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)
|
Title of Each Class
|
Trading Symbol(s)
|
Name of Each Exchange On Which Registered
|
Common Units
|
EPD
|
New York Stock Exchange
|
Large Accelerated Filer ☑
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
|
|
Page No.
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
|
||
|
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|
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|
September 30,
2020
|
December 31,
2019
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
1,032.2
|
$
|
334.7
|
||||
Restricted cash
|
98.9
|
75.3
|
||||||
Accounts receivable – trade, net of allowance for doubtful accounts
of $13.8 at September 30, 2020 and $12.4 at December 31, 2019
|
3,776.2
|
4,873.6
|
||||||
Accounts receivable – related parties
|
4.1
|
2.5
|
||||||
Inventories
|
3,192.6
|
2,091.4
|
||||||
Derivative assets
|
132.9
|
127.2
|
||||||
Prepaid and other current assets
|
556.4
|
358.2
|
||||||
Total current assets
|
8,793.3
|
7,862.9
|
||||||
Property, plant and equipment, net
|
42,360.1
|
41,603.4
|
||||||
Investments in unconsolidated affiliates
|
2,485.4
|
2,600.2
|
||||||
Intangible assets, net of accumulated amortization of $1,796.8 at
September 30, 2020 and $1,687.5 at December 31, 2019 (see Note 6)
|
3,348.6
|
3,449.0
|
||||||
Goodwill (see Note 6)
|
5,745.2
|
5,745.2
|
||||||
Other assets
|
1,003.6
|
472.5
|
||||||
Total assets
|
$
|
63,736.2
|
$
|
61,733.2
|
||||
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current maturities of debt (see Note 7)
|
$
|
1,325.0
|
$
|
1,981.9
|
||||
Accounts payable – trade
|
896.0
|
1,004.5
|
||||||
Accounts payable – related parties
|
121.3
|
162.3
|
||||||
Accrued product payables
|
4,317.1
|
4,915.7
|
||||||
Accrued interest
|
235.1
|
431.7
|
||||||
Derivative liabilities
|
329.7
|
122.4
|
||||||
Other current liabilities
|
622.7
|
511.2
|
||||||
Total current liabilities
|
7,846.9
|
9,129.7
|
||||||
Long-term debt (see Note 7)
|
28,537.0
|
25,643.2
|
||||||
Deferred tax liabilities (see Note 11)
|
463.3
|
100.4
|
||||||
Other long-term liabilities
|
735.2
|
1,032.4
|
||||||
Commitments and contingent liabilities (see Note 16)
|
|
|
||||||
Redeemable preferred limited partner interests: (see Note 8)
|
||||||||
Series A cumulative convertible preferred units (“preferred units”)
(50,000 units outstanding at September 30, 2020)
|
49.1
|
|||||||
Equity: (see Note 8)
|
||||||||
Partners’ equity:
|
||||||||
Common limited partner interests (2,182,880,979 units issued and outstanding at September 30, 2020, 2,189,226,130 units issued and outstanding at December 31, 2019)
|
26,381.9
|
24,692.6
|
||||||
Treasury units, at cost
|
(1,297.3
|
)
|
–
|
|||||
Accumulated other comprehensive income (loss)
|
(49.3
|
)
|
71.4
|
|||||
Total partners’ equity
|
25,035.3
|
24,764.0
|
||||||
Noncontrolling interests in consolidated subsidiaries
|
1,069.4
|
1,063.5
|
||||||
Total equity
|
26,104.7
|
25,827.5
|
||||||
Total liabilities, preferred units, and equity
|
$
|
63,736.2
|
$
|
61,733.2
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Revenues:
|
||||||||||||||||
Third parties
|
$
|
6,914.5
|
$
|
7,948.5
|
$
|
20,126.3
|
$
|
24,730.2
|
||||||||
Related parties
|
7.5
|
15.6
|
29.2
|
53.7
|
||||||||||||
Total revenues (see Note 9)
|
6,922.0
|
7,964.1
|
20,155.5
|
24,783.9
|
||||||||||||
Costs and expenses:
|
||||||||||||||||
Operating costs and expenses:
|
||||||||||||||||
Third parties
|
5,288.2
|
6,217.6
|
15,087.4
|
19,342.4
|
||||||||||||
Related parties
|
283.0
|
356.1
|
914.5
|
1,051.9
|
||||||||||||
Total operating costs and expenses
|
5,571.2
|
6,573.7
|
16,001.9
|
20,394.3
|
||||||||||||
General and administrative costs:
|
||||||||||||||||
Third parties
|
16.3
|
19.1
|
63.1
|
60.9
|
||||||||||||
Related parties
|
34.0
|
36.4
|
99.7
|
99.3
|
||||||||||||
Total general and administrative costs
|
50.3
|
55.5
|
162.8
|
160.2
|
||||||||||||
Total costs and expenses (see Note 10)
|
5,621.5
|
6,629.2
|
16,164.7
|
20,554.5
|
||||||||||||
Equity in income of unconsolidated affiliates
|
82.0
|
139.3
|
336.1
|
431.3
|
||||||||||||
Operating income
|
1,382.5
|
1,474.2
|
4,326.9
|
4,660.7
|
||||||||||||
Other income (expense):
|
||||||||||||||||
Interest expense
|
(320.5
|
)
|
(382.9
|
)
|
(958.2
|
)
|
(950.2
|
)
|
||||||||
Change in fair market value of Liquidity Option (see Note 8)
|
–
|
(38.7
|
)
|
(2.3
|
)
|
(123.1
|
)
|
|||||||||
Interest income
|
2.2
|
6.9
|
12.3
|
8.9
|
||||||||||||
Other, net
|
0.7
|
0.7
|
2.5
|
2.8
|
||||||||||||
Total other expense, net
|
(317.6
|
)
|
(414.0
|
)
|
(945.7
|
)
|
(1,061.6
|
)
|
||||||||
Income before income taxes
|
1,064.9
|
1,060.2
|
3,381.2
|
3,599.1
|
||||||||||||
Benefit from (provision for) income taxes (see Note 11)
|
19.1
|
(15.4
|
)
|
138.6
|
(37.4
|
)
|
||||||||||
Net income
|
1,084.0
|
1,044.8
|
3,519.8
|
3,561.7
|
||||||||||||
Net income attributable to noncontrolling interests
|
(31.4
|
)
|
(25.6
|
)
|
(82.4
|
)
|
(67.3
|
)
|
||||||||
Net income attributable to preferred units (see Note 8)
|
-
|
*
|
–
|
-
|
*
|
–
|
||||||||||
Net income attributable to common unitholders
|
$
|
1,052.6
|
$
|
1,019.2
|
$
|
3,437.4
|
$
|
3,494.4
|
||||||||
|
||||||||||||||||
* Amount is negligible
|
||||||||||||||||
Earnings per unit: (see Note 12)
|
||||||||||||||||
Basic earnings per common unit
|
$
|
0.48
|
$
|
0.46
|
$
|
1.56
|
$
|
1.59
|
||||||||
Diluted earnings per common unit
|
$
|
0.48
|
$
|
0.46
|
$
|
1.56
|
$
|
1.59
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
|
||||||||||||||||
Net income
|
$
|
1,084.0
|
$
|
1,044.8
|
$
|
3,519.8
|
$
|
3,561.7
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Cash flow hedges: (see Note 14)
|
||||||||||||||||
Commodity hedging derivative instruments:
|
||||||||||||||||
Changes in fair value of cash flow hedges
|
(4.2
|
)
|
72.3
|
392.7
|
58.6
|
|||||||||||
Reclassification of losses (gains) to net income
|
29.5
|
(91.5
|
)
|
(334.8
|
)
|
(152.0
|
)
|
|||||||||
Interest rate hedging derivative instruments:
|
||||||||||||||||
Changes in fair value of cash flow hedges
|
62.6
|
(18.6
|
)
|
(207.7
|
)
|
(23.8
|
)
|
|||||||||
Reclassification of losses to net income
|
9.9
|
9.4
|
29.2
|
27.8
|
||||||||||||
Total cash flow hedges
|
97.8
|
(28.4
|
)
|
(120.6
|
)
|
(89.4
|
)
|
|||||||||
Other
|
–
|
–
|
(0.1
|
)
|
(0.6
|
)
|
||||||||||
Total other comprehensive income (loss)
|
97.8
|
(28.4
|
)
|
(120.7
|
)
|
(90.0
|
)
|
|||||||||
Comprehensive income
|
1,181.8
|
1,016.4
|
3,399.1
|
3,471.7
|
||||||||||||
Comprehensive income attributable to noncontrolling interests
|
(31.4
|
)
|
(25.6
|
)
|
(82.4
|
)
|
(67.3
|
)
|
||||||||
Comprehensive income attributable to preferred units (see Note 8)
|
-
|
*
|
–
|
-
|
*
|
–
|
||||||||||
Comprehensive income attributable to common unitholders
|
$
|
1,150.4
|
$
|
990.8
|
$
|
3,316.7
|
$
|
3,404.4
|
|
For the Nine Months
Ended September 30,
|
|||||||
|
2020
|
2019
|
||||||
Operating activities:
|
||||||||
Net income
|
$
|
3,519.8
|
$
|
3,561.7
|
||||
Reconciliation of net income to net cash flows provided by operating activities:
|
||||||||
Depreciation, amortization and accretion
|
1,545.1
|
1,456.7
|
||||||
Asset impairment and related charges
|
90.4
|
51.3
|
||||||
Equity in income of unconsolidated affiliates
|
(336.1
|
)
|
(431.3
|
)
|
||||
Distributions received from unconsolidated affiliates attributable to earnings
|
337.4
|
431.2
|
||||||
Net gains attributable to asset sales
|
(2.1
|
)
|
(2.6
|
)
|
||||
Deferred income tax expense (benefit)
|
(149.0
|
)
|
10.9
|
|||||
Change in fair market value of derivative instruments
|
(53.7
|
)
|
2.0
|
|||||
Change in fair market value of Liquidity Option
|
2.3
|
123.1
|
||||||
Non-cash expense related to long-term operating leases (see Note 16)
|
29.6
|
32.4
|
||||||
Net effect of changes in operating accounts (see Note 17)
|
(692.0
|
)
|
(409.0
|
)
|
||||
Other operating activities
|
(0.1
|
)
|
(0.2
|
)
|
||||
Net cash flows provided by operating activities
|
4,291.6
|
4,826.2
|
||||||
Investing activities:
|
||||||||
Capital expenditures
|
(2,671.6
|
)
|
(3,302.1
|
)
|
||||
Investments in unconsolidated affiliates
|
(9.9
|
)
|
(100.1
|
)
|
||||
Distributions received from unconsolidated affiliates attributable to the return of capital
|
124.9
|
53.9
|
||||||
Proceeds from asset sales
|
8.4
|
16.8
|
||||||
Other investing activities
|
(16.0
|
)
|
(41.3
|
)
|
||||
Cash used in investing activities
|
(2,564.2
|
)
|
(3,372.8
|
)
|
||||
Financing activities:
|
||||||||
Borrowings under debt agreements
|
6,672.1
|
44,629.6
|
||||||
Repayments of debt
|
(4,406.6
|
)
|
(42,855.3
|
)
|
||||
Debt issuance costs
|
(46.3
|
)
|
(26.3
|
)
|
||||
Monetization of interest rate derivative instruments
|
(33.3
|
)
|
–
|
|||||
Cash distributions paid to common unitholders (see Note 8)
|
(2,919.6
|
)
|
(2,871.1
|
)
|
||||
Cash payments made in connection with distribution equivalent rights
|
(20.0
|
)
|
(16.4
|
)
|
||||
Cash distributions paid to noncontrolling interests
|
(97.8
|
)
|
(69.7
|
)
|
||||
Cash contributions from noncontrolling interests
|
21.2
|
590.8
|
||||||
Net cash proceeds from the issuance of common units
|
–
|
82.2
|
||||||
Repurchase of common units under 2019 Buyback Program (see Note 8)
|
(173.8
|
)
|
(81.1
|
)
|
||||
Net cash proceeds from the issuance of preferred units (see Note 8)
|
32.5
|
–
|
||||||
Other financing activities
|
(34.7
|
)
|
(38.4
|
)
|
||||
Cash used in financing activities
|
(1,006.3
|
)
|
(655.7
|
)
|
||||
Net change in cash and cash equivalents, including restricted cash
|
721.1
|
797.7
|
||||||
Cash and cash equivalents, including restricted cash, at beginning of period
|
410.0
|
410.1
|
||||||
Cash and cash equivalents, including restricted cash, at end of period
|
$
|
1,131.1
|
$
|
1,207.8
|
|
Partners’ Equity
|
|||||||||||||||||||
Common
Limited
Partner
Interests
|
Treasury
Units
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Noncontrolling
Interests in
Consolidated
Subsidiaries
|
Total
|
||||||||||||||||
For the Three Months Ended September 30, 2020:
|
||||||||||||||||||||
Balance, June 30, 2020
|
$
|
26,321.1
|
$
|
(1,297.3
|
)
|
$
|
(147.1
|
)
|
$
|
1,064.7
|
$
|
25,941.4
|
||||||||
Net income
|
1,052.6
|
–
|
–
|
31.4
|
1,084.0
|
|||||||||||||||
Cash distributions paid to common unitholders
|
(972.7
|
)
|
–
|
–
|
–
|
(972.7
|
)
|
|||||||||||||
Cash payments made in connection with
distribution equivalent rights
|
(7.1
|
)
|
–
|
–
|
–
|
(7.1
|
)
|
|||||||||||||
Cash distributions paid to noncontrolling interests
|
–
|
–
|
–
|
(36.0
|
)
|
(36.0
|
)
|
|||||||||||||
Cash contributions from noncontrolling interests
|
–
|
–
|
–
|
1.5
|
1.5
|
|||||||||||||||
Amortization of fair value of equity-based awards
|
39.5
|
–
|
–
|
–
|
39.5
|
|||||||||||||||
Repurchase and cancellation of common units under
2019 Buyback Program (see Note 8)
|
(33.7
|
)
|
–
|
–
|
–
|
(33.7
|
)
|
|||||||||||||
Common units exchanged for preferred units, with common
units received being immediately cancelled (see Note 8)
|
(17.5
|
)
|
–
|
–
|
–
|
(17.5
|
)
|
|||||||||||||
Cash flow hedges
|
–
|
–
|
97.8
|
–
|
97.8
|
|||||||||||||||
Other, net
|
(0.3
|
)
|
–
|
–
|
7.8
|
7.5
|
||||||||||||||
Balance, September 30, 2020
|
$
|
26,381.9
|
$
|
(1,297.3
|
)
|
$
|
(49.3
|
)
|
$
|
1,069.4
|
$
|
26,104.7
|
|
Partners’ Equity
|
|||||||||||||||||||
Common
Limited
Partner
Interests
|
Treasury
Units
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Noncontrolling
Interests in
Consolidated
Subsidiaries
|
Total
|
||||||||||||||||
For the Nine Months Ended September 30, 2020:
|
||||||||||||||||||||
Balance, December 31, 2019
|
$
|
24,692.6
|
$
|
–
|
$
|
71.4
|
$
|
1,063.5
|
$
|
25,827.5
|
||||||||||
Net income
|
3,437.4
|
–
|
–
|
82.4
|
3,519.8
|
|||||||||||||||
Cash distributions paid to common unitholders
|
(2,919.6
|
)
|
–
|
–
|
–
|
(2,919.6
|
)
|
|||||||||||||
Cash payments made in connection with
distribution equivalent rights
|
(20.0
|
)
|
–
|
–
|
–
|
(20.0
|
)
|
|||||||||||||
Cash distributions paid to noncontrolling interests
|
–
|
–
|
–
|
(97.8
|
)
|
(97.8
|
)
|
|||||||||||||
Cash contributions from noncontrolling interests
|
–
|
–
|
–
|
21.2
|
21.2
|
|||||||||||||||
Amortization of fair value of equity-based awards
|
120.1
|
–
|
–
|
–
|
120.1
|
|||||||||||||||
Repurchase and cancellation of common units under
2019 Buyback Program (see Note 8)
|
(173.8
|
)
|
–
|
–
|
–
|
(173.8
|
)
|
|||||||||||||
Common units issued to Skyline North Americas, Inc. in
connection with settlement of Liquidity Option (see Note 8)
|
1,297.3
|
–
|
–
|
–
|
1,297.3
|
|||||||||||||||
Treasury units acquired in connection with settlement
of Liquidity Option, at cost (see Note 8)
|
–
|
(1,297.3
|
)
|
–
|
–
|
(1,297.3
|
)
|
|||||||||||||
Common units exchanged for preferred units, with common
units received being immediately cancelled (see Note 8)
|
(17.5
|
)
|
–
|
–
|
–
|
(17.5
|
)
|
|||||||||||||
Cash flow hedges
|
–
|
–
|
(120.6
|
)
|
–
|
(120.6
|
)
|
|||||||||||||
Other, net
|
(34.6
|
)
|
–
|
(0.1
|
)
|
0.1
|
(34.6
|
)
|
||||||||||||
Balance, September 30, 2020
|
$
|
26,381.9
|
$
|
(1,297.3
|
)
|
$
|
(49.3
|
)
|
$
|
1,069.4
|
$
|
26,104.7
|
|
Partners’ Equity
|
|||||||||||||||
Common
Limited
Partner
Interests
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Noncontrolling
Interests in
Consolidated
Subsidiaries
|
Total
|
|||||||||||||
For the Three Months Ended September 30, 2019:
|
||||||||||||||||
Balance, June 30, 2019
|
$
|
24,450.5
|
$
|
(10.7
|
)
|
$
|
535.6
|
$
|
24,975.4
|
|||||||
Net income
|
1,019.2
|
–
|
25.6
|
1,044.8
|
||||||||||||
Cash distributions paid to common unitholders
|
(963.2
|
)
|
–
|
–
|
(963.2
|
)
|
||||||||||
Cash payments made in connection with distribution equivalent rights
|
(5.9
|
)
|
–
|
–
|
(5.9
|
)
|
||||||||||
Cash distributions paid to noncontrolling interests
|
–
|
–
|
(22.8
|
)
|
(22.8
|
)
|
||||||||||
Cash contributions from noncontrolling interests
|
–
|
–
|
491.2
|
491.2
|
||||||||||||
Amortization of fair value of equity-based awards
|
36.7
|
–
|
–
|
36.7
|
||||||||||||
Cash flow hedges
|
–
|
(28.4
|
)
|
–
|
(28.4
|
)
|
||||||||||
Other, net
|
(2.2
|
)
|
–
|
(0.1
|
)
|
(2.3
|
)
|
|||||||||
Balance, September 30, 2019
|
$
|
24,535.1
|
$
|
(39.1
|
)
|
$
|
1,029.5
|
$
|
25,525.5
|
|
Partners’ Equity
|
|||||||||||||||
Common
Limited
Partner
Interests
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Noncontrolling
Interests in
Consolidated
Subsidiaries
|
Total
|
|||||||||||||
For the Nine Months Ended September 30, 2019:
|
||||||||||||||||
Balance, December 31, 2018
|
$
|
23,802.6
|
$
|
50.9
|
$
|
438.7
|
$
|
24,292.2
|
||||||||
Net income
|
3,494.4
|
–
|
67.3
|
3,561.7
|
||||||||||||
Cash distributions paid to common unitholders
|
(2,871.1
|
)
|
–
|
–
|
(2,871.1
|
)
|
||||||||||
Cash payments made in connection with distribution equivalent rights
|
(16.4
|
)
|
–
|
–
|
(16.4
|
)
|
||||||||||
Cash distributions paid to noncontrolling interests
|
–
|
–
|
(69.7
|
)
|
(69.7
|
)
|
||||||||||
Cash contributions from noncontrolling interests
|
–
|
–
|
590.8
|
590.8
|
||||||||||||
Net cash proceeds from the issuance of common units
|
82.2
|
–
|
–
|
82.2
|
||||||||||||
Common units issued in connection with employee compensation
|
45.6
|
–
|
–
|
45.6
|
||||||||||||
Repurchase and cancellation of common units under
2019 Buyback Program (see Note 8)
|
(81.1
|
)
|
–
|
–
|
(81.1
|
)
|
||||||||||
Amortization of fair value of equity-based awards
|
107.2
|
–
|
–
|
107.2
|
||||||||||||
Cash flow hedges
|
–
|
(89.4
|
)
|
–
|
(89.4
|
)
|
||||||||||
Other, net
|
(28.3
|
)
|
(0.6
|
)
|
2.4
|
(26.5
|
)
|
|||||||||
Balance, September 30, 2019
|
$
|
24,535.1
|
$
|
(39.1
|
)
|
$
|
1,029.5
|
$
|
25,525.5
|
September 30,
2020
|
December 31,
2019
|
|||||||
Cash and cash equivalents
|
$
|
1,032.2
|
$
|
334.7
|
||||
Restricted cash
|
98.9
|
75.3
|
||||||
Total cash, cash equivalents and restricted cash shown in the
Unaudited Condensed Statements of Consolidated Cash Flows
|
$
|
1,131.1
|
$
|
410.0
|
September 30,
2020
|
December 31,
2019
|
|||||||
NGLs
|
$
|
1,678.1
|
$
|
1,094.9
|
||||
Petrochemicals and refined products
|
800.8
|
311.5
|
||||||
Crude oil
|
696.1
|
674.2
|
||||||
Natural gas
|
17.6
|
10.8
|
||||||
Total
|
$
|
3,192.6
|
$
|
2,091.4
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Cost of sales (1)
|
$
|
4,313.7
|
$
|
5,276.5
|
$
|
12,331.9
|
$
|
16,721.5
|
||||||||
Lower of cost or net realizable value adjustments
recognized in cost of sales
|
4.4
|
6.8
|
55.6
|
17.1
|
(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.
|
|
Estimated
Useful Life
in Years
|
September 30,
2020
|
December 31,
2019
|
|||||||||
Plants, pipelines and facilities (1)
|
3-45
|
(5)
|
$
|
49,050.9
|
$
|
47,201.2
|
||||||
Underground and other storage facilities (2)
|
5-40
|
(6)
|
4,133.7
|
3,965.5
|
||||||||
Transportation equipment (3)
|
3-10
|
204.1
|
198.9
|
|||||||||
Marine vessels (4)
|
15-30
|
928.9
|
905.9
|
|||||||||
Land
|
376.7
|
372.3
|
||||||||||
Construction in progress
|
2,468.9
|
2,641.2
|
||||||||||
Total
|
57,163.2
|
55,285.0
|
||||||||||
Less accumulated depreciation
|
14,803.1
|
13,681.6
|
||||||||||
Property, plant and equipment, net
|
$
|
42,360.1
|
$
|
41,603.4
|
(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.
