Annual report pursuant to Section 13 and 15(d)

Equity Method Investment

v3.6.0.2
Equity Method Investment
12 Months Ended
Dec. 31, 2016
Equity Method Investment  
Equity Method Investment

(11)Equity Method Investment

 

Our combined consolidated net income includes the Partnership’s proportionate share of the net income (loss) of equity method investees. When the Partnership records its proportionate share of net income (loss), it increases (decreases) equity income in the combined consolidated statements of operations and comprehensive income and the carrying value of that investment. The Partnership uses the equity method of accounting to account for its investment in Stonewall Gas Gathering LLC (“Stonewall”) because it is a limited liability company, which maintains separate capital accounts, and the Partnership exercises significant influence over the entity. Our judgment regarding the level of influence over the Stonewall investment includes considering key factors such as the Partnership’s ownership interest, representation on the board of directors and participation in policy-making decisions of Stonewall.

 

The Partnership invested in Stonewall in 2016 and had no investment in Stonewall or related equity in earnings in 2015. The carrying value of the Partnership’s investment in Stonewall was $68.3 million, net of distributions received in 2016 of $7.7 million, at December 31, 2016, and is included in the “Investment in unconsolidated affiliates” line item on the condensed combined consolidated balance sheet. The Partnership’s share of Stonewall’s net income was $0.5 million for the year ended December 31, 2016, and is included in “Equity in earnings of unconsolidated affiliates” on the condensed combined statement of operations and comprehensive income.