Related Party Transactions
Our related parties include:
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• | Crowley Blue Water Partners, in which we have a 50 percent indirect noncontrolling interest. Crowley Blue Water Partners owns and operates three Jones Act ATB vessels. |
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• | Crowley Ocean Partners, in which we have a 50 percent indirect noncontrolling interest. Crowley Ocean Partners owns and operates Jones Act product tankers. |
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• | Illinois Extension Pipeline Company, L.L.C. (“Illinois Extension Pipeline”), in which we have a 35 percent noncontrolling interest. Illinois Extension Pipeline owns and operates the Southern Access Extension (“SAX”) crude oil pipeline. |
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• | LOCAP, in which we have a 59 percent noncontrolling interest. LOCAP owns and operates a crude oil pipeline. |
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• | LOOP, in which we have a 51 percent noncontrolling interest. LOOP owns and operates the only U.S. deepwater crude oil port. |
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• | MarkWest Utica EMG, in which we have a 56 percent noncontrolling interest. MarkWest Utica EMG is engaged in natural gas processing and NGL fractionation, transportation and marketing in Ohio. |
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• | Ohio Gathering, in which we have a 34 percent indirect noncontrolling interest. Ohio Gathering is a subsidiary of MarkWest Utica EMG providing natural gas gathering service in the Utica Shale region of eastern Ohio. |
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• | PFJ Southeast, in which we have a 29 percent noncontrolling interest. PFJ Southeast owns and operates travel plazas primarily in the Southeast region of the United States. |
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• | Sherwood Midstream, in which we have a 50 percent noncontrolling interest. Sherwood Midstream supports the development of Antero Resources Corporation’s Marcellus Shale acreage in West Virginia. |
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• | Sherwood Midstream Holdings, in which we have an 81 percent direct and indirect noncontrolling interest. Sherwood Midstream Holdings owns certain infrastructure at the Sherwood Complex that is shared by and supports the operation of both the Sherwood Midstream and MarkWest gas processing plants and deethanization facilities. |
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• | The Andersons Albion Ethanol LLC (“TAAE”), in which we have a 45 percent noncontrolling interest, The Andersons Clymers Ethanol LLC (“TACE”), in which we have a 61 percent noncontrolling interest and The Andersons Marathon Ethanol LLC (“TAME”), in which we have a 67 percent noncontrolling interest. These companies each own and operate an ethanol production facility. |
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• | Other equity method investees. |
We believe that transactions with related parties were conducted on terms comparable to those with unaffiliated parties.
Sales to related parties were as follows: |
| | | | | | | |
| Three Months Ended
March 31, |
(In millions) | 2018 | | 2017 |
PFJ Southeast | $ | 169 |
| | $ | 151 |
|
Other equity method investees | 3 |
| | 3 |
|
Total | $ | 172 |
| | $ | 154 |
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Sales to related parties consists primarily of sales of refined products.
Other income from related parties, which is included in “Other income” on the accompanying consolidated statements of income, were as follows: |
| | | | | | | |
| Three Months Ended
March 31, |
(In millions) | 2018 | | 2017 |
MarkWest Utica EMG | $ | 4 |
| | $ | 4 |
|
Ohio Gathering | 4 |
| | 4 |
|
Sherwood Midstream | 3 |
| | 1 |
|
Other equity method investees | 2 |
| | 2 |
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Total | $ | 13 |
| | $ | 11 |
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Other income from related parties consists primarily of fees received for operating transportation assets for our related parties.
Purchases from related parties were as follows:
|
| | | | | | | |
| Three Months Ended
March 31, |
(In millions) | 2018 | | 2017 |
Crowley Blue Water Partners | $ | 16 |
| | $ | 14 |
|
Crowley Ocean Partners | 20 |
| | 19 |
|
Illinois Extension Pipeline | 24 |
| | 25 |
|
LOCAP | 4 |
| | 5 |
|
LOOP | 17 |
| | 13 |
|
TAAE | 19 |
| | 8 |
|
TACE | 8 |
| | 16 |
|
TAME | 20 |
| | 17 |
|
Other equity method investees | 13 |
| | 5 |
|
Total | $ | 141 |
| | $ | 122 |
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Related party purchases from Crowley Blue Water Partners and Crowley Ocean Partners consist of leasing marine equipment primarily used to transport refined products. Related party purchases from Illinois Extension Pipeline, LOCAP, LOOP and other equity method investees consist primarily of crude oil transportation costs. Related party purchases from TAAE, TACE and TAME consist of ethanol purchases.
Receivables from related parties, which are included in “Receivables, less allowance for doubtful accounts” on the accompanying consolidated balance sheets, were as follows:
|
| | | | | | | |
(In millions) | March 31,
2018 | | December 31,
2017 |
PFJ Southeast | $ | 30 |
| | $ | 28 |
|
Sherwood Midstream Holdings | 15 |
| | — |
|
Other equity method investees | 7 |
| | 8 |
|
Total | $ | 52 |
| | $ | 36 |
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The long-term receivable, which is included in “Other noncurrent assets” on the accompanying consolidated balance sheet, was $1 million at March 31, 2018 and $1 million at December 31, 2017.
Payables to related parties, which are included in “Accounts payable” on the accompanying consolidated balance sheets, were as follows:
|
| | | | | | | |
(In millions) | March 31,
2018 | | December 31,
2017 |
Illinois Extension Pipeline | $ | 7 |
| | $ | 8 |
|
LOOP | 2 |
| | 3 |
|
MarkWest Utica EMG | 20 |
| | 29 |
|
Ohio Gathering | 1 |
| | 9 |
|
Sherwood Midstream | 11 |
| | 8 |
|
Other equity method investees | 10 |
| | 12 |
|
Total | $ | 51 |
| | $ | 69 |
|
Summarized financial information, in the aggregate, for our significant equity method investments on a 100 percent basis were as follows:
|
| | | | | | | |
| Three Months Ended
March 31, |
(In millions) | 2018 | | 2017 |
Revenues and other income | $ | 1,132 |
| | $ | 1,027 |
|
Income from operations | 73 |
| | 82 |
|
Net income | 71 |
| | 81 |
|