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
 

ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Natural gas storage contracts generate revenue typically by two components: (i) monthly demand payments, which are associated with a customer’s storage capacity reservation and paid regardless of actual usage, and (ii) storage fees per unit of volume stored at our facilities.  Revenue from demand payments is recognized during the period the customer reserves capacity.  Revenue from storage fees is recognized in the period the services are provided.

Petrochemical & Refined Products Services

Sales of petrochemicals and refined products
Our petrochemical marketing activities include the purchase and fractionation of refinery grade propylene obtained on the open market and generate revenues from the sale and delivery of polymer grade propylene to customers at market-based prices. Revenues from our propane dehydrogenation (“PDH”) facility are dependent on the level of minimum volume commitments by customers and the associated contractual fees paid by them for polymer grade propylene during a given period.

Revenue from the production and sale of octane additives and high purity isobutylene is dependent on the volume of such commodities sold and delivered to customers at market-based prices.  

Revenue from refined products marketing is dependent on the volume of such commodities purchased on the open market and sold and delivered to customers at market-based prices.

Midstream services
Propylene fractionation, butane isomerization and deisobutanizer facilities generate revenue through fee-based toll arrangements with customers, with such arrangements typically including a base-processing fee subject to adjustment for changes in power, fuel and labor costs.  Revenue resulting from such agreements is recognized in the period the services are provided.

Petrochemical and refined products transportation contracts generate revenue based upon a fixed fee per volume multiplied by the volume transported and delivered.  Transportation fees charged to shippers are based on either tariffs regulated by governmental agencies or contractual arrangements.    

Refined products storage contracts generate revenue based on capacity reservation where we collect a fee for reserving a defined storage capacity for customers at our facilities.  Under these contracts, revenue is recognized on a straight-line basis over the length of the storage period.  

Refined product terminaling contracts generate revenue based on a fee per unit of volume loaded or unloaded and are recognized in the period such services are provided.

Marine transportation contracts generate revenue based on set day rates or a set fee per cargo movement recognized over the transit time of individual tows.  Additionally, we record revenue for costs of fuel and other specified operational fees that are directly reimbursed by the customer under most of these contracts.

Offshore Pipelines & Services
In July 2015, we sold our Offshore Business, which comprised our Offshore Pipelines & Services segment. See Note 10 for additional information related to this sale.


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