Enterprise Products Partners L.P.

SEC Filings

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

The following table presents a reconciliation of net cash flows provided by operating activities to non-GAAP distributable cash flow for the periods indicated (dollars in millions):

For the Year Ended December 31,
Net cash flows provided by operating activities
Adjustments to reconcile net cash flows provided by operating activities
   to distributable cash flow:
      Subtract sustaining capital expenditures
      Add cash proceeds from asset sales
      Add gains from monetization of interest rate derivative instruments accounted
         for as cash flow hedges
      Net effect of changes in operating accounts
      Other, net
Distributable cash flow

Designated Units Issued in Connection with Holdings Merger
In November 2010, we completed our merger with Enterprise GP Holdings L.P. (the “Holdings Merger”).  In connection with the Holdings Merger, a privately held affiliate of EPCO agreed to temporarily waive the regular cash distributions it would otherwise receive from us with respect to a certain number of our common units it owns (the “Designated Units”).  Distributions paid by us to this privately held affiliate of EPCO during 2015 excluded 35,380,000 Designated Units.  The temporary distribution waiver expired in November 2015; therefore, distributions paid to partners during calendar years 2016 and 2017 were on all outstanding common units.

Capital Spending

An important part of our business strategy involves expansion through growth capital projects, business combinations and investments in joint ventures.  We believe that we are well positioned to continue to expand our network of assets through the construction of new facilities and to capitalize on expected increases in natural gas, NGL and crude oil production resulting from development activities in the Rocky Mountains, Mid-Continent, Northeast and U.S. Gulf Coast regions, including the Niobrara, Barnett, Eagle Ford, Permian, Haynesville, Marcellus and Utica Shale plays.  Although our focus in recent years has been on expansion through growth capital projects, management continues to analyze potential business combinations, asset acquisitions, joint ventures and similar transactions with businesses that operate in complementary markets or geographic regions.

We placed approximately $4.5 billion of major growth capital projects into service or commissioning during 2017, including our PDH facility, our Midland-to-ECHO Pipeline System (limited service) and expansions related to our propylene pipeline system and Beaumont refined products terminal.  We have approximately $5.5 billion of growth capital projects scheduled to be completed by the end of 2020 including our ninth NGL fractionator in Mont Belvieu, Texas (second quarter of 2018), the completion of joint venture-owned dock infrastructure in Corpus Christi designed to accommodate crude oil volumes (third quarter of 2018), the Shin Oak NGL pipeline (second quarter of 2019), our iBDH facility (fourth quarter of 2019) and the ethylene export terminal (first quarter of 2020).

Based on information currently available, we expect our total capital spending for 2018 to approximate $3.3 billion, which includes approximately $315 million for sustaining capital expenditures.  Our forecast of capital spending for 2018 is based on our announced strategic operating and growth plans (through the filing date of this annual report), which are dependent upon our ability to generate the required funds from either operating cash flows or other means, including borrowings under debt agreements, the issuance of additional equity and debt securities, and potential divestitures.  We may revise our forecast of capital spending due to factors beyond our control, such as adverse economic conditions, weather related issues and changes in supplier prices.  Furthermore, our forecast of capital spending may change as a result of decisions made by management at a later date, which may include unforeseen acquisition opportunities.