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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

☑  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR
☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___  to  ___.

Commission file number:  1-14323

ENTERPRISE PRODUCTS PARTNERS L.P.
(Exact Name of Registrant as Specified in Its Charter)

Delaware
  
 
76-0568219
(State or Other Jurisdiction of Incorporation or Organization)
  
 
(I.R.S. Employer Identification No.)
 
1100 Louisiana Street, 10th Floor
Houston, Texas 77002
    (Address of Principal Executive Offices, including Zip Code)
(713) 381-6500
(Registrant’s Telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of Each Class
Trading Symbol(s)
Name of Each Exchange On Which Registered
Common Units
EPD
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ☑  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☑   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☑
Accelerated filer ☐
Non-accelerated filer   ☐
Smaller reporting company ☐
Emerging growth company   ☐
  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes ☐   No ☑ 

There were 2,174,508,951 common units of Enterprise Products Partners L.P. outstanding at the close of business on April 28, 2023. 

Table of Contents

ENTERPRISE PRODUCTS PARTNERS L.P.
TABLE OF CONTENTS

 
 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  

1

Table of Contents

PART I.  FINANCIAL INFORMATION.

ITEM 1.  FINANCIAL STATEMENTS.

ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)

   
March 31,
2023
    
December 31,
2022
  
ASSETS
            
Current assets:
            
Cash and cash equivalents
  
$
76
    
$
76
  
Restricted cash
    
200
      
130
  
Accounts receivable – trade, net of allowance for credit losses
of $53 at March 31, 2023 and $54 at December 31, 2022
    
6,630
      
6,964
  
Accounts receivable – related parties
    
7
      
11
  
Inventories (see Note 3)
    
2,195
      
2,554
  
Derivative assets (see Note 13)
    
195
      
469
  
Prepaid and other current assets
    
384
      
394
  
Total current assets
    
9,687
      
10,598
  
Property, plant and equipment, net (see Note 4)
    
44,597
      
44,401
  
Investments in unconsolidated affiliates (see Note 5)
    
2,338
      
2,352
  
Intangible assets, net (see Note 6)
    
3,919
      
3,965
  
Goodwill (see Note 6)
    
5,608
      
5,608
  
Other assets
    
1,176
      
1,184
  
Total assets
  
$
67,325
    
$
68,108
  
 
                
LIABILITIES AND EQUITY
                
Current liabilities:
                
Current maturities of debt (see Note 7)
  
$
1,149
    
$
1,744
  
Accounts payable – trade
    
750
      
743
  
Accounts payable – related parties
    
63
      
232
  
Accrued product payables
    
7,411
      
7,988
  
Accrued interest
    
239
      
426
  
Derivative liabilities (see Note 13)
    
274
      
354
  
Other current liabilities
    
524
      
778
  
Total current liabilities
    
10,410
      
12,265
  
Long-term debt (see Note 7)
    
27,439
      
26,551
  
Deferred tax liabilities (see Note 15)
    
603
      
600
  
Other long-term liabilities
    
965
      
941
  
Commitments and contingent liabilities (see Note 16)
    
     
 
Redeemable preferred limited partner interests: (see Note 8)
                
    Series A cumulative convertible preferred units (“preferred units”)
        (50,412 units outstanding at March 31, 2023 and December 31, 2022)
    
49
      
49
  
Equity: (see Note 8)
                
Partners’ equity:
                
Common limited partner interests (2,174,508,951 units issued and outstanding at
     March 31, 2023, 2,170,806,347 units issued and outstanding at December 31, 2022)
    
27,843
      
27,555
  
Treasury units, at cost
    
(1,297
)
    
(1,297
)
Accumulated other comprehensive income
    
241
      
365
  
Total partners’ equity
    
26,787
      
26,623
  
Noncontrolling interests in consolidated subsidiaries
    
1,072
      
1,079
  
Total equity
    
27,859
      
27,702
  
Total liabilities, preferred units, and equity
  
$
67,325
    
$
68,108
  


See Notes to Unaudited Condensed Consolidated Financial Statements.

