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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             LEVIATHAN GAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES

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

downstream from Ship Shoal Block 207 connecting to the Exxon Company USA
("Exxon") operated Garden City gas processing plant. Upstream of the Ship Shoal
207 terminal, the Manta Ray System will be extended into a broader gathering
system that would serve shelf and deepwater production around Ewing Bank Block
873 to the east and Green Canyon Block 65 to the west.  Marathon and Shell have
significant deep water acreage positions in the area, including the recently
announced Troika field (Green Canyon Block 244), and would provide the majority
of the capital funding for the new construction. The Partnership would provide
some funding along with the contribution of Manta Ray System. The consummation
of this joint venture is subject to the negotiation and execution of definitive
documents.

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 36%
in POPCO.  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 nine months ended September 30, 1996        For the nine months ended September 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     $17,895   $34,202   $9,344                         $16,856    $27,477    $3,762      $5,189
Other income              958       122       --                           1,021        497        42          --
Operating expenses     (9,704)  (11,936)    (329)                         (9,965)   (14,954)   (2,020)       (121)
Depreciation           (5,258)   (3,581)  (1,683)                         (6,875)    (3,676)     (540)     (1,685)
Other expenses         (1,293)      (40)      --                            (897)      (832)      (52)        (93)
                      -------   -------   ------                         -------    -------     -----      ------
Net earnings            2,598    18,767    7,332                             140      8,512     1,184       3,290
Effective ownership
   percentage              50%       40%      50%                             50%        40%     33.3%         50%
                      -------   -------   ------                         -------    -------     -----      ------
                        1,299     7,507    3,666                              70      3,405       395       1,645
Adjustments:
- - Depreciation (a)        776       683       --                           1,420        777        55          --
- - Contract
   amortization (a)      (255)      (79)      --                              --       (167)       --          --
- - Rate refund reserve      --      (220)      --                              --      7,762       218
- - Other                   (36)      (63)      --                              --         --        --          --
                      -------   -------   ------                         -------    -------    ------      ------
Equity in earnings    $ 1,784   $ 7,828   $3,666   $1,313(c)  $14,591    $ 1,490    $11,777    $  668      $1,645    $15,580
                      =======   =======   ======   ======     =======    =======    =======    ======      ======    =======
Distributions (b)     $ 1,423   $ 8,600   $4,350   $4,875(d)  $19,248    $ 3,750    $10,400    $  667      $2,050    $16,867
                      =======   =======   ======   ======     =======    =======    =======    ======      ======    =======

</TABLE>


(a) Adjustments result from purchase price adjustments made in accordance
    with Accounting Principles Board No. 16. "Business Combinations".
(b) Future distributions could be restricted by the terms of the equity
    investees' respective credit agreements.
(c) Includes the Partnership's share of equity earnings of West Cameron Dehy,
    UTOS and POPCO of $564,000, $190,000 and $559,000, respectively.
(d) Includes the Partnership's share of distributions from West Cameron Dehy,
    UTOS and POPCO of $475,000, $400,000 and $4,000,000, respectively.

Note 5 - Credit Facility:

On October 12, 1995, Flextrend Development and a syndicate of commercial
lenders entered into the Flextrend Credit Facility.  The Flextrend Credit
Facility provided for borrowings of up to $32.0 million at any time prior to
March 31, 1996.  As discussed below, all borrowings outstanding under the
Flextrend Credit Facility were repaid on March 26, 1996 from proceeds obtained
under the Partnership Credit Facility, as amended.  For the nine months ended
September 30, 1996, interest and amortization of debt





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