v3.25.3
EQUITY METHOD INVESTMENTS
 9 Months Ended
Sep. 30, 2025
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY METHOD INVESTMENTS EQUITY METHOD INVESTMENTS
As of September 30, 2025, the Company owned investments in the following long-haul pipeline entities in the Permian Basin. These investments were accounted for using the equity method of accounting. For each EMI pipeline entity, the Company has the ability to exercise significant influence based on certain governance provisions and its participation in the significant activities and decisions that impact the management and economic performance of the EMI pipeline. The table below presents the ownership percentages and investment balances held by the Company for each entity:
September 30,December 31,
Ownership
20252024
(In thousands)
PHP
55.5%$1,576,289 $1,607,323 
Breviloba
33.0%421,226 428,383 
Epic Crude Holdings, LP (“EPIC”) (1)
27.5%87,984 82,172 
$2,085,499 $2,117,878 
(1)The Company owned 27.5% of EPIC as of September 30, 2025. In August 2025, the Company entered into a Purchase and Sale Agreement to sell all of its equity interest in EPIC and such transaction was closed in October 2025.
The unamortized net basis included in the EMI pipeline balances were $39.3 million and $40.3 million as of September 30, 2025 and December 31, 2024, respectively. These amounts represent differences in the Company’s contributions to date and the Company’s underlying equity in the separate net assets within the financial statements of the respective entities. Unamortized basis differences are amortized or accreted on a straight-line basis into equity income of unconsolidated affiliates over the useful lives of the underlying pipeline assets. In addition, there was capitalized interest of $23.2 million and $23.9 million as of September 30, 2025 and December 31, 2024, respectively. Capitalized interest is amortized on a straight-line basis into equity income of unconsolidated affiliates.
The following table presents the activity in the Company’s EMIs for the nine months ended September 30, 2025:
Permian Highway Pipeline LLCBreviloba, LLCEPIC Crude Holdings, LPTotal
(In thousands)
Balance at December 31, 2024$1,607,323 $428,383 $82,172 $2,117,878 
Contributions and acquisitions
1,206 — — 1,206 
Distributions(1)
(165,051)(37,506)(5,500)(208,057)
Equity income, net(2)
132,811 30,349 11,312 174,472 
Balance at September 30, 2025$1,576,289 $421,226 $87,984 $2,085,499 
(1)Distributions consisted of a return on investment of $205.2 million, which was included in cash flows from operating activities, and a return of investment of $2.9 million, which was included in cash flows from investing activities.
(2)For the nine months ended September 30, 2025, equity income was net of amortization and accretion of basis differences and capitalized interests, which represents undistributed earnings, amortization of $5.9 million from PHP, $0.5 million from Breviloba, LLC, and accretion of $4.7 million from EPIC.
Summarized Financial Information
The following table represents selected data for the Company’s ongoing EMI pipelines (on a 100 percent basis) for the three and nine months ended September 30, 2025 and 2024.
Three Months Ended September 30,
20252024
Permian Highway Pipeline LLCBreviloba, LLCEPIC Crude Holdings, LPPermian Highway Pipeline LLCBreviloba, LLCEPIC Crude Holdings, LP
(In thousands)
Revenues$130,660 $56,527 $90,273 $127,719 $53,929 $97,514 
Operating income84,656 29,565 26,801 83,785 27,398 25,052 
Net income (loss)84,518 30,277 2,673 83,783 27,558 (5,159)
Nine Months Ended September 30,
20252024
Permian Highway Pipeline LLCBreviloba, LLCEPIC Crude Holdings, LPPermian Highway Pipeline LLCBreviloba, LLCEPIC Crude Holdings, LP
(In thousands)
Revenues$387,728 $171,432 $294,950 $380,359 $156,326 $284,050 
Operating income250,474 88,662 88,274 245,467 74,563 70,631 
Net income (loss)250,237 89,562 20,599 245,016 75,005 (29,889)