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EQUITY METHOD INVESTMENTS
 6 Months Ended
Jun. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY METHOD INVESTMENTS EQUITY METHOD INVESTMENTS
As of June 30, 2022, 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 equity method investment (“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:
OwnershipJune 30, 2022December 31, 2021
(In thousands)
Permian Highway Pipeline LLC(1)
53.3%$1,416,318 $626,477 
Breviloba, LLC (Shin Oak)33.0%465,444 — 
Gulf Coast Express Pipeline LLC16.0%460,549 — 
$2,342,311 $626,477 
(1) Ownership for Permian Highway Pipeline LLC (“PHP”) was 53.3% and 26.7% as of June 30, 2022 and December 31, 2021, respectively.
Additionally, as of June 30, 2022, the Company owned 15.0% of Epic Crude Holdings, LP (“EPIC”). However, no dollar value was assigned through the purchase price allocation as 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 six months ended June 30, 2022.
As of June 30, 2022, the unamortized basis differences included in the EMI pipelines balances were $414.3 million. There was no unamortized basis difference as of December 31, 2021. 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 $12.2 million and $12.8 million as of June 30, 2022 and December 31, 2021, 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 six months ended June 30, 2022:
Permian Highway Pipeline LLCBreviloba, LLCGulf Coast Express Pipeline LLC
Total(2)
(In thousands)
Balance at December 31, 2021$626,477 $— $— $626,477 
Acquisitions815,000 470,000 470,000 1,755,000 
Contributions2,675 — — 2,675 
Distributions(79,508)(16,868)(21,168)(117,544)
Equity income, net(1)
51,674 12,312 11,717 75,703 
Balance at June 30, 2022$1,416,318 $465,444 $460,549 $2,342,311 
(1)For the six months ended June 30, 2022, net of amortization of basis differences and capitalized interests, which represents undistributed earnings, the amortization was $3.3 million from Permian Highway Pipeline LLC, $0.3 million from Breviloba, LLC and $2.7 million from Gulf Coast Express Pipeline, LLC.
(2)The EMIs acquired in the Transaction are included in the results from February 22, 2022 to June 30, 2022, and this is also the case for the additional 26.67% of PHP that was acquired in the Transaction. The results of the legacy ALTM business are not included in the Company’s consolidated financials prior to February 22, 2022. Refer to Note 1—Description of the Organization and Summary of Significant Accounting Policies in the Notes to our Condensed Consolidated Financial Statements of this Form 10-Q, for further information on the Company’s basis of presentation.
Summarized Financial Information
The following tables represent selected statement of operations data for the Company’s EMI pipelines (on a 100 percent basis) for the three and six months ended June 30, 2022 and 2021.
Three Months Ended June 30,
20222021
Permian Highway Pipeline LLCBreviloba, LLCGulf Coast Express Pipeline LLC
Permian Highway Pipeline LLC(1)
Breviloba, LLC(1)
Gulf Coast Express Pipeline LLC(1)
(In thousands)
Revenues$98,808 $50,091 $90,769 $99,366 $47,447 $90,703 
Operating income61,294 25,359 64,816 62,444 28,002 60,766 
Net income61,307 25,284 64,461 62,329 27,645 60,551 
Six Months Ended June 30,
20222021
Permian Highway Pipeline LLCBreviloba, LLCGulf Coast Express Pipeline LLC
Permian Highway Pipeline LLC(1)
Breviloba, LLC(1)
Gulf Coast Express Pipeline LLC(1)
(In thousands)
Revenues$196,664 $98,612 180,742 $197,214 $81,976 $179,072 
Operating income120,770 51,672 128,259 105,02445,302120,874 
Net income120,520 51,651 127,990 104,90945,004120,319 
(1) For the three and six months ended June 30, 2021, the Company only had equity interest in Permian Highway Pipeline LLC.