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 Acadian Gas System increased a net $7.1 million year-to-year primarily due to $17.4 million of proceeds received in a legal settlement in the second quarter of 2017 for lost revenues and damages associated with the Bayou Corne sinkhole incident caused by third parties in 2012, partially offset by lower firm capacity reservation revenues on the Haynesville Extension pipeline, which accounted for a $6.4 million year-to-year decrease, and lower average gathering fees, which accounted for an additional $1.8 million decrease.  Gross operating margin from our Haynesville Gathering System increased a net $8.4 million year-to-year primarily due to higher gathering volumes, which accounted for an $11.7 million increase, partially offset by the effects of lower average gathering fees, which accounted for a $2.8 million decrease. Transportation volumes for the Haynesville Extension pipeline, which is a component of the Acadian Gas System, increased 308 BBtus/d and volumes for the Haynesville Gathering System increased 213 BBtus/d.
Gross operating margin from our natural gas marketing activities increased a net $8.8 million year-to-year primarily due to an increase in average sales margins, which accounted for a $7.9 million increase, and higher sales volumes, which accounted for an additional $4.8 million increase, partially offset by non-cash mark-to-market losses, which accounted for a $3.9 million decrease.  Non-cash mark-to-market earnings for this business was a loss of $7.9 million in 2017 versus a loss of $4.0 million in 2016.
Comparison of 2016 with 2015.  Gross operating margin from our Natural Gas Pipelines & Services segment for 2016 decreased $47.7 million when compared to 2015.
Gross operating margin from our Acadian Gas System decreased $18.8 million year-to-year primarily due to reduced transportation fees.  Gross operating margin from our Texas Intrastate System decreased $16.8 million year-to-year primarily due to lower revenues attributable to decreased producer drilling activity in the Eagle Ford Shale and Barnett Shale.  Transportation volumes on our Texas Intrastate System decreased 149 BBtus/d year-to-year.
Collectively, gross operating margin for 2016 from our San Juan, Jonah, Piceance Basin and Fairplay Gathering Systems decreased $18.4 million when compared to 2015, the primarily driver of which is a combined 363 BBtus/d decrease in gathering volumes.  Gross operating margin from our natural gas marketing activities decreased a net $2.8 million year-to-year primarily due to mark-to-market losses recorded in 2016 on financial instruments related to commodity hedging.
Gross operating margin from our Carlsbad Gathering System in West Texas and New Mexico increased $13.0 million year-to-year primarily due to higher gathering volumes of 97 BBtus/d.
Petrochemical & Refined Products Services
The following table presents segment gross operating margin and selected volumetric data for the Petrochemical & Refined Products 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:
                 
Propylene production and related activities
 
$
222.4
   
$
212.1
   
$
189.5
 
Butane isomerization and related operations
   
72.3
     
52.0
     
65.2
 
Octane enhancement and related plant operations
   
122.6
     
42.2
     
144.3
 
Refined products pipelines and related activities
   
280.1
     
305.6
     
258.8
 
Marine transportation and other
   
17.2
     
38.7
     
60.7
 
Total
 
$
714.6
   
$
650.6
   
$
718.5
 
 
                       
Selected volumetric data:
                       
Propylene production volumes (MBPD)
   
80
     
73
     
71
 
Butane isomerization volumes (MBPD)
   
107
     
108
     
96
 
Standalone DIB processing volumes (MBPD)
   
82
     
89
     
79
 
Octane additive and related plant production volumes (MBPD)
   
26
     
22
     
17
 
Pipeline transportation volumes, primarily refined products & petrochemicals (MBPD)
   
792
     
837
     
784
 
Refined products and petrochemical marine terminal volumes (MBPD)
   
406
     
389
     
355
 

87