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Depreciation expense (1)
|
$
|
420.7
|
$
|
394.7
|
$
|
1,251.6
|
$
|
1,164.6
|
||||||||
Capitalized interest (2)
|
34.5
|
33.9
|
96.9
|
102.9
|
(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.
|
ARO liability balance, December 31, 2019
|
$
|
132.1
|
||
Liabilities incurred
|
3.5
|
|||
Liabilities settled
|
(0.6
|
)
|
||
Revisions in estimated cash flows
|
2.9
|
|||
Accretion expense
|
6.1
|
|||
ARO liability balance, September 30, 2020
|
$
|
144.0
|
September 30,
2020
|
December 31,
2019
|
|||||||
NGL Pipelines & Services
|
$
|
676.4
|
$
|
703.8
|
||||
Crude Oil Pipelines & Services
|
1,774.8
|
1,866.5
|
||||||
Natural Gas Pipelines & Services
|
29.9
|
27.3
|
||||||
Petrochemical & Refined Products Services
|
4.3
|
2.6
|
||||||
Total
|
$
|
2,485.4
|
$
|
2,600.2
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
NGL Pipelines & Services
|
$
|
29.3
|
$
|
25.9
|
$
|
90.8
|
$
|
82.7
|
||||||||
Crude Oil Pipelines & Services
|
51.8
|
113.2
|
243.2
|
348.8
|
||||||||||||
Natural Gas Pipelines & Services
|
1.4
|
1.6
|
4.3
|
4.9
|
||||||||||||
Petrochemical & Refined Products Services
|
(0.5
|
)
|
(1.4
|
)
|
(2.2
|
)
|
(5.1
|
)
|
||||||||
Total
|
$
|
82.0
|
$
|
139.3
|
$
|
336.1
|
$
|
431.3
|
September 30, 2020
|
December 31, 2019
|
|||||||||||||||||||||||
|
Gross
Value
|
Accumulated
Amortization
|
Carrying
Value
|
Gross
Value
|
Accumulated
Amortization
|
Carrying
Value
|
||||||||||||||||||
NGL Pipelines & Services:
|
||||||||||||||||||||||||
Customer relationship intangibles
|
$
|
447.8
|
$
|
(217.0
|
)
|
$
|
230.8
|
$
|
447.8
|
$
|
(206.3
|
)
|
$
|
241.5
|
||||||||||
Contract-based intangibles
|
162.6
|
(52.2
|
)
|
110.4
|
162.6
|
(43.9
|
)
|
118.7
|
||||||||||||||||
Segment total
|
610.4
|
(269.2
|
)
|
341.2
|
610.4
|
(250.2
|
)
|
360.2
|
||||||||||||||||
Crude Oil Pipelines & Services:
|
||||||||||||||||||||||||
Customer relationship intangibles
|
2,203.5
|
(287.5
|
)
|
1,916.0
|
2,203.5
|
(243.5
|
)
|
1,960.0
|
||||||||||||||||
Contract-based intangibles
|
283.1
|
(246.7
|
)
|
36.4
|
276.9
|
(235.0
|
)
|
41.9
|
||||||||||||||||
Segment total
|
2,486.6
|
(534.2
|
)
|
1,952.4
|
2,480.4
|
(478.5
|
)
|
2,001.9
|
||||||||||||||||
Natural Gas Pipelines & Services:
|
||||||||||||||||||||||||
Customer relationship intangibles
|
1,350.3
|
(504.2
|
)
|
846.1
|
1,350.3
|
(481.6
|
)
|
868.7
|
||||||||||||||||
Contract-based intangibles
|
470.7
|
(401.7
|
)
|
69.0
|
468.0
|
(395.5
|
)
|
72.5
|
||||||||||||||||
Segment total
|
1,821.0
|
(905.9
|
)
|
915.1
|
1,818.3
|
(877.1
|
)
|
941.2
|
||||||||||||||||
Petrochemical & Refined Products Services:
|
||||||||||||||||||||||||
Customer relationship intangibles
|
181.4
|
(62.2
|
)
|
119.2
|
181.4
|
(57.5
|
)
|
123.9
|
||||||||||||||||
Contract-based intangibles
|
46.0
|
(25.3
|
)
|
20.7
|
46.0
|
(24.2
|
)
|
21.8
|
||||||||||||||||
Segment total
|
227.4
|
(87.5
|
)
|
139.9
|
227.4
|
(81.7
|
)
|
145.7
|
||||||||||||||||
Total intangible assets
|
$
|
5,145.4
|
$
|
(1,796.8
|
)
|
$
|
3,348.6
|
$
|
5,136.5
|
$
|
(1,687.5
|
)
|
$
|
3,449.0
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
NGL Pipelines & Services
|
$
|
6.2
|
$
|
7.3
|
$
|
19.0
|
$
|
25.4
|
||||||||
Crude Oil Pipelines & Services
|
16.0
|
25.1
|
55.7
|
71.2
|
||||||||||||
Natural Gas Pipelines & Services
|
9.0
|
10.3
|
28.8
|
31.2
|
||||||||||||
Petrochemical & Refined Products Services
|
1.9
|
2.1
|
5.8
|
6.5
|
||||||||||||
Total
|
$
|
33.1
|
$
|
44.8
|
$
|
109.3
|
$
|
134.3
|
Remainder
of 2020
|
2021
|
2022
|
2023
|
2024
|
||||||||||||||
$
|
45.1
|
$
|
145.5
|
$
|
162.3
|
$
|
169.9
|
$
|
165.7
|
September 30,
2020
|
December 31,
2019
|
|||||||
EPO senior debt obligations:
|
||||||||
Commercial Paper Notes, variable-rates
|
$
|
–
|
$
|
482.0
|
||||
Senior Notes Q, 5.25% fixed-rate, due January 2020
|
–
|
500.0
|
||||||
Senior Notes Y, 5.20% fixed-rate, due September 2020
|
–
|
1,000.0
|
||||||
Senior Notes TT, 2.80% fixed-rate, due February 2021
|
750.0
|
750.0
|
||||||
Senior Notes RR, 2.85% fixed-rate, due April 2021
|
575.0
|
575.0
|
||||||
September 2020 364-Day Revolving Credit Agreement, variable-rate, due September 2021
|
–
|
–
|
||||||
Senior Notes VV, 3.50% fixed-rate, due February 2022
|
750.0
|
750.0
|
||||||
Senior Notes CC, 4.05% fixed-rate, due February 2022
|
650.0
|
650.0
|
||||||
Senior Notes HH, 3.35% fixed-rate, due March 2023
|
1,250.0
|
1,250.0
|
||||||
Senior Notes JJ, 3.90% fixed-rate, due February 2024
|
850.0
|
850.0
|
||||||
Multi-Year Revolving Credit Agreement, variable-rate, due September 2024
|
–
|
–
|
||||||
Senior Notes MM, 3.75% fixed-rate, due February 2025
|
1,150.0
|
1,150.0
|
||||||
Senior Notes PP, 3.70% fixed-rate, due February 2026
|
875.0
|
875.0
|
||||||
Senior Notes SS, 3.95% fixed-rate, due February 2027
|
575.0
|
575.0
|
||||||
Senior Notes WW, 4.15% fixed-rate, due October 2028
|
1,000.0
|
1,000.0
|
||||||
Senior Notes YY, 3.125% fixed-rate, due July 2029
|
1,250.0
|
1,250.0
|
||||||
Senior Notes AAA, 2.80% fixed-rate, due January 2030
|
1,250.0
|
–
|
||||||
Senior Notes D, 6.875% fixed-rate, due March 2033
|
500.0
|
500.0
|
||||||
Senior Notes H, 6.65% fixed-rate, due October 2034
|
350.0
|
350.0
|
||||||
Senior Notes J, 5.75% fixed-rate, due March 2035
|
250.0
|
250.0
|
||||||
Senior Notes W, 7.55% fixed-rate, due April 2038
|
399.6
|
399.6
|
||||||
Senior Notes R, 6.125% fixed-rate, due October 2039
|
600.0
|
600.0
|
||||||
Senior Notes Z, 6.45% fixed-rate, due September 2040
|
600.0
|
600.0
|
||||||
Senior Notes BB, 5.95% fixed-rate, due February 2041
|
750.0
|
750.0
|
||||||
Senior Notes DD, 5.70% fixed-rate, due February 2042
|
600.0
|
600.0
|
||||||
Senior Notes EE, 4.85% fixed-rate, due August 2042
|
750.0
|
750.0
|
||||||
Senior Notes GG, 4.45% fixed-rate, due February 2043
|
1,100.0
|
1,100.0
|
||||||
Senior Notes II, 4.85% fixed-rate, due March 2044
|
1,400.0
|
1,400.0
|
||||||
Senior Notes KK, 5.10% fixed-rate, due February 2045
|
1,150.0
|
1,150.0
|
||||||
Senior Notes QQ, 4.90% fixed-rate, due May 2046
|
975.0
|
975.0
|
||||||
Senior Notes UU, 4.25% fixed-rate, due February 2048
|
1,250.0
|
1,250.0
|
||||||
Senior Notes XX, 4.80% fixed-rate, due February 2049
|
1,250.0
|
1,250.0
|
||||||
Senior Notes ZZ, 4.20% fixed-rate, due January 2050
|
1,250.0
|
1,250.0
|
||||||
Senior Notes BBB, 3.70% fixed-rate, due January 2051
|
1,000.0
|
–
|
||||||
Senior Notes DDD, 3.20% fixed-rate, due February 2052
|
1,000.0
|
–
|
||||||
Senior Notes NN, 4.95% fixed-rate, due October 2054
|
400.0
|
400.0
|
||||||
Senior Notes CCC, 3.95% fixed rate, due January 2060
|
1,000.0
|
–
|
||||||
TEPPCO senior debt obligations:
|
||||||||
TEPPCO Senior Notes, 7.55% fixed-rate, due April 2038
|
0.4
|
0.4
|
||||||
Total principal amount of senior debt obligations
|
27,500.0
|
25,232.0
|
||||||
EPO Junior Subordinated Notes C, variable-rate, due June 2067 (1)
|
232.2
|
232.2
|
||||||
EPO Junior Subordinated Notes D, fixed/variable-rate, due August 2077 (2)
|
700.0
|
700.0
|
||||||
EPO Junior Subordinated Notes E, fixed/variable-rate, due August 2077 (3)
|
1,000.0
|
1,000.0
|
||||||
EPO Junior Subordinated Notes F, fixed/variable-rate, due February 2078 (4)
|
700.0
|
700.0
|
||||||
TEPPCO Junior Subordinated Notes, variable-rate, due June 2067 (1)
|
14.2
|
14.2
|
||||||
Total principal amount of senior and junior debt obligations
|
30,146.4
|
27,878.4
|
||||||
Other, non-principal amounts
|
(284.4
|
)
|
(253.3
|
)
|
||||
Less current maturities of debt
|
(1,325.0
|
)
|
(1,981.9
|
)
|
||||
Total long-term debt
|
$
|
28,537.0
|
$
|
25,643.2
|
(1)
|
Variable rate is reset quarterly and based on 3-month London Interbank Offered Rate ("LIBOR"), plus 2.778%.
|
(2)
|
Fixed rate of 4.875% through August 15, 2022; thereafter, a variable rate reset quarterly and based on 3-month LIBOR plus 2.986%.
|
(3)
|
Fixed rate of 5.250% through August 15, 2027; thereafter, a variable rate reset quarterly and based on 3-month LIBOR plus 3.033%.
|
(4)
|
Fixed rate of 5.375% through February 14, 2028; thereafter, a variable rate reset quarterly and based on 3-month LIBOR plus 2.57%.
|
|
Range of Interest
Rates Paid
|
Weighted-Average
Interest Rate Paid
|
Commercial Paper Notes
|
1.78% to 2.08%
|
1.86%
|
EPO Junior Subordinated Notes C and TEPPCO Junior Subordinated Notes
|
3.02% to 4.68%
|
3.87%
|
|
Scheduled Maturities of Debt
|
|||||||||||||||||||||||||||
|
Total
|
Remainder
of 2020
|
2021
|
2022
|
2023
|
2024
|
Thereafter
|
|||||||||||||||||||||
Principal amount of senior and junior debt obligations
|
$
|
30,146.4
|
$
|
–
|
$
|
1,325.0
|
$
|
1,400.0
|
$
|
1,250.0
|
$
|
850.0
|
$
|
25,321.4
|
Common units outstanding at December 31, 2019
|
2,189,226,130
|
|||
Common units issued to Skyline North Americas, Inc. in connection with
settlement of Liquidity Option in March 2020
|
54,807,352
|
|||
Treasury units acquired in connection with settlement of Liquidity Option in March 2020
|
(54,807,352
|
)
|
||
Common unit repurchases under 2019 Buyback Program
|
(6,357,739
|
)
|
||
Common units issued in connection with the vesting of phantom unit awards, net
|
2,912,214
|
|||
Other
|
19,638
|
|||
Common units outstanding at March 31, 2020
|
2,185,800,243
|
|||
Common units issued in connection with the vesting of phantom unit awards, net
|
96,190
|
|||
Common units outstanding at June 30, 2020
|
2,185,896,433
|
|||
Common units exchanged for preferred units in September 2020,
with the common units received being immediately cancelled
|
(1,120,588
|
)
|
||
Common unit repurchases under 2019 Buyback Program
|
(1,984,507
|
)
|
||
Common units issued in connection with the vesting of phantom unit awards, net
|
89,641
|
|||
Units outstanding at September 30, 2020
|
2,182,880,979
|
•
|
With respect to distribution and liquidation rights, the preferred units rank senior to the Partnership’s common units. Preferred units held by persons other than the Partnership, its subsidiaries and its affiliates generally will vote on an as-converted basis with the Partnership’s common units and have certain class voting rights with respect to certain protective matters.
|
•
|
Holders of the preferred units are entitled to receive cumulative quarterly distributions at a rate of 7.25% per annum. The Partnership is prohibited from paying distributions on its common units unless full cumulative distributions on the preferred units are paid or set aside for payment. The Partnership may satisfy its obligation to pay distributions to the preferred unitholders through the issuance, in whole or in part, of additional preferred units (referred to as paid-in kind or “PIK” distributions), with the remainder in cash, subject to certain rights of a holder to elect all cash and other conditions as described in the Amended Partnership Agreement. The exchange by OTA of its common units for PIK-eligible preferred units enables the Partnership to more effectively manage its consolidated cash balances.
|
•
|
Subject to certain limitations, each preferred unitholder may elect to convert its preferred units on or after September 30, 2025 into a number of the Partnership’s common units equal to (a) the number of preferred units to be converted multiplied by (b) the quotient of (i) $1,000 plus any accrued and unpaid distributions per preferred unit, divided by (ii) 92.5% of the volume-weighted average price of the Partnership’s common units at the time of conversion (as defined in the underlying agreements). In addition, each preferred unitholder may convert its preferred units into common units if EPO’s senior notes cease to have an investment grade rating or a Change of Control (as defined in the Amended Partnership Agreement) occurs, in each case based on the conversion ratio specified in the Amended Partnership Agreement.
|
•
|
The Partnership may elect to redeem the preferred units for cash, in whole or in part, based on a redemption price outlined in the following schedule, plus any accrued and unpaid distributions at the redemption date:
|
•
|
$1,100 per preferred unit from September 30, 2020 through September 29, 2022;
|
•
|
$1,070 per preferred unit from September 30, 2022 through September 29, 2024;
|
•
|
$1,030 per preferred unit from September 30, 2024 through September 29, 2025;
|
•
|
$1,010 per preferred unit from September 30, 2025 through September 29, 2026; and
|
•
|
$1,000 per preferred unit on or after September 30, 2026; however,
|
•
|
if a Change of Control event occurs prior to September 30, 2026, the redemption price is $1,010 per preferred unit.
|
|
Cash Flow Hedges
|
|||||||||||||||
|
Commodity
Derivative
Instruments
|
Interest Rate
Derivative
Instruments
|
Other
|
Total
|
||||||||||||
Accumulated Other Comprehensive Income, December 31, 2019
|
$
|
55.1
|
$
|
13.9
|
$
|
2.4
|
$
|
71.4
|
||||||||
Other comprehensive income (loss) for period, before reclassifications
|
392.7
|
(207.7
|
)
|
(0.1
|
)
|
184.9
|
||||||||||
Reclassification of losses (gains) to net income during period
|
(334.8
|
)
|
29.2
|
–
|
(305.6
|
)
|
||||||||||
Total other comprehensive income (loss) for period
|
57.9
|
(178.5
|
)
|
(0.1
|
)
|
(120.7
|
)
|
|||||||||
Accumulated Other Comprehensive Income (Loss), September 30, 2020
|
$
|
113.0
|
$
|
(164.6
|
)
|
$
|
2.3
|
$
|
(49.3
|
)
|
Cash Flow Hedges
|
||||||||||||||||
|
Commodity
Derivative
Instruments
|
Interest Rate
Derivative
Instruments
|
Other
|
Total
|
||||||||||||
Accumulated Other Comprehensive Income (Loss), December 31, 2018
|
$
|
152.7
|
$
|
(104.8
|
)
|
$
|
3.0
|
$
|
50.9
|
|||||||
Other comprehensive income (loss) for period, before reclassifications
|
58.6
|
(23.8
|
)
|
(0.6
|
)
|
34.2
|
||||||||||
Reclassification of losses (gains) to net income during period
|
(152.0
|
)
|
27.8
|
–
|
(124.2
|
)
|
||||||||||
Total other comprehensive income (loss) for period
|
(93.4
|
)
|
4.0
|
(0.6
|
)
|
(90.0
|
)
|
|||||||||
Accumulated Other Comprehensive Income (Loss), September 30, 2019
|
$
|
59.3
|
$
|
(100.8
|
)
|
$
|
2.4
|
$
|
(39.1
|
)
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
|||||||||||||||
Losses (gains) on cash flow hedges:
|
Location
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Interest rate derivatives
|
Interest expense
|
$
|
9.9
|
$
|
9.4
|
$
|
29.2
|
$
|
27.8
|
||||||||
Commodity derivatives
|
Revenue
|
19.5
|
(93.6
|
)
|
(344.7
|
)
|
(161.4
|
)
|
|||||||||
Commodity derivatives
|
Operating costs and expenses
|
10.0
|
2.1
|
9.9
|
9.4
|
||||||||||||
Total
|
|
$
|
39.4
|
$
|
(82.1
|
)
|
$
|
(305.6
|
)
|
$
|
(124.2
|
)
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
NGL Pipelines & Services:
|
||||||||||||||||
Sales of NGLs and related products
|
$
|
2,048.4
|
$
|
2,624.9
|
$
|
6,401.7
|
$
|
7,955.5
|
||||||||
Segment midstream services:
|
||||||||||||||||
Natural gas processing and fractionation
|
205.4
|
279.6
|
575.8
|
837.3
|
||||||||||||
Transportation
|
254.7
|
248.2
|
769.6
|
767.4
|
||||||||||||
Storage and terminals
|
105.5
|
99.4
|
311.3
|
291.0
|
||||||||||||
Total segment midstream services
|
565.6
|
627.2
|
1,656.7
|
1,895.7
|
||||||||||||
Total NGL Pipelines & Services
|
2,614.0
|
3,252.1
|
8,058.4
|
9,851.2
|
||||||||||||
Crude Oil Pipelines & Services:
|
||||||||||||||||
Sales of crude oil
|
1,216.1
|
2,130.0
|
4,059.7
|
6,990.1
|
||||||||||||
Segment midstream services:
|
||||||||||||||||
Transportation
|
189.3
|
209.1
|
603.5
|
598.1
|
||||||||||||
Storage and terminals
|
116.2
|
139.2
|
360.5
|
364.0
|
||||||||||||
Total segment midstream services
|
305.5
|
348.3
|
964.0
|
962.1
|
||||||||||||
Total Crude Oil Pipelines & Services
|
1,521.6
|
2,478.3
|
5,023.7
|
7,952.2
|
||||||||||||
Natural Gas Pipelines & Services:
|
||||||||||||||||
Sales of natural gas
|
350.7
|
440.0
|
1,097.6
|
1,627.1
|
||||||||||||
Segment midstream services:
|
||||||||||||||||
Transportation
|
256.2
|
275.5
|
765.1
|
835.2
|
||||||||||||
Total segment midstream services
|
256.2
|
275.5
|
765.1
|
835.2
|
||||||||||||
Total Natural Gas Pipelines & Services
|
606.9
|
715.5
|
1,862.7
|
2,462.3
|
||||||||||||
Petrochemical & Refined Products Services:
|
||||||||||||||||
Sales of petrochemicals and refined products
|
1,966.2
|
1,299.0
|
4,593.7
|
3,867.3
|
||||||||||||
Segment midstream services:
|
||||||||||||||||
Fractionation and isomerization
|
54.6
|
43.2
|
129.0
|
125.5
|
||||||||||||
Transportation, including marine logistics
|
115.2
|
134.4
|
365.5
|
393.2
|
||||||||||||
Storage and terminals
|
43.5
|
41.6
|
122.5
|
132.2
|
||||||||||||
Total segment midstream services
|
213.3
|
219.2
|
617.0
|
650.9
|
||||||||||||
Total Petrochemical & Refined Products Services
|
2,179.5
|
1,518.2
|
5,210.7
|
4,518.2
|
||||||||||||
Total consolidated revenues
|
$
|
6,922.0
|
$
|
7,964.1
|
$
|
20,155.5
|
$
|
24,783.9
|
Contract Asset
|
Location
|
Balance
|
|||
Unbilled revenue (current amount)
|
Prepaid and other current assets
|
$
|
173.1
|
||
Total
|
$
|
173.1
|
Contract Liability
|
Location
|
Balance
|
|||
Deferred revenue (current amount)
|
Other current liabilities
|
$
|
162.0
|
||
Deferred revenue (noncurrent)
|
Other long-term liabilities
|
206.4
|
|||
Total
|
$
|
368.4
|
Unbilled
Revenue
|
Deferred
Revenue
|
|||||||
Balance at December 31, 2019
|
$
|
17.6
|
$
|
314.9
|
||||
Amount included in opening balance transferred to other accounts during period (1)
|
(17.6
|
)
|
(101.7
|
)
|
||||
Amount recorded during period (2)
|
253.0
|
486.7
|
||||||
Amounts recorded during period transferred to other accounts (1)
|
(79.9
|
)
|
(325.5
|
)
|
||||
Other changes
|
–
|
(6.0
|
)
|
|||||
Balance at September 30, 2020
|
$
|
173.1
|
$
|
368.4
|
(1)
|
Unbilled revenues are transferred to accounts receivable once we have an unconditional right to consideration from the customer. Deferred revenues are recognized as revenue upon satisfaction of our performance obligation to the customer.
