Note 8. Investments in Unconsolidated Affiliates

We own interests in a number of related businesses that are accounted for using the equity method of accounting. We group our investments in unconsolidated affiliates according to the business segment to which they relate (see Note 12 for a general discussion of our business segments). The following table shows our investments in unconsolidated affiliates by business segment at the dates indicated:

	Ownership Interest at September 30, 2011	September 30, 2011		December 31, 2010
NGL Pipelines & Services:
Venice Energy Service Company, L.L.C.	13.1%	$	34.2	$	31.9
K/D/S Promix, L.L.C. (“Promix”)	50%		40.6		43.5
Baton Rouge Fractionators LLC	32.2%		21.1		21.9
Skelly-Belvieu Pipeline Company, L.L.C.	50%		34.5		34.2
Onshore Natural Gas Pipelines & Services:
Evangeline (1)	49.5%		5.0		6.4
White River Hub, LLC (“White River Hub”)	50%		26.0		26.2
Onshore Crude Oil Pipelines & Services:
Seaway Crude Pipeline Company (“Seaway”)	50%		173.1		172.2
Offshore Pipelines & Services:
Poseidon Oil Pipeline Company, L.L.C. (“Poseidon”)	36%		55.5		57.2
Cameron Highway Oil Pipeline Company	50%		225.6		233.7
Deepwater Gateway, L.L.C.	50%		95.4		98.4
Neptune Pipeline Company, L.L.C.	25.7%		52.4		53.9
Petrochemical & Refined Products Services:
Baton Rouge Propylene Concentrator, LLC	30%		9.5		10.1
Centennial Pipeline LLC (“Centennial”)	50%		55.3		63.1
Other (2)	Various		3.5		3.6
Other Investments:
Energy Transfer Equity	13.6%		1,076.8		1,436.8
Total		$	1,908.5	$	2,293.1

(1) Evangeline refers to our ownership interests in Evangeline Gas Pipeline Company, L.P. and Evangeline Gas Corp., collectively. (2) Other unconsolidated affiliates include a 50% interest in a propylene pipeline extending from Mont Belvieu, Texas to La Porte, Texas and a 25% interest in a company that provides logistics communications solutions between petroleum pipelines and their customers.

In September 2011, Enterprise, Enbridge Energy Partners, L.P. and Anadarko Petroleum Corporation formed a joint venture, Texas Express Pipeline LLC (“TEP”), to design and construct a new NGL pipeline (the “Texas Express Pipeline”) that will originate at Skellytown, Texas and extend approximately 580 miles to our NGL fractionation and storage facilities in Mont Belvieu, Texas. Subject to regulatory approvals, the Texas Express Pipeline is expected to begin service in the second quarter of 2013. As of September 30, 2011, we owned a 45% ownership interest and a nominal investment in TEP. Significant initial contributions from the joint venture members are expected to occur during the fourth quarter of 2011.

The Other Investments segment consists of noncontrolling ownership interests in Energy Transfer Equity, which is accounted for using the equity method. At September 30, 2011, we owned 30,411,954 common units of Energy Transfer Equity. Our equity investments are part of our long-term business strategy; however, we may from time-to-time elect to divest of a portion of our long-term equity investments in order to redeploy capital. In May and July 2011, we sold a total of 8,564,136 Energy Transfer Equity common units for net cash proceeds of $333.5 million and recorded aggregate gains of $24.8 million on the sales. Proceeds from these transactions were used for general partnership purposes, including funding capital expenditures.

The following table presents our equity in income (loss) of unconsolidated affiliates by business segment for the periods presented:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2011			2010			2011			2010
NGL Pipelines & Services	$	4.3		$	5.1		$	16.4		$	12.1
Onshore Natural Gas Pipelines & Services		1.4			1.2			4.1			3.4
Onshore Crude Oil Pipelines & Services		(1.0	)		1.6			(3.1	)		7.5
Offshore Pipelines & Services		5.4			10.1			20.3			33.0
Petrochemical & Refined Products Services		(3.8	)		(0.5	)		(13.1	)		(5.8	)
Other Investments		2.3			(11.9	)		11.3			(7.0	)
Total	$	8.6		$	5.6		$	35.9		$	43.2

On occasion, the price we pay to acquire an ownership interest in a company exceeds the underlying book value of the capital accounts we acquire. Such excess cost amounts are included within the carrying values of our investments in unconsolidated affiliates. The following table presents the unamortized excess cost amounts by business segment at the dates indicated:

