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Equity-Method Investments
9 Months Ended
Sep. 30, 2011
Equity Method Investments [Abstract] 
Equity-Method Investments
(7) Equity-Method Investments
Investments in entities that are not controlled by the Company, but where the Company has the ability to exercise influence over the operations, are accounted for using the equity-method. The Company’s share of the income or losses of these entities is reflected as earnings from equity-method investments on its condensed consolidated statements of operations.
In March 2011, the Company contributed all of its equity interests in SPN Resources and DBH to DOH, the majority owner of both SPN Resources and DBH, in exchange for a 10% limited partnership interest in DOH. Following these contributions, DOH owns all the equity interests of SPN Resources and DBH. Prior to these contributions, the Company accounted for its equity interests in SPN Resources and DBH as separate equity-method investments. The Company’s equity interest in DOH is accounted for as an equity-method investment with a balance of approximately $69.7 million at September 30, 2011. The Company recorded income from its equity-method investment in DOH of approximately $12.4 million for the seven months ended September 30, 2011 following the contributions. Additionally, the Company received approximately $1.2 million of cash distributions from its equity-method investment in DOH for the seven month period ended September 30, 2011. The Company, where possible and at competitive rates, provides its products and services to assist DOH in producing and developing its oil and gas properties. The Company had a receivable from DOH of approximately $11.4 million at September 30, 2011. The Company also recorded revenue from DOH of approximately $31.4 million for the seven months ended September 30, 2011 following the contributions. Additionally, the Company has a receivable from DOR of approximately $5.3 million as of September 30, 2011 related to its share of oil and natural gas commodity sales and production handling arrangement fees.
The Company’s equity-method investment balance in SPN Resources was approximately $43.6 million at December 31, 2010. The Company recorded earnings from its equity-method investment in SPN Resources of approximately $0.2 million for the two months ended February 28, 2011 prior to the contributions and approximately $3.9 million for the nine months ended September 30, 2010. Additionally, the Company received approximately $8.4 million of cash distributions from its equity-method investment in SPN Resources for the nine month period ended September 30, 2010. The Company, where possible and at competitive rates, provides its products and services to assist SPN Resources in producing and developing its oil and gas properties. The Company had a receivable from SPN Resources of approximately $3.2 million at December 31, 2010. The Company also recorded revenue from SPN Resources of approximately $0.3 million for the two months ended February 28, 2011 and approximately $11.1 million for the nine months ended September 30, 2010.
The Company’s equity-method investment balance in DBH was approximately $13.8 million at December 31, 2010. During the two months ended February 28, 2011 prior to its contributions, the Company recorded earnings from its equity-method investment in DBH of approximately $0.9 million. During the nine months ended September 30, 2010, the Company recorded earnings from its equity-method investment in DBH of approximately $5.1 million. The Company, where possible and at competitive rates, provides its products and services to assist DBH in producing and developing its oil and gas properties. The Company had a receivable from DBH of approximately $1.4 million at December 31, 2010. The Company also recorded revenue from DBH of approximately $0.9 million for the two months ended February 28, 2011 and approximately $2.5 million for the nine months ended September 30, 2010.