Enterprise Products Partners L.P.

SEC Filings

10-Q
GULFTERRA ENERGY PARTNERS L P filed this Form 10-Q on 05/15/1996
Entire Document
 
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was primarily attributable to an increase in depreciation, depletion and
amortization of $3.3 million and operating expenses of $0.8 million, partially
offset by a $0.3 million decrease in the Partnership's management fees and
other general and administrative expenses.  The increase in depreciation,
depletion and amortization results primarily from accelerated depreciation on
the Ewing Bank flow lines, depreciation on additional platforms and facilities
constructed by the Partnership and depreciation and depletion on the oil and
gas wells and facilities located on the Viosca Knoll Block 817.  The increase
in operating expenses is primarily attributable to the operation of new
pipelines, platforms and leases by the Partnership.  The decrease in the
Partnership's management fees and other general and administrative expenses
reflects a $0.8 million reimbursement to DeepTech for certain tax liabilities
incurred by DeepTech as a result of the Partnership's public offering of an
additional 3,000,000 Preference Units in June 1994 and a $1.3 million
reimbursement from POPCO as a result of the Partnership's management of Phase I
of the construction of the Poseidon Oil Pipeline.

Interest income and other totaled $0.3 million for the three months ended March
31, 1996 as compared with $0.2 million for the three months ended March 31,
1995.  The increase in interest income is primarily due to additional cash
balances available for the three months ended March 31, 1996.  Interest and
other financing costs, net of capitalized interest, for the three months ended
March 31, 1996 totaled $0.6 million as compared with $0.1 million for the three
months ended March 31, 1995.  Interest and fees associated with the Partnership
Credit Facility and the Flextrend Credit Facility of $4.8 million were
capitalized as a part of the assets which were under construction during the
first quarter of 1996.

Net income for the three months ended March 31, 1996 totaled $10.9 million as
compared with $3.9 million for the three months ended March 31, 1995 as a
result of the items discussed above. Net income per Unit for the three months
ended March 31, 1996 totaled $0.89 per Unit as compared with $0.32 per Unit for
the three months ended March 31, 1995.

Total transportation volumes for the Joint Venture Companies increased 9.4%
from the three months ended March 31, 1995 to the three months ended March 31,
1996 primarily as a result of increased throughput on the Viosca Knoll and HIOS
systems.  Total transportation volumes for the Gathering Systems (LOGS, Green
Canyon, Tarpon, Manta Ray and Ewing Bank) increased 4.3% from the three months
ended March 31, 1995 to the three months ended March 31, 1996.  This increase
is primarily a result of increased throughput on the Green Canyon system as a
result of the addition of Green Canyon Block 136 partially offset by lower
production from the producing fields attached to the LOGS, Manta Ray and Tarpon
systems.

LIQUIDITY AND CAPITAL RESOURCES

Sources of Cash.  The Partnership intends to satisfy its capital requirements
and other working capital needs primarily from cash on hand, cash from
continuing operations and borrowings under the Partnership Credit Facility.  At
March 31, 1996, the Partnership had cash and cash equivalents of $6.6 million.

Cash from continuing operations is derived from (i) payments for transporting
gas through the 100% owned pipelines, (ii) cash distributions from the
Stingray, HIOS, UTOS and Viosca Knoll partnerships and from POPCO and West
Cameron Dehy, (iii) platform access and processing fees and (iv) the sale of
oil and gas from producing wells.

Stingray, HIOS, UTOS and Viosca Knoll are partnerships and POPCO and West
Cameron Dehy are limited liability companies in which the Partnership owns an
interest.  The Partnership's cash flows from operations will be affected by the
ability of such entities to make distributions.  Distributions from such
entities are also subject to the discretion of their respective management
committees.  Further, each of Stingray and POPCO





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