Investments in Non-Controlled Entities

Our investments in non-controlled entities at September 30, 2018 were comprised of:



Entity		Ownership Interest
BridgeTex Pipeline Company, LLC (“BridgeTex”)		30%
Double Eagle Pipeline LLC (“Double Eagle”)		50%
HoustonLink Pipeline Company, LLC (“HoustonLink”)		50%
MVP Terminalling, LLC (“MVP”)		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%

In September 2018, we sold a 20% interest in BridgeTex to an affiliate of OMERS Infrastructure Management, Inc. (“OMERS”), which reduced our ongoing investment in BridgeTex to a 30% interest. We received $578.5 million in cash from the sale, and we recorded a gain of $353.8 million on our consolidated statements of income. See Note 9 – Commitments and Contingencies for details regarding our indemnity to OMERS that was recorded in relation to the sale.

We serve as operator of BridgeTex, HoustonLink, MVP, Powder Springs, Saddlehorn, Texas Frontera and the pipeline activities of Seabrook. We receive fees for management services as well as reimbursement or payment to us for certain direct operational payroll and other overhead costs. The management fees we have received are reported as affiliate management fee revenue on our consolidated statements of income. Cost reimbursements we receive from these entities in connection with our operating services are included as reductions to costs and expenses on our consolidated statements of income and totaled $0.7 million and $0.9 million during the three months ended September 30, 2017 and 2018, respectively, and $3.1 million and $2.6 million during the nine months ended September 30, 2017 and 2018, respectively.

We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in millions):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2018		2017		2018
Transportation and terminals revenue:
BridgeTex, pipeline capacity	$	9.1	$	9.9	$	27.0	$	29.5
Double Eagle, throughput revenue	$	1.3	$	1.0	$	3.1	$	3.9
Saddlehorn, storage revenue	$	0.5	$	0.5	$	1.6	$	1.6
Operating costs:
Seabrook, storage and ancillary services	$	—	$	4.0	$	—	$	4.0
Product sales revenue:
Powder Springs, butane sales	$	—	$	—	$	—	$	4.9
Cost of product sales:
Powder Springs, butane purchases	$	—	$	—	$	—	$	0.4

Our consolidated balance sheets reflected the following balances related to our investments in non-controlled entities (in millions):



	December 31, 2017						September 30, 2018
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable		Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable
BridgeTex	$	—	$	—	$	—	$	0.2	$	0.1	$	—
Double Eagle	$	0.5	$	—	$	—	$	0.3	$	—	$	—
HoustonLink	$	—	$	—	$	0.1	$	—	$	—	$	—
MVP	$	—	$	0.4	$	—	$	—	$	1.2	$	—
Powder Springs	$	—	$	0.9	$	—	$	—	$	2.1	$	—
Saddlehorn	$	—	$	0.1	$	—	$	—	$	0.2	$	—
Seabrook	$	—	$	0.2	$	—	$	—	$	—	$	2.1

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

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




Investments at December 31, 2017	$	1,082,511
Additional investment	147,048
Sale of ownership interest in BridgeTex	(205,776		)
Other adjustments	502
Earnings of non-controlled entities:
Proportionate share of earnings	132,647
Amortization of excess investment and capitalized interest	(1,804		)
Earnings of non-controlled entities	130,843
Less:
Distributions from operations of non-controlled entities	147,950
Distributions from returns of investments in non-controlled entities	1,786
Investments at September 30, 2018	$	1,005,392