Equity Investments

12 Months Ended

Dec. 31, 2014

Note 4 — Equity Investments

As of December 31, 2014, we had two investments that we account for using the equity method of accounting: Deepwater Gateway and Independence Hub, both of which are included in our Production Facilities segment.

Deepwater Gateway, L.L.C. In June 2002, we, along with Enterprise Products Partners L.P. (”Enterprise”), formed Deepwater Gateway, each with a 50% interest, to design, construct, install, own and operate a tension leg platform production hub primarily for Anadarko Petroleum Corporation's Marco Polo field in the Deepwater Gulf of Mexico. As of December 31, 2014 and 2013, our investment in Deepwater Gateway totaled $80.9 million and $85.8 million (including net capitalized interest of $1.2 million and $1.3 million), respectively.

Independence Hub, LLC. In December 2004, we acquired a 20% interest in Independence Hub, an affiliate of Enterprise. Independence Hub owns the "Independence Hub" platform located in Mississippi Canyon Block 920 in a water depth of 8,000 feet. As of December 31, 2014 and 2013, our investment in Independence Hub was $68.8 million and $72.1 million (including net capitalized interest of $3.9 million and $4.3 million), respectively.

We received the following distributions from our equity method investments during the years ended December 31, 2014, 2013 and 2012 (in thousands):


		Year Ended December 31,
		2014		2013		2012

Deepwater Gateway	$	6,150	$	7,600	$	8,157
Independence Hub		2,640		4,660		8,073
Total	$	8,790	$	12,260	$	16,230

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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