Investments in Unconsolidated Affiliates

12 Months Ended

Dec. 31, 2011

Equity Method Investment, Summarized Financial Information [Abstract]

Investments in Unconsolidated Affiliates

INVESTMENTS IN UNCONSOLIDATED AFFILIATES

Our investments in unconsolidated affiliates consisted of the following:

	December 31,
(in thousands)	2011		2010		2009
Medusa Spar LLC	$	49,480	$	51,820	$	57,388
Other	127		—		1,348
	$	49,607	$	51,820	$	58,736

In 2003, we purchased a 50% equity interest in Medusa Spar LLC for $43.7 million. Medusa Spar LLC owns a 75% interest in a production spar platform in the U.S. Gulf of Mexico. Medusa Spar LLC's revenue is derived from processing oil and gas production for a fee based on the volumes processed through the platform (throughput). Medusa Spar LLC financed its acquisition of its 75% interest in the production spar platform using approximately 50% debt and 50% equity from its equity holders. The debt was repaid in 2008. We believe our maximum exposure to loss from our investment in Medusa Spar LLC is our $49.5 million investment. Medusa Spar LLC is a variable interest entity. We are not the primary beneficiary of Medusa Spar LLC, since we do not own a controlling interest, nor do we manage the operations of the asset it owns. As we are not the primary beneficiary, we are accounting for our investment in Medusa Spar LLC under the equity method of accounting. Summarized 100% financial information relative to Medusa Spar LLC follows.

	December 31,
(in thousands)	2011			2010			2009
Medusa Spar LLC
Condensed Balance Sheets
ASSETS
Cash and cash equivalents	$	2,904		$	217		$	949
Other current assets	5,302			3,189			4,116
Property and Equipment, net	91,073			100,551			110,028
Total Assets	$	99,279		$	103,957		$	115,093
LIABILITIES AND MEMBERS’ EQUITY
Current Liabilities	$	18		$	18		$	17
Members’ Equity	99,261			103,939			115,076
Total Liabilities and Members’ Equity	$	99,279		$	103,957		$	115,093
Condensed Statements of Operations
Revenue	$	17,536		$	13,816		$	16,143
Depreciation	(9,478		)	(9,478		)	(9,478		)
General and Administrative	(72		)	(71		)	(70		)
Net Income	$	7,986		$	4,267		$	6,595

Our 50% share of the underlying equity of the net assets of Medusa Spar LLC is approximately equal to its carrying value. Our 50% share of the cumulative undistributed earnings of Medusa Spar LLC was $7.8 million and $10.2 million at December 31, 2011 and 2010, respectively. We received cash distributions of $6.3 million, $7.7 million and $8.5 million from Medusa Spar LLC in 2011, 2010 and 2009, respectively.