Investments in Non-Controlled Entities (Tables)

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

Our investments in non-controlled entities at September 30, 2020 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”)						30%
Seabrook Logistics, LLC (“Seabrook”)						50%
Texas Frontera, LLC (“Texas Frontera”)						50%

In the first quarter of 2020, we sold a 10% interest in Saddlehorn to an affiliate of Black Diamond Gathering LLC, which is majority-owned by Noble Midstream Partners LP, reducing our ongoing investment in Saddlehorn to a 30% interest. We received $79.9 million in cash from the sale, and we recorded a gain of $12.9 million on our consolidated statements of income for the nine month period ended September 30, 2020.

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 $0.7 million during the three months ended September 30, 2019 and 2020, respectively, and $3.8 million and $2.9 million during the nine months ended September 30, 2019 and 2020, respectively.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2020		2019		2020
Transportation and terminals revenue:
BridgeTex, pipeline capacity and storage	$	10,737	$	9,323	$	31,063	$	32,748
Double Eagle, throughput revenue	$	1,582	$	995	$	4,813	$	4,016
Saddlehorn, storage revenue	$	566	$	580	$	1,669	$	1,711
Operating expenses:
Seabrook, storage lease and ancillary services	$	6,267	$	7,175	$	19,417	$	21,553




Other operating income:
Seabrook, gain on sale of air emission credits	$	—	$	—	$	—	$	1,410
MVP, easement sale	$	289	$	—	$	289	$	—

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


	December 31, 2019
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable		Long-Term Receivables
BridgeTex	$	392	$	26	$	—	$	—
Double Eagle	$	445	$	—	$	—	$	—
HoustonLink	$	60	$	—	$	—	$	—
MVP	$	—	$	418	$	—	$	—
Powder Springs	$	161	$	—	$	—	$	6,006
Saddlehorn	$	—	$	126	$	—	$	—
Seabrook	$	941	$	—	$	1,349	$	—


	September 30, 2020
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable		Long-Term Receivables
BridgeTex	$	382	$	441	$	225	$	—
Double Eagle	$	286	$	—	$	—	$	—

MVP	$	—	$	460	$	—	$	—
Powder Springs	$	—	$	—	$	—	$	8,970
Saddlehorn	$	—	$	142	$	—	$	—
Seabrook	$	497	$	—	$	4,267	$	—

We are a party to a long-term terminalling and storage contract with Seabrook for exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast (see Note 7 – Leases for more details regarding this lease).

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

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



Investments at 12/31/2019	$	1,240,551
Additional investment	73,678
Sale of ownership interest in Saddlehorn	(66,989)

Earnings of non-controlled entities:
Proportionate share of earnings	117,848

Amortization of excess investment and capitalized interest	(1,364)
Earnings of non-controlled entities	116,484
Less:
Distributions from operations of non-controlled entities	152,645

Investments at 9/30/2020	$	1,211,079