|
(2)
|
Unbilled revenue represents revenue that has been recognized upon satisfaction of a performance obligation, but cannot be contractually invoiced (or billed) to the customer at the balance sheet date until a future period. Deferred revenue is recorded when payment is received from a customer prior to our satisfaction of the associated performance obligation.
|
Period
|
Fixed
Consideration
|
|||
Three Months Ended December 31, 2020
|
$
|
988.5
|
||
One Year Ended December 31, 2021
|
3,804.7
|
|||
One Year Ended December 31, 2022
|
3,375.9
|
|||
One Year Ended December 31, 2023
|
3,016.8
|
|||
One Year Ended December 31, 2024
|
2,848.3
|
|||
Thereafter
|
15,315.9
|
|||
Total
|
$
|
29,350.1
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Operating income
|
$
|
1,382.5
|
$
|
1,474.2
|
$
|
4,326.9
|
$
|
4,660.7
|
||||||||
Adjustments to reconcile operating income to total segment gross operating margin
(addition or subtraction indicated by sign):
|
||||||||||||||||
Depreciation, amortization and accretion expense in operating costs and expenses
|
484.2
|
467.1
|
1,461.3
|
1,380.8
|
||||||||||||
Asset impairment and related charges in operating costs and expenses
|
77.0
|
39.4
|
90.4
|
51.2
|
||||||||||||
Net gains attributable to asset sales in operating costs and expenses
|
(0.6
|
)
|
(0.1
|
)
|
(2.1
|
)
|
(2.6
|
)
|
||||||||
General and administrative costs
|
50.3
|
55.5
|
162.8
|
160.2
|
||||||||||||
Non-refundable payments received from shippers attributable to make-up rights (1)
|
49.3
|
20.8
|
79.1
|
34.3
|
||||||||||||
Subsequent recognition of revenues attributable to make-up rights (2)
|
(9.4
|
)
|
(5.5
|
)
|
(25.0
|
)
|
(18.6
|
)
|
||||||||
Total segment gross operating margin
|
$
|
2,033.3
|
$
|
2,051.4
|
$
|
6,093.4
|
$
|
6,266.0
|
(1)
|
Since make-up rights entail a future performance obligation by the pipeline to the shipper, these receipts are recorded as deferred revenue for GAAP purposes; however, these receipts are included in gross operating margin in the period of receipt since they are nonrefundable to the shipper.
|
(2)
|
As deferred revenues attributable to make-up rights are subsequently recognized as revenue under GAAP, gross operating margin must be adjusted to remove such amounts to prevent duplication since the associated non-refundable payments were previously included in gross operating margin.
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Gross operating margin by segment:
|
||||||||||||||||
NGL Pipelines & Services
|
$
|
1,028.1
|
$
|
1,008.3
|
$
|
3,038.2
|
$
|
2,933.8
|
||||||||
Crude Oil Pipelines & Services
|
481.8
|
496.2
|
1,569.1
|
1,671.7
|
||||||||||||
Natural Gas Pipelines & Services
|
208.4
|
258.5
|
701.1
|
824.6
|
||||||||||||
Petrochemical & Refined Products Services
|
315.0
|
288.4
|
785.0
|
835.9
|
||||||||||||
Total segment gross operating margin
|
$
|
2,033.3
|
$
|
2,051.4
|
$
|
6,093.4
|
$
|
6,266.0
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Mark-to-market gains (losses) in gross operating margin:
|
||||||||||||||||
NGL Pipelines & Services
|
$
|
(12.0
|
)
|
$
|
(0.7
|
)
|
$
|
11.4
|
$
|
(0.1
|
)
|
|||||
Crude Oil Pipelines & Services
|
10.1
|
9.8
|
28.9
|
95.0
|
||||||||||||
Natural Gas Pipelines & Services
|
(14.8
|
)
|
1.3
|
10.0
|
1.3
|
|||||||||||
Petrochemical & Refined Products Services
|
(21.0
|
)
|
(1.3
|
)
|
3.4
|
(3.3
|
)
|
|||||||||
Total mark-to-market impact on gross operating margin
|
(37.7
|
)
|
9.1
|
53.7
|
92.9
|
|||||||||||
Mark-to-market loss in interest expense
|
–
|
(94.9
|
)
|
–
|
(94.9
|
)
|
||||||||||
Total
|
$
|
(37.7
|
)
|
$
|
(85.8
|
)
|
$
|
53.7
|
$
|
(2.0
|
)
|
|
Reportable Business Segments
|
|||||||||||||||||||||||
|
NGL
Pipelines
& Services
|
Crude Oil
Pipelines
& Services
|
Natural Gas
Pipelines
& Services
|
Petrochemical
& Refined Products Services
|
Adjustments
and
Eliminations
|
Consolidated
Total
|
||||||||||||||||||
Revenues from third parties:
|
||||||||||||||||||||||||
Three months ended September 30, 2020
|
$
|
2,612.4
|
$
|
1,518.0
|
$
|
604.6
|
$
|
2,179.5
|
$
|
–
|
$
|
6,914.5
|
||||||||||||
Three months ended September 30, 2019
|
3,250.1
|
2,467.9
|
712.3
|
1,518.2
|
–
|
7,948.5
|
||||||||||||||||||
Nine months ended September 30, 2020
|
8,053.4
|
5,007.0
|
1,855.2
|
5,210.7
|
–
|
20,126.3
|
||||||||||||||||||
Nine months ended September 30, 2019
|
9,843.9
|
7,916.5
|
2,451.6
|
4,518.2
|
–
|
24,730.2
|
||||||||||||||||||
Revenues from related parties:
|
||||||||||||||||||||||||
Three months ended September 30, 2020
|
1.6
|
3.6
|
2.3
|
–
|
–
|
7.5
|
||||||||||||||||||
Three months ended September 30, 2019
|
2.0
|
10.4
|
3.2
|
–
|
–
|
15.6
|
||||||||||||||||||
Nine months ended September 30, 2020
|
5.0
|
16.7
|
7.5
|
–
|
–
|
29.2
|
||||||||||||||||||
Nine months ended September 30, 2019
|
7.3
|
35.7
|
10.7
|
–
|
–
|
53.7
|
||||||||||||||||||
Intersegment and intrasegment revenues:
|
||||||||||||||||||||||||
Three months ended September 30, 2020
|
7,098.2
|
6,422.5
|
117.0
|
1,297.8
|
(14,935.5
|
)
|
–
|
|||||||||||||||||
Three months ended September 30, 2019
|
4,729.3
|
9,479.7
|
141.7
|
558.1
|
(14,908.8
|
)
|
–
|
|||||||||||||||||
Nine months ended September 30, 2020
|
18,826.6
|
18,302.7
|
325.0
|
2,815.6
|
(40,269.9
|
)
|
–
|
|||||||||||||||||
Nine months ended September 30, 2019
|
14,715.5
|
26,818.0
|
500.2
|
1,890.4
|
(43,924.1
|
)
|
–
|
|||||||||||||||||
Total revenues:
|
||||||||||||||||||||||||
Three months ended September 30, 2020
|
9,712.2
|
7,944.1
|
723.9
|
3,477.3
|
(14,935.5
|
)
|
6,922.0
|
|||||||||||||||||
Three months ended September 30, 2019
|
7,981.4
|
11,958.0
|
857.2
|
2,076.3
|
(14,908.8
|
)
|
7,964.1
|
|||||||||||||||||
Nine months ended September 30, 2020
|
26,885.0
|
23,326.4
|
2,187.7
|
8,026.3
|
(40,269.9
|
)
|
20,155.5
|
|||||||||||||||||
Nine months ended September 30, 2019
|
24,566.7
|
34,770.2
|
2,962.5
|
6,408.6
|
(43,924.1
|
)
|
24,783.9
|
|||||||||||||||||
Equity in income (loss) of unconsolidated affiliates:
|
||||||||||||||||||||||||
Three months ended September 30, 2020
|
29.3
|
51.8
|
1.4
|
(0.5
|
)
|
–
|
82.0
|
|||||||||||||||||
Three months ended September 30, 2019
|
25.9
|
113.2
|
1.6
|
(1.4
|
)
|
–
|
139.3
|
|||||||||||||||||
Nine months ended September 30, 2020
|
90.8
|
243.2
|
4.3
|
(2.2
|
)
|
–
|
336.1
|
|||||||||||||||||
Nine months ended September 30, 2019
|
82.7
|
348.8
|
4.9
|
(5.1
|
)
|
–
|
431.3
|
|
Reportable Business Segments
|
|||||||||||||||||||||||
|
NGL
Pipelines
& Services
|
Crude Oil
Pipelines
& Services
|
Natural Gas
Pipelines
& Services
|
Petrochemical
& Refined
Products
Services
|
Adjustments
and
Eliminations
|
Consolidated
Total
|
||||||||||||||||||
Property, plant and equipment, net:
(see Note 4)
|
||||||||||||||||||||||||
At September 30, 2020
|
$
|
17,309.6
|
$
|
6,503.6
|
$
|
8,383.0
|
$
|
7,695.0
|
$
|
2,468.9
|
$
|
42,360.1
|
||||||||||||
At December 31, 2019
|
16,652.1
|
6,324.4
|
8,432.5
|
7,553.2
|
2,641.2
|
41,603.4
|
||||||||||||||||||
Investments in unconsolidated affiliates:
(see Note 5)
|
||||||||||||||||||||||||
At September 30, 2020
|
676.4
|
1,774.8
|
29.9
|
4.3
|
–
|
2,485.4
|
||||||||||||||||||
At December 31, 2019
|
703.8
|
1,866.5
|
27.3
|
2.6
|
–
|
2,600.2
|
||||||||||||||||||
Intangible assets, net: (see Note 6)
|
||||||||||||||||||||||||
At September 30, 2020
|
341.2
|
1,952.4
|
915.1
|
139.9
|
–
|
3,348.6
|
||||||||||||||||||
At December 31, 2019
|
360.2
|
2,001.9
|
941.2
|
145.7
|
–
|
3,449.0
|
||||||||||||||||||
Goodwill: (see Note 6)
|
||||||||||||||||||||||||
At September 30, 2020
|
2,651.7
|
1,841.0
|
296.3
|
956.2
|
–
|
5,745.2
|
||||||||||||||||||
At December 31, 2019
|
2,651.7
|
1,841.0
|
296.3
|
956.2
|
–
|
5,745.2
|
||||||||||||||||||
Segment assets:
|
||||||||||||||||||||||||
At September 30, 2020
|
20,978.9
|
12,071.8
|
9,624.3
|
8,795.4
|
2,468.9
|
53,939.3
|
||||||||||||||||||
At December 31, 2019
|
20,367.8
|
12,033.8
|
9,697.3
|
8,657.7
|
2,641.2
|
53,397.8
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Consolidated revenues:
|
||||||||||||||||
NGL Pipelines & Services
|
$
|
2,614.0
|
$
|
3,252.1
|
$
|
8,058.4
|
$
|
9,851.2
|
||||||||
Crude Oil Pipelines & Services
|
1,521.6
|
2,478.3
|
5,023.7
|
7,952.2
|
||||||||||||
Natural Gas Pipelines & Services
|
606.9
|
715.5
|
1,862.7
|
2,462.3
|
||||||||||||
Petrochemical & Refined Products Services
|
2,179.5
|
1,518.2
|
5,210.7
|
4,518.2
|
||||||||||||
Total consolidated revenues
|
$
|
6,922.0
|
$
|
7,964.1
|
$
|
20,155.5
|
$
|
24,783.9
|
||||||||
|
||||||||||||||||
Consolidated costs and expenses
|
||||||||||||||||
Operating costs and expenses:
|
||||||||||||||||
Cost of sales
|
$
|
4,313.7
|
$
|
5,276.5
|
$
|
12,331.9
|
$
|
16,721.5
|
||||||||
Other operating costs and expenses (1)
|
696.9
|
790.8
|
2,120.4
|
2,243.4
|
||||||||||||
Depreciation, amortization and accretion
|
484.2
|
467.1
|
1,461.3
|
1,380.8
|
||||||||||||
Asset impairment and related charges
|
77.0
|
39.4
|
90.4
|
51.2
|
||||||||||||
Net gains attributable to asset sales
|
(0.6
|
)
|
(0.1
|
)
|
(2.1
|
)
|
(2.6
|
)
|
||||||||
General and administrative costs
|
50.3
|
55.5
|
162.8
|
160.2
|
||||||||||||
Total consolidated costs and expenses
|
$
|
5,621.5
|
$
|
6,629.2
|
$
|
16,164.7
|
$
|
20,554.5
|
(1)
|
Represents the cost of operating our plants, pipelines and other fixed assets excluding: depreciation, amortization and accretion charges; asset impairment and related charges; and net losses (or gains) attributable to asset sales.
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Deferred tax benefit (expense) attributable to OTA
|
$
|
21.3
|
$
|
158.0
|
||||||||||||
Texas Margin Tax
|
(7.2
|
)
|
$
|
(15.5
|
)
|
(21.9
|
)
|
$
|
(36.5
|
)
|
||||||
Other
|
5.0
|
0.1
|
2.5
|
(0.9
|
)
|
|||||||||||
Benefit from (provision for) income taxes
|
$
|
19.1
|
$
|
(15.4
|
)
|
$
|
138.6
|
$
|
(37.4
|
)
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Current portion of income tax benefit (provision):
|
||||||||||||||||
Federal
|
$
|
5.3
|
$
|
0.4
|
$
|
3.0
|
$
|
(0.1
|
)
|
|||||||
State
|
(4.7
|
)
|
(9.1
|
)
|
(13.4
|
)
|
(25.6
|
)
|
||||||||
Foreign
|
0.2
|
–
|
–
|
(0.8
|
)
|
|||||||||||
Total current portion
|
0.8
|
(8.7
|
)
|
(10.4
|
)
|
(26.5
|
)
|
|||||||||
Deferred portion of income tax benefit (provision):
|
||||||||||||||||
Federal
|
18.7
|
(0.3
|
)
|
145.1
|
(0.2
|
)
|
||||||||||
State
|
(0.4
|
)
|
(6.4
|
)
|
3.9
|
(10.9
|
)
|
|||||||||
Foreign
|
–
|
–
|
–
|
0.2
|
||||||||||||
Total deferred portion
|
18.3
|
(6.7
|
)
|
149.0
|
(10.9
|
)
|
||||||||||
Total benefit from (provision for) income taxes
|
$
|
19.1
|
$
|
(15.4
|
)
|
$
|
138.6
|
$
|
(37.4
|
)
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Pre-Tax Net Book Income (“NBI”)
|
$
|
1,064.9
|
$
|
1,060.2
|
$
|
3,381.2
|
$
|
3,599.1
|
||||||||
Texas Margin Tax (1)
|
(7.2
|
)
|
(15.5
|
)
|
(21.9
|
)
|
(36.5
|
)
|
||||||||
State income tax benefit (provision), net of federal benefit (2)
|
1.6
|
–
|
9.7
|
(0.3
|
)
|
|||||||||||
Federal income tax benefit (provision) computed by applying
the federal statutory rate to NBI of corporate entities
|
25.1
|
0.1
|
83.4
|
(0.6
|
)
|
|||||||||||
Federal benefit attributable to settlement of
Liquidity Option (2)
|
–
|
–
|
67.8
|
–
|
||||||||||||
Other differences
|
(0.4
|
)
|
–
|
(0.4
|
)
|
–
|
||||||||||
Benefit from (provision for) income taxes
|
$
|
19.1
|
$
|
(15.4
|
)
|
$
|
138.6
|
$
|
(37.4
|
)
|
||||||
Effective income tax rate
|
1.8
|
%
|
(1.5
|
)%
|
4.1
|
%
|
(1.0
|
)%
|
(1)
|
Although the Texas Margin Tax is not considered a state income tax, it has the characteristics of an income tax since it is determined by applying a tax rate to a base that considers our Texas-sourced revenues and expenses.
|
(2)
|
The total benefit recognized in income tax expense on March 5, 2020 from settlement of the Liquidity Option was $72.2 million, which is comprised of $4.4 million of state income tax benefit and $67.8 million of federal income tax benefit.
|
September 30,
|
December 31,
|
|||||||
|
2020
|
2019
|
||||||
Deferred tax liabilities:
|
||||||||
Attributable to investment in OTA
|
$
|
353.9
|
||||||
Attributable to property, plant and equipment
|
107.9
|
$
|
100.2
|
|||||
Attributable to investments in other entities
|
4.2
|
3.3
|
||||||
Total deferred tax liabilities
|
466.0
|
103.5
|
||||||
Less deferred tax assets:
|
||||||||
Net operating loss carryovers (1)
|
0.1
|
0.1
|
||||||
Temporary differences related to Texas Margin Tax
|
2.6
|
3.0
|
||||||
Total deferred tax assets
|
2.7
|
3.1
|
||||||
Total net deferred tax liabilities
|
$
|
463.3
|
$
|
100.4
|
(1)
|
These losses expire in various years between 2020 and 2037 and are subject to limitations on their utilization.
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
BASIC EARNINGS PER COMMON UNIT
|
||||||||||||||||
Net income attributable to common unitholders
|
$
|
1,052.6
|
$
|
1,019.2
|
$
|
3,437.4
|
$
|
3,494.4
|
||||||||
Earnings allocated to phantom unit awards (1)
|
(7.5
|
)
|
(6.1
|
)
|
(24.9
|
)
|
(21.3
|
)
|
||||||||
Net income allocated to common unitholders
|
$
|
1,045.1
|
$
|
1,013.1
|
$
|
3,412.5
|
$
|
3,473.1
|
||||||||
|
||||||||||||||||
Basic weighted-average number of common units outstanding
|
2,185.5
|
2,189.1
|
2,186.7
|
2,188.4
|
||||||||||||
|
||||||||||||||||
Basic earnings per common unit
|
$
|
0.48
|
$
|
0.46
|
$
|
1.56
|
$
|
1.59
|
||||||||
|
||||||||||||||||
DILUTED EARNINGS PER COMMON UNIT
|
||||||||||||||||
Net income attributable to common unitholders
|
$
|
1,052.6
|
$
|
1,019.2
|
$
|
3,437.4
|
$
|
3,494.4
|
||||||||
|
||||||||||||||||
Diluted weighted-average number of units outstanding:
|
||||||||||||||||
Common units
|
2,185.5
|
2,189.1
|
2,186.7
|
2,188.4
|
||||||||||||
Phantom units (2)
|
15.9
|
13.2
|
15.7
|
13.1
|
||||||||||||
Preferred units (2)
|
-
|
*
|
–
|
-
|
*
|
–
|
||||||||||
Total
|
2,201.4
|
2,202.3
|
2,202.4
|
2,201.5
|
||||||||||||
|
||||||||||||||||
Diluted earnings per common unit
|
$
|
0.48
|
$
|
0.46
|
$
|
1.56
|
$
|
1.59
|
||||||||
* Amount is negligible
|
(1)
|
Phantom units are considered participating securities for purposes of computing basic earnings per unit. See Note 13 for information regarding the phantom units.
|
(2)
|
We use the “if-converted method” to determine the potential dilutive effect of the vesting of phantom units and the conversion of preferred units outstanding. See Note 8 for information regarding the preferred units issued on September 30, 2020. Since the preferred units were issued on the last day of the third quarter of 2020, their weighted-average dilutive impact on earnings per unit for the three and nine months ended September 30, 2020 was negligible.
