Enterprise Products Partners L.P.

SEC Filings

10-Q
GULFTERRA ENERGY PARTNERS L P filed this Form 10-Q on 08/09/2004
Entire Document
 
<PAGE>
 
  Six Months Ended June 30, 2004 Compared With Six Months Ended June 30, 2003
 
     For the six months ended June 30, 2004, margin was $2.9 million higher than
the same period in 2003, of which $1.5 million was due to an increase in
interruptible storage services at our leased Wilson storage facility. In
addition, there was a $1.6 million increase in margin at our Hattiesburg gas
storage facility attributable to lower revaluation expense of our natural gas
imbalances due to a lower imbalance position in 2004.
 
     Operating expenses excluding depreciation, depletion and amortization for
the six months ended June 30, 2004, were $1.2 million higher than the same
period in 2003 primarily due to an increase in allocated administrative costs,
including merger-related costs and directors and officers liability insurance.
 
PLATFORM SERVICES
 

<Table>
<Caption>
                                                         QUARTER ENDED       SIX MONTHS ENDED
                                                           JUNE 30,              JUNE 30,
                                                       -----------------    ------------------
                                                        2004       2003      2004       2003
                                                       -------    ------    -------    -------
                                                         (IN THOUSANDS, EXCEPT FOR VOLUMES)
<S>                                                    <C>        <C>       <C>        <C>
Platform services revenue from external customers....  $ 6,290    $6,101    $12,932    $10,483
Platform services intersegment revenue...............      579       758      1,164      1,404
Operating expenses excluding depreciation, depletion,
  and amortization...................................   (1,052)     (582)    (1,915)    (1,375)
Other income and cash distributions from
  unconsolidated
  affiliates in excess of earnings(1)................       (1)       --         (2)        --
                                                       -------    ------    -------    -------
Performance cash flows...............................  $ 5,816    $6,277    $12,179    $10,512
                                                       =======    ======    =======    =======
Natural gas platform volumes (MDth/d)
  East Cameron 373...................................      111       104        111        112
  Garden Banks 72....................................        5        20          5         23
  Viosca Knoll 817...................................        5         5          5          6
  Falcon Nest platform(2)............................      284       190        274        110
                                                       -------    ------    -------    -------
     Total natural gas platform volumes..............      405       319        395        251
                                                       =======    ======    =======    =======
Oil platform volumes (Bbl/d)
  East Cameron 373...................................      674       920        993        871
  Garden Banks 72....................................      706     1,102        766      1,067
  Viosca Knoll 817...................................    2,108     2,020      2,121      2,005
  Falcon Nest platform(2)............................      936       720        872        422
                                                       -------    ------    -------    -------
     Total oil platform volumes......................    4,424     4,762      4,752      4,365
                                                       =======    ======    =======    =======
</Table>

 
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(1) Earnings from unconsolidated affiliates for the quarter and six months ended
    June 30, 2004, were $1,295 thousand and $1,209 thousand.
 
(2) The Falcon Nest platform was placed in service in March 2003.
 
     Our platform services segment generally earns revenue through demand fees
(regular payments made by customers using our platform services regardless of
volumes) and commodity charges (volume-based payments made by customers).
Contracts for platform services often include both demand fees and commodity
charges, but demand fees generally expire after a fixed period of time.
 
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