Enterprise Products Partners L.P.

SEC Filings

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


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The objective of our inventory hedging program is to hedge the fair value of commodity products currently held in inventory by locking in the sales price of the inventory through the use of derivative instruments and related contracts.

The following table shows the effect of hypothetical price movements (a sensitivity analysis) on the estimated fair value of our natural gas marketing portfolio at the dates indicated (dollars in millions):

 
  
Portfolio Fair Value at
 
Scenario
Resulting
Classification
December 31,
2016
 
December 31,
2017
 
January 31,
2018
 
Fair value assuming no change in underlying commodity prices
Asset (Liability)
 
$
(5.3
)
 
$
(13.9
)
 
$
(6.0
)
Fair value assuming 10% increase in underlying commodity prices
Asset (Liability)
   
(9.7
)
   
(16.9
)
   
(6.4
)
Fair value assuming 10% decrease in underlying commodity prices
Asset (Liability)
   
(0.9
)
   
(10.8
)
   
(5.6
)

The following table shows the effect of hypothetical price movements (a sensitivity analysis) on the estimated fair value of our NGL marketing, refined products marketing and octane enhancement portfolios at the dates indicated (dollars in millions):

 
  
Portfolio Fair Value at
 
Scenario
Resulting
Classification
December 31,
2016
 
December 31,
2017
 
January 31,
2018
 
Fair value assuming no change in underlying commodity prices
Asset (Liability)
 
$
(150.3
)
 
$
(76.4
)
 
$
(35.7
)
Fair value assuming 10% increase in underlying commodity prices
Asset (Liability)
   
(227.7
)
   
(126.1
)
   
(54.1
)
Fair value assuming 10% decrease in underlying commodity prices
Asset (Liability)
   
(73.0
)
   
(26.8
)
   
(17.3
)

The following table shows the effect of hypothetical price movements (a sensitivity analysis) on the estimated fair value of our crude oil marketing portfolio at the dates indicated (dollars in millions):

 
  
Portfolio Fair Value at
 
Scenario
Resulting
Classification
December 31,
2016
 
December 31,
2017
 
January 31,
2018
 
Fair value assuming no change in underlying commodity prices
Asset (Liability)
 
$
(42.4
)
 
$
(65.5
)
 
$
(32.7
)
Fair value assuming 10% increase in underlying commodity prices
Asset (Liability)
   
(80.0
)
   
(109.4
)
   
(79.3
)
Fair value assuming 10% decrease in underlying commodity prices
Asset (Liability)
   
(4.7
)
   
(21.6
)
   
13.9
 

Interest Rate Hedging Activities

We may utilize interest rate swaps, forward starting swaps and similar derivative instruments to manage our exposure to changes in interest rates charged on borrowings under certain consolidated debt agreements.  This strategy may be used in controlling our overall cost of capital associated with such borrowings.  The composition of our derivative instrument portfolios may change depending on our hedging requirements.

With respect to the tabular data below, each portfolio’s estimated fair value at a given date is based on a number of factors, including the number and types of derivatives outstanding at that date, the notional value of the swaps and associated interest rates.
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