Equity Investments

3 Months Ended

Mar. 31, 2013

Equity Investments [Abstract]

Equity Investments

Note 6 — Equity Investments

As of March 31, 2013, we had two investments that we account for using the equity method of accounting: Deepwater Gateway and Independence Hub, both of which are included in our Production Facilities segment. 

Deepwater Gateway, L.L.C.  In June 2002, we, along with Enterprise Products Partners L.P. (”Enterprise”), formed Deepwater Gateway, each with a 50% interest, to design, construct, install, own and operate a tension leg platform production hub primarily for Anadarko Petroleum Corporation's Marco Polofield in the Deepwater Gulf of Mexico.  Our investment in Deepwater Gateway totaled $90.2 million and $91.4 million as of March 31, 2013 and December 31, 2012, respectively (including capitalized interest of $1.3 million and $1.3 million at March 31, 2013 and December 31, 2012, respectively).

Independence Hub, LLC.  In December 2004, we acquired a 20% interest in Independence Hub, an affiliate of Enterprise.  Independence Hub owns the "Independence Hub" platform located in Mississippi Canyon Block 920 in a water depth of 8,000 feet.Our investment in Independence Hub was $75.3 million and $76.2 million as of March 31, 2013 and December 31, 2012, respectively (including capitalized interest of $4.5 million and $4.6 million at March 31, 2013 and December 31, 2012, respectively).

We received the following distributions from our equity investments (in thousands):

		Three Months Ended
		March 31,
		2013		2012
Deepwater Gateway	$	1,500	$	2,150
Independence Hub		1,160		4,200
Total	$	2,660	$	6,350

As disclosed in our 2012 Form 10-K, in the first quarter of 2012, we recorded losses totaling $3.8 million associated with our investment in an Australian joint venture, including a $3.0 million fee paid in connection with our exit from the joint venture.  In April 2012, we paid this fee and received approximately $3.7 million of proceeds for our pro rata portion (50%) of the value of certain of the net assets on hand at the time of our exit.  We are no longer a participant in this joint venture.

The summarized aggregated financial information related to the subsidiaries we record using the equity method is as follows (in thousands):

		Three Months Ended
		March 31,
		2013		2012
Revenues	$	9,025	$	23,018
Operating income		3,296		17,379
Net income		3,296		17,379

		March 31,		December 31,
		2013		2012
Current assets	$	16,776	$	16,682
Total assets		531,749		537,251
Current liabilities		635		706
Total liabilities		5,322		5,320