Note 7. Investments in Unconsolidated Affiliates

The following table presents our investments in unconsolidated affiliates by business segment at the dates indicated. Unless noted otherwise, we account for these investments using the equity method.

	Ownership Interest at March 31, 2012	March 31, 2012		December 31, 2011
NGL Pipelines & Services:
Venice Energy Service Company, L.L.C.	13.1%	$	34.8	$	35.5
K/D/S Promix, L.L.C.	50%		41.6		40.7
Baton Rouge Fractionators LLC	32.2%		20.9		21.0
Skelly-Belvieu Pipeline Company, L.L.C.	50%		39.6		35.0
Texas Express Pipeline LLC	45%		49.8		13.9
Onshore Natural Gas Pipelines & Services:
Evangeline (1)	49.5%		3.9		4.4
White River Hub, LLC	50%		25.4		25.7
Onshore Crude Oil Pipelines & Services:
Seaway Crude Pipeline LLC	50%		164.6		170.7
Offshore Pipelines & Services:
Poseidon Oil Pipeline Company, L.L.C. ("Poseidon")	36%		52.7		55.4
Cameron Highway Oil Pipeline Company	50%		220.8		222.8
Deepwater Gateway, L.L.C.	50%		93.8		94.6
Neptune Pipeline Company, L.L.C.	25.7%		50.0		51.1
Southeast Keathley Canyon Pipeline Company L.L.C.	50%		33.7		1.0
Petrochemical & Refined Products Services:
Baton Rouge Propylene Concentrator, LLC	30%		9.0		9.5
Centennial Pipeline LLC ("Centennial")	50%		51.4		51.8
Other (2)	Various		3.3		3.4
Other Investments:
Energy Transfer Equity (3)	1.3%		--		1,023.1
Total		$	895.3	$	1,859.6

(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. (3) Effective January 18, 2012, our investment in Energy Transfer Equity common units is no longer accounted for using the equity method (see below).

At December 31, 2011, we owned 29,303,514 common units of Energy Transfer Equity. On January 18, 2012, we sold 22,762,636 of these common units in a private transaction, which generated cash proceeds of approximately $825.1 million and a gain on the sale of $27.5 million. Following the completion of the January 18 transaction, our ownership percentage in Energy Transfer Equity was below 3%, and we discontinued using the equity method to account for this investment and began accounting for the remaining units as an investment in available-for-sale equity securities. For the period January 1, 2012 to January 18, 2012, we recorded an estimated $2.4 million of equity earnings from Energy Transfer Equity, which is presented as a component of "Operating income." Following the January 18 transaction, we sold an additional 3,569,232 Energy Transfer Equity common units through March 31, which generated cash proceeds of approximately $150.8 million and aggregate gains on these sales of $25.8 million. Gains on the first quarter of 2012 sales are presented as a component of "Other income." Proceeds from these sales were used for general company purposes, including funding capital expenditures.

At March 31, 2012, we owned 2,971,646 common units of Energy Transfer Equity, which represented approximately 1.3% of its common units outstanding on April 3, 2012. The $119.8 million carrying value of these available-for-sale equity securities is a component of "Prepaid and other current assets" as presented on our Unaudited Condensed Consolidated Balance Sheet at March 31, 2012. Accumulated other comprehensive income (loss) at March 31, 2012 includes $15.8 million of unrealized gains related to these available-for-sale equity securities. We sold the remainder of our investment in Energy Transfer Equity in April 2012.

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

	For the Three Months
	Ended March 31,
	2012			2011
NGL Pipelines & Services	$	5.2		$	5.9
Onshore Natural Gas Pipelines & Services		1.4			1.2
Onshore Crude Oil Pipelines & Services		0.5			(0.5	)
Offshore Pipelines & Services		6.9			8.3
Petrochemical & Refined Products Services		(6.5	)		(5.0	)
Other Investments (1)		2.4			6.3
Total	$	9.9		$	16.2

(1) With respect to the first quarter of 2012, amount presented reflects our estimated equity in the income of Energy Transfer Equity from January 1, 2012 to January 18, 2012.

