Equity Investments

As of December 31, 2015, we had ownership interests in 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 $26.2 million and $80.9 million as of December 31, 2015 and 2014, respectively (including net capitalized interest of $1.2 million as of December 31, 2014). For the year ended December 31, 2015, we recorded losses totaling $49.4 million to account for our 50% share of losses from Deepwater Gateway and to write off the remaining capitalized interest of $1.2 million. These losses included our share of an impairment charge that Deepwater Gateway recorded in December 2015 (see below).

Independence Hub, LLC. In December 2004, we acquired a 20% interest in Independence Hub, an affiliate of Enterprise. In connection with the acquisition, we paid a $1.0 million participation fee. 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, our investment in Independence Hub was $68.8 million (including net capitalized interest of $3.9 million). As of December 31, 2015, our share of the losses reported by Independence Hub exceeded the carrying amount of our investment by $8.3 million. This liability is reflected in “Other non-current liabilities” in the accompanying consolidated balance sheet. For the year ended December 31, 2015, we recorded losses totaling $74.9 million to account for our 20% share of losses from Independence Hub and to write off the $1.0 million participation fee and the remaining capitalized interest of $3.6 million. These losses included our share of an impairment charge that Independence Hub recorded in December 2015 (see below).

In July 2015, Enterprise sold its offshore Gulf of Mexico pipelines and services business to Genesis Energy, L.P. (“Genesis”) for approximately $1.5 billion. Enterprise’s ownership interests in both Deepwater Gateway and Independence Hub were included in the sale. In December 2015, we were notified by Genesis that the operator of the facility no longer forecasted utilization of the “Independence Hub” platform and planned to turn over the platform for decommissioning. In December 2015, Independence Hub recorded an impairment charge of $343.3 million to reduce the carrying amount of the platform assets to their estimated fair value of zero. Independence Hub’s estimated asset retirement obligations as of December 31, 2015 amounted to $42.1 million reflecting the estimated costs to decommission the platform. Since we are committed to providing the necessary level of financial support to enable Independence Hub to pay its obligations as they become due, we recorded a liability of $8.3 million for our share of the estimated obligations, net of remaining working capital. Additionally in December 2015, Deepwater Gateway recorded an impairment charge of $96.7 million to reduce the carrying amount of its long-lived assets to their estimated fair value of $70.8 million. Deepwater Gateway’s estimated asset retirement obligations as of December 31, 2015 amounted to $20.8 million. In February 2016, we received a cash distribution of $1.2 million and sold our ownership interest in Deepwater Gateway to a subsidiary of Genesis for $25 million.

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



	Year Ended December 31,
	2015		2014		2013

Deepwater Gateway	$	5,200	$	6,150	$	7,600
Independence Hub	1,800		2,640		4,660
Total	$	7,000	$	8,790	$	12,260

The summarized aggregated financial information related to our equity method investments is as follows (in thousands):



	Year Ended December 31,
	2015			2014		2013

Revenues	$	14,791		$	23,284	$	32,943
Operating income (loss)	(448,138		)	411		10,058
Net income (loss)	(448,138		)	411		10,058



	December 31,
	2015		2014

Current assets	$	3,181	$	7,898
Non-current assets	70,812		475,789
Current liabilities	180		50
Non-current liabilities	62,951		5,237