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EQUITY METHOD INVESTMENTS
 9 Months Ended
Sep. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY METHOD INVESTMENTS EQUITY METHOD INVESTMENTS
As of September 30, 2023, the Company owned investments in the following long-haul pipeline entities in the Permian Basin. These investments were accounted for using the equity method of accounting. For each EMI pipeline entity, the Company has the ability to exercise significant influence based on certain governance provisions and its participation in the significant activities and decisions that impact the management and economic performance of the EMI pipeline. The table below presents the ownership percentages and investment balances held by the Company for each entity:
September 30,December 31,
Ownership20232022
(In thousands)
PHP
53.3%$1,638,319 $1,474,800 
Breviloba
33.0%446,314 455,057 
GCX
16.0%434,580 451,483 
$2,519,213 $2,381,340 
Additionally, as of September 30, 2023, the Company owned 15.0% of Epic Crude Holdings, LP (“EPIC”). However, no dollar value was assigned through the Transaction’s purchase price allocation as an adjustment was made to eliminate equity in losses of EPIC. No additional contribution was made to EPIC and no distribution or equity income was received from EPIC during the three and nine months ended September 30, 2023.
The unamortized basis differences included in the EMI pipeline balances were $352.8 million and $363.2 million as of September 30, 2023 and December 31, 2022, respectively. These amounts represent differences in the Company’s contributions to date and the Company’s underlying equity in the separate net assets within the financial statements of the respective entities. Unamortized basis differences will be amortized into equity income over the useful lives of the underlying pipeline assets. There was capitalized interest of $21.6 million and $13.4 million as of September 30, 2023 and December 31, 2022, respectively. Capitalized interest is amortized on a straight-line basis into equity income.
The following table presents the activity in the Company’s EMIs for the nine months ended September 30, 2023:
Permian Highway Pipeline LLCBreviloba, LLCGulf Coast Express Pipeline LLCTotal
(In thousands)
Balance at December 31, 2022$1,474,800 $455,057 $451,483 $2,381,340 
Contributions194,124 — — 194,124 
Distributions(1)
(134,095)(32,515)(45,074)(211,684)
Capitalized interest8,605 — — 8,605 
Equity income, net(2)
94,885 23,772 28,171 146,828 
Balance at September 30, 2023$1,638,319 $446,314 $434,580 $2,519,213 
(1)Distributions consisted of distributions from a return on investment of $205.9 million, which was included in cash flow from operating activities and distribution from a return of investment of $5.8 million, which was included in cash flow from investing activities.
(2)For the nine months ended September 30, 2023, net of amortization of basis differences and capitalized interests, which represents undistributed earnings, the amortization was $5.6 million from PHP, $0.5 million from Breviloba, LLC and $4.7 million from GCX.
Summarized Financial Information
The following tables represent selected data for the Company’s EMI pipelines (on a 100 percent basis) for the three and nine months ended September 30, 2023 and 2022.
Three Months Ended September 30,
20232022
Permian Highway Pipeline LLCBreviloba, LLCGulf Coast Express Pipeline LLCPermian Highway Pipeline LLCBreviloba, LLCGulf Coast Express Pipeline LLC
(In thousands)
Revenues$99,923 $51,002 $91,901 $100,114 $53,120 $91,800 
Operating income65,549 25,170 68,531 69,851 22,205 70,870 
Net income66,630 25,223 68,327 69,926 22,060 70,742 
Nine Months Ended September 30,
20232022
Permian Highway Pipeline LLCBreviloba, LLCGulf Coast Express Pipeline LLCPermian Highway Pipeline LLCBreviloba, LLCGulf Coast Express Pipeline LLC
(In thousands)
Revenues$291,859 $143,544 $272,509 $296,779 $151,732 $272,542 
Operating income185,862 69,666 200,004 190,620 73,877 199,130 
Net income190,662 70,086 205,818 190,446 73,711 198,732