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
 

 
The following table presents our consolidated revenues from Vitol by business segment for the year ended December 31, 2017 (dollars in millions):

NGL Pipelines & Services
 
$
2,099.1
 
Crude Oil Pipelines & Services
   
625.6
 
Natural Gas Pipelines & Services
   
51.1
 
Petrochemical & Refined Products Services
   
512.5
 
Total
 
$
3,288.3
 
 
Selected Energy Commodity Price Data
 
The following table presents selected index prices for natural gas, crude oil and selected NGL and petrochemical products for the periods indicated:

                                             
Refinery
Grade
Propylene,
     
WTI
Crude Oil,
     
LLS
Crude Oil,
 
   
Natural
Gas,
               
Normal
Butane,
         
Natural
Gasoline,
                   
       
Ethane,
   
Propane,
       
Isobutane,
       
PGP,
             
   
$/MMBtu
   
$/gallon
   
$/gallon
   
$/gallon
   
$/gallon
   
$/gallon
   
$/pound
   
$/pound
   
$/barrel
   
$/barrel
 
   
(1)
 
 
(2)
 
 
(2)
 
 
(2)
 
 
(2)
 
 
(2)
 
 
(3)
 
 
(3)
 
 
(4)
 
 
(4)
 
                                                                                 
2015 Averages
 
$
2.67
   
$
0.18
   
$
0.45
   
$
0.61
   
$
0.61
   
$
1.08
   
$
0.39
   
$
0.26
   
$
48.80
   
$
52.38
 
                                                                                 
2016 by quarter:
                                                                               
1st Quarter
 
$
2.09
   
$
0.16
   
$
0.38
   
$
0.53
   
$
0.53
   
$
0.76
   
$
0.31
   
$
0.18
   
$
33.45
   
$
35.11
 
2nd Quarter
 
$
1.95
   
$
0.20
   
$
0.49
   
$
0.62
   
$
0.63
   
$
0.96
   
$
0.33
   
$
0.19
   
$
45.59
   
$
47.35
 
3rd Quarter
 
$
2.81
   
$
0.19
   
$
0.47
   
$
0.63
   
$
0.67
   
$
0.98
   
$
0.38
   
$
0.24
   
$
44.94
   
$
46.52
 
4th Quarter
 
$
2.98
   
$
0.24
   
$
0.58
   
$
0.83
   
$
0.90
   
$
1.08
   
$
0.36
   
$
0.24
   
$
49.29
   
$
50.53
 
2016 Averages
 
$
2.46
   
$
0.20
   
$
0.48
   
$
0.65
   
$
0.68
   
$
0.94
   
$
0.34
   
$
0.21
   
$
43.32
   
$
44.88
 
                                                                                 
2017 by quarter:
                                                                               
1st Quarter
 
$
3.32
   
$
0.23
   
$
0.71
   
$
0.98
   
$
0.94
   
$
1.10
   
$
0.47
   
$
0.32
   
$
51.91
   
$
53.52
 
2nd Quarter
 
$
3.19
   
$
0.25
   
$
0.63
   
$
0.76
   
$
0.75
   
$
1.07
   
$
0.41
   
$
0.28
   
$
48.28
   
$
50.31
 
3rd Quarter
 
$
2.99
   
$
0.26
   
$
0.77
   
$
0.91
   
$
0.92
   
$
1.10
   
$
0.42
   
$
0.28
   
$
48.20
   
$
51.62
 
4th Quarter
 
$
2.93
   
$
0.25
   
$
0.96
   
$
1.04
   
$
1.04
   
$
1.32
   
$
0.49
   
$
0.35
   
$
55.40
   
$
61.07
 
2017 Averages
 
$
3.11
   
$
0.25
   
$
0.77
   
$
0.92
   
$
0.91
   
$
1.15
   
$
0.45
   
$
0.31
   
$
50.95
   
$
54.13
 
                           
(1)   Natural gas prices are based on Henry-Hub Inside FERC commercial index prices as reported by Platts, which is a division of McGraw Hill Financial, Inc.
(2)   NGL prices for ethane, propane, normal butane, isobutane and natural gasoline are based on Mont Belvieu Non-TET commercial index prices as reported by Oil Price Information Service.
(3)   PGP prices represent average contract pricing for such product as reported by IHS Chemical, a division of IHS Inc. (“IHS Chemical”). Refinery grade propylene prices represent weighted-average spot prices for such product as reported by IHS Chemical.
(4)   Crude oil prices are based on commercial index prices for WTI as measured on the New York Mercantile Exchange (“NYMEX”) and for Louisiana Light Sweet (“LLS”) as reported by Platts.
 

Fluctuations in our consolidated revenues and cost of sales amounts are explained in large part by changes in energy commodity prices.  Energy commodity prices fluctuate for a variety of reasons, including supply and demand imbalances and geopolitical tensions.  The weighted-average indicative market price for NGLs was $0.69 per gallon in 2017 versus $0.50 per gallon in 2016 and $0.49 per gallon in 2015.

An increase in our consolidated marketing revenues due to higher energy commodity sales prices may not result in an increase in gross operating margin or cash available for distribution, since our consolidated cost of sales amounts would also be higher due to comparable increases in the purchase prices of the underlying energy commodities.  The same relationship would be true in the case of lower energy commodity sales prices and purchase costs.

We attempt to mitigate commodity price exposure through our hedging activities and the use of fee-based arrangements.  See Note 14 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report for information regarding our commodity hedging activities.
76