1 unchanged sentence
RESULTS OF OPERATIONS.
−Removed: For the Three and Six Months Ended June 30, 2023 and 2022
+Added: For the Three and Nine Months Ended September 30, 2023 and 2022
The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and accompanying Notes included in this quarterly report on Form 10-Q and the Audited Consolidated Financial Statements and related Notes, together with our discussion and analysis of financial position and results of operations, included in our annual report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”), as filed on February 28, 2023 with the U.S.
2 unchanged sentences
Cautionary Statement Regarding Forward-Looking Information
−Removed: This quarterly report on Form 10-Q for the three and six months ended June 30, 2023 (our “quarterly report”) contains various forward-looking statements and information that are based on our beliefs and those of our general partner, as well as assumptions made by us and information currently available to us.
+Added: This quarterly report on Form 10-Q for the three and nine months ended September 30, 2023 (our “quarterly report”) contains various forward-looking statements and information that are based on our beliefs and those of our general partner, as well as assumptions made by us and information currently available to us.
When used in this document, words such as “anticipate,” “project,” “expect,” “plan,” “seek,” “goal,” “estimate,” “forecast,” “intend,” “could,” “should,” “would,” “will,” “believe,” “may,” “scheduled,” “pending,” “potential” and similar expressions and statements regarding our plans and objectives for future operations are intended to identify forward-looking statements.
28 unchanged sentences
We, Enterprise GP, EPCO and Dan Duncan LLC are affiliates under the collective common control of the DD LLC Trustees and the EPCO Trustees.
−Removed: EPCO, together with its privately held affiliates, owned approximately 32.3% of the Partnership’s common units outstanding at June 30, 2023.
+Added: EPCO, together with its privately held affiliates, owned approximately 32.3% of the Partnership’s common units outstanding at September 30, 2023.
As generally used in the energy industry and in this quarterly report, the acronyms below have the following meanings:
10 unchanged sentences
trillion British thermal units
−Removed: As used in this quarterly report, the phrase “quarter-to-quarter” means the second quarter of 2023 compared to the second quarter of 2022.
−Removed: Likewise, the phrase “period-to-period” means the six months ended June 30, 2023 compared to the six months ended June 30, 2022.
+Added: As used in this quarterly report, the phrase “quarter-to-quarter” means the third quarter of 2023 compared to the third quarter of 2022.
+Added: Likewise, the phrase “period-to-period” means the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022.
Overview of Business
22 unchanged sentences
Recent Developments
+Added: Enterprise Announces Permian Growth Projects;
+Added: Conversion of Crude Oil Pipeline back to NGL Service
+Added: In October 2023, we announced the following four new projects to support ongoing production growth in the Permian Basin (including their respective scheduled completion dates):
+Added: the Bahia NGL Pipeline (first half of 2025);
+Added: our Mentone 4 natural gas processing plant in the Delaware Basin (second half of 2025);
+Added: our Orion natural gas processing plant in the Midland Basin (second half of 2025);
+Added: an NGL fractionator (“Frac 14”) and an associated deisobutanizer (“DIB”) unit in Chambers County, TX (second half of 2025)
+Added: In addition, we have taken initial steps to convert the Midland-to-Sealy segment of the Midland-to-ECHO 2 pipeline back to NGL service (as part of our Seminole NGL Pipeline).
+Added: We expect this conversion to be completed in December 2023.
Enterprise Begins Service At PDH 2 Plant
3 unchanged sentences
Enterprise Begins Service At Its Twelfth NGL Fractionator in Chambers County, Texas
−Removed: In July 2023, our twelfth NGL fractionator (“Frac XII”) located in Chambers County, Texas was placed into service.
−Removed: The incremental 150 MBPD of nameplate capacity at Frac XII will help accommodate growing NGL production from new natural gas processing plants in the Permian Basin and help satisfy the demand for feedstocks by the petrochemical and refining industries and LPG exports to developing nations.
−Removed: Supported by long-term customer agreements, the addition of Frac XII increases total NGL fractionation capacity to approximately 1.2 MMBPD at our Chambers County complex and approximately 1.7 MMBPD company-wide.
+Added: In July 2023, our twelfth NGL fractionator (“Frac 12”) located in Chambers County, Texas was placed into service.
+Added: The incremental 150 MBPD of nameplate capacity at Frac 12 will help accommodate growing NGL production from new natural gas processing plants in the Permian Basin and help satisfy the demand for feedstocks by the petrochemical and refining industries and LPG exports to developing nations.
+Added: Supported by long-term customer agreements, the addition of Frac 12 increases total NGL fractionation capacity to approximately 1.2 MMBPD at our Chambers County complex and approximately 1.7 MMBPD company-wide.
Enterprise Begins Service At Its Poseidon Natural Gas Processing Plant
30 unchanged sentences
In addition, the actual gas processing spread earned at each plant is further influenced by regional pricing and extraction dynamics.
−Removed: The weighted-average indicative market price for NGLs was $0.55 per gallon in the second quarter of 2023 versus $1.06 per gallon in the second quarter of 2022.
−Removed: Likewise, the weighted-average indicative market price for NGLs was $0.61 per gallon during the six months ended June 30, 2023 compared to $1.01 per gallon during the same period in 2022.
+Added: The weighted-average indicative market price for NGLs was $0.61 per gallon in the third quarter of 2023 versus $0.95 per gallon in the third quarter of 2022.
+Added: Likewise, the weighted-average indicative market price for NGLs was $0.61 per gallon during the nine months ended September 30, 2023 compared to $0.99 per gallon during the same period in 2022.
The following table presents selected average index prices for crude oil for the periods indicated:
28 unchanged sentences
For the Three Months
−Removed: Ended June 30,
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: Ended September 30,
+Added: For the Nine Months
+Added: Ended September 30,
Costs and expenses:
20 unchanged sentences
For the Three Months
−Removed: Ended June 30,
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: Ended September 30,
+Added: For the Nine Months
+Added: Ended September 30,
NGL Pipelines & Services:
11 unchanged sentences
Total consolidated revenues
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022.
−Removed: Total revenues for the second quarter of 2023 decreased $ 5.4 billion when compared to the second quarter of 2022 primarily due to a $ 5.3 billion decrease in marketing revenues.
−Removed: Revenues from the marketing of NGLs decreased $ 2.5 billion quarter-to-quarter primarily due to lower average sales prices, which accounted for a $ 2.3 billion decrease, and lower sales volumes, which accounted for an additional $ 229 million decrease.
−Removed: Revenues from the marketing of crude oil, natural gas and petrochemicals and refined products decreased a combined net $ 2.7 billion quarter-to-quarter primarily due to lower average sales prices, which accounted for a $ 3.5 b illion decrease, partially offset by higher sales volumes, which accounted for a $ 760 million increase.
−Removed: Revenues from midstream services for the second quarter of 2023 decreased a net $ 150 million when compared to the second quarter of 2022.
−Removed: Revenues from our natural gas processing facilities decreased $ 148 million quarter-to-quarter primarily due to lower market values for the equity NGL-equivalent production volumes we receive as non-cash consideration for processing services.
−Removed: R evenues from our crude oil pipeline assets decreased $ 49 million quarter-to-quarter primarily due to lower deficiency revenues as a result of the expiration of minimum volume commitments under certain long-term gathering agreements on our EFS Midstream System.
−Removed: Lastly, revenues from our NGL, natural gas and petrochemicals and refined products pipeline assets increased a combined $ 57 million quarter-to-quarter primarily due to higher demand for transportation services.
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Total revenues for the six months ended June 30, 2023 decreased $ 6.0 billion when compared to the six months ended June 30, 2022 primarily due to a $ 5.8 billion decrease in marketing revenues.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022.
+Added: Total revenues for the third quarter of 2023 decreased a net $ 3.5 billion when compared to the third quarter of 2022 primarily due to lower marketing revenues.
+Added: Revenues from the marketing of NGLs and petrochemicals and refined products decreased a combined $ 3.2 billion quarter-to-quarter primarily due to lower average sales prices, which accounted for a $ 2.9 billion decrease, and lower sales volumes, which accounted for an additional $ 265 million decrease.
+Added: Revenues from the marketing of natural gas decreased $1.0 billion quarter-to-quarter primarily due to lower average sales prices.
+Added: Revenues from the marketing of crude oil increased a net $613 million quarter-to-quarter primarily due to higher sales volumes, which accounted for a $ 1.4 b illion increase, partially offset by lower average sales prices, which accounted for a $ 837 million decrease.
+Added: Revenues from midstream services for the third quarter of 2023 increased $ 133 million when compared to the third quarter of 2022.
+Added: R evenues from our NGL, natural gas and petrochemicals and refined products pipeline assets increased a combined $66 million quarter-to-quarter primarily due to higher demand for transportation services.
+Added: Revenues from our Chambers County propylene production facilities increased $38 million quarter-to-quarter primarily due to higher propylene processing revenues as a result of contributions from our PDH 2 facility, which was placed into service in July 2023.
+Added: Lastly, revenues from our natural gas processing facilities increased $ 27 million quarter-to-quarter primarily due to an increase in total fee-based natural gas processing volumes as a result of the addition of Poseidon, which was placed into service in July 2023.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Total revenues for the nine months ended September 30, 2023 decreased $9.4 billion when compared to the nine months ended September 30, 2022 primarily due to lower marketing revenues.
Revenues from the marketing of NGLs decreased $5.8 billion period-to-period primarily due to lower average sales prices.
Revenues from the marketing of crude oil, natural gas and petrochemicals and refined products decreased a combined net $3.6 billion period-to-period primarily due to lower average sales prices, which accounted for a $6.8 billion decrease, partially offset by higher sales volumes, which accounted for a $3.2 billion increase.
−Removed: Revenues from midstream services for the six months ended June 30, 2023 decreased a net $ 174 million when compared to the six months ended June 30, 2022.
+Added: Revenues from midstream services for the nine months ended September 30, 2023 decreased a net $41 million when compared to the nine months ended September 30, 2022.
Revenues from our natural gas processing facilities decreased $153 million period-to-period primarily due to lower market values for the equity NGL-equivalent production volumes we receive as non-cash consideration for processing services.
−Removed: Revenues from our crude oil pipeline assets decreased $ 133 million period-to-period primarily due to lower deficiency revenues as a result of the aforementioned expiration of minimum volume commitments on our EFS Midstream System.
−Removed: Lastly, revenues from our natural gas pipeline assets increased $ 127 million period-to-period primarily due to higher demand for transportation services and the addition of the Midland Basin Gathering System, which was acquired in February 2022.
+Added: Revenues from our crude oil pipeline assets decreased $101 million period-to-period primarily due to lower deficiency revenues as a result of the expiration of minimum volume commitments under certain long-term gathering agreements on our EFS Midstream System and South Texas Crude Oil Pipeline System.
