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

NGL and related product storage contracts generate revenue from capacity reservation where we collect a fee for reserving storage capacity for customers in our underground storage wells.  Under these agreements, revenue is recognized on a straight-line basis over the specified reservation period.   In addition, we generally charge customers throughput fees based on volumes delivered into and subsequently withdrawn from storage, which are recognized as the service is provided.

NGL import and export terminaling activities generate revenue in the period services are provided.  Customers are typically billed a fee per unit of volume loaded or unloaded.  

Crude Oil Pipelines & Services

Sales of crude oil
Crude oil marketing activities generate revenues from the sale and delivery of crude oil purchased either directly from producers or on the open market.  Revenue from these sales contracts is recognized when crude oil is sold and delivered to customers at market-based prices.

Midstream services
Crude oil transportation contracts and tariffs generally generate revenue based upon a fixed fee per barrel multiplied by the volume transported and delivered (or capacity reserved).  Transportation fees charged to shippers are based on either tariffs regulated by governmental agencies or contractual arrangements.  Under certain agreements, customers are required to ship a minimum volume over an agreed-upon period, with make-up rights.  Revenue pursuant to such agreements is initially deferred and subsequently recognized at the earlier of when the deficiency volume is shipped, when the shipper’s ability to meet the minimum volume commitment has expired, or when the pipeline is otherwise released from its performance obligation.

Condensate gathering, processing and stabilization services as well as crude oil gathering, treating and pumping services generate revenue based upon the higher of actual volumes handled or minimum volume commitments multiplied by predominantly fixed fees charged for the underlying services.  The producer pays a deficiency fee when its volumes do not meet contractually defined minimum volume thresholds (these agreements have no make-up rights).

Crude oil storage and terminaling agreements generate revenue based on capacity reservation where we collect a fee for reserving storage capacity for customers at our terminals.  Under these agreements, revenue is recognized on a straight-line basis over the specified reservation period.  In addition, customers are typically billed a fee per unit of volume loaded or unloaded at our terminals.  

Natural Gas Pipelines & Services

Sales of natural gas
Natural gas marketing activities generate revenue from the sale and delivery of natural gas purchased from producers, regional natural gas processing plants and on the open market.  Revenue from these sales contracts is recognized when natural gas is sold and delivered to customers at market-based prices.  

Midstream services
Natural gas transportation contracts generate revenues based on a fee per unit of volume transported multiplied by the volume gathered or delivered.  Transportation fees charged to shippers are based on either tariffs regulated by governmental agencies or contractual arrangements.  Certain of our natural gas pipelines offer firm capacity reservation services whereby the shipper pays a contractual fee based on the level of throughput capacity reserved (whether or not the shipper actually utilizes such capacity).  Revenues are recognized when volumes have been delivered to customers or in the period we provide firm capacity reservation services.
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