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Equity-classified awards:
|
||||||||||||||||
Phantom unit awards
|
$
|
37.3
|
$
|
34.7
|
$
|
113.1
|
$
|
99.6
|
||||||||
Profits interest awards
|
2.2
|
2.5
|
7.2
|
8.1
|
||||||||||||
Liability-classified awards
|
–
|
0.1
|
–
|
0.1
|
||||||||||||
Total
|
$
|
39.5
|
$
|
37.3
|
$
|
120.3
|
$
|
107.8
|
|
Number of
Units
|
Weighted-
Average Grant
Date Fair Value
per Unit (1)
|
||||||
Phantom unit awards at December 31, 2019
|
12,974,684
|
$
|
27.21
|
|||||
Granted (2)
|
7,403,345
|
$
|
25.71
|
|||||
Vested
|
(4,447,460
|
)
|
$
|
26.35
|
||||
Forfeited
|
(130,774
|
)
|
$
|
26.74
|
||||
Phantom unit awards at September 30, 2020
|
15,799,795
|
$
|
26.75
|
(1)
|
Determined by dividing the aggregate grant date fair value of awards (before an allowance for forfeitures) by the number of awards issued.
|
(2)
|
The aggregate grant date fair value of phantom unit awards issued during 2020 was $190.4 million based on a grant date market price of EPD common units ranging from $17.24 to $25.76 per unit. An estimated annual forfeiture rate of 2.4% was applied to these awards.
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Cash payments made in connection with DERs
|
$
|
7.1
|
$
|
5.9
|
$
|
20.0
|
$
|
16.4
|
||||||||
Total intrinsic value of phantom unit awards that vested during period
|
2.0
|
7.2
|
113.4
|
108.9
|
Hedged Transaction
|
Number and Type
of Derivatives
Outstanding
|
Notional
Amount
|
Expected
Settlement
Date
|
Weighted-Average
Fixed Rate
Locked
|
Accounting
Treatment
|
Future long-term debt offering
|
1 forward-starting swap
|
$75.0
|
4/2021
|
2.41%
|
Cash flow hedge
|
Future long-term debt offering
|
5 forward-starting swaps
|
$500.0
|
4/2021
|
2.13%
|
Cash flow hedge
|
Future long-term debt offering
|
2 forward-starting swaps (1)
|
$150.0
|
2/2022
|
1.72%
|
Cash flow hedge
|
Future long-term debt offering
|
1 forward starting swap (1)
|
$100.0
|
4/2021
|
1.46%
|
Cash flow hedge
|
Future long-term debt offering
|
2 forward starting swaps (1)
|
$150.0
|
2/2022
|
1.48%
|
Cash flow hedge
|
Future long-term debt offering
|
2 forward starting swaps (1)
|
$100.0
|
2/2022
|
0.95%
|
Cash flow hedge
|
(1)
|
These swaps were entered into during the first quarter of 2020.
|
|
Volume (1)
|
Accounting
|
|
Derivative Purpose
|
Current (2)
|
Long-Term (2)
|
Treatment
|
Derivatives designated as hedging instruments:
|
|||
Natural gas processing:
|
|||
Forecasted natural gas purchases for plant thermal reduction (billion cubic feet (“Bcf”))
|
7.4
|
n/a
|
Cash flow hedge
|
Forecasted sales of NGLs (million barrels (“MMBbls”)) (3)
|
1.1
|
n/a
|
Cash flow hedge
|
Octane enhancement:
|
|||
Forecasted purchase of NGLs (MMBbls)
|
0.3
|
n/a
|
Cash flow hedge
|
Forecasted sales of octane enhancement products (MMBbls)
|
1.2
|
n/a
|
Cash flow hedge
|
Natural gas marketing:
|
|||
Natural gas storage inventory management activities (Bcf)
|
5.2
|
n/a
|
Fair value hedge
|
NGL marketing:
|
|||
Forecasted purchases of NGLs and related hydrocarbon products (MMBbls)
|
143.3
|
5.6
|
Cash flow hedge
|
Forecasted sales of NGLs and related hydrocarbon products (MMBbls)
|
179.7
|
16.6
|
Cash flow hedge
|
NGLs inventory management activities (MMBbls)
|
0.8
|
0.7
|
Fair value hedge
|
Refined products marketing:
|
|
||
Forecasted purchases of refined products (MMBbls)
|
46.8
|
8.1
|
Cash flow hedge
|
Forecasted sales of refined products (MMBbls)
|
54.0
|
11.5
|
Cash flow hedge
|
Refined products inventory management activities (MMBbls)
|
0.1
|
n/a
|
Fair value hedge
|
Crude oil marketing:
|
|
||
Forecasted purchases of crude oil (MMBbls)
|
51.0
|
n/a
|
Cash flow hedge
|
Forecasted sales of crude oil (MMBbls)
|
65.2
|
n/a
|
Cash flow hedge
|
Petrochemical marketing:
|
|||
Forecasted sales of petrochemical products (MMBbls)
|
0.3
|
n/a
|
Cash flow hedge
|
Derivatives not designated as hedging instruments:
|
|||
Natural gas risk management activities (Bcf) (4)
|
37.9
|
0.7
|
Mark-to-market
|
NGL risk management activities (MMBbls) (4)
|
26.4
|
10.8
|
Mark-to-market
|
Refined products risk management activities (MMBbls) (4)
|
4.0
|
n/a
|
Mark-to-market
|
Crude oil risk management activities (MMBbls) (4)
|
19.5
|
5.9
|
Mark-to-market
|
(1)
|
Volume for derivatives designated as hedging instruments reflects the total amount of volumes hedged whereas volume for derivatives not designated as hedging instruments reflects the absolute value of derivative notional volumes.
|
(2)
|
The maximum term for derivatives designated as cash flow hedges, derivatives designated as fair value hedges and derivatives not designated as hedging instruments is December 2022, December 2021 and December 2022, respectively.
|
(3)
|
Forecasted NGL sales volumes under natural gas processing exclude 0.3 MMBbls of additional hedges executed under contracts that have been designated as normal sales agreements.
|
(4)
|
Reflects the use of derivative instruments to manage risks associated with our transportation, processing and storage assets.
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
September 30, 2020
|
|
December 31, 2019
|
|
September 30, 2020
|
|
December 31, 2019
|
|||||||||
Balance
Sheet
Location
|
Fair
Value
|
|
Balance
Sheet
Location
|
Fair
Value
|
|
Balance
Sheet
Location
|
Fair
Value
|
|
Balance
Sheet
Location
|
Fair
Value
|
|||||
Derivatives designated as hedging instruments
|
|||||||||||||||
Interest rate derivatives
|
Current assets
|
$
|
–
|
Current assets
|
$
|
–
|
Current
liabilities
|
$
|
160.7
|
Current
liabilities
|
$
|
6.7
|
|||
Interest rate derivatives
|
Other assets
|
5.7
|
Other assets
|
–
|
Other liabilities
|
32.9
|
Other liabilities
|
6.8
|
|||||||
Total interest rate derivatives
|
5.7
|
–
|
193.6
|
13.5
|
|||||||||||
Commodity derivatives
|
Current assets
|
109.3
|
|
Current assets
|
116.5
|
|
Current
liabilities
|
159.4
|
|
Current
liabilities
|
107.1
|
||||
Commodity derivatives
|
Other assets
|
|
4.3
|
|
Other assets
|
|
–
|
|
Other liabilities
|
|
20.2
|
|
Other liabilities
|
|
–
|
Total commodity derivatives
|
113.6
|
116.5
|
179.6
|
107.1
|
|||||||||||
Total derivatives designated as hedging instruments
|
$
|
119.3
|
$
|
116.5
|
$
|
373.2
|
$
|
120.6
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments
|
|||||||||||||||
Commodity derivatives
|
Current assets
|
$
|
23.6
|
|
Current assets
|
$
|
10.7
|
|
Current
liabilities
|
$
|
9.6
|
|
Current
liabilities
|
$
|
8.6
|
Commodity derivatives
|
Other assets
|
|
2.2
|
|
Other assets
|
0.6
|
|
Other liabilities
|
1.0
|
|
Other liabilities
|
0.5
|
|||
Total commodity derivatives
|
|
|
25.8
|
|
|
11.3
|
|
|
10.6
|
|
|
9.1
|
|||
Total derivatives not designated as hedging instruments
|
$
|
25.8
|
$
|
11.3
|
$
|
10.6
|
$
|
9.1
|
|
Offsetting of Financial Assets and Derivative Assets
|
|||||||||||||||||||||||||||
|
Gross
Amounts of
Recognized
Assets
|
Gross
Amounts
Offset in the
Balance Sheet
|
Amounts
of Assets
Presented
in the
Balance Sheet
|
Gross Amounts Not Offset
in the Balance Sheet
|
Amounts That
Would Have
Been Presented
On Net Basis
|
|||||||||||||||||||||||
Financial
Instruments
|
Cash
Collateral
Received
|
Cash
Collateral
Paid
|
||||||||||||||||||||||||||
|
(i)
|
(ii)
|
(iii) = (i) – (ii)
|
(iv)
|
(v) = (iii) + (iv)
|
|||||||||||||||||||||||
As of September 30, 2020:
|
||||||||||||||||||||||||||||
Interest rate derivatives
|
$
|
5.7
|
$
|
–
|
$
|
5.7
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
5.7
|
||||||||||||||
Commodity derivatives
|
$
|
139.4
|
$
|
–
|
$
|
139.4
|
$
|
(139.4
|
)
|
$
|
–
|
$
|
50.4
|
$
|
50.4
|
|||||||||||||
As of December 31, 2019:
|
||||||||||||||||||||||||||||
Commodity derivatives
|
$
|
127.8
|
$
|
–
|
$
|
127.8
|
$
|
(115.3
|
)
|
$
|
–
|
$
|
(11.0
|
)
|
$
|
1.5
|
|
Offsetting of Financial Liabilities and Derivative Liabilities
|
|||||||||||||||||||||||||||
|
Gross
Amounts of
Recognized
Liabilities
|
Gross
Amounts
Offset in the
Balance Sheet
|
Amounts
of Liabilities
Presented
in the
Balance Sheet
|
Gross Amounts Not Offset
in the Balance Sheet
|
Amounts That
Would Have
Been Presented
On Net Basis
|
|||||||||||||||||||||||
Financial
Instruments
|
Cash
Collateral
Received
|
Cash
Collateral
Paid
|
||||||||||||||||||||||||||
|
(i)
|
(ii)
|
(iii) = (i) – (ii)
|
(iv)
|
(v) = (iii) + (iv)
|
|||||||||||||||||||||||
As of September 30, 2020:
|
||||||||||||||||||||||||||||
Interest rate derivatives
|
$
|
193.6
|
$
|
–
|
$
|
193.6
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
193.6
|
||||||||||||||
Commodity derivatives
|
190.2
|
–
|
190.2
|
(139.4
|
)
|
–
|
–
|
50.8
|
||||||||||||||||||||
As of December 31, 2019:
|
||||||||||||||||||||||||||||
Interest rate derivatives
|
$
|
13.5
|
$
|
–
|
$
|
13.5
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
13.5
|
||||||||||||||
Commodity derivatives
|
116.2
|
–
|
116.2
|
(115.3
|
)
|
–
|
–
|
0.9
|
Derivatives in Fair Value
Hedging Relationships
|
Location
|
Gain (Loss) Recognized in
Income on Derivative
|
|||||||||||||||
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Commodity derivatives
|
Revenue
|
$
|
(19.8
|
)
|
$
|
(0.4
|
)
|
$
|
(69.1
|
)
|
$
|
(2.0
|
)
|
||||
Total
|
|
$
|
(19.8
|
)
|
$
|
(0.4
|
)
|
$
|
(69.1
|
)
|
$
|
(2.0
|
)
|
Derivatives in Fair Value
Hedging Relationships
|
Location
|
Gain (Loss) Recognized in
Income on Hedged Item
|
|||||||||||||||
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Commodity derivatives
|
Revenue
|
$
|
22.4
|
$
|
2.4
|
142.6
|
$
|
8.7
|
|||||||||
Total
|
|
$
|
22.4
|
$
|
2.4
|
$
|
142.6
|
$
|
8.7
|
Derivatives in Cash Flow
Hedging Relationships
|
Change in Value Recognized in
Other Comprehensive Income (Loss) on Derivative
|
|||||||||||||||
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Interest rate derivatives
|
$
|
62.6
|
$
|
(18.6
|
)
|
$
|
(207.7
|
)
|
$
|
(23.8
|
)
|
|||||
Commodity derivatives – Revenue (1)
|
2.6
|
73.5
|
404.5
|
71.1
|
||||||||||||
Commodity derivatives – Operating costs and expenses (1)
|
(6.8
|
)
|
(1.2
|
)
|
(11.8
|
)
|
(12.5
|
)
|
||||||||
Total
|
$
|
58.4
|
$
|
53.7
|
$
|
185.0
|
$
|
34.8
|
(1)
|
The fair value of these derivative instruments will be reclassified to their respective locations on the Unaudited Condensed Statement of Consolidated Operations upon settlement of the underlying derivative transactions, as appropriate.
|
Derivatives in Cash Flow
Hedging Relationships
|
Location
|
Gain (Loss) Reclassified from
Accumulated Other Comprehensive Income (Loss) to Income
|
|||||||||||||||
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Interest rate derivatives
|
Interest expense
|
$
|
(9.9
|
)
|
$
|
(9.4
|
)
|
$
|
(29.2
|
)
|
$
|
(27.8
|
)
|
||||
Commodity derivatives
|
Revenue
|
(19.5
|
)
|
93.6
|
344.7
|
161.4
|
|||||||||||
Commodity derivatives
|
Operating costs and expenses
|
(10.0
|
)
|
(2.1
|
)
|
(9.9
|
)
|
(9.4
|
)
|
||||||||
Total
|
|
$
|
(39.4
|
)
|
$
|
82.1
|
$
|
305.6
|
$
|
124.2
|
Derivatives Not Designated
as Hedging Instruments
|
Location
|
Gain (Loss) Recognized in
Income on Derivative
|
|||||||||||||||
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Interest rate derivatives
|
Interest expense
|
$
|
–
|
$
|
(94.9
|
)
|
$
|
–
|
$
|
(94.9
|
)
|
||||||
Commodity derivatives
|
Revenue
|
14.7
|
21.8
|
113.4
|
96.7
|
||||||||||||
Commodity derivatives
|
Operating costs and expenses
|
0.1
|
(1.6
|
)
|
0.9
|
(6.3
|
)
|
||||||||||
Total
|
|
$
|
14.8
|
$
|
(74.7
|
)
|
$
|
114.3
|
$
|
(4.5
|
)
|
|
At September 30, 2020
Fair Value Measurements Using
|
|||||||||||||||
|
Quoted Prices
in Active
Markets for
Identical Assets
and Liabilities
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
||||||||||||
Financial assets:
|
||||||||||||||||
Interest rate derivatives
|
$
|
–
|
$
|
5.7
|
$
|
–
|
$
|
5.7
|
||||||||
Commodity derivatives:
|
||||||||||||||||
Value before application of CME Rule 814
|
442.4
|
454.1
|
52.7
|
949.2
|
||||||||||||
Impact of CME Rule 814
|
(417.8
|
)
|
(352.3
|
)
|
(39.7
|
)
|
(809.8
|
)
|
||||||||
Total commodity derivatives
|
24.6
|
101.8
|
13.0
|
139.4
|
||||||||||||
Total
|
$
|
24.6
|
$
|
107.5
|
$
|
13.0
|
$
|
145.1
|
||||||||
|
||||||||||||||||
Financial liabilities:
|
||||||||||||||||
Interest rate derivatives
|
$
|
–
|
$
|
193.6
|
$
|
–
|
$
|
193.6
|
||||||||
Commodity derivatives:
|
||||||||||||||||
Value before application of CME Rule 814
|
637.9
|
567.9
|
100.2
|
1,306.0
|
||||||||||||
Impact of CME Rule 814
|
(613.6
|
)
|
(433.5
|
)
|
(68.7
|
)
|
(1,115.8
|
)
|
||||||||
Total commodity derivatives
|
24.3
|
134.4
|
31.5
|
190.2
|
||||||||||||
Total
|
$
|
24.3
|
$
|
328.0
|
$
|
31.5
|
$
|
383.8
|
|
At December 31, 2019
Fair Value Measurements Using
|
|||||||||||||||
|
Quoted Prices
in Active
Markets for
Identical Assets
and Liabilities
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
||||||||||||
Financial assets:
|
||||||||||||||||
Commodity derivatives:
|
||||||||||||||||
Value before application of CME Rule 814
|
$
|
53.4
|
$
|
343.7
|
$
|
0.1
|
$
|
397.2
|
||||||||
Impact of CME Rule 814
|
(47.0
|
)
|
(222.4
|
)
|
–
|
(269.4
|
)
|
|||||||||
Total commodity derivatives
|
6.4
|
121.3
|
0.1
|
127.8
|
||||||||||||
Total
|
$
|
6.4
|
$
|
121.3
|
$
|
0.1
|
$
|
127.8
|
||||||||
|
||||||||||||||||
Financial liabilities:
|
||||||||||||||||
Liquidity Option (see Note 8)
|
$
|
–
|
$
|
–
|
$
|
509.6
|
$
|
509.6
|
||||||||
Interest rate derivatives
|
–
|
13.5
|
–
|
13.5
|
||||||||||||
Commodity derivatives:
|
||||||||||||||||
Value before application of CME Rule 814
|
88.1
|
273.6
|
0.3
|
362.0
|
||||||||||||
Impact of CME Rule 814
|
(81.9
|
)
|
(163.9
|
)
|
–
|
(245.8
|
)
|
|||||||||
Total commodity derivatives
|
6.2
|
109.7
|
0.3
|
116.2
|
||||||||||||
Total
|
$
|
6.2
|
$
|
123.2
|
$
|
509.9
|
$
|
639.3
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Revenues – related parties:
|
||||||||||||||||
Unconsolidated affiliates
|
$
|
7.5
|
$
|
15.6
|
$
|
29.2
|
$
|
53.7
|
||||||||
Costs and expenses – related parties:
|
||||||||||||||||
EPCO and its privately held affiliates
|
$
|
283.9
|
$
|
297.8
|
$
|
847.0
|
$
|
837.9
|
||||||||
Unconsolidated affiliates
|
33.1
|
94.7
|
167.2
|
313.3
|
||||||||||||
Total
|
$
|
317.0
|
$
|
392.5
|
$
|
1,014.2
|
$
|
1,151.2
|
|
September 30,
2020
|
December 31,
2019
|
||||||
Accounts receivable - related parties:
|
||||||||
EPCO and its privately held affiliates
|
$
|
2.2
|
$
|
–
|
||||
Unconsolidated affiliates
|
1.9
|
2.5
|
||||||
Total
|
$
|
4.1
|
$
|
2.5
|
||||
|
||||||||
Accounts payable - related parties:
|
||||||||
EPCO and its privately held affiliates
|
$
|
113.8
|
$
|
143.7
|
||||
Unconsolidated affiliates
|
7.5
|
18.6
|
||||||
Total
|
$
|
121.3
|
$
|
162.3
|
Total Number of Limited Partner Interests Held
|
Percentage of
Limited Partner
Interests
Outstanding
|
701,981,017 common units
|
32.2%
|
15,000 preferred units
|
30.0%
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Operating costs and expenses
|
$
|
247.8
|
$
|
259.3
|
$
|
740.9
|
$
|
732.0
|
||||||||
General and administrative expenses
|
32.1
|
34.2
|
94.6
|
92.9
|
||||||||||||
Total costs and expenses
|
$
|
279.9
|
$
|
293.5
|
$
|
835.5
|
$
|
824.9
|
Asset Category
|
ROU
Asset
Carrying
Value (1)
|
Lease
Liability
Carrying
Value (2)
|
Weighted-
Average
Remaining
Term
|
Weighted-
Average
Discount
Rate (3)
|
|||||
Storage and pipeline facilities
|
$
|
131.0
|
$
|
131.5
|
16 years
|
4.3%
|
|||
Transportation equipment
|
37.4
|
39.7
|
3 years
|
3.5%
|
|||||
Office and warehouse space
|
172.7
|
183.0
|
16 years
|
3.2%
|
|||||
Total
|
$
|
341.1
|
$
|
354.2
|
(1)
|
Right-of-use (“ROU”) asset amounts are a component of “Other assets” on our Unaudited Condensed Consolidated Balance Sheet.
|
(2)
|
At September 30, 2020, lease liabilities of $28.6 million and $325.6 million were included within “Other current liabilities” and “Other liabilities,” respectively.
|
(3)
|
The discount rate for each category of assets represents the weighted average of either (i) the implicit rate applicable to the underlying leases (where determinable) or (ii) our incremental borrowing rate adjusted for collateralization (if the implicit rate is not determinable). In general, the discount rates are based on either (i) information available at the lease commencement date or (ii) January 1, 2019 for leases existing at the adoption date for ASC 842, Leases.
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Long-term operating leases:
|
||||||||||||||||
Fixed lease expense:
|
||||||||||||||||
Non-cash lease expense (amortization of ROU assets)
|
$
|
9.8
|
$
|
10.7
|
$
|
29.6
|
$
|
32.4
|
||||||||
Related accretion expense on lease liability balances
|
3.1
|
2.1
|
9.8
|
6.9
|
||||||||||||
Total fixed lease expense
|
12.9
|
12.8
|
39.4
|
39.3
|
||||||||||||
Variable lease expense
|
0.1
|
1.6
|
0.4
|
4.5
|
||||||||||||
Subtotal operating lease expense
|
13.0
|
14.4
|
39.8
|
43.8
|
||||||||||||
Short-term operating leases
|
12.3
|
12.4
|
37.3
|
35.9
|
||||||||||||
Total operating lease expense
|
$
|
25.3
|
$
|
26.8
|
$
|
77.1
|
$
|
79.7
|
|
For the Nine Months
Ended September 30,
|
|||||||
|
2020
|
2019
|
||||||
Decrease (increase) in:
|
||||||||
Accounts receivable – trade
|
$
|
1,119.5
|
$
|
(578.0
|
)
|
|||
Accounts receivable – related parties
|
1.0
|
1.6
|
||||||
Inventories
|
(1,063.2
|
)
|
(44.2
|
)
|
||||
Prepaid and other current assets
|
288.2
|
(305.3
|
)
|
|||||
Other assets
|
(27.7
|
)
|
(18.3
|
)
|
||||
Increase (decrease) in:
|
||||||||
Accounts payable – trade
|
147.0
|
(55.4
|
)
|
|||||
Accounts payable – related parties
|
(41.0
|
)
|
31.0
|
|||||
Accrued product payables
|
(621.9
|
)
|
666.6
|
|||||
Accrued interest
|
(196.6
|
)
|
(158.4
|
)
|
||||
Other current liabilities
|
(212.3
|
)
|
133.6
|
|||||
Other liabilities
|
(85.0
|
)
|
(82.2
|
)
|
||||
Net effect of changes in operating accounts
|
$
|
(692.0
|
)
|
$
|
(409.0
|
)
|
||
Cash payments for interest, net of $96.9 and $102.9 capitalized during the
nine months ended September 30, 2020 and 2019, respectively
|
$
|
1,107.4
|
$
|
996.1
|
||||
Cash payments for federal and state income taxes
|
$
|
24.9
|
$
|
24.7
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||
Current assets:
|
||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash
|
$
|
863.2
|
$
|
292.5
|
$
|
(24.7
|
)
|
$
|
1,131.0
|
$
|
0.1
|
$
|
–
|
$
|
1,131.1
|
|||||||||||||
Accounts receivable – trade, net
|
1,155.1
|
2,621.9
|
(0.8
|
)
|
3,776.2
|
–
|
–
|
3,776.2
|
||||||||||||||||||||
Accounts receivable – related parties
|
145.8
|
782.0
|
(915.0
|
)
|
12.8
|
–
|
(8.7
|
)
|
4.1
|
|||||||||||||||||||
Inventories
|
2,447.6
|
745.3
|
(0.3
|
)
|
3,192.6
|
–
|
–
|
3,192.6
|
||||||||||||||||||||
Derivative assets
|
101.6
|
31.3
|
–
|
132.9
|
–
|
–
|
132.9
|
|||||||||||||||||||||
Prepaid and other current assets
|
269.8
|
445.5
|
(159.7
|
)
|
555.6
|
0.2
|
0.6
|
556.4
|
||||||||||||||||||||
Total current assets
|
4,983.1
|
4,918.5
|
(1,100.5
|
)
|
8,801.1
|
0.3
|
(8.1
|
)
|
8,793.3
|
|||||||||||||||||||
Property, plant and equipment, net
|
6,685.4
|
35,715.0
|
(40.3
|
)
|
42,360.1
|
–
|
–
|
42,360.1
|
||||||||||||||||||||
Investments in unconsolidated affiliates
|
46,284.9
|
4,840.8
|
(48,640.3
|
)
|
2,485.4
|
25,092.9
|
(25,092.9
|
)
|
2,485.4
|
|||||||||||||||||||
Intangible assets, net
|
624.3
|
2,741.0
|
(16.7
|
)
|
3,348.6
|
–
|
–
|
3,348.6
|
||||||||||||||||||||
Goodwill
|
459.5
|
5,285.7
|
–
|
5,745.2
|
–
|
–
|
5,745.2
|
|||||||||||||||||||||
Other assets
|
907.0
|
335.0
|
(239.4
|
)
|
1,002.6
|
1.0
|
–
|
1,003.6
|
||||||||||||||||||||
Total assets
|
$
|
59,944.2
|
$
|
53,836.0
|
$
|
(50,037.2
|
)
|
$
|
63,743.0
|
$
|
25,094.2
|
$
|
(25,101.0
|
)
|
$
|
63,736.2
|
||||||||||||
|
||||||||||||||||||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||||||||||
Current maturities of debt
|
$
|
1,325.0
|
$
|
–
|
$
|
–
|
$
|
1,325.0
|
$
|
–
|
$
|
–
|
$
|
1,325.0
|
||||||||||||||
Accounts payable – trade
|
288.3
|
631.4
|
(24.7
|
)
|
895.0
|
1.0
|
–
|
896.0
|
||||||||||||||||||||
Accounts payable – related parties
|
891.1
|
158.1
|
(927.9
|
)
|
121.3
|
8.7
|
(8.7
|
)
|
121.3
|
|||||||||||||||||||
Accrued product payables
|
1,879.1
|
2,439.0
|
(1.0
|
)
|
4,317.1
|
–
|
–
|
4,317.1
|
||||||||||||||||||||
Accrued interest
|
235.0
|
3.2
|
(3.1
|
)
|
235.1
|
–
|
–
|
235.1
|
||||||||||||||||||||
Derivative liabilities
|
329.3
|
0.4
|
–
|
329.7
|
–
|
–
|
329.7
|
|||||||||||||||||||||
Other current liabilities
|
201.8
|
579.1
|
(158.2
|
)
|
622.7
|
–
|
–
|
622.7
|
||||||||||||||||||||
Total current liabilities
|
5,149.6
|
3,811.2
|
(1,114.9
|
)
|
7,845.9
|
9.7
|
(8.7
|
)
|
7,846.9
|
|||||||||||||||||||
Long-term debt
|
28,522.4
|
14.6
|
–
|
28,537.0
|
–
|
–
|
28,537.0
|
|||||||||||||||||||||
Deferred tax liabilities
|
25.5
|
434.2
|
(0.5
|
)
|
459.2
|
–
|
4.1
|
463.3
|
||||||||||||||||||||
Other long-term liabilities
|
370.0
|
607.3
|
(242.1
|
)
|
735.2
|
–
|
–
|
735.2
|
||||||||||||||||||||
Commitments and contingent liabilities
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Redeemable preferred limited partner interests
|
–
|
–
|
–
|
–
|
49.2
|
(0.1
|
)
|
49.1
|
||||||||||||||||||||
Equity:
|
||||||||||||||||||||||||||||
Partners’ and other owners’ equity
|
25,876.7
|
48,905.3
|
(49,724.5
|
)
|
25,057.5
|
25,035.3
|
(25,057.5
|
)
|
25,035.3
|
|||||||||||||||||||
Noncontrolling interests in consolidated subsidiairies
|
–
|
63.4
|
1,044.8
|
1,108.2
|
–
|
(38.8
|
)
|
1,069.4
|
||||||||||||||||||||
Total equity
|
25,876.7
|
48,968.7
|
(48,679.7
|
)
|
26,165.7
|
25,035.3
|
(25,096.3
|
)
|
26,104.7
|
|||||||||||||||||||
Total liabilities, preferred units, and equity
|
$
|
59,944.2
|
$
|
53,836.0
|
$
|
(50,037.2
|
)
|
$
|
63,743.0
|
$
|
25,094.2
|
$
|
(25,101.0
|
)
|
$
|
63,736.2
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||
Current assets:
|
||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash
|
$
|
109.2
|
$
|
315.8
|
$
|
(15.1
|
)
|
$
|
409.9
|
$
|
0.1
|
$
|
–
|
$
|
410.0
|
|||||||||||||
Accounts receivable – trade, net
|
1,471.1
|
3,403.8
|
(1.3
|
)
|
4,873.6
|
–
|
–
|
4,873.6
|
||||||||||||||||||||
Accounts receivable – related parties
|
233.1
|
799.9
|
(1,023.6
|
)
|
9.4
|
–
|
(6.9
|
)
|
2.5
|
|||||||||||||||||||
Inventories
|
1,351.3
|
740.4
|
(0.3
|
)
|
2,091.4
|
–
|
–
|
2,091.4
|
||||||||||||||||||||
Derivative assets
|
115.2
|
12.0
|
–
|
127.2
|
–
|
–
|
127.2
|
|||||||||||||||||||||
Prepaid and other current assets
|
221.0
|
183.5
|
(46.3
|
)
|
358.2
|
–
|
–
|
358.2
|
||||||||||||||||||||
Total current assets
|
3,500.9
|
5,455.4
|
(1,086.6
|
)
|
7,869.7
|
0.1
|
(6.9
|
)
|
7,862.9
|
|||||||||||||||||||
Property, plant and equipment, net
|
6,413.3
|
35,233.6
|
(43.5
|
)
|
41,603.4
|
–
|
–
|
41,603.4
|
||||||||||||||||||||
Investments in unconsolidated affiliates
|
45,514.0
|
4,165.7
|
(47,079.5
|
)
|
2,600.2
|
25,279.3
|
(25,279.3
|
)
|
2,600.2
|
|||||||||||||||||||
Intangible assets, net
|
636.7
|
2,852.3
|
(40.0
|
)
|
3,449.0
|
–
|
–
|
3,449.0
|
||||||||||||||||||||
Goodwill
|
459.5
|
5,285.7
|
–
|
5,745.2
|
–
|
–
|
5,745.2
|
|||||||||||||||||||||
Other assets
|
404.9
|
288.5
|
(221.9
|
)
|
471.5
|
1.0
|
–
|
472.5
|
||||||||||||||||||||
Total assets
|
$
|
56,929.3
|
$
|
53,281.2
|
$
|
(48,471.5
|
)
|
$
|
61,739.0
|
$
|
25,280.4
|
$
|
(25,286.2
|
)
|
$
|
61,733.2
|
||||||||||||
|
||||||||||||||||||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||||||||||
Current maturities of debt
|
$
|
1,981.9
|
$
|
–
|
$
|
–
|
$
|
1,981.9
|
$
|
–
|
$
|
–
|
$
|
1,981.9
|
||||||||||||||
Accounts payable – trade
|
301.4
|
717.7
|
(14.6
|
)
|
1,004.5
|
–
|
–
|
1,004.5
|
||||||||||||||||||||
Accounts payable – related parties
|
977.5
|
222.3
|
(1,037.5
|
)
|
162.3
|
6.9
|
(6.9
|
)
|
162.3
|
|||||||||||||||||||
Accrued product payables
|
1,895.4
|
3,021.9
|
(1.6
|
)
|
4,915.7
|
–
|
–
|
4,915.7
|
||||||||||||||||||||
Accrued interest
|
431.6
|
0.9
|
(0.8
|
)
|
431.7
|
–
|
–
|
431.7
|
||||||||||||||||||||
Derivative liabilities
|
114.2
|
8.2
|
–
|
122.4
|
–
|
–
|
122.4
|
|||||||||||||||||||||
Other current liabilities
|
120.5
|
438.2
|
(47.3
|
)
|
511.4
|
–
|
(0.2
|
)
|
511.2
|
|||||||||||||||||||
Total current liabilities
|
5,822.5
|
4,409.2
|
(1,101.8
|
)
|
9,129.9
|
6.9
|
(7.1
|
)
|
9,129.7
|
|||||||||||||||||||
Long-term debt
|
25,628.6
|
14.6
|
–
|
25,643.2
|
–
|
–
|
25,643.2
|
|||||||||||||||||||||
Deferred tax liabilities
|
22.2
|
75.6
|
(0.8
|
)
|
97.0
|
–
|
3.4
|
100.4
|
||||||||||||||||||||
Other long-term liabilities
|
161.2
|
608.9
|
(247.2
|
)
|
522.9
|
509.5
|
–
|
1,032.4
|
||||||||||||||||||||
Commitments and contingent liabilities
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Equity:
|
||||||||||||||||||||||||||||
Partners’ and other owners’ equity
|
25,294.8
|
48,107.6
|
(48,155.3
|
)
|
25,247.1
|
24,764.0
|
(25,247.1
|
)
|
24,764.0
|
|||||||||||||||||||
Noncontrolling interests in consolidated subsidiairies
|
–
|
65.3
|
1,033.6
|
1,098.9
|
–
|
(35.4
|
)
|
1,063.5
|
||||||||||||||||||||
Total equity
|
25,294.8
|
48,172.9
|
(47,121.7
|
)
|
26,346.0
|
24,764.0
|
(25,282.5
|
)
|
25,827.5
|
|||||||||||||||||||
Total liabilities and equity
|
$
|
56,929.3
|
$
|
53,281.2
|
$
|
(48,471.5
|
)
|
$
|
61,739.0
|
$
|
25,280.4
|
$
|
(25,286.2
|
)
|
$
|
61,733.2
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
Revenues
|
$
|
11,392.7
|
$
|
4,135.4
|
$
|
(8,606.1
|
)
|
$
|
6,922.0
|
$
|
–
|
$
|
–
|
$
|
6,922.0
|
|||||||||||||
Costs and expenses:
|
||||||||||||||||||||||||||||
Operating costs and expenses
|
11,053.8
|
3,124.1
|
(8,606.7
|
)
|
5,571.2
|
–
|
–
|
5,571.2
|
||||||||||||||||||||
General and administrative costs
|
8.1
|
41.2
|
0.7
|
50.0
|
0.3
|
–
|
50.3
|
|||||||||||||||||||||
Total costs and expenses
|
11,061.9
|
3,165.3
|
(8,606.0
|
)
|
5,621.2
|
0.3
|
–
|
5,621.5
|
||||||||||||||||||||
Equity in income of unconsolidated affiliates
|
923.7
|
114.3
|
(956.0
|
)
|
82.0
|
1,053.0
|
(1,053.0
|
)
|
82.0
|
|||||||||||||||||||
Operating income
|
1,254.5
|
1,084.4
|
(956.1
|
)
|
1,382.8
|
1,052.7
|
(1,053.0
|
)
|
1,382.5
|
|||||||||||||||||||
Other income (expense):
|
||||||||||||||||||||||||||||
Interest expense
|
(320.8
|
)
|
(2.5
|
)
|
2.8
|
(320.5
|
)
|
–
|
–
|
(320.5
|
)
|
|||||||||||||||||
Other, net
|
4.4
|
(114.1
|
)
|
112.6
|
2.9
|
–
|
–
|
2.9
|
||||||||||||||||||||
Total other expense, net
|
(316.4
|
)
|
(116.6
|
)
|
115.4
|
(317.6
|
)
|
–
|
–
|
(317.6
|
)
|
|||||||||||||||||
Income before income taxes
|
938.1
|
967.8
|
(840.7
|
)
|
1,065.2
|
1,052.7
|
(1,053.0
|
)
|
1,064.9
|
|||||||||||||||||||
Benefit from (provision for) income taxes
|
(1.7
|
)
|
21.3
|
(0.1
|
)
|
19.5
|
0.1
|
(0.5
|
)
|
19.1
|
||||||||||||||||||
Net income
|
936.4
|
989.1
|
(840.8
|
)
|
1,084.7
|
1,052.8
|
(1,053.5
|
)
|
1,084.0
|
|||||||||||||||||||
Net income attributable to noncontrolling interests
|
–
|
(1.8
|
)
|
(31.3
|
)
|
(33.1
|
)
|
–
|
1.7
|
(31.4
|
)
|
|||||||||||||||||
Net income attributable to preferred units
|
–
|
–
|
–
|
–
|
(0.2
|
)
|
0.2
|
–
|
||||||||||||||||||||
Net income attributable to entity
|
$
|
936.4
|
$
|
987.3
|
$
|
(872.1
|
)
|
$
|
1,051.6
|
$
|
1,052.6
|
$
|
(1,051.6
|
)
|
$
|
1,052.6
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
Revenues
|
$
|
8,268.7
|
$
|
5,238.9
|
$
|
(5,543.5
|
)
|
$
|
7,964.1
|
$
|
–
|
$
|
–
|
$
|
7,964.1
|
|||||||||||||
Costs and expenses:
|
||||||||||||||||||||||||||||
Operating costs and expenses
|
7,950.9
|
4,166.6
|
(5,543.8
|
)
|
6,573.7
|
–
|
–
|
6,573.7
|
||||||||||||||||||||
General and administrative costs
|
9.4
|
45.4
|
0.4
|
55.2
|
0.3
|
–
|
55.5
|
|||||||||||||||||||||
Total costs and expenses
|
7,960.3
|
4,212.0
|
(5,543.4
|
)
|
6,628.9
|
0.3
|
–
|
6,629.2
|
||||||||||||||||||||
Equity in income of unconsolidated affiliates
|
1,131.9
|
167.1
|
(1,159.7
|
)
|
139.3
|
1,058.2
|
(1,058.2
|
)
|
139.3
|
|||||||||||||||||||
Operating income
|
1,440.3
|
1,194.0
|
(1,159.8
|
)
|
1,474.5
|
1,057.9
|
(1,058.2
|
)
|
1,474.2
|
|||||||||||||||||||
Other income (expense):
|
||||||||||||||||||||||||||||
Interest expense
|
(383.2
|
)
|
(2.6
|
)
|
2.9
|
(382.9
|
)
|
–
|
–
|
(382.9
|
)
|
|||||||||||||||||
Other, net
|
8.7
|
1.8
|
(2.9
|
)
|
7.6
|
(38.7
|
)
|
–
|
(31.1
|
)
|
||||||||||||||||||
Total other expense, net
|
(374.5
|
)
|
(0.8
|
)
|
–
|
(375.3
|
)
|
(38.7
|
)
|
–
|
(414.0
|
)
|
||||||||||||||||
Income before income taxes
|
1,065.8
|
1,193.2
|
(1,159.8
|
)
|
1,099.2
|
1,019.2
|
(1,058.2
|
)
|
1,060.2
|
|||||||||||||||||||
Provision for income taxes
|
(8.5
|
)
|
(6.6
|
)
|
–
|
(15.1
|
)
|
–
|
(0.3
|
)
|
(15.4
|
)
|
||||||||||||||||
Net income
|
1,057.3
|
1,186.6
|
(1,159.8
|
)
|
1,084.1
|
1,019.2
|
(1,058.5
|
)
|
1,044.8
|
|||||||||||||||||||
Net income attributable to noncontrolling interests
|
–
|
(1.5
|
)
|
(25.4
|
)
|
(26.9
|
)
|
–
|
1.3
|
(25.6
|
)
|
|||||||||||||||||
Net income attributable to entity
|
$
|
1,057.3
|
$
|
1,185.1
|
$
|
(1,185.2
|
)
|
$
|
1,057.2
|
$
|
1,019.2
|
$
|
(1,057.2
|
)
|
$
|
1,019.2
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
Revenues
|
$
|
29,836.7
|
$
|
12,609.5
|
$
|
(22,290.7
|
)
|
$
|
20,155.5
|
$
|
–
|
$
|
–
|
$
|
20,155.5
|
|||||||||||||
Costs and expenses:
|
||||||||||||||||||||||||||||
Operating costs and expenses
|
28,856.1
|
9,438.6
|
(22,292.8
|
)
|
16,001.9
|
–
|
–
|
16,001.9
|
||||||||||||||||||||
General and administrative costs
|
28.5
|
130.6
|
2.1
|
161.2
|
1.6
|
–
|
162.8
|
|||||||||||||||||||||
Total costs and expenses
|
28,884.6
|
9,569.2
|
(22,290.7
|
)
|
16,163.1
|
1.6
|
–
|
16,164.7
|
||||||||||||||||||||
Equity in income of unconsolidated affiliates
|
2,972.6
|
422.3
|
(3,058.8
|
)
|
336.1
|
3,368.9
|
(3,368.9
|
)
|
336.1
|
|||||||||||||||||||
Operating income
|
3,924.7
|
3,462.6
|
(3,058.8
|
)
|
4,328.5
|
3,367.3
|
(3,368.9
|
)
|
4,326.9
|
|||||||||||||||||||
Other income (expense):
|
||||||||||||||||||||||||||||
Interest expense
|
(959.0
|
)
|
(7.6
|
)
|
8.4
|
(958.2
|
)
|
–
|
–
|
(958.2
|
)
|
|||||||||||||||||
Other, net
|
17.4
|
(386.9
|
)
|
384.0
|
14.5
|
(2.0
|
)
|
–
|
12.5
|
|||||||||||||||||||
Total other expense, net
|
(941.6
|
)
|
(394.5
|
)
|
392.4
|
(943.7
|
)
|
(2.0
|
)
|
–
|
(945.7
|
)
|
||||||||||||||||
Income before income taxes
|
2,983.1
|
3,068.1
|
(2,666.4
|
)
|
3,384.8
|
3,365.3
|
(3,368.9
|
)
|
3,381.2
|
|||||||||||||||||||
Benefit from (provision for) income taxes
|
(10.5
|
)
|
78.3
|
(0.4
|
)
|
67.4
|
72.3
|
(1.1
|
)
|
138.6
|
||||||||||||||||||
Net income
|
2,972.6
|
3,146.4
|
(2,666.8
|
)
|
3,452.2
|
3,437.6
|
(3,370.0
|
)
|
3,519.8
|
|||||||||||||||||||
Net income attributable to noncontrolling interests
|
–
|
(4.6
|
)
|
(82.5
|
)
|
(87.1
|
)
|
–
|
4.7
|
(82.4
|
)
|
|||||||||||||||||
Net income attributable to preferred units
|
–
|
–
|
–
|
–
|
(0.2
|
)
|
0.2
|
–
|
||||||||||||||||||||
Net income attributable to entity
|
$
|
2,972.6
|
$
|
3,141.8
|
$
|
(2,749.3
|
)
|
$
|
3,365.1
|
$
|
3,437.4
|
$
|
(3,365.1
|
)
|
$
|
3,437.4
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
Revenues
|
$
|
25,664.8
|
$
|
16,618.5
|
$
|
(17,499.4
|
)
|
$
|
24,783.9
|
$
|
–
|
$
|
–
|
$
|
24,783.9
|
|||||||||||||
Costs and expenses:
|
||||||||||||||||||||||||||||
Operating costs and expenses
|
24,670.6
|
13,216.2
|
(17,492.5
|
)
|
20,394.3
|
–
|
–
|
20,394.3
|
||||||||||||||||||||
General and administrative costs
|
22.6
|
133.4
|
2.3
|
158.3
|
1.9
|
–
|
160.2
|
|||||||||||||||||||||
Total costs and expenses
|
24,693.2
|
13,349.6
|
(17,490.2
|
)
|
20,552.6
|
1.9
|
–
|
20,554.5
|
||||||||||||||||||||
Equity in income of unconsolidated affiliates
|
3,606.9
|
496.8
|
(3,672.4
|
)
|
431.3
|
3,619.4
|
(3,619.4
|
)
|
431.3
|
|||||||||||||||||||
Operating income
|
4,578.5
|
3,765.7
|
(3,681.6
|
)
|
4,662.6
|
3,617.5
|
(3,619.4
|
)
|
4,660.7
|
|||||||||||||||||||
Other income (expense):
|
||||||||||||||||||||||||||||
Interest expense
|
(950.9
|
)
|
(7.8
|
)
|
8.5
|
(950.2
|
)
|
–
|
–
|
(950.2
|
)
|
|||||||||||||||||
Other, net
|
16.0
|
4.2
|
(8.5
|
)
|
11.7
|
(123.1
|
)
|
–
|
(111.4
|
)
|
||||||||||||||||||
Total other expense, net
|
(934.9
|
)
|
(3.6
|
)
|
–
|
(938.5
|
)
|
(123.1
|
)
|
–
|
(1,061.6
|
)
|
||||||||||||||||
Income before income taxes
|
3,643.6
|
3,762.1
|
(3,681.6
|
)
|
3,724.1
|
3,494.4
|
(3,619.4
|
)
|
3,599.1
|
|||||||||||||||||||
Provision for income taxes
|
(18.2
|
)
|
(18.3
|
)
|
–
|
(36.5
|
)
|
–
|
(0.9
|
)
|
(37.4
|
)
|
||||||||||||||||
Net income
|
3,625.4
|
3,743.8
|
(3,681.6
|
)
|
3,687.6
|
3,494.4
|
(3,620.3
|
)
|
3,561.7
|
|||||||||||||||||||
Net income attributable to noncontrolling interests
|
–
|
(4.9
|
)
|
(66.5
|
)
|
(71.4
|
)
|
–
|
4.1
|
(67.3
|
)
|
|||||||||||||||||
Net income attributable to entity
|
$
|
3,625.4
|
$
|
3,738.9
|
$
|
(3,748.1
|
)
|
$
|
3,616.2
|
$
|
3,494.4
|
$
|
(3,616.2
|
)
|
$
|
3,494.4
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
Comprehensive income
|
$
|
1,083.0
|
$
|
940.4
|
$
|
(840.8
|
)
|
$
|
1,182.6
|
$
|
1,150.4
|
$
|
(1,151.2
|
)
|
$
|
1,181.8
|
||||||||||||
