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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Crude Oil Pipelines & Services
The following table presents segment gross operating margin and selected volumetric data for the Crude Oil Pipelines & Services segment for the years indicated (dollars in millions, volumes as noted):

 
 
For the Year Ended December 31,
 
 
 
2017
   
2016
   
2015
 
Segment gross operating margin
 
$
987.2
   
$
854.6
   
$
961.9
 
Selected volumetric data:
                       
Crude oil pipeline transportation volumes (MBPD)
   
1,820
     
1,388
     
1,474
 
Crude oil marine terminal volumes (MBPD)
   
531
     
495
     
557
 

Comparison of 2017 with 2016.  Gross operating margin from our Crude Oil Pipelines & Services segment for 2017 increased a net $132.6 million when compared to 2016.

Gross operating margin from our Midland-to-ECHO Pipeline System was $63.3 million for 2017 on transportation volumes of 333 MBPD.  This system commenced limited operations in November 2017.

Gross operating margin from our West Texas System and equity investment in the Eagle Ford Crude Oil Pipeline System increased a combined $54.7 million year-to-year primarily due to an 89 MBPD increase in crude oil transportation volumes (net to our interest) from the Permian Basin.

Gross operating margin from our EFS Midstream System increased $31.7 million year-to-year primarily due to increased deficiency fee revenues. Condensate transportation volumes for this system decreased 18 MBPD year-to-year and associated natural gas volumes decreased 101 MMcf/d year-to-year.  Gross operating margin for the system decreased $59.7 million year-to-year primarily due to the lower throughput volumes; however, this decrease was more than offset by a $98.1 million year-to-year increase in deficiency fee revenues associated with producer volume commitments.

Gross operating margin from our South Texas Crude Oil Pipeline System increased $25.0 million primarily due to higher firm capacity reservation fees associated with the Midland-to-ECHO Pipeline System, which accounted for a $17.1 million increase, and increased blending revenues, which accounted for an additional $11.5 million increase.  Crude oil transportation volumes decreased 9 MBPD year-to-year.

Gross operating margin from crude oil marketing and related activities decreased a net $43.4 million year-to-year primarily due to lower average sales margins, which accounted for a $94.7 million decrease, partially offset by a $35.6 million benefit related to non-cash mark-to-market results, lower pipeline-related costs, which accounted for a $7.8 million increase, and higher earnings from trucking activities, which accounted for an additional $7.5 million increase.  Non-cash mark-to-market earnings for this business was a loss of $4.8 million for 2017 versus a loss of $40.4 million for 2016.

Comparison of 2016 with 2015.  Gross operating margin from our Crude Oil Pipelines & Services segment for 2016 decreased $107.3 million when compared to 2015.

Gross operating margin from our crude oil marketing and related activities decreased $187.5 million year-to-year primarily due to lower crude oil sales margins, which accounted for a $147.1 million decrease, and $40.4 million of net non-cash mark-to-market losses recognized in 2016 on financial instruments related to blending activities.  As a result of lower crude oil prices, regional price spreads have been less than the transportation costs incurred by our marketing business, particularly on its 75 MBPD of firm capacity on the Seaway Pipeline (25 MBPD of this capacity terminated in June 2017).

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