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>
 
5. INVESTMENTS IN UNCONSOLIDATED AFFILIATES
 
     We hold investments in various affiliates which we account for using the
equity method of accounting. Summarized financial information for these
investments are as follows:
 
                         SIX MONTHS ENDED JUNE 30, 2004
                                 (IN THOUSANDS)
 

<Table>
<Caption>
                                                       DEEPWATER     CAMERON
                                              COYOTE   GATEWAY(1)   HIGHWAY(2)   POSEIDON   TOTAL
                                              ------   ----------   ----------   --------   ------
<S>                                           <C>      <C>          <C>          <C>        <C>
END OF PERIOD OWNERSHIP INTEREST............     50%        50%         50%          36%
                                              ======    =======       =====      =======
OPERATING RESULTS DATA:
  Operating revenues........................  $3,600    $ 6,300       $  --      $18,116
  Other income..............................       2         10          84           23
  Operating expenses........................    (296)       (63)         --       (2,602)
  Depreciation..............................    (721)    (1,962)         --       (4,930)
  Other expenses............................    (341)    (1,485)       (382)      (1,827)
                                              ------    -------       -----      -------
  Net income................................  $2,244    $ 2,800       $(298)     $ 8,780
                                              ======    =======       =====      =======
OUR SHARE:
  Allocated income (loss)...................  $1,122    $ 1,400       $(149)     $ 3,161
  Adjustments(3)............................      (4)      (191)         92           65
                                              ------    -------       -----      -------
  Earnings (loss) from unconsolidated
     affiliates.............................  $1,118    $ 1,209       $ (57)     $ 3,226    $5,466(4)
                                              ======    =======       =====      =======    ======
  Allocated distributions...................  $1,450    $    --       $  --      $    --    $1,450
                                              ======    =======       =====      =======    ======
</Table>

 
                         SIX MONTHS ENDED JUNE 30, 2003
                                 (IN THOUSANDS)
 

<Table>
<Caption>
                                                                  DEEPWATER
                                                         COYOTE   GATEWAY(1)   POSEIDON   TOTAL
                                                         ------   ----------   --------   ------
<S>                                                      <C>      <C>          <C>        <C>
END OF PERIOD OWNERSHIP INTEREST.......................     50%       50%          36%
                                                         ======     =====      =======
OPERATING RESULTS DATA:
  Operating revenues...................................  $3,825     $  --      $23,207
  Other income.........................................       4        23           35
  Operating expenses...................................    (242)       --       (2,160)
  Depreciation.........................................    (690)       --       (4,169)
  Other expenses.......................................    (387)       (5)      (2,835)
                                                         ------     -----      -------
  Net income...........................................  $2,510     $  18      $14,078
                                                         ======     =====      =======
OUR SHARE:
  Allocated income.....................................  $1,255     $   9      $ 5,068
  Adjustments(3).......................................      --        (9)         (20)
                                                         ------     -----      -------
  Earnings from unconsolidated affiliate...............  $1,255     $  --      $ 5,048    $6,303
                                                         ======     =====      =======    ======
  Allocated distributions..............................  $1,750     $  --      $ 6,480    $8,230
                                                         ======     =====      =======    ======
</Table>

 
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(1) The Marco Polo TLP, which is owned by Deepwater Gateway L.L.C., was
    installed in the first quarter of 2004. First production and thus volumetric
    payments started in July 2004. In April 2004, Deepwater Gateway began
    receiving monthly demand payments of $2.1 million. Prior to the TLP
    installation, Deepwater Gateway was a development stage company; therefore
    there were no operating revenues or operating expenses. However, it did
    incur organizational expenses and received interest income.
 
(2) Cameron Highway Oil Pipeline Company is a development stage company;
    therefore there are no operating revenues or operating expenses. Since its
    formation in June 2003, it has incurred organizational expenses and received
    interest income.
 
(3) We recorded adjustments primarily for differences from estimated earnings
    reported in our Quarterly Report on Form 10-Q and actual earnings reported
    in the unaudited financial statements of our unconsolidated affiliates.
 
(4) Total earnings from unconsolidated affiliates includes a $30 thousand
    reduction associated with the true-up of the gain on the sale of our
    interest in Copper Eagle.
 
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