Print Page | Close Window
SEC Filings
8-K
PANHANDLE EASTERN PIPE LINE CO LP filed this Form 8-K on 08/08/2018
Entire Document
 << Previous Page | Next Page >>


NGL and Refined Products Transportation and Services
 
Three Months Ended
June 30,
 
2018
 
2017
NGL transportation volumes (MBbls/d)
967

 
835

Refined products transportation volumes (MBbls/d)
637

 
643

NGL and refined products terminal volumes (MBbls/d)
789

 
767

NGL fractionation volumes (MBbls/d)
473

 
431

Revenues
$
2,568

 
$
1,779

Cost of products sold
1,981

 
1,263

Segment margin
587

 
516

Unrealized (gains) losses on commodity risk management activities
13

 
(4
)
Operating expenses, excluding non-cash compensation expense
(141
)
 
(125
)
Selling, general and administrative expenses, excluding non-cash compensation expense
(17
)
 
(17
)
Adjusted EBITDA related to unconsolidated affiliates
19

 
18

Segment Adjusted EBITDA
$
461

 
$
388

NGL transportation volumes increased primarily from the Permian region resulting from a ramp up in production from existing customers. Refined products transportation volumes decreased slightly primarily due to lower throughput volumes from the Midwest region due to end user operational issues, partially offset by increased throughput volumes from the Southwest region due to increased demand.
NGL and refined products terminal volumes increased primarily due to more volumes loaded at our Nederland terminal as propane export demand increased, as well as higher refined products throughput volumes at our Eagle Point terminal, partially offset by lower throughput volumes at our Marcus Hook Industrial Complex primarily due to Mariner East 1 system downtime during the second quarter of 2018.
Average fractionated volumes at our Mont Belvieu, Texas fractionation facility increased primarily due to increased volumes from Permian producers.
Segment Adjusted EBITDA. For the three months ended June 30, 2018 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 impacts of the following:
an increase of $49 million in transportation margin due to a $43 million increase resulting from increased producer volumes from the Permian region on our Texas NGL pipelines, an $11 million increase resulting from a reclassification between our transportation and fractionation margins, a $4 million increase due to higher throughput on Mariner West and a $2 million increase on Mariner South primarily due to system downtime in the prior period. These increases were partially offset by an $11 million decrease resulting from lower throughput on Mariner East 1 due to system downtime in the second quarter of 2018;
an increase of $23 million in marketing margin (excluding a net change of $17 million in unrealized gains and losses) due to gains of $10 million from our butane blending operations, a $9 million increase from sales of domestic propane and other products at our Marcus Hook Industrial Complex and a $4 million increase from optimizing sales of purity product from our Mont Belvieu fractionators;
an increase of $11 million in fractionation and refinery services margin due to a $14 million increase resulting from higher NGL volumes from the Permian region feeding our Mont Belvieu fractionation facility, a $6 million increase from blending gains as a result of improved market pricing and a $2 million increase from Mariner South as more cargoes were loaded at Mariner South. These increases were partially offset by an $11 million decrease resulting from a reclassification between our transportation and fractionation margins; and
an increase of $10 million in terminal services margin due to a $7 million increase resulting from a change in the classification of certain customer reimbursements previously recorded as a reduction to operating expenses that are now classified as revenue following the adoption of ASC 606 on January 1, 2018 and a $5 million increase at our Nederland terminal due to increased demand for propane exports. These increases were partially offset by a $2 million decrease due to the effect of Mariner East pipeline system downtime on our Marcus Hook Industrial Complex; partially offset by

11

 << Previous Page | Next Page >>