Enterprise Products Partners L.P.

SEC Filings

10-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018
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Gross operating margin from our natural gas processing plants in South Texas decreased a net $9.9 million year-to-year primarily due to lower fee-based processing volumes, which accounted for a $17.6 million decrease, and higher operating costs of $7.3 million, partially offset by higher average processing margins, which accounted for an $18.0 million increase.  Lower producer drilling activity in South Texas contributed to a 352 MMcf/d decrease in fee-based natural gas processing volumes for these plants.

Gross operating margin from our South Eddy natural gas processing plant increased $3.9 million year-to-year.  Fee-based natural gas processing volumes and equity NGL production for this plant increased 96 MMcf/d and 3 MBPD, respectively, year-to-year.  As previously noted, the South Eddy plant commenced operations in May 2016.

Comparison of 2016 with 2015.  Gross operating margin from natural gas processing and related NGL marketing activities for 2016 decreased $48.4 million when compared to 2015.

Collectively, gross operating margin from our Meeker, Pioneer and Chaco plants decreased $53.8 million year-to-year primarily due to lower processing margins, including the impact of our related hedging activities.  Gross operating margin from our South Texas plants decreased $49.8 million year-to-year attributable to lower average processing fees and margins, which accounted for a combined $38.1 million decrease, and lower fee-based processing volumes of 227 MMcf/d, which accounted for a $15.8 million decrease.  Gross operating margin from our natural gas processing plants in Louisiana and Mississippi decreased a combined $21.6 million year-to-year primarily due to lower processing margins, which accounted for a $6.4 million decrease (including the impact of related hedging activities), and higher operating expenses.  Operating expenses at these plants increased $12.1 million year-to-year, which includes $10.4 million of costs attributable to a fire that occurred at our Pascagoula facility in June 2016.

Gross operating margin from our NGL marketing activities increased a net $74.6 million year-to-year primarily due to higher sales volumes, which accounted for a $261.3 million increase, partially offset by a $186.7 million decrease due to lower sales margins. Results from NGL marketing’s export-oriented strategies increased $119.2 million year-to-year, which was partially offset by a $44.6 million net decrease in gross operating margin from NGL marketing’s other strategies.

NGL pipelines, storage and terminals

Comparison of 2017 with 2016.  Gross operating margin from NGL pipelines, storage and terminal assets for 2017 increased a net $195.6 million when compared to 2016.

Gross operating margin from ATEX increased $57.2 million year-to-year primarily due to contractual increases in committed shipper volumes and interruptible shipper volumes.  Gross operating margin from our equity investments in the Texas Express Gathering System and the Texas Express Pipeline increased a combined $18.3 million year-to-year primarily due to contractual increases in committed shipper volumes.  On a combined basis, NGL transportation volumes for these pipeline systems increased 21 MBPD year-to-year (net to our interest).

Gross operating margin from our Morgan’s Point Ethane Export Terminal and Houston Ship Channel Pipeline System increased a combined $52.9 million year-to-year primarily due to higher volumes.  Ethane loading volumes at our Morgan’s Point Ethane Export Terminal increased 75 MBPD year-to-year.  In addition, transportation volumes on our Houston Ship Channel Pipeline System increased 105 MBPD year-to-year primarily due to shipments of ethane from Mont Belvieu to the Morgan’s Point terminal.

Gross operating margin from our storage complex in Mont Belvieu for NGLs and related products increased $50.7 million year-to-year primarily due to higher average fees in 2017.

Gross operating margin from our Seminole, Chaparral and affiliated pipelines increased a combined net $23.1 million year-to-year primarily due to higher average transportation fees, which accounted for a $15.9 million increase, and higher transportation volumes, which accounted for an additional $14.8 million increase, partially offset by higher operating costs of $6.6 million.  On a combined basis, NGL transportation volumes on these pipelines increased 33 MBPD primarily due to increased production from natural gas processing plants located in the Permian Basin and Rocky Mountains.
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