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Equity Method Investments
 12 Months Ended
Dec. 31, 2012
Equity Method Investments  
Equity Method Investments

Note 8—Equity Method Investments

 

WesPac Energy LLC

 

On July 1, 2010, the Company acquired a 50% membership interest in WesPac Energy LLC, a Nevada limited liability company (“WesPac”), from Kealine Holdings, LLC (“Kealine”), a Nevada limited liability company.  Kealine holds the remaining 50% membership interest in WesPac.  We have no future obligation to make any additional investments into WesPac. All key investment, management and operating decisions of WesPac require unanimous approval from a management committee equally represented by Kealine and us.  The Company believes the ownership interest in WesPac will broaden our exposure to a variety of pipeline, terminal and energy-related infrastructure opportunities across North America.

 

The following is a summary of the financial position and results as of and for the period ended December 31:

 

 

 

2012

 

2011

 

WesPac Energy, LLC

 

 

 

 

 

Balance sheet data:

 

 

 

 

 

Assets

 

$

16,896

 

$

20,147

 

Liabilities

 

1,063

 

1,820

 

Net assets

 

$

15,833

 

$

18,327

 

Company’s equity investment in affiliate

 

$

11,463

 

$

12,415

 

Earnings data:

 

 

 

 

 

Revenue

 

$

552

 

$

1,717

 

Expenses

 

2,455

 

9,303

 

Earnings before taxes

 

$

(1,903

)

$

(7,586

)

Company’s equity in earnings

 

$

(952

)

$

(3,793

)

 

In December 2012, WesPac expensed $1,100 for three abandoned projects and the Company recorded its 50% share of the expense.

 

At the end of 2011, a major oil refining third party terminated two potential projects.  WesPac expensed $5,400 in 2011.  In December 2011, the Company recorded its 50% share of expenses required by the equity method of accounting and reduced its $5,000 basis difference by $1,700 to recognize an estimate for an other than temporary decrease in the value of its basis difference between the Company’s original investment and its pro-rata share of the WesPac equity.

 

St. — Bernard Levee Partners

 

The Company acquired a 30% interest in St. — Bernard Levee Partners (“Bernard”) in the fourth quarter 2009 and accounts for this investment under the equity method.  Bernard engages in construction activities in Louisiana. Bernard distributed $4,200 and $36,955 to its equity holders during the twelve months ended December 31, 2012 and 2011, respectively, of which the Company’s share, as calculated under the joint venture agreement, was $1,260 and $10,022 for the same periods in 2012 and 2011, respectively.  The following is a summary of the financial position and results as of and for the years ended December 31:

 

 

 

2012

 

2011

 

St. Bernard Levee Partners

 

 

 

 

 

Balance sheet data:

 

 

 

 

 

Assets

 

$

592

 

$

5,677

 

Liabilities

 

86

 

4,771

 

Net assets

 

$

506

 

$

906

 

Company’s equity investment in affiliate

 

$

150

 

$

272

 

Earnings data:

 

 

 

 

 

Revenue

 

$

4,026

 

$

72,822

 

Expenses

 

227

 

39,650

 

Earnings before taxes

 

$

3,799

 

$

33,172

 

Company’s equity in earnings

 

$

1,138

 

$

9,415

 

 

Alvah, Inc.

 

On November 17, 2012, the Company acquired a 49% membership interest in Alvah, Inc., a California corporation (“Alvah”), as part of the acquisition of Q3 Contracting, Inc.  Alvah is engaged in electrical contracting activities, primarily in Northern California and worked as a subcontractor for ARB prior to and after the acquisition. In December 2012, Alvah distributed $200, of which the Company’s share was $98.  During 2012, payments made to Alvah as a subcontractor by ARB and Q3C amounted to $6,377 and $537, respectively.