Investments in Non-Controlled Entities

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in Non-Controlled Entities

Investments in Non-Controlled Entities

Our investments in non-controlled entities at June 30, 2019 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%

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 receive 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 $1.2 million and $1.1 million during the three months ended June 30, 2018 and 2019, respectively, and $1.7 million and $2.6 million during the six months ended June 30, 2018 and 2019, respectively.

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2019		2018		2019
Transportation and terminals revenue:
BridgeTex, pipeline capacity and storage	$	9,697	$	10,181	$	19,561	$	20,326
Double Eagle, throughput revenue	$	1,343	$	1,572	$	2,887	$	3,231
Saddlehorn, storage revenue	$	538	$	551	$	1,076	$	1,103
Operating costs:
Seabrook, storage lease and ancillary services	$	—	$	6,241	$	—	$	13,150
Product sales revenue:
Powder Springs, butane sales	$	2,180	$	—	$	4,899	$	—
Cost of product sales:
Powder Springs, butane purchases	$	410	$	—	$	410	$	—

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

	December 31, 2018
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable		Long-Term Receivables
BridgeTex	$	318	$	1,549	$	—	$	—
Double Eagle	$	546	$	—	$	—	$	—
MVP	$	—	$	397	$	—	$	—
Powder Springs	$	—	$	—	$	—	$	2,221
Saddlehorn	$	—	$	183	$	—	$	—
Seabrook	$	—	$	—	$	1,140	$	—

	June 30, 2019
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable		Long-Term Receivables
BridgeTex	$	—	$	31	$	530	$	—
Double Eagle	$	569	$	—	$	—	$	—
MVP	$	—	$	387	$	—	$	—
Powder Springs	$	144	$	5	$	—	$	3,824
Saddlehorn	$	184	$	123	$	—	$	—
Seabrook	$	—	$	252	$	1,195	$	—

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 12/31/2018	$	1,076,306
Additional investment	112,251
Indemnification settlement	(5,000		)
Earnings of non-controlled entities:
Proportionate share of earnings	72,968
Amortization of excess investment and capitalized interest	(928		)
Earnings of non-controlled entities	72,040
Less:
Distributions from operations of non-controlled entities	83,069
Distributions from returns of investments in non-controlled entities	7,500
Investments at 6/30/2019	$	1,165,028