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SEC Filings
8-K
PANHANDLE EASTERN PIPE LINE CO LP filed this Form 8-K on 11/07/2017
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NGL and Refined Products Transportation and Services
 
Three Months Ended
September 30,
 
2017
 
2016
NGL transportation volumes (MBbls/d)
836

 
766

Refined products transportation volumes (MBbls/d)
612

 
611

NGL and refined products terminal volumes (MBbls/d)
782

 
822

NGL fractionation volumes (MBbls/d)
390

 
338

Revenues
$
2,070

 
$
1,545

Cost of products sold
1,582

 
1,061

Segment margin
488

 
484

Unrealized losses on commodity risk management activities
56

 
21

Operating expenses, excluding non-cash compensation expense
(105
)
 
(109
)
Selling, general and administrative expenses, excluding non-cash compensation expense
(13
)
 
(12
)
Adjusted EBITDA related to unconsolidated affiliates
19

 
21

Inventory valuation adjustments
(22
)
 
(22
)
Segment Adjusted EBITDA
$
423

 
$
383

NGL and refined products transportation volumes increased in the major producing regions, including the Permian, Southeast Texas, Louisiana, Eagle Ford and North Texas. NGL and refined products terminal volumes decreased for the three months ended September 30, 2017 primarily due to the sale of one of our refined product terminals in April 2017.
Average daily fractionated volumes increased 17% compared to the same period last year primarily due to the commissioning of our fourth fractionator at Mont Belvieu, Texas, in October 2016, which has a capacity of 120,000 Bbls/d, as well as increased producer volumes as mentioned above.
Segment Adjusted EBITDA. For the three months ended September 30, 2017 compared to the same period last year, Segment Adjusted EBITDA related to our NGL and refined products transportation and services segment increased due to net impact of the following:
an increase in transportation margin of $20 million primarily due to higher volumes on our Texas NGL pipelines and our Mariner East system;
an increase in fractionation and refinery services margin of $13 million (excluding net changes in unrealized gains and losses of $1 million) primarily due to higher NGL volumes from most major producing regions, as noted above;
an increase in terminal services margin of $7 million due to higher terminal volumes from the Mariner NGL projects; and
a decrease of $4 million in operating expenses primarily due to a legal settlement of $8 million and a quarterly ad valorem tax true-up of $1 million; partially offset by
a decrease of $1 million in marketing margin (excluding net changes in unrealized gains and losses of $36 million) primarily due to the timing of the recognition of margin from optimization activities; and
an increase of $1 million in selling, general and administrative expenses due to higher allocations and lower capitalized overhead resulting from reduced capital spending.

12

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