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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Tatham Offshore.  Revenue from the Partnership's equity interest in the Joint
Venture Companies totaled $14.6 million for the nine months ended September 30,
1996 as compared with $15.6 million for the nine months ended September 30,
1995.  The decrease of $1.0 million in revenue from the Partnership's equity
interest in the Joint Venture Companies primarily reflects increases of (i)
$2.3 million from Viosca Knoll and Stingray as a result of increased throughput
on the systems, (ii) $0.6 million from POPCO, which was placed in service in
April 1996, and (iii) $0.6 million from West Cameron Dehy, which was placed in
service in November 1995 offset by decreases of $4.5 million related primarily
to HIOS and UTOS.  Revenue from oil and gas sales totaled $30.0 million for the
nine months ended September 30, 1996 as compared with $0.6 million for the nine
months ended September 30, 1995.  The increase in oil and gas sales of $29.4
million is primarily attributable to the initiation of production from the
Partnership's Viosca Knoll Block 817 lease in December 1995, the Garden Banks
Block 72 lease in May 1996 and the Garden Banks Block 117 lease in July 1996.
During the nine months ended September 30, 1996, the Partnership sold 10,541
MMcf of gas and 193,982 barrels of oil at average prices of $2.36 per Mcf and
$22.16 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 $2.6 million for the nine months ended September 30, 1996 as
compared with $0.4 million for the nine months ended September 30, 1995.

Total gas transportation volumes for the Joint Venture Companies increased
13.1% from the nine months ended September 30, 1995 to the nine months ended
September 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 15.7% from the nine months ended September 30, 1995
to the nine 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 Ewing Bank, Tarpon and Manta Ray systems.

Total costs and expenses for the nine months ended September 30, 1996 totaled
$31.8 million as compared with $14.6 million for the nine months ended
September 30, 1995.  The $17.2 million increase in costs and expenses was
primarily attributable to increases in (i) depreciation, depletion and
amortization of $14.2 million, (ii) operating expenses of $2.9 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 depreciation and depletion on the oil and
gas wells and facilities located on the 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 $1.4 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 nine months ended September 30, 1995, the Partnership recognized a
$1.2 million gain on sale of certain oil and gas mineral leaseholds.

Interest income and other totaled $1.2 million for the nine months ended
September 30, 1996 as compared with $0.5 million for the nine months ended
September 30, 1995.  The increase in interest income is primarily due to
accrued interest of $0.8 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 nine months ended September 30, 1996
totaled $1.9 million as compared with $0.5 million for the nine months ended
September 30,





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