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
 


Gross operating margin from our South Texas Crude Oil Pipeline System decreased $95.0 million year-to-year primarily due to a 74 MBPD decrease in volumes, which accounted for a $66.6 million decrease, and a $32.4 million decrease due to lower average transportation fees.  The decrease in crude oil transportation volumes is attributable to reduced producer drilling activity in the Eagle Ford Shale.  Gross operating margin from our EFS Midstream system, which we acquired effective July 1, 2015, increased $127.9 million year-to-year due to the timing of the acquisition of these assets.  Gross operating margin for this system reflects twelve months of ownership in 2016 versus six months in 2015.

Gross operating margin from crude oil terminaling services at our Beaumont Marine West and ECHO terminals increased a combined $33.9 million year-to-year primarily due to expansion projects.

Gross operating margin from our investment in Seaway for 2016 increased $14.2 million when compared to 2015 primarily due to the settlement of a rate case with the Federal Energy Regulatory Commission (“FERC”) in the first quarter of 2016.  In February 2016, the FERC issued its decision regarding the various challenges to Seaway’s committed and uncommitted rates in FERC Docket No. IS12-226-000.  The FERC upheld the committed rates and rejected the claim that the committed rates should be reduced to cost-based levels. The FERC’s rulings regarding the uncommitted rates were also largely favorable to Seaway.  Seaway submitted a compliance filing in March 2016 calculating revised uncommitted rates consistent with the FERC’s order. The compliance filing was not challenged and the FERC accepted the revised rates.  On a 100% basis, Seaway recorded a $24.5 million benefit related to settlement of the rate case, with our 50% share of the benefit equating to $12.3 million.

Natural Gas Pipelines & Services
The following table presents segment gross operating margin and selected volumetric data for the Natural Gas 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
 
$
714.5
   
$
734.9
   
$
782.6
 
Selected volumetric data:
                       
Natural gas pipeline transportation volumes (BBtus/d)
   
12,305
     
11,874
     
12,321
 

Comparison of 2017 with 2016.  Gross operating margin from our Natural Gas Pipelines & Services segment for 2017 decreased a net $20.4 million when compared to 2016.
Gross operating margin from our Texas Intrastate System decreased $51.4 million year-to-year primarily due to lower firm capacity reservation fees, which accounted for a $30.1 million decrease, lower natural gas transportation volumes, which accounted for an $8.5 million decrease, lower average transportation fees, which accounted for a $7.1 million decrease, and increased operating costs, which accounted for an additional $3.4 million decrease. Natural gas transportation volumes for the Texas Intrastate System decreased 324 BBtus/d year-to-year reflecting reduced drilling activity in the Eagle Ford Shale.
Gross operating margin from our Jonah Gathering System decreased $12.3 million year-to-year primarily due to lower average gathering fees, which accounted for a $6.5 million decrease, a 32 BBtus/d decline in natural gas gathering volumes, which accounted for a $3.4 million decrease, and higher operating costs, which accounted for an additional $3.2 million decrease.
Gross operating margin from our Permian Basin Gathering System increased $10.5 million year-to-year primarily due to a 60 BBtus/d increase in natural gas gathering volumes on the Carlsbad Pipeline, which accounted for a $7.0 million increase, and higher condensate sales revenues, which accounted for an additional $2.4 million increase.  Natural gas production in the Permian Basin has increased in connection with a significant rise in crude oil production across West Texas and southeastern New Mexico.
Gross operating margin from the East Texas natural gas pipeline assets we acquired from Azure in April 2017 was $9.0 million on gathering volumes of 220 BBtus/d.
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