Equity Method Investments

6 Months Ended

Jun. 30, 2011

Equity Method Investments

Equity Method Investments

Note 7—Equity Method Investments

WesPac Energy LLC

On July 1, 2010, the Company acquired a 50% membership interest in WesPac Energy LLC, a Nevada limited liability company (“WesPac”). Pursuant to the terms of the Membership Interest Purchase Agreement, dated July 1, 2010, by and among the Company, WesPac and Kealine Holdings, LLC (“Kealine”), a Nevada limited liability company and the sole limited liability company member of WesPac prior to the closing, we acquired 50% of the issued and outstanding limited liability company membership interests of WesPac for total cash consideration of $18,065. Kealine holds the remaining 50% membership interest in WesPac.  We have no future obligation to make any additional investments into WesPac. All key investment, management and operating decisions of WesPac will require unanimous approval from a management committee equally represented by Kealine and us.

Founded in 1998 and based in Irvine, California, WesPac develops pipeline and terminal projects in the United States, Canada and Mexico, by building, expanding or enhancing infrastructure in the areas of pipeline transportation and storage efficiency enhancement. To date, WesPac has successfully developed, financed and brought to completion several such projects.  The Company believes the ownership interest in WesPac will broaden our exposure to a variety of pipeline, terminal and energy-related infrastructure opportunities across North America.

The following is a summary of the financial position and results as of and for the periods ended:

	June 30, 2011		December 31, 2010
Wespac Energy, LLC
Balance sheet data
Assets	$	28,892	$	30,161
Liabilities	2,986		4,248
Net assets	$	25,906	$	25,913
Company’s equity investment in venture	$	17,846	$	17,915

	Three months ended June 30,					Six months ended June 30,
	2011			2010		2011			2010
Earnings data:
Revenue	$	—		$	—	$	—		$	—
Expenses	$	11		$	—	$	138		$	—
Earnings before taxes	$	(11	)	$	—	$	(138	)	$	—
Company’s equity in earnings	$	(6	)	$	—	$	(69	)	$	—

St.—Bernard Levee Partners

The Company purchased a 30% interest in St. — Bernard Levee Partners (“Bernard”) in the fourth quarter 2009 for $300 and accounts for this investment under the equity method. Bernard engages in construction activities in Louisiana.  Bernard distributed $5,880 and $3,177 to the Company during the six months ended June 30, 2011 and 2010, respectively, as calculated under the joint venture agreement.  The following is a summary of the financial position and results as of and for the periods ended:

	June 30, 2011		December 31, 2010
St. — Bernard Levee Partners
Balance sheet data
Assets	$	23,270	$	21,981
Liabilities	19,195		17,291
Net assets	$	4,075	$	4,690
Company’s equity investment in venture	$	188	$	878

	Three months ended June 30,				Six months ended June 30,
	2011		2010		2011		2010
Earnings data:
Revenue	$	27,674	$	65,892	$	55,710	$	108,022
Expenses	$	8,757	$	58,330	$	33,433	$	95,605
Earnings before taxes	$	18,917	$	7,562	$	22,277	$	12,417
Company’s equity in earnings	$	4,406	$	1,836	$	5,189	$	3,005

Otay Mesa Power Partners

During 2007, the Company established a joint venture, Otay Mesa Power Partners, for the sole purpose of constructing a power plant near San Diego, California.  The project was completed in 2010, and a distribution of $106 was received in March 2011.