Business Combination

12 Months Ended

Dec. 31, 2011

Subsequent Event [Abstract]

Business Combination [Text Block]

Business Combination

On September 23, 2011, Enogex entered into the following agreements: an agreement with Cordillera, Oxbow and West Canadian Midstream LLC pursuant to which Enogex agreed to acquire100 percentof the membership interest in Roger Mills Gas Gathering, LLC, an Oklahoma limited liability company that owns an approximately 60-mile natural gas gathering system located in Roger Mills County and Ellis County, Oklahoma; an agreement with Cordillera and Oxbow pursuant to which Enogex agreed to acquire an approximately 30-mile natural gas gathering system located in Roger Mills County, Oklahoma; and agreements with Cordillera and other producers pursuant to which such producers agreed to provide Enogex with long-term acreage dedication in the area served by the gathering systems encompassing approximately100,000net acres. The gathering systems are located in the Granite Wash area. The aggregate purchase price for these transactions was$200.4 millionwhich was paid in cash primarily from contributions from OGE Energy and the ArcLight group (as discussed in Note 4) as well as cash generated from operations and bank borrowings. The transactions closed on November 1, 2011.

The acquisition described above was accounted for as a business combination. The purchase price shown below is preliminary and has been allocated to the identifiable assets acquired and liabilities assumed based on the estimated fair values at the acquisition date using a third-party valuation expert. Any amount not allocated to identifiable assets and liabilities was allocated to goodwill. These allocations may change in subsequent financial statements. Enogex is currently evaluating the preliminary purchase price allocation, which will be adjusted as additional information relative to the fair value of assets and liabilities becomes available. Enogex expects the purchase price allocations to be completed by the end of the first quarter of 2012. The following table summarizes the preliminary purchase price allocation for this acquisition.

(In millions)
Current assets	$	5.4
Net property, plant and equipment	24.3
Intangible assets	136.3
Goodwill	39.4
Current liabilities assumed	(5.0		)
Total	$	200.4

The goodwill recognized from this acquisition primarily related to the benefits associated with combining the acquired assets with Enogex's existing assets and operations. Enogex believes that the transactions will provide Enogex with key new opportunities in the Granite Wash area. All of the goodwill is deductible for tax purposes. The goodwill has been recorded in the Gathering and Processing segment. At December 31, 2011, there were no changes in the recognized amount of goodwill resulting from this acquisition.

Intangible assets consist of an identifiable customer contracts and relationships. The acquired intangible assets will be amortized on a straight-line basis over the estimated remaining useful life of 15 years. The net amount of intangible assets and related accumulated amortization was $134.8 million and $1.5 million, respectively, at December 31, 2011.