Equity Method Investments

3 Months Ended

Mar. 31, 2013

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”), with Kealine Holdings, LLC (“Kealine”), a Nevada limited liability company.  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 require unanimous approval from a management committee equally represented by Kealine and us.  The Company believes the ownership interest in WesPac broadens 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:

	March 31, 2013		December 31, 2012
Balance sheet data
Assets	$	16,397	$	16,896
Liabilities	756		1,063
Net assets	$	15,641	$	15,833
Company’s equity investment in venture	$	11,367	$	11,463

	Three months ended March 31,
	2013			2012
Earnings data:
Revenue	$	39		$	400
Expenses	$	231		$	216
Earnings before taxes	$	(192	)	$	184
Company’s equity in earnings	$	(96	)	$	92

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 $0 and $4,200 to its equity holders during the three months ended March 31, 2013 and 2012, respectively, of which, the Company’s share, as calculated under the joint venture agreement, was $0 and $1,260 for the same periods in 2013 and 2012, respectively. There was no activity in the three month period ended March 31, 2013.  The following is a summary of the financial position and results as of and for the periods ended:

	March 31, 2013		December 31, 2012
Balance sheet data
Assets	$	592	$	592
Liabilities	86		86
Net assets	$	506	$	506
Company’s equity investment in venture	$	150	$	150

	Three months ended March 31,
	2013		2012
Earnings data:
Revenue	$	—	$	3,435
Expenses	$	—	$	72
Earnings before taxes	$	—	$	3,363
Company’s equity in earnings	$	—	$	1,009

Alvah, Inc.

On November 17, 2012, the Company acquired a 49% membership interest in Alvah, Inc., a California corporation (“Alvah”), as part of the acquisition of Q3C.  Alvah is engaged in electrical contracting activities, primarily in Northern California and worked as a subcontractor for ARB prior to and after the acquisition. In December 2012, Alvah distributed $200, of which the Company’s share was $98.  During the three months ending March 31, 2013, payments made to Alvah as a subcontractor by ARB and Q3C were $1,486 and $1,245, respectively.  For the same period in the prior year, payments were $212 and $118, respectively. The following is a summary of the financial position and results as of and for the period ended:

	March 31, 2013		December 31, 2012
Balance sheet data
Assets	$	2,880	$	2,177
Liabilities	1,166		1,208
Net assets	$	1,714	$	969
Company’s equity investment in venture	$	1,565	$	1,200

	Three months ended March 31,
	2013		2012
Earnings data:
Revenue	$	2,716	$	—
Expenses	$	1,971	$	—
Earnings before taxes	$	745	$	—
Company’s equity in earnings	$	365	$	—