+Added: Lastly, revenues from our NGL and natural gas pipeline assets increased a combined $233 million period-to-period primarily due to higher demand for transportation services and the addition of the Midland Basin Gathering System, which was acquired in February 2022.
Operating costs and expenses
−Removed: Total operating costs and expenses for the three and six months ended June 30, 2023 decreased $ 5.2 billion and $ 5.8 billion, respectively, when compared to the same periods in 2022.
+Added: Total operating costs and expenses for the three and nine months ended September 30, 2023 decreased $3.4 billion and $9.3 billion, respectively, when compared to the same periods in 2022.
Cost of sales
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022.
−Removed: Cost of sales for the second quarter of 2023 decreased $ 5.2 b illion when compared to the second quarter of 2022.
−Removed: The cost of sales associated with the marketing of NGLs decreased $ 2.9 billion quarter-to-quarter primarily due to lower average purchase prices, which accounted for a $ 2.7 billion decrease, and lower volumes, which accounted for an additional $ 235 million decrease.
−Removed: The cost of sales associated with the marketing of crude oil, natural gas and petrochemicals and refined products decreased a combined net $ 2.3 billion primarily due to lower average purchase prices, which accounted for a $ 3.0 billion decrease, partially offset by higher volumes, which accounted for a $ 676 million increase.
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Cost of sales for the six months ended June 30, 2023 decreased $ 6.0 billion when compared to the six months ended June 30, 2022.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022.
+Added: Cost of sales for the third quarter of 2023 decreased a net $3.5 b illion when compared to the third quarter of 2022.
+Added: The cost of sales associated with the marketing of NGLs and petrochemicals and refined products decreased a combined $3.6 billion quarter-to-quarter primarily due to lower average purchase prices, which accounted for a $3.4 billion decrease, and lower volumes, which accounted for an additional $240 million decrease.
+Added: The cost of sales associated with the marketing of natural gas decreased $520 million primarily due to lower average purchase prices.
+Added: The cost of sales associated with the marketing of crude oil increased a net $641 million primarily due to higher volumes, which accounted for a $1.2 billion increase, partially offset by lower average purchase prices, which accounted for a $620 million decrease.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Cost of sales for the nine months ended September 30, 2023 decreased $9.5 billion when compared to the nine months ended September 30, 2022.
The cost of sales associated with our marketing of NGLs decreased $6.4 billion period-to-period primarily due to lower average purchase prices.
1 unchanged sentence
Other operating costs and expenses
−Removed: Other operating costs and expenses for the second quarter of 2023 increased a net $ 11 million when compared to the second quarter of 2022 primarily due to higher maintenance, rental and other operating costs, which accounted for a $71 million increase, partially offset by lower utility costs, which accounted for a $60 million decrease.
−Removed: Other operating costs and expenses for the six months ended June 30, 2023 increased $ 122 million when compared to the six months ended June 30, 2022 primarily due to higher maintenance, rental and other operating costs, which accounted for a $183 million increase, partially offset by lower utility costs, which accounted for a $61 million decrease.
+Added: Other operating costs and expenses for the third quarter of 2023 increased $60 million when compared to the third quarter of 2022 primarily due to higher maintenance, rental, employee compensation and other operating costs.
+Added: Other operating costs and expenses for the nine months ended September 30, 2023 increased a net $182 million when compared to the nine months ended September 30, 2022 primarily due to higher maintenance, rental, employee compensation and other operating costs, which accounted for a $252 million increase, partially offset by lower utility costs, which accounted for a $70 million decrease.
Depreciation, amortization and accretion expenses
−Removed: Depreciation, amortization and accretion expense for the three and six months ended June 30, 2023 increased a combined $ 18 million and $ 39 million, respectively, when compared to the same periods in 2022.
−Removed: Depreciation expense increased $ 8 million quarter-to-quarter and $ 21 million period-to-period primarily due to the addition of assets attributable to the acquisition of our Midland Basin System in February 2022 and other assets placed into full or limited service since the end of the respective periods in 2022.
+Added: Depreciation, amortization and accretion expense for the three and nine months ended September 30, 2023 increased a combined $46 million and $85 million, respectively, when compared to the same periods in 2022.
+Added: Depreciation expense increased $29 million quarter-to-quarter and $49 million period-to-period primarily due to the addition of our PDH 2 facility, which was placed into service in July 2023, assets attributable to the acquisition of our Midland Basin System in February 2022 and other assets placed into full or limited service since the end of the respective periods in 2022.
Additionally, amortization expense associated with our contract-based intangible assets accounted for an additional $7 million of the quarter-to-quarter increase and $17 million of the period-to-period increase .
General and administrative costs
−Removed: General and administrative costs for the three and six months ended June 30, 2023 decreased $ 6 million and $ 11 million, respectively, when compared to the same periods in 2022 primarily due to lower employee compensation and professional services costs.
+Added: General and administrative costs for the third quarter of 2023 increased $4 million when compared to the third quarter of 2022 primarily due to higher employee compensation costs.
+Added: General and administrative costs for the nine months ended September 30, 2023 decreased $7 million when compared to the same period in 2022 primarily due to lower professional services and employee compensation costs.
Equity in income of unconsolidated affiliates
−Removed: Equity income from our unconsolidated affiliates for the three and six months ended June 30, 2023 increased $ 14 million and $ 1 million, respectively, when compared to the same periods in 2022 primarily due to higher earnings from investments in crude oil pipelines.
+Added: Equity income from our unconsolidated affiliates for the three and nine months ended September 30, 2023 increased $11 million and $12 million, respectively, when compared to the same periods in 2022 primarily due to higher earnings from investments in crude oil pipelines.
Operating income
−Removed: Operating income for the three and six months ended June 30, 2023 decreased $ 185 million and $ 117 million, respectively, when compared to the same periods in 2022 due to the previously described quarter-to-quarter and period-to-period changes.
+Added: Operating income for the three and nine months ended September 30, 2023 decreased $17 million and $134 million, respectively, when compared to the same periods in 2022 due to the previously described quarter-to-quarter and period-to-period changes.
Interest expense
1 unchanged sentence
For the Three Months
−Removed: Ended June 30,
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: Ended September 30,
+Added: For the Nine Months
+Added: Ended September 30,
Interest charged on debt principal outstanding (1)
1 unchanged sentence
Interest costs capitalized in connection with construction projects (2)
−Removed: The weighted-average interest rates on debt principal outstanding during the three and six months ended June 30, 2023 were 4.58% and 4.57%, respectively.
−Removed: The weighted-average interest rate on debt principal outstanding during each of the three and six months ended June 30, 2022 was 4.31%.
+Added: The weighted-average interest rates on debt principal outstanding during the three and nine months ended September 30, 2023 were 4.55% and 4.57%, respectively.
+Added: The weighted-average interest rate on debt principal outstanding during each of the three and nine months ended September 30, 2022 were 4.33% and 4.32%, respectively.
We capitalize interest costs incurred on funds used to construct property, plant and equipment while the asset is in its construction phase.
4 unchanged sentences
This increase was primarily due to the issuance of $1.75 billion fixed-rate senior notes in January 2023, which accounted for a $23 million increase, partially offset by a $13 million decrease as a result of the retirement of $1.25 billion of fixed-rate senior notes in March 2023 and the redemption of $350 million of junior subordinated notes in August 2022 .
−Removed: In addition, interest expense on our outstanding variable-rate junior subordinated notes increased $ 6 million primarily due to a quarter-to-quarter increase in the 3-month LIBOR.
+Added: In addition, interest expense on our outstanding variable-rate junior subordinated notes increased $5 million primarily due to a quarter-to-quarter increase in the applicable 3-month variable rate.
+Added: Beginning on July 1, 2023, our junior subordinated notes subject to a variable rate replaced the applicable LIBOR Rate with the 3-month CME Term SOFR plus a 0.26161% tenor spread adjustment.
Interest charged on debt principal outstanding increased a net $52 million period-to-period.
−Removed: This increase was primarily due to the aforementioned issuance of senior notes, which accounted for a $43 million increase, partially offset by a $26 million decrease as a result of the retirement of $1.4 billion and $1.25 billion of fixed-rate senior notes in February 2022 and March 2023, respectively, and the aforementioned junior subordinated notes .
−Removed: In addition, interest expense on our outstanding variable-rate junior subordinated notes increased $ 11 million primarily due to a period-to-period increase in the 3-month LIBOR.
+Added: This increase was primarily due to the aforementioned issuance of senior notes, which accounted for a $66 million increase, partially offset by a $40 million decrease as a result of the retirement of $1.4 billion and $1.25 billion of fixed-rate senior notes in February 2022 and March 2023, respectively, and the redemption of the aforementioned junior subordinated notes in August 2022 .
+Added: In addition, interest expense on our outstanding variable-rate junior subordinated notes increased $16 million primarily due to a period-to-period increase in the applicable 3-month variable rate.
For additional information regarding our debt obligations, see Note 7 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.
1 unchanged sentence
Our income taxes are primarily comprised of our state tax obligations under the Revised Texas Franchise Tax (“Texas Margin Tax”).
−Removed: Our provision for income taxes for the three and six months ended June 30, 2023 decreased $ 4 million  
−Removed: and $ 13 million, respectively, when compared to the same periods in 2022.
+Added: Our provision for income taxes for the three and nine months ended September 30, 2023 increased $4 million  
+Added: and decreased $9 million, respectively, when compared to the same periods in 2022.
Business Segment Highlights
7 unchanged sentences
For the Three Months
−Removed: Ended June 30,
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: Ended September 30,
+Added: For the Nine Months
+Added: Ended September 30,
Gross operating margin by segment:
16 unchanged sentences
For the Three Months
−Removed: Ended June 30,
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: Ended September 30,
+Added: For the Nine Months
+Added: Ended September 30,
Operating income
16 unchanged sentences
For the Three Months
−Removed: Ended June 30,
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: Ended September 30,
+Added: For the Nine Months
+Added: Ended September 30,
Segment gross operating margin:
13 unchanged sentences
Natural gas processing and related NGL marketing activities
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022 .
−Removed: Gross operating margin from natural gas processing and related NGL marketing activities for the second quarter of 2023 decreased $277 million when compared to the second quarter of 2022.
−Removed: Gross operating margin from our NGL marketing activities decreased $102 million quarter-to-quarter primarily due to lower average sales margins, which accounted for a $76 million decrease, and lower sales volumes, which accounted for an additional $33 million decrease.
−Removed: Gross operating margin from our Midland Basin natural gas processing facilities decreased a net $88 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities), which accounted for a $108 million decrease, partially offset by a 190 MMcf/d increase in fee-based natural gas processing volumes, which accounted for a $21 million increase.
−Removed: Equity NGL-equivalent production volumes at these facilities were flat quarter-to-quarter.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022 .
