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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               LEVIATHAN PIPELINE PARTNERS, L.P. AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (continued)
                                  (unaudited)

In July 1996, Marathon Oil Company ("Marathon") joined POPCO by contributing
its interest in 58 miles of nearby crude oil pipelines and dedicating its
portion of oil reserves attached to such pipelines to the Poseidon Oil Pipeline
for transportation.  As a result, each of the Partnership and Texaco Trading
now owns a 36% interest in the joint venture and Marathon owns the remaining 28%
interest.

NOTE 4 -- EQUITY INVESTMENTS:

The Partnership owns interests of 50% in Stingray Pipeline Company
("Stingray"), 40% in High Island Offshore System ("HIOS"), 33 1/3% in U-T
Offshore System ("UTOS"), 50% in Viosca Knoll Gathering System ("Viosca
Knoll"), 50% in West Cameron Dehydration Company ("West Cameron Dehy") and 50%
in POPCO (through June 30,1996).  The summarized financial information for
these investments which are accounted for using the equity method is as
follows:

                    SUMMARIZED HISTORICAL OPERATING RESULTS
                                 (In thousands)


<TABLE>
<CAPTION>
                         For the six months ended June 30, 1996        |     For the six months ended June 30, 1995
                     ----------------------------------------------    |  --------------------------------------------
                                          Viosca                       |                                Viosca
                      Stingray   HIOS     Knoll    Other      Total    |  Stingray    HIOS      UTOS    Knoll    Total
<S>                   <C>       <C>      <C>       <C>        <C>      |   <C>      <C>       <C>      <C>      <C>
Operating revenue     $11,882   $22,110  $ 6,055                       |   $11,297  $ 18,546  $ 2,919  $ 3,288
Other income              700        84        -                       |       653       317       26       -
Operating expenses     (6,459)   (8,631)     (42)                      |    (6,497)  (10,530)  (1,620)    (230)
Depreciation           (3,466)   (2,387)  (1,109)                      |    (4,577)   (2,441)    (365)  (1,146)
Other expenses           (886)      (40)      -                        |      (567)     (464)     (31)      -
                      -------   -------  -------                       |   -------   -------   ------   -------
Net earnings            1,771    11,136    4,904                       |       309     5,428      929    1,912
Effective ownership                                                    |
  percentage              50%       40%      50%                       |       50%       40%    33.3%      50%
                      -------   -------  -------                       |   -------   -------   ------   -------
                          885     4,454    2,452                       |       155     2,171      310      956
Adjustments:                                                           |
- - Depreciation (a)        498       455       -                        |     1,043       552       42       -
- - Contract                                                             |
    amortization (a)     (170)      (53)      -                        |        -       (135)       -        -
- - Rate refund reserve       -       (52)      -                        |        -      3,200      333
- - Other                   (24)      (44)      -                        |        -          -        -        -
                      -------   -------  -------                       |   -------   -------   ------   -------               
                                                                       |
Equity in earnings of                                                  |
  partnerships        $ 1,189   $ 4,760  $ 2,452    $ 403(c)  $ 8,804  |   $ 1,198   $ 5,788   $  685   $   956  $8,627
                      =======   =======  =======   ======     =======  |   =======   =======   ======   =======  ======
                                                                       |
Distributions from                                                     |
  partnerships (b)    $ 1,423   $ 5,800  $ 2,700   $2,075(d)  $11,998  |   $ 3,150   $ 4,400   $  333   $ 1,425  $9,308
                      =======   =======  =======   ======     =======  |   =======   =======   ======   =======  ======
</TABLE>


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  (a) Adjustments result from purchase price adjustments made in accordance
      with Accounting Principles Board No. 16. "Business Combinations".
  (b) Future distributions from partnerships could be restricted by the terms
      of certain partnership credit agreements.
  (c) Includes the Partnership's share of equity earnings (losses) of West
      Cameron Dehy, UTOS and POPCO of $382,000, $121,000 and ($100,000),
      respectively.
  (d) Includes the Partnership's share of distributions from West Cameron Dehy,
      UTOS and POPCO of $275,000, $400,000 and $1,400,000, respectively.




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