v3.25.0.1
Investments in Unconsolidated Affiliates
 12 Months Ended
Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Affiliates

Note 7 — Investments in Unconsolidated Affiliates

 

Our investments in unconsolidated affiliates consist of the following:

 

Gathering and Processing Segment

•
50% operated ownership interest in Little Missouri 4.

 

Logistics and Transportation Segment

•
38.8% operated ownership interest in GCF;
•
50% operated ownership interest in Cayenne; and
•
17.5% non-operated ownership interest in Blackcomb.

 

The terms of these joint venture agreements do not afford us the degree of control required for consolidating the entities in our consolidated financial statements, but do afford us the significant influence required to employ the equity method of accounting.

 

In April 2022, we completed the South Texas Acquisition. Prior to closing the South Texas Acquisition, we had two operated joint ventures in South Texas: a 75% interest in T2 LaSalle Gathering Company L.L.C. (“T2 LaSalle”) and a 50% interest in T2 Eagle Ford Gathering Company L.L.C. (“T2 Eagle Ford” and, together with T2 LaSalle, the “T2 Joint Ventures”). Following the closing of the South Texas Acquisition, we own 100% of the interest in the T2 Joint Ventures.

 

In May 2022, we completed the GCX Sale. Prior to the GCX Sale, we owned a 25% non-operated ownership interest in GCX. Following the announcement of the GCX Sale in February 2022, we ceased recognizing equity earnings (loss) due to the terms of the sales agreement. As a result of the GCX Sale, we recognized a gain of $435.9 million in Gain (loss) from sale of equity method investment in our Consolidated Statements of Operations in 2022.

 

In July 2024, we entered into an agreement with WPC to move forward with the construction of the Blackcomb pipeline.

 

See Note 4 – Acquisitions and Divestitures for additional information related to the above transactions.

 

The following table shows the activity related to our investments in unconsolidated affiliates:

 

 

 

Balance at December 31, 2021

 

 

Equity Earnings (Loss)

 

 

Cash Distributions

 

 

Disposition/
Consolidation

 

 

Contributions

 

 

Balance at December 31, 2022

 

GCX

 

$

421.0

 

 

$

5.7

 

 

$

(14.3

)

 

$

(412.4

)

 

$

—

 

 

$

—

 

Little Missouri 4

 

 

98.1

 

 

 

5.5

 

 

 

(12.9

)

 

 

—

 

 

 

—

 

 

 

90.7

 

GCF (1)

 

 

28.8

 

 

 

(3.2

)

 

 

—

 

 

 

—

 

 

 

1.5

 

 

 

27.1

 

T2 Eagle Ford (2)

 

 

21.9

 

 

 

(0.6

)

 

 

(0.8

)

 

 

(20.5

)

 

 

—

 

 

 

—

 

T2 LaSalle (2)

 

 

4.2

 

 

 

(0.3

)

 

 

—

 

 

 

(3.9

)

 

 

—

 

 

 

—

 

Cayenne

 

 

12.5

 

 

 

2.0

 

 

 

(1.0

)

 

 

—

 

 

 

—

 

 

 

13.5

 

Total

 

$

586.5

 

 

$

9.1

 

 

$

(29.0

)

 

$

(436.8

)

 

$

1.5

 

 

$

131.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2022

 

 

Equity Earnings (Loss)

 

 

Cash Distributions

 

 

Disposition/
Consolidation

 

 

Contributions

 

 

Balance at December 31, 2023

 

Little Missouri 4

 

$

90.7

 

 

$

7.7

 

 

$

(11.3

)

 

$

—

 

 

$

—

 

 

$

87.1

 

GCF (1)

 

 

27.1

 

 

 

(4.1

)

 

 

(2.0

)

 

 

—

 

 

 

24.6

 

 

 

45.6

 

Cayenne

 

 

13.5

 

 

 

5.4

 

 

 

(5.3

)

 

 

—

 

 

 

—

 

 

 

13.6

 

Total

 

$

131.3

 

 

$

9.0

 

 

$

(18.6

)

 

$

—

 

 

$

24.6

 

 

$

146.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2023

 

 

Equity Earnings (Loss)

 

 

Cash Distributions

 

 

Disposition/
Consolidation

 

 

Contributions

 

 

Balance at December 31, 2024

 

Little Missouri 4

 

$

87.1

 

 

$

14.4

 

 

$

(17.2

)

 

$

—

 

 

$

—

 

 

$

84.3

 

GCF (1)

 

 

45.6

 

 

 

(11.8

)

 

 

—

 

 

 

—

 

 

 

32.6

 

 

 

66.4

 

Cayenne

 

 

13.6

 

 

 

6.8

 

 

 

(8.1

)

 

 

—

 

 

 

—

 

 

 

12.3

 

Blackcomb

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

30.3

 

 

 

30.3

 

Total

 

$

146.3

 

 

$

9.4

 

 

$

(25.3

)

 

$

—

 

 

$

62.9

 

 

$

193.3

 

 

(1)
In January 2021, the GCF facility was temporarily idled and Targa assumed operatorship in the first half of 2021. In January 2023, we reached an agreement with our partners to reactivate the GCF facility. We expect the reactivation of GCF to be complete and the facility to be operational in the first quarter of 2025.
(2)
Following the closing of the South Texas Acquisition in April 2022, the T2 Joint Ventures are 100% owned and consolidated by Targa.