Enterprise Products Partners L.P.

SEC Filings

8-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 8-K on 11/02/2017
Entire Document
 

Review of Segment Performance for Third Quarter 2017

NGL Pipelines & Services – Gross operating margin for the NGL Pipelines & Services segment increased 10 percent, or $67 million, to $771 million for the third quarter of 2017 from $704 million for the third quarter of 2016.  We estimate that the effects of Hurricane Harvey reduced gross operating margin in this segment by approximately $7 million for the third quarter of 2017 primarily from reduced transportation volumes and lost business opportunities.

Enterprise’s natural gas processing and related natural gas liquids (“NGL”) marketing business generated gross operating margin of $203 million for the third quarters of both 2017 and 2016.  Total fee-based processing volumes were 4.8 billion cubic feet per day (“Bcf/d”)  for the third quarter of 2017 compared to 4.6 Bcf/d for the third quarter of 2016, and total equity NGL production increased to 166 thousand barrels per day (“MBPD”) this quarter from 116 MBPD for the third quarter of 2016.

Enterprise’s natural gas processing business reported a $10 million increase in gross operating margin for the third quarter of 2017 compared to the same quarter in 2016.  In general, gross operating margin for the natural gas processing business for the third quarter of 2017 benefited from higher processing margins, equity NGL production and fee-based volumes, which were partially offset by a $23 million decrease from hedging activities.  The decrease in gross operating margin from hedging activities was comprised of approximately $13 million of hedging losses in the third quarter of 2017 compared to $10 million of hedging gains in the third quarter of 2016.  The processing business incurred approximately $7 million of costs in the third quarter of 2016 related to a fire at our Pascagoula processing plant in Mississippi.  The Pascagoula facility returned to commercial service in December 2016.

Gross operating margin from the partnership’s NGL marketing business for the third quarter of 2017 decreased $10 million compared to the third quarter of 2016, primarily due to lower contributions from marketing activities associated with our storage assets.

Gross operating margin from the partnership’s NGL pipelines and storage business increased $57 million, or 15 percent, to $435 million for the third quarter of 2017 compared to the third quarter of 2016.  NGL transportation volumes increased 7 percent to 3.1 million barrels per day (“BPD”) for the third quarter of 2017 versus the same quarter of 2016.   NGL marine terminal volumes increased 22 percent to 456 MBPD for the third quarter of 2017 compared to the third quarter of last year.

Gross operating margin from Enterprise’s NGL marine terminals and related Houston Ship Channel Pipeline for the third quarter of 2017 increased by a total of $16 million compared to the third quarter of 2016.  The Morgan’s Point ethane export terminal loaded 100 MBPD of cargoes in the third quarter of 2017 and accounted for $14 million of the increase in gross operating margin.

Enterprise’s ATEX ethane pipeline reported a $15 million increase in gross operating margin for the third quarter of 2017 compared to the third quarter of 2016 primarily from higher volumes.  ATEX volumes increased by 26 MBPD for the third quarter of 2017 versus the same quarter in 2016.  The Mont Belvieu NGL and related product storage business accounted for $10 million of the increase in gross operating margin this quarter, primarily due to higher fees.

Enterprise’s Tri-States, Wilprise, Chaparral and affiliated pipelines reported an aggregate $16 million increase in gross operating margin for the third quarter of 2017 compared to the third quarter of last year, primarily attributable to a 67 MBPD increase in volumes.

The partnership’s equity investments in the Texas Express and Front Range pipelines posted a combined $6 million increase in gross operating margin for the third quarter of 2017 when compared to the third quarter of last year, primarily due to contractual increases in committed volumes.

Gross operating margin from the partnership’s NGL fractionation business increased $10 million to $132 million for the third quarter of 2017 compared to the third quarter of 2016.  Enterprise benefited from higher fractionation volumes at its Mont Belvieu, Hobbs and Louisiana plants this quarter, as well as increased revenues from blending
 
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