Related Party Transactions

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS:

The following tables provide a summary of related party transactions for the periods presented:

	Successor		Predecessor
Related Party Transactions	Three months ended September 30, 2012		Three months ended September 30, 2011
Transportation and storage of natural gas (1)	$	2,293	$	661
Operation and maintenance:
Management and royalty fees	—		4,818
Other expenses (2)	6,621		8,317
Other income, net:
Interest income - Southern Union	578		408
Interest income - CrossCountry Citrus	—		1,762
Other	63		32

	Successor		Predecessor
Related Party Transactions	Period from Acquisition (March 26, 2012) to September 30, 2012		Period from January 1, 2012 to March 25, 2012		Nine months ended September 30, 2011
Transportation and storage of natural gas (1)	$	4,460	$	938	$	2,332
Operation and maintenance:
Management and royalty fees	4,969		4,843		14,616
Other expenses (2)	51,506		8,994		25,286
Other income, net:
Interest income - Southern Union	1,151		612		1,179
Interest income - CrossCountry Citrus	—		1,592		5,304
Other	135		68		162

⁽¹⁾  Represents transportation and storage revenues with Missouri Gas Energy, a Southern Union division andETC, a subsidiary of ETP (in the post-acquisition period).

⁽²⁾  Primarily includes allocations of corporate charges for Merger-related employee expenses from Southern Union, partially offset for expenses attributable to services provided by Panhandle on behalf of other affiliate companies.

Pursuant to a demand note with Southern Union Company under a cash management program, the Company loans excess cash, net of repayments, to Southern Union.  The Company is credited with interest on the note at a one month LIBOR rate.  Given the uncertainties regarding the timing of the Company’s cash flows, including financings, capital expenditures and operating cash flows, the Company has reported the note receivable as a non-current asset.  The Company has access to the funds via the demand note and expects repayment to ultimately occur to primarily fund capital expenditures or debt retirements.

The interest rate under the note receivable with CrossCountry Citrus was based on the variable interest rate under the term loan facility due in 2012 plus a credit spread over LIBOR of 112.5 basis points.  The note receivable was repaid on March 26, 2012.

The following table provides a summary of the related party balances included in the condensed consolidated balance sheets at the dates indicated:

	Successor		Predecessor
	September 30, 2012		December 31, 2011
Notes receivable — related parties:
Current — CrossCountry Citrus	$	—	$	342,386
Noncurrent — Southern Union	772,580		688,330
Accounts receivable — related parties (1)	$	5,076	$	6,319
Accounts payable — related parties:
Southern Union — income taxes (2)	$	3,585	$	33,148
Southern Union — other (3)	24,787		18,729
Other (4)	169		178
	$	28,541	$	52,055

⁽¹⁾  Primarily related to services provided for Citrus, MGE and other affiliates. The December 31, 2011 balance also includes interest income associated with the Note receivable – CrossCountry Citrus.

⁽²⁾  Related to income taxes payable to Southern Union per the tax sharing agreement to provide for taxes to be remitted upon the filing of the tax return.

⁽³⁾  Primarily related to payroll funding including Merger-related expenses, provided by Southern Union.  The December 31, 2011 amount is net of insurance proceeds of $2.2 million owed by Southern Union to the Company.

⁽⁴⁾  Primarily related to various administrative and operating costs paid by other affiliate companies on behalf of the Company.