|ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018|
Risks of nonpayment and nonperformance by customers are a major consideration in our businesses, and our credit procedures and policies may not be adequate to sufficiently eliminate customer credit risk. Further, adverse economic conditions in our industry, such as those experienced throughout 2015 and 2016, increase the risk of nonpayment and nonperformance by customers, particularly customers that have sub-investment grade credit ratings or small-scale companies. Such non-performance risk could be associated with long-term contracts with minimum volume commitments or fixed demand charges. We manage our exposure to credit risk through credit analysis, credit approvals, credit limits and monitoring procedures, and for certain transactions may utilize letters of credit, prepayments, net out agreements and guarantees. However, these procedures and policies do not fully eliminate customer credit risk.
Our primary markets are located in the Gulf Coast, Southwest, Rocky Mountain, Northeast and Midwest regions of the U.S. We have a concentration of trade receivable balances due from independent and major integrated oil and gas companies and other pipelines and wholesalers. These concentrations may affect our overall credit risk in that these energy industry customers may be similarly affected by changes in economic, regulatory or other factors.
For a more complete discussion of these and other risk factors pertinent to our business, see Part I, Item 1A of this annual report.
The following information highlights significant year-to-year fluctuations in our consolidated cash flow amounts:
Comparison of 2017 with 2016
Operating activities. Net cash flows provided by operating activities for the year ended December 31, 2017 increased $599.5 million when compared to the year ended December 31, 2016. The increase in cash provided by operating activities was primarily due to:
For information regarding significant year-to-year changes in our consolidated net income and underlying segment results, see “Results of Operations” within this Part II, Item 7.
Investing activities. Cash used for investing activities for the year ended December 31, 2017 decreased $719.7 million when compared to the same period in 2016 primarily due to: