Equity Investments

12 Months Ended

Dec. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Equity Investments

Equity Investments

We have a 20% ownership interest in Independence Hub that we account for using the equity method of accounting. Independence Hub owns the “Independence Hub” platform located in Mississippi Canyon Block 920 in the U.S. Gulf of Mexico in a water depth of 8,000 feet. Since we are committed to providing our pro-rata portion of the necessary level of financial support for Independence Hub to pay its obligations as they become due, we recorded a liability of $11.2 million and $9.8 million at December 31, 2018 and 2017, respectively, for our share of the estimated obligations, net of remaining working capital. This liability is reflected in “Accrued liabilities” and “Other non-current liabilities” in the accompanying consolidated balance sheets. For the years ended December 31, 2018, 2017 and 2016, we recorded losses totaling $3.9 million, $2.4 million and $2.2 million, respectively, to account for our share of losses from Independence Hub. We did not receive any cash distributions from Independence Hub in 2016, 2017 or 2018.

We previously had a 50% ownership interest in Deepwater Gateway, the owner of a tension leg platform production hub primarily for Anadarko Petroleum Corporation’s Marco Polofield in the Deepwater Gulf of Mexico. In February 2016, we received a cash distribution of $1.2 million and sold our ownership interest in Deepwater Gateway for $25 million.