Equity Investments

9 Months Ended

Sep. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

As of September 30, 2015, 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. Our investment in Deepwater Gateway totaled $77.5 million and $80.9 million as of September 30, 2015 and December 31, 2014, respectively (including net capitalized interest of $1.2 million at September 30, 2015 and December 31, 2014, respectively).

Independence Hub, LLC. In December 2004, we acquired a 20% interest in Independence Hub, then 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. Our investment in Independence Hub was $66.0 million and $68.8 million as of September 30, 2015 and December 31, 2014, respectively (including capitalized interest of $3.7 million and $3.9 million at September 30, 2015 and December 31, 2014, respectively).

In July 2015, Enterprise sold its offshore Gulf of Mexico pipelines and services business to Genesis Energy, L.P. for approximately $1.5 billion. Enterprise’s ownership interests in both Deepwater Gateway and Independence Hub were included in the sale.

We received the following distributions from our equity method investments (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014

Deepwater Gateway	$	1,200	$	500	$	3,900	$	4,250
Independence Hub	560		200		1,400		1,500
Total	$	1,760	$	700	$	5,300	$	5,750