Equity Investments

3 Months Ended

Mar. 31, 2014

Note 5 — Equity Investments

As of March 31, 2014, 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 Polo field in the Deepwater Gulf of Mexico. Our investment in Deepwater Gateway totaled $84.5 million and $85.8 million as of March 31, 2014 and December 31, 2013, respectively (including capitalized interest of $1.3 million at March 31, 2014 and December 31, 2013).

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 $71.2 million and $72.1 million as of March 31, 2014 and December 31, 2013, respectively (including capitalized interest of $4.2 million and $4.3 million at March 31, 2014 and December 31, 2013, respectively).

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


		Three Months Ended
		March 31,
		2014		2013

Deepwater Gateway	$	2,000	$	1,500
Independence Hub		800		1,160
Total	$	2,800	$	2,660

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

+ References+ Details