	September 30,		December 31,
	2011		2010
NGL Pipelines & Services	$	24.9	$	25.7
Onshore Crude Oil Pipelines & Services		19.4		19.7
Offshore Pipelines & Services		15.1		16.0
Petrochemical & Refined Products Services		2.9		3.0
Other Investments (1)		1,168.7		1,525.1
Total	$	1,231.0	$	1,589.5

(1) Holdings' investment in Energy Transfer Equity exceeded its share of the historical cost of the underlying net assets of such investee by $1.66 billion in May 2007. At September 30, 2011, this basis differential decreased to $1.17 billion (after taking into account related amortization amounts and the sale of 8.56 million Energy Transfer Equity common units during 2011) and consisted of the following: $366.5 million attributed to fixed assets; $397.7 million attributed to the incentive distribution rights (an indefinite-life intangible asset) held by Energy Transfer Equity in the cash flows of ETP; $144.4 million attributed to amortizable intangible assets and $260.1 million attributed to equity method goodwill. These unamortized excess cost amounts are being amortized over their estimated economic lives of 20-27 years, as applicable.

We amortize such excess cost amounts as a reduction in equity earnings in a manner similar to depreciation. The following table presents our amortization of such excess cost amounts by business segment for the periods presented:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2011		2010		2011		2010
NGL Pipelines & Services	$	0.3	$	0.2	$	0.8	$	0.7
Onshore Crude Oil Pipelines & Services		0.1		0.1		0.5		0.5
Offshore Pipelines & Services		0.3		0.3		0.9		0.9
Petrochemical & Refined Products Services		0.1		0.1		0.1		1.0
Other Investments		7.1		9.2		24.6		27.5
Total	$	7.9	$	9.9	$	26.9	$	30.6

Summarized Income Statement Information of Unconsolidated Affiliates

The following tables present unaudited income statement information (on a 100% basis) of our unconsolidated affiliates, aggregated by business segment, for the periods presented:

	Summarized Income Statement Information for the Three Months Ended
	September 30, 2011								September 30, 2010
	Revenues		Operating Income (Loss)			Net Income (Loss)			Revenues		Operating Income		Net Income (Loss)
NGL Pipelines & Services	$	105.2	$	20.7		$	20.5		$	78.3	$	17.3	$	17.3
Onshore Natural Gas Pipelines & Services		59.5		2.9			3.0			63.8		2.6		2.4
Onshore Crude Oil Pipelines & Services		11.9		(0.5	)		(0.5	)		16.6		5.8		5.8
Offshore Pipelines & Services		38.8		15.0			14.6			49.4		25.3		25.1
Petrochemical & Refined Products Services		5.9		(4.8	)		(6.9	)		15.1		2.5		0.2
Other Investments (1)		2,097.9		270.0			69.1			1,587.8		202.1		(15.3	)
(1) Net income for Energy Transfer Equity represents net income attributable to the partners of Energy Transfer Equity.

	Summarized Income Statement Information for the Nine Months Ended
	September 30, 2011								September 30, 2010
	Revenues		Operating Income (Loss)			Net Income (Loss)			Revenues		Operating Income		Net Income (Loss)
NGL Pipelines & Services	$	321.7	$	74.6		$	74.5		$	227.8	$	43.8	$	43.7
Onshore Natural Gas Pipelines & Services		149.7		8.2			8.3			159.8		7.0		6.7
Onshore Crude Oil Pipelines & Services		32.7		(2.1	)		(2.1	)		57.1		23.9		23.9
Offshore Pipelines & Services		128.8		51.6			50.8			155.8		81.3		80.5
Petrochemical & Refined Products Services		25.2		(17.2	)		(23.7	)		39.3		0.5		(6.6	)
Other Investments (1)		6,061.9		894.8			224.0			4,822.3		720.2		116.7
(1) Net income for Energy Transfer Equity represents net income attributable to the partners of Energy Transfer Equity.

With the exception of Energy Transfer Equity, all of these investments are in untraded privately held companies, the fair values of which are not practicable to estimate. At September 30, 2011, the fair value of our investment in Energy Transfer Equity was $1.06 billion based on the closing market price of Energy Transfer Equity's common units on that date. The market price of Energy Transfer Equity limited partner units increased subsequent to September 30, 2011.