Note 7. Equity Method Investments

Equity Method Investments Investments accounted for under the equity method consist primarily of the following:


•	50% interest in Advantage Pipeline, which owns and operates a 70-mile crude oil pipeline in Texas (See Note 4 – Acquisitions, Divestitures and Merger);


•	50% interest in CONE Gathering, which owns and operates natural gas gathering facilities servicing the Marcellus Shale (See Note 4 – Acquisitions, Divestitures and Merger);


•	34% interest in CONE Midstream, a public master limited partnership, which constructs, owns and operates natural gas gathering and other midstream energy assets in the Marcellus Shale;


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


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

CONE Midstream Dropdown Transaction In fourth quarter 2016, CONE Midstream completed an acquisition of midstream assets (dropdown) from CONE Gathering. CONE Gathering subsequently distributed $70 million cash and additional CONE Midstream common units to us.

Equity method investments are as follows:



	December 31,
(millions)	2017		2016
Equity Method Investments
CONE Investments⁽¹⁾	$	—	$	172
AMPCO	129		120
Alba Plant	80		82
Advantage Pipeline	70		—
Other	26		26
Total Equity Method Investments	$	305	$	400


⁽¹⁾	CONE Investments include CONE Midstream and CONE Gathering. The investments are included in assets held for sale at December 31, 2017.

Other At December 31, 2017, consolidated retained earnings included $90 million related to the undistributed earnings of equity method investees.

The carrying value of our AMPCO investment was $12 million higher than the underlying net assets of the investee at December 31, 2017. 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)	2017		2016
Balance Sheet Information
Current Assets	$	390	$	313
Noncurrent Assets	588		1,390
Current Liabilities	171		149
Noncurrent Liabilities	90		256



	Year Ended December 31,
(millions)	2017			2016			2015
Statements of Operations Information
Operating Revenues	$	790		$	667		$	645
Operating Expenses	303			355			393
Operating Income	487			312			252
Other (Income) Net	(15		)	(7		)	(9		)
Income Before Income Taxes	502			319			261
Income Tax Provision	136			60			46
Net Income	$	366		$	259		$	215