2

Table of Contents


ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
 (Dollars in millions, except per unit amounts)

 
  
For the Three Months
Ended March 31,
  
 
  
2023
    
2022
  
Revenues:
            
Third parties
  
$
12,431
    
$
12,992
  
Related parties
    
13
      
16
  
Total revenues (see Note 9)
    
12,444
      
13,008
  
Costs and expenses:
                
Operating costs and expenses:
                
Third party and other costs
    
10,432
      
11,082
  
Related parties
    
325
      
315
  
Total operating costs and expenses
    
10,757
      
11,397
  
General and administrative costs:
                
Third party and other costs
    
23
      
25
  
Related parties
    
34
      
37
  
Total general and administrative costs
    
57
      
62
  
Total costs and expenses (see Note 10)
    
10,814
      
11,459
  
Equity in income of unconsolidated affiliates
    
104
      
117
  
Operating income
    
1,734
      
1,666
  
Other income (expense):
                
Interest expense
    
(314
)
    
(319
)
Interest income
    
12
      
1
  
Other, net
    
–
      
2
  
Total other expense, net
    
(302
)
    
(316
)
Income before income taxes
    
1,432
      
1,350
  
Provision for income taxes (see Note 15)
    
(10
)
    
(19
)
Net income
    
1,422
      
1,331
  
Net income attributable to noncontrolling interests
    
(31
)
    
(34
)
Net income attributable to preferred units
    
(1
)
    
(1
)
Net income attributable to common unitholders
  
$
1,390
    
$
1,296
  
 
                
Earnings per unit: (see Note 11)
                
Basic and diluted earnings per common unit
  
$
0.63
    
$
0.59
  

















See Notes to Unaudited Condensed Consolidated Financial Statements.
3

Table of Contents


ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED
COMPREHENSIVE INCOME
(Dollars in millions)

 
  
For the Three Months
Ended March 31,
  
 
  
2023
    
2022
  
 
            
Net income
  
$
1,422
    
$
1,331
  
Other comprehensive income (loss):
                
Cash flow hedges: (see Note 13)
                
Commodity hedging derivative instruments:
                
Changes in fair value of cash flow hedges
    
(89
)
    
(99
)
Reclassification of losses (gains) to net income
    
(32
)
    
45
  
Interest rate hedging derivative instruments:
                
Changes in fair value of cash flow hedges
    
(5
)
    
–
  
Reclassification of losses to net income
    
2
      
8
  
Total cash flow hedges
    
(124
)
    
(46
)
Total other comprehensive loss
    
(124
)
    
(46
)
Comprehensive income
    
1,298
      
1,285
  
Comprehensive income attributable to noncontrolling interests
    
(31
)
    
(34
)
Comprehensive income attributable to preferred units
    
(1
)
    
(1
)
Comprehensive income attributable to common unitholders
  
$
1,266
    
$
1,250
  





























See Notes to Unaudited Condensed Consolidated Financial Statements.

4

Table of Contents


ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Dollars in millions)

 
  
For the Three Months
Ended March 31,
  
 
  
2023
    
2022
  
Operating activities:
            
Net income
  
$
1,422
    
$
1,331
  
Reconciliation of net income to net cash flows provided by operating activities:
                
Depreciation and accretion
    
454
      
440
  
Amortization of intangible assets
    
46
      
41
  
Amortization of major maintenance costs for reaction-based plants
    
14
      
12
  
Other amortization expense
    
53
      
58
  
Impairment of assets other than goodwill
    
13
      
14
  
Equity in income of unconsolidated affiliates
    
(104
)
    
(117
)
Distributions received from unconsolidated affiliates attributable to earnings
    
104
      
109
  
Net losses (gains) attributable to asset sales and related matters
    
(2
)
    
2
  
Deferred income tax expense
    
3
      
9
  
Change in fair market value of derivative instruments
    
3
      
42
  
Non-cash expense related to long-term operating leases (see Note 16)
    
16
      
13
  
Net effect of changes in operating accounts (see Note 17)
    
(439
)
    
191
  
Net cash flows provided by operating activities
    
1,583
      
2,145
  
Investing activities:
                
Capital expenditures
    
(653
)
    
(349
)
Cash used for business combinations, net of cash received (See Note 17)
    
–
      
(3,204
)
Distributions received from unconsolidated affiliates attributable to the return of capital
    