+Added: Gross operating margin from natural gas processing and related NGL marketing activities for the third quarter of 2023 decreased $192 million when compared to the third quarter of 2022.
+Added: Gross operating margin from our NGL marketing activities decreased $77 million quarter-to-quarter primarily due to lower average sales margins, which accounted for a $61 million decrease, and lower non-cash, mark-to-market earnings, which accounted for an additional $16 million decrease.
+Added: Gross operating margin from our Midland Basin natural gas processing facilities decreased a net $65 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities), which accounted for a $70 million decrease, and higher utility and other operating expenses, which accounted for an additional $8 million decrease, partially offset by higher fee-based natural gas processing volumes, which accounted for a $13 million increase.
+Added: Fee-based processing volumes at our Midland Basin natural gas processing facilities increased 212 MMcf/d quarter-to-quarter primarily due to processing volumes contributed by our Poseidon natural gas processing plant, which was placed into service in July 2023.
Gross operating margin from our Delaware Basin natural gas processing facilities decreased $35 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities).
−Removed: Fee-based natural gas processing volumes at these facilities increased 64 MMcf/d and equity NGL-equivalent production volumes decreased 3 MBPD quarter-to-quarter.
−Removed: Gross operating margin from our South Texas natural gas processing facilities decreased $29 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities).
−Removed: Fee-based natural gas processing volumes increased 28 MMcf/d and equity NGL-equivalent production volumes decreased 2 MBPD quarter-to-quarter.
−Removed: Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined $20 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities).
−Removed: On a combined basis, fee-based natural gas processing volumes and equity NGL-equivalent production volumes decreased 74 MMcf/d and 10 MBPD, respectively, quarter-to-quarter.
−Removed: Gross operating margin from our Louisiana and Mississippi natural gas processing facilities decreased $7 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities).
−Removed: Fee-based natural gas processing volumes increased 195 MMcf/d and equity NGL-equivalent production volumes decreased 7 MBPD quarter-to-quarter (net to our interest).
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Gross operating margin from natural gas processing and related NGL marketing activities for the six months ended June 30, 2023 decreased $366 million when compared to the six months ended June 30, 2022.
−Removed: Gross operating margin from our NGL marketing activities decreased a net $179 million period-to-period primarily due to lower average sales margins, which accounted for a $152 million decrease, and lower sales volumes, which accounted for an additional $39 million decrease, partially offset by higher non-cash, mark-to-market earnings, which accounted for a $12 million increase.
+Added: Fee-based natural gas processing volumes and equity NGL-equivalent production volumes at these facilities decreased 14 MMcf/d and 2 MBPD, respectively, quarter-to-quarter.
+Added: Gross operating margin from our South Texas natural gas processing facilities decreased a net $4 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities), which accounted for a $5 million decrease, and a 6 MBPD decrease in equity NGL-equivalent production volumes, which accounted for an additional $5 million decrease, partially offset by a 181 MMcf/d increase in fee-based natural gas processing volumes, which accounted for a $3 million increase, and lower maintenance and other operating costs, which accounted for an additional $3 million increase.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Gross operating margin from natural gas processing and related NGL marketing activities for the nine months ended September 30, 2023 decreased $558 million when compared to the nine months ended September 30, 2022.
+Added: Gross operating margin from our NGL marketing activities decreased $256 million period-to-period primarily due to lower average sales margins, which accounted for a $218 million decrease, and lower sales volumes, which accounted for an additional $35 million decrease.
Gross operating margin from our Midland Basin natural gas processing facilities decreased a net $146 million period-to-period primarily due to lower average processing margins (including the impact of hedging activities), which accounted for a $204 million decrease, and higher operating costs, which accounted for an additional $20 million decrease, partially offset by an increase in total equity NGL-equivalent production volumes, which accounted for a $24 million increase, and an increase in total fee-based natural gas processing volumes, which accounted for an additional $56 million increase.
−Removed: Fee-based natural gas processing volumes at these facilities, which reflect the average daily operating rates from the time the asset was acquired, increased 162 MMcf/d and equity NGL-equivalent production volumes were flat period-to-period.
+Added: Fee-based natural gas processing volumes at these facilities, which reflect the average daily operating rates from the time the asset was acquired, increased 173 MMcf/d and equity NGL-equivalent production volumes increased 1 MBPD period-to-period.
Gross operating margin from our Delaware Basin natural gas processing facilities decreased $86 million period-to-period primarily due to lower average processing margins (including the impact of hedging activities).
−Removed: Fee-based natural gas processing volumes at these facilities increased 130  
−Removed: MMcf/d and equity NGL-equivalent production volumes decreased 2 MBPD period-to-period .
+Added: Fee-based natural gas processing volumes at these facilities increased 81 MMcf/d and equity NGL-equivalent production volumes decreased 3 MBPD period-to-period .
Gross operating margin from our South Texas natural gas processing facilities decreased $40 million period-to-period primarily due to lower average processing margins (including the impact of hedging activities), which accounted for a $33 million decrease, and higher maintenance and other operating costs, which accounted for an additional $7 million decrease.
−Removed: Fee-based natural gas processing volumes and equity NGL-equivalent production volumes increased 53 MMcf/d and 2 MBPD, respectively, period-to-period.
+Added: Fee-based natural gas processing volumes increased 96 MMcf/d and equity NGL-equivalent production volumes decreased 1 MBPD period-to-period.
Gross operating margin from our Louisiana and Mississippi natural gas processing facilities decreased $16 million  
1 unchanged sentence
Fee-based natural gas processing volumes increased 206 MMcf/d and equity NGL-equivalent production volumes decreased 3 MBPD period-to-period (net to our interest).
−Removed: On a combined basis, gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a net $4 million period-to-period primarily due to a 16 MBPD decrease in equity NGL-equivalent production volumes, which accounted for a $13 million decrease, partially offset by higher average processing fees, which accounted for a $5 million increase.
+Added: On a combined basis, gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased $10 million period-to-period primarily due to a 10 MBPD decrease in equity NGL-equivalent production volumes.
Fee-based natural gas processing volumes decreased a combined 48 MMcf/d period-to-period.
NGL pipelines, storage and terminals
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022 .
−Removed: Gross operating margin from our NGL pipelines, storage and terminal assets during the second quarter of 2023 increased $59 million when compared to the second quarter of 2022.
−Removed: Gross operating margin from our Chambers County storage complex increased $13 million quarter-to-quarter primarily due to lower operating costs.
−Removed: Gross operating margin from LPG-related activities at our Enterprise Hydrocarbons Terminal (“EHT”) increased $12 million quarter-to-quarter primarily due to higher average loading fees.
−Removed: LPG export volumes at EHT decreased 4 MBPD quarter-to-quarter.
−Removed: Gross operating margin at our Morgan’s Point Ethane Export Terminal increased $11 million quarter-to-quarter primarily due to a 22 MBPD increase in export volumes, which accounted for a $6 million increase, and higher average loading fees, which accounted for an additional $3 million increase.
−Removed: Gross operating margin from our related Houston Ship Channel Pipeline System increased $6 million quarter-to-quarter primarily due to higher average transportation fees, which accounted for a $3 million increase, and a 59 MBPD increase in transportation volumes, which accounted for an additional $2 million increase.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022 .
+Added: Gross operating margin from our NGL pipelines, storage and terminal assets during the third quarter of 2023 increased $93 million when compared to the third quarter of 2022.
Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined $25 million quarter-to-quarter  
2 unchanged sentences
A number of our pipelines, including the Mid-America Pipeline System, Seminole NGL Pipeline, Chaparral NGL Pipeline, and Shin Oak NGL Pipeline, serve Permian Basin and/or Rocky Mountain producers.
−Removed: On a combined basis, gross operating margin from these pipelines increased a net $2 million quarter-to-quarter primarily due to higher average transportation fees, which accounted for a $6 million increase, and higher other revenues, which accounted for an additional $5 million increase, partially offset by higher operating costs, which accounted for a $9 million decrease.
−Removed: Transportation volumes on these pipelines increased a combined 72 MBPD (net to our interest) quarter-to-quarter.
−Removed: Gross operating margin from our Dixie Pipeline and related terminals decreased $8 million quarter-to-quarter primarily due to higher maintenance and other operating costs.
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Gross operating margin from our NGL pipelines, storage and terminal assets during the six months ended June 30, 2023 increased $183 million when compared to the six months ended June 30, 2022.
−Removed: Gross operating margin from LPG-related activities at EHT increased $37 million period-to-period primarily due to a 68 MBPD increase in LPG export volumes, which accounted for a $17 million increase, and higher average loading fees, which accounted for an additional $15 million increase.
+Added: On a combined basis, gross operating margin from these pipelines increased a net $19 million quarter-to-quarter primarily due to higher average transportation fees, which accounted for a $19 million increase, and a  
+Added: 64 MBPD (net to our interest) increase in transportation volumes, which accounted for an additional $5 million increase, partially offset by lower other revenues, which accounted for a $3 million decrease.
+Added: Gross operating margin from our South Texas NGL Pipeline System increased $14 million quarter-to-quarter primarily due to a 36 MBPD increase in transportation volumes, which accounted for a $7 million increase, and higher average transportation and related fees, which accounted for an additional $7 million increase.
+Added: Gross operating margin from LPG-related activities at our Enterprise Hydrocarbons Terminal (“EHT”) increased $13 million quarter-to-quarter primarily due to higher average loading fees.
+Added: LPG export volumes at EHT increased 9 MBPD quarter-to-quarter.
+Added: Gross operating margin at our Morgan’s Point Ethane Export Terminal increased $9 million quarter-to-quarter primarily due to a 15 MBPD increase in export volumes, which accounted for a $4 million increase, and higher average loading fees, which accounted for an additional $3 million increase.
+Added: Gross operating margin from our related Houston Ship Channel Pipeline System increased $9 million quarter-to-quarter primarily due to higher average transportation fees, which accounted for a $4 million increase, and a 69 MBPD increase in transportation volumes, which accounted for an additional $3 million increase.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Gross operating margin from our NGL pipelines, storage and terminal assets during the nine months ended September 30, 2023 increased $276 million when compared to the nine months ended September 30, 2022.
+Added: On a combined basis gross operating margin for our Eastern ethane pipelines increased $58 million period-to-period  
+Added: primarily due to a combined 82 MBPD increase in transportation volumes.
+Added: Gross operating margin from LPG-related activities at EHT increased $49 million period-to-period primarily due to higher average loading fees, which accounted for a $25 million increase, and a 49 MBPD increase in LPG export volumes, which accounted for an additional $19 million increase.
Gross operating margin at our Morgan’s Point Ethane Export Terminal increased $34 million period-to-period primarily due to a 25 MBPD increase in export volumes, which accounted for a $21 million increase, and higher average loading fees, which accounted for an additional $9 million increase.
