Investments in Non-Controlled Entities (Tables)

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Our investments in non-controlled entities at December 31, 2022 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”)						25%
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 April 2021, we sold nearly half of our membership interest in MVP. As a result of the sale, we received proceeds of $272.1 million and recorded a gain of $70.4 million in our consolidated statements of income.

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 in 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 in our consolidated statements of income and totaled $3.6 million, $2.5 million and $8.3 million, respectively, for the years ended December 31, 2020, 2021 and 2022.

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


	Year Ended December 31,
	2020		2021		2022
Transportation and terminals revenue:
BridgeTex, pipeline capacity and storage	$	42.3	$	43.7	$	48.5
Double Eagle, throughput revenue	$	4.9	$	3.0	$	2.5
Saddlehorn, storage revenue	$	2.5	$	2.3	$	2.4
Operating expense:
Seabrook, storage lease and ancillary services	$	29.1	$	19.7	$	17.5







Other operating income:

Seabrook, gain on sale of air emission credits	$	1.4	$	0.4	$	—

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


	December 31, 2021
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable
BridgeTex	$	1.2	$	—	$	0.3
Double Eagle	$	0.2	$	—	$	—
HoustonLink	$	—	$	—	$	0.2
MVP	$	—	$	0.6	$	2.2

Saddlehorn	$	—	$	0.2	$	—
Seabrook	$	—	$	0.1	$	3.2


	December 31, 2022
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable
BridgeTex	$	4.8	$	—	$	3.1
Double Eagle	$	0.2	$	—	$	—
HoustonLink	$	—	$	—	$	0.3
MVP	$	—	$	0.6	$	—

Saddlehorn	$	—	$	0.2	$	—
Seabrook	$	0.3	$	—	$	0.9

We entered into 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 11 – Leases for more details regarding this lease).

We also made purchases of transmix from MVP totaling $7.6 million and $6.5 million in 2021 and 2022, respectively.

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 (representing only our proportionate interests) follows (in millions):



Investments at December 31, 2021	$	980.8
Additional investment	0.9

Impairment losses	(58.4)
Other adjustments	0.5
Earnings of non-controlled entities:
Proportionate share of earnings	149.1
Amortization of basis differences and capitalized interest	(1.7)
Earnings of non-controlled entities	147.4
Less:
Distributions from operations of non-controlled entities	174.7
Distributions from returns of investments in non-controlled entities	2.5
Investments at December 31, 2022	$	894.0

Summarized financial information of our non-controlled entities (representing 100% of the interests in these entities) follows (in millions):


	December 31,
	2021		2022
Current assets	$	227.0	$	206.4
Noncurrent assets	2,795.7		2,727.0
Total assets	$	3,022.7	$	2,933.4
Current liabilities	$	178.6	$	187.7
Noncurrent liabilities	59.5		47.9
Total liabilities	$	238.1	$	235.6
Equity	$	2,784.6	$	2,697.8


	Year Ended December 31,
	2020		2021		2022
Revenue	$	752.7	$	733.1	$	760.7
Net income	$	471.4	$	463.4	$	463.6