December 31, | |||||||
2013 | 2012 | ||||||
Midcontinent Express Pipeline LLC | $ | 602 | $ | 633 | |||
EagleHawk | 272 | 208 | |||||
Plantation Pipe Line Company | 179 | 181 | |||||
Red Cedar Gathering Company | 176 | 172 | |||||
Fort Union Gas Gathering L.L.C. | 161 | — | |||||
Double Eagle Pipeline LLC | 144 | — | |||||
Fayetteville Express Pipeline LLC | 144 | 159 | |||||
Parkway Pipeline LLC | 131 | 58 | |||||
Watco Companies, LLC | 103 | 103 | |||||
Cortez Pipeline Company | 12 | 11 | |||||
Eagle Ford | n/a | 151 | |||||
All others | 301 | 180 | |||||
Total equity investments | $ | 2,225 | $ | 1,856 | |||
Bond investments | 8 | 8 | |||||
Total investments | $ | 2,233 | $ | 1,864 |
▪ | Midcontinent Express Pipeline LLC—we operate and own a 50% ownership interest in MEP, the sole owner of the Midcontinent Express natural gas pipeline system. The remaining 50% ownership interest is owned by subsidiaries of Regency Energy Partners, L.P.; |
▪ | BHP Billiton Petroleum (Eagle Ford Gathering) LLC, f/k/a EagleHawk Field Services LLC and referred to in this report as EagleHawk—we own a 25% ownership interest in EagleHawk, the sole owner of a natural gas gathering system serving the producers of the Eagle Ford shale formation. A subsidiary of BHP Billiton operates EagleHawk and owns the remaining 75% ownership interest; |
▪ | Plantation Pipe Line Company—we operate and own a 51.17% ownership interest in Plantation, the sole owner of the Plantation refined petroleum products pipeline system. A subsidiary of Exxon Mobil Corporation owns the remaining interest. Each investor has an equal number of directors on Plantation’s board of directors, and board approval is required for certain corporate actions that are considered participating rights; therefore, we do not control Plantation, and we account for our investment under the equity method; |
▪ | Red Cedar Gathering Company—we own a 49% ownership interest in Red Cedar, the sole owner of the Red Cedar natural gas gathering, compression and treating system. The remaining 51% interest is owned by the Southern Ute Indian Tribe; |
▪ | Fayetteville Express Pipeline LLC—we own a 50% ownership interest in Fayetteville Express Pipeline LLC, the sole owner of the Fayetteville Express natural gas pipeline system. Energy Transfer Partners, L.P. owns the remaining 50% interest and serves as operator of Fayetteville Express Pipeline LLC; |
▪ | Parkway Pipeline LLC—we operate and own a 50% ownership interest in Parkway, the sole owner of the Parkway Pipeline refined petroleum products pipeline system. Valero Energy Corp. owns the remaining 50% interest; |
▪ | Watco Companies, LLC—we hold a preferred equity investment in Watco Companies, LLC, the largest privately held short line railroad company in the U.S. We own 100,000 Class A preferred shares and pursuant to the terms of our investment, we receive priority, cumulative cash distributions from the preferred shares at a rate of 3.25% per quarter, and we participate partially in additional profit distributions at a rate equal to 0.5%. The preferred shares have no conversion features and hold no voting powers, but do provide us certain approval rights, including the right to appoint one of the members to Watco’s Board of Managers; and |
▪ | Cortez Pipeline Company—we operate and own a 50% ownership interest in Cortez Pipeline Company, the sole owner of the Cortez carbon dioxide pipeline system. A subsidiary of Exxon Mobil Corporation owns a 37% ownership interest and Cortez Vickers Pipeline Company owns the remaining 13% ownership interest. |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Plantation Pipe Line Company | $ | 56 | $ | 51 | $ | 45 | |||||
Fayetteville Express Pipeline LLC | 55 | 55 | 24 | ||||||||
Midcontinent Express Pipeline LLC | 40 | 42 | 43 | ||||||||
Red Cedar Gathering Company | 31 | 32 | 32 | ||||||||
Cortez Pipeline Company | 24 | 25 | 24 | ||||||||
Eagle Ford(a) | 14 | 34 | 11 | ||||||||
Watco Companies, LLC | 13 | 13 | 6 | ||||||||
Fort Union Gas Gathering L.L.C. | 11 | — | — | ||||||||
EagleHawk | 9 | 11 | 3 | ||||||||
Parkway Pipeline LLC | 1 | — | — | ||||||||
Double Eagle Pipeline LLC | 1 | — | — | ||||||||
KinderHawk(b) | — | — | 22 | ||||||||
All others | 42 | 32 | 14 | ||||||||
Total | $ | 297 | $ | 295 | $ | 224 | |||||
Amortization of excess costs | $ | (10 | ) | $ | (7 | ) | $ | (7 | ) |
(a) | Effective May 1, 2013, we acquired the remaining 50% equity ownership interest in Eagle Ford that we did not already own and we changed our method of accounting from the equity method to full consolidation. |
(b) | Effective July 1, 2011, we acquired the remaining 50% equity ownership interest in KinderHawk that we did not already own and we changed our method of accounting from the equity method to full consolidation. |
Year Ended December 31, | |||||||||||
Income Statement | 2013 | 2012 | 2011 | ||||||||
Revenues | $ | 1,655 | $ | 2,199 | $ | 2,313 | |||||
Costs and expenses | 1,186 | 1,617 | 1,747 | ||||||||
Net income | $ | 469 | $ | 582 | $ | 566 |
December 31, | |||||||
Balance Sheet | 2013 | 2012 | |||||
Current assets | $ | 483 | $ | 440 | |||
Non-current assets | $ | 5,827 | $ | 5,736 | |||
Current liabilities | $ | 895 | $ | 1,009 | |||
Non-current liabilities | $ | 2,053 | $ | 2,015 | |||
Partners’/Owners’ equity | $ | 3,362 | $ | 3,152 |