Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS:

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

	Successor		Predecessor
	December 31, 2012		December 31, 2011
Notes receivable from related party — Southern Union and subsidiaries:
Current	$	—	$	342
Non-current	831		688
	$	831	$	1,030
Accounts receivable from related companies (1)	$	14	$	6
Accounts payable to related companies:
Southern Union — income taxes (2)	$	—	$	33
Southern Union — other (3)	26		19
Other (4)	1		—
	$	27	$	52

(1) Accounts receivable from related companies reflected above primarily related to services provided for ETE, ETP, Citrus, MGE and other affiliates. The December 31, 2011 balance also included interest income associated with a note receivable from an affiliate, which was repaid on March 26, 2012.

(2) Accounts payable from related companies reflected above 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) Accounts payable from related companies reflected above primarily related to payroll funding including merger-related expenses, provided by Southern Union.  The December 31, 2011 amount was net of insurance proceeds of $2 million owed by Southern Union to the Company.

(4) Accounts payable from related companies reflected above primarily related to various administrative and operating costs paid by other affiliate companies on behalf of the Company.

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

	Successor		Predecessor
	Period from Acquisition (March 26, 2012) to December 31, 2012		Period from January 1, 2012 to March 25, 2012		Years Ended December 31,
					2011		2010
Transportation and storage of natural gas (1)	$	7	$	1	$	3	$	3
Operation and maintenance and general-affiliate:
Management and royalty fees	5		5		20		19
Corporate services - Southern Union	47		9		32		31
Other expenses (2)	9		—		6		5
Other income, net:
Interest income — Southern Union and subsidiaries	2		2		9		9

⁽¹⁾  Represents transportation and storage revenues with ETC, a subsidiary of ETP (in the successor period) and MGE, a Southern Union division.

⁽²⁾  Represents primarily insurance costs and corporate charges for merger-related employee expenses from ETE offset by expenses attributable to services provided by Panhandle on behalf of other affiliate companies.

Pursuant to a demand note with Southern Union 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.