Enterprise Products Partners L.P.

SEC Filings

10-Q
GULFTERRA ENERGY PARTNERS L P filed this Form 10-Q on 11/12/1996
Entire Document
 
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months ended September 30, 1996 as compared with $0.4 million for the three
months ended September 30, 1995.

Total gas transportation volumes for the Joint Venture Companies increased
19.8% from the three months ended September 30, 1995 to the three months ended
September 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 Manta Ray) increased
30.4% from the three months ended September 30, 1995 to the three months ended
September 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 Manta Ray systems.

Total costs and expenses for the three months ended September 30, 1996 totaled
$13.4 million as compared with $5.0 million for the three months ended
September 30, 1995.  The $8.4 million increase in costs and expenses was
attributable to increases in (i) depreciation, depletion and amortization of
$6.8 million, (ii) operating expenses of $1.3 million and (iii) the
Partnership's management fees and other general and administrative expenses of
$0.3 million.  The increase in depreciation, depletion and amortization results
primarily from depreciation and depletion on the oil and gas wells and
facilities located on Viosca Knoll Block 817, Garden Banks Block 72 and the
Garden Banks Block 117 leases, depreciation on additional platforms and
facilities constructed by the Partnership and accelerated depreciation on the
Ewing Bank flow lines.  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.

Interest income and other totaled $0.5 million for the three months ended
September 30, 1996 as compared with $0.2 million for the three months ended
September 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 September 30, 1996 totaled $1.3 million as
compared with $0.2 million for the three months ended September 30, 1995.
Interest and fees associated with the Partnership Credit Facility of $2.6
million were capitalized in connection with construction projects and drilling
activities in progress during the third quarter of 1996.

Net income for the three months ended September 30, 1996 totaled $10.0 million
as compared with $7.3 million for the three months ended September 30, 1995 as
a result of the items discussed above. Net income per Unit for the three months
ended September 30, 1996 totaled $0.81 per Unit as compared with $0.59 per Unit
for the three months ended September 30, 1995.

Nine Months Ended September 30, 1996 Compared with Nine Months Ended September
30, 1995

Total revenue for the nine months ended September 30, 1996 was $62.4 million as
compared with $31.5 million for the nine months ended September 30, 1995.
Revenue from transportation services totaled $15.2 million for the nine months
ended September 30, 1996 as compared with $15.0 million for the nine months
ended September 30, 1995. The increase in transportation revenue of $0.2
million was comprised primarily of (i) a $1.9 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 Ewing Bank and Tarpon 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





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