Enterprise Products Partners L.P.

SEC Filings

10-Q
GULFTERRA ENERGY PARTNERS L P filed this Form 10-Q on 05/14/1998
Entire Document
 
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             LEVIATHAN GAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
                                   (UNAUDITED)

NOTE 3 - EQUITY INVESTMENTS:

The Partnership owns interests of 50% in Viosca Knoll Gathering Company ("Viosca
Knoll"), 36% in Poseidon Oil Pipeline Company, L.L.C. ("POPCO"), 25.7% in
Nautilus Pipeline Company, L.L.C. ("Nautilus"), 25.7% in Manta Ray Offshore
Gathering Company, L.L.C. ("Manta Ray Offshore"), 50% in Stingray Pipeline
Company ("Stingray"), 40% in High Island Offshore System ("HIOS"), 33 1/3% in
U-T Offshore System ("UTOS") and 50% in West Cameron Dehydration Company, L.L.C.
("West Cameron Dehy"). The summarized financial information for these
investments, which are accounted for using the equity method, is as follows:



<TABLE>
<CAPTION>
                                             SUMMARIZED HISTORICAL OPERATING RESULTS
                                                         (In thousands)

                                                             Three Months Ended March 31, 1998
                            ----------------------------------------------------------------------------------------------------
                                                              West                                                               
                                      Viosca                 Cameron                             Manta Ray                       
                             HIOS     Knoll       Stingray    Dehy        POPCO         UTOS     Offshore       Nautilus    Total
<S>                       <C>         <C>          <C>         <C>        <C>          <C>         <C>         <C>          <C>
Operating revenue         $ 10,928    $ 7,027      $ 5,519     $ 565      $ 8,097      $1,091      $1,533      $   638           
Other income                    55         11          224         1           75          25         118           10           
Operating expenses          (4,047)      (651)      (3,439)      (46)        (888)       (601)       (305)        (253)          
Depreciation                (1,192)      (930)      (1,808)       (4)      (2,196)       (140)     (1,031)      (1,411)          
Other expenses                --         (929)        (305)       --       (2,198)         --          --          (12)          
                          --------    -------      -------     -----      -------      ------      ------      -------
Net earnings (loss)          5,744      4,528          191       516        2,890         375         315       (1,028)          
Ownership percentage            40%        50%          50%       50%          36%       33.3%       25.7%        25.7%          
                          --------    -------      -------     -----      -------      ------      ------      -------
                             2,298      2,264           96       258        1,040         125          81         (264)          
Adjustments:                                                                                                                     
- - Depreciation(a)              190       --            234       --          --             8         (87)          --           
- - Contract amortization(a)     (26)      --            (95)      --          --            --          --           --           
- - Other                        (41)      --            (12)      --           (30)        (10)         --         (710)(c)       
                          --------    -------      -------     -----      -------      ------      ------      -------
Equity in earnings (loss) $  2,421    $ 2,264      $   223     $ 258      $ 1,010      $  123      $   (6)     $  (974)     $5,319
                          ========    =======      =======     =====      =======      ======      ======      =======      ======
Distributions(b)          $  2,400    $ 2,150      $ 1,000     $ 275      $  --        $   --      $  500      $    --      $6,325
                          ========    =======      =======     =====      =======      ======      ======      =======      ======
</TABLE>


- ------------
   (a) Adjustments result from purchase price adjustments made in accordance
       with Accounting Principles Board Opinion No. 16, "Business Combinations."
   (b) Future distributions could be restricted by the terms of the equity
       investees' respective credit agreements.
   (c) Primarily relates to a revision of the allowance for funds used during
       construction ("AFUDC") which represents the estimated costs, during the
       construction period, of funds used for construction purposes.



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