Investment In BBEP

9 Months Ended

Sep. 30, 2011

4. INVESTMENT IN BBEP

At September 30, 2011, we owned 8.0 million BBEP Units, or 13.6% of BBEP, whose price closed at $17.40 per unit as of that date. Our ownership interest in BBEP was reduced in February 2011 when BBEP issued approximately 4.9 million BBEP Units. During the nine months ended September 30, 2011, we continued to reduce our ownership through the sale of approximately 7.7 million BBEP Units at a weighted average unit sales price of $18.99. We recognized gains of $133.2 million as other income for the difference between our weighted average carrying value of $1.63 per BBEP Unit and the net sales proceeds.

Changes in the balance of our investment in BBEP for the nine months ended September 30, 2011 were as follows:


(In thousands)

Balance at December 31, 2010	$	83,341
Equity loss in BBEP		(32,721	)
Distributions from BBEP		(16,344	)
BBEP Units sold		(12,551	)

Ending investment balance	$	21,725

We account for our investment in BBEP Units using the equity method, utilizing a one-quarter lag from BBEP's publicly available information. Summarized estimated financial information for BBEP is as follows:


	For the Three Months Ended				For the Nine Months Ended
	June 30,				June 30,
	2011		2010		2011			2010
	(In thousands)				(In thousands)
Revenue ⁽¹⁾	$	142,368	$	134,216	$	147,829		$	305,645
Operating expense		72,929		73,621		226,349			216,170

Operating income (loss)		69,439		60,595		(78,520	)		89,475
Interest and other ⁽²⁾		11,300		6,437		30,363			18,130
Income tax expense (benefit)		616		561		(825	)		(469	)
Noncontrolling interests		68		28		137			118

Net income (loss) available to BBEP	$	57,455	$	53,569	$	(108,195	)	$	71,696

	⁽¹⁾		For the three months ended June 30, 2011 and 2010, unrealized gains of $48.2 million and $33.2 million on commodity derivatives were recognized, respectively. For the nine months ended June 30, 2011 and 2010, unrealized losses of $146.7 million and unrealized gains of $18.4 million on commodity derivatives were recognized, respectively.

	⁽²⁾		The three months ended June 30, 2011 and 2010 included unrealized losses of $2.1 million and unrealized gains of $1.5 million, respectively, from interest rate swaps. The nine months ended June 30, 2011 and 2010 included unrealized gains of $2.4 million and $3.9 million, respectively, from interest rate swaps.


	As of		As of
	June 30, 2011		December 31, 2010
	(In thousands)
Current assets	$	120,781	$	130,017
Property, plant and equipment		1,712,096		1,722,295
Other assets		46,255		77,855
Current liabilities		103,103		101,317
Long-term debt		427,364		528,116
Other non-current liabilities		116,600		91,477
Total equity		1,232,065		1,209,257

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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