The Partnership anticipates that capital expenditures in connection with the
maintenance and enhancement of the service capabilities of the Ewing Bank and
Green Canyon systems will aggregate approximately $0.5 million per year
although the actual level of these capital expenditures may change from time to
time for many reasons, some of which may be beyond the control of the
Partnership. Total capital expenditures and equity investments for 1995 were
$173.6 million. The Partnership anticipates that its total capital
expenditures for 1996 will relate to continuing construction and drilling
activities. The Partnership anticipates funding such costs primarily with
available cash flow and borrowings under the Partnership Credit Facility.
Capital expenditures of POPCO are anticipated to be funded by borrowings under
the POPCO Credit Facility.
Interest and other financing costs, net of capitalized interest, related to the
Partnership Credit Facility totaled $0.6 million for the six months ended June
30, 1996. Such amount included commitment fees and amortization of debt issue
costs of $0.2 million. During the six months ended June 30, 1996, the
Partnership capitalized $6.0 million of interest costs in connection with
construction projects and drilling activities in progress during the period.