Gross operating margin from our related Houston Ship Channel Pipeline System increased $23 million period-to-period primarily due to a 105 MBPD increase in transportation volumes, which accounted for a $14 million increase, and higher average transportation fees, which accounted for an additional $9 million increase.
−Removed: On a combined basis gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased $33 million period-to-period  
−Removed: primarily due to a combined 61 MBPD increase in transportation volumes.
−Removed: Gross operating margin from our South Texas NGL Pipeline System increased $17 million period-to-period primarily due to higher average transportation fees, which accounted for a $6 million increase, higher pipeline capacity fee revenues, which accounted for a $5 million increase, and higher storage and other revenues, which accounted for an additional $5 million increase.
−Removed: Gross operating margin from our Chambers County storage complex increased $9 million period-to-period primarily due to lower operating costs.
−Removed: On a combined basis, gross operating margin for our pipelines that serve Permian Basin and/or Rocky Mountain producers increased a net $5 million period-to-period primarily due to higher other revenues, which accounted for a $12 million increase, higher average transportation fees, which accounted for a $7 million increase, and a 78 MBPD (net to our interest) increase in transportation volumes, which accounted for an additional $5 million increase, partially offset by higher maintenance and other operating costs, which accounted for a $19 million decrease.
−Removed: Gross operating margin from our Dixie Pipeline and related terminals decreased $10 million period-to-period primarily due to higher maintenance and other operating costs.
+Added: Gross operating margin from our South Texas NGL Pipeline System increased $31 million period-to-period primarily due to higher average transportation and related fees, which accounted for a $19 million increase, a 26 MBPD increase in transportation volumes, which accounted for a $6 million increase, and higher storage and other revenues, which accounted for an additional $6 million increase.
+Added: On a combined basis, gross operating margin for our pipelines that serve Permian Basin and/or Rocky Mountain producers increased a net $24 million period-to-period primarily due to higher average transportation fees, which accounted for a $27 million increase, a 72 MBPD (net to our interest) increase in transportation volumes, which accounted for a $9 million increase, and higher other revenues, which accounted for an additional $9 million increase, partially offset by higher maintenance and other operating costs, which accounted for a $21 million decrease.
+Added: Gross operating margin from our Chambers County storage complex increased $13 million period-to-period primarily due to lower operating costs, which accounted for a $7 million increase, and higher storage revenues, which accounted for an additional $6 million increase.
+Added: Gross operating margin from our South Louisiana NGL Pipeline System increased $11 million period-to-period primarily due to higher average transportation fees, which accounted for a $4 million increase, lower operating costs, which accounted for a $4 million increase, and a 16 MBPD increase in transportation volumes, which accounted for an additional $3 million increase.
NGL fractionation
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022 .
−Removed: Gross operating margin from NGL fractionation during the second quarter of 2023 increased $1 million when compared to the second quarter of 2022.
−Removed: Gross operating margin from our Chambers County NGL fractionation complex increased a net $7 million quarter-to-quarter primarily due to lower utility and other operating costs, which accounted for a $35 million increase, and a 34 MBPD (net to our interest) increase in fractionation volumes, which accounted for an additional $6 million increase, partially offset by lower average fractionation fees, which accounted for an $18 million decrease, and lower ancillary service revenues, which accounted for an additional $16 million decrease.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022 .
+Added: Gross operating margin from NGL fractionation during the third quarter of 2023 decreased $1 million when compared to the third quarter of 2022.
+Added: Gross operating margin from our Chambers County NGL fractionation complex was flat quarter-to-quarter primarily due to a 114 MBPD (net to our interest) increase in fractionation volumes, which accounted for a $20 million increase, and lower utility and other operating costs, which accounted for an additional $8 million increase, offset by lower average fractionation fees, which accounted for a $24 million decrease, and lower ancillary service revenues, which accounted for an additional $5 million decrease.
+Added: NGL fractionation volumes at our Chambers County NGL fractionation complex increased primarily due to contributions from Frac 12, which entered service in July 2023.
On a combined basis, gross operating margin from our other NGL fractionators decreased $3 million quarter-to-quarter primarily due to lower average fractionation fees.
NGL fractionation volumes from our other NGL fractionators increased a combined 34 MBPD (net to our interest) quarter-to-quarter.
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Gross operating margin from NGL fractionation during the six months ended June 30, 2023 decreased $47 million when compared to the six months ended June 30, 2022.
−Removed: Gross operating margin from our Chambers County NGL fractionation complex decreased a net $35 million period-to-period primarily due to lower ancillary services revenues, which accounted for a $41 million decrease, and lower average fractionation fees, which accounted for an additional $ 30 million decrease, partially offset by lower utility and other operating costs, which accounted for a $33 million increase.
−Removed: NGL fractionation volumes at our Chambers County NGL fractionation complex increased 15 MBPD (net to our interest) period-to-period.
−Removed: On a combined basis, gross operating margin from our other NGL fractionators decreased a net $16 million period-to-period primarily due to lower average fractionation fees, which accounted for an $11 million decrease, and lower ancillary service revenues, which accounted for an additional $9 million decrease, partially offset by a combined 31 MBPD (net to our interest) increase in NGL fractionation volumes, which accounted for a $6 million increase.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Gross operating margin from NGL fractionation during the nine months ended September 30, 2023 decreased $48 million when compared to the nine months ended September 30, 2022.
+Added: Gross operating margin from our Chambers County NGL fractionation complex decreased a net $35 million period-to-period primarily due to lower average fractionation fees, which accounted for a $53 million decrease , and lower ancillary services revenues, which accounted for an additional $46 million decrease, partially offset by lower utility and other operating costs, which accounted for a $40 million increase, and a 155 MBPD (net to our interest) increase in fractionation volumes, which accounted for an additional $21 million increase.
+Added: NGL fractionation volumes from our Chambers County NGL fractionation complex increased primarily due to contributions from Frac 12.
+Added: On a combined basis, gross operating margin from our other NGL fractionators decreased a net $16 million period-to-period primarily due to lower average fractionation fees, which accounted for a $26 million decrease, and lower ancillary service revenues, which accounted for an additional $8 million decrease, partially offset by a combined 32 MBPD (net to our interest) increase in NGL fractionation volumes, which accounted for a $13 million increase.
Crude Oil Pipelines & Services
1 unchanged sentence
For the Three Months
−Removed: Ended June 30,
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: Ended September 30,
+Added: For the Nine Months
+Added: Ended September 30,
Segment gross operating margin:
4 unchanged sentences
Crude oil marine terminal volumes (MBPD)
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022 .
−Removed: Gross operating margin from our Crude Oil Pipelines & Services segment for the second quarter of 2023 increased $15 million when compared to the second quarter of 2022.
−Removed: Gross operating margin from our Midland-to-ECHO System and related business activities increased a net $59 million quarter-to-quarter primarily due to higher average transportation fees and related margins from marketing activities, which accounted for a $45 million increase, and a 124 MBPD (net to our interest) increase in transportation volumes, which accounted for an additional $23 million increase, partially offset by higher utility, chemical and other operating costs, which accounted for a $4 million decrease.
−Removed: Gross operating margin from our crude oil marketing activities (excluding those attributable to the Midland-to-ECHO System) increased $51 million quarter-to-quarter primarily due to higher non-cash, mark-to-market earnings, which accounted for a $33 million increase, and higher average sales margins, which accounted for an additional $20 million increase.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022 .
+Added: Gross operating margin from our Crude Oil Pipelines & Services segment for the third quarter of 2023 increased $17 million when compared to the third quarter of 2022.
Gross operating margin from our West Texas Pipeline System increased $72 million quarter-to-quarter primarily due to higher ancillary service and other revenues.
Transportation volumes on our West Texas Pipeline System increased 46 MBPD quarter-to-quarter.
−Removed: Gross operating margin from our EFS Midstream System decreased $82 million quarter-to-quarter primarily due to lower deficiency revenues as a result of the expiration of minimum volume commitments under certain long-term gathering agreements at the end of June 2022, which accounted for a $54 million decrease, and lower average transportation fees, which accounted for an additional $20 million decrease.
−Removed: Our EFS Midstream System continues to transport volumes produced on dedicated acreage through the remaining term of these agreements, most of which have a life-of-lease duration.
−Removed: Gross operating margin from our South Texas Crude Oil Pipeline System decreased $30 million quarter-to-quarter primarily due to lower ancillary service and other revenues, which accounted for an $11 million decrease, lower deficiency revenues as a result of the expiration of minimum volume commitments under certain long-term agreements at the end of July 2022, which accounted for an $8 million decrease, and lower average transportation fees, which accounted for an additional $7 million decrease.
+Added: Gross operating margin from our Midland-to-ECHO System and related business activities increased $52 million quarter-to-quarter primarily due to a 137 MBPD (net to our interest) increase in transportation volumes, which accounted for a $27 million increase, and higher average transportation fees and related margins from marketing activities, which accounted for an additional $25 million increase.
+Added: Gross operating margin from our ECHO terminal increased $13 million quarter-to-quarter primarily due to higher terminaling and storage revenues, which accounted for a $9 million increase, and lower utility and other operating costs, which accounted for an additional $4 million increase.
+Added: Gross operating margin from crude oil activities at EHT increased $11 million quarter-to-quarter primarily due to higher loading revenues.
+Added: Crude oil terminal volumes at EHT increased 200 MBPD quarter-to-quarter.
+Added: Gross operating margin from our crude oil marketing activities (excluding those attributable to the Midland-to-ECHO System) decreased $100 million quarter-to-quarter primarily due to lower non-cash, mark-to-market earnings, which accounted for a $75 million decrease, and lower average sales margins, which accounted for an additional $28 million decrease.
+Added: Gross operating margin from our South Texas Crude Oil Pipeline System decreased $25 million quarter-to-quarter primarily due to lower ancillary service and other revenues.
Transportation volumes on our South Texas Crude Oil Pipeline System decreased 15 MBPD quarter-to-quarter.
−Removed: Gross operating margin from our equity investment in the Seaway Pipeline decreased $24 million quarter-to-quarter primarily due to lower ancillary service and other fee revenues.
+Added: Gross operating margin from our equity investment in the Seaway Pipeline decreased $6 million quarter-to-quarter primarily due to lower transportation and related fee revenues.
Transportation volumes on our Seaway Pipeline increased 104 MBPD (net to our interest) quarter-to-quarter.
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Gross operating margin from our Crude Oil Pipelines & Services segment for the six months ended June 30, 2023 decreased $3 million when compared to the six months ended June 30, 2022.
−Removed: Gross operating margin from our crude oil marketing activities (excluding those attributable to the Midland-to-ECHO System) increased $95 million period-to-period primarily due to higher non-cash, mark-to-market earnings, which accounted for a $74 million increase, and higher average sales margins, which accounted for an additional $27 million increase.
