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

On September 2, 2016, we terminated AFW for cause and filed a lawsuit in the 151st Judicial Civil District Court of Harris County, Texas against AFW and its parent company, Amec Foster Wheeler plc, asserting claims for breach of contract, breach of warranty, fraudulent inducement, string-along fraud, gross negligence, professional negligence, negligent misrepresentation and attorneys’ fees.  We intend to diligently prosecute these claims and seek all direct, consequential, and exemplary damages to which we may be entitled.

Redelivery Commitments
We store natural gas, crude oil, NGLs and certain petrochemical products owned by third parties under various agreements.  Under the terms of these agreements, we are generally required to redeliver volumes to the owner on demand.  At December 31, 2017, we had approximately 9.0 trillion British thermal units (“TBtus”) of natural gas, 15.8 MMBbls of crude oil, and 39.3 MMBbls of NGL and petrochemical products in our custody that were owned by third parties.  We maintain insurance coverage related to such volumes that we believe is consistent with our exposure.  See Note 18 for information regarding insurance matters.

Commitments Under Equity Compensation Plans of EPCO
In accordance with our agreements with EPCO, we reimburse EPCO for our share of its compensation expense associated with certain employees who perform management, administrative and operating functions for us.  See Notes 13 and 15 for additional information regarding our accounting for equity-based awards and related party information, respectively.

Contractual Obligations
The following table summarizes our various contractual obligations at December 31, 2017.  A description of each type of contractual obligation follows:

 
 
Payment or Settlement due by Period
 
Contractual Obligations
 
Total
   
2018
   
2019
   
2020
   
2021
   
2022
   
Thereafter
 
Scheduled maturities of debt obligations
 
$
24,780.1
   
$
2,855.7
   
$
1,500.0
   
$
1,500.0
   
$
575.0
   
$
650.0
   
$
17,699.4
 
Estimated cash interest payments
 
$
23,942.0
   
$
1,082.9
   
$
1,022.1
   
$
964.2
   
$
912.1
   
$
884.7
   
$
19,076.0
 
Operating lease obligations
 
$
413.3
   
$
57.0
   
$
52.8
   
$
47.2
   
$
40.0
   
$
31.3
   
$
185.0
 
Purchase obligations:
                                                       
Product purchase commitments:
                                                       
Estimated payment obligations:
                                                       
Natural gas
 
$
1,911.5
   
$
615.1
   
$
528.6
   
$
434.9
   
$
332.9
   
$
--
   
$
--
 
NGLs
 
$
99.0
   
$
69.6
   
$
29.4
   
$
--
   
$
--
   
$
--
   
$
--
 
Crude oil
 
$
7,891.3
   
$
1,352.3
   
$
1,341.0
   
$
945.8
   
$
728.4
   
$
728.4
   
$
2,795.4
 
Petrochemicals & refined products
 
$
632.1
   
$
411.9
   
$
214.1
   
$
6.1
   
$
--
   
$
--
   
$
--
 
Other
 
$
33.3
   
$
9.3
   
$
9.3
   
$
7.6
   
$
3.5
   
$
1.4
   
$
2.2
 
Underlying major volume commitments:
                                                       
Natural gas (in TBtus)
   
812
     
265
     
225
     
182
     
140
     
--
     
--
 
NGLs (in MMBbls)
   
7
     
5
     
2
     
--
     
--
     
--
     
--
 
Crude oil (in MMBbls)
   
471
     
38
     
55
     
51
     
47
     
47
     
233
 
Petrochemicals & refined products (in MMBbls)
   
11
     
7
     
4
     
--
     
--
     
--
     
--
 
Service payment commitments
 
$
398.0
   
$
98.3
   
$
84.5
   
$
60.0
   
$
44.8
   
$
43.1
   
$
67.3
 
Capital expenditure commitments
 
$
171.6
   
$
171.6
   
$
--
   
$
--
   
$
--
   
$
--
   
$
--
 

Scheduled Maturities of Debt.  We have long-term and short-term payment obligations under debt agreements.  Amounts shown in the preceding table represent our scheduled future maturities of debt principal for the periods indicated.  See Note 8 for additional information regarding our consolidated debt obligations.

Estimated Cash Interest Payments.  Our estimated cash payments for interest are based on the principal amount of our consolidated debt obligations outstanding at December 31, 2017 and the contractually scheduled maturities of such balances.  With respect to our variable-rate debt obligation, we applied the weighted-average interest rate paid during 2017 to determine the estimated cash payments.  Our estimated cash payments for interest are significantly influenced by the long-term maturities of our $3.17 billion in junior subordinated notes.  Our estimated cash payments for interest assume that these subordinated notes are not repaid prior to their respective maturity dates.  We applied the current fixed interest rate through the respective maturity date for each junior subordinated note to determine the estimated cash payments for interest.  See Note 8 for information regarding fixed and weighted-average variable interest rates charged in 2017.
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