15
      
11
  
Proceeds from asset sales and other matters
    
2
      
11
  
Other investing activities
    
(1
)
    
(1
)
Cash used in investing activities
    
(637
)
    
(3,532
)
Financing activities:
                
Borrowings under debt agreements
    
8,321
      
13,444
  
Repayments of debt
    
(8,018
)
    
(13,464
)
Debt issuance costs
    
(17
)
    
–
  
Monetization of interest rate derivative instruments
    
21
      
–
  
Cash distributions paid to common unitholders (see Note 8)
    
(1,064
)
    
(1,012
)
Cash payments made in connection with distribution equivalent rights
    
(9
)
    
(8
)
Cash distributions paid to noncontrolling interests
    
(42
)
    
(42
)
Cash contributions from noncontrolling interests
    
4
      
2
  
Repurchase of common units under 2019 Buyback Program
    
(17
)
    
–
  
Other financing activities
    
(55
)
    
(45
)
Cash used in financing activities
    
(876
)
    
(1,125
)
Net change in cash and cash equivalents, including restricted cash
    
70
      
(2,512
)
Cash and cash equivalents, including restricted cash, at beginning of period
    
206
      
2,965
  
Cash and cash equivalents, including restricted cash, at end of period
  
$
276
    
$
453
  









See Notes to Unaudited Condensed Consolidated Financial Statements.

5

Table of Contents


ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED EQUITY
(Dollars in millions)

 
  
Partners’ Equity
              
   
Common
Limited
Partner
Interests
    
Treasury
Units
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Noncontrolling
Interests in
Consolidated
Subsidiaries
    
Total
  
Balance, December 31, 2022
  
$
27,555
    
$
(1,297
)
  
$
365
    
$
1,079
    
$
27,702
  
   Net income
    
1,390
      
–
      
–
      
31
      
1,421
  
   Cash distributions paid to common unitholders
    
(1,064
)
    
–
      
–
      
–
      
(1,064
)
   Cash payments made in connection with distribution equivalent rights
    
(9
)
    
–
      
–
      
–
      
(9
)
   Cash distributions paid to noncontrolling interests
    
–
      
–
      
–
      
(42
)
    
(42
)
   Cash contributions from noncontrolling interests
    
–
      
–
      
–
      
4
      
4
  
   Repurchase and cancellation of common units under 2019 Buyback Program
    
(17
)
    
–
      
–
      
–
      
(17
)
   Amortization of fair value of equity-based awards
    
41
      
–
      
–
      
–
      
41
  
   Cash flow hedges
    
–
      
–
      
(124
)
    
–
      
(124
)
   Other, net
    
(53
)
    
–
      
–
      
–
      
(53
)
Balance, March 31, 2023
  
$
27,843
    
$
(1,297
)
  
$
241
    
$
1,072
    
$
27,859
  



 
  
Partners’ Equity
              
   
Common
Limited
Partner
Interests
    
Treasury
Units
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Noncontrolling
Interests in
Consolidated
Subsidiaries
    
Total
  
Balance, December 31, 2021
  
$
26,340
    
$
(1,297
)
  
$
286
    
$
1,110
    
$
26,439
  
   Net income
    
1,296
      
–
      
–
      
34
      
1,330
  
   Cash distributions paid to common unitholders
    
(1,012
)
    
–
      
–
      
–
      
(1,012
)
   Cash payments made in connection with distribution equivalent rights
    
(8
)
    
–
      
–
      
–
      
(8
)
   Cash distributions paid to noncontrolling interests
    
–
      
–
      
–
      
(42
)
    
(42
)
   Cash contributions from noncontrolling interests
    
–
      
–
      
–
      
2
      
2
  
   Amortization of fair value of equity-based awards
    
38
      
–
      
–
      
–
      
38
  
   Cash flow hedges
    
–
      
–
      
(46
)
    
–
      
(46
)
   Other, net
    
(44
)
    
–
      
–
      
–
      
(44
)
Balance, March 31, 2022
  
$
26,610
    
$
(1,297
)
  
$
240
    
$
1,104
    
$
26,657
  


















See Notes to Unaudited Condensed Consolidated Financial Statements.  For information regarding Unit History,
Accumulated Other Comprehensive Income (Loss), see Note 8.

6

Table of Contents
ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

KEY REFERENCES USED IN THESE
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unless the context requires otherwise, references to “we,” “us” or “our” within these Notes to Unaudited Condensed Consolidated Financial Statements are intended to mean the business and operations of Enterprise Products Partners L.P. and its consolidated subsidiaries.  

References to the “Partnership” or “Enterprise” mean Enterprise Products Partners L.P. on a standalone basis.

References to “EPO” mean Enterprise Products Operating LLC, which is an indirect wholly owned subsidiary of the Partnership, and its consolidated subsidiaries, through which the Partnership conducts its business.  We are managed by our general partner, Enterprise Products Holdings LLC (“Enterprise GP”), which is a wholly owned subsidiary of Dan Duncan LLC, a privately held Texas limited liability company.

The membership interests of Dan Duncan LLC are owned by a voting trust, the current trustees (“DD LLC Trustees”) of which are: (i) Randa Duncan Williams, who is also a director and Chairman of the Board of Directors (the “Board”) of Enterprise GP;  (ii) Richard H. Bachmann, who is also a director and Vice Chairman of the Board of Enterprise GP; and (iii) W. Randall Fowler, who is also a director and the Co-Chief Executive Officer and Chief Financial Officer of Enterprise GP.  Ms. Duncan Williams and Messrs. Bachmann and Fowler also currently serve as managers of Dan Duncan LLC.

References to “EPCO” mean Enterprise Products Company, a privately held Texas corporation, and its privately held affiliates.  The outstanding voting capital stock of EPCO is owned by a voting trust, the current trustees (“EPCO Trustees”) of which are: (i) Ms. Duncan Williams, who serves as Chairman of EPCO; (ii) Mr. Bachmann, who serves as the President and Chief Executive Officer of EPCO; and (iii) Mr. Fowler, who serves as an Executive Vice President and the Chief Financial Officer of EPCO.  Ms. Duncan Williams and Messrs. Bachmann and Fowler also currently serve as directors of EPCO.

We, Enterprise GP, EPCO and Dan Duncan LLC are affiliates under the collective common control of the DD LLC Trustees and the EPCO Trustees.  EPCO, together with its privately held affiliates, owned approximately 32.3% of the Partnership’s common units outstanding at March 31, 2023.

With the exception of per unit amounts, or as noted within the context of each disclosure,
the dollar amounts presented in the tabular data within these disclosures are
stated in millions of dollars.

7

Table of Contents
ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1.  Partnership Organization and Operations

We are a publicly traded Delaware limited partnership, the common units of which are listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “EPD.”  Our preferred units are not publicly traded.  We were formed in April 1998 to own and operate certain natural gas liquids (“NGLs”) related businesses of EPCO and are a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, petrochemicals and refined products.  We are owned by our limited partners (preferred and common unitholders) from an economic perspective.  Enterprise GP, which owns a non-economic general partner interest in us, manages our Partnership.  We conduct substantially all of our business operations through EPO and its consolidated subsidiaries.

Our fully integrated, midstream energy asset network (or “value chain”) links producers of natural gas, NGLs and crude oil from some of the largest supply basins in the United States (“U.S.”), Canada and the Gulf of Mexico with domestic consumers and international markets.  Our midstream energy operations include:

•
natural gas gathering, treating, processing, transportation and storage;

•
NGL transportation, fractionation, storage, and marine terminals (including those used to export liquefied petroleum gases (“LPG”) and ethane);

•
crude oil gathering, transportation, storage, and marine terminals;

•
propylene production facilities (including propane dehydrogenation (“PDH”) facilities), butane isomerization, octane enhancement, isobutane dehydrogenation (“iBDH”) and high purity isobutylene (“HPIB”) production facilities;

•
petrochemical and refined products transportation, storage, and marine terminals (including those used to export ethylene and polymer grade propylene (“PGP”)); and

•
a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. 

Like many publicly traded partnerships, we have no employees.  All of our management, administrative and operating functions are performed by employees of EPCO pursuant to an administrative services agreement (the “ASA”) or by other service providers.  See Note 14 for information regarding related party matters.