Comprehensive income attributable to noncontrolling interests
|
–
|
(1.8
|
)
|
(31.3
|
)
|
(33.1
|
)
|
–
|
1.7
|
(31.4
|
)
|
|||||||||||||||||
Comprehensive income attributable to preferred units
|
–
|
–
|
–
|
–
|
(0.2
|
)
|
0.2
|
–
|
||||||||||||||||||||
Comprehensive income attributable to entity
|
$
|
1,083.0
|
$
|
938.6
|
$
|
(872.1
|
)
|
$
|
1,149.5
|
$
|
1,150.2
|
$
|
(1,149.3
|
)
|
$
|
1,150.4
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
Comprehensive income
|
$
|
1,038.7
|
$
|
1,176.8
|
$
|
(1,159.8
|
)
|
$
|
1,055.7
|
$
|
990.8
|
$
|
(1,030.1
|
)
|
$
|
1,016.4
|
||||||||||||
Comprehensive income attributable to noncontrolling interests
|
–
|
(1.5
|
)
|
(25.4
|
)
|
(26.9
|
)
|
–
|
1.3
|
(25.6
|
)
|
|||||||||||||||||
Comprehensive income attributable to entity
|
$
|
1,038.7
|
$
|
1,175.3
|
$
|
(1,185.2
|
)
|
$
|
1,028.8
|
$
|
990.8
|
$
|
(1,028.8
|
)
|
$
|
990.8
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
Comprehensive income
|
$
|
2,767.1
|
$
|
3,231.4
|
$
|
(2,666.8
|
)
|
$
|
3,331.7
|
$
|
3,316.7
|
$
|
(3,249.3
|
)
|
$
|
3,399.1
|
||||||||||||
Comprehensive income attributable to noncontrolling interests
|
–
|
(4.6
|
)
|
(82.5
|
)
|
(87.1
|
)
|
–
|
4.7
|
(82.4
|
)
|
|||||||||||||||||
Comprehensive income attributable to preferred units
|
–
|
–
|
–
|
–
|
(0.2
|
)
|
0.2
|
–
|
||||||||||||||||||||
Comprehensive income attributable to entity
|
$
|
2,767.1
|
$
|
3,226.8
|
$
|
(2,749.3
|
)
|
$
|
3,244.6
|
$
|
3,316.5
|
$
|
(3,244.4
|
)
|
$
|
3,316.7
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
Comprehensive income
|
$
|
3,628.6
|
$
|
3,650.6
|
$
|
(3,681.6
|
)
|
$
|
3,597.6
|
$
|
3,404.4
|
$
|
(3,530.3
|
)
|
$
|
3,471.7
|
||||||||||||
Comprehensive income attributable to noncontrolling interests
|
–
|
(4.9
|
)
|
(66.5
|
)
|
(71.4
|
)
|
–
|
4.1
|
(67.3
|
)
|
|||||||||||||||||
Comprehensive income attributable to entity
|
$
|
3,628.6
|
$
|
3,645.7
|
$
|
(3,748.1
|
)
|
$
|
3,526.2
|
$
|
3,404.4
|
$
|
(3,526.2
|
)
|
$
|
3,404.4
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
Operating activities:
|
||||||||||||||||||||||||||||
Net income
|
$
|
2,972.6
|
$
|
3,146.4
|
$
|
(2,666.8
|
)
|
$
|
3,452.2
|
$
|
3,437.6
|
$
|
(3,370.0
|
)
|
$
|
3,519.8
|
||||||||||||
Reconciliation of net income to net cash flows provided by operating activities:
|
||||||||||||||||||||||||||||
Depreciation, amortization and accretion
|
260.8
|
1,286.9
|
(2.6
|
)
|
1,545.1
|
–
|
–
|
1,545.1
|
||||||||||||||||||||
Equity in income of unconsolidated affiliates
|
(2,972.6
|
)
|
(422.3
|
)
|
3,058.8
|
(336.1
|
)
|
(3,368.9
|
)
|
3,368.9
|
(336.1
|
)
|
||||||||||||||||
Distributions received from unconsolidated affiliates attributable to earnings
|
1,071.3
|
157.4
|
(891.3
|
)
|
337.4
|
3,164.4
|
(3,164.4
|
)
|
337.4
|
|||||||||||||||||||
Net effect of changes in operating accounts and other operating activities
|
1,997.2
|
(2,254.3
|
)
|
(449.2
|
)
|
(706.3
|
)
|
(68.7
|
)
|
0.4
|
(774.6
|
)
|
||||||||||||||||
Net cash flows provided by operating activities
|
3,329.3
|
1,914.1
|
(951.1
|
)
|
4,292.3
|
3,164.4
|
(3,165.1
|
)
|
4,291.6
|
|||||||||||||||||||
Investing activities:
|
||||||||||||||||||||||||||||
Capital expenditures
|
(533.9
|
)
|
(2,139.1
|
)
|
1.4
|
(2,671.6
|
)
|
–
|
–
|
(2,671.6
|
)
|
|||||||||||||||||
Proceeds from asset sales
|
1.2
|
7.2
|
–
|
8.4
|
–
|
–
|
8.4
|
|||||||||||||||||||||
Other investing activities
|
(1,106.8
|
)
|
30.4
|
1,175.4
|
99.0
|
–
|
–
|
99.0
|
||||||||||||||||||||
Cash used in investing activities
|
(1,639.5
|
)
|
(2,101.5
|
)
|
1,176.8
|
(2,564.2
|
)
|
–
|
–
|
(2,564.2
|
)
|
|||||||||||||||||
Financing activities:
|
||||||||||||||||||||||||||||
Borrowings under debt agreements
|
6,672.1
|
–
|
–
|
6,672.1
|
–
|
–
|
6,672.1
|
|||||||||||||||||||||
Repayments of debt
|
(4,406.6
|
)
|
–
|
–
|
(4,406.6
|
)
|
–
|
–
|
(4,406.6
|
)
|
||||||||||||||||||
Cash distributions paid to owners
|
(3,164.4
|
)
|
(1,104.7
|
)
|
1,153.5
|
(3,115.6
|
)
|
(2,968.4
|
)
|
3,164.4
|
(2,919.6
|
)
|
||||||||||||||||
Cash payments made in connection with DERs
|
–
|
–
|
–
|
–
|
(20.0
|
)
|
–
|
(20.0
|
)
|
|||||||||||||||||||
Cash distributions paid to noncontrolling interests
|
–
|
(6.6
|
)
|
(91.9
|
)
|
(98.5
|
)
|
–
|
0.7
|
(97.8
|
)
|
|||||||||||||||||
Cash contributions from noncontrolling interests
|
–
|
–
|
21.2
|
21.2
|
–
|
–
|
21.2
|
|||||||||||||||||||||
Repurchase of common units under 2019 Buyback Program
|
–
|
–
|
–
|
–
|
(173.8
|
)
|
–
|
(173.8
|
)
|
|||||||||||||||||||
Net cash proceeds from the issuance of preferred unit
|
–
|
–
|
–
|
–
|
32.5
|
–
|
32.5
|
|||||||||||||||||||||
Cash contributions from owners
|
–
|
1,275.4
|
(1,275.4
|
)
|
–
|
–
|
–
|
–
|
||||||||||||||||||||
Other financing activities
|
(36.9
|
)
|
–
|
(42.7
|
)
|
(79.6
|
)
|
(34.7
|
)
|
–
|
(114.3
|
)
|
||||||||||||||||
Cash provided by (used in) financing activities
|
(935.8
|
)
|
164.1
|
(235.3
|
)
|
(1,007.0
|
)
|
(3,164.4
|
)
|
3,165.1
|
(1,006.3
|
)
|
||||||||||||||||
Net change in cash and cash equivalents,
including restricted cash
|
754.0
|
(23.3
|
)
|
(9.6
|
)
|
721.1
|
–
|
–
|
721.1
|
|||||||||||||||||||
Cash and cash equivalents, including
restricted cash, at beginning of period
|
109.2
|
315.8
|
(15.1
|
)
|
409.9
|
0.1
|
–
|
410.0
|
||||||||||||||||||||
Cash and cash equivalents, including
restricted cash, at end of period
|
$
|
863.2
|
$
|
292.5
|
$
|
(24.7
|
)
|
$
|
1,131.0
|
$
|
0.1
|
$
|
–
|
$
|
1,131.1
|
|
EPO and Subsidiaries
|
|||||||||||||||||||||||||||
|
Subsidiary
Issuer
(EPO)
|
Other
Subsidiaries
(Non-
guarantor)
|
EPO and
Subsidiaries
Eliminations
and
Adjustments
|
Consolidated
EPO and
Subsidiaries
|
EPD
(Guarantor)
|
Eliminations
and
Adjustments
|
Consolidated
Total
|
|||||||||||||||||||||
Operating activities:
|
||||||||||||||||||||||||||||
Net income
|
$
|
3,625.4
|
$
|
3,743.8
|
$
|
(3,681.6
|
)
|
$
|
3,687.6
|
$
|
3,494.4
|
$
|
(3,620.3
|
)
|
$
|
3,561.7
|
||||||||||||
Reconciliation of net income to net cash flows provided by operating activities:
|
||||||||||||||||||||||||||||
Depreciation, amortization and accretion
|
231.5
|
1,226.5
|
(1.3
|
)
|
1,456.7
|
–
|
–
|
1,456.7
|
||||||||||||||||||||
Equity in income of unconsolidated affiliates
|
(3,606.9
|
)
|
(496.8
|
)
|
3,672.4
|
(431.3
|
)
|
(3,619.4
|
)
|
3,619.4
|
(431.3
|
)
|
||||||||||||||||
Distributions received from unconsolidated affiliates attributable to earnings
|
1,170.9
|
243.0
|
(982.7
|
)
|
431.2
|
3,028.9
|
(3,028.9
|
)
|
431.2
|
|||||||||||||||||||
Net effect of changes in operating accounts and other operating activities
|
2,203.8
|
(2,549.8
|
)
|
19.1
|
(326.9
|
)
|
134.6
|
0.2
|
(192.1
|
)
|
||||||||||||||||||
Net cash flows provided by operating activities
|
3,624.7
|
2,166.7
|
(974.1
|
)
|
4,817.3
|
3,038.5
|
(3,029.6
|
)
|
4,826.2
|
|||||||||||||||||||
Investing activities:
|
||||||||||||||||||||||||||||
Capital expenditures
|
(503.8
|
)
|
(2,791.2
|
)
|
(7.1
|
)
|
(3,302.1
|
)
|
–
|
–
|
(3,302.1
|
)
|
||||||||||||||||
Proceeds from asset sales
|
0.9
|
15.9
|
–
|
16.8
|
–
|
–
|
16.8
|
|||||||||||||||||||||
Other investing activities
|
(1,349.5
|
)
|
(28.8
|
)
|
1,290.8
|
(87.5
|
)
|
(119.3
|
)
|
119.3
|
(87.5
|
)
|
||||||||||||||||
Cash used in investing activities
|
(1,852.4
|
)
|
(2,804.1
|
)
|
1,283.7
|
(3,372.8
|
)
|
(119.3
|
)
|
119.3
|
(3,372.8
|
)
|
||||||||||||||||
Financing activities:
|
||||||||||||||||||||||||||||
Borrowings under debt agreements
|
44,629.6
|
–
|
–
|
44,629.6
|
–
|
–
|
44,629.6
|
|||||||||||||||||||||
Repayments of debt
|
(42,855.2
|
)
|
(0.1
|
)
|
–
|
(42,855.3
|
)
|
–
|
–
|
(42,855.3
|
)
|
|||||||||||||||||
Cash distributions paid to owners
|
(3,028.9
|
)
|
(1,484.8
|
)
|
1,484.8
|
(3,028.9
|
)
|
(2,871.1
|
)
|
3,028.9
|
(2,871.1
|
)
|
||||||||||||||||
Cash payments made in connection with DERs
|
–
|
–
|
–
|
–
|
(16.4
|
)
|
–
|
(16.4
|
)
|
|||||||||||||||||||
Cash distributions paid to noncontrolling interests
|
–
|
(7.0
|
)
|
(63.4
|
)
|
(70.4
|
)
|
–
|
0.7
|
(69.7
|
)
|
|||||||||||||||||
Cash contributions from noncontrolling interests
|
–
|
–
|
590.8
|
590.8
|
–
|
–
|
590.8
|
|||||||||||||||||||||
Net cash proceeds from issuance of common units
|
–
|
–
|
–
|
–
|
82.2
|
–
|
82.2
|
|||||||||||||||||||||
Repurchase of common units under 2019 Buyback Program
|
–
|
–
|
–
|
–
|
(81.1
|
)
|
–
|
(81.1
|
)
|
|||||||||||||||||||
Cash contributions from owners
|
119.3
|
2,320.3
|
(2,320.3
|
)
|
119.3
|
–
|
(119.3
|
)
|
–
|
|||||||||||||||||||
Other financing activities
|
(26.3
|
)
|
(5.6
|
)
|
–
|
(31.9
|
)
|
(32.8
|
)
|
–
|
(64.7
|
)
|
||||||||||||||||
Cash provided by (used in) financing activities
|
(1,161.5
|
)
|
822.8
|
(308.1
|
)
|
(646.8
|
)
|
(2,919.2
|
)
|
2,910.3
|
(655.7
|
)
|
||||||||||||||||
Net change in cash and cash equivalents,
including restricted cash
|
610.8
|
185.4
|
1.5
|
797.7
|
–
|
–
|
797.7
|
|||||||||||||||||||||
Cash and cash equivalents, including
restricted cash, at beginning of period
|
393.4
|
50.3
|
(33.6
|
)
|
410.1
|
–
|
–
|
410.1
|
||||||||||||||||||||
Cash and cash equivalents, including
restricted cash, at end of period
|
$
|
1,004.2
|
$
|
235.7
|
$
|
(32.1
|
)
|
$
|
1,207.8
|
$
|
–
|
$
|
–
|
$
|
1,207.8
|
/d
|
=
|
per day
|
MMBbls
|
=
|
million barrels
|
BBtus
|
=
|
billion British thermal units
|
MMBPD
|
=
|
million barrels per day
|
Bcf
|
=
|
billion cubic feet
|
MMBtus
|
=
|
million British thermal units
|
BPD
|
=
|
barrels per day
|
MMcf
|
=
|
million cubic feet
|
MBPD
|
=
|
thousand barrels per day
|
TBtus
|
=
|
trillion British thermal units
|
•
|
At September 30, 2020, we had $6.03 billion of consolidated liquidity, which was comprised of $5.0 billion of available borrowing capacity under EPO’s revolving credit facilities and $1.03 billion of unrestricted cash on hand. Our liquidity is supported by investment grade credit ratings on EPO’s long-term senior unsecured debt of BBB+, Baa1 and BBB+ from Standard & Poors, Moody’s and Fitch, respectively.
|
•
|
EPO successfully issued $4.25 billion in principal amount of senior notes in the first nine months of 2020. Based on current conditions, we believe that we will have sufficient liquidity and/or access to debt capital markets to fund the remaining principal amount of senior notes maturing through 2021.
|
•
|
In light of the current downturn in the domestic energy industry, we reevaluated our planned capital investments. Based on information currently available, we now expect our total capital investments for 2020, net of contributions from joint venture partners, to approximate $3.2 billion (originally forecast in our 2019 Form 10-K at $3.4 billion to $4.4 billion), which reflects growth capital investments of $2.9 billion and approximately $300 million for sustaining capital expenditures. In addition, we currently expect our growth capital investments in 2021 and 2022 for sanctioned projects to approximate $1.6 billion and $800 million, respectively. These amounts do not include capital investments associated with our proposed deepwater offshore crude oil terminal (the Sea Port Oil Terminal or “SPOT”), which remains subject to governmental approvals. We do not expect to receive the approvals for SPOT in 2020.
|
•
|
We continue to optimize our assets to provide incremental services to customers and to respond to market opportunities. As prices for certain NGLs, crude oil and refined products fell in 2020 due to collapsing demand for refined products as a result of the pandemic, our storage services provided valuable flexibility for our customers. In addition, our earnings from marketing activities for the nine months ended September 30, 2020 benefited from using uncontracted storage capacity to capture contango opportunities in NGLs, crude oil and refined products.
|
•
|
Across all of our assets, we have contracted with a large number of quality customers in order to achieve customer diversification. In 2019, our top 200 largest customers represented 96% of consolidated revenues. Based on their respective year-end 2019 debt ratings, 81% of our top 200 customers were either investment grade rated or backed by letters of credit. Additionally, only 6% of our top 200 customer revenues were attributable to sub-investment grade or non-rated upstream producers. Given the current market environment, the rating agencies have taken numerous rating actions, including downgrades, across the energy industry. After adjusting for all ratings actions through April 23, 2020, we estimate that 78% of our top 200 customers remain investment grade rated or are backed by letters of credit.
|
|
Polymer
|
Refinery
|
Indicative Gas
|
||||||
Natural
|
Normal
|
Natural
|
Grade
|
Grade
|
Processing
|
||||
Gas,
|
Ethane,
|
Propane,
|
Butane,
|
Isobutane,
|
Gasoline,
|
Propylene,
|
Propylene,
|
Gross Spread
|
|
$/MMBtu
|
$/gallon
|
$/gallon
|
$/gallon
|
$/gallon
|
$/gallon
|
$/pound
|
$/pound
|
$/gallon
|
|
(1)
|
(2)
|
(2)
|
(2)
|
(2)
|
(2)
|
(3)
|
(3)
|
(4)
|
|
2019 by quarter:
|
|||||||||
1st Quarter
|
$3.15
|
$0.30
|
$0.67
|
$0.82
|
$0.85
|
$1.16
|
$0.38
|
$0.24
|
$0.31
|
2nd Quarter
|
$2.64
|
$0.21
|
$0.55
|
$0.63
|
$0.65
|
$1.21
|
$0.37
|
$0.24
|
$0.25
|
3rd Quarter
|
$2.23
|
$0.17
|
$0.44
|
$0.51
|
$0.66
|
$1.06
|
$0.38
|
$0.23
|
$0.21
|
4th Quarter
|
$2.50
|
$0.19
|
$0.50
|
$0.68
|
$0.82
|
$1.20
|
$0.35
|
$0.21
|
$0.25
|
2019 Averages
|
$2.63
|
$0.22
|
$0.54
|
$0.66
|
$0.75
|
$1.16
|
$0.37
|
$0.23
|
$0.26
|
2020 by quarter:
|
|||||||||
1st Quarter
|
$1.95
|
$0.14
|
$0.37
|
$0.57
|
$0.63
|
$0.93
|
$0.31
|
$0.18
|
$0.19
|
2nd Quarter
|
$1.71
|
$0.19
|
$0.41
|
$0.43
|
$0.44
|
$0.41
|
$0.26
|
$0.11
|
$0.17
|
3rd Quarter
|
$1.98
|
$0.22
|
$0.50
|
$0.58
|
$0.60
|
$0.80
|
$0.35
|
$0.17
|
$0.25
|
2020 Averages
|
$1.88
|
$0.18
|
$0.43
|
$0.53
|
$0.56
|
$0.71
|
$0.31
|
$0.15
|
$0.20
|
(1)
|
Natural gas prices are based on Henry-Hub Inside FERC commercial index prices as reported by Platts, which is a division of McGraw Hill Financial, Inc.
|
(2)
|
NGL prices for ethane, propane, normal butane, isobutane and natural gasoline are based on Mont Belvieu Non-TET commercial index prices as reported by Oil Price Information Service.
|
(3)
|
Polymer grade propylene prices represent average contract pricing for such product as reported by IHS Chemical, a division of IHS Inc. (“IHS Chemical”). Refinery grade propylene (“RGP”) prices represent weighted-average spot prices for such product as reported by IHS Chemical.
|
(4)
|
The “Indicative Gas Processing Gross Spread” represents a generic estimate of the gross economic benefit from extracting NGLs from natural gas production based on certain pricing assumptions. Specifically, it is the amount by which the assumed economic value of a composite gallon of NGLs at Mont Belvieu, Texas exceeds the value of the equivalent amount of energy in natural gas at Henry Hub, Louisiana (as presented in the table above). The indicative spread does not consider the operating costs incurred by a natural gas processing facility to extract the NGLs nor the transportation and fractionation costs to deliver the NGLs to market. In addition, the actual gas processing spread earned at each plant is determined by regional pricing and extraction dynamics. As presented in the table above, the indicative spread assumes that a gallon of NGLs is comprised of 47% ethane, 28% propane, 9% normal butane, 6% isobutane and 10% natural gasoline. The value of an equivalent amount of energy in natural gas to one gallon of NGLs is assumed to be 8.4% of the price of a MMBtu of natural gas at Henry Hub.
|
|
WTI
|
Midland
|
Houston
|
LLS
|
Crude Oil,
|
Crude Oil,
|
Crude Oil
|
Crude Oil,
|
|
$/barrel
|
$/barrel
|
$/barrel
|
$/barrel
|
|
(1)
|
(2)
|
(2)
|
(3)
|
|
2019 by quarter:
|
||||
1st Quarter
|
$54.90
|
$53.70
|
$61.19
|
$62.35
|
2nd Quarter
|
$59.81
|
$57.62
|
$66.47
|
$67.07
|
3rd Quarter
|
$56.45
|
$56.12
|
$59.75
|
$60.64
|
4th Quarter
|
$56.96
|
$57.80
|
$60.04
|
$60.76
|
2019 Averages
|
$57.03
|
$56.31
|
$61.86
|
$62.71
|
2020 by quarter:
|
||||
1st Quarter
|
$46.17
|
$45.51
|
$47.81
|
$48.15
|
2nd Quarter
|
$27.85
|
$28.22
|
$29.68
|
$30.12
|
3rd Quarter
|
$40.93
|
$41.05
|
$41.77
|
$42.47
|
2020 Averages
|
$38.32
|
$38.26
|
$39.75
|
$40.25
|
(1)
|
WTI prices are based on commercial index prices at Cushing, Oklahoma as measured by the NYMEX.
|
(2)
|
Midland and Houston crude oil prices are based on commercial index prices as reported by Argus.
|
(3)
|
Light Louisiana Sweet (“LLS”) prices are based on commercial index prices as reported by Platts.