+Added: Gross operating margin from our EFS Midstream System decreased a net $4 million quarter-to-quarter primarily due to lower average transportation fees, which accounted for a $9 million decrease, partially offset by a 165 MMcf/d and 20 MBPD increase in natural gas and condensate transportation volumes, respectively, which accounted for a $6 million increase.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Gross operating margin from our Crude Oil Pipelines & Services segment for the nine months ended September 30, 2023 increased $14 million when compared to the nine months ended September 30, 2022.
Gross operating margin from our West Texas Pipeline System increased $160 million period-to-period primarily due to higher ancillary service and other revenues.
Transportation volumes on our West Texas Pipeline System increased 24 MBPD period-to-period.
−Removed: Gross operating margin from our Midland-to-ECHO System and related business activities increased a net $73 million period-to-period primarily due to higher average transportation fees and related margins from marketing activities, which accounted for a $49 million increase, and a 93 MBPD (net to our interest) increase in transportation volumes, which accounted for an additional $36 million increase, partially offset by higher utility, chemical and other operating costs, which accounted for a $10 million decrease.
−Removed: Gross operating margin from our EFS Midstream system decreased $157 million period-to-period primarily due to lower deficiency revenues as a result of the aforementioned expiration of minimum volume commitments, which accounted for a $108 million decrease, and lower average transportation fees, which accounted for an additional $41 million decrease.
−Removed: Gross operating margin from our South Texas Crude Oil Pipeline System decreased $42 million period-to-period primarily due to lower deficiency revenues as a result of the aforementioned expiration of minimum volume commitments, which accounted for a $15 million decrease, lower average transportation fees, which accounted for a $13 million decrease, and lower ancillary service and other revenues, which accounted for an additional $9 million decrease.
+Added: Gross operating margin from our Midland-to-ECHO System and related business activities increased a net $125 million period-to-period primarily due to higher average transportation fees and related margins from marketing activities, which accounted for a $76 million increase, and a 108 MBPD (net to our interest) increase in transportation volumes, which accounted for an additional $62 million increase, partially offset by higher chemical, utility and other operating costs, which accounted for a $19 million decrease.
+Added: Gross operating margin from our ECHO terminal increased $17 million period-to-period primarily due to higher terminaling and storage revenues, which accounted for a $14 million increase, and lower utility and other operating costs, which accounted for an additional $3 million increase.
+Added: Gross operating margin from crude oil activities at EHT increased a net $8 million period-to-period primarily due to higher loading revenues, which accounted for a $17 million increase, partially offset by lower storage and other revenues, which accounted for a $10 million decrease.
+Added: Crude oil terminal volumes at EHT increased 123 MBPD period-to-period.
+Added: Gross operating margin from our EFS Midstream system decreased $162 million period-to-period primarily due to lower deficiency revenues as a result of the expiration of minimum volume commitments under certain long-term gathering agreements at the end of June 2022, which accounted for a $106 million decrease, and lower average transportation fees, which accounted for an additional $51 million decrease.
+Added: Gross operating margin from our South Texas Crude Oil Pipeline System decreased $67 million period-to-period primarily due to lower ancillary service and other revenues, which accounted for a $29 million decrease, lower deficiency revenues as a result of the expiration of minimum volume commitments under certain long-term agreements at the end of July 2022, which accounted for an $18 million decrease, and lower average transportation fees, which accounted for an additional $13 million decrease.
Transportation volumes on our South Texas Crude Oil Pipeline System decreased 32 MBPD period-to-period.
−Removed: Gross operating margin from our equity investment in the Seaway Pipeline decreased $42 million period-to-period primarily due to lower ancillary service and other fee revenues.
+Added: Gross operating margin from our equity investment in the Seaway Pipeline decreased $48 million period-to-period primarily due to lower transportation and related fee revenues.
Transportation volumes on our Seaway Pipeline increased 73 MBPD (net to our interest) period-to-period.
−Removed: Gross operating margin from our Midland terminal decreased $15 million period-to-period primarily due to lower ancillary service and other revenues, which accounted for a $9 million decrease, and higher operating costs, which accounted for an additional $8 million decrease.
+Added: Gross operating margin from our Midland terminal decreased $13 million period-to-period primarily due to lower ancillary service and other revenues.
+Added: Gross operating margin from our crude oil marketing activities (excluding those attributable to the Midland-to-ECHO System) decreased $5 million period-to-period primarily due to lower average sales margins.
Natural Gas Pipelines & Services
1 unchanged sentence
For the Three Months
−Removed: Ended June 30,
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: Ended September 30,
+Added: For the Nine Months
+Added: Ended September 30,
Segment gross operating margin
1 unchanged sentence
Natural gas pipeline transportation volumes (BBtus/d)
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022 .
−Removed: Gross operating margin from our Natural Gas Pipelines & Services segment for the second quarter of 2023 increased $9 million when compared to the second quarter of 2022.
−Removed: Gross operating margin from our natural gas marketing activities increased $11 million quarter-to-quarter primarily due to higher average sales margins attributable to location price differentials.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022 .
+Added: Gross operating margin from our Natural Gas Pipelines & Services segment for the third quarter of 2023 decreased $39 million when compared to the third quarter of 2022.
+Added: On a combined basis, gross operating margin from our Jonah Gathering System, Piceance Basin Gathering System, and San Juan Gathering System in the Rocky Mountains decreased $26 million quarter-to-quarter primarily due to lower average gathering fees, which accounted for a $16 million decrease, higher maintenance and other operating costs, which accounted for a $5 million decrease, and a combined 90 BBtus/d decrease in gathering volumes, which accounted for an additional $2 million decrease.
+Added: Gross operating margin from our natural gas marketing activities decreased $11 million quarter-to-quarter primarily due to lower average sales margins attributable to location price differentials.
+Added: Gross operating margin from our Acadian Gas System and Haynesville Gathering System decreased a combined $10 million quarter-to-quarter primarily due to lower other revenues.
+Added: On a combined basis, transportation volumes increased 51 BBtus/d quarter-to-quarter.
Gross operating margin from our East Texas Gathering System increased $5 million quarter-to-quarter primarily due to a 240 BBtus/d increase in gathering volumes.
−Removed: Gross operating margin from our Delaware Basin Gathering System increased $6 million quarter-to-quarter primarily due to higher average gathering fees.
−Removed: Natural gas gathering volumes on our Delaware Basin Gathering System increased 67 BBtus/d quarter-to-quarter.
−Removed: Gross operating margin from our Acadian Gas System increased $4 million quarter-to-quarter primarily due to lower maintenance and other operating costs.
−Removed: Transportation volumes on our Acadian Gas System increased 91 BBtus/d quarter-to-quarter.
−Removed: Gross operating margin from our Texas Intrastate System increased a net $2 million quarter-to-quarter primarily due a 793 BBtus/d increase in transportation volumes, which accounted for a $7 million increase, and higher average transportation fees, which accounted for an additional $5 million increase, partially offset by lower ancillary and other revenues, which accounted for a $10 million decrease.
−Removed: On a combined basis, gross operating margin from our Jonah Gathering System, Piceance Basin Gathering System, and San Juan Gathering System in the Rocky Mountains decreased $22 million quarter-to-quarter primarily due to lower average gathering fees on our San Juan Gathering System, which accounted for a $12 million decrease, a combined 126 BBtus/d decrease in gathering volumes, which accounted for a $3 million decrease, and higher maintenance and other operating costs, which accounted for an additional $3 million decrease.
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Gross operating margin from our Natural Gas Pipelines & Services segment for the six months ended June 30, 2023 increased $103 million when compared to the six months ended June 30, 2022.
+Added: Gross operating margin from our Midland Basin Gathering System, increased a net $3 million quarter-to-quarter primarily due to a 308 BBtus/d increase in natural gas gathering volumes, which accounted for a $9 million increase, partially offset by higher rental and other operating costs, which accounted for a $6 million decrease.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Gross operating margin from our Natural Gas Pipelines & Services segment for the nine months ended September 30, 2023 increased $64 million when compared to the nine months ended September 30, 2022.
Gross operating margin from our natural gas marketing activities increased $24 million period-to-period primarily due to higher average sales margins attributable to location price differentials.
−Removed: Gross operating margin from our Texas Intrastate System increased a net $20 million period-to-period primarily due to higher average transportation fees, which accounted for a $19 million increase, and a 675 BBtus/d increase in transportation volumes, which accounted for an additional $14 million increase, partially offset by higher operating costs, which accounted for a $9 million decrease, and lower ancillary and other revenues, which accounted for an additional $4 million decrease.
−Removed: Gross operating margin from our East Texas Gathering System increased $13 million period-to-period primarily due to a 406 BBtus/d increase in gathering volumes.
−Removed: Gross operating margin from our Delaware Basin Gathering System increased $9 million period-to-period primarily due to a 165 BBtus/d increase in gathering volumes, which accounted for a $5 million increase, and higher average gathering fees, which accounted for an additional $3 million increase.
−Removed: On a combined basis, gross operating margin from our Jonah Gathering System, Piceance Basin Gathering System and San Juan Gathering System in the Rocky Mountains increased a net $6 million period-to-period primarily due to higher average gathering fees on our Jonah Gathering System and San Juan Gathering System, which accounted for a $19 million increase, partially offset by higher maintenance and other operating costs, which accounted for a $7 million decrease, and a decrease in condensate sales, which accounted for an additional $4 million decrease.
−Removed: Natural gas gathering volumes on our Rocky Mountain gathering systems decreased a combined 133 BBtus/d period-to-period.
−Removed: Gross operating margin from our Acadian Gas System increased $4 million period-to-period primarily due to lower maintenance and other operating costs.
−Removed: Transportation volumes on our Acadian Gas System increased 154 BBtus/d period-to-period.
+Added: Gross operating margin from our East Texas Gathering System increased a net $17 million period-to-period primarily due to a 350 BBtus/d increase in gathering volumes, which accounted for a $22 million increase, partially offset by higher maintenance and other operating costs, which accounted for a $5 million decrease.
+Added: Gross operating margin from our Texas Intrastate System increased a net $15 million period-to-period primarily due to a 627 BBtus/d increase in transportation volumes, which accounted for a $19 million increase, and higher average transportation fees, which accounted for an additional $17 million increase, partially offset by higher operating costs, which accounted for a $13 million decrease, and lower ancillary and other revenues, which accounted for an additional $8 million decrease.
+Added: Gross operating margin from our Delaware Basin Gathering System increased $11 million period-to-period primarily due to higher ancillary service and other revenues, which accounted for a $6 million increase, and a 95 BBtus/d increase in gathering volumes, which accounted for an additional $4 million increase.
+Added: Gross operating margin from our Midland Basin Gathering System increased a net $7 million period-to-period primarily due to an increase in total natural gas gathering volumes, which accounted for a $43 million increase, partially offset by higher rental and other operating costs, which accounted for a $36 million decrease.
