 2015	$	496,615		$	256,953		$	753,568

Summarized financial information of our non-controlled entities for the three and nine months ended September 30, 2014 and 2015 follows (in thousands):

	Three Months Ended September 30, 2014						Three Months Ended September 30, 2015
	BridgeTex		All Others		Consolidated		BridgeTex		All Others		Consolidated
Revenue	$	428	$	8,882	$	9,310	$	47,555	$	12,530	$	60,085
Net income	$	297	$	3,370	$	3,667	$	28,150	$	4,151	$	32,301

	Nine Months Ended September 30, 2014						Nine Months Ended September 30, 2015
	BridgeTex		All Others		Consolidated		BridgeTex		All Others		Consolidated
Revenue	$	428	$	27,346	$	27,774	$	146,320	$	33,677	$	179,997
Net income	$	17	$	9,241	$	9,258	$	91,806	$	11,525	$	103,331