EQUITY METHOD INTERESTS

3 Months Ended

Mar. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

EQUITY METHOD INTERESTS

EQUITY METHOD INTERESTS

As of March 31, 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	March 31, 2021		December 31, 2020
		(In millions)
Gulf Coast Express Pipeline, LLC	16.0%	$	281	$	284
EPIC Crude Holdings, LP	15.0%	172		176
Permian Highway Pipeline, LLC	26.7%	639		615
Shin Oak Pipeline (Breviloba, LLC)	33.0%	475		480
Total Altus equity method interests		$	1,567	$	1,555

As of March 31, 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 three months ended March 31, 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	—		—		21		—		21
Distributions	(12)		—		(8)		(11)		(31)
Equity income (loss), net(1)	9		(5)		11		6		21
Accumulated other comprehensive income	—		1		—		—		1
Balance at March 31, 2021	$	281	$	172	$	639	$	475	$	1,567

(1)As of March 31, 2021, the amount of consolidated earnings, net of amortization basis differences, which represents undistributed earnings, was $3 million from Permian Highway Pipeline LLC.

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 Three Months Ended March 31,
	2021		2020
	(In millions)
Operating revenues	$	254	$	176
Operating income	112		86
Net income	89		77
Other comprehensive income (loss)	4		(8)