Enterprise Products Partners L.P.

SEC Filings

10-Q
TEPPCO PARTNERS LP filed this Form 10-Q on 08/07/1997
Entire Document
 
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                             TEPPCO PARTNERS, L.P.

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
                                  (UNAUDITED)


LONG-TERM INVESTMENTS

     At June 30, 1997, the Partnership had $8.7 million invested in
investment-grade medium-term corporate debt securities, which have varying
maturities from 1999 through 2001. These securities are classified as
held-to-maturity securities and are stated at amortized cost. At June 30, 1997,
the aggregate fair value and unrealized gain for these securities was $8.8
million and $0.1 million, respectively. Such investments included a $0.9
million investment in Duke Power Company corporate notes as of June 30, 1997.

NOTE 4. FIRST MORTGAGE NOTES

     In connection with its formation, TE Products Pipeline Company, Limited
Partnership issued 9.60% Series A First Mortgage Notes, due 2000, and 10.20%
Series B First Mortgage Notes, due 2010 (collectively the "Notes"). The
Notes, which are secured by a mortgage on substantially all property, plant and
equipment of the Partnership, have mandatory annual prepayments at par through
March 7, 2010. Interest is payable semiannually on each March 7 and September 7
until retirement of the Notes. On March 7, 1997, the Partnership paid $13.0
million for current maturities due on the Notes. At June 30, 1997, the current
maturities of the Notes were $17.0 million, which are payable on March 6, 1998.

     The agreements relating to the Notes contain certain covenant
restrictions, including limitations on cash distributions and on the amount of
future indebtedness, none of which is expected to have a material adverse
effect on the Partnership's operations.

NOTE 5. INVENTORIES

     Inventories are carried at the lower of cost (based on weighted average
cost method) or market. The major components of inventories were as follows (in
thousands):




<TABLE>
<CAPTION>
                                                        JUNE 30,      DECEMBER 31,
                                                         1997           1996
                                                      -----------    -----------
<S>                                                   <C>            <C>        
Gasolines ........................................    $     1,545    $     3,232
Propane ..........................................          5,698          6,550
Butanes ..........................................          4,354          4,023
Fuel oils ........................................            402             --
Other products ...................................          1,633          2,021
Materials and supplies ...........................          4,047          3,088
                                                      -----------    -----------
Total ............................................    $    17,679    $    18,914
                                                      ===========    ===========
</TABLE>


     The costs of inventories were lower than market at June 30, 1997, and
December 31, 1996.

NOTE 6. CASH DISTRIBUTIONS

     The Partnership makes quarterly cash distributions of all of its Available
Cash, generally defined as consolidated cash receipts less consolidated cash
disbursements and cash reserves established by the general partner in its sole
discretion or as required by the terms of the Notes.





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