+Added: Gathering volumes on our Midland Basin Gathering System, which reflect the average daily operating rates from the time the asset was acquired, increased 250 BBtus/d period-to-period.
+Added: On a combined basis, gross operating margin from our Jonah Gathering System, Piceance Basin Gathering System and San Juan Gathering System in the Rocky Mountains decreased a net $20 million period-to-period primarily due to higher maintenance and other operating costs, which accounted for a $15 million decrease, a 119 BBtus/d decrease in gathering volumes, which accounted for a $9 million decrease, and a decrease in condensate sales, which accounted for an additional $5 million decrease, partially offset by higher average gathering fees, which accounted for a $10 million increase.
Petrochemical & Refined Products Services
1 unchanged sentence
For the Three Months
−Removed: Ended June 30,
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: Ended September 30,
+Added: For the Nine Months
+Added: Ended September 30,
Segment gross operating margin:
14 unchanged sentences
Propylene production and related activities
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022 .
−Removed: Gross operating margin from propylene production and related activities for the second quarter of 2023 decreased $29 million when compared to the second quarter of 2022.
−Removed: Gross operating margin from our Chambers County propylene production facilities decreased a combined $34 million quarter-to-quarter primarily due to lower average propylene sales margins, which accounted for a $23 million decrease, and lower propylene sales volumes, which accounted for an additional $13 million decrease.
−Removed: Propylene and associated by-product production volumes at these facilities decreased a combined 25 MBPD (net to our interest) quarter-to-quarter primarily due to planned major maintenance activities at three of our propylene splitters during the second quarter of 2023.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022 .
+Added: Gross operating margin from propylene production and related activities for the third quarter of 2023 increased $10 million when compared to the third quarter of 2022.
Gross operating margin from our propylene pipeline systems increased a combined $6 million quarter-to-quarter primarily due to higher average transportation fees.
−Removed: On a combined basis, transportation volumes were flat (net to our interest) quarter-to-quarter.
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Gross operating margin from propylene production and related activities for the six months ended June 30, 2023 decreased $57 million when compared to the six months ended June 30, 2022.
−Removed: Gross operating margin from our Chambers County propylene production facilities decreased a combined $71 million period-to-period primarily due to lower propylene sales volumes, which accounted for a $48 million decrease, and lower average propylene sales margins, which accounted for an additional $29 million decrease.
−Removed: Propylene and associated by-product production volumes at these facilities decreased a combined 17 MBPD (net to our interest) period-to-period primarily due to planned major maintenance activities at our PDH 1 facility during the first quarter of 2023 and planned major maintenance at three of our propylene splitters during the second quarter of 2023.
+Added: On a combined basis, transportation volumes decreased 5 MBPD (net to our interest) quarter-to-quarter.
+Added: On a combined basis, gross operating margin from our Chambers County propylene production facilities decreased a net $1 million quarter-to-quarter primarily due to lower propylene sales volumes, which accounted for a $19 million decrease, higher chemical, maintenance and other operating costs, which accounted for a $13 million decrease, and lower average propylene sales margins, which accounted for an additional $8 million decrease, partially offset by higher propylene processing revenues, which accounted for a $33 million increase, and higher storage and other revenues, which accounted for an additional $6 million increase.
+Added: Propylene and associated by-product production volumes at these facilities increased a combined 1 MBPD (net to our interest) quarter-to-quarter primarily due to contributions from our PDH 2 facility, which was placed into service in July 2023, partially offset by downtime at our PDH 1 facility for unplanned maintenance during the third quarter of 2023.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Gross operating margin from propylene production and related activities for the nine months ended September 30, 2023 decreased $47 million when compared to the nine months ended September 30, 2022.
+Added: On a combined basis, gross operating margin from our Chambers County propylene production facilities decreased a net $72 million period-to-period primarily due to lower propylene sales volumes, which accounted for a $67 million decrease, and lower average propylene sales margins, which accounted for an additional $38 million decrease, partially offset by higher propylene processing revenues, which accounted for a $22 million increase, and higher storage and other revenues, which accounted for an additional $11 million increase.
+Added: Propylene and associated by-product production volumes at these facilities, which reflect the average daily operating rates from the time the asset was placed into service, decreased a combined 1 MBPD (net to our interest) period-to-period primarily due to major maintenance activities at our PDH 1 facility during the first and third quarters of 2023 and major maintenance at three of our propylene splitters during the second quarter of 2023, partially offset by production from our PDH 2 facility, which was placed into service in July 2023.
Gross operating margin from our propylene pipeline systems increased a combined $14 million period-to-period primarily due to higher average transportation fees.
1 unchanged sentence
Butane isomerization and related operations
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022 .
−Removed: Gross operating margin from butane isomerization and related operations increased $8 million quarter-to-quarter primarily due to lower utility and other operating costs.
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Gross operating margin from butane isomerization and related operations increased $8 million period-to-period primarily due to lower utility and other operating costs.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022 .
+Added: Gross operating margin from butane isomerization and related operations was flat quarter-to-quarter primarily due to lower utility and other operating costs, which accounted for a $4 million increase, and a 17 MBPD increase in transportation volumes, which accounted for an additional $2 million increase, offset by lower average isomerization fees, which accounted for a $6 million decrease.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Gross operating margin from butane isomerization and related operations increased a net $8 million period-to-period primarily due to lower utility and other operating costs, which accounted for a $15 million increase, and a 16 MBPD increase in transportation volumes, which accounted for an additional $3 million increase, partially offset by lower by-product sales, which accounted for a $10 million decrease.
Octane enhancement and related plant operations
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022 .
−Removed: Gross operating margin from our octane enhancement and related plant operations for the second quarter of 2023 decreased a net $52 million when compared to the second quarter of 2022 primarily due to lower average sales margins, which accounted for a $38 million decrease, and lower sales volumes, which accounted for an additional $20 million decrease, partially offset by lower utility and other operating costs, which accounted for a $6 million increase.
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Gross operating margin from our octane enhancement and related plant operations during the six months ended June 30, 2023 decreased $27 million when compared to the six months ended June 30, 2022 primarily due to lower sales volumes, which accounted for a $15 million decrease, and lower average sales margins, which accounted for an additional $14 million decrease.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022 .
+Added: Gross operating margin from our octane enhancement and related plant operations for the third quarter of 2023 increased $60 million when compared to the third quarter of 2022 primarily due to higher average sales margins, which accounted for a $35 million increase, higher sales volumes, which accounted for a $16 million increase, and lower utility and other operating costs, which accounted for an additional $8 million increase.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Gross operating margin from our octane enhancement and related plant operations during the nine months ended September 30, 2023 increased $33 million when compared to the nine months ended September 30, 2022 primarily due to higher average sales margins, which accounted for a $24 million increase, and lower utility and other operating costs, which accounted for an additional $7 million increase.
Refined products pipelines and related activities
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022 .
−Removed: Gross operating margin from refined products pipelines and related activities for the second quarter of 2023 increased $25 million when compared to the second quarter of 2022.
−Removed: Gross operating margin from our refined products marketing activities increased $26 million quarter-to-quarter primarily due to higher average sales margins.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022 .
+Added: Gross operating margin from refined products pipelines and related activities for the third quarter of 2023 increased $26 million when compared to the third quarter of 2022.
+Added: Gross operating margin from our refined products marketing activities increased a net $13 million quarter-to-quarter primarily due to higher average sales margins, which accounted for a $22 million increase, partially offset by lower sales volumes, which accounted for an $11 million decrease.
Gross operating margin from our refined products terminal in Beaumont, Texas increased $5 million quarter-to-quarter primarily due to higher storage and other fee revenues.
Refined product marine terminal volumes at Beaumont increased 157 MBPD quarter-to-quarter.
−Removed: Gross operating margin from our TE Products Pipeline System decreased $8 million quarter-to-quarter primarily due to higher operating costs.
−Removed: Overall, transportation volumes on our TE Products Pipeline System increased a net 51 MBPD quarter-to-quarter.
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Gross operating margin from refined products pipelines and related activities for the six months ended June 30, 2023 increased $41 million when compared to the six months ended June 30, 2022.
+Added: Gross operating margin from our TE Products Pipeline System increased $3 million quarter-to-quarter primarily due to higher average transportation and related fees.
+Added: Overall, transportation volumes on our TE Products Pipeline System increased 26 MBPD quarter-to-quarter.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Gross operating margin from refined products pipelines and related activities for the nine months ended September 30, 2023 increased $67 million when compared to the nine months ended September 30, 2022.
Gross operating margin from our refined products marketing activities increased $64 million period-to-period primarily due to higher average sales margins.
2 unchanged sentences
Gross operating margin from our TE Products Pipeline System decreased $20 million period-to-period primarily due to higher operating costs.
−Removed: Overall, transportation volumes on our TE Products Pipeline System increased a net 38 MBPD period-to-period.
+Added: Overall, transportation volumes on our TE Products Pipeline System increased 34 MBPD period-to-period.
Ethylene exports and related activities
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022 .
−Removed: Gross operating margin from ethylene exports and related activities during the second quarter of 2023 increased a net $4 million when compared to the second quarter of 2022.
−Removed: Gross operating margin from our ethylene pipelines, storage and related marketing activities increased a combined $6 million quarter-to-quarter primarily due to higher transportation, storage and other fee revenues, which accounted for a $3 million increase, and higher average sales margins, which accounted for an additional $2 million increase.
−Removed: Gross operating margin from our ethylene export terminal decreased $2 million quarter-to-quarter primarily due to lower average loading fees.
−Removed: Ethylene transportation volumes and ethylene export volumes increased 17 MBPD and 1 MBPD, respectively, quarter-to-quarter (net to our interest).
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Gross operating margin from ethylene exports and related activities during the six months ended June 30, 2023 increased a net $1 million when compared to the six months ended June 30, 2022.
−Removed: Gross operating margin from our ethylene pipelines, storage and related marketing activities increased a combined $6 million period-to-period primarily due to higher transportation, storage and other fee revenues, which accounted for a $4 million increase, and higher sales volumes, which accounted for an additional $2 million increase.
−Removed: Gross operating margin from our ethylene export terminal decreased $5 million period-to-period primarily due to lower average loading fees.
−Removed: Ethylene transportation volumes increased 15 MBPD and ethylene export volumes were flat period-to-period (net to our interest).
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022 .
+Added: Gross operating margin from ethylene exports and related activities during the third quarter of 2023 was flat when compared to the third quarter of 2022.
+Added: On a combined basis, gross operating margin from our ethylene pipelines, storage and related marketing activities increased $2 million quarter-to-quarter primarily due to a combined 30 MBPD (net to our interest) increase in transportation volumes.
