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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             LEVIATHAN GAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
                                  (UNAUDITED)


In order to provide security to POPCO for the additional initial capital
contributions (the "Additional Initial Capital Contributions") estimated to be
required from Poseidon LLC to complete the construction and installation of the
Poseidon Oil Pipeline, on February 14, 1996, Poseidon LLC caused a letter of
credit (the "Letter of Credit") to be issued in favor of POPCO for $40,000,000.
In the event Poseidon LLC failed to make any Additional Initial Capital
Contribution to POPCO by the required due date as stipulated in the
organizational documents, Texaco Trading had the sole right to cause POPCO to
draw on the Letter of Credit for any amount up to the amount of such unpaid
Additional Initial Capital Contribution.  The Letter of Credit was canceled in
May 1996 after POPCO entered into a revolving credit facility with a group of
commercial banks.  No amounts were drawn under the Letter of Credit.

The Poseidon Oil Pipeline will ultimately consist of approximately 200 miles of
16 to 24 inch diameter pipeline capable of delivering up to 400,000 barrels per
day of sour crude oil production to multiple markets onshore Louisiana.

NOTE 4 - EQUITY INVESTMENTS:

The summarized financial information for investments which are accounted for
using the equity method is as follows:

                    SUMMARIZED HISTORICAL OPERATING RESULTS
                                 (In thousands)


<TABLE>
<CAPTION>
                          For the three months ended March 31, 1996               For the three months ended March 31, 1995
                      ----------------------------------------------------   ---------------------------------------------------
                                                        Viosca                                                 Viosca
                         Stingray     HIOS     UTOS      Knoll    Other   Total  Stingray   HIOS      UTOS      Knoll     Total
<S>                      <C>       <C>       <C>       <C>       <C>      <C>     <C>     <C>       <C>        <C>       <C>
Operating revenue        $  6,118  $ 11,011  $ 1,092   $ 2,991                    $5,800  $  9,290  $ 1,464    $1,597 
Other income                  412        47       17         -                       326       120        6         - 
Operating expenses         (3,098)   (4,276)    (631)       10                    (2,721)   (5,184)    (776)      (85)
Depreciation               (1,715)   (1,193)    (140)     (560)                   (2,288)   (1,207)    (182)     (607)
Other expenses               (419)      (24)       -         -                      (321)     (184)     (10)        - 
                         --------  --------  -------   -------                    ------  --------  -------    ------ 
Net earnings                1,298     5,565      338     2,441                       796     2,835      502       905 
Effective ownership                                                                                                   
 percentage                   50%       40%    33.3%       50%                       50%       40%    33.3%       50% 
                         --------  --------  -------   -------                    ------  --------  -------    ------ 
                              649     2,226      113     1,220                       398     1,134      167       452 
Adjustments:                                                                                                          
- - Depreciation (a)            240       227        8         -                       637       254       23         - 
- - Contract                                                                                                            
   amortization (a)           (86)      (26)       -         -                      (101)      (99)       -         -
- - Rate refund reserve           -       (49)       -         -                         -         -        - 
- - Other                       (12)      (20)      (8)        -                       (12)       21        3         -
                         --------  --------  -------   -------                    ------  --------  -------    ------ 
Equity in earnings of
 partnerships            $    791  $  2,358  $   113   $ 1,220   $   264  $4,746  $  922  $  1,310  $   193    $  452    $ 2,877
                         ========  ========  =======   =======   =======  ======  ======  ========  =======    ======    =======
Distributions from
 partnerships (b)        $    923  $  3,000  $   400   $ 1,200   $   150  $5,673  $2,550  $  1,200  $     -    $  600    $ 4,350
                         ========  ========  =======   =======   =======  ======  ======  ========  =======    ======    =======  
</TABLE>

- ---------------------

  (a) Adjustments result from purchase price adjustments made in accordance
      with APB No. 16. "Business Combinations".
  (b) Future distributions from partnerships could be restricted by the terms
      of certain partnership credit agreements.

NOTE 5 -- CREDIT FACILITY:

On October 12, 1995, Flextrend Development and a syndicate of commercial
lenders entered into the Flextrend Credit Facility.  The Flextrend Credit
Facility provided for borrowings of up to $32.0 million at any time prior to
March 31, 1996.  As discussed below, all borrowings outstanding under the
Flextrend Credit Facility were repaid on March 26, 1996 with advances  under
the Partnership Credit Facility, as


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