XML 59 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
Investments in Unconsolidated Affiliates
9 Months Ended
Sep. 30, 2013
Investments in Unconsolidated Affiliates [Abstract]  
Investments in Unconsolidated Affiliates
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
September 30,
2013
  
September 30,
2013
  
December 31,
2012
 
NGL Pipelines & Services:
 
  
  
 
Venice Energy Service Company, L.L.C.
 
13.1%
 
 
$
28.1
  
$
29.6
 
K/D/S Promix, L.L.C.
 
50%
 
  
44.4
   
46.9
 
Baton Rouge Fractionators LLC
 
32.2%
 
  
19.3
   
20.2
 
Skelly-Belvieu Pipeline Company, L.L.C.
 
50%
 
  
40.5
   
38.2
 
Texas Express Pipeline LLC (1)
 
35%
 
  
328.5
   
144.4
 
Texas Express Gathering LLC (1)
 
45%
 
  
34.6
   
20.9
 
Front Range Pipeline LLC
 
33.3%
 
  
111.8
   
24.4
 
Onshore Natural Gas Pipelines & Services:
          
White River Hub, LLC
 
50%
 
  
24.3
   
24.9
 
Onshore Crude Oil Pipelines & Services:
            
Seaway Crude Pipeline Company LLC
 
50%
 
  
677.2
   
341.4
 
Eagle Ford Pipeline LLC (2)
 
50%
 
  
212.4
   
152.4
 
Offshore Pipelines & Services:
            
Poseidon Oil Pipeline Company, L.L.C. ("Poseidon")
 
36%
 
  
43.4
   
47.3
 
Cameron Highway Oil Pipeline Company
 
50%
 
  
209.9
   
220.0
 
Deepwater Gateway, L.L.C.
 
50%
 
  
86.2
   
90.0
 
Neptune Pipeline Company, L.L.C.
 
25.7%
 
  
43.7
   
46.8
 
Southeast Keathley Canyon Pipeline Company L.L.C.
 
50%
 
  
157.2
   
74.9
 
Petrochemical & Refined Products Services:
           
Baton Rouge Propylene Concentrator, LLC
 
30%
 
  
7.8
   
8.5
 
Centennial Pipeline LLC ("Centennial")
 
50%
 
  
62.3
   
60.8
 
Other (3)
 
Various
   
2.9
   
3.0
 
Total
    
$
2,134.5
  
$
1,394.6
 
 
            
(1)   Planned principal operations commenced in November 2013.
(2)   Planned principal operations commenced in July 2013.
(3)   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.
 

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

 
 
For the Three Months
Ended September 30,
  
For the Nine Months
Ended September 30,
 
 
 
2013
  
2012
  
2013
  
2012
 
NGL Pipelines & Services
 
$
4.1
  
$
3.0
  
$
11.8
  
$
12.0
 
Onshore Natural Gas Pipelines & Services
  
1.0
   
0.9
   
2.9
   
3.5
 
Onshore Crude Oil Pipelines & Services
  
34.3
   
16.5
   
101.0
   
20.6
 
Offshore Pipelines & Services
  
9.8
   
6.8
   
24.9
   
17.8
 
Petrochemical & Refined Products Services
  
(5.2
)
  
(6.2
)
  
(14.5
)
  
(14.1
)
Other Investments
  
--
   
--
   
--
   
2.4
 
Total
 
$
44.0
  
$
21.0
  
$
126.1
  
$
42.2
 

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

 
 
September 30,
2013
  
December 31,
2012
 
NGL Pipelines & Services
 
$
28.0
  
$
28.9
 
Onshore Crude Oil Pipelines & Services
  
18.0
   
18.5
 
Offshore Pipelines & Services
  
12.6
   
13.6
 
Petrochemical & Refined Products Services
  
2.6
   
2.7
 
Total
 
$
61.2
  
$
63.7
 

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

 
 
For the Three Months
Ended September 30,
  
For the Nine Months
Ended September 30,
 
 
 
2013
  
2012
  
2013
  
2012
 
NGL Pipelines & Services
 
$
0.3
  
$
0.2
  
$
0.9
  
$
0.7
 
Onshore Crude Oil Pipelines & Services
  
0.1
   
0.2
   
0.5
   
0.5
 
Offshore Pipelines & Services
  
0.3
   
0.3
   
1.0
   
0.9
 
Petrochemical & Refined Products Services
  
0.1
   
--
   
0.1
   
0.1
 
Other Investments
  
--
   
--
   
--
   
0.3
 
Total
 
$
0.8
  
$
0.7
  
$
2.5
  
$
2.5
 

Liquidation of Investment in Energy Transfer Equity

The Other Investments segment included our noncontrolling ownership interest in Energy Transfer Equity, which was accounted for using the equity method until January 18, 2012.

At December 31, 2011, we owned 29,303,514 common units of Energy Transfer Equity representing 13.1% of its limited partner interests.  On January 18, 2012, we sold 22,762,636 of these common units in a private transaction, which generated cash proceeds of $825.1 million and a gain on the sale of $27.5 million.  As a result of the January 18, 2012 transaction, our ownership interest in Energy Transfer Equity was reduced below 3%, and we discontinued using the equity method to account for this investment and began accounting for it as an investment in available-for-sale equity securities.  Following the January 18, 2012 transaction, we sold the remaining 6,540,878 Energy Transfer Equity common units through April 27, 2012, which generated cash proceeds of $270.2 million and gains on these sales totaling $41.3 million.  The $68.8 million of aggregate gains on the 2012 sales are a component of "Other income" on our Unaudited Condensed Statements of Consolidated Operations.

All activities included in our former sixth reportable business segment, Other Investments, ceased on January 18, 2012, which was the date we discontinued using the equity method to account for our investment in Energy Transfer Equity.  See Note 11 for additional information regarding our business segments.
 
Other

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 September 30, 2013.