Our results of operations for the three months ended March 31, 2023 are not necessarily indicative of results expected for the full year of 2023.  In our opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments consisting of normal recurring accruals necessary for fair presentation.  Although we believe the disclosures in these financial statements are adequate and make the information presented not misleading, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).

These Unaudited Condensed Consolidated Financial Statements and Notes thereto should be read in conjunction with the Audited Consolidated Financial Statements and Notes thereto included in our annual report on Form 10-K for the year ended December 31, 2022  (the “2022 Form 10-K”) filed with the SEC on February 28, 2023.




8

Table of Contents
ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2.  Summary of Significant Accounting Policies

Apart from those matters described in this footnote, there have been no updates to our significant accounting policies since those reported under Note 2 of the 2022 Form 10-K.

Allowance for Credit Losses

We estimate our allowance for credit losses at each reporting date using a current expected credit loss model, which requires the measurement of expected credit losses for financial assets (e.g., accounts receivable) based on historical experience with customers, current economic conditions, and reasonable and supportable forecasts.  We may also increase the allowance for credit losses in response to the specific identification of customers involved in bankruptcy proceedings and similar financial difficulties.

The following table presents our allowance for credit losses activity since December 31, 2022:

Allowance for credit losses, December 31, 2022
  
$
54
  
Charged to costs and expenses
    
–
  
Charged to other accounts
    
–
  
Deductions
    
(1
)
Allowance for credit losses, March 31, 2023
  
$
53
  

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the Unaudited Condensed Consolidated Balance Sheets that sum to the total of the amounts shown in the Unaudited Condensed Statements of Consolidated Cash Flows.

   
March 31,
2023
    
December 31,
2022
  
Cash and cash equivalents
  
$
76
    
$
76
  
Restricted cash
    
200
      
130
  
Total cash, cash equivalents and restricted cash shown in the
  Unaudited Condensed Statements of Consolidated Cash Flows
  
$
276
    
$
206
  

Restricted cash primarily represents amounts held in segregated bank accounts by our clearing brokers as margin in support of our commodity derivative instruments portfolio and related physical purchases and sales of natural gas, NGLs, crude oil, refined products and power.  Additional cash may be restricted to maintain our commodity derivative instruments portfolio as prices fluctuate or margin requirements change.  See Note 13 for information regarding our derivative instruments and hedging activities.


Note 3.  Inventories

Our inventory amounts by product type were as follows at the dates indicated:

   
March 31,
2023
    
December 31,
2022
  
NGLs
  
$
1,643
    
$
1,689
  
Petrochemicals and refined products
    
201
      
430
  
Crude oil
    
335
      
411
  
Natural gas
    
16
      
24
  
Total
  
$
2,195
    
$
2,554
  

9

Table of Contents
ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Due to fluctuating commodity prices, we recognize lower of cost or net realizable value adjustments when the carrying value of our available-for-sale inventories exceeds their net realizable value.  The following table presents our total cost of sales amounts and lower of cost or net realizable value adjustments for the periods indicated:

 
For the Three Months
Ended March 31,
  
 
2023
  
2022
  
Cost of sales (1)
  
$
9,331
    
$
10,098
  
Lower of cost or net realizable value adjustments recognized in cost of sales
    
7
      
4
  

(1)
Cost of sales is a component of “Operating costs and expenses” as presented on our Unaudited Condensed Statements of Consolidated Operations.  Fluctuations in these amounts are primarily due to changes in energy commodity prices and sales volumes associated with our marketing activities.


Note 4.  Property, Plant and Equipment

The historical costs of our property, plant and equipment and related balances were as follows at the dates indicated:

 
  
Estimated
Useful Life
in Years
    
March 31,
2023
    
December 31,
2022
  
Plants, pipelines and facilities (1)
    
3-45
(5)
  
$
54,577
    
$
54,396
  
Underground and other storage facilities (2)
    
5-40
(6)
    
4,336
      
4,329
  
Transportation equipment (3)
    
3-10
      
225
      
222
  
Marine vessels (4)
    
15-30
      
922
      
921
  
Land
            
391
      
387
  
Construction in progress
            
3,312
      
2,867
  
   Subtotal
            
63,763
      
63,122
  
Less accumulated depreciation
            
19,235
      
18,800
  
   Subtotal property, plant and equipment, net
            
44,528
      
44,322
  
Capitalized major maintenance costs for reaction-based
   plants, net of accumulated amortization (7)
            
