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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1995.  Interest and fees associated with the Partnership's credit facilities of
$11.2 million were capitalized in connection with construction projects and
drilling activities in progress during the nine months ended September 30,
1996.

Net income for the nine months ended September 30, 1996 totaled $30.1 million
as compared with $18.3 million for the nine months ended September 30, 1995 as
a result of the items discussed above. Net income per Unit for the nine months
ended September 30, 1996 totaled $2.44 per Unit as compared with $1.49 per Unit
for the nine months ended September 30, 1995.

Liquidity and Capital Resources

Sources of Cash.  The Partnership intends to satisfy its capital requirements
and other working capital needs primarily from cash on hand, cash from
continuing operations and borrowings under the Partnership Credit Facility.
Net cash provided by operating activities for the nine months ended September
30, 1996 totaled $30.6 million.  At September 30, 1996, the Partnership had
cash and cash equivalents of $9.2 million.

Cash from continuing operations is derived from (i) payments for transporting
gas through the 100% owned pipelines, (ii) cash distributions from the
Stingray, HIOS, UTOS and Viosca Knoll partnerships and from POPCO and West
Cameron Dehy, (iii) platform access and processing fees and (iv) the sale of
oil and gas attributable to the Partnership's interest in certain producing
wells.

Stingray, HIOS, UTOS and Viosca Knoll are partnerships and POPCO and West
Cameron Dehy are limited liability companies in which the Partnership owns an
interest.  The Partnership's cash flows from operations will be affected by the
ability of such entities to make distributions.  Distributions from such
entities are also subject to the discretion of their respective management
committees.  Further, each of Stingray and POPCO is party to a credit agreement
under which it has outstanding obligations that may restrict the payments of
distributions to its owners.  In December 1995, Stingray amended an existing
term loan agreement to provide for aggregate outstanding borrowings of up to
$29.0 million in principal amount.  The agreement requires the payment of
principal by Stingray of $1.45 million per quarter.  As of September 30, 1996,
interest accrued at the rate of approximately 6.4% per annum and is payable
quarterly.  As of September 30, 1996, Stingray had $24.65 million outstanding
under its term loan agreement.

In April 1996, POPCO entered into a revolving credit facility (the "POPCO
Credit Facility") with a group of commercial banks to provide up to $150.0
million for the construction of the second phase of the Poseidon Oil Pipeline
and for other working capital needs of POPCO.  As of September 30, 1996, POPCO
had $77.5 million outstanding under the POPCO Credit Facility bearing interest
at 6.7% per annum. POPCO's ability to borrow money under the facility is
subject to certain customary terms and conditions, including borrowing base
limitations.  The POPCO Credit Facility is secured by a substantial portion of
POPCO's assets and matures on April 30, 2001.

Flextrend Development has initiated production from the each of the Assigned
Properties.  As discussed above, the Viosca Knoll Block 817 project is
currently producing a total of approximately 100 MMcf of gas per day. Flextrend
Development owns a 75% working interest in this property, subject to certain
reversionary rights. The Garden Banks Block 72 lease, which began producing in
May 1996, is currently producing an average of 4,100 barrels of oil and 14.5
MMcf of gas per day.  The Garden Banks Block 117 #1 well, which began producing
in July 1996, is currently producing an average of 2,100 barrels of oil, 3.5
MMcf of gas and 3,100 barrels of water per day.  Flextrend Development owns a
50% working interest in each of these properties, subject to certain
reversionary rights.





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