Equity Investments

9 Months Ended

Sep. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

We have a 20% ownership interest in Independence Hub, LLC (“Independence Hub”) that we account for using the equity method of accounting. We previously had a 50% ownership interest in Deepwater Gateway, L.L.C., which we sold in February 2016 to a subsidiary of Genesis Energy, L.P., the other owner, for $25 million with no resulting gain or loss. Both equity investments are included in our Production Facilities segment.

Independence Hub owns the “Independence Hub” platform located in Mississippi Canyon Block 920 in a water depth of 8,000 feet. Our share of the losses reported by Independence Hub exceeded the carrying amount of our investment by $8.4 million as of September 30, 2016 and $8.3 million at December 31, 2015 reflecting our share of Independence Hub’s obligations (primarily its estimated asset retirement obligations to decommission the platform), net of remaining working capital. This liability is reflected in “Other non-current liabilities” in the accompanying condensed consolidated balance sheets.

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015

Deepwater Gateway	$	—	$	1,200	$	1,200	$	3,900
Independence Hub	—		560		—		1,400
Total	$	—	$	1,760	$	1,200	$	5,300