The following table presents unamortized excess cost amounts by business segment at the dates indicated:

	March 31, 2012		December 31, 2011
NGL Pipelines & Services	$	24.5	$	24.7
Onshore Crude Oil Pipelines & Services		19.0		19.2
Offshore Pipelines & Services		14.5		14.8
Petrochemical & Refined Products Services		2.8		2.9
Other Investments (1)		--		1,119.0
Total	$	60.8	$	1,180.6

(1) On January 18, 2012, we discontinued using the equity method to account for our investment in Energy Transfer Equity common units and began accounting for them as available-for-sale equity securities. As a result, we no longer have any excess cost amounts associated with this investment.

The following table presents our amortization of excess cost amounts by business segment for the periods presented:

	For the Three Months
	Ended March 31,
	2012		2011
NGL Pipelines & Services	$	0.2	$	0.3
Onshore Crude Oil Pipelines & Services		0.2		0.2
Offshore Pipelines & Services		0.3		0.3
Petrochemical & Refined Products Services		0.1		--
Other Investments (1)		0.3		9.1
Total	$	1.1	$	9.9

(1) Reflects amortization of excess cost amounts related to our investment in Energy Transfer Equity through January 18, 2012. We ceased using the equity method to account for this investment on January 18, 2012.

In April 2012, we, along with Anadarko Petroleum Corporation and DCP Midstream, LLC formed a new joint venture, Front Range Pipeline LLC ("Front Range"), to design and construct a new NGL pipeline that will originate in the Denver-Julesburg Basin (the "DJ Basin") in Weld County, Colorado and extend approximately 435 miles to Skellytown in Carson County, Texas. Each party holds a one-third ownership interest in the joint venture. The Front Range Pipeline, with connections to our Mid-America Pipeline System and the Texas Express Pipeline, is expected to provide producers in the DJ Basin with access to the Gulf Coast, the largest NGL market in the U.S. Depending on shipper interest in a binding open commitment period that commenced in April 2012, initial capacity on the Front Range Pipeline is expected to be approximately 150 MBPD, which can be readily expanded to approximately 230 MBPD. We will construct and operate the pipeline, which is expected to begin service in the fourth quarter of 2013.

Summarized Income Statement Information of Unconsolidated Affiliates

The following table presents unaudited income statement information (on a 100% basis) of our unconsolidated affiliates, aggregated by the business segments to which they relate, for the periods presented:

	Summarized Income Statement Information for the Three Months Ended
	March 31, 2012								March 31, 2011
			Operating			Net					Operating			Net
	Revenues		Income (Loss)			Income (Loss)			Revenues		Income (Loss)			Income (Loss)
NGL Pipelines & Services	$	110.9	$	27.0		$	27.0		$	100.1	$	23.4		$	23.4
Onshore Natural Gas Pipelines & Services		30.9		2.6			2.6			35.5		2.6			2.6
Onshore Crude Oil Pipelines & Services		12.3		0.8			0.8			11.2		0.5			0.5
Offshore Pipelines & Services		41.1		19.1			18.4			46.3		18.9			18.7
Petrochemical & Refined Products Services		5.4		(9.4	)		(11.4	)		10.1		(7.0	)		(9.2	)
Other Investments (1)		--		--			--			1,989.1		364.2			88.6
(1) On January 18, 2012, we discontinued using the equity method to account for our investment in Energy Transfer Equity common units. As such, income statement data for Energy Transfer Equity is not presented for the three months ended March 31, 2012. For the three months ended March 31, 2011, net income for Energy Transfer Equity represents net income attributable to their partners.

The credit agreements of Poseidon and Centennial restrict their ability to pay cash dividends if a default or event of default (as defined in each credit agreement) has occurred and is continuing at the time such payments are scheduled to be paid. These businesses were in compliance with the terms of their credit agreements at March 31, 2012.