Enterprise Products Partners L.P.

SEC Filings

GULFTERRA ENERGY PARTNERS L P filed this Form 10-Q on 08/09/2004
Entire Document
     The counterparties for our San Juan hedging activities are J. Aron and
Company, an affiliate of Goldman Sachs, and UBS Warburg. We do not require
collateral and do not anticipate non-performance by these counterparties. The
counterparty for our NGL hedging activities is J. Aron and Company, an affiliate
of Goldman Sachs, and we do not require collateral or anticipate non-performance
by this counterparty.
     Each of our segments are business units that offer different services and
products that are managed separately since each segment requires different
technology and marketing strategies. We have segregated our business activities
into four distinct operating segments:
     - Natural gas pipelines and plants;
     - Oil and NGL logistics;
     - Natural gas storage; and
     - Platform services.
     We use performance cash flows (which we formerly referred to as EBITDA) to
evaluate the performance of our segments, determine how resources will be
allocated and develop strategic plans. We define performance cash flows as
earnings before interest, depreciation and amortization and other adjustments.
Historically our lenders and equity investors have viewed our performance cash
flows measure as an indication of our ability to generate sufficient cash to
meet debt obligations or to pay distributions. We believe that there has been a
shift in investors' evaluation regarding investments in MLPs and they now put as
much focus on the performance of an MLP investment as they do its ability to pay
distributions. For that reason, we disclose performance cash flows as a measure
of our segment performance.
     We believe performance cash flows is also useful to our investors because
it allows them to evaluate the effectiveness of our business segments from an
operational perspective, exclusive of the costs to finance those activities and
depreciation and amortization, neither of which are directly relevant to the
efficiency of those operations. This measurement may not be comparable to
measurements used by other companies and should not be used as a substitute for
net income or other performance measures.
     The following are results as of and for the periods ended June 30:

                                  NATURAL GAS     OIL AND     NATURAL
                                 PIPELINES AND      NGL         GAS      PLATFORM   NON-SEGMENT
                                    PLANTS       LOGISTICS    STORAGE    SERVICES   ACTIVITY(1)     TOTAL
                                 -------------   ----------   --------   --------   -----------   ----------
                                                               (IN THOUSANDS)
<S>                              <C>             <C>          <C>        <C>        <C>           <C>
Revenue from external
  customers....................   $  182,990      $ 19,817    $ 11,743   $  6,290     $ 4,378     $  225,218
Intersegment revenue...........           31            --          --        579        (610)            --
Depreciation, depletion and
  amortization.................       18,163         2,513       2,880      1,395       1,129         26,080
Earnings from unconsolidated
  affiliates...................          584         1,379          --      1,295          --          3,258
Performance cash flows.........       83,904        13,252       7,721      5,816         N/A            N/A
Assets.........................    2,344,760       464,228     317,211    175,161      84,721      3,386,081