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
 


Consolidated Income Statement Highlights

The following information highlights significant changes in our comparative income statement amounts and the primary drivers of such changes.

Comparison of 2017 with 2016

Revenues
Total revenues for 2017 increased $6.22 billion when compared to total revenues for 2016.  Revenues from the marketing of crude oil, natural gas, petrochemicals, refined products and octane additives increased $3.98 billion year-to-year primarily due to higher sales prices, which accounted for a $2.75 billion increase, and higher sales volumes, which accounted for an additional $1.23 billion increase.  Revenues from the marketing of NGLs increased $2.14 billion year-to-year primarily due to higher sales prices, which accounted for a $3.19 billion increase, partially offset by a $1.05 billion decrease due to lower sales volumes.

Revenues from midstream services increased a net $94.7 million year-to-year primarily due to the ongoing expansion of our operations.  Revenues increased $54.6 million year-to-year from our Morgan’s Point Ethane Export Terminal that was placed into service in September 2016.  Revenues increased $48.7 million year-to-year primarily due to higher deficiency fees on our South Texas crude pipelines.  In addition, we received $19.1 million of business interruption insurance proceeds related to the June 2016 fire and associated downtime at our Pascagoula facility.  These revenue increases were partially offset by a $27.7 million year-to-year decrease in revenues primarily due to lower firm capacity reservation revenues on the Haynesville Extension pipeline and lower volumes and lower average gathering fees on our Jonah Gathering System.

Operating costs and expenses
Total operating costs and expenses for 2017 increased $5.91 billion when compared to total operating costs and expenses for 2016.  The cost of sales associated with our marketing of crude oil, natural gas, petrochemicals, refined products and octane additives increased $3.59 billion year-to-year primarily due to higher purchase prices, which accounted for a $2.52 billion increase, and higher sales volumes, which accounted for an additional $1.06 billion increase. The cost of sales associated with our marketing of NGLs increased a net $2.19 billion year-to-year primarily due to higher purchase prices, which accounted for a $3.06 billion increase, partially offset by an $873.9 million decrease due to lower sales volumes.

Other operating costs and expenses for 2017 increased a net $74.5 million when compared to 2016.  Other operating costs and expenses increased primarily due to higher employee compensation, power-related costs, ad valorem tax and maintenance expense, partially offset by $17.4 million of proceeds received in connection with a legal settlement involving our Acadian Gas System in the second quarter of 2017.

Depreciation, amortization and accretion expense in operating costs and expenses for 2017 increased a net $74.6 million when compared to 2016 primarily due to assets we constructed and placed into service since 2016.

Operating costs and expenses also include $49.8 million and $52.8 million of non-cash asset impairment and related charges for the years ended December 31, 2017 and 2016, respectively.  See Note 14 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report for information regarding our nonrecurring fair value measurements.

General and administrative costs
General and administrative costs for 2017 increased $21.0 million when compared to 2016 primarily due to higher legal, regulatory and employee compensation costs.   General and administrative costs for 2016 include $0.7 million of non-cash asset impairment charges.

Equity in income of unconsolidated affiliates
Equity income from our unconsolidated affiliates for 2017 increased a net $64.0 million when compared to 2016 primarily due to an increase in earnings from our investments in crude oil pipelines joint ventures.
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