Enterprise Products Partners L.P.

SEC Filings

10-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018
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Other Items

Contractual Obligations

The following table summarizes our significant contractual obligations at December 31, 2017 (dollars in millions):

         
Payment or Settlement due by Period
 
         
In less than
   
In 1-3
   
In 4-5
   
More than
 
Contractual Obligations
 
Total
   
1 year
   
years
   
years
   
5 years
 
Scheduled maturities of debt obligations (1)
 
$
24,780.1
   
$
2,855.7
   
$
3,000.0
   
$
1,225.0
   
$
17,699.4
 
Estimated cash payments for interest (2)
 
$
23,942.0
   
$
1,082.9
   
$
1,986.3
   
$
1,796.8
   
$
19,076.0
 
Operating lease obligations (3)
 
$
413.3
   
$
57.0
   
$
100.0
   
$
71.3
   
$
185.0
 
Purchase obligations: (4)
                                       
Product purchase commitments:
                                       
Estimated payment obligations:
                                       
Natural gas
 
$
1,911.5
   
$
615.1
   
$
963.5
   
$
332.9
   
$
--
 
NGLs
 
$
99.0
   
$
69.6
   
$
29.4
   
$
--
   
$
--
 
Crude oil
 
$
7,891.3
   
$
1,352.3
   
$
2,286.8
   
$
1,456.8
   
$
2,795.4
 
Petrochemicals and refined products
 
$
632.1
   
$
411.9
   
$
220.2
   
$
--
   
$
--
 
Other
 
$
33.3
   
$
9.3
   
$
16.9
   
$
4.9
   
$
2.2
 
Underlying major volume commitments:
                                       
Natural gas (in TBtus)
   
812
     
265
     
407
     
140
     
--
 
NGLs (in MMBbls)
   
7
     
5
     
2
     
--
     
--
 
Crude oil (in MMBbls)
   
471
     
38
     
106
     
94
     
233
 
Petrochemicals and refined products
   (in MMBbls)
   
11
     
7
     
4
     
--
     
--
 
Service payment commitments (5)
 
$
398.0
   
$
98.3
   
$
144.5
   
$
87.9
   
$
67.3
 
Capital expenditure commitments (6)
 
$
171.6
   
$
171.6
   
$
--
   
$
--
   
$
--
 
Other long-term liabilities (7)
 
$
578.4
   
$
--
   
$
370.0
   
$
22.4
   
$
186.0
 
Total contractual payment obligations
 
$
60,850.6
   
$
6,723.7
   
$
9,117.6
   
$
4,998.0
   
$
40,011.3
 
                                         
(1)   Represents scheduled future maturities of our consolidated debt principal obligations. For information regarding our consolidated debt obligations, see Note 8 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report.
(2)   Estimated cash payments for interest are based on the principal amount of our consolidated debt obligations outstanding at December 31, 2017, the contractually scheduled maturities of such balances, and the applicable fixed or variable interest rates paid during 2017. With respect to our variable-rate debt obligations, we applied the weighted-average interest rate paid during 2017 to determine the estimated cash payments. See Note 8 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report for the weighted-average variable interest rates charged in 2017. In general, our estimated cash payments for interest are significantly influenced by the long-term maturities of our junior subordinated notes (due August 2066 through August 2077). Our estimated cash payments for interest with respect to each junior subordinated note are based on the current interest rate for each note applied to the entire remaining term through the respective maturity date.
(3)   Primarily represents land held pursuant to right-of-way agreements and property leases, leases of underground salt dome caverns for the storage of natural gas and NGLs, the lease of transportation equipment used in our operations and office space with affiliates of EPCO.
(4)   Represents enforceable and legally binding agreements to purchase goods or services as of December 31, 2017. The estimated payment obligations are based on contractual prices in effect at December 31, 2017 applied to all future volume commitments. Actual future payment obligations may vary depending on prices at the time of delivery.
(5)   Primarily represents our unconditional payment obligations under firm pipeline transportation contracts.
(6)   Represents unconditional payment obligations for services to be rendered or products to be delivered in connection with our capital spending program, including our share of the capital spending of our unconsolidated affiliates.
(7)   As reflected on our consolidated balance sheet at December 31, 2017, “Other long-term liabilities” primarily represent the Liquidity Option Agreement, the noncurrent portion of asset retirement obligations and deferred revenues.
 

In connection with the agreements to acquire EFS Midstream, we are obligated to spend up to an aggregate of $270 million on specified midstream gathering assets for PXD and Reliance, if requested by these producers, over a ten-year period.  If constructed, these new assets would be owned by us and be a component of the EFS Midstream System.  As of December 31, 2017, we have spent approximately $151 million of the $270 million commitment. Due to the uncertain timing of the remaining potential capital expenditures, we have excluded this amount from the preceding table.

For additional information regarding our significant contractual obligations, see Note 17 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report.

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