Investments in Unconsolidated Affiliates

3 Months Ended

Mar. 31, 2012

Equity Method Investment, Summarized Financial Information [Abstract]

Investments in Unconsolidated Affiliates

INVESTMENTS IN UNCONSOLIDATED AFFILIATES

Our investments in unconsolidated affiliates consisted of the following:



	March 31,		December 31,
(in thousands)	2012		2011
Medusa Spar LLC	$	46,507	$	49,480
Other	132		127
	$	46,639	$	49,607

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 $47 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. The following are condensed 100% statements of operations of Medusa Spar LLC. Our 50% share of the underlying equity of the net assets of Medusa Spar LLC is approximately equal to its carrying value.



	Three Months Ended March 31,
(in thousands)	2012			2011
Medusa Spar LLC
Condensed Statements of Operations
Revenue	$	4,023		$	3,354
Depreciation	(2,369		)	(2,369		)
General and Administrative	(19		)	(18		)
Net Income	$	1,635		$	967

- 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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