| |
P. | UNCONSOLIDATED AFFILIATES |
Investments in Unconsolidated Affiliates - The following table sets forth our investments in unconsolidated affiliates for the periods indicated:
|
| | | | | | | | | | |
| | Net Ownership Interest | | December 31,
2013 | | December 31,
2012 |
| | | | (Thousands of dollars) |
Northern Border Pipeline | | 50% | | $ | 404,803 |
| | $ | 393,317 |
|
Overland Pass Pipeline Company | | 50% | | 466,671 |
| | 468,710 |
|
Fort Union Gas Gathering, L.L.C. | | 37% | | 125,220 |
| | 120,782 |
|
Bighorn Gas Gathering | | 49% | | 87,837 |
| | 90,428 |
|
Other | | Various | | 145,307 |
| | 148,168 |
|
Investments in unconsolidated affiliates (a) | | | | $ | 1,229,838 |
| | $ | 1,221,405 |
|
(a) - Equity method goodwill (Note A) was $224.3 million at December 31, 2013 and 2012.
Equity Earnings from Investments - The following table sets forth our equity earnings from investments for the periods indicated. All amounts in the table below are equity earnings from investments in our ONEOK Partners segment:
|
| | | | | | | | | | | | |
| | Years Ended December 31, |
| | 2013 | | 2012 | | 2011 |
| | (Thousands of dollars) |
Northern Border Pipeline | | $ | 65,046 |
| | $ | 72,705 |
| | $ | 76,365 |
|
Overland Pass Pipeline Company | | 20,461 |
| | 20,043 |
| | 19,535 |
|
Fort Union Gas Gathering, L.L.C. | | 15,826 |
| | 17,218 |
| | 15,280 |
|
Bighorn Gas Gathering | | 1,952 |
| | 3,820 |
| | 5,990 |
|
Other | | 7,232 |
| | 9,238 |
| | 10,076 |
|
Equity earnings from investments | | $ | 110,517 |
| | $ | 123,024 |
| | $ | 127,246 |
|
Unconsolidated Affiliates Financial Information - The following tables set forth summarized combined financial information of our unconsolidated affiliates for the periods indicated:
|
| | | | | | | | |
| | December 31,
2013 | | December 31,
2012 |
| | (Thousands of dollars) |
Balance Sheet | | | | |
Current assets | | $ | 155,310 |
| | $ | 175,930 |
|
Property, plant and equipment, net | | $ | 2,557,571 |
| | $ | 2,593,122 |
|
Other noncurrent assets | | $ | 34,478 |
| | $ | 35,005 |
|
Current liabilities | | $ | 98,967 |
| | $ | 145,147 |
|
Long-term debt | | $ | 442,103 |
| | $ | 472,630 |
|
Other noncurrent liabilities | | $ | 58,221 |
| | $ | 42,451 |
|
Accumulated other comprehensive loss | | $ | (2,291 | ) | | $ | (2,503 | ) |
Owners’ equity | | $ | 2,150,359 |
| | $ | 2,146,332 |
|
|
| | | | | | | | | | | | |
| | Years Ended December 31, |
| | 2013 | | 2012 | | 2011 |
| | (Thousands of dollars) |
Income Statement | | | | | | |
Operating revenues | | $ | 528,665 |
| | $ | 573,197 |
| | $ | 496,158 |
|
Costs and expenses | | $ | 256,292 |
| | $ | 269,858 |
| | $ | 221,261 |
|
Net income | | $ | 248,998 |
| | $ | 279,766 |
| | $ | 249,559 |
|
Distributions paid to us | | $ | 137,498 |
| | $ | 155,741 |
| | $ | 156,385 |
|
We incurred expenses in transactions with unconsolidated affiliates of $53.8 million, $36.5 million, and $33.7 million for 2013, 2012, and 2011, respectively, primarily related to Overland Pass Pipeline Company. Accounts payable to our equity method investees at December 31, 2013 and 2012, were not material.
Overland Pass Pipeline Company - The Overland Pass Pipeline Company limited liability company agreement provides that distributions to Overland Pass Pipeline Company’s members are to be made on a pro-rata basis according to each member’s percentage interest. The Overland Pass Pipeline Company Management Committee determines the amount and timing of such distributions. Any changes to, or suspensions of, cash distributions from Overland Pass Pipeline Company requires the unanimous approval of the Overland Pass Pipeline Management Committee. Cash distributions are equal to 100 percent of available cash as defined in the limited liability company agreement.
Northern Border Pipeline - The Northern Border Pipeline partnership agreement provides that distributions to Northern Border Pipeline’s partners are to be made on a pro-rata basis according to each partner’s percentage interest. The Northern Border Pipeline Management Committee determines the amount and timing of such distributions. Any changes to, or suspension of, the cash distribution policy of Northern Border Pipeline requires the unanimous approval of the Northern Border Pipeline Management Committee. Cash distributions are equal to 100 percent of distributable cash flow as determined from Northern Border Pipeline’s financial statements based upon EBITDA, less interest expense and maintenance capital expenditures. Loans or other advances from Northern Border Pipeline to its partners or affiliates are prohibited under its credit agreement.
During 2013, ONEOK Partners made equity contributions to Northern Border Pipeline Company of approximately $30.8 million.
In September 2012, Northern Border Pipeline filed with the FERC a settlement with its customers to modify its transportation rates. In January 2013, the settlement was approved and the new rates are effective January 1, 2013. The new long-term transportation rates are approximately 11 percent lower compared with previous rates.