+Added: Gross operating margin from our ethylene export terminal decreased a net $2 million quarter-to-quarter primarily due to lower average loading fees, which accounted for a $4 million decrease, and higher operating costs, which accounted for an additional $3 million decrease, partially offset by a 6 MBPD (net to our interest) increase in ethylene export volumes, which accounted for a $5 million increase.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Gross operating margin from ethylene exports and related activities during the nine months ended September 30, 2023 increased a net $1 million when compared to the nine months ended September 30, 2022.
+Added: On a combined basis, gross operating margin from our ethylene pipelines, storage and related marketing activities increased $7 million period-to-period primarily due to a combined 21 MBPD (net to our interest) increase in transportation volumes.
+Added: Gross operating margin from our ethylene export terminal decreased a net $6 million period-to-period primarily due to lower average loading fees, which accounted for a $7 million decrease, and higher operating costs, which accounted for an additional $2 million decrease, partially offset by a 1 MBPD (net to our interest) increase in ethylene export volumes, which accounted for a $3 million increase.
Marine transportation and other services
−Removed: Second Quarter of 2023 Compared to Second Quarter of 2022 .
−Removed: Gross operating margin from marine transportation and other services increased $6 million quarter-to-quarter primarily due to higher average fees and fleet utilization rates.
−Removed: Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022 .
−Removed: Gross operating margin from marine transportation and other services increased a net $11 million period-to-period primarily due to higher average fees, which accounted for an $11 million increase, and higher fleet utilization rates, which accounted for an additional $6 million increase, partially offset by higher operating costs, which accounted for a $6 million decrease.
+Added: Third Quarter of 2023 Compared to Third Quarter of 2022 .
+Added: Gross operating margin from marine transportation and other services increased a net $4 million quarter-to-quarter primarily due to higher average fees, which accounted for a $7 million increase, partially offset by higher operating costs, which accounted for a $3 million decrease.
+Added: Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022 .
+Added: Gross operating margin from marine transportation and other services increased a net $15 million period-to-period primarily due to higher average fees, which accounted for a $16 million increase, and higher fleet utilization rates, which accounted for an additional $7 million increase, partially offset by higher operating costs, which accounted for a $9 million decrease.
Liquidity and Capital Resources
Based on current market conditions (as of the filing date of this quarterly report), we believe that the Partnership and its consolidated businesses will have sufficient liquidity, cash flow from operations and access to capital markets to fund their capital investments and working capital needs for the reasonably foreseeable future.
−Removed: At June 30, 2023, we had $4.0 billion of consolidated liquidity.
+Added: At September 30, 2023, we had $3.8 billion of consolidated liquidity.
This amount was comprised of $3.6 billion of available borrowing capacity under EPO’s revolving credit facilities, which is the net of $4.2 billion of total borrowing capacity under EPO’s revolving credit facilities and $620 million outstanding under EPO’s commercial paper program, and $171 million of unrestricted cash on hand.
1 unchanged sentence
We have a universal shelf registration statement on file with the SEC which allows the Partnership and EPO to issue an unlimited amount of equity and debt securities, respectively.
−Removed: Enterprise Declares Cash Distribution for Second Quarter of 2023
−Removed: On July 10, 2023, we announced that the Board declared a quarterly cash distribution of $0.50 per common unit, or $2.00 per unit on an annualized basis, to be paid to the Partnership’s common unitholders with respect to the second quarter of 2023.
−Removed: The quarterly distribution is payable on August 14, 2023 to unitholders of record as of the close of business on July 31, 2023.
+Added: Enterprise Declares Cash Distribution for Third Quarter of 2023
+Added: On October 5, 2023, we announced that the Board declared a quarterly cash distribution of $0.50 per common unit, or $2.00 per unit on an annualized basis, to be paid to the Partnership’s common unitholders with respect to the third quarter of 2023.
+Added: The quarterly distribution is payable on November 14, 2023 to unitholders of record as of the close of business on October 31, 2023.
The total amount to be paid is $1.1 billion, which includes $10 million for distribution equivalent rights on phantom unit awards.
2 unchanged sentences
Consolidated Debt
−Removed: At June 30, 2023, the average maturity of EPO’s consolidated debt obligations was approximately 19.7 years.
−Removed: The following table presents the scheduled maturities of principal amounts of EPO’s consolidated debt obligations at June 30, 2023 for the years indicated (dollars in millions):
+Added: At September 30, 2023, the average maturity of EPO’s consolidated debt obligations was approximately 19.3 years.
+Added: The following table presents the scheduled maturities of principal amounts of EPO’s consolidated debt obligations at September 30, 2023 for the years indicated (dollars in millions):
Scheduled Maturities of Debt
8 unchanged sentences
EPO’s borrowing capacity was unchanged from the prior 364-day revolving credit agreement.
−Removed: As of June 30, 2023, there are no principal amounts outstanding under this new revolving credit agreement.
+Added: As of September 30, 2023, there are no principal amounts outstanding under this new revolving credit agreement.
In March 2023, EPO entered into a new revolving credit agreement that matures in March 2028 (the “March 2023 $2.7 Billion Multi-Year Revolving Credit Agreement”).
2 unchanged sentences
Under the new agreement, EPO retains the right to increase its borrowing capacity by up to $500 million to $3.2 billion, provided certain conditions for the election are met.
−Removed: As of June 30, 2023, there are no principal amounts outstanding under this new revolving credit agreement.
+Added: As of September 30, 2023, there are no principal amounts outstanding under this new revolving credit agreement.
For additional information regarding our consolidated debt obligations, see Note 7 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.
Credit Ratings
−Removed: As of August 9 , 2023, the investment-grade credit ratings of EPO’s long-term senior unsecured debt securities were A- from Standard and Poor’s, Baa1 from Moody’s and BBB+ from Fitch Ratings.
+Added: As of November 9 , 2023, the investment-grade credit ratings of EPO’s long-term senior unsecured debt securities were A- from Standard and Poor’s, Baa1 from Moody’s and A- from Fitch Ratings.
In addition, the credit ratings of EPO’s short-term senior unsecured debt securities were A-2 from Standard and Poor’s, P-2 from Moody’s and F-2 from Fitch Ratings.
4 unchanged sentences
In January 2019, we announced that the Board had approved a $2.0 billion multi-year unit buyback program (the “2019 Buyback Program”), which provides the Partnership with an additional method to return capital to investors.
−Removed: The Partnership repurchased 2,910,121 and 3,592,710 common units through open market purchases during the three and six months ended June 30, 2023, respectively.
−Removed: The total cost of these repurchases, including commissions and fees, was $ 75 million and $ 92 million, respectively .
−Removed: As of June 30, 2023, the remaining available capacity under the 2019 Buyback Program was $ 1.2 billion.
+Added: The Partnership elected not to repurchase common units during the three months ended September 30, 2023.
+Added: During the nine months ended September 30, 2023, the Partnership repurchased 3,592,710 common units through open market purchases.
+Added: The total cost of these repurchases, including commissions and fees, was $92 million.
+Added: As of September 30, 2023, the remaining available capacity under the 2019 Buyback Program was $1.2 billion.
Cash Flow Statement Highlights
The following table summarizes our consolidated cash flows from operating, investing and financing activities for the periods indicated (dollars in millions).
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: For the Nine Months
+Added: Ended September 30,
Net cash flows provided by operating activities
9 unchanged sentences
Operating activities
−Removed: Net cash flows provided by operating activities for the six months ended June 30, 2023 decreased $ 779 million when compared to the six months ended June 30, 2022 primarily due to:
+Added: Net cash flows provided by operating activities for the nine months ended September 30, 2023 decreased $111 million when compared to the nine months ended September 30, 2022 primarily due to:
+Added: an $88 million period-to-period decrease resulting from lower partnership earnings (determined by adjusting our $108 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);
a $24 mill ion period-to-period decrease from changes in operating accounts primarily due to the use of working capital employed in our marketing activities, which includes the impact of (i) fluctuations in commodity prices, (ii) timing of our inventory purchase and sale strategies, and (iii) changes in margin deposit requirements associated with our commodity derivative instruments.
−Removed: a $ 151 million period-to-period decrease resulting from lower partnership earnings (determined by adjusting our $ 66 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).
For information regarding significant period-to-period changes in our consolidated net income and underlying segment results, see “ Income Statement Highlights ” and “ Business Segment Highlights ” within this Part I, Item 2.
Investing activities
−Removed: Cash used in investing activities during the six months ended June 30, 2023 decreased a net $ 2.5 billion when compared to the six months ended June 30,  
+Added: Cash used in investing activities during the nine months ended September 30, 2023 decreased a net $2.1 billion when compared to the nine months ended September 30,  
2022 primarily due to:
1 unchanged sentence
partially offset by
−Removed: a $ 702 million period-to-period increase in investments for property, plant and equipment (see “ Capital Investments ” within this Part I, Item 2 for additional information).
+Added: a $1.1 billion period-to-period increase in investments for property, plant and equipment (see “ Capital Investments ” within this Part I, Item 2 for additional information).
Financing activities
−Removed: Cash used in financing activities during the six months ended June 30, 2023 decreased a net $ 952 million when compared to the six months ended June 30,  
+Added: Cash used in financing activities during the nine months ended September 30, 2023 decreased a net $840 million when compared to the nine months ended September 30,  
2022 primarily due to:
−Removed: a net cash inflow of $ 361 million related to debt transactions that occurred during the six months ended June 30, 2023 compared to a net cash outflow of $760 million related to debt transactions that occurred during the six months ended June 30, 2022.
−Removed: During the six months ended June 30, 2023, we issued $1.75 billion aggregate principal amount of senior notes, partially offset by the repayment of $1.25 billion principal amount of senior notes and net repayments of $ 140 million under EPO’s commercial paper program.
−Removed: During the six months ended June 30, 2022, we repaid $ 1.4 billion aggregate principal amount of senior notes, partially offset by net issuances of $640 million under EPO’s commercial paper program;
+Added: a net cash inflow of $627 million related to debt transactions that occurred during the nine months ended September 30, 2023 compared to a net cash outflow of $347 million related to debt transactions that occurred during the nine months ended September 30, 2022.
+Added: During the nine months ended September 30, 2023, we issued $1.75 billion aggregate principal amount of senior notes and issued a net $126 million under EPO’s commercial paper program, partially offset by the repayment of $1.25 billion principal amount of senior notes.
