Equity Method Investments

12 Months Ended

Dec. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Note 7. Equity Method Investments

Equity Method Investments Equity method investments are included in other noncurrent assets in the consolidated balance sheets, and our share of earnings is reported as income from equity method investees in the consolidated statements of operations. Our share of income taxes incurred directly by the equity method investees is reported in income from equity method investees and is not included in our income tax provision in our consolidated statements of operations. Investments accounted for under the equity method consist primarily of the following:


•	45% interest in Atlantic Methanol Production Company, LLC (AMPCO), which owns and operates a methanol plant and related facilities in Equatorial Guinea;


•	28% interest in Alba Plant LLC (Alba Plant), which owns and operates a liquefied petroleum gas processing plant in Equatorial Guinea;


•	50% interest in CONE Gathering LLC (CONE Gathering), which owns and operates natural gas gathering facilities servicing our joint venture properties in the Marcellus Shale; and


•	32% interest in CONE Midstream Partners, LP (CONE Midstream), which constructs, owns and operates natural gas gathering and other midstream energy assets in support of our Marcellus Shale joint venture activities.

Midstream IPO On September 24, 2014, our equity method investee, CONE Gathering, contributed a significant majority of its existing assets to a newly-formed master limited partnership, CONE Midstream, concurrently with an initial public offering of limited partner units. CONE Gathering subsequently distributed $204 million of offering proceeds to us, which is reflected within cash flows from operating activities ($48 million) and cash flows from investing activities ($156 million) within our consolidated statement of cash flows.

Equity method investments are as follows:



	December 31,
(millions)	2015		2014
Equity Method Investments
AMPCO	$	120	$	141
Alba Plant	87		82
CONE Investments⁽¹⁾	214		82
Other	32		20
Total Equity Method Investments	$	453	$	325

⁽¹⁾CONE Investments includes our investments in CONE Midstream and CONE Gathering.

Other At December 31, 2015, consolidated retained earnings included $106 million related to the undistributed earnings of equity method investees.

The carrying value of our AMPCO investment was $8 million higher than the underlying net assets of the investee at December 31, 2015. The difference is related to capitalized interest which is being amortized into earnings over the remaining useful life of the plant.

Summarized, 100% combined financial information for equity method investees is as follows:



	December 31,
(millions)	2015		2014
Balance Sheet Information
Current Assets	$	343	$	412
Noncurrent Assets	1,418		1,169
Current Liabilities	229		374
Noncurrent Liabilities	108		33



	Year Ended December 31,
(millions)	2015			2014			2013
Statements of Operations Information
Operating Revenues	$	645		$	1,142		$	1,256
Operating Expenses	393			405			388
Operating Income	252			737			868
Other (Income) Net	(9		)	(9		)	(14		)
Income Before Income Taxes	261			746			882
Income Tax Provision	46			172			212
Net Income	$	215		$	574		$	670