Enterprise Products Partners L.P.

SEC Filings

10-Q
GULFTERRA ENERGY PARTNERS L P filed this Form 10-Q on 08/13/1996
Entire Document
 
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of $2.6 million related to HIOS and UTOS as a result of lower rates during 1996
offset by increases of $0.7 million from Viosca Knoll as a result of increased
throughput and $0.2 million from West Cameron Dehy, which was placed in service
in November 1995.  Revenue from oil and gas sales totaled $8.6 million for the
three months ended June 30, 1996 as compared with $0.2 million for the three
months ended June 30, 1995. The increase in oil and gas sales of $8.4 million
is primarily attributable to the initiation of production from the
Partnership's Viosca Knoll Block 817 lease in December 1995 and the Garden
Banks Block 72 lease in May 1996.  During the three months ended June 30, 1996,
the Partnership sold 3,378 MMcf of gas and 25,216 barrels of oil at average
prices of $2.31 per thousand cubic feet ("Mcf") and $21.57 per barrel,
respectively.  Revenue related to the Partnership's Viosca Knoll Block 817
Platform, which was placed in service during the third quarter of 1995, totaled
$0.9 million for the three months ended June 30, 1996.

Total transportation volumes for the Joint Venture Companies increased 10.4%
from the three months ended June 30, 1995 to the three months ended June 30,
1996 primarily as a result of increased throughput on the Viosca Knoll, HIOS,
UTOS and Stingray systems.  Total transportation volumes for the Gathering
Systems (Green Canyon, Tarpon, Ewing Bank and Combined Manta Ray) increased
13.8% from the three months ended June 30, 1995 to the three months ended June
30, 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 
Tarpon and Combined Manta Ray systems.

Total costs and expenses for the three months ended June 30, 1996 totaled $9.8
million as compared with $4.8 million for the three months ended June 30, 1995.
The $5.0 million increase in costs and expenses was attributable to increases
in (i) depreciation, depletion and amortization of $4.0 million, (ii) operating
expenses of $0.9 million and (iii) the Partnership's management fees and other
general and administrative expenses of $0.1 million.  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 Viosca Knoll Block 817 and
Garden Banks Block 72.  The increase in operating expenses is primarily
attributable to the operation of new pipelines, platforms and leases by the
Partnership.  The increase in the Partnership's management fees and other
general and administrative expenses primarily reflects a $0.2 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.

During the three months ended June 30, 1995, the Partnership recognized a $1.2
million gain on sale of certain oil and gas mineral leaseholds.

Interest income and other totaled $0.4 million for the three months ended June
30, 1996 as compared with $0.1 million for the three months ended June 30, 1995.
The increase in interest income is due to accrued interest of $0.3 million
related to the $7.5 million that was added to the Payout Amount in connection
with restructuring the demand charges payable to the Partnership from Tatham
Offshore.  Interest and other financing costs, net of capitalized interest, for
the three months ended June 30, 1996 totaled $26,000 as compared with $0.2
million for the three months ended June 30, 1995.  Interest and fees associated
with the Partnership Credit Facility of $3.7 million were capitalized in
conneciton with construction projects and drilling activities in progress during
the second quarter of 1996.

Net income for the three months ended June 30, 1996 totaled $9.2 million as
compared with $7.1 million for the three months ended June 30, 1995 as a result
of the items discussed above. Net income per Unit for the three months ended
June 30, 1996 totaled $0.74 per Unit as compared with $0.58 per Unit for the
three months ended June 30, 1995.





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