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Revenues
|
$
|
6,922.0
|
$
|
7,964.1
|
$
|
20,155.5
|
$
|
24,783.9
|
||||||||
Costs and expenses:
|
||||||||||||||||
Operating costs and expenses:
|
||||||||||||||||
Cost of sales
|
4,313.7
|
5,276.5
|
12,331.9
|
16,721.5
|
||||||||||||
Other operating costs and expenses
|
696.9
|
790.8
|
2,120.4
|
2,243.4
|
||||||||||||
Depreciation, amortization and accretion expenses
|
484.2
|
467.1
|
1,461.3
|
1,380.8
|
||||||||||||
Net gains attributable to asset sales
|
(0.6
|
)
|
(0.1
|
)
|
(2.1
|
)
|
(2.6
|
)
|
||||||||
Asset impairment and related charges
|
77.0
|
39.4
|
90.4
|
51.2
|
||||||||||||
Total operating costs and expenses
|
5,571.2
|
6,573.7
|
16,001.9
|
20,394.3
|
||||||||||||
General and administrative costs
|
50.3
|
55.5
|
162.8
|
160.2
|
||||||||||||
Total costs and expenses
|
5,621.5
|
6,629.2
|
16,164.7
|
20,554.5
|
||||||||||||
Equity in income of unconsolidated affiliates
|
82.0
|
139.3
|
336.1
|
431.3
|
||||||||||||
Operating income
|
1,382.5
|
1,474.2
|
4,326.9
|
4,660.7
|
||||||||||||
Interest expense
|
(320.5
|
)
|
(382.9
|
)
|
(958.2
|
)
|
(950.2
|
)
|
||||||||
Change in fair value of Liquidity Option
|
–
|
(38.7
|
)
|
(2.3
|
)
|
(123.1
|
)
|
|||||||||
Other, net
|
2.9
|
7.6
|
14.8
|
11.7
|
||||||||||||
Benefit from (provision for) income taxes
|
19.1
|
(15.4
|
)
|
138.6
|
(37.4
|
)
|
||||||||||
Net income
|
1,084.0
|
1,044.8
|
3,519.8
|
3,561.7
|
||||||||||||
Net income attributable to noncontrolling interests
|
(31.4
|
)
|
(25.6
|
)
|
(82.4
|
)
|
(67.3
|
)
|
||||||||
Net income attributable to preferred units
|
*
|
–
|
*
|
–
|
||||||||||||
Net income attributable to common unitholders
|
$
|
1,052.6
|
$
|
1,019.2
|
$
|
3,437.4
|
$
|
3,494.4
|
||||||||
* Amount is negligible
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
NGL Pipelines & Services:
|
||||||||||||||||
Sales of NGLs and related products
|
$
|
2,048.4
|
$
|
2,624.9
|
$
|
6,401.7
|
$
|
7,955.5
|
||||||||
Midstream services
|
565.6
|
627.2
|
1,656.7
|
1,895.7
|
||||||||||||
Total
|
2,614.0
|
3,252.1
|
8,058.4
|
9,851.2
|
||||||||||||
Crude Oil Pipelines & Services:
|
||||||||||||||||
Sales of crude oil
|
1,216.1
|
2,130.0
|
4,059.7
|
6,990.1
|
||||||||||||
Midstream services
|
305.5
|
348.3
|
964.0
|
962.1
|
||||||||||||
Total
|
1,521.6
|
2,478.3
|
5,023.7
|
7,952.2
|
||||||||||||
Natural Gas Pipelines & Services:
|
||||||||||||||||
Sales of natural gas
|
350.7
|
440.0
|
1,097.6
|
1,627.1
|
||||||||||||
Midstream services
|
256.2
|
275.5
|
765.1
|
835.2
|
||||||||||||
Total
|
606.9
|
715.5
|
1,862.7
|
2,462.3
|
||||||||||||
Petrochemical & Refined Products Services:
|
||||||||||||||||
Sales of petrochemicals and refined products
|
1,966.2
|
1,299.0
|
4,593.7
|
3,867.3
|
||||||||||||
Midstream services
|
213.3
|
219.2
|
617.0
|
650.9
|
||||||||||||
Total
|
2,179.5
|
1,518.2
|
5,210.7
|
4,518.2
|
||||||||||||
Total consolidated revenues
|
$
|
6,922.0
|
$
|
7,964.1
|
$
|
20,155.5
|
$
|
24,783.9
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Interest charged on debt principal outstanding
|
$
|
334.9
|
$
|
319.3
|
$
|
1,000.4
|
$
|
934.2
|
||||||||
Impact of interest rate hedging program, including related amortization (1)
|
9.9
|
90.3
|
29.2
|
97.9
|
||||||||||||
Interest costs capitalized in connection with construction projects (2)
|
(34.5
|
)
|
(33.9
|
)
|
(96.9
|
)
|
(102.9
|
)
|
||||||||
Other (3)
|
10.2
|
7.2
|
25.5
|
21.0
|
||||||||||||
Total
|
$
|
320.5
|
$
|
382.9
|
$
|
958.2
|
$
|
950.2
|
(1)
|
Amounts presented for the three and nine months ended September 30, 2019 reflect an unrealized, mark-to-market loss of $94.9 million recognized in September 2019 in connection with the exercise of swaptions. Due to declining interest rates, the counterparties to the swaptions exercised their right to put us into ten forward-starting swaps on September 30, 2019 having an aggregate notional value of $1.0 billion. Since the swaptions were not designated as hedging instruments and were subject to mark-to-market accounting, we incurred an unrealized, mark-to-market loss at inception of the forward-starting swaps that is reflected as an increase in interest expense for the three and nine months ended September 30, 2019.
|
(2)
|
We capitalize interest costs incurred on funds used to construct property, plant and equipment while the asset is in its construction phase. Capitalized interest amounts become part of the historical cost of an asset and are charged to earnings (as a component of depreciation expense) on a straight-line basis over the estimated useful life of the asset once the asset enters its intended service. When capitalized interest is recorded, it reduces interest expense from what it would be otherwise. Capitalized interest amounts fluctuate based on the timing of when projects are placed into service, our capital investment levels and the interest rates charged on borrowings.
|
(3)
|
Primarily reflects facility commitment fees charged in connection with our revolving credit facilities and amortization of debt issuance costs.
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Deferred tax benefit (expense) attributable to OTA
|
$
|
21.3
|
$
|
158.0
|
||||||||||||
Texas Margin Tax
|
(7.2
|
)
|
$
|
(15.5
|
)
|
(21.9
|
)
|
$
|
(36.5
|
)
|
||||||
Other
|
5.0
|
0.1
|
2.5
|
(0.9
|
)
|
|||||||||||
Benefit from (provision for) income taxes
|
$
|
19.1
|
$
|
(15.4
|
)
|
$
|
138.6
|
$
|
(37.4
|
)
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Gross operating margin by segment:
|
||||||||||||||||
NGL Pipelines & Services
|
$
|
1,028.1
|
$
|
1,008.3
|
$
|
3,038.2
|
$
|
2,933.8
|
||||||||
Crude Oil Pipelines & Services
|
481.8
|
496.2
|
1,569.1
|
1,671.7
|
||||||||||||
Natural Gas Pipelines & Services
|
208.4
|
258.5
|
701.1
|
824.6
|
||||||||||||
Petrochemical & Refined Products Services
|
315.0
|
288.4
|
785.0
|
835.9
|
||||||||||||
Total segment gross operating margin (1)
|
2,033.3
|
2,051.4
|
6,093.4
|
6,266.0
|
||||||||||||
Net adjustment for shipper make-up rights
|
(39.9
|
)
|
(15.3
|
)
|
(54.1
|
)
|
(15.7
|
)
|
||||||||
Total gross operating margin (non-GAAP)
|
$
|
1,993.4
|
$
|
2,036.1
|
$
|
6,039.3
|
$
|
6,250.3
|
(1)
|
Within the context of this table, total segment gross operating margin represents a subtotal and corresponds to measures similarly titled within our business segment disclosures found under Note 10 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Operating income
|
$
|
1,382.5
|
$
|
1,474.2
|
$
|
4,326.9
|
$
|
4,660.7
|
||||||||
Adjustments to reconcile operating income to total gross operating margin
(addition or subtraction indicated by sign):
|
||||||||||||||||
Depreciation, amortization and accretion expense in operating costs and
expenses
|
484.2
|
467.1
|
1,461.3
|
1,380.8
|
||||||||||||
Asset impairment and related charges in operating costs and expenses
|
77.0
|
39.4
|
90.4
|
51.2
|
||||||||||||
Net gains attributable to asset sales in operating costs and expenses
|
(0.6
|
)
|
(0.1
|
)
|
(2.1
|
)
|
(2.6
|
)
|
||||||||
General and administrative costs
|
50.3
|
55.5
|
162.8
|
160.2
|
||||||||||||
Total gross operating margin (non-GAAP)
|
$
|
1,993.4
|
$
|
2,036.1
|
$
|
6,039.3
|
$
|
6,250.3
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Segment gross operating margin:
|
||||||||||||||||
Natural gas processing and related NGL marketing activities
|
$
|
256.8
|
$
|
288.0
|
$
|
708.3
|
$
|
829.3
|
||||||||
NGL pipelines, storage and terminals
|
602.9
|
593.4
|
1,862.5
|
1,739.4
|
||||||||||||
NGL fractionation
|
168.4
|
126.9
|
467.4
|
365.1
|
||||||||||||
Total
|
$
|
1,028.1
|
$
|
1,008.3
|
$
|
3,038.2
|
$
|
2,933.8
|
||||||||
Selected volumetric data:
|
||||||||||||||||
NGL pipeline transportation volumes (MBPD)
|
3,446
|
3,557
|
3,563
|
3,532
|
||||||||||||
NGL marine terminal volumes (MBPD)
|
643
|
602
|
696
|
590
|
||||||||||||
NGL fractionation volumes (MBPD)
|
1,350
|
1,003
|
1,357
|
990
|
||||||||||||
Equity NGL production volumes (MBPD) (1)
|
141
|
111
|
156
|
138
|
||||||||||||
Fee-based natural gas processing volumes (MMcf/d) (2, 3)
|
4,105
|
4,724
|
4,299
|
4,729
|
(1)
|
Represents the NGL volumes we earn and take title to in connection with our processing activities.
|
(2)
|
Volumes reported correspond to the revenue streams earned by our natural gas processing plants.
|
(3)
|
Fee-based natural gas processing volumes are measured at either the wellhead or plant inlet in MMcf/d.
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Segment gross operating margin:
|
||||||||||||||||
Midland-to-ECHO System:
|
||||||||||||||||
Midland-to-ECHO 1 pipeline and related business activities,
excluding associated non-cash mark-to-market results
|
$
|
51.9
|
$
|
89.3
|
$
|
165.2
|
$
|
298.6
|
||||||||
Non-cash mark-to-market gains (losses)
|
(0.5
|
)
|
10.0
|
0.4
|
91.2
|
|||||||||||
Total Midland-to-ECHO 1 pipeline and related business activities
|
51.4
|
99.3
|
165.6
|
389.8
|
||||||||||||
Midland-to-ECHO 2 pipeline
|
34.2
|
27.0
|
102.4
|
72.5
|
||||||||||||
Total Midland-to-ECHO System
|
85.6
|
126.3
|
268.0
|
462.3
|
||||||||||||
Other crude oil pipelines, terminals and related marketing results
|
396.2
|
369.9
|
1,301.1
|
1,209.4
|
||||||||||||
Total
|
$
|
481.8
|
$
|
496.2
|
$
|
1,569.1
|
$
|
1,671.7
|
||||||||
Selected volumetric data:
|
||||||||||||||||
Crude oil pipeline transportation volumes (MBPD)
|
1,739
|
2,321
|
2,008
|
2,315
|
||||||||||||
Crude oil marine terminal volumes (MBPD)
|
662
|
987
|
790
|
972
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Segment gross operating margin
|
$
|
208.4
|
$
|
258.5
|
$
|
701.1
|
$
|
824.6
|
||||||||
Selected volumetric data:
|
||||||||||||||||
Natural gas pipeline transportation volumes (BBtus/d)
|
13,131
|
14,474
|
13,322
|
14,341
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Segment gross operating margin:
|
||||||||||||||||
Propylene production and related activities
|
$
|
133.1
|
$
|
130.8
|
$
|
302.2
|
$
|
366.8
|
||||||||
Butane isomerization and related operations
|
18.7
|
15.5
|
44.9
|
60.7
|
||||||||||||
Octane enhancement and related plant operations
|
40.0
|
54.6
|
145.7
|
131.4
|
||||||||||||
Refined products pipelines and related activities
|
101.5
|
74.4
|
242.9
|
241.6
|
||||||||||||
Ethylene exports and other services
|
21.7
|
13.1
|
49.3
|
35.4
|
||||||||||||
Total
|
$
|
315.0
|
$
|
288.4
|
$
|
785.0
|
$
|
835.9
|
||||||||
|
||||||||||||||||
Selected volumetric data:
|
||||||||||||||||
Propylene production volumes (MBPD)
|
83
|
105
|
84
|
99
|
||||||||||||
Butane isomerization volumes (MBPD)
|
102
|
109
|
92
|
110
|
||||||||||||
Standalone DIB processing volumes (MBPD)
|
120
|
103
|
119
|
97
|
||||||||||||
Octane enhancement and related plant sales volumes (MBPD) (1)
|
35
|
33
|
34
|
33
|
||||||||||||
Pipeline transportation volumes, primarily refined products &
petrochemicals (MBPD)
|
844
|
747
|
780
|
742
|
||||||||||||
Marine terminal volumes, primarily refined products and
petrochemicals (MBPD)
|
226
|
297
|
249
|
344
|
(1)
|
Reflects aggregate sales volumes for our octane additive and iBDH facilities located at our Mont Belvieu complex and our high-purity isobutylene production facility located adjacent to the Houston Ship Channel.
|
|
Scheduled Maturities of Debt
|
|||||||||||||||||||||||||||
|
Total
|
Remainder
of 2020
|
2021
|
2022
|
2023
|
2024
|
Thereafter
|
|||||||||||||||||||||
Principal amount of senior and junior debt obligations
|
$
|
30,146.4
|
$
|
–
|
$
|
1,325.0
|
$
|
1,400.0
|
$
|
1,250.0
|
$
|
850.0
|
$
|
25,321.4
|
|
For the Nine Months
Ended September 30,
|
|||||||
|
2020
|
2019
|
||||||
Net cash flows provided by operating activities
|
$
|
4,291.6
|
$
|
4,826.2
|
||||
Cash used in investing activities
|
2,564.2
|
3,372.8
|
||||||
Cash used in financing activities
|
1,006.3
|
655.7
|
• |
a $283.0 million period-to-period decrease primarily due to higher levels of working capital employed in our marketing activities, which accounted for a $1.3 billion decrease, partially offset by the timing of cash receipts and payments related to operations;
|
• |
a $157.8 million period-to-period decrease resulting from lower partnership earnings in the nine months ended September 30, 2020 when compared to the nine months ended September 30, 2019 (determined by adjusting our $41.9 million period-to-period decrease in net income for changes in the non-cash items identified on our Unaudited Condensed Statements of Consolidated Cash Flows); and
|
• |
a $93.8 million period-to-period decrease in cash distributions attributable to earnings from unconsolidated affiliates, with those unconsolidated affiliates owning crude oil pipelines and terminals accounting for substantially all of the decrease.
|
• |
a $630.5 million period-to-period decrease in investments for property, plant and equipment (see “Capital Investments” within this Part I, Item 2 for additional information);
|
• |
a $90.2 million period-to-period decrease in investments in unconsolidated affiliates primarily due to lower cash outlays for NGL and crude oil pipeline projects; and
|
• |
a $71.0 million period-to-period increase in cash distributions attributable to the return of capital from unconsolidated affiliates, with those unconsolidated affiliates owning crude oil pipelines and terminals accounting for substantially all of the increase.
|
• |
a $569.6 million period-to-period decrease in cash contributions from noncontrolling interests. In July 2019, an affiliate of Apache Corporation acquired a noncontrolling 33% equity interest in our consolidated subsidiary that owns the Shin Oak NGL Pipeline for $440.7 million. In addition, cash contributions from noncontrolling interests in connection with our Pascagoula natural gas processing plant and ethylene export facility decreased a combined $95.0 million period-to-period;
|
• |
a $92.7 million period-to-period increase in cash used to acquire common units under our 2019 Buyback Program;
|
• |
an $82.2 million period-to-period decrease in net cash proceeds from the issuance of common units under our distribution reinvestment plan (“DRIP”) and employee unit purchase plan (“EUPP”). In July 2019, the Partnership announced that, beginning with the quarterly distribution payment paid in August 2019, it would use common units purchased on the open market, rather than issuing new common units, to satisfy its delivery obligations under the DRIP and EUPP; and
|
• |
a $48.5 million period-to-period increase in cash distributions paid to common unitholders attributable to increases in the quarterly cash distribution rate per unit; partially offset by
|
• |
a net $437.9 million period-to-period increase in net cash inflows from debt. For the nine months ended September 30, 2020, we issued $4.25 billion aggregate principal amount of senior notes, partially offset by the repayment of $1.5 billion principal amount of senior notes. For the nine months ended September 30, 2019, we issued $2.5 billion aggregate principal amount of senior notes, partially offset by the repayment or repurchase of $724.2 million principal amount of senior and junior subordinated notes. In addition, net repayments of short term notes under EPO’s commercial paper program were $481.7 million during the nine months ended September 30, 2020; and
|
• |
a $32.5 million increase in cash proceeds from the issuance of preferred units on September 30, 2020.
