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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SIX MONTHS ENDED JUNE 30, 1996 COMPARED WITH SIX MONTHS ENDED JUNE 30, 1995

Total revenue for the six months ended June 30, 1996 was $38.2 million as
compared with $19.3 million for the six months ended June 30, 1995.  Revenue
from transportation services totaled $9.8 million for the six months ended June
30, 1996 as compared with $10.3 million for the six months ended June 30, 1995.
The decrease in transportation revenue of $0.5 million was comprised primarily
of (i) a $1.2 million increase from the Green Canyon system attributable to the
connection of a new gas field located in Green Canyon Block 136 to the system
and (ii) a decrease of $1.7 million attributable to decreases in throughput on
the Combined Manta Ray, Tarpon and Ewing Bank systems due to normal production
decline from the wells attached to such systems and the restructuring of the
demand charges payable to the Partnership from Tatham Offshore.  Revenue from
the Partnership's equity interest in the Joint Venture Companies totaled $8.8
million for the six months ended June 30, 1996 as compared with $8.6 million
for the six months ended June 30, 1995.  The increase of $0.2 million in
revenue from the Partnership's equity interest in the Joint Venture Companies
primarily reflects increases of (i) $1.5 million from Viosca Knoll as a result
of increased throughput on the Viosca Knoll Gathering System and (ii) $0.4
million from West Cameron Dehy, which was placed in service in November 1995
offset by decreases of $1.7 million related primarily to HIOS and UTOS.  Revenue
from oil and gas sales totaled $17.9 million for the six months ended June 30,
1996 as compared with $0.4 million for the six months ended June 30, 1995.  The
increase in oil and gas sales of $17.5 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 six
months ended June 30, 1996, the Partnership sold 6,376 MMcf of gas and 25,216
barrels of oil at average prices of $2.64 per 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
$1.7 million for the six months ended June 30, 1996.

Total transportation volumes for the Joint Venture Companies increased 9.9%
from the six months ended June 30, 1995 to the six months ended June 30, 1996
primarily as a result of increased throughput on the Viosca Knoll, HIOS and
Stingray systems.  Total transportation volumes for the Gathering Systems
increased 8.9% from the six months ended June 30, 1995 to the six 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
Ewing Bank, Tarpon and Combined Manta Ray systems.

Total costs and expenses for the six months ended June 30, 1996 totaled $18.4
million as compared with $9.6 million for the six months ended June 30, 1995.
The $8.8 million increase in costs and expenses was primarily attributable to
an increase in depreciation, depletion and amortization of $7.3 million and
operating expenses of $1.7 million, partially offset by a $0.2 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 and Garden Banks Block 72
leases. 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 $1.0 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 offset
by a $1.3 million reimbursement from POPCO as a result of the Partnership's
management of the initial phase of the construction of the Poseidon Oil
Pipeline.

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





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