69
      
79
  
   Property, plant and equipment, net
          
$
44,597
    
$
44,401
  

(1)
Plants, pipelines and facilities include processing plants; NGL, natural gas, crude oil and petrochemical and refined products pipelines; terminal loading and unloading facilities; buildings; office furniture and equipment; laboratory and shop equipment and related assets.
(2)
Underground and other storage facilities include underground product storage caverns; above ground storage tanks; water wells and related assets.
(3)
Transportation equipment includes tractor-trailer tank trucks and other vehicles and similar assets used in our operations.
(4)
Marine vessels include tow boats, barges and related equipment used in our marine transportation business.
(5)
In general, the estimated useful lives of major assets within this category are: processing plants, 20-35 years; pipelines and related equipment, 5-45 years; terminal facilities, 10-35 years; buildings, 20-40 years; office furniture and equipment, 3-20 years; and laboratory and shop equipment, 5-35 years.
(6)
In general, the estimated useful lives of assets within this category are: underground storage facilities, 5-35 years; storage tanks, 10-40 years; and water wells, 5-35 years.
(7)
For reaction-based plants, we use the deferral method when accounting for major maintenance activities.  Under the deferral method, major maintenance costs are capitalized and amortized over the period until the next major overhaul project.  On a weighted-average basis, the expected amortization period for these costs is 1.2 years.

Property, plant and equipment at March 31, 2023 and December 31, 2022 includes $116 million and $117 million, respectively, of asset retirement costs capitalized as an increase in the associated long-lived asset.
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ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following table presents information regarding our asset retirement obligations, or AROs, since December 31, 2022:

ARO liability balance, December 31, 2022
  
$
234
  
Liabilities incurred (1)
    
–
  
Revisions in estimated cash flows (2)
    
–
  
Liabilities settled (3)
    
–
  
Accretion expense (4)
    
4
  
ARO liability balance, March 31, 2023
  
$
238
  

(1)
Represents the initial recognition of estimated ARO liabilities during period.
(2)
Represents subsequent adjustments to estimated ARO liabilities during period.
(3)
Represents cash payments to settle ARO liabilities during period.
(4)
Represents net change in ARO liability balance attributable to the passage of time and other adjustments, including true-up amounts associated with revised closure estimates.

Of the $238 million total ARO liability recorded at March 31, 2023, $20 million was reflected as a current liability and $218 million as a long-term liability.

The following table summarizes our depreciation expense and capitalized interest amounts for the periods indicated:

 
For the Three Months
Ended March 31,
  
 
2023
  
2022
  
Depreciation expense (1)
  
$
450
    
$
438
  
Capitalized interest (2)
    
32
      
17
  

(1)
Depreciation expense is a component of “Costs and expenses” as presented on our Unaudited Condensed Statements of Consolidated Operations.
(2)
We capitalize interest costs incurred on funds used to construct property, plant and equipment while the asset is in its construction phase.  The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life as a component of depreciation expense.  When capitalized interest is recorded, it reduces interest expense from what it would be otherwise.


Note 5.  Investments in Unconsolidated Affiliates

The following table presents our investments in unconsolidated affiliates by business segment at the dates indicated.  We account for these investments using the equity method.

   
March 31,
2023
    
December 31,
2022
  
NGL Pipelines & Services
  
$
634
    
$
640
  
Crude Oil Pipelines & Services
    
1,669
      
1,677
  
Natural Gas Pipelines & Services
    
32
      
32
  
Petrochemical & Refined Products Services
    
3
      
3
  
Total
  
$
2,338
    
$
2,352
  

The following table presents our equity in income of unconsolidated affiliates by business segment for the periods indicated:

 
  
For the Three Months
Ended March 31,
  
 
  
2023
    
2022
  
NGL Pipelines & Services
  
$
39
    
$
34
  
Crude Oil Pipelines & Services
    
64
      
81
  
Natural Gas Pipelines & Services
    
1
      
2
  
Petrochemical & Refined Products Services
    
–
      
–
  
Total
  
$
104
    
$
117
  


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ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 6.  Intangible Assets and Goodwill

