EQUITY METHOD INTERESTS

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

EQUITY METHOD INTERESTS

EQUITY METHOD INTERESTS

As of September 30, 2021 and December 31, 2020, the Company, through its ownership of Altus, had the following equity method interests in four Permian Basin long-haul pipeline entities, which are accounted for under the equity method of accounting. For each of the equity method interests, Altus has the ability to exercise significant influence based on certain governance provisions and its participation in activities and decisions that impact the management and economic performance of the equity method interests. The table below presents the ownership percentages held by the Company and associated carrying values for each entity:

	Interest	September 30, 2021		December 31, 2020
		(In millions)
Gulf Coast Express Pipeline, LLC	16.0%	$	277	$	284
EPIC Crude Holdings, LP	15.0%	165		176
Permian Highway Pipeline, LLC	26.7%	632		615
Shin Oak Pipeline (Breviloba, LLC)	33.0%	464		480
Total Altus equity method interests		$	1,538	$	1,555

As of September 30, 2021 and December 31, 2020, unamortized basis differences included in the equity method interest balances were $37 million and $38 million, respectively. These amounts represent differences in Altus’ contributions to date and Altus’ underlying equity in the separate net assets within the financial statements of the respective entities. Unamortized basis differences will be amortized into net income over the useful lives of the underlying pipeline assets.

The following table presents the activity in Altus’ equity method interests for the nine months ended September 30, 2021:

	Gulf Coast Express Pipeline LLC		EPIC Crude Holdings, LP		Permian Highway Pipeline LLC		Breviloba, LLC		Total
	(In millions)
Balance at December 31, 2020	$	284	$	176	$	615	$	480	$	1,555
Capital contributions	—		2		25		—		27
Distributions	(37)		—		(52)		(39)		(128)
Equity income (loss), net	30		(14)		44		23		83
Accumulated other comprehensive income	—		1		—		—		1
Balance at September 30, 2021	$	277	$	165	$	632	$	464	$	1,538

Summarized Combined Financial Information

The following table presents summarized selected income statement data for Altus’ equity method interests (on a 100 percent basis):

	For the Nine Months Ended September 30,
	2021		2020
	(In millions)
Operating revenues	$	812	$	531
Operating income	401		267
Net income	340		217
Other comprehensive income (loss)	4		(1)