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Net income attributable to common unitholders (GAAP) (1)
|
$
|
1,052.6
|
$
|
1,019.2
|
$
|
3,437.4
|
$
|
3,494.4
|
||||||||
Adjustments to net income attributable to common unitholders to
derive DCF (addition or subtraction indicated by sign):
|
||||||||||||||||
Depreciation, amortization and accretion expenses
|
513.4
|
493.6
|
1,545.1
|
1,456.7
|
||||||||||||
Cash distributions received from unconsolidated affiliates (2)
|
146.7
|
170.6
|
462.3
|
485.1
|
||||||||||||
Equity in income of unconsolidated affiliates
|
(82.0
|
)
|
(139.3
|
)
|
(336.1
|
)
|
(431.3
|
)
|
||||||||
Asset impairment and related charges
|
77.0
|
39.5
|
90.4
|
51.3
|
||||||||||||
Change in fair market value of derivative instruments
|
37.7
|
85.8
|
(53.7
|
)
|
2.0
|
|||||||||||
Change in fair value of Liquidity Option
|
–
|
38.7
|
2.3
|
123.1
|
||||||||||||
Deferred income tax expense (benefit)
|
(18.3
|
)
|
6.7
|
(149.0
|
)
|
10.9
|
||||||||||
Sustaining capital expenditures (3)
|
(83.1
|
)
|
(90.8
|
)
|
(226.0
|
)
|
(232.5
|
)
|
||||||||
Other, net
|
(1.3
|
)
|
14.8
|
30.1
|
13.8
|
|||||||||||
Operational DCF (4)
|
$
|
1,642.7
|
$
|
1,638.8
|
$
|
4,802.8
|
$
|
4,973.5
|
||||||||
Proceeds from asset sales
|
4.3
|
0.7
|
8.4
|
16.8
|
||||||||||||
Monetization of interest rate derivative instruments accounted
for as cash flow hedges
|
–
|
–
|
(33.3
|
)
|
–
|
|||||||||||
DCF (non-GAAP)
|
$
|
1,647.0
|
$
|
1,639.5
|
$
|
4,777.9
|
$
|
4,990.3
|
||||||||
|
||||||||||||||||
Cash distributions paid to common unitholders with respect to period
|
$
|
978.5
|
$
|
974.4
|
$
|
2,938.1
|
$
|
2,907.0
|
||||||||
|
||||||||||||||||
Cash distribution per common unit declared by Enterprise GP with respect to period (5)
|
$
|
0.4450
|
$
|
0.4425
|
$
|
1.3350
|
$
|
1.3200
|
||||||||
|
||||||||||||||||
Total DCF retained by the Partnership with respect to period (6)
|
$
|
668.5
|
$
|
665.1
|
$
|
1,839.8
|
$
|
2,083.3
|
||||||||
|
||||||||||||||||
Distribution coverage ratio (7)
|
1.7
|
x
|
1.7
|
x
|
1.6
|
x
|
1.7
|
x
|
(1)
|
For a discussion of the primary drivers of changes in our comparative income statement amounts, see “Income Statement Highlights” within this Part I, Item 2.
|
(2)
|
Reflects distributions received from unconsolidated affiliates attributable to earnings and the return of capital.
|
(3)
|
Sustaining capital expenditures include cash payments and accruals applicable to the period.
|
(4)
|
Represents DCF before proceeds from asset sales and the monetization of interest rate derivative instruments accounted for as cash flow hedges.
|
(5)
|
See Note 8 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report for additional information regarding our quarterly cash distributions declared with respect to the years indicated.
|
(6)
|
At the sole discretion of Enterprise GP, cash retained by the partnership with respect to each of these periods was primarily reinvested in growth capital projects. This retainage of cash substantially reduced our reliance on the equity capital markets to fund such expenditures.
|
(7)
|
Distribution coverage ratio is determined by dividing DCF by total cash distributions paid to common unitholders and in connection with distribution equivalent rights with respect to the period.
|
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Net cash flows provided by operating activities (GAAP)
|
$
|
1,097.8
|
$
|
1,642.5
|
$
|
4,291.6
|
$
|
4,826.2
|
||||||||
Adjustments to reconcile net cash flows provided by operating activities to DCF (addition or subtraction indicated by sign):
|
||||||||||||||||
Net effect of changes in operating accounts
|
603.0
|
77.0
|
692.0
|
409.0
|
||||||||||||
Sustaining capital expenditures
|
(83.1
|
)
|
(90.8
|
)
|
(226.0
|
)
|
(232.5
|
)
|
||||||||
Distributions received from unconsolidated affiliates attributable
to the return of capital
|
66.9
|
30.5
|
124.9
|
53.9
|
||||||||||||
Proceeds from asset sales
|
4.3
|
0.7
|
8.4
|
16.8
|
||||||||||||
Net income attributable to noncontrolling interest
|
(31.4
|
)
|
(25.6
|
)
|
(82.4
|
)
|
(67.3
|
)
|
||||||||
Monetization of interest rate derivative instruments accounted
for as cash flow hedges
|
–
|
–
|
(33.3
|
)
|
–
|
|||||||||||
Other, net
|
(10.5
|
)
|
5.2
|
2.7
|
(15.8
|
)
|
||||||||||
DCF (non-GAAP)
|
$
|
1,647.0
|
$
|
1,639.5
|
$
|
4,777.9
|
$
|
4,990.3
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
For the Twelve Months Ended
September 30,
|
||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
2020
|
||||||||||||||||
Net cash flows provided by operating activities (GAAP)
|
$
|
1,097.8
|
$
|
1,642.5
|
$
|
4,291.6
|
$
|
4,826.2
|
$
|
5,985.9
|
||||||||||
Adjustments to net cash flows provided by operating activities to derive FCF (addition or subtraction indicated by sign):
|
||||||||||||||||||||
Cash used in investing activities
|
(633.7
|
)
|
(1,086.3
|
)
|
(2,564.2
|
)
|
(3,372.8
|
)
|
(3,766.9
|
)
|
||||||||||
Cash contributions from noncontrolling interests
|
1.5
|
491.2
|
21.2
|
590.8
|
63.2
|
|||||||||||||||
Cash distributions paid to noncontrolling interests
|
(36.0
|
)
|
(22.8
|
)
|
(97.8
|
)
|
(69.7
|
)
|
(134.3
|
)
|
||||||||||
FCF (non-GAAP)
|
$
|
429.6
|
$
|
1,024.6
|
$
|
1,650.8
|
$
|
1,974.5
|
$
|
2,147.9
|
|
For the Nine Months
Ended September 30,
|
|||||||
|
2020
|
2019
|
||||||
Capital investments for property, plant and equipment: (1)
|
||||||||
Growth capital projects (2)
|
$
|
2,440.2
|
$
|
3,072.4
|
||||
Sustaining capital projects (3)
|
231.4
|
229.7
|
||||||
Total
|
$
|
2,671.6
|
$
|
3,302.1
|
||||
Investments in unconsolidated affiliates
|
$
|
9.9
|
$
|
100.1
|
(1)
|
Growth and sustaining capital amounts presented in the table above are presented on a cash basis.
|
(2)
|
Growth capital projects either (a) result in new sources of cash flow due to enhancements of or additions to existing assets (e.g., additional revenue streams, cost savings resulting from debottlenecking of a facility, etc.) or (b) expand our asset base through construction of new facilities that will generate additional revenue streams and cash flows.
|
(3)
|
Sustaining capital expenditures are capital expenditures (as defined by GAAP) resulting from improvements to existing assets. Such expenditures serve to maintain existing operations but do not generate additional revenues or result in significant cost savings.
|
• |
completion of projects at our Mont Belvieu complex, which accounted for a $510.6 million decrease and included placing into service our iBDH facility (December 2019), Frac X (March 2020) and Frac XI (September 2020);
|
• |
completion of the Shin Oak NGL Pipeline (in stages through the fourth quarter of 2019), which accounted for a $316.4 million decrease;
|
• |
lower investments in natural gas processing facilities and related infrastructure that support Permian Basin production, which accounted for a $274.5 million decrease. We completed the final phase of our Orla plant in July 2019 and placed our Mentone plant into service in December 2019; and
|
• |
lower investments in projects attributable to our ethylene business, which accounted for a $129.0 million decrease; partially offset by,
|
• |
higher investments in our PDH 2 facility, which accounted for a $293.7 million increase;
|
• |
higher investments in crude oil pipelines, including those expanding our Midland-to-ECHO System, and related infrastructure that support Permian Basin production, which accounted for a combined $98.8 million increase; and
|
• |
higher investments in natural gas pipelines and related infrastructure in support of East Texas and Louisiana production, which accounted for a $50.9 million increase.
|
• |
depreciation methods and estimated useful lives of property, plant and equipment;
|
• |
measuring recoverability of long-lived assets and equity method investments;
|
• |
amortization methods and estimated useful lives of qualifying intangible assets;
|
• |
methods we employ to measure the fair value of goodwill; and
|
• |
revenue recognition policies and the use of estimates for revenue and expenses.
|
• |
the derivative instrument functions effectively as a hedge of the underlying risk;
|
• |
the derivative instrument is not closed out in advance of its expected term; and
|
• |
the hedged forecasted transaction occurs within the expected time period.
|
|
Volume (1)
|
Accounting
|
|
Derivative Purpose
|
Current (2)
|
Long-Term (2)
|
Treatment
|
Derivatives designated as hedging instruments:
|
|||
Natural gas processing:
|
|||
Forecasted natural gas purchases for plant thermal reduction (billion cubic feet (“Bcf”))
|
7.4
|
n/a
|
Cash flow hedge
|
Forecasted sales of NGLs (million barrels (“MMBbls”)) (3)
|
1.1
|
n/a
|
Cash flow hedge
|
Octane enhancement:
|
|||
Forecasted purchase of NGLs (MMBbls)
|
0.3
|
n/a
|
Cash flow hedge
|
Forecasted sales of octane enhancement products (MMBbls)
|
1.2
|
n/a
|
Cash flow hedge
|
Natural gas marketing:
|
|||
Natural gas storage inventory management activities (Bcf)
|
5.2
|
n/a
|
Fair value hedge
|
NGL marketing:
|
|||
Forecasted purchases of NGLs and related hydrocarbon products (MMBbls)
|
143.3
|
5.6
|
Cash flow hedge
|
Forecasted sales of NGLs and related hydrocarbon products (MMBbls)
|
179.7
|
16.6
|
Cash flow hedge
|
NGLs inventory management activities (MMBbls)
|
0.8
|
0.7
|
Fair value hedge
|
Refined products marketing:
|
|
||
Forecasted purchases of refined products (MMBbls)
|
46.8
|
8.1
|
Cash flow hedge
|
Forecasted sales of refined products (MMBbls)
|
54.0
|
11.5
|
Cash flow hedge
|
Refined products inventory management activities (MMBbls)
|
0.1
|
n/a
|
Fair value hedge
|
Crude oil marketing:
|
|
||
Forecasted purchases of crude oil (MMBbls)
|
51.0
|
n/a
|
Cash flow hedge
|
Forecasted sales of crude oil (MMBbls)
|
65.2
|
n/a
|
Cash flow hedge
|
Petrochemical marketing:
|
|||
Forecasted sales of petrochemical products (MMBbls)
|
0.3
|
n/a
|
Cash flow hedge
|
Derivatives not designated as hedging instruments:
|
|||
Natural gas risk management activities (Bcf) (4)
|
37.9
|
0.7
|
Mark-to-market
|
NGL risk management activities (MMBbls) (4)
|
26.4
|
10.8
|
Mark-to-market
|
Refined products risk management activities (MMBbls) (4)
|
4.0
|
n/a
|
Mark-to-market
|
Crude oil risk management activities (MMBbls) (4)
|
19.5
|
5.9
|
Mark-to-market
|
(1)
|
Volume for derivatives designated as hedging instruments reflects the total amount of volumes hedged whereas volume for derivatives not designated as hedging instruments reflects the absolute value of derivative notional volumes.
|
(2)
|
The maximum term for derivatives designated as cash flow hedges, derivatives designated as fair value hedges and derivatives not designated as hedging instruments is December 2022, December 2021 and December 2022, respectively.
|
(3)
|
Forecasted NGL sales volumes under natural gas processing exclude 0.3 MMBbls of additional hedges executed under contracts that have been designated as normal sales agreements.
|
(4)
|
Reflects the use of derivative instruments to manage risks associated with our transportation, processing and storage assets.
|
|
|
Portfolio Fair Value at
|
|||||||||||
Scenario
|
Resulting
Classification
|
December 31,
2019
|
September 30,
2020
|
October 15,
2020
|
|||||||||
Fair value assuming no change in underlying commodity prices
|
Asset (Liability)
|
$
|
1.1
|
$
|
6.6
|
$
|
(2.5
|
)
|
|||||
Fair value assuming 10% increase in underlying commodity prices
|
Asset (Liability)
|
(4.3
|
)
|
3.5
|
(6.5
|
)
|
|||||||
Fair value assuming 10% decrease in underlying commodity prices
|
Asset (Liability)
|
6.6
|
9.7
|
1.6
|
|
|
Portfolio Fair Value at
|
|||||||||||
Scenario
|
Resulting
Classification
|
December 31,
2019
|
September 30,
2020
|
October 15,
2020
|
|||||||||
Fair value assuming no change in underlying commodity prices
|
Asset (Liability)
|
$
|
43.7
|
$
|
(255.4
|
)
|
$
|
(298.3
|
)
|
||||
Fair value assuming 10% increase in underlying commodity prices
|
Asset (Liability)
|
(19.0
|
)
|
(394.1
|
)
|
(437.2
|
)
|
||||||
Fair value assuming 10% decrease in underlying commodity prices
|
Asset (Liability)
|
106.4
|
(116.6
|
)
|
(159.3
|
)
|
|
|
Portfolio Fair Value at
|
|||||||||||
Scenario
|
Resulting
Classification
|
December 31,
2019
|
September 30,
2020
|
October 15,
2020
|
|||||||||
Fair value assuming no change in underlying commodity prices
|
Asset (Liability)
|
$
|
(9.6
|
)
|
$
|
(108.0
|
)
|
$
|
(115.4
|
)
|
|||
Fair value assuming 10% increase in underlying commodity prices
|
Asset (Liability)
|
(50.6
|
)
|
(179.1
|
)
|
(190.3
|
)
|
||||||
Fair value assuming 10% decrease in underlying commodity prices
|
Asset (Liability)
|
31.5
|
(37.0
|
)
|
(40.5
|
)
|
Hedged Transaction
|
Number and Type
of Derivatives
Outstanding
|
Notional
Amount
|
Expected
Settlement
Date
|
Weighted-Average
Fixed Rate
Locked
|
Accounting
Treatment
|
Future long-term debt offering
|
1 forward-starting swap
|
$75.0
|
4/2021
|
2.41%
|
Cash flow hedge
|
Future long-term debt offering
|
5 forward-starting swaps
|
$500.0
|
4/2021
|
2.13%
|
Cash flow hedge
|
Future long-term debt offering
|
2 forward-starting swaps (1)
|
$150.0
|
2/2022
|
1.72%
|
Cash flow hedge
|
Future long-term debt offering
|
1 forward starting swap (1)
|
$100.0
|
4/2021
|
1.46%
|
Cash flow hedge
|
Future long-term debt offering
|
2 forward starting swaps (1)
|
$150.0
|
2/2022
|
1.48%
|
Cash flow hedge
|
Future long-term debt offering
|
2 forward starting swaps (1)
|
$100.0
|
2/2022
|
0.95%
|
Cash flow hedge
|
(1)
|
These swaps were entered into during the first quarter of 2020.
|
|
|
Forward-Starting Swap
Portfolio Fair Value at
|
|||||||||||
Scenario
|
Resulting
Classification
|
December 31,
2019
|
September 30,
2020
|
October 15,
2020
|
|||||||||
Fair value assuming no change in underlying interest rates
|
Asset (Liability)
|
$
|
(13.5
|
)
|
$
|
(187.9
|
)
|
$
|
(170.2
|
)
|
|||
Fair value assuming 10% increase in underlying interest rates
|
Asset (Liability)
|
38.2
|
(154.5
|
)
|
(135.7
|
)
|
|||||||
Fair value assuming 10% decrease in underlying interest rates
|
Asset (Liability)
|
(68.3
|
)
|
(222.4
|
)
|
(206.0
|
)
|
(i) |
that our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive and financial officers, as appropriate to allow for timely decisions regarding required disclosures; and
|
(ii) |
that our disclosure controls and procedures are effective.
|
Period
|
Total
Number of Common Units
Purchased
|
Average
Price Paid
per Common
Unit
|
Total
Number of
Common Units
Purchased
as Part of
2019 Buyback
Program
|
Remaining
Dollar
Amount of
Common Units
That May
Be Purchased
Under the 2019 Buyback
Program
($ thousands)
|
|||||||||
2019 Buyback Program: (1)
|
|||||||||||||
July 2020
|
–
|
$
|
–
|
$
|
1,778,911
|
||||||||
August 2020
|
749,057
|
$
|
17.66
|
$
|
1,765,684
|
||||||||
September 2020
|
1,235,450
|
$
|
16.49
|
$
|
1,745,312
|
||||||||
Vesting of phantom unit awards:
|
|||||||||||||
August 2020 (2)
|
23,903
|
$
|
17.65
|
n/a
|
n/a
|
(1)
|
In January 2019, we announced the 2019 Buyback Program, which authorized the repurchase of up to $2 billion of the Partnership’s common units. Common units repurchased under this program during 2020 were cancelled immediately upon acquisition.
|
(2)
|
Of the 112,794 phantom unit awards that vested in August 2020 and converted to common units, 23,903 units were sold back to the Partnership by employees to cover related withholding tax requirements. These repurchases are not part of any announced program. We cancelled these units immediately upon acquisition.
|
Exhibit Number
|
Exhibit*
|
2.1
|
|
2.2
|
|
2.3
|
|
2.4
|
|
2.5
|
|
2.6
|
|
2.7
|
|
2.8
|
|
2.9
|
|
2.10
|
|
2.11
|
2.12
|
|
2.13
|
|
2.14
|
|
3.1
|
|
3.2
|
|
3.3
|
|
3.4
|
|
3.5
|
|
3.6
|
|
3.7
|
|
3.8
|
|
3.9
|
|
3.10
|
|
3.11
|
|
4.1
|
|
4.2
|
|
4.3
|
|
4.4
|
4.5
|
|
4.6
|
|
4.7
|
|
4.8
|
|
4.9
|
|
4.10
|
|
4.11
|
|
4.12
|
|
4.13
|
|
4.14
|
|
4.15
|
|
4.16
|
|
4.17
|
4.18
|
|
4.19
|
|
4.20
|
|
4.21
|
|
4.22
|
|
4.23
|
|
4.24
|
|
4.25
|
|
4.26
|
|
4.27
|
|
4.28
|
|
4.29
|
|
4.30
|
4.31
|
|
4.32
|
|
4.33
|
|
4.34
|
|
4.35
|
|
4.36
|
|
4.37
|
|
4.38
|
|
4.39
|
|
4.40
|
|
4.41
|
|
4.42
|
|
4.43
|
|
4.44
|
|
4.45
|
|
4.46
|
|
4.47
|
|
4.48
|
4.49
|
|
4.50
|
|
4.51
|
|
4.52
|
|
4.53
|
|
4.54
|
|
4.55
|
|
4.56
|
|
4.57
|
|
4.58
|
|
4.59
|
|
4.60
|
|
4.61
|
|
4.62
|
|
4.63
|
|
4.64
|
|
4.65
|
|
4.66
|
4.67
|
|
4.68
|
|
4.69
|
|
4.70
|
|
4.71
|
|
4.72
|
|
4.73
|
|
4.74
|
|
4.75
|
|
4.76
|
|
4.77
|
|
4.78
|
|
4.79
|
|
4.80
|
4.81
|
|
4.82
|
|
4.83
|
|
4.84
|
|
4.85
|
|
4.86
|
|
4.87
|
|
4.88
|
|
4.89
|
|
4.90
|
|
10.1
|
|
10.2
|
|
10.3
|
|
10.4
|
10.5***
|
|
10.6***
|
|
31.1#
|
|
31.2#
|
|
32.1#
|
|
32.2#
|
|
101#
|
Interactive data files pursuant to Rule 405 of Regulation S-T formatted in iXBRL (Inline Extensible Business Reporting Language) in this Form 10-Q includes: (i) the Unaudited Condensed Consolidated Balance Sheets, (ii) the Unaudited Condensed Statements of Consolidated Operations, (iii) the Unaudited Condensed Statements of Consolidated Comprehensive Income, (iv) the Unaudited Condensed Statements of Consolidated Cash Flows, (v) the Unaudited Condensed Statements of Consolidated Equity and (vi) Notes to the Unaudited Condensed Consolidated Financial Statements.
|
104#
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
*
|
With respect to any exhibits incorporated by reference to any Exchange Act filings, the Commission file numbers for Enterprise Products Partners L.P., Enterprise GP Holdings L.P, TEPPCO Partners, L.P. and TE Products Pipeline Company, LLC are 1-14323, 1-32610, 1-10403 and 1-13603, respectively.
|
***
|
Identifies management contract and compensatory plan arrangements.
|
#
|
Filed with this report.
|
ENTERPRISE PRODUCTS PARTNERS L.P.
(A Delaware Limited Partnership)
|
|||
By:
|
Enterprise Products Holdings LLC, as General Partner
|
||
By:
|
/s/ R. Daniel Boss
|
||
Name:
|
R. Daniel Boss
|
||
Title:
|
Executive Vice President – Accounting, Risk Control and Information Technology of the General Partner
|
||
By:
|
/s/ Michael W. Hanson
|
||
Name:
|
Michael W. Hanson
|
||
Title:
|
Vice President and Principal Accounting Officer
of the General Partner
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Enterprise Products Partners L.P;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over
financial reporting.
|
/s/ A. James Teague
|
||
Name:
|
A. James Teague
|
|
Title:
|
Co-Chief Executive Officer of Enterprise Products Holdings LLC, the General Partner of Enterprise Products Partners L.P.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Enterprise Products Partners L.P.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over
financial reporting.
|
/s/ W. Randall Fowler
|
||
Name:
|
W. Randall Fowler
|
|
Title:
|
Co-Chief Executive Officer and Chief Financial Officer of Enterprise Products Holdings LLC, the General Partner of Enterprise Products Partners L.P.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of
the Registrant.
|
/s/ A. James Teague
|
||
Name:
|
A. James Teague
|
|
Title:
|
Co-Chief Executive Officer of Enterprise Products Holdings LLC, the General Partner of Enterprise Products Partners L.P.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of
the Registrant.
|
/s/ W. Randall Fowler
|
||
Name:
|
W. Randall Fowler
|
|
Title:
|
Co-Chief Executive Officer and Chief Financial Officer of Enterprise Products Holdings LLC, the General Partner of Enterprise Products Partners L.P.
|