Equity Method Investments

12 Months Ended

Dec. 31, 2012

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Equity Method Investments

Investments accounted for under the equity method consist primarily of the following:

• 45% interest in Atlantic Methanol Production Company, LLC (AMPCO), which owns and operates a methanol plant and related facilities in Equatorial Guinea;

• 28% interest in Alba Plant LLC (Alba Plant), which owns and operates a liquefied petroleum gas processing plant in Equatorial Guinea; and

• 50% interest in CONE Gathering LLC (CONE), which owns and operates natural gas gathering facilities servicing our joint venture properties in the Marcellus Shale.

Equity method investments are included in other noncurrent assets in the consolidated balance sheets, and our share of earnings is reported as income from equity method investees in the consolidated statements of operations. Our share of income taxes incurred directly by the equity method investees is reported in income from equity method investees and is not included in our income tax provision in our consolidated statements of operations. At December 31, 2012, our retained earnings included $111 million related to the undistributed earnings of equity method investees.

The carrying value of our AMPCO investment was $10 million higher than the underlying net assets of the investee at December 31, 2012.  The difference is related to capitalized interest which is being amortized into earnings over the remaining useful life of the plant.

Equity method investments are as follows:

	December 31,
	2012		2011
(millions)
Equity Method Investments
AMPCO	$	137	$	147
Alba Plant	93		96
CONE	121		72
Other	16		14
Total Equity Method Investments	$	367	$	329

Summarized, 100% combined financial information for equity method investees is as follows:

	December 31,
	2012		2011
(millions)
Balance Sheet Information
Current Assets	$	384	$	374
Noncurrent Assets	902		827
Current Liabilities	348		360
Noncurrent Liabilities	24		16

	Year Ended December 31,
	2012			2011			2010
(millions)
Statements of Operations Information
Operating Revenues	$	1,173		$	1,139		$	809
Operating Expenses	361			335			296
Operating Income	812			804			513
Other (Income) Net	(5		)	(12		)	(12		)
Income Before Income Taxes	817			816			525
Income Tax Provision	200			201			133
Net Income	$	617		$	615		$	392