+Added: During the nine months ended September 30, 2022, we repaid $ 1.75 billion aggregate principal amount of senior and junior subordinated notes, partially offset by net issuances of $1.4 billion under EPO’s commercial paper program;
partially offset by
18 unchanged sentences
For the Three Months
−Removed: Ended June 30,
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: Ended September 30,
+Added: For the Nine Months
+Added: Ended September 30,
Net income attributable to common unitholders (GAAP) (1)
5 unchanged sentences
Change in fair market value of derivative instruments
−Removed: Deferred income tax expense (benefit)
+Added: Deferred income tax expense
Sustaining capital expenditures (3)
17 unchanged sentences
For the Three Months
−Removed: Ended June 30,
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: Ended September 30,
+Added: For the Nine Months
+Added: Ended September 30,
Net cash flows provided by operating activities (GAAP)
8 unchanged sentences
Capital Investments
−Removed: During the second quarter of 2023, we completed the 400 MMcf/d expansion of our Acadian Gas System.
−Removed: In addition, PDH 2, Frac XII and our Poseidon natural gas processing plant were placed into service in July 2023.
+Added: Through the third quarter of 2023, we placed into service the 400 MMcf/d expansion of our Acadian Gas System, PDH 2 facility, Frac 12 and our Poseidon natural gas processing plant.
+Added: In October 2023, we placed our Mentone 2 natural gas processing plant into service.
We have approximately $6.8 billion of growth capital projects scheduled to be completed by the first half of 2026, including the following major projects (including their respective scheduled completion dates):
natural gas gathering expansion projects in the Delaware and Midland Basins (2023 and 2024);
−Removed: our Mentone II natural gas processing plant in the Delaware Basin (fourth quarter of 2023);
−Removed: our Texas Western Products System, created by repurposing a portion of our Mid-America Pipeline System’s Rocky Mountain segment and adding westbound service to our Chaparral Pipeline business to transport refined products from the U.S.
+Added: our Texas Western Products System, which is comprised of two wholly owned subsidiaries that will lease capacity on our Chaparral Pipeline and a portion of our Seminole and Mid-America Pipeline System’s Rocky Mountain segment, will offer westbound transportation service of refined products from the U.S.
Gulf Coast to markets in West Texas, New Mexico, Colorado and Utah (fourth quarter of 2023 through second quarter of 2024);
−Removed: our Mentone III natural gas processing plant in the Delaware Basin (first quarter of 2024);
+Added: our Mentone 3 natural gas processing plant in the Delaware Basin (first quarter of 2024);
our Leonidas natural gas processing plant in the Midland Basin (first quarter of 2024);
the expansion of our LPG and PGP export capacity at EHT (first half of 2025);
−Removed: the expansion of our Shin Oak NGL Pipeline (first half of 2025);
−Removed: an Ethane and Propane Export Terminal located in Orange County, Texas (second half of 2025 and first half of 2026);
+Added: the Bahia NGL Pipeline (first half of 2025);
+Added: an NGL fractionator (“Frac 14”) and an associated DIB unit in Chambers County, Texas (second half of 2025);
+Added: our Mentone 4 natural gas processing plant in the Delaware Basin (second half of 2025);
+Added: an eighth natural gas processing plant (“Orion”) in the Midland Basin (second half of 2025);
an expansion of our Morgan’s Point terminal to increase ethylene export capacity (second half of 2024 and second half of 2025);
−Removed: Based on information currently available, we expect our total capital investments for 2023, net of contributions from noncontrolling interests, to approximate $2.8  
−Removed: billion to $3.2 billion, which reflects growth capital investments of $2.4  
−Removed: billion to $2.8 billion and sustaining capital expenditures of $400  
+Added: an Ethane and Propane Export Terminal located in Orange County, Texas (second half of 2025 and first half of 2026).
+Added: Based on information currently available, we expect our total capital investments for 2023, net of contributions from noncontrolling interests, to approximate $3.4 billion, which reflects growth capital investments of $3.0  
+Added: billion and sustaining capital expenditures of $400  
These amounts do not include capital investments associated with our proposed deep-water offshore crude oil terminal (the Sea Port Oil Terminal, or “SPOT”), which remains subject to state and federal permitting, mitigation and related requirements.
7 unchanged sentences
The following table summarizes our capital investments for the periods indicated (dollars in millions):
−Removed: For the Six Months
−Removed: Ended June 30,
+Added: For the Nine Months
+Added: Ended September 30,
Capital investments for property, plant and equipment:
2 unchanged sentences
Cash used for business combinations, net (4)
+Added: Investments in unconsolidated affiliates
Growth and sustaining capital amounts presented in the table above are presented on a cash basis.
4 unchanged sentences
Sustaining capital expenditures include the costs of major maintenance activities at our reaction-based plants, which are accounted for using the deferral method.
−Removed: Amount for the six months ended June 30, 2022 represents net cash used for the acquisition of our Midland Basin System, which closed on February 17, 2022.
−Removed: Comparison of Six Months Ended June 30, 2023 with Six Months Ended June 30, 2022
−Removed: In total, investments in growth capital projects increased $663 million period-to-period primarily due to the following:
−Removed: higher investments in natural gas processing and related pipeline projects in the Permian Basin (e.g., construction of four natural gas processing plants and related gathering systems), which accounted for a $425 million increase;
−Removed: higher investments in our Texas Western Products System, which accounted for an $88 million increase;
−Removed: higher investments in ethane, LPG and ethylene export expansion projects at our Gulf Coast terminals, which accounted for an $83 million increase;
−Removed: higher investments in Frac XII at our Chambers County complex, which accounted for an additional $68 million increase.
+Added: Amount for the nine months ended September 30, 2022 represents net cash used for the acquisition of our Midland Basin System, which closed on February 17, 2022.
+Added: Comparison of Nine Months Ended September 30, 2023 with Nine Months Ended September 30, 2022
+Added: In total, investments in growth capital projects increased a net $985 million period-to-period primarily due to the following:
+Added: higher investments in natural gas processing and gathering projects in the Permian Basin (e.g., construction of four natural gas processing plants and related gathering systems), which accounted for a $632 million increase;
+Added: higher investments in ethane, LPG and ethylene export expansion projects at our Gulf Coast terminals, which accounted for a $175 million increase;
+Added: higher investments in our Texas Western Products System, which accounted for a $164 million increase;
+Added: higher investments in Frac 12 (placed into service in July 2023) at our Chambers County complex, which accounted for an additional $81 million increase;
+Added: partially offset by
+Added: lower investments in PDH 2 (placed into service in July 2023) at our Chambers County complex, which accounted for an $87 million decrease.
Investments attributable to sustaining capital projects increased $66 million period-to-period primarily due to fluctuations in timing and costs of pipeline integrity and similar projects.
16 unchanged sentences
If EPO were to default on any of its Guaranteed Debt, the Partnership would be responsible for full and unconditional repayment of such obligations.
−Removed: At June 30, 2023, the total amount of Guaranteed Debt was $29.4 billion, which was comprised of $26.3 billion of EPO’s senior notes, $2.3 billion of EPO’s junior subordinated notes, $355 million of short-term commercial paper notes and $458 million of related accrued interest.
+Added: At September 30, 2023, the total amount of Guaranteed Debt was $29.4 billion, which was comprised of $26.3 billion of EPO’s senior notes, $2.3 billion of EPO’s junior subordinated notes, $620 million of short-term commercial paper notes and $237 million of related accrued interest.
The Partnership’s guarantees of EPO’s senior note obligations, commercial paper notes and borrowings under bank credit facilities represent unsecured and unsubordinated obligations of the Partnership that rank equal in right of payment to all other existing or future unsecured and unsubordinated indebtedness of the Partnership.
6 unchanged sentences
In accordance with Rule 13.01 of Regulation S-X, the summarized financial information of the Obligor Group excludes the Obligor Group’s equity in income and investments in the consolidated subsidiaries of EPO that are not party to the guarantee obligations (the “Non-Obligor Subsidiaries”).
−Removed: The total carrying value of the Obligor Group’s investments in the Non-Obligor Subsidiaries was $47.3 billion at June 30, 2023.
−Removed: The Obligor Group’s equity in the earnings of the Non-Obligor Subsidiaries for the six months ended June 30, 2023 was $2.7 billion.
+Added: The total carrying value of the Obligor Group’s investments in the Non-Obligor Subsidiaries was $47.5 billion at September 30, 2023.
+Added: The Obligor Group’s equity in the earnings of the Non-Obligor Subsidiaries for the nine months ended September 30, 2023 was $4.3 billion.
Although the net assets and earnings of the Non-Obligor Subsidiaries are not directly available to the holders of the Guaranteed Debt to satisfy the repayment of such obligations, there are no significant restrictions on the ability of the Non-Obligor Subsidiaries to pay distributions or make loans to EPO or the Partnership.
4 unchanged sentences
Selected asset information:
+Added: September 30,
Current receivables from Non-Obligor Subsidiaries
2 unchanged sentences
Other noncurrent assets, excluding investments in Non-Obligor Subsidiaries
−Removed: of $47.3 billion at June 30, 2023 and $47.5 billion at December 31, 2022
+Added: of $47.5 billion at September 30, 2023 and December 31, 2022
Selected liability information:
−Removed: Current portion of Guaranteed Debt, including interest of $458 million at June 30, 2023 and
+Added: Current portion of Guaranteed Debt, including interest of $237 million at September 30, 2023 and
$426 million at December 31, 2022
7 unchanged sentences
The following table presents summarized income statement information for the combined Obligor Group for the periods indicated (dollars in millions):
+Added: September 30,
For the Twelve
3 unchanged sentences
Net income (loss) of Obligor Group excluding equity in earnings of Non-Obligor Subsidiaries of
−Removed: $2.7 billion for the six months ended June 30, 2023 and
+Added: $4.3 billion for the nine months ended September 30, 2023 and
$5.9 billion for the twelve months ended December 31, 2022
19 unchanged sentences
In order to manage such price risks, we enter into commodity derivative instruments such as physical forward contracts, futures contracts, fixed-for-float swaps and basis swaps.
−Removed: At June 30, 2023, our predominant commodity hedging strategies consisted of (i) hedging anticipated future purchases and sales of commodity products associated with transportation, storage and blending activities, (ii) hedging natural gas processing margins, (iii) hedging the fair value of commodity products held in inventory and (iv) hedging anticipated future purchases of power for certain operations in Southeast Texas.
+Added: At September 30, 2023, our predominant commodity hedging strategies consisted of (i) hedging anticipated future purchases and sales of commodity products associated with transportation, storage and blending activities, (ii) hedging natural gas processing margins, (iii) hedging the fair value of commodity products held in inventory and (iv) hedging anticipated future purchases of power for certain operations in Southeast Texas.
For a summary of our portfolio of commodity derivative instruments outstanding, see Note 13 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.
8 unchanged sentences
Classification
+Added: September 30,
Fair value assuming no change in underlying commodity prices
7 unchanged sentences
Classification
+Added: September 30,
Fair value assuming no change in underlying commodity prices
7 unchanged sentences
Classification
+Added: September 30,
Fair value assuming no change in underlying commodity prices
7 unchanged sentences
Classification
+Added: September 30,
Fair value assuming no change in underlying commodity prices
9 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.