Related Party Transactions

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Related Party Transactions

4. Related Party Transactions

The following table provides a summary of related party transactions for the periods presented.

		Successor		Predecessor
Related Party Transactions		Period from Acquisition (March 26, 2012) to March 31, 2012		Period from January 1, 2012 to March 25, 2012		Three months ended March 31, 2011
		(In thousands)			(In thousands)
Transportation and storage
	of natural gas (1)	$	65	$	938	$	1,008
Operation and maintenance:
	Management and royalty fees		337		4,843		5,055
	Other expenses (2)		38,915		8,994		8,343
Other income, net:
	Interest income - Southern Union		8		612		387
	Interest income - CrossCountry Citrus		-		1,592		1,782
	Other		4		68		66

___________________________

• Represents transportation and storage revenues with Missouri Gas Energy, a Southern Union division.
• Primarily includes allocations of corporate charges for Merger-related employee expenses from Southern Union, partially offset for expenses attributable to services provided by Panhandle on behalf of other affiliate companies.

Pursuant to a demand note with Southern Union Company under a cash management program, the Company loans excess cash, net of repayments, to Southern Union. The Company is credited with interest on the note at a one month LIBOR rate. Given the uncertainties regarding the timing of the Company's cash flows, including financings, capital expenditures and operating cash flows, the Company has reported the note receivable as a non-current asset. The Company has access to the funds via the demand note and expects repayment to ultimately occur to primarily fund capital expenditures or debt retirements.

The interest rate under the note receivable with CrossCountry Citrus was based on the variable interest rate under the term loan facility due in 2012 plus a credit spread over LIBOR of 112.5 basis points.The note receivable was repaid on March 26, 2012.

The counterparty to the notes receivable is the parent of the Company, Southern Union, whose debt is rated BBB- by Fitch Ratings, Baa3 by Moody's Investor Services, Inc. and BBB- by Standard & Poor's.

The following table provides a summary of the related party balances included in the Condensed Consolidated Balance Sheets at the dates indicated.

		Successor		Predecessor
		March 31, 2012		December 31, 2011
		(In thousands)		(In thousands)
Notes receivable - related parties
	Current:
	CrossCountry Citrus	$	-	$	342,386
	Noncurrent:
	Southern Union		775,730		688,330
Accounts receivable - related parties (1)		$	34,974	$	6,319
Accounts payable - related parties:
	Southern Union - income taxes (2)	$	30,614	$	33,148
	Southern Union - other (3)		138,120		18,729
	Other (4)		174		178
		$	168,908	$	52,055

______________________________

• Primarily related to amounts due from Southern Union for value received, interest income associated with the Note receivable – CrossCountry Citrus, and services provided for Citrus.
• Related to income taxes payable to Southern Union per the tax sharing agreement to provide for taxes to be remitted upon the filing of the tax return.
• Primarily related to payroll funding including Merger-related expenses, provided by Southern Union. The March 31, 2012 and December 31, 2011 amountsare net of insurance proceeds ofnil and$2.2 million, respectively, owed by Southern Union to the Company.
• Primarily related to various administrative and operating costs paid by other affiliate companies on behalf of the Company.