Identifiable Intangible Assets

The following table summarizes our intangible assets by business segment at the dates indicated:

   
March 31, 2023
    
December 31, 2022
  
 
  
Gross
Value
    
Accumulated
Amortization
    
Carrying
Value
    
Gross
Value
    
Accumulated
Amortization
    
Carrying
Value
  
NGL Pipelines & Services:
                                    
Customer relationship intangibles
  
$
449
    
$
(253
)
  
$
196
    
$
449
    
$
(249
)
  
$
200
  
Contract-based intangibles
    
749
      
(89
)
    
660
      
749
      
(84
)
    
665
  
Segment total
    
1,198
      
(342
)
    
856
      
1,198
      
(333
)
    
865
  
Crude Oil Pipelines & Services:
                                                
Customer relationship intangibles
    
2,195
      
(453
)
    
1,742
      
2,195
      
(431
)
    
1,764
  
Contract-based intangibles
    
283
      
(272
)
    
11
      
283
      
(271
)
    
12
  
Segment total
    
2,478
      
(725
)
    
1,753
      
2,478
      
(702
)
    
1,776
  
Natural Gas Pipelines & Services:
                                                
Customer relationship intangibles
    
1,350
      
(596
)
    
754
      
1,350
      
(588
)
    
762
  
Contract-based intangibles
    
639
      
(199
)
    
440
      
639
      
(195
)
    
444
  
Segment total
    
1,989
      
(795
)
    
1,194
      
1,989
      
(783
)
    
1,206
  
Petrochemical & Refined Products Services:
                                                
Customer relationship intangibles
    
181
      
(82
)
    
99
      
181
      
(80
)
    
101
  
Contract-based intangibles
    
45
      
(28
)
    
17
      
45
      
(28
)
    
17
  
Segment total
    
226
      
(110
)
    
116
      
226
      
(108
)
    
118
  
Total intangible assets
  
$
5,891
    
$
(1,972
)
  
$
3,919
    
$
5,891
    
$
(1,926
)
  
$
3,965
  

The following table presents the amortization expense of our intangible assets by business segment for the periods indicated:

 
  
For the Three Months
Ended March 31,
  
 
  
2023
    
2022
  
NGL Pipelines & Services
  
$
9
    
$
8
  
Crude Oil Pipelines & Services
    
23
      
20
  
Natural Gas Pipelines & Services
    
12
      
11
  
Petrochemical & Refined Products Services
    
2
      
2
  
Total
  
$
46
    
$
41
  

The following table presents our forecast of amortization expense associated with existing intangible assets for the periods indicated:

Remainder
of 2023
    
2024
    
2025
    
2026
    
2027
  
$
154
    
$
222
    
$
230
    
$
237
    
$
235
  

Goodwill

Goodwill represents the excess of the purchase price of an acquired business over the amounts assigned to assets acquired and liabilities assumed in the transaction.  There has been no change in our goodwill amounts since those reported in our 2022 Form 10-K.


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ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 7.  Debt Obligations

The following table presents our consolidated debt obligations (arranged by company and maturity date) at the dates indicated:

   
March 31,
2023
    
December 31,
2022
  
EPO senior debt obligations:
            
Commercial Paper Notes, variable-rates
  
$
300
    
$
495
  
Senior Notes HH, 3.35% fixed-rate, due March 2023
    
–
      
1,250
  
Senior Notes JJ, 3.90% fixed-rate, due February 2024
    
850
      
850
  
March 2023 $1.5 Billion 364-Day Revolving Credit Agreement, variable-rate, due March 2024 (1)
    
–
      
–
  
Senior Notes MM, 3.75% fixed-rate, due February 2025
    
1,150
      
1,150
  
Senior Notes FFF, 5.05% fixed-rate, due January 2026
    
750
      
–
  
Senior Notes PP, 3.70% fixed-rate, due February 2026
    
875
      
875
  
Senior Notes SS, 3.95% fixed-rate, due February 2027
    
575
      
575
  
March 2023 $2.7 Billion Multi-Year Revolving Credit Agreement, variable-rate, due March 2028 (2)
    
–
      
–
  
Senior Notes WW, 4.15% fixed-rate, due October 2028
    
1,000
      
1,000