v3.26.1
EQUITY METHOD INVESTMENTS
 3 Months Ended
Mar. 31, 2026
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY METHOD INVESTMENTS EQUITY METHOD INVESTMENTS
As of March 31, 2026, 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:
March 31,December 31,
Ownership
20262025
(In thousands)
PHP
55.5%$1,579,875 $1,591,384 
Breviloba
33.0%411,729 417,341 
$1,991,604 $2,008,725 
The unamortized, net basis differences included in the EMI pipeline balances were $191.7 million and $193.6 million as of March 31, 2026 and December 31, 2025, 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 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 $22.8 million and $23.0 million as of March 31, 2026 and December 31, 2025, 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 three months ended March 31, 2026:
Permian Highway Pipeline LLCBreviloba, LLCTotal
(In thousands)
Balance at December 31, 2025$1,591,384 $417,341 $2,008,725 
Distributions(1)
(56,619)(11,690)(68,309)
Equity income, net(2)
45,110 6,078 51,188 
Balance at March 31, 2026$1,579,875 $411,729 $1,991,604 
(1)Distributions consisted of a return on investment of $68.3 million, which was included in cash flows from operating activities.
(2)For the three months ended March 31, 2026, equity income was net of amortization of basis differences and capitalized interest, which represents undistributed earnings, of $2.0 million from PHP and $0.2 million from Breviloba, LLC.
Summarized Financial Information
The following table represents selected data for the Company’s ongoing EMI pipelines (on a 100 percent basis) for the three months ended March 31, 2026 and 2025.
Three Months Ended March 31,
20262025
Permian Highway Pipeline LLCBreviloba, LLCPermian Highway Pipeline LLCBreviloba, LLC
(In thousands)
Revenues$128,686 $39,769 $128,306 $59,492 
Operating income84,884 19,969 82,572 31,976 
Net income84,741 19,856 82,649 31,991