Equity Investments

9 Months Ended

Sep. 30, 2013

Equity Investments [Abstract]

Equity Investments

Note 6 — Equity Investments

As of September 30, 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 $87.5 million and $91.4 million as of September 30, 2013 and December 31, 2012, respectively (including capitalizedinterest of $1.3 million at September 30, 2013 and December 31, 2012).

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 $73.7 million and $76.2 million as of September 30, 2013 and December 31, 2012, respectively (including capitalized interest of $4.3 million and $4.6 million at September 30, 2013 and December 31, 2012, respectively).

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

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
Deepwater Gateway	$	1,600	$	3,407	$	5,100	$	6,807
Independence Hub		800		2,113		3,160		6,913
Total	$	2,400	$	5,520	$	8,260	$	13,720