Equity Method Investments

12 Months Ended

Dec. 31, 2011

Equity Method Investments [Abstract]

Equity Method Investments

Note 8.  Equity Method Investments

Investments accounted for under the equity method consist primarily of the following:

· 45% interest in Atlantic Methanol Production Company, LLC (AMPCO), which owns and operates a methanol plant and related facilities in Equatorial Guinea;

· 28% interest in Alba Plant LLC (Alba Plant), which owns and operates a liquefied petroleum gas processing plant in Equatorial Guinea; and

· 50% interest in CONE Gathering LLC (CONE), which owns and operates natural gas gathering facilities servicing our joint venture properties in the Marcellus Shale.

Equity method investments are included in other noncurrent assets in the consolidated balance sheets, and our share of earnings is reported as income from equity method investees in the consolidated statements of operations. Our share of income taxes incurred directly by the equity method investees is reported in income from equity method investees and is not included in our income tax provision in our consolidated statements of operations. At December 31, 2011, our retained earnings included $106 million related to the undistributed earnings of equity method investees.

The carrying value of our AMPCO investment was $14 million higher than the underlying net assets of the investee at December 31, 2011.  The difference includes $10 million relating to capitalized interest which is being amortized into earnings over the remaining useful life of the plant.  The remaining $4 million relates to a note receivable from our funding a portion of the local government's share of the plant's development.  The note receivable is being recovered through distributions from AMPCO.

Equity method investments are as follows:

	December 31,
	2011		2010
(millions)
Equity Method Investments
AMPCO	$	147	$	166
Alba Plant		96		107
CONE		72		-
Other		14		12
Total Equity Method Investments	$	329	$	285

Summarized, 100% combined financial information for equity method investees is as follows:

	December 31,
	2011		2010
(millions)
Balance Sheet Information
Current Assets	$	374	$	307
Noncurrent Assets		827		735
Current Liabilities		360		265
Noncurrent Liabilities		16		16

	Year Ended December 31,
	2011			2010			2009
(millions)
Statements of Operations Information
Operating Revenues	$	1,139		$	809		$	632
Operating Expenses		335			296			264
Operating Income		804			513			368
Other (Income) Net		(12	)		(12	)		(13	)
Income Before Income Taxes		816			525			381
Income Tax Provision		201			133			95
Net Income	$	615		$	392		$	286